Environment special Module

Gs paper is very analytical in nature. Therefore  scoring in this paper depends upon perspective. It is important for the students to inculcate pragmatic & policy based understanding of the issues of relevance . It is our endeavor to organize your efforts in this direction.

In last year Gs paper special weight age was given to Environment section .Question asked ,were conceptual  in nature .In this module apart from basic understanding of our environment , we have tried to address various issues like development & environment pollution, environment & human health ,conservation of environment ,resource management etc.  .Along with the environment special we are also releasing the sources used for the preparation of this module.

1. Environment special 1
2. Environment Special  2

Sample Note

The Complexities of UV-B and Amphibian Declines

·        The detrimental effects of UV-B on amphibians varies among species and between populations of the same species. These effects also vary among life stages within the same species.

1.     For example, in some species developing embryos die when exposed to low levels of ambient UV-B radiation whereas the embryos of other species show no overt effects of being exposed to high levels of UV-B radiation.

2.     To complicate things even further, in some species the larval stage is more vulnerable than the embryo stage and in other species the most detrimental effects of UV-B radiation occurs after metamorphosis.

·        Recent work suggests that amphibians have defense mechanisms to combat the harmful effects of UV-B radiation. Some species have an efficient mechanism of repairing UV-induced DNA damage at the molecular level.

1.     However, these repair mechanisms vary in efficiency among species and even among life history stages within the same species. Some species have dark pigmentation which may inhibit the penetration of harmful solar rays. Other species avoid UV-B radiation by staying out of sunlight or by being active at night.

·        The effects of UV-B radiation on amphibians are context dependent. For example, the amount of UV-B radiation an amphibian receives may be dependent upon weather conditions. In some regions, when rainfall is low and amphibians are in shallow water, they may receive higher doses of UV-B radiation than in years when rainfall is greater.

1.     The amount of dissolved organic material (DOM) may affect how much UV-B radiation penetrates a body of water. Murky water with good amounts of DOM may impede penetration of UV-B radiation.

UV-B radiation may interact….& more

For course details log on to .

http://www.smart-foundation.com/pcm.html

Gs Module 3-2012

Dear Aspirants

Gs paper is very analytical in nature. Therefore  scoring in this paper depends upon perspective. It is important for the students to inculcate pragmatic & policy based understanding of the issues of relevance . It is our endeavor to organize your efforts in this direction.

In this module we have continued with    synoptic review  along with drafted articles .That  will help students in following ways

1.     This will provide beforehand understanding of the articles

2.     It will make memorization & revision of material easy

3.     Now a days Prelims paper is analytical in nature
Synoptic review will help students to inculcate objective analytical content of the article in the  first reading   

4.     Point format presentation will  help students to develop mains answer writing skills 

Topics covered in Module 3

Sce Tech

Number of topics covered -15

• The Standard Model –conceptual  understanding of Matter &anti matter   
•  Note on Higgs Particle
• What CERN  is researching ?
• PAMELA Mission -Payload for Antimatter Matter Exploration and Light-nuclei Astrophysics(important )
•  Antiproton uses & Challenges...& MORE

National issue

Number of topics covered -25

·        “4.5 reservation for the Socially and Educationally Backward Classes (B.Cs)”Discuss

·        Note on EBT & Financial inclusion

·        Note on National Judicial commission

·        Interlinking of River………& More

India & World

Number of topics covered-16

·        Articles on Durban Conference

·        BCIM & regional connectivity

·        India-Middle east+Africa

·        India’s vote on Syria + India in UNSC …..& More  

Economic Issue

Number of topics covered -25

·        Mauritius a tax haven  -an analysis

·        Lessons from Vodafone: Azadi from Tax 

·        Note on Comparative Rating Index of Sovereigns (CRIS)

·        Note on MSF

·        Economic Glossary…………..& More  

For course details log on to .

http://www.smart-foundation.com/pcm.html

Gs Module 2-2012

Dear Aspirants

Gs paper is very analytical in nature. Therefore  scoring in this paper depends upon perspective. It is important for the students to inculcate pragmatic & policy based understanding of the issues of relevance . It is our endeavor to organize your efforts in this direction.

In this module we have continued with    synoptic review  along with drafted articles .That  will help students in following ways

1.     This will provide beforehand understanding of the articles

2.     It will make memorization & revision of material easy

3.     Now a days Prelims paper is analytical in nature
Synoptic review will help students to inculcate objective analytical content of the article in the  first reading   

4.     Point format presentation will  help students to develop mains answer writing sills

  

Sample of Synoptic review with drafted article.

Impact of implementation of BASEL 3 guidelines ON Indian Banks .

1.   Indian Banks  are well placed to meet higher capital requirements and indeed can strengthen their competitive position vis-à-vis international banks
2. The BIS has set the deadline for full implementation as 2019; the RBI would like Indian banks to comply by 2017. 

Analysis

1. total regulatory requirement of total capital + capital adequacy ratio
2. depress banks’ profitability-high yielding products + fee income
3.  the low prices of stocks in the Indian market
4.  the government’s shareholding in PSBs
5. Basel 3, with its enhanced capital requirements, is likely to improve the competitive advantage of banks in India and some other emerging markets.

Details 

Issue under scan

With the RBI flagging off the implementation of Basel 3 guidelines, Indian banks will have to plan for more capital in the years ahead. They are well placed to meet higher capital requirements and indeed can strengthen their competitive position vis-à-vis international banks — provided the government can deliver on its own responsibilities towards public sector banks. 

1. The RBI has set a more demanding schedule for Basel 3 implementation than the Bank for International Settlements. The BIS has set the deadline for full implementation as 2019; the RBI would like Indian banks to comply by 2017. 

Analysis 

· The total regulatory requirement of total capital (tier 1 and tier 2) in India is 9%, higher than the BIS norm of 8%. It will remain so under the new guidelines. Under Basel 3, two important changes happen.

1. One is that the quality of the 9% capital required is higher. At present, bank capital is split almost evenly between tier 1 and tier 2. Under Basel 3, tier 1 will constitute 7% out of the total 9%.
2. The other change is that banks will be required to have a capital conservation buffer, comprising common equity, of 2.5%. That takes the total capital requirement to 11.5%.
3. Also, between 2013 and 2017, banks will be expected to operate at a minimum tier 1 leverage ratio of 5%. 

• At the regulatory requirement of 9%, Indian banks were operating with a capital adequacy ratio of 13% in 2011 (under Basel 1). At a regulatory minimum of 11.5%, banks can be expected to be operating with capital in the range of 15-17%. This is the new bottom line where capital is concerned. Indian banks will have to make their plans for capital accordingly.

Are they equal to the task?

There are several reasons for optimism.

1. First, investor appetite is likely to be healthy because returns to primary issues of Indian banking stocks, including PSB stocks, over the years have been good.
2. Secondly, banks are seen as a play on the economy. In putting money in banks, investors are looking at an economy with a growth potential of 8-9% and bank loan growth upwards of 20%.
3.  Thirdly, return on assets in Indian banking is among the highest in the world today: it has been above 1% every year since the subprime crisis. While banking systems in the west are still reeling under the impact of the crisis, it is almost as if no crisis happened in Indian banking. 

Western bankers have expressed two big concerns about the higher capital requirements imposed by Basel 3.

•  One, it will depress banks’ profitability.
• Two, it will depress economic growth because some of the higher cost of capital will be passed on to borrowers.

Neither is particularly worrying in India. 

· Increases in capital have made little dent on banks’ net interest income (as a proportion of assets) over the years. Any impact in coming years will be small, if at all, because there are still numerous high yielding products that are still open to banks on both wholesale and retail sides: SMEs, vehicle loans, personal loans, credit cards, etc. 

·        Besides, PSBs have only recently woken up to the potential for fee income. Increases in fee income will sustain return on assets even if net interest income is dented.

1. For the same reasons, the impact on corporate borrowers and hence on economic growth will be negligible. (Even in western economies, BIS estimates the impact on growth to be a mere 0.04% per year). High growth and high returns will continue to make Indian banks attractive to investors in India and abroad.
2.  Some banks, such as HDFC Bank, are generating substantial surpluses and hence may not need a great deal of capital from the market.
3. Overall, capital is unlikely to be a constraint for Indian banks in the coming years.

There could be constraints arising from one or two other factors. 

• One is the low prices of stocks in the Indian market: banks may not find it attractive to issue capital at current prices. A possible answer is to raise small sums through rights issues in such periods and approach the broader market when things look up.
• A bigger constraint is the government’s shareholding in PSBs. As SBI finds to its cost, the government may not find it easy to contribute its share in order to retain its shareholding. It may not be willing to reduce its shareholding below 51% either. If majority government ownership is to stay, the annual budget must factor in annual requirements towards bank capital.

Basel 3 is likely to impact western and Indian banks in very different ways.

•  Banks in the west are raising their capital adequacy levels through deleveraging, that is, by shrinking their balance sheets. In India, in contrast, banks will be raising capital to finance growth.
• The fear with Basel 2 was that large international banks would increase their competitive advantage by using advanced risk management models that would lower their capital requirement. In contrast, Basel 3, with its enhanced capital requirements, is likely to improve the competitive advantage of banks in India and some other emerging markets.
  

 

Economy Special

Synoptic & Comprehensive coverage of 36 relevant themes

 

Policy special

Comprehensive coverage of latest development in the field of governance & policy making(Topics -38 )

 

Sce & Tech special

Comprehensive coverage of latest development in the field of science &tech  (Topic -16)

For details log on to    .http://www.smart-foundation.com/pcm.html