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  • Let’s make ₹ a global currency: PM to RBI

    Why in the news? 

    PM Modi asked the RBI to prepare a 10-year strategy to make the Indian rupee a globally “accessible and acceptable” currency and to meet the credit needs of every segment of the country

    What is Global Currency?

    A global currency refers to a single currency that is used by every country in the world. This concept involves all nations adopting the same currency for international trade and transactions

    What are the major challenges for India to make Rupeea a Global Currency?

    • Economic Stability: The Indian economy would need to demonstrate consistent stability and growth to inspire confidence among international investors and users of the currency.  
    • Liquidity in Financial Market Development:  These markets need to be deep and liquid to accommodate large volumes of international transactions denominated in INR.
    • Capital Controls: India currently has restrictions on capital flows in and out of the country. These would need to be eased to facilitate international trade and investment denominated in INR.
    • Legal and Regulatory Framework: There would need to be robust legal and regulatory frameworks in place to govern the use of the INR in international transactions, including clearing and settlement systems, as well as dispute resolution mechanisms.
    • International/ Investors Acceptance: Convincing other countries, businesses, and individuals to adopt the INR as a global currency would require concerted diplomatic efforts, as well as initiatives to promote its use in international trade and finance.
    • Currency Convertibility: Full convertibility of the INR would be necessary for it to become a global currency.

    Indian Efforts to Make Rupee a Global Currency:

    • RBI’s Roadmap for Rupee Internationalization: The RBI has published a report outlining a roadmap for the internationalization of the Rupee. This roadmap recommends actions such as including the Rupee in the Special Drawing Rights (SDR) basket, promoting its use in trade invoicing and settlement, facilitating its use in offshore markets, and developing financial products denominated in Rupees.
    • Promoting Use of Local Currencies for Cross-Border Transactions: India has been engaging in agreements with countries like the UAE to promote the use of local currencies, including the Rupee, for cross-border transactions.

    Way Forward:

    • Need for Transactions in Rupee: To be an accepted International Currency, the Indian rupee is to be freely used in transactions by residents and non-residents and as a reserve currency for global trade.
    • Need to increase the Exports: Indian Trades need to be promoted beyond the Asian region.  All export and import transactions need to be invoiced in Indian rupees.
    • Reducing the Constraints: Legal and Regulatory frameworks need to be freed to attract investors for their business profits without hampering security concerns.

    https://www.hindustantimes.com/india-news/lets-make-a-global-currency-pm-to-rbi-101711996093588.html

    https://theprint.in/opinion/indian-rupee-can-become-global-reserve-currency-but-modi-govt-must-bring-reforms-for-that/1738000/

  • Why Supreme Court bar unregulated soil extraction for linear projects?

    Why in the News?

    Recently, the SC revoked the notification given by the Environment Ministry to exempt the extraction of ordinary earth for linear projects, such as road and railway construction.

    • It was challenged before the National Green Tribunal (NGT), which asked the Ministry to review it within three months. However, the Ministry did not take any action, leading the matter to reach the SC.

    What are the linear projects? 

    Linear projects refer to Construction or Development Projects. It includes the construction of linear structures like utility lines, pipelines, railroad tracks, highways, stormwater channels, and stream restoration activities.

    What was the 2020 exemption?

    • September 2006: The Environment Ministry issued a notification under the Environment (Protection) Act, 1986, on activities that would require prior Environmental Clearance.
    • January 2016: A second notification was issued, exempting certain categories of projects from this requirement.
    • March 2020: It added “Extraction or sourcing or borrowing of ordinary earth for the linear projects such as roads, pipelines, etc” to the list of exempted activities.
      • The general purpose of the 2020 notification was to conform to the amendments made to the Mines and Minerals (Development and Regulation) Act, 1957, in March 2020, allowing new lessees to continue mining for two years with the statutory clearances and licenses issued to their predecessors.

    Nexus between the Judiciary and the Union Government (Ground for Challenges)

      • Judicial stand: The SC invalidated the broad and random exception, highlighting that the announcement was rushed during the COVID-19 lockdown without seeking feedback or objections through prior notification.
    • The exemption granted without incorporating safeguards was deemed arbitrary and violative of Article 14 of the Constitution.
    • The court emphasized that the absence of safeguards defeats the purpose of the Environment Protection Act (EP Act).
    • An argument by the center: The Center contended that the exemption was essential “to benefit the general public” and would support “the kumhars (potters), farmers, gram panchayats, banjaras, roads of Gujarat,” and all non-mining activities recognized by the states.
      • However, the Apex court stated that the Centre had failed to provide reasons for concluding that the notification was issued in the public interest.

    Similar Judicial Scrutiny in the Past:

    • January 2018: The NGT quashed an exemption offered by the Ministry’s 2016 notification from the requirement of prior EC for building and construction activities having built-up areas of more than 20,000 sq m. According to the Tribunal, there was nothing to suggest an improvement in the quality of the environment to justify the exemption.
    • July 2015: Underlining that the EP Act mandates prior approval, the NGT struck down two Office Memorandums issued by the Ministry in December 2012 and June 2013 for granting ex-post facto EC to projects under the 2006 notification.
    • July 2021: Another notification of the Ministry that sought to perpetuate an amnesty window opened for just six months in March 2017 to clear projects under the “violation category” and issued ex-post facto approval to more than 100 projects, until the SC stayed it in January this year.
    • March 2024: The Kerala HC quashed a 2014 notification that exempted educational institutions and industrial sheds with built-up areas of more than 20,000 sq m from obtaining EC.

     

    Conclusion: The Supreme Court invalidated the Environment Ministry’s exemption for earth extraction in linear projects due to a lack of justification and safeguards, emphasizing compliance with Environmental Clearance to minimize environmental harm, safeguarding the Environment Protection Act’s purpose.

    Mains PYQ

    Q How does the draft EnvironmentImpact Assessment(EIA)Notification, 2020 differ from the existing EIA Notification, 2006? (UPSC IAS/2020)

  • 90 years of the Reserve Bank of India (RBI)

    Why in the news?

    Recently, the RBI celebrated its 90th year in Mumbai, marking a significant milestone.

    Dr. Ambedkar’s Role in the Establishment of RBI:

    • Dr. B.R. Ambedkar’s contributions were particularly notable during the Hilton Young Commission discussions in 1926, where he presented his recommendations based on his book “The Problem of the Rupee – Its Origin and Its Solution.”
    • These discussions laid the foundation for the establishment of the RBI on April 1, 1935.

    About Reserve Bank of India (RBI)

    • The RBI is the central bank and monetary authority of India.
    • It was established on April 1, 1935, under the Reserve Bank of India Act, 1934.
    • Its idea was incepted from the recommendations of the Hilton Young Commission.
    • Sir Osborne Arkell Smith, an Australian, served as the inaugural Governor.
    • He was succeeded by Sir C D Deshmukh, the first Indian to hold the position.
    • It is a centralized institution for India to effectively regulate its monetary and credit policies.
    • RBI had its initial headquarters in Kolkata, later moving permanently to Mumbai in 1937.
    • Initially, the RBI operated as a privately owned entity until its full nationalization in 1949.

    Functions and Initiatives:

    • Monetary Authority: The RBI controls the supply of money in the economy to stabilize exchange rates, maintain a healthy balance of payment, and control inflation.
    • Issuer of Currency: Sole authority to issue currency and combat circulation of counterfeit notes.
    • Banker to the Government: Acts as a banker to both the Central and State governments, providing short-term credit and financial advisory services.
    • Lender of Last Resort: Provides emergency liquidity assistance to banks during crises.
    • Custodian of Foreign Exchange Reserves: Manages foreign exchange reserves and administers the Foreign Exchange Management Act, 1999 (FEMA).
    • Regulator and Supervisor of Payment and Settlement Systems: Oversees payment and settlement systems in the country, ensuring efficiency and security.
    • Credit Control and Developmental Role: Promotes credit availability to productive sectors and fosters financial infrastructure development.

    Transformative Reforms initiated by the RBI

    • Green Revolution (1960s-1970s): Supported agricultural growth through credit facilities and rural credit accessibility enhancements.
    • Banks Nationalization (1969): Aimed at aligning banking sector objectives with national policy goals.
    • Priority Sector Lending (1972): Ensures timely credit flow to key sectors of the economy.
    • Economic Liberalization (1991): Opened up the economy to global markets, fostering market-oriented growth.
    • Unified Payment Interface (UPI), 2016: Enabled seamless and instant transactions across India.
    • Inflation Targeting Framework, 2016: Set inflation targets to guide monetary policy decisions.
    • Bharat Bill Payment System (BBPS), 2019: Launched an integrated bill payment system for customer convenience.
    • Aadhar-based eKYC (2019): Streamlined customer authentication processes for financial institutions.
    • Emergency Credit Line Guarantee Scheme (ECLGS), 2020: Provided credit assistance to SMEs affected by the COVID-19 pandemic.
    • Central Bank Digital Currency (2022): RBI is actively exploring the issuance of a CBDC known as e₹ (digital Rupee).
    • Cryptocurrency Regulation (2022): RBI has maintained a consistent stance against cryptocurrencies, advocating for an outright ban on them (after China and El Salvador imposed the complete ban). In 2020, the Supreme Court of India removed the ban on cryptocurrencies imposed by RBI.
    • Payment Vision 2025 Document (2023): The goals and vision of the RBI, are categorised in the Payments Vision 2025 documents into five anchor goalposts – Integrity, Inclusion, Innovation, Institutionalisation and Internationalisation.

     

    PYQ:

    2012:

    The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following?

    1.    Banks retain their deposits with the RBI.

    2.    The RBI lends funds to the commercial banks in times of need.

    3.    The RBI advises the commercial banks on monetary matters.

    Select the correct answer using the codes given below:

    (a) 2 and 3 only

    (b) 1 and 2 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

     

    2013: Consider the following statements: ​

    1.    The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.​

    2.    Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.​

    3.    The Governor of the RBI draws his power from the RBI Act.​

    Which of the above statements are correct?​

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) 1, 2 and 3

  • Negative Leap Second: Climate Change’s Impact on Timekeeping

    Why in the news?

    • A recent publication in the science journal Nature highlights how climate change-induced melting of glaciers and ice sheets is altering the Earth’s rotation, potentially disrupting our timekeeping systems.
    • Leap seconds were added almost every year between 1972 and 1999 to adjust for Earth’s slowing rotation. But there have only been four added in the last 23 years, and the last time a leap second was added was in 2016.

    What is a Leap Second?

    • A leap second is a one-second adjustment that is occasionally applied to Coordinated Universal Time (UTC) in order to synchronize atomic time with astronomical time, particularly with the Earth’s rotation.
    • The purpose of adding or subtracting a leap second is to keep International Atomic Time (IAT) (which is extremely precise) in close alignment with astronomical time, which is based on the Earth’s rotation and is subject to slight variations.

    There are two types of leap seconds:

    1. Positive Leap Second:
      • A positive leap second is added to UTC when the Earth’s rotation slows down slightly, causing the length of a day to exceed 86,400 seconds.
      • This type of leap second is necessary to bring UTC back into alignment with the Earth’s rotational time.
      • Positive leap seconds are rare and occur less frequently than negative leap seconds.
    2. Negative Leap Second:
      • A negative leap second, also known as a deletion or removal of a second, occurs when the Earth’s rotation speeds up slightly, causing the length of a day to be less than 86,400 seconds.
      • Negative leap seconds are extremely rare and have only been proposed but never implemented. They are considered hypothetical and have not yet been needed to adjust UTC.
      • The concept of negative leap seconds is controversial and requires international agreement and coordination among timekeeping organizations.

    International Atomic Time (TAI)

     

    • TAI is a high-precision time scale based on the weighted average of atomic clocks (usually involving caesium or rubidium atoms) from various laboratories around the world.
    • It is one of the primary time scales used for scientific and technical purposes, providing a continuous and uniform time reference that is independent of the Earth’s rotation.
    • TAI is maintained since 1958 by the International Bureau of Weights and Measures (BIPM) in Paris, France.
    • Unlike UTC, which is adjusted periodically to account for the Earth’s irregular rotation, TAI is a continuous time scale that does not include any corrections for Earth’s rotation.

     

    How Climate Change causes Negative Leap Second?

    •  Glacial Melting: Accelerating melt rates in Greenland and Antarctica are redistributing weight across the planet, causing a slight deceleration in the Earth’s rotation.
    • Historical Context: Timekeepers have periodically added leap seconds to clocks worldwide to account for the Earth spinning faster than usual, with 27 instances recorded since the 1970s.
    • Planned Adjustment: The proposed “negative leap second” adjustment, scheduled for 2026, may be postponed until 2029 or later due to the recent deceleration in the Earth’s rotation.Top of Form

    Practice MCQ:

    What is a Leap Second?

    (a) It is a periodic adjustment added to International Atomic Time (TAI) to compensate for irregularities in Earth’s rotation.

    (b) It is an extra second added to Coordinated Universal Time (UTC) to synchronize atomic time with astronomical time.

    (c) It is the time lag measured by the atomic clocks in Outer Space-Time conditions.

    (d) It is a term used to describe the synchronization of atomic clocks with the oscillations of subatomic particles.

  • Paradip Port: India’s Leading Major Port in Cargo Handling

    Why in the news?

    Paradip Port in Odisha has made history by becoming India’s largest major port in terms of cargo volumes, surpassing Deendayal Port Authority in Gujarat during FY24.

    About Paradip Port

    • Paradip Port is situated at the confluence of the Mahanadi River and the Bay of Bengal in the Jagatsinghpur district of Odisha.
    • It has a natural deep-water harbor, allowing it to accommodate large vessels and handle bulk cargo efficiently.
    • The port was commissioned in 1966 to serve as a gateway for the maritime trade of eastern India.
    • Paradip Port Trust, a statutory body under the Major Port Trusts Act, 1963, manages and operates the port.

    Key Features of the Port

    • Infrastructure: It is equipped with modern facilities for handling a variety of cargo, including dry bulk, liquid bulk, containerized cargo, and general cargo.
    • Deep-Draft Port: The port has extensive berthing facilities and cargo-handling equipment capable of handling millions of tonnes of cargo annually.
    • Strategic Importance: Paradip Port serves as a vital link for the export and import trade of eastern and central India, contributing significantly to the region’s economic development.
    • Connectivity: The port is well-connected to major cities and industrial centers in Odisha and neighbouring states through road and rail networks.

    Key Feats Achieved

    • Cargo Throughput: Paradip Port achieved a record-breaking cargo throughput of 145.38 million metric tonnes (MMT) in FY2023-24, surpassing Deendayal Port.
    • Coastal Shipping Traffic: The port recorded the highest-ever coastal shipping traffic of 59.19 million metric tonnes, showcasing a growth of 1.30% over the previous year.
    • Thermal Coal Handling: Thermal coal shipping reached 43.97 million metric tonnes, marking a growth of 4.02% over the previous year.
    • Revenue Growth: Operating revenue crossed Rs 2,300 crore in FY24, reflecting a notable increase of 14.30% compared to the previous fiscal.

    Driving Factors of this Success

    • Enhanced Operational Efficiency: Mechanised coal handling plant operations were optimized, resulting in the highest handling of thermal coal at 27.12 million tonnes.
    • Productivity Improvement: Paradip Port improved berth productivity to 33,014 MT, the highest among all ports, showcasing a growth of 6.33% over the previous financial year.
    • Rake Handling and Ship Movements: The port handled 21,665 rakes and 2,710 ships during FY24, registering significant year-on-year growth in both metrics.

    Future Prospects

    • Capacity Expansion: With a current capacity of 289 million tonnes, Paradip Port is poised to exceed 300 million tonnes capacity in the next 3 years with the commissioning of the Western Dock project.
    • Strategic Location: Located near a mineral-rich hinterland, Paradip Port remains a strategic asset for India’s maritime trade and economic growth.

    PYQ:

    2017:

    What is the importance of developing Chabahar Port by India?

    (a) India’s trade with African countries will enormously increase.

    (b) India’s relations with oil-producing Arab countries will be strengthened.

    (c) India will not depend on Pakistan for access to Afghanistan and Central Asia.

    (d) Pakistan will facilitate and protect the installation of a gas pipeline between Iraq and India.

     

    Practice MCQ:

    It is situated at the confluence of the Mahanadi River and the Bay of Bengal. It has a natural deep-water harbor, allowing it to accommodate large vessels and handle bulk cargo efficiently.

    Which sea port in Odisha is being talked about by the above description?

    (a) Haldia

    (b) Gopalpur

    (c) Belikeri

    (d) Paradip

  • SEBI unveils SCORES 2.0 to Strengthen Investor Redressal

    Why in the news?

    The Securities and Exchange Board of India (SEBI) unveiled the upgraded version of the SEBI Complaint Redress System (SCORES 2.0) marking a significant advancement in the investor complaint redressal mechanism in the securities market.

    About Securities and Exchange Board of India (SEBI)

     

    • SEBI is the regulatory authority overseeing India’s securities and commodity markets.
    • Established in 1988 as a non-statutory body, SEBI was granted statutory powers with the enactment of the SEBI Act 1992 by the Indian Parliament.
    • It operates under the purview of the Ministry of Finance.
    • SEBI’s structure includes a chairman nominated by the GoI, members from the Union Finance Ministry, the Reserve Bank of India, and others.
    • Its headquarters is in Mumbai, with regional offices in Ahmedabad, Kolkata, Chennai, and Delhi.

    What is SCORES 2.0?

    • SCORES 2.0 refers to the upgraded version of the SEBI Complaint Redress System (SCORES) launched by the Securities and Exchange Board of India (SEBI).
    • SCORES is an online platform designed to facilitate the lodging and resolution of complaints by investors in the securities market.
    • Complaints can be lodged for any issues covered under the:
    1. SEBI Act, 1992
    2. Securities Contract Regulation Act, 1956
    3. Depositories Act, 1966
    4. Companies Act, 2013

    Complaints on SCORES 2.0 can be launched against:

    1. Listed companies / registrar & transfer agents
    2. Brokers / stock exchanges
    3. Depository participants / depository
    4. Mutual funds
    5. Portfolio Managers
    6. Other entities (KYC Collective investment scheme, Merchant banker, Credit rating, Foreign institutional investor etc.)

    Features of SCORES 2.0:

    1. Reduced Timelines: SCORES 2.0 implements reduced and standardized timelines for addressing investor grievances, ensuring a maximum redressal period of 21 calendar days from the date of complaint receipt.
    2. Auto-Routing and Escalation: The new version incorporates an auto-routing mechanism to swiftly direct complaints to the relevant regulated entity. Additionally, it introduces a two-tier review process, with complaints undergoing review first by the designated body and subsequently by SEBI if investors remain dissatisfied with the resolution provided.
    3. Integration with KYC Database: SCORES 2.0 is seamlessly integrated with the KYC Registration Agency database, streamlining the registration process for investors onto the platform.
    4. Enhanced Efficiency: Through features such as auto-routing, auto-escalation, and stricter monitoring protocols, SCORES 2.0 aims to enhance the efficiency and effectiveness of the investor complaint redressal process.

    Significance of SCORES 2.0

    • Improved Regulatory Oversight: By introducing stricter timelines and oversight mechanisms, SEBI aims to enhance regulatory efficiency and transparency, fostering a more accountable and responsive market ecosystem.
    • Technological Advancements: The integration of advanced technological features, such as auto-routing and KYC database linkage, reflects SEBI’s proactive approach towards harnessing digital innovations to modernize regulatory processes and services.

    PYQ:

    2013:

    The product diversification of financial institutions and insurance companies, resulting in overlapping of products and services strengthens the case for the merger of the two regulatory agencies, namely SEBI and IRDA. Justify.

     

    Practice MCQ:

    Consider the following statements about the SCORES 2.0 Platform recently launched by the Securities and Exchange Board of India (SEBI):

    1.    It is an online platform designed to facilitate the lodging and resolution of complaints by investors in the securities market.

    2.    It addresses complaints pertaining to the SEBI Act, 1992 only.

    3.    It ensures a maximum redressal period of 21 calendar days.

    How many of the above statements is/are correct?

    (a) One

    (b) Two

    (c) Three

    (d) None

  • Kallakkadal: Coastal Flooding Phenomena in Kerala

    Why in the news?

    • Coastal areas of Kerala, including Alappuzha, Kollam, and Thiruvananthapuram districts, are grappling with flooding caused by high sea waves, known as swell waves or Kallakkadal in Malayalam.
    • The recent swell surge occurred following a low-pressure system originating in the South Atlantic Ocean, leading to the formation of waves reaching heights of up to 11 meters.

    What is Kallakkadal?

    1. Origin and Meaning:
    • Kallakkadal refers to coastal flooding during the (April-May) pre-monsoon season.
    • It is caused by ocean swell waves on the southwest coast of India.
    • The term “Kallakkadal” originates from Malayalam, combining “Kallan” (thief) and “Kadal” (sea), denoting the sea’s unexpected intrusion akin to a thief.
    • In 2012, the term was formally approved by the UNESCO (United Nations Educational, Scientific and Cultural Organization).
    1. Causes:
    • These waves stem from distant storms, such as hurricanes, generating significant energy transfer from the atmosphere to the water.
    • Kallakkadal typically results from strong winds in the southern Indian Ocean, generating ocean swells that travel northward towards the Kerala coast.

    Features of Kallakkadal

    • This phenomenon occurs mostly during pre-monsoon season and sometimes during post monsoon.
    • It continues for a few days.
    • It inundates the low lying coasts.
    • Initially sea recedes before the surge.
    • During high tide the run-up, water level can reach as much as 3–4 m above Maximum Water Level (MWL).

    How is it distinct from Tsunami?

    • Nature of Phenomenon: Kallakkadal, though often confused with tsunamis, arises from distant storm-generated waves, contrasting with tsunamis triggered by underwater disturbances, typically seismic activities.
    • Clarification: Understanding this distinction is crucial for implementing effective early warning systems and mitigating the impact of coastal hazards.

    PYQ:

    2017: At one of the places in India, if you stand on the seashore and watch the sea, you will find that the sea water recedes from the shore line a few kilometres and comes back to the shore, twice a day, and you can actually walk on the sea floor when the water recedes. This unique phenomenon is seen at-

    (a) Bhavnagar

    (b) Bheemunipatnam

    (c) Chandipur

    (d) Nagapattinam

     

    Practice MCQ:

    The Coastal areas of Kerala recently witnessed the Oceanic Swell Waves locally known as Kallakkadal. In this regard consider the following statements:

    1.    Kallakkadal typically occurs during the spring season (March-April).

    2.    These waves stem from distant storms in the southern Indian Ocean.

    Which of the given statements is/are NOT correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2

  • What is Zero FIR?

    Why in the news?

    • The Hyderabad Police have initiated a zero FIR case against former minister for alleged derogatory remarks against Telangana CM.

    First Information Report (FIR)

    • An FIR is a written document prepared by the police upon receiving information about a cognisable offence.
    • It is when an officer can arrest a suspect without a court’s warrant if/she has “reason to believe” that the person committed the offence and arrest is necessary based on certain factors.
    • It serves as the first step towards initiating the investigation process and subsequent police actions.
    • Section 154(1) of the Criminal Procedure Code (CrPC) empowers the police to register an FIR for cognizable offences.
    • Section 166A of the Indian Penal Code (IPC) provides punishment for public servants failing to record information related to a cognizable offence, with imprisonment of up to two years and a fine.

    What is Zero FIR?

    • Provision and Purpose: Zero FIR allows any police station to register an FIR for a cognisable offence without assigning a regular FIR number initially.
    • No diary: Whereas FIRs have serial numbers assigned to them, zero FIRs are assigned the number ‘0’. Hence the name.

    Features of a Zero FIR:

    1. Swift Action: The relevant police station subsequently registers a fresh FIR and commences the investigation.
    2. Focus on Victims: It is designed to expedite complaint lodging, particularly for serious crimes involving women and children, without the need to approach multiple police stations.
    3. Preserving Evidence: Early registration helps prevent the loss or tampering of crucial evidence and witnesses.
    4. Transferred Jurisdiction: The Zero FIR is later transferred to the relevant police station where the offence occurred or where the investigation should be conducted.

    How does it work?

    • After a police station registers a zero FIR, it has to transfer the complaint to a police station that has the jurisdiction to investigate the alleged offence.
    • Once a zero FIR is transferred, the police station with the appropriate jurisdiction assigns it a serial number, thereby converting it into a regular FIR.

    Legal Provisions for Zero FIR

    The provision of Zero FIR finds support in various judgments and recommendations:

    1. Satvinder Kaur vs. State (1999): The Delhi High Court held that a woman has the right to lodge her complaint from any place other than where the incident occurred.
    2. Justice Verma Committee (2012): The introduction of Zero FIR was based on the recommendation of the Justice Verma Committee, which was formed in response to the 2012 Nirbhaya gangrape case.
    3. Lalita Kumari vs. Govt. of UP (2014): The Supreme Court ruled that registration of an FIR is mandatory when information discloses the commission of a cognizable offence.

    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

     

    Practice MCQ:

    Regarding the Zero FIR, consider the following statements:

    1. Zero FIR allows any police station to register an FIR for a cognizable offence without assigning a regular FIR number initially.

    2. Whereas FIRs have serial numbers assigned to them, zero FIRs are assigned the number ‘0’.

    Which of the given statements is/are correct?

    (a) Only 1

    (b) Only 2

    (c) Both 1 and 2

    (d) Neither 1 nor 2
  • [2 April 2024] The Hindu Op-ed: The PMLA — a law that has lost its way

    [2 April 2024] The Hindu Op-ed: The PMLA — a law that has lost its way

    PYQ Relevance:Mains: 

    Q) Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (UPSC CSE/2021) 

    Q) Analyze the complexity and intensity of terrorism, its causes, linkages and obnoxious nexus. Also suggest measures required to be taken to eradicate the menace of terrorism. (UPSC CSE/2021) 

    Q) Money laundering poses a serious security threat to a country’s economic sovereignty. What is its significance for India and what steps are required to be taken to control this menace?  (UPSC CSE/2013) 

    Note4Students: 

    Prelims: Polity; Prevention of Money Laundering Act  of 2002;

    Mains: Polity; Internal Security; Prevention of Money Laundering Act  of 2002;

    Mentor comments: The Enormous volume of black money generated through International Drug Trafficking poses a grave threat to our Indian economy as well as many other countries too. We all are awared that the black money is generated through the flourishing of the drug trade and then it is  integrated with the legitimate and domestic economy that can destabilize the world and endanger the integrity and sovereignty of various Nations. Hence, today we are going to discuss some major ongoing issue which is aligned with same context – the issue with the Prevention of Money Laundering Act  of 2002.

    Let’s learn. 

    —

    Why in the News?

    The Prevention of Money Laundering Act (2002),  includes a large number of offenses in its schedule that have nothing to do with the original purpose of this law. So, there is an urgent need to have an effective law with the rising of newer challenges in Drug Money Laundering offenses.

    The Background of the Law:

    • Since the mid-1980s, there has been global concern over the proceeds of criminal activities such as drug trafficking being ‘laundered’ or used in financing terrorism. 
    • The UN Convention against Illicit Traffic in Narcotic Drugs and Psychotropic Substances adopted in the Vienna Convention (1988) was the first treaty that called upon nations to adopt domestic laws to combat drug trafficking. As part of these laws, countries were asked to prohibit the conversion or transfer of property gained through dealing in narcotics to conceal its illicit origin. 
    • The Financial Action Task Force (FATF) was established at the G-7 Summit in Paris in 1989 in response to mounting concern over money laundering. The Task Force made recommendations from time to time to strengthen laws on the subject. 
    • The UN Convention against Transnational Organized Crime of 2000 (Palermo Convention) also advocated legislative and other measures to combat organized crime, and specifically called for ‘criminalizing the laundering of proceeds of crime’

    About the Prevention of Money Laundering Act (PMLA), 2002:

    • Enactment of PMLA in India:
      • Article 253: This gave the Union Parliament the exclusive power to make laws for any part of India’s territory to implement any treaty, agreement or convention involving one or more countries.
      • Seventh Schedule: Item 13 (Communication which is subject to provisions in List I and III) in the Union list of the Seventh Schedule of the Constitution is specific on this point. 
    • It was enacted in January 2003 and seeks to combat money laundering in India under three major domains:
      • Preventing and controlling Money Laundering
      • Confiscating and seizing the property obtained from the laundered money
      • Issues that are directly connected with Money Laundering in India.
    • Section 3 of the PMLA defines the offense of money laundering as whosoever directly or indirectly attempts to indulge or knowingly assists or knowingly is a party or is actually involved in any process or activity connected with the proceeds of crime and projecting it as untainted property shall be guilty of the offense of money-laundering.
    • The Act was amended by the Prevention of Money Laundering (Amendment) Act, 2009 and by the Prevention of Money Laundering (Amendment) Act, 2012. Recently, the PMLA was amended through the Finance Act, 2015, Finance Act, 2018 and Finance Act, 2019.

    Why PMLA has lost its way? 

    • Draconian Nature: The provisions contained are now being used in other scheduled offenses too without mitigating their rigor. 
    • Redundant Law: The various amendments made in this Act at different times bloated the schedule offenses which now contain such offenses that are either ordinary offenses listed in the IPC or for which there are special laws in force.
      • For Example, the Prevention of Corruption Act, 1988 which is aimed at curbing corruption among public servants. This Act was added to the schedule of offenses in 2009. The PMLA now applies with all its rigor to public servants also. Thus, a public servant charged with corruption and a hard-core drug trafficker are treated alike.
    • Non-aligned with Fundamental Principles: A very disturbing thing about the PMLA is that an accused under this law is presumed to be guilty until proven innocent. A fundamental principle of Anglo-Saxon jurisprudence is that a person is presumed innocent until proven guilty. 
    • Stringent Bail Provisions: An accused will be denied bail by the entire hierarchy of courts because the bail provision contained in section 45 of the PMLA says that a judge can give bail only when he is satisfied that the accused is innocent. 
    • Legislative vs. Judiciary Nexus: The bail provision is invested with a lot of political significance in present-day India. The Act originally aimed to curb the laundering of black money and to save the economy from being destabilized. But the less serious offenses are also under purview of PMLA. The learned judges nearly said that the inclusion of a particular offense in the schedule comes within the domain of the legislative policy.
    Judicial Stand on the Bail Provisions:

    Gudikanti Narasimhulu And Ors vs Public Prosecutor (1978): The judicial perspective on bail was laid out by Justice V.R. Krishna Iyer (Andhra Pradesh HC) where it said that “Personal liberty is deprived when bail is refused, which is too precious value of our constitutional system recognized under Article 21”.

    Nikesh Tarachand Shah vs Union of India (2018): The PMLA Act (Section 45) was held unconstitutional by a two-judge Bench of the Supreme Court of India as it was violating Article 14 and Article 21.  

    Vijay Madanlal Choudhary vs Union of India (2022): Parliament, with great alacrity, restored this provision with certain amendments which was upheld by a three-judge Bench headed by Justice A.M. Khanwilkar in 2022. The top court held that this provision is reasonable and has a direct nexus with the purposes and objects of the PMLA Act. 

  • Solar surge: Moving away from imported solar panels

    Why in the news? 

    The government is finally bringing into effect the policy of an Approved list of Models and Manufacturers (ALMM) that will discourage solar power project developers from relying on imported panels. 

    About Approved Models and Manufacturers of Solar Photovoltaic Modules Order, 2019:

    • Aim: To boost domestic manufacturing of solar panels by registering only those made with domestically manufactured cells, wafers, and polysilicon.
    • Compulsory Registration: The order mandates compulsory registration for solar PV module and cell manufacturers, ensuring they meet certain quality and production standards.
    • Lists: LIST-I for solar PV modules and LIST-II for solar PV cells.
      • Only listed models and manufacturers in these lists are considered approved for use in various government projects and schemes.
    • Eligibility Criteria: To be included in the lists, manufacturers must undergo inspections and meet specific criteria set by the National Institute of Solar Energy (NISE) to ensure the products are genuinely manufactured and not imported.
    • This order ensures the reliability of solar PV products used in installations, promotes domestic manufacturing, and aligns with the government’s initiatives for renewable energy adoption and energy security.

    Efforts made by the Government to promote domestic Solar Manufacturing:

    • Import Restrictions: The creation of the Approved Models and Manufacturers list was aimed at restricting imports from China, which dominates a significant portion of the global solar supply market.
    • Ambitious Renewable Energy Targets: India aims to source about 500 GW of its electricity from non-fossil fuel sources by 2030, with at least 280 GW coming from solar power. This necessitates adding at least 40 GW of solar capacity annually until 2030. So there is need to focus on indegenous solar project

    Challenges ahead:

    • Unrealistic Targets: Despite ambitious targets, India’s solar capacity additions have been relatively low in recent years, attributed in part to the COVID-19 pandemic. The country aims to ramp up installations to between 25 GW and 40 GW annually.
    • Reliance on Imports: A significant fraction of India’s solar installations is met by imports, which affects domestic panel manufacturers who must pay for government certification but lose orders to cheaper Chinese panels. For example surge in Solar panel import in  FY 24 around $1,136.28 million  from FY23 imports $943.53 million

    Conclusion: India’s ALMM policy aims to boost domestic solar manufacturing, aligning with ambitious renewable energy targets. Address challenges like meeting targets and reducing reliance on imports through strategic planning and support.

    Mains PYQ 

    Q Describe the benefits of deriving electric energy from sunlight in contrast to conventional energy generation. What are the initiatives offered by our government for this purpose? (UPSC IAS/2020)

    https://economictimes.indiatimes.com/industry/renewables/how-india-became-a-frontrunner-in-the-global-renewable-energy-market/articleshow/100271905.cms?from=mdr

    https://mnre.gov.in/approved-list-of-models-and-manufacturers-almm/

    https://pib.gov.in/PressReleasePage.aspx?PRID=1944075

    https://energy.economictimes.indiatimes.com/news/renewable/indias-solar-panel-imports-set-to-remain-higher-in-fy24/106217488#:~:text=During%20the%20initial%20six%20months,million%2C%20according%20to%20Eninrac%20Consulting