Current Affairs 1 & 2 December, 2024

Daily Current Affairs

1 & 2 December, 2024

National Affairs

1. PM Narendra Modi Calls for ‘SMART Policing’ in Police Forces

• PM Narendra Modi asks police forces to adopt the ‘SMART policing mantra,’ which includes strategic, meticulous, adaptable, reliable, and transparent.
• He called attention to threats from digital frauds, cybercrimes, and AI, specifically deep fakes.
• He called upon the police force to tap into India’s AI power and ‘aspirational India’ to overcome AI challenges.
• Modi appreciated urban policing initiatives and suggested their implementation in 100 cities.
• He insisted on technology utilization to scale down the work of the constabulary and declared the police station as the apex point for all resources utilized.
• He proposed a National Police Hackathon and advocated more focus towards port security.
• The conference dealt with challenges to national security related to counter terrorism, Left Wing Extremism, cybercrime, economic security, immigration, coastal security, and narcotrafficking.

2. INDIA AND CAMBODIA COMMENCES INAUGURAL JOINT TABLE TOP EXERCISE CINBAX IN PUNE

Indian Army and Cambodian Army Joint Table Top Exercise, CINBAX begins at Foreign Training Node, Pune.

• The wargamed Counter Terrorism operations exercise will be conducted from 1st to 8th December, 2024
• Three phases of exercise will be conducted: preparations, Table Top exercises, and finalizing plans.
• Indian made weapons and equipment will be showcased during the exercise which will promote ‘Atmanirbharta‘ and indigenous defense capabilities.

3. UPI: Revolutionizing Digital Payments in India

In October 2024, Unified Payments Interface (UPI) achieved a historic milestone by processing 16.58 billion financial transactions in a single month

UPI: One Mobile Application for India’s Economic Prosperity

• Launched in 2016 by NPCI, UPI integrates multiple bank accounts into one.
• Supports smooth fund transfers and merchant payments and peer-to-peer transactions.
• To make India a cashless economy for all.
• The book also underscores India’s continuous integration of technology for inclusive growth and economic prosperity.

4. “World AIDS Day 2024 Commemoration Inaugurated”

• Union Minister of Health and Family Welfare, Shri Jagat Prakash Nadda.
• Conducted at Devi Ahilya Vishwavidyalaya Auditorium, Indore.

World AIDS Day 2024: India’s Commitment to HIV/AIDS Rights

• Emphasizes legal protections, healthcare access, and societal change.
• Reminds of the efforts of those who have fought against the disease and lost loved ones.
• Highlights the ongoing Phase V of the National AIDS and STD Control Program.
• Highlights sustained efforts by NACO and State AIDS Control Societies, resulting in a 44% lower HIV epidemic in 2023 and a 79% decline in AIDS-related deaths.

Union Health Minister Shri Nadda’s AIDS Fighting Guidelines

• Complains about India progressing with respect to AIDS control wherein it starts producing cheap as well effective medication and shares to the needs.
• It emphasized India’s vision to meet the Sustainable Development Goals in 2030, with an improvement of 44% on new HIV cases since 2010 and a reduction of deaths due to AIDS by as much as 79%.
• It also reported India’s 90-90-95 target for combating AIDS but later increased it to 95-95-95.

5. INDIA – MALAYSIA JOINT MILITARY EXERCISE HARIMAU SHAKTI COMMENCES IN BENTONG CAMP, MALAYSIA

India-Malaysia Joint Military Exercise HARIMAU SHAKTI: 4th Edition

It will begin at Bentong camp, Pahang district, Malaysia from 2nd to 15th December 2024. it is being done for developing joint military capability against counter insurgency in jungle area. The exercise will be held in two phases-cross training and simulated exercises.

• Objective: Bring about best practices, inter-operability, and intensified cooperation in defence.

Banking/Finance

1. RBI likely to hold rates

Expected Interest Rate Cut by Reserve Bank of India

• According to a Business Standard survey, the six-member monetary policy committee (MPC) in India is not expected to be perforated with the lowering interest rate tendency in their next review meeting.
• IDFC First Bank alone expects a 25bpts cut in policy repo rate.
• The last 10 reviews of MPC warranted no alteration in the repo rate.
• Most of the respondents expect that growth and inflation estimates for the current financial year will be revised.
• The bank may cut its growth forecast from 7.2% and aerate its inflation outlook from 4.5%.

Repo Rate

• Repo rate is the interest rate charged by the Reserve Bank of India when lending money to commercial banks.
• Any alterations in repo rates can influence the economy directly.

Reverse Repo Rate in India

• Provides interest rate by RBI for borrowing from commercial banks.
• Charged by banks to park excess money with RBI for short-term.
• Crucial monetary policy instrument controlling money supply.

1. An increase in Bank Rate generally indicates that the market rate of interest is likely to fall. (UPSC CSE, 2013)

• Market rate of interest is likely to fall.
• Central bank is no longer making loans to commercial banks.
• Central bank is following an easy money policy.
• Central bank is following a tight money policy.

Ans: d) Central bank is following a tight money policy.

See more MPC related UPSC PYQ…

2. ´ Har Ghar Lakhpati´: SBI´s new mantra for deposit accretion

State Bank of India Strategy to Enhance Deposit Accretion

• SBI has devised a three-pronged strategy to enhance deposit accretion.
• The first is an aspirational product, Har Ghar Lakhpati, which is targeted to make depositors lakhpatis by helping them increase their deposits to ₹ 1 lakh through recurring deposit (RD) schemes.
• The second product allows depositors to save a part of the interest earned on fixed deposits, or FDs, into mutual funds and another part into a pension corpus.
• SBI plans to launch both products this month.
• Deposit growth remained at below 10% YoY, mainly on the back of a significant drop in loan demand.

State Bank of India (SBI)

• Headquartered in Mumbai, Maharashtra.
• Chairman: Challa Sreenivasulu Setty
• 48th largest bank globally by total assets.
• Ranked 178th in Fortune Global 500 2024.
• Largest bank in India with 23% market share by assets and 25% share of total loan and deposits market.
• Tenth largest employer in India with nearly 250,000 employees.

3. Indian Government Plans to Double Wage Ceiling for Employees Provident Fund (EPF) and Employees State Insurance Corporation (ESIC)

• The government plans to double the monthly wage ceiling for mandatory deductions from salaries for contribution to the Employees Provident Fund (EPF).
• The wage ceiling refers to the salary threshold up to which it is mandatory for a worker in an establishment covered under the EPFO or ESIC to make monthly contributions.
• The last wage ceiling revision for the EPFO took place in 2014.
• The board deliberated on bringing people who earn beyond the mandatory wage cap and opting out within the ambit of the social security organization.
• The board gave its final nod to the centralized pension payment system (CPPS), which will be implemented on January 1, 2025.

Centralized Pension Payment System (CPPS)

• Sanctioned the central payment system of Employees Pension Scheme, 1995
• Involves a landmark shift which introduces national-level centralized payment mechanism at all centre-head points across the country.
• The system will benefit over 78 lakh pensioners under EPS and also bring smooth and hassle-free delivery.
• Pension Payment Orders will not be required, the CPPS will enable pension payments across India.
• The facility will be rolled out on 1st January 2025 under EPFO’s IT modernization project Centralized IT Enabled System (CITES 2.01).
• The CPPS is expected to bring down the cost of pension disbursal.

4. Banking System Liquidity Slips into Deficit

• The liquidity of the banking system has slipped into deficit because of increased foreign exchange interventions and temporary mismatches in government flows.
• There is a possibility of cuts in the cash reserve ratio or CRR requirement for the banks.
• Core liquidity surplus, comprising system liquidity and government balances, has fallen sharply.
• A rate cut is unlikely in the wake of ongoing risk of food inflation.
• Many economists believe that a rate cut can start from February.
• Food inflation needs to correct and sustain at softer levels for headline inflation to come below 5% in the second half of FY25.

A foreign exchange intervention is an action taken by a central bank usually to control exchange rate volatility. This stability is achieved by either buying or selling a currency in the foreign exchange market.
Countries may intervene as well in order to weaken their currencies against those of other countries. This is done in an attempt to make the prices for their exports more attractive to international buyers.

Also read: Inflation

Q- With reference to the Indian economy, consider the following statements: (UPSC PRE-2022)

1. If the inflation is too high, Reserve Bank of India (RBI) is likely to buy government securities.
2. If the rupee is rapidly depreciating, RBI is likely to sell dollars in the market.
3. If interest rates in the USA or European Union were to fall, that is likely to induce RBI to buy dollars.

Which of the statements given above are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Answer- Option B

5. GST Collection Drops Despite Festive Season

• GST collection in November fell to ₹1.82 lakh crore from ₹1.87 lakh crore in October.
• Compared with the same period the previous fiscal, it is higher by 8.5%
• Experts interpreted the same differently. According to some people, it depicts a slowdown in the consumption cycle while others said there has been double-digit growth in domestic collection, hinting at consumption.
• Domestic collection has risen over 9% from the GST portal, while import collection has risen 5.9% and 6.3% respectively.
• The December 21 meeting of the GST Council is likely to recommend measures to boost collection.
• Domestic GST revenue growth of 10%+ in FY25 supports GDP data, indicating increased domestic consumption.
• “Income tax numbers are different, and GST numbers are dichotomous,” states Vivek Jalan, partner at Tax Connect Advisory Services LLP, adding that in this comparison YTD direct tax collections did better by growing more than 15% while on the other hand, it grew 9.3%.

Agri Business

1. Stubble burning ends season with 34% fall, Punjab records lowest cases since 2016 

India: Stubble Burning Trending Down

Incidents of stubble burning in India decreased more than 34% to 37,602 from 57,242 in 2023
Government officials say that it is a result of efforts made by the administration towards the education of the farmers and also proper management of paddy straw
Farmers choose a time so they will not be detected by the satellites: media reports.

• The Supreme Court has asked for a report from air pollution watchdog CAQM.
• CREAMS, an Indian Agricultural Research Institute, reported 10,909 stubble burning incidents from Punjab, Haryana, Uttar Pradesh, Delhi, Rajasthan, and Madhya Pradesh.
• Standard Protocol for monitoring active fire events, as suggested by CAQM, is followed.
• The government is likely to continue monitoring in Uttar Pradesh and Madhya Pradesh during the late planting period.

Read more…

2. FCI’s new norms in first wheat tender to eliminate millers having ‘excess’ stock

India’s First Weekly E-auction for Wheat

• The government will conduct the first weekly e-auction of 1 lakh tonnes on December 4 in several states.
• The FCI has brought new norms which keep processors out of the tender process if they have “excess stock”.
• The new norms have created resentments among millers who view them as’reward’ for private parties not buying in the open market.
• New norm requires bidders to submit an undertaking that they do not have wheat stocks over and above their monthly processing capacity.
• The quantity offered is an estimated requirement in a state and to ensure that it is not used for trading purposes.
• The government declared that FCI is free to sell 25 lt of wheat in the open market under the Open Market Sales Scheme through e-auction to flour mills and other producers of wheat products, processors, and end users by March 31, 2025.

Also read: Food Corporation of India (FCI)

3. FSSAI classifies packaged drinking water as ‘High Risk Food Category’

Food Safety and Standards Authority of India (FSSAI) Classifies Packaged Drinking and Mineral Water as a “High Risk Food Category”

• Packaged drinking and mineral water are considered a “High Risk Food Category” by FSSAI as a result of lack of BIS certification
• This category of foods is strictly put to risk-based inspection.
• Packaged drinking water and mineral water manufacturers will be at risk-based annual inspections.
  • Inspection will also be performed before the grant of the license or registration.
  • Centralized licensed manufacturers under high risk food categories will be at annual audit by an FSSAI recognized third party Food Safety Auditing Agency.
• The industry has, in the past sought simplified compliance norms, such as removal of dual certification by the Bureau of Indian Standards and FSSAI.

Also read: Food Safety and Standards Authority of India (FSSAI)