17 February 2024 CNA
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TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related INTERNATIONAL RELATIONS 1. Use Chabahar port, India tells Central Asian countries C. GS 3 Related INTERNAL SECURITY 1. Myanmar's new law may trigger a mass exodus ECONOMY 1. ED probe finds no FEMA violations in Paytm case 2. RBI must probe loan-to-value norms: gold loan firms D. GS 4 Related E. Editorials INTERNATIONAL RELATIONS 1. A chance to stop the laundry cycle of Pakistan’s elections GOVERNANCE 1. The clear message in the Court’s ‘no’ to electoral bonds F. Prelims Facts 1. Torpedoes, refueller aircraft in new deals cleared by DAC G. Tidbits H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
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B. GS 2 Related
Category: INTERNATIONAL RELATIONS
1. Use Chabahar port, India tells Central Asian countries
Syllabus: Relations between India and neighbouring countries. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s Interests
Mains: India’s foreign policy & India and its neighbourhood relations.
Context: India urges Central Asian countries to utilize the Chabahar port in Iran for enhanced connectivity and trade, emphasizing the importance of an inclusive government in Afghanistan amidst Taliban rule.
Chabahar Port Utilization:
- India encourages Central Asian nations to utilize the Chabahar port and Shahid Beheshti terminal for maritime trade with India and other global partners.
Regional Dialogue in Bishkek:
- India’s Deputy National Security Adviser advocates for an inclusive government in Afghanistan during the sixth Regional Dialogue of Secretaries of Security Councils/National Security Advisers on Afghanistan in Bishkek.
India’s Stance on Taliban:
- India has not recognized the Taliban government in Afghanistan, focusing on humanitarian assistance, combating terrorism and drug trafficking, and preserving the rights of women, children, and minorities.
Diplomatic Engagement:
- Recent diplomatic engagements include India’s participation in discussions in Kabul with stakeholders, despite not recognizing the Taliban government.
Conclusion:
- India emphasizes the need for an inclusive government in Afghanistan and calls for utilizing the Chabahar port to enhance connectivity and trade with Central Asian countries. Despite not recognizing the Taliban government, India remains engaged in regional dialogue to address humanitarian concerns and combat terrorism and drug trafficking.
C. GS 3 Related
Category: INTERNAL SECURITY
1. Myanmar’s new law may trigger a mass exodus
Syllabus: Role of external state and non-state actors in creating challenges to internal security and Security challenges and their management in border areas; linkages of organized crime with terrorism.
Mains: Internal Security, Myanmar – India relations
Context: Myanmar’s new conscription law mandates all male citizens aged 18 to 35 to join the armed forces amidst countrywide insurgency, prompting fears of a mass exodus to neighbouring countries.
Conscription Announcement:
Myanmar’s recent conscription law requires all male citizens aged 18 to 35 to join the armed forces, citing the need to address countrywide insurgency.
Internal Situation and Refugee Exodus:
Sources from Myanmar’s democratic opposition paint a grim picture of internal strife, with concerns that desperate military rulers may intensify efforts to reclaim lost territories. A trickle of soldiers has sought refuge in Bangladesh and India, prompting diplomatic talks for their return.
Operational Constraints:
Myanmar’s attempts to retrieve soldiers from neighbouring territories face logistical challenges, indicating operational constraints for the junta.
How does it impact India?
- Border Security: Instability in Myanmar poses border security challenges for India.
- Humanitarian Response: India may need to provide humanitarian aid to refugees fleeing Myanmar.
- Bilateral Relations: India’s response could impact diplomatic ties with Myanmar.
- Regional Stability: Myanmar’s instability could affect regional stability in Southeast Asia.
- Conflict Resolution: India may need to engage in peace-building efforts in Myanmar to address the crisis.
Also read: India – Myanmar Relations
| Recently, India suspended the Free Movement Regime with Myanmar.
Free Regime Movement: The Free Movement Regime (FMR) is a unique agreement which allows visa-free movement for individuals belonging to hill tribes, who are citizens of either India or Myanmar and reside within a 16 km radius on either side of the border. |
Conclusion and Way Forward:
The conscription law in Myanmar raises concerns of exacerbating internal strife and triggering a refugee crisis. Diplomatic efforts between Myanmar, India, and Bangladesh must prioritize resolving the root causes of conflict to prevent further instability and displacement. Regional cooperation and humanitarian assistance are crucial for addressing the potential mass exodus and promoting stability in the region.
Category: ECONOMY
1. ED probe finds no FEMA violations in Paytm case
Syllabus: Challenges to internal security through communication networks, the role of media and social networking sites in internal security challenges, basics of cyber security; money laundering and its prevention.
Mains: Money Laundering
Context: The Enforcement Directorate’s inquiry into transactions involving Paytm Payments Bank Limited (PPBL) centres on potential violations under FEMA and PMLA, alongside the RBI’s circular issued on January 31, restricting PPBL’s operations due to reported non-compliances and supervisory concerns.
ED Inquiry Outcome:
- The Enforcement Directorate (ED) found no violations under the Foreign Exchange Management Act (FEMA) during its inquiry into Paytm Payments Bank Limited (PPBL) transactions.
RBI Circular:
- On January 31, the RBI issued a circular restricting PPBL from further deposits, top-ups, or credit transactions into customer accounts, wallets, FASTags, and National Common Mobility Cards (NCMC) after February 29, now extended to March 15.
Audit Findings:
- The RBI’s action was based on reports of persistent non-compliance and supervisory concerns in PPBL, as disclosed in external auditors’ reports and comprehensive system audit findings.
ED Investigation Scope:
- The ED scrutinized financial transactions under the scanner, focusing on potential violations of FEMA and the Prevention of Money Laundering Act (PMLA). However, as no scheduled offences under PMLA were found, a money laundering probe was not pursued.
Compliance and RBI Authority:
The ED examined over 50 lakh wallets or accounts, mostly with small deposits, finding no contraventions of foreign exchange rules. Other alleged violations, such as Know Your Customer (KYC) compliance, fall under the RBI’s jurisdiction for appropriate action.
2. RBI must probe loan-to-value norms: gold loan firms
Syllabus: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth, Infrastructure: Energy, Ports, Roads, Airports, Railways etc and Investment models.
Mains: Reserve Bank of India and its regulatory mechanisms.
Context:
- The Association of Gold Loan Companies has urged the Reserve Bank of India (RBI) to investigate violations by certain bank branches regarding the loan-to-value (LTV) norms for gold loans, particularly after the temporary relaxation period ended in March 2021.
Violation of LTV Norms:
- Some banks, both public and private sectors, are accused of violating the 75% LTV norm for gold loans, which is uniform across banks and non-banking finance companies (NBFCs).
RBI’s Relaxation and Concerns:
- The RBI temporarily raised the permissible LTV norm for gold loans from 75% to 90% in August 2020 to mitigate the impact of COVID-19. However, concerns have arisen regarding certain bank branches lending beyond the stipulated limits.
Focus on Agriculture Gold Loans:
- Banks are increasingly focusing on agriculture gold loans due to priority sector lending classification benefits and easier recovery in case of default. Meanwhile, growth in gold loans in the non-agriculture segment remains steady.
Industry Growth and Outlook:
- Gold loan finance witnessed a Compound Annual Growth Rate (CAGR) of 15% between fiscal years 2018 and 2022, driven by stable gold prices and increased demand during the pandemic. However, credit growth moderated in fiscal year 2023 before recovering in fiscal year 2024.
Conclusion and Way Forward:
- The request to the RBI highlights concerns regarding adherence to LTV norms in the gold loan sector. Regulatory oversight is crucial to ensure compliance and maintain financial stability. Additionally, industry stakeholders must collaborate to address issues such as the proper classification of loans and adherence to regulatory guidelines.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
Category: INTERNATIONAL RELATIONS
1. A chance to stop the laundry cycle of Pakistan’s elections
Syllabus: GS-2, Relations between India and neighbouring countries. Bilateral, regional and global groupings and agreements involving India and/or affecting India’s Interests
Mains: India’s foreign policy & elections globally
Context: Recent elections in Pakistan reveal the nation’s enduring political instability, marked by military interference and power shifts among major parties. The incoming government faces challenges in implementing economic reforms, underscoring the importance of political collaboration to counter authoritarian influence.
Endless Cycles of Political Instability:
- Historically, Pakistan has witnessed a repetitive pattern of military-backed governments followed by dismissals, fractures, and subsequent elections.
- None of the country’s Prime Ministers have completed a full term in office.
Rotation of Power Among Major Parties:
- Pakistan’s major political parties, including PPP, PML(N), and PTI, have all been favoured by the military at different times.
- Leaders of these parties have faced imprisonment or exile when they fell out of favour.
Interference of Judiciary and Military:
- The judiciary has played a role in dismissing Prime Ministers through conveniently timed judgments.
- Military chiefs have had significant influence over the government and judiciary.
Recent Political Developments:
- Imran Khan’s dismissal and subsequent legal troubles, including imprisonment, highlight ongoing political instability.
- The rise of Independents in elections and subsequent coalition negotiations further complicate the political landscape.
Challenges for the Next Government:
- Economic reforms and adherence to IMF mandates pose significant challenges for the incoming government.
- Collaboration among political parties is crucial for navigating economic reforms and addressing structural issues.
Lessons for Hybrid Democracies:
- Voters’ actions demonstrate that predictable outcomes cannot be guaranteed in hybrid democracies.
- The poor performance of religious and extremist parties highlights changing political dynamics.
- Democratically-minded leaders globally must unite against authoritarian forces to ensure political stability.
Conclusion
- Pakistan’s political landscape remains fraught with challenges stemming from historical patterns of military intervention and power struggles among major parties.
- The upcoming government must navigate economic reforms amidst this instability, emphasizing the necessity for political cooperation to counter authoritarian tendencies and steer the nation towards a more stable and democratic future.
Nut Graf: Pakistan’s political instability, marked by military intervention and power shifts among major parties, presents an opportunity for change in the recent elections. Collaboration among leaders is essential to steer the nation towards stability and democracy.
Category: GOVERNANCE
1. The clear message in the Court’s ‘no’ to electoral bonds
Syllabus: GS-2, Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.
Mains: SC judgment on Electoral bond scheme
Context:
- The Supreme Court of India’s landmark judgment on February 15, 2024, struck down the electoral bonds scheme, emphasizing the importance of transparency in democracy.
- The scheme allowed for anonymous funding of political parties, raising concerns about undue influence and lack of accountability in campaign financing.
Lack of Transparency in Campaign Funding:
- The electoral bonds scheme lacked transparency, preventing voters from knowing who funded political parties and the amounts involved.
- Transparency in campaign funding is a fundamental aspect of democracy, emphasized by the Supreme Court’s decision.
Legal Issues and Concerns:
- The scheme removed funding limits for corporate houses, potentially allowing for undue influence on the government.
- Electoral bonds enabled companies, including loss-making ones, to donate to political parties, raising concerns about the formation of shell companies for fund channelling.
Impact on Democracy and Governance:
- The judgment prevents the potential abuse of political power through crony capitalism, where laws and policies are influenced by big money.
- The amendment to the Reserve Bank of India (RBI) Act, allowing scheduled banks to issue electoral bonds, was also struck down by the Court.
Challenges to Democratic Principles:
- The introduction of electoral bonds raised concerns about the legislative process, highlighting the lack of public consultation and parliamentary debate.
- The judgment reaffirms fundamental rights enshrined in the Indian Constitution, including the right to information (Article 19) and the right to equality (Article 14).
Essence of the Supreme Court’s Judgment:
- The electoral bonds scheme has been invalidated, along with related amendments to the Representation of the People Act, Finance Act 2017, and Companies Act 2013.
- The State Bank of India (SBI) is directed to cease issuing electoral bonds, and details of all bonds issued must be submitted to the Election Commission of India (ECI) for public disclosure.
Conclusion:
- The Supreme Court’s decision underscores the importance of upholding democratic principles and transparency in governance.
- The judgment represents a victory for democracy, with constitutional bodies like the ECI and the judiciary acting in the interest of citizens’ rights and democratic integrity.
Also read: Important Supreme Court Judgements
Nut Graf: The Supreme Court’s invalidation of the electoral bonds scheme underscores the necessity for transparency in political financing, reinforcing democratic principles and constitutional rights. This decision marks a pivotal moment in safeguarding electoral integrity and promoting accountability within governance.
F. Prelims Facts
1. Torpedoes, refueller aircraft in new deals cleared by DAC
Context: The Defence Acquisition Council (DAC) has approved Acceptance of Necessity (AoN) for several procurement proposals, including long-pending deals for defence equipment worth ₹84,560 crore.
Key Procurement Proposals:
- AoN granted heavyweight torpedoes (HWT) for the Navy’s Scorpene-class submarines and flight refueller aircraft (FRA) for the Indian Air Force (IAF), among others.
Enhanced Capabilities:
- Procurement includes medium-range maritime reconnaissance and multi-mission maritime aircraft to strengthen the surveillance and interception capabilities of the Navy and Coast Guard.
- Active-towed array sonar and HWT acquisition aim to bolster naval ships’ capabilities against adversary submarines.
Addressing Delays and Modernization:
- Deals for HWTs, FRAs, and towed-array sonars, which faced delays due to corruption allegations, are being restarted to modernize defence capabilities.
- Amendments in Defence Acquisition Procedure (DAP) 2020 approved for benchmarking, cost computation, and procurement quantity.
Significance:
- Procurement of new equipment aims to enhance operational capabilities and readiness of the armed forces, addressing gaps in defence preparedness.
- The adoption of modern technologies and equipment aligns with India’s strategic objectives and national security imperatives.
Conclusion:
- The DAC’s approval of several procurement proposals signifies the government’s commitment to modernize and strengthen India’s defence capabilities.
- Addressing delays and streamlining acquisition processes are crucial steps in ensuring timely procurement of essential equipment for the armed forces, enhancing national security preparedness in line with evolving threats and challenges.
G. Tidbits
Nothing here for today!!!
H. UPSC Prelims Practice Questions
Q1. Consider the following statements with regard to Cartosat-2 series:
- Cartosat-2 is a series of remote-sensing satellites.
- Since 2005, ISRO has launched Cartosat-2 satellites that were primarily used for mapping purposes with image resolution capacities ranging from coarse, medium, and high resolution.
- Seventeen years after its launch, Cartosat-2, the first of ISRO’s second generation of high-resolution imaging satellites primarily used in urban planning has been deorbited.
How many of the following statements is/are correct?
- Any 1
- Any 2
- All 3
- None of the above
CHECK ANSWERS:-
Answer: c
Explanation:
- Statement 1 is correct: Cartosat-2 is a series of remote-sensing satellites, launched by PSLV-C40 for earth observation.
- Statement 2 is correct: Since 2005, ISRO has launched Cartosat-2 satellites that were primarily used for mapping purposes with image resolution capacities ranging from coarse, medium, and high resolution.
- Statement 3 is correct: The imagery sent by the satellite will be useful for cartographic applications, urban and rural applications, coastal land use and regulation, utility management like road network monitoring, water distribution, creation of land use maps, change detection to bring out geographical and manmade features and various other Land Information System (LIS) as well as Geographical Information System (GIS) applications.
Q2. Consider the following statements with regard to National Youth Parliament Festival (NYPF):
- NYPF is based on the idea given by the Prime Minister in his Mann Ki Baat Address in 2017.
- The 1st edition of NYPF was organised in 2018, with the theme “Be the Voice of New India and Find Solutions and Contribute to Policy ”.
- Only government-run educational institutions of the country are eligible to participate in this programme.
- To hear the voice of youth in this age bracket of 18-25 who are allowed to vote but cannot contest in elections.
How many of these statements is/are correct?
- Any one
- Any two
- Any three
- All four
CHECK ANSWERS:-
Answer: b
Explanation:
- Statement 1 is correct: The National Youth Parliament Festival is based on the idea given by the Prime Minister in his Mann Ki Baat Address on 31st December 2017.
- Statement 2 is incorrect: The 1st edition of NYPF 2019 was organised with the theme “Be the Voice of New India and Find Solutions and Contribute to Policy” with the participation of 88,000 youth in physical mode.
- Statement 3 is incorrect: All recognized educational institutions of the country are eligible to participate in the ‘Portal-Based Youth Parliament Programme’.
- Statement 4 is correct: Youth in the age bracket of 18-25 years are invited to participate in the District Youth Parliaments. This is done to hear the voice of youth in this age bracket who are allowed to vote but cannot contest in elections.
Q3. Consider the following statements with regard to Swaminathan Commission:
- On November 18, 2004, the Ministry of Agriculture constituted a National Commission on Farmers (NCF) under Prof Swaminathan.
- The Swaminathan Commission recommended fixing of MSP based on C2 (actual cost of production) plus 50 per cent, as demanded by the protesting farmers.
- Swaminathan Commission also recommended a legal guarantee for MSP.
How many of these statements is/are correct?
- Any 1
- Any 2
- All 3
- None of the above
CHECK ANSWERS:-
Answer: a
Explanation:
- Statement 1 is correct: The National Commission on Farmers (NCF) was constituted on November 18, 2004, under the chairmanship of Professor M.S. Swaminathan. The Terms of Reference reflected the priorities listed in the Common Minimum Programme.
- Statement 2 is incorrect: The Swaminathan Commission did not recommend the fixing of MSP based on C2 (actual cost of production) plus 50 per cent, as demanded by the protesting farmers. In its second report, the NCF made just two recommendations relating to MSP.
- Statement 3 is incorrect: The Swaminathan Commission did not recommend a legal guarantee for MSP.
Q4. Consider the following statements with regard to National Commission for Scheduled Castes:
- Initially, the Constitution provided for the appointment of a Special Officer under Article 338.
- The NCSC comprises a Chairperson, a Vice-Chairperson, and three additional Members.
- Till 2018, the commission was also required to discharge similar functions with regard to the other backward classes (OBCs).
How many of these statements is/are correct?
- Any 1
- Any 2
- All 3
- None of the above
CHECK ANSWERS:-
Answer: c
Explanation:
- Statement 1 is correct: Originally, Article 338 of the Constitution provided for the appointment of a Special Officer for Scheduled Castes (SCs) and Scheduled Tribes (STs) to investigate all matters relating to the constitutional safeguards for the SCs and STs and to report to the President on their working.
- Statement 2 is correct: NCSC consists of a chairperson, a vice-chairperson and three other members. They are appointed by the President by warrant under his hand and seal. Their conditions of service and tenure of office are also determined by the President.
- Statement 3 is correct: Until 2018, the NCSC was responsible for discharging similar functions for the other backward classes (OBCs) as well. However, the 102nd Amendment Act of 2018 relieved this responsibility from the NCSC and provided constitutional status to the National Commission for Backward Classes (NCBC).
Q5. Which one of the following countries of South-West Asia does not open out to the Mediterranean Sea? [PYQ 2015]
- Syria
- Jordan
- Lebanon
- Israel
CHECK ANSWERS:-
Answer: b
Explanation:
The Mediterranean Sea is bordered by 21 countries. They are Albania, Algeria, Bosnia and Herzegovina, Croatia, Cyprus, Egypt, France, Greece, Israel, Italy, Lebanon, Libya, Malta, Monaco, Montenegro, Morocco, Slovenia, Spain, Syria, Tunisia, and Turkey. Jordan does not border the Mediterranean Sea.
I. UPSC Mains Practice Questions
- Discuss the pros and cons of the Electoral Bonds Scheme. Critically examine. (15 marks, 250 words) [GS-2, Polity & Governance]
- The internal political journey of India and Pakistan in the last 75 years is as different as chalk and cheese. Comment. (10 marks, 150 words) [GS-2, International Relations]
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