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  • RBI issues revised Prompt Corrective Action (PCA) framework

    The RBI has issued a revised Prompt Corrective Action (PCA) framework for banks to enable supervisory intervention at “appropriate time” and also act as a tool for effective market discipline.

    What is the PCA framework?

    • Prompt Corrective Action Framework refers to the central bank’s watchlist of weak banks.
    • The regulator imposes restrictions like curbs on lending on such banks.
    • The PCA Framework applies only to commercial banks and does not cover cooperative banks and non-banking financial companies.

    When was PCA introduced?

    • The RBI’s PCA Framework was introduced in December 2002 as a structured early intervention mechanism along the lines of the US Federal Deposit Insurance Corporation’s PCA framework.
    • The last PCA Framework was issued by the RBI on April 13, 2017, and implemented with respect to banks’ financials as of March 31, 2017.

    Latest PCA norms

    • The revised PCA framework will be effective from January 1, 2022.
    • Capital, asset quality and leverage will be the key areas for monitoring in the revised framework.
    • That apart, RBI has also revised the level of shortfall in total capital adequacy ratio that would push the lender to “risk threshold three” category.

    When exactly does a bank fall into this list?

    • The RBI has specified certain regulatory trigger points with respect to three parameters for the initiation of the process:
    • Capital-to-risk weighted assets ratio (CRAR): It is a measure of a bank’s capital to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements.
    • Net Non-Performing Assets (NPA)
    • Return on assets (RoA): It is an indicator of how well a company utilizes its assets in terms of profitability.

    What are the trigger points on capital and how does a breach invite action?

    1. CRAR

    • If CRAR falls to less than 9 percent, the RBI asks banks to submit a capital restoration plan, restricts new businesses and dividend payments.
    • The RBI also orders recapitalisation, restrictions on borrowings from the inter-bank market, reduction of stake in subsidiaries and reduction of exposure to sensitive sectors.
    • Such sectors include the capital markets, real estate or investments in non-statutory liquidity ratio securities.
    • If CRAR is less than 6 percent but equal to or more than 3 percent, the RBI could take additional steps if the bank fails to submit a recapitalisation plan.

    2. NPA levels

    • If net NPAs rise beyond 10 percent but are less than 15 percent, a special drive to reduce bad loans and contain the generation of fresh NPAs begins.
    • The RBI reviews the bank’s loan policy and takes steps to strengthen credit-appraisal skills.

    3.Return on assets

    • If RoA is less than 0.25 percent, restrictions on accessing/renewing costly deposits and CDs kick in and the RBI bars the bank from entering new lines of business.
    • The bank’s borrowings from the inter-bank market, making dividend payments and increasing staff will be restricted.

    Significance of PCA

    • The financial health of a bank: Essentially PCA helps RBI monitor key performance indicators of banks, and taking corrective measures, to restore the financial health of a bank.
    • Averting a crisis: PCA is intended to help alert the regulator as well as investors and depositors if a bank is heading for trouble. The idea is to head off problems before they attain crisis proportions.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • India launches Infrastructure for the Resilient Island States (IRIS)

    The PM has launched the Initiative for the Resilient Island States (IRIS) for developing infrastructure of small island nations.

    What is IRIS?

    • The Small Island Developing States or SIDS face the biggest threat from climate change.
    • To mitigate this, India’s space agency ISRO will build a special data window for them to provide them timely information about cyclones, coral-reef monitoring, coast-line monitoring etc. through satellite.
    • IRIS will be a part of the India-UK Coalition for Disaster Resilient infrastructure (CDRI).

    About CDRI

    • The CDRI is an international coalition of countries, UN agencies, multilateral development banks, the private sector etc. that aim to promote disaster-resilient infrastructure.
    • Its objective is to promote research and knowledge sharing in the fields of infrastructure risk management, standards, financing, and recovery mechanisms.
    • It was launched by the Indian PM Modi at the 2019 UN Climate Action Summit in September 2019.

    Focus areas

    • CDRI’s initial focus is on developing disaster-resilience in ecological, social, and economic infrastructure.
    • It aims to achieve substantial changes in member countries’ policy frameworks and future infrastructure investments, along with a major decrease in the economic losses suffered due to disasters.

    Try this PYQ:
    Q.Consider the following statements:
    Climate and Clean Air Coalition (CCAC) to Reduce Short Lived Climate Pollutants is a unique initiative of G20 group of countries
    The CCAC focuses on methane, black carbon and hydrofluorocarbons.
    Which of the above statements is/are correct?
    (a) 1 only
    (b) 2 only
    (c) Both 1 and 2
    (d) Neither 1 nor 2

    Post your answers here.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • In news: National Commission for Scheduled Castes (NCSC)

    The National Commission for Scheduled Castes (NCSC) will examine the complaint of a decorated Narcotics Control Bureau (NCB) officer against caste-based allegations by a Maharashtra minister.

    About National Commission for Scheduled Castes

    • NCSC is a constitutional body under Article 338 of the Indian Constitution.
    • It functions under the jurisdiction of Ministry of Social Justice and Empowerment.
    • It was established with a view to provide safeguards against the exploitation of Scheduled Castes.
    • It aims to promote and protect their social, educational, economic and cultural interests, special provisions were made in the Constitution.

    How were they established?

    • The original constitution provided for the appointment of a Special Officer under Article 338.
    • The special officer was designated as the Commissioner for Scheduled Castes and Scheduled Tribes.
    • The 65th Constitutional Amendment Act 1990, amended Article 338 of the Constitution to introduce a joint NC for SCs and STs.
    • Later by 89th Amendment, NC for Scheduled Castes (NCSC) and NC for Scheduled Tribes (NCST) were separated by creating a new Article 338-A.

    Functions

    • To investigate and monitor all matters relating to the safeguards provided for the SCs
    • To inquire into specific complaints with respect to the deprivation of rights and safeguards of the Scheduled Castes
    • To participate and advise on the planning process of socio-economic development of the SCs
    • To evaluate the progress of their development under the Union and any State
    • To present to the President, annually and at such other times as the Commission may deem fit, reports upon the working of those safeguards
    • To make in such reports recommendations as to the measures that should be taken by the Union or any State
    • To discharge such other functions as the President may, subject to the provisions of any law made by Parliament, by rule specify

    Note: National Commission for Backward Castes is also a constitutional body too. According to article 340, President shall establish a commission to examine the condition of social and backward class.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • Giant Magellan Telescope (GMT)

    In Chile’s dry Atacama Desert, stargazers are scanning the clear night skies to detect the existence of life on other planets and study so-called ‘dark energy’. Central to the race to peer into distant worlds is the GMT.

    Giant Magellan Telescope (GMT)

    ⦁ The GMT is a ground-based extremely large telescope under construction.
    ⦁ It is US-led in partnership with Australia, Brazil, and South Korea, with Chile as the host country.
    ⦁ It will consist of seven 8.4 m (27.6 ft) diameter primary segments, that will observe optical and near infrared (320–25000 nm) light.
    ⦁ It will have the resolving power of a 24.5 m (80.4 ft) primary mirror and collecting area equivalent to a 22.0 m (72.2 ft) one which is about 368 square meters.
    ⦁ It is expected to have a resolving power 10 times greater than the Hubble Space Telescope.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)


    Bakc2Basics: Hubble Space Telescope

    ⦁ The Hubble Space Telescope is a space telescope that was launched into low Earth orbit in 1990 and remains in operation.
    ⦁ It was not the first space telescope, but it is one of the largest and most versatile, renowned both as a vital research tool and as a public relations boon for astronomy.
    ⦁ It is said to be the “most significant advance in astronomy since Galileo’s telescope.
    ⦁ It captures images of deep space playing a major role in helping astronomers understand the universe by observing the most distant stars, galaxies and planets.

  • [pib] Manipuri Basanta Raasa

    As part of the celebrations of Azadi Ka Amrit Mahotsav, a celebration of Destination North East India, dance and music of Manipur was organised.

    Manipuri Raas Leela

    • The Raas Leela, also referred to as Manipuri Dance, is one of the major Indian classical dance forms, originating from the state of Manipur.
    • The dance form is based on Hindu Vaishnavism themes, and exquisite performances of love-inspired dance drama of Radha-Krishna called Raas Leela.

    Notable features

    • It is marked by a performance that is graceful, fluid, sinuous with greater emphasis on hand and upper body gestures.
    • It is accompanied with devotional music created with many instruments, with the beat set by cymbals (kartal or manjira) and double-headed drum (pung or Manipuri mrdanga) of sankirtan.
    • The dance drama choreography shares the plays and stories of Vaishnavite Padavalis, that also inspired the major Gaudiya Vaishnava-related performance arts found in Assam and West Bengal.

    Try this PYQ from CSP 2017:
    With reference to Manipuri Sankirtana, consider the following statements:
    It is a song and dance performance.
    Cymbals are the only musical instruments used in the performance.
    It is performed to narrate the life and deeds of Lord Krishna.
    Which of the statements given above is/are correct?
    (a) 1, 2 and 3.
    (b) 1 and 3 only
    (c) 2 and 3 only
    (d) 1 only

    Post your answers here.

    UPSC 2022 countdown has begun! Get your personal guidance plan now! (Click here)

  • 3rd November 2021| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1    Indian culture will cover the salient aspects of art forms, literature and architecture from ancient to modern times.

    GS-2    Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests.

    GS-3    Government Budgeting.

    GS-4    Human Values – Lessons from the Lives and Teachings of Great Leaders, Reformers and Administrators; Role of Family Society and Educational Institutions in Inculcating Values.

    Questions:

    Question 1)

     

    Q.1 Hampi is aptly called ‘the city carved in stone’. Elucidate the architectural and historical significance of this site. (10 Marks)

     

    Question 2)

    Q.2 Strategic partnerships capable of re-shaping the international global order cannot be based simply on a negative agenda. In the context of this, examine the need for a reckoning with how interrelated climate and trade are to securing U.S.-India leadership globally, and how their strategic efforts can flounder without a sincere commitment to a robust bilateral agenda on both fronts. (10 Marks)

    Question 3)

    Q.3 Policy differences between parties and coalitions arouse heated debates. But relatively scant attention is paid to whether the stated policy or enacted law — of any persuasion — delivered the intended outcomes/results. Nowhere is this more obvious than in the annual budget modalities followed by the Union and state governments. In light of this, examine the issues with the budget modalities. (10 Marks)

    Question 4)  

    Q.4 What are the main factors responsible for gender inequality in India? Discuss the contribution of Savitribai Phule in this regard. (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 11th  October is uploaded on 11th October then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 11th October is uploaded on 13th October, then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    For the philosophy of AWE and payment: 

  • Our Best Prelims Program Till Now| Smash Prelims 2022| By Santhosh Sir who scored 145+ twice in Prelims| More than Test-Series

    Our Best Prelims Program Till Now| Smash Prelims 2022| By Santhosh Sir who scored 145+ twice in Prelims| More than Test-Series

    Prelims Super-25 Program is back after a thumping success in Prelims 2021. Out of 25 students Santhosh sir has mentored, 15 have cleared prelims this time.

    Do you want to practice medium to tough test series regularly? Before attending a test do you want to revise the right notes with integrated current affairs? And, after a test do you want an experienced mentor to discuss your answers and motivate you?

    If yes, then this is the right program for you! The registrations are open for all UPSC 2022 aspirants.

    Is Prelims the Toughest Exam of UPSC-CSE?

    Toppers like Pranav Vijayvergiya (AIR 65) and Swati Sharma (AIR 17) have found Prelims to be tougher than Mains. In fact, Pranav failed to clear Prelims thrice. But, in his fourth attempt he had cleared Mains and Interview in one shot!

    What makes prelims tough? It’s because the paper is unpredictable. If this year, science questions are a breeze then the next year you will have to answer advanced concept based questions.

    Unlike Mains, Prelims has negative marking. One has to be good at elimination methods to choose the right option amongst two similar ones.

    Our Super 25 Prelims Program started as a pilot project last year with an aim to introduce step-wise improvement in our chosen 25 aspirants. Over a period of 2 months, Santhosh sir inculcated confidence in aspirants who were either newbies or gave too many attempts.

    This year, we achieved a remarkable 60% success ratio. Next year, we have set our eyes on 100%. Yes, we are ambitious and aspirational just like any other UPSC aspirant.

    How do Students find Santhosh Sir’s Mentorship?

    Santhosh sir has always been more than a guide. He has always walked with aspirants in their UPSC journey than ahead of them. Whenever our students were demotivated, this is how Santhosh sir lifted their spirits —

    Testimonials by students who successfully cleared UPSC 2021 Prelims —

    How is Smash Prelims 2022 structured?

    The program has three pillars and every aspirant who enrolls for Smash 2022 Prelims has access to all of them.

    Pillar-1

    Prelims Tests:

    40 (12 Basic + 6 Advanced + 10 CA tests + 8 Full tests + 4 CSAT)

    Sl No.SUBJECTNO. OF TESTS
    1Polity3
    2Modern History
    3Economy
    4Geography3
    5Environment3
    6Science & Technology1
    7Ancient and Medieval India2
    8Economic Survey1
    9Schemes and India Year Book1
    10Current Affairs10
    11CSAT4
    12Full Length Test8

    Pillar-2

    Value Additions Notes and Classes by Santosh Gupta Sir

    Polity  

    Santhosh Gupta sir will conduct two sessions covering all the Polity Fundamentals, a session analyzing past year papers, another session on important current affairs related to polity this year and will discuss your test solutions.

    History 

    Santhosh Gupta sir will conduct a session on Sectoral Developments in Modern History, a session analyzing past year papers and test discussion.

    Economy

    There will be sessions on economic survey, trend analysis, discussion of most important economic current affairs, past year paper analysis and economy final test discussion.

     Geography

    Santhosh sir will conduct sessions on the most difficult aspects like Geography Mapping, Economic Geography and Indian Agriculture.

    Environment

    Santhosh Gupta sir will cover sessions on Environment innovatively. Key concepts like vegetation and biome, Indian wildlife, conventions and protocols, national parks and sanctuaries, agriculture and sustainable development and environment current affairs will be covered.

    Science & Technology

    This year’s prelims paper questioned on the basic concepts of science. Keeping this in mind, Santhosh Gupta sir will conduct 2 sessions on One basic concepts and current affairs of science and technology.

    Other Value Additions

    1. Decimate Prelims-2022 Content: 2 years of current affairs notes for all topics + Videos

    2. Civilsdaily Current Affairs Magazines for 1 year

    3. Civilsdaily compilations of Yojna, Kurukshetra, PRS and RS TV.

    4. Civilsdaily Budget And Economic Survey Summary.

    Pillar-3

    Santhosh Gupta sir’s mentorship programme will have these special features for aspirants.

    1. Monthly zoom session by Santosh Gupta for doubt clearance and continuous improvement.

    2. 1-1 mentor calls after tests.

    3. Habitat/Whatsapp support from mentors.

    4. Frequent sessions with toppers for support and guidance. 

    If you have any doubts regarding the program, please fill the form for a call back.

    Course Details

    The fees for complete Smash Prelims Program is 20,000+ GST

    Aspirants who don’t want the full program can opt for Smash Prelims-2022: Mini version. This will not have value added notes. Prelims tests + individual mentorship + monthly zoom sessions by Santosh Gupta sir will be available for this plan.

  • [Sansad TV] Climate Change & Public Perception

    • The year 2021 marks a crucial juncture for charting the future of climate action.
    • And for this all eyes are set on two events in particular – the G20 Summit in October end followed by the 26th UN Climate Change Conference or COP26 in November.

    In this article, we will discuss the significance of public perception on the issue of climate change and how will it impact the decision-making process on actions which need to be taken to tackle this challenge.

    About G20

    • Formed in 1999, the G20 is an international forum of the governments and central bank governors from 20 major economies.
    • Collectively, the G20 economies account for around 85 percent of the Gross World Product (GWP), 80 percent of world trade.
    • To tackle the problems or address issues that plague the world, the heads of governments of the G20 nations periodically participate in summits.
    • In addition to it, the group also hosts separate meetings of the finance ministers and foreign ministers.
    • The G20 has no permanent staff of its own and its chairmanship rotates annually between nations divided into regional groupings.
    • India has been a member of the G20 since its inception in 1999.

    Members: The 19 member countries of the forum are Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, United Kingdom, and the United States.

    G20 countries map

    G20 and Climate Change

    • The G20 accounts for over 80% of global GDP, 60% of the world’s population, and more than 75% of global greenhouse gas emissions.
    • In the run-up to the G20 Summit and COP26 the UNDP and the University of Oxford have published the G20 Peoples’ Climate Vote. 

    The G20 Peoples’ Climate Vote

    • The G20 Peoples’ Climate Vote was polled over 689,000 people across 18 of the G20 countries from October 2020 until June 2021.
    • It focussed on various aspects of the issue of climate change including Climate Finance Policy, Cutting emissions and climate adaptation policy.
    • According to this report, on average 70 per cent of young people in G20 countries believe that we are in a global climate emergency.
    • Adults are also not far behind, with 65 percent overall believing the same.

    What defines the public perception of climate change?

    • Climate change perception is a complex process that encompasses a range of psychological constructs such as knowledge, beliefs, attitudes and concerns about if and how the climate is changing.
    • Perception is influenced and shaped, among other things, by the individuals’ characteristics, their experience, the information that they receive, and the cultural and geographic context in which they live.
    • Therefore, measuring climate change perception and trying to find its determinants is not an easy task.
    • The short-term variations in the local weather tend to be more salient than long-term trends and hence can have a key impact on the formation of climate change perceptions.
    • The perceptions of those that directly depend on the weather, such as farmers, tend to be more accurate than that of their counterparts.
    • Life experiences influence perception; individuals who have been directly affected by extreme climatic events tend to report that the probability of such event happening again is relatively high.
    • It is important to make aware specifically those people whose livelihood is threatened due to climate change issue.
    Proportion reporting knowing “something” or “a great deal” about global warming in 2007–08. Darker areas indicate a greater proportion of individuals aware, yellow indicates no data.

    What is the significance of public perception of climate change?

    • It is very important that people are getting aware of climate change and it’s not actually the awareness per se but factually it is about the sufferance of people to make the think about climate change.
    • The new generation and the youth are going to face the consequences of climate change and thus they think that the coming COP26is the opportunity where effective and speedy action will result.
    • It forces world leader to take immediate and effective action and should contain the global warming which has the wide ranging consequences.
    • It also impacts what people do at an individual level to contain the global warming.
    • It needs to take some tougher decisions by leaders and the public perceptions shows how much appetite people have to accept such decision.

    What are the expected tangible achievements of the COP26 in terms of public perception of climate change?

    • Climate change is the global issue and need commitment of all the leaders to do justice in terms of responding to the menace of climate change.
    • COVID-19 has refocused priorities and caused individuals and governments alike to pay closer attention to the environment. As many countries look to rebuild their economies in the wake of the pandemic, there has been a major emphasis on ‘building back better’ through a green recovery.
    • COP26 is being viewed as the successor to COP21 where the Paris Accord was signed, arguably the greatest success from the UNFCCC in recent years.
    • COP26 is seen as the summit to both address what has and hasn’t been achieved since 2015, while also setting concrete plans to reach the Paris Agreement targets.
    • The UN Environment Programme has warned that climate commitments are already falling far short of what is needed to meet these goals – but there is hope from net-zero pledges. This should be a “thundering wakeup call” for leaders ahead of the summit.
    • So it’s expected from countries around the globe to put forward ambitions in terms of GHGs reduction, net zero commitments, etc. As the window is very short, it is the high time that countries take harsh decisions.
    • The transition from carbon economy to carbon-less economy requires capital which many developing countries are lacking. Thus the carbon justice has to be brought.
    • This requires the developed countries to raise $100 billion which was supposed to be done by 2020 but is still not done.
    • The carbon neutrality or net zero is important but what is more important than this is deep cuts which are required first and the necessary financing required to install alternative energy sources which are renewable.

    Conclusion

    We are running short of time and the issue of climate change is a very serious problem and everyone across the globe has to work together for this and it is very important to see the summits like COP26 takes the harsh decisions required for containing the global warming and resolving financing issue as soon as possible. Public perception plays a major role in motivating global leaders to work towards a sustainable and climate risk-free global world.

  • (Imp) Cover Anthropology Optional with an IAS, Rinku Lather (Anthropology topper, AIR 259, UPSC 2020)| Live video lectures & 1-1 mentorship

    This is for students preparing for UPSC Mains with Anthropology optional.

    Unlike popular opinion, scoring marks in Anthropology is not that easy anymore. Many aspirants still are confused about the right strategy to prepare for anthropology optional. It is not just studying but studying in the right direction. Writing answers that fetch you marks.

    Rinku Lather sir has launched his exclusive Anthropology club wherein he will be guiding you on a 1-to-1, personal level. He will be sharing tips and his process that helped him to score consistently high marks in Anthropology optional.

    https://youtu.be/oc7aLdeao6o

    About the Anthropology Marks Enhancer by Rinku Lather, IAS

    • Anthropology topic-wise discussion to improve score.
    • Google meet classes with Anthropology rank holder and UPSC Topper.
    • One-on-one discussions every week.
    • Doubt clearing sessions
    • Important notes, reference material, etc. will be suggested by Rinku sir
    • Mentorship to guide you in understanding the demand of the question, structuring of answers and content enrichment.

    Program Inclusion

    • Exclusive membership to Habitat club- Only for Mains written aspirants
    • Personalised guidance for marks enhancement
    • Google meet session
    • 22 classes on Google meet – topicwise discussion
    • Answer writing and enhancement tips
    • Habitat discussion and doubt sessions
    • On call*, One to one mentorship by Rinku sir

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