1.RBI in Controlling Headline vs Core Inflation

Headline Inflation: Measures total inflation in consumer prices,including food and energy.
Core Inflation: Excludes volatile items such as food and energy,focusing on long-term trends.

Role of RBI (Reserve Bank of India)

Monetary Policy: Adjusts interest rates to control inflation.

Inflation Target: Aims for a specific inflation rate to ensure economic
stability.

Impact of Headline vs Core Inflation

Headline Influences – Affected by seasonal changes and global factors.Immediate impact on consumer prices.

Core Influences-
Reflects underlying inflation trends.
Important for long-term policy decisions.

Challenges Faced by RBI

Food Inflation: Significant contributor to headline inflation; difficult to control.

Global Factors: International commodity prices affect domestic inflation.

Policy Balancing: Need to balance interest rates and economic growth.

Strategies Implemented

Interest Rate Adjustments: Regular reviews and adjustments based on inflation data.
Monitoring and Research: Continuous assessment of inflation drivers andconsumer trends.
Communication: Clear communication of policy decisions to manage market
expectations.

Future Outlook

Economic Growth vs Inflation Control: Balancing act to ensure sustainable
economic development.
Policy Adjustments: Flexibility to adapt to changing economic conditions.

2.Prokaryotes

Context: A new research suggests that as oceans warm, prokaryotes will decline less in biomass compared to other marine life, leading to their increased dominance.

• Prokaryotes, which include bacteria and archaea, play a vital role in marine ecosystems, supporting food chains and balancing carbon emissions.
• This shift could reduce fish populations, crucial for global food supply, and diminish the ocean’s ability to absorb carbon emissions.

About Prokaryotes:

Prokaryotes are organisms whose cells lack a nucleus and other organelles.

Prokaryotes are divided into two distinct groups: the bacteria and the archaea, which scientists believe have unique evolutionary lineages.

Most prokaryotes are small, single-celled organisms that have a relatively simple structure.

3.Microbes

Context: A new study reveals that microwave ovens, whether used in homes, offices, or laboratories, host diverse communities of microbes.

• This challenges the common belief that microwave radiation kills all bacteria, which can cause food-borne illnesses.
• The study, which involved sampling 30 microwave ovens, found 747 different genera of bacteria, with human-skin bacteria like Bacillus, Micrococcus, and Staphylococcus being dominant.

4.Decline in current account and saving account deposit

News

• The Indian banking sector is currently facing significant challenges, particularly with the rising gap between bank deposits and credit growth.
• This situation has led to the worst deposit crunch in two decades, accompanied by a notable decline in Current and Savings Accounts (CASA) deposits.
• These developments are raising concerns about the stability of the banking system and its ability to support economic growth.

Background

• Core deposits, which include savings accounts, fixed deposits, and current accounts, have traditionally provided stable funding for banks.
• These deposits have allowed banks to maintain high-interest margins, primarily due to the low cost associated with such deposits.
• Historically, household savers in India have accepted negative real returns, where the interest earned on deposits was lower than the rate of inflation.
• Over the last 30 years, inflation in India has averaged around 6.6%, while savings deposits have typically yielded between 3% to 5%.

Impact

• Interest Rate Risks and Profit Pressures:
  Declining core deposits expose banks to increased interest rate risks and pressures on profitability. As banks lose low-cost deposits, they might have to offer higher interest rates to attract new deposits, which could squeeze their profit margins.
• Impaired Ability to Fund Investments:
  Erosion of deposits can impair the ability of banks to fund profitable investments. With fewer deposits, banks may have to cut back on lending, which could slow down economic activities that depend on bank financing.
• Constraints on Last-Mile Lending:
  The decline in deposits could also constrain last-mile lending, particularly to sectors that are crucial for inclusive growth, such as agriculture and small and medium-sized enterprises (SMEs).
• Challenges for Smaller Banks:
  Smaller banks, which rely more heavily on deposits, may face greater challenges in this environment. They might struggle to attract deposits in the face of competition from larger banks and non-bank financial institutions.
• Competition and Technological Advances:
  The banking sector is facing rising competition from fintech companies and other non-traditional players. Technological advances have made it easier for savers to explore alternative investment options, which often offer higher returns than traditional bank deposits.

Government Schemes

• The Indian government and the Reserve Bank of India (RBI) have introduced various schemes to address the challenges in the banking sector.
• These include efforts to recapitalize public sector banks, promote financial inclusion through initiatives like Pradhan Mantri Jan Dhan Yojana (PMJDY), and enhance digital banking infrastructure.
• Additionally, the introduction of deposit insurance schemes and measures to strengthen the regulatory framework for NBFCs are aimed at improving the overall stability of the financial system.

International Best Practices

• Developing Deeper and More Liquid Bond Markets:
  Countries like the United States and Japan have developed deep and liquid bond markets, which provide banks with a stable source of funding and reduce their reliance on deposits.
• Encouraging Financial Innovation:
  Financial innovation, such as the development of inflation-indexed bonds or products linked to economic growth indicators, can make saving through banks more attractive. Countries like the UK and the US have implemented such measures to enhance the attractiveness of bank deposits.
• Regulatory Measures:
  Implementing strong regulatory measures to ensure bank stability amid changing deposit landscapes is crucial. For example, the European Union has implemented strict capital adequacy requirements to ensure that banks remain stable even when deposit levels fluctuate.

5.Clock’s History

Throughout history, timekeeping has evolved from basic sundials and water clocks to advanced atomic and nuclear clocks.

Period	Clock Type	Description
Ancient Times	Sundials, Water Clocks, Hourglasses	Used sunlight to cast shadows, and the flow of water or sand to measure time.
Middle Ages	Mechanical Clocks	Introduced the verge escapement mechanism, followed by spring-driven and pendulum clocks, enhancing accuracy.
18th Century	Marine Chronometer	Invented by John Harrison, revolutionized navigation by providing precise timekeeping at sea for determining longitude.
19th Century	Electric Clocks	Emerged using batteries or motors, moving away from purely mechanical components.
20th Century	Quartz Clocks	Used quartz crystals oscillating at a fixed frequency for accurate time measurement.
Modern Times	Atomic Clocks	Use lasers to excite atoms, achieving extreme accuracy in time measurement.

Current advancements include optical clocks, which use higher-frequency radiation for even greater precision, and researchers are working on nuclear clocks, which could potentially offer even higher accuracy by using the nuclei of atoms as resonators.