Daily Prelims Notes 6 February 2021
- February 6, 2021
- Posted by: admin1
- Category: DPN
Daily Prelims Notes
6 February 2021
All 6 CSE Prelims Qualified
4 CSE Mains Qualified
If I can do it, you can too
Table Of Contents
- PM FASAL BHIMA YOJANA
- ACCOMODATIVE MONETARY POLICY
- G -SECS
- CASH RESERVE RATIO
- TRIPS COUNCIL
- KHAN ABDUL GHAFFAR KHAN
- VOTE ON ACCOUNT
- CIRCLE RATE
- WHITE GOODS
- EMERGENCY USE APPROVAL
Subject : Government Schemes
Context : The number of farmers’ crop insurance claims that were rejected by insurance companies under the Centre’s flagship Pradhan Mantri Fasal Bima Yojana (PMFBY) multiplied 10 times in just two years.
- Launched in April, 2016, after rolling back the earlier insurance schemes viz. National Agriculture Insurance Scheme (NAIS), Weather-based Crop Insurance scheme and Modified National Agricultural Insurance Scheme (MNAIS).
- Premium: It envisages a uniform premium of only 2% to be paid by farmers for Kharif crops, and 1.5% for Rabi crops. The premium for annual commercial and horticultural crops will be 5%.
- The scheme was conceived as a milestone initiative to provide a comprehensive risk solution at the lowest uniform premium across the country for farmers.
- Premium cost over and above the farmer share is equally subsidized by States and GoI.
- However, GoI shares 90% of the premium subsidy for the North Eastern States to promote the uptake in the region.
Coverage of Risks and Exclusions:
- Following stages of the crop and risks leading to crop loss are covered under the scheme.
- Prevented Sowing/ Planting Risk: The insured area is prevented from sowing/ planting due to deficit rainfall or adverse seasonal conditions
- Standing Crop (Sowing to Harvesting): Comprehensive risk insurance is provided to cover yield losses due to non-preventable risks, viz. Drought, Dry spells, Flood, Inundation, Pests and Diseases, Landslides, Natural Fire and Lightening, Storm, Hailstorm, Cyclone, Typhoon, Tempest, Hurricane and Tornado.
- Post-Harvest Losses: Coverage is available only up to a maximum period of two weeks from harvesting for those crops which are allowed to dry in cut and spread condition in the field after harvesting against specific perils of a cyclone and cyclonic rains and unseasonal rains.
- Localized Calamities: Loss/ damage resulting from the occurrence of identified localized risks of hailstorm, landslide, and Inundation affecting isolated farms in the notified area.
Subject : Economics
Context : The Reserve Bank of India (RBI) on Friday said it would retain an accommodative policy stance into the next financial year to help revive growth on a durable basis.
- Accommodative monetary policy, also known as loose credit or easy monetary policy, occurs when a central bank attempts to expand the overall money supply to boost the economy when growth is slowing (as measured by GDP).
- The policy is implemented to allow the money supply to rise in line with national income and the demand for money.
- Accommodative monetary policy is triggered to encourage more spending from consumers and businesses by making money less expensive to borrow through the lowering of short-term interest rates.
- When money is easily accessible through banks, the money supply in the economy increases. This leads to increased spending.
- When businesses can easily borrow money, they have more funds to expand operations and hire more workers, which means that the unemployment rate will decrease.
- On the other hand, people and businesses tend to save less when the economy is stimulated due to the low savings interest rates offered by banks.
Subject : Economics
Context : The Reserve Bank of India (RBI) said it would allow retail investors to open gilt accounts with the central bank to invest in government securities directly and without the help of intermediaries.
- This is a major structural reform placing India among select few countries which have similar facilities.
- This measure together with HTM [hold to maturity] relaxation, will facilitate smooth completion of the government borrowing programme in 2021-22.
- A Government Security (G-Sec) is a tradable instrument issued by the Central Government or the State Governments.
- It acknowledges the Government’s debt obligation.
- Such securities are short term (usually called treasury bills, with original maturities of less than one year- presently issued in three tenors, namely, 91 day, 182 day and 364 day) or long term (usually called Government bonds or dated securities with original maturity of one year or more).
- In India, the Central Government issues both, treasury bills and bonds or dated securities while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).
- G-Secs carry practically no risk of default and, hence, are called risk-free gilt-edged instruments.
- Gilt-edged securities are high-grade investment bonds offered by governments and large corporations as a means of borrowing funds.
Subject : Economics
Context : 10.5% growth in 2021-22, will raise CRR in two stages, says RBI.
- It is a certain minimum amount of deposit that the commercial banks have to hold as reserves with the central bank.
- The percentage of cash required to be kept in reserves, vis-a-vis a bank’s total deposits, is called the Cash Reserve Ratio.
- The cash reserve is either stored in the bank’s vault or is sent to the RBI. Banks do not get any interest on the money that is with the RBI under the CRR requirements.
Primary purposes of the Cash Reserve Ratio
- Since a part of the bank’s deposits is with the Reserve Bank of India, it ensures the security of the amount. It makes it readily available when customers want their deposits back.
- Also, CRR helps in keeping inflation under control.
- At the time of high inflation in the economy, RBI increases the CRR, so that banks need to keep more money in reserves so that they have less money to lend further.
Subject : International Organisations
Context : India and South Africa to make it’s last ditch attempt for TRIPS waiver for COVID Vaccines.
Council for Trade-Related Aspects of Intellectual Property Rights (TRIPS Council)
- It monitors implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (the TRIPS Agreement).
- It is open to all WTO members and observers.
- It provides a forum in which WTO Members can consult on intellectual property matters, and carries out the specific responsibilities assigned to the Council in the TRIPS Agreement.
- The TRIPS Agreement:
- sets the minimum standards of protection for copyrights and related rights, trademarks, geographical indications (GIs), industrial designs, patents, integrated circuit layout designs, and undisclosed information.
- establishes minimum standards for the enforcement of intellectual property rights (IPRs) through civil actions for infringement, actions at the border,
- and at least in regard to copyright piracy and trademark counterfeiting, in criminal actions.
Subject : History
- Abdul Ghaffar Khan (1890-1988), the foremost 20th-century leader of the Pashtuns ( a Muslim ethnic group of Pakistan and Afghanistan) was a follower of Mahatma Gandhi and was called the “Frontier Gandhi”.
- Ghaffar Khan met Gandhi and entered politics in 1919 during agitation over the Rowlatt Acts, which allowed the confinement of political dissidents without trial.
- In 1920 he joined the Khilafat movement, which sought to strengthen the spiritual ties of Indian Muslims to the Turkish sultan
- In 1921 he was elected president of a district Khilafat committee in his native North-West Frontier Province.
- Soon after attending an Indian National Congress (Congress Party) gathering in 1929, Ghaffar Khan founded the Red Shirt movement (Khudai Khitmatgar) among the Pashtuns.
- In 1987 he was awarded the Bharat Ratna Prize, the highest Indian honour that can be given to civilians. He was the first non-Indian to receive this honour.
- Another non-Indian to receive Bharat Ratna is Nelson Mandela (1990).
- Mother Teresa, in 1980, became the first and only naturalised citizen to be awarded the Bharat Ratna.
Additional Information : Khudai Khidmatgar Movement
- The Khudai Khidmatgar was a non-violent movement against British occupation of the Indian subcontinent led by Abdul Ghaffar Khan, a Pashtun freedom fighter, in the North-West Frontier Province.
- Over time, the movement turned political, leading to the British taking notice of its growing prominence in the region.
- Following the arrest of Khan and other leaders in 1929, the movement formally joined the Indian National Congress after they failed to receive support from the All-India Muslim League.
- Members of the Khudai Khidmatgar were organised and the men stood out because of the bright red shirts they wore as uniforms, while the women wore black garments.
- The Khudai Khidtmatgar opposed Partition, a stance that many interpreted as the movement not being in favour of the creation of the independent nation of Pakistan.
Subject : Polity
Context : Bengal Chief Minister Mamata Banerjee on Friday announced a number of schemes and sops, including a hike in the annual aid of farmers. She presented a vote-on-account for Rs 2.99 lakh crore in the Assembly.
Vote on Account
- A vote on account is the process by which an incumbent government obtains votes from Legislature to draw money from the Consolidated Fund to meet its expenses until the elections are done.
- In the run-up to every general election, Legislature votes to sanction the withdrawal of money from this fund to meet regular government expenses such as payment of salaries and interest.
How vote on accounts differs from the usual budget?
- Budget is nothing but a projected income and expenditure statement from the Central government for the coming year.
- Usually, the Budget has to be approved by Legislature before the commencement of the new financial year.
- Over the years though, Indian Budgets have become major events, doubling up as major policy statements of the government.
- But in the years where assembly elections are due, it would be improper for the outgoing government to impose policy changes or budgetary constraints on its successor who may or may not accept them.
- However, it is still necessary to keep enough money at its disposal to allow it to run the administration, requiring a vote on account.
How vote on account works?
- Vote-on-account is a temporary measure, it does need the approval of Legislature and it is usually passed without much discussion.
- It is usually valid for two months until the new government presents a full Budget.
- Ministries and departments can utilize the funds available for non-Plan expenditure which includes payments of salary to government employees, loan interest payments, subsidies, pension payments, based on the vote on account.
- The vote on account typically does not seek funds for major projects or new initiatives, this usually awaits the presentation of the full Budget.
- The new government elected may have different ideas in mind for the allocation of resources.
- Therefore, the incumbent government usually restrains itself from making any new financial commitments.
Subject : Economy
Context : Delhi government decided to reduce circle rates in the capital by 20% for residential, commercial, industrial and other properties across all categories for the next six months.
- Circle rate is the minimum rate for Government valuation of a plot, independent house, or flat in a particular area or locality.
- The circle rates are decided by the State Revenue Ministry.
- The circle rates for sale and purchase of properties in a particular area are finalized considering the available infrastructure and other parameters.
The significance of Circle Rates is as follows:
- Higher circle rates means higher revenue for Government on property transactions
- Higher circle rates means lesser problems in raising higher home loans, as banks or mortgagers typically use circle rates as a gauge of the property prices in almost all places.
Subject : Economy
Context : The government will roll out on April 1 a proposed production-linked incentive (PLI) scheme for white goods, under which eligible investors in air-conditioners and LED lights will be granted incentives worth Rs 6,238 crore over five years.
- White goods are large home appliances such as stoves ,refrigerators, freezers, washing machines, tumble driers, dishwashers, and air conditioners.
- They are large electrical goods for the house which were traditionally available only in white.
- Even though you can purchase them today in a wide range of different colors, they continue being called white goods.
- Major appliances – consumer durables made of enamel-coated sheet steel – are the same as white goods.
- The term may also refer to white fabrics, especially linen or cotton – articles such as curtains, towels, or sheets that historically used to be made of white cloth.
- Brown Goods : Brown goods are relatively light electronic consumer durables such as computers, digital media players, TVs and radios.
Subject : Governance
Context : An expert body under India’s apex drug regulator has recommended against granting approval to Pfizer’s Covid vaccine under emergency circumstances, prompting the American drug giant to withdraw its request.
Emergency Use Approval
- There is nothing such as emergency use approval in Indian rules, however the 2019 rules provide for “Accelerated Approval Process” in several situations that would include the one like the current pandemic.
- In such situations, there is a provision for granting approval to a drug that is still in clinical trials provided the product is of meaningful therapeutic benefit.
- Accelerated approval may also be granted to a new drug if it is intended for the treatment of a serious, or life-threatening condition, or disease of special relevance to the country, and addresses unmet medical needs.
- A new drug, or a vaccine, can be considered for approval if remarkable effectiveness is reported even from phase-II trials.
- In such cases, additional post licensure studies may be required.
- The approval granted to drugs or vaccines that are still in clinical trials is temporary, and valid only for one year.
Pfizer Vaccine :
- BNT162b2 is a COVID-19 vaccine candidate developed by BioNTech and Pfizer and given by intramuscular injection.
- It is an RNA vaccine composed of nucleoside-modified mRNA encoding a mutated form of the spike protein of SARS-CoV-2, and is encapsulated in lipid nanoparticles.
Subject : Environment
Context : Sunderban’s wild honey hunters eye GI tag.
Sundarbans Mangrove Forest
- The Sundarbans mangrove forest, one of the largest such forests in the world, lies across India and Bangladesh on the delta of the Ganges, Brahmaputra and Meghna rivers on the Bay of Bengal.
- It is adjacent to the border of India’s Sundarbans World Heritage site inscribed in 1987.
- The site is intersected by a complex network of tidal waterways, mudflats and small islands of salt-tolerant mangrove forests, and presents an excellent example of ongoing ecological processes.
- The area is known for its wide range of fauna, including 260 bird species, the Bengal tiger and other threatened species such as the estuarine crocodile and the Indian python.
- It is home to many rare and globally threatened wildlife species such as the estuarine crocodile, Royal Bengal Tiger, Water monitor lizard, Gangetic dolphin, and olive ridley turtles.
Geographical Indication (GI)
- It is an insignia on products having a unique geographical origin and evolution over centuries with regard to its special quality or reputed attributes.
- It is a mark of authenticity and ensures that registered authorized users or at least those residing inside the geographic territory are allowed to use the popular product names.
- GI tag in India is governed by Geographical Indications of Goods (Registration & Protection) Act, 1999. It is issued by the Geographical Indications Registry.
Benefits of GI Tag
- It provides legal protection to Indian Geographical Indications thus preventing unauthorized use of the registered GIs by others.
- It promotes economic prosperity of producers of goods produced in a geographical territory.
- The GI protection in India leads to recognition of the product in other countries thus boosting exports.