Posts

RC

Our likes, dislikes and opinions on social media leave us vulnerable to psychological warfare There has been a lot of talk around the globe over the use of Facebook data by Cambridge Analytica (CA), a company partly owned by the U.S. billionaire hedge fund owner and Donald Trump backer, Robert Mercer. In India, the discussion has descended into a farcical wrangle between the Bharatiya Janata Party and the Congress on who used the company’s services. For good measure, Union Law and Information Technology Minister Ravi Shankar Prasad even warned Facebook and its CEO Mark Zuckerberg of “stringent action” including summoning him to India if it was found to be involved in the theft of data from Indians. All of this misses the real point. Data theft is not the issue. There is no need to steal the cornucopia of data that Facebook has accumulated on each one of us who uses the platform. It can be, and is, legally bought and used by marketers, businesses, researchers and anyone else who pays the social media giant for it. Contours of a profile Facebook (or Google for that matter) has information on where we live, our age, our gender, what our likes and dislikes are, who our online friends are, where we like to go out to eat, and where and when we travel. Facebook charges advertisers to target audiences using this knowledge, and the money from this is what has made Mr. Zuckerberg one of the wealthiest people on earth. What is new and potentially worrying is the spotlight CA has thrown on how this information can be used to create psychological profiles of Facebook users (or psychographic targeting as it has been described) and direct political messages to people in ways that could move and manipulate our deepest emotions and impulses. Two experimental studies show that this kind of psychological targeting can influence not just emotions but also behaviour. CA’s work for the Trump presidential campaign was based on two studies by Michal Kosinski, an assistant professor at Stanford University, U.S. Mr. Kosinski was approached by CA but declined to work for them. However, a Cambridge University researcher, Aleksandr Kogan, agreed to work for CA to build psychological profiles of Facebook users. Mr. Kosinski, as a PhD student at Cambridge, had devised a model to analyse the pages a person “liked” on Facebook and build a psychological profile of the person based on five characteristics including introversion, extroversion, neuroticism, openness and agreeableness. The model was based on the results of three experiments involving more than 3.7 million Facebook users. He and his colleagues first posted a personality quiz on Facebook and then tallied the results of the personality test with the pages that the test takers “liked”, which was then used to build a model to create psychological profiles of users based on the pages they “liked”. His team then created advertisements with messages targeted to a user’s psychological profile. For example, someone who was judged to be an extrovert would see a different version of an advertisement on Facebook than someone who was judged to be an introvert. They found that psychologically-targeted advertisements were more effective than non-targeted advertisements in persuading people to take some kind of action such as downloading an app or clicking on the advertisement than non-targeted advertisements. In a paper published in the Proceedings of the National Academy of Sciences of the United States of America , in 2017, Mr. Kosinski and his colleagues wrote that this kind of psychological targeting could “make it possible to influence the behaviours of large groups of people by tailoring persuasive appeals to the psychological needs of target audiences”. The holy grail of marketing and advertising lies in persuading people to take action, such as buying a product. The link between message and action has always been hard to determine. But Mr. Kosinski’s research appeared to provide a way to use a person’s digital footprint (in this case, a liked page on Facebook) to construct a psychological profile and create messages that seemed to change behaviour. “Tailoring persuasive appeals to psychological profiles of large groups of people allowed us to influence their actual behaviours and choices,” he wrote. If Mr. Kosinski’s research is accurate, all it takes to have a rough idea of a person’s personality is a single Facebook page ‘like’. For example, those who liked the singer Lady Gaga were on average likely to score more highly on the personality trait of openness and adjudged to be more intellectually curious and imaginative. So anyone hoping to use Facebook to target users with messages could get a list of users who liked Lady Gaga, and target them with messages that addressed their curiosity and imagination. Until recently, data on Facebook page ‘likes’ were publicly accessible. Now, they are no longer publicly accessible. But there are ways around this. Anyone who wants a list of Facebook users who like Lady Gaga need only take out an advertisement with a link asking Lady Gaga’s admirers to name their 10 favourite songs by the singer. Anyone who clicks the link is giving access to their Facebook profile and becomes a target for further advertising. In politics What are the political implications of this kind of psychological profile-based targeting? CA and its erstwhile head Alexander Nix worked for the Trump campaign as well as the one for his rival, Ted Cruz, also of the Republican Party. A presentation made by CA on its work in the Trump campaign that was leaked to The Guardian and Observer newspapers states that the firm “ingested data and audience profiles” and “devised communications to best promote a story to these individuals”. Voters were clearly getting targeted messages, but did this actually help change their voting intentions? This is not something that can be measured as there is no data linking people who saw a particular advertisement and the way they voted. CA worked on the Cruz campaign, but he lost. The firm began to work on the Trump campaign after he won the Republican nomination. There is no way of knowing the impact it had. Mr. Kosinski himself has expressed concern at the ways this kind of behaviour change communication could be put to use in political campaigns and written that “it could be used to covertly exploit weaknesses in their character and persuade them to take action against their own best interest”. The question then is not about which political parties in India did or did not use the services of CA. Or whether data were illegally acquired from Facebook users. The real issue is that we spill out our every like and dislike and opinion on every subject on platforms such as Facebook. The clues to our personalities revealed by our social media behaviour leave us vulnerable to psychological warfare from those who wish to influence our behaviour. Winning elections have always been about moving people at an emotional level. As every demagogue knows, if you can manipulate, rouse and orchestrate people’s emotions, you are halfway towards achieving political power. Social media has provided a new tool to achieve that.#FancyJ

NABARD

National Bank for Agriculture and Rural Development (NABARD) is an apex development bank for rural areas in India which meansthat it acts as a bank for other banks working for rural upliftment in India. It was established on 12 July 1982 by Act 61, 1981 ofparliament. Its headquarters is in Mumbai, Maharashtra.NABARD was established on the recommendations of the Committee to Review Arrangements for Institutional Credit for Agriculture andRural Development (CRAFICARD) set up by the Reserve Bank of India (RBI) under the chairmanship of Shri B. Sivaraman.  NABARD was set up to focus on rural India, like by increasing the credit flow for agriculture and other rural sectors. So it can be said ascountry’s specialized bank for Agriculture and Rural Development. Thus it is also a part of developing financial inclusion in the country Main Function:To provide and regulate credit and other facilities for the promotion and development of agriculture, small-scale industries, cottage andvillage industries, handicrafts and other rural crafts and other allied economic activities in rural areas with a view to promoting integratedrural development and securing prosperity of rural areas, and for matters connected therewith or incidental thereto. Other roles and functions of NABARD:NABARD gives high priority to projects formed under IRDP (Integrated Rural Development Programme);It refinances those institutions which provide credit to the developmental programmes in rural areas;It also refinances to the complete extent for those projects that are taken under the ‘National Watershed DevelopmentProgramme‘ and the ‘National Mission of Wasteland Development‘;Along with refinancing, NABARD also co-ordinates the rural credit financing activities;It prepares rural credit plans, annually, for all districts in the country;It recommends about licensing for RRBs and Cooperative banks to RBI and acts as theirregulator;It also supervises the RRBs and cooperative banks to ensure that the rural financing is done with farmers’ welfare;It also promotes research in rural banking, and the field of agriculture and rural development;It also works for the restructuring of credit institutions, and training and development of staff;It also supports the Self-help Group(SHG) which work for the poor; etc.  #FancyJ

April 2 CA

● World Autism Awareness Day: 2 April ● World Autism Awareness Day Theme “Empowering Women and Girls with Autism”. ● Kerala lifts their sixth Santosh Trophy ● Debjani Ghosh appointed as President of NASSCOM ● ISRO losses contact with communication satellite GSAT-6A ● Foundation Stone Of Naitwar Mori Hydro Electric Project Laid In Uttarakhand ● Mangaluru Airport Adjudged India's Cleanest Airport ● USA and South Korea Begin Joint Military Exercise- 'Foal Eagle' ● SIDBI Foundation Day- Launches 'Samridhi- virtual assistant' & ' Bankability Kit' ● Delhi becomes first city to roll-out Euro VI fuel ● India becomes world’s second largest mobile phone producer: ICA ● April 1 to 7 is observed as Prevention of Blindness Week in India. ● China’s first space station, Tiangong-1 is crashing down in to Earth. ● India is now the world’s No 1 almond importer ● 114th Permanent Indus Commission meeting held in Delhi ● Lt Gen Harpal Singh Takes Charge as Director General Border Roads .#RAJKUMAR

April 1 CA

● The Reserve Bank Of India | 83rd Establishment Day ● India Becomes World’s Second Largest Mobile Phone Producer ● West Bengal Launches Rupashree scheme for marriage of poor girls ● Accessible Tourism : Nepal launches its first accessible trekking trail ● India receives first LNG consignment from United States ● Ajit Singh named new head of BCCI’s anti-corruption unit ● Meeting Of PIC Between India And Pakistan Held In New Delhi ● Mithali Raj Adjudged ‘Sportsperson Of The Year ● Kerala to host Asia’s largest startup conclave ‘Huddle Kerala’ ● Kotak becomes first bank to roll out AI-run voicebot ● RK Singh lays foundation stone of Naitwar Mori Hydro Electric Project in Uttarakhand ● Russia successfully tested its latest intercontinental ballistic missile (ICBM) Sarmat. ● Pakistan successfully test fires Submarine Launched Cruise Missile BABUR ● Vineet Joshi is First National Testing Agency Director General ● Delhi Commission for Women (DCW) has started organising ‘Rape Roko Mahila Adalats’ #RAJKUMAR

BANKING ABBREVIATIONS

1.   PSBs: PUBLIC SECTOR BANKS 2.   SNBCs: SCHEDULE NON COMMERCIAL BANKS 3.   SENSEX: SENSITIVE INDEX OF STOCK EXCHANGE 4.   GNP: GROSS NATIONAL PRODUCT 5.   KYC: KNOW YOUR CUSTOMER 6.   RTGS: REAL TIME GROSS SETTLEMENT 7.   NEFT: NATIONAL ELECTRONIC MONEY TRANSFER 8.   EFT: ELECTRONIC FUND TRANSFER 9.   CBS: CORE BANKING SOLUTIONS 10.LIBOR: LONDON INTERBANK OFFERED RATE 11.MIBOR: MUMBAI INTERBANK OFFERED RATE 12.MIBID: MUMBAI INTERBANK BID RATE 13.SARFAESI: SECURITISATION AND RECONSTRUCTION OF FINANCIAL ASSETS AND ENFORCEMENT OF SECURITY INTEREST 14.CAMELS: CAPITAL ADEQUECY RATIO, ASSET QUALITY, MANAGEMENT OF EFFECTIVENESS, EARNING OF PROFITABILITY, LIQUIDITY, SYSTEM AND CONTROLS 15.CAR: CAPITAL ADEQUECY RATIO 16.FIIs: FOREIGN INSTITUTIONAL INVESTMENTS 17.FDI: FOREIGN DIRECT INVESTMENT 18.IPO: INITIAL PUBLIC OFFERING 19.MICR: MAGNETIC INK CHARACTER READER 20.BIRD: BANKERS INSTITUTE OF RURAL DEVELOPMENT 21.IBA: INDIAN BANK ASSOCIATION 22.BPLR: BENCHMARK PRIME LENDING RATE 23.ICICI: INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA 24.HDFC: HOUSING DEVELOPMENT FINANCE CORPORATION 25.SWOT: STRENGETH, WEEKNESSES, OPPORTUNITIES AND THREATS 26.SWIFT: SOCIETY FOR WORLDWIDE INTERBANK FINANCIAL TELECOMMUNICATION 27.FERA: FOREIGN EXCHANGE REGULATORY ACT 28.FEMA: FOREIGN EXCHANGE MANAGEMENT ACT 29.CASA: CURRENT AND SAVING ACCOUNT 30.NDTL: NET DEMAND AND TIME LIABILITIES 31.NASDAQ: NATIONAL ASSOCIATION FOR SECURITIES DEALERS AUTOMATED QUOTATIONS 32.CRISIL: CREDIT RATING AND INVESTMENT SERVICES INDIA LIMITED 33.CIBIL: CREDIT INFORMATION BUREAU OF INDIA LIMITED 34.NAV: NET ASSET VALUE 35.ICRA: INDIAN CREDIT RATING AGENCY 36.CARE: CREDIT ANALYSIS AND RESEARCH LIMITED 37.WMAs: WAYS AND MEANS ADVANCES 38.ALM: ASSET LIABILITY MANAGEMENT 39.INFINET: INDIAN FINANCIAL NETWORK 40.OLTAS - On-line Tax Accounting System (OLTAS) for Direct Taxes 41.TIN - Tax Information Network (TIN) 42.IMPS - Interbank Mobile Payment Service (IMPS) or Immediate Payment Service 43.CDR- Corporate Debt Restructuring 44.CAD- Capital Account Deficit 45.REITs: Real Estate Investment Trusts 46.InvITs: Infrastructure Investment Trusts 47.ALM- Asset Liability Management 48.ASBA: Application Supported by Blocked Amount 49.CBS: Core Banking Solution 50.PIN: Personal Identification Number 51.CCEA – Cabinet Committee on Economic Affairs 52.CECA - Comprehensive Economic Cooperation Agreement 53.CEPA – Comprehensive Economic Partnership Agreemeny 54.DTAA – Double Taxation Avoidance Agreement 55.ECBs - External Commercial Borrowings 56.EFSF – European Financial Stability Facility 57.FINO- Financial Inclusion Network Operation 58.FIPB – Foreign Investment Promotion board 59.FSLRC – Financial Sector Legislative Reforms Commission 60.CRAR: Capital to Risk-weighted Assets Ratio 61.LCR: Liquidity Coverage Ratio 62.TARC - Tax Administration Reform Commission 63.GIRO - Government Internal Revenue Order 64.FRBMA: Fiscal Responsibility and Budget Management Act 65.AMFI- Association of Mutual Fund in India. 66.TIEA – Tax Information exchange Agreement 67.GAAR - General anti avoidance rule 68.GSLV - Geo-Synchronous Launch Vehicle 69.PPP – Public Private Partnership & Purchasing Power parity 70.PSLV – Polar Satellite Launch vehicle 71.TAPI - Turkmenistan-Afghanistan-Pakistan-India. 72.QFI -Qualified Foreign Investors 73.AD-Authorized Dealer. 74.ASSOCHAM-Associated Chambers of Commerce and Industry of India. 75.BCSBI-Banking Codes and Standards Board of India. 76.BIS-Bank for International Settlements. 77.CDS-Credit Default Swap. 78.CEPA-Comprehensive Economic Partnership Management. 79.FIMMDA-Fixed Income Money MARKETS and Derivatives Association. 80.FPI-Foreign Portfolio Investment. 81.IBRD-International Bank For Reconstruction And Development. 82.UIDAI-Unique Identification Authority of India.#ARCHANA

RC and words list

Amendments to the National Medical Council Bill don’t go far enough to address concernsThe Union Cabinet this week approved six out of the dozens of changes to the contentious National Medical Commission (NMC) Bill that were suggested by a Parliamentary Standing Committee earlier this month. These changes address some of the loudest criticisms of the Bill. Among them, the final year MBBS exam is now merged with an exit exam for doctors, and a contentious bridge course for AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha, Homeopathy) practitioners has been axed. Health-care experts had recommended other modifications, which the Cabinet ignored. For example, despite the Cabinet’s amendments, the NMC, the regulatory body that will replace the Medical Council of India, will be heavily controlled by the government. Its members are to be picked by a search committee headed by the Cabinet Secretary, while the Central government is to be the appellate body for those aggrieved by the NMC’s decisions. The parliamentary committee had batted for an independent appellate body. The amendments cleared by the Cabinet also increase State representation in the NMC from three part-time members to six, in what seems like a gesture to please the States. Contrast this with the parliamentary committee’s recommendation to include 10 State representatives, given India’s vastness. Another amendment that doesn’t go far enough is the decision to raise the proportion of private college seats for which fees will be regulated from 40% to 50%. The fees for unregulated seats could then skyrocket, pushing poorer medical aspirants out of the system. Despite these deficiencies, if passed by Parliament, the legislation will mark a new era for medical education in India. The next step will be to design rules and regulations that capture the intent of this law. This itself will be a massive challenge. How, for one, will the logistical difficulty of conducting a common final year MBBS examination across the country be overcome? Multiple-choice questions are easy to administer, but testing the range of theoretical knowledge and practical skills expected of medical graduates is more difficult. Throw in the enormous inter-State variations in medical education across India, and the challenge is obvious. Lawmakers will have to tackle this gigantic task in a slow and phased manner. Another concern is that under the new amendments States now have the freedom to implement an AYUSH bridge course, even if no longer mandatory. How will the Centre ensure the quality of such courses to prevent a new set of poorly trained doctors from emerging? The coming days may see many more protests against the NMC Bill, perhaps delaying its passage and prompting further discussion. For a Bill that marks the first major reform in medical education since 1956, such an extended debate is not a bad thing.Words Listcontentious (adjective) – controversial, debatable, disputed.bridge course (noun) – a course could give you a second chance to pursue your first career choice like dental BDS graduates, alternative-medicine (homeopathy, ayurveda & etc) graduates to become MBBS doctors/ to prescribe modern medicines (to address shortage of doctors).axe (verb) – cancel, withdraw, abandon/terminate.appellate (adjective) – (of a court) dealing with cases on appeal to review the decision of a lower court. aggrieve (verb) – oppress, treat unfairly, distress/upset.bat for (verb) – support, help, aid.gesture (noun) – action, deed; sign/indication.please (verb) – satisfy, gratify, make someone feel good.vastness (noun) – hugeness, immensity, enormity/magnitude.go far (phrase) –  succeed, prosper, make progress.skyrocket (verb) – increase, rise, escalate.deficiency (noun) – imperfection, weakness, shortcoming.logistical (adjective) – relating to organization and planning.administer (verb) – manage, operate, regulate.obvious (adjective) – clear, apparent, evident.#FancyJ

Bitcoins

What is Bitcoin? Bitcoin is a type of virtual currency, created in 2009 by an unknown person named Satoshi Nakamoto. Transactions in this system are made with no middle men, banks or regulator agency. They are a completely decentralized form of money and aren’t backed by any government. People can use this digital currency for all sorts of real transactions.Why Bitcoins?Bitcoins can be used to buy merchandise anonymously. In addition, international payments are easy and cheap because there is no transaction fee and bitcoins are not tied to any country or subject to regulation. Some people just buy bitcoins as an investment, hoping that they’ll go up in value.Acquiring Bitcoins Buy on an Exchange: Several marketplaces called “bitcoin exchanges” allow people to buy or sell bitcoins using different currencies. Mt. Gox is the largest bitcoin exchange. Transfers: People can send bitcoins to each other using mobile apps or their computers. It’s similar to sending cash digitally. Mining: People compete to “mine” bitcoins using computers to solve complex mathematical problems. This is how bitcoins are created. Currently, a winner is rewarded with 25 bitcoins roughly every 10 minutes. Owning Bitcoins Bitcoins are stored in a “digital wallet,” which exists either in the cloud or on a user’s computer. The wallet is a kind of virtual account that allows users to send or receive bitcoins, pay for goods or save their money. Unlike bank accounts, bitcoin wallets are not insured. Anonymity Though each bitcoin transaction is recorded in a public log, names of buyers and sellers are never revealed – only their wallet IDs. While that keeps bitcoin users’ transactions private, it also lets them buy or sell anything without easily tracing it back to them. That’s why it has become the currency of choice for people online buying drugs or other illicit activities. Future of Bitcoins Confidence in bitcoins has grown after a US Senate committee considered it as a legitimate financial service at a meeting in October 2013. Within the time span of 5 years the value of bitcoin rose from few cents to 1000 USD. Still it is too early to say anything about the future of bitcoins. China has banned its banks from handling bitcoin transactions, saying they have no legal status and should not be used as a currency. The European Banking Authority has already warned about the potential risks of using Bitcoins. Bitcoins in India Bitcoin is catching the attention of India too. Many investors are considering it as a good investment option compared to a traditional currency because it has a limited supply. Others are downloading the software to “mine” this currency. Across India, some of the retail outlets have expressed their willingness to accept Bitcoins. The Reserve Bank of India is closely watching the growth of bitcoins but is not currently regulating the currency. #FancyJ

IMPORTANT BANKING TERMS

Ø Base Rate:-The Base Rate is the minimum interest rate of a Bank below which it cannot lend, except for DRI advances, loans to bank's own employees and loan to banks' depositors against their own deposits. (i.e. cases allowed by RBI). Ø Bridge Loan:-A loan made by a bank for a short period to make up for a temporary shortage of cash.  Bridge loan covers this period between the buying the new and disposing of the old one. Ø Credit Authorization Scheme:-Credit Authorization Scheme was introduced in November, 1965 when P C Bhattacharya was the chairman of RBI. Under this instrument of credit regulation RBI as per the guideline authorizes the banks to advance loans to desired sectors Ø Open Market Operations:-An open market operation is an instrument of monetary policy which involves buying or selling of government securities from or to the public and banks. Ø Moral Suasion:-Moral Suasion is just as a request by the RBI to the commercial banks to take so and so action and measures in so and so trend of the economy. RBI may request commercial banks not to give loans for unproductive purpose which does not add to economic growth but increases inflation. Ø Special Drawing Rights (SDRs):-It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary Fund in an attempt to increase international liquidity, and now forming a part of countries official forex reserves along with gold, reserve positions in the IMF and convertible foreign currencies. Ø Bouncing of a cheque: Where an account does not have sufficient balance to honour the cheque issued by the customer, the cheque is returned by the bank with the reason "funds insufficient" or "Exceeds arrangement". This is known as 'Bouncing of a cheque'. Ø Demat Account: The term "demat", in India, refers to a dematerialised account for individual Indian citizens to trade in listed stocks or debentures. Ø Endorsement: When a Negotiable Instrument contains, on the back of the instrument an endorsement, signed by the holder or payee of an order instrument, transferring the title to the other person, it is called endorsement. Ø Merchant Banking : When a bank provides to a customer various types of financial services like accepting bills arising out of trade, arranging and providing underwriting, new issues, providing advice, information or assistance on starting new business, acquisitions, mergers and foreign exchange. Ø Money Laundering :The process of creating the appearance that large amounts of money obtained from serious crimes, such as drug trafficking or terrorist activity, originated from a legitimate source. Ø Mortgage: Transfer of an interest in specific immovable property for the purpose of offering a security for taking a loan or advance from another. It may be existing or future debt or performance of an agreement which may create monetary obligation for the transferor (mortgagor). Ø GAAR: The full form of GAAR is : General Anti-Avoidance Rules. Tax Avoidance is an area of concern across the world. The rules are framed in different countries to minimize such avoidance of tax. It is a set of general rules enacted so as to check the tax avoidance. Ø BPLR: In banking parlance, the BPLR means the Benchmark Prime Lending Rate. However, with the introduction of Base Rate (explained below), BPLR has now lost its importance and is made applicable normally only on the loans which have been sanctioned before the introduction of Base Rate (i.e. July 2010). Ø Prime Lending Rate (PLR): The rate at which banks lend to their best (prime) customers. It is usually less than normal interest rate. Ø Wholesale Banking: Wholesale banking is different from Retail Banking as its focus is on providing for financial needs of industry and institutional clients. Ø Capital Adequacy Ratio (CAR):- Capital adequacy ratio measures the amount of a bank’s capital expressed as a percentage of its credit exposure. Globally, the capital adequacy ratio has been developed to ensure banks can absorb a reasonable #ARCHANA

RC and words list

The HRD Ministry must pull out all the stops to restore trust in the CBSE exam process The Central Board of Secondary Education faces a serious erosion of credibility with the leak of its annual examination question papers on Economics for Class 12 and Mathematics for Class 10. Thousands of students are naturally frustrated that their best shot at these papers has come to nought; they must now make another strenuous effort in a re-examination. Clearly, the Ministry of Human Resource Development failed to assign top priority to secrecy and integrity of the process, considering that its standard operating procedure was easily breached, and the questions were circulated on instant messaging platforms. Yet, the problem is not new. State board question papers have been leaked in the past. When the HRD Ministry was asked in the Lok Sabha three years ago what it intended to do to secure the CBSE Class 12 and 10 examinations, Smriti Irani, who was the Minister then, asserted the inviolability of the process, since the question papers were sealed and stored in secret places and released to authorised officials with a window of only a few hours. In addition, the board has dedicated secrecy officers for each region. But the protocol has failed, and HRD Minister Prakash Javadekar should conduct a thorough inquiry to get at the truth and initiate remedial steps without delay. One of the options is to institute a National Testing Agency, although it was originally supposed to take charge of entrance examinations in the first phase. State school boards also need help to reform systems. A major leak such as the one that has hit the CBSE raises a question often debated in academic circles: is a high-stakes test the best option? To some sociologists, the use of a quantitative indicator with rising importance for social decision-making makes it more vulnerable to corruption pressures, and distorts and undermines the very processes it is intended to monitor. That seems to be an apt description of what has taken place. Today, what is needed is a credible testing method to assess a student’s aptitude and learning. But the answer may lie not in one all-important examination, but in multiple assessments that achieve the same goal. Such an approach will end the scramble for high scores in a definitive board examination, and the exam stress that the government has been trying to alleviate. It will also limit the fallout of a leak. These and other options need to be debated by academic experts. More immediately, the CBSE has to restore faith in its processes. The board went into denial mode when the leaks were first reported, but subsequently decided to acknowledge the problem and ordered a fresh examination in the two subjects. In the current scheme, the annual exercise is all-important to students. Everything should be done to inspire total confidence in the board examinations.Word Listpull out all the stops (phrase) – make a very great effort, try hard, strive (to achieve something).erosion (noun) – destruction, deterioration, spoiling/weakening.come to naught (phrase) – fail, founder, be unsuccessful (Naught -US English & Nought-British English).strenuous (adjective) – difficult, hard/tough, taxing/demanding.breach (verb) – break, contravene, violate.assert (verb) – declare, state/announce, claim.window (noun) – interval, opening, right time/moment.get at (phrasal verb) – access, gain access to, reach.remedial (adjective) –  reparative, corrective, restorative.high-stakes test (noun) – in high stakes testing method, test results have significant consequences and are tied to the performance of students on the test. For example, test results are used to determine an important outcome (either reward or punishment) for both test taker & teacher.distort (verb) – misrepresent, falsify, misreport.undermine (verb) – weaken, compromise, diminish/reduce.credible (adjective) – convincing, acceptable; reasonable.scramble (verb) – struggle, competition/contention; rush/hurry.alleviate (verb) – reduce, lessen, mitigate.fallout (noun) – adverse results; repercussions, after-effects.#FancyJ

BASEL ACCORDS

The Basel Accords refer to the banking supervision Accords (recommendations on banking regulations) issued by the BaselCommittee on Banking Supervision (BCBS). They are called the Basel Accords as the BCBS maintains its secretariat at theBank forInternational Settlements (BIS) in Basel, Switzerland and the committee normally meets there. The Basel Accords is a set ofrecommendations for regulations in the banking industry.Upto now three accords have been published – BASEL IBasel I norms were published in 1988 which asked to set a minimum capital requirements for banks. It defined capital requirement andstructure of risk weights for banks. The goal was to minimize credit risk i.e. the defaults on a credit or loan when the borrower is unableto pay back to the bank.The 1988 Accord called for a minimum capital ratio of capital to risk-weighted assets of 8% to be implemented by the end of 1992.Ultimately, this framework was introduced not only in member countries but also in virtually all other countries with active internationalbanks.BASEL IIAfter Basel I, Basel II norms were published in 2004.Unlike the goal of Basel I norms, Basel II focused on how much of the bank’s capital, bank must keep aside in order to reduce theircredit risks. So in case if a bank is exposed to a greater risk, it needs to keep aside a greater capital to guard against the risks.Basel II was to be implemented in early 2008.The revised framework comprised three pillars, namely:minimum capital requirements, which sought to develop and expand the standardised rules set out in the 1988 Accord;supervisory review of an institution’s capital adequacy and internal assessment process; andeffective use of disclosure as a lever to strengthen market discipline and encourage sound banking practices.BASEL IIIAfter Basel II, Basel III norms were published in 2010. They have been designed to address the shortcomings of Basel II after the 2008financial crisis that the world faced.In September 2010, the Group of Governors and Heads of Supervision announced higher global minimum capital standards forcommercial banks.According to Basel Committee, “Basel III” is a comprehensive set of reform measures, developed by the Basel Committee onBanking Supervision, to strengthen the regulation, supervision and risk management of the banking sector.These measures aim to:improve the banking sector’s ability to absorb shocks arising from financial and economic stress, whatever the sourceimprove risk management and governancestrengthen banks’ transparency and disclosures.The three pillars of Basel Norms are unchanged in Basel III also.Basel III was to be implemented until 31 March 2018 which is extended to 31 March 2019.Basel III is not to be succeeded by Basel II, rather Basel III will work alongside Basel I and Basel II.#Saarumathi