1. RBI WITHDRAW 2000 NOTES FROM CIRCULATION

TAGS: GS 3: ECONOMY

THE CONTEXT: Reserve Bank of India (RBI) has decided to withdraw the Rs 2000 denomination banknotes from circulation, but existing notes will continue to be legal tender.

EXPLANATION:

• The Rs 2000 note was introduced in November 2016 under Section 24(1) of The RBI Act, 1934, primarily with the objective of meeting the currency requirement of the economy expeditiously after the legal tender status of Rs 500 and Rs 1000 notes was withdrawn.
• With the fulfilment of that objective, and once notes of other denominations were available in adequate quantities, the printing of Rs 2000 notes was stopped in 2018-19.
• This denomination is no longer commonly used for transactions besides, there is adequate stock of banknotes in other denominations to meet currency requirements.
• In pursuance of the ‘Clean Note Policy’ of the Reserve Bank of India, it has been decided to withdraw the Rs 2000 denomination banknotes from circulation.

Clean Note Policy:

• Clean Note Policy seeks to give the public good-quality currency notes and coins with better security features, while soiled notes are withdrawn out of circulation.
• The RBI had earlier decided to withdraw from circulation all banknotes issued prior to 2005 as they have fewer security features as compared to banknotes printed after 2005.
• However, the notes issued before 2005 continue to be legal tender. They have only been withdrawn from circulation in conformity with the standard international practice of not having notes of multiple series in circulation at the same time.

What is Legal tender?

• Legal tender refers to a form of currency that can be in the form of a coin or a banknote that is recognised by law as an acceptable means for settling debts or obligations.
• The Government of India issues coins under Section 6 of The Coinage Act, 2011, which are considered legal tender for making payments or settling accounts, provided that the coins are undamaged and meet the prescribed weight requirements.
• Similarly, banknotes issued by the Reserve Bank of India, such as Rs 2, Rs 5, Rs 10, Rs 20, Rs 50, Rs 100, Rs 200, Rs 500, and Rs 2000, are legal tender throughout India and can be used for making payments or settling accounts based on the amount stated on the banknote.
• These banknotes are guaranteed by the Central Government, as per the provisions outlined in sub-section (2) of Section 26 of the RBI Act, 1934. Additionally, Rs 1 notes issued by the Government of India are also recognized as legal tender.

Legal Tender status of Rs 2000:

• Rs 2000 banknote will continue to maintain its legal tender status.
• Members of the public can continue to use Rs 2000 banknotes for their transactions and also receive them in payment.

Reserve bank of India:

• The Reserve Bank of India was established in the year 1935 in accordance with the Reserve Bank of India Act, 1934. The Reserve Bank of India is the central Bank of India entrusted with the multidimensional role.
• It performs important monetary functions from issue of currency note to maintenance of monetary stability in the country.

Some Important Functions of Reserve bank of India:

1. Banker to Government: The Reserve Bank of India accepts and makes payment on behalf of Central Government. It carries out its exchange, remittance, management of public debt and other banking functions of the Central Government. The Central Government entrusts its money, remittance, exchange and banking transactions in India with the Reserve Bank of India. It deals in repo or reverse repo.
2. Right to Issue Bank note: The Reserve Bank of India has the sole right to issue bank notes in India. The banknotes are legal tender guaranteed by the Central Government. The issue of bank note is conducted by a separate department called issue department. The Central Government on the recommendation of Central Board specifies denomination of bank notes including discontinuance of bank notes. The Central Government approves design, form and material of Bank notes on consideration of recommendations of the Central Board.
3. Formulates Banking policy: The Reserve is empowered to formulate banking policy in the interest of the public or depositors banking policy in relation to advances and provide direction on the purpose of the advances, margins to be maintained in a secured advances, the maximum amount of advance may be made, the rate of interest, terms and conditions for advances or guarantees may be given.
4. Licensing Authority: The Reserve Bank of India is empowered to grant license to commence banking business in India, including the power to cancel a license granted to a banking company.
5. Banker’s Bank: The banks listed in second schedule and non schedule banks shall maintain a cash reserve ratio with the Reserve bank of India with a view to securing the monetary stability in the country. It provides loans and advances in foreign currency to scheduled Banks and to other financial institution. It purchases, sells or discount any bill of exchange or promissory note or makes a loan or advances to schedule bank.

2. RADIOMETRIC DATING

TAGS: GS 3: SCIENCE AND TECHNOLOGY

THE CONTEXT: New study shows a way to use calcium-41 the same way carbon-14 has been used in carbon-dating, but with several advantages.

EXPLANATION:

• Since its invention in 1947, carbon dating has revolutionised many fields of science by allowing scientists to estimate the age of an organic material based on how much carbon-14 it contains.
• However, carbon-14 has a half-life of 5,700 years, so the technique can’t determine the age of objects older than around 50,000 years.
• In 1979, scientists suggested using calcium-41, with a half-life of 99,400 years.
• It’s produced when cosmic rays from space smash into calcium atoms in the soil, and is found in the earth’s crust, opening the door to dating fossilised bones and rock.

What is Radiometric Dating?

• When an organic entity is alive, its body keeps absorbing and losing carbon-14 atoms. When it dies, this process stops and the extant carbon-14 starts to decay away.
• Using the difference between the relative abundance of these atoms in the body and the number that should’ve been there, researchers can estimate when the entity died.
• A significant early issue with carbon dating was to detect carbon-14 atoms, which occur once in around 10 to 12 carbon atoms. Calcium-41 is rarer, occurring once in around 10 to 15 calcium atoms.
• In a new study, Scientist pitched a technique called Atom-Trap Trace Analysis (ATTA) as a solution.
• ATTA is sensitive enough to spot these atoms; specific enough to not confuse them for other similar atoms; and fits on a tabletop.

How does Atom-Trap Trace Analysis (ATTA) work?

• A sample is vaporised in an oven and the atoms in the vapour are laser-cooled and loaded into a cage made of light and magnetic fields.
• As it is known that atom, an electron in one orbital can transition to the next if it’s given a specific amount of energy; then it jumps back by releasing that energy.
• In ATTA, a laser’s frequency is tuned such that it imparts the same energy as required for an electron transition in calcium-41. The electrons absorb and release this energy, revealing the presence of their atoms.
• ATTA’s success is due to innovations with lasers as laser power is a lot higher, and laser frequency control is better.
• ATTA also avoids potassium-41 atoms, which are similar to calcium-41 atoms but lack the same electron transition.
• It can also be modified to study isotopes of some noble gases that have defied techniques developed for carbon-14, such as argon-39, krypton-81, and krypton-85.

What are the applications of ATTA + calcium-41?

• The successful application of ATTA to a calcium isotope now opens the possibility of extension to other metal isotopes.
• It can be used in an earth-science application. In warmer climate, glaciers retreat and allow rock below to accumulate calcium-41. In colder climate, glaciers advance and block the calcium-41 from reaching the rock. Here, ATTA can be used to study how long some rock has been covered by ice.

3. ROW OVER POWER OF THE DELHI LIEUTENANT GOVERNOR UNDER ARTICLE 239AA

TAGS: GS 2: GOVERNANCE

THE CONTEXT: The Centre promulgated an ordinance extending powers to the Delhi Lieutenant Governor over services in the administration of the national capital, which essentially involves the power to transfer and appoint bureaucrats posted to Delhi. Also, Central government moved the Supreme Court filing a review petition against the Court’s judgment that gave control over the subject of administrative services to the Delhi government.

EXPLANATION:

• Central government promulgated an ordinance to create a National Capital Civil Service Authority, empowered to recommend transfers, postings and disciplinary actions relating to all Group A and DANICS officers (Delhi, Andaman & Nicobar, Lakshadweep, Daman and Diu and Dadra and Nagar Haveli civil services).
• The Ordinance is aimed at nullifying the effect of the Constitution Bench’s verdict, which gave the Delhi government power over administrative services in the capital.

Article 239AA of the Constitution:

• It was inserted into the Constitution by the 69th Amendment Act, 1991.
• It conferred special status on Delhi following the recommendations of the S Balakrishnan Committee that was set up in 1987 to look into Delhi’s demands for statehood.
• According to this provision, the NCT of Delhi will have an administrator and a Legislative Assembly.
• Legislative Assembly, “shall have the power to make laws for the whole or any part of the NCT with respect to any of the matters in the State List or Concurrent List in so far as any such matter is applicable to Union territories,” except on the subjects of police, public order, and land.

Supreme Court about Article 239AA:

• SC interpreted Article 239AA, the provision that deals with the governance structure of Delhi, that underlines principles of federalism, participatory democracy, and collective responsibility.
• Two Constitution Benches of the Supreme Court, in July 2018 and May 2023, have dealt with the issue of the powers of the Delhi government. Both of these judgments involve the interpretation of Article 239AA of the Constitution, which deals with the governance structure of the national capital.
• In the majority ruling in 2018, the Constitution bench held that although Delhi could not be accorded the status of a state, the concept of federalism would still apply to it.
• The 2018 ruling said that with the introduction of Article 239AA in the Constitution, Parliament envisaged a “representative form of Government” for Delhi while seeking to provide a directly elected Legislative Assembly with legislative powers over matters within the State List and the Concurrent List. It also sought to mandate the Lieutenant Governor to act on the aid and advice of the Council of Ministers, except when he decides to refer the matter to the President for a final decision.
• The dispute over whether the Lieutenant Governor or the Chief Minister would have powers over these administrative services in Delhi went to the Supreme Court and a judgment was delivered recently.
• The ruling on May 5 places three constitutional principles – representative democracy, federalism and accountability – to an elected government within the interpretation of Article 239AA.
• The Bench in 2023 held that NCTD (Delhi), just like other states, represents the representative form of government”. However, it outlined that “the involvement of the Union of India in the administration of NCTD is limited by constitutional provisions, and any further expansion would be contrary to the constitutional scheme of governance.

Review petition:

• Constitution, under Article 137, gives the Supreme Court the power to review any of its judgments or orders.
• The court has the power to review its rulings to correct a “patent error” and not “minor mistakes of inconsequential import”.
• It is not necessary that only parties to a case can seek a review of the judgment on it. As per the Civil Procedure Code and the Supreme Court Rules, any person aggrieved by a ruling can seek a review.
• As per 1996 rules framed by the Supreme Court, a review petition must be filed within 30 days of the date of judgment or order.

In a 2013 ruling, the Supreme Court itself laid down three grounds for seeking a review of a verdict it has delivered:

1. The discovery of new and important matter or evidence which, after the exercise of due diligence, was not within the knowledge of the petitioner or could not be produced by him
2. Mistake or error apparent on the face of the record
3. Any other sufficient reason. In subsequent rulings, the court specified that “any sufficient reason” means a reason that is comparable to the other two grounds.

4. STARS PROGRAM

TAGS: PRELIMS PERSPECTIVE

THE CONTEXT: Ministry of Education and World Bank organized a one of its kind workshop on School-to-Work Transition under the STARS Program.

EXPLANATION:

Strengthening Teaching-Learning and Results for States (STARS) Project

• It was approved in October 2020 and it became effective on 23rd February 2021 for a period of five years i.e. up to FY 2024-25.
• It builds on the partnership between India and the World Bank for strengthening public school education and to support the country’s goal of providing ‘Education for All’.
• STARS project would be implemented as a new Centrally Sponsored Scheme under Department of School Education and Literacy, Ministry of Education.
• The STARS Project is being implemented in six identified States viz. Himachal Pradesh, Maharashtra, Odisha, Rajasthan, Madhya Pradesh and Kerala.
• The STARS Program is carved out of Samagra Shiksha, with a focus on those elements of the scheme that will most directly support school education enhancement.

Aims:

• It seeks to support the states in developing, implementing, evaluating and improving interventions with direct linkages to improved education outcomes and school to work transition strategies for improved labour market outcomes.
• The overall focus and components of the STARS project are aligned with the objectives of National Education Policy (NEP) 2020 of Quality Based Learning Outcomes.
• The Project envisions improving the overall monitoring and measurement activities in the Indian School Education System through interventions in selected states.
• The project shifts focus from the provision of inputs and maintaining of outputs to actual outcomes by linking the receipt and disbursement of funds to these outcomes.
• The STARS project also aims to focus on initiatives of PM e-Vidya, Foundational Literacy and Numeracy Mission and National Curricular and Pedagogical Framework for Early Childhood Care and Education as part of the Atmanirbhar Bharat Abhiyan.

The STARS Project has two major components:

At the national level, the project envisages the following interventions which will benefit all states and UTs:

• To strengthen MOE’s national data systems to capture robust and authentic data on retention, transition and completion rates of students.
• To support MOE in improving states PGI scores by incentivizing states governance reform agenda through SIG (State Incentive Grants).
• To support the strengthening of learning assessment systems.
• To support MOE’s efforts to establish a National Assessment Center (PARAKH). Among the tasks of such a center would be to leverage the experiences of states selected for the operation by collecting, curating and sharing these experiences with other states through online portals (e.g. Shagun and DIKSHA), social and other media engagement, technical workshops, state visits and conferences.

At the State level, the project envisages:

• Strengthening Early Childhood Education and Foundational Learning
• Improving Learning Assessment Systems
• Strengthening classroom instruction and remediation through teacher development and school leadership
• Governance and Decentralized Management for Improved Service Delivery.
• Strengthening Vocational education in schools through mainstreaming, career guidance and counselling, internships and coverage of out of school children

Some of the measurable outcomes of the project:

• Increase in students achieving minimum proficiency in grade 3 language in selected states
• Improvement in secondary school completion rate
• Improvement in governance index scores
• Strengthened learning assessment systems
• Partnerships developed to facilitate cross-learning between states
• Strengthened school management by training of Head Teachers and Principals for improved education service delivery.

Samagra Shiksha

• It is a Centrally Sponsored Scheme launched in 2018 under Ministry of Education.
• It is an overarching programme for the school education sector extending from pre-school to class 12 has been, therefore, prepared with the broader goal of improving school effectiveness measured in terms of equal opportunities for schooling and equitable learning outcomes.
• It subsumes the three erstwhile Schemes of Sarva Shiksha Abhiyan (SSA), Rashtriya Madhyamik Shiksha Abhiyan (RMSA) and Teacher Education (TE).
• The major objectives of the Scheme:

1. provision of quality education and enhancing learning outcomes of students
2. Bridging Social and Gender Gaps in School Education
3. Ensuring equity and inclusion at all levels of school education; Ensuring minimum standards in schooling provisions
4. Promoting Vocationalisation of education; Support States in implementation of Right of Children to Free and Compulsory Education (RTE) Act, 2009
5. Strengthening and up-gradation of SCERTs/State Institutes of Education and DIET as a nodal agencies for teacher training.

5. ELECTION AND AIRWAVES

TAGS: GS 2: ELECTIONS

THE CONTEXT: In the recently-concluded Karnataka Assembly elections, political parties were provided free airtime on public broadcasters, All India Radio (Akashvani) and Doordarshan during elections.

EXPLANATION:

• The allotment was available to six recognised national parties Bharatiya Janata Party (BJP), the Indian National Congress (INC), the Bahujan Samaj Party (BSP), the National People’s Party (NPP), the Aam Aadmi Party (AAP) and the Communist Party of India (Marxist) and one recognised State party, the Janata Dal (Secular).
• The parties were allocated a base time of 45 minutes and additional slots based on performance in previous polls.

What is the rationale of the scheme?

• It is available to both national and recognised State parties.
• The facility to provide free airtime for political parties during elections was given statutory basis through the 2003 amendment to the Representation of People Act, 1951.
• The Supreme Court, in its famed judgment (The Secretary, Ministry of Information and Broadcasting vs Cricket Association of Bengal and ANR, 1995), held that airwaves are public property, and its use should serve the greater public good.

Working of the scheme:

• Time vouchers are distributed by a lottery system by the Election Commission in a transparent process to obviate any preferential treatment in getting primetime slots.
• The transcripts of political parties are vetted to ensure that they adhere to relevant codes.
• These codes proscribe any content which are inter alia critical of other countries, attack religions or other communities or incites violence and personal attacks.
• In case of any disagreements over the content of the script as vetted by the public broadcaster, it is referred to an Apex Committee comprising members from Akashvani and DD whose decision is final.
• The guidelines by the Election Commission of India (ECI) also require that a maximum of two panel discussions are also aired by Akashvani and DD.

Background:

• Since 1998, national and state parties have been getting a minimum of 45 minutes’ airtime each on DD and AIR channels that cover the area where elections are due, and additional time according to their performance in the preceding poll.
• This is spread out in a maximum of 15-minute slots per session and continues for the period between the last day of filing nominations and the end of the campaign. This is paid for by the public exchequer. The time given to parties was doubled before the Assembly polls last year to promote virtual campaigning.
• The regulations on party broadcasts on public frequencies disallow

1. a) Criticism of other countries
2. b) Attack on religions or communities
3. c) Anything obscene or defamatory
4. d) Incitement of violence
5. e) Anything amounting to contempt of court
6. f) Aspersion against the integrity of the President and Judiciary
7. g) Anything affecting the unity, sovereignty and integrity of the Nation
8. h) Any criticism by name of any person.

Comparison around the World:

• Elections being the lifeblood of a democracy, the misuse or abuse of airwaves to gain unfair electoral advantage is a key regulatory apprehension of governments around the world.
• In the U.S., the Federal Communications Commission, which regulates the electronic media in the country, devised the fairness doctrine to keep electioneering on the airwaves equitable. The now defunct fairness doctrine placed a positive obligation on broadcasters who carry political content of one candidate on its programme to extend the same to another candidate in the electoral fray.
• In the U.K., political parties are allocated designated slots by Parliament, called the party political broadcasts (PPBs) to convey important political information to the people. The British Communication watchdog, Ofcom, is responsible for ensuring that PPBs are included in every licensed public service television channel and commercial radio services.

1. SUPREME COURT RULING ON JALLIKATTU

TAGS: PRELIMS PERSPECTIVE
THE CONTEXT: A five-judge Bench of the Supreme Court upheld the amendments made by the legislatures of Tamil Nadu, Maharashtra, and Karnataka to The Prevention of Cruelty to Animals (PCA) Act, 1960, allowing bull-taming sports like jallikattu, kambala, and bullock-cart races.
EXPLANATION:

Background:

2014 ruling of Supreme Court:

• Animal Welfare Board of India, which is a statutory body under the Centre, and animal rights groups like People for the Ethical Treatment of Animals (PETA), provided documentary evidence to the court suggesting that the jallikattu animals were physically and mentally tortured.
• In 2014 SC ruling has then held that “bovine sports” were contrary to the provisions of Sections 3, 11(1)(a) and (m) of the Prevention of Cruelty to Animals Act, 1960 which relate to the “duties of persons having charge of animals” and define animal cruelty respectively.

Notification by Ministry of Environment, Forest and Climate Change:

• On January 7, 2016, a notification was issued by the Ministry of Environment, Forest and Climate Change prohibiting the “exhibition or training of bulls as performing animals”.
• However, an exception was carved in the notification, which specified that bulls might still be trained as performing animals at events such as Jallikattu in Tamil Nadu, according to the customs and culture of different communities.
• It was also specified that this exception is subject to conditions such as reducing the pain and suffering of bulls utilised in such sports.

Amendment by States:

• Tamil Nadu, Maharashtra, and Karnataka had in 2017 passed amendments to the central law against cruelty to animals in order to allow traditional sports such as the taming of bulls during Pongal.
• Following this, a SC Bench comprising then Chief Justice of India (CJI) Dipak Misra and Justice Rohinton Nariman opined that the jallikattu issue involved substantial questions of interpretation of the Constitution, and referred the matter to the Constitution Bench.
• The Bench was tasked with deciding whether Tamil Nadu could preserve jallikattu as its cultural right under Article 29(1) of the Constitution, which states that “any section of the citizens residing in the territory of India or any part thereof having a distinct language, script or culture of its own shall have the right to conserve the same”.

Recent judgement:

• Five-judge Bench overruled the view taken by a two-judge Bench of the court in its 2014 ruling in ‘Welfare Board of India v. A. Nagaraja’, banning such sports including jallikattu.
• Bench led by Justice KM Joseph ruled that the amendments, made in 2017 were “valid legislations”, it said that the jallikattu issue was “debatable”, and must ultimately be decided by the House of the People (Lok Sabha).
• Adding that the 2017 amendment “minimises cruelty to animals in the concerned sports”, the court held that once it’s implemented and read with the rules, the sports will not come under the definition of cruelty defined in the 1960 Act.
• Jallikattu” as bovine sports have to be isolated from the manner in which they were earlier practised and organising the sports itself would be permissible, in terms of the Tamil Nadu Rules.
• The court also said that the 2017 amendment does not violate Articles 51-A (g) and 51-A (h), which impose duties on Indian citizens to protect the environment and develop a scientific temper, humanism, spirit of inquiry, and reform, respectively. Further, it also held that the amendment didn’t violate Articles 14 (Right to Equality) and 21 (Right to Life) of the Constitution.

What is Jallikattu?

• Jallikattu, also known as eruthazhuvuthal, is a bull-taming sport traditionally played in Tamil Nadu as part of the Pongal harvest festival.
• The festival is a celebration of nature, and thanksgiving for a bountiful harvest, of which cattle-worship is part.
• However, the practice of jallikattu has long been contested, with animal rights groups and the courts expressing concern over cruelty to animals and the bloody and dangerous nature of the sport that sometimes causes death and injuries to both the bulls and human participants.

Stand of Other states

• Karnataka cabinet in January 2017 decided to amend the PCA Act, 1960, to pave the way for kambala, a sport involving a pair of buffaloes tied to the plough and anchored by one person. The buffaloes are made to run in parallel muddy tracks in a competition in which the fastest team wins.
• Maharashtra passed an amendment to the PCA Act, 1960, allowing “bullock cart races” involving bulls to conduct a race, “whether tied to cart with the help of wooden yoke or not (by whatever name called), with or without a cartman with a view to follow tradition and culture on such days”.

Animal Welfare Board of India

• Animal Welfare Board of India is a statutory advisory body on Animal Welfare Laws and promotes animal welfare in the country.
• It is established in 1962 under Section 4 of the Prevention of Cruelty to Animals Act, 1960.
• The Board consists of 28 Members including 6 Members of Parliament (2 Members of Parliament from Rajya Sabha and 4 Members of Parliament from Lok Sabha).The term of office of Members is for a period of 3 years.

Prevention of Cruelty to Animals (PCA) Act, 1960

• The Prevention of Cruelty to Animal Act, 1960 is one of the most comprehensive laws on the subject of animal welfare in India. It is an Act of the Parliament passed on 26 December 1960 with a vision to prevent cruelties on animals.

The main objective of the Act is:

• The Act prevents unnecessary pain or suffering on animals.
• The Act enshrines provisions for establishing the Animal Welfare Board of India, its powers, functions, constitution, and term of the office of members of the Board.
• The Act enshrines the guidelines regarding the experimentation on animals for scientific purposes and empowers a committee to make rules with regards to such experiments.
• The Act restricts the exhibition and training of performing animals. Both the terms ‘exhibit’ and ‘train’ are separately defined under Section 21 of the Act.

2. OPEN NETWORK FOR DIGITAL COMMERCE (ONDC)

TAGS: GS 3: ECONOMY; GS 3: SCIENCE AND TECHNOLOGY
THE CONTEXT: After the revolution brought in the realm of digital payments by the Unified Payments Interface (UPI), the Open Network for Digital Commerce (ONDC) is set to break new ground in the country’s digital commerce ecosystem.
EXPLANATION:

What is ONDC, and how does it work?

• ONDC is an interoperable network based on the BeckN protocol that anyone can piggyback on. It seeks to break down silos in digital commerce by enabling platforms of varying configurations (big or small) to connect and operate seamlessly on it.
• It comprises different entities called ‘Network Participants’, including Buyer Applications, Seller Applications, and Gateways that perform the search and discovery function.

Features of ONDC:

• It employs cutting-edge digital infrastructure, seeking to democratise digital commerce in India and make it more accessible and inclusive.
• ONDC with its network-centric approach and inclusive governance framework, will transform the digital commerce landscape in India and serve as an important reference point for a forward-looking Digital Public Infrastructure (DPI) governance framework.
• By moving the exchange of goods and services from a platform-centric approach to a network-centric approach, ONDC eliminates the need for buyers and sellers to use the same application, and promotes the discoverability of local digital stores across industries.
• From the buyer’s perspective, ONDC offers greater freedom of choice, reducing the overwhelming reliance on a single platform.
• Sellers also stand to benefit greatly: the network-centric approach of ONDC reduces the skewed bargaining power in favour of the platforms, which often results in higher entry barriers and lower margins for selle
• ONDC’s network-centric approach levels the playing field by making goods and services equitably accessible to all and benefiting all participants in the ecosystem.

ONDC’s inclusive governance approach:

• ONDC entity, a not-for-profit company incorporated under Section 8 of the Companies Act 2013, manages and operates the ONDC Network.
• It is responsible for building and maintaining the underlying infrastructure (common registries and protocols) as well as defining the rules of engagement and code of conduct for the Network Participants through the ONDC Network Policy and the ONDC Network Participant Agreement.
• Moving a step forward from previous Digital Public Infrastructure (DPI) governance models such as those of Aadhar and UPI, ONDC takes a more representative and multistakeholder approach to the governance that prioritises the evolving needs of its users.

How will the system be funded?

• The ONDC entity was initially promoted by the Quality Council of India and has since raised from multiple investors including private and public sector banks, depositories, development banks, and other financial institutions.
• While initial funding was obtained through share allotments, the ONDC entity aims to develop a self-sustaining financial model in the future.
• One potential revenue stream could include charging a small fee from platforms to fund ongoing and expansion-related activities independently.

Involvement of Government in ONDC:

• ONDC has been endorsed by the Department for Promotion of Industry and Internal Trade (DPIIT) under the Union Ministry of Commerce and Industry. DPIIT is not involved in ONDC’s funding, but is at the forefront of its evangelisation through light-touch governmental oversight.
• To ensure a market+community driven approach to decision-making, the board includes representatives from banks, the government, and independent industry and civil society members.
• It will establish a User Council, comprising representatives from Network Participants and civil society. The User Council will provide regular guidance on various aspects of the network’s functioning and governance, serving as a liaison between Network Participants, Consumers, and the network.

3. THE ISSUE OF DOTTED LAND

TAGS: GS 3: ECONOMY
THE CONTEXT: The Andhra Pradesh government has started removing “dotted lands” in the state from the prohibited list, restoring full rights of selling or pledging these lands to the farmers who own them. Over 2 lakh acres of these British-era dotted lands have been identified for permanent denotification.
EXPLANATION:

What kind of lands are dotted lands?

• Dotted lands are disputed lands for which there are no clear ownership documents.
• Typically, one or more individuals as well as the government’s Revenue Department lay claim over the land.
• These lands were also noted as disputed lands in the resettlement register or land records register. The dots on the land documents indicated their disputed status.

Background:

• These lands came to be known as “dotted lands’’ because when, during the British era, land ownership surveys and resettlement of land records were taken up, local revenue officials who were tasked with identifying government-owned and privately-owned lands put dots in the ownership column if more than one person claimed ownership, or if ownership could not be clearly established.
• In urban areas, dotted lands have been illegally sold and houses have been constructed, which cannot be taxed. With lakhs of acres under dispute, the government also loses on stamp duty revenue.

How did these ownership disputes arise?

• If landowners did not leave clear wills passing on land to their heirs or children, and if a dispute arose because more than one heir lay claim over the land.
• Some of the land records in question are more than 100 years old, and had been locked up in the prohibited list in and registers.
• During subsequent surveys, government officials left the ownership column blank indicating their disputed status as per Section 22A of the Registration Act.

How will this step benefit landowners/farmers?

• Government introduced a Bill in march, 2023 to amend the Revenue Act to grant titles to farmers who have been cultivating dotted lands for more than 12 years.
• The dots, and entries in land registers, will be removed and these farmers will be given clear land ownership documents.
• As financial institutions do not recognise dotted land documents as clear ownership documents. Those farmers who were using the land, they could not procure loans from banks and financial institutions by putting up the land as collateral.
• With the lands now being taken off the prohibited list, landowners/farmers will get full rights over the lands, and enjoy all usual rights as land owners.
• They can apply for financial assistance for crop support, purchase seeds and fertilisers, and procure farm equipment. The landowners/farmers can also sell the lands or gift to kin or relatives.

4. RBI REGULATION OF GREEN DEPOSITS

TAGS: GS 3: ECONOMY
THE CONTEXT: Reserve Bank of India (RBI) came up with a regulatory framework for banks to accept green deposits from customers. Under the new framework, banks that accept green deposits will have to disclose more information on how they invest these deposits.
EXPLANATION:

What are green deposits?

• Green deposits are not very different from the regular deposits that banks accept from their customers. The only major difference is that banks promise to earmark the money that they receive as green deposits towards environment-friendly projects.
• Deposit raised under this banner should be deployed towards projects earmarked for green financing. Green financing is lending to or investing in projects which contribute towards climate risk mitigation, climate adaptation and resilience, and other climate-related or environmental objectives including biodiversity management and nature-based solutions.
• For example, a bank may promise that green deposits will be used towards financing renewable energy projects that fight climate change.
• This apart, all the rules applicable to normal deposits will be applicable to green deposits.
• A green deposit is just one product in a wide array of other financial products such as green bonds that help investors put money into environmentally sustainable projects.

RBI’s regulatory framework:

• The RBI’s framework for the acceptance of green deposits lays down certain conditions that banks must fulfill to accept green deposits from customers.
• Firstly, banks will have to come up with a set of rules or policies approved by their respective Boards that need to be followed while investing green deposits from customers.
• These rules need to be made public on the banks’ websites and banks will have to disclose regular information about the amount of green deposits received, how these deposits were allocated towards various green projects, and the impact of such investments on the environment.
• A third-party will have to verify the claims made by banks regarding the projects in which the banks invest their green deposits as well as the sustainability credentials of these business projects.
• The registered entities shall issue green deposits as cumulative or non-cumulative deposits.
• On maturity, the green deposits would be renewed or withdrawn at the option of the depositor. The green deposits shall be denominated in Indian Rupees only. The tenor, size, interest rate and other terms and conditions are defined in the Master Direction of the Reserve Bank.

Eligiblity norms:

• The framework is applicable to Scheduled Commercial Banks including Small Finance Banks excluding Regional Rural Banks, Local Area Banks and Payments Banks and all deposit-taking Non-Banking Financial Companies (NBFCs), including Housing Finance Companies.
• The RBI has come up with a list of sectors that can be classified as sustainable and thus eligible to receive green deposits.
• These include renewable energy, clean transportation including electric vehicles, climate change adaption, sustainable water and waste management, pollution control terrestrial and aquatic biodiversity conservation, energy efficiency, and afforestation and so on.
• Banks will be barred from investing green deposits in business projects involving fossil fuels, nuclear power, tobacco, etc.

Aims:

• It aims to satisfy depositors who care about the environment by investing their money in environmentally sustainable investment products.
• It is aimed at preventing greenwashing, which refers to making misleading claims about the positive environmental impact of an activity.
• The idea is to foster and develop a green finance ecosystem in the country.
• The framework is intended to “encourage regulated entities (REs) to offer green deposits to customers, protect interest of the depositors, aid customers to achieve their sustainability agenda, and help augment the flow of credit to green activities/projects.

5. LIBERALISED REMITTANCE SCHEME (LRS)

TAGS: GS 3: ECONOMY
THE CONTEXT: The government sought to clarify its decision to bring overseas credit card spends under the Liberalised Remittance Scheme (LRS) for forex outgo.
EXPLANATION:

Issue:

• Earlier debit card spends were covered under the LRS, but international credit card were not under purview and data collected from top money remitters under the scheme revealed that international credit cards were being issued with limits in excess of the norm.
• Finance Ministry announced that international credit card payments will come under the RBI’s liberalised remittance scheme, or LRS. This means any remittance over $2.5 lakh or its equivalent in a foreign currency will need the Reserve Bank of India’s (RBI) approval.
• Ministry assured that the scheme will not cover bona fide business visits overseas by employees and said the imposition of 20% tax collection on source or TCS for foreign remittances will primarily impact tour travel packages, gifts to non-residents and domestic high net-worth individuals investing in assets such as real estate, bonds, stocks outside India.
• The main impact will only be on investment in assets such as real estate, bonds and stocks outside India by high net worth people using their credit cards; tour and travel packages, and expensive gifts to non-residents.

The Liberalised Remittance Scheme (LRS):

• It is part of the Foreign Exchange Management Act (FEMA) 1999 which lays down the guidelines for outward remittance from India.
• The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.
• Under LRS, all resident individuals, including minors, are allowed to freely remit up to USD250,000 per financial year (April – March). In case of remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian.
• This can be for any permissible current or capital account transaction, or a combination of both.
• Authorised dealers, such as banks, enable such transactions between residents and their overseas dependents, using only your PAN card for verification.
• Besides remittances, LRS can also offer foreign exchange services to Indian citizens for medical expenses or travelling.
• However, corporates, partnership firms, Hindu Undivided Family and charitable trusts are not eligible to use the LRS.

Prohibited items under the Scheme:

• Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
• Remittance from India for margins or margin calls to overseas exchanges / overseas counterparty.
• Remittances for purchase of FCCBs issued by Indian companies in the overseas secondary market.
• Remittance for trading in foreign exchange abroad.
• Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non- cooperative countries and territories”, from time to time.
• Remittances directly or indirectly to those individuals and entities identified as posing significant risk of committing acts of terrorism as advised separately by the Reserve Bank to the banks.
• Gifting by a resident to another resident, in foreign currency, for the credit of the latter’s foreign currency account held abroad under LRS.

Individuals can avail of foreign exchange facility for the following purposes within the LRS limit of USD 2,50,000 on financial year basis:

• Private visits to any country (except Nepal and Bhutan)
• Gift or donation
• Going abroad for employment
• Emigration
• Maintenance of close relatives abroad
• Travel for business, or attending a conference or specialised training or for meeting expenses for meeting medical expenses, or check-up abroad, or for accompanying as attendant to a patient going abroad for medical treatment/ check-up
• Expenses in connection with medical treatment abroad
• Studies abroad
• Any other current account transaction which is not covered under the definition of current account in FEMA 1999.