EVENT FOR ODOP SAMPARK IN NAGALAND
In News, why?
The Department for the Promotion of Industry and Internal Trade (DPIIT) and Invest India recently organised the ODOP Sampark Event in Nagaland in partnership with the Department of Industries and Commerce. The One District One Product (ODOP) and PM Gati Shakti (Logistics) projects were the focus of the occasion.
What are the Event’s Main Highlights?
Enhancing Market Access: Improving market access for Indian products, particularly those from Nagaland, in international markets like the European Union (EU), Switzerland, and others was one of the main goals of the event.
Infrastructure Development: Several initiatives to enhance logistics infrastructure were highlighted in order to support the ODOP goods from Nagaland, including:
Using the Krishi UDAN scheme to improve transport
increasing rail connections
Unity Malls, which would serve as centralised marketplaces for ODOP products, will be built across the nation with funding from the Union Budget 2023–24 totaling INR 5000 crores.
ODOP Exhibition: Various ODOP products from Nagaland were on display at the occasion, including chilli, fish, coffee, and turmeric.
One District One Product Initiative: What Is It?
About:
ODOP is a programme that promotes and brands one product from each district in order to increase economic growth at the district level. The goal is to use each district’s local potential, assets, know-how, and culture to its advantage and give it a distinct identity in both home and foreign markets. All 761 districts across the nation’s selection process yielded over a thousand goods. Textiles, agriculture, processed goods, medicines, and industrial products are just a few of the many industries that are covered by the project. Additionally, a number of ODOP items were on show at the Davos World Economic Forum in Switzerland in January 2023 in the Indian Pavilion.
Background:
The Uttar Pradesh government initially introduced the ODOP idea in January 2018. The plan was successful in resurrecting the state’s historic industries and crafts, including brassware, pottery, carpets, leather items, and chikankari needlework. The national initiative was started as a result of the central government adopting the idea after being inspired by it.
Implementation:
The plan is carried out for the food processing industry by the Ministry of Food Processing Industries (MoFPI). The ‘Lota Shop’ was opened by the Ministry of Textile at the National Crafts Museum in New Delhi as part of the Central Cottage Industries Corporation of India Limited (CCIC) to display and market ODOP plan items. To increase exports, the Directorate General of Foreign Trade (DGFT) also coordinated with ODOP its Districts as an Export Hub project.
Significance:
Economic Development: By selecting a specific product or craft for each district and turning it into a speciality, ODOP seeks to improve the neighbourhood economy. This strategy aids in establishing a diverse and long-lasting economic foundation at the local level, resulting in greater income creation, job possibilities, and overall economic growth.
Entrepreneurship and skill development: By emphasising certain goods and crafts, the project promotes regional entrepreneurship. It strives to give craftsmen and business owners technical assistance, skill development, and capacity building so they can improve their production capacity, product quality, and market reach. In turn, this empowers people and communities by encouraging self-employment and cultivating an innovative culture.
Preserving Traditional Knowledge and Heritage: Each district’s cultural fabric is firmly woven into India’s rich heritage of traditional crafts and goods. The ODOP programme seeks to promote and preserve these historic trades, which frequently encounter difficulties as a result of globalisation and shifting consumer tastes.
Market Links and Branding: ODOP places a strong emphasis on building strong market links and a vibrant marketing environment for regional goods. The effort aids in the development of specialised markets, the attraction of customers, and an increase in exports, all of which assist to strengthen the local economy.
Awards for One District One products:
The One District One Product Awards were established by DPIIT to recognise the contributions of many stakeholders in advancing economic development and achieving the vision of Atmanirbhar Bharat. These honours will be given to States/UTs, Districts, and Indian Missions Abroad for their exceptional work. The Rashtriya Puraskar Portal will debut the awards.
PM Gati Shakti: What is she?
About:
PM Gati Shakti is a National Master Plan for Multi-modal Connectivity, a digital platform to bring 16 Ministries together for integrated planning and coordinated implementation of infrastructure connectivity projects. These Ministries include Railways, Civil Aviation, MEITY, Shipping, and Road Transport.
Features:
To increase connectivity and boost the competitiveness of Indian businesses, the plan takes into account infrastructure projects from various Ministries and State Governments, such as Bharatmala, Sagarmala, inland waterways, dry/land ports, UDAN, etc. It also covers economic zones, such as textile clusters, pharmaceutical clusters, defence corridors, electronic parks, industrial corridors, fishing clusters, and agri zones. The plan also makes considerable use of technology, such as spatial planning tools made possible by BiSAG-N (Bhaskaracharya National Institute for Space Applications and Geoinformatics), which allow for transparency in the management of ongoing projects.
Origin: PIB
UPI PAYMENTS: GIVING USERS POWER, TESTING BANKS
In News, why?
A complicated landscape of constraints in terms of value and volume has been created by the adoption of varied daily limits by banks and apps in response to the United Payments Interface (UPI) transactions’ fast growth in India. The rise of UPI transactions has made it clear that banking infrastructure and technology capabilities need to be constantly developed and improved.
What are the UPI Payments Daily Limits?
20 transactions per day and 1 lakh per day were the limits imposed by the National Payments Corporation of India (NCPI) for 2021. But banks and applications have put in place their own restrictions, making things more complicated. For instance, ICICI Bank permits 10 transactions per day, compared to 20 transactions per day for Bank of Baroda and HDFC Bank. A greater restriction of Rs. 2 lakh applies to some specified categories of transactions, including those in the capital markets, collections, insurance, and forward inbound remittances. The maximum for each transaction for UPI-based ASBA (Application Supported by Blocked Amount system) IPO and retail direct programmes was raised to 5 lakh in December 2021.
What exactly is India’s National Payments Corporation?
About:
All Indian retail payment methods are under its umbrella. It was established with the help and direction of the Indian Banks’ Association (IBA) and the Reserve Bank of India (RBI).
Objectives:
to combine and incorporate the many systems currently in use into a single, nationally standardised business procedure for all retail payment systems. to enable a low-cost payment system that will aid the nation’s common man and promote financial inclusion.
How Have UPI Payments Grown in Number Over Time?
After demonetization, UPI became a popular cash substitute in India. The increase in transactions was more noticeable in terms of volume than value between May 2018 and May 2023. The total amount of UPI transactions in May 2018 was 33,288 crore (or $1,756 per transaction). A drop of Rs. 175 per transaction over five years was seen when the value increased to Rs. 14,89,145 crore (Rs. 1,581 per transaction) in May 2023.
Recent changes to the UPI ecosystem:
New Rules
Prepaid Payment Instruments (PPIs) wallet transactions using UPI will now incur an interchange fee, effective as of April 2023. For Person to Merchant transactions over 2,000, there is a fee of up to 1.1% on merchants that will be split by the participating banks. Enhancing client experience with the UPI AutoPay capability for recurring payments up to 5,000
convenience and retaining business.
Collaboration:
To enable cross-border payments via UPI, NPCI has worked with a number of nations, including Singapore, the United Arab Emirates, Bhutan, and Japan.
What impact do these trends have on both users and banks?
Optimistic Effects
Efficiency: Digital transactions conducted quickly and easily through cellphones.
Access to digital payments for people is financial inclusion.
Reduced Cash Dependency: Cutting down on risks and thwarting unauthorised transactions.
Tracking and keeping an eye on financial activity will increase transparency.
Promoting digital entrepreneurship and innovation will help the digital economy.
Adverse effects
Users:
UPI as a Petty Cash Alternative:
Consumers are increasingly substituting UPI for tiny cash in order to conduct smaller transactions. This tendency is reflected in the decreasing value per transaction over time.
Transaction Flexibility Restriction:
The confusing web of restrictions placed on UPI transactions by various apps and institutions limits consumers’ freedom in terms of transaction volume and value. Users must travel through a variety of restrictions, which hinders their capacity to complete transactions as needed.
Rising Failure Rates of Transactions
Transaction failures may occur when banks strive to modernise their technical systems and infrastructure in order to handle the increase in UPI payments. Users may become irritated by this and suffer trouble making a flawless payment.
Banks:
Bank Infrastructure Challenges:
Transaction failures occur as a result of banks’ inability to handle the spike in UPI payments. It is essential to upgrade banks technical systems and infrastructure to keep up with the rising demand. The increasing number and frequency of UPI transactions requires banks to make sure that their servers can manage them without any hiccups or outages.
Security and preventing fraud
The likelihood of cyberthreats and fraudulent activities is rising along with the number of UPI transactions. To protect user data and stop unauthorised access, banks need strong security measures like encryption, two-factor authentication, and fraud detection systems.
Way ahead
Infrastructure development that is agile:
To handle the rising number and frequency of UPI transactions, invest in a solid infrastructure and cutting-edge technology solutions. DLT is a decentralised digital system that provides secure and transparent recording, storage, and sharing of information across numerous users in a network to ensure scalability, security, and real-time transaction processing. It is important to embrace edge computing with DLT.
Unique Financial Insights:
Utilise artificial intelligence and data analytics to offer UPI consumers individualised financial information. Provide tools for creating budgets, real-time expenditure data, and personalised advice to help consumers make smart financial decisions.
Using blockchain technology
Investigate adding blockchain technology to the UPI infrastructure to improve scalability, transparency, and security. Smart contracts can streamline cross-border transactions, eliminate middlemen, and automate transaction procedures.
Fraud prevention with AI:
Utilise machine learning and artificial intelligence to quickly identify and stop fraudulent UPI transactions. Utilise sophisticated anomaly detection algorithms that look for unusual activity by examining user behaviour patterns and transaction data.
Previous Year Questions (PYQ) for the UPSC Civil Services Exam
Prelims
Q1. Consider the following statements in relation to digital payments: (2018)
- Money transfers to anyone with a UPI-enabled bank account are possible through the BHIM app.
- The BHIM app only requires two factors of authentication, compared to four for a chip-and-pin debit card.
Which of the aforementioned statements is true?
(a) 1 alone
(b) 2 only
(c) 1 and 2 together
None of 1 or 2 (d)
Ans: (a)
Q2. Which of the following results from using the “Unified Payments Interface (UPI)” is most likely? (2017)
(A) Online payments won’t require mobile wallets.
(b) In around 20 years, digital currency will completely replace physical currency.
(c) There will be a sharp rise in FDI inflows.
(d) Direct transfers of aid to the impoverished will prove to be quite successful.
Ans: (a)
Q3. Take into account the following claims:
- The National Payments Corporation of India (NPCI) supports the nation’s efforts to increase financial inclusion.
- RuPay is a new card payment system from NPCI.
Which of the aforementioned statements is true?
(a) 1 alone
(b) 2 only
(c) 1 and 2 together
None of 1 or 2 (d)
Ans: (c)
Origin: TH
SUPERCAPACITOR MADE OF PAPER FOR QUICK DEVICE CHARGING
In News, why?
With the creation of a paper-based supercapacitor, researchers at the Gujarat Energy Research and Management Institute (GERMI) have made strides in energy storage technology. This state-of-the-art supercapacitor is made from seaweed and has amazing qualities including being biodegradable, lightweight, and able to fully charge a device in just 10 seconds.
A paper-based supercapacitor: What is it?
About:
The thinnest and lightest supercapacitor of its kind has been created by GERMI researchers. The team successfully developed an anodic paper supercapacitor that demonstrates outstanding tensile strength, performance, and cost-effectiveness by utilising cellulose nanofibers generated from seaweed.
Applications and Commercial Opportunities:
This ground-breaking supercapacitor has a wide range of uses in electronics, memory backup systems, airbags, heavy equipment, and electric automobiles. As a result, it offers significant commercial opportunities for sectors looking for high-performance energy storage solutions. The technology appeals to both producers and consumers because to its adaptability and environmental friendliness.
Prospects for Marine Cellulose
The marine cellulose-based substance made from seaweed is what gives the paper supercapacitor its exceptional qualities. The integration of this material with many smart electronic gadgets has enormous potential. Seaweed farming may also generate income for coastal communities, fostering sustainable development and opening up new economic prospects.
How do supercapacitors work?
An electrochemical charge storage device is a supercapacitor. They go by the name ultracapacitors as well. When compared to ordinary capacitors and Lithium-Ion batteries (LIB), it offers a number of benefits, including high power density, extended endurance, and ultrafast charging capabilities. Electrode, electrolyte, separator, and current collector make up the bulk of supercapacitors.
How do seaweeds work?
About:
Seaweeds are macroalgae that are typically found in coastal environments adhering to rock or other substrata.
Based on their colour, they are categorised as phaeophyta (brown), rhodophyta (red), and chlorophyta (green). Chlorophyta among them has a greater variety of possible constituents, including carbohydrates, lipids, proteins, and bioactive substances.
Significance:
Seaweeds are a good source of important nutrients such vitamins, minerals, and dietary fibre.
Many seaweeds have medicinal uses because they contain anti-inflammatory and antibacterial compounds. Strong cancer-fighting compounds can be found in several seaweeds.
Algal blooming is a bioindicator of marine chemical degradation because it occurs when waste from agriculture, industry, aquaculture, and households is dumped into the ocean and produces nutritional imbalance. Seaweeds help to maintain ecosystem equilibrium by absorbing extra nutrients.
Production of Oxygen: As photosynthetic creatures, seaweeds are essential components of marine ecosystems because they produce oxygen through photosynthesis, ensuring the survival and respiration of marine life.
Green seaweed from Gujarat’s Porbandar coast contains a significant proportion of a specific type of cellulose in its cell walls. The best biopolymer material for making paper-based electrodes, such as batteries for energy storage applications, is discovered to be cellulose. To create a paper-based energy storage device, cellulose, which is an insulating material by nature, must be coated with conductive material.
Seaweed Production:
Out of the approximately 32 million tonnes of fresh weight seaweed produced globally, valued at approximately USD 12 billion. China generates about 57% of global production, followed by Indonesia (28%), South Korea, and South Korea’s little fraction of India (0.01-0.02%). According to estimates, if cultivation were to take place on 10 million hectares, or 5% of India’s Exclusive Economic Zone, it could employ 50 million people, contribute to the national GDP, increase ocean productivity, reduce algal blooms, sequester millions of tonnes of CO2, and produce 6.6 billion litres of bio-ethanol.
Author: DTE
PM-KISAN FACE AUTHENTICATION SCHEME
In News, why?
In order to improve the effectiveness and usability of welfare programmes, the Ministry of Agriculture & Farmers Welfare, Government of India, recently launched the Face Authentication Feature in the PM-Kisan app. In order to give farmers information in their mother tongue, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) is merging with Bhashini. Bhashini is the government’s National Public Digital Platform for Languages, which will use artificial intelligence and other cutting-edge technology to provide services and goods for citizens.
What are the Feature’s Key Points?
About:
The Unique Identification Authority of India (UIDAI), which manages data connected to Aadhaar, makes use of the iris data available with the face authentication capability. In order to access this capability, the Ministry worked with UIDAI, assuring its accuracy and dependability.
Benefits:
Enhanced Accessibility: By removing the need for physical biometric verification, the face authentication function enables farmers to conveniently complete the e-KYC process from their mobile phones.
Using facial recognition, the programme accommodates farmers whose mobile numbers are not connected to their Aadhaar, resulting in a more efficient process for all qualified recipients.
Simplified Biometric Authentication Process for Elderly Farmers: The new feature addresses the difficulties faced by elderly farmers by removing the requirement for them to travel to designated centres.
Describe PM-KISAN.
About:
According to the programme, the Centre makes three equal payments of Rs 6,000 per year into the bank accounts of all farmers who own land, regardless of the size of their holdings. It debuted in February of this year.
Finance and Execution:
It is a central sector programme that receives all of its funding from the Indian government. The Ministry of Agriculture and Farmers Welfare is in charge of carrying it out.
Beneficiaries’ Identification:
The State / UT Governments are solely responsible for identifying the farmer families who will get assistance.
Objective:
to provide additional funding to help small and marginal farmers buy various inputs necessary for healthy crops and yields that are acceptable for the expected farm revenue at the end of each crop cycle. To keep them from getting trapped in the clutches of moneylenders while paying for these fees and to guarantee their continued participation in farming operations.
Mobile app PM-KISAN
The National Informatics Centre, in conjunction with the Ministry of Electronics and Information Technology, created and produced the PM-KISAN mobile application.
Aadhaar cards can be updated or corrected, and farmers can examine the status of their applications and the history of bank account credits.
Accomplishments to date:
The PM-Kisan scheme has benefited more over 11 crore farmers nationwide, demonstrating its broad influence. The scheme’s focus on gender equality and women’s empowerment in the agricultural industry is evidenced by the inclusion of more than 3 crore women farmers.
Previous Year Questions (PYQs) for the UPSC Civil Services Exam
- Take into account the following claims: (2018)
- You can use your Aadhaar card as identification or as proof of residency.
- The issuing authority cannot remove or cancel an Aadhaar number once it has been issued.
Which of the aforementioned statements is true?
(a) 1 alone
(b) 2 only
(c) 1 and 2 together
None of 1 or 2 (d)
Ans: (d)
Exp:
The Aadhaar platform assists service providers in securely and quickly verifying people’ identities online, improving the effectiveness and efficiency of service delivery. The GoI and UIDAI contend that Aadhaar does not serve as proof of citizenship. UIDAI has provided a list of backup plans, though, in case the Aadhaar it has issued is subject to rejection. It is possible to deactivate an Aadhaar that contains mixed or anomalous biometric data or numerous names (such as Urf or Alias) in a single name. If Aadhaar is not used for three years in a row, it may potentially be cancelled.
Origin: IE
MANIPUR USES THE RIOTING PROVISIONS OF THE RBI
In News, why?
In reaction to a grave situation in the State defined by riots and violence, the Manipur administration has invoked the RBI’s Riot Provision. The decree acknowledged the borrowers’ incapacity to repay debts as a result of the crisis and called for assistance for those who were impacted. Although it is frequently used in communities hit by natural disasters, this action represents the first time it has been used in response to a law-and-order issue.
Which provisions are they?
2018 RBI Directions:
The provisions are according to Chapter No. 7 of the “Reserve Bank of India (Relief Measures by Banks in Areas Affected by Natural Calamities) Directions, 2018.” Whenever RBI advises banks to provide rehabilitation assistance to riot/disturbance affected persons, the aforementioned guidelines may be broadly followed by banks for the purpose.
“Riots and Disturbances” are particularly covered by the provisions.
The regulations outline a number of standards that must be adhered to when restructuring debts, giving out new loans, and doing other actions, such as following KYC regulations.
All short-term loans, with the exception of those that were past due at the time of the riots, will be eligible for restructuring, per the instructions.
Applicability:
Every Scheduled Commercial Bank (including Small Finance Banks (SFBs) and excluding Regional Rural Banks (RRBs)) licenced to conduct business in India by the RBI shall be subject to the terms of these Directions.
Crop Loans
In the case of crop loans, debtors are qualified for a maximum repayment period of two years if the loss falls between 33% and 50%. The payback period may be increased by a maximum of five years if the crop loss surpasses 50%. All restructured loan accounts will also have a moratorium period that lasts for at least a year.
Loan for Long-Term Agri:
Banks may reschedule installment payments for the impacted year and lengthen the loan tenure by one year if crop damage occurs without causing damage to productive assets. Additionally, banks have the choice to put off borrowers’ interest payments. However, a fresh loan can be necessary if the productive assets are also harmed.
Recent loans:
Even if the value of assets is less than the loan amount, banks may grant collateral-free consumption loans up to Rs 10,000 to current borrowers without personal guarantees after evaluating their credit needs and following the loan approval procedures.
Relaxing KYC Standards:
The banks must open new accounts for those who have lost their documents as a result of the rioting disaster. This will apply if the account balance is less than or equal to Rs 50,000. The account’s total credit line shouldn’t go over Rs. 1,000,000.
How does loan restructuring work?
About:
By negotiating reduced interest rates on their obligations, loan restructuring enables individuals, organisations, and governments to stay out of bankruptcy. Loan restructuring is less expensive than filing for bankruptcy when a debtor is having problems paying their payments. Both the debtor and the creditor can benefit from it. Renegotiating the terms of loan commitments to gain flexibility fast and control overall debt loads might help businesses avoid bankruptcy.
Benefits:
Restructuring debt is mostly done to save and maintain the firm.
Through the legislation, it safeguards the company against creditors.
In the event that the company avoids bankruptcy, creditors receive more money. A debt-restructuring personal loan helps creditors achieve better results when it comes to borrowers.
Questions from the previous year’s UPSC Civil Services Exam (PYQ)
- Which of the following best sums up the phrase “Scheme for Sustainable Structuring of Stressed Assets (S4A)” that was just reported on? (2017)
(a) It is a process for taking environmental costs of government-formulated development plans into account.
(a) It is a plan by the RBI to revamp the financial setup of large corporate entities that are actually having trouble.
(c) It is a government disinvestment plan for central public sector enterprises.
(d) It is a crucial clause in the government’s recently approved “The Insolvency and Bankruptcy Code.”
Ans: (b)
Origin: TH
LIGHTNING-FAST CURRENT AFFAIRS
PROJECT KALASA BANDURI ON THE MAHADAYI RIVER
Due to the lack of a forest and environmental clearance, the contentious Kalasa Banduri Project, which was started by the previous Karnataka administration just before the state’s Assembly elections, may encounter issues during the tendering process. The Kalasa-Banduri project intends to enhance the availability of drinking water in the Karnataka districts of Belagavi, Dharwad, Bagalkot, and Gadag. To redirect water to the Malaprabha river (a tributary of the Krishna River), barrages must be constructed across Kalasa and Banduri, two tributaries of the Mahadayi River. The west-flowing Mahadayi or Mhadei river has its source in the Belagavi district of Karnataka’s Western Ghats, in the Bhimgad Wildlife Sanctuary. Goa, Karnataka, and Maharashtra districts all border the river. Due to interstate water disputes, environmental issues, and opposition from local people, the Kalasa-Banduri project is divisive.
FLOOD IN ASSAM & BEKI RIVER
According to the Assam State Disaster Management Authority’s (ASDMA) daily flood report, Assam’s flood situation is still dire, with almost 20 districts being affected by nonstop rain. Beki, a Brahmaputra River tributary, is now flowing beyond the danger threshold. Roads, bridges, embankments, and other forms of infrastructure have all sustained substantial damage as a result of the floodwaters. One of the right-bank tributaries of the River Brahmaputra, the Beki River originates in Bhutan and is also referred to as the Kurissu River. This river passes through Assam to a large extent. For the many communities of Assam, it provides a means of transportation and a source of income.
STAINLESS STEEL CUTLERY: BIS
Recently, the Bureau of Indian Standards (BIS) published IS 18267: 2023 “Food Serving Utensils Made from Agri By-Products – Specification”, aimed at reducing plastic pollution and promoting sustainability. The standard covers various aspects, including raw materials, manufacturing techniques, performance, and hygiene requirements for the production of biodegradable utensils. These utensils are free from harmful additives and ensure consumer well-being. The standard also creates economic opportunities for farmers and supports sustainable agricultural practices, contributing to rural development and promoting circular economy. BIS has been established for the harmonious development of the activities of standardisation, marking and quality certification of goods and for matters connected therewith or incidental thereto. It was established by the BIS Act, 1986 and works under the aegis of the Ministry of Consumer Affairs, Food & Public Distribution. A new BIS Act 2016 was brought into force with effect from October 2017. The Act establishes the BIS as the National Standards Body of India.
ISLAND CANARIES
The Canary Islands of Spain are an archipelago in the Atlantic Ocean that is made up of the Spanish provinces of Las Palmas and Santa Cruz de Tenerife. The Canary Islands were formed by volcanic eruptions millions of years ago, and over 30 migrants perished when a small boat heading there sank, according to information shared by two organisations that concentrate on migration.