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Type: Prelims Only

  • Digital India Initiatives

    RBI plans to link Credit Cards with UPI

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Features of UPI

    Mains level: Not Much

    The RBI has proposed to allow the linking of credit cards with the Unified Payments Interface (UPI).

    Integrating Credit Cards to UPI

    • The integration will first begin with the indigenous RuPay credit cards.
    • Both the RuPay network and UPI are managed by the same organisation – the National Payments Corporation of India (NPCI).

    What is UPI?

    • UPI is an instant real-time payment system developed by National Payments Corporation of India (NPCI) facilitating inter-bank transactions.
    • The interface is regulated by the Reserve Bank of India and works by instantly transferring funds between two bank accounts on a mobile platform.

    Why such move?

    • The linkage of UPI and credit cards could possibly result in credit card usage zooming up in India given UPI’s widespread adoption.
    • The integration also opens up avenues to build credit on UPI through credit cards in India, where in the last few years, a number of startups like Slice, Uni, One etc. have emerged.
    • The move could also be a push to increase adoption by banking on UPI’s large user base.
    • So far, UPI could only be linked to debit cards and bank accounts.
    • This will provide additional convenience to the users and enhance the scope of digital payments.

    What could be the hurdles?

    • There are some regulatory areas that would have to be addressed before the linkage happens.
    • For instance, it is not clear how the Merchant Discount Rate (MDR) will be applied to UPI transactions done through credit cards.
    • UPI and RuPay attract zero-MDR, meaning that no charges are applied to these transactions, which is a key reason behind the prolific adoption of UPI both by users and merchants.
    • The norm has faced pushback from the payments industry.
    • It has argued that it limits the aggregators’ ability to invest in and maintain the financial infrastructure of the payment ecosystem that they have built.
    • Applicability of zero-MDR on UPI could also be a reason why other card networks such as Visa and Mastercard may not have been onboarded to UPI for credit cards yet.

    Note: MDR is a fee that a merchant is charged by their issuing bank for accepting payments from their customers via credit and debit cards.

    What is the big picture?

    • UPI has become the most inclusive mode of payment in India with over 26 crore unique users and five crore merchants on the platform.
    • The progress of UPI in recent years has been unparalleled.
    • Many other countries are engaged with us in adopting similar methods in their countries.
    • In May, UPI processed 5.95 billion transactions worth over Rs 10 trillion, a record high since its launch in 2016.
    • NPCI is looking to soon process a billion transactions a day.

     

    Try this PYQ from CSP 2017:

    Q.Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news?

     

    (a) The incentive given by a bank to a merchant for accepting payments through debit cards pertaining to that bank

    (b) The amount paid back by banks to their customers when they use debit cards for financial transactions for purchasing goods or services

    (c) The charge to a merchant by a bank for accepting payments from his customers through the bank’s debit cards

    (d) The incentive is given by the Government to merchants for promoting digital payments by their customers through Point of Sale (PoS) machines and debit cards

     

    Post your answers here.

     

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  • Child Rights – POSCO, Child Labour Laws, NAPC, etc.

    [pib] Children in Street Situations (CiSS) Application

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: CiSS Application

    Mains level: Child rights issue

    The National Commission for the Protection of Child Rights (NCPCR) has launched a “CiSS application” under the Baal Swaraj portal to help in the rehabilitation process of Children in Street Situations (CiSS).

    CiSS Application

    • The CiSS application is used for receiving data of children in street situations from all the states and union territories, tracking their rescue and rehabilitation process.
    • The initiative is taken under the direction of the Supreme Court of India.
    • The program embodies Article 51 (A) of the Constitution of India, as it provides a platform to the public and organizations catering to the welfare of the children to report any child in need of assistance.
    • The platform serves to collect data and report to the District Child Protection Officer (DCPO) for them to take necessary action.
    • It also provides a platform for professionals and organizations to provide any help that they can to children in need.
    • Help can be provided in the form of open shelters, counselling services, medical services, sponsorships, de-addiction services, education services, legal/paralegal services, volunteering etc.

    Its working framework

    • It categorizes any child under ‘Children in Street Situation’ if the child is living on the streets alone, living on the streets during the day, or living on the streets with the family.
    • The root cause of this phenomenon is the migration of families from rural to urban areas in search of a better standard of living.

    How does it work?

    It follows six stages framework for the rehabilitation of children.

    1. Collection of the child’s details, which is accomplished through the portal.
    2. Social Investigating Report (SIR)e. investigating the child’s background. This is done under the supervision of the District Child Protection Unit (DCPU) by the District Child Protection Officer (DCPO) by conversing and counselling the child.
    3. Formulating an Individual Care Plan (ICP) for the child.
    4. Child Welfare Committee (CWC) based on the SIR submitted to the CWC.
    5. Allocating the schemes and benefits that the beneficiary can avail of.
    6. A checklist is made for the evaluation of the progress i.e. (Follow Ups).

     

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  • Climate Change Impact on India and World – International Reports, Key Observations, etc.

    Environmental Performance Index (EPI), 2022

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Environmental Performance Index

    Mains level: Western anti-India lobby

    India has objected to a report, called the EPI, 2022, that places the country last (along with Nigeria) on a list of 180 countries on managing climate change, environmental health, and ecosystem vitality.

    Environmental Performance Index

    • The report is prepared by researchers at the Yale and Columbia universities.
    • It provides a data-driven summary of the state of sustainability around the world.
    • Using 40 performance indicators across 11 issue categories, the EPI ranks 180 countries on climate change performance, environmental health, and ecosystem vitality.
    • These indicators provide a gauge at a national scale of how close countries are to established environmental policy targets.
    • The EPI offers a scorecard that highlights leaders and laggards in environmental performance and provides practical guidance for countries that aspire to move toward a sustainable future.

    Why the report is inherently biased?

    • The US placed itself at the 20th spot of the 22 wealthy democracies in the global west and 43rd overall.
    • The relatively low ranking has put all blame on the rollback policies during the Trump administration.
    • It goes on to preach that developing countries do not have to sacrifice sustainability for economic security.
  • Capital Markets: Challenges and Developments

    Understanding SEBI Rules on Passive Funds

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Passive Funds

    Mains level: Not Much

    The Securities and Exchange Board of India (SEBI) recently issued a circular on passive funds covering matters related to transparency, liquidity and operational aspects of exchange-traded funds (ETFs) and index funds.

    What are Passive Funds?

    • A passive fund is an investment vehicle that tracks a market index, or a specific market segment, to determine what to invest in.
    • Unlike with an active fund, the fund manager does not decide what securities the fund takes on.
    • This normally makes passive funds cheaper to invest in than active funds, which require the fund manager to spend time researching and analysing opportunities to invest in.
    • Tracker funds, such as ETFs (exchange traded funds) and index funds fall under the banner of passive funds.

    What is a passive ELSS scheme?

    • Passive funds mimic an underlying index. By contrast active funds are actively managed by fund managers.
    • The SEBI has now introduced a passive equity-linked saving schemes (ELSS) category, which will give taxpayers another investment option to avail of tax benefits.
    • According to the circular, the passive ELSS scheme will be based on any index comprising equity shares from the top 250 companies in terms of market capitalization.
    • Beginning 1 July, a fund house will be able to either have an active ELSS scheme or a passive ELSS scheme, but not both.

    What are the norms for debt ETFs?

    • Passive debt funds are now divided into three categories:
    1. Corporate debt funds with exposure to corporate bonds
    2. G-Sec funds investing in government securities, and
    3. Hybrid funds where allocation is a combination of corporate bonds and government securities
    • Currently, debt funds in the passive category invest only in AAA-rated instruments.
    • The Sebi circular introduces norms for each debt fund category, including portfolio exposure limits to each sector, the issuer (based on rating) and group.
    • Application of these provisions should help mitigate concentration risk in debt ETFs/ index funds.

    What about tracking error?

    • As per Sebi’s circular, passive funds must disclose ‘tracking error’ and ‘tracking difference’ in their monthly fact sheets.
    • These metrics indicate how different the performance of the fund is compared to its underlying index—an effort to keep investors better informed.
    • The circular specifies limits for tracking error and tracking difference, which passive funds must follow.

    What is the mandate on disclosing NAVs?

    • Because of poor liquidity for ETFs in the secondary market in India, ETF prices could differ widely from the net asset value (NAV) of the fund.
    • The NAV of the fund represents the value of the underlying asset of the ETF.
    • The Sebi circular mandates disclosure of NAV (indicative) on a continuous basis throughout the day on the stock exchange.
    • While the practice is already in existence, Sebi rules institutionalize it.
    • Checking the NAV can help one avoid making a transaction at a significant premium or discount.

    Can one execute ETF transactions directly?

    • Investors can buy or sell units of ETFs only on stock exchanges.
    • But, large buy or sell transactions can also be directly placed with the fund house.
    • Sebi now says orders greater than ₹25 crore alone can be placed for redemption or subscription directly with the asset management company (AMC).

     

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  • Festivals, Dances, Theatre, Literature, Art in News

    Festivals in news: Mela Kheerbhawani

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Mela Kheerbhawani

    Mains level: NA

    Kashmiri Hindus, locally known as Pandits, will celebrate the Zyestha Ashtami at the Mata Kheerbhawani temple at Tulmulla in central Kashmir’s Ganderbal.

    Kheerbhawani Temple

    • The temple is dedicated to the goddess Ragnya Devi.
    • The festival, known as Mela Kheerbhawani, is the largest gathering of Hindus in Kashmir after the annual Amarnath Yatra.
    • Situated 30 km from Srinagar city, it is one of the most sacred pilgrimage sites for Kashmiri Hindus.
    • The temple gets its name from kheer, or milk and rice pudding that pilgrims pour into the spring inside the temple complex as an offering to the goddess.
    • Hundreds of local Muslims, too, traditionally join the celebrations.

    Legend of the festival

    • Legend has it that the water of the temple’s spring changes colour from white to red and black.
    • The colour of the water is said to predict the impending future.
    • If it changes to black, it is seen as inauspicious or an impending disaster.
    • Kashmiri Pandits say that the water had turned black before they were forced to flee Kashmir during the militancy of 1990.

     

    Tap to read more about:

    Festivals, Dances, Theatre, Literature, Art in News

     

    Try this PYQ:

    Q.Consider the following pairs:

    Traditions- Communities

    1. Chaliha Sahib Festival- Sindhis
    2. Nanda Raj Jaat Yatra- Gonds
    3. Wari-Warkari- Santhals

    Which of the pairs given above is/are correctly matched?

    (a) 1 only

    (b) 2 and 3

    (c) 1 and 3

    (d) None of the above

     

    Post your answers here.

     

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  • Modern Indian History-Events and Personalities

    Sant Kabir: the extraordinary poet-saint of the Bhakti Movement

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Kabir, Bhakti Movement

    Mains level: NA

    President Kovind inaugurated the Sant Kabir Academy and Research Centre Swadesh Darshan Yojana and paid tribute to the Bhakti saint, Kabir at Maghar, his resting place in Uttar Pradesh.

    Kabir and the Bhakti Movement

    • The Bhakti movement, which began in the 7th century in South India, had begun to spread across north India in the 14th and the 15th centuries.
    • The movement was characterized by popular poet-saints who sang devotional songs to God in vernacular languages.
    • Most of the preaching were meant for abolishing the Varna system and promoting Hindu-Muslim unity.
    • They emphasized an intense emotional attachment with God.

    Who was Sant Kabir?

    • One school within the Bhakti movement was the Nirguni tradition and Sant Kabir was a prominent member of it.
    • In this tradition, God was understood to be a universal and formless being.
    • Many of the saints of the Bhakti movement came from the ranks of the lower to middle artisanal classes.
    • Kabir was an alleged ‘low caste’ weaver (Julaha), Raidas was a leather worker and Dadu a cotton carder.
    • Their radical dissent against orthodoxy and rejection of caste made these poet-saints extremely popular among the masses and their ideology of egalitarianism spread across India.

    His life

    • He was born in Varanasi and lived between the years 1398 and 1448, or till the year 1518 according to popular belief.
    • He was from a community of ‘lower caste’ weavers of the Julaha caste, a group that had recently converted to Islam.
    • He learned the art of weaving, likely studied meditative and devotional practices under the guidance of a Hindu guru and grew to become an eminent teacher and poet-singer.
    • Kabir’s beliefs were deeply radical, and he was known for his intense and outspoken voice which he used to attack the dominant religions and entrenched caste systems of the time.
    • He composed his verses orally and is generally assumed to be illiterate.

    His literary works

    • Kabir’s compositions can be classified into three literary forms – dohas (short two liners), ramanas (rhymed 4 liners), sung compositions of varying length, known as padas (verses) and sabdas (words).
    • There are myriad legendary accounts on the other hand, for which there exists less of a factual historical basis.

    Kabir’s critique of religion and caste

    • Kabir is in modern times portrayed as a figure that synthesized Islam and Hinduism.
    • While he did borrow elements from different traditions, he very forcefully proclaimed his independence from them.
    • He did not only target the rituals and practices of both Hinduism and Islam, but also dismissed the sacred authority of their religious books, the Vedas and the Quran.
    • He even combined Allah and Ram in his poems.
    • He sought to eradicate caste distinctions and attempted to create an egalitarian society, by stressing the notion that a Bhakt (devotee) was neither a Brahmin nor an ‘untouchable’ but just a Bhakt.

    Kabir’s legacy

    • Kabir’s own humble origins and his radical message of egalitarianism fostered a community of his followers called the Kabir Panth.
    • A sect in northern and central India, many of their members are from the Dalit community.
    • All regard Kabir as their guru and treat the Bijak as their holy scripture.
    • The Bijak contains works attributed to Kabir and is argued by historians to have been written in the 17th century.
    • Several of Kabir’s verses and songs form a vital part of the Guru Granth Sahib.

    Try this PYQ from CSP 2019:

    Q.Consider the following statements:

    1.Saint Nimbarka was a contemporary of Akbar.

    2.Saint Kabir was greatly influenced by Shaikh Ahmad Sirhindi.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

     

    Post your answers here.

     

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  • Historical and Archaeological Findings in News

    Ancient sculptures recovered from Australia, US

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Read the attached story

    Mains level: NA

    Ten antiquities (sculptures) retrieved from Australia and the United States were handed over to the Government of Tamil Nadu.

    Some of the returned antiquities, and how they had gone missing:

    (1) Dvarapala:

    • Retrieved in 2020 from Australia, this stone sculpture belongs to the Vijayanagar dynasty dating to the 15th-16th century.
    • He is holding a gada in one hand and has another leg raised up to the level of his knee.
    • The sculpture was burgled from Moondreeswaramudayar Temple, Tiruneveli in1994.

    (2) Nataraja:

    • Retrieved in 2021 from the US, this image of Nataraja, a depiction of Shiva, in his divine cosmic dance form, is in tribhanga posture, standing on the lotus pedestal.
    • It is dateable to the 11th-12th century. Possibly, ananda tandava or the Dance of Bliss is portrayed here.
    • The sculpture was burgled from the strong room of Punnainallur Arulmigu Mariyamman Temple, Thanjavur, in 2018.

    (3) Kankalamurti:

    • Retrieved in 2021 from the US, Kankalamurti is depicted as a fearsome aspect of Lord Shiva and Bhairava.
    • The sculpture is four-armed, holding ayudhas such as damaru and trishula in the upper hands and a bowl and a trefoil shaped object, as a treat for the playful fawn, in the lower right hand.
    • The idol is dateable to the 12th-13th century, and was stolen from Narasinganadhar Swamy Temple, Tirunelveli in 1985.

    (4) Nandikeshvara:

    • Retrieved in 2021 from the US, this bronze image of Nandikeshvara is dateable to the 13th century.
    • It is shown standing in tribhanga posture with folded arms, holding an axe and a fawn in the upper arms, with his forearms in namaskara mudra.
    • This sculpture was stolen from Narasinganadhar Swamy Temple, Tirunelveli, in 1985.

    (5) Four-armed Vishnu:

    • Retrieved in 2021 from the US, dateable to the 11th century, and belonging to the later Chola period.
    • The sculpture has Lord Vishnu standing on a padma pedestal holding attributes such as shankha and chakra in two hands; while the lower right hand is in abhaya mudra.
    • It was stolen from Arulmigu Varadharaja Perumal Temple, Ariyalur, in 2008.

    (6) Goddess Parvati:

    • Retrieved in 2021 from the US, the image depicts a Chola-period sculpture dateable to the 11th century.
    • She is shown holding a lotus in the left hand whereas the right is hanging down near her kati.
    • This sculpture was also stolen from Arulmigu Varadharaja Perumal Temple, Ariyalur in 2008.

    (7) Standing child Sambandar:

    • Retrieved in 2022 from Australia. Sambandar, the popular 7th-century child saint, is one of the Muvar, the three principal saints of South India.
    • The sculpture is dateable to the 11th century.
    • The legend goes that after receiving a bowl of milk from Goddess Uma, the infant Sambandar devoted his life to composing hymns in praise of Lord Shiva.
    • The sculpture displays the saint’s childlike quality, while also empowering him with the maturity and authority of a spiritual leader.
    • It was stolen from Sayavaneeswarar Temple, Nagapattinam, between 1965 and 1975.

     

     

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  • Police Reforms – SC directives, NPC, other committees reports

    What are Mutual Legal Assistance Treaties (MLATs)?

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Mutual Legal Assistance Treaties (MLATs)

    Mains level: Prevention of juvenile crimes

    The CBI is in the process of sending requests to several countries seeking information under the MLATs about those involved in the online sexual abuse of minors and circulation of child pornographic material on social media platforms.

    What are MLATs?

    • The MLATs in criminal matters are the bilateral treaties entered between the countries for providing international cooperation and assistance.
    • These agreements allow for the exchange of evidence and information in criminal and related matters between the signing countries.

    Benefits of Treaty

    • It enhances the effectiveness of participating countries in the investigation and prosecution of crime, through cooperation and mutual legal assistance.
    • It will provide a broad legal framework for tracing, restrain and confiscation of proceeds and instruments of crime as well as the funds meant to finance terrorist acts.
    • It will be instrumental in gaining better inputs and insights in the modus operandi of organized criminals and terrorists.
    • These in turn can be used to fine-tune policy decisions in the field of internal security.

    Enforcing MLATs in India

    • The Ministry of Home Affairs (MHA) is the nodal Ministry and the Central authority for seeking and providing mutual legal assistance in criminal law matters.
    • The Ministry of External Affairs (MEA) may be involved in this process when such requests are routed through diplomatic channels by these Ministries.
    • Section 105 of the Criminal Procedure Code (CrPC) speaks of reciprocal arrangements to be made by the Centre with the Foreign Governments

     

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  • International Space Agencies – Missions and Discoveries

    Chinese astronauts enter Tiangong Space Station

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: Tiangong space station

    Mains level: Not Much

    Three Chinese astronauts floated into the country’s new Tiangong space station for a three-month mission.

    Tiangong Space Station

    • Tiangong means “Heavenly Palace”.
    • It was 10.4 metres long and 3.35 metres wide at its widest point, and weighed 8.6 metric tonnes.
    • It was launched on September 15, 2016 and, in late 2016, hosted two Chinese astronauts for 30 days in what was China’s longest manned space mission so far.
    • The recently decommissioned space lab followed the Tiangong-1, China’s first space station, which crashed into the southern Pacific Ocean on April 1, 2018 after Chinese scientists lost control of the spacecraft.
    • China had launched Tiangong-1 in 2011 as proof-of-concept of technologies for future stations.
    • The Tiangong will be fully operational by the end of 2022.

    Features of this Space Station

    • The significant feature of Tiangong is its two robotic arms.
    • The US has previously expressed concern over its ability to grab objects including satellites from space.
    • The 10-meter-long arm was in action previously seen in action successfully grabbing and moving a 20 tonne Tianzhou-2 cargo ship in a test.
    • One of the noteworthy tasks for the Shenzhou-14 crew is to test and operate the large and small
    • The small arm is quite flexible and can perform operations with greater precision.

     

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  • Innovations in Sciences, IT, Computers, Robotics and Nanotechnology

    What are eVTOL Aircrafts?

    Note4Students

    From UPSC perspective, the following things are important:

    Prelims level: eVTOL Aircrafts

    Mains level: Not Much

    The Union Civil Aviation Ministry is exploring the possibility of inviting manufacturers of Electric Vertical Take-off and Landing (eVTOL) aircraft to set up base in India.

    What is eVTOL?

    • EVTOL aircraft is one that uses electric power to hover, take off, and land vertically.
    • Most eVTOLs also use what is called as distributed electric propulsion technology which means integrating a complex propulsion system with the airframe.
    • There are multiple motors for various functions; to increase efficiency; and to also ensure safety.
    • It works on electric propulsion based on progress in motor, battery, fuel cell and electronic controller technologies.
    • It is also fuelled by the need for new vehicle technology that ensures urban air mobility (UAM).

    Features of eVTOL

    • eVTOL is emerging as a runway independent technological solution” for the globe’s transportation needs.
    • There are an estimated 250 eVTOL concepts or more being fine-tuned to bring alive the concept of UAM.
    • Some of these include the use of multi-rotors, fixed-wing and tilt-wing concepts backed by sensors, cameras and even radar.
    • The key word here is “autonomous connectivity”. Some of these are in various test phases.
    • In short, eVTOLs have been likened to “a third wave in an aerial revolution”; the first being the advent of commercial flying, and the second, the age of helicopters.

    What are the developments in powering eVTOLs?

    • The roles eVTOLs adopt depends on battery technology and the limits of onboard electric power.
    • Power is required during the key phases of flight such as take-off, landing and flight (especially in high wind conditions).
    • There is a “Diamond Nuclear Voltaic (DNV) technology” using minute amounts of carbon-14 nuclear waste encased in layered industrial diamonds to create self-charging batteries.
    • There are some industry experts who are questioning the use of only batteries and are looking at hybrid technologies such as hydrogen cells and batteries depending on the flight mission.

    What are the challenges?

    • As the technology so far is a mix of unpiloted and piloted aircraft, the areas in focus include “crash prevention systems”.
    • There are also issues such as ensuring safety in case of power plant or rotor failure.
    • Aircraft protection from cyberattacks is another area of focus.
    • A third area is in navigation and flight safety and the use of technology when operating in difficult terrain, unsafe operating environments, and also bad weather.

     

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