What is Cash Reserve Ratio (CRR)?
17-02-2024
11:08 AM

Overview:
The State Bank of India (SBI) has requested the Reserve Bank of India (RBI) for a lower cash reserve ratio (CRR) on green deposits raised from customers.
About Cash Reserve Ratio (CRR)
- Under CRR, commercial banks have to hold a certain minimum amount of deposit as reserves with the RBI.
- The percentage of cash required to be kept in reserves as against the bank's total deposits is called the CRR.
- The RBI decides the amount, and is kept with them for financial security.
- The bank cannot use this amount for lending and investment purposes and does not get any interest from the RBI.
- The CRR applies to scheduled commercial banks, while regional rural banks and NBFCs are excluded.
- Following are the critical objectives of the CRR:
- CRR helps control inflation. In a high inflation environment, the RBI can increase CRR to prevent banks from lending more.
- CRR also ensures banks have a minimum amount of funds readily available to customers, even during huge demand.
- CRR serves as the reference rate for loans. Also known as the base rate for loans, banks cannot offer loans below this rate.
- Since CRR regulates the money supply, it boosts the economy whenever required by lowering the CRR.
- How is the CRR Calculated?
- There is no CRR formula. In technical terms, CRR is calculated as a percentage of Net Demand and Time Liabilities (NDTL).
- NDTL for banking refers to the aggregate savings account, current account, and fixed deposit balances held by a bank.
- In case a bank fails to maintain its CRR, it will have to pay fines to the RBI because of that default. The fine is charged for the shortfall.

Q1) What are Green Deposits?
In general terms, a green deposit is a fixed-term deposit for those who want to invest in environmentally friendly projects. Just like a regular Fixed Deposit scheme, the green deposit pays interest to its investors and has a fixed term. The proceeds that a bank gets from deposit holders get earmarked for allocation to green finance.
Source: SBI seeking lower CRR on green deposits, says chairman Dinesh Khara
What is SOFIA (Stratospheric Observatory for Infrared Astronomy)?
17-02-2024
11:08 AM

Overview:
Scientists recently detected water molecules on the surface of two asteroids for the first time ever, using the data from NASA's now-retired SOFIA airborne observatory.
About SOFIA (Stratospheric Observatory for Infrared Astronomy)
- SOFIA was a telescope mounted on a Boeing 747 SP aircraft that studied infrared light, essentially heat, emitted by objects in the universe.
- SOFIA is operated jointly by NASA and the German space agency.
- It is the world's largest airborne astronomical observatory, complementing NASA’s space telescopes as well as major Earth-based telescopes.
- The observatory, fitted with a 8.9-foot-wide (2.7 meter) telescope with a nearly 20-ton mirror, used a door in the side of the aircraft to peer at the sky.
- Flying into the stratosphere at 38,000-45,000 feet put SOFIA above 99 percent of Earth’s infrared-blocking atmosphere, allowing astronomers to study the solar system and beyond in ways that are not possible with ground-based telescopes.
- SOFIA could observe the universe in the widest range of infrared light.
- The airplane is capable of ten-hour flights, with flight paths chosen to keep ahead of the sunrise and maximize the amount of darkness.
- The observatory’s mobility allowed researchers to observe from almost anywhere in the world, and enabled studies of transient events that often take place over oceans, where there are no telescopes.
- For example, astronomers on SOFIA studied eclipse-like events of Pluto, Saturn’s moon Titan, and Kuiper Belt Object MU69, the next flyby target for NASA’s New Horizons spacecraft, to study the objects’ atmospheres and surroundings.
- The SOFIA project was prematurely ended in 2022 after operating for 12 years.

Q1) What is an Asteroid?
Asteroids are small, rocky objects that orbit the sun. Although asteroids orbit the sun like planets, they are much smaller than planets. They are leftovers from the formation of our solar system. From being as small as 10 meters across to as huge as 530 km in diameter, asteroids have varied sizes
Source: Water detected on the surface of an asteroid for the 1st time ever
What is Interpol’s Red Corner Notice?
17-02-2024
11:08 AM

Overview:
The Central Bureau of Investigation (CBI) recently said it has brought back an absconding life convict, against whom there was a Red Corner Notice (RCN) in a murder case.
About Interpol’s Red Corner Notice
- Criminals or suspects often flee a country to evade facing justice.
- A Red Corner Notice also called a Red Notice (RN), is a request to law enforcements worldwide to locate and provisionally arrest such fugitives.
- It alerts the police forces across the world about these fugitives who are wanted internationally.
- A RN contains information that helps identify the wanted person, including name, date of birth, nationality, physical attributes like colour of hair, eyes, etc., along with pictures and biometric information.
- It also includes information about the crimes that they are wanted for.
- Interpol issues a RN at the request of a member country.
- The country which issues the request need not be the home country of the fugitive.
- Interpol acts at the request of the country where the alleged crime is committed.
- A RN request can also be raised by International Criminal courts and Tribunals.
- It is not an international arrest warrant. It is a request to locate and provisionally arrest a person pending extradition, surrender, or similar legal action.
- Interpol cannot compel the law enforcements authorities in any of the countries to arrest someone who has a RN issued. Each member country determines on the legal value it gives to a RN.

Key Facts about Interpol
- The International Criminal Police Organization (ICPO), commonly known as Interpol, is an inter-governmental organization that facilitates international police cooperation to control crime.
- It has 195 member countries, with its headquarters in Lyon, France.
- Each of the member countries has an Interpol National Central Bureau (NCB).
- They facilitate the respective country’s national law enforcement with other countries and with the General Secretariat, which is Interpol’s body that coordinates its policing and administrative activities.
- CBI represents Interpol in India as the country's NCB.'
- Interpol helps coordinate police networks & experts in different crime areas to control crime.
- All the member countries are connected through Interpol’s communication system, called I-24/7.
- This secure network is used by member countries to contact each other and allows them to access Interpol’s databases.
- Interpol manages 19 databases, which include information on varied crimes and criminals and are available real-time to countries.
- It offers investigative support, including forensic analysis, locating fugitives across the world, etc.
Q1) What is the Central Bureau of Investigation (CBI)?
It is the premier investigative agency in India, with a dual responsibility to investigate grievous cases and provide leadership and direction in fighting corruption to the police force across the country. The establishment of the CBI was recommended by the Santhanam Committee on Prevention of Corruption (1962–1964). It is not a statutory body, as it was set up by a resolution (1963) of the Ministry of Home Affairs. It derives its powers from the Delhi Special Police Establishment Act, 1946.It is also the nodal police agency in India that coordinates investigations on behalf of Interpol member countries.
Source: Absconding murder convict with Interpol Red Notice brought back from UAE: CBI