24 Apr, 2020

  • RBI to restart Operation Twist to manage yields (Indian Economy) (Bond market stabilisation)
  • Repo auction gets poor response (Indian Economy) (Financing NBFC)
  • Fishing in troubled waters during a pandemic (International Relation) (South China Sea)
  • Australia pitches for trilateral ties (International relation) (Regional Groupings)
  • Question of the day (Indian Economy)

Prelims Quiz

    Solution.

    • Total Marks 0
    • Total Scored 0
    • Total Attempted 0
    • Total Correct 0
    • Total Wrong 0
    • Total Not Attempted 0
    0%
    Description

    RBI TO RESTART OPERATION TWIST TO MANAGE YIELD 

    The central bank will buy 10,000 crore of bonds maturing between 2026 and 2030 and sell the same amount of T­-bills.  Following the announce­ment, the yields on the 10­ year bonds dropped by 20 basis points (bps). Such open market opera­tions are known as ‘Opera­tion Twist,’ which was used by the RBI in December last year for the first time. 

    • Operation Twist of RBI
    • RBI buying long term bonds from government
    • RBI selling short term securities
    • Lower longer-term yields
    • Government to pay lower interest rates

     

    REPO AUCTION GET POOR RESPONSE  

    The first auction of the se­cond tranche of Reserve Bank of India’s (RBI) target­ed long term repo opera­tions (LTRO 2.0), which were meant for liquidity sup­port to non­-banking finan­cial companies, (NBFCs), re­ceived poor response as total value of bids received from banks was almost 50% less than the notified amount. 

    • Target­ed long term repo opera­tions (LTRO 2.0)
    • liquidity sup­port to NBFC
    • Funds under LTRO provided under Repo Rate
    • ensures flow of credit to the economy
    • Benefits of the LTROs

     

    FISHING IN TROUBLED WATERS DURING PANDEMIC – ARTICLE

    There is growing contestation that China has started flexing its muscle in the disputed South China Sea amidst the COVID 19 crisis the region in facing.

    • Geopolitics of South China Sea
    • Disputed islands
    • Claimant Countries in South China Sea
    • China’s Nine Dash Line

     

    AUSTRALIA PITCHES FOR TRILATERAL TIES   

    Australian High Commissioner has said that India and Australia would face common challenges in the Indo-Pacific as COVID-19 was stretching much of the world’s governmental capacity. He called for greater cooperation, especially among India, Australia and Indonesia.

    • Common challenges for India & Australia in Indo-Pacific
    • Geopolitical importance of Indian and Pacific Ocean
    • India’s Indo-Pacific Vision
    • SAGAR (Security and Growth for All in the Region) vision
    • Act East Policy
    • Indo-Pacific Oceans Initiative
    • ASEAN Outlook on the Indo-Pacific
    • Secure, open and prosperous Indo–Pacific
    Comments

    Arsh Singh . 7 months ago

    Shouldn't the answer for Q1 be B?

    HEMANT VIVEK SHIMGEKAR 7 months ago

    No because they will purchase from financially sound nbfc and not financially distressed

     

    So Jao 7 months ago

    Sir, thank you so much for your efforts, The easy and simple way you explains the things along with your capability to engage us while watching video is amazing :)

    Bhavani 7 months ago

    spratly islands dispute is among china,vietnam,malaysia, philippines, brunei...shouldn't it be vietnam inplace of indonesia?

    Bhavani 7 months ago

    let me correct if i am wrong.

    Jayakrishna kumar S 7 months ago

    @Bhavani. Yes, you're right.