IAS Target

All India Radio News - 6/12/2020

02 Dec 2020

Category : Daily Current Affairs

    The Indian Navy has recently undertaken a Passage Exercise (PASSEX) with the Russian Navy in the Eastern Indian Ocean Region on 4 and 5 December 2020. The exercise includes IN (Indian Navy) indigenously built guided-missile frigate ‘Shivalik’ and anti-submarine corvette ‘Kadmatta’ and some integral helicopters. While RuFN (Russian Federation Navy) includes guided-missile cruiser ‘Varyag’, medium ocean tanker ‘Pechenga’ and large anti-submarine ship ‘AdmiraPanteleyev’.

    The goals of the exercise were-

    • To improve understanding,
    • To enhance interoperability,
    • To imbibe best practices between both the navies and would include advanced surface and helicopter operations, seamanship exercises, anti-submarine warfare exercises, and weapon firings.
    PASSEX conducted in the Eastern Ocean Region represents the long-term strategic partnership b/w India & Russia and particularly defence collaboration in the maritime domain. This exercise highlights the strong ties of friendship, and it would be the next move towards strengthening Indo-Russian defence relations. Both the navies have created a healthy bond through regular exercises include INDRA Navy conducted twice-yearly, with the last edition held in the Northern Indian Ocean region on 4 and 5 September 2020.

    What is PASSEX?

    PASSEX is also known as a ‘Passing Exercise’, is an exercise conducted between two navies to ensure that the navies can cooperate and communicate in times of war. In the new era, navies within a close union involve digital and electronic cooperation. Some exercises b/w the US and French navies have involved carrier-based fighter-bombers “touching down” on each other’s carrier to ensure interoperability.
    The reason behind to conduct PASSEX:
    • The official and primary reason for a PASSEX is to practice cooperation
    • An unofficial reason is to “show the flag” because it represents the power of a country
    • Some diplomatic and political grounds

    The RBI Monetary Policy Committee (MPC) has voted collectively to leave the policy repo rate unchanged at 4%. Bank Rate and Marginal Standing Facility will also remain unchanged at 4.25%, while the reverse repo rate will also remain unchanged at 3.35%. Pointing to this, the RBI governor indicated, the accommodative stance of monetary policy will continue as long as required, to restore growth and reduce the effect of the Covid-19 pandemic, while ensuring inflation remains within the target, going ahead.

    The Governor also declared a set of additional measures with the goal of-
    • Enhancing liquidity support and reviving the economy
    • Strengthening regularly supervision and deepening financial markets
    • Upgrading payment system services and facilitates external trade
    • Conserving capital among NBFCs and banks

    Targeted Long Term Repo Operations declared on Oct. 9, 2020, will be stretched to cover other emphasized sections in line with Credit Guarantee available under Emergency Credit Line Guarantee Scheme 2.0 of the Govt. This will push banks to prolong credit support to emphasized sectors at a lesser cost. To develop money market participation of RRBs (Regional Rural Banks) & facilitate better liquidity management, Regional Rural Banks will be allowed to enter MSF (Marginal Standing Facility) and LAF (Liquidity Adjustment Facility) of RBI and notice money market too. Current guidelines on Credit Default Swap will be reconsidered, to facilitate the development of credit derivatives markets and a market for corporate bonds particularly for lower-rated issuers. The Measure of RBI will go a long way in developing corporate bond derivatives and markets in India said the RBI Governor.
    To deepen financial literacy and financial inclusion across India, the access of RBI’s hubs for financial literacy is going to be extended from a hundred blocks at present to each block in India by March 2024. To enhance export competitiveness and external trade, extra powers will be allotted to authorized dealer banks. RTGS (real-time gross settlement) will be made available 24x7 in the upcoming days to diminish settlement and default threat to the system, by facilitating settlement of NETC, RuPay, IMPS, and UPI transaction on all days of the week. So, this will make the payment ecosystem more advanced. E-mandates for recurring transactions through cards and limits for contactless card transactions are to be increased from 2000 Rs. to 5000 Rs, from 1, January 2021. This will aid to boost the adoption of digital payments securely and safely.

Posted by : IAS Target from AIR websites