29 July, 2021 - Daily Current Affairs Analysis & MCQs - The Daily News Simplified from The Hindu
- Weekly Mains Answer Writing Announcement
- India-US Secretary Level Talk (International Relations)
- PM to roll out Academic Credit Bank (Social Issues)
- Puppetry Practiced in India (History & Culture)
- Relief to Depositors - When Bank under Moratorium (Economy)
- Question for the Day
UPSC Current Affairs: Democratic values bind India, U.S., says Blinken| Page 01
UPSC Syllabus: Mains – GS Paper II – International Relations
Sub Theme: India – US | UPSC
Context: US secretary of the state visited India. In this regard the following statement was given out by Ministry of External affairs about the India – US relations
On Afghanistan -
- In Afghanistan it is essential that peace negotiations are taken seriously by all parties.
- The world wishes to see an independent, sovereign, democratic and stable Afghanistan at peace with itself and with its neighbours but its independence and sovereignty will only be ensured if it is free from malign influences.
- Similarly unilateral imposition of will by any party will obviously not be democratic and can never lead to stability nor indeed can such efforts ever acquire legitimacy.
- The gains to Afghan Civil Society especially on the rights of women, minorities and on social freedoms over the last two decades are self evident; we must collectively work to preserve them.
- Afghanistan must neither be home to terrorism nor resource of refugees.
Indo - pacific
- The Indo Pacific presents a different set of challenges to stability, growth and prosperity.
- Under the aegis of the quad framework, India and US are engaged on maritime security, HADR counterterrorism, connectivity and infrastructure, cyber and digital concerns, COVID-19 response, climate action, education and resilient and reliable supply chains.
- Both focussed on importance of observing international law, rules and norms, including UNCLOS.
Middle East -
Developments in India's extended neighbourhood are also naturally of great consequence to us. Stability in the Gulf where our political, economic and community interests are so visible was a shared concern.
On Myanmar, I conveyed our commitment to its democratic transition as well as our support for ASEAN initiatives.
- India and the United States are currently both members of the UN Security Council. Some of the agenda before the UNSC was also covered in our discussions as also our approach to reform multilateralism.
- Countering terrorism has been the common endeavour for us in the UN Framework, bilaterally and in other bodies. We are convinced that the world will never accept cross border terrorism.
“U.S.-India Climate and Clean Energy Agenda 2030 Partnership.”
- Both the United States and India have set ambitious 2030 targets for climate action and clean energy.
- In its new nationally determined contribution, the United States has set an economy-wide target of reducing its net greenhouse gas emissions by 50–52 percent below 2005 levels in 2030.
- As part of its climate mitigation efforts, India has set a target of installing 450 GW of renewable energy by 2030.
- Through the Partnership, the United States and India are firmly committed to working together in achieving their ambitious climate and clean energy targets and to strengthening bilateral collaboration across climate and clean energy.
UPSC Current Affairs:PM to roll out academic credit bank| Page 08
UPSC Syllabus: GS Paper II- Polity & Governance
Sub Theme: Education | UPSC
Context: Indian students now have Academic Bank of Credit, Liberal education degrees based on self-chosen curriculum on offer. Prime Minister to roll out Academic Bank of Credit to incorporate credit based higher education system.
All the universities in India will now have an Academic Bank of Credits (ABC) which will hold students’ academic accounts or credits. The concept of ABC was recommended under the New Education Policy (NEP) 2020 which allows students to leave a course and join it after a certain time from where they have left it. Through ABC, the movement of students within a university, implying from one course to another and across universities from one institute to another will also be possible. The movement of students will be based on the ‘credits’ they have earned.
Students can also choose the entire course as per their choice. If a student does that without failing in a particular subject domain and earns the total credits required for a UG degree to be awarded by a university then such a degree may be specified as a Bachelor of Liberal Education (B. LE.). The validity of such credits earned will be to a maximum period of seven years or as specified separately by ABC for different subject disciplines to allow the redemption of credits after the date of earning such credits.
ABC will be a bank for academic purposes “on the pattern of a commercial bank for financial purposes with students as account holders to whom, the ABC shall provide a variety of services including credit verification, credit accumulation, credit transfer/redemption and degree authentication”, as per the UGC.
UPSC Current Affairs:Puppetry in India | Page 12
UPSC Syllabus: Prelims: Art & Culture
Sub Theme: Puppetry | UPSC
UPSC Current Affairs:‘Deposits up to ₹5 lakh in ailing banks to be repaid in 90 days’ | Page 16
UPSC Syllabus: Prelims: Economy
Sub Theme: Deposit insurance | UPSC
Recently, the Union cabinet has approved the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill 2021. The new amendment seeks to benefit the depositors of the banks which have been placed under moratorium.
Insurance of the Bank's Deposits
Currently, the Deposit Insurance and Credit Guarantee Corporation (DICGC) provide for insurance cover of Rs 5 lakh per depositor for deposits. In case of Bank failure, depositors can get back a maximum of Rs 5 lakh per account even if their deposits may far exceed Rs 5 lakh.
Coverage of Banks: Commercial banks, Regional rural banks, Local area banks (LABs), Payment Banks, Small Finance Banks and Cooperative banks.
Deposits Covered: Savings, Fixed, Current and Recurring Deposits.
Deposits not Covered: Deposits of Central/State Governments; Inter-Bank Deposits.
Premium: Paid by the banks and hence the cost is not directly borne by the deposit holder.
Union Budget 2020-21: The failure of Banks such as Punjab and Maharashtra Cooperative (PMC) Bank led to increase in the Deposit Insurance Coverage from 1 Lakh to Rs 5 Lakhs. However, there was no timeline fixed for the depositors to avail this insurance.
Banks under Moratorium: Under Section 45 of Banking Regulation Act, the RBI has been empowered to make an application before the Central Government to put a Bank under the Moratorium. Based upon such an application, the Government can place a bank under moratorium.
When a Bank is placed under moratorium, there are certain restrictions on withdrawal of deposits. For example, both Yes Bank and Laxmi Vilas Bank were placed under moratorium and initially the depositors were allowed to withdraw only up to Rs 50,000. Such a restriction remained until these Banks were finally rescued.
Yes Bank was taken over by consortium of lenders led by SBI. Similarly, Laxmi Vilas Bank was taken over by DBS Bank. So, the depositors in these two Banks had to wait until the Banks got rescued. They were unable to avail the deposit insurance of Rs 5 lakhs when the banks were placed under moratorium.
Union Budget 2021-22: Announcement to enable the depositors of avail deposit insurance in the event of a bank being placed under moratorium.
Recent Cabinet decision: Cabinet approved the Deposit Insurance and Credit Guarantee Corporation (Amendment) Bill 2021. The new amendment enables the depositors to withdraw up to Rs 5 lakh within 90 days upon placing a Bank under moratorium.