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DAILY CURRENT AFFAIRS, 20 MAY 2024

NON BANKING FINANCIAL COMPANIES (NBFC)

 
 
 
1. Context
The Reserve Bank of India (RBI) earlier this month asked gold loan lenders to stick to regulatory norms while lending in a bid to tighten its grip over Non-Banking Financial Companies (NBFCs). The RBI has increased its scrutiny of NBFCs after it found certain NBFCs to be flouting regulatory norms. In March, the RBI banned IIFL Finance from issuing fresh gold loans after the firm was found violating lending norms
 
2. What are the non-banking financial companies (NBFCs)?
 
  • Non-Banking Financial Companies (NBFCs) are financial institutions that provide banking services but do not hold a banking license.
  • They are crucial to the financial system as they cater to the financial needs of sectors where traditional banks may not reach or provide services.
  • NBFCs offer various financial services such as loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority, leasing, hire-purchase, insurance business, chit business, etc.
  • They differ from traditional banks because they cannot accept demand deposits and do not form part of the payment and settlement system like banks do.
  • However, they play a significant role in providing credit to individuals, small businesses, and the unorganised sector, thereby contributing to financial inclusion and economic growth. Examples of NBFCs include companies engaged in equipment leasing, hire-purchase finance, vehicle finance, and microfinance

3. Classification of NBFCs

NBFCs can be classified into various categories based on their activities, ownership structure, and regulatory requirements.

Here are some common classifications:

  • Asset Financing NBFCs: These NBFCs primarily provide financing for the purchase of assets such as vehicles, machinery, equipment, etc.

  • Investment and Credit NBFCs: These NBFCs primarily make investments in securities or extend credit facilities.

  • Infrastructure Finance Companies (IFCs): These NBFCs focus on financing infrastructure projects such as roads, ports, power, telecommunications, etc.

  • Housing Finance Companies (HFCs): These NBFCs specialize in providing finance for housing and related activities.

  • Microfinance Institutions (MFIs): These NBFCs provide financial services, including small loans, savings, and insurance, to low-income individuals and microenterprises.

  • Non-Deposit Taking NBFCs: These NBFCs do not accept deposits from the public. They rely on other sources of funding such as borrowings from banks, financial institutions, and capital markets.

  • Deposit Taking NBFCs: These NBFCs accept deposits from the public and are regulated more closely, similar to banks, to ensure the safety of depositor funds.

  • Systemically Important NBFCs (SI-NBFCs): These are NBFCs whose failure could potentially disrupt the financial system. They are subject to additional regulatory requirements to mitigate systemic risks.

  • Core Investment Companies (CICs): These NBFCs are primarily engaged in the business of acquisition of shares and securities and hold not less than 90% of its Total Assets in the form of investment in equity shares, preference shares, bonds, debentures, debt, or loans in group companies.

  • Infrastructure Debt Funds (IDFs): These NBFCs are set up to facilitate the flow of long-term debt into infrastructure projects.

4. What is the 50-50 Criteria of Principal Business?
 
  • The 50-50 criteria of principal business refers to a regulatory guideline set by the Reserve Bank of India (RBI) for determining whether a company's principal business is that of a Non-Banking Financial Company (NBFC).
  • According to this criterion, if more than 50% of a company's total assets or gross income comes from financial assets or income derived from financial assets, it is considered to be primarily engaged in the business of an NBFC. In other words, if at least 50% of the company's assets or income is from financial activities, it falls under the purview of NBFC regulations.
  • This guideline helps to differentiate between companies engaged primarily in non-financial activities with some incidental financial activities and those whose main business revolves around financial services, thereby ensuring appropriate regulation and supervision of NBFCs by the RBI. It is an important criterion used by regulators to determine the regulatory classification of companies operating in the financial sector

5.RBI rules on Non Banking Financial Companies

The Reserve Bank of India (RBI) regulates Non-Banking Financial Companies (NBFCs) in India to ensure financial stability, consumer protection, and the smooth functioning of the financial system.
 
Some of the key rules and regulations imposed by the RBI on NBFCs include:
  • NBFCs need to obtain a Certificate of Registration (CoR) from the RBI to commence or carry on the business of non-banking financial institution.
  • RBI imposes prudential regulations on NBFCs to ensure the safety and soundness of their operations. These norms cover aspects such as capital adequacy, income recognition, asset classification, provisioning, liquidity management, and exposure limits.
  • NBFCs are required to adhere to a Fair Practices Code (FPC) prescribed by the RBI, which outlines the principles of transparency, fairness, and responsible lending practices.
  • NBFCs are mandated to follow KYC norms while onboarding customers, including verification of identity, address, and other relevant information, to prevent money laundering and terrorist financing activities
  • NBFCs are required to implement effective AML/CFT measures, including customer due diligence, transaction monitoring, and reporting of suspicious transactions, to mitigate the risks of money laundering and terrorist financing.
  • RBI mandates NBFCs to adhere to good corporate governance practices, including the composition of the board of directors, risk management framework, internal controls, and disclosure requirements
  •  NBFCs are required to have robust risk management systems in place to identify, assess, monitor, and mitigate various risks such as credit risk, market risk, liquidity risk, and operational risk.
  • NBFCs need to submit various regulatory returns and reports to the RBI periodically, providing details of their financial performance, capital adequacy, asset quality, and compliance with regulatory requirements.
  • RBI conducts regular inspections and supervisory reviews of NBFCs to assess their financial health, compliance with regulations, and adherence to best practices.
  • RBI has the authority to issue directions, impose restrictions, and take corrective actions against NBFCs that fail to comply with regulatory requirements or pose risks to the financial system.
 
6. Way Forward
Non-Banking Financial Companies (NBFCs) play a vital role in India's financial landscape, serving as critical intermediaries between traditional banking institutions and underserved segments of the economy. With their diverse range of financial services and flexible approach to lending, NBFCs contribute significantly to promoting financial inclusion, fostering entrepreneurship, and driving economic growth. However, the regulatory framework governing NBFCs remains paramount in ensuring the stability and integrity of the financial system. As the sector continues to evolve and face new challenges, effective regulation, prudent risk management, and adherence to best practices will be essential for NBFCs to sustain their growth trajectory and fulfill their socio-economic mandate in a responsible and sustainable manner
 
 
For Prelims: Economy
For Mains: GS-III: Indian Economy and issues relating to planning, mobilisation, of resources, growth, development, and employment.
 
 

Previous Year Questions

1.The RBI acts as a bankers’ bank. This would imply which of the following? (UPSC CSE 2012)

1. Other banks retain their deposits with the RBI.

2. The RBI lends funds to the commercial banks in times of need.

3. The RBI advises the commercial banks on monetary matters.

Select the correct answer using the codes given below :

(a) 2 and 3 only

(b) 1 and 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer (d)

The central bank, also known as the apex bank, has overarching control over a nation's banking system. It holds the exclusive authority for issuing currency and regulates the money supply within the economy. As outlined in the Reserve Bank of India Act, 1934, the central bank fulfills several key functions:

  • Banking functions: Acting as the banker, agent, and advisor to both the central and state governments, the Reserve Bank handles all banking operations for these entities. It extends advisory services to the government on economic and monetary policy matters and manages the public debt. Furthermore, it functions similarly to a commercial bank for other banks, including providing loans to all commercial banks nationwide.

  • Supervisory functions: The central bank supervises and monitors other banks and governmental entities, guiding them through various economic conditions, especially during periods of inflation or deflation.

  • Promotional functions: In addition to its regulatory role, the central bank undertakes promotional activities such as fostering connections with global economies and managing foreign reserves. These efforts contribute to representing the country's economy on the international stage.

  • Advisory functions: Offering guidance on monetary issues to commercial banks is another essential role of the central bank, ensuring effective monetary policy implementation.

2.With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements: (UPSC CSE 2010)
  1. They cannot engage in the acquisition of securities issued by the government.
  2. They cannot accept demand deposits like Savings Account.

Which of the statements given above is/are correct?

(a) 1 only
(b) 2 only 
(c) Both 1 and 2 
(d) Neither 1 nor 2

Answer: (b)

  • Statement 1: They cannot engage in the acquisition of securities issued by the government. This statement is False. NBFCs can invest in government securities like bonds.
  • Statement 2: They cannot accept demand deposits like Savings Account. This statement is True. NBFCs are unlike banks and cannot accept demand deposits that are withdrawable on demand. They can only accept fixed deposits with a predetermined maturity period
Source: Indianexpress
 

H5N1

1. Context 

Even while no case of H5N1 infection in humans has been reported after consuming raw milk, scientists believe that the virus can be transmitted via an infected cow’s milk that has not been pasteurised. The lone reported human case in the current outbreak of cattle spread across 49 herds in nine States in the U.S. has been a dairy farm workerwho had direct exposure to cows and developed conjunctivitis

2. Avian Influenza

  • Avian Influenza, also known as Avian or Bird Flu, is a form of influenza caused by a virus found in birds.
  • Avian Flu is similar to variants found in animals and humans – caused strains of influenza that have adapted to specific hosts.

3. Avian Influenza Type A viruses

  • Type A viruses are classified based on two proteins on their surfaces – Hemagglutinin (HA) and Neuraminidase (NA). There are about 18 HA subtypes and 11 NA subtypes.
  • Several combinations of these two proteins are possible e.g., H5N1, H7N2, H9N6, H17N10, H18N11, etc.
  • All known subtypes of influenza A viruses can infect birds, except subtypes H17N10 and H18N11, which have only been found in bats.
Image Source: The Hindu

4. Effect on Birds

  • Although avian influenza has different subtypes, H5N1 is a highly pathogenic subtype that causes mortality in birds.
  • Since 2022, the virus has infected over 100 million birds across the globe, resulting in the deaths of over 50 million and the culling of millions of poultry.
  • Unlike previous outbreaks of highly pathogenic subtypes of avian influenza, H5N1 is heavily impacting wild bird species, including many which were on the verge of extinction. 
  • While it is difficult to ascertain how many wild birds have been affected by the virus, a significant impact has been seen in eagles, pelicans, geese, waterfowl, gulls, falcons, and shorebirds, in addition to the highest possible impact on poultry seen till date, at least in the U.S.
  • The impact of H5N1 on wild bird populations has varied depending on several factors, such as the level of exposure, geographical locations, and migratory patterns of the affected species. 
  • High mortality in wild birds due to the virus could lead to significant ecological consequences, including the vulnerability of predators and alterations in species composition in affected ecosystems, and therefore a possible impact on biodiversity not just limited to avian species. 
  • It has raised concerns regarding the spread of the virus among critically endangered avian populations.  

5. Spreading to animals

  • The highly contagious H5N1 virus can also occasionally spill over from birds to animals through direct or indirect contact with infected birds or their droppings. 
  • Worryingly, there have been several reports on the spillover of H5N1 to mammals during the current outbreak from different countries, infecting species such as sea lions, minks, foxes, wild bears, and skunks, apart from domestic animals such as dogs and cats.
  • In 2023 alone, H5N1 caused the deaths of over 3,000 sea lions in Peru. In a recent yet ­to­ be peer ­reviewed study, scientists found that the virus could efficiently spread between ferrets in the laboratory.
  • The only known cases of the virus spreading between mammals were reported in minks that were raised in close confinement on a farm in Spain.
  • The transmission of H5N1 from birds to mammals is rare, but when it does occur, it can be a cause for concern, as the virus could accumulate mutations and acquire the ability to potentially initiate human outbreaks.
  • H5N1 has a high mortality rate of over 60% in humans and is primarily transmitted to humans through close contact with infected birds or animals, either through handling infected poultry or exposure to contaminated environments.

6. Enhanced Measures

  • As the current H5N1 outbreak continues unabated with devastating impact on the avian population globally, and with significant ecological and economic consequences, the time has never been better to initiate efforts for preparedness towards building better, more efficient vaccines for avians and humans.
  • Genomic surveillance should be done to map the continued evolution of the virus.
  • Moreover, enhanced biosecurity measures are required to protect both animal and public health.
For Prelims: Avian influenza H5N1, Bird Flu, Hemagglutinin (HA) and Neuraminidase (NA), influenza A viruses, Genomic surveillance, Pathogens, and Viruses.
 

Previous year Questions

1. H1N1 virus is sometimes mentioned in the news with reference to which one of the following diseases? (UPSC 2015)

A. AIDS
B.  Bird flu
C.  Dengue
D.  Swine flu

Answer: D

2. Consider the following statements : (UPSC 2010)

1. Every individual in the population is an equally susceptible host for Swine Flu.

2. Antibiotics have no role in the primary treatment of Swine Flu.

3. To prevent the future spread of Swine Flu in the epidemic area, the swine (pigs) must all be culled.

Which of the statements given above is/are correct?

A. 1 and 2 only

B. 2 only

C. 2 and 3 only

D. 1, 2 and 3

Answer: A

3. Which of the following statements is/are correct? (UPSC 2013)

1. Viruses lack enzymes necessary for the generation of energy.

2. Viruses can be cultured in any synthetic medium.

3. Viruses are transmitted from one organism to another by biological vectors only.

Select the correct answer using the codes given below.

A. 1 only

B. 2 and 3 only

C. 1 and 3 only

D. 1, 2 and 3

Answer: A

Source: The Hindu
 

EUROPEAN FREE TRADE ASSOCIATION (EFTA)

 
 
1. Context
 
 
India signed a trade agreement with the four-nation European Free Trade Association (EFTA) on March 10, 2024, an intergovernmental grouping of Iceland, Liechtenstein, Norway and Switzerland. The deal brings in $100 billion in investment over 15 years, with the EFTA looking at joint ventures that will help India diversify imports away from China
 
 
 2. About European Free Trade Association
 

The European Free Trade Association (EFTA) is an intergovernmental organization that aims to facilitate free trade and economic cooperation among its member states. EFTA was established on May 3, 1960, as an alternative trade bloc to the European Economic Community (EEC), which later evolved into the European Union (EU). The founding members of EFTA were Austria, Denmark, Norway, Portugal, Sweden, Switzerland, and the United Kingdom.

The key aspects of EFTA

EFTA comprises four member countries: Iceland, Liechtenstein, Norway, and Switzerland. The organization has experienced changes in membership over the years, with some countries joining or leaving.

  • EFTA's primary objectives include promoting free trade and economic cooperation among its member states. It aims to facilitate the reduction or elimination of barriers to trade in goods and services, enhance economic relations, and foster mutual understanding and collaboration in various economic sectors.
  • While EFTA is a distinct organization, its member states often have close economic ties with the European Union. EFTA countries have developed various agreements and arrangements with the EU to facilitate trade and economic cooperation. However, EFTA member states are not part of the EU Customs Union or the EU Single Market.
  • EFTA has engaged in numerous free trade agreements (FTAs) with countries and regions around the world. These agreements aim to reduce or eliminate tariffs and other trade barriers, promoting the flow of goods and services. EFTA countries have FTAs with countries in Europe, Asia, Africa, and South America.
  • The EFTA Surveillance Authority oversees the application of EFTA's rules in its member states. It monitors compliance with agreements, including ensuring that competition rules and other regulations are adhered to by member countries.
  • The EFTA Court serves as the judicial body for the EFTA states. It handles disputes related to the interpretation and application of EFTA law. The court's decisions contribute to the legal framework of EFTA's trade and economic agreements.
  • Over the years, EFTA has seen changes in its membership. Some countries have joined, while others have left. Accession to EFTA involves negotiations and the fulfillment of certain criteria, reflecting the organization's commitment to free trade and economic cooperation.
  • EFTA member countries have diverse and developed economies. They are known for their high living standards, economic stability, and competitiveness. The organization provides a platform for these countries to collaborate and engage in trade with partners around the world.
  • While trade is a central focus, EFTA member states also collaborate in other areas, including research and development, innovation, and cultural exchanges. The organization serves as a forum for discussing and addressing various economic and policy issues.

Main Goals of EFTA

  • To promote free trade and economic integration among its member states.
  • To strengthen member states' economies and improve their competitiveness on the global market.
  • To cooperate with other countries and international organizations to further liberalize trade and promote economic development.

Institutional Structure

  • The EFTA Council is the organization's highest governing body, consisting of representatives from each member state. It meets regularly to discuss and decide on important matters related to EFTA's objectives and activities.
  • The EFTA Secretariat, based in Geneva, Switzerland, provides administrative support and facilitates communication among member states.
  • EFTA actively engages in negotiations and establishes free trade agreements (FTAs) with various countries and regions outside the organization, contributing to the expansion of economic cooperation.

Current Status of EFTA

  • Despite not being part of the EU, EFTA members maintain close economic ties with the EU through a series of bilateral agreements.
  • They participate in the European Single Market and are part of the Schengen Area, allowing for the free movement of goods, services, capital, and people.
  • EFTA remains an important economic player in Europe, with a combined GDP of over €1 trillion and a population of over 13 million.
 

Benefits of EFTA Membership

  • EFTA's free trade agreements and common market have led to a significant increase in trade and investment between member states and their trading partners.
  • EFTA's focus on free trade and economic cooperation has helped to stimulate economic growth in member states.
  • By cooperating on research and development, innovation, and education, EFTA member states have become more competitive in the global market.
  • EFTA membership has contributed to a higher standard of living and greater prosperity for the citizens of member states.

 

Challenges for EFTA

  • The EU remains EFTA's largest trading partner, but it also poses a significant challenge. The EU's larger size and economic power give it an advantage in negotiations, and some EFTA businesses have expressed concerns about being at a disadvantage compared to their EU counterparts.
  • With the ongoing integration of the EU, EFTA needs to ensure that it remains relevant and attractive to potential members and trading partners. The association needs to continue to find ways to differentiate itself from the EU and to offer unique benefits to its members.
  • The global economy is constantly evolving, and EFTA needs to be able to adapt to these changes. The association needs to focus on emerging markets and new technologies to ensure that its members remain competitive in the long term.
 
3. The Way Forward
 
EFTA remains a vital economic force in Europe. The association is well-positioned to continue to prosper in the coming years, thanks to its strong member states, its focus on free trade and economic cooperation, and its adaptability. By continuing to adapt to the changing global economy and by finding ways to differentiate itself from the EU, EFTA can ensure that it remains a relevant and successful organization for its members in the years to come.
 
 

For Prelims: European Union, free trade, European Free Trade Association, European Economic Community
 
For Mains: 
1. Examine the impact of Switzerland's policy on tariff-free entry for all industrial goods on India's potential gains from the ongoing India-EFTA Free Trade Agreement negotiations. (250 Words)
2. Discuss the strategies and opportunities for EFTA to remain relevant, differentiate itself, and adapt to the evolving global economy. (250 Words)
Source: The Indian Express
 

BAOBAB TREES

 
 
1. Context
 

A recent study has unveiled the origins of baobabs, the tall and uniquely shaped deciduous trees prominently found on the island of Madagascar. Often referred to as the “mother of the forest,” various species of baobabs are also native to Africa and Australia.

The study, titled ‘The rise of baobab trees in Madagascar,’ was conducted by UK, China, and Africa researchers. Published in Nature, it delves into the evolution and spread of these iconic trees and the current threats they face.

 

2. About Baobab Trees

 

Baobabs are renowned for their impressive heights, with some reaching up to 50 meters, and their exceptionally long lifespans, which can extend up to 2,000 years. A few baobab trees can be found in India, including a notable one near the Golconda Fort in Telangana that is believed to be over 400 years old.

  • Baobabs have trunks with large circumferences and thin, spindly branches. They are often called “upside-down” trees because their tops resemble an uprooted plant turned upside down. According to one Arab legend, "The devil plucked up the tree and thrust the branches into the soil, leaving the roots in the air." This nickname and legend are discussed in the book ‘The Baobabs: Pachycauls of Africa, Madagascar and Australia’ by Gerald E. Wickens and Pat Lowe.
  • In local cultures, baobab trees are revered for their multiple uses. The fruits and seeds are edible, the seed oil is used for cooking, and the bark fibre is used for clothing.
  • Baobabs are keystone species in their ecosystems. Keystone species provide essential resources, such as food or shelter, to a guild of animals that, in return, provide crucial services like pollination or seed dispersal. The absence of keystone species can destabilize entire ecosystems. For example, baobabs play a crucial biological role in conserving ecosystems that include important constituents such as lemurs, sunbirds, and hawk moths.
  • Baobabs belong to the genus Adansonia, which comprises eight distinct species: Adansonia digitata found in continental Africa, Adansonia gregorii in Northwestern Australia, and six other species endemic to Madagascar.

3. Key Findings of the Study

 

The recent study highlighted both the threats faced by baobab trees and their genetic makeup. It was noted that three species of baobab trees in Madagascar are threatened with extinction, as per the IUCN Red List of Threatened Species. The remaining three species are classified under the Least Concern category, indicating they do not currently face significant threats.

Threats to Baobab Trees

The IUCN identifies several threats to baobabs, including residential and commercial development, livestock farming, and ranching, which require clearing land. However, the study emphasized that even species not directly threatened show declining populations, necessitating more rigorous conservation strategies to ensure their long-term survival. A detailed understanding of the genetics of baobabs is crucial for effective conservation efforts.

Genetic Insights and Evolution

Genomic sequencing of baobabs revealed a consensus on the monophyly of the Malagasy lineage from Madagascar. According to the study, DNA evidence suggests that these iconic trees first arose in Madagascar around 21 million years ago. Their seeds were later dispersed by ocean currents to Australia and mainland Africa, where they evolved into distinct species.

Impact of Climate Change and Inbreeding

The study also warned that climate change poses severe threats to species like Adansonia suarezensis from Madagascar, predicting its potential extinction before 2080. Further assessments of Adansonia suarezensis and Adansonia grandidieri indicated high levels of recent inbreeding. Due to their unique ecological roles and low genetic diversity, these species likely have reduced resilience to ecological disturbances and habitat fragmentation

 

4. Way Forward

 

By implementing the strategies, we can ensure the continued survival of these magnificent trees, preserving their ecological and cultural value for future generations. The baobab's story is a reminder of the interconnectedness of our planet and the importance of proactive conservation efforts in safeguarding biodiversity.

 

For Prelims: Baobab trees, Madagascar

 

Previous Year Questions
1. Match List-I with List-II and select the correct answer using the codes given below the lists: (UPPSC 2019)

List – I (Natural Vegetation)     List – II (Region)

(A) Ephiphytes                          1. Mediterranean

(B) Acacia                                 2. Equatorial

(C) Baobab                               3. Sahara

(D) Cedars                                4. Savanna

1. A - 2, B - 3, C - 4, D - 1
2. A - 2, B - 3, C - 1, D - 4
3. A - 2, B - 4, C - 3, D - 1
4. A - 2, B - 4, C - 1, D - 3

Answer: 3

Source: The Indian Express

STONE AGE

 
 
 
1. Context
 

Recent research suggests that the Stone Age, traditionally known for the use of stone tools by humans and their ancestors, could also be accurately described as the ‘Wood Age’. This insight comes from the study of ancient wooden artefacts, revealing advanced woodworking skills long before previously acknowledged.

 

2. The Stone Age as the ‘Wood Age’

 

  • A study of wooden artefacts dated between 300,000 and 400,000 years old was conducted on items excavated from a coal mine in Schoningen, Germany, between 1994 and 2008.
  • These artefacts were found to be more than simple "sharpened sticks." Instead, they were identified as "technologically advanced tools" requiring considerable skill, precision, and time to construct.
  • The study, published in the journal Proceedings of the National Academy of Sciences in April, identified a total of 187 wooden artefacts.
  • These items demonstrated a broad spectrum of woodworking techniques, including splitting, scraping, and abrasion.
  • The findings underscore the technological sophistication of early humans in using wood to create tools.

 

3. Periodising Human Prehistory

 

  • In technical terms, human 'history' began with the advent of writing, while everything before that is classified as 'prehistory'.
  • Prehistory is primarily studied using archaeological evidence, such as physical remains from the past.
  • Ethnographic research, which studies human cultures and communities, also provides valuable insights.
  • In the 19th century, Danish archaeologist Christian Jurgensen Thomsen introduced the first scientifically rigorous periodisation of human prehistory.
  • He divided it into three main ages based on technological advancements: the Stone Age, the Bronze Age, and the Iron Age.
  • Thomsen's chronology, although refined over time to reflect diverse cultural experiences, has become a foundational framework in archaeological studies.

The Stone Age

The Stone Age began approximately 3.4 million years ago (mya) when hominids first started using stone tools in modern-day Ethiopia. This era, which constitutes 99% of human history, lasted until about 6,000-4,000 BP (Before Present). It is divided into three periods: the Palaeolithic, Mesolithic, and Neolithic.

  1. The Palaeolithic, or 'Old Stone Age', extended until about 11,650 BP in some regions. This period is marked by the use of rudimentary stone tools and a hunter-gatherer lifestyle.
  2. The Mesolithic, or 'Middle Stone Age', is a transitional phase between the Palaeolithic and Neolithic periods. It featured advancements in tool-making and changes in human lifestyle as communities began to settle more permanently.
  3. The Neolithic, or 'New Stone Age', saw the advent of agriculture and the domestication of animals. This period marked significant technological and social advancements, leading to the development of early human settlements and more complex societies.

 

4. Preservation Bias in Archaeology

 

Archaeological evidence forms the basis of the Stone Age classification, primarily through the discovery of stone tools, which offer insights into the lives and capabilities of early humans and their ancestors.

As Charles Darwin wrote in "The Descent of Man, and Selection in Relation to Sex" (1871): “To chip a flint into the rudest tool…demands the use of a perfect hand”. Even the most rudimentary stone tools required a level of mental sophistication and physical dexterity that is rarely if ever, seen in other creatures.

Evidence of Diverse Material Use

The capabilities of early humans were not limited to working with stone. Stone Age sites worldwide also show evidence of using other materials, such as bones, antlers, clay, and limited metalworking. However, evidence of woodworking has been scarce, despite wood being an abundant resource.

The Scarcity of Wooden Artifacts

Out of thousands of archaeological sites from the Lower Palaeolithic (up to around 200,000 BP), wood has been recovered from fewer than 10 sites. The earliest evidence of wooden use, such as wooden dwellings, dates back to only 700,000 BP, which is over two and a half million years after the earliest evidence of stone tools.

Reassessing the Importance of Wood

"The Neolithic or Wood Age" (1985), argued that "The absence of wooden remains from the Palaeolithic period… is certainly no indication that wood was not used." “We can probably assume that wooden tools have been around just as long as stone ones… But since wood deteriorates and rarely survives, preservation bias distorts our view of antiquity,”. 

 
 
5. Significance of Schöningen Discoveries
 

The discoveries in Schoningen are pivotal due to the exceptional preservation of wooden artefacts. The site's damp and oxygen-deprived conditions prevented the decomposition of wood and other organic matter, resulting in the most well-preserved assemblage of prehistoric wooden artefacts globally.

Variety and Importance of Wooden Tools

“Schoningen stands out due to its number and variety of wooden tools,” states the recently published study identifies a minimum of 20 hunting weapons and 35 tools made from split wood, likely used in domestic activities.

Groundbreaking Discoveries

In the mid-1990s, archaeologist Hartmut Thieme uncovered three wooden spears alongside stone tools and butchered remains of over ten wild horses, dating back around 400,000 years. These discoveries of the world’s oldest preserved hunting weapons brought global fame to Schoningen and Thieme. The spears suggest that systematic hunting, involving foresight, planning, and appropriate technology, was part of the behavioural repertoire of pre-modern hominids. Thieme’s paper, ‘Lower Palaeolithic Hunting Spears from Germany’ (1997), highlights that pre-Homo sapiens communicated, organized butchering, and roasted their prey.

Technological Complexity Revealed

The new study further illuminates the technological sophistication of Schoningen’s wooden artefacts. Using 3-D microscopy and micro-CT scanners, researchers studied signs of wear or cut marks. Until now, splitting wood was thought to have been only practised by modern humans. Some spear points showed indications of being resharpened after breakage. The study noted that wood identified as working debris suggested tools were repaired and recycled for new tasks.

A More Comprehensive View of Prehistory

Despite the scarcity of evidence for prehistoric woodworking, findings from Schoningen provide a more comprehensive glimpse into our past. They highlight the significance of wood as a raw material and showcase pre-modern humans’ sophisticated woodworking capabilities.

 
6. Way Forward
 
 
By embracing a broader narrative that acknowledges the significance of wood and other materials, we gain a deeper appreciation of the ingenuity and resourcefulness of our ancestors. The Stone Age, or perhaps the "Stone and Wood Age," emerges as a period of remarkable human innovation and adaptation.
 
 
For Prelims: Stone Age, Wood Age, Schoningen site
For Mains: 
1. Discuss the recent research suggesting that the Stone Age could also be described as the 'Wood Age'. How do ancient wooden artefacts challenge traditional perceptions of early human technological capabilities? (250 Words)

 

Previous Year Questions

1. Consider the following statements about the Stone Age in India: (CDS GK 2020) 

1. Different periods are identified based on the type and technology of stone tools.
2. There are no regional variations in the type and technology of tools in different periods.
3. Stone Age cultures of different periods evolved uniformly in a near unilinear fashion all over the subcontinent.

Which of the statements given above is/are correct?

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

Answer: A

Source: The Indian Express

KATHAKALI

 
 
 
1. Context
While the creative prowess of artificial intelligence (AI) is not received so ecstatically by some artists, a collaboration of artists and programmers in Kerala is now crafting a machine language to foster a deeper appreciation for Kerala’s classical art Kathakali.
 
2. Kathakali Dance
 
Kathakali is a classical Indian dance-drama that originates from the southwestern state of Kerala. Known for its vivid and elaborate costumes, expressive gestures, and intricate makeup, Kathakali is a highly stylized form of performance that combines aspects of dance, drama, and music
Kathakali developed in the 17th century and has its roots in temple and folk arts, as well as the earlier dance forms of Kerala, such as Krishnanattam. It was significantly influenced by the narratives from Hindu epics like the Mahabharata and the Ramayana, and Puranic stories
 
3. Features of Kathakali
 
  • Costumes and Makeup: The costumes are one of the most distinctive features of Kathakali. Performers wear large, colorful, and elaborate costumes, with intricate face makeup that helps depict the nature of the characters:
    • Pacha (Green): Represents noble and divine characters.
    • Kathi (Knife): Represents villainous characters.
    • Minukku (Shining): Represents virtuous women and Brahmins.
    • Thadi (Beard): Varies to represent different types of characters, like red for aggressive and black for hunters and forest dwellers
  • Facial Expressions (Navarasas): Kathakali heavily emphasizes facial expressions to convey emotions. The nine emotions, or Navarasas, are central to the portrayal of the character's inner state.
  • Mudras: Hand gestures, or mudras, play a critical role in conveying the story and the dialogues between characters. There are over 24 basic mudras, and each can combine to create more complex meanings.
  • Music and Instruments: The music in Kathakali is another crucial component, usually performed by a group of musicians. Traditional instruments include:
    • Chenda: A cylindrical drum played with sticks.
    • Maddalam: A drum played with hands.
    • Elathalam: Cymbals.
    • Shankh: Conch.
 
Themes and Stories
 
Kathakali performances are predominantly based on stories from Hindu mythology, epics, and Puranas. They depict tales of valor, virtue, and the triumph of good over evil, often revolving around gods, demons, and heroes
Kathakali dancers undergo rigorous training, often starting from a young age. Training includes physical exercises to build stamina, flexibility, and strength, alongside detailed instruction in facial expressions and hand gestures.A typical Kathakali performance is a grand spectacle that can last for several hours, sometimes overnight. The performances take place in temples and cultural festivals, especially in Kerala.
 
 
4. Way Forward
 
While traditional Kathakali sticks closely to its classical roots, modern interpretations and adaptations have emerged. Contemporary Kathakali performances sometimes incorporate stories from other cultures and even modern themes, expanding its appeal and relevance
Kathakali is a profound and visually striking art form that encapsulates the rich cultural heritage of Kerala. Its unique blend of dance, drama, music, and ritual continues to captivate audiences both in India and worldwide, preserving and promoting the traditional art form for future generations
 
 
Previous Year Questions
 
1.With reference to the famous Sattriya dance, consider the following statements: (2014)
  1. Sattriya is a combination of music, dance and drama.
  2. It is a centuries-old living tradition of Vaishnavites of Assam.
  3. It is based on classical Ragas and Talas of devotional songs composed by Tulsidas, Kabir and Mirabai.

Which of the statements given above is/are correct?

(a) 1 only
(b) 1 and 2 only 
(c) 2 and 3 only
(d) 1, 2 and 3

Answer: (b)

  1. Sattriya is a combination of music, dance and drama.

    • True. Sattriya dance, one of the eight classical dance forms of India, integrates elements of music, dance, and drama. It was created by the Vaishnavite saint Srimanta Sankardev in Assam as a means of spreading his religious teachings.
  2. It is a centuries-old living tradition of Vaishnavites of Assam.

    • True. Sattriya has been a part of Assam's cultural and religious life for centuries, specifically among the Vaishnavite communities. It originated in the 15th century and is performed in Sattras (monasteries) which were established by Sankardev and his disciples.
  3. It is based on classical Ragas and Talas of devotional songs composed by Tulsidas, Kabir and Mirabai.

    • False. While Sattriya dance does employ classical Ragas and Talas, the devotional songs it uses are primarily those composed by Srimanta Sankardev and his disciple Madhavdev, rather than Tulsidas, Kabir, and Mirabai, who are associated with different regions and traditions.

Given the evaluation of each statement:

  • Statement 1 is correct.
  • Statement 2 is correct.
  • Statement 3 is incorrect.
Source: The Hindu

LION-TAILED MACAQUE

 
 
 
1. Context
Valparai town in Coimbatore district of Tamil Nadu is a typical hill station with roads largely free of vehicles and people. But there is a bustle of activity near the Sree Muruga temple in the heart of the town. Monkeys with silver-white manes contrasting with shiny coats of black fur and tufted tails have parked themselves on the roofs of buildings, railings and platforms of shops. They are busy looking for something to eat, even food waste or rotten fruits and vegetables. Some look for bits and pieces of biscuits and chips in discarded packets
 
2. About Lion Tailed Macaque
 
  • The Lion-tailed Macaque, also known as the Wanderoo, is an Old World monkey found in the Western Ghats of South India
  • Lion-tailed macaques are covered in black fur with a striking grey or silver mane that surrounds their face, present in both sexes. Their tail, which is how they got their name, is long, thin, and hairless with a black, tufted tip resembling a lion's tail
  • They are social animals that live in groups of 4 to 30 individuals. These groups typically consist of a few adult males and roughly twice as many females and offspring.
  • One of the males will be the alpha male, or leader, of the group. Interestingly, unlike females who tend to stay within the same troop throughout their lives, males will often change groups by joining another and taking over through dominance
  • Lion-tailed macaques are rain forest dwellers, favouring the upper canopy of tropical moist evergreen forests and monsoon forests.
  • They are diurnal creatures, meaning they are active during the day. They spend roughly half of their day foraging for food and the other half resting or searching for new foraging areas
3. Overview of Lion Tailed Macaque
 
Category Details
Physical Characteristics Appearance: Lion-like tail with a tuft of fur, silver-grey mane, black body fur.
  Size: Males (5-10 kg), Females (3-6 kg).
  Lifespan: About 20 years in the wild, up to 30 years in captivity.
Habitat and Distribution Habitat: Tropical rainforests at elevations between 600 and 1500 meters.
  Geographical Range: Endemic to the Western Ghats of India.
Behavior and Diet Social Structure: Troops of 10 to 20 individuals, with a dominant male.
  Diet: Omnivorous, prefers fruits, seeds, leaves, flowers, and insects.
  Activity: Diurnal and arboreal, excellent climbers, rarely come to the ground.
Reproduction Breeding: Peaks during the monsoon season.
  Gestation: About 6 months, typically resulting in a single infant.
Conservation Status IUCN Red List: Endangered.
  Threats: Habitat loss due to deforestation, agriculture, logging, and human settlement expansion.
  Conservation Efforts: Habitat protection, wildlife sanctuaries, national parks, reducing human-wildlife conflict.
Importance in Ecosystem Ecological Role: Seed dispersal, indicating a healthy, biodiverse forest.
 
 
4. Habitat of Lion-Tailed Macaque
 
The Lion-tailed Macaque inhabits tropical rainforests, primarily at elevations between 600 and 1500 meters. They are endemic to the Western Ghats of India, a biodiversity hotspot known for its dense, evergreen forests with a complex canopy structure. These macaques prefer undisturbed primary forests but can occasionally be found in secondary forests. They are predominantly arboreal, spending most of their time in the upper canopy. The primary threats to their habitat include destruction due to deforestation, agriculture, logging, and human settlement expansion. This habitat loss and fragmentation significantly impact their population and survival
 
5. Characteristics of Lion Tailed Macaque
 
  • The Lion-tailed Macaque (Macaca silenus) possesses several distinct characteristics:
  • They have a striking appearance with a mane of silver-grey hair surrounding their face, which contrasts with their black body fur. Their tail, resembling a lion's with a tuft of fur at the end, is a notable feature
  • Males are larger than females. Males typically weigh between 5 to 10 kg, while females weigh between 3 to 6 kg
  • In the wild, Lion-tailed Macaques live for about 20 years, but they can live up to 30 years in captivity
  • These primates are endemic to the Western Ghats of India, inhabiting tropical rainforests at elevations of 600 to 1500 meters
  • They live in small troops of about 10 to 20 individuals, usually with a single dominant male, several females, and their offspring. The troops are territorial and maintain a defined home range.
  • Omnivorous, their diet primarily consists of fruits, seeds, leaves, flowers, and insects. They have a preference for ripe fruits and are known for their foraging habits.They are diurnal and arboreal, spending most of their time in the trees. They are excellent climbers and rarely come to the ground
  • The breeding season varies, peaking during the monsoon season. The gestation period is about six months, resulting in the birth of a single infant. The young are primarily cared for by the mother but receive attention from other group members as well
  • The Lion-tailed Macaque is listed as Endangered on the IUCN Red List. They face significant threats from habitat destruction due to deforestation, agricultural expansion, logging, and human settlement
6. Behaviour of the Lion-Tailed Macaque
 
The behaviour of the Lion-tailed Macaque (Macaca silenus) is quite distinctive and reflects their adaptation to the dense, tropical rainforests of the Western Ghats in India.
 
Here are the key aspects of their behaviour:
  •  Lion-tailed Macaques are active during the day (diurnal). They spend the daylight hours foraging, socializing, and traveling within their territory
  • These macaques are highly arboreal, meaning they spend most of their time in the trees. They are adept climbers and rarely descend to the ground, preferring the safety and resources of the upper canopy
  • They live in small social groups, or troops, typically consisting of 10 to 20 individuals. Each troop usually has a single dominant male, multiple females, and their offspring. The social hierarchy within the group is well-defined, with the dominant male often playing a key role in group dynamics and defense
  • Lion-tailed Macaques are territorial animals. They maintain and defend a specific home range against other groups. Territorial disputes can involve vocalizations and displays of aggression to ward off intruders
  • These macaques use a variety of vocalizations, facial expressions, and body postures to communicate with each other. Vocalizations include calls to alert the group to potential dangers, coordinate movements, and express social bonds
  • Their diet is omnivorous, with a preference for fruits, seeds, leaves, flowers, and insects. They spend a significant portion of their day foraging for food, which they often find in the upper canopy. Their foraging behavior is crucial for seed dispersal, contributing to forest regeneration
  • The breeding season peaks during the monsoon, although it can vary. After a gestation period of about six months, females give birth to a single infant. The mother is primarily responsible for the infant's care, but other group members also engage in alloparenting, providing additional support and protection
  • Grooming is an essential social activity among Lion-tailed Macaques. It helps to strengthen social bonds, reduce tension, and maintain hygiene by removing parasites and dirt from their fur
  • Their arboreal nature helps them avoid many ground-based predators. However, they remain vigilant against aerial predators and potential threats from the ground. Alarm calls are used to warn group members of danger
  •  In the wild, they live around 20 years, and up to 30 years in captivity. Younger macaques learn crucial survival skills through observation and interaction with older, more experienced group members
 
Conservation of Lion-Tailed Macaque
 
The Lion-tailed Macaque, with its dwindling population, is classified as "Endangered" by the IUCN. Thankfully, there are conservation efforts underway to protect these primates and their habitat.
The biggest threat to lion-tailed macaques is habitat loss. Deforestation for agriculture, timber, and human settlements is shrinking the rainforests they call home.  This habitat fragmentation also disrupts their ability to move freely between forest patches

Key Organizations Involved

  • Wildlife Conservation Society (WCS)
  • World Wide Fund for Nature (WWF)
  • Indian government agencies such as the Ministry of Environment, Forest and Climate Change (MoEFCC)
  • Local NGOs and community groups
 
 
7. Way Forward
Conserving the Lion-tailed Macaque requires a multi-faceted approach involving habitat protection, community involvement, legal enforcement, and continuous research. Collaborative efforts between government agencies, NGOs, local communities, and international organizations are essential to ensure the survival of this unique and endangered primate
 
 
Previous Year Questions
1.In which of the following States is lion-tailed macaque found in its natural habitat? (UPSC CSE 2013)
1. Tamil Nadu
2. Kerala
3. Karnataka
4. Andhra Pradesh
Select the correct answer using the codes given below.
A.1, 2 and 3 only
B.2 only
C.1, 3 and 4 only
D.1, 2, 3 and 4
Answer (A)
The Lion-tailed Macaque (Macaca silenus) is found in its natural habitat in the Western Ghats of India. The Western Ghats span several states, including Tamil Nadu, Kerala, and Karnataka. However, it is not naturally found in Andhra Pradesh
Source: The Hindu

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