Daily Current Affairs for UPSC Civil Services Exam – 22 November 2020

In Today’s News:

  1. Kala Azar disease
  2. Prompt Corrective Action.

1. Kala Azar disease

News Summary

In a recent paper published in PLOS Neglected Tropical Disease, a team from Rajendra Memorial Research Institute of Medical Sciences has recently mentioned the success story of how Kala Azar was eliminated in Vaishali, Bihar by reducing the incidence of cases from 664 in 2014 to 163 in 2016 through Integrated Control Strategy.

Prelims GS – Health

Kala Azar:
  • Kala Azar is also known as Visceral leishmaniasis.
  • It is characterized by irregular bouts of fever, substantial weight loss, swelling of the spleen and liver, and anemia.
  • If the disease is not treated, the fatality rate in developing countries can be as high as 100% within 2 years.
  • The leishmaniases are a group of diseases caused by protozoan parasites from more than 20 Leishmania species.
  • These parasites are transmitted to humans by the bites of the infected female phlebotomine sandfly – a tiny – only 2–3 mm long – insect vector.
  • There are three main forms of leishmaniasis: cutaneous, visceral or kala-azar, and mucocutaneous.

Click here to know more about Kala Azar.

2. Prompt Corrective Action

News Summary

Lakshmi Vilas Bank was recently placed under moratorium by the Central Government on the recommendation of the RBI. RBI initially placed LVB in the Prompt Corrective Action(PCA) framework which restricts certain operations of the bank depending on the severity of financial stress as the financial position of LVB deteriorated.

Prelims GS – Economic Development

  • Prompt Corrective Action (or PCA) is intended to intervene early and take corrective measures in a timely manner, so as to restore the financial health of banks that are at risk by limiting deterioration in their health and preserving their capital levels.
  • PCA involves some restrictions on bank scope and expansion as not doing so would lead to excessive risks on the balance-sheets of these banks.
  • PCA framework was introduced by RBI in December 2002.
  • The Reserve Bank 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.
  • Leverage (Tier 1 Leverage Ratio) would be monitored additionally as part of the PCA framework.
  • Breach of any risk threshold would result in the invocation of PCA.
  • The PCA framework would apply without exception to all banks operating in India including small banks and foreign banks operating through branches or subsidiaries based on breach of risk thresholds of identified indicators.

Click here to know more about PCA in RBI scripts.



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