Must Read News Articles I 7th February 2020

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Reducing custodial deaths

The custodial deaths have been on the increase in the recent years as per data of NCRB. Since policement responsible for custodial deaths rarely get punished, they feel emboldened to continue using torture as the tool to get to the truth.

The article argues that until exemplary punishment is meted out to policemen who are responsible for custodial deaths after proper judicial enquiry, not much can be expected to ameliorate the situation. Proper interrogation techniques coupled with use of scientific methods to extract the truth from suspects can go a long way in reducing custodial deaths.

India, African countries resolve to fight terror

First India – Africa Defence Ministers Conclave held in Lucknow at the ongoing Defexpo. India and several other countries pledged to deepen cooperation to combat the growing threat of terrorism and preserve maritime security by sharing information, intelligence and surveillance.

Keeping the southern neighbour engaged

The article highlights that during the upcoming visit of Sri Lankan Prime Minister to India, New delhi is likely to talk to Colombo on the Tamil issue and counterbalance Beijing’s influence in the Indian Ocean.

India to study air corridors with Central Asian countries

External Affairs Minister S Jaishankar has said that India would like to explore setting up air corridors with five central Asian nations. The air corridors would include regular cargo flights with special clearing and custom facilities to expedite the movement of goods

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Rates to fall despite RBI’s status quo

The Monetary Policy Committee of RBI has decided to keep the repo rate unchanged at 5.15% in the wake of rise in inflation. However, it emphasised that there would be space for rate reduction. Repo Rate is the rate at which RBI lends money to commercial banks.

The central bank has taken two steps that could ease lending rates further. First, it opened a window to extend Rs. 1 lakh crore to the commercial banks at the repo rate, which is 5.15%. Second, banks has been exempted from maintaining the cash reserve ratio for home, auto, and MSME loans that are extended from Jan 31 to July 31.

Does the Budget do enough in providing a stimulus to growth?

The article discusses whether the proposed changes in the direct taxes and other measures as announced in Budget 2020-21 are likely to help spur consumption and investment in the economy.

Listening to the call of informal

The article argues that the government focus on making India a formal economy may prove adverse to the informal sector of India.

RBI to introduce long – term repo to boost monetary transmission

The Reserve Bank of India (RBI) has decided to introduce long-term repo operations (LTRO) to facilitate the transmission of monetary policy actions and flow of credit to the economy.

The central bank will conduct long-term repos of one- and three-year tenors of appropriate sizes for up to a total amount of Rs 1,00,000 crore at the policy repo rate from the fortnight beginning February 15, 2020.

The introduction of long term repo operations for one year and three year tenor will bring down cost of funds for banks without effectively cutting deposit rates.