Daily Current Affairs 11 and 12 September 2020 | UPSC Current Affairs 2020

 Current Affairs Of 11th and 12th September are

1) Deficit Monetization

• Revenue shortfalls in India, the major economy hardest hit by the COVID­19 pandemic, are likely to force the Centre to borrow more, but it will only consider monetizing its deficit as a last resort
• The officials have already discussed the possibility of monetizing the debt, whereby the central bank prints money to bridge the fiscal deficit, but they were in no hurry to return to a bad habit India kicked in 1997.
• There will definitely be higher borrowing in the current year but whether we will print money, that is not yet decided.
• A senior government official said debt monetization was “not the preferred option right now”.
• Aside from potentially harming India’s credit rating, monetization carries inflation risks
• The senior government official said the RBI could ease liquidity through open market operations to keep yields in check while helping the government to raise borrowing, already targeted at a record ₹12 lakh crore.
• RBI has pumped in over ₹11 lakh crore of liquidity into the market, helping to keep 10­year bond yields below 6% even as the government decided to borrow 70% more than last year as a result of the pandemic.
• Officials, however, are still pinning some hopes on raising revenue from the sale of  state­owned firms
• even though they do not expect to meet the divestment target of over ₹2 lakh crore. 
• “The dilemma over deficit monetization is not unique to India,” said Radhika Rao, an economist with DBS. “The primary challenge is to communicate and ensure that this is a one­ off pandemic ­induced arrangement and not a recurrent financing line.”

News Analysis

• Earlier Govt used to 'Monetize the deficit' but this practice was stopped in 1997 by signing an agreement between RBI and Govt. of India. And this was also included in the FRBM Act 2003 wherein "Govt will not monetize the deficit BUT in exceptional circumstances, it can"
• Right now Govt. is not preferring deficit monetization even if Govt. knows that this year they will have to borrow much more than planned. But Govt. can consider deficit monetization as the last resort.
• Deficit monetization leads to extra money reaching into the economy which leads to inflation and it also may lead to a 'Sovereign Ratings' downgrade which then hurts investments in the country.
• RBI can pump liquidity into the economy through the open market operation. This will lead to a decrease in interest rate (more money supply less interest rate, the simple concept of demand and supply), which will basically help govt in raising money from the market ('deficit financing' rather than 'monetization of deficit') at a lesser interest rate.
• As such, there is no problem that in exceptional circumstances govt does 'monetization of deficit' JUST FOR ONCE. But the problem with India is that, once it's done, then it lures future governments of an easy route of financing their deficit. And foreign investors also understand this, so once done, they think that govt may resort in the future also and they get concerned about inflation and it also results in currency depreciation leading to loss to investors (during conversion) once they return to their home countries. And this govt is trying everything to bring in new investments and luring manufacturing firms from China. That is why Govt. is saying monetization of the deficit will be the last option. 
• And OPPOSITION is also pressurizing a lot that the govt. should spend more money/cash into the economy basically giving money to the poor people. 

"Monetising the Deficit" OR "Monetizing the Debt" OR "Deficit Monetization":

• It means that if Govt has a deficit, then it will ask RBI to print notes and give it to Govt. and in return Govt. will give its Bonds to RBI. (So it will be basically debt on Govt. but how Govt will show/manipulate its accounts that will be clear only when this is done)................(Actually the word 'monetize' has relation with currency/notes/cash)

"Deficit Financing":

• It generally means that Govt. is having deficit (as expenses are more than receipts) and it will arrange for its financing of the deficit. And this deficit can be financed from market borrowing or borrowing from abroad OR there can also be the case that Govt may ask RBI to finance its deficit by printing more money. (So, in deficit financing there can be various options to finance and one of the options could be from RBI by printing money)

Source: The Hindu

2) Pradhan Mantri Matsya Sampada Yojana (PMMSY)

• A scheme to bring about Blue Revolution through sustainable and responsible development of fisheries sector in India
• This scheme was first announced in Budget 2019-20 and then in Aatma Nirbhar Bharat. 
• Fisheries constitute 1.24% of National GDP and 7.28% of Agriculture GDP.

Salient Features (aims and objectives):

• It has been approved at a total estimated investment of Rs. 20,050 crores to be implemented over a period of 5 years from FY 2020-21 to FY 2024-25. The goal is to double the fish exports in the next 3 to 4 years i.e. by 2024-25.
• The scheme intends to address critical gaps in fish production and productivity, quality, technology, post-harvest infrastructure and management, modernisation and strengthening of value chain, traceability, establishing a robust fisheries management framework and fishers’ welfare.
• Harnessing of fisheries potential in a sustainable, responsible, inclusive and equitable manner and enhancing contribution to Agriculture GVA and exports 
• Social, physical and economic security for fishers and fish farmers 
• Robust fisheries management and regulatory framework
• The PMMSY is an umbrella scheme with two separate Components namely (a) Central Sector Scheme (CS) and (b) Centrally Sponsored Scheme (CSS). Basically central govt. is funding some percentage of the project cost (investments in plants and machinery) up to a certain limit. No need to go into details, there are various options.

e-GOPALA

• e-GOPALA app provides platform to farmers in the country for managing livestock including buying and selling of disease free germplasm in all forms (semen, embryos, etc); availability of quality breeding services (Artificial Insemination, veterinary first aid, vaccination, treatment etc) and guiding farmers for animal nutrition, treatment of animals using appropriate ayurvedic medicine/ethno veterinary medicine. There is a mechanism to send alert (on due date for vaccination, pregnancy diagnosis, calving etc) and inform farmers about various government schemes. It also enables cattle owners to buy and sell animals through this app.  Basically the app will give farmers the freedom from middlemen and provide all information related to productivity, health and diet for the cattle.

Mission Dolphin

• Govt. (Ministry of Environment) will launch ‘Project Dolphin’ on the lines of ‘Project Tiger’ and ‘Project Elephant’ (Prime Minister on 15th Aug had announced that Project Dolphin will be launched, the details are not clear yet). It will  give an impetus to the conservation efforts of the species by empowering various stakeholders, including the river-dependent population to take measures for its protection including sustainable fishing with scientific methods. Mission Dolphin will also have positive impact on fisheries sector.

Source: Mint

3) Gold ETFs (Gold - Exchange Traded Funds)

• While owning gold in physical forms like jewellery, gold coins or bars comes at a huge cost, but owning it in paper form like gold ETFs come at a price closer to the actual price of gold. The price difference between the two, i.e., physical and paper gold (gold ETF), is due to the making charges, storing costs, jeweller margin etc, which is not there in gold ETF.
• Therefore, if your objective is to bank/trust on the value/price of gold increasing in future, then investing via the ETF route is the answer. Similar to mutual funds where the value of one's investment is a reflection of the value of shares/bonds in which the mutual fund is investing, in gold ETF, your investment value will fluctuate/depend on the physical price of gold in the market. And there is an advantage in case of gold ETF is that you can buy/sell your investments easily as it is being traded on the stock exchange.
• The gold ETF being an exchange-traded fund can be bought and sold only on stock exchanges and thus saving you the trouble of keeping physical gold. While jewellery, coins and bars come with high initial buying and selling charges, the gold ETF costs much lower (brokerage margin is very low). The transparency in pricing is another advantage. The price at which it is bought is probably the closest to the actual price of gold in the market.

How gold ETFs work

• Physical gold supports Gold ETFs as security at the back-end. For instance, when you buy a Gold ETF, the person or entity at the back-end is purchasing gold. They give guarantee to the investors about the purity of gold too. The stock exchange allows an ‘Authorised Participant or Member’, generally large companies/firms to handle the purchase and sale of gold to generate ETFs. Constant trading and control by the ‘Authorised Members’ ensure that the cost of gold and ETFs remains the same.  

Taxation

• Gold ETFs are treated as non-equity investments and taxed accordingly. Short-term capital gains on units held for less than 36 months is added to investor's income and taxed as per the applicable slab rate. Long term capital gains on units held for more than 36 months is taxed at 20%.

when physical gold prices came down in August then a lot of investors purchased gold ETFs. And this is very logical as the gold ETFs investment goes into the physical buying of gold at the back end.

4) Ranking of States on Support to Startup Ecosystems: DPIIT

• The Results of the 2nd edition of Ranking of States on Support to Startup Ecosystems were released by the Department for Promotion of Industry and Internal Trade (Ministry of Commerce & Industry).
• DPIIT has recently released the Ease of Doing Business Rankings of the States-2019 based on the State Business Reform Action Plan.

Objectives

• The rankings were started with an objective of fostering competitiveness, mutual learning and propel States and Union Territories (UTs) to work proactively towards uplifting the startup ecosystem.

Framework

• The 2019 Ranking Framework has seven broad reform areas consisting of 30 action points ranging from institutional support, easing compliances, relaxation in public procurement norms, incubation support, seed funding support, venture funding support, and awareness and outreach.

Participation

• 22 States and 3 Union Territories.

2 Categories

• To establish uniformity and ensure standardization in the ranking process, States and UTs have been divided into two groups.
• Category Y: All UTs except Delhi and all States in North East India except Assam.
• Category X: All other States and UT of Delhi.

Results

• The States and UTs were classified as: Best Performers, Top Performers, Leaders, Aspiring Leaders and Emerging Startup Ecosystems.
• Gujarat was the Best performer in Category X followed by Karnata and Kerala. Uttar Pradesh and Tamil Nadu occupied the lowest positions.
• Andaman and Nicobar Islands was the Best performer in Category Y. Sikkim secured the bottom place.
• Gujarat had secured the Best Performer position previous year as well.

Startup Landscape in India

Government Initiatives:

• Start Up India Fund: Under the Startup India program, the Government created the 'Fund of Funds for Startups (FFS) with a corpus of INR 10,000 crore.
• Policy Reforms for Startups: These include requirement of distributable profits for three years for a company to be eligible to issue shares with differential voting rights.
• Start-up Cells: The Cell will work towards redressal of grievances & tax-related issues of Startups with respect to the administration of the Income-tax Act, 1961.
• National Startup Advisory Council: To advise the Centre on measures needed to build a strong ecosystem for nurturing innovation and start-ups in the country.
• Aatmanirbhar Bharat ARISE-Atal New India Challenge: It is a national initiative to promote research & innovation and increase competitiveness of Indian startups and Micro, Small and Medium Enterprises (MSMEs).
• AIM-iCREST: It is an Incubator Capabilities Enhancement program launched by NITI Aayog for a Robust Ecosystem focused on creating high performing Startups.
• More than 1300 Startups have been supported by seed funding from State Governments. In addition to seed funding, 10 States have created Venture Funds or a Fund of funds and 218 startups have been provided with venture funding support.
• Seed funding : It is the initial capital used when starting a business.
• Venture Funds: This generally comes after the seed funding round. It is a means of equity financing for rapidly-growing private companies for expansion or purchase of a company. It is provided by venture capitalists after carefully scrutinizing the projects.

Source: PIB

5) Virtual Courts

• Recently, the Parliamentary Standing Committee on Personnel, Public Grievances, Law and Justice has presented its report “Functioning of the Virtual Courts/Courts Proceedings through VideoConferencing”.
• This is the first report to be presented by any parliamentary panel on the impact of the pandemic.
• Pre-Covid-19 period, the video-conference (VC) set up was primarily used for conducting remand matters to prevent movement of prisoners between courts and jails.
• Such VC facilities have been operationalised between 3,240 court complexes and corresponding 1,272 prisons.
• In August 2019, the High Court of Punjab and Haryana launched its first virtual court at Faridabad to deal with traffic challan cases from across the state.
• The report suggests that a full-fledged virtual court should be piloted in the first instance and recommends the continuation of virtual courts in a post-Covid-19 scenario.
• It argued that transfer of certain categories of cases, like cases pertaining to traffic challans or other petty offences, from regular court establishments to virtual courts will reduce the pendency of cases.
• Currently, there are 30 million pending cases.

Advantages:

• Virtual/digital justice is cheaper and faster besides addressing locational and economic handicaps.
• Virtual courts are an improvement over traditional courts as they are more citizen-friendly and offer greater access to justice.
• The productivity of lawyers will increase substantially as there will be no regular visits to courts and long waiting hours. If this practice is extended to other civil cases, efficiency will double, even treble, in judicial functioning.

Challenges:

• Various stakeholders have noted that the present infrastructure does not support virtual court proceedings.
• 3,477 courtrooms are supported with facilities for virtual proceedings while 14,443 are still to be provided with them.
• Almost 50% of lawyers, particularly in district courts, do not have any laptop or computer facility so their participation in the virtual courts will be either very less or not at all.
• All judges are not able to undertake virtual hearings due to lack of experience and also due to lack of sufficient infrastructure to enable all of them to undertake virtual hearings.
• Virtual court hearings, especially during peak hours when many people log into the video-conferencing system, are subject to frequent crashes of the system and one glitch can spoil the entire proceeding.
• There are concerns that virtual courts will compromise the privacy of data as well as the confidentiality of discussions and court proceedings, due to the usage of third-party software applications, which are prone to hacking and manipulation.

Suggestions:

• Infrastructure needs to be updated with sufficient machinery and data connectivity to provide with the virtual proceeding.
• Virtual proceedings can be extended permanently to various Appellate Tribunals like Telecom Disputes Settlement and Appellate Tribunal, National Company Law Appellate Tribunal, etc. located across the country which do not require personal appearances of the parties/advocates.
• The Ministry of Law and Justice and Ministry of Electronics and Information Technology has been recommended to address data privacy and data security concerns while developing a new platform for India’s judicial system.

e-Courts Project

• It was conceptualized on the basis of the “National Policy and Action Plan for Implementation of Information and Communication Technology (ICT) in the Indian Judiciary-2005” submitted by e-Committee, Supreme Court of India with a vision to transform the Indian Judiciary by ICT enablement of Courts.
• The e-Courts Mission Mode Project, is a pan-India Project, monitored and funded by the Department of Justice, Ministry of Law and Justice, for the District Courts across the country.

6) Net Present Value of Forests

• The Ministry of Mines has requested the Forest Advisory Committee (Ministry of Environment, Forest and Climate Change) to exempt digging exploratory boreholes from Net Present Value (NPV).
• In 2018, the Ministry of Coal, the Ministry of Mines and the Ministry of Petroleum and Natural Gas had sought to be exempted from forest clearances for exploratory boreholes.

Exploratory Boreholes

• An exploratory borehole is drilled for the purpose of identifying the characteristics, location, quantity and quality of a resource (coal, metal or petroleum).
• It is a part of prospecting a site for future use for mining and extraction activities.

Net Present Value (NPV):

• It is a mandatory one-time payment that a user has to make for diverting forestland for non-forest use, under the Forest (Conservation) Act, 1980.
• Calculation: This is calculated on the basis of the services and ecological value of the forests.
• It depends on the location and nature of the forest and the type of industrial enterprise that will replace a particular parcel of forest.
• These payments go to the Compensatory Afforestation Fund (CAF) and are used for afforestation and reforestation.
• The CAF is managed by the Compensatory Afforestation Management and Planning Authority (CAMPA).
• Decided by: The Forest Advisory Committee constituted by the Ministry of Environment, Forest and Climate Change (MoEF&CC) decides on whether forests can be diverted for projects and the NPV to be charged.
• It is a statutory body constituted by the Forest (Conservation) Act 1980.
• Exemptions: Some projects have been provided exemption from paying NPV like construction of Schools, Hospitals, village tanks, laying down of optical fibre etc. Projects like underground mining and wind energy plants have been given a 50% exemption from NPV.
• Background: In the N. Godavarman Thirumulpad v. Union of India case, 2008, the Supreme Court mandated the payment of NPV.
• The Kanchan Gupta Committee developed the concept of NPV after this case.

Argument by Ministry of Mines

• All areas of exploration are not converted into mining. Only about 1% of cases are converted to mining.
• Payment of NPV at a present rate of 2% or 5% NPV of the total forest area in the lease area is one of the major challenges which leads to delay in the exploration/ prospecting activities.

Response from the Forest Advisory Committee

• While it was not possible to do away with NPV, it recommended that the MoEF&CC may consider charging NPV on a per borehole basis instead of the present practice of charging 2 or 5%.

Forest Conservation Act, 1980

• The Forest Conservation Act, 1980 stipulated that the central permission is necessary to practice sustainable agro-forestry in forest areas. Violation or lack of permit was treated as a criminal offence.
• It puts a restriction on the use of forest-land for non-forest purposes.
• It targeted to limit deforestation, conserve biodiversity and save wildlife.

Source: The Hindu

7) Climate Smart Cities Assessment Framework

The Ministry of Housing and Urban Affairs has launched the Climate Smart Cities Assessment Framework (CSCAF) 2.0, along with the ‘Streets for People Challenge’ under the Smart Cities Mission.

CSCAF 2.0:

• Objective: To provide a clear roadmap for cities towards combating Climate Change while planning and implementing their actions, including investments.
• CSCAF initiative intends to inculcate a climate-sensitive approach to urban planning and development in India.
• Framework: It has 28 indicators across five categories namely;
• Energy and Green Buildings,
• Urban Planning, Green Cover & Biodiversity,
• Mobility and Air Quality,
• Water Management and
• Waste Management.
• Implementing Agency: The Climate Centre for Cities under National Institute of Urban Affairs (NIUA) is supporting MoHUA in implementation of CSCAF.

Streets for People Challenge:

• ​Aim: It aims to inspire cities to create walking-friendly and vibrant streets.
• Eligibility: All cities with a population of over 5 lakh, and capital cities, can apply.
• It includes:
• Creating pedestrian-friendly streets in high footfall areas,
• Re-imagining under-flyover spaces,
• Re-vitalizing dead neighbourhood spaces, and
• Creating walking links through parks and institutional areas.

Supporting Partners:

• Fit India Mission, under Ministry of Youth Affairs and Sports,
• The India program of the Institute for Transport Development and Policy (ITDP).
• ITDP works around the world to design and implement high quality transport systems and policy solutions that make cities more livable, equitable, and sustainable. It was set up in 1985 and is headquartered in New York, USA
• The India Program works with cities to design and implement sustainable transport projects, and provide policy solutions to enhance social inclusion, reduce dependency on limited resources, improve road safety, and reduce carbon emissions.

Background

• Cities around the world, such as Bogota, Berlin, and Milan have responded by transforming streets for walking and cycling, to ensure safe mobility during Covid-19.
• The Smart Cities Mission is also associated with India 4 cycles challenge method, that aims to inspire Indian cities to implement quick cycling-friendly interventions in the wake of Covid-19 with the support of their citizens and assistance from experts.

Smart Cities Mission

• It is an innovative initiative under the Ministry of Housing and Urban Affairs, to drive economic growth and improve the quality of life of people by enabling local development and harnessing technology as a means to create smart outcomes for citizens.
• It was launched in the year 2015 as a Centrally Sponsored Scheme.
• Objective: To promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of Smart Solutions.
• Strategy:
• Pan-city initiative in which at least one Smart Solution is applied city-wide.
• Develop areas step-by-step with the help of these three models:
• Retrofitting.
• Redevelopment.
• Greenfield.

Source: PIB

8) Number of Giant Radio Galaxies

• Indian Researchers working on giant radio galaxies (GRG) at Inter-University Centre for Astronomy and Astrophysics (IUCAA) Pune, India and Leiden University, Netherlands, have found nearly 400 new GRGs.
• GRGs are large single structures in the universe.

Radio Galaxies:

• The universe has billions of galaxies and almost all have supermassive black holes at the centre.
• Some of these black holes are active and produce jets travelling almost at the speed of light.
• A black hole is a place in space where gravity pulls so much that even light can not get out. The gravity is so strong because matter has been squeezed into a tiny space. This can happen when a star is dying.
• These jets are visible in radio light or at radio wavelengths of the electromagnetic spectrum.
• Such galaxies, which have active black holes shooting high-speed jets, are called radio galaxies.
• A radio galaxy is a strong source of electromagnetic radiation or radio waves.
• They are extremely weak in radio luminosity making it difficult for even a sensitive radio telescope to detect them.

Giant Radio Galaxies

• When some of these radio galaxies grow to enormous sizes, bigger than 33 lakh light years across, they are called giant radio galaxies (GRGs).
• GRGs were discovered in 1974 and until 2016, only about 300 GRGs were known. The latest findings indicate that they are over 800.
• It is not clearly understood how some objects grow to such large scales and what is the fuel of their respective black holes.
• The length of jets indicates how powerful and active a black hole is as well as about the environment density of black holes.

Significance

• The study of GRGs gives important clues to unveiling how these massive black holes accrete mass and the efficiency with which they produce the magnificent jets.

Source: Indian Express

9) Paddy Stubble Use by PEDA

• The Punjab Energy Development Agency (PEDA) in association with the Govt. of Punjab, is creating alternatives for paddy stubble utilisation.
• This includes setting up biomass power plants and producing Bio CNG from the paddy stubble biomass.

Punjab Energy Development Agency

• It was formed in Sept. 1991 as a state nodal agency for promotion and development of renewable energy programmes/projects and energy conservation programme in the state of Punjab. PEDA is registered as a Society under the Societies Act of 1860.

Biomass Power Plants

• PEDA has set up 11 biomass power plants where 97.50 mega watts (MW) of power is generated.
• In these plants, 8.80 lakh metric tonnes of paddy stubble is used annually to generate power.
• Bio CNG: Eight projects of Bio CNG are under execution in the state. These will need around 3-lakh metric tonnes of paddy stubble annually.
• India’s largest Bio CNG project, which will produce 8,000 m cube biogas per day (equivalent to 33.23 tonnes of Bio CNG per day) is under execution at Lehragaga tehsil in Sangrur district. The project is expected to be commissioned by March 2021.
• Bioethanol Project: A Bioethanol project of 100 kilolitre is being set up at Talwandi Sabo in Bathinda. This will require 2 lakh metric tonnes of paddy stubble annually.
• Bioethanol can be used to run vehicles after blending with diesel and petrol.

Advantages of these Projects

• After commissioning of all these projects, Punjab will be able to utilise 1.5 million tonnes (7% of the total) paddy stubble.
• Farmers’ income: Farmers can benefit hugely if they can sell paddy stubble to the industry instead of burning it.
• Environment benefits: It will reduce the pollution caused by stubble burning and also preserve the fertility of the soil which is lost due to burning paddy stubble.
• Entrepreneurship: The youth, particularly engineers, graduates in science and technology can start such projects under the ‘start-up’ concept, which will create entrepreneurship among them.
• Employment: Educated unemployed youth in rural Punjab where such projects will be set up can get big job opportunities.

Limitations

• Current usage of stubble in these plants is very small compared to the generation of stubble. Punjab needs varieties of stubble-based industry where more and more stubble is consumed.

Issues involved with Paddy Stubble:

• Aboutl 20 million tonnes of paddy stubble or paddy crop residue is generated in Punjab annually. Less than 5% is being utilized in Bio-gas, Biomass power generation or other environment-friendly uses. The main mode of getting rid of this stubble is stubble burning.
• Stubble Burning is a major cause of concern because of environmental and health reasons.
• Stubble burning is considered to be one of the factors responsible for smog in Delhi.
• The burning of stubble reduces the soil fertility, besides polluting the environment.
• Additionally, the heat generated by stubble burning penetrates into the soil, leading to the loss of moisture and useful microbes.

Other alternatives to utilize paddy stubble:

• Torrefaction: Torrefaction is a thermal process to convert biomass into a coal-like material, which has better fuel characteristics than the original biomass.
• Fertilizer: The stubble can be used for preparation of the high-grade organic fertilizers by mixing with cow dung and few natural enzymes.
• Mechanized Management: Stubble can be managed in three ways — by pressing the left over stubble under the earth; sowing wheat directly in the standing stubble in the fields and thirdly, by collecting it in bundles. This can be aided by use of machines like:
• Super SMS (Straw Management System): It cuts and spreads the straw in uniform manner in the field at the time of harvesting of paddy.
• Happy Seeder: It can sow wheat directly in such fields in standing paddy stubble (the height of which remains around 18 inches after cutting with Super SMS).
• Super Seeder: It is more advanced and it ploughs standing paddy stubble in soil and sows wheat seed simultaneously in a single operation after harvesting.

Government Initiatives

• Promotion of Agricultural Mechanization for In-Situ Management of Crop Residue - It is a Central Sector Scheme that was launched by the Government of India to tackle air pollution and to subsidize machinery required for in-situ management of crop residue in the States of Punjab, Haryana, Uttar Pradesh and NCT of Delhi.
• SATAT Scheme: Sustainable Alternative Towards Affordable Transportation (SATAT) scheme was launched by the Minister of Petroleum and Natural Gas. Its objectives include reducing pollution from burning of agricultural / organic waste and utilising more than 62 million metric tonnes of waste generated every year in India.
• The Punjab government has provided 74,000 subsidised machines called Super SMS, Happy Seeder and Super Seeders to the farmers for stubble management after harvesting.

Source: Indian Express

10) Five Star Villages Scheme: India Post

• The Department of Posts (Ministry of Communications) has launched a scheme called Five Star Villages. The scheme seeks to bridge the gaps in public awareness and reach of postal products and services, especially in interior villages.
• Objective: To ensure universal coverage of flagship postal schemes in rural areas of the country.
• Features:
• Three components: Product and Service Availability, Product and Service Publicity and Product and Service Marketing.
• One-Stop Centre: Branch offices will function as one-stop shops to cater all post office related needs of the villagers.
• Schemes covered:
• Savings Bank accounts, Recurring Deposit Accounts, NSC/KVP certificates,
• Sukanya Samridhi Accounts/ PPF Accounts,
• Funded Post Office Savings Account linked India Post Payments Bank Accounts,
• Postal Life Insurance Policy/Rural Postal Life Insurance Policy and
• Pradhan Mantri Suraksha Bima Yojana Account/Pradhan Mantri Jeevan Jyoti Bima Yojana Account.
• Rating System: One Scheme is equal to one star of rating. Therefore, if a village attains universal coverage for four schemes from the above list, then that village gets four-star status and so on.
• A Pilot Implementation: The scheme is being launched on pilot basis in Maharashtra; based on the experience here, it will be implemented nation-wide.
• Implementation Strategy:
• It will be implemented by a team of five Gramin Dak Sevaks who will be assigned a village for marketing of all products, savings and insurance schemes of the Department of Posts.
• This team will be headed by the Branch Post Master of the concerned Branch Office. Mail overseers will keep a personal watch on the progress of the team on a daily basis.

Significance

• India Post has been serving the people in an extraordinary way in the difficult situation which has emerged due to Covid-19, by bringing them medicines and financial assistance.
• The Postal Department has been playing a major role in the implementation of Government schemes, leveraging the immense strength of its vast network.
• Postal schemes are known for providing highly secured deposits, they provide higher return of interest with low risk.
• The way to realize the goal of Aatmanirbhar Bharat is through collaborative efforts such as this, wherein various schemes have been brought together under one umbrella, with the goal of providing financial inclusion.

Source: PIB