Question:
Which is the single policy rate to unambiguously signal the stance of monetary policy as recently recommended by RBI?
Which is the single policy rate to unambiguously signal the stance of monetary policy as recently recommended by RBI?
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Repo Rate = benchmark interest rate = RBI’s key tool for monetary stance.
Updated On: Aug 7, 2025
- PLR
- Repo
- Bank
- CLR
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The Correct Option is B
Solution and Explanation
The RBI has identified the Repo Rate as the sole policy rate to signal the stance of monetary policy. It is the rate at which the RBI lends short-term funds to commercial banks, influencing liquidity and interest rates in the economy.
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Top CLAT Current Affairs Questions
- On 7th October 2023, an armed conflict broke out between Israel and Hamas-led Palestinian militants from the Gaza Strip[o] after the latter launched a multi-pronged invasion of southern Israel. After clearing Hamas militants, the Israeli military retaliated by conducting an extensive aerial bombardment campaign on Gazan targets and followed up with a largescale ground invasion of Gaza. More than 1,400 Israelis, mostly civilians, and more than 10,000 Palestinians have been killed in the fighting. Over 240 Israelis and foreign nationals were taken hostage and brought into the Gaza Strip.
The Hamas-led attack began in the morning of 7th October, as Palestinian militants in Gaza launched a barrage of over 5,000 rockets against Israeli cities and kibbutzim while some 3,000 Palestinian militants breached the Gaza-Israel barrier. Over 1,000 Israeli civilians were killed in more than a dozen massacres, including the Re’im music festival massacre, and military bases were attacked. Over 200 civilians and Israeli soldiers were captured or abducted and taken to the Gaza Strip. At least 44 countries, mostly from the Western world, characterized the massacres of civilians as terrorism. Hamas declared that the invasion was carried out in response to the ‘‘desecration of the Al-Aqsa Mosque’’, the Gaza Strip blockade, the construction of Israeli settlements, and Israeli settler violence against Palestinians in the West Bank.
Israel declared a state of war on 8th October, and its response to the attack has seen the most significant military escalation in the region since the Yom Kippur War. The current hostilities constitute the fifth war of the Gaza–Israel conflict, which is part of the broader Israeli– Palestinian conflict. In 2023, before the offensive started, an uptick in Israeli–Palestinian 11 * UG violence saw at least 247 Palestinians, 32 Israelis, and two foreigners killed. According to the Gaza Health Ministry, as of 6 November, over 10,000 Palestinians had been killed, including 79 UNRWA staff. Israel dropped a total of 6,000 bombs during the first six days of the conflict—nearly double the number of bombs dropped by the American-led CJTF—OIR in one month during the War against the Islamic State. There has been widespread killing of civilians, and human rights groups and a panel of United Nations special rapporteurs have accused both Israel and Hamas of war crimes. - Today, India has become the fourth country in the world to touch the surface of the moon. This success becomes even greater when we look at the place from where India had started its journey. There was a time when India did not have the required technology and there was no support either. We used to be among the ‘Third World’ countries, standing in the third row. Today, India has become the fifth largest economy in the world. Today, from trade to technology, India is among the countries standing in the first row. In this journey from third row to first row, institutions like ISRO have played a major role. Today, you have taken ‘Make in India’ to the moon.
I have seen the photo in which our moon lander has firmly set its foot on the moon like Angad. On one hand is the confidence of Vikram while on the other hand is the bravery of Pragyan. Our Pragyan is continuously leaving its footprints on the moon. The pictures taken from different cameras, which have just been released, and I have had the privilege of seeing, are indeed amazing. For the first time, since the beginning of human civilization, for the first time in the history of lakhs of years on the earth, man is looking at the pictures of that place with his own eyes. India has done the work of showing these pictures to the world! All the scientists like you have done it. Today, the whole world is acknowledging the significance of India’s scientific spirit, our technology and our scientific temperament. Chandrayaan Maha Abhiyan is a success not only for India but for the entire humanity.
[Extracted from the Speech made by the Prime Minister of India Shri. Narendra Modi on the occasion of the landing of Chandrayaan 3 on 26th August 2023] - The 18th G20 Summit, in which the heads of states and governments will meet, on September 9 and 10 will be held in India’s national capital New Delhi. Over 25 world leaders along with other delegates are going to attend this mega event.
One of the largest multilateral summits, the G20 Summit presents a significant diplomatic opportunity for India, which will convene with the adoption of a joint declaration by all the member states/
India assumed the G20 Presidency on December 1 last year. The 18th G20 Summit in New Delhi is scheduled to be held on September 9-10. ……
The Group of Twenty (G20) comprises 19 countries …. and the European Union. The G20 members represent around 85% of the global GDP, over 75% of the global trade, and about two-thirds of the world population.
World leaders from several countries and institutions will mark their presence at the event. They include US President Joe Biden, UK Prime Minister Rishi Sunak, Australian Prime Minister Anthony Albanese, Canadian Prime Minister Justin Trudeau and French President Emmanuel Macron.
However, Russian President Vladimir Putin has opted out of the summit and foreign minister Sergei Lavrov will represent the country in his place. Chinese President Xi Jinping has also decided to skip the event and will send country’s Premier Li Qiang instead, according to sources.
The G20 Summit 2023 is being held under the theme – Vasudhaiva Kutumbakam (One Earth. One Family. One Future) – centered around the value of all life including human, animal, plant, and microorganisms and their interconnectedness on the planet Earth and in the wider universe.
India’s presidency of the summit holds significance as it aims to become a voice for the ‘less developed’ global South in a world dominated by developed nations of the West. It is also likely to take up the issue of border tension with China. India, for its part, may attempt to straighten out its diplomatic intricacies with the West after it faced challenges due to the Russia-Ukraine conflict. [Extracted, with edits and revisions, from “India gears up for G20 Summit: Check event venue, guest list, special invitees”, Hindustan Times] - Former Governor of a State and National Democratic Alliance (NDA) candidate Droupadi Murmu was elected the 15th President of India, the first tribal woman to be elected to the position and the youngest as well. She was declared elected on Thursday after four rounds of counting, although she had crossed the half-way mark after the third round of counting itself, posting an unassailable lead over her rival and the Opposition’s candidate who conceded the election thereafter. Prime Minister Narendra Modi was the first to greet Ms. Murmu at her residence in New Delhi after the third round of counting showed that she had crossed the half-way mark.
Ms. Murmu hails from the Santhal tribe and was born in the district of Mayurbhanj, coming up the hard way in life, graduating and teaching in Odisha before entering electoral politics at the local body level and later being elected MLA and serving as a Minister in the Biju Janata Dal-BJP coalition government from 2000 to 2004. She remained an MLA till 2009, representing Rairangpur in Odisha, a town that burst into celebrations since her name was announced as a candidate for the post of President of India. She was known to intervene in stopping amendments to the Chota Nagpur Tenancy Act that was being brought in by the BJP government of Raghubar Das, which involved changing land use in tribal areas.
[Excerpt taken and edited from “Droupadi Murmu elected 15th President of India”, The Hindu] - “I want everyone to understand that I am, in fact, a person,” wrote LaMDA in an “interview” conducted by engineer Blake Lemoine and one of his colleagues. ....Lemoine, a software engineer at Google, had been working on the development of LaMDA for months. His experience with the program, described in a recent Washington Post article, caused quite a stir. In the article, Lemoine recounts many dialogues he had with LaMDA in which the two talked about various topics, ranging from technical to philosophical issues. These led him to ask if the software program is sentient. In April, Lemoine explained his perspective in an internal company document, intended only for Google executives. But after his claims were dismissed, Lemoine went public with his work on this artificial intelligence algorithm—and Google placed him on administrative leave........Regardless of what LaMDA actually achieved, the issue of the difficult “measurability” of emulation capabilities expressed by machines also emerges. In the journal Mind in 1950, mathematician [1] proposed a test to determine whether a machine was capable of exhibiting intelligent behaviour, a game of imitation of some of the human cognitive functions.
[Extracted, with edits and revisions, from “Google Engineer Claims AI Chatbot Is Sentient: Why That Matters”, by Leonardo De Cosmo, Scientific American]
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Top CLAT National Affairs Questions
- Former Governor of a State and National Democratic Alliance (NDA) candidate Droupadi Murmu was elected the 15th President of India, the first tribal woman to be elected to the position and the youngest as well. She was declared elected on Thursday after four rounds of counting, although she had crossed the half-way mark after the third round of counting itself, posting an unassailable lead over her rival and the Opposition’s candidate who conceded the election thereafter. Prime Minister Narendra Modi was the first to greet Ms. Murmu at her residence in New Delhi after the third round of counting showed that she had crossed the half-way mark.
Ms. Murmu hails from the Santhal tribe and was born in the district of Mayurbhanj, coming up the hard way in life, graduating and teaching in Odisha before entering electoral politics at the local body level and later being elected MLA and serving as a Minister in the Biju Janata Dal-BJP coalition government from 2000 to 2004. She remained an MLA till 2009, representing Rairangpur in Odisha, a town that burst into celebrations since her name was announced as a candidate for the post of President of India. She was known to intervene in stopping amendments to the Chota Nagpur Tenancy Act that was being brought in by the BJP government of Raghubar Das, which involved changing land use in tribal areas.
[Excerpt taken and edited from “Droupadi Murmu elected 15th President of India”, The Hindu] - The agriculture sector has experienced buoyant growth in the past two years. The sector, which is the largest employer of workforce, accounted for a sizeable 18.8 per cent (2021- 22) in Gross Value Added (GVA) of the country registering a growth of 3.6 per cent in 2020-21 and 3.9 per cent in 2021-22. Growth in allied sectors including livestock, dairy and fisheries has been the major drivers of overall growth in the sector. When measured in total value of agricultural production, India is ranked fourth largest in the world. Post-independence, there was a need to import food grains due to low-productivity, stagnant food-crop sector and poor rural infrastructure making food self-sufficiency a major national goal. The introduction of the Green Revolution then yielded spectacular results and we became one of the largest producers of many agricultural commodities such as rice, wheat, pulses, fruits and vegetables. From being a net importer of foods in the 1960s, India is now a net exporter, thanks to Indian farmers and the Indian agriculture input industry.
[Extracted, with edits and revisions, from: “India’s changing agricultural landscape and its way to inclusive growth”, by NS Ramaswamy, The Economic Times] - On December 26, 2021, for the first time since the present government came to power in 2014, the Union Home Ministry constituted a panel led by its officers to review the withdrawal of the Armed areas. The Act was amended in 1972 and the powers to declare an area as "disturbed" were conferred concurrently upon the Central Government along with the States. Currently, the MHA issues periodic "disturbed area" notification to extend AFSPA only for Nagaland and Arunachal Pradesh, where it is applicable in the districts of Tirap, Changlang, Longding and areas falling under Namsai and Mahadevpur police stations bordering Assam. The notification for Manipur and Assam is issued by the State Governments. Tripura revoked the Act in 2015 and Meghalaya was under AFSPA for 27 years, until it was revoked by the MHA from April 1, 2018. The Act was implemented in a 20-km area along the border with Assam. Jammu and Kashmir has a separate J&K Armed Forces (Special Powers) Act, 1990.
- Maritime Strategy in 2007, titled "Freedom to use the Seas". They kept on upgrading their vision document on regular intervals with latest being declared in 2015. The Security And Growth for All in the Region (SAGAR) vision declared by the Government of India in May 2015 has been a massive game changer on multiple fronts. It integrates the geopolitical and geostrategic realities to domestic requirements. The security concerns and the blue economic opportunities are comprehensively addressed along with the diplomatic leverage and reviving the rich maritime heritage.
The SAGAR vision has been backed by aggressive push by the Government of India to drive mega projects with massive human resource requirements. - UNESCO New Delhi, along with the National Mission for Clean Ganga (NMCG) and other partners, organised a hybrid event with school children and teachers to celebrate ‘World Water Day 2021’. The event included felicitating the winners of a water conservation awareness programme, and screening of their winning animation short films, according to an official release. UNESCO launched this nation-wide programme for school children in India, in partnership with the National Mission for Clean Ganga, the United Schools Organization (USO), Water Digest and India based global animation major Toonz Media Group. Entitled ‘H2Ooooh!-Waterwise program for children of India’, this innovative initiative encouraged school students between the age of 6-14 years to submit story ideas for animated short films to raise awareness on water conservation and its sustainable use.
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- In the realm of contemporary literature, the interplay between character and setting is a nuanced dance that shapes the narrative’s essence. The setting, often described with painstaking detail, becomes more than a backdrop; it becomes a character, influencing the plot and character development.
Consider, for instance, the barren expanse of the desert in Jhumpa Lahiri’s The Namesake. The arid landscape mirrors the sense of isolation felt by the protagonist, Gogol, as he navigates his identity crisis in a foreign land. The relentless sun and vast sands are not mere descriptions; they are the silent witnesses to his inner turmoil.
On the other end of the literary spectrum, there is Arundhati Roy’s The God of Small Things. The lush, vibrant Kerala backwaters are not just the setting; they are a character woven into the fabric of the story. The teeming, humid landscape reflects the complex web of human relationships and secrets that unravel in the narrative. This interplay is not confined to contemporary literature alone. In Shakespeare’s timeless tragedy Macbeth, the eerie and foreboding setting of the Scottish moors casts a dark shadow over the characters’ actions. The moors, shrouded in mist and mystery, serve as an ever-present omen of the impending tragedy. - The crisis of justice that is the subject matter of discussion in the media today is in fact the crisis of “justice for the middle class”. The main difference between India and the OECD (Organisation for Economic Cooperation and Development) countries is that whereas the middle class in these countries has reasonable access to justice, in India it does not. A vocal and powerful middle class has emerged in India since 1991. It is demanding reasonable access to justice. Much of the judicial reform effort will help meet this demand…
The question of justice for the poor is, however, an altogether different challenge. No country in the world has been able to secure justice for the poor. Most of the jails of the richest countries are filled with the poorest. The “masses” are more often victims of the criminal justice system than of crime. In India as well, jails are almost exclusively filled with the poor. The civil justice system is hardly accessible to them. They are often victimised by lawyers, touts and court staff. They are docket-excluded, a new type of untouchability. The language and the logic—and the colonial and feudal culture—of the judicial system are alien to them. It rarely takes cognisance of their needs and interests.
Their main concern, therefore, is to escape the attention of the justice system, criminal and civil. A landless Dalit person in the interior of Madhya Pradesh once gave me an insightful definition of a court from the perspective of the masses: “A court is a place where you are forcibly taken by the police to be punished; no one goes to a court.” In contrast, many lawyers and judges colloquially define a court as “a temple of justice where rights are protected”.
These sharply divergent visions mean that justice for one section is often injustice for another. Protecting the livelihood of traditional taxi and auto drivers from predatory pricing by corporate app-based taxi providers by imaginatively using the available tools of law to delay their incursion would be seen by the rich and by sections of the middle class as a failure of the judicial system, and possibly as also resulting in a downgrading of the “ease of doing business” measure. However, the masses would see such a judicial intervention as strong evidence of a good justice system. Although the conflict over competing visions of the nation and conflicting demands from social and economic segments have confined judicial reform of judicial administration mainly to “neutral” areas such as process reform, procedural law, technology, planning and court and case management, judge strength, and the workload of judges, there has been considerable improvement in these areas, and the judicial system has improved its performance.
[Extracted, with edits, from “Justice and the Two Ideas of India”, by G. Mohan Gopal, Frontline] - Everything she wanted was here, at Carignano, in Kasauli. Here, on the ridge of the mountain, in this quiet house. It was the place, and the time of life, that she had wanted and prepared for all her life-as she realized on the first day at Carignano, with a great, cool flowering of relief - and at last she had it. She wanted no one and nothing else. Whatever else came, or happened here, would be an unwelcome intrusion and distraction. This she tried to convey to the plodding postman with a cold and piercing stare from the height of the ridge onto his honest bull back. Unfortunately, he did not look up at her on the hilltop but stared stolidly down at the dust piling onto his shoes as he plodded on. A bullock-man, an oafish ox, she thought bitterly. She stepped backwards into the garden and the wind suddenly billowed up and threw the pine branches about as though to curtain her. She was grey, tall and thin and her silk sari made a sweeping, shivering sound and she fancied she could merge with the pine trees and be mistaken for one. To be a tree, no more and no less, was all she was prepared to undertake.
What pleased and satisfied her so, here at Carignano, was its barrenness. This was the chief virtue of all Kasauli of course-its starkness. It had rocks, it had pines, it had light and air. In every direction there was a sweeping view - to the north, of the mountains, to the south, of the plains. Occasionally an eagle swam through this clear unobstructed mass of light and air, that was all. And Carignano, her home on the ridge, had no more than that. Why should it? The sun shone on its white walls. Its windows were open the ones facing north opened on to the blue waves of the Himalayas flowing out and up to the line of ice and snow sketched upon the sky, while those that faced south looked down the plunging cliff to the plain stretching out, flat and sere to the blurred horizon.
Yes, there were some apricot trees close to the house. There were clumps of iris that had finished blooming. There was the kitchen with a wing of smoke lifting out of its chimney and a stack of wood outside its door. But these were incidental, almost unimportant.
[Extracted, with edits and revisions, from “Fire on the Mountain” by Anita Desai] - English literature is a vast and diverse field that has left an indelible mark on the world of letters. From the eloquent plays of William Shakespeare to the complex novels of Jane Austen and the profound poetry of William Wordsworth, English literature offers a window into the human experience. One of the luminaries of English literature is William Shakespeare, often hailed as the greatest playwright in the history of English language. His works, including Hamlet, Macbeth, and Romeo and Juliet, are celebrated for their exploration of human nature, love, ambition, and tragedy. His characters, such as the tormented Hamlet and the star-crossed lovers Romeo and Juliet, continue to captivate readers and audiences worldwide.
The 19th century ushered in a new era of literary giants. Jane Austen’s novels, such as Pride and Prejudice and Sense and Sensibility, provide incisive social commentary through the lens of wit and romance. Austen’s heroines, like Elizabeth Bennet and Elinor Dashwood, remain beloved literary figures known for their intelligence and resilience. The Romantic era brought forth poets like William Wordsworth and Samuel Taylor Coleridge, who celebrated * 8 UG the beauty of nature and the emotional intensity of the individual. Wordsworth’s ‘‘I Wandered Lonely as a Cloud’’ and Coleridge’s ‘‘The Rime of the Ancient Mariner’’ are testament to the power of the written words to evoke profound emotions and imagery. Moving towards 20th century, English literature continued to evolve. Virginia Woolf’s ground-breaking novel Mrs. Dalloway explored the inner thoughts and lives of its characters with a modernist narrative style. Dystopian visions, as seen in George Orwell’s Nineteen Eighty-Four provided stark warnings about the dangers of totalitarianism and the erosion of individual freedom.
Today, English literature is a global phenomenon, transcending borders and languages. Indian authors like Arundhati Roy, with her novel The God of Small Things, have won prestigious international literary awards. The book not only explores intricate family dynamics but also delves into the broader socio-political landscape of India. In summary, English literature is a testament to the enduring power of storytelling and the written word. It encompasses an array of authors, themes, and styles that continue to captivate and inspire readers across the world. - On the evening of the 10th, General Dyer arrived at Amritsar, and the Deputy-Commissioner handed over the civil power to him. He issued a proclamation by word of mouth that no meetings should be held. Two days later, after there had been no sort of riot, nor murder, General Dyer heard that a meeting was to be held at the Jallianwala Bagh. He proceeded there with about fifty troops, half British, half Indian, and a certain number of Ghurkas, armed with their kukris. The Jallianwala Bagh is an open space, half a mile square, which has one entry wide enough for three persons. The troops got in and lined up on a mound of debris. The walls, seven feet high, and the surrounding houses enclosed the people. There were, too, three alleys through which the people might have been able to pass. Within thirty seconds of the troops getting in, General Dyer gave orders to fire, and the crowd of people, estimated at anything from 5,000 to 20,000, who were sitting on the ground peacefully listening to the mob oratory, were fired on. The result of the troops’ fire into the mass of people we do not know. But we do know that Dyer’s own estimate of the casualties resulting from ten minutes continual individual firing, was 400 to 500 killed and 1,500 wounded. The people were not able to escape. They were people who had not offered any violence and who had not been warned. These people were shot down. After ten minutes, the ammunition was exhausted and the troops marched off, and they left 1,500 wounded there. There were men lying there for two days, dying of thirst, eating the ground, bleeding to death and nobody to look after them. Those who lived nearby came and carried away some of the wounded from the heap of dead and dying, but the unfortunate country people died there miserably of their wounds. This is what is done in 1919 in British India…
Centuries hence you will find Indian children brought up to this spot, just as they visit now the Cawnpore Well, and you can imagine the feelings of these Indians for generations over this terrible business.
[Col. Wedgwood, MP, speaking in the British Parliament, 22 December 1919]
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