Daily Current Affairs for UPSC Civil Services Exam – 12 July 2020

Daily Current Affairs for UPSC Civil Services Exam – 12 July 2020

In Today’s News:

  1. RBI Governor warns of higher NPAs, bank capital erosion.
  2. Assam Keelback spotted for the first time in 129 years.

1. RBI Governor warns of higher NPAs, bank capital erosion

News Summary

RBI Governor Shri. Shaktikanta Das warns that due to the COVID-19 pandemic, there is a serious impact on the economy. He also warns that there is a chance of higher NPAs and it may result in capital erosion in banks. He added that the recapitalization plan in Public Sector Banks and Private banks is urgently needed to ensure financial stability.

Prelims GS – Economic Development

NPA:
  • Non-Performing Assets are those loans or advances that have defaulted or in arrears.
  • The loans for which the Principal or interest amount has not been paid for more than 90 days are considered to be the Non-Performing Assets.
  • Before a loan becomes NPA, it first enters into SMA(Special Mention Account) stage. It is an early sign that loan is going to default. There are three stages in SMA:
    • SMA-0: When the loan is not paid from 0-30 days.
    • SMA-1: When the loan is not paid from 31-60 days.
    • SMA-2: When the loan is not paid from 61-90 days.
  • Banks should be cautious during the SMA stage and prevent the loan from becoming NPA.
  • NPAs are classified as:
    • Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months.
    • Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months.
    • Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.”

2. Assam Keelback spotted for the first time in 129 years

News Summary

A team from the Wildlife Institute of India, Dehradun spotted Assam Keelback for the first time in 129 years. The female snake was spotted in the Poba Reserve Forest, Assam.

Prelims GS – Environment

Assam Keelback:
  • Assam Keelback is also known as Hebius pealii. 
  • It belongs to Genus Herpetoreas. So, it is now considered as Herpetoreas Pealii.
  • This snake was named after a British tea planter named Edward Peal who collected this snake from Upper Assam 129 years ago.
  • Assam Keelback is known to inhabit Sivasagar in Upper Assam and Poba in the Assam-Arunachal border.
  • IUCN: Data deficient

 

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