CNA 23 October 2022:- Download PDF Here
TABLE OF CONTENTS
A. GS 1 Related B. GS 2 Related INTERNATIONAL RELATIONS 1. Saudi Crown Prince Mohammed bin Salman expected to visit Delhi in Nov. 2. Xi Jinping set to begin third term POLITY AND GOVERNANCE 1. Decisions taken in past eight years helped India tide over pandemic: PM C. GS 3 Related INTERNAL SECURITY 1. Info on Rohingya detention centres ‘secret’: Ministry D. GS 4 Related E. Editorials INTERNATIONAL RELATIONS 1. Why is Pakistan off FATF ‘grey list’? INDIAN ECONOMY 1. When does RBI step in to monitor a bank? F. Prelims Facts 1. ISRO’s heaviest rocket with 36 satellites on board lifts off G. Tidbits 1. New species of genus Allmania spotted 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. Saudi Crown Prince Mohammed bin Salman expected to visit Delhi in Nov.
Syllabus: Bilateral agreements affecting India’s interest.
Mains: India- Saudi Arabia relations.
Prelims: India- Saudi Arabia relations.
Context: Saudi Crown Prince and Prime Minister of the Kingdom of Saudi Arabia will visit India on November 14.
Details:
- The Crown Prince and Prime Minister of the Kingdom of Saudi Arabia Mohammad bin Salman (MbS) can visit India on November 14, 2022.
- The visit will last only for a few hours and the leaders of both countries will depart to attend the G-20 summit in Bali, on November 15 and 16, 2022.
- The leaders of both countries (India and Saudi Arabia) will exchange views on the current energy security scenario due to the Russian-Ukraine war. The discussion on the western coalition sanctions is also expected. It should be noted that neither India nor the Kingdom of Saudi Arabia has joined the western sanctions.
- The visit is geopolitically significant because of U.S.-Saudi tensions on the issue of oil production cuts by the OPEC+ grouping that consists of Russia. The U.S. President had warned Saudi Arabia regarding the same.
- Moreover, both leaders will review bilateral projects in Delhi. The progress on Mr. Salman’s 2019 promise of $100 billion investment in India, especially in oil reserves, and green energy projects will also be reviewed.
- Indian Prime Minister Mr. Modi visited Saudi Arabia in 2016 and 2019 and announced a number of projects and Memorandums of Understanding(MoUs). These will also be reviewed.
- The discussion will also focus on the agenda for the G-20 which will be hosted by India in September 2023.
Implications of the Visit:
- The high-profile visit of Mr. Salman may cause Indian Prime Minister, Mr. Modi to skip the ASEAN-India summit and East Asia Summit which is scheduled to be held in Phnom Penh from November 10-13, 2022.
- It should be noted that this is an important year for the ASEAN-India partnership as it marks the 30th year of ties between India and the Southeast Asian nations grouping.
- A special “commemorative summit” is also planned to be held in this context.
- India and ASEAN are in talks to upgrade the relationship to a Comprehensive Strategic Partnership(CSP).
- China and Australia were upgraded to CSPs in 2021. The relationship of the U.S. and India with ASEAN is likely to be upgraded this year.
For more information on ASEAN, read here: ASEAN | Association of Southeast Asian Nations – History, Members & Significance [UPSC Notes]
Nut Graf: The visit of the leader of Saudi Arabia to India is geopolitically significant. The visit might also have implications for the ASEAN-India summit and East Asia summit, which might be skipped by the Indian Prime Minister due to a clash in the schedule.
2. Xi Jinping set to begin third term
Syllabus: Effect of policies and politics of the developed world.
Mains: Political changes in China.
Context: Culmination of National Congress in China.
Details:
- China’s ruling Communist Party’s once-in-five-year congress culminated. The congress confirmed the precedent for the current leader (Mr. Xi Jinping) to have a third term. It paved the way for his domination in Chinese politics for another five-year period.
- Moreover, four allies of the President will also be appointed shortly to the new seven-member Politburo Standing Committee (PBSC).
- The CPC congress promised an unchallenged position to Mr. Xi at the top echelon of the party.
- In a surprise move the second-ranked and fourth-ranked members of PBSC members were excluded from the new Central Committee.
- All four appointments are said to be close allies of the Chinese president. The current developments in the meeting mark a ‘clean sweep’ in the most powerful political body of Chinese politics. PBSC has shared power between different party factions in the past.
- However, it is suggested by various experts that Mr. Xi, has shattered both factional equations and the collective leadership model returning to a one-man rule in China.
- The amendments to the party constitution were also approved by the congress thereby underlining Mr. Xi’s “core” status by calling on the party to “establish his core position and the guiding role” of his ideology and “uphold his core position and the centralized, unified leadership” of the party, called the “two establishes” and “two upholds”.
For more information regarding the National Congress, read here: 16 Oct 2022: UPSC Exam Comprehensive News Analysis
Nut Graf: The Chinese National Congress has expanded made amendments to expand the status of Mr. Xi Jinping and assured him the third term as the President of China. The new leadership will also be seen in a seven-member Politburo Standing Committee.
Category: POLITY AND GOVERNANCE
1. Decisions taken in past eight years helped India tide over pandemic: PM
Syllabus: Government policies and interventions for development.
Mains: Employment- recruitment drive.
Context: Recruitment drive- Rozgar Mela was launched by Prime Minister.
Details:
- Prime Minister of India launched a recruitment drive named Rozgar Mela for nearly 10 lakh Union government jobs. The appointment letters were given to approximately 75,000 appointees in the first batch during the ceremony.
- The recruitments will be done in around 38 Ministries and departments at Group A, B (both gazetted and non-gazetted), and C levels. The appointments are made to various posts like central armed force personnel, income tax inspectors, constable, sub-inspector, lower division clerks, personal assistants, stenographers, and multi-tasking staff.
- It was announced earlier in June 2022 that nearly 10 lakh vacancies in Union government departments would be filled in a mission mode till 2023 (ahead of the 2024 Lok Sabha election).
- Prime Minister exclaimed that the completion of the recruitment process in a few months and issuing appointment letters to new recruits was an indication of the change that the government had undergone in the past 7-8 years.
- Efforts taken by the government in this regard:
- Self-attestation and abolition of interviews for Group C and D posts were initial initiatives taken by the government.
- As per the Employee Provident Fund Organization’s data approximately 17 lakh people joined the EPFO in August and became part of the formal economy. Moreover, around eight lakh belong to the age group of 18-25.
Nut Graf: The appointment letters were given in the Rozgar Mela to nearly 75,000 new recruits. It was highlighted in the ceremony that India has worked tirelessly in the past eight years and got rid of the shortcomings that created hindrances in India’s economy.
C. GS 3 Related
1. Info on Rohingya detention centres ‘secret’: Ministry
Syllabus: Challenges to the internal security of the country.
Mains: The refugee crisis.
Details:
- The Union Home Ministry shared on social media(Twitter) months ago, the direction to the Delhi government about the declaration of the current location of Rohingya refugees in Delhi. However, in a recent RTI reply Home Ministry said that the information was “secret”.
- Various controversies associated with Rohingya refugees:
- It was tweeted by Union Home Minister on August 17, 2022, that Rohingya refugees will be given small flats for accommodation. It was further added that “India has always welcomed those who have sought refuge in the country”.
- It was also highlighted that India respected the United Nations Refugee Convention, of 1951, and provides refuge to all, regardless of their religion, race, or creed.
- A clarification was also issued on Twitter as a consequence of severe criticism by right-wing groups regarding the directions to provide EWS (Economically Weaker Section) flats to Rohingya migrants.
- The Ministry clarified that shifting Rohingya to the new location was proposed by the Delhi government. The tweet(of August 17) further added that the Ministry had directed Delhi to continue the settlement of Rohingya at their location at that time till the deportation issue is sorted.
- According to the tweet “Illegal foreigners should be kept in Detention Centre till their deportation as per law. The Delhi government has not declared the present location as a Detention Centre. They have been directed to do the same immediately.”
- Such communication and exchanges in the social media platform led to a political blame game between the Central and Delhi governments, each accusing the other of appeasing a persecuted Muslim community from Myanmar.
- In a response to a Right to Information (RTI) query, the Ministry of Home said the requisite information was exempted under Section 8 (1) (a) of the Act and has been marked “secret”.
- According to the act, there shall be no obligation to give any citizen “information, disclosure of which would prejudicially affect the sovereignty and integrity of India, the security, strategic, scientific or economic interests of the State, relation with foreign State or lead to incitement of an offence.”
Rohingya and their current refuge in India:
- Approximately 1200 Rohingya relocated to Delhi in the year 2012 after multiple waves of violence in Myanmar.
- They initially lived in an open space beside a residential area in southeast Delhi which (near Uttar Pradesh). The land belongs to the Zakat Foundation, a non-governmental organization (NGO).
For more information on the Rohingya crisis, read here: UPSC 2017: Comprehensive News Analysis – October 27 – BYJU’S
Nut Graf: The Rohingya refugee issue has seen various controversies in the past and the blame game between the governments at different levels has also been observed. The recent Right to information query was also overlooked citing Section 8(1)(a) of the RTI act. The need of the hour is to look at the matter more sensitively.
D. GS 4 Related
Nothing here for today!!!
E. Editorials
Category: INTERNATIONAL RELATIONS
1. Why is Pakistan off FATF ‘grey list’?
Syllabus: Important international institutions, agencies, fora – their structure and mandate.
Mains: Pakistan’s status in the Grey list of FATF.
Prelims: Financial Action Task Force.
Context: Pakistan was moved out of the grey list of FATF.
Details:
- The global watchdog on anti-money laundering(AML) and combating financing terrorism(CFT), the Financial Action Task Force(FATF), announced to take Pakistan out of the “grey list”. The countries that are categorized as grey list are under “enhanced monitoring”.
- Pakistan was grey listed in February 2018.
- FATF said that Pakistan made “significant progress” in this direction and improved legal and governance mechanisms. This can be attributed to the recent diplomatic efforts by Pakistan’s Foreign Minister and Army Chief General, who visited the United States in this regard.
- In the recent plenary session (October 20-21, 2022), FATF members including India, reviewed the record of about 26 countries and unanimously agreed to take Nicaragua and Pakistan out of the “grey list”. However, Mozambique, The Democratic Republic of Congo, and Tanzania were added to the “grey list”, whereas Myanmar was moved from the grey list to the black list because of the actions taken by the military junta since the overthrow of the elected government in a coup in February 2021.
Background Details of FATF:
- The 39-member FATF was established in the year 1989 out of a G-7 meeting of developed nations. It comprises 37 countries and 2 regional organizations- the European Commission, the European Union’s executive body, and the Gulf Cooperation Council.
- India joined it in 2006 with ‘observer’ status and became a full member in 2010.
- In accordance with its mission statement, the members meet regularly to monitor various countries.
- The mission statement is “review money laundering and terrorist financing techniques and counter-measures, and promote the adoption and implementation of the FATF Recommendations globally”.
- The decision-making body of the FATF or Plenary meets three times a year (February, June, and October) to review “Mutual Evaluation Reports” (MERs). If there are major deficiencies in the AML/CFT regime of a country, it is put under “jurisdictions under increased monitoring” termed as a grey list. If it further fails to address the concerns of FATF then it is placed on a “high-risk jurisdictions” popularly called as a “black list”.
- The countries which are placed on both lists face increasing levels of financial strictures. This listing is similar to global ratings and makes it difficult for the country to procure loans from financial organizations like the IMF, World Bank, Asian Development Bank, etc. Moreover, it is also difficult to invite investment from private companies and other countries.
- The deliberations of the FATF are made in absolute secrecy, and its decisions should be made strictly on the basis of procedures and technicalities.
For more information on FATF, read here: Financial Action Task Force (FATF) for the UPSC International Relations Syllabus
Pakistan’s case:
- Pakistan was on the “grey list” earlier from 2012-2015.
- Pakistan was handed two action plans encompassing 34 points (27+7) since 2018. It recommended the country to formulate laws against money laundering and terror activities in line with international requirements.
- Islamabad was also asked to maintain a database of terror groups operating on its soil and the actions that were taken against such groups. This has been reiterated from previous decades when terror groups like the Taliban, Al-Qaeda, and Jaish-e-Mohammad operated freely, and designated terrorists like Hafiz Saeed and Masood Azhar took part in political processes and public rallies.
- Though Pakistan adopted various steps, a major sticking point or last item that remained was addressing by “demonstrating that terror finance investigations and [the] prosecution target senior leaders and commanders of UN-designated groups”. As per UNSC guidelines, member states should ensure that all designated terrorists are unable to access funds, arms, and travel, and such terrorists are duly and effectively prosecuted.
- In 2021 majority of Pakistan’s FATF reporting was about bringing terrorists like Hafiz Saeed, Zakiur Rehman Lakhvi (26/11 commander), Sajid Mir (26/11 planner), Rauf Asghar (IC-814 hijacking planner)to court and hold a conviction. However, it was claimed that it couldn’t trace JeM chief Masood Azhar could not be traced. He was wanted in a number of attacks like the 2001 Parliament attack, the J&K legislature bombing, strikes on military camps at Uri, Pathankot, and the Pulwama bombing in 2019.
- At the June plenary session, the FATF visited Pakistan and reviewed it from August 31-September 2. It concluded that Pakistan’s measures were reflected “on the ground”. After this procedure, it was expected that at the October plenary, the country would receive praise and earn a reprieve for completing the action plans.
India’s Reaction to the FATF decision:
- All FATF decisions are adopted by consensus. India being a member of the body has agreed to the decision and has conceded in a statement that because of FATF, Pakistan was “forced” to take “some action against well-known terrorists” even including those involved in the 26/11 Mumbai attack.
- However, it was observed that India wanted more global checks on Pakistan.
- Some unease was also observed because the United States (U.S.), which has been consistently demanding action against Pakistan-sponsored terrorism, has become quite lenient in the last few months.
- The Indian government is preparing for its turn at FATF scrutiny or MER process that will begin in early 2023.
Related Links: Pakistan’s FATF Woes: RSTV Big Picture Analysis for UPSC IAS exam.
Nut Graf: Financial Action Task Force has unanimously taken the decision to take Pakistan out of the “grey list”, owing to the completion of the action plan by Pakistan. India being the party to the organization has agreed to the decision but seems a bit apprehensive.
1. When does RBI step in to monitor a bank?
Syllabus: Mobilization of resources.
Mains: Banking sector- Dhanlaxmi bank issue
Prelims: Capital-adequacy-ratio, Prompt Corrective Action.
Context: Dhanlaxmi Bank was placed under tight monitoring by the Reserve Bank of India (RBI).
Details:
- Dhanlaxmi Bank, a Thrissur-based private bank has come under public scrutiny due to its financial position. The RBI has placed it under tight monitoring because of the intense court battle raised by a group of minority shareholders against the management team of the bank owing to a lack of financial disclosures, increasing expenses, and overall mismanagement.
- It was highlighted that minority shareholders have arranged for an extraordinary general meeting in the upcoming month to curb the spending powers of the current chief executive officer(CEO), as the capital adequacy situation of the bank is deteriorating.
Background Details:
- The capital-to-risk-weighted assets ratio (CRAR) of the bank reduced to nearly 13% in March 2022 from 14.5% earlier. It thus prompted RBI to take stock of the financial situation of the bank.
- According to Basel-III norms, banks are mandated to maintain the CRAR at 9% or above.
- It is also observed that the capital adequacy of Dhanlaxmi Bank has dropped below the set standards even in the past and was placed under the prompt corrective action framework (PCA) as a consequence of it.
- If a bank is placed under the PCA, RBI monitors it closely and places several restrictions including the lending business.
For more information on Prompt Corrective Action, read here: Prompt Corrective Action (PCA): Functions and Types
Importance of Capital Adequacy ratio:
- The capital adequacy ratio indicates the ability of a bank to survive in case of significant losses in its loan book.
- A bank is unable to operate if the total asset value drops below the total liabilities value because it would decimate its capital (or net worth) and can make the bank insolvent.
- The banking regulations like Basel-III norms closely monitor the changes in the capital adequacy of banks so that major bank failures can be prevented and their severe implications on the Indian economy can be mitigated.
- The capital status of a bank should not be confused with cash held by a bank in its vaults.
- The CRAR is defined as a ratio that compares the value of the capital of the bank with the value of different assets weighted according to their risk. It is used to measure the risk of insolvency faced by a bank.
- In other words, the CRAR measures the risk posed to the solvency of the bank by the asset quality on the balance sheet of the bank.
- Considering Dhanlaxmi Bank, the write-down and reclassification of tier-2 bonds(considered equivalent to equity capital) is expected to adversely impact the bank’s capital adequacy ratio in the coming months.
Future course of action:
- Dhanlaxmi Bank is issuing additional shares in the open market using rights issues in order to deal with the situation. As a result, the bank might raise more equity capital from existing shareholders. The rights issue is different from the initial public offering, where the shares are issued to new shareholders.
- The additional capital generation can help in raising the capital adequacy ratio and will serve as a buffer to absorb losses in case of a future crisis.
- However, the rights issue is getting postponed due to the court case. This might compromise the ability of the bank to follow the stipulated norms of RBI.
- The central bank will closely monitor Dhanlaxmi bank and might even intervene in case the delay of the rights issue threatens the bank’s ability to meet the capital adequacy norms.
- The Bank can also be considered an acquisition target by RBI.
Related Links: Banking Sector Reforms & Acts in India [Download List PDF]
Nut Graf: Dhanlaxmi bank has come under close monitoring by the Central Bank of the country as a consequence of its unmet capital adequacy ratio requirements. The ongoing legal battle between the minority shareholders and the management board of the Bank has further made matters complicated for the bank.
F. Prelims Facts
1. ISRO’s heaviest rocket with 36 satellites on board lifts off
Category: GS 3, Science and Technology
Syllabus: Important development in the field of space.
Prelims: LVM3-M2/OneWeb India-1
Context: The LVM3-M2/OneWeb India-1, the heaviest rocket of ISRO took off from the Satish Dhawan Space Centre SHAR at Sriharikota.
Details:
- LVM3-M2 is the dedicated commercial satellite mission of NewSpace India Limited (NSIL), a Central public sector enterprise under the Department of Space.
- The mission is undertaken as part of the commercial agreement between NSIL and a U.K.-based company – Network Access Associates Limited (m/s OneWeb Ltd).
- With the launch of this mission LVM-3 made an entry into the global commercial launch service market.
- The mission will launch 36 OneWeb Gen-1 satellites into a circular low earth orbit of around 601 km altitude.
For more information on ISRO, read here: Indian Space Research Organisation [ISRO] – Milestones, Objectives
G. Tidbits
1. New species of genus Allmania spotted
- A new species of the genus Allmania called Allmania multiflora has been found on the granite hillocks of Palakkad.
- It has been discovered 188 years after the genus and the first species were defined by botanists.
- It is a frail-looking plant, more precisely an annual herb that grows to a height of about 60 cm. It is found at heights in the range of 1,000 to 1,250 metres. It is erect with branches arising from the base. The stem is red to violet at the base and green above. Flowering and fruiting of the plant occur from the months of May to September.
- Allmania multiflora has been assigned such a name because it has a higher number of florets within an inflorescence.
- According to various studies covering genetic analysis, molecular and morphometric research, and field surveys, it is different from Allmania nodiflora, the first Allmania species.
- Allmania nodiflora, was originally published under the genus Celosia as Celosia nodiflora in the year 1753.
- Specimens found in Ceylon (present-day Sri Lanka) were first described as Allmania nodiflora in the year 1834.
- Allmania multifora is found in very few locations and is currently assessed as a critically endangered species(on the basis of the IUCN red list criteria).
- The species is facing a number of threats as its population is very small and it has the potential to be exploited by local residents as a vegetable along with amaranths. Moreover, its habitat (granite hillocks) also faces multiple threats.
Source: The Hindu
H. UPSC Prelims Practice Questions
Q1. How many of the following pairs of Indus Valley Civilization sites and their most notable features are correctly matched? (Level-Difficult)
Site Notable feature
- Lothal Oldest man made dockyard
- Dholavira Water management system
- Banawali Radial streets
- Kalibangan Evidence of ploughing and discovery of wooden ploughs
Options:
- One pair only
- Two pairs only
- Three pairs only
- All the four pairs
CHECK ANSWERS:-
Answer: d
Explanation:
- Lothal was one of the prominent cities of the Harappan civilization and is known for the discovery of the oldest man-made dockyard. National Maritime Heritage Complex (NMHC) is being developed at Lothal.
- Dholavira had one of the most efficient drainage and water management systems of the ancient world.
- Banawali was the only city in the Harrapan civilization with radial streets.
- Kalibangan is distinguished by its unique fire altars, the world’s earliest attested ploughed field, and wooden ploughs.
Q2. The newly discovered species Allmania multiflora of the genus Allmania is found in which of the following states? (Level - Difficult)
- Kerala
- Odisha
- Assam
- Madhya Pradesh
CHECK ANSWERS:-
Answer: a
Explanation:
- A new species of the genus Allmania called Allmania multiflora has been found on the granite hillocks of Palakkad, Kerala.
- It is a frail-looking annual herb that grows to a height of about 60 cm. It is found at heights in the range of 1,000 to 1,250 metres. It is erect with branches arising from the base. The stem is red to violet at the base and green above. Flowering and fruiting of the plant occur from the months of May to September.
Q3. Consider the following statements about Eucalyptus trees? (Level- Medium)
- The tree is native to India.
- They are fast growing and have timber that can be used for pulpwood and essential oils production.
- The chief concerns with eucalyptus trees are that they are water guzzlers and are known for making soil acidic and showing allelopathic effects.
Which of the above statement/s is/are correct?
- 1 only
- 1 and 2 only
- 2 and 3 only
- 3 only
CHECK ANSWERS:-
Answer: c
Explanation:
- Statement 1 is incorrect: Eucalyptus globulus, commonly known as southern blue gum or blue gum, is a species of tall, evergreen tree endemic to southeastern Australia.
- Statement 2 is correct: Eucalyptus has a rapid growth and has several uses like timber, essential oils, pulpwood, herbal tree, etc.
- Statement 3 is correct: The eucalyptus trees are water guzzlers and can make the soil acidic and show allelopathic effects.
Q4. India’s first solar-powered village is located in which of the following states? (Level - Medium)
- Tamil Nadu
- Karnataka
- Rajasthan
- Gujarat
CHECK ANSWERS:-
Answer: d
Explanation:
The Prime Minister of India recently declared Modhera, a village in the Mehsana district of Gujarat as India’s first 24×7 solar-powered village.
Q5. With reference to the British colonial rule in India, consider the following statements: (Level - Medium)
- Mahatma Gandhi was instrumental in the abolition of the system of ‘indentured labour’.
- In Lord Chelmsford’s ‘War Conference’, Mahatma Gandhi did not support the resolution on recruiting Indians for World war.
- Consequent upon the breaking of Salt law by Indian people, the Indian National Congress was declared illegal by the colonial rulers.
Which of the statements given above are correct?
- 1 and 2 only
- 1 and 3 only
- 2 and 3 only
- 1, 2 and 3
CHECK ANSWERS:-
Answer: b
Explanation:
- Statement 1 is correct: Indentured labour system started in India in 1834 and lasted till 1922. It was officially banned in 1917 by British India’s Imperial Legislative Council after pressure from freedom fighters like Mahatma Gandhi.
- Statement 2 is incorrect: In Lord Chelmsford’s ‘War Conference’, Mahatma Gandhi supported the resolution on recruiting Indians for World War, to gain the trust of the British empire, and to attain swaraj.
- Statement 3 is correct: After the breaking of Salt law during the Civil Disobedience movement, the Indian National Congress was declared illegal by the British rulers.
I. UPSC Mains Practice Questions
- FATF plays a pivotal role in tackling money laundering and terror financing. In the light of this statement, examine the functions of FATF and its recent actions against Pakistan. (250 words; 15 marks) (GS-2; International Relations)
- What do you understand by Capital Adequacy Ratio? In the context of Basel-III norms, discuss how RBI monitors the financial stability of a bank. (250 words; 15 marks) (GS-3, Economy)
Read the previous CNA here.
CNA 23 October 2022:- Download PDF Here
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