Daily Current Affairs

To The Point Notes

1.RBI Guidelines on Wilful Defaulters

Key Points

Issue: RBI has issued new guidelines for classifying wilful defaulters.
Scope: Applies to banks, NBFCs, and financial institutions.
Target: Loans of ₹25 lakh and above.
Timeline: Lenders must identify wilful defaulters within 6 months of loan default.
Procedure:
- Mandatory internal investigation for loans above ₹25 lakh before transfer to other lenders or ARCs.
- Identification committee to examine evidence and issue show-cause notice.
Penalties:
- No new credit for wilful defaulters or associated entities for one year.
- Associated entities (promoters, directors) also penalized.
Wilful Defaulter:
- Borrower with capacity to repay but intentionally defaults.
- Diverts or siphons off loan funds.
- Default amount must be ₹25 lakh or more.

Objective

2.Liquidity Coverage Ratio (LCR)

Overview

Purpose: Measures a bank’s ability to meet short-term obligations during a crisis.
Calculation: Ratio of High-Quality Liquid Assets (HQLA) to short-term liabilities.
Current Status: India’s LCR is 130%, but RBI proposes to reduce it to 113-116%.

Impact

Short-term:
- Credit Growth: Potential slowdown due to banks being cautious with lending.
- Net Interest Margin (NIM): Might decrease due to reduced lending and need for higher liquid assets.
Long-term:
- Bank Resilience: Increased resilience to financial crises.
- Private Sector Banks: More impacted, requiring strategic adjustments.
- Deposit Mobilization: Banks might need to increase deposits or reduce lending.

3.INS Tabar and India-Russia Naval Cooperation

About INS Tabar:

Historical Background:

One of the three Talwar-class frigates built for the Indian Navy by Russia.
Equipped with advanced weaponry and sensors.
Represents the longstanding military and technological cooperation between India and Russia.

INS Tabar’s Participation in Russia’s Navy Day:

Russian President Putin acknowledged INS Tabar’s presence at the Navy Day celebrations in Petersburg.
Symbolizes the respect and cooperation between the two navies.
Reflects India’s commitment to strong naval ties with Russia.

Key Features:

Displacement: 4,035 tons
Speed: 30 knots
Maximum range: 4,850 nautical miles (at 14 knots), 1,600 nautical miles (at 30 knots)
Armament: BrahMos supersonic anti-ship cruise missile, Barak-1 missile
Sensors: Equipped with a variety of weapons and sensors

Naval Diplomacy and Interoperability:

Participation in Russia’s Navy Day exemplifies naval diplomacy.
Joint exercises and participation in each other’s significant events enhance interoperability between the two navies.
Crucial for maritime security, anti-piracy operations, and humanitarian assistance in the Indian Ocean Region.

Strategic Significance:

INS Tabar’s presence in Russia highlights the strategic dimension of Indo-Russian naval cooperation.
Both nations consider maritime security vital to their strategic goals.
Joint exercises, port visits, and high-level dialogues promote maritime capabilities and contribute to regional stability.