Current Affairs 11 August 2023

CONTENTS

1. RBI monetary policy update
2. NCLT clears Zee-Sony deal
3. Dam Safety and Water Resource Management in India
4. CBI Academy Joins Interpol Global Academy Network
5. NASA and DARPA Partner for Faster Mars Travel: Introducing the DRACO Project
6. Amazon Cooperation Treaty Organization
7. Conjunctivitis

RBI Monetary Policy Update

Context:

On expected lines, the Reserve Bank of India (RBI) left the repo rate unchanged at 6.5% for the third time in a row amid concerns over rise in inflation.

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Recent Monetary Policy and RBI Decisions
2. Instruments of Monetary Policy
3. About Monetary Policy Committee (MPC)

Recent Monetary Policy and RBI Decisions:

Policy Repo Rate and CRR:

• The Monetary Policy Committee (MPC) maintained the policy repo rate at 6.5%.
• The Cash Reserve Ratio (CRR) remained unchanged at 4.5%.

Incremental Cash Reserve Ratio (I-CRR):

• RBI directed banks to maintain an I-CRR of 10% to manage excess liquidity.
• This move aims to withdraw surplus liquidity from the banking system, amounting to over Rs 1 lakh crore.

Inflation and Monetary Stance:

• RBI continues with its “withdrawal of accommodation” stance, indicating a cautious approach until inflation risks subside.

Conversational Payments on UPI:

• RBI proposed the introduction of “conversational payments” on UPI.
• Users can interact with an AI-powered system to initiate and complete transactions.
• The feature will initially support conversations in Hindi and English.

Offline Transactions with NFC:

• RBI plans to enable offline transactions using Near Field Communication (NFC) technology.
• This innovation will facilitate payments in scenarios with weak connectivity.

Increased Transaction Limit for Small Value Payments:

• Per transaction limit raised to Rs 500 from Rs 200 for small value digital payments in offline mode.
• Applicable to National Common Mobility Card and UPI Lite.

Instruments of Monetary Policy

There are several direct and indirect instruments that are used for implementing monetary policy.

• Repo Rate: The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the liquidity adjustment facility (LAF).
• Reverse Repo Rate: The (fixed) interest rate at which the Reserve Bank absorbs liquidity, on an overnight basis, from banks against the collateral of eligible government securities under the LAF.
• Liquidity Adjustment Facility (LAF): The LAF consists of overnight as well as term repo auctions. Progressively, the Reserve Bank has increased the proportion of liquidity injected under fine-tuning variable rate repo auctions of range of tenors. The aim of term repo is to help develop the inter-bank term money market, which in turn can set market based benchmarks for pricing of loans and deposits, and hence improve transmission of monetary policy. The Reserve Bank also conducts variable interest rate reverse repo auctions, as necessitated under the market conditions.
• Marginal Standing Facility (MSF): A facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR) portfolio up to a limit at a penal rate of interest. This provides a safety valve against unanticipated liquidity shocks to the banking system.
• Corridor: The MSF rate and reverse repo rate determine the corridor for the daily movement in the weighted average call money rate.
• Bank Rate: It is the rate at which the Reserve Bank is ready to buy or rediscount bills of exchange or other commercial papers. The Bank Rate is published under Section 49 of the Reserve Bank of India Act, 1934. This rate has been aligned to the MSF rate and, therefore, changes automatically as and when the MSF rate changes alongside policy repo rate changes.
• Cash Reserve Ratio (CRR): The average daily balance that a bank is required to maintain with the Reserve Bank as a share of such per cent of its Net demand and time liabilities (NDTL) that the Reserve Bank may notify from time to time in the Gazette of India.
• Statutory Liquidity Ratio (SLR): The share of NDTL that a bank is required to maintain in safe and liquid assets, such as, unencumbered government securities, cash and gold. Changes in SLR often influence the availability of resources in the banking system for lending to the private sector.
• Open Market Operations (OMOs): These include both, outright purchase and sale of government securities, for injection and absorption of durable liquidity, respectively.
• Market Stabilisation Scheme (MSS): This instrument for monetary management was introduced in 2004. Surplus liquidity of a more enduring nature arising from large capital inflows is absorbed through sale of short-dated government securities and treasury bills. The cash so mobilised is held in a separate government account with the Reserve Bank.

About Monetary Policy Committee (MPC)

• The Monetary Policy Committee (MPC) is the body of the RBI, headed by the Governor, responsible for taking the important monetary policy decisions about setting the repo rate.
• Repo rate is ‘the policy instrument’ in monetary policy that helps to realize the set inflation target by the RBI (at present 4%).

Membership of the MPC

• The Monetary Policy Committee (MPC) is formed under the RBI with six members.
• Three of the members are from the RBI while the other three members are appointed by the government.
• Members from the RBI are the Governor who is the chairman of the MPC, a Deputy Governor and one officer of the RBI.
• The government members are appointed by the Centre on the recommendations of a search-cum-selection committee which is to be headed by the Cabinet Secretary.

Objectives of the MPC

Monetary Policy was implemented with an initiative to provide reasonable price stability, high employment, and a faster economic growth rate.

The major four objectives of the Monetary Policy are mentioned below:

• To stabilize the business cycle.
• To provide reasonable price stability.
• To provide faster economic growth.
• Exchange Rate Stability.

-Source: Indian Express

NCLT Clears Zee-Sony deal

Context:

The National Company Law Tribunal approved the merger of Zee Entertainment Enterprises with Culver Max Entertainment (formerly Sony Pictures Networks India).

Relevance:

GS III: Indian Economy

Dimensions of the Article:

1. Sony-Zee Merger: Uniting Media Giants
2. National Company Law Appellate Tribunal (NCLAT)
3. National Company Law Tribunal (NCLT)

Sony-Zee Merger: Uniting Media Giants

Merger Initiation:

• In 2021, Sony Pictures Networks India and ZEEL embarked on a merger journey, targeting consolidation of linear networks, digital assets, and production operations.
• A non-binding term sheet was signed to pave the way for integration.

Ownership Structure:

• Under the arrangement scheme, Sony will hold an indirect 50.86% stake in the combined entity.
• Zee’s founder secures approximately 4% ownership, while the remaining shares belong to ZEEL’s other shareholders.
• Shareholder Assent and Regulatory Approvals:
• Shareholders of ZEEL greenlit the merger, supporting the move.
• Regulatory clearances from BSE, NSE, and Competition Commission of India were prerequisites for the merger.

NCLT Intervention and Challenge:

• The National Company Law Tribunal (NCLT) instructed NSE and BSE to reconsider their prior approvals for the merger of ZEEL and Culver Max Entertainment.
• ZEEL contested the NCLT order before the appellate tribunal (NCLAT), asserting insufficient opportunity to present its viewpoint.
• ZEEL argued that NCLT lacks jurisdiction over non-compete matters.

NCLAT’s Verdict:

• In May 2023, NCLAT overturned the NCLT’s order, nullifying the directive to NSE and BSE to reevaluate their approval for the Zee-Sony merger.

National Company Law Appellate Tribunal (NCLAT)

• NCLAT, established under the Companies Act, 2013, serves as a quasi-judicial entity in India.
• It hears appeals against rulings issued by the National Company Law Tribunal (NCLT).
• Founded in 2016, the NCLAT’s headquarters is located in New Delhi.
• It holds the status of the second-highest forum for company law disputes, following the Supreme Court.

Jurisdiction and Authority:

• NCLAT’s decisions are binding and conclusive, and its orders can only be contested in the Supreme Court.
• It possesses the authority to entertain appeals pertaining to insolvency, bankruptcy, mergers, acquisitions, and various company law matters.
• NCLAT assumes the role of an Appellate Tribunal for Competition Commission of India (CCI) orders and National
• Financial Reporting Authority matters.

Composition:

• NCLAT is led by a Chairperson and comprises judicial and technical members, all appointed by the Central Government.

National Company Law Tribunal (NCLT)

• NCLT operates as a quasi-judicial authority, mandated to address civil disputes under the Companies Act.
• The bench consists of a Judicial member, usually a retired or serving High Court Judge, and a Technical member from the Indian Corporate Law Service.

Primary Functions:

• NCLT adjudicates corporate law issues, encompassing disputes between companies and stakeholders, alongside handling insolvency and bankruptcy cases.

Diverse Responsibilities:

• Resolving proceedings linked to the Companies Act, such as arbitration, arrangements, compromise, reconstruction, and company winding-up.
• Serving as the Adjudicating Authority for insolvency proceedings as per the Insolvency and Bankruptcy Code, 2016.
• Handling cases pending before the Board for Industrial and Financial Reconstruction (BIFR) and under the Sick Industrial Companies (Special Provisions) Act, 1985.
• Assimilating cases from the Appellate Authority for Industrial and Financial Reconstruction.

-Source: Indian Express

Dam Safety and Water Resource Management in India

Context:

Recently, the Minister of State for Jal Shakti has shed light on India’s significant strides in the realm of dam safety and water resource management.

Relevance:

GS III: Infrastructure

Dimensions of the Article:

1. Highlighted Initiatives for Dam Safety and Water Resource Management in India
2. Overview of Indian Dams
3. Challenges in Dam Safety and Water Resource Management

Highlighted Initiatives for Dam Safety and Water Resource Management in India

Enactment of the Dam Safety Act, 2021:

• Introduced by the Union Government to address dam safety concerns.
• Emphasizes surveillance, inspection, operation, and maintenance of specific dams.
• Goal is to prevent dam failure disasters and establish a safe operational framework.

National Committee on Dam Safety (NCDS):

• Establishment of a national-level committee dedicated to dam safety.
• Responsible for shaping dam safety policies and suggesting essential regulations.
• Acts as a central platform to ensure consistent safety standards.

National Dam Safety Authority (NDSA):

• Creation of a regulatory body, the NDSA, to oversee dam safety.
• Tasked with implementing policies set by the National Committee on Dam Safety.
• Provides technical support to State Dam Safety Organizations (SDSO) and resolves inter-state disputes.

Empowerment of State Governments:

• State Governments empowered to form State Committee on Dam Safety.
• Establishment of State Dam Safety Organizations to enforce safety standards.
• Offers essential guidance to dam owners on safety protocols and necessary corrective measures.

National Hydrology Project (NHP):

• Comprises four main components: Water Resources Monitoring System, Water Resources Information System, Water Resources Operations and Planning System, and Institutional Capacity Enhancement.
• Aims to enhance water resource management capabilities across the nation.
• Supports flood forecasting studies conducted by implementing agencies.

Overview of Indian Dams

• Total Dams: India boasts a considerable number of dams, with a total of 5,745 dams in its territory.
• Completed and Under Construction: Among these, 5,334 dams have been completed, while an additional 411 dams are currently under construction.
• Global Ranking: India holds the impressive rank of third globally in terms of its extensive efforts in constructing large dams.
• Tehri Dam: Among the notable dams, the Tehri Dam stands out. Located in Uttarakhand, it secures the title of being the tallest dam in India. This imposing structure is situated on the Bhagirathi River.
• Hirakud Dam: The Hirakud Dam, situated on the Mahanadi River in Odisha, takes the distinction of being the longest dam in India.
• Oldest Dam: The Kallanai Dam, which spans the Kaveri River in Tamil Nadu, holds the honor of being the oldest dam in India. With a history spanning around 2000 years, it showcases the enduring engineering prowess of ancient India.

Challenges in Dam Safety and Water Resource Management

• Seismic Vulnerability: Many regions in India are prone to seismic activity, raising concerns about potential earthquakes affecting the stability of dams.
• Soil and Geological Conditions: Unstable soil quality and geological conditions in certain areas create obstacles in ensuring dam safety.
• Aging Infrastructure: Numerous dams in India are aging and may not meet modern safety standards. Ensuring maintenance and rehabilitation of these structures is crucial to prevent failures.
• Climate Change Impact: Changing climate patterns and increased extreme weather events, such as heavy rainfall and floods, strain dams and reservoirs, leading to overtopping or potential failure.
• Transboundary Rivers: Shared rivers with neighboring states or countries require collaborative efforts for dam safety and water management. Disputes and lack of cooperation can hinder effective dam management.
• Communication and Emergency Preparedness: Establishing communication networks, evacuation plans, and emergency shelters near dams is essential to manage potential disasters.
• Community Displacement: Construction or operation of dams often necessitates the displacement of local communities, highlighting challenges in ensuring proper resettlement and rehabilitation.

-Source: The Hindu, PIB

CBI Academy Joins Interpol Global Academy Network

Context:

The Central Bureau of Investigation (CBI) Academy, a key player in crime investigation and law enforcement training, has joined the Interpol Global Academy Network as its 10th member.

Relevance:

GS II: International Relations

Dimensions of the Article:

1. Interpol Global Academy Network
2. Interpol
3. CBI Academy: Nurturing Excellence in Investigative Training
4. Central Bureau of Investigation (CBI)

Interpol Global Academy Network

The Interpol Global Academy Network, introduced by Interpol in 2019, is a forward-looking initiative designed to bolster Interpol’s role as a leader in global law enforcement training. This collaborative network is driven by the following key objectives:

Academic Collaboration:

• Encouraging law enforcement training institutions worldwide to collaborate on various fronts.
• Facilitating the development and implementation of joint training programs and research projects.

Sharing Best Practices and Resources:

• Fostering the exchange of best practices, resources, and knowledge among member institutions.
• Enhancing the efficiency and effectiveness of law enforcement training globally.

Expertise Exchange:

• Creating a platform for the exchange of expertise, insights, and experiences among law enforcement professionals and trainers.
• Harnessing collective wisdom to address evolving challenges in law enforcement.

Promoting Academic Excellence and Innovation:

• Establishing benchmarks for academic excellence within law enforcement training.
• Encouraging innovation and the integration of cutting-edge methodologies in training programs.

Quality Standards and Accreditation:

• Developing robust quality standards to ensure the delivery of high-caliber training across the network.
• Introducing accreditation mechanisms to validate the credibility and effectiveness of training institutions.

Recognition Systems:

• Designing systems to recognize the achievements and contributions of member institutions.
• Highlighting institutions that excel in law enforcement training and making their accomplishments visible.

Interpol

• The International Criminal Police Organization (ICPO), commonly known as INTERPOL, is an international organization that facilitates worldwide police cooperation and crime control.
• Headquartered in Lyon, it has seven regional bureaus worldwide and a National Central Bureau in all 194 member states, making it the world’s largest police organization.
• INTERPOL provides investigative support, expertise, and training to law enforcement worldwide, focusing on three major areas of transnational crime: terrorism, cybercrime, and organized crime.
• Its broad mandate covers virtually every kind of crime, including crimes against humanity, child pornography, drug trafficking and production, political corruption, copyright infringement, and white-collar crime.
• The agency also facilitates co-operation among national law enforcement institutions through criminal databases and communications networks.
• Contrary to popular belief, INTERPOL is itself not a law enforcement agency.
• INTERPOL is mostly funded by annual contributions by member police forces in 181 countries.
• It is governed by a General Assembly, composed of all member countries, which elects the Executive Committee and the President.
• Pursuant to its charter, INTERPOL seeks to remain politically neutral in fulfilling its mandate, as it is barred from interventions or activities of a political, military, religious, or racial nature or involving itself in disputes over such matters.
• The agency operates in four languages: Arabic, English, French, and Spanish.
• The Central Bureau of Investigation (CBI) is the nodal agency in the INTERPOL for India.

CBI Academy: Nurturing Excellence in Investigative Training

• The CBI Academy stands as a distinguished training institution catering to the Central Bureau of Investigation (CBI), India’s foremost investigative agency.
• Established in 1996 and situated in Ghaziabad, Uttar Pradesh, the academy plays a pivotal role in advancing professionalism, integrity, and devotion to national service within the CBI.

Key features of the CBI Academy include:

Training Excellence:

• Focused on elevating standards of proficiency, fairness, and dedication among CBI personnel.
• Conducts diverse training programs covering cybercrime, financial crime, counter-terrorism, environmental crime, anti-corruption, human rights, and forensic science.

Collaborations and Partnerships:

• Collaborates with international entities like the US Department of Homeland Security, French Embassy, and Interpol.
• Engages in joint training initiatives and research projects to enhance investigative expertise.

Regional Expansion:

• Extends its reach through three Regional Training Centres (RTCs) located in Kolkata, Chennai, and Mumbai.
• Broadens training infrastructure and access to its specialized programs.

Central Bureau of Investigation (CBI):

• Establishment: Founded in 1963 as recommended by the Santhanam Committee on Prevention of Corruption.
• Organizational Affiliation: Transferred from the Ministry of Home Affairs to the Ministry of Personnel, Public Grievances, and Pensions, operating as an attached office.
• Legal Framework: Operates under the Delhi Special Police Establishment (DSPE) Act, 1946, with neither constitutional nor statutory status.
• Investigative Scope: Tasked with probing cases encompassing governmental corruption, breaches of central laws, multi-state organized crime, and multi-agency or international matters.

-Source: The Hindu

NASA and DARPA Partner for Faster Mars Travel: Introducing the DRACO Project

Context:

In a joint effort, NASA and the United States Defense Advanced Research Projects Agency (DARPA) are actively pursuing the development of a nuclear propulsion system with the potential to halve the duration of travel to Mars. This bold undertaking, titled the Demonstration Rocket for Agile Cislunar Operations (DRACO), is on track for launch in either late 2025 or the early months of 2026.

Relevance:

GS III: Science and Technology

Dimensions of the Article:

1. DRACO: Revolutionizing Space Travel through Nuclear Propulsion
2. Historical Background of Nuclear Propulsion and DRACO’s Distinctions
3. Mars: The Red Planet Unveiled

DRACO: Revolutionizing Space Travel through Nuclear Propulsion

DRACO introduces a paradigm shift in space travel by leveraging nuclear propulsion for enhanced efficiency and reduced travel times between celestial bodies.

Nuclear Reactor Power:

• DRACO centers around a nuclear reactor utilizing energy from uranium atom fission.
• Aims to capitalize on the immense energy generated by nuclear reactions for propulsion.

Transformation of Space Travel:

• Acceleration and Speed Boost: Unlike conventional chemical rockets, nuclear reactions offer significantly greater energy output, enabling continuous acceleration during the journey.
• Shorter Travel Times: DRACO’s accelerated acceleration could drastically reduce travel durations to distant destinations such as Mars.
• Improved Fuel Efficiency: Nuclear propulsion systems require less propellant, leading to enhanced fuel efficiency and decreased travel duration.

Benefits of DRACO:

• Minimized Exposure Risks: Faster travel translates to reduced exposure of astronauts to the hazards of deep space, such as radiation and isolation.
• Mitigation of Health Hazards: Quicker journeys can potentially alleviate health risks associated with prolonged space travel.

Potential Military Applications:

• Versatility Beyond Space Exploration: DARPA’s participation hints at potential terrestrial applications, including rapid maneuvering of military satellites in Earth’s orbit.

Safety Considerations in Nuclear Space Propulsion

Radiation Risks:

• One of the foremost concerns linked to nuclear space propulsion is the possibility of accidents or malfunctions releasing radioactive substances into space or Earth.
• These incidents could result in severe environmental and health repercussions.

Launch Hazards:

• Launching spacecraft with nuclear fuel onboard introduces the risk of launch failures or explosions, potentially dispersing radioactive materials over a wide area.

Historical Background of Nuclear Propulsion and DRACO’s Distinctions

Past Projects:

• Projects such as Orion, Rover, and NERVA previously explored nuclear-powered propulsion systems, though they were not fully realized.
• Project Orion contemplated using atomic bomb detonations for acceleration, while Project NERVA aimed to develop nuclear-thermal engines akin to DRACO.

DRACO’s Advancements:

• Fuel Enrichment: In contrast to Project NERVA’s use of weapons-grade uranium, DRACO employs a less-enriched uranium form, enhancing safety and reducing radioactive material risks.
• In-Space Activation: DRACO’s nuclear reactor remains inactive until reaching space, minimizing chances of radioactive accidents during launch or on Earth.

Mars: The Red Planet Unveiled

Mars, the fourth planet from the Sun in our solar system, is renowned as the “Red Planet” due to its distinctive reddish hue attributed to the presence of iron oxide (rust) on its surface.

Atmospheric Composition:

• Mars possesses a thin atmosphere primarily comprising carbon dioxide (95.3%).
• Traces of nitrogen and argon are also found within its atmospheric makeup.

Prominent Surface Features:

• Olympus Mons: This colossal shield volcano is recognized as the largest of its kind in the entire solar system.
• Valles Marineris: A monumental system of canyons etched across the planet’s surface, showcasing the scale of Mars’ geological wonders.
• Polar Ice Caps: Mars bears polar ice caps consisting of water and frozen carbon dioxide (dry ice), representing unique features at its poles.
• Dusty Terrain: The planet’s surface is characterized by a layer of fine dust and scattered rocks, contributing to its distinctive appearance.

Liquid Water and Historical Traces:

• While liquid water is uncommon on Mars today, compelling evidence suggests the occurrence of past liquid flows, offering tantalizing hints of the planet’s ancient hydrological history.

-Source: The Hindu

Amazon Cooperation Treaty Organization

Context:

Recently, assembling in the Brazilian city of Belem, the members of the Amazon Cooperation Treaty Organization sought to chart a common course on how to combat climate change.

Relevance:

GS II: International Relations

Dimensions of the Article:

1. Amazon Cooperation Treaty Organization
2. The Amazon Rainforest

Amazon Cooperation Treaty Organization

Formation and Purpose:

• The Amazon Cooperation Treaty Organization (ACTO) is an intergovernmental entity established by eight Amazonian countries through the signing of the Amazon Cooperation Treaty (ACT).
• The Amazon Cooperation Treaty was crafted and formally endorsed on July 3, 1978.

Evolution and Membership:

• In 1995, recognizing the importance of unified action, the eight nations elevated their collaboration by creating the Amazon Cooperation Treaty Organization (ACTO).
• The member countries include Bolivia, Brazil, Colombia, Ecuador, Guyana, Peru, Suriname, and Venezuela.

Foundational Objectives:

• ACTO was established with the primary goal of advancing the preservation of the Amazon basin and guiding Amazonian development through international cooperation.
• It stands as a unique socio-environmental bloc within the Latin American region.

Multi-Faceted Approach:

• ACTO operates on multiple fronts within the framework of the ACT’s implementation.
• It engages in political-diplomatic, strategic, and technical activities, fostering synergy among governments.

Linguistic Diversity:

• ACTO accommodates linguistic diversity by adopting four official languages: Dutch, English, Portuguese, and Spanish.

Collaborative Framework:

• The Directorate of the Permanent Secretariat takes the lead, coordinating and executing activities while closely collaborating with Member Countries.
• Consultations and close cooperation ensure effective project planning and execution.

The Amazon Rainforest:

Geographical Scope:

• The Amazon Rainforest is an expansive tropical rainforest that extends across the drainage basin of the Amazon River and its interconnected tributaries in the northern region of South America.

Natural Boundaries:

The rainforest’s expanse is delineated by distinct geographic features:

• To the north lies the Guiana Highlands.
• The Andes Mountains stand to the west.
• The Brazilian central plateau marks its southern border.
• The Atlantic Ocean borders the rainforest to the east.

-Source: Indian Express

Conjunctivitis

Context:

Conjunctivitis cases have been surging in India during the monsoon season, as the high humidity and rainfall create a favorable environment for the transmission of the infection.

Relevance:

GS II: Health

Conjunctivitis (Pink Eye)

Conjunctivitis, commonly known as Pink Eye, is an infection or inflammation of the conjunctiva, the transparent membrane that covers the eyelid and eyeball.

• Pink Appearance: Swollen and irritated blood vessels in the conjunctiva make the eyes’ whites appear reddish or pink.
• Causative Agents: Conjunctivitis can be caused by viruses, bacteria, or allergies. Bacterial and viral types are highly contagious, while allergic conjunctivitis is not.
• Transmission: It spreads through direct or indirect contact. Direct transmission occurs through droplets from coughs or sneezes of infected individuals or hand-to-eye contact. Indirect transmission happens via shared personal items like towels, makeup, pillows, or contact lenses.
• Signs and Symptoms: Common signs include redness, swelling, and itching in the eyes. The eyes may also become watery during the early stages.
• Treatment: Treatment involves a combination of medicines. Artificial tears or lubricating eye drops help maintain moisture. Warm or cold compresses provide relief from inflammation and swelling. Proper care can alleviate discomfort and aid recovery.

-Source: Indian Express