Daily Current Affairs : 28th December 2023

Topics Covered

  1. RBI report on Trend and Progress of Banking in India
  2. SLIM
  3. PM JANMAN
  4. Facts for Prelims

1 . RBI report on Trend and Progress of Banking in India


Context: The Gross Non-Performing Assets (GNPA) ratio of Indian scheduled commercial banks (SCBs) consistently improved in the second quarter of FY24, sliding to a fresh decadal low, as per the Reserve Bank of India’s (RBI’s) report titled ‘Trend and Progress of Banking in India’. 

Findings of the report

  • The improvement in asset quality, measured by GNPA ratios, that began in 2018-19 continued during 2022-23. 
  • The GNPA ratio of SCBs fell to a decadal low of 3.9% at end-March 2023 and further to 3.2% at end-September 2023. 
  • About 45% of the reduction in SCBs’ GNPAs during 2022-23 came from recoveries and upgradations. 
  • The consolidated balance sheet of SCBs (excluding Regional Rural Banks) grew by 12.2% in 2022-23, the highest in nine years. The main driver of this growth on the asset side was bank credit, which recorded its fastest pace of expansion in more than a decade. 
  • During 2022-23, the combined balance sheet of commercial banks expanded in double digits, driven by sustained credit growth. Higher lending rates and lower provisioning requirements helped improve the profitability of banks and shored up the capital positions. 
  • The capital to risk weighted assets ratio (CRAR) of SCBs was 16.8% at end-September 2023, with all bank groups meeting the regulatory minimum requirement and the common equity tier 1 (CET1) ratio requirement. 
  • The combined balance sheet of urban co-operative banks (UCBs) expanded by 2.3% in 2022-23, driven by loans and advances. Their capital buffers and profitability improved through 2022-23 and Q1:2023-24. 
  • The consolidated balance sheet of non-banking financial companies (NBFCs) expanded by 14.8% in 2022-23, led by double-digit credit growth. 

About NPAs

  • A nonperforming asset (NPA) is a debt instrument where the borrower has not made any previously agreed upon interest and principal repayments to the designated lender for an extended period of time.  
  • The nonperforming asset is, therefore, not yielding any income to the lender in the form of interest payments. 
  • RBI implemented the 90 days overdue norm for identifying NPAs.  

Types of NPAs

  • Sub-Standard Assets: An asset is classified as a sub-standard asset if it remains as an NPA for a period less than or equal to 12 months.  
  • Doubtful Assets: An asset is classified as a doubtful asset if it remains as an NPA for more than 12 months.  
  • Loss Assets: An asset is considered a loss asset when it is “uncollectible” or has such little value that its continuance as a bankable asset is not suggested. However, some recovery value may be left in it as the asset has not been written off wholly or in parts. 

2 . Smart Lander for Investigating Moon (SLIM)


Context: Japan’s Smart Lander for Investigating Moon (SLIM) spacecraft entered into orbit around the moon after a months-long journey, and ahead of its planned moon-landing attempt. 

What is SLIM? 

  • SLIM is a spacecraft built and launched by the Japan Aerospace Exploration Agency (JAXA) in 2023, from the Tanegashima spaceport. 
  • It weighed only 590 kg at launch, which is almost one-seventh of Chandrayaan-3, which weighed 3,900 kg at launch.  
  • SLIM was launched together with XRISM, a next-generation X-ray space telescope, onboard an H-2A rocket. 
  • JAXA had planned to launch SLIM and XRISM together, so delays in readying XRISM pushed SLIM’s launch date from 2021 to 2023. 
  • Notably, JAXA launched SLIM only two weeks after the surface component of India’s Chandrayaan-3 mission succeeded and Russia’s Luna 25 spacecraft failed. 
  • It will also mark the second Japanese attempt this year to soft-land on the moon: the HAKUTO-R M1 lander, built by Japanese company ispace, crashed after its engines shut down too soon during the landing. 

How did SLIM get to the moon? 

  • SLIM is lighter because it carried much less fuel. Compared to Chandrayaan-3’s 3.9 tonnes, the propulsion module alone weighed 2.1 tonnes.  
  • It took four months because it followed a longer but more fuel-thrifty route based on weak-stability boundary theory. 
  • Once it was launched into an orbit around the earth, SLIM swung around the planet multiple times, building up its kinetic energy with each swing. Once it was travelling fast enough, it shot up towards the moon’s orbit.  
  • But once it got near the moon, instead of slowing down and being captured by the moon’s gravity, it allowed itself to be deflected in the moon’s direction even as it shot past lunar orbit, deeper into space. 
  • This deflection is the result of the combined forces exerted by the earth and the moon.  
  • Physicists worked it out in the late 1980s for another JAXA mission, called ‘Hiten’. 

What will SLIM do on the moon? 

  • SLIM’s standout feature is its reputation as the “moon sniper”,  a title derived from what it will do on the moon on January 19: it will try to land within 100 metres of its chosen landing site. This is an unusually tight limit given the history of moon-landing missions. For example, the ‘Vikram’ lander of Chandrayaan-3 was designed to descend in an elliptical area that was 4 km long downrange and 2.5 km wide cross-range, and it eventually landed at a spot 350 metres away from a predetermined one.
  • SLIM, in effect, will set the record on January 19 for attempting to soft-land with the smallest ever area tolerance on the moon. The chosen site is near the Shioli Crater, at 13.3º S and 25.2º E. Just as the ‘Vikram’ lander of the Chandrayaan-3 mission used data from the Chandrayaan 2 orbiter to help guide its descent, SLIM will use data from JAXA’s SELENE orbiter, which ended in 2009.
  • Just before it lands, SLIM will deploy two small rovers called Lunar Excursion Vehicle (LEV) 1 and 2. LEV-1, LEV-2, and SLIM will together study the lunar surface near the landing point, collect temperature and radiation readings, and attempt to study the moon’s mantle. 

How will SLIM affect Chandrayaan-4? 

  • When the Indian Space Research Organisation successfully executed its Chandrayaan-3 mission by soft-landing a robotic craft on the moon’s surface, it also concluded the second phase of its lunar exploration programme.
  • The first mission of its third phase is the Lunar Polar Exploration (LUPEX) mission, a.k.a. Chandrayaan 4. 
  • LUPEX will be an Indian-Japan joint enterprise with an earliest launch date in 2026. It will explore an area closer to the moon’s south pole than Chandrayaan-3 did. 
  • The terrain near either of the moon’s poles is rocky, pocked with several craters, and full of steep slopes. Axiomatically, if there is a suitable landing spot for a (relatively) large landing module or rover, its downrange and cross-range limits will be lower than they were for Chandrayaan-3. The craft will have to land as close to the site as possible, if not at the site itself. 
  • The technologies JAXA will test with SLIM, but especially a feature-matching algorithm and navigation systems, will be crucial for this aspect of LUPEX. 
  • JAXA is expected to provide the launch vehicle and the lunar rover while India will provide the lander module. The landing site is yet to be fixed. 

3 . PM JANMAN


Context: The Union Cabinet approved the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM JANMAN).  

About the Scheme

  • It is aimed at providing PVTG households and habitations with basic facilities such as safe housing, clean drinking water and sanitation, improved access to education, health and nutrition, road and telecom connectivity, and sustainable livelihood opportunities. 
  • Saturation will also be ensured for schemes like Pradhan Mantri Jan Arogya Yojana (PMJAY), Sickle Cell Disease Elimination, TB Elimination, 100% immunisation, PM Poshan, PM Jan Dhan Yojana, etc. 
  • This initiative is part of the Pradhan Mantri-PVTG Development Mission announced in India’s 2022-23 Union Budget, allocating Rs 15,000 crore over three years to develop them. 

Who are PVTGs? 

  • In 1960-61, the Dhebar Commission identified disparities among Scheduled Tribes, leading to the creation of the “Primitive Tribal Groups” (PTG) category. In 2006, this category was renamed Particularly Vulnerable Tribal Groups (PVTGs). 
  • Initially identifying 52 groups, the category was expanded to include 75 groups in 22,544 villages across 18 states and one Union Territory of India, totalling about 28 lakh individuals. 
  • These groups, living mainly in Maharashtra, Madhya Pradesh, Chhattisgarh, Jharkhand, Odisha, Andhra Pradesh, and Tamil Nadu, are characterised by pre-agricultural lifestyles, low literacy, small or stagnant populations, and subsistence economies. 
  • Population sizes vary significantly, from under 1,000 in some groups, such as the Great Andamanese (around 50) and the Onge (around 100), to over 1 lakh in others, such as Maria Gond of Maharashtra and Saura in Odisha. 
  • Some tribes in central India, like Birhor, face stagnation, while the Onge and Andamanese are experiencing a decline. 

What are the challenges in their development? 

  • PVTGs are severely marginalised due to their isolation, low population, and distinct socio-economic and cultural traits. 
  • They struggle with limited access to basic services, social discrimination, and vulnerability to displacement from development and natural disasters. 
  • They have little political representation, hindering their participation in decision-making. 
  • Mainstream society often overlooks their traditional knowledge and practices, and stereotypes about their backwardness are prevalent. 
  • They are also battling loss of traditional livelihoods and resource rights, lack of market knowledge for Non-Timber Forest Produce, and exploitation by middlemen, threatening their traditional occupations. 

What schemes have been floated for them? 

  • The Centre and state governments have introduced several initiatives to support PVTGs. 
  • The PVTG Development Plan provides education, healthcare, and livelihood opportunities while preserving traditional knowledge. 
  • The Pradhan Mantri Janjatiya Vikas Mission (PMJVM) focuses on market linkages and Minor Forest Produce (MFP) procurement at Minimum Support Prices. 
  • Other significant schemes include the Pradhan Mantri Adi Adarsh Gram Yojana, Integrated Tribal Development Project (ITDP) and Tribal Sub-Plan (TSP), which collectively aim for the holistic development of tribal areas. 
  • Additional measures like Eklavya Model Residential Schools, land titles under the Forest Rights Act 2006, Support to Tribal Research Institute (STRI) scheme, the Scheduled Castes and Scheduled Tribes (Prevention of Atrocities) Act 1989, The Panchayats (Extension to Scheduled Areas) Act 1996, and direct recruitment through reservations further aid in education, self-governance, and protection against discrimination. 
  • However, challenges in implementation, such as resource limitations, lack of awareness, and unequal treatment among different PVTG groups have affected the effectiveness of these schemes. 

What does PM-JANMAN do differently? 

  • Proper identification and recognition: The criteria for identifying PVTGs have been criticised for being outdated. Some PVTGs are not recognised as Scheduled Tribes in certain states, and the list containing repetitive names has led to confusion and exclusion. Reports by Dr. Hrusikesh Panda and Virginius Xaxa highlighted these concerns. The actual number of PVTGs is around 63, accounting for overlaps and repetitions, as per the publication ‘The Particularly Vulnerable Tribal Groups of India — Privileges and Predicaments’ by the Anthropological Survey of India. Baseline surveys have only been conducted for about 40 PVTG groups, emphasising the need for targeted development planning. The government’s initiative to create a Human Development Index for PVTGs is a significant step towards addressing these vulnerabilities. 
  • Participatory bottom-up approach: To help PVTGs effectively, the scheme abandons the ‘one-size-fits-all’ approach in favour of customised strategies that respect their unique needs and priorities. It actively involves PVTGs in decision-making, addressing land rights, social inclusion, and cultural preservation. This community-based strategy embraces their cultural practices, beliefs, and traditions, ensuring their participation in planning, implementing, and monitoring development projects. 
  • Livelihood promotion: Providing skills training and resources, like land and credit, will help in sustainable livelihoods. Implementing the Forest Rights Act by granting land titles secures access to forest resources. Section 3(1)(e) of the FRA specifically supports the rights of primitive tribal groups and pre-agricultural communities. Additionally, encouraging traditional technologies and skill enhancement through industry partnerships will help maintain cultural heritage while promoting sustainable development. 
  • Health, nutrition and education: Outreach strategies like Mobile Medical Health Units will be crucial for providing healthcare in remote areas. These strategies need to be tailored for specific health issues like teenage pregnancies and oral health, and overcoming language and cultural barriers through sensitised healthcare workers or hiring those from within the community. Collaboration with trusted traditional healers can also aid in addressing complex health issues. Incorporating their culture and language into the curriculum, providing transportation, and training teachers about PVTG cultural contexts can enhance education accessibility. Additionally, incentives for personnel working in PVTG areas and special educational institutes focused on PVTG needs can further improve opportunities for these communities. 
  • Infrastructure development: The habitations of PVTGs often don’t meet the criteria for schemes such as the Pradhan Mantri Grameen Sadak Yojana, Pradhan Mantri Awas Yojana and Jal Jeevan Mission due to factors like population requirements or lack of surveys. Guidelines for infrastructure schemes, thus, have been relaxed to improve access to housing, water, sanitation, electricity, and connectivity. Adopting a tola-based (habitation) approach rather than a Gram Panchayat-based approach for development planning will better address these communities’ specific needs. 

4 . Facts for Prelims


Ammonia

  • Ammonia is a colorless, poisonous gas with a familiar noxious odour. 
  • It occurs in nature, primarily produced by anaerobic decay of plant and animal matter; and it also has been detected in outer space.  
  • Some plants, mainly legumes, in combination with rhizobia bacteria, “fix” atmospheric nitrogen to produce ammonia. 
  • Ammonia is produced commercially via the catalytic reaction of nitrogen and hydrogen at high temperature and pressure. The process was developed in 1909 by German chemists Fritz Haber and Carl Bosch. 
  • Most ammonia production is used directly or indirectly in agriculture. 
  • Chemical fertilizers made from ammonia include urea, ammonium phosphate, ammonium nitrate, and other nitrates. 
  • It is highly soluble in water. 

Huntington Disease

  • Huntington’s disease (HD) is an inherited disorder that causes nerve cells (neurons) in parts of the brain to gradually break down and die. 
  • The disease attacks areas of the brain that help to control voluntary (intentional) movement, as well as other areas. 
  • People living with HD develop uncontrollable dance-like movements (chorea) and abnormal body postures, as well as problems with behavior, emotion, thinking, and personality.  
  • When a parent has HD, each child has a 50% chance of inheriting the copy of chromosome 4 that carries the HD mutation. 
  • It is caused by a mutation in the gene for a protein called huntingtin. The defect causes the building blocks of DNA called cytosine, adenine, and guanine (CAG) to repeat many more times than they normally do. 
  • There is no treatment that can stop or reverse HD, but some of the symptoms can be treated. 

Participatory Notes

  • Participatory notes are financial instruments required by investors or hedge funds to invest in Indian securities without having to register with the Securities and Exchange Board of India (SEBI).  
  • P-notes are among the group of investments considered to be Offshore Derivative Investments (ODIs). 
  • Any dividends or capital gains collected from the securities go back to the investors. 
  • They are popular because investors anonymously take positions in Indian markets, and hedge funds may anonymously carry out their operations.  However, because of the anonymity, Indian regulators face difficulty determining a participatory note’s original owner and end owner.

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