Daily Prelims Notes 27 June 2021

June 27, 2021
Posted by: OptimizeIAS Team
Category: DPN

Daily Prelims Notes

27 June 2021

Table Of Contents

1. IMF says board discussed US 650 Billion dollars expansion of reserves

Subject : International Organisations

Context : The International Monetary Fund’s executive board on Friday discussed a proposed $650 billion expansion of its emergency reserves, marking the next step in a process expected to be completed in August, the IMF said in a statement.

Concept :

G7 leaders this month welcomed the proposed expansion of the IMF’s emergency reserves, and backed a global target of providing $100 billion to the most vulnerable countries.

Reserve Tranche

A reserve tranche is a portion of the required quota of currency each member country must provide to the International Monetary Fund (IMF) that can be utilized for its own purposes—without a service fee or economic reform conditions.
Initially, member nations’ reserve tranches are 25% of their quota, but this position can change according to any lending that the IMF does with its holdings of the member’s currency.
The reserve tranches that countries hold with the IMF are considered their facilities of first resort, meaning they will tap into them before seeking a formal credit tranche that charges interest.
The IMF is funded through its members and their quota contributions. The reserve tranche is basically an emergency account that IMF members can access at any time without agreeing to conditions or paying a service fee.

2. Aadhaar & PAN data of workmen in multiple cos under insolvency

Subject : National Organisations

Context : Officials aware of developments admitted to the “mistake”, which happened as the Insolvency and Bankruptcy Board of India (IBBI) was working on a portal to host details of claims by all creditors against corporates undergoing a corporate insolvency resolution process (CIRP), to improve transparency in the bankruptcy process.

Concept :

Government agencies have previously issued public warnings against revealing details of Aadhaar or PAN publicly as such information could be used for identity theft.

CIRP

Corporate Insolvency Resolution Process (CIRP) is a recovery mechanism for creditors. If a corporate becomes insolvent, a financial creditor, an operational creditor, or the corporate itself may initiate CIRP.
Financial Creditor could be any person to whom a business debt is owed or a person to whom such amount is legally assigned or transmitted. For example: Banks or other financial institutions
Operational Creditor could be any person to whom an operational debt is owed and includes any person to whom such amount has been legally assigned or transferred for goods or services done by them. For example: vendors and suppliers, employees, government etc.
The Insolvency and Bankruptcy Code, 2016 provides a provision for an application for insolvency or bankruptcy of start-ups, individuals, partnership firms, limited liability partnership, and companies.
The Code has provided a slab of default amount in each category however the final amount is to be notified by the Government as the trigger point to initiate the proceeding while keeping in view the fluctuation of the economy.
It is important to understand that the said amount is not the minimum or maximum fixed amount of debt default but it is a ‘range’.
CIRP is initiated after making an application. CIRP is the process through which it is determined whether the person who has defaulted is capable of repayment or not. If a person is not capable of repaying the debt the company is restructured or liquidated.

3. Decline in gold & curerncy assets pull forex reserves off record high

Subject : Economy

Context : Sliding from the life-time high recorded a week ago, the forex reserves declined by $4.148 billion to reach $603.933 billion for the week ended June 18 on account of a fall in gold and currency assets, as per data from the Reserve Bank of India (RBI).

Concept :

Sustained foreign direct investment (FDI) and foreign portfolio investor (FPI) inflows had led to the gains in foreign exchange — or forex — reserves in the past few weeks.
In the reporting week ended June 18, the FCA — a major component of the overall reserves — declined by $1.918 billion to $561.540 billion for the reporting week, as per data released by by the Reserve Bank on Friday.

Foreign Exchange Reserves:

Foreign exchange reserves are assets held on reserve by a central bank in foreign currencies, which can include bonds, treasury bills and other government securities.
It needs to be noted that most foreign exchange reserves are held in U.S. dollars.
These assets serve many purposes but are most significantly held to ensure that the central bank has backup funds if the national currency rapidly devalues or becomes altogether insolvent.

India’s Forex Reserves include:

Foreign Currency Assets
Gold
Special Drawing Rights
Reserve position with the International Monetary Fund (IMF)

Foreign Currency Assets

FCA are assets that are valued based on a currency other than the country’s own currency.
FCA is the largest component of the forex reserve. It is expressed in dollar terms.
FCA includes the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves.
Currency appreciation refers to the increase in value of one currency relative to another in the forex markets.
Currency depreciation is a fall in the value of a currency in a floating exchange rate system.
In a floating exchange rate system, market forces (based on demand and supply of a currency) determine the value of a currency.

Special Drawing Rights

The SDR is an international reserve asset, created by the International Monetary Fund (IMF) in 1969 to supplement its member countries’ official reserves.
The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. SDRs can be exchanged for these currencies.
The value of the SDR is calculated from a weighted basket of major currencies, including the U.S. dollar, the euro, Japanese yen, Chinese yuan, and British pound.
The interest rate on SDRs or SDRi is the interest paid to members on their SDR holdings.

Reserve Position in the International Monetary Fund

A reserve tranche position implies a portion of the required quota of currency each member country must provide to the International Monetary Fund (IMF) that can be utilized for its own purposes.
The reserve tranche is basically an emergency account that IMF members can access at any time without agreeing to conditions or paying a service fee.

4. Multi-drug resistance

Subject : Science & tech

Context : It is not clear why some bacteria evolve multi-drug resistance while others do not. New research from the Population Biology Lab at IISER Pune could hold a key to this and a similar class of puzzles.

Concept :

When bacteria become fit in one environment, they either lose fitness or fail to increase fitness in other environments. “Our study is showing that when the environment is fluctuating, large (but not small) populations can by-pass this effect.

Multiple drug resistance (MDR)

Multiple drug resistance (MDR), multidrug resistance or multi resistance is antimicrobial resistance shown by a species of microorganism to at least one antimicrobial drug in three or more antimicrobial categories.
Antimicrobial categories are classifications of antimicrobial agents based on their mode of action and specific to target organisms.
The MDR types most threatening to public health are MDR bacteria that resist multiple antibiotics; other types include MDR viruses, parasites (resistant to multiple antifungal, antiviral, and antiparasitic drugs of a wide chemical variety).
Recognizing different degrees of MDR in bacteria, the terms extensively drug-resistant (XDR) and pandrug-resistant (PDR) have been introduced.
Extensively drug-resistant (XDR) is the non-susceptibility of one bacteria species to all antimicrobial agents except in two or less antimicrobial categories.
Within XDR, pandrug-resistant (PDR) is the non-susceptibility of bacteria to all antimicrobial agents in all antimicrobial categories.

5. Clues from meteorite to Earth’s mantle

Subject : Science & tech

Context : A new study has now shown that by studying this meteorite and its minerals we may find new clues about the Earth’s lower mantle

Concept :

On November 13, 2015, a meteorite fell near the town of Kamargaon in Assam, India. It weighed a little over 12 kg and scientists decoded its mineral composition and classified it as a chondrite, a variety of stony meteorite.
Using new high-resolution electron microscopy and spectroscopy, researchers studied this dissociation reaction of olivine in the Kamargaon meteorite. They noted an alternative mechanism and reactions that may be driving the transformation of olivine.
It is possible that when materials are transported to the lower mantle by convection or subduction, there would be high-temperature conditions in the lower mantle that would cause this dissociated reaction.

Meteor, Meteorite and Meteoroid

When meteoroids enter Earth’s atmosphere (or that of another planet, like Mars) at high speed and burn up, the fireballs or “shooting stars” are called meteors.
When a meteoroid survives a trip through the atmosphere and hits the ground, it’s called a meteorite.
Meteorites are classified into three groups: Stony (silicaterich), Iron (Fe–Ni alloy), and Stony Iron (mixed silicate iron alloy).

Components of Meteorite:

Detailed spectroscopic studies revealed that the meteorite had very high (about 90%) phyllosilicate minerals comprising both magnesium and iron.
Forsterite and FeO olivine, calcium aluminium rich inclusion (CAI) minerals.
Few magnetites, sulphides, aluminium complexes and calcites were also found.

6. Pattamadai mat weavers adopt digital marketing

Subject : National Organisations

Context : When the ‘kora’ mat weavers of Pattamadai village in Tirunelveli district wanted avenues to sell their products during the last lockdown, the Crafts Council of India decided to give them a month-and-half-long training on how to do business using internet and smart phones.

Concept :

The Crafts Council of India (CCI) was founded in 1964 by Kamaladevi Chattopadhyay as one of her pioneering efforts toward protecting and enhancing India’s heritage in the nation’s transition to modernity
She brought together a band of volunteers in CCI to help build a lasting awareness of the knowledge and skills of India’s artisans, and to help address their needs within a rapidly changing environment.
It is with the purpose of protecting this identity, that the CCI was established. The CCI is a registered not for profit Society head-quartered in Chennai, Tamilnadu.
Regional and local efforts were encouraged, particularly through the founding of Crafts Councils in different States.
Today CCI works together with a network of 9 State councils.
CCI is engaged in partnerships with the Government of India and other activists to ensure a national awareness of the economic, social, cultural and environmental importance of artisans and their crafts.

Pathamadai mat

Traditional art of weaving pathamadai mat belongs to the Tirunelveli district of Tamil Nadu.
Pathamadai mat is made up of Korai grass.
Pathamadai mats have been granted Geographical Indication (GI) status by the trademarks and GI authorities.
These are made specially for wedding ceremonies and have bride’s and groom’s names as well as the wedding date woven in it.

7. DRAFT CODE ON SOCIAL SECURITY (EMPLOYEE’S COMPENSATION) (CENTRAL) RULES 2021

Subject : Legislations

Context : Ministry of Labour and Employment has notified the draft rules relating to Employee’s Compensation under the Code on Social Security, 2020 for suggestions.

Concept :

The Code on Social Security, 2020 amends and consolidates the laws relating to social security to extend social security to employees and workers in the organised as well as unorganised sectors.
Chapter VII (Employee’s Compensation) of the Social Security Code, 2020 envisages, inter-alia, provisions relating to employer’s liability for compensation in case of fatal accidents, serious bodily injuries or occupational diseases.

The draft Employee’s Compensation rules notified by the Central Government provide for the

provisions relating to manner of application for claim or settlement,
rate of interest for delayed payment of compensation,
venue of proceedings and transfer of matters, notice and manner of transmitting money from one competent authority to another and
arrangements with other countries for the transfer of money paid as compensation.

8. 42nd session of FAO Conference

Subject : International Organisations

Context : Union Minister of Agriculture and Farmers’ Welfare Narendra Singh Tomar addressed the 42nd session of FAO Conference.

Concept :

The Food and Agriculture Organization of the United Nations (FAO) is a specialized agency of the United Nations that leads international efforts to defeat hunger and improve nutrition and food security.
Its Latin motto, fiat panis, translates to “let there be bread”.
It was founded in 1945. It completed 75 years of service to humanity on 16th Oct 2020.
The FAO is headquartered in Rome, Italy.
Composed of 197 member states, the FAO is governed by a biennial conference representing each member country and the European Union, which elects a 49-member executive council.

Initiatives

World Food Summits are convened by the Food and Agriculture Organization of the United Nations. The first food summit, the “World Food Conference”, took place in Rome in 1974.
The International Plant Protection Convention (IPPC) is a 1951 multilateral treaty overseen by the United Nations Food and Agriculture Organization.

9. ITAT e-Dwar

Subject : Governance

Context : Recently, the Union Ministry of Law & Justice has released a portal called ‘Itat-e-Dwar’.

Concept :

About ITAT e-Dwar

It is an e-filing portal of Income Tax Appellate Tribunal.
It will enable online filing of Appeals, Applications, documents etc. by various parties.
It would not only result in economization of the use of paper, savings in costs but also rationalization of the fixation of cases leading to quicker disposal of cases.
It seeks to bridge the divide between the digital haves and the digital have nots leading to digital inclusion achieved by technology.

About Income Tax Appellate Tribunal

It is a quasi-judicial institution set up in January, 1941.
It specializes in dealing with appeals under the Direct Taxes Acts.
The orders passed by the ITAT are final, an appeal lies to the High Court only if a substantial question of law arises for determination.
It draws inspiration from its motto ‘Nishpaksh Sulabh Satvar Nyay’, which means impartial, easy and speedy justice.
It stands out for its uniqueness of imparting justice to the litigants, by an inexpensive, easily accessible forum free from technicalities, regarded for its expert knowledge on the subject of Direct Taxes etc.

10. Tuberculosis (TB) Mukt Bharat Abhiyaan

Subject : Governance

Context : Recently, the Union Minister of Health & Family Welfare chaired the Tuberculosis (TB) Mukt Bharat meeting with various Development Partners of the Health Ministry.

Concept :

Tuberculosis (TB) Mukt Bharat Abhiyaan

It was launched under the National Strategic Plan for TB Elimination in a mission mode for ending the epidemic by 2025.
It is a multi-pronged approach which aims to detect all TB patients with an emphasis on reaching TB patients seeking care from private providers and undiagnosed TB in high-risk populations,

About National Strategic Plan for TB Elimination

It is a framework to guide the activities of all stakeholders whose work is relevant to TB elimination in India.
It provides goals and strategies for the country’s response to the disease during the period 2017 to 2025.
It aims to direct the attention of all stakeholders on the most important interventions or activities that the RNTCP believes will bring about significant changes in the incidence, prevalence and mortality of TB.
It will guide the development of the national project implementation plan (PIP) and state PIPs, as well as district health action plans (DHAP) under the national health mission (NHM).
VISION: TB-Free India with zero deaths, disease and poverty due to tuberculosis
GOAL: To achieve a rapid decline in burden of TB, morbidity and mortality while working towards elimination of TB in India by 2025.

Tuberculosis

It is a contagious infection that usually attacks your lungs.
It can also spread to other parts of body such as brain and spine.
It is caused by a bacteria called Mycobacterium tuberculosis.
It can spread from person to person through microscopic droplets released into the air.

11. Cinque Island

Subject : Geography

Context : Recently, the Indian Coast Guard (ICG) had rescued nine crew members from sinking vessel Ganga-I off Cinque Island.

Concept :

The ICG had launched a Search and Rescue (SAR) operation in coordination with Port Management Board (PMB), Port Blair in which ICG ships and PMB Tug ‘Ocean Marvel’.
The ICG ship C-146 and ICG ship C-412 on routine deployment were diverted for assistance.
The ICG ship Durgabai Deshmukh and PMB Tug ‘Ocean Marvel’ sailed from Port Blair with a damage control team and de-flooding equipment for immediate assistance.

About Cinque Island

It is located between the Passage and Duncan Island towards the north side of Andaman and Nicobar Islands.
It is further divided into North and South Cinque islands.
It shares its boundaries with Wandoor Marine National Park, also commonly referred to as the Mahatma Gandhi Marine National Park.
The passage between North Cinque Island and Rutland is called Manners Strait.
The passage between South Cinque and North Cinque is called Cinque Strait.

Passage in Andaman and Nicobar Islands

Duncan Pass: It separates Rutland Island (part of Great Andaman) to the north and Little Andaman to the south.
Ten Degree Channel: It separates the Andaman Islands and Nicobar Islands from each other in the Bay of Bengal.