Daily CURRENT AFFAIRS

Daily Current Affair - UPSC/KAS Exams - 18th August 2021

What is in news : Banks in Karnataka have reported a 26 per cent rise in non-performing assets (NPA) in priority sectors, including agriculture, a fallout of the economic distress caused by the Covid-19 pandemic and the drought-flood situation in the state.

• Generally speaking, NPA is any asset of a bank which is not producing any income.
• In other words, a loan or lease that is not meeting its stated principal and interest payments.
• On a bank’s balance sheet, loans made to customers are listed as assets. The biggest risk to a bank is when customers who take out loans stop making their payments, causing the value of the loan assets to decline.

Criteria

• Loans don’t go bad right away. Most loans allow customers a certain grace period. Then they are marked overdue. After a certain number of days, the loan is classified as a nonperforming loan.
• Banks usually classify as nonperforming assets any commercial loans which are more than 90 days overdue and any consumer loans which are more than 180 days overdue.
• For agricultural loans, if the interest and/or the instalment or principal remains overdue for two harvest seasons; it is declared as NPAs. But, this period should not exceed two years. After two years any unpaid loan/instalment will be classified as NPA.

Categories

MAHITI FOR MAINS

Impact of the NPAs:

• It will bring a scarcity of funds in the Indian security markets.
• Few banks will be willing to lend if they are not sure of the recovery of their money.
• Shareholders of the banks will lose a lot of money as banks themselves will find it tough to survive in the market. This will lead to a crisis of confidence in the market.
• The price of loans, i.e. the interest rates will shoot up badly. Shooting of interest rates will directly impact the investors who wish to take loans for setting up infrastructural, industrial projects etc.
• Lower growth rates and of course higher inflation because of the higher cost of capital.
• This trend may continue in a vicious circle and deepen the crisis.
• Total NPAs have touched figures close to the size of UP budget. Imagine if all the NPA was recovered, how well it can augur for the Indian economy.

NAMMA QUESTION FOR MAINS - Elucidate the ways to handle Non-performing assets

What is it : Initiative to test all children for COVID-19 in Karnataka

Details :

• Taken up jointly by the Health and the Women & Child Development Departments
• Besides, children with low immunity and other co-morbidities will be identified, and provided with nutritious food and supplements to boost their immunity.
• All measures will be taken to monitor their health

What is in news : The registration of documents through KAVERI e-Swathu has been stopped following the migration to a new secure platform by the Rural Development and Panchayat Raj (RDPR) Department

About :

• There are two documents available on E-Swathu:
  • Form 9-known as A-Khata document, is created by the gram panchayat, specifically for non-agricultural properties under their jurisdiction.
  • Form 11- issued by the respective gram panchayat offices for non-agricultural properties under their jurisdiction.
• The major role of E Swathu Karnataka:
  • Is to maintain the latest records of ownership and physical details of properties under each gram panchayat jurisdiction
  • Updating of details, in case of inheritance, transfer of ownership or gift of property, acquisition of land for government projects, court cases, restrictions, liabilities, etc.
• A property owner can share property details with the gram panchayat and other related government departments, courts and town planning offices, to prevent forgery and to maintain records.

ECONOMY

What is in news : Centre has  notified RoDTEP Scheme Guidelines and Rates (Remission of Duties and Taxes on Exported Products)

About the scheme:

• The scheme was announced in 2020 as a replacement for the Merchandise Export from India Scheme (MEIS), which was not compliant with the rules of the World Trade Organisation.
• The scheme would refund to exporters the embedded central, state and local duties or taxes that were so far not being rebated or refunded and were, therefore, placing India’s exports at a disadvantage.

Significance:

• Indian exporters will be able to meet the international standards for exports as affordable testing and certification will be made available to exporters within the country instead of relying on international organizations.
• Also under it, tax assessment is set to become fully automatic for exporters. Businesses will get access to their refunds for GST via an automatic refund-route.
• This would increase the economy for the country and working capital for the enterprise.

What is in news : The Reserve Bank of India introduced the financial inclusion index

Details:

• The Financial Inclusion Index will be used to capture the extent of financial inclusion in India.
• This index was part of the announcements made in first bi-monthly monetary policy of April 2021.

About Financial Inclusion Index (FI Index)

• Financial Inclusion Index has been conceptualised as a comprehensive index comprising the details of banking, insurance, investments, postal and pension sector in consultation with government and sectoral regulators.
• It captures information on different aspects of financial inclusion in a single value in the range of 0 and 100.
• 0 indicates complete financial exclusion while 100 indicates complete financial inclusion.
• It comprises of three broad parameters such as Access, Usage, and Quality. Each of these parameters comprises of various dimensions, that are computed on the basis of different indicators.
• It is responsive to ease of access, availability & usage of services along with quality of services, comprising of all 97 indicators.
• FI-Index has been created without any base year. It reflects cumulative efforts of all stakeholders towards financial inclusion. It will be published annually in July.

What is in news : The Odisha Forest and Environment Department is all set to begin ‘Island Odyssey’ and ‘Hirakud Cruise’ ecotourism packages for tourists to islands inside the reservoir when COVID-19 restrictions are lifted. ‘Cattle island’, one of three islands in the Hirakud reservoir, has been selected as a sight-seeing destination.

About HIRAKUD :

• Hirakud Dam is built across the Mahanadi River, close to Sambalpur city in Odisha in India.
• Type: It is a composite structure of earth, concrete and masonry. It is the longest major earthen dam in India.
• Background: It is one of the first major multipurpose river valley projects started after India's independence and began operations in 1957.
• With successful irrigation provided by the dam, Sambalpur is called the rice bowl of Odisha.

By : Union Ministry of Coal & Mines

About :

• In this year, coal PSUs of the Ministry of Coal have set an ambitious target to cover 2385 hectares of area under “Go Greening” drive. Areas will be covered under bio-reclamation or plantation.
• Go Greening drive will be provided the right boost by launching Vriksharopan Abhiyan 2021.
• More than 300 plantation sites will be connected during the Abhiyan around coalfields across India.

How energy demand is met in India?

Energy demand would primarily be reliant on coal because of its affordability and availability. Thus, coal sector plays a very crucial role in meeting India’s energy demand. In the line, coal sector in India has been taking various innovative initiatives to promote sustainable mining.

SNIPPETS

• Karnataka's newly appointed Chief minister gets 'ANUGRAHA' as his new residence. ‘Krishna’ is the designated home office of the CM
• The public sector undertaking of the Defence Ministry, Hindustan Aeronautics Limited (HAL), has successfully carried ground tests for making a civilian aircraft named ‘Hindustan-228’. It is a 19-seat multirole utility aircraft. It has been built on the basis of existing frame of military plane Dornier 228.
• Named after the imaginary sea mermaid, Acetabularia jalakanyakae group of botanists from Central University of Punjab, Bathinda (CUPB) have discovered this algal species from the Andaman and Nicobar Islands, after nearly four decades. Measuring as small as 20 to 40 mm, the stunning bright green algae, resembling an umbrella or a mushroom, has grooves on its cap measuring 15 to 20mm in diameter.