DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam –2nd June 2023
Archives (PRELIMS & MAINS Focus) Small Finance Banks Syllabus Prelims –Economy Context: Recent reports suggest that Small Finance Banks have revolutionised banking services in rural and semi-urban areas. About Small Finance Banks:- IMAGE SOURCE: tnpscthervupettagam.com Small Finance Banks are the financial institutions, which provide financial services to the unserved and unbanked region of the country. They are registered as a public limited company under the Companies Act, 2013. Minimum paid-up capital– 100 cr. Capital adequacy ratio – 15% of risk-weighted assets. Foreign shareholding capped at 74% of paid capital. Foreign Portfolio investment ( FPIs) cannot be more than 24%. Priority sector lending requirement of 75% of total adjusted net bank credit. (UPSCE MAINS: Micro finance has the ability to unleash rural India’s entrepreneurial zeal.) Eligibility Criteria:- Resident individuals/professionals, having at least 10 years of experience in banking and finance can start Small Finance Banks with the approval of RBI. Existing Non-Banking Finance Companies (NBFCs), Micro Finance Institutions (MFIs), and Local Area Banks (LABs) in the private sector. (UPSC CSE: Digital Banks) Indian residents and have a successful record of accomplishment of running their businesses for at least a period of five years must control these. Joint ventures for setting up small finance banks are not permitted. Functions:- Take small deposits and disburse loans. Distribute mutual funds, insurance products and other simple third-party financial products. Lend 75% of their total adjusted net bank credit to priority sector. (Revised Priority Sector Lending Guidelines). Maximum loan size would be 10% of capital funds to single borrower, 15% to a group. Minimum 50% of loans should be up to 25 lakhs. MUST READ: Inclusive Growth SOURCE: THE PRINT PREVIOUS YEAR QUESTIONS Q.1) In India, the Central Bank’s function as the “lender of last resort” usually refers to which of the following? (2020) Lending to trade and industry bodies when they fail to borrow from other sources Providing liquidity to the banks having a temporary crisis Lending to governments to finance budgetary deficits Select the correct answer using the code given below 1 and 2 2 only 2 and 3 3 only Q.2) With reference to Urban Cooperative Banks in India, consider the following statements: (2021) They are supervised and regulated by local boards set up by the State Governments. They can issue equity shares and preference shares. They were brought under the purview of the Banking Regulation Act, of 1949 through an Amendment in 1996 Which of the statements given above is/are correct? 1 only 2 and 3 only 1 and 3 only 1, 2 and 3 World’s largest grain storage plan Syllabus Prelims –Governance Context: Recently, the Union Cabinet approved a programme for “world’s largest grain storage”. About World’s largest grain storage plan:- This scheme intends to construct grain storage facilities in the cooperative sector. Every block will have a dedicated godown with a capacity of 2,000 tonnes. Objective: to revolutionize the storage and distribution of food grains, ensuring their preservation and availability across the country. Supervision of the scheme: an inter-ministerial committee will oversee implementation. Schemes identified for convergence under the Plan:- Ministry of Agriculture and Farmers Welfare:- Agriculture Infrastructure Fund (AIF) Agricultural Marketing Infrastructure Scheme (AMI) Mission for Integrated Development of Horticulture (MIDH) Sub Mission on Agricultural Mechanization (SMAM) Ministry of Food Processing Industries:- Pradhan Mantri Formalization of Micro Food Processing Enterprises Scheme (PMFME) Pradhan Mantri Kisan Sampada Yojana (PMKSY) Ministry of Consumer Affairs, Food and Public Distribution:- Allocation of food grains under the National Food Security Act Procurement operations at Minimum Support Price Benefits:- The plan aims to address not just the shortage of agricultural storage infrastructure. (UPSC MAINS: Evaluate the storage mechanism for agricultural produce in India. ) Functioning as Procurement centres for State Agencies/ Food Corporation of India (FCI) Creation of decentralised storage capacity- it would reduce food grain wastage and strengthen the food security of the country. Providing various options to the farmers-, it would prevent the distressed sale of crops, thus enabling the farmers to realise better prices for their produce. Reduce the cost incurred in the transportation of food grains to procurement centres. MUST READ: Free Foodgrain Scheme SOURCE: THE HINDUSTAN TIMES PREVIOUS YEAR QUESTIONS Q.1) Which of the following factors/policies were affecting the price of rice in India in the recent past? (2020) Minimum Support Price Government’s trading Government’s stockpiling Consumer subsidies Select the correct answer using the code given below: 1, 2 and 4 only 1, 3 and 4 only 2 and 3 only 1, 2, 3 and 4 Q.2) In India, which of the following can be considered as public investment in agriculture? (2020) Fixing Minimum Support Price for agricultural produce of all crops Computerization of Primary Agricultural Credit Societies Social Capital Development Free electricity supply to farmers Waiver of agricultural loans by the banking system Setting up cold storage facilities by the governments. In India, which of the following can be considered as public investment in agriculture? Select the correct answer using the code given below: 1, 2 and 5 only 1, 3, 4 and 5 only 2, 3 and 6 only 1, 2, 3, 4, 5 and 6 Chytridiomycosis Syllabus Prelims –Science and Technology Context: Recently, scientists developed a diagnostic test for Chytridiomycosis. About Chytridiomycosis:- IMAGE SOURCE: SLIDESERVE.COM Chytridiomycosis is a fungal disease in frog populations. (UPSC CSE: White fungus) It has caused severe declines in over 500 frog species and led to 90 extinctions, making it the deadliest animal disease known. (UPSC CSE: Mucormycosis ) How does it infect? It infects frogs skin. This damages their ability to balance water and salt levels. Origin- the disease originated in Asia. It spread globally through amphibian trade and travel. Mortality rate- extremely high. Natural immunity:- Some amphibian species have some form of natural immune resistance and do not become sick when they carry the fungus. This Immunity might come from anti-microbial chemicals within the skin, symbiotic bacteria on the skin, white blood cells and antibodies in the blood, or combinations of these mechanisms. So far, no clear trend has been
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