DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 19th February 2025
Archives (PRELIMS & MAINS Focus) DEPOSIT INSURANCE Syllabus: Prelims & Mains – ECONOMY Context: The government is considering increasing the insurance cover for bank deposits from the current limit of Rs 5 lakh. Background: – Deposit insurance was introduced in India in 1962, and coverage has thus far been enhanced six times – from Rs 1,500 per depositor held in the same right and same capacity at all the branches of the insured bank to Rs 5 lakh now. Key takeaways The deposit insurance cover is offered by the Deposit Insurance and Credit Guarantee Corporation (DICGC), a specialised division of the Reserve Bank of India (RBI). The objective of the DICGC is to protect “small depositors” from the risk of losing their savings in case of a bank failure. The insurance cover of Rs 5 lakh per depositor is for all accounts held by the depositor in all branches of the insured bank. DICGC insures all commercial banks, including branches of foreign banks functioning in India, local area banks, regional rural banks, and cooperative banks. However, primary co-operative societies are not insured by the DICGC. Savings, fixed, current, and recurring deposits are insured. The DICGC does not provide insurance for deposits by foreign, central, and state governments, and for inter-bank deposits. The premium for deposit insurance is borne by the insured bank. DICGC collects premiums from member financial institutions at a flat or differentiated rate based on the bank’s risk profile. How does the limit for DICGC’s insurance coverage work? In 2021, a new Section 18A was inserted in the DICGC Act, 1961, which enabled depositors to get interim payment and time-bound access to their deposits to the extent of the deposit insurance cover through interim payments by DICGC, in case of imposition of restrictions on banks by the RBI. At present, the DICGC offers insurance cover on bank deposits up to Rs 5 lakh within 90 days of imposition of such restrictions. Since the DICGC insures both the principal and interest amount held by a depositor in a bank, this is how the cover works: Say, a depositor has Rs 4,99,800 in her account, which includes the principal amount of Rs 4,90,000 and Rs 9,800 as interest accrued on it. In this case, the DICGC will provide insurance for Rs 4,99,800, which essentially means the depositors will get Rs 4,99,800 if their bank fails However, if the principal amount is Rs 5,00,000 (or more), and the interest accrued is Rs 10,000, the interest accrued will not be covered, as the depositor would have exhausted the cover limit of Rs 5 lakh. If the bank goes into liquidation, DICGC is liable to pay to the liquidator the claim amount of each depositor up to Rs 5 lakh within two months from the date of receipt of the claim list from the liquidator. The liquidator will have to disburse the right claim amount to each insured depositor. Source: Indian Express INTERNATIONAL THERMONUCLEAR EXPERIMENTAL REACTOR (ITER) Syllabus: Prelims & Mains – SCIENCE & TECHNOLOGY Context: Prime Minister Narendra Modi, on his visit to France to attend an AI summit, also toured the ambitious International Thermonuclear Experimental Reactor (ITER) in Cadarache, accompanied by French President Emmanuel Macron. Background: – Prime Minister Modi’s visit to the ITER facility marks the first time that a Head of State or Head of Government has visited ITER. Key takeaways ITER is an international collaborative project aimed at building the world’s largest magnetic fusion device, designed to prove the feasibility of fusion as a large-scale and carbon-free source of energy. Presently, as many as 33 nations, including India, are collaborating on ITER project. Seven ITER members — China, India, European Union, Japan, Korea, Russia and United States — have been making joint efforts for decades to build and operate the ITER experimental device. ITER is currently under construction in the south of France. According to its current timeline, it is expected to begin deuterium-tritium fusion reactions by 2039, producing 500 MW of fusion power. ITER would not be converting the output heat energy into electricity. But its success is expected to pave the way for other machines to start using fusion energy as a regular source of electricity generation. According to the ITER website, the primary task of ITER is to investigate and demonstrate burning plasmas — “plasmas in which the energy of the helium nuclei produced by the fusion reactions is enough to maintain the temperature of the plasma, thereby reducing or eliminating the need for external heating”. Source: Indian Express EARTHQUAKES IN DELHI Syllabus: Prelims & Mains – GEOGRAPHY Context: Delhi frequently experiences earthquakes, often originating from distant regions. However, the magnitude 4 earthquake that struck before dawn on Monday was distinct, as its epicenter was within Delhi itself, near Dhaula Kuan. Background: Magnitude 4 earthquakes are not very strong, and do not result in much damage. Key takeaways Delhi lies in a seismically active area. India’s official earthquake hazard map puts Delhi in Zone 4, the second highest classification of areas based on their susceptibility to shaking experienced during an earthquake. Zone 4 in India includes areas that are expected to experience MSK-8-level intensity during an earthquake. The MSK, or Medvedev-Sponheuer-Karnik scale is a measure of intensity, rather than strength, or energy released, which is described by magnitude. Simply put, the MSK scale measures the susceptibility of an area to an earthquake. Based on the local geology and other factors, two places can feel, and be impacted by, a quake very differently, even if they are equidistant from its epicentre. Delhi falls in a region that has high susceptibility to quakes. MSK-8 means the area is vulnerable to major damage being caused to buildings and other infrastructure. Zone 5, the most vulnerable areas in India, correspond to MSK-9 levels of intensity or higher. Aravalli-Delhi Fold Belt Delhi lies in what is known as the Aravalli-Delhi Fold Belt, a seismically-active geological belt extending from southern and eastern Rajasthan to Haryana and Delhi. This region is characterised
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