09 Sep 2023: UPSC Exam Comprehensive News Analysis

09 September 2023 CNA
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TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
INTERNATIONAL RELATIONS
1. Modi, Biden welcome progress in defence ties
C. GS 3 Related
D. GS 4 Related
E. Editorials
INTERNATIONAL RELATIONS
1. Change the playbook, repatriate Indian children
F. Prelims Facts
1. Rajasthan Governor’s assent sought for social security Bills
2. RBI decides to discontinue I­CRR in a phased manner
G. Tidbits
1. Philippines condemns ‘illegal’ actions by Chinese boats in South China Sea
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions
FIP Magazine

Nothing here for today!!!

C. GS 3 Related

Nothing here for today!!!

2. RBI decides to discontinue I­CRR in a phased manner

  • The Cash Reserve Ratio (CRR) is the minimum amount of total deposits that banks must maintain as a cash reserve with the Reserve Bank of India. Banks are not allowed to use the CRR amount for lending or investment purposes.
  • Incremental Cash Reserve Ratio (I-CRR) was introduced by the RBI to absorb the excess liquidity generated by factors such as the return of Rs 2,000 notes to the banking system, RBI’s surplus transfer to the government, pick up in government spending and capital inflows.
  • Banks were asked to maintain an I-CRR of 10 per cent on the increase in their net demand and time liabilities (NDTL) between May 19, 2023, and July 28, 2023. 
  • The Reserve Bank of India (RBI) has now made the decision to gradually discontinue the Incremental Cash Reserve Ratio (I-CRR) in a phased manner to ensure stability and prevent shocks in the system liquidity. 

G. Tidbits

1. Philippines condemns ‘illegal’ actions by Chinese boats in South China Sea

  • Second Thomas Shoal is approximately 200 km away from the western Philippine island of Palawan. China’s closest major landmass to the shoal is Hainan Island.
  • It is an atoll in the Spratly Islands of the disputed South China Sea.  

Read more on the South China Sea Dispute.

H. UPSC Prelims Practice Questions

Q1. Consider the following statements regarding trade disputes in the World Trade 
Organization (WTO):
  1. Trade disputes between WTO members are resolved by the Dispute Settlement Body (DSB).
  2. The DSB consists of representatives from WTO member countries.
  3. WTO dispute settlement decisions are legally binding, and non-compliance can result in sanctions.

How many of the statements given above are correct?

  1. Only one
  2. Only two
  3. All three
  4. None
CHECK ANSWERS:-

Answer: c

Explanation: The Dispute Settlement Body (DSB) resolves trade disputes, consists of representatives from member countries, and its decisions are legally binding with possible sanctions for non-compliance.

Q2. Which Indian state became the first to provide social security guarantees through
the Minimum Guaranteed Income Bill in 2023?
  1. Maharashtra
  2. Rajasthan
  3. Kerala
  4. Gujarat
CHECK ANSWERS:-

Answer: b

Explanation: Rajasthan became the first state in India to provide social security guarantees through the Rajasthan Minimum Guaranteed Income Bill, 2023.

Q3. Consider the following statements regarding Incremental Cash Reserve Ratio (I-CRR):
  1. It is the minimum amount of total deposits that banks have to keep with the central bank.
  2. I-CRR is an additional cash balance that the RBI can ask banks to maintain over and above the cash reserve ratio for a specific period.
  3. It is a temporary measure aimed at absorbing surplus liquidity.

How many of the statements given above are incorrect?

  1. Only one
  2. Only two
  3. All three
  4. None
CHECK ANSWERS:-

Answer: a

Explanation: It is an additional cash balance that the RBI can ask banks to maintain over and above the cash reserve ratio to absorb surplus liquidity caused by various factors. Statement 1 is CRR.

Q4. Consider the following countries:
  1. China
  2. Vietnam
  3. Philippines
  4. Malaysia
  5. Indonesia
  6. Brunei

How many of the above-mentioned countries are claimants to the Spratly Islands in the South China Sea?

  1. Only two
  2. Only three
  3. Only four
  4. Only five
CHECK ANSWERS:-

Answer: d

Explanation: The Spratly Islands are a disputed territory claimed by multiple countries, including China, Vietnam, Brunei, the Philippines, Malaysia, and Taiwan. Indonesia is not a claimant.

Q5. Consider the following pairs:
S.No. Generations of Biofuels  Characteristics
1. First Generation Utilizes Microorganisms/Algae for production.
2. Second Generation Produced from food crops like corn.
3. Third Generation Produced from inedible parts of food crops.

How many pairs given above are correctly matched?

  1. Only one pair
  2. Only two pairs
  3. All three pairs
  4. None of the pairs
CHECK ANSWERS:-

Answer: d

Explanation: 1st Generation: Food crops like corn, sugarcane, etc. 2nd Generation: Non-food crops like Jatropha or food crops which are not edible like straw, husk, skins, wood chips, etc. 3rd Generation: Microorganisms like algae are used.

I. UPSC Mains Practice Questions

  1. The recent improvement seen in Indo-USA relations is a win-win situation for both nations. Elaborate. (10 marks, 150 words)​ (GS-2; International Relations)
  2. There has been a rise in cases of revoking parental custody of Indian couples in foreign nations. Enumerate the issues associated with this and list some possible solutions. (15 marks, 250 words)​ (GS-2; International Relations )

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