Daily Current Affairs 28 August 2020 | UPSC Current Affairs 2020

Current Affairs OF Today Are

1) Great Andaman tribe test COVID-19 positive

Five members of the Great Andamanese tribe, a Particularly Vulnerable Tribal Group (PVTG), have tested positive for COVID19. The Great Andamanese is one of five PVTGs that reside in the Andamans archipelago and this is one of the first cases of COVID19 infection among the endangered PVTGs of the region.
The infections were detected when the administration tested all members of the tribe last week.
Some members travel between Port Blair and Strait Island and a few do odd jobs in the city so they catch the virus.
The Great Andamanese, who number just 74, speak Jeru among themselves. The five PVTGS residing in Andamans are Great Andamanese, Jarawas, Onges, Shompens, and North Sentinelese.
Meanwhile, the administration has also tested 35 members of the Onge tribe, who reside primarily on the Dugong Creek of the Little Andaman Island. All the test reports are negative
Emphasizing that the administration was making all efforts to contain the spread of the virus among the PVTGs
The Shompen and North Sentinelese, who live in isolation, are difficult to reach out to and contact.

Particularly Vulnerable Tribal Groups (PVTGs)

In India, the tribal population makes up 8.6% of the total population.
PVTGs are more vulnerable among the tribal groups. Due to this factor, more developed and assertive tribal groups take a major chunk of the tribal development funds because of which PVTGs need more funds directed for their development.
In 1973, the Dhebar Commission created Primitive Tribal Groups (PTGs) as a separate category, which are less developed among the tribal groups. In 2006, the Government of India renamed the PTGs as PVTGs.
In this context, in 1975, the Government of India initiated to identify the most vulnerable tribal groups as a separate category called PVTGs and declared 52 such groups, while in 1993 an additional 23 groups were added to the category, making it a total of 75 PVTGs out of 705 Scheduled Tribes.
PVTGs have some basic characteristics - they are mostly homogenous, with a small population, relatively physically isolated, absence of written language, relatively simple technology and a slower rate of change, etc.
Among the 75 listed PVTG’s the highest number is found in Odisha.

Source: The Hindu

2) Solar tariff in India unlikely to beat Gulf rates

The per unit cost of solar power in India, considered among the cheapest in the world, is unlikely to cost less than what it is in Gulf countries, according to an analysis by an energy think tank. This is primarily due to the lower cost of finance in the countries in the region along with factors such as cheaper land prices.
Recent recordlow tariffs in Abu Dhabi, Dubai, Saudi Arabia and Qatar are the result of the lower cost of U.S. dollar-denominated, longdated financing, with major tax concessions and other factors driving prices down in the region India and other countries will struggle to secure the same low tariffs discovered in the Gulf auctions
“It would be extremely difficult for the Indian market to replicate the combination of factors leading to low solar tariffs in the Gulf region
The Gulf region has achieved tariffs in the range of U.S. cent 1.351.80/kWh, and (outside the Gulf region) Portugal was able to offer a recordlow tariff discovery cost of U.S. cent 1.32/kWh at a recent bid at a 700MW solar energy auction on August 24, 2020. (1 cent = ₹0.7 approx.)
India’s tariffs, some of the lowest in the world, are about twice that in the Gulf region or around U.S. cent 3.143.25/kWh, the report noted.
To arrive at their figures, the authors used mathematical modelling and compared two kinds of projects in India
That were typical of solar power installations in India and one project in Abu Dhabi as well as expert feedback from industry experts
We note the ongoing technological development of solar combined with ever larger factories driving economies of scale means solar tariffs will continue to see 5-10% annual declines over the coming decade, driving everstronger competitiveness against incumbent fossil fuel alternatives

Source: The Hindu

3) Pradhan Mantri Jan-Dhan Yojana (PMJDY)

Pradhan Mantri Jan-Dhan Yojana (PMJDY) - National Mission for Financial Inclusion, completes six years of successful implementation
Ministry of Finance is committed to provide financial inclusiveness and support to the marginalized and hitherto socio-economically neglected classes. Financial Inclusion is a national priority of the Government as it is an enabler for inclusive growth. It is important as it provides an avenue to the poor for bringing their savings into the formal financial system, an avenue to remit money to their families in villages besides taking them out of the clutches of the usurious money lenders. A key initiative towards this commitment is the Pradhan Mantri Jan Dhan Yojna (PMJDY), which is one of the biggest financial inclusion initiatives in the world.
Pradhan Mantri Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.

Objectives:

Ensure access of financial products & services at an affordable cost
Use of technology to lower cost & widen reach

Basic tenets of the scheme

Banking the unbanked - Opening of basic savings bank deposit (BSBD) account with minimal paperwork, relaxed KYC, e-KYC, account opening in camp mode, zero balance & zero charges
Securing the unsecured - Issuance of Indigenous Debit cards for cash withdrawals & payments at merchant locations, with free accident insurance coverage of Rs. 2 lakh
Funding the unfunded - Other financial products like micro-insurance, overdraft for consumption, micro-pension & micro-credit

Initial Features

The scheme was launched based upon the following 6 pillars:

Universal access to banking services – Branch and BC
Basic savings bank accounts with overdraft facility of Rs. 10,000/- to every household
Financial Literacy Program– Promoting savings, use of ATMs, getting ready for credit, availing insurance and pensions, using basic mobile phones for banking
Creation of Credit Guarantee Fund – To provide banks some guarantee against defaults
Insurance – Accident cover up to Rs. 1,00,000 and life cover of Rs. 30,000 on account opened between 15 Aug 2014 to 31 January 2015
Pension scheme for Unorganized sector

Important approach adopted in PMJDY based on past experience:

Accounts opened are online accounts in core banking system of banks, in place of earlier method of offline accounts opening with technology lock-in with the vendor
Inter-operability through RuPay debit card or Aadhaar enabled Payment System (AePS)
Fixed-point Business Correspondents
Simplified KYC / e-KYC in place of cumbersome KYC formalities

Extension of PMJDY with New features

The Government decided to extend the comprehensive PMJDY program beyond 28.8.2018 with some modifications

Focus shift from ‘Every Household’ to Every Unbanked Adult’
RuPay Card Insurance - Free accidental insurance cover on RuPay cards increased from Rs. 1 lakh to Rs. 2 lakh for PMJDY accounts opened after 28.8.2018.
Enhancement in overdraft facilities -

OD limit doubled from Rs 5,000/- to Rs 10,000/-; OD upto Rs 2,000/- (without conditions).
Increase in upper age limit for OD from 60 to 65 years

Jan Dhan Darshak App

A mobile application, was launched to provide a citizen centric platform for locating banking touch points such as bank branches, ATMs, Bank Mitras, Post Offices, etc. in the country. Over 8 lakh banking touchpoints have been mapped on the GIS App. The facilities under Jan Dhan Darshak App could be availed as per the need and convenience of common people. The web version of this application could be accessed at the link http://findmybank.gov.in.
This app is also being used for identifying villages which are not served by banking touchpoints within 5 km. these identified villages are then allocated to various banks by concerned SLBCs for opening of banking outlets. The efforts have resulted in significant decrease in number of such villages.

Pradhan Mantri Garib Kalyan Package (PMGKP) for PMJDY women beneficieries

As per announcement made by the Hon’ble Finance Minister on 26.3.2020, under PM Garib Kalyan Yojana, an amount of Rs. 500/- per month for three months (April’20 to June’20), was credited to the accounts of women account holders under Pradhan Mantri Jan Dhan Yojana (PMJDY). A total of Rs. 30,705 crore have been credited in accounts of women PMJDY account holders during April-June, 2020.

Towards ensuring smooth DBT transactions:

As informed by banks, about 8 crore PMJDY accountholders receive direct benefit transfer (DBT) from the Government under various schemes. To ensure that the eligible beneficiaries receive their DBT in time, the Department takes active role in identification of avoidable reasons for DBT failures in consultation with DBT Mission, NPCI, banks and various other Ministries. With close monitoring in this regard through regular VCs with banks and NPCI, the number of DBT failure due to avaoidable reasons has observed significant decline from 5.23 lakh (0.20%) in Apr’19 to 1.1 lakh (0.04%) in Jun’20.

The road ahead

Endeavour to ensure coverage of PMJDY account holders under micro insurance schemes. Eligible PMJDY accountholders will be sought to be covered under PMJJBY and PMSBY. Banks have already been communicated about the same.
Promotion of digital payments including RuPay debit card usage amongst PMJDY accountholders through creation of acceptance infrastructure across India
Improving access of PMJDY account holders to Micro-credit and micro investment such as flexi-recurring deposit etc.

Source: PIB

4) Bureau of Police Research and Development (BPR&D)

The Bureau of Police Research and Development is celebrating its Golden Jubilee Anniversary on 28th August, 2020
The Bureau of Police Research and Development was raised on 28th August, 1970, through a resolution of Ministry of Home Affairs, Government of India, with a mandate to promote excellence in policing, promote speedy and systematic study of police problems, apply science and technology in the method and techniques by the Police. The Bureau was initially started with two Divisions, i.e., Research, Publication & Statistics Division and Development Division. In 1973, the Training Division was added, on the recommendation of the Gore Committee on Police training. In 1995, Correctional Division was started to study the issues of Prisons and Prison Reforms. In 2008, the National Police Mission was added and Development Division was restructured as Modernization Division.
Over the years, the BPR&D has transformed through several additions of responsibilities into the present role. Now, with the raising of a new unit, Central Academy for Police Training at Bhopal, specialized as Centre of Excellence for Police & Correctional Administration, BPR&D has 6 outlying units.
The journey of BPR&D, over the last 5 decades, has been spectacular as it has played a vital role in shaping the Indian Police. It has prepared the Police Forces through its training interventions and capacity building programmes, through research and National Mission projects, through various modernization initiatives to keep the Police Forces in pace with latest change and challenges. In the last 5 years, BPR&D has focussed on capacity building of the police officials and has trained about 55,000 Officers and men.

Source: PIB

5) Economic Measures Suggested by McKinsey

Recently, the McKinsey Global Institute (MGI) has released a report titled 'India's turning point: An economic agenda to spur growth and jobs'.
The report identifies a reform agenda that could be implemented in the next 12 to 18 months to increase productivity and create jobs.

Data Analysis:

Increasing Workforce: Given the increasing urbanisation and population trends, there will be 90 million additional workers in search of non-farm jobs by 2030.
Triple Job Creation: To cater to that, India will have to triple job creation to 12 million gainful non-farm jobs per year from the 4 million achieved between 2013 to 2018.
Required GDP Growth: The Gross Domestic Product (GDP), which is set to contract by over 5% in 2020-21, needs to go up to 8-8.5% per annum for the next decade to create the opportunities in the post Covid-19 era.
Promising Sectors: Manufacturing and the construction sectors offer the most opportunities for economic growth and also for higher employment.
Risk of Stagnation: The country risks a decade of stagnating incomes and quality of life if urgent steps are not taken to spur growth.

Measures Suggested:

Global Shift: Global trends such as digitization and automation, shifting supply chains, urbanization, rising incomes and demographic shifts, and a greater focus on sustainability, health, and safety can become the hallmarks of the post pandemic economy.
Higher Productivity through Privatisation: Privatisation of 30 or so of the largest state-owned enterprises to potentially double their productivity.
Government also had a focus on privatisation under the Aatmanirbhar Bharat Package.
Sector Specific Focus: Framing sector-specific pro-growth policies to attract investment in manufacturing, real estate, agriculture, healthcare and retail.
Labour Reforms: Creation of flexible labour markets for industry with better benefits and safety nets for workers.
Improvement in Infrastructure: India needs to unlock supply in land markets to reduce land costs by 20-25%, enable efficient power distribution to reduce commercial and industrial tariffs by 20-25%; and improve the ease and reduce the cost of doing business.
Going Big: India needs to triple its number of large firms having revenues of over USD 500 million.
Efficient Financing: Streamlining fiscal resources can deliver USD 2.4 trillion in investment while boosting entrepreneurship by lowering the cost of capital for enterprises by about 3.5 percentage points.
Measures are required to channel more household savings to capital markets, to reduce the cost of credit intermediation, and to streamline government finance.
Bad Bank: Creation of a ‘bad bank’ can take care of the inoperative assets.
Responsibility for Reforms: A bulk 60% of the reforms will have to be undertaken by states and the remaining 40% by the Centre.

Source: Mint

6) Assessment of Economic Impact of Covid-19: DSGE Model

The Reserve Bank of India (RBI) is using Dynamic Stochastic General Equilibrium (DSGE) model to provide a tentative and proximate assessment of the likely impact of Covid-19 and the subsequent lockdown on the Indian economy.

DSGE Model:

DSGE modelling is a method in macroeconomics that attempts to explain economic phenomena, such as economic growth and business cycles, and the effects of economic policy, through econometric models based on applied general equilibrium theory and economic principles.
Econometrics is the application of statistical methods to economic data in order to give empirical content to economic relationships.
General Equilibrium Theory is a macroeconomic theory that explains how supply and demand in an economy with many markets interact dynamically and eventually culminate in an equilibrium of prices.
RBI has considered three main economic agents, viz., households, firms and the government.
Because of lockdown, households have to stay at home and therefore, reduced labour supply to firms and consumption and income fall due to non-availability of non-essential items.

Possible Scenarios under the DSGE Model:

First scenario i.e lockdown I which impacts the supply side of the economy by decreasing the labour supply and its productivity.
Second scenario i.e lockdown II, which additionally considers the increase in marginal cost i.e. the additional cost incurred in the production of one more unit of a good or service.
Inflation is expected to decline under both the first and second scenario.
Under the first scenario production cut is less severe, but demand contraction is more pronounced due to a rise in infections.
In the second scenario firms will curtail production as profits take a hit, wages see a lower rise and the economy goes through a large contraction.
However, the recovery from the pandemic is faster in the lockdown scenario on account of fewer opportunities for people-to-people interactions.
RBI has calibrated the DSGE model for the above two scenarios by assuming that:
Covid-19 infections peak around the second half of August 2020.
The output gap (difference between the actual and the potential output) reduces to about 12% of potential output when the economy is worst hit.
In both the scenarios of two lockdowns, the decline in economic activity reaches its bottom in April-June quarter of 2020-21 and recovers thereafter, with growth turning gradually positive from January-March quarter 2020-21.
Third scenario i.e the government does not impose a lockdown, the pandemic is more widespread and peaks in the second half of January 2021 with a very slow recovery.
This will cause a persistent labour shortage and the supply shock will increase the inflation and reduce the output.

Source: Indian Express

7) Multi-State Phishing Scam

Recently, Haryana Police has identified a phishing racket which accessed over 300 nationalized and private bank accounts across many states.
Frauds were done with Phishing and use of e-SIMs as the main conduit.
Phishing: It is a cybercrime in which a target or targets are contacted by email, telephone, or text message.
This is done by someone posing as a legitimate institution to lure individuals into providing sensitive data such as personally identifiable information, banking and credit card details, and passwords.
e-SIM: It is the Subscriber Identification Module (SIM) embedded in the phone.
It can not be removed as opposed to physical SIM cards, which can be removed.
The e-SIMs enable users to change service providers through a simple process.
Multiple networks and numbers can be stored on a single e-SIM too, so one can have more than one number.

Online Monetary Frauds in India:

According to the Reserve Bank of India (RBI), in 2019-20, banks reported 2,678 card and internet-related fraud, totalling Rs. 195 crore in value, which was more than double the value of such frauds reported by banks in 2018-19.
In the current fiscal (2020-21), between April and June, banks reported 530 fraudulent transactions involving debit and credit cards, or techniques such as phishing done over the internet.

Steps taken:

RBI is taking measures to improve awareness related to cybersafety among people through:
e-BAAT (Electronic Banking Awareness And Training) programmes.
Organising campaigns on safe use of digital payment modes, to avoid sharing critical personal information like PIN, OTP, passwords, etc.
RBI has also directed all banks and authorised payment system operators to undertake targeted multi-lingual campaigns by way of SMS, advertisements in print and visual media to educate their users on safe and secure use of digital payments.
The Computer Emergency Response Team (CERT-in) functions as the nodal agency for coordination of all cyber security efforts, emergency responses, and crisis management.

Source: Indian Express

8) Draft Health Data Management Policy

The National Health Authority (NHA) has released the Draft Health Data Management Policy of the National Digital Health Mission (NDHM) in the public domain for comments and feedback.
NHA is the apex agency of the Government of India responsible for the design, roll- out, implementation and management of Ayushman Bharat and the National Digital Health Mission (NDHM) across the country.
The draft health data management policy acts as a guidance document to set out the minimum standard for health data privacy protection.
Purpose: To create a National Digital Health Ecosystem that supports Universal Health Coverage in an efficient, accessible, inclusive, affordable, timely and safe manner, through provision of a wide-range of data, information and infrastructure services ensuring the security, confidentiality and privacy of health-related personal information.

Objectives:

Provide adequate guidance and to set out a framework for the secure processing of personal and sensitive personal data of individuals.
b digital personal health data like medical conditions, reproductive outcomes, prescriptions and diagnosis etc.
Create a system of digital personal and medical health records which is easily accessible to individuals and health service providers and is purely voluntary in nature, based on the consent of individuals, and in compliance with international standards.
Increase awareness of the importance of data privacy.
Ensure national portability in the provision of health services.
Establish appropriate institutional mechanisms for auditing of the National Digital Health Ecosystem.
Leverage the information systems existing in the Indian health sector.

Background:

The Ministry of Health and Family Welfare released the National Health Policy, 2017 which envisaged creation of a digital health technology eco-system aiming at developing an integrated health information system.
A committee headed by former Unique Identification Authority of India (UIDAI) chairman released the National Digital Health Blueprint (NDHB) in July 2019.
NDHB recognised the need to establish a specialised organisation, called the National Digital Health Mission (NDHM), to facilitate the evolution of the National Digital Health Ecosystem.
The Prime Minister announced the launch of NDH on 74th Independence Day i.e. 15th August, 2020.

Way Forward

With the emergence of Big Data and increase in online data management, concerns around the protection of different kinds of sensitive personal information of individuals are being raised globally. Although India has realized the right to privacy, it is yet to roll out laws for protection of different kinds of datasets being used by the government, like Aadhar, DNA profiling, Aarogya Setu etc. The Draft Health Data Management Policy is a proactive initiative for protecting the health data of citizens before the creation of its repository.

Source: The Hindu

9) Integration of e-PPO with Digi Locker

The Ministry of Personnel, Public Grievances & Pensions has decided to integrate the electronic Pension Payment Order (e-PPO) with Digi Locker.
The decision has been taken to enhance ease of living of central government civil pensioners.
e-PPO is generated through the Public Finance Management System (PFMS).

Benefits of the Decision:

This initiative will create a permanent record of pensioners' respective PPO in their Digi Locker and eliminate the necessity of handing over a physical copy.
Further, it will eliminate delays in reaching the PPO to new Pensioners

Process:

The integration facility has been created with ‘Bhavishya’ software. Bhavishya will provide an option to retiring employees, to link their Digi-locker account with their “Bhavishya” account and obtain their e-PPO in a seamless manner.
Bhavishya is an online Pension Sanction and Payment Tracking System implemented by the Ministry of Personnel, Public Grievances & Pensions.
Pension tracking can be done by the individual as well as the administrative authorities for all actions preparatory to grant of pension and other retirement benefits as well as monthly pension paid after retirement.

Public Financial Management System

The Public Financial Management System (PFMS), earlier known as Central Plan Schemes Monitoring System (CPSMS), is a web-based online software application developed and implemented by the Office of Controller General of Accounts (CGA), Ministry of Finance.
PFMS was initially started during 2009 as a Central Sector Scheme of Planning Commission.
The primary objective of PFMS is to facilitate a sound Public Financial Management System for the Government of India (GoI) by establishing an efficient fund flow system as well as a payment cum accounting network.

Digi Locker

It is a flagship initiative of the Ministry of Electronics & IT (MeitY) under the Digital India programme. It is the national Digital Locker System.
It aims at ‘Digital Empowerment’ of citizens by providing access to authentic digital documents to citizen’s digital document wallet.

Source: PIB

10) States have to borrow from RBI

The Centre acknowledged that States are likely to face a GST revenue gap of ₹3 lakh crore this year, as the economy may contract due to COVID-19, which Finance Minister Nirmala Sitharaman termed an unforeseen “act of God”.
As you all know that when GST was implemented on 1st July 2017, States were promised a (indirect) tax revenue growth of 14% annually for five year till 30th June 2022. It was done so because States were not agreeing to implement GST and they were worried that tax revenue can decrease. So, GST act promised States that if there is any shortfall (i.e. below 14% growth) then they would be compensated by levying a CESS on Luxory and Sin goods
Now, it is expected that there will be a shortfall of around Rs. 3 lakh crore this year (2020-21). Centre is suggesting that out of this shortfall of Rs. 3 lakh crore....... Rs. 65,000 crore can be compensated by imposing Cess (try to understand that Cess also can be increased only till certain limit otherwise the demand of those goods will reduce during this Covid crisis and imposing cess will not help).
Out of the rest Rs. 2.35 lakh crore, Centre is saying that only Rs. 97000 crore is because of GST implementation and rest Rs. 1.38 lakh crore is because of Covid (which is an Act of God and centre is not responsible for it). And hence Centre will take care of how Rs. 97,000 crore is given to States.

Centre has proposed TWO OPTIONS:

Option 1: States can be provided this Rs. 97,000 crore (under a special borrowing window facilitated by RBI) at a reasonable interest rate by consulting with RBI and this amount (interest + principal) can be repaid by imposing cess after 5 years.
Option 2: States can be provided entire Rs. 2.35 lakh crore (under a special borrowing window facilitated by RBI) at a reasonable interest rate by consulting with RBI and this amount (interest + principal) can be repaid by imposing cess after 5 years.
But if States will opt for Option 1, then they can be allowed for further relaxation of 0.5% in their Fiscal Deficit limit in their FRBM Act. (Actually Centre has already allowed 2% relaxation in States fiscal deficit from 3% to 5% because of this Covid under Aatman Nirbhar Bharat) ................. (Its nowhere written that States require Centre approval to increase their Fiscal Deficit Limit, but as per Constitution if States have taken debt from Centre then they require Centre approval to take any extra debt from anywhere. And the fact is that almost all States have taken debt from Centre).

Source: The Hindu

11) Pulikkali Folk Art of Kerala

Daily Current Affairs 28 August 2020 | UPSC Current Affairs 2020 Daily News Teller

Pulikkali will be held online in Kerala this year due to Covid-19 pandemic.
Pulikkali (Puli means Leopard/Tiger and Kali means Play in Malayalam) is a recreational street folk art performed on the fourth day of Onam celebrations.
Onam (August–September) is a Hindu rice harvest festival of Kerala celebrated to commemorate King Mahabali.
The folk art is mainly practiced in Thrissur district of Kerala.
The main theme of this folk art is tiger hunting with participants playing the role of tiger and hunter.
Performers paint their bodies like tigers and hunters and dance on streets to the beats of traditional percussion instruments such as thakil, udukku and chenda.
It was introduced by Maharaja Rama Varma Sakthan Thampuran, the then Maharaja of Cochin.
Another key event which takes place during Onam is Aranmula Boat Race, the oldest river boat festival in Kerala.
It takes place at Aranmula in Pampa river, near a Sree Parthasarathy temple in Pathanamthitta district of Kerala.