DAILY NEWS DIARY 25.01.2021

DAILY NEWS DIARY

Of

25.01.2021

FOR PRELIMS AND MAINS

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Warm Greetings.

 DnD aims to provide every day news analysis in sync with the UPSC pattern.  It is targeted at UPSC – Prelims & Mains.  Daily articles are provided in the form of Question and Answers  To have a bank of mains questions.  And interesting to read.  Providing precise information that can be carried straight to the exam, rather than over dumping.

Enjoy reading.

THE HINDU - TH INDIAN EXPRESS - IE BUSINESS LINE - BL ECONOMIC TIMES - ET TIMES OF - TOI

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INDEX

 Essay Paper Editorial 1. RBI’s plan to tighten scrutiny of large NBFCs ………………………………………………………………………………….…04

GS 2  Polity 1. “To Vote is to Exist” ……………………………………………………………………………………………………………………..…05

GS 3  Environment 1. Sunderbans, their significance and biodiversity………………………………………………………………………..……09

Snippets 1. Chinese expansionary policy In India……………………………………………..…………………………….………………..09

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ESSAY PAPER EDITORIAL Q – Explain why “The RBI’s plan to tighten scrutiny of large NBFCs is critical for financial stability”? INTRODUCTION = The RBI has proposed a significant shift in its regulatory approach towards India’s non- banking financial companies (NBFCs), from a general approach of light touch regulation to one that monitors larger players almost as closely as it does banks. If implemented, this could be the biggest overhaul of the regulatory framework for such finance companies (or shadow banks) in over two decades. Earlier, after multitudes of investors were left high and dry as CRB group firms reneged on high-interest fixed deposits in 1997, Parliament bestowed greater powers over such firms to the central bank to fix the mess. The trigger now is similar though the scale of the problem has changed. . Now - the size of NBFC balance sheets is now more than a quarter of that of banks’ balance sheets, from just about 12% in 2010. In absolute terms, their balance sheets have more than doubled, from ₹20.7-lakh crore in 2015 to ₹49.2-lakh crore in 2020. 1. While this growth is a reflection of how lighter regulations have given them the flexibility to meet a range of financing needs, from home loans to micro-finance and large infrastructure projects, it also manifested into a systemic risk. Ex- and that risk was apparent when one of the largest infrastructure investment-focused NBFC players, IL&FS, unravelled in 2018, with its payment defaults catalysing a crisis for the entire sector. 2. The collateral damage meant NBFCs could not raise funds easily, and faced liquidity pressures that escalated to solvency concerns in some instances. Ex- The descent of one such player, Dewan Housing Finance Corporation Limited (DHFL), began around the same time — its creditors approved a resolution plan for the firm last week. The RBI’s proposed regulatory reaction to such large NBFC failures that have had a systemic impact on the sector, could not have come sooner. It has sought to strike a balance between the need to be nimble and mitigate systemic risks, with a four-tiered regulatory structure.

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This entails a largely laissez-faire approach for smaller NBFCs, plugging some of the arbitrages available to mid-sized NBFCs vis-à-vis banks, and imposing tougher ‘bank-like’ capitalisation, governance and monitoring norms for the largest players and those which could pose a systemic risk due to the nature of their operations. A top tier has been envisaged with even more scrutiny, but the RBI wants to ideally use this approach only when a certain large player poses ‘extreme risks’. Need – 1. Given the banking sector’s own woes over the past two years (PMC Bank, Yes Bank, Lakshmi Vilas Bank), a holistic reboot of the oversight mechanism for NBFCs and banks is critical to retain confidence and maintain financial stability which central bank Governor Shaktikanta Das has termed a ‘public good’. It is hoped that the blueprint for the regulation of NBFCs which can lend for activities banks often do not support, be it micro-loans or infrastructure projects, is formalised soon. This would ensure the fledgling economic recovery is not hampered by funding constraints.

GS 2  Polity Q – Discuss Election Commission of India’s initiatives taken to nudge the slogan of “To Vote is to Exist”? BACKGORUND = Celebrating on January 25 every year since 2011 all across the country to mark the foundation day of the Election Commission of India on January 25, 1950. The main purpose of the NVD celebration is to encourage, facilitate and maximise enrolment, especially for the new voters. Through initiatives such as-

1. The trials of the Election Commission’s remote voting project would be carried out. A research project on remote voting using cutting-edge technology with IIT-Chennai and other leading institutions and it has made good progress. The system being developed by the IIT-M uses blockchain for two-way remote voting at designated centres 2. Another significant change we can look forward to is grant of postal ballot facility to overseas electors. 3. The President will also launch ECI’s Web Radio:‘Hello Voters.’ This digital radio service will stream voter awareness programmes. It will be accessible through a link on the Election Commission of India's website. It will provide information and education on electoral processes through songs, drama,

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discussions, sports, stories of elections etc. in , English and regional languages from all over the country. 4. In another development, electors will be able to download electronic versions of the elector photo ID card, or e-EPIC. The digital version of EPICs would be available for download from the voter helpline app, voterportal.eci.gov.in and nvsp.in. The e-EPIC would be a non-editable PDF version of the EPIC that can be downloaded on the phone and stored on the DigiLocker app or printed from a computer. 5. President Ram Nath Kovind will confer the national awards for the year 2020-21. The national award for the Best Electoral Practices will be conferred on state and district level officers for their outstanding performance in the conduct of elections in different spheres such as IT initiatives, security management, election management during Covid-19, accessible election and contribution in the field of voter awareness and outreach. The national awards will also be given to important stakeholders like national icons, CSOs and media groups for their valuable contribution towards voters’ awareness.

GS 3  Environment Q – Write a comprehensive note on the Sunderbans, their significance and biodiversity? BACKGROUND = The Indian Sunderbans, which is part of the largest mangrove forest in the world, is home to 428 species of birds, a recent publication of the Zoological Survey of India (ZSI) states. The Indian Sunderbans, which covers 4,200 sq. km, also includes the Sunderban Tiger Reserve of 2,585 sq. km — home to about 96 royal Bengal tigers (as per the last census in 2020). It is a world heritage site and a Ramsar site (a wetland site designated to be of international importance).

. The publication, Birds of the Sundarban Biosphere Reserve, not only documents the avifauna of the Sunderbans, but also serves as a comprehensive photographic field guide, with detailed distribution and locality data for all the species from the region.

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. Publications like these aim to kindle interest and spread knowledge about birds among people from all walks of life — from forest staff to tourists to amateur birdwatchers. . The scientists said of the 428 birds listed, some, like the masked finfoot and the Buffy fish owl, are recorded only from the Sunderbans. . The area is home to nine out of 12 species of kingfishers found in the country as well rare species such as the Goliath heron and the spoon-billed sandpiper. . India has over 1,300 species of birds and if 428 species of birds are from the Sunderbans, it means that one in every three birds in the country is found in the unique ecosystem. . Publications such as the above not only highlights the ecological and conservation aspect of the Sunderbans, but through detailed description of bird species and localities where they are found we want to encourage birdwatching. As scientists and nature lovers are observing the 125th birth anniversary year of Salim Ali, the Birdman of India, birdwatching not only brings people closer to nature, but also creates awareness and livelihood opportunities for the locals. . Sunderbans are the most diverse of natural landscapes and accounts for 60% of all mangrove forests in the country. . And the mudflats exposed in the low tides, rich in microorganism deposited during tidal activity, are ideal feeding for migratory birds. The mudflats and wetlands of the Sunderbans act as a stopover site for migratory flight south [southwards] and back.

Snippets  Security Q – What is causing the Chinese expansionary policy In India and How? . As India and China started the ninth round of Corps Commander talks on Sunday to address the nine- month-long standoff along the (LAC) in eastern , the head of one of the border villages claimed that- 1. Chinese vehicles were using Indian roads to enter Indian territory. 2. Defence Minister Rajnath Singh had informed Rajya Sabha that face-offs with the Chinese PLA happened because “patrols were interrupted”. 3. There was no commonly delineated LAC and there was an overlap in the perception of the LAC in many areas. . Urgain Tsewang, the nambardaar (village head) of (Kakjung), one of the last settlements in the , saw that the Chinese had entered Indian territory and had transgressed more than 1 km from the border. . The area where the Chinese are trying to assert themselves is close to Patrolling Point 38. . Indian troops have been denied access to patrolling points (PPs) number 9, 10, 11, 12, 12A, 13, 14, 15, 17, 17A from in the north to (lake) in the south. In all, there are more than 65 PPs from the base of Karakoram to in the south.

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. China has ingressed about 8 km in the Finger area of Pangong Tso and Indian troops have not been able to patrol beyond Finger 4 since the last week of April 2020, when China started amassing troops. Earlier, Indian troops could patrol up to Finger 8. The other areas where buildup continues are the Depsang Plains, Galwan, Gogra-Hot Springs and the south bank of Pangong.

For Prelims - The Patrolling Points are the end points along the undefined LAC up to which Indian troops patrol after starting from their respective base camps.

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Which from the following list is an institution of self-regulation for the Indian media? 1. Press Council of India 2. News Broadcasters Association (NBA) 3. Broadcasting Content Complaints Council 4. News Broadcasters Federation a. 1 and 2 b. 2,3 and 4 c. 3 and 4 d. None of the above

 Hey from yesterday…. Which of the following statements is/are CORRECT regarding what happens to a State Cabinet Ministry after its Minister submits voluntary Resignation? a. The Department would vest with the Chief Minister b. A fellow Minister can be appointed to the Department by the Governor c. A fellow Minister can be appointed to the Department by the Chief Minister d. Both a and b

Answer – D NOTE: West Bengal Forest Minister Rajib Banerjee resigned from the Cabinet. The Governor accepted the resignation of Mr. Banerjee and the charge of Forest Department would vest with the Chief Minister, until further a fellow minister to be appointed by the governer.

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UPSC - CSE

COMPREHENSIVE & FOUNDATION COURSE

OFFLINE From: 04.01.2021 ONLINE From: 08.01.2021

COURSE INCLUDES: • NCERT • Prelims & Main • GS Foundation • CSAT • Daily Tests & Writing Practice

• Optionals (ANTROPOLOGY / GEOGRAPHY) • Nine Months Course • Mentoring with Individual Focus • SAVVY Sessions • IAO Certification of Quality

OPTIONALS

NEW OFFLINE COURSES ANTHROPOLOGY by Mrs. SOSIN REVELLA From: 23/12/2020

OPTIONALS NEW OFFLINE COURSES

SOCIOLOGY by DR. HARSHAVARDHAN

From: 03/02/2021

OPTIONALS

NEW OFFLINE COURSES

12 GEOGRAPHY by MR. SOHAN NARESH From: 03/02/2021 Page

OPTIONALS NEW OFFLINE COURSES TELUGU LITERATURE by DR. GARIKIPATI SUBRAMANYAM

From: 27/01/2021

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