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Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 9th July 2022

Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test -Click Here

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 8th July 2022

Archives (PRELIMS & MAINS Focus) Mission Vatsalya Scheme Open in new window Syllabus Prelims – Current Affairs Mains – GS 1 (Social Issues) In News: Ministry of Women and Child Development issues Guidelines for Mission Vatsalya Scheme About the Scheme The MW&CD is implementing a Centrally Sponsored Scheme “Mission Vatsalya” erstwhile Child Protection Services (CPS) Scheme, since 2009-10 for the welfare and rehabilitation of children. The objective of Mission Vatsalya is to secure a healthy and happy childhood for each and every child in India. Components under Mission Vatsalya include– Improve functioning of statutory bodies; Strengthen service delivery structures; Upscale institutional care/services; Encourage non-institutional community-based care; emergency outreach services; Training and capacity building. Guidelines The guidelines detail the process by which funds will be disbursed to states under various heads by defining institutionalised arrangements. Funds to states will be approved through the Mission Vatsalya Project Approval Board (PAB), which will be chaired by the WCD Secretary, who will scrutinise and approve annual plans and financial proposals received from states and UTs for release of grants. Secretaries of the departments of Home Affairs, Social Justice and Empowerment, Panchayati Raj, Rural Development, Housing and Urban Affairs, Labour, Youth Affairs and Sports, Department of School Affairs and Literacy, and the Niti Aayog CEO, will be PAB members. It will be implemented as a Centrally Sponsored Scheme in partnership with state governments and UT administrations, with a fund-sharing pattern in a 60:40 ratio. For the eight states in the Northeast — as well as Himachal Pradesh, Uttarakhand and the UT of Jammu and Kashmir — the Centre and state/UT’s share will be 90:10. The Centre will cover the whole cost in UTs without a legislature. At state level, there will be a committee headed by the Chief Secretary to monitor, review and promote convergence in the implementation of the scheme. There will also be a district-level committee. The guidelines state that Mission Vatsalya will support State Adoption Resource Agencies (SARA), which will support the Central Adoption Resource Authority (CARA) in promoting in-country adoption and regulating inter-country adoption. SARA shall coordinate, monitor and develop the work related to non-institutional care, including adoption in the state. The Mission envisages setting up cradle baby reception centres in at least one specialised adoption agency in a district. Mission Vatsalya will execute a 24×7 helpline service for children, as defined under JJ Act, 2015. Separate children’s homes based on gender (including separate homes for transgender children) and age will be established for children in need of care, as well as for special needs children. States/UTs have also been directed to focus on special needs children in child care institutions, who are unable to attend school with physical or mental disabilities Financial support has also been prescribed for vulnerable children living with extended families or in foster care, supporting their education, nutrition and health needs. After-care has been provided for, for children leaving a child care institution on completion of 18 years, who will now be provided with financial support to facilitate the child’s re-integration into the mainstream of society. This support could also include finances to set up businesses. Under the guidelines, state governments are required to take up the exercise to grade each child care institution (CCI) at fixed intervals. The grading will be done based on infrastructure, quality of services, wellbeing of children, especially in terms of health and education, restoration and rehabilitation of children, etc. Source:Pib.gov Indian Express Previous Year Question Q.1) What is the aim of the programme ‘Unnat Bharat Abhiyan’? (2017) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities. Connecting institutions of higher education with local communities to address development challenges through appropriate technologies. Strengthening India’s scientific research institutions in order to make India a scientific and technological power. Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them. Sub-categorising OBCs Open in new window Syllabus Prelims – Polity – Current Affairs Mains – GS 2 (Governance) In News: The Justice Rohini Commission for sub-categorisation of OBCs has got yet another extension. The Commission, constituted nearly five years ago, has got 10 extensions so far, and now has until January 31 next year to submit its report. What is sub-categorisation of OBCs? The idea is to create sub-categories within the larger group of OBCs for the purpose of reservation. OBCs are granted 27% reservation in jobs and education under the central government. For OBCs, the debate arises out of the perception that only a few affluent communities among the over 2,600 included in the Central List of OBCs have secured a major part of the 27% reservation. The argument for creating sub-categories within OBCs is that it would ensure “equitable distribution” of representation among all OBC communities. It was to examine this that the Rohini Commission was constituted on October 2, 2017. What is the Commission’s brief? It was originally set up with three terms of reference: To examine the extent of inequitable distribution of benefits of reservation among the castes or communities included in the broad category of OBCs with reference to such classes included in the Central List. To work out the mechanism, criteria, norms and parameters in a scientific approach for sub-categorisation within such OBCs To take up the exercise of identifying the respective castes or communities or sub-castes or synonyms in the Central List of OBCs and classifying them into their respective sub-categories. A fourth term of reference was added on January 22, 2020. To study the various entries in the Central List of OBCs and recommend correction of any repetitions, ambiguities, inconsistencies and errors of spelling or transcription. What have its findings been so far? In 2018, the Commission analysed the data of 3 lakh central jobs given under OBC quota over the preceding five years and OBC admissions to central higher education institutions Over the preceding three years. The findings were: 97% of all jobs and educational seats have gone to just 25% of all sub-castes classified as OBCs; 24.95% of these jobs and seats have gone to just 10 OBC communities; 983 OBC communities — 37% of the total — have zero representation in jobs and educational institutions; 994 OBC sub-castes have a total representation of only 2.68% in recruitment and admissions. Source: Indian Express Dragon Fruit Open in new window Syllabus Prelims – Geography In News: Centre to promote dragon fruit cultivation in 50,000 hectares. Following the footsteps of the Gujarat and Haryana Governments, the Centre has decided to promote the cultivation of dragon fruit, known as a super fruit for its health benefits. The Centre feels that considering the cost effectiveness and global demand for the fruit due to its nutritional values, its cultivation can be expanded in India. At present, the fruit is cultivated in 3,000 hectares; the plan is to increase cultivation to 50,000 hectares in five years. Dragon Fruit The dragon fruit – Hylocereus undatus is indigenous to the Americas. It is a member of the cacti family. It is also known as ‘Pitaya’, ‘Pitahaya’, strawberry pear, noblewoman and queen of the night throughout the world. Features: Its flowers are hermaphrodites (male and female organs in the same flower) in nature and open at night. The plant sustains yield for more than 20 years, is high in nutraceutical and good for value-added processing industries. It is a rich source of vitamins and minerals. Climatic Condition: It is hardy and grows in diverse climatic conditions with varied soils, especially in the semi-arid and arid regions of India. Popularity in India: The dragon fruit was introduced to home gardens in India in the 1990s. The low maintenance and high profitability of dragon fruits has attracted the farming community throughout India. The cost of cultivation is initially high. But the plant doesn’t need productive land; it gives maximum production from non-productive, less fertile area. Presently Mizoram tops among the States that cultivate this fruit. India is now importing about 15,491 tonnes of dragon fruits and has potential to match the production of China, where cultivation of the fruit takes place in 40,000 hectares, and Vietnam, which grows the fruit in 60,000 hectares. Source: The Hindu Previous Year Question Q.1) Consider the following statements: (2021) Moringa (drumstick tree) is a leguminous evergreen tree. Tamarind tree is endemic to South Asia. In India, most of the tamarind is collected as minor forest produce. India exports tamarind and seeds of moringa. Seeds of moringa and tamarind can be used in the production of biofuels. Which of the statements given above are correct? 1, 2, 4 and 5 3, 4 and 5 1, 3 and 4 1, 2, 3 and 5 Derecho Open in new window Syllabus Prelims – Geography In News: Some states of USA were hit by a storm system called a derecho. As the storm hit, it turned the skies green. What is a derecho? A derecho, according to the US’s National Weather Service is a widespread, long-lived, straight-line windstorm that is associated with a band of rapidly moving showers or thunderstorms. The name comes from the Spanish word ‘la derecha’ which means ‘straight’. Straight-line storms are those in which thunderstorm winds have no rotation unlike a tornado. These storms travel hundreds of miles and cover a vast area. Being a warm-weather phenomenon, a derecho generally – not always – occurs during summertime beginning May, with most hitting in June and July. They are a rare occurrence as compared to other storm systems like tornadoes or hurricanes. For a storm to be classified as a derecho it must have wind gusts of at least 93 km per hour; wind damage swath extending more than 400 km. Why did the sky turn green during the derecho that hit US recently? Severe thunderstorms result in a ‘green sky’ due to light interacting with the huge amount of water they hold. It is believed that the big raindrops and hail scatter away all but the blue wavelengths due to which primarily blue light penetrates below the storm cloud. This blue then combines with the red-yellow of the afternoon or the evening sun to produce green. Different types of derechos They fall into three categories – progressive, serial and hybrid. A progressive derecho is associated with a short line of thunderstorms that may travel for hundreds of miles along a relatively narrow path. It is a summer phenomenon. A serial derecho has an extensive squall line – wide and long – sweeping across a large area. It usually occurs during spring or fall. Hybrid ones have the features of both progressive and serial derechos. Where do derechos usually occur? They mostly occur across central and eastern parts of the United States. Derechos have also been documented elsewhere across the world. In 2010, Russia witnessed its first documented derecho. They have also swept through Germany and Finland, and more recently in Bulgaria and Poland. Source: Indian Express Previous Year Question Q.1) Consider the following statements: (2020) Jet streams occur in the Northern Hemisphere only. Only some cyclones develop an eye. The temperature inside the eye of a cyclone is nearly 10°C lesser than that of the surroundings. Which of the statements given above is/are correct? 1 only 2 and 3 only 2 only 1 and 3 only Intergovernmental Committee of UNESCO’s 2003 Convention for the Safeguarding of the Intangible Cultural Heritage Open in new  window Syllabus Prelims – Current Affairs In News: India has been elected as a member of the Intergovernmental Committee of UNESCO’s 2003 Convention for the Safeguarding of the Intangible Cultural Heritage (ICH) for the 2022-2026 cycle. India has served as a member of the ICH Committee twice — from 2006 to 2010 and from 2014 to 2018. Intergovernmental Committee The Intergovernmental Committee of the 2003 Convention consists of 24 members and is elected in the General Assembly of the Convention States Members to the Committee are elected for a term of four years. The core functions of the Intergovernmental Committee include promoting the objectives of the Convention, providing guidance on best practices, and making recommendations on measures for the safeguarding of intangible cultural heritage. The Committee also examines requests submitted by States Parties for the inscription of intangible heritage on the Lists as well as proposals for programmes and projects. Some of the priority areas that India will focus upon include fostering community participation, strengthening international cooperation through intangible heritage, promoting academic research on intangible cultural heritage, and aligning the work of the Convention with the UN Sustainable Development Goals. India ratified the 2003 Convention for the Safeguarding of the Intangible Cultural Heritage in September 2005. With 14 inscriptions on the Representative List of Intangible Cultural Heritage of Humanity, India also ranks high in the listing of intangible cultural heritage. After the inscription of Durga Puja in 2021, India submitted the nomination for Garba of Gujarat to be discussed in 2023. Source: Pib.gov Previous Year Question Q.1) With Reference to the “United Nations Credentials Committee”, consider the following statements: (2022) It is a committee set up by the UN Security Council and works under its supervision. It traditionally meets in March, June and September every year. It assesses the credentials of all UN members before submitting a report to the General Assembly for approval. Which of the statements given above is/are correct? 3 only 1 and 3 2 and 3 1 and 2 Bharat NCAP (New Car Assessment Programme) Open in new  window Syllabus Prelims – Current Affairs Mains – GS 2 (Governance) In News: Recently, Union Minister for Road, Transport and Highways approved a Draft GSR (general statutory rules) Notification seeking comments on a proposal to introduce the Bharat New Car Assessment Program (Bharat-NCAP). What is Bharat NCAP? It is a new car safety assessment program which proposes a mechanism of awarding ‘Star Ratings’ to automobiles based upon their performance in crash tests. Bharat NCAP standard is aligned with global benchmarks and it is beyond minimum regulatory requirements. Bharat NCAP Rating: The proposed Bharat NCAP assessment will allocate Star Ratings from 1 to 5 stars. The testing of vehicles for this programme will be carried out at testing agencies, with the necessary infrastructure. The voluntary Bharat NCAP would assign vehicles between one and five stars on parameters such as Adult Occupant Protection (AOP), Child Occupant Protection (COP) and Safety Assist Technologies (SAT). Applicability: It will be applicable on type approved motor vehicles of category M1 with gross vehicle weight less than 3.5 tonnes, manufactured or imported in the country. M1 category motor vehicles are used for the carriage of passengers, comprising eight seats, in addition to driver’s seat. Significance The proposed move follows focus on zero tolerance for road accidents. It is intended to increase the export-worthiness of vehicles and competition on safety parameters among manufacturers, as well as instil consumer confidence in their safety. Bharat NCAP will prove to be a critical instrument in making our automobile industry Aatmanirbhar with the mission of making India the Number 1 automobile hub in the world. Source: The Hindu Foreign Exchange Management Act (FEMA) Open in new  window Syllabus: Prelims – Polity In News: Times Group’s Top Management Questioned by ED in FEMA Case Foreign Exchange Management Act, 1999 The legal framework for the administration of foreign exchange transactions in India is provided by the Foreign Exchange Management Act, 1999. Under the FEMA, which came into force with effect from 1st June 2000, all transactions involving foreign exchange have been classified either as capital or current account transactions. Current Account Transactions: All transactions undertaken by a resident that do not alter his / her assets or liabilities, including contingent liabilities, outside India are current account transactions. Example: payment in connection with foreign trade, expenses in connection with foreign travel, education etc. Capital Account Transactions: It includes those transactions which are undertaken by a resident of India such that his/her assets or liabilities outside India are altered (either increased or decreased). Example: investment in foreign securities, acquisition of immovable property outside India etc. Source: Indian Express PMCARES Fund Open in new  window Syllabus: Prelims – Current Affairs In News: The Delhi High Court stayed a Central Information Commission (CIC) order directing the Income Tax Department to provide copies of all documents submitted by PM CARES Fund while applying for exemption under the Income Tax Act, and file notings granting the approval. Hearing a petition by the department against the CIC order, the court took note of a submission that the question whether PM CARES Fund is a public authority is currently pending before a division bench of the court. Background The RTI applicant, had sought the information from I-T Department in May 2020. While applicant’s RTI application was rejected by the authorities on the ground that PM CARES Fund is not covered under the RTI Act, the CIC said the issue regarding definition of public authority has been unnecessarily dragged into the matter, as the applicant has not filed the RTI application with PM Cares Fund but with the public authority itself. It directed the I-T Department to disclose copies of documents submitted in the exemption application by PM CARES Fund, and of file notings granting the approval. The I-T Department argued that the CIC has failed to consider the statutory bar contained in Section 138(1)(b) of IT Act, which provides the authorities the discretion whether information relating to any assessee should be disclosed in public interest or not. I-T dept also stated additionally, there is a further bar, which states that his decision will be final and shall not be called into question in any court of law. Wherever a statute provides for such a restriction, the courts have consistently held that the issue which is in the exclusive domain of the authority specified in the statute, the same issue cannot therefore be open to examination by another statutory authority under another legislation being the RTI Act 2005 herein. Prime Minister’s Citizen Assistance and Relief in Emergency Situations Fund (PM CARES Fund) Established in March 2020 It has been registered as a Public Charitable Trust. The trust deed of PM CARES Fund has been registered under the Registration Act, 1908. Prime Minister is the ex-officio Chairman of the PM CARES Fund and Minister of Defence, Minister of Home Affairs and Minister of Finance, Government of India are ex-officio Trustees of the Fund. The Chairperson of the Board of Trustees shall have the power to nominate three trustees to the Board of Trustees who shall be eminent persons in the field of research, health, science, social work, law, public administration and philanthropy. Funding: The fund consists entirely of voluntary contributions from individuals/organisations and does not get any budgetary support. Exemptions: Donations to PM CARES Fund would qualify for 100% exemption under the Income Tax Act, 1961. Donations to PM CARES Fund will also qualify to be counted as Corporate Social Responsibility (CSR) expenditure under the Companies Act, 2013 PM CARES Fund has also got exemption under the FCRA and a separate account for receiving foreign donations has been opened. Source: Indian Express Daily Practice MCQs Daily Practice MCQs Q.1) Consider the following statements about Mission Vatsalya Scheme It is a Central Sector Scheme 10 for the welfare and rehabilitation of children. Under the scheme funds to states will be approved through the Mission Vatsalya Project Approval Board (PAB) Mission Vatsalya Project Approval Board (PAB) will be chaired by Minister of Women and Child Development Choose the incorrect statements: 1 and 3 1, 2 and 3 1 only 3 only Q.2) Consider the following statements A derecho is a warm-weather phenomenon Derecho a widespread straight-line windstorm that is associated with a band of rapidly moving showers Choose the correct statements: 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.3) Consider the following statements about PM CARES Fund It has been registered as a Public Charitable Trust Home Minister is the ex-officio Chairman of the PM CARES Fund Donations to PM CARES Fund will also qualify to be counted as Corporate Social Responsibility (CSR) PM CARES Fund has got exemption under the Foreign Contribution (Regulation) Act, 2010. Choose the correct code: 1, 2 and 3 1 and 3 2 and 4 1, 3 and 4 Comment the answers to the above questions in the comment section below!! ANSWERS FOR ’8th JULY 2022 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs. ANSWERS FOR 7th JULY 2022 – Daily Practice MCQs Answers- Daily Practice MCQs Q.1) – a Q.2) – b Q.3) – b

Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 8th July 2022

Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions. To take the Test -Click Here

Baba’s Explainer

Baba's Explainer - Non Fungible Tokens (NFTs)

ARCHIVES Syllabus GS-3:Science and Technology- developments and their applications and effects in everyday life.  Context: Non fungible tokens (NFTs) have, thanks to their ability to assign value to everything from art to music to a simple selfie, taken the world by storm. The sales of NFTs surged $25 billion in 2021 as the crypto asset exploded in popularity, fuelled by the rising interest of celebrities and tech evangelists. Where Bitcoin was hailed as the digital answer to currency, NFTs are now being touted as the digital answer to collectables, but plenty of sceptics fear they’re a bubble waiting to burst. Also, With the two most valuable cryptocurrencies, Bitcoin and Ethereum, hit hard in recent times, attention has returned to the newest type of crypto asset – NFTs. What is a non-fungibility? In economics, a fungible asset is something with units that can be readily interchanged – like money. With money, one can swap a £10 note for two £5 notes and it will have the same value. However, if something is non-fungible, this is impossible – it means it has unique properties so it can’t be interchanged with something else. It could be a house, or a painting such as the Mona Lisa, which is one of a kind. One can take a photo of the painting or buy a print but there will only ever be one original painting. What are NFTs? NFTs are “one-of-a-kind” assets in the digital world that can be bought and sold like any other piece of property, but which have no tangible form of their own. The digital tokens can be thought of as certificates of ownership for virtual or physical assets. Anything that can be converted into a digital form can be an NFT. Everything from your drawings, photos, videos, GIF, music, in-game items, selfies, and even a tweet can be turned into an NFT, which can then be traded online using cryptocurrency. But what makes NFTs unique from other digital forms is that it is backed by Blockchain technology. Blockchain is a distributed ledger where all transactions are recorded. It is like your bank passbook, except all your transactions are transparent and can be seen by anyone and cannot be changed or modified once recorded. Therefore, Non-fungible tokens (NFTs) are designed to be i) cryptographically verifiable, ii) unique or scarce and iii) easily transferable. Leveraging cryptographic signatures native to the blockchain on which an NFT is issued, one can easily determine the origin and the current owner of the asset in question in seconds. How do NFTs work? Traditional works of art such as paintings are valuable precisely because they are one of a kind. But digital files can be easily and endlessly duplicated. With NFTs, artwork can be “tokenised” to create a digital certificate of ownership that can be bought and sold. NFT works on blockchain as it gives users complete ownership of a digital asset. As with crypto-currency, a record of who owns what is stored on a shared ledger known as the blockchain. The records cannot be forged because the ledger is maintained by thousands of computers around the world. For instance, if you’re a sketch artist, and if you convert your digital asset to an NFT, what you get is proof of ownership, powered by Blockchain. Legally, these tokens are a mix of a deed, a certificate and membership rights. So why are people willing to spend millions on something they could easily screenshot or download? In simple words, when you list your NFT on a marketplace, you pay something called a gas fee (transaction fee) for using the Blockchain, following which your digital art is then recorded on Blockchain, mentioning that you (your address) own the particular NFT. This gives you full ownership—which cannot be edited or modified by anyone, including the marketplace owner. An NFT is thus created or “minted”, to get exclusive ownership rights. NFTs can have only one owner at a time. Apart from exclusive ownership, NFT owners can also digitally sign their artwork and store specific information in their NFTs metadata. This will be only viewable to the individual who bought the NFT. How is an NFT different from cryptocurrency? Like physical money, cryptocurrencies are fungible, meaning that they can be traded or exchanged, one for another. For example, one bitcoin is always equal in value to another bitcoin. Similarly, a single unit of ether is always equal to another unit. This fungibility characteristic makes cryptocurrencies suitable as a secure medium of transaction in the digital economy But NFTs are non-fungible, which means the value of one NFT is not equal to another. Every art is different from other, making it non fungible, and unique. NFTs shift the crypto paradigm by making each token unique and irreplaceable, thereby making it impossible for one non-fungible token to be equal to another. NFTs are digital representations of assets and have been likened to digital passports because each token contains a unique, non-transferable identity to distinguish it from other tokens. NFTs are also extensible, meaning you can combine one NFT with another to “breed” a third, unique NFT. Who can buy NFTs? Anyone who holds a cryptocurrency wallet can buy an NFT. That is the only prerequisite to purchase an NFT. One doesn’t need any KYC documents to purchase an art. All one needs is a cryptocurrency wallet powered by Metamask, and an NFT marketplace where you can buy and sell NFTs. What types of use cases are non-fungible tokens being utilized for? Smart Contracts – NFTs can also contain smart contracts that may give the artist, for example, a cut of any future sale of the token. It is not just art that is tokenised and sold. NFT event tickets — companies can distribute and sell tickets to events using NFTs, reducing friction for verification of ownership and authenticity and helping to eliminate fraud. Furthermore, there are infinite possibilities for post-purchase collectability of tickets through exclusive experiences and digital art. Fan/customer engagement – brands or organizations can issue or sell NFTs that represent exclusive collectibles, products, experiences, or voting rights for the future development of a product or service in order to deepen the engagement customers / fans have with the brand/organization. In-game items – video games are walled gardens today, players do not own their digital items and secondary markets are hard to implement. NFTs can be used to create a widely varied ecosystem of in game digital items that can be bought sold and exchanged on open secondary markets and used across a broader gaming ecosystem rather than anchored to one game Digital collectibles – organizations or individuals who have a well-defined brand can create NFTs that can be sold on the open market to fans or brand-loyal customers as collectibles. Perhaps the most hyped space is NBA Top Shot, a place to collect non-fungible tokenized NBA moments in digital card form. Some of these cards have sold for millions of dollars. In early March 2021, a group of NFTs by digital artist Beeple sold for over $69 million. Credentialing – identity credentials like driver’s licenses or professional certifications like AWS’ wide range of cloud certificates can be issued as NFTs to reduce the burden of proof for these credentials and eliminate the siloed nature of credentials today Royalties – NFT’s can track fractional ownership or royalty entitlement for a piece of media or content or art. Real Estate – They can also work as a vehicle to digitally represent physical assets like real estate. NFTs can democratize investing by fractionalizing physical assets like real estate. It is much easier to divide a digital real estate asset among multiple owners than a physical one What are the concerns with NFTs? Complexity: The technology and tooling behind non-fungible tokens and the decentralized applications that underpin them are still nascent despite the increasing adoption amongst startups and enterprises alike; Many of the complexities associated with building NFT-related solutions are not yet abstracted by quality tooling. Fake Marketplaces: One security risk for NFTs is that you could lose access to your non-fungible token if the platform hosting the NFT goes out of business.In the recent past, several incidents of NFT scams have been reported including: emergence of fake marketplaces, unverified sellers often impersonating real artists and selling copies of their artworks for half prices. Ecological Impacts: Another risk associated with NFTs that cannot be swept under the rug is the unquestionably negative impact on the environment. In order to validate transactions, crypto mining is done, which requires high powered computers that run at a very high capacity, affecting the environment ultimately. Regulatory/Legal Implications: There are concerns that it can be used for money laundering mechanisms, and illicit funding activities. These being speculative or high-value assets also make people gullible to investment for quick returns. Because of all these, there is distinct regulatory and legal concerns expressed by governments. Rapid Innovation: The rapid pace of innovation in the NFT ecosystem and the blockchain networks on which they are issued presents challenges for those adopting the technology in the form of consistent change; agility and modularity are critical. Mains Practice Question – What are NFTs and what are the concerns associated with it? Note: Write answers to this question in the comment section.  

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 7th July 2022

Archives (PRELIMS & MAINS Focus) RBI relaxed norms to stem rupee slide and to forex inflows Open in new window Syllabus Prelims – Economy In News: To prevent the slide in the rupee and shore up foreign exchange reserves, the RBI announced a series of measures. This includes relaxation in foreign investment in debt, external commercial borrowings, and Non-Resident Indian (NRI) deposits. Stats The rupee depreciated 4.1 per cent to 79.30 against the US dollar in the current financial year. Foreign portfolio investors pulled out 2.32 lakh crore in six months, and $50 billion being shaved off forex reserves over the last nine months. Measures taken RBI has allowed banks temporarily to raise fresh Foreign Currency Non-Resident Bank i.e. FCNR(B) and Non-Resident External (NRE) deposits without reference to the current regulations on interest rates. Currently, interest rates on FCNR(B) deposits are subject to ceilings of overnight Alternative Reference Rate (ARR) for the respective currency/ swap plus 250 basis points for deposits of 1-3 years maturity and overnight ARR plus 350 basis points for deposits of 3-5 years maturity. In the case of NRE deposits, interest rates should not be higher than those offered by the banks on comparable domestic rupee term deposits. Investments by FPIs in government securities and corporate debt made till October 31, 2022, will be exempted from this short-term limit. These will not be reckoned for the short-term limit of one year till maturity or sale of such investments. Currently, not more than 30 per cent of investments each in government securities and corporate bonds can have a residual maturity of less than one year. FPIs will be provided with a limited window till October 31, 2022, during which they can invest in corporate money market instruments like commercial paper and non-convertible debentures with an original maturity of up to one year. FPIs can continue to stay invested in these instruments till their maturity or sale. Also the central bank decided to increase the limit under the automatic route for external commercial borrowing (ECB) from $750 million or its equivalent per financial year to $ 1.5 billion. The all-in cost ceiling under the ECB framework is also being raised by 100 basis points, subject to the borrower being of investment grade rating. Further incremental FCNR(B) and NRE deposits will be exempt from the maintenance of cash reserve ratio and statutory liquidity ratio (SLR). This relaxation, which will add to the returns of NRIs External Commercial Borrowings ECBs is a loan availed by an Indian entity from a nonresident lender with a minimum average maturity. Most of these loans are provided by foreign commercial banks buyers’ credit, suppliers’ credit, securitized instruments such as Floating Rate Notes and Fixed Rate Bonds etc. Advantages of ECBs: ECBs provide opportunity to borrow large volume of funds. The funds are available for relatively long term. Interest rate are also lower compared to domestic funds. ECBs are in the form of foreign currencies. Hence, they enable the corporate to have foreign currency to meet the import of machineries etc. Foreign Currency Non-Resident (Bank) account FCNR(B) accounts can be opened by NRIs and Overseas Corporate Bodies (OCBs) with an authorized dealer. Rate of interest applicable to these accounts are in accordance with the directives issued by RBI from time to time. NRE accounts NRE accounts can be opened by NRIs and OCBs with authorized dealers and with banks authorized by RBI. These can be in the form of savings, current, recurring or fixed deposit accounts. Deposits are allowed in any permitted currency. Rate of interest applicable to these accounts are in accordance with the directives issued by RBI from time to time. Source: Indian Express Sub-categorisation of OBCs Open in new window Syllabus Prelims – Current Affairs In News: The Union Cabinet gave the 13th extension to the Justice Rohini Commission, to submit its report. The commission was set up on October 2, 2017 under Article 340 of the Constitution. It was tasked with sub-categorisation of the Other Backward Classes (OBCs) and equitable distribution of benefits reserved for them. In 2015, the National Commission for Backward Classes (NCBC) had recommended that OBCs should be categorised into extremely backward classes, more backward classes and backward classes. Article 340 The President may by order appoint a Commission consisting of such persons as he thinks fit to investigate the conditions of socially and educationally backward classes within the territory of India. A Commission so appointed shall investigate the matters referred to them and present to the President a report. The President shall cause a copy of the report so presented together with a memorandum explaining the action taken thereon to be laid before each House of Parliament. OBC Reservation The Kalelkar Commission, set up in 1953, was the first to identify backward classes other than the SCs and STs at the national level. The Mandal Commission Report, 1980 estimated the OBC population at 52% and classified 1,257 communities as backward. It recommended increasing the existing quotas, which were only for SC/ST, from 22.5% to 49.5% to include the OBCs. The central government reserved 27% of seats in union civil posts and services for OBCs under Article 16(4). The quotas were subsequently enforced in central government educational institutions under Article 15 (4). In 2008, the Supreme Court directed the central government to exclude the creamy layer (advanced sections) among the OBCs. Source: Indian Express Previous Year Question Q.1) If the President of India exercises his power as provided under Article 356 of the Constitution in respect of a particular State, then (2018) the Assembly of the State is automatically dissolved. the powers of the Legislature of that State shall be exercisable by or under the authority of the Parliament. Article 19 is suspended in that State. the President can make laws relating to that State. Section 69A of IT Act, 2000 Open in new window Syllabus Prelims – Polity and Governance Mains – GS 2(Polity and Governance) Context: As Twitter initiated legal action against some of the government ordering it to take down certain content posted on the microblogging site, the focus is back on Section 69A of IT Act, 2000 Alleging disproportionate use of power by officials, the social media company moved the Karnataka High Court against the Ministry of Electronics & Information Technology’s order content-blocking orders issued under Section 69 (A) of the Information Technology Act, 2000. IT Ministry had written to Twitter, asking it to comply with its orders by July 4 or lose its safe harbour protection under the intermediary rules. Information Technology Act, 2000 The Information Technology (IT) Act, 2000, governs all activities related to the use of computer resources. It covers all ‘intermediaries’ who play a role in the use of computer resources and electronic records. Section 69 of the IT Act: It confers on the Central and State governments the power to issue directions to intercept, monitor or decrypt any information generated, transmitted, received or stored in any computer resource. The grounds on which these powers may be exercised are: In the interest of the sovereignty or integrity of India, defence of India, the security of the state. Friendly relations with foreign states. Public order, or for preventing incitement to the commission of any cognizable offence relating to these. For investigating any offence. Process of Blocking Internet Websites: Section 69A, for similar reasons and grounds (as stated above), enables the Centre to ask any agency of the government, or any intermediary, to block access to the public of any information generated, transmitted, received or stored or hosted on any computer resource. Any such request for blocking access must be based on reasons given in writing. Intermediaries as per the IT Act 2000: Intermediary is defined in Section 2(1) (w) of the IT Act 2000. The term ‘intermediaries’ includes providers of telecom service, network service, Internet service and web hosting, besides search engines, online payment and auction sites, online marketplaces and cyber cafes. It includes any person who, on behalf of another, “receives, stores or transmits” any electronic record. Social media platforms would fall under this definition. Obligations of Intermediaries under the Law: Intermediaries are required to preserve and retain specified information in a manner and format prescribed by the Centre for a specified duration. Contravention of this provision may attract a prison term that may go up to three years, besides a fine. When a direction is given for monitoring, the intermediary and any person in charge of a computer resource should extend technical assistance in the form of giving access or securing access to the resource involved. Failure to extend such assistance may entail a prison term of up to seven years, besides a fine. Failure to comply with a direction to block access to the public on a government’s written request also attracts a prison term of up to seven years, besides a fine. Liability of Intermediaries: Section 79 of the IT Act 2000 makes it clear that “an intermediary shall not be liable for any third-party information, data, or communication link made available or hosted by him”. Third party information means any information dealt with by a network service provider in his capacity as an intermediary. This protects intermediaries such as Internet and data service providers and those hosting websites from being made liable for content that users may post or generate. Sections 79 also introduced the concept of “notice and take down” provision. It provides that an intermediary would lose its immunity if upon receiving actual knowledge or on being notified that any information, data or communication link residing in or connected to a computer resource controlled by it is being used to commit an unlawful act and it fails to expeditiously remove or disable access to that material. Why has Twitter filed the lawsuit? It is learnt that in its filing, Twitter has claimed that many of the blocking orders are procedurally and substantively deficient under Section 69 (A) of the Act. This includes aspects such as not giving prior notice to users before taking down content posted by them. The company alleged that MeitY has failed to demonstrate how some of the content it wants taken down falls under the purview of Section 69 (A). The company has claimed that the basis on which multiple accounts and posts have been flagged by the Ministry are either “overbroad and arbitrary” or “disproportionate” Source: Indian Express India-Australia Critical Minerals Investment Partnership Open in new window Syllabus Prelims – Geography Current Affairs Mains – GS 2 (International Relations); GS 3 (Economy) In News: India and Australia decided to strengthen their partnership in the field of projects and supply chains for critical minerals. Australia confirmed that it would commit a $5.8 million to the three-year India-Australia Critical Minerals Investment Partnership. What are critical minerals? Critical minerals are elements that are the building blocks of essential modern-day technologies, and are at risk of supply chain disruptions. These minerals are used everywhere from making mobile phones, computers to batteries, electric vehicles and green technologies like solar panels and wind turbines. It mostly include graphite, lithium and cobalt, which are used for making EV batteries; rare earths that are used for making magnets and silicon which is a key mineral for making computer chips and solar panels. Why is this resource critical? As countries around the world scale up their transition towards clean energy and digital economy, these critical resources are key to the ecosystem that fuels this change. Any supply shock can severely imperil the economy and strategic autonomy of a country over-dependent on others to procure critical minerals. But these supply risks exist due to rare availability, growing demand and complex processing value chain. Many times the complex supply chain can be disrupted by hostile regimes, or due to politically unstable regions. What is the China ‘threat’? According to the 2019 USGS Mineral Commodity Summaries report, China is the world’s largest producer of 16 critical minerals. China, according to a report by the International Energy Agency, is responsible for some 70% and 60% of global production of cobalt and rare earth elements, respectively, in 2019. The level of concentration is even higher for processing operations, China’s share of refining is around 35% for nickel, 50-70% for lithium and cobalt, and nearly 90% for rare earth elements. It also controls cobalt mines in the Democratic Republic of Congo, from where 70% of this mineral is sourced. In 2010, China suspended rare earth exports to Japan for two months over a territorial dispute. The decision made the market prices of RREs jump anywhere between 60% to 350%. What are countries around the world doing about it? USA After reviewing the vulnerabilities in its critical minerals supply chains and found that an over-reliance on foreign sources US has shifted its focus on expanding domestic mining, production, processing, and recycling of critical minerals and materials. India India has set up KABIL or the Khanij Bidesh India Limited, a joint venture of three public sector companies, to ensure a consistent supply of critical and strategic minerals to the Indian domestic market. Australia’s Critical Minerals Facilitation Office (CMFO) and KABIL had recently signed an MoU aimed at ensuring reliable supply of critical minerals to India. United Kingdom The UK recently unveiled its new Critical Minerals Intelligence Centre to study the future demand for and supply of these minerals. Other Countries In June last year, the US, Canada and Australia had launched an interactive map of critical mineral deposits with an aim to help governments to identify options to diversify their critical minerals sources. Source: Indian Express Previous Year Question Q.1) Recently, India signed a deal known as ‘Action Plan for Prioritization and Implementation of Cooperation Areas in the Nuclear Field’ with which of the following countries? (2019) Japan Russia The United Kingdom The United States of America Guidelines on Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’ Open in new  window Syllabus Prelims – Current Affairs Mains – GS 2 (Governance) In News: Central Consumer Protection authority (CCPA) under the Department of Consumer Affairs has notified ‘Guidelines for Prevention of Misleading Advertisements and Endorsements for Misleading Advertisements, 2022’. What are the guidelines? Objective To curb misleading advertisements and protect the consumers, who may be exploited or affected by such advertisements. Key Provisions A ‘valid’ advertisement: The guidelines lay down the conditions for non-misleading and valid advertisements. An advertisement can be considered non-misleading if it contains true and honest representation of goods and does not exaggerate the accuracy, scientific validity or practical usefulness or capability. In case of unintentional lapse, the advertisement may still be considered as valid if the advertiser has taken prompt action in letting the consumer know the deficiency. Advertisements targeting children Advertisements that condone, encourage, inspire or unreasonably emulate behaviour that could be dangerous for children or take advantage of children’s inexperience, credulity or sense of loyalty etc. have been prohibited. The guidelines further require that the goods which require a health warning should not be advertised through children as well as personalities from music, sports and cinema. Advertisements that state any health or nutritional claims or benefits without being adequately and scientifically substantiated or any surgery which may have adverse effects on the physical and mental health of children are prohibited. The guidelines also require that advertisements including chips, carbonated beverages and such other snacks and drinks shall not be cast on channels exclusively meant for children. Prohibits Surrogate Advertising: It bans surrogate advertising, a practice where a seller promotes a product whose advertisement is not allowed by disguising it as another product. Liquor ads commonly indulge in such practices — under the guise of selling soda, CDs, and even holiday packages. Free claims advertisements: A free claims advertisement shall not describe any goods, products, or service to be ‘free’, ‘without charge’, or use such other terms if the consumer has to pay anything. Bait Advertisements: The guidelines lay down conditions to be complied with while issuing bait advertisements. Bait advertisement means an advertisement in which goods, products, or service is offered for sale at a low price to attract consumers. Other reforms The guidelines have also introduced the need to have “disclaimers in advertisements” to “clarify a claim made in such advertisement or make qualifications or resolve ambiguities therein in order to explain such claim in further detail.” Moreover, the advertiser must not attempt to hide material information with respect to any claim made in such advertisement, the omission or absence of which is likely to make the advertisement deceptive or conceal its commercial intent. Significance The guidelines are pathbreaking because they fill significant consumer protection gaps while explicitly outlining advertiser duties. It also tries to discourage the promotion of illogical consumerism aimed at children. It performs an essential function in bringing the Indian regulatory framework at par with international norms and standards. The guidelines are momentous in empowering customers against mischievous advertisers. While the guidelines must be hailed as a step in the right direction, there is a definite need to ensure their implementation in the spirit they have been drafted with. Source: Pib.gov The Hindu Freebies Open in new  window Syllabus Mains – GS 2 (Governance) Context: The judgment by a two-judge Bench of the Supreme Court of India in M/s Apex Laboratories Pvt. Ltd. Vs. Deputy Commissioner of Income Tax, Large Tax Payer Unit-II, on February 22, 2022 has struck a blow for public good. The SC bench dismissed the Special Leave Petition by Apex Laboratories to claim deduction on freebies given to doctors. Upholding a decision by the Madras High Court, the Bench said that the act of pharmaceutical companies giving freebies to doctors is clearly ‘prohibited by the law’. Further, it cannot be claimed as a deduction under Section 37(1) of the Income Tax Act, 1961. The judgment will go a long way in checking unethical and illegal practices in the pharma sector which has become so out of reach for the common man. A case of misuse Pharmaceutical companies have misused a legislative gap to actively perpetuate the commission of an offence of giving freebies to doctors to promote their brands, even though this was prohibited in the law framed by the Medical Council of India (MCI). In the said case, the company was giving out freebies to doctors in order for them to create awareness about a health supplement it was manufacturing called Zincovit. Thus court upheld that pharmaceutical companies’ gifting freebies to doctors, etc. is clearly ‘prohibited by law’ and not allowed to be claimed as a deduction under Section 37(1). A doctor’s prescription is considered as the final word on medication by the patient even if the cost of such medication is unaffordable. The Court was conscious that the cost of such freebies is factored in the cost of medicines sold, in turn driving up their prices and perpetuating a publicly injurious cycle. The issue of retail price There is where a case of secret dealing that happens in the pharma world happens because drugs are invariably sold in pharmacist shops at MRP only. This is what affects medical treatment. Even though the Drug Price Control Order and Drugs and Cosmetics Act are there on the statute book, there is hardly any action to keep the sale price of medicines under control with due and proper investigation into their so-called research and development costs and keeping their profit margins within a prescribed limit. There is an urgent need to check looting that is driven by drug manufacturers to distribute their products using freebies or ‘bribes’. Way forward This judgment can go far. It should be debated and applied to other unethical practices and expenditure out of public funds. The strategy here should be to use financial tools such as income-tax provisions for disallowing such expenditure and taxing the same as perquisites or taxable income in the hands of recipients viz. assurances and declarations in election campaigns by political parties by giving away free laptops, waived electricity charges, food grains, loan waivers, etc. Source: The Hindu Hate Speech Open in new  window Syllabus: Mains – GS 1 (Social Issues) Context: The recent incidents of communal violence has brought the focus on the Hate Speech Recent occurrences The incident in Amravati, Maharashtra, where a chemist, Umesh Kolhe, was knifed to death allegedly by three men in retaliation for his sharing a post in support of former ruling party spokesperson on the Prophet was on the same lines as the dastardly murder of a tailor, Kanhaiya Lal, in Udaipur a week ago. In both cases, suspects who were incensed by the remarks took to violence as a counter to what they perceived as an insult to their religion. Major Reasons of Hate Speech: Feeling of Superiority: Individuals believe in stereotypes that are ingrained in their minds and these stereotypes lead them to believe that a class or group of persons are inferior to them and as such cannot have the same rights as them. Stubbornness to Particular Ideology: The stubbornness to stick to a particular ideology without caring for the right to co-exist peacefully adds further fuel to the fire of hate speech. Legal Position of Hate Speech: Under Indian Penal Code: Sections 153A and 153B of the IPC: Punishes acts that cause enmity and hatred between two groups. Section 295A of the IPC: Deals with punishing acts which deliberately or with malicious intention outrage the religious feelings of a class of persons. Sections 505(1) and 505(2): Make the publication and circulation of content which may cause ill-will or hatred between different groups an offence. Under Representation of People’s Act: Section 8 of the Representation of People’s Act, 1951 (RPA): Prevents a person convicted of the illegal use of the freedom of speech from contesting an election. Sections 123(3A) and 125 of the RPA: Bars the promotion of animosity on the grounds of race, religion, community, caste, or language in reference to elections and include it under corrupt electoral practices. Recommendations for changes in IPC Bezbaruah Committee 2014: It proposed amendment to Section 153 C of IPC punishable by five years and fine or both and Section 509A IPC punishable by three years or fine or both. Viswanathan Committee 2019: It proposed inserting Sections 153 C (b) and Section 505 A in the IPC for incitement to commit an offence on grounds of religion, race, caste or community, sex, gender identity, sexual orientation, place of birth, residence, language, disability or tribe. It proposed punishment of up to two years along with Rs. 5,000 fine. Way forward The most efficient way to dilute hatred is by means of Education. So our education system should play major role in promoting and understanding compassion with others. People should have a vision to unite all sections of society socially and culturally, and take the country forward. For India, the whole world is one family as encapsulated in its timeless ideal, ‘Vasudhaiva Kutumbakam’. It is with this spirit that we should move forward together. The government should also bring comprehensive amendments to criminal laws to prevent hate speech and expression. Source: The Hindu Baba’s Explainer –  CCPA: Advertisement Rules & Service Charge CCPA: Advertisement Rules & Service Charge Syllabus GS-3: Economy and associated challenges GS-2: Government policies and interventions for development in various sectors Context: The Central Consumer Protection Authority (CCPA) recently issued guidelines to prevent false or misleading advertisements. The guidelines are pathbreaking because they fill significant consumer protection gaps while explicitly outlining advertiser duties. Read Complete Details on CCPA: Advertisement Rules & Service Charge Daily Practice MCQs Daily Practice MCQs Q.1) Consider the following statements Under Article 350 of the constitution President may appoint a commission to investigate the conditions of socially and educationally backward classes within the territory of India. Government of India has appointed Justice Rohini Commission to look into sub-categorisation of the Other Backward Classes and equitable distribution of benefits reserved for them. Choose the incorrect statements: 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.2) Recently India signed Critical Minerals Investment Partnership with which of the following country? South Africa Australia Kenya Canada Q.3) Consider the following statements about State Ranking Index for National Food Security Act (NFSA) The index was released by Ministry of Agriculture and Farmers Welfare 2022 edition is the first edition of the index and is built on 5 key pillars Odisha scored the highest and secured the top position in the index Choose the correct statements: 1 and 2 2 and 3 1, 2 and 3 1 and 3 Comment the answers to the above questions in the comment section below!! ANSWERS FOR ’7th JULY 2022 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs. ANSWERS FOR 6th JULY 2022 – Daily Practice MCQs Answers- Daily Practice MCQs Q.1) – d Q.2) – b Q.3) – a

Important Articles

[CURRENT AFFAIRS] IAS UPSC REVAMPED Current Affairs Magazine MAY 2022

Archives Hello Friends,This is MAY 2022 of IASbaba’s REVAMPED Current Affairs Monthly Magazine. Current Affairs for UPSC Civil Services Examination is an important factor in this preparation.An effort towards making your Current Affairs for IAS UPSC Preparation qualitative. We hope you make the best use of it!This edition covers all Important current affairs issues that were in news for the month of MAY 2022.Kindly leave your feedback in the comment section below on the new design and presentation of the magazine. We would love to hear from youDownload The Magazine - MAY 2022 Important Topics Covered In The Magazine Includes: Gyanvapi Mosque Controversy Monkey Pox Indo-Pacific Economic Framework for Prosperity Agriculture Exports Surrogacy Regulation Act, 2021 And Much More.... Download The Magazine - MAY 2022 To get Regular Updates from IASbaba, follow-TELEGRAM Channel – https://t.me/IASbabaOfficialAccountYOUTUBE – https://www.youtube.com/channel/UChvbVdio9Wgj7Z3nQz1Q0ZQFACEBOOK – https://www.facebook.com/iasbaba/Thank YouIASbaba

Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 7th July 2022

Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test -Click Here

IASbaba’s TLP (Phase 2): UPSC Mains Answer Writing – General Studies 3 Questions [7th July, 2022] – Day 16

Hello Students  TLP has been an integral ingredient of success for many toppers and is no secret. In the ‘must do’ list for the civil services exam, TLP is by far the most popular initiative. The popularity stems from the unparalleled quality of questions and synopsis posted in TLP. We strive hard to ensure that you get the real feel of UPSC standards before you write the Mains. You already know the features of TLP. Just to reiterate briefly, in the TLP initiative, we post 5 questions daily for a certain number of weeks (11 for this one). We follow a micro plan that is designed to give you daily targets. The questions are from the day’s syllabus and also from current affairs and you are expected to write the answers and post them on the portal. This year onwards TLP will have a Dedicated Portal for Focused Preparation (tlpmains.iasbaba.com). There will be a separate dedicated portal similar to (The RaRe Series) which students loved and appreciated. The Portal will help you stay focused and keep your preparation streamlined. The Registration link for the dedicated portal is given at the end of the post. We are charging a token amount of 10/- for registration to the dedicated portal. We are doing it because we want to create a community of sincere aspirants who are focused and motivated till the Mains Examination. Please don’t take it otherwise. It is our honest effort to give you the best and at the same time expect students to come with the same energy and dedication to the dedicated platform specially designed for YOU! Join our bandwagon, you won’t regret it. UPSC 2023 Aspirants are encouraged to participate as well. Register Here - CLICK HERE  To Know More About TLP 2022 (Phase 2) - CLICK HERE To Access Day 16 Questions - CLICK HERE  P.S: The review from IASbaba will happen from the time the question is posted till 10 pm every day. We would also encourage peer reviews. So friends get actively involved and start reviewing each other’s answers. This will keep the entire community motivated. All the Best 

Baba’s Explainer

Baba's Explainer - CCPA: Advertisement Rules & Service Charge

ARCHIVES Syllabus GS-3: Economy and associated challenges GS-2: Government policies and interventions for development in various sectors Context: The Central Consumer Protection Authority (CCPA) recently issued guidelines to prevent false or misleading advertisements. The guidelines are pathbreaking because they fill significant consumer protection gaps while explicitly outlining advertiser duties. What is CCPA? The Central Consumer Protection Authority (CCPA) is being constituted under Section 10(1) of The Consumer Protection Act, 2019. The Act replaced The Consumer Protection Act, 1986, and seeks to widen its scope in addressing consumer concerns. The objective of the Central Consumer Protection Authority (CCPA) is to promote, protect and enforce the rights of consumers as a class. Powers of CCPA include Conduct investigations into violation of consumer rights and institute complaints / prosecution Order recall of unsafe goods and services Order discontinuation of unfair trade practices and misleading advertisements, Impose penalties on manufacturers/endorsers/publishers of misleading advertisements. What are the provisions under the freshly issued guidelines of the CCPA? The guidelines fill significant consumer protection gaps while explicitly outlining advertiser duties. The guidelines try to discourage the promotion of illogical consumerism aimed at children. Defining a ‘valid’ advertisement The guidelines lay down the conditions for non-misleading and valid advertisements. Briefly, an advertisement can be considered non-misleading if it contains true and honest representation of goods and does not exaggerate the accuracy, scientific validity or practical usefulness or capability. In case of unintentional lapse, the advertisement may still be considered as valid if the advertiser has taken prompt action in letting the consumer know the deficiency. Surrogate advertisements “Surrogate advertisement” refers to the advertisement of goods in the shadow of other goods. For example, the advertisement of tobacco in the garb of pan masala. Advertisement of tobacco as such is prohibited by the law. While existing laws such as the Cigarettes and other Tobacco Products Act, 2003 already seeks to govern advertisements related to tobacco, manufacturers and advertisers have been able to circumvent the regulation through the grey area created by a surrogate advertisement. The new guidelines completely disallows any attempts to advertise products that are otherwise prohibited by law. Advertisements targeting children Another important issue taken up by the new guidelines is the discouragement of “children targeted advertisements”. Advertisements that condone, encourage, inspire or unreasonably emulate behaviour that could be dangerous for children or take advantage of children’s inexperience have been prohibited. The guidelines further require that the goods which require a health warning should not be advertised through children as well as personalities from music, sports and cinema. Advertisements that state “any health or nutritional claims or benefits without being adequately and scientifically substantiated” or any surgery which may have adverse effects on the physical and mental health of children are prohibited. Furthermore, an advertisement may be considered as children targeted if the advertisement of any goods, product or service which addresses or targets children may develop negative body image in children or give any impression that such goods, product or service is better than natural or traditional food. For example, advertisements relating to milk additive products often imply that the products have higher nutritional value for the growth of children, increase retention power of the brain during exams, strengthen bones in sports etc., even though these claims are yet to be scientifically proven. Additionally, the guidelines also require that advertisements including “chips, carbonated beverages and such other snacks and drinks” shall not be cast on channels exclusively meant for children. Other Reforms The guidelines have also introduced the need to have disclaimers in advertisements to clarify any claim made in advertisements. Moreover, the advertiser must not “attempt to hide material information with respect to any claim made in such advertisement, the omission or absence of which is likely to make it deceptive. The guidelines require that the disclaimer must be visible to normally sighted persons and prominently placed so that the consumer may read it carefully. The guidelines also impose duties on the manufacturers, service providers and advertising agency to not claim and make comparisons in an advertisement which relate to matters of objectively ascertainable facts. Penalties for misleading advertisement include The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement.  In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years. What are the significance of the new advertisement guidelines? Long festering issues being addressed: The problem of misleading, bait, surrogate and children-targeted advertisement has festered without respite for far too long. The guidelines try to address these issues. Aligned with International standards: The guidelines also performs an essential function in bringing the Indian regulatory framework at par with international norms and standards. Definition reduces the scope of Exploitation: It must be noted that rather than defining what constitutes a ‘misleading or invalid advertisement,’ the guidelines have sought to define ‘valid or non-misleading advertisement.’ This take on policy drafting significantly reduces the scope for exploitation of any inadvertent loopholes. Plug loopholes in the law: The guidelines on surrogate advertising seek to ensure that these grey areas are filled by the black letter of the law, completely disallowing any attempts to advertise products through surrogate advertisements. Upholding Child Interests: A marketing strategy that seeks to aggressively play on the immaturity of the younger audience can invariably impinge upon their ‘right to choose’ as well as their right to be informed and protected against unsafe goods and services as well as unfair trade practices. New guidelines helps protects children from unwarranted advertisements. Setting right the intention of Advertisements: The new guidelines show that the advertisement must be framed to gain the trust of the consumers and not to “abuse the trust of consumers or exploit their lack of experience or knowledge”. What are the concerns raised with new guidelines on advertisement? Implementation is the key to success: The enforcement issues in existing advertisement laws have been addressed by the guidelines in as much as it imposes severe penalties. Nevertheless, implementation of them is required to achieve the objectives outlined in the new guidelines. Regulatory Overburden: Given the huge amount of advertisement that occur at National, state and local level, it becomes challenging for the regulatory authorities to enforce the guidelines even if it has the intention of doing it. The sheer size of the economy can overburden the already thinly staffed CCPA. Difficult to define what’s misleading. A lot of things are in the grey area in advertising. For example, some products may claim they make your child stronger, or taller, or provide vitamin C, but how do you prove that. A lot of things are intangibles in advertising.  So, it’s very difficult for a celebrity to verify claims because sometimes even the clients can’t verify those claims Possibility of Judicial Review: Guidelines on children advertisement bans certain ads on channels exclusively meant for children. This can be challenged under Article 14 and Article 19(1)(g) of the Indian Constitution as it impinges upon the right of the channels such as Cartoon Network to earn revenue from such advertisements. Need Cooperation of Advertisers: The guidelines are momentous in empowering customers against mischievous advertisers. The advertisers, too, must take a cue from the guidelines and impose self-regulation to comply with the same. What are the new CCPA guidelines on brand endorsers? Government has tightened norms for endorsers, including celebrities and sportspersons, as they are now required to make material connection disclosures and undertake due diligence while endorsing in advertisements. Endorsements must reflect the honest opinions, belief or experience of the endorsers. If there exists a connection between the endorser and the trader, manufacturer or advertiser of the endorsed product, then such a connection must be fully disclosed. Violation of these guidelines will attract a penalty of ₹10 lakh for the first offence and ₹50 lakh for the subsequent offence, under the CPA. CCPA can also prohibit the endorser of a misleading advertisement from endorsing that particular product or service for a period of up to one year. What are the reasons for hiring brand ambassadors? In India, people are generally worshippers of celebrities be it actors or cricketers. Therefore, lot of brands these days have either actors or cricketers as brand endorsers. It adds to the credibility of the brand. It’s the trust which people repose in some of the celebrities that they pass on to the image of the brand. Having such brand endorsers impacts the buyers’ purchasing decisions because of the celebrity’s authority and/or relationship with the audience. In mature categories, which have high penetration, established brands that have little to differentiate among them and have almost reached a parity stage, celebrities are used as identifiers. Sometimes it is also lazy marketing to hire a celebrity to sell the product. In March 2022, celebrity endorsements saw a 44% rise in 2021 over 2020. What are the implications of the recent guidelines on brand ambassadors? Endorsers are service providers. They do have responsibilities given the kind of impact they have on the audience. But it’s not solely on them. They wouldn’t have the technical knowledge to verify the products. Even though the ASCI self-regulation guidelines provide something similar in terms of the due diligence exercise to be carried out by the celebrities, the new guidelines make due diligence by endorser a statutory obligation for them. Code for Self-Regulation in Advertising’ was adopted by the Advertising Standards Council of India (ASCI) New guidelines point out that they can’t endorse the product merely for monetary gains without any responsibility towards their endorsements The guidelines require the celebrities to reflect their genuine or current opinion, to disclose any connection which they have with the brand This will increase instances where brand endorsers may need to take some technical advice, to verify whether the endorsements are substantiated or not Penalty in the form of prohibiting the endorser for a year will lead to loss of reputation of the celebrity which deters them from blindly endorsing the product. With these guidelines there will be an increase in transparency and more responsible advertising. Concerns raised are: Penalty is too low for violation of the guidelines. So, a ₹10 lakh penalty is nothing if they had a deal of ₹4 crores. Hence, there are arguments that penalty should have been much more. Also, celebrities are nowadays ensuring that there are clauses of no responsibility inserted into the contract that they sign with the brand. What was the recent guidelines by CCPA on service charges? Issue: A number of complaints have been registered in the National Consumer Helpline (NCH) by consumers with regard to levying of service charge. The issues raised by consumers include restaurants making service charge compulsory and adding it in the bill by default, suppressing that paying such charge is optional and voluntary and embarrassing consumers in case they resist paying service charge. Various cases relating to levying of service charge have also been decided by consumer commissions in favor of consumers, holding the same as an unfair trade practice and in violation of consumer rights. The Central Consumer Protection Authority (CCPA) has issued guidelines for preventing unfair trade practices and violation of consumer rights with regard to levying of service charge in hotels and restaurants. The guidelines issued by CCPA stipulate that hotels or restaurant shall not add service charge automatically or by default in the food bill. No collection of service charge shall be done by any other name. No hotel or restaurant shall force a consumer to pay service charge and shall clearly inform the consumer that service charge is voluntary, optional and at consumer’s discretion. No restriction on entry or provision of services based on collection of service charge shall be imposed on consumers. Service charge shall not be collected by adding it along with the food bill and levying GST on the total amount. If any consumer finds that a hotel or restaurant is levying service charge in violation to the guidelines, a consumer may make a request to the concerned hotel or restaurant to remove service charge from the bill amount. Also, the consumer may lodge a complaint on the National Consumer Helpline (NCH), which works as an alternate dispute redressal mechanism at the pre-litigation level by calling 1915 or through the NCH mobile app. The consumer may also file a complaint against unfair trade practice with the Consumer Commission. The Complaint can also be filed electronically through e-daakhil portal e-daakhil.nic.in for its speedy and effective redressal. Furthermore, the consumer may submit a complaint to the District Collector of the concerned district for investigation and subsequent proceeding by the CCPA. The complaint may also be sent to the CCPA by e-mail at com-ccpa@nic.in. Mains Practice Question –Why is there an increase in celebrity endorsement in recent times? What are the challenges with regulating celebrity endorsements? Note: Write answers to this question in the comment section.  

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 6th July 2022

Archives (PRELIMS & MAINS Focus) Environment Protection Act (EPA) Open in new window Syllabus Prelims – Environment Mains – GS 3 (Environment) In News: The Environment Ministry proposes to soften the provisions of punishment for the violations of Environment Protection Act (EPA) It proposes to replace a clause that provides for imprisoning violators with one that only requires them to pay a fine. This does not apply to violations that cause grave injury or loss of life. The proposed fines, in lieu of imprisonment, are also 5-500 times greater than those currently levied. Existing Provisions The Act currently says that violators will be punishable with imprisonment up to five years or with a fine up to ₹1 lakh, or with both. Were violations to continue, an additional fine of up to ₹5,000 for every day during which such failure or contravention continues after the conviction would be levied. There’s also a provision for jail terms to extend to seven years. The two major changes proposed are Appointing an “adjudication officer” who would decide on a penalty in cases of environmental violations In case of serious violations which lead to grievous injury or loss of life, they shall be covered under the provision of Indian Penal Code, 1860. The amendments also propose the creation of an “Environmental Protection Fund’’ in which the amount of penalty will be remitted Reasons for proposed amendments An analysis by the Centre for Science and Environment found that Indian courts took between 9-33 years to clear a backlog of cases for environmental violations. Beginning 2018, close to 45,000 cases were pending trial and another 35,000 cases were added in that year. Ministry stated that the rationale governing the amendments is that it had received suggestions to decriminalise existing provisions of the EPA to weed out fear of imprisonment for simple violations. The Environment (Protection) Act (EPA) EPA was enacted in 1986 with the objective of providing the protection and improvement of the environment. The Central government is also empowered to: Plan and execute a nation-wide programme for the prevention, control and abatement of environmental pollution. Lay down standards for the quality of environment in its various aspects. Lay down standards for emission or discharge of environmental pollutants from various sources. The restriction of areas in which any industries, operations or processes or class of industries, operations or processes shall/ shall not be carried out subject to certain safeguards. The Central Government may appoint officers under this Act for various purposes and entrust them with the corresponding powers and functions. The central government as per the Act has the power to direct: The closure, prohibition or regulation of any industry, operation or process The stoppage or regulation of the supply of electricity or water or any other service Restriction on Pollutant Discharge: No individual or organisation shall discharge/emit or permit to discharge/emit any environmental pollutant in excess of the prescribed standards. Compliance with Procedural Safeguards: No individual shall handle or shall be caused to handle any hazardous substance except in accordance with the procedure and without complying with the safeguards, as prescribed. Powers of Entry and Inspection: Any person empowered by the Central Government shall have a right to enter (with the assistance deemed necessary) at any place: Establishment of Environmental Laboratories: The Central Government, as per the Act, is entitled to recognize any laboratory or institute as environmental laboratories to carry out the functions entrusted to such a laboratory. Penalties for Offences: Non-compliance or Contravention to any of the provisions of the Act is considered as an offence. Any offences under the EPA are punishable with the imprisonment of upto five years or a fine upto one lakh rupees or both. Cognizance of offences: No Court shall take cognizance of any offence under this Act except on a complaint made by: The Central Government or any authority on behalf of the former Source: The Hindu Indian Express Previous Year Question Q.1) Which one of the following has been constituted under the Environment (Protection) Act, 1986? (2022) Central Water Commission Central Ground Water Board Central Ground Water Authority National Water Development Agency State Ranking Index for NFSA Open in new window Syllabus Prelims – Current Affairs In News: Minister of Consumer Affairs, Food & Public Distribution released the 1st edition of ‘State Ranking Index for NFSA’ during the conference of Food Ministers of States/UTs on ‘Food Nutrition and Security in India’ The State ranking Index for NFSA attempts to document the status and progress of implementation of NFSA and various reform initiatives across the country, post consultation with states. It highlights the reforms undertaken by States and UTs and create a cross-learning environment and scale-up reform measures by all states and union territories. The Index is built on three key pillars which covers the end-to-end implementation of NFSA through TPDS. These pillars are: NFSA— Coverage, targeting and provisions of the Act, Delivery platform, and Nutrition initiatives. Odisha topped the index, it is followed by Uttar Pradesh at the 2nd spot and Andhra Pradesh at 3rd amongst the General Category States. Among the Special Category states/UTs, Tripura stood first followed by Himachal Pradesh and Sikkim respectively. Among the 3 UTs where Direct Benefit Transfer (DBT) – Cash is operational, Dadra and Nagar Haveli & Daman and Diu is the top ranked UT. Sowing of Rice In the conference the Centre has asked the States to increase the sowing of paddy in the wake of reports that there is a decrease in its sowing. The Union Minister of Food and Public Distribution said the international demand for both rice and wheat has increased and asked the States to increase the sowing of paddy in this kharif season. The Centre’s data says that paddy has been sown on 43.45 lakh hectares till July 1, which is 05% less than last year’s sowing of 59.56 lakh hectares during the same period of 2021. Minister also stated the States should increase the sowing as wheat’s demand has increased globally. Source: Pib.Gov Downtoearth.org Appointment of Judges Open in new window Syllabus Prelims – Polity Mains – GS 2 (Polity & Governance – Judiciary) In News: Pointing out that the problem of pendency of cases is “intensifying” due to lack of sufficient number of judges, Chief Justice of India again points out the delay in appointment of judges Pendency of cases in India Reasons for this include growth of the Indian economy, population, rising awareness about rights etc. In the absence of infrastructure and sufficient number of judges commensurate with the increasing workload, the problem is intensifying. Thus there is a need for transforming and upgrading the judicial infrastructure in India, as well as filling up judicial vacancies and augmenting the strength. Appointment of HC Judges: Article 217 of the Constitution: It states that the Judge of a High Court shall be appointed by the President in consultation with the Chief Justice of India (CJI), the Governor of the State. In the case of appointment of a Judge other than the Chief Justice, the Chief Justice of the High Court is consulted. Consultation Process: High Court judges are recommended by a Collegium The proposal, however, is initiated by the Chief Justice of the High Court concerned in consultation with two senior-most colleagues. The recommendation is sent to the Chief Minister, who advises the Governor to send the proposal to the Union Law Minister. The Chief Justice of the High Court is appointed as per the policy of having Chief Justices from outside the respective States. The Collegium takes the call on the elevation. Source: Indian Express Previous Year Question Q.1) Consider the following statements: (2019) The motion to impeach a Judge of the Supreme Court of India cannot be rejected by the Speaker of the Lok Sabha as per the Judges (Inquiry) Act 1968. The Constitution of India defines and gives details or what constitutes ‘incapacity and proved misbehaviour’ of the Judges of the Supreme Court of India. The details of the process of impeachment of the Judges of the Supreme Court of India are given in 4 the Judges (Inquiry) Act, 1968. If the motion for the impeachment of a Judge is taken up for voting, the law requires the motion to be backed by each House of the Parliament and supported by a majority of total membership of that House and by not less than two-thirds of total members of that House present and voting. Which of the statements given above is/are correct? 1 and 2 3 only 3 and 4 only 1, 3 and 4 Banni grasslands Open in new window Syllabus Prelims – Environment Mains – GS 3 (Environment) In News: Gujarat plans on restoring at least 76,000 hectares of this 2,497 sq km grassland which is a high-biodiversity area. Banni grasslands of Gujarat The grasslands of Gujarat constitute about 4.33 per cent (8,490 sq km) of the total geographical area, distributed in eight districts and three different climatic regions — Kutch, Saurashtra and central Gujarat. A majority of grasslands in Gujarat (41 per cent) are found in the Kutch district. Banni grassland was declared a Protected Forest in 1955, under the Indian Forest Act, 1927. Besides having 40 species of grass and 99 species of flowering plants, Banni is also home to the Indian wolf, jackal, Indian fox, desert fox, desert cat, caracal, hyena, chinkara, Nilgai, wild boar, Indian hare and common monitor lizard Banni also has 273 bird species and in years of good rainfall, is home to thousands of migratory birds. Threats The landscape of Banni has shown drastic changes with the deterioration of the grassland taking place due to heavy uncontrolled grazing, widespread ingress of Prosopis Juliflora (a harmful exotic tree species), dams constructed on rivers flowing towards Banni, periodic occurrence of droughts and continuous increase in soil salinity. Invasion of alien species It was found that in the year 1989, the area was dominated with grasslands covering 54.57% of the area followed by saline areas devoid of vegetation covering 27.30 per cent and Prosopis Juliflora, an alien invasive species, covering only 15.72 per cent of the area. Today Prosopis Juliflora dominant area has increased encroached to more than 30 per cent. Restoration project The mainstay of the restoration project is the removal of this alien species, which incidentally was introduced to the area by the forest department in the 1960s to stop the ingress of the salt flats. With a huge 20-lakh livestock population that depends on the grassland, the second part of the project envisions the production and storing of fodder for local farming and pastoral communities that live here. Source: Indian Express Nairobi flies Open in new  window Syllabus Prelims – Environment In News: Around 100 students in Sikkim have reported skin infections after coming in contact with Nairobi flies. The population of Nairobi flies, a species of insect native to East Africa, is growing at a fast pace in Sikkim. What are Nairobi flies? Nairobi flies, also called Kenyan flies or dragon bugs, are small, beetle-like insects that belong to two species, Paederus eximius and Paederus sabaeus. They are orange and black in colour, and thrive in areas with high rainfall, as has been witnessed in Sikkim in the past few weeks. Like most insects, the beetles are attracted by bright light. How are humans affected by them? Usually, the insects attack pests that consume crops and are beneficial for humans — but at times, they come in contact with humans directly are cause harm. These flies do not bite, but if disturbed while sitting on anyone’s skin, they release a potent acidic substance that causes burns. This substance is called pederin, and can cause irritation if it comes in contact with the skin, leading to lesions or unusual marks or colouring on the skin. The skin begins to heal in a week or two, but some secondary infections can occur, especially if the victim scratches the irritated skin. Have there been outbreaks of the disease? Major outbreaks have happened in Kenya and other parts of eastern Africa. In 1998, unusually heavy rain caused a large number of insects to come into the region. Outside Africa, outbreaks have happened in India, Japan, Israel, and Paraguay in the past. Source: Indian Express Karakalpakstan Open in new  window Syllabus Prelims – Geography (Places in News) In News: Protests in Uzbekistan’s autonomous province of Karakalpakstan The protests had broken out in response to the government’s plan to restrict the region’s long-held autonomy. Thousands took to the streets of the region’s capital, Nukus. Who are the Karakalpaks? The name Karakalpakstan is derived from the Karakalpak people, an ethnic minority group of around 2 million. Karakalpak translates to ‘black hat’, referring to their traditional headgear. The Karakalpaks consider themselves to be a distinct cultural group in Uzbekistan. Their Turkic language – Karakalpak – is closely related to Kazak. Their separate language is a crucial aspect of their cultural identity. In their genealogical narrative, the Karakalpaks claim to share a common point of origin with the neighbouring Kazakhs, Uzbeks and Turkmen, but believe that over time they diverged from the others. This narrative marks the Karakalpaks as culturally separate from their neighbouring groups What is the region’s history? The Karakalpak people settled around the Amu Darya (a river that feeds into the Aral Sea) in the 18th century. By 1873, they partly came under Russian rule and by 1920 were completely incorporated into the Soviet Union. Their region, Karakalpakstan, was an autonomous area within the USSR, before it was made a part of Uzbekistan as the Karakalpak Autonomous Socialist Republic (ASSR) in 1936. After the fall of USSR Karakalpakstan was formally recognized as an autonomous republic in Uzbekistan’s constitution of 1992, and has the right to secede from on the basis of a nation-wide referendum. What triggered the recent protests? Violent protests broke out in the impoverished Karakalpakstan after President of Uzbekistan published a draft amendment to the Uzbek constitution on June 27, which removed the region’s right to secede Uzbekistan by a referendum. How has the government reacted? With violent protest, government dropped the plans to curtail Karakalpakstan’s right to secede. Why do the Karakalpaks feel neglected? An environmental crisis, and the health and economic troubles it brought in its wake, has made Karakalpakstan an impoverished region and invoked a sense of neglect among the Karakalpak people. Issues Karakalpakstan was one of the most fertile provinces in Uzbekistan, due to its location next to the Aral Sea However, Aral Sea has been steadily shrinking and reducing the arable land in the province. In the 1960s, the Soviet government began to divert water from the Amu Darya and Syr Darya rivers that feed into the sea, and used it to irrigate the water-intensive cotton crop of the desert region. With the Aral Sea becoming increasingly drained of its water, the salt and mineral content began to drastically rise, making the water unfit to drink and killing off the fish in the lake. As a result, fishing industries and communities that relied on the sea collapsed. It was accompanied by significant desertification of the region and Karakalpakstan, which primarily relies on agriculture and animal husbandry, has subsequently become Uzbekistan’s most impoverished region. Source: Indian Express Previous Year Question Q.1) Consider the following pairs: (2016) Community sometimes of mentioned in the news: In the affairs Kurd : Bangladesh Madhesi : Nepal Rohingya : Myanmar Which of the pairs given above is/are correctly matched? 1 and 2 2 only 2 and 3 3 only Foreign Portfolio Investors Open in new  window Syllabus: Prelims – Economy Mains – GS 3 (Economy) In News: Foreign Portfolio Investors (FPIs) have been on a selling spree in India. June 2022 witnessed the worst sell-off at ₹50,000 crore. Their selling actions have triggered a significant decline in benchmark indices, resulting in a drop in market capitalisation of companies. What are FPIs? Foreign portfolio investors are those that invest funds in markets outside of their home Their investments typically include equities, bonds and mutual funds. They are generally not active shareholders and do not exert any control over the companies whose shares they hold. The passive nature of their investment also allows them to enter or exit a stock at will and with ease. Promise of attractive returns on the back of economic growth draws investors including FPIs into a country’s markets. As per data from the National Securities Depositories Ltd. (NDSL), FPIs brought in about ₹3,682 crore in 2002. The year 2017 saw FPI inflows exceed ₹2 lakh crore. Likewise, FPIs withdrew ₹1.18 lakh crore in March 2020 alone — the month when India announced a nationwide lockdown. FPIs also show keenness to invest in bonds when there is a favourable differential between the real interest rates on offer in the country they aim to invest in, and other markets, but more specifically, compared with the largest economy in the world, the U.S. Why have FPIs been selling India holdings? FPIs sold assets worth about ₹50,000 crore in June 2022. This is the second highest sell-off in a month since 1993, after March 2020. Post-pandemic, recovery in the Indian economy has been uneven. The second wave of the COVID-19 pandemic in 2021 devastated lives and livelihoods. As the industry was grappling with this challenge, came Russia’s invasion of Ukraine. Sunflower and wheat supplies from these two nations were impacted, leading to a rise in global prices for these crops. As supplies in general tightened across the globe, commodity prices too rose and overall inflation accelerated. Industrial production has seen a bumpy without giving confidence of a full and final recovery from the pandemic. Purchasing Managers’ Index (PMI) slid to 53.9 in June — the lowest level in nine months — from 54.6 in the previous month. With each of these factors contributing to a decline in confidence of robust economic performance, FPIs have been exiting market investments over these past months. Adding to this is the S. Federal Reserve raising the benchmark interest rate. When the differential between the interest rates in the U.S. and other markets narrow, and if such an occurrence is accompanied by the strengthening of the dollar, then the ability of investors to realise healthy returns is impacted. For returns are measured not only by the value appreciation of assets but also by exchange rate changes. If the dollar strengthens against the rupee, then an investor is able to realise fewer dollars for a given quantum of rupee assets liquidated. They then tend to exit assets seen as ‘risky’ such as in emerging markets like India, Brazil or South Africa. The rupee has been depreciating against the dollar, which has seen a general strengthening against several other currencies. What impact does an FPI sell-off have? When FPIs sell their holdings and repatriate funds back to their home markets, the local currency takes a beating. After all, they sell rupees in exchange for their home market currency. As supply of the rupee in the market rises, its value declines. In this instance, the rupee has been seeing all-time lows recently. With a weaker rupee, the country has to shell out more funds to import the same unit of goods. Source: The Hindu Previous Year Question Q.1) With reference to Foreign Direct Investment in India, which one of the following is considered its major characteristic? (2020) It is the investment through capital instruments essentially in a listed company. It is a largely non-debt creating capital flow. It is the investment which involves debt-servicing. It is the investment made by foreign institutional investors in the Government securities Handcuffing Open in new  window Syllabus Mains – GS 2 (Polity & Governance) In News: Recently, the Karnataka High Court passed a verdict on handcuffing, which is significant. In Suprit Ishwar Divate vs. The State of Karnataka, while awarding two lakh rupees as compensation for handcuffing an accused, without recording the reasons in the police case diary, it gave liberty to the state to recover the amount from the delinquent police officer. Principles of handcuffing The High Court held that an accused, in normal circumstances, need not be handcuffed on arrest. It is only under exceptional circumstances that handcuffing an accused can be resorted to. Further, when there is such handcuffing, the arresting officer must record the reasons, which then would have to stand judicial/court scrutiny. There can be three occasions when a person can be (legally) handcuffed, i.e., an accused on his arrest and before he is produced before the magistrate; an under-trial prisoner during transit from jail to the court and back; and a convict being transported from jail to the court and back. The law with regard to handcuffing was settled in 1980 when the Supreme Court of India, in Prem Shankar Shukla vs Delhi Administration, held that the only circumstance which validates incapacitation by irons is that otherwise there is no other reasonable way of preventing his escape. It said that where an arrestee or a convict can be prevented from escape by increasing security, such an increase is to be a norm rather than handcuffing. On compensation The Court mandated that in case of handcuffing, the reasons for this have to be recorded in writing and it is the duty of the court to make inquiries with the person arrested as to whether he had been handcuffed or not and then approve or reject the reasons. Thus, irrespective of whether the person to be handcuffed is an accused or an under-trial prisoner or a convict, the principles governing handcuffing remain the same. However, if such a person is under the judicial custody of the court, the court’s permission is required for handcuffing except under emergent circumstances. Who should pay compensation? In State of Maharashtra vs Ravikant S. Patil (1991), Bombay High Court held the Inspector of Police responsible for violation of Article 21, ordering him to pay ₹10,000 as compensation. However, the Supreme Court held that the police officer was not personally liable as he had acted in his official capacity. The top court modified the order and directed the state to pay the compensation. Therefore, the judgment of the Karnataka High Court as far as payment of compensation by the police officer is concerned, does not appear to be in sync with the Supreme Court judgment. Solutions If any malice is found behind the use of handcuffs, it needs to be dealt with strongly by the department. There cannot be a justifiable excuse for not mentioning the reasons for handcuffing in the case diary. The Supreme Court, in the Ravikant S. Patil (supra) case, had rightly said that the authorities concerned may, if they think it necessary, hold an inquiry and then decide on action against the police inspector. Therefore, the right approach would be to initiate disciplinary action against the errant officer under service conduct rules, rather than to order the payment of compensation. It would also be appropriate for State governments to review the mobility of the police, the requirement of additional manpower and technical gadgets periodically. Source: The Hindu Baba’s Explainer –  DHFL SCAM DHFL SCAM Syllabus GS-3: Economy and associated challenges GS-2: Government policies and interventions for development in various sectors Context: The CBI has booked former CMD Kapil Wadhawan and director Dheeraj Wadhawan of Dewan Housing Finance Ltd (DHFL) in one of the biggest banking fraud in India. Dewan Housing Finance Ltd (DHFL) is a non-banking financial company (NBFC) and a total of 13 accused have been arrested for defrauding a consortium of 17 banks of Rs 34,615 crore. Read Complete Details on DHFL SCAM Daily Practice MCQs Daily Practice MCQs Q.1) Consider the following statements Under Environment Protection Act, 1986 Central government lay down standards for emission or discharge of environmental pollutants from various sources Central Government has the power to closure, prohibition or regulation of any industry, operation or process under EPA. Choose the incorrect statements: 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following statements about Banni Grasslands These grasslands are found in the state of Gujarat and Rajasthan. Banni grassland is declared a Protected Forest under the Indian Forest Act, 1927. Prosopis Juliflora an alien invasive species has spread through Banni grassland Choose the correct statements: 1 and 2 2 and 3 1, 2 and 3 1 and 3 Q.3) Karakalpakstan, recently seen in news is located in? Uzbekistan Afghanistan Iran Ethiopia Comment the answers to the above questions in the comment section below!! ANSWERS FOR ’6th JULY 2022 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs. ANSWERS FOR 4th JULY 2022 – Daily Practice MCQs Answers- Daily Practice MCQs Q.1) – c Q.2) – c Q.3) – d