Warmer Summer in India Likely Due to El Nino (IMD Forecast) (GS-1 Mains, Geography)

Summer Forecast (March-May):

• Above-normal maximum and minimum temperatures expected due to El Nino.
• Warmer start to the season anticipated.
• Above-normal rainfall possible in March.

Normal Ocean-Atmosphere System:

• Trade winds blow west, pushing warm surface water from South America to Asia.
• Cold water rises near Indonesia (upwelling).
• Warm surface water creates low pressure, leading to cloud formation and rainfall.
• Airflow helps build the monsoon system bringing rain to India.

El Nino Conditions:

• Weakens trade winds, pushing warm water back towards Americas.
• Cold water near Asia is reduced.
• Impacts on India:
  • Low rainfall (droughts).
  • Increased temperatures.
  • Higher risk of forest fires.
  • Water scarcity.
  • Impacts on fisheries.

La Nina (Opposite of El Nino):

• Stronger trade winds push warm water towards Indonesia.
• Eastern Pacific Ocean colder than normal.
• Impacts on India:
  • Typically brings good monsoon rainfall.

 

Regulatory Sandbox Framework (RBI) (GS-3 Mains, Economy)

About Regulatory Sandbox (RS):

• Allows testing new financial innovations in controlled environment.
• Aims to:
  • Foster responsible innovation.
  • Promote efficiency and consumer benefit.
• Entities with minimum net worth of ₹25 lakh can participate.

Components:

• Controlled environment for live testing.
• Regulatory relaxations (may or may not be granted).
• Collaboration among regulators, innovators, financial institutions, and customers.

Recent Updates by RBI:

• Increased timeline for completion of stages (9 months from 7).
• Requires compliance with Digital Personal Data Protection Act (2023).

Benefits of RS:

• Fosters innovation through live testing.
• Promotes efficiency and ‘learning by doing’ for all stakeholders.
• Allows risk management during testing phase.
• Enhances consumer protection with wider product range and access.
• Provides regulatory compliance framework for innovative solutions.

Challenges of RS:

• Balancing flexibility and time for innovators.
• Potential for regulatory ambiguity.
• Ensuring risk containment within the testing environment.
• Addressing data confidentiality, customer protection, and cross-border legal issues.
• Need for legal safeguards for investors.

Conclusion:

• Careful management of challenges is crucial for successful RS implementation.
• Proposed FinTech solutions should address existing gaps and benefit consumers/industry.

 

International Big Cat Alliance (IBCA) for Big Cat Conservation (GS-3 Mains, Environment)

About IBCA:

• A multi-country alliance of 96 big cat range countries for conservation.
• Focuses on seven big cats: tiger, lion, leopard, snow leopard, puma, jaguar, cheetah.
• Headquartered in India.

Governance:

• Assembly of Members.
• Standing Committee.

India’s Support:

• ₹150 crore one-time grant for five years (2023-24 to 2027-28).

India’s Big Cat Conservation Efforts:

• Project Tiger (1973): Tiger habitat protection & community involvement.
• Project Cheetah: Reintroduction from Namibia and South Africa.
• Transboundary cooperation: Terai Arc, Kanchenjunga (Nepal), TraMCA (Bhutan), Sundarbans (Bangladesh).

The Seven Big Cats:

• Lion (Panthera Leo): Vulnerable. Mainly sub-Saharan Africa, with some Asiatic lions in India (Gir National Park).
• Tiger (Panthera Tigris): Endangered. Found in 13 Asian countries.
• Snow Leopard (Panthera Uncia): Vulnerable. Mountain regions of 12 Central Asian countries.
• Jaguar (Panthera Onca): Near Threatened. Mostly in Amazon rainforest and Pantanal (South America).
• Cheetah (Acinonyx Jubatus): Vulnerable. Currently in eastern/southern Africa and a small population in Iran.
• Puma (Puma Concolor): Least Concern. Found in North, Central, and South America.
• Leopard (Panthera Pardus): Vulnerable. Found in Africa, parts of the Middle East, and Asia.

 

Development of Agaléga Island: India-Mauritius Cooperation (GS-2 Mains , IR)

India’s Vision:

• Strengthen strategic partnership with Mauritius (historical & cultural ties).
• Enhance maritime security in the Indian Ocean (regional stability).
• Assist Mauritius through SAGAR initiative (capacity building).

Significance of Agaléga Island:

• Strategic location: projects power & influence in key maritime routes.
• Improves maritime security & surveillance (monitoring sea lanes).
• Potential access to underwater resources (oil, gas, minerals).
• Suitable for naval & maritime operations (airstrip, jetty).
• Deepens India-Mauritius relations through joint development.

About Agaléga Island:

• Two-island group (26 km²) in the Indian Ocean.
• Belongs to Mauritius, located 1,050 km north.

Setting Up Semiconductor Plants in India: Boosting Domestic Production (GS-3 Mains , Sci. & Tech.)

Government Approval:

• Three new semiconductor units planned in Gujarat and Assam (₹1.26 lakh crore investment).
• Plants by:
  • Tata Electronics & Powerchip Semiconductor (Gujarat)
  • Tata Group (Assam)
  • CG Power & Renesas (Gujarat)

What are Semiconductors?

• Complex chips enabling electronic devices to process, store, and transmit data.
• Made of transistors, diodes, capacitors, and resistors on silicon wafers.

Global Chip Manufacturing Scenario:

• Dominated by East Asia (South Korea, Taiwan, China).
• US and Japan have a significant presence.
• Limited chip design and manufacturing capabilities in India.

Challenges for India:

• Competition: Attractive incentive schemes by other countries.
• Talent gap: Shortage of skilled workers for factory operations.
• R&D limitations: Weak focus on chip design innovation.
• Power supply: Uninterrupted power crucial for chip manufacturing.
• Water usage: High water consumption for chip production.

Significance of the Project:

• Job creation: Opportunities for skilled engineers and technicians.
• Reduced import dependence: Self-reliance in chip production.
• Export potential: Generate revenue and improve trade balance.
• Strategic importance: Control over supply chain for critical sectors.

India’s Semiconductor Initiatives:

• India Semiconductor Mission: Develops long-term strategies.
• Production Linked Incentive Scheme: Provides incentives for design and packaging.
• QUAD Semiconductor Supply Chain Initiatives: Collaboration for supply chain security.

Way Ahead:

• Increased global influence in technology.
• Attraction of foreign investment and fostering innovation.
• Stimulus for electronics, telecommunications, and IT sectors.
• Significant contribution to India’s GDP growth.

 

National Urban Co-operative Finance and Development Corporation Limited (NUCFDC) (GS-3, Mains , Economy)

Establishment and Goal:

• Launched by Ministry of Cooperation (March 2024).
• Aims to modernize and strengthen Urban Cooperative Banking (UCBs).

Objectives:

• Raise capital:Target ₹300 crore to support UCBs.
• Specialized services:Financial assistance, consultancy, capacity building for UCBs.
• Shared technology platform:Reduce costs and widen service range for UCBs.
• Facilitate communication & regulation:Bridge between UCBs and regulators.

Current Status:

• Registered as Non-Banking Finance Company (NBFC) and umbrella organization by RBI.
• Allowed to function as Self-Regulatory Organization (SRO) for UCB sector.

Significance:

• Modernization:UCBs can upgrade technology and offer new services.
• Improved services:Enhanced UCB capabilities lead to better financial services for urban customers.
• Stronger cooperative banking:Contributes to financial inclusion and competitive services.
• Grassroots development:Potential for empowering communities across India.

Cooperative Banks in India

• Small financial institutions in urban and non-urban centers.
• Play a vital role in financial inclusion.
• Over 1,500 scheduled and non-scheduled UCBs with 11,000+ branches.
• Deposit size of over ₹5.33 lakh crore and lending of over ₹3.33 lakh crore.

Regulation and Supervision:

• Dual regulation:
  • RBI:Licenses, capital adequacy, regulations (Banking Regulations Act 1949).
  • State Governments:Registration, governance,

Types of Cooperative Banks:

• Primary Cooperative Banks (PCBs)
• State Cooperative Banks (SCBs)
• National Cooperative Banks (NCBs)

Significance of Cooperative Banks:

• Financial inclusion in rural and underserved areas.
• Support agriculture through credit and financial services to farmers.
• Promote savings habits among rural and semi-urban populations.
• Cater to specific local needs with loans for businesses,housing,

Challenges Faced:

• Limited capital base restricts lending capacity.
• Concerns regarding governance practices in some banks.
• Increased competition from commercial banks and microfinance institutions.
• Lag in adopting modern technologies can hinder efficiency and customer service.

Way Ahead:

• Address challenges,embrace technology, and adapt to the evolving financial landscape.
• Continue to play a significant role in financial inclusion and contribute to economic development.

 

Prelims

PM Surya Ghar Muft Bijli Yojana: Free Solar Power for Homes

About the Scheme:

• Provides up to 300 units of free electricity per month to 1 crore families.
• Aims to promote sustainable development and reduce reliance on traditional energy sources.
• Investment: Over ₹75,000 crore.

Implementation:

• Subsidy to install solar panels on rooftops.
• Registration: https://pmsuryaghar.gov.in

Financial Assistance:

• Up to 40% subsidy on solar panel cost.
• Central funding:
  • 60% for installing 2 kW systems.
  • 40% for 2-3 kW systems.
• Higher wattage systems not eligible for subsidy.

Other Features:

• Model Solar Villages to encourage rural adoption.
• Incentives for Urban Local Bodies & Panchayati Raj Institutions for promoting rooftop solar.
• Payment security for renewable energy service companies.
• Fund for innovative rooftop solar projects.

Benefits:

• Free electricity for homes.
• Reduced electricity costs for government.
• Increased renewable energy usage.
• Reduced carbon emissions.
• Job creation in related sectors.

 

PM-JANMAN: Uplifting Particularly Vulnerable Tribal Groups (PVTGs)

About the Scheme:

• Launched in 2023 for FY 2023-24 to 2025-26.
• Aims to provide essential services to PVTG families and communities.

Key Interventions (11):

• Pucca houses (permanent housing).
• Connecting roads for better accessibility.
• Piped water supply for clean drinking water.
• Community water supply for additional water needs.
• Mobile medical units with medicines for healthcare access.
• Construction of hostels for education opportunities.
• Vocational education and skilling for livelihood development.
• Construction of Anganwadi Centres for early childhood care.
• Construction of Multipurpose Centres (MPC) for community needs.

About PVTGs:

• Identified by Dhebar Commission (1973) as a vulnerable subgroup within tribal communities.
• Characteristics:
  • Primitive traits, geographical isolation.
  • Low literacy, negative population growth.
  • Dependent on hunting and pre-agricultural practices.
• Population: 10.45 crore (2011 census) across 18 states and Andaman & Nicobar Islands.
• Highest concentration: Odisha and Madhya Pradesh.

Current Challenge:

• Slow implementation due to data collection of beneficiaries.

 

Financial Intelligence Unit (FIU-IND)

About:

• Central agency under Ministry of Finance (established 2004).
• Analyzes and disseminates information on suspicious financial transactions.
• Coordinates efforts against money laundering and terror financing.
• Reports to Economic Intelligence Council led by Finance Minister.

Recent Action:

• Fined Paytm Payments Bank ₹5.49 crore for violating money laundering prevention rules.

 

National Bank for Financing Infrastructure and Development (NaBFID)

Function:

• Development Finance Institution (DFI) for long-term infrastructure financing in India (established 2021).

Goal:

• Bridge financing gap in infrastructure sector.
• Enable credit flow through innovative instruments (longer loans, blended finance, etc.).

Recent Update:

• Finance Minister reviewed NaBFID’s performance on business, finances, and development initiatives.
• NaBFID operational in public and private sectors.
• Target: Sanction ₹3 lakh crore by March 2026.