Current Affairs of 20th February

International Affairs

1. The India-Japan Army exercise “Dharma Guardian” began in Japan for its fourth edition.

The fourth iteration of the joint annual Indian-Japanese military training exercise “Dharma Guardian” began on February 17, 2023, at Camp Imazu in the Shiga province of Japan. The exercise was supposed to last until March 2, 2023.

 

Objective: to improve the level of defence cooperation between India and Japan and strengthen bilateral relations.

 

Participants: The exercise has seen the participation of troops from the Garhwal Rifles Regiment of the Indian Army and an infantry regiment from the Middle Army of the Japan Ground Self-Defense Force (JGSDF).

 

Key Points:

 

Best practices for conducting tactical operations under a UN (United Nations) mandate will be shared by the two armies, as will the development of interoperability, camaraderie, and friendship.

 

In order to enhance interoperability in planning and carrying out, the exercise includes joint platoon-level training on operations in jungle and semiurban/urban terrain.

 

Joint planning, joint tactical drills, and the fundamentals of establishing integrated surveillance grids, including the use of aerial assets, will be among the missions that both armies will carry out.

 

The crews of the two JMSDF (Japan Maritime Self-Defense Force) ships Uraga and Awaji visited training facilities and activities at the Training Command of the Indian Navy during their port call at Kochi, Kerala.

2. STRI Index from OECD: 47th-ranked India The United Kingdom and Japan took the first two spots.

In the Organization for Economic Cooperation and Development (OECD) report titled “OECD Services Trade Restrictiveness Index (STRI):,” India came in 47th place.

 

Policy trends through 2023,” which focuses on the most important outcomes of the OECD STRI in 2022.

 

Key Points:

 

India’s new ranking of 47 out of 50 countries demonstrates the country’s increased market restrictions.

 

The 38 OECD members, as well as China, India, Indonesia, Kazakhstan, Malaysia, Peru, Russia, Singapore, South Africa, Thailand, and Vietnam, are included in the OECD STRI index.

 

India comes in last place behind Thailand, Indonesia, and Russia.

 

In 2022, the Netherlands, Japan, and the United Kingdom (UK) had the lowest average regulatory barriers to services trade across sectors.

 

In 2022, Viet Nam, Japan, and Kazakhstan’s economies had the greatest impact on the STRI as a result of trade liberalization.

3. The World Bank’s Report: Damaged cognitive development and a generation’s lifetime earnings are both caused by COVID-19.

The World Bank’s report titled “Collapse and Recovery: How the COVID-19 Pandemic Destroyed Human Capital and What to Do About It,” the COVID-19 pandemic destroyed a significant amount of human capital during crucial life stages, particularly for children and young people in developing and underdeveloped nations.

 

Important Takeaways from the Report 

 

The report looked at how the pandemic affected children at three crucial developmental ages using global data: young children (ages 0 to 5), adolescents (ages 15 to 24), and those who are in school

 

It came to the conclusion that students in South Asia could lose up to 14.4% of their future earnings as a result of education shocks brought on by COVID-19.

 

South Asian schools were closed completely or partially for 83% of the time between April 1, 2020, and March 31, 2022, significantly longer than the global average of 52%.

 

According to the report, youth employment suffered significantly from COVID-19 as well.

In 2020, young people saw a 15% and 12% decline in earnings, respectively.

 

Key Points:

 

The World Bank has provided approximately USD 11 billion in South Asian pandemic response financing in the two years since the pandemic began (April 2020–April 2022).

 

The sum includes USD 2.7 billion for over 857 million vulnerable people’s social safety nets, USD 2.5 billion for 15 health projects, USD 2.80 billion for 12 education projects, and USD 1 billion for vaccine purchase and distribution.

Banking and Finance

1. The Reserve Bank of India (RBI) has released its final guidelines regarding banking interest rate risk.

The final “Interest Rate Risk in Banking Book” (IRRBB) guidelines issued by the Reserve Bank of India (RBI) require banks to measure, monitor, and disclose their IRRBB exposure, which may have an effect on lenders’ capital base and future earnings.

The Basel Committee on Banking Supervision (BCBS)’s revised framework is in line with the final IRRBB guidelines.

 

In due course, we will announce the guidelines’ implementation date.

The term “Interest Rate Risk in Banking Book” (IRRBB) refers to the risk that unfavourable changes in interest rates pose to the banking book positions of banks, either now or in the future. These changes could have an impact on the capital and earnings of the banks.

A bank’s current capital base and/or future earnings can be negatively impacted by an increase in IRRBB.

 

Key Points:

 

In the banking book, banks are required to be prepared to measure, monitor, and disclose their exposure to interest rate risk.

 

The bank’s board is responsible for determining the nature and extent of the bank’s IRRBB exposure, as stated in the guidelines.

 

ALCO (Asset-Liability Committee), which should regularly assess the nature and extent of the bank’s IRRBB exposure, may be given management and monitoring of IRRBB by the board.

 

The Board/ALCO is in charge of valuing positions, evaluating performance, and putting adequate limits on IRRBB.

It includes the institution’s IRRBB analysis’s key underlying assumptions and procedures for updating interest rate shock and stress scenarios.

 

A risk appetite statement that outlines the policies and procedures for limiting and controlling IRRBB must be clearly defined and approved by the board of directors.

 

Significant hedging or risk management measures must be approved before they can be implemented.

2. Paytm Payments Bank is the first institution in India to introduce the UPI LITE feature.

UPI LITE, a feature enabled by the National Payments Corporation of India (NPCI) for multiple small-value UPI transactions, has been launched by Paytm Payments Bank Limited (PPBL).

 

As part of its commitment to fostering innovation, PPBL has implemented a UPI LITE feature as the first payments bank. Without requiring a UPI PIN, UPI Lite allows for transactions of up to Rs 200.

 

UPI LITE In September 2022, the NPCI-designed UPI LITE feature was made available by the Reserve Bank of India (RBI).

 

By facilitating faster and safer real-time small-value payments, UPI LITE enhances the customer experience.

 

Once loaded, a UPI LITE wallet enables instant transactions of up to Rs. 200, which made the entire process quick and easy.

 

No more than Rs. UPI LITE can have 2,000 added twice daily, bringing the total daily usage to Rs. 4,000.

 

All credits to UPI Lite, including refunds, will be sent directly to the customers’ bank accounts at this time, and only debits from the customers’ wallets are allowed.

 

Note: Official data from the NPCI indicate that approximately 50% of all daily UPI transactions in India are for less than Rs, and that approximately 75% of the total volume of retail transactions in India, including cash, are for less than Rs 100. 200.

 

Key Points:

 

The feature makes it possible to conduct faster real-time transactions with a single click through Paytm, supporting PPBL’s efforts to encourage the use of digital payments throughout India.

 

Small transactions are also removed from the bank passbook because they are now only shown in the Paytm balance and history section rather than the bank passbook.

 

The customer experience will be enhanced, transaction success rates will rise, and PPBL will be one step closer to processing a billion transactions per day on the UPI platform as a result.

 

With more than 1,726.94 million transactions in December 2022, PPBL remained the largest beneficiary bank of UPI for 19 consecutive months, surpassing all other major Indian banks.

 

With 386.50 million registered transactions, PPBL ranks among the top 10 remitter banks for UPI transactions.

 

Additionally, it is a major acquirer bank and issuer of the National Electronics Toll Collection (NETC) FASTag.

3. Vikramaditya Singh Khichi was appointed to the Advisory Committee on RCL by the RBI.

Vikramaditya Singh Khichi, a former Executive Director (ED) of Bank of Baroda (BoB), was appointed to the Advisory Committee on Reliance Capital Limited Ltd (RCL) on February 17, 2023.

 

Background:

 

To assist Nageswara Rao Y, Administrator of RCL, in the operations of the financial service providers during the corporate insolvency resolution process, RBI established an Advisory Committee on December 7, 2021, in accordance with Rule 5 (c) of the Insolvency and Bankruptcy (Insolvency and Liquidation Proceedings of Financial Service Providers and Application to Adjudicating Authority) Rules, 2019.

 

Members: The Advisory Committee, which included Sanjeev Nautiyal, an ex-DMD (Deputy Managing Director) at State Bank of India, Srinivasan Varadarajan, an ex-DMD at Axis Bank, and Praveen P Kadle, an ex-MD and CEO at Tata Capital Limited, was established in December 2021.

 

RBI has decided to appoint Vikramaditya Singh Khichi as a member of the Advisory Committee immediately in light of Srinivasan Varadarajan’s resignation from the committee on February 17, 2023.

 

Throughout the corporate insolvency resolution process, the Advisory Committee will provide the Administrator with advice regarding RCL’s operations.

Economy and Business

1. Versuni replaces Philips Domestic Appliances worldwide.

After Royal Philips sold its domestic appliance business to Hillhouse Capital in September 2021, Philips Domestic Appliances, which has its headquarters in the Netherlands, has changed its name to “Versuni.” The Domestic Appliances company became independent after the sale.

 

The company will continue to use the Philips consumer brand, Saeco, Gaggia, and Philips Walita, on its products and services as a licensee of Royal Philips.

 

Throughout the course of 2023, the brand’s new name will be used worldwide, supported by a brand-new and distinct visual identity.

 

Kitchen appliances, coffee, climate control, garment care, and floor care are all part of the company’s portfolio.

2. Rail Post Gati Shakti Express Cargo Service is a joint parcel service between Indian Railways and India Post.

The joint parcel service known as the “Rail Post Gati Shakti Express Cargo Service” has been officially launched by India Post and the Indian Railways. The service begins in four areas: Kolkata to Delhi; Guwahati to Bangalore; To Muzaffarpur from Surat; and to Hazrat Nizamuddin in Hyderabad. A total of 15 industries will be covered in the first phase.

 

By affixing a VPU to Tapti Ganga Express, a pilot weekly service from Surat to Varanasi was launched on March 31, 2022.

 

From pick-up to delivery, India Post will serve as the customer’s primary point of contact for the shipment.

Science and Technology

1. To expedite the passport verification process, MEA launched the “mPassport Police App.”

The “mPassport Police App” was launched by the Indian government’s Ministry of External Affairs (MEA) to simplify and speed up the process of issuing passports. This application will

likewise, assist with the ideal updation and issuance of travel papers.

 

Background:

 

One of the essential components of the system for issuing passports is police verification.

 

The passport issuance system’s process has been streamlined and accelerated in a number of ways.

 

To further expedite the procedure, the MEA introduced the “mPassport Police App.” 

 

Additional information:

 

Union Home Minister Amit Shah gave 350 mobile tablets to members of the Delhi Police Special Branch in honour of the 76th Delhi Police Raising Day.

 

As a result, police verification and report submission will no longer require paper during the entire process.

 

Identification confirmation utilizing tablets will decrease the check time from 15 days to

5 days, really decreasing the identification issuance timetable by 10 days.