Today’s Current Affairs Update: “ProxyGyan IAS Express”
Date: 08 August 2024.
1. Sone River
2. QCI
3. Boilers Bill 2024
4. Asset Management Companies
5. Repo Rate
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Sone River:
• News: The National Disaster Response Force (NDRF) recently rescued 26 villagers stranded in flood waters of Sone River in Jharkhand's Garhwa district.
• About the Sone River
o. The Sone River is a significant southern tributary of the Ganges (Ganga) River, following the Yamuna River.
• . It plays a vital role in the river system of northern India.
• Course
o. Origin: The Sone River originates from the Amarkantak highlands in Madhya Pradesh, situated east of the Narmada River's source.
• Flow: It initially flows in a north-northwest direction through Madhya Pradesh, then turns eastward as it approaches the Kaimur Range. The river continues in an east-northeast direction through Uttar Pradesh and Bihar before joining the Ganges just above Patna, the capital of Bihar.
•. Length: The total length of the Sone River is 784 kilometers.
• Characteristics
• Width and Depth: The river is wide and shallow, forming pools of water in some areas.
• Floodplain: The floodplain of the Sone River is narrow, ranging from 3 to 5 kilometers in width.
• Flow: The river's flow is seasonal, and it is not significant for navigation.
• Valley and Geography
• Geology: The Sone Valley is almost a continuation of the Narmada River valley to the southwest. It is characterized by its forested and sparsely populated terrain.
• Borders: The valley is bordered by the KaimurRange to the north and the Chota Nagpur plateau to the south.
• Tributaries: The main tributaries of the Sone River include:
• Rihand River
• Koel River
• Other tributaries are:
• Gopad River
• Kanhar River 2. QCI Surajya Recognition & Ranking Framework:
• News: The Quality Council of India has recently introduced the Surajya Recognition & Ranking Framework to drive excellence in key sectors.
• About QCI Surajya Recognition & Ranking Framework
• It is an initiative aimed at fostering excellence among states and organizations to enhance the quality of life for citizens, contributing to the vision of a "Viksit Bharat" (Developed India):
• The QCI Surajya Recognition & Ranking Framework, beginning with the August 2024 rankings, set a new benchmark for excellence across the nation.
• The framework seeks to recognize and reward achievements in quality and innovation across various sectors:
• Key Pillars of the Framework: The framework is structured around four key pillars:
•. Shiksha (Education)
• Swasthya (Health)
• Samriddhi (Prosperity)
• Sushasan (Governance)
o. Surajya Recognition
• The Surajya Recognition acknowledges the outstanding performance and commitment to quality by states and organizations in these vital areas. 3. Boilers Bill 2024: • News: The Boilers Bill, 2024 was introduced in RajyaSabha recently to replace the century-old Boilers Act, 1923
• Aim:
• The new bill will replace a 100-year-old law
• The bill aims to improve trust by decriminalizing 3 out of 7 offenses.
• It shall also ensure speedy redressal for all non-criminal offenses to enhance the Ease of Doing Business and prioritize the safety of workers.
• Specific provisions have been made in the Bill to ensure the safety of persons working inside a boiler.
• Major Provisions of the Boilers Bill, 2024
• Enumeration of Functions and Powers: The Bill details the functions and powers of the Central Government, State Governments, and the Central Boilers Board. This clarification aims to prevent any confusion and ensure a clear delineation of responsibilities.
• Decriminalization of Offenses: Out of the seven offenses covered, three have been decriminalized. These non-criminal offenses will now be addressed through fiscal penalties imposed by an executive mechanism, rather than through judicial proceedings.
• Retention of Major Offenses: Criminal penalties have been retained for four major offenses that could potentially result in loss of life or significant property damage. This measure is intended to uphold safety standards.
•. Specific Safety Provisions: The Bill includes specific provisions to enhance safety for individuals working with boilers. It mandates that repairs and maintenance be conducted by qualified and competent personnel to ensure proper handling and reduce risks. 4. Asset Management Companies (AMCs): • News: SEBI has issued a circular recently amending the Mutual Funds Regulations, requiring AMCs to establish an institutional mechanism
• Definition: An asset management company (AMC) is a firm that invests funds collected from clients into a range of investment vehicles, including stocks, bonds, real estate, and other assets.
• Investment Structures: AMCs create pooled investment structures such as mutual funds, index funds, or exchange-traded funds (ETFs), managing these as single portfolios.
• Alternate Names: AMCs are often referred to as money managers or money management firms. When they offer mutual funds or ETFs to the public, they may also be known as investment companies or mutual fund companies.
• Regulation: In India, AMCs are regulated by the Securities and Exchange Board of India (SEBl), which oversees and controls their operations.
• How Size of AMCs is Calculated?
• Assets Under Management (AUM): The performance and size of AMCs are typically measured by their assets under management (AUM), which represents the total value of assets they manage on behalf of their clients.
• Role and Function of an AMC
• Investment Management: AMCs manage and optimize investment portfolios to achieve specific goals. They conduct market analysis and utilize their expertise to make informed investment decisions.
• Diversification: By pooling funds from various investors, AMCs can spread investments across a broad range of assets. This diversification helps in mitigating risk, as the performance is not dependent on a single investment.
5. Repo Rate:
> News: The RBI Governor Shaktikanta Das-headed six-member Monetary Policy Committee
(MPC) kept the benchmark repo rate unchanged at 6.5% for the eight consecutive time.
> More on News: The standing deposit facility (SDF) rate remains at 6.25 %, while the marginal standing facility (MSF) rate and the bank rate remain at 6.75 %.
> Repo Rate: The interest rate that the RBI charges when commercial banks borrow money from it is called the repo rate.
• Reverse Repo Rate: The interest rate that the RBI pays commercial banks when they park their excess cash with the central bank is called the reverse repo rate.
> Standing Deposit Facility (SDF): The SDF is a liquidity window through which the RBI will give banks an option to park excess liquidity with it. It is different from the reverse repo facility in that it does not require banks to provide collateral while parking funds.
> Marginal standing facility (MSF): MSF is a window for banks to borrow from the Reserve Bank of India in an emergency situation when inter-bank liquidity dries up completely.
> Impact of Repo Rate on Economy:
• Decrease in Repo Rate:
• When the RBI wants to encourage economic activity in the economy, it reduces the repo rates.
Doing this enables commercial banks such as the SBI to bring down the interest rates they charge (on their loans) as well as the interest rate they pay on deposits.
‹ This, in turn, incentivises people to spend money, because keeping their savings in the bank now pays back a little less, and businesses are incentivized to take new loans for new investments because new loans now cost a little less as well
• Increase in Repo Rate:
• RBI tries to control inflation in the economy by increasing the repo rate.
By doing this, it makes borrowing a costly affair for businesses and industries and this in turn slows down investment and money supply in the market.
• It eventually and negatively impacts the growth of the economy, which helps in controlling inflation.
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