4th May 2026

Explanation -
SMA primarily affects voluntary muscles responsible for movement and does not impact involuntary muscles, such as those in the heart and digestive system.

This distinguishes SMA from other muscle and nerve disorders that may affect involuntary muscle function.

SMA is indeed classified into five subtypes (Type 0, 1, 2, 3, and 4) based on the age at which symptoms begin, as well as the severity and impact on life expectancy.

Although SMA currently has no cure, treatments such as gene replacement therapy and disease-modifying therapy, approved by the U.S. FDA, aim to manage symptoms and improve the disease's progression.

Explanation -
It is part of the National Critical Mineral Mission (NCMM), which is aimed at building the domestic capacity of and supply chain resilience in critical minerals.

Time Period: The Scheme will have a tenure of six years from Financial Year 2025-26 to Financial Year 2030-31.

Features —
Eligible feedstock is e-waste, Lithium Ion Battery (LIB) scrap, and scrap other than e waste and LIB scraps.

Expected beneficiaries will be both large, established recyclers, as well as small, new recyclers (including start-ups), for whom one-third of the scheme outlay has been earmarked.

It is applicable to investments in new units as well as expansion of capacity and modernisation and diversification of existing units.

It provides incentive for the recycling value chain, which is involved in the actual extraction of critical minerals, and not the value chain involved in only black mass production.

The incentives include a 20% capital subsidy on plant and machinery for projects that commence production within the stipulated timeframe and an operational subsidy tied to incremental sales.

The operational support will be provided in tranches—40% in the second year and 60% in the fifth year—on meeting specific sales thresholds.

To ensure wider participation, the total incentive has been capped at ₹50 crore per large entity and ₹25 crore per small entity, with limits on operating subsidies of ₹10 crore and ₹5 crore, respectively.

Explanation -
SACHET (meaning "alert") is an Integrated Alert System designed to deliver disaster and emergency warnings directly to mobile users in geo-targeted areas via SMS.

Institutional Framework —
Launched by the Department of Telecommunications (DoT)
Developed in collaboration with the National Disaster Management Authority (NDMA)

Aims to strengthen real time disaster communication across India

Purpose and Scope —
Provides timely alerts during:

• Natural disasters (cyclones, earthquakes, floods)
• Man-made emergencies (gas leaks, chemical hazards, wars)

Ensures rapid dissemination of critical information to citizens

How the System Works?

• Uses cellular network towers to broadcast alerts
• Works as a one-way communication system
• Does not require internet connectivity
• Can deliver messages to billions of users within seconds (if connected to network)
• Alerts can be nationwide or location-specific

Coverage and Reach —
Operational across all 36 States and Union Territories
Has delivered over 134 billion SMS alerts
Supports communication in 19 Indian languages

Test Use in India —
Around 11:40 AM on May 2, 2026, smartphones across India emitted a loud alert sound with vibrations and a pop up message titled "extremely severe alert", as part of a nationwide test of the cell broadcast system.

Similar systems are already used in countries like Japan for tsunami and disaster warnings. India's recent test marks one of the largest-scale implementations of this technology.

Significance —
Enhances disaster preparedness and response
Under the UN's "Early Warnings for All" initiative, which International Telecommunication Union (ITU) helps implement, cell broadcast is seen as a key tool to ensure people receive timely, accurate alerts.

Improves last mile connectivity of emergency alerts
Builds a more resilient and responsive public communication system in India.

Explanation -
In 2013, a leading global financial services firm Morgan Stanley identified five emerging market economies—India, Indonesia, Brazil, South Africa, and Turkey—as the "Fragile Five" due to their vulnerable currencies.

During this period, their currencies saw sharp declines against the US dollar, including the Indian rupee, Indonesian rupiah, Brazilian real, South African rand, and Turkish lira.

Role of US Monetary Policy —
The primary trigger behind this depreciation was the rollback of Quantitative Easing (QE) by the Federal Reserve.

Under QE, low interest rates in the US encouraged investors to borrow cheaply in dollars and invest in higher-yielding emerging markets. However, when the US signalled tightening of monetary policy, capital flows reversed as investors shifted funds back to safer US assets like government bonds.

Underlying Structural Weakness —
These economies were particularly affected because they ran current account deficits—importing more than they exported—and relied heavily on foreign capital inflows to finance this gap.

When global investment flows reversed, the demand for their currencies fell sharply relative to the US dollar, leading to significant depreciation.

Explanation -
The Expected Credit Loss (ECL) framework is a method used by banks to estimate possible future losses from loans and other credit exposures.

It requires banks to make provisions not only after a loan turns bad, but also on the basis of expected future credit risk.

At present, Indian banks broadly follow the incurred loss model, where provisions are made after signs of stress appear or when a loan becomes a non-performing asset (NPA).

Under the ECL framework, banks will follow a more forward-looking approach. This means they will assess the probability of default, possible loss if default occurs, and exposure at the time of default.

The RBI's new norms will come into effect from April 1, 2027. They are broadly aligned with global accounting practices such as IFRS 9, which was adopted internationally after the global financial crisis to make banking systems more resilient.

Three-Stage Asset Classification -

• Stage I includes loans with low or no significant increase in credit risk. For these assets, banks will recognise provisions based on 12 month expected credit loss.
• Stage II includes loans where credit risk has increased significantly, although they have not yet become NPAs. For these loans, banks will have to make provisions based on lifetime expected credit loss.
• Stage III includes credit-impaired assets or NPAs. These are high-risk loans where banks will also have to recognise lifetime expected credit loss.

This classification marks a major shift because banks will now have to provide more for stressed loans that have not yet crossed the traditional 90-day overdue threshold for NPAs.