5. iRAD Project

  1. The Integrated Road Accident Database (iRAD) project, a Central government initiative that aims to improve road safety, has been officially launched in Mizoram.
  2. The iRAD project, an initiative of the Ministry of Road Transport and Highway
  3. It is funded by the World Bank, aims to establish an accurate accident data collection mechanism to improve road safety in the country, it said.
  4. The project will collect and analyze data from across the country to understand the causes of accidents and formulate new policies to enhance road safety
  5. Many road accidents occur due to rash driving. Such mishaps could be avoided if safety measures are taken.
  6. The State police is currently implementing projects such as Crime and Criminal Tracking Networks and Systems (CCTNS) and Emergency Response Support System (ERSS),
  7. More initiatives such as Inter-Operable Criminal Justice System (ICJS) and National Automated Fingerprint Identification System (NAFIS) would soon be launched

6. RBI Permitted to use ARR

The Reserve Bank of India (RBI) has permitted banks, which are authorized to deal in foreign exchange, to use any other widely accepted/alternative reference rate (ARR) in place of the London interbank offered rate (LIBOR) for interest payable in respect of export/import transactions.

The central bank has issued a circular in this regard to authorized dealer banks in view of the impending cessation of LIBOR as a benchmark rate.

LIBOR

  1. The London Interbank Offered Rate (LIBOR) is a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.
  2. LIBOR serves as a globally accepted key benchmark interest rate that indicates borrowing costs between banks.
  3. The rate is calculated and will continue to be published each day by the Intercontinental Exchange (ICE), but due to recent scandals and questions around its validity as a benchmark rate, it is being phased out.
  4. According to the Federal Reserve and regulators in the UK, LIBOR will be phased out by June 30, 2023, and will be replaced by the Secured Overnight Financing Rate (SOFR).

Reference Rate

  1. A reference rate is a benchmark interest rate used to determine other interest rates
  2. .For example, LIBOR provides an indication of the average rates at which LIBOR panel banks could obtain wholesale, unsecured funding for set periods in particular currencies.
  3. Lenders then use this rate to determine interest rates for a variety of debt instruments – such as mortgages and commercial loans – and financial products like derivatives.
  4. The need for benchmarks to be based on transparent, arms-length transactions has been reinforced by global regulators, including The Financial Stability Board and the International Organization of Securities Commissions.
  5. In response, the industry has started to utilize a raft of alternative reference rates, and from the AONIA (Australian Interbank Overnight Cash Rate) to SARON (Swiss Average Rate Overnight) strategies are in place to embrace new benchmarks.