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  • 25 Apr 2023
  • 61 min read
International Relations

Sudan Crisis and Operation Kaveri

For Prelims: Red Sea, Nile River, Sudan Crisis, Operation Kaveri, Rapid Support Forces

For Mains: Factors contributing to the crisis in Sudan, and the possible implications for India's foreign policy in the region.

Why in News?

India has started ‘Operation Kaveri’ to evacuate its nationals owing to the Current Crisis in Sudan.

  • Around 3,000 Indians are stuck in various parts of Sudan, including capital Khartoum and in distant provinces like Darfur.

What is Operation Kaveri?

    • Operation Kaveri is a codename for India's evacuation effort to bring back its citizens stranded in Sudan amid intense fighting between the army and a rival paramilitary force there.
    • The operation involves the deployment of Indian Navy's INS Sumedha, a stealth offshore patrol vessel, and two Indian Air Force C-130J special operations aircraft on standby in Jeddah.
    • There are about 2,800 Indian nationals in Sudan, and there is also a settled Indian community of about 1,200 in the country.

What is the Current Crisis in Sudan?

  • Background:
    • The conflict in Sudan has its roots in the overthrowing of long-serving President Omar al-Bashir by military generals in April 2019, following widespread protests.
    • This led to an agreement between the military and protesters, under which a power-sharing body called the Sovereignty Council was established to lead Sudan to elections at the end of 2023.
    • However, the military overthrew the transitional government led by Abdalla Hamdok in October 2021, with Burhan becoming the de-facto leader of the country and Dagalo his second-in-command.
  • Tussle between Army and RSF:
    • Soon after the 2021 coup, a power struggle between two military (SAF) and paramilitary (RSF) generals arose, interrupting a plan to transition to elections.
      • A preliminary deal was reached in December 2021 for a political transition, but negotiations hit a roadblock over the integration of the paramilitary Rapid Support Forces (RSF) with the Sudanese Armed Forces (SAF), due to disagreements over the timetable and security sector reforms.
    • Tensions escalated over the control of resources and RSF integration, leading to clashes.
      • There was disagreement over how the 10,000-strong RSF should be integrated into the army, and which authority should oversee that process.
    • Also, Dagalo (RSF general) wanted to delay the integration for 10 years but the army said it would take place in the next two years.

What is RSF?

  • The RSF is a group, evolved from Janjaweed militias, which fought in a conflict in the 2000s in the Darfur region in West Sudan nearing the Border of Chad.
    • Over time, the militia grew and made into the RSF in 2013, and its forces were used as border guards in particular.
  • In 2015, the RSF along with Sudan’s army began sending troops to fight in the war in Yemen alongside Saudi and Emirati forces.
  • In addition to the Darfur region, the RSF was deployed to states such as South Kordofan and the Blue Nile, where it was accused of committing human rights abuses.
    • In a 2015 report, Human Rights Watch described its forces as “men with no mercy”.

What are the Repercussions of the Current Crisis?

  • Difficulty in Democratic Transition: The battle between the army and RSF has likely made Sudan’s transition to democracy more difficult.
    • It is anticipated the tussle may transform into a wider conflict leading to the country’s collapse.
  • Economic Crisis: Sudan’s economy is struggling, battered by hyperinflation and crippled by massive foreign debt.
    • Billions of dollars given in international support and debt relief were frozen after the ouster of the Hamdok government.
  • Disturbance in Neighbouring Countries: Since Sudan's location borders seven countries, this conflict may spill over into neighboring countries and destabilize the region. Chad and South Sudan are particularly vulnerable.
    • The situation could lead to major external intervention if the fighting continues. Refugees from Sudan's contested areas have already arrived in Chad.

How are India-Sudan Relations?

  • Strategic Significance of Sudan:
    • Sudan is located in Northeast Africa and is the third largest African Nation.
    • Owing to its strategic location on the Red Sea, access to the Nile River, the vast swath of gold reserves and agriculture potential, it has long been coveted by the outside powers, including its neighbours, the Gulf countries, Russia and the Western nations.
  • Bilateral Projects:
    • It had already implemented 49 bilateral projects through concessional lines of credit worth USD 612 million in areas such as energy, transport, and agribusiness industry in Sudan in 2021.
  • Support in Juba Peace Agreement:
    • India supported Sudan's efforts to form a transitional government and also supported the Juba Peace Agreement signed by the government in October 2020.
      • Chad, UAE and Intergovernmental Authority on Development (IGAD) were the guarantors, while Egypt and Qatar were witnesses to the peace deal.
    • The agreement covered various areas such as governance, security, and justice and was important for future constitutional negotiations.
      • India also supported including armed movements from outside in the negotiation process and a national plan for civilian protection with 1,200 personnel.
  • Indian Technical and Economic Cooperation:
    • Under the Indian Technical and Economic Cooperation (ITEC) India offered 290 scholarships to Sudan towards capacity building. Besides, India had offered humanitarian assistance including food supplies to Sudan in 2020.
  • Bilateral Trade:
    • Over the years, the bilateral trade between India and Sudan has grown from USD 327.27 million in 2005-06 to USD 1663.7 million in 2018-19.
    • India’s investments in Sudan and South Sudan were roughly USD 3 billion, out of which USD 2.4 billion was invested in the petroleum sector from ONGC Videsh, a public sector undertaking.
What are the Evacuation Operations carried out by India?
Operation Ganga (2022):
  • It is an evacuation mission to bring back all the Indian nationals who are currently stranded in Ukraine.
  • The tensions between Russia and Ukraine are currently heightened, with war erupting in Ukraine after the Russian military launched a series of attacks recently.
Operation Devi Shakti (2021):
  • Operation Devi Shakti was India's complex mission to evacuate its citizens and Afghan partners from Kabul after its swift takeover by the Taliban.

Vande Bharat (2020):
  • When the Covid-19 pandemic hit the world, the Centre launched the Vande Bharat Mission to bring back Indian citizens stranded in foreign countries.
  • In the multiple phases of the operation, about 60 lakh Indians were brought back as on 30th April, 2021

Operation Samudra Setu (2020):
  • It was a naval operation as part of the national effort to bring home Indian citizens from overseas during the Covid-19 pandemic.
  • It successfully brought back 3,992 Indian citizens to their homeland by sea.
  • Indian Naval ships Jalashwa (Landing Platform Dock), and Airavat, Shardul and Magar (Landing Ship Tanks) participated in this operation which lasted over 55 days and involved traversing more than 23,000 km by sea.

Evacuation from Brussels (2016):
  • In March 2016, Belgium was hit by terrorist strikes at Brussels Airport in Zaventem, and one at Maalbeek Metro station in central Brussels.
  • A total of 242 Indians, including 28 crew members, returned to India in a Jet Airways flight.
Operation Raahat (2015):
  • In 2015, a conflict raged between the Yemeni government and Houthi rebels.
  • Thousands of Indians were stranded and Yemen was not accessible by air due to a no-fly zone announced by Saudi Arabia.
  • Under Operation Raahat, India evacuated nearly 5,600 people from Yemen.

Operation Maitri (2015):
  • It is the joint relief and rescue operation by the Indian government and the Indian Armed forces in the aftershock of the 2015 Nepal earthquake.
  • The joint Army-Air Force operation brought over 5,000 Indians back from Nepal by Air Force and civilian planes. The Indian army successfully evacuated 170 foreign nationals from the US, the UK, Russia and Germany.

Operation Safe Homecoming (2011):
  • India launched ‘Operation Homecoming’ to bring back Indian citizens stranded in conflict-torn Libya.
  • Under the operation, India evacuated 15,400 Indian nationals.
  • The air-sea operation was conducted by the Indian Navy and Air India.

Operation Sukoon (2006):
  • As Israel and Lebanon broke into military conflict in July 2006, India rescued its stranded citizens by launching this operation, which is now famously known as the ‘Beirut Sealift’.
  • It was the largest naval rescue mission since the 'Dunkirk' evacuation.
  • The task force evacuated about 2,280 people including some Nepalese and Sri Lankan nationals between 19th July and 1st August 2006.

1990 Kuwait Airlift (1990):
  • In 1990, when 1,00,000 Iraqi soldiers armed with 700 tanks marched into Kuwait, the royals and VIPs had fled to Saudi Arabia.
  • The general public was left behind to fend for themselves.
  • Over 1,70,000 of those stranded in Kuwait were Indians.
  • India kicked off the evacuation process in which over 1,70,000 Indians were airlifted and repatriated to India.

    Way Forward

    • Since India cannot depend only on West Asian countries such as Iran, Iraq, and Saudi Arabia that constitute the global energy heartland, it has consciously cultivated relations with oil-rich African states like Sudan, Nigeria, and Angola to meet its growing energy demands.
      • It will be important for India to protect its investments, trade and other interests in the Horn of Africa.
      • The Red Sea region is crucial to India’s maritime security strategy.
    • In view of the existing structures of Indo-Sudanese ties and Sudan’s location in the Horn of Africa, India needs to guard its trade, investments, and interests in the region before taking any hasty step of recognising the new regime.

    UPSC Civil Services Examination Previous Year Question (PYQ)

    Q. Very recently, in which of the following countries have lakhs of people either suffered from severe famine/acute malnutrition or died due to starvation caused by war/ethnic conflicts? (2018)

    (a) Angola and Zambia
    (b) Morocco and Tunisia
    (c) Venezuela and Colombia
    (d) Yemen and South Sudan

    Ans: (d)

    Source: TH

    International Relations

    IMF and World Bank Group's Spring Meetings 2023

    For Prelims: International Monetary Fund (IMF), World Bank Group (WBG), Group of Twenty (G20) , Debt Restructuring, Vulnerable Twenty Group of Ministers of Finance (V20), Poverty Reduction and Growth Trust (PRGT)

    For Mains: Major Takeaways of IMF and WBG Spring Meetings 2023, Accra Marrakech Agenda, climate change and debt crisis and vulnerability of lesser developed countries.

    Why in News?

    Recently, The International Monetary Fund (IMF) and World Bank Group (WBG) held their Spring Meetings in Washington DC, United States.

    • The discussions focused on issues of international concern, such as the international debt crisis, rising inflation, climate and development, poverty eradication, and slowing economic growth.

    What are the Major Takeaways of IMF and WBG Spring Meetings 2023?

    • Debt Crisis:
      • Global Sovereign Debt Roundtable (GSDR):
        • The Global Sovereign Debt Roundtable (GSDR), co-chaired by the IMF, WBG, and India as the Group of Twenty (G20) 2023 presidency.
        • GSDR met with bilateral creditors (France — chair of the Paris Club, US, the United Kingdom, China, Saudi Arabia and Japan) and debtor countries (Ecuador, Suriname, Zambia, Sri Lanka, Ethiopia and Ghana) and Brazil as the forthcoming presidency of the G20 in 2024.
      • Issue Highlighted:
        • Many developing countries are facing high debt burdens due to the pandemic, rising inflation, and the Russia-Ukraine war, which negatively impacts their ability to invest in climate mitigation and adaptation projects.
          • There was a particular spotlight on African nations that have been disproportionately impacted by Covid-19 and the consequent economic downturn.
      • Way Suggested:
        • GSDR discussed debt sustainability and ways to address debt restructuring challenges.
          • ‘Debt Restructuring’ refers to the process by which countries, private companies or individuals can change the terms of their loans so that it is easier for the debtor to pay back the loan.
    • Climate Crisis:
      • Issue Highlighted:
        • The Vulnerable Twenty Group of Ministers of Finance (V20), representing 58 countries most systematically vulnerable to climate change impacts, highlighted the urgent need to transition to a global financial system that can deliver development-positive climate action for the most vulnerable.
        • It addressed growing concerns about the climate crisis, covering topics such as climate finance, energy security, sustainable supply chains, and workforce readiness for green jobs.
        • Access to timely concessional finance was identified as a major hurdle faced by climate-vulnerable nations, as their fiscal space is under pressure to address climate risks while facing debt distress and high cost of capital.
      • Way Suggested:
        • Accra Marrakech Agenda: The V20 proposed the Accra Marrakech Agenda, to build an international coalition for a fit-for-climate, addressing critical areas such as debt, transforming the international and development finance system, carbon financing, and risk management in a climate-insecure world.
          • The upcoming IMF and WBG annual meeting in October 2023 will be held in Marrakech.
        • The V20 also urged multilateral financial institutions and development agencies at the 2023 Spring Meetings to collaborate towards developing a ‘New Global Financial Pact’ in June 2023.
    • Financial Support to Low Income Countries:
      • The IMF reiterated its role in providing financial support to low-income countries and committed to continuing support towards the Poverty Reduction and Growth Trust (PRGT) so that it is able to continue its support to low-income countries.
        • The IMF provides concessional finance to low-income countries through the PRGT.
        • However, the Covid-19 pandemic, the Russia-Ukraine war and the consequent spike in lending have strained PRGT resources.
    • Digital Solutions to Unlock Human Capital Potential:
      • The IMF also highlighted that it is currently analysing the macroeconomic implications of digital development to shape the policy approach to new public and private digital infrastructure.

    UPSC Civil Services Examination Previous Year Question (PYQ)

    Q1. India’s ranking in the ‘Ease of Doing Business Index’ is sometimes seen in the news. Which of the following has declared that ranking? (2016)

    (a) Organization for Economic Cooperation and Development (OECD)
    (b) World Economic Forum
    (c) World Bank
    (d) World Trade Organization (WTO)

    Ans: C

    Q2. With reference to ‘IFC Masala Bonds’, sometimes seen in the news, which of the statements given below is/ are correct? (2016)

    1. The International Finance Corporation, which offers these bonds, is an arm of the World Bank.
    2. They are the rupee-denominated bonds and are a source of debt financing for the public and private sector.

    Select the correct answer using the code given below:

    (a) 1 only
    (b) 2 only
    (c) Both 1 and 2
    (d) Neither 1 nor 2

    Ans: (c)

    Source: DTE


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    International Relations

    Armenian Genocide

    For Prelims: Genocide, Convention on the Prevention and Punishment of the Crime of Genocide, United Nations General Assembly, Indian Penal Code (IPC), Article 15, Article 21,

    For Mains: Genocide and its repercussion, international measures, Measures adopted by India to combat genocides.

    Why in News?

    April 24, 1915 marks the beginning of what came to be known as the Armenian genocide. It is when the Ottoman Empire (modern-day Turkey) initiated the detainment of Armenian intellectuals and leaders in Constantinople.

    What is Genocide?

    • Origin:
      • The word ‘genocide’ was first coined by Polish lawyer Raphäel Lemkin in 1944 in his book Axis Rule in Occupied Europe.
    • About:
      • As per UN, Genocide is the intentional and systematic destruction of a particular ethnic, racial, religious, or national group.
      • This destruction can occur through a variety of means, including mass killing, forced relocation, and the imposition of harsh living conditions that result in widespread death.
    • Conditions:
      • UN says a crime of genocide includes two main elements:
        • Mental Element: The intent to destroy, in whole or in part, a national, ethnic, racial or religious group.
        • Physical Element: It includes the following five acts, enumerated exhaustively:
          • Killing members of the group
          • Causing serious bodily or mental harm to members of the group
          • Deliberately inflicting on the group conditions of life is calculated to bring about its physical destruction in whole or in part
          • Imposing measures intended to prevent births within the group
          • Forcibly transferring children of the group to another group
      • Also, the members of the attacked group must have been attacked because they are members of the group, and not as individuals, for the crime to qualify as a genocide.
    • Genocide Convention:
      • The Genocide Convention, also known as the Convention on the Prevention and Punishment of the Crime of Genocide, is an international treaty that was adopted by the UNGA on December 9, 1948.
      • The purpose is to prevent and punish the crime of genocide and requires signatory nations to take action to prevent and punish genocide, including by enacting laws that criminalize the crime of genocide and by cooperating with other nations in the investigation and prosecution of individuals suspected of committing genocide.
      • The Convention also establishes the International Court of Justice as the primary judicial body responsible for interpreting and enforcing the Convention.
    • It was the first human rights treaty adopted by the General Assembly of the UN on 9 December 1948.

    What is the Armenian Genocide?

    • Background: Armenians are an ancient people whose traditional homeland by the beginning of the 20th century was divided between the Russian and the Ottoman empires.
      • In the Ottoman Empire, dominated by Muslims, Armenians were a Christian, well-off minority.
      • On account of their religion, they faced discrimination, which they had been protesting and demanding greater say in the government. This had led to resentment and attacks against the community.
    • Role of Young Turks and WW-I: A revolution brought in 1908 by a group called the Young Turks and paved the way for the Committee of Union and Progress (CUP) forming the government which wanted ‘Turkification’ of the empire and was hard on minorities.
      • In August 1914, World War I broke out, and the Ottoman Empire joined forces with Germany and Austria-Hungary against Russia, Great Britain and France.
      • The war brought antipathy towards Armenians to a boil, especially as some Armenians were sympathetic to Russia and even willing to help it in the war.
        • Soon, the Armenians as a whole were seen as a threat.
      • The crackdown of April 14, 1915 on the community began in earnest with the arrest of prominent citizens in Constantinople, many of whom were executed.
        • The government then ordered forcible eviction of Armenians.
      • In spring 1915 the Ottoman government began the deportation of the Armenian population from its northeastern border regions.
    • Recognition as ‘Genocide’: Armenian genocide has been recognized so by 32 countries as of now, including the US, France, Germany, the Armenian genocide.
      • India and UK do not recognize the Armenian Genocide. India’s stand can be attributed to its wider foreign policy decisions and geo-political interests in the region.
      • Turkey does not recognize the Armenion massacre as genocide and has always claimed that there is no proof the deaths were planned and targetted.
    • Current Status of Armenia-Turkey Relations: The modern state of Armenia has in the past sought better ties with Turkey, although the two are now locked in a tussle over the Nagorno-Karabakh region an Armenian-dominated part of Azerbaijan where Turkey supports Azerbaijan.

    What are the Law and Regulations in India for Genocide?

    • India does not have any domestic law on genocide, even though it has ratified the UN Convention on Genocide.
    • Indian Penal Code (IPC):
      • The Indian Penal Code (IPC) provides for the punishment of genocide and related crimes, and sets out the procedures for investigation, prosecution, and punishment.
      • Genocide has been defined as a crime under IPC Section 153B, which criminalizes acts that promote enmity between different groups on grounds of religion, race, place of birth, residence, language, etc. with the intent to cause riots or commit acts of violence.
    • Constitutional Provisions:
      • The Indian Constitution provides protection against discrimination on the basis of religion, race, caste, sex, or place of birth.
        • Article 15 of the Constitution prohibits discrimination on these grounds.
        • Article 21 guarantees the right to life and personal liberty.

    Way Forward

    The prevention and punishment of genocide is a complex issue that requires a multi-faceted approach. Some possible ways forward include:

    • Strengthening legal frameworks: Countries should continue to adopt and enforce laws that criminalize genocide and related crimes. Governments should also ensure that these laws are in line with international legal standards, such as the Genocide Convention.
    • Education and awareness-raising: Education and awareness-raising campaigns can help to promote tolerance and understanding between different groups and reduce the likelihood of discrimination and violence. Governments, civil society organizations, and other stakeholders should work together to promote these initiatives.
    • Early warning systems: The development of early warning systems can help to detect and prevent the escalation of tensions between different groups. These systems can include the monitoring of hate speech, social media platforms, and other indicators of potential violence.
    • International cooperation: International cooperation is essential in the prevention and punishment of genocide. Countries should work together to share information, resources, and expertise in order to prevent and respond to potential instances of genocide.
    • Support for victims: The provision of support and reparations to victims of genocide is essential in promoting healing and reconciliation. Governments and other stakeholders should work together to provide support to victims, including access to justice, reparations, and mental health services.
    • Addressing root causes: Addressing the root causes of discrimination and violence is essential in the prevention of genocide. This can include addressing poverty, inequality, and social exclusion, as well as promoting inclusive governance and democratic institutions.

    Source: IE

    Science & Technology

    LockBit Ransomware

    For Prelims: LockBit Ransomware, Cyber Attack, Cyber-crime, Crypto virus, Cyber Surakshit Bharat, Cyber Swachhta Kendra.

    For Mains: LockBit Ransomware and Protection against it, Instances of Cyber Attacks in India, Increasing threat of cybercrime in India and its impact on national security.

    Why in News?

    Recently, it has been found that LockBit ransomware was found to be targeting Mac devices.

    • Earlier in January 2023, the LockBit gang was reportedly behind a cyber-attack on U.K. postal services, causing international shipping to grind to a halt.
    • A ransomware is a type of malware that hijacks computer data and then demands payment (usually in bitcoins) in order to restore it.

    What is LockBit Ransomware?

    • About:
      • LockBit, formerly known as “ABCD” ransomware, is a type of computer virus that enters someone's computer and encrypts important files so they can't be accessed.
        • The virus first appeared in September 2019 and is called a "crypto virus", because it asks for payment in cryptocurrency to unlock the files.
      • LockBit is usually used to attack companies or organizations that can afford to pay a lot of money to get their files back.
      • The people behind LockBit have a website on the dark web where they recruit members and release information about victims who refuse to pay.
      • LockBit has been used to target companies in many different countries, including the U.S., China, India, Ukraine, and Europe.
    • Modus Operandi:
      • It hides its harmful files by making them look like harmless image files. The people behind LockBit trick people into giving them access to the company's network by pretending to be someone trustworthy.
      • Once they're in, LockBit disables anything that could help the company recover their files and puts a lock on all the files so that they can't be opened without a special key that only the LockBit gang has.
      • Victims are then left with no choice but to contact the LockBit gang and pay up for the data, which the gang may sell on the dark web - whether the ransom is paid or not.
    • LockBit Gang:
      • The LockBit gang is a group of cybercriminals who use a ransomware-as-a-service model to make money.
      • They create custom attacks for people who pay them and then split the ransom payment with their team and affiliates.

    Why is LockBit targeting macOS?

    • LockBit is targeting macOS as a way to expand the scope of their attacks and potentially increase their financial gains.
      • While historically ransomware has mainly targeted Windows, Linux, and VMware ESXi servers, the gang is now testing encryptors for macOS.
    • The current encryptors were not found to be fully operational, but it is believed that the group is actively developing tools to target macOS.
    • The ultimate goal is likely to make more money from their ransomware operation by targeting a wider range of systems.

    What are the Recent Instances of Cyberattacks in India?

    • India has been facing a significant increase in ransomware attacks, with approximately 82% of companies impacted in 2020.
    • Several high-profile attacks have occurred in recent years, including the WannaCry attack in 2017, a data breach at Juspay that affected 35 million customers, including those of Amazon in 2021, and more recently a ransomware attack on AIIMS Delhi in Dec 2022.
      • In 2022, Air India suffered a major cyberattack, compromising 4.5 million customer records, including passport, ticket, and credit card information.

    What are the Present Government Initiatives Related to Cyber Security?

    How to Protect against LockBit Ransomware?

    • Strong Passwords:
      • Account breaches often happen because of weak passwords that are easy for hackers to guess or for algorithm tools to crack. To protect oneself, choose strong passwords that are longer and have different types of characters.
    • Multi-Factor Authentication:
      • To prevent brute force attacks, use additional security measures like biometrics (such as fingerprint or facial recognition) or physical USB key authenticators along with your passwords when accessing your systems.
        • Brute force attacks are a type of cyber-attack where attackers try to guess a password by repeatedly trying different combinations of characters until they find the right one.
    • Reassess Account Permissions:
      • Limiting user permissions to stricter levels is important to reduce security risks. This is especially critical for IT accounts with administrative access and for resources accessed by endpoint users.
      • Ensure that web domains, collaborative platforms, web meeting services, and enterprise databases are all secured.
    • System-wide Backups:
      • To protect against permanent data loss, it's important to create offline backups of your important data.
      • Make sure to periodically create backups to ensure that you have an up-to-date copy of your systems. Consider having multiple backup points and rotating them, so you can select a clean backup in case one becomes infected with malware.

    UPSC Civil Services Examination Previous Year Question (PYQ)

    Prelims:

    Q. The terms ‘WannaCry, Petya and EternalBlue’ sometimes mentioned in the news recently are related to (2018)

    (a) Exoplanets
    (b) Cryptocurrency
    (c) Cyber attacks
    (d) Mini satellites

    Ans: (c)

    Q. In India, under cyber insurance for individuals, which of the following benefits are generally covered, in addition to payment for the loss of funds and other benefits? (2020)

    1. Cost of restoration of the computer system in case of malware disrupting access to one’s computer
    2. Cost of a new computer if some miscreant wilfully damages it, if proved so
    3. Cost of hiring a specialized consultant to minimize the loss in case of cyber extortion
    4. Cost of defence in the Court of Law if any third party files a suit

    Select the correct answer using the code given below:

    (a) 1, 2 and 4 only
    (b) 1, 3 and 4 only
    (c) 2 and 3 only
    (d) 1, 2, 3 and 4

    Ans: (b)

    Q. In India, it is legally mandatory for which of the following to report on cyber security incidents? (2017)

    1. Service providers
    2. Data centres
    3. Body corporate

    Select the correct answer using the code given below:

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

    Ans: (d)

    Mains:

    Q. Keeping in view of India’s internal security, analyse the impact of cross-border cyber-attacks. Also, discuss defensive measures against these sophisticated attacks. (2021)

    Q. Discuss different types of cybercrimes and measures required to be taken to fight the menace. (2020)

    Source: TH

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    Economy

    EU Introduces MiCA for Crypto Regulation

    For Prelims: Crypto Currency, Virtual Digital Assets, Bitcoin

    For Mains: Regulatory challenges in the cryptocurrency market, Cryptocurrency and its impact on the economy, Cryptocurrency and money laundering, India’s approach towards Crypto

    Why in News?

    Recently, the European Parliament has approved the Markets in Crypto Assets (MiCA) regulation, the world’s first comprehensive set of rules that aims to bring largely unregulated cryptocurrency markets under government regulation.

    • The regulation will come into force after formal approval by member states.
    • The European Parliament is the legislative body of the European Union

    What is MiCA?

    • About:
      • MiCA will bring governance practices to crypto firms. By regulating the crypto industry, MiCA can prevent financial sector-like routs and contagions that could affect the wider economy.
        • "Rout" means when people sell cryptocurrency in a panic, causing prices to fall sharply.
        • "Contagion" means the danger of a collapse in one market affecting other markets, financial institutions, and the overall economy.
      • The regulation prescribes different sets of requirements for crypto asset service providers (CASPs) depending on the type of crypto assets.
    • Assets Covered under MiCA:
      • The MiCA legislation will apply to crypto assets, which are broadly defined as “a digital representation of a value or a right that uses cryptography for security and is in the form of a coin or a token or any other digital medium which may be transferred and stored electronically, using distributed ledger technology or similar technology”.
      • This definition implies that it will apply not only to traditional cryptocurrencies like Bitcoin and Ethereum but also to newer ones like stablecoins.
        • MiCA will also establish new rules for three types of stablecoins.
    • Assets Out of MiCA’s Scope:
      • MiCA will not regulate digital assets that would qualify as transferable securities and function like shares or their equivalent and other crypto assets that already qualify as financial instruments under existing regulation.
      • It will also exclude nonfungible tokens (NFTs).
      • MiCA will also not regulate central bank digital currencies issued by the European Central Bank and digital assets issued by national central banks of EU member countries when acting in their capacity as monetary authorities, along with crypto assets-related services offered by them.
    • New Rules under MiCA:
      • Regulation of CASPs:
        • CASPs must be incorporated as a legal entity in the EU.
        • They can get authorized in any one 1mber country and operate across all 27 countries.
        • Regulators such as the European Banking Authority will supervise CASPs.
        • CASPs must demonstrate stability, soundness, and ability to keep user funds safe.
        • CASPs must be able to defend against market abuse and manipulation.
      • White Paper Requirements for Stablecoin Service Providers:
        • Stablecoin service providers must provide a white paper with key information about the crypto product and the main participants in the company, the terms of the offer to the public, the type of blockchain verification mechanism they use, the rights attached to the crypto assets in question, the key risks involved for the investors, and a summary to help potential purchasers make an informed decision regarding their investment.
      • Reserve Requirements for Stablecoin Issuers:
        • Issuers of stablecoins will be required to maintain sufficient reserves corresponding to their value to avoid liquidity crises.
        • Insufficient reserves can have significant implications for users of stablecoins and can result in significant losses.
      • Transaction Limits for Stablecoin Firms (Non-Euro Currencies):
        • Stablecoin firms pegged to non-euro currencies will have to cap their transactions at a daily volume of €200 million ($220 million) in a specified region.
        • The transaction limit is intended to manage the risks associated with stablecoins and their impact on financial stability.
      • Anti-money Laundering Measures for Crypto Companies:
        • Crypto companies must send information about senders and recipients of crypto assets to their local anti-money laundering authority, to prevent money laundering and terror financing activities.
        • Failure to comply with anti-money laundering requirements can have significant legal and reputational implications for crypto companies.
    • Need for Such a Law:
      • About 22% of the global crypto industry is concentrated in central, northern, and western Europe ($1.3 trillion worth of crypto assets); having a comprehensive framework like MiCA will give the EU a competitive edge in its growth compared to the US or UK which lack regulatory clarity.
      • Increasing investments and the size of the crypto industry have led policymakers worldwide to feel the need to bring governance practices in crypto firms to ensure stability.
    • Importance:
      • It will protect consumers against deception and fraud, regaining their trust in the sector that was damaged by the FTX collapse.
      • It will bring compliance to the issuers of crypto-assets and CASPs.

    Where does India Stand in terms of Regulating Cryptocurrency?

    • India is yet to have a comprehensive regulatory framework for crypto assets; however, a draft legislation on the same is reportedly in the works.
    • In 2017, the RBI issued a warning that virtual currencies/cryptocurrencies are not legal tender in India.
      • However, no ban on virtual currencies took place.
    • In 2019, RBI issued that trading, mining, holding, or transferring/use of cryptocurrencies is subject to punishment in India with a financial penalty or/and imprisonment up to 10 years.
    • In 2022, the Government of India clearly mentioned in the Union budget 2022-23 transfer of any virtual currency/cryptocurrency asset will be subject to 30% tax deduction.
      • In July 2022, the RBI recommended a ban on cryptocurrencies citing ‘destabilizing effects’ for the country’s monetary and fiscal health.
      • India launched its Central Bank Digital Currency (CBDC) or e-rupee in December 2022. It is still in its pilot phase.
    • The Govt has also set up a panel to explore the potential use of blockchain technology and the possibility of issuing a Central Bank Digital Currency (CBDC).

    UPSC Civil Services Examination Previous Year Question (PYQ)

    Prelims

    Q. With reference to “Blockchain Technology”, consider the following statements: (2020)

    1. It is a public ledger that everyone can inspect, but which no single user controls.
    2. The structure and design of blockchain is such that all the data in it are about cryptocurrency only.
    3. Applications that depend on basic features of blockchain can be developed without anybody’s permission.

    Which of the statements given above is/are correct?

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

    Ans: (d)

    Mains

    Q. Discuss how emerging technologies and globalization contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (2021)

    Source: TH

    Important Facts For Prelims

    Small Savings Instruments

    Why in News?

    Despite successive hikes in interest rates on several small savings instruments (SSIs) in the last three quarters, the returns on some of such schemes are still significantly lower than what they should have fetched (as per calculations released by the Reserve Bank of India (RBI)).

    What are Small Savings Instruments?

    • About:
      • Small savings instruments help individuals achieve their financial goals over a particular period.
      • They are the major source of household savings in India.
      • Collections from all small savings instruments are credited to the National Small Savings Fund (NSSF).
    • Classification:
      • The small savings instrument basket comprises 12 instruments which can be classified into three categories:
        • Postal Deposits: (comprising savings account, recurring deposits, time deposits of varying maturities and monthly income scheme).
        • Savings Certificates: National Small Savings Certificate (NSC) and Kisan Vikas Patra (KVP).
        • Social Security Schemes: Sukanya Samriddhi Scheme, Public Provident Fund (PPF) and Senior Citizens 'Savings Scheme (SCSS).
    • Rates of Small Saving Instruments:
      • The rates for small saving instruments are announced quarterly.
      • Theoretically, it is based on yields of G-Secs of corresponding maturity but political factors also influence the rate change.
      • The Shyamala Gopinath panel (2010) constituted on the Small Saving (SS) Scheme had suggested a market-linked interest rate system for SS Schemes.
    • Formula for Small Savings Rates:
      • It is used to calculate the interest rates for various SSIs in India and is based on the average quarterly yields on G-Secs in the first 3 of the preceding 4 months.
        • The formula is used to decide how much interest to pay to savers who invest in SS schemes.

    What are the Few Important Small Savings Schemes?

    • Sukanya Samriddhi Account Scheme:
      • Aims to promote the welfare of girl children in India.
      • Parents or legal guardians can open deposits for up to two daughters aged below 10, and in the case of twin girls or three girl children, the scheme allows three accounts to be opened.
      • Minimum initial deposit - Rs 250; Maximum annual ceiling - Rs 150,000.
      • Deposits can be made for a maximum of 15 years; account matures on completion of 21 years from the date of opening or on the marriage of the account holder, whichever is earlier.
    • Senior Citizens’ Savings Scheme:
      • To provide senior citizens in the country a regular source of income after they turn 60 years old.
      • Eligibility -
        • Indian citizens above 60 years of age
        • Retirees in the age of 55-60 years who have opted for a Voluntary Retirement Scheme (VRS) or Superannuation
        • Retired defense personnel between 50-60 years of age.
      • Maturity period of five years, which can be extended for another three years.
      • Minimum deposit - Rs. 1,000; Maximum deposit limit increased to Rs. 30 lakhs in the Union Budget 2023-24.
      • Premature withdrawal is allowed after one year of opening the account.
      • Deposits in SCSS also qualify for deduction under Section 80-C of the Income Tax Act.
    • Monthly Income Scheme:
      • Allows monthly investments by Indian residents above the age of 10 years. 1-3 individuals can hold the account jointly.
      • Has a 5-year lock-in period with premature withdrawal allowed after one year with a penalty.
      • Maximum deposit limit enhanced in Union Budget 23-24 to Rs 9 lakh (for single account) and Rs 15 lakh (for joint account).
        • Any income from the scheme is not subject to TDS or tax deductions.
      • NRIs not eligible to invest in this scheme.
      • Account is transferable from one post office to another.
    • Public Provident Fund (PPF):
      • Encourages individuals to save for their retirement.
      • Has a tenure of 15 years, extendable to an additional 5 years after maturity.
      • Minimum annual investment required to keep a PPF account active - Rs. 500; Maximum investment limit - Rs. 1.5 lakh per FY.
    • Kisan Vikas Patra (KVP):
      • Governed by the Government Savings Certificates Act 1959 (an SSI offered by India Post).
      • Originally launched in 1988 and relaunched in 2014.
      • Available to resident Indians and trusts.
      • Tenure - 124 months, but not fixed.
      • Minimum investment amount - Rs. 1,000; No upper limit.
      • Interest rate reviewed by the government every quarter.
    • Mahlia Samman Savings Certificate:
      • A one-time new small savings scheme for women or girls
      • Available for a two-year period up to March 2025
      • Deposit facility up to Rs 2 lakh (fixed interest rate of 7.5%)
      • Partial withdrawal option

    Source: TH


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    Important Facts For Prelims

    Safe City Project

    Why in News?

    • Delhi is all set to implement the Safe City Project, which aims to provide better security for citizens, particularly women.

    What is the Safe City Project?

    • The Safe City Project is an initiative of the Ministry of Home Affairs, in collaboration with the Ministry of Women and Child Development under the Nirbhaya Fund, aimed at creating a safe, secure, and empowering environment for women and girls in public spaces.
    • The project is being implemented in eight metro cities, including Delhi, Mumbai, Chennai, Kolkata, Hyderabad, Ahmedabad, Lucknow, and Bengaluru.
      • Under the project, CCTV cameras will be installed, along with a command-and-control center with facilities for video analytics, AI, machine learning, and facial recognition.
    • The cost of the projects is shared in a 60:40 ratio between the Central government.

    What is the Scope of the Delhi Project?

    • About:
      • The Delhi project is fully funded by the Central government and will be implemented by the Delhi Police through the Centre for Development of Advanced Computing (C-DAC).
      • RailTel and NEC India have been appointed by C-DAC to install CCTV cameras and connect them to feeders and main servers, respectively.
      • Additionally, 88 Prakhar Vans equipped with mobile data terminals, body-worn cameras, and other features will be deployed across the city.
    • Enhancing Policing and Security through the Project:
      • The Safe City Project in Delhi is an initiative that aims to enhance policing and security in the city using AI-based applications.
        • The project will use AI to assess crowds in real-time, picking up behavioral traits and discrepancies.
        • AI will immediately notify command and control centers in police headquarters, district offices, and police stations in case of deviations that indicate impending crime.
        • The project's goal is to prevent crime by providing real-time information to police officers and enabling them to take timely action.
      • The project is a step forward towards a safer and more secure environment for all.

    Source: TH

    Rapid Fire

    Rapid Fire Current Affairs

    Sea-Based Ballistic Missile Defense Interceptor

    Defence Research and Development Organisation (DRDO) and Indian Navy successfully conducted a maiden flight trial of a sea-based endo-atmospheric interceptor missile off the coast of Odisha in the Bay of Bengal. The purpose of the trial was to engage and neutralize a hostile ballistic missile threat, which would elevate India to the elite club of nations having Naval Ballistic Missile Defence (BMD) capability. Prior to this, DRDO had successfully demonstrated a land-based BMD system with the capability to neutralize ballistic missile threats from opponents. With this successful test, India has achieved self-reliance in developing highly complex network-centric anti-ballistic missile systems, which marks a significant step towards India's strategic defense capabilities. This successful test also highlights India's commitment towards ensuring national security through indigenously developed technologies.

    Read more: Ballistic Missile Defence (BMD)

    National Generic Document Registration System

    The Department of Land Resources (DoLR) (Ministry of Rural Development) has reported that as many as 28 States/UTs in India have adopted the National Generic Document Registration System (NGDRS) for land records. This system allows for eRegistration in these States/UTs, or they have started sharing data with the national portal of NGDRS through User Interface/API. Additionally, the Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhar has been adopted by 26 States/UTs. Furthermore, some States are using ULPIN in the SVAMITVA portal.

    The DoLR is implementing the Digital India Land Records Modernisation Programme (DILRMP) with 100% funding from the Government of India.

    Read more: Digital India Land Record Modernisation Programme

    Farmer Producer Companies

    ITC Limited, one of India’s major private companies, has achieved an extraordinary feat by helping to form 78 farmer-producer companies (FPCs) also known as Farmer Producer Organization.

    FPC is a company that is owned and run by farmers. It helps these farmers by bringing together the crops they grow and selling them as a group, which makes it easier to get better prices for their products. By working together, the farmers can also save money on things like equipment and supplies and share knowledge and expertise to improve their farming methods. This allows them to be more efficient and profitable as a group, instead of trying to compete with larger, more established businesses on their own.

    In helping the formation of FPCs, ITC acted as a Cluster-Based Business Organisation (CBBO), a concept introduced in Union Budget 2019-20 to provide hand-holding support to FPCs and to meet the target of creating 10,000 FPOs by 2024. With the announcement of CBBOs, the formation of FPCs has seen a huge rise, from about 5,000 in 2018 to over 16,000 in 2023, as per data with the Union Ministry of Corporate Affairs.

    Recent analysis finds that this increase has come at a cost – FPCs formed by big companies acting as CBBOs are often unable to act independently in decision-making or be farmer-centric, which defeats the purpose of their creation. The biggest challenge is that CBBOs can squeeze the FPCs for margin, which could result in FPCs becoming a captive market for goods produced or marketed by its CBBO. Furthermore, farmers argue that the real purpose of CBBOs in helping FPCs is to get cheap raw material. They believe that the purpose of FPCs was to help farmers, not big companies, get more money.

    Read more: Farmer Producer Bodies Need Help

    Doctrine of the Basic Structure Turns 50

    The doctrine of the basic structure turns 50 this year and is considered a landmark in India's constitutional history. The Doctrine of Basic Structure refers to a constitutional principle that was established by the Constitutional Bench in the Kesavananda Bharati case of 1973. The bench ruled that Parliament could amend any part of the Constitution as long as it did not alter or amend the basic structure or essential features of the Constitution. While the court did not define the term ‘basic structure’, it listed several principles that form its part. The basic structure doctrine has been interpreted to include the supremacy of the Constitution, the rule of law, independence of the judiciary, the doctrine of separation of powers, sovereign democratic republic, the parliamentary system of government, the principle of free and fair elections, welfare state, etc.

    The significance of the basic structure doctrine lies in limiting political power, the wise exercise of the judicial review process and power, and the last word resting with the Supreme Court. Judicial independence is crucial for the essence of the rule of law, and respect for constitutional conventions and practices is vital to maintain the integrity of the Constitution. The application of the basic structure doctrine can be seen in the SR Bommai case (1994), where the Supreme Court upheld the dismissal of BJP governments by the President, invoking a threat to secularism by these governments.

    Read more: 50 Years of Kesavananda Bharati Judgment


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