Current Affair

Back
DAILY CURRENT AFFAIRS, 03 JUNE 2025

LANDSLIDES

 

1. Context

Three soldiers were killed and six were reported missing after a landslide struck an Army camp at Chaten in Lachen of northern Sikkim late on Sunday evening.
 
2.What is a Landslide?
 
A landslide is a geological phenomenon involving the movement of a mass of rock, earth, or debris down a slope. Landslides can occur due to various factors, including natural processes and human activities
The downslope movement of soil, rock, and organic materials under the influence of gravity
Types:
  • Rockfalls
  • Debris flows
  • Mudflows
  • Slumps
  • Earthflows
 
3. Landslides in India
  • The recent cases of land subsidence in Joshimath, Uttarakhand, captured the spotlight.
  • On June 29, 2022, at least 79 people were killed in a landslide in the Noney district of Manipur.
  • The risk analysis in the report was based on the density of human and livestock populations, which indicates the impacts on people due to these landslides.
  • The disaster in Kedaranath in 2013 and the landslides caused by the devastating Sikkim earthquake in 2011 are also included in this atlas.
Between 1988 and 2022, the maximum number of landslides 12, 385 recorded in Mizoram.
Uttarakhand followed it at 11, 219, Tripura at 8, 070, Arunachal Pradesh at 7, 689, and Jammu and Kashmir at 7,280. Kerala saw 6,039, Manipur 5,494 and Maharashtra recorded 5, 112 incidents of landslides.
 
  • Globally, landslides rank third in terms of deaths among natural disasters.
  • However, deforestation due to unplanned urbanisation and human greed increases the risk of such incidents.
  • In 2006, about 4 million people were affected by landslides, including a large number of Indians.
  • India is among the four major countries where the risk of landslides is the highest; it added. If we look at the figures, about 0.42 million square kilometres in the country are prone to landslides, which is 12.6 per cent of the total land area of the country.
  • However, the figure does not include snow-covered areas. Around 0.18 million sq km of landslide-prone areas in the country are in North East Himalayas, including Darjeeling and Sikkim Himalayas.
  • Of the rest, 0.14 million sq km falls in North West Himalaya (Uttarakhand, Himachal Pradesh and Jammu and Kashmir); 90, 000 sq km in the Western Ghats and Konkan hills (Tamil Nadu, Kerala, Karnataka, Goa and Maharashtra) and 10, 000 sq km in Eastern Ghats of Aruku in Andhra Pradesh.

4. Reasons for landslides

  • Sudden heavy rains due to climate change are also increasing landslides. Around 73 per cent of landslides in the Himalayan region are attributed to heavy rains and reduced water-absorbing capacity of the soil.
  • Global climate change is causing heavy rainfall that erodes steep slopes with loose soil found in a 2020 study by the Indian Institute of Technology in Delhi.
  • Therefore, the increasing number of landslides can no longer be termed as just natural disasters, as human actions have also played a major role in it.
5. Data On Landslides
  • Uttakarkhand, Kerala, Jammu and Kashmir, Mizoram, Tripura, Nagaland and Arunachal Pradesh reported the highest number of landslides during 1998 – 2022
  • Mizoram topped the list, recording 12,385 landslide events in the past 25 years, of which 8,926 were recorded in 2017 alone
  • Likewise, 2,071 events of the total 2,132 landslides reported in Nagaland during this period occurred during the 2017 monsoon season
  • Manipur, too, showed a similar trend, wherein 4,559 out of 5,494 landslide events were experienced during the rainy season of 2017, Of the total 690, Tamil Nadu suffered 603 landslide events in 2018 alone
  • Among all these states, an alarming situation is emerging from Uttarakhand and Kerala
  • While Uttarakhand’s fragility was recently exposed during the land subsidence events reported from Joshimath since January, this Himalayan state has experienced the second highest number (11,219) of landslides since 1998, all events since occurring post 2000
  • The year-wise number of landslide events in the state is: 2003 (32), 2010 (307), 2012 (473), 2013 (6,610), 2017 (1), 2021 (329) and 2022 (1)
  • The number of districts with the maximum landslide exposure are in Arunachal Pradesh (16), Kerala (14), Uttarakhand and Jammu and Kashmir (13 each), Himachal Pradesh, Assam and Maharashtra (11 each), Mizoram (8) and Nagaland (7)
  • Kerala has been consistently reporting massive landslides since it suffered the century’s worst floods in 2018
  • The year-wise landslide events here are 2018 (5,191), 2019 (756), 2020 (9) and 2021 (29).
  • From the events and images obtained, the NRSC ranked Rudraprayag in Uttarakhand at the top of 147 vulnerable districts
  • It has the highest landslide density in the country, along with having the highest exposure to total population and number of houses

For Prelims & Mains

For Prelims: Landslides, climate change, ISRO, Disaster management, National Remote Sensing Centre, Landslide Atlas of India

Previous year questions

1. Which of the following statements in respect of landslides are correct? (NDA 2022)

1. These occur only on gentle slopes during rain.
2. They generally occur in clay-rich soil.
3. Earthquakes trigger landslides.

Select the correct answer using the code given below.

A. 1 and 2         B. 2 and 3            C. 1 and 3              D. 1, 2 and 3

 Answer: (B)

For Mains:

1. Describe the various causes and the effects of landslides. Mention the important components of the National Landslide Risk Management Strategy. (250 words) (2021)

Source: The Down to Earth

 

NATIONAL GREEN TRIBUNAL

 

1. Context

The National Green Tribunal (NGT) has stated that the Mediterranean Shipping Company (MSC) that owned the Liberia-flagged container vessel

2. What is National Green Tribunal (NGT)?

  • The National Green Tribunal (NGT) is a specialized judicial body established in India to handle cases related to environmental protection and conservation.
  • It was established under the National Green Tribunal Act, of  2010, and its primary objective is to effectively and expeditiously address environmental disputes and promote sustainable development.
  • With the establishment of the NGT, India became the third country in the world to set up a specialized environmental tribunal, only after Australia and New Zealand, and the first developing country to do so.
     
  • NGT is mandated to make disposal of applications or appeals finally within 6 months of the filing of the same.
  • The NGT has five places of sittings, New Delhi is the Principal place of sitting, and Bhopal, Pune, Kolkata and Chennai are the other four.

3. Structure of the National Green Tribunal (NGT)

  • Chairperson: The NGT is headed by a full-time Chairperson who is a retired judge of the Supreme Court of India. The Chairperson is responsible for the overall administration and functioning of the tribunal.
  • Judicial Members: The NGT consists of judicial members who are retired judges of either the Supreme Court or a High Court. These members have extensive legal knowledge and experience in handling environmental matters.
  • Expert Members: The tribunal also includes expert members who possess expertise in areas such as environmental science, ecology, hydrology, and forestry. These members provide valuable technical insights and guidance in the resolution of environmental disputes.
  • The NGT is organized into multiple benches located across different regions of India. These benches are responsible for hearing cases specific to their respective jurisdictions. Each bench is headed by a judicial member and consists of one or more expert members, as required.

4. What are the Important Landmark Judgements of NGT?

The National Green Tribunal (NGT) has delivered several landmark judgments that have had a significant impact on environmental protection and conservation in India. Here are some of the important landmark judgments delivered by the NGT:

  • Vardhaman Kaushik v. Union of India (2013): This case dealt with the issue of groundwater depletion due to illegal extraction by industries in Uttar Pradesh. The NGT directed the closure of industries that were extracting groundwater without proper permissions and ordered the payment of compensation for environmental damage caused.
  • Alembic Pharmaceuticals Ltd. v. Rohit Prajapati & Ors. (2014): In this case, the NGT ordered the closure of an industrial unit in Gujarat for releasing untreated effluents into a water body, causing pollution and harm to the environment and public health.
  • M.C. Mehta v. Union of India (2014): The NGT issued a landmark judgment in this case regarding the pollution of the Yamuna River. It directed several measures to clean and rejuvenate the river, including the establishment of sewage treatment plants and the regulation of industries contributing to pollution.
  • Subhash Chandra Sharma v. Union of India (2015): This case focused on the issue of air pollution caused by solid waste burning in open areas. The NGT imposed a ban on burning waste in open spaces and directed municipal authorities to take measures to manage waste effectively.
  • Raghu Nath Sharma v. State of Himachal Pradesh (2016): The NGT ordered the closure of illegal hotels and structures in the eco-sensitive Rohtang Pass area of Himachal Pradesh to protect the fragile Himalayan ecosystem.
  • Yamuna Muktikaran Abhiyan v. Union of India (2017): This case dealt with the rejuvenation of the Yamuna River and led to the NGT issuing directions to clean and restore the river, including measures to prevent encroachments and pollution.
  • M.C. Mehta v. Union of India (2017): The NGT banned the use of disposable plastic in Delhi and the National Capital Region (NCR) and directed authorities to take steps to prevent the use and sale of such plastic.
  • Shailesh Singh v. Hotel Holiday Regency (2019): In this case, the NGT imposed heavy fines on a hotel in Shimla, Himachal Pradesh, for causing air pollution by running diesel generators without proper emission control measures.
  • Subhash Chandran vs. Tamil Nadu Pollution Control Board (2020): This judgment highlighted the importance of safeguarding coastal areas and wetlands from unauthorized construction and development activities, emphasizing the need for stringent environmental norms.
  • In Re: Report by Comptroller and Auditor General of India (2021): The NGT directed the formulation of guidelines for the regulation of groundwater extraction and management to prevent overexploitation and depletion.

5. What is a dissolved oxygen level?

  • Dissolved oxygen (DO) level refers to the concentration of oxygen gas (O2) that is dissolved in a liquid, typically water.
  • It is a crucial parameter in aquatic ecosystems as it directly affects the survival and well-being of aquatic organisms.
  • In natural water bodies like lakes, rivers, and oceans, oxygen dissolves from the atmosphere through processes such as diffusion and aeration.
  • Aquatic plants, algae, and phytoplankton also contribute to the production of oxygen through photosynthesis. However, the level of dissolved oxygen can fluctuate based on various factors, including temperature, altitude, water flow, pollution, and organic matter decomposition.
  • Dissolved oxygen is essential for aquatic organisms because they rely on it for their respiration process, similar to how animals breathe oxygen from the air.
  • Insufficient levels of dissolved oxygen can lead to hypoxia, a condition where organisms are deprived of the oxygen they need to survive. This can result in stress, reduced growth, reproductive issues, and even mortality in aquatic species.

Different species of aquatic organisms have varying tolerance levels for dissolved oxygen. For example:

  • Fish and other aquatic animals often require dissolved oxygen levels between 4 to 6 milligrams per liter (mg/L) to thrive.
  • Some species of fish, insects, and other aquatic organisms can tolerate lower levels of dissolved oxygen, even below 2 mg/L, while others require higher concentrations.

6. What are chemical oxygen demand and biological oxygen demand?

Chemical Oxygen Demand (COD):

  • COD is a measure of the amount of oxygen required to chemically oxidize and break down organic and inorganic substances present in water.
  • It provides an indication of the total amount of pollutants that can be chemically oxidized by a strong oxidizing agent. COD is expressed in milligrams per liter (mg/L) of oxygen consumed.
  • COD is useful in assessing the overall pollution load in a water sample, including both biodegradable and non-biodegradable substances.
  • It is commonly used for industrial wastewater monitoring, as it provides a rapid estimation of the organic content and potential pollution levels. However, COD does not differentiate between different types of pollutants or indicate the potential impact on aquatic life.

Biological Oxygen Demand (BOD):

  • BOD measures the amount of dissolved oxygen consumed by microorganisms (bacteria) during the biological degradation of organic matter in water.
  • It is a key indicator of the level of biodegradable organic pollutants present in water. BOD is expressed in milligrams per liter (mg/L) of oxygen consumed over a specific time period, usually 5 days (BODâ‚…).
  • BOD is particularly important in assessing the impact of organic pollution on aquatic ecosystems.
  • High BOD levels indicate that a water body may have a significant amount of organic pollutants, which can lead to oxygen depletion as microorganisms break down the organic matter. This oxygen depletion, known as hypoxia, can harm aquatic organisms and disrupt the ecological balance of the water body.

Comparing BOD and COD:

  • BOD primarily measures the biologically degradable organic matter and provides information about the potential impact on aquatic life.
  • COD measures both biologically and chemically degradable pollutants, giving an indication of the overall pollution load and oxygen demand.
  • BOD is a more specific and ecologically relevant parameter, but it takes longer to determine (5 days), while COD can be measured more quickly.
For Prelims: National Green Tribunal (NGT), National Green Tribunal Act, of  2010, Dissolved oxygen (DO), Chemical Oxygen demand (COD), and Biological Oxygen Demand (BOD).
For Mains: 1. Discuss the significance of Chemical Oxygen Demand (COD) and Biological Oxygen Demand (BOD) as critical indicators for assessing water pollution and quality. (250 Words)
 

Previous year Question

1. How is the National Green Tribunal (NGT) different from the Central Pollution Control Board (CPCB)? (UPSC 2018)
1. The NGT has been established by an Act whereas the CPCB has been created by the executive order of the Government.
2. The NGT provides environmental justice and helps reduce the burden of litigation in the higher courts whereas the CPCB promotes cleanliness of streams and wells, and aims to improve the quality of air in the country.
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
Answer: B
 
2. The National Green Tribunal Act, 2010 was enacted in consonance with which of the following provisions of the Constitution of India? (UPSC 2012)
1. Right of a healthy environment, construed as a part of the Right to life under Article 21
2. Provision of grants for raising the level of administration in the Scheduled Areas for the welfare of Scheduled Tribes under Article 275(1)
3. Powers and functions of Gram Sabha as mentioned under Article 243(A)
Select the correct answer using the codes given below:
A. 1 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3
Answer: A
Source: The Indian Express
 
 

PRESIDENT RULE

 
 
1. Context
 
A delegation of 10 MLAs from the Manipur Assembly met the Governor of the State and pressed for the formation of a viable government in Manipur that has been under President’s Rule since February 2025.
 
2. What is President's Rule?
 
  • President’s Rule, as outlined in Article 356, is invoked when a state’s constitutional machinery fails. In such cases, based on a Governor’s report or other relevant inputs, the President can issue a Proclamation to take over the state government’s functions, effectively placing them under the Union government’s control.
  • Additionally, the State Assembly’s powers are transferred to Parliament. However, the President does not have the authority to assume the powers of a High Court.
  • This proclamation must be presented before Parliament and will lapse in two months unless both Houses approve it.
  • It can be extended every six months, up to a maximum of three years, but after the first year, further extensions require either the declaration of an Emergency at the national or state level or a determination by the Election Commission that elections cannot be conducted in the state.
  • Article 356 does not specify the exact conditions for imposing President’s Rule, leaving it to the President’s discretion, based on the advice of the Union Council of Ministers, to determine whether governance in the state can continue as per constitutional provisions.
  • A 2016 Lok Sabha Secretariat report identified various instances of its imposition beyond issues like militancy and law and order, including defections by legislators, collapse of coalitions, no-confidence motions, resignations of Chief Ministers, absence of legislatures in newly formed states, and public unrest causing instability.
  • In the 1994 S.R. Bommai vs Union of India case, the Supreme Court outlined instances where the President’s Rule could or could not be applied, though it clarified that this list was not exhaustive
 
3. History of President's rule in India
 
 
  • President’s Rule has been enforced 135 times across 35 States and Union Territories, including some that no longer exist. The first instance occurred in June 1951 in Punjab when Chief Minister Gopi Chand Bhargava resigned due to internal conflicts within the Congress party.
  • Punjab has remained under Central administration for over a decade in total. The only region to have experienced President’s Rule for a longer duration is Jammu and Kashmir, where it has been in place for nearly 15 years, including its time as a Union Territory.
  • The longest uninterrupted periods were from 1990 to 1996 and from 2019 to 2024. Uttar Pradesh has seen President’s Rule imposed 10 times, making it one of the most frequently affected states after Manipur.
  • There have also been instances where Article 356 was applied even when the ruling party at the Centre and the State were the same, such as in Andhra Pradesh (1973), Assam (1981), Gujarat (1974), Karnataka (1990), and most recently in Manipur (2025).
  • A notable political use of President’s Rule occurred in 1977 when the newly elected Morarji Desai government dismissed nine Congress-ruled States, arguing that they had lost the electorate’s confidence after the Congress was defeated at the national level.
  • In response, when Indira Gandhi regained power in 1980, she similarly dismissed governments in nine States for the same reason. The Supreme Court at the time declined to intervene in these decisions
 
4. Why does the president's rule is not prevalent these days?
 
 
  • A few decades later, the S.R. Bommai verdict marked a turning point in judicial oversight of President’s Rule. The nine-judge Bench ruled that the President’s proclamation could be reviewed by the courts to determine whether it was issued based on any material, whether that material was relevant, or whether the decision was made in bad faith.
  • Former Attorney-General Soli Sorabjee had noted in his analysis of the 1994 judgment that this meant proclamations could be invalidated if found unconstitutional. Former Lok Sabha Secretary General P.D.T. Acharya highlighted that this served as a strong deterrent against arbitrary use of the provision.
  • From 1950 to 1994, President’s Rule was enforced 100 times, averaging 2.5 instances per year. In the three decades since, it has been applied 30 times, roughly once per year.
  • The most recent imposition, in Manipur, is the first since Puducherry in February 2021, marking almost four years without its use.
  • Since the Narendra Modi-led NDA government assumed office in 2014, President’s Rule has been imposed 11 times, including four instances in Jammu and Kashmir.
  • Courts have overturned the proclamation on two occasions— in Arunachal Pradesh and Uttarakhand
5. What is the Relation Between Article 356 and Article 355?
 

Article 355 and Article 356 of the Indian Constitution are closely related, as the former lays the foundation for the latter.

  • Article 355 – Duty of the Union to Protect States

    • It places an obligation on the Union government to protect every state against external aggression and internal disturbances.
    • It also ensures that the state government functions in accordance with constitutional provisions.
  • Article 356 – President’s Rule

    • If a state fails to function as per the Constitution, the President can invoke Article 356 based on the Governor’s report or other relevant inputs.
    • This provision allows the Union to assume control of the state’s administration temporarily.
6. Way Forward
 
Although Manipur is currently under President’s Rule, its Assembly has not been dissolved. Instead, it remains in a state of suspended animation. This means that the Assembly can be reinstated whenever conditions allow for the formation of a democratically elected government following the revocation of President’s Rule.
 
For Prelims: Article 356, Article 352, Article 360
 
For Mains: General Studies II - Polity & Governance
 
Previous Year Questions
 

1.During which Five Year Plan was the Emergency clamped, new elections took place and the Janata Party was elected? (2009)

(a) Third
(b) Fourth
(c) Fifth
(d) Sixth

Answer (c)

2. Which of the following are not necessarily the consequences of the proclamation of the President’s rule in a State? (2017)

  1. Dissolution of the State Legislative Assembly
  2. Removal of the Council of Ministers in the State
  3. Dissolution of the local bodies

Select the correct answer using the code given below:

(a) 1 and 2 only
(b) 1 and 3 only
(c) 2 and 3 only
(d) 1, 2 and 3

Answer (b)

Source: The Hindu
 

PURCHASING  MANAGERS INDEX (PMI)

 
 
1. Context
The HSBC India Manufacturing Purchasing Managers’ Index (PMI) came in at a three-month low of 57.6, although this was higher than the long-term average for the sector of 54.1.
 
2. What is the Purchasing Managers Index (PMI)?
The Purchasing Managers' Index (PMI) is an economic indicator that provides insights into the health of a country's manufacturing or services sector.
PMI is widely used by businesses, economists, and policymakers to gauge the economic performance and future trends in these sectors.
It is usually expressed as a numerical value that reflects the prevailing business conditions.
 
2.1. Key Aspects of PMI
  • PMI is typically calculated through surveys of purchasing managers in various industries. These managers are asked about their perception of different aspects of business activity, including new orders, production levels, employment, supplier deliveries, and inventories.
  • PMI is usually reported as a number between 0 and 100.
  • A PMI value above 50 generally indicates expansion in the sector, while a value below 50 suggests contraction. The farther the PMI is from 50, the stronger the perceived expansion or contraction.
  • PMI is considered a leading indicator because it provides insights into economic conditions before official economic data, such as GDP growth or employment figures, are released. It can be used to anticipate changes in economic activity.
  • PMIs are calculated separately for manufacturing and services sectors. A Manufacturing PMI focuses on the manufacturing sector, while a Services PMI provides insights into the services sector. These sector-specific PMIs can give a more detailed view of the economy.

Components: PMI is composed of several components, including:

  • New Orders: This component measures the number of new orders received by businesses. An increase in new orders often signals growing demand and economic expansion.
  • Production: This component reflects changes in production levels. An increase suggests increased economic activity.
  • Employment: The employment component indicates changes in the level of employment within the sector. An increase typically means job growth.
  • Supplier Deliveries: This measures the speed at which suppliers can deliver materials. Slower deliveries may indicate supply chain issues or increased demand.
  • Inventories: Inventory levels can be an indicator of expected demand. A decrease in inventories might suggest an expectation of rising demand.
3. Significance of PMI
  • The Purchasing Managers' Index (PMI) is a significant economic indicator with several important implications and uses
  • PMI serves as a barometer of the economic health of a country or region. A PMI above 50 generally indicates economic expansion, while a PMI below 50 suggests contraction.
  • This provides a quick and easily understandable snapshot of the direction of economic activity, making it a valuable tool for assessing the overall economic climate.
  • PMI is a leading indicator, meaning it often provides insights into economic conditions ahead of other official economic data, such as GDP growth or employment figures. As such, it is used by businesses, investors, and policymakers to anticipate changes in economic activity and make informed decisions
 
4. Way forward
Purchasing Managers' Index (PMI) is a valuable economic indicator that helps gauge the economic health and trends in the manufacturing and services sectors. It provides timely insights into business activity and is widely used by businesses and policymakers for decision-making and economic forecasting
 

 

Previous Year Questions

1.What does S & P 500 relate to? (UPSC CSE 2008)

(a) Supercomputer
(b) A new technique in e-business
(c) A new technique in bridge building
(d) An index of stocks of large companies

Answer: (d)

 
 
Source: The Hindu
 

HEATWAVE

 

1. Context

The monsoon has arrived more than a week in advance, giving a respite from the intense heat in India. A heatwave gripped India in early April, though heatwave conditions were observed as early as February 27–28 as large parts of the country witnessed temperatures soar.

2. What is a Heat Wave?

  • A heatwave is a period of abnormally high temperatures, a common phenomenon in India during the months of May-June and in some rare cases even extends till July.
  • Indian Meteorological Department (IMD) classifies heat waves according to regions and temperature ranges. As per IMD, the number of heatwave days in India has increased from 413 over 1981-1990 to 600 over 2011-2020.
  • This sharp rise in the number of heatwave days has resulted due to the increasing impact of climate change.
  • The last three years have been La Niña years, which has served as a precursor to 2023 likely being an El Niño year. (The El Niño is a complementary phenomenon in which warmer water spreads west­east across the equatorial Pacific Ocean.)
  • As we eagerly await the likely birth of an El Niño this year, we have already had a heat wave occur over northwest India.
  • Heat waves tend to be confined to north and northwest India in El Niño years.
 
Image Source:News18

3. How do Heat waves Occur?

  • Heat waves are formed for one of two reasons warmer air is flowing in from elsewhere or it is being produced locally.
  • It is a local phenomenon when the air is warmed by higher land surface temperature or because the air sinking down from above is compressed along the way, producing hot air near the surface.
  • First of all, in spring, India typically has air flowing in from the west­northwest. This direction of air­flow is bad news for India for several reasons.
  • Likewise, air flowing in from the northwest rolls in over the mountains of Afghanistan and Pakistan, so some of the compression also happens on the leeward side of these mountains, entering India with a bristling warmth.
  • While air flowing over the oceans is expected to bring cooler air, the Arabian Sea is warming faster than most other ocean regions.
  • Next, the strong upper atmospheric westerly winds, from the Atlantic Ocean to India during spring, control the near-surface winds.
  • Any time winds flow from the west to the east, we need to remember that the winds are blowing faster than the planet which also rotates from west to east.
  • The energy to run past the earth near the surface, against surface friction, can only come from above. This descending air compresses and warms up to generate some heat waves.

4. Impacts of heat waves in India

  • The frequent occurrence of heat waves also adversely affects different sectors of the economy.
  • For instance, the livelihood of poor and marginal farmers is negatively impacted due to the loss of working days.
  • Heatwaves also have an adverse impact on daily wage workers' productivity, impacting the economy.
  • Crop yields suffer when temperatures exceed the ideal range.
  • Farmers in Haryana, Punjab, and Uttar Pradesh have reported losses in their wheat crop in the past rabi season. Across India, wheat production could be down 6-7% due to heat waves.
  • Mortality due to heat waves occurs because of rising temperatures, lack of public awareness programs, and inadequate long-term mitigation measures.
  • According to a 2019 report by the Tata Center for Development and the University of Chicago, by 2100 annually, more than 1.5 million people will be likely to die due to extreme heat caused by climate change.
  • The increased heat wave will lead to an increase in diseases like diabetes, circulatory and respiratory conditions, as well as mental health challenges.
  • The concurrence of heat and drought events is causing crop production losses and tree mortality. The risks to health and food production will be made more severe by the sudden food production losses exacerbated by heat-induced labor productivity losses.
    These interacting impacts will increase food prices, reduce household incomes, and lead to malnutrition and climate-related deaths, especially in tropical regions.

5. How does air mass contribute to heat waves?

  • The other factors that affect the formation of heat waves are the age of the air mass and how far it has traveled.
  • The north northwestern heatwaves are typically formed with air masses that come from 800-1600 km away and are around two days old.
  • Heat waves over peninsular India on the other hand, arrive from the oceans, which are closer (around 200-400km) and are barely a day old. As a result, they are on average less intense.

6. Way ahead for Heat waves

  • Identifying heat hot spots through appropriate tracking of meteorological data and promoting timely development and implementation of local Heat Action Plans with strategic inter-agency coordination, and a response that targets the most vulnerable groups.
  • Review existing occupational health standards, labor laws, and sectoral regulations for worker safety in relation to climatic conditions.
  • Policy intervention and coordination across three sectors health, water, and power are necessary.
  • Promotion of traditional adaptation practices, such as staying indoors and wearing comfortable clothes.
  • Popularisation of simple design features such as shaded windows, underground water storage tanks, and insulating house materials.
  • Advance implementation of local Heat Action Plans, plus effective inter-agency coordination is a vital response that the government can deploy in order to protect vulnerable groups.

For Prelims & Mains

For Prelims: Heat Wave, India Meteorological Department (IMD), El Nino, Equatorial Pacific Ocean, La Nina, Malnutrition, Heat Action Plans.
For Mains: 1. Examine the various adverse impacts caused by heat waves and how India should deal with them.
 
Previous Year Questions
 
1.What are the possible limitations of India in mitigating global warming at present and in the immediate future? (UPSC CSE 2010)

1. Appropriate alternate technologies are not sufficiently available.

2. India cannot invest huge funds in research and development.

3. Many developed countries have already set up their polluting industries in India.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer (a)

India faces challenges in addressing Global Warming: Developing and underdeveloped nations lack access to advanced technologies, resulting in a scarcity of viable alternatives for combating climate change. Being a developing nation, India relies partially or entirely on developed countries for technology. Moreover, a significant portion of the annual budget in these nations is allocated to development and poverty alleviation programs, leaving limited funds for research and development of alternative technologies compared to developed nations. Analyzing the statements provided: Statements 1 and 2 hold true based on the aforementioned factors. However, Statement 3 is inaccurate as the establishment of polluting industries by developed countries within India is not feasible due to regulations governing industrial setup

Mains

1.Bring out the causes for the formation of heat islands in the urban habitat of the world. (UPSC CSE Mains GS 1 2013)

 

Source: The Hindu
 
 

RESERVE BANK OF INDIA (RBI)

 
 
 
1. Context
 
The Board of the Reserve Bank of India (RBI) on May 23 approved a record surplus transfer, or dividend, of Rs 2.69 lakh crore to the Central Government for the accounting year 2024-25. It followed a meeting of the central board of directors of the RBI on May 15.
 PM Modi launches 2 RBI schemes. All about the central bank initiatives -  Hindustan Times
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
 
 

MAHATMA GANDHI NATIONAL RURAL EMPLOYMENT GUARANTEE ACT (MGNREGA)

1. Context

The Ministry of Rural Development (MoRD) has proposed an allocation of Rs 5.23 lakh crore for the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) for five years until 2029-30
 

2. About the National Level Monitoring (NLM) report

  • The National Level Monitoring (NLM) report is a study conducted by the Ministry of Rural Development (MoRD) to assess the implementation of various rural development programs in India.
  • The report is based on field visits and interviews with stakeholders at the grassroots level.
  • The NLM report is an important tool for the government to identify areas where improvement is needed and track rural development programs' progress.
  • The report also provides valuable insights into the challenges faced by rural communities and the impact of government interventions.

The NLM report typically identifies the following areas:

  • The coverage of rural development programs
  • The quality of implementation of rural development programs
  • The impact of rural development programs on the lives of rural people

The NLM report also provides recommendations to the government on improving the implementation of rural development programs and making them more effective.

 

3. The findings of the NLM report

  • In 2017-18, the NLM report found that the quality of construction of 87% of the verified works under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) was satisfactory. However, the report also found that only 139 out of 301 districts had seven registers maintained satisfactorily.
  • In 2018-19, the NLM report found that the job cards, an important document that records entitlements received under MGNREGA, were not regularly updated in many districts. The report also found that there were significant delays in payments to workers.
  • In 2019-20, the NLM report found that the Pradhan Mantri Awaas Yojana - Gramin (PMAY-G) program was facing challenges due to a shortage of construction materials and skilled labour. The report also found that there were delays in the processing of applications and the release of funds.
  • The NLM report for 2020-21 found that the coverage of rural development programs had improved significantly in recent years. However, the report also found that there was still a need to improve the quality of implementation of these programs.
  • The NLM report for 2021-22 found that the impact of rural development programs on the lives of rural people had been positive overall. However, the report also found that there were still some disparities in the impact of these programs across different regions and social groups.
 

4. Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA)

The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) is a social welfare program that guarantees 100 days of unskilled manual wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work. The Act was enacted by the Government of India in 2005 and came into force on February 2, 2006.

4.1. Mandate and Goals

  • The mandate of MGNREGA is to provide employment and ensure food security for rural households.
  • The scheme also aims to strengthen natural resource management, create durable assets, improve rural infrastructure, and promote social equity.
  • The goals of MGNREGA are to Reduce rural poverty, Increase employment opportunities, Improve food security, Create durable assets, Improve rural infrastructure and Promote social equity. 

4.2. Core Objectives 

  •  The primary goal of MGNREGA is to provide at least 100 days of guaranteed wage employment in a financial year to every rural household whose adult members volunteer to do unskilled manual work.
  • The program aims to reduce poverty and distress by offering employment opportunities, especially during seasons of agricultural unemployment.
  • MGNREGA encourages the creation of productive and durable assets such as water conservation structures, rural infrastructure, and land development. These assets not only improve rural livelihoods but also contribute to sustainable development.
  • The Act promotes gender equality by ensuring that at least one-third of the beneficiaries are women and that their participation in the workforce is actively encouraged.

4.3. Key Stakeholders 

  • Rural households are the primary beneficiaries and participants in the MGNREGA scheme.
  • Gram Panchayats play a pivotal role in implementing the program at the grassroots level. They are responsible for planning, execution, and monitoring of MGNREGA projects within their jurisdiction.
  • The central government provides the funds and sets the broad guidelines, while the state governments are responsible for the program's effective implementation.
  • The DPC is responsible for the overall coordination and monitoring of MGNREGA activities within a district.
  • Rural labourers, both skilled and unskilled, participate in MGNREGA projects and directly benefit from the program.

4.4. Role of Gram Sabha and Gram Panchayat

  • The Gram Sabha is the village assembly consisting of all registered voters in a village. Its role in MGNREGA includes discussing and approving the annual development plan, ensuring transparency in project selection, and conducting social audits to monitor program implementation.
  • The Gram Panchayat is responsible for planning, approving, executing, and monitoring MGNREGA projects within its jurisdiction. It also maintains records of employment provided, ensures timely wage payments, and conducts social audits. The Panchayat is accountable for the effective utilization of MGNREGA funds.

4.5. Issues with MGNREGA

  •  Delayed wage payments to labourers have been a persistent issue, affecting the livelihoods of beneficiaries.
  •  There have been cases of corruption and leakages in the implementation of MGNREGA projects, leading to suboptimal outcomes.
  • Administrative inefficiencies, complex procedures, and bureaucratic hurdles have hampered program delivery.
  • Some argue that the quality and effectiveness of assets created under MGNREGA projects have been variable and not always aligned with the intended goals.
  • Not all eligible rural households are provided 100 days of guaranteed employment, which can limit the program's impact.
  • Adequate budget allocation to meet the program's demands and inflation-adjusted wages remains a concern.

5. Conclusion

MGNREGA has made a positive impact on the lives of rural people, particularly in terms of employment opportunities and the creation of durable assets. It remains a crucial tool in India's efforts to promote rural development, reduce poverty, and achieve social equity. Addressing the identified issues will be critical in ensuring the continued success and effectiveness of the program in the years to come.

 

For Prelims: MGNREGA, National Level Monitoring (NLM) report, Ministry of Rural Development, rural development, Pradhan Mantri Awaas Yojana - Gramin (PMAY-G), 
For Mains: 
1. Evaluate the importance of the Mahatma Gandhi National Rural Employment Guarantee Act in the context of rural development and food security in India. How does MGNREGA contribute to sustainable development and rural infrastructure improvement? (250 Words)
 
 
 
Previous Year Questions
 
Prelims

1. Among the following who are eligible to benefit from the “Mahatma Gandhi National Rural Employment Guarantee Act”? (UPSC 2011)

(a) Adult members of only the scheduled caste and scheduled tribe households
(b) Adult members of below poverty line (BPL) households
(c) Adult members of households of all backward communities
(d) Adult members of any household

Answer: D

2. The Multi-dimensional Poverty Index developed by Oxford Poverty and Human Development Initiative with UNDP support covers which of the following? (UPSC 2012)

  1. Deprivation of education, health, assets and services at household level
  2. Purchasing power parity at national level
  3. Extent of budget deficit and GDP growth rate at national level

Select the correct answer using the codes given below:

(a) 1 only             (b) 2 and 3 only         (c) 1 and 3 only             (d) 1, 2 and 3

Answer: A

3. Which of the following grants/grant direct credit assistance to rural households? (UPSC 2013)

  1. Regional Rural Banks
  2. National Bank for Agriculture and Rural Development
  3. Land Development Banks

Select the correct answer using the codes given below:

(a) 1 and 2 only         (b) 2 only                     (c) 1 and 3 only                (d) 1, 2 and 3

Answer: C

4. How does the National Rural Livelihood Mission seek to improve livelihood options of rural poor? (UPSC 2012)

  1. By setting up a large number of new manufacturing industries and agribusiness centres in rural areas
  2. By strengthening ‘self-help groups’ and providing skill development
  3. By supplying seeds, fertilisers, diesel pump-sets and micro-irrigation equipment free of cost to farmers

Select the correct answer using the codes given below:

(a) 1 and 2 only          (b) 2 only                        (c) 1 and 3 only              (d) 1, 2 and 3

Answer: B 

5. Under the Pradhan Mantri Awaas Yojana-Gramin (PMAY-G), the ratio of the cost of unit assistance to be shared between the Central and State Governments is: (MP Patwari 2017)

A. 60:40 in plain areas and 90:10 for North Eastern and the Himalayan States
B. 70:30 in plain areas and 80:20 for North Eastern and the Himalayan States
C. 50:50 in plain areas and 70:30 for North Eastern and the Himalayan States
D. 75:25 in Plain areas and 85:15 for North Eastern and the Himalayan States
 
Answer: A
 
Mains
 
1. The basis of providing urban amenities in rural areas (PURA) is rooted in establishing connectivity. Comment (UPSC 2013)
 
Source: indianexpress
 
 

DIRECTORATE OF ENFORCEMENT (ED)

1. Context

The Supreme Court recently reprimanded the Enforcement Directorate (ED) for “crossing all limits” and “violating the federal structure” by conducting raids on government-run liquor retailer Tamil Nadu State Marketing Corporation (TASMAC)

2. About the Directorate of Enforcement 

The Directorate of Enforcement (ED) is a law enforcement agency in India that operates under the Department of Revenue, Ministry of Finance. It is responsible for enforcing economic laws and fighting financial crimes in the country. The primary objective of the Directorate of Enforcement is to enforce the provisions of two major laws:

  • Foreign Exchange Management Act (FEMA): This law deals with foreign exchange and foreign trade in India. The ED ensures compliance with FEMA regulations and investigates violations related to foreign exchange transactions.

  • Prevention of Money Laundering Act (PMLA): The ED is also responsible for implementing the provisions of the PMLA, which focuses on preventing money laundering and combating the financing of terrorism. It investigates cases related to money laundering and takes appropriate action against those involved.

The Directorate of Enforcement plays a crucial role in maintaining the economic stability of the country by addressing financial offenses and ensuring compliance with relevant laws. It conducts investigations, searches, and seizures, and has the authority to attach and confiscate properties acquired through illegal means

3. Establishment and History

  • The Directorate of Enforcement was established on 1st May 1956, as the "Enforcement Unit" within the Department of Economic Affairs.
  • Its primary focus was on preventing and detecting violations of the Foreign Exchange Regulation Act (FERA) of 1947.
  • Over the years, the agency's role expanded, and in 1999, the Enforcement Directorate was established as a separate entity under the Ministry of Finance.
  • The enactment of the Prevention of Money Laundering Act (PMLA) in 2002 further broadened its jurisdiction, giving it the power to investigate cases related to money laundering.
  • Since its establishment, the ED has played a crucial role in combating economic offences and ensuring compliance with economic laws in India.
  • It has been involved in several high-profile cases, including those related to financial scams, money laundering by influential individuals, and cross-border financial crimes.
  • The ED collaborates with various domestic and international agencies, including financial intelligence units, law enforcement agencies, and Interpol, to gather information, share intelligence, and effectively coordinate efforts to combat economic offences.

4. Functions and Roles of ED

4.1. Enforcing Economic Laws

  • The primary function of the ED is to enforce two key economic laws in India: the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA).
  • It ensures compliance with these laws and investigates money laundering, foreign exchange violations, and economic fraud cases.

4.2. Money Laundering Investigations

  • The ED investigates cases involving money laundering, which is the process of concealing the origins of illegally obtained money to make it appear legitimate.
  • It identifies and seizes properties and assets derived from illicit activities and prevents their further use.

4.3. Foreign Exchange Violations

  •  The ED is responsible for investigating cases related to violations of foreign exchange laws and regulations.
  • It monitors and controls foreign exchange transactions to maintain the stability of the Indian rupee and prevent illegal activities such as smuggling and illegal money transfers.

4.4 Financial Frauds

  • The ED also investigates and takes action against financial frauds, including bank frauds, Ponzi schemes, and other fraudulent activities affecting the Indian financial system.
  • It works closely with other law enforcement agencies, such as the Central Bureau of Investigation (CBI), to tackle complex financial crimes.

5.  Challenges

5.1. The complexity of economic crimes.

  • Economic crimes are often complex and involve a variety of financial transactions.
  • This can make it difficult for the ED to trace the proceeds of crime and to build a case against the perpetrators.

5.2. The difficulty of tracing the proceeds of crime

  • The proceeds of crime are often hidden in complex financial structures, making it difficult for the ED to track them down.
  • The ED also faces challenges in obtaining information from foreign jurisdictions, where the proceeds of crime may have been transferred.

5.3. The lack of international cooperation

  • Economic crime is often transnational, making it difficult for the ED to cooperate with foreign law enforcement agencies.
  • This is due to differences in legal systems, as well as political and economic considerations.

5.4. Political interference

  • The ED has been accused of being used as a political tool by the ruling party to target its opponents and critics.
  • This has raised questions about the independence and impartiality of the ED.

5.5. Lack of transparency

  • The ED has been criticized for its lack of transparency.
  • The agency does not publish its annual reports, and it is difficult to obtain information about its investigations.
  • This has made it difficult for the public to hold the ED accountable.

5.6. Human rights violations

  •  The ED has been accused of violating the human rights of those it investigates.
  • The agency has been accused of using coercive tactics, such as prolonged detention and interrogation, to extract confessions from suspects.

5.7. The limited resources

  • The ED is a relatively small agency with limited resources.
  • This can make it difficult for the ED to investigate complex economic crimes and prosecute the perpetrators.

6. Conclusion

  • The Directorate of Enforcement in India plays a crucial role in enforcing economic laws, preventing money laundering, and combating financial crimes.
  • With its specialized expertise, investigative capabilities, and coordination with domestic and international partners, the ED contributes to the integrity of the financial system, national security, and the country's overall socio-economic development.
For Prelims: Directorate of Enforcement, Financial Action Task Force, Prevention of Money Laundering Act (PMLA), the Foreign Exchange Management Act (FEMA), Supreme Court, Foreign Exchange Regulation Act (FERA) of 1947, Central Bureau of Investigation, 
For Mains: 
1. Discuss the establishment and evolution of the Directorate of Enforcement in India. Explain its key functions and roles in combating economic offences. (250 Words)
 
 

Previous Year Questions

1. Which one of the following is not correct in respect of Directorate of Enforcement ? (CDS  2021)
A. It is a specialized financial investigation agency under the Department of Revenue, Ministry of Finance.
B. It enforces the Foreign Exchange Management Act, 1999.
C. It enforces the Prevention of Money Laundering Act, 2002.
D. It enforces the Prohibition of Benami Property Transaction Act, 1988.
 
Answer: D
 
2. The Prevention of Money Laundering Act, 2002 become effective since which one of the following dates? (UKPSC RO/ARO 2012)
 
A. July 2002          B. August 2003        C. July 2004         D. July 2005
 
Answer: D
 
3. FEMA (Foreign Exchange Management Act) was finally implemented in the year (UPPSC  2013)
A. 1991         B. 1997         C. 2000             D. 2007
 
Answer: C
 
4. The Foreign Exchange Regulation Act was replaced by the ______ in India. (SSC Steno 2020) 
A. Foreign Exchange Currency Act
B. Foreign Exchange Finances Act
C. Foreign Exchange Funds Act
D. Foreign Exchange Management Act
 
Answer: D
 
5. "Central Bureau of Intelligence and Investigation" is listed in the __________ list given in the Seventh Schedule of the Constitution of India. (SSC CGL 2017) 
A. Union             B. State             C. Global          D. Concurrent
 
Answer: A
 
Source: The Indian Express
 

Share to Social