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| Exclusive for Subscribers Daily: Reserve Bank of India (RBI) and Vaikom Satyagraha for the UPSC Exam? Why are topics like One Nation and One Subscription, Fermale Labour Force Participation important for both preliminary and main exams? Discover more insights in the UPSC Exam Notes for December 12, 2024 |
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Critical Topics and Their Significance for the UPSC CSE Examination on December 12, 2024
Daily Insights and Initiatives for UPSC Exam Notes: Comprehensive explanations and high-quality material provided regularly for students
For Preliminary Examination: Current events of national and international importance
For Mains Examination: GS II & III - Important Organisations & Indian Economy
Context:
The 26th Governor of the Reserve Bank of India (RBI) Sanjay Malhotra took charge of Mint Street on Wednesday, opening his account with a straight bat, committing to uphold and strengthen public trust in the central bank while maintaining a sense of continuity and the commitment to take appropriate decisions at the right time in public interest.
Read about:
Reserve Bank of India (RBI)
Monetary Policy Committee (MPC)
Key takeaways:
The Reserve Bank of India (RBI) serves as the central bank of India, tasked with overseeing and managing the country’s financial system. Established in 1935 under the Reserve Bank of India Act, 1934, it operates as a statutory body. Its key responsibilities include regulating the issuance and circulation of the Indian rupee and managing the central government’s finances. Acting as a banker’s bank, it oversees the banking sector and contributes significantly to India’s economic growth by supporting government development projects and policies.
Initially headquartered in Kolkata, the RBI moved to Mumbai in 1937. Originally a privately-owned entity, the RBI was nationalized in 1949, following Independence, and is now entirely owned by the Government of India.
Major Functions of the RBI
According to its preamble, the RBI is tasked with "regulating the issue of banknotes, maintaining reserves to secure monetary stability, and operating the currency and credit system to the country's advantage." It also aims to implement a modern monetary policy framework that balances price stability with economic growth.
Core Functions of the RBI
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Currency Issuance:
- The RBI is the sole authority responsible for printing currency notes, except for the one-rupee note, which is issued by the Ministry of Finance.
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Banker to the Government:
- The RBI provides banking services to both the central and state governments. It offers advice on monetary policy and manages the government’s public debt.
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Banker’s Bank:
- Often referred to as the banker’s bank, the RBI performs functions for commercial banks similar to what banks do for their customers.
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Regulation of Credit:
- The RBI controls the flow of money within the economy, addressing inflation and systemic risks through timely policy interventions.
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Management of Foreign Reserves:
- The central bank maintains stability in foreign exchange rates by buying and selling foreign currencies as needed.
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Support for Development:
- The RBI plays an essential role in supporting the government’s developmental programs and policies, taking measures to promote economic progress.
1.Which one of the following activities of the Reserve Bank of India is considered to be part of 'sterilization’? (UPSC 2023)
(a) Conducting 'Open Market Operations'
(b) Oversight of settlement and payment systems
(c) Debt and cash management for the Central and State Governments
(d) Regulating the functions of Non-banking Financial Institutions
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Answer (a)
Sterilization refers to the actions taken by a central bank to neutralize the impact of foreign exchange inflows or outflows on the domestic money supply. In India, the Reserve Bank of India (RBI) uses Open Market Operations (OMO) to absorb or inject liquidity into the financial system to offset the monetary effects of foreign exchange transactions.
This activity ensures that foreign exchange interventions do not disturb the overall monetary stability in the economy. |
Over a century ago, the Vaikom Struggle marked a historic socio-political turning point in India. This movement, which successfully overturned the prohibition against backward caste Hindus entering the Vaikom Mahadeva temple in the princely state of Travancore, became the precursor to numerous mass movements advocating religious reform. The principles of the Dravidian Movement, championed by Periyar E.V. Ramasamy, emerged from this struggle and played a vital role in promoting equality within Hindu society. However, this progress was firmly anchored by a critical provision in the Constitution, introduced by Dr. B.R. Ambedkar. Commemorating the Vaikom Struggle’s centenary honors both Periyar’s determination and Ambedkar’s constitutional foresight while reaffirming the reformist ethos that continues to shape South Indian politics.
Evolution of the Movement
- The Vaikom Struggle arose in response to the unjust restrictions barring backward caste Hindus from using the streets surrounding the Vaikom temple. Efforts by the Kerala State Congress Committee and other activists initially faced strong opposition from authorities.
- The movement gained momentum in 1924 with the involvement of Periyar, transforming it into a mass movement that united people across social classes.
- By November 1925, these restrictions were lifted, signaling a significant shift toward social justice. This victory inspired similar movements across India, with B.R. Ambedkar leading efforts for Dalit entry into temples like the Ambadevi Temple and Kalaram Mandir.
- The trajectory of reform in South India, however, moved swiftly. Legislative milestones included the 1932 bill for temple entry, the Travancore Temple Entry Proclamation of 1936, and the Malabar Temple Entry Bill of 1938.
- Notable events followed, such as the entry of backward castes into the Madurai Meenakshi and Thanjavur Brihadeeswara temples in 1939, culminating in the Madras Temple Entry Authorization Act of 1947, which allowed Hindus of all castes to worship in temples within the Madras Presidency.
Constitutional Framework
State Regulation of Temples
- Historical evidence supports state intervention to ensure equality and access in public religious spaces. Legislative initiatives, such as the Madras Hindu Religious Endowments Act of 1927 and the Tamil Nadu Hindu Religious and Charitable Endowments Act of 1959, demonstrate consistent intent to align temple management with public morality.
- Landmark judgments, including the Shirur Mutt case (1954), affirmed that the state could oversee secular aspects of temple administration while respecting essential religious practices.
- Successive Tamil Nadu governments since 1970 have enacted reforms allowing backward caste Hindus to serve as priests, challenging traditional norms. The judiciary has upheld these measures while categorizing certain temples as adhering to unique "Agamic" traditions.
Continuing Challenges and Reforms
- In recent years, Kerala and Tamil Nadu have appointed non-Brahmin archakas and other temple functionaries, sparking resistance from conservative factions.
- These reforms confront deeply ingrained religious orthodoxy and social hierarchies, yet the drive for equality remains steadfast.
- A century after the Vaikom Struggle and more than 75 years since the Constitution's adoption, a growing moral consensus underscores the importance of such reforms.
- The governments of Tamil Nadu and Kerala will jointly commemorate the Vaikom Struggle centenary on December 12, 2024.
- This celebration not only honors a pivotal moment in social reform but also recognizes the collaboration between two great leaders—Periyar and Ambedkar—whose efforts laid the foundation for a more inclusive society
1.Which of the following statements about the Vaikom Satyagraha is/are correct?
- The Vaikom Satyagraha was a movement aimed at securing the rights of backward castes to use public roads around the Vaikom Mahadeva Temple.
- Periyar E.V. Ramasamy played a significant role in the movement, and he later came to be known as the "Vaikom Hero."
- The success of the Vaikom Satyagraha directly led to the Temple Entry Proclamation of 1936 in Travancore.
Select the correct answer using the codes given below:
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
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Answer (a)
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What is the purpose of ONOS?
When scientists complete an experiment, they document their methods and findings in research papers published in journals. These journals review, edit, and distribute the papers for the benefit of other researchers and the public, often charging a fee for access. Subscription-based journals typically charge readers for access, while some Open Access (OA) journals, particularly 'gold' OA, require researchers to pay fees to publish their work. In India, research institutions have previously subscribed to journals through various consortia. ONOS aims to streamline access by providing government-funded institutes with access to over 13,000 journals from 30 major international publishers, replacing these consortia.
Why did ONOS attract criticism?
At the time of its announcement, the Ministry of Education's press release provided limited information, leading to widespread concerns. Critics pointed out the absence of details on which journals would be included, how the ₹6,000 crore allocation (for three years) would be spent, and how ONOS would support open-access publishing efforts. There were also questions about whether funds allocated for foreign journals could have been better utilized to support domestic publishers. Additionally, it was unclear whether ONOS would assist researchers with paying article processing charges (APCs) for gold OA journals or offer discounts for these charges.
What was clarified on December 11?
During the press conference, representatives from the Principal Scientific Advisor's office, the Department of Science & Technology, and the Department of Higher Education provided further details.
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The Package: Students and staff at all public institutions will have access to all papers from ONOS-participating journals, regardless of their field of study. Efforts are underway to expand the list of journals available.
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Implementation Phases: The rollout of ONOS will occur in three phases: (i) merging existing consortia and ensuring journal access across all public institutions, (ii) expanding access to private institutions, and (iii) creating “universal access” for all citizens through public libraries.
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Open Access: A pilot program will allocate ₹150 crore annually to cover APCs. The government has negotiated discounts for researchers publishing in certain OA journals. Officials also acknowledged the growing importance of transformative OA models and indicated that ONOS would incorporate them as the initiative evolves. Currently, about 65% of papers by Indian scientists are published in subscription-based journals.
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Support for Domestic Efforts: The government recognized the need to bolster domestic publishing and pointed out the existence of five digital repositories in India, where researchers can deposit their papers for free public access. However, these repositories are not widely used. Efforts are also underway to promote Indian journals, revise how institutions evaluate research, and shift focus from journal titles to the merit of individual work
1.Consider the following statements regarding the ‘One Nation, One Subscription’ (ONOS) initiative:
- The ONOS initiative aims to provide access to research journals for both public and private educational institutions in India.
- It includes provisions for supporting researchers with article processing charges (APCs) for publishing in Open Access (OA) journals.
- The initiative replaces multiple consortia currently used for journal subscriptions with a single national-level system.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
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Answer (c)
Statement 1: "The ONOS initiative aims to provide access to research journals for both public and private educational institutions in India."
Statement 2: "It includes provisions for supporting researchers with article processing charges (APCs) for publishing in Open Access (OA) journals."
Statement 3: "The initiative replaces multiple consortia currently used for journal subscriptions with a single national-level system."
Given my analysis, statements 1 and 3 appear to be correct. |
- The motion seeks to test whether the government enjoys the confidence of the majority in the legislature. If the motion is passed, the government is required to resign.
- In India, a no-confidence motion is not explicitly mentioned in the Constitution but is governed by Rule 198 of the Rules of Procedure and Conduct of Business in the Lok Sabha.
- It applies only to the Lok Sabha, not the Rajya Sabha, as the latter does not have a direct role in forming or dismissing the government.
- Any member of the Lok Sabha can move a no-confidence motion, provided they have the support of at least 50 members to admit the motion for discussion.
- The Speaker decides whether to accept and schedule the motion for debate and voting.
- If the motion is passed by a majority of the members present and voting, the Council of Ministers, including the Prime Minister, is required to resign.
- If the motion is defeated, the government continues in office.
- It upholds the principle of collective responsibility, wherein the entire Council of Ministers stands or falls together.
- It acts as a check on executive power, ensuring the government remains accountable to the legislature.
Article 67 of the Indian Constitution outlines the conditions and procedure for the removal of the Vice President. It states:
- The Vice President can be removed from office by a resolution of the Council of States (Rajya Sabha) passed by a majority of its members and agreed to by the House of the People (Lok Sabha).
- A notice of at least 14 days must be given before moving such a resolution
Debates in the Constituent Assembly:
During the Constituent Assembly Debates, there was extensive discussion on the role and accountability of the Vice President. Some key points:
- The drafters emphasized that the Vice President, being the ex-officio Chairman of the Rajya Sabha, must be accountable to the legislature.
- Members debated the need for a removal mechanism distinct from impeachment to simplify the process, given that the Vice President does not hold executive powers like the President.
1.Consider the following statements regarding the No-Confidence Motion in the Indian parliamentary system:
- A no-confidence motion can be moved in both the Lok Sabha and the Rajya Sabha.
- The Speaker of the Lok Sabha has the authority to decide whether the motion is admissible for discussion.
- The passing of a no-confidence motion results in the resignation of the entire Council of Ministers.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) 1, 2, and 3
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Answer (b)
Statement 1: "A no-confidence motion can be moved in both the Lok Sabha and the Rajya Sabha."
Statement 2: "The Speaker of the Lok Sabha has the authority to decide whether the motion is admissible for discussion."
Statement 3: "The passing of a no-confidence motion results in the resignation of the entire Council of Ministers."
Let me break down the context to help you understand these nuances:
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- Labour Force Participation Rate (LFPR) refers to the proportion of the working-age population (typically aged 15 years and above) that is part of the labour force, either employed or actively seeking employment.
- The Periodic Labour Force Survey (PLFS) by the Ministry of Statistics and Programme Implementation (MoSPI) is the primary source for LFPR data.
- India's overall LFPR is lower than the global average, with significant gaps in gender participation.
- Female LFPR: Particularly low due to societal norms, safety concerns, and unpaid care work
- Skill India Mission and Pradhan Mantri Kaushal Vikas Yojana (PMKVY) aim to enhance employability.
India has one of the lowest female labour force participation rates (LFPR) globally. Between 2000 and 2019, female LFPR experienced a significant decline of 14.4 percentage points, compared to an 8.1 percentage-point decline for males. However, this trend reversed from 2019 to 2022, with female LFPR increasing by 8.3 percentage points, outpacing the 1.7 percentage-point rise in male LFPR.
- Despite this improvement, a substantial gender disparity persists. In 2022, the female LFPR stood at 32.8%, which is 2.3 times lower than the male LFPR of 77.2%.
- The low female LFPR is a major factor contributing to India’s overall low LFPR. While it was still below the global average of 47.3% in 2022, it was higher than the South Asian average of 24.8%, according to ILO data.
Employment trends indicate a gradual shift from agriculture, which accounted for around 60% of total employment in 2000, to approximately 42% by 2019. This decline in agricultural employment has been absorbed mainly by the construction and services sectors, whose combined share increased from 23% in 2000 to 32% in 2019. However, the share of manufacturing in employment has remained relatively stagnant, hovering between 12% and 14%.
Since 2018-19, this slow structural transition has either plateaued or reversed, marked by a resurgence in agricultural employment. Additionally, while youth employment has risen, concerns remain regarding the quality of jobs available, particularly for highly educated young workers
Statistics
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The India Employment Report 2024 highlights concerns about deteriorating employment conditions. The shift from farm to non-farm employment has reversed, and the rise in self-employment and unpaid family work is primarily driven by women. Youth employment quality lags behind that of adults, and wages and earnings have either stagnated or declined.
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While the Employment Condition Index showed improvement between 2004-05 and 2021-22, states like Bihar, Odisha, Jharkhand, and Uttar Pradesh consistently ranked at the bottom, whereas states such as Delhi, Himachal Pradesh, Telangana, Uttarakhand, and Gujarat consistently performed better.
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The index measures seven key labour market outcomes: (i) proportion of workers in formal, regular employment, (ii) share of casual labourers, (iii) percentage of self-employed workers below the poverty line, (iv) workforce participation rate, (v) average earnings of casual labourers, (vi) unemployment among educated youth, and (vii) youth not in employment, education, or training.
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Informal employment has seen an upward trend, with nearly half of formal sector jobs being informal. Women have increasingly taken up self-employment and unpaid family work. The report states that around 82% of the workforce is in the informal sector, and nearly 90% is informally employed. Self-employment dominates as the primary employment source, accounting for 55.8% in 2022, while casual and regular jobs made up 22.7% and 21.5%, respectively.
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Between 2000 and 2019, self-employment remained steady at around 52%, while regular employment grew by 10 percentage points, reaching 23.8%. By 2022, this trend had reversed, with self-employment rising to 55.8% and regular employment dropping to 21.5%. Casual employment declined steadily from 33.3% in 2000 to 22.7% in 2022.
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Regular employment is generally associated with higher job quality due to consistent work and social security benefits. In contrast, casual work is linked to poorer job quality due to irregularity and lower daily earnings
| Subject | Topic | Description |
| History | Modern Indian History | Company rule and Crown rule 1773 - 1947 |
| History | Modern Indian History | Fall of Mughals |
| History | Modern Indian History | Establishment of British rule in India |
| History | Modern Indian History | Economic Policies of the British |
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