CNA 09 June 2023:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related C. GS 3 Related ECONOMY 1. Requirement for limits on UPI transactions SCIENCE AND TECHNOLOGY 1. Impact of Chronic Stress on Human body D. GS 4 Related E. Editorials INFRASTRUCTURE 1. Railways safety ECONOMY 1. Production linked subsidy F. Prelims Facts 1. Atlantic Declaration G. Tidbits 1. Agni Prime 2. National Exit Test H. UPSC Prelims Practice Questions I. UPSC Mains Practice Questions
A. GS 1 Related
Nothing here for today!!!
B. GS 2 Related
Nothing here for today!!!
C. GS 3 Related
1. Requirement for limits on UPI transactions
Syllabus: Indian Economy & Issues Relating to Planning, Mobilization of Resources, Growth, Development & Employment
Mains: Various consequences of UPI implementation
Context: Daily limits by banks on UPI transactions.
Introduction:
- In order to cope with the growing popularity of the Unified Payments Interface (UPI), banks have implemented daily transaction limits that exceed the limits mandated by the National Payments Corporation of India (NPCI) in 2021.
- This measure aims to ensure the efficient operation of the popular payments interface amidst the escalating number of transactions.
- NPCI has also raised the value limits for specific categories with higher average transaction values, such as Capital Markets and Credit Card Bill payments.
- All participants in the ecosystem, including NPCI and regulators, regularly assess and modify transaction and value limits on the UPI as needed.
- This includes the recent increase in limits for IPOs, broking, mutual funds, loan repayment, and other transactions, with a focus on supporting future growth.
Key Details:
- Current Limits: Currently, users of the UPI can make up to 20 transactions or ₹1 lakh in a single day.
- Specific categories such as capital markets, collections, insurance, and inward remittances have a higher limit of ₹2 lacks.
- In December 2021, the limit for UPI-based (Application Supported by Blocked Amount) ASBA IPO and retail direct schemes was increased to ₹5 lacks per transaction.
- Banks and App Guidelines: Several banks and apps have set their own transaction guidelines.
- For instance, Punjab National Bank (PNB) and Bank of Baroda, state-run lenders, have set lower transaction limits at ₹25,000 and ₹50,000 respectively. Additionally, some apps, including Google Pay, have a limit of ten transactions per day across all UPI apps.
- Security and Seamless Functioning: As UPI expands its reach, including non-resident accounts with international numbers and its increasing utility in daily life, limits play a significant role in sustaining its growth.
- Use-case Expansion: Daily limits also become important as the UPI interface explores new use cases.
- For example, there is a proposed pilot project for coin-vending machines with UPI as the facilitator. Setting limits aids in managing the expanding scope of UPI and supporting its adoption in various domains.
Recent trends observed with respect to UPI:
- In May 2023, the total number of transactions facilitated through UPI reached 9,415.19 million, with a combined value of approximately ₹14.89 lakh crore. This indicates a substantial increase in both transaction volume and value.
- P2P (peer-to-peer) transactions accounted for around 43% of the volume compared to P2M (peer-to-merchant), but in terms of value, their share amounted to ₹11.45 lakh crore.
- In the P2P category, a significant majority of transactions (54.2%) were conducted in the below ₹500 range, while in the P2M category, a considerable portion (84.3%) fell within the same amount bracket. This indicates a lower-value utility for P2M transactions.
- Until February of the financial year 2022-23, the total number of reported UPI fraud cases had increased by approximately 13% compared to the previous financial year, totalling 95,402 cases.
- However, there was a decline in the fraud-to-sales ratio, which stood at 0.0015%.
- Consequently, there is an urgent need to establish a robust safeguard infrastructure within the growing UPI ecosystem in order to address the rising incidence of fraud.
Nut Graf: The conversation about daily limits revolves around striking a balance between maintaining security measures and accommodating the increasing popularity and utility of the UPI interface in everyday transactions.
Category: SCIENCE AND TECHNOLOGY
1. Impact of Chronic Stress on Human body
Syllabus: Awareness in Different Fields
Mains: Various issues with mental health and its impact on the physical body
Context: This article discusses the impact of psychological stress on the intestine.
Introduction:
- A recent study published in the Cell journal shed light on the connection between mental health and gastroenterology, specifically in relation to inflammatory bowel disease (IBD).
- The study emphasised the profound impact of mental health on inflammatory responses in the body, particularly during disease flares in IBD patients.
- With further research, the study’s author envisions the development of drugs that can effectively block the inflammatory cascades triggered by psychological stress.
Key Details:
- The study brings attention to the influence of stress on the body, particularly the gastrointestinal (GI) system. It highlights the role of stress in stimulating the adrenal gland to produce glucocorticoids, a stress hormone.
- Short-term stress, such as before an exam, can lead to reduced appetite and increased bowel movements.
- However, chronic or long-term stress, like toxic work environments, difficult relationships, or childhood pressure to perform, can result in inflammation of the gastrointestinal tract, such as IBD.
- In cases of chronic stress, the body continuously releases glucocorticoids.
- Chronic stress not only triggers the production of glucocorticoids but also initiates inflammatory responses in the gastrointestinal tract. These responses involve both physical damage to the intestine and functional changes in gut motility due to inflammatory mediators.
- The study emphasises the interconnectedness of the body’s response to stress and the functioning of the gut-brain axis. Stress triggers a cascade of physiological changes involving various systems and hormones, ultimately affecting the GI system and contributing to conditions like irritable bowel syndrome (IBS) and IBD.
- Understanding these complex mechanisms is crucial for comprehending the effects of chronic stress on the gastrointestinal system.
IBD v/s IBS:
- In contrast to IBS, which is associated with stress and commonly affects women, IBD is a distinct condition.
- Unlike IBD, IBS does not involve an inflammatory response as its cause or consequence.
- Physical changes such as ulcers and structural alterations are observable in the colon during endoscopy for individuals with IBD, whereas such changes are not present in IBS characterised by symptoms like bloating, constipation, and diarrhoea.
- IBD is immunologically mediated and can have hereditary factors, while IBS is part of a group of disorders known as gut-brain interaction disorders (DGBI).
- IBD, such as ulcerative colitis and Crohn’s disease, carries the risk of colorectal cancer, highlighting the severity and potential complications of this condition.
- On the other hand, IBS is part of a broader spectrum of disorders involving the interaction between the gut and the brain.
- The study’s findings emphasise the importance of addressing biases and misconceptions surrounding IBS within the medical community, as they can impact patient care and treatment outcomes.
Treatment to manage stress:
- The use of specific GI-directed behavioural therapies that employ cognitive-behavioural approaches can address anxiety related to GI symptoms.
- Aerobic exercise and yoga are beneficial in managing stress. Aerobic exercises release endorphins, which enhance mood and improve pain tolerance.
- Regular yoga practice increases brain-derived neurotrophic factor (BDNF) levels, which are crucial for learning and memory. Additionally, yoga induces a relaxation response.
Nut Graf: A recent study highlights the link between mental health and gastroenterology, particularly in inflammatory bowel disease (IBD). Chronic stress triggers inflammatory responses in the gastrointestinal tract, but further research may lead to drugs that block these cascades. Behavioural therapies and activities like aerobic exercise and yoga can help manage stress.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
Syllabus: Infrastructure: Energy, Ports, Roads, Airports, Railways, etc.
Prelims: Contribution of railways to the economy and the employment
Mains: Role of the railways in the realisation of economic growth and capacity expansion.
Context: The Balasore Railway accident case in Odisha is being given to the CBI for investigation.
Commission of Railway Safety (CRS)
- It is a government body that acts as the railway safety authority in the country.
- CRS deals with matters related to the safety of rail travel and operations, among some other statutory functions – inspectorial, investigatory, and advisory – as laid down in the Railways Act, 1989.
- Investigating serious train accidents is one of the key responsibilities of the CRS, which is headquartered in Lucknow, Uttar Pradesh.
- The CRS does not report to the Ministry of Railways of the Railway Board. It is, in fact, under the administrative control of the Ministry of Civil Aviation (MoCA).
- The reason or principle behind this is to keep the CRS insulated from the influence of the country’s railway establishment and prevent conflicts of interest.
Railway safety instruments:
What is KAVACH?
- It is an indigenously developed automatic train protection system rechristened as ‘Kavach’ (Train Collision Avoidance System), to prevent accidents due to human error resulting in signal passing at danger and over-speeding.
- It is a set of electronic devices and Radio Frequency Identification devices installed in locomotives, in the signalling system as well as the tracks, that talk to each other using ultra-high radio frequencies to control the brakes of trains and also alert drivers, all based on the logic programmed into them.
- Of the total railway route of over one lakh kilometres across the country, Kavach has been installed on only 1,445 kilometres so far.
- The South-Eastern Railway division, the route where the Balasore tragedy took place, has not spent a rupee on anti-collision devices in the last three years, even though an amount of Rs 943 crore was sanctioned.
Know more about the Kavach safety system in the linked article.
LHB (Linke Hofmann Busch) Coach
- Indian Railways production units have ramped up LHB (Linke Hofmann Busch) coach production by manufacturing 4,175 LHB coaches in FY 2022–2023.
- LHB coaches were deemed to be safer with anti-collision technology, disc-brakes, and centre buffer coupling system (absorbing high impacts and preventing flipping of coaches post impact).
Nut graf: The Odisha train tragedy puts the spotlight on the lack of adequate safety measures and world-class equipment when it comes to the Indian Railways. There is a need to up the effort and investment into building resilient, high-quality, accident-proof systems and equipment in order to avoid such horrific accidents in the future.
Syllabus: Effects of liberalisation on the economy, changes in industrial policy and their effects on industrial growth.
Prelims: Basic data regarding production-linked subsidy scheme
Mains: Role of the PLI Schemes in providing thrust to the manufacturing sector in the country.
What is the Production Linked Subsidy (PLI) Scheme?
- It is a scheme that aims to give companies incentives for incremental sales from products manufactured in domestic units.
- The scheme also aims to encourage local companies to set up or expand existing manufacturing units.
Know more about the PLI scheme in the linked article.
Why is the production-linked scheme needed?
- PLI is important as the government cannot continue making investments in these capital-intensive sectors as they need longer times to start giving returns.
- Instead, what it can do is invite global companies with adequate capital to set up capacities in India.
- This scheme also plays an important role in providing a thrust to the manufacturing sector in the economy of the countries.
Benefits of the PLI scheme:
- The PLI scheme makes investments in the core sectors like electronics, and batteries. Investment in the core sectors leads to the generation of externalities which would eventually benefit our economy.
- This scheme will play an important role in reducing the impact of human activities on the environment. With this scheme, investments are made in the field of green sectors like green hydrogen, e-vehicles, etc.
- Global electronics giants such as Samsung, Pegatron, Flex, and Foxconn among others are looking to either set up shop or expand their presence in India.
- This scheme will, on the one hand, attract big foreign investment in the sector, while also encouraging domestic mobile phone makers to expand their units and presence in India.
Concerns with respect to the PLI scheme:
- The PLI schemes have led to the transformation of the Indian economy to organised sectors. As a result of this, there has been a falling employment generation. Resultantly, there is slow employment growth and economic slowdown.
- PLI just acts like a subsidy scheme so it is important that incentives are distributed among the corporations in a manner that does not give a disproportionate advantage to one over the other.
Nut graf: PLI schemes offer many advantages to the manufacturing sectors but there is a need for the schemes to be distributed rationally in order to reduce their negative impact and enable equitable growth of sectors and the economy as a whole.
F. Prelims Facts
Syllabus: GS02-International Relations
Prelims: Critical and Emerging Technologies; Artificial intelligence
Key Details:
- The United States and Britain have announced a fresh strategic pact in an effort to address threats posed by Russia, China, and economic instability, reaffirming their longstanding “special relationship.”
- The declaration aims to increase US-UK trade in areas such as defence, nuclear materials and the critical minerals used in electric-car batteries, as the US tries to build “economic security” among Western allies.
- The Atlantic Declaration includes plans to mitigate some of the impact of the US flagship Inflation Reduction Act (IRA) on the UK economy, with proposals to remove barriers which affected trade in electric vehicle batteries.
- Under current policy, the IRA provides a tax credit worth $3,750 (£3,000) for each electric vehicle (EV) manufactured in the US, or that uses components mined, processed or manufactured in the country.
- The UK is already a net exporter of raw materials for EV batteries to the US. But nations without a US trade deal are barred from accessing IRA subsidies.
- The Atlantic Declaration commits the UK and the US to work on a new critical minerals agreement – which would give buyers of vehicles made using critical minerals processed, recycled or mined by UK companies access to tax credits.
- Japan already has a similar deal, which allows Japanese firms to also swerve export duties on minerals used in producing EV batteries.
- Both countries also agreed to launch a new civil nuclear partnership as part of their clean energy cooperation, which will include setting up new infrastructure over the long term and cutting reliance on Russian fuel.
- Both leaders acknowledged the significant transformations in the world economy, comparable to the Industrial Revolution, largely driven by the advancements in artificial intelligence, which have raised concerns about potential catastrophic consequences.
G. Tidbits
1. Agni Prime
- New generation ballistic Missile ‘Agni Prime’ was successfully flight-tested by the Defence Research and Development Organisation (DRDO) from Dr APJ Abdul Kalam Island off the coast of Odisha on June 07, 2023.
- Range Instrumentation like Radar, Telemetry and Electro-Optical Tracking Systems were deployed at different locations, including two down-range ships, at the terminal point to capture flight data covering the entire trajectory of the vehicle.
- Agni-P or Agni-Prime is a medium-range ballistic missile being developed as a successor for Agni-I and Agni-II missiles in the operational service of Strategic Forces Command with significant upgrades in the form of composite motor casing, manoeuvrable reentry vehicle (MaRV) along with improved propellants, navigation and guidance systems.
- Agni-P is a two-stage, surface-to-surface, road mobile and solid-fueled MRBM which is transported by a truck and launched via a canister.
- It is a ballistic missile with dual redundant navigation and guidance system. It is the sixth missile in the Agni (missile) series.
- The Union Health Ministry has officially announced that the National Exit Test (NExT) will be conducted starting in 2024.
- The NExT will replace the final-year MBBS examination and NEET-PG, serving as the registration and admission test for doctors and medical postgraduate courses.
- The combined NExT exam will also serve as the mandatory licentiate examination for undergraduate medical students to practise modern medicine in India.
- Students who received their medical degrees from National Medical Commission (NMC)-approved medical institutions and overseas students also will have to qualify in the National Exit Test.
- The All India Institute of Medical Sciences (AIIMS), Delhi, is expected to be the conducting body for the NExT, focusing on evaluating students’ clinical and practical knowledge.
- Currently, the National Board of Examinations in Medical Sciences (NBEMS) is responsible for holding exams like NEET PG (National Eligibility cum Entrance Test Postgraduate), & Foreign Medical Graduate Examination (FMGE).
H. UPSC Prelims Practice Questions
Q1. How many of the following statements are true? (Level-Easy)
- The Pumped Storage projects are often developed in conjunction with hydel power projects.
- It is a form of renewable energy.
- They use surplus energy during low-demand times in order to fulfil the demand during peak hours.
Options:
- Only 1 statement
- Only 2 statements
- All 3 statements
- None
CHECK ANSWERS:-
Answer: c
Explanation:
- Pumped storage hydropower (PSH) is a type of hydroelectric energy storage. It is a configuration of two water reservoirs at different elevations that can generate power as water moves down from one to the other (discharge), passing through a turbine. The system also requires power as it pumps water back into the upper reservoir (recharge).
- Pumped-storage hydroelectricity allows energy from intermittent sources (such as solar, wind) and other renewables, or excess electricity from continuous base-load sources (such as coal or nuclear) to be saved for periods of higher demand.
Q2. How many of the following pairs are correctly matched? (Level-Medium)
- Repo Rate: the rate at which commercial banks give out loans
- Reverse Repo Rate: the rate at which commercial banks take loans from the RBI
- Statutory Liquidity Ratio: Minimum % of deposits to be maintained by commercial banks as liquid assets
Options:
- Only 1 pair
- Only 2 pairs
- All 3 pairs
- None
CHECK ANSWERS:-
Answer: a
Explanation:
- Statement 01 is incorrect, Repo stands for “Re Purchase Option”. Repo Rate is the rate at which the Reserve Bank of India lends to other banks by buying the securities with an agreement that the bank will buy back on a certain date.
- Statement 02 is incorrect, The reverse repo rate is the rate of interest that is provided by the Reserve Bank of India while borrowing money from commercial banks.
- Statement 03 is correct, Statutory Liquidity Ratio (SLR) is the minimum percentage of deposits that a commercial bank must keep in liquid cash, gold, or other securities.
Q3. How many of the following pairs of the monument and the ruler by whom it was constructed are correctly matched? (Level-Medium)
- Siri Fort: Allauddin Khilji
- Jantar Mantar: Maharaja Jai Singh II
- Konark Sun Temple: Narasimhadeva I
- Qutub Minar: Iltutmish
Options:
- Only 1 pair
- Only 2 pairs
- Only 3 pairs
- All 4 pairs
CHECK ANSWERS:-
Answer: d
Explanation:
- Among the six rulers of the Khilji dynasty, Alauddin Khilji laid the foundation of his capital Siri in 1303 A.D.
- A Jantar Mantar is an assembly of stone-built astronomical instruments, designed to be used with the naked eye. There were five Jantar Mantars in India (Jaipur, Delhi, Ujjain, Mathura, and Varanasi), all of them built at the command of Maharaja Jai Singh II.
- Konark Sun Temple is a 13th-century (year 1250) temple in Odisha. The temple is attributed to King Narasimhadeva I of the Eastern Ganga dynasty about 1250 CE.
- Qutbu’d-Din Aibak laid the foundation of Qutub Minar in 1199 AD and raised the first storey, to which were added three more storeys by his successor and son-in-law, Shamsu’d-Din Iltutmish (AD 1211-36).
Q4. Which of the following statements are true? (Level-Easy)
- IMD is designated as a Regional Specialized Meteorological Centre for 13 nations.
- The naming of the cyclones in the North Indian Ocean region started in 2004.
Options:
- 1 only
- 2 only
- Both 1 and 2
- Neither 1 nor 2
CHECK ANSWERS:-
Answer: c
Explanation:
- Worldwide there are six regional specialised meteorological centres (RSMCs) and five regional Tropical Cyclone Warning Centres (TCWCs) mandated for issuing advisories and naming of tropical cyclones.
- India Meteorological Department is one of the six RSMCs to provide tropical cyclone and storm surge advisories to 13 member countries under the World Meteorological Organization (WMO)/United Nations Economic and Social Commission for Asia-Pacific (ESCAP) Panel.
- The 2004 North Indian Ocean cyclone season was the first in which tropical cyclones were officially named in the basin.
- Cyclone Onil, which struck India and Pakistan, was named in late September.
Q5. What is the use of Biochar in farming? (Level-Difficult) (PYQ-CSE-2020)
- Biochar can be used as a part of the growing medium in vertical farming.
- When biochar is a part of the growing medium, it promotes the growth of nitrogen-fixing microorganisms.
- When biochar is a part of the growing medium, it enables the medium to retain water for a longer time.
Which of the above-given statements is/are correct?
- 1 and 2 only
- 2 only
- 1 and 3 only
- 1, 2 and 3 only
CHECK ANSWERS:-
Answer: d
Explanation:
- Statement 01 is correct, Biochar is created by subjecting biomass to high temperatures without the presence of oxygen. Utilising biochar in vertical farming has the potential to greatly enhance crop yields.
- Statement 02 is correct, Biochar holds promise in enhancing the inherent nitrogen fixation capability of legumes within the soil. It provides a favourable environment for nitrogen-fixing microorganisms, thereby promoting their survival and activity.
- Statement 03 is correct, Because of its porous nature, biochar can improve soil’s water retention. Thereby plants will have more water available to them for a longer period of time.
I. UPSC Mains Practice Questions
- Indian Railways has been the lifeline of India’s growth story. Analyse the challenges, advantages and disadvantages of its privatisation. (250 words; 15 marks) (GS-3; Economy)
- Assess the impact of the Performance Linked Incentive Scheme in giving a boost to India’s manufacturing sector. (250 words; 15 marks) (GS-3; Economy)
Read the previous CNA here.
CNA 09 June 2023:- Download PDF Here
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