The Evening Wrap: RBI increases policy rate by 50 basis points

The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday voted unanimously to increase the policy repo rate by 50 basis points to 4.90% with immediate effect. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65%; and the marginal standing facility (MSF) rate and the Bank Rate to 5.15%. The MPC also decided unanimously to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth, RBI governor Shaktikanta Das said while announcing the rate hike. With the assumption of a normal monsoon in 2022 and average crude oil price (Indian basket) of US$ 105 per barrel, inflation is now projected at 6.7% in 2022-23, with Q1 at 7.5%; Q2 at 7.4%; Q3 at 6.2%; and Q4 at 5.8%, with risks evenly balanced. Around 75% of the increase in inflation projections can be attributed to the food group. Further, the baseline inflation projection of 6.7% for 2022-23 does not take into account the impact of monetary policy actions taken today, he said. De-board passengers who refuse to wear face mask in plane: DGCA to airlines Airlines must de-board any passenger before departure if they refuse to wear face mask inside an aircraft even after being warned, aviation regulator DGCA said on June 8. If any passenger refuses to wear mask or follow COVID-19 protocol in a flight mid-air, the airline may bar them from flying for a certain period of time by classifying them as “unruly passenger”, the Directorate General of Civil Aviation (DGCA) said in a circular. Besides, airport operators must take help of the local police and security agencies and levy fines on people not wearing face masks in terminals, it noted. The circular followed a Delhi High Court order of June 3 which said the “DGCA should issue separate binding directions to all staff persons deployed at the airports and in the aircraft, including flight attendants, air hostesses, captains/pilots and others, to take strict action against passengers and others who violate the masking and hygiene norms”. All such persons as are found violating the norms must be fined and persistent defaulters must be placed on the no-fly list, the court had said. The DGCA’s June 8 circular said airlines must ensure the passengers wear masks properly on flights and they are removed from faces only “under exceptional circumstances and for permitted reasons”. If a passenger needs an extra face mask, the airline must provide it, it noted. “The airline shall ensure that in case any passenger does not adhere to above instructions even after repeated warnings, he or she should be de-boarded, if need be, before departure,” it said. In case any passenger refuses to wear mask or violates the COVID-19 protocol even after repeated warnings in flight mid-air, he can be treated as “unruly passenger” as defined in the DGCA regulations, the circular said. The DGCA regulations give powers to airlines to ban passengers for a certain period of time after they have been declared “unruly”. Central Industrial Security Force (CISF) and other police personnel deployed at the entrance of the airport must ensure that no one is allowed to enter the premises without wearing a mask, it said. All airport operators must increase announcements and surveillance to ensure that passengers at terminal are wearing face masks properly and following COVID-appropriate behaviour at all times within the airport premises, it noted. “In case any passenger does not wear mask or refuses to wear mask and follow COVID-19 protocol, he should be fined as per the respective state law where the airport is located and he may even be handed over to security agencies,” it said. When Centre resumed scheduled domestic flights on May 25, 2020, after a two-month-long lockdown due to the COVID-19 pandemic, the DGCA had made it mandatory for passengers to wear masks and follow other COVID-19 protocol inside airport and aircraft. Supreme Court expresses disapproval over Medical Counselling Committee leaving NEET-PG seats vacant The Supreme Court on Wednesday expressed disapproval at the Medical Counselling Committee for leaving over 1,400 NEET-PG seats vacant. A Vacation Bench of Justices M.R. Shah and Aniruddha Bose said that approximately 1,456 vacant seats would mean a dearth of equal number of qualified doctors for the country. Justice Shah orally questioned the random increasing of seats during the counselling process and leaving them vacant at the end of it.“Not a single seat should be left vacant even for a single course. It is your duty... You cannot play with the future of students,” the court addressed the committee’s counsel. The court said fluctuations in seats added to the stress of the parents and students “What do you get in leaving seats vacant when we are in need of doctors?... Why is there no streamlining? Do you know the stress level of the students and parents?” the court asked the committee. Approximately 1,456 seats have remained vacant since May. The court said the move to hike the number of seats in the middle of the counselling process could even increase the chances of corruption in medical admissions. “There must be a cut-off,” the Bench said. The court was hearing a plea seeking a special round of counselling for the vacant seats available under the All-India Quota. The petition was preferred by the doctors who appeared in NEET-PG 2021. The committee’s counsel was told to file an affidavit in the course of the day, explaining the facts in detail and the court scheduled the case for hearing on Thursday. Supreme Court refuses to interfere in Tamil Nadu CM’s proposal for welfare workers A Vacation Bench of the Supreme Court on Wednesday refused to interfere in a proposal made by Tamil Nadu Chief Minister M.K. Stalin to accommodate willing ‘Makkal Nala Paniyalargal’ (MNPs) in 12,524 village panchayats across the State as ‘Employment Guarantee Scheme Work Coordinators‘ under MGNREGS on a priority basis for a monthly honorarium of ₹7,500. The Bench of Justices M.R. Shah and Aniruddha Bose said that only willing MNPs need to accept the offer and the State government, which had already stepped into action on the Chief Minister’s proposal, was not compelling them to agree. “It is very clear that only willing MNPs need to accept,” Justice Shah said. Senior advocate P. Wilson appeared for the State government and ‘Makkal Nala Paniyalargal Sangam’ in the case. The court also clarified that no prejudice should be caused to the rights of those among the MNPs who opted to continue their pending litigation before it rather than take up the government’s fresh offer to employ them in village panchayats. The ‘Makkal Nala Paniyalargal’ scheme was meant to create awareness about the “evils of consumption of liquor” under Article 47 of the Constitution read with Rule 10 (5) of the Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003. However, the scheme has been caught up in litigation since 2014 and appeals concerning it are currently pending in the Supreme Court. The Vacation Bench was hearing an application filed by the ‘Villupuram Mavattam Makkal Nalapaniyalargal Maruvazhvu Sangam’, claiming that the proposal of the Chief Minister was “completely adverse to the interest of the ‘Makkal Nala Paniyalargal’ ”. The application went on to claim that the “act of the State government is a threat to the life and interest of the ‘Makkal Nala Paniyalargal’ ”. The application urged the court to order status quo until the appeals pending in the top court were finally decided. “The pay scale offered by the State government to the ‘Makkal Nala Paniyalargals’ is very less as compared to the earlier special time scale of the ‘Makkal Nala Paniyalargals’. The State government is not giving any back wages for the livelihood lost by the ‘Makkal Nala Paniyalargals’ which is due to the past conduct of the State governments. In light of these facts and circumstances, the proposal of the State government is adverse to the interest of the ‘Makkal Nala Paniyalargals’, and hence, unacceptable” the application had said. The application blamed the State for deferring the hearing of the appeals in the Supreme Court “on many occasions”. “Thus, the ‘Makkal Nala Paniyalargals’ are entitled to back wages for their lost livelihood which is due to the past conduct of the State. Out of 13,500 ‘Makkal Nala Paniyalargals’, 1,800 have expired, 7,000 are above 53 years of age and around 1,500 are above 57 years of age,” the application had alleged. Imran Khan asks Pakistan government to sever ties with India over controversial remarks Imran Khan has condemned the controversial remarks made by now-suspended and expelled BJP leaders against Prophet Mohammad and asked the Pakistan government to sever ties with India and take a harsh position on the issue. The ousted Prime Minister, who is also the chairman of the Pakistan Tehreek-e-Insaf (PTI), made the demand on Tuesday while addressing the lawyers’ convention in Islamabad. He said the Pakistan government should follow the Arab countries and take a strong position against the Narendra Modi government. “The government should sever ties with India,” he said. “Indian products should be boycotted.” On Monday, Khan strongly condemned the “hateful attack by a BJP spokesperson” on the Prophet and accused the Modi government of “deliberately following a policy of provocation and hatred towards Muslims in India including inciting vigilante violence against them.” In Brief Mithali Raj, captain of India women’s ODI and Test teams, announced her retirement from all forms of international cricket on Wednesday. “I feel now is the perfect time to call curtains on my playing career as the team is in capable hands of some very talented young players and the future of Indian Cricket is bright,” Raj said in a statement on Twitter. Evening Wrap will return tomorrow [logo] The Evening Wrap 08 JUNE 2022 [The Hindu logo] Welcome to the Evening Wrap newsletter, your guide to the day’s biggest stories with concise analysis from The Hindu. [[Arrow]Open in browser]( [[Mail icon]More newsletters]( RBI increases policy rate by 50 basis points The Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) on Wednesday [voted unanimously to increase the policy repo rate by 50 basis points]( to 4.90% with immediate effect. Consequently, the standing deposit facility (SDF) rate stands adjusted to 4.65%; and the marginal standing facility (MSF) rate and the Bank Rate to 5.15%. [Reserve Bank of India Governor Shaktikanta Das addresses a press conference at the RBI headquarters in Mumbai on June 8, 2022. ] The MPC also decided unanimously to remain focused on withdrawal of accommodation to ensure that inflation remains within the target going forward, while supporting growth, RBI governor Shaktikanta Das said while announcing the rate hike. With the assumption of a normal monsoon in 2022 and average crude oil price (Indian basket) of US$ 105 per barrel, inflation is now projected at 6.7% in 2022-23, with Q1 at 7.5%; Q2 at 7.4%; Q3 at 6.2%; and Q4 at 5.8%, with risks evenly balanced. Around 75% of the increase in inflation projections can be attributed to the food group. Further, the baseline inflation projection of 6.7% for 2022-23 does not take into account the impact of monetary policy actions taken today, he said. De-board passengers who refuse to wear face mask in plane: DGCA to airlines [Airlines must de-board any passenger before departure if they refuse to wear face mask]( inside an aircraft even after being warned, aviation regulator DGCA said on June 8. If any passenger refuses to wear mask or follow COVID-19 protocol in a flight mid-air, the airline may bar them from flying for a certain period of time by classifying them as “unruly passenger”, the Directorate General of Civil Aviation (DGCA) said in a circular. Besides, airport operators must take help of the local police and security agencies and levy fines on people not wearing face masks in terminals, it noted. The circular followed a Delhi High Court order of June 3 which said the “DGCA should issue separate binding directions to all staff persons deployed at the airports and in the aircraft, including flight attendants, air hostesses, captains/pilots and others, to take strict action against passengers and others who violate the masking and hygiene norms”. All such persons as are found violating the norms must be fined and persistent defaulters must be placed on the no-fly list, the court had said. The DGCA’s June 8 circular said airlines must ensure the passengers wear masks properly on flights and they are removed from faces only “under exceptional circumstances and for permitted reasons”. If a passenger needs an extra face mask, the airline must provide it, it noted. “The airline shall ensure that in case any passenger does not adhere to above instructions even after repeated warnings, he or she should be de-boarded, if need be, before departure,” it said. In case any passenger refuses to wear mask or violates the COVID-19 protocol even after repeated warnings in flight mid-air, he can be treated as “unruly passenger” as defined in the DGCA regulations, the circular said. The DGCA regulations give powers to airlines to ban passengers for a certain period of time after they have been declared “unruly”. Central Industrial Security Force (CISF) and other police personnel deployed at the entrance of the airport must ensure that no one is allowed to enter the premises without wearing a mask, it said. All airport operators must increase announcements and surveillance to ensure that passengers at terminal are wearing face masks properly and following COVID-appropriate behaviour at all times within the airport premises, it noted. “In case any passenger does not wear mask or refuses to wear mask and follow COVID-19 protocol, he should be fined as per the respective state law where the airport is located and he may even be handed over to security agencies,” it said. When Centre resumed scheduled domestic flights on May 25, 2020, after a two-month-long lockdown due to the COVID-19 pandemic, the DGCA had made it mandatory for passengers to wear masks and follow other COVID-19 protocol inside airport and aircraft. Supreme Court expresses disapproval over Medical Counselling Committee leaving NEET-PG seats vacant The Supreme Court on Wednesday [expressed disapproval at the Medical Counselling Committee]( for leaving over 1,400 NEET-PG seats vacant. A Vacation Bench of Justices M.R. Shah and Aniruddha Bose said that approximately 1,456 vacant seats would mean a dearth of equal number of qualified doctors for the country. Justice Shah orally questioned the random increasing of seats during the counselling process and leaving them vacant at the end of it.“Not a single seat should be left vacant even for a single course. It is your duty... You cannot play with the future of students,” the court addressed the committee’s counsel. The court said fluctuations in seats added to the stress of the parents and students “What do you get in leaving seats vacant when we are in need of doctors?... Why is there no streamlining? Do you know the stress level of the students and parents?” the court asked the committee. Approximately 1,456 seats have remained vacant since May. The court said the move to hike the number of seats in the middle of the counselling process could even increase the chances of corruption in medical admissions. “There must be a cut-off,” the Bench said. The court was hearing a plea seeking a special round of counselling for the vacant seats available under the All-India Quota. The petition was preferred by the doctors who appeared in NEET-PG 2021. The committee’s counsel was told to file an affidavit in the course of the day, explaining the facts in detail and the court scheduled the case for hearing on Thursday. Supreme Court refuses to interfere in Tamil Nadu CM’s proposal for welfare workers  A Vacation Bench of the Supreme Court on Wednesday [refused to interfere in a proposal made by Tamil Nadu Chief Minister M.K. Stalin]( to accommodate willing ‘Makkal Nala Paniyalargal’ (MNPs) in 12,524 village panchayats across the State as ‘Employment Guarantee Scheme Work Coordinators‘ under MGNREGS on a priority basis for a monthly honorarium of ₹7,500. The Bench of Justices M.R. Shah and Aniruddha Bose said that only willing MNPs need to accept the offer and the State government, which had already stepped into action on the Chief Minister’s proposal, was not compelling them to agree. “It is very clear that only willing MNPs need to accept,” Justice Shah said. Senior advocate P. Wilson appeared for the State government and ‘Makkal Nala Paniyalargal Sangam’ in the case. The court also clarified that no prejudice should be caused to the rights of those among the MNPs who opted to continue their pending litigation before it rather than take up the government’s fresh offer to employ them in village panchayats. The ‘Makkal Nala Paniyalargal’ scheme was meant to create awareness about the “evils of consumption of liquor” under Article 47 of the Constitution read with Rule 10 (5) of the Tamil Nadu Liquor Retail Vending (in Shops and Bars) Rules, 2003. However, the scheme has been caught up in litigation since 2014 and appeals concerning it are currently pending in the Supreme Court. The Vacation Bench was hearing an application filed by the ‘Villupuram Mavattam Makkal Nalapaniyalargal Maruvazhvu Sangam’, claiming that the proposal of the Chief Minister was “completely adverse to the interest of the ‘Makkal Nala Paniyalargal’ ”. The application went on to claim that the “act of the State government is a threat to the life and interest of the ‘Makkal Nala Paniyalargal’ ”. The application urged the court to order status quo until the appeals pending in the top court were finally decided. “The pay scale offered by the State government to the ‘Makkal Nala Paniyalargals’ is very less as compared to the earlier special time scale of the ‘Makkal Nala Paniyalargals’. The State government is not giving any back wages for the livelihood lost by the ‘Makkal Nala Paniyalargals’ which is due to the past conduct of the State governments. In light of these facts and circumstances, the proposal of the State government is adverse to the interest of the ‘Makkal Nala Paniyalargals’, and hence, unacceptable” the application had said. The application blamed the State for deferring the hearing of the appeals in the Supreme Court “on many occasions”. “Thus, the ‘Makkal Nala Paniyalargals’ are entitled to back wages for their lost livelihood which is due to the past conduct of the State. Out of 13,500 ‘Makkal Nala Paniyalargals’, 1,800 have expired, 7,000 are above 53 years of age and around 1,500 are above 57 years of age,” the application had alleged. Imran Khan asks Pakistan government to sever ties with India over controversial remarks Imran Khan has condemned the controversial remarks made by now-suspended and expelled BJP leaders against Prophet Mohammad and [asked the Pakistan government to sever ties with India]( and take a harsh position on the issue. The ousted Prime Minister, who is also the chairman of the Pakistan Tehreek-e-Insaf (PTI), made the demand on Tuesday while addressing the lawyers’ convention in Islamabad. He said the Pakistan government should follow the Arab countries and take a strong position against the Narendra Modi government. “The government should sever ties with India,” he said. “Indian products should be boycotted.” On Monday, Khan strongly condemned the “hateful attack by a BJP spokesperson” on the Prophet and accused the Modi government of “deliberately following a policy of provocation and hatred towards Muslims in India including inciting vigilante violence against them.” In Brief [Mithali Raj during the FICCI Ladies Organisation (FLO) interactive session ‘Breaking The Boundaries with Indian Cricket Girls’ in New Delhi on October 24, 2017. ] [Mithali Raj, captain of India women’s ODI and Test teams, announced her retirement]( from all forms of international cricket on Wednesday. “I feel now is the perfect time to call curtains on my playing career as the team is in capable hands of some very talented young players and the future of Indian Cricket is bright,” Raj said in a statement on Twitter. 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