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  • [5th December 2024] The Hindu Op-ed: Cash transfer schemes for women as a new poll plank

    PYQ Relevance:
    Q) Reforming the government delivery system through the Direct Benefit Transfer Scheme is a progressive step, but it has its limitations too. Comment. (UPSC CSE 2022)

    Mentor’s Comment: UPSC Mains have focused on the ‘cash transfer system for the welfare schemes to minimize corruption, eliminate wastage and facilitate reforms (in 2013), and ‘Direct Benefit Transfer Scheme is a progressive step’ (in 2022).

    In the Maharashtra and Jharkhand Assembly elections, cash transfer schemes for women became a key focus of political campaigns. In August, the Maharashtra government launched the ‘Mukhyamantri Majhi Ladki Bahin Yojana,’ giving ₹1,500 a month to eligible women in their Aadhaar-linked bank accounts. Similarly, the Jharkhand government introduced the ‘Jharkhand Mukhyamantri Maiya Samman Yojana,’ offering ₹1,000 a month to eligible women.

    Today’s editorial highlights why are cash transfer schemes for women gaining popularity across states? Is this a case of policy learning, or are state governments simply following the trend out of fear of missing out? Are we reaching a stage where there is no alternative approach to welfare?

    _

    Let’s learn!

    Why in the News?

    Direct cash transfer schemes are not a new idea in politics. According to Axis Bank, 14 states in India already have such programs, reaching nearly one-fifth of the country’s adult women.

    What are the reasons for the growing popularity of Cash Transfer Schemes?

    • Increased Voter Turnout: The turnout of women voters has significantly risen from 47% in 1962 to 66% in 2024, indicating a growing political engagement among women.
      • This trend is mirrored in state assembly elections, highlighting women’s increasing influence in the electoral process.
    • Direct Benefit Transfer (DBT) Efficiency: Cash transfer schemes, particularly through DBT, allow governments to bypass traditional bureaucratic structures that often involve middlemen. This method reduces corruption and ensures that funds reach beneficiaries directly, making these schemes more appealing for political leaders who want to demonstrate effective governance.
    • Immediate Political Gains: Cash transfers provide a quick and visible form of assistance that can be implemented rapidly compared to longer-term infrastructure projects or social services. This immediacy allows governments to showcase their commitment to welfare, thereby enhancing their political capital in the short term.
    • Standardization of Welfare Approaches: The proliferation of similar cash transfer schemes across states indicates a trend towards standardization in welfare policies, often referred to as “policy learning.” 
    • Fear of Missing Out (FOMO): As some states successfully implement these schemes and gain political traction, others may feel compelled to adopt similar measures to avoid losing electoral support.  
    • Addressing Structural Inequalities: Cash transfer schemes are often designed to address gender-specific issues such as female foeticide, child marriage, and educational disparities.  

    What are the significance of bypassing the Middleman?

    • Direct Benefit Transfer (DBT) Advantage: DBT allows governments to transfer cash directly to beneficiaries’ bank accounts, thus minimizing corruption and inefficiencies associated with traditional welfare distribution methods that often involve middlemen.
    • Reduction of Corruption: By eliminating intermediaries, DBT aims to reduce systemic corruption that has historically plagued welfare schemes in India, ensuring that funds reach intended recipients more effectively.
    • Personalized Political Relationships: Cash transfers help establish a direct relationship between political leaders and citizens, fostering personal loyalty through financial assistance. This dynamic is referred to as “techno-patrimonial,” where technology enhances individual connections with leaders.
    • Immediate Impact: Cash transfers provide immediate financial relief to beneficiaries, allowing governments to demonstrate their commitment to welfare without the long-term planning required for infrastructure projects or social services.

    What are the key challenges? 

    • Lack of Welfare Innovation: The proliferation of similar cash transfer schemes across various states indicates a stagnation in innovative welfare policies. This trend suggests a reliance on established models rather than exploring diverse approaches to address poverty and welfare needs.
    • Political Conformity: Even opposition-ruled states are adopting cash transfer schemes similar to those initiated by ruling parties, reflecting a broader acceptance of this welfare strategy without offering substantial alternatives.
    • Efficiency vs. State Capacity: While cash transfers may enhance efficiency in delivering aid, critics argue that they allow the state to avoid addressing deeper structural issues within its capacity to provide comprehensive welfare services.
    • Temporary Solutions: Cash transfers are seen as short-term solutions (or “bandages”) for poverty alleviation, potentially nudging citizens toward private alternatives for basic needs while failing to address systemic issues that require more robust state intervention.

    Way forward: 

    • Innovate and Diversify Welfare Strategies: Encourage states to develop innovative welfare policies beyond cash transfers, focusing on long-term solutions like skill development, education, and healthcare to address systemic poverty.
    • Strengthen State Capacity: Invest in enhancing the state’s institutional framework to deliver comprehensive welfare services efficiently, ensuring sustainable development and reducing reliance on temporary solutions.

    https://www.thehindu.com/opinion/lead/a-liberal-arts-degree-is-worth-much-more-than-realised/article68928000.ece

  • India’s strategic focus on West Africa

    Why in the News?

    Despite China’s increasing involvement in financing and infrastructure development, India continues to hold a significant position as one of Nigeria’s key partners in West Africa.

    What are the strategic objectives of India in West Africa?

    • Strengthening Bilateral Relations: India aims to enhance its strategic partnership with Nigeria, which is pivotal as Nigeria is both the largest economy and democracy in Africa. This partnership is expected to extend beyond Nigeria, influencing broader regional dynamics in West Africa.
    • Focus on Security Cooperation: Given the challenges of terrorism, piracy, and drug trafficking in Nigeria, India seeks to bolster security cooperation. This includes defence collaboration and joint efforts in counterterrorism operations against groups like Boko Haram.
    • Development Partnerships: India positions itself as a development partner by providing concessional loans and capacity-building programs, demonstrating a commitment to supporting Nigeria’s socio-economic growth.
    • Promotion of Global South Aspirations: Both India and Nigeria share common goals as leaders of the Global South, aiming to amplify their voices in international forums like the UN Security Council.

    How does India plan to enhance its economic ties with West African countries?

    • Diversifying Trade Relations: India plans to revitalize trade with Nigeria, which has seen a decline recently. Efforts include negotiating trade agreements such as the Economic Cooperation Agreement (ECA) and the Bilateral Investment Treaty (BIT) to facilitate investment and trade.
    • Sectoral Collaboration: The focus areas for economic collaboration include defence, energy, technology, health, and education. India’s PM discussions with the President of Nigeria emphasized leveraging India’s expertise in these sectors to foster mutual growth.
    • Infrastructure Development: India aims to support infrastructure development through concessional loans and technical assistance, building on existing projects that have benefited from Indian investment.
    • Cultural and People-to-People Exchanges: Enhancing cultural ties and promoting exchanges between citizens are also part of India’s strategy to strengthen bilateral relations, fostering goodwill and mutual understanding.

    What challenges does India face in its engagement with West Africa?

    • Geopolitical Competition: India’s engagement is challenged by China’s significant presence in Nigeria, where Chinese companies dominate various sectors including infrastructure and telecommunications. This competition complicates India’s efforts to establish itself as a key partner.
    • Economic Fluctuations: The decline in trade between India and Nigeria from $14.95 billion in 2021-22 to $7.89 billion in 2023-24 highlights vulnerabilities due to shifting global oil markets and increasing imports from other countries like Russia.
    • Political Instability: The political landscape in Nigeria can be unpredictable, posing risks for long-term investments and cooperation initiatives that require stability for successful implementation.
    • Capacity Constraints: While India offers developmental assistance, the effectiveness of these initiatives can be hindered by local capacity constraints in Nigeria, necessitating a tailored approach that considers local needs and capabilities.

    Way forward: 

    • Deepen Strategic Collaboration: Strengthen defence and security partnerships, diversify trade, and enhance collaboration in sectors like energy, technology, and health to counter China’s growing influence and foster mutual growth.
    • Focus on Regional Capacity Building: Expand developmental assistance with tailored initiatives addressing local needs, while supporting Nigeria’s stability through diplomatic engagement and joint Global South aspirations in international forums.

    Mains PYQ:

    Q Increasing interest of India in Africa has its pros and cons. Critically Examine. (UPSC IAS/2015)

  • Why some PLI schemes are in the slow lane?

    Why in the News?

    Six out of the 14 Production-Linked Incentive (PLI) schemes, including textiles, solar modules, IT hardware, automobiles, advanced chemical cells (ACC), and speciality steel, are progressing at a relatively slower pace.

    What are the primary reasons for the slow implementation of PLI schemes?

    • Stringent Eligibility Norms: Many industries have reported that the eligibility criteria for participation in PLI schemes are too stringent, which limits the number of companies that can benefit from the incentives.
    • Initial Setup Challenges: Establishing a domestic manufacturing base from scratch is a monumental task. Industries such as solar modules and advanced chemistry cells (ACC) require substantial time—ranging from one-and-a-half to three years—to set up manufacturing operations, delaying employment generation.
    • Access to Resources: Companies face difficulties in accessing critical resources, including Chinese machinery and skilled technicians, which can hinder their ability to ramp up production quickly.
    • Market Dependency: Some sectors remain heavily reliant on imports and have not yet transitioned to a self-sufficient manufacturing model, impacting their growth under the PLI framework.
    • Slow Disbursement of Funds: The initial years of the scheme saw minimal disbursement of funds, with only a small percentage of the total incentive outlay being paid out in the first two years.

    Which sectors are experiencing the most significant slowdowns, and why?

    • Textiles: This sector is struggling due to high competition and stringent norms that have slowed down participation and growth.
    • Solar Modules: Despite being a strategic sector for renewable energy, delays in establishing manufacturing capabilities have led to slow progress. 
      • As of June 2024, India’s solar module manufacturing capacity reached 77.2 GW, but the solar cell capacity was only 7.6 GW, leading to supply shortages that delayed projects.
    • Automobiles: While some companies are making progress, the automobile sector overall is hindered by initial setup challenges and fluctuating market conditions. 
      • Factors such as rising raw material costs and shifts in consumer preferences towards electric vehicles are creating a complex environment for traditional automakers.
    • Advanced Chemical Cells (ACC): Similar to solar modules, this sector faces long commissioning periods that delay employment outcomes. Because of the lengthy development timelines for manufacturing facilities and the need for substantial investment in technology are contributing to slower growth in this strategic area.
    • IT Hardware: Although recently upgraded with increased funding, it still lags behind in implementation compared to more successful sectors like mobile manufacturing.

    What measures can be taken to enhance the effectiveness of PLI schemes? (Way forward)

    • Revising Eligibility Criteria: Simplifying the eligibility requirements could encourage more companies, especially smaller firms, to participate in the schemes and benefit from incentives.
    • Increasing Support for Supply Chains: Establishing robust supply chains is crucial. The government could provide additional support to smaller suppliers who are essential for scaling up production across sectors.
    • Streamlining Resource Access: Facilitating easier access to necessary machinery and skilled labor can help companies ramp up production more effectively and reduce dependency on imports.
    • Regular Reviews and Adjustments: Continuous monitoring and adjustments based on sector performance can help identify bottlenecks early and allow for timely interventions.
    • Encouraging Ancillary Industries: Promoting the establishment of ancillary industries around larger beneficiaries could create additional jobs and enhance local manufacturing capabilities.

    Mains PYQ:

    Q  Can the strategy of regional-resource-based manufacturing help in promoting employment in India? (UPSC IAS/2019)

  • [pib] National Cooperative Policy

    Why in the News?

    • The Union Minister of Cooperation has provided crucial information regarding India’s National Cooperative Policy to the Lok Sabha.
      • The new National Cooperative Policy is almost ready and will be announced in 2-3 months.

    Update regarding the New National Cooperative Policy:

    Details
    National Level Committee Formation • A 48-member National Level Committee was formed under the chairmanship of Shri Suresh Prabhakar Prabhu.
    • The committee includes experts from the cooperative sector, representatives from National, State, District, and Primary level cooperative societies, and officers from Central Ministries/Departments.
    • The task of the committee was to formulate the New National Cooperation Policy for the development of the cooperative sector in India.
    • 17 meetings and 4 regional workshops were conducted across the country to finalize the draft report of the policy.
    Aims and Objectives • Revitalize the cooperative sector and enhance its efficiency at national, state, district, and primary levels.
    • Strengthen the cooperative movement in India by creating a structured policy that fosters growth and sustainability.
    • Establish financial viability and governance mechanisms for cooperatives.
    • Ensure cooperative federalism by allowing state cooperatives to function autonomously, avoiding undue centralization.
    Features of the Policy • The policy adopts an inclusive approach, including all levels of cooperatives from district to primary.
    • Close collaboration with State Governments to promote the cooperative sector and implement cooperative federalism.
    • The draft policy was developed after extensive consultations, ensuring broad public and expert participation.
    Provisions under the Policy • Strengthening Cooperative Structure: Set up District Central Cooperative Banks (DCCBs) and district milk producers’ unions in all uncovered districts. NABARD will prepare an action plan for this.
    • Expansion of Multipurpose PACS: New multipurpose PACS, primary dairy/fishery cooperative societies will be established in uncovered Panchayats/villages across India within the next five years.

     

    PYQ:

    [2011] In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

    (a) Commercial Banks

    (b) Cooperative Banks

    (c) Regional Rural Banks

    (d) Microfinance Institutions

  • [pib] Maha Kumbh Mela, 2025

    Why in the News?

    The 2025 Maha Kumbh Mela will take place in Prayagraj from January 13 to February 26.

    [pib] Maha Kumbh Mela, 2025

    About Kumbh Mela

    Details A major pilgrimage and festival in Hinduism, occurring four times in twelve years at different locations in India. It attracts millions of pilgrims for spiritual purification.

    Types of Kumbh Mela:

      1. Kumbh Mela: Regular festival, celebrated every 12 years at one of the four locations.
      2. Maha Kumbh Mela: The largest, celebrated once every 12 years at Prayagraj (confluence of Ganges, Yamuna, and Sarasvati).
      3. Ardh Kumbh Mela: Held every 6 years in Prayagraj (half of the full Kumbh Mela).
    • Purna Kumbh Mela: Held when a complete 12-year cycle is completed.

    Locations:  Kumbh Mela rotates between four cities:

      1. Haridwar (on the banks of the Ganges),
      2. Prayagraj (confluence of the Ganges, Yamuna, and the mythical Sarasvati river),
      3. Ujjain (on the banks of the Shipra River),
    • Nashik (on the banks of the Godavari River).

    Key Rituals:

    • Shahi Snan (Royal Bath) – A ritual where pilgrims in Akharas (processions) bathe in the holy river.
    • Worship and Prayers – Pilgrims offer prayers along riverbanks, attend spiritual discourses, and perform fire rituals.
    • Religious Processions – Several religious processions involving saints, gurus, and devotees take place.
    • Community Prayers and Spiritual Discourses – Saints and religious leaders conduct spiritual teachings for the devotees.
    Significance and Features  
    • Spiritual Significance: Considered a sacred event for Hindus, aimed at spiritual cleansing, salvation, and liberation from the cycle of rebirth (Moksha).
    • Cultural Unity: It is a remarkable event showcasing India’s unity and diversity, where millions of people from across the world come together.
    • Mass Gathering: It holds the Guinness World Record for the largest peaceful gathering, with millions of pilgrims attending the event. In 2019, Kumbh Mela witnessed the largest peaceful public gathering ever recorded, with around 120 million people.
    • Pilgrimage Tourism – The Kumbh Mela also significantly boosts local tourism, with a major influx of national and international pilgrims, contributing to local and national economies.

    UNESCO Recognition – Kumbh Mela was recognized as an Intangible Cultural Heritage of Humanity by UNESCO in 2017.

  • What is Cash Reserve Ratio (CRR)?

    Why in the News?

    • The Reserve Bank of India (RBI) began its three-day monetary policy review.
      • There is increasing speculation that the RBI may announce a cut in the Cash Reserve Ratio (CRR) to ease liquidity pressures.

    What is Cash Reserve Ratio (CRR)?

    • CRR is the percentage of a bank’s total deposits that it must maintain as liquid cash with the Reserve Bank of India (RBI) as a reserve.
    • It is a tool used by the RBI to manage inflation and check excessive lending by banks.
      • It serves as a safety net during times of banking stress, ensuring banks have enough liquidity for day-to-day operations.
    • As of now, the CRR is set at 4.5% of a bank’s Net Demand and Time Liabilities (NDTL).
    • Banks do not earn interest on the amount they maintain as CRR with the RBI.
    • CRR Requirements for Different Types of Banks:
      • Scheduled Commercial Banks (SCBs): Includes Public Sector Banks (PSBs), Private Sector Banks (PVBs), Regional Rural Banks (RRBs), Small Finance Banks (SFBs), Payments Banks, Primary (Urban) Co-operative Banks (UCBs), State Co-operative Banks (StCBs), and District Central Co-operative Banks (DCCBs).
      • Non-Scheduled Co-operative Banks & Local Area Banks: They must maintain CRR with themselves or with the RBI.
    • Restrictions on CRR Funds
      • Banks cannot lend the funds held as CRR to corporates or individual borrowers.
      • The money held under CRR cannot be used for investment purposes by the bank.
      • No Interest is earned on the funds maintained as CRR by banks with the RBI.

    What is Incremental CRR (I-CRR)?

    • Introduced temporarily on August 10, 2023, to absorb surplus liquidity in the banking system.
    • Banks were required to maintain 10% I-CRR on the increase in their NDTL between May 19, 2023, and July 28, 2023.
    • The I-CRR was implemented from August 12, 2023, and applied during periods of excess liquidity in the financial system.

    Impacts of Declining CRR on the Economy

    • Positive Impacts: 
      • Increased Bank Liquidity: A reduction in CRR frees up more funds for banks, improving credit availability and promoting investment and consumption.
      • Stimulus for Economic Growth: With more funds to lend, businesses can secure loans more easily, boosting economic activity and encouraging growth across sectors.
      • Lower Interest Rates: As banks have more liquidity, they may lower interest rates on loans, making credit cheaper and encouraging investment and consumer spending.
    • Negative Impacts: 
      • Potential Inflationary Risks: Increased lending and spending can raise demand, which, if not matched by supply, can lead to inflationary pressures in the economy.
      • Asset Bubbles: Excess liquidity may result in overvalued assets like stocks or real estate, creating the risk of unsustainable price increases and potential market instability.

    PYQ:

    [2010] When the Reserve Bank of India announces an increase of the Cash Reserve Ratio, what does it mean?

    (a) The commercial banks will have less money to lend

    (b) The Reserve Bank of India will have less money to lend

    (c) The Union Government will have less money to lend

    (d) The commercial banks will have more money to lend

  • [4th December 2024] The Hindu Op-ed: Reflections on Baku’s ‘NCQG outcome’

    PYQ Relevance:
    Q)  Describe the major outcomes of the 26th session of the Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC). What are India’s commitments at this conference? (UPSC CSE 2021)

    Mentor’s Comment:  UPSC Mains have focused on India’s changing policy towards climate change (2022) and COP26 (2021).

    The recent UN Climate Change Conference (COP29) held in Baku, Azerbaijan, concluded with significant yet contentious outcomes, particularly regarding the New Collective Quantified Goal (NCQG) for climate finance. This editorial reflects on the implications of the NCQG and the broader context of climate negotiations.

    This editorial content can be used to present the significance of ‘Climate finance for developping countries’ and the challenges associated at Global stage.

    _

    Let’s learn!

    Why in the News?

    COP29 dubbed the “Finance COP,” was expected to deliver an ambitious outcome on the NCQG (New Collective Quantified Goal on Climate Finance). However, it fell short by neglecting equitable burden-sharing and climate justice, overlooking the financial needs of the Global South.

    Why do the Developing countries need Finance for climate change? 

    • Upfront Costs of Clean Technologies: Renewable energy technologies often have high upfront costs, which require government support to make them affordable to consumers, especially in developing countries.
    • Long-term Benefits but High Initial Investment: While renewable technologies have lower long-term operational and fuel costs, the high initial investment remains a significant barrier.
    • Financial Gaps and Urgency: Developing countries need urgent upscaling of finance to meet transformational goals. The pressure on government resources is compounded by the need for fiscal prioritization toward development activities.
    • Debt Issues and Risk: High debt burdens in developing countries prevent them from accessing affordable capital, making it difficult to incentivize private investment in green technologies.
    • High Cost of Capital: Developing countries face much higher lending rates, limiting their ability to access financial markets at favourable rates for climate action.
    • International Support Needed: Finance from developed countries, particularly in the form of public grants instead of loans, is essential to support the transition to green energy in developing nations.

    What are the roles of the NCQG (New Collective Quantified Goal on Climate Finance)?

    • Origins and Rationale: The NCQG was designed to address the shortcomings of previous climate finance pledges, including the $100 billion annual commitment made at Cancun in 2010. The NCQG aims to establish clearer, more accountable climate finance goals.
      • NCQG aims to establish a new financial target post-2025 to support developing countries, succeeding the $100 billion annual commitment from developed nations.
    • Addressing Climate Finance Gaps: NCQG seeks to bridge climate finance gaps by ensuring both the quantity and quality of financial instruments meet developing nations’ needs.
      • By setting a collective goal, NCQG promotes trust and cooperation among nations to effectively implement the Paris Agreement.
    • Catalyzing Private Investment: NCQG encourages private sector investment by signalling stability and commitment to climate finance.
    • Supporting Climate Resilience: The goal help developing countries adapt to climate impacts and transition to low-carbon economies with necessary funding.
    • Upholding Principles of Equity: NCQG is grounded in Common but Differentiated Responsibilities (CBDR), ensuring tailored support for developing countries based on their specific needs and capacities.

    What are the challenges?

    • Financial Needs of Developing Countries: The UNFCCC’s Second Needs Determination Report estimated that $5 trillion to $7 trillion would be required by 2030 to meet the needs of 98 developing countries. Developing nations have requested $1.3 trillion annually by 2030.
    • Disappointing Outcome at COP29: Developed countries agreed to a $300 billion annual commitment by 2035, which is seen as insufficient compared to the needs of the developing world. This amount does not represent a significant shift in financial flows and falls short of transformative action.
    • Lack of Commitment to Climate Justice: The NCQG falls short in terms of equitable burden-sharing, failing to adequately recognize the financial needs of the global south and climate justice.

    Way forward: 

    • Increase Financial Commitments: Developed countries must significantly enhance their financial commitments, moving beyond the $300 billion annually agreed at COP29, and align with the $1.3 trillion requested by developing nations to meet urgent climate goals.
    • Ensure Equitable Burden-Sharing: Future climate finance discussions must prioritize climate justice, adhering to the principles of Common but Differentiated Responsibilities and Respective Capabilities (CBDR-RC), ensuring that developed countries take on a larger share of the financial burden.
    • Focus on Grants over Loans: Developed countries should provide more finance in the form of public grants rather than loans, addressing the debt burdens of developing countries and enabling them to invest in green technologies without further exacerbating fiscal constraints.

    https://www.thehindu.com/opinion/lead/schooling-in-india-in-times-of-poor-air-quality/article68918906.ece

  • Bank Bill passes LS, allows one account, 4 nominees

    Why in the News?

    The Lok Sabha passed the Banking Laws (Amendment) Bill, 2024, marking the first piece of legislation to be approved during the Winter Session after the resolution of a week-long impasse.

    What are the key features of the Banking Laws (Amendment) Bill, 2024?

    • Nomination Provisions: The Bill allows bank account holders to nominate up to four individuals for their accounts, with options for either successive or simultaneous nominations. However, locker holders will only have the option for successive nominations.
    • Redefinition of “Substantial Interest”: The threshold for defining “substantial interest” for directorships is proposed to increase from ₹5 lakh to ₹2 crore, reflecting current economic conditions.
    • Tenure of Directors: The tenure of directors (excluding chairpersons and whole-time directors) in cooperative banks will be extended from eight years to ten years, aligning with provisions in the Constitution (Ninety-Seventh Amendment) Act, 2011.
    • Common Directorships: The Bill permits directors of Central Cooperative Banks to serve on the boards of State Cooperative Banks under certain conditions.
    • Auditor Remuneration: It grants banks greater flexibility in determining the remuneration for statutory auditors, which was previously regulated by the Reserve Bank of India (RBI) and the central government.
    • Reporting Dates: The reporting dates for regulatory compliance will shift from the second and fourth Fridays to the 15th and last day of every month, streamlining oversight processes.

    What are the reasons for this amendment?

    • Enhancing Governance: The amendments aim to strengthen governance standards within banks, ensuring better protection for depositors and investors while improving audit quality in public sector banks.
    • Customer Convenience: By allowing multiple nominations, the Bill intends to simplify inheritance processes related to bank deposits and reduce instances of unclaimed deposits after an account holder’s demise.
    • Alignment with Constitutional Provisions: Increasing director tenures in cooperative banks aligns banking regulations with constitutional amendments that govern cooperative societies.

    What would be the significant impact of this amendment?

    • Improved Customer Experience: The ability to nominate multiple individuals enhances customer convenience and ensures smoother transitions in account management after an account holder’s death.
    • Strengthened Governance Framework: By redefining substantial interest and increasing director tenures, the Bill aims to foster a more robust governance framework within cooperative banks, potentially leading to better decision-making and accountability.
    • Regulatory Compliance Efficiency: Changing reporting dates is expected to improve compliance efficiency, allowing banks to better align their reporting practices with regulatory requirements.

    What is the criticism faced by the Banking Laws (Amendment) Bill, 2024?

    • Concerns Over Financial Practices: Opposition leaders raised concerns regarding rising imports from China amid strained relations and questioned broader financial practices like demonetization and electoral bonds.
    • Banking Fees and Cybersecurity Risks: Critics highlighted issues related to fees for basic banking services such as ATM withdrawals and SMS alerts, particularly emphasizing vulnerabilities faced by senior citizens concerning cyber fraud.
    • Economic Context: Some opposition members criticized the timing of the Bill against a backdrop of economic challenges such as inflation exceeding growth rates, potentially leading to stagflation. They expressed skepticism about whether these amendments would effectively address underlying economic issues.

    Way forward: 

    • Addressing Broader Economic Concerns: The government should focus on macroeconomic reforms to manage inflation and foster sustainable growth. The Banking Laws Amendment should be complemented by policies that address the root causes of economic challenges, ensuring the banking sector thrives amidst broader financial stability.
    • Strengthening Cybersecurity and Customer Protection: Banks should enhance security measures, especially for senior citizens, to safeguard against rising cyber fraud.

  • World Wildlife Conservation Day

    Why in the News?

    • World Wildlife Conservation Day (December 4) reminds us to focus on preserving and protecting the critically endangered species in India and globally.
      • The theme for this year is “Connecting People and Planet: Exploring Digital Innovation in Wildlife Conservation”.

    World Wildlife Conservation Day: Key Facts

    • Observed annually on December 4th.
    • Purpose: Raise awareness about the importance of wildlife conservation and the protection of endangered species and their habitats.
    • It was established in 2012 by the UN, coinciding with the anniversary of the 1948 signing of CITES (Convention on International Trade in Endangered Species).
    • It supports global efforts for wildlife conservation, aligns with SDG 15 (life on land) and SDG 14 (life below water).

    Aims for India’s Critically Endangered Species

    • As of 2022, 73 species in India are classified as critically endangered, meaning they are at highest risk of extinction in the wild.
      • The number of critically endangered species has risen from 47 in 2011, partly due to better data availability and monitoring.
    • India has 9 critically endangered mammal species, out of which 8 are endemic (found only in specific regions within India).
      • These include: Kashmir Stag (Hangul), Malabar Large-spotted Civet, Andaman Shrew, Jenkin’s Shrew, Nicobar Shrew, Namdapha Flying Squirrel, Large Rock Rat, and Leafletted Leaf-nosed Bat.
    • Though these animals receive significant attention for tourism purposes, they are only three of the critically endangered species in India.
      • Lions: Asiatic lions in the Gir Forest are critically endangered.
      • Tigers: Bengal tigers are also listed as critically endangered.
      • Cheetahs: They are also part of India’s endangered wildlife.
    • Great Indian Bustard is a bird facing significant threats due to power lines in Rajasthan.

    PYQ:

    [2014] The most important strategy for the conservation of biodiversity together with traditional human life is the establishment of:

    (a) biosphere reserves

    (b) botanical gardens

    (c) national parks

    (d) wildlife sanctuaries

  • Marburg Virus outbreak in Rwanda

    Why in the News?

    An outbreak of Marburg Virus (Bleeding Eyes) disease (MVD) has killed and infected many in Rwanda.

    rwanda
    Location of Rwanda

    About Marburg Virus:

    Overview • Causes Marburg Virus Disease (MVD), also known as Marburg Hemorrhagic Fever.
    • Belongs to the filovirus family (same as Ebola).
    • Discovered during outbreaks in 1967 in Marburg and Frankfurt, Germany.
    • Case Fatality Rate ranges from 24% to 88%, depending on the strain and treatment effectiveness.How does it spread?• Animal to Human Transmission: Spread primarily from Rousettus bats, especially Egyptian fruit bats found in caves or mines.
    • Human to Human Transmission: Spread through direct contact with blood and bodily fluids (saliva, vomit, feces, semen, and breast milk). Also transmitted indirectly through contaminated surfaces or clothing.
    Symptoms and Treatment • Early signs include fever, headache, muscle aches, chills, nausea, vomiting, and severe diarrhoea.

    • Progresses to bleeding from various body parts, and death typically occurs 8-9 days after symptoms due to blood loss and organ failure.
    • No approved vaccine or antiviral treatment. Supportive care includes hydration, symptom management, and blood transfusions. Experimental vaccines are being studied.
    Why is it a Global Concern? • High Fatality Rate: MVD’s case fatality rate (24%-88%) makes it one of the deadliest diseases.
    • Spread: Ongoing outbreaks, primarily in Africa, but now affecting Rwanda and Tanzania.
    • Public Health Threat: Human-to-human transmission and rapid spread pose significant challenges.
    • Economic Impact: Outbreaks disrupt local economies, healthcare systems, and global trade due to travel restrictions and quarantine measures.

     

    PYQ:

    [2015] Among the following, which were frequently mentioned in the news for the outbreak of Ebola virus recently?

    (a) Syria and Jordan

    (b) Guinea, Sierra Leone and Liberia

    (c) Philippines and Papua New Guinea

    (d) Jamaica, Haiti and Surinam