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Type: Prelims Only

  • Bloomberg again defers India’s Global Aggregate Bond Index inclusion

    Why in the News?

    Bloomberg Index Services Ltd deferred India’s inclusion in the Bloomberg Global Aggregate Bond Index for the second time, stating that recent market reforms need to be fully reflected in operational practice before inclusion.

    What is the Bloomberg Global Aggregate Bond Index?

    • A global benchmark tracking investment-grade government and corporate bonds.
    • Widely followed by global institutional and passive investors.
    • Inclusion can attract passive foreign capital inflows into a country’s bond market.

    Why was India’s Inclusion Deferred?

    • Recent tax reforms are yet to be fully implemented in market operations.
    • Automated trading systems are not fully operational across investor regions.
    • Foreign investor onboarding and account opening remain cumbersome.
    • Bloomberg seeks evidence of sustained operational efficiency before inclusion.

    Significance

    • Inclusion could attract an estimated $20-30 billion in foreign investment.
    • Expands the investor base for Indian Government Securities (G-Secs).
    • Helps reduce government borrowing costs.
    • Enhances India’s integration with global financial markets.

    Challenges

    • Operational bottlenecks in trading and settlement.
    • Complex onboarding process for foreign investors.
    • Global market uncertainty affecting capital flows.
    • Need for robust market infrastructure despite policy reforms.

    Government Securities (G-Secs)

    • Debt instruments issued by the Government of India to finance fiscal deficits.
    • Considered virtually risk-free as they carry a sovereign guarantee.

    India’s Recent Bond Index Inclusions

    • JPMorgan Government Bond Index Emerging Markets (GBI-EM): June 2024.
    • Bloomberg Emerging Market Local Currency Government Index: January 2025.
    • FTSE Russell Emerging Markets Government Bond Index: September 2025.

    June 2026 Reforms

    • Removal of withholding tax to improve investment attractiveness.
    • Removal of capital gains tax for eligible foreign investors in specified government bonds.

    [2011] Both Foreign Direct Investment (FDI) and Foreign Institutional Investor (FII) are related to investment in a country. Which of the following statements best represents an important difference between the two?

    (a) FII helps bring better management skills and technology, while FDI only brings in capital.

    (b) FII helps in increasing capital availability in general, while FDI only targets specific sectors.

    (c) FDI flows only into the secondary market, while FII targets primary market.

    (d) FII is considered to be more stable than FDI.

  • Central government capex surges 66%, fiscal deficit narrows

    Why in the News?

    The Central Government’s capital expenditure (capex) increased by 66% to ₹89,255 crore in June 2026, while the fiscal deficit narrowed by 46% to ₹1.45 lakh crore, reflecting strong public investment despite revenue pressures.

    Key Highlights

    • Capex: Up 66% YoY to ₹89,255 crore.
    • FY 2026-27 Capex Target: ₹12.22 lakh crore; 28% achieved in the first quarter.
    • Fiscal Deficit: Reduced by 46% in June.
    • Direct Taxes: Corporate tax up 20% and income tax up 7% (Apr-Jun).
    • Customs Duty: Increased 36%, supported by higher duties on gold and silver.

    Why is the Fiscal Position Under Pressure?

    • Urea subsidy increased 68% to ₹53,034 crore.
    • Excise collections declined 22% due to fuel duty cuts.
    • Weak GST growth affected overall revenue.
    • Higher global crude oil prices may increase future expenditure.

    Significance

    • Higher capex boosts infrastructure, employment and long-term economic growth.
    • Lower fiscal deficit improves macroeconomic stability.
    • Strong direct tax collections indicate resilient formal economic activity.

    Challenges

    • Rising subsidy burden.
    • Declining fuel excise revenue.
    • Volatile global oil prices.
    • Sustaining fiscal consolidation while maintaining capital investment.

    Capital Expenditure (Capex)

    • Spending that creates long-term productive assets, such as roads, railways, ports and power infrastructure.
    • Promotes economic growth by increasing productive capacity.

    Revenue Expenditure

    • Spending on salaries, pensions, subsidies, interest payments and day-to-day government operations.
    • Does not create permanent assets.

    Fiscal Deficit

    • Fiscal Deficit = Total Expenditure − (Revenue Receipts + Non-Debt Capital Receipts)
    • Indicates the government’s borrowing requirement during a financial year.
    • Primary Deficit: Fiscal deficit minus interest payments.
    • Revenue Deficit: Revenue expenditure exceeds revenue receipts.

    “[2025] A country’s fiscal deficit stands at ₹50,000 crores. It is receiving ₹10,000 crores through non-debt creating capital receipts. The country’s interest liabilities are ₹1,500 crores. What is the gross primary deficit?

    (a) ₹48,500 crores

    (b) ₹51,500 crores

    (c) ₹58,500 crores

    (d) None of the above.

  • IIP growth conceals consumer demand weakness

    Why in the News?

    India’s Index of Industrial Production (IIP) grew 7.3% (YoY) in June 2026, the fastest growth in nearly two years. However, the strong headline growth was driven mainly by capital and infrastructure goods, while consumer non-durables remained weak, indicating subdued household demand.

    What is IIP?

    • Measures changes in the volume of industrial production.
    • Compiled and released monthly by the National Statistics Office (NSO), Ministry of Statistics and Programme Implementation (MoSPI).
    • Covers three sectors: Manufacturing, Mining, and Electricity
    • Base Year: 2022-23.

    Key Highlights

    • Capital Goods: 13.98% growth, indicating strong investment activity.
    • Infrastructure Goods: 6.74% growth, supported by public infrastructure spending.
    • Consumer Non-Durables: Only 1.53% growth, reflecting weak consumption demand.

    Why is the Headline Misleading?

    • Growth is largely driven by government-led capital expenditure, not broad-based private consumption.
    • Weak consumer demand suggests limited purchasing power despite higher industrial output.
    • Consumer-oriented sectors continue to underperform compared to investment-driven sectors.

    Challenges

    • Weak rural and urban consumption.
    • Rising input costs and inflation affecting demand.
    • Global trade uncertainty impacting consumer industries.
    • Supply disruptions due to geopolitical tensions.

    Significance

    • Used by policymakers, RBI and industry to track business cycles.
    • IIP is a high-frequency indicator of industrial performance.
    • Helps assess economic growth, investment trends and manufacturing activity.

    “[2015] In the ‘Index of Eight Core Industries, which one of the following is given the highest weight?

    (a) Coal Production

    (b) Electricity generation

    (c) Fertilizer production

    (d) Steel production

  • Kudankulam Nuclear Power Plant reactor costs soar 55%

    Why in the News?

    The cost of Units 3 to 6 of the Kudankulam Nuclear Power Plant (KKNPP) has increased by 55%, from ₹89,470 crore to ₹1,38,330 crore, mainly due to disruptions caused by the Russia-Ukraine war. The development comes as India opens its civil nuclear sector to private participation.

    Why has the Cost Increased?

    • War-related disruptions: Higher prices of imported reactor components, logistics and raw materials.
    • Construction delays: Longer project timelines increased financing and interest costs.
    • Capital-intensive nature: Capital cost accounts for nearly 60% of the Levelised Cost of Electricity (LCOE) in nuclear power.
    • Sector-wide trend: Similar cost escalation has been observed at the Rajasthan Atomic Power Project.

    Significance

    • Supports India’s goal of expanding clean, low-carbon electricity.
    • Highlights challenges in attracting private investment into nuclear energy.
    • Cost escalation may increase electricity tariffs and affect project viability.
    • Emphasises the need for resilient nuclear supply chains.

    Challenges

    • High upfront capital investment.
    • Long construction and payback periods.
    • Dependence on imported reactor technology and components.
    • Land acquisition and local opposition.
    • Geopolitical risks affecting global supply chains.

    Kudankulam Nuclear Power Plant (KKNPP)

    • Located in Tirunelveli district, Tamil Nadu.
    • Built with technical collaboration between India and Russia.
    • Uses VVER (Water-Water Energetic Reactor), a type of Pressurised Water Reactor (PWR).
    • Operated by the Nuclear Power Corporation of India Limited (NPCIL).

    Department of Atomic Energy (DAE)

    • Established in 1954.
    • Functions directly under the Prime Minister’s Office.
    • Responsible for nuclear energy policy, research and development.

    Atomic Energy Regulatory Board (AERB)

    • Established in 1983.
    • India’s independent nuclear safety regulator.
    • Regulates radiation safety, nuclear installations and licensing.
    • Does not determine nuclear tariffs or policy.

    India’s Three-Stage Nuclear Power Programme

    1. Stage I: Pressurised Heavy Water Reactors (PHWRs) using natural uranium.
    2. Stage II: Fast Breeder Reactors (FBRs) using plutonium.
    3. Stage III: Thorium-based reactors using U-233, leveraging India’s large thorium reserves.

    India’s Major Nuclear Power Plants

    • Kudankulam (Tamil Nadu), Tarapur (Maharashtra), Kakrapar (Gujarat), Rawatbhata (Rajasthan), Kaiga (Karnataka), Narora (Uttar Pradesh), Kalpakkam (Tamil Nadu), Gorakhpur (Haryana, under construction)

    [2018, GS3, 15.0 marks] With growing energy needs should India keep on expanding its nuclear energy programme? Discuss the facts and fears associated with nuclear energy.
    [2020] In India, why are some nuclear reactors kept under “IAEA safeguards” while others are not ?

    a) Some use uranium and others use thorium
    b) Some use imported uranium and others use domestic supplies
    c) Some are operated by foreign enterprises and others are operated by domestic enterprises
    d) Some are State-owned and others are privately-owned

  • PM Modi inaugurates semiconductor project and other projects in Andhra Pradesh

    Why in the News?

    The Prime Minister inaugurated and laid foundation stones for ₹18,000 crore worth of projects in Andhra Pradesh, including a semiconductor project at Tarluvada (Visakhapatnam), to strengthen India’s semiconductor ecosystem and reduce import dependence.

    Key Components

    • Semiconductor Project (Tarluvada): Boost domestic chip manufacturing and employment.
    • National Highways: Four-lane NH-365BG sections and Tadipatri Bypass (NH-67).
    • Power Transmission: Integrate renewable energy from Kurnool and Ananthapuram into the National Grid.
    • Alluri Sitarama Raju International Airport: Improve connectivity for North Andhra, South Odisha and Chhattisgarh.

    Significance

    • Reduces dependence on imported semiconductors.
    • Diversifies India’s semiconductor ecosystem beyond Gujarat.
    • Supports Make in India, Digital India and electronics manufacturing.
    • Strengthens supply chain resilience and national technological security.
    • Renewable energy integration ensures reliable power for semiconductor fabrication.

    Challenges

    • Very high capital investment.
    • Limited domestic ecosystem for semiconductor equipment, chemicals and skilled manpower.
    • Long gestation period before commercial production.
    • Requirement of uninterrupted power and ultra-pure water.

    Semiconductor Value Chain

    • Chip Design
    • Wafer Fabrication (Fab)
    • Assembly, Packaging and Testing (OSAT/ATMP)
    • Integration into electronic products

    India’s Semiconductor Ecosystem

    • Dholera (Gujarat): India’s first commercial semiconductor fab.
    • Morigaon (Assam): Tata Semiconductor Assembly and Test (TSAT) facility.
    • Sanand (Gujarat): OSAT facility by CG Power-Renesas partnership.
    • Tarluvada (Andhra Pradesh): Expands the semiconductor ecosystem to southern India.
      • Importance of Semiconductors: Smartphones, Artificial Intelligence, Electric Vehicles, Defence systems, Telecommunications (5G/6G), Medical devices, and Consumer electronics

    India Semiconductor Mission (ISM)

    • Launched in 2021 under MeitY.
    • Financial outlay of ₹76,000 crore.
    • Supports: Semiconductor Fabs, Display Fabs, Compound Semiconductor & Silicon Photonics, Sensors, and OSAT/ATMP facilities
    • Objective: Develop an end-to-end semiconductor manufacturing ecosystem in India.

    Note:

    • OSAT: Outsourced Semiconductor Assembly and Test; packages and tests semiconductor chips.
    • ATMP: Assembly, Testing, Marking and Packaging of semiconductor devices.
    • Fab: Manufacturing facility where silicon wafers are processed into integrated circuits.

    [2025, GS3, 15.0 marks] India aims to become a semiconductor manufacturing hub. What are the challenges faced by the semiconductor industry in India? Mention the salient features of the India Semiconductor Mission.”

    [2026] Which one of the following pairs of semiconductor plants in India and their locations is not correctly matched?

    [A] CG Power and Industrial Solutions Pvt. Ltd. in partnership with Renesas Electronics and STARS Microelectronics: Gujarat

    [B] Tata Semiconductor Assembly and Test Pvt. Ltd: Assam

    [C] HCL-Foxconn Joint Venture India Chip Ltd: Madhya Pradesh

    [D] SicSem Pvt. Ltd: Odisha

  • Cabinet approves Samudra Manthan offshore exploration scheme

    Why in the News?

    The Union Cabinet approved the Samudra Manthan Scheme (31 July 2026), a ₹84,084 crore National Offshore Exploration Scheme to boost domestic oil and gas production and reduce India’s growing import dependence.

    Key Components

    • Deepwater Drilling (₹43,200 crore): Support for 60 exploratory wells with funding up to 50% of drilling cost or ₹675 crore per well.
    • Offshore Data Acquisition (₹28,534 crore): Seismic surveys and geological data interpretation.
    • Common Infrastructure (₹10,000 crore): Shared offshore production facilities and pipelines.
    • Manufacturing & Service Zones (₹2,000 crore): Promote indigenous oil and gas equipment manufacturing.

    Objectives

    • Reduce crude oil and gas import dependence.
    • Expand hydrocarbon reserves from 1,600 MTOE to 2,200 MTOE.
    • Increase production from 62 MTOE to 80 MTOE.
    • Strengthen India’s energy security and support Atmanirbhar Bharat.

    Why is it Needed?

    • India imports over 88% of crude oil and about 50% of natural gas.
    • Deepwater exploration is costly and risky, discouraging private investment.
    • Existing oil fields are witnessing declining production.

    Challenges

    • Long gestation period (8 to 10 years).
    • High risk of unsuccessful exploration.
    • High development costs may affect commercial viability.
    • Dependence on foreign deepwater technology.
    • Need to offset declining output from ageing fields.

    Value Addition

    • Major offshore basins: Krishna Godavari, Cauvery, Mahanadi, Mumbai Offshore and Andaman.
    • Deepwater: 400 to 1,500 m water depth.
    • Ultra Deepwater: More than 1,500 m.

    [2025] Consider the following activities:
    I. Production of crude oil
    II. Refining, storage and distribution of petroleum
    III. Marketing and sale of petroleum products
    IV. Production of natural gas
    How many of the above activities are regulated by the Petroleum and Natural Gas Regulatory Board in our country?

    [A] Only one

    [B] Only two

    [C] Only three

    [D] All the four

  • Centre defends CEC panel without CJI

    Why in the News?

    The Supreme Court is examining the constitutional validity of the Chief Election Commissioner and Other Election Commissioners (Appointment, Conditions of Service and Term of Office) Act, 2023, which gives the executive a majority in the CEC selection committee. The Court has reserved its decision on whether to refer the matter to a Constitution Bench.

    What is the CEC Selection Committee under the 2023 Act?

    The Act provides for a three-member selection committee comprising:

    • Prime Minister (Chairperson)
    • Union Cabinet Minister nominated by the Prime Minister
    • Leader of the Opposition (LoP) in the Lok Sabha

    What changed?

    • The Act replaced the Chief Justice of India (CJI) with a Cabinet Minister.
    • This gives the executive two out of three votes, with the Opposition holding one.

    What is the Anoop Baranwal Judgment (2023)?

    • Delivered by a five-judge Constitution Bench.
    • Held that until Parliament enacted a law, the CEC and Election Commissioners should be appointed by a committee comprising:
      • Prime Minister
      • Leader of the Opposition
      • Chief Justice of India
    • The Court stressed that the Election Commission must be independent, neutral, and free from executive control.

    Centre’s Arguments

    • Parliament is competent to decide the appointment process.
    • The Prime Minister’s office carries constitutional trust.
    • Courts should not presume bad faith by constitutional authorities.
    • Replacing the CJI with a Cabinet Minister is within Parliament’s legislative powers.

    Supreme Court’s Concerns

    • The committee lacks a neutral member.
    • A 2:1 executive majority may affect the perception of independence.
    • Appointments should not only be fair but also appear to be fair.

    [2017] Consider the following statements regarding the Election Commission of India:
    1.The ECI is currently a five-member body consisting of the Chief Election Commissioner and four Election Commissioners.
    2.The Union Ministry of Home Affairs is the final authority that decides the election schedule for general elections.
    3.The ECI is the designated authority to resolve disputes relating to splits or mergers of recognized political parties.
    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

  • India’s first private orbital launch marks a structural milestone

    Why in the News?

    Skyroot Aerospace’s Vikram-1 successfully reached orbit on 18 July 2026, becoming the first privately developed Indian rocket to achieve orbital launch. India is now among the few countries where a private company has independently built and launched an orbital rocket.

    What is Vikram-1?

    • Vikram-1 is Skyroot Aerospace’s orbital launch vehicle.
    • Built using carbon composite structures with solid and liquid propulsion stages.
    • Developed by Skyroot Aerospace, a Hyderabad-based startup founded in 2018 by former ISRO scientists.
    • Follows the successful launch of Vikram-S under Mission Prarambh (2022).

    Key Highlights

    • First privately built Indian rocket to reach orbit.
    • Demonstrates India’s growing commercial space capabilities.
    • Marks a major milestone after the 2020 space sector reforms.

    India’s Private Space Ecosystem

    • 285 space startups, with 274 active.
    • 72 startups have received equity funding.
    • Total funding reached $871 million across 241 funding rounds (July 2026).
    • Annual funding increased from $43 million (2021) to $200 million (2025).

    What is IN-SPACe?

    • Indian National Space Promotion and Authorisation Centre (IN-SPACe).
    • Established in 2020 under the Department of Space.
    • Acts as the single-window agency for authorising and promoting private participation in the space sector.
    • Facilitates private access to ISRO’s testing and launch facilities.

    Significance

    • Strengthens India’s commercial space industry.
    • Reduces dependence on government-led launch services.
    • Encourages innovation, investment, and private participation.
    • Enhances India’s competitiveness in the global launch market.

    Challenges

    • High capital requirement for launch vehicle development.
    • Need for a regular commercial launch cadence.
    • Dependence on imported critical components.
    • Evolving insurance and liability framework.
    • Competition from low-cost global launch providers like SpaceX.

    Skyroot Aerospace

    • Headquarters: Hyderabad, Founded: 2018, Founders: Former ISRO scientists
    • First Rocket: Vikram-S (Mission Prarambh, 2022)
    • Naming: Vikram rockets are named after Dr. Vikram Sarabhai.
    • Developed the Dhawan-II, India’s first privately developed 3D-printed cryogenic engine.

    2020 Space Sector Reforms

    • Opened the space sector to private players.
    • Created IN-SPACe.
    • Enabled private firms to build satellites, launch vehicles, and offer launch services.
    • Encouraged technology transfer and infrastructure sharing with ISRO.

    Key Space Institutions

    • ISRO: National space agency.
    • IN-SPACe: Promotes and authorises private participation.
    • NSIL (NewSpace India Limited): Commercial arm of ISRO for technology transfer and commercialisation.

    [2026] Consider the following statements about involvement of private entities in India’s space programme:

    1. IN-SPACe is an autonomous agency formed to facilitate participation of private entities.

    2. Agnikul Cosmos launched the world’s first flight using 3D-printed rocket engine.

    3. Skyroot Aerospace has developed liquid fuel for GSLV.

    (a) 1 only

    (b) 2 and 3 only

    (c) 1 and 2 only

    (d) 1, 2 and 3

  • ISRO and Japanese scientists review mission Chandrayaan 5 preparation

    Why in the News?

    An ISRO–JAXA delegation reviewed preparations for Chandrayaan-5 (LUPEX), India’s joint lunar mission with Japan, targeted for 2028. ISRO also informed Parliament that the Crew and Service Modules for the Gaganyaan-1 uncrewed mission are nearing completion.

    What is Chandrayaan-5 (LUPEX)?

    • Full Name: Lunar Polar Exploration Mission (LUPEX).
    • A joint lunar mission of ISRO and JAXA.
    • Target Launch: 2028.
    • Objective: Explore and study water and water ice at the Moon’s south polar region.

    Mission Components

    • Lander: Developed by ISRO.
    • Rover: Developed by JAXA.
    • Launch Vehicle: Japan’s H3 Rocket.
    • Scientific Payloads:
      • NASA: Neutron Spectrometer.
      • ESA: Mass Spectrometer.
    • Mission Duration: Around 100 days.
    • Scientific Instruments: 7 across the lander and rover.

    Mission Objectives

    • Detect and analyse surface and subsurface water ice.
    • Study the lunar south pole.
    • Support future human lunar exploration and resource utilisation.

    What is the status of Gaganyaan-1?

    • Gaganyaan-1 is an uncrewed precursor mission.
    • Crew and Service Modules are in the final stages of assembly and testing.
    • Intended to validate: Crew Module, Service Module, Crew Escape System, Life Support Systems
    • Launch has been delayed, and a revised schedule is yet to be announced.

    Significance

    • Strengthens India–Japan space cooperation.
    • Demonstrates multi-agency collaboration involving ISRO, JAXA, NASA, and ESA.
    • Advances lunar science and technologies for future exploration.
    • Supports India’s long-term human spaceflight ambitions under Gaganyaan.

    Challenges

    • Budget and resource constraints across multiple space missions.
    • Integration of ISRO’s lander with JAXA’s rover.
    • Dependence on Japan’s H3 launch vehicle.
    • Delays in the Gaganyaan programme.

    Chandrayaan Missions

    • Chandrayaan-1 (2008): Confirmed the presence of water molecules on the Moon.
    • Chandrayaan-2 (2019): Orbiter remains operational; lander hard-landed.
    • Chandrayaan-3 (2023): India became the first country to achieve a soft landing near the lunar south pole.
    • Chandrayaan-4: Planned Indian mission for lunar sample return.
    • Chandrayaan-5 (LUPEX): Joint ISRO–JAXA mission to explore lunar polar water ice.

    Gaganyaan Programme

    • India’s first human spaceflight mission.
    • Objective: Demonstrate the capability to send Indian astronauts to Low Earth Orbit (LEO) and return them safely.
    • Implemented by ISRO.

    ISRO’s Major International Collaborations

    • JAXA: Chandrayaan-5 (LUPEX).
    • NASA: NISAR mission and Chandrayaan payloads.
    • ESA: Scientific payloads and deep-space support.

    [2025] Consider the following space missions:
    I. Axiom-4
    II. SpaDeX
    III. Gaganyaan
    How many of the space missions given above encourage and support microgravity research?

    [A] Only one

    [B] Only two

    [C] All the three

    [D] None

  • RBI tightens transparency norms on bulk deposit rates, allows LCR linked pricing

    Why in the News?

    The RBI has mandated daily disclosure of bulk deposit interest rates while allowing LCR-linked differential pricing. The move follows the MSRDC interest payment controversy, which exposed opaque pricing practices for large depositors.

    What are the new RBI norms?

    • Banks must publish bulk deposit rates daily.
    • Interest rates must be uniform for deposits of the same amount accepted on the same day.
    • Differential rates are allowed only under the Liquidity Coverage Ratio (LCR) framework.
    • Applicable to bulk deposits, wholesale funding, and rupee deposits of non-residents.

    What is the Liquidity Coverage Ratio (LCR)?

    • A Basel III liquidity standard ensuring banks hold sufficient High Quality Liquid Assets (HQLA) to meet 30-day stressed cash outflows.
    • Minimum LCR in India: 100%.
    • Current run-off rate: 12.5% (including 2.5% for digital deposits).

    What triggered the reform?

    • A bank allegedly disguised ₹45 crore paid to MSRDC as marketing expenditure during 2023–25.
    • The irregularity was detected through an internal audit, leading to a vigilance probe and the resignation of the bank’s chairman.

    Key Challenges

    • Hidden arrangements may still require internal audits to detect.
    • Daily disclosures cannot eliminate all off-book incentives.
    • Digital deposits may require periodic revision of run-off rates.
    • Stronger oversight of deposits by government entities is needed.

    Conclusion

    The RBI’s reforms improve transparency and fairness in bulk deposit pricing by replacing opaque negotiations with a rule-based disclosure system, though effective supervision remains critical.

    Value Addition

    • Liquidity Coverage Ratio (LCR) = High Quality Liquid Assets (HQLA) ÷ Net Cash Outflows (30 days) × 100. Minimum requirement: 100%
    • High Quality Liquid Assets (HQLA): Cash, RBI balances, and Government Securities (G-Secs)
    • Basel III: Introduced after the 2008 Global Financial Crisis. Strengthens capital adequacy, liquidity, and bank resilience.
    • Bulk Deposits: Large-value deposits accepted from corporates, institutions, trusts, and government entities, carrying higher liquidity risk than retail deposits.

    [2015] Basel III Accord’ or simply ‘Basel III’ often seen in the news, seeks to

    (a) develop national strategies for the conservation and sustainable use of biological diversity

    (b) improve banking sector’s ability to deal with financial and economic stress and improve risk management

    (c) reduce the greenhouse gas emissions but places a heavier burden on developed countries

    (d) transfer technology from developed countries to poor countries to enable them to replace the use of chlorofluorocarbons in refrigeration with harmless chemicals