CARE 3rd October 2024 Current Affairs

Current Affairs Reverse Engineering – CARE (03-10-2024)

News at a Glance
Environment and Ecology: Govt notifies new labelling rules for green products
Uttarakhand’s Terai Forest yields first-ever honey badger recording on camera
Science and Technology: Tsetse fly present in 34 countries in Africa, confirms FAO atlas
Economy: New SEBI rules to curb F&O frenzy, aim to protect small investors
Centre reconstitutes Monetary Policy Committee ahead of RBI rate review
Polity and Governance: 10 years of Swachh Bharat Mission

Govt notifies new labelling rules for green products

Source: Indian Express

https://indianexpress.com/article/india/govt-notifies-new-labelling-rules-for-green-products-9599274/

UPSC Syllabus Relevance: GS 3 Environment and Ecology

Context: Ecomark Rules, 2024

Why in News

  • The Union Environment Ministry’s notification of the Ecomark Rules, 2024, aligns with India’s push for sustainable development, including Mission LIFE (Lifestyle for Environment).

What is Ecomark?

  • Launched in 1991, the Ecomark scheme is a voluntary and non-binding initiative that promotes the labelling of household and consumer products based on their environmental and quality standards.
  • It provides consumers with a way to identify products that are less harmful to the environment.
  • Objective: The Ecomark label aims to encourage consumers to make informed, sustainable choices and motivate manufacturers to adopt eco-friendly practices.
  • The Ecomark Rules, 2024, have been introduced to modernize the scheme in line with current environmental practices and align with the Mission LIFE (Lifestyle for Environment) initiative, which focuses on promoting sustainability in daily life.

Key Features of the Ecomark Rules, 2024

  • Voluntary Nature: Participation in the scheme remains voluntary. This means that companies are not legally bound to seek the Ecomark certification but can apply for it to signal their commitment to sustainable practices.
  • Focus on Environmental Parameters:
    The rules emphasize the environmental impact of products. Products must meet criteria that include:

    1. Minimizing or eliminating waste generation and environmental emissions.
    2. Using recycled materials or creating products that are recyclable.
    3. Reducing energy consumption, particularly reliance on non-renewable sources.
    4. Limiting the use of environmentally harmful chemicals or materials.

This ensures that products labelled with the Ecomark contribute to pollution reduction, resource conservation, and energy efficiency.

Specific Criteria for Product Categories:

  • The 2024 rules establish detailed environmental criteria for 17 product categories, including:
    1. Paints and coatings: Minimizing the use of harmful chemicals.
    2. Cosmetics: Reducing chemical pollutants and promoting natural ingredients.
    3. Batteries: Ensuring safe disposal and reducing toxic emissions.
    4. Edible oils, tea, and coffee: Promoting organic and sustainable farming practices.
    5. Toilet soaps and detergents: Limiting harmful chemicals that affect water bodies.
    6. Paper products: Using recycled content and sustainable sources of raw materials.
    7. Coir and natural fibers: Reducing the use of synthetic materials and encouraging biodegradable options.
  • This comprehensive approach ensures that each product type is evaluated according to its specific environmental footprint.

Alignment with Bureau of Indian Standards (BIS):

  • Products that apply for the Ecomark must also comply with BIS certification. This adds an extra layer of quality and safety assurance, ensuring that eco-friendly products also meet established performance standards.
  • Compliance with Pollution Norms:
    The rules also specify that all products under the Ecomark scheme must adhere to the pollution control norms set by the Central Pollution Control Board (CPCB).

Application and Verification Process

  • Application Process: Companies that wish to participate in the Ecomark scheme can apply for the label through the CPCB. This process remains voluntary, meaning companies can opt to seek certification as part of their corporate social responsibility (CSR) or sustainability initiatives.
  • Verification and Approval: The CPCB entrusts the task of verifying Ecomark applications to qualified and registered agencies with expertise in environmental matters. These agencies evaluate whether a product meets the environmental and sustainability criteria before granting the label.

  Advantages of the Ecomark Scheme

  • Consumer Empowerment: With growing environmental awareness, consumers are increasingly looking for sustainable and eco-friendly products. The Ecomark label helps them make informed choices by identifying products that have a lower environmental impact.
  • Nudging Companies Towards Sustainability:
    By providing a recognized label for environmentally friendly products, the Ecomark scheme encourages companies to adopt sustainable practices, such as reducing waste, conserving resources, and minimizing emissions.
  • Supporting Government Initiatives:
    The scheme complements the government’s broader environmental goals, such as those outlined in Mission LIFE, which encourages individuals and companies to adopt environmentally responsible behavior.
  • Contributing to Global Sustainability Goals:
    The Ecomark scheme aligns with the United Nations Sustainable Development Goals (SDGs), particularly SDG 12 on Responsible Consumption and Production. By promoting eco-friendly products, the scheme helps India meet its international sustainability commitments.

Challenges and Considerations

  • Voluntary Nature: While the scheme is beneficial, its voluntary nature means that not all companies will choose to participate. This limits the potential scope of the scheme in influencing widespread change.
  • Awareness and Consumer Adoption: For the scheme to be truly effective, there must be widespread awareness among consumers. The government and environmental organizations may need to run campaigns to educate people about the benefits of choosing Ecomark-labelled products.
  • Verification and Compliance Costs: Companies may be deterred by the cost of verification and compliance. Small and medium-sized enterprises (SMEs), in particular, might find it challenging to meet the environmental standards due to financial constraints.

Lifestyle for the Environment (LiFE) Movement?

  • The idea of LiFE was introduced by India during the 26th United Nations Climate Change Conference of the Parties (COP26) in Glasgow in 2021.
  • The idea promotes an environmentally conscious lifestyle that focuses on ‘mindful and deliberate utilisation’ instead of ‘mindless and wasteful consumption.
  • With the launch of the Mission, the prevalent “use-and-dispose” economy governed by mindless and destructive consumption will be replaced by a circular economy, defined by conscious and deliberate consumption.
CARE MCQ  UPSC PYQ
Q1. With reference to the Ecomark Rules, 2024, consider the following statements:

1.  The Ecomark scheme is a mandatory labelling initiative for consumer and household products based on their environmental impact.

2.  Products applying for the Ecomark must comply with Bureau of Indian Standards (BIS) certification and pollution control norms.

3.  The scheme covers specific product categories like paints, cosmetics, batteries, edible oils, and toilet soaps.

Which of the statements given above is/are correct?

(A) 1 and 2 only
(B) 2 and 3 only
(C) 1 and 3 only
(D) 1, 2, and 3

 

Q. Regarding “carbon credits”, which one of the following statements is not correct? (2011)

(a) The carbon credit system was ratified in conjunction with the Kyoto Protocol

(b) Carbon credits are awarded to countries or groups that have reduced greenhouse gases below their emission quota

(c) The goal of the carbon credit system is to limit the increase of carbon dioxide emission

(d) Carbon credits are traded at a price fixed from time to time by the United Nations Environment Programme.

Ans: (d)

 

Answer – 1-B

Explanation –

·        Statement 1 is incorrect because the Ecomark scheme is voluntary, not mandatory.

·        Statement 2 is correct as the products applying for Ecomark need to meet BIS standards and pollution control norms.

·       Statement 3 is correct since the scheme covers product categories such as paints, cosmetics, batteries, edible oils, and toilet soaps, among others.

  • Therefore, option B is the correct answer.

 Uttarakhand’s Terai forest yields first-ever honey badger recording on camera

Source: Down To Earth

https://www.downtoearth.org.in/wildlife-biodiversity/uttarakhands-terai-forest-yields-first-ever-honey-badger-recording-on-camera

UPSC Syllabus Relevance:  GS 3-Envrionement and Ecology

Context: Honey badger

Why in news

  • The recent capture of the honey badger (Mellivora capensis) on camera in the Terai East Forest Division (TEFD) of Uttarakhand is a noteworthy development for biodiversity conservation in India.

Honey Badger (Mellivora capensis)

  • The honey badger, scientifically known as Mellivora capensis, is a fascinating and resilient mammal known for its tenacity and unique behaviors.
  • Taxonomy and Classification
    • Family: Mustelidae (the weasel family)
    • Order: Carnivora
    • Genus: Mellivora
    • Species: M. capensis
  • Size: Honey badgers are relatively small, measuring about 60 to 90 cm (24 to 35 inches) in length, with a weight ranging from 9 to 16 kg (20 to 35 lbs).
  • Appearance: They have a stocky build, short legs, and a broad head. Their most distinctive feature is the thick, coarse fur with a striking pattern: they have a grayish-black body with a lighter, often cream-colored stripe that runs from the head to the tail.
  • Claws: Honey badgers possess powerful, curved claws that are well-adapted for digging and climbing.
  • Nocturnal: These animals are primarily nocturnal, being more active during the night when they hunt and forage for food.
  • Communication: Honey badgers communicate through various vocalizations, including growls, snarls, and hisses. They may also use scent marking to establish territory.

Habitat

  • Geographical Range: Honey badgers are found in various habitats across Africa, the Middle East, and parts of Asia, including India and Iran. They typically inhabit savannas, forests, and mountainous regions.
  • Adaptability: They are highly adaptable animals and can thrive in diverse environments, including semi-arid and humid areas.
  • Omnivorous Diet: Honey badgers have a diverse diet that includes:
    • Small mammals (rodents, birds)
    • Reptiles (snakes and lizards)
    • Insects (especially bees and their larvae)
    • Fruits and honey (their name derives from their affinity for honey)
  • Foraging Skills: They are known for their exceptional digging skills and are capable of breaking into beehives to access honey, which can sometimes result in stings. Their thick skin provides some protection against bee stings and snake bites.

Ecological Role of the Honey Badger 

  • Taxonomy and Distribution:
    • The honey badger belongs to the family Mustelidae, which includes weasels, otters, and ferrets. It is distributed across parts of Africa, Asia, and the Middle East, with sporadic sightings in India, particularly in forested regions.
    • This species is renowned for its adaptability and resilience, capable of thriving in various habitats, including forests, savannas, and deserts.
  • Diet and Behavior:
    • Honey badgers are omnivorous, feeding on a diverse diet that includes small mammals, reptiles, insects, fruits, and honey. Their ability to consume honey makes them unique; they are known for raiding beehives, which has contributed to their local name.
    • Their powerful claws enable them to dig burrows for shelter and unearth prey, showcasing their remarkable foraging skills.
  • Role in Ecosystem:
    • As a predator, the honey badger plays a crucial role in controlling populations of small animals and pests, contributing to the balance of the ecosystem.
    • By preying on rodents and insects, they help mitigate crop damage and maintain agricultural productivity. Additionally, their waste products enrich the soil, fostering plant growth and promoting overall biodiversity.

Significance of the Discovery in Uttarakhand

  • First Documentation in TEFD:
    • The honey badger was photographed on January 7, 2024, near the Sharda River Canal in the Surai range, marking the first confirmed sighting of this species in the TEFD. This area is part of the Terai Arc Landscape, characterized by its unique mix of wetlands, grasslands, and forests.
    • The research led by Prashant Kumar from the Uttarakhand Forest Department adds to our understanding of the species’ distribution in India and highlights the importance of the TEFD as a potential habitat for various wildlife species.
  • Implications for Biodiversity:
    • The discovery underscores the ecological significance of the TEFD, which supports diverse wildlife, including tigers, elephants, and leopards. The presence of honey badgers indicates a healthy and functioning ecosystem capable of supporting a variety of species.
    • It also highlights the potential for discovering more rare and elusive species in this region, encouraging further exploration and study of the biodiversity present in the forests of Uttarakhand.

Conservation Status and Legal Protection Wildlife (Protection) Act of 1972:

    • The honey badger is listed under Schedule I of the Wildlife (Protection) Act of 1972, granting it the highest level of legal protection in India. This classification prohibits hunting and trade, ensuring that any harmful activities against the species are subject to severe penalties.
    • The legal framework aims to protect endangered species and promote biodiversity conservation, but effective enforcement remains a challenge in many regions.
  • International Union for Conservation of Nature (IUCN):
    • The honey badger is classified as “Least Concern” on the IUCN Red List, suggesting that it is not currently at immediate risk of extinction globally. However, local populations can be vulnerable due to habitat loss and human activities.
    • Its rarity in India and the lack of comprehensive data regarding its habitat preferences and behavior indicate a need for targeted research efforts to better understand its ecology.

Threats to Habitat and Conservation Challenges

  • Human Activities:
    • The TEFD faces significant pressures from agricultural expansion, poaching, and deforestation, which threaten the delicate balance of its ecosystem. These activities can lead to habitat degradation, affecting the survival of many species, including the honey badger.
    • Encroachment on wildlife habitats disrupts the natural corridors necessary for species movement, leading to increased human-wildlife conflict and further endangering wildlife.
  • Importance of Wildlife Corridors:
    • The TEFD serves as a crucial link between significant wildlife areas, including the Nandhaur Wildlife Sanctuary and Pilibhit Tiger Reserve. These corridors facilitate the movement of various species, ensuring genetic diversity and ecological stability.
    • Protecting these corridors is vital for maintaining the health of the ecosystem and preventing fragmentation, which can lead to isolation of wildlife populations and increased vulnerability to extinction.

Research and Monitoring Efforts

  • Opportunities for Further Study:
    • The sighting of the honey badger presents a unique opportunity for researchers to study its behavior, habitat preferences, and ecological role within the TEFD. Understanding its interactions with other species and its responses to environmental changes will be crucial for effective conservation strategies.
    • Ongoing monitoring and research will help conservationists gather valuable data on the honey badger’s population dynamics and ecological needs, contributing to the development of informed management plans.
  • Call for Increased Protection:
    • Following the discovery, conservationists emphasize the need for enhanced protection measures for the TEFD and its wildlife. This includes strengthening patrolling efforts to prevent poaching, habitat encroachment, and other illegal activities that threaten biodiversity.
    • Collaborative efforts involving local communities, government agencies, and non-governmental organizations will be essential for promoting sustainable practices that benefit both wildlife and human populations.
CARE MCQ  UPSC PYQ
Q2. Which of the following statements is true regarding the conservation status of the honey badger in India?

  1. The honey badger is listed as “Least Concern” on the International Union for Conservation of Nature (IUCN) Red List.
  2. The honey badger is protected under Schedule I of the Wildlife (Protection) Act of 1972 in India.
  3. Honey badgers are commonly found in urban areas across India.

Select the correct answer using the codes given below:

A) 1 and 2 only
B) 2 and 3 only
C) 1 and 3 only
D) 1, 2, and 3

Q. The black cotton soil of India has been formed due to the weathering of (2021)

(a) brown forest soil
(b) fissure volcanic rock
(c) granite and schist
(d) shale and limestone

Ans: (b)

 

Answer 2-A

Explanation

·       Statement 1 is correct. The honey badger (Mellivora capensis) is indeed categorized as “Least Concern” on the IUCN Red List. This means that, overall, it is not currently facing significant threats to its population.

·       Statement 2 is correct. The honey badger is listed under Schedule I of the Wildlife (Protection) Act of 1972, which affords it the highest level of legal protection in India. This status implies that hunting, poaching, or trade of honey badgers is illegal.

·       Statement 3 is incorrect. Honey badgers are generally not commonly found in urban areas. They are more often spotted in forested regions and natural habitats. While they may occasionally venture near human settlements, they primarily inhabit wild areas and are elusive in nature.

·       Therefore, option A is the correct answer.

 Tsetse fly present in 34 countries in Africa, confirms FAO atlas

Source: Down-to-earth

https://www.downtoearth.org.in/africa/tsetse-fly-present-in-34-countries-in-africa-confirms-fao-atlas

UPSC Syllabus Relevance: GS 3- Science and Technology

Context: Tsetse flies

Why in News

  • Tsetse flies are present in 34 African countries, according to a new atlas published by Food and Agriculture Organization of the United Nations (FAO).

Tsetse flies Overview:

  • Tsetse flies (genus Glossina) are significant vectors of trypanosomiasis, a disease caused by unicellular parasites that have severe implications for human health and livestock productivity in Africa.
  • The recent atlas published by the Food and Agriculture Organization of the United Nations (FAO) provides crucial insights into the distribution of these flies across 34 African countries, representing a major advancement in understanding their ecological impact.

Key Facts About Tsetse Flies

  • Distribution: Tsetse flies are present in 34 African countries, confirmed through a new atlas, marking the first significant mapping of their distribution in over 50 years.
  • Disease Transmission: These flies are known for transmitting trypanosomes, which cause sleeping sickness in humans and nagana (African animal trypanosomiasis) in livestock, leading to substantial economic losses in agriculture.
  • Health Impact: Although sleeping sickness cases have declined to below 2,000 annually and are no longer considered a public health emergency, the disease continues to threaten livestock health, affecting food security and livelihoods.

Importance of the New FAO Atlas

  • Data Collection: The atlas utilizes data from 669 scientific papers covering a 31-year period (1990-2020), incorporating both Google Earth geolocation data and field entomology studies.
  • Site Analysis: A total of 7,386 sites were analyzed, providing a comprehensive view of the tsetse fly presence across diverse geographical areas, from Northern Senegal to South Africa.
  • Mapping Initiatives: The new maps developed by the FAO cover 26 out of 31 recognized species and subspecies of tsetse flies, helping to identify areas most affected by trypanosomiasis.

Implications for Veterinary Practices and Policy

  • Resource for Stakeholders: The atlas serves as a critical resource for veterinary practitioners and policymakers in affected countries, allowing for better management and targeted interventions against trypanosomiasis.
  • International Collaboration: The information gathered will assist global health organizations, such as the World Health Organization, in implementing strategies to combat both sleeping sickness and animal trypanosomiasis effectively.

Challenges and Gaps

  • Lack of Data: There is a notable absence of published data on tsetse flies in countries like Burundi, Guinea-Bissau, Liberia, Sierra Leone, and Somalia, indicating potential under-reporting of the issue in these regions.
  • Limited Information for Certain Regions: Data is also sparse for Angola, Congo, the Democratic Republic of Congo, and South Sudan, which necessitates further research and monitoring efforts.
CARE MCQ  UPSC PYQ
Q3. Which of the following statements regarding tsetse flies and their impact in Africa is/are correct?

  1. Tsetse flies are vectors for trypanosomiasis, which affects both humans and livestock.
  2. The recent FAO atlas is the first significant mapping of tsetse fly distribution in over 50 years.
  3. Tsetse flies are found in all African countries, including North Africa.
  4. Sleeping sickness is currently considered a major public health issue in Africa.

Select the correct answer using the codes given below:

A) 1 and 2 only
B) 2 and 3 only
C) 1 and 4 only
D) 1, 2, and 3 only

Q. If you walk through countryside, you are likely to see some birds stalking alongside the cattle to seize the insects, disturbed by their movement through grasses. (2014)

Which of the following is/are such bird/birds?

1) Painted Stork

2) Common Myna

3) Black-necked Crane

Select the correct answer using the code given below.

a)       1 and 2

b)      2 only

c)       2 and 3

d)      3 only

Ans: b

 

Answer 3-A

Explanation

·        Statement 1: Correct. Tsetse flies are indeed vectors of trypanosomiasis, affecting both humans (causing sleeping sickness) and livestock (leading to nagana).

·        Statement 2: Correct. The recent FAO atlas represents the first significant mapping of tsetse fly distribution in over 50 years.

·        Statement 3: Incorrect. Tsetse flies are not present in all African countries; they are reported in only 34 countries. Moreover, historically, North Africa has been free of tsetse flies.

·       Statement 4: Incorrect. Although sleeping sickness cases have decreased significantly and are no longer considered a public health emergency, the disease still poses a threat to livestock health.

·       Therefore, option A is the correct answer.  

­­­New SEBI rules to curb F&O frenzy, aim to protect small investors

Source: Indian Express

https://indianexpress.com/article/explained/explained-economics/new-sebi-rules-to-curb-fo-frenzy-aim-to-protect-small-investors-9600905/

UPSC Relevance: GS3- Economy

Context: New Rules for Equity Index Derivatives

Why in News

  • SEBI has released a set of six measures to strengthen the equity index derivatives — also known as equity futures & options (F&O) — framework.

Overview

  • The Securities and Exchange Board of India (SEBI) has released a series of six measures aimed at strengthening the equity index derivatives market (futures and options).
  • These steps come in response to growing concerns about the exponential rise in trading volumes, where most retail investors face losses.
  • The measures focus on curbing speculation, ensuring investor protection, and maintaining market stability.

Recalibration of Contract Size for Index Derivatives

  • Change: The minimum contract size for index derivatives has been increased from Rs 5-10 lakh to Rs 15 lakh. SEBI mandates that at the time of review, the contract value should range between Rs 15-20 lakh.
  • Implication: This increases the entry barrier, reducing speculative trading by small retail investors. It ensures that only participants capable of managing appropriate levels of risk participate in the market. Retail investors in Tier 2 and Tier 3 cities may need to rethink their strategies, as larger contracts might deter them from participating in index derivatives.

Upfront Collection of Options Premium

  • Change: SEBI now requires options buyers to pay the premium upfront. This rule comes into effect on February 1, 2025.
  • Implication: This move reduces the undue leverage that could otherwise be used for intra-day speculative positions. It promotes disciplined trading by ensuring that positions are backed by sufficient collateral. This will prevent investors from taking over-leveraged risks and mitigate the chances of defaults due to excessive speculation.

Rationalization of Weekly Index Derivatives Products

  • Change: SEBI has directed that each exchange can offer only one benchmark index derivative with a weekly expiry, effective November 20, 2024.
  • Implication: Limiting the number of weekly expiring index derivatives curbs speculative trading that contributes to market volatility on expiry days. By restricting multiple expiry contracts, SEBI aims to prevent frequent price fluctuations and promote a more stable market environment.

Intra-Day Monitoring of Position Limits

  • Change: SEBI has introduced intra-day monitoring of position limits for equity index derivatives, effective April 1, 2025.
  • Implication: This rule enhances real-time compliance with position limits, ensuring that traders do not exceed their permissible positions during the trading day. This proactive measure will help prevent excessive speculation and promote orderly trading behaviour throughout the day, especially during expiry times.

Removal of ‘Calendar Spread’ Treatment on Expiry Day

  • Change: SEBI will remove the benefit of ‘calendar spread’ (offsetting positions across different expiry dates) on expiry day for contracts expiring that day, starting from February 1, 2025.
  • Implication: The removal of calendar spread treatment will encourage early rollovers, avoiding last-minute speculative actions. This will ease market volatility on expiry days and reduce price distortions caused by abrupt changes in the ‘basis’ (difference between futures and stock prices).

Increase in ‘Tail Risk’ Coverage on Expiry Day

  • Change: SEBI has increased the Extreme Loss Margin (ELM) by an additional 2% for short options contracts on expiry days.
  • Implication: This increased margin requirement acts as a buffer against abrupt and volatile market moves, especially on expiry days when short options positions could result in large losses. The additional margin coverage ensures that participants have more capital at stake, helping to protect the market from sudden crashes or spikes.
 CARE MCQ  UPSC PYQ
Q4. With reference to SEBI’s recent measures to strengthen the equity index derivatives framework, consider the following statements:

1.  SEBI has increased the minimum contract size for index derivatives to Rs 15 lakh at the time of introduction in the market.

2.  SEBI has mandated that options buyers must pay the premium upfront starting from February 1, 2025.

3.  SEBI has allowed stock exchanges to offer multiple benchmark index derivatives contracts with weekly expiries.

4.  Intra-day monitoring of position limits in equity index derivatives will be enforced starting from April 1, 2025.

Which of the statements given above is/are correct?

(A) 1 and 3 only
(B) 1, 2, and 4 only
(C) 2 and 3 only
(D) 1, 2, 3, and 4

Q. Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly? (2019)

(a) Certificate of Deposit
(b) Commercial Paper
(c) Promissory Note
(d) Participatory Note

Ans: (d)

 

Answer 4– B

Explanation –

·        Statement 1 is correct as SEBI has increased the minimum contract size for index derivatives to Rs 15 lakh.

·        Statement 2 is correct because options buyers are required to pay the premium upfront from February 1, 2025.

·       Statement 3 is incorrect as SEBI has directed stock exchanges to offer only one benchmark index derivative with a weekly expiry.

·       Statement 4 is correct as intra-day monitoring of position limits will begin on April 1, 2025.

·       Therefore, option B is the correct answer.

Centre reconstitutes Monetary Policy Committee ahead of RBI rate review

Source: Indian Express

https://indianexpress.com/article/business/economy/reserve-bank-of-india-rbi-monetary-policy-review-mpc-interest-rate-9598824/

UPSC Syllabus Relevance: GS3- Economy

Context: Monetary Policy Committee

Why in News

  • The central government reconstituted the Monetary Policy Committee (MPC) ahead of the monetary policy review of the Reserve Bank of India (RBI).

Monetary Policy Committee (MPC) Overview:

  • The MPC is a six-member body responsible for deciding the policy interest rate (repo rate) that is needed to achieve the inflation target.
  • It was established as part of an amendment to the RBI Act in 2016.
  • The MPC consists of:
    • The RBI Governor (as the Chairperson),
    • The Deputy Governor in charge of monetary policy,
    • An officer from the RBI nominated by the Central Board, and
  • Three external members appointed by the central government.
  • The main objective of the MPC is to maintain price stability while also focusing on economic growth, with a specific inflation target range of 2-6%.

Reconstitution of the MPC:

The government has appointed three new external members for a period of four years:

  • Ram Singh (Delhi School of Economics),
  • Saugata Bhattacharya (Economist, formerly with Axis Bank),
  • Nagesh Kumar (Institute for Studies in Industrial Development).

These appointments are critical as they bring fresh perspectives on monetary policy and are expected to influence decision-making, especially given the recent dissenting views within the MPC.

Role of External Members:

  • The external members of the MPC play an important role in providing independent views on monetary policy decisions.
  • Their expertise in economics, banking, and finance allows them to contribute to discussions on inflation control, growth, and overall economic stability.

RBI’s Monetary Policy Framework:

  • The RBI’s monetary policy framework, especially under the flexible inflation targeting regime, aims to manage inflation while supporting growth. The repo rate—the rate at which the RBI lends to commercial banks—serves as the key instrument for this purpose.
  • Since 2016, the MPC has operated under a legislative mandate to maintain inflation within the target range of 2-6%, with a long-term goal of bringing it closer to 4% on a sustained basis.
  • The MPC determines the repo rate based on macroeconomic conditions, particularly inflation trends.

Repo Rate and Inflation:

  • The repo rate has remained at 5% for nine consecutive monetary policy reviews, and it is expected to remain unchanged in the October 2024 review. This reflects the RBI’s cautious stance amid inflationary concerns, particularly due to high food prices.

Impact of the MPC’s Decisions:

  • The decisions made by the MPC directly impact interest rates in the broader economy. By setting the benchmark interest rate, the MPC influences borrowing costs, savings rates, and overall economic activity.
  • This makes its decisions critical for controlling inflation, promoting growth, and ensuring economic stability.

Dissenting Views:

  • The reconstitution of the MPC also signals the possibility of changes in the decision-making process.
  • In the August 2024 monetary policy meeting, for example, the MPC saw dissent among members, with a 4:2 majority voting to keep the repo rate unchanged.
  • New members may bring different perspectives, which could affect future policy decisions.

Future Outlook:

  • The RBI is expected to maintain its cautious approach as inflation remains a key concern.
  • The new members’ input will be crucial in shaping the monetary policy stance, balancing inflation control with the need to support growth.
CARE MCQ  UPSC PYQ
Q5. Consider the following statements regarding the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI):

  1. The MPC is responsible for setting the repo rate in India.
  2. The MPC consists of three external members appointed by the central government.
  3. The RBI Governor serves as the ex-officio chairperson of the MPC.
  4. The primary objective of the MPC is to maintain a fixed exchange rate for the Indian Rupee.

Which of the following is correct?

A) Statements 1, 2, and 3 are correct; Statement 4 is incorrect.
B) Statements 1 and 3 are correct; Statements 2 and 4 are incorrect.
C) Statements 1 and 2 are correct; Statements 3 and 4 are incorrect.
D) All statements are incorrect.

 

Q. Which of the following statements is/are correct regarding the Monetary Policy Committee (MPC)? (2017)

  1. It decides the RBI’s benchmark interest rates.
  2. It is a 12-member body including the Governor of RBI and is reconstituted every year.
  3. It functions under the chairmanship of the Union Finance Minister.

Select the correct answer using the code given below:

(a) 1 only
(b) 1 and 2 only
(c) 3 only
(d) 2 and 3 only

Ans: (a)

 

Answer 5-A

Explanation

·        Statement 1 is Correct. The MPC is responsible for setting the repo rate.

·        Statement 2 is Correct. The MPC consists of three external members appointed by the central government.

·        Statement 3 is Correct. The RBI Governor is indeed the ex-officio chairperson of the MPC.

·       Statement 4 is Incorrect. The primary objective of the MPC is to maintain price stability and not to maintain a fixed exchange rate for the Indian Rupee.

·       Therefore, option A is the correct answer.  

­­­10 years of Swachh Bharat Mission

Source: Indian Express

https://indianexpress.com/article/explained/10-years-of-swachh-bharat-mission-its-aims-and-status-on-key-targets-9598732/

UPSC Relevance: GS2- Polity and Governance

Context: Swachh Bharat Mission

Why in News

  • Swachh Bharat Mission completes 10 years on October 2.

Swachh Bharat Mission (SBM)

  • The Swachh Bharat Mission (SBM) was launched by Prime Minister Narendra Modi on October 2, 2014, with the goal of making India “Open Defecation Free” (ODF) by October 2, 2019, in tribute to Mahatma Gandhi’s 150th birth anniversary.
  • The mission aimed to achieve universal sanitation coverage, build individual household and community toilets, and promote solid and liquid waste management across both rural and urban areas.
  • It also sought to bring about behavioral changes towards cleanliness.

Structure of SBM

The mission was divided into two components:

  • SBM-Gramin (SBM-G) for rural areas, managed by the Ministry of Drinking Water and Sanitation.
  • SBM-Urban (SBM-U) for urban areas, managed by the Ministry of Housing and Urban Affairs.

Key Focus Areas

  • Toilet Construction: Building individual and community toilets to end open defecation.
  • Solid Waste Management (SWM): Managing solid waste, including segregation at source, door-to-door collection, and treatment.
  • Behavioral Change Campaigns: Leading campaigns to foster long-term cleanliness habits among the public.

Achievements of SBM (2014–2019)

  • ODF Declaration: By October 2, 2019, PM Modi declared 6 lakh villages and nearly all urban India (except some cities in West Bengal) as Open Defecation Free (ODF).
  • Toilet Construction: Over 10 crore toilets were built across the country under SBM. In urban areas, 66 lakh individual toilets were constructed against a target of 59 lakh.
  • Financial Assistance: The financial support for toilet construction increased from Rs. 10,000 (under the UPA’s Nirmal Bharat Abhiyan) to Rs. 12,000 under SBM. For SBM-G, Rs. 57,469 crore was released, while SBM-U had a budget of Rs. 62,009 crore.

SBM 2.0

  • Launch: Launched in 2021 after the successful completion of the first phase of SBM.
  • Key Focus Areas: Garbage-free cities, faecal sludge management, plastic waste management, and greywater management.
  • Legacy Landfills: Efforts to clear 2,400 legacy landfills by 2025-2026, of which 30% of the area has been cleared so far, with 41% of the waste remediation goal met.

Impact of SBM

  • Health Impact: The World Health Organization (WHO) estimated that the SBM could prevent 3 lakh deaths due to diarrhoea and malnutrition by 2019. A study published in Nature (September 2023) found that SBM may have contributed to 60,000–70,000 fewer infant deaths annually from 2014 to 2020.
  • Economic Impact: SBM improved sanitation infrastructure and public health, leading to long-term economic benefits. It also created jobs in sanitation services and solid waste management.

Challenges & Gaps

  • Legacy Waste Clearance: The goal of clearing legacy landfills is still underachieved, with only 30% of the area cleared so far.
  • Solid Waste Segregation: While 97% of municipal wards have door-to-door waste collection, 90% of them are reported to have 100% segregation at source, but implementation and monitoring continue to pose challenges.
 CARE MCQ  UPSC PYQ
Q6. With reference to the Swachh Bharat Mission (SBM), which of the following statements is/are correct?

1.  Swachh Bharat Mission was launched on October 2, 2014, with the aim of making India Open Defecation Free (ODF) by October 2, 2019.

2.  SBM-Gramin is implemented by the Ministry of Housing and Urban Affairs, while SBM-Urban is managed by the Ministry of Drinking Water and Sanitation.

3.  Under SBM, the financial assistance for constructing a toilet increased from Rs 10,000 to Rs 12,000.

4.  SBM 2.0 focuses on making cities garbage-free and managing faecal sludge and greywater.

Select the correct answer using the codes given below:

A) 1 and 2 only
B) 1, 3, and 4 only
C) 2 and 3 only
D) 1, 2, 3, and 4

Q. As per the Solid Waste Management Rules, 2016 in India, which one of the following statements is correct? (2019)

(a) Waste generator has to segregate waste into five categories.

(b) The Rules are applicable to notified urban local bodies, notified towns and all industrial townships only

(c) The Rules provide for exact and elaborate criteria for the identification of sites for landfills and waste processing facilities.

(d) It is mandatory on the part of the waste generator that the waste generated in one district cannot be moved to another district.

Ans: (c)

 

Answer 6-B

Explanation

·        Statement 1 is correct: The SBM was launched on October 2, 2014, with the target of making India Open Defecation Free (ODF) by October 2, 2019.

·        Statement 2 is incorrect: SBM-Gramin is implemented by the Ministry of Drinking Water and Sanitation, and SBM-Urban is managed by the Ministry of Housing and Urban Affairs.

·        Statement 3 is correct: The financial assistance for constructing a toilet increased from Rs 10,000 under the Nirmal Bharat Abhiyan to Rs 12,000 under SBM.

·       Statement 4 is correct: SBM 2.0 focuses on making cities garbage-free and includes faecal sludge, plastic waste, and greywater management.

·       Therefore, option B is the correct answer.

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