UPSC Key—23 August, 2023: India’s ageing workforce, Global South and Incremental cash reserve ratio

UPSC Key—23 August, 2023: India’s ageing workforce, Global South and Incremental cash reserve ratio

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: India and its neighbourhood- relations.

Key Points to Ponder:

• What’s the ongoing story- Days after India and China held the 19th round of military talks on resolving existing issues on the Line of Actual Control (LAC) in eastern Ladakh, Indian military commanders on the ground are discussing possible modalities for limited disengagement at certain mutually-accepted points along the boundary, The Indian Express has learnt. The discussions, an official source said, are aimed at setting the stage for limited disengagement along the LAC on further orders, even as regular interactions between local military commanders on the ground will continue alongside other confidence-building measures.

• Map Work-Daulat Beg Oldie Depsang Plains, Demchok and Chushul

• India-China Border Dispute- Know the background

• What is Line of Actual Control?

• China’s aggressive attitude towards Indo-China Border and What impact can it have on India-China relations?

Freedom Sale

• Changing dynamics in Indo-China relationships-what are the points of irritation in recent scenario?

• Jingoism and not pragmatism nowadays dominate bilateral relations of India with her Neighbours -do you think so? Attest your opinion with few examples

• Resolving the Sino-Indian imbroglio-How?

Other Important Articles Covering the same topic:

📍19th round of military talks: India presses for access to all old patrolling points along the LAC

Moon mission on schedule, smooth sailing continues, says space agency

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies III: Achievements of Indians in science & technology; indigenization of technology and developing new technology.

Key Points to Ponder:

• What’s the ongoing story- A wave of anticipation swept the country as the Lander Module of Chandrayaan-3 prepared to make a “safe and soft landing” on the surface of the Moon Wednesday evening. If all goes to plan, the Moon landing will make India the first country to land a spacecraft on the lunar south pole, the finest moment till date of its space programme — and end the disappointment over the crash-landing of the Chandrayaan-2 lander four years ago. The ISRO, in a social media post Tuesday, said the Mission Operations Complex (MOX) has been buzzing with “energy” and “excitement”.

• Descent phase of Chandrayaan-3-know in detail

• Why the final approach will be a heady cocktail of anxiety, nervousness and anticipation?

• Do You Know-The critical technical manoeuvre that the Chandrayaan-3 lander will have to perform on August 23 when it enters the final 15 minutes of its attempt to make a soft landing on the Moon will be to transfer its high-speed horizontal position to a vertical one — in order to facilitate a gentle descent on to the surface. These final 15 minutes on Wednesday evening will determine the success of the mission. In July 2019, after the Indian Space Research Organisation (ISRO) aborted the first attempt to launch the Chandrayaan-2 mission, K Sivan, then chairman of India’s space research body, had described this phase as “15 minutes of terror”. Dr Sivan’s description captured the essence of the complexity of the mission’s final phase — the one in which Chandrayaan-2 failed after the Vikram lander did not switch appropriately from the horizontal to the vertical position, and hurtled on to the surface of the Moon when it was entering the “fine braking phase” 7.42 km from the lunar surface. The other critical part of the landing is the process, which will take place simultaneously, of reducing the lander’s horizontal velocity from a range of 1.68 km/sec (more than 6,000 km/h) at a height of 30 km from the lunar surface to almost zero for a soft landing at the designated site about 70 degrees South latitude. The landing is scheduled around 6.04 pm India time on August 23, ISRO has said. The landing in 2019 was seemingly on track until around 3 minutes before the final “terminal descent phase”, when the lander ended up spinning more than 410 degrees, and deviated from its calibrated spin of 55 degrees to crash on the Moon.
The speed and direction of the lander is controlled by 12 onboard engines. “The lander’s four engines are used to reduce the velocity and there are also eight small engines to control the direction of the descent. The engines are throttleable and the thrust can be varied from 800 Newton to a lower value. It can keep the lander hovering on the Moon’s gravity,” Dr Somanath said.

The proposed landing parameters for Chandrayaan 3 (screenshot from a Facebook Live presentation by ISRO) The proposed landing parameters for Chandrayaan-3, based on a presentation made during a Facebook Live session by ISRO Chairman S Somanath.

ISRO has added several layers of safeguards to ensure that an incident like the previous one does not recur-what are those several layers of safeguards?

• What happened in last moon mission?

• For Your Information-ISRO chairman S Somanath has said that the Chandrayaan-3 lander is designed with a failure-based approach – meaning thereby that every kind of failure eventuality has been accounted for and layers of safeguards have been built in. The spacecraft’s legs have been strengthened so that it can land safely even at greater speeds, its software has been updated, its fuel capacity increased, and its ability to manoeuvre and find a suitable place to land has been expanded. In a recent public talk, Somanath, disclosing the exact reason for the failure of Chandrayaan-2, said the spacecraft had generated more than optimum thrust in the final stages of landing, and that the onboard software’s error-correcting mechanism was not designed to attend to this immediately but only after completion of a certain cycle of tasks. As a result, the errors accumulated and by the time the computer attempted to correct these, the errors had bloated and could no longer be corrected, he said. These kinds of anomalies in the software have been rectified in Chandrayaan-3. “The core of Chandrayaan-3 is its sensors. When you have something that is remotely operated, then everything depends on its ability to sense its location, what is its speed, what is the orientation. There are different sensors used for this purpose. There are the velocimeters and altimeters which give a reference for the speed and the height of the lander,” he said. “There is a camera called a hazard-avoidance camera, there are also inertia-based cameras. The sensors are fused together using a computer algorithm to provide an indication of where the lander is positioned. This has been tested extensively,” he said. The Chandrayaan-3 lander is aiming to land at the start of daytime on the Moon, which extends to 14 Earth days. The instruments on the spacecraft are all solar powered and are designed to function for one lunar day, or a 14-day period on Earth.
chandrayaan 3

• What is Chandrayaan-3 mission?

• What is the name of Chandrayaan-3 lander Rover?

• Has the Chandrayaan-2 mission encountered failure?

• What was the Chandrayaan-2 mission?

• What went wrong with the Chandrayaan-2’s Vikram lander?

• What was missed because of the crash landing?

• How Chandrayaan-3 mission is different from Chandrayaan-1 and Chandrayaan-2?

• What is Low Earth Orbit (LEO)?

Other Important Articles Covering the same topic:

📍5 things you did not know about Chandrayaan, other Moon missions

Previous year UPSC Mains Question Covering similar theme:

📍India has achieved remarkable successes in unmanned space missions including the Chandrayaan and Mars Orbiter Mission, but has not ventured into manned space missions, both in terms of technology and logistics? Explain critically (UPSC GS3, 2017)
📍Discuss India’s achievements in the field of Space Science and Technology. How the application of this technology has helped India in its socio-economic development? (UPSC GS3, 2016)

PM at BRICS: Looking forward to bilaterals…India will soon be a global growth engine

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies II:  Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Key Points to Ponder:

• What’s the ongoing story-AS HE began his three-day official visit to South Africa for the BRICS (Brazil, Russia, India, China and South Africa) summit, Prime Minister Narendra Modi said on Tuesday that he looked forward to holding bilateral meetings with some of the leaders present there. All eyes are on a possible meeting between Modi and Chinese President Xi Jinping on the sidelines of the summit in Johannesburg. On Tuesday, the two leaders met along with other BRICS leaders at the Leaders’ Retreat.

• What PM Modi said in BRICS Business Forum leaders dialogue?

• BRICS-Know in detail

• Evolution of BRICS-Know in Detail

• Brazil, Russia, India, China and South Africa (BRICS) Economy-Key Features

• RIC (Russia-India-China) out of BRICS-Significance and Stature in World Politics?

• Why BRICS Matters?

• Is the BRICS alliance no longer relevant and effective?

• Do you agree that there is perhaps no other grouping in which the gap between aspiration and reality is as wide as in the BRICS?

• “The BRICS was always going to be a challenging grouping, since there was nothing organic to hold it together”-Comment

• “The expansion of BRICS is expected to be high on the agenda”-what kind of expansion and which countries can be included in the same?

• Do you think that the BRICS can emerge as an alternative economic and geopolitical pillar to the US and its allies?

• BRICS as “Voice’ of the Global South-Discuss

• What do you understand by the term “Global South”?

• What is Voice of Global South Summit?

• What is considered the Global South?

• Which countries are in Global South?

• The term ‘Global South’ is more related to geography or to the economies of the countries?

• What is the Global South known for?

• What are the differences between global north and global south?

Other Important Articles Covering the same topic:

📍BRICS might have been

Previous year UPSC Prelims Question Covering similar theme:

📍Consider the following statements: (UPSC GS1, 2016)
1. New Development Bank has been set up by APEC.
2. The headquarters of New Development Bank is in Shanghai.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

EXPRESS NETWORK

Biden to visit India for G20 summit from September 7-10

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s Interests.

Key Points to Ponder:

What’s the ongoing story- US President Joe Biden will travel to India from September 7 to 10 to attend the G-20 Leaders’ Summit during which he will discuss with other leaders a range of global challenges, including the Ukraine conflict, the White House announced on Tuesday. President Biden will also commend Prime Minister Narendra Modi’s leadership of the G20, the White House said in a statement. The G20 world leaders’ summit is scheduled to be held in New Delhi on September 9 and 10. The summit is expected to be one of the largest gatherings of world leaders in India. India assumed the G20 Presidency on December 1, 2022, from Indonesia.

• What is G20?

• Know the origin of G20

• How G20 Works?

• G20 or Group of Twenty-About, Purpose and Member Countries

• What is the theme of India’s G20 Presidency?

• For Your Information-The G20 Presidency steers the G20 agenda for one year and hosts the Summit. The G20 consists of two parallel tracks: the Finance Track and the Sherpa Track. Finance Ministers and Central Bank Governors lead the Finance Track while Sherpas lead the Sherpa Track. The Group does not have a permanent secretariat.

• India is currently part of the G-20 Troika (current, previous and incoming presidencies) comprising Indonesia, Italy and India-What is G20 ‘Troika’?

• G20 ‘Troika’ and India-Know in detail

• Procedure for taking over the G20 presidency-How it is Decided?

• G20-Relevance in today’s Changing Geopolitical Dynamics?

• Map Work-G20 member Countries

• In the context of India’s G-20 presidency, what will be India’s “evolving priorities”?

• “Greater voice for the global south” in economic cooperation and the need to “reform 21st century institutions”-Why the term ‘Global South’ is gaining currency?

• ‘G-20 deliberations have acquired a greater salience in the current global economic and political context’-Discuss

• Do You Know-The G-20, or Group of 20, is an intergovernmental forum of major developed and developing economies. It comprises Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Saudi Arabia, South Africa, Turkey, the UK, the US and nations under the European Union (EU). The G-20 is the premier forum for international economic cooperation representing around 85 per cent of the global GDP, over 75 per cent of the global trade, and about two-thirds of the world’s population.

• What is G20’s stand on Russia-Ukraine War?

Other Important Articles Covering the same topic:

📍G20 in India: Time to pounce on an opportunity

Previous UPSC Prelims Questions based on Same Theme:

📍With reference to the “G20 Common Framework”, consider the following statements: (GS1, 2022)
1. It is an initiative endorsed by the G20 together with the Paris Club.
2. It is an initiative to support Low Income Countries with unsustainable debt.
Which of the statements given above is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

EXPLAINED

Young Indians, aging workforce

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination:

• General Studies‐ III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment

• General Studies III: Inclusive growth and issues arising from it

Key Points to Ponder:

• What’s the ongoing story- While addressing the nation on Independence Day, Prime Minister Modi made a special mention to India being a youthful nation and highlighted the opportunities that lay before India’s youth. However, an analysis of India’s workforce, sourced from CMIE’s Economic Outlook data, shows that while India may be the country with the most youthful population, its workforce is rapidly ageing. In other words, the young are increasingly getting driven out of the job market.

• India’s workforce is ageing: What does it mean?

• For Your Information- An ageing workforce basically means that if one looks at all the employed people in India, the share of young people is going down while the share of those closer to 60 years of age is going up. In CMIE’s data, youth is defined as those belonging to ages above 15 years and below 25 years. However, since the PM has talked about those under 30 years as the youth, we have divided the workforce into three groups:
1. Those aged 15 years or more but less than 30 years,
2. Those aged 30 years or more but less than 45 years, and
3. Those aged 45 years and older.
the share of India’s youth (as defined by PM Modi) has fallen from 25% in 2016-17 to just 17% at the end of the last financial year in March. Even the share of those in the middle group has fallen from 38% to 33% over the same period. The oldest age category however has grown its share from 37% to 49%. In other words, just in the past seven years, the workforce has aged so much that the share of people 45 years and older has gone from one-third to almost one-half.

• Why is India’s workforce ageing?

• Employment Rate (ER) and Unemployment Rate (UER)-Know in Detail

• A good way to track this is to look at the metric called “Employment Rate”-How?

• Do You Know- A good way to track this is to look at the metric called “Employment Rate”. The Employment Rate (ER) for any population or age group tells us what proportion of that age group or population is employed. So, if there are 100 people in the ages 15 to 29 and only 10 are employed then the ER would be 10%. The population belonging to the youth category described by PM Modi grew in size from 35.49 crore in 2016-17 to 38.13 crore in 2022-23. Yet the total number of people in this age group that had a job shows a secular decline. So while this “young” population grew by 2.64 crore, the number of employed youth fell by 3.24 crore. In other words, far from keeping pace, the youth of India actually experienced a fall in employment of a whopping 31% in the past seven years. This is reflected in the sharp fall in the Employment Rate for this age-group. It fell from 29% to just 19%. In other words, while seven years ago, 29 of every 100 youth (15 to 30 ages) used to have a job, today that number has fallen to 19 out of every 100. India has a fast-growing youth population, that by itself does not guarantee more jobs for the youth. In fact, India’s workforce is rapidly ageing. That’s because the young are failing to make their mark in the job market and it appears they are increasingly getting elbowed out by the not-so-young Indians. Even if one accounts for the possibility that a lot of young people may be pursuing higher studies, the trend is still stark enough to merit a look by policymakers. Moreover, even if one moves away from the CMIE database and looks at other so-called official surveys, there is evidence to suggest that in India’s unemployment is highest for the youth, and often rises with educational attainment. Unless these trends are reversed, India may continue to experience the rather counterintuitive phenomenon of being a youthful country with an ageing workforce.

• What Is the Unemployment Rate? How it is Calculated by CMIE?

• Centre for Monitoring Indian Economy (CMIE)-Role and Under which Ministry/Organisation?

• Reasons for rise in Unemployment Rate

• What do you understand by Labour Force and Labour Force participation rate (LFPR)?

• Female Labour Force Participation Rate-Know about this in detail

• Unemployment in India-Types (Open Unemployment, Disguised Unemployment, Seasonal Unemployment, Cyclical Unemployment etc.)

• Know the Basics-Demography, Demographic characteristics, Demographic potential, Demographic Transition, Demographic Dividend and India’s Demographic Dividend

Other Important Articles Covering the same topic:

📍A DISSONANT NOTE

ON MADRAS DAY, THE STORY BEHIND THE CITY’S FOUNDING AND NAME

Syllabus:

Preliminary Examination: History of India

Mains Examination: General Studies I: Post-independence consolidation and reorganization within the country.

Key Points to Ponder:

• What’s the ongoing story- August 22 is annually celebrated as Madras Day, to commemorate the foundation day of the city of Madras (now Chennai). It was on this day in 1639 that the town of Madrasapatnam, which later expanded and developed into modern-day Chennai, was purchased by the East India Company (EIC) from local kings. This would be a step in the establishment of the British Empire in India for the next few centuries. After the British rule ended in 1947, the state and the city continued to be referred to as Madras. It was carved out of the larger Madras presidency that had covered parts of other South Indian states. In 1969, the state was officially renamed Tamil Nadu and in 1996, the capital city of Madras became Chennai.

• Why the British came to Madras?

• How Madras became Tamil Nadu and then Chennai?

• Know the Past-After independence, the Madras province came to be known as Madras State. The demand for a change in name to Tamil Nadu had been raised by some politicians and scholars for a while. In 1956, Congress leader K P Sankaralinganar began an indefinite fast. One of his demands was the renaming of the state to Tamil Nadu. After 76 days of his protest, he died on October 13, 1956. This led to the cause gaining more attention. On May 7, 1957, the DMK brought in a name change resolution in the State Assembly but the resolution was defeated. It was again brought up in January 1961 by Socialist Party MLA Chinna Durai. A month later, the resolution failed again after it was tabled, without the support of the ruling Congress party. In 1961, a Member of Parliament and Communist leader from West Bengal, Bhupesh Gupta, moved a Bill in Parliament for renaming Madras State as Tamil Nadu. At that time, CN Annadurai, who was a Rajya Sabha member and would go on to become the last Chief Minister of Madras and the first Chief Minister of Tamil Nadu, supported the move. But this was also defeated due to a lack of a majority. Later in 1967, once his party DMK was in power, Annadurai moved a resolution in the State Assembly. He argued that a capital city (Madras) cannot become the name of a state and said that the name Tamil Nadu had been used in ancient literature. Parties, including Congress, welcomed the resolution. Since the renaming needed a Constitutional amendment, both Houses of Parliament approved the Bill in November and December 1968 respectively. The state government later issued a gazette notification to bring the name change into effect on January 14, 1969.
The renaming of the capital city to Chennai came around a time when Bombay’s name was also changed to Mumbai in 1996. Calcutta would soon become Kolkata in 2001. Such changes have been billed as attempts to shed colonial influences. In the case of Madras or Chennai, it is difficult to ascertain the British influence in these names as such, though their role in shaping them right from the onset is undeniable.

Other Important Articles Covering the same topic:

📍Madras Day: Madras Literary Society to rekindle history through two exhibitions

THE EDITORIAL PAGE

RESISTING LANDSLIDES

Syllabus:

Preliminary Examination: Indian and World Geography-Physical, Social, Economic Geography of India and the World.

Mains Examination: 

• General Studies I: Important Geophysical phenomena such as earthquakes, Tsunami, Volcanic activity, cyclone etc., geographical features and their location-changes in critical geographical features (including water-bodies and ice-caps) and in flora and fauna and the effects of such changes.

• General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

• General Studies III: Disaster and disaster management.

Key Points to Ponder:

• What’s the ongoing story- Kalachand Sain Writes: The deaths and destruction by landslides in Himachal Pradesh last week have led to much-needed attention on the Himalayan ecosystem – the world’s youngest and roughest mountain chain. Tectonic or neo-tectonic activities, associated with numerous subsurface processes like rock deformation, exhumation and reworking of rocks and surface processes such as erosion, weathering and rain/snow precipitation make the ecosystem inherently fragile. Climate-induced excessive events like freezing/thawing and heavy rain/snow precipitation lead to avalanches, landslides, debris flow, glacial lakes outburst floods, landslide lakes outburst floods and flash floods. They add to the precariousness of the mountain system. The Himalaya is further stressed by anthropogenic activities.

• Why is Himalayan ecosystem fragile?

• What are the ecological problems faced by the Himalayan States?

• How disaster management is done in the landslide and subsidence-hit zone?

• How do the Centre and state government ensure the safety and rehabilitation of residents?

• Run-of-the-river (RoR) hydropower projects in the Himalayan states-what are the issues and challenges?

• What Ravi Chopra committee which was constituted by the Supreme Court says about the developmental project in Himalayan States

• Do You Know-Research has also shown that these projects have a role in creating and aggravating the disasters like the floods of 2013 and 2021 in Uttarakhand. Expert bodies like the Ravi Chopra committee constituted by the Supreme Court have established this. The committee reasoned that the construction of RoRs, at sediment-rich elevations formed by the receding of glaciers, above the main central thrust — like that of the Joshimath region — is an invitation for disaster.

• What are the major steps to be undertaken for safeguarding the fragile ecosystem of the Himalayan States?

• For Your Information-Floods and landslides are not uncommon in the Himalayan region. The young mountains are geologically active and the region has a long history of downslope movement of rocks and boulders. According to the ISRO’s Landslide Atlas of India, all 12 districts of Himachal are susceptible to landslips. But the slopes seem to have become more unstable in recent years.
According to the state’s disaster management data, the number of landslides increased nearly six times between 2020 and 2022. Himachal’s Disaster Management Plan ascribes this to climate change and the increase in extreme rainfall events. It’s correct that the average temperature in the Himalayas is rising faster than the rest of the country. There is also no doubt that short but intense bursts of rainfall have become frequent in the state, like in several other parts of the country. But ecologically-insensitive development has compromised Himachal’s capacity to withstand inclement weather. In the past 10 years, the state has gone on a road-widening spree. Sixty-nine national highway projects have been approved, of which five are four-lane highways. Roads and highways are important to the region’s economic development. But such projects must be mindful of the area’s ecological vulnerabilities. For instance, road expansion drives rarely factor in slope stability. There is very little planning on what to do with construction debris. Last year, the Himachal Pradesh High Court expressed serious concerns on the “unplanned excavation” of the hills and “poorly executed construction” of roads in the state.

Other Important Articles Covering the same topic:

📍The 360° UPSC Debate| Himalayan States: Environmental concerns vs development

Previous year UPSC Mains Question Covering similar theme:
📍Describe the various causes and the effects of landslides. Mention the important components of the National Landslide Risk Management Strategy. (2021, GS3)
📍Discuss the recent measures initiated in disaster management by the Government of India departing from the earlier reactive approach. (2020, GS3)
📍Vulnerability is an essential element for defining disaster impacts and its threat to people. How and in what ways can vulnerability to disasters be characterized? Discuss different types of vulnerability with reference to disasters. (2019, GS3)
📍Disaster preparedness is the first step in any disaster management process. Explain how hazard zonation mapping will help disaster mitigation in the case of landslides. (2019, GS3)
📍How important is vulnerability and risk assessment for pre-disaster management? As an administrator, what are key areas that you would focus on in a Disaster Management System? (2013, GS3)

ECONOMY

Banking system liquidity turns deficit for first time in FY24 due to I-CRR, tax outflows

Syllabus:

Preliminary Examination: Economic and Social Development

Mains Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Key Points to Ponder:

• What’s the ongoing story-Banking system liquidity turned deficit for the first time in the current fiscal on August 21 after the Reserve Bank of India’s (RBI) asked banks to maintain incremental cash reserve ratio (I-CRR), goods and services tax (GST) outflows and selling of dollars by the central bank. The liquidity, as reflected by the amount of money injected by the RBI into the system, stood at Rs 23,644.43 crore on August 21, the latest RBI data showed. Since the beginning of FY2024, the RBI has been absorbing excess liquidity from the banking system.

• What is liquidity in the banking system?

• Why is liquidity important in banking?

• What is incremental cash reserve ratio (ICRR)?

• “Banking system liquidity turned deficit for the first time”-What do you understand?

• What has Triggered this Deficit?

• How this condition can impact market?

• For Your Information-“The liquidity has turned deficit because of various factors – the incremental CRR has taken out Rs 1.1 lakh crore of liquidity from August 12 onwards and there are tax payments which are due. The RBI has been selling dollars in the market, which has also contributed to taking out liquidity,” Bank of Baroda’s Chief Economist Madan Sabnavis said. Earlier this month, the RBI mandated banks to maintain an I-CRR of 10 per cent on the increase in their net demand and time liabilities (NDTL) between May 19, 2023, and July 28, 2023, effective August 12. The temporary move was aimed at managing the liquidity overhang generated due to the return of Rs 2,000 banknotes to the banking system, RBI’s surplus transfer to the government, pick up in government spending and capital inflows. RBI Governor Shaktikanta Das had said the I-CRR will absorb above Rs 1 lakh crore of excess liquidity from the banking system. The RBI said it will review the I-CRR on September 8, 2023, or earlier, ahead of the festival season.

• Know these Terms-Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), Open Market Operations (OMOs), Market Stabilisation Scheme (MSS), Repo Rate, Reverse Repo Rate, Liquidity Adjustment Facility (LAF), Marginal Standing Facility (MSF) Bank Rate

Other Important Articles Covering the same topic:

📍Monetary policy meet: RBI asks banks to set aside incremental CRR

Previous year UPSC Prelims Question Covering similar theme:
📍If the RBI decides to adopt an expansionist monetary policy, which of the following would it not do? (UPSC GS1, 2020)
1. Cut and optimize the Statutory Liquidity Ratio
2. Increase the Marginal Standing Facility Rate
3. Cut the Bank Rate and Repo Rate
Select the correct answer using the code given below:
(a) 1 and 2 only
(b) 2 only
(c) 1 and 3 only
(d) 1, 2 and 3

For any queries and feedback, contact priya.shukla@indianexpress.com
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