05 Mar, 2020

  • Non proliferation of Nuclear weapons treaty - NPT - IR
  • Ban on Cryptocurrencies Revoked - Economy
  • Merger of Banks - Analysis - Economy
  • WTO - Appellate Body - Mains Question - Economy
  • Afghan deal - IR
  • Practice Questions

Prelims Quiz

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    Description

    Public sector bank mergers get approval

    The government has announced a mega amalgamation plan of public sector banks. It merged ten public sector banks into four larger entities, alongside board level governance reforms.

    • This step is aimed at improving their financial health and enhancing their lending capacity to support growth.
    • The merger announcement was followed by an equity infusion move of Rs 55,250 crore in these banks to enable them to grow their loan book.
    • This is third merger announced by the government.
    • With these series of mergers, the number of state-owned banks is down to 12 from 27.

    Which banks have been merged?

     

    SC order on cryptocurrency will offer only temporary relief

    On 4th March 2020, Supreme Court set aside a ban by the Reserve Bank of India (RBI) on banks and financial institutions from dealing with virtual currency holders and exchanges.

    • The court held that the ban did not pass the “proportionality” test. The test of proportionality of any action by the government, the court held, must pass the test of Article 19(1)(g), which states that all citizens of the country will have the right to practise any profession, or carry on any occupation or trade and business.
    • In a circular in 2018, the RBI had banned banks from dealing with virtual currency exchanges and individual holders on the grounds that these currencies had no underlying fiat and that it was necessary in the larger public interest to stop banks from providing any services related to these
    • What are virtual currencies?
    • What is the IMC’s view on DLT and crypto currencies?
    • Why have private crypto currencies attracted a ban?

     

    Nuclear race, slow but steady (Data Point)

    • WHAT IS NPT?
    • WHY INDIA DID NOT SIGN NPT?

     

    Trump 2.0 may see more slash-and-burn unilateralism

    • Dispute Settlement Mechanism
    • Appellate Body
    • Current Concern
    • Reasons for US Opposition
    • Future Action

     

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