Daily Prelims Notes 18 February 2023

February 18, 2023
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Daily Prelims Notes

18 February 2023

Table Of Contents

1. Doomsday Glacier

Subject : Environment

Section: Climate change

Context: So-called Doomsday Glacier is ‘in trouble,’ scientists say after finding surprising formations under ice shelf.

More on the News:

In two studies, published in the journal Nature, scientists revealed while the pace of melting underneath much of the ice shelf is slower than previously thought, deep cracks and “staircase” formations in the ice are melting much faster.
Particularly rapid melting happens at the point where the glacier meets the seafloor, which has retreated nearly nine miles (14 kilometers) since the late 1990s, exposing a larger slice of ice to relatively warm ocean water.
The complete collapse of the Thwaites itself could lead to sea level rise of more than two feet (70 centimeters), which would be enough to devastate coastal communities around the world. But the Thwaites is also acting like a natural dam to the surrounding ice in West Antarctica.
The scientists were also surprised by a second finding. They discovered an underwater glacial landscape much more complex than expected, dominated by strange staircaselike terraces and crevasses – big cracks going all the way through the ice shelf.
Warm, salty water was able to funnel through and widen cracks and crevasses, contributing to instabilities in the glacier.
Melting along the sloped ice of the cracks and terraces may become the primary trigger for ice shelf collapse.

Doomsday Glacier

Thwaites Glacier, nicknamed the Doomsday Glacier, is an unusually broad and vast Antarctic glacier.
It flows into Pine Island Bay, part of the Amundsen Sea, east of Mount Murphy, on the Walgreen Coast of Marie Byrd Land.
Thwaites Glacier is roughly the size of Florida and is located in West Antarctica. Part of what holds it in place is an ice shelf that juts out onto the surface of the ocean. The shelf acts like a cork, holding the glacier back on the land and providing an important defense against sea level rise.
Every year it sheds billions of tons of ice into the ocean, contributing about 4% of annual sea level rise.

2. Pangolins

Subject : Environment

Section: Species in News

Context: Over 1,200 pangolins trafficked in India in 5 years: Report

More on the News:

International non-profit organisation TRAFFIC has reported that 50% of seizures included live pangolins and 40% involved pangolin scales, used as an ingredient in traditional medicine in China and Southeast Asia.
Odisha reported the maximum number of incidents, with 154 pangolins in 74 seizures.
They are poached mainly for international markets in China and southeast Asia for their scales, which are used as an ingredient in traditional medicines. Pangolin meat is also considered a delicacy and consumed for its alleged medicinal properties.
An earlier analysis of illegal pangolin trade in India by TRAFFIC in 2018 reported poaching of nearly 6,000 pangolins between 2009 and 2017.

Pangolins

Pangolins are among the most trafficked wild mammals globally.
India is home to two species: the Indian Pangolin and the Chinese Pangolin.
Indian Pangolin is a large ant-eater covered by 11-13 rows of scales on the back. A terminal scale is also present on the lower side of the tail of the Indian Pangolin, which is absent in the Chinese Pangolin.
Pangolins acts as both predator and prey, feeding on insects and also preyed upon by other animals.
Other than regulating the population of insects, the pangolin is an ‘ecosystem engineer’ that builds burrows that help circulate soil organic matter, increase soil moisture and aeration, and affect plant community succession.
Habitat :
- Indian Pangolin is widely distributed in India, except the arid region, high Himalayas and the North-East. The species is also found in Bangladesh, Pakistan, Nepal and Sri Lanka.
- Chinese Pangolin is found in the Himalayan foothills in Eastern Nepal, Bhutan, Northern India, North-East Bangladesh and through Southern China.
Threats to Pangolins in India:
- Hunting and poaching for local consumptive use (e.g. as a protein source and traditional medicine) and international trade for its meat and scales in East and South East Asian countries, particularly China and Vietnam.
Protection Status
IUCN Red List
- Indian Pangolin: Endangered
- Chinese Pangolin: Critically Endangered
Both these species are listed under Schedule I, Part I of the Wildlife (Protection) Act, 1972.
Both these species are listed under appendix I of the CITES, meaning they are most endangered.

3. The Global Climate Finance Architecture

Subject : Environment

Section : Climate Change

Context: Climate finance remains central to achieving low-carbon, climate resilient development. The global climate finance architecture is complex and always evolving. Funds flow through multilateral channels – both within and outside of the United Nations Framework Convention on Climate Change (UNFCCC) and Paris Agreement financial mechanisms and increasingly through bilateral, as well as through regional and national climate change channels and funds.

Multilateral channels for climate finance

Multilateral channels for climate finance are institutions and mechanisms that have been established to mobilize and distribute financial resources for climate change projects and programs in developing countries. These institutions operate at the international level and are typically funded by contributions from donor countries.
Global Environment Facility (GEF)
- GEF was established on the eve of the 1992 Rio Earth Summit to help tackle our planet’s most pressing environmental problems.
- GEF is an operating entity of the financial mechanism of the UNFCCC, serving the same function for the Paris Agreement, with a long track record in environmental funding.
- It is a financial mechanism for five major international environmental Conventions:
  - the Minamata Convention on Mercury,
  - the Stockholm Convention on Persistent Organic Pollutants (POPs),
  - the United Nations Convention on Biological Diversity (UNCBD),
  - the United Nations Convention to Combat Desertification (UNCCD)
  - the United Nations Framework Convention on Climate Change (UNFCCC)
- As of December 2021, through the fourth, fifth, six and seventh Trust Fund, GEF had approved over 880 projects in the focal area of climate change amounting to USD 4.2 billion.
- GEF also administers the Least Developed Countries Fund (LDCF) and the Special Climate Change Fund (SCCF) under the guidance of the UNFCCC COP. These funds support NAPs development and implementation
Adaptation Fund (AF)
- AF has been financed through a 2% levy on the sale of emission credits from the Clean Development Mechanism (CDM) of the Kyoto Protocol.
- Now mandated to serve the Paris Agreement, a similar automated funding source from the new carbon market mechanism developed under the Paris Agreement is being set up.
- Following agreement at COP26 in Glasgow, the AF will receive 5% of the share of proceeds from the sale of emissions credits under the new CDM-replacement mechanism (UNFCCC, 2021).
- However, in times of low carbon prices, the AF is increasingly reliant on developed-country grant contributions to stay afloat.
- Operational since 2009, total financial inputs amount to USD 1,160 million2, with total cash transfers to projects of USD 522 million.
- The AF pioneered direct access to climate finance for developing countries through accredited National Implementing Entities that are able to meet agreed fiduciary as well as environmental, social and gender standards, as opposed to working solely through UN agencies or multilateral development banks (MDBs) as multilateral implementing agencies.
Green Climate Fund (GCF)
- GCF of the UNFCCC was agreed at the Durban COP and became fully operational with its first projects approved at the end of 2015.
- Like the GEF, it serves as an operating entity of the financial mechanism of both the UNFCCC and the Paris Agreement and receives guidance by the COP. It is expected to become the primary channel through which international public climate finance will flow over time and is intended to fund the paradigm shift towards climate-resilient and low-carbon development in developing countries with a country-driven approach, and a commitment to a 50:50 balanced allocation of finance to adaptation and mitigation.
- The initial resource mobilisation process for the GCF raised USD 10.3 billion. However, the failure by the United States to fulfil USD 2 billion of its USD 3 billion contribution agreement, in addition to exchange-rate fluctuations, means that only USD 7.1 billion were ultimately available.
Standing Committee on Finance
- At COP16, the Standing Committee on Finance was established under the UNFCCC to assist the COP in meeting the objectives of the Financial Mechanism of the Convention. The Standing Committee on Finance has been tasked with, among other things, preparing a biennial assessment of climate finance flows, the fourth of which was published in 2021 and details the finance flows from 2017–2018.
Climate Investment Funds (CIFs)
- It is established in 2008 are administered by the World Bank, but operate in partnership with regional development banks including the African Development Bank (AfDB), the Asian Development Bank (ADB), the European Bank for Reconstruction and Development (EBRD) and the Inter-American Development Bank (IDB).
- The CIFs finance programmatic interventions in selected developing countries, with the objective of improving understanding of how public finance is best deployed at scale to assist transformation of development trajectories.

Multilateral development banks (MDBs)

Multilateral development banks (MDBs) play a prominent role in delivering multilateral climate finance. Many have incorporated climate change considerations into their core lending and operations, and most MDBs now also administer climate finance initiatives with a regional or thematic scope.
World Bank
- World Bank’s carbon finance unit has established the Forest Carbon Partnership Facility (FCPF) to explore how carbon market revenues could be harnessed to reduce emissions from deforestation and forest degradation, forest conservation, sustainable forest management and the enhancement of forest carbon stocks (REDD+).
- It also manages the Partnership for Market Readiness (PMR), aimed at helping developing countries establish market-based mechanisms to respond to climate change
- BioCarbon Fund, which is a public-private partnership that mobilises finance for sequestration or conservation of carbon in the land use sector.
African Development Bank
- African Development Bank also finances enhanced climate finance readiness in African countries through the German-funded Africa Climate Change Fund (ACCF), whose first projects were approved in 2015.
- The African Development Bank is also the Trustee for the Africa Renewable Energy Initiative (AREI) and will house the AREI Trust Fund with expected USD 10 billion in resources.

Bilateral channels for climate finance

A significant share of public climate finance is spent bilaterally and administered largely through existing development agencies
Germany’s Internationale Klimaschutzinitiative (IKI, international climate initiative) has provided over EUR 4.5 billion for more than 750 mitigation, adaptation, and REDD+ projects since its establishment in 2008. The initiative is innovatively funded partly through the sale of national tradable emission certificates, providing finance that is largely additional to existing development finance commitments.
United Kingdom has committed GBP 5.8 billion to its International Climate Finance (ICF) from 2016 through to 2021. In 2019, it announced a doubling of its investments to help developing countries to combat climate change in the period 2021–2026 to GBP 11.6 billion.
Norway’s International Climate and Forest Initiative (NICFI) has pledged USD 350 million each year since 2008 through bilateral partnerships, multilateral channels and civil society. Sizeable pledges have been made for REDD+ activities in Brazil, Indonesia, Tanzania, and Guyana.

Regional and national channels and climate change funds

Caribbean Catastrophic Risk Insurance Facility (CCRIF) was established in 2007 through support of the World Bank and other development partners but is now also funded by premiums from developing countries. A 22 member-country risk pool, the CCRIF offers parametric insurance.
Amazon fund
- The Amazon Fund is a financial mechanism created by the Brazilian government in 2008 to provide financial support for projects that help to prevent, monitor and combat deforestation and promote the sustainable use of forests in the Amazon biome.
- The Amazon Fund is managed by the Brazilian Development Bank (BNDES) in partnership with Brazil’s Ministry of the Environment and receives financial contributions from international donors
- The Amazon Fund has received financial contributions from a number of countries, including Norway, Germany, and the United Kingdom.
- As of 2021, the fund has received approximately $1.3 billion in donations, which has been used to support a range of projects, including the creation of protected areas, the strengthening of environmental monitoring and law enforcement, and the promotion of sustainable agriculture and forestry practices.

4. EC recognizes Shinde faction as real Shiv Sena

Subject: Polity

Section: Elections

Concept:

The Election Commission decided that the Shiv Sena faction led by Maharashtra Chief Minister Eknath Shinde was the real Shiv Sena as opposed to the group led by former CM Uddhav Thackeray.
It said the party name and symbol of ‘Bow and Arrow’ would be retained by the Shinde group.
The EC ruling comes at a time when the Supreme Court is still to decide on the dispute over the powers of the Deputy Speaker to disqualify rebel Shiv Sena MLAs when a notice for his own removal has been given.

Fight for symbol when party splits

When a prominent party splits, a tussle often ensues for its election symbol. This symbol is frequently considered as the embodiment of the identity of the party.
Examples: In October 2021, the ECI had frozen the ‘Bungalow’ election symbol of the Lok Janshakti Party (LJP). The LJP had split in June 2021.
Before that, tussles over the election symbol had been witnessed in 2017 after the Samajwadi Party (Cycle) and the AIADMK (Two leaves) split.

How does the ECI decide who gets the symbol?

It is decided as per the provisions of the Symbols (Reservation and Allotment) Order, 1968. This rule applies to disputes in recognised national and state parties.
Para 15 of the Symbols Order, 1968 empowers EC to decide on the claim of rival factions in case of split.
EC decides on the issue after taking into account all the available facts and circumstances of the case and hearing their representatives.
The decision of the Commission shall be binding on all such rival sections or groups.
For splits in registered but unrecognised parties, the ECI usually advises the warring factions to resolve their differences internally or to approach the court.

Other ways apart from the test of majority

In almost all disputes decided by the EC so far, a clear majority of party delegates/office bearers, MPs and MLAs have supported one of the factions.
Whenever the EC could not test the strength of rival groups based on support within the party organisation (because of disputes regarding the list of office bearers), it fell back on testing the majority only among elected MPs and MLAs.

What happens to the group that doesn’t get the parent party’s symbol?

Before 1997, EC used to recognise the party, not getting the symbol, based on the criteria fixed for recognition of parties under Paras 6 and 7 of the Symbols Order.
e., if the breakaway party had support of sufficient MPs/MLAs as per the criteria, it was recognised by EC as National/State Party.
The EC in 1997 felt that merely having MPs and MLAs is not enough, as the elected representatives had fought and won polls on tickets of their parent (undivided) parties.
The EC introduced a new rule under which the splinter group of the party — other than the group that got the party symbol — had to register itself as a separate party.
These parties could lay claim to national or state party status only on the basis of its performance in state or central elections after registration.

EC decision on this case

EC analysed three tests mentioned in the Sadiq Ali case, 1972
The three tests were:
Test of Aims and Objects of the Party
Test of Party Constitution, and
Test of Majority
EC held that the Test of Party Constitution for determining the present dispute case will be undemocratic
While refusing to apply this test, EC held the 2018 changes to the Shiv Sena party constitution as undemocratic since the part has not submitted an amended copy of its constitution.
EC was of the view that if such test is applied in the present case, it would be catalytic in spreading such practices across parties.
Majority in organisational party structure was inconclusive
The details of organisational structure were not mentioned by any of the faction.
Hence, proving the test of majority in organisational party structure was inconclusive.
Finally, EC used the test of majority in the legislative wing of the party.
Since, the test of majority in organisational party structure was inconclusive, EC had to resort to the test of majority in the legislative wing of the party.
This test showed qualitative superiority to the Shinde faction which has support of 40 out of 67 Sena MLAs & MLC and 13 out of 22 Sena MPs.

5. Feathering in Nepal Plane crash

Subject : Science and technology

Section: Msc

Concept :

A preliminary report by the Aircraft Accident Investigation Commission of Nepal on the crash of a Yeti Airlines ATR 72-500 brought to light that the propellers of the plane were found in an unusual “feathered” position.

What is ‘feathering’?

Sometimes an aeroplane’s engine stops working while it’s flying.
In an aeroplane with a propeller, the pilot can change the angle of the propeller blades so they cut through the air more efficiently. This is called “feathering” the propellers.
Feathering helps the aeroplane glide farther and stay at a safe speed. When pilots have to make an emergency landing, they often use feathering to help them.
If the propellers keep spinning even when the engine is off, it can be dangerous if the aeroplane is flying low, but it can actually help restart the engine if the aeroplane is flying high.

Types of propeller engines

Fixed-pitch propeller: As the name suggests, the angle or pitch at which the propeller blades meet the airflow is fixed. The blade angle or pitch cannot be changed.
Variable-pitch propeller: Both the fixed-pitch and adjustable-pitch propeller types have their limitations. Pilots wanted different propeller pitches for takeoff, climb, cruise, etc. — a small blade pitch is ideal for takeoff, medium pitch for climb and high pitch for cruise. They also wanted propellers whose pitch could be changed from the cockpit during the flight.
Constant-speed propeller: This is a more advanced variable-pitch propeller, in which the blade pitch changes automatically to maintain a constant aircraft speed.

6. Transfer Pricing

Subject : Economy

Section : Fiscal Policy

Concept :

The Income Tax department recently conducted surveys in BBC offices located in Mumbai, Delhi, and in different other cities in the country.
According to the IT Department, the BBC has violated “Transfer Pricing Rules”. Transfer Pricing is a practice where one company charges another (in the same division). The parent company of both companies is the same.

What is transfer pricing?

Transfer pricing is an accounting practice that represents the price that one division in a company charges another division for goods and services provided.
In such transactions, one party transfers to another goods or services, for a price known as transfer price.
This may be arbitrary and dictated, with no relation to cost and added value, diverge from the market forces.
Hence, the expression “transfer pricing” generally refers to prices of transactions between associated enterprises which may take place under conditions differing from those taking place between independent enterprises.

Understanding transfer pricing

Suppose a company A purchases goods for 100 rupees and sells it to its associated company B in another country for 200 rupees, who in turn sells in the open market for 400 rupees.
Had A sold it direct, it would have made a profit of 300 rupees. But by routing it through B, it restricted it to 100 rupees, permitting B to appropriate the balance.
The transaction between A and B is arranged and not governed by market forces. The profit of 200 rupees is, thereby, shifted to the country of B.
The goods is transferred on a price (transfer price) which is arbitrary or dictated (200 hundred rupees), but not on the market price (400 rupees).

What effect does transfer pricing have?

The parent company — or a specific subsidiary — tends to produce insufficient taxable income or excessive loss on a transaction.
Profits accruing to the parent can be increased by setting high transfer prices to siphon profits from subsidiaries domiciled in high-tax countries, and low transfer prices to move profits to subsidiaries located in low-tax jurisdiction.

What is the “arm’s length arrangement” that the BBC has allegedly violated?

Section 92F of the Income Tax Act, 1961 defines arm’s length price as a price which is applied or proposed to be applied in a transaction between persons other than associated enterprises, in uncontrolled conditions.
e., the price a division or subsidiary of a company pays to buy goods or services from another division or subsidiary should be the same as the market rate — as if the two entities were unrelated.
This is the rule the BBC has allegedly violated.

7. Draft Norms on Banks’ Minimum Capital Requirement

Subject : Economy

Section: Monetary Policy

Concept :

The Reserve Bank of India has issued draft guidelines on minimum capital requirements for market risk as a part of the convergence of banking regulations with Basel III standards.
The central bank has sought feedback on the norms by April 15, and has proposed that the final norms will come into effect from April 1, 2024.

Key highlights of the draft guidelines

As per the proposed norms, banks will use the simplified standardised approach to compute risk-weight assets for market risk.
Market risk is defined as the risk of losses in on- and off-balance-sheet positions arising from movements in market prices.
The risks subject to market risk capital requirements include interest rate risk and equity risk for trading book instruments, and foreign exchange risk for trading book and banking book instruments.
The capital requirement arising from the simplified standardised approach is the sum of the capital requirements arising from each of the three risk classes–interest rate risk, equity risk, and forex risk.
Banks have to maintain the minimum capital requirement in terms of two separately calculated amounts—-first “specific risk” of each security, both for short and long positions, and second “general market risk” towards interest rate risk in the portfolio.
The capital requirement for interest rate risk for the “specific risk” category will be computed based on the lowest rated debt instrument attracting the highest specific risk capital charge, and capital requirements for “general market risk” need to capture the risk of loss arising from changes in market interest rates.
The capital requirement for equity risk for specific risk will be 9%, and for general market risk 9%.
The guidelines are not applicable to cooperative banks, local area banks, payments banks, regional rural banks, and small finance banks.

8. Munich security conference

Subject : International Relations

Section: Msc

Concept :

Billionaire investor George Soros said that the allegations levied by US short-seller Hindenburg Research against the Adani Group threaten to hurt investor confidence in India and might weaken Prime Minister Narendra Modi’s hold on the government.

Munich security conference

The Munich Security Conference is an annual conference on global security issues, was founded by a German official and publisher Ewald-Heinrich von Kleist at the peak of the Cold War.
It is the world’s leading forum for debating international security policy.
It is a venue for diplomatic initiatives to address the world’s most pressing security concerns.
The 2023 conference is being attended by the leaders of France and Germany, as well as U.S. Vice President Kamala Harris and Secretary of State Antony Blinken, China’s top diplomat Wang Yi and NATO chief Jens Stoltenberg.
Russian delegates who were regular attendees at Munich in the past have not been invited.
Background
Munich gained a grim reputation during the 1973 Olympics when the Israeli team was taken hostage by the Palestinian Black September group.
MSC is often remembered as the venue where the Russian President made his famous 2007 speech when he elaborated on the post-Cold War Russian security concerns and publicly opposed the expanding footprint of North Atlantic Treaty Organization (NATO) and placing of nuclear-tipped missiles in Eastern Europe.

Objectives:

The MSC’s objective is to build trust and to contribute to the peaceful resolution of conflicts by sustaining a continuous, curated and informal dialogue within the international security community.
The primary objective of the MSC was to make sense of international affairs in an age when weapons of mass destruction had become part of the game.
The MSC conceives of its conferences as a type of “marketplace of ideas” where initiatives and solutions are developed and opinions are exchanged.
It provides a venue for official and non-official diplomatic initiatives and ideas to address the world’s most pressing security concerns.
In addition to its annual flagship conference, the MSC regularly convenes high-profile events on particular topics and regions and publishes the Munich Security Report.
Audience:
Senior decision-makers as well as thought-leaders from around the world, including heads of state, ministers, leading personalities of international and non-governmental organizations, high-ranking representatives of industry, media, academia, and civil society, come to engage in an intensive debate.

9. Ex Dharma Guardian

Subject : International Relations

Section: Msc

Concept :

The 4th edition of joint military exercise, “EX DHARMA GUARDIAN”, between India and Japan began at Camp Imazu in Shiga province of Japan.

About Exercise Dharma Guardian:

It is a joint military training.
It provides a unique opportunity of achieving synergy between Armed Forces of both the Nations which is focused towards strengthening the timeless bonds of India – Japan friendship.
It provides a platform for professional and cultural learnings well as social interactions which in-turn broadened their horizon towards knowledge and cooperation aiming towards co-existence as one in the Indo-Pacific Region.
Conduct of this exercise covers cross training & combat conditioning in field conditions, sports and cultural exchanges.
It enhances the level of defence cooperation between the Indian Army and Japanese Ground Self Defence Forces and act as a catalyst for many such joint programs in future to further consolidate on the gains achieved.
To promote military cooperation between India and Japan, the first edition of the Dharma Guardian was held at Counter Insurgency Warfare School of the Indian Army at Vairengte in November 2018.

10. MHA designates two outfits as terror organisation

Subject : Polity

Section : Msc

Concept :

The Central Government declared two organization as terrorist organizations under the provisions of the UAPA

Terrorist Organisations

Khalistan Tiger Force (KTF): It is a militant outfit and it aims to revive terrorism in Punjab and challenges the territorial integrity, unity, national security and sovereignty of India and promotes various acts of terrorism, including targeted killings in Punjab.
Jammu and Kashmir Ghaznavi Force (JKGF): It has been found involved in infiltration bids, narcotics and weapon smuggling and carrying out terror attacks in the Union territory of Jammu and Kashmir.
It draws its cadres from various terrorist organisations, such as Lashker-E-Taiba, Jaish-E-Mohammed, Tehreek-ul-Mujahideen, Harkat-ul—Jehad-E-Islami etc.
With this, now there are 54 designated terrorists and 44 designated terrorist organisations under the Ist Schedule of the UAPA.

How does the government declare a terrorist organisation?

In furtherance to India’s Zero Tolerance policy towards terrorism, the Central Government amended the Unlawful Activities (Prevention) Act (UAPA) in August 2019 to include the provision of designating an individual as terrorist.
Prior to this amendment, only organizations could be designated as terrorist organization.

Government measures to curb terrorism

Constitution of a Countering Financing of Terrorism Cell (CFT Cell) in the Ministry of Home Affairs
Constitution of a Terror Funding and Fake Currency Cell in the National Investigation Agency
India organised the third ‘No Money For Terror’ Ministerial Conference in New Delhi.

Kindly refer this article for notes on UAPA – https://optimizeias.com/unlawful-activities-prevention-act/

11. Exercise Mosi II

Subject : International Relations

Section : Msc

Concept :

Exercise Mosi II is a tri-nation naval exercise between Russia, China and South Africa.
The 2023 edition is being held in Durban and Richards Bay, South Africa (Indian Ocean coast) from 17 February.
This is seen as a demonstration of the three countries’ close ties amid Russia’s invasion of Ukraine and China’s tense relationship with the West.
Russia is expected to test-fire Zircon hypersonic missiles during the drills.
The first edition took place off Cape Town in the southwest of South Africa in the waters of the Atlantic Ocean in November 2019.

Richards Bay:

Richards Bay is a large port on the east coast of South Africa, located where the Mhlatuze River drains into the Indian Ocean.
More coal is exported (shipped to other countries) from Richards Bay than from any other port in the world.

Zircon hypersonic missiles

Zircon is a Hypersonic Cruise Missile developed by Russia.
It has been called as one of the invincible missiles by the Russian President.
The missile flies with an advanced fuel that the Russians say gives it a range of up to 1,000 kilometers.
The missile speed is also so fast that the air pressure in front of the weapon forms a plasma cloud as it moves, absorbing radio waves and making it practically invisible to active radar systems.

12. RBI issues draft norms for lending of government securities

Subject : Economy

Section : Monetary Policy

Concept :

The Reserve Bank of India came out with draft norms (Reserve Bank of India (Government Securities Lending) Directions, 2023) for lending and borrowing of government securities with wider participation in the securities lending market.

Key-highlights of the draft guidelines

Government Securities Lending (GSL) transactions shall be undertaken for a minimum period of one day and a maximum period of ninety days.
Government securities issued by the central government excluding Treasury Bills would be eligible for lending/borrowing under a GSL transaction.
Government securities issued by the central government (including Treasury Bills) and the state governments would be eligible for placing as collateral under a GSL transaction.
An entity eligible to undertake repo transactions in government securities, and any other entity approved by the Reserve Bank would be eligible to participate in GSL transactions as lender of securities.

Kindly refer this article for notes on G-secs – https://optimizeias.com/g-sec-2/

13. Global slowdown path still uncertain, India to decouple

Subject: Economy

Section: External Sector

Concept :

Recently, the RBI predicted that even though the global slowdown in 2023 may be milder than previously anticipated, the trajectory still remains unpredictable.
It was stated that India’s economy would likely decouple from the rest of the world.
Domestic consumption and investment will benefit from improved agricultural and related activity prospects, increased business and consumer confidence, and rapid credit growth.

What is decoupling ?

Generally, Decoupling occurs when the returns of an asset class that have been correlated with other assets in the past no longer move in-step according to expectations.
Decoupling may also refer to a disconnect between a country’s investment market performance and the state of its underlying economy.
Investors can view a decoupling as an opportunity if they believe that the previous pattern of correlation will return, but there is no guarantee that it will.
Many sustainable development economists also advocate for decoupling economic growth from environmental pressures—i.e., finding ways to achieve growth without increasing environmental consequences.
Relative decoupling refers to a decreasing correlation between two assets, while absolute decoupling means a zero or negative correlation.