Ans: B

Exp:

The Union  Finance Minister urged lenders to be more assertive about resolving distressed assets through the government-backed bad bank NARCL.

Statement 1 is Correct: NARCL has been specifically set up to address the issue of large-value non-performing assets (NPAs) in the banking system.

• It targets stressed assets worth ₹500 crore and above, which constitute a significant portion of the overall NPAs in the Indian banking sector.
• This selective approach ensures that resources are concentrated on resolving high-value, high-impact accounts rather than scattered efforts across smaller NPAs.

Statement 2 is Incorrect: The resolution process is handled by the India Debt Resolution Company Ltd. (IDRCL), not the RBI.

• IDRCL is a separate entity established to assist NARCL in resolving stressed assets.
• While NARCL acquires and aggregates NPAs, IDRCL works on behalf of NARCL to resolve them through professional debt resolution methods, such as:
  1. Settlement with borrowers: Negotiating for repayment at revised terms.
  2. Loan restructuring: Modifying loan conditions to make repayment feasible.
  3. Asset sales: Selling collateral or other pledged assets to recover funds.

Statement 3 is Incorrect: To  instil confidence among banks transferring their bad loans, the government provides a guarantee for part of the residual amount in cases where NARCL fails to recover the full value of the loans.

• Details of the Guarantee:
  • The guarantee applies to the security receipts (SRs) issued by NARCL to the banks in exchange for bad loans.
  • If the recovery is less than the agreed value of the loan, the government steps in to compensate the bank for a portion of the shortfall.
  • This mechanism reduces the risk for banks and incentivizes them to participate in the bad bank system.

Ans: A

Exp: 

The UAE has unveiled an ambitious initiative to establish the “Global Energy Efficiency Alliance” during COP29, hosted in Azerbaijan. Hence Statement 2 is Incorrect.

Statement 1 is correct: This Initiative aims to double global energy efficiency rates by 2030 and contribute to significant emission reductions. 

• The initiative builds on the ‘UAE Consensus’ from COP28, a commitment that brought together countries, organizations, and corporations to reduce carbon emissions and promote sustainable resource management.

Statement 3 is incorrect: The UAE plans to lead the alliance by sharing its expertise in energy efficiency, fostering knowledge transfer, and building effective partnership models with the private sector. 

• The alliance is designed to support the reduction of carbon emissions and the sustainable use of natural resources through knowledge sharing, capacity building, and standardisation efforts. 
• It aims to encourage strategic public-private partnerships and bolster investments in energy efficiency initiatives. 
• The alliance will focus on compiling and disseminating best practices, with a particular emphasis on assisting African nations. This support will extend to developing financing options and technological solutions vital for the continent’s progress in energy sustainability.

Ans: B

Exp: 

 The  Department of Investment and Capital Asset Management (DIPAM) issues revised capital restructuring norms for CPSEs. These guidelines do not apply to public sector banks and public sector insurance companies.

Statement 1 is incorrect: As per the revised guidelines, CPSEs must pay a minimum annual dividend of 30% of net profit or 4% of net worth, whichever is higher.

• The earlier guideline (2016) required CPSEs to pay a minimum of 30% of profit after tax (PAT) or 5% of net worth, whichever was higher. The 2024 guidelines have reduced the net worth requirement from 5% to 4%.

Statement 2 is incorrect: Financial sector CPSEs (e.g., non-banking financial companies or NBFCs) are not exempted from the dividend requirement.

• Instead, the guidelines specifically state that financial sector CPSEs may pay a minimum annual dividend of 30% of profit after tax (PAT), subject to any existing legal limitations under relevant statutes.

Statement 3 is correct as CPSEs with defined reserves exceeding 20 times the paid-up equity share capital are encouraged to issue bonus shares.

Ans: B
Exp: 

A team of Scientists at Saha Institute of Nuclear Physics, Kolkata, in a groundbreaking experiment,  have built bacterial computers that behave like artificial neural networks (ANN). 

Statement 1 is Correct:  Bacterial computers utilize genetic circuits that are artificially introduced into bacteria such as Escherichia coli.

• These genetic circuits consist of synthetic promoters and transcription factors, which work together to mimic computational processes.
• For instance, bacterial computers can simulate the behavior of artificial neural networks (ANNs) by combining genetic elements that process input chemical signals and produce outputs based on programmed rules.

• How It Works:
  • The genetic circuits in bacteria respond to chemical inducers, activating or suppressing certain genes.
  • The outputs of these computations are often indicated by fluorescent proteins, such as green or crimson, which represent binary states (1 or 0).

Statement 2 is Incorrect: Unlike conventional computers that use electrical voltages to represent binary states (high voltage = 1, low voltage = 0), bacterial computers operate by manipulating chemical signals.

• Inputs are represented by the presence or absence of chemical inducers, and outputs are produced as visible fluorescent proteins.
• This chemical-to-binary translation allows bacteria to perform logical operations without relying on electrical signals.

Statement 3 is Correct: Bacterial computers have been demonstrated to perform complex computational tasks such as:

• Determining prime numbers: By encoding numbers in binary (using chemical inducers) and using genetic circuits to compute whether a number is prime.
• Optimization problems: For instance, solving how many maximum pieces a pie can be divided into using a fixed number of straight cuts.

• Significance of These Tasks:
  • These computations show that even single-celled organisms can perform abstract mathematical tasks, raising new questions about the biochemical nature of intelligence.
  • The outputs of such computations are interpreted through the presence or absence of specific fluorescent proteins, representing “yes” or “no” answers or numerical results in binary form.

Ans: C

Exp:

The President on November 18, 2024 appointed 1989 batch Indian Administrative Service (IAS) officer K. Sanjay Murthy as the new Comptroller and Auditor General of India (CAG),  “By virtue of the power vested in her by clause (1) of article 148 of the Constitution of India. Hence Statement 1 is Incorrect.

Statement 2 is incorrect: As per the Constitution and the CAG (Duties, Powers and Conditions of Service) Act, 1971, the tenure of the CAG is six years or until the age of 65, whichever is earlier.

Statement 3 is correct: Article 148(3) explicitly provides that the conditions of service of the CAG, including salary, cannot be altered to their disadvantage after their appointment.

• This constitutional safeguard ensures the independence of the CAG from potential political or executive pressures, reinforcing its role as an impartial authority.

Statement 4 is correct: Article 148 provides that the removal of the CAG follows a similar process as that of a Supreme Court judge.

• Removal requires:

• • Ground: Proven misbehavior or incapacity.
  • An address by Parliament supported by a special majority (a majority of the total membership of each House and a majority of not less than two-thirds of members present and voting).
  • The President acts on the recommendation of Parliament after this process is completed.