Daily Prelims Notes 9 May 2023

May 9, 2023
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

9 May 2023

Table Of Contents

1. RBI wants banks to sign new locker agreement with clients

Subject: Economy

Section: Monetary Policy

Context: Users of lockers will have to sign a fresh agreement with their respective banks, The Reserve Bank of India asking for revisions in the existing document.

Details:

What is the new regulation regarding lockers?

The revised safe deposit locker agreements now clearly specify that lockers can be used only for legitimate purposes such as storing jewellery and documents and not for storing any cash or currency, arms, weapons, drugs, contraband, or hazardous substances.
The license granted to use the locker is only for the customer’s own use and is non-transferable.
The agreements, which are based on the Indian Banks’ Association’s model agreement, state that the customer will be responsible for the misuse of the key to the locker provided by the bank or the password generated for having access to the locker. The bank will not be responsible for any unauthorised use of a key or password. The customer will have a right to use the locker for keeping belongings and expect reasonable care by the bank for protecting such belongings, and in case of the bank’s failure to do so, avail of such remedies as may be available from time to time under the applicable law and regulations.
Banks will bear the cost of stamp papers while executing supplementary agreements with existing locker-hirers only. For others, the cost of stamp paper will be borne by the customers.
The bank will have the right to recover the rent and any other cost incurred by the bank in relation to the locker to the debit of the customer’s account in the event the same is not paid by the customer in advance or when due, per the model agreement
Further, a bank can refuse access to the locker if the rent due on the locker remains unpaid and a customer fails to provide proof of identity when demanded by the bank at the time of seeking access to the locker.

2. Kerala seed farm declared as first carbon neutral farm

Subject :Environment

Section: Climate change

Context: Kerala Chief Minister declared a seed farm, located in Aluva here, as the first carbon neutral farm in the country.

More on the News:

A significant reduction in carbon emission has helped the seed farm, under the Agricultural Department, achieve carbon neutral status.
The total amount of carbon emission from the farm, located at Thuruthu in Aluva, in the last one year was 43 tons but its overall procurement was 213 ton.
Compared to the emission rate, as many as 170 tons of more carbon have been procured at the farm, which helped it to be declared as the first carbon neutral seed farm in the country.
The Kerala state will introduce carbon-neutral farming methods in selected locations, for which the government has allocated ₹6 crore in the 2022-23 Budget.
In the first phase, carbon-neutral farming will be implemented in 13 farms under the Agriculture department and tribal areas, and steps are on to convert the State Seed Farm at Aluva a carbon-neutral farm.
In the second phase, model carbon-neutral farms will be developed in all the 140 Assembly constituencies.

Carbon Neutral Farming

Carbon neutral farming refers to the practice of agricultural methods that do not emit more carbon than they sequester from the atmosphere.
It involves implementing practices that reduce greenhouse gas emissions and promoting methods that increase carbon sequestration. Examples of carbon neutral farming practices include reducing the use of fossil fuels, promoting the use of renewable energy sources, reducing tillage, and promoting cover crops.
Improving soil health through integrated farming methods, rotation of crops, adoption of fertigation, precision farming methods, changing the ways in which the soil is irrigated and limiting the indiscriminate use of fertilizers were important for preventing soil degradation and thus reducing carbon footprint in agriculture.

Need for Carbon-neutral farming:

Climate change mitigation: Agriculture is one of the major contributors to greenhouse gas emissions, which are the primary cause of climate change. Carbon-neutral farming can help to mitigate these emissions by reducing the use of fossil fuels and sequestering carbon in the soil.
Soil health: Carbon-neutral farming practices can improve soil health by increasing the organic matter content in the soil. This, in turn, improves soil structure, water-holding capacity, and nutrient availability.
Biodiversity: Carbon-neutral farming practices can promote biodiversity by providing habitat for wildlife and promoting the growth of native plant species.
Food security: Carbon-neutral farming practices can help to ensure food security by promoting sustainable agriculture and reducing the risk of crop failures due to climate change.
Economic benefits: Carbon-neutral farming can provide economic benefits by reducing input costs and increasing yields over the long term. It can also create new income streams for farmers through carbon credit markets.

3. HC don’t have powers to direct changes to ST list : CJI

Subject : Polity

Section: Constitution

Concept :

The Chief Justice of India questioned why a 23-year-old Constitution Bench decision that clearly stated that no court or state has the authority to “add, subtract, or modify” the Scheduled Tribes List was not “shown” to the Manipur High Court.

Details

The Chief Justice stated that a High Court does not have the authority to make amendments to the Scheduled Tribes List. Designating a Scheduled Caste or Scheduled Tribe is a Presidential authority.
The Constitution Bench in State of Maharashtra v/s Milind (2000) concluded that State governments, courts, tribunals, or any other body have no authority to modify, amend, or alter the list of Scheduled Tribes (STs).

Background

In a recent case, the Manipur High Court declared that a community called Meitei/Meetei, which is not included in the STs list, should be considered a Scheduled Tribe.
The court also directed the state government to initiate the process of inclusion of this community in the list.
The protest against the order of the High Court resulted in the violence and death of more than 60 people.
The Manipur High Court decision was challenged in the Supreme Court, which stayed the order of the High Court.

The Supreme Court Observation

The Supreme Court also observed that the Manipur High Court had overlooked a landmark judgment of a five-judge Constitution Bench in 1997, which clearly stated that no court or state has the authority to “add, subtract, or modify” the Scheduled Tribes List.
The Chief Justice of India, who was heading the bench hearing the case, questioned why this judgment was not “shown” to the Manipur High Court.
Chief Justice remarked that such judicial interference in matters of policy and legislation would create chaos and confusion.

Scheduled Tribes List

It is a constitutional document that recognizes the rights and privileges of certain communities in India that are considered to be historically disadvantaged and marginalized.
The list is not static but can be amended by the Parliament of India under Article 342 of the Constitution.

Process of adding to the ST List:

The process of adding tribes to the ST list starts with a recommendation from the State governments.
It is sent to the Tribal Affairs Ministry, which reviews and sends them to the Registrar General of India, Under the Home Ministry for approval.
After approval, it is sent to the National Commission for Scheduled Tribes and then sent to the Cabinet for a final decision.
Once the cabinet finalizes it, then it introduces a bill in the parliament to amend the Constitution (Scheduled Castes) Order, 1950, and the Constitution (Scheduled Tribes) Order, 1950.
After the amendment bill is passed by both the Lok Sabha and Rajya Sabha, the President’s office takes the final decision under Articles 341 and 342 of the Constitution.

4 Arab League

Subject: International Relations

Section: International Organization

Concept :

The Arab League voted to reinstate Syria’s membership after its suspension more than 10 years ago, underlining the thawing relations between Damascus and other Arab countries.

Background

Syria was ousted from the Arab League in 2011 following President Bashar al-Assad’s brutal crackdown on pro-democracy protests, which led to the ongoing civil war in the country.
The conflict has since killed around half of a million people and displaced about 23 million.
The ruling, which allows Assad to attend the upcoming Arab League Summit in Saudi Arabia on May 19, has also called for a resolution of the civil war and the resulting refugee and drug smuggling crises.

Causal factors for reinstation

The Arab League’s decision is the culmination of Assad’s diplomatic efforts to return to the fold, which gained momentum after this February’s massive earthquake in Turkey and Syria.
Assad has received a favourable response from several Arab nations like Egypt and Oman not just because they wanted to help the earthquake victims.
Experts believe these countries have realised they need to end Damascus’ isolation for the stability of West Asia.
Moreover, they want some sort of repatriation of refugees back into Syria and a curb on the trade of captagon, a highly addictive amphetamine produced in the country.
The international community outside of the region – Russia aside – has largely washed its hands of responsibility for Syria. There is a vacuum and this is where the regional powers have come in.
Another catalyst in Syria’s rehabilitation is the China-brokered re-establishment of diplomatic relations between regional powerhouse Saudi Arabia and its arch enemy, Iran.

About the Arab League

Formally the League of Arab States, it is a regional organization in the Arab world, which is located in Northern Africa, Western Africa, Eastern Africa, and Western Asia.
The Arab League was formed in Cairo on 22 March 1945, initially with six members: Egypt, Iraq, Transjordan, Lebanon, Saudi Arabia, and Syria.
The official headquarters of the League was the Boustan Palace in Cairo.
A common market was established in 1965.

Membership

Currently, the League has 22 members.
The Charter of the Arab League, also known as the Pact of the League of Arab States, is the founding treaty of the Arab League. Adopted in 1945, it stipulates that “the League of Arab States shall be composed of the independent Arab States that have signed this Pact.”
22 member states: Algeria, Bahrain, Comoros, Djibouti, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Mauritania, Morocco, Oman, Palestine, Qatar, Saudi Arabia, Somalia, Sudan, Syria, Tunisia, United Arab Emirates and Yemen. (Iran – NOT a Member )
5 observer states: Armenia, Brazil, Eritrea, India and Venezuela.

5. RBI gold reserves rise to 794.64 tonnes

Subject : Economy

Section: External Sector

Concept :

RBI has increased its gold reserves by 34.22 tonnes YoY to reach 794.64 tonnes at the end of March 2023, according to the central bank’s data.
Gold is considered a safe-haven asset and has been historically used to back a country’s currency.

Significance of Gold Reserves

Economic stability: Gold reserves are often seen as a symbol of economic stability and confidence, especially during times of financial crisis or uncertainty. Holding gold reserves can help central banks to maintain the stability of their currency and the economy.
Diversification: Gold is considered a safe-haven asset and can provide diversification to a country’s foreign exchange reserves portfolio. Diversification helps to reduce the risks associated with any single asset class.
Hedge against inflation: Gold is considered an inflation hedge as its value tends to increase during times of high inflation or when the value of a currency is depreciating. Holding gold reserves can help to protect the purchasing power of a country’s currency.
International transactions: Gold reserves can be used as collateral for loans and international transactions. Countries can also use gold reserves to settle international debts.
Confidence-building: The level of a country’s gold reserves can be an indicator of the country’s financial strength and stability. High levels of gold reserves can help to build confidence among investors and other countries.

Breakdown of RBI’s gold reserves

Total: As of March-end 2023, the RBI held 794.64 metric tonnes of gold, including gold deposits of 56.32 metric tonnes.
Domestic and abroad: Out of the total gold reserves, 22 metric tonnes of gold is held overseas in safe custody with the Bank of England and the Bank of International Settlements (BIS), while 301.10 metric tonnes of gold is held domestically.

How much do these gold reserves value?

In value terms (USD), the share of gold in the total foreign exchange reserves increased from about 7.06% as of September-end 2022 to about 7.81% as of March-end 2023, as per the RBI’s report.
During the half-year period, the reserves increased from $532.66 billion as of September-end 2022 to $578.45 billion as of March-end 2023.

Foreign Exchange (Forex) Reserve

Foreign exchange reserves are important assets held by the central bank in foreign currencies as reserves.
They are commonly used to support the exchange rate and set monetary policy.
In India’s case, foreign reserves include Gold, Dollars, and the IMF’s quota for Special Drawing Rights.
Most of the reserves are usually held in US dollars, given the currency’s importance in the international financial and trading system.
Some central banks keep reserves in Euros, British pounds, Japanese yen, or Chinese yuan, in addition to their US dollar reserves.
India’s forex reserves cover:
- Foreign Currency Assets (FCAs)
- Special Drawing Rights (SDRs)
- Gold Reserves
- Reserve position with the International Monetary Fund (IMF)

6. Title 42

Subject : International Relations

Section: International conventions

Concept :

The COVID restrictions, known as Title 42, will expire at the US-Mexico border; it was initially enacted by the former President of the United States Donald Trump in March 2020.

Details of Title 42 Law

“Title 42” is a public health order that was invoked by the Trump administration in March 2020 to expel most migrants caught at the U.S.-Mexico border without allowing them to seek asylum.
The order was based on the premise that migrants posed a risk of spreading COVID-19 in detention facilities and communities. However, many critics argued that Title 42 was a pretext to restrict immigration and violate human rights.
Recently, the USA President announced lifting Title 42. This means that migrants who cross the border will be able to request asylum, a legal right under U.S. and international law.
The administration expects a surge in border crossings, as many migrants have been waiting in Mexico or other countries for a chance to enter the U.S.

Significance

The end of Title 42 marks a significant shift in U.S. border policy, with humanitarian and political implications.
On one hand, it restores the right to seek asylum for thousands of people fleeing violence, persecution and poverty in their home countries.
On the other hand, it poses a challenge for the administration to manage the influx of migrants, while balancing public health concerns, human rights obligations and public opinion.