From UPSC perspective, the following things are important :
Prelims level: FATF, Mutual Evaluation; Grey and Black Lists
Mains level: Money laundering challenges in India;
Why in the News?
The FATF placed India in the “regular follow-up” category for having an “effective” anti-money laundering and counter-terror financing system but highlighted the need for significant improvements in prosecuting such cases.
Key Highlights of the FATF Mutual Evaluation Report on India:
“Regular Follow-up” Category: India has been placed in the “regular follow-up” category, signifying that its system for combating money laundering and terror financing is effective.
Financial institutions need better risk profiling of customers, and the Ministry of Corporate Affairs (MCA) registry needs improved monitoring for accurate ownership information.
Money Laundering Risks: The primary sources of money laundering in India come from fraud, cyber-enabled fraud, corruption, and drug trafficking.
Terror threats are mainly linked to Islamic State or al-Qaeda groups in Jammu and Kashmir.
Non-Profit Organisations (NPOs): India should strengthen measures to prevent abuse of the NPO sector for terror financing, and enhance outreach to NPOs at risk.
Improvements in Sanctions Framework: India needs to improve its targeted financial sanctions framework to ensure the timely freezing of funds and assets related to terror financing.
Domestic Politically Exposed Persons (PEPs): The report urged India to define domestic PEPs under its anti-money laundering laws and improve identification and risk-based measures related to them.
Delay in prosecution: The report noted delays in prosecution due to review petitions are still pending, which delays the resolution of cases under the PMLA.
Challenges faced by the Indian Government:
Prosecution and Conviction Delays: Despite an increase in investigations, the number of prosecutions and convictions remains low, with significant delays in concluding trials, especially under the PMLA.
Constitutionality Issues: Legal challenges to the constitutionality of the PMLA between 2014-2022 disrupted the momentum in terror financing and money laundering prosecutions.
Risk Profiling of Financial Customers: There is a need for better risk profiling of customers in financial institutions to address money laundering more effectively.
Inaccurate Ownership Information: Ensuring accurate owner information in the Ministry of Corporate Affairs (MCA) registry remains a challenge, especially concerning investments from tax havens.
Non-Profit Organisations: Ensuring that non-profits are not abused for terror financing requires better coordination and focused outreach by authorities.
Lack of Definition for Domestic PEPs: While India has defined foreign PEPs, the absence of a clear definition for domestic PEPs under PMLA creates a gap in the anti-money laundering framework.
Fast-Tracking Trials: The need to fast-track trials in money laundering and terror financing cases is recognized, but progress in addressing this challenge remains slow.
Way Forward:
Strengthen Legal and Institutional Framework: India should establish clear definitions for domestic Politically Exposed Persons (PEPs) under anti-money laundering laws and enhance targeted financial sanctions to ensure timely asset freezing.
Enhance Risk Management and Monitoring: Financial institutions should improve risk profiling and implement stricter Know Your Customer (KYC) processes, while the Ministry of Corporate Affairs should ensure accurate ownership data, especially for investments from tax havens.
Mains PYQ:
Q Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (UPSC IAS/2021)
From UPSC perspective, the following things are important :
Mains level: Implications of Global Markets on India; Implication of interest rate;
Why in the News?
The United States Federal Reserve, responsible for the country’s monetary policy, announced on Wednesday that it will lower its key interest rate, called the Federal Funds Rate, by 0.5%, or 50 basis points.
Why did the Fed cut interest rates?
The Federal Reserve cut the benchmark interest rate by 50 basis points to address rising unemployment concerns while inflation was stabilizing.
After a series of aggressive rate hikes to counter inflation that surged due to post-COVID recovery and the Russia-Ukraine war, inflation began to moderate, nearing the Fed’s target of 2%.
Rising unemployment data signaled that the restrictive monetary policy might harm the labor market, prompting the Fed to act.
Will the US economy achieve a soft landing?
Optimistic Projections: Despite earlier predictions that high inflation would lead to a recession, the Fed’s strategy may succeed in achieving a soft landing, reducing inflation without crashing the economy.
GDP Growth: The Summary of Economic Projections (SEP) estimates GDP growth to remain around 2% for the next few years, indicating a stable economy.
Unemployment: While the unemployment rate has risen slightly to 4.4%, it remains manageable, with expectations of improvement.
Risks: Potential policy shifts, especially related to the upcoming presidential election, could disrupt the economic outlook, particularly if trade tariffs are imposed.
How will India be affected?
Increased Foreign Investments: Lower US interest rates could encourage foreign investors to borrow in the US and invest in India through stocks, bonds, or foreign direct investment (FDI), benefiting capital inflow.
Rupee Strengthening: With falling US interest rates, the US dollar may weaken against the Indian rupee, potentially strengthening the rupee. This would negatively affect Indian exporters but benefit importers.
RBI’s Interest Rate Decisions: While the Fed’s rate cuts influence global markets, India’s central bank, the RBI, may not directly follow suit due to differing inflation targets and mandates. The RBI prioritizes inflation control and GDP growth over unemployment figures.
Way forward:
Encourage Capital Inflows: India should take advantage of lower US interest rates by attracting foreign investments through improved ease of doing business, fostering growth in key sectors like infrastructure, technology, and manufacturing.
Maintain Monetary Stability: The RBI should carefully assess global trends but prioritize domestic conditions when adjusting interest rates, focusing on inflation control, financial stability, and sustained GDP growth.
Mains PYQ:
Q Do you agree with the view that steady GDP growth and low inflation have left the Indian economy in good shape? Give reasons in support of your arguments. (UPSC IAS/2016)
From UPSC perspective, the following things are important :
Prelims level: White Revolution 2.0
Why in the News?
The Ministry of Cooperation unveiled White Revolution 2.0, focusing on empowering women farmers and creating job opportunities in the dairy cooperative sector.
What is White Revolution 2.0?
Details
Objective
Transforming India’s dairy sector by empowering women farmers, increasing milk production, and modernizing dairy infrastructure.
Target
Increase procurement from the current 660 lakh litres per day to 1,000 lakh litres per day.
Funding
• Initial funding of ₹40,000 per Multi-Purpose Primary Agricultural Credit Society (PACS) by National Dairy Development Board.
• Total outlay of ₹70,125 crore with full government budgetary support.
Provisions and Features
1. Women Empowerment: Focus on empowering women in the dairy sector and strengthening women’s cooperatives.
2. Increase in Milk Procurement: Aims to raise procurement by 50% over the next five years.
3. Cooperative Infrastructure: 100,000 new and existing cooperative societies (district cooperative societies and Primary Agricultural Credit Societies) to be set up or enhanced.
4. RuPay Kisan Credit Cards: Nationwide rollout for dairy farmers, with micro-ATMs at cooperative societies.
5. Computerisation of Primary Agricultural Credit Societies: 67,930 Primary Agricultural Credit Societies will be computerised for better management.
Significance
1. Women Empowerment: Creates leadership opportunities for women in dairy, promoting gender equality.
2. Boost to Rural Economy: Strengthening cooperatives and milk procurement will improve rural livelihoods.
3. Improved Infrastructure: Modern technology, micro-ATMs, and computerisation will increase efficiency.
4. Job Creation: Expanding cooperatives and modern practices will generate jobs for 130 million farmers.
5. Malnutrition Reduction: Enhances dairy quality to combat malnutrition.
6. Cooperative Modernisation: Focus on Artificial Intelligence and advanced technologies.
7. Dairy Exports Boost: Improved production and quality to enhance India’s dairy exports.
PYQ:
[2017] Explain various types of revolutions, took place in Agriculture after Independence in India. How these revolutions have helped in poverty alleviation and food security in India?
This year, Kerala faced a sudden surge in Amoebic Meningoencephalitis cases, caused by free-living amoebae (FLA) found in freshwater ponds, lakes, and rivers.
Kerala also saw a diverse range of amoebic infections, caused by Naegleria fowleri, Vermamoeba vermiforis, and Acanthamoeba.
What is Primary Amoebic Meningoencephalitis (PAM)?
PAM is caused by the Naegleria fowleri, often referred to as the “brain-eating amoeba“. It destroys brain tissue, causing severe swelling and is fatal in most cases.
An amoeba is a type of cell or unicellular organism with the ability to alter its shape, primarily by extending and retracting pseudopods.
Higher temperatures of up to 115°F (46°C) are conducive to its growth and it can survive for short periods in warm environments.
The amoeba enters the body through the nose, typically during activities like swimming, and travels to the brain, causing severe damage.
According to the US Centers for Disease Control and Prevention (CDC), most people with PAM die within 1 to 18 days after symptoms begin. It usually leads to coma and death after 5 days.
Diagnosis and Treatment:
Currently, there are no established effective treatments for PAM.
Diagnosis involves PCR tests of cerebrospinal fluid, though detection can be challenging due to the rarity of PAM.
Treatment followsCDC guidelines, including miltefosine, Azithromycin, and Amphotericin B, with miltefosine recently procured by the State Health Department from Germany.
Medical interventions typically involve a combination of drugs, including amphotericin B, azithromycin, fluconazole, rifampin, miltefosine, and dexamethasone.
From UPSC perspective, the following things are important :
Prelims level: Important sites of Indus valley Civilization
Why in the News?
It has been 100 years since the discovery of the Harappan Civilization, announced by John Marshall on September 20, 1924.
Harappa: Remains of a Civilization
The Harappan Civilization, also known as the Indus Valley Civilization, flourished between 2600 BCE and 1900 BCE, with earlier settlements dating back to 3200 BCE.
The origins of this civilisation are traced back to Mehrgarh in Balochistan, which dates to 7000 BCE.
It is considered one of the three earliest civilizations, alongside Egypt and Mesopotamia.
The civilization covered over 1.5 million sq. km, stretching across modern-day India, Pakistan, and Afghanistan.
Remains of the civilization include:
Well-planned cities with a grid layout, intersecting streets, and fortified structures.
Advanced drainage systems with underground sewers and covered drains, showing a strong emphasis on hygiene.
Granaries, warehouses, and dockyards, indicating the presence of structured trade and food storage mechanisms.
The discovery of seals made of steatite, often engraved with animals and an un-deciphered script, suggesting a sophisticated administrative system.
Craftsmanship in pottery, bead-making, terracotta figurines, metal artefacts, and weaving.
Water management systems such as reservoirs, wells, and baths, indicating an advanced understanding of hydraulic engineering.
The Discoverers:
Two ASI archaeologists were credited with the discovery:
Daya Ram Sahni excavated Harappa in 1921-22, discovering seals, pottery, and beads.
Rakhal Das Banerji began excavating Mohenjo-daro in 1922, finding similar items such as seals and copper objects.
John Marshall noticed the similarity between the objects found at Harappa and Mohenjo-daro, despite the sites being 640 km apart.
About the Mohenjo-daro Site:
Mohenjo-daro is one of the largest cities of the Harappan Civilization, located in the Sindh province of Pakistan, discovered in 1922 by Rakhal Das Banerji.
The city represents one of the finest examples of ancient urban planning:
Great Bath: A large, centrally located structure thought to be used for ritual bathing or religious ceremonies. It is considered one of the earliest public water tanks in history.
Granaries: Massive storage facilities near the citadel suggest an organized system of storing food for the community.
Citadel and Lower Town: The city was divided into a raised citadel for the ruling elite and a lower town for common people. Both areas had well-planned streets and residential complexes.
Drainage Systems: Mohenjo-daro featured covered drainage systems with individual toilets connected to the drainage network, showcasing an impressive public sanitation system.
Residential Buildings: Homes were built from uniform mud bricks, with courtyards and bathrooms, and were often multi-storied. The use of standardised brick sizes (ratio 1:2:4) and cubic weights showed their high degree of organisation.
Artefacts found at Mohenjo-daro include:
Seals with animal motifs and the un-deciphered Harappan script, believed to have been used for administrative or trade purposes.
Pottery and tools made of bronze and copper.
Terracotta figurines, jewellery, and toys that reflect a highly developed artistic culture.
Weights and measures based on a uniform standard, indicating the use of a standardized economic system.
The city’s streets were aligned north-south and east-west, cutting at right angles, allowing for efficient transportation, including bullock carts.
Mohenjo-daro is believed to have had trade links with Mesopotamia, as suggested by artefacts with Mesopotamian connections.
PYQ:
[2013] Which of the following characterizes/characterize the people of Indus Valley Civilization?
1. They possessed great palaces and temples.
2. They worshipped both male and female deities.
3. They employed horse-drawn chariots in warfare.
Select the correct statement/statements using the codes given below.
From UPSC perspective, the following things are important :
Prelims level: Mini-Moon, Asteroid 2024 PT5,
Why in the News?
In a rare celestial event, Earth’s gravitational field will witness a small asteroid, 2024 PT5, creating a “mini-moon” for two months.
What is Mini-Moon?
A mini-moon is a small asteroid temporarily captured by Earth’s gravitational field, orbiting the planet for a short period before escaping back into space.
Unlike Earth’s permanent moon, mini-moons only stay for a few monthsto a few years before being ejected from orbit.
Mini-moons are a rare occurrence because most asteroids either pass by Earth or burn up in the atmosphere rather than being captured by Earth’s gravity.
Mini-moons are usually small, often just a few meters in diameter.
For example, 2024 PT5 is only about 33 feet (10 meters) in length.
They are hard to detect and are usually discovered using advanced telescopicsurveys like NASA’s Asteroid Terrestrial-impact Last Alert System (ATLAS).
Significance of Mini-Moons
Mini-moons offer scientists a unique opportunity to study near-Earth objects, enhancing our understanding of asteroids’ behavior and composition.
Mini-moons could contain valuable minerals or water, making them potential targets for future space missions to extract resources.
Studying mini-moons helps scientists learn more about Earth’s gravitational influence and how it interacts with space objects.
PYQ:
[2011] What is the difference between asteroids and comets?
Asteroids are small rocky planetoids, while comets are formed of frozen gases held together by rocky and metallic material.
Asteroids are found mostly between the orbits of Jupiter and Mars, while comets are found mostly between Venus and Mercury.
Comets show a perceptible glowing tail, while asteroids do not.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 3 only
(d) 1, 2 and 3
From UPSC perspective, the following things are important :
Prelims level: National War Memorial, Abdul Hameed (PVC)
Why in the News?
A poem on National War Memorial and a chapter about Veer Abdul Hameed (PVC) introduced by the Ministries of Defence and Education has been included in the NCERT Class VI curriculum.
About National War Memorial
The National War Memorial was unveiled on 25th February 2019 to honor Indian soldiers who sacrificed their lives in conflicts with Pakistan, China, 1961 Goa war and Operation Pawan.
The monument is designed in a C-hexagonlayout, with names of the fallen soldiers inscribed on its walls.
It was designed by Yogesh Chandrasan of WeBe Design Lab.
Key features include the Amar Chakra (Circle of Immortality) with the ‘Eternal Flame’ symbolizing the nation’s commitment to remembering the soldiers.
The Veerta Chakra showcases six bronze murals depicting acts of bravery.
The Rakshak Chakra symbolizes protection with trees representing troops safeguarding the nation.
Tyag Chakra (Circle of Sacrifice) features concentric granite walls honoring the soldiers who have died since Independence.
The memorial also features busts of 21 soldiers who have received the Param Vir Chakra, India’s highest gallantry award.
Who was Veer Abdul Hameed?
Abdul Hamid was a soldier in the 4th Grenadiers of the Indian Army.
He fought in the Battle of Asal Uttar during the 1965 India-Pakistan war, which took place near the India-Pakistan border in Punjab.
On 10th September 1965, he destroyed 3 Pakistani tanks and damaged a 4th near Chima village. He was killed during the battle.
For his exceptional bravery, he was posthumously awarded the Param Vir Chakra, India’s highest military honour.
A war memorial now stands at the site of his death, featuring a captured PakistaniPatton tank as a tribute to his courage.
