28 June 2021: UPSC Exam Comprehensive News Analysis

CNA 28th June 2021:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
C. GS 3 Related
SECURITY
1. Drones are now a favoured terror tool
ECONOMY
1. Govt. faces a tough choice on interest rates
ENVIRONMENT AND ECOLOGY
1. Dead fish floating in Guwahati tank raises concern
D. GS 4 Related
E. Editorials
SOCIAL ISSUES
1. On the margins with full equality still out of reach
HISTORY
1. The power of an apology
POLITY AND GOVERNANCE
1. New Delhi’s tactical half-measure on Kashmir
INTERNATIONAL RELATIONS
1. Another shade of grey
F. Prelims Facts
G. Tidbits
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

Category: ECONOMY

1. Govt. faces a tough choice on interest rates

Context:

Quarterly reset of interest rates on small savings schemes is due on June 30, 2021.

Small Saving Instruments:

  • The small savings schemes basket comprises 12 instruments including the Savings Deposit, National Saving Certificate (NSC), Public Provident Fund (PPF), Kisan Vikas Patra (KVP) and Sukanya Samriddhi Scheme.
  • The government resets the interest rate at the beginning of every quarter.
  • Theoretically, since 2016, interest rate resetting has been done based on yields of government securities of the corresponding maturity with some spread on the scheme for senior citizens.
  • However, in practice, the interest rate changes are made considering several other factors.

Government’s dilemma:

  • The RBI has often blamed the high administered interest rates on small savings for poor transmission of its rate cuts in the economy.
  • According to the economists, amid a surge in inflation, a cut in small savings rates would further hurt households.
    • Inflation is expected to stay elevated around 5%-6% through 2021-22.
  • In March 2021, sharp cuts in the rates on small savings schemes were rolled back within hours.
  • As per recent RBI data on savings rates for the 3rd quarter of 2020-21, household savings have been shrinking significantly for two quarters in a row even before the second COVID-19 wave.

Way Forward:

  • If the formula set for small savings rates is followed, there may be a need to cut rates to some extent. However, it could turn out to be very unpopular with rising inflation and declining savings rates.
  • Recent auctions of 10-year G-secs has struggled to find takers at the interest rates being offered by the RBI suggesting that borrowing from the market at low rates may not be sustainable.
  • The government will also have to weigh the costs of leaving the rates unchanged on its borrowing plans.

Category: ENVIRONMENT AND ECOLOGY

1. Dead fish floating in Guwahati tank raises concern

Context:

At least 400 dead fish were found floating in a Guwahati tank.

Details:

  • The fish mortality was due to a sudden dip in oxygen level.
  • The death of fish was not due to poisoning but due to environmental degradation.
  • Non-penetration of sunlight due to a layer of algae has also been a factor behind the fish death.
  • Water was showered over the tank as a short-term measure with pumps to increase the oxygen level.
  • Paddle boating, spanking the water with bamboo, creating wave action through mechanised boats can increase the dissolved oxygen (DO) in the tank.

Effects of organic pollution in freshwaters:

  • Organic pollution occurs with large quantities of organic compounds in water bodies.
  • During the decomposition process, the dissolved oxygen in the water body would be used up at a greater rate than it can be replenished, causing oxygen depletion.
  • It contains large quantities of suspended solids which by increasing the turbidity of the water, does not allow the sunlight to pass through the water surface. This reduces the light available to photosynthetic organisms.
  • Organic wastes also settle out on the bottom of the stream. This could alter the characteristics of the substratum.

Dissolved Oxygen:

  • Dissolved Oxygen is one of the most important factors for the maintenance of biodiversity in a pond.
  • The atmosphere has about 20% oxygen or 2,00,000 parts per million (ppm) but only about 1,00,000 ppm gets dissolved in water.
  • DO concentration below 3ppm can kill the water animals (here, fish).

CNA 28th June 2021:- Download PDF Here

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