Current Affair 1:

Nobel Prize in Chemistry for 2023

 

The 2023 Nobel Prize in Chemistry has been awarded to Moungi G. Bawendi, Louis E. Brus and Alexei I. Ekimov for the discovery and synthesis of quantum dots.

Everyone who studies chemistry learns that an element’s properties are governed by how many electrons it has. However, when matter shrinks to nano-dimensions quantum phenomena arise; these are governed by the size of the matter.

The Nobel Laureates in Chemistry 2023 have succeeded in producing particles so small that their properties are determined by quantum phenomena. The particles, which are called quantum dots, are now of great importance in nanotechnology.

Quantum dots (QDs) are man-made nanoscale crystals that exhibit unique optical and electronic properties, including the ability to transport electrons and emit light of various colors when exposed to UV light. These artificially synthesized semiconductor nanoparticles have a wide range of potential applications, including use in composites, solar cells, fluorescent biological labeling, displays, lighting, and medical imaging.

 

Quantum dots have different colours depending on their size.

Current Affair 2:

UMMEED (Understand, Motivate, Manage, Empathize, Empower, Develop)

 

Just read once.

The Union Ministry of Education has unveiled draft guidelines to address the critical issue of student suicides in schools.

According to the National Crime Records Bureau data, 11,396 children died by suicide in 2020, an 18 per cent rise from 9,613 such deaths in 2019 and 21 per cent rise from 9,413 in 2018.

Named UMMEED (Understand, Motivate, Manage, Empathize, Empower, Develop), these guidelines provide a comprehensive plan of action to enhance awareness, sensitivity, and support mechanisms for students facing mental health challenges.

The guidelines aim to help schools enhance sensitivity, understanding, and support for students, emphasizing the importance of every child’s well-being, “Every Child Matters”

The guidelines also talk about School Wellness Team (SWT) may be formed under the leadership of the School Principal, where each member of SWT is oriented in handling crisis situations.

Current Affair 3:

National Turmeric Board

 

News:

The Indian government has officially constituted the National Turmeric Board (NTB) to support the development and growth of the turmeric and turmeric product industry in the country.

The National Turmeric Board will provide leadership on turmeric related matters.

The Board shall have a Chairperson to be appointed by the Central Government, members from the Ministry of AYUSH, Departments of Pharmaceuticals, Agriculture & Farmers Welfare, Commerce & Industry of the Union Government, and have a Secretary to be appointed by the Department of Commerce.

India is the largest producer, consumer and exporter of turmeric in the world.

In the year 2022-23, an area of 3.24 lakh ha was under turmeric cultivation in India with a production of 11.61 lakh tonnes (over 75% of global turmeric production). More than 30 varieties of Turmeric are grown in India and it is grown in over 20 states in the country.

The largest producing states of Turmeric are Maharashtra, Telangana, Karnataka and Tamil Nadu.

India has more than 62% share of world trade in turmeric. During 2022-23, 1.534 lakh tonnes of turmeric and turmeric products valued at 207.45 million USD was exported by more than 380 exporters.

The leading export markets for Indian Turmeric are Bangladesh, UAE, USA and Malaysia.

With the focused activities of the Board, it is expected that turmeric exports will reach USD 1 Billion by 2030.

See this map:

Current Affair 4:

Expected Credit Loss (ECL)-based ‘loan loss provisioning framework’

 

News:

What is a loan-loss provision?

The RBI defines a loan loss provision as an expense that banks set aside for defaulted loans. Banks set aside a portion of the expected loan repayments from all loans in their portfolio to cover the losses either completely or partially.

In the event of a loss, instead of taking a loss in its cash flows, the bank can use its loan loss reserves to cover the loss.

The level of loan loss provision is determined based on the level expected to protect the safety and soundness of the bank.

The Reserve Bank of India (RBI) recently proposed to move the banking system to an expected credit loss-based provisioning approach from an “incurred loss” approach.

What is the Expected Credit Loss (ECL) regime?

Under this practice, a bank is required to estimate expected credit losses based on forward-looking estimations rather than wait for credit losses to be actually incurred before making corresponding loss provisions.

Benefits of the ECL regime:

It will result in excess provisions as compared to a shortfall in provisions, as seen in the incurred loss approach. It will further enhance the resilience of the banking systemin line with globally accepted norms.

What is the problem with the incurred loss-based approach?

• It requires banks to provide for losses that have already occurred or been incurred.
• The delay in recognizing loan losses resulted in banks having to make higher levels of provisions which affected the bank's capital. This affected banks’ resilience and posed systemic risks.
• The delays in recognizing loan losses overstated the income generated by the banks, which, coupled with dividend payouts, impacted their capital base.

 

 

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