UPSC Daily CURRENT AFFAIRS – 02 July 2024

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UPSC CURRENT AFFAIRS – 02 July 2024

GS Paper 1:

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In flogging of couple in West Bengal, a warning sign for Mamata Banerjee

GS 1: Social Issues

 

Why is it in the news?

• The assault on a couple in a kangaroo court by a Trinamool Congress functionary in West Bengal highlights the rise of strongarm justice and the erosion of constitutional mechanisms in the state, reflecting a parallel system that operates with impunity.
• This incident, reminiscent of other cases like “love jihad” persecution and selective punishment using bulldozers, underscores violations of due process and the state’s failure to protect citizen rights.

What is “Love Jihad”? ·        Love Jihad, also known as Romeo Jihad, is an alleged practice where young Muslim men are accused of targeting young non-Muslim girls for conversion to Islam under the pretense of love. ·        Legal Status: The term “Love Jihad” has no legal recognition or sanction.

 

More about the news

• Despite BJP’s criticism of such “JCB justice” (Islam is known as JCB), Chief Minister Mamata Banerjee and her government must address these issues and avoid deflecting responsibility.
• The recent incident involving Tajimul Islam, who was arrested after the video emerged, signals a larger crisis within the party-state nexus that undermines the rule of law.
• Banerjee’s reliance on women’s support is evident through various financial assistance schemes like Rupashree, Lakshmir Bhandar, and Kanyashree, coupled with outreach initiatives to improve women’s welfare and representation.
• However, mere condemnations from party leaders are insufficient; Banerjee must ensure that the law prevails, irrespective of the accused individuals’ affiliations. The incident in Uttar Dinajpur also sheds light on the systemic issues in West Bengal, marked by the entanglement of government, political parties, and businesses that often disregard legal norms.

Conclusion

• Banerjee’s legacy and the future of her government hinge on upholding the rule of law and holding accountable those within the TMC who undermine it, learning from the fate of her predecessors.

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UPSC CURRENT AFFAIRS – 02 July 2024

GS Paper 2:

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New criminal laws to prioritize justice instead of punishment: Amit Shah

GS 2: Polity and Governance- Criminal Laws

 

Why is it in the news?

• Union Home Minister Amit Shah stated that the implementation of the three new criminal laws may take around three to four years for the entire process and technical aspects to become fully operational.
• Once the process is complete, individuals can expect to receive justice, even from the Supreme Court, within three years of filing an FIR. Shah highlighted the shift in focus of the new laws towards prioritizing justice over punitive measures.

More about the news

• These laws have been translated into various languages listed in the Eighth Schedule of the Constitution, including Tamil, with court proceedings also taking place in these languages.

·        The Eighth Schedule of the Indian Constitution lists the official languages of India, governed by Part XVII from Articles 343 to 351. Ø  Article 344: Requires the President to constitute a Commission after five years of the Constitution’s commencement. Ø  Article 351: Encourages the development of Hindi to serve as a medium for India’s composite culture. ·        The Eighth Schedule of the Constitution includes the following 22 languages : ·        Initially, 14 languages were included in the Constitution, with Sindhi added in 1967, Konkani, Manipuri, and Nepali added in 1992, and Bodo, Dogri, Maithili, and Santhali included in 2003, effective from 2004. ·        Inclusion Criteria: No fixed criteria exist for a language to be included in the Eighth Schedule despite its constitutional significance.

 

·        Addressing the concerns raised by Tamil Nadu Chief Minister M.K. Stalin regarding the laws, Shah urged dialogue and discouraged boycotting laws as a means of opposition. ·        In response to objections raised by Mr. Stalin about the laws’ names violating Article 348, Shah clarified that the total duration of police custody remains at 15 days, dispelling misconceptions about any extension to 60 days.

 

• The Home Minister assured that the Bharatiya Nyaya Sanhita (BNS) maintains a maximum 15-day police custody period similar to the previous laws and clarified the absence of a section on penal provisions for sexual crimes against men and transgender individuals, expressing intent to discuss this matter with the Supreme Court.
• Shah emphasized a secure data storage system and accountability for video recordings as stipulated under the Bharatiya Nagrik Suraksha Sanhita (BNSS), which mandates audio-video recording of search and seizure in criminal cases.
• Shah stressed that the new criminal laws were developed after extensive discussions with stakeholders over four years, aimed at addressing outdated provisions and enhancing relevance in contemporary times.
• The Minister highlighted the abolition of sedition laws from the British era and the introduction of new sections concerning anti-national activities to safeguard India’s unity and integrity.

New Acts and Their Replacements: Key Points Bharatiya Nyaya Sanhita 2023 ·        Replaces: Indian Penal Code, 1860 ·        Key Points: Ø  Community service is prescribed for minor offenses, such as attempting suicide or obstructing public servants. Ø  Sexual acts involving women under 18 are classified as rape, regardless of consent. Ø  Terrorist acts are defined as a separate offense.   Bharatiya Nagarik Suraksha Sanhita 2023 ·        Replaces: Criminal Procedure Code, 1973 ·        Key Points: Ø  Undertrials detained for half the maximum sentence must be released on bond, except in cases of death penalty, life imprisonment, or multiple pending charges. Ø  Magistrates of the first class can order accused persons to provide specimen signatures, finger impressions, handwriting, or voice samples.   Bharatiya Sakshya Adhiniyam 2023 ·        Replaces: Indian Evidence Act, 1872 ·        Key Points: Ø  Electronic and digital records are granted the same legal status as paper documents. Ø  Oral evidence includes all statements, including electronic ones, permitted or required by the court from witnesses regarding matters under inquiry.   Key Highlights of the New Criminal Laws ·        Objective: The new laws aim to replace colonial-era punishments with a justice-focused approach, integrating technological advancements in police investigations and court procedures. ·        New Offences: Ø  Introduction of new offences, including terrorism, mob lynching, and organized crime. Ø  Enhanced punishments for crimes against women and children. Measures for a Seamless Transition: ·        State Amendments: Ø  States are allowed to amend certain provisions of the Bharatiya Nagrik Suraksha Sanhita (BNSS). Ø  The Bharatiya Nyaya Sanhita (BNS) is expected to be amended soon to include sections on sexual crimes against men and transgender persons. ·        Interim Measures: Until the amendments are made, police officers are instructed to use other related sections under the BNS, such as wrongful confinement and physical hurt, for complaints about sexual crimes against men and transgender persons. ·        Concurrent Operation: The Indian Penal Code (IPC) and Criminal Procedure Code (CrPC) will run concurrently with the new laws due to pending cases and crimes committed before July 1, 2024, that are reported later. ·        Online FIRs: Ø  First Information Reports (FIRs) can now be filed online through the Crime and Criminal Tracking Network Systems (CCTNS). Ø  E-FIRs and zero FIRs are available in multiple languages without the need to visit a police station. ·        Training and Support: Training and hand-holding initiatives have been conducted for all states to help them adapt to the new system. ·        Technological Integration: Ø  The Home Ministry is testing eSakshya, a mobile app for police to record and upload crime scene evidence. Ø  Various states have developed their own systems based on their capabilities, such as the Delhi Police’s e-pramaan application.

 

·        For further information refer article on 29/06/2024 – New criminal codes from July 1: A threat to citizen liberty, justice under the guise of a decolonisation project

 

Govt. undecided on deadline to fix boundaries for Census

GS 2: Polity and Governance- Census

 

Why is it in the news?

• The deadline for finalizing administrative boundaries of districts, tehsils, towns, municipal bodies, and other regions for the Census has passed without a new date being announced.
• This uncertainty directly impacts the scheduling of the Census, last conducted in The deadline has been extended nine times since December 2020.

What is the Census? ·        A population census is the comprehensive process of gathering, compiling, analyzing, and disseminating demographic, economic, and social data for all individuals in a country or a specific region at a particular point in time. ·        It serves as a basis for reviewing the country’s progress, monitoring government schemes, planning for the future, and provides a snapshot of the community along with trends in population characteristics. ·        Legal Framework: The Census of India is conducted under the Census Act, 1948, a Union subject listed under Article 246 of the Constitution. ·        Frequency of the Census: The census is conducted every 10 years (Decadal Exercise) in India. Ø  The decennial Census is conducted by the Office of the Registrar General and Census Commissioner under the Ministry of Home Affairs, which was originally set up on an ad-hoc basis until 1951. ·        Historical Background Census Frequency in Different Countries: Censuses are conducted every 10 years in countries such as the United States and Britain, every 5 years in countries like Canada and Japan, and at irregular intervals in some other countries. Ø  First Indian City Census: Henry Walter conducted the first complete census of an Indian city in 1830 in Dacca, earning him the title “father of the Indian Census.” Ø  Non-Synchronous Beginnings: The first non-synchronous census in India occurred in 1872 under Governor-General Lord Mayo. Ø  Synchronous Census Initiated: The first synchronous census took place in 1881 under W.C. Plowden, the Census Commissioner of India.

 

More about the news

• A former Census official mentioned that a retrospective extension order may be issued later. If not, it could mean that the Census might be conducted in the next three to six months.
• The order issued on December 30, 2023, extending the freeze on administrative boundaries until June 30, 2024, effectively postpones the decennial Census to at least October 1, considering the typical three-month preparation time required for enumerators.
• Further, the enforcement of the women’s reservation Act, which reserves 33% of seats in Parliament and Assemblies for women, hinges on the Census.
• As per the Nari Shakti Vandan Adhiniyam, the reservation of one-third of seats in the Lok Sabha and Assemblies for women will be implemented following a delimitation exercise based on the latest Census data after the Act’s commencement.

Key features of the Women’s Reservation Bill (Nari Shakti Vandan Adhiniyam 2023): ·        Reservation for Women in Lower House: The Bill introduces Article 330A, providing for reservation of seats for women in the Lok Sabha, rotating these seats among different constituencies in states and Union Territories. ·        Reservation for Women in State Legislative Assemblies: It mandates reservation of seats for women in every state Legislative Assembly under Article 332A, including one-third of seats reserved for SCs/STs and from those filled through direct elections. ·        Reservation for Women in NCT of Delhi: Amendment to Article 239AA grants reservation for women in laws framed by Parliament for the National Capital Territory of Delhi. ·        Commencement of Reservation: Article 334A mandates reservation effective after the publication of the census conducted post-Bill commencement, with seats reserved for women for 15 years, extendable by Parliament. ·        Rotation of Seats: Reserved seats for women will rotate after each delimitation, determined by parliamentary law.

 

NHRC notice to Centre, T.N. govt over ‘discrimination’ by Foxconn

GS 2: Polity and Governance- Gender Equality

 

Why is it in the news?

• The National Human Rights Commission (NHRC) has issued a notice to the Central Government and the Tamil Nadu government regarding allegations of ‘discrimination’ by Foxconn against married women.

About National Human Rights Commission (NHRC): ·        The NHRC is an independent statutory body in India established to safeguard and promote human rights, ensuring protection in areas such as life, liberty, equality, and dignity of individuals. ·        It upholds rights guaranteed by the Indian Constitution and international agreements enforceable by Indian courts. ·        Establishment: Ø  Established on October 12, 1993, under the Protection of Human Rights Act (PHRA), 1993, later it has been amended by the Protection of Human Rights (Amendment) Act, 2006, and Human Rights (Amendment) Act, 2019. Ø  It operates in alignment with the Paris Principles, adopted to advance and safeguard human rights globally. ·        Composition of the NHRC: ·        The NHRC comprises a chairperson, five full-time Members, and seven deemed Members, ensuring a comprehensive representation. ·        Appointments of the chairman and members are made by the President upon the recommendations of a six-member committee. Ø  This committee includes the Prime Minister, the Speaker of the Lok Sabha, the Deputy Chairman of the Rajya Sabha, leaders of the Opposition in both Houses of Parliament, and the Union Home Minister. Ø  The chairperson is typically a former Chief Justice of India or a Supreme Court judge. ·        Tenure: The chairman and members hold office for a term of three years or until they reach the age of 70. ·        Removal: The Chairperson or any other Member of the Commission shall be removed from his office by order of the President on the ground of proved misbehavior or incapacity after the inquiry of the Supreme Court. ·        Main functions: 1.        Complaints Investigation: Inquire into complaints of human rights violations, abetment, or negligence in prevention by public servants. 2.      Intervention in Legal Proceedings: Intervene in court proceedings concerning human rights violations with the court’s approval. 3.       Prison Visits: Visit jails and institutions under state government control to assess inmate living conditions and make recommendations. 4.      Review of Safeguards: Review constitutional and legal safeguards for human rights and recommend measures for effective implementation. 5.       Addressing Terrorism and Human Rights: Study factors like terrorism affecting human rights enjoyment and suggest appropriate measures. 6.       International Human Rights Instruments: Study international treaties on human rights and recommend measures for compliance. 7.       Promotion of Human Rights Research: Undertake and promote research in human rights to enhance understanding and knowledge. 8.       Human Rights Literacy and Awareness: Spread awareness of human rights among various societal segments and educate on available safeguards. 9.      Judicial Powers and Investigations: ü  Possess powers akin to a civil court for judicial proceedings. ü  Utilize services of central or state government officers and investigation agencies for human rights investigations. ü  Investigate matters within one year of occurrence, ensuring timely intervention. ·        Nature of Functions: Primarily recommendatory in nature, focusing on advocacy and policy suggestions for human rights protection.

 

More about the news

• The NHRC called for a detailed report from the Union Ministry of Labour and Employment and the Chief Secretary of Tamil Nadu in response to claims that Foxconn systematically excludes married women from job opportunities at its iPhone assembly plant in Sriperumbudur.
• It is alleged that Foxconn has instructed Indian hiring agencies not to hire married women due to cultural reasons and societal pressures. The NHRC highlighted that if these claims are true, it would constitute a serious issue of discrimination that violates the right to equality and equal opportunity for married women.
• Additionally, the NHRC emphasized the importance of gender equality in both Indian constitutional law and international agreements, such as the International Covenant on Civil and Political Rights and the International Covenant on Economic, Social, and Cultural Rights, which prohibit discrimination based on gender in employment.
• The NHRC stressed the responsibility of state authorities to ensure that companies comply with labour laws and uphold the rights to health and dignity for all individuals, especially women, working in the private sector’s production units.
• During its investigation, the NHRC found that only unmarried women were considered eligible for assembly jobs at Foxconn, despite no mention of this requirement in the company’s advertisements. A WhatsApp chat provided as evidence revealed that a married candidate was informed that married individuals are not allowed to apply when inquiring about salary and childcare facilities.
• However, Foxconn has denied the allegations of discrimination based on marital status, gender, religion, or any other form in employment.

 

Gender Discrimination at the Workplace:   Issues with Foxconn’s Employment Policies ·        Gender Discrimination: Foxconn’s policy excludes married women from employment, citing family duties and absenteeism as reasons. ·        Reinforcement of Gender Roles: The policy perpetuates traditional gender roles, where women are expected to prioritize household responsibilities over career opportunities. ·        Inequality in Employment Opportunities: Married women are denied equal access to job opportunities and hindered in their career advancement within Foxconn. ·        Impact on Workplace Diversity: By not hiring married women, Foxconn reduces workplace diversity and excludes a significant segment of the population from employment. ·        Economic Consequences: The policy limits married women’s financial independence and their ability to contribute economically. ·        Potential Rights Violation: Foxconn’s policy may breach anti-discrimination laws and equal employment rights, raising legal concerns. ·        Unfair Generalizations: The policy makes broad assumptions about married women’s work performance without individual assessment or consideration of their qualifications.   Key Challenges Impacting Workplace Gender Inclusivity ·        Cultural Norms and Stereotypes: In Indian society, traditional gender roles persist, prioritizing family responsibilities over careers for women. Ø  Example: The gender pay gap in India illustrates these biases, with women earning 19% less than men on average. Ø  Solution: Promote gender-neutral upbringing, challenge stereotypes through media campaigns, and ensure equal opportunities in education and employment. ·        Patriarchal Organizational Structures: Many Indian workplaces maintain hierarchical structures dominated by men, hindering women’s advancement to leadership roles. Ø  Example: A study revealed that only 15% of board seats in NSE-listed companies were held by women in 2021. Ø  Solution: Implement quotas or targets for female representation in leadership, establish mentorship programs, and foster inclusive workplace policies. ·        Implicit Bias and Stereotype Threat: Ø  Unconscious biases against women persist in performance evaluations and decision-making processes. Ø  Example: Research indicates that women often receive less recognition for their work compared to male counterparts in similar roles. Ø  Solution: Conduct unconscious bias training for managers, standardize performance evaluation criteria, and ensure fairness in career advancement opportunities. ·        Harassment and Safety Concerns: Workplace harassment remains prevalent, discouraging women from reporting due to fear of retaliation. Ø  Example: The #MeToo movement highlighted widespread harassment issues in Indian workplaces. Ø  Solution: Enforce stringent anti-harassment policies, establish safe reporting mechanisms, and conduct regular training to create a respectful workplace culture. ·        Work-Life Balance Challenges: Women face difficulties balancing work and family responsibilities due to inadequate support systems. Ø  Example: Inconsistent maternity leave policies in India contribute to disparities in work-life balance for women. Ø  Solution: Promote flexible work arrangements, provide affordable childcare options, and advocate for extended parental leave policies. ·        Education and Skills Gap: Gender biases in education and vocational training limit women’s access to high-paying and emerging job sectors. Ø  Example: Women are underrepresented in STEM fields and face barriers in accessing skill development opportunities. Ø  Solution: Encourage STEM education for girls, offer scholarships, and collaborate with industries to bridge the skills gap. ·        Cultural Sensitivity Training: Cultural biases and insensitivity towards diversity can create hostile work environments and hinder inclusivity. Ø  Example: Insensitive comments or practices in the workplace can perpetuate discrimination. Ø  Solution: Implement regular cultural sensitivity training for employees and management to promote a respectful and inclusive workplace environment.   Way forward – Strategies for Advancing Gender Equality ·        Legal Reforms for Gender Justice: Strengthen and enforce laws on gender-based violence, child marriage, and workplace discrimination. Ø  Introduce provisions on marital rape in the Bharatiya Nyaya Sanhita based on Justice Verma Committee recommendations. ·        Promoting Gender-Sensitive Education: Implement gender-sensitive curricula in schools and colleges to challenge stereotypes and ensure equal educational opportunities for girls. ·        Empowering through Freelancing Platforms: Facilitate access to freelancing platforms for housewives to offer skills in areas like content writing, graphic design, and online tutoring. ·        Recognition of Unpaid Care Work: Recognize and value women’s unpaid care work, promote shared household responsibilities, and encourage men’s involvement in caregiving. ·        Ensuring Workplace Equality: Enforce equal pay policies, promote gender diversity in leadership roles, and establish safe, harassment-free work environments with supportive policies for work-life balance.

 

Sense of uncertainty: On the new criminal laws, state of preparedness

GS 2: Polity and Governance- New criminal laws

 

Why is it in the news?

• The country has recently enacted three new criminal laws, raising concerns about the readiness of the policing and judicial systems for their enforcement.
• Despite limited reports of basic training for police officers at station houses, sporadic workshops, and enhancements to the Crime and Criminal Tracking Network and Systems to facilitate electronic complaint filing, the extent of preparedness among both senior and junior police personnel remains uncertain.

 

More about the news

• The government had set July 1 as the commencement date for these laws, which include Bharatiya Nyaya Sanhita, Bharatiya Nagarik Suraksha Sanhita, and Bharatiya Sakshya Adhiniyam.

·        Indian Penal Code (IPC): Established in 1860 under the first law commission formed in 1834 by the Charter Act of 1833, the IPC is India’s official criminal code. ·        Code of Criminal Procedure (CrPC): Enacted in 1973 and effective from April 1, 1974, the CrPC provides procedural rules for administering criminal law in India. ·        Indian Evidence Act: Originally passed in 1872 during the British Raj by the Imperial Legislative Council, this act governs the rules and issues related to the admissibility of evidence in Indian courts of law.

• It seems that the Union government opted to implement these laws and allow the police, courts, and legal professionals to navigate a potentially turbulent transition rather than ensuring comprehensive readiness across the board. The duration of this initial phase of potential confusion is unpredictable, emphasizing the necessity for more time for the police and legal community to equip themselves adequately.
• Questions have arisen regarding the new laws, notably their obscure names and the absence of English equivalents, leading to speculation on why the codes are labelled with unfamiliar Hindi titles. Unlike the unchanged name of the criminal procedure code from 1898 to its replacement in 1973, the renaming of these new laws has stirred unease.
• There is a prevailing sentiment that these laws did not undergo extensive legislative debates or broad consultations with civil society, fostering apprehensions surrounding certain provisions, particularly those granting increased powers to the police, like the ability to avail multiple rounds of police custody to the detriment of citizens.
• The incorporation of ‘terrorism’ as a general offense alongside existing anti-terrorism legislation is anticipated to induce confusion. While the Centre’s statement allowing states to enact their amendments is appreciated, uncertainties persist regarding the prompt ratification of such amendments by the President.
• Although procedural enhancements like mandatory FIR registration irrespective of jurisdiction and the introduction of videography during searches and seizures are commendable, a sense of uncertainty prevails regarding the overarching impact of these new laws.

 

Positives and Concerns of the Three New Criminal Laws:   v  Positives: ·        Inclusion of sexual intercourse with a minor wife as rape marks a significant step towards protecting minors. ·        Recognition of mob-lynching as a punishable offence addresses a critical issue of hate crimes. ·        Exclusion of Section 377 from the BNS reflects a progressive stance towards decriminalization. ·        Emphasis on video-conferencing and timelines for trials aims to expedite justice delivery, contingent on effective implementation.   v  Concerns: ·        The hurried passage of laws during the pandemic consultation has raised concerns about due process. ·        While the laws introduce changes, they may not comprehensively overhaul existing legal frameworks as perceived by some experts. ·        Despite claims of abolishing sedition, the BNS widens its definition, potentially affecting freedom of expression. ·        Non-gender-neutral rape laws still limit legal options for male victims of sexual assault.   Government’s Preparedness for Implementing the 3 New Criminal Laws: ·        Training and Curriculum Integration: The Bar Council of India has mandated the inclusion of new laws in university curricula starting from the 2024-25 academic year, ensuring legal professionals are equipped. ·        Awareness and Publicity Campaign: Coordinated by the Bureau of Police Research and Development (BPR&D), an Inter-Ministerial Group is conducting a comprehensive awareness campaign to inform the public about the new laws. ·        Technological Upgrades: Ø  The National Crime Records Bureau (NCRB) has implemented 23 functional updates to the Crime and Criminal Tracking Network and Systems (CCTNS), enhancing capabilities like FIR registration. Ø  Applications like eSakshya, NyayShruti, and eSummon developed by NIC facilitate digital recording of crime scenes, court proceedings, and electronic delivery of summons. ·        Capacity Building Initiatives: BPR&D has created 13 training modules aimed at enhancing skills among police, prison officials, prosecutors, judicial officers, forensic experts, and central police organizations to effectively implement the new laws.

Israel is facing a strategic defeat in Gaza

GS 2: International Relations- Israel Conflict

 

Why is it in the news?

• Israel’s push against Hamas in Gaza, initiated in response to a cross-border attack that resulted in numerous casualties and widespread destruction, has failed to achieve its intended objectives.

 

More about the news

• Despite the extensive military campaign aimed at eliminating the Islamist militant group, Israeli forces have encountered substantial challenges. The prolonged conflict has not only devastated Gaza, displacing a significant portion of its population and causing immense loss of life, but it has also raised doubts about Israel’s ability to secure a decisive victory over Hamas.
• Furthermore, Israel’s military endeavors in Gaza have been complicated by escalating tensions with Hezbollah, which has launched attacks from Lebanon, posing a significant threat to Israel’s northern border. The retaliation from Hezbollah has further strained Israel’s military resources and deterrence capabilities. In addition to the challenges posed by Hamas and Hezbollah, Israel also faces a formidable adversary in Iran, whose actions have intensified concerns about regional security and stability.
• As Israel grapples with the complex and multifaceted challenges in Gaza, Lebanon, and beyond, the strategic landscape in the region remains fraught with uncertainty and escalating tensions. The Arab normalization process faced a setback due to the third issue.
• Prior to the October 7 attack, Israel was on the path to expanding its regional cooperation with Arab nations. By 2020, significant progress had been made through normalization agreements with four Arab countries, including the United Arab Emirates.
• Discussions between Israel and Saudi Arabia, facilitated by the U.S. and described as being at an advanced stage by Saudi’s Crown Prince Mohammed bin Salman in September 2023, have now been halted. Saudi Arabia has stated that no peace with Israel will be possible unless there is a clear roadmap towards establishing a Palestinian state based on the 1967 borders with East Jerusalem as its capital.
• Furthermore, Israel is currently facing global isolation due to its conduct during the conflict. Despite two United Nations Security Council resolutions calling for a ceasefire in Gaza, Israel has disregarded them. At the International Court of Justice (ICJ), there is a genocide case against Israel. The ICJ had previously ordered Israel to take actions to prevent a genocide in Gaza in January, and in May, the court requested Israel to halt its offensive in Rafah, all of which were ignored.
• Additionally, the International Criminal Court (ICC) prosecutor has sought arrest warrants against the top leadership of Israel and Hamas. The war has triggered student protests at universities in the West, urging governments to adopt a firmer stance towards Israel. While U.S. President Joe Biden continues to support Israel’s actions, dissenting voices are emerging in Washington.
• Lastly, the issue of Palestine has once again come to the forefront of West Asia’s geopolitics. The war in Gaza is ongoing, and tensions with Hezbollah are escalating. Iran has halted Israel’s attacks on its forces temporarily and is expanding its nuclear program. The Houthis are engaging the Americans in the Red Sea.

 

Strategic Options for Israel ·        Adopting a Long-Term Perspective: Instead of perpetual conflict, Israel could heed the UNSC’s call to cease hostilities, allow urgent humanitarian aid into Gaza, and engage in mediated talks with Hamas for the release of hostages and troop withdrawal. ·        Upholding the Values of the Abraham Accords: Israel should consider its previous progress under the Abraham Accords and listen to international calls to pause hostilities to avoid further isolation and prioritize national interests over political considerations. ·        Engaging with Hamas: Israel could explore dialogue with Hamas, facilitated by international mediators, to negotiate prisoner exchanges and ease tensions in Gaza. ·        Aligning with the US Position: Given recent criticism from the US, Israel might benefit from aligning more closely with US humanitarian concerns and efforts to deliver aid to Gaza. ·        India’s Diplomatic Role: India’s diplomatic stance, balancing relations with Arab nations and Israel, offers potential for mediation and peaceful resolution through multilateral forums like the Human Rights Council.

 

Conclusion

• Israel continues to face international criticism for its conduct during the war, while the topic of Palestine has regained prominence. The occupation of Palestine remains a contentious issue for Israel in its interactions with other nations. The events since October 7 have shifted the strategic environment to be more challenging for Israel, raising questions about its leadership and policies moving forward.

A tool to ensure complete voter anonymity

GS 2: Polity and Governance- Electoral Reforms

 

Why is it in the news?

About Model Code of Conduct (MCC): ·        MCC comprises guidelines issued by the Election Commission of India (ECI) to regulate political parties and candidates during election periods. ·        It remains in effect from the announcement of election schedules until the declaration of results.

• The Janata Dal (United) candidate from Sitamarhi Lok Sabha constituency, Devesh Chandra Thakur, garnered attention for allegedly violating the now-inactive Model Code of Conduct (MCC) and reigniting interest in a dormant writ petition (W.P.).
• The statement by Mr. Thakur underscored a transactional approach that verged on undermining democratic ideals, deviating from the essential constitutional ethos of the relation between citizens and their elected representatives.

 

Proposal of Election Commission of India (ECI):

• Fundamental to a fair election is enabling voters to cast their ballots without fear of retaliation or influence stemming from promises of rewards.
• The principle of voter secrecy, embedded in Rule 56 of the Conduct of Election Rules, 1961, aimed to discourage vote manipulation or coercion. Initially, during counting, ballot papers from various boxes were mixed to prevent voter targeting based on community-specific voting trends. With the advent of Electronic Voting Machines (EVMs), this practice was discontinued, prompting calls for a totaliser to obscure voting patterns by geographic area.
• The concept of a totaliser to anonymize booth-level voting patterns was first suggested in 2007 to address post-election voter harassment. Following examination and refinement by authorized EVM manufacturers in collaboration with the Technical Experts Committee of the ECI, the totaliser was demonstrated to political parties in 2008, receiving their approval. Trial runs were conducted in March 2009 during bye-elections in Meghalaya and Uttar Pradesh.
• Subsequently, the issue has been deliberated among the ECI, government, and legal authorities, with the government delaying the proposal until 2014 and ultimately rejecting it.
• In response to the Madras High Court’s directive in August 2011 to consider amending the rules to introduce the totaliser, the government sought a timeline for implementation, initially estimated at four months by the EC. Despite subsequent requests from the ECI in 2013 and later in 2014, progress was stalled.

Understanding the Totaliser Machine: ·        Purpose and Functionality: The Totaliser Machine is designed to aggregate votes from multiple Electronic Voting Machines (EVMs) simultaneously during the counting process. ·        Development and Implementation: Developed by Bharat Electronics Limited (BEL) in Bengaluru and Electronics Corporation of India Limited (ECIL) in Hyderabad, it ensures efficient and secure counting of votes.   Advantages of Totaliser Machine: ·        Enhanced Vote Secrecy: By aggregating votes from multiple booths, it prevents candidates from deducing voter preferences based on booth-wise trends, thus upholding the secrecy of votes. ·        Mitigation of Voter Harassment: Reduces the risk of intimidation or victimization of voters and candidates before or after elections by maintaining a collective count.   Drawbacks of the Totaliser Machine: ·        Government Concerns: The central government has expressed reservations about potential data security issues, fearing data leaks from EVMs connected to the Totaliser. ·        Importance of Booth-wise Performance: Booth-level results are crucial for political parties to strategize voter mobilization effectively, influencing turnout and management tactics on Election Day.

 

• A legal petition in April 2014 urged the Supreme Court to mandate counting results at the parliamentary constituency level to safeguard voter privacy, highlighting concerns over booth-wise result declarations aiding political intimidation. The EC maintained its support for the totaliser, emphasizing the need for rule amendments.

 

Stances of Political Parties ·        While the Law Commission of India backed the ECI’s proposal for totaliser implementation in the 255th Report, the government countered in February 2016 arguing against its public interest. In response, the EC reaffirmed the necessity of totalisers to protect voter interests, engaging with political parties for a demonstration in March 2016. Among the parties, the Bahujan Samaj Party, Congress, and Nationalist Congress Party endorsed totaliser use, with the Communist Party of India (Marxist) suggesting a phased approach, and the Bharatiya Janata Party opposing it. The EC relayed these viewpoints to the government, reiterating its original proposal. A subsequent governmental evaluation in 2016 suggested that revealing booth-level voting data could boost development efforts. ·        In October 2017, another legal petition was filed before the Supreme Court, advocating for totaliser use in the vote counting process. The matter remains stalled since March 2018, with discussions raised on the potential data leakage from EVMs. ·        The persisting question revolves around whether technology can transcend biases and tendencies in electoral processes.

 

Agenda of the 16th Finance Commission

GS 2: Polity and Governance- 16^th Finance Commission

 

Why is it in the news?

• The 16th Finance Commission (FC) is commencing its work as established by Article 280 of the Indian Constitution, with a primary focus on the devolution of the consolidated fund.
• Following the 73rd and 74th constitutional amendments, local bodies have gained significant recognition within the federal system. These amendments introduced clauses 280(3) (bb) and (c), which mandate the FC to propose measures to enhance State consolidated funds to support panchayats and municipalities.

 

About Finance Commission: ·        The Finance Commission in India is a constitutional body established under Article 280 of the Indian Constitution. ·        Appointing Authority: The President of India constitutes a Finance Commission every five years or as needed. ·        Composition: The Finance Commission comprises a chairman and four other members, all appointed by the President. ·        Tenure: Members are appointed for a term specified by the President and are eligible for reappointment. ·        Qualifications: Parliament determines the qualifications and appointment process for members. Requirements include: 1.        The chairman must have experience in public affairs. 2.       The four other members should be: 3.       A High Court judge or someone qualified to be one. 4.       An individual with specialized knowledge of government finance and accounts. 5.       A person with experience in financial matters and administration. 6.       A person with special knowledge of economics. ·        Removal: Members can be removed by the central government with the President’s approval under the following conditions: Unsound mind, Involvement in a vile act and Conflict of interest. ·        Powers of the Finance Commission: Ø  The Finance Commission has powers akin to those of a Civil Court as per the Code of Civil Procedure, 1908. Ø  It can summon witnesses and demand the production of public documents or records from any office or court. ·        Functions of Finance Commission:          Ø  Tax Distribution: Recommend distribution of net tax proceeds between the Union and States, and allocation among States. Ø  Rules for Grants-in-Aid: Recommend rules for grants-in-aid to states from the Consolidated Fund of India. Ø  Tax Devolution at State Level: Suggest ways to augment state consolidated funds to support panchayats and municipalities based on state finance commission recommendations. Ø  Miscellaneous Matters: Address any other issues referred by the President in the interest of sound finance. Ø  Report Submission: Submit a report to the President, who presents it to both houses of Parliament with an explanatory memorandum on actions taken.   Sixteenth Finance Commission (SFC): ·        Chairman: Arvind Panagariya ·        Full-Time Members: A.N. Jha (Former Expenditure Secretary and Member of the 15th Finance Commission), Annie George Mathew (Former Special Secretary of the Department of Expenditure) and Niranjan Rajadhyaksha (Executive Director of Artha Global). ·        Part-Time Member: Soumya Kanti Ghosh (State Bank of India’s Group Chief Economic Adviser) ·        The Sixteenth Finance Commission is tasked with defining the distribution of the Centre’s tax revenue to states for five years starting FY27. ·        It will make its recommendations available by 31 October 2025, covering an award period of five years beginning 1 April 2026. State Finance Commission: ·        Constitutional Position: The State Finance Commission is a constitutional body established under Article 280 following the 73rd Constitutional Amendment Act of 1992. ·        Appointment: Governors appoint the State Finance Commission every five years under Article 243-I of the Constitution of India. ·        Functions: The Commission performs functions similar to the Finance Commission at the state level, including the distribution of state funds to Panchayati Raj institutions and municipalities.

 

About the Cities

• The National Commission on Urbanization in the mid-1980s characterized cities as the primary drivers of economic growth. While this perspective may be somewhat limited, the fact remains that cities contribute approximately 66% of India’s GDP and about 90% of total government revenues. Therefore, cities play a crucial role as spatial zones for the holistic development of the country.
• Nevertheless, our current economic capacity falls short of meeting escalating requirements. According to the World Bank, an estimated $840 billion will be required for fundamental urban infrastructure in the next ten years.
• Despite the endeavours of five commissions post the 11th Finance Commission, financial allocation to cities continues to be inadequate. The fiscal condition of municipalities is weak, negatively impacting both urban productivity and the residents’ quality of life.
• The swift urbanization lacking adequate fiscal measures has detrimental implications for progress. Intergovernmental transfers (IGTs) to Urban Local Bodies (ULBs) in India constitute around 0.5% of the GDP, significantly lower than the 2-5% norm in other developing countries. For example, South Africa allots 2.6%, Mexico 1.6%, the Philippines 2.5%, and Brazil 5.1% of their GDPs to their urban areas.
• Despite IGTs contributing nearly 40% of ULBs’ total revenue, challenges persist concerning their reliability, allocation for vulnerable demographics, and equitable distribution. Given the financial situation of ULBs and the imperative for sustained support until their own income streams strengthen, IGTs remain vital.

 

About Taxation System

• The implementation of the Goods and Services Tax (GST) has led to a decrease in Urban Local Bodies’ (ULBs) tax revenue (excluding property tax) from approximately 23% in 2012-13 to about 9% in 2017-18.
• Intergovernmental transfers (IGTs) from States to ULBs remain notably low, as State Finance Commissions suggested only around 7% of States’ own revenue in 2018-19.
• It is imperative to enhance the volume of IGTs as a proportion of GDP. Despite the 74th constitutional amendment’s objective to enhance the financial capacity of ULBs, progress over the past three decades has been inadequate.
• The 13th Finance Commission noted that “parallel agencies and bodies are weakening local governments both financially and operationally.” Local governments necessitate backing from Union and State administrations in terms of finances, personnel, and technical assistance. Nonetheless, the proliferation of parallel agencies has disrupted the roles of local governments.
• Further, initiatives like the Member of Parliament Local Area Development Scheme and the Member of Legislative Assembly Local Area Development Scheme exacerbate this problem, leading to a distortion of the federal structure.

 

Importance of Census

• In the absence of the 2021 Census, relying on 2011 data is insufficient for evidence-based fiscal devolution.
• India has around 4,000 statutory towns and an equal number of Census towns, along with an estimated 23,000 villages, all effectively urban. These numbers need to be accounted for by the 16th FC, especially considering the significant migration to Tier-2 and 3 cities.
• Given this, the 15th FC’s nine guiding principles need to be reassessed. Not all, but aspects such as improving property tax collection alongside State’s GST, maintaining proper accounts, allocating resources for pollution control, and emphasizing primary health care, solid waste management, and drinking water, merit attention.

 

Conclusion

• The 16th FC should acknowledge India’s urbanization trends and ensure higher grants to urban areas.
• Further, a report by the McKinsey Global Institute cautions that without increased investment in urban infrastructure, there will be water supply shortages and untreated sewage issues.

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UPSC CURRENT AFFAIRS – 02 July 2024

GS Paper 3:

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June’s GST revenue growth slows to three-year low

GS 3: Economy- GST

Why is it in the news?

• The latest data reveals that India’s Gross Goods and Services Tax (GST) collections in June amounted to approximately ₹74 lakh crore, marking a year-on-year growth of around 7.74% from the previous year’s figure of ₹1,61,497 crore. However, this growth rate represents the slowest pace in three years.

More about the news

• Despite the absence of an official announcement, the Ministry did commemorate the seventh anniversary of the GST regime on social media, highlighting the positive impacts of the tax system on household goods, taxpayers, and small businesses.
• The growth in June’s gross GST revenues, reflecting transactions conducted in May, stands as the slowest growth rate since June 2021, when revenues increased by only 2% amid the COVID-19 pandemic.
• Compared to the preceding months, the growth in June’s GST revenues lags behind, recording 0.73% higher than May’s figure of ₹1,72,739 crore. For the first quarter, the gross GST revenues reached approximately ₹5,57,006 crore, indicating a 10.2% increase from the same period last year.
• Based on available information, the apportionment of Central and State GST collections from the Integrated GST (IGST) pool has been detailed, showcasing a rise in CGST and SGST allocations in June 2024 compared to June 2023. Despite the slowed growth in revenue for June, analysts remain optimistic about the overall trend in GST collections over the past months.

 

About Goods and Services Tax (GST): ·        The Goods and Services Tax (GST) is an indirect tax that came into effect on July 1, 2017, following the 101st Amendment to the Indian Constitution. ·        This tax replaced various indirect taxes, including service tax, VAT, and excise duties. GST is applied to the manufacture, sale, and provision of goods and services. ·        There are three types of GST: 1.        State Goods and Services Tax (SGST): Collected by the state government. 2.       Central Goods and Services Tax (CGST): Collected by the central government. 3.       Integrated Goods and Services Tax (IGST): Applied to inter-state transactions, including exports and imports. ·        Key Features of GST: Ø  Single Tax System: GST replaces multiple indirect taxes with a single, unified tax, simplifying the tax structure. Ø  Value Added Taxation: Taxes are applied at each stage of the supply chain based on the value added, ensuring a more transparent and fair tax process. Ø  Input Tax Credit (ITC): Businesses can claim credit for taxes paid on inputs, which helps to eliminate the cascading effect of taxes. Ø  Destination-Based Tax: GST is levied at the point of consumption, promoting uniformity and fairness in taxation across different regions.   About the Goods and Services Tax (GST) Council: ·        Article 279A of the Indian Constitution empowers the President of India to establish the GST Council, a joint forum of the Centre and States. ·        The GST Council is an apex decision-making body established to formulate policies, rules, and regulations, and to make recommendations to the Union and State Governments on all issues related to the Goods and Services Tax (GST). ·        The GST Council comprises the following members: 1.        Union Finance Minister: Serves as the Chairperson. 2.       Union Minister of State in charge of Revenue or Finance: Serves as a Member. 3.      Minister in charge of Finance or Taxation or any other Minister nominated by each State Government: Serve as Members

Glossing over unemployment, its high electoral price

GS 3: Economy- Unemployment

 

Why is it in the news?

• To address the current unemployment crisis in India, the economy needs to generate over 25 million jobs within the next five years to provide employment opportunities for all the currently unemployed individuals in the country.

 

More about the news

• Despite the current government’s assertion of an impressive 8% GDP growth rate in the previous year, this growth has not translated into a sufficient number of suitable job opportunities, given the prevailing high levels of unemployment.
• Although official statistics suggest a decrease in the unemployment rate from 2% in 2021 to 3.1% in 2023 among individuals aged 15 years and above, this reduction does not align with the rapid GDP growth rate of 8%.
• Over the past two decades, there has been a widening gap between the affluent and the impoverished sections of society. Furthermore, official figures highlight a significant increase in wealth inequality. Presently, 1% of India’s population possesses 40% of the nation’s wealth, which poses challenges for democracy and national stability.
• This scenario illustrates what is commonly referred to as “K-shaped” economic inequality, where the consumption and income of a small segment of the population are rising while a substantial proportion of the less privileged experience a decrease in their standard of living—an outline represented by ‘K’ graphically.

About K-Shaped Recovery: ·        A K-shaped recovery describes uneven economic recovery paths post-recession, where different sectors or groups experience varying rates or magnitudes of recovery. This divergence can lead to structural changes in the economy or society, with some sectors rebounding swiftly (the upper part of the K) while others lag behind (the lower part).

 

• Despite the current Prime Minister’s claims in public gatherings that the country has lifted 25 crore people out of poverty due to GDP growth from heavy capital expenditure over the past nine years, the validation of sustained and accelerated economic growth resulting in citizen satisfaction remains uncertain in the coming years.
• The electoral outcome has cast doubts on the assertions made by government experts through the media proclaiming India as the “fastest-growing large economy globally.”
• While the government frequently overstates an 8.2% GDP growth in 2023-24 following a robust 7% growth in the previous fiscal year, the lack of transparency in calculating these figures raises concerns about the sustained economic growth.
• The recent economic upturn has primarily been supported by a substantial budget deficit to fund the government’s capital expenditure, rather than structural investments across the industrial, agricultural, and service sectors. Past fluctuations in GDP growth rates underscore the volatility of India’s economic performance and raise doubts about maintaining the current growth trajectory in the upcoming fiscal year.
• Furthermore, policymakers have stressed the need for a “next generation of reforms” to reinvigorate national economic growth. Notably, a large percentage of jobs remain within the unorganized sectors in agriculture and the informal sectors in industry and services, underscoring the necessity for a new comprehensive economic strategy to address these pressing issues amid the current political dynamics.

Why are scientists looking for the Higgs boson’s closest friend?

GS 3: Science and Technology- Physics

 

Why is it in the news?

• At the world’s largest physics experiment, researchers have recently unveiled the most precise measurement ever recorded of the most massive subatomic particle known to us. While this discovery may seem abstract, it holds profound implications for the entire universe.
• Nearly two and a half millennia ago, the Greek philosopher Empedocles theorized that matter could be continuously divided into smaller entities until reduced to air, earth, fire, and water. In contrast, twentieth-century physicists have delved into smaller components of matter and uncovered a multitude of diverse subatomic particles, enough to populate a metaphorical zoo.

Higgs boson ·        The Higgs boson, similar to electrons or quarks, is an elementary particle that crucially imparts mass to other fundamental particles. ·        In the 1960s, Peter Higgs first proposed the existence of the Higgs field and the accompanying Higgs boson. ·        The Higgs boson is the quantum excitation of the Higgs field, believed to pervade the entire universe, and interact with other particles, granting them mass. ·        The discovery of the Higgs boson finalized what is referred to as the Standard Model of Particle Physics, which encompasses all fundamental particles (such as electrons and protons) and the forces (like electromagnetism, gravitation, or nuclear forces) that constitute the material aspect of the world.

 

Exploring the Top Quark

• Contemporary particle physicists, rather than pursuing ‘smaller’ particles, are now focused on enigmatic particles.
• In particle decay processes, more energetic particles often decay into particles of lesser energy. The considerable difference in energy between a particle and its decay products impacts its stability, with more massive particles inherently possessing greater energy. The most massive subatomic particle identified to date is the top quark.
• This quark, ten times heavier than a water molecule and approximately three times the mass of a copper atom, maintains remarkable instability, disintegrating into lighter, more stable particles in less than 10−25 seconds.
• The top quark’s mass holds significant importance within physics, as a particle’s mass is the collective sum of masses contributed by various sources, including the pervasive Higgs field that extends through the entire universe. The interaction between different fields, such as the Higgs field interacting with the electron field, imparts mass to elementary particles. This elucidation earned François Englert and Peter Higgs the 2013 Nobel Prize in Physics.
• Given the strong interaction between Higgs bosons and the top quark, measuring the top quark’s mass with utmost precision enables physicists to gain valuable insights into the Higgs boson.

 

Unravelling the Universe

• The intrigue doesn’t stop there. Physicists are eager to investigate the Higgs boson’s mass, acquired through its interactions with other Higgs bosons. Surprisingly, the Higgs boson is more massive than anticipated, indicating a more energetically charged Higgs field. This elevated energy state within the Higgs field suggests that the universe possesses greater energy than initially assumed based on physicists’ calculations.
• Additionally, physicists speculate about the origin of the Higgs field and its potential for drastic universe-modifying adjustments through self-adjustments. If their hypotheses bear out, the universe might experience significant transformations influenced by the Higgs field’s energy dynamics. They are aware that the field currently holds some potential energy and there exists a method for it to release a portion of that energy, leading to a reduced state and increased stability. There are two pathways to achieve this state of stability.

1) Firstly, the field can accumulate energy before releasing it, akin to ascending one side of a mountain to enter a deeper valley on the opposite side.

2) Secondly, the field may experience quantum tunnelling, a phenomenon where its potential energy ‘tunnels’ through the mountain instead of scaling it, then descending into the distant valley.

• In 2016, Stephen Hawking suggested that the Higgs boson could trigger the “end of the universe” in its current form. If the Higgs field were slightly stronger, it could result in the destruction of most chemical elements, including stars, galaxies, and life on Earth. Though Hawking’s observation was accurate, other physicists promptly noted that the likelihood of the tunnelling event occurring was 1 in 10100 years.
• The mass of the Higgs boson, at 126 GeV/c², is finely tuned to maintain the universe’s current structure; any deviation could lead to the universe’s demise. This intricately precise value has intrigued physicists, who seek to understand the natural processes contributing to it. The top quark plays a crucial role in this scenario due to being the most massive particle, essentially the closest companion of the Higgs boson.

 

Seeking the top quark

• Physicists unearthed the top quark in 1995 at the Tevatron particle accelerator in the US, deducing its mass to be within the range of 151-197 GeV/c². Following the Tevatron’s closure in 2011, researchers continued data analysis, updating the mass value to 174.98 GeV/c² three years later. Additional experiments and research endeavours progressively produced more exact measurements. Recently, on June 27, scientists at the Large Hadron Collider (LHC) in Europe unveiled the most precise figure to date: 172.52 GeV/c².

Large Hadron Collider (LHC) ·        The Large Hadron Collider (LHC) is the world’s largest science experiment, located on the Franco-Swiss border near Geneva, Switzerland, and operated by CERN. ·        It features a 27-kilometer circular pipe and uses nearly 9,600 magnets to accelerate protons and other particles to 99.999999% of the speed of light. ·        The LHC studies high-energy physics by colliding these particles, helping scientists explore fundamental processes and the properties of matter. ·        Quarks and gluons, the constituents of protons and neutrons, are key elements in these studies.

 

• Measuring the mass of a top quark is a challenging task, given its short lifespan of around 10-25 seconds. Typically, a particle colliding experiment generates a high-energy particle mix. Should a top quark be present, it swiftly decays into specific sets of lighter particles. Detectors observe these occurrences, recording their characteristics. Subsequently, data is collected and analyzed by physicists to recreate the physical attributes of the top quark.
• Further researchers anticipate outcomes at each stage of this process based on sophisticated mathematical models while dealing with various uncertainties. The devices utilized in these experiments integrate cutting-edge technologies; advancements in engineering further enhance both the machines and the physicists’ results.

Presently, researchers will factor the measurement of the top quark’s mass into calculations that enhance our understanding of the universe’s particles. Some will aim for an even more precise value. Hence, the precise determination of the top quark’s mass is essential in uncovering whether another particle with a mass similar to that of the top quark could be hidden in the data.

 

What is Project Nexus that RBI has signed up for?

GS 3: Economy – RBI

 

About the news

• Project Nexus is a multilateral international initiative that the Reserve Bank of India (RBI) has recently joined. This initiative aims to facilitate instant cross-border retail payments by connecting domestic Fast Payments Systems (FPSs)
• India’s Unified Payments Interface (UPI) will be interlinked with FPSs of Malaysia, the Philippines, Singapore, and Thailand through Nexus. The platform is designed for potential expansion to more countries in the future.

About Project Nexus: ·        Project Nexus is conceptualized by the Innovation Hub of the Bank for International Settlements (BIS) to improve cross-border payments by linking multiple domestic instant payment systems (IPS) globally. It is the first BIS Innovation Hub project in the payments sector moving towards live implementation. Benefits: ·        One of the key advantages of Project Nexus is its standardization of the way IPS connect globally. Instead of creating custom connections for each new connected country, operators can establish a single connection to the Nexus platform. ·        This streamlined process enables fast payments systems to reach all countries on the network efficiently, potentially accelerating the growth of instant cross-border payments. Participating Countries: ·        Project Nexus aims to interconnect the FPSs of four countries within the Association of Southeast Asian Nations (ASEAN) – Malaysia, Philippines, Singapore, and Thailand – alongside India as the founding members and initial movers of the platform. About ASEAN:  ·        The Association of Southeast Asian Nations (ASEAN) is a regional organization that promotes economic and security cooperation among its ten member countries: Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, and Vietnam. ·        ASEAN was founded on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration). ·        Aim: The motto of ASEAN is “One Vision, One Identity, One Community.” ·        Secretariat: ASEAN Secretariat is located in Jakarta, Indonesia. ·        As of 2022, ASEAN countries have a combined population of 662 million people and a collective GDP of $3.2 trillion.   ·        A signatory agreement was executed by the BIS and central banks of the founding countries, including the Bank Negara Malaysia, Bank of Thailand, Bangko Sentral ng Pilipinas, Monetary Authority of Singapore, and the Reserve Bank of India in Basel, Switzerland, on June 30, 2024. ·        Indonesia is set to join the platform in the future. Benefits of the Platform: ·        Standardization: Project Nexus standardizes the connection methods for Instant Payment Systems (IPS), simplifying integration. ·        Single Connection: Payment system operators need only connect once to the Nexus platform, granting access to all other countries in the network without custom connections. ·        Instant Payments: Facilitates cross-border payments, delivering funds from sender to recipient within 60 seconds in most cases. ·        Cost Efficiency: Provides a near-zero cost solution for sending and receiving payments. ·        Growth Acceleration: Significantly boosts the expansion of instant cross-border payments by leveraging existing instant payment systems.

 

About Fast Payment Systems (FPSs): ·        Definition: Fast payment systems (FPSs) are real-time systems enabling the immediate transfer of funds between accounts. ·        Key Points: Ø  FPSs provide fast, secure, and low-cost processing of retail transactions, ensuring immediate availability of funds to the recipient. Ø  Globally popular, with over 100 jurisdictions using FPSs, they promote competition among payment service providers and serve as gateways to additional financial services. Ø  Effective FPS design includes public good characteristics, central bank involvement, non-bank provider inclusion, diverse use cases, and cross-border connections. ·        Examples: Ø  UK: The Faster Payments Service (FPS), launched in 2008, reduces payment times between accounts. Ø  Hong Kong: The Faster Payment System, introduced in 2018, offers instant, low-cost interbank transfers.

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