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  • Global Geological And Climatic Events

    Chile’s Atacama Salt Flat sinking due to Lithium Mining

    Prelims Only | Enviro & Biodiversity | Mains Paper 3: Conservation, Environmental Pollution & Degradation, Eia

    Why in the News?

    • A recent study published in journal IEEE Transactions on Geoscience and Remote Sensing has found that Chile’s Atacama salt flat (Salar de Atacama) is sinking at a rate of 1 to 2 centimetres per year due to lithium brine extraction.
      • Lithium brine extraction involves pumping salt-rich water to the surface and letting it evaporate in ponds to collect lithium.

    About Salar de Atacama  

    • The Salar de Atacama in Chile boasts the highest lithium concentration (0.15% by weight) among all brine sources worldwide.
    • Argentina boasts more than half of the world’s total lithium resources.
    • It holds the distinction of having the 2nd-largest lithium resources, the 3rd-largest lithium reserves, and the 4th-largest lithium production in the world.
    • It is a part of the Lithium Triangle comprising of Uyuni (Bolivia) and Hombre Muerto (Argentina).

    Key Findings of the Study:

    • Researchers analyzed satellite data from 2020 to 2023 to observe deformations in the Earth’s crust in the salt flat.
    • The area experiencing subsidence measures approximately 8 km north to south and 5 km east to west.
    • The study indicates that subsidence occurs because the rate of lithium brine pumping is faster than the recharge rate of aquifers, leading to the ground sinking.

    What is Lithium?

    • Lithium is an alkali metal, often referred to as ‘white gold’ due to its value and color.
    • It is a soft, silvery-white metal, and notably, it is the lightest metal on the periodic table.
    • It is typically found in various minerals like spodumene, petalite, and lepidolite, from which it is extracted and refined.
    • The leading producers of lithium are Australia, Chile, China, and Argentina.

    Effects of Lithium Mining on Environment:

    • Water Use: Lithium mining, especially from salt flats and brine pools, requires substantial water usage, which can deplete local water resources in arid areas.
    • Ecological Disruption: The extraction process can alter the chemical balance of the natural environment, affecting local flora and fauna.
    • Pollution: Mining and processing lithium can release harmful chemicals into the environment, impacting air and water quality.

    PYQ:

    [2008] Which one of the following pairs of metals constitutes the lightest metal and the heaviest metal, respectively?

    (a) Lithium and mercury

    (b) Lithium and osmium

    (c) Aluminium and osmium

    (d) Aluminium and mercury

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  • Civil Services Reforms

    [pib] ANUBHAV AWARDS, 2024

    Prelims Only | Trivia | Mains Paper 2: Governance, Transparency & Accountability, Citizens Charters

    Why in the News?

    The Minister of State for Personnel, Public Grievances, and Pensions has conferred the Anubhav Awards 2024.

    ANUBHAV Awards

    Details
    Purpose To recognize the contributions of retired officials to nation-building and document the administrative history of India through their written narratives.
    Portal Launch Launched in March 2015.
    Organizing Body Ministry of Personnel, Public Grievances & Pensions, Department of Pension & Pensioners’ Welfare.
    Objectives – Create a database of significant suggestions and work experiences.
    – Utilize the experience of retiring employees for nation-building.
    – Enable Ministries/Departments to consider useful and replicable suggestions.
    Criteria Retiring Central Government employees and pensioners, who can submit their Anubhav write-ups 8 months prior to retirement and up to 1 year post-retirement.
    Award Process Write-ups are assessed by the concerned Ministries/Departments, published, and then shortlisted for the Anubhav Awards and Jury Certificates.
    Awards and Recognition – ANUBHAV Awardees: Receive a medal, certificate, and a prize of ₹10,000.
    – Jury Certificate Winners: Receive a medal and a certificate.

     

    PYQ:

    [2021] Consider the following statements in respect of Bharat Ratna and Padma Awards :​

    1. Bharat Ratna and Padma Awards are titles under the Article 18(1) of the Constitution of India.​

    2. Padma Awards, which were instituted in the year 1954, were suspended only once.​

    3. The number of Bharat Ratna Awards is restricted to a maximum of five in a particular year.​

    Which of the above statements are not correct?​

    (a) 1 and 2 only ​

    (b) 2 and 3 only​

    (c) 1 and 3 only ​

    (d) 1, 2 and 3​

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  • Financial Inclusion in India and Its Challenges

    [pib] 10 Years of Jan Dhan Scheme

    Prelims OnlySchemes | Governance | Mains Paper 2: Government Scheme/Policies

    Why in the News?

    PM Modi launched the Pradhan Mantri Jan Dhan Yojana (PMJDY) on 28th August 2014.  It has now completed a decade of successful implementation.

    About PMJDY

    Details
    Objective • Banking the Unbanked: Open basic savings bank deposit (BSBD) accounts with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges.
    • Securing the Unsecured: Issue Indigenous Debit cards with free accident insurance coverage of ₹2 lakh.
    • Funding the Unfunded: Provide micro-insurance, overdraft, micro-pension, and micro-credit facilities.
    Initial Features • Universal Access to Banking Services: Access through branches and BCs.
    • Basic Savings Bank Accounts: With an overdraft facility of up to ₹10,000 for every eligible adult.
    • Financial Literacy Program: Promote savings and credit usage.
    • Insurance: Accident cover up to ₹1 lakh and life cover of ₹30,000 for accounts opened between Aug 2014 to Jan 2015.
    • Pension Scheme: For the unorganized sector.
    • Creation of Credit Guarantee Fund.
    Key Provisions • Inter-operability: Through RuPay debit card or Aadhaar-enabled Payment System (AePS).
    • Fixed-point Business Correspondents.
    • Simplified KYC / e-KYC.
    Extension and New Features (Post-2018) • Focus Shift: From ‘Every Household’ to ‘Every Unbanked Adult’.
    • RuPay Card Insurance: Increased accidental insurance cover to ₹2 lakh for new accounts.
    • Overdraft Facilities Enhanced: Limit doubled from ₹5,000 to ₹10,000; up to ₹2,000 without conditions.
    • Increase in upper age limit for OD: From 60 to 65 years.
    Eligibility for Other Programs  PMJDY accounts are eligible for Direct Benefit Transfer (DBT), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), and Atal Pension Yojana (APY).

    Successes of PMJDY

    • Financial Inclusion: PMJDY is recognized as the largest financial inclusion initiative globally, with over 53 crore bank accounts opened as of August 2024. 
      • It has facilitated access to credit for individuals without a formal financial history, as evidenced by the rise in Mudra loan sanctions at a compounded annual rate of 9.8% from FY 2019 to FY 2024.
    • Social Empowerment: 55.6% of Jan Dhan account holders are women, and 66.6% of accounts are in rural and semi-urban areas, demonstrating the program’s reach among marginalized communities.
    • Deposit Growth: The total deposits in PMJDY accounts have reached Rs. 2.31 lakh crore, showing a 15-fold increase since August 2015.
    • Digital Transaction Growth: Digital transactions under PMJDY have surged, with UPI financial transactions growing from 535 crore in FY 2018-19 to 13,113 crore in FY 2023-24.
    • Effective DBT Mechanism: The Jan-Dhan Aadhaar Mobile (JAM) trinity has enabled a diversion-proof subsidy delivery mechanism, with subsidies and social benefits directly transferred into the bank accounts of the underprivileged.
    • Savings and Financial Discipline: The average deposit in the PMJDY account has increased 4 times since August 2015, indicating improved saving habits among account holders.

    PYQ:

    [2015] ‘Pradhan Mantri Jan-Dhan Yojana’ has been launched for

    (a) Providing housing loan to poor people at cheaper interest rates.

    (b) Promoting women’s Self-Help Groups in backward areas.

    (c) Promoting financial inclusion in the country.

    (d) Providing financial help to the marginalized communities.

    [2016] Pradhan Mantri Jan Dhan Yojana (PMJDY) is necessary for bringing unbanked to the institutional finance fold. Do you agree with this for financial inclusion of the poorer section of the Indian society? Give arguments to justify your opinion.

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  • Judicial Pendency

    Report reveals minimal use of Plea Bargaining in Courts

    Prelims Only | Polity | Mains Paper 2: Executive & Judiciary

    Why in the News?

    According to a report by the Ministry of Law and Justice, only 0.11% of cases were settled through “plea bargaining” in 2022.

    Key Findings of the Report:

    • In 2022, only 19,135 out of 1,70,52,367 cases (about 0.11%) in Indian courts were disposed of through plea bargaining, indicating its minimal use.
    • Despite legal restrictions, 119 cases of crimes against women and only 4 cases under the Protection of Children from Sexual Offences Act (POCSO) were resolved through plea bargaining in 2022, showing a deviation from the intended exclusions.

    What is Plea Bargaining?

    Details
    Definition
    • Plea bargaining allows an accused person to negotiate with the prosecution for a lesser punishment by pleading guilty to a less serious offence. 
    • This involves pre-trial negotiations on the charge or the sentence.
    Provision in India • Introduced in 2006 as part of the Criminal Law (Amendment) Act, 2005 under Chapter XXI-A (Sections 265A to 265L).
    • Limited to offences that do not attract the death sentence, life sentence, or a term above seven years.• Not applicable to offences affecting socio-economic conditions or committed against women or children under 14. (applies only to offences punishable by up to seven years of imprisonment)
    Procedure in India • Only the accused can initiate plea bargaining.
    • The accused must apply to the court to start the process. If permitted, a meeting involving the prosecutor, investigating officer, and victim (if any) is held for a satisfactory case disposition.
    • Includes possible reduced sentences and compensation payments to the victim by the accused.
    Benefits Offered • Speeds up trials, reduces litigation costs and ends uncertainty over case outcomes.
    • Helps reduce prison overcrowding and the number of prolonged imprisonments of undertrials.
    • Offers a chance for offenders to make a fresh start.
    • Could improve conviction rates, as seen in the USA.
    • Recommended by the Malimath Committee (2000) for its potential to dramatically impact conviction rates and ensure a speedy trial.

     

    PYQ:

    [2021] With reference to India, consider the following statements:​

    1. Judicial custody means an accused is in the custody of the concerned magistrate and such accused is locked up in police station, not in jail.​

    2. During judicial custody, the police officer in charge of the case is not allowed to interrogate the suspect without the approval of the court.​

    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​

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  • Foreign Policy Watch: India-Pakistan

    On the unrest in the Balochistan region

    Explained | International Relations | Mains Paper 2: India & Its Neighborhood – Relations

    Why in the News?

    The recent protests are a significant part of Balochistan’s long history of political struggles. They highlight the difficulties Pakistan faces in creating a country based solely on religion.

    Causes and Reasons for the Recent Protests in Balochistan:

    Balochistan has a long history of resistance against central authority, dating back to the forced accession of the region to Pakistan in 1948.

    • Political Discontentment: The continued centralization of power, lack of genuine federalism, and repeated dismissals of provincial governments have fueled discontent.
    • Economic Neglect: Despite being rich in resources like copper, gold, coal, and natural gas, Balochistan remains one of the poorest regions in Pakistan. The benefits of resource exploitation have not trickled down to the local population, exacerbating feelings of economic injustice.
    • Cultural and Ethnic Identity: Balochistan has a distinct cultural and historical identity, which has often clashed with the central government due to assimilation policies.
    • Human Rights Violations: The region has seen widespread reports of enforced disappearances, custodial killings, and fake encounters as part of Pakistan’s counter-insurgency strategy.

    China’s Role in the Region:

    • Gwadar Port and Militarization Concerns: The Gwadar port, leased to a Chinese firm for 40 years, has raised fears of potential militarization, which could disrupt local livelihoods, especially those of the fishing communities.
      • The presence of Chinese trawlers has also sparked protests due to concerns about illegal fishing.
    • CPEC influence: The influx of non-locals into Balochistan for CPEC-related projects has led to fears of demographic changes, further alienating the local population.

    Indian perspective: 

    • Strategic Implications: India’s interest in Balochistan primarily stems from the region’s strategic importance, given its location and the Gwadar port’s proximity to the Strait of Hormuz.
    • Diplomatic Stance: India has occasionally highlighted human rights issues in Balochistan, especially in international forums, as a counter-narrative to Pakistan’s stance on Kashmir. However, India’s involvement remains cautious to avoid escalating tensions with Pakistan.
    • Impact on Regional Stability: The unrest in Balochistan, coupled with Chinese involvement, complicates the security situation in South Asia.
      • India’s approach will likely focus on balancing its strategic interests while advocating for the rights of the Baloch people within international norms.

    Way forward: (What should India do?)

    • Diplomatic Advocacy: India should continue to highlight human rights issues in Balochistan at international forums, positioning itself as a defender of human rights while maintaining a balanced approach to avoid escalating tensions with Pakistan.
    • Strategic Monitoring: India should closely monitor developments in Balochistan, particularly regarding Chinese activities in the Gwadar port, to safeguard its strategic interests and regional stability.

    Mains PYQ: 

    Q The China-Pakistan Economic Corridor (CPEC) is viewed as a cardinal subset of China’s larger ‘One Belt One Road’ initiative. Give a brief description of CPEC and enumerate the reasons why India has distanced itself from the same. (150 Words, 10 Marks)  (UPSC IAS/2018)

    Q ‘China is using its economic relations and positive trade surplus as tools to develop potential military power status in Asia’, In the light of this statement, discuss its impact on India as her neighbor. (UPSC CSE 2017)

    Q China and Pakistan have entered into an agreement for development of an economic corridor. What threat does this pose for India’s security? Critically examine (UPSC CSE 2014)

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  • Health Sector – UHC, National Health Policy, Family Planning, Health Insurance, etc.

    Crime, health-worker safety, and a self-examination 

    Explained | Indian Society | Mains Paper 2: Health & Education

    Why in the News?

    • The recent brutal rape and murder case in Kolkata has sparked widespread calls for the death penalty for the accused.
      • The Justice J.S. Verma Committee, formed in response to the 2012 Delhi gang rape, recommended against the death penalty for rape, even in the rarest of rare cases, arguing that it would be a regressive step.

    Deeper problem in the Health Care Sector: 

    • Healthcare Violence: The protests by resident doctors stem from a series of violent attacks against medical personnel. This violence often arises from disgruntled patients and their families who perceive poor healthcare services.
    • Corruption in Healthcare: The World Health Organization estimates that corruption claims nearly $455 billion annually, which could otherwise extend universal health coverage globally.
      • In India, this corruption manifests in various forms, including bribery and sextortion, further undermining the healthcare system’s integrity.
    • Ineffective Responses: Traditional responses to healthcare violence, such as enhancing security and legal measures, have proven inadequate. These knee-jerk reactions fail to address the root causes of the violence.

    What does the Justice K. Hema Committee report say on the Culture of Assault?

    • On Sexual Assault and Consent: Instances of sexual assault are not isolated events but are rooted in societal practices that undermine women’s autonomy and consent.
      • The National Crime Records Bureau reported 31,516 cases of rape in India in 2022, indicating a significant prevalence of sexual violence against women.
      • The Justice Hema Committee report emphasizes that rape is a manifestation of a culture that views women as objects rather than individuals with rights.
    • On Workplace Harassment: The Vishaka guidelines established in 1997 aimed to protect women from workplace harassment, leading to the Sexual Harassment of Women at Workplace Act, 2013, which mandates the formation of Internal Complaints Committees (ICC).
      • The report argues that ICCs are inadequate for the film industry due to potential biases and influence from abusers, advocating for an independent government forum to address these issues.

    Need to Rethink Violence in Healthcare:  

    • Understanding the Multi-faceted Nature of Violence: Violence in healthcare settings is not limited to patient assaults on healthcare workers, it also includes institutional and managerial violence. This encompasses horizontal violence among healthcare providers and the systemic issues that create a hostile work environment.
    • Implementing Comprehensive Safety Measures: While immediate responses such as improving security and legal protections are necessary, they must be part of a broader strategy that includes training healthcare workers on conflict resolution, mental health support, and creating a culture of safety within healthcare institutions.

    About Justice J.S. Verma Committee Recommendations

    Recommendations on

    Explanation
    Rape • It recognized rape as a Crime of Power, not just passion.
    • Expand definition to include all forms of non-consensual penetration.
    • Remove marital rape exception; marriage should not imply automatic consent. (European Commission of Human Rights in C.R. vs U.K)
    Sexual Assault • Broaden definition to include all non-consensual, non-penetrative sexual acts.
    • Penalty: Up to 5 years of imprisonment or fines.
    Verbal Sexual Assault • Criminalize unwelcome sexual threats.
    • Punishable by up to 1 year in prison or fines.
    Sexual Harassment at Workplace • Include domestic workers under protections.
    • Replace internal complaint committees with Employment Tribunals.
    • Employers to compensate victims of sexual harassment.
    Acid Attacks • Propose a 10-year minimum punishment, separate from grievous hurt.
    • Establish a compensation fund for victims.
    Women in Conflict Areas • Review AFSPA; exclude government sanction for prosecuting sexual offenses by armed forces.
    • Appoint special commissioners to monitor offenses.
    Trafficking • Comprehensive anti-trafficking laws beyond prostitution.
    • Protective homes for women and juveniles overseen by High Courts.
    Child Sexual Abuse • Define ‘harm’ and ‘health’ in the Juvenile Justice Act to include both physical and mental aspects.
    Death Penalty • Opposed chemical castration and death penalty for rape.
    • Recommend life imprisonment.
    Medical Examination of Rape Victims • Ban the two-finger test; victim’s past sexual history should not influence the case.
    Reforms in Case Management • Set up Rape Crisis Cells, increase police accountability, allow online FIR filing.
    • Encourage community policing and increase police personnel.

    Need for a Comprehensive Approach:

    • National Task Force: Improving hospital security and infrastructure alone may not be sufficient to address the problem. The national task force constituted by the Supreme Court should devise a comprehensive road map to prevent and arrest medical corruption, particularly in the public sector.
    • Need Expertise: The task force should include experts from public health, medico-legal, and other allied fields, along with the participation of the larger governing and administrative community.

    Note: Recently some states have taken steps to empower women. For example, the Himachal Pradesh Assembly passed a Bill on Tuesday to increase the minimum marriage age for women from 18 to 21 years.

    Mains PYQ: 

    Q Appropriate local community level healthcare intervention is a prerequisite to achieve ‘Health for All’ in India. Explain. (UPSC CSE 2018)

    Q We are witnessing increasing instances of sexual violence against women in the country. Despite existing legal provisions against it, the number of such incidences is on the rise. Suggest some innovative measures to tackle this menace. (UPSC CSE 2014)

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  • Electoral Reforms In India

     Many questions about ‘one nation, one election’   

    Explained | Polity | Mains Paper 2: Federalism

    Why in the News?

    In an Independence Day speech, the Prime Minister renewed his push for simultaneous elections, targeting implementation by the 2029 polls.

    Pros and Cons of Simultaneous Elections in India:

    Pros

    Cons
    1. Cost Reduction: It can decrease the deployment of resources such as EVMs, security personnel, and election management teams to only one time in 5 years.
    2. Continuity in Governance: Simultaneous elections can prevent the frequent imposition of the Model Code of Conduct, which disrupts government development activities and decision-making processes.
    3. Reduced Election Fatigue: Voters, political parties, and the administration could benefit from reduced election fatigue, allowing them to focus more on governance and development.
    4. Uniformity in Policy Implementation: Central and state governments can work in sync on policy implementation without the hindrance of upcoming elections in various states.
    1. Constitutional Challenges: The implementation of simultaneous elections would require significant amendments to the Constitution, particularly Articles 83, 85, 172, and 174, which deal with the duration of legislative bodies.
    2. Federalism Concerns: Opponents argue that simultaneous elections could undermine the federal structure of India, marginalizing regional parties and giving dominance to national parties.
    3. Voter Disengagement: The synchronization of elections might lead to voter disengagement due to the overwhelming nature of combined elections, where national issues may overshadow regional ones.

    Key Recommendations of High-Level Committee

    The High-Level Committee on Simultaneous Elections, chaired by former President Ram Nath Kovind, has made several significant recommendations aimed at synchronizing elections for the Lok Sabha, state assemblies, and local bodies in India.

    1. Amendment to Article 82A: Allow the President to set an ‘Appointed Date’ for starting simultaneous elections to Lok Sabha and Legislative Assemblies
    2. Term Synchronization: States with elections between June 2024 and May 2029 would have their terms end with the 18th Lok Sabha, enabling the first simultaneous elections in 2029
    3. Premature Dissolution Measures: Fresh elections only for the remaining term until the next simultaneous elections in case of early dissolution of Parliament or state Assembly
    4. Synchronization of Local Body Elections: Parliament to pass legislation to align municipalities and panchayats elections with General Elections within 100 days
    5. Single Electoral Roll: The committee advocates for a single electoral roll applicable to all tiers of government, which would require an amendment to Article 325. This aims to reduce redundancy and duplication in voter registration.
    6. Logistical Arrangements: ECI to provide detailed logistical and expenditure plans for simultaneous elections in coordination with SECs.

    Way forward: 

    • Constitutional and Legal Reforms: Begin with phased constitutional amendments and legal reforms to address the challenges of synchronization while ensuring that the federal structure and democratic principles are preserved.
    • Pilot Implementation: Consider piloting simultaneous elections in a few states with synchronized local body elections to assess feasibility, logistical challenges, and public response before scaling up to the national level by 2029.

    Mains question for practice:

    Q Discuss the feasibility and implications of implementing simultaneous elections in India by 2029, as recently proposed by the Prime Minister. 15M 

    Mains PYQs

    ‘Simultaneous election to the Lok Sabha and the State Assemblies will limit the amount of time and money spent in electioneering but it will reduce the government’s accountability to the people’ Discuss. (UPSC CSE 2017)

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  • Right To Privacy

    What is a Polygraph Test?

    Prelims Only | Polity | Mains Paper 2: Indian Constitution – historical underpinnings, evolution, features, amendments, significant provisions and basic structure

    Why in the News?

    The Central Bureau of Investigation (CBI) concluded polygraph tests on the accused in the Kolkata Rape and Murder Case.

    About Polygraph Tests in India

    Details
    Definition A procedure measures physiological responses like blood pressure, pulse, respiration, and skin conductivity while a subject answers questions to detect deception.
    Physiological Indicators • Heart Rate and Blood Pressure: Monitored for changes.
    • Respiratory Rate: Tracks breathing patterns.
    • Galvanic Skin Response (GSR): Measures skin’s electrical conductance, which varies with moisture levels.
    Procedure • Sensor Connection: Attached to the chest, fingertips, and arm.
    • Baseline Questions: Establish physiological response baselines.
    • Control and Relevant Questions: Analyzed to identify deceptive responses by comparing physiological changes.
    Constitutional Provisions • Article 20(3): Protects against self-incrimination; necessitates consent for polygraph tests.
    • Article 21: Concerns about potential violations of the right to life and privacy due to mental torture aspects of polygraph tests.
    Legal and Judicial Rulings • Selvi vs. State of Karnataka (2010): Tests must be voluntary with informed consent.
    • D.K. Basu vs. State of West Bengal (1997): Involuntary tests could violate the Right to Life and Privacy.
    Admissibility in Court According to the Indian Evidence Act, 1871, results from polygraph tests are not admissible as evidence in court.
    Guidelines National Human Rights Commission Guidelines (1999): Establish consent and procedural requirements for administering polygraph tests to align with human rights standards.

     

    PYQ:

    [2018] Right to Privacy is protected as an intrinsic part of Right to Life and Personal Liberty. Which of the following in the Constitution of India correctly and appropriately imply the above statement?

    (a) Article 14 and the provisions under the 42nd Amendment to the Constitution.

    (b) Article 17 and the Directive Principles of State Policy in Part IV.

    (c) Article 21 and the freedoms guaranteed in Part III.

    (d) Article 24 and the provisions under the 44th Amendment to the Constitution.

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  • Microfinance Story of India

    MUDRA 2.0 Loans

    Prelims Only | Economics | Mains Paper 3: Indian Economy

    Why in the News?

    The Union Budget 2024 has sought to increase the loan limit under the MUDRA scheme signifying the potential launch of MUDRA 2.0.

    What is MUDRA 1.0?

    Details
    Launch
    • Pradhan Mantri Mudra Yojana (PMMY)
    • Launched in 2015.
    Purpose To extend affordable credit to micro and small enterprises, bringing them into the formal financial system and funding the unfunded.
    Loan Providers Public Sector Banks (PSU Banks), Regional Rural Banks, Cooperative Banks, Private Sector Banks, Foreign Banks, Micro Finance Institutions (MFI), and Non-Banking Finance Companies (NBFC).
    Eligibility Indian citizens with a business plan for non-farm sector income-generating activities in manufacturing, processing, trading, or services, requiring less than ₹10 lakh.
    Types of Loans • Shishu: Loans up to ₹50,000.
    • Kishor: Loans above ₹50,000 and up to ₹5 lakh.
    • Tarun: Loans above ₹5 lakh and up to ₹10 lakh.
    Subsidy
    • No direct subsidy;
    • Loans linked to Government schemes providing capital subsidies are eligible under PMMY.

    Achievements of MUDRA 1.0

    • Financial Inclusion: Disbursed over Rs 27.75 lakh crore to 47 crore small entrepreneurs, improving access to formal credit.
    • Support for Marginalized Groups: 69% of loans went to women, and 51% to SC/ST and OBC entrepreneurs, enhancing social equity and gender equality.
    • Job Creation: Helped create jobs and encouraged self-employment, especially in rural and semi-urban areas.
    • Reduction in NPAs: Reduced non-performing assets (NPAs) from 3.61% in FY21 to 2.1% in FY24, showing better loan management.

    Challenges Faced by MUDRA 1.0

    • Unequal Loan Distribution: In 2021-22, the top 10 districts received Rs 26,000 crore, about the same as the bottom 318 districts, showing uneven credit distribution.
    • High NPAs in Early Categories: The Shishu (loans up to Rs 50,000) and Kishore (loans between Rs 50,001 and Rs 5 lakh) categories had NPAs above 4% from FY20 to FY22 due to a lack of business skills among early-stage entrepreneurs.
    • Low Financial Literacy: Only 27% of the population is financially literate, leading to poor loan management and higher defaults.
    • Monitoring and Credit Appraisal Issues: Increased lending led to challenges in maintaining quality credit appraisal processes and monitoring, resulting in some misuse of funds.

    What is MUDRA 2.0?

    • MUDRA 2.0 is the proposed next phase of the scheme, aiming to expand and enhance support for micro-entrepreneurs, especially in underserved regions.
    • Features of MUDRA 2.0:
      • Expanded Outreach: Establish new centers in rural and semi-urban areas to provide financial literacy, mentorship, and business support.
      • Enhanced Financial Literacy: Launch nationwide programs covering budgeting, savings, credit management, and digital literacy to help entrepreneurs manage their finances better.
      • Improved Credit Support: Introduce the Enhanced Credit Guarantee Scheme (ECGS) to reduce risks for banks and encourage more lending to small enterprises.
      • Stronger Monitoring: Implement a robust monitoring framework using data analytics to track loan disbursements, usage, and repayments in real-time, ensuring transparency and reducing misuse.

    PYQ:

    [2016] Pradhan Mantri MUDRA Yojana is aimed at:

    (a) Bringing the small entrepreneurs into formal financial system.

    (b) Providing loans to poor farmers for cultivating particular crops.

    (c) Providing pension to old and destitute persons.

    (d) Funding the voluntary organizations involved in the promotion of skill development and employment generation.

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  • International Space Agencies – Missions and Discoveries

    What was the Great Moon Hoax of 1835?

    Prelims Only | Science Tech | Mains Paper 3: Awareness in various sc and tech fields

    Why in the News?

    The Great Moon Hoax of 1835 is a series of fabricated news reports published by The New York Sun, an American newspaper, claiming that life had been discovered on the moon.

    What is the Great Moon Hoax of 1835?

    • The Great Moon Hoax was a series of newspaper articles falsely claiming that John Herschel, an astronomer, had discovered life on the moon.
    • The hoax was created and published by The New York Sun, a daily newspaper in New York City, starting on August 25, 1835.
    • It described various fantastical creatures, such as bat-winged humanoids (called Vespertilio-homo), unicorns, and upright beavers, along with detailed landscapes and other features of the moon.
    • These reports were entirely fictional and intended as satire.
    • However, they were widely believed by the public and reprinted in other newspapers.

    Why the Hoax was conceived?

    • To Mock Religious Influence on Science: It aimed to satirize the blend of religious beliefs with scientific claims, especially in astronomy.
    • Boost Readership: The hoax was a tactic to increase The New York Sun’s circulation from 8,000 copies a day.
    • Challenge Public Credulity: It highlighted how easily the public could be deceived by sensational stories without verifying their accuracy.

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