MADRAS DAY

• It was on this day in 1639 that the town of Madrasapatnam, which later expanded and developed into modern-day Chennai, was purchased by the East India Company (EIC) from local kings. This would be a step in the establishment of the British Empire in India for the next few centuries
• After the British rule ended in 1947, the state and the city continued to be referred to as Madras
• It was carved out of the larger Madras presidency that had covered parts of other South Indian states
•  In 1969, the state was officially renamed Tamil Nadu and in 1996, the capital city of Madras became Chennai

• The British arrived on Indian shores in the early 17th Century, in the form of the East India Company (EIC)
• Its goal was to acquire the right to trade in India, and it did so through a victory at Swally Hole (near Surat) in 1612 over another colonial power – the Portuguese.
• The latter controlled the pilgrim sea route from western India to Mecca and were resented by India’s Mughal rulers.
• As a result of this victory over the Portuguese, the embassy of EIC under Thomas Roe secured an accord, through a farmaan or order from the court of Emperor Jahangir
• Under this, the English secured the right to trade and establish factories in India in return for becoming the Mughals’ naval auxiliaries who would provide them protection
• Beginning with Surat on the western coast, the EIC established trading posts that were often called Forts that were further developed.
• On the eastern coast, it went to Masulipatnam in 1611 for the same purpose. A base here would also benefit trade with Malaya (now Malaysia)
• The Dutch were also situated nearby, in Pulicat, and this was a source of tension. Francis Day, the Company’s representative at Armagaum and a member of the Masulipatam Council, then proposed that he should be allowed to look for another spot for a fresh settlement. This led the EIC to a town called Madrasapatnam.

• One theory says a fisherman named Madresan implored Day to name the city after him, but some sources claim that the name had existed before the British arrival, too
• Another theory suggests that a Madrassa located nearby, or a church by the name of ‘Madre de Deus’ (French for Mother of God) might have influenced it
• In the past, Madrasapatnam had seen Pallava and Chola rule
• According to the district’s official website, before the British arrival, it was under Vijayanagar rulers, who appointed chieftains known as Nayaks for overseeing their territories
• Damarla Venkatapathy Nayak, an influential chieftain under Venkata III, who was in charge of the area of present Chennai city, gave the grant of a piece of land lying between the river Cooum, almost at the point it enters the sea, and another river known as Egmore river to the English in 1639
• This was Madrasapatnam, and it was “on this piece of waste land” that Fort St. George was founded by the British, it adds. Andre Cogan, an officer of the EIC, transferred the seat of the Agency from Masulipatnam to here in 1641.
• Venkatapathy Nayak controlled the entire coastal country, from Pulicat in the north to the Portuguese settlement of Santhome
• In honour of his father Chennappa Nayak, the settlement which had grown around Fort St. George was named Chennapatanam. This would be the inspiration behind ‘Chennai’.
• Madrasapatnam was to the north and the intervening space between the two came to be populated soon enough, leading to the towns becoming almost combined
• Over the next few centuries, the city grew from its Fort and the Black and White towns (restricted settlements for Indians and Europeans, respectively)
• During the regime of Governor Elihi Yale (1687-92), the institution of a mayor and Corporation for the city was formed.
• More areas, such as Egmore and Tondiarpet, were acquired by the British as part of the Madras province.

• After independence, the Madras province came to be known as Madras State. The demand for a change in name to Tamil Nadu had been raised by some politicians and scholars for a while
• In 1956, Congress leader K P Sankaralinganar began an indefinite fast. One of his demands was the renaming of the state to Tamil Nadu
• After 76 days of his protest, he died on October 13, 1956. This led to the cause gaining more attention.
• On May 7, 1957, the DMK brought in a name change resolution in the State Assembly but the resolution was defeated.
• It was again brought up in January 1961 by Socialist Party MLA Chinna Durai. A month later, the resolution failed again after it was tabled, without the support of the ruling Congress party.
• In 1961, a Member of Parliament and Communist leader from West Bengal, Bhupesh Gupta, moved a Bill in Parliament for renaming Madras State as Tamil Nadu
• At that time, CN Annadurai, who was a Rajya Sabha member and would go on to become the last Chief Minister of Madras and the first Chief Minister of Tamil Nadu, supported the move. But this was also defeated due to a lack of a majority.
• Later in 1967, once his party DMK was in power, Annadurai moved a resolution in the State Assembly
• He argued that a capital city (Madras) cannot become the name of a state and said that the name Tamil Nadu had been used in ancient literature
• Parties, including Congress, welcomed the resolution. Since the renaming needed a Constitutional amendment, both Houses of Parliament approved the Bill in November and December 1968 respectively.
• The state government later issued a gazette notification to bring the name change into effect on January 14, 1969

For Prelims: Article 2, Article 3, British, Madrasipattanam, Machilipattanam For Mains: 1.Discuss the constitutional and legal procedures involved in the creation of a new state in a federal system. What are the safeguards in place to ensure that such a process is carried out democratically and in accordance with the principles of federalism? 2.Examine the historical and socio-political factors that often lead to demands for the formation of new states within a country. What are the potential benefits and challenges associated with the reorganization of states?

 

 

Previous Year Questions 1. Consider the following Statements (MPSC 2019) 1. Article 2 of the Indian Constitution relates to the admission or establishment of new States which are not part of the Union of India 2. Article 3 of the Indian Constitution provides for the formation of or Changes in the existing States including Union Territories 3.A Bill under Article 3 of the Indian Constitution shall be introduced only in Lok Sabha  Which of the above statements is/ are Correct? A. All of the above B. 1 and 2 C. 2 and 3 D. Only 3 Answer (B)

 

Source: indianexpress

LIBERATED REMITTANCES SCHEME (LRS)

 

 

 

1. Context

Ahead of the deadline for the TCS (tax collected at source) which was supposed to come into effect from July this year, remittances by resident Indians to other countries jumped 35 per cent on a month-on-month basis in June 2023 and 96 per cent when compared to June 2022. According to Reserve Bank of India (RBI) data, fund outflow under the RBI’s Liberalised Remittances Scheme (LRS) shot up to $3.89 billion (Rs 32,000 crore) in June as against $ 2.88 billion (Rs 23,900 crore) in May this year. LRS outflows in June 2022 were just $ 1.98 billion (Rs 16,430 crore).

 

2. Liberated Remittances Scheme (LRS)

• The Liberalized Remittance Scheme (LRS) is an Indian government program that allows individuals to remit up to $250,000 per year without any prior permission from the Reserve Bank of India (RBI). The LRS was introduced in 2004 to promote foreign exchange outflows and to facilitate travel and education expenses of Indian citizens
• The Liberalized Remittance Scheme (LRS) is a framework established by the Reserve Bank of India (RBI), the central bank of India, that allows resident individuals to remit a certain amount of money outside the country for various purposes.
• The LRS enables individuals to diversify their investment portfolios, acquire assets abroad, and engage in permissible foreign exchange transactions

 

3. Key features of LRS

Here are some key features of the Liberalized Remittance Scheme:

1. Eligibility: Resident individuals are eligible to use the LRS, which means individuals who are living in India for more than 182 days during the previous financial year.

2. Permissible Transactions: Under the LRS, individuals can remit money abroad for a variety of purposes, including travel, education, medical treatment, investments, buying property, gifting to relatives, and donations to charitable organizations.

3. Financial Limit: The scheme imposes a limit on the amount of money that can be remitted by an individual in a financial year. The limit is set by the RBI and is subject to change. The individual can remit up to this limit without requiring special permission.

4. Foreign Exchange Management Act (FEMA): Transactions under the LRS are governed by the provisions of the Foreign Exchange Management Act (FEMA), which lays out the legal framework for foreign exchange transactions in India.

5. Authorized Dealers: Transactions under the LRS are facilitated through authorized dealers (usually banks). Individuals need to approach these authorized dealers to carry out the remittances.

6. Reporting Requirements: Individuals are required to comply with the reporting requirements set by the authorized dealers and provide necessary documentation for the specific purpose of the remittance.

7. Prohibited Transactions: Certain types of transactions are not allowed under the LRS, such as remittances for speculative activities in the foreign exchange market or for trading in foreign exchange derivatives.

8. Tax Implications: While the remittances made under the LRS are generally tax-neutral, any income earned from investments made using the remitted funds may be subject to tax in India.

4. Way forward

The LRS is a popular scheme among Indian citizens who want to remit money abroad. It is relatively easy to use and does not require any prior permission from the RBI. However, there are some restrictions on the use of the LRS, such as the maximum amount that can be remitted per year.

The LRS is a good option for Indian citizens who want to remit money abroad for personal or business purposes. It is a convenient and hassle-free way to send money overseas.

 

 

 

For Prelims: Remittances, Liberated Remittances Scheme (LRS), Exports, Imports, Reserve Bank of India (RBI) For Mains: 1.Discuss the significance of remittances in the context of developing economies. How do they impact the macroeconomic stability and social dynamics of recipient countries? 2.Examine the factors that contribute to the growth of remittances from the Indian diaspora. How can these remittances be leveraged to promote economic development in India?

 

Previous year Questions 1.Which of the following constitute Capital Account? (UPSC CSE 2013) Foreign Loans Foreign Direct Investment Private Remittances Portfolio Investment Select the correct answer using the codes given below: (a) 1, 2 and 3 (b) 1, 2 and 4 (c) 2, 3 and 4 (d) 1, 3 and 4 Answer: (b)

 

Source: indianexpress

LUNA 25

 

1. Context

On August 11, Roscosmos, the Russian space agency, launched its Luna 25 spacecraft onboard a Soyuz 2 rocket. Luna 25 consisted of a lander and its mission was to soft-land near the moon’s south pole and study the properties of lunar soil and the atmosphere. But on August 20, Roscosmos stated that Luna 25 had suffered a glitch and crashed on the moon’s surface the previous day, ending the mission in a failure.

2. About Luna 25 

• The Luna 25 mission, a project spanning over two decades, was initially referred to as Luna-Glob before being integrated into the historic Luna series.
• This series, with its last mission, launched in 1976, holds significant historical value in space exploration.
• The mission was spearheaded by Roscosmos, the Russian space agency, and its primary objective was explicitly stated: to secure Russia's unimpeded access to the moon's surface.
• This objective resonated with the increasing recognition of the moon as a crucial destination in the realm of spaceflight.
• A distinctive feature of the Luna 25 mission was its partnership role in the International Lunar Research Station (ILRS), which Russia and China co-led.
• This collaboration stood in contrast to the U.S.-led Artemis Accords, underscoring Russia's commitment to playing a significant role in lunar exploration initiatives.
• Moreover, Luna 25 was not only a venture into space but also a statement of resilience. Amid the challenges of international sanctions following Russia's invasion of Ukraine in 2022, some experts speculated that the mission was strategically launched to demonstrate the country's economic stability.
• This included showcasing the strength of Russia's spaceflight sector, implying that the weight of sanctions had not undermined its capabilities.

Image Source: The Hindu

3.  Luna 25 Vs Chandrayaan 3:

• Luna 25 and Chandrayaan 3 were not in a race.
• They launched around the same time and aimed for lunar soft landings.
• Mission parameters influenced by the launch vehicle, spacecraft mass, trajectory, and sunlight availability.
• Chandrayaan 3 in development since 2019, Luna 25 since early 2010s.
• Both faced COVID-19 delays.
• Russia's past withdrawal from Chandrayaan 2 due to the Fobos-Grunt mission failure.
• Roscosmos and ISRO collaborated, excluding any competitive race.

4. Luna 25's Failure and Speculation:

• Roscosmos formed a committee to investigate Luna 25's failure.
• Craft experienced a technical issue, exceeding its operational parameters.
• Social media speculation by experts centers on a specific event.
• During an orbital change for landing, Luna 25 potentially used excessive thrust.
• This might have caused the craft to deviate from its intended orbit.
• Roscosmos lost communication during this maneuver.
• Roscosmos Director-General Yury Borisov mentioned an engine firing longer than planned (127s instead of 84s).

5. Communication Challenges for Luna 25 Rescue:

• Post-Ukraine invasion, Russia faced global sanctions.
• Lost access to satellite tracking due to strained international relations.
• NASA and European Space Agency helped ISRO track Chandrayaan 3.
• Russia could communicate with Luna 25 only at three stations: two in Russia, and one in Crimea.
• Limited communication window - only when the moon is over Russia.
• Attempted to contact Luna 25 during this small window but received no response.

6. Russia's Lunar Prospects Post Luna 25:

• Russia faces a lunar setback after Luna 25's failure.
• Was already lagging in moon exploration.
• Previously partnered with NASA for near-moon space station (limited role).
• Role in space endeavors diminishing.
• International Lunar Research Station (ILRS) phase includes Luna 26 and 27.
• ILRS aims at technology demonstration and site selection.
• Luna 25 failure and Western sanctions impact future launch dates (2027-2028).
• Russia's contribution and role in ILRS could be further limited due to these challenges.

7. The International Lunar Research Station (ILRS):

• ILRS represents a collaborative lunar exploration initiative. It is led by Russia and China, designed for scientific research and exploration. It aims to establish a research station on the moon's surface.
• Intends to support long-term human presence and scientific activities. Contrasts with the U.S.-led Artemis program and its focus on crewed missions. ILRS has a broader scope, emphasizing research, technology, and international cooperation.

Significance:

• Represents a global shift towards cooperative space exploration.
• Encourages peaceful uses of outer space and knowledge exchange.
• Addresses diverse research interests while reducing duplication of efforts.
• Offers a platform for countries with varying space capabilities to contribute.
• Reflects the moon's growing importance as a stepping stone for deeper space exploration.

Challenges and Opportunities:

• Balancing geopolitical interests and ensuring equal participation.
• Technological and logistical challenges for sustained lunar presence.
• Provides a model for future international space collaborations beyond the moon.

8. ROSCOSMOS: The Russian Federal Space Agency

Role and Mandate:

• ROSCOSMOS, officially known as the State Corporation for Space Activities "Roscosmos," is Russia's federal space agency.
• Responsible for the nation's space activities, including research, development, and operation of space programs.

History:

• Founded in 1992 following the dissolution of the Soviet Union and the disbandment of the Soviet space agency.
• Evolved from the legacy of Soviet space achievements, like launching the first human into space.

Key Functions:

• Launching: Coordinates launches of various spacecraft, including crewed missions, satellites, and interplanetary probes.
• Research and Development: Leads the development of new space technologies, vehicles, and systems.
• International Cooperation: Engages in collaborative efforts with space agencies worldwide, contributing to joint missions and projects.
• Cosmonaut Training: Manages the training and selection of Russian cosmonauts for space missions.
• Satellite Navigation: Oversees Russia's satellite navigation system, GLONASS, similar to the GPS system.

Notable Achievements:

• Launching the first human, Yuri Gagarin, into space in 1961.
• Soviet-era moon exploration, robotic lunar rovers, and sample return missions.
• Development of Soyuz spacecraft, a reliable workhorse for human spaceflight.
• Leading role in the International Space Station (ISS) program, providing crew transportation and key modules.

For Prelims: Luna 25, Soyuz 2 rocket, ROSCOSMOS: The Russian Federal Space Agency, European Space Agency (ESA), NASA, ISRO, International Space Station (ISS), International Lunar Research Station (ILRS), and Chandrayaan 3. For Mains: 1. How has Russia's space agency, ROSCOSMOS, evolved and adapted in the modern era to address challenges, maintain its legacy in space exploration, and contribute to international collaborative efforts? (250 words).

 

Previous year Questions  1. Examine the two statements carefully and select the correct answer using the code given below. (UPSC EPFO 2016) Statement I: The force on Moon due to Earth is the action, while the force on Earth due to Moon is the reaction Statement II: To every action, there is an equal and opposite reaction. A. Both statements are individually true and Statement II is the correct explanation of Statement I B. Both statements are individually true but Statement II is not the correct explanation of Statement I C. Statement I is true but Statement II is false D. Statement I is false but Statement II is true Answer: A   2. Which of the following statement/s is/are correct? (Karnataka PSC prelims 2017) A. A female astronaut Christina Koch spent 328 days, a record-breaker in space during 2019 - 20. B. Christina Koch was accompanied by astronauts Luca Parmitano and Alexander Skvortsov. C. Research during the mission was growing protein crystals for potential use in treatment for Parkinson’s and Alzheimer’s. Choose the correct answer from the options given below: A. Only A is correct B. A and B are correct C. B and C are correct D. A, B, and C are correct Answer: D

Source: The Hindu

RAGGING GUIDELINES

 

 

 

1. Context

In view of the recent incidents of ragging in Vellore and Hyderabad where students were seen being assaulted by their fellow students or seniors, it is natural that freshers could be worried about any such untoward incident happening to them

 

2. What is 'Ragging'?

• Any conduct by a student or group of students where words spoken, written or an act has the effect of teasing, treating or handling someone with rudeness
• A student or group of students indulging in rowdy or indiscipline activities causing annoyance, hardship, physical or psychological harm, raise fear or apprehension to other students
• Asking any student to do an act that generates a sense of shame, torment or embarrassment adversely affecting the physique or psyche of a student
• Any act by a senior student that would prevent, disrupts or disturbs the regular academic activity of any student
• Exploiting services of a student for completing academic tasks assigned
• Any act of financial extortion or forceful expenditure burden put on other students by students
• Any act of physical abuse: sexual abuse, homosexual assaults, stripping, forcing obscene and lewd acts, gestures, causing any kind of bodily harm or any other danger to health or person
• Any act of abuse by spoken words, emails, posts, or public insults which would also include deriving perverted pleasure, vicarious or sadistic thrill from actively or passively participating in the discomfiture to any student
• Any act that affects the mental health and self-confidence of any student

3. Punishment for Ragging

• There are several actions that can be taken by a head of an institution against ragging incidents. First, they should determine if the case falls under penal laws or not
• If it does, either the head themselves or through a member of the Anti-Ragging Committee should file an FIR within 24 hours of receiving the receipt from the police or local authorities. There are 15 penal provisions under which a case can be filed
• If any student is found guilty of ragging, the institution shall punish the student depending on the facts, nature and gravity of each incident
• The punishment can range from suspension from attending classes to expulsion from the institution and subsequent debarring from admission to any other institution
• Any incidents of ragging will adversely affect the institution’s accreditation, ranking or grading by NAAC or any other authorised accreditation agency

4. Roles and responsibilities of UGC

• The UGC has to undertake certain responsibilities such as informing the head of any institution, warden of hostels and nodal officers of the affiliated university, and the concerned district authorities if required as soon as they receive a distress call
•  The Commission shall maintain an appropriate database to create affidavits, it should be affirmed by the students and their parents and it should be stored electronically
• And, in order to build confidence in the public, the database shall be made available to a non-governmental agency to be nominated by the Centre
• All institutions have been asked by the UGC to add a mandatory column in the admission form pertaining to Anti Ragging Undertaking Reference number. Also, they are supposed to fill online compliance on antiragging.in.
• The UGC has asked the institutions to make it compulsory for every student and parent to submit an undertaking at antiragging.in
• The revised procedure for students to file online anti-ragging affidavits has to be implemented by the institutions.
• An email with the registration number will be sent to the student, who in turn will forward that email to the nodal office in their university.

5. University Grants Commission (UGC)

 

The University Grants Commission (UGC) is a statutory body under the Department of Higher Education, Ministry of Education, Government of India. It was set up in accordance to the UGC Act 1956 and is charged with coordination, determination and maintenance of standards of higher education in India

The UGC is working to address these challenges. It is expanding the number of universities and colleges, increasing the number of scholarships and fellowships, and investing in research. The UGC is also working to improve the quality of teaching and learning through a variety of initiatives

5.1. Roles and responsibilities

The UGC has the following roles and responsibilities:

• To determine and maintain standards of teaching, examination and research in universities. This includes setting up norms and standards for teaching, learning, and assessment; conducting inspections and evaluations of universities and colleges; and taking disciplinary action against institutions that do not meet the required standards.
• To provide financial assistance to universities and colleges. This includes funding for infrastructure development, research, and scholarships.
• To promote and coordinate research in universities and colleges. This includes funding research projects, organizing conferences and workshops, and providing fellowships to researchers.
• To advise the central and state governments on matters relating to higher education. This includes providing policy recommendations on issues such as curriculum development, teacher training, and student welfare.
• To set up standards for the establishment and recognition of universities and colleges. This includes approving the establishment of new universities and colleges, and withdrawing recognition from institutions that do not meet the required standards.
• To regulate the functioning of universities and colleges. This includes ensuring that universities and colleges comply with the UGC Act and the regulations issued by the UGC.
• To undertake measures to improve the quality of higher education. This includes promoting innovation in teaching and learning, developing new courses and programs, and strengthening the research infrastructure in universities and colleges.

 

 

Source: indianexpress

BRICS

 

 

1. Context

AS PRIME Minister Narendra Modi leaves for the BRICS (a grouping of Brazil, Russia, India, China and South Africa) summit in Johannesburg on Tuesday, all eyes are on a possible meeting between him and Chinese President Xi Jinping.

 

2. Multipolarity

• As many as 19 countries are said to be in the queue to join BRICS
• Among the countries that have been mentioned frequently since last year: Argentina, Nicaragua, Mexico, Uruguay, Venezuela from Latin America; Nigeria, Algeria, Egypt, Senegal, Morocco from Africa; Saudi Arabia, the UAE, Türkiye, Syria, Iran from West Asia; Kazakhstan from Central Asia; Bangladesh and Afghanistan from South Asia; and Indonesia and Thailand from South-east Asia
• It is not clear which countries might be admitted, but any expansion can be seen as strengthening the group’s heft as a spokesperson of the developing world
• By admitting some key countries in the list, BRICS could lay claim to representing more than half the world’s population. Significantly, the list includes big oil producers Saudi, Iran, the UAE, Nigeria, and Venezuela.
• There is considerable anti-US sentiment in the world, and all these countries are looking for a grouping where they can use that sentiment to gather together
• There is a lot of appetite for multipolarity, for a platform where countries of the Global South can express their solidarity

3. China in BRICS

• The idea of BRICS came between 2001 and 2003 from then Goldman Sachs chief economist Jim O’Neill, who projected that the four emerging markets of Brazil, Russia, India, and China would be the future economic powerhouses of the world, with South Africa being added later
• While the economic performance of BRICS has been mixed, the war in Ukraine  which has brought the West together on the one hand and strengthened the China-Russia partnership on the other  has turned it into an aspiring bloc that appears to be challenging the Western geopolitical view
• Significantly, China does not use the word multipolarity  instead using “multilateralism” whenever it hits out at “US hegemony”
• The theme of BRICS 2023 is: “BRICS and Africa: Partnership for Mutually Accelerated Growth, Sustainable Development, and Inclusive Multilateralism”

4. India in BRICS

• If India’s presence at the G7 summit in Hiroshima, where Prime Minister Narendra Modi also participated in an informal Quad summit, was seen as a sign of New Delhi’s US tilt, the importance it attaches to the “anti-West” BRICS is an apparent contradiction  much like the several others it has negotiated through the last year
• On contrary, India should not be seen as ganging up with an anti-West coalition, India is also part of the Shanghai Cooperation Organisation (SCO), and despite problems, it has relations with Russia, with China
• Some analysts see BRICS as an improbable grouping, with hostiles like India and China unlikely to ever find common ground  a situation that could get pronounced as it adds members

5. Common Currency

• The idea of a common currency was proposed by Russia’s President Vladimir Putin at the Beijing BRICS summit last year
• The idea got a cautious reception, with the leaders deciding to set up a committee to study its viability
• The last year of war has seen economies around the world feel the impact of the sanctions on Russia, the resultant spike in energy prices, combined with the rising value of the dollar
• An insulation from the dollar is a tempting proposal, but not all members believe that it is an idea whose time has come
• There are other complications, such as the setting up of a common central bank of member countries that have different economic and political systems and are located on different continents
• An option is for members to trade with each other in their respective currencies — but as the India-Russia example has shown, this is not easy either
• Moscow wants payments in dollars because it does not import enough from India to use rupee payments

6. Significance of BRICS

• BRICS is an acronym for the grouping of the world’s leading emerging economies, namely Brazil, Russia, India, China and South Africa.

• The BRICS Leaders’ Summit has convened annually. It does not exist in the form of an organisation, but it is an annual summit between the supreme leaders of five nations.
• BRICS is successfully expanding its external relations that were established at the Durban meeting between the five BRICS leaders, the leaders of the African Union and the leaders of eight leading African integration associations.

• BRICS is an important grouping bringing together the major emerging economies from the world, comprising:

• 41% of the world population, 
• 24% of the world GDP 
• over 16% share in world trade. 
• The total combined area of 29.3% of the total land surface of the world
• BRICS countries have been the main engines of global economic growth over the years. 
• Over a period of time, BRICS countries have come together to deliberate on important issues under the three pillars:
• political and security, 
• economic and financial and 
• cultural and people to people exchanges.
• During the Sixth BRICS Summit in Fortaleza (Brazil) in 2014, the leaders signed the Agreement establishing the New Development Bank (NDB - Shanghai, China). They also signed the BRICS Contingent Reserve Arrangement to provide short-term liquidity support to the members.

7. New Development Bank

• During the Sixth summit of BRICS in Fortaleza (2014), leaders signed an agreement to establish a new bank. New Development Bank was established in 2015 by BRICS Countries. 
•  New Development Bank aims to ensure that all projects financed by its funds are implemented sustainably and their ESG impacts are assessed, minimised and mitigated during project implementation
• It is headquartered in Shanghai, china
• In 2018, NDB received observer status in United Nations General Assembly
• Each participant will have the vote and no other countries have veto power unlike World Bank
• Bank will mobilise resources for infrastructure and sustainable development projects in BRICS Countries and other economies as well as in developing countries too

 

 

For Prelims: New Development Bank, BRICS For Mains: 1. BRICS can be the pillar of emerging countries. Discuss the probable changes of BRICS after math of the Russia-Ukraine war  (250 words) 2. BRICS gained importance due to US "hegemony". Discuss the Common currency proposed by Russia and associated issues surrounding it with respect to contemporary times (250 Words)

 

Previous Year Questions: 1. With reference to a grouping of countries known as BRICS, Consider the following Statements: (UPSC 2014) 1. First Summit of BRICS was held in Rio de Janeiro in 2009 2. South Africa  was the last to join the BRICS grouping Which of the above-given statement is/are true A. 1 Only       B. 2 Only       C. Both 1 and 2          D. Neither 1 nor 2 Answer : B

 

Source: indianexpress