Daily Current Affairs for UPSC Civil Services Exam – 21 August 2020

In Today’s News:

  1. Monetary Policy Committee minutes released.
  2. National Strategy for Financial Education:2020-2025 – a document released.
  3. Swachh Survekshan 2020.

1. Monetary Policy Committee minutes released

News Summary

The minutes of the Monetary Policy Committee(MPC) was released on 20th August 2020. According to the minutes, all the six members of the MPC opted for Status quo and left the interest rates unchanged. RBI governor has said that Monetary arsenal must be kept dry and used judiciously for promoting growth in the economy which has been hard hit by COVID-19 pandemic.

Prelims GS – Economic Development

Monetary Policy Committee:
  • The Monetary Policy Committee (MPC) is a committee of the Reserve Bank of India, headed by the RBI Governor, which is entrusted with the task of fixing the benchmark policy interest rate (repo rate) to contain inflation within the specified target level.
  • Monetary Policy Committee will have six members:
    • the RBI Governor (Chairperson),
    • the RBI Deputy Governor in charge of monetary policy,
    • one official nominated by the RBI Board and
    • the remaining three members would represent the Government of India.
  • MPC was set up to task RBI with the responsibility for price stability and inflation targeting.
  • The MPC takes decisions based on the majority vote (by those who are present and voting). In case of a tie, the RBI governor will have the second or casting vote.
  • The decision of the Committee would be binding on the RBI.

2. National Strategy for Financial Education:2020-2025 – a document released.

News Summary

National Strategy for Financial Education:2020-2025(NSFE) document was released by the Reserve Bank of India on 20th August 2020.

Mini Insights

Mains GS3 – Economic Development

National Strategy for Financial Education:
  • National Strategy for Financial Education(NFSE): 2020-2025, a document released by RBI has recommended a ‘5 C’ approach for financial education in the country.
  • Its aim is to create a financially aware and empowered India.
  • This ‘5 C’ approach emphasizes on the;
    • Development of relevant Content (including Curriculum in schools, colleges, and training establishments),
    • Developing Capacity among the intermediaries involved in providing financial services,
    • Leveraging on the positive effect of Community-led model for financial literacy through appropriate Communication Strategy,
    • Enhancing Collaboration among various stakeholders.
  • NSFE:2020-2025 has been prepared by the National Centre for Financial Education (NCFE) in consultation with all the Financial Sector Regulators (RBI, SEBI, IRDAI, and PFRDA), DFS and other Ministries of Govt. of India and other stakeholders (DFIs, SROs, IBA, NPCI) under the aegis of the Technical Group on Financial Inclusion and Financial Literacy under the Chairmanship of Deputy Governor, RBI and under the Financial Stability and Development Council (FSDC-Chair: Hon’ble Union Finance Minister).
  • The NSFE document intends to support the Vision of the Government of India and Financial Sector Regulators by empowering various sections of the population to develop adequate knowledge, skills, attitude, and behavior which are needed to manage their money better and plan for their future. The Strategy recommends the adoption of a Multi-Stakeholder Approach to achieve the financial well-being of all Indians.
Strategic objectives laid in NSFE:2020-2025:
  • To achieve the vision of creating a financially aware and empowered India, the following Strategic Objectives have been laid down in the NSFE document:
    • i. Inculcate financial literacy concepts among the various sections of the population through financial education to make it an important life skill
    • ii. Encourage active savings behavior
    • iii. Encourage participation in financial markets to meet financial goals and objectives
    • iv. Develop credit discipline and encourage availing credit from formal financial institutions as per requirement
    • v. Improve usage of digital financial services in a safe and secure manner
    • vi. Manage risk at various life stages through relevant and suitable insurance cover
    • vii. Plan for old age and retirement through coverage of suitable pension products
    • viii. Knowledge about rights, duties, and avenues for grievance redressal
    • ix. Improve research and evaluation methods to assess progress in financial education

Click here to view the PDF of the NSFE document of RBI.

3. Swachh Survekshan 2020

News Summary

Swachh Survekshan 2020 report was released by the Union Ministry of Housing and Urban Affairs. Indore has been ranked the cleanest city in the country according to the report.

Prelims GS – Governance

Swachh Survekshan 2020:
  • Swachh Survekshan 2020 is the fifth edition of the annual cleanliness urban survey conducted by the Ministry of Housing and Urban Affairs (MoHUA).
  • It is the world’s largest cleanliness survey.
  • It is a completely digitalized and paperless survey.
  • 4242 cities are covered in this report.
  • It is 28 days timebound nationwide survey duration

Click here to view the rankings in all categories on the official Swachh Survekshan website.


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