💥UPSC 2027,2028 Mentorship (April Batch) + Access XFactor Notes & Microthemes PDF

Type: Prelims Only

  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Large Ozone Hole detected over Antarctica

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Ozone Hole

    Mains level: Not Much

    ozone

    Central Idea

    • Satellite measurements conducted over Antarctica have unveiled a gigantic hole in the ozone layer.
    • Termed an “ozone-depleted area,” this region spans 26 million square kilometers (10 million square miles), approximately three times the size of Brazil.

    Ozone Layer and Ozone Hole

    Location Stratosphere, approximately 10-30 km above Earth’s surface.
    Composition Composed of ozone (O3) molecules.

    Unit of measurement: Dobsob Unit (DU)

    Function Acts as a protective shield, absorbing and blocking a significant portion of harmful ultraviolet (UV) radiation from the sun.
    Importance Essential for protecting life on Earth by preventing excessive UV radiation, which can harm living organisms and the environment.
    Ozone-depleting Substances Threatened by ODS like chlorofluorocarbons (CFCs), halons, and other synthetic compounds commonly used in refrigeration, air conditioning, and aerosol propellants.
    Montreal Protocol An international treaty adopted in 1987 to phase out the production and consumption of ODS, resulting in significant recovery of the ozone layer.
    Current Status The ozone layer is in the process of recovery due to the success of the Montreal Protocol.
    Environmental Impact Protects ecosystems, prevents skin cancer, cataracts, and other health issues in humans.
    Additional Facts • The size of the ozone hole over Antarctica varies annually, opening in August and closing in November or December.

    • Special winds caused by the Earth’s rotation create a unique climate over Antarctica, preventing mixing with surrounding air.

    • When these winds subside, the hole closes.

    Potential Causes of the Giant Ozone Hole

    • Volcanic Eruption in Tonga: Scientists speculate that the extensive ozone hole this year may be linked to volcanic eruptions in Hunga Tonga, Tonga, between December 2022 and January 2023. These eruptions released water vapor and other elements into the stratosphere, impacting the ozone layer through chemical reactions.
    • Human-Induced Ozone Holes: In the 1970s, scientists discovered that human activities, primarily the use of chlorofluorocarbons (CFCs), led to significant ozone depletion. These chemicals released chlorine in the stratosphere, depleting the ozone layer.
    • Effective Mitigation: The Montreal Protocol, established in 1987, aimed to combat ozone depletion by phasing out ozone-depleting substances. This international agreement successfully reduced the size of ozone holes over the years.

    Ozone Depletion and Climate Change

    • Not a Primary Climate Change Cause: Ozone depletion is not a leading contributor to global climate change.
    • Impact of Rising Temperatures: However, rising global temperatures may influence ozone holes. Extreme fires, such as those in southeastern Australia in 2020 and 2021, injected smoke into the stratosphere, potentially contributing to ozone depletion.
    • Changing Seasons: Ozone holes can alter the progression of seasons, as they extend the duration of polar vortexes, thereby extending winter periods.
  • GI(Geographical Indicator) Tags

    Recent GI tags awarded

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: GI tags mentioned

    Mains level: NA

    Central Idea

    • Many GI tags were awarded in this month. Let’s take a look:

    GI Tags in News:

    [1] Jaderi Namakatti

    Jaderi Namakatti gi tag

    • Jaderi namakatti are clay sticks that are white in colour, usually available in finger-like shape with a smooth texture.
    • They are used to adorn the foreheads of idols, men and temple elephants.
    • Jaderi is a small village in Tiruvannamalai district of Tamil Nadu.
    • There are around 120 families in Cheyyar taluk whose primary occupation has been making namakatti for more than hundreds of years now.

    [2] Basohli Pashmina

    Basohli Pashmina gi tag

    • Basohli Pashmina is a very old craft from the Kathua district of Jammu and Kashmir. It’s famous because it’s super soft, very fine, and feels incredibly light.
    • Pashmina is a type of material that is hand-spun and known for being incredibly soft, fine, lightweight, and also warm.
    • You can make various things from Pashmina, like shawls for men and women, mufflers, blankets, and even baskets.
    • It comes from a type of mountain goat called Capra hircus. These goats are found on the Changthang Plateau in Tibet and parts of Ladakh.
    • In Ladakh, there are people called the Changpa, who are known for making Pashmina wool. They live on the Changthang plateau in Tibet and are nomadic, which means they move around a lot.

    [3] Marcha Rice

    • Grown in select pockets of six blocks in West Champaran district, Bihar, India. These blocks include Mainatar, Gaunaha, Narkatiaganj, Ramnagar, Lauriya, and Chanpatia.
    • It has received a Geographical Indication (GI) tag, indicating its unique qualities associated with the region where it’s grown.
    • Cultivated by the Marcha Dhan Utpadak Pragatisheel Samuh, a registered organization of paddy cultivators in West Champaran district.
    • Known for its distinct aroma and taste, Marcha Rice is a special indigenous variety of paddy.

    [4] Atreyapuram Pootharekulu

    Atreyapuram Pootharekulu gi tag

    • Atreyapuram Pootharekulu is a traditional sweet originating from Atreyapuram village, situated on the banks of the Godavari River in the Konaseema district of Andhra Pradesh.
    • The name ‘Pootharekulu’ translates to ‘coated sheets,’ although this description may appear somewhat vague.
    • This traditional sweet is known for its extraordinary delicacy and distinct taste.
    • It is created by layering paper-thin sheets of rice flour, which are delicately coated with ghee (clarified butter) and then folded to encase powdered jaggery or sugar dust.
    • Additionally, some variants of Pootharekulu may include finely chopped roasted dry fruits such as pistachios, almonds, and cashews.
    • The preparation of relies on a specific type of rice known as MTU-3626, referred to locally as Bondalu.
    • This rice variety is chosen for its unique taste and its ability to yield a sticky consistency, which is crucial for crafting this sweet.

    Back2Basics: GI Tag

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years.
  • GI(Geographical Indicator) Tags

    Goa’s Cashew Industry receives GI Tag

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Goa's Cashew

    Mains level: Not Much

    cashew

    Central Idea

    • The recent awarding of a Geographical Indication (GI) tag to Goa’s cashew industry has ignited hope and enthusiasm among cashew manufacturers and processors in the state.

    Goa’s Cashew Industry

    • Introduction of Cashew in Goa: Cashew was introduced to Goa in the 16th century by Portuguese colonizers. Initially, it was primarily cultivated for afforestation and soil conservation purposes.
    • Discovery of Edible Value: The true economic value of cashew nuts was discovered during Goa’s freedom movement in the mid-18th century. Goan prisoners exiled to Portuguese territory in Africa (Mozambique) recognized the edible potential of cashew nuts.
    • Growth of Cashew Industry: Cashew production evolved from a cottage industry to a large-scale enterprise, driven by demand, particularly in the USA. The first cashew factory in Goa began operations in 1926, and the first consignment of cashew kernels was exported in 1930.
    • Foreign Trade Contribution: By 1961, the cashew processing industry accounted for about 60% of industrial production in Goa. Cashew nuts, both locally grown and imported, were processed and exported to countries like the United States of America, Japan, Saudi Arabia, and West Germany.

    Understanding the GI Tag

    • A GI is a sign used on products that have a specific geographical origin and possess qualities or a reputation that are due to that origin.
    • Nodal Agency: Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry
    • India, as a member of the World Trade Organization (WTO), enacted the Geographical Indications of Goods (Registration and Protection) Act, 1999 w.e.f. September 2003.
    • GIs have been defined under Article 22 (1) of the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement.
    • The tag stands valid for 10 years.
  • The Crisis In The Middle East

    India’s Evolving Diplomatic Stance on Palestine

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: India-Palestine Relations

    palestine

    Central Idea

    • India’s diplomatic position on the Israel-Palestine conflict has witnessed significant shifts over the years.
    • While PM recent expression of solidarity with Israel during a period of heightened conflict has sparked debate, it is essential to contextualize these developments in India’s historical foreign policy.
    • This article delves into India’s stance on the Israel-Palestine issue, the factors shaping its policies, and the implications of its evolving approach.

    Historical Background

    • India’s Early Stance: India’s initial position on the Israel-Palestine issue was shaped by leaders like Jawaharlal Nehru and Mahatma Gandhi. In 1947, India voted against UN Resolution 181, advocating for the partition of Mandatory Palestine. Nehru favored a federal state with wide autonomy for Arabs and Jews, influenced by Gandhi’s opposition to a Jewish state.
    • Recognition of Israel: Despite recognizing Israel in 1950, India did not establish diplomatic relations until 1992. Factors such as a sizable Muslim population, Cold War dynamics, and the need to maintain Arab support influenced this delayed recognition.

    Impact of Establishing Diplomatic Relations

    • End of Cold War: India’s decision to establish diplomatic ties with Israel in 1992 marked a shift after the end of the Cold War. The government of P.V. Narasimha Rao took this bold step, focusing on national interests and strengthening economic relations, particularly in defense.
    • Ongoing Support for Palestine: India’s recognition of Israel did not signal abandonment of its principled support for Palestine. India continued to voice support for the Palestinian cause while developing closer ties with Israel.

    Contemporary Developments

    • India-Israel Relations: Presently, India enjoys a strong and multifaceted relationship with Israel. Prime Ministers Modi and Netanyahu have cultivated personal rapport, and both countries collaborate closely, especially in the defense sector.
    • Change in Rhetoric: India has adopted a more measured approach in its rhetoric regarding the Israel-Palestine conflict, especially in international forums like the United Nations. Some argue that India’s pro-Palestine stance has not yielded commensurate benefits in terms of national interest.
    • Ideological Shift: India’s support for Israel’s response to attacks from Gaza is sometimes misinterpreted as anti-Islamic action. Israel’s approach to cross-border terrorism resonates with some in India, although the situations differ significantly.

    India’s Formal Position

    • Support for Two-State Solution: India officially supports the two-state solution, envisioning Israel and Palestine as peaceful neighbours coexisting harmoniously.
    • Official visits: PM Modi’s visit to Ramallah in 2018 underscored India’s commitment to this position.
    • Public perception: A large section of Indian society is supportive of the Palestinian cause due to religious affinities.

    Potential Implications of Current Escalation

    • Palestinian Reaction: While the Palestinians may express dissatisfaction with India’s growing proximity to Israel, it is unlikely to result in significant backlash. Popular sentiment may revive support for the Palestinian cause.
    • Arab World’s Perspective: Arab countries, including Saudi Arabia, have shifted their focus from the Palestinian issue. They are increasingly open to normalizing relations with Israel. India’s stance is unlikely to disrupt its relationships with these nations.

    Conclusion

    • India’s evolving stance on the Israel-Palestine issue reflects its pragmatic approach to foreign policy.
    • While it maintains support for Palestine, India has strategically developed robust relations with Israel, grounded in national interests.
    • The recent expression of solidarity with Israel amid conflict highlights the complexities of India’s diplomatic balancing act in the region.
  • Capital Markets: Challenges and Developments

    Finfluencers: What You Need to Know

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Finfluencers

    Mains level: Capital markets manipulation issue

    Finfluencers

    Central Idea

    • A recent front-page advertisement in a business daily, featuring a financial influencer (finfluencer), YouTube’s logo, and the IT Ministry’s logo, has stirred controversy and raised concerns about the role of finfluencers and their impact.

    Understanding Finfluencers

    • Finfluencers are individuals with a significant presence on social media platforms who offer financial advice, share personal experiences related to money management, and discuss various investment topics.
    • Their general discussion includes stocks, budgeting, property, cryptocurrency, and financial trends.
    • Finfluencers often have a large following, and their advice and recommendations can influence the financial decisions of their audience.
    • However, concerns arise regarding their qualifications and the potential risks associated with their recommendations.

    Why discuss them?

    • The advertisement in question featured a popular finfluencer, alongside the tagline, “Trust only the real experts,” and logos of YouTube and the IT Ministry.
    • It directed viewers to a YouTube playlist on online safety and content verification.
    • The advertisement generated criticism due to the perceived endorsement of expertise by finfluencers or a specific social media platform.
    • Given ongoing regulatory scrutiny of finfluencers, this raised concerns about the message being conveyed.

    Regulatory Context

    • The Securities and Exchange Board of India (SEBI), the country’s markets regulator, has been examining the activities of finfluencers.
    • Investors have expressed concerns about unsolicited stock tips and investment advice provided by finfluencers without proper registration as investment advisers.
    • Many finfluencers lack clear educational or professional qualifications in finance, raising questions about their competence to provide financial advice.
    • The absence of transparency regarding financial relationships between finfluencers and promoted entities is also concerning.

    Government’s Response

    • The MEITY clarified that the advertisement did not endorse any individual or platform.
    • He emphasized the need for private platforms to exercise caution when using government logos in advocacy ads to avoid misinterpretation.

    Broader Industry Concerns

    • ASCI’s Guidelines violated: The Advertising Standards Council of India (ASCI) has issued guidelines for social media influencers and advertisers regarding virtual digital assets (VDAs), including cryptocurrencies and non-fungible tokens (NFTs).
    • Non-Compliance: ASCI’s recent half-yearly report highlighted cases of non-compliance by social media influencers with advertising guidelines.
    • Celebrity endorsements: A prominent Bollywood actor was among those found in violation, particularly in advertisements related to financial instruments and cryptocurrencies.

    Conclusion

    • The controversial advertisement featuring a finfluencer has ignited a debate about the role and responsibilities of financial influencers in India.
    • Regulatory authorities are increasingly focusing on the activities of finfluencers, and the industry is grappling with questions of transparency, qualifications, and investor protection.
    • The ongoing scrutiny reflects the evolving landscape of financial advice and investment in the digital age.
  • The Crisis In The Middle East

    Operation Ajay to evacuate Indian nationals from Israel

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Operation Ajay

    Mains level: Not Much

    Central Idea

    • India has initiated Operation Ajay to evacuate its citizens who wish to return from conflict-ridden Israel.
    • External Affairs Minister S. Jaishankar announced this operation, emphasizing the safety and well-being of Indian nationals abroad.

    Operation Ajay

    • Evacuation Plan: Special chartered flights and other arrangements are being organized for the return of Indian citizens from Israel.
    • Second Evacuation: This marks the second evacuation operation this year, following Operation Kaveri, which brought back several thousand Indian citizens from strife-torn Sudan in April-May.

    Significance: Indian Jewish Community

    • The Indian Jewish community, with an ancestry spanning over 2000 years in India, has a unique history.
    • India has been a welcoming home to them, where they thrived without encountering anti-Semitism, making it a distinct place on the global map.
    • However, the landscape changed with the independence of India in 1947 and the establishment of the state of Israel in 1948.
    • This transformation marked the beginning of a new chapter in India-Israel relations, leading to the migration of Indian Jews to their religious homeland.

    Diverse Indian Jewish Groups

    Indian Jews can be categorized into four main sects, each with its own historical origins and cultural traditions:

    1. Cochin Jews: Tracing their arrival to India back to 50 CE, they primarily settled in the southern region.
    2. Bene Israel: The largest group among Indian Jews, they settled in and around Maharashtra and Konkan.
    3. Baghdadi Jews: This group, part of the most recent wave of Jewish migration, established communities in port cities like Calcutta, Bombay, and Rangoon.
    4. Bnei Menashe: Settled in the North East, they are another significant segment of Indian Jews.

    Complex Reception in Israel

    The migration of Indian Jews to Israel was not without challenges. Israeli society struggled to embrace them due to several factors:

    • Internal Divisions: The four Indian Jewish groups had substantial differences and disagreements among themselves. These internal divisions, combined with bias from Jews of European origin, complicated the reception of Indian Jews, especially in the initial years of migration.
    • Discrimination: The Bene Israel, primarily from Maharashtra, faced significant discrimination upon their arrival in Israel. Reports in the 1950s highlighted instances of racism and unequal treatment, including job and housing discrimination.
    • Differing Motivations: Indian Jews’ motivations for migrating varied. While the Cochin Jews were seen as driven by religious reasons, the Bene Israel were often perceived as seeking better economic prospects, leading to different treatment based on perceived motives.
    • Economic Disparities: The economic differences among the four groups fueled animosity. Some attributed the Cochin Jews’ messianic aspirations to poverty, while the Baghdadi Jews considered the Bene Israel as lacking proper religious traditions.
  • Coal and Mining Sector

    New Royalty Rates for Strategic Minerals, Lithium and REEs

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Critical Minerals

    Mains level: Read the attached story

    minerals

    Central Idea

    • The Centre has approved royalty rates of 3% each for lithium and niobium and 1% for Rare Earth Elements (REEs).
    • These changes enable competitive royalty rates for these strategically vital minerals (critical minerals) and open the doors to private sector participation through concession auctions.

    What are Critical Minerals?

    • Critical minerals are elements that are crucial to modern-day technologies and are at risk of supply chain disruptions.
    • These minerals are used in making mobile phones, computers, batteries, electric vehicles, and green technologies like solar panels and wind turbines.
    • Minerals such as antimony, cobalt, gallium, graphite, lithium, nickel, niobium, and strontium are among the 22 assessed to be critical for India.
    • Many of these are required to meet the manufacturing needs of green technologies, high-tech equipment, aviation, and national defence.

    Implications of the Amendment

    • Alignment with Global Benchmarks: The amendments, involving specifying new royalty rates, bring India’s royalty rates in line with global standards. This is crucial to attract bidders’ in future mineral auctions.
    • Competitive Royalty Rates: The Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957, previously set a 12% royalty rate for unspecified minerals, which was significantly higher than international benchmarks. The revised rates are 3% for lithium and niobium, and 1% for REEs, based on price benchmarks, enhancing the attractiveness of mining in India.
    • Domestic Mining Promotion: Lower royalty rates and commercial exploitation opportunities aim to encourage domestic mining, reduce imports, and stimulate related industries like electric vehicles (EVs) and energy storage solutions.
    • Energy Transition Commitment: Access to critical minerals is integral to India’s commitment to energy transition and achieving net-zero emissions by 2070, aligning with global environmental goals.

    Economic significance of the move

    (A) Lithium

    • Import Dependence: India currently imports all its required lithium. The government’s push for lithium mining extends beyond Jammu & Kashmir to explore lithium extraction from Rajasthan and Gujarat’s brine pools, as well as Odisha and Chhattisgarh’s mica belts.
    • Economic Offensive: This initiative is part of India’s economic strategy to reduce dependency on China for lithium-ion energy storage products, given China’s dominant position in the market.
    • EV Growth: With EVs on the cusp of disruption, securing a lithium supply chain is strategically vital. The global lithium battery market has seen significant growth in recent years.

    (B) Rare Earth Elements

    • Global Supply Challenges: Rare earth elements, primarily sourced from or processed in China, pose challenges in the EV supply chain. Securing supplies can be difficult, and China’s dominance has raised concerns.
    • Usage in Motors: Rare earth elements are crucial in EV motors, particularly permanent magnet motors. Elements like neodymium, terbium, and dysprosium are used in magnets for generating a constant motor flux, enhancing motor efficiency.
    • Environmental Concerns: Mining rare earth elements often involves environmentally damaging open-pit operations, raising environmental and ecological concerns.

    (C) Niobium for Industry

    • Corrosion Resistance: Niobium, known for its resistance to corrosion due to a surface oxide layer, is used in various industries. It strengthens alloys, particularly stainless steel, making them ideal for applications in aerospace, construction, and pipelines.
    • Superconducting Properties: Niobium’s superconducting properties find applications in magnets for particle accelerators and MRI scanners.
    • Global Sources: The main source of niobium is the mineral columbite, found in several countries, including Canada, Brazil, Australia, and Nigeria.

    Conclusion

    • India’s decision to amend mining laws for strategic minerals is a significant step toward aligning with global standards, promoting domestic mining, and securing supplies for emerging industries like EVs and energy storage.
    • It underscores India’s commitment to sustainable energy transition and reduced import dependency while addressing environmental concerns in mining rare earth elements.
  • The Crisis In The Middle East

    Gandhi’s Stance on Israel and Palestine: A Closer Look

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: NA

    Mains level: Israel-Palestine Issue

    gandhi israel

    Central Idea

    • Mahatma Gandhi’s perspective on the Israel-Palestine issue has been a topic of extensive debate over the years.
    • His article, ‘The Jews,’ written in 1938, offers insights into his complex views on the matter.
    • Gandhi’s sentiments regarding the Jewish people, the Holocaust, and the creation of a Zionist state in Palestine are subjects of scrutiny and admiration, shedding light on his unwavering commitment to non-violence.

    Gandhi’s Sympathy for the Jewish People

    • Historical Persecution: Gandhi expressed deep sympathy for the Jewish people who had endured historical persecution due to their religion. He likened their mistreatment by Christians to the plight of untouchables in Hinduism.
    • German Persecution: Gandhi went further, describing the German persecution of Jews as unparalleled in history. He voiced concern over Britain’s appeasement policy toward Adolf Hitler and asserted that a war against Germany, if necessary to prevent Jewish persecution, would be justifiable in the name of humanity.

    Opposition to a Zionist State in Palestine

    • Violence and Settlement: Gandhi firmly opposed the imposition of Jews on Arabs in Palestine, condemning it as inhumane. He believed that the settlement of Jews, facilitated by Britain, was inherently violent and could not be achieved through force.
    • Need for Arab Goodwill: Gandhi insisted that Jews could only settle in Palestine with the goodwill of the Arab population, without the assistance of British military force.
    • Antithetical to Jewish Rights: He argued that the idea of a Jewish homeland in Palestine contradicted the Jews’ struggle for rights in other parts of the world. Gandhi questioned whether Jews, who had settled globally, would appreciate being compelled to leave other regions for a singular homeland.

    Influence on India’s Foreign Policy

    • Wider Anti-Imperialist Sentiment: Gandhi’s stance on Palestine resonated with leaders across the Arab world and anti-imperialist movements globally. The Balfour Declaration of 1917, promising Jews a homeland in the British Mandate of Palestine, drew criticism.
    • Impact on Nehru: Jawaharlal Nehru, India’s first Prime Minister, was profoundly influenced by Gandhi’s views. Gandhi’s anti-imperialism and his perspective on the Israel-Palestine issue shaped India’s foreign policy for decades.
    • UN Resolution and Recognition: India voted against UN Resolution 181, which proposed the partition of Palestine between Jews and Arabs. Although India recognized the state of Israel in 1950, it was not until 1992, under Prime Minister P. V. Narasimha Rao, that official diplomatic relations were established.

    Conclusion

    • Mahatma Gandhi’s complex and empathetic stance on the Israel-Palestine issue reflects his unwavering commitment to non-violence and his deep sympathy for the Jewish people.
    • His opinions on the matter, rooted in anti-imperialism and a profound sense of humanity, played a pivotal role in shaping India’s foreign policy and continue to be subjects of historical significance and debate.
  • NPA Crisis

    PCA Framework extended to government NBFCs

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Prompt Corrective Action (PCA)

    Mains level: Read the attached story

    PCA Framework

    Central Idea

    • The RBI has announced the extension of the Prompt Corrective Action (PCA) framework to Government Non-Banking Financial Companies (NBFCs), excluding those in the Base Layer, starting from October 1, 2024.

    PCA Framework Expansion

    • Scope: Government-owned NBFCs, such as PFC, REC, IRFC, and IFCI, will now fall under the PCA framework.
    • Impact: These NBFCs will face restrictions on dividend distribution and profit remittances. Promoters and shareholders will have limitations on equity infusion, and leverage reduction will be required. Issuing guarantees or taking contingent liabilities on behalf of group companies will also be restricted.

    What is Prompt Corrective Action (PCA) Framework?

    • Definition: The PCA Framework is a watchlist of banks identified as financially weak by the central bank.
    • Regulatory Measures: When a bank falls under PCA, the regulator imposes restrictions on its operations, such as curbs on lending activities.
    • Coverage: The PCA Framework applies exclusively to commercial banks and does not extend to cooperative banks or non-banking financial companies (NBFCs).
    • History: The RBI introduced the PCA Framework in December 2002 as an early intervention mechanism, inspired by the US Federal Deposit Insurance Corporation’s PCA framework.
    • Last Update:  The revised PCA framework came into effect on January 1, 2022.
    • Monitoring Areas: The revised framework places a heightened focus on capital adequacy, asset quality, and leverage.
    • Risk Threshold: The RBI has updated the level of capital adequacy ratio shortfall that triggers classification into the “risk threshold three” category.

    Trigger Points for PCA Inclusion

    • Capital-to-Risk Weighted Assets Ratio (CRAR): CRAR measures a bank’s capital in relation to risk-weighted assets. If CRAR falls below 9 percent, the RBI takes action, including the submission of a capital restoration plan, restrictions on business activities, and dividend payments. Additional steps may follow if CRAR is below 6 percent but equal to or above 3 percent.
    • Net Non-Performing Assets (NPA): If net NPAs exceed 10 percent but remain below 15 percent, the RBI initiates measures to reduce bad loans and strengthen credit appraisal skills.
    • Return on Assets (RoA): If RoA drops below 0.25 percent, restrictions are imposed on deposit renewal, access to costly deposits and CDs, and the bank’s entry into new lines of business.

    Rationale for Expansion

    • Growing Significance: NBFCs have witnessed substantial growth and have strong linkages with various financial segments.
    • Supervisory Enhancement: In 2022, the RBI introduced the PCA framework for NBFCs to strengthen supervisory tools. The objective is to facilitate timely supervisory intervention and mandate corrective actions to restore financial health.
    • Market Discipline: The framework serves as a mechanism for effective market discipline, ensuring that NBFCs adhere to financial prudence.
  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Climate Change Trends: Trends, Shifts, or Decadal Cycles

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Climate Change

    Mains level: Not Much

    Central Idea

    • Studies have highlighted various climate phenomena in India, including declining monsoon rainfall, intensifying extreme weather events, droughts, heatwaves, and cyclones.
    • However, a critical question that demands attention is whether these changes represent long-term trends, abrupt shifts, or decadal cycles.
    • These distinctions hold significant implications for resource planning and management.

    Understanding Climate Change Terminology

    • Trend: Refers to a continuous, prolonged change in climate variables, such as a steady temperature increase over time. The term “anthropogenic trend” implies changes occurring within human lifetimes.
    • Secular Trend: Indicates a variable’s continuous increase for a specific period within a more extended timeframe, like 30 years within a century.
    • Decadal Variability: Involves oscillations between positive and negative phases over tens of years, potentially resembling a shift.
    • Shift: Represents a rapid transition from one state to another, like a sudden change in rainfall patterns. An example is the shift in seasonal monsoon rainfall from above the long-period average (LPA) to below it.

    Case Study: Cyclones Trend in Arabian Sea

    • A recent study in the journal Climate and Atmospheric Science identified a notable change in cyclone formation potential over the Arabian Sea in the late 1990s.
    • Cyclone-genesis potential depends on factors like sea surface temperature, ocean heat content, wind changes from the surface to upper atmosphere, and wind rotation. These factors have favored increased cyclone formation potential since the 1990s.
    • However, the crucial question is why this rapid increase occurred during this period. The study suggests that it coincided with a shift in the ‘Warm Arctic, Cold Eurasian’ (WACE) pattern rather than being a trend.

    Warm Arctic, Cold Eurasian Pattern

    • The WACE pattern involves warm surface temperatures over the Arctic and cold surface temperatures over Eurasia. It influences upper-level circulation changes that extend into the Indian Ocean sector.
    • Global warming experienced a slowdown during this period, and scientists have proposed the occurrence of a ‘regime shift,’ similar to one observed in the mid-1970s.

    Challenge for India

    • Regardless of whether these climate changes are shifts or decadal cycles, it is essential to understand their potential long-term effects on the monsoon, cyclone frequency, heatwaves, and extreme rainfall.
    • Accurate predictions are vital for planning and allocating resources to adapt to climate risks, such as sea-level rise, heavy rainfall, drought, heatwaves, and cyclones.
    • Climate scientists must focus on understanding natural variability in the local context, especially since this variability is influenced by global warming.
    • For example, the study indicates that the monsoon decadal cycle, previously lasting around 20 years, may now extend further, raising questions about the underlying causes.

    Conclusion

    • Distinguishing between climate trends, shifts, and decadal cycles is essential for India’s adaptation strategies.
    • These distinctions affect how the country prepares for and responds to evolving climate patterns, and climate scientists must strive to unravel the complexities of natural variability to make informed predictions and policy recommendations.