Daily Current Affairs 11 August 2020 | UPSC Current Affairs 2020

 Current Affairs Of Today Are


    1) Connectivity to Andaman & Nicobar Islands (CANI)

    • Prime Minister Shri Narendra Modi today launched and dedicated to the nation, the submarine Optical Fibre Cable (OFC) connecting Andaman & Nicobar Islands to the mainland. The foundation stone for this project was laid by the PM on 30th December 2018 at Port Blair.
    • The connectivity would now enable endless opportunities in the islands
    • 2300 km submarine cable and completing it before the set target is very praiseworthy.
    • The laying of cables for about 2300 kilometers under the sea as surveying in the deep sea, maintaining the quality of the cable, and laying of the cable with specialized vessels is not an easy task. The project also had to overcome challenges such as high waves, storms and monsoons and the tough times owing to Corona Pandemic.
    • The service had begun on a major chunk of the islands from Chennai to Port Blair, Port Blair to Little Andaman, and Port Blair to Swaraj Island.
    • the Submarine Cable will help A&N in getting cheaper & better connectivity and all the benefits of Digital India, especially in improving online education, telemedicine, banking system, online trading, and boosting tourism.
    •  the Indian Ocean has been the center of India's trade and strategic prowess for thousands of years and that Andaman & Nicobar is an important center for India’s Economic-Strategic Cooperation.
    • under the Act-East policy, the role of Andaman and Nicobar in India's strong relations with East Asian countries and other countries connected to the sea is very high and is going to increase.
    • the blue economy like Fisheries, Aquaculture, and SeaWeed farming on the island will accelerate incommensurate with the modern infrastructure being developed in Andaman and Nicobar.
    • Andaman & Nicobar will be developed as a hub of Port Led Development as it is at a Competitive Distance from many ports of the World.

    Submarine Communications Cable

    • It is a cable laid on the seabed between land-based stations to transmit telecommunication signals across stretches of ocean and sea.
    • The optical fiber elements are typically coated with plastic layers and contained in a protective tube suitable for the environment where the cable will be deployed.
    • Compared to satellites, using internet connection through submarine cables is more reliable, cost-efficient, and large capacity.
    Source: PIB

    2) Finance Minister launches an Online Dashboard for the National Infrastructure Pipeline

    • Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman inaugurated the National Infrastructure Pipeline (NIP) Online Dashboard
    • The online dashboard is envisaged as a one-stop solution for all stakeholders looking for information on infrastructure projects in New India. The dashboard is being hosted on the India Investment Grid (IIG)
    • IIG is an interactive and dynamic online platform that showcases updated & real-time investment opportunities in the country.
    • India Investment Grid (IIG) (www.indiainvestmentgrid.gov.in), is an interactive and dynamic online platform to showcase the best of investment opportunities in India to the global investor community. Developed and managed by Invest India, the National Investment Promotion and Facilitation Agency, IIG serves as the gateway to investments in India and is also widely used by Indian missions and embassies across the world. IIG allows investors to:
      • Search a pan-India database for investment opportunities across sectors
      • Track the progress of preferred projects and indicate interest
      • Directly communicate with project promoters
    • In the budget speech of 2019-2020, Finance Minister Smt. Sitharaman announced an outlay of Rs 100 lakh Crore for infrastructure projects over the next 5 years.
    • In furtherance to this, a high-level Task Force submitted a final report on the National Infrastructure Pipeline with projected infrastructure investment of Rs 111 Lakh Crore during FY 2020-25.
    • NIP is a first-of-its-kind initiative to provide world-class infrastructure across the country and improve the quality of life for all citizens. NIP will improve project preparation, attract investments (both domestic & foreign) into infrastructure, and will be crucial for attaining the target of becoming a $5 trillion economy by FY 2025. NIP covers both economic and social infrastructure projects- based on the updated Harmonized Master List of Infrastructure.
    • Out of the total expected capital expenditure of Rs 111 lakh Crore, projects worth Rs 44 lakh Crore (40%) are under implementation, projects worth Rs 33 lakh Crore (30%) are at a conceptual stage, projects worth Rs 22 lakh Crore (20%) are under development (project identified and DPR prepared, but yet to draw-down funds) and the balance projects worth Rs 11 lakh Crore (10%) are unclassified. The entire gamut of projects will now be hosted on IIG to provide visibility to NIP and attract investments from global & domestic investors.
    Source: PIB

    3) World Biofuel day

    • A webinar on the occasion of the World Biofuel day was organized by the Ministry of Petroleum and Natural Gas, with the theme “Biofuels towards Atmanirbhar Bharat”. World Biofuel Day is observed every year on 10th August to create awareness about the importance of non-fossil fuels as an alternative to conventional fossil fuels and to highlight the various efforts made by the Government in the Biofuel sector. World Biofuel Day is being celebrated by the Ministry of Petroleum and Natural Gas since 2015.
    • Biofuels program is also in synergy with the Government of India’s initiative of Atmanirbhar Bharat and accordingly, the theme for World Biofuel Day 2020 has been chosen. Given the Corona/ Covid-19 pandemic, the function was held through a webinar this year.
    • This day also honors the research experiments by Sir Rudolf Diesel who ran an engine with peanut oil in the year 1893. His research experiment had predicted that vegetable oil is going to replace fossil fuels in the next century to fuel different mechanical engines.
    • Biofuels have multiple benefits such as a reduction in import dependence, ensuring a cleaner environment, generating additional income for farmers and employment generation. Since, 2014, the Government of India has taken several initiatives to increase the blending of biofuels. The major initiatives include administrative price mechanism for ethanol, simplifying the procurement procedures by OMCs, amending the provisions of Industries (Development & Regulation) Act, 1951, Long term ethanol procurement policy, ethanol distillation capacity addition and enabling lignocellulosic route for ethanol procurement. Under the Ethanol Blending Program, OMCs have procured 113.09 Crore liters of Biodiesel from 01.12.19 to 03.08.20. Under the Biodiesel blending Program, OMCs have increased biodiesel procurement from 1.1 crore liters during 2015-16 to 10.6 crore liters during 2019-20.
    Source: PIB

    4) Himalayan Geothermal Springs release a huge amount of carbon dioxide in the atmosphere

    Daily Current Affairs 11 August 2020 | UPSC Current Affairs 2020
    Schematic model for geogenic CO2 degassing. Background data: a Location of geothermal springs of study area plotted on geological map of the northwest (Garhwal) Himalaya obtained from Valdiya (1999); b Schematic degassing model of the study area adopted from Becker et al. (2008); c Background is the resistivity along our study area adopted from Caldwell et al. (2013)

    • Carbon outflux from Earth’s interior to the exosphere through volcanic eruptions, fault zones, and geothermal systems contribute to the global carbon cycle that affects the short and long term climate of the Earth. Himalaya hosts about 600 geothermal springs having varied temperature and chemical conditions. Their role in regional and global climate, as well as the process of tectonic driven gas emission, needs to be considered while estimating emissions to the carbon cycle and thereby to global warming.
    • The Himalayan geothermal springs which cover about 10,000 square km in the Garhwal region of Himalaya show a significant discharge of  Carbon dioxide(CO2) rich water. This was found by the Wadia Institute of Himalayan Geology, an autonomous institute under the Department of Science & Technology, Govt. of India, which investigated and characterized the gas emissions from these springs. The estimated carbon dioxide degassing (removal of dissolved gases from liquids, especially water or aqueous solutions) flux is nearly 7.2 ×106 mol/year to the atmosphere.
    • The study published in the scientific journal Environmental Science and Pollution Research suggested that CO2 in these thermal springs are sourced from metamorphic decarbonation of carbonate rocks present deep in the Himalayan core along with magmatism and oxidation of graphite. Most of the geothermal water is dominated by evaporation followed by weathering of silicate rocks. Isotopic analyses further point towards a meteoric source for geothermal water.
    • The team of scientists carried out detailed chemical and stable isotope analysis of water samples collected from 20 geothermal springs from major fault zones of Garhwal Himalaya. Isotopic measurements (identification of the abundance of certain stable isotopes and chemical elements within organic and inorganic compounds) such as Dissolved Inorganic Carbon (δ13CDIC ), and Oxygen (δ18O) along with major ions were analyzed for all the samples.
    • They found that the geothermal spring water contains high Dissolved Inorganic Carbon δ13CDIC ratio (− 8.5‰to + 4.0‰VPDB), and among the major ions, bicarbonate (HCO3−) varied between 1697 to 21,553 μEq/L; chloride and sodium ranged between 90 to 19,171 μEq/L and 436 to 23181 μEq/L. A high concentration of Cl− and Na+ in geothermal spring waters indicated its deeper source.
    • Simulation studies done by the WIHG team suggest that these geothermal springs have the potential to degas~7.2 × 106 mol of CO2 per year to the atmosphere. Estimated flux from this study is comparable to the release of CO2 during the uplift of the Himalaya (~1011 mol/year) and
    • sub-aerial volcanism (1012 mol/year) in the atmosphere. Such CO2 degassing should be taken into account to assess global carbon outflux in the earth’s atmosphere.
    Source: PIB

    5) Hydrogen Evolution

    Daily Current Affairs 11 August 2020 | UPSC Current Affairs 2020

    • To phase out fossil fuels and combat climate change, hydrogen is projected as one of the next generation low carbon fuels. The future of the use of hydrogen as a fuel lies in the design of efficient electrocatalysts for facilitating electrochemical splitting of water to produce hydrogen.
    • The effectiveness of the electrocatalyst for the hydrogen (H2) evolution reaction (HER) largely depends on its durability (robustness), ability to lower the overpotential of an electrochemical reaction maximally, and cost of synthesis (production). The commercially used Platinum (Pt) / Carbon (C) catalysts are efficient but expensive and suffer from metal ion leaching or electrocatalyst corrosion when used for a long duration.
    • Metal-organic frameworks (MOFs) and coordination polymers (COPs) are envisioned as the next generation catalysts as they can be tailored to achieve high surface area, less charge transfer resistance, and higher active sites for enhancing the efficiency of water splitting. Scientists have been searching for a novel approach for tuning of MOF based catalysts to prevent electrocatalyst corrosion.
    • Researchers from the Centre for Nano and Soft Matter Sciences (CeNS) an autonomous institute under the Department of Science and Technology (DST), Government of India have synthesized a novel COP consisting of palladium Pd(II) ions, that serve as a source of active sites for H-adsorption, and benzene tetramine (BTA) chelating ligands capable of better charge transfer. The two combine to form two-dimensional (2D) sheets of Pd(BTA) through the H-bond interactions. The research has been published in the journal ‘ACS Applied Energy Materials’.
    • The 2D Pd(BTA) sheets developed by the CeNS team were combined with reduced graphene oxide 2D sheets (rGO), to enhance the conductivity, and subjected to partial reduction to obtain Pd nanoparticles (NPs) encapsulated in COP-rGO composite 2D sheets/layers, promoting active sites for HER. The above catalyst, labeled as [Pd(BTA)-rGO]red, exhibited a remarkably less overpotential (potential difference between a half-reaction's thermodynamically determined reduction potential and the potential at which the redox event is experimentally observed. It is directly related to a cell's voltage efficiency). The COP based catalyst exhibited exceptionally high durability for 70 h at a high current density of −300 mA/ cm2. A study by the CeNS team revealed that the Pd nanoparticles of size 3−5 nm (nanometer) are the root cause for the remarkable electrocatalytic activity of [Pd(BTA)-rGO]red.
    • Thus, a combination of high activity due to Pd nanoparticles, less charge transfer resistance of rGO, and stability rendered by encapsulation of Pd nanoparticles by 2D sheets work in favor of the high efficiency and durability of the composite material. The researchers also state that ‘this technique of organic ligand encapsulation of metals/metal ions on conducting platform can be adopted for other metal-based electrocatalysts to attain exceptional long term catalytic stability.
    • Developing efficient means of splitting water to produce hydrogen and obtaining the energy required for it from solar energy would be a significant part of the sustainable and green solutions for our energy needs
    Source: PIB

    6) Modernization/ up-gradation of facilities and new infrastructure creation of Defence PSUs and OFB

    • Raksha Mantri Shri Rajnath Singh launched the initiatives of several modernization and up-gradation of facilities as also new infrastructure creation by Defence PSUs and OFB
    • Under upgradation of facilities, Pinaka Rocket Complex at Ordnance Factory Chanda has launched Upgradation of facilities to meet the enhanced requirement of Pinaka and other rockets as well as the Assembly and testing facility for SRCG at OF, Trichy all of which are critical requirements towards defense preparedness. Modernization of facilities at OLF Dehradun will serve the purpose of the manufacturing of high-end Optoelectronic products for T-90 Tanks. 
    • BEL has launched a fully indigenized Maareech Integration facility for manufacturing, integration, and testing of Anti Torpedo Defence System Maareech which has been designed by DRDO. 
    • HAL has handed over the 500th AL-31FP overhauled engine to the IAF which are mounted on its most lethal frontline fighter aircraft Su-30MKI. It has been done by the Koraput Division of HAK. 
    • BEML has set up Industrial Design Centre at Bengaluru as part of its new infrastructure creation. The Centre is first of its kind in India, focusing on implementing factors of Industrial Design & Human Factors as a part of developmental strategies for setting the global benchmarking in Industrial Design and Ergonomics in Products. It is proposed to develop this facility further as a national facility and would be offered to the industry in the next stage.        
    • Under the modernization of facilities, GRSE has enhanced the capability at Raja Bagan Dockyard to meet the production requirement for the ongoing prestigious P17A project.         
    • New infrastructure has been created in the defense sector in the shape of foundation laying of Seeker Facility Center (SFC) at BDL, a new modular facility for manufacturing of Missile System (RF Seeker) that will reduce import dependence for seekers and Foundation Laying for Warheads Production Facility at BDL for manufacturing and testing of indigenously developed warheads required for Konkurs-M, Invar, Akash, Astra missiles, etc. The facility being modular will cater to all futuristic missile warheads with incremental modifications. 
    • A new state of art Steel Preparation Shop (SPS) at GSL has been inaugurated today that will enable indigenous construction of high technology Glass Reinforced Plastic (GRP) hull MCMVs along with other supporting infrastructure for the country.
    • MIDHANI under its Corporate Social Responsibility & Sustainable Development Policy has set up a state-of-the-art Skill Development Center and christened it as “Center of Excellence - Special Materials”. This facility will primarily focus on Promoting applied research for the development of Special Materials used in aerospace, defense, nuclear, space, and other strategic areas. 
    • These upgradation/modernization/new set-ups will give tremendous benefit in terms of reducing dependency on foreign resources for production as well as further maintenance, upgradation, and lifetime support, all through safe and sound, indigenous hands
    Source: PIB

    7) Telemedicine Service Platform: eSanjeevani

    • The telemedicine service platforms of the Ministry of Health & Family Welfare i.e. ‘eSanjeevani’ and ‘eSanjeevaniOPD’ have completed 1.5 lakh teleconsultations.
    • The top two States which have registered highest consultations through the platforms are Tamil Nadu (32,035 consultations) and Andhra Pradesh (28,960).
    • Since November 2019, teleconsultation by eSanjeevani and eSanjeevaniOPD have been implemented by 23 States.
    • Both platforms have been developed by the Centre for Development of Advanced Computing (C-DAC) Mohali.
    • C-DAC is the premier R&D organization of the Ministry of Electronics and Information Technology (MeitY) for carrying out R&D in IT, Electronics and associated areas.

    Telemedicine

    • As per the World Health Organisation (WHO), telemedicine is the delivery of health care services, where distance is a critical factor, by all health care professionals using Information Technology (IT) for diagnosis, treatment, and prevention of disease and injuries, research and evaluation, etc, all in the interests of advancing the health of individuals and their communities.
    • Tele-consultation is one of the applications of telemedicine. It uses IT to facilitate communications between a patient and a doctor who are otherwise geographically separated.

    eSanjeevani

    • It is a doctor to doctor telemedicine system, being implemented under the Ayushman Bharat Health and Wellness Centre (AB-HWCs) program.
    • AB-HWCs are envisaged to be the platform for the delivery of an expanded range of primary health care services closer to the communities.
    • It seeks to connect all 1,50,000 HWCs using the hub-and-spoke model by December 2022.
    • Under the model, a network will be established comprising an anchor establishment, or hub, which offers a full array of services, and will be complemented by secondary establishments, or spokes, which offer limited services, routing patients needing more intensive services to the hub for treatment.
    • Presently, telemedicine is being provided through more than 3,000 HWCs in 10 States.

    eSanjeevaniOPD:

    • It was launched amid the Covid-19 pandemic to enable patient-to-doctor teleconsultations.
    • Offered at no cost, this e-health service has made it convenient for the people to avail of the health services without having to travel. It enables two-way interaction and even generates a prescription slip.
    • It is hosting over 40 online Out Patient Department (OPD) services, more than half of these are specialty OPDs which include Gynaecology, Psychiatry, Antiretroviral Therapy (ART) for the AIDS/HIV patients, Non-Communicable Disease (NCD), etc.

    Way Forward

    • These platforms can be a gamechanger for people in rural areas who do not have easy access to medical specialists located in cities.
    • Telemedicine saves time and cost. Further, these platforms are in line with the government’s vision of ‘Digital India’ and necessary to tackle situations created by a pandemic like Covid-19.
    Source: PIB

    8) Andaman and Nicobar Islands to be Maritime and Startup Hub

    • Recently, the Prime Minister has declared that the Andaman and Nicobar islands will be developed as a "maritime and startup hub".
    • A transshipment hub has been proposed in the Andaman and Nicobar islands.
    • A transshipment is when cargo or a container is moved from one vessel to another while in transit to its final destination.
    • It will be built in South Bay, Great Nicobar Island, to provide Indian shoppers an alternative to the Colombo (Sri Lanka), Singapore and Port Klang (Malaysia) transshipment ports.
    • Also, Port Blair airport is to be expanded and some of the islands will be also connected with seaplanes.

    Background:

    • In 2015, the government had announced an ambitious, Rs 10,000 crore economic plan to transform the Andaman and Nicobar Islands into the country’s first maritime hub.
    • This included infrastructure construction, protection of the original Jarawa inhabitants, and boosting the tourism potential.
    • Earlier, India had also invited global investors to develop the Andaman & Nicobar and Lakshadweep islands.
    • The Union Government constituted the Island Development Agency on 1st June 2017 for the development of islands.

    Governance:

    • Better connectivity in the region will facilitate the delivery of e-governance services such as telemedicine and tele-education, as a part of the Digital India initiative.
    • The region will play an important role in his government's self-reliant India project.

    Economic:

    • Small enterprises, Business Process Outsourcing Services and other medium and large enterprises will also benefit from better connectivity and opportunities in e-commerce,
    • This can be leveraged to promote the government’s Startup India initiative.
    • The internet costs will also come down and it will give a boost to tourism and the local economy.
    • The building of a transshipment hub will be critical for India’s trade and help the group of islands become an important center of the blue economy.

    Strategic:

    • The islands are critical for India's security because of its strategic location in the Indian Ocean Region (IOR). Better infrastructure and connectivity will help India enhance its military and naval strength in the islands.
    • The islands are home to India's only tri-services command, the Andaman and Nicobar Command (ANC) which is strategically important, more so, on the backdrop of the Chinese aggression in the region.
    • Earlier this year, China was accused by Vietnam of sinking its sea in its Exclusive Economic Zone.

    International Relations:

    • It will also help India to build better economic relations with the ASEAN region.
    • The importance of the islands has increased in light of India's 'Act East' policy.

    Way Forward

    • The provision of reliable, robust, and high-speed telecom and broadband facilities in these islands will be a landmark achievement from the viewpoint of consumers, as well as for strategic and governance reasons.
    Source: The Hindu

    9) World Tribal Day

    • World Tribal Day or International Day of the World’s Indigenous Peoples is observed on 9th August every year.
    • Aim: The day is aimed at promoting and protecting the rights of the world’s indigenous population and to acknowledge the contributions that indigenous people make towards world issues such as environmental protection.
    • Background: The day recognizes the first meeting of the United Nations Working Group on Indigenous Populations in Geneva in 1982.
    • It has been celebrated every year since 1994, by the declaration by the United Nations.
    • Theme 2020: “Covid-19 and the indigenous peoples’ resilience”

    Tribes in India:

    • According to the 2011 census, tribals make up 8.6% of India's population.
    • There are over 700 tribal groups in India, out of which around 75 are Particularly Vulnerable Tribal Groups (PVTGs).
    • The Gond comprise the largest tribal group of India
    • The largest number of tribal communities (62) are found in Odisha.
    • No Tribe identified in Haryana, Punjab, Chandigarh, Delhi, and Puducherry.

    Constitutional Provisions:

    • Article 342(1)- The President may concerning any State or Union Territory, and where it is a State, after consultation with the Governor, by public notification, specify the tribes or tribal communities or part of or groups within tribes or tribal communities as Scheduled Tribe about that State or Union Territory.
    • Article 15- Prohibition of discrimination on grounds of religion, race, caste, sex, or place of birth only.
    • Article 16- Equality of opportunity in matters of public employment
    • Article 46- Promotion of educational and economic interests of scheduled castes, scheduled tribes, and other weaker sections,
    • Article 335- Claims of Scheduled Castes and Scheduled Tribes to services and posts.
    • As per Article 338-A of the Constitution of India, the National Commission for Scheduled Tribes has been set-up.
    • 5th and 6th Schedule- Administration and control of Scheduled and Tribal Areas.

    Legal Provisions:

    • Protection of Civil Rights Act, 1955 against Untouchability.
    • Scheduled Castes and the Scheduled Tribes (Prevention of Atrocities) Act, 1989 to prevent the commission of offenses of atrocities against the members of the Scheduled Castes and the Scheduled Tribes.
    • Provisions of the Panchayats (Extension to the Scheduled Areas) Act, 1996 to provide for the extension of the provisions of Part IX of the Constitution relating to the Panchayats to the Scheduled Areas.
    • Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006 to recognize and vest the forest rights and occupation in forest land in forest-dwelling scheduled tribes and other traditional forest dwellers.

    Committees Related to Tribal Communities:

    • Xaxa Committee (2013)
    • Bhuria Commission (2002-2004)
    • Lokur Committee (1965)
    Source: AIR

    10) SIPHONING OFF funds

    • SIPHONING OFF funds from term loans of banks through current accounts in other banks by corporates and big borrowers is set to come down. In a bid to prevent the misuse of bank funds, the Reserve Bank of India (RBI) has banned banks from routing funds from term loans taken by borrowers through their current accounts, a common practice among borrowers to divert funds
    • It has also banned a bank from opening current accounts for customers who have availed credit facilities in the form of a cash credit (CC) overdraft (OD)from other banks and stipulated that all transactions should be routed through the CC or OD account. This effectively means banks mostly PSU banks which have given loans will now handle the current accounts of borrowers who, in turn, can’t divert money for other purposes through the current accounts of other banks, mainly private and foreign banks
    • Since term loans are meant for specific purposes, the funds should be remitted directly to the supplier of goods and services
    • Expenses incurred by the borrower for day to day operations should be routed through CC/OD account if the borrower has a CC/OD account, else through a current account,” it said in a notification to banks. Analysts said the RBI move is to prevent misuse of funds by promoters and corporates in the wake of the proposed one-time loan recast scheme.
    • For most corporates, while loans are given by public sector banks' current accounts are managed by private banks. This will stop now. PSU banks which have given credit and overdraft will now manage current accounts as well 
    • TheRBI said the use of multiple operating accounts by borrowers, both current accounts as well as cash credit(CC)and overdraft accounts, has been observed to be prone to vitiating credit discipline

    Term Loans: 

    • These are basically long terms loans for specific projects/purposes. And if a term loan has been given for a specific project, legally it should not be used for other purposes

    Cash credit and overdraft

    • Cash credit and overdraft are two types of short-term financing which financial institutions provide to their customers. Both are used to prevent checks from bouncing or debit cards from being declined when there are insufficient funds in the account. Both are similar but there are few differences:
    • Cash credit is commonly offered to businesses rather than to individual consumers and generally involves some form of collateral.
    • Overdraft is generally offered to retail customers and is attached to a bank savings account. If a customer doesn't have enough funds in their account to complete a transaction, the overdraft covers the difference, allowing the account to go into a negative balance. Overdrafts may not require collateral. But it can be attached to current accounts for businesses also. 
    Earlier Corporates used to term loans from PSU banks and then they used to transfer this borrowed money into a current account maintained with private banks. There were restrictions earlier also not to use this money other than for that project but still, they used to siphon funds for other activities. 
    • NOW, RBI has said that the companies borrowing funds (term loans) from a bank should maintain a current account with that bank only and can't transfer that money to a current account with other banks. So, the bank which will give loan will handle all payments related to the purchase of goods and services for the company.
    • It has also said that, if a customer has availed short term credit facilities (borrowed money) in the form of cash credit or overdraft from a bank then other banks cannot open/provide a current account to that customer. This means that short-term financing like cash credit and overdraft can also not be transferred in another bank's current account and hence will prevent siphoning/diverting of funds.
    • This move of RBI is to prevent misuse of funds by promoters and corporates in the wake of the proposed one-time restructuring scheme. In the restructuring, additional loans are also given.
    Source: Indian Express

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