DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 31st August 2024

 Syllabus

• Prelims – CURRENT EVENT

Context: India bolstered its deterrence capability on Thursday with the commissioning of its second nuclear submarine, INS Arighaat, into the Navy.

Background: –

• The discreet commissioning ceremony of the Arihant-class vessel in Visakhapatnam was attended by Defence Minister Rajnath Singh.

Key takeaways

• INS Arighaat will join its predecessor INS Arihant strengthening the country’s nuclear triad — the ability to fire nuclear missiles from platforms in the air, land and sea.
• The 6,000-tonne nuclear-propelled submarine will be armed with indigenously made K-15 missiles which have a range of over 700 km, and have undergone extensive trials over the last few months.
• Like INS Arihant, it is powered by 83 MW pressurised light-water reactors which allows it to remain submerged for longer periods when compared to conventional submarines.

INS Arihant Project

• The INS Arihant project was initiated over three decades ago, involving Russian assistance, private companies and the research establishment.
• The lead vessel of the Arihant class, INS Arihant, was laid down in 2004, launched in 2009, and commissioned into the Navy in 2016. It was the first ballistic missile submarine built by a country outside the United Nations Security Council’s five.

Additional Information

• A robust, survivable and assured retaliatory capability is in line with India’s policy to have a credible minimum deterrence capacity to underpin its ‘no first use’ commitment.
• In 2003, India declared its nuclear doctrine, reserving the right of massive retaliation if it is struck with nuclear weapons.

Source: Indian Express

 Syllabus

• Prelims & Mains – INTERNATIONAL

Context: Pakistan on Thursday said that it has invited India and Prime Minister Modi to the Shanghai Cooperation Organisation’s Council of Heads of Government meeting to be held in October.

Background:

• Pakistan holds the rotating chairmanship of the Shanghai Cooperation Organisation (SCO) Council of Heads of Government (CHG) and in that capacity, will host the two-day in-person SCO Heads of Governments Meeting in October.

About Shanghai Cooperation Organisation (SCO) 

• The Shanghai Cooperation Organisation (SCO) is a significant permanent intergovernmental organization that focuses on political, economic, and security-related cooperation across Eurasia.

Formation and Evolution

• Origins: The SCO evolved from the “Shanghai Five” group, which was established in 1996 by China, Russia, Kazakhstan, Kyrgyzstan, and Tajikistan. With the dissolution of the USSR in 1991 into 15 independent countries, there were concerns in the region about extremist religious groups and ethnic tensions. It was to manage these issues, the group was created.
• Establishment: The SCO was officially founded on June 15, 2001, in Shanghai, China, with the addition of Uzbekistan.
• Expansion: India and Pakistan joined as full members in 2017, Iran in 2023, and Belarus in 2024.

Member States and Structure

• Members: The SCO currently includes China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, India, Pakistan, Iran, and Belarus.
• Observers and Dialogue Partners: The organization also has several observer states and dialogue partners, including Afghanistan, Mongolia, and Turkey.
• Headquarters: The SCO Secretariat is based in Beijing, China.

The goals of the SCO are:

• to strengthen mutual trust, friendship and good-neighborliness between the Member States;
• to encourage the effective cooperation between the Member States in such spheres as politics, trade, economy, science and technology, culture, education, energy, transport, tourism, environmental protection, etc;
• to jointly ensure and maintain peace, security and stability in the region; and
• to promote a new democratic, fair and rational international political and economic international order.

Key Initiatives and Activities

• Annual Summits: The Heads of State Council (HSC) is the supreme decision-making body of the SCO, meeting annually to discuss and decide on major issues. The SCO council of heads of government level is the second-highest body in the grouping.
• Regional Anti-Terrorist Structure (RATS): This body coordinates efforts to combat terrorism, separatism, and extremism within the member states. RATS is headquartered in Tashkent, Uzbekistan.
• Economic Projects: The SCO has initiated various projects to enhance regional connectivity, including the Digital Silk Road and infrastructure development programs.

Significance and Impact

• Geopolitical Influence: The SCO is the world’s largest regional organization in terms of geographic scope and population, covering approximately 80% of Eurasia and 40% of the world’s population.
• Strategic Balance: The organization plays a crucial role in maintaining regional stability and fostering a multipolar world order.

Source: Hindu

 Syllabus

• Prelims – CURRENT EVENT

Context: After being extinct in Central Europe for 300 years, the northern bald ibis has made a comeback. Now, scientists acting as “foster parents” are guiding the birds to relearn their long-lost migration routes, leading them aboard a tiny plane.

Background: Thirty-six of these endangered birds are now following an ultralight aircraft on a 2,800 km journey from Austria to Spain, a trip that could take up to 50 days. During the flight, human foster parents sit at the back of the microlight, waving and shouting encouragement to the birds as they fly.

About Northern Bald Ibis 

• The Northern Bald Ibis (Geronticus eremita), also known as the Hermit Ibis or Waldrapp, is an endangered bird species.

Description

• Appearance: The Northern Bald Ibis is a large bird, measuring about 70–80 cm in length with a wingspan of 125–135 cm. It has glossy black plumage with bronze-green and violet iridescence. One of its most distinctive features is its unfeathered red face and head, along with a long, curved red bill.
• Behavior: Unlike many other ibises, the Northern Bald Ibis is non-wading and prefers open areas such as grasslands, rocky mountains, and semi-deserts.

Habitat and Distribution

• Historical Range: Historically, this species was widespread across the Middle East, northern Africa, and southern and central Europe.
• Current Range: Today, the majority of the remaining wild population is found in southern Morocco, with smaller numbers in Syria and Turkey.
• Breeding: The Northern Bald Ibis breeds colonially on coastal or mountain cliff ledges, where it typically lays two to three eggs in a stick nest.

Conservation Status

• Threats: The species has faced significant threats from hunting, habitat loss, and slow reproduction rates.
• Conservation Efforts: Thanks to international reintroduction programs and natural population growth in Morocco, the Northern Bald Ibis was downlisted from Critically Endangered to Endangered on the IUCN Red List in 2018.
• Breeding efforts to increase their population over the past two decades have been successful, but without guidance from wild ancestors, the birds no longer had any knowledge of which direction to fly for winter.
• Early reintroduction attempts were largely unsuccessful – instead of returning to suitable wintering grounds such as Tuscany, Italy, the birds flew in different directions and died.
• To prepare them for migration, chicks were removed from their breeding colonies at Rosegg Zoo in Austria just days after hatching, taken to an aviary and looked after by a human foster parent to “imprint”. Once this happens, the birds trust the human enough to follow them along the migration route.

Source: The Guardian

 Syllabus

• Prelims – ECONOMY

Context: Reliance Industries, led by Chairman Mukesh Ambani, announced a 1:1 bonus share issue during their 47th annual general meeting.

Background: This is the first bonus issue by Reliance Industries since 2017. The announcement has already positively impacted the company’s stock price, reflecting investor confidence.

About bonus share issue

• A bonus share issue, also known as a scrip issue or capitalization issue, occurs when a company offers free additional shares to its existing shareholders.

Key Points:

• Free Additional Shares: Shareholders receive extra shares without any cost.
• Proportional Allocation: The number of bonus shares received is proportional to the shares already held. For example, a 1:1 bonus issue means you get one additional share for every share you own.
• Increased Share Capital: The total number of shares increases, which raises the company’s share capital.
• No Change in Market Capitalization: The market capitalization remains the same because the share price adjusts proportionally. If the number of shares doubles, the share price halves.
• Shareholders’ Equity: The relative equity of each shareholder remains unchanged, meaning their ownership percentage in the company stays the same.
• Funding: Bonus shares are typically funded from the company’s profits or reserves.

Benefits of Issuing bonus shares for the Company:

• Enhanced Liquidity: By increasing the number of shares in the market, trading activity can rise, making the shares more liquid.
• Positive Market Perception: Announcing a bonus issue can signal the company’s strong financial health, boosting investor confidence.
• Rewarding Shareholders: It serves as a reward to loyal shareholders without impacting the company’s cash reserves.
• Improved Shareholder Base: It can attract new investors who perceive the bonus issue as a sign of growth and stability.
• Utilization of Reserves: It allows the company to utilize its accumulated reserves effectively.

Benefits of Issuing bonus shares for Shareholders:

• Increased Shareholding: Shareholders receive additional shares without any cost, increasing their total shareholding.
• No Immediate Tax Liability: Bonus shares are not taxed at the time of issuance, though capital gains tax applies upon sale.
• Improved Liquidity: More shares in the market can make it easier for shareholders to buy or sell shares.
• Psychological Benefit: Shareholders may feel more positive about their investment as they receive additional shares.
• Proportional Ownership Maintained: The issuance of bonus shares does not dilute the ownership percentage of existing shareholders.

Source: Business Standard

 Syllabus

• Prelims – CURRENT EVENT

Context: At the recent Global Fintech Fest (GFF) in Mumbai, the ex-chairman of UIDAI introduced the concept of “Finternet”.

Background: The Global Fintech Fest (GFF) is an annual fintech conference organized by the Payments Council of India (PCI), the National Payments Corporation of India (NPCI), and the Fintech Convergence Council (FCC).

Key takeaways

• Finternet is a concept introduced to describe a network of interconnected financial ecosystems, similar to the internet.
• It aims to unify various financial services and systems, making transactions cheaper, more secure, and nearly instantaneous.
• Central banks remain central to the system, ensuring trust in money, while collaborating closely with commercial banks.
• Finternet aims to create a more inclusive and efficient financial ecosystem, enabling anyone to transfer any financial asset, in any amount, at any time, using any device, to anyone else, anywhere in the world.

Key features:

• Unified Ledgers: Bringing together multiple financial markets (e.g., tokenized assets, shares, bonds, real estate) on a single programmable platform.
• Interoperability: Ensuring seamless transfer of assets and funds across different platforms and services.
• Accessibility: Making financial services more accessible, especially for people in remote or underserved areas.
• Cost Efficiency: Reducing transaction costs to make financial services more affordable.
• Security: Enhancing security measures to protect users from fraud and cyber threats.

Source: Economic Times

 Syllabus

• Prelims & Mains : CURRENT EVENT

Context: Union Ministry of Women and Child Development recently launched the new SHe-Box portal.

Background: This initiative is a critical step towards creating a safer and more inclusive working environment for women in India.

About Sexual Harassment electronic Box (SHe-Box)

• Sexual Harassment electronic Box (SHe-Box) is an effort of Government of India to provide a single window access to every woman, irrespective of her work status, whether working in organised or unorganised, private or public sector, to facilitate the registration of complaint related to sexual harassment.
• Any woman facing sexual harassment at workplace can register their complaint through this portal. Once a complaint is submitted to the ‘SHe-Box’, it will be directly sent to the concerned authority having jurisdiction to take action into the matter.

Key Features:

• Centralized Platform: It provides a single window for women to register and monitor complaints of sexual harassment, regardless of their work status (organized or unorganized, public or private sectors).
• Repository of Information: The portal serves as a centralized repository for information related to Internal Committees (ICs) and Local Committees (LCs) formed across the country.
• Complaint Filing and Tracking: Women can file complaints, track their status, and ensure time-bound processing by ICs. The portal ensures that complaints are processed efficiently and transparently.
• Assured Redressal: The portal offers a streamlined process for all stakeholders, ensuring that complaints are addressed promptly and effectively.
• Real-Time Monitoring: A designated nodal officer monitors the complaints and their investigation progress in real-time, ensuring accountability and timely action.
• Privacy Protection: Complaints can be registered safely without personal information being publicly accessible, ensuring the complainant’s privacy and security.
• Access and Usage: The SHe-Box portal can be accessed at https://shebox.wcd.gov.in/. To register a complaint, a valid email ID and mobile number are required.

The Sexual Harassment at Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013

• The Government of India (GoI) has enacted the Sexual Harassment at Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 with the objective to create a safe and secure workplace for women free from sexual harassment.
• This Act is unique in its broad coverage which includes all women irrespective of their work status, whether working in organised or unorganised, public or private sectors, regardless of hierarchy. The domestic workers are also included within its ambit.
• It defines sexual harassment at the workplace in a comprehensive manner, to cover circumstances of implied or explicit promise or threat to a woman employment prospects or creation of hostile work environment or humiliating treatment, which can affect her health or safety.

Source: Times of India

Q1.) With reference to the Finternet, consider the following statements:

1. Finternet is a concept introduced to describe a network of interconnected financial ecosystems, similar to the internet.
2. It aims to unify various financial services and systems, making transactions cheaper, more secure, and nearly instantaneous.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q2.) With reference to the Sexual Harassment electronic Box (SHe-Box), consider the following statements:

1. It provides a single window access to every woman, irrespective of her work status, whether working in organised or unorganised, private or public sector, to facilitate the registration of complaint related to sexual harassment.
2. It is launched by the Union Ministry of Women and Child Development.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

Q3.) With reference to the bonus share issue, consider the following statements:

1. A bonus issue occurs when a company decides to offer free additional shares to the existing shareholders.
2. It serves as a reward to loyal shareholders without impacting the company’s cash reserves.
3. Bonus shares are not taxed at the time of issuance, though capital gains tax applies upon sale.

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 only
3. 1 and 3 only
4. 1,2 and 3

Comment the answers to the above questions in the comment section below!!

ANSWERS FOR ’  31st August 2024 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs

Q.1) –  c

Q.2) – a

Q.3) – c