Sarat Chandra IAS Academy

Important Terms in 24th October -2020 News

Central Bureau of Investigation:

  • The CBI is the premier investigating police agency in India. It functions under Deptt. of Personnel, Ministry of Personnel, Pension & Public Grievances, Government of India.
  • The origins of CBI can be traced back to the Special Police Establishment (SPE) set up in 1941 in order to investigate cases of bribery and corruption in the War & Supply Department of India during World War II (1939-45).
  • The need for a Central Government agency to investigate cases of bribery and corruption was felt after the end of World War II. So, DSPE (Delhi Special Police Establishment) Act, 1946 was brought that gave the legal power of investigating cases to CBI.
  • It is also the nodal police agency in India which coordinates investigation on behalf of Interpol Member countries.

 

Foreign Currency Assets:

  • FCA are assets that are valued based on a currency other than the country’s own currency.
  • FCA is the largest component of the forex reserve. It is expressed in dollar terms.
  • FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
    -Currency appreciation refers to the increase in value of one currency relative to another in the forex markets.
    -Currency depreciation is a fall in the value of a currency in a floating exchange rate system.
  • In a floating exchange rate system, market forces (based on demand and supply of a currency) determine the value of a currency.

 

Financial Action Task Force:

  • Formation: The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 during the G7 Summit in Paris.
  • Objectives: To set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.
  • Secretariat: Its Secretariat is located at the Organisation for Economic Cooperation and Development (OECD) headquarters in Paris.
  • Member Countries: The FATF currently has 39 members including two regional organisations — the European Commission and Gulf Cooperation Council. India is a member of the FATF.
  • Decision Making Body: The FATF Plenary is the decision making body of the FATF. It meets three times per year.

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