Monetary Policy
Why in news?
- RBI Governor Shaktikanta Das said that the Monetary Policy Committee’s decision to maintain status quo on policy rates for the second time in a row, must not be viewed as a pointer for future action.
- The RBI Governor informed that a spike in onion prices last year, was alone responsible for a hike of 328 basis points in food inflation.
Key facts:
- RBI’s Monetary Policy Committee will continue to remain proactive as it was last year when the repo rate was reduced by 135 basis points.
- On the policy transmission front, the RBI Governor said, the transmission has remained sizeable so far.
- In order to ensure availability of adequate liquidity in the banking system and also to encourage banks to lend more to productive sectors of the economy.
- The RBI Governor announced that it will soon start conducting long-term repos of one-year and three-year tenors of appropriate sizes for up to a total amount of 1,00,000 crore rupees.
- The Governor said, this measure will assure banks about the availability of durable liquidity at a reasonable cost relative to prevailing market conditions.
- RBI has announced that banks will now be allowed to deduct the equivalent of incremental credit disbursed by them as retail loans from their net demand and time for maintenance of cash reserve ratio.
- This exemption will be available for incremental credit extended up to the fortnight ending 31st July this year and only be valid for retail loans offered for automobiles, residential housing and loans to micro, small and medium enterprises.
Namaste Orchha
Why in news?
- A three-day multi-cultural festival aims to promote tourism in the heritage city of Orchha, Madhya Pradesh.
- ‘Namaste Orchha’, organised by the Madhya Pradesh government, will celebrate the cultural diversity, natural beauty and the architectural heritage of the town.
About:
- The festival, which begins on March 6, will showcase music, dance, heritage walks, local cuisine, arts and handicrafts.
- The first day of the festival will be held at Jahangir Mahal, built in 17th Century by the then ruler Vir Singh Deo in honour of the Mughal emperor Jahangir.
- Mumbai-based Clinton Cerejo, known for composing ‘Madari’ on Coke Studio, will collaborate with Madhya Pradesh’s local folk and classical artistes.
- Through this collaboration we aim to empower the local artists and bring them on the global map.
India, African countries resolve to fight terror
Why In news?
- India and several African countries on pledged to deepen cooperation to combat the growing threat of terrorism and preserve maritime security by sharing information, intelligence and surveillance
Key highlights:
- The Declaration also called for strengthening the UN Counter-Terrorism mechanisms and to ensure strict compliance with the UN Security Council sanctions regime on terrorism.
- Recognising the importance of the oceans and seas to the livelihoods of our peoples and that maritime security is a pre-requisite for the development of blue or ocean economy.
- The dialogue was attended by 12 Defence Ministers and 38 countries were represented at the conclave. “India will continue to intensify and deepen engagement.
- It will be a partnership guided by your priorities. More specifically on the defence cooperation, these include strengthening cooperation and mutual capabilities in combating terrorism and extremism, keeping our cyberspace safe and secure and supporting the UN in advancing and keeping peace.