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  • [28th June 2024] The Hindu Op-ed: Reasi and the ‘years-old’ issue of cross-border terror 

    PYQ Relevance:

    Q Analyse the complexity and intensity of terrorism, its causes, linkages and obnoxious nexus. Also suggests measures required to be taken to eradicate the menace of terrorism. (UPSC IAS/2021)

    Q  Indian government has recently strengthed the anti-terrorism laws by amending the Unlawful Activities (Prevention) Act, (UAPA), 1967 and the NIA Act. Analyze the changes in the context of the prevailing security environment while discussing the scope and reasons for opposing the UAPA by human rights organisations. (UPSC IAS/2019)

    Mentor comment: Terrorism is the use of violence and intimidation, especially against civilians, to achieve political, ideological, or religious goals. It disrupts societal peace, spreads fear, and causes loss of lives and property. Combating terrorism requires global cooperation, robust intelligence, and addressing underlying issues like poverty, inequality, and political instability to prevent radicalization and promote peace.

    Let’s learn!

    Why in the News?

    • The Reasi terrorist attack on June 9 coincided with PM Narendra Modi’s third-term swearing-in.
    • This attack is reminiscent of the May 23, 2014, attack on the Consulate General of India (CGI) in Herat, Afghanistan, just before Modi’s first swearing-in.

    Terrorism: A Continuing Challenge

    • Potential links to Pakistani terrorist groups: The Reasi attack’s potential links to terrorist groups in Pakistan underscore a 35-year ongoing threat in J&K.
    • Inspiration from Afghan Jihad: Inspired by the Afghan Jihad, Pakistan believed similar tactics could pressure India in Kashmir.
    • Early 1990s developments: The Indian state and its security forces took time to develop effective counter-insurgency and counter-terrorism strategies in the early 1990s.

    Pakistan’s Commitment to the ‘Terror Cause’

    • Support from Pakistan Army and leaders: The Pakistan Army and political leaders like Nawaz Sharif and Benazir Bhutto supported J&K separatism through terror.
    • Bhutto’s stance in 1994: Benazir Bhutto refused to engage in talks with India in 1994 unless India addressed J&K on Pakistan’s terms, leading to no dialogue during her tenure.
    • Sharif’s 1997 initiative: Nawaz Sharif, during his second term as Prime Minister in 1997, sought a structured dialogue with India focusing on humanitarian issues and conflict resolution, with J&K as a priority.

    India’s Diplomatic Approach

    • Mid-1990s confidence: By the mid-1990s, India combined force with political activity, holding J&K Assembly elections in 1996.
    • Resolution through Simla Agreement: India aimed to resolve the external J&K issue peacefully through the Simla Agreement of 1972.
    • Pakistan’s use of Islamist non-state actors: Pakistan’s use of Islamist non-state actors to promote terrorism nullified the constraints of the Simla Agreement, making terrorism a strategic issue for India.

    Composite Dialogue and Pakistan’s Intransigence

    • 1998 bilateral composite dialogue: In 1998, India and Pakistan agreed on a composite dialogue, including ‘terrorism and counter-narcotics’ as key issues.
    • Pakistan’s reluctance: Pakistan’s reluctance to address India’s concerns on terrorism persisted, as it viewed the calibrated use of terrorist groups as part of its security doctrine.
    • Continued use of terrorism: Despite the efforts of Prime Ministers Vajpayee, Manmohan Singh, and Modi, Pakistan continued using terrorism as a tool against India.

    Challenges with Diplomatic Solutions

    • Public opinion in India: Public opinion in India often favored military action after major terrorist attacks.
    • Post-2008 Mumbai attack: After the 2008 Mumbai terrorist attack, Dr. Manmohan Singh opted for global diplomatic support rather than military action.
    • Post-2001 Parliament attack: After the 2001 Parliament attack, the A.B. Vajpayee government mobilized the armed forces but refrained from war due to assurances from Pakistan’s President Pervez Musharraf.

    Pre-emption and Military Action

    • Post-Pulwama attack in 2019: After the Pulwama attack in 2019, India launched the Balakot aerial strike and announced a doctrine of pre-emption.
    • 2016 surgical strikes: Earlier, limited force was used in surgical strikes following the Uri attack in 2016. However, ambiguity remains regarding the threshold for military action.

    International Recognition and Diplomatic Efforts

    • Major powers’ recognition: Major powers recognize Pakistan’s use of terrorism against its neighbors.
    • Plausible deniability: Despite plausible deniability, Pakistan’s actions are increasingly unsustainable.
    • Evidence linking attacks to Pakistani groups: India has provided evidence linking Pakistani terrorist groups to various attacks, but Pakistan has failed to act.
    • Post-Reasi attack emphasis: After the Reasi attack, External Affairs Minister S. Jaishankar emphasized the need to address cross-border terrorism and its escalation risks between nuclear-armed countries.

    Conclusion

    • Strengthening Intelligence and Border Security: Enhance coordination among intelligence agencies for early detection of threats, and invest in advanced surveillance technologies. Implement stricter border controls using drones, sensors, and biometric systems to prevent terrorist infiltration and smuggling of weapons.
    • International Cooperation and Counter-Radicalization: Collaborate with global allies to share intelligence and counter-terrorism strategies, while engaging in diplomatic efforts to pressure countries harboring terrorists. Develop community outreach programs to counter extremist ideologies and promote education and awareness campaigns that emphasize tolerance and peace.

    https://www.thehindu.com/opinion/lead/reasi-and-the-years-old-issue-of-cross-border-terror/article68341431.ece

  • RBI releases the 29th Financial Stability Report, 2024

    Why in the News?

    The Reserve Bank of India has released the 29th issue of the Financial Stability Report (FSR).

    About Financial Stability Report:

    • The FSR is published biannually by the RBI.
    • It reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC – headed by the Governor of RBI) on risks to financial stability and the resilience of the financial system.
    • The Report also discusses issues relating to the development and regulation of the financial sector.

    Key Highlights of the FSR

    [1] Global Economic Context

    • Heightened Global Risks: The global economy faces significant challenges, such as:
      • Geopolitical Tensions: Conflicts or political disagreements between countries that can affect global stability.
      • Elevated Public Debt: Many countries owe large amounts of money, which can be risky if they struggle to repay it.
      • Slow Progress in Disinflation: Prices of goods and services are not decreasing quickly, which can affect economic stability.
    • Resilience: Despite these challenges, the global financial system (how money moves around the world) remains strong and stable.

    [2] Indian Economy and Financial System

    • Robust and Resilient: India’s economy and financial system are strong and able to handle shocks or problems.
    • Banking Sector Support: Banks and financial institutions (like insurance companies) are in good health and are lending money to support economic activities.

    [3] Financial Metrics for Scheduled Commercial Banks (SCBs)

    • Capital Ratios:
      • Capital to Risk-Weighted Assets Ratio (CRAR): This is a measure of a bank’s financial strength. A CRAR of 16.8% means that for every 100 units of risk, the bank has 16.8 units of capital to cover potential losses.
      • Common Equity Tier 1 (CET1) Ratio: This is a stricter measure of a bank’s core capital. A CET1 ratio of 13.9% means the bank has a strong base of high-quality capital.
    • Asset Quality:
      • Gross Non-Performing Assets (GNPA) Ratio: This measures the percentage of a bank’s loans that are not being repaid. A GNPA ratio of 2.8% means that 2.8% of the total loans are in trouble.
      • Net Non-Performing Assets (NNPA) Ratio: This is similar to GNPA but considers the money the bank has already set aside to cover bad loans. An NNPA ratio of 0.6% means that 0.6% of the total loans, after accounting for provisions, are in trouble.

    [4] Macro Stress Tests for Credit Risk

    • Stress Scenarios and Projections:
      • Baseline Scenario: Under normal conditions, banks are expected to have a CRAR of 16.1% by March 2025.
      • Medium Stress Scenario: Under moderate stress, banks are expected to have a CRAR of 14.4% by March 2025.
      • Severe Stress Scenario: Under severe stress, banks are expected to have a CRAR of 13.0% by March 2025.
    • Interpretation: These tests show how banks might perform under different levels of economic stress. They are hypothetical scenarios to ensure banks are prepared for tough times.

    [5] Health of Non-Banking Financial Companies (NBFCs)

    • CRAR: NBFCs have a CRAR of 26.6%, indicating they are financially strong.
    • GNPA Ratio: NBFCs have a GNPA ratio of 4.0%, meaning 4% of their loans are not being repaid.
    • Return on Assets (RoA): NBFCs have a RoA of 3.3%, indicating they are making good profits from their assets.

    PYQ:

    [2016] With reference to ‘Financial Stability and Development Council’, consider the following statements:

    1. It is an organ of NITI Aayog.

    2. It is headed by the Union Finance Minister.

    3. It monitors macroprudential supervision of the economy.

    Which of the statements given above is/are correct?

    (a) 1 and 2 only

    (b) 3 only

    (c) 2 and 3 only

    (d) 1, 2 and 3

  • UNODC World Drug Report 2024: Key Highlights

    Why in the News?

    • Global drug users reached 292 million in 2022, marking a 20% increase over the past decade. The report was released by the United Nations Office on Drugs and Crime (UNODC).

    About UNODC

    Aspect Details
    Global Role Leader in the fight against illicit drugs and international crime, responsible for implementing the UN’s lead programme on terrorism.
    Headquarters Vienna, Austria.
    Establishment Formed in 1997 through the merger of the United Nations Drug Control Programme and the Centre for International Crime Prevention.
    Functions 1. Educate people about the dangers of drug abuse.

    2. Strengthens international action against illicit drug production and trafficking.

    3. Improves crime prevention and assists with criminal justice reform.

    4. Supports States in ratifying and implementing legal instruments against terrorism.
    Funding Relies mainly on voluntary contributions from governments.
    India and UNODC India works closely with UNODC on multiple fronts, including drug control, crime prevention, and anti-terrorism measures.

     

    Cannabis Use: An Overview  

    According to the WHO, cannabis is a generic term for the various psychoactive preparations of the plant Cannabis sativa. Following are the derived products of Cannabis:

    • THC: The major psychoactive constituent in cannabis is Delta-9 tetrahydrocannabinol (THC).
    • Marijuana (Ganja): The Mexican term is frequently used to refer to cannabis leaves or other crude plant material in many countries.
    • Hashish: Refers to unpollinated female cannabis plants.
    • Cannabis Oil (Hashish Oil): A concentrate of cannabinoids obtained by solvent extraction of the crude plant material or resin.

    International Laws Regulating Cannabis

    • Commission on Narcotic Drugs (CND): The CND founded in 1946, is the UN agency mandated to control substances under global drug control conventions.
    • 1961 Single Convention on Narcotic Drugs: Cannabis has been on Schedule IV, the most dangerous category, since the convention’s inception.
      • Despite being on Schedule IV, many jurisdictions have legalized cannabis for medicinal and recreational use.
      • Over 50 countries now allow medicinal cannabis programs, and recreational use has been legalized in Canada, Uruguay, and 15 US states.

    Indian Context: Narcotic Drugs and Psychotropic Substances Act (NDPS), 1985

    • Illegalization: The Act illegalizes any mixture of charas and ganja, or any drink prepared from them.
    • Legal Exceptions: The law does not ban the use of seeds and leaves of the cannabis plant if these are not mixed with other parts of the plant. For example, bhang, commonly consumed during the Holi festival, and chutney made from cannabis seeds are not illegal.

    PYQ:

    [2019] Consider the following statements:

    1. The United Nations Convention against Corruption (UNCAC) has a ‘Protocol against the Smuggling of Migrants by Land, Sea and Air’.
    2. The UNCAC is the ever-first legally binding global anti-corruption instrument.
    3. A highlight of the United Nations Convention against Transnational Organized Crime (UNTOC) is the inclusion of a specific chapter aimed at returning assets to their rightful owners from whom they had been taken illicitly.
    4. The United Nations Office on Drugs and Crime (UNODC) is mandated by its member States to assist in the implementation of both UNCAC and UNTOC.

    Which of the statements given above are correct?

    (a) 1 and 3 only
    (b) 2, 3 and 4 only
    (c) 2 and 4 only
    (d) 1, 2, 3 and 4

     [2018] India’s proximity to the two of the world’s biggest illicit opium-growing states has enhanced her internal security concerns. Explain the linkages between drug trafficking and other illicit activities such as gunrunning, money laundering and human trafficking. What counter-measures should be taken to prevent the same?

  • Himalayan Serow recorded at Assam’s Raimona National Park

    Why in the News?

    • A mainland serow aka. Himalayan Serow (Capricornis sumatraensis thar) was recorded at 96 metres above mean sea level in Raimona National Park, Assam.
      • This is the lowest elevation recorded for the species beyond Bhutan, its natural habitat.

    About Himalayan Serow

    Details
    About Herbivore species.

    Also known as Thar.

    Resembles a cross between a goat, a donkey, a cow, and a pig.
    Recognition Official state animal of Mizoram.
    Distribution
    • Found at altitudes between 2,000 metres and 4,000 metres (6,500 to 13,000 feet).
    • Found across the India-Bhutan border in Phibsoo Wildlife Sanctuary and Royal Manas National Park.
    • Present in eastern, central, and western Himalayas, but not in the Trans Himalayan region.
    Conservation Status
    • IUCN Red List: Vulnerable
    • CITES: Appendix I
    • The Wildlife Protection Act, 1972: Schedule I

     

    Back2Basics:  Raimona National Park 

    • Raimona National Park is a newly established protected area located in the Bodoland Territorial Region (BTR) of Assam.
    • It was officially declared a national park in June 2021, becoming the sixth national park in the state of Assam.
    • It shares its northern boundary with Bhutan, forming part of the transboundary conservation landscape.
    • It is characterised by dense forests, rivers, and grasslands. The park is part of the greater Manas Biosphere Reserve and serves as an extension of the Manas National Park.
    • The area is interspersed by the Sankosh River which flows through the park.

    Flora and Fauna:

    • Flora: The park boasts a rich biodiversity with various types of vegetation, including semi-evergreen forests, mixed deciduous forests, and patches of grassland.
    • Fauna: Hosts a variety of wildlife, including:
      • Mammals: Asian elephants, tigers, clouded leopards, golden langurs, Indian gaur, and several species of deer.
      • Birds: Home to numerous bird species, including hornbills, great pied hornbills, and various migratory birds.
      • Reptiles and Amphibians: The park also supports a diverse range of reptiles and amphibians, adding to its ecological richness.

     

    PYQ:

    [2011] The Himalayan Range is very rich in species diversity. Which one among the following is the most appropriate reason for this Phenomenon?

    (a) It has a high rainfall that supports luxuriant vegetative growth

    (b) It is a confluence of different bio-geographical zones.

    (c) Exotic and invasive species have not been introduced in this region.

    (d) It has less human interference.

  • Prolonged exposure to coal mining causes respiratory, skin diseases in workers: study  

    Why in the News?

    A new study by the National Foundation of India (NFI) reveals that 75% of focus group participants have chronic respiratory and skin ailments due to prolonged exposure to coal mining pollutants.

    • The study report titled, “At the Crossroads: Marginalised Communities and the Just Transition Dilemma”, is a sequel to the 2021 study by NFI on the socio-economic impact of coal transitions in India.
    Key Highlights of the reports by the National Foundation for India:

      • The study covered two districts each from three central Indian states—Chhattisgarh, Jharkhand, and Odisha surveying 1209 households and conducting 20 Focused Group Discussions (FDGs).
    • Other key findings of the study are: 
      • Health Concerns: Prolonged exposure to coal mining pollutants has resulted in widespread respiratory and skin diseases among the local populations. At least 75% of participants in Focus Group Discussions (FGDs) reported issues such as chronic bronchitis, asthma, and various skin conditions.
      • Economic Impact/ Economic Dependency on Coal: The phasing down of coal is expected to result in significant job losses and economic downturns in coal-dependent regions. This will not only impact the coal miners and workers directly but also the broader local economy.
      • Caste-Based Inequities: Access to resources and opportunities is significantly skewed, with marginalized communities such as Scheduled Castes (SCs), Scheduled Tribes (STs), and Other Backward Classes (OBCs) being disproportionately affected.
    • The report identifies several challenges in achieving a just transition, including the need to upskill a largely under-educated workforce and the lack of alternative livelihoods. 
    • It underscores the importance of community-specific policies, robust institutional mechanisms, and coordinated efforts between government bodies.
    • The study offers a potential framework for safeguarding the interests of these communities through:
      • Alternative Livelihoods: Emphasizing the development of new economic opportunities beyond coal.
      • Ecological Restoration: Promoting environmental recovery to mitigate the health impacts of coal mining.
      • Inclusive Policies: Ensuring that the transition policies are inclusive and consider the needs of marginalized communities.

     

    Present Challenges of Medical Expenses and Shift from Coal:

    • Health Concerns: People living closer to coal mines face higher medical expenses due to increased incidence of lung and breathing-related diseases and skin infections.
    • Economic concerns: The global shift away from coal is expected to result in job losses and economic downturns in coal-dependent regions, affecting both coal miners and the broader local economy.
      • Economic disparities exist with varying income levels and irregular wage receipt patterns in coal-dependent districts.
      • Dhanbad and Koriya, solely reliant on coal production, reported lower incomes compared to diversified industrial districts.

    Way Forward:

    • Diversification of Local Economies: Develop alternative industries and economic activities in coal-dependent regions to reduce reliance on coal mining. Promote skill development programs to help coal workers transition to new employment opportunities in emerging sectors such as renewable energy, manufacturing, and services.
    • Investment in Health Infrastructure: Enhance healthcare facilities in coal mining regions to address the higher incidence of lung, and breathing-related diseases, and skin infections. Implement comprehensive health monitoring and support programs for communities living near coal mines.
    • Promotion of Renewable Energy: Accelerate the shift towards renewable energy sources, building on the recent trend of increased capacity addition in renewable energy. Invest in renewable energy infrastructure and create job opportunities in the renewable sector to offset job losses in coal mining.
    • Government and Policy Support: Implement policies and provide financial support for a ‘just transition’ to ensure that workers and communities dependent on coal mining are not left behind.
    • Community Engagement and Participation: Involve local communities in planning and decision-making processes related to the transition from coal.

    Mains question for practice : 

    Q Analyse the health and socioeconomic impacts of prolonged coal mining in India, as highlighted by the National Foundation for India’s survey. 10M

    Mains PYQ: 

    Q In spite of adverse environmental impact, coal mining is still inevitable for Development”. Discuss. (UPSC IAS/2017)

  • Why India needs to build disaster resilience in its critical infrastructure?

    Why in the News?
    The unprecedented surge in electricity demand offers a glimpse into the kind of stress that critical infrastructure endures during extreme weather events and resulting disasters.

    Present Challenges in India -> High Temperatures and Electricity Demand:

    • Record-breaking Electricity Demand: Delhi experienced record-breaking electricity demand due to persistently high temperatures.
    • Frequent Power Cuts: The high demand led to frequent power cuts in Delhi and neighbouring areas.
    • Worsening Conditions: Other regions in central and eastern India faced similar or worse situations, with high night temperatures exacerbating the situation.
    • Heat-related Deaths: The lack of electricity and high temperatures likely contributed to several heat-related deaths.

    Mounting Losses:

    • Increased Economic Losses: Despite early warnings and quick responses reducing human casualties, economic and other losses from extreme weather events and disasters have been rising due to their increasing frequency and intensity.
    • Government Expenditure: States spent over Rs 1.5 lakh crore between 2018 and 2023 on disaster and natural calamity aftermaths.
    • Long-term Costs: Long-term costs include livelihood losses and reduced agricultural land fertility, which are projected to worsen over time.
    • Job Losses: A 2022 World Bank report projected that heat-related stress could result in a loss of around 34 million jobs in India by 2030.
    • Food Wastage: Food wastage due to non-air-conditioned transportation is estimated at about $9 billion annually.
    • Uncounted Infrastructure Damage: Damage to critical infrastructure like transportation, telecommunications, and power supply is often uncounted in government figures, particularly for privately owned services, causing massive disruptions.

    Incorporating Resilience:

    • Disaster Management Plans: Infrastructure sectors have disaster management plans to prepare and respond to events, such as backup power supplies for hospitals, waterlogging prevention for airports and railways, and underground telecommunication lines.
    • Slow Progress: Despite plans, much of India’s infrastructure remains extremely vulnerable to disasters.
    • Future Infrastructure: India is still developing much of its infrastructure, and it is more cost-effective to incorporate disaster resilience during construction than to retrofit later. Upcoming projects need to be climate-smart, sustainable, energy-efficient, and disaster-resilient.
    A case study of Odisha:

    The Coalition for Disaster Resilient Infrastructure (CDRI) studied Odisha’s electricity transmission and distribution infrastructure, revealing its extreme fragility. Over 30% of distribution substations are within 20 km of the coastline; 80% of electricity poles are susceptible to high wind speeds; over 75% of distribution lines are over 30 years old and not cyclone-resistant.

     

    Note: CDRI’s Created in 2019, CDRI aims to make critical infrastructure resilient to natural disasters. It serves as a knowledge hub and collaborates with over 30 countries, but only a few Indian states have engaged with CDRI.

    Way Forward:

    • Proactive Infrastructure Planning and Investment: Future infrastructure projects in India must integrate disaster resilience at the planning and construction stages. This approach ensures that new developments are sustainable, energy-efficient, and capable of withstanding extreme weather events, reducing the need for costly retrofits later.  
    • Collaboration with Expert Bodies and Adoption of Best Practices: States and infrastructure sectors should actively seek expertise and collaboration from organisations like the Coalition for Disaster Resilient Infrastructure (CDRI).  

    Mains question for practice: 

    Q Discuss the implications of extreme weather events on critical infrastructure in India, citing recent examples. What measures can be taken to enhance the resilience of infrastructure against such events? 15M

    Mains PYQ:

    Q Describe the benefits of deriving electric energy from sunlight in contrast to conventional energy generation. What are the initiatives offered by our government for this purpose? (UPSC IAS/2020)

     

  • [pib] Launching of LSAM 20 (Yard 130)  

    Why in the News?

    The Indian Navy has inducted the ‘Ammunition Cum Torpedo Cum Missile Barge, LSAM 20 (Yard 130) into its fleet.

    What is LSAM 20?

    • LSAM 20 (Yard 130) is the Ammunition Cum Torpedo Cum Missile Barge (Storage) inducted by the Indian Navy.  (built by MSME Shipyard, M/s Suryadipta Projects Pvt Ltd, Thane).
    • LSAM 20 facilitates transportation, embarkation, and disembarkation of articles/ammunition to IN Ships.
    • These Barges are indigenously designed and built under relevant Naval Rules and Regulations of the Indian Register of Shipping.

    Objective 

    • A Torpedo Cum Missile Barge is a specialized vessel used by the Indian Navy to transport various types of ammunition, torpedoes, and missiles to operational areas. 
    • These barges play a crucial role in providing logistical support to naval vessels by ensuring the uninterrupted transportation of essential military supplies. 
    PYQ:

    [2016] Which one of the following is the best description of ‘INS Astradharini’, that was in the news recently?

    (a) Amphibious warfare ship

    (b) Nuclear-powered submarine

    (c) Torpedo launch and recovery vessel

    (d) Nuclear-powered aircraft carrier

    Practice MCQ:

    What is the primary function of LSAM 20 (Yard 130) recently inducted by the Indian Navy?

    a) Transportation of personnel

    b) Transporting ammunition, torpedoes, and missiles

    c) Search and rescue operations

    d) Underwater surveillance

     

  • RBI’s New Guidelines for Asset Reconstruction Companies (ARCs)

    Why in the news?

    The RBI has introduced updated guidelines for Asset Reconstruction Companies (ARCs) through a master direction, effective from April 24, 2024.

    What is an Asset Reconstruction Company (ARC)?

    Description
    About ARC is a special financial institution that acquires debtors from banks at a mutually agreed value and attempts to recover the debts or associated securities.
    Regulation ARCs are registered under the RBI.

    Regulated under the SARFAESI Act, 2002 (Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act).
    Objective ARCs take over a portion of the bank’s non-performing assets (NPAs) and engage in asset reconstruction or securitization, aiming to recover the debts.
    Functions Asset Reconstruction: Acquisition of bank loans or other credit facilities for realization. 

    Securitization: Acquisition of financial assets by issuing security receipts.
    Foreign Investment 100% FDI allowed in ARCs under the automatic route.
    Limitiations ARCs are prohibited from undertaking lending activities. 

    They can only engage in securitization and reconstruction activities.
    Working Bank with NPA agrees to sell it to ARC at a mutually agreed value. 

    ARC transfers assets to trusts under SARFAESI Act. 

    Upfront payment made to bank, rest through Security Receipts. 

    Recovery proceeds shared between ARC and bank.
    Security Receipts Issued to Qualified Institutional Buyers (QIBs) for raising funds to acquire financial assets.
    Significance Banks can clean up their balance sheets and focus on core banking activities. 

    Provides a mechanism for resolution of NPAs and debt recovery.

     

    What are the new guidelines laid out by the RBI?

    • Enhanced Capital Requirements:
        • Minimum Capital Requirement Increase: ARCs are now mandated to maintain a minimum capital requirement of Rs 300 crore, a significant increase from the previous Rs 100 crore stipulation established on October 11, 2022.
        • Transition Period for Compliance: Existing ARCs are granted a transition period to reach the revised Net Owned Fund (NOF) threshold of Rs 300 crore by March 31, 2026.
        • Interim Requirement: However, by March 31, 2024, ARCs must possess a minimum capital of Rs 200 crore to comply with the new directives.
    • Supervisory Actions for Non-Compliance:
        • ARCs failing to meet the prescribed capital thresholds will face supervisory action, potentially including restrictions on undertaking additional business until compliance is achieved.
    • Expanded Role for Well-Capitalized ARCs:
      • Empowerment of Well-Capitalized ARCs: ARCs with a minimum NOF of Rs 1000 crore are empowered to act as resolution applicants in distressed asset scenarios.
      • Investment Opportunities: These ARCs are permitted to deploy funds in government securities, scheduled commercial bank deposits, and institutions like SIDBI and NABARD, subject to RBI specifications. Additionally, they can invest in short-term instruments such as money market mutual funds, certificates of deposit, and corporate bonds commercial papers.
      • Investment Cap: Investments in short-term instruments are capped at 10% of the NOF to mitigate risk exposure.

    PYQ:

    [2018] With reference to the governance of public sector banking in India, consider the following statements:

    1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
    2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.

    Which of the statements given above is/are correct?

    (a) 1 only 

    (b) 2 only 

    (c) Both 1 and 2 

    (d) Neither 1 nor 2

     

  • South India’s First and Largest Leopard Safari at Bannerghatta Biological Park

    Why in the News?

    South India’s first and the country’s largest leopard safari was inaugurated at the Bannerghatta Biological Park (BBP).

    About Bannerghatta Biological Park 

    • BBP is located near Bangalore and was established in 2002.
    • It spans an area of approximately 731.88 hectares, situated within the larger Bannerghatta National Park, which covers around 25,000 acres.
    • The park was created to facilitate the conservation of wildlife, promote tourism, and educate the public about wildlife and conservation efforts.
    • River Suvarnamukhi stream, the main source of water for the animals of the park, runs through the centre of the park.

    Leopards in India

    • The Indian Leopard (Panthera pardus fusca) is a leopard subspecies widely distributed on the Indian subcontinent.
    • These are the smallest of the big cats.
    • They are known for their ability to adapt to a variety of habitats.
    • They are strong and agile predators that can climb trees and drag their prey up for safety.
    • Conservation Status:
    1. IUCN Red List: Vulnerable
    2. CITES: Appendix I
    3. Wildlife (Protection) Act, 1972: Schedule I

    Do you know?

    As per, Status of Leopards in India Report, 2022:

    • India’s leopard population is estimated at 13,874 individuals.
    • Madhya Pradesh houses the largest population of leopards in the country – 3907 (2018: 3421), followed by Maharashtra (2022: 1985; 2018: 1,690), Karnataka (2022: 1,879 ; 2018: 1,783) and Tamil Nadu (2022: 1,070; 2018: 868).

     

    PYQ:

    [2012] Consider the following:

    1. Black-necked crane
    2. Cheetah
    3. Flying squirrel
    4. Snow leopard

    Which of the above are naturally found in India?

    (a) 1, 2 and 3 only
    (b) 1, 3 and 4 only
    (c) 2 and 4 only
    (d) 1, 2, 3 and 4

  • India-Kenya Partnership to Boost Africa’s Space Capabilities

    Why in the News?

    • India has shown interest in partnering with Kenya to develop and expand Africa’s space capabilities for predicting and monitoring extreme weather events.
      • Kenya aims to be an active player in the global space economy, projected to grow significantly by 2035.

    Conference Highlights and Recommendations

    • Conference Conclusion: Calls for more resources for sustainable space activities, including accurate weather and climate event monitoring.
    • Awareness and Innovations: The expo, themed ‘Space technology for societal benefits,’ aimed to raise awareness about space opportunities for societal benefits like climate change mitigation and socio-economic development.
    • Support for Private Sector: Experts recommended that African governments support private sector innovations for data commercialization and explore funding models to de-risk the space sector.
    • STEM Education: Emphasis on boosting national capabilities in space science, breaking entry barriers for women, and promoting STEM education.

    India-Kenya Space Collaboration

    The India-Kenya Space Collaboration particularly aims for:

    • Addressing Food Security: Space technology will be crucial for food security, providing accurate early warning systems for farmers and real-time monitoring for climate change mitigation.
    • Sustainable Development: Space technology integration offers enhanced data for informed decision-making, essential for Kenya’s sustainable development.
    • Regional Collaboration: Kenya is pursuing collaboration on peaceful uses of outer space with African countries such as South Africa, Angola, Rwanda, Uganda, Ethiopia, Sudan, Egypt, Algeria, Nigeria, and Ghana.
    • Capacity Development: Focus on developing indigenous capacity in space systems engineering and utilising space services for socio-economic development through joint projects.

    Kenyan endeavours so far  

    • Earth Observation Centre: Plans to establish a Centre for Earth Observation at the Luigi Broglio Malindi Space Centre.
    • International Training Centre: Partnership with the Italian Space Agency to establish a Training Centre for Space Education, enhancing national and regional capabilities.

    Back2Basics: India-Kenya Relations

    Historical Ties:

    • Early Connections: Trade between India and the Swahili Coast dates back to ancient times, as documented in the ‘Periplus of the Erythraean Sea’ (60 CE).
    • Colonial Era: Both nations share a legacy of struggle against colonialism, with Indian communities actively supporting Kenya’s freedom struggle.

    Diplomatic Relations:

    • Establishment of Diplomatic Presence: India set up the office of Commissioner for British East Africa residents in Nairobi in 1948, and a High Commission was established following Kenya’s independence in 1963. An Assistant High Commission is also located in Mombasa.
    • High-Level Visits: Numerous high-level visits by Indian leaders, including Presidents and Prime Ministers, have strengthened bilateral ties.

    Bilateral Trade:

    • Trade Agreement: The India-Kenya Trade Agreement signed in 1981 granted both nations Most Favoured Nation status.
    • Indian Exports to Kenya: Petroleum products, pharmaceuticals, steel products, machinery, yarn, vehicles, and power transmission equipment.
    • Kenyan Exports to India: Soda ash, vegetables, tea, leather, and metal scrap.
    • Investment: India is the second-largest investor in Kenya, with over 60 major Indian companies operating in sectors like manufacturing, real estate, pharmaceuticals, telecom, IT & ITES, banking, and agro-based industries.

    Development Cooperation:

    • Development Assistance: India provides loans, credit, and developmental support to Kenya, including capacity-building initiatives such as scholarships for Kenyan students.
    • Agricultural Support: India aids in agrarian development by supplying machinery and facilitating technology transfer.
    • Healthcare Contributions: India is a key supplier of pharmaceuticals to Kenya and has supported healthcare initiatives, including donating 1.12 million doses of the Covishield vaccine in 2021.
    • Environmental Conservation: Cheetahs under the reintroduction project are also being brought from Kenya.

    Cultural and Diaspora Links:

    • Indian Community: Indians have a long-standing presence in Kenya, contributing significantly to its society and economy.
    • Official recognition: In 2017, the Kenyan government recognized the Indian descent as the 44th tribe of the country.

    International Cooperation:

    • Common Interests: Both nations share interests in various international forums, including the Commonwealth, Non-Aligned Movement, and Indian Ocean Rim Association (IORA).
    • Regional Engagement: Kenya is an active member of the African Union, with which India has long-standing connections.

     

    PYQ:

    [2015] Increasing interest of India in Africa has its pro and cons. Critically Examine.