03 February 2024 CNA
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TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related INTERNATIONAL RELATIONS 1. India to ‘replace’ military personnel in the Maldives 2. As Myanmar junta marks three years, resistance movement gathers steam 3. As Ariha turns three, mother Dhara Shah appeals to PM to intervene C. GS 3 Related ECONOMY 1. KYC issues, money laundering concerns said to have led to RBI order on Paytm’s bank D. GS 4 Related E. Editorials ECONOMY 1. Population priorities: On Interim Budget statement and the Census 2. A rising tide lifts all boats F. Prelims Facts 1. Rooftop Solar Scheme G. Tidbits H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Category: INTERNATIONAL RELATIONS
1. India to ‘replace’ military personnel in the Maldives
Syllabus: Effect of policies and politics of developed and developing countries on India’s interests.
Mains: India – Maldives relations
Context: Recent diplomatic developments reveal that India is set to replace its military personnel in the Maldives in two phases by May 10, as per the announcement by the Government of Maldives after the second meeting of the high-level core group between the two nations. This decision follows Male’s demand to end the presence of Indian military personnel in the archipelago, further complicated by social media controversies involving remarks disrespectful to Prime Minister Narendra Modi made by three ministers of the Mohamed Muizzu government.
Issues
- Maldivian Demand: The central issue revolves around the demand from the Maldivian government to terminate the presence of Indian military personnel in the country.
- Social Media Controversy: Controversial remarks by three Maldivian ministers have added complexity to the situation, posing challenges to diplomatic relations.
- Personnel Replacement Ambiguity: The statement lacks clarity on whether the military personnel will be replaced by civilian operators or another batch of armed forces personnel.
Significance
- Diplomatic Resolution: The decision for phased personnel replacement signifies diplomatic efforts to address the Maldivian government’s concerns and maintain cooperative relations.
- Humanitarian and Medevac Services: The mutual agreement includes the continued operation of Indian aviation platforms providing humanitarian and medevac services to the Maldives, highlighting the importance of joint efforts in these areas.
- Financial Allocations: The revision in the Indian Budget estimates for 2023-’24, granting the Maldives a larger financial allocation of ₹770.90 crore, indicates India’s commitment to strengthening ties and supporting the Maldivian economy.
Solutions
- Transparent Communication: Enhance transparent communication to avoid misunderstandings and ensure a smoother replacement process, addressing the concerns of both nations.
- Diplomatic Dialogue: Continue high-level diplomatic dialogue to build trust and strengthen bilateral cooperation, particularly in defense and security.
- Addressing Social Media Impact: Mitigate the impact of controversial social media remarks through diplomatic channels, emphasizing the need for respectful communication.
Also read: India – Maldives relations
Nut Graf: The phased replacement of Indian military personnel in the Maldives reflects a diplomatic resolution to address concerns and maintain cooperative relations. The financial commitment in the revised budget signifies India’s ongoing support for the Maldivian economy. Ongoing dialogue and transparent communication are crucial for a successful transition and the preservation of strong bilateral ties.
2. As Myanmar junta marks three years, resistance movement gathers steam
Syllabus: Effect of policies and politics of developed and developing countries on India’s interests.
Prelims: Free Movement Regime (FMR)
Mains: Issues in the India-Myanmar border
Context: The plight of Myanmar refugees seeking shelter in India, particularly in Mizoram and Manipur, takes a critical turn as the Indian government decides to fence the 1,643 km-long India-Myanmar border and end the Free Movement Regime (FMR). As geopolitical dynamics shift, those fleeing violence in Myanmar now face an uncertain future, raising concerns about cultural ties, humanitarian issues, and India’s stance.
Issues
- Civil Unrest in Myanmar: The takeover by Myanmar’s military in February 2021 has led to widespread violence, displacing citizens who seek refuge in neighbouring countries, particularly India.
- Cultural Ties: The Chins and Mizos, sharing cultural roots, have historically coexisted along the India-Myanmar border. However, the decision to fence the border jeopardizes the free movement regime and familial relationships.
- Humanitarian Concerns: The refugees, displaced due to the civil war, face challenges in adapting to a new life and are concerned about the uncertain future, compounded by geopolitical decisions affecting border dynamics.
- India’s Border Policy: The decision to fence the border and end the FMR raises questions about India’s refugee policy, humanitarian considerations, and the impact on bilateral relations with Myanmar.
Significance
- Cultural Disruption: The Chins and Mizos, with a shared ethnicity, have cultural and familial ties that span the India-Myanmar border. The fencing decision threatens to disrupt these ties, impacting social interactions and relationships.
- Humanitarian Crisis: The refugees, including orphans and individuals fleeing violence, face challenges in resettling and worry about India’s changing border policies affecting their ability to seek refuge.
- Bilateral Relations: India’s strategic ties with Myanmar’s military and conflicting views within India, particularly between Manipur and Mizoram, highlight the complexity of border policies and their impact on bilateral relations.
Solutions
- Diplomatic Engagement: India should engage diplomatically with Myanmar to address the refugee crisis, fostering cooperation on humanitarian grounds and ensuring the well-being of displaced individuals.
- Humanitarian Assistance: Providing continued humanitarian assistance, including healthcare, education, and basic amenities, is crucial for the well-being of refugees in Mizoram and Manipur.
- Balanced Border Policy: Striking a balance between national security concerns and humanitarian considerations is essential. Fencing decisions should account for the unique cultural and familial ties between border communities.
Also read: India – Myanmar Relations
Nut Graf: The situation along the India-Myanmar border, especially for Myanmar refugees seeking shelter in Mizoram and Manipur, underscores the challenges posed by geopolitical decisions. Striking a balance between national security imperatives and humanitarian concerns is crucial.
3. As Ariha turns three, mother Dhara Shah appeals to PM to intervene
Syllabus: Effect of policies and politics of developed and developing countries on India’s interests.
Mains: Issues of the Indian Diaspora
Context:
- The case of Ariha Shah, the Indian child placed in parental custody by German Youth Services in 2021, has taken a distressing turn as she turns three years old. Ariha’s mother, Dhara Shah, appealed to Prime Minister Narendra Modi, alleging that German authorities are neglecting Ariha’s cultural upbringing, and despite visitations, she speaks only German and lacks exposure to Indian languages or culture.
Issues
- Cultural Disconnect: Ariha, now three years old, has been under German Youth Services since 2021, and her mother claims that efforts to introduce her to Indian culture have been minimal, leading to a cultural disconnect.
- Language Barrier: Despite the Ministry of External Affairs’ request for cultural exposure, Ariha speaks only German and is not being taught English or any other Indian language.
- Guardian’s Influence: Ariha now refers to her guardian as her mother, impacting her relationship with her biological parents and cultural identity.
- Limited Access: The parents face challenges in obtaining regular access, with Ariha spending significant time under German custody, affecting family bonds.
Significance
- Parental Plea: The emotional plea from Ariha’s mother highlights the distressing situation and the urgency to address cultural and familial concerns.
- Influence on Cultural Identity: The early years are crucial for cultural development, and a lack of exposure to Indian languages and customs could impact Ariha’s sense of identity.
- Legal Battles: The Family Court in Berlin granted custody to Jugendamt (German Youth Office) in June 2023, based on abuse charges disputed by Ariha’s parents. The ongoing legal battle adds complexity to the case.
Solutions
- Intensified Diplomatic Efforts: The Ministry of External Affairs should intensify efforts to ensure Ariha’s cultural exposure, including language education, in line with the parents’ and cultural requests.
- Regular Consular Access: Consular access and periodic visitations should be facilitated to maintain family bonds and monitor Ariha’s well-being.
- Legal Support: The Indian government should provide legal support to expedite the appeals process, ensuring a fair consideration of the Shahs’ plea for custody.
Nut Graf: Ariha’s third birthday marks another year of separation from her parents, prompting an emotional plea for intervention from Prime Minister Modi. The case underscores the need for immediate and intensified efforts to safeguard Ariha’s cultural identity and familial bonds, emphasizing the importance of diplomatic, legal, and emotional support in resolving this sensitive and challenging situation.
C. GS 3 Related
Category: ECONOMY
1. KYC issues, money laundering concerns said to have led to RBI order on Paytm’s bank
Syllabus: Economic Development in India
Prelims: RBI powers
Mains: KYC issues
Context: The Reserve Bank of India’s (RBI) recent directive to Paytm Payments Bank Ltd. (PPBL) to cease new business transactions and settle pipeline transactions by specific dates has been linked to significant irregularities in the bank’s compliance with Know Your Customer (KYC) norms. The revelation of missing KYC details, PAN validation failures, and potential money laundering concerns has raised alarm among regulators and stakeholders.
Issues
- Missing KYC Details: Supervisors and auditors discovered a large number of customers with missing KYC details, posing a serious risk to customer security and regulatory compliance.
- PAN Validation Failures: Lakhs of accounts faced PAN validation failures, with instances of a single PAN linked to multiple customers, indicating lapses in identity verification processes.
- Money Laundering Concerns: The bank was found facilitating transactions beyond regulatory limits in prepaid instruments with minimal KYC requirements, raising significant concerns related to money laundering.
- Use of Dormant Accounts: Unusually high numbers of dormant accounts were allegedly utilized as ‘mule accounts’ to facilitate transactions, adding another layer of regulatory concern.
- Non-Compliance with ‘Arm’s Length Policy’: Accusations point to the bank not adhering to the ‘arm’s length policy’ while dealing with Promoter Group Entities, resulting in co-mingling of financial and non-financial business in violation of licensing conditions and RBI directions.
- Operational Segregation Issues: Auditors found a lack of operational segregation, with the bank heavily relying on the IT infrastructure of One97 Communications Ltd. (OCL), the listed parent entity, leading to concerns about data privacy and sharing.
- False Compliance Details: Instances were reported where compliance details submitted by the bank were found to be false upon verification by RBI supervisors, indicating a breach of regulatory standards.
Way Forward
- Swift KYC Rectification: Initiate a comprehensive and expedited process to rectify missing KYC details, ensuring regulatory compliance and customer security.
- Enhanced PAN Validation Processes: Strengthen PAN validation processes to prevent failures and ensure accurate identity verification for all customers.
- Robust Anti-Money Laundering Measures: Implement stringent anti-money laundering measures to address concerns regarding transactions beyond regulatory limits.
- Operational Segregation: Establish clear operational segregation, reducing reliance on the IT infrastructure of OCL and ensuring independent and secure operations.
- Transparent Compliance Reporting: Enhance transparency in compliance reporting, avoiding false submissions and ensuring accuracy in regulatory disclosures.
Nut Graf: The regulatory concerns surrounding Paytm Payments Bank highlight the need for immediate corrective measures to address KYC and compliance issues. Stakeholders, particularly customers, demand assurance regarding the security of their financial transactions. Regulatory intervention and comprehensive reforms are imperative to restore trust, ensure compliance, and safeguard the integrity of the banking system.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
Category: ECONOMY
1. Population priorities: On Interim Budget statement and the Census
Syllabus: GS-3, Economic Development in India and Macroeconomics
Mains: Census in India
Context: In the Interim Budget speech, Finance Minister Nirmala Sitharaman highlighted the need to address challenges arising from fast population growth and demographic changes in India. Despite the delay in conducting the decennial Census, recent statistical reports, including the Sample Registration System and National Family Health Survey-5, provide insights into the shifting population dynamics. The focus on a high-powered committee signals a recognition of the urgency to tackle emerging issues.
Issues
- Postponement of Census: The government’s delay in conducting the decennial Census, a historic practice since 1881, raises concerns about the lack of direct evidence to support demographic policy decisions.
- Fertility Rate Decline: While India remains the most populous country, recent reports indicate a decline in the Total Fertility Rate (TFR) to 2 overall. Variability exists among states, with some like Bihar and Meghalaya exhibiting higher TFRs.
- Demographic Shift: India is experiencing a significant demographic shift with a rising life expectancy, posing both challenges and opportunities. The demographic dividend, characterized by a working-age population, necessitates effective job creation and social security measures.
Significance
- Demographic Dividend: The demographic dividend is meaningful when accompanied by sufficient job opportunities and social security, ensuring economic productivity and support for an ageing population.
- Challenges of Urbanization: Rapid urbanization and mechanization of work present challenges such as unemployment and the need for skilled employment opportunities.
- Role of the Committee: The proposed high-powered committee plays a pivotal role in addressing issues related to jobs, social security, and challenges arising from demographic shifts, offering an opportunity for proactive governance.
Solutions
- Comprehensive Census Implementation: Urgent implementation of the decennial Census is essential for accurate and comprehensive data, enabling evidence-based policymaking.
- Job Creation and Skill Development: Focus on creating jobs, especially in non-farm sectors, to harness the demographic dividend. Emphasis on skill development and vocational training can enhance productivity.
- Balanced Approach: The committee should adopt a balanced approach, avoiding distraction by religious and immigration-focused lenses. Prioritizing citizens’ welfare through pragmatic policies ensures the utilization of the demographic dividend.
Nut Graf: The challenges and opportunities arising from population dynamics in India require a strategic and comprehensive approach. The proposed high-powered committee must prioritize job creation, social security, and urbanization challenges over divisive narratives.
2. A rising tide lifts all boats
Syllabus: GS-3, Economic Development in India and Macroeconomics
Mains: Challenges and opportunities associated with rapid economic acceleration for India.
Context: India’s remarkable transformation from an underdeveloped nation to the fastest-growing economy globally. The Interim Budget embodies the buoyancy of India’s metrics and spirit, presenting immense opportunities for the nation’s future growth.
Issues
- Economic Transformation: India’s journey from underdeveloped to developing and now the fastest-growing economy brings forth the challenges and opportunities associated with rapid economic acceleration.
- Healthcare Priorities: The imperative need for preventive health measures is emphasized, especially through initiatives like promoting HPV vaccination to prevent cervical cancer. A call for incentivizing preventive health checks is put forward to alleviate the burden of diseases.
- Health Indicators and Budgetary Allocations: Despite remarkable strides in health indicators, the budgetary allocation for health has remained below 2%. Increasing this allocation to 5% is proposed to achieve better population health outcomes.
Significance
- Maternal and Child Health: The Interim Budget rightfully prioritizes maternal and child health care, recognizing the pivotal role it plays in women’s increased participation in the workforce.
- Innovation Revolution: The government’s focus on innovation as a key pillar is highlighted, with the creation of a ₹1 lakh crore corpus for interest-free loans to promote research and technology. The potential impact of technology integration in healthcare is emphasized.
- Medical Value Travel: The burgeoning trend of ‘medical value travel’ is acknowledged, with India becoming a global healthcare destination. The significance of enhancing connectivity for easy access to quality healthcare is emphasized.
Solutions
- Incentivizing Preventive Health Checks: Proposing government incentives for individuals undertaking preventive health checks to proactively manage and reduce the disease burden.
- Increased Budgetary Allocation for Health: Advocating for an increase in the budgetary allocation for health from less than 2% to 5% to further improve health outcomes.
- Technology Integration: Encouraging deeper collaborations in healthcare technology to overcome challenges like the doctor-patient ratio and reduce healthcare costs.
- Promoting Medical Value Travel: Emphasizing the potential benefits of medical value travel and advocating for improved connectivity to make quality healthcare more accessible to Indians.
Nut Graf: The importance of private sector involvement, hidden figures of rising private expenditure, increased consumption, and the collaborative efforts shaping India’s limitless potential is highlighted. Working together, India can continue its upward trajectory, realizing the promise of a bright and prosperous future.
F. Prelims Facts
Context: The Pradhan Mantri Suryoday Yojana, recently announced by Prime Minister Narendra Modi, aims to boost the adoption of household rooftop solar systems (h-RTS). Under this scheme, the Centre is expected to bear the entire cost of setting up such systems for households consuming less than 300 units of electricity a month. The initiative, if implemented, could potentially cost around ₹1 lakh crore.
Issues
- High Implementation Cost: The scheme’s ambitious goal to provide free electricity to one crore households, with a potential cost of ₹1 lakh crore, raises financial concerns and challenges in budget allocation.
- Transition from State-run to Union Government Companies: The shift from individual State-run power distribution companies to Union government companies for powering beneficiary households marks a significant departure from the existing approach.
- Low Awareness and Uptake: The slow adoption of rooftop solar systems in India is attributed to low awareness and lack of understanding about the installation process.
Significance
- Financial Inclusion: The scheme’s emphasis on households consuming less than 300 units per month aims to financially include a significant section of the population, providing them with up to 300 units of free electricity monthly.
- Role of PSUs: Public sector units (PSUs) like the National Thermal Power Corporation (NTPC) will play a crucial role in identifying eligible households, installing rooftop solar systems, and facilitating hassle-free installation.
- Subsidies and Loan Mechanism: The Centre’s subsidy covering 60% of installation costs, along with PSU-backed loans for the remaining amount, ensures a cost-effective and accessible implementation model for beneficiaries.
Solutions
- Awareness Campaigns: Conduct extensive awareness campaigns to educate households about the benefits of rooftop solar systems and the hassle-free installation process.
- Budgetary Allocations: Ensure adequate budgetary allocations for the scheme to meet the ambitious target of electrifying one crore households.
- Collaborative Approach: Establish collaborative special purpose vehicles (SPVs) with private companies to execute the program efficiently and involve stakeholders in the solar energy sector.
- Deadline and Timely Implementation: Set a reasonable deadline for the scheme’s implementation to ensure a swift and efficient expansion. Monitor progress to meet targets and overcome hurdles promptly.
G. Tidbits
Nothing here for today!!!
H. UPSC Prelims Practice Questions
Q1. Consider the following statements:
- INS Kalvari is an indigenously built submarine.
- It is the first conventional submarine to be inducted into the Indian Navy, post-induction of INS Sindhurashtra procured from Russia in the year 2000.
- SIMBEX is an annual naval bilateral exercise between India and Japan.
Which of these statement(s) is/are correct?
- 1 only
- 3 only
- 1 & 2
- All of the above
CHECK ANSWERS:-
Answer: c
Explanation: INS Kalvari is an indigenously built submarine. It is the first conventional submarine to be inducted into the Indian Navy, post-induction of INS Sindhurashtra, procured from Russia in the year 2000. SIMBEX is an annual naval bilateral exercise between India and Singapore.
Q2. Consider the following statements:
- Sachin Tendulkar was the first sportsperson to receive India’s highest civilian honour, the Bharat Ratna Award.
- The award was originally confined to arts, literature, science, and public services, as per the 1954 regulations. In December 2011, the rules were changed to include “any field of human endeavour”.
Which of these statement(s) is /are correct?
- 1 only
- 2 only
- 1 & 2
- None of the above
CHECK ANSWERS:-
Answer: c
Explanation: Sachin Tendulkar was the first sportsperson to receive India’s highest civilian honour, the Bharat Ratna Award. The award was originally confined to arts, literature, science, and public services, as per the 1954 regulations. In December 2011, the rules were changed to include “any field of human endeavour”.
Q3. Consider the following statements:
- UNICEF focuses on developing community-level services to achieve its larger goal of children’s welfare and development.
- The Nobel Peace Prize 1965 was awarded to the United Nations Children’s Fund (UNICEF).
Which of these statement(s) is /are correct?
- 1 only
- 2 only
- Both 1 & 2
- None of the above
CHECK ANSWERS:-
Answer: c
Explanation: UNICEF focuses on developing community-level services to achieve its larger goal of children’s welfare and development. The Nobel Peace Prize 1965 was awarded to the United Nations Children’s Fund (UNICEF).
Q4. The Eight Degree Channel separates which of the following?
- India from Sri Lanka
- Minicoy and Maldives
- Andaman and Nicobar Islands
- Indira Point from Indonesia
CHECK ANSWERS:-
Answer: b
Explanation: The Eight Degree Channel separates Minicoy from the Maldives.
Q5. The term “Intended Nationally Determined Contributions” is sometimes seen in the news in the context of?
- Pledges made by the European countries to rehabilitate refugees from the war-affected Middle East.
- Plan of action outlined by the countries of the world to combat climate change.
- Capital contributed by the member countries in the establishment of the Asian Infrastructure Investment Bank.
- Plan of actions outlined by the countries regarding Sustainable Developments Goals.
CHECK ANSWERS:-
Answer: b
Explanation: The term “Intended Nationally Determined Contributions” is related to the plan of action outlined by the countries of the world to combat climate change.
I. UPSC Mains Practice Questions
- The rapid growth of India depends on infrastructural development in all fields. Critically analyse. (15 marks, 250 words) [GS-3, Economy]
- India’s relationship with the Maldives is a symbiotic relationship. Comment. (15 marks, 250 words) [GS-2, International Relations]
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