AIR Summary and Sansad TV
June 1st Week
The Antarctic Treaty
In news
India successfully concluded hosting of the 46th Antarctic Treaty Consultative Meeting (ATCM- 46).
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The Antarctic Treaty:
- The Antarctic Treaty was signed in Washington on December 1, 1959, by twelve countries that were involved in the International Geophysical Year (IGY) of 1957-58.
- It started to work in 1961 and more countries have joined since
- Now, there are 57 countries that are Parties to the
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Context: India successfully concluded hosting of the 46th Antarctic Treaty Consultative Meeting (ATCM-46) and the 26th Committee on Environmental Protection (CEP-26) fin Kochi, Kerala.
The ATCM-46 was held with the overarching theme of Vasudhaiva Kutumbakam.This resonates deeply with the Antarctic Treaty System, which promotes peace, scientific cooperation, and the preservation of Antarctica for mankind.
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Committee on Environmental Protection:
- The CEP, established under the Madrid Protocol in
- It provides guidance to the ATCM on environmental protection and conservation efforts in
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Key provisions of the Atlantic Treaty:
1.Demilitarization
- Purpose: The treaty designates Antarctica as a zone of peace and prohibits military activities, including nuclear explosions and the disposal of radioactive
- Significance: Ensures that Antarctica is used only for peaceful purposes, promoting scientific research and environmental
2. Freedom of Scientific Research
- Guarantee: Facilitates scientific investigation and cooperation among nations without territorial claims in
- Scope: Allows scientists from any country to conduct research and share their findings openly and collaboratively.
3. Environmental Protection
- Conservation Measures: Includes measures to protect the Antarctic environment and its dependent and associated
- Regulations: Addresses waste disposal, wildlife conservation, and ecosystem management to minimize human impact on the fragile Antarctic
4. Consultative Meetings
- ATCM: The Antarctic Treaty Consultative Meeting (ATCM) is held annually to discuss and make decisions on issues related to the
- Decision-Making: Consensus-based decision-making ensures that all parties have a voice in shaping policies and regulations for
5. Protocol on Environmental Protection
- Madrid Protocol: Adopted in 1991, it strengthens environmental protections in Antarctica, including guidelines on waste management, wildlife conservation, and protected
- Adherence: Parties commit to strict adherence to environmental principles to preserve Antarctica's unique ecological and scientific
India’s association with the treaty:
- India has been a Consultative Party to the Antarctic Treaty since
- It participates in the decision-making process along with the other 28 Consultative Parties to the Antarctic Treaty to
India's Antarctic Research Efforts:
India's pioneering efforts in Antarctic research, overseen by the National Centre for Polar and Ocean Research (NCPOR), have been instrumental since 1981.
Establishment of Research Stations:
Dakshin Gangotri (1983)
- India's first Antarctic research station.
- Initiated logistical operations and laid groundwork for scientific
Maitri (1989)
- Located in Schirmacher
- Supports year-round scientific research despite harsh Antarctic
Bharati (2012)
- Positioned 3000 km east of
- Offers advanced facilities for safe and efficient research
Scientific Expeditions
- Conducted annually since 1981 under NCPOR.
- Covers disciplines such as glaciology, oceanography, and biodiversity
- Aims to enhance global understanding of Antarctic ecosystems and climate
Research Vessel - Sagar Nidhi
- Commissioned in
- Designed to navigate Antarctic waters and handle ice conditions up to 40 cm
- Supports oceanographic research and logistical
Legislative Commitment and Organizational Framework
- Antarctic Act (2022)
- Reinforces India's commitment to Antarctic Treaty
- Promotes peaceful scientific cooperation and environmental
National Centre for Polar and Ocean Research (NCPOR)
- Established in 1998 under MoES, Government of
- Coordinates and executes polar and Southern Ocean research
- Headquartered in Goa, facilitates strategic planning and scientific advancements.
Citations:
Record UPI Transactions
In news
India recorded about 131 billion Unified Payments Interface (UPI) transactions with a total value of Rs 200 trillion in FY24.
Unified Payments Interface (UPI):
- Unified Payments Interface (UPI) is an instant real-time payment system
- It is developed by National Payments Corporation of India (NPCI).
- It facilitates inter-bank peer-to-peer (P2P) and person-to-merchant (P2M) transactions.
- The system powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood.
- NPCI launched Unified Payments Interface (UPI) with member banks in 2016.
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National Payments Corporation of India (NPCI):
- Establishment: NPCI was established in 2008 by the Reserve Bank of India (RBI) and the Indian Banks' Association (IBA) under the Payment and Settlement Systems Act, 2007.
- Legal Structure: Incorporated as a "Not for Profit" Company under Section 8 of the Companies Act 2013.
Products Offered by NPCI:
1. Unified Payments Interface (UPI):
- Description: Real-time payment system allowing instant fund transfers between bank accounts via mobile phones.
- Utility: Facilitates peer-to-peer payments, bill payments, and merchant transactions with ease and convenience.
2. Immediate Payment Service (IMPS)
- Description: Facilitates instant interbank electronic fund transfers 24x7 through various channels.
- Utility: Used for person-to-person transfers, remittances, and online payments with immediate processing.
3. Bharat Bill Payment System (BBPS)
- Description: Centralized bill payment platform offering interoperable and accessible services for consumers.
- Utility: Allows consumers to pay bills conveniently for services like electricity, water, gas, and telecom.
4. National Electronic Funds Transfer (NEFT)
- Description: Electronic fund transfer system enabling one-to-one funds transfer between bank accounts.
- Utility: Used for various transactions including salary credits, small investments, and recurring payments.
5. RuPay Card Network
- Description: India's domestic card network facilitating electronic payments through debit, credit, and prepaid cards.
- Utility: Promotes financial inclusion by providing affordable banking solutions to all segments of society.
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Features of UPI Service:
- Immediate money transfer through mobile device round the clock 24*7 and 365 days.
- Single mobile application for accessing different bank accounts.
- Single Click 2 Factor Authentication – Aligned with the Regulatory guidelines, yet provides for a very strong feature of seamless single click payment.
- Virtual address of the customer for Pull & Push provides for incremental security with the customer not required to enter the details such as Card no, Account number; IFSC etc.
- Merchant Payment with Single Application or In-App Payments.
- Utility Bill Payments, Over the Counter Payments, QR Code (Scan and Pay) based payments.
- Donations, Collections, Disbursements Scalable.
- Raising Complaint from Mobile App directly.
Challenges to UPI System:
- Technical Glitches and Downtime:
- Issue: The UPI system occasionally experiences technical glitches, causing transaction failures or delays.
- Impact: Disruption in service affects user confidence and transaction reliability, impacting overall user experience.
- Security Concerns:
- Issue: Instances of phishing attacks, malware, and fraud targeting UPI users.
- Impact: Threats to financial security undermine trust in the system, requiring robust security measures and user awareness campaigns.
- Interoperability and Compatibility:
- Issue: Variations in app interfaces and compatibility issues among different UPI apps.
- Impact: Complicates seamless transactions between users of different banks or payment service providers, requiring standardization efforts.
- Transaction Limits and Regulations
- Issue: Restrictions on transaction limits imposed by banks or regulatory authorities.
- Impact: Limits may hinder large transactions or bulk payments, affecting the utility of UPI for businesses and high-value transactions.
- Network Connectivity Issues
- Issue: Inadequate internet connectivity in remote areas impacts UPI accessibility.
- Impact: Users in rural or less connected regions face challenges in accessing and using UPI services reliably.
- Customer Support and Dispute Resolution
- Issue: Inadequate customer support and delayed dispute resolution mechanisms.
- Impact: Frustration among users due to unresolved transaction issues or disputes, impacting overall user satisfaction.
- Competition and Market Dynamics
- Issue: Intense competition among payment service providers offering UPI-based services.
- Impact: Pressure to innovate and maintain competitive pricing while ensuring sustainable business models and profitability.
Way Forward:
- Enhanced Security Measures
- Implement stronger authentication protocols, multi-factor authentication, and biometric verification to mitigate fraud risks.
- Conduct regular security audits and vulnerability assessments to identify and address potential threats proactively.
- Standardization and Interoperability
- Establish uniform standards for UPI interfaces and transaction processes across all participating banks and payment service providers.
- Improve interoperability between different UPI apps to ensure seamless transactions for users across platforms.
- Improved User Education and Awareness
- Launch comprehensive awareness campaigns to educate users about safe UPI practices, recognizing phishing attempts, and securing their credentials.
- Provide easily accessible resources and support channels for users to report suspicious activities and seek assistance promptly.
- Enhanced Customer Support
- Strengthen customer support mechanisms with dedicated helplines, chatbots, and responsive dispute resolution processes.
- Ensure timely resolution of transaction-related issues and disputes to enhance user trust and satisfaction.
- Scalability and Infrastructure Development
- Invest in robust IT infrastructure and scalable technology solutions to support increasing transaction volumes and user growth.
- Expand network coverage and improve internet connectivity in underserved areas to enhance accessibility to UPI services.
- Regulatory Support and Collaboration
- Collaborate closely with regulatory authorities to review and adapt regulations governing UPI transactions
- Foster partnerships between banks, fintech firms, and government bodies to innovate and enhance the UPI ecosystem while maintaining regulatory compliance.
- Innovation and Continuous Improvement
- Encourage innovation in UPI-based services by incentivizing research and development
- Regularly update UPI systems with new features and enhancements to meet user expectations and address emerging market demands.
Citations:
Monetary Policy
In news
Recently, the Reserve Bank of India (RBI) in its Monetary Policy Committee (MPC) review announced that decided to keep the repo rate unchanged at 6.5 per cent, continuing the stance of 'withdrawal of accommodation' due to ongoing food inflation concerns and global uncertainties.
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Reserve Bank of India:
- Establishment: Founded on April 1, 1935, under the Reserve Bank of India Act, 1934.
- Functions:
- Formulates and implements monetary policy to control inflation and promote economic growth.
- Issues currency notes and coins and manages the country's currency supply.
- Regulates and supervises banks and financial institutions to maintain financial stability.
- Manages India's foreign exchange reserves and oversees foreign exchange transactions.
- Governance: Governed by a central board of directors appointed by the Government of India. The Governor of RBI heads the institution.
- Objectives:
- Maintain price stability to support sustainable economic growth.
- Ensure adequate credit flow to various sectors of the economy.
- Develop a robust and inclusive financial system.
- Role as Lender of Last Resort: Provides liquidity support to banks during financial crises, ensuring stability in the banking system
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Monetary policy:
- It is the macroeconomic policy laid down by the central bank-RBI.
- Monetary policy is a set of tools that a nation's central bank has available to promote sustainable economic growth by controlling the interest rate and the overall supply of money that is available to the nation's banks, its consumers, and its businesses.
- It is the demand side economic policythat is used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.
- The RBI implements the monetary policy through open market operations, bank rate policy, reserve system, credit control policy, moral persuasionand through many other instruments.
- Using any of these instruments will lead to changes in the interest rate, or the money supply in the economy.
Types of Monetary Policy:
1.Expansionary Monetary Policy
- This is a monetary policy that aims to increase the money supply in the economy by decreasing interest rates, purchasing government securities by central banks, and lowering the reserve requirements for banks.
- An expansionary policy lowers unemployment and stimulates business activities and consumer spending.
- The overall goal of the expansionary monetary policy is to fuel economic growth. However, it can also possibly lead to higher inflation.
2.Contractionary Monetary Policy
- The goal of a contractionary monetary policy is to decrease the money supply in the economy.
- It can be achieved by raising interest rates, selling government bonds, and increasing the reserve requirements for banks.
- The contractionary policy is utilized when the government wants to control inflation levels.
Monetary Policy Committee (MPC):
About:
- The MPC is a government-constituted body within the RBI, responsible for setting the country's monetary policy.
- It utilizes tools such as the repo rate, reverse repo rate, and bank rates to achieve its objectives.
Proposal:
- The idea of the Monetary Policy Committee was first proposed by the Urjit Patel Committee.
- The MPC held its inaugural meeting on October 3, 2016, in Mumbai.
Meetings:
- The MPC meets at least four times a year, specifically on a bimonthly basis.
- After each meeting, it publishes its decisions to the public.
Composition:
- The committee consists of six members: three officials from the Reserve Bank of India and three external members nominated by the Government of India.
- The Governor of the Reserve Bank of India serves as the ex officio chairperson of the committee.
Term:
- Each member of the committee serves a term of four years.
Decision-Making:
- Decisions are made by a majority vote, with the Governor holding the casting vote in the event of a tie.
- A simple majority of 4 out of 6 members is necessary for a decision to be approved.
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Citations:
