UPSC CURRENT AFFAIRS – 21 September 2024

UPSC CURRENT AFFAIRS – 21 September 2024 covers important current affairs of the day, their backward linkages, their relevance for Prelims exam and MCQs on main articles

InstaLinks :  Insta Links help you think beyond the  current affairs issue and help you think multidimensionally to develop depth in your understanding of these issues. 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.

Table of Contents 

GS Paper 3: (UPSC CURRENT AFFAIRS – 21 September 2024)

1. US Fed Cut Interest Rates and Its Impact on India

2. FATF launched the Mutual Evaluation Report (MER) for India

3. Border Management: Government to fence the Myanmar border

Facts for Prelims (FFP)

1. Contempt petition 

2. Fast track immigration-trusted traveller programme

3. Guidelines for electric vehicle charging stations

4. Project 200

5. Exercise AIKYA

Mapping:

6. Jordan 

UPSC CURRENT AFFAIRS – 21 September 2024

GS Paper 3:

US Fed Cut Interest Rates and Its Impact on India

Syllabus: Economy

Source: IE

Context: The US Federal Reserve cut the benchmark interest rate by 50 basis points to stimulate economic activity and job creation. Lower rates encourage borrowing and spending, while higher rates can hinder growth.

What is the US Federal Reserve (Fed)?

The US Federal Reserve, commonly known as the Fed, is the central banking system of the United States. Established in 1913, its primary functions include:

1. Monetary Policy: Managing the nation’s money supply and interest rates to promote economic stability and growth.
2. Banking Supervision: Regulating and supervising banks and financial institutions to ensure safety and soundness.
3. Financial Services: Providing banking services to the government and financial institutions.

The Fed aims to achieve maximum employment, stable prices, and moderate long-term interest rates. 

What is a Fed Rate Cut?

A Fed rate cut refers to a decision by the Federal Reserve to lower the Federal Funds Rate, the interest rate at which banks lend money to each other overnight. Key points about the rate cut include:

1. Purpose: Rate cuts are intended to stimulate economic activity by making borrowing cheaper, and encouraging consumer spending and business investment.
2. Impact: Lower interest rates can lead to increased lending, higher consumer spending, and job creation, while also helping to combat deflation.

Why Did the US Federal Reserve Cut Interest Rates?

1. Post-Pandemic Recovery: Initially cut rates to stimulate the economy after COVID-19, then raised them to combat rising inflation.
2. Moderation of Inflation: By mid-2023, inflation stabilized near the 2% target.
3. Employment Concerns: Rising unemployment (4.2% in August 2024) indicated high rates were harming job growth, prompting a focus on job creation.
4. Dual Mandate: The Fed aims to maintain stable prices and maximum employment; a rate cut helps balance these goals.
5. Implications: Lower rates make loans cheaper, encouraging business expansion and hiring while maintaining inflation control.

Impact on India from US Fed Rate Cut

1. Increased Foreign Investment: Lower US rates may attract global investors to India.
2. Currency Exchange Rates: Potential strengthening of the Indian rupee against the US dollar.
3. Exports and Imports: Exporters may face challenges, while importers benefit from a stronger rupee.
4. Pressure on RBI: The Reserve Bank of India may feel compelled to adjust its own rates.
5. Economic Growth: Lower borrowing costs could stimulate investment and economic activity in India.
6. Carry Trade Appeal: Investors might borrow in the US at low rates to profit from higher Indian rates.

Prelims Links:

Insta Links:

• S. Fed raises rate by 75 bps to tame inflation

FATF launched the Mutual Evaluation Report (MER) for India

Syllabus: Internal Security: Money laundering

Source: FATF

Context: India has made significant progress in complying with FATF standards and tackling illicit finance, but it needs to continue improving as its economy grows. The

(Mutual Evaluation Report) MER on AML (Anti-money laundering) and CFT (Countering Terror Financing) measures placed India in the “regular follow-up” category, recognizing its effective compliance with FATF standards.

Background:

In June 2024, the FATF plenary in Singapore recognized India for achieving a “high level of technical compliance” with global anti-money laundering standards. India was placed in the “regular follow-up” category, the highest rating by FATF, making it the only major federal economy to achieve this status, alongside G-20 countries like the UK, France, and Italy.

Key Highlights of the FATF Mutual Evaluation Report on India:

Key Recommendations of FATF:

1. Expedite pending money laundering trials, including human trafficking and drug crimes.
2. Implement targeted financial sanctions to freeze assets promptly.
3. Define domestic PEPs under PMLA and apply enhanced risk measures.
4. Protect NPOs from terror abuse with risk-based measures.

About the Financial Action Task Force (FATF): 

1. FATF is an inter-governmental policy-making and standard-setting body dedicated to combating money laundering and terrorist financing.
2. Objective: To establish international standards, and to develop and promote policies, both at national and international levels, to combat money laundering and the financing of terrorism.
3. Origin: It was established in 1989 during the G7 Summit in Paris to develop policies against money laundering. In 2001 its mandate expanded to include terrorism financing.
4. Headquarters: Paris, France.
5. FATF members include 39 countries, including the United States, India, China, Saudi Arabia, Britain, Germany, France, and the EU as such. India became a member of FATF in 2010.

Mutual Evaluation Report of FATF: 

1. The mutual evaluation report is an assessment of a country’s measures to combat money laundering, financing of terrorism and proliferation of weapons of mass destruction
2. The reports are peer reviews, where members from different countries assess another country.
3. During a mutual evaluation, the assessed country must demonstrate that it has an effective framework to protect the financial system from abuse.
4. The FATF conducts peer reviews of each member on an ongoing basis to assess levels of implementation of the FATF Recommendations, providing an in-depth description and analysis of each country’s system for preventing criminal abuse of the financial system.

Mutual Evaluations have two main components: 

1. Effectiveness: The most important part of a mutual evaluation is a country’s effectiveness ratings. During this visit, the assessment team will require evidence that demonstrates that the assessed country’s measures are working and delivering the right results.
2. Compliance: The assessed country must provide information on the laws, regulations and any other legal instruments it has in place to combat money laundering and the financing of terrorism and proliferation.

FATF has 2 types of lists: 

1. Black List: Countries known as Non-Cooperative Countries or Territories (NCCTs) are put on the blacklist. These countries support terror funding and money laundering activities. The FATF revises the blacklist regularly, adding or deleting entries. Three countries North Korea, Iran, and Myanmar are currently on FATF’s blacklist.
2. Grey List: Countries that are considered a safe haven for supporting terror funding and money laundering are put on the FATF grey list. This inclusion serves as a warning to the country that it may enter the blacklist.

Consequences of being on the FATF blacklist: 

1. No financial aid is given to them by the International Monetary Fund (IMF), the World Bank, the Asian Development Bank (ADB) and the European Union (EU).
2. They also face a number of international economic and financial restrictions and sanctions.
3. In addition to economic consequences, Black- and Grey-Listing damages a country’s reputation and reduces its international standing.

Mains Links: 

Discuss how emerging technologies and globalisation contribute to money laundering. Elaborate measures to tackle the problem of money laundering both at national and international levels. (2021)

Border Management: Government to fence the Myanmar border

Syllabus: Internal security: Border Management

Source: TH

Context: The government has sanctioned ₹31,000 crore to fence the Myanmar border, which spans 1,643 km across Arunachal Pradesh, Nagaland, Manipur, and Mizoram.

The Home Minister cited border issues as a root cause of Manipur’s ethnic violence. So far, 30 km of fencing has been completed, with ongoing work in Manipur. The Free Movement Regime along the border has been scrapped. Efforts to restore peace between the Meitei and Kuki-Zo communities, amid ongoing violence that has displaced over 60,000 people, are underway.

What is FMR?

FMR, implemented in 2018, the Free Movement Regime (FMR) permits residents on both sides of the 1,643 km India-Myanmar border to travel up to 16 km into each other’s territory without a visa. This requires a border pass with one-year validity, allowing a two-week stay. The border spans four states: Mizoram, Manipur, Nagaland, and Arunachal Pradesh.

The India-Myanmar border is a 1,643-kilometer international boundary running from the tripoint with China in the north to the tripoint with Bangladesh in the south. The trijunction between India, China, and Myanmar is yet to be agreed upon, with the de facto tripoint located just north of the Diphu Pass. The border traverses various geographical features, including the Mishmi Hills, Patkai, Kassom Ranges, Tiau River, and Chin Hills, before reaching the Bangladeshi tripoint through irregular lines.

The Government of India follows the principle of “One Border, One Border Guarding Force”:

1. BSF secures the borders with Bangladesh and Pakistan.
2. ITBP guards the China border.
3. SSB manages the Nepal and Bhutan borders.
4. Assam Rifles handles the Myanmar border.
5. The Indian Army protects the LoC (Indo-Pak) and LAC (Indo-China).
6. Coastal security is managed by the Indian Navy, Coast Guard, and State Marine Police.

India shares borders with seven countries (Bangladesh, China, Pakistan, Nepal, Myanmar, Bhutan, and Afghanistan) across diverse terrains, making it vulnerable to insurgency, illegal migration, and smuggling.

What is Border management? 

It aims to secure border areas and safeguard our nation from the risks involved in the movement of goods and people from India to other countries and vice versa. The principle of “One Border, One Border Guarding Force” is followed by the Government of India to secure the border.

Importance of Effective Border Management: 

1. Counterterrorism: Effective border controls prevent the infiltration of terrorists and restrict the movement of arms and explosives.
2. Limit Organised Crime: Tight border security curtails illegal activities such as drug and human trafficking, smuggling, and illicit trade.
3. Suppress Cross-border Insurgency: A well-managed border deters insurgents from gaining a foothold, resources, or support from external sources.
4. Preserve Sovereignty: Maintaining clear and secure borders upholds national sovereignty and ensures territorial integrity.
5. Regulate Migration: Effective management facilitates legal migration while preventing illegal entries, thus ensuring demographic stability.

How poor border management affects internal security: 

1. Infiltration and Illegal Activities: Example: In states like Jammu and Kashmir, poor border management has led to the infiltration of militants and terrorists, contributing to ongoing conflict and violence. Increased cross-border smuggling of arms and drugs further destabilises these regions.
2. Terrorism and Insurgency: Example: In the northeastern states such as Manipur and Mizoram, inadequate border control allows insurgent groups to cross into India from neighbouring countries like Myanmar, fuelling local insurgencies and violent activities.
3. Smuggling and Trafficking: Example: In Punjab, porous borders with Pakistan facilitate the smuggling of drugs and contraband, leading to severe drug abuse problems and organized crime within the state.
4. Cross-Border Crime: Example: In West Bengal, poor border management has allowed criminal gangs to operate with relative impunity, leading to increased cross-border trafficking of humans and goods.
5. Economic Disruption: Example: In Assam, ineffective border controls contribute to illegal immigration and land encroachments, straining local resources and creating socio-economic tensions, which further exacerbate internal security issues.

Current National Security Measures to Address Border Security Threats:

Conclusion:

Madhukar Gupta Committee has given its recommendations broadly on the issues of threats and border protection, assessment of force level, deployment on the border, infrastructure and technology issues for protection of border and administrative issues. A strong collaborative initiative is required with the Ministry of Home Affairs and the Defense ministry as well as involving other defense ministries from the neighboring states.

Insta Links:

• Free Movement Regime (FMR) with Myanmar

UPSC CURRENT AFFAIRS – 21 September 2024 GS Facts for Prelims (FFP)

Contempt petition

Source: IE

Context: Chief Justice of India (CJI) D Y Chandrachud informed the Attorney General that the Jharkhand government has filed a contempt petition against the central government for delaying the appointment of a new Chief Justice to the Jharkhand High Court, as recommended by the Supreme Court Collegium.

1. This was stated during a hearing on a Public Interest Litigation (PIL) seeking a “fixed time limit” for the Centre to notify judicial appointments.
2. The Jharkhand government emphasized that delays in appointing a Chief Justice hinder judicial efficiency.

Fast track immigration-trusted traveller programme

Source: TOI

Context: India has launched its first Fast Track Immigration-Trusted Traveller Programme (FTI-TTP) aimed at providing quicker immigration processing for High-Net-Worth Individuals (HNWIs), CEOs, businessmen, and Overseas Citizens of India (OCI).

• The program, operational at major airports such as Delhi and Mumbai, offers faster immigration clearance through e-gates.
• Enrollees must apply online, provide biometrics at airports or Foreigners Regional Registration Offices (FRRO), and can enjoy fast-track clearance for up to five years.
• The program ensures secure handling of personal data and is inspired by the US Global Entry system, tailored to Indian needs.

Guidelines for electric vehicle charging stations

Source: BS

Context: The Indian government has issued revised guidelines for the installation and operation of electric vehicle (EV) charging stations, aiming to boost EV adoption and expand charging infrastructure.

These guidelines, released by the Ministry of Power, introduce a new revenue-sharing model between the government and private operators to make charging stations more financially viable.

Key highlights include:

• Charging stations can be installed in various locations such as office buildings, educational institutions, public spaces like shopping malls, airports, highways, and petrol stations.
• The guidelines promote EV charging during solar hours (9 AM to 4 PM) by offering lower tariffs to encourage renewable energy usage.
• A minimum density of charging stations is specified, with urban areas requiring at least one station per 1 km² by 2030, and stations placed every 20 km along highways.
• The new policy also supports the government’s PM E-DRIVE scheme, which aims to install 74,300 chargers across the country, including fast chargers for different types of EVs.

• The government plans to provide subsidized land to private operators for station installation, with revenue-sharing arrangements based on electricity consumption for up to 10 years.

Project 200

 Source: TH

Context: Bengaluru-based startup Bellatrix Aerospace unveiled “Project 200,” an innovative satellite designed to operate at Ultra-Low Earth Orbit (180-250 km) during the Bengaluru Space Expo 2024.

1. This orbit could revolutionize satellite capabilities, enhancing applications like high-resolution Earth observation and telecommunications.
2. The startup’s breakthrough propulsion technology will allow satellites to operate at this low altitude for years, overcoming the challenges of atmospheric drag.
3. This new technology reduces communication latency by half, improves image resolution by three times, and significantly lowers satellite costs, marking a major shift in satellite operations.

Exercise AIKYA

Source: TH

Context: The National Disaster Management Authority (NDMA) and the Southern Command of the Indian Army launched a two-day national symposium, “Exercise AIKYA,” focusing on disaster management.

• The event includes simulations, technology discussions, and expert insights on disaster preparedness.
• It emphasized the role of defence forces and the importance of technology in managing disasters, particularly in southern states prone to cyclones and floods.

UPSC CURRENT AFFAIRS – 21 September 2024 Mapping:

Jordan

 Source: WHO

Context: Jordan has become the first country in the world to receive World Health Organization (WHO) verification for eliminating leprosy.

• This achievement highlights the country’s strong political commitment and effective public health strategies, with no locally transmitted cases reported for over two decades.
• Jordan’s success serves as a global model, demonstrating the power of sustained efforts and collaboration in public health.

UPSC CURRENT AFFAIRS – 21 September 2024

Follow us on our Official TELEGRAM Channel HERE

Subscribe to Our Official YouTube Channel HERE

Please subscribe to Our podcast channel HERE

Official Facebook Page HERE

Twitter Account HERE

Instagram Account HERE

LinkedIn: HERE