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Type: Prelims Only

  • What are Picoflare Jets?

    picoflares

    Central Idea

    • A recent revelation from the Solar Orbiter Aircraft, a collaborative endeavour between the European Space Agency and NASA, has illuminated the Picoflare jets erupting from the sun’s outer atmosphere.
    • These jets, marked by their supersonic emergence and brief durations of 20 to 100 seconds, have captured the attention of scientists and space enthusiasts alike.

    What are Picoflare Jets?

    • Picoflare jets, observed amidst emissions from the observed coronal hole, are diminutive in scale but pack a potent punch.
    • Their ephemeral existence belies their significance, as scientists have calculated that they contribute a substantial portion of the solar winds’ energy.
    • These solar emanations earned their name, “picoflare jets,” owing to their energy levels, which hover around one-trillionth of the solar flares’ immense energy potential.
    • Solar winds, driven by strong gusts, can not only craft auroras in Polar Regions but also disrupt Earth’s magnetic field and jeopardize electronic systems on satellites and terrestrial circuits.

    About Solar Orbiter Aircraft

    • A Stellar Journey: Launched in 2020, the Solar Orbiter Aircraft embarks on a mission to capture unprecedented images of the Sun, propelling closer than any previous spacecraft.
    • Instrumentation Excellence: Equipped with six remote-sensing instruments and four sets of in situ instruments, the spacecraft is primed for comprehensive solar exploration.
    • Mission Objectives: The Solar Orbiter Aircraft carries two primary objectives: to scrutinize the Sun’s 11-year cycle of magnetic activity ebbs and flows and to delve into the mysteries of the solar corona, the upper echelon of the Sun’s atmosphere.

  • Non-Reciprocity: The physics of letting waves go one way but not the other

    reciprocity

    Central Idea

    • Reciprocity, a fundamental principle of physics, dictates that if a signal can travel from Point A to Point B, it can also journey from Point B to Point A.
    • This intuitive concept holds significance in various aspects of daily life and serves as the basis for many technological breakthroughs and challenges.

    Exploring Reciprocity

    • The Principle Defined: Reciprocity posits that a signal transmitted from a source (Point A) to a destination (Point B) can also travel in the reverse direction by merely swapping the positions of the source and destination.
    • Everyday Analogies: Familiar scenarios, such as shining a torchlight or observing an object under a streetlight, exemplify reciprocity in action.
    • Counterintuitive Instances: Some situations defy intuition, like interrogation scenes in movies where one party can see through a window while the other cannot, or observing someone walking in darkness.

    Applications in Antennas and Beyond

    • Antennas: Reciprocity plays a pivotal role in antenna technology, enabling both the transmission and reception of signals. Engineers utilize reciprocity to assess antennas’ reception quality, simplifying testing processes for radar, sonar, seismic surveys, and MRI scanners.
    • Challenges in Spying: While reciprocity aids signal reception, it poses challenges in espionage, as it allows signals to be captured from an enemy base while potentially revealing one’s own location.
    • One-Way Traffic: To counteract reciprocity, scientists employ devices composed of components with specific properties. These devices break reciprocity, enabling signals to travel in one direction only.

    Diverse Ways to Break Reciprocity

    • Magnet-Based Non-Reciprocity: Utilizing wave plates and Faraday rotators, this method disrupts reciprocity for electromagnetic waves.
    • Modulation: By continuously altering a medium’s parameters in time or space, modulation offers a means to control signal transmission.
    • Nonlinearity: Varying a medium’s properties based on signal strength and direction introduces nonlinearity, another avenue to break reciprocity.

    Revolutionizing Technologies

    • Quantum Computing: Non-reciprocal devices find applications in quantum computing, where they amplify signals to detect quantum states effectively.
    • Miniaturization: The trend towards nanoscale and microscale devices includes non-reciprocal components, some as small as a strand of hair divided by a thousand. These miniature devices promise contributions to fields like self-driving cars, where efficient signal monitoring is essential for safety.

  • Greshams Law: What happens when governments fix Currency Exchange Rates?

    gresham's law

    Central Idea

    • The law, named after English financier Thomas Gresham, came into play most recently during the economic crisis in Sri Lanka last year.
    • The Central Bank of Sri Lanka has fixed the exchange rate between the Sri Lankan rupee and the U.S. dollar

    About Gresham’s Law

    • Thomas Gresham: The law is named after Thomas Gresham, an English financier who advised the English monarchy on financial matters. It extends beyond paper currencies and applies to commodity currencies and various goods.
    • Bad money drives out good: This maxim illustrates a phenomenon that occurs when government-fixed exchange rates diverge from market exchange rates, causing undervalued currency to be withdrawn from circulation.
    • Arbitrarily Fixed Prices: Gresham’s Law operates whenever governments arbitrarily set prices, causing a commodity to become undervalued compared to its market exchange rate. This undervaluation drives the commodity out of the formal market.
    • Black Market: In such scenarios, the only way to acquire the undervalued commodity is through the black market, as it is no longer available through official channels.
    • Goods Outflow: Countries can also experience the outflow of certain goods when their prices are forcibly undervalued by the government.

    Application to Commodity Money

    • Gold and Silver Coins: Gresham’s Law is particularly evident when a government fixes the exchange rate of commodity money, like gold and silver coins, well below their market value. In response, people may hoard or melt these coins to obtain their intrinsic value, which is higher than the government-set rate.

    Recent Example in Sri Lanka

    • Economic Crisis in Sri Lanka: Gresham’s Law was observed during the economic crisis in Sri Lanka, where the central bank fixed the exchange rate between the Sri Lankan rupee and the U.S. dollar.
    • Rupee Overvaluation: The government mandated that the price of the U.S. dollar should not exceed 200 Sri Lankan rupees, even though the black market rate indicated a higher value. This overvaluation of the rupee led to a decline in the supply of dollars and pushed the U.S. dollar out of the formal foreign exchange market.
    • Black Market Transactions: Individuals seeking U.S. dollars for foreign transactions were compelled to purchase them from the black market at rates exceeding 200 Sri Lankan rupees per dollar.

    Conditions for Gresham’s Law to Apply

    • Government-Imposed Fixed Rates: Gresham’s Law operates when government authorities establish and enforce fixed exchange rates between currencies.
    • Effective Implementation: Effective enforcement of these rates by authorities is essential for the law to take effect.

    Anti-thesis Concept: Thiers’ Law

    • “Good Money Drives Out Bad”: In the absence of government-imposed exchange rate fixes, the opposite phenomenon occurs. People tend to abandon currencies they perceive as of lower quality in favour of those they consider better, leading to the dominance of “good money.”
    • Thiers’ Law: This concept, known as Thiers’ Law and named after French politician Adolphe Thiers, complements Gresham’s Law.

  • Assistance to States during Natural Disasters: How It Works

    Central Idea

    • In the wake of natural disasters, states often request assistance from the central government.
    • Himachal Pradesh CM recently requested for a special disaster relief package and urged the designation of the calamity as a ‘national disaster.’

    Natural Disaster Mitigation in States

    • Legal Framework: The 2005 Disaster Management Act provides the legal framework for addressing disasters, whether natural or man-made.
    • Defining disaster: It defines a “disaster” as an event causing substantial loss of life, human suffering, property damage, or environmental degradation beyond the community’s coping capacity.
    • National Disaster Management Authority (NDMA): The Act established the NDMA, headed by the Prime Minister, and State Disaster Management Authorities (SDMAs) led by Chief Ministers. These bodies, along with district-level authorities, form an integrated disaster management setup in India.
    • National Disaster Response Force (NDRF): The Act led to the creation of the NDRF, comprising several battalions or teams responsible for on-ground relief and rescue operations in various states.

    Understanding the National Disaster Relief Fund (NDRF)

    • Mention in the Act: The NDRF is referenced in the 2005 Disaster Management Act and plays a crucial role in providing disaster relief.
    • State Disaster Relief Funds (SDRFs): States have their own SDRFs, which are the primary funds available for responding to notified disasters. The Central Government contributes 75% to SDRFs in general states and 90% in northeastern and Himalayan states.
    • Utilization of SDRFs: SDRFs are allocated for immediate relief efforts following notified calamities, including cyclones, droughts, earthquakes, fires, floods, tsunamis, and more.
    • Central Assistance: In the event of a severe calamity where state SDRF funds are insufficient, additional central assistance can be provided by the National Disaster Response Fund (NDRF).

    Who determines a Severe Calamity?

    • Procedure: States follow a specific procedure to classify a calamity as “severe.” This involves submitting a memorandum detailing sector-wise damage and fund requirements. An inter-ministerial central team assesses the damage on-site.
    • Committee Approval: Specific committees review these assessments and submit reports. A High-Level Committee must approve the immediate relief amount to be released from the NDRF.
    • Criteria: The classification of a calamity as “severe” considers factors such as intensity, magnitude, assistance needs, and more.

    Additional Funds for Disaster Mitigation

    • Funds Allocation: Funds for NDRF and SDRFs, allocated for preparedness, mitigation, and reconstruction, are part of budgetary allocations.
    • Financing mechanism: The 15th Finance Commission introduced a new methodology for state-wise allocations, considering factors like past expenditure, risk exposure, hazard, and vulnerability.
    • Utilization: NDRF and SDRF funds are released in two equal instalments, typically with requirements like Utilization Certificates. However, in urgent situations, these requirements can be waived.
    • State Disaster Mitigation Fund (SDMF): This fund supports activities such as forest restoration and public awareness. It received an allocation of Rs 32,030 crore from the 15th Finance Commission.
    • National Disaster Mitigation Fund (NDMF): The NDMF, amounting to Rs 13,693 crore, is dedicated to national disaster mitigation efforts.

  • Ancient India-Europe Maritime Trade Route

    europe trade

    Central Idea

    India- Europe: Glimpse into Historical Trade Route

    • Early Discoveries: The trade between Rome and India during antiquity was established by early excavations. Sir Mortimer Wheeler’s work at Arikamedu in the 1930s and 40s confirmed the existence of Indo-Roman trade in the 1st century CE.
    • Recent excavations: Ongoing archaeological excavations, such as those at Muziris in Kerala and Berenike in Egypt, continue to yield new evidence.
    • Revised Understanding: However, early interpretations often overlooked the agency of Indian merchants and ship owners in this trade. Recent discoveries have expanded and corrected our understanding of this ancient trade network.
    • Staggering Scale: Recent estimates, supported by the Muziris Papyrus, reveal the immense scale of the Red Sea trade. Custom taxes on goods from India, Persia, and Ethiopia possibly contributed up to one-third of the Roman exchequer’s income.

    Details unveiled by Muziris Excavations

    • Custom Taxes: The Muziris Papyrus detailed a cargo’s value, highlighting its enormous worth, with one cargo alone being equivalent to the purchase of premium farmland in Egypt or a prestigious estate in central Italy.
    • Roman Revenue: The import tax collected on this cargo alone exceeded two million sesterces. Extrapolating from these figures, Indian imports into Egypt were likely worth over a billion sesterces annually, with tax authorities generating 270 million sesterces.
    • Comparative Significance: These revenues surpassed those of entire subject countries, emphasizing the pivotal role of this trade route in sustaining the Roman Empire’s vast conquests and legions.
    europe trade ancient muziris
    Muziris Papyrus

    Trade details

    • Peak Period: During the 1st and 2nd centuries CE, a maritime highway connected the Roman Empire and India through the Red Sea. This route witnessed hundreds of ships travelling in both directions annually.
    • Traded Goods: The Romans had a great demand for Indian luxuries, including perfumes, ivory, pearls, gemstones, and exotic animals like elephants and tigers. Pepper, India’s major export, was particularly sought after, finding its way into Roman cuisine.
    • Trade from Rome: The flow of goods from Rome to India was limited, with gold being a prominent export. Roman wine was one notable exception, appreciated by Indians.

    Pre-Common Era Trade

    • Early Indian Diaspora: Evidence suggests the existence of an Indian diaspora in the Middle East during the time of the Indus Valley Civilization (c. 3300-1300 BCE). This early trade was coastal and involved smaller quantities of goods.
    • Roman Period Expansion: The trade expanded significantly during Roman times, facilitated by large cargo ships directly connecting the subcontinent and the Roman Empire. Romans played a key role in industrializing this trade.
    • Post-Conquest Peak: The conquest of Egypt by the Romans in the 1st and 2nd centuries CE opened up the route to India, leading to a substantial increase in trade.

    Organization and Duration of Journeys

    • Highly Organized Trade: Contracts were established between Indian merchants in Kerala and shippers in Alexandria. Goods were transported in containers, similar to modern practices, with references to insurance.
    • Understanding Monsoons: Indians recognized the monsoon winds’ seasonal patterns, enabling them to navigate the route efficiently. The journey to Egypt took approximately six to eight weeks, depending on favorable wind conditions.
    • Extended Stays: Indian diaspora rented houses in Egyptian ports while waiting for wind patterns to shift, allowing for the integration of Indian culture into these regions.

    Roles of Indians in the Trade

    • Indian Seafaring Culture: Evidence suggests that Indian dynasties were interested in seafaring, as depicted in Ajanta paintings and early Indian coin designs featuring ships.
    • Indian Sailors: Graffiti left by Indian sailors, primarily Gujaratis from Barigaza (modern-day Bharuch), has been discovered in the Hoq caves on the island of Socotra, emphasizing their active participation in the trade network.

    Comparing with the Silk Road

    • Indian Centrality: The ancient economic and cultural hub of Asia, the Indian subcontinent, and its ports played a central role in maritime East-West exchange. The concept of the “Silk Road” is relatively recent and inaccurately portrays the ancient trade routes.
    • Historical Invisibility: The Silk Road concept was coined in the late 19th century and did not exist in ancient or medieval times. It gained popularity in the 20th century, fostering romanticized ideas about East-West connectivity.
    • Recent Politicization: Chinese President Xi Jinping’s Belt and Road Initiative has politicized the Silk Road, making it a central component of Chinese foreign policy.

  • Deadly Earthquake strikes Morocco

    morocco earthquake

    Central Idea

    • A devastating earthquake struck Morocco, resulting in significant casualties and damage.

    Details of the Moroccan Earthquake

    • Shallow Epicenter: The quake’s epicentre was near the town of Ighil, approximately 70 km southwest of Marrakech. It was considered fairly shallow, with varying depth estimates.
    • Higher Energy: Shallow earthquakes are typically more dangerous as they carry more energy, making them more destructive compared to deeper quakes.

    Major Causes

    • Tectonic Convergence: The earthquake resulted from the northward convergence of the African plate with the Eurasian plate along a complex plate boundary.
    • Faulting: The USGS attributed the quake to oblique-reverse faulting at a shallow depth within the Moroccan High Atlas Mountain range.
    • Fault Classification: Oblique-slip faults exhibit characteristics of both dip-slip and strike-slip faults, occurring in areas of compression where tectonic plates converge.

    Why discuss this?

    • Low Seismicity: Earthquakes are uncommon in North Africa, with low seismicity rates along the northern margin of the continent.
    • Historic Strength: This earthquake was the strongest ever recorded in the mountainous region, catching Morocco unprepared for such an event.
    • Construction Vulnerabilities: Many Moroccan buildings, especially in rural areas and older cities, are not constructed to withstand strong tremors.

    What is an Earthquake?

    • An earthquake is an intense shaking of the ground caused by movement under the earth’s surface.
    • It happens when two blocks of the earth suddenly slip past one another.
    • This releases stored-up ‘elastic strain’ energy in the form of seismic waves, which spreads through the earth and cause the shaking of the ground.

    morocco earthquake

    What exactly causes Earthquakes?

    • As we know, the earth’s outermost surface, crust, is fragmented into tectonic plates.
    • The edges of the plates are called plate boundaries, which are made up of faults.
    • The tectonic plates constantly move at a slow pace, sliding past one another and bumping into each other.
    • As the edges of the plates are quite rough, they get stuck with one another while the rest of the plate keeps moving.
    • Earthquake occurs when the plate has moved far enough and the edges unstick on one of the faults.
    • The location below the earth’s surface where the earthquake starts are called the hypocenter, and the location directly above it on the surface of the earth is called the epicentre.

  • Vidya Samiksha Kendras (VSKs) for Education Data Management

    Vidya Samiksha Kendras (VSKs)

    Central Idea

    • Under the National Digital Education Architecture (NDEAR), the Ministry of Education is spearheading the establishment of Vidya Samiksha Kendras (VSKs) across Indian states.

    What are Vidya Samiksha Kendras (VSKs)?

    • VSKs are data repositories designed to consolidate information from various educational schemes and initiatives run by the Ministry of Education.
    • These repositories aim to streamline data management, promote data analysis, and enhance decision-making in the education sector.

    Key Components of VSKs:

    1. Comprehensive Data: VSKs will aggregate data from diverse educational programs, including:
      • PM-POSHAN mid-day meal programs
      • Teacher training records from the National Initiative for School Heads’ and Teachers’ Holistic Advancement portal
      • Textbook content from Digital Infrastructure for Knowledge Sharing
      • School dropout and attendance data via Unified District Information System for Education (UDISE+)
      • Students’ learning outcomes from National Achievement Survey
      • Performance Grading Index evaluating state-level school education systems.
    2. Central and State-Level Centers: At the central level, VSK operations are housed in the Central Institute of Educational Technology building within the National Council for Educational Research and Training (NCERT) campus. Ernst and Young, a multinational IT company, manages these operations.
    3. Advisory Role: The EkStep Foundation, a non-profit organization co-founded by Nandan Nilekani, former Chairman of the Unique Identification Authority of India (UIDAI), provides advisory support for the VSK project’s implementation.
    4. Transition to Automation: While data entry currently relies on manual processes and is available for download in Excel format, there are plans to transition to automation through Application Programming Interface (API) integration. This shift will enable seamless communication and data integration between multiple platforms at the central, state, and district levels.

    State-Level Initiatives

    • Funding Allocation: The central government has allocated funds ranging from ₹2 to ₹5 crore to each state for the establishment of VSKs. These funds cover pre-configured open-source hardware and software, as well as human resources.
    • States in Action: States like Gujarat, Maharashtra, Odisha, and Jharkhand have already initiated the setup of these technological platforms.

    Benefits of VSKs:

    • Data Correlation and Analysis: The primary objective of VSKs is to enable data analytics through correlation. With vast data from numerous educational schemes, VSKs seek to derive meaningful insights by connecting various data points.
    • Example Scenarios:
      • Attendance Patterns: Analyzing attendance data alongside student dropout rates to identify potential correlations.
      • Mid-Day Meals Impact: Investigating whether consistent mid-day meal provision in certain regions leads to increased school attendance.
      • Student Improvement Tracking: Monitoring students’ progress over time using data from weekly tests to tailor educational support.
    • Gross Access Ratio Mapping: VSKs will facilitate mapping the location of schools with population data to assess the Gross Access Ratio. This information can guide the establishment of new schools, support industry clusters in understanding skilling needs, and assist in higher education planning based on demand and future projections.

  • Orphan Diseases in India

    Central Idea

    • Health discussions often revolve around common ailments, such as diabetes, which affect a significant portion of the population.
    • However, amidst these well-known health issues, there are numerous rare/ orphan diseases that, though infrequent, can have devastating consequences for patients and their families.

    What are Orphan Diseases?

    • Rare diseases, often referred to as orphan diseases, are characterized by a low prevalence rate, typically affecting one person in a population of 10,000.

    Challenges Posed

    • Difficulty in Diagnosis: Rare diseases are challenging to diagnose, particularly for young medical practitioners who may have limited exposure to such cases. The rarity of these conditions means that many healthcare professionals may not have encountered them during their training.
    • Lack of Research: Limited prevalence has historically resulted in insufficient research efforts. With fewer cases to study, there has been a lack of scientific understanding and effective treatments for many rare diseases.
    • High Treatment Costs: While advances in medical research have led to the development of therapies for some rare diseases, the costs associated with these treatments are often exorbitant. From an Indian perspective, these costs can range from Rs. 1 million to Rs. 20 million per year, making them unaffordable for many.

    Initiatives and Progress in India

    • Increasing Awareness: Greater awareness of rare diseases and advancements in genomic technologies for diagnosis have begun to address these challenges. As awareness spreads, more cases are being identified and correctly diagnosed.
    • Regulatory Incentives: Several countries, including India, have introduced regulatory incentives to encourage pharmaceutical companies to invest in research and development for neglected diseases. This has led to increased interest in orphan drugs.
    • Patient-Driven Initiatives: Patient groups and organizations in India are actively contributing to rare disease research and treatment. One notable example is the Dystrophy Annihilation Research Trust (DART), which is conducting clinical trials for Duchenne’s muscular dystrophy.
    • Government Initiatives: The government’s National Policy for Treatment of Rare Diseases is gradually making an impact. It aims to address rare diseases prevalent in India, such as cystic fibrosis, hemophilia, lysosomal storage disorders, and sickle-cell anaemia.

    Lessons from Leprosy

    • Incidence Reduction: Leprosy, once prevalent in India, is now considered a rare disease due to successful efforts in reducing its incidence.
    • Research Benefits: Research on orphan diseases like leprosy can yield broader societal benefits. For instance, studies on synthetic antibiotics have shown a potential to curb the spread of leprosy to household relatives.
    • Government Goals: Research findings may contribute to achieving the government’s objective of making India leprosy-free by 2027.

    Conclusion

    • Rare diseases present unique healthcare challenges that have long been neglected.
    • However, recent progress in diagnosis, research, and patient-driven initiatives is gradually improving the landscape for rare disease patients in India.
    • As awareness grows and regulatory support continues, there is hope for enhanced diagnosis, treatment options, and affordability, ultimately improving the lives of those affected by these conditions.

  • Nation First Transit Card for digital fare payments

    nation first transit card

    Central Idea

    • State Bank of India (SBI) unveiled the ‘Nation First Transit Card’ for seamless and convenient digital fare payments.
    • The card is designed to enhance the commuting experience by facilitating digital ticketing across various modes of transport and parking, all within one card.

    Nation First Transit Card

    • Aims to streamline customer commuting and digital fare payments for metro, buses, water ferries, and parking through a single card.
    • Provides versatility by enabling retail and e-commerce payments.
    • Powered by RuPay and National Common Mobility Card (NCMC) technology.

    Key Facts about the National Common Mobility Card (NCMC)

    • Launched on March 4, 2019.
    • Enables SBI customers to use their Debit Cards as travel cards for metro rail and buses in enabled locations.
    • The concept originated from the Nandan Nilekani committee, established by the Reserve Bank of India (RBI).
    • An initiative by the Ministry of Housing and Urban Affairs in India, promoting cashless transactions and a unified payment platform for commuters.
    • Offers a unified contactless transport solution via the RuPay platform, developed by the National Payments Corporation of India (NPCI).
    • Functions as an automatic fare collection system, transforming smartphones into interoperable transport cards for metro, bus, and suburban railway services.

  • RBI to discontinue Incremental Cash Reserve Ratio (I-CRR)

    Central Idea

    • The Reserve Bank of India (RBI) announced the phased discontinuation of the Incremental Cash Reserve Ratio (I-CRR) on September 8, 2023.
    • This measure aimed to absorb surplus liquidity created by factors such as the return of Rs 2,000 notes to the banking system.

    RBI’s Decision

    • RBI conducted a review and decided to discontinue I-CRR in stages.
    • The central bank aims to release the impounded amounts gradually to avoid sudden shocks to the system’s liquidity, ensuring orderly money market functioning.

    Understanding Cash Reserve Ratio (CRR)

    • CRR is a fundamental concept before delving into Incremental Cash Reserve Ratio (ICRR).
    • Banks are mandated to maintain a certain portion of their deposits and specific liabilities in liquid cash with the RBI.
    • CRR serves as a crucial tool in the RBI’s arsenal for managing liquidity in the economy and acts as a safety net during times of banking stress.
    • Currently, banks are required to uphold 4.5% of their Net Demand and Time Liabilities as CRR with the RBI.

    Introduction to ICRR

    • I-CRR was introduced on August 10, 2023, as a temporary measure by RBI to absorb surplus liquidity.
    • Banks were required to maintain an I-CRR of 10% on the increase in their Net Demand and Time Liabilities (NDTL) between May 19, 2023, and July 28, 2023.
    • It came into effect from the fortnight starting August 12, 2023.
    • The RBI has the authority to implement an additional measure called Incremental Cash Reserve Ratio (ICRR), in addition to the standard CRR.
    • ICRR is employed during periods characterized by excess liquidity in the financial system.
    • Essentially, ICRR mandates that banks park even more liquid cash with the RBI than what is required under CRR.
    • This serves as a means to further manage and control liquidity in the banking system.

    Reason for I-CRR

    • Excessive liquidity emerged due to factors like the return of Rs 2,000 banknotes, RBI’s surplus transfer to the government, increased government spending, and capital inflows.
    • The daily liquidity absorption by RBI in July reached Rs 1.8 lakh crore.
    • Managing surplus liquidity was necessary to maintain price and financial stability.

    Impact on Liquidity Conditions

    • I-CRR was expected to absorb over Rs 1 lakh crore of excess liquidity from the banking system.
    • It temporarily shifted the banking system’s liquidity from surplus to deficit on August 21.
    • Factors like GST outflows and central bank selling of dollars contributed to tight liquidity.
    • However, liquidity conditions reverted to surplus from August 24.
    • On September 8, RBI absorbed Rs 76,047 crore of surplus liquidity from the system.