24Th June 2018 : Daily Current Affairs - UPSC CSE/IAS & State PSC

24Th June 2018 : Daily Current Affairs - UPSC CSE/IAS, State PSC, SSC, CDS This page contains "24th June 2018" current affairs analysis from different newspapers and magazines like The hindu, Indian express, PIB and Yojna.

Quality and relevance are two key features considered while writing the content, all the topics are based on the pattern of previously asked questions in exams like UPSC CSE, IAS, State PCS, SSC, Banks PO and likewise competitive exams.

1) India maldives soured Relations

Amid soured relationship between Indian and Maldives, India has now lowered the limit of export for certain commodities like potatoes, onions, and eggs.

There is an agreement in place between Indian and Maldives since 1981, that says India has agreed to supply essential commodities to Maldives based in requirement provided by Maldivian government.

This incident can be seen as a political move by India and will trigger shortage of food in Maldivian population, however Maldivian media has denied any shortage causes by the move so far.

2) Coordinated Patrol (CORPAT)

Why in news ?
A Coordinated Patrol (CORPAT), joint navy exercise between Indian and Bangladesh has to be started soon and will be inaugurated by Indian Navy chief.

Coordinated Patrol (CORPAT)

Coordinated Patrol (CORPAT) is as an annual navy exercise between Indian and neighbouring countries, Bangladesh has just joined the group. The exercise will bring in cooperation between two traditionally strong countries.

In order to enhance Indian sea security, Indian has been organising CORPATs with Indonesia, Myanmar and Thailand, while conducts EEZ surveillance of Maldives, Mauritius and Seychelles on their request.

3) National Waterway 1 project

Why in news ?
Bihar Chief Minister has raised concern about siltation problem in National Waterway 1.

National Waterway 1

National Waterway 1 (NW-1) or Ganga-Bhagirathi-Hooghly river system is the longest waterway in India on the River Ganga, between Haldia and Varanasi.

The waterway passes through 4 states named West Bengal, Jharkhand, Bihar and Uttar Pradesh and serves in saveral major cities including Haldia, Howrah, Kolkata, Bhagalpur, Munger, Patna, Ghazipur, Varanasi and Allahabad.

High siltation, fluctation in water velocity and water level, spiting of main channel in different places and existance of low bridges are some of the major challenges in the way of project success.

4) Key monetary tools

Why in news ?
The central bank (RBI) has recently increased its policy repo rate by 25 basis points to 6.25%, for the first time in last four years.

Repo rate

Repo rate or benchmark rate or policy rate is the rate at which the central bank lends short term loans to banks. This rate is increased by RBI to curb liquidity in the market and decreased by RBI to increase the liquidity in market. In this process banks sells government securities to RBI in order to raise money with an agreement to buy them bank on a fixed rate(Repo rate).

Reserve repo rate

Reserve repo rate is the rate at which the central bank (RBI) borrows money from banks for short term, RBI's borrowing from the bank is a policy action that is used to suck money from the market in order to curb liquidity. An increase in Reserve repo rate means that the banks will lend more money to RBI hence less money to be lend to people and this will curbs liquidity in market.

MSF - Marginal Standing facility

MSF - Marginal Standing facility is an emergency tool for banks which is used to get short term loans from the central bank in order to tackle cash shortage like emergency situations against approved government securities. Marginal Standing facility (MSF) is always higher than the repo rate.

Bank Rate

Bank Rate is the rate at which banks borrows money from the central bank for long term loans, without selling or buying any securities. Bank Rate is not used by the central bank for policy formulation. The bank rate is 100 basis points above the repo rate, similarly the repo rate is 100 basis points above the reverse repo rate. This isn?t a rule, but is generally the case.

Cash Reserve Ratio (CRR)

As per RBI guidelines, all banks have to hold some portion of deposits with them in cash, this is called CRR. This deposit can not be used by banks for lending or any other purpose. RBI uses this tool to regulate liquidity in market, with a higher CRR banks will have less money to lend that will curb liquidity, on the other hand when RBI feels to release more money in market to boost economic activities it decreases CRR so that banks will have more money to lend in market.

Statutory Liquidity Ratio (SLR)

As per RBI guidelines, all banks are also required to hold a fixed amount of their deposits in government securities with the RBI, this is called Statutory Liquidity Ratio(SLR). Unlike CRR, banks can earn return on these investments.

Test Your preparation with: 24 Jun, 2018 | Current Affairs multiple choice questions

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