Daily Prelims Notes 31 May 2021

May 31, 2021
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Daily Prelims Notes

31 May 2021

Table Of Contents

1. RBI MAY KEEP REPO RATE UNCHANGED

Subject: Economics

Context: RBI likely to keep repo rate unchanged at monetary policy meet next week.

Concept:

The RBI had kept key interest rates unchanged after the last the MPC meeting held in April.
The key lending rate, the repo rate, was kept at 4 per cent and the reverse repo rate or the central bank’s borrowing rate at 3.35 per cent.

Repo and Reverse Repo Rate:

Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Here, the central bank purchases the security.
Reverse repo rate is the rate at which the RBI borrows money from commercial banks within the country.

Liquidity Adjustment Facility (LAF):

It is a tool used in monetary policy by the RBI, that allows banks to borrow money through repurchase agreements (repos) or for banks to make loans to the RBI through reverse repo agreements.

Monetary Policy Committee

The Monetary Policy Committee is a statutory and institutionalized framework under the Reserve Bank of India Act, 1934, for maintaining price stability, while keeping in mind the objective of growth.
An RBI-appointed committee led by the then deputy governor Urjit Patel in 2014 recommended the establishment of the Monetary Policy Committee.
The Governor of RBI is ex-officio Chairman of the committee.
The committee comprises six members (including the Chairman) – three officials of the RBI and three external members nominated by the Government of India.
Decisions are taken by majority with the Governor having the casting vote in case of a tie.
The MPC determines the policy interest rate (repo rate) required to achieve the inflation target (4%).

2. Monsoon onset over Kerala delayed : IMD

Subject : Geography

Context : Monsoon is likely to hit India’s southwestern coast around June 3 instead of the regular onset date of June 1, the India Meteorological Department (IMD) said on Sunday.

Concept :

The southwest monsoon was earlier expected to hit Kerala on May 31, but the IMD said that a cyclonic circulation along the Karnataka coast is halting its progress.

Onset of Monsoon

The normal date of onset of the southwest monsoon over Kerala i.e. the first place of entry in the mainland of India is 1st June.
The monsoons advance quickly accompanied with a lot of thunder, lightning and heavy downpour. This sudden onset of rain is termed as monsoon burst.
Sometimes monsoons are delayed or they come much earlier than normal.
Normally the onset occurs between 29th May and 7th June.
The earliest onset was on 11th May in 1918 and 1955, while the most delayed onset was on 18th June in 1972.

The criteria for Onset of monsoon are:

Rain-bearing westerlies being at a minimum depth and speed.
At least 60% of the available 14 stations in Kerala and coastal Karnataka reported rainfall of 2.5 mm or more for two consecutive days after May 10.
A certain degree of clouding, indicated by a parameter called ‘outgoing longwave radiation’ (OLR), being below 200 W/square metre.
Currently, IMD’s own data indicated that except for the OLR, the other criteria were met. Thus, there is an element of subjectivity in arrival.

3. ECONOMY SHOWING SYMPTOMS OF STAGFLATION

Subject : Economics

Context: Expansionary fiscal policy, especially increased govt spending, is needed to overcome the pandemic-induced disruptions.

Concept :

Stagflation

It is a seemingly contradictory condition described by slow economic growth and relatively high unemployment, or economic stagnation, which is at the same time accompanied by rising prices (i.e. inflation).
Stagflation can also be alternatively defined as a period of inflation combined with a decline in gross domestic product (GDP).
Typically, inflation rises when the economy is growing fast. That’s because people are earning more and more money and are capable of paying higher prices for the same quantity of goods.
When the economy stalls, inflation tends to dip as well – again because there is less money now chasing the same quantity of goods.

When does stagflation occur?

Stagflation is said to happen when an economy faces stagnant growth as well as persistently high inflation.
That’s because with stalled economic growth, unemployment tends to rise and existing incomes do not rise fast enough and yet, people have to contend with rising inflation.
So people find themselves pressurized from both sides as their purchasing power is reduced.

4. NATIONAL MUSEUM MAKEOVER FOR G20 2023 MEET

Subject : Current Events/ Culture

Context : The National Museum, which is supposed to move to a new location as part of the Central Vista redevelopment project, is currently undergoing expansion and an extensive makeover, and is likely to remain at its present premises on Janpath for at least another “five or six years”, sources told The Indian Express.

Concept :

National Museum

It is established in 15th August 1949, functioning as a Subordinate Office under Ministry of Cul- ture since 1960, formally inaugurated on 18 December 1960.
It is located in the Darbar Hall of the RashtrapatiBhawan, New Delhi.
Activities: Acquisition of art objects, their ex- hibition and conservation.
Coordinates the ‘Festival of India’ in various countries.
It has now 26 galleries with new addition of Bud- dhist Art gallery, Decorative Arts gallery, Jew- ellery Gallery, anjore and Mysore School of Painting, Evolution of Indian Scripts and Coins Gallery etc.

5. HOW IAS OFFICERS ARE PUT ON CENTRAL DEPUTATION?

Subject : Governance

Context :West Bengal Chief Secretary Bandyopadhyay, an IAS officer of the 1987 batch, was due to begin an extension of three months after retiring. Instead, the Centre has asked him to join the Government of India.

Concept :

Rule 16(1) of DCRB (Death-cum-Retirement Benefit) Rules says that “a member of the Service dealing with budget work or working as a full-time member of a Committee may be given extension of service for three months, with the prior approval of the Central Government”.
For an officer posted as Chief Secretary of a state, this extension can be for six months.

Central deputation

In normal practice, the Centre asks every year for an “offer list” of officers of the All India Services (IAS, IPS and Indian Forest Service) willing to go on central deputation, after which it selects officers from that list.
Rule 6(1) of the IAS Cadre Rules says an officer may, “with the concurrence of the State Governments concerned and the Central Government, be deputed for service under the Central Government or another State Government…”
It says “in case of any disagreement, the matter shall be decided by the Central Government and the State Government or State Governments concerned shall give effect to the decision of the Central Government.”

6. ALL INDIA DEMOCRATIC WOMEN ASSOCIATION

Subject : National Organisations

Context : Veteran CPI(M) leader MythiliSivaraman, known for co-founding the All India Democratic Women’s Association, passed away in Chennai while undergoing treatment for Covid-19.

Concept :

All India Democratic Women’s Association

It is an independent left oriented women’s organisation committed to achieving democracy, equality and women’s emancipation.
It was founded in 1981 as a national level mass organisation of women.
It is also the women’s wing of the Communist Party of India (Marxist).
Its members are from all strata in society, regardless of class, caste and community. About two-thirds of the organization’s strength is derived from poor rural and urban women.
It upholds secular values and challenges and resists cultural practices demeaning to women and believes that the emancipation of women in India requires fundamental systemic change.

7. IS TEST POSITIVITY A GOOD CONDUCTOR OF COVID CASELOAD?

Subject : Science & tech

Context: The second surge in the pandemic has been rather alarming. The number of positive cases has been rising in much of the country, in urban as well as rural areas, since the middle of March.

Concept :

Test positivity is a good benchmark at the earliest stages of the epidemic. Once the infection has spread sufficiently through the population, the chain of infection is no longer clear.
In such situation, the test positivity may not reduce even when the number of tests is increased. This is a bad situation of course, since it is indicative of widespread infection, with many asymptomatic cases.
Test positivity can be also used as an indicator to mark the decline of the epidemic. As the epidemic ends, the number of tests being done will decline and the test positivity is likely to stay constant or decline as well.
However, as the number of tests decline, if an increase of test positivity is observed, then the reduction in the number of tests should be taken as a matter of concern. It is then necessary to increase the number of tests.
As we saw, test positivity by itself does not give enough information to understand the progress of the epidemic at all stages.
Moreover, there can be many infected people who are asymptomatic and who therefore remain undetected.
Such asymptomatic people can infect others, and it is necessary to estimate their number to understand the progression of the epidemic. That is where the Case Fatality Rate (CFR) comes into play.

Case fatality rate

Case fatality rate, also called case fatality risk or case fatality ratio, in epidemiology, the proportion of people who die from a specified disease among all individuals diagnosed with the disease over a certain period of time.
Case fatality rate typically is used as a measure of disease severity and is often used for prognosis (predicting disease course or outcome), where comparatively high rates are indicative of relatively poor outcomes.

8. ROLE OF T-CELLS IN HELPING CANCER PATIENT AMIDST COVID 19

Subject : Science & tech

Context :Researchers at the University of Pennsylvania, US, found that blood cancer patients with Covid-19 who had higher CD8 T cells, many of whom had depleted antibodies from cancer treatments, were more than three times more likely to survive than patients with lower levels of CD8 T cells.

Concept :

Antibodies aren’t the only immune cells needed to fight off Covid-19, T cells are equally important and can step up to do the job when antibodies are depleted, suggests a new study of blood cancer patients with coronavirus.

T- Cells

T Cells also called T lymphocyte, type of leukocyte (white blood cell) that is an essential part of the immune system.
T cells are one of two primary types of lymphocytes—B cells being the second type—that determine the specificity of the immune response to antigens (foreign substances) in the body.
T cells originate in the bone marrow and mature in the thymus.

Why are they called memory cells?

In the thymus, T cells multiply and differentiate into helper, regulatory, or cytotoxic T cells or become memory T cells.
They are then sent to peripheral tissues or circulate in the blood or lymphatic system.
Once stimulated by the appropriate antigen, helper T cells secrete chemical messengers called cytokines, which stimulate the differentiation of B cells into plasma cells (antibody-producing cells).

How do they control immunity?

Regulatory T cells act to control immune reactions, hence their name.
Cytotoxic T cells, which are activated by various cytokines, bind to and kill infected cells and cancer cells.
Because the body contains millions of T and B cells, many of which carry unique receptors, it can respond to virtually any antigen.

9. REVISING CLAIMS ONCE RESOLUTION PLAN APPROVED BY NCLT NOT POSSIBLE

Subject : Governance

Context : The Chennai Bench of the National Company Law Appellate Tribunal (NCLAT) has ruled that once a resolution plan for a debt-laden corporate entity is approved, even government-bodies like the Employees Provident Fund Organisation (EPFO) cannot revise their claims.

Concept :

About NCLT:

It is a statutory body constituted under the section 408 of the Companies Act, 2013.
The current NCLT traces its formation to the recommendations of the Justice Eradi Committee which was set up by Central Government in the year 1998
It is a quasi-judicial authority incorporated for dealing with corporate disputes that are of civil nature arising under the Companies Act.
It has power to regulate its own procedures.
The NCLT composition is of the President and other Judicial and Technical members, to exercise and discharge powers and functions as prescribed by the Act or any other power delegated to them by way of any other enactment or a Notification by Ministry Of Corporate Affairs.
Appeals against the order of the NCLT will go to NCLAT, exclusively dedicated for this purpose.

It has been given jurisdiction over:

Board for Industrial and Financial Reconstruction. (“BIFR”)
The Appellate Authority for Industrial and Financial Reconstruction. (“AAIFR”)
Jurisdiction and powers relating to winding up restructuring and other such provisions, vested in the High Courts.
Company Law Board (“CLB”).

10. ESIC – EPFO – EDLI SCHEME

Subject : Government Schemes

Context : The Ministry of Labour and Employment on Sunday announced additional benefits for workers through social securities schemes run by the EPFO and the ESIC amid the COVID-19 pandemic.

Concept :

These benefits include pension for dependents of insured persons with Employees” State Insurance Corporation (ESIC) who died due to COVID-19 and hike in maximum sum assured under the group insurance scheme Employees” Deposit Linked Insurance Scheme (EDLI), run by Employees” Provident Fund Organisation (EPFO), to Rs 7 lakh from Rs 6 lakh.

EDLI Scheme

The EDLI scheme was launched in 1976 to provide insurance benefits to members of EPFO.
The main objective of EPFO behind this scheme was to ensure that the family of members get financial assistance in case of death of the member. There is no exclusion under this insurance scheme.
The insurance cover depends on the salary drawn in the last 12 months of the employment before death.

Salient Features of EDLI

The insurance benefits can be availed by the family members, legal heirs or nominees of the member.
Members of EPFO are automatically enrolled for EDLI.
An EPFO member is only covered by the EDLI scheme as long as he/she is an active member of the EPF. His family/heirs/nominees cannot claim it after he leaves service with an EPF registered company.
There is no minimum service period for availing EDLI benefits
The employer has to make the contribution for EDLI and no fee can be deducted from the employee’s salary
The claim amount under ELDI is 35 times the average monthly salary in the past 12 months subject to a maximum of 7 lakh.
The average monthly salary is calculated as the Basic + Dearness Allowance of the employee
A bonus of Rs. 1.75 Lakhs is also applicable under this scheme
The employer can opt out of the scheme in case he takes a higher paying life insurance scheme for employees under Section 17 (2A)

11. WEST AFRICAN LEADERS MEET TO DISCUSS MALI

Subject : International Relations

Context : West African leaders were due to meet in Ghana ahead of a extra ordinary of sumit of ECOWAS , to discuss a response to Mali’s second coup in last nine months.

Concept :

Since 1960, when Mali gained independence from France, there have been five coups — and only one peaceful transition from one democratically elected president to another.
Recent coup: Nine months ago, President Ibrahim Boubacar Keita was overthrown in the wake of mass anti-government protests. Last week, the announcement of a new cabinet was made that excluded two key military leaders. Following this, the army has detained the President and the Prime Minister.

About ECOWAS:

It is a regional political and economic union of fifteen countries located in West Africa.
Established in 1975, with the signing of the Treaty of Lagos.
The goal of ECOWAS is to achieve “collective self-sufficiency” for its member states by creating a single large trade bloc by building a full economic and trading union.
It also serves as a peacekeeping force in the region.
Considered one of the pillar regional blocs of the continent-wide African Economic Community (AEC).

ECOWAS includes two sub-regional blocs:

The West African Economic and Monetary Union is an organisation of eight, mainly French-speaking states.
The West African Monetary Zone (WAMZ), established in 2000, comprises six mainly English-speaking countries.

Sahel region of Africa

It is a semi-arid region of western and north-central Africa extending from Senegal eastward to Sudan.
It forms a transitional zone between the arid Sahara (desert) to the north and the belt of humid savannas to the south.
The Sahel stretches from Senegal on the Atlantic coast, through parts of Mauritania, Mali, Burkina Faso, Niger, Nigeria, Chad and Sudan to Eritrea on the Red Sea coast.

12. ASSAM TO INCREASE FIREPOWER OF KAZIRANGA GUARDS

Subject : Environment

Context : The Assam government has approved a proposal to increase the firepower of the guards of Kaziranga National Park and Tiger Reserve and provide commando training to them. These measures are aimed at preventing poaching.

Concept :

It is located in the State of Assam and covers 42,996 Hectare (ha). It is the single largest undisturbed and representative area in the Brahmaputra Valley floodplain.

Status of the National park:

It was declared as a National Park in 1974.
It has been declared a tiger reserve since 2007. It has a total tiger reserve area of 1,030 sq km with a core area of 430 sq. km.
It was declared a UNESCO World Heritage Site in 1985.
It is recognized as an Important Bird Area by Bird Life International.

Important Species Found:

It is the home of the world’s most one-horned rhinos. Pobitora Wildlife Sanctuary has the highest density of one-horned rhinos in the world and second highest number of Rhinos in Assam after Kaziranga National Park.
Much of the focus of conservation efforts in Kaziranga are focused on the ‘big four’ species— Rhino, Elephant, Royal Bengal tiger and Asiatic water buffalo.
Kaziranga is also home to 9 of the 14 species of primates found in the Indian subcontinent.

Rivers and Highways:

The National Highway 37 passes through the park area.
The park also has more than 250 seasonal water bodies, besides the Diphlu River running through it.

Other national parks in Assam are:

Dibru-Saikhowa National Park,
ManasNational Park,
Nameri National Park,
Rajiv Gandhi Orang National Park.

13. THE LAST ‘FOREIGNER’ WALKED OUT OF ONE OF THE DETENTION CENTRE IN ASSAM

Subject : Governance

Context :Manindra Das- the last “foreigner” has walked out of one of the six detention centres in Assam, leaving about 170 more to be released from the other five.

Concept :

Mahindra Das was tagged a ‘D-voter’ in 2015 and later declared a “foreigner” in a one-sided decision by a Foreigners’ Tribunal in 2019.

D-voter, or doubtful voter

Those persons whose citizenship was doubtful or was under dispute were categorized as ‘D- Voters’ during the preparation of National Register of Citizens in Assam.
They have not been defined in the Citizenship Act, 1955 or the Citizenship Rules of 2003.

Who is a declared foreigner?

A declared foreigner, or DF, is a person marked by Foreigners’ Tribunal (FT) for allegedly failing to prove their citizenship after the State police’s Border wing marks him or her as an illegal immigrant.

Foreigners tribunal

The Foreigner tribunals are set up under the Foreigners (Tribunals) Order, 1964.
The tribunals are quasi-judicial bodies, to determine if a person staying illegally is a “foreigner” or not.
Composition: Advocates not below the age of 35 years of age with at least 7 years of practice (or) Retired Judicial Officers from the Assam Judicial Service (or) Retired IAS of ACS Officers (not below the rank of Secretary/Addl. Secretary) having experience in quasi-judicial works.
The Ministry of Home Affairs (MHA) has amended the Foreigners (Tribunals) Order, 1964, and has empowered district magistrates in all States and Union Territories to set up tribunals (quasi-judicial bodies) to decide whether a person staying illegally in India is a foreigner or not.
Earlier, the powers to constitute tribunals were vested only with the Centre.
The amended order (Foreigners (Tribunal) Order, 2019) also empowers individuals to approach the Tribunals.
Earlier, only the State administration could move the Tribunal against a suspect

14. CHINA’s SPACE STATION PLAN GATHERS PACE

Subject: Science & tech

Context: China took another step towards completing the construction of its first space station by the end of next year following the launch and docking of a cargo spacecraft.

Concept:

The Tianzhou-2 cargo spacecraft, described by as “the delivery guy for China’s space station”, was launched on a Long March-7 rocket from the island of Hainan, and docked eight hours later with the space station’s first core module called Tianhe, or “heavenly harmony”.
The Tianzhou-2 spacecraft carried a range of supplies, the China Manned Space Agency (CMSA) said, and will be followed by the launch of another cargo spacecraft, Tianzhou-3, and two manned missions, Shenzhou-12 and Shenzhou-13, this year, each carrying three astronauts who will spend several months in orbit.
The Shenzhou-12 launch is slated for mid-June.

China’s Space Station:

The new, 66-tonne, multi-module Tiangong station is set to be operational for at least 10 years.
Tianhe is one of three main components of what would be China’s first self-developed space station, rivalling the only other station in service – the ISS.
It forms the main living quarters for three crew members in the Chinese space station.
The Tianhe launch is the first of 11 missions needed to complete the space station, which will orbit Earth at an altitude of 340 to 450 km.
In the later missions, China will launch the two other core modules, four manned spacecraft and four cargo spacecraft.