Current Affairs 31 January 2025

Daily Current Affairs Quiz
31 January, 2025

National Affairs

1. Axiom-4 Mission

Context:

Indian astronaut Group Captain, Shubhanshu Shukla will be the pilot of the upcoming Axiom-4 mission to the International Space Station (ISS). Mr. Shukla, who is also one of the four astronaut-designates selected for Gaganyaan mission, will become the first Indian astronaut to go to the ISS. The mission will be launched from Florida.

Axiom-4 Mission

• A private mission to the International Space Station (ISS).
• Conducted by Axiom Space, a US based space infrastructure company.
• Using the repurposed SpaceX Crew Dragon to transport astronauts
• It is the fourth joint mission after Ax1, Ax2 and Ax3 with NASA.

Mission Objectives

• Commercial Space Programs
  • Enabling space tourism and commercial research in Low Earth Orbit (LEO).
    • Low Earth orbit (LEO) is the area around Earth where satellites orbit at an altitude of 1,200 miles (2,000 km) or less. LEO is the closest orbital range to Earth and is commonly used for communications, imaging, and observation. 
  • Proving commercial space stations as a business RD platform.
• International Cooperation
  • A multinational crew will reinforce global partnerships in space.
  • Enhance joint space exploration efforts between nations.
• Research Development
  • Microgravity research in material’s science, biology and Earth observation will be the mission focus concentrating on technological breakthroughs and novel applications..

Key Features

• Spacecraft Crew
  • It will be launched with a Falcon 9 rocket and carry professional astronauts researchers and private individuals.
• Mission Duration Activities
  • 14 day space mission on the ISS with the conduct of experiments tech demos and outreach programs.
• Commercial Space Station Development
  • Part of Axiom Spaces strategy for the first commercial space station.
  • A change from reliance on the ISS towards an independent orbital platform.

For India

Projects

• Increasing India’s presence in the global race for space.
• The ISRO-NASA collaboration would provide Indian astronauts the opportunities for training for undertaking tasks onboard (ISS).
• Provides an additional leverage for India including enhanced stature in human space flight besides increased international cooperation.

   Background Facts 

• India- NASA Agreement 2023
  • The United States agency NASA has now chosen to train the astronauts of the nation based on terms from Artemis Accords.
• Gaganyaan Mission
  • India Approximately  post 2025 years. The launch follows the completion of two test unmanned flights without astronauts aboard successfully.

International Space Station (ISS)

• Large permanently crewed laboratory, orbiting Earth at 400 km altitude.
• Joint venture of 15 countries and 5 space agencies.
• NASA, US, Roscosmos, Russia, ESA, Europe, JAXA, Japan, CSA, Canada
• Operations
  • Hosts 7 astronauts traveling at 766 km/sec.
  • Makes 16 Orbits around Earth daily about every 90 minutes.

Bharatiya Antariksha Station

2. INSV Tarini 

Context:

As part of the ongoing mission to circumnavigate the globe under the Navika Sagar Parikrama-II, Indian Navy officers Lieutenant Commander Dilna K. and Lieutenant Commander Roopa A., aboard sailing vessel INSV Tarini, passed through Point Nemo during the leg of sailing from Lyttelton Port, New Zealand, to Port Stanley, Falkland Islands.

INSV Tarini

• Background
  • INSV Tarini is the Indian Navy’s second sailboat.
  • Built at Aquarius Shipyard Goa.
  • Commissioned for operation on 18 February 2017 after intensive sea trials.
• Design Features
  • Type Cruising sloop designed for long range sailing.
  • Hull sandwich wood core and fibre glass ensures the durability needed.
  • Sails Fitted with six sails including a mainsail genoa stay downwind and storm sail.
• Windvane monitoring for emergency steering
  • Capability Designed to withstand extreme conditions and support long duration voyages.
• Builder
  • Aquarius Shipyard Private Limited

Navika Sagar Parikrama-II

Two Indian Navy women officers Lt Cdr Roopa A and Lt Cdr Dilna K, will set sail on a globe circumnavigating expedition aboard INSV Tarini. This expedition named Navika Sagar Parikrama-II is to repeat the first version of the circuit and showcase India’s maritime potential and work towards the vision of equipping women to sail in the ocean.

Previous Indian Navy Expeditions

• Transoceanic voyage from Goa to Rio de Janeiro via Cape Town and back.
• Sailing expedition from Goa to Sri Vijaya Puram formerly Port Blair and back.
• Sortie from Goa to Port Louis Mauritius performed in a dual handed mode.

3. India’s AI Vision

Context:

Union IT Minister Ashwini Vaishnaw said that India will develop multiple sovereign AI foundation models within 8 to 10 months. This comes as China’s DeepSeek AI model gains global attention.

Governments AI Strategy GPU Procurement

• India AI Mission
  • Approved March, 2024
  • Initially aimed to procure 10,000 GPUs now expanded to 18,693 GPUs.
  • 10 companies such as Reliance Jio Tata Communications and Yotta Data Services will provide the startups researchers and academia with GPUs.
• Cost Efficiency
  • The rate of a GPU is set at Rs.115.85 per hour for low end and Rs.150 per hour for high end. This is significantly cheaper than the global benchmark of $2.5–$3 per GPU hour.
• Financial Support
  • Direct central funding equity based funding to encourage private investment.
  • 40% discount for startups, researchers and educational institutions.
  • Long term users 6 months or more may get additional discounts.
• Competing with DeepSeek Global AI Leaders
  • Chinas DeepSeek recently built an AI model at a fraction of global costs raising concerns.
  • India will host DeepSeek on its servers and thereby mitigate risks associated with privacy and data security.
• Indias AI Models vs Global Benchmarks
  • DeepSeek was trained on 2,000 GPUs.
  • ChatGPT4 was trained on 25,000 GPUs.
  • The procurement of 18,693 GPUs by India is a strong foundation for competing in AI development.
• Evaluation Criteria for AI Model Developers
  • Companies will be evaluated based on
    • Technical ability and methodology.
    • Applicability of the use cases to India agriculture education climate change etc.
• Ethical implications and scalability
  • Financial feasibility and sustainability of the models.
• Indigenously Developing GPU AI related Applications
  • India is actively developing indigenous GPUs to reduce reliance on foreign technology.
• 18 AI applications have been selected for funding focusing on:
  • Agriculture
  • Learning disability solutions
  • Climate change mitigation

DeepSeek AI

4. Household Consumption Expenditure (HCES), 2023-24

Context:

The monthly per-capita consumption expenditure (MPCE) on food items was highest in Assam (53.2 per cent), followed by Bihar (52.5 per cent), West Bengal (51.5 per cent), and Meghalaya (50.3 per cent) during the period from August 2023 to July 2024, according to the latest report of the Household Consumption Expenditure Survey released by the National Statistics Office (NSO).

Key Findings:

• Highest Share of Food Expenditure by State
  • Rural areas Assam 53.2%, Bihar 52.5%, West Bengal 51.5% and Meghalaya 50.3%.
• Lowest Share
  • Kerala 40.32% and Delhi 40.32% followed by Punjab 42.43% and Maharashtra 42.74%.
• Spending on Beverages Processed Food
  • Households in Arunachal Pradesh 15.8%, Assam 12.8% Bihar 10.46% and West Bengal 10.3 % spent the largest share of their budget on beverages and processed foods.
• Percentage Share of Cereals
  • Maximum in rural regions Jharkhand at 7.9%, Odisha at 7.5%, Bihar at 6.59% and West Bengal at 6.46%.
  • Highest in urban areas Manipur at 6.7%, Jharkhand at 5.84% and Bihar at 5.76%.
• National Level Patterns of Food Spending
  • Rural Areas
    • Food constituted 47.04% of the total MPCE compared to 46.4% in 202-223
  • Urban areas
    • Food expenditure accounted for 3.97% up from 3.92% in 2022-23.

Monthly per-Capita Consumption Expenditure (MPCE)

According to experts these changes are within the margin of error not an indication of any trend shift in the market.

• Rise in Overall MPCE
  • Rural MPCE Registered a 9.2 per cent to Rs 4,122.
• Urban MPCE
  • At 8.3 per cent to Rs 6,996 over the same period.
• The figures do not include items received free of charge by households.

“Per-capita consumption expenditure (MPCE)” refers to the average amount of money spent by each individual in a population on consuming goods and services, calculated by dividing the total consumption expenditure of all households by the total population; essentially, it indicates the average spending power of people in a region or country. 

Key points about MPCE:

• Economic indicator:MPCE is a significant economic indicator used to understand the living standards and poverty levels within a population. 
• Calculation:To calculate MPCE, you take the total household consumption expenditure and divide it by the total number of people in the population. 
• Data source:This information is typically gathered through household consumption expenditure surveys conducted by government agencies. 
• Rural vs. Urban:MPCE is often analyzed separately for rural and urban areas to understand disparities in spending patterns. 

Banking/Finance

1. Prevention of Money Laundering Act (PMLA)

Context:

The Enforcement Directorate informed a Division Bench of the Kerala High Court that large-scale money laundering had been carried out in various cooperative banks and societies and Enforcement Case Information Report (ECIR) had been registered in respect of 16 banks and two societies under the Prevention of Money Laundering Act.

Prevention of Money Laundering Act (PMLA) 2002

The Prevention of Money Laundering Act (PMLA) is a law in India that aims to prevent money laundering and confiscate property that is the result of money laundering. The PMLA was enacted in January 2003 and came into effect in July 2005. 

• Objective
  • To curb money laundering in India.
• Primary Objectives
  • Prevent control money laundering.
  • Confiscate seize property derived from laundered money.
  • Address other issues related to money laundering.

What does the PMLA do?

• Defines money laundering
  • The PMLA defines money laundering as the act of concealing, possessing, acquiring, using, or claiming property that is the result of a crime.
• Requires financial institutions to verify client identities
  • The PMLA requires banks, financial institutions, and other intermediaries to verify the identities of their clients and maintain records of their transactions.
• Requires financial institutions to report suspicious transactions
  • The PMLA makes it mandatory for financial institutions to report suspicious transactions to the FIU-IND.
  • The FIU-IND is empowered to impose fines. The PMLA has authorized the Director of the FIU-IND to fine financial institutions that fail to comply with the law.

Amendments

2009-2012: Strengthened provisions against financial crimes.

PMLA Main Provisions

• Obligations of Financial Institutions
  • Banks, Financial Institutions and Intermediaries need to check their clients identities and retain record of every transaction.
• Functions of Enforcement Directorate (ED)
  • Carrying out inquiries about money laundering.
• Adjudicating Authority Appellate Tribunal
  • This body will confirm attachment and confiscation orders, hear appeals against confiscation orders.
• Special Courts for PMLA Cases
  • This court deals with the offenses related to money laundering. It is designated and can be operated under a specified law International Cooperation.
  • The Central Government can make arrangements with foreign countries for their implementing agency.

Section-45 Strict Bail Conditions

• Bail Conditions Twin Test
  • Prima Facie Innocence: Court must consider the accused as not having committed a crime.
  • No Chance of Tampering: Accused will not be engaged in another crime in case he is released.
• Non-Bailable Offense
  • Bail is not a right as of course under PMLA.

2. RBI Files Petition Against Aviom India

Context:

The Reserve Bank of India said it has filed an application with the National Company Law Tribunal, New Delhi bench, for initiation of corporate insolvency resolution process against Aviom India Housing Finance Private Limited.

Reason?

• RBI superseded the board of Aviom India Housing Finance due to concerns regarding governance and payment defaults, appointing a former bank official as the administrator. 

Regulatory Actions Taken

• Formation of Three Member Advisory Committee to assist the Administrator in discharge of his duties.

Legal Framework Insolvency Process

• Insolvency Bankruptcy Rules 2019 allow RBI to appoint an advisory committee.
• The committee assists the administrator in managing the company during the insolvency process.

Superintendence and Control of RBI

RBI is empowered to supersede the board of directors of a financial institution, such as Aviom India Housing Finance, in case there are “significant governance concerns” and “defaults in meeting various payment obligations,” which effectively puts the RBI in control of the company on grounds of bad practices of management and failure to honour financial commitments, which is followed by the appointment of an administrator to run the company under RBI supervision.

The RBI has powers under relevant acts to supersede the boards of financial institutions in case serious governance issues and payment defaults are found.

• Supersession of board
  • In extreme cases, RBI can supersede an existing board of directors and put an administrator. Administrator’s role:
  • The administrator is also required to take steps to redress the governance issues and reverse the payment defaults and even trigger debt restructuring or initiate insolvency proceedings, if necessary.

The Corporate Insolvency Resolution Process (CIRP)

The Corporate Insolvency Resolution Process (CIRP) is a process in India that helps resolve or liquidate a corporate debtor. The Insolvency and Bankruptcy Code (IBC) of 2016 governs the CIRP. 

Implications

• Signals tightening regulatory oversight over financial service providers.
• Highlights RBIs strict approach toward governance failures in housing finance companies.
• May affect lender confidence in smaller housing finance firms thereby increasing scrutiny in the sector.

Source: The Hindu

3. RBI’s OMO Auction

Context:

RBIs first Open Market Operation (OMO) purchase auction received 12 trillion in bids against a notified amount of 20,000 crore. High demand led to cutoff prices being set below secondary market prices
RBI rejected all bids for the 7.59 per cent GS 2029 bond.

RBIs Liquidity Injection Plan

• RBI announced 60,000 crore in OMO purchases over three auctions.
• Aim
  • Inject durable liquidity into the banking system to address liquidity deficit.
  • Current banking system liquidity deficit 255 trillion as of 29 Jan 2025.

What is Open Market Operation (OMO)?

4. Payment and Settlement Systems Act (PSS Act)

Context:

The Reserve Bank of India tightened norms for imposing monetary penalties and compounding offences under the Payment and Settlement Systems Act (PSS Act) to rationalise and consolidate enforcement action by the central bank.

Purpose of Rule Change

• Aim to Rationalize and consolidate the enforcement activities against banks and payment system operators.

Payment and Settlement Systems Act (PSS Act)

The Payment and Settlement Systems Act, 2007 is the law by which payment systems in India are regulated and supervised. The designated authority for these purposes is Reserve Bank of India RBI.

What does PSS Act?

• Regulates and supervises payment systems in India
• Designates the RBI as the authority for regulating payment systems
• Prevents any person other than the RBI to run a payment system without permission

What does RBI regulate?

• All payment systems and instruments and Services provided by banks and non-banks.

What payment systems are covered by the PSS Act?

• Real-time gross settlement (RTGS)
• Electronic Clearing Services (ECS Credit)
• Electronic Clearing Services (ECS Debit)
• Credit cards
• Debit cards
• National Electronic Fund Transfer (NEFT) system
• Immediate Payment Service
• Unified Payments Interface (UPI)

Major Infringements Under PSS Act

• Operation of a payment system without permission.
• Disclosure of restricted information without permission.
• Delay in paying the penalty within the time specified.

New Resurrected Penalty Structure

• Enhanced Maximum Penalty
  • Currently 10 lakh or twice the amount involved whichever is higher.
  • Earlier 15 lakh cap amended under the Jan Vishwas Act 2023 effective from January 22, 2024.
• Continuing Violations
  • 25,000 per day until the violation is rectified.
• Compounding of Offences
  • RBI officers empowered to settle offences subject to the condition that they are not punishable with imprisonment alone or imprisonment and fine.
  • Only material violations will trigger penalties or enforcement actions.
• Implementation Compliance
  • The new framework defines procedures for imposing penalties and determining their quantum.
  • Aimed at stricter compliance within the payments ecosystem.

Facts To Remember

1. U.S. aircraft collides with chopper; 67 feared dead

Divers pulled bodies from the icy waters of Washington’s Potomac river on Thursday after a U.S. military helicopter collided mid-air with a passenger plane carrying 64 people, with officials saying there were likely no survivors.

2. Dubai airport, busiest for world travel, sees 92.3 mn footfall in 2024

Dubai International Airport recorded a historic 92.3 million passengers in 2024, surpassing its previous record from 2018. This achievement highlights Dubai’s recovery from the pandemic and solidifies its position as the world’s busiest airport for international travel, with plans for future expansion. 

3. India confident of getting the better of Togo

Standing on the cusp of World Group 1, the Indian Davis Cup team is cautiously confident of getting the better of Togo over the weekend. And while the players available for the tie are capable enough, captain Rohit Rajpal could not escape questions on the absent ones at the pre-draw media interaction

4. India’s GDP Growth Projected at 6.4% for FY 2025

India’s real GDP is estimated to grow by 6.4 percent in the financial year 2025, and the growth is likely to range between 6.3 and 6.8 percent in the financial year 2026.

5. FM Sitharaman tables Economic Survey 2024-25 in Parliament

India’s real GDP is estimated to grow by 6.4 per cent in the financial year 2025. This was projected in the Economic Survey presented by the Union Finance Minister Nirmala Sitharaman in both the Houses of Parliament today.

6. Budget session to infuse new confidence, energy in attaining Viksit Bharat by 2047: PM Modi

Prime Minister Narendra Modi has expressed confidence that the Budget session of Parliament will infuse new confidence and energy in attaining the goal of Viksit Bharat by 2047. 

7. WHO recommends potassium-enriched salt substitutes to combat hypertension

The World Health Organization (WHO) has released new guidelines recommending the switch from regular table salt to potassium-enriched salt substitutes as part of efforts to combat hypertension and related cardiovascular diseases. 

8. De-dollarisation: US President Trump threatens BRICS with 100% tariffs

United States President Donald Trump has once again warned BRICS nations and threatened them with 100 per cent tariffs on their exports if they try to replace the US dollar as the main currency in global trade. 

9. Niger becomes 1st African country to eliminate onchocerciasis

Niger becomes the first country in the African Region to eliminate onchocerciasis. Niger’s Minister of Public Health, Population and Social Affairs Garba Hakimi officially declared at a ceremony that the country is free of onchocerciasis.