Questions of the Day :-
Which of the following states does not have a ‘Legislative Council’?
2)Consider the following statements with respect to ‘Outer Space Treaty’
- The treaty bans military activities within space and weaponization of space.
2. India is party to the treaty.
Select the correct statements
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2
3)‘Global Talent Competitiveness Index’ is compiled by
a) Economist Intelligence Unit
c) World Economic Forum
d) London School of Economics
1)As part of RBI bailout, SBI to pick up 49% in Yes Bank:– The Reserve Bank of India (RBI) on Friday announced a draft reconstruction scheme for the beleaguered Yes Bank, aimed at protecting depositors’ funds while bringing in the State Bank of India as an investor. For employees of the bank, service conditions, including remuneration, will remain the same, at least for one year.
This does not, however, include key managerial personnel, on whom the board can take a call.
Reasons for Yes Bank Crisis:-
1)The financial position of Yes Bank has undergone a steady decline over the last few years because of its inability to raise capital to address potential loan losses and resultant downgrades, triggering invocation of bond covenants by investors, and withdrawal of deposits.
2)Governance Issues:- The bank has also experienced serious governance issues and practices in recent years which have led to a steady decline of the bank.
4)No Market-led revival in sight
5)The bank was facing regular outflow of liquidity. It means that the bank was witnessing withdrawal of deposits from customers
2)Supreme Court upholds 2018 order on land acquisition:– A Constitution Bench of the Supreme Court on Friday held that land acquisition proceedings under the 1894 Act will not be deemed to have lapsed under Section 24(2) of the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement
A five Judge Bench, led by Justice Arun Mishra, held that landowners, who had refused to accept compensation
or who sought reference for higher compensation, cannot claim that the acquisition proceedings had
lapsed under Section 24(2) of the 2013 Act
3)Want N95 mask? Get doctor’s prescription:-In a new mandate to curb unnecessary demand, the Maharashtra Food and Drug Administration on Friday said chemists cannot sell N95 masks without a doctor’s prescription. The FDA also warned that serious action would be taken against those who are found selling masks at high prices or hoarding them.
“Personal Protective Equipment (PPE) kits and N95 masks are being sold at very high prices in medical shops. The State has received many complaints about the same.
It has also been found that many are making bulk purchases and hording PPE kits and N95 masks.
4)Delimitation panel for J&K, northeastern States set up:- The exercise to readjust the division of each State and the UTs into territorial constituencies for the purpose of elections to the Lok Sabha and to the State Legislative Assemblies on the basis of the 2001 Census figures was last completed on November 26, 2008.
However, this exercise was postponed in Assam, Arunachal Pradesh, Manipur and Nagaland on apprehension of threat to peace and public order.
The Delimitation Commission in India is a powerful body, whose orders have the force of law and cannot be called in question before any court.
5)Monetary policy can’t combat the COVID-19 impact:-
The huge 50 basis points cut in rates by the U.S. Federal Reserve on Tuesday to lift economic sentiment hit by COVID19 has disrupted central banking worldwide.
Central banks of Australia and Malaysia have cut rates already while others such as the Bank of Japan, Bank of England and the European Central Bank are contemplating joining the caravan.
The legal framework in India after the setting up of the Monetary Policy Committee (MPC) is such that the RBI cannot unilaterally adjust rates.
See If the Interest Rates decrease by central bank then Other banks too decrease the rate of interest for loans, Thus People can take more Loan, More Loan means more disposable income in the hands of people, More Disposable income means more spending, more spending means more consumption, more consumption means more demand, more demand means more Production and More Production means more Growth.
But it’s doubtful if any of these measures can address the hit to economic growth. The virus has undoubtedly surfaced at a very wrong time for the Indian economy which is showing hesitant signs of a return to growth.
The bigger problem could be from a fall in exports, which accounts for 20% of the GDP.
6)India joins Indian Ocean Commission as observer:- India has been approved as an observer state for a five nation
grouping in the Western Indian Ocean, which includes Madagascar, Comoros, Seychelles, Mauritius and French Reunion.
India will join China, which was made an observer in 2016, as well as the “International Organisation of the Francophonie” or the 54-nation French-speaking collective, the European Union (EU) and Malta, which
were all admitted in 2017.
The decision to join the IOC marks a part of the government’s push for greater salience in the whole Indian
Ocean Region (IOR), including what is called the Western or African Indian
About IOC:- The Indian Ocean Commission (French: Commission de l’Océan Indien, COI) is an intergovernmental organization that was created in 1982 at Port Louis, Mauritius and institutionalized in 1984 by the Victoria Agreement in Seychelles. The COI is composed of five African Indian Ocean nations: Comoros, Madagascar, Mauritius, Réunion (an overseas region of France), and Seychelles.
The Forex Reserves (‘foreign exchange reserves’) of an economy is its ‘foreign currency assets’ added with its gold reserves, SDRs (Special Drawing Rights) and Reserve Tranche in the IMF.
Reserve tranche is a portion of the required quota of currency each member country must provide to the International Monetary Fund (IMF) that can be utilized for its own purposes.
Special Drawing Rights:-The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves
The SDR is neither a currency nor a claim on the IMF.
SDR has a basket of Currencies.This basket Includes five currencies—the U.S. dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.