Daily Prelims Notes 1 November 2022
- November 1, 2022
- Posted by: OptimizeIAS Team
- Category: DPN
Daily Prelims Notes
1 November 2022
Table Of Contents
- Ban use of aceclofenac on cattle to save vultures
- GM mustard field trials to begin from rabi season
- How suspension bridges work, and what could have happened in Gujarat’s Morbi
- Yamuna frothing: What causes froth in the river and why is it dangerous
- Government Spending
- EPFO Norms
- RBI e-rupi
- TRIPS
- Fifty Years of Indian Banking Through the Lens of Basic Statistical Returns –‘BSR@50’
- Credit Rating Agencies
- North India first data center in Greater Noida
- Two finger tests are banned
- China launches final space station module ‘Mengtian’
1. Ban use of aceclofenac on cattle to save vultures
Subject: Environment
Context: Indian Veterinary Research Institute (IVRI) has demanded a ban on using aceclofenac in cattle after a new study showed that the drug metabolises into diclofenac in water buffaloes — as it does in cows.
Concept:
- The researchers gave the recommended dose of aceclofenac to nine domestic water buffaloes. They collected blood samples at intervals of up to 48 hours.
- And carried out an analysis of aceclofenac and its metabolite diclofenac in their plasma.
- It found that aceclofenac was rapidly converted to diclofenac in the water buffaloes too.
- Diclofenac was present in the plasma within 20 minutes of the treatment.
- The concentration reached its peak between four and eight hours.
- Allowing the use of aceclofenac was a very unfortunate loophole in India’s vulture conservation according to press release of SAVE.
Background
- Aceclofenac is a pro-drug of diclofenac and behaves similarly in domestic water buffalo as it does in domestic cattle, posing the same risk to vultures.
- It is one among the three non-steroidal anti-inflammatory drugs (NSAIDS) drugs—aeclofenac, ketoprofen and nimesulide—were introduced as alternatives to diclofenac, that India banned in 2006 for animal use because it caused widespread vulture deaths.
- However, India’s vulture conservation action plan for 2020-25 recommends a ban on the veterinary use of the three drugs.
Diclofenac
- Diclofenac, a drug used to treat cattle, was linked to kidney failure in vultures and a decline in the bird’s population.
- Though the drug was banned in 2006, it is reportedly still available for use.
- Diclofenac, that is potentially toxic to vultures being used by vets for treating cattle. The drugs make their way into the vulture’s system as they feed on carcasses.
- Three of India’s vulture species of the genus ‘Gyps’— the long-billed (Gyps indicus) and the slender-billed (G. tenuirostris) had declined by 97%, while in the white-rumped (G. bengalensis) declined nearly 99% between 1992 and 2007.
Action Plan for Vulture Conservation 2020-2025
- It proposes to establish Vulture Conservation Breeding Centers in Uttar Pradesh, Tripura, Maharashtra, Karnataka and Tamil Nadu.
- There would also be a conservation breeding programme for the Red Headed vulture and Egyptian vulture, and at least one “Vulture Safe Zone” in every State for the conservation of the remnant populations.
- There would be four rescue centers in different geographical areas:
- Pinjore in north India,
- Bhopal in central India,
- Guwahati in northeast India and
- Hyderabad in south India,
- There will also be regular surveys to track population numbers, the plan envisages.
- Also, the vulture action plan recommends meloxicam over diclofenac and Tolfenamic acid is the other safe option.
SAVE (Saving Asia’s Vultures from Extinction)
- The consortium of like-minded, regional and international organizations, created to oversee and coordinate conservation, campaigning and fundraising activities to help the plight of south Asia’s vultures.
- Objective: To save three critically important species from extinction through a single programme.
- SAVE partners: Bombay Natural History Society, Bird Conservation Nepal, RSPB (UK), National Trust for Nature Conservation (Nepal), International Centre for Birds of Prey (UK) and Zoological Society of London.
Indian Veterinary Research Institute (IVRI)
- It was established in 1889 at Bareilly, UP.
- IVRI is one of the premier research institutions dedicated to livestock research and development of the region.
2. GM mustard field trials to begin from rabi season
Subject: Science and Technology
Context-
- The field trials of the GM mustard hybrid DMH-11, which has been granted approval for ‘environmental release’ by the Genetic Engineering Appraisal Committee (GEAC) recently, will begin from the ongoing rabi season.
More on news-
- The trials, known as performance evaluation trials, will be conducted under the supervision of ICAR Directorate of Rapeseed-Mustard Research (DRMR), Bharatpur, Rajasthan, as per the Indian Council of Agriculture Research (ICAR) rules and guidelines.
- The ICAR-DRMR is responsible for the All India Coordinated Research Projects on Rapeseed-Mustard in the country.
Genetically Modified Mustard (DMH-11)-
- The CGMCP scientists have deployed the barnase-barstar GM technology to create what they say is a robust and viable hybridisation system in mustard.
- This system was used to develop DMH-11 by crossing a popular Indian mustard variety ‘Varuna’ (the barnase line) with an East European ‘Early Heera-2’ mutant (barstar).
- DMH-11 is claimed to have shown an average 28% yield increase over Varuna in contained field trials carried out by the Indian Council of Agricultural Research (ICAR).
Advantages:
- Genetically modified seeds increase the yield of the plant by 28%.
- Reducing India’s import bill.
- Helps in containing the food inflation
Disadvantages:
- Only a few companies are in charge of creating and selling modified seeds. With a near monopoly, this means that there are few choices available to those buying seeds.
- Seeds can’t be replanted i.e. every plantation required buying of new seeds.
- They can decrease species diversity.
- The second concern is over GM mustard threatening or undermining the population of honey bees.
- Mustard flowers are a source of nectar for honey bees and many other pollinator insects.
Need for development of Genetically Modified variety of Mustard-
- The compelling motive here could be India’s spiraling edible oil import bill. The country produces only 8.5-9 million tonnes (mt) of edible oil annually, while importing 14-14.5 mt that entailed a record foreign exchange outgo of $18.99 billion in the fiscal year ended March 31, 2022.
About Mustard crop-
- One of the most significant and well-known winter oilseed crop in India is mustard.
- It is primarily grown in India’s northern plains, while there are some cultivated areas in the country’s eastern region as well.
- It is a member of the crucifer family, which includes several cultivated related species.
- Toria, Yellow Sarson, Brown Sarson, Gobhi Sarsonor Canola, and Black Mustard or Banarasi Rai are among the additional crops included in the “Rapeseed & Mustard” group.
- The little brown or yellow seeds have an oil content of up to 45%.
- The cake that has been de-oiled is fed to animals.
Climatic conditions required for mustard-
- Subtropical climates are ideal for growing mustard.
- Since mustard thrives in a dry, chilly climate, it is typically grown during the Rabi season.
- Temperature range- 10 °C to 25 °C.
- Annual rainfall ranging from 625 to 1000 mm.
- This crop needs a clear sky and no frost because it cannot survive frost.
- The oil content of seeds can be increased by a number of conditions, including cold temperatures, sunlight, and adequate moisture.
- Soil- Alluvial Loamy soil is optimal for mustard
Top 10 Mustard producing countries-
- Nepal, Canada, Russia, Myanmar, Ukraine, United States of America, China, Kazakhstan, France, Czech Republic..
Top 10 Mustard producing states in India-
- Rajasthan, Haryana, Madhya Pradesh, Uttar Pradesh, West Bengal, Gujarat, Jharkhand, Assam, Bihar, Punjab.
3. How suspension bridges work, and what could have happened in Gujarat’s Morbi
Subject: Science and Technology
Context:
How suspension bridges work, and what could have happened in Gujarat’s Morbi
- The bridge that collapsed in Gujarat’s Morbi on Sunday killing at least 134 people, was a suspension bridge — a type in which the deck is hung below suspension cables on vertical suspenders.
About the Morbi Bridge-
- Also known as JhultoPul was a 230-metre-long (750 ft), 1.25-metre-wide (4.1 ft) pedestrian suspension bridge over the Machchhu River in Gujrat,, built during British rule in India in the 19th century.
- It was inaugurated on 20 February 1879.
- The bridge is owned by Morbi municipality, which had signed a contract with a trust owned by private company Oreva— which makes digital products ranging from Ajanta clocks to battery-operated bikes — for maintenance and operations.
- Machchhu River is a river in Gujarat, India, with its origin in the Madla hills.
- Its basin has a maximum length of 130 km (81 mi).
- The total catchment area of the basin is 2,515 km2 (971 sq mi).
Structure of the Suspension bridges-
- The basic structural components of a suspension bridge system include stiffening girders, two or more main suspension cables, and towers and anchorages for cables at either end of the bridge.
- The main cables are suspended between the towers and are connected to the anchorage or the bridge itself.
- The vertical suspenders carry the weight of the deck and the commuter load on it.
- The design ensures that the load on the suspension cables is transferred to the towers at the two ends, which transfer them further by vertical compression to the ground by way of the anchorage cables.
- All of this balancing has to happen within the permissible weight restrictions for the bridge, given that the deck is hanging in the air, supported by the two sets of cables.
- Given that the most important load-bearing members are the main suspension cables, the entire cross-section of the main cable is the mainstay of carrying the load and ensuring that buckling does not happen.
- The buckling is subject to two preconditions: there must be no overloading and no excessive swaying.
- While beam bridges are among the simplest and oldest bridges, the reason for the enduring design of the suspension bridge is that the supporting cables running horizontally between the two far-flung anchorages provide the counterweight and effectively pass on the entire tensional force to the anchorages.
- As a result, suspension bridges can easily cross distances of well over 2,000 metres, beyond the scope of other bridge designs.
- The Morbi bridge was on the smaller side in terms of span and was pedestrian-only.
Morbi bridge collapse: What could have happened-
- The weight limit of this 19th-century bridge is not known, purported video footage from before the incident seems to suggest the bridge was swaying, possibly because of the large crowd on it.
- The sudden collapse, as seen in the videos, suggests that most or all the suspension cables were weak or corroded.
- This is possible considering that this was a very old bridge.
- Visuals from the site appear to suggest that the two towers were unaffected.
- What seems to have given way are the connections securing the vertical cables with the deck, especially on one end of the bridge.
Robustness of these bridges-
- The core design of a bridge determines how it distributes the internal forces of tension, compression, torsion, bending, and sheer.
- Suspension bridges are among the most robust structures, starting from the earliest ones made of twisted grass.
- The Golden Gate Bridge and Brooklyn Bridge in the US are examples of suspension bridges.
- India’s longest single-lane motorable suspension bridge — the 725-metre Dobra-Chanti suspension bridge built over the Tehri lake — was inaugurated in November 2020.
- Besides the suspension, bridges can be arch bridges, beam bridges, cantilever bridges, truss bridges and tied-arch bridges.
4. Yamuna frothing: What causes froth in the river and why is it dangerous
Subject : Environment
Context-
- Froth in Yamuna: A layer of froth seen was floating over parts of the Yamuna river near Kalindi Kunj.
Location of frothing in yamuna-
- The frothing is seen only near Kalindi Kunj, downstream of the Okhla barrage
- It would have been seen across the entire stretch of the river, after the Wazirabad barrage, since drains begin emptying into the river from there.
Frothing and its causes-
- Froth is a mass of small bubbles in liquid caused by agitation, fermentation, or salivating.
- The froth is the sign of a polluted river.
- According to the experts, the release of untreated or poorly treated effluents could lead to frothing.
- Sewage network and industrial waste also leads to toxic frothing.
- Phosphates present in the river cause froth.
- The turbulence at the barrage near Okhla also forms foam from the phosphates.
- Also, organic matter from decomposing vegetation and the presence of filamentous bacteria cause foam.
- Pollutants from sugar and paper industries in U.P. that travel through Hindon canal.
Constituents-
- Surfactantsand phosphates found in detergent in households and industrial laundry forms 1% of froth, and remaining 99% is air and water.
How can froth formation be stopped-
- Rid okhla pondage of water hyacinth.
- Detergents used must be biodegradable.
- U.P., Haryana and Delhi must improve their sewage treatment plants.
- Industrial pollution must be stopped
- Increasing the flow of river.
Steps taken to reduce/remove frothing-
- The Yamuna Monitoring Committee had asked the Delhi Pollution Control Committee (DPCC) and the Central Pollution Control Board (CPCB) to inspect and submit reports on this matter.
- The report submitted by the CPCB suggests that the foam formation takes place at two locations–downstream of the ITO and Okhla barrages.
- The water that falls after discharge from the Okhla barrage stirs the foaming agents present in the water.
- In June this year, the DPCC banned the sale, storage and transportation of soaps and detergents not meeting the quality standards set by the Bureau of Indian Standards (BIS).
Delhi govt deploys boats to remove froth-
- The Delhi government deployed 15 boats to remove the froth with the help of ropes.
- The Delhi Pollution Control Committee (DPCC) is said to conceive the plan and implement it with the help of the Irrigation Flood Control Department and Revenue Department.
Possible consequences-
- According to some environmentalists, the chemical used to prevent frothing can cause skin diseases, eye irritation and can pollute the water in the long run.
- Long term exposure can also cause Neurological issues and hormonal disbalance.
Yamuna river-
- Source: The river Yamuna, a major tributary of river Ganges, originates from the Yamunotri glacier near Bandarpoonch peaks in the Mussoorie range of the lower Himalayas at an elevation of about 6387 meters above mean sea level in Uttarkashi district of Uttarakhand.
- Basin: It meets the Ganges at the Sangam (where Kumbh mela is held) in Prayagraj, Uttar Pradesh after flowing through Uttarakhand, Himachal Pradesh, Haryana and Delhi.
- Length: 1376 km
- Important Dam: Lakhwar-Vyasi Dam (Uttarakhand), Tajewala Barrage Dam (Haryana) etc.
- Important Tributaries: Chambal, Sindh, Betwa and Ken.
Subject: Economy
Context:
Rise in incremental spending–Govt stares at a steeper fiscal challenge.
Challenges in meeting the fiscal deficit target-fiscal deficit target of 6.4 per cent of the GDP for 2022-23.
- Additional expenditure sources:
- Rozgar Mela — a recruitment drive for 10 lakh personnel across 38 ministries and departments.
- Increase in the allocations for security and administrative preparations for the G20 summit.
- Higher subsidies for food, fuel and fertilisers –on account of inflated subsidies bill and extension to the free foodgrains scheme.
- Reduced space to cut spending by various ministries- due to higher transport costs due to high fuel prices.
- Other Concerns:
- Chances of another aggressive rate hike by the Federal Reserve- cause capital outflows and the twin deficit challenge.
Positives- Fiscal target can be achieved?
- Higher tax revenues.
- GDP in nominal terms due to high inflation–Reduce fiscal deficit to GDP ratio.
Concept:
- Twin Deficit Problem: Current Account Deficit and Fiscal Deficit (also known as “budget deficit” is a situation when a nation’s expenditure exceeds its revenues) are together known as twin deficits and both often reinforce each other, i.e. a high fiscal deficit leads to higher CAD and vice versa.
- The fiscal deficit is the difference between the government’s total expenditure and its total receipts (excluding borrowing).
- Fiscal deficit in layman’s terms corresponds to the borrowings and liabilities of the government.
- As per the technical definition, Fiscal Deficit = Budgetary Deficit + Borrowings and Other Liabilities of the government.
- Deficit differs from debt, which is an accumulation of yearly deficits. The elements of the fiscal deficit are revenue deficit and capital expenditure.
- Revenue deficit is the difference between the government’s revenue expenditure and total revenue receipts.
- The current account deficit is a measurement of a country’s trade where the value of the goods and services it imports exceeds the value of the products it exports.
- Current Account is the sum of the balance of trade (exports minus imports of goods and services), net factor income (such as interest and dividends) and net transfer payments (such as foreign aid).
How the two deficits are related–the twin deficit hypothesis:
In macroeconomics, the twin deficits hypothesis or the twin deficits phenomenon is the observation that, theoretically, there is a strong causal link between a nation’s government budget balance and its current account balance.
Explanation-
- Y=C+I+G+(X-M)
- This equation represents GDP because all the production in an economy (the left hand side of the equation) is used as consumption (C), investment (I), government spending (G), and goods that are exported in excess of imports (NX).
- Another equation defining GDP —Y=C+S+T (Y-C-T=S )
- National income is also equal to output, and all individual income either goes to pay for consumption (C), to pay taxes (T), or is saved (S).
- Form first and second equation we get–S=G-T+NX+I or (S-I)+(T-G)=(NX)–shows the twin deficit relation
- (T-G) is negative, we have a budget deficit—If the budget deficit increases, and saving remains the same, then this last equation implies that either investment (I) must fall (see crowding out), or net exports (NX) must fall, causing a trade deficit. Hence, a budget deficit can also lead to a trade deficit, causing a twin deficit.
Subject: Economy
Context:
EPFO relaxes withdrawal norms for EPS-95 subscribers.
Details–various changes approved
- It allowed withdrawal of accumulations in Employees’ Pension Scheme 1995 for those subscribers who have only less than six months of service left.
- Earlier, subscribers who have less than six months of service left were allowed to withdraw the accumulations in their employees’ provident fund account only.
- A redemption policy for its investments in Exchange traded fund (ETF) units .
- The Audited Annual Account, in respect of the EPF Scheme 1952, EPS Scheme 1995 and Employees’ Deposit Linked Insurance (EDLI) Scheme 1976.
- 11 proposals for surrender/cancellation of exemption from EPF Scheme.
- Information Security Policy of the EPFO.
Concept:
Employees’ Provident Funds (EPF) scheme
- EPF is a mandatory savings scheme under the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952.
- It is managed under the aegis of Employees’ Provident Fund Organisation (EPFO).
- It covers every establishment in which 20 or more persons are employed (and certain other establishments which may be notified by the Central Government even if they employ less than 20 persons each).
- EPF scheme is mandatory for employees who draw a basic wage of Rs. 15,000 per month.
- The employee has to pay a certain contribution towards the provident fund and the same amount is paid by the employer on a monthly basis.
- At the end of retirement or during the service (under some circumstances), the employee gets the lump sum amount including the interest on PF contributed which gets accrued
- The Central Board of Trustee, which is a key decision making body for EPFO, takes a call on the interest rates that have to be provided on the provident fund deposits, every year.
- EPFO provides a rate of interest only after it is ratified by the government through the finance ministry.
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.
- 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.
- The EPFO’s apex decision making-body Central Board of Trustees (CBT), headed by Union Labour Minister
Employees Pension Scheme (EPS-1995):
- 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.
- Both employer and employee contribute 12% of employee’s monthly salary (basic wages plus dearness allowance) to the Employees’ Provident Fund (EPF) scheme.
- Of the employer’s share of 12 %, 8.33 % is diverted towards the EPS.
- Central Govt. also contributes 1.16% of employees’ monthly salary.
Subject: Economy
Context:
The Reserve Bank of India (RBI) announced that the first pilot in the Digital Rupee, or e-rupee, will commence in government securities from November 1, 2022.
Details:
It will make the inter-bank market more efficient–Settlement in central bank money would reduce transaction costs by preventing the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk.
Concept:
Central Bank Digital Currency/e-Rupee:
- RBI defines the Central Bank Digital Currency as the digital form of currency notes issued by a central bank.
- It is a sovereign or entirely independent currency issued by the central bank (in this case, RBI), in accordance with the country’s monetary policy.
- Since it is issued by the central bank, it will appear as a ‘liability’(or debt owed) on the bank’s balance sheet.
- CBDC will be considered as a medium of payment and legal tender by all three parties – citizens, government bodies, and enterprises.
- Being government-recognised, it can be freely converted to any commercial bank’s money or notes. So, individuals can own CBDC without opening a separate account.
- Further it can be exchanged with fiat currency (paper money) in a 1:1 ratio.
How does CBDC differ from existing digital money?
A common form of digital money exists in bank accounts and is recorded as book entries on ledgers of commercial banks. CBDC, another form of digital currency, will directly be on the ledger of RBI.
Forms of CBDC Under Consideration
Digital currency can either be token-based or account-based.
- The token-based will be similar to bank notes i.e a person holding tokens at any given point would presumably be owing the digital currency. The individual token owner will have to verify the legitimacy of his owning the tokens. Such a digital currency will be referred to as CBDC-R.
- Account-based will be similar to owning a bank account i.e., RBI expected to hold an account of all transactions and balances of all CBDC holders. The central bank would also have to maintain a record of ownership of monetary balances. In the case of an account -holder, an intermediary will be responsible for verifying the identity of the account-holder. This digital currency will be called CBDC-W.
Utilization of CBDC-R and CBDC-W
- TheR in CBDC-R stands for ‘retail’ or ‘general purpose’- it will potentially be utilised by the private sector, non-financial businesses and consumers. It will be an electronic form of cash, predominantly meant for retail-related transactions.
- The W in CBDC stands for ‘wholesale’, utilised for interbank and other wholesale-related transactions. Its use is likely to be restricted to specific financial institutions.
Technology to be used:
The two technologies under consideration are – and
There are two models for issuance and management of CBDCs under the RBI’s consideration:
- Direct model (single tier model) -In the direct model, the central bank will be responsible for managing all aspects of the digital rupee system such as issuance, account-keeping and transaction verification.it is also called the Centrally-controlled databases
- Indirect model (two-tier model).-In this model, the central bank will issue CBDC to consumers indirectly through intermediaries and any claim by consumers will be managed by the intermediary. It is also called Distributed Ledger Technology.
In India, the key motivations to introduce CBDC have been stated as follows –
- Reduction in cost associated with physical cash management
- To further the cause of digitisation to achieve a less cash economy.
- Supporting competition, efficiency and innovation in payments . To explore the use of CBDC for improvement in cross -borderransactions
- Support financial inclusion
- Safeguard the trust of the common man in the national currency vis-à-vis proliferation of crypto assets
Subject: Science and Technology
Context:
WTO’s TRIPS council to meet on IP waiver extension for Covid diagnostics and therapeutics this week to reach a decision on the crucial issue by the deadline of December 17.
Details:
- At the 12th WTO Ministerial Conference a temporary IP waiver for Covid-19 vaccines extended under specific conditions.
- However, a decision on diagnostics and therapeutics was postponed by six months, till December 17.
Concept:
Present Waiver position:
- It waives only Article 31(f) of the TRIPS Agreement–
- 31(f) of the TRIPS Agreement states the bulk of production should not be exported. This provision limits the supply of vaccines under compulsory licence to countries which can’t produce them.
- Thus, the waiver allows only the export of vaccines under a compulsory licence.
- A compulsory licence is granted to allow a third party to produce patent-protected products including medicines.
- Example- Globally, vaccine production is concentrated in a few countries, including India.
- This means Indian companies may use a compulsory licence under the Indian Patents Act to export a part of the production, but not the bulk of it. The waiver offers no advantage to Indian vaccine producers.
- Under Section 92 of the 1970 Indian Patents Act, the central government has the power to allow compulsory licenses to be issued at any time in case of a national emergency or circumstances of extreme urgency.
Trade-Related Aspects of Intellectual Property Rights (TRIPS) agreement:
- The TRIPS agreement was negotiated in 1995 at the WTO, it requires all its signatory countries to enact domestic law.
- The TRIPS Agreement is also described as a “Berne and Paris-plus” Agreement.
- The TRIPS Council is responsible for administering and monitoring the operation of the TRIPS Agreement.
- It guarantees minimum standards of IP protection.
- TRIPS establishes minimum standards for the availability, scope, and use of seven forms of intellectual property namely, trademarks, copyrights, geographical indications, patents, industrial designs, layout designs for integrated circuits, and undisclosed information or trade secrets.
- It applies basic international trade principles regarding intellectual property to member states
- TRIPS Agreement lays down the permissible exceptions and limitations for balancing the interests of intellectual property with the interests of public health and economic development.
- In 2001, the WTO signed the Doha Declaration, which clarified that in a public health emergency, governments could compel companies to license their patents to manufacturers, even if they did not think the offered price was acceptable.
- This provision, commonly referred to as “compulsory licensing”, was already built into the TRIPS Agreement and the Doha declaration only clarified its usage.
Intellectual property rights are customarily divided into two main areas: Copyright and rights related to copyright: The rights of authors of literary and artistic works (such as books and other writings, musical compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a minimum period of 50 years after the death of the author. It also protects the rights of performers (e.g. actors, singers and musicians), producers of phonograms (sound recordings) and broadcasting organizations. Industrial property: It involves the protection of distinctive signs, in particular trademarks and geographical indications. Other types of industrial property are protected primarily to stimulate innovation, design and the creation of technology. In this category fall inventions (protected by patents), industrial designs and trade secrets. Article 8 allows members to adopt measures necessary to promote the public interest, including to protect public health – so long as those measures are consistent with the TRIPS Agreement. The flexibilities identified in the Doha Declaration include “the right to grant compulsory licences”. A compulsory license is issued by a government authority or a court to make certain use of a patented invention without the consent of the patent holder. Article 31bis of the TRIPS Agreement gives full legal effect to this system and allows low cost generic medicines to be produced and exported under a compulsory licence exclusively for the purpose of serving the needs of countries that cannot manufacture those products themselves. |
9. Fifty Years of Indian Banking Through the Lens of Basic Statistical Returns –‘BSR@50’
Subject: Economy
Context:
In order to reduce the reporting burden on banks, they will soon be required to submit only two quarterly BSR (Basic Statistical Return) reports on credit and deposits effective March 2023, according to the Reserve Bank of India Deputy Governor.
Details:
- This will leave us with only two BSRs, viz., BSR 1 on credit and BSR 2 on deposits, both of quarterly frequency.
Basic Statistical Return:
- Given the need for more determined effort at systematizing the reporting of comprehensive banking data with a minimum time lag, the RBI constituted the Committee on Banking Statistics in April 1972 to look into various aspects of statistical reporting of data by banks and suggest appropriate steps.
- The BSR system is a sound and comprehensive reporting system, generating useful statistics, and has supported the post-nationalisation expansion of the banking system.
- BSR Code–Basic Statistical Return Code (BSR Code) is a seven-digit code given by the Reserve Bank of India to all the registered banks in India. The first three digits out of the seven represent the bank whereas the remaining four digits represent the branch.
- BSR Codes are used mainly when filing Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) returns.This code is used to maintain records of the online payments and alerts the Income Tax department about the payment through banks.
- Classification of Codes
- BSR 1-This is applicable to the half-yearly Returns on Advances from all branches of the bank on the last Friday of June and December. It is in two parts; Part I is for accounts with limits over Rs.10,000 and Part II is for accounts with limits below Rs.10,000.
- BSR 2-This is applicable to the half-yearly Return Deposits to all bank branches on the last Friday of June and December.
- BSR 3-This is applicable to the monthly Return Advances against the Security of Selected Sensitive Commodities from Head Offices on last Friday of every month.
- BSR 4-This is applicable once in every two months for the Return on Ownership of Bank Deposits from all branches on the last Friday of March.
- BSR 5-This is applicable to the annual Return on Bank Investments from the Head Office on the last day of March.
- BSR 6 –This is applicable for the Quinquennial Survey on Debits to Deposits Accounts from April to March.
- BSR 7-This is done quarterly and is applicable for the Survey on Aggregate Deposits and Gross Bank Credit by head offices of the bank on the last Friday of June, September, and December, and on March 31.
Uses of BSR Codes
There are three important merits of BSR Codes and they are as follows.
- BSR Codes assists the international tax authorities to track the payment made by an individual to a foreign country.
- BSR Codes enables the senior citizens to receive pensions earlier and also gathers all details of a bank branch.
- BSR codes are used by the Income Tax Department to receive and gather information and record taxes that are paid through the banks and upload the challan details.
Other terms:
What is a Challan Identification Number?
- A serial number given by the Reserve Bank of India will be applied for all challans which will be tendered in cash, transfer cheques and clearing cheques as well.
- The Challan Identification Number is a part of the BSR code given by the Reserve Bank of India to all registered banks in the country. The CIN is a 20-digit unique code which is given on the counterfoil of the taxpayer. The BSR code comes with the CIN number and is used as a unique combination along with the challan number and the payment deposited date.
What is the difference between IFSC code and BSR code?
The only difference between the IFSC code and the BSR code is that the IFSC code is an 11-digit code whereas a BSR code consists of only 7 digits. However, their major purpose is the same as giving a unique identity to the bank.
Subject: Economy
Context:
Capital markets regulator Sebi gave fresh guidelines to standardise the usage of rating scales
used by Credit Rating Agencies (CRAs).
Guidelines:
- The regulator has specified standard descriptors for rating watch and rating outlook.
- ‘Rating outlook’ indicates CRA’s view on the expected direction of the rating movement in the near to medium term.
- A stable, positive and negative are the standard descriptors to be used
- ‘Rating watch’ indicates a CRA’s view on the expected direction of the rating movement in the short term.
- Rating watch with positive implications, rating watch with developing implications, rating watch with negative implications are the three standard descriptors to be used.
- Rating symbols should have CRA’s first name as prefix.
- CRA will have to assign a rating outlook and disclose the same in the press release.
Credit Rating?
- A credit rating is an assessment of the creditworthiness of a borrower in general terms or with respect to a particular debt or financial obligation.
- A credit rating can be assigned to any entity that seeks to borrow money — an individual, corporation, state or provincial authority, or sovereign government.
What are Credit Rating Agencies?
- A credit rating agency (CRA) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default.
- There are six credit rating agencies registered under SEBI namely, CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings.
- CRAs were set up to provide independent evidence and research-based opinion on the ability and willingness of the issuer to meet debt service obligations, quintessentially attaching a probability of default to a specific instrument.
- Evaluating the creditworthiness of an instrument comprises both qualitative and quantitative assessments, making credit rating far from a straightforward mathematical calculation.
Ratings:
- ‘AAA’ rating symbols–are considered to have the highest degree of safety regarding timely servicing of debt obligations. Debt exposures to such issuers carry lowest credit risk.
- ‘AA’ rating symbols -are understood to have a high degree of safety with regard to timely servicing of debt obligations. Debt exposures to such issuers carry very low to low credit risk.
- ‘A’ rating symbols– adequate degree of safety with regard to timely servicing of debt obligations
- BBB rating symbols- are considered to have a moderate degree of safety regarding timely servicing of debt obligations. Debt exposures to such issuers carry moderate credit risk.
- BB, B and C ratings- are considered to have ‘moderate’, ‘high’, ‘very high’ risk of default, respectively pertaining to timely servicing of debt obligations and issuers with D rating are in default or are expected to be in default soon.
11. North India first data center in Greater Noida
Subject: Science and Technology
Context:
- Recently North India’s Firstdata centre ‘Yotta D1’ in Greater Noida was inaugurated by UP CM Adityanath.
- What is data center:
- It is a dedicated secure space within a building/centralized location where computing and networking equipment is concentrated for the purpose of collecting, storing, processing, distributing or allowing access to large amounts of data.
- What is data center park:
- These are specialized secure Data Zone, strategically located with the most conducive non-IT and IT infrastructure, and regulatory environment for housing a mix of small scale/large scale clusters of Data Centres to serve the high needs of compute, storage, networking and provision of a wide range of data-related services.
- More about ‘Yotta Data Center’:
- Yotta Data Center Park at Greater Noida will have six Data center buildings with a total capacity of 30000 racks and IT power capacity of 250 megawatts.
- The digital infrastructure will be supported by renewable power and three redundant fiber paths for enhanced connectivity.
- This will be North India’s first hyperscale data center park.
- Yotta D1 features Internet peering exchanges and direct fibre connectivity to and from global cloud operators, making it extremely useful for global connectivity.
12. Two finger tests are banned
Subject :Polity
Context:
- Recently, the Supreme Court has declared that any person conducting the invasive ‘two-finger’ or vaginal test on rape or sexual assault survivors will be found guilty of misconduct.
- A Bench of Justices D Y Chandrachud and Hima Kohli made this comments in its order restoring the conviction and sentencing of a man for the rape and murder of a minor girl in Jharkhand in November 2004.
What is two finger test:
- The ‘two-finger test’ is a regressive procedure that involves the insertion of two fingers into a person’s vagina to gauge the laxity of vaginal muscles, thereby determining her ‘virginity’.
- It includes an inspection of the hymen.The hymen is inspected as it can be torn only if the woman has had any sexual intercourse.
What are the norms for medical examinations of Rape Victims:
- In terms of Section 53A in the Indian Evidence Act, the evidence of a victim’s character or her previous sexual experience with any personshall not be relevant to the issue of consent or the quality of consent in the prosecution of sexual offenses.
Is the two-finger test scientifically accepted:
- According to medical experts, science has proved that the hymen is not a reliable source of proving vaginal penetration.
- The hymen, which is a thin membrane in the vagina, can rupture not just during sexual activity but also during day-to-day work or any physical activity, including playing sports.
What is Supreme Court’s take on the issue:
- In May 2013, the Supreme Court banned the two-finger test on rape victims on the grounds that it violated their right to privacy.
- The court had asked the government to provide better medical procedures in order to confirm sexual assault.
- The test is medically unnecessary, oftentimes painful, humiliating and a traumatic practice that must end.
What did the Verma Committee say on the two-finger test:
- The committee had recommended tougher laws for such cases and ban of the two-finger test as this test has no bearing on a case of sexual assault.
- Moreover, on the basis of this test observations such as ‘habituated to sexual intercourse’ should not be made and this is forbidden by law.
13. China launches final space station module ‘Mengtian’
Subject: Science and Technology
Context:
- Recently China launched its final space station module ‘Mengtian’ through the Long March-5BY4 carrier rocket.
What is “Mengtian” module:
- The name “Mengtian” means “dreaming of the heavens”.
- It is the third and final module Tiangong space station
- The module is expected to be operational for 10 years or more.
- It is the second of the two modules that will host science labs required for conducting research.
- Mengtian weighs in at about 23 tons, is 17.9 meters long and has a diameter of 4.2 meters.
- This module will be docked on the core module Tianhe and will complete the T-shaped structure of the space station along with the other module Wentian.
- Mengtian will have workstations supporting experiments related to microgravity scientific studies and frontier scientific projects focusing on fluid physics, combustion and materials science and space technologies.
- It will provide a pressurized environment required for conducting scientific experiments in freefall or zero gravity, which could not be undertaken on Earth for more than a few minutes.
- It will also support experiments on exposure to the space environment, cosmic rays, vacuum and solar winds.
What is the Tiangong Space Station:
- The Tiangong space station is a Chinese space station built in low Earth orbit between 340 and 450 kilometers above the earth.
- It is part of China Manned Space Program and is the country’s first long-term space station.
- The three modules of the Tiangong Space Station are
- The Tianhe means “Harmony of the Heavens” is the core module.
- Wentian means “Quest for the Heavens” is a laboratory cabin module.
- Mengtian means “Dreaming of the Heavens” is a laboratory module.
- With the fully functioning of the Space station China will become only the third country in history to have put both astronauts into space and to build a space station, after Russia and the US.
- It is one-fifth the mass of the International Space Station