Important topics and their relevance in UPSC CSE exam for February 1, 2024. If you missed the January 31, 2024 UPSC CSE exam key from the Indian Express, read it here

THE WORLD

EU to launch Red Sea naval mission

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora.

Key Points to Ponder:

• What’s the ongoing story-EU member states want to launch a Red Sea naval mission by mid-February to protect ships from attacks by Yemen’s Iran-backed Houthi militia and could decide its command structure on Wednesday, foreign policy chief Josep Borrell said.

• Red Sea Naval Mission-Know in brief

• Operation Prosperity Guardian and Red Sea Naval Mission-Compare and contrast

• Who are the Houthis?

• How are the Houthis linked to the Israel-Hamas conflict?

• Map Work-Red Sea

• Why is the Red Sea significant and why are ships being attacked there?

• Could the Red Sea attacks impact the global economy?

Other Important Articles Covering the same topic:

????Attacks on ships, costly rerouting and more: What is happening in Red Sea, as spillover of Gaza war

South Africa says 5 countries confirm joining BRICS grouping

Syllabus:

Preliminary Examination: Current events of national and international importance

Mains Examination: General Studies II: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Key Points to Ponder:

• What’s the ongoing story-Egypt, Ethiopia, Iran, Saudi Arabia and the United Arab Emirates have confirmed they are joining the BRICS bloc after being invited last year, South Africa’s Foreign Minister Naledi Pandor said on Wednesday.

• BRICS expansion-know in detail

• BRICS-Know in detail

• Evolution of BRICS-Know in Detail

• Evolution of BRICS from Russia-China (RC) to Russia-India-China (RIC) to Brazil- Russia-India-China (BRIC) to Brazil-Russia-India-China-South Africa (BRICS)

• What is the Fortaleza Declaration?

• Brazil, Russia, India, China and South Africa (BRICS) Economy-Key Features

• RIC (Russia-India-China) out of BRICS-Significance and Stature in World Politics?

• Why BRICS Matters?

• Is the BRICS alliance no longer relevant and effective?

• The geopolitics of BRICS looks quite different today-how?

• What were the key takeaways from the BRICS leaders’ summit in Johannesburg in 2023?

• Quick Recall-Leaders of the BRICS — Brazil, Russia, India, China and South Africa — decided to expand the grouping and admit six new members. Saudi Arabia, Iran, UAE, Egypt, Ethiopia and Argentina will become part of BRICS with effect from January 1, 2024.

• Map Work-Saudi Arabia, Iran, UAE, Egypt, Ethiopia and Argentina

• How the decision on the new members was agreed upon?

• What are the parameters utilised for the induction of new members into the BRICS Grouping?

• How this expansion will make BRICS stronger and more effective?

• What is the significance of the 15th BRICS summit?

• What are the potential benefits or advantages for India in this context?

• What BRICS expansion means for India?

• BRICS — largely portrayed as an anti-West platform?

Other Important Articles Covering the same topic:

????UNCHARTED WATERS

????BRICS gets six new members: Significance, what it means for India

????BRICS 2.0

Previous year UPSC Prelims Question Covering similar theme: ????Consider the following statements: (UPSC GS1, 2016) 1. New Development Bank has been set up by APEC. 2. The headquarters of New Development Bank is in Shanghai. Which of the statements given above is/are correct? (a) 1 only (b) 2 only (c) Both 1 and 2 (d) Neither 1 nor 2

FRONT PAGE

RBI curbs on Paytm: Can’t take deposits, offer other services after February 29

Syllabus:

Preliminary Examination: Current events of national and international importance.

Main Examination: General Studies III: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

Key Points to Ponder:

• What’s the ongoing story-THE RESERVE Bank of India (RBI) on Wednesday barred Paytm Payments Bank from accepting deposits or top-ups in any of its key products — customer accounts, prepaid instruments, wallets, FASTags and National Common Mobility Card (NCMC) among others — after February 29 in the wake of “persistent non-compliances and material supervisory concerns”.

• Why Reserve Bank of India (RBI) barred Paytm Payments Bank from accepting deposits or top-ups in any of its key products?

• What does the RBI direction say?

• How this decision could impact a large number of customers?

• Paytm and India’s fintech revolution-Connect the dots

• What has Paytm said in response to the RBI action?

• What led to the RBI’s action against Paytm?

• What other actions has RBI taken against Paytm earlier?

• For Your Information-Paytm Payments Bank has been barred from offering almost all of its key services — accepting deposits or top-ups in any customer account, prepaid instruments, wallets, FASTags, National Common Mobility Card (NCMC), etc., after February 29 in the wake of “persistent non-compliances and material supervisory concerns”. “No other banking services…like fund transfers (irrespective of name and nature of services like AEPS, IMPS, etc.), BBPOU and UPI facility should be provided by the bank after February 29, 2024,” the RBI has said. It has directed that the nodal accounts of the parent company One97 Communications and Paytm Payments Services should be terminated at the earliest, and not later than February 29.

The settlement of all pipeline transactions and nodal accounts — in respect of all transactions initiated on or before February 29 — should be completed by March 15, and no transactions shall be permitted thereafter, the central bank has said.

As per the RBI, withdrawal or utilisation of balances by customers from their Paytm accounts including savings bank accounts, current accounts, prepaid instruments, FASTags, NCMC, etc. are permitted without any restrictions, “up to their available balance”. The RBI statement, however, does not mention a number of other services like loans, mutual funds, bill payments, digital gold, and credit cards.

The central bank gave no reasons for its action. However, Paytm Payments Bank has been facing scrutiny from RBI since 2018. Sources said the RBI’s action could be due to concerns on KYC compliance and IT-related issues. The central bank is concerned about allowing any institution or banking entity to expose depositors’ money to such risks.

It is learnt that Paytm Payments Bank and its parent OCL also came under RBI scrutiny for purported lack of requisite information barriers within the group, and data access to China-based entities that were indirect shareholders in the payments bank through their stake in the parent company. The failure to address these concerns at multiple levels over an extended period led to the latest action by the RBI, it is learnt.

Antfin, an affiliate of the Chinese conglomerate Alibaba, is a shareholder in One97 Communications — as of December 31, 2023, Antfin held 9.89% stake in the company, stock exchange data show. Given the frosty relationship between India and China over the past few years, Chinese investments in Indian companies have attracted intense scrutiny by Indian regulators.

Other Important Articles Covering the same topic:

????RBI action against Paytm Payments Bank: probable causes, effects

UP gets its fourth ‘acting’ DGP; six more states, one UT have acting police chiefs

Syllabus:

Preliminary Examination: Current events of national and international importance.

Mains Examination: General Studies II: Important aspects of governance, transparency and accountability and Role of civil services in a democracy.

Key Points to Ponder:

• What’s the ongoing story-The Uttar Pradesh government Wednesday appointed Director General (Law and Order) Prashant Kumar as its acting Director General of Police (DGP). He replaces Vijay Kumar, who too was an acting DGP, and is, in fact, the fourth such in a row over the past 20 months.

• What is ‘acting’ DGP?

• Who selects state DGP?

• What is the minimum tenure of DGP?

• Why such action is in complete violation of the Supreme Court guidelines on DGP appointments in the Prakash Singh case?

• What role does the Supreme Court play in police reforms?

• What is the Supreme Court’s Prakash Singh judgment on police reforms?

• What Supreme Court said in the Prakash Singh judgment (2006)?

• Do You Know-Prakash Singh, who served as DGP of UP Police and Assam Police besides other postings, filed a PIL in the Supreme Court post retirement, in 1996, seeking police reforms. In a landmark judgment, the Supreme Court in September 2006 had directed all states and Union Territories to bring in police reforms. The ruling issued a series of measures that were to be undertaken by the governments to ensure the police could do their work without worrying about any political interference.

The seven main directives from the Supreme Court in the verdict were fixing the tenure and selection of the DGP to avoid situations where officers about to retire in a few months are given the post. In order to ensure no political interference, a minimum tenure was sought for the Inspector General of Police so that they are not transferred mid-term by politicians. The SC further directed postings of officers being done by Police Establishment Boards (PEB) comprising police officers and senior bureaucrats to insulate powers of postings and transfers from political leaders. Further, there was a recommendation of setting up State Police Complaints Authority (SPCA) to give a platform where common people aggrieved by police action could approach.

Apart from this, the SC directed separation of investigation and law and order functions to better improve policing, setting up of State Security Commissions (SSC) that would have members from civil society and forming a National Security Commission. Based on the judgment, the UPSC issued its own guidelines in 2009 on the appointment of police chiefs of states. According to these guidelines, states are supposed to draw up and send to the UPSC a list of eligible officers with at least 30 years of service behind them, along with these officers’ service record, performance appraisal, and vigilance clearance. These officers are to be of the rank of ADG or the rank of police chief (and one below) stipulated for that state.

The list is supposed to be given to UPSC six months before the incumbent DGP is to retire. An empanelment committee headed by the UPSC chairman, and with the union home secretary, state chief secretary, state DGP, and the chief of a central police organisation in it, is supposed to select a panel of three officers “based on merit”. For smaller states that may have only one cadre post of DGP, the committee is supposed to send two names.

• How did states respond to these directives?

Other Important Articles Covering the same topic:

????One nation, one police is a reform that is long overdue

EXPRESS NETWORK

Didn’t surrender denominational character, AMU tells apex court

Syllabus:

Preliminary Examination: Indian Polity and Governance-Constitution, Political System, Panchayati Raj, Public Policy, Rights Issues, etc.

Mains Examination: General Studies II: Government policies and interventions for development in various sectors and issues arising out of their design and implementation.

Key Points to Ponder:

• What’s the ongoing story- The Aligarh Muslim University (AMU) on Wednesday rejected the argument that it had surrendered its denominational character upon its founding in 1920. Senior Advocate Rajeev Dhavan appearing for the University told a 7-judge Constitution bench presided by Chief Justice of India D Y Chandrachud that “the AMU Act 1920 read as a whole along with the statement of objects and reasons and the preamble, clearly reflect on the denominational nature of AMU”.

• What exactly the AMU Act 1920 says?

• What is the 1981 amendment made by Parliament to the Aligarh Muslim University Act?

• What is the entire issue?

• When did the university’s minority character come under dispute?

• What exactly Supreme Court said?

• What is the ‘minority character’ of an educational institution?

• What is the effect of a statute on minority status?

• How does the administration of AMU impact its minority status?

• Should the 1981 amendment be considered in this case?

• When and how was AMU set up?

• Do You Know- AMU’s origins can be traced back to the Muhammadan Anglo-Oriental (MOA) College, established by Sir Syed Ahmad Khan in 1875 to help Muslims overcome educational backwardness and prepare for government services. MOA not only imparted Western education but also emphasised Islamic theology. Sir Syed also advocated for women’s education.

In 1920, the institution was conferred university status and all assets of MOA College were transferred to it. The long title to the AMU Act read: “An Act to incorporate a teaching and residential Muslim University at Aligarh.” The legal dispute over AMU’s minority status dates back to 1967 when the Supreme Court (in S. Azeez Basha and another versus Union of India), led by then Chief Justice of India KN Wanchoo, was reviewing changes made in 1951 and 1965 to the AMU Act of 1920. These amendments affected how the university was run. For instance, originally, the 1920 Act said that the Governor General of India would be the head of the University. But in 1951, they changed it to replace ‘Lord Rector’ with ‘Visitor,’ and this Visitor would be the President of India.

Further, a provision that said only Muslims could be part of the University Court was removed, allowing non-Muslims to join. Additionally, the amendments reduced the authority of the University Court and increased the powers of the Executive Council of AMU. As a result, the Court essentially became a body appointed by the ‘Visitor’. These alterations in the AMU’s structure faced a legal challenge in the Supreme Court. The petitioners argued primarily on the grounds that Muslims established AMU and, therefore, had the right to manage it. It was while considering the challenge to these amendments that the top court held on October 20, 1967, that AMU was neither established nor administered by the Muslim minority.

The highest court determined that in 1920, Muslims could have set up a university, but that would not have guaranteed that the degrees from that university would be officially recognised by the Indian government. Hence, the court emphasised, AMU was established through a central Act to ensure the government’s recognition of its degrees. So while the Act may have been passed as a result of the efforts of the Muslim minority, it does not imply that the University, under the 1920 Act, was established by the Muslim minority, the SC ruled.

Additionally, according to the 1920 Act, the SC stated, the university was not solely operated by Muslims. Instead, its administration was entrusted to the Lord Rector and other statutory bodies. Even the University Court, which had only Muslim members, was elected by an electorate which was not exclusively Muslim, the Supreme Court noted.

• Why does the dispute persist?

Other Important Articles Covering the same topic:

????The long-running legal dispute over the minority character of AMU

ECONOMY

Three full-time, one part-time members of 16th FC appointed

Syllabus:

Preliminary Examination: Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.

Mains Examination: General Studies II: Appointment to various Constitutional posts, powers, functions and responsibilities of various Constitutional Bodies.

Key Points to Ponder:

• What’s the ongoing story-After the appointment of Arvind Panagariya as Chairman of the 16th Finance Commission, the government has now announced the appointment of three full-time members and one part-time member of the Commission.

• What is the Finance Commission?

• What are the functions of the Finance Commission?

• Who appoints the Finance Commission and what are the qualifications for Members?

• Article 280 of the Constitution says what?

• How are the recommendations of Finance Commission implemented?

• What is the tenure of the Fifteenth Finance Commission?

• Sixteenth Finance Commission-What you know about this?

• Do You Know-The Sixteenth Finance Commission will cover the five-year period beginning 2026-27, the report for which is expected to be taken up by the government at the time of presentation of Budget 2026-27. The Finance Commission is constituted by the President under article 280 of the Constitution, mainly to give its recommendations on distribution of tax revenues between the Union and the States and amongst the states themselves. The Commission’s work involves redressing the vertical imbalances between the taxation powers and expenditure responsibilities of the Centre and the States respectively and equalisation of all public services across the states.

The 15th Finance Commission, chaired by NK Singh, had submitted two reports. The first report, consisting of recommendations for the financial year 2020-21, was tabled in Parliament in February 2020. The final report with recommendations for the 2021-26 period was tabled in Parliament on February 1, 2021. The share of states in the central taxes for the 2021-26 period was recommended to be 41 per cent same as that for 2020-21. This was less than the 42 per cent share recommended by the 14th Finance Commission for 2015-20 period, with the 1 per cent adjusted to factor in the new union territories of Jammu and Kashmir, and Ladakh.

• What are the changes in fiscal federalism in India subsequent to the implementation of the Goods and Services Tax (GST)?

• “The 122nd Constitutional Amendment of 2016 giving the Union and states concurrent powers of indirect taxation has been the most far-reaching change from a fiscal standpoint, since the setting up of the First Finance Commission in 1951”-Analyse the statement

• “The 16th Finance Commission (SFC), due to be constituted soon, must be mandated to re-examine the tax-sharing principles in light of the altered landscape of fiscal federalism in India”-why?

• What do you understand by both vertical and horizontal sharing?

• What changes should the 16th Finance Commission implement?

• For Your Information-Former Finance and Expenditure Secretary Ajay Narayan Jha, who was also the member of 15th Finance Commission, has been appointed as full-time member along with Annie George Mathew, former Special Secretary in Department of Expenditure and Niranjan Rajadhyaksha, Executive Director of Artha Global. Soumya Kanti Ghosh, Group Chief Economic Advisor of public sector lender State Bank of India (SBI), has been appointed as a part-time member in the Commission.

Among the members, Jha, a former 1982 batch IAS officer of the Manipur cadre, has served in several positions in the earlier Finance Commissions. Before being a member of the 15th Finance Commission, Jha also served as Member Secretary of 14th Finance Commission, which was headed by former RBI Governor YV Reddy. The Finance Commission mainly decides the tax sharing formula between the Centre and the states. The 16th Finance Commission is expected to submit its recommendations by October 31, 2025, covering an award period of five years beginning April 1, 2026.

In November, the Union Cabinet chaired by Prime Minister Narendra Modi had approved the Terms of Reference for the 16th Finance Commission. As per the terms of reference (ToR), “The Finance Commission shall make recommendations as to the following matters, namely: The distribution between the Union and the States of the net proceeds of taxes which are to be, or may be, divided between them under Chapter I, Part XII of the Constitution and the allocation between the States of the respective shares of such proceeds.”

It shall also make recommendations on the “principles which should govern the grants-in-aid of the revenues of the States out of the Consolidated Fund of India and the sums to be paid to the States by way of grants-in-aid of their revenues under article 275 of the Constitution for the purposes other than those specified in the provisos to clause (1) of that article,” according to a statement issued after the Union Cabinet meeting on November 29.

Following this, Finance Secretary TV Somanathan had said that the Terms of Reference for the 16th Finance Commission are short but “all-encompassing” and that the ToR had been prepared after consultation with states. He had clarified that the terms are not limited or preliminary, and though they are shorter than recent commissions, they offer greater leeway to stakeholders so that their inputs can be taken into account.

Other Important Articles Covering the same topic:

????16th Finance Commission’s terms are short, but all-encompassing: Somanathan

EXPLAINED

What to watch in Budget

Syllabus:

Preliminary Examination: Economic and Social Development

Main Examination: General Studies III: Government Budgeting

Key Points to Ponder:

• What’s the ongoing story-As scheduled, on Thursday, Finance Minister Nirmala Sitharaman will present the Union Budget for the forthcoming financial year (2024-25). However, since this is the interim Budget — a full-fledged one will be presented after the general elections by the new government in July — the Budget speech is likely to be an exercise in underscoring the achievements of the incumbent government not just over the past year but also over the past decade. Just as predictable is the likely response of the Opposition parties; they are likely to argue that Budgets by the BJP-led government have failed the country, especially its most vulnerable sections.

• How does one figure out who is correct and to what extent?

• Where does the money come from and where does it go?

• Nominal increase vs Real increase-Compare

• What is Fiscal Deficit and Revenue Deficit in the Budget?

Other Important Articles Covering the same topic:

????A to Z of Budget

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