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  • T + 0 Settlement System kick starts today

    Why in the news?

    India’s stock market will begin the with a ‘beta version’ of T+0 settlement system (same day settlement) from today. This is the world’s fastest stock settlement system.

    About T+0 Settlement Cycle

    • SEBI has planned to introduce the shorter cycle in two phases:
    1. T+0 Settlement Details: In Phase 1, trades executed until 1:30 PM will be settled by 4:30 PM on the same day.
    2. Instant Settlement Mechanics: Phase 2 envisages immediate trade-by-trade settlement, with trading continuing until 3:30 PM.

    Features of the T+0 Settlement Mechanism

    • Early Pay-In Trend: A large percentage of retail investors already make early pay-ins of funds and securities, indicating readiness for instant settlement.
    • Instant Receipt Benefits: The mechanism enables instant receipt of funds and securities, reducing settlement shortages and enhancing investor control.
    • Investor Protection: Direct crediting of funds and securities into investors’ accounts, especially for UPI clients, strengthens investor protection.

    Settlement Cycle: A Quick History  

     

    • SEBI shortened the settlement cycle from T+5 to T+3 in 2002, and then to T+2 in 2003.
    • The T+1 cycle was introduced in 2021 and fully implemented by January 2023.
    • In T+1, the settlement of funds and securities occurs on the next day after the trade.

    Scope and Implementation of T+0

    • Initially, the T+0 settlement will be available for the top 500 listed equity shares based on market capitalization, implemented in three tranches.
    • The same surveillance measures applicable in the T+1 cycle will apply to the T+0 cycle.
    • Trade-for-trade settlement securities will NOT be eligible for T+0.

    Rationale behind T+O Cycle

    • Market Growth and Efficiency: With the significant growth in market volumes and participants, SEBI aims to enhance market efficiency and safety, especially for retail investors.
    • Technological Advancements: The evolution of payment systems like UPI and the sophistication of market infrastructure support the feasibility of shorter settlement cycles.
    • Investor Attraction: Faster transactions, reliability, and low costs are key factors that attract investors, making Indian securities a more appealing asset class.

    Benefits of the New Mechanism

    • Flexibility for Clients: The new mechanism offers faster payouts of funds to sellers and securities to buyers, providing greater flexibility and control.
    • Market Ecosystem Advantages: The faster settlement cycle is expected to enhance the operational efficiency of the securities market, benefiting the entire ecosystem.

     

    PYQ:

    2017: The term ‘Digital Single Market Strategy’ seen in the news refers to

    a)    ASEAN

    b)    BRICS

    c)    EU

    d)    G20

     

    Practice MCQ:

    With reference to the T+0 Settlement Cycle, consider the following statements:

    1.    Trades executed until 1:30 PM will be settled by 4:30 PM on the same day.

    2.    Trade-for-trade settlement securities will also be eligible for T+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

  • Solar and Heliospheric Observatory (SOHO) discovers 5000th Comet

    Why in the news?

    A Czech citizen has spotted a comet in an image from the Solar and Heliospheric Observatory (SOHO) spacecraft, which has now been confirmed to be the 5,000th comet discovered using SOHO data.

    Solar and Heliospheric Observatory (SOHO)

    • The SOHO is a spacecraft jointly operated by the European Space Agency (ESA) and NASA.
    • Launched in December 1995, its primary mission is to study the Sun, particularly its outer atmosphere, known as the corona, and the solar wind.
    • SOHO observes the Sun in various wavelengths of light, enabling scientists to study phenomena such as sunspots, solar flares, and coronal mass ejections.
    • SOHO orbits the Sun at Lagrange Point L1, about 1.5 million kilometers (nearly 1 million miles) from Earth, providing an uninterrupted view of the Sun.
    • Its observations have led to discoveries such as-
    1. Identifying the source regions of solar wind,
    2. Tracking solar eruptions, and
    3. Monitoring changes in the Sun’s activity over its 11-year solar cycle.

     

    What are Lagrange Points?

    • Lagrange Points are named after the French mathematician Joseph-Louis Lagrange who discovered them in 1772.
    • They are specific points in space where the gravitational forces of two large bodies, such as the Earth and the Sun, or the Earth and the Moon, balance the centrifugal force felt by a smaller body.
    • These points are stable locations where objects can maintain their relative positions concerning the larger bodies, without drifting away or falling towards them.

    There are five Lagrange Points, denoted as L1, L2, L3, L4, and L5:

    1. L1: Located on the line connecting the two large bodies and closer to the smaller body, L1 is particularly useful for space observatories like the Solar and Heliospheric Observatory (SOHO) because it provides an unobstructed view of the Sun from Earth’s perspective.
    2. L2: Situated on the opposite side of the smaller body from the larger one, L2 is an excellent location for deep space observatories such as the James Webb Space Telescope (JWST) because it remains relatively shielded from solar interference.
    3. L3: Located on the line connecting the two large bodies but on the opposite side of the larger body from the smaller one, L3 is less stable and less frequently used than the other Lagrange Points.
    4. L4 and L5: These points form equilateral triangles with the two large bodies, with the smaller body at the third vertex. L4 precedes the smaller body in its orbit, while L5 follows it. These points are stable and have been found to accumulate natural objects, such as asteroids, known as Trojan asteroids.

     

    PYQ:

    2013: Consider the following phenomena:

    1. Size of the sun at dusk

    2. Colure of the sun at dawn

    3. Moon being visible at dawn

    4. Twinkle of stars in the sky

    5. Polestar being visible in the sky

    Which of the above are optical illusions?

    a)    1, 2 and 3

    b)    3, 4 and 5

    c)    1, 2 and 4

    d)    2, 3 and 5

     

    Practice MCQ:

    Regarding the Solar and Heliospheric Observatory (SOHO), consider the following statement:

    1.    SOHO spacecraft was launched in December 1995.

    2.    It is jointly operated by the European Space Agency (ESA) and NASA.

    3.    It orbits the Earth in sun-synchronous orbit.

    How many of the above statements is/are correct?

    a)    One

    b)    Two

    c)    Three

    d)    None

  • Artform in news: Mohiniyattam Danceform

    Why in the news?

    The Kerala Kalamandalam, a deemed university for arts and culture, has unanimously lifted gender restrictions allowing boys for learning Mohiniyattam, a classical dance form.

    About Mohiniyattam

    Description
    Name Meaning Mohini – female enchantress avatar of Vishnu;

    Aattam – rhythmic motion or dance (Malayalam)
    Roots Natya Shastra, ancient Hindu Sanskrit text on performance arts
    Style Lasya Style – delicate, eros-filled, and feminine
    Performers Traditionally women, but men also perform in contemporary times
    Music Includes Carnatic music, singing, and enactment of plays through dance
    Language Manipravalam : a Malayalam-Sanskrit hybrid
    Posture Parted feet, gentle swaying of body, soft footwork synchronized with music beats
    Gestures Follow the classical text of Hastha Lakshanadeepika with elaborate mudras (hand gestures)
    Costumes Plain white or off-white sarees with golden brocade, pleated sheets for freedom of movement, adorned with jewellery
    Accessories Jewellery on fingers, wrists, neck, and ears, ankle bells (for female performers), dhotis and similar accessories (for male performers)
    Makeup Natural with brilliant red lips, tikka (Gobi) on forehead, lined eyes
    Music Various rhythms and compositions in Manipravalam, accompanied by instruments like Mridangam, Idakka, flute, Veena, and Kuzhitalam
    Ragas Rendered in the Sopana Style, a slow melodic style rooted in the Natya Shastra

     

     

    PYQ:

    2012: How do you distinguish between Kuchipudi and Bharatanatyam dances?

    1. Dancers occasionally speaking dialogues is found in Kuchipudi dance but not in Bharatanatyam.
    2. Dancing on the brass plate by keeping the feet on its edges is a feature of Bharatanatyam but Kuchipudi dance does not have such a form of movements.

    Which of the statements given above is/are correct?

    1. 1 only
    2. 2 only
    3. Both 1 and 2
    4. Neither 1 nor 2

     

    Practice MCQ:

    Which of the following statements about Mohiniyattam is not true?

    1. Mohiniyattam derives its name from “Mohini,” the female enchantress avatar of Vishnu, and “Aattam,” meaning rhythmic motion or dance in Malayalam.
    2. Its roots can be traced back to the Natya Shastra, an ancient Hindu Sanskrit text on performance arts.
    3. Mohiniyattam is characterized by the Tandava style, known for its vigorous movements.
    4. Performances of Mohiniyattam typically include enactment of plays through dance, accompanied by singing and Carnatic music.

  • 50,000-year-old Magnetic Fossils found in Bay of Bengal

    What is the news?

    Scientists from the CSIR-National Institute of Oceanography, Goa have found in the Bay of Bengal a 50,000-year-old sediment containing giant magnetofossils, shedding light on ancient geological conditions.

    What are Magnetofossils?

    • Magnetofossils are fossilized magnetic particles created by magnetotactic bacteria, aiding scientists in understanding past environmental conditions.
    • Described initially in the 1960s and 1970s, magnetotactic bacteria utilize iron-rich minerals to navigate the Earth’s magnetic field, leaving behind distinctive fossil remnants.
    • These unique creatures were first described in 1963, by Salvatore Bellini, an Italian doctor and then again in 1975 by Richard Blakemore of the Woods Hole Oceanographic Institution, Woods Hole, Massachusetts.
    • These organisms were believed to follow the magnetic field to reach places that had optimal oxygen concentration.
    • Using an electron microscope, Blakemore found the bacteria contained “novel structured particles, rich in iron” in small sacs that essentially worked as a compass.
    • These magnetotactic bacteria create tiny crystals made of the iron-rich minerals magnetite or greigite, aiding them in navigating changing oxygen levels in the water body they reside in.

    Special Attributes of Bay of Bengal Sediment

    • Previous studies on magnetofossils often ascertained their origins to be hyperthermal vents, comet impacts, changes in oceanic ventilation, weathering or the presence of oxygen-poor regions.
    • Sediments deposited at the core site originate from the Godavari, Krishna, and Penner Rivers, highlighted on the map.

    Findings of the Study

    • Scientific Approach: In the study, combined magnetic analyses and electron microscopy to study the sediment sample.
    • Sediment Characteristics: The three-metre-long sediment core from the southwestern Bay of Bengal consisted mainly of “pale green silty clays,” they wrote in their paper. They also reported finding abundant benthic and planktic foraminifera — single-celled organisms with shells found near the sea bed and free-floating in water.
    • Microscopic Revelations: High-resolution transmission electron microscopy revealed the fossil to be in the shape of needles, spindles, bullets, and spearheads.
    • Environmental Insights: Earlier, studies of sediments suggested that nearly 29,000 to 11,700 years ago, during the last Glacial Maximum-Holocene period, the northeast and southwest monsoon strengthened and resulted in significant weathering and sedimentation.

     

    PYQ:

    Consider the following kinds of organisms:

    1. Copepods
    2. Cyanobacteria
    3. Diatoms
    4. Foraminifera

    Which of the above are primary producers in the food chains of oceans?

    1. 1 and 2
    2. 2 and 3
    3. 3 and 4
    4. 1 and 4

    Practice MCQ:

    Which of the following statements is correct about the ‘Magnetofossils’?

    1. They are fossilized magnetic particles created by magnetotactic bacteria.
    2. They follow the magnetic field to reach places that have optimal oxygen concentration.
    3. They are tiny crystals made of the iron-rich minerals magnetite or greigite.
    4. All of these.

  • Monuments of National Importance (MNI) and their Listing/De-Listing

    Why in the news?

    • The Archaeological Survey of India (ASI) has decided to remove 18 “centrally protected monuments” from its list of Monuments of National Importance (MNI), citing a lack of national significance.
    • ASI currently has 3,693 monuments under its purview, which will fall to 3,675 once the current delisting exercise is completed in the next few weeks.

    What are Monuments of National Importance (MNI)?

    • MNI in India are legally protected under the Ancient Monuments and Archaeological Sites and Remains (AMASR) Act, 1958.
    • This act empowers the Centre to declare certain monuments as MNIs through official notifications published in the Gazette of India.
    • It mandates the protection, preservation, and maintenance of MNIs to ensure their integrity and authenticity for future generations.
    • The Act empowers the central government to appoint authorities, such as the Archaeological Survey of India (ASI), to oversee the protection and management of MNIs.

    Key Features of MNI Protection

    • Prohibited Activities: The Act prohibits certain activities within the precincts of MNIs, such as construction, excavation, and removal of artifacts, without prior permission from the relevant authorities.
    • Designated Zones: Within a 100-meter radius of the monument, construction activities are prohibited to prevent encroachment and damage. An additional 200-meter radius (100 + 200 meters) constitutes a regulated area where construction is subject to specific regulations to maintain the monument’s integrity and surroundings.
    • Maintenance of Records: The Act requires the maintenance of records and registers documenting the history, conservation, and management of MNIs.

    Understanding Monument Delisting

    • Once delisted, monuments are no longer subject to ASI conservation efforts, allowing for regular construction activities in the vicinity.
    • Section 35 of the AMASR Act allows for the delisting of monuments deemed to have lost national importance.
    • The delisting process involves official notifications, with a two-month public feedback period to address objections or suggestions.

     

    PYQ:

    2015: With reference to art and archaeological history of India, which one among the following was made earliest?

    1. Lingaraja Temple at Bhubaneswar
    2. Rock-cut Elephant at Dhauli
    3. Rock-cut Monuments at Mahabalipuram
    4. Varaha Image at Udayagiri

     

    Practice MCQ:

    The Archaeological Survey of India (ASI) has decided to remove 18 “centrally protected monuments”. This essentially implies:

    1. The site will no longer be conserved, protected, and maintained by the ASI.
    2. Activities related to construction and urbanisation in the area can be carried out in a regular manner.

    Which of the given statements is/are correct?

    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2

  • Captive Elephant Transfer Rules, 2024

    What is the news?

    • The Union Environment Ministry has notified a set of rules called the Captive Elephant (Transfer or Transport) Rules, 2024.
    • Elephants, classified as Schedule I species under the Wildlife Protection Act, of 1972 enjoy special protection, but certain provisions allow for their translocation under specific circumstances.

    Existing Regulations on Elephant Transfer

    • Legal Framework: The Wildlife Protection Act, of 1972 prohibits the capture or trade of elephants, whether wild or captive, without appropriate authorization.
    • Special Provisions: While strict regulations govern elephant transfer, exceptions exist for educational, scientific, or religious purposes, subject to approval from wildlife authorities.
    • Amendment: The Wildlife (Protection) Amendment Bill, 2022 expanded the scope of elephant transfers, raising concerns among activists about potential exploitation and illegal trafficking.

    Captive Elephant Transfer Rules, 2024: Key Highlights

    1. Circumstances for the Transfer of Captive Elephants:

    Transfer may be warranted under the following circumstances:

    • Incapability of the owner: When the owner is incapable of adequately ensuring the elephant’s welfare.
    • Superior Care: If it is determined that the elephant will receive superior care in the new environment compared to its current situation.
    • Improvised maintenance: The Chief Wildlife Warden may find it necessary to transfer the elephant for its improved maintenance based on the specific circumstances of the case.
    1. Transfer Within the State:
    • Veterinarian Check: Prior to any transfer within the state, a veterinarian must confirm the elephant’s health status.
    • New habitat verification: The suitability of both the current and prospective habitats must be assessed by the Deputy Conservator of Forests.
    • Chief Wildlife Warden’s Role: He/She holds the authority to approve or reject the transfer based on these evaluations.
    1. Transfer Outside the State:

    Similar conditions apply for transferring elephants beyond state boundaries in addition to-

    • Genetic Profile Registration: Additionally, the elephant’s genetic profile must be registered with the Ministry of Environment, Forest and Climate Change (MoEF&CC) before the transfer.
    1. Requirements for Elephant Transfer:
    • Accompanying the Master: The elephant must be accompanied by a mahout and an elephant assistant. Adequate provisions for feeding and watering must be arranged during transport.
    • Fitness Certificate: A health certificate issued by a veterinary practitioner confirming fitness for transport is obligatory.
    • Quarantine Mandate: Transport should commence after the completion of any required quarantine period for contagious diseases.
    • Refreshment: Tranquillisers or sedatives: This may be administered to manage nervous or temperamental elephants as prescribed by the veterinary practitioner.

     

    PYQ:

    2020: With reference to Indian elephants, consider the following statements:

    1. The leader of an elephant group is a female.
    2. The maximum gestation period can be 22 months.
    3. An elephant can normally go on calving till the age of 40 years only.
    4. Among the States in India, the highest elephant population is in Kerala.

    Which of the statements given above is/are correct?

    1. 1 and 2 only
    2. 2 and 4 only
    3. 3 only
    4. 1, 3 and 4 only

     

    Practice MCQ:

    With reference to the Captive Elephant Transfer Rules, 2024 recently notified by the Ministry of Environment, Forest and Climate Change of India (MoEFCC), consider the following statements:

    1. For transferring outside of a state, an elephant’s genetic profile must be registered with the Environment Ministry before the transfer.
    2. The authority to approve or reject the transfer vests with the Principal Chief Conservator of Forests.

    Which of the given statements is/are correct?

    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2

  • 900-year-old Chalukyan Inscription discovered  

    What is the news?

    A 900-year-old Kannada inscription from the Kalyana Chalukya dynasty has been discovered in a state of neglect at Gangapuram, a temple town in Jadcherla mandal, Mahabubnagar, Telangana.

    • The inscription dates back to June 8, 1134 CE (Friday) and was issued by the Customs Officers of Tailapa-III, son of Kalyana Chalukya Emperor ‘Bhulokamalla’ Someswara-III.
    • It records the remission of toll taxes for the perpetual lamp and incense of God Somanatha.

    Who were the Chalukyas?

    Origin and Expansion:

    • The Chalukyas emerged as a prominent dynasty in the 6th century CE, with their capital at Badami in present-day Karnataka.
    • Pulakeshin I, the founder of the dynasty, ascended to the throne around 543 CE and expanded the empire by defeating the Kadambas, Mauryas, and other neighboring kingdoms.
    • Pulakeshin II, one of the most illustrious rulers of the Chalukyan Empire, ascended the throne in 610 CE and significantly expanded its territory through military conquests and diplomatic alliances.
    • The empire reached its zenith under Pulakeshin II, extending its influence over large parts of Southern and Central India, including present-day Karnataka, Maharashtra, Gujarat, and Andhra Pradesh.

    Dynastic Divisions:

    • The Chalukyan Empire witnessed the emergence of multiple dynastic branches, including the Badami Chalukyas, Western Chalukyas (also known as the Later Chalukyas), and Eastern Chalukyas (also known as the Chalukyas of Vengi).
    1. Badami Chalukyas ruled from their capital at Badami and were known for their contributions to art, architecture, and literature.
    2. Western Chalukyas, based in Kalyani (present-day Basavakalyan), continued the legacy of their predecessors and established their dominance over parts of present-day Karnataka and Maharashtra.
    3. Eastern Chalukyas, based in Vengi (present-day Andhra Pradesh), carved out their own kingdom and played a crucial role in the political dynamics of South India.

    Religion and Faith:

    • The Chalukyas were patrons of art, literature, and architecture, fostering a rich cultural environment within their empire.
    • They promoted Hinduism as the dominant religion and contributed to the construction of numerous temples dedicated to Hindu deities, including the famous Virupaksha Temple at Pattadakal.
    • The Chalukyas also patronized Jainism and Buddhism, leading to the construction of Jain caves and monasteries in regions under their control.

    Decline and Legacy:

    • The Chalukyan Empire faced internal conflicts, dynastic rivalries, and external invasions, leading to its gradual decline from the 12th century onwards.
    • The defeat of Vikramaditya VI by the Cholas in the 12th century marked the end of the Western Chalukya dynasty, while the Eastern Chalukyas continued to rule in Vengi until the 13th century.

    Administration:

    • The empire was divided into administrative units known as ‘Rashtras or Mandalas’, each governed by a local administrative officer known as a ‘Mandaleshwara’.
    • At the higher levels of administration, provincial governors known as ‘Rashtrakutas’ were appointed to oversee multiple mandalas and report directly to the king.
    • Revenue administration played a crucial role in sustaining the empire, with land revenue being the primary source of income. The empire maintained a sophisticated system of land measurement and taxation to ensure a steady flow of revenue.

    Arts and Culture:

    • Sculpture flourished under the patronage of the Chalukya rulers, with exquisite examples of stone carvings adorning temple complexes and royal monuments.
    • The famous Nataraja sculpture at Pattadakal, depicting Lord Shiva in his cosmic dance pose, is a masterpiece of Chalukyan art.
    • Pampa, a court poet of the Chalukyas, composed the epic poem “Vikramarjuna Vijaya” (also known as “Pampa Bharata” or “Pampa Ramayana”) in Kannada, narrating the story of the Mahabharata from the perspective of Arjuna.
    • The Chalukyan era witnessed the development of classical dance forms like Bharatanatyam, as evidenced by sculptures found in temples such as the Mallikarjuna Temple at Pattadakal.
    • Ranna, a prominent Kannada poet of the Chalukyan period, composed the “Ajita Tirthankara Purana,” an epic poem celebrating the lives of the Jain Tirthankaras.

    Architecture:

    • Chalukyan temples are architectural marvels, characterized by their distinctive Dravidian and Nagara styles collectively called the ‘Gadag Style’ .
    • The Virupaksha Temple at Pattadakal, built by the Chalukyan king Vikramaditya II in the 8th century, is a UNESCO World Heritage Site renowned for its intricate carvings and towering gopurams (entrance gateways).
    • Similarly, the Durga Temple at Aihole, dating back to the 7th century, showcases exemplary Chalukyan architecture with its ornate pillars and sculpted panels depicting Hindu deities and mythological scenes.

     

    PYQ:

    2019: Building ‘Kalyaana Mandapas’ was a notable feature in the temple construction in the kingdom of

    1. Chalukya
    2. Chandela
    3. Rashtrakuta
    4. Vijayanagara

     

    Practice MCQ:

    The ‘Gadag Style’ of Temple Architecture is associated with which of the following dynasties?

    1. Chalukya
    2. Kakatiya
    3. Rashtrakuta
    4. Kadamba

  • RBI Clampdown on Lenders could moderate Credit Growth in 2024-25

    What is the news?

    The Reserve Bank of India (RBI) has undertaken rigorous regulatory actions to address lenders’ over-exuberance, enhance compliance culture, and protect customers.

    RBI’s Regulatory Actions: An Overview

     

    • Recent Examples: Recent regulatory moves by the RBI, such as restraining lending by IIFL Finance and JM Financial Products, and implementing restrictions on customer onboarding at Paytm Payments Bank, mark a departure from historically nominal financial penalties.
    • Implications: S&P Global Ratings predicts that these actions will escalate the cost of capital and moderate loan growth in the fiscal year 2024-25, projecting a decrease from 16% to 14%.

     

    How RBI regulates Lenders in India?

    1. Licensing and Regulation:
      • The Banking Regulation Act, 1949 empowers RBI to grant licenses to banks and regulate their operations.
      • Non-Banking Financial Companies (NBFCs) are regulated under the Reserve Bank of India Act, 1934 and governed by guidelines issued by RBI under Section 45-IA of the RBI Act.
    2. Prudential Regulations:
      • RBI issues prudential regulations under various Acts, including the Banking Regulation Act, 1949 and the RBI Act, 1934.
      • These regulations include guidelines on capital adequacy (Basel III norms), asset classification, provisioning norms, liquidity management, exposure limits, and risk management practices.
      • Non-compliance with these regulations may attract penalties or other enforcement actions under the relevant Acts.
    3. Supervision and Monitoring:
      • RBI conducts supervision and monitoring of banks and NBFCs under Section 35A of the Banking Regulation Act, 1949 and Section 45L of the RBI Act, 1934.
      • It has the authority to conduct on-site inspections, off-site surveillance, and review financial reports to assess compliance with regulatory requirements.
      • RBI may issue directives, guidelines, or corrective actions under Section 35A and Section 45L to address deficiencies identified during supervision.
    4. Policy Framework:
      • Monetary policy frameworks are governed by the RBI Act, 1934 and the Reserve Bank of India (RBI) Act, 1934, which empower RBI to formulate and implement monetary policies.
      • RBI’s Monetary Policy Committee (MPC) sets key policy rates such as the repo rate, reverse repo rate, and statutory liquidity ratio (SLR) to regulate credit flow, inflation, and overall economic conditions.
    5. Consumer Protection:
      • RBI issues guidelines under the Banking Regulation Act, 1949 and the RBI Act, 1934 to ensure fair practices and consumer protection in banking and NBFC operations.
      • The Banking Ombudsman Scheme, 2006 provides a mechanism for redressal of customer grievances against banks.
      • Violations of consumer protection norms may result in penalties or enforcement actions under the relevant Acts.
    6. Financial Stability:
      • RBI’s mandate to maintain financial stability is enshrined in the RBI Act, 1934.
      • It monitors systemic risks, including interconnectedness among lenders, under Section 45J of the RBI Act, 1934, and takes measures to mitigate risks to financial stability.
      • RBI may intervene in the interest of financial stability under Section 45W of the RBI Act, 1934, to prevent disruptions to the functioning of the financial system.

     

    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:

    1. 2 and 3 only
    2. 1 and 2 only
    3. 1 and 3 only
    4. 1, 2 and 3

     

    Practice MCQ:

    Consider the following statements regarding ‘Payment Banks’ in India:

    1. Payment Banks have the authority to accept demand deposits but are prohibited from issuing credit cards, disbursing loans, offering mutual funds units, and providing insurance products.
    2. Unlike scheduled commercial banks, Payment Banks are exempted from the obligation to maintain a cash reserve ratio with the Reserve Bank.
    3. Payment Banks are mandated to invest a minimum of 75% of their demand deposit balances in Statutory Liquidity Ratio (SLR) eligible Government securities/treasury bills.

    How many of the above statements is/are correct?

    1. One
    2. Two
    3. Three
    4. None

  • Karnataka approaches Supreme Court over NDRF Funds for Drought Management

    What is the news?

    • The Karnataka government has approached the Supreme Court against the Union government, seeking the release of drought relief funds from the National Disaster Response Fund (NDRF).
    • This disagreement marks the second major dispute after alleged ‘injustice’ in tax devolution and other allocations.

    Extent of Drought and Water Scarcity in Karnataka

    • Rainfall Deficit: During the last monsoon season, Karnataka experienced significant rainfall deficits, exacerbating the drought situation and affecting agricultural productivity.
    • Drought conditions: Karnataka faces extensive drought conditions, with 223 out of 236 taluks (mandals) declared as drought-hit areas, resulting in substantial crop loss.
    • Compensation Sought: The state has sought substantial financial assistance from the Centre, amounting to Rs 18,171 crores, to address the damages caused by drought.

    Karnataka’s Writ Petition to the Supreme Court

     

    • Legal Action: Karnataka’s petition under Article 32 of the Constitution seeks relief against the Union government’s alleged inaction in providing financial assistance for drought management.
    • Basis of Petition: The petition argues that the delay in releasing funds violates fundamental rights guaranteed under Articles 14 and 21 of the Constitution, pertaining to equality before the law and protection of life and personal liberty.

     

    What is National Disaster Response Fund (NDRF)?

    • The NDRF is a statutory body constituted under the Disaster Management Act, 2005.
    • It supplements State Disaster Response Fund (SDRF) of a State, in case of a disaster of severe nature, provided adequate funds are not available in SDRF.
    • The July 2015 guidelines states that natural calamities of cyclone, drought, earthquake, fire, flood, tsunami, hailstorm, landslide, avalanche, cloud burst, pest attack and cold wave and frost will qualify for immediate relief assistance from NDRF.
    • NDRF is managed in the “Public Accounts” under “Reserve Funds not bearing interest”.
    • The Comptroller and Auditor General of India (CAG) audits the accounts of NDRF.

    Disaster Relief for Indian states

    • Under the 2005 Disaster Management Act, there is no definition of disasters.
    • It can include any event arising from natural or man-made causes that can severely disrupt life for people, going beyond their coping capacity.
    • The 15th Finance Commission introduced a new methodology for state-wise allocations, considering factors like past expenditure, risk exposure, hazard, and vulnerability.

    Institutional Mechanism

    • States have the State Disaster Relief Funds (SDRF).
    • The Centre contributes 75% of the funds (and 90% for Himalayan and NE states) and states contribute the remainder.
    • The total amount is decided as part of the budgetary allocations and released periodically by the Centre.

    In case a state needs the Centre’s assistance, it must follow a procedure:

    1. It should detail the extent of the damage in a memorandum and submit it
    2. If this is acknowledged by Centre, an Inter-Ministerial Central Team (IMCT) conducts on-ground inspections to survey the damage
    3. A National Executive Team analyses the IMCT report
    4. Based on its recommendations, a High Level Committee shall approve the release of immediate relief from NDRF.

    Additionally, the Union Ministry of Home Affairs oversees the utilisation of NDRF releases.

     

    PYQ:

    2014: Drought has been recognized as a disaster in view of its spatial expanse, temporal duration, slow onset and lasting effects on vulnerable sections. With a focus on the September 2010 guidelines from the National Disaster Management Authority (NDMA), discuss the mechanisms for preparedness to deal with likely El Nino and La Nina fallouts in India.

     

    Practice MCQ:

    Consider the following statements about National Disaster response fund (NDRF):

    1. NDRF is a part of consolidated fund of India.
    2. Comptroller and Auditor General of India (CAG) audits the accounts of NDRF.

    Which among the above statements is/are correct?

    1. Only 1
    2. Only 2
    3. Both 1 and 2
    4. Neither 1 nor 2

  • Krishi Integrated Command and Control Centre (ICCC)

    Why in the news?

    Agriculture Minister has recently inaugurated the Krishi Integrated Command and Control Centre (ICCC) at Krishi Bhavan in New Delhi.

    What is Krishi ICCC?

    • The ICCC incorporates multiple IT applications and platforms to provide actionable insights and aid informed decision-making.
    • 8 large LED screens display crucial information such as crop yields, production, drought situation, cropping patterns, and relevant trends in graphical format.
    • The dashboard offers insights, alerts, and feedback on agriculture schemes, programs, projects, and initiatives, empowering stakeholders with comprehensive information.

    Data used by Krishi ICCC

    The ICCC will enable comprehensive monitoring of the farm sector by making available at one place geospatial information received from multiple sources such as:

    1. Plot-level data received through Soil Survey;
    2. Weather data from the India Meteorological Department (IMD);
    3. Sowing data from Digital Crop Survey;
    4. Farmer- and farm-related data from Krishi MApper, an application for geo-fencing and geo-tagging of land;
    5. Market intelligence information from the Unified Portal for Agricultural Statistics (UPAg); and
    6. Yield estimation data from the General Crop Estimation Survey (GCES).

    Objectives and Functionality

    • Comprehensive Monitoring: The ICCC aims to enable comprehensive monitoring of the farm sector by consolidating geospatial information from various sources, including remote sensing, weather data, soil surveys, and market intelligence.
    • Decision Support: Integrated visualization facilitates quick and efficient decision-making by policymakers and stakeholders, supported by real-time data and analysis.

    Farmer-Specific Advisories and Practical Applications

    • Individual Farmer Advisories: The ICCC has the potential to generate individual farmer-specific advisories through apps like Kisan e-Mitra (a chatbot developed for PM-Kisan beneficiaries), leveraging AI and machine learning to customize recommendations based on farmer data.

    Practical Applications:

      1. Farmer’s Advisory: Visualizations of GIS-based soil mapping, soil health card data, and weather-related information enable customized advisories on crop selection and agricultural practices.
      2. Drought Actions: Correlation of yield data with weather patterns allows proactive measures to mitigate the impact of droughts.
      3. Crop Diversification: Analysis of crop diversification maps helps identify regions suitable for diversified cropping, optimizing agricultural productivity.
      4. Farm Data Repository: The Krishi Decision Support System (K-DSS) acts as an agriculture data repository, facilitating evidence-based decision-making and the preparation of customized advisories for farmers.
      5. Validation of Yield: The ICCC enables the validation of yield data captured through different applications, ensuring accuracy and reliability.

     

    PYQ:

    2018: With reference to the ‘Global Alliance for Climate-Smart Agriculture (CACSA)’, which of the following statements is/are correct?

    1. GACSA is an outcome of the Climate Summit held in Paris in 2015.
    2. Membership of GACSA does not create any binding obligations.
    3. India was instrumental in the creation of GACSA.

    Select the correct answer using the codes given below:

    1. 1 and 3 only
    2. 2 only
    3. 2 and 3 only
    4. 1, 2 and 3

     

    Practice MCQ:

    What is the primary objective of the Krishi ICCC (Integrated Command and Control Centre)?

    1. To provide real-time market prices of agricultural products.
    2. To consolidate geospatial information from various sources for comprehensive monitoring of the farm sector.
    3. To offer financial support to farmers through direct benefit transfer schemes.
    4. To facilitate the construction of irrigation projects in rural areas.