2. About the Total Fertility Rate (TFR)

The Total Fertility Rate (TFR) is a key demographic indicator that helps us understand the average number of children a woman in a specific population will have during her lifetime, assuming current birth patterns persist. It's different from the crude birth rate, which simply measures the number of births per 1,000 people in a population in a given year. 

What it measures

• The average number of children a woman will have throughout her reproductive lifespan.
• It considers age-specific fertility rates, which means it takes into account the different birth rates at different ages within the population.
• Provides a longer-term perspective on population dynamics compared to the crude birth rate.

Significance

• Helps assess population growth trends and predict future population size.
• Informs policy decisions related to education, healthcare, social security, and economic development.
• Understanding TFR is crucial for analyzing the potential demographic dividend, which refers to the economic and social benefits that can arise from a large working-age population due to declining fertility rates.

Calculation

• Summing the age-specific fertility rates (ASFRs) for all fertile age groups (typically 15-49 years) and multiplying by five.
• ASFRs represent the average number of births per 1,000 women in a specific age group.

Key TFR levels

• Replacement fertility rate: Around 2.1 children per woman, ensures population stability without growth or decline due to births and deaths (excluding migration).
• TFR below replacement: Indicates a declining population, with potential implications for workforce size and economic growth.
• TFR above replacement: Leads to population growth, requiring investments in infrastructure and resources to support the growing population.

3. What does the Total Fertility Rate (TFR) of 2.0 mean?

A Total Fertility Rate (TFR) of 2.0 means that, on average, each woman in the population is expected to give birth to two children over her reproductive lifetime. This value represents the replacement level of fertility, where each generation replaces itself in the population. When the TFR is around 2.0, it indicates that the population is stable, with births balancing deaths over time.

A Total Fertility Rate (TFR) of 2.0 indicates several key things

• Average Children per Woman: In that specific population, on average, a woman will have two children during her lifetime, assuming current birth patterns remain unchanged. This means that each generation of women is replacing itself, without population growth or decline due solely to births and deaths (excluding migration).
• Replacement Fertility Rate: A TFR of 2.0 is often referred to as the replacement fertility rate. This is because it signifies the level of fertility needed to maintain a stable population size over time, considering only births and deaths. However, it's important to note that the exact replacement level can vary slightly depending on mortality rates, particularly child mortality.
• Demographic Transition: A TFR of 2.0 suggests that the population is likely in the later stages of the demographic transition. This transition involves a shift from high birth and death rates to low birth and death rates. In this stage, populations typically experience a decline in fertility, followed by a decline in mortality, leading to a stabilization of population size.
• Global Context: While 2.0 is the replacement fertility rate, the global average TFR is currently around 2.3, indicating slight population growth. However, many developed countries have TFRs below replacement level, which can lead to an ageing population and potential challenges for social security systems and workforce size.
• Policy Implications: Understanding the TFR is crucial for policymakers in various areas like education, healthcare, social security, and economic development. A TFR below replacement may necessitate policies encouraging childbirth or attracting immigration to address potential workforce shortages. Conversely, a high TFR might require investments in infrastructure and resources to support a growing population.

4. What is the Replacement Fertility Rate?

The Replacement Fertility Rate (RFR) is the level of fertility required to maintain a stable population size in a given area, considering only births and deaths (excluding migration). This means that each generation of women has just enough daughters to replace themselves and their mothers in the population.

Key Points about RFR

• Typically around 2.1 children per woman This number varies slightly depending on a country's mortality rates, especially child mortality rates. Higher child mortality necessitates slightly higher fertility to ensure replacement.
• When the TFR matches the RFR, the population neither grows nor declines due to births and deaths.
• Reaching RFR suggests a population in the later stages of the demographic transition, characterized by declining birth and death rates.
• Though the global average TFR is 2.3 (slightly above RFR), many developed countries have TFRs below RFR, leading to ageing populations.

Significance of RFR

• Understanding RFR helps policymakers formulate effective policies in areas like education, healthcare, social security, and economic development.
• TFR below RFR may require policies to encourage childbirth or attract immigration to address potential workforce shortages and support ageing populations. Conversely, a high TFR might necessitate investments in infrastructure and resources to sustain a growing population.
• Analyzing TFR about RFR offers insights into potential population growth or decline, aiding in planning and resource allocation.

5. How is the Total Fertility Rate calculated?

The Total Fertility Rate (TFR) is calculated by considering the age-specific fertility rates (ASFRs) of a population. 

1. Age-specific fertility Rates (ASFRs) represent the average number of births per 1,000 women within a specific age group. Typically, ASFRs are calculated for five-year age groups ranging from 15-49 years, covering the typical childbearing years for women. Data for calculating ASFRs usually comes from population censuses or demographic surveys.
2. Once you have the ASFRs for each age group, you need to sum them all up. This gives you the total number of births expected per 1,000 women across all fertile age groups.
3. Since age groups may have different sizes, simply summing ASFRs wouldn't be entirely accurate. To account for this, the sum is multiplied by the average number of women in each age group. This ensures the TFR reflects the fertility rates across all age groups proportionally.
4. Often, instead of using the actual number of women in each age group, a standard factor of "5" is used for convenience. This assumes that each age group has roughly the same number of women, which is a reasonable approximation for many populations.

Therefore, the TFR formula becomes: TFR = (Sum of ASFRs across all age groups) * 5

Example:

Imagine a hypothetical population with the following ASFRs:

• 15-19 years: 30 births per 1,000 women
• 20-24 years: 80 births per 1,000 women
• 25-29 years: 120 births per 1,000 women
• 30-34 years: 90 births per 1,000 women
• 35-39 years: 50 births per 1,000 women
• 40-44 years: 20 births per 1,000 women
• 45-49 years: 10 births per 1,000 women

Using the formula:

• TFR = (30 + 80 + 120 + 90 + 50 + 20 + 10) * 5
• TFR = 400 * 5
• TFR = 2000 births per 1,000 women

Therefore, in this example, the TFR is 2.0, indicating that on average, a woman in this population would have 2 children during her lifetime based on the current age-specific fertility rates.

6. The difference between birth rate and Total Fertility Rate (TFR)

While both birth rate and Total Fertility Rate (TFR) measure fertility within a population, they have key differences that offer distinct insights:

7. About demographic dividend

A demographic dividend refers to the potential economic and social benefits that can arise when a large share of the population is in the working-age (typically 15-64 years) compared to the dependent populations (children and elderly). This shift in population structure is often caused by a decline in fertility rates without a corresponding decline in mortality rates, leading to a "bulge" in the working-age population.

Key Features

• A larger working-age population translates to a larger pool of available labour, potentially boosting economic growth and productivity.
• The ratio of dependents (children and elderly) to the working-age population decreases, leading to increased savings and investment as fewer resources are needed to support dependents.
• The potential for increased investments in education and healthcare due to a smaller dependent population, leading to a more skilled and healthy workforce.

Conditions for a Dividend

• A significant and sustained decline in fertility rates is crucial for the demographic dividend to occur.
• The benefits of a demographic dividend can only be realized if the working-age population is adequately educated, skilled, and healthy.
• Expanding job opportunities is essential to absorb the growing workforce and prevent unemployment.

Challenges and Considerations

• The demographic dividend may not be evenly distributed across regions or social groups, potentially leading to inequalities.
• Governments and businesses need to adapt policies and infrastructure to accommodate the changing population structure.
• Ensuring social security and healthcare for the ageing population is crucial to sustain the benefits of the dividend.

Examples

• Several East Asian countries, like China and South Korea, experienced significant economic growth due to their demographic dividends in the latter half of the 20th century.
• India is currently experiencing a demographic transition with a declining fertility rate, creating the potential for a future dividend. However, realizing this potential requires investments in education, healthcare, and job creation.

 

 

Previous Year Questions   1. The total fertility rate is: (HPPSC GS 2018) (MPSC 2015)   A. The birth of women divided by the total female population B. The number of births divided by the total population C. The number of children a woman will likely bear in her lifetime D. The births to women of a given age divided by the total number of women at that age Answer: C   Mains   1. "Empowering women is the key to control the population growth.’’ Discuss. (UPSC 2019) 2. Critically examine the effect of globalization on the aged population in India. (UPSC 2013) 3. Discuss the main objectives of Population Education and point out the measures to achieve them in India in detail. (UPSC 2021) 4. Define potential GDP and explain its determinants. What are the factors that have been inhibiting India from realizing its potential GDP? (UPSC 2020)

 

 Source: The Indian Express

 

RESERVE BANK OF INDIA (RBI)

 

 

 

1. Context

 

The Reserve Bank of India (RBI), which was established on April 1, 1935, is responsible for monetary stability, currency management, inflation targeting, regulating the banking system, and setting interest rates. The central bank’s story of the last 90 years includes ups and downs but has generally been one of stellar achievements.

 

 

2. Establishment of the Reserve Bank of India

• The Reserve Bank of India (RBI) was established on April 1, 1935, when it was established by the Reserve Bank of India Act of 1934.
• Initially based in Calcutta, it serves as the apex monetary authority, regulator, and supervisor of India's financial system, exercising control over monetary policy, managing foreign exchanges, and overseeing payment and settlement systems.
• The establishment of the RBI was influenced by Dr. B.R. Ambedkar's seminal work, "The Problem of the Rupee – Its Origin and its Solution," and was founded based on the recommendations of the Hilton Young Commission in 1926.
• Beyond its regulatory functions, the RBI also plays a developmental role, acts as the issuer of currency, and functions as the banker to the Government of India.

The significant events in the history of the Reserve Bank of India

• The British government enacted the Reserve Bank of India Act in 1934, laying the foundation for the central bank's establishment.
• On April 1st 1935, the Reserve Bank of India commenced operations in Calcutta.
• In 1937 The RBI's headquarters were permanently relocated to Mumbai, where it continues to be situated.
• 1949 Following India's independence, the RBI underwent nationalization, transitioning from private ownership to being held by the Government of India. Before this, the bank had private stakeholders.

 

3. The preamble of the RBI

The preamble of the Reserve Bank of India (RBI) outlines the fundamental objectives and functions of the central bank. The preamble of the RBI Act 1934 states

"An Act to constitute a Reserve Bank for India to regulate the issue of Bank notes and the keeping of reserves to secure monetary stability in India and generally to operate the currency and credit system of the country to its advantage."

This preamble highlights the key roles and responsibilities of the RBI, which include:

• The RBI is responsible for regulating the issuance of currency notes in India. It ensures the stability and integrity of the currency system.
• The RBI is mandated to maintain adequate reserves to support monetary stability. This includes managing foreign exchange reserves and gold reserves.
• One of the primary objectives of the RBI is to secure monetary stability in India. This involves controlling inflation, managing interest rates, and promoting economic stability.
• The RBI operates and oversees the currency and credit system of the country. It plays a crucial role in managing liquidity, credit flow, and overall financial stability.

 

4. The objectives of RBI

The objectives of the Reserve Bank of India (RBI) encompass a range of crucial functions aimed at ensuring the stability, growth, and integrity of India's financial and economic systems. These objectives include

• The RBI is tasked with overseeing and regulating the nation's currency and credit system to ensure smooth financial operations and effective credit flow throughout the economy.
• One of the primary goals of the RBI is to safeguard monetary stability in India by managing reserves effectively and implementing policies that control inflation and stabilize the value of the currency.
• The RBI holds the responsibility of issuing banknotes, maintaining their quality, and managing their circulation across the country to facilitate efficient financial transactions.
• The RBI works diligently to maintain financial stability by engaging in prudent activities and insulating itself from undue political influences. This independence allows it to make decisions based on economic considerations rather than political pressures.
• Through its policies and interventions, the RBI aims to support economic growth and contribute to the planned advancement of the country's economy, fostering a conducive environment for sustainable development.
• The RBI acts as the banker to commercial banks, providing them with essential services such as clearing and settlement. It also serves as the banker to the government, managing its accounts, facilitating transactions, and helping in debt management. Additionally, it serves as the primary authority for issuing currency notes, ensuring the smooth functioning of the monetary system.

 

5. The Structure of RBI

The structure of the Reserve Bank of India consists of various components that work together to fulfil the central bank's functions and responsibilities.

Central Board of Directors

• The Central Board of Directors is the supreme decision-making body of the RBI.
• It comprises official directors, including the Governor, Deputy Governors, and other senior officials, as well as non-official directors appointed by the Government of India.
• The Central Board oversees the overall functioning of the RBI, including formulating policies, supervising operations, and managing key functions.

Governor

• The Governor is the highest-ranking official in the RBI and is appointed by the Government of India.
• The Governor plays a crucial role in setting monetary policy, representing the RBI in various forums, and managing the day-to-day operations of the central bank.
• The Governor chairs meetings of the Central Board and is responsible for executing RBI's policies and decisions.

Deputy Governors

• The RBI typically has four Deputy Governors, each responsible for specific areas such as monetary policy, banking regulation, currency management, and internal operations.
• Deputy Governors assist the Governor in policy formulation, decision-making, and overseeing key functions of the RBI.

Departments and Wings

The RBI operates through various departments and wings, each focusing on specific functions and responsibilities. Some of the major departments include

• Monetary Policy Department Formulates and implements monetary policies, manages interest rates and monitors economic indicators.
• Department of Banking Regulation Regulates and supervises banks and financial institutions, enforces prudential norms, and ensures financial stability.
• Department of Currency Management Manages currency issuance, circulation, and coinage operations.
• Foreign Exchange Department Manages foreign exchange reserves, formulates exchange rate policies, and regulates foreign exchange transactions.
• Financial Stability Unit Monitors systemic risks, assesses financial stability, and coordinates efforts to maintain a stable financial system.
• Information Technology (IT) Department Manages IT infrastructure, digital banking initiatives, and cybersecurity measures.

These departments work in coordination to achieve the RBI's objectives related to monetary policy, financial regulation, currency management, and economic stability.

 

Regional Offices

• The RBI has regional offices located in major cities across India.
• These regional offices play a vital role in implementing RBI policies at the grassroots level, supervising regional banks, and addressing regional banking and financial issues.

Committees and Advisory Groups

• The RBI forms various committees and advisory groups to provide expert advice, conduct research, and make recommendations on specific areas such as monetary policy, financial inclusion, risk management, and regulatory reforms.
• Examples include the Monetary Policy Committee (MPC), Board for Financial Supervision (BFS), and Internal Working Groups (IWGs) on various policy matters.

Autonomous Boards and Subsidiaries

• The RBI also oversees autonomous boards and subsidiaries that focus on specialized functions such as regulation of non-banking financial companies (NBFCs), development finance, and financial inclusion.
• Examples include the National Bank for Agriculture and Rural Development (NABARD), National Housing Bank (NHB), and Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL).

 

6. Functions of the RBI

 

The Reserve Bank of India (RBI) performs a wide range of functions that are essential for the functioning of India's monetary and financial system. These functions can be broadly categorized into the following

Monetary Policy Formulation and Implementation

• The RBI formulates and implements monetary policy to achieve price stability and promote sustainable economic growth.
• It sets key policy rates such as the repo rate, reverse repo rate, and marginal standing facility (MSF) rate to influence liquidity conditions and interest rates in the economy.
• The RBI also conducts open market operations (OMOs) to manage liquidity in the financial system.

Currency Issuance and Management

• The RBI is responsible for issuing currency notes and coins in India. It ensures an adequate supply of currency to meet the demand for cash transactions.
• It manages the distribution, circulation, and withdrawal of currency to maintain its integrity and prevent counterfeiting.

Regulation and Supervision of Banks and Financial Institutions

• The RBI regulates and supervises banks, non-banking financial companies (NBFCs), payment banks, small finance banks, and other financial institutions.
• It sets prudential norms, capital adequacy requirements, and risk management guidelines to ensure the stability and soundness of the financial system.
• The RBI conducts regular inspections, audits, and surveillance to assess compliance with regulatory standards and address potential risks.

Foreign Exchange Management

• The RBI manages India's foreign exchange reserves to support external trade, maintain exchange rate stability, and meet international payment obligations.
• It formulates policies and regulations governing foreign exchange transactions, capital flows, and external borrowings.
• The RBI intervenes in the foreign exchange market to stabilize the rupee and prevent excessive volatility in the exchange rate.

Developmental Role

• The RBI plays a developmental role by promoting financial inclusion, expanding access to banking services, and fostering the development of the financial sector.
• It implements initiatives such as priority sector lending, microfinance, and financial literacy programs to address the needs of underserved segments of the population.
• The RBI also supports the development of financial infrastructure, including payment systems, credit information bureaus, and regulatory frameworks for emerging sectors such as fintech.

Regulation of Payment and Settlement Systems

• The RBI regulates and oversees payment and settlement systems in India to ensure efficiency, safety, and reliability in financial transactions.
• It operates and manages key payment systems such as the Real-Time Gross Settlement (RTGS) system, National Electronic Funds Transfer (NEFT), and Unified Payments Interface (UPI).
• The RBI sets standards, guidelines, and regulations for participants in payment systems and monitors their compliance to mitigate systemic risks.

Financial Stability and Systemic Risk Management

• The RBI monitors and assesses systemic risks in the financial system to maintain financial stability.
• It conducts stress tests, risk assessments, and scenario analyses to identify vulnerabilities and take preventive measures.
• The RBI collaborates with other regulatory authorities and participates in international forums to address global financial stability issues.

 

 

7. Acts Administered by the RBI

The Reserve Bank of India (RBI) administers several key acts and regulations that govern various aspects of the banking, financial, and monetary system in India.

• The Reserve Bank of India Act, 1934 establishes the RBI as India's central bank and outlines its functions, powers, and governance structure.
• Public Debt Act, 1944/Government Securities Act, 2006 regulate the issuance, management, and trading of government securities in India. They provide the legal framework for government borrowing and debt management.
• Government Securities Regulations, 2007 supplement the Government Securities Act, 2006, and provide detailed guidelines for the issuance, trading, and settlement of government securities.
• Banking Regulation Act, 1949 empowers the RBI to regulate and supervise banks and banking activities in India. It covers aspects such as licensing, operations, governance, and resolution of banking crises.
• Foreign Exchange Management Act, 1999 (FEMA) governs foreign exchange transactions, capital flows, and external trade-related payments. The RBI administers FEMA and issues regulations to manage India's foreign exchange reserves and control cross-border transactions.
• Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (Chapter II) deals with the securitization and reconstruction of financial assets and enforcement of security interests by banks and financial institutions. The RBI oversees compliance with Chapter II of this act.
• Credit Information Companies (Regulation) Act, 2005 regulates credit information companies (CICs) that collect and disseminate credit-related information. The RBI supervises CICs and ensures compliance with data protection and consumer rights standards.
• Payment and Settlement Systems Act, 2007 provides the legal framework for regulating payment and settlement systems in India. The RBI administers and supervises payment systems to ensure their safety, efficiency, and reliability.
• Payment and Settlement Systems Regulations, 2008 regulations supplement the Payment and Settlement Systems Act, 2007, and provide detailed rules and procedures for payment system operators, participants, and settlement processes.
• Factoring Regulation Act, 2011 regulates and promotes factoring services, which involve the purchase and management of receivables or invoices. The RBI oversees compliance with the Factoring Regulation Act.

 

8. Initiatives taken by RBI

The Reserve Bank of India (RBI) undertakes various initiatives to promote financial stability, inclusion, and economic growth in India. 

Financial Inclusion

• The RBI encourages banks to provide microloans to small businesses and low-income individuals.
• Initiatives like Pradhan Mantri Jan Dhan Yojana (PMJDY) are supported to expand bank accounts and financial services in rural areas.
• The RBI simplifies regulations and promotes digital banking to make financial services more accessible.

Consumer Protection

• The RBI conducts awareness campaigns and provides resources to educate citizens about financial products and safe banking practices.
• The Integrated Ombudsman Scheme allows customers to file complaints against banks and financial institutions.
• The RBI sets guidelines for bank charges to ensure transparency and fairness for consumers.

Financial Regulation and Development

• The RBI uses monetary policy tools like interest rates to manage inflation and promote economic growth.
• Regular inspections and regulations ensure the smooth functioning and financial stability of banks.
• The RBI implements reforms to address emerging challenges and strengthen the financial system.

Digital Payments

• The RBI supports initiatives like UPI (Unified Payments Interface) to facilitate cashless transactions and financial inclusion.
• Guidelines and regulations are issued to enhance the security of digital banking platforms.
• The RBI encourages innovation in the digital payments space to improve efficiency and convenience.

Other Initiatives

• Financial Literacy Weeks-focused campaigns are organized to raise awareness on specific financial topics every year.
• The RBI takes steps to promote the development of a healthy and efficient financial market ecosystem.
• The RBI manages India's foreign exchange reserves to maintain a stable exchange rate.

 

9. Publications of RBI

The Reserve Bank of India (RBI) regularly publishes a wide range of reports, publications, and research papers covering various aspects of the economy, financial markets, banking sector, and monetary policy. 

• The RBI's Annual Report provides a comprehensive overview of the Indian economy, monetary policy developments, financial stability assessments, and the central bank's operations and initiatives throughout the year. It includes financial statements, policy reviews, and analysis of economic indicators.
• The RBI publishes bi-monthly Monetary Policy Reports, which contain detailed assessments of macroeconomic conditions, inflation projections, monetary policy decisions, and policy stance. These reports provide insights into the RBI's outlook and strategies for managing monetary policy.
• The Financial Stability Report (FSR) is published bi-annually by the RBI and assesses the overall stability of the financial system, including banking sector health, asset quality trends, risk assessments, and policy recommendations to mitigate systemic risks.
• The RBI releases various statistical publications, including the Handbook of Statistics on the Indian Economy, Monthly Bulletin, and Reports on Currency and Finance. These publications provide comprehensive data and analysis on key economic and financial indicators, monetary aggregates, and sectoral trends.
• The RBI publishes occasional papers, research studies, and working papers on topics related to monetary economics, financial markets, banking regulation, payment systems, and economic policy. These publications contribute to the central bank's research agenda and policy formulation.
• The RBI issues reports and guidelines on regulatory frameworks for banks, non-banking financial companies (NBFCs), payment systems, and other financial institutions. These include circulars, notifications, and reports on regulatory developments, prudential norms, and compliance requirements.
• The RBI Governor, Deputy Governors, and senior officials deliver speeches, addresses, and presentations at various forums, conferences, and seminars. These speeches provide insights into the RBI's policy priorities, perspectives on economic issues, and guidance on financial sector developments.
• The RBI conducts public awareness campaigns and educational initiatives to promote financial literacy, consumer protection, and awareness about banking services, digital payments, and financial products. These campaigns aim to empower individuals with knowledge and skills for informed financial decision-making.

 

10. The Way Forward

 

The RBI's future strategy should continue to prioritize financial stability, inclusive growth, technological advancements, regulatory effectiveness, and consumer welfare. Collaborative efforts with stakeholders across sectors and proactive measures in response to emerging trends and challenges will be key to achieving these objectives effectively.

 

 

For Prelims: RBI, Monetary Policy, Pradhan Mantri Jan Dhan Yojana, UPI For Mains:  1. The rise of digital payments has significantly transformed the financial landscape in India. Discuss the role of the RBI in facilitating and regulating digital payments. What are the key challenges associated with digital payments? (250 Words) 2. Analyse the relationship between the RBI and the Government of India. Discuss the importance of maintaining the central bank's independence for effective monetary policy implementation. (250 Words) 3. The RBI plays a crucial role in regulating and supervising banks and financial institutions. Explain the different functions performed by the RBI in ensuring financial stability. (250 Words)

 

 

Previous Year Questions   1. With reference to the Indian economy, consider the following statements: (UPSC 2022) 1. An increase in the Nominal Effective Exchange Rate (NEER) indicates the appreciation of the rupee. 2. An increase in the Real Effective Exchange Rate (REER) indicates an improvement in trade competitiveness. 3. An increasing trend in domestic inflation relative to inflation in other countries is likely to cause an increasing divergence between NEER and REER. Which of the above statements are correct? A. 1 and 2 only     B. 2 and 3 only       C. 1 and 3 only        D. 1, 2 and 3     2. With reference to Indian economy, consider the following statements: (UPSC 2015) 1. The rate of growth of Real Gross Domestic Product has steadily increased in the last decade. 2. The Gross Domestic Product at market prices (in rupees) has steadily increased in the last decade. Which of the statements given above is/are correct? (a) 1 only       (b) 2 only          (c) Both 1 and 2                (d) Neither 1 nor 2   3. Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization’? (UPSC 2023) (a) Conducting 'Open Market Operations' (b) Oversight of settlement and payment systems (c) Debt and cash management for the Central and State Governments (d) Regulating the functions of Non-banking Financial Institutions   4. In India, which one of the following is responsible for maintaining price stability by controlling inflation? (UPSC 2022) (a) Department of Consumer Affairs (b) Expenditure Management Commission (c) Financial Stability and Development Council (d) Reserve Bank of India    5. With reference to India, consider the following statements: (UPSC 2021) 1. Retail investors through demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in primary market. 2. The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India. 3. The ‘Central Depository Services Ltd.’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct? (a) 1 only       (b) 1 and 2 only        (c) 3 only              (d) 2 and 3 only   6. Consider the following statements (UPSC 2021) 1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. 2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest. 3. The Governor of the RBI draws his power from the RBI Act. Which of the above statements are correct? (a) 1 and 2 only    (b) 2 and 3 only   (c) 1 and 3 only           (d) 1, 2 and 3 Answers: 1-C, 2-B 3-A, 4-A, 5-B, 6-C

 

Source: The Indian Express

 

CHERIYAL SCROLL PAINTING 

 

 

 

1. Context

 

Telangana boasts a vibrant history of storytelling intertwined with a plethora of performative art forms. Among these traditions is Cheriyal, a quaint village nestled in the Siddipet district, renowned primarily for its scroll paintings, also known as 'Nakashi' paintings.

 

 

2. About Cheriyal Scroll Painting

Cheriyal scroll painting is a traditional art form originating from the Cheriyal village in Telangana, India. It is also known as Cheriyal scroll art or Cheriyal paintings. This art form has a rich cultural heritage and is known for its vibrant colours, intricate detailing, and unique storytelling themes. 

Themes and Styles

• Mythology and Folklore: Traditionally, Cheriyal scroll paintings served as vibrant storytellers, depicting scenes from Indian mythology like the Ramayana and Mahabharata, alongside local folktales. These narratives unfold sequentially, much like a comic strip, on long scrolls of cloth or paper.
• A Riot of Colors: Bold and vivid hues are a hallmark of Cheriyal paintings. Natural pigments derived from vegetable dyes and minerals bring the artwork to life. Red, yellow, blue, green, and black are the dominant colours, creating a visually arresting experience.
• A Distinctive Style: Cheriyal paintings boast a recognizable aesthetic. Figures are presented in a stylized manner, with expressive faces and exaggerated features. The backgrounds often come alive with geometric patterns and floral motifs, adding depth and vibrancy.
• Social Commentary: While religious and mythological themes dominated earlier works, contemporary Cheriyal scroll paintings have evolved to address social issues and contemporary events, reflecting the changing times.

3. The Creation Process of Cheriyal Paintings

Creating a Cheriyal scroll painting is a meticulous and time-honoured practice

1. Preparing the Canvas: Traditionally, cloth or handmade paper serves as the base. A paste made from tamarind seed and chalk powder is applied to create a smooth surface for the artwork.
2. Sketching and Outlining: The artist meticulously sketches the outlines of figures and scenes using a pencil or charcoal, laying the foundation for the narrative.
3. Coloring Magic: Natural pigments are mixed with water or a gum solution to create vibrant colours. The artist then carefully fills in the outlines, bringing the scene to life.
4. The Finishing Touches: After applying the base colours, the artist adds details to the figures, clothing, and background using fine brushes. This meticulous step infuses the artwork with life and depth.
5. Preserving the Art: A thin layer of varnish is applied after the painting is complete. This serves to protect the colours and ensure the artwork's longevity.

 

4. The Significance of Cheriyal Paintings

Cheriyal scroll paintings transcend mere aesthetics. They are

• These paintings offer a window into the traditions, beliefs, and way of life of the people of Telangana. They are valuable historical and cultural artefacts, preserving a rich artistic heritage.
• Cheriyal paintings showcase the evolution of storytelling through art. The sequential format and vibrant visuals have served as a powerful medium for generations.
• The willingness of contemporary artists to address social issues through their art ensures Cheriyal scroll paintings remain relevant, sparking conversations and raising awareness.
• While traditionally used for religious purposes, Cheriyal scroll paintings have found a place in modern homes as beautiful decorative pieces and prized collectables.

 

5. Threats and Preservation Efforts

Despite its rich legacy, Cheriyal scroll painting faces challenges

• Competition from Machine-made Art The influx of mass-produced art poses a threat to the traditional art form.
• Socio-economic Factors Struggles faced by artists, including dwindling financial returns, can discourage younger generations from pursuing this art form.

Efforts are underway to preserve this cultural treasure:

• Government Initiatives like Geographical Indication (GI) status recognition and support programs for artists aim to safeguard this art form.
• Increased promotion through exhibitions, workshops, and recognition programs can raise awareness and appreciation for Cheriyal scroll paintings.

 

6. The Way Forward

Cheriyal scroll painting is a vibrant tapestry woven with rich cultural heritage, artistic mastery, and captivating narratives. As you delve deeper into this art form, appreciate the meticulous process, the symbolic language embedded within it, and the enduring legacy it carries forward.

 

For Prelims: Cheriyal Scroll Painting, Telangana, Ramayan, Mahabharat, Geographical Indication For Mains:  1. Globalization has led to the increased availability of machine-made art, posing a threat to traditional art forms. Analyze the impact of globalization on Indian handicrafts and suggest strategies to ensure their economic viability. (250 Words) 2. Discuss how Cheriyal scroll paintings reflect the social, cultural, and religious life of Telangana. How can the preservation of such art forms contribute to our understanding of Indian history? (250 words)

 

 

Previous Year Questions   1. The Cheriyal Scrolls is a dying art form of India practised by one family called the Nakashi family for many generations. Name the modern day state which owns this art form. (SSC CHSL 2019) A. Tamil Nadu      B. West Bengal       C. Telangana        D.  Karnataka   Answer: C

 

Source: The Indian Express

KALLAKKADAL

 

 

1. Context

Hundreds of houses have been flooded in several coastal areas of Kerala due to high sea waves, also known as swell waves, since Sunday. The worst affected regions include Alappuzha, Kollam, and Thiruvananthapuram districts. Authorities have opened relief camps for the affected local communities.

 

2.What is Kallakkadal?

 

• Kallakkadal refers to coastal flooding occurring before the monsoon season in April-May along the southwest coast of India due to swell waves, as outlined in a 2016 paper titled "Teleconnection between the North Indian Ocean high swell events and meteorological conditions over the Southern Indian Ocean," published in the AGU journal.
• The research, conducted by P G Remya, S Vishnu, B Praveen Kumar, T M Balakrishnan Nair, and B Rohith of the Indian National Centre for Ocean Information Services in Hyderabad, explores this phenomenon.
• The term Kallakkadal, coined by local fishermen, originates from a combination of two Malayalam words, Kallan and Kadal, meaning thief and sea, respectively. According to the study, the amalgamation signifies the ocean's deceptive arrival. UNESCO formally recognized this term in 2012

3.What Causes Kallakkadal?

 

• Kallakkadal occurs due to the presence of waves known as ocean swells, hence its association with the term "swell surge."
• Unlike local winds, these ocean swells are generated by distant weather phenomena such as hurricanes or prolonged periods of intense gale-force winds.
• During these weather events, significant energy is transferred from the atmosphere to the ocean, resulting in the formation of exceptionally tall waves.
• These waves can traverse vast distances, spanning thousands of kilometers from the center of the storm until they reach the coastline.
• Typically, Kallakkadal is a result of powerful winds in the southern reaches of the Indian Ocean, where ocean swells originate. These waves then travel northward, reaching the coast within a span of two to three days.
• In the most recent occurrence, a low-pressure system moved over the region around March 25, originating from the South Atlantic Ocean and located approximately 10,000 kilometres away from the Indian coast.
• The presence of this pressure system led to the development of strong winds, which in turn facilitated the formation of swell waves reaching heights of up to 11 meters
• Kallakkadal occurs without precursors or any kind of local wind activity and as a result, it has been very difficult for the coastal population to get an advance warning.
• However, early warning systems like the Swell Surge Forecast System  —launched by the Indian National Centre for Ocean Information Services (INCOIS) in 2020 — gives forewarning seven days in advance

Why is Kallakkadal different from tsunami? Kallakkadal came under the spotlight after the 2004 tsunami that killed more than 10,000 people. However, Kallakkadal is often mistaken to be a tsunami, which is a series of enormous waves created by an underwater disturbance usually associated with earthquakes occurring below or near the ocean.

 

4.Kallakkadal around the World

 

• Kallakkadal, or coastal flooding caused by swell waves, is not unique to the southwest coast of India. Similar phenomena occur in various coastal regions around the world.
• For instance, in the Pacific Ocean, countries like Japan and Australia experience coastal flooding due to swell waves generated by distant storms or intense weather systems. Along the west coast of the United States, from California to Washington, swell waves originating from the North Pacific can lead to coastal inundation during certain times of the year.
• In the Atlantic Ocean, coastal areas of Europe, Africa, and the Americas can also be affected by swell waves, particularly during periods of heightened storm activity such as hurricanes or powerful extratropical cyclones.
• Overall, the occurrence of Kallakkadal-like events is not restricted to the Indian Ocean but can be observed in many coastal regions worldwide where the conditions for swell wave generation are met

5. Aftermath of Kallakkadal

 

The aftermath of Kallakkadal, or coastal flooding caused by swell waves, can be significant and wide-ranging.

Some of the aftereffects include:

• Property Damage: Coastal flooding often results in damage to buildings, infrastructure, and property located in low-lying coastal areas. Homes, businesses, roads, and agricultural land can be inundated by floodwaters, leading to structural damage and economic losses.

• Displacement of People: Residents living in coastal communities may be forced to evacuate their homes temporarily or permanently due to the flooding. Displacement can result in the loss of livelihoods, disruption of communities, and psychological distress among affected individuals and families.

• Impact on Ecosystems: Coastal flooding can have adverse effects on local ecosystems, including damage to habitats such as mangroves, wetlands, and coral reefs. The influx of saltwater into freshwater ecosystems can disrupt the balance of aquatic life and threaten biodiversity.

• Saltwater Intrusion: Infiltration of saltwater into coastal aquifers and agricultural land can contaminate freshwater sources and affect crop yields. Saltwater intrusion can also degrade soil quality and impact agricultural productivity in coastal regions.

• Environmental Pollution: Floodwaters may carry pollutants such as sewage, chemicals, and debris, leading to environmental contamination and posing health risks to humans and wildlife. Cleanup efforts following coastal flooding events are essential to mitigate pollution and restore environmental quality.

• Economic Impacts: The economic consequences of Kallakkadal can be substantial, including losses to businesses, disruptions to transportation and trade, and increased insurance claims. Coastal regions reliant on tourism may experience declines in visitor numbers due to concerns about safety and infrastructure damage

 

6.Way Forward

 

The swell surge is likely to continue impacting Kerala and other western coast regions of the country for the next two days before they gradually weaken.

It has alerted people in coastal areas vulnerable to sea erosion to take precautionary steps and ensure the safety of fishing vessels

 

 

Source: Indianexpress