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GS Paper: GS3

  • Underwater combat drones: Indian Navy’s readiness

    combat

    Context

    • India is on a drive to induct unmanned combat systems into the military. Months after the Indian Army announced the induction of swarm drones into its mechanized forces, the Navy chief, Admiral R Hari Kumar, reiterated the importance of autonomous systems in creating a future-proof Indian Navy (IN).

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    combat

    Indian Navy’s expanding surveillance and reasons for doing so

    • The IN, indeed, has been on a mission to expand surveillance in India’s near-seas: Two years after it leased MQ-9B Sea Guardian drones from the US, the navy, in July 2022, released an unclassified version of its unmanned roadmap for the induction of remote autonomous platforms including undersea vehicles.
    • Maritime deterrence in the Eastern Indian Ocean: A key driver for the enterprise is underwater domain awareness, deemed an increasingly vital component of maritime deterrence in the Eastern Indian Ocean.
    • Chinas undersea presence in the Indian ocean: In the aftermath of the conflict in Ladakh in June 2020, there is a growing sense among Indian experts and military planners that China’s undersea presence in the Indian Ocean is on the cusp of crossing a critical threshold.
    • Recent reports of sighting of Chinese drones in the waters of Indonesia: Recent reports of the sighting of Chinese drones in the waters off Indonesian islands suggest the Peoples Liberation Army Navy has been studying the operating environment of the Indian Ocean.
    • China already deployed vessels around Andaman in the name of research: Already, there has been a rise in the deployment of Chinese research and survey vessels in the waters around India’s Andaman and Nicobar Islands.
    • Recognizing the threat, Indian Navy sought acquire to own AUV: Ever more alive to the dangers posed by foreign undersea presence in Indian waters, the IN sought to acquire its own autonomous underwater vehicles (AUVs) with twin surveillance and strike capabilities.

    Analysis: The navy’s interest in armed underwater drones

    • Underwater vehicles never viewed as warfighting assets: Despite being widely used in underwater search and exploration, underwater vehicles have never quite been viewed as warfighting assets by India’s military establishment.
    • Never sought deploying underwater drones in combat roles: Notwithstanding the AUVs’ utility in tasks such as mine detection and ship survey, India’s naval planners have traditionally desisted from deploying undersea drones in a combat role.
    • Acknowledging war fighting capabilities and need of the hour: Indian analysts and decision-makers seem to be belatedly acknowledging the warfighting abilities of underwater autonomous platforms powered by artificial intelligence (AI).
    • Getting ready for the new era warfare: With the fourth industrial revolution (4IR) shaping a new era in warfare, Indian observers are beginning to recognise the likely impact of disruptive technologies on the maritime domain. AI powered by deep learning, data analytics, and cloud computing, many say, is poised to alter the maritime battlefront, potentially triggering a revolution in naval affairs in India.

    Challenges to harness the disruptive technologies in maritime combat

    • Ethical paradox: There is an ethical paradox that typifies artificially intelligent combat systems.
    • Imported AI tech algorithms cannot be under user control: Despite rendering warfare more deadly, AI compromises the control, safety, and accountability of weapon systems it also enhances the risk of shared liability between networked systems, particularly when weapon algorithms are sourced from abroad, and when the satellite and link systems that enable combat solutions are not under the control of the user.
    • Predisposition of data in AI can undermine the decision making: AI is characterised by a predisposition to certain kinds of data. Biases in the collection of data, in the set of instructions for data analysis, and in the selection of probabilistic outcomes muddle rational decision-making, undermining confidence in automated combat solutions.
    • The doctrinal paradox is equally troubling: There is no easy way of incorporating AI-fuelled warfighting approaches into doctrine, particularly when many technologies are in a nascent stage of development, and there is little clarity about how effective AI could be in combat.
    • Capacity limitation that restricts the development of AI: While technology absorption in the navy has matured in certain areas over a period of time, a large gap still exists in the development of critical technologies, which are system engineering, airborne and underwater sensors, weapon systems, and hi-tech components.

    The critics of AI in warfare

    • Technology without comprehensive testing is risky: That fielding nascent technologies without comprehensive testing puts both military personnel and civilians at risk.
    • Probabilistic assessment by computers not always provide optimal solution: A system of targeting human beings based on probabilistic assessments by computers that act merely on machine-learned experiences, is problematic because the computer neither has access to all relevant data to make an informed decision nor recognizes that it needs more information to come up with an optimal solution.
    • Shaping policy to account for AI is challenging: That is because military doctrine is premised on a traditional understanding of conflict. If war is a normative construct, then there are rules and codes to be followed, and ethical standards to be met.
    • AI could be inconsistent with the laws of war: What is more, AI seemingly automates weapon systems in ways that are inconsistent with the laws of war.

    combat

    Legality issues of underwater combat drones

    • Status by UNCLOS is not yet clear: It is not yet clear if unmanned maritime systems enjoy the status of ships under the UN convention of the laws of the sea; even if they do, it is unlikely that they can be classified as warships.

    Way ahead

    • Notwithstanding the announcement of multiple AI projects, the navy remains focused on using AI in noncombat activities such as training, logistics, inventory management, maritime domain awareness, and predictive maintenance.
    • India’s maritime managers recognize that the IN is still at a place on its evolutionary curve where incorporating AI in combat systems could prove risky. An incremental approach, many believe, is the best way forward.

    Conclusion

    • It is worth acknowledging that AI in warfare is not just a matter of combat effectiveness but also of warfighting ethics. AI-infused unmanned systems on the maritime battlefront pose a degree of danger, making it incumbent upon the military to deploy its assets in ways that are consistent with national and international law. India’s naval leadership would do well if it takes careful and calculated steps in developing AI-powered underwater systems.

  • Green Hydrogen Mission: India in the right bus in the right direction

    Mission

    Context

    • As countries work on reducing their dependence on fossil fuels due to climate change considerations, a race is currently on to secure the energy sources of the future. Green hydrogen, produced through a clean process, is rightly seen as the most dependable source of energy of the future.

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    Mission

    Highlights: India’s efforts towards clean energy transition and the challenges

    • Seasonality challenge for solar and Wind energy: Solar and wind energy have almost been tamed, but their intermittency and seasonality continue to be a challenge.
    • High cost of nuclear energy: The Nuclear energy has been in use for several decades now, but its cost remains a constraint.
    • Electric vehicles are still not convenient: Even though electric vehicles are fast gaining in popularity, the convenience of petrol or diesel is still missing.
    • The government approval to the National Green Hydrogen Mission: recently government approved National green hydrogen Mission a keenly-awaited decision. The nearly Rs 20,000 crore mission is aimed at building domestic capabilities in developing technologies to produce hydrogen, an element that is readily available in nature but never alone, because of which it requires segregation.

    What is Green Hydrogen?

    • Clean and no harmful gas emission: The Green hydrogen is the one produced with no harmful greenhouse gas emissions.
    • Produced by electrolysis of water: It is made by using clean electricity from surplus renewable energy sources, such as solar or wind power, to electrolyse water. Electrolysers use an electrochemical reaction to split water into its components of hydrogen and oxygen, emitting zero-carbon dioxide in the process.
    • Energy intensive process: It is an energy-intensive process for splitting water into hydrogen and oxygen using renewable power to achieve this.

    Analysis: Green Hydrogen most dependable source of energy of the future

    • Energy of the future: The Green hydrogen, produced through a clean process, is rightly seen as the most dependable source of energy of the future.
    • Fuel for vehicles or to generate electricity: It can be used to generate electricity or as fuel in industries or vehicles.
    • Not yet cost effective: Even though the technology to produce hydrogen in an emission-free manner is not yet mature or cost-effective, it features prominently in several countries’ strategies to achieve net-zero emission status by the middle of this century.
    • Production is expensive: The green hydrogen currently makes up a small percentage of the overall hydrogen, because production is expensive. The current cost of green hydrogen in India is ₹300 to ₹400 per kg.

    Mission

    Late entry in Solar energy: a lesson to be remembered

    • Green hydrogen is still in a nascent stage: Efforts to harness the energy of hydrogen in a clean and affordable manner have been stepped up significantly in the last few years. In many ways, green hydrogen is where solar energy was 10-12 years ago.
    • Technology was available but not economical: The technology to harness the energy was available, but wasn’t economical. Then, dramatically, in a period of less than five years, a combination of technology improvement and massive demand in countries like China saw the prices of solar photovoltaic cells come down by 80-90 per cent, suddenly making solar energy an extremely attractive proposition.
    • India’s entry in solar revolution was a little late: India joined the solar revolution a little late, after the prices had come down. And while India is now one of the biggest players in solar energy, most of the raw materials and components are imported.
    • The big concern: There are already concerns that inability to develop domestic capabilities in solar manufacturing will only result in India moving from one kind of dependency oil imports to another.

    Mission

    National hydrogen mission: India’s efforts in right direction

    • Early entry in Hydrogen energy: With the hydrogen mission, India is making a relatively early entry into a still nascent technology domain.
    • Emphasis on developing domestic manufacturing capabilities: It is reassuring to see that the bulk of the financial allocation for the mission is geared towards developing domestic manufacturing of electrolysers, the equipment in which hydrogen is separated from water molecules, and the production of hydrogen.
    • Allocation of funds for R&D, a move in right direction: A substantial part of the money has been earmarked for R&D activities with the aim of developing globally competitive technologies.

    Conclusion

    • With the much-needed hydrogen mission, India is making a relatively early entry into a still nascent technology domain. It is important not to miss the bus like the solar revolution this time. For now, the government seems to be moving in the right direction.

  • AI generative models and the question of Ethics

    AI

    Context

    • 2022 had an unusual blue-ribbon winner for emerging digital artists; Jason Allen’s winning work Théâtre D’opéra Spatial was created with an AI Generative model called Midjourney.

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    What is Midjourney?

    • Midjourney is an AI based art generator that has been created to explore new mediums of thought.
    • It is an interactive bot, which uses machine learning (ML) to create images based on texts. This AI system utilises the concepts and tries to convert them into visual reality.
    • It is quite similar to other technologies such as DALL-E 2.

    AI

    The journey of AI generative models so far

    • Midjourney generator: Midjourney is one of the rash of AI-generated Transformer or Generative or Large Language Models (LLMs) which have exploded onto our world in the last few years.
    • Earlier models: Models like BERT and Megatron (2019) were relatively small models, with up to 174 GB of dataset size, and passed under the collective public radar.
    • Composition skills of GPT3: GPT3, released by OpenAI with a 570 GB dataset and 175bn parameters was the first one to capture the public consciousness with some amazing writing and composition skills.
    • Models that creat images or videos based on texts: The real magic, however, started with Transformers which could create beautiful and realistic pieces of art with just a text prompt OpenAI’s DALL-E2, Google’s Imagen, the open-source Stable Diffusion and, obviously, Midjourney. Not to be left behind, Meta unleashed a transformer which could create videos from text prompts.
    • ChatGPT, a latest and more evolved, like real communication: Recently in late 2022 came the transformer to rule them all ChatGPT built on GPT3, but with capabilities to have real conversations with human beings.

    AI

    Are these models ethical?

    • Ethics is too complex a subject to address in one short article. There are three big ethical questions on these models that humanity will have to address in short order.
    1. Environmental: Most of the bad rap goes to crypto and blockchain, but the cloud and these AI models running on it take enormous amounts of energy. Training a large transformer model just once would have CO2 emissions equivalent to 125 roundtrips from New York to Beijing. This cloud is the hundreds of data centres that dot our planet, and they guzzle water and power at alarming rates.
    2. Bias; as it do not understand meaning and its implications: The other thorny ethical issue is that sheer size does not guarantee diversity. Timnit Gebru was with Google when she co-wrote a seminal research paper calling these LLMs ‘stochastic parrots’, because, like parrots, they just repeated a senseless litany of words without understanding their meaning and implications.
    3. Plagiarism, question of who owns the original content: The third prickly ethical issue, which also prompted the artist backlash to Allen’s award-winning work is that of plagiarism. If Stable Diffusion or DALL-E 2 did all the work of scouring the web and combining multiple images (a Pablo Picasso Mona Lisa, for example), who owns it. Currently, OpenAI has ownership of all images created with DALL-E, and their business model is to allow paid users to have rights to reproduce, paint, sell and merchandise images they create. This is a legal minefield the US Copyrights office recently refused to grant a copyright to a piece created by a generative AI called Creativity Machine, but South Africa and Australia have recently announced that AI can be considered an inventor.

    AI

    Do you know ChatGPT?

    • ChatGPT is a chatbot built on a large-scale transformer-based language model that is trained on a diverse dataset of text and is capable of generating human-like responses to prompts.
    • A conversation with ChatGPT is like talking to a computer, a smart one, which appears to have some semblance of human-like intelligence.

    What are the other concerns?

    • Besides the legal quagmire, there is a bigger fear: This kind of cheap, mass-produced art could put artists, photographers, and graphic designers out of their jobs.
    • Machine does not have human like sense: A machine is not necessarily creating art, it is crunching and manipulating data and it has no idea or sense of what and why it is doing so.
    • As it is cheap, corporate might consider using it at a large scale: But it can do so cheaply, and at scale. Corporate customers might seriously consider it for their creative, advertising, and other needs.

    Conclusion

    • Legal and political leaders across the world are sounding the alarm about the ethics of large generative models, and for good reason. As these models become increasingly powerful in the hands of Big Tech, with their unlimited budgets, brains and computing power, these issues of bias, environmental damage and plagiarism will become even more fraught. Such AI models should not be used to create chaos rather a harmonious existence.

    Mains question

    Q. Name some of the models of AI based art generators. Discuss the ethical concerns of such models.

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  • Centre clears National Green Hydrogen Mission

    hydrogen

    The Union Cabinet approved the National Green Hydrogen Mission, which is aimed at making India the global hub for the production of green hydrogen.

    What is Green Hydrogen?

    • Green hydrogen is hydrogen gas produced through the electrolysis of water.
    • It is an energy-intensive process for splitting water into hydrogen and oxygen— using renewable power to achieve this.
    • The current cost of green hydrogen in India is ₹300 to ₹400 per kg.

    Green Hydrogen Mission

    • The National Hydrogen Mission was launched on August 15, 2021, with a view to cutting down carbon emissions and increasing the use of renewable sources of energy.
    • The Ministry of New and Renewable Energy (MNRE) will formulate the scheme guidelines for implementation.

    Key features

    • Power capacity: The mission seeks to promote the development of green hydrogen production capacity of at least 5 MMT per annum with an associated renewable energy capacity addition of about 125 GW in the country by 2030.
    • Job creation: It envisages an investment of over ₹8 lakh crore and creation of over 6 lakh jobs by 2030.
    • Reducing energy import bill: It will also result in a cumulative reduction in fossil fuel imports of over ₹1 lakh crore and abatement of nearly 50 MMT of annual greenhouse gas emissions by 2030.
    • Export promotion: The mission will facilitate demand creation, production, utilisation and export of green hydrogen.
    • Incentivization: Under the Strategic Interventions for Green Hydrogen Transition Programme (SIGHT), two distinct financial incentive mechanisms targeting domestic manufacturing of electrolysers and production of green hydrogen will be provided under the mission.
    • Green Hydrogen Hubs: Regions capable of supporting large-scale production and/or utilisation of hydrogen will be identified and developed as Green Hydrogen Hubs.

    Hydrogen Energy: A Backgrounder

    • Hydrogen is an important source of energy since it has zero carbon content and is a non-polluting source of energy in contrast to hydrocarbons that have net carbon content in the range of 75–85 per cent.
    • Hydrogen energy is expected to reduce carbon emissions that are set to jump by 1.5 billion tons in 2021.
    • It has the highest energy content by weight and lowest energy content by volume.
    • As per International Renewable Energy Agency (IRENA), Hydrogen shall make up 6 per cent of total energy consumption by 2050.
    • Hydrogen energy is currently at a nascent stage of development, but has considerable potential for aiding the process of energy transition from hydrocarbons to renewable.

    Why hydrogen?

    • Better properties: At standard temperature and pressure, hydrogen is a nontoxic, nonmetallic, odourless, tasteless, colourless, and highly combustible diatomic gas.
    • Clean fuel: Hydrogen fuel is a zero-emission fuel when burned with oxygen. It can be used in fuel cells or internal combustion engines. It is also used as a fuel for spacecraft propulsion.
    • Ample sources: Hydrogen can be sourced from natural gas, nuclear power, biomass, and renewable power like solar and wind.
    • Phasing out carbon: India remains committed to environmental and climate causes with a massive thrust on deploying renewable energy and energy efficiency measures.
    • Diversification of our energy basket: This would be the key lever enabling this transition. That’s why the emergence of hydrogen at the centre stage is a welcome development.

    How Hydrogen can be produced?

    Commercially viable Hydrogen can be produced from –

    1. Hydrocarbons including natural gas, oil and coal through processes like steam methane reforming, partial oxidation and coal gasification
    2. Renewables like water, sunlight and wind through electrolysis and photolysis and other thermo-chemical processes.

    How is Green Hydrogen produced?

    • For source material, green hydrogen today is typically generated from water through a process known as electrolysis, which uses an electric current to split water into its component molecules of hydrogen and oxygen.
    • This is done using a device called an electrolyzer,  which utilizes a cathode and an anode (positively and negatively charged electrodes).
    • This process produces only oxygen – or steam – as a by-product.
    • As for energy supply, to qualify as “green hydrogen,” the source of electricity used for electrolysis must derive from renewable power, such as wind or solar energy.
    • Currently the production of green hydrogen is two or three times more expensive than blue hydrogen.

    How can green hydrogen be used?

    Hydrogen can be used in broadly two ways. It can be burnt to produce heat or fed into a fuel cell to make electricity.

    • Fuel-cell  Mobility: Hydrogen electric cars and trucks
    • Container ships powered by liquid ammonia made from hydrogen
    • “Green steel” refineries burning hydrogen as a heat source rather than coal
    • Hydrogen-powered electricity turbines that can generate electricity at times of peak demand to help firm the electricity grid

    Challenges in producing Green Hydrogen

    India’s transition towards a green hydrogen economy (GHE) can only happen once certain key issues are addressed.

    • Supply-Chain Issues: GHE hinges upon the creation of a supply chain, starting from the manufacture of electrolysers to the production of green hydrogen, using electricity from a renewable energy source.
    • Technology: Green hydrogen needs electrolysers to be built on a scale larger than we’ve yet seen.
    • Storage: Either very high pressures or very high temperatures are required, both with their own technical difficulties.
    • Explosion Hazard: It is hazardous because of its low ignition energy and high combustion energy.
    • Risk to use: Automotive fuels are highly inflammable, but a vehicle laden with hydrogen is likely to be more vulnerable in case of a major accident.
    • High Cost of Production: To become competitive, the price per kilogram of green hydrogen has to reduce to a benchmark of $2/kg. At these prices, green hydrogen can compete with natural gas.
    • Energy intensivity: Creating green hydrogen needs a huge amount of electricity, which means an enormous increase in the amount of wind and solar power to meet global targets.
    • Lack of proper infrastructure, only 500 Hydrogen stations exist globally. Only countable manufacturers are involved as market players in this technology.
    • Others: Low user acceptance and social awareness. Developing after-sales service for hydrogen technology.

    Policy and Economic Challenges

    • Economic sustainability: One of the biggest challenges faced by the industry for using hydrogen commercially is the economic sustainability of extracting green or blue hydrogen.
    • Technological challenges: The technology used in production and use of hydrogen like Carbon Capture and Storage (CCS) and hydrogen fuel cell technology are at nascent stage.
    • Cost Factor: These technologies are expensive which in turn increases the cost of production of hydrogen and will require a lot of investment which in turn add fiscal pressure on government.
    • Higher Maintenance costs: Maintenance costs for fuel cells post-completion of a plant can be costly.
    • Need for legal and administrative adherence: Certification mechanisms, recommendations, and regulations for different components of the system.

    Way forward

    • Hydrogen energy is at a nascent stage of development but has significant potential for realizing the energy transition in India.
    • The new policy is a futuristic vision that can help the country not only cut down its carbon emissions but also diversify its energy basket and reduce external reliance.
    • India’s transition can be a testament to the world on the achievement of energy security, without compromising the goal of sustainable development.
    • The GoI must strongly pursue the objective of creating a GHE to make India a global manufacturing hub and place itself at the top of the green hydrogen export market.

  • Broadcasting Infrastructure and Network Development (BIND) Scheme

    bind

    The Cabinet Committee on Economic Affairs approved the “Broadcasting Infrastructure and Network Development (BIND)” scheme to upgrade Prasar Bharati to expand the public service broadcasting infrastructure across the country.

    Prasar Bharati

    • Prasar Bharati is India’s state-owned public broadcaster, headquartered in New Delhi.
    • It is a statutory autonomous body set up by Prasar Bharati Act, 1990.
    • It comprises the Doordarshan Television Network and Akashvani All India Radio, which were earlier media units of the Ministry of Information and Broadcasting.

     

    BIND Scheme

    • BIND scheme is the vehicle for providing financial support to Prasar Bharati for expenses related to expansion and upgradation of its broadcasting infrastructure, content development and civil work.
    • Its features include-
    1. Outreach expansion: It will enable the public broadcaster to undertake a major upgradation of its facilities with better infrastructure which will widen its reach, in the LWE, border and strategic areas and provide high quality content to the viewers.
    2. Quality content: Another major priority area of the scheme is the development of high-quality content for both domestic and international audience and ensuring availability of diverse content to the viewers.
    3. More TV channels: It seeks to upgrade the capacity of DTH platform to accommodate more channels.
    4. Expansion of radio coverage: The scheme will increase coverage of AIR FM transmitters in the country to 66 percent by geographical area and 80 percent by population up from 59 percent and 68 percent respectively.
    5. Free DISH services: The scheme also envisages free distribution of over 8 lakh DD Free Dish STBs to people living in remote, tribal, left wing extremism inflicted and border areas.

    Benefits provided

    Ans. Employment generation

    • The project has the potential to generate indirect employment by way of manufacturing and services related to supply and installation of broadcast equipment.
    • Content generation and content innovation for AIR and DD has the potential of indirect employment of persons with varied experience of different media fields in the content production sector including TV/radio production, transmission and associated media-related services.
    • Further, the project for expansion of the reach of DD Free Dish is expected to generate employment opportunities in the manufacturing of the DD Free Dish DTH boxes.

     

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  • What is Purchasing Managers Index (PMI)?

    India’s Services sector reported a sharp growth with Services Purchasing Managers’ Index (PMI) surging to 58.5 last month from 56.4 in November 2022.

    Purchasing Managers’ Index (PMI)

    • PMI is an indicator of business activity — both in the manufacturing and services sectors.
    • It is a survey-based measure that asks the respondents about changes in their perception of some key business variables from the month before.
    • It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.
    • The PMI is compiled by IHS Markit based on responses to questionnaires sent to purchasing managers in a panel of around 400 manufacturers.

    How is the PMI derived?

    • The PMI is derived from a series of qualitative questions.
    • Executives from a reasonably big sample, running into hundreds of firms, are asked whether key indicators such as output, new orders, business expectations and employment were stronger than the month before and are asked to rate them.

    How does one read the PMI?

    • A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.
    • Higher the difference from this mid-point greater the expansion or contraction. The rate of expansion can also be judged by comparing the PMI with that of the previous month data.
    • If the figure is higher than the previous month’s then the economy is expanding at a faster rate.
    • If it is lower than the previous month then it is growing at a lower rate.

    What are its implications for the economy?

    • The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available.
    • It is, therefore, considered a good leading indicator of economic activity.
    • Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later.
    • Central banks of many countries also use the index to help make decisions on interest rates.

     

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  • Reserve Bank Integrated Ombudsman Scheme (RBIOS)

    Issues related to ATM/debit cards and mobile/electronic banking were the top grounds of complaints received at the Office of Banking Ombudsman (OBO).

    Why in news?

    • Of these, 3,04,496 complaints were handled by the 22 Offices of RBI Ombudsman (ORBIOs), including the complaints received under the three erstwhile Ombudsman Schemes till November 11, 2021.
    • Complaints related to ATM/ debit cards were the highest at 14.6% of the total, followed by mobile/ electronic banking at 13.6%.
    • About 90% of the total complaints were received through digital modes, including on the online Complaint Management System (CMS) portal.
    • Majority 66.1% of the maintainable complaints were resolved through mutual settlement/ conciliation/ mediation.

    Banking Ombudsman Scheme

    • The Banking Ombudsman Scheme is an expeditious and inexpensive forum for bank customers for resolution of complaints relating to certain services rendered by banks.
    • It is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.
    • Presently the Banking Ombudsman Scheme 2006 (As amended upto July 1, 2017) is in operation.
    • All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the Scheme.
    • As per the present regulations, the ombudsman redressal is allowed for complaints where the compensation amount for any loss suffered by the complainant is limited to Rs 20 lakh.
    • Under the RBI-OS, 2021, following the ‘One Nation, One Ombudsman’ principle, the territorial jurisdictions have been abrogated, and complaints are assigned to all the ombudsmen by the CMS.

    What about other sectors?

    • The Reserve Bank Integrated Ombudsman Scheme (RBIOS) amalgamates three ombudsman scheme of RBI – banking ombudsman scheme of 2006, ombudsman scheme for NBFCs of 2018 and ombudsman scheme of digital transactions of 2019.
    • The unified ombudsman scheme will provide redress of customer complaints involving deficiency in services if the grievance is not resolved to the satisfaction of the customers or not replied within a period of 30 days.
    • The new scheme also includes non-scheduled primary co-operative banks with a deposit size of Rs 50 crore and above.
    • The integrated scheme makes it a “One Nation One Ombudsman’ approach and jurisdiction neutral.

     

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  • Silent Valley Bird Species goes up to 175

    silent valley

    A bird survey conducted at the Silent Valley National Park identified 141 species, of which 17 were new. So far, 175 species of birds have been spotted in Silent Valley.

    Silent Valley National Park

    • It is located in the border of Mannarkkad Taluk of Palakkad district, Nilambur Taluk of Malappuram district, Kerala, and Nilgiris district of Tamil Nadu.
    • This national park has some rare species of flora and fauna. This area was explored in 1847 by the botanist Robert Wight.
    • It is located in the rich biodiversity of Nilgiri Biosphere Reserve.
    • Mukurthi peak, the fifth-highest peak in South India, and Anginda peak are also located in its vicinity.
    • Bhavani River, a tributary of Kaveri River, and Kunthipuzha River, a tributary of Bharathappuzha river, originate in the vicinity of Silent Valley.
    • The Kadalundi River has also its origin in Silent Valley.

    New species spotted

    • Brown wood owl, Banded bay cuckoo, Malabar woodshrike, White-throated kingfisher, Indian nightjar, Jungle nightjar, and Large cuckooshrike were among the 17 species newly identified in the Silent Valley.

     

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  • Demonetization and the digital payment ecosystem

    digital

    Context

    • Paperless payments have been a big national goal ever since 8 November 2016, when India rendered ₹500 and ₹1,000 currency notes useless in a stunning decision that was upheld as valid by the Supreme Court on recently. Today, our cash intensity remains roughly on the same incline as it was earlier. But online payments have soared. This means a fine policy judgement call will need to be made soon.

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    digital

    Demonetization: A brief Analysis

    • The supreme court rejected petitions arguing that demonetization was done illegally and by 4:1 bench majority Supreme court held the process as satisfactory.
    • The overnight note-ban was also found to satisfy a general test of proportionality. For all the hardship caused by weeks of cash starvation, that exercise of authority was not judged too drastic for its aims.
    • The extent to which unaccounted-for money was flushed out, terror funding frozen and commerce formalized cannot reliably be estimated, but small businesses were clearly hit hard and India’s economy slowed down soon after.

    digital

    The changing trend: How we are transacting?

    • Rise of digitals payments: The past half decade’s big trend in our use of money has been the exponential rise of a platform that’s part of our digital stack of public goods.
    • Spectacular success of UPI: Designed for instant transfers between bank accounts done via mobile phones, the Unified Payments Interface (UPI) has been a spectacular success since its 2016 launch.
    • UPI transactions for instance: According to National Payments Corporation of India (NPCI), its operator, UPI processed more than 74 billion transactions in 2022, up 90% over 2021, worth almost ₹126 trillion, a 76% leap.

    Examining feasibility of levying user fee on UPI and the E-rupee

    • Financial support to UPI: The case for UPI as India’s payment bedrock is weakened by the fact that while it levies no user fee, it isn’t a costless service. Last year, the finance ministry justified financial support for UPI on the ground that it’s a digital public good with immense convenience for the public and productivity gains for the economy.
    • Coast benefit review must be done: If public funds are increasingly needed to back UPI as it expands, we must put it to a cost-benefit review as we go along; UPI is already logging huge sums and the total for 2023 may be much more.
    • Promoting E-rupee: It’s not just a cost consideration that should make us promote RBI’s retail e-rupee instead for routine payments.
    • E-rupee is a direct liability of RBI: The E-rupee’s mass usage would involve circulation of money that’s a direct liability of the central bank (an IOU issued by it, i.e., like cash), which would better serve the cause of economic stability. This is because what RBI owes its currency bearers is entirely free of risk, while the same cannot be said of banks.

    digital

    Why India needs a digital rupee?

    • Online transactions: India is a leader in digital payments, but cash remains dominant for small-value transactions.
    • High currency in circulation: India has a fairly high currency-to-GDP ratio.
    • Cost of currency management: An official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.

    Conclusion

    • For superior systemic safety, the e-rupee should get a significant share of online payment swipes. Even if its holdings earn no interest, it could catch on if the security of its value, ease of liquidity and erasure of data trails (below a limit) are duly advertised. For an e-rupee to aid macro level prudence, it will have to eat into UPI.

  • Blue economy and marine pollution

    Blue economy

    Context

    • Blue economy relates to presentation, exploitation and regeneration of the marine environment. It is used to describe sustainability-based approach to coastal resources. The worry is that the oceans are under severe threat by human activities, especially when the economic gains come at the cost of maintaining environmental sanity.

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    Blue economy

    From the beginning: The Blue economy

    • Origin of the concept: Gunter Pauli’s book, “The Blue Economy: 10 years, 100 innovations, 100 million jobs” (2010) brought the Blue Economy concept into prominence.
    • A project to find best nature inspired and sustainable technologies: Blue Economy began as a project to find 100 of the best nature-inspired technologies that could affect the economies of the world. While sustainably providing basic human needs potable water, food, jobs, and habitable shelter.
    • Inclusive approach and objective: This is envisaged as the integration of Ocean Economy development with the principles of social inclusion, environmental sustainability and innovative, dynamic business models
    • Environment friendly maritime infrastructure: It is creation of environment-friendly infrastructure in ocean, because larger cargo consignments can move directly from the mothership to the hinterland through inland waterways, obviating the need for trucks or railways

    Blue economy

    Significance of Maritime transport

    • One of the largest employers within ocean-related activities: Maritime transport plays a big role in the globalised market in the form of containerships, tankers, and ports, coastal tourism is the largest employer within ocean-related activities.
    • Eighty percent trade happens on the seas: Eighty per cent of world trade happens using the seas, 40 per cent of the world’s population live near coastal areas, and more than three billion people access the oceans for their livelihood.
    • Annual value makes up equivalent to seventh largest GDP: A healthy marine environment is essential for a sustainable future for people and the planet. Its value is estimated to be over $25 trillion, with the annual value of produced goods and services estimated to be $2.5 trillion per year, equivalent to the world’s seventh largest economy in gross domestic product (GDP) terms.
    • Ensures food security: The oceans, seas and coastal areas contribute to food security and economic viability of the human population. The ocean is the next big economic frontier, with the rapidly growing numerous ocean-based industries.

    What are the concerns?

    • Human induced Oceanic pollution: Marine activities have brought in pollution, ocean warming, eutrophication, acidification and fishery collapse as consequences on the marine ecosystems.
    • Oceans are rarely financial institutions: The ocean is uncharted territory, and rarely understood by financial institutions. Hence preparedness of these institutions in making available affordable long-term financing at scale is nearly zero.
    • Developing nations pay heavy price: In this journey of achieving blue economy goals, it is developing nations that pay a heavy economic price.
    • Lack of capacity is a critical hindrance: Many of the developing nations have high levels of external debt. Lack of capacity and technology for transition between agri economy and marine economy is also a critical hindrance.
    • Not having a elaborative guiding principles is a major concern: There is concern that without the elaboration of specific principles or guidance, national blue economies, or sustainable ocean economies, economic growth will be pursued with little attention paid to environmental sustainability and social equity.

    Blue economy

    What should be the approach towards achieving Blue economy?

    • Inclusive discussion and participation is must: The blue economy is based on multiple fields within ocean science and, therefore, needs inter-sectoral experts and stakeholders. It is imperative to involve the civil society, fishing communities, indigenous people and communities for an inclusive discussion.
    • SDG-14 journey cannot undermine the other SDGs: The UN stresses that equity must not be forgotten when supporting a blue economy. Land and resources often belong to communities, and the interests of communities dependent on the ocean are often marginalised, since sectors such as coastal tourism are encouraged to boost the economy.
    • Integrated marine spatial planning with national and global expertise is necessary: Developing the blue economy should be based on national and global expertise. It is important that any blue economy transformation should include using integrated marine spatial planning. This would provide collaborative participation of all stakeholders of the oceans, and would make room for debate, discussion and conflict resolution between the stakeholders.

    Where does India stand at this hour?

    • Suitable natural geography: Vast coastline of almost 7,500 kilometres, with no immediate coastal neighbours except for some stretches around the southern tip. In some sense, India has the advantage of its natural geography
    • Opportunity on G20 presidency: It is an opportunity for India to use its G20 Presidency to ensure environmental sustainability, while providing for social equity.
    • Rising role and significance: India’s engagement in the blue economy has been rising, with its active involvement in international and regional dialogues, and maritime/marine cooperation.

    Conclusion

    • Achieving the Blue economy goal would need tremendous human effort, and would call for global cooperation through various legal and institutional frameworks. This also includes the need to develop newer sectors such as renewable ocean energy, blue carbon sequestration, marine biotechnology and ex-tractive activities, with due attention paid to the environmental impacts.

    Mains question

    Q. What do you understand by mean Blue economy? Highlight the importance of maritime transport and discuss what need to be done to achieve blue economy in a true sense?

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