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Prelim Booster
News Discussion
01-January-2024
 Prelim Booster
News Discussion
01-January-2023
 Domestic Systemically Important Banks (D-SIBs)
Recently, the Reserve Bank of India (RBI) issued its list of Domestic
Systemically Important Banks (D-SIBs).

👉👉 About
◎ RBI's Updated Categorization ➔ RBI moved State
Bank of India (SBI) and HDFC Bank to higher buckets
in its latest update. At the same time, ICICI Bank
continues to be in the same bucketing structure as
last year.
◎ SBI (buckets 3 to 4) and HDFC Bank (buckets 1 to 2).
 Domestic Systemically Important Banks (D-SIBs)

◎ Basis of Updation ➔ The current update is based on the factoring in the increased
systemic importance of HDFC Bank post the merger of erstwhile HDFC Limited into
HDFC Bank on July 1, 2023.
◎ Common Equity Requirement ➔ Based on the bucket in which a D-SIB is placed, an
additional common equity requirement must be applied.
◎ Common Equity Tier 1 (CET1) is a component of Tier 1 capital primarily common
stock held by a bank or other financial institution.

👉👉 About Domestic Systemically Important Banks (D-SIBs):

◎ The Reserve Bank issued the Framework for dealing with Domestic Systemically
Important Banks (D-SIBs) in 2014.
 Domestic Systemically Important Banks (D-SIBs)

◎ The D-SIB framework requires the Reserve Bank to disclose the names of banks
designated as D-SIBs starting from 2015 and place them in appropriate buckets
depending on their Systemic Importance Scores (SISs).
◎ Based on the bucket in which a D-SIB is placed, an additional common equity
requirement must be applied.
Key Features:
◎ ‘Too big to fail’ ➔ D-SIB means that the bank is ‘too big to fail’.
○ Potential Ramifications of Failure: If a bank fails, there would be significant
disruption to the essential services it provides to the banking system and the
overall economy.
◎ Government Support ➔ The too-big-to-fail tag also indicates that the government is
expected to support these banks in case of distress.
 Domestic Systemically Important Banks (D-SIBs)

◎ Classification ➔ RBI classifies the banks under five buckets depending on the order
of importance.
◎ Factors Contributing to Systemic Importance ➔ These banks become systemically
important due to their size, cross-jurisdictional activities, complexity and lack of
substitute and interconnection.
◎ Quantitative Criterion ➔ Banks whose assets exceed 2% of GDP are considered part
of this group.
◎ Enhanced Capital Requirements ➔ Due to their economic and national importance,
the banks need to maintain a higher share of risk-weighted assets as tier-I equity.
 Lumpy Skin Disease

◎ Treatment ➔ It has no direct antiviral treatment, instead, the infected animals

receive supportive care, which involves use of antibiotics.
◎ Effect on cattle ➔
○ Reduced milk production
○ Male sterility
○ Pregnancy loss
○ Weight loss
 PM SVANidhi

The Union Minister for Housing & Urban Affairs inaugurated India's first
'Zero Waste Street Food Festival,' highlighting the pivotal role of the Prime
Minister Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) Scheme in
empowering street vendors.
👉👉 About
● Nodal Ministry ➔ Ministry of Housing and Urban
Affairs.
● Objective ➔ To facilitate a collateral-free working
capital loan to street vendors to restart their
businesses, which were adversely impacted during
the Covid-19 pandemic.
● Implementing Agency ➔ Small Industries
Development Bank of India (SIDBI).
 PM SVANidhi

◎ The duration of the scheme has been extended till December 2024, with a focus
on enhanced collateral-free affordable loan corpus and increased adoption of
digital transactions.
◎ Scheme Benefits ➔ Vendors can avail of a working capital loan of up to Rs.
10,000, which is repayable in monthly installments over the tenure of one year.
◎ On timely/ early repayment of the loan, an interest subsidy @ 7% per annum will
be credited to beneficiaries' bank accounts through Direct Benefit Transfer on a
quarterly basis.
◎ The scheme promotes digital transactions through cash-back incentives up to an
amount of Rs. 100 per month.
◎ The vendors can avail the facility of escalation of the credit limit on timely/ early
repayment of loans.
 PM SVANidhi

◎ State/Urban Local Bodies are responsible for the identification of eligible street
vendors and the mobilisation of new applications under the scheme
◎ The scheme has the following objectives;
• Facilitate collateral free working capital loans up to ₹10,000, of one year
tenure, with enhanced loans of ₹20,000 and ₹50,000 in the second and third
tranches respectively, on repayments of earlier loans.
• Incentivize regular repayment, through interest subsidy @ 7% per annum;
and
• Reward digital transactions, by way of cashback up to ₹1,200 per year.
 PM SVANidhi

👉👉 Street Vendors (Protection of Livelihood and Regulation of

Street Vending) Act, 2014:
◎ Section 2 (1) (l) “street vendor” means a person engaged in vending of articles,
goods, wares, food items or merchandise of everyday use or offering services to
the general public, in a street, lane, side walk, footpath, pavement, public park or
any other public place or private area, from a temporary built up structure or by
moving from place to place and includes hawker, peddler, squatter, etc.
 Warli Painting

Mashe Family have organized an exhibition of the Warli paintings in Delhi.

Jivya Soma Mashe is known as the father of Warli art since he popularized
the art form beyond the Sahyadri Mountains in Maharashtra.

👉👉 About
● Origin ➔ Till the Seventies, the art form remained
confined to the representation of joy and happiness
of the Warli Tribes’ lives.
● It was traditionally practiced by women.
 Warli Painting

◎ Method ➔
○ Layers of cow dung form the canvas. Dried canvas is painted in mud brown
to create a background.
○ Bamboo-stick paint brushes are used to carve the art lines. Rejuvenation:
Jivya Soma Mashe gave a new meaning to the art by capturing the constant
cyclical movement of life on the canvas.
○ These rudimentary paintings are made using a set of geometric shapes- a
circle, a triangle, and a square.
○ These shapes are considered to be symbolic of different elements found in
nature which are-
▪ The circle represents the sun and the moon.
▪ The triangle represents mountains and conical trees.
Warli Painting
 Warli Painting
▪ The square is a human invention depicting a sacred enclosure or a piece of
land.
▪ The central motif in every ritual painting is a square known as the “chauk”
or “chaukat”.
◎ Theme ➔
○ In Warli paintings, the central motif is depicted by scenes that portray hunting,
fishing and Farming.
○ Festivals and folk dances are also common scenes depicted through Warli art.
○ People and animals represented in Warli's paintings are depicted by two inverse
triangles joined at their tips.
○ The upper triangle represents the torso and the lower triangle represents the
pelvis. This precarious equilibrium is meant to symbolise the balance of the
universe.
 Warli Painting
○ Apart from ritualistic paintings, Warli paintings also represent various daily
activities village members perform.
◎ Social Importance ➔ Mashe’s Warli art records important events and transmits
local stories pictorially. The religious imagery shifted to narratives of tribal lives,
values and self-expression.
○ This art form has also helped tribals to reflect upon social injustices caused
by the systems of power imbalances
Warli Painting
 Anamalai Tiger Reserve
Recently, the forest officials in the Anamalai Tiger Reserve rescued a wild
elephant calf found separated from the herd.

👉👉 About
◎ Location ➔ It lies South of the Palakkad gap in the
Southern Western Ghats along with the Kerala and
Tamil Nadu border, surrounded by Parambikulam
Tiger Reserve on the East, Chinnar Wildlife Sanctuary
and Eravikulam National Park on the South Western
side.
◎ The reserve is also surrounded by Nenmara,
Vazhachal, Malayattur and Marayur reserved forests
 Anamalai Tiger Reserve

◎ Recognition ➔
○ Tiger Reserve: It was declared as a Tiger reserve in the year 2007.
◎ Flora ➔ The reserve is rich in wild relatives of cultivated species like turmeric
(Curcuma longa), pepper (Piper longum), cardamom, solaipuli, nutmeg, cinnamom,
etc.
 Anamalai Tiger Reserve

◎ Fauna ➔ The important mammals include Asiatic elephant, Sambar, Spotted deer,
Barking deer, Mouse deer, Gaur, Nilgiri tahr, Lion Tailed Macaque, Nilgiri langur,
and Common langur. Other
○ Common wild animals include wild pigs (Sus scrofa) and sloth bears (Melursus
ursinus).
◎ Wildlife Corridors ➔ There are several wildlife corridors which include Navamalai,
Punachi, Siluvaimedu, Sethumadai–Nenmara.
◎ Anthropological Reserve ➔ As it supports 6 indigenous people viz. Malasar, Malai
malasars, Kadars, Eravallars, Pulayars and Muduvars.
◎ Best Practices ➔
○ Innovative alert system for addressing human-wildlife conflict.
○ Anti-poaching strategy.
 Anamalai Tiger Reserve
○ Control over illegal ganja cultivation.
○ Smart patrolling using M-STrIPES protocol (Monitoring System for Tigers -
Intensive Protection and Ecological Status.)
 Show Cause Notice by Financial Intelligence Unit
India's Financial Intelligence Unit has issued show-cause notices to nine
offshore crypto-currency operators, including Binance, for not complying
with the Prevention of Money Laundering Act,2002 (PMLA).

👉👉 About
● VDA SPs (Virtual Digital Assets Service Providers)
are engaged in activities like exchange between
virtual digital assets and fiat currencies, transfer of
virtual digital assets, safekeeping or administration of
virtual digital assets or instruments enabling control
over virtual digital assets etc.
 Show Cause Notice by Financial Intelligence Unit

◎ They were brought under the ambit of the Anti Money Laundering/Counter
Financing of Terrorism (AML-CFT) framework under the provisions of the Prevention
of Money Laundering Act (PML) Act, 2002 in March 2023.
◎ They must be registered with FIU IND as a Reporting Entity and comply with the
set of obligations as mandated under the PML Act.
○ The obligation is activity-based and is not contingent on physical presence in
India.
○ The regulation casts reporting, record keeping, and other obligations on the
VDA SPs under the PML Act, including registration with the FIU IND.
◎ Till date, 31 VDA SPs have registered with FIU IND.
 Show Cause Notice by Financial Intelligence Unit

👉👉 About FIU IND:

◎ FIU-IND is an independent body reporting directly to the Economic Intelligence
Council (EIC) headed by the Finance Minister.
◎ Functions ➔ To receive cash/suspicious transaction reports, analyse them and, as
appropriate, disseminate valuable financial information to
intelligence/enforcement agencies and regulatory authorities.
○ Information Gathering: Serve as the primary point of contact for reports on
the purchase or sale of immovable property (IPRs), suspicious transaction
reports (STRs), cross-border wire transfer reports (CBWTRs), and cash
transaction reports (CTRs) from various reporting institutions.
○ Information Analysis: Analyze received information to uncover patterns of
transactions suggesting suspicion of money laundering and related crimes.
 Show Cause Notice by Financial Intelligence Unit
○ Information sharing: Sharing information with national intelligence/law
enforcement agencies, national regulatory authorities and foreign Financial
Intelligence Units.
○ Central Repository: Establish and maintain a national database on cash
transactions and suspicious transactions based on reports received from
reporting entities.
○ Coordination: Coordinate and strengthen collection and sharing of financial
intelligence through an effective national, regional and global network to
combat money laundering and related crimes.
○ Research and Analysis: Monitor and identify strategic key areas on money
laundering trends, typologies and developments.
◎ It is a multidisciplinary body with a sanctioned strength of 75 Personnel from
various government departments.
 Show Cause Notice by Financial Intelligence Unit

◎ The members are inducted from organizations including the Central Board of
Direct Taxes (CBDT), Central Board of Excise and Customs (CBEC), Reserve Bank of
India (RBI), Securities Exchange Board of India (SEBI), Department of Legal Affairs
and Intelligence agencies.
 Practice Question
Consider the following statements with reference to the Financial Intelligence Unit, India:

1. It is an independent body which reports directly to the Economic Intelligence Council

headed by the Finance secretary.
2. The unit can enquire the offenders on matters related to money laundering.

Which of the statements given above are incorrect?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
 Quick revision (True/False)
Question True / False

Domestic Systemically Important Banks (D-SIBs) -> Niti Aayog issued its
list of Domestic Systemically Important Banks (D-SIBs).
PM SVANidhi -> Implementing Agency - Small Industries Development
Bank of India (SIDBI).
Anamalai Tiger Reserve -> Arunachal Pradesh.

Warli Painting -> It was traditionally practiced by women.

 Quick revision (True/False)
Question True / False

Directorate General of Foreign Trade -> Ministry of Corporate Affairs.

Indian History Congress -> first session being held at Poona in 1935.

‘Zero Coupon Zero Principle’ instruments -> financial instruments that a

non-profit organisation may use to raise funds.
 Practice Question
Consider the following statements with reference to the National Tiger Conservation
Authority:

1. It is a statutory body constituted under the Environment Protection Act, of 1986.

2. The authority may issues binding directions in writing to any person, officer, or
authority for the protection of tiger reserves.

Which of the statements given above are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
 Practice Question
Consider the following statements with reference to the National Horticulture Board:

1. It is an Autonomous organization under the administrative control of the Ministry

of Agriculture and Farmers Welfare.
2. The Minister of Agriculture and Farmers Welfare is the ex-officio president of the
Board of Directors of the board.

Which of the statements given above are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2
 Practice Question
Consider the following statements with reference to Guru Gobind Singh:

1. He is known for the creation of the Khalsa Panth.

2. He proclaimed himself to be the last of the personal Gurus.
3. He is the author of the Dasam Granth.

How many of the statements given above are correct?

A. Only one
B. Only two
C. All three
D. None