Daily Current Affairs for UPSC Civil Services Exam – 03 February 2021

In Today’s News:

  1. Prompt Corrective Action(PCA)
  2. Namami Gange Program.

1. Prompt Corrective Action (PCA)

News Summary

The Finance Ministry is expecting the Indian Overseas Bank, Central Bank of India, and UCO Bank to be out of the PCA framework soon in two months’ time.

Prelims GS – Economic Development

  • PCA refers to Prompt Corrective Action.
  • The Reserve Bank of India has specified certain regulatory trigger points, as a part of the Prompt Corrective Action (PCA) framework, in terms of three parameters,
    • Capital to Risk-weighted Assets Ratio (CRAR),
    • net Non-Performing Assets (NPA) and
    • Return on Assets (RoA) for initiation of certain structured and discretionary actions in respect of banks hitting such trigger points.
  • The PCA framework is applicable only to commercial banks and not extended to co-operative banks, non-banking financial companies (NBFCs), and FMIs.

Click here to view the official document of RBI on the PCA framework.

Mini Insights

Mains GS3 – Economic Development

PCA Framework and its purpose:
  • Reserve Bank of India (RBI) issues Prompt Corrective Action (PCA) framework to maintain the sound financial health of banks.
  • It facilitates banks in breach of risk thresholds for identified areas of monitoring, viz., capital, asset quality (which is tracked in terms of the net Non-Performing Assets ratio), and profitability, to take corrective measures in a timely manner, in order to restore their financial health.
  • Thus, it is intended to encourage banks to
    • avoid certain riskier activities,
    • improve operational efficiency and
    • focus on conserving capital to strengthen them.
  • The framework is not intended to constrain the performance of normal operations of the banks for the general public.

Courtesy: PIB Lok Sabha reply

2. Namami Gange Program

News Summary

National Mission for Clean Ganga (NMCG), Ministry of Jal Shakti, and India Water Foundation (IWF) celebrated World Wetland Day 2021, to raise awareness about the conservation and rejuvenation of Wetlands. Shri Gajendra Singh Shekhawat, Hon’ble Union Minister of Jal Shakti said, “Namami Gange is the first of its kind program where Wetland Conservation is integrated with Basin Management Plan.”

Prelims GS – Environment

Namami Gange Program:
  • Namami Gange Programme’, is an Integrated Conservation Mission, approved as ‘Flagship Programme’ by the Union Government in June 2014 with a budget outlay of Rs.20,000 Crore to accomplish the twin objectives of effective abatement of pollution, conservation, and rejuvenation of National River Ganga.
  • Pillars of Namami Gange Program:
    • Sewerage Treatment Infrastructure
    • River-Front Development
    • River-Surface Cleaning
    • Bio-Diversity
    • Afforestation
    • Public Awareness
    • Industrial Effluent Monitoring
    • Ganga Gram
  • Under the Namami Gange program, Central Pollution Control Board (CPCB) is carrying out the water quality monitoring of river Ganga.

Click here to know more about Namami Gange Program on the official website.



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