A state-of-the-art SPACE testing and evaluation hub for sonar systems, designed for the Indian Navy, was inaugurated by DRDO.
About Submersible Platform for Acoustic Characterisation and Evaluation (SPACE)
The SPACE is located at the Underwater Acoustic Research Facility in Kulamavu, Idukki, Kerala.
It is developedby the Naval Physical & Oceanographic Laboratory of DRDO.
It is set to become a premier testing and evaluation hub for sonar systems deployed on various Indian Navy platforms, including ships, submarines, and helicopters.
Key Features of SPACE:
SPACE comprises two distinct components:
Floating Platform on the water surface and
Submersible platform capable of descending to depths of up to 100 meters using winch systems.
After completing operations, the submersible platform can be winched up and docked with the floating platform, ensuring efficient utilization of resources.
Functions and Capabilities:
The primary function of SPACE is the evaluation of complete sonar systems, facilitating rapid deployment and retrieval of scientific packages such as sensors and transducers.
It will serve for surveying, sampling, and data collection of air, surface, mid-water, and reservoir floor parameters utilizing modern scientific instrumentation.
It will address the data processing and sample analysis requirements, ushering in a new era of Anti-Submarine Warfare research capabilities.
What is SONAR?
SONAR stands for “Sound Navigation and Ranging.”
It’s a technique used for detecting and locating objects underwater by transmitting sound waves and analyzing the echoes they produce.
Here’s how it works:
Sound Transmission: A SONAR system sends out pulses of sound waves, typically at frequencies beyond the range of human hearing. These sound waves travel through the water and propagate in all directions.
Object Detection: When the sound waves encounter an object underwater, such as a submarine, seafloor, or marine life, they reflect off the object and return to the SONAR system as echoes.
Echo Reception: The SONAR system receives the echoes of the transmitted sound waves and measures the time it takes for them to return. By knowing the speed of sound in water and the time it takes for the echoes to return, the system can calculate the distance to the object.
Data Analysis: The received echoes are processed and analyzed to create a visual representation of the underwater environment. This information helps operators identify and locate objects of interest, navigate safely, and map the seafloor.
PYQ:
[2020] âThe experiment will employ a trio of spacecraft flying in formation in the shape of an equilateral triangle that has sides one million kilometres long, with lasers shining between the craft,â The experiment in question refers to-
India’s pulses imports in fiscal 2024 witnessed a remarkable surge, soaring by 84% year-on-year to their highest level in six years.
Lower production levels prompted India to permit duty-free imports of red lentils (Masoor) and yellow peas (Tur/Arhar), further driving the increase in imports.
Pulses Cultivation in India
Details
Seasons
Cultivated in both ‘Kharif’ and ‘Rabi’ seasons. ‘Rabi’ pulses contribute more than 60% of production.
Kharif Season Pulses:
Pigeon Peas (Arhar/Toor/Red Gram)
Green Beans (Moong Beans)
Black Matpe (Urad/Mah/Black Gram)
Black Eyed Peas (Lobia)
Chick Peas (Kabuli Chana)
Red Kidney Beans (Rajmash)
Rabi Season Pulses:
Bengal Gram (Desi Chick Pea/Desi Chana)
Lentils (Masoor)
White Peas (Matar)
Production (2023)Â
Approximately 27.5 million metric tonnes
Reported as 7.6 quintals per hectare
Area under Cultivation
Pulses account for around 20% of the area under food grains in India.
National Food Security Mission (NFSM) for Pulses, Pradhan Mantri Annadata Aay Sanrakshan Abhiyan (PM-AASHA) Scheme
Research and Development
Conducted by Indian Council of Agricultural Research (ICAR) in collaboration with State Agricultural Universities
Goal
Aim for self-sufficiency in pulse production by 2027
Pulses Import: Figures and Value
India imported a total of 4.65 million metric tons of pulses in the fiscal year ending March 31, 2024, marking the highest volume since fiscal 2018.
In terms of value, imports surged by 93% to reach $3.75 billion in the same period.
Pulses Production in India: Key Facts
India is the largest producer (25% of global production), consumer (27% of world consumption) and importer (14%) of pulses in the world (as per FAO).
Pulses account for around 20% of the area under foodgrains and contribute around 7-10% of the total foodgrains production in the country (as per Vikaspedia).
Gram (Chana) is the most dominant pulse having a share of around 40 per cent in the total production followed by Tur/Arhar at 15 to 20 per cent and Urad and Moong at around 8-10 per cent each. (Reference)
Madhya Pradesh, Maharashtra, Rajasthan, Uttar Pradesh and Karnataka are the top five pulses producing States. (Reference)
Global Impact of Higher Imports
The surge in imports by India, the world’s largest importer, producer, and consumer of protein-rich pulses, has been bolstering global prices.
It has also contributed to reducing stocks in exporting countries such as Canada, Australia, and Myanmar.
Significance of Pulses Consumption
Nutritional Value:
Pulses are considered to be âpoor manâs proteinâ.
They contain 20-25% of protein by weight, with twice the protein available in wheat and thrice that present in rice.
WHO recommends 80gm/day of Pulses in the diet.
Environmental Sustainability:
Pulses have low carbon and water footprints, making them integral to sustainable farming.
Water footprints for producing one kilogram of meat are five times higher than that of pulses.
Pulses emit 0.5 kilogram in CO2 equivalent per kilogram, while meat produces 9.5 kilograms in CO2 equivalent.
PYQ:
[2019] Among the agricultural commodities imported by India, which one of the following accounts for the highest imports in terms of value in the last five years ?
(a) Spices
(b) Fresh fruits
(c) Pulses
(d) Vegetable oils
[2020] With reference to pulse production in India, consider the following statements:
Black gram can be cultivated as both kharif and rabi crop.
Green-gram alone accounts for nearly half of pulse production.
In the last three decades, while the production of kharif pulses has increased, the production of rabi pulses has decreased.
Which of the statements given above is/are correct?
Mains PYQ Relevance:Â Q “The most significant achievement of modern law in India is the constitutionalization of environmental problems by the Supreme Court.” Discuss this statement with the help of relevant case laws. (UPSC IAS/2022) Q Does the right to a clean environment entail legal regulation on burning crackers during Diwali? Discuss in the light of Article 21 of the Indian Constitution and judgments of the apex in this regard. (UPSC IAS/2015)
Prelims:
With reference to Indiaâs Desert National Park, which of the following statements are correct? (UPSC CSE 2020) 1. It is spread over two districts. 2. There is no human habitation inside the Park. 3. It is one of the natural habitats of the Great Indian Bustard. Select the correct answer using the code given below: (a) 1 and 2 only (b) 2 and 3 only (c) 1 and 3 only (d) 1, 2 and 3
Note4Students:
Prelims: Recent Supreme Court judgments;
Mains: Environmental Governance;
Mentor comments: Mrs. Indira Gandhi once in herStockholm Conference speech which was derived from âAtharva Vedaâ to outline the need for maintaining Ecological Balance, concluded âWhat of thee I dig out, let that quickly grow over. Let me not hit thy vitals or thy heart. â On similar lines, the efforts made by the Supreme Court of India in the Constitutionalization of Environmental Problems can be very much attributed when it Constitutionalized the subject of Environmental Governance by adding Article 48(A) and 51-A (g) through the 42nd Constitutional Amendmentin 1976. Further, in the M C Mehta vs Union of India case (1985), the Supreme Court introduced the âDoctrine of Absolute Liabilityâ which undermines the hazardous industries liable for harming the ecological balance by their industrial activities. This time too (in April 2024), the Apex Court said the Rights to Life (Article 14) and Right to Equality (Article 21)cannot be fully realized without a clean, stable environment.
Letâs learn
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Why in the News?
In a recent judgment, the Supreme Court of India recognized the existence of a fundamental right to be free from the adverse impacts of climate change (hereinafter âthe rightâ). The judgment has garnered significant attention from environmentalists, mostly focusing only on its impacts on the protection of the Great Indian Bustard.
The Right
Great Indian Bustard Conservation vs. Renewable Energy Development: Rajasthan and Gujarat are home to the critically endangered Great Indian Bustard, but also have significant potential for solar and wind power. A public interest litigation sought conservation of the bustard and a ban on further construction of solar and wind energy infrastructure due to the hazard posed by power lines to the bustards.
Supreme Court’s Initial Order: The Supreme Court imposed a blanket ban on the laying of overhead power lines in a large area, including priority and potential bustard conservation areas. It also ordered the undergrounding of existing power lines.
Government’s Challenge the order: The government challenged the order citing international climate commitments, stating the ban covered a larger area than necessary and undergrounding power lines was impractical. It attributed the bustard decline to factors like poaching and habitat destruction.
Supreme Court’s Modification: The Court modified the initial order, recalling the blanket prohibition on transmission lines and tasked a committee to assess the feasibility of undergrounding power lines and identifying conservation measures. The committee’s report is expected by July 2024.
Recognition of Right Against Climate Change: The Supreme Court recognized a right against the adverse impacts of climate change, rooted in Articles 14 (right to equality) and 21 (right to life) of the Indian Constitution, along with India’s climate change actions and scientific consensus.
Non-binding Recognition: The Court’s recognition of the right isn’t in the operative part of the judgment, hence not binding. Its influence on future climate action remains to be seen.
Just transition framework
Transition Framework: Conservationist Debadityo Sinha suggests adopting the just transition framework, aiming to make transitions to a low carbon economy more equitable and inclusive. This approach considers the interests of workers, vulnerable communities, and small and medium-sized enterprises affected by slow carbon transition projects like solar energy.
Advantages of the Just Transition Framework:
Precludes adversarial choices: It avoids pitting climate action against biodiversity protection, advocating for inclusive climate action sensitive to varied rights and interests.
Expanding the concept to include non-human interests.: If used in the final decision, this case could become a frontrunner in just transition litigation, contributing to expanding the concept to include non-human interests.
A âshared burdenâ
Shared Responsibility: The burden of articulating and enforcing the right falls not only on the state but also on activists, litigants, and academics. They contribute to the process of recognition, articulation, and enforcement of rights, indirectly or directly.
Inclusivity and Effectiveness: The focus is on making the right against climate change inclusive and effective, ensuring that it considers diverse perspectives and addresses the needs of all stakeholders, including marginalized communities and non-human interests.
Importance of Participation: Active participation from various stakeholders is crucial in shaping the content and implementation of the right against climate change, fostering collaboration between the judiciary, state, activists, litigants, and academics.
Conclusion
The Supreme Court’s recognition of a right against climate change underscores the need for inclusive climate action. Embracing the just transition framework and fostering shared responsibility and participation are crucial for effective implementation.
BACK2BASICS: About Great Indian Bustard (GIB):
The GIB is the State bird of Rajasthan. It is also considered Indiaâs most critically endangered bird and is protected under the Wildlife Protection Act. Its population of about 150 in Rajasthan accounts for 95% of its total world population. However, GIBs have been facing a threat to their survival because of intensive agricultural practices, the laying of power lines, and industrialization.
Come summer, we are used to seeing heat alerts from the India Meteorological Department (IMD) for various parts of India. This year, these alerts began in February itself.
What is a heatwave?
According to the IMD, the definition of a heatwave depends on the physiography of regions.
The IMD will declare a heatwave if the maximum temperature recorded at a station is 40 degrees Celsius or more in the plains, 37 degrees Celsius or more in the coast, and 30 degrees Celsius or more in the hills.
Heat Action Plans (HAPs) to tackle heatwaveÂ
Aim: HAPs aim to increase preparedness and lower the adverse impacts of extreme heat by outlining strategies and measures to prepare for, address, and recover from heat waves.
The National Disaster Management Authority and IMD are reported to be working with 23 States to develop HAPs.
Issue with Database: There is no centralized database on HAPs, but at least 23 HAPs exist at the State and city level, with a few States, such as Odisha and Maharashtra, laying out district-level HAPs.
Key components of Heat Action Plans (HAPs)Â Â
LimitationÂ
Challenges related to Determining Heatwaves: While a national threshold is currently used to determine heatwaves, determining them at smaller scales such as states, districts, and cities poses a challenge due to variations in local factors like the urban heat island effect, type of roofing, and proximity to water or green bodies, as well as humidity.
Inconsistent Methods and Vulnerability Assessments: The methods used for vulnerability assessments in HAPs are inconsistent because of the diverse physiography of regions
Addressing Vulnerable Populations: While HAPs prioritize protecting vulnerable populations, targeted interventions often fail to account for varying needs based on local socio-economic and demographic factors.
Resource Allocation and Financing: Implementation of HAPs varies depending on local government priorities and available capacities because at the local level Fund crunch.
Integration and Collaboration: HAPs are currently standalone plans with limited finance, highlighting the need for integration with broader action plans promoting urban resilience and climate adaptation to pool resources effectively.
Way Forward:
Determination at Local Scales: Invest in local monitoring systems that capture variations in temperature, humidity, and other relevant factors.
Standardizing Methods: Establish guidelines for conducting vulnerability assessments that account for diverse physiography and local context.
Tailoring Interventions: Conduct comprehensive community consultations to understand the unique needs of vulnerable populations in different localities.
Funding and Resources: Advocate for increased funding for HAPs at the national and local levels through budget allocations, grants, and public-private partnerships.
Integration and Collaboration: Establish inter-agency task forces or committees to coordinate HAPs with other relevant initiatives, such as urban planning, public health, and disaster management.
Mains PYQÂ
Q Climate change’ is a global problem. How India will be affected by climate change? How Himalayan and coastal states of India will be affected by climate change? (UPSC IAS/2017)
On 12 March 2024, in a first for Uttar Pradesh, a trial court in Hapur awarded life imprisonment in a case of cow protection-related lynching of a Muslim person.
Six years earlier, in June 2018, Qasim Qureshi was lynched to death, and Samiuddin was brutally assaulted, by a Hindu group in the Bajhera Khurd village, under the false accusation of cow slaughter.
Mob lynching is an act of premeditated extrajudicial killing by a group of people, often targeted against a particular individual or group. Mob lynching is based on some false information, unconfirmed rumours etc.
Key issues in the investigation as per judgment:Â
Police Fabrication and Accountability: The court censures the police for fabricating the FIR, creating an alternative narrative of the incident, and failing to collect witness statements and conduct proper investigations. This raises questions about police accountability and their collusion with the accused.
Intent and Collusion: The judgment questions the police’s intent and alleges collusion of police personnel and investigating officers in protecting the accused. There are allegations of damaging video evidence and neglecting forensic investigations, highlighting potential corruption or bias within the police force.
Failure in Investigation: Despite eyewitnesses approaching officers, the police did not conduct an official identification parade, which aided the accused in securing bail. This failure indicates potential attempts by the police to misdirect the investigation.
State’s Role and Vigilante Violence: The conviction highlights the state’s role as not only a participant but also an enabler in the violence. It demonstrates how the state delegates illegal policing to vigilantes, with convictions having little material impact on the state’s involvement.
Way forwardÂ
Need Accountability: Implement strict protocols for filing FIRs and conducting investigations to prevent fabrication of evidence.
Need for Fast-track courts: The lynching cases should be tried by fast-track courts with day-to-day hearings. It is important to punish the culprit with stringent punishment and conclusion of the cases within 6 months.
Enhancing Investigation: Mandate the conduct of official identification parades in all cases involving serious crimes to facilitate accurate witness identification.
Addressing State Complicity: Strengthen legal frameworks to hold state authorities accountable for their role in enabling or condoning vigilante violence.
The Union Environment Ministry has rolled out norms for the Green Credit Programme (GCP).
Guidelines and Modifications:
The Environment Ministry’s recent guidelines empower âStatesâ to determine afforestation density based on local conditions, acknowledging the variability in forest ecosystems.
Indigenous species are prioritized, and naturally occurring seedlings are retained to foster ecosystem resilience.
What is Green Credit Programme (GCP)?
The GCP as notified on October 13, 2023 by the government of India, is an innovative market-based mechanism.
It involves various stakeholders like- individuals, farmers, communities, private sector industries, and companies.
The Indian Council of Forestry Research and Education (ICFRE), based in Dehradun, serves as the GCP Administrator, responsible for programme implementation, management, monitoring, and operation.
Initially, the GCP focuses on water conservation and afforestation.
What are Green Credits?
The green credit rules notified under the Environment (Protection) Act 1986 defines âgreen creditâ as a single unit of an incentive provided for a specific activity that delivers a positive impact on the environment.
Each tree planted and evaluated by the ICFRE after two years could yield one ‘green credit,’ which can be utilized in two ways:
Compliance with forest laws necessitating recompense for forest land diversion.
The ICFRE, alongside experts, is developing the Green Credit Registry and trading platforms to facilitate the registration, buying, and selling of green credits.
To obtain green credits, individuals and entities must register their activities through the central governmentâs dedicated app/website (www.moefcc-gcp.in).
The administrator verifies activities through a designated agency, with self-verification for small projects. Once verified, the administrator issues a tradeable green credit certificate.
Activities under GCP
The GCP includes numerous activities, such as:
Description
Tree Plantation-based Green Credit
Promotes increasing the green cover through tree plantations and related activities.
Water-based Green Credit
Promotes water conservation, harvesting, and efficiency, including wastewater treatment and reuse.
Sustainable Agriculture-based Green Credit
Promotes natural and regenerative agricultural practices, land restoration, and soil health improvement.
Waste Management-based Green Credit
Promotes sustainable waste management practices, including collection, segregation, and treatment.
Air Pollution Reduction-based Green Credit
Promotes measures to reduce air pollution and other pollution abatement activities.
Mangrove Conservation and Restoration-based Green Credit
Promotes conservation and restoration of mangroves, critical ecosystems for coastal protection and biodiversity.
Ecomark-based Green Credit
Encourages manufacturers to obtain Ecomark labels for their goods and services, signifying environmental sustainability.
Sustainable Building and Infrastructure-based Green Credit
Promotes sustainable practices in building and infrastructure development, including energy efficiency, renewable energy use, and eco-friendly construction materials.
Future prospects
The programme is currently in a pilot phase, with ongoing deliberations on:
Quantifying the contributions of shrubs and grasses to green credits;
Equivalence between green and carbon credits;
Allocation of credits for compensatory afforestation.
PYQ:
[2011] Regarding âcarbon creditsâ, which one of the following statements is not correct?
(a) The carbon credit system was ratified in conjunction with the Kyoto Protocol
(b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota
(c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission
(d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme.
Chennaiâs main drinking water source Veeranam Lake dries up.
Its supply was halted due to the lack of inflow from the Mettur dam located across the Kaveri River.
About Veeranam Lake
Veeranarayanapuram Lake, commonly known as Veeranam Lake, serves as a crucial water source for Chennai city.
It is a manmade lake with 16-km long dam. It was about 20 km long and 7 km wide back then in 10th century.
It situated approximately 235 km away in the Cuddalore district of Tamil Nadu.
The lake, located near Kattumannarkoil, has a storage capacity of around 1,465 million cubic feet (mcft) and plays a vital role in supplying water to Chennai.
Historical Significance of Veeranam Lake
Constructed during the 10th century by Rajaditya Chola, a ruler of the Greater Cholas.
It was originally named as Veeranarayana Mangalam Lake,
It was built with the efforts of Rajaditya Chola and his soldiers during their leisure time while camped at Thirumunaipadi for a war against Pallava kings.
Water Sources and Inflow
Veeranam Lake primarily receives water from the Kollidam River via the Vadavaru River.
The lake’s inflow is supplemented by water released from the Mettur dam through the Kollidam River and Lower Anicut, ensuring sufficient water availability during certain periods.
PYQ:
[2018] Which one of the following is an artificial lake?
The Forest Department has resumed Operation Jumbo to capture trouble-causing wild elephants and fix radio collars in Hassan division of Karnataka.
What is Operation Jumbo?
Operation Jumbo is a campaign launched by the Karnataka government to capture and radio-collar rogue wild elephants that frequently enter human habitations.
It is effective in five districts of the state, namely Hassan, Chikkamagaluru, Kodagu, Ramanagara, and Bengaluru.Â
The objective of this operation is to manage elephant movement and mitigate conflicts through continuous tracking using GPS-equipped radio collars, which have a battery life of three years.
Implementation ofOperation Jumbo
The cost of capturing and radio-collaring each wild elephant is approximately Rs 22 lakh, with Rs 7 lakh spent on each radio collar imported from South Africa.
The operation involves a diverse team of 70-80 individuals, including forest officers, veterinarians, mahouts, and other support staff.
It includes tasks such as surveillance, tracking, darting wild animals from the back of trained elephants, and securing the rescued tusker.
Elephants in India
Details
Population Estimate
India hosts the largest population of wild Asian Elephants (Elephas maximus), with around 29,964 individuals,
Approximately 60% of the global population (2017 census).
Leading States
Karnataka holds the highest number of elephants, followed by Assam and Kerala.
Conservation Status
IUCN Red List:Â Endangered.
CMS: Appendix I.
Wildlife (Protection) Act, 1972: Listed under Schedule I,
CITES: Appendix I.
Conservation Initiatives
Project Elephant launched in 1992, covering 23 states across India.
Contributed to the increase in wild elephant population from around 25,000 in 1992 to about 30,000 in 2021.
Establishment of Elephant Reserves. Total 33 in numbers covering approximately 80,777 Sq.km.
PYQ:
[2020] With reference to Indian elephants, consider the following statements:
The leader of an elephant group is a female.
The maximum gestation period can be 22 months.
An elephant can normally go on calving till the age of 40 years only.
Among the States in India, the highest elephant population is in Kerala.
Which of the statements given above is/are correct?
Kavach, an automatic train protection (ATP) system, was initially named Train Collision Avoidance System (TCAS).
Development commenced in 2011 as Indian Railways and Research Designs & Standards Organisation (RDSO) sought a domestically developed ATP system.
B. Rajaram, credited with developing the Skybus Metro system, played a key role in Kavach’s development.
Field trials began in 2014, refining the system’s specification.
Final approval was granted in 2019, certifying Kavach for compliance with Safety Integrity level 4 (SIL-4) operations.
Working Mechanism:
Kavach comprises trackside Radio Frequency Identification (RFID) tags, onboard locomotive equipment, and radio infrastructure.
It communicates via radio, enabling real-time train monitoring.
Drivers receive alerts, and automatic braking is triggered to prevent collisions.
Kavach uses various data inputs like location, direction, and time to ensure safety.
Event recorders retain records of interactions and incidents for analysis.
Alerts and automatic braking ensure an immediate response to hazardous situations.
How does it help prevent collision?
Kavach is designed to alert the locomotive pilot if they fail to notice a âred signalâ and continue at a speed that would surpass the signal.
If the pilot does not slow down below 15 kmph, Kavach automatically applies the brakes, bringing the train to a halt.
Issues with KAVACH
High Deployment Cost: Implementing Kavach costs âč50 lakh per kilometer for the Indian Railways.
Low Coverage: Currently, Kavach covers only 1,500 kilometers of rail routes, a small fraction of the total 68,000-kilometer network (as of November 2023).
Expanding its coverage, particularly on high-density routes, remains a formidable challenge.
PYQ:
[2015] With reference to bio-toilets used by the Indian Railways, consider the following statements:
The decomposition of human waste in the biotoilets is initiated by a fungal inoculum.
Ammonia and water vapour are the only end products in this decomposition which are released into the atmosphere.
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
India has simplified the payment mechanism for traders importing pulsesfrom Myanmar, requiring them to use the Rupee/Kyat direct payment system through the Special Rupee Vostro Account (SRVA) through the Punjab National Bank.
International Transactions Settlement Mechanism:
[1] Vostro Accounts:
Named from the Latin word “vostro,” meaning “yours.”
Represents a domestic bank’s account held by a foreign bank in the local currency (e.g., INR in India).
Allows foreign banks to manage local currency transactions on behalf of their clients.
For example, a foreign bank holding an account in an Indian bank in Indian Rupees (INR) for facilitating transactions within India.
[2] Nostro Accounts:
Derived from the Latin word “nostro,” meaning “ours.”
Refers to a foreign bank’s account held by a domestic bank in the foreign currency (e.g., USD in the United States).
Enables domestic banks to handle foreign currency transactions for their clients.
For instance, an Indian bank holding an account in a U.S. bank in U.S. Dollars (USD) to facilitate international transactions in the U.S. currency.
[3] Loro Accounts:
From the Italian word “loro,” meaning “their.”
Represents an account held by one foreign bank in another foreign bank’s currency.
Facilitates interbank transactions between two foreign banks without converting currencies into a domestic currency.
For example, if a bank in India holds an account in a bank in the United States in USD (U.S. Dollars) to facilitate transactions between those two banks.
What is Special Rupee Vostro Account (SRVA)?
Information
Definition
Domestic banks hold INR accounts for foreign banks, promoting direct trade in rupees.
Reduces reliance on foreign currencies, mitigating economic shocks.
Aims to elevate INR’s global status and facilitates trade with sanctioned countries.
Framework Components
All exports and imports invoiced in INR.
Exchange Rate is Market-determined.
Final trade settlements takes place in INR.
Functioning
Indian banks open SRVA accounts for foreign banks.
INR used for import payments and export receipts.
Compliance
Enables advance payments for Indian exporters, complying with Foreign Exchange Management Act (FEMA), 1999.
Correspondent bank should not from a country mentioned in the updated Financial Action Task Force (FATF) Public Statement on High Risk & Non-Co-operative jurisdictions
Purpose of the Arrangement
Reduces demand for foreign currencies, increasing INR use in trade.
Mitigates economic shocks by minimizing reliance on foreign exchange.
Aims to boost INR’s global acceptance and facilitates trade with sanctioned nations.
How are the SRVA different from the already existing Rupee Vostro Account?
The settlement of International trade through Indian Rupees (INR) is an additional arrangement to the existing system of settlement.
