4 November 2024 : Daily Current Affairs

1. Why is reserve bank bringing back its gold assets to   India?

 (Source: Indian Express; Section: Economy Page; Page: 11)

Topic: GS3 – Indian Economy

Context:

The RBI is repatriating gold to enhance its financial reserves and stability, reducing reliance on foreign assets.  This move aims to boost liquidity within the Indian economy, facilitating easier access to assets during financial challenges.

Analysis of News:   

Background

• The Reserve Bank of India (RBI) is repatriating gold assets as part of a strategy to strengthen reserves and enhance financial stability.
• This move indicates a shift in the central bank’s asset management approach, reducing reliance on foreign holdings.
• Repatriating gold aims to boost confidence in the domestic economy, especially during global economic uncertainty. Storing gold assets within India allows for easier access and management during financial crises.
• This strategy supports overall economic stability and resilience in challenging economic environments.

Domestic holding rises

• The Reserve Bank of India (RBI) has purchased 32.63 tonnes of gold in the first half of FY25 (April-September), raising its total gold reserves to 854.73 tonnes.
• This significant accumulation occurs amid rising inflation and geopolitical tensions in the Middle East, which have increased gold prices.
• As of the end of September, the RBI reported holding 855 tonnes of gold, with over half (510.5 tonnes) stored domestically.
• The development reflects a broader effort by the RBI and the Indian government to protect the nation’s gold reserves from potential risks abroad.
• Since September 2022, the RBI has repatriated 214 tonnesof gold to safeguard its holdings amid growing geopolitical uncertainties
• This strategy highlights the RBI’s focus on enhancing financial stability and ensuring the security of national assets.

The logistics of RBI moving gold from London

• Earlier this year, reports indicated that around 100 tonnes of gold had been transported from the UK, with another similar-sized shipment expected.
• These shipments represent the first large-scale repatriation of gold since the 1990s, when India sent part of its reserves abroad due to financial difficulties.
• Currently, India has 324 tonnes of gold stored in the vaults of the Bank of England and the Bank for International Settlements (BIS) in the UK.
• This bulk storage functions as a strategic reserve for the RBI, with over 20 tonnes allocated as gold deposits.
• A key advantage of storing gold in the Bank of England is access to the London bullion market, which provides unmatched liquidity.
• By maintaining gold in London, the RBI can easily engage in trading, swaps, and other financial transactions in this market.

Why RBI keeps some gold abroad

• Despite the benefits of domestic gold storage, there are practical reasons for the RBI to keep some gold in foreign vaults.
• Gold stored overseas allows for easy trading, swapping, or use as collateral, providing flexibility for central banks like the RBI.
• The RBI frequently purchases gold from international markets, making overseas storage advantageous for these transactions.
• Maintaining gold in foreign vaults enables the RBI to maneuver quickly in global markets, which is beneficial in an interconnected financial landscape.
• This strategic positioning helps the RBI respond effectively to market opportunities and financial needs as they arise.

Why RBI keeps some gold abroad?

Despite the benefits of domestic gold storage, there are practical reasons for the RBI to keep some gold in foreign vaults. Gold stored overseas allows for easy trading, swapping, or use as collateral, providing flexibility for central banks like the RBI. The RBI frequently purchases gold from international markets, making overseas storage advantageous for these transactions. Maintaining gold in foreign vaults enables the RBI to maneuver quickly in global markets, which is beneficial in an interconnected financial landscape. This strategic positioning helps the RBI respond effectively to market opportunities and financial needs as they arise.

2. Committee To Assess Goa’s Demands On Demarcation Of  Ecosensitive Areas

 (Source: Indian Express; Section: Express network Page; Page: 07)

Topic: GS3 –Environment

Context:

• The committee appointed by the Union Environment Ministry is set to visit Goa to review state submissions regarding eco-sensitive areas (ESA) in the Western Ghats. • The committee, led by Sanjay Kumar, will evaluate the state’s objections regarding the inclusion of certain villages in the ESA designation, which prohibits mining and similar activities in these areas. Top of Form Bottom of Form

Analysis of News:   

• Eco-sensitive Zones (ESZs) in Goa are established to protect the environment and biodiversity, particularly around national parks and wildlife sanctuaries.
• These zones act as buffers to prevent development and industrial activities that could harm sensitive ecological areas.
• The primary goal is to preserve habitats and maintain ecological balance in the region.
• An expert committee appointed by the Union Environment Ministry is scheduled to visit Goa to review the state’s submissions on eco-sensitive areas.
• The committee is chaired by Sanjay Kumar, the former director-general of forests, and will assess the validity of the state’s requests.
• The Goa state government is seeking the exclusion of approximately 21 villages from the designated eco-sensitive areas, all located in Sattari taluka, North Goa.
• The committee’s review will focus on whether these exclusion requests are justified based on environmental considerations.
• Last month, the Union Ministry of Environment and Forest & Climate Change reissued a draft notification that designates over 56,800 square kilometers of the Western Ghats as ecological sensitive areas.

Importance of Eco-Sensitive Zones?

Eco-Sensitive Zones are designated areas around national parks and wildlife sanctuaries that serve as protective buffers against harmful development and industrial activities. These zones play a crucial role in preserving habitats, maintaining ecological balance, and ensuring the sustainability of the region’s natural resources. In Goa, where tourism and development are rapidly expanding, the need to protect sensitive ecological regions has never been more critical. The primary objectives of ESZs include: Habitat Preservation: Safeguarding the natural habitats of various flora and fauna. Ecological Balance: Maintaining the delicate balance of ecosystems to ensure their health and longevity. Regulated Development: Allowing for controlled development that does not compromise the integrity of the environment.

 3. Mixed bag for SC Collegium as many judicial appointments are delayed

(Source – The Hindu, International Edition – Page No. – 1)

Topic: GS2 – Polity

Context

This news highlights various issue faced by the judiciary system particularly collegium system

 What is collegium system of Appointment in Judiciary?

The collegium system in India is a method used for the appointment and transfer of judges in the higher judiciary, specifically the Supreme Court and High Courts. Here’s a breakdown of how it works:

Composition

• Collegium: The collegium is typically composed of the Chief Justice of India and the four senior-most judges of the Supreme Court.
• High Court Collegium: For the High Courts, the collegium is made up of the Chief Justice of the respective High Court and its two senior-most judges.

Functions

• Appointments: The collegium is responsible for recommending the appointment of judges to the Supreme Court and High Courts. This includes both new appointments and promotions from the High Courts to the Supreme Court.
• Transfers: It also recommends the transfer of judges between different High Courts.

Issue in the Collegium System

The system has faced criticism for its lack of transparency, potential for nepotism, delays in appointments, and lack of diversity among judges.

• Transparency and Accountability: The collegium’s decision-making process is often criticized for its lack of transparency. There are concerns about how decisions are made and the criteria used for selecting judges.
• Delay in Appointments: The collegium system has been associated with significant delays in the appointment of judges. This has led to vacancies in various courts, exacerbating the backlog of cases.  For example,aA six-month delay on the part of the government to clear the collegium’s recommendation of Justice Bidyut Ranjan Sarangi as Jharkhand Chief Justice saw the judge get a tenure of merely 15 days.
• Nepotism and Favoritism: Critics argue that the collegium may favor certain candidates, leading to allegations of nepotism or lack of meritocracy in judicial appointments.
• Judicial Independence vs. Executive Influence: The balance between maintaining judicial independence and managing executive influence is a contentious issue. Some argue that the collegium system helps protect the judiciary from political pressure, while others believe it needs to be more accountable to the public.
• Lack of Diversity: There are concerns regarding the lack of diversity in judicial appointments, including gender, caste, and regional representation, which can affect public confidence in the judiciary. For example, in judicial appointments in its two years, it did not recommend even a single woman to the top court Bench.
• Conflict of Interest: The collegium members are themselves judges, which raises questions about potential conflicts of interest when evaluating candidates for appointment.
• Implementation of Recommendations: The executive’s delay or refusal to act on the collegium’s recommendations has also been a persistent issue, leading to tensions between the judiciary and the executive.

• Judicial Overreach: Some critics argue that the collegium’s extensive powers can lead to judicial overreach, where the judiciary might infringe upon the roles of other branches of government.

Practice Question:  Discuss the challenges faced by Indian judiciary due to the collegium system.

4. First science result from Aditya L1, ISRO’s sun mission, is out

(Source – The Hindu, International Edition – Page No. – 6)

Topic: GS3 – Science and Technology

Context

The Indian Space Research Organisation (ISRO) launched Aditya-L1 in September 2023. The first science result from the Aditya-L1 mission, India’s first scientific mission dedicated to studying the sun, is released. It predicted the coronal mass ejection. The findings, led by researchers R. Ramesh will be published in the Astrophysical Journal Letters.

What is coronal mass ejections (CMEs)

• CMEs are large-scale explosions of plasma and magnetic fields from the sun’s corona that can travel through space and impact the Earth and other bodies in the solar system.
• CMEs consist primarily of charged particles, including electrons, protons, and heavier ions, along with magnetic fields. They can eject billions of tons of material into space, often expanding over millions of kilometers.
• CMEs are often associated with solar flares, which are sudden eruptions of energy caused by the tangling, crossing, or reorganizing of magnetic field lines near sunspots.

Effect of the CMEs

• When a CME reaches Earth, it can interact with the planet’s magnetic field, leading to geomagnetic storms.
• These storms can disrupt satellite operations, affect GPS and communication systems, and even cause power outages on the ground.
• CMEs are also responsible for beautiful auroras, as charged particles collide with atoms in the Earth’s atmosphere, creating colorful displays.

Relevance of the Study

Scientists monitor CMEs using various space-based observatories, Aditya-L1 mission, to better understand their origins and impacts. Visible Emission Line Coronagraph (VELC) plays an important role in it.

Visible Emission Line Coronagraph (VELC)

The Visible Emission Line Coronagraph (VELC) is a scientific instrument designed to study the sun, particularly its corona and phenomena like coronal mass ejections (CMEs). VELC was developed by the IIAp in Bengaluru, India, as part of the Aditya-L1 mission, India’s first dedicated solar observation mission. By studying CMEs and solar dynamics, VELC contributes to our understanding of space weather phenomena that can affect satellite operations, communication systems, and power grids on Earth. The data collected by VELC is expected to enhance our knowledge of solar physics and improve predictive models for solar activity. Knowing the thermodynamic properties of CMEs near the sun through VELC is very important to understand their source regions on the sun. Observation of the CMEs as they originate on the sun and understanding their plasma characteristics is the goal of the VLEC

Practice Question: Analyze the significance of the Aditya-L1 mission of ISRO. (250 Words /15 marks)

Prelims Facts

1. First Asian Buddhist Summit in New Delhi

(Source – The Hindu, International Edition – Page No. – 6)

Context

The Government of India, in collaboration with the International Buddhist Confederation, is holding the first Asian Buddhist Summit in Delhi. The two-day summit will be inaugurated by President Droupadi Murmu

Aim: The summit will bring together Buddhist ‘Sangha’ leaders, scholars, experts and practitioners from various traditions across Asia to foster dialogue, promote understanding and address contemporary challenges faced by the Buddhist community.

The summit, themed “Role of Buddha Dhamma in Strengthening Asia,” aligns with India’s Act East Policy focused on collective and spiritual development across the region