25 Jul 2020: UPSC Exam Comprehensive News Analysis

25 July 2020 CNA:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
INTERNATIONAL RELATIONS
1. India, Sri Lanka seek to reset ties in the time of polls and pandemic
C. GS 3 Related
ENVIRONMENT AND ECOLOGY
1. Nearly 28 lakh people affected by Assam floods, toll rises to 93
DEFENCE
1. India invites Israeli defence companies to strengthen ties
ECONOMY
1. Banks’ gross NPAs may climb to as much as 14.7% by March: RBI
D. GS 4 Related
E. Editorials
DEFENCE
1. Arms and the women
POLITY
1. Judicial indiscipline: On Rajasthan political crisis
F. Prelims Facts
1. Hagia Sophia Grand Mosque in Istanbul
G. Tidbits
1. China asks U.S. to shut Chengdu consulate
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

Category: DEFENCE

1. India invites Israeli defence companies to strengthen ties

Context:

India has invited greater participation from Israeli defence companies under the new liberalised foreign direct investment (FDI) regime in defence manufacturing.

Details:

  • In May 2020, the government increased the limit for FDI in defence through the automatic route from 49% to 74%. Read more.
  • Indian Armed Forces are undertaking a series of emergency defence purchases, including from Israel, amid ongoing tensions with China. Read more.
    • The decision has been taken by the Army to order another batch of 12 launchers and around 250 missiles of Spike Anti-Tank Guided Missiles (ATGM) and additional Heron Undermanned Aerial Vehicles (UAV), among others, from Israel through the emergency procurement route.

Category: ECONOMY

1. Banks’ gross NPAs may climb to as much as 14.7% by March: RBI

Context:

Reserve Bank of India’s observation on gross non-performing assets (GNPA) ratio of scheduled commercial banks (SCBs).

Details:

  • RBI has observed that the GNPA ratio of SCBs may escalate to 14.7% under a very severely stressed scenario, which assumes hypothetically that GDP would suffer a contraction of 8.9% in 2020-21.
  • Earlier in its Financial Stability Report, RBI had predicted that the GNPA ratio of all SCBs may increase to 12.5% by March 2021.
  • On the assessment of systemic risk, the RBI said in its report that the Indian financial system remained stable, notwithstanding the significant downside risks to economic prospects.

Read more about Non-Performing Assets.

Gross Non-Performing Assets:

  • Gross NPA is the summation of all loan assets that are classified as NPA as per RBI guidelines.
  • Gross NPA consists of Substandard Assets, Doubtful Assets and Loss Assets.

Net Non-Performing Asset:

  • For precautions and to meet unforeseen losses, banks are required to make provisions as per RBI guidelines. RBI issues guidelines on Income Recognition, Asset Classification and Provisioning.
  • From the gross NPA, provisions provided are netted to arrive at Net NPA.
  • Net non-performing assets = Gross NPAs – Provisions.

Impact of High NPAs on Banks:

  • NPA is an important financial component that is considered while analyzing a bank. It indicates the asset quality of banks.
  • Banks with high NPAs have lesser funds to advance because of the higher provisioning that they have to provide.
  • Lesser lending would mean lesser interest income, impacting the profitability of the banks.
  • Banks would have to face difficulty maintaining capital adequacy ratio.

G. Tidbits

1. China asks U.S. to shut Chengdu consulate

  • China has ordered the U.S. consulate in the South-western city of Chengdu to close.
  • The order comes in retaliation after Washington ordered Beijing to close its diplomatic mission in Houston.
  • The U.S. has an embassy in Beijing as well as five consulates in mainland China, plus one in Hong Kong.
  • The Chengdu consulate, established in 1985, covers the troublesome region of Tibet and has been at the centre of past controversy.

H. UPSC Prelims Practice Questions

Q1. Consider the following statements with respect to Hagia Sophia Grand Mosque:
  1. It is an example of Byzantine architecture.
  2. It was built as the Christian cathedral of Constantinople.
  3. It was converted into a mosque by Mustafa Kemal Ataturk, the founder of the Republic of Turkey.

Which of the given statement/s is/are correct?

  1. 1 only
  2. 1 and 3 only
  3. 1 and 2 only
  4. 1, 2 and 3
CHECK ANSWERS:-

Answer: c

Explanation:

  • Hagia Sophia is the former Greek Orthodox Christian patriarchal cathedral, later an Ottoman imperial mosque and then a museum located in Istanbul, Turkey.
  • It was built in 537 AD during the reign of Justinian I, the Eastern Roman emperor.
  • The Byzantine architecture monument is famous for its large dome.
  • In 1453, when Constantinople fell to Ottoman forces, it was turned into a mosque.
  • In 1934, Mustafa Kemal Ataturk, the founder of the Republic of Turkey, converted the mosque into a museum in an attempt to make the country more secular.
  • The Council of State, the highest administrative court in Turkey, unanimously cancelled the 1934 decision by modern Turkey’s founder to turn it into a museum, saying it was registered as a mosque in its property deeds. Mr. Erdogan, Turkey’s President, then swiftly ordered the building to reopen for Muslim worship.
Q2. Which among the following treaties established the modern border between Turkey 
and Greece?
  1. Treaty of Lausanne
  2. Treaty of Alexandropol
  3. Treaty of Sèvres
  4. Treaty of Ankara
CHECK ANSWERS:-

Answer: a

Explanation:

Treaty of Lausanne ended the conflict between the Ottoman Empire and the Allies and established the modern border between Turkey and Greece.

Q3. Which of the following are correctly matched?
  1. Kuchipudi – Tamil Nadu
  2. Sattriya – Arunachal Pradesh
  3. Kathakali – Kerala
  4. Odisha – Odissi

Choose the correct option:

  1. 1, 2 and 3 only
  2. 3 and 4 only
  3. 2, 3 and 4 only
  4. 1, 3 and 4 only
CHECK ANSWERS:-

Answer: b

Explanation:

Kuchipudi is a classical dance form from Andhra Pradesh and Sattriya from Assam.

Q4. Consider the following statements with respect to the National Human Rights 
Commission (NHRC):
  1. It is a constitutional body established in 1993.
  2. President appoints the Chairman and members of NHRC on the recommendation of a high-powered committee headed by Prime Minister.
  3. It has the powers of a Civil Court.

Which of the given statement/s is/are correct?

  1. 1 and 2 only
  2. 1 and 3 only
  3. 1, 2 and 3
  4. 2 and 3 only
CHECK ANSWERS:-

Answer: d

Explanation:

  • NHRC of India is an independent statutory body established on 12 October 1993 as per the provisions of Protection of Human Rights Act, 1993.
  • President appoints the Chairman and members of NHRC on the recommendation of a high-powered committee headed by Prime Minister.
  • It has the powers of a Civil Court.

I. UPSC Mains Practice Questions

  1. The Government might have sanctioned permanent commission for women officers in the Army, but it must achieve gender equality by establishing professional standards and adhering to them without any bias. Analyze. (10 Marks, 150 Words) (GS Paper 3, Defence)
  2. The anti-defection law has proved to be ineffective and needs a major overhaul. Discuss.  (15 Marks, 250 Words) (GS Paper 2, Polity)

Read the previous CNA here.

25 July 2020 CNA:- Download PDF Here

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