11 August 2025
(Current Affairs Notes - Prelims)

Universal Bank Licence

• A Universal Banking Licence permits a financial institution to offer a wide array of banking services, including commercial and investment banking, under a single umbrella.

• Recently, the Reserve Bank has granted approval to AU Small Finance Bank for transitioning from a small finance bank (SFB) to a universal bank.

• What is a Universal Bank?

  • • A full-service financial institution operating across the entire spectrum of banking activities.

    • Accepts deposits, provides loans (retail & corporate), and offers investment & wealth management services.

    • Must follow strict governance standards, maintain higher capital adequacy norms, and adopt advanced risk management systems.

    • Unlike small finance banks, universal banks face fewer operational restrictions, allowing wider market reach.

    • Can diversify revenue streams and expand into corporate banking, foreign exchange, and high-value retail segments.

• What is a Small Finance Bank (SFB)?

  • • SFBs are specialized banks that serve underserved groups like small businesses, marginal farmers, micro & small industries, and informal sector entities.

    • By regulation, 60% of Adjusted Net Bank Credit must go to priority sectors.

    • At least 25% of branches must be located in unbanked rural areas.

    • At least 50% of loans must be of small-ticket size (below a specified limit).

    • SFBs have narrower operational scope, but strong social development role.

• Last time, the universal banking licences were granted in 2014 to Bandhan Bank and IDFC Bank, which later became IDFC First Bank.

 Allographa effusosoredica

• It is a new species of lichen discovered in the Western Ghats.

• Lichen is a symbiotic association a fungus (called the mycobiont) and a photosynthetic partner (called the photobiont), which can a green alga.

• Lichens are very useful as a source of drugs, medicines, perfumery, food stuff, dyes, bio-monitoring and other useful compounds.

• These invade bare areas and contribute to soil formation. They are used as bio-monitors for Air pollution.

SheLeads

• A capacity-building programme by the UN Women

• To advance gender equality in public and political leadership by supporting women leaders to participate in elections.

• Recently, the second edition of SheLeads was inaugurated in India.

• UN Women is the lead UN entity on gender equality, created in July 2010.

Awaza Programme of Action (2024-2034)

• It is related to Landlocked Developing Countries (LLDCs).

• It was adopted by the United Nations General Assembly in December 2024.

• This APoA draws on lessons learned from the Vienna Programme of Action (2014–2024).

• The objective of the both is to place LLDCs on an inclusive path to sustainable development, while safeguarding them against future shocks and disasters.

• Landlocked Developing Countries (LLDCs) are locked out: with no direct territorial access to the sea, they struggle with international trade, connectivity, and economic development.

• The countries classified as LLDCs: Afghanistan, Armenia, Azerbaijan, Bhutan, Plurinational State of Bolivia, Botswana, Burkina Faso, Burundi, Central African Republic, Chad, Eswatini, Ethiopia, ​Kazakhstan, Kyrgyzstan, Lao PDR, Lesotho, Malawi, Mali, Mongolia, Nepal, ​Niger, North Macedonia, Paraguay, Republic of Moldova, Rwanda​​, South Sudan, Tajikistan, Turkmenistan, Uganda, Uzbekistan, Zambia, and Zimbabwe.

• Awaza is a place located in Turkmenistan. The Third United Nations Conference on Landlocked Developing Countries (LLDC3) opened in Awaza.

 Virgin Polymer

• It refers to a plastic material that is produced directly from raw petrochemical feedstocks like natural gas or crude oil, and has not been previously used or processed.

• Examples include Polyethylene (PE), Polypropylene (PP), Polyethylene terephthalate (PET), Polystyrene (PS), Polycarbonate (PC).

• These offer uniform properties, free from impurities & superior mechanical strength. But are considered harmful for environment, with higher carbon footprint compared to recycled polymers.

• According to a recent study, India contributes to 4% of production of four Virgin Polymers with China being the largest producer.