KSG Podcast - What is the RBI’s MPC? | best daily editorial analysis for upsc
https://www.youtube.com/watch?v=C5FUizRikow&list=PLCUwtp5IghZmJBi1h7xiAhsORKmmumVsR&index=43
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https://www.youtube.com/watch?v=C5FUizRikow&list=PLCUwtp5IghZmJBi1h7xiAhsORKmmumVsR&index=43
#UPSCOnlineClasses #OnlineClassses #IASOnlineclasses
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KSG Podcast - What is the RBI’s MPC? | best daily editorial analysis for upsc
#upsc #RBI #MonetaryPolicyCommittee #interestrate #RBImonetarypolicy #Reporate #RBIAct1934 #MPC #latestnews #currentaffairs #prelims2022 #editorialanalysis #monetarypolicy #bank #economy
Topics Covered -
Reserve Bank of India’s (RBI’s) Monetary Policy Committee…
Topics Covered -
Reserve Bank of India’s (RBI’s) Monetary Policy Committee…
Today's Headlines - 03 August 2023
UIDAI is using AI to tackle payment frauds
GS Paper - 3 (ITC)
As more frauds related to the Aadhaar-enabled Payment System (AePS) come to the fore, the Unique Identification Authority of India (UIDAI), has turned to artificial intelligence-based systems in a bid to limit the cases — this includes developing technologies around fingerprinting and facial recognition. The UIDAI has rolled out an in-house Artificial Intelligence/Machine Learning technology-based Finger Minutiae Record – Finger Image Record (FMR-FIR) modality which is able to check the liveness of a fingerprint to detect the use of cloned fingerprint during the authentication process.
How does the Aadhaar fingerprint technology work?
The technology was rolled out in February this year and uses a combination of both finger minutiae and finger image to check the liveness of the fingerprint captured.
The measure was implemented after instances of people creating fake fingerprints using silicone to syphon off money from unsuspecting individuals’ bank accounts were reported.
The problem gets compounded on account of the fact that a large part of the AePS user base is in rural areas.
In effect, the AI-based technology is able to identify whether the fingerprint is from a real, or ‘live’ finger, or a cloned one.
Payment frauds on the rise
According to the Home Ministry, in the financial year 2020-21, 2.62 lakhs financial crimes, such as money laundering, bribery, corruption and different kinds of frauds, were reported. The number jumped to 6.94 lakhs in 2022, a report, released by the Standing Committee on Finance — headed by BJP MP Jayant Sinha — said.
Citing data it received from the supervised entities of the Reserve Bank of India (RBI), the committee noted that payment-related frauds are on the rise in India – In FY21, the volume of such frauds was a little over 700,000, which by FY23, increased to close to 20 million.
According to the information submitted to it by the Indian Cyber Crime Coordination Centre (I4C), in the year 2022, out of 6,94,424 complaints related to financial frauds only in 2.6 per cent of cases an FIR was registered.
The details shared with Parliament revealed that between November 2021 and March 2023, more than 2,000 complaints related to AePS were received by the offices of the RBI’s ombudsman.
#upsc #news #headline #UIDAI #payment #frauds #ITC #adhaar #system #FMR #FIR #machine #work #syphon #rural #areas #RBI #reserve #bank #india #ombudsman #cases #financial #bribery #corruption #silicone #cloned #I4C #indian #cyber #crime #coordination #tackle
UIDAI is using AI to tackle payment frauds
GS Paper - 3 (ITC)
As more frauds related to the Aadhaar-enabled Payment System (AePS) come to the fore, the Unique Identification Authority of India (UIDAI), has turned to artificial intelligence-based systems in a bid to limit the cases — this includes developing technologies around fingerprinting and facial recognition. The UIDAI has rolled out an in-house Artificial Intelligence/Machine Learning technology-based Finger Minutiae Record – Finger Image Record (FMR-FIR) modality which is able to check the liveness of a fingerprint to detect the use of cloned fingerprint during the authentication process.
How does the Aadhaar fingerprint technology work?
The technology was rolled out in February this year and uses a combination of both finger minutiae and finger image to check the liveness of the fingerprint captured.
The measure was implemented after instances of people creating fake fingerprints using silicone to syphon off money from unsuspecting individuals’ bank accounts were reported.
The problem gets compounded on account of the fact that a large part of the AePS user base is in rural areas.
In effect, the AI-based technology is able to identify whether the fingerprint is from a real, or ‘live’ finger, or a cloned one.
Payment frauds on the rise
According to the Home Ministry, in the financial year 2020-21, 2.62 lakhs financial crimes, such as money laundering, bribery, corruption and different kinds of frauds, were reported. The number jumped to 6.94 lakhs in 2022, a report, released by the Standing Committee on Finance — headed by BJP MP Jayant Sinha — said.
Citing data it received from the supervised entities of the Reserve Bank of India (RBI), the committee noted that payment-related frauds are on the rise in India – In FY21, the volume of such frauds was a little over 700,000, which by FY23, increased to close to 20 million.
According to the information submitted to it by the Indian Cyber Crime Coordination Centre (I4C), in the year 2022, out of 6,94,424 complaints related to financial frauds only in 2.6 per cent of cases an FIR was registered.
The details shared with Parliament revealed that between November 2021 and March 2023, more than 2,000 complaints related to AePS were received by the offices of the RBI’s ombudsman.
#upsc #news #headline #UIDAI #payment #frauds #ITC #adhaar #system #FMR #FIR #machine #work #syphon #rural #areas #RBI #reserve #bank #india #ombudsman #cases #financial #bribery #corruption #silicone #cloned #I4C #indian #cyber #crime #coordination #tackle
Today's Headlines - 11 August 2023
MPC has kept interest rate unchanged
GS Paper - 3 (Economy)
Interest rates in the Indian financial system will remain unchanged following the decision of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) to keep the main policy instrument – the Repo rate – unchanged at 6.50 per cent on 10 August 2023. Equated monthly instalments (EMIs) of home, vehicle and other loans are expected to remain steady for the time being.
Why is the RBI in pause mode?
The pause in the Repo rate – the rate at which RBI lends money to banks to meet their short-term funding needs – on 10 August 2023 is for the third time since the RBI started hiking the Repo rate in May 2022 to check inflation.
In April policy, the MPC members, in a surprise move, had unanimously decided to pause the rate hike cycle.
Monetary policy transmission is still underway after the RBI slashed the Repo rate by 250 basis points since May 2022 and headline inflation is expected to remain above the five per cent level and even touch even 6.2 per cent in the second quarter of this year.
While the vegetable price shock may reverse quickly, possible El Nino weather conditions along with global food prices need to be watched closely against the backdrop of a skewed southwest monsoon so far.
Why RBI has hiked inflation projection and its impact
On 10 August 2023, the RBI revised its FY2024 inflation projection to 5.4 per cent from 5.1 per cent announced in June.
It said CPI inflation is expected to be at 6.2 per cent in the second quarter, 5.7 per cent in the third quarter and 5.2 per cent in the fourth quarter of FY2023-24.
This means the high policy rates will remain high for long and, therefore, a rate cut can be expected only in Q1 FY25.
The spike in tomato prices and the rise in cereal and pulses contributed to inflation. However, vegetable prices may see a significant correction.
Retail inflation (measured using the consumer prices index or CPI) had declined to an 18-month low of 4.3 per cent in May from 5.7 per cent in March, remaining under the RBI’s comfort zone of 2-6 per cent for two consecutive months.
However, inflation has picked up since then and it’s likely to rise in the range of 6-6.8 per cent in July from 4.81 per cent in June. The RBI is mandated to keep CPI at 4 per cent with a band of +/- 2 per cent.
Why has RBI retained the stance of withdrawal of accommodation?
The RBI has focused on its stance of ‘withdrawal of accommodation’ until all risks to inflation dissipate. An accommodative stance means the central bank is prepared to expand the money supply to boost economic growth.
Withdrawal of accommodation will mean reducing the money supply in the system which will rein in inflation further.
#upsc #news #headline #MPC #rate #economy #indian #financial #system #policy #EMI #RBI #bank #hiked #CPI #zone #withdrawal #level #monetary #committee #instalments #mode
MPC has kept interest rate unchanged
GS Paper - 3 (Economy)
Interest rates in the Indian financial system will remain unchanged following the decision of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) to keep the main policy instrument – the Repo rate – unchanged at 6.50 per cent on 10 August 2023. Equated monthly instalments (EMIs) of home, vehicle and other loans are expected to remain steady for the time being.
Why is the RBI in pause mode?
The pause in the Repo rate – the rate at which RBI lends money to banks to meet their short-term funding needs – on 10 August 2023 is for the third time since the RBI started hiking the Repo rate in May 2022 to check inflation.
In April policy, the MPC members, in a surprise move, had unanimously decided to pause the rate hike cycle.
Monetary policy transmission is still underway after the RBI slashed the Repo rate by 250 basis points since May 2022 and headline inflation is expected to remain above the five per cent level and even touch even 6.2 per cent in the second quarter of this year.
While the vegetable price shock may reverse quickly, possible El Nino weather conditions along with global food prices need to be watched closely against the backdrop of a skewed southwest monsoon so far.
Why RBI has hiked inflation projection and its impact
On 10 August 2023, the RBI revised its FY2024 inflation projection to 5.4 per cent from 5.1 per cent announced in June.
It said CPI inflation is expected to be at 6.2 per cent in the second quarter, 5.7 per cent in the third quarter and 5.2 per cent in the fourth quarter of FY2023-24.
This means the high policy rates will remain high for long and, therefore, a rate cut can be expected only in Q1 FY25.
The spike in tomato prices and the rise in cereal and pulses contributed to inflation. However, vegetable prices may see a significant correction.
Retail inflation (measured using the consumer prices index or CPI) had declined to an 18-month low of 4.3 per cent in May from 5.7 per cent in March, remaining under the RBI’s comfort zone of 2-6 per cent for two consecutive months.
However, inflation has picked up since then and it’s likely to rise in the range of 6-6.8 per cent in July from 4.81 per cent in June. The RBI is mandated to keep CPI at 4 per cent with a band of +/- 2 per cent.
Why has RBI retained the stance of withdrawal of accommodation?
The RBI has focused on its stance of ‘withdrawal of accommodation’ until all risks to inflation dissipate. An accommodative stance means the central bank is prepared to expand the money supply to boost economic growth.
Withdrawal of accommodation will mean reducing the money supply in the system which will rein in inflation further.
#upsc #news #headline #MPC #rate #economy #indian #financial #system #policy #EMI #RBI #bank #hiked #CPI #zone #withdrawal #level #monetary #committee #instalments #mode
The 640-page NCF, an update on the draft released in April, was developed by a 13-member steering committee led by former ISRO chief K Kasturirangan.
#upsc #news #headline #national #curriculim #NCF #education #indian #school #vision #national #policy #interdisciplinarity #proposals #preparatory #secondary #grades #middlestage #nativetoindia #mathematics #arteducation #physical #enviromental #subjects #period #communication #writingskills #local #global #twolanguages #mandatory #history #journalism #semestersystem #bank #comprehensive #annualsystem #NCERT #development #academicsession #NEP #NCF #kKasturirangan #ISRO #commerce #science #humanities #english #sanskrit
#upsc #news #headline #national #curriculim #NCF #education #indian #school #vision #national #policy #interdisciplinarity #proposals #preparatory #secondary #grades #middlestage #nativetoindia #mathematics #arteducation #physical #enviromental #subjects #period #communication #writingskills #local #global #twolanguages #mandatory #history #journalism #semestersystem #bank #comprehensive #annualsystem #NCERT #development #academicsession #NEP #NCF #kKasturirangan #ISRO #commerce #science #humanities #english #sanskrit
International Fund for Agricultural Development (IFAD)
The International Fund for Agricultural Development (IFAD), a specialised agency of the United Nations, was one of the major outcomes of the 1974 World Food Conference in Rome.
The conference was organised by the United Nations in response to the food crises of the early 1970s, when global food shortages were causing widespread famine and malnutrition.
Global Environment Facility (GEF)
Established in 1991 on the eve of the 1992 Rio Summit, the Global Environment Facility (GEF) provides grant funds to developing countries for projects and activities that aim to protect the global environment.
This is to cover areas like biodiversity, climate change, international waters, ozone depletion, land degradation, primarily desertification, deforestation and persistent organic pollutants.
African Development Bank (AfDB)
The African Development Bank Group (AfDB) comprises (i) the African Development Bank, (ii) the African Development Fund and (iii) the Nigeria Trust Fund. It was established in 1963 with membership being open only to regional countries, initially.
To mobilise external resources for the development of Regional Member Countries, AFDB extended its membership.
#UPSC #headline #news #G20 #summit #newdelhi #internationalrelations #forum #world #bank #group #system #mission #IBRD #JOBS #CORPORATE #investments #WTO
The International Fund for Agricultural Development (IFAD), a specialised agency of the United Nations, was one of the major outcomes of the 1974 World Food Conference in Rome.
The conference was organised by the United Nations in response to the food crises of the early 1970s, when global food shortages were causing widespread famine and malnutrition.
Global Environment Facility (GEF)
Established in 1991 on the eve of the 1992 Rio Summit, the Global Environment Facility (GEF) provides grant funds to developing countries for projects and activities that aim to protect the global environment.
This is to cover areas like biodiversity, climate change, international waters, ozone depletion, land degradation, primarily desertification, deforestation and persistent organic pollutants.
African Development Bank (AfDB)
The African Development Bank Group (AfDB) comprises (i) the African Development Bank, (ii) the African Development Fund and (iii) the Nigeria Trust Fund. It was established in 1963 with membership being open only to regional countries, initially.
To mobilise external resources for the development of Regional Member Countries, AFDB extended its membership.
#UPSC #headline #news #G20 #summit #newdelhi #internationalrelations #forum #world #bank #group #system #mission #IBRD #JOBS #CORPORATE #investments #WTO