InstaLinks help you think beyond the issue but relevant to the issue from UPSC prelims and Mains exam point of view. These linkages provided in this ‘hint’ format help you frame possible questions in your mind that might arise(or an examiner might imagine) from each current event. InstaLinks also connect every issue to their static or theoretical background. This helps you study a topic holistically and add new dimensions to every current event to help you think analytically.
Table of Contents:
GS Paper 2:
1. Indian Banks’ Association (IBA).
3. What will a no-deal Brexit mean for the UK?
GS Paper 3:
1. Open market operations (OMO).
2. Insurance Ombudsman.
Facts for Prelims:
1. Caspian war games.
2. Any stay on proceedings is valid only for 6 months: SC.
3. Zojila tunnel.
4. Rashtriya Aajeevika Mission.
GS Paper : 2
Topics Covered: Statutory, regulatory and various quasi-judicial bodies.
Indian Banks’ Association (IBA):
Context:
The managing committee of Indian Banks’ Association (IBA) has elected Union Bank of India’s MD and CEO Rajkiran Rai G. as the association’s chairman for 2020-21.
About Indian Banks’ Association (IBA):
Formed in 1946.
- It is a representative body of management of banking in India operating in India – an association of Indian banks and financial institutions based in Mumbai.
- IBA was formed for development, coordination and strengthening of Indian banking, and assist the member banks in various ways including implementation of new systems and adoption of standards among the members.
Members:
With an initial membership representing 22 banks in India in 1946, IBA currently represents 237 banking companies operating in India.
InstaLinks:
Prelims Link:
- About IBA.
- Members.
- Functions.
Sources: the Hindu.
Topics Covered: Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources.
Global Hunger Index, 2020 released:
What is Global Hunger Index?
The report is a peer-reviewed publication released annually by Welthungerhilfe and Concern Worldwide.
How are Countries ranked?
The GHI scores are based on a formula that captures three dimensions of hunger—insufficient caloric intake, child undernutrition, and child mortality—using four component indicators:
- UNDERNOURISHMENT: the share of the population that is under-nourished, reflecting insufficient caloric intake
- CHILD WASTING: the share of children under the age of five who are wasted (low weight-for-height), reflecting acute undernutrition.
- CHILD STUNTING: the share of children under the age of five who are stunted (low height-for-age), reflecting chronic undernutrition.
- CHILD MORTALITY: the mortality rate of children under the age of five.
Score:
The GHI ranks countries on a 100-point scale, with 0 being the best score (no hunger) and 100 being the worst. Values less than 10 reflect low hunger, values from 20 to 34.9 indicate serious hunger; values from 35 to 49.9 are alarming; and values of 50 or more are extremely alarming.
Key findings:
- India has the highest prevalence of wasted children under five years in the world, which reflects acute undernutrition.
- India ranks 94 out of 107 countries in the Index, lower than her neighbours such as Bangladesh (75) and Pakistan (88).
- The report put India under serious category with the score of 27.2.
- The child stunting rate in India was 37.4 %.
- The child wasting was at 17.3 %.
- The undernourishment rate of India was at 14% and child mortality at 3.7 %.
InstaLinks:
Prelims Link:
- About GHI.
- Released by?
- Scoring.
- Ranking of countries.
- Performance of India.
- India vs neighbours.
Mains Link:
How India has performed in the latest Global Hunger Index? Discuss.
Sources: the Hindu.
Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
What will a no-deal Brexit mean for the UK?
Context:
After six months of negotiations and a stalemate over key issues, on Friday 16 October, Boris Johnson said the UK must be prepared for a no trade deal with the EU from January, in a strong sign that negotiations with Brussels are coming to an end.
Is a no-deal Brexit really possible?
Yes. Failure to agree replacement trading arrangements will mean the UK leaving without a deal on January 1 and trading on WTO terms, which would introduce tariffs and quotas.
- The Withdrawal Agreement will still be in place, so issues like the Irish border and the so-called “divorce bill” will be settled under its terms, but many other issues remain unresolved.
- In other words, the original “no deal” may not be possible, but what is now known as “no deal” might better be viewed as a “no trade deal” exit.
What would no deal look like?
The European Union is adamant that there is no such thing as a “managed” no deal – fearful that making a no deal look too comfortable risks turning it into a self-fulfilling prophecy.
- That will not prevent the European Commission from making contingency plans to smooth out significant disruption but only on a temporary, unilateral basis and only if it is in the EU’s interest.
- Whether or not there is a trade deal, UK financial services will only be granted access to the EU market on the basis of “equivalence”, which is the same system of regulatory recognition US firms have.
How would Trade & Customs be managed?
Without any formal trade deal, the UK would have to rely on WTO rules – in a model described by Brexiteers as an “Australia-style” relationship.
- The default commission position is “all relevant” EU legislation will apply to imports and exports, including tariffs, which will mean customs checks.
Conclusion:
If a point is reached when no deal becomes inevitable, then the interests of both sides would become equally aligned in avoiding a catastrophic outcome.
- Even with temporary measures in place, the fundamental question of what future relationship Britain and the EU want will remain.
- No deal is not sustainable for the long term and eventually the two sides will need to return to the negotiating table.
Sources: the Hindu.
Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
South China sea:
Context:
Philippine government has decided to resume oil exploration in its exclusive economic zone, a 320-km stretch of waters where a coastal state can exclusively exploit maritime resources under the 1982 U.N. Convention on the Law of the Sea.
- This includes Reed Bank, which China also claims. This region is located in the disputed South China Sea.
About the dispute:
It is a dispute over territory and sovereignty over ocean areas, and the Paracels and the Spratlys – two island chains claimed in whole or in part by a number of countries.
- Alongside the fully fledged islands, there are dozens of rocky outcrops, atolls, sandbanks and reefs, such as the Scarborough Shoal.
Who Claims What?
China:
claims by far the largest portion of territory – an area defined by the “nine-dash line” which stretches hundreds of miles south and east from its most southerly province of Hainan.
Vietnam:
hotly disputes China’s historical account, saying China had never claimed sovereignty over the islands before the 1940s. Vietnam says it has actively ruled over both the Paracels and the Spratlys since the 17th Century – and has the documents to prove it.
Philippines:
both the Philippines and China lay claim to the Scarborough Shoal (known as Huangyan Island in China) – a little more than 100 miles (160km) from the Philippines and 500 miles from China.
Malaysia and Brunei:
They lay claim to territory in the South China Sea that they say falls within their economic exclusion zones, as defined by UNCLOS – the United Nations Convention on the Law of the Sea. Brunei does not claim any of the disputed islands, but Malaysia claims a small number of islands in the Spratlys
InstaLinks:
Prelims Link:
- Countries involved in the dispute.
- What is nine dash line?
- Disputed islands and their locations?
- Important straits, passes and seas in the region.
- What is UNCLOS?
- Locate Taiwan strait and Luzon Strait.
Mains Link:
Write a note on South China Sea dispute.
Sources: the Hindu.
Topics Covered: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.
New START treaty:
Context:
President Vladimir Putin has proposed a one-year extension without conditions of the last major nuclear arms reduction accord- the New START treaty- between Russia and the U.S.
About the the New START deal:
It is a nuclear arms reduction treaty between the United States and the Russian Federation with the formal name of Measures for the Further Reduction and Limitation of Strategic Offensive Arms.
- Signed on 8 April 2010 in Prague, and, after ratification entered into force on 5 February 2011.
- Replaced the Treaty of Moscow (SORT), which was to expire in December 2012.
- Its name is a follow-up to the START I treaty, which expired in December 2009, the proposed START II treaty, which never entered into force, and the START III treaty, for which negotiations were never concluded.
Under terms of the treaty:
- Number of strategic nuclear missile launchers will be reduced by half.
- A new inspection and verification regime will be established, replacing the SORT mechanism.
- The number of deployed strategic nuclear warheads is limited to 1,550.
- Number of deployed and non-deployed inter-continental ballistic missile (ICBM) launchers, submarine-launched ballistic missile (SLBM) launchers, and heavy bombers equipped for nuclear armaments to 800 will be limited.
Timeline to meet these Targets:
- These obligations must be met within seven years from the date the treaty enters into force.
- The treaty will last ten years, with an option to renew it for up to five years upon agreement of both parties.
InstaLinks:
Prelims Link:
- About STARTS and New STARTS treaties.
- Timelines under New START.
- Signatories.
- Terms of the treaty.
Mains Link:
Discuss the significance of the New START treaty.
Sources: the Hindu.
GS Paper : 3
Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Open market operations (OMO):
Context:
The Reserve Bank of India (RBI) has said it would conduct Open Market Operation (OMO) purchase of State Developments Loans as per its October 9 announcement.
- RBI will purchase the SDLs through a multi-security auction using the multiple price method. There is no security-wise notified amount.
What is OMO?
Open market operations is the sale and purchase of government securities and treasury bills by RBI or the central bank of the country.
The objective of OMO is to regulate the money supply in the economy.
- It is one of the quantitative monetary policy tools.
How is it done?
RBI carries out the OMO through commercial banks and does not directly deal with the public.
OMOs vs liquidity:
- When the central bank wants to infuse liquidity into the monetary system, it will buy government securities in the open market. This way it provides commercial banks with liquidity.
- In contrast, when it sells securities, it curbs liquidity. Thus, the central bank indirectly controls the money supply and influences short-term interest rates.
RBI employs two kinds of OMOs:
Outright Purchase (PEMO) – this is permanent and involves the outright selling or buying of government securities.
Repurchase Agreement (REPO) – this is short-term and are subject to repurchase.
InstaLinks:
Prelims Link:
- Monetary vs Fiscal policy tools.
- Quantitative vs Qualitative tools.
- What are OMOs?
- PEMO vs REPO.
Sources: the Hindu.
Topics Covered: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
Insurance Ombudsman:
Context:
The Insurance Regulatory and Development Authority of India (IRDAI) has advised public sector general insurers to appoint a nodal officer each for the 17 insurance ombudsman offices to ensure proper and timely disposal of complaints.
About Insurance Ombudsman:
The Insurance Ombudsman scheme was created by the Government of India for individual policyholders to have their complaints settled out of the courts system in a cost-effective, efficient and impartial way.
Who can approach?
Any person who has a grievance against an insurer, may himself or through his legal heirs, nominee or assignee, make a complaint in writing to the Insurance ombudsman.
One can approach the Ombudsman with complaint only if:
One has first approached insurance company with the complaint and;
- They have rejected it
- Not resolved it to satisfaction or
- Not responded to it at all for 30 days
And the value of the claim including expenses claimed should not be above Rs 30 lakhs.
Appointment of Ombudsman:
The Ombudsman is a person in the insurance industry, civil or judicial services, and is appointed by the insurance council.
- The serving term of the Insurance Ombudsman is three years.
The settlement process:
Recommendation:
The Ombudsman will act as mediator and
- Arrive at a fair recommendation based on the facts of the dispute
- If you accept this as a full and final settlement, the Ombudsman will inform the company which should comply with the terms in 15 days
Award:
If a settlement by recommendation does not work, the Ombudsman will Pass an award within 3 months of receiving all the requirements from the complainant and which will be binding on the insurance company.
Once the Award is passed:
The Insurer shall comply with the award within 30 days of the receipt of award and intimate the compliance of the same to the Ombudsman.
Sources: the Hindu.
Facts for Prelims
Caspian war games:
Russia kicks off Caspian war games.
The war games are taking place north of Azerbaijan’s Absheron peninsula.
Any stay on proceedings is valid only for 6 months: SC:
The Supreme Court has held that “Whatever stay has been granted by any court, including the High Court, automatically expires within a period of six months. ” An extension of the stay has to be granted only for a “good reason.”
- The Court has reiterated a 2013 judgment in the Asian Resurfacing of Road Agency Pvt. Ltd case.
Zojila tunnel:
Context: Union Transport Ministry has launched the first blasting for construction-related work at the Zojila tunnel that will provide all-year connectivity between Srinagar valley and Leh.
Key facts:
- The Zojila is set to be Asia’s longest bi-directional tunnel.
- It will connect Srinagar, Dras, Kargil and Leh via a tunnel through the famous Zojila Pass.
- Located at more than 11,500 feet above sea level, the all-weather Zojila tunnel will be 14.15 km long and ensure road connectivity even during winters.
- It will make the travel on the 434-km Srinagar-Kargil-Leh Section of NH-1 free from avalanches, enhance safety and reduce the travel time from more than 3 hours to just 15 minutes.
Rashtriya Aajeevika Mission:
Official name: Deendayal Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM).
Implemented by: Ministry of Rural Development.
Mission objective: Organizing the rural poor women into Self Help Groups (SHGs), and continuously nurturing and supporting them to take economic activities so that they come out of abject poverty.
Sub-schemes under DAY-NRLM:
- Rural Self Employment Training Institutes (RSETIs), enables a trainee to take bank credit and start his/her own Micro-enterprise.
- Start-up Village Entrepreneurship Programme (SVEP) for facilitating the rural poor for setting up of micro Enterprises.
- Aajeevika Grameen Express Yojana (AGEY) to facilitate transport facilities in the rural areas which also provides self employment opportunities to the rural poor.
Articles to be covered tomorrow:
- Scale India Android app.
