Current Affairs 5 & 6 January 2025

Daily Current Affairs Quiz
5 & 6 January, 2025

International Affairs

1. Ebola Virus 

Context:

Uganda conquers Ebola in 69 days. The outbreak, which spread across nine districts, posed one of Uganda’s greatest public health challenges in recent years.

Ebola Virus 

Ebola, also known as Ebola virus disease (EVD) and Ebola hemorrhagic fever (EHF), is a viral hemorrhagic fever in humans and other primates, caused by ebolaviruses.

• Cause
  • Ebola disease is caused by an infection with an orthoebolavirus, a virus that belongs to the Filoviridae family.
• Symptoms
  • Fever, sore throat, muscle pain, headaches, vomiting, diarrhea, rash, and decreased liver and kidney function.
• Mortality Rate
  • It kills between 25% and 90% of infected individuals, with death often due to fluid loss. Early treatment increases survival rates.

National Affairs

1. National Security Act, 1980

Why in News?

Manipur Governor Ajay Kumar Bhalla suggested that the State police use legal options such as the National Security Act, 1980, which allows detention for a year without trial, against miscreants and troublemakers.

The National Security Act (NSA)

The National Security Act (NSA) of 1980 is an Indian law that allows for the preventive detention of people in certain cases. The act was introduced by the Indira Gandhi government in 1980 and came into effect on September 23, 1980.

• About:
  • The NSA is a preventive detention law that was enacted in 1980 to maintain public order and national security.
  • Preventive Detention involves the detainment (containment) of a person in order to keep him/her from committing future crimes and/or from escaping future prosecution.
    • Article 22 (3) (b) of the Constitution allows for preventive detention and restriction on personal liberty for reasons of state security and public order.
    • Article 22(4) states that no law providing for preventive detention shall authorize the detention of a person for a longer period than three months.
• Maximum Time Limit of Detention
  • The maximum period for which one may be detained is 12 months.

2. Development Projects Great Nicobar Island

Context:

An international cruise terminal to facilitate a “global” port-led city, “high-end” tourism, and a ship-breaking yard are among the new additions to the ₹72,000-crore mega-infrastructure project in Galathea Bay, Great Nicobar Island proposed by the Union Shipping Ministry.

Great Nicobar Island

Great Nicobar is the southernmost and largest of the Nicobar islands in India, just north of Sumatra. It is part of India, in the Nicobar district within the union territory of the Andaman and Nicobar Islands. The Nicobar Islands have been well known to Indian mariners since the date of the seafaring Cholas.

3. The Polavaram Project

Context:

The Telangana government has decided to study the impact of the Polavaram irrigation project on the State.

The Polavaram Project

The Polavaram Project is a multi-purpose irrigation project in Polavaram, Eluru district, Andhra Pradesh, India, being constructed on the Godavari River. It has National project status and has reservoir back water that spreads into Chhattisgarh and Odisha States.

• Purpose
  • The project aims to address water scarcity, increase agricultural productivity, and generate power. 
• Location
  • The project is located on the Godavari River in the West Godavari and East Godavari districts of Andhra Pradesh. The reservoir extends into parts of Chhattisgarh and Odisha as well. 
• Features
  • A dam that will generate 960 MW of hydropower 
  • A drinking water supply for 285,000 people in 611 villages 
  • A diversion of 80 TMC of water to the Krishna River basin 
  • A gross irrigation potential of 436,825 hectares 
• Background
  • The project was first proposed in 1941 and was declared a National Project in 2014. 

4. Digital Personal Data Protection Rules, 2025

Context:

The Draft Digital Personal Data Protection (DPDP) Rules, 2025, will take forward the Digital Personal Data Protection Act of 2023.

The Draft Digital Personal Data Protection (DPDP) Rules, 2025

It comes with the objective of improving the legal framework for digital personal data by giving the required intricacies and balancing between the right to privacy of an individual and the requirement to process that personal data lawfully for carrying out those purposes.

• Right to Privacy – Article 21
  • Supreme Court of India has Stated that under the Article 21, the right to privacy is a fundamental right too. 
  • Article 21 of the Indian Constitution speaks about
    • Right to life
    • Right to personal liberty

Key Findings:

• Based on the Digital Personal Data Protection Act of 2023
• Status
  • Open for public consultation until 18 February
• Main Provisions
  • Informed Consent:
    • Fiduciaries have to provide clear notices to users about the data collected
  • Exemptions:
    • Data collected for subsidy and benefits purposes is exempt from certain provisions.
  • Data Security:
    • Data fiduciaries shall have reasonable security safeguards in place.
  • Data Deletion:
    • The data fiduciary will delete the user data within two days of giving notice and may stop the process based on user action during such notice period.
  • Parental Consent:
    • For personal data related to children.

5. Lobia or Thattapayaru Crop Successfully Sprouted in Space: ISRO

Context:

A batch of cowpea seeds — better known as lobia in Hindi or thattapayaru in Tamil — have successfully sprouted in space, days after they were taken into orbit by an Indian Space Research Organisation (ISRO) mission.

Lobia or Thattapayaru

Lobia, also known as thatta payaru or cowpea, is a leguminous crop. Lobia is primarily a Kharif crop, which means it is typically planted during the monsoon season (June-July) and harvested by the end of the monsoon or in the early post-monsoon period (around October-November).

• Maximum Producing States
  • Uttar Pradesh
  • Rajasthan
  • Madhya Pradesh
  • Maharashtra

ISRO CROPS experiment on PSLV-C60 SpaDeX Mission

• PSLV-C60 SpaDeX Mission
  • The CROPS experiment saw the cowpea seeds germinate within four days in PSLV-C60 SpaDeX mission’s PS4-Orbital Experiment Module, known as POEM-4.
• About Experiment
  • The experiment, developed by Vikram Sarabhai Space Centre (VSSC), aims to develop ISRO’s capabilities for growing and sustaining flora in extraterrestrial environments.

MCQ Question

Which of the following is true about the Lobia (Thatta Payaru) crop and the PSLV-C60 SpaDeX Mission?

A) Lobia is a Rabi crop, grown primarily during the winter season and harvested in early summer.
B) The PSLV-C60 SpaDeX Mission experimented with the germination of cowpea seeds in space, and the seeds sprouted in seven days.
C) Lobia is primarily grown in the Kharif season (monsoon), and it is most commonly produced in states like Uttar Pradesh, Rajasthan, and Madhya Pradesh.
D) The PSLV-C60 SpaDeX Mission was a failure in testing the viability of plant growth in space.
E) Lobia (Thatta Payaru) is grown mostly in summer and is harvested during the winter months.

Correct Answer:

C) Lobia is primarily grown in the Kharif season (monsoon), and it is most commonly produced in states like Uttar Pradesh, Rajasthan, and Madhya Pradesh.

6. Global Nutrition Targets (GNTs) by WHO

Context:

WHO‘s Member States have endorsed global targets for improving maternal, infant and young child nutrition and are committed to monitoring progress. The Targets include addressing issues like Stunting, Anaemia, Low Birth weight and Childhood Overweight.

• Stunting
  • Stunting is a condition where a child is too short for their age due to poor nutrition, repeated infections, or inadequate psychosocial stimulation.

• Anaemia
  • Anemia is a blood disorder that occurs when your body doesn’t have enough healthy red blood cells or hemoglobin, the protein that carries oxygen in red blood cells.
  • Anemia Mukt Bharat (AMB):
    • Aims to reduce anemia in children, adolescents, and women.
    • The Ministry of Health and Family Welfare (MoHFW) launched in 2018.
  • National Iron+ Initiative Program (NIPI)
    • This program provides supplementation for pregnant and lactating women, and supplementary nutrition for adolescent girls.
    • Launched in India in 2013 by the National Health Mission (NHM) to address anemia
  • Mission Poshan 2.0
    • This program focuses on maternal nutrition, infant and young child feeding, and treatment of malnutrition.
    • Ministry for Women and Child Development inaugurated Poshan 2.0
      • It was announced in Union Budget 2021-22 by merging supplementary nutrition programmes and the POSHAN Abhiyaan.
    • Global Hunger Index: India’s Position is 105th out of 127 countries.

Social Hostilities Index Report

7. Indus Valley Script

Context:

Tamil Nadu Chief Minister M.K. Stalin announced on Sunday a $1-million prize for experts or organisations that succeeded in deciphering the scripts of the Indus Valley Civilisation for everyone to understand.

The Indus Script

• The Indus script, also called the Harappan script or the Indus Valley Script, is a corpus of symbols produced by the Indus Valley Civilisation.
• The script has not been deciphered despite numerous attempts.
• Publication
  • The first publication of a seal with Harappan symbols was in 1875.
• Script
  • The Brahmi script is said to be associated with the Indus system, and scholars believe this.Some also associate it with a Dravidian language.

The Indus Valley Civilisation

The Indus Valley Civilisation (IVC), also called the Indus Civilisation, was a Bronze Age civilization of northwestern South Asia between 3300 and 1300 BCE, and in its mature form between 2600 and 1900 BCE.

• Location
  • The sites are spread all over the land of modern Pakistan, northwestern India, and northeast Afghanistan.
• Period
  • Bronze Age
• Major Sites
  • Harappa, Mohenjo-daro, Dholavira, and Rakhigarhi

Lothal: Global Hub for Maritime Heritage

8. Cabinet Committee on Security (CCS)

Context:

26 Rafale-M fighter jets for the Indian Navy’s aircraft carriers, and three additional Scorpene-class conventional submarines. The two deals are expected to be put before the Cabinet Committee on Security (CCS) for approval.

Rafale-M Fighter Jets

Rafale M is a naval version of the Rafale fighter jet which is designed specifically for carrier-based operations. During Mission CLEMENCEAU 25, the Charles de Gaulle CSG and Indian Navy will hold 42nd annual Varuna bilateral exercise.

• Manufactured By: France

The Cabinet Committee on Security (CCS)

The Cabinet Committee on Security (CCS) is a cabinet committee of the Government of India which discusses, debates, and is the final decision-making body on senior appointments in the national security apparatus, defence policies and expenditure, and generally all matters concerning India’s national security.

• Constitutional Status
  • Cabinet Committees are extra-constitutional, meaning, they are not mentioned in the Indian Constitution.
• Members
  • Headed By: Prime Minister of India
    • Minister of Defence
    • Minister of Home Affairs
    • Minister of Finance
    • Minister of External Affairs
• The National Security Adviser, the Cabinet Secretary and the Defence Secretary have also been attendees of the CCS meetings.

9. Avian Influenza

Why in News?

With Maharashtra reporting India’s first case of avian influenza among animals, the Union Animal Husbandry Ministry sent a circular to all States. 

Avian Influenza

Avian influenza is another term used for bird flu. This highly contagious viral infection is caused in birds and poultry. H5N1, which first originated in Southern China in 1996, is highly pathogenic.

• Effects in Human
  • It is primarily a disease of birds, but certain strains such as H5N1, H5N8 have demonstrated the ability to infect mammals.
• Mortality Rate
  • Mortality from this virus stands at approximately 60% of its infected population.

10. Rapid Rail Transit System (RRTS)

Context:

Prime Minister Narendra Modi inaugurated a 13-km-long Rapid Rail Transit System (RRTS) section between New Ashok Nagar in Delhi and Sahibabad in Uttar Pradesh on Sunday.

Rapid Rail Transit System (RRTS)

• About
  • RRTS is a semi-high-speed, high-frequency rail commuter transit network built for the corridor from Delhi to Meerut.
  • It has an 82-km-long stretch between Delhi and Ghaziabad.
• Features
  • High speed and capacity, dedicated corridor, environmental considerations, economic growth, and therefore a sustainable future are some advantages of RRTS.
• Geographical Theories associated with RRTS
  • Central Place Theory
    • As per Central Place Theory, settlements initially develop as market town settlements for the services of surrounding areas.
  • Geography of Theories
    • Gravity Model suggests that population and distance are the factors that decide interactions with the two points.
  • Diffusion Theory
    • Diffusion Theory describes how ideas, innovations, and practices diffuse across space.

Kavach: The Shield of Safety

11. PLI Scheme

Context:

The Union government is set to launch another round of production-linked incentive scheme for the steel sector, the Union Ministry of Steel said in a statement on Sunday.

Production-linked incentive scheme

12. Panchayat Se Parliament 2.0

Context:

Lok Sabha Speaker Om Birla will on Monday inaugurate “Panchayat Se Parliament 2.0” which seeks to give insight into the Constitution and parliamentary procedures to over 500 women representatives from Panchayati Raj institutions from across the country.

The Panchayat Se Parliament 2.0 Programme

• 502 elected women representatives from Scheduled Tribes (STs) have taken part in the event across India.
• The Panchayat Se Parliament 2.0 Programme
  • Awareness and empowerment of women for knowing how to strengthen constitutional and democratic values.
    • Organized by National Commission for Women (NCW) in collaboration with the Lok Sabha Secretariat and Ministry of Tribal Affairs.
• Objective
  • To empower the elected women representatives from diverse backgrounds in Panchayats (PRIs) and urban local bodies (ULBs) with insights into constitutional provisions, parliamentary procedures, and governance.
• Key Features
  • Includes interactive workshops by experts and Member of Parliaments (MPs), and guided tours of the New Parliament House, Samvidhan Sadan, Pradhanmantri Sangrahalaya, and Rashtrapati Bhavan.
  • Panchayat Se Parliament Tak 1.0 was conducted in January 2024 with over 500 participants.
• Acts for Women Reservation
  • 73rd and 74th Constitutional Amendments (1992 and 1993)
  • 106th Constitutional Amendment Act, 2023
• Birsa Munda led the Munda Rebellion (Ulgulan), and his birth anniversary is celebrated as Janjatiya Gaurav Divas.

13. PM eDRIVE Scheme

Context:

The PM eDRIVE scheme, worth ₹ 2,000 crores, will offer 80% or more subsidy for upgradation of front-end infrastructure for public fast-charging stations for electric vehicles.

PM eDRIVE Scheme

• Launch Date
  • October 1, 2024
• Ministry
  • The Ministry of Heavy Industries (MHI)
• About
  • It is designed to further the cause of electric mobility in India with an outlay of Rs 10,900 crore over two years.
  • It has been announced to replace FAME II.
• Scope
  • Automakers can recover the subsidy amount for eligible sales of electric vehicles, just like the earlier FAME-II scheme.
  • Electric cars are, however, not eligible for the subsidy.
• Other Provisions
  • Installation of Electric vehicle public charging stations (EVPCS) in selected cities and on selected highways.

14. Vadhvan Port

Context:

ITD Cementation India Ltd has won an engineering, procurement, and construction (EPC) contract worth ₹ 1,648 crore for construction at the Vadhvan Port in Maharashtra.

Vadhvan Port: Deep Seaport in Maharashtra

• Groundbreaking for the construction
  • By PM of India Shri N. D. Modi on 30 Aug 2024.
• Concept plan designed by Surendra Sharma in 2015 for MMB.
• Constructed by Jawaharlal Nehru Port Authority (JNPA).
• First Offshore Port built on artificial island in India.
• Estimate
  • Total estimated cost of construction : ₹76,220 crore /US$9.1 billion.
• Port island built on Arabian sea with depths of over 20 metres, accommodating Ultra Large Container Ships (ULCS) vessels.

Switzerland to Invest in Vadhvan Port

23. The systematic withdrawal scheme introduced under the National Pension System (NPS) provides retirees with a facility to deploy their retirement corpus and have their funds managed in a cost-efficient manner.

Agriculture

1. National Policy Framework on Agricultural Marketing (NPFAM)

Context

In Haryana’s Tohana, SKM held another Kisan Mahapanchayat to reject the recently released draft of the National Policy Framework on Agricultural Marketing (NPFAM).

Draft National Policy Framework on Agriculture Marketing in India

Agriculture Marketing in India

2. Remote Sensing in Agriculture

Context:

The Agriculture Minister further said that the Centre had now decided to assess crop losses through satellites i.e. remote sensing, as opposed to manual assessments, which he said will ensure “correct and accurate” assessments of crop losses under the crop insurance scheme.

Remote Sensing in Agriculture

• Key Applications
  • Crop Health Monitoring:
    • Early detection of crop diseases, optimal count of plants, and yield estimation.
  • Soil and Crop Condition Analysis:
    • Generation of soil property maps for enhanced insight into crop health and decision-making.
  • Water Stress Detection:
    • Crop water stress assessment; hence, irrigation schedules can be adjusted accordingly.
  • Weed and Pest Detection:
    • Weed presence can be detected for efficient application of pesticides and targeting.

• Crop and Soil Variability Mapping:
  • Highly detailed maps showing spatial variability of crops and soil health for more accurate management decisions.

• Remote Sensing Platforms and Resolutions:
  • Platforms:
    • Collection of data through satellites, aircraft, and drones.
  • Spectral Bands:
    • Acquisition of several wavelengths of light to understand crop health.
  • Resolutions:
    • Spatial resolution, temporal resolution, and radiometric resolution.

• CIBO and Remote Sensing in Agriculture:
  • Offers advanced Performance Zone maps from remote sensing data.
  • Classifies farmland into various levels of productivity: Best, Average, Low, and Varying.
  • Calculates the risk of farming on a piece of land according to performance zones.
  • Measures performance zones that determine the risk of farming a new piece of land.

3. Agricultural Credit Growth in India

Agricultural Credit Growth refers to the increase in the amount of credit (loans, financing, and financial services) provided to the agricultural sector, including farmers, agribusinesses, and rural communities. This growth indicates the rising availability of financial resources for agricultural activities, which could range from planting and irrigation to machinery purchase, livestock farming, and value-added agricultural businesses.

Key Drivers of Agricultural Credit Growth

• Formalization of Rural Credit:
  More farmers are turning to formal credit sources (banks, cooperatives) rather than informal sources like moneylenders, which leads to improved access to affordable loans.
• Government Initiatives:
  The government sets annual credit targets for banks and rural institutions to ensure financial support for farmers. Programs like Kisan Credit Cards (KCC) and subsidized loans contribute to credit growth.
• Increased Disbursements:
  In FY24, agricultural credit disbursements reached ₹ 25.1 trillion, 25% above the target, showing a positive trend in credit availability.
• Digitization:
  Digital platforms and land record digitization help streamline loan applications and improve access for farmers, particularly smallholders.

Eligibility for Credit

To access credit, farmers must provide verified records of their agricultural activities and complete KYC (Know Your Customer) procedures. This ensures transparency and reduces fraud.

Importance of Agricultural Credit Growth

• Boosts Productivity:
  Access to credit enables farmers to invest in seeds, equipment, and technology, increasing agricultural output.
• Financial Inclusion:
  It helps reduce dependence on informal credit and promotes financial inclusion, providing better terms and lower interest rates.
• Supports Rural Development:
  Credit availability supports not only farming but also livestock, fisheries, and agro-processing, boosting rural economies.

Banking/Finance

1. LODR Regulations

Context:

Four Kirloskar companies said they have filed an appeal before the Securities Appellate Tribunal challenging the SEBI letter asking them to disclose the deed of family settlement that was signed by members of the Kirloskar family.

Listing Obligations and Disclosure Requirements (LODR)

The LODR Regulations are Listing Obligations and Disclosure Requirements prescribed by the Securities and Exchange Board of India (SEBI). They apply to the companies listed in the Indian stock exchanges and have been enacted for increasing transparency, accountability, and corporate governance. The main idea is to make sure that the listed companies are disclosing accurate and timely information to the investors, regulators, and stakeholders.

Key Features of the LODR Regulations:

• Purpose: To enhance transparency, accountability, and corporate governance in companies listed on Indian stock exchanges.
• Key Disclosure Requirements:
  • Periodic Disclosures: Quarterly financial results, annual reports, and performance updates.
  • Material Events: Disclosure of major events like mergers, acquisitions, or changes in management.
  • Related Party Transactions: Transparency on dealings with related parties.
• Corporate Governance:
  • Independent Directors: Ensure proper oversight and unbiased decision-making.
  • Committees: Companies must have audit, nomination, and remuneration committees.
• Timely Filing:
  • Companies must adhere to strict timelines for filing financial reports, shareholding patterns, and corporate governance updates.
• Financial Reporting:
  • Half-Yearly & Annual Reports: Mandatory filings with certified audits.
• Investor Protection:
  • Protection against insider trading and ensuring that shareholders are informed and have their rights protected.
• Compliance with SEBI:
  • Adherence to SEBI’s corporate governance, disclosure, and compliance guidelines to maintain market integrity.
• Risk Management:
  • Companies must implement a risk management framework to mitigate financial and operational risks.
• Amendments:
  • SEBI periodically updates the regulations to stay aligned with global best practices and market needs.
• Importance:
  • Promotes investor confidence, enhances market transparency, and ensures corporate accountability.

A Deed of Family Settlement (DFS)

A Deed of Family Settlement (DFS) is a legal contract between family members that outlines terms and conditions to be followed in the event of a disagreement. In banking, a DFS can be relevant in the context of the Kirloskar group, which has been involved in a dispute over the validity of a DFS since 2016.

SEBI Issued a Directive on Transfer of Shareholdings

2. State Bank of India Poverty Reduction Report

• Key Findings:
  • Rural Poverty Reduction: The poverty ratio in rural areas has significantly decreased, standing at 4.86% in FY24, down from 7.2% in FY23.
  • Urban Poverty: The urban poverty ratio also declined to 4.09% in FY24, from 4.6% in FY23.
  • Contributing Factors:
    • Improved Infrastructure: Development in rural infrastructure.
    • Consumption Growth: Rapid growth in rural consumption levels.
    • Direct Benefit Transfers: Government transfers played a major role in poverty reduction.

Multidimensional Poverty Index (MPI)

3. Loan-to-Deposit Ratio (LDR)

Context:

HDFC Bank’s loan-to-deposit ratio (LDR) fell below 100 per cent for the first time since its merger.

Loan-to-Deposit Ratio (LDR)

The Loan-to-Deposit Ratio (LDR) is a key financial tool used by banks to assess their liquidity and financial health. It represents the ratio of a bank’s total loans to its total deposits. This ratio helps to determine how much of the bank’s deposits are being used to issue loans, indicating the bank’s ability to cover any potential withdrawals and its lending strategy.

Loan-to-Deposit Ratio (LDR) is calculated as:

LDR = (Total Loans / Total Deposits) × 100

Key Findings:

• Liquidity Indicator:
  • A high LDR means a larger portion of deposits is being used for lending, which could indicate that the bank may face liquidity issues if there is a sudden surge in withdrawal requests.
  • A low LDR implies that the bank is not utilizing its deposits efficiently to generate loans, potentially leading to lower profitability.
• Ideal Ratio:
  • There is no universally ideal LDR, as it depends on a bank’s business model and market conditions.
  • However, a typical LDR range is between 80% to 100%, where a ratio of 80% to 90% is considered stable.
  • Above 100% could be a sign of over-leveraging, where the bank is lending more than it can cover with its deposits, possibly leading to financial instability.
  • Below 80% may indicate that the bank is not taking full advantage of its deposits to generate returns through loans.
• Implications:
  • High LDR: May signal an aggressive lending strategy, potentially resulting in higher interest income but with higher risk.
  • Low LDR: Indicates conservative lending, possibly leading to lower risk but reduced income generation from loans.
• Regulatory View:
  • Regulatory authorities often monitor the LDR to ensure banks maintain adequate liquidity. An excessively high LDR may trigger concerns from regulators about the bank’s solvency and risk management.
• Impact on Bank’s Profitability:
  • A high LDR may contribute to higher interest income, but it also exposes the bank to more risk if borrowers default.
  • A low LDR might reflect safer operations, but could lead to lower earnings due to fewer loans being issued.

Example:

• If a bank has ₹500 crore in loans and ₹600 crore in deposits, the LDR would be:

LDR = (500 / 600) × 100 = 83.33%

This means that 83.33% of the bank’s deposits are being used to fund loans.

4. Stressed Loans

Context:

State-owned Bank of India is eyeing to sell ₹ 245.68 crore worth of non-performing loans of Uttar Pradesh-based Simbhaoli Sugars and ₹ 65.64 crore of bad loans in Visa Steel.

Stressed Assets

5. Currency Volatility

Why in News?

Rupee falls 4 paise to close at new record low of 85.83 against dollar.

Currency Volatility

Currency volatility refers to the frequency and magnitude of a currency’s value changes in relation to other currencies. For India, this means the rupee’s value against other currencies, such as the US dollar, changes frequently and significantly.

Currency volatility can have a number of impacts on the economy, including: 

• Trade and investment: 
  • Volatile exchange rates can make it uncertain for foreign investors, which can discourage them from investing in India. This can limit the availability of foreign capital for businesses and infrastructure.
• Cost of imports and exports: 
  • A depreciating rupee can make Indian exports cheaper, but it can also make imports more expensive. This can lead to inflation in the domestic economy.
• Economic stability: 
  • Volatile exchange rates can impact the overall stability of the economy.

The Reserve Bank of India (RBI) can help mitigate the negative impacts of currency volatility by: Making market interventions, Adjusting interest rates, and Using forex reserves.

RBI and it’s Monetary Policy

Economy

1. Savings Portfolio

A savings portfolio refers to the collection of various financial assets or investment products that an individual or household uses to save and grow wealth. The goal of a savings portfolio is to balance risk and return, meet short-term and long-term financial goals, and provide financial security.

Key Components of a Savings Portfolio:

• Cash and Bank Deposits:
  • Savings Accounts: Low-risk, liquid accounts used for short-term savings with minimal returns.
  • Fixed Deposits (FDs): A safer, interest-bearing product offered by banks, typically with fixed tenures.
• Equities (Stocks):
  • Mutual Funds: Investment in equity or hybrid funds, allowing exposure to the stock market with managed risk.
  • Direct Equity Investment: Buying shares of companies for higher returns, but at higher risk.
• Debt Instruments:
  • Bonds: Fixed-income securities issued by governments or corporations. They offer predictable returns with relatively lower risk.
  • Pension Funds: Long-term savings designed for retirement, with stable returns.
• Insurance Products:
  • Life Insurance: Offers financial protection while also serving as an investment through endowment or unit-linked insurance plans (ULIPs).
  • Health Insurance: Focused on covering medical expenses, though some health plans also offer savings components.
• Gold and Precious Metals:
  • A traditional asset class for wealth preservation, often used as a hedge against inflation.
• Real Estate:
  • Property Investment: Purchasing land or property as a way to build long-term wealth. Real estate is relatively stable but requires a larger capital investment.

Diversifying Savings Portfolio of Indian Households

Indian households have been diversifying their savings portfolios over recent years, gradually moving away from traditional physical assets (such as gold) and bank deposits. Instead, they are increasingly investing in:

• Mutual fund schemes
• Insurance products
• Pension plans

Facts To Remember

1. Eminent writer Na. D’Souza passes away

• Well-known novelist Na. D’Souza, a voice for the people of Malnad region, died in Mangaluru, Karnataka, on Sunday. He was 87.

2. Gauff and Fritz deliver for U.S. in the final against Poland

• Coco Gauff roared past Iga Swiatek to inspire Team USA before Taylor Fritz sealed the United Cup title with victory over Poland’s Hubert Hurkacz in Sydney on Sunday.

3. Sabalenka emerges champion in Brisbane

• World No. 1 Aryna Sabalenka downed Russian qualifier Polina Kudermetova to win the Brisbane International on Sunday.

4. Nuclear scientist RChidambaram, dies at 88

• Eminent physicist Rajagopala Chidambaram, who played a key role in the nuclear tests of 1974 and 1998, passed away on Saturday, according to the Department of Atomic Energy (DAE). He was 88.

5. AP/PTI Former Greek PM, Socialist leader Simitis dies at 88 

• Costas Simitis, former prime minister of Greece, co-founder of the Socialist PASOK party, and the architect of the country’s joining the common European currency, the euro, has died at age 88, state TV ERT reported.