Comprehensive Current affairs 1 October 2020

India paid tribute to Bhagat singh on his birth anniversary.

India paid homage to the revolutionary freedom fighter Bhagat Singh on his 113th birth anniversary .

It was on this day in 1907, Bhagat Singh was born in Banga village of Lyallpur district of undivided Punjab province.He fought against British rule for the country's independence and was hanged in Lahore jail at the age of 23, along with Rajguru and Sukhdev.

PM of India Modi paid tribute to Bhagat Singh and highlighted his contributions to India's freedom Modi described him the great freedom fighter as symbol of bravery and courage.

Modi said another beautiful aspect of Shaheed Bhagat Singh's life was that he very well understood the importance of teamwork, be it dedication towards Lala Lajpat Rai, or his attachment with Chandrashekhar Azad, Sukhdev and Rajguru and other freedom fighters.

Modi paid tributes to Bhagat Singh on his birth anniversary. In a tweet,he said, his saga of valor will continue to inspire the countrymen for ages.

 Indian Home Minister also paid tributes to freedom fighter Bhagat Singh on his birth anniversary. In a tweet, he also expressed his gratitude to Bhagat Singh who gave new direction to freedom struggle through his revolutionary ideas and supreme sacrifice and awakened resolve of independence among youth of the country.

Around 20000 manual scavengers missing government aid.

In India Out of 63,246 persons identified as manual scavengers between 2013 to March 31 this year, one time cash payment of Rs 40,000, as a rehabilitation measure stipulated under law, could be paid to only 43,407 as in case of the rest details like bank accounts and addresses provided by the states have been found to be incomplete.

▶These facts find space in the response of the Union ministry of social justice and empowerment (MSJE) in the report of the parliamentary standing committee which was tabled in Parliament in the recently concluded monsoon session.

▶Based on the information shared on other rehabilitation measures the committee also notes that a “small fraction” of just 9,563 manual scavengers or their dependents have so far opted for skill development training. The MSJE has said it plans to provide training to 15,000 beneficiaries during 2020-21.

Association of World Election Bodies:

ECI to host an international webinar on ‘Issues, Challenges and Protocols for Conducting Elections during COVID-19: Sharing Country Experiences’.

▶The webinar is on the occasion of the Election Commission completing one year of chairmanship of the Association of World Election Bodies (A-WEB).

▶Over 120 delegates from 45 countries across the world will participate in the Webinar.

Association of World Election Bodies (A-WEB):

▶It is the largest association of Election Management Bodies (EMBs) Worldwide.

 ▶At present A-WEB has 115 EMBs as Members & 16 Regional Associations/Organisations as Associate Members.

▶ ECI is closely associated with A-WEB. The name A-WEB was suggested by the ECI of India.

▶The organisation provides training programmes to election officials of member countries upon request and also offers support during the election cycle to boost election management capacity.

▶ The India A-WEB Centre is located in New Delhi.

▶ A-WEB was established in South Korea in 2013.

▶ The current chairman of the organisation is India’s Chief Election Commissioner Sunil Arora.

Dumping of pharma materials from China.

Indian Govt. has initiated a probe into alleged dumping of a pharma raw material, Ceftriaxone Sodium Sterile, from China. Nectar Life Sciences and Sterile India have filed an application before the Commerce Ministry's investigation arm Directorate General of Trade Remedies (DGTR) .

The domestic manufacturers sought a probe into matter. The applicants have contended that material injury is being caused to the domestic industry due to dumped imports from China. They requested imposition of anti-dumping duty on the import.

AIR correspondent reports, the directorate will determine the existence, degree and effect of alleged dumping in respect of the product from China. If DGTR finds that there is dumping of the product which is impacting domestic manufacturers, it will recommend the amount of anti-dumping duty.

While DGTR recommends the duty, the Finance Ministry imposes it. In international trade parlance, dumping happens when a country or a firm exports an item at a price lower than the price of that product in its domestic market.

Agreement to extend strategic cooperation.

Indian PM Modi and his Japanese counterpart SUGA Yoshihide have expressed mutual intention to further strengthen the Indo-Japan relationship based on principles of trust and shared values.

▶Both the leaders agreed that the bilateral Special Strategic and Global Partnership between the two countries have made great advances over the last few years. Interacting over a phone call Modi congratulated Mr.Yoshihide on his appointment as the Prime Minister of Japan and wished him success in achieving his goals.

▶The two leaders concurred that the partnership between the two countries is even more relevant in today’s times given the global challenges, including that of the COVID-19 pandemic.

▶They emphasized that the economic architecture of a free, open and inclusive Indo-Pacific region must be premised on resilient supply chains, and in this context, welcomed cooperation between India, Japan and other like-minded countries.

▶Appreciating the progress made in the economic partnership between the two countries, the two leaders welcomed the finalization of the text of the agreement pertaining to specialized skilled workers.

Modi extended an invitation to Prime Minister Suga to visit India for the Annual Bilateral Summit, after improvement of the situation caused by the global COVID-19 pandemic.

 RBI decides to extend borrowing facility to banks till March 2021.

Amid the ongoing economic woes created by the COVID-19 pandemic, the Reserve Bank has decided to extend by six months the enhanced borrowing facility provided to banks to meet the shortage of liquidity till March 31, 2021.

▶As a temporary measure, the RBI had increased the borrowing limit for scheduled banks under the marginal standing facility (MSF) scheme from 2% to 3% of their net demand and time liabilities (NDTL) with effect from March 27, 2020.

 ▶The facility, which was initially available up to June 30, 2020 was later extended up to September 30, 2020 in view of the disruptions caused by the pandemic.

▶With a view to providing comfort to banks on their liquidity requirements as also to enable to continue to meet LCR requirements, RBI decided to continue with the MSF relaxation for a further period of six months, i.e., up to March 31, 2021.

▶This dispensation, it added, provides increased access to funds to the extent of ₹1.49 lakh crore, and also qualifies as high-quality liquid assets (HQLA) for the liquidity coverage ratio (LCR).

▶Under the MSF, banks can borrow overnight at their discretion by dipping into the statutory liquidity ratio (SLR).

Prescription of time frame for liquidation of defaulter-members’ assets.

Markets regulator SEBI directed the exchanges and clearing corporations to initiate measures for liquidating assets of defaulter members within six months of declaring the entities concerned as defaulters.

The watchdog directed that required measures be taken before the appropriate court of law to liquidate moveable and immoveable assets not in possession of stock exchanges and clearing corporations.

The recovery of assets would help in meeting the obligations of clients, stock exchanges and clearing corporations, the Securities and Exchange Board of India (SEBI) said in a circular.

A recognised stock exchange acts as a first-level regulator in the securities market, insofar as trading on its platform by its members is concerned.

World Bank Loan to India.

The World Bank has recently clarified that the USD 1 billion loan that it has provided to India in May 2020 to deal with Covid-19 comes with a condition of Universal Eligibility in Procurements.

 ▶The World Bank would have the right to review the procurement documents, inspect all accounts, records and other files relating to the project. Compliance to these conditions has been made mandatory for the funding.

▶ The Indian Government has also asked all its production units and other major establishments to remove preferential references in tenders and ensure that contractors explicitly agreed to comply with the relevant provisions of the World Bank’s Guidelines.

▶This would mean that all Preferential Market access policies shall not be applicable on purchases made while implementing the national project.

▶The preferential market access policies include Public Procurement (Preference to Make in India) Order, Micro Small & Medium Enterprises (MSME) Policy, and certain benefits to start-ups. It will be a setback to the Make in India and Atmanirbhar initiative.

The Loan will be Funded and Operated in Two Phases:

▶The First Phase is an immediate allocation of USD 750 million for fiscal year 2020. It will be implemented countrywide through the Pradhan Mantri Garib Kalyan Yojana (PMGKY)

to benefit vulnerable groups, particularly migrants and informal workers.

▶The Second phase is a USD 250 million second tranche that will be made available for fiscal year 2021. It would deepen the social protection package, whereby additional cash and in-kind benefits based on local needs will be extended through state governments and portable social protection delivery systems.

About World Bank Group

▶There are 189 member countries; the World Bank Group is a unique global partnership which consists of five development institutions.

▶They are International Bank for Reconstruction and Development (IBRD), International Development Association (IDA), The International Finance Corporation (IFC), The Multilateral Guarantee Agency (MIGA) and The International Centre for the Settlement of Investment Disputes (ICSID)

▶ India is not a member of ICSID.

Scientists find evidence on virus feeding microorganisms.

Scientists have found the first compelling evidence that two groups of ecologically important marine microorganisms could be eating viruses -- catching their "prey" and engulfing them, an advance that may lead to a better understanding of the flow of organic matter in the oceans.

▶The scientists explained that the predominant model of the role of viruses in the marine ecosystem is that of the "viral shunt," where microbes infected with viruses lose a substantial fraction of their chemicals back to the pool of dissolved organic matter.

▶However, the current study noted that the viral shunt could be complemented by a link in the marine microbial food web which may constitute a "sink of viral particles in the ocean."

▶The tiny single-celled organisms were first discovered twenty years ago, and until now, their food sources were a puzzle, as their feeding apparatus is too small for bacteria, but ample for viruses, the researchers said.

▶In the current research, they found that every single one of the choanozoan and picozoan genomes were associated with viral sequences from bacteria-eating viruses called phages, but mostly without any bacterial DNA.

▶"Future research might consider whether protists that consume viruses accumulate DNA sequences from their viral prey within their own genomes, or consider how they might protect themselves from infection," Dr.Brown said.

 SAI approves support to Mirabhai Chanu.

Sports Authority of India’s Mission Olympic Cell (MOC) on Monday sanctioned ₹40 lakh for weightlifter MirabaiChanu’s two-month training in Kansas, USA.

▶The decision was taken during MOC’s virtual meeting, held to discuss financial proposals of over ₹1.5 crore in six sports — shooting, badminton, boxing, para sports, weightlifting and hockey which are part of the Target Olympic Podium Scheme (TOPS).

▶The committee also approved the proposal of shooters to procure ammunition so that they can train at their home ranges. Anjum Moudgil and Mairaj Ahmad Khan’s proposals for equipment and training were also cleared.

Focus on upsc mains:

Financial Crimes Enforcement Network (FinCEN).

Over 2100 Suspicious Activity Reports (SARs) were recently filed by banks with the United

States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).

▶It identify at least USD 2 trillion in transactions between 1999 and 2017 flagged as possible evidence of money laundering or other criminal activity by compliance officers of banks and financial institutions.

About FinCEN:

▶It was set up in 1990.

▶ It serves as the leading global regulator in the battle against money laundering.

▶ It collects and analyzes information about financial transactions in order to combat domestic and international money laundering, terrorist financing, and other Financial crimes.

About Suspicious Activity Report (SAR):

▶It is a document filed by banks and financial institutions to report suspicious activity to the USA FinCEN.

▶ These are meant to red flag, within 30 days of the transaction’s occurrence: criminal funds or any form of dirty money; insider trading; potential money laundering; terror financing; any transaction that raises suspicion.

▶These are used to detect crime but cannot be used as direct evidence to prove legal cases.

▶There are details of banking transactions that give a clear indication of round-tripping, money laundering or dealings with shell-like entities.

▶It shares SARs with law-enforcement authorities including FBI, US Immigration and Customs.

Advantages:

▶ The FinCEN Files highlight the dangers correspondent banking pose.

▶ The term correspondent bank refers to a financial institution that provides services to another one—usually in another country.

▶It acts as an intermediary or agent, facilitating wire transfers, conducting business transactions, accepting deposits, and gathering documents on behalf of another bank.

▶ Individuals and companies being probed by Indian agencies in different cases are part of the SAR flagged to FinCEN.

▶ Like, transactions of Indian entities named in scams such as the 2G scam, the Agusta Westland scandal, and etc. cases have all been listed with the FinCEN.

About Indian Scenario:

▶ The Financial Intelligence Unit-India (FIU-IND) performs the same functions as FinCEN in the USA.

▶ Under the Finance Ministry, this was set up in 2004 as the nodal agency for receiving,analyzing and disseminating information relating to suspect financial transactions.

▶ The agency is authorized to obtain are Cash transaction reports (CTRs), Suspicious transaction reports (STRs) and Cross border wire transfer reports

▶ These reports are obtained from private and public sector banks every month.

▶This happens under the Prevention of Money Laundering Act, 2002 (PMLA).

▶ It is mandatory for banks in India to furnish a monthly CTR to the FIU on:

▶ All transactions over Rs. 10 lakh or its equivalent in foreign currency or a series of integrally connected transactions that add up to more than Rs. 10 lakh or its equivalent in foreign currency.

▶The STRs and CTRs are analysed by FIU. Suspicious or doubtful transactions are shared with agencies like the Enforcement Directorate, the Central Bureau of Investigation and the Tax Authority for the purpose of launching probes to check possible instances of money laundering, tax evasion and terror financing.

▶FIU’s 2017-2018 annual report reveals that it had received a record number of 14 lakh STRs following demonetization which was three times the number of STRs filed in the Previous Year.

Way Ahead:

▶The clear Message for Agencies in India is that their cases of financial fraud and corruption are being flagged by the FinCEN.

▶There is a need to have Regular Information exchange between financial regulators to track and nullify the efforts for money Laundering.

▶It has in many cases of Indian Entities and Individuals Mentioned their Financial History of alleged Irregularities.