#  Small savings

• The government has sharply slashed the rates on all small savings instruments for the first quarter of 2021-22.

• The government has brought down the rate of return on the Provident pension fund down from 7.1% to 6.4%.

• The government resets the interest rate on small savings instruments every quarter, this round of rate cuts assumes significance as retail inflation has been breaching the 6% mark and government is keen to lower interest rates.

# Pakistan allows import

• Partially reversing a two year old decision to suspend trade with India, pakistan announced on monday that would allow the import of cotton and sugar from across the border.

• The decision follows the line of control (LOC) ceasefire announced by India and Pakistan in February.

• These moves are seen as a part of larger dialogue process to de-freeze ties.

# Assam elections

• The second phase of Assam election is expected to be a test for the pro-citizenship (amendment) act (CAA) sentiment in the Bengali dominated Barak valley.

• The first phase of polling was based on anti-caa sentiments in assamese dominated Brahmaputra valley.

• Barak valley has 15 of the 39 phase two seats. Eight of these are hindu majority and seven are muslim majority.

# Covid-19 vaccine

• A subject expert committee (SEC) will take up Dr. reddy’s laboratories applications seeking emergency use authorisation for russia’s sputnik v vaccine on april 1.

• Health ministry tells states to ensure timely utilisation of stocks to avoid expiry and keep vaccine wastege below 1%.

• Covaxin supply to brazil hits a roadblock.

# Inflation targeting

• The centre has decided to retain the inflation target of 4% with a tolerance band of 2%.

• This has been decided by the monetary policy committee of the RBI for coming five years.