From UPSC perspective, the following things are important :
Prelims level: Disaster Management
Mains level: Not Much
Central Idea
In the wake of natural disasters, states often request assistance from the central government.
Himachal Pradesh CM recently requested for a special disaster relief package and urged the designation of the calamity as a ‘national disaster.’
Natural Disaster Mitigation in States
Legal Framework: The 2005 Disaster Management Act provides the legal framework for addressing disasters, whether natural or man-made.
Defining disaster: It defines a “disaster” as an event causing substantial loss of life, human suffering, property damage, or environmental degradation beyond the community’s coping capacity.
National Disaster Management Authority (NDMA): The Act established the NDMA, headed by the Prime Minister, and State Disaster Management Authorities (SDMAs) led by Chief Ministers. These bodies, along with district-level authorities, form an integrated disaster management setup in India.
National Disaster Response Force (NDRF): The Act led to the creation of the NDRF, comprising several battalions or teams responsible for on-ground relief and rescue operations in various states.
Understanding the National Disaster Relief Fund (NDRF)
Mention in the Act: The NDRF is referenced in the 2005 Disaster Management Act and plays a crucial role in providing disaster relief.
State Disaster Relief Funds (SDRFs): States have their own SDRFs, which are the primary funds available for responding to notified disasters. The Central Government contributes 75% to SDRFs in general states and 90% in northeastern and Himalayan states.
Utilization of SDRFs: SDRFs are allocated for immediate relief efforts following notified calamities, including cyclones, droughts, earthquakes, fires, floods, tsunamis, and more.
Central Assistance: In the event of a severe calamity where state SDRF funds are insufficient, additional central assistance can be provided by the National Disaster Response Fund (NDRF).
Who determines a Severe Calamity?
Procedure: States follow a specific procedure to classify a calamity as “severe.” This involves submitting a memorandum detailing sector-wise damage and fund requirements. An inter-ministerial central team assesses the damage on-site.
Committee Approval: Specific committees review these assessments and submit reports. A High-Level Committee must approve the immediate relief amount to be released from the NDRF.
Criteria: The classification of a calamity as “severe” considers factors such as intensity, magnitude, assistance needs, and more.
Additional Funds for Disaster Mitigation
Funds Allocation: Funds for NDRF and SDRFs, allocated for preparedness, mitigation, and reconstruction, are part of budgetary allocations.
Financing mechanism: The 15th Finance Commission introduced a new methodology for state-wise allocations, considering factors like past expenditure, risk exposure, hazard, and vulnerability.
Utilization: NDRF and SDRF funds are released in two equal instalments, typically with requirements like Utilization Certificates. However, in urgent situations, these requirements can be waived.
State Disaster Mitigation Fund (SDMF): This fund supports activities such as forest restoration and public awareness. It received an allocation of Rs 32,030 crore from the 15th Finance Commission.
National Disaster Mitigation Fund (NDMF): The NDMF, amounting to Rs 13,693 crore, is dedicated to national disaster mitigation efforts.
From UPSC perspective, the following things are important :
Prelims level: Ancient India-Europe Maritime Trade Route, Port of Muziris
Mains level: Not Much
Central Idea
The India-Middle East-Europe Economic Corridor, announced at the G20 Summit, traces its historical roots to an ancient maritime trade route connecting the Indian subcontinent and the Europe.
India- Europe: Glimpse into Historical Trade Route
Early Discoveries: The trade between Rome and India during antiquity was established by early excavations. Sir Mortimer Wheeler’s work at Arikamedu in the 1930s and 40s confirmed the existence of Indo-Roman trade in the 1st century CE.
Recent excavations: Ongoing archaeological excavations, such as those at Muziris in Kerala and Berenike in Egypt, continue to yield new evidence.
Revised Understanding: However, early interpretations often overlooked the agency of Indian merchants and ship owners in this trade. Recent discoveries have expanded and corrected our understanding of this ancient trade network.
Staggering Scale: Recent estimates, supported by the Muziris Papyrus, reveal the immense scale of the Red Sea trade. Custom taxes on goods from India, Persia, and Ethiopia possibly contributed up to one-third of the Roman exchequer’s income.
Details unveiled by Muziris Excavations
Custom Taxes: The Muziris Papyrus detailed a cargo’s value, highlighting its enormous worth, with one cargo alone being equivalent to the purchase of premium farmland in Egypt or a prestigious estate in central Italy.
Roman Revenue: The import tax collected on this cargo alone exceeded two million sesterces. Extrapolating from these figures, Indian imports into Egypt were likely worth over a billion sesterces annually, with tax authorities generating 270 million sesterces.
Comparative Significance: These revenues surpassed those of entire subject countries, emphasizing the pivotal role of this trade route in sustaining the Roman Empire’s vast conquests and legions.
Muziris Papyrus
Trade details
Peak Period: During the 1st and 2nd centuries CE, a maritime highway connected the Roman Empire and India through the Red Sea. This route witnessed hundreds of ships travelling in both directions annually.
Traded Goods: The Romans had a great demand for Indian luxuries, including perfumes, ivory, pearls, gemstones, and exotic animals like elephants and tigers. Pepper, India’s major export, was particularly sought after, finding its way into Roman cuisine.
Trade from Rome: The flow of goods from Rome to India was limited, with gold being a prominent export. Roman wine was one notable exception, appreciated by Indians.
Pre-Common Era Trade
Early Indian Diaspora: Evidence suggests the existence of an Indian diaspora in the Middle East during the time of the Indus Valley Civilization (c. 3300-1300 BCE). This early trade was coastal and involved smaller quantities of goods.
Roman Period Expansion: The trade expanded significantly during Roman times, facilitated by large cargo ships directly connecting the subcontinent and the Roman Empire. Romans played a key role in industrializing this trade.
Post-Conquest Peak: The conquest of Egypt by the Romans in the 1st and 2nd centuries CE opened up the route to India, leading to a substantial increase in trade.
Organization and Duration of Journeys
Highly Organized Trade: Contracts were established between Indian merchants in Kerala and shippers in Alexandria. Goods were transported in containers, similar to modern practices, with references to insurance.
Understanding Monsoons: Indians recognized the monsoon winds’ seasonal patterns, enabling them to navigate the route efficiently. The journey to Egypt took approximately six to eight weeks, depending on favorable wind conditions.
Extended Stays: Indian diaspora rented houses in Egyptian ports while waiting for wind patterns to shift, allowing for the integration of Indian culture into these regions.
Roles of Indians in the Trade
Indian Seafaring Culture: Evidence suggests that Indian dynasties were interested in seafaring, as depicted in Ajanta paintings and early Indian coin designs featuring ships.
Indian Sailors: Graffiti left by Indian sailors, primarily Gujaratis from Barigaza (modern-day Bharuch), has been discovered in the Hoq caves on the island of Socotra, emphasizing their active participation in the trade network.
Comparing with the Silk Road
Indian Centrality: The ancient economic and cultural hub of Asia, the Indian subcontinent, and its ports played a central role in maritime East-West exchange. The concept of the “Silk Road” is relatively recent and inaccurately portrays the ancient trade routes.
Historical Invisibility: The Silk Road concept was coined in the late 19th century and did not exist in ancient or medieval times. It gained popularity in the 20th century, fostering romanticized ideas about East-West connectivity.
Recent Politicization: Chinese President Xi Jinping’s Belt and Road Initiative has politicized the Silk Road, making it a central component of Chinese foreign policy.
From UPSC perspective, the following things are important :
Prelims level: Earthquake
Mains level: NA
Central Idea
A devastating earthquake struck Morocco, resulting in significant casualties and damage.
Details of the Moroccan Earthquake
Shallow Epicenter: The quake’s epicentre was near the town of Ighil, approximately 70 km southwest of Marrakech. It was considered fairly shallow, with varying depth estimates.
Higher Energy: Shallow earthquakes are typically more dangerous as they carry more energy, making them more destructive compared to deeper quakes.
Major Causes
Tectonic Convergence: The earthquake resulted from the northward convergence of the African plate with the Eurasian plate along a complex plate boundary.
Faulting: The USGS attributed the quake to oblique-reverse faulting at a shallow depth within the Moroccan High Atlas Mountain range.
Fault Classification: Oblique-slip faults exhibit characteristics of both dip-slip and strike-slip faults, occurring in areas of compression where tectonic plates converge.
Why discuss this?
Low Seismicity: Earthquakes are uncommon in North Africa, with low seismicity rates along the northern margin of the continent.
Historic Strength: This earthquake was the strongest ever recorded in the mountainous region, catching Morocco unprepared for such an event.
Construction Vulnerabilities: Many Moroccan buildings, especially in rural areas and older cities, are not constructed to withstand strong tremors.
What is an Earthquake?
An earthquake is an intense shaking of the ground caused by movement under the earth’s surface.
It happens when two blocks of the earth suddenly slip past one another.
This releases stored-up ‘elastic strain’ energy in the form of seismic waves, which spreads through the earth and cause the shaking of the ground.
What exactly causes Earthquakes?
As we know, the earth’s outermost surface, crust, is fragmented into tectonic plates.
The edges of the plates are called plate boundaries, which are made up of faults.
The tectonic plates constantly move at a slow pace, sliding past one another and bumping into each other.
As the edges of the plates are quite rough, they get stuck with one another while the rest of the plate keeps moving.
Earthquake occurs when the plate has moved far enough and the edges unstick on one of the faults.
The location below the earth’s surface where the earthquake starts are called the hypocenter, and the location directly above it on the surface of the earth is called the epicentre.
From UPSC perspective, the following things are important :
Prelims level: Vidya Samiksha Kendras (VSKs)
Mains level: Not Much
Central Idea
Under the National Digital Education Architecture (NDEAR), the Ministry of Education is spearheading the establishment of Vidya Samiksha Kendras (VSKs) across Indian states.
What are Vidya Samiksha Kendras (VSKs)?
VSKs are data repositories designed to consolidate information from various educational schemes and initiatives run by the Ministry of Education.
These repositories aim to streamline data management, promote data analysis, and enhance decision-making in the education sector.
Key Components of VSKs:
Comprehensive Data: VSKs will aggregate data from diverse educational programs, including:
PM-POSHAN mid-day meal programs
Teacher training records from the National Initiative for School Heads’ and Teachers’ Holistic Advancement portal
Textbook content from Digital Infrastructure for Knowledge Sharing
School dropout and attendance data via Unified District Information System for Education (UDISE+)
Students’ learning outcomes from National Achievement Survey
Performance Grading Index evaluating state-level school education systems.
Central and State-Level Centers: At the central level, VSK operations are housed in the Central Institute of Educational Technology building within the National Council for Educational Research and Training (NCERT) campus. Ernst and Young, a multinational IT company, manages these operations.
Advisory Role: The EkStep Foundation, a non-profit organization co-founded by Nandan Nilekani, former Chairman of the Unique Identification Authority of India (UIDAI), provides advisory support for the VSK project’s implementation.
Transition to Automation: While data entry currently relies on manual processes and is available for download in Excel format, there are plans to transition to automation through Application Programming Interface (API) integration. This shift will enable seamless communication and data integration between multiple platforms at the central, state, and district levels.
State-Level Initiatives
Funding Allocation: The central government has allocated funds ranging from ₹2 to ₹5 crore to each state for the establishment of VSKs. These funds cover pre-configured open-source hardware and software, as well as human resources.
States in Action: States like Gujarat, Maharashtra, Odisha, and Jharkhand have already initiated the setup of these technological platforms.
Benefits of VSKs:
Data Correlation and Analysis: The primary objective of VSKs is to enable data analytics through correlation. With vast data from numerous educational schemes, VSKs seek to derive meaningful insights by connecting various data points.
Example Scenarios:
Attendance Patterns: Analyzing attendance data alongside student dropout rates to identify potential correlations.
Mid-Day Meals Impact: Investigating whether consistent mid-day meal provision in certain regions leads to increased school attendance.
Student Improvement Tracking: Monitoring students’ progress over time using data from weekly tests to tailor educational support.
Gross Access Ratio Mapping: VSKs will facilitate mapping the location of schools with population data to assess the Gross Access Ratio. This information can guide the establishment of new schools, support industry clusters in understanding skilling needs, and assist in higher education planning based on demand and future projections.
From UPSC perspective, the following things are important :
Prelims level: Orphan Diseases
Mains level: NA
Central Idea
Health discussions often revolve around common ailments, such as diabetes, which affect a significant portion of the population.
However, amidst these well-known health issues, there are numerous rare/ orphan diseases that, though infrequent, can have devastating consequences for patients and their families.
What are Orphan Diseases?
Rare diseases, often referred to as orphan diseases, are characterized by a low prevalence rate, typically affecting one person in a population of 10,000.
Challenges Posed
Difficulty in Diagnosis: Rare diseases are challenging to diagnose, particularly for young medical practitioners who may have limited exposure to such cases. The rarity of these conditions means that many healthcare professionals may not have encountered them during their training.
Lack of Research: Limited prevalence has historically resulted in insufficient research efforts. With fewer cases to study, there has been a lack of scientific understanding and effective treatments for many rare diseases.
High Treatment Costs: While advances in medical research have led to the development of therapies for some rare diseases, the costs associated with these treatments are often exorbitant. From an Indian perspective, these costs can range from Rs. 1 million to Rs. 20 million per year, making them unaffordable for many.
Initiatives and Progress in India
Increasing Awareness: Greater awareness of rare diseases and advancements in genomic technologies for diagnosis have begun to address these challenges. As awareness spreads, more cases are being identified and correctly diagnosed.
Regulatory Incentives: Several countries, including India, have introduced regulatory incentives to encourage pharmaceutical companies to invest in research and development for neglected diseases. This has led to increased interest in orphan drugs.
Patient-Driven Initiatives: Patient groups and organizations in India are actively contributing to rare disease research and treatment. One notable example is the Dystrophy Annihilation Research Trust (DART), which is conducting clinical trials for Duchenne’s muscular dystrophy.
Government Initiatives: The government’s National Policy for Treatment of Rare Diseases is gradually making an impact. It aims to address rare diseases prevalent in India, such as cystic fibrosis, hemophilia, lysosomal storage disorders, and sickle-cell anaemia.
Lessons from Leprosy
Incidence Reduction: Leprosy, once prevalent in India, is now considered a rare disease due to successful efforts in reducing its incidence.
Research Benefits: Research on orphan diseases like leprosy can yield broader societal benefits. For instance, studies on synthetic antibiotics have shown a potential to curb the spread of leprosy to household relatives.
Government Goals: Research findings may contribute to achieving the government’s objective of making India leprosy-free by 2027.
Conclusion
Rare diseases present unique healthcare challenges that have long been neglected.
However, recent progress in diagnosis, research, and patient-driven initiatives is gradually improving the landscape for rare disease patients in India.
As awareness grows and regulatory support continues, there is hope for enhanced diagnosis, treatment options, and affordability, ultimately improving the lives of those affected by these conditions.
From UPSC perspective, the following things are important :
Prelims level: Nation First Transit Card
Mains level: Not Much
Central Idea
State Bank of India (SBI) unveiled the ‘Nation First Transit Card’ for seamless and convenient digital fare payments.
The card is designed to enhance the commuting experience by facilitating digital ticketing across various modes of transport and parking, all within one card.
Nation First Transit Card
Aims to streamline customer commuting and digital fare payments for metro, buses, water ferries, and parking through a single card.
Provides versatility by enabling retail and e-commerce payments.
Powered by RuPay and National Common Mobility Card (NCMC) technology.
Key Facts about the National Common Mobility Card (NCMC)
Launched on March 4, 2019.
Enables SBI customers to use their Debit Cards as travel cards for metro rail and buses in enabled locations.
The concept originated from the Nandan Nilekani committee, established by the Reserve Bank of India (RBI).
An initiative by the Ministry of Housing and Urban Affairs in India, promoting cashless transactions and a unified payment platform for commuters.
Offers a unified contactless transport solution via the RuPay platform, developed by the National Payments Corporation of India (NPCI).
Functions as an automatic fare collection system, transforming smartphones into interoperable transport cards for metro, bus, and suburban railway services.
From UPSC perspective, the following things are important :
Prelims level: Incremental Cash Reserve Ratio (I-CRR)
Mains level: Not Much
Central Idea
The Reserve Bank of India (RBI) announced the phased discontinuation of the Incremental Cash Reserve Ratio (I-CRR) on September 8, 2023.
This measure aimed to absorb surplus liquidity created by factors such as the return of Rs 2,000 notes to the banking system.
RBI’s Decision
RBI conducted a review and decided to discontinue I-CRR in stages.
The central bank aims to release the impounded amounts gradually to avoid sudden shocks to the system’s liquidity, ensuring orderly money market functioning.
Understanding Cash Reserve Ratio (CRR)
CRR is a fundamental concept before delving into Incremental Cash Reserve Ratio (ICRR).
Banks are mandated to maintain a certain portion of their deposits and specific liabilities in liquid cash with the RBI.
CRR serves as a crucial tool in the RBI’s arsenal for managing liquidity in the economy and acts as a safety net during times of banking stress.
Currently, banks are required to uphold 4.5% of their Net Demand and Time Liabilities as CRR with the RBI.
Introduction to ICRR
I-CRR was introduced on August 10, 2023, as a temporary measure by RBI to absorb surplus liquidity.
Banks were required to maintain an I-CRR of 10% on the increase in their Net Demand and Time Liabilities (NDTL) between May 19, 2023, and July 28, 2023.
It came into effect from the fortnight starting August 12, 2023.
The RBI has the authority to implement an additional measure called Incremental Cash Reserve Ratio (ICRR), in addition to the standard CRR.
ICRR is employed during periods characterized by excess liquidity in the financial system.
Essentially, ICRR mandates that banks park even more liquid cash with the RBI than what is required under CRR.
This serves as a means to further manage and control liquidity in the banking system.
Reason for I-CRR
Excessive liquidity emerged due to factors like the return of Rs 2,000 banknotes, RBI’s surplus transfer to the government, increased government spending, and capital inflows.
The daily liquidity absorption by RBI in July reached Rs 1.8 lakh crore.
Managing surplus liquidity was necessary to maintain price and financial stability.
Impact on Liquidity Conditions
I-CRR was expected to absorb over Rs 1 lakh crore of excess liquidity from the banking system.
It temporarily shifted the banking system’s liquidity from surplus to deficit on August 21.
Factors like GST outflows and central bank selling of dollars contributed to tight liquidity.
However, liquidity conditions reverted to surplus from August 24.
On September 8, RBI absorbed Rs 76,047 crore of surplus liquidity from the system.
From UPSC perspective, the following things are important :
Prelims level: Natraja
Mains level: Not Much
Central Idea
In New Delhi’s Pragati Maidan, a grand 27-foot Nataraja statue, the world’s tallest depiction of Lord Shiva in his dancing form, awaits the arrival of G20 leaders.
Craftsmen behind the statue trace their lineage 34 generations back to the Cholas.
The Nataraja Masterpiece
Crafted from an eight-metal alloy (ashtadhatu) by skilled artisans from Swamimalai, Tamil Nadu.
Weighing approximately 18 tonnes, it was transported across the country on a 36-wheel trailer.
The statue’s design draws inspiration from three revered Nataraja idols:
Thillai Nataraja Temple in Chidambaram.
Uma Maheswarar Temple in Konerirajapuram.
Brihadeeswara (Big) Temple in Thanjavur (a UNESCO World Heritage Site).
The Cholas and Nataraja
All three temples that inspired the Bharat Mandapam Nataraja statue were originally constructed by the Cholas.
During the 9th-11th centuries AD, the Cholas ruled much of peninsular India and were known for their patronage of art and culture.
Chola art and architecture flourished during their territorial expansion.
Significance: Shiva as the Lord of Dance
Lord Shiva’s portrayal as Nataraja evolved from the Vedic deity Rudra.
Shiva is a complex deity, embodying both destructive and protective aspects.
Nataraja, the Lord of Dance, symbolizes Shiva’s role as both the destroyer and protector.
He is known to have invented numerous dances, ranging from calm to fierce and orgiastic.
Iconography of Nataraja
Nataraja is often depicted within a flaming aureole or halo, representing the circle of the world.
He has long dreadlocks, signifying the energy of his dance, and four arms.
In his upper right hand, he holds a damru (hand drum), in the upper left, agni (fire).
A dwarf-like figure beneath his foot symbolizes illusion.
Nataraja’s front right hand makes the ‘abhayamudra’ (gesture to allay fear), and he points to his raised feet with his front left hand.
Despite its complex symbolism, Nataraja typically wears a serene smile, signifying the duality of life and death.
The Lost Wax Method
The 27-foot Bharat Mandapam Nataraja statue was created using the traditional ‘lost-wax’ casting method, indigenous to the Chola era.
This method dates back at least 6,000 years.
It involves creating a wax model, covering it with a special soil paste, heating it to remove the wax, leaving behind a hollow mould, which is then filled with molten metal.
This technique was mastered by the Cholas and is considered a pinnacle of metallurgical artistry.
From UPSC perspective, the following things are important :
Prelims level: Lab-Grown Human Embryos
Mains level: Not Much
Central Idea
Scientists have successfully developed a “human embryo” in a laboratory without using traditional egg or sperm cells.
The model was constructed using a combination of stem cells, which possess the ability to differentiate into various cell types, resulting in a structure resembling an early human embryo.
Creating Human Embryo artificially
This model is considered one of the most comprehensive representations of a 14-day-old human embryo.
Multiple research teams worldwide have been working on similar embryo-like models, with approximately six such models published in the current year.
While none fully replicate early embryo development processes, they collectively contribute to scientific understanding.
Challenges in Creating the Model
Researchers in Israel utilized stem cells and chemical components, but only a small fraction spontaneously assembled into different cell types.
Approximately 1% of the mixture exhibited this spontaneous assembly, making the process inefficient.
Importance of Embryo Models and Research
Ethical constraints prevent direct research on early embryo development after implantation in the uterus.
Understanding early stages of embryo development is crucial as most miscarriages and birth defects occur during this period.
Such research aids in the comprehension of genetic and hereditary diseases.
Insights into why some embryos develop normally and implant successfully can enhance in vitro fertilization success rates.
Potential of Embryo-Like Models
These models enable the study of genetic, epigenetic, and environmental influences on embryo development.
They facilitate the investigation of genetic defects and the development of potential genetic therapies.
Limits of Lab-Grown Embryos
Lab-grown embryos are solely for studying the early stages of foetal development.
Implantation attempts are prohibited, and these models are typically destroyed after 14 days.
Originating from a UK committee proposal in 1979, the 14-day limit aligns with natural embryo implantation completion.
Beyond this point, embryos begin exhibiting characteristics of individuality and cannot split into twins.
The ethical considerations shift as embryos progress from a clump of cells to entities with individual potential, often marked by the Primitive Streak.
Insights from Embryo Models
Models like the one developed in Israel shed light on DNA duplication errors and chromosome imbalances.
These errors are now understood to occur earlier in the development process, during ongoing DNA duplication.
Such models aid in identifying the roles of various genes in fetal development, enabling gene manipulation for research purposes.
Conclusion
Lab-grown human embryo models represent a significant scientific achievement.
They provide a unique window into early embryo development and the understanding of genetic and developmental processes.
While not suitable for reproduction, these models hold promise for advancing genetic and medical research.
The FEOA is a significant legal instrument designed to address the issue of economic offenders who flee the country to evade criminal prosecution or refuse to return to face charges.
This act empowers authorities to confiscate the ill-gotten gains of these individuals and bar them from filing or defending civil claims, among other provisions.
Key Provisions of the Fugitive Economic Offenders Act:
(1) Definition of Fugitive Economic Offender:
A “fugitive economic offender” is an individual against whom an arrest warrant has been issued for committing an offense listed in the Act, and the value of the offense is at least Rs. 100 crore.
Offenses listed in the act include counterfeiting government stamps or currency, cheque dishonor, money laundering, and transactions defrauding creditors.
(2) Declaration of a FEO:
After considering an application, a special court (designated under the Prevention of Money Laundering Act, 2002) may declare an individual as a fugitive economic offender.
The court may confiscate properties that are proceeds of crime, benami properties, or any other property, whether in India or abroad.
Upon confiscation, all rights and titles of the property vest in the central government, free from encumbrances.
The central government may appoint an administrator to manage and dispose of these properties.
(3) Bar on Filing or Defending Civil Claims:
The Act allows any civil court or tribunal to prohibit a declared fugitive economic offender from filing or defending any civil claim.
Furthermore, any company or limited liability partnership where such an individual is a majority shareholder, promoter, or a key managerial person may also be barred from filing or defending civil claims.
Authorities may provisionally attach properties of an accused while the application is pending before the Special Court.
(4) Powers:
The authorities under the Prevention of Money Laundering Act, 2002, will exercise powers conferred upon them by the Fugitive Economic Offenders Act.
These powers are akin to those of a civil court and include the search of persons in possession of records or proceeds of crime, the search of premises upon belief that a person is a fugitive economic offender, and the seizure of documents.
Other laws related to FEOs
The existing laws under which such fugitive economic offenders are tried include:
Recovery of Debts Due to Banks and Financial Institutions Act (RDDBFI),
Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, (SARFESI) and
In the rapidly evolving landscape of the fintech sector, the Reserve Bank of India (RBI) Governor has called upon fintech entities to establish Self-Regulatory Organizations (SROs).
What is an SRO (Self-Regulatory Organization)?
An SRO is a non-governmental entity entrusted with the task of formulating and enforcing rules and standards governing the behaviour of participants within a specific industry.
The primary objective of an SRO is to safeguard consumer interests, uphold ethical practices, promote equality, and nurture professionalism within the industry.
Typically, SROs collaborate with all industry stakeholders to establish and administer regulations.
Key Characteristics of an SRO
Impartial Governance: SROs maintain impartial mechanisms to oversee self-regulatory processes, ensuring that industry members operate within a disciplined framework and accept penalties when necessary.
Beyond Industry Interests: SROs extend their concerns beyond the narrow interests of the industry itself. They aim to protect not only industry players but also workers, customers, and other participants in the ecosystem.
Supplement to Existing Regulations: While SROs formulate regulations, standards, and mechanisms for dispute resolution and enforcement, they do not replace applicable laws or government regulations. Instead, they complement existing legal frameworks.
Functions of an SRO
Communication Channel: SROs serve as intermediaries between their members and regulatory authorities like the RBI, facilitating two-way communication.
Establishment of Standards: SROs work to establish minimum benchmarks and industry standards, fostering professionalism and healthy market behavior among their members.
Training and Awareness: SROs provide training to their members’ staff and conduct awareness programs to promote industry best practices.
Grievance Redressal: They establish uniform grievance redressal and dispute management frameworks to resolve issues within the industry.
Why is an SRO Necessary?
As the fintech sector continues to evolve, SROs can play a pivotal role in ensuring the industry’s responsible growth and maintaining ethical standards.
They address critical issues such as market integrity, conduct, data privacy, cybersecurity, and risk management.
SROs contribute to building trust among consumers, investors, and regulators.
RBI’s Expectations from Fintech Players
The Reserve Bank of India expects fintech companies to:
Evolve industry best practices and privacy/data protection norms in compliance with local laws.
Set standards to prevent mis-selling and promote ethical business practices.
Ensure transparency in pricing.
RBI Governor has encouraged fintechs to establish an SRO voluntarily.
Benefits of an SRO
Industry Expertise: SROs possess deep industry knowledge, making them valuable contributors to industry discussions and educational initiatives.
Standardized Conduct: SROs promote a standardized code of conduct that encourages ethical business practices, ultimately boosting confidence in the industry.
Watchdog Role: SROs act as watchdogs, preventing unprofessional and unethical practices within the industry.
Conclusion
In the dynamic fintech sector, Self-Regulatory Organizations (SROs) emerge as indispensable entities.
Their role in shaping industry behaviour, promoting ethical conduct, and safeguarding consumer interests cannot be overstated.
From UPSC perspective, the following things are important :
Prelims level: Kuiper Belt
Mains level: Not Much
Central Idea
Two Japanese astronomers have uncovered potential evidence of an “Earth-like planet” within our solar system.
This mysterious planet is believed to have resided in the Kuiper Belt, a circumstellar disk beyond Neptune’s orbit that consists of outer solar system objects.
The Kuiper Belt, like the planets, orbits the Sun.
What is the Kuiper Belt?
The Kuiper Belt, also known as the Edgeworth-Kuiper belt, is a flat ring of small icy bodies orbiting the Sun beyond Neptune’s orbit.
Gerard Kuiper, a Dutch-American astronomer, first hypothesized its existence in the 1950s.
This belt contains millions of icy objects, collectively referred to as Kuiper Belt objects (KBOs) or trans-Neptunian objects (TNOs).
It is considered a remnant from the early history of our solar system.
The Kuiper Belt is thought to be the source of many short-period comets that orbit the Sun in less than 20 years.
It primarily consists of small icy bodies, including dwarf planets, asteroids, and comets.
Pluto, once classified as the ninth planet, is one of the most well-known objects in the Kuiper Belt but was reclassified as a dwarf planet by the International Astronomical Union (IAU) in 2006, partly due to its location within this belt.
The Astronomers’ Findings
The Japanese researchers suggest that if this new planet exists, it would be 1.5 to 3 times the size of Earth.
The discovery challenges previous theories of a distant “Planet Nine” and posits the possibility of a planet closer to us, within the Kuiper Belt.
The astronomers predict the existence of an Earth-like planet and several trans-Neptunian objects (TNOs) on unique orbits that could serve as observational signatures of this potential planet’s perturbations.
They estimate that this planet could be situated between 200 and 500 astronomical units (AU) from the Sun, tilted about 30 degrees. For reference, Pluto is 39 AU from Earth.
From UPSC perspective, the following things are important :
Prelims level: Unified Payments Interface (UPI)
Mains level: Read the attached story
Central Idea
The National Payments Corporation of India (NPCI) has introduced a range of groundbreaking features on the popular Unified Payments Interface (UPI) platform.
Hello! UPI: Voice-Enabled UPI Payments
Hello! UPI, a remarkable addition, facilitates voice-enabled UPI payments in Hindi and English.
Users can make UPI payments through voice commands via apps, telecom calls, and IoT devices.
Future plans include expanding this feature to support several regional languages, further enhancing accessibility.
Credit Line on UPI: Streamlined Access to Credit
The RBI Governor introduced Credit Line on UPI, an initiative aimed at promoting financial inclusion and innovation.
This offering allows users to access pre-sanctioned credit from banks via UPI, simplifying the credit acquisition process.
Features include interest-free credit periods, defined charges, and seamless customer engagement channels.
The goal is to expedite the credit access process, driving economic growth and digital banking efficiency.
UPI LITE X: Offline Money Transfers
UPI LITE X introduces offline money transfers, enabling users to send and receive funds even without internet connectivity.
This feature empowers transactions in areas with poor network coverage.
UPI LITE payments are known for their speed and efficiency, making them a preferred choice for users.
UPI Tap & Pay: Convenience Redefined
UPI Tap & Pay offers a new way to complete payments at merchant locations.
In addition to traditional scan-and-pay, users can now tap Near Field Communication (NFC)-enabled QR codes.
This feature enhances convenience, making transactions swift and effortless.
Conversational Payments: AI-Enabled Transactions
Conversational UPI Payments and Conversational Bill Payments represent a paradigm shift in human-machine interaction.
These AI-enabled transactions aim to deepen the adoption of digital payments across India.
Users can make voice-enabled UPI payments through UPI Apps, telecom calls, and IoT devices in Hindi, English, and regional languages.
NPCI has collaborated with AI4Bharat at IIT Madras to develop language models for Hindi and English payments.
BillPay Connect: Simplified Bill Payments
BillPay Connect introduces a nationalized number for bill payments across India.
Customers can conveniently fetch and pay bills through messaging apps with a simple ‘Hi.’
Even users without smartphones or immediate data access can pay bills via a missed call, followed by a verification call.
Voice Assisted Bill Payments via smart home devices offer added convenience and instant confirmation.
This innovation enhances security and reassurance for both customers and collection centers.
Conclusion
These pioneering features unveiled by NPCI mark a significant leap in India’s digital payment landscape.
They not only enhance accessibility but also redefine convenience, making digital transactions more user-friendly.
With innovative offerings like voice-enabled payments and streamlined credit access, NPCI continues to play a pivotal role in India’s technological advancement.
The journey towards a digitally empowered India takes a giant stride forward with these game-changing UPI features.
From UPSC perspective, the following things are important :
Prelims level: Electron Scattering Experiment
Mains level: NA
Central Idea
In the world of atomic and nuclear physics, the quest to understand the inner workings of matter has been a constant journey of discovery.
Scientists have long sought ways to unravel the mysteries hidden within atomic nuclei, and recent breakthroughs in experimental techniques have taken us one step closer to achieving this goal.
Historical Milestones
150 years ago, scientists like Ernest Rutherford, Hans Geiger, and Ernest Marsden conducted experiments exposing a thin gold foil to radiation.
These experiments revealed that every atom has a dense central nucleus where mass and positive charge are concentrated.
Seven decades ago, physicist Robert Hofstadter led a team that bombarded thin foils with high-energy electrons, allowing scientists to probe atomic nuclei’s inner structure.
Recent advancements
Researchers at the RIKEN Nishina Center for Accelerator-Based Science in Japan have demonstrated a setup using electron scattering to investigate unstable nuclei.
This advancement opens new avenues for understanding the fundamental building blocks of matter.
The SCRIT (Self-Confining Radioactive-isotope Ion Target) setup is more sophisticated than previous experiments using thin foils.
SCRIT can hold caesium-137 atom nuclei in place and facilitate electron interactions, a critical innovation.
The Experimental Process
Electrons are accelerated in a particle accelerator to energize them.
These energized electrons are directed at a block of uranium carbide, resulting in a stream of caesium-137 ions (atoms stripped of electrons).
The ions are transported to the SCRIT system, which traps target ions along the electron beam path using electric attractive forces.
This “overlap” ensures a high probability of electron-ion collisions.
Probing Nuclear Structure
Understanding the experimental setup’s probe into nuclear structure requires exploring interference patterns.
When light passes through a small hole, it creates concentric circles of light and dark patches due to interference.
Similarly, when an electron scatters off an atomic nucleus, it behaves like a wave during the interaction, resulting in interference patterns.
A magnetic spectrometer is used to record these interference patterns, offering advantages in clean and fine-tuned interactions.
Results and Implications
The experimental results confirm the internal structure of the caesium-137 nucleus, aligning with previous studies and theoretical calculations.
The real significance lies in the development of the “femtoscope,” which can probe the femtometer scale (10^-15 meters) of atomic nuclei, unlocking new possibilities in nuclear physics.
Unresolved Nuclear Structure
The challenge in nuclear physics is the absence of a unified theory explaining atomic nuclei’s structure, despite various existing models.
Scientists encounter intriguing properties, such as the “island of stability,” where heavier nuclei of unstable elements defy the trend of faster decay via radioactivity.
This phenomenon raises questions about nuclear structure and the existence of stable clusters.
Future Prospects
Researchers aim to use femtoscopes to explore nuclei with irregular shapes, bridging the gap between expected and unexpected nuclear structures.
This promises to illuminate the fundamental nature of atomic nuclei and advance our understanding of the universe at its most basic level.
From UPSC perspective, the following things are important :
Prelims level: VGF
Mains level: EV infrastructure promotion
Central Idea
The Union Cabinet recently granted approval for a viability gap funding (VGF) scheme worth ₹3,760 crore to advance battery energy storage systems (BESS) development.
Viability Gap Funding (VGF) Scheme
VGF means a grant to support projects that are economically justified but not financially viable.
The VGF scheme was launched in 2004 to support projects that come under Public-Private Partnerships.
The scheme is designed as a Plan Scheme to be administered by the Ministry of Finance and amount in the budget are made on a year-to-year basis.
Such a grant under VGF is provided as a capital subsidy to attract the private sector players to participate in PPP projects that are otherwise financially unviable.
Projects may not be commercially viable because of the long gestation period and small revenue flows in future.
VGF for Battery Infrastructure
This scheme aims to create 4,000 megawatt hours (MWh) of BESS projects by 2030-31, offering financial support of up to 40% of the capital cost in the form of VGF.
It is expected to lower battery storage costs, enhancing their practicality.
Designed to leverage renewable energy sources like solar and wind power, the scheme aims to provide clean, dependable, and cost-effective electricity to the public.
How would it work?
By offering VGF support, the scheme targets achieving a levelised cost of storage (LCoS) ranging from ₹5.50-6.60 per kilowatt-hour (kWh).
It would thus make stored renewable energy a viable option for managing peak power demand across the country.
The VGF disbursement will occur in five stages linked to BESS project implementation milestones.
Benefits to Consumers and Infrastructure
To ensure consumer benefits, a minimum of 85% of BESS project capacity will be allocated to distribution companies (Discoms).
This strategy enhances renewable energy integration into the electricity grid, minimizes wastage, and optimizes transmission network usage, reducing the need for costly infrastructure upgrades.
This approach stimulates healthy competition and encourages BESS ecosystem growth, drawing substantial investments and generating opportunities for related industries.
SEBI aims to implement a One-Hour trade Settlement by March 2024.
Additionally, an Application Supported by Blocked Amount (ASBA)-like facility for secondary market trading is anticipated to launch in January 2024.
Do you know?
India is the first jurisdiction in the globe that has moved to T+1 settlement (trade plus one day). We are now talking about one-hour settlement and that will be a stepping-stone to instantaneous settlement.
Understanding Trade Settlement
Trade settlement involves the exchange of funds and securities on the settlement date.
It is considered complete when purchased securities are delivered to the buyer, and the seller receives the funds.
India transitioned to a T+1 settlement cycle earlier this year, facilitating faster fund transfers, share deliveries, and operational efficiency.
SEBI’s Stance
SEBI believes that achieving instantaneous trade settlement will take additional time due to necessary technology development.
Therefore, SEBI plans to implement a one-hour trade settlement before the instantaneous settlement.
SEBI expects instantaneous trade settlement to be launched by the end of 2024.
Benefits of One-Hour Trade Settlement
In the current T+1 settlement cycle, the seller receives funds in their account the day after a trade.
With one-hour settlement, the seller would receive funds within an hour of selling shares, and the buyer would have shares in their demat account within an hour.
Back2Basics: T+1 Settlement Cycle
The T+1 settlement cycle means that trade-related settlements must be done within a day, or 24 hours, of the completion of a transaction.
For example, under T+1, if a customer bought shares on Wednesday, they would be credited to the customer’s demat account on Thursday.
This is different from T+2, where they will be settled on Friday.
As many as 256 large-cap and top mid-cap stocks, including Nifty and Sensex stocks, come under the T+1 settlement.
Until 2001, stock markets had a weekly settlement system.
The markets then moved to a rolling settlement system of T+3, and then to T+2 in 2003.
In 2020, Sebi deferred the plan to halve the trade settlement cycle to one day (T+1) following opposition from foreign investors.
From UPSC perspective, the following things are important :
Prelims level: Dual-Use Items
Mains level: Not Much
Central Idea
The government has recently announced its commitment to enhancing the control of dual-use items to prevent their misuse by non-state actors and terrorists.
Dual-use items refer to goods that can be utilized for both civilian and military purposes.
Understanding Dual-Use Items
Dual-use items are commodities with the potential for application in both civilian and military contexts.
They are heavily regulated due to their capacity to be initially intended for civilian use and later repurposed for military or even terrorist activities.
Some examples include global positioning satellites, missiles, nuclear technology, chemical and biological weapons, night vision technology, thermal imaging equipment, specific models of drones, precision-engineered aluminium pipes, and certain types of ball bearings.
Control Mechanisms for Dual-Use Items
International Cooperation: Most industrialized nations have established export controls on specific categories of designated dual-use technologies.
Multilateral Agreements: Various international treaties and agreements govern the export of these items.
India’s Participation: India is a signatory to major multilateral export control regimes like the Missile Technology Control Regime (MTCR), Wassenaar Arrangement (WA), Australia Group (AG), and Nuclear Suppliers Group (NSG). It is also party to key conventions such as the Chemical Weapons Convention (CWC) and Biological and Toxic Weapons Convention (BWC).
DGFT’s Role: In India, the Director General of Foreign Trade (DGFT) plays a pivotal role as a facilitator of exports and imports. The DGFT maintains a specialized list known as SCOMET (Specialty Chemicals, Organisms, Materials, Equipment, and Technologies) to regulate dual-use items.
What is the SCOMET List?
SCOMET item is an acronym for Special Chemicals, Organisms, Materials, Equipment, and Technologies.
These are dual-use items that can be used for both civilian and military applications. India’s Foreign Trade Policy regulates the export of items on the SCOMET List.
Exporting these items and technologies falls under strict regulations. It can either be prohibited or permitted only under a license.
The SCOMET control list aligns with the control lists of various multilateral export control regimes and conventions.
Necessity of Controlling Dual-Use Items
India’s Commitment: India is firmly committed to non-proliferation efforts related to dual-use items.
Integral Component: Export control over these items forms an integral part of India’s broader export control system.
Compliance: It ensures that sensitive and dual-use goods, including those covered by the Missile Technology Control Regime (MTCR), are traded in full compliance with India’s obligations under various international regimes.
Conclusion
The government’s commitment to enhancing export control measures for dual-use items reflects its dedication to global non-proliferation efforts and the responsible trade of sensitive technologies.
Collaborative efforts among governments, industries, and stakeholders remain crucial in achieving effective export control of these items.
The amendment permits the diversion of forest land for certain projects near international borders without forest clearance under the Forest (Conservation) Act (FCA) 1980.
Other Northeastern states, including Nagaland, Tripura, Mizoram, and Sikkim, governed by the ruling govt at centre or its allies, have also objected to the 100-km exemption clause.
Forest (Conservation) Amendment Bill, 2023
Objective
Clarify and enhance the Forest (Conservation) Act, 1980
Scope
Applicability to land designated as forest since 1980
Exemptions
Land within 100 km of borders for national security, roadside amenities, and public roads
Assignment of Forest Land
Prior approval required from central government for all entities
Permitted Activities
Expanded to include check posts, fencing, bridges, zoos, safaris, and eco-tourism facilities
Is FCA Applicable to the Northeast?
Constitutional protections like Article 371A for Nagaland and 371G for Mizoram prohibit the application of certain laws enacted by Parliament in these states.
In 1986, Nagaland extended the FCA’s application to specific forests, but its status remains uncertain due to conflicting ministry statements.
Mizoram, since becoming a state in 1986, has the FCA in force, covering a significant portion of its forest areas.
FCA Application in the Rest of the Northeast
The FCA is applicable in the rest of the Northeast, including Meghalaya, Tripura, Assam, Manipur, Sikkim, and Arunachal Pradesh.
The FCA clearance process differs among these states.
Conclusion
Protecting Northeastern forests requires a balance between legal frameworks like the FCA and FRA.
Clear guidelines and proactive measures can safeguard both forest rights and the environment in the region.
From UPSC perspective, the following things are important :
Prelims level: Urban Cooperative Banks (UCBs)
Mains level: Not Much
Central Idea
The Reserve Bank of India (RBI) Governor recently addressed the issues and vulnerabilities surrounding Urban Cooperative Banks (UCBs), highlighting the importance of addressing these concerns.
What areUrban Cooperative Banks (UCBs)?
UCBs are primary cooperative banks primarily situated in urban and semi-urban areas, catering to the financial needs of small borrowers and businesses.
They are governed by the Banking Regulations Act, 1949, the Banking Laws (Cooperative Societies) Act, 1955, and registered under the Cooperative Societies Act of the respective State.
Initially, UCBs were permitted to lend exclusively for non-agricultural purposes; however, they have diversified their size and operations since 1996.
Approximately 79% of UCBs are concentrated in five states: Andhra Pradesh, Gujarat, Karnataka, Maharashtra, and Tamil Nadu.
Types of UCBs
UCBs are categorized into different tiers by the RBI based on their deposit size:
Tier 1: Deposits up to Rs 100 crore.
Tier 2: Deposits ranging from Rs 100 to 1,000 crore.
Tier 3: Deposits between Rs 1,000 to Rs 10,000 crore.
Tier 4: Deposits exceeding Rs 10,000 crore.
Key concerns/addresses raised by RBI
(1) Operational Stability
UCBs must enhance their financial and operational resilience to contribute to the overall stability of the financial and banking sector.
The quality of governance within UCBs plays a pivotal role in ensuring the stability of these individual banks.
(2) Setting up right priorities
Boards and directors of UCBs must prioritize integrity and transparency in financial reporting, refraining from innovative accounting practices that obscure the actual financial position.
Proactive management of Asset Liability is essential to manage liquidity risk systematically.
Establishing robust IT and cybersecurity infrastructure, along with the availability of necessary skills at the bank level, is crucial.
Governance practices, especially those related to Compliance, Risk Management, and Internal Audit, need strengthening.
(3) Functioning of Boards
Ensuring directors possess adequate skills and expertise.
Constituting a professional board of management.
Considering the diversity and tenure of board members.
Promoting transparent and participatory board discussions.
Ensuring the effective functioning of board-level Committees.
(4) Credit Risk Management
Upholding risk management through robust underwriting standards.
Implementing effective post-sanction monitoring.
Timely recognition and mitigation of emerging stress.
Pursuing follow-ups with large Non-Performing Asset (NPA) borrowers to facilitate recovery and maintain adequate provisioning.
Conclusion
Addressing the concerns and vulnerabilities in Urban Cooperative Banks is vital for the overall stability and resilience of the banking sector.
The RBI’s recommendations highlight the importance of governance, risk management, and transparency in ensuring the health of UCBs.
