Category: ENVIRONMENT

Context: A new study on the world’s first-ever market for trading particulate emissions, which are tiny particles that can impact human health, revealed that employing the market mechanism helped reduce pollution by 20-30 per cent in an industrial cluster in Surat.

Decoding the context: Published in the Quarterly Journal of Economics, the study saw researchers compare the emissions performance of participating plants with those complying with the business-as-usual pollution standards. It covered 162 plants, predominantly in the textile sector.

Learning Corner:

• The Gujarat Particulate Matter (PM) Emission Trading Scheme (ETS), launched in Surat in 2019, is the world’s first market-based system for trading Particulate Matter (PM) emissions, aimed at reducing industrial air pollution.

Key Points on Gujarat PM ETS

• Initiated on June 5, 2019 (World Environment Day) by the Gujarat Pollution Control Board (GPCB) in Surat, a textile and industrial hub.
• World’s first ETS for PM emissions, unlike carbon or SO₂ trading systems (e.g., EU ETS, Kyoto Protocol) and India’s first for any pollutant.
• Developed by: Gujarat Pollution Control Board (GPCB) in collaboration with the Energy Policy Institute at the University of Chicago (EPIC), Yale University, and Abdul Latif Jameel Poverty Action Lab (J-PAL).

Mechanism (Cap-and-Trade):

• Cap: Sets a total PM emission limit (initially 280 tonnes/month, reduced to 170 tonnes by 2022) for participating industries.
• Permits: 80% of permits allocated free based on emission sources (boilers, heaters); 20% auctioned at ₹5-100/kg.
• Trading: Industries exceeding caps buy permits from those under limits via the National Commodities and Derivatives Exchange (NeML).
• Monitoring: Continuous Emission Monitoring Systems (CEMS) track real-time PM emissions, replacing manual inspections.

Source : Indian Express

Category: GOVERNMENT SCHEMES

Context: The Uttarakhand cabinet approved the Adarsh Sanskrit village programme, which aims to teach the language to one village in each district of the hill state.

Decoding the context:  The move is aimed at promoting Sanskrit, the second official language of the state, and comes on the heels of other similar schemes, such as financial incentives to girls and SC/ST students who opt for Sanskrit in schools.

Learning Corner:

• The Adarsh Sanskrit Village Programme is an initiative by the Uttarakhand government to promote Sanskrit, the state’s second official language, by integrating it into the daily life of one village in each of the state’s 13 districts. 

Objectives of the Adarsh Sanskrit Village Programme

• Promote Sanskrit as a Living Language:
  • Encourage villagers to use Sanskrit in daily conversations, greetings, and community activities, moving beyond its traditional confinement to academic or religious contexts.
  • Make Sanskrit as familiar as local languages like Hindi, Garhwali, or Kumaoni.
• Preserve Cultural Heritage:
  • Connect communities with Indian philosophy and knowledge systems embedded in Sanskrit texts, fostering an understanding of Dharma Shastras, epics (e.g., Mahabharata, Ramayana), and other cultural works.
• Counter the perception that Sanskrit is tied to specific castes or communities, promoting inclusivity across social groups, including Muslims, Dalits, and tribals.
• Educational and Social Development:
  • Teach Sanskrit through structured courses, shlokas, and stories from texts like the Panchatantra and Durga Saptashati, making learning accessible and engaging.
  • Promote social values through Sanskrit-based education.
• Create employment opportunities by linking Sanskrit proficiency to industry needs, supported by industry associations.

Status of Sanskrit in India

• Sanskrit is one of the oldest known Indo-Aryan languages, forming the basis of Vedic literature, Hindu philosophy, and classical Indian sciences (Ayurveda, Astronomy, Mathematics).
• As per Census 2011, only about 24,821 people reported Sanskrit as their mother tongue.
• It is more commonly used as a second or third language, especially in religious, academic, and traditional contexts.
• There are a few Sanskrit-speaking villages, especially in Karnataka, Madhya Pradesh, and Uttarakhand (e.g., Mattur in Karnataka, Jhiri in Madhya Pradesh)
• Sanskrit is one of the 22 scheduled languages listed in the Eighth Schedule, added in the original Constitution of 1950.
• Article 351 directs the Union to promote Hindi as a link language while enriching it with vocabulary from other Indian languages, primarily Sanskrit.

Source : Indian Express

Category: ECONOMY

Context: The Reserve Bank of India, in its review of requirement of counter-cyclical capital buffer on Tuesday said it has decided against activating countercyclical capital buffer (CCyB) as it is not needed in the present circumstances. 

Decoding the context: Counter-Cyclical Capital Buffer (CCyB) is a macroprudential tool mandated under the Basel III framework to enhance the resilience of banks during economic cycles.

Learning Corner:

• CCyB is an additional capital buffer (0-2.5% of risk-weighted assets) that banks must hold during periods of excessive credit growth to prevent systemic risks.
• It aims to:
  • Strengthen banks against potential losses during economic downturns.
  • Moderate credit booms to prevent asset bubbles.
• Mechanism:
  • Activation: RBI activates CCyB when credit growth (e.g., high credit-to-GDP gap) signals systemic risk, requiring banks to build capital reserves.
  • Deactivation: During downturns, RBI reduces or removes CCyB, freeing capital to support lending and economic recovery.
  • Capital is held as Common Equity Tier 1 (CET1), ensuring high-quality reserves.

Source : Business Standard

Category: ECONOMY

Context: The Bombay Stock Exchange (BSE), Asia’s oldest stock exchange, marked a historic milestone as it celebrated its 150th anniversary, and Finance Minister Nirmala Sitharaman was the chief guest at the celebration.

Decoding the context: Nirmala Sitharaman lauded the Bombay Stock Exchange’s (BSE) technological advancements and its vital role in India’s economic development.

Learning Corner:

• Founded in 1875 as the “Native Share & Stock Brokers’ Association” in Mumbai, BSE is India’s first stock exchange.
• BSE evolved from informal trading to a modern, technology-driven exchange, symbolizing India’s financial growth.

Structure and Governance:

• A corporate entity since 2005, listed on the National Stock Exchange (NSE) in 2017.
• Regulated by the Securities and Exchange Board of India (SEBI), ensuring transparency and investor protection.

Key Functions:

• Facilitates trading in equities, derivatives, mutual funds, and bonds, with over 5,500 listed companies (2025).
• Hosts the BSE SENSEX, India’s benchmark index of 30 major companies, reflecting market trends.
• Processes 1,500 crore orders daily and 14 lakh orders per second, with transactions completed in under 200 microseconds.

Recent Achievements:

• Pioneered T+1 settlement, making India’s markets faster than many global counterparts.
• Launched the BSE 150 Index during the 150th anniversary, tracking the top 150 companies by market capitalization and liquidity.

Economic Significance:

• Mirrors India’s economic growth (5th largest economy, $3.5 trillion GDP, 2025), with a market capitalization of ₹450 lakh crore (2025).
• Drives inclusivity through retail participation (120 million investors, 2025) and domestic institutional investors (DIIs), with ₹6.1 lakh crore inflows in FY24.
• Supports capital formation for industries, MSMEs, and startups, aligning with schemes like Make in India.

Source : News On AIR

Category: ENVIRONMENT

Context: Earth-based lifeforms known as lichens may be tough enough to survive on Mars, a new study suggests.

Decoding the context: Scientists came to this conclusion after blasting the lichens with a year’s worth of Martian radiation in less than a day during a lab experiment — and the terrestrial lifeforms survived the process.

Learning Corner:

• Lichens are symbiotic organisms formed by a mutualistic relationship between fungi and photosynthetic partners (algae or cyanobacteria), known for their resilience in extreme environments.

Key Points on Lichens

• Structure and Composition:
  • Lichens are composite organisms where fungi provide structure and protection, while algae/cyanobacteria perform photosynthesis, producing nutrients.
  • Named as single species (e.g., Diploschistes muscorum, Cetraria aculeata), despite their symbiotic nature.
• Resilience and Adaptability:
  • Extremophiles: Thrive in harsh terrestrial environments like deserts, polar regions, and high altitudes, tolerating extreme temperatures (-50°C to 55°C), desiccation, and high radiation.
  • Survival Mechanisms: Low metabolic rates, anhydrobiosis (dormancy during water scarcity), and protective compounds (e.g., calcium oxalate, antioxidants) enable survival.
• Ecological Significance:
  • Pioneer Species: Colonize bare surfaces (rocks, soil), facilitating soil formation and ecosystem development through rock weathering and nitrogen fixation.
  • Bioindicators: Sensitive to air pollution, used to monitor environmental health (e.g., sulfur dioxide levels).
  • Biodiversity: Over 20,000 species globally, with ~3,000 in India, found in Himalayas, Western Ghats, and Northeast.

Source : Live Science

Q1. With reference to lichens, consider the following statements:

1. They are symbiotic associations involving fungi and algae or cyanobacteria.
2. They can survive in extreme environments, including outer space simulations.
3. All lichens contribute to nitrogen fixation.

Which of the statements given above is/are correct?
A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

Q2. With reference to the Bombay Stock Exchange (BSE), consider the following statements:

1. BSE was established in 1875 as the Native Share & Stock Brokers’ Association.
2. The BSE SENSEX comprises 1000 major companies reflecting market trends.
3. BSE adopted the T+1 settlement cycle, making its markets faster than many global counterparts. 

Which of the statements given above are correct?

1. 1 and 2 only
   B. 2 and 3 only
   C. 1 and 3 only
   D. 1, 2, and 3

Q3. Which of the following statements regarding the Counter-Cyclical Capital Buffer (CCyB) framework in India is/are correct?

1. The CCyB is maintained in the form of Common Equity Tier 1 (CET1) capital.
2. The RBI primarily uses the credit-to-GDP gap as an indicator for activating the CCyB.
3. As of April 2025, the RBI has activated the CCyB due to rising non-performing assets. 

Select the correct answer using the code below:

1. 1 and 2 only
   B. 2 and 3 only
   C. 1 and 3 only
   D. 1, 2, and 3

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’  Today’s – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs

Q.1) – d

Q.2) – a

Q.3) – a