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·         The reserve Bank of India (RBI) in its every bimonthly monetary policy committee (MPC) Meeting has held benchmark loan costs unaltered for the fifth time in succession.

·         The key repo rate has been stopped for five sequential surveys at 6.5%.

What are the Vital Features of the MPC Meeting?

Policy Rates:

·         policy Repo Rate: 6.5%

·         Repo rate is the rate at which the reserve bank of India (RBI) loans cash to business banks in case of any deficiency of assets. Here, the reserve bank buys the security.

Standing deposit facility (SDF): 6.25 %

·         The SDF is a liquidity window through which the RBI will give banks a choice to stop overabundance liquidity with it.

·         It is not quite the same as the converse repo office in that it doesn't expect banks to give guarantee while stopping reserves.

Negligible Standing Office Rate: 6.75%

·         MSF is a window for booked banks to get for the time being from the RBI in a crisis circumstance when interbank liquidity evaporates totally.

·         Under interbank loaning, banks loan assets to each other for a predetermined term.

Cash reserve ratio (CRR): 4.50%

·         Under CRR, the business banks need to hold a specific least measure of store (NDTL) as stores with the national bank.

Statutory liquidity ratio (SLR): 18.00%

·         SLR is the base level of stores that a business bank needs to keep up with as fluid money, gold or different protections.


Development Projection Raised:

·         The Gross domestic product development projection for 2023-24 was raised to 7% from before 6.5%, floated by a powerful 7.6% development in the second quarter of 2023-24 FY.

Expansion Estimate:

·         The consumer price index (CPI) based expansion figure for the financial year 2023-24 has been held at 5.4%.

What is Different Drives Taken by the RBI?

Climbed in UPI Cutoff for Wellbeing and Training:

·         RBI has climbed as far as possible for Wellbeing and Schooling exchanges from Rs 1 lakh to Rs 5 lakh for every exchange to yield significant functional benefits for both medical services foundations and patients, as indicated by industry specialists.

Repeating e-Installment Commands:

·         The RBI has extended the cutoff on repeating e-installment orders for charge card, protection premia installments, and shared reserve speculations to Rs 1 lakh from Rs 15,000 takes into account more significant occasional exchanges.

Administrative System for Web-Collection:

·         RBI wants to lay out an administrative structure for web-collection of credit items to further develop client centricity and straightforwardness in computerized loaning.

Organizations with Fintechs:

·         The RBI has looked to get a superior grasp on the developing rate of banks and non-banking finance organizations (NBFCs) joining forces with Fintechs by proposing the making of a Fintech Storehouse by April 2024.

·         FinTechs would be urged to give important data deliberately to this Archive.


·         Expansion: It alludes to the supported expansion in the general value level of labor and products in an economy throughout some undefined time frame, prompting a lessening in the buying influence of cash.

·         Title Expansion: It is the complete expansion for the period, including a crate of wares.

The food and fuel expansion structure one of the parts of title expansion in India.

·         Center Expansion: It rejects unpredictable products from the bin of wares following Title Expansion. These unstable wares mostly contain food and drinks (counting vegetables) and fuel and light (raw petroleum).

Center expansion = Title expansion - (Food and Fuel) expansion.

·         Expansion focusing on: It is a money related strategy structure pointed toward keeping a particular objective reach for expansion.

·         The Urjit Patel Panel suggested CPI (Customer Value File) over WPI (Discount Value List) as an action for expansion focusing on.

·         The ongoing expansion target likewise lines up with the panel's suggestion to lay out an objective expansion pace of 4%, joined by an OK scope of deviation of +/ - 2%.

·         The central government, in meeting with the RBI, sets an expansion target, and an upper and lower resilience level for retail expansion.

·         Liquidity alludes to the straightforwardness with which a resource or security can be immediately traded in the market without altogether influencing its cost.

·         It implies the accessibility of money or fluid resources for meet monetary commitments or make speculations. In more straightforward terms, liquidity is to get your cash at whatever point you want it.


·         The Director General of Foreign Trade (DGFT) has issued a notification reversing the "Free" to "Prohibited" status of the onion export policy until March 2024.

·         Onion prices have significantly increased as a result of the current supply shortage brought on by the anticipated lower kharif output in 2023 and the early depletion of stocks for the rabi season in 2022-23.

·         The public authority has likewise reexamined as far as possible for wheat, as far as possible has been divided to 1,000 tons for wholesalers, and for retailers to 5 tons.

Why has the Public authority Prohibited Product of Onion Cost?

Control of prices:

·         The government wants to keep domestic market prices from rising or falling by limiting onion exports.

·         To battle spiraling costs, the Middle had forced a Base Commodity Cost of USD 800 for every ton on onions in October 2023. In August, the government imposed an export duty of forty percent on onions.

·         An export ban helps to stabilize the price of onions, making them more affordable for local consumers. Onions have a long history of experiencing significant price volatility.

Getting Rid of Scarcity:

·         A lack of onions in the country can be caused by things like bad weather, less production, or more demand.

·         The government ensures that the available supply is used to meet domestic demands first by prohibiting exports.

Food safety:

·         Onions are a staple in Indian cooking, and any shortage can influence food security. The government ensures that the population has access to this necessary food item without experiencing shortages or unaffordable prices by reducing exports.

What are the Vital Realities About Onion?

·         Onion is a significant green wares become overall for their culinary purposes and restorative qualities.

·         After China, India is the second largest onion producer.

·         The major onion-producing states are Maharashtra, Karnataka, Orissa, Uttar Pradesh, Gujarat, Andhra Pradesh, and Tamil Nadu.

·         In 2021 and 2022, Madhya Pradesh takes second place with a share of 15.16 percent, followed by Maharashtra with a share of 42.53 percent (3rd Advance Estimate).

Why has the government restricted wheat stocks?

·         The revised stock limits are meant to stop organizations involved in wheat stocking from hoarding. The government intends to discourage artificial scarcity and ensure a fair distribution of wheat among various stakeholders by imposing stricter limits.

·         The imbalance between supply and demand that results from excessive hoarding can have a negative impact on consumers and cause price fluctuations.

·         The availability of sufficient quantities on the market to meet the nation's food requirements is ensured by regulating wheat stocks. By preventing food shortages and ensuring that consumers have access to this essential food, it contributes to food security.


What is the current situation regarding the nationwide distribution of wheat?

·         After China, India is the world's second-largest wheat producer. However, it only contributes less than 1% of global wheat trade. It keeps a lot of it to give poor people free food.

·         Uttar Pradesh, Punjab, Haryana, Madhya Pradesh, Rajasthan, Bihar, and Gujarat are India's major wheat-growing states.

·         Major Destinations for Export (2022-23): Bangladesh, Indonesia, Korea Rep.


·         The term "anarcho-capitalism" has recently gained attention, particularly with the recent electoral victory of Javier Milei, a self-proclaimed anarcho-capitalist, in the presidential race in Argentina.

·         This political philosophy advocates for the abolition of the state, proposing that private companies manage law and order in a free market.

What is Anarcho-Capitalism?


·         Anarcho-capitalism, political philosophy and political-economic theory that advocates the voluntary exchange of goods and services in a society broadly regulated by the market rather than by the state.

·         The term anarcho-capitalism was coined by Murray Rothbard, a leading figure in the American libertarian movement from the 1950s.

·         Anarcho-capitalists assert that private companies in a free market can efficiently provide policing and legal services.

·         The philosophy contends that similar to private sectors offering superior products and services, private policing and legal systems can outperform state-monopolized counterparts.

·         In an anarcho-capitalist society, individuals pay private police and courts for protection and dispute resolution.

·         Private companies, driven by customer patronage, are argued to be more accountable, as dissatisfied customers can switch to competing services.

·         Anarcho-capitalists advocate for competitive markets, asserting that they guarantee top-tier and cost-effective police and legal services. This contrasts with state-funded systems, providing customers the freedom to select services aligned with their preferences and needs.


·         Multiple private firms offering police and judiciary services in a single region may lead to armed conflicts and chaos.

·         Skepticism arises about a market-based system favouring the wealthy, allowing them to escape justice by paying more to private firms.

·         Apprehensions exist that a profit-driven system could marginalize the poor, limiting their access to justice.

·         Critics worry that without a centralized authority, private firms may not be accountable to the broader public, influencing justice based on financial interests, and potentially compromising the integrity of justice.

·         The absence of a centralized authority may increase the risk of vigilantism, where individuals or groups take the law into their own hands.

·         Anarcho-capitalism could worsen societal inequalities, providing better legal protection for those who can afford premium services.


·         A significant step toward strengthening Uttarakhand's power infrastructure is the agreement between the Indian government and the Asian Development Bank (ADB) for a loan of $200 million.

·         The project will introduce a modernized underground cable system that spans 537 kilometers, as well as substations and power lines, with the goal of improving quality, efficiency, and reliability. It will also ensure a smoother integration of renewable energy and meet rising electricity demand.

·         The Asian Development Bank (ADB) is a regional development bank that was established in 1966 with the goal of supporting social and economic growth in Asia and the Pacific.

·         There are 68 members; 49 are from inside Asia and the Pacific and 19 outside. India is an establishing part. Manila, Philippines, is home to ADB's headquarters.