Economy-Monetary Policy Update

7/1/2014 [Current] April-Week1-P1: Economy-Monetary Policy update,GI Tagging for Kanauj Attar,Predatory Pricing by Spicejet, BIS new labelling
t, BIS new labelling guidlines for electronics - Mrunal
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    [Current] April-Week1-P1: Economy-Monetary  >> Current Affairs Weekly

Policy update,GI Tagging for Kanauj 3 months ago |  24
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Attar,Predatory Pricing by Spicejet, BIS new labelling guidlines for
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1. [Act 1] Economy
नवीनतम ट प णयाँ 2. E1: RBI: Monetary Policy April 2014
SONIA { thnks for rplying 3. E2: GI Tagging & EC model code
sir bt it shld nt be like this } –
1. #1: Dharmavaram Pattu Silk Sarees: Andhra
[SSC-CGL-2013] Re-exam
on 20th July, Download all... 2. #2: Kannauj Attar, UP
ANKIT { Tabhi bro i cited 3. #3: Muradabad Metal craft UP

last year cut off keepin in 4. #4: Saharanpur woodcraft, UP
http://mrunal.org/2014/04/current-april-week1-p2-economy-monetary-policy-updategi-tagging-kanauj-attarpredatory-pricing-spicejet-bis-new-labelling-guidlines-electronics.html?utm_source=feedburner&utm_med… 1/26
7/1/2014 [Current] April-Week1-P1: Economy-Monetary Policy update,GI Tagging for Kanauj Attar,Predatory Pricing by Spicejet, BIS new labelling guidlines for electronics - Mrunal
mind the complex paper 2 } – 5. #5: Firozabad Glassware,

[CAPF] UPSC declares
UP
Written Result of Assistant...
4. E3: Predatory pricing by
TILAK { Hi Sagar, It's too
Aviation Companies
simple you are just taking a
pain to solve it. just be cool 5. E4: BIS New labelling
and solve with step by step... guidelines for Electronics
Now lets... } – [Reasoning]
Syllogism (All Cats are [Act 1] Economy
Dogs): Method,...
SIKANDAR { Mrunal Current Affairs for April week 1 (1st to 7th

sir..............plz S&T....pehle April). Total three parts
de dijye....baad me pressure
badh jayega...!! } – 1. Part 1/3: Economy= You’re here. (bank license topic discussed separately)
[Current]May W2/P1:
2. Part 2/3: Environment, Biodiversity, Polity and Culture click me
Environment & Biodiversity:
3. Part 3/3: Diplomacy-international relations (click me)
Polavaram Project,...
GOYAT { congratssss E1: RBI: Monetary Policy April 2014

Sam..... } – [CAPF] UPSC
declares Written Result of Make sure you know the theory of repo, reverse repo, LAF, MSF, CRR, SLR, if
Assistant... not then click me
GOYAT { can't say 28th Jan 2014: Monetary policy (and Rajan said he’d update it after two months
anything about interview.... }
= Feb, March)
– [CAPF] UPSC declares
Written Result of Assistant... 1st April 2014: monetary policy update
GOYAT { 3rd and 4th july Key rates unchanged:
no interview schul till
now...kisi ka remedical
schdul hai 3 ya 4 ko??? } –
[CAPF] UPSC declares
Written Result of Assistant...
DHARAM PAL { IFos

should be reserved for B.Sc.
and biology student bcz it is
only one exam in this filed
otherwise B.sc. student go to
hell in... } – [IFoS] UPSC
declares cutoffs for IFoS-
2013 exam,...
AVI { @ankit dont u think

280 is little higher
considering paper II being so
lengthy... } – [CAPF] UPSC
declares Written Result of
Assistant...
SONU VERMA { Nice

Bank Rate 9%
work } – [Culture] Festivals of
India: Characteristics (2 Marginal standing facility (MSF) 9%
markers...
Repo rate (policy rate) 8%
SAGAR { can u pls solve LAF
this some towers are lanes Reverse Repo rate 7%
some lanes are roads some
roads are rivers some rivers Cash Reserve ratio (CRR) 4%
are jungles conclusion; 1
Reserve ratios
Statutory liquidity ratio (SLR) 23%
some jungles... } –
[Reasoning] Syllogism (All These rates are one and same like previous update (Feb 2014).
Cats are Dogs): Method,...
हे
म त { please if you can Rajan did not change the policy rate (repo rate) for the following reasons
help in providing current
news about psychology
also... } – [Studyplan] CSAT
Aptitude Paper 2: Decision
Making...
PRADEEP { Bt. brinjal

can prevent condition like
farmers getting intoxicated
by coming under insecticide
spray exposure. Cotton used
to be one such crop before
2002 which... } – [Science]
Genetically Modified Crops,
Bt-Brinjal, Cartagena &...
ANKIT { 80-85 } – [CAPF]

UPSC declares Written
Result of Assistant...
VIKRAM { Hi Rambler..
did IB person say nythng abt
first training batch..?? Or any
other imp info u want 2
share.. } – [ACIO] Result for 1. Yes, inflation has declined but not sufficient enough where repo rate should be
ACIO 2013 exam declared,...
reduced.
UMA { please send me 2. Rajan fears that even in 2015, (CPI) inflation will not go below 8%, because…
answer of this questions on 3. Geo-political developments (like Ukrain) and their (negative) impact on crude
my email id } – [IBPS-SPL] oil, gold & other international commodity prices.
IT-Specialist officer previous
4. El Nino effect = less monsoon = less food production
question papers from...
5. fuel, fertilizer and electricity subsidies = more money supply (from
अि तम त थ
government’s side)
U PSC 6. MSP (Minimum support prices) on foodgrains. = more money supply (from
30-Jun: Civil Services government’s side)
IAS/IPS(1291)
30-Jun: Forest Service IFoS(85) Other measures
B anking Se ctor
1. Accepted some recommendations of Urjit Patel Committee, like targeting CPI
09-Jul: IBPS RRB 2014
21-Jul: RBI asst.(only SPORTS (combined) inflation. Detailed coverage of Urjit Patel, pros/cons discussed
quota) already in earlier article click me.
11-Jul: Jharkhand Gramin 2. KYC norms are being simplified for Foreign Portfolio Investors. (FIIs)
(Sep13 RRB Score) 3. To reduce volatility of FII investment in Government securities (G-Sec), Rajan
11-Jul: Puducherry Gramin
made new rule- those FIIs can only invest in G-sec only with maturity of one
(Sep13 RRB Score)
year or above.
Start Se rv ice
4. will allow more companies /entities to get Banking correspondence (BC)
30-Jun: GPSC Class1-2(350+)
C omm/H R /C A/M B A license.
30-Aug: Accountant NIFFT
Rajan’s other projections:
Ranchi
11-Jul: HR officers,NBBC
30-Jun: HUDA accountants,
Asst.Accountants
28-Jun: NPCI Managers
IT /C ompute r
30-Aug: IITD Delhi system
admin(3)
25-Jul: programmer Lucknow
Med.Uni.
25-Jul: programmer Lucknow
Med.Uni.
17-Jul: IT jobs NIHFW
15-Jul: System Op.Raebareli
10-Jul: Karnataka PC operators
08-Jul: Ludhiana PC operator
06-Jul: IT engg. in CRIS (need
GATE2014)
03-Jul: IIT-GNR Software
30-Jun: Mumbai IT
30-Jun: Data Entry
Op.Arunachal 2013-14 2014-15
28-Jun: RailTel IT jobs
Engine e rs
GDP growth rate% 5 5-6
23-Jul: MNIT Jaipur Tech.asst. CAD as % of GDP - 2%

15-Jul: ONGC Western
Tech.asst.
11-Jul: Powergrid Sr.Engg Minimum Balance
11-Jul: NBBC Engineers
09-Jul: OIL Drilling Engg.12
Rajan asked banks not to levy penal charges on customer, if he doesn’t
03-Jul: IIT-GNR maintain minimum balance. (but bank may suspend his facilities on until he
03-Jul: AFCAT Airforce puts money)
01-Jul: WAPCOS Engg. Counter argument:= since banks have to incur expenses for record
(GATE2014) maintenance, staff salary even on such non-minimum balance dormant

30-Jun: CPRI Engg. Banglore accounts. So banks will raise the charges on ATM, Debit card etc. on all
30-Jun: NALCO GATE 2014
customers, to cover those losses and keep profit margin same.
Police /D e fe nce /Inte l.
21-Jul: NDS(II) 2014 Table: Penalty rates at the moment:
14-Jul: BSF Para-
Medic,Pharma
Bank Min. Balance necessary (monthly) penalty (Urban) Penalty (rural)
14-Jul: BSF Motor transport
07-Jul: BSF ASI/H.Constables SBI 1000 204 102
06-Jul: Doctors in BSF
03-Jul: AFCAT Airforce ICICI
10000 (Urban)
30-Jun: DySP Gujarat(21)
HDFC 5000 (rural) 250-350 250-350
30-Jun: Army(10+2) Technical
Spe cialist KOTAK MAHINDRA
B C om/H R /M B A
HSBC 1.5 lakh 350
15-Jul: ONGC accountants(2)
09-Jul: HR Officers BEL Citibank 2 lakh 500
M e dical /Allie d
18-Jul: Doctors in HAL
14-Jul: BSF Para-
E2: GI Tagging & EC model code
Medic,Pharma
07-Jul: Haryana Doctors
06-Jul: Doctors in BSF
03-Jul: Doctors in various
central org.
30-Jun: Delhi Doctors
30-Jun: Medical Officer
Chandigarh(10)
30-Jun: AIIMS Jodhpur

Le gal
07-Jul: Haryana Attorney
Scie nce /Agri. G rads.
30-Aug: Lab Attendent NIFFT
Ranchi
25-Jul: Himachal
Tech.Assistants
14-Jul: IHBT Himachal
10-Jul: Karnataka lab assistant
10-Jul: Karnataka Horti.Field
Asst.
10-Jul: Scientist MP
05-Jul: DRDO scientists
05-Jul: SAIL technician
03-Jul: NIFTEM technician
04-Jul: Scientist Tamilnadu
003Jul: Dehradun
Scientist/Asst.
04-Jul: Assistants Tamilnadu
30-Jun: Rajasthan Agro officers
Spe c.O the rs
07-Jul: Haryana Town planner
30-Jun: Loksabha Interpreter
M isc.D e skjobs
30-Aug: clerks NIFFT Ranchi
31-Jul: NGT
Secretary,Steno,Translators
21-Jul: NIT Warangal asst. What is Geographical indicator tag, what benefit does it offer? = already
10-Jul: NIT Patna Asst. covered in my old article Click ME
15-Jul: NIFT,Gandhinagar
Geographical indications (GI) registry is one type of quasi-judicial body.
15-Jul: Raebareli Deskjobs
07-Jul: Drivers AMU
But as per Election commission’s model code of conduct, even they had to
03-Jul: IIT Gandhinagar pause giving new GI-registration.
Deskjobs Following is the list of product awaiting GI registration:
30-Jun: Delhi Teachers
Le cture /Prof. Dharmavaram handloom silk sari Andhra
07-Jul: AMU
Firozabad glass UP
02-Jul: Baroda Univ.
Warning Kannauj perfume UP
DONOT wait till last date.
Online Form Part1 stops Moradabad metal craft UP
working 2-3 days b4
Saharanpur woodcraft UP
deadline.
DONOT forget/misplace
registration/roll These places/items become important at two places
number/hall ticket after
exam is over. MCQ : theory / static content
GS Mains Paper 1: (Geography) location factor of various industries.
#1: Dharmavaram Pattu Silk Sarees: Andhra
Location factors:
1. Climate: semi-arid tropical = less rainfall = good because silk yarn breaks
easily in rainy weather.
2. Water quality-soft = best suited for “degumming” and dying the silk.
3. Raw silk as such as harsh and unsuitable for dye treatment.
4. Hence it is subjected to degumming treatment= soak in boiling water with soap
and soda ash.
5. But if water is hard, then soap/soda won’t dissolve easily. That’s why soft
water essential.
6. >1000 ft. above sea level = temperature ~25-40 degree = good atmosphere
for labor. Because Dharmavaram silk is essentially handloom woven and not
power loom.
7. This town is ~50 kms away from Anantapur in the Rayalaseema region of
Andhra Pradesh= good transportation facilities
Raw material:
100% pure mulberry silk only. (no mixing with cotton etc.)
Zari brought from Surat. (lightweight, non-perisable) hence silk industry
doesn’t need to be setup near Surat’s zari. PS: Surat Zari also enjoys GI
status.
Designs:
Lepakshi temple murals (near Anatapur)

various flora, fauna and epic scenes.
Acid Dye (theory)
1. Acid dyes can easily color protein fibres like silk and wool. (Hence acid dyes
http://mrunal.org/2014/04/current-april-week1-p2-economy-monetary-policy-updategi-tagging-kanauj-attarpredatory-pricing-spicejet-bis-new-labelling-guidlines-electronics.html?utm_source=feedburner&utm_me… 10/26
used in silk industry and not alkaline dyes).

2. Acid dye colors highly durable and can last upto 50 years.
3. Applied generally in the presence of an organic or inorganic acid and hence
are called acid dyes.
4. After dyeing phase is over, workers mix Sodium Hydroxide to remaining dye =>
acid neutralized=> effluent discarded in the drainage. Hence the process eco-
friendly. No chemical diseases reported in the region.
Product:
Silk Pattu Sarees And Paavadas for grand occasions

also for Bharath Natyam and Kuchipudi dancers.
#2: Kannauj Attar, UP
History:
(ya this type of stupid MCQs are asked whether abc ancient text mention xyz thing
or not?….dig last CDS and CSAT- Kalhan’s Rajtarangini and Huen Tstang
respectively.)
Perfume dates back to over 5,000 years to the Indus valley civilization.
Excavation of perfume distillation sites.
Perfumes even mentioned in ancient Pali and Islamic texts.
1St AD: Greek text Periplus mentions sandalwood imported from India.
~600AD: Emperor Harshvardhan made Kannauj his capital and encouraged
the perfume industry. Some perfumer makers were so influential, they were
allowed to mint their own coins!
~1550AD: In Aain-e-Akbari, Abul Fazal mentions Emperor Akbar was fond of
perfumes. His court chamber was continuously scented.
~1600AD: Tojak-e-Jahangiri, claims that queen Noorjahan invented a perfume
called “rooah-e-gulab”.
Science/Botany
Perfumes are essential oils from flowers, mixed with a “base” material.
Essential oils are volatile, liquid aroma compounds, usually sourced from
plants. Essential oils are not oils in a strict sense, but have oil like properties
e.g. poor solubility in water.
Essential oils often have an pleasant odour, hence used in food flavouring and
perfumery.
Raw material: base
Base is the liquid in which flowers are sunk to extract the essential oil.
Sandalwood oil is the best base for attar making. (source: Karnataka and
Kerala)
but scarcity of sandalwood= sky high prices, hence traditional perfumer
makers nowdays use artificial chemical base such as liquid paraffin and Di-
Octyl Phthalate (DOP)- for making cheaper attars.
Attars are made using the centuries old copper vessels called Deg (Kettle) or
Still and Bhapka (Receiver).
The Deg & Bhapka system is based on hydro-distillation technique.
Raw material: flowers:
Local crops of Kannauj= Jasmine, Kadamb, Merigold, Henna etc. remaining

flowers brought from other states.
Rose Hathras and Aligarh in Uttar Pradesh and Palanpur in Himachal Pradesh
Khus Bharatpur (Rajasthan)
Chameli Chandoli in Jaunpur district,
Raat Rani Viaywara district (Andhra Pradesh),
Kewra Burahanpur, Ganjam in Orissa
Saffron Jammu & Kashmir.
Spices and herbs North-East States of India and Himalaya
Products: Fragrances (attars), incense sticks, dhoop/hawan material, gulkand

(made of rose petals and sugar), Rose water and scent sprays.
#3: Muradabad Metal craft UP
History:
Mughals brought Kansa (an alloy of copper, zinc and tin) from Iran, Turkey,
Egypt. Some migrants also settled here and started crafting kitchen utensils.
Designs influenced from Iranian style. Usually, king travelling on elephant,

Mughal monuments etc.
Present city established during Akbar’s time.
boost in demand due to Kanuaj Attar business (perfume bottles).
today >2000 cr export, >25000 cr artisans employed.
Science
Brass= 60% copper + 40% Zinc – but proportion can be varied according to
product.
Bass has low melting point (~900C) = easy to melt and moult.
Electroplating technique used for changing surface properties
#4: Saharanpur woodcraft, UP
Raw material
wood/timber of mango, rosewood and shesham

Timber should be less than 15% moisture content = become seasoned.
Seasoning process- drying of timber to remove the moisture contained in walls
of the wood cells.
Design:
Srinagar Woodcraft geometrical designs
Mysore woodcraft human and animal motifs
Saharanpur woodcraft Monuments of Sultanate & Mughal age, grapevines, floral patterns.
Wax polish used to increase brightness.

Earlier woodcrafting done manually with handtools, nowadays use of
machinery.
Products: Coat Hangers, Cupboards, Dressing Tables, Embroidery Frames, Table

Tops, Tea Carts.
#5: Firozabad Glassware, UP
Raw material:
Soda ash and Silica
Techniques:
Glass ware manufactured using mouth blown technique

The artisans use to roll glass layer on wooden rods, which were cut into the
shape of bangles
nowhere else done in the world
Hence Firozabad = World Glass Bangles Capital.
Products: glass bangles, chandeliers, glass status of gods and goddess
E3: Predatory pricing by Aviation Companies
Interview questions:
1. What is predatory pricing: how is it good/bad for business/ economy?

2. Why is Spicejet accused of predatory pricing?
3. What has DGCA done in this regard?
What is Predatory Pricing?
Means deliberately selling product below the cost price, to eliminate

competition.
Usually predatory pricing is done by firms with deep pockets (like Walmart),
because they can afford to make such temporary losses.
in short, it may appear good to customers- because products available
@cheap rate
But in long term, the firm establishes monopoly and starts exploiting the same
customers.
Sometimes the strategy misfires, company makes heavy losses (e.g.
AirDeccan and Kingfisher).
Why Spicejet accused of Predatory pricing?
They’ve launched a scheme “Rajiv Gandhi One Rupee Air ticket”

Sounds good? but there are hidden terms and conditions
1. Offer valid only if you book tickets during April 1 to 3.

2. Only one or two seats offered in each flight under “One rupee” scheme.
So this is both “predatory pricing” + misguiding customers.

Spicejet already making losses, and now they’ve launched this scheme=>
other aviation companies will also be forced to launch similar schemes to stay
on competition => everyone starts bleeding and making losses=> ultimately
some get on verge of collapse like Kingfisher= staff salary not paid, loss EMIs
not paid, Bank NPA increases and so on….
What has DGCA done?
Directorate General of Civil Aviation (DGCA) is empowered to take action

against such predatory pricing (under Aircraft rule #135)
He has ordered Spicejet to immediately stop this scheme.
E4: BIS New labelling guidelines for Electronics
Q. (GS2-Regulatory bodies) What is BIS? Why is the electronics industry opposed

its new labelling guidelines? (200 marks)
Bureau of Indian standards is a statutory body under Consumer affairs

ministry, to set the quality standardization criteria for consumer goods.
It has recently updated the labelling guidelines for IT & electronics industry- for
products such as printers, scanners, wireless keyboards, set-top boxes and
microwave ovens.
1. Earlier companies had to merely put stickers on the products.

2. But as per new guidelines, BIS requires them to screen print, emboss or
engrave the labels onto the product and its packaging material.
3. Manufacturers also need increase their font size such that product description
is clearly visible.
IT & electronics Industry is opposed to this guideline because:

1. Increase in the production cost. In certain cases almost by 100%.

2. BIS ordered the companies to implement this from April 2014, a deadline
almost impossible to achieve.
3. Difficult to engrave certificates on some delicate gadgets such camera, tablets
and mobiles.
4. No apparent benefit to customers.
5. No such labelling rules followed anywhere else in the world.
~170 words.
Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations

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[Current]May W2/P1: Environment & Biodiversity: Polavaram

Project, Kudankulam milestone, Turtle vs Tortoise, Dancing frog,
Elephant shrew, Dwarf Gecko
[Current] May-W1/P1: Polity-RPA Section 126/130, Lokpal

selection, Fixed tenure CJI, JAC, Mullaperiyar, Prasar Bharti
Autonomy, CBI sanction
[Current] May-Week1/P2: History Culture: Tatya’s 200th

Anniversary, Bogus FIR against Bhagat Singh, Buddha’s Begging
bowl, Arab Serai & Role of Cinema

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7/1/2014 [Current] April-Week1-P1: Economy-Monetary Policy update,GI Tagging for Kanauj Attar,Predatory Pricing by Spicejet, BIS new labelling

t, BIS new labelling guidlines for electronics - Mrunal

    [Current] April-Week1-P1: Economy-Monetary  >> Current Affairs Weekly

ANKIT { Tabhi bro i cited 3. #3: Muradabad Metal craft UP

mind the complex paper 2 } – 5. #5: Firozabad Glassware,

SIKANDAR { Mrunal Current Affairs for April week 1 (1st to 7th

GOYAT { congratssss E1: RBI: Monetary Policy April 2014

DHARAM PAL { IFos

AVI { @ankit dont u think

SONU VERMA { Nice

PRADEEP { Bt. brinjal

ANKIT { 80-85 } – [CAPF]

23-Jul: MNIT Jaipur Tech.asst. CAD as % of GDP - 2%

(GATE2014) maintenance, staff salary even on such non-minimum balance dormant

30-Jun: AIIMS Jodhpur

#1: Dharmavaram Pattu Silk Sarees: Andhra

Lepakshi temple murals (near Anatapur)

Acid Dye (theory)

used in silk industry and not alkaline dyes).

Silk Pattu Sarees And Paavadas for grand occasions

#2: Kannauj Attar, UP

Raw material: base

The Deg & Bhapka system is based on hydro-distillation technique.

Raw material: flowers:

Local crops of Kannauj= Jasmine, Kadamb, Merigold, Henna etc. remaining

Khus Bharatpur (Rajasthan)

Chameli Chandoli in Jaunpur district,

Raat Rani Viaywara district (Andhra Pradesh),

Kewra Burahanpur, Ganjam in Orissa

Saffron Jammu & Kashmir.

Spices and herbs North-East States of India and Himalaya

Products: Fragrances (attars), incense sticks, dhoop/hawan material, gulkand

#3: Muradabad Metal craft UP

Designs influenced from Iranian style. Usually, king travelling on elephant,

#4: Saharanpur woodcraft, UP

wood/timber of mango, rosewood and shesham

Srinagar Woodcraft geometrical designs

Mysore woodcraft human and animal motifs

Wax polish used to increase brightness.

Products: Coat Hangers, Cupboards, Dressing Tables, Embroidery Frames, Table

#5: Firozabad Glassware, UP

Soda ash and Silica

Glass ware manufactured using mouth blown technique

Products: glass bangles, chandeliers, glass status of gods and goddess

E3: Predatory pricing by Aviation Companies

1. What is predatory pricing: how is it good/bad for business/ economy?

3. What has DGCA done in this regard?

What is Predatory Pricing?

Means deliberately selling product below the cost price, to eliminate

Why Spicejet accused of Predatory pricing?

They’ve launched a scheme “Rajiv Gandhi One Rupee Air ticket”

1. Offer valid only if you book tickets during April 1 to 3.

So this is both “predatory pricing” + misguiding customers.

What has DGCA done?

Directorate General of Civil Aviation (DGCA) is empowered to take action

E4: BIS New labelling guidelines for Electronics

Q. (GS2-Regulatory bodies) What is BIS? Why is the electronics industry opposed

Bureau of Indian standards is a statutory body under Consumer affairs

1. Earlier companies had to merely put stickers on the products.

IT & electronics Industry is opposed to this guideline because:

1. Increase in the production cost. In certain cases almost by 100%.

Visit Mrunal.org/CURRENT for entire Archive weekly current affairs compilations

Previously in this category