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2023-04-28 12:49:19 UPSC CAPF(AC) 2023

Total no. of seats 322
Last date to apply: 16th may ओपन / कमेंट

2023-04-27 23:26:01 Subscribe Our YouTube Channel for Best GS Tricks and GS Classes

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2023-04-27 23:25:43 World Bank

Founded at the Bretton Woods conference in 1944, the International Bank for Reconstruction and Development—soon called the World Bank—has expanded to a closely associated group of five development institutions.

International Bank for Reconstruction and Development (IBRD) provides loans, credits, and grants.

International Development Association (IDA) provides low- or no-interest loans to low-income countries.

The International Finance Corporation (IFC) provides investment, advice, and asset management services to companies and governments.

The Multilateral Investment Guarantee Agency (MIGA) insures lenders and investors against political risk such as war.

The International Centre for the Settlement of Investment Disputes (ICSID) settles investment-disputes between investors and countries.
India is not a member of ICSID.

Recently, the World Bank has released new Purchasing Power Parities (PPPs) for reference year 2017, under International Comparison Program (ICP) that adjusts for differences in the cost of living across economies of the world.

It has also developed the Logistics Performance Index.

Reports Published by World Bank:

•Human Capital Index Report
•Global Economic Prospects
•Ease of Doing Business
•South Asia Economic Focus Report
•Poverty and Shared Prosperity Report
•World Development Report

Projects Supported by the World Bank:

•National Hydrology Project
•Strengthening Teaching-Learning and Results for States (STARS) Project
•National Nutrition Mission
•National Mission for Clean Ganga
•National Biopharma Mission
•Atal Bhujal Yojana.

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2023-04-27 23:25:43 Open Market Operations(OMO)

It is the sale and purchase of government securities and treasury bills by RBI or the central bank of the country.

Aim: To adjust the rupee liquidity conditions in the market on a durable basis.

The central bank carries out the OMO through commercial banks and does not directly deal with the public.

When the RBI feels that there is excess liquidity in the market, it resorts to sale of securities thereby sucking out the rupee liquidity.

Similarly, when the liquidity conditions are tight, RBI may buy securities from the market thereby releasing liquidity into the market.

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2023-04-27 23:25:43 Bad Bank

News: RBI Governor has agreed to look at a proposal for creating a Bad Bank.

Key points:
1. Function as a bank but has bad assets to start with.

2. It is an Asset Reconstruction Company (ARC) or an Asset Management Company (AMC).

3. It is not involved in lending and taking deposits.

4. It helps commercial banks clean up their balance sheets and resolve bad loans.

5. US-based Mellon Bank created the first bad bank in 1988.

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2023-04-27 23:25:43 What is a Technical Recession?

● It is a term used to describe two consecutive quarters of decline in output. In the case of a nation’s economy, the term usually refers to back-to-back contractions in real GDP.

● Difference between Technical Recession and Recession: The technical recession is mainly used to capture the trend in GDP but the Recession encompasses an appreciably more broad-based decline in economic activity that covers several economic variables including employment, household and corporate incomes and sales at businesses.

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2023-04-27 23:25:43 Fiscal Deficit

Finance Minister Nirmala Sitharaman has pegged the fiscal deficit for 2021-22 at 6.8% of GDP
Aims to bring it back below the 4.5% mark by 2025-26.

The deficit has shot up to a high of 9.5% of the GDP due to:

Impact of the COVID-19 pandemic.
Low revenue flows due to the lockdown.
Negative economic growth clubbed with high government spending to provide relief to vulnerable sections of society.

What next?

Finance minister has also proposed to introduce amendments to the FRBM Act to make necessary change in the fiscal consolidation roadmap.

What is fiscal deficit?

Difference between the Revenue Receipts plus Non-debt Capital Receipts (NDCR) and the total expenditure.

In other words, fiscal deficit is “reflective of the total borrowing requirements of Government”.

Impact of high fiscal deficit:

In the economy, there is a limited pool of investible savings. These savings are used by financial institutions like banks to lend to private businesses (both big and small) and the governments (Centre and state).

If the fiscal deficit ratio is too high, it implies that there is a lesser amount of money left in the market for private entrepreneurs and businesses to borrow.

Lesser amount of this money, in turn, leads to higher rates of interest charged on such lending.

A high fiscal deficit and higher interest rates would also mean that the efforts of the Reserve Bank of India to reduce interest rates are undone.

What is the acceptable level of fiscal deficit for a developing economy?

For a developing economy, where private enterprises may be weak and governments may be in a better state to invest, fiscal deficit could be higher than in a developed economy.

In India, the FRBM Act suggests bringing the fiscal deficit down to about 3 percent of the GDP

What is the the FRBM Act?

The Fiscal Responsibility and Budget Management Act (FRBM Act), 2003, establishes financial discipline to reduce fiscal deficit.

What are the objectives of the FRBM Act?

To introduce transparency in India’s fiscal management systems.

Long-term objective is for India to achieve fiscal stability and to give the Reserve Bank of India (RBI) flexibility to deal with inflation in India.

The Act was enacted to introduce more equitable distribution of India’s debt over the years.

Key features of the FRBM Act:

The FRBM Act made it mandatory for the government to place the following along with the Union Budget documents in Parliament annually:

•Medium Term Fiscal Policy Statement.
•Macroeconomic Framework Statement.
•Fiscal Policy Strategy Statement.

Source - PIB
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2023-04-27 23:25:43 SAKSHAM Campaign

● Launched by: It is a people-centric fuel conservation mega campaign launched by Petroleum Conservation Research Association (PCRA).

● Aim: To highlight the adverse health and environmental impacts of increasing carbon footprints.The idea is to convince consumers to switch to cleaner fuels and bring in behavioral change to use fossil fuel intelligently.

ShramShakti Portal:

● Launched by: Ministry of Tribal Affairs

● Purpose: It is a National Migration Support Portal that aims to collect data related to tribal migrant workers and link them with the existing welfare schemes.

● The various data that will be recorded via the portal include demographic profile, livelihood options, skill mapping and migration pattern.

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2023-04-27 23:25:42 All India Finance Institutions (AIFIs)

They Provide medium to long term finance to different sectors through refinance and direct lending.

There are 4 AIFIs- Exim Bank, NABARD, NHB and SIDBI.

All AIFIs are under regulations and supervision of RBI.

Prudential norms relating to asset classification are applicable on AIFIs also.

AIFIs are also subjected to onsite inspection and offsite surveillance by RBI.

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2023-04-27 23:25:42 Digital Payments Index(DPI)

● Released by: Reserve Bank of India(RBI)

● Purpose: To capture the extent of digitisation of payments across the country.

● Parameters: The index comprises five broad parameters with varying weights to measure the penetration of digital payments:
Payment enablers (25%),
Payment infrastructure—demand-side factors (10%), Payment infrastructure—supply-side factors (15%),
Payment performance (45%)
Consumer centricity (5%).

● When will it be published? The index shall be published on RBI’s website on a semi-annual basis from March 2021 onwards with a lag of 4 months.

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