Current Affairs 31 December, 2024

Daily Current Affairs Quiz
31 December, 2024

International Affairs

1. Impeachment of President

Why in News?

South Korean law enforcement officials requested a court warrant on Monday to detain impeached President Yoon Suk Yeol as they investigate whether his short-lived martial law decree on December 3 amounted to rebellion.

Do you know the process of Impeachment of President in India?

2. NASA Parker Solar Probe

Context:

NASA’s pioneering Parker Solar Probe made history on December 24 when it flew closer to the sun than any other spacecraft, with its heat shield exposed to scorching temperatures topping 930 degrees Celsius.

Highlights:

• According to the agency, it is the closest any spacecraft has ever flown to the sun.
• It’s also solving many of the biggest mysteries involving the sun: how the solar wind originates, why it’s hotter in the corona than at its base, and how coronal mass ejections develop.

Aditya-L1: India’s First Sun Mission

It is the first Indian mission to observe the solar atmosphere and its influences on Earth’s environment. Aditya-L1 will be orbiting at 1.5 million kilometers from Earth, in a halo orbit around Lagrange Point 1.

• Launch Date
  • 2 September 2023, by ISRO
• Spacecraft Type
  •  Polar Satellite Launch Vehicle (PSLV)
• Launch Vehicle
  • Polar Satellite Launch Vehicle (PSLV-C57)

The National Aeronautics and Space Administration (NASA)

3. Pakistan to build Largest Nuclear Power Plant

Context:

Pakistan is set to construct its largest nuclear plant for electricity generation after the country´s atomic energy regulatory agency issued the licence for it.

What is Nuclear Power Plant?

A nuclear power plant is also known as a nuclear power station, nuclear generating station, or atomic power station. It is a thermal power station where heat is generated by a nuclear reactor, driving a steam turbine connected to an electricity generator.

4. Taliban will Close All NGOs Employing Women

Context:

The Taliban say they will close all national and foreign nongovernmental groups in Afghanistan employing women.

The Taliban

The Taliban, also known as the Islamic Emirate of Afghanistan, is an Afghan political and militant movement with an ideology blending elements of Pashtun nationalism and Deobandi Islamic fundamentalism.

5. H1B Visa

Context:

US President Trump has expressed his support for Elon Musk’s endorsement of the H1B visa program.

What is H1B Visa?

National Affairs

1. Private Members’ Bills

Context:

During the five-year term of the 17th Lok Sabha that ended in 2024, only 9.08 hours were spent on Private Members’ Bills, while the Rajya Sabha spent 27.01 hours on them during the period, shows an analysis by PRS Legislative Research, an independent research body.

Private Members’ Bill

A Private Members’ Bill is a legislative proposition presented by the member of parliament who is not part of the ruling party and government. Thus, unlike a government bill sponsored by a cabinet minister, a private members’ bill is sponsored by ordinary members, such as representatives from opposition parties and independent legislators, in the assembly.

• Private Member
  • Any Member of Parliament (MP) who is not a minister is said to be a private member.

2. Space Research Organisation of India launches SpaDeX mission

Context:

The PSLV C60 rocket carrying two small satellites, SDX01 – also known as Chaser – and SDX02 – Target, has successfully been launched into a circular orbit of 475 km.

• Docking is expected to occur in about a week time, specifically around the 7th of January.

SpaDeX Mission

ISRO has undertaken a twin satellite mission called SpaDeX to develop the orbital rendezvous, docking, and formation flying technologies for human spaceflight, in-space satellite servicing, and other proximity operations.

• Launch Date
  • 30 December, 202
• Launch Vehicle
  • PSLV-CA C60

3. Sheikh Abdullah

Context:

The J&K government’s official holiday list for 2025 released on Monday faced criticism from ruling National Conference (NC) for not including party founder Sheikh Abdullah’s birth or death anniversary and July 13, 1931 in the list.

Sheikh Mohammad Abdullah (5 Dec 1905 – 8 Sept 1982)

Sheikh Mohammad Abdullah was an Indian politician who was the founder of the All Jammu and Kashmir Muslim Conference and the first elected Prime Minister of Jammu and Kashmir after India’s accession. He was a great agitator against Maharaja Hari Singh’s rule and demanded self-rule for Kashmir, also known as Sher-e-Kashmir.

4. PM-JAY

Context:

AIIMS Delhi has treated over 30,000 patients under the Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY) to date and created over eight lakh Ayushman Bharat cards, the institute’s Director, Dr. M. Srinivas, said on Monday.

Ayushman Bharat Pradhan Mantri Jan Arogya Yojana (PM-JAY)

5. Wayanad Landslides

Context:

The Centre has reiterated that the Inter-Ministerial Central Team (IMCT) considers the Meppadi landslides in Wayanad, Kerala to be a “disaster of severe nature for all practical purposes”.

Landslide

A landslide is a mass movement of material, such as rock, earth or debris, down a slope.

The Inter-Ministerial Central Team (IMCT)

The Inter-Ministerial Central Team (IMCT) is a group of ministers from different departments that is sent to observe the damage caused by disasters like cyclones, floods, and landslides. The IMCT is led by the Executive Director of the National Institute of Disaster Management (NIDM). 

National Institute of Disaster Management (NIDM). 

6. Not of Standard Quality (NSQ) Drugs

Context:

Over the last few years, there have been a number of incidents across India involving not of standard quality (NSQ) drugs, the most recent being the deaths of five young mothers in Ballari district, Karnataka, allegedly due to contaminated drugs manufactured by a pharmaceutical company in West Bengal.

Not of Standard Quality (NSQ) drugs

Not of Standard Quality (NSQ) drugs refer to drugs that fail to meet quality standards or specifications. The term ‘standards of quality’ is primarily defined in the Drugs & Cosmetics Act, 1940, which means that the drug complies with the standards set out in the Second Schedule of the said Act.

The Central Drugs Standard Control Organization (CDSCO)

7. The Rise of Unified Payments Interface (UPI)

Context:

The Rise of Unified Payments Interface (UPI) in the eight years since its launch has been meteoric, with the UPI ecosystem now accounting for nearly eight in every 10 digital transactions in India, with a value of over ₹20.60 lakh crore in August of this year alone.

UPI: Revolutionizing Digital Payments in India

8. The Election Commission of India (ECI) Releases Data

Context:

The Election Commission (EC) has released data for the 2024 Lok Sabha elections, showing a narrowing gap between male and female turnouts, with female electors surpassing men in both 2019 and 2024 elections, increasing from 0.16 to 0.23 points.

Election Commission of India

9. Scorpene-Class Submarines

Context:

The Defence Ministry has signed two ₹2,867 crores contracts for the construction work of the air-independent propulsion module and electronic heavyweight torpedo, developed by DRDO, for Scorpene submarines.

The Scorpène-Class Submarines

The Scorpène-class submarines, developed by the French Naval Group and Spanish company Navantia, are diesel-electric attack submarines with air-independent propulsion, now marketed as the Scorpène 2000.

INS Vagsheer (s-26) and INS Tushil

10. Household Consumption Expenditure Survey 2023-24

Context:

Consumption inequality declined across rural and urban areas between Aug 2023 and July 2024 compared to the previous year, a survey showed.

Key Highlights:

• A sustained momentum in rural consumption continued and the gap between rural and urban narrowed in 2023-24 compared to 2022-23.
• The Gini coefficient, a statistical measure of inequality in the population, declined to 0.237 in 2023-24 from 0.266 in 2022-23 for rural areas and to 0.284 in 2023-24 from 0.314 in 2022-23 for urban areas.
• Average Household Consumption
  • According to the HCES, average household consumption expenditure in India has increased by 3.5% from August 2023 to July 2024.
  • This indicates a narrowing of the divide between rural and urban spending, and it brings down inequalities in consumption.
• Source
  • By the Union Statistics Ministry, estimates relating to poverty status levels are released on the basis of HCES findings and updated Consumer Price Index (CPI) data for use in measuring economic well-being.

The Gini coefficient, a statistical measure of inequality

11. Food Security in India

Context:

This latest report called the State of Food Security and Nutrition In the World 2023 states the formal record of the estimated number of 74 million undernourished people in India in the period from 2020 until 2022.

Key Highlights:

• India’s Position
  • The 2023 Global Hunger Index (GHI) lists India in the 105th position among 127 countries, with a score of 27.3. This places India in the “serious” category of hunger. 
• Released By
  • Concern Worldwide and Welthungerhilfe.
• The NSS Household Consumption Expenditure Survey (HCES) 2022-23 reports the number of meals consumed in the last 30 days.
  • Just 3.2% of the population consumed fewer than 60 meals in the last 30 days, which is a very small percentage that faces hunger.
  • The state of hunger in India is relatively low, indicating that basic food requirements are generally being met.

12. Tele MANAS

Context:

Mental health assistance helpline Tele-Manas, which was launched in 2022 to provide 24×7 services, has received 16.6 lakh calls since its inception. All states and UTs have started the service and have 53 functional cells, according to the health ministry.

Tele MANAS (Tele Mental Health Assistance and Networking across States)

Tele MANAS (Tele Mental Health Assistance and Networking across States) is a program that offers mental health services in India. The program was announced in the 2022 Union Budget and is implemented by the Ministry of Health and Family Welfare.

13. SaaS (Software as a Service)

Context:

Fintech Zaggle Prepaid Ocean Services a Chennai- and Silicon Valley-based Software as a Service (SaaS) provider has filed for IPO in the US.

SaaS (Software as a Service)

• Definition: SaaS is a model for delivering software applications over the internet, allowing customers to access and use them as needed, without the need for local installations or upfront hardware costs.
• Traditional vs SaaS Model:
  • Traditional Model: Customers had to install software on local hardware and pay for one-time licenses and hardware upfront.
  • SaaS Model: Software is hosted and delivered via the internet, typically with a subscription-based model, which allows users to pay based on usage and avoid hefty initial investments.
• Origin and Growth:
  • SaaS began during the dotcom boom and gained significant momentum post-2007 financial crisis, as businesses sought to cut costs.
• Example of SaaS:
  • Microsoft Office 365 offers an example of SaaS. Users can access the full suite via a monthly subscription rather than purchasing individual licenses, with data stored on the cloud and minimal hardware requirements.

SaaS and Cloud Computing

• Cloud Computing vs SaaS:
  • SaaS is a subset of cloud computing, which includes not just software delivery, but also computing power and data storage from remote servers.

Importance of SaaS

• Cost Efficiency:
  • SaaS turns fixed costs into variable costs.
• Encouraging Innovation:
  • SaaS promotes innovation by lowering entry barriers for businesses.
• Competitive Threats:
  • Established companies face increasing competition from SaaS-driven startups, as they can outmaneuver traditional businesses with more flexible, cost-efficient solutions.

Banking/Finance

1. RBI asks NPCI for the Beneficiary Account Name Look-up facility

Context:

RBI asks NPCI to build an infrastructure for online fund transfer systems.

Key Highlights:

• The facility should enable customers to verify the name of the bank account before initiating a transaction.
• Direct member or sub-members of RTGS and NEFT Systems are guided to provide by April 1, 2025.

RTGS or Real-Time Gross Settlement

RTGS or Real-Time Gross Settlement is another electronic mode of payment that enables funds transfer from one bank account to another. In contrast to NEFT, RTGS settles transactions on a one-to-one basis immediately after the instruction is received. 

National Electronic Funds Transfer

NEFT or National Electronic Funds Transfer is an electronic payment system regulated by the Reserve Bank of India (RBI) that allows funds to be transferred between bank accounts across the country, following RBI guidelines.

National Payments Corporation of India (NPCI)

2. Health Insurance in India

Context:

Health insurers disallowed ₹15,100 crore worth claims, or 12.9% of the total claims filed during fiscal 2023-24, according to data released by regulator IRDAI.

Insurance Regulatory and Development Authority of India

Insurance Regulatory Authority Report on Health Insurance in India

3. Financial Stability Report (FSR) by RBI

Context:

The asset quality of scheduled commercial banks (SCBs) improved further with the gross non-performing asset (GNPA) ratio declining to a 12-year low of 2.6% in September, the Reserve Bank of India (RBI) said in the December Financial Stability Report (FSR) released on Monday.

Key Highlights:

• The Net NPA ratio remained nearly at 0.6% for SCBs.
• Major buffers of capital, substantial earnings, and relentless strides in asset quality improvement boosted the resilience of the domestic banking system.
• The GNPA ratio for unsecured lending was marginally higher at 1.7%.
  • Unsecured lending are personal loans that does not require collateral, but is instead based on the borrower’s creditworthiness.
• The report further observed that banking system liquidity coverage ratio in September fell to 108.5% from 137.7% a year ago.

Gross Non-Performing Assets (GNPA)

Gross Non-Performing Assets (GNPA) is the total value of loans that have been in default for more than 90 days, indicating inefficiencies in loan recovery, impacting profitability and credit growth in a bank’s financial health.

• NNPA Stands for Net Non-Performing Assets. It’s the final amount of NPAs remaining after the bank has deducted provisions for doubtful and unpaid debts from the GNPA. NNPA is the actual loss suffered by the bank.

Commercial Banks in India

4. Production Linked Incentive (PLI) Scheme

Companies have invested ₹ 17,581 crore under the production linked incentive (PLI) scheme for specialty steel till October 2024, the government said on Monday.

Production Linked Incentive (PLI) Scheme

5. Microfinance Sector Stress Rises

Context:

The Reserve Bank of India (RBI) on Monday reported that stress in the microfinance sector doubled during the April to September period, as bad loans double in H1FY25.

Microfinance

Microfinance provides financial services to individuals and SMEs that lack access to conventional banking facilities, such as microcredit, loans, savings, checking accounts, microinsurance, and payment systems.

Stressed Assets

These are loans that are classified as non-performing assets (NPAs) or special mention accounts (SMAs). Stressed assets include NPAs, restructured loans, and written off assets. They are a strong indicator of the health of the banking sector.

• A bad loan is a loan that a borrower is unlikely to repay. It’s also known as a non-performing loan (NPL). 

P2P bad loans doubled: Report

6. Damage by Crypto Assets to the Macro-Financial Stability

Context:

RBI has stated that overuse of crypto assets will, in turn, weaken the impact of monetary policy, aggravate fiscal risks, and deprive real economy activities of resources required to finance them.

Highlights:

• Bitcoin price has increased more than two folds at 2024 raising the market capitalization of Stablecoins.
  • Stablecoins, a type of cryptocurrency designed to maintain a stable value by being pegged to a reserve asset like the US dollar
• RBI survey says that the cloud computing and AI/ML are the two emerging technologies most adopted by Indian banks.
• AI and ML are closely related technologies that are used to create machines that can mimic human intelligence and learn from experience.
  • Application
    • AI/ML is mainly employed for customer service, sales and marketing, risk management, and KYC processing.
• Cloud computing
  • It is the delivery of computing resources, like storage, databases, and software, over the internet. It allows users to access these resources on-demand, without having to buy and maintain their own physical infrastructure.

Crypto Assets & Cryptocurrency

Crypto assets are assets issued or transferred using distributed ledger technology (DLT) or blockchain technology. They are a wide range of digital instruments that can represent value or ownership. Crypto assets include cryptocurrencies.

Cryptocurrency (or virtual currency) is likely the most well-known type of crypto asset. Cryptocurrency is a digital currency or medium of exchange. It can be used To exchange for products or services, like fiat currency (such as Canadian dollars or US dollars)

7. Mutual Fund Industry Seeks Relief of Taxes

Context:

Association of Mutual Funds in India (AMFI) has proposed tax reliefs for debt schemes and rollback in the provision regarding the hike in equity taxation during the Budget 2025.

Key Highlights:

• In April 2023, the government had scrapped the indexation benefit for debt MF schemes, making profits taxed at slab rates for the investors.
  • It asks that debt fund taxation should be on par with that of listed bonds, with capital gains on redemption of units of debt-oriented mutual funds held for more than 1 year being taxed at 12.5%.
    • Capital gains are profits made from selling an asset like a bond, stock, or real estate.
    • Listed bond is a debt security that is traded on a recognized stock exchange, such as the National Stock Exchange (NSE)
• The industry also wants the cut in STT, which has resurfaced in the prior Budget.
  • The Securities Transaction Tax (STT) is a direct tax on the buying and selling of securities like stocks, mutual funds, and derivatives on recognised stock exchanges in India.
• AMFI proposes a revision in the taxation of all fund of funds (FoFs).
  • Fund of Funds (FoF) is an investment vehicle that pools capital from investors to invest in a diversified portfolio of other mutual funds.

The Association of Mutual Funds in India (AMFI)

The Association of Mutual Funds in India (AMFI) is a non-profit organization that represents all the Asset Management Companies (AMCs) of mutual funds registered with the Securities and Exchange Board of India (SEBI). 

• Established
  • August 22, 1995
• CEO
  • Chalasani Venkat Nageswar

8. Ather Energy, Schloss get Sebi nod for Public Offers

Context:

The Securities and Exchange Board of India (Sebi) has approved the IPOs of The Leela Hotels & Resorts´ parent Schloss Bangalore, Ather Energy, and four others.

What is SME IPO?

9. NBFC Loan sanctions down 13% in Q2

Context:

The loans sanctioned by non-bank finance companies in the second qurater of FY25 shrunk both sequentially and year-onyear. The annual drop was because of a decline in term loans and loans against shares.

• Term Loan
  • It is a type of loan where a borrower receives a lump sum of money from a financial institution and pays it back in regular installments over a set period of time. 
• Loan against Share
  • A loan against securities is a way to borrow money by using your investments as collateral. This means you can use shares, mutual funds, bonds, or insurance policies to secure a loan without selling them. 

Non-Banking Financial Company

NBFC stands for Non-Banking Financial Company. It is a financial institution that is not a bank legally, and is not supervised by a national or international banking regulatory agency. NBFCs are registered under the Companies Act, 1956.

10. Indian Derivatives Trading Slump

Context:

The Securities and Exchange Board of India (Sebi) has taken steps to rein in the retail fervour over derivatives trading.

Derivatives trading

Derivatives trading is a type of financial trading where investors buy or sell contracts that derive their value from an underlying asset, such as a stock, commodity, currency, or benchmark.

• Derivatives trading is a leveraged form of trading, which means that investors can buy a large quantity of an asset by paying a small amount. 

11. Banks Allocate Less than 10% of IT Budget

Context:

Banks in India allocated less than 10% of their information technology budgets to emerging technologies this year, the Reserve Bank of India (RBI) has found.

Economy

1. Depreciating Rupee

Context:

At present, the Indian rupee is witnessing quite a few turbulent times, the least of which is none of it all-time low at 85 to the U.S. dollar on December 19.

• Reasons
  • Continued foreign portfolio investments, a stretched and high stock valuation coupled with discouraging corporate performance, and economic stimulus from China.
  • The Donald Trump factor, which has boosted the dollar since his election to the U.S. presidency.
  • Trade deficits
  • The former RBI Governor, Shaktikanta Das, dismissed the idea of a BRICS currency, reiterating that India had no de-dollarization agenda.

The Indian Rupee Fell

2. Reliance Industries Seeks $3.5 Per Barrel Premium

Reliance Industries Ltd. is seeking a premium of at least $3.5 per barrel over an international benchmark for the crude oil it produces at the eastern offshore KG-D6 block, according to the tender the firm put out on Monday.

Key Highlights:

• The KG-D6 block is located in the eastern offshore of India, in the Bay of Bengal.
• Reliance aims to capitalize on the high-quality crude produced from the block by demanding a premium over global market prices like Brent crude.
• The tender signals Reliance’s confidence in the marketability of its crude and its ability to differentiate it from other global oil supplies.

The Organization of the Petroleum Exporting Countries (OPEC)

3. Indian Firms Raise Record Funds through Bonds

Context:

Indian firms’ fundraising through corporate bonds hit a record high in 2024, aided by declining yields and stronger appetite for long-term notes, and investors expect issuances to remain robust in 2025.

Corporate Bond

A corporate bond is a long-term debt instrument issued by a corporation to raise financing for operations, mergers, or business expansion. It provides the terms for which the corporation will repay the borrowed money; maturity is less than one year.

4. Vivad Se Vishwas Scheme

Context:

The Central Board of Direct Taxes (CBDT) on Monday announced an extension of the deadline for taxpayers participating in the Vivad Se Vishwas scheme.

Vivad Se Vishwas Scheme

The Vivad Se Vishwas Scheme, announced in Budget 2024, allows taxpayers to settle pending disputes by paying a lower amount of disputed tax along with specified percentages. Applications filed by January 31, 2025, will follow reduced rates under column (3) of the scheme’s table.

• Ministry
  • The Ministry of Finance

5. Ashwin Sheth plans Bengaluru debut, sets sights on IPO

Context:

IPO Plans: Ashwin Sheth Group is preparing for an Initial Public Offering (IPO) within the next 12 to 18 months, aiming to raise funds for expansion and development.

Initial Public Offering (IPO)

Agri Business

1. ICAR, Governing Body Members in Dispute Over Appointments

Context:

There had been lapses in the appointment of the new director of the Indian Agricultural Research Institute (IARI), which is an affiliate of the ICAR.

The Indian Council of Agricultural Research (ICAR)

The Indian Council of Agricultural Research is the largest global network of agricultural research and education institutes, responsible for coordinating agricultural education and research in India.

• Launch Date
  • 1929
• Ministry
  • Department of Agricultural Research and Education of the Ministry of Agriculture.
• President
  • Ministry of Agriculture.

The Indian Agricultural Research Institute (IARI)

The Indian Agricultural Research Institute, also known as the Pusa Institute, is India’s national institute for agricultural research, education, and extension. The institute, financed and administered by the Indian Council of Agricultural Research (ICAR), was responsible for the “Green Revolution in India” in the 1970s.

• Launch
  • 1905
• Director
  • Dr. Ch. Srinivasa Rao

2. Wind Projects in India

Context:

The government in india encourages states towards better availability of lands to renewable energy sources.

India’s Wind Power

• India’s wind power capacity has grown significantly, and as of September 2024, it has reached 47.36 GW.
• The country ranks fourth in the world in terms of installed wind power, which is mainly distributed across southern, western, and northwestern states.
• The onshore wind power potential is estimated at 132 GW.

Government Schemes to Boost Wind Energy

• National Offshore Wind Energy Policy
  • Announced in 2015, this policy aims to diversify India’s electricity mix by tapping into the country’s coastal resources. 
• Viability Gap Funding (VGF) scheme
  • Approved in 2024, this scheme provides funding for offshore wind energy projects. The scheme includes funding for the installation of 1 GW of offshore wind energy projects, and for upgrading two ports to meet logistics requirements. 
• Wind power projects
  • The government promotes wind power projects through financial and fiscal incentives, such as Accelerated Depreciation benefit and concessional custom duty exemption. 
• National wind power program
  • Started in 1983-84, this program was launched to attract private investment in the wind power sector. 
• National Solar Science Fellow Programme
  • This program provides a platform for scientists and engineers to use resources to address problems related to solar energy utilization. 

3. Bio-Energy Fuel

Context:

Refex Renewables & Infrastructure Acquires 51% Stake in Vyzag Bio-Energy Fuel

Bio Energy

Biomass energy, or bioenergy, is energy derived from plants and plant-based materials. Biomass can be used to produce fuels, power, and products. 

• Biogas: A mixture of methane and carbon dioxide produced by anaerobic digestion of organic materials. Biogas can be produced from organic waste, such as food processing waste, cattle manure, or landfill gas. 
• Biomethane: Biogas with carbon dioxide and other impurities removed. 
• Corn ethanol: A common biofuel. 
• Biodiesel: A renewable and sustainable fuel produced from vegetable oils and animal fats. 

Facts To Remember

1. Jimmy Carter, former U.S. President Dies at 100

• Jimmy Carter, the peanut farmer who won the presidency in the wake of the Watergate scandal and Vietnam War, endured humbling defeat after one tumultuous term, and then redefined life after the White House as a global humanitarian, died on Sunday. He was 100 years old.

2. Army Installs Shivaji statue on Pangong Lake Bank

• The councillor of Chushul in Ladakh has questioned the relevance of a statue of Chhatrapati Shivaji Maharaj that was installed by the Indian Army on the banks of the Pangong Tso (lake) in eastern Ladakh, a point also raised by several veterans on social media.

3. National Shooting Championship

• Adarsh Singh was in top form in clinching the men’s 25-metre standard pistol gold with a seven-point margin over Udhayveer Sidhu, Omkar Singh and Olympian Gurpreet Singh in the 67th National shooting championship at the Dr. Karni Singh Range, Tughlakabad.

4. Singapore’s DBS names Rajat Verma as DBS Bank India CEO

• Singapore’s DBS Group said it has appointed Rajat Verma as CEO of DBS Bank India succeeding Surojit Shome, who would retire in February.