 A very good evening aspirants. Welcome to Hindu News Paper Analysis brought to you by Shankar IAS Academy for the date 3rd of January 2023. I wish you all a very happy new year. May the new year be wonderful for you and your preparation will definitely end in success. And with that note, let us see the list of articles that we are going to see today. See displayed here are the list of articles that we will be seeing in detail in this discussion. And without any delay, let's get into the article discussion. Now look at this front page news article. It talks about the improvement in performance of the manufacturing sector. See the article says that for the October to December quarter, the Purchasing Manager Index averaged 56.3 which is the highest in the year. So in our discussion today, we are not going to discuss about the Purchasing Managers Index. Instead, let us quickly go through the significance of India's manufacturing sector from the exam perspective. See Indian economy has oriented itself towards service sector than towards the manufacturing sector. It means Indian economy is more concentrated towards service sector. See the main drawback of this shifting trend from manufacturing sector to service sector is that, only limited job opportunities will be created by the service sector. And because of this drawback, government started recognizing the significance of manufacturing sector. So in this discussion, we will try to understand the significance of manufacturing sector. Okay, now we know that nearly 45% of Indian population are dependent on the agriculture. And modernization of agriculture is impossible without a strong manufacturing sector. Here, what do I mean by modernization of agriculture? It is nothing but mechanization of agricultural activities. For example, using missions for harvesting or planting seeds etc. Okay, so how will we get these missions by manufacturing it, right? So like I said, modernization of agriculture is impossible without the manufacturing sector. And by doing this, new jobs will also be created. This is the first significance. Secondly, to eradicate unemployment and poverty, industrial development is very important. And this is the second significance. Thirdly, exports. See the manufactured goods can be exported and this would boost the trade and commerce while providing the much needed foreign currency. So by doing exports, we can earn foreign currency, right? And this will significantly improve the forex reserves. And this is the third significance. Fourthly, regional inequality is much higher in India. So to rectify this inequality, MSMEs becomes relevant. More than 45% of the manufacturing output is obtained from the MSME sector in India. So if these MSMEs are further promoted, people won't migrate in search of jobs and this would bring a balanced growth. You all know what is MSME, right? It is nothing but the micro, small, medium enterprises. And if you want to know more about these MSMEs, watch the 25th December 2022 analysis, okay? So these four points are the major ones that make the manufacturing sector so significant for the growth of the economy. See the government has recognized this significance and has started encouraging the sector through various schemes. Here we can quote the example of PLI. What is this PLI scheme? It is nothing but the production linked incentive scheme. Know that it was announced to encourage the manufacturing industries. And apart from this, there are various other schemes including make in India, skill India, mudra scheme, etc. See after these calculated initiatives, now India is gradually progressing on the road to industry 4.0. See the government of India's initiatives like national manufacturing policy aims to increase the share of manufacturing in the GDP, okay? And the aim is to increase the share of manufacturing in GDP to 25% by the year 2025. However, at this tenure, it is very important to address the issue of skill mismatch in India. See if we address the issue of skill mismatch in India, then we can easily reap the benefits of demographic dividend. And we can also take advantage of four market opportunities. So what are these four market opportunities? They are the expanding exports, localizing imports, internal demand and contract manufacturing. And that's all regarding this article discussion. In this discussion, we saw about the current status of Indian economy with respect to manufacturing sector. We saw the significance of manufacturing sector. And finally, we ended with the different initiatives taken by the government to promote the manufacturing sector. Now with these points in mind, let's move on to the next article discussion. Now let us see this news article. It is about the recent judgment of the Supreme Court regarding demonetization. See a constitution bench of the Supreme Court with 421 majority has ruled that the 2016 demonetization exercise of the government had no flaws and it also satisfies the test of proportionality. The news article also provides the views shared by the dissenting judge in the bench. In this discussion, we'll see about the judgment in detail and also about the demonetization. First of all, what is demonetization? Demonetization is a process by which certain currencies are stripped of their legal tender status. See basically, it is a process by which the legal tender status of some currencies are removed. In the history of independent India, the process of demonetization had been undertaken twice, once in the year 1978 and then recently in the year 2016. See in the year 1978 demonetization was done by the then Prime Minister, Mr. Muraji Desai. He removed the legal tender status of high denomination notes of Rs. 1000, 5000 and 10000 to weed out the black money. And recently in the year 2016, the Modi government revoked the legal tender status of Rs. 1000 and Rs. 500 notes. Both of these demonetization exercises of the government were carried out by using Section 26 Clause 2 of the Reserve Bank of India Act. Now what is this Section 26 Clause 2 of Reserve Bank of India Act? Section 26 Clause 2 says that the central government on recommendation of the central board of RBI can demonetize some banknotes. So according to this, RBI must render its advice and only based on this advice the central government can carry out the demonetization exercise. And this is where the issue lies. See in the Supreme Court judgment, we saw that 4 to 1 majority has ruled out that the exercise of demonetization had no flaws. So what does this mean? 4 judges ruled in the favour of the central government and one dissenting judge pointed out that according to Section 26 Clause 2, the initiative of demonetization must originate from the RBI and not from the government. In addition to this, she also noted that the government failed to follow the procedure according to Section 26 Clause 2. She said that even though the demonetization exercise was done in a well-intentioned manner, the government failed to follow the procedure. The RBI just had 24 hours to consider the proposal of the central government. So due to the short notice period, the RBI could not have given a well thought out advice regarding the demonetization. And these are all the issues cited by Justice B. V. Nagarathna regarding the demonetization exercise. And she was the one dissenting judge in the bench. Now let us see the other judges' opinions. Justice B. R. Gawai said that just because the central government had taken the initiative instead of RBI, it cannot be the sole reason to say that 2016 demonetization exercise was in violation of Section 26 Clause 2 of the RBI Act. He also said that both the government and RBI were in the consultation regarding demonetization for six months prior to the demonetization process. And according to Justice B. R. Gawai, the whole exercise of demonetization satisfies the doctrine of proportionality. Now here, what is doctrine of proportionality? The doctrine says that the administrative measure must not be more drastic than is necessary for attaining the desired result. Let me explain this to you with an example. Say you want to crack open an egg. If you take the egg and strike it with a kitchen knife, the egg will crack open. You can also crack open the egg by running over it with a bulldozer. In both the cases, the egg cracked open, right? But running over the egg with a bulldozer is a bit excessive. So in the second case, the means that is followed to achieve the end is not proportional. So according to the doctrine of proportionality, the means must be proportional to achieve the end. So what is the goal of the central government? The goal is to address the issues of fake currency, black money, terror financing and drug trafficking. And the government planned to achieve this goal through demonetization. So the means is demonetization. The goal is to address the issue of black money, terror financing and drug trafficking. So according to Justice B. R. Gawai, the demonetization exercise to address the issue of black money is not excessive and it follows the doctrine of proportionality. And finally, when the petitioner argued that the demonetization exercise violated people's right to property, for that Justice B. R. Gawai said that the right to property has reasonable restrictions attached to it. He also said 2016 demonetization exercise gave 52 days for the people to exchange old notes with the new notes. So the people's right to property was not violated. And he also said that individual interest must yield to achieve the larger public good. And after carefully stating these points, the Supreme Court in a majority judgment upheld the 2016 demonetization. So that's all regarding this Supreme Court judgment. And with this, we have also come to the end of this particular article discussion. In this discussion, we saw about what is demonetization, the instances of demonetization in the history of independent India. And we saw the section 26, clause 2 of the Reserve Bank of India Act. And finally, we ended our discussion by seeing the opinions of the different judges in a constitution bench regarding the demonetization exercise that happened in 2016. Now with these points in mind, let us move on to the next article discussion. Now let us take this article for our next discussion. It talks about the recent notified forest conservation rules 2022. See a conflict emerged between National Commission for Scheduled Tribes and the Union government regarding the new rules notified by the Environment Ministry. And the government has said that the new rules were framed under Forest Conservation Act 1980. And it does not encroach upon the rights of the forest dwellers. And this is the crux of the news article given here. In this context, let's learn about some of the important provisions of forest conservation rules 2022. The issues present in some of its provisions, how it is violated of Forest Right Act 2006. But before that, I have given here the syllabus relevant to this article. Quickly go through it. See before starting our discussion about the new rules, that is the forest conservation rules 2022 will briefly see about the Forest Rights Act 2006. See the Schedule Tribes and other traditional forest dwellers recognition of Forest Rights Act was enacted in the year 2006. And it was enacted to fulfill the need to protect the forest rights of the forest dwellers and the Schedule Tribes. See the Act recognized the rights of these communities which were previously not recognized during colonial times and the subsequent post independence period. Here note that the Act deals with the rights of forest dwelling communities to access the forest land and the resources. Previously these rights were denied to them because of the Forest Conservation Act of 1927 and 1980. See the Forest Rights Act 2006 encourages the sustainable use of forest ecosystem, conservation of biodiversity and balanced ecological use of forest products. And this is the brief about the Act 2006. Now coming to the newly notified rules that is the Forest Conservation Rules 2022. See the new rules are notified as per Section 4 of the Forest Conservation Act 1980. So it was not framed as per the Forest Act of 2006. And know that the Forest Rules 2022 replaces its earlier version which was notified in the year 2003. So this is a brief about the Forest Rules 2022. Now let's see about the important provisions mentioned in the rules. See the new rules have constituted a number of new committees. They are advisory committee, a regional empowered committee at each of the integrated regional officers and a screening committee at state government level or the union territory government level. See these committees are constituted to expedite the process of clearances for projects in the forest areas. So what does this mean? If a project is going to happen in a forest area then these are all the committees that are responsible for giving clearance for those projects. And these committees are the important provisions of Forest Rules 2022. Now coming to the next provision. See the new rules includes provisions relating to compensatory of forestation. See as per the rules if an applicant wants to divert forest lands to other purposes in states with more than 33 percentage of forest cover then they will be allowed to do the compensatory of forestation in any other state which is having less than 20 percentage of forest cover. So this is as per the rules of 2022. And thirdly the new rules proposed replacement of imprisonment as a penalty for less serious offences. See in case of less serious offences monetary penalty has replaced the imprisonment but for serious offences the provision for imprisonment has retained okay. Now these are all some of the important provisions of the forest conservation rules 2022. Now with this information let us move on to see what are all the issues with regards to these provisions. See the newly notified rules takes away the right of Gram Sabha to be included in the consultation process for approving the usage of forest land for other purposes. See in simple words they have removed the consultation process with the Gram Sabha. Now let us see what is the approval mechanism. See the approval mechanism for a project which seeks to divert the forest land to other purpose is as follows. Nodal officer to Divisional Forest Officer and the District Collector and from here to Conservator of Forests and from that to again Nodal Officer from here to State Administration and from here to the Ministry of Environment Forest and Climate Change. See here in this process of approval the District Administration under the District Collector plays an important part. See here the District Collector was mandated by the previous forest rules that is the forest rules of 2003 to complete the process of recognizing community forest rights under the Forest Rights Act and this forest rules 2003 was only replaced by forest rules 2022. So as per this the District Collector was required to ensure consent from each Gram Sabha for the activity mentioned in the application along with any rehabilitation measures if there are any. So what does this mean? This means that the District Collector has to ask the members of Gram Sabha regarding the activity mentioned in the project application. See after consulting with the Gram Panjait the Collector will pass the report to the Conservator of the Forest. As you can see this rule gave paramount importance to the people's governance. See the Gram Sabha and its consent over the diversion of land was made essential according to this rule and the forest conservation rules 2003 was in tune with the statutory rights guaranteed under Forest Rights Act 2006 and what are those statutory rights? As per Forest Rights Act 2006 forest dwellers have the participatory right in the decision making over the purpose for which the land is going to be used and on matters of compensation as well as rehabilitation. So in all of these processes forest dwellers have the participatory right and this was the statutory right guaranteed under Forest Rights Act 2006 and this was made sure by the forest rules 2003 but now the new rules 2022 has done away with this particular provision which seeked the opinion of Gram Sabha's while granting the approval for the projects. See the forest conservation rules 2022 states that the state government may pass an order for the diversion of forest land after ensuring the settlement of rights under Forest Rights Act 2006 and this should be done after the final approval from the central government that is the Ministry of Environment, Forest and Climate Change. So what does this mean? This means that the central government after giving its final approval it leaves the matter to the state government to pass an order for de-reservation or diversion of forest land. See the scenario now is that it is completely left to the state government to make sure that the climbs of forest dwellers are settled and this particular provision which allows for the approval of project by central government without considering the Gram Sabha is contested by the National Commission for Scheduled Tribes. See the commission says that this change in provision will lead to risk of violation of rights of the scheduled tribes who are the forest dwellers and this is the major issue with the provisions of the new rules of 2022. See the rights of the forest dwellers are important because forest dwellers play a big part in conserving the forest areas which they inhabit and they can give in valuable details about the smugglers in the protected areas. Other than this their local conservation knowledge of the forest land is highly valuable. See the new rules which excludes the Gram Sabha from the consultation process is anti-ethical to the Forest Rights Act of 2006. So the government needs to make sure that proper consultation is done with the Gram Sabha in approving the forest land diversion projects to ensure participatory governance. Now that's all for this article discussion. In this discussion we saw about Forest Rights Act 2006. We saw about the newly notified rules of forest conservation 2022. We saw the important provisions of the rules and we saw the issues in the rules and finally we ended our discussion by seeing the significance of the forest dwellers. See take note of all of these points. Each and every point is important from the example perspective. Now with these points in mind let us move on to the next article discussion. Now see this editorial article. This article talks about the status of prisons in India. During last November at the Constitution Day celebrations our president shared a snippet of her journey with the audience. She said that while visiting the prisons across India she came to know about the circumstances of those imprisoned. She highlighted that the individuals in the prison were often unaware of their fundamental rights. She also said the individuals had been imprisoned for prolonged periods for minor offenses and their families are struggling with poverty and they are unable to bail them out. So the president made a call to the government and the judiciary to address the issue of overcrowding of prisons. Then in June last year Lieutenant Governor of Delhi directed the Delhi Development Authority to allocate 1.6 lakh square meters of land to the Delhi's prison department and this is to construct a district prison complex in Narela and this move was done by Lieutenant Governor to ease the burden on existing prisons in Delhi. Now what do these two situations tell us there are many problems prevailing in the prisons. Okay now in this discussion we'll learn about these status of prisons in India then the issues prevailing in the prisons and finally we'll also see some solutions to tackle the problems with prisons in India. But before that the syllabus relevant to this article is highlighted here for your reference please go through it. Now let us see the status of prisons from the 2021 prison statistics data. Know that the prison statistics was published by National Crime Records Bureau. See this is an important fact take note of it. Now let's see the data according to data from 2021 prison statistics nearly 8 out of every 10 prisoners in Indian jails are awaiting trial this means that 8 out of 10 prisoners are accused but they are not convicted by the courts and the 2021 statistics also points out that the occupancy rate at prisons also rose from 118 percentage in the year 2020 to 130 percentage in the year 2021 and then the statistics also noted that the number of convicted prisons has increased from 1,12,589 in the year 2022, 1,22,852 in the year 2021. This means that the percentage has increased by 9.1 percentage during the one-year period and then coming to the case of under trial prisoners the numbers have increased from approximately 3 lakh to 4 lakh from the year 2020 to 2021. Here the percentage rises 14.9 percentage during one-year period. So what is this signify? It signifies that the prisons are overcrowded. I'll give you an additional fact here with 185 percentage occupancy Uttarakhand has the most overcrowded prison and then with 100.2 percentage occupancy Rajasthan has the least overcrowded prisons and these are all the facts you have to remember about the status of prisons in India. Now with this information let us see what are all the issues prevailing in the prisons in India. The first and foremost issue is overcrowding this we saw already right. See the prisons are overcrowded by the under trial persons and the occupancy rate at prisons has also increased. So why is this overcrowding a major concern? See overcrowding in prisons leads to unhealthy living conditions. See if jails are overcrowded the resources like water food living space they will not be enough to afford the extra prisoners right? So overcrowding is the foremost concern and also know that prisons in India are still governed by prisons Act 1894. The author says that these colonial laws are highly casteist and they remain largely unchanged since they were drafted by the British. For example in some jails the jail manuals continue to focus on purity as prescribed by the caste system. Even the prison staff assign work based on the prisoners caste identity. So these age old legislations are the second most concern and then the other concern is the shortage in the staffs. See regarding the jail staff status the prison statistics 2021 says that the sanctioned strength of jail staff was 89479 but the actual strength was 64449 as on 31st December 2021. So the statistics found that the vacancies are not being filled up by the government and the statistics also noted that the average vacancy levels across all the prison staff saw a marginal decrease from 30.3 in 2020 to 28 in 2021. And the crucial fact that you have to know is the ratio between prison staff and the prisoners in Indian prison is approximately 1 is to 7. It means only one prison officer is available for 7 prisoners in India. While in the case of UK 2 prison officers are available for every 3 prisoners. So the shortage of staff is another concern. And then there are also reports of abuse of prisoners. See the guards in prisons are physically abusing the prisoners and this provides mental pressure to the inmates. So physical abuse is another concern. And then comes the custodial torture or death. See in many prisons the police officials are giving brutal physical treatment to the prisoners and sometimes this may even lead to death. So this is another major problem of jails in India. And the next problem is the unequal treatments. See as we already saw in jails they prefer treatments on the basis of caste system. So as per this special privileges are accorded to prisoners who came from the upper class and the jail staff are ill treating the poor people. So this unequal treatment is also another issue. And these are all the issues prevailing in prisons in India. Now we'll see some solutions to address these problems. Firstly both the state and the central government should propose plans to construct new jail complexes and this will help to address the overcrowding of jails in India and it will also help to provide better living conditions to the prisoners. Secondly the age old legislation must be amended and the amendment should provide the way for rehabilitation of prisoners. See recently the central government has introduced Jan Vishwas Bill 2022 in the parliament. This bill seeks to decriminalize 183 offenses across 42 legislations and this bill proposes replacement of minor offenses with the monetary penalties. So this will also help reduce the overcrowding of jails. But we have to wait and see what is going to happen to this bill because it has not yet been enacted as an act. Thirdly the central government and the state government should immediately try to fill the vacancies of staff in the jail and this will increase the ratio between prison staff and the prisoners. And finally a vigilant mechanism should be framed to address the issues of custodial torture and the abuse of prisoners and this should be created both at the central and state level. Now that's all regarding this particular article discussion. In this discussion we saw about data given in the prison statistics 2021. We saw about the occupancy rate. We saw about the under trial prisoners. We saw about vacancies in jail staff. And after that we moved on to see about the issues prevailing in prisons in India. And finally we ended our discussion by seeing some solutions to the issues that are prevailing in the prisons in India. Now with these points in mind let us move on to the next article discussion. Now see this article from the editorial page. It talks about the development of the border areas. The author talks about the vibrant village program announced by the government in the 2022 budget. And this is to promote development and communication in the border areas. See the author quotes the speech of a finance minister who said that the scheme is for funding the development of border areas with spars population limited connectivity and infrastructure that are often left out from the developmental gains. So in this context we'll try to learn about the vibrant village program and why it is important for the border areas. See the vibrant village program which is shortly referred as VVP was announced last year and there is already a program with similar objective. See the existing border area development plan of the Ministry of Home Affairs covers the development of all border regions. So it is unclear how this VVP scheme is different from the border area development plan. However from example perspective we'll learn some key highlights of the program. See the program basically aims to improve the infrastructure in villages along the India's border with China. This means infrastructure will be improved in states like Uttarakhand, Himachal Pradesh and Arunachal Pradesh. Apart from this the government also tries to bring in the feature of tourism. So residential and tourist centres will be constructed in these villages and for this we need proper roads and energy supply right. Therefore the program will also provide for improvement in road connectivity and development of decentralized renewable energy sources. And adding to this direct access to Durudasin and education related channels will be given to these border villages and support will be provided for livelihood as well. And these are all the key highlights of the vibrant village program. Now we should know why we need such a program and what we will gain from such a program. Firstly we have the need for a secured border. Our union home minister Amit Shah said recently that borders could be permanently secured only when border villages are populated by patriotic citizens who are concerned for the country. And this is very true because borders are the areas where the terrorist activities are at the highest and the terror outfits lure the people into terror activities which poses a huge threat for the security of our country. So we need a supportive and patriotic population in the border regions. Now secondly the program will be a counter to China's model villages initiative. China has established new villages along the LAC that is the line of actual control in the past few years and particularly across the Arunachal Pradesh border. So India needs to develop its border region for security purposes and for the free movement of armed forces. And these are all the two things that makes it necessary for a program such as vibrant village program. And that's all for this article discussion. In this discussion we saw about vibrant village program, its key highlights and the need for such a program. Now with these points in mind let us move on to the next article discussion. Now look at this article here. It talks about a peaceful protest that is going on against the Jharkhand government's decision to promote Parasnath Parvath as part of ecotourism. This is because the Jains feel that this move could change the demographic of visitors to Samet Shikharji at Parasnath Parvath hill. They fear that it will change the nature of the sport from a place of pilgrimage to a religious tourist destination. And in this context let's quickly revise a few important facts regarding Jainism. See students often get confused between the philosophies of Buddhism and Jainism. Let's clarify that in this discussion. First with respect to the aspect of God. Jainism denies the existence of God, though they acknowledge the presence of Jinnas or Cavalins. On the other hand if you see Buddhism the original Buddhist doctrine does not entail any godly figures. But the later Buddhist sect introduced some godly figures like Bodhisattvas. So this is about the aspect of God in Buddhism and Jainism. Jainism denies the existence but they acknowledge the presence of Jinnas. Original Buddhist doctrine does not entail any godly figures but the later ones they introduced Bodhisattvas. Secondly we'll see about the concept of Nirvana. See Jainism defines Nirvana as a state of moksha where a being loses its identity and is free from the cycle of birth and death. If you see in Buddhism Nirvana is the freedom from the cycle of rebirth. That is when a being turns into a state of non-being or sanya it loses its identity and becomes nothing. See although it seems there is a slight similarity these concepts are different. In Jainism Nirvana is an escape from the body though not from the existence. In Jainism after Nirvana the soul continues to remain as an individual soul but in the highest state of purity and enlightenment. Now coming to Buddhism. In Buddhism Nirvana is used to refer to the extinction of desire, hatred, ignorance and ultimately extinction from suffering and rebirth. So after Nirvana there is no soul but the individuality of an individual passes into nothingness. See this is beyond any description and speculation okay and this is about the concept of Nirvana in Jainism and Buddhism. So in Jainism Nirvana means the soul is escaping from the body it will remain as a soul but in the highest state of purity and enlightenment. But in Buddhism Nirvana is the escape from desire, hatred, suffering and rebirth. Here there will be no soul but the individuality passes into nothingness. Thirdly we will see about the liberation. Jainism says that the path of liberation is to follow right perception, right knowledge, right conduct. In Buddhism the path of liberation goes through good conduct and good deeds and they are mentioned in the eight-fold path, four noble truths, five perceptions and other moral conducts and this is about the liberation in Jainism and Buddhism. And then we will see about the aspect of karma. See Jainism believes in the universality of karma and its effect on human beings. See the karmic substance reminds with the being until good conduct and self-purification eliminates them. Here Buddhism also believes in universality of karma which is a result of one's action. But here there is no concept on elimination of karma. So this is about the karma aspect. Now talking about soul according to Jainism soul is present in every animate and inanimate object of the universe including its elements such as earth, water, wind, fire and air. And according to Buddhism soul is an individuality that does exist in plans and animals but it does not exist in non-living or inanimate things. So these are all the concepts in Jainism and Buddhism that you have to be very clear about. Here I have given the table of Jain literature. Just go through it. It will be very useful for your problems. Okay. You just go through the name of the text and what it is about. Now that's all for this article discussion. In this discussion we saw about the different philosophies that were preached in Buddhism and Jainism. We compared the concepts and we understood how it was perceived in Jainism and how it was perceived in Buddhism. We saw the aspect of God, concept of Nirvana, liberation, aspect of karma and the aspect of soul. Now with these points in mind let us move on to the next article discussion. Now take a look at this news article. It talks about the RBI's Retirement of State Bank of India, ICICI Bank and HDFC Bank in the category of Domestic Systemically Important Banks. And this is what is given in the news article. In this context let's learn about what is this domestic systemically important banks. See these domestic systemically important banks or banks which the Reserve Bank of India recognizes through a framework called as domestic systemically important banks framework. So here after in our discussion we are going to refer this as DSIB. See these DSIB framework was first introduced by RBI in the year 2014 and this DSIB framework requires the Reserve Bank of India to disclose the names of banks designated as the DSIBs at the start of each year. So each year Reserve Bank is designating some banks as DSIB and it is being done to place these banks in appropriate buckets depending upon their systemic importance scores and based on the bucket in which a bank is placed an additional common equity has to be maintained by that bank and according to the framework there are five buckets in total and know that ICICI Bank and HDFC Bank are placed in the first bucket. So what does this mean? This means that these two banks have to maintain an additional common equity as per the tier one requirement as a percentage of risk weighted assets of 0.20 percentage. Here I will explain each term. See tier one it refers to the capital that is maintained by the bank. It includes common stock disclosed reserves and certain other assets. Here the term reserves means both CRR and DSLR. Now coming to the risk weighted assets the term risk weighted assets refers to the outstanding loans or assets which are given by the banks which have some sort of risk attached to it. Now let me explain risk weighted asset using an example. See see this table here. See cash and securities housing loans and business loans these are all the assets of the bank. Now if you can see in this table the cash has zero risk weight and the securities also have zero risk weight because there is no risk attached to it right. They can get back but regarding the housing loan the risk is 35 percentage and business loans the risk weight is 100 percentage. Why business loans have higher risk weight because if the business fails then the loan will not be paid back right and that's why 100 percentage risk weight age is given to business loans and based on this risk weight using a formula risk weighted assets are calculated. So totally if there are 100 dollars in the asset then based on these things $44 is termed as the risk weighted assets and 0.2 percentage of this risk weighted asset has to be maintained as the additional common equity in a bank. So I hope now you understood the additional common equity that is to be maintained by the banks which is a percentage of risk weighted assets and we saw how those risk weighted assets are calculated and as I said already if a bank is placed in the first bucket then they have to maintain 0.2 percentage of the risk weighted assets. Now coming back to the topic of DSIBs see SBI is placed in the third bucket as it is in the third bucket it needs to maintain an additional common equity tier one requirement as a percentage of risk weighted assets of 0.60 percentage. Now look at this table here this table gives you the details of percentage of risk weighted assets based on the different levels of bucket like I said for the first bucket 0.2 percentage should be maintained for the second bucket 0.4 percentage third bucket 0.6 percentage fourth bucket 0.8 percentage and for the fifth bucket one percentage of risk weighted assets should be maintained as additional common equity. So this is about declaring the banks as systemically important banks now coming to the question why only these three banks are identified as domestic systemically important banks see the simple answer to the question is that presently these three banks are the most important financial institutions in our country any kind of regrettable incident to these banks will ultimately have a big impact on the real economy and this is the reason why these banks are asked to keep an additional buffer to act as cushion in the times of any exigencies. Now additionally let us see the origin of this practice also during the 2007 global financial crisis it was observed that problems faced by certain large and highly interconnected financial institutions hampered the orderly functioning of the financial system and this in turn negatively impacted the real economy and due to this government intervention was considered necessary in many jurisdictions around the world to ensure financial stability and this is why the practice of identifying systemically important banks started. So a systemically important bank is a bank whose failure might trigger a financial crisis they are also referred as banks which are way too big to fail and according to this principle only India started identifying domestic systemically important banks and this is all about the DSIBs through this discussion we saw about the term DSIBs and the additional obligations for the banks which are placed in the different buckets under domestic systemically important banks framework and we saw why certain banks are only identified as DSIBs and finally we ended our discussion by seeing the origin of the practice. Now with these points in mind let us move on to the next article discussion. Now this is the final article for our discussion today the news is that the head of the International Monetary Fund in a press note said that 2023 is going to be a tough year for much of the global economy she also noted that the three main economies that is the United States Europe and China they are all slowing down simultaneously and this is the crux of the news article given here now in this context let's learn about International Monetary Fund and the special drawing rights of the IMF in prelims perspective. See the International Monetary Fund which is shortly referred as IMF was established in the year 1944 at the Bretton Woods Conference however it came into operation on 27th December 1945 know that the IMF was established along with the International Bank for Reconstruction and Development which is the lending arm of World Bank Group. Now coming back the IMF presently has 190 members and its headquarters is located in Washington DC. Now with this information let us see about the objectives of the IMF. The primary objective of the IMF is to ensure the stability of the international monetary system and apart from this IMF also aims to accomplish different goals like reducing global poverty, encouraging international trade and finally they also strive to promote financial stability and economic growth. Now having seen about the objectives let us move on to see about the functions of IMF. See IMF is performing three main functions now we will see them one by one the first one is regulatory function. See IMF oversees the economies of member countries as we already saw its primary objective is to promote stability in the global monetary system right. So the IMF monitors the economies of its 190 member countries and this activity is known as economic surveillance and it happens at both the national and global levels and this is the first function. Now coming to the second function it is the financial function. See what the IMF does is see IMF while performing the financial functions it lends to countries. See instead of lending to individual projects the IMF lends money to member countries with the balance of payments problems and this assistance will help the member countries to replenish international reserves and then to stabilize their national currencies and it also strengthens conditions for the economic growth and this is the second function which is the financial function and the final one is the consultative function. See IMF helps member countries to modernize their economies and this is achieved through capacity development by providing assistance policy advice and training through various programs. See usually IMF provides the member countries with technical assistance in the areas of fiscal policy, monetary and exchange rate policies, banking and financial system supervision, regulation and statistics and these are all the three functions that are performed by IMF. First one is regulatory function, the second one is financial function and the third one is consultative function. Now finally let us see about the special drawing rights of the IMF. See special drawing rights is a supplementary international reserve asset. See it was created by IMF in the year 1969. The main motto for the creation of SDR is to supplement the official reserves of the member countries. This means that SDRs can be exchanged for the currencies of member nations in case of financial crisis in their domestic market. Know that the value of SDR is based on a basket of five currencies and these five currencies include US dollar, the euro, Chinese renminbi, Japanese yen and British pound sterling. So based on these five currencies the value of SDR will be calculated and know that SDR is neither a currency nor a climb on IMF. As I said already it is a supplementary international reserve held by the IMF member countries and these SDRs can be exchanged for currencies of member nations in case of financial crisis. With this we have come to the end of this particular article discussion. In this discussion we saw about IMF, its history, its establishment, its objectives, functions and finally we ended our discussion by seeing the special drawing rights of IMF. Now with these points in mind let us move on to the next part of the discussion that is the practice prelims question discussion. As per today we have five prelims questions I will solve four of them and one of them is a quiz question for you. Now let us take this first question for our discussion. Consider the following statements with respect to purchasing managers index. Statement one it is an index of the prevailing direction of economic trends in the manufacturing sector only. See this statement is incorrect. It is an index of the prevailing direction of economic trends in both manufacturing and service sector. Statement two if the score of a particular month is 55 then it denotes contraction in the sectors. See a score above 50 means expansion while a score below 50 denotes contraction and the score of exactly 50 indicates no change in the sectors. So here 55 means expansion right. So the statement is also incorrect. So the correct answer to this question is option D neither one nor two. Now coming to the second question consider the following statements. Statement one the McMohen line separates India and China along the eastern border. See this statement is correct. It separates India and China that is the China occupied territory of east Himalayan region and the Indian regions. Statement two the Ratcliffe line demarcates India and China along the western border. See this statement is incorrect. The Ratcliffe line separates India from Pakistan. Now coming to the third statement the Durant line separates India and Pakistan. See this statement is also incorrect. The Durant line it is an international boundary line running between the countries of Pakistan and Afghanistan. So what is the correct answer here? We found out that statement two and three are incorrect and statement one is correct. So the correct option is option A one only. Now moving on to the next question consider the following statements with respect to Jainism. Statement one Digambara believes that women cannot achieve Nirvana while Swetampara believes that women are equally capable of achieving liberation as a man. Statement two Digambara polls the opinion that original texts of the Jainism were lost while Swetampara believed that they have the original Jain scriptures. Now let me explain about the Digambara and Swetampara divisions of Jainism and after that we will address this question. See the division of Jainism occurred mainly due to the Femine in Magadha and this Femine compelled a group led by Badrabahu to move to South India. See during the 12 years of Femine the group in the South India they stick to the strict practices while the group in Magadha adopted a more relaxed attitude and started wearing white clothes. And after the end of Femine when the southern group came back to Magadha the changed practices between the southern group and the northern group led to the division of Jainism into two sects. Now firstly let us see about the Digambara division. See monks of this sect believe in complete nudity. Male monks do not wear any clothes while female monks wear unstitched plain white saris. See this division follows all five wars that is Satya, Ahimsa, Asteya, Aparigraha and Brahmacharya. This division believed that women cannot achieve liberation and the major exponent of this division is Badrabahu. Secondly there is this Svetampara division. See in this division monks wear white clothes and this division follow only four wars that is Satya, Ahimsa, Asteya, Aparigraha and they believe that women can also achieve liberation. The major exponent of this sect is Sthulabhadra. So from this we can say that statement one is correct and know that statement two is also correct. So the correct answer to this question is option C both one and two. Now moving on to the next question with reference to basal norms consider the following statements. Statement one basal norms refers to international banking sector norms which requires banks to maintain a minimum capital adequacy ratio. See this statement is correct. Basal norms or banking standards proposed by banking committee on banking supervision. It requires banks to maintain a minimum capital adequacy ratio. Now coming to statement two, India currently follows basal three norms. This is incorrect because India is currently following basal two norms. So the correct answer to this question is option A one only. Now moving on to the next question. See this question is the quiz question for you. See this question is with reference to special drawing rights of the IMF and we have discussed about it in the discussion itself. So think about our discussion. If you are not able to recollect the points go back to the discussion and revise it again and come back and answer this question okay. Answer carefully, attempt to the question carefully and post your answer in the comment section. Aspirants displayed here are the main questions for your practice. So if you are interested write it and post your answer in the comment section. And if you have any queries at all regarding the articles that we discussed today, post that also in the comment section. And with this we have come to the end. If you find the video useful, like, share and comment and do subscribe to Shankara's Academy's YouTube channel for further updates. Thank you.