Current Affairs Reverse Engineering – Care (04-12-2024)
| News at a Glance |
| Polity: Lok Sabha passes Banking Laws Amendment Bill |
| Centre proposes 95% government job reservation for locals in Ladakh |
| International: Hamas, Fatah agree to create joint committee to run post-war Gaza |
| Science and Technology: Marburg virus outbreak in Rwanda: ‘Bleeding eye disease’ is a global concern |
| Economy: Developing nations struggle as debt payments hit 20-year high at $1.4 trillion in 2023: World Bank |
Lok Sabha passes Banking Laws Amendment Bill
Source: The Hindu
UPSC Syllabus Relevance: GS2 Polity and Governance, Important Acts and Legislations
Context: Banking Law Amendment Bill
Why in News
- The Lok Sabha on December 3, 2024 passed the Banking Laws (Amendment) Bill, 2024, the first Bill of the Winter Session
Key Provisions of the Bill
- Nomination Flexibility:
- Bank account holders can nominate up to four individuals per account.
- Locker holders will have successive nomination options only.
- Director Tenure and Roles:
- Extends tenure for directors (excluding chairpersons and whole-time directors) in cooperative banks from 8 to 10 years, aligning with the 97th Constitutional Amendment Act, 2011.
- Allows directors of Central Cooperative Banks to serve on State Cooperative Bank boards.
- Redefined “Substantial Interest”:
- Proposes to increase the threshold for defining “substantial interest” for directorships from ₹5 lakh to ₹2 crore.
- Statutory Auditors:
- Grants banks greater freedom in deciding remuneration for statutory auditors.
- Regulatory Compliance Dates:
- Reporting deadlines for banks revised to the 15th and last day of every month instead of the second and fourth Fridays.
- Customer Protection and Convenience:
- Enhances nomination flexibility and aims to strengthen governance and customer safety in banking.
Government’s Perspective
- Finance Minister’s Statement:
The amendments aim to strengthen governance in the banking sector, enhance customer convenience, and ensure stability. The outcomes of the reforms are visible after a decade of policy-driven changes. - Focus on Credit Growth:
PSU banks are expected to introduce new products in 3-4 months to ramp up credit growth.
Criticism and Opposition Views
- Economic Concerns:
- Questions raised about rising imports from China amidst strained relations.
- Concerns over economic stagnation with a GDP growth rate of 5.4% in Q2 FY25 and inflation at 6.21%.
- Warning of stagflation risks.
- Banking Fees and Cybersecurity:
- Criticism over charges for ATM withdrawals and SMS alerts.
- Concerns over vulnerability to cyber fraud, particularly for senior citizens.
- Financial Fraud:
- Proposal for stricter measures to tackle fraud, including mandatory compensation to victims by perpetrators.
Significance of the Bill
- Aims to enhance governance in the banking sector, ensuring safer and more efficient banking services.
- Aligns cooperative bank governance with constitutional amendments.
- Facilitates flexibility in nominations, fostering customer-centric banking policies.
The Bill reflects the government’s push for robust financial governance amidst economic challenges.
| CARE MCQ | UPSC PYQ |
| Q1. With reference to the Banking Laws Amendment Bill, 2024, consider the following statements:
1. The Bill allows bank account holders to nominate up to four individuals per account. 2. It proposes to redefine “substantial interest” for directorships, increasing the threshold from ₹5 lakh to ₹2 crore. 3. Directors of Central Cooperative Banks will no longer be eligible to serve on the board of State Cooperative Banks under the proposed amendments. 4. The tenure of directors in cooperative banks is proposed to be extended from 8 years to 10 years. Which of the statements given above are correct? A) 1 and 3 only |
Q. Which one of the following statements best reflects the issue with Senkaku Islands, sometimes mentioned in the news? (2022)
a. It is generally believed that they are artificial islands made by a country around South China Sea. b. China and Japan engage in maritime disputes over these islands in East China Sea. c. A permanent American military base has been set up there to help Taiwan to increase its defence capabilities. d. Though International Court of Justice declared them as no man’s land, some South-East Asian countries claim them. Ans: B |
| Answer – 1 – B
Explanation –
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Centre proposes 95% government job reservation for locals in Ladakh
Source: The Hindu
UPSC Relevance: GS 2 Polity and Governance
Context: Special provisions for Ladakh
Why in News
- The Union Ministry of Home Affairs (MHA) has proposed 95% reservation in government jobs for locals in Ladakh, one-third reservation for women in hill councils and has agreed to address concerns regarding land-related matters.
Background
- Ladakh has witnessed protests since 2019, after the revocation of Article 370 and its bifurcation into a union territory without a legislature.
- Key demands from Ladakh include statehood, Sixth Schedule inclusion for tribal status, job reservations, and a parliamentary seat each for Leh and Kargil.
Key Proposals by the Union Ministry of Home Affairs (MHA):
- Job Reservations:
- 95% reservation in government jobs for locals.
- Immediate commencement of recruitment for gazetted posts like doctors and engineers.
- Constitutional Safeguards:
- Drafting measures to preserve Ladakh’s land and culture.
- Declaring Urdu and Bhoti as official languages; recommendations for including Purgi, Shina, and Balti.
- Women Empowerment:
- One-third reservation for women in the hill councils of Leh and Kargil.
- Review of Pending Laws:
- Addressing 22 pending laws for empowerment, wildlife protection, and local concerns.
The Four Key Demands of Ladakh
- Following the bifurcation of Jammu and Kashmir into two union territories—Jammu and Kashmir with a legislature, and Ladakh without one—on August 5, 2019, Ladakh lost the constitutional safeguards it previously enjoyed under Article 370. This led to widespread protests starting in 2020.
- For the past five years, the people of Ladakh have been advocating for the following four major demands:
- Statehood for Ladakh:
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- A demand for full-fledged statehood to ensure self-governance and address Ladakh’s unique socio-political and geographical challenges.
- Inclusion in the Sixth Schedule of the Constitution:
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- Inclusion would grant Ladakh tribal status, ensuring the protection of its cultural and land rights under the framework provided for tribal-dominated regions.
- Job Reservation for Locals:
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- Advocates for preferential job opportunities in government employment for Ladakhi residents to address unemployment and economic concerns.
- Separate Parliamentary Seats for Leh and Kargil:
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- A demand for dedicated representation for both Leh and Kargil in Parliament to address the distinct needs and aspirations of the two regions.
Challenges Highlighted by Regional Leaders:
- Lack of Bureaucratic Representation: Absence of local bureaucrats delays project implementation and fund utilization.
- Women’s Representation: Limited participation of women in governance; no women elected in hill councils.
Significance of the Meeting:
- The High-Powered Committee (HPC), chaired by the Minister of State for Home, agreed to work on a four-point agenda with civil society leaders from Leh and Kargil.
- Renewed commitment to address Ladakh’s demands marks a significant step toward resolving long-standing grievances.
Next Steps:
- Discussions on Sixth Schedule inclusion scheduled for January 15, 2025.
- Continuous engagement between the Centre and Ladakh’s leaders to ensure implementation of proposals.
- This meeting reflects the government’s willingness to address Ladakh’s unique socio-cultural and developmental concerns while fostering inclusivity and empowerment.
| CARE MCQ | UPSC PYQ |
Q2 With reference to the proposals regarding Ladakh by the Union Ministry of Home Affairs (MHA), consider the following statements:
Which of the statements given above are correct? A) 1, 3, and 4 only
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Q. Which one of the following regions of India has a combination of mangrove forest, evergreen forest and deciduous forest? (2015)
(a) North Coastal Andhra Pradesh Ans: (d)
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| Answer 2– A
Explanation –
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Hamas, Fatah agree to create joint committee to run post-war Gaza
Source: The Hindu
UPSC Relevance: GS2 International Relations
Context: Hamas and Fatah Agree to Jointly Administer Post-War Gaza
Why in News
- Palestinian factions Hamas and Fatah have agreed to establish a joint committee to manage post-war Gaza.
Overview of the deal
- Palestinian Islamist movement Hamas and Palestinian president Mahmud Abbas’s Fatah party have agreed to create a committee to jointly administer post-war Gaza
- The committee, composed of 10–15 non-partisan figures, will oversee critical areas such as the economy, education, health, humanitarian aid, and reconstruction.
- This agreement, brokered during talks in Cairo and supported by Egypt, Qatar, Turkey, and the United States, aims to unify governance in Gaza under Palestinian leadership.
Key details:
- The committee will administer Gaza’s Rafah crossing on the Egyptian border, the only checkpoint not shared with Israel.
- Fatah’s delegation, led by Azzam al-Ahmad, is seeking final approval from Palestinian President Mahmoud Abbas in Ramallah.
- The initiative follows a fragile ceasefire between Israel and Hezbollah and comes amidst international efforts to end the Gaza conflict.
Background Context
- Hamas-Fatah Rivalry:
Hamas seized control of Gaza in 2007 after clashes with Fatah, which now governs the Palestinian Authority in the West Bank. - Ceasefire and War Impact:
The Gaza war, triggered by Hamas’s October 7, 2023, attack on Israel, resulted in significant civilian casualties on both sides.
Challenges Ahead
- International pressure is mounting to prevent Hamas from playing a role in Gaza’s governance post-war, as Israel and its allies oppose Hamas’s involvement.
- The proposed committee must navigate complex political and security challenges to ensure stability and reconstruction in Gaza.
- Opposition Within Fatah:
- While Hamas and Fatah have agreed to form a joint committee for administering post-war Gaza, significant internal dissent remains within Fatah.
- Some fatah leaders questioned the legitimacy and feasibility of the proposed committee, suggesting it might lead to separate political systems for Gaza (under Hamas) and the West Bank (under Fatah).
- They warned that such a move could entrench existing divisions and harm the prospects for a unified Palestinian governance structure.
- Unified Governance Challenges: Fatah’s stance highlights the complexity of reconciling governance in Gaza and the West Bank.
- The deal faces significant hurdles in bridging longstanding rivalries between the factions.
Conclusion
- The international community, led by the United States and key regional players like Egypt, Qatar, and Turkey, is pushing for a resolution that excludes Hamas from Gaza’s governance, adding further pressure to negotiations.
- The internal resistance within Fatah underscores the difficulties in achieving a unified post-war administration for Gaza amidst geopolitical complexities and internal disagreements.
| CARE MCQ | UPSC PYQ |
Q3. With reference to the post-war administration of Gaza, consider the following statements:
Which of the statements given above is/are correct? A) 1 and 2 only |
Q. Consider the following statements: (2022)
Which of the statements given above is/are correct? a. 1 only b. 2 only c. Both 1 and 2 d. Neither 1 nor 2 Ans: B
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| Answer 3– B
Explanation –
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