Financial Inclusion Index

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Manipur to Implement the NRC

Why in News?

Recently, the Manipur Assembly has resolved to implement the National Register of Citizens (NRC) and establish a State Population Commission (SPC).

• The decision has come after at least 19 apex tribal organisations wrote to the Prime Minister demanding NRC and other mechanism to insulate the indigenous people from the “ever-increasing number of non-local residents”.

Why is Manipur Pushing for NRC?

• According to data presented in the Manipur Assembly, the population of Manipur has increased significantly from 1971 to 2011, pointing to a strong possibility of a huge influx of non-Indians, especially Myanmar Nationals primarily Kukis-Chin Communities.
  • Apart from the Kuki-Chin groups, pro-NRC groups have identified “Bangladeshis” and Muslims from Myanmar who have “occupied the constituency of Jiribam and scattered in the valley areas” as well as Nepalis (Gurkhas) who have “risen in tremendous number” as “outsiders”.
• The northeastern States have been paranoid about “outsiders”, “foreigners” or “alien cultures” swamping out their numerically weaker indigenous communities.
  • Manipur, home to three major ethnic groups, is no different.
  • These ethnic groups are the non-tribal Meitei people and the tribal Naga and Kuki-Zomi groups.
• There has been a history of conflict among these three groups, but the NRC issue has seemingly put the Meiteis and the Nagas on the same page.
  • They claim that an NRC is necessary because the political crisis in neighbouring Myanmar, triggered by the military coup in February 2021, has forced hundreds of people into the State from across its 398-km international border.
  • A majority of those who fled or are fleeing belong to the Kuki-Chin communities, ethnically related to the Kuki-Zomi people in Manipur as well as the Mizos of Mizoram.

What are the Other Protective Mechanisms in Manipur?

• In December 2019, Manipur became the fourth northeastern State to be brought under the Inner-Line Permit (ILP) system after Arunachal Pradesh, Mizoram and Nagaland.
  • The ILP – a temporary official travel document to allow inward travel of an Indian citizen into a protected area, was implemented under the British-era Bengal Eastern Frontier Regulation.
  • However, in less than two years later, an umbrella organisation that spearheaded the ILP movement said the system was flawed and that Manipur needed a stronger and more effective mechanism for protecting indigenous populations.
• Following the “intrusion of immigrants” from Bangladesh (East Pakistan formerly), Myanmar and Nepal, a pass or permit system for Manipur was introduced, which was abolished later on in 1950.
• In June 2021, Manipur government approved 1961 as the base year for identifying the “natives” for the purpose of ILP.
  • Most groups are not happy with this cut-off year and insist on 1951 as the cut-off year for the NRC exercise.
• In 2021, the Ministry of Home Affairs (MHA) directed Nagaland, Manipur, Mizoram, Arunachal Pradesh and Border Guarding Force (BGF), i.e. Assam rifles. to check illegal influx from Myanmar into India.
  • Similar Instructions were Issued in August 2017 and February 2018.

What is the Status of the NRC Elsewhere in the Northeast?

• Assam is the only State in the region that undertook an exercise to update the NRC of 1951 with 24^th March, 1971, as the cut-off date for citizenship of a person.
• Nagaland attempted a similar exercise called RIIN (Register of Indigenous Inhabitants of Nagaland) in June 2019 to primarily sift the indigenous Nagas from the non-indigenous Nagas.

Source: TH

The Privileges of Members of Parliament

Why in News?

Recently, the Vice President of India highlighted the wrong assumptions of Members of Parliament about the Parliamentary privileges, that action can’t be taken against them by investigating agencies during a Parliamentary session.

• There have been protests by some political parties against the alleged misuse of central agencies like the Enforcement Directorate (ED), Central Bureau of Investigation (CBI), and the Income Tax department (IT) by the government to frame political rivals.

What are the Parliamentary Privileges?

• About:
  • Parliamentary privileges are special rights, immunities and exemptions enjoyed by the two Houses of Parliament, their committees and their members.
    • These privileges are defined in Article 105 of the Indian Constitution.
  • Under these privileges, the members of Parliament are exempted from any civil liability (but not criminal liability) for any statement made or act done in the course of their duties.
    • The privileges are claimed only when the person is a member of the house. 
    • As soon as s/he ends to be a member, the privileges are said to be called off.
  • Parliament has not made any special law to exhaustively codify all the privileges. They are rather based on five sources:
    • Constitutional provisions
    • Various laws made by Parliament
    • Rules of both the Houses
    • Parliamentary conventions
    • Judicial interpretations
• Privileges:
  • Freedom of Speech in Parliament:
    • The freedom of speech and expression guaranteed to a citizen under Article 19(2) is different from the freedom of speech and expression provided to a member of the parliament. 
    • It has been guaranteed under Article 105(1) of the Indian constitution. But the freedom is subject to rules and orders which regulate the proceedings of the parliament.
    • Limitations:
      • Freedom of speech should be in accordance with the constitutional provisions and subject to rules and procedures of the parliament, as stated under Article 118 of the Constitution.
      • Under Article 121 of the Constitution, the members of the parliament are restricted from discussing the conduct of the judges of the Supreme Court and the High Court. 
  • Freedom from Arrest:
    • The members enjoy freedom from arrest in any civil case 40 days before and after the adjournment of the house and also when the house is in session. 
    • No member can be arrested from the limits of the parliament without the permission of the house to which s/he belongs so that there is no hindrance in performing their duties.
    • If the detention of any members of the parliament is made, the chairman or the speaker should be informed by the concerned authority, of the reason for the arrest.
      • But a member can be arrested outside the limits of the house on criminal charges against him under the Preventive Detention act, the Essential Services Maintenance Act (ESMA), the National Security Act (NSA), or any such act.
  • Right to Prohibit the Publication of Proceedings:
    • Article 105(2) of the Constitution, no person shall be held liable for publishing any reports, discussions etc. of the house under the authority of the member of the house. 
      • For paramount and national importance, it is essential that the proceedings should be communicated to the public to aware them of what is going on in the parliament.
  • Right to Exclude Strangers:
    • The members of the house have the power and right to exclude strangers who are not members of the house from the proceedings. This right is very essential for securing free and fair discussion in the house.

What Did the Vice President Hold?

• According to the Vice President under the Article 105 of the Constitution, the Members of Parliament enjoy certain privileges so that they can perform their parliamentary duties without any hindrance.
  • One of the privileges is that a Member of Parliament cannot be arrested in a civil case, 40 days before the commencement of the Parliamentary session or Committee meeting, and 40 days thereafter. 
    • This privilege is already incorporated under Section 135A of the Civil Procedure Code, 1908.
  • However, in criminal matters, Members of Parliament are not on a different footing than a common citizen. 
    • It means that a Member of Parliament does not enjoy any immunity from being arrested in a criminal case, during the session, or otherwise.

What is the View of Supreme Court?

• The Supreme Court in the State of Kerala Vs. K. Ajith and Others (2021), observed, that “privileges and immunities are not gateways to claim exemptions from the general law of the land, particularly as in this case, the criminal law which governs the action of every citizen.”
• In July 2021, the Supreme Court rejected Kerala government’s plea to withdraw criminal cases against its MLAs who were charged in the assembly.
  • The Supreme court stated that Parliamentary Privileges are Not Gateways of Immunity and the legislators who indulge in vandalism and general mayhem cannot claim parliamentary privilege and immunity from criminal prosecution.

Way Forward

• The Parliamentary privileges are conferred on the members for the smooth functioning of the parliament. But these rights should always be in conformity with the fundamental rights because they are our representatives and work for our welfare. 
  • If the privileges are not in accordance with the fundamental rights, then the very essence of democracy for the protection of the rights of the citizen will be lost. 
• It is the duty of the parliament not to violate any other rights which are guaranteed by the constitution. The members should also use their privileges wisely and not misuse them. 

Source: TH 

PESA Act

Why in News?

Electoral Parties are trying to woo tribals in Gujarat by making promises to strictly implement the Panchayat Extension to Scheduled Areas (PESA) Act, 1996.

• Gujarat notified the State PESA Rules in January 2017 and made them applicable in 4,503 gram sabhas under 2,584 village panchayats in 50 tribal talukas in eight districts of the state.
• However, the Act has not been enforced in letter and spirit.
• Six states (Himachal Pradesh, Andhra Pradesh, Telangana, Rajasthan, Gujarat, Maharashtra) have formed the PESA laws, and Chhattisgarh would become the seventh state if the rules are enacted.

What is the PESA Act?

• About:
  • The PESA Act was enacted in 1996 “to provide for the extension of the provisions of Part IX of the Constitution relating to the Panchayats to the Scheduled Areas”.
    • Part IX, comprising Articles 243-243ZT of the Constitution, contains provisions relating to municipalities and cooperative societies.
• Provisions:
  • Under the Act, Scheduled Areas are those referred to in Article 244(1), which says that the provisions of the Fifth Schedule shall apply to the Scheduled Areas and Scheduled Tribes in states other than Assam, Meghalaya, Tripura, and Mizoram.
  • The Fifth Schedule provides for a range of special provisions for these areas.
  • Ten states — Andhra Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Telangana — have notified Fifth Schedule areas that cover (partially or fully) several districts in each of these states.
• Objectives:
  • To ensure self-governance through Gram Sabhas (village assemblies) for people living in the Scheduled Areas.
  • It recognises the right of tribal communities, who are residents of the Scheduled Areas, to govern themselves through their own systems of self-government, and also acknowledges their traditional rights over natural resources.
  • Empowers Gram Sabhas to play a key role in approving development plans and controlling all social sectors.

What is the Significance of Implementing the Act?

• Democratic Decentralisation: PESA empowers gram sabhas to play a key role in approving development plans and controlling all social sectors. This includes management of:
  • Resources over jal, jangal, zameen (water, forest and land)
  • Minor forest produce
  • Human resources: Processes and personnel who implement policies
  • Managing local markets
  • Preventing land alienation
  • Regulating intoxicants among other things
• Preserving Identity: The powers of gram sabhas include maintenance of cultural identity and tradition, control over schemes affecting the tribals, and control over natural resources within the area of a village.
• Conflict Resolution: The PESA Act thus enables gram sabhas to maintain a safety net over their rights and surroundings against external or internal conflicts.
• Public Watchdog: The gram sabha would have the powers to monitor and prohibit the manufacturing, transport, sale and consumption of intoxicants within their village limits.

What are the Issues Related to PESA?

• Partial Implementation: The state governments are supposed to enact state laws for their Scheduled Areas in consonance with this national law.
  • This has resulted in the partially implemented PESA.
  • The partial implementation has worsened self-governance in Adivasi areas,like in Jharkhand.
• Administrative Hurdles: Many experts have asserted that PESA did not deliver due to the lack of clarity, legal infirmity, bureaucratic apathy, absence of political will, resistance to change in the hierarchy of power, and so on.
• Followed in Letter Rather than Spirit: Social audits conducted across the state have also pointed out that in reality different developmental schemes were being approved on paper by Gram Sabha, without actually having any meeting for discussion and decision making.

Way Forward

• PESA, if it is implemented in letter and spirit, will rejuvenate the dying self-governance system in the tribal area.
• This will also give an opportunity to correct the loopholes in the traditional governance system and make it a more gender-inclusive and democratic space.

Source: IE

World Tribal Day

Why in News?

The International Day of the World's Indigenous People is observed on 9 August each year to raise awareness and protect the rights of the world's indigenous population.

• On 9^th August 2018, the first National Report on the State of India’s Tribal People’s Health was submitted to the Government of India by the Expert Committee on Tribal Health.

What is World Tribal Day?

• About:
  • The day recognizes the first meeting of the United Nations Working Group on Indigenous Populations in Geneva in 1982.
    • It has been celebrated every year since 1994, in accordance with the declaration by the United Nations.
  • To date, numerous indigenous peoples experience extreme poverty, marginalization, and other human rights violations.
• Theme:
  • The theme for 2022 is “The Role of Indigenous Women in the Preservation and Transmission of Traditional Knowledge”.

What do we need to know about the Report?

• About:
  • The 13-member committee was jointly appointed by the Ministry of Health and Family Welfare and the Ministry of Tribal Affairs.
  • It took five years of research for the committee to bring out the evidence and provide a true picture of the state of tribal people of the country.
• Findings:
  • Geographical Location:
  • Tribal people are concentrated in 809 blocks in India.
    • Such areas are designated as the Scheduled Areas.
  • Unexpected finding was that 50% of India’s tribal population (around 5.5 crore) live outside the Scheduled Areas, as a scattered and marginalised minority.
  • Health:
    • The health status of tribal people has certainly improved during the last 25 years.
    • Mortality Rate:
      • Under-five child mortality rate has declined from 135 (Deaths per 1000) in 1988 (National Family Health Survey NFHS-1) to 57(Deaths per 1000) in 2014 (NFHS-4).
        • The % of excess of under-five mortality among STs compared to others has widened.
    • Malnutrition:
      • Child malnutrition is 50% higher in tribal children (42% compared to 28% in others).
    • Malaria and Tuberculosis:
      • Malaria and tuberculosis are three to eleven times more common among the tribal people.
        • Though the tribal people constitute only 8.6% of the national population, 50% malaria deaths in India occur among them.
    • Public Health Care:
      • Tribal people heavily depend on government-run public health care institutions, such as primary health centres and hospitals.
        • There is a 27% to 40% deficit in the number of such facilities, and 33% to 84% deficit in medical doctors in tribal areas.
        • Government health care for the tribal people is starved of funds as well as of human resources.
    • Tribal Sub-Plan (TSP) Audit:
      • It is an official policy of allocating and spending an additional financial outlay equal to the percentage of the ST population in the State.
      • As estimated for 2015-16, annually Rs 15,000 crore should be additionally spent on tribal health.
        • However, it has been completely flouted by all States.
        • No accounts or accountability exist on policy.
          • No one knows how much was spent or not spent.

What were the Major Recommendations of the Committee?

• Firstly, the committee suggested launching a National Tribal Health Action Plan with a goal to bring the status of health and healthcare at par with the respective State averages in the next 10 years.
• Second, the committee suggested nearly 80 measures to address the 10 priority health problems, the health care gap, the human resource gap and the governance problems.
• Third, the committee suggested allocation of additional money so that the per capita government health expenditure on tribal people becomes equal to the stated goal of the National Health Policy (2017), i.e., 2.5% of the per capita GDP.

What Steps has the Government of India taken for Tribal Welfare?

• Anamaya
• 1000 Springs Initiative
• Pradhan Mantri Adi Adarsh Gram Yojna (PMAAGY)
• TRIFED
• Digital Transformation of Tribal Schools
• Development of Particularly Vulnerable Tribal Groups
• Pradhan Mantri Van Dhan Yojana
• Eklavya Model Residential Schools

Source: TH

Pradhan Mantri Adi Adarsh Gram Yojana

Why in News?

Recently, Government has modified the earlier scheme of ‘Special Central Assistance to Tribal Sub-Scheme (SCA to TSS)’ with nomenclature ‘Pradhan Mantri Adi Adarsh Gram Yojana (PMAAGY)’ for implementation during 2021-22 to 2025-26.

What is Pradhan Mantri Adi Adarsh Gram Yojana?

• About:
  • It supplements the efforts of State Governments for development and welfare of tribal people by extending Special Central Assistance as an additive to the State Tribal Sub-Plan (TSP).
  • It aims at mitigating gaps and providing basic infrastructure in villages with significant tribal population in convergence with funds available under different schemes in Central Scheduled Tribe Component.
• Revision of Scheme Guidelines:
  • To ensure all round development of the selected villages, so that they can indeed become ‘Adarsh Grams’, the SCA to TSS Scheme was also revised to capture the Gaps in critical socio-economic ‘Monitorable Indicators’ as part of various sectors/domains.
    • These domains include water and sanitation, education, health and nutrition, agricultural best practices etc. amongst others.
• New Approach for Implementation:
  • The identification of needs or Gaps with regard to the ‘Monitorable Indicators’ are based on a Need Assessment exercise.
  • The ‘Village Development Plan’ (VDP) is based on the data collected as part of the Need Assessment exercise.
  • PMAGY provides the platform for convergent implementation of other Schemes with the aim to achieve saturation in the various domains.
• Objectives:
  • Preparing Village Development Plan based on the needs, potential, and aspirations.
  • Maximizing the coverage of individual/family benefit schemes of the Central / State Governments.
  • Improving the infrastructure in vital sectors like health, education, connectivity and livelihood.
  • The scheme envisions to mitigate gaps in prominent 8 sectors of development:
    • Road connectivity (Internal and Inter village /block)
    • Telecom connectivity (Mobile /internet)
    • School
    • Anganwadi Centres
    • Health Sub-Centre
    • Drinking water facility
    • Drainage
    • Solid waste management

What are the Basic Safeguards Provided by Indian Constitution for Scheduled Tribes?

• The Constitution of India does not endeavor to define the term 'tribe', however, the term Scheduled Tribe' was inserted in the Constitution through Article 342 (i).
  • It lays down that 'the President may, by public notification, specify the tribes or tribal communities or parts of or groups within the tribes or tribal communities or parts which shall, for the purposes of this Constitution, be deemed to be Scheduled Tribes.
  • The Fifth Schedule of the Constitution provides for the setting up a Tribes’ Advisory Council in each of the States having Scheduled Areas.
• Educational & Cultural Safeguards:
  • Article 15(4): Special provisions for advancement of other backward classes (it includes STs).
  • Article 29: Protection of Interests of Minorities (it includes STs).
  • Article 46: The State shall promote, with special care, the educational and economic interests of the weaker sections of the people, and in particular, of the Scheduled Castes, and the Scheduled Tribes, and shall protect them from social injustice and all forms of exploitation.
  • Article 350: Right to conserve distinct Language, Script or Culture.
• Political Safeguards:
  • Article 330: Reservation of seats for STs in Lok Sabha.
  • Article 332: Reservation of seats for STs in State Legislatures.
  • Article 243: Reservation of seats in Panchayats.
• Administrative Safeguard:
  • Article 275: It provides for the grant of special funds by the Union Government to the State Government for promoting the welfare of Scheduled Tribes and providing them with a better administration.

What are some other Initiatives for Tribal Population?

• TRIFED:
  • The Tribal Cooperative Marketing Development Federation of India (TRIFED) came into existence in 1987. It is a national-level apex organization functioning under the administrative control of the Ministry of Tribal Affairs.
    • The main aim of this drive is to activate the Van Dhan Vikas Kendras (VDVKs) in the villages.
• Digital Transformation of Tribal Schools:
  • Ministry of Tribal Affairs (MTA) inked a Memorandum of Understanding (MoU) with Microsoft to support the digital transformation of schools such as Eklavya Model Residential Schools (EMRS) and Ashram Schools.
• Development of Particularly Vulnerable Tribal Groups:
  • Ministry of Tribal Affairs has implemented the scheme of “Development of PVTGs” which covers 75 Particularly Vulnerable Tribal Groups (PVTGs) for their comprehensive socio-economic development.
• Pradhan Mantri Van Dhan Yojana:
  • The ‘Sankalp Se Siddhi’ initiative, also known as 'Mission Van Dhan', was introduced by the central government in 2021, in line with the Prime Minister's aim to establish a sustainable livelihood for India's tribal population.
• Eklavya Model Residential Schools:
  • EMRS is a scheme for making model residential schools for Indian tribals (ST- Scheduled Tribes) across India. It started in the year 1997-98.
  • The Eklavya Model Residential School in Shinde (Nashik) has been planned by the Ministry Tribal Affairs to give impetus to quality education in nearby tribal areas.

Source: PIB

Quit India Movement

Why in News?

On 8th Aug 2022, India completed 80 years of Quit India Movement also known as August Kranti.

What was the Quit India Movement?

• On 8^th August 1942, Mahatma Gandhi called to end British rule and launched the Quit India Movement at the session of the All-India Congress Committee in Mumbai.
• Gandhiji gave the call “Do or Die” in his speech delivered at the Gowalia Tank Maidan, now popularly known as August Kranti Maidan.
• Aruna Asaf Ali popularly known as the 'Grand Old Lady' of the Independence Movement is known for hoisting the Indian flag at the Gowalia Tank Maidan in Mumbai during the Quit India Movement.
• The slogan ‘Quit India’ was coined by Yusuf Meherally, a socialist and trade unionist who also served as Mayor of Mumbai.
  • Meherally had also coined the slogan “Simon Go Back”.

What caused the Movement?

• Failure of Cripps Mission: The immediate cause for the movement was the collapse of Cripps Mission.
  • Under Stafford Cripps, the mission was sent to resolve the Indian question of a new constitution and self-government.
  • It failed because it offered India not complete freedom but the Dominion Status to India, along with the partition.
• Indian Involvement in World War II without prior consultation:
  • The British assumption of unconditional support from India to the British in World War II was not taken well by the Indian National Congress.
• Prevalence of anti-British Sentiment:
  • The anti-British sentiments and demand for full-independence had gained popularity among indian masses.
• Centralisation of Many Small Movements:
  • The two decades of mass movement which were being conducted on a much more radical tone under the leadership of the various associated and affiliated bodies of the Congress, like All India Kisan Sabha, Forward Bloc etc. had already prepared the ground for the movement.
• Shortage of Essential Commodities:
  • The economy was also in shatters as a result of World War II.

What were the Demands of the Movement?

• The demand was to end the British rule in India with immediate effect to get the cooperation of Indians in World War-II against fascism.
• There was a demand to form a provisional government after the withdrawal of the Britishers.

What were the Phases of Movement?

• First Phase:
  • First Phase, urban revolt, marked by strikes, boy cott and picketing (protesting), which were quickly suppressed.
  • There were strikes and demonstrations all over the country and workers provided the support by not working in the factories.
  • Gandhiji was soon imprisoned at Aga Khan Palace in Pune and almost all leaders were arrested.
• Second Phase:
  • The focus shifted to the countryside, which witnessed a major peasant rebellion, marked by destruction of communication sys­tems, such as railway tracks and stations, telegraph wires and poles, attacks on government buildings or any other visible symbol of colo­nial authority.
• Third Phase:
  • The last phase witnessed the formation of national governments or parallel governments in isolated pockets (Ballia, Tamluk, Satara etc.)

What were the Successes and Failures of the Movement?

• Successes:
  • Rise of Future Leaders:
    • Underground activities were taken by leaders that included Ram Manohar Lohia, J.P. Narayan, Aruna Asaf Ali, Biju Patnaik, Sucheta Kriplani, etc which later emerged as prominent leaders.
  • Women Participation:
    • Women took active participation in the movement. Female leaders like Usha Mehta helped set up an underground radio station which led to the awakening about the movement.
  • Rise of Nationalism:
    • A greater sense of unity and brotherhood emerged due to the Quit India Movement. Many students dropped out of schools and colleges, people gave up their jobs and withdrew money from the banks.
  • Paved the way for Independence:
    • While the Quit India campaign was crushed in 1944, with the British refusing to grant immediate independence, saying it could happen only after the war had ended, they came to the important realization that India was ungovernable in the long run due to the cost of World War II.
    • It changed the nature of political negotiations with the British, ultimately paving the way for India's independence.
• Failures:
  • Brutal Repression:
    • The movement saw violence in some places which was not premeditated.
    • The movement was violently suppressed by the British – people were shot, lathi-charged, villages burnt and enormous fines imposed.
    • Over 1,00,000 people were arrested and the government resorted to violence in order to crush the agitation.
  • Lack of Support:
    • Muslim League, the Communist Party of India and the Hindu Mahasabha did not support the movement. The Indian bureaucracy also did not support the movement.
      • The League was not in favour of the British leaving India without partitioning the country first.
      • The Communist party supported the British since they were allied with the Soviet Union.
      • The Hindu Mahasabha openly opposed the call for the Quit India Movement and boycotted it officially under the apprehension that the movement would create internal disorder and would endanger internal security during the war.
    • Meanwhile, Subhas Chandra Bose, organised the Indian National Army and the Azad Hind government from outside the country.
    • Many Congress members like C Rajagopalachari resigned from the provincial legislature as they did not favour Mahatma Gandhi's idea.

Source: PIB

Monetary Policy Review: RBI

Why in News?

Recently, the Reserve Bank of India (RBI) in its Monetary Policy Committee (MPC) Review announced a 50-basis point hike in the repo rates thereby taking the cumulative rate hike over the last three months to 140 basis points.

What are the Highlights?

• Key Rates:
  • Policy Repo Rate: 5.40%
    • Repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) lends money to commercial banks in the event of any shortfall of funds. Here, the central bank purchases the security.
  • Standing Deposit Facility (SDF): 5.15%
    • The SDF is a liquidity window through which the RBI will give banks an option to park excess liquidity with it.
    • It is different from the reverse repo facility in that it does not require banks to provide collateral while parking funds.
  • Marginal Standing Facility Rate: 5.65%
    • MSF is a window for scheduled banks to borrow overnight from the RBI in an emergency situation when interbank liquidity dries up completely.
      • Under interbank lending, banks lend funds to one another for a specified term.
  • Bank Rate: 5.65%
    • It is the rate charged by the RBI for lending funds to commercial banks.
  • Cash Reserve Ratio (CRR): 4.50%
    • Under CRR, the commercial banks have to hold a certain minimum amount of deposit (NDTL) as reserves with the central bank.
  • Statutory Liquidity Ratio (SLR): 18.00%
    • SLR is the minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities.
• Projections:
  • GDP Growth for 2022-23: 7.2%
    • Gross Domestic Product (GDP) gives the economic output from the consumers’ side. It is the sum of private consumption, gross investment in the economy, government investment, government spending and net foreign trade (the difference between exports and imports).
  • Inflation Projection for 2022-23: 6.7%
    • Inflation is the rate of increase in prices over a given period of time. Inflation is typically a broad measure, such as the overall increase in prices or the increase in the cost of living in a country.

Why a Hike in the Repo Rate?

• Even as the consumer price inflation has eased from its surge in April 2022, it is expected to remain uncomfortably high and above the upper threshold (6%) of the target.
• These elevated levels of inflation remained the key concern for the MPC as the inflation target of Government of India according to RBI is (4%+/- 2%)
• It is expected that Inflation would remain above the Upper Threshold (6 %), in Q2 and Q3 (FY 2022-23).
• This sustained high inflation may destabilise inflation expectations and harm growth in the medium term.
• The withdrawal of Monetary Accommodation (Expanding money Supply) or increasing Rates can keep inflation expectations in range and contain the Second-Round Effects of Inflation.
  • Second-round effects occur when inflation passes to impact the wage and price setting, leading to a wage-price spiral.

How will Hike in repo rate impact Borrowers and Depositors?

• It will hit the home loan customers and prospective borrowers, as it will result in a hike in lending rates.
• It will benefit the conservative investors, who like to park their funds in bank fixed deposits, since the deposit rates are expected to increase following the rate hike.
• The deposit rate hike will help fulfil the credit demand in the economy and also help banks raise additional funds.

What about Liquidity?

• While improving the availability of funds with the banks, Rates Hike will lead to a gradual decline in systemic liquidity.
• To maintain adequate liquidity in the system, RBI will conduct two-way fine-tuning operations in the form of Variable Rate Repo (VRR) and Variable Rate Reverse Repo (VRRR) operations of different maturities.
  • The Variable Rate Operations are usually undertaken to reduce the money flow by taking out existing cash present in the system.
  • The central bank has been rebalancing the surplus liquidity in the system by shifting it out of the fixed-rate overnight reverse repo window to VRRR auctions of longer maturity.

Source: TH

Small Satellite Launch Vehicle (SSLV)

Why in News?

Recently, Indian Space Research Organisation (ISRO) launched the first flight of the Small Satellite Launch Vehicle( SSLV), carrying an Earth observation satellite EOS-02 and co-passenger students' satellite AzaadiSAT.

• However, the mission failed to place the satellites in their required orbits, and the satellites, as they were already detached from the launch vehicle, were lost.

What is a Small Satellite Launch Vehicle?

• About:
  • Small Satellite Launch Vehicle (SSLV) is a three stage Launch Vehicle configured with three Solid Propulsion Stages and a liquid propulsion-based Velocity Trimming Module (VTM) as a terminal stage.
    • SSLV is 2m in diameter and 34m in length with a lift-off weight of around 120 tonnes.
    • SSLV is capable of launching 500kg satellites in 500km planar orbit from Satish Dhawan Space Centre (SDSC).
• Key Features:
  • Low cost,
  • Low turn-around time,
  • Flexibility in accommodating multiple satellites,
  • Launch demand feasibility,
  • Minimal launch infrastructure requirements, etc.
• Significance:
  • The Era of small satellites:
    • Earlier, the bigger satellite payloads were given importance, but as the sector grew many players emerged like Businesses, government agencies, universities, and laboratories began to send satellites.
      • Mostly all of them fall in the category of small satellites.
  • The Rise in Demand:
    • The demand for the launch of small satellites has increased at a rapid pace in the last eight to ten years, due to the ever-growing need for space-based data, communication, surveillance, and commerce.
  • Saves cost:
    • Satellite manufacturers and operators do not have the luxury of waiting months for space on a rocket or paying exorbitant trip charges.
      • Therefore, Organizations are increasingly developing a constellation of satellites in space.
      • Projects like SpaceX's Starlink and One Web are assembling a constellation of hundreds of satellites.
  • Business opportunity:
    • With the rise in demand, the rockets could be launched frequently with less cost, this provides a business opportunity for space agencies like ISRO to tap the potential of the sector as most of the demand comes from companies that are launching satellites for commercial purposes.

What is the SSLV-D1/EOS-02 Mission?

• It was aimed at garnering a larger pie in the small launch vehicles market, as it could place the satellites into Low Earth Orbit.
• It was carrying the two satellites on board the rocket –
  • The primary EOS-2 Earth-observing satellite- EOS-02 is an earth observation satellite designed and realised by ISRO.
    • This microsat series satellite offers advanced optical remote sensing operating in infra-red band with high spatial resolution.
  • The secondary AzaadiSAT student satellite- It is an 8U Cubesat weighing around 8 kg.
    • It carries 75 different payloads each weighing around 50 grams and conducts femto-experiments.
      • It carried out tiny experiments which would have measured the ionising radiation in its orbit and also a transponder which worked in the ham radio frequency to enable amateur operators to access it.
    • Girl students from rural regions across the country were provided guidance to build these payloads.
      • The payloads are integrated by the student team of “Space Kidz India”.

What was the Issue?

• The problem appeared to be the SSLV’s terminal stage, called the velocity trimming module (VTM).
  • According to the launch profile, the VTM was supposed to have burnt for 20 seconds at 653 seconds after launch.
    • However, it burnt for only 0.1 seconds, denying the rocket the requisite altitude boost.
• The two satellites separated from the vehicle after the VTM burned, there was a malfunctioning of a sensor which resulted in placing the satellites in an elliptical orbit, rather than a circular orbit.
• According to ISRO, all the stages performed normally, both the satellites were injected. But the orbit achieved was less than expected, which makes it unstable.

What is the Difference between Circular and Elliptical Orbits?

• Elliptical Orbits:
  • Mostly objects such as satellites and spacecrafts are put in elliptical orbits only temporarily.
  • They are then either pushed up to circular orbits at a greater height or the acceleration is increased until the trajectory changes from an ellipse to a hyperbola and the spacecraft escapes the gravity of the Earth in order to move further into space — for example, to the Moon or Mars or further away.
• Circular Orbits:
  • Satellites that orbit the Earth are mostly placed in circular orbits.
  • One reason is that if the satellite is used for imaging the Earth, it is easier if it has a fixed distance from the Earth.
  • If the distance keeps changing as in an elliptical orbit, keeping the cameras focused can become complicated.

Source: IE

Electromagnetic Field (EMF) Emissions

Why in News?

Recently, in a written reply to a question in Rajya Sabha, the Minister of State for Communications stated that there is no impact on the Environment due to Electromagnetic Field levels in India.

What are Electromagnetic Field (EMF) Emissions?

• About:
  • Electromagnetic fields are a combination of invisible electric and magnetic fields of force.
    • Electric fields are created by differences in voltage: the higher the voltage, the stronger will be the resultant field.
    • Magnetic fields are created when electric current flows: the greater the current, the stronger the magnetic field.
  • Natural Sources of EMF:
    • Electromagnetic fields are present everywhere in our environment but are invisible to the human eye.
    • Electric fields are produced by the local build-up of electric charges in the atmosphere associated with thunderstorms.
  • Human-Made Sources of EMF:
    • Besides natural sources, the electromagnetic spectrum also includes fields generated by human-made sources: X-rays are employed to diagnose a broken limb after a sport accident.
    • The electricity that comes out of every power socket is associated with low frequency electromagnetic fields.
    • Various kinds of higher frequency radio waves are used to transmit information – whether via TV antennas, radio stations or mobile phone base stations.
• Issues:
  • Impacts on Humans:
    • Numerous worldwide studies link EMFs to serious health problems such as leukemia, miscarriages, chronic fatigue, weakened immune system, forgetfulness, depression, nausea and loss of libido.
  • Impacts on the Environment:
    • Radars are used for navigation, weather forecasting emit pulsed microwave signals, which are detrimental to health of flora and fauna present around these radars.

What are the Initiatives Taken by the Government to Curb EMF Emissions?

• As per the Government, EMF emissions from Mobile towers are non-ionizing Radio frequencies having very minuscule power and are incapable of causing any adverse environmental impact.
• The International EMF Project of the World Health Organisation (WHO) published an information sheet in 2005 on the effect of EMF emissions on animals, insects, vegetation, and aquatic life and has concluded that the exposure limits in the Non-Ionizing Radiation Protection (ICNIRP) guidelines for the protection of human health are also protective of the environment.
  • The present norms for Electromagnetic Field (EMF) emissions from mobile towers in India are already ten times more stringent (even lower) than the safe limits prescribed by ICNIRP and recommended by WHO.
• The government has put in place a well-structured process and mechanism for monitoring any violation so that Telecom Service Providers (TSPs) adhere to the prescribed norms including the submission of a self-certificate before the commercial start of the Base Transceiver Station (BTS) site.
• The field units of the Department of Telecommunications (DoT) regularly carry out the EMF audit of up to 10% of BTS Sites annually on a random basis.
  • DoT also imposes a financial penalty on TSPs whose BTSs are found to exceed the prescribed EMF emission limits.
• In addition, if emission levels of such non-compliant BTSs are not brought within prescribed limits within 30 days, the same is liable to be shut down as per the prescribed procedure.

Source: PIB