Current Affairs Compilations for UPSC IAS Prelims 2022

Mains Oriented Articles

GS Paper 2

GS Paper 3

• Recycling permanent magnets for rare earths
• Withdrawal of Rs 2000 notes: The short history of a large note
• Economics of biofuels – Food and feed must be given priority
• Indian toy industry: Unboxing the ‘export turnaround’ in India’s toy story

Prelims Oriented Articles (Factly)

Mains Oriented Articles

GS Paper 2

Our DPI approach is just what the world was seeking

News: Recently, few global organisations have endorsed India’s digital public infrastructure (DPI) approach.  

What is DPI and how India is approaching it?

Which organisations have endorsed India’s DPI?

The Shanghai Cooperation Organisation (SCO) agreed to assess, evaluate, and adopt DPI with an interoperable approach to digital inclusion to the extent possible. 

India and the European Union have agreed to take steps to accelerate the development and deployment of DPI in other countries in an effort to build open, inclusive digital economies and societies around the world. 

The Joint statement from the QUAD and G7 countries formally recognised the transformative power of DPI in supporting sustainable development and delivering economic and social benefits to the people of the Indo-Pacific. 

How DPIs are developed generally?

Digital services can either be developed by private companies or by the government. 

When private companies deliver digital services, their motive is profit and commercialization. They do not focus on a citizen-centric approach.  Further, leaving these services completely to private companies denies governments necessary sovereign control over critical government services. 

Whereas, leaving digital services completely in the hands of the government, results in a level of state surveillance that is unacceptable to most democratic nations. 

Why are various international organisations taking an interest in India’s DPI approach?

India’s DPI offers a better-balanced approach. It combines technology, markets, and governance to create large-scale digital ecosystems that are controlled by countries.  

This approach allows countries to have flexibility while also benefiting from the power of markets and private enterprise. The aim is to promote inclusive and competitive services for their citizens. 

Therefore, this kind of approach is usually looked at by the developing nation because they do not want to be left on the mercy of private players nor do they want to act as a surveillance government by solely taking up the responsibility. 

How will DPI benefit the nations?

By adopting the DPI model, countries can design fully interoperable solutions that meet their specific national requirements using secure, privacy-preserving solutions that is required for large population.  

The DPI approach will also enable countries to maintain control over the systems they build and have the freedom to adjust the underlying protocols according to their specific national objectives.  

Finally, the spread of India’s DPI approach will enable India to play an important role in leading and guiding the world and be a rule maker rather than a rule taker. 

Universal cover – IRDAI’s plans to expand risk protection levels need government backing

News: Insurance Regulatory and Development Authority (IRDA) is devising a “UPI-like moment” in the insurance sector by planning an all-in-one insurance policy.

About India’s insurance sector

Earlier, the Indian insurance sector was a public sector-led industry. But now with the entry of private players, India’s insurance penetration (the ratio of premium payments to GDP) has risen — from 2.7% in 2001-02 to 4.2% in 2021-22. This is a slide in the metric over the past decade from 5.2% in 2009-10. Further, non-life policies are yet to surpass 1% of the total mark.

About the all-in-one insurance policy

What will be the expected benefits of an all-in-one insurance policy?

-State government’s involvement and the creation of state-level insurance committees would help formulate granular district-wise strategies for raising awareness and coverage levels.

-Industry players need to look beyond the top cities and the ‘Bima Vistaar’ scheme could catalyse the volumes they need to get out of their comfort zones.

What more should be done to make all-in-one insurance policy work?

India is a country where one health calamity can push a household below the poverty line. So, the Centre needs to rethink the 18% GST levy on health and life insurance premiums.

The IRDA underwent a nine-month vacuum before the appointment of the current chairmen. To make policies work the government should ensure a continuity of leadership in the IRDA.

Using Buddhism as a tool of soft power

News: Recently, the Global Buddhist Summit took place in New Delhi in April. 

What are some facts about Shakyas after Buddha’s death and its importance for Indian diplomacy? 

The Shakyas who ruled Kapilavastu after Buddha’s Parinirvana did not have an army. Many were massacred. The remaining Shakyas fled to different parts of the country.  

Many also went to the Kathmandu Valley. They were granted a status comparable to that of the Vajracharya priests, but were not permitted to practise priesthood outside of their families.  

Therefore, in Golden Temple Shakyas alternate as temple caretakers and conduct all the rituals. This is one of the few temples in the Kathmandu valley where a 1,000-year-old tradition continues.  

Nepal accepted a grant from the Government of India to renovate portions of the Golden Temple complex. But, it has created a controversy.  

Many locals believe that India was only interested in this project because it is the temple complex most frequently visited by Chinese tourists. 

What are some facts about the Buddhist diplomacy of China? 

China is home to around 245 million Buddhists, 28,000 Buddhist monasteries, 16,000 temples, and 2,40,000 Buddhist monks and nuns. This makes Buddhism an important soft power for China. 

China has added religious overtones to China’s existing portfolio of cultural and linguistic diplomacy. The state religious system is supporting the growing political and economic power of China abroad. 

Beijing pursues a multifaceted and flexible approach to promote Chinese Buddhism abroad. Its approach varies depending on whether the target country is Buddhist-majority, Western, or one of China’s Asian competitors.  

As a source of Buddhism, the Chinese look to Nepal rather than India. The popular temples in Beijing have a connection with Nepal.  

China utilised Buddhist narratives alongside infrastructure investments in Sri Lanka. China would prefer to use its own version of Buddhism as a tool of soft power. 

In Nepal, a popular rumour is that China will send five million Buddhist pilgrims and establish hotels and other businesses through its investment arms as a big soft power push. 

What are some facts about Buddhist diplomacy in India? 

For India, Buddhism provided an identity of peace and tranquillity after independence when there was intense violence and division between Hinduism and Islam.  

There has been usage of Buddhist symbolism as a means of escaping difficult times. Due to such usage and evidence, India likes to claim Buddhism as its own. 

It convened the Global Buddhist Summit in April to promote Tibetan Buddhism and the Dalai Lama. There were no Nepal and Bhutan representatives present.  

The India International Centre for Buddhist Culture and Heritage is coming up in Lumbini, Nepal. Prime Minister laid the foundation stone in May 2022. This could be seen as an attempt to counter the opening of the Gautam Buddha International Airport in Bhairahawa, Nepal. 

India’s overtures of Buddhism in Nepal began only after ‘Buddha is Born in Nepal’ became a populist slogan of sovereignty in Nepal.  

India – Switzerland relationship: Fighting together for a peaceful world

News: The article explains the foreign policy priorities of Switzerland and its convergence with Indian foreign policy. 

What are the foreign policies and priorities of Switzerland at UNSC?

The President of Swiss convened a UNSC open debate on the protection of civilians in zones of armed conflicts.  

There are twin strands in Switzerland’s foreign policy – peace promotion and the protection of civilians in zones of armed conflict. Switzerland has been active in pushing forward these principles. 

The Swiss Foreign Minister chaired a high-level open debate focusing on building mutual trust to promote sustainable peace. It declared that it is time for the Security Council to reflect on its potential for action in the face of the increasing number of crises.

What are the historical reasons behind Switzerland’s peace promotion policy? 

Switzerland itself has not always been a peaceful country. It was ravaged by several civil wars between Catholics and Protestants for a period of up to 300 years.  

The last civil war of 1847 led to deep reflection for the Swiss people and their political leadership. As a result of this, the Swiss people decided to set up inclusive federal institutions to build domestic peace.  

Switzerland’s history helps to explain the choice of the Swiss government’s priorities for its two-year term in the UNSC. 

What are the similarities in foreign policy-related priorities of India and Switzerland? 

The priorities of Switzerland are also the same ones ingrained in ahimsa. It is the Indian religious and ethical principle of not causing harm to other living things. 

India, in whose teachings the non-violence values are rooted, is a natural partner when it comes to Swiss foreign policy priorities. 

There are evident convergences between Swiss and Indian foreign policy priorities. Both of which aim at peace promotion. Peace and harmony are also integral to India’s G20 presidency vision of Vasudhaiva Kutumbakam. 

At this historic moment, Switzerland and India together can contribute greatly to world peace – Switzerland as a non-permanent member of the Security Council in New York, and India by presiding over the G20.

GS Paper 3

Recycling permanent magnets for rare earths

News: Recently, the PM has inaugurated India’s first facility to produce rare earth permanent magnets in Visakhapatnam. The plant is based on indigenous reduction-diffusion technology and produces samarium-cobalt (SaCo) rare earth permanent magnets and neodymium-iron-boron (NdFeB) permanent magnets. 

What is the significance of the Vishakapatnam rare earth permanent magnets plant for India?

The supply chain of rare earths is one of the biggest concerns because China has the highest concentration of rare earth metals which gives it a huge strategic leverage. Therefore, setting up a production facility for permanent magnets in India is a significant step as it will safeguard India from any supply chain disruption. 

Moreover, India’s Make in India initiative has given a boost in the electronics, defence, and aerospace sectors, which has led to an increase in the demand for rare earth permanent magnets. 

Since India is an importer of these metals, setting up such kinds of plants will cater India’s domestic demand while reducing its reliance on China. 

Why is the production of rare earth permanent magnets important?

Rare earth permanent magnets have a wide-range applications in electronics, automobiles, the military, etc. These are also used in new technologies like hypersonic weapons and directed energy systems. 

Compared to ordinary ferrous magnets, rare earth permanent magnets generate a very high magnetic field strength and large amounts of torque. This makes them ideal for applications requiring high-performance, compact and light-weight motors. 

Moreover, a rare earth permanent magnet also has nearly 30 percent of rare earth metals by weight. Recycling them can further benefit India in catering rare earth metal demand. 

How will recycling rare earth permanent magnets benefit India?

According to a report of the United Nations, India was the third-largest country in e-waste generation in 2019. The e-waste generation is expected to increase further in the coming years.  As these permanent magnets contain rare earth metals, recycling them would help in catering to domestic rare earth metal demand in India. 

Given the large amount of e-waste generated in India, recycling them would provide rare earth metals much more than the quantities imported currently. 

What are the concerns present with e-waste collection and recycling? 

E-waste collection and recycling in India suffer from several institutional and management weaknesses. 

Only about 22% of the e-waste generated is collected while the recycling technology employed is primitive and it is mostly about scavenging precious metals like gold and silver. Therefore, improving e-waste collection requires a behavioural change in society.  

What can be the way ahead?

India does not have a recycling plant for permanent magnets. To address this issue, companies from friendly nations can be incentivised to set up recycling facilities in India while efforts can be taken to develop indigenous technology simultaneously. Moreover, recycling plants should adhere to environmental norms as well. 

Note: Neodymium and Dysprosium are two elements required to make permanent magnets, which also contain rare earth metals in it. 

Withdrawal of Rs 2000 notes: The short history of a large note

News: The Reserve Bank of India (RBI) has decided to withdraw the Rs 2000 denomination banknotes from circulation.

Why has the RBI withdrawn Rs 2,000 notes?

What are the issues faced in the economy with Rs 2,000 notes?

The credibility of the monetary system: India’s monetary system has taken a serious credibility hit due to frequent changes and U-turns in currency management.

Automated Teller Machine (ATM) Recalibration: During demonetisation, the 2000 notes had to be printed in larger numbers. The RBI printed the new ₹2,000 notes in a new size. Normally, an ATM contained four cassettes; two cassettes held ₹500 notes and the other two cassettes held ₹1,000 and ₹100 notes. The new ₹2,000 note would not fit into any of these cassettes. Consequently, every one of the 2.2 lakh ATMs in India had to be “re-calibrated”.

Re-calibration was a massive and complex exercise that required coordination across banks, ATM manufacturers, the National Payments Corporation of India, and switch operators. Engineers had to personally visit each ATM and spend between two to four hours with an ATM to complete the re-calibration.

Limited funds during demonetisation: Most of the banks packed all four ATM cassettes with available notes of ₹100. This limited the ATM’s access to citizens. (One ATM could, at the maximum, meet the needs of only 105 people per day as ATM could store currency worth ₹2.1 lakh in ₹100 notes).

When the stock of ₹100 notes was quickly exhausted, banks demanded more from the RBI. The RBI had no option but to supply old and soiled notes that banks had returned to the RBI earlier. Soiled notes often jammed the ATMs and further complicated the issue.

The quality of Rs 2000 notes: According to Ramakumar, many notes were poorly printed; some notes had a shadow of Mahatma Gandhi’s face in addition to the photograph of his face; some others had uneven borders; while others were of varying colour shades and sizes.

The issue of change: There locals in villages do not offer change or a balance payment over transactions in Rs 2000 even today. In effect, the problem of a short supply of notes was exacerbated by the release of the ₹2,000 note.

Can a growing economy have the ₹500 note as the highest denomination?

The highest denomination note in an economy serves as a store of value and is scarcely used in day-to-day transactions. As per capita incomes and inflation rise, the highest denomination note sheds value and becomes a note for day-to-day transactions. The economy would need a new higher denomination note to act as a store of value. This is the reason the RBI had requested the government to let it issue ₹5,000 and ₹10,000 notes in 2014.

The cash-to-GDP ratio in India was 12% in 2015-16 but it rose to 14.5% in 2020-21 and 13.3% in 2021-22. This highlights the value of notes is eroding with inflation, and real interest rates are falling. So, the demand for higher denominations will increase.

Would an e-rupee be a perfect substitute for a larger denomination note?

For that, the digital currency must meet the properties such as anonymity, general purpose use, exchangeability and etc. The RBI has stated that anonymity can be assured only “to a certain degree.” The other properties are still evolving. So, it is hard for a digital currency will emerge as a new store of value in shorter time.

Economics of biofuels – Food and feed must be given priority

News: The government said to achieve the level of ethanol blending in petrol to 20% (E20) by 2025, instead of 2030. But a recent report rules out the availability of enough raw material to reach E20.

About the recent Amendments to the National Policy on Biofuels

Why does India need to revisit its E20 target?

Non-availability of land and low production capability: Brazil, the world’s leading sugar and ethanol producer, are able to grow crops exclusively for biofuel production because they have abundant land. Further, the productivity of these crops in India is lower than the global averages and their use for food and feed has to be given priority.

Not easy to divert food grains: Last year, the Food Corporation of India gave about one million tonnes of subsidised rice to distilleries for ethanol production. But diverting food grains like rice and corn for ethanol production often is not feasible as malnutrition is rampant, and India’s ranking on the global hunger index is low.

Vehicles need modifications: Most of the existing vehicles are, typically, not made to run on high ethanol doped fuels. They would require modifications, even if minor ones.

The level of emission reduction is low: The level of emission reduction achieved by replacing a small part of petrol with ethanol is too meagre to justify additional investment in engine modifications and creating fresh capacities to manufacture E20-compliant autos. According to a NITI Aayog report, the extra cost would be Rs 3,000-5,000 for every four-wheeler and Rs 1,000-2,000 for a two-wheeler.

What should be done to achieve the E20 target?

At present, the bulk of the ethanol is produced by the sugar industry, which has been permitted to utilise all products of sugarcane, including cane juice and finished sugar, for this purpose. To achieve E20 target, India should explore ways to produce ethanol by deploying second-generation (2G) technology. At least four such 2G ethanol plants are already coming up. India needs to set up more such plants.

Indian toy industry: Unboxing the ‘export turnaround’ in India’s toy story

News: India has recently turned a net exporter of toys, during 2020-21 and 2021-22. Between 2018-19 and 2021-22, toy exports increased from ₹812 crore to 1,237 crore. Imports declined from $371 2,593 crore to ₹819 crore.  

How has been the performance of the Indian toy industry?

India’s toy industry is minuscule. In 2015-16, the industry had about 15,000 enterprises. They produced toys valued at ₹1,688 crores and employed 35,000 workers.  

Registered factories accounted for 1% of the number of factories and enterprises. They employed 20% of workers and produced 77% of the value of output.  

Between 2000 and 2016, industry output was halved in real terms with job losses. Imports accounted for up to 80% of domestic sales until recently. Between 2000 and 2018-19, imports rose by nearly three times as much as exports. 

India hardly figures in the global toy trade. Its exports are merely a half-percentage point of total global export.  

What explains the sharp turnaround in the toy trade in just three years?

Imports contracted as the basic customs duty on toys tripled from 20% to 60% in February 2020.  

Numerous non-tariff barriers were imposed as well such as production registration orders and safety regulation codes. It contributed to import contraction. 

How is the scenario of the Indian toy industry different from other countries in Asia? 

Historically, Asia’s successful industrialising nations promoted toy exports for job creation. For example, Japan started about a century ago, China since the 1980s, and currently Vietnam is following in their footsteps.  

India followed an inward-oriented industrial policy in the planning era. It provided a “double protection” by import tariffs and reservation of the product for the small-scale sector. As a result, toy manufacturing remained stagnant, archaic and fragmented.  

In 1997, the reservation policy was abolished. New firms entered the organised sector, but only for a while. Productivity growth improved. But the unorganised sector languished with job losses. 

How do more recent policy initiatives, such as ‘Make in India’, have a bearing on the Indian toy industry? 

There is no evidence of ‘Make in India’ positively affecting the toy industry on a sustained basis. The output of the informal or unorganised sector shrank. But, it continues to account for the majority of establishments and employment. 

Industry de-reservation failed to sustain output, investment, and productivity growth after 2007-08. ‘ 

What is the way forward for the growth of the toy industry?

Neither the reservation policy nor its abolition after the liberal reforms boosted the industry’s performance.  

One should perhaps look beyond simplistic binaries of planning versus reforms. There is a need to examine the ground reality of industrial locations and clusters to make policies and institutions to nurture such industries. 

Prelims Oriented Articles (Factly)

World Energy Investment Report 2023: Clean energy funds rise, but mostly in China, Europe, U.S.

Source: The post is based on the article “Clean energy funds rise, but mostly in China, Europe, U.S.” published in The Hindu on 31st May 2023

What is the News?

The International Energy Agency has released the World Energy Investment Report 2023.

What are the key findings of the World Energy Investment Report 2023?

Investment in clean energy has increased in recent years: Investments in clean energy have surpassed investments in fossil fuels by 70% with the transition mainly fuelled by Electric Vehicles (EVs) and renewable power

– For every dollar spent on fossil fuels, $1.7 is now allocated to clean energy, a significant increase from the 1:1 ratio observed five years ago.

– The report also highlights the influence of recent geopolitical events on the energy market. Specifically, it points out that Russia’s invasion of Ukraine has led to substantial instability in the fossil fuel markets. This volatility has inadvertently accelerated the deployment of various renewable energy technologies, despite triggering an immediate scramble for oil and gas resources.

Clean energy investments concentrated in advanced economies: Over 90% of the surge in clean energy investment since 2021 has been concentrated in advanced economies and China. 

The increases in clean energy investment in these regions since 2021 have outstripped the total clean energy investment in the rest of the world combined.

However, there are other regions that are also demonstrating significant progress. India, for instance, continues to exhibit robust investment in solar energy.

Challenges in transitioning towards clean energy: There are many hurdles for many countries in transitioning towards clean energy such as Higher interest rates, ambiguous policy frameworks, market designs, financially constrained utilities and a high cost of capital are all impeding investment.

France bans short-haul domestic flights: Can curbs on airplane emissions help fight climate change

Source: The post is based on the article “France bans short-haul domestic flights: Can curbs on airplane emissions help fight climate change” published in The Hindu on 31st May 2023

What is the News?

France has announced a ban on domestic short-haul flights where train alternatives exist, in a bid to cut carbon emissions.

About France’s ban on domestic short-haul flights

France has become the first country in the world to impose a ban on short-haul domestic flights.

It has brought a new law which bars air travel to destinations that can be covered by up to two-and-a-half-hour journeys by train. 

However, this move has been criticized as there is no way to ensure that passengers prevented from taking a flight would necessarily travel by train. 

The law can possibly push more people to use their cars to make the journey, thus nullifying whatever little gains that could have accrued by the avoided air travel.

How much does air transport contribute to global CO2 emissions?

Air transport, globally, accounts for just about 2% of global carbon dioxide emissions every year, and less than two per cent of greenhouse gas emissions.

Though the airline industry’s contribution to the overall greenhouse gas emissions is still very small, it is still considered a big worry, mainly due to two reasons: 1) it is generated by a very small fraction of the global population and 2) it is projected to grow at a very fast pace.

Moreover, emissions from international aviation fall in a grey area. The emissions from planes flying within the boundaries of a country are attributed to that country.But emissions from airlines making international flights are not attributable to any country. 

What are the steps taken against greenhouse gas emissions by airlines?

In 2016, the International Civil Aviation Organisation (ICAO) put in place an offset mechanism called CORSIA to ensure that any increase in emissions over 2020 levels is compensated for by the airline industry through investment in carbon-saving projects elsewhere. 

Hackers target Indian organisations with spear phishing

Source: The post is based on the article “Hackers target Indian organisations with spear phishing” published in The Hindu on 31st May 2023

What is the News?

According to a report, as many as 53% of organizations studied in India were victims of spear phishing in 2022.

What is Spear Phishing?

Spear Phishing is an email or electronic communications scam targeted towards a specific individual, organization or business. 

It is a targeted attempt to steal sensitive information such as account credentials or financial information from a specific victim, often for malicious reasons. 

How does Spear Phishing work?

A spear phishing email uses social engineering techniques to urge the victim to click on a malicious link or attachment.

Additionally, the email will blatantly ask the recipient to respond urgently, such as transferring a specific sum of money or sending personal data such as a banking password.

Because the emails are written in a highly familiar tone and refer to personal information about the recipient, victims mistakenly believe they know and trust the sender and respond to the request.

Once the victim completes the intended action, the attacker can steal the credentials of a targeted legitimate user and enter a network undetected.

Can the govt claim immunity when entering contracts under the President’s name? Here’s what SC has ruled

Source: The post is based on the article “Can the govt claim immunity when entering contracts under the President’s name? Here’s what SC has ruled” published in Indian Express on 31st May 2023

What is the News?

The Supreme Court has held that the government, when entering into a contract under the President’s name, cannot claim immunity from the legal provisions of that contract under Article 299 of the Constitution.

What is Article 298 and Article 299 of the Indian Constitution?

Article 298 grants the Centre and the state governments the power to carry on trade or business, acquire, hold, and dispose of property, and make contracts for any purpose.

Article 299 delineates the manner in which these contracts will be concluded. It provides that all contracts made in the exercise of the executive power of the Union or of a State shall be expressed to be made by the President or by the Governor of the State and that all such contracts shall be executed on behalf of the President or the Governor by persons in a manner as directed and authorized by them.

Article 299(2) says that neither the President nor the Governor can be personally held liable for such contracts.

What is the objective behind Article 299 as per the Supreme Court?

According to the 1954 Supreme Court ruling in ‘Chatturbhuj Vithaldas Jasani v. Moreshwar Parashram & Ors’, the objective behind Article 299 is that there must be a definite procedure according to which contracts must be made by agents acting on the government’s behalf.

Otherwise, public funds may be depleted by unauthorized or illegitimate contracts. It implies that contracts not adhering to the manner given in Article 299 cannot be enforced by any contracting party.

What are the Requirements for Government or State Contracts?

In 1966, the Supreme Court in n ‘K.P. Chowdhry v. State of Madhya Pradesh. And Others’ laid down three essential requirements for government contracts under Article 299 to be met before a binding contract against the government could arise.These conditions are:

Firstly, the contract must be expressed to be made by the Governor or the President;

Secondly, it must be executed in writing and;

Thirdly, the execution should be by such persons and in such a manner as the Governor or the President might direct or authorize.

What was the case about and what did the court rule?

A petition was filed by Glock-Asia Pacific Limited in the Supreme Court against the Centre regarding the appointment of an arbitrator by the firm in a dispute regarding a tender.

Glock Asia-Pacific Limited had entered into a contract with the Union home ministry for the supply of pistols. However, after a dispute arose about the invocation of a bank guarantee, the company invoked arbitration and nominated a ​​retired Delhi High Court judge as the sole arbitrator.

However, the Centre cited a condition of the tender which mandated that the dispute had to be referred to the sole arbitration of an officer from the law ministry, who was to be appointed by the home secretary.

Glock challenged the provision in the agreement that enabled the appointment of an officer from the law ministry as the arbitrator.

Note: According to the Arbitration and Conciliation Act, 1996, any person whose relationship with the parties or counsel of the dispute falls under the 7th Schedule (of the Act) will be ineligible to be appointed as an arbitrator.  The 7th Schedule includes relationships where the arbitrator is an employee, consultant, advisor, or has any other past or present business relationship with a party.

On this, the Supreme Court said that a person chosen by the State as an arbitrator must be “impartial and independent” with no past or present professional ties with the government.

The court held that contracts made under Article 299 of the Constitution do not give the government power to break statutory laws.

Hence, the court-appointed former Supreme Court judge, Justice Indu Malhotra, as the sole arbitrator to adjudicate the dispute.

Records from lake sediments of Indus River Valley in Ladakh help reconstruct climate variation 19 to 6 thousand years ago

Source: The post is based on the article “Records from lake sediments of Indus River Valley in Ladakh help reconstruct climate variation 19 to 6 thousand years ago” published in PIB on 31st May 2023

What is the News?

A study has arrived at a conclusion that the cold desert of Ladakh saw a period of monsoon-type rainfall some 17,000 years ago.

Background

Ladakh region in the Trans-Himalaya forms an environmental boundary between the North Atlantic and monsoon forcings. 

Its location is ideal to gain insight into the variations of the atmospheric circulations like westerly and Indian summer monsoon. 

A comprehensive understanding of the variability of these atmospheric circulations is essential, particularly in the wake of global warming.

What is the study conducted on Ladakh?

Birbal Sahni Institute of Palaeosciences has used sediment deposits recovered from ancient lakes in the Indus River valley in Ladakh to retrace climate changes.

The study has found that the cold desert of Ladakh saw a period of monsoon-type rainfall for 900 years (17,400 to 16,500 years ago) within the dominant westerly period.

A cold arid period was followed by a strong monsoon period and subsequent weakening monsoon phase with enhanced El Nino activities.

Alternative to UPI, NEFT, RTGS: What is RBI’s planned ‘lightweight’ payments system for emergencies?

Source: The post is based on the article “Alternative to UPI, NEFT, RTGS: What is RBI’s planned ‘lightweight’ payments system for emergencies?” published in Indian Express on 31st May 2023

What is the News?

The Reserve Bank of India(RBI) has conceptualized a Lightweight Payment and Settlements System.

What is the Lightweight Payment and Settlement System (LPSS)?

Lightweight Payment and Settlement System (LPSS) aims to ensure that the processing of transactions continues without disruption during catastrophic events such as natural calamities and war. 

The system is expected to keep the liquidity pipeline of the economy alive and ensure economic stability. This system can be operated from anywhere by a bare minimum of staff.

This new payment system will be independent of conventional technologies used for existing payment systems such as RTGS, NEFT, and UPI. 

Why is there a need for a Lightweight Payment and Settlement System (LPSS)?

According to RBI, existing conventional payment systems such as RTGS, NEFT, and UPI are designed to handle large volumes of transactions while ensuring sustained availability.

As a result, they are dependent on complex wired networks backed by advanced IT infrastructure.

However, catastrophic events like natural calamities and war have the potential to render these payment systems temporarily unavailable by disrupting the underlying information and communication infrastructure.

Hence, it is prudent to be prepared to face such extreme and volatile situations. In this context, a Lightweight Payment and Settlement System (LPSS) is being planned.

What are the expected benefits of the Lightweight Payment and Settlement System (LPSS)?

Firstly, the lightweight and portable payment system is expected to operate on minimalistic hardware and software and would be made active only on a need basis. Hence, it would ensure near-zero downtime of the payment and settlement system in the country and keep the liquidity pipeline of the economy alive and intact.

Secondly, the system is expected to process transactions that are critical to ensure the stability of the economy, including government and market-related transactions.