Monthly Current Affairs April 2020

Easy to PICK301 - “UPSC Monthly Magazine” - April 2020  Patent Cooperation Treaty (1998)  Trademarks  Phonograms Convention (1975)  Copyrights  Nairobi Treaty (1983)  Patents India acceded to all of the above About WIPO: treaties. India was the first country to A global forum for intellectual property ratify the Marrakesh Treaty. policy, services, information and WIPO Publications cooperation is a specialized agency of the  The Global Innovation Index (GII) is United Nations (UN). Member states– 193 a global ranking for countries for Director General– Francis Gurry success in and capacity for innovation. Headquarter– Geneva, Switzerland  It is published by the WIPO in association with Cornell University Key Points : and graduate business school INSEAD.  The index ranks countries based on 80 indicators, ranging from intellectual property filing rates to Research and Development, online creativity, mobile application creation, computer software spending, education spending, scientific & technical publications and ease of starting a business. World Intellectual Property Organisation (WIPO):- The World Intellectual Property Organisation or WIPO is a UN specialised agency created in 1967 to promote intellectual property (IP) protection and encourage creative activity all over the world. WIPO is basically a global forum for IP policy, services, information and cooperation. Is India member of WIPO?  Yes, India is a member of the World Intellectual Property Organisation (WIPO).  India joined the organisation in 1975. What are the 4 types of intellectual property? The four types of intellectual property include:  Trade Secrets

Easy to PICK302 - “UPSC Monthly Magazine” - April 2020 “Reforming Indian Agriculture”-Agriculture reforms Part of: GS Prelims and GS-III- o Economic transformation in Economy-Agriculture developing nations is propelled by India’s agriculture policies have increases in agricultural incomes had multiple mandates, including underpinning industrial growth. For a production imperative (national food example, China's economic growth.  India’s vital land and water resources, security), a consumer imperative (keeping food prices low for a which farmers used for agricultural large low-income population), and a production, assumes more significance farmer welfare imperative (raising especially in the face of mounting farmer’s income). scarcity, environmental degradation, Tensions between these mandates have and climate change. resulted in costly, contradictory policies whose costs have been increasingly borne Actions Taken by Government to by farmers, the government purse, and the Increase Farmer Income natural environment.  Subsidizing Input Costs: Providing Realising the significance of water,power and fertilizer subsidies to Agriculture in India’s socio-economic decrease production costs. order, the government has set an agenda  Green Revolution: Increasing yields of doubling farmer incomesby raising through better farming practices and productivity and cutting down costs, and timely availability of quality inputs, going for diversification towards high especially high yielding seeds, value agriculture. chemical fertilisers and water. However, Indian Agriculture is in the need  Stabilizing Output Prices: Through for many fundamental reforms. minimum support prices (MSP) and public procurement. Significance of Agriculture in India  Augmenting Non-Crop related  Highest Employment Provider: Agriculture Income: KUSUM More Indians depend directly or scheme. indirectly on agriculture for  Providing Direct Income Transfers employment than on any other sector. to Farmers: Pradhan Mantri Kisan  Addresses Malnutrition and Samman Nidhi (PM-KISAN). provides food security: Agriculture Associated Challenges in India’s holds a key to reducing India’s malnutrition problem, directly Agriculture affecting public health and worker Issue Related to Subsidies productivity.  Agricultural subsidies were  Augmenting Economic introduced to incentivise farmers to Growth: Agriculture has the take up the green revolution. Subsidies potential to spur India’s overall gross also intended to reduce the cost of domestic product (GDP) growth production for farmers and to check o Agricultural growth of 4%, would add food price inflation and protect at least a percentage point to GDP, consumers. increase exports and improve India’s  However, today it has become apparent trade deficit. that subsidies are inflicting significant

Easy to PICK303 - “UPSC Monthly Magazine” - April 2020 damage on different aspects of the  The introduction of the electronic economy. national agriculture market (e- NAM)—an online trading platform for o Subsidised Urea has led to massive agricultural commodities in India—is a overuse of nitrogenous fertilisers, step in the right direction. However, its leading to damaged soils and pollution effects have been underwhelming due of local water bodies. to three major bottlenecks: o Similarly, power subsidies have not o Time cost of transactions only led to an alarming overuse of o Quality assessment challenges groundwater,, but also it has severely o Transportation logistics damaged the health of power distribution companies. o Credit subsidies like loan Marginal Land Holdings  Raising farm productivity is critical for waivers have weakened the Indian long-term increase in farmer incomes banking system (due to increased in India, as land fragmentation means that many Indian farmers are farming NPAs), having negative spillover plots of such small sizes that even doubling their incomes would leave effects on the economy. them with meagre earnings. o In India, nearly 85% of agricultural o Output price supports in the form of land holdings are small and marginal (less than 2 hectare). minimum support price (MSP) basically apply to only a handful of crops, especially wheat and rice that are procured by the government in a handful of states. Consumer Oriented Policies Slow Agricultural Growth Rate  The Ashok Dalwai Committee  Whenever there is a price rise in any Reporton doubling farmers’ income, agricultural commodity, estimated that the doubling farmers' the government imposes restrictions income will require an agricultural on exports to protect Indian growth rate of 10-11% per annum, consumers. It creates hindrances for until 2022–23.  However, agricultural growth rate and farmers taking advantage of high farmers' income growth rate has been prices in foreign markets. stagnating and well below the required  This, coupled with the Essential rate of growth. Commodities Act (ECA), has meant Steps to Increase Farmers' Income lower private investment in export infrastructure such as warehouses and cold storage systems.  This lack of storage infrastructure Addressing Subsidies Problem compels farmers to go for Distress  This can be done by: sale. o Freeing up input prices to market levels, or charging an optimum cost Flawed Agricultural Marketing Policies pricing for fertilisers, power, agri-  Due to restrictions imposed credit, and canal waters fees. by Agricultural Produce Market Committee Acts passed by various o Channelizing the resulting savings for states, Indian farmers today can only sell their produce at Farmgate or local expenditures on investments in market (haat) to village aggregators, APMC mandis and to government at agricultural R&D, irrigation, marketing the minimum support price (MSP). infrastructure, building value chains by involving Farmer Producer Organisations (FPOs)and linking

Easy to PICK304 - “UPSC Monthly Magazine” - April 2020 farms to organised retail, food basket. Currently agricultural exports processing, and export markets. constitute 10% of the country’s o Direct income transfers to farmers’ should be promoted by leveraging the exports, but the majority of its exports trinity of Jan Dhan–Aadhaar–Mobile (JAM) to reduce the leakages and are low value, raw or semi-processed, pilferage. and marketed in bulk. Allowing Land Leasing  The share of India’s high value and o The central government, in association value-added agriculture produce is less with the state governments, should free up land lease markets, which can help than 15%. provide farmers with a steady income,  Robust agriculture exports will while maintaining asset security.In remote dry areas, leasing land to solar increase the demand for India’s farm or wind power companies could provide farmers with relatively higher output (and hence, incomes of and steadier incomes. o The Model Land Lease Act, farmers). 2016 offers an appropriate template for  In this context, the government has the states and UTs to draft their own piece of legislations, in consonance launched Agriculture Export Policy with the local requirements and adopt an enabling Act. 2018. It is aimed at doubling the Increasing Avenues for Non-Farm agricultural exports and integrating Income  Subsidised electricity should be Indian farmers and agricultural rationalised, as today solar water products with the global value chains. pumps are operationally and financially sustainable. Investing in Agriculture Infrastructure  This will reduce government burden of electricity subsidies, while at the same  The most sustainable way to augment time allowing surplus power from the farmers’ real incomes over the long solar powered pumps to be sold back to the grid. term is through investments in  Promoting value-added uses of biomass like Bamboo for construction productivity-enhancing areas, and other applications, rice husk and bagasse-based mini-power plants, and ranging from agricultural research ethanol from sugar cane and corn can all help augment farmer incomes in and development (R&D), to sustainable ways while developing more dynamic local rural economies. irrigation to the development of Improving Agricultural Export rural and marketing infrastructure. Scenario  India needs to address the  Local level investments that seek to composition of its agriculture export build village level storage facilities, better surface irrigation management, and investments in drip irrigation, tile drainage, trap crops, etc, that can give results in a relatively short period of time. Agricultural Marketing Reforms  Farmers’ income can improve substantially if they are able to capture a greater share in the supply chain from farm gate to consumer.  For this to happen, farmers must have the freedom to sell what they want, where they want, and when they want without any restrictions on sale, stocking, movement, and export of farm produce.  These will require legal and institutional changes, major

Easy to PICK305 - “UPSC Monthly Magazine” - April 2020 investments in market infrastructure  In this context, the state needs to and storage (including cold-chain adopt Model Agriculture Produce storage), and incentives for the creation and Livestock Marketing Act, 2017. and operation of infrastructure by FPOs. Need For Cooperative Federalism governments work closely together in a  Agriculture is a state subject and spirit of “cooperative federalism many of the important levers—water, power, irrigation, extension, etc—are controlled by the states. However, the central government continues to play a larger role. Thus, reforms can only succeed if the central and state

Easy to PICK306 - “UPSC Monthly Magazine” - April 2020 Industrial revolution 4.0 Part of: GS Prelims and GS-III- period which witnessed the emergence Economy Technology forms the subtext of human of stream engine, textile industry and development. History is loaded with instances of technology serving as catalyst mechanical engineering. in the grand narrative of human development. From basic necessities like  The Second Industrial food, air, water, clothing and shelter, to structural requirements like security Revolution: 1870- 1914. The technology has played a tremendous role in every field of human growth and revolution was about emergence of survival. railways and steel industry.  The Third Industrial Revolution: 1969 – 2000. Electric engine, heavy chemicals, automobiles and consumer durables made their presence felt during this period. This is an ongoing phase of this industrial Invention of the transistor: revolution which has also been called  Around the year 1948 the invention of as Industry 4.0. Developments in the the transistor, a device with potential to have numerous applications in radio oil industry and the IT industry have technology by replacing the vacuum tube, took place. led the initial phase of Industry 4.0. At  The transistor is a resister or semi- conductor device which helps amplify the same time, there are various other electoral signals as they get transferred through it. S&T innovations which are leading the  The presence of the transistor enables all kinds of binary logic operations and progression of this Industrial has brought a revolution to the field of electronics and computing. Revolution. Historical Perspective: Innovations in the field of Medicine:  Invention of Penicillin during 1928 by  Manifestations of various the Scottish scientist Alexander technological developments have Fleming could be considered as the beginning of the modern era of resulted in various industrial medicine. It transformed the field of medicine by its ability to cure revolutions since 17th/18th century infectious bacterial diseases.  The discovery of DNA has totally onwards. revolutionized field of biology and demonstrated that this discovery would  However, during the last few decades, help humans to resolve various challenges beyond medicine. DNA one country that has shown remarkable profiling helps the law enforcement agencies towards solving crimes. progress towards industrialization is  Apart from these important discoveries, the research on the stem China. Countries like Israel and India cell is also an important innovation. Such cells have the unique ability to are known to have made some develop into specialized cell types in the body which could be used to contributions too, with Israel playing a replace cells and tissues that have been damaged or lost due to disease. major role in the realm of technology development.  The main features of these industrial revolutions are as follows:  The First Industrial Revolution: 1760 – 1840. It was a

Easy to PICK307 - “UPSC Monthly Magazine” - April 2020  In addition, various innovations in the of direct digital manufacturing. This organ donation field which assist to would allow object creation by simply replace (repair) eyes, lung, heart, using a digital file which is having the kidney, liver, pancreas or intestine design of the product. have helped human race immensely. Internet of Things: Innovations in the Power Sector:  At the heart of various technological  In the power sector, from nuclear innovations over the years, lies the Internet. This is the single most power to solar power to space based technology which has helped to change the face of the world within a few solar power to biofuels, various clean years.  Internet 2.0 is expected to bring in options have been made available. major changes in the present-day setup of doing various things.  Another interesting technology/method  Development in multiple fields of science and engineering like for energy generation is by using nanoscience, electronics, and sensor technologies are offering new nuclear fusion reactors. opportunities to relate with internet differently.  Presently, much work is happening in  The idea of using internet differently and by using diverse effects (normally the arena of development of nuclear “thing” or “objects” are viewed as any possible items in the real world that fusion reactors. In southern France, could join the communication chain) is expected to upswing to the model of International Thermonuclear Internet of Things (IoT).  Generally, IoT is considered to be Experimental Reactor (ITER) is getting simply a means of connecting different sensors to a network. Ambient developed. This technology, when Intelligence and Cognitive Technologies are anticipated to have a fully operationalized, is expected to major impact on the future of IT. Technologies like Fog computing, change the global energy habits. Distributed computing, Cloud computing, Big Data and Block-chain  A major innovation could happen are expected to impact the future of IoT. when the current nuclear fusion Artificial Intelligence: reactors where the hydrogen isotopes  Artificial Intelligence (AI) is another tritium and deuterium are used as the technology which has been there for many years and is presently found fuel would be replaced by other making a lot of impact on the development cycle in various technology. disciplines.  Issues of ethics do get raised in regard  If helium-3 and deuterium could be to the applicability of AI. used as fuels, then a major revolution in the energy sector is expected.  The helium-3 is not available on the earth’s surface, hence at present few states are undertaking missions to Moon where helium-3 is available in abundance. Innovation in Modern Technology:  For many years one of the best approaches to industrial production was considered as CNC (Computer Numerical Control) machine.  Today, with the developments taking place in the additive manufacturing (AM) sector it is expected that a major change is at the doorstep of global manufacturing processes.  This technology which is commonly known as 3D printing is a mechanism

Easy to PICK308 - “UPSC Monthly Magazine” - April 2020  However, even today, AI is still an Key Points : evolving technology and the scope for AI is varied.  Broadly, it could be argued that AI and Internet 2.0 could decide on the future of the world. Innovations in Space Technology:  Developments in the field of Outer Space have been fascinating.  This is one technological field, which could be said to have made major contribution towards addressing various issues of socio-economic importance.  Voice and data communication in real time and offering accurate inputs for various development aspects and managerial issues has been the key focus of space technologies.  Today communication, navigational remote sensing (earth observational), weather and scientific satellites actually almost fully control humans lives.

Easy to PICK309 - “UPSC Monthly Magazine” - April 2020 Swachhata App and Swachh Bharat Abhiyan Part of: GS Prelims and GS-II- introduced by the Prime Minister, Narendra Modi and was launched on 2nd Governance (PT-MAINS- October 2014 to honor Mahatma Gandhi’s vision of a Clean country. PERSONALITY TEST) Initially, this Swachh Bharat Abhiyan campaign was run on a national level in all The Ministry of Housing and Urban the towns, rural and urban areas. Affairs (MoHUA) has launched a revised Swachh Bharat Abhiyan Objective The major objective of the Swachh Bharat version of the existing Swachhata- Abhiyan is to spread the awareness of cleanliness and the importance of it. MoHUA App to handle queries specific The concept of Swachh Bharat Abhiyan is to provide the basic sanitation facilities to Covid-19. like toilets, solid and liquid waste disposal systems, village cleanliness and  Swachhata-MoHUA is the official safe and adequate drinking water supply to each and every person. platform for Swachh Bharat Swachh Bharat Abhiyan Action Plan Mission built in partnership with the The action plan for the Swachh Bharat Abhiyan is to be laid by the Ministry of Ministry of Housing and Urban Drinking Water and Sanitation. The vision is to triple the facility of sanitation by Affairs. 2019. The major change to be implemented is in the Making of an Open  The app enables a citizen to post a Defecation Free(ODF) India. civic-related issue (eg; a garbage Action Plan Highlights:  Improve the growth percentage of dump, public toilets not cleaned, etc.) toilets from 3% to 10% by 2019 which is then forwarded to the city  Increase in the construction of toilets corporation concerned and thereafter from 14000 to 48000 daily  Launch of a National Level/State Level assigned to the sanitary inspector of the Media campaign through audio visual, particular ward. mobile telephony and local programmes to communicate the  It serves as an effective digital tool (e- message of awareness.  Involvement of school children in the governance) enabling citizens to play activities for spreading awareness on Water, Sanitation and Hygiene. an active role in the Swachhata of their Swachh Bharat Mission (Urban) cities and increase accountability on  Coming to Swachh Bharat Mission the part of Urban Local Bodies (Urban), it is under the Ministry of Urban Development and is (ULBs).  The revised version includes Covid- 19 related support requests including fogging/sanitation, food, shelter and reporting violation of quarantine/lockdown, suspected cases of Infection. Swachh Bharat Abhiyan Prime Minister of India Narendra Modi received the award of “Global Goalkeeper” from the Gates Foundation for the initiative of Swachh Bharat Abhiyan on September 25, 2019 in New York. What is Swachh Bharat Abhiyan? Swachh Bharat Abhiyan is one of the most popular and significant missions in the History of India. This campaign was

Easy to PICK310 - “UPSC Monthly Magazine” - April 2020 commissioned to give sanitation and Panchayats open defecation free by household toilet facilities in all 4041 October 2, 2019. statutory towns with a combined  Removing obstacles and addressing population of 377 million. critical issues that affect results is the  The estimated cost is Rs 62,009 crore new thrust of this rural sanitation over five years with the centre’s share mission, which aims to provide all of assistance being Rs 14,623 crore. rural households with individual  The Mission hopes to cover 1.04 crore latrines; and build cluster and households, give 2.5 lakh community community toilets on public-private toilet seats, 2.6 lakh public toilet seats partnership mode.  It also purposes to establish solid waste  Considering the filth and unhygienic management facilities in every town. conditions in village schools, this programme lays special emphasis on At the core of this mission lie six toilets in schools with basic sanitation components: amenities. 1. Individual household toilets;  Construction of Anganwadi toilets and 2. Community toilets; management of solid and liquid waste 3. Public toilets; in all Village Panchayats is the object 4. Municipal Solid Waste Management; of the Clean India mission. 5. Information and Educating Ranking of cities Communication (IEC) and Public Every year, cities and towns across India Awareness; are awarded with the title of ‘Swachh 6. Capacity Building Cities’ on the basis of their cleanliness and sanitation drive as a part of the Swachh  The Urban Clean India mission seeks Bharat Abhiyan that was launched in 2014. to eradicate open defecation; convert insanitary toilets to flush toilets; Highlights eradicate manual scavenging, and  Indore in Madhya Pradesh is India’s facilitate solid waste management. cleanest city and Gonda in Uttar  The mission emphasizes on ushering in Pradesh the filthiest a behavioral change among people,  Out of 10 cleanest cities, 2 are from with respect to healthy sanitation Madhya Pradesh, Gujarat and Andhra practices, by educating them about the Pradesh each while Karnataka, Tamil damaging effects of open defecation, Nadu, Delhi and Maharashtra each the environmental dangers spreading have one from strewn garbage, and so on.  Out of 10 dirtiest cities, Uttar Pradesh has 5 cities, 2 each from Bihar and  To achieve these objectives, urban Punjab and one of Maharashtra local bodies are being brought in and  118 out of 500 cities were found to be fortified to design, implement and Open Defecation Free (ODF) operate systems in order to promote a  297 cities have 100% door to door facilitating environment for the collection of garbage participation of the private sector in  37 lakh citizens showed interest in terms of both capital and operations Swachh Surveksan expenditure.  There are 404 Cities where 75% of residential areas were found Swachh Bharat Mission (Rural) substantially clean  The Rural mission, known as Swachh Bharat Gramin, aims to make Village

Easy to PICK311 - “UPSC Monthly Magazine” - April 2020  Gujarat has maximum of 12 cities funds to achieve the objective of Clean among the top 50 cleanest, followed by India (Swachh Bharat) by the year 2019. Madhya Pradesh with 11 and Andhra The Kosh will be used to achieve the Pradesh with eight objective of improving cleanliness levels in rural and urban areas, including in According to the survey among top 50 schools. The allocation from the Kosh will clean cities: be used to supplement and complement departmental resources for such activities.  Gujarat has a maximum of 12 cities To incentivise contributions from followed by individuals and corporate, modalities are being considered to provide tax rebates  Madhya Pradesh with 11 and where it is possible.  8 in Andhra Pradesh Rural Sanitation Strategy: 2019-2029 SBM – Facts Recently, the Department of Drinking Under the Swachh Bharat Mission, it has Water and Sanitation (DDWS) under the been decided to undertake a special clean- Ministry of Jal Shakti has launched the 10- up initiative focused on 100 iconic year Rural Sanitation Strategy starting heritage, spiritual and cultural places in from 2019 up to 2029. the country.  The aim of this initiative is to make  The strategy has been prepared by these 100 places model ‘Swachh DDWS, in consultation with the State Tourist Destinations’, that will enhance the experience for visitors Governments and other stakeholders. from India and abroad.  It lays down a framework to guide Swachh Vidyalaya Abhiyan The Ministry of Human Resource local governments, policy-makers, Development has launched Swachh Vidyalaya Programme under Swachh implementers and other relevant Bharat Mission with an objective to provide separate toilets for boys and girls stakeholders in their planning in all government schools within one year. The programme aims at ensuring that for Open Defecation Free (ODF) every school in the country must have a set of essential interventions that relate to both Plus status, where everyone uses a technical and human development aspects of a good Water, Sanitation and Hygiene toilet, and every village has access to Programme. The Ministry financially supports solid and liquid waste management. States/Union Territories inter alia to provide toilets for girls and boys in schools  The strategy aims to sustain the under Sarva Shiksha Abhiyan (SSA) and Rashtriya Madhyamik Shiksha Abhiyan behavioral change regarding (RMSA). sanitation that has been achieved under Rashtriya Swachhata Kosh The Swachh Bharat Kosh (SBK) has been the Swachh Bharat Mission set up to facilitate and channelize individual philanthropic contributions and Grameen(SBM-G) and ensure that Corporate Social Responsibility (CSR) the focus is shifted to increasing access to solid and liquid waste management in the rural areas of the country.  The 10-year strategy also demands focused intervention through capacity strengthening, IEC (Information, Education, and Communication), organic waste management, plastic waste management, and water management.  Public financing has played an important role in the ODF journey but

Easy to PICK312 - “UPSC Monthly Magazine” - April 2020 for the maintenance of toilets and Way Forward infrastructure, the need is there for  It is because of the SBM-G that India innovative models for sanitation financing. is now an inspiration, in terms of o With regard to waste management sanitation for other countries. elements, there will have to be  To mark the 150th birth anniversary of a convergence of funds from the Mahatma Gandhi on 2nd October 2019, Centre, states, Panchayati raj the Central government is ready to institutions (PRIs) and alternative dedicate a Swachh Bharat to India. sources of financing, including private funds. o To ensure this, the State Governments o Discussions are still underway on the have been advised to take a note that budget requirement and whether funds no one is left behind, and in case any will be disbursed via a centrally household does not have access to a sponsored scheme or through Finance toilet, they are facilitated to build a Commission transfers to PRIs. toilet on priority. o The strategy highlights the potential collaborations with development Key Points : partners, civil society and intergovernmental partnerships. Open Defecation Free (ODF), ODF+, ODF++ Status  ODF: An area can be notified or declared as ODF if at any point of the day, not even a single person is found defecating in the open.  ODF+: This status is given if at any point of the day, not a single person is found defecating and/or urinating in the open, and all community and public toilets are functional and well maintained.  ODF++: This status is given if the area is already ODF+ and the faecal sludge/septage and sewage are safely managed and treated, with no discharging or dumping of untreated faecal sludge and sewage into the open drains, water bodies or areas. India has seen a sanitation revolution in the form of SBM-G that transformed itself into a Jan Andolan (a people’s movement).Since the launch of the SBM- Gin 2014, over 10 crore toilets have been built in rural areas. Till now, over 5.9 lakh villages in 699 districts and 37 States/UTs have declared themselves as Open Defecation Free (ODF).

Easy to PICK313 - “UPSC Monthly Magazine” - April 2020 NBFCs Face Moratorium Issue with Banks Part of: GS Prelims and GS-III- January 31,2020 showing a rise of 32.2 per cent on a year-on-year basis. Economy-Bank (PT-MAINS- o Collections from customers have declined due to the lockdown, closure PERSONALITY TEST) of units and job losses. o Almost 60% of NBFC Non-Banking Financial Companies borrowings are from non-bank (NBFCs) may face a tough time following sources and require continuity in debt the Reserve Bank of India’s recent servicing. directive on providing a moratorium on o With minimal collections, NBFCs can repayment. only depend on their cash reserves  This is because though these entities and any backup credit lines from banks, if available for servicing such are providing moratoriums to their debt. customers, they still have to continue o Debt service is the cash that is required repaying banks and other borrowers. to cover the repayment of interest and principal on a debt for a particular Important period.  Banks are not willing to offer any  Reserve Bank of India’s (RBI) Move o The RBIhas made available Rs 1 lakh moratorium on term loans taken by crorethrough its targeted long-term the NBFCs. This has put significant repo operations(TLTRO) window. pressure on liquidity profiles of many  Corporates and government-owned NBFCs. financiers will also be interested in this o A significant part of money disbursed window. by NBFCs is loan taken from banks.  Only higher rated NBFCs may end up o Moratorium simply refers to a legal benefiting. authorisation to existing borrowers to o Industry chamber Assocham has defer or postpone their loan proposed a special liquidity window repayments for a predetermined period. for NBFCs, but the RBI has not shown  The Reserve Bank of India (RBI) had any inclination so far. asked banks, co-operative banks and NBFCs to offer a three-month Non-Banking Financial Company moratorium on loan repayments by  NBFC is a company registered under their customers in the wake of the Covid-19 pandemic and the the Companies Act, 1956. nationwide lockdown.  It is engaged in the business of loans o The RBI has not specifically said NBFCs should not be given and advances, acquisition of moratorium by banks. shares/stocks/bonds/debentures/secu o While a few banks are inclined to offer rities issued by Government or local moratorium on NBFC loans, some of authority or other marketable the big banks have ruled out any such securities of a like nature, leasing, facility. hire-purchase, insurance business, chit  The NBFCs have already been facing business. liquidity problems due to the  But, it does not include any institution the IL&FS and DHFL crises. whose principal business is that  Total bank loan outstandings to Non- of agriculture activity, industrial Banking Financial Company(NBFC) sector were Rs.7,37,198 crore as of

Easy to PICK314 - “UPSC Monthly Magazine” - April 2020 activity, purchase or sale of any Key Points : goods (other than securities) or providing any services and sale/purchase/construction of immovable property.  A non-banking institution which is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments by way of contributions or in any other manner, is also a non- banking financial company (Residuary non-banking company). Features of NBFCs  NBFC cannot accept demand deposits.  NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.  Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs.

Easy to PICK315 - “UPSC Monthly Magazine” - April 2020 COVID-19 and EPFO Part of: GS Prelims and GS-III- 2. Partial withdrawals allowed for education, marriage, illness and house ECONOMY-EPFO (PT-MAINS- construction PERSONALITY TEST) 3. Housing scheme for EPFO members to achieve Prime Minister’s vision of EPFO processes around 1.3 lakh claims, Housing for all by 2022. disburse to help fight corona to subscriber Employees Provident Fund Organization, 2. Pension Scheme 1995 (EPS) EPFO, has processed about 1.37 lakh Salient features of the Pension Scheme claims disbursing 279.65 crore rupees 1. The monthly benefit for under a new provision to help subscribers fight COVID-19. This superannuation/benefit, disability, provision especially formulated by survivor, widow(er) and children amending the EPF Scheme. The 2. Minimum pension of disablement remittances of the money have already 3. Past service benefit to participants of started taking place. The system as it the erstwhile Family Pension Scheme, stands today is processing all applications 1971. which are fully KYC compliant within less than 72 hours. 3. Insurance Scheme 1976 (EDLI) The provision for a special withdrawal Salient features of the scheme from the EPF Scheme to fight COVID-19 1. The benefit provided in case of death pandemic is part of the Prime Minister's Garib Kalyan Yojana announced by the of an employee who was a member of government. EPFO is also accepting the the scheme at the time of death. date of birth recorded in the Aadhaar card 2. Benefit amount 20 times the wages, of a subscriber as a valid proof for maximum benefit of 6 Lakh. rectification of the date of birth in PF EPFO is the largest social security records. organisation in the world in terms of the number of covered beneficiaries and the What is EPFO? largest in terms of the volume of financial Employee Provident Fund Organisation transactions undertaken. On 1st October (EPFO) was established by an act of 2014, Prime Minister launched Universal Parliament of India, to provide social Account Number for Employees covered security to workers working in India. It by EPFO to enable PF number portability. came into force by Employee Provident Fund and Miscellaneous Provision Act, Organisation Structure 1952. EPFO comes under the control of 1. The organisation is divided into zones the Ministry of Labour and Employment, Government of India. which are headed by an Additional Central Provident Fund Commissioner. There are 3 major schemes of EPFO 2. At present, there are 10 Zones across 1. EPFO Scheme 1952 the country. Salient features of EPFO schemes 3. States have one or more than one 1. Accumulation plus interest upon regional offices headed by Regional Provident Fund Commissioners (Grade retirement and death I) 4. Regions are subdivided into Sub- Regions headed by Regional Provident Fund Commissioners (Grade II)

Easy to PICK316 - “UPSC Monthly Magazine” - April 2020 5. Districts have a district office contribution to PF. Provident Fund has 2 components. One is the Employees part Active members: and the second is the employers part. 1. Currently, there are approximately 4.5 Currently, the Employees contribution and Employers Contribution to PF stands at crores, active members, under EPFO 12% of the Basic Salary. As per the 2. There are approximately 65 Lakh proposed Bill, which will be tabled in the Parliament; Employees will be given the Pensioners option of reducing their contribution to PF. This is being done to increase the take- Recently Steps were taken by the EPFO home salary of Millions of employees in to facilitate efficient services the Organised sector in order to boost the Online facilities provided by the EPFO for consumption and therefore arrest the the following processes decline in the economy. 1. Nominations 2. Ascertaining balances Salient Features of the Social Security 3. Settling claims Code Bill 2019 4. File online cases by members 1. Reduce Employees contribution to PF. UAN (Universal Account Number) 2. Employers contribution to PF to It is a 12 digit number allotted to an employee working in an organisation. If a remain at 12% person has multiple member ID’s issued 3. Fixed-term contract workers will be by multiple organisations, all the ID’s will come under one single UAN number eligible for gratuity on a pro-rata basis, which will be the same for a lifetime. This currently, workers are not entitled to number will not change even when an gratuity before completing 5 years of employee changes his organisation. continuous service as prescribed in the The various benefits attained due to UAN. Payment of Gratuity Act, 1972. 4. Proposes to set up Social Security 1. Reduces confusion of multiple ID’s Fund under using corpus under and will have one single UAN number Corporate Social Responsibility. This fund will provide benefits such as a 2. Easy transfer and withdrawal of claims pension, medical cover, death and 3. Online-pass book disablement benefits to all workers, 4. SMS services including gig workers. 5. Online KYC update 5. Firms with 10 or more employees will 6. Download UAN EPF book have to provide health, pension and 7. Check EPF balance online other benefits. 6. Flexibility for procuring compulsory Number of new enrolments insurance from IRDA 1. During 2018-19, approximately 61 7. To better Ease of Doing Business, there will be Single Registration and Lakh new subscribers joined the social Single return for employers. security schemes run by EPFO. 8. EPFO and ESIC to continue as 2. During September 2017 – September autonomous bodies 2019, around 2.85 crore new subscribers joined the EPF scheme. Social Security Code Bill 2019 subsumes 8 Central Labour Laws Social Security Code Bill 2019 1. Employees Compensation Act, 1923 The Bill will be tabled in the Parliament in 2. Employees State Insurance Act, 1948 the 2nd week of December 2019. This Bill is being proposed by the Ministry of Labour, to reduce the Employees

Easy to PICK317 - “UPSC Monthly Magazine” - April 2020 3. Employees Provident Funds and allowance) to the Employees’ Miscellaneous Act, 1952 Provident Fund (EPF) scheme. o EPF scheme is mandatory for 4. Maternity Benefit Act, 1961 employees who draw a basic wage of 5. Payment of Gratuity Act, 1972. Rs. 15,000 per month. 6. Cine Workers Welfare Fund Act, 1981 o Of the employer's share of 12 %, 8.33 7. Building and other Workers Cess Act, % is diverted towards the EPS. o Central Govt. also contributes 1.16% 1996 of employees’ monthly salary. 8. Unorganised Workers’ Social Security Key Points : Act, 2008. PT PICKSUP Employees’ Provident Fund Organisation (EPFO)  It is a government organization that manages provident fund and pension accounts of member employees and implements the Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 which is applicable to whole of India with exemption given only to Jammu & Kashmir. o The Employees’ Provident Fund and Miscellaneous Provisions Act, 1952 provides for the institution of provident funds for employees in factories and other establishments.  It is administered by the Ministry of Labour & Employment, Government of India.  It is one of the World's largest Social Security Organisations in terms of clientele and the volume of financial transactions undertaken. Employees Pension Scheme (EPS):  It is a social security scheme that was launched in 1995.  The scheme, provided by EPFO, makes provisions for pensions for the employees in the organized sector after the retirement at the age of 58 years.  Employees who are members of EPF automatically become members of EPS. o Both employer and employee contribute 12% of employee’s monthly salary (basic wages plus dearness

Easy to PICK318 - “UPSC Monthly Magazine” - April 2020 COVID-19 and World reports Part of: GS Prelims and GS-III- in the global economy, caused by Economy (PT-MAINS-PERSONALITY TEST) disruptions in global supply chains, travel and tourism, and lockdowns in many economies. 1. Asia Development Bank assures India The report suggests that while efforts are 2.2 billion support to fight being mounted on a war footing to arrest COVID:Asian Development Bank today its spread, COVID-19 would impact assured India of 2.2 billion US dollar economic activity in India directly through support to fight against the COVID-19 domestic lockdown. Second round effects pandemic.The financial support of about would operate through a severe slowdown 16,500 crore rupees. In a call, Asakawa in global trade and growth. It also says that commended the Indian Government's the lockdown is expected to significantly decisive response to the pandemic, lower aggregate demand in both rural and including a National Health Emergency urban areas. programme. He commended tax and other relief measures provided to businesses. 3. Global Trade growth expected to plummet as per WTO ADB President also appreciated 1.7 lakh The World Trade Organisation today said that global trade growth is expected to crore rupees economic relief package to plummet by up to a third in 2020 due to the Coronavirus pandemic. It has warned provide immediate income and that the numbers would be ugly and world trade is expected to fall by between 13 consumption support to the poor, women, percent and 32 percent in 2020 as the COVID-19 pandemic disrupts normal and workers affected by the nationwide economic activity and life around the world. WTO said in a statement that there lockdown. were a wide range of possibilities for how trade would be hit by the unprecedented ADB in a statement said that weakening health crisis. However, WTO chief Roberto Azevedo warned the downturn global economic growth is causing may well be the deepest economic recession or downturn of our lifetimes. disruptions in India's trade and 4. World banks report predicts India’s manufacturing supply chains, along with growth at 1.5 to 2.8% in FY 21 ,slowest since economic reform 30 years ago. the slowdown in tourism and other India is likely to record its worst growth performance since the 1991 liberalisation economic activities. ADB said, it is also this fiscal year as the coronavirus outbreak severely disrupts the economy. engaged with the private sector to meet its India’s economy is expected to grow 1.5% to 2.8% in the 2020-21 fiscal which started financing needs during this period. on April 1, the World Bank said in its South Asia Economic Focus report. On 18th of March, ADB announced an initial package of approximately 6.5 billion US Dollars to address the immediate needs of its developing member countries, including India, as they respond to the COVID-19 pandemic. 2. Global economy is expected to go in recession - RBI REPORT In its latest Monetary Policy report, the Reserve Bank of India - RBI has stated that the global economy is expected to go into recession after taking into account the impact of the COVID-19 pandemic. It also says that aggregate demand is expected to be impacted adversely by likely recession

Easy to PICK319 - “UPSC Monthly Magazine” - April 2020 It estimated India will grow 4.8% to 5% in Key Points : the 2019-20 fiscal that ended on March 31. The COVID-19 outbreak came at a time when India’s economy was already slowing due to persistent financial sector weaknesses, the report said. To contain it, the government imposed a lockdown, shutting factories and businesses, suspending flights, stopping trains and restricting mobility of goods and people. “The resulting domestic supply and demand disruptions (on the back of weak external demand) are expected to result in a sharp growth deceleration in FY21 (April 2020 to March 2021),” it said, adding that the services sector will be particularly impacted. PT PICKSUP Asian Development Bank (ADB)  The Asian Development Bank (ADB) is a regional development bank established on 19 December 1966.  ADB is headquartered in Manila, Philippines. It aims to promote social and economic development in Asia.  ADB now has 67 members, of which 48 are from within Asia and the Pacific and 19 outside.  Japan holds the largest proportion of shares in ADB followed by the USA.

Easy to PICK320 - “UPSC Monthly Magazine” - April 2020 COVID-19 and Corporate Social Responsibility (CSR) Part of: GS-III- Economy (PT-MAINS- framework to identify potential CSR PERSONALITY TEST) activities.  The CSR provisions within the Act is The Ministry of Commerce and Industry applicable to companies with an annual has clarified that the contributions to the turnover of 1,000 crore and more, or Chief Minister’s Relief Fund or the State a net worth of Rs. 500 crore and relief fund will not qualify as Corporate more, or a net profit of Rs. 5 crore Social Responsibility (CSR)expenditure, and more. while any donation to the PM CARES  The Act requires companies to set up Fundwill. a CSR committee which shall recommend a Corporate Social Important Points Responsibility Policy to the Board of  The Chief Minister’s Relief Fund or Directors and also monitor the same from time to time. State Relief Fund for Covid-19 is not  The Act encourages companies to included in Schedule VII of spend 2% of their average net profit the Companies Act, 2013, and in the previous three years on CSR therefore any contribution to such activities. funds shall not qualify as admissible  The indicative activities, which can be CSR expenditure. undertaken by a company under CSR, o Schedule VII of the Companies Act, have been specified under Schedule 2013 provides the list of activities that VII of the Act. The activities include: can be included in CSR. o Eradicating extreme hunger and  Some political parties criticised this poverty, saying it is discriminatory and o Promotion of education, gender goes against the constitutional equality and empowering women, principle of federalism. o Combating Human Immunodeficiency  However, donations to the State Virus, Acquired Immune Deficiency Disaster Management Authorityto Syndrome and other diseases, combat Covid-19 can be counted as o Ensuring environmental sustainability; admissible CSR expenditure. o Contribution to the Prime Minister's National Relief Fund or any other fund Corporate Social Responsibility set up by the Central Government for  The term \"Corporate Social socio-economic development and relief and funds for the welfare of the Responsibility\" in general can be Scheduled Castes, the Scheduled referred to as a corporate initiative to Tribes, other backward classes, assess and take responsibility for minorities and women etc. the company's effects on the environment and impact on social PM CARE FUND: The Fund is a public welfare.  In India, the concept of CSR is charitable trust with the Prime governed by clause 135 of the Companies Act, 2013. Minister as its Chairman. Other  India is the first country in the world to mandate CSR spending along with a Members include Defence Minister, Home Minister and Finance Minister.The

Easy to PICK321 - “UPSC Monthly Magazine” - April 2020 Fund enables micro-donations as a result of which a large number of people will be able to contribute with the smallest of denominations.The Fund will strengthen disaster management capacities and encourage research on protecting citizens. Key Points :

Easy to PICK322 - “UPSC Monthly Magazine” - April 2020 Cognitive Science Research Initiative and SATYAM-Yoga Part of: GS-III- S&T - Health (PT- improving respiratory systems and MAINS-PERSONALITY TEST) interventions to overcome respiratory disorders and other dimensions like Recently, the Department of Science and stress, anxiety and depression-related issues due to isolation, uncertainty and Technology (DST) has initiated disruption in normal life. Science and Technology of Yoga and the Science and Technology of Yoga and Meditation Programme  It was conceptualized in 2015 by the Meditation (SATYAM) DST under its Cognitive Science Research Initiative (CSRI). programme.Under SATYAM, DST  Aims: To foster scientific research on the effects of yoga and meditation on has invited proposals to study physical & mental health and on cognitive functioning in healthy people appropriate intervention of yogaand as well as in patients with disorders.  Themes: meditation in fighting Covid-19and o Investigations on the effect of Yoga and Meditation on physical and mental similar kinds of viruses. health and well being. o Investigations on the effect of Yoga Aim: and Meditation on the body, brain, and mind in terms of basic processes and To provide assistance to society in mechanisms. today’s critical condition arising due to  Eligibility: o Scientists/academicians with research pandemic Covid-19. background in ‘Yoga and Meditation’ and having regular This is a need-based call, therefore, positions are invited to participate in this initiative. proposed work should be completed within o Practitioners actively involved in yoga and meditation practices are 6-12 months. also encouraged to apply in collaboration with academic and  Dimensions of Covid: Covid-19 research institutions of repute.  Project Duration: The project is usually has three dimensions, related tenable for a maximum period of three years. to: Cognitive Science Research Initiative o Stress (worry, sitting at home).  DST initiated this as a highly focused o Respiratory. programme in 2008 during the 11th Five year plan. o Immune system.  Scientific Investigation: The effects of yoga and meditation on the life of a person during such stressful times have to be scientifically investigated. o Sometimes, there is an empirical correlation in the actions and the outcome, but it needs to be understood scientifically.  Modern Tools: All the participants are expected to work together using the modern tools of life science and bio- sciences to understand what works and what does not. o If something works then what is the efficacy and in what conditions does it work.  Holistic Target: The project may address improving immunity,

Easy to PICK323 - “UPSC Monthly Magazine” - April 2020  The DSRI facilitates a platform to the Key Points : scientific community to work for better solutions of challenges related with cognitive disorders and social issues through various psychological tools & batteries, early diagnosis & better therapies, intervention technologies and rehabilitation programmes.  Aim: o To foster scientific research in the interdisciplinary field of Cognitive Science for better understanding of Indian mind sets, languages and cognitive disorders etc.  CSRI revolutionizes research in various fields, such as: o Nature and origins of mental disorders, of physiological, social and neuro- chemical origins. o Design of better learning tools and educational paradigm. o Design of better software technologies and artificial intelligence devices. o Streamlining of social policy formulation and analysis.  Activities Supported under CSRI: o Individual R&D Projects. o Multi-centric Mega Projects. o Post Doctoral Fellowship. o Support for Schools, Training, Workshops, Conferences, etc.

Easy to PICK324 - “UPSC Monthly Magazine” - April 2020 Renewable Energy Certificates (RECs) Part of: GS-III- Energy/power (PT- Exchange (IEX) and Power MAINS-PERSONALITY TEST) Exchange of India (PXIL).  The price of RECs is determined by Recently, sales of Renewable Energy market demand, and contained Certificates (RECs) rose over 79 % to 8.38 lakh units in March compared to 4.68 between the ‘floor price’ (minimum lakh in the same month a year ago owing to good supply. price) and ‘forbearance price’ (maximum price) specified by the Central Electricity Regulatory Commission (CERC). Imp Points  Renewable Energy Certificates Central Electricity Regulatory Commission (CERC). (RECs) is a market-based instrument  CERC is a regulator of the power to promote renewable sources of sector in India.  It intends to promote competition, energy and development of the efficiency and economy in bulk market in electricity. power markets, improve the quality of supply, promote o One REC is created when one investments and advise the government on the removal of megawatt hour of electricity is institutional barriers to bridge the demand supply gap. generated from an eligible renewable  It is a statutory body functioning with quasi-judicial status under the energy source. Electricity Act 2003.  REC acts as a tracking mechanism for solar, wind, and other green energies as they flow into the power grid.  RECs go by many names, including Green tag, Tradable Renewable Certificates (TRCs), Renewable Electricity Certificates, M-Sand or Renewable Energy Credits.  In three months, the TN State government will put in place an M-  Under Renewable Purchase sand policy that aims to promote the use of M-sand as an alternative Obligation (RPO) bulk purchasers like building material. discoms, open access consumers and  It is aimed to eliminate the pervasion of sub-standard products in the market capacitive users are required to buy a through regulation of trade. certain proportion of RECs. They can buy RECs from renewable energy producers. o RPO was instituted in 2011, it is a mandate that requires large power Manufactured sand (M-Sand)  M-sand is a substitute of river sand for procurers to buy a predetermined concrete construction. fraction of their electricity from  Manufactured sand is produced from renewable sources. hard granite stone by crushing.  The crushed sand is of cubical shape  The proportion of renewable energy with grounded edges, washed and for utilities is fixed by the central and graded to as a construction material.  The size of manufactured sand (M- state electricity regulatory Sand) is less than 4.75mm. commissions.  In India, RECs are traded on two power exchanges — Indian Energy

Easy to PICK325 - “UPSC Monthly Magazine” - April 2020 Why use M-sand? Key Points :  Manufactured sand is an alternative for river sand.  Due to fast growing construction industry, the demand for sand has increased tremendously, causing deficiency of suitable river sand in most part of the word.  Due to the depletion of good quality river sand for the use of construction, the use of manufactured sand has been increased.  Another reason for use of M-Sand is its availability and transportation cost.  Since manufactured sand can be crushed from hard granite rocks, it can be readily available at the nearby place, reducing the cost of transportation from far-off river sand bed.  Thus, the cost of construction can be controlled by the use of manufactured sand as an alternative material for construction.  The other advantage of using M-Sand is, it can be dust free, the sizes of m- sand can be controlled easily so that it meets the required grading for the given construction.  Usage of M-sand prevents dredging of river beds to get river sand which may lead to environmental disaster like ground water depletion, water scarcity.

Easy to PICK326 - “UPSC Monthly Magazine” - April 2020 Rural Industries – MSME ACT – MGNREGA Part of: GS-III- Energy/Industries (PT- Small Scale Industries and Cottage MAINS-PERSONALITY TEST) Industries- Comparison  Small scale industries and cottage Rural industrial activities can be divided into the following three categories: industries slightly differ depending 1. small-scale cottage activities, upon their features, location and 2. medium-scale village enterprises, and ownership. 3. large-scale rural industries.  Small scale industries are mostly located in urban and semi-urban areas This classification can be carried out on whereas cottage industries are more the basis of the following criteria: concentrated in rural areas. Location; ownership; labour source and  Small scale industries are slightly organization; complexity of technology larger and hire employees to work but used; scale of production; regularity of cottage industries are mostly run by production ; form of organization; members of the family. flexibility of energy source and use.  Cottage industries are not mass producers it mainly focuses on meeting Cottage Industries: the local needs. Small scale industry Cottage industry is a concentrated form of focuses and covers a wider range of small scale industry that can be started product and areas. with very low investments. Cottage  Cottage industry involves very low industry is generally unorganized and the investments as it uses basic tools and production of goods takes place in the conventional methods for production. houses of labourers using conventional Small scale industry uses full equipped methods. The cottage industry has its machinery and their investments range origin in rural areas where unemployment from 60 lakhs to 3crores. and underemployment are prevalent. It  Small scale businesses are well helps the Indian economy by involving the organised and run by professionals other unemployed workforce of rural however cottage industries are areas. To work towards the development unorganised. of Cottage and small scale industries, the government of India has set up numerous Types of Cottage Industries In India agencies like Khadi and Village Industries  Cotton Weaving: It is the most Commission, All India Handicrafts Board, AH India-Handloom Board, and Central important cottage industry in India as Silk Board, etc. To provide service and cotton clothes are widely worn across support to cottage industries at district the country. It is mainly concentrated level the government has set up District in Maharashtra, Tamil Nadu, and industries centres. In a nutshell, Cottage Gujarat. The vibrant colour, traditional industry brings in the economic designs, variety of patterns increases development of any local geographical the demand for cotton clothes in the area and gradually the nation as a whole country. and hence it is important to support and encourage its existence.  Silk Weaving: India is a major producer and exporter of silk. 70% of the total silk weaving industries is situated in Karnataka. Mulberry,

Easy to PICK327 - “UPSC Monthly Magazine” - April 2020 Tassore, Muga, and Eri are the  As most of the cottage industries are different types of silks produced in the located in rural areas, the country. implementation of modern marketing strategies is difficult.  Carpet Making: The origin of the carpet making industry dates back to  The availability of raw materials is the Mughal era. It is mainly found in limited to specific seasons and it Kashmir, Rajasthan, Punjab, Uttar decreases with time. Pradesh, Andhra Pradesh, and Punjab. Kashmiri carpet, durries and coir The Micro, Small and Medium carpet are in great demand owing to its superior quality and texture. The Enterprises Development (Amendment) Carpet export council has been set up by the Indian government for Bill, 2018 promoting the knotted rugs and various other types of floor coverings from  The Micro, Small and Medium across the country. Enterprises Development  Leather Works: The regions of India famous for leather production are (Amendment) Bill, 2018 was Tamil Nadu, West Bengal, and Uttar Pradesh. India is the major supplier of introduced in Lok Sabha by the high-quality leather and meets around 10% of the global leather demands. Minister of State for Micro, Small and  Metal Works: Indian metal Medium Enterprises, Mr. Giriraj Singh handicrafts are appreciated worldwide and it is a major contributor to the on July 23, 2018. The Bill amends the Indian economy Micro, Small and Medium Enterprises Challenges Faced By Indian Cottage Industry Development Act, 2006. The Act  Cottage industry faces competition classifies and regulates enterprises as from medium and large industries which uses high-end technologies for micro, small and medium enterprises. production.  There is an urgent need for the  The Act classifies micro, small and implementation of modern technology medium enterprises (MSMEs) on the which not only enhances productivity basis of investment in: (i) plant and but also develops skills of the machinery, for enterprises engaged in labourers to meet the requirements of the manufacturing or production of the local market. goods, and (ii) equipment, for enterprises providing services.  The Bill introduces a uniform classification for all MSMEs. Under the Bill, all MSMEs, whether they are manufacturing or service-providing enterprises, will be classified on the basis of their annual turnover. The changes in the classification of MSMEs are given in Table 1. Table 1: Classification of enterprises as micro, small and medium enterprises (in Rs) Type 2006 Act Services 2018 Bill Enterprise of Manufacturing and Investment All Plant Equipment enterprises Investment in in Annual Machinery Turnover

Easy to PICK328 - “UPSC Monthly Magazine” - April 2020 Micro 25 lakh 10 lakh 5 crore Small 25 lakh to 10 lakh to Medium 5 crore 2 crore 5 to 75 crore 5 to 10 crore 2 to 5 crore 75 to 250 crore  The central government may change Coverage these annual turnover limits through a Thus NREGA covers the entire country notification. The maximum turnover with the exception of districts that have a may be up to three times the limits hundred percent urban population. specified in the Bill. Salient Features of the Act  Under the Act, the central government  Adult members of a rural household, may classify micro, tiny or village enterprises as small enterprises. The willing to do unskilled manual work, Bill seeks to extend this to allow the may apply for registration in writing or classification of micro, tiny or village orally to the local Gram Panchayat enterprises as small as well as medium  The Gram Panchayat after due enterprises. verification will issue a Job Card. The Job Card will bear the photograph of National Rural Employment Guarantee all adult members of the household Act, (NREGA),2005 willing to work under MGNREGA and is free of cost The Mahatma Gandhi National Rural  The Job Card should be issued within 15 days of application. Employment Guarantee Act  A Job Card holder may submit a written application for employment to (MGNREGA), also known as Mahatma the Gram Panchayat, stating the time and duration for which work is sought. Gandhi National Rural Employment The minimum days of employment have to be at least fourteen. Guarantee Scheme (MNREGS) is Indian  The Gram Panchayat will issue a dated receipt of the written application for legislation enacted on August 25, 2005. employment, against which the guarantee of providing employment The MGNREGA provides a legal within 15 days operates  Employment will be given within 15 guarantee for one hundred days of days of application for work, if it is not then daily unemployment allowance as employment in every financial year to per the Act, has to be paid liability of payment of unemployment allowance adult members of any rural household is of the States.  Work should ordinarily be provided willing to do public work-related unskilled within 5 km radius of the village. In case work is provided beyond 5 km, manual work at the statutory minimum extra wages of 10% are payable to meet additional transportation and wage. living expenses The Ministry of Rural Development (MRD), Govt of India is monitoring the entire implementation of this scheme in association with state governments Objective of the Act The objective of the Act is to enhance livelihood security in rural areas by providing at least 100 days of guaranteed wage employment in a financial year to every household whose adult members volunteer to do unskilled manual work.

Easy to PICK329 - “UPSC Monthly Magazine” - April 2020  Wages are to be paid according to the Key Points : Minimum Wages Act 1948 for agricultural labourers in the State, unless the Centre notifies a wage rate which will not be less than Rs. 60/ per day. Equal wages will be provided to both men and women.  Wages are to be paid according to piece rate or daily rate. Disbursement of wages has to be done on weekly basis and not beyond a fortnight in any case  At least one-third beneficiaries shall be women who have registered and requested work under the scheme.  Work site facilities such as crèche, drinking water, shade have to be provided  The shelf of projects for a village will be recommended by the gram sabha and approved by the Zilla panchayat.  At least 50% of works will be allotted to Gram Panchayats for execution  Permissible works predominantly include water and soil conservation, afforestation and land development works  A 60:40 wage and material ratio has to be maintained. No contractors and machinery is allowed  The Central Government bears the 100 percent wage cost of unskilled manual labour and 75 percent of the material cost including the wages of skilled and semi-skilled workers  Social Audit has to be done by the Gram Sabha  Grievance redressal mechanisms have to be put in place for ensuring a responsive implementation process  All accounts and records relating to the Scheme should be available for public scrutiny

Easy to PICK330 - “UPSC Monthly Magazine” - April 2020 Chitra Gene Lamp- N makes confirmatory test results Part of: GS-III- S&T (PT-MAINS-  Its mandate is to conduct, coordinate PERSONALITY TEST) The confirmatory diagnostic test which and implement medical research for detects the N Gene of SARS- COV2 using reverse transcriptase loop-mediated the benefit of the Society; translating amplification of viral nucleic acid (RT- LAMP) will be one of world’s first few if medical innovations into not the first of its kinds in the world. The test kit, funded by the DST called products/processes and introducing Chitra GeneLAMP-N is highly specific for SARS-CoV-2 N-gene and can detect them into the public health system. two regions of the gene which will ensure that the test does not fail even if one region  It is funded by the Government of of the viral gene undergoes mutation during its current spread. The tests India through the Department of performed at NIV Alappuzha (authorized by ICMR) show that Chitra Health Research, Ministry of Health GeneLAMP- N has 100% accuracy and match with test results using RT-PCR. & Family Welfare. This has been intimated to ICMR, the authority to approve it, for COVID-19 Plasma enrichment technique testing in India, following which License The plasma enrichment techniques, need to be obtained from CDSCO for antibodies from the blood of patients who manufacture. have recovered from Covid-19 are used to Current PCR kits in India enable detection treat severely infected patients. It is aimed of E gene for screening and RdRp gene for at assessing the efficacy of convalescent confirmation. Chitra GeneLAMP-N gene plasma to limit complications in Covid- testing will allow confirmation in one test patients. without the need for a screening test and at much lower costs. Australia Company to begin 1st human The detection time is 10 minutes and the trial of COVID -19 vaccin sample to result time (from RNA Clinical research company Nucleus extraction in swab to RT LAMP detection Network revealed that, it would test the time) will be less than 2 hours. A total of effectiveness and safety of a Recombinant 30 samples can be tested in a single batch Spike Protein Nanoparticle vaccine, NVX- in a single machine allowing large number CoV2373, developed by US based of samples to be tested each day. Biotechnology Company. A small group of healthy volunteers would Indian Council of Medical Research be recruited for the trial to test the  Indian Council of Medical Research effectiveness of this vaccine. The human trial procedures would involve four phases, (ICMR) is the apex body in India for following strict protocols to make sure it the formulation, coordination and was safe and effective before being promotion of biomedical research. released to the public.

Easy to PICK331 - “UPSC Monthly Magazine” - April 2020 Scientist’s unravelled biggest star explosion ever seen Part of: GS-III- S&T - Space (PT-  When an object accelerates, it creates MAINS-PERSONALITY TEST) ripples in space-time, just like a boat The supernova, releasing twice as much causes ripples in a pond. energy as any other stellar explosion observed to date, occurred about 4.6  These space-time ripples are billion light years from Earth in a gravitational waves. They are relatively small galaxy. A light year is the extremely weak so are very difficult to distance light travels in a year, 5.9 detect. trillion miles (9.5 trillion km)PT SHOT. Believed to be a type of supernova that  Two objects orbiting each other in a until now has only been planar orbit such as a planet orbiting theorized.Astrophysicist said two very the Sun or a binary star system or the massive stars - each about 50 times the merging of two black holes will radiate sun’s mass - may have merged to make Gravitational waves. one extremely massive star roughly 1,000 years before the explosion. They had been  Albert Einstein predicted the existence part of what is called a binary system with of gravitational waves in 1916 in his two stars gravitationally bound to each general theory of relativity. other. The merged star exploded in a  Einstein’s mathematics showed that supernova, formally named SN2016aps, massive accelerating objects (such as inside a very dense and hydrogen-rich neutron stars or black holes orbiting envelope. each other) would disrupt space-time Stars die in various different ways in such a way that ‘waves’ of distorted depending on their size and other space would radiate from the source. properties. When a massive star - more than eight times the mass of our sun - uses  Furthermore, these ripples would travel up its fuel, it cools off and its core at the speed of light through the collapses, triggering shock waves that Universe. cause its outer layer to explode so violently that it can outshine entire  G- Waves can pass through any galaxies. intervening matter without being “Pulsational pair-instability is when very scattered significantly. massive stars undergo pulsations which eject material away from the star  While light from distant stars may be “This discovery shows that there are many blocked out by interstellar dust, exciting and new phenomena left to be gravitational waves will pass through uncovered in the universe. essentially unimpeded. This feature allows G-Waves to carry information Gravitational waves about astronomical phenomena never  Gravitational waves are ‘ripples’ in the before observed by humans. fabric of space-time caused by some of  Colliding black holes send ripples the most violent and energetic through spacetime that can be detected processes in the Universe. on Earth. The Advanced Laser Interferometer Gravitational-Wave Observatory, or Advanced LIGO, which has detectors in Louisiana and Washington, has directly observed these gravitational waves.

Easy to PICK332 - “UPSC Monthly Magazine” - April 2020 Astronomers spot “missing link” black hole Part of: GS-III- S&T - Space (PT- Scientists called intermediate-mass MAINS-PERSONALITY TEST) black holes the “missing link” in Using data from the Hubble Space understanding the range of black holes. Telescope and two X-ray observatories, the researchers determined that this black Additional notes hole is more than 50,000 times the mass of What is a black hole? our sun and located 740 million light years 1. A black hole is an object in space from Earth in a dwarf galaxy, one that is so dense and has such strong gravity containing far fewer stars than our Milky that no matter or light can escape its pull. Way. Because no light can escape, it is black and invisible. Black holes are extraordinarily dense 2. There’s a boundary at the edge of a objects possessing gravitational pulls so black hole called the event horizon, which powerful that not even light can escape. is the point of no return — any light or This is one of the few “intermediate- matter that crosses that boundary is sucked mass” (PT SHOT) black holes ever into the black hole. It would need to travel identified, being far smaller than the faster than the speed of light to escape, supermassive black holes that reside at the which is impossible. center of large galaxies but far larger than 3. Anything that crosses the event so-called stellar-mass black holes formed horizon is destined to fall to the very by the collapse of massive individual stars. centre of the black hole and be squished An object that was discovered originally into a single point with infinite density, back in 2010 is indeed an intermediate- called the singularity. mass black hole that ripped apart and swallowed a passing star If black holes are invisible, how can we The star was probably roughly a third detect or photograph them? the mass of the sun. Scientists have 1. By looking for the effects of their searched for intermediate-mass black holes for four decades and fewer than 10 good extreme gravity, which pulls stars and examples are known, though large gases toward them. numbers may exist. 2. Also, while anything past the event “So finding a new one is very significant. horizon is invisible, outside that Also, a black hole swallowing a star boundary there is sometimes a spiral happens on average only once every disk of gas that the black hole has 10,000 years or so in any particular galaxy pulled toward — but not yet into — so these are rare occurrences,” itself. The supermassive black hole at the centre 3. The gases in that accretion disk are of the Milky Way is 4 million times the heated up as they accelerate toward mass of the sun and located 26,000 light the black hole, causing them to glow years from Earth. The closest stellar-mass extremely brightly. The colours they black star is about 6,000 light years from glow are invisible to us, but are Earth. A light year is the distance light detectable with an X-ray telescope. travels in a year, 5.9 trillion miles (9.5 4. Scientists have also detected the trillion km). gravitational waves generated when two black holes collide. light surrounding the black hole right to the

Easy to PICK333 - “UPSC Monthly Magazine” - April 2020 edge of the event horizon, which is the dense core that we know as a black hole — goal of the Event Horizon Telescope. something predicted by Albert Einstein’s How big are black holes? general theory of relativity. Small black holes are called stellar-mass Einstein’s theory also predicts the size black holes. They have masses similar to those of larger stars — about five to 20 and shape of the black holes that the times the mass of the sun. The other kind is supermassive black holes, which are Event Horizon Telescope is trying to millions to billions of times more massive than the sun. That’s the kind the Event photograph. Horizon Telescope has been trying to photograph, as bigger objects ought to be The scientists at Event Horizon easier to see. There is some evidence that black holes between these two sizes exist, Telescope Project have released the first- but that has yet to be confirmed. While black holes are very massive, that ever image of a Black Hole (more doesn’t mean they take up a lot of space. Because they’re so dense, they’re actually precisely, of its shadow). quite small. According to NASA, a black hole 20 times the mass of the sun could fit  The black hole is located in the center inside a ball 16 kilometres wide — the width of the Island of Montreal at its of galaxy Messier 87, in widest point. the constellation Virgo. It is located Where are black holes found? Supermassive black holes are found at the about 53 million light -years away centre of most galaxies, including our own Milky Way. The one in our galaxy is from earth. called Sagittarius A* and is one of those the  The black hole has a mass of 6.5 Event Horizon Telescope has been attempting to photograph. billion Suns. Sagittarius A* isn’t the only black hole in our galaxy, though. Earlier this year,  The image was made possible by astronomers discovered another 12 within three light-years of it, suggesting there the Event horizon telescope (EHT). could be upwards of 10,000 black holes around the galactic centre.  The EHT picks up the radiation Where do black holes come from? emitted by particles in the galaxy Supermassive black holes are believed to form at the same time as the galaxy that heated to billion degrees as they surrounds them, but astronomers aren’t sure exactly how. revolve around the black hole close to Stellar mass black holes form when a star with a mass greater than three times that of the speed of light. our sun runs out of fuel. It explodes into a supernova and collapses into an extremely Event Horizon  There is a region of space beyond the black hole called the event horizon. This is a \"point of no return\", beyond which it is impossible to escape the gravitational effects of the black hole. Event Horizon Telescope Project  EHT is a group of 8 radio telescopes (used to detect radio waves from space) located in different parts of the world. Musk’s SPACE X wins NASA award for planned lunar space station SpaceX will get a portion of a $7 billion NASA contract to use its biggest rocket, Falcon Heavy, to send a new “Dragon XL” spacecraft to the Lunar Gateway, an outpost NASA plans to build that will orbit

Easy to PICK334 - “UPSC Monthly Magazine” - April 2020 the moon sometime within the next decade. The Dragon XL spacecraft, the latest variant in Musk’s lineup of so-called Dragon cargo and astronaut capsules, will carry research supplies that will help future astronauts on the surface of the moon collect lunar samples, a NASA announcement said. The Dragon variant, which would be docked at the orbital station for six to 12 months per mission, is “optimized to carry more than 5 metric tons of cargo to Gateway in lunar orbit,” Key Points :

Easy to PICK335 - “UPSC Monthly Magazine” - April 2020 RBI to infuse Rs 1 lakh crore – LTRO – RBI Rreforms Part of: GS-III- RBI reforms (PT- -Banks shall not make any dividend MAINS-PERSONALITY TEST) payments until further orders. -NPA classification for banks will exclude Context the moratorium period. RBI Governor Shaktikanta Das announced -Economic activities have come to a new measures to maintain adequate standstill during lockdown. liquidity in system, facilitate bank credit - ₹50,000 crore special finance facility to flow and ease financial stress. RBI be provided to financial institutions such announced ₹50,000 crore worth of as Nabard, Sidbi, NHB. targetted LTRO and a cut in reverse repo -No change in repo rate which is decided rate. by MPC. -Reverse repo rate cut by 25 bps to 3.75%. As India entered into the second phase of -New measures aimed at maintaining a nationwide lockdown to combat adequate liquidity in system, facilitate coronavirus, Reserve Bank of India (RBI) bank credit flow, ease financial stress. Governor Shaktikanta Das announced new -TLTRO 2.0 operations of ₹50,000 crore measures to boost liquidity, expand bank will be conducted. credit flow and ease financial stress. To -To maintain adequate liquidity in the benefit NBFCs and micro-financial system, we have decided to take additional institutions, the central bank said it will measures. conduct targetted long-term repo -Redemption pressures faced by some operations (TLTRO) 2.0 worth ₹50,000 mutual funds have moderated. crore. After cutting the benchmark lending -Automobile production, sales declined rate by 75 bps three weeks ago, the RBI sharply in March; electricity demand has today cut the reverse repo rate to 25 fallen sharply. basis points to 3.75%. The central bank -Covid-19 impact is not captured in IIP has also asked all banks to not make any data for Feb. dividend payments to shareholders keeping -ATM operations stood at 91%, no in mind the financial challenges during the downtime on internet and mobile banking. Covid-19 pandemic. -India is expected to post sharp turnaround in 2021-22, says RBI Governor quoting Important Points IMF projection.IMF projection of 1.9% -RBI will monitor evolving situation GDP growth for India is highest in G20. continuously, use all its tool to deal with -Banks, financial institutions have risen to pandemic fallout. occasion to ensure normal functioning -Loans given by NBFCs to real estate during outbreak of pandemic. companies to get similar benefit as given -RBI governor cites developments that by scheduled commercial banks. bode well for rural demand. -LCR requirement of banks brought down -Financial market situation has to 80% from 100%; to be restored in deteriorated in some areas. phases by April next year. -Rupee rises 29 paise to 76.58 against US -Inflation is on a declining trajectory, dollar in early trade. could recede even further. -Sensex rose over 1,000 points before RBI's announcement.

Easy to PICK336 - “UPSC Monthly Magazine” - April 2020 PT PICKUPS  It is the rate at which the central 1. Long-term Repo Operations bank of a country lends money to  Under LTRO, RBI will conduct term commercial banks in the event of any shortfall of funds (Reserve Bank repos of one-year and three-year tenors of India, in case of India). of appropriate sizes for up to a total amount of Rs 1 lakh crore at the  It is used by monetary authorities to prevailing repo rate. control inflation.  As banks get long-term funds at lower rates, their cost of funds falls. In turn,  In the event of inflation, central banks they reduce interest rates for increase the repo rate as this acts as a borrowers. disincentive for banks to borrow from  LTRO helps RBI to ensure that banks the central bank. This ultimately reduce their marginal cost of funds- reduces the money supply in the based lending rate, without reducing economy and thus helps in arresting policy rates. inflation. Objectives of LTRO  The central bank takes the contrary  To assure banks about the availability position in the event of a fall in inflationary pressures. of durable liquidity at reasonable cost relative to prevailing market  Ideally, a low repo rate conditions. should translate into low-cost loans  Further encourage banks to undertake for the general masses. When the RBI maturity transformation smoothly and slashes its repo rate, it expects the seamlessly so as to augment credit banks to lower their interest rates flows to productive sectors. charged on loans. o Maturity transformation is when banks take short-term sources of finance, 3. About RBI such as deposits from savers, and turn them into long-term borrowings, such History as mortgages.  The Reserve Bank of India was 2. Monetary Policy Committee  It is a statutory and institutionalized established on April 1, 1935 in framework under the Reserve Bank accordance with the provisions of of India Act, 1934, for maintaining price stability, while keeping in mind the Reserve Bank of India Act, 1934. the objective of growth.  The Governor of RBI is ex-officio  The Central Office of the Reserve Chairman of the committee.  The MPC determines the policy Bank was initially established in interest rate (repo rate) required to achieve the inflation target (4%). Calcutta but was permanently moved  An RBI-appointed committee led by the then deputy governor Urjit Patel in to Mumbai in 1937. The Central 2014 recommended the establishment of the Monetary Policy Committee. Office is where the Governor sits and Repo Rate where policies are formulated.  Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India. Preamble  To regulate the issue of Bank notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage.

Easy to PICK337 - “UPSC Monthly Magazine” - April 2020  To have a modern monetary policy  It was created to bring transparency framework to meet the challenge of an and accountability in deciding increasingly complex economy. monetary policy.  To maintain price stability while  MPC determines the policy interest keeping in mind the objective of rate required to achieve the inflation growth. target. Structure  Committee comprises of six members  The Reserve Bank's affairs are where Governor RBI acts as an ex- officio chairman. Three members are governed by a central board of from RBI and three are selected directors. The board is appointed by by government. the Government of India in keeping with the Reserve Bank of India Act.  Inflation target is to be set once in a  The directors are appointed/nominated five year. It is set by the Government for a period of four years. of India, in consultation with the Reserve Bank. Constitution  Official Directors (central board of Current inflation target is pegged at 4% with -2/+2 tolerance till March 31, 2021. directors) 2. Regulator and Supervisor of the o Full-time: Governor and not more Financial System:  Prescribes broad parameters of banking than four Deputy Governors  Non-Official Directors operations within which the country's o Nominated by Government: ten banking and financial system functions such as issuing licenses, branch Directors from various fields and two expansion, liquidity of government Official assets, amalgamation of banks etc. o Others: four Directors - one each from  Objective: maintain public confidence four local boards (regional) in the system, protect depositors' interest and provide cost-effective Main Functions banking services such as commercial 1. Monetary Authority: banking, co-operative banking, to the  It implements and monitors the public. monetary policy and ensures price 3. Manager of Foreign Exchange: stability while keeping in mind the  Manages the Foreign Exchange objective of growth. An amendment to RBI Act, 1934, was reserves of India. made in May 2016, providing the statutory  It facilitates external trade and basis for the implementation of the flexible inflation targeting framework. payment and promotes orderly Section 45ZB of the amended RBI Act, development and maintenance of 1934, also provides for an empowered six- foreign exchange market in India. member Monetary Policy Committee  It also maintains external value of (MPC) to be constituted by the Central rupee. Government by notification in the Official Gazette 4. Issuer of Currency: destroys  Issues and exchanges or fit for Monetary Policy Committee  It was created in 2016. currency and coins not circulation.

Easy to PICK338 - “UPSC Monthly Magazine” - April 2020  Objective: to give the public adequate  Under section 7 of the RBI Act, the quantity of supplies of currency notes central government may from time to and coins and in good quality. time give such directions to the RBI as it may, after consultation with the 5. Developmental Role: Governor of the Bank, consider  Performs a wide range of promotional necessary in the public interest. Moreover, there is no legal act functions to support national objectives mandating autonomy of the RBI. such as making institutional arrangements for rural or agricultural  Yet, RBI has always been looked upon finance. as an autonomous body which has  Commercial banks lend loans to small- under its umbrella all commercial scale industrial units as per the banks, be it PSBs or private banks or directives (Priority Sector Lending) foreign banks. issued by the Reserve Bank of India time to time.  It is not only vested with the powers to formulate the monetary policy but also 6. Financial Inclusion: to monitor the functioning of all banks.  The Reserve Bank has selected a bank  To play its role effectively, autonomy in its functioning is sine qua non for led model for financial inclusion in RBI. India. RBI has undertaken a series of  However, the independence of RBI has been challenged many times due to a policy measures. Some of the continued tug of war for wresting more power between the bank and the govt. important ones are: o No Frills Accounts – account either  The main reasons for this have been: with nil or very low minimum balance 1. RBI’s failure to check the growth of Non Performing Assets. as well as charges that would make 2. Reduced liquidity in the economy due such accounts accessible to vast to tight monetary policy followed by RBI. sections of population. o Use of Technology – devices such as 3. Corrective measures taken by RBI to clean up the banking system ATMs, hand held devices to identify which are not seen very positively by the government user accounts through a card and 4. Clash between short term populist biometric identifier, Deposit agenda of the government and long term view for price stability taken by taking machines and Internet banking RBI. and Mobile banking facility to provide 5. Regulation of Public Sector Banks: One important limitation is that the the banking services to all sections of Reserve Bank is statutorily limited in undertaking the full scope of actions society with more ease. against public sector banks (PSBs) – such as asset divestiture, replacement 7. Related Functions: of management and Board, license  Banker to the Government: performs revocation, and resolution actions such as mergers or sales –– all of which it merchant banking function for the can and does deploy effectively in case central and the state governments. of private banks.  It is entrusted with central govt.’s money, remittances, exchange and manages its public debt as well.  Banker to banks: maintains banking accounts of all scheduled banks. It also acts as lender of last resorts by providing fund to banks. Independence of RBI

Easy to PICK339 - “UPSC Monthly Magazine” - April 2020 6. Erosion of statutory powers of the U.S. Treasury dropped to a 200-year central bank through piece-meal low. legislative amendments that directly or indirectly eat at separation of the Open Market Operations central bank from the government.  Open Market Operations (OMO) is one RBI’s Important Publication (half of the quantitative (to regulate or control the total volume of money) yearly) monetary policy toolswhich is  Financial Stability Report employed by the central bank of a  Monetary Policy Report country to control the money supply  Report on Financial Review in the economy.  OMOs are conducted by the RBI by 5. ‘Operation Twist’ way of sale or purchase of The Reserve Bank of India has government securities (g-secs) to announced that it will carry out US-style adjust money supply conditions. 'Operation Twist' to bring down interest  The central bank sells g-secs to remove rates. liquidity from the system and buys back g-secs to infuse liquidity into the Important Points system.  RBI will conduct simultaneous  These operations are often conducted on a day-to-day basis in a manner that purchase and sale of balances inflation while helping banks government securities under Open continue to lend.  RBI carries out the OMO through Market Operations (OMO) for commercial banks and does not ₹10,000 crore each. directly deal with the public.  It will purchase the longer-term  The RBI uses OMO along with other monetary policy tools such as repo maturities (i.e government bonds rate, cash reserve ratio and statutory liquidity ratio to adjust the quantum maturing in 2029), and simultaneously and price of money in the system. sell the shorter duration ones (i.e. Pool testing of corona virus Uttar Pradesh has become the first state short-term bonds maturing in 2020). in the country to start pool testing of  The eligible participants can bid or corona virus samples. The move is aimed at speeding up the screening process and submit offers in electronic format also brings down the cost of testing on RBI’s Core Banking Solution (E- samples. State health department has also decided to carry out the audit of any death Kuber). in state due to COVID-19. The death audit will help in providing better treatment to ‘Operation Twist’ other COVID-19 patients. The Pool testing  ‘Operation Twist’ is when the central of corona samples started yesterday and 150 samples were divided into 30 pools of bank uses the proceeds from the sale 5 each samples. of short-term securities to buy long- In the pool testing method, multiple term government debt papers, leading to easing of interest rates on the long term papers.  Operation Twist first appeared in 1961 as a way to strengthen the U.S. dollar and stimulate cash flow into the economy.  In June 2012, Operation Twist was so effective that the yield on the 10-year

Easy to PICK340 - “UPSC Monthly Magazine” - April 2020 swab samples are pooled together and leverage the strategies that helped the tested. If the result of a collection of country eradicate polio to fight the COVID- samples comes negative, then that means 19 pandemic. all the samples in that group are In a tweet, WHO Chief said, WHO's negative.However, if the result of one national polio surveillance network will be collection is found positive, then each of engaged to strengthen COVID-19 those samples is tested individually. Pool surveillance and its field staff will continue testing of a collection of samples is done to support immunization and elimination of during large outbreaks and invisible tuberculosis and other diseases. community transmission to fasten the The combined meticulous work, done with screening process and bring down the cost. full sincerity and dedication, India was able to get rid of polio.” India eliminated polio in Government dismiss false news alarm 2014. that UPSC exams have been cancelled due to COVID -19 PT PICKUPS Union Government has dismissed as false reports in a regional news channel that World Health Organization (WHO), the examinations held by UPSC have been United Nations’ specialized agency for cancelled in the wake of COVID-19. In a tweet, Press Information Bureau Health was founded in 1948. clarified that the claim is false. It said, any rescheduling of UPSC examination if  Its headquarters are situated necessary, will be notified on the Commission's website. in Geneva, Switzerland. Watch this for UPSC PT 2020:  There are 194 Member States, 150 https://www.youtube.com/watch?v=wfd6v9 PSYZs country offices, six regional offices. Indian railway creates history  It is an inter-governmental Indian Railways has created history as its 88 coach freight train Annapurna carrying organization and works in foodgrains covered 1,634 kilometres in less than 50 hours.Eighty eight coach collaboration with its member states Annapurna Freight Train travelled from Dhandharikalan in Punjab to New usually through the Ministries of Jalpaiguri in West Bengal in 49 hours 50 minutes. The distance of 1,634 kilometres Health. used to take 96 to 100 hours. The freight train has promptly transported food to ten  The WHO provides leadership on needy states. This is for the first time Railways has transported foodgrains in such global health matters, shaping the a large scale. It is 137 per cent more than last year. health research agenda, setting norms WHO welcomes joint effort with India to and standards, articulating evidence- fight CoVID -19 The WHO has said it will work with India's based policy options, providing Ministry of Health and Family Welfare to technical support to countries and monitoring and assessing health trends. It began functioning on April 7, 1948 – a date now being celebrated every year as World Health Day. Objectives  To act as the directing and coordinating authority on international health work.  To establish and maintain effective collaboration with the United Nations, specialized agencies, governmental health administrations, professional groups and such other organizations as may be deemed appropriate.

Easy to PICK341 - “UPSC Monthly Magazine” - April 2020  To provide assistance to the per test. Governments, upon request, in National Institute of Virology, Alappuzha strengthening health services. had found that the new technique is giving cent per cent accurate result and  To promote cooperation among now the ICMR approval for the same is scientific and professional awaited. Once the ICMR approval comes, groups which contribute to the this could a major step in our fight against advancement of health. COVID-19 in the country, creating our own faster, cheaper and accurate detection of INDIAN scientists have developed low virus. cost diagnostic kit for COVID -29 Centre releases 7,300crore rupees to states and UTs under MGNREGA Sree Chitra Tirunal Institute for Medical Rural Development Minister conducted a detailed review of all flagship schemes of Sciences and Technology in the Rural Development. He desired that MGNREGS works in Non-Containment Thiruvananthapuram, under the Areas with adequate focus on social distancing, must be resumed in an Department of Science and Technology, has efficient manner. The Minister said, the focus should be on creating durable assets developed an innovative diagnostic test kit relating to irrigation and water conservation. Minister expressed satisfaction that over 93 named, Chitra Gene LAMP-N for the thousand Self Help Group members are engaged in manufacturing of cotton diagnosis of COVID-19. protective face covers as well as sanitizers and are also running community kitchens This detects the N-Gene of virus using across the country. Under Pradhan Mantri Awaas Yojana reverse tranase loop-mediated (Gramin), over 800 crore rupees has been released to the States. He advised that amplification of viral nucleic acid or RT- around 40 lakh beneficiaries of this scheme who have received second and third LAMP technique. This new kit is instalment of funds must be assisted in a proactive manner to quickly complete their considered as one of the first few housing units. confirmatory diagnostic test for N-gene of About MGNREGA MGNREGA History: COVID-19 virus using the RT-LAMP In 1991, the P.V Narashima Rao government proposed a pilot scheme for technique in the world. generating employment in rural areas with the following goals: The test is highly specific that it can detect  Employment Generation for two regions of the gene which will ensure agricultural labour during the lean season. that the test does not fail even if one region  Infrastructure Development of the viral gene undergoes mutation during  Enhanced Food Security its current spread. Another major advantage of the new test kit is that it very fast. According to the institute, the detection time is only 10 minutes and the sample to result time will be less than two hours. At least 30 samples can be tested in a single batch in a single machine. The institute has also developed the specific RNA extraction kits along with Gene LAMP-N test kits and the testing device. Another advantage is that it is much cheaper.The device presently used for detection of COVID-19 costs nearly 15 to 45 lakh rupees whereas the new test device amounts to only 2.5 lakh rupees and the test kit of the presently used PCR kit, costs around 2,500 rupees per test, whereas the newly developed test kit costs only 1,000 rupees

Easy to PICK342 - “UPSC Monthly Magazine” - April 2020 This scheme was called the Employment Ever since the scheme was implemented, Assurance Scheme which later evolved into the number of jobs has increased by 240% the MGNREGA after the merger with the in the past 10 years. The scheme has been Food for Work Programme in the early successful in enhancing economic 2000s. empowerment in rural India and helping overcome the exploitation of labour. The Objectives of MGNREGA: scheme has also diminished wage volatility The Mahatma Gandhi National Rural and the gender pay gap in labour. Employment Guarantee Act (MGNREGA) has the following objectives: Key Points :  Provide 100 days of guaranteed wage employment to rural unskilled labour  Increase economic security  Decrease migration of labour from rural to urban areas MGNREGA differentiates itself from earlier welfare schemes by taking a grassroots- driven approach to employment generation. The programmes under the act are demand driven and provide legal provisions for appeal in case, work is not provided or payments are delayed. The scheme is funded by the central government which bears the full cost of unskilled labour and 75% of the cost of material for works undertaken under this law. The central and state governments audit the works undertaken under this act through annual reports prepared by CEGC (Central Employment Guarantee Council) and the SEGC (State Employment Guarantee Councils). These reports have to be presented by the incumbent government in the legislature. A few salient features of the scheme are:  It gives a significant amount of control to the Gram Panchayats for managing public works, strengthening Panchayati Raj Institutions. Gram Sabhas are free to accept or reject recommendations from Intermediate and District Panchayats.  It incorporates accountability in its operational guidelines and ensures compliance and transparency at all levels.  60:40 LABOUR Material RATIO

Easy to PICK343 - “UPSC Monthly Magazine” - April 2020 Earth Day and Earth Hour Part of: GS-III- Environment (PT-  Recently the Earth Hour MAINS-PERSONALITY TEST) 2019 was observed on March 30 Earth Day is an annual event, celebrated from 8:30 pm to 9:30 pm local time on April 22. with the theme #Connect2Earth.  Worldwide events are held to Earth Hour The Earth Hour was observed on demonstrate support for 28th March, 2020. environmental protection. The theme Points to remember of Earth Day 2019 is “Protect Our  Earth Hour is the World Wildlife Species”. Fund for Nature (WWF)’s annual  It was first celebrated in 1970, and is initiative that began in 2007.  It is held every year on the last now coordinated globally by the Earth Saturday of March.  It encourages people from more than Day Network and celebrated in more 180 countries to switch off the lights from 8.30 pm to 9.30 pm as per their than 193 countries each year. local time.  The idea is to refrain from the use of  The idea of commemorating such a day non-essential lighting to save energy in a symbolic call was propounded by Gaylord Nelson, for environmental protection.  Earth Hour has become a catalyst for an American environmentalist and positive environmental impact, driving major legislative changes by politician. harnessing the power of the people and collective action.  According to the United Nations,  Examples: It helped create a 3.5 million hectare marine-protected International Earth Day is area in Argentina and ban all plastics in the Galapagos in celebrated to remind each of us that 2014, plant 17 million trees in Kazakhstan, light up homes with the Earth and its ecosystems provide solar power in India and the Philippines and push new legislation us with life and sustenance. for the protection of seas and forests in Russia.  The Earth Day also recognizes a WWF collective responsibility, as called for  It is the world’s leading conservation in the 1992 Rio Declaration (Earth organization and works in more than 100 countries. Summit), to promote harmony with  It was established in 1961 and is headquartered at nature and the Earth to achieve a just Gland, Switzerland balance among the economic, social and environmental needs of present and future generations of humanity.  This day provides an opportunity to raise public awareness around the world to the challenges regarding the well-being of the planet and all the life it supports. Earth Day Network  Earth Day Network is a nonprofit organization whose mission is to diversify, educate and activate the environmental movement worldwide.  EDN main office is located in Washington DC, USA.

Easy to PICK344 - “UPSC Monthly Magazine” - April 2020  Its mission is to conserve nature and reduce the most pressing threats to the diversity of life on Earth.  WWF collaborates at every level with people around the world to develop and deliver innovative solutions that protect communities, wildlife, and the places in which they live. Key Points :

Easy to PICK345 - “UPSC Monthly Magazine” - April 2020 Agriculture labourer problems and solutions Part of: GS-III- Economy-Labour (PT- alternative sources of employment do MAINS-PERSONALITY TEST) not exist. Problems of Agriculture Labour: 1. Marginalisation of Agricultural 4. Indebtedness. In the absence of Workers. The workforce in agriculture banking system in the rural areas and (cultivators plus agricultural labourers) was 97.2 million in 1951 and this rose trial process of sanction by the to 185.2 million in 1991. As against this, the number of agricultural commercial banks, farmers prefers to labourers rose from 27.3 million in 1951 to 74.6 million in 1991. This take loans from un institutional sources implies that (i) the number of agricultural labourers increased by like Sahukars (moneylenders), almost three times over the period from 1951 to 1991; Agricultural labourers landlords at the very high rate (in some increased from 28 per cent in 1951 to 40 per cent in 1991. These facts cases at 40% to 50%) . This exorbitant indicate the fast pace of casualisation of workforce in agriculture in India. rate traps in the vicious circle of debt. Moreover, the share of agriculture and allied activities in GDP at factor cost 5. Low Wages for women in has consistently declined over the years - from 55.3 per cent in 1950-51 to 37.9 Agricultural Labour. Female per cent in 1980-81 (at 1999-2000 prices) and further to 14.0 per cent in agricultural workers are generally 2011-12 (at 2004-05 prices). 2. Wages and Income. Agricultural forced to work harder and paid less wages and family incomes of agricultural workers are very low in than their male counterparts. India. With the advent of the Green Revolution, money wage rates started 6. High Incidence of Child increasing. However, as prices also increased considerably, the real wage Labour. Incidence of child labour is rates did not increase accordingly. Currently labours are getting around high in India and the estimated number Rs. 150/day under the MGNREGA in rural areas. varies from 17.5 million to 44 million. 3. Employment and Working Conditions. The agricultural labourers It is estimated that one-third of the have to face the problems of unemployment and underemployment. child workers in Asia are in India. For a substantial part of the year, they have to remain unemployed because 7. Increase in Migrant Labour. Green there is no work on the farms and Revolution significantly increased remunerative wage employment opportunities in pockets of assured irrigation areas while employment opportunities nearly stagnated in the vast rain fed semi-arid areas. Measures taken by Government: 1. Minimum Wages Act. The Minimum Wages Act was passed as long back as in 1948 and since then the necessity of applying it to agriculture has been constantly felt. Means the Act is not applicable to agricultural sector? 2. Abolition of Bonded Labour. Since Independence, attempts have been made to abolish the evil of bonded labour because it is exploitative, inhuman and violative of all norms of social justice. In the chapter on Fundamental Rights in the Constitution

Easy to PICK346 - “UPSC Monthly Magazine” - April 2020 of India, it has been stated that trading  The Finance Minister was concerned in humans and forcing them to do that such a major liquidity injection begar is prohibited and can invite could produce potentially costly side- punishment under the law. effects if countries used the funds for 3. Provision of housing sites. Laws have irrelevant purposes. been passed in several States for providing house sites in villages to  The new SDR allocation will provide agricultural workers. all 189 members with new foreign 4. Special schemes for providing exchange reserves with no employment. Rural Employment conditions. (CSRE), National Rural Employment Jawahar Gram Samridhi Yojana Imp Points (JGSY), and National Food for Work Programme (NFFWP), Mahatma  The SDR is neither a currency nor a Gandhi Rural Employment Guarantee Act MGNREGA claim on the IMF. Rather, it is a 5. Special agencies for development. Special agencies - Small Farmers potential claim on the freely usable Development Agency (SFDA) and Marginal Farmers and Agricultural currencies of IMF members. SDRs can Labourers Development Agency (MFAL) - were created in 1970-71 to be exchanged for these currencies. solve the problems of Agriculture labour of the country.  The SDR serves as the unit of account of the IMF and some other international organizations.  The currency value of the SDR is determined by summing the values in U.S. dollars, based on market exchange rates, of a SDR basket of currencies.  The SDR basket of currencies includes the U.S. dollar, Euro, Japanese yen, pound sterling and the Chinese renminbi (included Ways and Means Advances (WMA) in 2016). The WMA are short-term loan facilities which allow the Centre and states to borrow  The SDR currency value is calculated funds from the RBI to bridge their temporary mismatch between expenditure daily (except on IMF holidays or and receipts. The interest rate on WMA is the RBI’s repo rate. Repo rate is basically whenever the IMF is closed for the rate at which RBI lends short-term money to banks. The WMA loans have a business) and the valuation basket is three-month tenure. States are allowed an overdraft facility (to borrow in excess of reviewed and adjusted every five years. WMA limit) of 21 days.  Quota (the amount contributed to the IMF) of a country is denominated (expressed) in SDRs. power is o Members’ voting related directly to their quotas.  India's Foreign exchange reserves also incorporate SDR. Special Drawing Rights: IMF Recently, the Finance Minister of India opposed a general allocation of new Special Drawing Rights (SDR) by the International Monetary Fund (IMF) because it might not be effective in easing Covid-19driven financial pressures.

Easy to PICK347 - “UPSC Monthly Magazine” - April 2020 Kisan Rath App Part of: GS-III-Food Security (PT- achieving a reduction in food wastage. MAINS-PERSONALITY TEST) o This will help in ensuring better prices of the produce to farmers. The Ministry of Agriculture & Farmers Welfare has launched ‘Kisan Rath’ mobile Key Points : application (app) to facilitate transportation of foodgrains and perishable during lockdown.  The application has been developed by the National Informatics Centre - NIC (backed by the Ministry of Electronics and Information Technology).  It will be available in eight languages initially, including english and hindi. Imp Points  The app is expected to connect farmers and traders to a network of more than 5 lakh trucks and 20,000 tractors.  It is meant to help farmers and traders who are searching for vehicles to move produce. This includes: o Primary transport from the farm to the mandis, local warehouses or the collection centres of farmer producer organisations. o Secondary transport from the local mandis to intra-and inter-State mandis, processing units, railway stations, warehouses or wholesalers.  The Government has granted relaxation in the nationwide lockdown for activities related to agriculture-farming and allied activities with a view to address problems being faced by the farming community.  The app will be a stepping stone towards provision of timely transportation service at competitive rates for farmers and traders, besides

Easy to PICK348 - “UPSC Monthly Magazine” - April 2020 Govt. nod mandatory for FDI from neighbouring countries Part of: GS-III- Economy - FDI (PT- company HDFC and now holds a 1.01% MAINS-PERSONALITY TEST) stake in the company. China’s footprint in the Indian business space has been expanding rapidly, Details: especially since 2014.  In the light of threat of opportunistic takeovers/acquisitions of Indian  The Chinese investment in India in companies due to the current COVID- 2014 stood at $1.6 billion. This 19 pandemic, the government involved mostly investment from has revised the FDI policy. Chinese state-owned players in the  Under the revised FDI policy, infrastructure space in India. prior government approval is mandatory for FDI from countries  By 2017, the total investment had which share a land border with increased five-fold to at least $8 billion India. The new policy states that when accompanied by a marked shift from a an entity of a country, which shares state-driven to market-driven land border with India or where the approach. beneficial owner of an investment into India is situated in or is a citizen of any  The report, titled “Following the such country, can invest only under the Money: China Inc’s Growing Stake in Government route. India-China Relations” estimates that **India shares land borders with Pakistan, the total current and planned Chinese Afghanistan, China, Nepal, Bhutan, investment in India has crossed $26 Bangladesh and Myanmar. As per the billion in March 2020. The major changed FDI policy, the transfer of Chinese investments in India span a ownership of any existing or future range of sectors with a significant FDI in an Indian entity to those in the share in the start-up space. A 2017 restricted countries would also need survey of Chinese enterprises in India government approval. Investors from by the Industrial and Commercial Bank countries not covered by the new policy of China’s Mumbai branch found that only have to inform the RBI after a 42% were in the manufacturing sector, transaction rather than asking for prior 25% in infrastructure and others permission from the relevant government in telecom, petrochemicals, software department. This move will help restrict and IT. Chinese investments in India and also help monitor the investments. Threat due to the COVID-19 pandemic:Many Indian businesses have Additional information: come to a halt due to the lockdown imposed  Though India’s FDI policy is directed to contain the COVID-19 pandemic. at attracting FDI, it needs to also Subsequently their valuations have balance security aspects. Investments plummeted.Many such domestic firms may from Pakistan and Bangladesh face be vulnerable to opportunistic takeovers higher restrictions as compared to or acquisitions from foreign FDIs from other countries. They need players.Recently, People’s Bank of China government approval and there is no made a portfolio investment through the stock market into the housing finance

Easy to PICK349 - “UPSC Monthly Magazine” - April 2020 provision for automatic FDI from these approval. Such a blanket application two countries into India.  Pakistani investors require government could create unintended problems. approval for FDI in defence, space and atomic energy sectors. 1. The new policy does not distinguish FDI new rules analysis between Greenfield and Brownfield The revised FDI policy makes prior government approval mandatory for FDI investments. from countries which share a land border with India.The objective is to curb  The new rules may pose obstacles to opportunistic takeovers or acquisitions due to the current COVID-19pandemic. Greenfield investments where This is indeed a risk that has also been identified by other countries. Chinese investors bring fresh capital to Concerns: establish new factories and generate Though well intended, the policy outlined in the press note released by employment in India. the Department for Promotion of Industry and Internal Trade (PT 2. The new policy does not distinguish SHOT) may have some unintended consequences. between listed and unlisted companies. Aimed at China: It also does not distinguish between  Given the fact that FDI restrictions the different types of investors, such as were already applicable to Pakistan and Bangladesh and the fact that industry players, financial institutions, Myanmar, Bhutan, Nepal and Sri Lanka are not major investors in India, or venture capital funds. the new policy seems to be aimed at Chinese investors. 3. The restrictions on Venture capital  China has been the fastest growing source of FDI since 2014. The funds may impact the prospects of many positive sentiment generated among industry players in China may well be start-ups in the Indian market. punctured by the need for government approval. Applicability with respect to certain  This could lead to straining of the funds: bilateral ties between the two  Most investors in companies such as economic powerhouses of the world. Zomato, Swiggy, Bigbasket, Wide application: Makemytrip, Oyo, Ola and The amended FDI policy does not restrict Snapdeal are either venture capital its application to only the takeover of funds registered in off-shore tax vulnerable companies. The amended havens or listed in stock exchanges in policy makes every type of investment by the U.S. or Hong Kong. Chinese investors subject to government  It would be extremely difficult to attribute nationality to venture capital funds or fix the ultimate beneficial ownership of listed companies down to founders of a certain nationality.  The most visible Chinese investment in India, mostly in the Internet space, may not even come under the definitions of the new rules. Will further drive down evaluations:  The COVID-19 pandemic has and will definitely cause financial stress in many unlisted or private companies.  Making government approval necessary for acquisitions in private companies by Chinese investors will only reduce the number of potential

Easy to PICK350 - “UPSC Monthly Magazine” - April 2020 investors available and will drive  The Committee on Foreign down the valuation. Investment in the United States (CFIUS) framework which allows or Consequences for the companies: promotes FDI with limited national  Given the global nature of the crisis security exceptions to deal with genuine threats to national security or there has been a drastic outflow of black swan events like the COVID-19 foreign capital from the Indian pandemic can act as a guiding light for economy and there are very little India’s own policy. chances for foreign investment to revive in the medium term. ABOUT FDI  There seems to be very little interest Foreign direct investment (FDI) among the domestic investors too. It is an investment from a party in one  The absence of an investor may cause country into a business or corporation bankruptcy in the struggling in another country with the intention of companies and lead to job losses. establishing a lasting interest.Lasting  A recent study notes that over half of interest differentiates FDI from foreign the top 500 companies listed on the portfolio investments, where investors National Stock Exchange could find passively hold securities from a foreign themselves strapped for cash to even country.Foreign direct investment can be make routine payments in the made by expanding one’s business into a aftermath of the COVID-19 induced foreign country or by becoming the owner lockdown. of a company in another country.  Majority of the firms could find themselves in liquidity trouble, Review of FDI policy on various sectors unless if promoters step in with (August 2019) equity or banks lend to them. Major Impact and Benefits from FDI  There is a significant likelihood that at Policy Reform some companies will need to go i. The changes in FDI policy will result for cost rationalisation through measures such as salary cuts, in making India a more attractive FDI payment deferrals or even job cuts. destination, leading to benefits of increased investments, employment Future foreign investment: and growth. ii. In the coal sector, for sale of coal,  The abolishing of the Foreign 100% FDI under automatic route for coal mining,activities including Investment Promotion Board in 2017 associated processing infrastructure helped boost India’s image as a FDI will attract international players to create an efficient and competitive coal friendly destination economy. market. iii. Further, manufacturing through  The amended policy may have contract contributes equally to the objective of Make in India. FDI now unintended consequences in the minds being permitted under automatic route in contract manufacturing will be a big of foreign investors and boost to Manufacturing sector in India. iv. Easing local sourcing norms for FDI in might disincentivize future Single Brand Retail Trading (SBRT) was announced in Union Budget investments. Conclusion:  The Indian government could have considered a more precise and focused intervention with respect to the new amendments in the FDI policy.