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?
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 isIncremental 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
A study highlights that endemic frog species, like the Nilphamari narrow-mouthed frog (Microhyla nilphamariensis), face challenges due to habitat loss and land use changes in agroforestry habitats like orchards and paddy fields.
About theNilphamari narrow-mouthed frog:
Details
About
A species of narrow-mouthed frog, characterized by a small size, narrow triangular mouth, and reduced webbing between toes.
It has light brown dorsal coloration with a dark brown diamond-shaped marking.
(Not listed by either IUCN or CITES.)
Geographical Location
Found in Bangladesh, India, Nepal, and northern Pakistan.
Habitat and Challenges
Prefers moist environments like grassy fields near ephemeral pools.
Faces challenges due to habitat loss and land use changes, particularly in agroforestry areas like orchards and paddy fields.
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.
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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.
The UNCCD, a treaty addressing desertification and drought, partnered with Germany’s Potsdam Institute for Climate Impact Research to release an analysis ahead of COP16’s launch in Riyadh, Saudi Arabia.
What is Land Degradation?
Land degradation is defined by the United Nations Convention to Combat Desertification (UNCCD) as the “reduction or loss of the biological or economic productivity and complexity of rainfed cropland, irrigated cropland, or range, pasture, forest and woodlands” due to various pressures, including land use and management practices. This phenomenon results in diminished soil quality and productivity, affecting both ecosystems and human livelihoods.
Why is it a Matter of Concern?
Land degradation poses significant risks to both humans and ecosystems:
Water Insecurity: Land degradation exacerbates water scarcity and reduces access to safe water, leading to a higher incidence of water- and food-borne diseases.
The World Health Organization (WHO) reports that unsafe drinking water and inadequate sanitation lead to approximately 829,000 deaths per year from diarrheal diseases alone.
Food Security: It reduces the quality and quantity of food production, increasing malnutrition risks.
Health Risks: Degraded lands contribute to the spread of water- and food-borne diseases due to poor hygiene and lack of clean water. Respiratory issues can arise from soil erosion and dust.
Environmental Impact: Eroded soil carries fertilizers and pesticides into water bodies, harming aquatic life and communities dependent on these resources.
Climate Change: Healthy soils act as carbon sinks. Degradation leads to the release of stored carbon and nitrous oxide, exacerbating global warming. The report indicates that land ecosystems’ capacity to absorb human-caused carbon dioxide has decreased by 20% over the last decade.
What is Causing Land Degradation?
Chemical Overuse: Excessive fertilisers and pesticides degrade soil; 50% of agricultural land suffers from nutrient depletion, salinisation, and waterlogging affecting 30% of irrigated lands globally.
Soil Erosion: Unsustainable farming practices lead to the loss of 24 billion tons of fertile soil annually, reducing crop yields by up to 50% in some regions.
Climate Change: Extreme weather events reduce global crop yields by 10%-50% by 2050; 12.6% of drylands were degraded between 1982-2015, affecting 213 million people.
Urbanization: Rapid urban growth of 1 million hectares per year destroys habitats, reduces farmland, and increases runoff, exacerbating soil erosion and biodiversity loss.
Deforestation and Overgrazing: 420 million hectares of forest lost since 1990; overgrazing degrades 34% of the global degraded area, weakening soil health and ecosystems.
Which Areas are the Worst Affected?
Dry Regions: Areas such as South Asia, northern China, California (USA), and the Mediterranean are particularly vulnerable.
Global Context: Approximately 15 million square kilometers of land are already degraded an area larger than Antarctica with an additional million square kilometers degrading each year. A third of humanity lives in drylands, which encompass three-quarters of Africa.
Way forward:
Sustainable Land Management Practices: Promote eco-friendly agricultural methods, reforestation, and efficient irrigation to restore soil health, combat erosion, and improve water retention in degraded lands.
Global Collaboration and Policy Implementation: Strengthen international frameworks like the UNCCD, allocate resources for affected regions, and adopt policies that integrate land restoration with climate resilience and biodiversity conservation.
Mains PYQ:
Q The process of desertification does not have climate boundaries. Justify with examples. (UPSC IAS/2020)
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 (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:
An outbreak of Marburg Virus (Bleeding Eyes) disease (MVD) has killed and infected many in Rwanda.
Location of Rwanda
AboutMarburg 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?
With global oil prices stabilizing and domestic fuel supply improving, the government has decided to scrap the windfall gains tax, ensuring more predictable taxation for the oil industry.
What isWindfall Tax?
A windfall tax is a levy imposed on companies experiencing unexpected profits due to external factors like market shifts or crises.
In India, it was introduced on July 1, 2022, targeting domestic crude oil production and exports of diesel, petrol, and ATF.
The tax aimed to capture windfall profits and ensure adequate domestic fuel supply amid rising global prices after Russia’s invasion of Ukraine.
The tax was imposed as Special Additional Excise Duty (SAED) on crude oil, and Additional Excise Duty (AED) or Road and Infrastructure Cess (RIC) on fuel exports.
Initially, the tax was Rs 23,250 per tonne on crude oil, Rs 13 per litre on diesel exports, and Rs 6 per litre on petrol and ATF exports.
The tax was regularly reviewed based on global oil price fluctuations.
A recent study published in the ‘Nature’ has shown that Extrachromosomal DNA(ecDNA)ispresent in approximately 50% of cancer types, playing a significant role in tumor evolution and genetic heterogeneity.
What is ecDNA?
Details
• ecDNA stands for extrachromosomal DNA, which is small, circular DNA found in the nucleus of cells, separate from regular chromosomes.
• Forms when DNA breaks off from chromosomes, often due to damage or errors in cell division.
• Can carry extra copies of oncogenes, which promote cancer growth.
• Initially thought to be unimportant, recent studies show it plays a major role in cancer.
How ecDNA Contributes to Cancer and Drug Resistance
• Helps Tumors Grow: ecDNA contains extra copies of oncogenes that help cancer cells grow faster and become more aggressive.
• Drug Resistance: The extra oncogenes make the cancer harder to treat with standard drugs by producing more harmful proteins.
• Faster Tumor Evolution: ecDNA allows cancer cells to evolve rapidly, making them more resistant to treatments like chemotherapy and enabling the tumor to grow even when drugs are used.
How ecDNA Challenges Genetics Laws?
Mendel’s Law says that genes on different chromosomes are inherited independently, meaning they are passed on randomly to the next generation.
ecDNA breaks this rule by grouping genes together and passing them on as a cluster during cell division.
This allows cancer cells to inherit beneficial genes more easily and helps the tumor grow faster.
Unlike regular chromosomes, which are distributed randomly during cell division, ecDNA is passed on together as a package.
This process gives cancer cells an advantage by making sure they inherit helpful genetic combinations that support cancer growth and resistance to drugs.
