Daily Prelims Notes 22 May 2023

May 22, 2023
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Daily Prelims Notes

22 May 2023

Table Of Contents

1. Withdrawal of Rs. 2000 notes by the RBI: Reasons, concepts

Subject: Economy

Section: Monetary Policy

RBI issues and withdraws notes of various denominations under powers granted as per Section 24(1) of the RBI Act, 1934.
Withdrawal is different from demonetization in that the currency in case of withdrawal still remains a legal tender, but becomes void in case of the latter.

The objective of the Reserve Bank’s Clean Note Policy is to give the citizens good quality currency notes and coins while the soiled notes are withdrawn out of circulation.

This has been done as part of ‘Clean Note Policy’ as part of which RBI aims to ensure that currency notes and coins that are of:
- Good quality, not soiled
- Not counterfeit
- Good security features
The Reserve Bank has also instructed the banks to issue only good quality clean notes to the public and refrain from recycling the soiled notes received by them over their counters. The Reserve Bank has installed high speed Currency Verification and Processing Systems (CVPS) machines at all its offices which deal with currency. These machines are capable of processing 50,000-60,000 pieces per hour and soiled notes are shredded and briquetted on-line.
All notes prior to 2005 have also been withdrawn by RBI earlier in 2014. This was done as per standard international practice of not having multiple ‘series’ of denomination in circulation, as newer notes had better security features. But any note prior to 2005 continues to be legal tender.
For Rs. 2,000 notes although RBI has given a time limit to deposit/exchange, they will continue to be legal tender.
Currency with the public is seen as a leakage out of the financial system as soon as it no longer serves as the base for creation of money as per Fraction reserve banking, wherein a certain multiple of credit can be created by the bank for every rupee held.
- Around 2-3 million rupees banking liquidity leaks out as currency in circulation.

Process:

The RBI has established rules in place for the disposal of notes unfit for circulation.

The currency notes, after collection from the concerned banks, are deposited at the Issue offices of the Reserve Bank. After their grouping and sorting under the Currency Verification and Processing System (CVPS), the RBI examines the currency notes to determine their genuineness.

Each CVPS installation is capable of processing up to 60,000 currency notes each hour. CVPS counts the notes and separates genuine ones from the fake currency notes. The fake notes are destroyed by shredding.
The genuine currency notes which still had quality and life left for circulation before being deemed scrapped, are shredded in a way that they could be recycled into the new currency papers.
This means that paper used to make you ₹2,000 currency note would eventually come back to your pocket in some other denomination.

What happens to fake or less-qualitative currency notes?

They are shredded and converted into briquettes. Such briquettes are sold for industrial use through a tender invited by the Reserve Bank of India.
In 2016, when India’s Prime Minister Narendra Modi announced the demonetisation of about 89 per cent of the country’s currency in circulation, RBI’s state branch in Kerala state’s Thiruvananthapuram sold it to India’s only hardboard making factory, The Western India Plywoods Limited.
The factory in the state’s Kannur district reportedly uses a combination of around 5 per cent of the paper pulp created from these notes with 95 per cent of conventional wood pulp to make hardboards.
The Kannur factory reportedly received around 80 metric tonnes of shredded demonetised notes in the first three weeks after November 8, 2016 when the demonetisation was implemented.

Background:

Ever since 1999, when the Governor announced the Clean Note Policy, several steps were taken for augmenting the supply of currency notes and coins. The members of public were urged not to write on the currency notes and banks were instructed to provide unrestricted facility for exchange of soiled and mutilated notes.

As per the Reserve Bank instructions, currency chest branches of the banks must offer, even to non-customers, good quality notes and coins in exchange for soiled and mutilated notes. Complaints, however, continue to be received in this regard from the public and trade bodies that these instructions have not been given full effect.

Withdrawal of Rs. 2,000 notes to have following effects:

Improve short term banking system liquidity: As the withdrawn notes are deposited with banks, they will have excess liquidity, which will go towards:
1. Government securities: Banks resort to parking excess funds in government securities.
2. Overnight money (Call money) market: Generally the overnight interbank (call rate) is more than the repo-rate. But this may change with sudden increase in short term fund availability.
Reduce short term interest rates: The rates for government bonds will see a reduction, firstly for the t-bills and then later possibly for 3 and 5 year bonds also.
Increased demand for Treasury bills: The increased demand in auctions will result in higher prices for government bonds.
Decrease bond yield ie. increase bond prices: Bond yield is nothing but the implicit rate at which the face value of the bond is discounted to get today’s price. Thus say a Rs. 1000 bond discounted by 10 % implicit rate is priced at Rs. 909. So bond price and yield follow an inverse relationship.
Dip in cash: Since all the 2000-rupee notes will come back in the banking system, we will see a reduction in cash in circulation and that will in turn help improve banking system liquidity

2. World Bee Day: Climate change may be causing an apple crisis in Himachal and Kashmir this year; here’s how

Subject :Environment

Section: Biodiversity

Context: Climate change is causing bees, among nature’s primary pollinators, to die in Himachal Pradesh and the Kashmir Valley

Concept:

Almost 100 per cent of apple growers in Kashmir use bees for pollination.
A study by Tamil Nadu Agricultural University shows that pollination from bees increased apple production by 44 per cent.
Two species are used for large and commercial pollination in India. They are Apis mellifera or the Italian bee and the Apiscerana indica or the Indian bee. Of these, Apis mellifera is mostly used as it is much larger than Apiscerana.
Cerana usually flies less than a kilometre while the Italian bee flies up to six kilometers. Cerana flies at temperatures between 16 and 21 degrees Celsius and low light, while mellifera flies at temperatures between 21 and 25 degrees Celsius.
mellifera is more agile than native bees. It reaches 25 to 30 flowers in a minute. Because of this, this bee also does the pollination process faster.
Apiscerena goes from one flower to another in three to four seconds and can pollinate only 20 flowers in a minute.
Mellifera bees were first brought to India in 1962 and reared in Nagrota, Himachal Pradesh. Since then, they have been used to promote horticulture in the state.
Italian bees have proved to be very helpful in fruit pollination, the increase in its numbers are also result in gradual decline in the number of native bees

Reasons for the decrease in the number of naturally occurring insects:

Clearing of forests for farming and horticulture
decrease in the habitat and plants which supply food to these insects
the indiscriminate use of pesticides
change in weather

What is Pollinator?

A pollinator is anything that helps carry pollen from the male part of the flower (stamen) to the female part of the same or another flower (stigma).
The movement of pollen must occur for the the plant to become fertilized and produce fruits, seeds, and young plants.
Some pollinators, including many bee species, intentionally collect pollen. Others, such as many butterflies, birds and bats move pollen accidentally.

Additional Info:

Apple:

Apple (Malus pumila) is commercially the most important temperate fruit and is fourth among the most widely produced fruits in the world after banana, orange and grape.
China is the largest apple producing country in the world.
Apples originated in the Middle East more than 4000 years ago
It is mostly grown in the states of Jammu & Kashmir, Himachal Pradesh, Uttaranchal, Arunachal Pradesh and Nagaland
Apple can be grown at altitudes 1,500-2,700 m. above m.s.l
The temperature during the growing season is around 21-240 C. For optimum growth and fruiting, apple trees need 100-125 cm. of annual rainfall, evenly distributed during the growing season
Loamy soils, rich in organic matter with pH 5.5 to 6.5 and having proper drainage and aeration are suitable for cultivation.
Dry temperate areas are suitable for apple cultivation.
India’s share in the total world apple production is merely 2.05 per cent. Only around 1.6% of the country’s production gets exported.

World Bee Day

It is celebrated on May 20. On this day Anton Janša, the pioneer of beekeeping, was born in 1734.
The purpose of the international day is to acknowledge the role of bees and other pollinators for the ecosystem
The UN Member States approved Slovenia’s proposal to proclaim 20 May as World Bee Day in December 2017

3. G7’s climate Wishlist, and the realities of efforts to cap warming

Subject :Environment

Section: International conventions

Context:

The G7 summit, hosted by this year’s Japanese G7 presidency, takes place in Hiroshima City, Japan from 19-21 May.

G7 climate commitments:

The G7 stressed on the need for a global peak in emissions by 2025.
The G7 — the US, the UK, Germany, Italy, Japan, France and Canada — claimed that their emissions had already “peaked”, and asked all “major economies” to ensure that their individual emissions do not continue to rise beyond 2025.
Major economies” is not defined, but in the context of climate change, it usually includes countries like India, China, Brazil, South Africa, and Russia, each of which is a significant emitter
The 2025 peak year is not mandated under the Paris Agreement or any other international decision
Global peak of greenhouse gas emissions by 2025 is not implausible. The biggest emissions year so far has been 2019 — about 55 billion tonnes of carbon dioxide equivalent
Estimates from UN Climate Change suggest that if all countries took only those measures that they have promised so far, emissions in 2030 would be about 11% higher than 2010 levels.
The G7 reiterated its commitment to turn net-zero by 2050, and asked all ‘major economies’ to attain net-zero status by that year and to come up with detailed road maps to reach the target
But Scientist says that the world as a whole must become net zero by mid-century in order to meet the 1.5 degree Celsius target.
China has said it would turn net-zero only in 2060, while India has set 2070 as the target. Some other countries, including big emitters like Russia and Saudi Arabia, have 2060 as their net-zero targets
The G7 countries put no deadline to ending the use of fossil fuels, only saying that they were committed to accelerating the phase-out of “unabated fossil fuels” in line with 1.5 degree Celsius trajectories
Unabated” is not clearly defined; they also said they would eliminate “inefficient fossil fuel subsidies” by 2025 or earlier, without defining “inefficient subsidies”.
The G7 also claimed they had stopped financing new fossil fuel-based energy projects “except in limited circumstances”

The G-7:

The G-7 or ‘Group of Seven’ are Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.
The G-7 nations meet at annual summits that are presided over by leaders of member countries on a rotational basis. The summit is an informal gathering that lasts two days, in which leaders of member countries discuss a wide range of global issues.
The G-7 does not have a formal constitution or a fixed headquarters.
The decisions taken by leaders during annual summits are non-binding.
It is an intergovernmental organisation that was formed in 1975 by the top economies of the time as an informal forum to discuss pressing world issues.
Canada joined the group in 1976, and the European Union began attending in 1977.
The G-7 was known as the ‘G-8’ for several years after the original seven were joined by Russia in 1997. The Group returned to being called G-7 after Russia was expelled as a member in 2014 following the latter’s annexation of the Crimea region of Ukraine.

4. Guardians of the Ganga: task force keeps a watchful eye on the river

Subject : Environment

Section: Pollution

Context:

Over 4,000 volunteers under the NamamiGange initiative have been keeping a check on littering and poaching in the river to make sure that its flora, fauna are intact; in return, the Wildlife Institute of India has helped them with livelihood training

Concept:

NamamiGange Programme:

It an Integrated Conservation Mission, approved as a ‘Flagship Programme’ in June 2014.
It seeks to accomplish the twin objectives of effective abatement of pollution and conservation and rejuvenation of National River Ganga.
It is being operated under Ministry of Jal Shakti.
The program is being implemented by the National Mission for Clean Ganga (NMCG), and its state counterpart organizations i.e., State Program Management Groups (SPMGs).
NMCG is the implementation wing of National Ganga Council (set in 2016; which replaced the National Ganga River Basin Authority (NRGBA).
National Ganga Council (NGC) was Created in October 2016 under the River Ganga (Rejuvenation, Protection and Management) Authorities Order, 2016. It is Headed by Prime Minister.
It has a Rs. 20,000-crore, centrally-funded, non-lapsable corpus and consists of nearly 288 projects.
Main Pillars of the NamamiGange Programme are:
Sewerage Treatment Infrastructure
River-Surface Cleaning
Afforestation
Industrial Effluent Monitoring
River-Front Development.

The United Nations in December 2022 recognised the initiative as one of the top 10 World Restoration Flagships involved in reviving the natural world

Ganga Prahari

This is a task force of volunteers constituted by the National Mission for Clean Ganga and the Wildlife Institute of India (NMCG-WII) under the NamamiGange programme
The concept of the Ganga Prahari was mooted by Ruchi Badola, the dean at WII and nodal officer of the Biodiversity Conservation and Ganga Rejuvenation project.
The task force, which now has over 4,000 volunteers in 100 districts across Uttarakhand, Uttar Pradesh, Jharkhand, Bihar, and West Bengal, keeps a check on river protection, preventing people from littering, as well as reports poaching.

5. City of Bakhmut

Subject : International Relations

Section: Places in news

Concept :

Ukraine’s President Vlodymyr Zelensky on the G7 platform has denied the claims Russia that said they have captured the city of Bakhmut in Ukraine.

Bakhmut in Ukraine

Bakhmut is a city in eastern Ukraine that has been at the centre of a fierce conflict between Ukrainian and Russian forces since February 2022.
The city, which lies on the Bakhmutka River, is the administrative centre of the Bakhmut Raion district and has a population of about 77,000 people.
The town is known for its salt industry, which dates back to the 18th century and produces about 200,000 tons of salt per year.
Bakhmut is also a cultural and educational centre, with several museums, theatres, libraries and schools.
The town has a rich architectural heritage, featuring buildings from different historical periods and styles, such as Baroque, Classicism, Art Nouveau and Constructivism.
The battle for Bakhmut has become a symbol of resistance for Ukraine and a target of conquest for Russia.
Both sides have claimed to control the city at different times, but the situation remains fluid and uncertain.
As of May 2023, Russia says it has fully captured Bakhmut, but Ukraine denies this and says it still holds part of the city and is trying to encircle the enemy forces.
The international community has condemned Russia’s aggression and expressed support for Ukraine’s sovereignty and territorial integrity.

6. Post of Deputy CM

Subject : Polity

Section: Executive

Concept :

K Shivakumar sworn in as Deputy Chief Minister of Karnataka

Details:

Appointment of a Deputy CM has been a long-standing feature of Indian politics.
The post of Deputy CM represents a political compromise that often follows the formation of a coalition government or when no single leader commands unchallenged authority in the party in power and loyalty across all key interest groups.

Deputy Chief Minister

The post of Deputy Chief Minister in India is not a constitutional one, but a political arrangement to appease allies or factions within a party.
The Deputy CM is equivalent to a Cabinet Minister in terms of rank and perks but does not have any specific financial or administrative powers.
The Deputy CM has to report to the Chief Minister and seek his or her approval for any decision related to his or her portfolio.
The Deputy CM does not have access to the files or matters that are meant for the Chief Minister.

History of the post of Deputy CM

The first leader to hold the post of deputy CM in independent India was the Congress’s Anugrah Narayan Sinha.
He was one of the tallest leaders to emerge from Bihar, termed the “mason of modern Bihar and its politics”.
Later on, Karpoori thakur became deputy CM in 1967.
Subsequently more states began to follow this pattern.
As of 22 May 2023, 11 out of the 28 states have deputy chief ministers.
In the northeastern states, where multi-party coalition governments are the norm, four of the seven states have Deputy CMs.

Appointment and removal

The appointment and removal of a deputy chief minister is entirely at the discretion of the chief minister.
The chief minister may appoint more than one deputy chief minister, as is the case in some states like Uttar Pradesh.
The chief minister may also reshuffle or drop a deputy chief minister at any time, as per their political calculations.

Significance of the Post of Deputy Chief Minister

The position of deputy chief minister is used to bring political stability and strength to a coalition government. It is also a way of rewarding loyal and influential leaders of the ruling party or alliance.
The Deputy CM acts as the chief minister’s deputy and assists them in the administration and governance of the state.
In some cases, the Deputy CM may act as a bridge between the ruling party and its allies, or between different regions or communities within the state.
The Deputy CM may be seen as a potential successor to the Chief Minister, or as a check and balance on his or her authority.
The Deputy CM may have some influence on policy-making and governance, depending on his or her rapport with the Chief Minister and other ministers.
The Deputy CM may also perform some of the functions of the chief minister in their absence, such as presiding over cabinet meetings, attending official functions, or representing the state in inter-state or national forums.
However, the deputy chief minister does not have any constitutional authority to act on behalf of the chief minister or to issue any orders or directives without their consent.

7. Understanding a Human Pan-genome Map

Subject : Science and technology

Section: Biotechnology

Concept :

A new study published in the journal Nature describes a pangenome reference map created utilising genomes from 47 anonymous individuals (19 men and 28 women), mostly from Africa but also from the Caribbean, Americas, East Asia, and Europe.

Genome

The genome is the blueprint of life, a collection of all the genes and regions between the genes contained in our 23 pairs of chromosomes.
Each chromosome is a contiguous stretch of DNA string composed of millions of individual building blocks called nucleotides or bases.
Genome sequencing is the method used to determine the precise order of the four letters and how they are arranged in chromosomes.
Sequencing individual genomes helps us understand human diversity at the genetic level and how prone we are to certain diseases.
To circumvent this, one can have a collective identity card, such as a single genome identity card for everyone living in a region.

Reference genome

The making of the first reference genome in 2001 was a scientific breakthrough, helping scientists discover thousands of genes linked to various diseases and design novel diagnostic tests.
However, the reference genome was 92% complete and contained many gaps and errors.
Since then, the reference genome map has been refined and improved to have complete end-to-end sequences of all 23 human chromosomes.
However, the finished reference genome map does not represent all of human diversity.
This new study published in Nature changes this, describing the making of the pangenome map, the genetic diversity among the 47 individuals, and the computational methods developed to build the map and represent differences in those genomes.

Pangenome map

The pangenome is a graph of each chromosome, with nodes where sequences of all 47 individuals converge and internodes representing genetic variations.
To create complete and contiguous chromosome maps, researchers used long-read DNA sequencing technologies, which produce strings of contiguous DNA strands of tens of thousands of nucleotides long.
This helps assemble the sequences with minimum errors and read through repetitive regions of the chromosomes.

Why is a pangenome map important?

The human genome consists of 3.2 billion individual nucleotides, with a 0.4% difference between any two individuals.
A complete and error-free pangenome map will help us understand these differences and explain human diversity better.
It has added nearly 119 million new letters and aided the discovery of 150 new genes linked to autism.
Future pangenome maps that include high quality genomes from Indians will shed light on disease prevalence, help discover new genes for rare diseases, design better diagnostic methods, and help discover novel drugs.