26 July 2023 : Daily Current Affairs
DAILY CURRENT AFFAIRS
26-July-2023
Daily Current Affairs For UPSC ,Daily Current affairs of The hIndu and Indian Express.
1. Full-reserve banking: where banks act solely as custodians of customers’ money.
Topic: GS3 – economy.
Full reserve banking:
- Full-reserve banking, also known as 100% reserve banking, mandates banks to hold all money received as demand deposits in their vaults at all times.
- Under this system, banks can only lend money received as time deposits, giving them time to collect repayments from borrowers and repay depositors.
- In the fractional-reserve banking system (current system), banks lend more money than the cash they have in their vaults, creating electronic money.
- Critics argue that full-reserve banking restricts bank lending and hinders economic growth, as it requires actual cash to back loans.
- Proponents of full-reserve banking believe it can prevent bank runs and artificial economic booms and busts, offering more stability and accountability.
Full reserve banking versus Fractional reserve banking:
Full reserve banking:
- In a full reserve banking system, banks are required to hold 100% of their customers’ deposits in reserve.
- Banks are not allowed to lend out money that they receive from customers in the form of demand deposits.
- They can only lend money received as time deposits, where customers agree to keep their money with the bank for a specified period.
- The primary role of banks is to act as custodians for customers’ deposits and charge a fee for this service.
- Full reserve banking aims to eliminate the risk of bank runs and ensure that all depositors’ funds are readily available.
Fractional reserve banking:
- In a fractional reserve banking system, banks are only required to keep a fraction of their customers’ deposits in reserve.
- They can lend out a significant portion of the deposits, creating new money in the form of loans.
- Fractional reserve banking allows banks to earn interest on loans and other investments, which contributes to their profitability.
- This system creates a money multiplier effect, where a single deposit can lead to multiple loans and increased money supply in the economy.
- However, fractional reserve banking also poses risks, as a sudden rush of depositors seeking to withdraw their funds could lead to a bank run if the bank doesn’t have enough cash on hand.
Model question: Discuss the differences between Full Reserve Banking and Fractional Reserve Banking. Analyze the advantages and disadvantages of each system and its impact on financial stability and economic growth.
2. Lok Sabha passes contentious Biological Diversity Bill amid din
Topic: GS2 – Indian polity.
Context:
- The Lok Sabha passed the Biological Diversity (Amendment) Bill, 2021, to amend the Biological Diversity Act, 2002.
More information about the news:
- The amendments were proposed to address issues in the 20-year-old Act and reduce the compliance burden on various stakeholders.
- The Bill seeks to exempt registered AYUSH medical practitioners and users of codified traditional knowledge from prior intimation to access biological resources for certain purposes.
- Environmental organizations argue that the amendments solely benefit AYUSH firms and may lead to “bio piracy.”
- The Bill decriminalizes certain offences under the Act and replaces them with monetary penalties.
Biological Diversity (Amendment) Bill, 2021:
The Biological Diversity (Amendment) Bill, 2021 is a bill that amends the Biological Diversity Act, 2002. The Act provides for the conservation of biodiversity and sharing of benefits from access to biodiversity and associated knowledge with local communities.
Here are some of the key provisions of the Amendment Bill:
- Exemption for codified traditional knowledge and AYUSH practitioners: The Bill exempts users of codified traditional knowledge and AYUSH practitioners from sharing benefits with local communities. This means that these entities will not have to obtain prior informed consent (PIC) or benefit-sharing agreements (BSAs) from local communities before accessing biological resources or associated knowledge.
- Removal of research and bio-survey activities from the purview of benefit sharing:The Bill removes research and bio-survey activities from the purview of benefit sharing. This means that entities conducting research or bio-surveys will not have to obtain PIC or BSAs from local communities.
- Decriminalization of offences under the Act: The Bill decriminalizes all offences under the Act. This means that violations of the Act will no longer be punishable by imprisonment. Instead, violators will be subject to monetary penalties.
- Empowerment of government officials to hold inquiries and determine penalties: The Bill empowers government officials to hold inquiries and determine penalties for violations of the Act. This means that government officials will have the power to investigate and punish violations of the Act, without the need for a court order.
3. Political parties feel RTI may reveal their internal decisions
Topic: GS2 – Indian polity.
Context:
- Chief Justice of India (CJI) D.Y. Chandrachud made oral observations regarding political parties’ concerns about accountability under the Right to Information (RTI) Act.
- The observations were made during a hearing of petitions seeking a declaration that national and regional political parties are “public authorities” under the RTI Act.
Arguments for bringing political parties under RTI:
- Ensures transparency and accountability of political parties in their functioning.
- Allows citizens to access information about party funding, expenditure, and decision-making processes.
- Helps in monitoring the use of public funds allocated to political parties.
- Provides citizens with insight into candidate selection processes and party policies.
- Fosters a culture of openness and public scrutiny in the functioning of political parties.
- Brings political parties on par with other public authorities in terms of transparency and disclosure of information.
Arguments against bringing political parties under RTI:
- May compromise the internal functioning and decision-making processes of political parties.
- Could expose sensitive information and discussions related to candidate selection, party strategies, and political alliances.
- May deter individuals from joining political parties due to fear of their private information being made public.
- Could lead to misuse of RTI for political purposes, causing unnecessary disruption and interference in party affairs.
- Parties may become more cautious and secretive, hindering their ability to function effectively.
- May increase the burden on political parties in terms of time and resources required to respond to RTI requests.
Model question: Examine the arguments for and against bringing political parties under the purview of the Right to Information (RTI) Act. Assess the potential implications of such a move on transparency, accountability, and internal functioning of political parties.
4. Jill Biden marks U.S. reentry into UNESCO with a Paris ceremony
Topic: GS2 – International organisations.
Context:
- S. first lady Jill Biden attended a flag-raising ceremony at UNESCO’s headquarters in Paris.
More about the news:
- The ceremony marked the official reentry of the United States into the U.N. agency after a controversial five-year hiatus.
- The Stars and Stripes flag was hoisted outside UNESCO’s headquarters with the Eiffel Tower in the background.
- Jill Biden emphasized the importance of American leadership in preserving cultural heritage and promoting education and science globally.
- The move to rejoin UNESCO reflects President Joe Biden’s commitment to restoring U.S. leadership on the world stage.
Significance of the news: important from prelims perspective.
5. Over 700 refugees yet to be repatriated to Myanmar
Topic: GS3 – border security.
Context:
- 718 Myanmar nationals, including 301 children, entered Manipur to escape ongoing violence in their country.
- Assam Rifles informed the Chandel district administration about the presence of these migrants and is currently keeping them under watch.
- India and Myanmar share a free-movement regime within 16 km on both sides of the border, but Manipur suspended this regime in 2020 due to the pandemic.
India and Myanmar Free-movement regime:
The India-Myanmar Free Movement Regime (FMR) is an agreement between India and Myanmar that allows for the free movement of people within 16 km on both sides of the border. The FMR was established to facilitate the movement of people living in the border regions for various purposes such as trade, cultural exchange, and family visits. Here are some key points about the FMR:
- The FMR permits Myanmar nationals to stay in the designated border areas of India for up to 72 hours without requiring a visa.
- Conversely, India allows its nationals to stay in the corresponding border areas of Myanmar for up to 24 hours without a visa.
- The FMR covers specific border regions in four Indian states: Arunachal Pradesh, Nagaland, Manipur, and Mizoram.
- The agreement aims to promote people-to-people contact and enhance bilateral ties between India and Myanmar.
- The FMR has historical and cultural significance, as several ethnic groups residing in the border regions have ancestral ties across the international boundary.
6. Multi-State Cooperative Bill passed by Lok Sabha.
Topic: GS2 – Indian polity.
Context:
- The Multi-State Cooperative Societies (Amendment) Bill, 2023, was passed by the Lok Sabha.
- The Bill aims to introduce regular elections in cooperatives.
- Cooperative Minister Amit Shah introduced the Bill and stated that an independent body, similar to the Election Commission, will be responsible for conducting elections in cooperatives.
The Multi-State Cooperative Societies (Amendment) Bill, 2023:
The Multi-State Cooperative Societies (Amendment) Bill, 2023 is a bill that amends the Multi-State Cooperative Societies Act, 1984. The Act provides for the formation, registration, and regulation of multi-state cooperative societies in India.
The Amendment Bill proposes to:
- Establish a Cooperative Election Authority: The Bill proposes to establish a Cooperative Election Authority to oversee the conduct of elections to multi-state cooperative societies. This is intended to ensure that elections are conducted in a fair and transparent manner.
- Introduce electoral reforms:The Bill introduces a number of electoral reforms,
- All multi-state cooperative societies must hold elections every three years.
- The term of office of office-bearers of multi-state cooperative societies will be limited to three terms.
- The number of co-opted members on the board of directors of multi-state cooperative societies will be limited to 10% of the total number of directors.
- Establish a Cooperative Rehabilitation, Reconstruction and Development Fund:The Bill proposes to establish a Cooperative Rehabilitation, Reconstruction and Development Fund to provide financial assistance to sick multi-state cooperative societies. This is intended to help these societies recover and become financially viable.
- Introduce concurrent audit:The Bill introduces concurrent audit for multi-state cooperative societies with an annual turnover or deposit of more than the amount as determined by the Central Government. This is intended to ensure that the financial accounts of these societies are audited regularly and that any irregularities are detected and addressed promptly.
For Enquiry
26 July 2023 : Daily Current Affairs
25 July 2023 : The Hindu Editorial Notes PDF
25 July 2023 : PIB
25 July 2023 : Daily Current Affairs
24 July 2023 : Daily Quiz
24 July 2023 : The Hindu Editorial Notes PDF
24 July 2023 : PIB
24 July 2023 : Daily Current Affairs
22 July 2023 : Daily Quiz
22 July 2023 : PIB
Daily Current Affairs 26 July 2023 : Daily Current Affairs DAILY CURRENT AFFAIRS
25-July-2023
Daily Current Affairs For UPSC ,Daily Current affairs of The hIndu…
The Hindu 25 July 2023 : The Hindu Editorial Notes PDF The Hindu Editorial
25-July-2023
Daily Current Affairs For UPSC ,The Hindu Editorial Summary
Facebook-f
Twitter
Youtube
1. An…
PIB 25 July 2023 : PIB PRESS INFORMATION BUREAU
25-July-2023
Daily Current Affairs For UPSC ,The PIB ( Press Information Bureau…
Daily Current Affairs 25 July 2023 : Daily Current Affairs DAILY CURRENT AFFAIRS
25-July-2023
Daily Current Affairs For UPSC ,Daily Current affairs of The hIndu…
Daily Quiz 24 July 2023 : Daily Quiz 1. Since the implementation of economic reforms in 1991, India has witnessed significant growth in various…
The Hindu 24 July 2023 : The Hindu Editorial Notes PDF The Hindu Editorial
24-July-2023
Daily Current Affairs For UPSC ,The Hindu Editorial Summary
Facebook-f
Twitter
Youtube
1. Dilemmas…
PIB 24 July 2023 : PIB PRESS INFORMATION BUREAU
24-July-2023
Daily Current Affairs For UPSC ,The PIB ( Press Information Bureau…
Daily Current Affairs 24 July 2023 : Daily Current Affairs DAILY CURRENT AFFAIRS
24-July-2023
Daily Current Affairs For UPSC ,Daily Current affairs of The hIndu…
Daily Quiz 22 July 2023 : Daily Quiz 22 july 2023 : Daily Quiz…
PIB 22 July 2023 : PIB PRESS INFORMATION BUREAU
22-July-2023
Daily Current Affairs For UPSC ,The PIB ( Press Information Bureau…
