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UPSC Daily Current Affairs : 27-July-2020

Topic Covered :

  1. India ramps up rail cooperation with Dhaka

  2. RBI’s stress test shows banks are on thin ice as virus may affect capital

  3. India to announce financial assistance package for Maldives' economic recovery

  4. How coronavirus molecules camouflage in host cell decoded, may lead to drug development

  5. Maratha Quota

  6. Cyclospora

  7. World's largest fusion plant set to create history



INDIA RAMPS UP RAIL COOPERATION WITH DHAKA


Why in news?

  • India will on Monday hand over 10 broad gauge (BG) locomotives to Bangladesh as a part of its grant assistance to the eastern neighbour. 


Highlights:

  • India sees rail cooperation with Bangladesh, a country where China is looking to rapidly expand its economic presence including through rail connectivity, as vital for promoting trade and connectivity and shoring up the economic partnership. 

  • With the handing over India will fulfil its commitment made during Bangladesh PM Sheikh Hasina's visit in October 2019. 

  • India and Bangladesh are jointly working to enhance rail connectivity by developing some crucial railway projects as well as by restoring some old rail links with Bangladesh, according to Indian authorities. 

  • Under its BRI initiative, China has been working to expand Bangladesh's railway network including by building a line from Dhaka to Jessore in southwest Bangladesh. 


Source : TOI ( https://timesofindia.indiatimes.com/india/india-ramps-up-rail-cooperation-with-dhaka/articleshow/77186238.cms )



RBI’S STRESS TEST SHOWS BANKS ARE ON THIN ICE AS VIRUS MAY AFFECT CAPITAL

Why in news?

  • Indian lenders had brought down dodgy loans from 11.6% in FY18 to just 8.5% of their book in FY20. It seems that was just a number on the sand, and all it took was a wave of the pandemic to wipe off this minor victory.


Highlights:

  • The capital that public sector banks wheedled out of the government and their private counterparts boasted about is now looking very vulnerable. Banks will see 12.5% of their loans turning bad this year, for sure.

  • Their worst nightmare is this ratio climbing up to 14.7% under extreme duress due to the pandemic.

  • That is the number thrown by the Reserve Bank of India’s (RBI’s) stress tests.

  • In the financial stability report, the central bank paints a gloomy picture on the capital levels of banks and reiterates how important it is to raise money.

  • The Union government has merged public sector banks in the hope that stronger balance sheets will support the weaker ones. But the fact remains that the outlook on asset quality and health of capital is still clouded and even the RBI is not offering any clarity on this.


Source : Livemint ( https://www.livemint.com/market/mark-to-market/rbi-s-stress-test-confirms-an-ugly-pandemic-hit-on-banks-11595595252003.html )