Banking Regulation: CRAR

RBI has revised the capital adequacy norms for commercial banks, small finance banks and payments banks.

»     RBI has now allowed banks to include quarterly profits earned in Common Equity Tier 1 (CET1) capital for the computation of the CRAR.

CRAR

»     Capital to Risk-Weighted Assets Ratio (CRAR): Also known as the Capital Adequacy Ratio (CAR), it is the primary metric used by the RBI to ensure a bank can absorb a reasonable amount of loss before it becomes insolvent.

»     Formula: CRAR = (Tier 1 Capital + Tier 2 Capital)/ (Risk Weighted Assets).

       o   Tier I capital is a bank’s highest quality capital because it is fully available to cover losses.

             §  E.g. CET1 Capital which includes common shares, stock surpluses, and retained earnings.

        o   Tier II capital (certain reserves and subordinated debt) has a lower loss absorption capacity than Tier I capital.

»     Features: Massive crocodilian, with males 3 to 6 meters in length and females 2.5 to 4 meters, weighing between 150 and 250 kg, with bulbous knob on the end of the snout.

»     Habitat and Distribution: Now only survive in India and Nepal (population ~800), they are primarily in the Ganges tributaries and Mahanadi.

        o  However, this recent sighting confirms their presence in the Brahmaputra river system as well.

»     Conservation Status:

         o  Critically Endangered under the IUCN Red List.

         o  Protected under Schedule I of India''s Wildlife (Protection) Act, 1972.

EFTA Agreement Highlights

Indian Commerce Secretary is on visit to Switzerland to advance the implementation of the India–EFTA Trade and Economic Partnership Agreement (TEPA).

About European Free Trade Association (EFTA) 

»     EFTA is an intergovernmental organisation established in 1960 through the Stockholm Convention.

»     Objective: Promotion of free trade and economic integration between its members.

»     Members: Iceland, Liechtenstein, Norway and Switzerland.

         o  Initial Founding members: Austria, Denmark, Norway, Portugal, Sweden, Switzerland and the United Kingdom.

»     India is the EFTA''s fifth-largest trading partner after the European Union, the United States, Britain and China.

»     Among EFTA, Switzerland is the largest trading partner of India, followed by Norway.

GCCs in India Cross 2,100

According to the latest NASSCOM-Zinnov report, India’s total GCCs are estimated at 2,117

»     These centres employ over 2.3 million professionals and generate revenues nearing $100 billion.

»     1,200+ GCCs in India have AI/ML capabilities and India has become second largest employer of enterprise AI talent globally.

GCCs

»     These are offshore units set up by companies to deliver a range of services for their parent organisations.

»     GCC’s areas of expertise include information technology, research and development, customer support, and other business operations.

»     Enablers for GCC Growth: Strong infrastructure, skilled workforce, innovation ecosystem, startup support, favourable policies (such as GENESIS, Startup India, Future Skills Prime, SEZ Reforms) etc.

»     Significance: Contribution to economic growth, employment creation, fosters innovation and R&D, adoption of global standards and boost local economies especially in Tier-II and Tier-III cities.

Challenges with GCCs

»     Executive Support: Lack of executive sponsorship and long-term management backing.

»     Operating Model: Fragmented processes, unclear ownership and weak GCC structure.

»     IT Services Overlap: Concerns exist over increasing overlap and competition between GCCs and traditional IT services companies.

         o   Others: Widening talent gaps, cyber threats, fiscal pressures etc. 

Genetic Neurodegenerative Disorder

Huntington''s patients seek rare disease status for the disease

About Huntington’s Disease

»     Nature: Huntington''s Disease is a hereditary neurodegenerative disorder causing gradual breakdown of brain nerve cells.

»     Affects: Movement, behaviour, cognition and personality.

»     Cause: Caused by genetic mutation inherited from a parent.

»     Types:

         o   Adult-Onset: Most common form, usually appears between 30–50 years.

         o   Juvenile: Rare form occurring in children/adolescents.

»     Major Symptoms: Uncontrolled movements, Cognitive decline, Behavioural and psychiatric problems and Progressive loss of motor functions.

Litchi – Bihar’s Famous Fruit

Centre forms Expert Panel to assess Litchi Stink Bug damage in Bihar.

»     Panel will be headed by the Director of the National Research Centre on Litchi, Muzaffarpur.

»     India is the world’s second-largest producer of litchi after China.

Litchi (Litchi chinensis)

»     It is a Juicy subtropical fruit known for sweet translucent edible flesh (aril). Botanically it belongs to the Sapindaceae family.

»     Agro climatic requirement: Moist subtropical climate, low elevation (up to 800 m), deep well-drained loamy soil rich in organic matter with pH 5.0-7.0.

»     Major Producing States: Bihar (largest), West Bengal, Assam, Punjab, Jharkhand, Tripura etc.

Musi River – Telangana

Telangana Government releases comprehensive guidelines for Phase-I of Musi Riverfront Development Project.

About Musi River

»     Origin:Ananthagiri hills, Rangareddy district (Telangana).

»     It is one of the major tributaries of Krishna River and flows into the Osmansagar and Himayatsagar reservoirs.

»     It consists of 2 rivulets - Esi and Musa which then converge into Musi River.

»     Importance: Major water sources for Hyderabad.

NIA – Counter Terrorism Agency

Supreme Court directed that at least one special court be established to deal with 10 to 15 trials in cases probed by the National Investigation Agency (NIA).

About National Investigation Agency (NIA)

»     Establishment: Under the National Investigation Agency Act, 2008, which was enacted in the aftermath of the 26/11 Mumbai terror attacks.

»     Objective: To investigate and prosecute offences (mentioned in schedule) that threatens India''s sovereignty, security, and integrity, friendly relations with foreign States, matters relating to international treaties etc

»     Headquarters: New Delhi with 2 Zonal offices at Guwahati & Jammu.

»     Headed by:Director-General (DG), who is a senior Indian Police Service (IPS) officer.

NTBs Costlier than Tariffs

UN Trade and Development (UNCTAD) in its ‘Invisible Barriers: The Costs of Non-Tariff Measures’ Report highlights that global trade is increasingly being shaped by regulatory restrictions, technical standards and geopolitical trade interventions.

Key Findings of the Report

»     Dominance of Non-Tariff Measures (NTMs): NTMs now impose higher export costs than tariffs for 88% of countries.

»     Double Burden on Developing Nations: of both rising tariffs and heavy NTM compliance costs.

»     Modern trade negotiations: have shifted away from simply lowering tariffs to focusing heavily on regulatory easing. E.g. EU-India Trade Deal.

»     LDCs lose approximately 10% of their exports to G20 markets as they often lack the financial resources and accredited testing facilities to navigate complex regulations

Recommendations of UNCTAD:

»     Enhance Transparency: It can reduce trade costs associated with non-tariff barriers by about 19 %.

»     Fostering Regulatory Cooperation and Alignment: Aligning domestic regulations with international standards can reduce NTM related trade costs by 15-30% without compromising safety.

»     Boosting South-South Trade Integration: Leveraging transparency and regulatory cooperation can strengthen trade among developing countries.

»     Others: Capacity-Building and Technical Support, Empowering LDCs in Trade Diplomacy etc.

»     Examples: Codex Alimentarius, International Plant Protection Convention (IPPC), World Organisation for Animal Health (WOAH) etc.

UN Trade and Development (UNCTAD)

»     HQ: Geneva, Switzerland.

»     Genesis: Established as a permanent intergovernmental body by the United Nations General Assembly in 1964.

»     It is a part of the UN Secretariat and United Nations Development Group.

»     Objective: To aid developing countries, particularly the least developed ones, and transitioning economies, in integrating effectively into the global economy.

»     Members: 195 nations (including India)

»     Key Reports: Trade & Development report, World Investment report, Least Developed Countries report etc

Strategic Location – Oman

Oman (Capital: Muscat)

»     Oman''s ports Sohar and Salalah are emerging as key lifelines for Indian exporters and GCC countries by helping bypass disruptions in the Strait of Hormuz.

Political Features:

»     It is located on the southeastern edge of the Arabian Peninsula.

»     Bordering Countries: It is bounded by Yemen (South-west), United Arab Emirates (North-west), and Saudi Arabia (West).

»     Maritime Boundaries: Arabian Sea (South and East) and Gulf of Oman (North).

Geographical Features:

»     Mountain Ranges: Hajar and Dhofar.

         o   Jebel Shams (Mountain of the Sun") is the highest peak.

»     Natural Resources: Fuel resources (petroleum and natural gas), minerals resources (copper, marble, asbestos, chromium, gypsum, and limestone), and fish.

»     Climate: Hot and dry in the interior and hot and humid along the coast.

Supreme Court Flags Drug Crisis

Geographical Location: Between two major illicit drug-producing regions - Golden Crescent (Iran, Afghanistan and Pakistan) and the Golden Triangle (Myanmar, Laos, and Thailand).

»     Porous Borders: Peddlers/smugglers are using technologies including drones for smuggling of narcotics across India-Pakistan border in Punjab State.

»     Easy availability of synthetic drugs: Like 3,4-Methylenedioxymethamphetamine (MDMA) or ecstasy, has manifested in the form of increasing drug addiction cases.

»     Economic, Social and Psychological Factors: Unemployment, family breakdown, depression, academic pressure, and urban isolation contribute to drug abuse.

»     Online Drug Trade: Technology such as use of dark web and encrypted platforms have enabled anonymous drug transactions.

Key measures taken to curb drug menace in India

»     Nasha Mukt Bharat Abhiyaan (NMBA): Launched in 2020 to make India drug-sensitised and resilient against substance abuse.

»     NDPS Act 1985: Make stringent provisions for the control and regulation of operations relating to narcotic drugs and psychotropic substances.

»     National Policy on NDPS 2012: To combat the drug menace in a holistic manner.

»     National Action Plan for Drug Demand Reduction (NAPDDR) (2018–2025): A multi-pronged strategy focusing on education, de-addiction, and rehabilitation of individuals and families.

»     International convention: India is a signatory to Single Convention on Narcotic Drugs, 1961, Convention on Psychotropic Substances, 1971 and Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances, 1988.

Supreme Court: Tyranny of Elected

Current Appointment Procedure of Election Commission of India (ECI)

»     Constitutional Provision: Article 324(2) provides for CEC and ECs to be appointed by the President, subject to any law made by Parliament.

»     Statutory Provision: The CEC and Other Election Commissioners Act, 2023 (replaced the 1991 Act), enacted in response to the Supreme Court’s 2023 Anoop Baranwal judgment (which had mandated a selection panel of PM, LoP, and CJI until Parliament legislated).

»     Process includes:

         o   Search Committee (headed by Cabinet Secretary) prepares a panel of 5 eligible candidates.

         o   Selection Committee recommends one name to the President.

         o   Selection Committee consists of Prime Minister (Chair), One Union Cabinet Minister & Leader of Opposition (or leader of largest opposition party in Lok Sabha).

»     Eligibility: Persons who hold/have held a post equivalent to Secretary to the Government of India.

Concerns Regarding the Appointment Procedure:

»     Executive Dominance: Government enjoys 2:1 majority in Selection Committee (PM + Cabinet Minister vs LoP).

»     Search Committee Bypass: Selection Committee can ignore the shortlisted panel and pick “any other person”.

»     Appointments despite vacancies: Appointments allowed even if Selection Committee has vacancies, enabling ruling party dominance.

»     Other: Bureaucratic Monopoly (Only Secretary-rank officers eligible); Status Downgrade (Salaries and conditions aligned with Cabinet Secretary, not Supreme Court judge level).

Suggestions on Composition of Selection Committee for Appointment of CEC & ECs

»     Tarkunde Committee (1975), Goswami Committee (1990) and Law Commission (255th Report, 2015): Recommended a three-member collegium consisting of the Prime Minister, LoP in the Lok Sabha, and the CJI.

»     National Commission to Review the Working of the Constitution (2002): recommended a panel comprising of Prime Minister, LoP in Lok Sabha, LoP in Rajya Sabha, Speaker of Lok Sabha & Deputy Chairman of Rajya Sabha.

»     2nd ARC Report (2007): A collegium consisting of the PM, Speaker of the Lok Sabha, LoP in the Lok Sabha, Law Minister and the Deputy Chairman of the Rajya Sabha.

Global Best Practices:

»     United Kingdom: The recruitment of electoral commissioners is overseen by the Speaker''s Committee on the Electoral Commission, which includes MPs.

»     The recommended candidates are then approved by the House of Commons and formally appointed by the monarch.

»     United States: The Commission is appointed by the President and must be confirmed by the Senate.

         o   Members are barred from holding other federal executive, legislative, or judicial positions at the time of their appointment.

TARA – Defence Innovation

DRDO and the Indian Air Force (IAF) successfully conducted the maiden flight trial of the Tactical Advanced Range Augmentation (TARA) weapon in Odisha.

TARA

»     It is India’s first indigenous glide weapon system that converts unguided warheads into precision-guided weapons.

»     Developed by: the Research Centre Imarat, Hyderabad, along with other DRDO laboratories.

»     Advantage: Its stand-off capability allows pilots to release bombs from outside hostile air defence coverage.

»     Once deployed, the bombs glide at high subsonic speeds (>650 km/h), with a range of more than 80 km, making interception difficult.

»     Other glide bomb in India: Gaurav (Long Range Glide Bomb - LRGB), SAAW (Smart Anti-Airfield Weapon), etc.

UN Habitat in News

UN-Habitat launched the Catalogue of Solutions 2026-2029

»     The Catalogue directly supports the UN-Habitat Strategic Plan 2026-2029, adopted in 2025, which prioritises adequate housing, land, and basic services for all.

About UN-Habitat

»     Genesis: In 1977, Habitat I provided the foundations of the United Nations Human Settlements Program (or UN-Habitat).

»     Mandate (by the UN General Assembly): to promote socially and environmentally sustainable towns and cities.

»     Headquarter: Nairobi, Kenya

»     Important documents:

         o  Vancouver Declaration on Human Settlements (Habitat I),

         o  Istanbul Declaration on Human Settlements (Habitat II),

         o  The New Urban Agenda ( Habitat III) in Quito, Ecuador.