Why in news?
The Economic Survey-2020-21 highlights the issue of the adverse rating given to emerging economies by global credit rating agencies.

What are Credit Rating Agencies?
• A credit rating agency (CRA) is a company that assigns credit ratings, which rate a debtor’s ability to pay back debt by making timely principal and interest payments and the likelihood of default.
Hence, statement 1 is correct.
• There are six credit rating agencies registered under SEBI namely, CRISIL, ICRA, CARE, SMERA, Fitch India and Brickwork Ratings.
Hence, statement 2 is incorrect and statement 3 is correct.
• CRAs were set up to provide independent evidence and research-based opinion on the ability and willingness of the issuer to meet debt service obligations, quintessentially attaching a probability of default to a specific instrument.

Why in news?
The central government’s afforestation scheme, Green India Mission (GIM), was able to only achieve 2.8 per cent of its plantation target, according to the Economic Survey 2021.

Green India Mission
• GIM is one of the eight Missions outlined under India’s action plan for addressing the challenge of climate change -the National Action Plan on Climate Change (NAPCC).
Hence, statement 1 is correct.
• Launched in February 2014, it is aimed at protecting; restoring and enhancing India’s diminishing forest cover and responding to climate change by a combination of adaptation and mitigation measures.
• The mission has the broad objective of both increasing the forest and tree cover by 5 million ha, as well as increasing the quality of the existing forest and tree cover in 10 years.
Hence, statement 2 is incorrect.
• The Mission proposes a holistic view of greening and focuses not on carbon sequestration targets alone, but also, on multiple ecosystem services, especially, biodiversity, water, biomass etc., along with provisioning services like fuel, fodder, timber and non-timber forest produces.
• It will also increase options of forest-based livelihood of households living in the fringe of those landscapes where the Mission is implemented.

Why in news?
PM will address the 125th-anniversary celebrations of ‘Prabuddha Bharata’, a monthly journal of the Ramakrishna Order, started by Swami Vivekananda in 1896.

Prabuddha Bharata
• The journal ‘Prabuddha Bharata’ has been an important medium for spreading the message of India’s ancient spiritual wisdom.
• It is India’s longest-running English language journal.
• Its publication was started from Chennai (erstwhile Madras), where it continued to be published for two years, after which it was published from Almora.
• Later, in April 1899, the place of publication of the Journal was shifted to Advaita Ashrama and it has been continuously published from there since then.
• Some of the greatest personalities have left their imprint on the pages of ‘Prabuddha Bharata’ through their writings on Indian culture, spirituality, philosophy, history, psychology, art, and other social issues.
• Luminaries like Netaji SC Bose, Bal Gangadhar Tilak, Sister Nivedita, Sri Aurobindo, Former President Sarvepalli Radhakrishnan, among others, have contributed to the Journal over the years.

Why in news?
Myanmar’s military staged a coup detaining de facto leader Aung San Suu Kyi and declaring it had taken control of the country for one year under a state of emergency.

Myanmar is bordered by China to the north and northeast, Laos to the east, Thailand to the southeast, the Andaman Sea and Bay of Bengal to the south and southwest, Bangladesh to the west, and India to the northwest.

Why in news?
Recently, there was an article that dealt with the issue of checking the misuse of monopoly power by the Big Tech while encouraging their positive externalities.

What is positive externality
• A positive externality exists if the production and consumption of a good or service benefits a third party not directly involved in the market transaction.
• For example, education directly benefits the individual and also provides benefits to society as a whole through the provision of more informed and productive citizens.

Why in news?
Space scientists from the University of Sussex have found a new way to know more about dark matter. They have narrowed down the range of masses within which particles that could make up dark matter may lie in.

What is Dark Matter?
• Dark matter is composed of particles that do not absorb, reflect, or emit light, so they cannot be detected by observing electromagnetic radiation.
• Dark matter is a form of matter thought to account for approximately 85% of the matter in the universe and about a quarter of its total mass-energy density or about 2.241×10−27 kg/m3.

Why in news?
The Mumbai police have started a drive titled ‘Top 25’ aimed at keeping under check history-sheeters and those they believe could create trouble.

What is the ‘Top 25’ drive of the Mumbai police?
• The Mumbai police commissioner has asked all police stations in the city to make a list of the “top 25” criminals and ask them to sign a bond of good behavior failing which they would have to pay a fine.
• The aim is to rein in criminal elements and those the police believe could create a law and order problem in the city.
• While this practices that is termed “chapter proceedings” has been followed in the past, the amount a person would usually forfeit was around Rs 10,000 – Rs 15,000.
• Now, the amount has been raised up to Rs 50 lakh.

Why in news?
The Framework for Strategic Partnership between the International Energy Agency (IEA) members and India was signed recently to strengthen mutual trust and cooperation & enhance global energy security, stability and sustainability.

International Energy Agency
• The IEA is a Paris-based autonomous intergovernmental organization established in the framework of the Organisation for Economic Co-operation and Development (OECD) in 1974 in the wake of the 1973 oil crisis.
Hence, statement 1 is incorrect.
• It was initially dedicated to responding to physical disruptions in the supply of oil, as well as serving as an information source on statistics about the international oil market and other energy sectors.
• At the end of July 2009, IEA member countries held a combined stockpile of almost 4.3 billion barrels of oil.
• They are required to maintain total oil stock levels equivalent to at least 90 days of the previous year’s net imports.
• The IEA acts as a policy adviser to its member states but also works with non-member countries, especially China, India, and Russia.
Hence, statement 2 is incorrect.
• The Agency’s mandate has broadened to focus on the “3Es” of effectual energy policy: energy security, economic development, and environmental protection.
Hence, statement 3 is correct.

Why in news?
Finance Minister is all set to present the Union Budget 2021 on February 1st with all eyeing on off-budget borrowings to reduce Fiscal Deficit.

What are off-budget borrowings?
• Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution that borrows on the directions of the central government.
Hence, statement 1 is correct.
• Such borrowings are used to fulfill the government’s expenditure needs.
Hence, statement 2 is correct.
• Such borrowings are a way for the Centre to finance its expenditures while keeping the debt off the books — so that it is not counted in the calculation of fiscal deficit.
• But since the liability of the loan is not formally on the Centre, the loan is not included in the national fiscal deficit. This helps keep the country’s fiscal deficit within acceptable limits.
Hence, statement 3 is correct.
• As a result, a CAG report of 2019 pointed out that this route of financing puts major sources of funds outside the control of Parliament.

Why in news?
The ‘Inequality Virus Report’ was recently released on the opening day of the World Economic Forum in Davos.

About the report
• The Inequality Virus Report was released by Oxfam.
• It inquired into different forms of inequities, including educational, gender and health during the pandemic.

Highlights of the report
‘Rise’ in wealth
• Indian billionaires increased their wealth by 35% during the lockdown to ₹ 3 trillion, ranking India after the U.S., China, Germany, Russia and France.
• The wealth of just the top 11 billionaires during the pandemic could easily sustain the MGNREGS or the Health Ministry for the next 10 years, stated the report.
• A person (no citation needed!) who emerged as the richest man in India and Asia, earned ₹90 crores an hour during the pandemic when around 24% of the people in the country were earning under ₹ 3,000 a month during the lockdown.
• The increase in his wealth alone could keep 40 crores, informal workers, out of poverty for at least five months, said the report.

Why in news?
The Supreme Court has decided to examine a petition seeking the framing of guidelines outlining the broad regulatory paradigm within which the right to free speech of broadcasters and electronic media can be judicially regulated.

What is Article 19(2)?
• This article authorizes the government to impose, by law, reasonable restrictions upon the freedom of speech and expression “in the interests of… public order.”
• To understand the Supreme Court’s public order jurisprudence, it is important to break down the sub-clause into its component parts and focus upon their separate meanings.
• Specifically, three terms are important: “reasonable restrictions”, “in the interests of”, and “public order”.
• Clause (2) enables the legislature to impose certain restrictions on free speech under the following heads:
Security of the State
1. Friendly relations with foreign states
2. Public order
3. Decency and morality
4. Contempt of court
5. Defamation
6. Incitement to an offense and
7. Sovereignty and integrity of India
• Reasonable restrictions on these grounds can be imposed only by a duly enacted law and not by executive action.

Why in news?
Seeking urgent reform of the United Nations Security Council (UNSC), India has highlighted the failure of the Intergovernmental Negotiations (IGN) since 13 years of its establishment.

What is IGN?
• The Intergovernmental Negotiations framework or IGN is a group of nation-states working within the United Nations to further reform of the UNSC.
Hence, statement 1 is incorrect.
• The IGN is composed of several different international organizations, namely:
1. African Union (55 member states)
2. G4 nations (Brazil, Germany, India and Japan)
Hence, statement 2 is correct.
3. Uniting for Consensus Group (UfC), also known as the “Coffee Club” (it aims to counter the bids for permanent seats proposed by G4 nations, includes Pakistan, Turkey, Canada, Spain and Italy)
4. L69 Group of Developing Countries ( it includes developing countries from Africa, Latin America and the Caribbean, Asia and the Pacific)
5. Arab League (six members: Egypt, Iraq, Jordan, Lebanon, Saudi Arabia, and Syria) and
6. Caribbean Community ( a group of 15 member countries called CARICOM)

Why in news?
Data privacy can take the form of non-price competition and abuse of dominance can lower privacy protection, a study by the Competition Commission of India (CCI) has said.

Competition Commission of India (CCI)
• Competition Commission of India (CCI) is a statutory body of the Government of India responsible for enforcing the Competition Act, 2002.

Composition of CCI
• The Commission consists of one Chairperson and six Members as per the Competition Act who shall be appointed by the Central Government.
• The commission is a quasi-judicial body which gives opinions to statutory authorities and also deals with other cases. The Chairperson and other Members shall be whole-time Members.
• Eligibility of members: The Chairperson and every other Member shall be a person of ability, integrity and standing and who, has been, or is qualified to be a judge of a High Court, or, has special knowledge of, and professional experience of not less than fifteen years in international trade, economics, business, commerce, law, finance, accountancy, management, industry, public affairs, administration or in any other matter which, in the opinion of the Central Government, may be useful to the Commission.

Why in news?
The Supreme Court has asked the Home and Law Ministries to explain the nearly three-year-long lapse in making appointments to the Law Commission.

What is the Law Commission?
• It is an executive body established by an order of the Government of India. The first law commission of independent India was established post Independence in 1955.
Hence, statement 1 is incorrect.
• Tenure: 3 Years.
• Function: Advisory body to the Ministry of Law and Justice for “Legal Reforms in India”.
• Recommendations: NOT binding.
Hence, statement 2 is correct.
• First Law Commission was established during the British Raj in 1834 by the Charter Act of 1833.
Hence, statement 3 is correct.
• Chairman: Macaulay; It recommended for the Codifications of the IPC, CrPC etc.

Why in news?
India has unveiled a new draft ‘Arctic’ policy that and is committed to expanding scientific research, “sustainable tourism” and mineral oil and gas exploration in the Arctic region.

Five Arctic littoral states — Canada, Denmark (Greenland), Norway, Russia and the USA (Alaska) — and three other Arctic nations — Finland, Sweden and Iceland — form the Arctic Council (estd. 1996).

Why in news?
The Reserve Bank of India (RBI) has suggested a tougher regulatory framework for the non-banking finance companies’ (NBFC) sector to prevent the recurrence of any systemic risk to the country’s financial system.

What are NBFCs?
• Nonbank financial companies (NBFCs) are financial institutions that offer various banking services but do not have a banking license.
Hence, statement 1 is correct.
• An NBFC in India is a company registered under the Companies Act, 1956 engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by a government or local authority, or other marketable securities.
• A non-banking institution that is a company and has principal business of receiving deposits under any scheme or arrangement in one lump sum or in installments is also an NBFC.

What is the difference between banks & NBFCs?
NBFCs lend and make investments and hence their activities are akin to that of banks; however, there are a few differences as given below:
• NBFC cannot accept demand deposits.
• NBFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself.
Hence, statement 2 is incorrect.
• The deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in the case of banks.
Hence, statement 3 is incorrect.

Why in news?
A group of Indian scientists have found a way to improve crops by reducing wastage of nitrogen fertilizers applied to them.

Nitrogen Pollution: the reason behind
• Agriculture leads to 70 per cent of nitrous oxide emissions in India.
• Of this, 77 per cent is contributed by fertilizers, mostly urea, according to the Indian Nitrogen Assessment published in 2017.
• This greenhouse gas (GHG) is 300 times more potent than carbon dioxide.
Hence, statement 1 is correct.
• It has replaced methane as the second-largest component of GHG emissions from Indian agriculture in the past 15 years.
Hence, statement 2 is incorrect.

Why in news?
A large scale all-services exercise ‘Exercise Kavach’ will be conducted next week under the aegis of the Andaman and Nicobar Command (ANC), the only Joint Forces Command of the country.

Exercise Kavach
• The tri-services exercise aims to fine-tune joint war-fighting capabilities and SOPs towards enhancing operational synergy in the Andaman Sea and Bay of Bengal.
• This exercise would involve assets of Indian Army, Indian Navy, Indian Air Force and Indian Coast Guard.
• The exercise involves synergized application of maritime surveillance assets, coordinated air and maritime strikes, air defence, submarine and landing operations.

1. Force 18: India and ASEAN+
2. Sampriti: India and Bangladesh
3. Khanjar: India and Kyrgyzstan
4. Ekuverin: India and Maldives

Why in news?
Business models of digital companies challenge the conventional basis of taxation in which the fixed place of business formed the basis. Digital Service Tax could provide a basis to deal with the challenge.

Equalisation levy and issues with it
• Equalisation levy seeks to tax payments made for online advertising services to a non-resident business by residents in India.
Hence, statement 1 is correct.
• India is amongst the first to have implemented such levy.
Hence, statement 2 is incorrect.
• It is predominantly applicable to US companies since the market for digital services is dominated by US-based firms.
• Any company that has a permanent residence in India is excluded since it is already subject to tax in India.
• In March 2020, India expanded the scope of the existing equalisation levy to a range of digital services that includes e-commerce platforms.
• Such levy can result in over-taxation since the company will not be able to claim any credit for tax paid on Indian sales.
• Such an approach is often viewed as contrary to the ethos of international agreements.

Why in news?
The Supreme Court, in a majority view (4:1), dismissed a series of petitions seeking a review of its 2018 judgment upholding the Lok Sabha Speaker’s certification of Aadhaar law as a Money Bill and its subsequent passage in Parliament.

Money Bill
• A Bill is said to be a Money Bill if it only contains provisions related to taxation, borrowing of money by the government, expenditure from or receipt to the Consolidated Fund of India.
Hence, statement 1 is correct.
• Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills.
• A Money Bill may only be introduced in Lok Sabha, on the recommendation of the President as per Article 110 of the Constitution.
Hence, statement 2 is correct.
• Then, it is transmitted to the Rajya Sabha for its recommendations. Following this, it may be sent to the Rajya Sabha for its recommendations, which Lok Sabha may reject if it chooses to.
• If such recommendations are not given within 14 days, it will be deemed to be passed by Parliament.

How is a Money Bill different from a financial bill?
• While all Money Bills are Financial Bills, all Financial Bills are not Money Bills.
Hence, statement 3 is incorrect.
• For example, the Finance Bill which only contains provisions related to tax proposals would be a Money Bill.
• However, a Bill that contains some provisions related to taxation or expenditure, but also covers other matters would be considered as a Financial Bill.