Daily Prelims Notes 11 August 2023

Daily Prelims Notes

11 August 2023

Table Of Contents

1. RBI Policy: Incremental CRR
2. RBI holds repo rate as inflation pressure persists
3. EMIs: Reserve Bank plans framework to reset interest on floating rate loans
4. RBI arm to develop digital platform to enable frictionless credit delivery
5. SAT partly sets aside SEBI order in NSE dark fibre case
6. Accelerated glacier retreat in Ladakh could spawn three glacial lakes, Wadia Institute study says
7. Ecosystem-based adaptation takes nature-based, people-centric approach to agriculture
8. Green minerals race: Ghana approves policy to reap maximum benefits from mining projects
9. Wildfire destroys Hawaiian town, leaving at least 36 dead
10. An immortal cell line and reparation, 70 years later
11. The obesity drugs waiting to hit the market
12. Bill seeks to remove CJI from the panel that picks CEC and ECs
13. Indian GPS NavIC to be linked to Aadhaar enrolment devices
14. Soon, AI will allow you make a UPI payment using voice
15. What are China’s ‘sponge cities’ and why aren’t they stopping the floods?

1. RBI Policy: Incremental CRR

Subject: Economy

Section: Monetary Policy

In News: RBI announced that all scheduled banks will have to maintain a 10% incremental cash reserve ratio (ICRR) from August 12.

Key Points:

• The ICRR of 10% will be on the increase in the banks’ net demand and time liabilities (NDTL) between May 19, 2023, and July 28, 2023.
• The measure is intended to absorb the surplus liquidity generated by various factors including the return of ₹2,000 notes to the banking system.
  • The recent jump in liquidity was aided by a pickup in government spending, sustained foreign inflows, and the effect of high-value currency withdrawal.
  • RBI’s foreign exchange purchases in response to a higher-than-expected Balance of Payments (BoP) surplus have also added to the rupee liquidity
• RBI Governor noted that it is a temporary measure for managing the liquidity overhang along with helping reduce inflation.
• The liquidity may be released before the festive season.
• The net impact of the incremental CRR, as per RBI’s internal calculation, will be a little over ₹1 lakh crore. Normally banks can park excess funds through the standing deposit facility (SDF) or reverse repo. With ICRR that much interest loss will be experienced by the banks
• The effective CRR for the period concerned now becomes 14.5% (4.5%+10%).

Effect of ICRR:

• Shares of banks fell after the announcement with the Bank Nifty index falling over 1%.
• A critical reason behind weakness in banking stocks is that the RBI’s decision on ICRR is expected to cause interest loss for banks
• The immediate impact of RBI absorbing liquidity via ICRR will be an increase in the money market rates for borrowers including NBFCs or corporates.
• Banks will face lower profit margins as it will affect their Net interest margin NIMs (3-4 bps).
• Tighter liquidity conditions in the banking system could lead to some upward pressure on both credit and deposit rates.

2. RBI holds repo rate as inflation pressure persists

Subject: Economy

Section: Monetary Policy

In News: Monetary Policy Committee (MPC)’s decides to maintain the repo rate at 6.50 per cent for the third time in a row.

Key Points:

• Factors such as spike in vegetable prices, uncertainties on domestic food price outlook due to sudden weather events and firm crude oil prices prompted the six-member Monetary Policy Committee (MPC) to unanimously vote to keep the policy repo rate.
• MPC’s decision to maintain the repo rate at 6.50 per cent for the third time, while it has revised its FY24 inflation forecast upwards.
• RBI revised its forecast for consumer price index-based (retail) inflation for FY24 upwards from 5.1 percent to 5.4 per cent due to persisting inflationary risks. It maintained real GDP growth projection for FY24 at 6.5 percent.
• Headline inflation, after reaching a low of 4.3 per cent in May 2023, rose in June and is expected to surge during July-August led by vegetable prices.
• Considering the short-term nature of the price shock from vegetables, monetary policy will look for high inflation data for some time, before any rate cut may happen. RBI also noted rate cut not likely before 2024.

3. EMIs: Reserve Bank plans framework to reset interest on floating rate loans

Subject: Economy

Section: Monetary Policy

In News: Reserve Bank of India has released a key proposal with the goal of improving both the flexibility and transparency of rates of interest on variable-rate loans.

Key Points:

• There have been several instances of unreasonable elongation of tenor of floating rate loans by lenders without proper consent and communication to the borrowers. This has led RBI to bring a new framework to reset interest rate or tenor on floating rate loans.
• The framework will require Regulated Entities to
  • (i) clearly communicate with borrowers for resetting the tenor and/or EMI;
  • (ii) provide options for switching to fixed-rate loans or foreclosure of loans;
  • (iii) disclose various charges incidental to the exercise of the options; and
  • (iv) ensure proper communication of key information to borrowers.
• These measures are aimed at further strengthening consumer protection.
• The framework aims to achieve following:
  • To give borrowers with variable rates of interest loans with a more predictable process for resetting interest rates.
  • It would improve openness about interest rate computations and allow borrowers to transition from fluctuating to fixed rates, providing stability and security against future volatility.
• The transparency of EMI on floating rate loans can be related to three areas: the benchmark rate, the spread over the benchmark, and the frequency with which the interest rate is reset.

What are floating-rate loans?

• • Banks can offer floating-rate loans based on external benchmarks, such as the repo rate or the 10-year government security yield.
  • These rates are already transparent because they are external to banks. However, in most cases, banks offer floating rate loans based on the internal benchmarks such as the Marginal Cost of Funds based Lending Rates (MCLR).
  • While the RBI has established an objective framework for calculating MCLR for individual banks, there is room for subjectivity in determining these rates.

4. RBI arm to develop digital platform to enable frictionless credit delivery

Subject: Economy

Section: Monetary Policy

In News: A digital public tech platform is being developed by its wholly-owned subsidiary, Reserve Bank Innovation Hub (RBIH), to enable the delivery of frictionless credit by facilitating the seamless flow of required digital information to lenders.

Key Points:

• The end-to-end digital platform will have an open architecture, open Application Programming Interfaces (APIs) and standards, to which all financial sector players can connect seamlessly in a ‘plug and play’ model.
• The platform is intended to be rolled out as a pilot project in a calibrated fashion, both in terms of access to information providers and use cases.
• The digital public tech platform to aid end-to-end digitalisation of the lending process in a paperless and hassle-free manner is expected to facilitate credit flow to the underserved in rural areas and other vulnerable sections of the society.
• The RBI’s “Statement on Developmental and Regulatory Policies” noted that with rapid progress in digitalisation, India has embraced the concept of digital public infrastructure which encourages fintech companies and start-ups to create and provide innovative solutions in payments, credit, and other financial activities.
• The statement underscored that for digital credit delivery, the data required for credit appraisal are available with different entities like Central and State governments, account aggregators, banks, credit information companies, digital identity authorities, etc. However, they are in separate systems, creating hindrance in frictionless and timely delivery of rule-based lending.

5. SAT partly sets aside SEBI order in NSE dark fibre case

Subject: Economy

Section: Capital Market 

In News: Securities Appellate Tribunal (SAT) has partly set aside a SEBI order directing the National Stock Exchange (NSE) to disgorge ₹62.6 crore, along with interest, in the dark-fibre case.

Key Points:

• Securities Appellate Tribunal on Wednesday partly set aside a 2019 SEBI order directing the National Stock Exchange to disgorge Rs 62.6 crore made in unlawful gains, along with interest earned, from its co-location facility since September 2015.
• The case relates to the alleged differential access given to certain broking firms in the form of ‘dark fibre’ at NSE, to connect across the co-location facilities before other members.
• Dark fibre or unlit fibre, with respect to network connectivity, refers to an already laid but unused or passive optical fibre, which is not connected to active electronics/equipment and does not have other data flowing through it and is available for use in fibre-optic communication.
• All other orders passed against NSE, comprising a periodic review of its co-location facility, putting in place comprehensive guidelines, Standard Operating Procedures and protocols with respect to its co-location facility were found appropriate and were upheld, according to SAT’s order.

6. Accelerated glacier retreat in Ladakh could spawn three glacial lakes, Wadia Institute study says

Subject: Geography

Section: Places in news

Context:

• A new study has found that the Parachik glacier in Ladakh has rapidly retreated, with its pace increasing significantly from an average of two metres per year between 1971 and 1999 to 20 meters per year between 2015 and 2021.

Study findings:

• A tool called the Himalayan Glacier Thickness Mapper (HIGTHIM) was used to estimate the depth, water volume of the potential lakes, and other topographical features of the glacier.
• If the glacier continues to melt at its current pace, it could lead to the formation of three glacial lakes, increasing the region’s risk to glacial lake outburst floods.
• Additionally, water scarcity issues might worsen as glaciers, vital water sources, continue to diminish due to accelerated retreat.
• Mounting evidence suggests the Himalayan glacial retreat poses significant threats, warranting better glacier management strategies.

Parachik glacier:

• Suru river valley, where the Parachik glacier is located, has 252 glaciers covering 11% of the river’s catchment area.
• The Parachik glacier, spanning 53 square kilometers in the southern Zanskar ranges, supplies water to the Suru river.
• The Suru river is a tributary of the Indus and is considered a major source of water for Kargil district in Ladakh.
• Observations reveal concerning signs of the glacier’s deterioration, including regular ice-collapsing events and retreat.

Glacier management:

• This may affect the water supply to the Indus basin.
• Glaciers in the Karakoram mountain range have also started to retreat at a faster rate.
• Future water supply issues due to glacier retreat could also force water sharing agreements like the Indus Water Treaty between India and Pakistan to be re-evaluated.

7. Ecosystem-based adaptation takes nature-based, people-centric approach to agriculture

Subject: Environment

Section: Climate Change 

Multilayer farming:

• Multilayer farming is the process of growing multiple crops in a single field. This is done by planting a crop on top of an already existing crop. The first crop is then harvested, and the land is used to plant another crop.
• The purpose of this is to save space on land and improve efficiency. It is an ancient method of farming that is used to increase crop yield and avoid competition between plants.
• Multilayer farming is also an example of an ecosystem-based adaptation (or EbA) approach in agriculture.

Ecosystem-based adaptation (EbA):

• EbA is a relatively new term coined in 2008 by the International Union for Conservation of Nature (IUCN) and defined in the UN Convention on Biological Diversity as a strategy for the integrated management of land, water and living resources that promote conservation and sustainable use in an equitable way. EbA comes under the umbrella of nature-based solutions (NbS) and is people-centric in its approach.
• Ecosystem-based adaptation (EbA) in agriculture helps farmers reduce their vulnerability to climate change and overcome its vagaries by harnessing biodiversity and natural resources.
• Small-holder farmers can increase their food security, diversify and increase their sources of income generation, take advantage of local or traditional knowledge and have low implementation and labour costs by adopting EbA in farming.
• Ecosystem-based adaptation is considered to be essential in achieving various sustainable development goals and is aligned with the Indian government’s MissionLiFE programme that encourages people to be pro-planet.

Reduce emissions through climate-smart agriculture:

• Agriculture production is a major greenhouse gas emitter in India, accounting for 18% of the country’s total greenhouse gas emissions. Apart from adaptation to climate change, mitigation is another aspect of EbA.
• In the United Nations Environment Programme’s (UNEP) guidelines for integrating EbA into National Adaptation Plans, EbA is acknowledged to be essential in achieving the sustainable development goals of zero hunger, clean water and sanitation, sustainable cities and communities, climate action, life below water and life on land.
• Digital Green is a global agricultural development organization.
  • One of the programmes of Digital Green in Bihar uses the monitoring, reporting and verification or MRV platform that ensures a rigorous standard for tracking farmer practices and emissions via calibrated climate models as well as promotes science-backed agriculture practices for reducing agricultural emissions.
• Farmstack is an open-source data-sharing platform
• AgNext is for chili quality assaying.

About Mission LiFE:

• The idea promotes an environmentally conscious lifestyle that focuses on ‘mindful and deliberate utilization’ instead of ‘mindless and wasteful consumption i.e. Net-zero living or sustainable lifestyle.
• The Mission encourages the P3 model, i.e., Pro Planet People.
• Advocates for the circular economy.
• Mission LiFE makes everyone trustees of the environment.
• The main objectives enumerated in the LiFE concept are
  • saving energy at home,
  • cycling and using public transport instead of driving,
  • eating more plant-based food and wasting less, and
  • leveraging our position as customers and employees to demand climate-friendly choices.

8. Green minerals race: Ghana approves policy to reap maximum benefits from mining projects

Subject: Geography

Section: Economic geography 

Context:

• Ghana approved a new policy for the exploitation, management and regulation of lithium and other green minerals in the country, to keep pace with the rising global demand for minerals critical for transitioning to clean energy.

Details:

• The Ewoyaa lithium project is the first lithium-producing mine in Ghana being developed by Atlantic Lithium, a Sydney-based, Africa-focused lithium exploration and development company.
• Recently, Namibia and Zimbabwe banned the export of lithium ore.
  • The Namibia government banned the bulk export of unprocessed minerals including lithium, graphite and cobalt, known in the industry as direct shipping ore (DSO).
  • Zimbabwe prohibited export of raw lithium from its mines to stop losing billions of dollars in mineral proceeds to foreign companies.

Key features of the new policy framework:

• Maximum benefits to Ghana from its resources of ‘Green Minerals’.
• Maximum involvement of local people.
• The goal of the policy is to retain a significant proportion of the value chain of these future and other critical minerals in our country, as far as possible.
• It prohibits export of critical minerals including lithium, bauxite and iron, among others, in their raw state since this denies the country the opportunity to add real value to the economy.

Green Minerals:

• Often referred to as “minerals of the future”, green minerals are metals and other mineral resources that are needed to support the transition to clean energy technologies aimed at reducing carbon emissions.
• These include — bauxite, cobalt, copper, lithium, granite, manganese and nickel.

Demand of green minerals:

• According to the International Energy Agency, electric vehicles (EV) and battery storage account for about half of the mineral demand growth from clean energy technologies over the next two decades.
• Mineral demand for use in EVs and battery storage is expected to grow around 30 times in the period to 2040.

Challenges:

• China’s dominance over African mining and mineral extraction sectors.
• Weak domestic governance structures and policy impediments in African nations.

9. Wildfire destroys Hawaiian town, leaving at least 36 dead

Subject: Environment

Section: Climate Change 

Context:

• Thousands of Hawaii residents raced to escape homes on Lahaina town (Maui) as blazes swept across the island, destroying parts of a centuries-old town and killing at least 53 people in one of the deadliest U.S. wildfires in recent years.

Details:

• The fires were whipped by strong winds from Hurricane Dora passing far to the south. It’s the latest in a series of disasters caused by extreme weather around the globe this summer.
• Fires in Hawaii are unlike many of those burning in the U.S. West.
• They tend to break out in large grasslands on the dry sides of the islands and are generally much smaller than mainland fires.
• A major fire on the Big Island in 2021 burned homes and forced thousands to evacuate.

Wildfires:

• A wildfire, forest fire, bushfire, wildland fire or rural fire is an unplanned, uncontrolled and unpredictable fire in an area of combustible vegetation.
• Depending on the type of vegetation present, a wildfire may be more specifically identified as a bushfire (in Australia), desert fire, grass fire, hill fire, peat fire, prairie fire, vegetation fire, or veld fire.
• Some natural forest ecosystems depend on wildfire.
• Wildfires are distinct from beneficial human usage of wildland fire, called controlled or prescribed burning, although controlled burns can turn into wildfires. Modern forest management often engages in prescribed burns to mitigate risk and promote natural forest cycles.

Why are wildfires worsening?

• Wildfires require right climatic conditions, burnable fuel and a spark.
• Rising temperatures suck moisture out of plants, creating an abundance of dry fuel.
• Drought and high heat can kill plants and dry out dead grass, and other material on the forest floor that fuel the fire once it starts sweeping through a patch.
• While dry vegetation is the burnable fuel that serves as kindling for fires, the spark is sometimes caused by lightning, at other times by accident or recklessness of the local population.

Impact of Forest Fire:

• Loss of Ecosystems and Biodiversity: Forest fires destroy the habitats and the intricate relationships of diverse flora and fauna leading to loss of ecosystems and biodiversity.
• Forest Degradation: Almost every year, forest fires are witnessed across different forest regions which persistently reduce the quality of certain forest features like soil fertility, biodiversity, and ecosystems.
• Air Pollution: The huge clouds of smoke instigated by wildfires lead to massive air pollution.
  • Wildfire smoke, and particularly the concentration of PM 2.5, or particles smaller than 2.5 microns, can also affect the respiratory and cardiovascular systems
• Global Warming: When plant life is exterminated by fires greenhouse gasses increase in the atmosphere leading to climate change and global warming
  • Trees and vegetation when burned, it means more greenhouse gases increase in the atmosphere, resulting in global warming.
• Soil Degradation:
• Forest fires kill beneficial soil microorganisms that are responsible for breaking down the soil and promoting soil microbial activities.
  • The burning of trees and vegetation cover also leaves the soil bare making it readily vulnerable to soil erosion.

For further details: https://optimizeias.com/forest-fires/

10. An immortal cell line and reparation, 70 years later

Subject: Science Technology

Section: Biotechnology 

Context:

• The U.S. biotech company Thermo Fisher Scientific came to an agreement with the family of Henrietta Lacks after 70 years, whose cancer cells were removed from her without her permission when under treatment in a hospital in Maryland.

HeLa Cells:

• The cells taken from Henrietta Lacks went on to become an immortalised cell line called HeLa (for Henrietta Lacks) used in scientific research.
  • HeLa cells were the first human cells to be successfully cloned in 1953 by Theodore Puck and Philip I. Marcus at the University of Colorado, Denver, and since then, HeLa cells have “continually been used for research”.
  • The cells have been instrumental in at least three Nobel-prizewinning discoveries.
  • It is said that in the 1960s, HeLa cells that were taken on space missions to study the effects of space travel on living cells and tissue, divided even more quickly in zero gravity.

Why a compensation now?

• It is reportedly the most commonly used cell line across the world, and yet neither the patient, a 31- year old poor, African American woman, nor her family were acknowledged or compensated for the contribution.
• The cells were taken from the patient, without her consent, when she was under treatment for cervical cancer.

Cell culture:

• Cell culture is the process by which cells are grown in a petridish, in a lab in controlled conditions, outside of their natural environment.
  • These cells are used in critical and path breaking scientific research to develop drugs, vaccines (polio), study the effects of radiation, how pathogens affect humans, gene mapping etc.
• Usually cells cultured in the lab from human cells could be kept alive for only a few days, subject to the phenomenon of cellular senescence, or the cessation of cell division.
• However, Henrietta Lacks’ cells allowed scientists to create an immortalized cell line.
  • An immortalized cell line is a population of cells from which would normally not proliferate indefinitely but, due to mutations, has achieved the ability to keep on dividing, never reaching the point of senescence.
• It was observed that the cells doubled every 20–24 hours unlike previous specimens that died out.

11. The obesity drugs waiting to hit the market

Subject: Science and Technology

Section: Health

Context:

• Novo Nordisk’s recent study demonstrates that its obesity drug Wegovy provides significant cardiovascular benefits in addition to its highly effective obesity treatment capabilities.
• Companies like Novo Nordisk, Eli Lilly, and Pfizer are actively pursuing a share in the lucrative obesity treatment market, which holds a potential value of up to $100 billion.

What is Obesity?

• Obesity is a chronic health condition characterized by the accumulation of excess body fat, leading to a high body mass index (BMI) of 30 or above.
• BMI Calculation: BMI is a straightforward formula where weight in kilograms is divided by the square of height in meters.

Causes and Implications of Obesity

Causes of Obesity:

• Genetic Factors: Family history and genetics influence metabolism and fat storage.
• Environmental Impact: High-calorie foods, large portions, and sedentary living contribute.
• Unhealthy Diet: Processed foods and excessive fats lead to weight gain.
• Lack of Exercise: Sedentary habits and reduced activity play a role.
• Emotional Eating: Stress-induced overeating adds to calorie intake.
• Metabolic Factors: Hormonal imbalances affect weight regulation.
• Childhood Influence: Early habits and parental behaviors persist.

Implications of Obesity:

• Cardiovascular Risks: Heart disease, hypertension, and stroke risks rise.
• Type 2 Diabetes: Obesity-related insulin resistance leads to diabetes.
• Joint Issues: Weight strains joints, causing pain and mobility problems.
• Respiratory Challenges: Obesity contributes to sleep apnea and breathing difficulties.
• Metabolic Syndrome: High blood pressure, sugar, and cholesterol elevate risks.
• Cancer Susceptibility: Obesity links to certain cancers like breast and colon.
• Psychological Impact: Depression, anxiety, and low self-esteem may result.
• Reduced Lifespan: Chronic disease risk shortens life expectancy.

Types of Treatment for Obesity:

• Dietary Modifications: Creating a calorie deficit through balanced diets and portion control.
• Physical Activity: Regular exercise helps burn calories, improve metabolism, and enhance overall well-being.
• Behavioral Therapy: Cognitive-behavioral strategies address unhealthy eating habits and promote long-term behavior change.
• Medications: Prescription drugs, such as appetite suppressants and fat absorption inhibitors, aid weight management.
• Bariatric Surgery Options: Different surgical procedures like gastric bypass, gastric sleeve, and adjustable gastric banding reduce stomach capacity.
• Multidisciplinary Approaches: Comprehensive treatment involving medical professionals, dietitians, psychologists, and physical therapists.
• Long-Term Maintenance: Focusing on sustainable lifestyle changes for weight maintenance after initial loss.

Indians Growing Fatter: NFHS-5 Data

Obesity Prevalence:

• Obesity rates in India have risen over 15 years, as per NFHS data.
• Nearly one in 16 women and one in 25 men is obese in India.
• 6.4% of women and 4.0% of men (15-49 age group) are obese.
• Obesity rates vary regionally, e.g., higher rates in Punjab, Delhi, and Goa.
• Wealth Gradient:
  • Wealthier individuals show higher obesity prevalence, especially women.
• Middle and higher-income groups experience sharper obesity increases.
  • Changing lifestyles and dietary habits contribute to this shift.
• Midlife Lifestyle:
  • Middle-aged individuals face sedentary habits and work-related pressures.
  • Reduced metabolism and hormonal changes contribute to increased obesity rates.

The following is a list of companies targeting obesity drugs:

12. Bill seeks to remove CJI from the panel that picks CEC and ECs

Subject: Polity

Section: National Body

Context:

Triggering controversy, the Union government introduced a Bill (The Chief Election Commissioner and Other Election Commissioners (Appointment, Conditions of Service and Term of Office) Bill, 2023) on Thursday to eliminate the Chief Justice of India (CJI) from the panel choosing the Chief Election Commissioner and Election Commissioners.

Transformative Supreme Court Ruling on Appointment Process

• A Constitution Bench of the Supreme Court, led by Justice K M Joseph, rendered a unanimous verdict on March 2.
• The ruling mandates the constitution of a high-power committee consisting of the Prime Minister, Leader of Opposition in Lok Sabha, and Chief Justice of India.
• The committee’s role is to select the Chief Election Commissioner (CEC) and Election Commissioners (ECs).
• The ruling introduces a pivotal change in the prevailing mechanism of appointing top election officials in India.

Present Process vs. Committee-Centric Appointments

• The prevailing procedure entails the President’s appointment based on advice from the Union Council of Ministers led by the Prime Minister.
• The new directive from the Supreme Court introduces a notable alteration.
  • A high-level committee, composed of the Prime Minister, the Leader of Opposition in Lok Sabha, and the Chief Justice of India, will now hold a crucial role in the appointments.

Balancing Powers and Involvement

• By incorporating the Leader of the Opposition and the Chief Justice of India, the ruling aimed to establish a system of checks and balances.
• This move intended to prevent any undue concentration of authority and ensure a fair and impartial selection process.

Election Commission’s Authority and Historical Context

• The vision of centralizing election machinery within the Election Commission was articulated by Babasaheb Ambedkar.
• The Constitution bestowed the Commission with extensive powers for overseeing elections.
• Legislative enactments such as The Representation of the People Act, 1950, and 1951, further delineated the Commission’s domain.

Legal Interpretation and Empowerment of the Commission

• The 1977 case of ‘Mohinder Singh Gill & Anr vs The Chief Election Commissioner, New Delhi and Ors‘ delved into Article 324.
• The SC affirmed the broad reach of Article 324 in areas not governed by legislation.
• The terms “superintendence, direction, and control” remained constitutionally potent and expansively defined.
• Legislative Framework and Terms
• The Election Commission (Conditions of Service of Election Commissioners and Transaction of Business) Act, 1991 (EC Act) outlines the terms of service for CEC and ECs.
• The stipulated term for both EC and CEC is six years under this law.

Evolution of the Commission: From Singular to Multi-Member

• The Election Commission began as a single-member body, housing only the CEC.
• A pivotal shift occurred in 1989, transforming it into a multi-member entity ahead of the ninth Lok Sabha elections.

Changing Dynamics: Expansion and Contraction

• The rationale for expansion in 1989 was rooted in tensions between the Rajiv Gandhi government and CEC R V S Peri Sastri.
• However, this multi-member structure was subsequently revoked after the Congress lost power.

Reshaping Roles: 1990s Transformation

• The 1991 Act elevated CEC to a status equivalent to a Supreme Court judge.
• ECs were granted a stature comparable to High Court judges.
• This legislation established equal decision-making authority among all Commissioners.

Alteration in Panel Composition: CJI’s Removal

• The Union government introduced a contentious Bill aiming to modify the selection panel for the Chief Election Commissioner and Election Commissioners.
• The Bill suggests the removal of the Chief Justice of India (CJI) from the panel.
• The revised panel would consist of a Cabinet Minister, the Leader of Opposition in the Lok Sabha, and the Prime Minister, who would lead the panel.
  •  An alternative scenario in case the Lower House of Parliament lacks a Leader of Opposition (LoP).
  •  The leader of the single largest Opposition party would be designated as the LoP.

Selection Process Mechanism

• The initial phase would involve preparing a panel comprising five individuals.
• This panel then undergoes consideration by the selection committee, responsible for appointing the Chief Election Commissioner and Election Commissioners.

Consequences of Neutrality and Opposition’s Concerns

• Critics promptly pointed out a potential dent in the Election Commission’s neutrality due to the revised panel composition.
• The apprehension arises from having two members of the ruling party, namely the Prime Minister and the Cabinet Minister, in the selection panel.

13. Indian GPS NavIC to be linked to Aadhaar enrolment devices

Subject: Science And technology

Section: Space technology 

NavIC Satellite Navigation for Aadhaar Enrolment Devices

• NavIC, India’s satellite navigation system, replacing American GPS in Aadhaar kits.
• Department of Space (DoS) facilitating field trials and technical input for device procurement.

NavIC: India’s Independent Satellite Navigation System

• NavIC, the Indian Regional Navigation Satellite System (IRNSS)
• NavIC comprises 7 active satellites, consisting of 3 geostationary and 4 geosynchronous satellites.
• The first satellite, IRNSS-1A, launched in July 2013, followed by the eighth, IRNSS-1I, in April 2018.
• Designated as NavIC by India’s Prime Minister in 2016.
• In 2020, the International Maritime Organization (IMO) acknowledged NavIC’s capabilities for operations in the Indian Ocean Region.

NavIC’s Services and Coverage Area

• NavIC offers Standard Position Service (SPS) for civilians and Restricted Service (RS) for strategic users.
• Services are available in L5 and S bands (1176.45 MHz and 2498.028 MHz).
• NavIC covers India and extends 1,500 km beyond its borders.
• Newer satellites to include the L1 band for civilian use.

Integration into Mobile Phones and 5G Handsets

• Indian government urging cell phone makers to incorporate NavIC compatibility.
• Hardware alterations are needed for NavIC integration into 5G handsets.
• Industry shows readiness for NavIC integration in upcoming 5G devices.

NavIC’s Role in Disaster Management

• National Disaster Management Agency (NDMA) uses NavIC for alert dissemination during natural disasters.
• Indian National Centre for Ocean Information System (INCOIS) broadcasting oceanic alerts using NavIC.

Setting NavIC Standards and Interoperability

• Collaboration with standards bodies for defining NavIC interoperability.
• Organizations involved include BIS, TSDSI, TEC, 3GPP, RTCM, IEC, and ISO.
• Efforts aimed at establishing comprehensive NavIC standards.

Why India Is Pushing Smartphone Makers To Support NavIC?

• India promoting NavIC to reduce dependence on foreign-controlled navigation systems like GPS.
• NavIC was developed to ensure navigation access in hostile situations.
• The government wants NavIC compatibility in tech devices before expanding its coverage globally.
• NavIC Grand Challenge launched for Indian startups to adopt NavIC as a geo-positioning solution.

How Government Is Pushing NavIC Adoption

• NavIC is used in public vehicle tracking systems for enhanced monitoring.
• NavIC-based vehicle trackers were made mandatory for commercial vehicles by the Union Ministry of Road Transport and Highways.
• Updated drone rules make NavIC mandatory for drone usage in India.

Chipsets Supporting India’s NavIC Navigation System

• Qualcomm launches NavIC-compatible chipsets including Snapdragon 865 and Snapdragon 765.
• New Snapdragon SoCs, Snapdragon 6 Gen 1 and Snapdragon 4 Gen 1, support multiple navigation systems including NavIC.

Why Some Countries Are Looking Beyond GPS?

• Countries exploring and deploying their own satellite navigation systems.
• Russia’s GLONASS, European Union’s Galileo, China’s BeiDou, and Japan’s QZSS (Regional) as examples.
• The shift from reliance on GPS for enhanced positioning capabilities.

14. Soon, AI will allow you make a UPI payment using voice

Subject: Science and technology

Section: Awareness in IT 

Context:

The Reserve Bank of India (RBI) is looking to make the United Payments Interface (UPI) more user-friendly by incorporating AI-driven conversational capabilities.

Conversational Payments for Seamless UPI Experience

• RBI introduces AI-driven conversational feature for UPI transactions.
• Users can securely initiate and complete payments using voice commands.
• Aims to improve user-friendliness and accessibility of UPI.

Conversational AI:

• AI-Powered Interaction: Uses artificial intelligence to engage in natural language conversations with humans.
• Simulates Human Communication: Mimics human-like responses and understanding of language.
• Chatbots and Virtual Assistants: Applied in creating chatbots, virtual assistants, and voice-enabled systems.
• Information and Assistance: Provides information, answers queries, and assists with tasks.
• Text and Voice Interactions: Works through both written and spoken interactions.
• Enhanced User Experiences: Improves user engagement and interaction in various applications.

Increased Transaction Limits with Risk Management

• The transaction limit for offline small-value payments was raised to ₹500.
• Overall limit at ₹2,000 per payment instrument to balance convenience and security.
• Focus on maintaining a secure transaction environment.

Multilingual Expansion of Conversational Payments

• Initial launch in English and Hindi, with plans for more languages.
• RBI to guide NPCI in implementing multilingual support.
• Goal is to enhance inclusivity and reach across India.

AI Integration and Real-time Transactions

• Real-time transactions are facilitated through AI-powered chatbots.
• Swift, secure, and transparent payment process.

Offline Transactions with NFC Technology

• RBI’s proposal for NFC-enabled offline UPI transactions.
• NFC technology enables quick offline payments over short distances.
• Anticipated rise in UPI-Lite‘s offline transactions.
• NFC (Near Field Communication) is a close-range wireless technology for secure data exchange between devices, typically within a few centimeters of each other.

Enhanced Limits for Offline Payments

• Transaction limit for offline payments increased to ₹500.
• NCMC and UPI Lite facilitate speedy and contactless small payments.
• Encouraging broader adoption of convenient digital payment methods.

Unified Payments Interface (UPI): Overview

• Developed by the National Payments Corporation of India (NPCI) for seamless transactions.
• Enables fund transfers between any two bank accounts using smartphones.
• Facilitates direct payments to merchants both online and offline, eliminating traditional inputs.
• Integrates various banking functions, simplifying financial operations.
• Launched in April 2016, gained immense popularity among users.

Key Features and UPI 2.0

• UPI 2.0 brought advanced features to the platform.
  • Invoice verification empowers users to validate merchant invoices before payment.
  • One-time mandate feature permits pre-authorized transactions for convenience.
  • Overdraft accounts can now be linked, expanding payment options.
  • QR code authentication enhances transaction security, ensuring authenticity.
• Cross-Border Payments – Singapore, UAE, Mauritius, Nepal, Bhutan, France.
• UPI123 PAY – UPI payments over a phone call.

How UPI Works

• National Payments Corporation of India (NPCI) is UPI’s operational overseer.
• Users initiate transactions by providing recipient and amount details.
• Robust authentication verifies user identity and transaction authorization.
• NPCI processes transactions in real-time for swift fund transfer.
• The real-time settlement ensures efficient movement of funds between bank accounts.

About National Payments Corporation of India (NPCI)

• NPCI plays a pivotal role in managing retail payments and settlements.
• Established through collaboration between the Reserve Bank of India (RBI) and Indian Banks’ Association.
• Operates under the framework of the Payment and Settlement Systems Act, 2007.
• Aims to establish a robust payment infrastructure, fostering innovation and efficiency.

15. What are China’s ‘sponge cities’ and why aren’t they stopping the floods?

Subject: Geography

Section: Physical Geography 

China’s ‘Sponge Cities’ Initiative

• Launched in 2015 to enhance flood resilience and manage rainwater in urban areas.
• Aims to use nature-based solutions for water distribution, drainage, and storage.
• Solutions include permeable asphalt, canals, ponds, and wetland restoration.
• Intends to reduce the negative impacts of urbanization on water management.

Rationale:

• Urbanization led to impermeable concrete covering floodplains and wetlands.
• This resulted in increased flooding and waterlogging due to a lack of water absorption.
• Traditional floodplains and natural wetlands are replaced by concrete surfaces.
• Rainwater cannot infiltrate, causing surface runoff and overwhelming drainage systems.

Implementation and Challenges:

• Pilot initiatives showed positive outcomes, but implementation varies across cities.
• Lack of consistent implementation attributed to limited attention from the government.
• Researchers emphasize the need for strong national legislation to ensure widespread adoption.
• Challenges include retrofitting existing urban infrastructure and funding large-scale projects.

Limitations:

• Even if fully implemented, unable to prevent extreme events like recent floods.
  • Example: Zhengzhou allocated funds but faced overwhelming rainfall in 2021.
• Sponge City infrastructure can handle limited rainfall, around 200 mm per day.
• Extreme rainfall events exceed the capacity of sponge city measures.
• Limits of sponge cities underscore the need for comprehensive flood management strategies.

Climate Change Impact:

• Climate change adds complexity to flood management.
• Areas like northern China experience heavier rainfall due to shifting climate patterns.
• Changing rainfall patterns challenge the effectiveness of existing drainage systems.
• Climate adaptation measures must align with evolving climate conditions.

Recent Floods and Statistics:

• Devastating floods hit China recently, causing deaths, damage, and questions about the initiative.
• July floods caused 142 deaths, destroyed 2,300 homes, and economic losses of $2.19 billion.
• 641 out of 654 cities are vulnerable to flooding and waterlogging according to 2018 data.

Sponge City Concept:

• Purpose: Manage urban water challenges with nature-based solutions.
• Approach: Permeable surfaces, green spaces, sustainable drainage systems.
• Features: Permeable pavements, green roofs, rain gardens, and wetland restoration.
• Integration: Balance development with ecology for sustainable water management.

Pros:

• Flood Mitigation: Reduces runoff, minimizes flooding.
• Water Quality: Natural filtration enhances water quality.
• Climate Resilience: Adapts to changing rainfall patterns.
• Ecosystem Benefits: Increases green spaces, and biodiversity.
• Community Engagement: Creates greener, livable urban environments.

Cons:

• Complex Implementation: Retrofitting existing areas can be costly.
• Limited Scalability: Not suitable for all densely built regions.
• Maintenance: Requires ongoing care of green spaces, and systems.
• Space Constraints: Urban density may limit sponge feature availability.
• Technical Expertise: Needs urban planning, hydrology knowledge.
• Extreme Rainfall: May be overwhelmed by intense rainfall events.

Future Trends:

• Smart Integration: Monitor, manage with technology.
• Nature-Based Infrastructure: Merge with traditional engineering.
• Ecosystem Services: Utilize for energy, carbon management.
• Global Collaboration: Share experiences for adaptable models.

Countries with Adoption:

• China: Pioneered “Sponge City” initiative.
• Singapore: “ABC Waters Program” for urban water bodies.
• USA: “Green City, Clean Waters” in Philadelphia.
• Australia: “Water Sensitive Urban Design” in Melbourne.
• Malaysia: “River of Life” project in Kuala Lumpur.
• India:  “Smart Cities Mission” promotes sustainable urbanization, and cities like Surat and Pune integrate permeable pavements and flood-resilient planning to manage water effectively.