Daily Prelims Newsletter(UPSC)|05 JUN 2021 | RaghukulCS

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Daily Prelims Newsletter(UPSC)|05 JUN 2021 | RaghukulCS

Daily Prelims Newsletter For UPSC
| RaghukulCS

05 June 2021-Saturday

Table Of Contents

Environment.

  • Blue-finned Mahseer 

Science and Technology

  • Sattelite Internet 

Economy 

  • PCA Framework 
  • Open Market Operations

Indices and Reports 

  • World Employment and Social Outlook Trends Report, 2021 

Environment

Blue-finned Mahseer

Why in News?

Recently, IUCN has moved Blue-finned Mahseer from Endangered to the Least Concern status on its Red List.

About Blue Finned Mahseer:

  • It belongs to the genus Tor, of which there are many subspecies found in India and in other countries in South Asia.
  • Habitat:Mainly found in the Mula-Mutha river east of Pune. Also found in other rivers of the Deccan Plateau.
  • It is amigratory species, moving upstream during rains. It prefers to stay in clean, fast flowing and well oxygenated waters.
  • Threats:
    • Habitat manipulation,
    • Over harvesting,
    • Competition from other fish species.
  • Freshwater Ecosystem Indicator:
  • It is extremelysensitive to dissolved oxygen levels, water temperature and sudden climatic changes thus is considered as Freshwater Ecosystem Indicator. It cannot bear pollution.

Science and Technology

Sattelite Internet

Why in News?

According to an estimate, 1250 satellites will be launched every year in this decade, with 70% of them for commercial purposes under projects like Starlink, Oneweb, Kuiper, etc.

About Present Space Internet Systems:

  • Most of the present space-based Internet services use satellites in geostationary
    • Geostationary orbit is located at a height of 35,786 km over the Earth’s surface, directly above the Equator.
    • Satellites in this orbit complete one revolution of the Earth in the same time that the earth rotates once on its axis.
    • Thus, from a point on earth the satellite in a geostationary orbit appears stationary.
  • Advantage: The signals from one such satellite can cover roughly a third of the planet, hence three to four satellites would be enough to cover the entire Earth.
  • Disadvantage: The transmission from a satellite in geostationary orbit has a very high latency due to longer distance from earth.
    • Latency is a measure of delay in networke., it measures the time taken for data to get to its destination across the network.

About Space Internet with Low Earth Orbit:

  • The LEO extends to 2,000 km above the surface of Earth.
  • Due to presence of satellite at a lower height from Earth’s surface, latency reduces to low values.
  • The signals from satellites in space can overcome geographical obstacles faced by fibre-optic cables or wireless networks.
  • However, large number of satellites required can lead to:
    • Increased Space Debris
    • Difficulty in Space Studies as these can alter incoming lights from distant objects.

Related Information: Starlink Project:

  • The Starlink network is one of the several ongoing efforts to beam data signals from space.
  • Under the project, the company intends to set up a constellation of nearly 12,000 satellites in Low Earth Orbit.
  • The firm aims to provide reliable space-based internet services at low cost to the world.

Economy

PCA Framework

Why in News?

GoI recently indicated that banks under prompt corrective action (PCA) framework or the weaker banks would be kept out of privatisation drive as it would be difficult to find buyers for them.

About PCA (Prompt and Corrective Action) Framework:

  • PCA norms allow RBI to place certain restrictionslike halting branch expansion and stopping dividend payment to the shareholders.
  • RBI can even cap a bank’s lending limit and exposure to one entity or sector.
  • Other corrective action that can be imposed on banks include:
    • special audit,
    • restructuring operations, and
    • activation of recovery plan.
    • The RBI can also supersede the bank’s board, under PCA.
  • The PCA is invoked when certain prescribedrisk thresholds are breached based on, asset quality, profitability, capital, etc.
  • Another threshold, is maximum tolerance limit, which sets net NPA at over 12% and negative return on assets for four consecutive years.

Banks usual course of action post PCA categorisation:

  • Launch special drives to reduce the stock of NPAs
  • Contain generation of fresh NPAs.
  • Banks are alsonot allowed to enter into new lines of business.
  • RBI also imposes restrictions on the bank on borrowings from interbank market.

Open Market Operations

Why in News?

RBI Governor, Shaktikant Das, said that RBI has undertaken regular OMOs and injected an additional liquidity to the tune of Rs 36,545 crore in this fiscal (up to May 31).

About the process:

  • Simultaneous purchase and sale of G-Secs under OMOs, involves purchasing G-Sec of longer maturities and selling equal amounts of G-Sec of shorter maturities.

About Open Market Operations:

  • OMO refers to buying and selling of bonds issued by the Government in the open market.
  • It is one of the quantitative tools that RBI uses to smoothen the liquidity conditions.

Impact on Money Supply:

  • When RBI buys a G-Sec in the open market, it pays for it thereby increasing the money supply in the economy.
  • Types of OMOs:Selling of a G-Sec by RBI (to private individuals or institutions) leads to reduction the money supply.
    1. Outright OMOs: These are permanent in nature i.e., if RBI buys or sells these securities, it is without any promise to sell or buy them backat a later date.
    2. Repo:Under these operations when RBI buys or sells the security, the agreement also has specification about date and price of resale or repurchase of this security. This is called arepurchase agreement or repo.

    The interest rate at which the money is lent in such a way is called the repo rate.

    Indices and Reports

    World Employment and Social Outlook Trends Report, 2021

    Why in News?

    Recently, the International Labour Organisation (ILO) released ‘World Employment and Social Outlook: Trends (WESO) Report 2021’.

    Key Points in the report:

    • Covid has pushed over 100 million more workers into poverty worldwide.
    • The pandemic has contributed to risinginequalities in the labour market, lowskilled workers, women, young peopleand migrants are among the most affected.
    • Loss of Working Hours
    • Women have suffered disproportionate job losses while their unpaid working time increased.

    About International Labour Organisation (ILO)

    • Created in 1919, after theTreaty of Versailles(which ended World War I).
    • It reflects the belief that universal and eternal peace can be accomplished only when based on social justice.
    • It became one of thespecialized agency of the United Nations in 1946.
    • It is a tripartite organization, the only one of its kind bringing together:
      • Representatives of governments,
      • Employers and
      • Workers in its executive bodies.
    • India is one of thefounding member of the ILO with a total 187 member States.
    • In 2020, India assumed the Chairmanship of the Governing Body of ILO.
    • Headquartered in Geneva,
    • In 1969, ILO received the Nobel Peace Prize forits contributions in improving fraternity and peace among nations, pursuing decent work and justice for workers, etc.

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