Security Current Affairs - 2020

RBI announces Special Liquidity Mutual Funds worth Rs 50,000 crores

On April 27, 2020, the Reserve Bank of India announced the special liquidity facility for mutual funds of Rs 50,000 crores. The Reserve Bank of India is increasing liquidity flow in capital markets as COVID-19 has imposed liquidity strains on mutual funds.

Highlights

The Special Liquidity Facility for Mutual Funds (SLF-MF) is to conduct repo operations for 90 days. Under the scheme, the banks shall submit their bids on any days between Monday and Friday.

Key Features

The Funds are to be used by the banks exclusively to meet the following liquidity requirements

  • To extend the loan period
  • To undertake purchases of investment-grade corporate bonds, debentures and certificates of Deposit. A debenture is a long-term security that yields fixed rate of interest secured against assets.
  • Under the scheme, the liquidity support even when exceeds 25% of total investment is to be permitted to be included as Held to Maturity.
  • The banks shall decide the repo or the lending rates of the mutual funds. However, the Reserve Bank of India is to hold the tenor of repo rates for a minimum of three months.

Held to Maturity

The Held to Maturity are debt securities that are acquired to hold it till maturity. It is usually recorded as amortized cost in the financial statements of a company.

March 4: National Security Day

On March 4, 2020, the Rashtriya Suraksha Diwas or National Security Day was celebrated throughout India. The Day is celebrated to honour the work of Indian Security Forces. This includes every security personnel, policemen, para military forces, guards, commandos, army officers, etc.

Highlights

The National Security Day is celebrated to promote and increase security forces. The Day reminds the citizens about their fundamental duties towards the country. Above all, the day pays homage to the security jawans who lost their lives for the country.

The Security Personnel are responsible for different types of security such as political, ecological, economic, computer, infrastructure, energy and natural resources.

Why March 4th?

The National Security Days is being observed on March 4 every year because, the National Security Council was established on the very same day

National Security Council

The Security Council looks into the economic, political and strategic security concerns of India. It was established in 1998 by the then Prime Minister Atal Bihari Vajpayee.