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GS Paper: GS3-17.Awareness in the fields of IT, Space, Computers, Robotics, Nano-technology, Bio-technology and issues relating to Intellectual Property Rights.

  • Analysing the success of NPCI

    The article tracks the evolution of digital payments system in India and the transformational role played by the NPCI in it.

    Adoption of digital payments in India

    • Digital payments have found strong ground in India reducing all other modes of payments to the background.
    • Through a faster system of simultaneous debits and credits, the money value is transferred from one account to the other across banks.
    • With such versatility and ease of settling financial transactions, the growth of digital payments is going to be phenomenal, supported by banks and Fin-Tech companies.

    Evolution of digital payments in India

    • A major thrust toward large value payments was effected through the Real Time Gross Settlement System, or RTGS, launched by the RBI in March 2004.
    • The large value payments on stock trading, government bond trading and other customer payments were covered under the RTGS.
    • It substantially reduced the time taken for settlements.
    • Around the same time, the RBI introduced National Electronic Funds Transfer, or NEFT to support retail payments.
    • Now, NEFT is available round the clock and RTGS will follow from December 2020 — only a few countries have achieved this.
    • These systems were seeded and reinforced with the setting up of the umbrella retail payments institution: National Payments Corporation of India (NPCI).
    • NPCI was set up by 10 lead banks at the instance of the RBI in 2009.
    •  The NPCI as a not-for-profit company

    How NPCI transformed retail payment systems in India

    • The NPCI’s success against deeply entranced formidable international players, supported by innovative technology, viz. Unified Payments Interface (UPI) and Immediate Payment Service (IMPS), is well recognised by central banks in many other countries.
    • The Bank for International Settlements’s endorsement of the NPCI model in 2019 is a major accolade.
    • With digital payment being a public good like currency notes, it was necessary that the corporation was fully supported by the RBI and the government as an extended arm of the sovereign.
    • It was also necessary to contain expectations on profits, avoiding direct or indirect control by powerful private interests could dilute the public good character of the outfit.

    Issue of converting NPCI into for-profit

    • Converting NPCI intro for-profit company will be a retrograde step with huge potential for loss of consumer surplus along with other strategic implications.
    • Instead the strategy should be to assist the NPCI financially, either by the RBI or the government, to provide retail payment services at reduced price (in certain priority areas).
    • This may also help support expansion of the payment system network and infrastructure in rural and semi-urban areas in partnership with Fin-Tech companies and banks.

    Issue fo MDR

    • In Budget 2020-21, the government prescribed zero Merchant Discount Rate (MDR) for RuPay and UPI, both NPCI products.
    • Zero MDR on UPI and RuPay will help to popularise digital payments benefiting both customers and merchants.
    • There is justification in this zero MDR prescription by the government.
    • It is justified because depositors implicitly pay around 3% to banks as net interest margin, being the difference between saving and risk free bond rate, for enjoying certain payments services traditionally.
    • When banks enjoy such a huge amount of current account savings account (CASA) deposits, in return, is it not incumbent on them to provide such payment services?
    • The government left out other providers of digital payment products from this MDR prescription.
    • Taking advantage of this dichotomy, many issuing banks switched to mainly Visa and Master cards for monetary gains.
    • As customers were induced by such supplier banks, it created a kind of indirect market segmentation and cartel formation, though there is hardly any quality difference in payment products.
    • It may be noted that even the European Central Bank imposed a ceiling on MDR for all, protecting consumer interest.
    • It is hoped that the government will take corrective action in the next Budget to ensure a level playing field and to relieve the NPCI from such policy-induced market imperfection.

    Pricing for digital payments

    • The ideal pricing for digital payments products should be based on an analysis of-(i) producer surplus (ii) consumer surplus (i.e. gain or loss of utility due to pricing) (iii) social welfare for which we need cost-volume-price data.
    • A factor which needs to be reckoned is the float funds digital payments allow (cash withdrawal is a drain on the banking system), which is a source of sizeable income for banks.
    • The RBI will do well to study and arrive at a rational structure of pricing including MDR (possibly also penalty on default by customer).

    Consider the question “Elaborate on how the NPCI has been successful in transforming the digital payment landscape in the country through innovations? What are the challenges facing retail payments infrastructures?”

    Conclusion

    Given that the digital payment system is like a national superhighway, for which the government has a crucial role to play in protecting consumers against exploitation.

    Back2Basics: RTGS and NEFT

    • With NEFT (National Electronic Funds Transfer)
      you can transfer any amount to the recipient’s account in a one-on-one transfer basis.
    • NEFT transactions don’t have a maximum limit for funds that can be transferred in a single day.
    • The NEFT system is available round the clock throughout the year on all days (24x7x365).
    • Funds are transferred in batches that are settled in 48 half-hourly time slots throughout the day.
    • There is no maximum or minimum limit on the amount of funds that could be transferred through NEFT.

    RTGS (Real Time Gross Settlement)

    • Business owners can use RTGS when they need to transfer large amounts instantly.
    • One advantage that RTGS has over the other methods is the transaction speed, since the entire amount is transferred in real time.
    • The available hours for RTGS transactions vary based on the individual banks and their branches.
    • There’s a minimum limit of Rs. 2 lakhs for RTGS transactions, and there’s no maximum limit as such.

    What is MDR?

    • The merchant discount rate (MDR) is charged to merchants for processing debit and credit card transactions.
    • To accept debit and credit cards, merchants must set up this service and agree to the rate.
    • The merchant discount rate is a fee, typically between 1%-3%, that merchants must consider when managing business costs

  • New Shephard Rocket System

    New Shephard, a rocket system meant to take tourists to space successfully completed its seventh test launch.

    Note the features of the Karman Line. It is a new terminolgy in our recent space vocab.

    What is New Shephard?

    • New Shephard has been named after astronaut Alan Shephard, the first American to go to space, and offers flights to space over 100 km above the Earth and accommodation for payloads.
    • Essentially, it is a rocket system that has been designed to take astronauts and research payloads past the Karman line – the internationally recognised boundary of space.
    • The idea is to provide easier and more cost-effective access to space meant for purposes such as academic research, corporate technology development and entrepreneurial ventures among others.
    • It is built by Amazon founder Jeff Bezos’s Space Company called Blue Origin.
    • In 2018, Blue Origin was one of the ten companies selected by NASA to conduct studies and advance technologies to collect process and use space-based resources for missions to the Moon and Mars.

    How does it work?

    • The rocket system consists of two parts, the cabin or capsule and the rocket or the booster.
    • The cabin can accommodate experiments from small mini payloads up to 100 kg.
    • The cabin is designed for six people and sits atop a 60-feet tall rocket and separates from it before crossing the Karman line, after which both vehicles fall back to the Earth.
    • The system is a fully reusable, vertical takeoff and vertical landing space vehicle that accelerates for about 2.5 minutes before the engine cuts off.
    • After separating from the booster, the capsule free falls in space, while the booster performs an autonomously controlled vertical landing back to Earth.
    • The capsule, on the other hand, lands back with the help of parachutes.

    Back2Basics: Karman line

    • The Karman line is an attempt to define a boundary between Earth’s atmosphere and outer space.
    • The line is named after Theodore von Kármán (1881–1963), a Hungarian American engineer and physicist, who was active primarily in aeronautics and astronautics.
    • He was the first person to calculate the altitude at which the atmosphere becomes too thin to support aeronautical flight and arrived at 83.6 km (51.9 miles) himself.

    Locating the line

    • The Fédération Aéronautique Internationale (FAI) defines Karman Line as the altitude of 100 kilometres (62 miles; 330,000 feet) above Earth’s mean sea level.
    • However, other organizations do not use this definition. There is no international law defining the edge of space, and therefore the limit of national airspace.
    • For instance, the US Air Force and NASA define the limit to be 50 miles (80 km) above sea level.
    • The line is approximately at the turbopause, above which atmospheric gases are not well-mixed.

  • Mars ‘Opposition’ Event

    Due to an event referred to as “opposition”, which takes place every two years and two months, Mars will shine the brightest.

    Try this question from CSP 2017:

    Q.Which region of Mars has a densely packed river deposit indicating this planet had water 3.5 billion years ago?

    (a) Aeolis Dorsa (b) Tharsis (c) Olympus Mons (d) Hellas

    What is the Opposition Event?

    • ‘Opposition’ is the event when the sun, Earth and an outer planet (Mars in this case) are lined up, with the Earth in the middle.
    • The time of opposition is the point when the outer planet is typically also at its closest distance to the Earth for a given year, and because it is close, the planet appears brighter in the sky.
    • An opposition can occur anywhere along Mars’ orbit, but when it happens when the planet is also closest to the sun, it is also particularly close to the Earth.
    • It will outshine Jupiter, becoming the third brightest object (moon and Venus are first and second, respectively) in the night sky during the month of October.

    When does opposition happen?

    • Earth and Mars orbit the sun at different distances (Mars is farther apart from the sun than Earth and therefore takes longer to complete one lap around the sun).
    • In fact, the opposition can happen only for planets that are farther away from the sun than the Earth.
    • In the case of Mars, roughly every two years, the Earth passes between sun and Mars, this is when the three are arranged in a straight line.
    • Further, as the Earth and Mars orbit the sun, there comes a point when they are on the opposite sides of it, and hence very far apart. At its farthest, Mars is about 400 million km from the Earth.
    • In case of opposition, however, Mars and Sun are on directly opposite sides of the Earth. In other words, the Earth, sun and Mars all lie in a straight line, with the Earth in the middle.

    Logic behind the name

    • As per NASA, from an individual’s perspective on the Earth, Mars rises in the east and after staying up all night, it sets in the west just as the sun rises in the east and sets in the west.
    • Because from the perspective on Earth, the sun and Mars appear to be on the opposite sides of the sky, Mars is said to be in “opposition”.
    • Essentially, the opposition is a reference to “opposing the sun” in the sky.

  • Need for guidelines for gene-editing research in India

    The Nobel Prize in Chemistry for 2020 has been awarded for the discovery of CRISPR Cas9. The two scientists have pioneered the use of CRISPR  – Cas9 (CRISPR-associated protein 9) system as a gene-editing tool.

    Background of discovery of CRISPR

    • In 1987a group of Japanese researchers observed an unusual homologous DNA sequence bearing direct repeats with spacing in a eubacterial gene.
    • In subsequent years CRISPR was discovered and showed to be a bacterial adaptive immune system and to act on DNA targets.
    • A notable discovery on the use of CRISPR as a gene-editing tool was by a Lithuanian biochemist, Virginijus Šikšnys, in 2012.
    • Šikšnys showed that Cas9 could cut purified DNA in a test tube, the same discovery for which both Charpentier and Doudna were given the credit.
    • Thus, the exclusion of Siksnys from this year’s Nobel is going to raise discussions.

    Issue of gene-edited babies

    • The world was alarmed by such a mission in 2018 when Chinese scientist edited genes in human embryos using the CRISPR-Cas9 system which resulted in the birth of twin girls.
    • The incident became known as the case of the first gene-edited babies of the world.
    • Following the incident, the World Health Organization formed a panel of gene-editing experts.
    • The expert panel suggested a central registry of all human genome editing research in order to create an open and transparent database of ongoing work.

    Guidelines and regulations in India

    • In India, several rules, guidelines, and policies are notified under the Environment Protection Act, 1986 to regulate genetically modified organisms.
    • The above Act and the National Ethical Guidelines for Biomedical and Health Research involving human participants, 2017, by the Indian Council of Medical Research (ICMR), and the Biomedical and Health Research Regulation Bill implies regulation of the gene-editing process.
    • This is especially so in the usage of its language “modification, deletion or removal of parts of heritable material”.
    • However, there is no explicit mention of the term gene editing.

    Consider the question “What is CRISPR-Cas9? How it helps in the gene-editing? What are the concerns with use of it for gene-editing?”

    Conclusion

    It is time that India came up with a specific law to ban germline editing and put out guidelines for conducting gene-editing research giving rise to modified organisms.

    Back2Basics: What is CRISPR?

    • CRISPRs: “CRISPR” stands for “clusters of regularly interspaced short palindromic repeats.”
    • It is a specialized region of DNA with two distinct characteristics: the presence of nucleotide repeats and spacers.
    • Repeated sequences of nucleotides — the building blocks of DNA — are distributed throughout a CRISPR region.
    • Spacers are bits of DNA that are interspersed among these repeated sequences.
    • In the case of bacteria, the spacers are taken from viruses that previously attacked the organism.
    • They serve as a bank of memories, which enables bacteria to recognize the viruses and fight off future attacks.

  • FELUDA test for Covid-19

    Union Health Ministry will soon roll out the FELUDA paper strip test for SARS-CoV-2 diagnosis.

    Try this PYQ:

    Q.What is Cas9 protein that is often mentioned in news?

    (a) A molecular scissors used in targeted gene editing

    (b) A biosensor used in the accurate detection of pathogens in patients

    (c) A gene that makes plants pest-resistant

    (d) A herbicidal substance synthesized in genetically modified crops

    FELUDA test

    • FELUDA is the acronym for FNCAS9 Editor Linked Uniform Detection Assay.
    • It uses indigenously developed CRISPR gene-editing technology to identify and target the genetic material of SARS-CoV2, the virus that causes Covid-19.
    • According to CSIR, the test matches accuracy levels of RT-PCR tests, considered the gold standard in the diagnosis of Covid-19, has a quicker turnaround time and requires less expensive equipment.
    • It is also the world’s first diagnostic test to deploy a specially adapted Cas9 protein to successfully detect the virus.

    How does it work?

    • The Feluda test is similar to a pregnancy test strip that will just change colour upon detection of the virus and can be used in a simple pathological lab.
    • The Cas9 protein is bar-coded to interact with the SARS-CoV2 sequence in the patient’s genetic material.
    • The Cas9-SARS-CoV2 complex is then put on the paper strip, where using two lines (one control, one test) makes it possible to determine if the test sample was infected.

    Back2Basics: CRISPR technology

    • CRISPR is a short form for Clustered Regularly Interspaced Short Palindromic Repeats.
    • It is a gene-editing technology and finds its use in correcting genetic defects and treating and preventing the spread of diseases.
    • The technology can detect specific sequences of DNA within a gene and uses an enzyme functioning as molecular scissors to snip it.
    • It also allows researchers to easily alter DNA sequences and modify gene function.
    • Moreover, the technology can also be configured for detection of multiple other pathogens in the future.

  • What is Raychaudhuri Equation?

    The Raychaudhuri Equation in General Relativity, derived by Raychaudhuri is in the spotlight after 2020 Physics Nobel was awarded to Penrose for throwing light on Black Holes.

    Try this MCQ:

    Q.The Raychaudhuri Equation is sometimes seen in news is related to:

    Artificial Intelligence/Cloud Computing/Quantum Mechanics/Space Sciences

    What is Raychaudhuri Equation?

    • Raychaudhuri (1923–2005) was an Indian physicist, known for his research in general relativity and cosmology.
    • In general relativity, the Raychaudhuri equation is a fundamental result describing the motion of nearby bits of matter.
    • It was discovered independently by the Indian physicist Amal Kumar Raychaudhuri and the Soviet physicist Lev Landau.
    • The equation offers a simple and general validation of our intuitive expectation that gravitation should be a universal attractive force between any two bits of mass-energy in general relativity, as it is in Newton’s theory of gravitation.

  • [pib] Bio-Pesticide Formulation using Verticillium Lecanii

    Indian researchers have successfully developed new Aqueous Suspension formulation technology of bio-pesticide based on entomopathogenic fungus Verticillium lecanii.

    Try this PYQ:

    Q.Recently, there was a growing awareness in our country about the importance of Himalayan nettle (Girardinia diversifolia) because it is found to be a sustainable source of

    (a) anti-malarial drug

    (b) biodiesel

    (c) pulp for paper industry

    (d) textile fibre

    Verticillium lecanii

    • This bio-pesticide formulation has been found very effective in controlling various insects in seed spice crops (fenugreek, cumin, and coriander).
    • It has a good shelf life, safe to user & environment and it may be effectively used for controlling different agricultural insects especially in seed spice crops.
    • This bio-pesticide may be used as a safer alternative to chemical pesticides to minimize pesticide residue problem.
    • Besides, it may be used as a key input for crop protection from insects pest in organic agriculture and Integrated Pest Management.

  • Nobel Prize in Chemistry for CRISPR Technology

    French-American duo Emmanuelle Charpentier and Jennifer Doudna have been awarded the 2020 Nobel Prize for the chemistry of CRISPR, which allows scientists to ‘cut-paste’ inside a genetic sequence.

    Try this PYQ:

    Q.What is Cas9 protein that is often mentioned in news?

    (a) A molecular scissors used in targeted gene editing

    (b) A biosensor used in the accurate detection of pathogens in patients

    (c) A gene that makes plants pest-resistant

    (d) A herbicidal substance synthesized in genetically modified crops

    The CRISPR technology

    • The CRISPR is an acronym for Clustered Regularly Interspaced Short Palindromic Repeats, developed in the year 2012
    • CRISPR has made gene editing very easy and simple, and at the same time extremely efficient.
    • The technology works in a simple way — it locates the specific area in the genetic sequence which has been diagnosed to be the cause of the problem, cuts it out, and replaces it with a new and correct sequence that no longer causes the problem.
    • The technology replicates a natural defence mechanism in some bacteria that use a similar method to protect itself from virus attacks.

    Working of CRISPR

    • An RNA molecule is programmed to locate the particular problematic sequence on the DNA strand.
    • A special protein called Cas9, often described in popular literature as ‘genetic scissor’, is used to break and remove the problematic sequence.
    • A DNA strand, when broken, has a natural tendency to repair itself. But the auto-repair mechanism can lead to the re-growth of a problematic sequence.
    • Scientists intervene during this auto-repair process by supplying the desired sequence of genetic codes, which replaces the original sequence.
    • It is like cutting a portion of a long zipper somewhere in between and replacing that portion with a fresh segment.
    • Because the entire process is programmable, it has a remarkable efficiency and has already brought almost miraculous results.

    Uses of CRISPR

    • There are a whole lot of diseases and disorders, including some forms of cancer, that are caused by an undesired genetic mutation.
    • These can all be fixed with this technology. There are vast applications elsewhere as well. Genetic sequences of disease-causing organisms can be altered to make them ineffective.
    • Genes of plants can be edited to make them withstand pests, or improve their tolerance to drought or temperature.

    Ethical concerns

    • In November 2018, a Chinese researcher in Shenzen created an international sensation with his claim that he had altered the genes of a human embryo that eventually resulted in the birth of twin baby girls.
    • This was the first documented case of a ‘designer babies’ being produced using the new gene-editing tools like CRISPR.
    • What made matters worse was that the gene-editing was probably done without any regulatory permission or oversight.

  • Physics Nobel for discoveries about Black Holes

    Three scientists won this year’s Nobel Prize in Physics for advancing our understanding of black holes, the all-consuming monsters that lurk in the darkest parts of the universe.

    Try this PYQ:

    Q.Recently, scientists observed the merger of giant ‘blackholes’ billions of light-years away from the Earth. What is the significance of this observation?

    (a) ‘Higgs boson particles’ were detected.

    (b) ‘Gravitational waves’ were detected.

    (c) Possibility of inter-galactic space travel through ‘wormhole’ was confirmed.

    (d) It enabled the scientists to understand ‘singularity’.

    Who are these laureates?

    • Briton Roger Penrose received half of this year’s prize for the discovery that black hole formation is a robust prediction of the general theory of relativity.
    • German Reinhard Genzel and American Andrea Ghez received the second half of the prize for the discovery of a supermassive compact object at the centre of our galaxy.

    What are black holes?

    • A black hole is formed when stars collapse and can be defined as a space in the universe with an escape velocity so strong that even light cannot escape it.
    • Escape velocity is the speed at which an object must travel to override a planet or an object’s gravitational force.
    • For instance, for a spacecraft to leave the surface of the Earth, it needs to be travelling at a speed of about 40,000 km per hour.
    • Since light cannot get out, black holes are invisible and can only be tracked with the help of a space telescope or other special tools.
    • And the reason light cannot escape is mainly that the gravity inside a black hole is very strong as a result of a lot of matter being squeezed into a small space.

    Their contributions

    • Penrose has been awarded the prize for the discovery that black hole formation is a robust prediction of the general theory of relativity.
    • Genzel and Ghez have been awarded the prize for the discovery of a supermassive compact object at the centre of our galaxy.
    • Penrose’s work has shown that black holes are a direct consequence of Albert Einstein’s general theory of relativity.
    • Einstein himself did not believe that black holes exist and presented his theory in November 1915, providing a new way to look at and understand the gravity that shapes the universe “at the largest scale”.
    • Penrose used Einstein’s general theory of relativity in order to prove that the process of formation of black holes is a stable one.
    • Genzel and Ghez, on the other hand, have discovered that an invisible and an extremely heavy object governs the stars’ orbit at the centre of the Milky Way.

  • Supersonic Missile Assisted Release of Torpedo (SMART) System

    DRDO successfully conducted the flight test of its Supersonic Missile Assisted Release of Torpedo (SMART) system.

    Try this MCQ:

    Q.The SMART system recently tested by the DRDO is essentially a-

    a)Radar

    b)Torpedo

    c)UAV

    d)Missile

    What is the SMART system?

    • Torpedoes are self-propelled weapons that travel underwater to hit a target but are limited by their range.
    • In the mid-2010s, DRDO undertook a project to build capacity to launch torpedoes assisted by missiles; Monday’s was the first known flight test of the system.
    • This SMART system comprises a mechanism by which the torpedo is launched from a supersonic missile system with modifications that would take the torpedo to a far longer range than its own.
    • For example, a torpedo with a range of a few kilometres can be sent a distance to the tune of 1000 km by the missile system from where the torpedo is launched.

    Why is it significant?

    • SMART is a game-changing technology demonstration in anti-submarine warfare.
    • India’s anti-submarine warfare capacity building is crucial in light of China’s growing influence in the Indian Ocean region.
    • Assets of such warfare consist of the deployment of submarines, specialised anti-submarine ships, air assets and state-of-the-art reconnaissance and detection mechanisms.
    • The Navy’s anti-submarine warfare capability got a boost in June after the conclusion of a contract for Advanced Torpedo Decoy System Maareech, capable of being fired from all frontline warships.
    • India has been indigenously developing and building several anti-submarine systems and vessels in the recent past.