Current Affairs 25 & 26 December, 2024

Daily Current Affairs Quiz
25 & 26 December, 2024

International Affairs

1. H1B Visa Programme

Context:

H1B visa programme, which mostly benefits Indian workers. The programme allows U.S. employers to hire skilled foreign professionals for specialised roles.

What is H1B Visa?

2. India Yet to Formally Scrap FMR with Myanmar

Context:

Recently a new protocol regulating the cross-border movement of persons within 10 km of Myanmar-India border under the auspices of the Union Home Ministry has been evoked.

Key Highlights:

• The FMR was opposed by Nagaland and Mizoram, where the Nagaland government passed a resolution against it.
• The Governor of Manipur has suggested a break in FMR for the period of time in which this temporary suspension is going to be in effect, along with emphasis on the border with Manipur.

Free Movement Regime (FMR)

• Free Movement Regime
  • It is a bilateral agreement between India and Myanmar that allows people living near the border to travel up to 16 km into each other’s territory:
    • Purpose: The FMR was implemented in 2018 which primary aim was to boost the region’s economy, improve access to education and healthcare, and strengthen diplomatic ties. 
    • How it works: To cross the border, people need to have a border pass that’s valid for one year and can stay up to two weeks per visit. 

3. What is Australia’s Online Safety Amendment about?

Context:

• Australia’s House of Representatives recently passed the “Online Safety Amendment (Social Media Minimum Age) Bill, 2024” which imposes obligation on certain social media platforms to take reasonable steps to prevent children under 16 years of age from having an account.

Do India have any Such Type of Law?

Although, there is no specific legal restrictions on protecting children from online harm, but India’s Digital Personal Data Protection Act, 2023 is something to focus on.

India’s Digital Personal Data Protection Act, 2023

• Requires data fiduciaries to collect “verifiable parental consent” from under-18 parents.
• No specific legal restrictions on protecting children from online harm.

National Affairs

1. Ken-Betwa River Linking Project

Context:

PM Narendra Modi Lays the Cornerstone for Ken-Betwa River Linking Project.

Key Highlights:

• Prime Minister Narendra Modi laid the foundation stone of the Ken-Betwa river-linking project in the Khajuraho region of Madhya Pradesh.
• Budget
  • It is estimated that about ₹45,000 crore would be required for this.
• Aim
  • The project is aimed at addressing water issues of the Bundelkhand region that spans Uttar Pradesh and Madhya Pradesh.
  • The project is also aimed at producing more than 100 MW of hydro power and 27 MW of solar energy.
• Concern
  • The various concerns raised over the river linking thereof were extinguished that they would damage the animals at the Panna Tiger Reserve.

Panna National Park

• Location
  • Inhabiting a domain in the Panna and Chhatarpur Districts in Madhya Pradesh, India.
• Announcement
  • The site was announced India’s 22nd Tiger reserve in the Year 1994.
  • A successful rehabilitation program in 2009 helped increase tiger numbers by nearly 80, despite poaching losses.
• Area
  • 542.67 km²

2. Property Cards: Record of Rights

Context:

Four years after the Union government launched the Svamitva scheme to digitise property records in rural areas, Prime Minister Narendra Modi will distribute 58 lakh property cards providing a “record of rights” to owners in over 50,000 villages across 12 States.

The Svamitva Scheme

The Svamitva Scheme, or Survey of Villages and Mapping with Improvised Technology in Village Areas, is a central sector scheme that aims to provide a clear property ownership solution for rural India. 

• Launch Date
  • April 24, 2020, on National Panchayat Day.
• Ministry
  • Ministry of Panchayati Raj

3. Mehrauli Park

Context:

The Archaeological Survey of India (ASI) has told the Supreme Court that two structures inside the Mehrauli Archaeological Park in Delhi bear religious significance.

Mehrauli Archaeological Park

• Location
  • Delhi, India and Spread over 200 acre.
  • Situated next to Qutub Minar and Qutb complex.
• Contains Architectural remains of Khalji dynasty, Tughlaq dynasty, Lodhi dynasty, Mughal Empire, and the British Raj.
• There are tombs of Balban, Jamali Kamali Mosque, Quli Khan’s Tomb, Gandhak ki Baoli, Rajon Ki Baoli, stepwell, and Madhi Masjid and many monuments.

4. Coastal Shipping Bill and the Merchant Shipping Bill

Context:

The soon-to-be enacted twin Bills — the Coastal Shipping Bill and the Merchant Shipping Bill — will provide a huge impetus to coastal shipping, besides enhancing Indian ship ownership and promoting ease of doing business in the country, says Union Minister for Shipping and Ports Sarbananda Sonowal.

What is Shipping Bill and the Merchant Shipping Bill?

5. Indias First Visit to Kuwait

Context:

The first-ever visit to Kuwait by an Indian Prime Minister after 1981 has been paid by Prime Minister Narendra Modi.

Key Highlights:

• Bilateral trade crossed $10 billion but could be classified as small.
• Supplies crude oil to India at the sixth rank, supplies LPG at the fourth position.

About Kuwait

• Capital:
  • Kuwait City
• Currency:
  • The Kuwaiti dinar (KWD)
• President:
  • Sheikh Mishal al-Ahmad al-Jabir al-Sabah 

India – Kuwait ‘Strategic Partnership’

7. The Disaster Management (Amendment) Bill, 2024

Context:

The Disaster Management (Amendment) Bill, 2024, raises serious concerns. Instead of filling in the gaps in the Disaster Management Act (DMA), 2005, the Bill has removed scope for participatory governance, accountability, and efficiency from the Act.

Inconsistencies in the Bill

• The Bill employs top-down guarded terminology, such as ‘monitor’ and ‘guidelines’, which might have helped build trust and bonding with communities and local governments.
• The definitions of ‘hazard’, ‘resilience’, and ‘vulnerability’ are insignificant and do not recognize the functions of local communities, panchayats, wards, and NGOs in the management of disasters.
  

Know more about The Disaster Management (Amendment) Bill, 2024

8. Tsunami in Tamil Nadu

Context:

December 26, 2024, marks 20 years since a devastating tsunami struck the coasts of several countries bordering the Indian Ocean, including Indonesia, Thailand, Sri Lanka, and India.

What are Tsunamis?

• Tsunamis are different from other waves in that they are normally caused by underground disturbances such as earthquakes.
• These are geological events brought about by earthquakes, submarine volcanic eruptions, landslides, or even asteroid impacts.
• Wavelengths of tsunamis are so long that they can travel amazing velocities across ocean basins.
• These waves can also strike the shore and are dangerous for hours, sometimes like walls of water.

Know more>>

9. Conduct of Election Rules, 1961

Context:

Congress leader Jairam Ramesh challenges amendments to the Conduct of Election Rules of 1961 that restrict access to election records for citizens.

What is Conduct of Election Rules, 1961?

10. Endangered Lion-Tailed Macaque (Macaca silenus)

Context:

A recent study warns of a growing threat to the critically endangered lion-tailed macaque, endemic to the Western Ghats due to increasing human interaction.

Lion-Tailed Macaque (Macaca silenus)

The lion-tailed macaque (Macaca silenus), also known as the wanderoo, is an Old World monkey endemic to the Western Ghats of South India.

• Habitat
  • The Western Ghats mountain range runs north-south through the states of Karnataka, Kerala, and Tamil Nadu.
• IUCN Status
  • Endangered

Also know: Olive Ridley turtle and Irrawaddy Dolphin

11. Pegasus

Context:

U.S. District Court for Northern District of California ruled NSO Group Technologies liable for installing Pegasus, a spyware suite, on targeted individuals’ phones via WhatsApp.

Pegasus: An Israeli Spyware for Cyber-Arms

• Pegasus is spyware produced by the NSO Group for covert and remote implantation into cellphone devices.
• It is marketed, in particular, against crime and terrorism, but states also spy on journalists, lawyers, political dissidents, and human rights activists.
• Licenses
  • Are issued by the Ministry of Defense of Israel.
• Activities
  • Reading text messages and snooping calls, gathering passwords, tracking location, accessing microphones and cameras, app harvesting.

12. Food Price Inflation in India

Context:

A Cabinet Minister suggested in November that the Reserve Bank of India should have a growth-oriented target rather than food price inflation.

Retail and Food Inflation

13. Centre Transferring Management of Environment Relief Fund to CPCB

Context:

Starting January 1, 2010, the Central Pollution Control Board (CPCB) will take over the responsibility of administering the Environment Relief Fund Scheme by taking it over from the United India Insurance Company Limited (UIICL).

Key Highlights:

• This was done because of the problem of poor utilization of the fund and very long delays in payment of compensation.
• The transaction is said to increase the efficiency and transparency of fund monitoring.

Central Pollution Control Board (CPCB)

14. EPFO adds 750k new members in October

Context:

The Employees’ Provident Fund Organisation (EPFO) reported a net addition of 1.34 million members in October. The surge reflects growing job opportunities and heightened awareness of social security benefits among workers.

The Employees’ Provident Fund Organisation (EPFO)

Banking/Finance

1. RBI review of state government finances

Context:

The latest report by the Reserve Bank of India on the finances of state governments gives quite a few signals about having gone in an impressive manner at the aggregate level.

Context:

• Debt stock also declined but remains higher than the recommended throwback mark of 20% as per the Fiscal Responsibility and Budget Management Review Committee in 2017.
  • The Fiscal Responsibility and Budget Management (FRBM) Review Committee was a committee formed in 2016 to review the Fiscal Responsibility and Budget Management (FRBM) Act.
• States managed gross fiscal deficit at 2.9% in 2023-24, less than the stipulated limit of 3%.
• Access to expenditure improvement increases because of capital spending, which accounts for 2.6% of GDP in 2023-24 versus 2.2% in 2022-23.

2. Micro Insurance Premium in Life

Context:

The number of micro-insurance agents at the end of FY24 stood at 102,000, of whom 19,166 belonged to public-sector life insurers and the rest to private ones.

Key Highlights:

• New business premium from micro-insurance in life insurance set its peak record for the first-time crossing the brink of Rs 10000 crores during 2023-24, according to an Irdai report.
• The total NBP thus exceeds by 23.5% the Rs. -892 million of fiscal 23.
• Private life insurers captured more than Rs 10,708.4 crore in this segment while accounted for Rs 152 crore by Life Insurance Corporation of India (LIC).
• At FY24-end, the number of micro-insurance agents was 102,000 with contributions from NGOs at 4.49 percent, self-help groups at 0.25 percent, micro finance institutions at 0.24 percent, business correspondents at 0.12 percent, and the rest at 94.90 percent.
  • A micro-insurance agent is an individual or entity that distributes micro-insurance products to the target market.
  • NGO is a non-profit organization that operates independently of any government, typically one whose purpose is to address a social or political issue.

Micro Life Insurance Premium

• Micro insurance is an insurance product primarily devised to make financial protection affordable and accessible to low-income individuals or groups.
• It mainly targets the rural poor, informal sector workers as well as self-occupied people who do not have the chance to reach traditional life insurance products.
• The policy covers natural or accidental deaths.

Rule of Government and Supporting Policies

• Micro Insurance products are regulated by the Insurance Regulatory and Development Authority of India (IRDAI) to ensure that minimum standards and protection of interest are being met out for the customer policyholder.

3. Surety Bonds in India

A surety bond is a legally binding contract that provides financial protection and assurance that a party will fulfill their obligations. The Surety bond market is evolving in India, which offers an alternative to traditional bank guarantees and play a important role in managing risks associated with non-performing assets (NPAs) in the banking sector.

Surety Bonds in India:

• Introduction of Surety Bonds:
  • Surety bonds in India were introduced with the influence of the Insurance Regulatory and Development Authority of India (IRDAI) in February 2022.
  • The Insolvency and Bankruptcy Board of India (IBBI) and surety bonds have established a strong case for banks to mitigate risks related to NPAs.
• Growth Prospects:
  • The Indian surety bond market has been growing steadily and is expected to become a multi-billion-dollar industry in the next few years.
  • Issuers of surety bonds (primarily non-life insurance companies) are anticipating favorable policy support in the 2025-26 Budget.
  • By March 31, 2024, the number of surety bonds issued weekly in India is expected to reach an average of 25 bonds.
  • The market is projected to become a trillion-rupee market by FY30.

Surety Bonds as an Alternative to Bank Guarantees:

• Definition:
  • Surety bonds are insurance policies that cover firms and contractors, where the insurer assumes financial responsibility in case a project fails or is abandoned.
  • They are often seen as an alternative to bank guarantees, which traditionally required collateral or security to issue the guarantee.
• Differences Between Surety Bonds and Bank Guarantees:
  • Bank Guarantees: Typically charge around 1.5% of the total guarantee amount and require collateral or security to back the guarantee.
  • Surety Bonds: Charge higher premiums (up to 6% of the sum) but do not require collateral or security from the contractor. They also have lesser financial cover for the beneficiary, as the insurance company pays only after the default of the contractor is established.

4. Foreign Currency Spending in India Dips

Context:

India’s foreign currency expenditure shrank 14% to USD 2.4 billion in October, marking the lowest influx since June 2024.

Key Highlights:

• Domestic credit card spending reaches R.s 2 lakh crore and UPI transactions reach R.s 23.4 lakh crore.
• UPI transactions also significantly increased to ₹23.4 lakh crore.

Foreign currency expenditure

Foreign currency expenditure is an expense incurred in a foreign currency, such as when a business makes regular payments in a foreign currency for imports or exports.

UPI: Revolutionizing Digital Payments in India

5. Banking Sector Show Sustained Profit Growth

Context:

The banking sector reported a record quarterly net profit for the September quarter amid improving stability in net interest margins (NIMs) and sustained double-digit growth in pre-provisioning operating profit (PPOP).

Net interest margin (NIM)

Net interest margin (NIM) is a financial indicator that measures the profitability of a bank or other financial institution. It is calculated by dividing the net interest income (interest income minus interest expense) by the total earning assets. 

NIM is a main indicator of a financial entity’s health and efficiency. It can help investors determine whether to invest in a financial services firm, and can provide insight into a firm’s cost structure: 

• Positive NIM: 
  • A positive NIM indicates that the entity is operating profitably.
• Negative NIM: 
  • A negative NIM indicates that the entity is inefficient and may need to take corrective action.

Pre-Provision Operating Profit (PPOP)

• Financial metric representing income generated in a specific time period before accounting for future bad debts.
• Key metric for banks providing insight into operational efficiency.
• Calculated by subtracting expected loan defaults and uncollectible debts from total income.
• Estimates remaining operating profit after loan defaults.

Economy

1. Govt. will boost spending quality, cut fiscal deficit

Context:

The government will continue its focus on improving quality spending, strengthening the social security net and bring down the fiscal deficit to 4.5% of the GDP in FY26, a Finance Ministry document said.

Comparing GVA and GDP

Fiscal Deficit

2. SteelMin wants Customs duty to double to 15%

The steel ministry has urged the Ministry of Finance to double the basic Customs duty on imported finished steel products to 15 per cent from the current 7.5 per cent in the upcoming Union Budget for 2025–26, people aware of the matter said.

3. Green Steel

Context:

The finance ministry has rejected the steel ministry’s plan for a central public entity that would buy green steel in bulk.

Context:

• About Green Steel
  • Green steel is steel made using an environment-friendly process that emits less carbon.
• Current Status
  • The steel ministry suggested having an agency like EESL, the joint venture of four public sector utilities under the ministry of power.
  • A task force has been constituted by the ministry to decide what “green steel” means.
• Steel ministry aims to develop a green steel demand base in India through the GPP policy framework of the steel industry.

4. India’s Trade Policy Reforms

Context:

The Union Commerce Ministry is exploring ways to boost the export value of six product categories across 20 priority markets- the advanced Western nations, Russia, China and Indonesia.

Key Highlights:

• Focused sectors include free-trade agreements with these twenty countries includes the European Union and the US.

European Free Trade Association (EFTA)

5. Economic growth in India and challenges ahead

• GDP Growth Projections:
  • Expected to slow down to 6.5%-7% in FY 2024-25, down from previous years.
  • RBI revised full-year growth forecast to 6.6% from 7.2%.
• Slower Government Capital Expenditures:
  • Government spending on infrastructure is slower than anticipated, affecting economic momentum.
  • Delayed capital expenditures impact long-term growth prospects.
• Higher Interest Rates & Tightened Lending:
  • Increased interest rates by RBI to combat inflation, leading to higher borrowing costs.
  • Reduced lending impacts sectors like real estate, consumer goods, and corporate investment.
• Private Sector Investment Hesitation:
  • Private corporate sector has not fully recovered, with slower investment growth.
  • Business confidence remains low due to economic uncertainties.
• Government-led Growth:
  • Future growth largely driven by capital expenditure in government infrastructure projects and household investments.
  • Fast-tracking infrastructure projects is crucial for sustaining growth.

Agri Business

1. Prime Minister-Economists Pre-Budget Discussion

Key Highlights of the Discussion:

• Fertile agriculture productivity with sustainable rural employment opportunities.
• Mobilizing private investment and public funds in infrastructure.
• Financial inclusion, exports boosting as well as attracting foreign investment.
  • Financial inclusion is the availability and equality of opportunities to access financial services.
• Suggestions for PLI scheme for MSMEs
• Purpose
  • To create an actionable policy framework that can be maintained over time to keep India moving under uncertain geopolitical and economic environments.

2. Multipurpose Primary Agriculture Credit Societies (M-PACS)

Context:

Amit Shah, the Union Home and Cooperation Minister, has inaugurated 10,000 Multipurpose Primary Agriculture Credit Societies (M-PACS).

Key Highlights:

• The government has a plan of establishing two lakh M-PACS within five years.
• Storage and distribution of manure, gas, fertilisers, and water will be among the 32 activities that M-PACS will be undertaking.
• Distribution of RuPay Kisan Credit Cards: Shah’s initiative helps farmers be acquainted with low-cost loans.

Multipurpose Primary Agriculture Credit Societies (M-PACS)

Primary Agricultural Credit Societies (PACS) are the primary branches of the short-term co-operative credit structure, primarily dealing with rural borrowers, providing loans, collecting repayments, and managing distribution and marketing functions. They form the base of the co-operative credit structure, linking ultimate borrowers to higher financing agencies.

3. SYMSAC XI in Kozhikode

Context:

The 11th Nation Symposium on Spices and Aromatic Crops or SYMSAC XI will be taking place in Kozhikode from January 7 to 9. Organized by the Indian Society for Spices (ISS).

Key Highlights:

• Focus
  • it will focus this time on “Strategies for Smart Production, Product Diversification, and Utilization.”

4. Agricultural Loans and the Payback Potential in India

Context:

Reduced NPA, showing that farmers are improving their repayment capacity.

• A NPA refers to loans or advances that have stopped generating income for the bank.
• Popular schemes of the Union Government are Kisan Credit Card and PM KISAN which are targeted to farmer welfare.

Kisan Credit Card and PM KISAN

Facts to Remember

1. New Governors

• Ex Union Home Secretary Ajay Kumar Bhalla has been appointed as the governor of Manipur.
• The New Mizoram governor is former Army chief Vijay Kumar Singh.
• Kerala Governor Arif Mohammed Khan transferred to Bihar.
• Raghubar Das resigns as Governor of Odisha The President accepts his resignation.
• Former Union Home State Madhya Pradesh sees Dr Hari Babu Kambhampat as its new governor.

2. M.T. Vasudevan Nair, passes away at 91

• M.T. Vasudevan Nair, one of India’s greatest writers of all time, died in a private hospital here on Wednesday. He was 91.

3. Chennai Metro Rail begins trial run of its first driverless train

• The three-coach driverless train, manufactured in Sri City,was transported individually as separate coaches to the Poonamallee depot in mid-October

4. Salman Rushdie’s The Satanic Verses available in India

• The Satanic Verses, a controversial book by British-Indian novelist Salman Rushdie, is available for purchase in India, 36 years after the Rajiv Gandhi government banned the work.

5. Tiger Zeenat remains on the run in West Bengal

Zeenat: The Tigress

6. Arunish Chawla named revenue secretary

7. India’s older population will Increase

• India’s older population will swell from 153 million today to 347 million in 2050, the UN projects, as growth is slow and fertility has dropped significantly.