Banks are repeating past mistakes by aggressively lending to India’s microfinance sector, risking financial instability.

What is Microfinance?

• As per the  Task Force on Supportive Policy and Regulatory Framework for Microfinance set up by National Bank for Agriculture and Rural Development (NABARD) in 1998:
  • Microfinance refers to the “provision of thrift, credit and other financial services and products of very small amounts to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve living standards”.

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• Regulatory Framework:  
  • MFIs are governed by the RBI’s Non Banking Financing Company–microfinance institutions (NBFC-MFIs)- Directions, 2022.
  • The Microfinance Institutions Network (MFIN) was started as a self regulatory body for the sector and all the NBFC-MFI are eligible for membership.
    • In 2014, MFIN was formally recognized as a self regulatory body by the RBI. 

Components of Microfinance

• Microcredit: Small loans given to individuals without any collateral, steady employment or verifiable credit history.
  • As per the Reserve Bank of India (RBI): A microfinance loan is defined as a collateral-free loan given to a household having annual household income up to ₹3,00,000.
• Microsavings: Small deposit requirements, no service charges for low income individuals.
• Microinsurance: Affordable low premiums and coverage insurance products to manage risks such as health emergencies, natural disasters, crop failure etc.
• Group Lending: A model where small groups jointly guarantee loans, fostering accountability and reducing default rates.
  • Example: Joint Liability Group (JLG) is an informal group of 4-10 individuals, primarily farmers or rural workers.
    • Loans are secured through mutual guarantees, with shared repayment responsibility.
• Microfinance Institutions (MFI): A large number of organisations with varied size and legal forms offer Microfinance services. 

Microfinance In India

• Microfinance’s contribution to India’s GVA: The microfinance sector contributed about 2% of India’s gross value added (GVA) in 2018-19, according to a study by the National Council of Applied Economic Research (NCAER).

• Geographic Distribution of Loans: 76% of the loan portfolio is in rural areas, while 24% is in urban areas.
• Growth in Microfinance Sector’s Loan Portfolio: As of March 31, 2024, the microfinance sector’s gross loan portfolio (GLP) increased by 24.5%, reaching ₹4.33 lakh crore from ₹3.48 lakh crore the previous year.
• Annual Growth in Microfinance Loans: Microfinance loans grew by 18.3% year-on-year as of June-end, although default rates have also increased.
• Decline in Loan Collections and Rising Delinquencies: Data from Microfinance Industry Network (MFIN) and India Ratings show a decline in loan collections and rising delinquencies.

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Significance of Microfinance

• Poverty Alleviation: Microfinance helps individuals start or expand small businesses, generating income and lifting families out of poverty.
• Women Empowerment: With a significant focus on women borrowers, it enhances their financial independence and decision-making power.
• Economic Development: By supporting small businesses, microfinance contributes to local economic growth and job creation.
• Social Impact: It enables better access to education, healthcare, and improved living conditions for families.
• Financial Inclusion: Microfinance institutions (MFIs) provide access to financial products and services to underserved populations, bridging the gap with mainstream banking.
  • Microfinance is a driver of financial inclusion and directly addresses SDG 1 (No poverty), SDG 5 (Gender equality), and SDG 8 (Decent work and economic growth). 

Reasons for Increased Microfinance Lending In India

• Reduced Credit Demand: Lack of corporate credit demand has driven banks toward retail and micro-finance lending.
  • The Reserve Bank of India (RBI) has tightened regulatory norms leading to stiffer funding conditions.
  • Therefore, the lending by banks and NBFCs is expected to slow down to 12%, totaling ₹19 lakh crore in FY25, down from ₹22 lakh crore last year.
• Priority-Sector Lending Pressure: Banks face mandates to meet lending targets in priority sectors.
  • Priority sector lending is a government initiative which requires banks to allocate a percentage of investments in specified priority sectors at a reduced interest rate. 
  • Currently only microfinance institutions registered as NBFC-MFIs are designated as a priority sector.
  • Targets under PSL:
    • Regional Rural Banks and Small Finance Banks: 75 percent of Adjusted Net Bank Credit (ANBC) or Credit Equivalent Amount of Off-Balance Sheet Exposure (CEOBE), whichever is higher.

• Regulatory Changes by RBI: Removal of interest-rate caps offered by non-bank microfinance institutions (NBFC-MFIs) has fueled rapid growth in microfinance loans.
  • With this, the underwriting of loans will be done on a risk-based analysis, and a risk premium will be charged based on the borrower.
• Bridging Credit Gaps: The rise in microfinance lending can be seen as  banks’ efforts to bridge credit gaps to provide last-mile credit delivery and empower underserved rural populations.
• Technological Advancements: The adoption of technology in loan disbursement, collection, and monitoring has made microfinance more efficient and scalable.
• Rise of Private Capital: With the sector’s proven potential and growing demand, private capital has increasingly been attracted to microfinance institutions (MFIs), fueling further expansion.

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Potential Risks to the Banking Sector Due to Increase In Microfinance Lending

• Reduced Profits: Higher provisioning for bad loans impacts profitability.
• Increased Interest Rates: Banks may charge higher rates across the board to protect margins.
• Credit Aversion: Rising defaults could make banks hesitant to lend to the sector, affecting underserved borrowers.
• Credit Risk: Over-indebtedness among microfinance borrowers can lead to higher default rates, affecting banks indirectly.
• Systemic Risk: Defaults in the microfinance sector could trigger wider financial instability, impacting the banking system.
• Regulatory and Compliance Risks: Increased microfinance lending may lead to stricter regulations, raising compliance costs for banks.
• Ever-Greening Loans: This practice involves lenders providing new loans to borrowers unable to repay existing ones, temporarily preventing default. 
  • However, it masks the borrower’s true financial health and can lead to over-leveraging, increasing the risk of future defaults.

Overall Challenges of Microfinance Institutions  

• Higher Interest Rate Compared To Mainstream Banks : Microfinance institutions have a limited transaction volume, yet the cost of those transactions is constant and substantial, posing a considerable problem for all of them. 
  • Serving remote and rural areas involves significant administrative and logistical expenses.
  • Operational costs of MFIs often translate into higher interest rates for borrowers.
• Default on a loan : These institutions  provide loans without requiring collateral, increasing the risk of default and bad debts. 
  • Borrowers often take multiple loans from different MFIs or informal lenders, leading to unsustainable debt levels.
• Skewed Distribution: The eastern and north-eastern regions of India hold the largest share of 37% in the loan portfolio, followed by the southern region at 27%, and the western region at 15%. 
  • As of 2022, 82% of the loan portfolio was concentrated in ten States.
• Limited Access to Capital: MFIs struggle to secure funds for their operations, especially in countries with underdeveloped financial markets.
  • Over-reliance on donor funding and grants can limit their ability to scale sustainably.
• Lack of Financial Literacy: Borrowers often lack an understanding of loan terms, repayment obligations, and financial management.
  • Poor financial literacy can lead to misuse of loans and an inability to repay.
• Inadequate Ground-Level Presence: Banks lack the on-ground infrastructure that micro-finance institutions (MFIs), small finance banks, and regional rural banks possess.

Initiatives to Improve The Microfinance Ecosystem In India

• SHG-Bank Linkage Programme (SHG-BLP): was launched by NABARD in 1992 Under this programme, banks were allowed to open savings accounts for SHGs.
  • Bank Sakhis, trained members from SHGs served as intermediaries, aiding SHG members in transactions and application processes.
• Micro Finance Development and Equity Fund by NABARD: NABARD  created the Micro Finance Development and Equity Fund (MFDEF) in 2006 to help MFIs with quasi-equity and subordinated debt instruments.

• Pradhan Mantri Mudra Yojana: It was launched by the government in 2015 for providing loans up to Rs. 10 lakh to the non-corporate, non-farm small/micro-enterprises.
• e-Shakti Programme of NABARD: The primary goal of the E-Shakti Project is to digitise the accounts of various SHGs and to bring the members of the groups under the fold of Financial Inclusion.
• PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi): The Ministry of Housing & Urban Affairs launched this scheme to facilitate collateral free working capital loans of up to INR10,000/ of one-year tenure, to approximately 50 lakh street vendors.
• Kudumbashree: It  is a women empowerment and poverty eradication program launched by the Kerala government in 1998. 
  • It focuses on microfinance, providing women in rural and urban areas with access to savings, loans, and financial support through self-help groups (SHGs). 
• RBI’s Regulatory Framework for Microfinance Loans: 
  • Creation of NBFC-MFIs in 2011: Created a distinct category for microfinance institutions with a focus on customer-centric practices, such as capping borrower indebtedness and transparent pricing.
  • Harmonised Guidelines in 2022:
    • RBI has now set a common household limit of Rs 300,000 for loans to qualify as microfinance. 
    • For entities to qualify for an NBFC-MFI licence, they should have at least 75% of assets in microfinance and the cap on NBFCs was increased to 25% of assets as against 10% earlier.
  • Advisories on Lending: Periodically issued advisories to prevent multiple lending and address unethical practices like “ever-greening” loans.
  • Continuous Monitoring: RBI emphasises real-time data submission to Credit Information Companies (CICs) for effective risk management and regulatory oversight.

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Way Forward

• Strengthening Regulatory Oversight: Enforce strict compliance with RBI’s harmonised guidelines to ensure uniformity in practices across all microfinance players.
• Need for Balanced Oversight: Policymakers and banks must heed early warning signs to ensure stability in the microfinance sector without stifling credit delivery.
• Loan Purpose Verification: Ensure loans are utilised as intended by monitoring their end-use.
• Enhancing Financial Literacy: Conduct large-scale awareness programs to educate borrowers on responsible borrowing, repayment obligations, and grievance redressal mechanisms.
• Improving Risk Mitigation: Promoting sharing of credit information among MFIs to prevent over-leverage by borrowers.
• Building Institutional Capacities: Invest in training and capacity building for MFIs, SHG facilitators, and Bank Sakhis to enhance service delivery.

Conclusion

Ensuring the health of the banking sector through prudent lending practices and robust oversight is crucial for sustainable microfinance growth and financial stability.

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The third annual Digital Life Certificates (DLCs) Campaign is set to  run from November 1 to November 30.

The 3rd Annual Digital Life Certificates (DLCs) Campaign 

• Organized by:  The Department of Pension and Pensioners’ Welfare (DoPPW) under the Ministry of Personnel.
  • 1,900 camps are being held across India to assist pensioners in generating DLCs.
• Jeevan Pramaan Data
  • In the previous campaign, 1.47 crore DLCs were generated, including 45.46 lakh central government pensioners. biometric enabled digital service

About Digital Life Certificates (DLCs) or Jeevan Pramaan

• It is a biometric enabled digital service for pensioners. 
• Launch Date: 2014.
  • Since then  the government has issued Digital Life Certificates (DLCs) or Jeevan Pramaan to simplify the process.
• Purpose: Eliminates the need for pensioners to physically visit pension-disbursing authorities (banks, post offices) or submit paper certificates.
• Pensioner Statistics: As of March 31, 2024, there were 64.88 crore pensioners.
• Primary beneficiaries of Digital Life Certificates (DLCs): 
  • Central and state Government Pensioners
  • Defense and Armed Forces Pensioners
  • Retirees from the Indian Railways
  • Employees from various PSUs
  • Retired faculty and staff from universities and colleges.
  • Pensioners from the telecom and postal sectors.

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Key Insights from the Campaign

• Authentication Trends:
  • Face authentication usage increased to 31.02% from less than 20% last year (Nov 1–11).
  • 63% opted for fingerprint authentication during the same period.
• DLCs Generated:
  • 48.10 lakh certificates generated in the first 11 days.
  • 37.60 lakh DLCs generated between Nov 1–8, with:.
• Regional Highlights
• • States with the highest DLC generation:
    • Maharashtra leads, followed by Tamil Nadu, West Bengal, Uttar Pradesh, and Karnataka.

Benefits of Digital Campaigns

• Reduces the need for pensioners to visit offices every year.
• Enhances digital empowerment and convenience for retirees.

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The Anusandhan National Research Foundation (ANRF) has announced the launch of the Partnerships for Accelerated Innovation and Research (PAIR) Programme.

• The operationalisation of the ANRF was initiated with the First Meeting of the Governing Board (GB) on September 10, 2024, which was chaired by the Prime Minister as the President of the Governing Board (GB).

Key Initiatives Announced at ANRF’s First Meeting

• Mission for Advancement in High-impact Areas (MAHA): Focus on solution-driven research in priority areas such as EV mobility, Advanced Materials, Solar Cells, and Health & Medical Technology.
• ANRF Centre of Excellence (ACE): Establishing world-class research centers with significant funding support.
• Partnerships for Accelerated Innovation and Research (PAIR) : To transform research and innovation across Indian universities using a hub-and-spoke model.
• These initiatives align with the National Education Policy (NEP) 2020 and aim to transform Research and Development across India.

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About Anusandhan National Research Foundation

• Established by: Anusandhan National Research Foundation (ANRF) Act 2023.
• Recommended by: National Education Policy (NEP) 2020.
• Apex body for: Providing strategic direction for scientific research in India.
• Aim: To promote and nurture R&D activities and foster a culture of research and innovation in Indian universities, colleges, research institutions, and R&D laboratories.
• Integration: The Science and Engineering Research Board (SERB), established in 2008, has been subsumed under the ANRF.

Governing Board of ANRF

• Headed by: Prime Minister of India.
• Vice Presidents: Union Ministers for Science and Technology and Education.
• Member Secretary: Principal Scientific Advisor.
• Other Members: Secretaries of the Departments of Science and Technology, Biotechnology, and Scientific and Industrial Research.
• Executive Council: With Principal Scientific Advisor as Chairman.
• Key Functions:
  • Evaluate applications for grants.
  • Prepare budgets and maintain accounts of the Foundation.

About PAIR Programme

• Objective: The Partnerships for Accelerated Innovation and Research (PAIR) programme aims to enhance research and innovation capabilities in Indian universities with limited research infrastructure. 

• • This is achieved through a mentorship-driven hub and spoke model involving collaborations between high-ranking institutions (hubs) and emerging institutions (spokes).
• Ministry: Under Ministry of Science and Technology.
• Implementing Body: Anusandhan National Research Foundation (ANRF), established under the ANRF Act 2023.

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Concept of PAIR (Hub and Spoke Model)

• Hub Institutions: In the first phase, the Hub institutions would include institutions within the top 25 NIRF overall ranking as well as Institutions of National Importance within top 50 NIRF overall ranking.
  • Serve as mentors and provide access to resources and expertise.
• Spoke Institutions: Central and State Public Universities ranked in the top 200 (NIRF Overall) as well as  top 100 (NIRF University/State Public University Rankings).
  • Eligibility conditions will be expanded to include other universities and institutions in subsequent phases
• Budget Structure:
  • Maximum funding per network: ₹100 crore.
  • 30% allocated to hub institutions.
  • 70% allocated to spoke institutions.
  • Private institutions acting as hubs must contribute 25% of their allocated budget.
• The PAIR programme aims to:
  • Establish a robust research ecosystem through collaborative mentorship.
  • Boost research quality and innovation in emerging institutions.
  • Promote regional diversity and improve infrastructure for impactful, globally competitive research.

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In a groundbreaking discovery, researchers have uncovered the world’s largest coral colony in the Solomon Islands, located in the southwest Pacific Ocean.

Key Highlights About Largest Coral Colony

• Discovery: Found during an October 2024 expedition by National Geographic’s Pristine Seas team.
  • Discovered accidentally by a videographer documenting climate change impacts on the Pacific Ocean.
• Size and Age: Measures 112 feet by 105 feet, rises 16 feet from the ocean floor, and lies at a depth of 42 feet.
  • Estimated to be around 300 to 500 years old.
• Type of Coral: Identified as Pavona clavus (shoulder blade coral).
  • Distinctive features include column-like structures resembling shoulders and vibrant colors brown, yellow, red, pink, and blue.
• Unique Characteristics: Made up of nearly a billion individual coral polyps functioning as a single organism.
  • Described as resembling an “underwater cathedral,” evoking awe and a connection to the past.

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Significance of the Discovery

• Resilience and Vulnerability: Likely protected from climate change impacts due to its depth, avoiding warmer surface waters.
  • Highlights the dual nature of coral ecosystems that is  beauty and fragility in the face of warming oceans.
• Call for Action: Serves as a reminder of the need for conservation to protect coral reefs, which are vital to marine biodiversity.
  • Stresses the importance of preserving such ecosystems for future generations amidst climate challenges.
• Identification of hidden : Local residents may have mistaken the colony for a rock due to its size and appearance, emphasizing the hidden richness of nature.

About Corals

• Nature and Structure: Corals are sessile animals permanently attached to the ocean floor, resembling colorful plants but are animals.
  • Composed of individual animals called polyps, which build hard, cup-shaped skeletons of calcium carbonate (limestone) using ions from seawater.
• Polyps’ Features:
  • Stomach with a Single Opening: Serves as both mouth and anus.
  • Tentacles: Used for defense, capturing prey, and clearing debris.
  • Functionality: Food enters through the mouth, waste is expelled from the same opening.
• Symbiotic Relationship with Zooxanthellae:
  • Zooxanthellae (Algae): Provides corals with food and nutrients via photosynthesis using sunlight.
    • Responsible for the vibrant colors of corals.
  • Corals: Offer algae shelter and nutrients.
  • This relationship makes corals highly dependent on favorable environmental conditions.

What is a Coral Reef?

• A coral reef is a diverse underwater ecosystem formed primarily by coral polyps, tiny marine animals that secrete a hard calcium carbonate skeleton.
• Over time, these skeletons accumulate, creating complex structures that support a wide variety of marine life.

Regions of Coral Reefs

Coral reefs thrive in warm (23°–29°Celsius), shallow waters with high levels of sunlight. They are predominantly found in tropical and subtropical regions. The most significant coral reef regions include:

• Indo-Pacific Region: This region encompasses the Coral Triangle (Indonesia, Malaysia, Philippines, Papua New Guinea, Timor-Leste, and Solomon Islands), the Great Barrier Reef in Australia, and other reefs in the Indian and Pacific Oceans.
• Caribbean Region: This region includes the Caribbean Sea, the Gulf of Mexico, and the Florida Keys.

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Types of Coral Reefs Found in India

Ecological Significance of Corals

• Habitat Provision: Coral reefs provide complex three-dimensional structures that serve as homes for a diverse array of marine organisms, including fish, invertebrates, and algae.
  • These intricate habitats offer shelter, breeding grounds, and foraging opportunities for many species.
• Biodiversity Hotspots: Coral reefs are renowned for their exceptional biodiversity, housing a quarter of all marine species.
  • This rich diversity contributes to the overall health and resilience of marine ecosystems.
• Nutrient Cycling: Corals and the associated organisms within reef ecosystems play a crucial role in nutrient cycling.
  • They help in the recycling of essential nutrients like nitrogen and phosphorus, which are vital for the growth of marine plants and animals.
• Oxygen Production: Corals, through their symbiotic relationship with photosynthetic algae, contribute to the production of oxygen in the ocean.
  • Although the exact percentage is difficult to quantify, coral reefs undoubtedly play a significant role in maintaining oxygen levels in marine environments.
• Carbon Sequestration: Coral reefs act as carbon sinks, absorbing and storing carbon dioxide from the atmosphere.
  • This process helps to mitigate the effects of climate change by reducing greenhouse gas concentrations.
• Coastal Protection: Coral reefs provide a natural barrier against waves, storms, and erosion, protecting coastlines and reducing the impact of natural disasters.

Climate change poses a severe threat to coral reefs

• Warming oceans: Rising sea temperatures trigger coral bleaching, leading to mass coral death.
• Ocean acidification: Increased CO2 absorption makes it harder for corals to build their calcium carbonate skeletons.
• Extreme weather events: More frequent and intense storms damage coral reefs.
• Sea level rise: Can smother shallow reefs and alter light conditions affecting photosynthesis.

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About Solomon Island Location: Situated in Melanesia, a subregion of Oceania in the southwestern Pacific Ocean east of Papua New Guinea. Geography: Comprises two parallel chains of volcanic islands and small coral atolls. Located in the southwestern Pacific Ocean, featuring diverse marine and terrestrial ecosystems. Climate: Tropical climate with generally warm and humid conditions. Rarely experiences extreme temperatures due to cooling winds from the surrounding seas.

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Prime Minister Inaugurated the First Bodo Mahotsav in New Delhi to celebrate the language, literature, and culture of the Bodo community.

Prime Minister’s Remarks at the Festival 

• He declared the North East, including Bodoland, as India’s Ashtalakshmi, a region of prosperity.
• He also emphasised mutual trust and efforts to integrate former conflict zones into the mainstream
• He also highlighted advancements in healthcare, including new medical colleges and hospitals in Assam.

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About Bodoland Festival

• The Bodoland Mahotsav is a cultural festival celebrating the language, literature, and culture of the Bodo community. 
• Objective of the Festival: To strengthen peace and unity within the Bodo community building a vibrant Bodo society.
• Theme: “Peace and Harmony for Prosperous Bharat.”
  • It marks the first festival of unity post the 2020 Bodo Peace Accord, which ended 50 years of conflict.
• Cultural Contributions: GI-tagged products like Dokhona, Gamsa, and Karai-Dakhini showcased.  
  • It will also help in promoting weaving and sericulture through the Bodoland Sericulture Mission.
• Tourism Boost: Focus on Manas National Park and other natural attractions for creating employment.
• Sessions & Themes to be discussed at the Festival:
  • “The Rich Bodo Culture, Tradition, and Literature Contributing Towards Indian Heritage.”
  • “Challenges and Opportunities of Mother Tongue Medium-of-Instruction Under NEP 2020.”
  • Discussions on cultural tourism and building a “Vibrant Bodoland.”
• Attendees: Over 5,000 cultural and linguistic enthusiasts from India, Nepal, Bhutan, and other nations.

About the Bodo Tribe

• Origin: The Bodos (or Boros) are an ethnolinguistic group from Assam.
• Geographical Spread: Primarily reside in the Bodoland Territorial Region (BTR) of Assam.
  • Also found in Bangladesh, Nepal, and other North-East Indian states.
• Scheduled Tribe (ST) Status: Recognized as “Boro” and “Borokachari” under The Constitution (Scheduled Tribes) Order, 1950.
• Language: Bodo language belongs to the Tibeto-Burman family. It is included in the 8th Schedule of the Indian Constitution, granting it official recognition.
• Governance in BTR: Administered by the Bodoland Territorial Council (BTC), established under the Sixth Schedule of the Indian Constitution.
• Bodo Peace Accord (2020): A landmark agreement between the Central Government, the Assam State Government, and various Bodo groups.
  • It ended decades of violence and conflict.
  • It also established a framework for peace, development, and integration of the region.
• Achievements in Bodoland (Post-Accord):
  • Development of infrastructure for education, health, and culture.
  • Rehabilitation of over 4,000 former cadres of the National Democratic Front of Bodoland.Over ₹700 crore spent on development projects, with ₹1500 crore special packages from the Central Government.

Sixth Schedule of Indian Constitution

• The Sixth Schedule of the Indian Constitution provides for the establishment of Autonomous District Councils (ADCs) in certain tribal areas.
• Article 244A: outlines the establishment of autonomous districts and councils within the states of Assam, Meghalaya, Tripura, and Mizoram.
• Article 244B: It defines the powers, functions, and composition of the ADC.
• Article 244C: It discusses the administrative, judicial, and financial powers of the ADC.
• It empowers tribal communities to govern themselves and protect their unique cultural identity.
• These ADCs are designed to safeguard the rights and cultural identity of tribal communities.

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Key Functions of ADCs

• Legislative Powers: ADCs have the authority to make laws on various matters such as land, forest, water resources, agriculture, and social customs.
• Executive Powers: They execute development schemes, welfare programs, and administer local governance.
• Judicial Powers: ADCs can establish local courts to resolve disputes based on customary laws and usages.
• Financial Powers: ADCs have financial autonomy, enabling them to collect taxes and manage their own finances.
• Cultural Preservation: They promote and preserve the cultural heritage of tribal communities.
• Development: ADCs play a crucial role in the socio-economic development of their respective regions.

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Kerala High Court`s strict elephant guidelines threaten Thrissur Pooram, as Temple authorities fear that key rituals cannot be performed under the new rules.

Key Highlights of the Kerala High Court Guidelines on Elephant Use in Festivals

• Regulation of Parade Duration: Elephants should not be paraded for more than three hours at a time.
• Mandatory Rest Periods: Elephants must have a minimum of three days’ rest between two exhibitions.
• Space Requirements: Adequate space must be available for parading elephants, with specific spacing guidelines (e.g., eight meters between two elephants).
• Temporary Tethering Facility: The facility must be clean and spacious to ensure the comfort of elephants.
• Restricted Parade Times: Parading of elephants on public roads during daytime is prohibited.
• Compliance with Existing Rules: The state must strictly enforce the Kerala Captive Elephants (Management and Maintenance) Rules, 2012.
• Reference to SC Judgment: Guidelines align with the Supreme Court’s decision in the Wildlife Rescue and Rehabilitation Centre case.
• Non-Mandatory in Religion: The court observed that no religion mandates the use of elephants in festivals but focused on regulating their usage rather than banning it.

Concerns Raised by Temple and Festival Organizers

• Impact on Tradition: Organisers argue that the spacing guidelines and limits on the number of elephants will disrupt traditional attractions like madathil varavu and elanjithara melam, which heavily rely on large elephant parades.
• Venue Restrictions: Organizers fear the need to relocate festivals to larger grounds, which may compromise the essence of these events.
• Cultural Significance: Temple boards claim that such restrictions threaten the cultural heritage and unique identity of festivals like Thrissur Pooram.
• Resistance to Change: Concerns over NGOs allegedly aiming to disrupt traditional festivals and religious practices.
• State Government’s Stand: The Kerala government has expressed intent to review the guidelines and possibly file an appeal to ensure festivals can continue traditionally.

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About Thrissur Pooram Festival

• Thrissur Pooram is an annual Hindu temple festival held in Thrissur, Kerala
• Date: Occurs on the day when the star sign “Pooram” aligns in the Malayalam month of “Medam” (April-May).
• Purpose: A grand festival where ten temples in and around Thrissur come together to pay homage to Lord Shiva at the Vadakkunnathan Temple.
• Significance: Known as the Mother of All Poorams, Thrissur Pooram is a cultural and religious highlight that surpasses all other festivals in grandeur and tradition.
• Origin: Initiated by Raja Rama Varma, famously known as Sakthan Thampuran, the Maharaja of Cochin (1790–1805).
  • Designed to ensure the participation of 10 temples in and around Thrissur.
• Key Highlights Of the Festival
  • Elephant Parades: Adorned elephants with traditional nettipattam (golden headgear) are a major attraction.
  • Fireworks Display: A spectacular pyrotechnic show is a hallmark of the festival.
  • Melam (Percussion Ensemble): Traditional musical performances like ilanjithara melam add vibrancy to the event.
• Final Day: The seventh day marks the conclusion of the festival and is referred to as “Pakal Pooram” (Day Pooram).
• Significance of Thrissur Pooram: It exemplifies the cultural and spiritual essence of Kerala, blending religious devotion, art, and tradition on an unmatched scale.

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MATES is a new initiative by the Australian government to provide young Indian university graduates and early career professionals an opportunity to live and work in Australia for two years.

About MATES Scheme

• Establishment: The scheme was introduced as part of the Migration and Mobility Partnership Arrangement (MMPA), signed on May 23, 2023, between Australia and India.
• Purpose: The MMPA aims to facilitate two-way migration and address issues like illegal and irregular migration.

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Eligibility Criteria for MATES Scheme

• Age Limit: Be 30 years or younger at the time of application.
• First-Time Participants: Have not previously participated in the scheme.
• Educational Background: Hold a Bachelor’s degree or higher in one of these fields:
  • Renewable Energy
  • MiningEngineering

• • ICT
  • Artificial Intelligence
  • FinTech
  • AgriTech
• Graduation Timeline: Graduated within two years from an eligible educational institution.
• Language Proficiency: Demonstrate proficient English skills (IELTS score of 6 overall, with a minimum of 5 in each module or equivalent).
• Top Universities: Graduates from India’s top 100 universities (as per NIRF rankings 2024) are eligible.

Key Features of MATES Scheme

• No Employer Sponsorship: Applicants do not need an Australian employer to sponsor them.
• Visa Duration: Stay of up to two years with multiple entry permissions.
• Dependents Allowed: Participants can bring their spouses and dependent children, who will have work rights. Dependents are excluded from the 3,000 annual cap for primary applicants.
• Ballot System: Applicants must pay an AUD 25 ballot fee to participate.
• • Selected candidates through the ballot proceed with formalities for visa application.
• Pilot Program: Limited to 3,000 places annually for primary applicants.

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Advantages of the Scheme

• MATES is a promising initiative for young Indian professionals to build global careers while contributing to Australia’s skilled workforce sectors.
• Flexible work opportunities, not limited to the nominated field of study.
• Opportunity to apply for other visas for an extended stay or permanent residence, subject to eligibility.
• Visa holders have 12 months to enter Australia post-approval.

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Sagarmanthan: The Great Oceans Dialogue

Context: India is set to host its first-ever global maritime conference, Sagarmanthan: The Great Oceans Dialogue, on November 18-19, 2024, in New Delhi.

More on the news

• The event is co-hosted by the Ministry of Ports, Shipping and Waterways and the Observer Research Foundation (ORF).
• Participation and Scope
• • Representatives from 60-65 countries are expected to attend the conference.

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Objectives of the Conference

• Strengthening Maritime Presence:
  • Despite being the world’s most populous country and one of the largest economies, India’s maritime clout has been relatively limited.
  • The conference seeks to highlight India’s ambition to expand its role in global maritime trade and merchant shipping.
• Focus on Maritime Trade and Governance:
  • Discussions will emphasize India’s growing importance in international collaborations related to trade, connectivity, and maritime governance.
  • The dialogue aims to deepen engagement with global stakeholders and inform them about India’s ambitions and interests in the maritime sector.
• Key Benefits
• • Enhanced collaboration with international policymakers and stakeholders in the maritime sector.
  • Increased global attention on India’s role and potential in maritime trade and governance.
  • A platform to steer discussions on pressing global issues related to maritime affairs.

Significance of India’s Growth and Maritime Role

• India contributed 16% of global economic growth in 2023.
• The country is projected to become the third-largest global economy within the next three years.
• With this growth, India’s maritime domain has become critical for commerce, trade, and international cooperation.

Know Your Medicine App

Context: The Union Minister for Youth Affairs & Sports has launched a nationwide appeal to embrace the National Anti-Doping Agency (NADA) India’s ‘Know Your Medicine (KYM)’ app.

About KYM

• The KYM app is part of NADA India’s broader mission to raise anti-doping awareness and education, equipping athletes with essential information to stay clean. 

Key Features of the KYM App

• Anti-Doping Verification Tool: Allows athletes and sports professionals to check if a medicine or its ingredients contain substances prohibited by the World Anti-Doping Agency (WADA).
• User-Friendly Search Options: Provides image and audio search capabilities for quick and convenient access to information.
• Sport-Specific Information: Enables users to select their sport category to access tailored information relevant to their specific sporting needs.
• Promoting Clean Sports: Empowers athletes to avoid inadvertent doping, supporting integrity and fair play in sports.
• Accessible and Informative: Designed to be easy to use, offering seamless verification and making anti-doping education accessible to all stakeholders in the sporting community.

About National Anti-Doping Agency (NADA)

• Set Up as a  registered society under the Societies Registration Act of 1860 in 2005.
• Mandate: To create dope-free sports in India by promoting fair play and ethical practices in sports.
• Functions: Planning, implementing, and coordinating anti-doping activities in India.
  • Ensures compliance with the World Anti-Doping Agency (WADA) code and regulations.
• Nodal Ministry: Ministry of Youth Affairs & Sports, Government of India.

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National Anti-Doping Act, 2022

• Provides legal backing to NADA for regulating anti-doping activities in sports.
• Implements the UNESCO International Convention against Doping in Sports, reinforcing India’s commitment to international standards.

Student Direct Stream (SDS) program

Context: Recently. Canada has announced the discontinuation of the Student Direct Stream (SDS) visa program, effective November 2024. 

More on the news

• This decision affects numerous Indian students who rely on the SDS pathway for streamlined visa processing and affordable access to Canadian educational institutions, prompting concerns about longer processing times and increased costs.

Introduction to the SDS Visa Program

• The Student Direct Stream (SDS) is a visa processing program launched by Canada in 2018.
• It aims to provide faster processing of study permits for students from specific countries, including India.
• Key Features of SDS
  • Fast-Track Processing: SDS offers expedited visa processing with an average processing time of around 20 days.
  • Simplified Application:
    • Applicants need to provide proof of financial stability, such as a Guaranteed Investment Certificate (GIC).
    • Submission of essential educational documents is mandatory to streamline the process.
  • Eligibility Criteria: The program is available to students from 14 countries, including India, China, Pakistan, Vietnam, and Trinidad and Tobago.
• Popularity Among Indian Students
  • SDS has been highly preferred by Indian students due to its faster approval times and straightforward application process.

Reasons Behind the Discontinuation

• System Misuse: Some applicants used the SDS pathway for low-value diploma courses to seek permanent residency, undermining the program’s purpose.
• Integrity and Protection: Canada aims to protect genuine students and ensure fair access to the program.
• Strain on Resources: Overcrowding in major cities like Toronto and Vancouver led to pressure on housing and public services.
• Reduction in International Student Numbers: In 2024, Canada reduced student permits by 8%, with plans for a further 10% reduction to manage the inflow of students.

Implications for Indian Students

• Extended Processing Times: Visa approvals may take longer, delaying academic plans for Indian students.
• Increased Costs: Standard visa applications have higher fees, posing financial challenges.
• Complex Application Process: More detailed documentation, including proof of funds and study plans, increases the chances of errors and delays.
• Disruption to Academic Goals: Delayed approvals may force students to defer admissions or consider other countries.
• Uncertainty in Immigration Pathways: The SDS visa was often a pathway to permanent residency, now making immigration plans more difficult.

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Inauguration of First Trilateral Power Transaction

Context: India, Nepal, Bangladesh launch first trilateral power flow transaction from Nepal to Bangladesh via India.

Key Highlights of the Transaction

• Transmission Capacity : Power export of up to 40 MW from Nepal to Bangladesh through India.
• Facilitated by: the Tripartite Power Sales Agreement signed on October 3, 2024, in Kathmandu.
• Parties Involved: Agreement among NTPC Vidyut Vyapar Nigam (India), Nepal Electricity Authority, and Bangladesh Power Development Board.
• Impact: It strengthens sub-regional energy cooperation and economic inter-linkages.
  • Enhances power connectivity and supports mutual economic benefits for Nepal, India, and Bangladesh.
• India’s Role: To facilitate cross-border supply using an Indian transmission line.

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