Daily News Simplified - DNS

07 06 19
Notes
SL. THE HINDU
TOPICS
NO. PAGE NO.

1 RBI waives NEFT/RGTS fee, to review ATM fees 17

1 Why dragon fish have transparent teeth 24

3 Rajnath inducted into Cabinet panel following controversy 01

4 Speaker endorses merger of 12 Cong. MLA’s with ruling TRS 01

5 African union suspends Sudan, Seeks civilian rule 16

6 No surprises 12
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Title RBI waives NEFT/RGTS fee, to review ATM fees (The Hindu Page 17)

Syllabus Prelims: Economy

Mains GS paper III: Economy
Theme NEFT and RTGS

Highlights Context: In a move to boost digital transactions, the RBI has decided to waive off charges for
fund transfer via RTGS/ NEFT.

Difference between RTGS and NEFT

RTGS
➢ RTGS - The acronym 'RTGS' stands for Real Time Gross Settlement, which can be
explained as a system where there is continuous and real-time settlement of fund-
transfers, individually on a transaction by transaction basis (without netting).
➢ 'Real Time' means the processing of instructions at the time they are received; 'Gross
Settlement' means that the settlement of funds transfer instructions occurs
individually.
➢ The RTGS system is primarily meant for large value transactions. The minimum
amount to be remitted through RTGS is ₹2,00,000/- with no upper or maximum
ceiling.
NEFT
➢ NEFT is an electronic fund transfer system in which the transactions received up to a
particular time are processed in batches. Contrary to this, in RTGS, the transactions
are processed continuously on a transaction by transaction basis throughout the
RTGS business hours.
➢ National Electronic Funds Transfer (NEFT) is a nation-wide payment system
facilitating one-to-one funds transfer. Under this Scheme, individuals, firms and
corporates can electronically transfer funds from any bank branch to any individual,
firm or corporate having an account with any other bank branch in the country
participating in the Scheme
➢ For being part of the NEFT funds transfer network, a bank branch has to be NEFT-
enabled.
➢ There is no limit – either minimum or maximum – on the amount of funds that could
be transferred using NEFT. However, maximum amount per transaction is limited to
₹ 50,000/-
➢ Even such individuals who do not have a bank account (walk-in customers) can also
deposit cash at the NEFT-enabled branches with instructions to transfer funds using
NEFT. However, such cash remittances will be restricted to a maximum of ₹ 50,000/-
per transaction.
➢ The NEFT system also facilitates one-way cross-border transfer of funds from India to
Nepal. This is known as the Indo-Nepal Remittance Facility Scheme.
➢ There are twenty three half-hourly settlement batches run from 8 am to 7 pm on all
working days of week
➢ There is no restriction of centres or of any geographical area within the country. The
NEFT system takes advantage of the core banking system in banks

IFSC code
➢ IFSC or Indian Financial System Code is an alpha-numeric code that uniquely
identifies a bank-branch participating in the NEFT system.
➢ This is an 11 digit code with the first 4 alpha characters representing the bank, and
the last 6 characters representing the branch.
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➢ The 5th character is 0 (zero). IFSC is used by the NEFT system to identify the
originating / destination banks / branches and also to route the messages
appropriately to the concerned banks / branches

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Dated: 07. June 2019 DNS Notes

Title Why dragon fish have transparent teeth (The Hindu -Page.24)

Syllabus Prelims: Environment

Theme Dragon fish

Highlights Context : A team of researchers led by the University of California San Diego have discovered
what's responsible for making the teeth of the deep-sea dragonfish transparent.
This unique adaptation, which helps camouflage the dragonfish from their prey, results from
their teeth having an unusually crystalline nanostructure because of which light is not able to
reflect off them thereby making them invisible.

About Dragonfish

➢ The deep sea dragonfish, sometimes known as the scaleless dragonfish, is a ferocious
predator that inhabits the deep oceans of the world.
➢ The deep sea dragonfish is one of the many species of deep sea fish that can produce
its own light through a chemical process known as bioluminescence.
➢ The light is produced by a special organ known as a photophore.
➢ It is believed that the fish can use these flashing lights in the dark waters to attract
prey and even to signal potential mates.
➢ The deep sea dragonfish lives in deep ocean waters at depths of up to 5,000 feet
(1,500 meters).
➢ Although dragonfish species are found in most oceans the world, the deep sea
dragonfish is limited mainly to the North and Western Atlantic Ocean and the Gulf of
Mexico.
➢ IUCN status: Least Concerned
➢ Bioluminescence is the production and emission of light by a living organism as the
result of a chemical reaction during which chemical energy is converted to light
energy.

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Title Rajnath inducted into Cabinet panel following controversy (The Hindu -Page. 01)

Syllabus Prelims: polity

Mains: GS Paper II: polity

Theme Cabinet committees

Highlights Context: Under the Transaction of Business Rules, the Government has reconstituted Cabinet
Committees.
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Title Speaker endorses merger of 12 Cong. MLA’s with ruling TRS (The Hindu -Page.01)

Syllabus Prelims : Polity

Mains: GS Paper II: Polity

Theme Anti-defection law / 10th schedule

Highlights Context: 12 out of the 18 party MLAs of Congress who defected to TRS, have been
recognised as party members of TRS.

The anti-defection law provided for in 10th schedule says that if 2/3rd members of a party
merge with other party, it will not be considered as defection.
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Title African union suspends Sudan, Seeks civilian rule (The Hindu -Page.16)

Syllabus Mains GS Paper II: International Relations

Theme African Union

Highlights Context: African union suspended Sudan following the bloody crisis and have asked for a
civilian rule in the violence prone area.

About African Union

➢ The African Union (AU) is a continental body consisting of the 55 member states that
make up the countries of the African Continent.
➢ It was officially launched in 2002 as a successor to the Organisation of African Unity
(OAU, 1963-1999)
➢ The AU is guided by its vision of “An Integrated, Prosperous and Peaceful Africa,
driven by its own citizens and representing a dynamic force in the global arena.”
➢ The work of the AU is implemented through several principal decision making organs:-
The Assembly of Heads of State and Government, the Executive Council,
the Permanent Representatives Committee (PRC), Specialised Technical
Committees (STCs), the Peace and Security Council and The African Union
Commission. The AU structure promotes participation of African citizens and civil
society through the Pan-African Parliament and the Economic, Social & Cultural
Council (ECOSOCC).
➢ Organs that handle judicial and legal matters as well as human rights issues
include:- African Commission on Human and Peoples’ Rights(ACHPR), African Court on
Human and Peoples’ Rights (AfCHPR), AU Commission on International
Law (AUCIL), AU Advisory Board on Corruption (AUABC) and the African Committee of
Experts on the Rights and Welfare of the Child. The AU is also working towards the
establishment of continental financial institutions (The African Central Bank, The
African Investment Bank and the African Monetary Fund)
➢ The Regional Economic Communities (RECs) and the African Peer Review
Mechanism are also key bodies that that constitute the structure of the African Union
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Title No surprises (The Hindu -Page.12)

Syllabus Mains GS Paper III: economy

Theme Cutting of repo rate by RBI

Highlights Context: On the basis of an assessment of the current and evolving macroeconomic
situation, the Monetary Policy Committee (MPC) has reduced the policy repo rate
under the liquidity adjustment facility (LAF) by 25 basis points to 5.75 per cent from
6.0 per cent with immediate effect.
➢ Consequently, the reverse repo rate under the LAF stands adjusted to 5.50 per cent,
and the marginal standing facility (MSF) rate and the Bank Rate to 6.0 per cent.
➢ The MPC also decided to change the stance of monetary policy from neutral to
accommodative.
➢ These decisions are in consonance with the objective of achieving the medium-term
target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2
per cent, while supporting growth.

Reasons for the rate cut:

Global Slowdown
➢ Slowdown in global economy reflecting further slowdown in trade and
manufacturing activity.
➢ Economic activity has slowed in many emerging market economies (EMEs) like the
Chinese economy grew at the same pace as in the previous quarter.
➢ The Russian economy, which had shown some signs of recovery in has weakened on
muted domestic activity and trade.
➢ Economic activity in South Africa contracted mainly by a sharp decline in
manufacturing activity.
➢ Brazil’s economy contracted first time since 2016 and there are fears that it could
return to recession.

Domestic Reasons
➢ Slowdown in domestic economy
➢ Gross fixed capital formation (GFCF) growth declined sharply to 3.6 per cent, after
remaining in double digits in the previous five quarters.
➢ Contraction in agriculture and allied activities
➢ Growth in manufacturing activity weakened sharply to 3.1 per cent from 6.4 per cent
in the previous quarter.
➢ Growth decelerated in 8 core industries
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