RBI announces a number of measures to curb rupee volatility; Hikes lending rates for banks; To conduct sale of Government

Securities of 12 !!! crore rupees"

#rime $inister to discuss %&I'related issues (it) senior *abinet members today" $onsoon session of #arliament to begin from t)e +t) of ne,t mont)"
$yanmar #resident promises to release all political prisoners by t)e end of t)is year"

India bag nine medals including four Gold in International -out) Bo,ing *)ampions)ips in Serbia"
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In a move to stem the continuing fall of the rupee, the Reserve Bank of India, last night, came out with a number of measures, including hiking the lending rates for banks and sucking up of 12 thousand crore rupees. The measures came after high level meetings between the Prime inister and the !inance inister, followed b" discussions with RBI #overnor $ %ubbarao "esterda". The rupee had lost && paise to close at '( rupees )( paise "esterda", after touching the over *1+level last week. ,nder the measures announced, the arginal %tanding !acilit", %! rate has also been increased to 1-.2' per cent from the current ).2' per cent. .ccordingl", the bank rate has also been ad/usted to 1-.2' per cent.
%! allows banks to borrow mone" from the central bank at a higher rate when there is significant li0uidit" crunch.The RBI will conduct the sale of #overnment of India %ecurities of 12 thousand crore rupees on the 1)th of 1ul" from the market, in a move to make the rupee dearer. The

central bank said, it could take li0uidit" situation and

more

measures depending

on

market

conditions,

the macro+economic developments.2e spoke to senior economist, 1a"anto Ro" 3haudhar" on RBI4s measures.
"The Reserve Bank's move last night to shore up the rupee is one of the toughest, which it has taken since the laymen brothers crisis hit the world financial markets in 200 ! "t increased the short term lending rates to banks, and it has capped bank borrowings from RB" at #$ thousand crores, additional borrowing can be had at a much higher rates and RB" is also trying to suck up rupees from the market issuing fresh bonds! These are moves which will certainly defend the rupee dollar rate for the time being, but in the longer run it is going to hurt lending to "ndian corporates!"

eanwhile, the RBI has imposed fines totaling 5(.' crore rupees on 22 private and public sector banks, including %BI, P6B and 7es Bank for violating 873 or 8now 7our 3ustomer norms. It also gave cautionar" letters to seven, including 3itibank and %tan3hart, following an e9pose made b" an online portal. ./0101./ Planning 3ommission $eput" 3hairman ontek %ingh .hluwalia has said that the economic growth in 2-1&+15 is likel" to be better than last "ear4s ' per cent. :e said this at an event organised b" the Indian Private ;0uit" and <enture 3apital

.ssociation in 6ew $elhi "esterda". India4s growth rate slipped to a decade low of ' per cent in 2-12+1& due to the global economic slowdown as well as domestic factors. r. .hluwalia said that b" 2-15, the ;uro=one will veer towards positive growth. :e also said there has been no change in official estimates of economic growth pro/ection for 2-1&+15 so far. ./0101./ Prime inister anmohan %ingh will discuss the proposal to hike foreign investment caps in sectors like Telecom, Retail and $efence with his senior 3abinet colleagues toda". .n official said in 6ew $elhi that the other issue, which is likel" to figure in the meeting, is the concern raised b" the 3ommerce and Industr" inistr" on the increasing number of ac0uisitions of domestic pharmaceutical companies b" foreign firms. The $epartment of Industrial Polic" and Promotion has raised concerns over a spate of ac0uisitions of domestic pharma firms b" multinationals. eanwhile, to clear the backlog of 2 lakh crore rupee railwa" pro/ects that have been stuck due to lack of funds for over a decade, Prime inister anmohan %ingh has approved the constitution of an inter+ministerial group, consisting of the finance secretar", Railwa" Board chairman and Planning 3ommission secretar". The group will come up with a creative financing+cum+implementation mechanism for enhancing investment and clearing the 2 lakh crore rupee backlog in a prioritised manner. The %teering #roup, formed b" the Prime inister, to accelerate infrastructure investments worth three lakh crore rupees, will hold its first meeting on !rida". ./0101./ ;9pressing its reservation in ad/udicating polic" decisions, the %upreme 3ourt has observed that the remed" against #overnment>s polic" decisions lies with the people, who can disapprove them during elections while casting their votes. . bench of /ustices 38 Prasad and < #opala #owda said, in respect of polic", the court has ver" limited /urisdiction. It also said that courts should maintain /udicial restraint and should not encroach upon the e9ecutive or legislative domain while ad/udicating #overnment>s polic" decisions and should step+in onl" when the" are inconsistent with the 3onstitutional laws. ./0101./ The onsoon session of Parliament will begin from the 'th of ne9t month and will continue till &-th of .ugust. . decision to this effect was taken b" the 3abinet 3ommittee on Parliamentar" .ffairs, headed b" $efence inister .8 .nton", "esterda". The ordinance on the !ood %ecurit" Bill will come up for ratification during the session. ?ther important economic legislations, including @and .c0uisition, Insurance, Pension, 3ompanies and $irect Ta9es 3ode Bills are likel" to be taken up for consideration during the session.
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"anmar President Thein %ein has promised to release all political prisoners b" the end of this "ear. The President told this to an audience in @ondon "esterda". %ein said, he thought a nationwide ceasefire was possible in the coming weeks for the first time in si9 decades, after the government signed a peace deal aimed at ending the final ethnic conflict last month. %ein, who met Prime inister $avid

3ameron, also said that a special committee is reviewing ever" political prisoner4s case.The President is on a two+da" visit to Britain to talk trade, aid and democrac".
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Russian President <ladimir Putin has said that he wants ;dward %nowden to leave. %nowden has been holed up at a oscow airport for the past three weeks. %nowden, who had divulged details of ,% government intelligence programmes, flew to oscow4s %heremet"evo airport from :ong 8ong on the 2&rd 1une, in the hope of travelling on to a countr" that would offer him protection from the ,nited %tates. Putin said, 2ashington had trapped %nowden b" preventing him from reaching other countries that might shelter him but, Russia will grant him political as"lum onl" if he stops actions that could be harmful to the ,nited %tates.
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India has said that it is in discussions with Pakistan to finalise the dates for the meetings of the third round of the resumed dialogue. 2hile addressing a weekl" press conference, spokesperson, inistr" of ;9ternal .ffairs, %"ed .kbaruddin said, 6ew $elhi is holding discussions through diplomatic channels. ?n the issue of fuel subsid"
cut to Bhutan, .kbaruddin said that 6ew $elhi will soon hold intensive discussions with the new government in Thimpu. :e said that the issue of subsid" relates to deliver" mechanisms in India4s development partnership with Bhutan, and it has no political or other implications or intentions. ./0101./

The flood situation in ,ttar Pradesh remains grim, as moderate to heav" rainfall occurred at various places "esterda". a/or rivers continued to flow above the danger mark. .lmost the entire Terai region and some parts of eastern ,P are reeling under floods since the beginning of the monsoon season this "ear. The death toll has reached 15-, due to rain and flood related incidents.
./0101./ In ,ttarakhand, the process of providing relief amount to the ne9t of kin of persons, who went missing in the recent flash+floods, will begin toda". The kin of each missing person from ,ttarakhand will get ' lakh rupees, while those from other states will get &.' lakh rupees from the ,nion #overnment, in addition to the amount decided b" the respective %tate #overnments.The ,ttarakhand government has said that the number of persons missing during the disaster is ',A5). This information was given in a meeting attended b" the ,nion inister of %tate for Planning B Parliamentar" .ffairs, Ra/eev %hukla and the %tate 3hief inister, <i/a" Bahuguna in $ehradun "esterda". ./0101./

In 2est Bengal, the %tate ;lection 3ommission has ordered re+polling in 21 polling booths, in view of electoral malpractices in the second phase of Pancha"at elections in the state "esterda". ore from our correspondent. "%tate &lection 'ommission ordered re(polling in view of widespread violence and electoral malpractices in Burdwan and )ooghly districts! * persons were killed in separte incidents at Burdwan districts! %poradic clashes were also reported from +ongolkot, Raina in Burdwan and 'handitala, ,olwa(-adpur, ,andabaswar in )ooghly district! .oting were continued till late night in many polling booths and as per latest

information received, more than 0 per cent voting were recorded in * districts! /ri0it 'hakroborty, /"R 1&2%, 3olkata!" CDEFEFCD In ,ttar Pradesh, an !IR has been lodged against 1'- unknown students, following violent protests against the decision in reservation in the recruitments done b" the ,ttar Pradesh Public %ervice 3ommission, ,PP%3. Prohibitor" orders have also been imposed to maintain law and order. ?ur correspondent reports that the ,PP%3 had recentl" decided to implement the reservation polic" at ever" stage of ,PP%3 recruitments including the preliminar", main and interview levels.
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.nd now, news from the world of %portsG ""ndia has bagged an unprecedented nine medals, including four 4old, in the 4olden 4love of .o0vodina, an international 5outh bo6ing 'hampionship held in 3ikinda, %erbia! /! %ilambarasan in $2kg and +anish %olanki in 78kg bagged the coveted yellow metal in the +en's section, while Ra0esh 3umari in 9 kg and 'handa :danshive in $;kg won the 4old in the 2omen's division! <alitha ,rasad, 1eera0 ,arashar, +arthamma %attivada, -iksha and ,ema 'hotan bagged %ilver medals! /nd in 'hess, 4randmaster and former world 0unior champion /bhi0eet 4upta has won the 'ommonwealth 'hess 'hampionship title! 4upta scored nine points out of a possible eleven and had the best tie(break score to win the 4old medal! %outh /frican ,resident =acob >uma handed the 4old medal to the 2*(year old in a glittering ceremony! "n the open section, veteran 4randmaster -ibyendu Barua got the silver medal, while 4randmaster +R <alith Babu won the bron?e! %/..5 )/%/1 3)/1, @AR /"R 1&2%!" CDEFEFCD 234S#5#3R H35&6I23S

The war of words between the B1P and the 3ongress finds place on the front pages of man" dailies. 43ongress embraces secularism bur0a, takes odi head on4, reports the Hindustan Times. The #ioneer )eadlines the B1P4s intention to 4cash in on 6a o antra4, adding that the B1P4s state unit has decided to charge Rupees ' each from those attending 6arendra odi4s rall" in :"derabad ne9t month. 4?ne month on ',A5) still missing in ,ttarakhand4, reports the Tribune, whereas The :indu sa"s in an anchor stor", 4Bahuguna won4t declare the missing as dead "et4. The $ail Today reports, 48edarnath gets a new trek route4, adding that in a ma/or relief, the 6ehru Institute of ountaineering has recommended an alternative &5 km 8edarnath route to the ,ttarakhand #overnment.

43PI first part" to repl" to RTI 0uer"4, reports the Pioneer, sa"ing that the part" has provided information about its funding, but refused to give out details on the deliberations and agenda of its meetings. In what is cause of concern for the .rcheological %urve" of India, t)e Times of India reports that repeated paving of roads around the Ta/ ahal has resulted in the road level becoming higher then the Ta/ fore court thus allowing rain water to flood the comple9. ?n its front page the .sian .ge reports, 4Ishrat case G arms appear planted4, sa"ing that officers investigating the encounter case have made startling revelation G that the weapons found on the deceased did not bear an" blood stains. .nd finall", the Times of India and the .sian .ge report that the H;arth4s * "ear twitch alters da" lengthH. Periodic /umps generated in the ;arth4s core change the length of a da" ever" '.( "ears on our planet, a stud" in the ,niversit" of @iverpool has found.

./0101./ In some more 6ewsI The ,% space agenc" 6.%. has said, a tin" new moon has been spotted circling 6eptune. This will be the 15th known moon to be orbiting the farawa" planet. 6.%. said, the moon is the smallest ever glimpsed around 6eptune and is estimated to be about 12 miles in diameter. Based on observations from the :ubble %pace telescope, 6.%. confirmed that the moon is located about *' thousand 5 hundred miles from 6eptune. ./0101./