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Archives (PRELIMS & MAINS Focus)   ANTIMICROBIAL RESISTANCE (AMR)  Syllabus Prelims & Mains – SCIENCE & TECHNOLOGY Context: Ahead of the September 26 UN General Assembly High-Level Meeting on antimicrobial resistance, the World Health Organization last week published its first-ever guidance on antibiotic pollution from manufacturing. Background: – AMR — and consequently, the creation of “superbugs” — affects healthcare everywhere, but has especially poor outcomes in patients suffering from multiple diseases. Key takeaways Antimicrobial resistance (AMR) is a significant global health threat that occurs when microorganisms such as bacteria, viruses, fungi, and parasites evolve to resist the effects of antimicrobial drugs like antibiotics, antivirals, antifungals, and antiparasitics. This resistance makes infections harder to treat, leading to prolonged illness, higher medical costs, and increased mortality. Causes of AMR: Misuse and Overuse of antimicrobials: The primary drivers of AMR are the misuse and overuse of antimicrobials in humans, animals, and agriculture. For example, using antibiotics for viral infections or not completing prescribed antibiotic courses can contribute to resistance. Excessive use of antimicrobial drugs can lead to the creation of resistant or extremely resistant superbugs, which can circulate in hospitals, through drinking water, or sewers. Infections caused by these pathogens will not respond to commonly prescribed antibiotics. Poor Infection Control: Inadequate infection prevention and control practices in healthcare settings can also accelerate the spread of resistant microorganisms. Impact on Health: Treatment Challenges: AMR makes common infections harder to treat and increases the risk of disease spread, severe illness, and death. It also complicates medical procedures like surgeries and cancer treatments, which rely on effective antimicrobials to prevent infections. Economic Burden: The economic impact of AMR is substantial, with significant healthcare costs and potential losses in global GDP. Preventive Measures: Infection Prevention: Enhancing infection prevention and control measures in healthcare settings and communities. Vaccination: Promoting vaccination to reduce the need for antimicrobials by preventing infections. Global Collaboration: International cooperation is essential to tackle AMR effectively, as resistant pathogens do not respect borders. Source: Indian Express CYBER SECURITY  Syllabus Prelims & Mains – CURRENT EVENT, GS 3 Context: Recently, Home minister Shah inaugurated four Indian Cybercrime Coordination Centre (I4C) platforms — Cyber Fraud Mitigation Centre (CFMC), the ‘Samanvaya’ platform, a Cyber Commandos programme and a Suspect Registry. Background: – Cyber security is no longer limited to the digital world and has become an important aspect of national security. Key takeaways The changing geo-political and economic shifts have compelled the Indian government to take active steps to evolve in cyberspace. This includes strengthening internal safety and security under the Ministry of Home Affairs, investment in defence infrastructure, and having bilateral agreements with countries across the globe, to remain coordinated and have defensive-offensive strategies for the interest of the nation, its citizens, and the industry. The I4C, established in 2018, is a department under the Ministry of Home Affairs (MHA) tasked with establishing a national-level coordination centre to address cybercrime-related issues. Home minister Shah inaugurated four I4C platforms — Cyber Fraud Mitigation Centre (CFMC), the ‘Samanvaya’ platform, a Cyber Commandos programme and a Suspect Registry. Cyber Fraud Mitigation Centre (CFMC) The Cyber Fraud Mitigation Centre (CFMC) has been established at the Indian Cybercrime Coordination Centre (I4C) in New Delhi. It involves representatives from major banks, financial intermediaries, payment aggregators, telecom service providers, IT intermediaries, and law enforcement agencies from various states and union territories. The primary goal of CFMC is to facilitate immediate action and seamless cooperation to tackle online financial crimes. This initiative exemplifies “Cooperative Federalism” in law enforcement. Samanvaya Platform (Joint Cybercrime Investigation Facilitation System) The Samanvaya Platform is a web-based module designed to act as a one-stop portal for cybercrime data repository, data sharing, crime mapping, data analytics, and cooperation among law enforcement agencies across the country. It aims to streamline the process of cybercrime investigation and enhance coordination among various agencies. Cyber Commandos Programme The Cyber Commandos Programme involves the creation of a special wing of trained “Cyber Commandos” within states, union territories, and central police organizations. These commandos are trained to counter cyber security threats and assist in securing the digital space. The programme aims to bolster the cyber defense capabilities of the country. Suspect Registry In the Suspect Registry system, the I4C will share a list of all the repeat offenders in their server, which can be accessed by police personnel of any state and also by the bank officials before opening bank accounts. Source: PIB NATIONAL BOARD FOR WILDLIFE (NBWL)  Syllabus Prelims & Mains – ENVIRONMENT Context: The standing committee of the National Board for Wildlife (SC-NBWL) has cleared multiple projects – a transmission line in Little Rann of Kutch, a controversial transmission line project in Goa’s Mollem national park as well as a clutch of infrastructure projects in tiger corridors of central India, among others. Background: The NBWL is primarily responsible for promotion and conservation of wildlife. About National Board for Wildlife (NBWL) The National Board for Wildlife (NBWL) is a statutory organization under the Wildlife Protection Act, 1972. It was constituted in 2003, replacing the Indian Board for Wildlife, which was formed in 1952. Chaired by the Prime Minister of India, it serves as the top advisory body on matters concerning wildlife conservation and protection. Key Functions: Policy and Planning: The NBWL is responsible for formulating policies and plans for the conservation of wildlife and forests in India. Approval of Projects: It evaluates projects like construction, mining, or development activities in or around protected areas such as national parks and wildlife sanctuaries. No project can be carried out in such areas without NBWL’s clearance. Advisory Role: It advises the central and state governments on wildlife-related issues, including the creation and management of protected areas. Conservation of Endangered Species: The NBWL plays a significant role in identifying and protecting endangered species. It helps in creating programs and laws to ensure their protection. Monitoring Protected Areas: It oversees the functioning of national parks, wildlife sanctuaries, and biosphere reserves, ensuring their proper management. Safeguarding Biodiversity: The board promotes measures for the conservation of biodiversity, aligning with international treaties like the Convention

Archives (PRELIMS & MAINS Focus)   Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY)  Syllabus Prelims & Mains – CURRENT EVENT Context:  The Union Cabinet cleared the expansion of the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) to provide health coverage to all senior citizens aged 70 years and above irrespective of their income. Background: – Ayushman Bharat was launched as recommended by the National Health Policy 2017, to achieve the vision of Universal Health Coverage (UHC). About Ayushman Bharat Ayushman Bharat adopts a continuum of care approach, comprising of two inter-related components, which are – Health and Wellness Centres (HWCs) Pradhan Mantri Jan Arogya Yojana (PM-JAY) About AB PM – JAY: Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB PM-JAY) is a flagship health insurance scheme launched by the Government of India in 2018 under the broader Ayushman Bharat Mission. It aims to provide financial protection to economically vulnerable families by offering free healthcare services through a health insurance model. Key Features AB PM-JAY is the largest publicly funded health insurance scheme globally, aiming to cover over 12 crores poor and vulnerable families (approximately 55 crore beneficiaries) that form the bottom 40% of the Indian population. PM-JAY is fully funded by the Government and cost of implementation is shared between the Central and State Governments. Insurance Coverage: Each eligible family receives annual health insurance coverage of up to ₹5 lakh for secondary and tertiary care hospitalization. Cashless and Paperless Access: The scheme provides cashless treatment at public and empaneled private hospitals, covering over 1,500 procedures, including critical illnesses like cancer, heart disease, and kidney ailments. It covers up to 3 days of pre-hospitalization and 15 days post-hospitalization expenses such as diagnostics and medicines. There is no restriction on the family size, age or gender. Nationwide Implementation: The scheme is implemented across all states and union territories, with both urban and rural poor beneficiaries identified based on the Socio-Economic Caste Census (SECC) 2011 data. Empanelment of Hospitals: Public and private hospitals are empaneled to deliver services, making quality healthcare accessible even in remote areas. Benefits of the scheme are portable across the country i.e. a beneficiary can visit any empanelled public or private hospital in India to avail cashless treatment. Public hospitals are reimbursed for the healthcare services at par with the private hospitals. Objectives Reduce Out-of-Pocket Expenditure (OOPE): AB PM-JAY is designed to reduce the financial burden on poor families by covering expensive treatments that often push households into poverty. Access to Quality Healthcare: By empaneling private hospitals and offering treatment for a wide range of diseases, the scheme aims to ensure access to quality healthcare for all beneficiaries. Strengthen Health Infrastructure: The scheme incentivizes investment in healthcare infrastructure, especially in underserved areas, by promoting the empanelment of private hospitals. Universal Health Coverage (UHC): It is a step towards achieving UHC by ensuring financial protection for healthcare services, in line with the global Sustainable Development Goal (SDG) 3 (Good Health and Well-being). Source: Indian Express FUNDAMENTAL DUTIES  Syllabus Prelims & Mains – POLITY Context: Effectuation of fundamental duties is and will always be a continuing task, calling for duty-specific legislations, schemes and supervision, Attorney General R Venkataramani told the Supreme Court recently. Background: – The top court was hearing a plea filed by lawyer Durga Dutt which sought direction to the Centre for enacting well defined laws/rules to ensure adherence to the fundamental duties as enshrined in the Constitution. Key takeaways The Fundamental Duties were introduced into the Indian Constitution by the 42nd Amendment Act, 1976, on the recommendation of the Swaran Singh Committee. They are enshrined in Part IV-A of the Constitution under Article 51A. These duties are a set of moral obligations that every citizen is expected to follow. Key Features: Not Justiciable: Unlike Fundamental Rights, Fundamental Duties are not enforceable by law and cannot be claimed or defended in a court of law. However, Parliament has the authority to enact laws to enforce specific duties. Moral Obligations: They represent a set of guidelines that aim to remind citizens of their moral and civic duties toward the nation. Inspiration: The concept of Fundamental Duties in India is inspired by the Constitution of the former Soviet Union. As per Article 51A, it shall be the duty of every citizen of India: To abide by the Constitution and respect its ideals and institutions, the National Flag, and the National Anthem. To cherish and follow the noble ideals that inspired the national struggle for freedom. To uphold and protect the sovereignty, unity, and integrity of India. To defend the country and render national service when called upon to do so. To promote harmony and the spirit of common brotherhood amongst all the people of India, transcending religious, linguistic, and regional or sectional diversities; to renounce practices derogatory to the dignity of women. To value and preserve the rich heritage of our composite culture. To protect and improve the natural environment, including forests, lakes, rivers, and wildlife, and to have compassion for living creatures. To develop scientific temper, humanism, and the spirit of inquiry and reform. To safeguard public property and abjure violence. To strive towards excellence in all spheres of individual and collective activity so that the nation constantly rises to higher levels of endeavor and achievement. (Added by the 86th Constitutional Amendment Act, 2002): To provide opportunities for education to children between the ages of six and fourteen years and ensure that they receive education. Examples of laws that effectuate Fundamental Duties: Duty to Abide by the Constitution and Respect National Symbols (Article 51A(a)): Prevention of Insults to National Honour Act, 1971: This law ensures respect for the National Flag, National Anthem, and the Constitution. It penalizes acts of disrespect, such as burning or defacing the National Flag or disrupting the National Anthem. Duty to Uphold and Protect Sovereignty, Unity, and Integrity of India (Article 51A(c)): Unlawful Activities (Prevention) Act, 1967 (UAPA): UAPA is aimed at preventing unlawful activities and associations that threaten the sovereignty

Archives (PRELIMS & MAINS Focus)   EXTRADITION TREATY BETWEEN INDIA AND BANGLADESH  Syllabus Prelims & Mains – CURRENT EVENT Context:  The chief prosecutor of Bangladesh’s International Crimes Tribunal (ICT) has announced plans to seek the extradition of ousted leader Sheikh Hasina from neighbouring India. Background: – Hasina sought refuge in India in August after a mass uprising compelled her to step down. Since her departure, numerous criminal cases have been lodged against her and her aides, encompassing charges of murder, torture, abduction, crimes against humanity, and genocide. Key takeaways India and Bangladesh have a bilateral extradition treaty in place that could allow for sheikh Hasina’s return to face trial. 2013 Extradition Treaty (Amended in 2016): Originally aimed to address insurgency and terrorism along shared borders. Facilitated extradition of fugitives like two convicts in Sheikh Mujibur Rahman’s assassination and ULFA leader Anup Chetia. Conditions for Extradition: Crimes must carry a minimum sentence of one year. Dual criminality required, meaning the offence must be punishable in both countries. Since the charges against Ms. Hasina are prosecutable in India, and the penalties for her alleged crimes are also substantial, she qualifies for extradition on these grounds. 2016 amendment eased extradition by only requiring an arrest warrant issued by a competent court in the requesting country for initiation of extradition process. Grounds for Refusal: Political Nature: Extradition can be refused for politically motivated offences, but crimes like murder and terrorism are excluded from this exemption. Good Faith Clause (Article 8): Extradition can be denied if the accusation is not in good faith or involves military offences not considered general crimes. India could potentially refuse extradition on the ground that the charges against Ms. Hasina have not been levelled in good faith and there is a possibility of her being subjected to political persecution or an unfair trial upon her return to Bangladesh. Implications: Extradition is not guaranteed and will depend on diplomatic negotiations. Denial of the request may only cause minor political tension without significantly impacting bilateral relations as per experts. Bangladesh is India’s largest trade partner in South Asia, with bilateral trade valued at $15.9 billion in FY 2022-23. India has pledged continued support to Bangladesh under the new interim government, despite the regime change. Source: The Hindu CHALLENGES TO ROAD SAFETY IN INDIA  Syllabus Mains – GS 2 Context: The “India Status Report on Road Safety 2024,” prepared by the TRIP Centre at IIT Delhi, highlights India’s slow progress in meeting goal of reducing road accident fatalities. Background: – The report analyses road safety in India, using data from First Information Reports (FIRs) from six States and audits of State compliance with Supreme Court directives on road safety governance. Key takeaways from the report India is lagging in reducing road accident fatalities and is unlikely to meet the UN Decade of Action for Road Safety goal of halving traffic deaths by 2030. Public Health Challenge: Road traffic injuries were the 13th leading cause of death and the 12th leading cause of health loss in India in 2021. In some States (Haryana, Jammu and Kashmir and Ladakh, Punjab, Rajasthan, Uttarakhand, Uttar Pradesh), road injuries rank among the top 10 causes of health loss. Need for Crash Surveillance: India’s national road safety data systems are insufficient for guiding public policy. Currently, there is no national crash-level database. Road safety statistics at both State and national levels are compiled from individual police station records, which are aggregated at district, State, and national levels before being published. These tables allow only the most basic analyses, preventing effective intervention or program evaluation. Significant variance in road safety across States: Tamil Nadu, Telangana, and Chhattisgarh recorded the highest death rates, at 21.9, 19.2, and 17.6 per 1,00,000 people, respectively. In contrast, West Bengal and Bihar had the lowest rates, at 5.9 per 1,00,000 in 2021 Six States – Uttar Pradesh, Maharashtra, Madhya Pradesh, Karnataka, Rajasthan, and Tamil Nadu – account for nearly half of all traffic fatalities. Pedestrians, cyclists, and motorcyclists are the most affected; trucks are the leading impacting vehicles. Traffic Safety Gaps: Helmet usage is low in rural areas, especially among motorcyclists. Only eight States have audited more than half of their National Highway lengths, and very few States have done the same for their State Highways. Basic traffic safety measures, including traffic calming, markings, and signage, are still lacking in most States. Global Comparison: India fares poorly in comparison to developed nations, with road fatalities much higher in 2021 compared to 1990, indicating worsening road safety conditions. The report questions whether better-equipped vehicles with more advanced safety features are the solution, given that two-wheeler riders, cyclists, and motorcyclists represent the majority of road fatalities. Way Forward: Central and State governments need to scale up road safety interventions. Establish a national fatal crash database with public access to improve risk understanding and intervention effectiveness. Tailored strategies are essential to address the diverse road safety challenges across different States. Source: The Hindu CARBON DIOXIDE EMISSIONS FROM INDIA’S TRANSPORT SECTOR  Syllabus Mains – ENVIRONMENT Context:  Carbon dioxide emissions from India’s transport sector could be reduced up to 71 per cent by 2050 if high-ambition strategies are adopted on few parameters, said a new study by World Resources Institute (WRI) India. Background: The study noted that following a high emission reduction target in the transport sector would also be pivotal in achieving India’s net-zero target by 2070. Key takeaways Emission Reduction Potential: India’s transport sector CO2 emissions could be reduced by up to 71% by 2050 with high-ambition strategies on: Electrification of vehicles. Improved fuel economy standards. Shifting to cleaner modes of transport. Current Emissions: India’s transport sector accounted for 14% of total energy-related CO2 emissions in 2020. 90% of these emissions came from road transport, with major contributors being: Two-wheelers: 16%, Cars: 25%, Buses: 9%, Freight LDVs: 8%, Freight HDVs: 45%. The study, using the energy policy simulator, found that simultaneously implementing fuel economy, electrification, and modal shift strategies at their highest levels can lead to a 71% reduction in CO2 emissions by

Archives (PRELIMS & MAINS Focus)   NATIONAL GREEN TRIBUNAL (NGT)  Syllabus Prelims & Mains – POLITY Context: A plea before the National Green Tribunal (NGT) by an advocate has raised questions of propriety and potential conflict of interest against Justice Sudhir Agarwal, one of the tribunal’s six judicial members. Background: – In his plea admitted on May 22, advocate Gaurav Bansal alleged that Justice Agarwal had heard a case in which his son, Gaurav Agarwal, was appointed as an amicus by the Tribunal. About National Green Tribunal (NGT) Establishment: The National Green Tribunal was established in 2010 under the National Green Tribunal Act, 2010. Objective: To provide effective and expeditious disposal of cases relating to environmental protection, conservation of forests, and other natural resources. It aims to enforce any legal right related to the environment and provide relief and compensation for damages caused to persons and property. The Tribunal has a presence in five zones- North, Central, East, South and West. The Principal Bench is situated in the North Zone, headquartered in Delhi. The Central zone bench is situated in Bhopal, East zone in Kolkata, South zone in Chennai and West zone in Pune. The Tribunal is headed by the Chairperson who sits in the Principal Bench and has at least ten but not more than twenty judicial members and at least ten but not more than twenty expert members. Key Features: Composition – The tribunal consists of: Chairperson & Judicial Members: A person shall not be qualified for appointment as the Chairperson or Judicial Member of the Tribunal unless he is, or has been, a Judge of the Supreme Court of India or Chief Justice of a High Court: Provided that a person who is or has been a Judge of the High Court shall also be qualified to be appointed as a Judicial Member. Expert Members: Environmental experts with professional qualifications and experience. Jurisdiction – Any person seeking relief and compensation for environmental damage involving subjects in the legislations mentioned in Schedule I of the National Green Tribunal Act, 2010 may approach the Tribunal. The statutes in Schedule I are: The Water (Prevention and Control of Pollution) Act, 1974; The Water (Prevention and Control of Pollution) Cess Act, 1977; The Forest (Conservation) Act, 1980; The Air (Prevention and Control of Pollution) Act, 1981; The Environment (Protection) Act, 1986; The Public Liability Insurance Act, 1991; The Biological Diversity Act, 2002. Principles Applied: The Tribunal is not bound by the procedure laid down under the Code of Civil Procedure, 1908, but shall be guided by principles of natural justice. Polluter Pays Principle: The party responsible for pollution should bear the costs of managing and rectifying it. Precautionary Principle: Preventive action should be taken to avoid environmental harm. Sustainable Development: Balancing environmental conservation with developmental needs. Powers: The NGT has the power to order: Compensation for environmental damage. Restoration of damaged ecosystems. Imposition of fines on entities violating environmental laws. Appeals: The Tribunal has powers to review its own decisions. If this fails, the decision can be challenged before the Supreme Court within ninety days. The Supreme Court has ruled that the NGT Act, 2010 doesn’t take away the jurisdiction of the High Court.So a decision of NGT can be appealed in high court also. Additional Information : Conflict of Interest Conflict of Interest means “any interest which could significantly prejudice an individual’s objectivity in the decision-making process, thereby creating an unfair competitive advantage for the individual or the organisation he/she represents”. Source: Indian Express MINIMUM SUPPORT PRICE (MSP)  Syllabus Prelims & Mains – ECONOMY Context: With soyabean prices in the market falling below the minimum support price (MSP), the Centre is set to procure 13 lakh metric tonnes of the oilseed from Maharashtra, which is a major producer of the crop and is scheduled to go to Assembly polls soon. Background: – A kharif season crop, soyabean is used as feed and for oil extraction. It is sown in June-July and harvested in September-October. About Minimum Support Price (MSP) Definition: The Minimum Support Price is a form of market intervention by the Government of India to insure agricultural producers against any sharp fall in farm prices. It is the price at which the government purchases crops from the farmers, regardless of the market price. Objective: To protect farmers from distress sales and ensure them remunerative prices for their produce. To encourage higher investment in agriculture and ensure food security by guaranteeing price stability. Announcement and Implementation: The MSP is announced at the beginning of the sowing season by the Government of India, based on the recommendations of the Commission for Agricultural Costs and Prices (CACP). MSP is not legally enforceable; it acts as a floor price, but the government procures only a few crops under it. Crops Covered: MSP is announced for 23 crops, including: 7 cereals (such as rice, wheat, maize) 5 pulses (like gram, arhar) 7 oilseeds (including groundnut, mustard) 4 commercial crops (cotton, sugarcane, jute, copra) Factors Considered for MSP Calculation: Cost of production (both paid-out costs and imputed costs like family labor). Supply-demand situation in the market. Price trends in domestic and international markets. Inter-crop price parity (balancing the price of crops). Farmers’ input-output price parity. Terms of trade between agriculture and non-agriculture sectors. Types of Costs Considered: A2 Costs:  It covers all paid-out costs directly incurred by the farmer — in cash and kind — on seeds, fertilisers, pesticides, hired labour, leased-in land, fuel, irrigation, etc. A2+FL Costs: A2 costs + the value of unpaid family labor. C2 Costs: It is a more comprehensive cost that factors in rentals and interest forgone on owned land and fixed capital assets, on top of A2+FL. CACP Recommendation: The CACP suggests MSP based on the A2+FL formula. However, farmers’ organizations often demand the MSP to be fixed at 1.5 times the C2 cost, in line with the recommendations of the Swaminathan Commission. Significance of MSP: Price Assurance: Ensures farmers receive a fair price, reducing the risk of exploitation by middlemen. Food

Archives (PRELIMS & MAINS Focus)   TYPHOON YAGI  Syllabus Prelims & Mains – GEOGRAPHY Context: Millions of people in Southeast Asia continue to struggle with torrential rains, floods, and landslides triggered by Typhoon Yagi — the strongest tropical cyclone Asia has seen this year and the second most powerful storm in the world so far this year after Hurricane Beryl. Background: – While Typhoon Yagi has severely impacted multiple countries, including the Philippines, China, Laos, Myanmar, and Thailand, it has hit Vietnam the hardest, where the death toll stands at around 233. Key takeaways Tropical cyclones form over warm ocean waters near the equator. When the warm, moist air from the ocean surface rises upward, a lower air pressure area is formed below. Air from surrounding areas with higher air pressure rushes into this low pressure area, eventually rising, after it also becomes warm and moist. As warm, moist air rises, it cools down, and the water in the air forms clouds and thunderstorms. This whole system of clouds and winds gains strength and momentum using the ocean’s heat, and the water that evaporates from its surface. Typhoon Yagi started as a tropical storm in the western Philippine Sea on September 1. It made landfall in the Philippines the next day and started to weaken. However, due to unusually warm waters in the South China Sea, the storm intensified again. By September 4, it strengthened into a strong typhoon with Category 3 winds. The next day, it became a Category 5 typhoon with peak maximum sustained winds of 260 kmph. The category of a tropical cyclone is determined by its sustained wind speed, as measured by the Saffir-Simpson Hurricane Wind Scale. It is classified into five categories — Category 1 to Category 5. While Category 1 tropical cyclones bring winds of 119 to 153 kmph, Category 5 tropical cyclones, which are the strongest, have winds of 252 kmph or higher. Storms that reach Category 3 and higher are considered major tropical cyclones due to their potential to inflict significant damage. Additional information: What is the difference between a hurricane and a typhoon? Hurricanes and typhoons are the same weather phenomenon: tropical cyclones. A tropical cyclone is a generic term used by meteorologists to describe a rotating, organized system of clouds and thunderstorms that originates over tropical or subtropical waters and has closed, low-level circulation. The weakest tropical cyclones are called tropical depressions. If a depression intensifies such that its maximum sustained winds reach 63 kmph, the tropical cyclone becomes a tropical storm.  Once a tropical cyclone reaches maximum sustained winds of 119 kmph or higher, it is then classified as a hurricane, typhoon, or tropical cyclone, depending upon where the storm originates in the world. In the North Atlantic, central North Pacific, and eastern North Pacific, the term hurricane is used. The same type of disturbance in the Northwest Pacific is called a typhoon. Meanwhile, in the South Pacific and Indian Ocean, the generic term tropical cyclone is used, regardless of the strength of the wind associated with the weather system. Source: Indian Express COMMONS AND TRAGEDY OF COMMONS  Syllabus Mains – ENVIRONMENT Context: Delhi recently hosted a first-of-its-kind dialogue on the conservation, restoration and governance of common resources such as forests, community lands, and water bodies like lakes or rivers, all usually referred to just as Commons. Background: – Nearly one-fourth of India’s landmass, about 205 million acres, is estimated to be Commons. Key takeaways Commons is a term used to refer to resources that are not owned by any individual or group or the government, but belong to, and are shared by, the community as a whole. Forests, local ponds, grazing lands, rivers, sacred sites, parks and lakes are all Commons. Commons could be intangible too. Language, folk art or dance, local customs, and traditional knowledge are all shared resources, and thus are Commons. In the digital age, most Internet and open-source software are Commons. Digital resources with creative commons licences are meant to be used freely by everyone. At the international level, the polar regions, the Arctic and Antarctica, are considered global Commons. No country is allowed to take ownership of these areas, even though everyone can use them for certain activities. Outer space, the Moon, and other planetary bodies are also global Commons. Commons are critical for several reasons. They provide a variety of ecological and other services that are beneficial for the entire community. As these resources are accessible to all, they face a greater threat of over-exploitation and damage. Since no one owns Commons, the responsibility of maintenance and upkeep often becomes a problem. Commons have also come under increased stress due to climate change. Different kinds of governance mechanisms have evolved to manage Commons depending on the context. There are international agreements, for instance, for the use and management of polar regions, outer space, and high seas. In India, the 2006 Forest Rights Act (FRA) is considered a good template for managing common forest resources. Additional mInformation: what is the tragedy of the commons? The tragedy of the commons refers to a situation in which individuals with access to a public resource—also called a common—act in their own interest and, in doing so, ultimately deplete the resource. This economic theory was conceptualized in 1833 by British writer William Forster Lloyd. In 1968, the term “tragedy of the commons” was used for the first time by Garret Hardin in Science Magazine. This theory explains individuals’ tendency to make decisions based on their personal needs, regardless of the negative impact it may have on others. In some cases, an individual’s belief that others won’t act in the best interest of the group can lead them to justify selfish behavior. Source: Indian Express EMERGENCY PROVISIONS AND THE IMPACT ON CENTRE-STATE RELATIONS  Syllabus Prelims & Mains – POLITY Context:  The recent spate of renewed violence in Manipur has once again triggered the discussion around Centre-State relations and the use of emergency provisions by the Centre. Background: Large-scale violence against innocent civilians, women and children; looting of ammunition from police armoury; drone

Archives (PRELIMS & MAINS Focus)   PRECISION FARMING  Syllabus Mains – GS 3 Context: The Centre is contemplating to earmark Rs 6,000 crore to promote precision farming. Background: – Apart from offering financial support, the Centre is also considering collaborating with the Netherlands and Israel, where tech-based modern farming solutions are being used, through Centres of Excellences (CoEs) Key takeaways Precision Farming (also called Precision Agriculture) refers to the use of technology to manage farming inputs (like water, seeds, fertilizers, pesticides) more accurately and efficiently. It involves technologies like Global Positioning System (GPS), Geographic Information System (GIS), remote sensing, drones, soil sensors, and data analytics to monitor crops, manage variability in the field, and optimize resource use. Benefits of Precision Farming: Increased Productivity: By applying inputs more accurately, farmers can improve crop yields and quality. Cost Reduction: It reduces the amount of fertilizers, water, and pesticides used, lowering costs for farmers. Environmental Sustainability: Reduces overuse of chemicals, promotes soil health, and limits environmental degradation. Efficient Resource Use: Optimizes the use of water, seeds, and other inputs, leading to better resource management. Impact on Sustainable Agriculture: Precision farming supports the goals of sustainable agriculture by minimizing resource wastage, reducing chemical inputs, improving soil health, and mitigating environmental damage. It helps address key challenges like climate change, water scarcity, and soil degradation by enabling better resource management and adaptive farming techniques. Source: Indian Express GST STRUCTURE — COMPLICATIONS AND THE WAY AHEAD  Syllabus Mains – ECONOMY Context: Recently, a restaurant owners complaint to Union Finance Minister regarding absurdity in get structure has gone viral. Background: – During the meeting with Finance Minister, the chairperson of a popular restaurant chain in Tamil Nadu, flagged the challenges faced by restaurateurs due to the varying GST rates on food items. Key takeaways Simplification of GST Structure: A less-complex GST structure essentially would imply a reduction in the number of tax slabs, minimal carve outs and exemptions, easier compliance mechanism and rates at a level at which both states and the Centre are able to safeguard their revenue streams. Multiplicities in Tax Rates: Issues raised over different GST rates for similar items (e.g., buns vs. cream buns). Classification (to different tax slabs) disputes often lead to legal challenges. Revenue Stability and Challenges: GST collections have stabilized around Rs 1.8 lakh crore monthly. Merging tax slabs (e.g., 12% and 18%) risks revenue loss. Around 70 per cent of the GST revenue is coming from 18 per cent tax slab. Even a 1% reduction in the 18% slab could reduce revenue by 3.5%. Concerns of States and Central Government: Any indication of a deceleration in revenue growth due to any tinkering of the GST rates, at a time when many southern states are already asking for a greater share of revenues under the Finance Commission mechanism, is not going to be easily agreeable to states. Revenue neutrality is crucial, preventing a slowdown in revenue growth. Potential Solutions for Rate Simplification: Flat rates with no exemptions (similar to Singapore/New Zealand) were considered but rejected for India’s diverse market. Standard Rate Proposal: In 2018, former F M Arun Jaitley suggested that as revenue grows, a standard GST rate between 12% and 18% should be fixed, with exemptions for luxury and sin goods. The country should eventually aim for GST slabs of zero, 5%, and a standard rate. Simplifying B2C Items: Experts suggest revisiting GST rates for simple B2C items, especially those sold by smaller manufacturers. A rejig of rates could provide relief without significant revenue loss. The equivalence principle need to be applied to similar B2C items.For eg: bakery items could be clubbed together with a valuation threshold for the premium segment products. Source: Indian Express FESTIVAL OF KARMA OR KARAM PARV  Syllabus Prelims – ART & CULTURE Context: Tribal populations in Jharkhand, West Bengal, Bihar, Madhya Pradesh, Chhattisgarh, Assam, and Odisha celebrated the harvest festival of Karma or Karam Parv last week. Background: At the heart of the Karma festival is the Karam tree — traditionally seen as a symbol of Karam Devta or Karamsani, the god of strength, youth, and vitality, and the object from which the festival takes its name. Key takeaways The Karam Parv, also known as the Karma Festival, is a harvest festival celebrated primarily in the Indian states of Jharkhand, West Bengal, Bihar, Uttar Pradesh, Madhya Pradesh, Chhattisgarh, Assam, Odisha, and even in Bangladesh. This festival is dedicated to the worship of Karam-Devta, the god of power, youth, and youthfulness. The festival is popular especially among the Munda, Ho, Oraon, Baiga, Kharia, and Santhal peoples. Timing: The festival is observed on the Ekadashi tithi (eleventh day) of the lunar fortnight in the month of Bhado (August-September). Rituals: Planting Seeds: Unmarried girls plant and nurture nine types of seeds (like rice, wheat, and corn) for 7-9 days. Karam Tree Worship: On the festival day, villagers go to the forest to collect branches of the Karam tree, which are then worshipped and planted in the village center. Singing and Dancing: The festival is marked by traditional songs and dances, creating a lively atmosphere. Cultural Significance: The festival symbolizes the community’s connection to nature and their prayers for a good harvest and overall well-being. Source: Indian Express WORLD OZONE DAY  Syllabus Prelims – ENVIRONMENT Context: September 16 is observed as the international day for the Preservation of the Ozone Layer. Background: – The theme for world ozone day 2024 is “Montreal Protocol: Advancing Climate Actions,” which underscores the Montreal protoco’ls vital role in both ozone layer protection and broader climate action efforts. Key takeaways World Ozone Day, officially known as the International Day for the Preservation of the Ozone Layer, is observed every year on September 16th. This day was designated by the United Nations General Assembly in 1994 to commemorate the signing of the Montreal Protocol on Substances that Deplete the Ozone Layer in 1987. About ozone layer The ozone layer, also known as the ozone shield, is a region of Earth’s stratosphere that contains a relatively high concentration of ozone (O₃)

Archives (PRELIMS & MAINS Focus)   COP29 IN AZERBAIJAN: FOCUS TO BE ON CLIMATE FINANCE AGREEMENT  Syllabus Mains – GS 2 & GS 3 Context: While countries are still struggling to come to an agreement over the quantum of finance that developed nations must mobilise in the coming years to fight climate change, Azerbaijan, the host of this year’s climate conference, has decided to launch a new fund to finance climate action. Background: – Climate finance refers to the investments that are needed to tackle climate change by way of either preventive steps to reduce emissions, known as mitigation or preparatory steps to tackle its impacts, known as adaptation. Key takeaways The Climate Finance Action Fund (CFAF) would seek “voluntary” contributions from fossil-fuel producing countries and companies, with Azerbaijan, itself a petroleum economy, making the initial contribution. The CFAF is part of a large package of proposals that Azerbaijan has prepared for inclusion in the final outcome of COP29 (29th edition of the Conference of Parties to the UN Framework Convention on Climate Change), which is to be held in the country’s capital, Baku, in November. The main agenda of COP29 is to finalise an agreement on climate finance, including the amount of money that developed countries must raise in the post-2025 period to help the developing world fight climate change. The rich and industrialised countries have been under an obligation to mobilise at least $100 billion every year from 2020. The 2015 Paris Agreement, however, mandates that this sum must be scaled up after 2025 and every five years thereafter. Negotiations on the contours of this finance agreement have been going on throughout this year, but little progress has been made. The plan for the CFAF was revealed a few months ago by Azerbaijan, the president of COP29, and now it has been formally included in the COP29 Action Agenda. Other proposals include a pledge to increase the global energy storage capacity by six times by 2030, a declaration on working towards a global market on green hydrogen, and an agreement to ensure the emissions footprint from the growth of digitisation and data centres is kept to a minimum. The CFAF would be the latest addition to the long list of existing climate funds, almost all of which are short on money. Source: Indian Express REAPING THE SILVER DIVIDEND  Syllabus Mains – GS 2 & GS 3 Context: The Centre’s decision, last week, to extend the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (AB-PMJAY) with a Rs 5 lakh top-up for all older adults aged above 70 years, not covered by other public health insurance schemes, is a step in the right direction. Background: – The demographic transition will change India’s age structure, disease profile, and social security needs. Promoting healthy and active ageing is essential to leverage the “silver dividend,” the economic contributions of an ageing population. Key takeaways Increasing Ageing Population & Low Health Insurance Coverage: India, now the world’s most populous country, is also among the fastest ageing nations. Life expectancy is 70 years, but the healthy life years are only 63.5. Rising burden of non-communicable diseases, disabilities, and bedridden elderly, particularly in the 70–80 and 80+ age groups. Only 1 in 5 people above 60 is covered by health insurance. High Out-of-Pocket (OOP) Expenditure & Inadequate Social Security: 92% of India’s workforce is in informal labour, making them vulnerable to financial shocks from healthcare costs. Elderly face double the OOP expenses for inpatient care compared to younger populations. Nearly half of households seeking hospitalisation or outpatient care encounter catastrophic health expenditure (CHE), leading to impoverishment for 15% of these households. India’s social security system for older adults is weak, leaving them financially vulnerable. The government’s extension of AB-PMJAY health insurance aims to support the elderly, especially in times of rising economic dependency and care poverty. Challenges with the AB-PMJAY Extension: Insufficient Budget:The government has allocated ₹3,437 crore for the extension of AB-PMJAY. Estimates show ₹14,282 crore is required to cover all eligible beneficiaries, meaning current funding is four times less than needed. Limited Coverage of Healthcare Needs: AB-PMJAY and most private schemes only cover secondary and tertiary care, excluding outpatient services (which account for 46% of health spending). Exclusion of outpatient care impacts preventive healthcare and does not address long-term care needs like palliative care for the elderly. Structural Issues in India’s Healthcare System: Low Public Health Spending: Public healthcare spending has stagnated at 0.9 to 1.35% of GDP for over seven decades. Expanding insurance coverage without increasing public health infrastructure will not solve the healthcare crisis. Need for Comprehensive Reforms: India’s healthcare system needs more integrated reforms, combining primary, secondary, and tertiary care to address the continuous needs of the ageing population. Public health spending, infrastructure, and healthcare workforce must expand in tandem with insurance schemes. International Models and Warnings: Less Effective Models: India seems to be following a US-style insurance-based system, which can inflate healthcare costs. Effective Models: Countries like Canada, Europe, and Australia view healthcare as a public service and treat health as a form of human capital. Source: Indian Express POLARIS DAWN MISSION  Syllabus Prelims – SCIENCE & TECHNOLOGY Context: After conducting the first-ever commercial spacewalk and traveling farther from Earth than anyone in more than half a century, the astronauts of the Polaris Dawn mission returned to Earth safely early Sunday. Background: Launched on September 10 aboard SpaceX’s Crew Dragon spacecraft, Polaris Dawn ascended to an impressive altitude of 870 miles, surpassing previous records and venturing farther from Earth than any humans have traveled on a non-lunar mission. Key takeaways The Polaris Dawn mission is a groundbreaking private spaceflight initiative led by Jared Isaacman in collaboration with Elon Musk’s SpaceX. This mission is part of the Polaris Program, which aims to push the boundaries of human spaceflight and pave the way for future missions to the Moon, Mars, and beyond. Objectives & Achievements First Commercial Spacewalk In a historic moment, mission commander Jared Isaacman and SpaceX engineer Sarah Gillis

Archives (PRELIMS & MAINS Focus)   ONE NATION ONE ELECTION  Syllabus Mains – GS 2 Context: Moving a step closer towards holding all elections simultaneously in the country — the Union Cabinet recently accepted the recommendations of the high-level committee chaired by former President Ram Nath Kovind. Background: – The High level Committee on Simultaneous Elections constituted under the Chairmanship of Shri Ram Nath Kovind, former President of India, had submitted its report in March this year. Key takeaways The high-level panel had recommended that, in order to switch to simultaneous polls, the government should take a “one-time transitory measure”, which would require it to identify an “appointed date” on “the date of the first sitting of the House of the People after a general election”. All State Assemblies that go to polls after the “appointed date” would have their terms expire with Lok Sabha. This would synchronise the electoral cycles of the central and state governments. As the second step, municipality and panchayat elections should be held within 100 days of the Lok Sabha and state elections. There will be a common electoral roll for all elections. Given that the first sitting of Parliament after this year’s Lok Sabha polls has already passed, government sources indicated that there is room for the implementation committee to make adjustments to the Kovind Committee’s recommendations, as these are merely suggestions and not binding. The exact timeline for implementation — whether polls will be held simultaneously in 2029 or 2034 — isn’t clear as of now. The Kovind Committee had recommended 18 amendments, including 15 Constitutional amendments. According to Law Ministry sources, the implementation of the report will require at least two immediate Constitutional amendments, first to bring Lok Sabha and State Assembly elections together, and the second for synchronising municipal elections and preparing a common electoral roll, which would require ratification by half of the states. A consequential amendment for Union Territories and the National Capital Territory of Delhi would follow. The first Constitution Amendment Bill to transition to a simultaneous election system will require a ‘special majority’ of both the Lok Sabha and Rajya Sabha. For this, two conditions have to be satisfied under Article 368 of the Constitution: First, half of the total membership of both Lok Sabha and Rajya Sabha must vote in favour of the amendment. Second, of the members present and voting, two-thirds must vote in favour of the amendment. The second Constitution Amendment Bill will ensure that all local body elections (for municipalities and panchayats) are held within 100 days of the simultaneous elections. For this amendment to go through, an additional condition apart from the two mentioned above must be fulfilled. This is because “local government” is a subject under the State List in the Seventh Schedule, which means only states have the power to pass laws on this subject. To amend such a feature, Article 368 stipulates that “the amendment shall also require to be ratified (agreed to) by the Legislatures of not less than one-half of the States” in the country. In the scheme proposed by the Kovind Committee, if a state Assembly or Lok Sabha is dissolved before the end of its ‘full’ five-year term, a ‘mid-term’ election will take place. However, the newly elected state Assembly or Lok Sabha will only serve for the remaining period before the next simultaneous elections are scheduled to take place. Source: Indian Express INDUS WATERS TREATY (IWT)  Syllabus Prelims & Mains – CURRENT EVENT Context: India has served formal notice to Pakistan seeking “review and modification” of the Indus water treaty under Article XII (3) of the pact. Background: – Under Article XII (3) of the IWT, its provision may from time to time be modified by a duly ratified treaty concluded for that purpose between the two governments. Key takeaways The Indus water treaty between India and Pakistan was signed on September 19, 1960, for the use of water available in the Indus and its tributaries. It was signed in Karachi by then Prime Minister Jawaharlal Nehru and then Pakistan President Mohammed Ayub Khan after nine years of negotiations arranged by the World Bank. According to the IWT, India enjoys the “unrestricted use” of the three “Eastern Rivers [Beas, Ravi, Sutlej] except as otherwise expressly provided” whereas Pakistan got control of the three “Western Rivers” [Indus, Chenab, Jhelum]. According to Article III (1) of the IWT, “India is under obligation to let flow” waters of the Western Rivers to Pakistan. The treaty also mandated the establishment of a Permanent Indus Commission, with a commissioner from each country, to maintain communication and address implementation issues. Additionally, a dispute resolution mechanism was established. In effect, the treaty gave India about 30% of the water carried out by the “Indus Rivers System” while Pakistan got 70% of the waters. India has significant strategic advantage by being situated upstream on all six rivers. In contrast, Pakistan’s lower geographical position rendered it reliant on its neighbours for water. As the only major cross-border water-sharing treaty in Asia, the Indus Water Treaty plays a crucial role in maintaining peace between two nuclear-armed neighbours. What challenges has the Indus Waters Treaty faced? Over the years, numerous disputes have been amicably resolved through the Permanent Indus Commission. However, a significant challenge to the treaty arose in 2017 when India completed the construction of the Kishanganga dam in Kashmir and continued work on the Ratle hydroelectric power station on the Chenab River. This occurred despite Pakistan’s objections and ongoing discussions with the World Bank regarding whether these projects violated the treaty’s terms. As explained before, under the terms of the treaty, the waters of the Indus, Jhelum, and Chenab were allocated to Pakistan, while India was entitled to generate electricity from run-of-the-river (doesn’t involve water storage) projects. However, Pakistan has repeatedly raised objections to these projects. India served formal notice to Pakistan on August 30 (2024), seeking review and modification of the IWT. India’s notification highlights “fundamental and unforeseen changes in circumstances” that

Archives (PRELIMS & MAINS Focus)   INDIA’S LEGACY IN INTERNATIONAL MEDIATION  Syllabus Mains – GS 2 Context: International Day of Peace is observed every year on September 21. World is grappling with conflicts, wars and looming threats of escalation in regions like West Asia. In this context, recalling India’s historical role in peacemaking and international mediation is important Background: – The International Day of Peace was established in 1981 by the United Nations General Assembly (UNGA) for commemorating and strengthening the ideals of peace both within and among all nations and peoples. Key takeaways India has consistently advocated for democratic dialogue and diplomacy to resolve global conflicts, rooted in its national movement and Non-Aligned Movement policy. Under Prime Minister Nehru, India played a significant peacekeeping role, mediating in several international conflicts during the Cold War era. Key Peace Mediation Efforts: Korean Crisis (1950-53): India’s resolution on Korea was adopted by the UN in 1952. India facilitated an armistice in 1953, chaired the Neutral Nations Repatriation Commission (NNRC) which was tasked to decide the fate of prisoners of war. A Custodian Force led by Lieutenant General K. S. Thimayya was deployed along the 38th parallel. India was also an active member of the UN Commission on Korea and the Neutral Nations Supervisory Commission. Vietnam (1950s-60s): India served as co-chair of the International Commission for Supervision and Control, mediating during the Vietnam War. Austria (1955): Nehru played key role in mediating between the USSR and Austria for the withdrawal of Soviet troops and successfully convincing Austria to declare neutrality in 1955. Protests Against Invasions: India opposed China’s invasion of Vietnam (1979), the Soviet invasion of Afghanistan (1979), the US invasions of Iraq (2003), and Afghanistan (2001). India’s image as a neutral power in South Asia, strong political leadership and proactive diplomacy by charismatic leaders alongside institutional support from the UN were the factors that led to the success of India’s mediation in Korea and other international hostilities. Current Role in Russia-Ukraine Conflict: India has consistently called for dialogue and diplomacy since the war began. In 2022, Prime Minister Modi, along with other world leaders, helped prevent a nuclear strike by Moscow on Kyiv. India has made efforts to revive the Black Sea Grain Initiative, following Russia’s withdrawal in July 2023. Modi has engaged with both President Putin and President Zelensky, positioning India as a potential mediator for peace. Putin acknowledged India as a sincere peace partner, while Ukraine also expressed trust in India’s peace-making role. Feasibility of India’s Peace Proposal: India’s non-aligned position, close ties with Russia and the West, and diplomatic legacy strengthen its potential as a mediator in the Russia-Ukraine conflict. India’s successful mediation in past conflicts like Korea could serve as a model for its peace efforts in Ukraine. Modi’s upcoming meetings with Zelensky and Putin (BRICS and sidelines of Quad summits) indicate further opportunities for India to facilitate negotiations. India’s proactive diplomacy, institutional support from the UN, and humanitarian stance position it as a credible peace mediator, building on its historic legacy of international conflict resolution. Source: Indian Express FINANCIAL ACTION TASK FORCE (FATF)  Syllabus Prelims & Mains – INTERNATIONAL Context: The Financial Action Task Force (FATF) placed India in the “regular follow-up” category for its compliance with anti-money laundering and counter-terror financing recommendations, saying it has an “effective” system, but added that “major improvements” are needed to strengthen prosecution in these cases. Background: – FATF, in its mutual evaluation report has listed some areas for improvement. Key takeaways The FATF is the global money laundering and terrorist financing watchdog. The Paris-based intergovernmental organisation was formed in 1989 as a G7 initiative to examine and develop measures to combat money laundering. In 2001, the FATF expanded its mandate to also combat terrorist financing. Key Functions and Objectives: Setting Standards: FATF sets international standards to ensure national authorities can effectively combat illicit financial activities. These standards are known as the FATF Recommendations. Monitoring Implementation: FATF assesses and monitors the implementation of its standards by member countries. This is done through mutual evaluations and follow-up processes. Identifying Risks and Trends: FATF conducts research to identify methods and trends in money laundering and terrorist financing. This helps in updating and refining its standards. Promoting Global Cooperation: FATF works with various international bodies, including the IMF and World Bank, to promote global cooperation in combating financial crimes. Grey and Black Lists: Countries that do not comply with FATF standards can be placed on the “grey list” (Jurisdictions under Increased Monitoring) or the “black list” (High-Risk Jurisdictions). These lists help to pressure countries to improve their compliance. Structure: FATF Plenary: The decision-making body of FATF, which meets three times a year to discuss and make decisions on various issues. Members: FATF has 40 member countries, including 38 jurisdictions and two regional organizations. India became a member of FATF in 2020. Indias Case: The “regular follow-up” ranking is being seen as a favourable outcome by New Delhi. The “regular follow-up” rating is currently shared by only four other G20 countries — the UK, France, Italy and Russia (suspended from FATF in February 2023). Most of the developing countries are in the “enhanced follow-up” category, which requires submission of reports on an annual basis, as against once in three years in the “regular follow-up” category. Key takeaways from FATF review report FATF report said that the main sources of money laundering in India originate from within, and the country faces a disparate range of terrorism threats from regional insurgencies in the Northeast and North, and Left-Wing Extremist groups. The “most significant” terror threats seem to be related to the Islamic State or al-Qaeda linked groups active in and around Jammu and Kashmir. India’s largest money laundering risks are related to fraud including cyber-enabled fraud, corruption and drug trafficking. The FATF enlisted several areas for improvement: limited number of prosecutions and convictions, risk-profiling of customers of financial institutions, monitoring of the Ministry of Corporate Affairs (MCA) registry for availability of accurate owner information, and the link between money laundering and human

Archives (PRELIMS & MAINS Focus)   THE DEPOSIT ISSUE: WHY BANKS ARE STRUGGLING TO LEND  Syllabus Prelims & Mains – ECONOMY Context: Banks are currently experiencing a deposit crunch, which is limiting their ability to extend credit. Background: – The Reserve Bank of India Governor Shaktikanta Das had, in July, raised concerns over slower deposit mobilisation compared to credit growth stating that as it may create structural liquidity issues. Key takeaways India is among the fastest-growing large economies of the world largely driven by the government’s elevated expenditure on infrastructure development. While government capital expenditure has spurred the growth rate, job creation remains a concern with youth unemployment touching 17 per cent, as highlighted by the World Bank. Private investment, measured by private Gross Fixed Capital Formation (GFCF), has been subdued, declining to a four-quarter low of 6.46 per cent in Q4FY24, down from 9.7 per cent in the previous quarter. The Economic Survey 2023-2024 also highlighted that between FY19 and FY23, the share of private non-financial corporations in overall GFCF increased only by 0.8 percentage points from 34.1 per cent to 34.9 per cent. In a worrying trend, S&P Global forecasted that year-on-year credit growth is set to decline during the current financial year to 14 per cent, compared to 16 per cent in the previous fiscal year. One key reason for this is the reduced risk appetite from banks for lending to the private sector, which is the economy’s largest job creator. S&P Global also said that “regulatory actions to tame unsecured lending” are also slowing credit growth. The RBI recently increased risk weights for unsecured loans which has moderated loan growth in this segment in recent months. Widening Credit-Deposit Gap A healthy credit growth rate is essential to maintain economic growth, especially in India where bank credit is a key component. However, for banks to extend credit, deposits must grow in tandem. But banks are currently experiencing a deposit crunch, which is limiting their ability to extend credit. This has led to a widening gap between bank deposits and credit growth. Current and savings accounts (CASA) – the banks’ primary low-cost funding sources, account for 41 per cent of total deposits, down from 43 per cent last year. Changing investment habit The slowdown in deposit growth comes amid an outflow of household savings from banks to capital markets. Following the Covid pandemic, the Indian capital markets have seen a meteoric rise. However, economists say that the shift in households’ saving behaviour towards alternative saving instruments have not alone lowered bank deposits as a move to alternate saving instruments would still imply that the money finds its way into bank deposits. “A shift in the savings portfolio of a household alone does not lead to a fall in deposits. It does, however, change the composition of deposits – for instance, a shift to CASA from term deposit or a move towards shorter tenure term deposits compared to longer tenure. This in turn could have an adverse impact on the money multiplier and the deposit creation process,” HDFC Bank said in a research report. Low government spending in the run up to the election has also exaggerated the deposit problem in recent months. Government spending remained low in the run up to the elections over the last few months and this led to an increase in government cash balances with the RBI. Source: Indian Express NATIONAL INVESTIGATION AGENCY (NIA)  Syllabus Prelims & Mains – POLITY Context: To improve the information network on a national level against “organised criminals”, the National Investigation Agency (NIA) will make a database of gangsters, criminals running their gangs from behind jails, and their associates. Background: – Sharing some of the key features of the database, a source said it would have the latest photographs of the criminals, biometric details, interrogation report, their logistics provider, weapon suppliers, and harbourers. Key takeaways Established: 2008 under the NIA Act, 2008, in response to the 26/11 Mumbai terror attacks. The NIA, with its headquarters (Hqrs) at New Delhi, has 18 Branch Offices in the country. Mandate: Investigation and prosecution of offenses affecting national security such as terrorism, financing of terrorism, and related activities. Special Jurisdiction: Unlike state police forces, the NIA can investigate and prosecute cases across states without special permission, overriding the federal division of powers in normal criminal law. Key Features: Investigative Scope: The NIA can investigate and prosecute offences under the Acts specified in the Schedule of the NIA Act. NIA deals with offenses related to: Terrorism under Unlawful Activities (Prevention) Act (UAPA) Bomb blasts, hijacking, human trafficking, cyber terrorism, and counterfeit currency Special Acts like the Atomic Energy Act, 1962, and Anti-Hijacking Act, 2016 etc Powers: Similar to a state police force but operates across states. It also has the power to investigate matters referred by the central government or with cross-border implications. NIA Amendment Act, 2019 focussed on three main areas: OFFENCES OUTSIDE INDIA: The original Act allowed NIA to investigate and prosecute offences within India. The amended Act empowered the agency to investigate offences committed outside India, subject to international treaties and domestic laws of other countries. The amended section reads: “Where the Central Government is of the opinion that a Scheduled Offence has been committed at any place outside India to which this Act extends, it may direct the Agency to register the case and take up investigation as if such offence has been committed in India.” The NIA special court in New Delhi will have jurisdiction over these cases. WIDENED SCOPE OF LAW: The Schedule originally had The Atomic Energy Act, 1962, The Unlawful Activities (Prevention) Act, 1967, and The Anti-Hijacking Act, 1982, among other entries. The amendment has allowed the NIA to investigate, in addition, cases related to (i) human trafficking, (ii) counterfeit currency or banknotes, (iii) manufacture or sale of prohibited arms, (iv) cyber-terrorism, and (v) offences under the Explosive Substances Act, 1908. SPECIAL COURTS: The 2008 Act constituted Special Courts for conducting the trial of offences under the Act. The 2019