Context: 

An Inter Departmental Group (IDG) of officials of the Reserve Bank of India (RBI) have in a report cautioned that internationalisation may result in increased volatility in the rupee’s exchange rate in the initial stages.

About Inter-Departmental Group (IDG): 

• The Inter-Departmental Group (IDG) was constituted by the RBI Deputy Governor.
• Objective: 
  • To review the position of the rupee as an international currency 
  • To frame a road map for the internationalisation of the domestic currency.

Key Recommendations of the Group:

• Inclusion of the rupee in the Special Drawing Rights (SDR) basket, which is an international reserve asset created by the IMF to supplement member countries’ official reserves.
  • The value of the SDR is based on a basket of five currencies—the U.S. dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.
• Recalibration of the foreign portfolio investor (FPI) regime to accelerate the pace of internationalisation of the rupee.
• Adoption of a standardised approach or uniform template for examining proposals involving bilateral and multilateral trade agreements/arrangements for invoicing, settlement, and payment in the rupee and local currencies of counterpart countries.
• Use of existing bilateral and multilateral payment and settlement mechanisms, such as the Asian Clearing Union (ACU), to internationalise the rupee.
• Allowing non-residents to open rupee accounts to facilitate the internationalisation of the currency.
• Expansion of the Real-Time Gross Settlement (RTGS) system for settling international transactions.
• Inclusion of the rupee in the Continuous Linked Settlement (CLS) system.
  • CLS is a global initiative to reduce foreign exchange settlement risk by settling both legs of foreign exchange transactions simultaneously. 

Internationalisation of Rupee:

• Internationalisation of Rupee refers to the process of increased cross-border transactions of Indian currency, especially in import-export trades followed by other current account transactions and then capital account transactions. 
• This would enable the international settlement of trade in Indian rupees in foreign trades, as opposed to other currencies including US dollars.

Efforts to Internationalise Rupees: 

• The Reserve Bank of India (RBI),in 2022, allowed the settlement of foreign trades between partner countries in Indian currency. 
• It was announced in the backdrop of continuous weakening of rupee against the US dollar and the sanctions put on Iran and Russia by the United States on the use of their currency for transactions.
• Foreign Trade Policy 2023 also aims to push towards internationalisation of Rupee in foreign trades.
• India had the rupee arrangements with Bhutan and Nepal for a long time and recently Sri Lanka decided to formally include the rupee as a designated foreign currency.

Benefits of Internationalisation of Rupee:

• Limited exchange rate risk
• Lower cost of capital due to better access to international financial markets
• High seigniorage benefits
• Reduced requirement of foreign exchange reserves.
• Ability to insulate from payment disruptions caused by events like the Russia-Ukraine war.

Implications of Internationalisation:

• It would have monetary implications as the obligation of a country to supply its currency to meet the global rency to another.
• The internationalisation of a currency may accentuate an external shock, given the open channel of the flow of funds into and out of the country and from one currency to another.
• India will need to run continuous current account deficits in order to provide more and more liquidity needed by an expanding world economy, making it increasingly indebted over time.
• There could be conflicts of interest between short-term domestic and long-term international economic objectives. 

News Source: Indian Express 

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Context: 

A study was published in “Science Advances” that offered to help accelerate healing of chronic wounds– using a wearable, wireless, mechanically flexible smart bandage as big as a finger.

About Smart Bandage: 

• A Smart Bandage is an advanced medical dressing that incorporates various technologies to enhance the healing process of a wound.
• It consists of integrated biosensors, soft drug loaded hydrogels and signal processing and wireless communication to provide real-time feedback and facilitate better wound management.
• The device is assembled on a soft, stretchable polymer that helps the bandage maintain contact with and stick to the skin. 

How does the Smart Bandage work? 

• Smart bandages  have built-in sensors to continuously monitor various parameters of the wound, such as temperature, pH level, moisture, and oxygenation. 
• Data collected by the bandage is passed to a flexible printed circuit board, which relays it wirelessly to a smartphone or tablet for review by a physician.

Benefits:

• Enhanced Patient Comfort: Smart Bandage doesn’t have to be removed frequently to monitor the status and apply antibiotics. 
• Remote Monitoring: Smart bandages can connect to mobile applications or remote monitoring systems, allowing patients to monitor their wounds from home. 
• Lesser Hospital Visits: Cleaning and dressing the wound increases chances of bacterial contamination every time the wound is opened. So the bandage could also reduce the number of hospital visits.

Limitations:

• Need of Biosensors: The researchers noted that the mixing of newly secreted chemicals with the old ones delayed the biosensors’ response. The biosensors might require more protection.
• Lack of Affordability: There are doubts over its affording and accessibility to people of lower socio-­economic strata.
• Reliability and Accuracy: The accuracy and reliability of the sensors and monitoring systems within smart bandages can vary.                       

News Source: The Hindu

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Context: 

Taiwan will be establishing the ‘Taipei Economic and Cultural Centre (TECC) in Mumbai.

Objectives of TECC:

• To expand mutually beneficial trade and investment opportunities between Taiwan and India. 
• To promote exchanges and cooperation in science and technology, education, culture, and people-to-people ties under Taiwan’s New Southbound Policy.
• To provide visa services, document authentication, and emergency assistance to businesspeople, tourists, and Taiwanese nationals in the western region of India. 

News Source: Financial Express 

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Context: 

Cucumber Mosaic Virus (CMV) and  Tomato Mosaic Virus (ToMV) have impacted crops in Karnataka and Maharashtra respectively.

About CMV and ToMV:

• The two plant pathogens have similar names and cause similar damage to crops, but they belong to different viral families, and spread differently. 
• Both viruses can cause almost 100 per cent crop loss unless properly treated on time.
• ToMV 
  1. It belongs to the Virgaviridae family and is closely related to the tobacco mosaic virus (TMV). 
  2. ToMV hosts include tomato, tobacco, peppers, and certain ornamental plants.
• CMV:
  1. It was identified in cucumber in 1934, which gave the virus its name.
  2. CMV has a much larger host pool that includes cucumber, melon, eggplant, tomato, carrot, lettuce, celery, cucurbits (members of the gourd family, including squash, pumpkin, zucchini, some gourds, etc.), and some ornamentals. 

How do these two viruses spread?

• ToMV: 
  1. It spreads mainly through infected seeds, saplings, agricultural tools and often, through the hands of nursery workers who have failed to sanitise themselves properly before entering the fields. 
  2. It would require only a few infected saplings for the virus to take over an entire field in a matter of days.
• CMV:
  1. It is spread by aphids, which are sap-sucking insects. 
  2. Conditions of high temperature followed by intermittent rain, which allow aphids to multiply, are conducive to the spread of CMV.
  3. CMV too can spread through human touch, but the chances of that are extremely low.

Ways to Control the Virus Spread:

• Follow biosafety standards in nurseries, and compulsory seed treatment.
• Checking the trays of seedlings  before planting, and discarding any visible infected material.
• Clearing the field of weeds and plant material before fresh planting.
• Spraying quick acting insecticides or mineral oils on the plants to kill the aphids.

News Source: Indian Express

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Context: 

The International Seabed Authority is preparing to resume negotiations that could open the international seabed for mining, including for materials critical for the green energy transition.

About Deep Sea Mining:

• Deep sea mining is an emerging industry that aims to extract minerals from the ocean’s surface, including manganese nodules, seafloor massive sulphides, and cobalt crusts.
• These nodules, deposits and crusts contain materials, such as nickel, rare earths, cobalt and more, that are needed for batteries and other materials used in tapping renewable energy and also for everyday technology like cellphones and computers.
• Three types of mining: 
  1. Taking deposit-rich polymetallic nodules off the ocean floor
  2. Mining massive seafloor sulphide deposits
  3. Stripping cobalt crusts from rock.
• Some companies are looking to vacuum materials from seafloor using massive pumps. Others are developing artificial intelligence-based technology that would teach deep sea robots how to pluck nodules from the floor.

Regulation of Deep Sea Mining

• The International Seabed Authority (ISA) is currently accepting mining permit applications from companies and countries.
• States should apply to ISA regardless of whether or not they have signed or ratified the United Nations Convention on the Law of the Seas.
• Countries manage their own maritime territory and exclusive economic zones, while the high seas and the international ocean floor are governed by the United Nations Convention on the Law of the Seas (UNCLOS). 

Environmental Concerns

• Threat to ecosystem: Only a small part of the deep seabed has been explored and conservationists worry that ecosystems will be damaged by mining, especially without any environmental protocols. 
• Associated damages: Noise, vibration and light pollution, as well as possible leaks and spills of fuels and other chemicals used in the mining process.
• Harm to Marine Life: Once valuable materials are extracted, slurry sediment plumes are sometimes pumped back into the sea. That can harm filter feeding species like corals and sponges, etc.

Conclusion: 

• Mining applications need to go through a consideration process, and environmental impact assessments must be conducted before deep sea mining can take place.
• Companies like Google, Samsung, BMW, and others have pledged to avoid using minerals sourced from the oceans, supporting the World Wildlife Fund’s call for responsible sourcing.

News Source: Indian Express 

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Context:

The Ministry of Home Affairs launched the Scheme for ‘expansion and modernization of Fire Services in the states’.

About ‘Scheme for Expansion and Modernization of Fire Services in the States’:

• Aim: To expand and modernise Fire Services in the States.
• Funding: 
  • Budget: Rs 5,000 crore.
  • The State Governments shall have to contribute 25 per cent (except for the North-Eastern and Himalayan (NEH) States which shall contribute 10 per cent) of the total cost of such projects from their budgetary resources.                     

News Source: PIB  

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Context:

The Seventh edition of the bilateral Japan-India Maritime Exercise 2023 (JIMEX 23) will be hosted by the Indian Navy, at Visakhapatnam from 05 -10 July 2023. 

About JIMEX 23:

• JIMEX 23 will be conducted in two phases: Harbour Phase and Sea Phase
• Participation: 
  • India: INS Delhi, INS Kamorta,INS Shakti, Dornier, ship-borne helicopters 
  • Japan: JS Samidare

News Source: PIB

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Context: 

Recently, the Union Cabinet cleared the Digital Personal Data Protection (DPDP) Bill. 

About Data and Data Protection:

• Data: Data refers to collections of information stored in a computer-readable format, including social media messages, online habits, transactions, medical records, and personal details.
• Data Protection: Data protection aims to safeguard personal data while finding a balance between individual privacy rights and data utilisation.

Image Source: Hindustan Times

• Data Protection Laws in Other  Countries:   
  • Japan: Japan has the ‘Act on Protection of Personal Information’.
  • European Union: The General Data Protection Regulation (GDPR) was adopted in 2018.
  • China: New Chinese laws on data privacy and security issued over the last 12 months include the Personal Information Protection Law (PIPL), which came into effect in November 2021. 
• Data Protection in India:
  • Lack of Dedicated Framework: India does not have a specific legal framework for data protection.
  • Existing Acts: Some existing acts provide limited data protection
    • Information Technology Act 2000: Section 43A protects user data from misuse by corporate entities but does not apply to government agencies. It covers sensitive personal data, such as medical history and biometric information.
    • Other Acts: Acts like the Consumer Protection Act 2015 and Copyrights Act 1957 also offer some protection for personal information.
• Draft Bill: In 2018, a draft version of the Personal Data Protection Bill was prepared by a committee led by retired Justice B N Srikrishna.

Image Source: The Indian Express

Need for Data Protection:

• Invasion of Privacy: India has approximately 400 million internet users and 250 million social media users who engage in substantial online activities.
  • Without effective data protection, there is a risk of heightened surveillance and profiling of individuals without their consent.
• Economic Losses: As per the Cost of a Data Breach report, the per capita cost per lost or stolen record in data breaches reached Rs 5,019 in 2018, representing a significant increase.
• Increasing Sophistication of Cyber Crimes: India is witnessing a shift in the nature of cyber crimes, which have become more organised and collaborative.
  • The expanding volume of data on the internet and the emergence of technologies like artificial intelligence, internet of things, and big data pose a risk of data abuse and misuse.

Image Source: Mckinsey Global Institute Report

Key Features of Digital Personal Data Protection (DPDP) Bill 2022:

• Data Principal and Data Fiduciary: The bill uses the term “Data Principal” to refer to the individual whose data is being collected.
  • The term “Data Fiduciary” refers to the entity (such as an individual, company, firm, or state) that determines the purpose and means of processing the individual’s personal data.
  • For children, defined as users under the age of 18, their parents or lawful guardians are considered their Data Principals.
• Defining Personal Data and its Processing:
  • Personal data is defined as “any data by which or in relation to which an individual can be identified.”
  • Processing refers to the entire cycle of operations carried out in respect of personal data, including collection and storage.
• Cross-Border Data Flows: The Centre will notify regions to which data of Indians can be transferred, based on data security landscape and the government’s access to Indian data from those regions.
• Data Protection Board: The Bill proposes the establishment of a Data Protection Board to enforce compliance. The Data Protection Board will be “digital by design.”
• User Rights and Privacy: Users have the right to correction and erasure of their personal data held by businesses. 
  • Companies of significant size must appoint a Data Protection Officer and an independent data auditor to evaluate compliance. 
  • The Bill prohibits processing of personal data that may cause harm to children and targeted advertising on children below 18 years of age.
• Exemptions and National Security: The Bill includes exemptions for national security reasons, allowing the government to exempt state agencies from adhering to provisions in the interest of sovereignty, integrity, and security of the state. 
  • Certain businesses, based on the number of users and volume of data processed, can also be exempted. This addresses concerns from the start-up ecosystem.
• Penalties:
  • For Users: The Bill prescribes penalties for users who submit false documents during sign-up or file frivolous grievance complaints, with fines up to Rs 10,000.
  • For Entity: Penalties for data breaches and non-compliance have been increased, ranging from Rs 50 crore to Rs 500 crore. 

Concerns Associated with the Bill:

• Dilution of Right to Information (RTI) Act: 
  • The proposed Digital Personal Data Protection Bill seeks to amend Section 8(1)(j) to expand its scope and exempt all personal information from the purview of the RTI Act.
  • This amendment would eliminate the ability to invoke Section 8(1)(j) to protect privacy and deny access to personal information under the RTI Act.

• Inadequate protection of the Right to Privacy: The Bill grants wide discretionary powers to the Central government in drafting rules, raising concerns about the potential infringement on individuals’ right to privacy.
• • For instance, under Section 18, it empowers the Central government to exempt any government, or even private sector entities, from the provisions of the Bill by merely issuing a notification.
• Lack of autonomy for the Data Protection Board: The Appointment of the Board is under the Central government, which raises questions about its independence and the government’s direct control over the institution. 
  • The government can also assign the Board functions under other laws, further impacting its autonomy.
• Limited access to the Internet:  The Bill stipulates that the Data Protection Board shall be ‘digital by design’, including receipt and disposal of complaints. 
  • As per the latest National Family Health Survey, only 33% of women in India have ever used the Internet. 
  • The DPDP Bill, therefore, effectively fails millions of people who do not have meaningful access to the Internet.

Conclusion: 

• A data protection law must safeguard and balance peoples’ right to privacy and their right to information, which are fundamental rights flowing from the Constitution.
• The approval of the Digital Personal Data Protection Bill, 2022, by the Union Cabinet marks a significant milestone for India’s digital landscape. 
• As the regulatory framework for data protection in India progresses, implementation, enforcement mechanisms, and compliance will play crucial roles in establishing responsible data governance. 

News Source: The Hindu

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