Descriptive Prep: Brajesh Mohan

What is a loan write-off and why do banks do it? What's the difference between Write off and Waive off? Banks wrote off more than Rs 10 lakh crore in loans over the last five years, RBI data show. While public sector banks reported the lion’s share of write-offs at Rs 734,738 crore, private sector banks were not far behind in bringing down their non-performing assets (NPAs). Pvt banks accounted for Rs 2.74 lakh crore of the write-offs during this period. They have been able to recover only 13% (Rs 1,32,036 crore) of the Rs 10,09,510 crore ($123.86 billion) they wrote off Among private banks, ICICI Bank’s reduction in NPAs due to write-offs was Rs 50,514 crore in the last five years. Axis Bank wrote off Rs 49,715 crore and HDFC Bank Rs 34,782 crore during the period, according to the RBI. Among individual public sector banks, reduction in NPAs due to write-offs in the case of State Bank of India Rs 204,486 crore in the last five years, Punjab National Bank Rs 67,214 crore and Bank of Baroda Rs 66,711 crore. What is a loan write-off? Writing off a loan essentially means it will no longer be counted as an asset. By writing off loans, a bank can reduce the level of non-performing assets (NPAs) on its books. An additional benefit is that the amount so written off reduces the bank’s tax liability. Why do banks resort to write-offs? The bank writes off a loan after the borrower has defaulted on the loan repayment and there is a very low chance of recovery. The lender then moves the defaulted loan, or NPA, out of the assets side and reports the amount as a loss. After the write-off, banks are supposed to continue their efforts to recover the loan using various options. They have to make provisioning as well. The tax liability will also come down as the written-off amount is reduced from the profit. Loan Write-off vs Loan Waive off? A loan waive-off is a complete cancellation of a loan account. This means that the borrower is free from that particular debt. While Lenders write-off loans to clean up the balance sheet. But, the loan account stays in their books as they hope to recover it at a later date. When a loan is waived-off, the bank will not attempt to take any legal action against the borrower to recover the loan. While A loan write-off means that the loan account is not closed, which means that the lender can try to recover the loan amount with the help of a legal entity. A loan waive-off is a facility provided by the government to farmers at times of natural calamities. #newsexplained

❇️ Why Descriptive is Game Changer in RBI Grade B exam? Out of 300 Marks - 200 marks (100 - English + 50-50 in ESI and Finance) are from Descriptive section, means 2/3rd from Descriptive and 1/3rd from Objective Section. But a normal candidate, spends around 2/3rd time preparing for Objective section and not even 1/3rd for Descriptive Section, now someone will say that even preparing for objective is also preparing for Descriptive, yes but in actual it's only 30%. This is where a difference is created between a Non-UPSC and UPSC. Descriptive Skill is about - Your Content/Clarity about question, Writing only which has been asked, Completing the Paper within time, fewer grammatical and spelling mistakes. So without practice it's not going to happen automatically, saying this based on experience. You will feel this once you clear mains and haven't practiced anything before and RBI takes mains exam in 20-25 days which is not even bare minimum days to practice and get command. These days many people are able to type 2000 words in stipulated time, so it's not 2021 anymore, people have made mindset and now they are completing so if you are not able to then definitely marks will be less. ✅ So what to do, Step - 1. Don't think like once I will complete the syllabus, then practice, this could have worked 6 months before but not anymore. Write answers after completing the chapters, don't wait for the completion of whole syllabus. Step - 2. Know the format and Basics of Answer Writing and Descriptive English Writing. Generally in Answer writing we write in Points and in Essay we write in Paragraphs, although there is no such rule except for Precis writing where you have to write in single paragraph. - Follow Introduction - Body - Conclusion -Inside Introduction of Answer, Start with Definition or Any related Data from any report you know. - Same way in essay, you can start with Quote, Data, Definition. - Dont forget to conclude your essay and Answers Step - 3. Word Limit - You should stick to word limit, as you shouldn't cross it and also there may be people whose typing speed is not so good, for them writing all the 4 answers are must so maintain 80% word limit or 75% for all questions so that you can complete the paper within time. 4. Read the Questions carefully, Understand it and then write, many a times, questions are in multiple part and demands information related to all the parts but we miss 1 or more parts and losse marks ultimately. Step - 5. Fix time for each questions based on given time, like 25 min each for 15 marks and 20 min each for 10 marks questions and you should read the question, understand it, make a model and then answer under this time only. Make a mindset, I will not exceed this time limit, whatever written i will conclude there itself (it may sound wrong but with practice you will start completing the questions on time). Step - 5. Proofreading - Under 25 min or 20 min, you should also need to devote 2-3 mins for checking grammatical or spelling mistakes in your answers or essay. This is must do activity but you can do it only when you have good speed otherwise you won't have to do this activity. Step - 6. In Descriptive English - Essay is only 40 Marks and rest 60 Marks comes from Precis and Reading Comprehension, so in the name of practice do just keep practicing essay and be happy about it. ✅ What are the Sources:- For Essay - I have already given many topics for different exams available in channel as well as on my website brajeshmohan.in, in future too i will keep giving topics. For Answer Writing - There are two possible ways, One you should create 5-6 questions by yourself from each chapter after completing and second you can also take questions from my website and also many telegram channels created by those who have cleared or have experience about the exam. For Precis: All the Editorial of The Hindu, BS, BL, Forbes etc are the content of Precis. Tools - Notepad and Grammarly. Thank You, Brajesh Mohan 😊 #answerwriting

This year at CoP27, finance Climate Sustainability was one of the most discussed Topic. 👉 What is the USD 100 Billion Target? In 2009, at the UNFCCC COP15 (held in Copenhagen), The developed country parties, to achieve meaningful mitigation actions and transparency on implementation, jointly set a target of USD 100 billion a year by 2020 to address the needs of developing countries. The climate finance goal was then formally recognized by the UNFCCC Conference of the Parties at COP16 in Cancun. At COP21 in Paris, Parties extended the $100 billion goals through 2025. After COP26 there was a consensus that developed nations will double their collective provision of adaptation finance from 2019 levels by 2025, in order to achieve this balance between adaptation and mitigation. Other Source - Carbon Credit, Green Climate Fund (GCF) Q. What is climate Finance and various sources to finance green projects? Discuss it's significance and challenges associated with it. #answerwriting

India’s First Sovereign Green Bonds Framework Recently, the Union Minister for Finance & Corporate Affairs has approved the final Sovereign Green Bonds Framework of India. Sovereign Green Bonds will be issued for mobilising resources for green projects. What is Sovereign Green Bonds Framework? The Framework comes close on the footsteps of India’s commitments under “Panchamrit” as elucidated by the Prime Minister at Conference of Parties (COP) 26 at Glasgow in November 2021. It will further strengthen India’s commitment towards its Nationally Determined Contribution (NDCs) targets, adopted under the Paris Agreement. Green Finance Working Committee (GFWC) was constituted to validate key decisions on issuance of Sovereign Green Bonds. The framework has been rated ‘Medium Green’, with a “Good” governance score by a Norway-based independent second opinion provider CICERO. The ‘Medium Green’ rating is assigned ‘to projects and solutions that represent significant steps towards the long-term vision, but are not quite there yet. All fossil fuel-related projects have been kept out of the framework, along with biomass-based renewable energy projects that rely on feedstock from ‘protected areas’. Descriptive Question - After CBDC, Sovereign Green Bond is Second hot Topic for RBI Grade B Finance Section. Prepare Notes https://www.business-standard.com/article/news-cm/finance-minister-approves-india-s-first-sovereign-green-bonds-framework-122111000622_1.html https://pib.gov.in/PressReleasePage.aspx?PRID=1874788 #answerwriting

Waste to Energy Plants Circular Economy - Reduce, Recycle and Reuse (3R). Same 3R used in LiFE movement launched by PM recently apart from 3P - Pro Planet People. Legacy Dumpsite - Years old big waste Dumping yards made in different cities. In some places it is spread in 1000s of acre. Just understand by utilizing it for energy it will not only reduce emissions but also clear space for other activities, provide Employment to 100s people in newly created energy plants and also health of people living in nearby areas of these Dumpsite will improve. This is the example of Circular Economy.

In order to keep global warming within 2°C, ideally no more than 1.5°C, global greenhouse gas (GHG) emissions need to be reduced by 25 to 50% over this decade. Nearly 170 countries have submitted their nationally determined contributions (NDCs) so far as part of the 2015 Paris Agreement, which they have agreed to update every five years. NDCs are climate commitments by countries setting targets to achieve net-zero emissions. India, for instance, is working on a long-term roadmap to achieve its target of net zero emissions by 2070. Carbon credits, also known as carbon offsets, are permits that allow the owner to emit a certain amount of carbon dioxide or other greenhouse gases. One credit permits the emission of one ton of carbon dioxide or the equivalent in other greenhouse gases. The carbon credit is half of a so-called cap-and-trade program. Companies that pollute are awarded credits that allow them to continue to pollute up to a certain limit, which is reduced periodically. Meanwhile, the company may sell any unneeded credits to another company that needs them. Private companies are thus doubly incentivized to reduce greenhouse emissions. First, they must spend money on extra credits if their emissions exceed the cap. Second, they can make money by reducing their emissions and selling their excess allowances. Proponents of the carbon credit system say that it leads to measurable, verifiable emission reductions from certified climate action projects, and that these projects reduce, remove, or avoid greenhouse gas (GHG) emissions. What are carbon markets? There are broadly two types of carbon markets that exist today— compliance markets and voluntary markets. Voluntary markets are those in which emitters— corporations, private individuals, and others— buy carbon credits to offset the emission of one tonne of CO 2 or equivalent greenhouse gases. Such carbon credits are created by activities which reduce CO 2 from the air, such as afforestation. In a voluntary market, a corporation looking to compensate for its unavoidable GHG emissions purchases carbon credits from an entity engaged in projects that reduce, remove, capture, or avoid emissions. For Instance, in the aviation sector, airlines may purchase carbon credits to offset the carbon footprints of the flights they operate. Compliance markets— set up by policies at the national, regional, and/or international level— are officially regulated. Today, compliance markets mostly operate under a principle called ‘cap-and-trade”, most popular in the European Union (EU). Under the EU’s emissions trading system (ETS) launched in 2005, member countries set a cap or limit for emissions in different sectors, such as power, oil, manufacturing, agriculture, and waste management. This cap is determined as per the climate targets of countries and is lowered successively to reduce emissions. #newsexplained

What are carbon markets and how do they operate? The World Bank estimates that carbon trading can reduce the global cost of implementing nationally determined climate goals by more than half

✅ What are the types of online gaming? e-sports (well-organized electronic sports which include professional players), Fantasy sports (Dream11, MPL Apps etc) Casual games: these can be either skill-based (mental skill) or chance based (based on a random activity like a roll of a dice) online games. ✅ How big is the online gaming market in India? Revenue generated: The revenue is estimated to reach $5 billion in 2025. Growth: CAGR of 38% between 2017-2020, as opposed to 8% in China and 10% in the US. ✅ Law on online gaming in India State subject: Online gaming so far has been a state subject, but state governments are finding it extremely difficult to enforce certain rules like geo-blocking certain apps or websites within the territory of their state. Applicability issue: there is a concern that rules passed in one state are not applicable in another, which has caused inconsistency in regulation. Lack enough power: State governments also do not have enough blocking powers like the Centre to issue blocking orders for offshore betting sites. ✅ Societal concerns that can emerge with the proliferation of online gaming— Increased suicidal incidents: people are losing large sums of money on online games, leading to suicides in various parts of the country. Uncertainty: For online gaming businesses, inconsistency has led to uncertainty. Other concerns: there is currently no regulatory framework to govern various aspects of online gaming companies such as having a grievance redressal mechanism, implementing player protection measures, protecting data and intellectual property rights, and prohibiting misleading advertisements. Just make notes out of above and beyond that you don't need much. Whenever you come across such news or events try to make short notes for it then and there, later you may miss important details, this is the trick i follow, or if I'm not free at that time then I copy the URL to my notepad. #explained

Online gaming in India  The country is the biggest market for fantasy sports globally, with over 13 crore users playing across over 200 platforms. The government noted that number of people involved in playing online rummy are on rise. India mainly puts the games into two broad categories to differentiate them.  The two categories are that the game is either a Game of Chance or a Game of Skill. Game of chance (Gambling): Games of chance are all those games that are played randomly. These games are based on luck. A person can play these games without prior knowledge or understanding. For instance, dice games, picking a number, etc. Such games are considered illegal in India. Game of skill (Gaming): Games of skill are all those games that are played based on a person’s prior knowledge or experience of the game. A person will require skills such as analytical decision-making, logical thinking, capability, etc. Some games might also require some initial training to win. Such games are considered legal by most of the Indian states. ✅ Essay - Online Gaming In India : Pros and Cons In October, the Tamil Nadu government promulgated an ordinance to prohibit online gambling and regulate online games in the state and said an online gaming authority will be established to exercise powers conferred by this ordinance. ✅ Essay - With rising risks from online gaming, should government ban online games? #explained

Explainer by The Hindu on Regulating Online Gaming.

Lets get started From Tomorrow, we follow this schedule for Phase II Revision. Daily 1 Questions each subject.

गुरुर्ब्रह्मा ग्रुरुर्विष्णुः गुरुर्देवो महेश्वरः । गुरुः साक्षात् परं ब्रह्म तस्मै श्री गुरवे नमः ॥ HAPPY GURU PURNIMA

I will share a 30 Days schedule for NABARD GRADE Grade A 2023 in 1-2 days and similarly we will start the way did for RBI Grade B 2023. Questions would cover all the chapters ESI and ARD along with current Affairs and Programs Too. There will be 2 Questions daily from Monday to Friday. You can invite your friends to this group @descriptive_bankexam, so that we can have more engagement. English Descriptive: Around 10-12 Precis is already available in the channel and in future also I will share, I regularly share list of important Essay topics and if you are following these then the chances are topics in exam will be related to it. I will also share a list of Important Letter writing and tricks to score good marks in letter with minimum efforts.