Daily GK Updates - 3rd February 2015

1. RBI releases Rs 42,000 crore to fund FY16 growth

i. Banks will have headroom to lend an additional Rs 42,000 crore because of Reserve Bank of India's move to bring down by 50 basis points the statutory liquidity ratio — the portion of deposits that banks must invest in government bonds. 

ii. Rajan left the repo rate — the rate at which it lends overnight funds to banks — unchanged at 7.75%. RBI also retained the cash reserve ratio — the portion of deposits that banks have to maintain with RBI — at 4%.

iii. The central bank expects that economy growth will pick up to 6.5% in FY16 which will result in an increased demand for funds in the banking sector. The cut in SLR is expected to help banks prepare their cash reserves to fund this growth. 

2. RBI doubles forex remittance limit to $250,000

i. The Reserve Bank of India has doubled the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) to $250,000 per person per year.

ii. This enhancement in limit comes after a review of the external sector outlook and as a further exercise in macro prudential management.

iii. RBI had reduced the eligibility limit for foreign exchange remittances under the Liberalised Remittance Scheme (LRS) to USD 75,000 in 2013 as a macro-prudential measure. 

iv. With stability in the foreign exchange market, this limit was enhanced to USD 125,000 in June 2014.

3. Terror charter against Pak at RIC Summit

i. In order to corner Pakistan for sheltering and facilitating terrorists involved the 26/11 carnage and other attacks in the country, India seeks to move a resolution in the UN to punish those who shelter and finance terrorism.

ii. China and Russia decided to back India for moving this proposal at the United Nations that essentially goes against Pakistan on the issue of terrorism.

iii. At the RIC summit - attended by Chinese foreign minister Wang Yi, his Russian counterpart Sergey Lavrov and Swaraj - a joint communique was issued which "underlined the need to bring to justice perpetrators, organizers, financiers and sponsors of terrorist acts". 

4. Modi govt to bring new scheme to replace JNNURM

i. The existing programme to modernize urban infrastucture will be discontinued and a new plan will be introduced by the Narendra Modi government.

ii. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was introduced by the previous United Progressive Alliance (UPA) government in 2005 to improve civic infrastructure and services.

iii. It will focus on spatial planning, liquid and solid waste management and public transport

5. Madhya Pradesh gets national award for excellent work in MGNREGA

i. Madhya Pradesh has been awarded the 10th national award for excellent work in Mahatma Gandhi National Rural Employment Guarantee Act-MGNREGA. 

ii. Union Rural Development Minister Virendra Singh presented the award to state’s Panchayats and Rural Development Minister Gopal Bhargava at the MGNREGA summit held in New Delhi.

iii. 74 percent construction of permanent assets has been done through MGNREGA in the state. 

6. France win record fifth world handball title

i. France has became the first team in handball history to win five World Championships. 

ii. In the finals, they defeated hosts and surprised finalists Qatar.

iii. The win means France's are now world, European and Olympic champions.