Current Affairs : June 16, 2011
Short term lending and borrowing rates hiked by 25 basis points by the RBI
- The RBI raised the RR (Repo Rate) and the RRR (Reverse Repo Rate) by 25 basis points
- This was to combat inflation
- RR raised to 7.5% and RRR raised to 6.5%
- 10th time since March last year, RBI has hiked the key Interest Rates to combat inflation
- With this rise in RR, the interest rate for the additional lending facility of the RBI under the marginal standing facility has gone up by 25 basis points, to 8.5 per cent.
- Other rates and ratios unchanged in its mid-quarter policy review
- RBI’s monetary policy standpoint remains tightly anti inflationary
- Pointing to the fact that the inflation is at an itchy level, the RBI held the present wholesale price figures belittle the pressure because domestic fuel prices have yet to reflect global crude oil prices
- RR = Rate at which RBI lends to banks
- RRR = Rate at which RBI borrows from banks
Germany ATP : Bopanna-Qureshi win
- Top seeds Rohan Bopanna and Aisam-ul-haq Qureshi won their first ATP title of the season
- The defeated Robin Haase and Milos Raonic by 7-6 (8) 3-6 11-9 in the Final clash of the Gerry Weber Open in Halle, Germany
PO Savings a/c to be taxed from this year
- Post Office savings accounts will be taxed from this financial year
- The CBDT (Central Board of Direct Taxes) has beforehand come up with a notification in this view.
- The notification given to all tax collection ranges across country for its due implementation
- Taxpayers who invest in the PO saving a/c schemes, will now have to show the interest earned on this scheme while filing their income tax returns
- However, the interest up to Rs 3,500 in case of a single account and Rs 7,000 in case of a joint account will be exempted
- The present interest rates for PO savings deposits are 3.5 % per annum.
Agreement for 6 development projects b/w India and Japan
- Agreement signed 6 development projects
- In the fields of:-
- Metro Rail Project in Bangalore
- Tokyo will provide Rs 7,361 Crore soft loan.
- Agreement to support India’s quest for energy and its efforts to improve infrastructure necessary for rapid growth in economy.
- It will also assist in accelerating the stretch of novel and renewable energy and energy conservation projects using Japanese experience.
- Soft Loan: A soft loan is a loan with a below-market rate of interest. This is also known as soft financing.
India assures $10 mn for South Sudan development
- Grant of $10 million towards socio-economic development of South Sudan.
- Development in all sectors and to take core sectors on a priority basis such as education, rural development, health and agriculture.
Lift 20 Lakh tons of food grains under OMSS : Centre asks State Governments
- Centre asks State Governments to lift 20,00,000 tons of Rice and Wheat under OMSS (Open Market Sale Scheme)
- This is in order to keep the prices under control
- To lift the allocated quantity of food grains from FCI go-downs on priority basis and to make arrangements to distribute it to retail consumer.
- Rates for allocation under OMSS are below the economic cost incurred by the Food Corporation of India.
- States can use their own cooperatives and SHGs (Self-Help Group) for distribution in order to pass the benefits of the scheme to the deserving.
- As per latest FCI report, the Government had 65 Million tons of wheat and rice till the end of last month in its go-downs across the country.
- Minister of State for Consumer Affairs, Food and Public Distribution : Prof. K V Thomas
2 Loan agreements signed by India with ADB
- India and ADB (Asian Development Bank) signed two loan agreements
- Under this ADB will give $ 432 million for development of highways in MP and improving Power sector in Bihar.
- Of this amount, $300 million to MP to assist it in up gradation of about 1,000 KM highways in the Eastern and West Central parts while $132 million to Bihar to improve its power sector.
- The project will help uphold elevated economic growth and lessen poverty in MP
- The loan provided to Bihar will assist it improve its Power transmission and distribution system and lessen technical and commercial losses. It will also assist the state in attracting investment and tapping its Economic potential.
- The bank also probable to route an urban development loan for Bihar in 2011 and the second Power Improvement Project in 2014.