TNPSC CURRENT AFFAIRS – 19.08.2024

1. ECONOMY

FM URGES BANKS TO RAISE SMALL SUMS FROM MANY SAVERS

• Concern Over Deposit Growth: The Finance Minister highlighted the slower growth in bank deposits, which is not keeping pace with the rise in lending. This discrepancy could pose risks to the liquidity management of banks.
• Old-Fashioned Approach: Sitharaman advocated a return to an ‘oldfashioned’ method of mobilizing deposits, which involves raising small sums from a large number of savers. This approach, she suggested, would be more stable and less risky than relying heavily on bulk corporate deposits.
• Call to Action: The Minister plans to meet with bank chiefs to push them towards focusing on collecting small deposits. She emphasized the need for banks to pay more attention to their primary function of deposit collection and lending.
• RBI’s Stance: RBI Governor Shaktikanta Das also flagged this issue, noting the growing gap between deposit and credit growth. He warned that if this trend continues, it could lead to structural liquidity management problems in the banking sector.
• Current Challenges: The article mentioned that the share of CASA (Current Account Savings Account) deposits, which are more stable and cheaper for banks, has decreased from 43% to 39% over the past year. This indicates a need for banks to refocus on attracting more stable deposits rather than relying on large, often volatile, corporate deposits.

2. POLITY

MINISTER REINTRODUCES DIAMOND IMPREST LICENCE

• Union Minister Piyush Goyal announced the reintroduction of the Diamond Imprest Licence at the India International Jewellery Show 2024.
• This policy, long advocated by the Gem & Jewellery Export Promotion Council (GJEPC), allows Indian diamond exporters to import rough diamonds up to 5% of their average export turnover from the preceding three years.
• What is the Diamond Imprest Licence?
• The Diamond Imprest Licence is a policy measure that allows Indian diamond exporters to import rough diamonds up to a specified percentage of their average export turnover from the preceding three years.
• Under the newly reintroduced policy, exporters with a certain export turnover threshold will be able to import diamonds up to 5% of their average export turnover. Previously, this threshold was set at 10%.
• Level-Playing Field: The policy provides MSME diamond exporters with a fair competitive environment, helping them compete with larger firms and curbing the outflow of investment to diamond mining destinations abroad.
• Employment Boost: By encouraging domestic diamond processing and assorting, the policy is expected to create more jobs in India’s diamond industry.
• Support During Recession: The move encourages greater value addition in exports, helping Indian exporters mitigate the impact of economic slowdowns in developed countries

3. SCIENCE AND TECHNOLOGY

HIDDEN DANGERS OF IRRATIONAL USE OF ANTIBIOTICS ON MICROBIOME

• Antimicrobial Resistance (AMR): Overuse and misuse of antibiotics drive the development of resistant bacteria.
• Microbiome Disruption: Antibiotics disrupt the balance of the microbiome, leading to dysbiosis.
• Health Conditions: Dysbiosis can cause inflammatory bowel disease, irritable bowel syndrome, and impair immune function.
• Dysbiosis affects gut-organ axes, influencing conditions like anxiety, depression, non-alcoholic fatty liver disease, acne, eczema, psoriasis, obesity, diabetes, and metabolic syndrome.
• Colonisation Resistance: Antibiotic use reduces colonisation resistance, increasing the risk of infections by harmful bacteria.
• Impact on Other Microbiomes: Skin microbiome: Disruption can lead to skin conditions.
• Respiratory tract microbiome: Disruption can lead to respiratory conditions like asthma and chronic obstructive pulmonary disease.
• Genitourinary microbiome: Disruption can lead to bacterial vaginosis and urinary tract infections.
• SOLUTION
• Judicious Use of Antibiotics: Use antibiotics only when necessary and prescribed by a healthcare professional.
• Alternative Practices: Improve hygiene practices to reduce the need for antibiotics.
• Promote vaccination to prevent infections.
• Use bacteriophages as an alternative to antibiotics.
• Microbiome Preservation: Develop and use narrow-spectrum antibiotics to minimize microbiome disruption.
• Research and promote probiotics and prebiotics to support microbiome health.
• Public Awareness and Education: Educate the public and healthcare providers about the risks of antibiotic misuse and the importance of preserving the microbiome.
• Policy and Regulation: Implement stricter regulations on antibiotic use in humans, animals, and agriculture.
• Encourage the development of new antibiotics and alternative treatments through research funding and incentives

4. ENVIRONMENT

RECORD TEMPERATURE IN GREAT BARRIER REEF SEEN IN LAST DECADE

• Reasons for Warming Water Temperatures:
• Global Warming: Greenhouse Gas Emissions: The increase in greenhouse gases (CO2, methane, etc.) from human activities (burning fossil fuels, deforestation, industrial processes) has led to global warming.
• Ocean Heat Uptake: Oceans absorb about 90% of the excess heat generated by greenhouse gas emissions, leading to increased sea surface temperatures.
• Climate Change: El Niño and La Niña Events: These natural climate phenomena can cause significant variations in sea surface temperatures, contributing to warming periods.
• Anthropogenic Factors: Human activities have exacerbated natural climate variability, leading to more frequent and intense warming events.
• Local Factors: Pollution: Runoff from agricultural and urban areas can increase nutrient levels in coastal waters, leading to algal blooms that can affect water temperatures.
• Overfishing: Disruption of marine ecosystems can alter the balance of species and affect the thermal properties of the water.

5. SCIENCE AND TECHNOLOGY

GLACIAL LAKES MULTIPLY IN HIMACHAL AND TIBET, POSES THREAT TO LIVES AND INFRA DOWNSTREAM

• Increase in Glacial Lakes:
• The number of glacial lakes in the Satluj river catchment area has almost doubled from 562 in 2019 to 1,048 in 2023.
• This data is based on satellite analysis conducted by the Centre on Climate Change of Himachal Pradesh Council for Science TechnologyEnvironment (HIMCOSTE).
• Distribution of Lakes: Of the 1,048 lakes mapped in 2023:
• 900 are small (less than five hectares).
• 89 have an area between five and ten hectares.
• 59 are larger than ten hectares.
• Geographical Insights: The Upper Satluj basin in the Tibetan Himalayan Region has a higher number of lakes compared to the Spiti and Lower Satluj basins.
• The formation of small lakes is more prevalent in the upper regions, indicating a greater impact of climate change at higher altitudes.
• Climate Change Impact: The rapid melting of glaciers and reduced snowfall during winters are contributing to the rise in glacial lakes.
• The average temperature in high-altitude areas is rising faster than in lower areas.
• Downstream Threats: The increase in glacial lakes poses a potential threat to human life and infrastructure downstream if these lakes burst.
• Factors such as the volume of water, velocity, and outburst spread can determine the extent of the threat

ONE LINER

1. RBI holds repo rate at 6.5% for ninth time in row
2. Clean Plant Programme (CPP) an initiative proposed by Ministry of Agriculture to provide virus- free, high – quality planting material to farmers.