- RBI KEEPS REPO RATE ON HOLD AS FOOD PRICES REMAIN HIGH
- The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) met from April 3 to 5
- MPC decided to keep the repo rate – the main policy rate – unchanged at 6.5%
- And to maintain the policy stance of ‘withdrawal of accommodation’ in the monetary policy
- Both the decisions were taken in a majority 5:1 voting by the six-member MPC
- MPC is headed by RBI Governor Shaktikanta Das
- Reasons for Unchanged Rates
- Overall Positive Outlook: Despite challenges in some sectors, the economy’s outlook remains positive.
- Moderating Inflation: Inflation has been coming down, but food price hikes are keeping headline inflation elevated.
- Focus on Durable Inflation Reduction: RBI priorities bringing inflation down to 4% consistently.
- Food Price Uncertainties: Concerns about future food price hikes influence RBI’s cautious approach.
- Supporting Growth: RBI aims to balance inflation control with supporting economic growth.
- Inflation Forecast – RBI expects inflation to moderate further in the coming months due to: Favorable base effect (comparison with high inflation period in 2023)
- Arrival of harvests and potential normal monsoon
- Headline inflation is projected at 4.5% for FY 2024-25
- Growth Forecast – RBI maintains its GDP growth forecast at 7% for FY 2024-25
- Potential risks to growth include geopolitical tensions and global economic disruptions
- Impact on Lending and Deposit Rates – Interest rates on loans are likely to remain unchanged in the near future
- Deposit rates might increase in some categories due to bank competition for funds Overall, the RBI priorities achieving durable inflation control while maintaining economic growth. The cautious approach reflects concerns about food price uncertainties
2. RAKHIGARHI FINDINGS IN NCERT BOOKS NARMADA DAM REFERECES DROPPED
- NCERT Textbook Revisions: Additions and Deletions
- Additions (+) History (Class 12) – Findings from DNA analysis of Rakhigarhi skeletons suggesting continuity of Harappan civilization and its genetic link to modern South Asians
- Reconstruction of facial features of Harappan people showing similarity to modern Haryana population
- Note: The inclusion of DNA analysis findings is disputed by some archaeologists who argue for a more nuanced interpretation of the data
- Deletions (-) Sociology (Class 12)
- Sentence about Scheduled Castes and Tribes being marked by poverty, powerlessness, and social stigma
- References to the Narmada Dam project displacing tribals and worsening their situation
- Mention of negative impacts of private property on tribals’ collective land ownership, specifically regarding the Narmada Dam project Political Science
- References to Babri Masjid demolition
3. ITC INFOTECH PLATFORM AIMS TO BOOST INCOME OF 10MN FARMERS
- ITC Infotech, the IT arm of ITC Group, is on a mission to improve the lives of Indian farmers
- Goal: Enhance the income of 10 million farmers by 2030
- Target Group: Farmers associated with over 4,000 Farmer Producer Organizations (FPOs) across India Platform: ITC Metamarket for Advanced Agriculture and Rural Services (ITCMAARS)
- What is ITCMAARS? – An AI and machine learning-driven platform offering a variety of services to empower farmers
- Current reach: Over 1.5 million farmers and 1,500 FPOs across 10 states
- Benefits for Farmers: Increased Income: Reportedly, farmers have seen a 30-50% income increase through ITCMAARS.
- Transformational Services: Predictive weather and crop advisory: Helping farmers make informed decisions.
- Intelligent farming nudges: Guidance on best practices and techniques.
- Market linkages: Connecting farmers with better markets closer to their farms.
- Personalised climate crop advisories: Tailored advice based on specific locations and weather conditions.
- Precision farming technologies: Optimising resource usage and improving yield.
- Scientific quality assaying: Ensuring product quality for better market value.
- Formal credit at lower cost: Facilitating access to affordable loans.
- Overall Approach – ITC Infotech positions ITCMAARS as a “phygital” ecosystem, combining digital technologies with physical outreach through FPOs and partners (over 1,500) to ensure wider adoption and support for farmers
4. VENKY’S PUSHING ANTIBIOTICS AS POULTRY GROWTH PROMOTER
- Antibiotic use in poultry farming by Venky’s – a major poultry producer in India
- Venky’s sells antibiotics for growth promotion and prevention in chickens
- These practices are discouraged by the World Health Organisation (WHO) as they contribute to antibiotic resistance in humans
- Examples of antibiotics used by Venky’s
- Tylosin: This critically important antibiotic for humans is used in Venky’s Tylomix feed for growth promotion in young chicks
- Amoxicillin: This highly important antibiotic for humans is included in Venky’s Amo-premix feed, also for growth promotion
- Neomycin: This critically important antibiotic is used in Vendox to prevent chick mortality
- Issues with this practice – Antibiotic resistance: Overuse of antibiotics in animals can lead to bacteria developing resistance, making them ineffective when needed to treat human infections.
- Spread of drug-resistant pathogens: Resistant bacteria can spread through contaminated meat, causing illnesses in humans that are difficult to treat
- Potential for deaths: A study suggests antibiotic resistance may have caused over 1.27 million deaths globally in 2019 Venky’s practices of using antibiotics for growth promotion and prevention in chickens raise concerns about antibiotic resistance and its potential dangers to human health
5. RBI TO ENABLE UPI FOR CASH DEPOSIT
- RBI Announces Measures to Enhance Financial Services The Reserve Bank of India (RBI) has proposed two key initiatives to improve accessibility and participation in financial services: 1. UPI-based Cash Deposits
- Objective: Enable cash deposits through the Unified Payment Interface (UPI) app
- Rationale: Leverage UPI’s popularity and convenience, similar to its existing use for card-less cash withdrawals at ATMs
- Benefits: Enhanced customer convenience for cash deposits
- Reduced cash handling burden on bank branches
- Timeline: Operational instructions for using UPI for cash deposits will be issued soon 2.Wider Participation in Sovereign Green Bonds (SGrBs)
- Action: Allow eligible foreign investors in the International Financial Services Centre (IFSC) to invest in SGrBs
- Current Scenario: Only FPIs (Foreign Portfolio Investors) registered with SEBI can invest in SGrBs
- Benefits: Broader investor base for SGrBs § Potentially increased investment in green initiatives funded by SGrBs
- Implementation: A separate scheme for IFSC investment in SGrBs will be notified in consultation with the government and IFSC Authority
- Mobile App for Retail Direct Scheme
- Context: The RBI mentions introducing a mobile app for its Retail Direct scheme
- Launched in November 2021: This scheme allows individual investors to directly manage government securities
- App Functionality: § Facilitate managing gilt accounts with RBI
- Enable participation in primary auctions for government securities
- Allow buying and selling securities on the NDS-OM platform These initiatives by the RBI aim to make financial transactions and investments more accessible and convenient for individuals and foreign investors.
ONE LINER
- President launches India’s first homegrown – CAR T Cell therapy for Cancer Treatment calls it new hope developed by the IIT Bombay
- World Health Organization (WHO) has launched an Artificial Intelligence (AI) called S.A.R.A.H (Smart AI Resource Assistant for Health)
