Current Affairs – June, 2019

Latest Current Affairs June, 2019 with Current Affairs, news summary on current events of National and International importance of June, 2019 for Banking, SSC, CLAT, UPSC, State PCS, IBPS, Railways and other Competitive Examinations.

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Bimal Jalan led panel defers report on RBI surplus funds

The Reserve Bank of India (RBI) committee led by Bimal Jalan (former RBI governor) constituted for considering guidelines for transfer of central bank’s surplus funds to government delayed submitting its report after lack of consensus among its members. The panel was originally supposed to submit its report in April 2019.

Background

The RBI committee was appointed in December 2018 to review Economic Capital Framework (ECF) for central bank after then Union Ministry of Finance under Arun Jaitely advised RBI to transfer surplus funds to central government.

Arguments by Finance Ministry:  The finance ministry was of view that the buffer of 28% of gross assets maintained by RBI bank is well above global norm of about 14%. Thus, RBI board in its meeting held on 19 November 2018, decided to constitute a panel to examine Economic Capital Framework (ECF).

This led to loggerheads between government and RBI under its previous governor Urjit Patel (who later resigned) over Rs.9.6 lakh crore surplus capital that central bank keeps with itself.

About ECF Panel

Members: The six member committee headed by Bimal Jalan includes- Rakesh Mohan (former deputy governor of RBI) as vice-chairman, Subhash Chandra Garg (finance secretary), N S Vishwanathan (RBI deputy governor), and lastly RBI central board members Sudhir Mankad and Bharat Doshi.

Objective: The panel was entrusted to review best practices followed by central banks throughout the world in making assessment and provisions for risks.

Timeline: The ECF panel was required to submit its report to RBI within 90 days of its first meeting. The 1st meeting of ECF took place on 8 January 2019 following which the panel was given a 3 month extension.

Way Forward

The Bimal Jalan led panel will now meet one more time before submitting its report by end of June 2019 and the delay in finalising report which may be over difference of opinion will also be discussed.

Month: Categories: Business, Economy & Banking

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DRDO test fires Hypersonic Technology Demonstrator Vehicle

India’s Defence Research and Development Organisation (DRDO) conducted maiden test of an indigenously developed Hypersonic Technology Demonstrator Vehicle (HSTDV) from launch pad number-4 of Integrated Test Range (ITR) at Abdul Kalam Island off Odisha Coast.

About HSTDV

It is an unmanned scramjet demonstration aircraft. It is designed to cruise at Mach 6 speed with scramjet engine.

Background: In 2008, DRDO stated that through HSTDV project idea was to demonstrate performance of a scram-jet engine at an altitude of 15 km to 20 km, is on. Thus under this project, DRDO developed a hypersonic vehicle that will be powered by a scram-jet engine.

Applications: HSTDV is dual-use technology thus with a scramjet engine, HSTDV can cruise at Mach 6 speed and can have multiple civilian applications. It can be used for launching satellites at low cost and can also be available for long-range cruise missiles of future.

Key Highlights of Test

Method: In test conducted, a missile mounted with technology demonstrator vehicle is launched and vehicle is released only after missile reaches a certain altitude and velocity.

Reason for launch: The launch of technology demonstrator vehicle was undertaken to prove a number of critical technologies for futuristic missions and to validate several technologies including HSTDV.

Analysis: The HSDTV was supposed to fire and fly on its own after being carried to an altitude of around 30-40 km by solid rocket motor of an Agni-I ballistic missile in test but after launch, Agni-I booster went into an uncontrolled mode and could not achieve desired altitude. Some technologies have been validated while some remained inconclusive of which data is being analysed.

Scram-jet system v/s Ram jet system

In scram-jet technology, fuel combustion takes place in a chamber in missile at supersonic speeds while in a ram jet system, the system collects air it needs from atmosphere during flight at subsonic speeds and propellants burn in combustion chamber.

Month: Categories: Defence & SecurityUPSC

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