Context:

• The Ministry of Electronics and Information Technology (Meity) will develop a platform on which users can notify about IT rule violations by social media platforms. 

Zero tolerance for violation of IT Rules:

• Assistance to Citizens: The government will assist citizens in filing FIRs against social media platforms for violation of IT rules if they are aggrieved from objectionable content like deep fakes.
• As per the IT rules, social media platforms have been given seven days’ time to align their terms of use. If the intermediary discloses the details of where the content originated, then the FIR will be filed against the entity that posted the content.

The Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules):

• Due Diligence: It specifies due diligence requirements for intermediaries to claim exemption from being liable for any third-party information.  
• Framework for Regulation: It also provides a framework for regulating the content of online publishers of news and current affairs, and curated audio-visual content.  
• The 2022 Amendments require intermediaries to make reasonable efforts to cause users to not create, upload, or share prohibited content and amend the grievance redressal mechanism.
• Obligations of Intermediaries: The IT Rules require intermediaries to publish rules and regulations, privacy policies, and user agreements for access or usage of its services.  
  • These details should be made available in English or any language specified in the Eighth Schedule of the Constitution.  
  • Under the IT Rules users are prohibited from creating, uploading, or sharing content that threatens the unity of India or public order, is pornographic, violates copyright or patent, or contains software virus Intermediaries must inform users about these restrictions.  
  • The intermediaries must: 
    • Ensure compliance with rules and regulations, privacy policy, and user agreement.
    • Make reasonable efforts to cause users to not create, upload, or share prohibited content, and 
    • Respect citizens’ rights under the Constitution of India including Articles 14, 19, and 21.
• Appeal mechanism against decisions of grievance officers: The IT Rules require intermediaries to designate a grievance officer to address complaints regarding violations of the Rules. 
• Grievance Appellate Committee(s): The central government  will  appoint Grievance Appellate Committee(s) to hear appeals against the decisions of grievance officers.  
  • Such appeals may be made within 30 days of the grievance officer’s decision and should be decided within 30 days.  
• Expeditious removal of prohibited content: Intermediaries must  acknowledge complaints regarding violation of Rules within 24 hours, and dispose of complaints within 15 days.   
  • The complaints regarding the removal of specified prohibited content must be addressed within 72 hours.
• The 2023 Amendments add provisions to regulate fake information and online games.  The Ministry stated that the Amendments intend to prevent user harm caused by playing online games.
  • Intermediary obligations for online games and fake news: All intermediaries must make reasonable efforts to ensure that users do not host an illegal online game or publish any information that is identified as false or fake by the fact-checking unit of the Press Information Bureau (PIB) or any centrally authorised agency.

Also Read: IT Act and Social Media Leaks, Further Reading: Deepfake Technology

News Source: The Hindu

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Context:

• A Recent study in the Journal Nature Communications found that Extreme weather events like Tropical Cyclones have long-term economic impacts.

Key Findings of Study:

• Global social cost of carbon: Globally, the long-term impacts of tropical cyclones raise the global social cost of carbon by more than 20 percent.
• Annual economic loss: Tropical cyclones affect an average of 20.4 million people annually and cause a mean direct annual economic loss of $51.5 billion over the last decade.
  • The study estimates India’s long-term economic damages from tropical cyclones to range from $43-47 per tonne of carbon dioxide.
• Social costs to India: India’s social costs represent 11.3% of global median economic damages from tropical cyclones.
• Relation between Climate change and Growth: The growth losses from tropical cyclones robustly increased with global mean temperature for 37 out of the 41 evaluated countries.
  • Damages from tropical cyclones could drive up the country-level social costs of China, the US, and India by 68%, 53%, and 9%, respectively.
• Relation between Damages and Development level: Economic damages from tropical cyclones do not depend on a country’s development level, with a slump in growth recorded across all four income groups.
  • The share of losses for high-income countries was 91 percent, upper-middle-income countries (85 percent), lower-middle-income countries (93 percent), and low-income countries (100 percent).
• Incomplete Picture: The researchers argue that current policies do not fully consider the long-term economic impacts of extreme weather events, leading to an underestimation of the social cost of carbon.

Study’s Call to Action:

• Improve Cost Estimation Methods: The study emphasizes the need to quantify the overall costs of extreme events better to inform societies about the actual costs of climate change.
• Policy Based on Long-term Impacts: By understanding the long-term economic impacts of tropical cyclones, policymakers can make more informed decisions about climate mitigation and adaptation strategies.

Also Read: Cyclone Midhili

Source: Down to Earth

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Context:

• NASA’s Psyche spacecraft fired a communication laser to Earth from about 16 million kilometres away, demonstrating an important technology DSOC (Deep Space Optical Communications) that could define the future of communication in space.

NASA’s Psyche Mission fires lasers at Earth

• High-bandwidth optical communications: The Psyche Spacecraft is the first to carry a DSOC transceiver and will test high-bandwidth optical communications to Earth.

• Lunar Laser Communications: In 2013, NASA’s Lunar Laser Communications Demonstration tested record-breaking uplink and downlink data rates between Earth and the Moon using similar technology.
• Communications into Deep space: DSOC, however, is taking optical communications into deep space, paving the way for high-bandwidth communications far beyond the Moon and over 1,000 times farther than any optical communications test.

How has Space Communication done?

• Like wireless communications on Earth, spacecraft encode data on various bands of electromagnetic frequencies. 
• Use of Radio Wave: Currently, most space communication uses radio waves with the highest wavelengths but lowest frequencies in the electromagnetic spectrum.
• Radio waves are more widely used for space communication because of their desirable propagation properties and large wavelength compared to other electromagnetic waves.
• Properties of Radio Wave: the ability to pass through the atmosphere regardless of weather, pass through foliage and most building materials, and bend around obstructions.

Challenges in Space communication?

• Problem of Data Rates: Communicating with spacecraft far away from Earth is problematic due to high data rates.
• Scattering of Shorter Wavelengths: The shorter wavelengths (range of frequencies) carry more data per second but tend to scatter when in contact with any interference.

NASA’s Revolutionary New Technology: 

• The DSOC is a new laser communication technology that encodes data in photons at near-infrared wavelengths  to communicate between a probe in deep space and Earth. 
• This allows the spacecraft to communicate more data in a given amount of time.
  • DSOC will allow data rates at least ten times higher than radio telecommunications systems of comparable size and power.
• Benefits: DSOC can send scientific information, high-definition imagery, and streaming video to support humanity’s next giant leap: sending humans to Mars.
• Challenges: 
  • Extremely Precise Pointing: The flight laser transceiver and ground-based laser transmitter must point precisely. 
  • Reaching their targets like hitting a dime from a mile away while the dime is moving (A dime, or coin, that is less than 2 cm in diameter).

Source: Indian Express

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Context:

• Recently, The UK drug regulator approved a gene therapy (Casgevy therapy) to cure sickle cell disease and thalassemia, a landmark breakthrough.

What is Casgevy Therapy?

• This is the first licensed therapy in the world based on gene editing technology CRISPR-Cas9.
• It  is a one-time therapy that edits the faulty gene that leads to these blood disorders, potentially curing the person for life.

How does the therapy work?

• Errors in the hemoglobin gene cause both sickle cell disease and thalassemia.
• The therapy uses the patient’s own blood stem cells, which are precisely edited using Crispr-Cas9. 
• The therapy targets a gene called BCL11A, which is crucial for switching from fetal to adult hemoglobin.
• The therapy uses the body’s mechanisms to produce more foetal hemoglobin, alleviating the symptoms of the two conditions.

How is the therapy prepared and given?

• Apheresis:  The first step is extracting blood stem cells from the bone marrow and filtering the blood for different components. 
• Harvesting and Editing: The cells are then sent to the manufacturing site, which takes about six months to be edited and tested.
• Conditioning: Before a transplant with the edited cells, the doctor gives a conditioning medicine for a few days to clear the bone marrow of other cells that will be replaced by the modified cells.
• Transplantation: The patient has to stay in the hospital for at least a month so that the edited cells reside in the bone marrow and start making red blood cells with normal haemoglobin.
• Side effects: similar to those associated with autologous stem cell transplants, including nausea, fatigue, fever, and increased risk of infection.

What are the challenges of this treatment?

• High Cost of Treatment:  a high proportion of people with these conditions live in poorer countries and are unlikely to be able to afford the therapy 
  • Estimates suggest it could be as much as $2 million per patient, which aligns with other gene therapies. 
• Absence of Local Manufacturing Facilities: The harvested blood stem cells must be sent across countries.
• Earlier Treatment: Permanent treatment has been a bone marrow transplant.
  • Donor rejection is the major challenge.

About sickle cell disease:

• Genetic Disorder: The genetic error in sickle cell disease leads to red blood cells assuming a crescent shape. (See image) 
• Unlike the disc-shaped normal cells, the sickle-like cells cannot move around easily in the vessels, resulting in blocked blood flow. 
• Effects: severe pain, life-threatening infections, anemia, or a stroke.
• Prelevance in India: An estimated 30,000-40,000 children in India are born with the disorder every year.
• Symptoms: The symptoms manifest in people who inherit a pair of damaged genes from both parents. Those who carry only one copy of the gene from one parent can lead a normal life.

About Thalassaemia: 

• Thalassemia is an inherited (i.e., passed from parents to children through genes) blood disorder caused when the body doesn’t make enough of a protein called haemoglobin.
• Thalassaemia leads to low levels of haemoglobin and shows symptoms like fatigue, nausea, shortness of breath, and irregular heartbeats. 
• People with the condition need blood transfusions throughout their life. The transfusions also lead to excess iron accumulation in the body, which needs chelation.
• India also has the largest number of children with thalassaemia major in the world about 1-1.5 lakh.

Source: Indian Express

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Context:

• Recently, India and the European Union signed a Memorandum of Understanding (MoU) on semiconductors to help build a “robust supply chain” and support innovation.

Key Highlights on India EU Semiconductor Pact 

• Memoranda of Understanding: The MoU was signed at the second India-EU Trade and Technology Council (TTC) meeting held virtually for deepening cooperation on the semiconductors ecosystem.
• This agreement requires India and the EU to share semiconductor ecosystem experiences, best practices, and information and establish research, development, and innovation collaborations between universities, research organisations, and enterprises.
• Review of Progress: The TTC also examined the council’s working groups’ progress in high-performance computing, digital public infrastructure, EV batteries and recycling, waste to energy, resilient supply chains, and FDI screening.

Potential Benefits of the India EU Semiconductor Pact: 

• Strategic Commodity: Semiconductors are at the center of the digital economy. Its contribution to innovation, productivity, and economic growth in the past four decades has been extensive.
• Supply Chain Diversification: In the post-COVID period, diversifying away from China-dominant supply chains has gained momentum due to geo-strategic and geo-political concerns.
• Strategic and Commercial Alignment: The agreement will help India align more with the EU and the U.S. on the semiconductor industry’s future. Both sides will also identify areas for mutually beneficial collaboration in research, development, and innovation in semiconductor technologies, including advanced packaging technologies, design, and raw materials.

• Exchange of information: It  will involve information on trade barriers, disruptions, and their potential impact on the semiconductor value chain and explore measures to mitigate their impact.
• Development of a High-skilled workforce: It will foster skills, “talent, and workforce development for the semiconductor industry.
• Level Playing Field: The agreement will “ensure a level playing field in the sector by sharing information on granted public subsidies.
• Encourage industry and stakeholder engagement: It will facilitate collaboration between Indian and EU stakeholders towards direct investments, joint ventures, and technology partnerships including manufacturing facilities.

Further Reading: Semiconductor Manufacturing, India’s First Semiconductor Memory Chip

Source: Financial Express

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Context:

• The Central government has added the Computer Emergency Response Team (CERT-In) among a list of organizations that are exempted from the ambit of the Right to Information Act (RTI), 2005.

ERT-In exempted from the purview of RTI Act

• The  Sub-section (2) of Section 24 of the RTI Act empowers the central government to exempt any organization from the purview of the transparency law.

• • Using those powers, the Centre has included CERT-In at serial number 27 in the Second Schedule of the RTI Act.

What is CERT-In?

• CERT-In is a functional organization of the Ministry of Electronics and Information Technology that secures Indian cyberspace.
• It provides Incident Prevention and Response services and Security Quality Management Services.

Vision: Proactive Contribution in Securing India’s Cyberspace.

Mission: To enhance the security of India’s Communications and Information Infrastructure through proactive action and effective collaboration.

Objectives of CERT-In

• Preventing cyber attacks against the country’s cyberspace.
• Responding to cyber attacks, minimizing damage and recovery time and Reducing ‘national vulnerability to cyber attacks
• Enhancing security awareness among ordinary citizens.

Functions: The Information Technology (Amendment) Act 2008, designated CERT-In to serve as the national agency to perform the following functions in the area of cyber security:

• Collection, analysis and dissemination of information on cyber incidents.
• Forecast and alerts of cyber security incidents.
• Emergency measures for handling cyber security incidents.
• Coordination of cyber incident response activities.
• Issue guidelines, advisories, vulnerability notes and whitepapers relating to Information 
• Security practices, procedures, prevention, response and reporting of cyber incidents.
• Such other functions relating to cyber security as may be prescribed.

Salient provisions of the RTI Act, 2005: 

• Timely Disclosure of Information: The RTI Act provides timely information disclosure to citizens by Union and State Public Authorities. 
• Accountability & Transparency: It seeks to empower citizens and promote accountability and transparency. 
• Disclosure of Various Aspects: Public Authorities must disclose various aspects of their structure and functioning under the Act. 
• This includes:
  • Disclosure of their organization
  • Functions and structure
  • Powers and duties of its officers and employees
  • Financial information
  • Procedure followed in the decision-making process, including channels of supervision and accountability, etc., among others. 
• Section 4 of the Act: It calls for proactive disclosure of information by all authorities so that the public has minimum resort to using this Act to obtain information. 
• Section 8 of the Act: It provides exceptions to the disclosure of information, on that basis sharing of information can be denied. 
• Exceptions under Section 8 of the RTI Act: The sharing of information can be denied if the disclosure of information can prejudicially affect: 
• • The sovereignty and integrity of India. 
  • Security, strategic, scientific, or economic interests of the State.
  • Relations with Foreign States. 
  • Lead to incitement of an offense. 
  • Information expressly forbidden to be published by any court of law the disclosure of which may constitute contempt of court. 
  • If the disclosure of information can cause a breach of privilege of Parliament or the State Legislature
  • Information, including trade secrets or intellectual property, the disclosure of which would harm the competitive position of a third party, unless the competent authority is satisfied that larger public interest warrants the disclosure of such information. 
  • Cabinet papers including records of deliberations of the Council of Ministers, Secretaries, and other officers. (Material based on which decision was taken shall be made public if not exempted). 
  • Personal information, unless it serves a larger public interest. 
• Section 8 (2): It provides for disclosure of information exempted under the Official Secrets Act, 1923 if a larger public interest is served.

Also Read: Right to Information Act-2005

Source: Indian Express

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Context:

• According to the Minister of Ports, Shipping and Waterways, a bulk cargo transshipment hub can be developed in Atlanta Bay near Diglipur in the Andaman and Nicobar (A&N) Islands. 

Bulk Cargo Transshipment Hub to be Developed in Atlanta

• The Atlanta Bay: It is just 50m away from the sea and there is availability of Natural break and is well connected by road.
• Galathea Bay Project: The hub is part of the Galathea bay project, worth Rs 44,000 crore.
  • International Container Transhipment Port (ICTP): It is a Sagarmala Project being developed at Galathea Bay.
• Strategic Location: Situated in the northern side of A&N Islands, a harbour is essential to promote high-end tourism and other essential purposes.
  • It is situated at around 80 km from the Coco Islands (the Chinese defence base).
• Significance: Once operationalized, the Port will be economically beneficial for India and its neighbours.
  • The proposed port is 565 km from Yangoon (Myanmar), 1,000 km from Chittagong (Bangladesh). 
  • The route connects East India to South East Asia, Australia, New Zealand and other regions.
• Indira Point: There are plans to develop the southernmost tip of India as a major tourism destination.
• Other Projects: There are around 58 projects worth ₹7,622 crore in A&N which are being monitored under Sagarmala programme and 15 projects worth ₹469 crore funded under Sagarmala and Centrally Sponsored Scheme (CSS). 

About Andaman and Nicobar (A&N) Islands:

• Union Territory: It consists of two groups of islands on the southeastern edge of the Bay of Bengal.

• Andaman Islands: The Andamans extend north-south and include more than 300 islands. The major islands are North Andaman, Middle Andaman, and  Lower(South) Andaman with Little Andaman, to the south.
• Nicobar Islands: The Nicobar group includes the islands of Car Nicobar (north), Camorta (Kamorta) Nancowry (central group), and Great Nicobar (south).

Further Reading: International Transhipment Port project at Great Nicobar Island. 

News Source: TH

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Context:

• Recently, the Central  government initiated the  process of setting up a committee that will look into the issue of sub-categorisation of the Madiga community within the Scheduled Castes.

About Madiga Community

• Madigas are listed in the scheduled castes ,  traditionally they were leather workers.
• Location: Madigas are found primarily in the southern Indian states of Telangana, Andhra Pradesh, Karnataka, and Tamil Nadu but they also live in other parts of India. 
• Population: According to the 2011 census, the total Madiga population is around 67,02,609 persons. 
  • According to 2011 census, the Madiga community constitutes at least 50% of the total Scheduled Castes in Telangana.

For Further Reading: Sub-Categorisation of Scheduled Caste

News Source: TH

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Context:

• Recently, the Securities and Exchange Board of India (SEBI) proposed relaxations to enable company insiders to trade in securities, who are in possession of unpublished price-sensitive information.

SEBI Proposes Easing Trading Plans for Company Insiders

Facilitating Adoption of Trading Plans: It recommended reducing the minimum cooling-off period between the disclosure and implementation of the trading plan from six months to four months.

• Doing Away with the Blackout Period:  A blackout period is a time when certain people are prevented from buying or selling shares in their company. 
• Reducing the Minimum Coverage Period: SEBI has proposed reducing the minimum coverage period requirement to two months from twelve months.
• Personal Details Disclosure: The insider should make separate filings for the stock exchange (with personal details) and for the public (without personal details).
• Other Recommendations: 
  • Increase flexibility during trading plan formulation. 
  • Include disclosure of the trading plans to stock exchanges to be done in two days from the date of approval.
  • Applicability of contra-trade provisions on trades executed under the trading plan

What is Insider Trading?

• Insider Trading: It involves trading in a public company’s stock or other securities by someone with non-public, material information about the company. 
• Insider: She/He is a person who is a part of the company whose stocks they are trading. 
  • They may or may not possess confidential non-public knowledge regarding the firm.
• Non-Public Material Information: An information that could substantially impact an investor’s decision to buy or sell a security that has not been made available to the public.
• Preventing Insider Trading: To promote fair trading, SEBI has prohibited the firms to purchase their own shares from the secondary market.

News Source: Indian Express

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Context:

• Indian pharmaceutical firms have initiated the production of medications for 4 rare diseases, significantly reducing costs of drugs. 

Made in India Drugs for Rare Diseases

• Medications: The manufacturing started for at least four conditions including Tyrosinemia Type 1, Gaucher’s Disease, Wilson’s Disease, and Dravet-Lennox Gastaut Syndrome. They  are likely to become available in early 2024.
  • At present, medicines are available at the centres of excellence for rare diseases. 
  • Government is looking at the feasibility of making it available at Jan Aushadhi stores. 
• PLI Scheme: The government is working on a production-linked incentive (PLI) scheme for these medicines and is also promoting research on indigenous therapies for these conditions.
• Other Medications: Government also urged the industry to produce an oral solution for hydroxyurea. 
  • It is needed for the treatment of children up to the age of 5 years suffering from sickle cell disease.

What is the Rare Disease?

• World Health Organisation (WHO) defines rare disease as a  lifelong disease or disorder with a prevalence of 1 or less, per 1000 population. 
• Common Rare Diseases: They include Haemophilia, Thalassemia, Sickle-cell Anaemia and Primary Immuno Deficiency in children, auto-immune diseases, Hirschsprung disease, and certain forms of muscular dystrophies.
• Rare Disease in India: Around 6% to 8% of the Indian population is estimated to have a rare disease.
• Rare Disease Policy: Ministry of Health and Family Welfare has formulated a National Policy for Treatment of Rare Diseases (NPTRD) in July, 2017. 
  • The policy aims at lowering the incidence and prevalence of rare diseases based on an integrated and comprehensive preventive strategy.

News Source: Indian Express

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Context:

• Lachit Divas honors the military brilliance and leadership of Lachit Borphukan celebrated every year on November 24th

Background of Ahom Kingdom 

• Spread: The Ahom kings ruled large parts of present-day Assam, spread across the Brahmaputra valley from the early 13th century to the early 19th century. 
• Conflict with Mughals: The Ahoms engaged in a series of conflicts with the Mughals from 1615-1682, starting from the reign of Jahangir till the reign of Aurangzeb. 
• Mughal Victory: One of the major early military conflicts was in 1662, where the Mughals conquered parts of Assam and briefly occupied Garhgaon, the Ahom capital.
• Counter-Offensive: Started under Ahom King Swargadeo Chakradhwaja Singha. 
  • After Ahom’s initial victories, Aurangzeb sent Raja Ram Singh I of Jaipur in 1669, resulting in the Battle of Saraighat in 1671.
  • Battle of Saraighat: It was fought between the Ahom King Swargadeo Chakradhwaja Singha and Raja Ram Singh I.

About Lachit Borphukan

• He was the legendary Assamese general and folk hero who led his troops to victory in the Battle of Saraighat in 1671 and died a year after from an illness. 
• Role of Lachit Borphukan: He was a military commander who was chosen as one of the five councillors of the Ahom kingdom by king Chakradhwaja Singha, and given administrative, judicial, and military responsibilities.
  • He preferred guerrilla tactics which provided an edge to the smaller, but fast moving and capable forces. 

• Significance: His achievements stand as a symbol of defiance against external forces in the face of adversity. 
  • He has emerged as one of the most revered heroes in Assamese history, epitomising qualities of bravery, courage, and intelligence.

News Source: PIB

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Context:

• This article is based on the news  “Need for climate-smart agriculture in India” Which was published in the Hindu. Climate smart agriculture (CSA) offers a viable solution to the world’s current challenges of climate change and food insecurity.

Climate Change Impacts on Agriculture and Food Security

• Consequences of Climate Change: Heat waves, flash floods, droughts, and cyclones, are detrimentally impacting lives and livelihoods
  • Southern continents are facing severe droughts adversely affecting agricultural production and the well-being of farmers. 
• Increased demand for food: The increasing global population and shifts in dietary patterns further compound the demand for food. 
• Inefficacy of traditional farming practices: Environmental factors are increasing the challenges faced by traditional farming methods, rendering them less productive. 

What is Climate smart agriculture?

• According to the Food and Agriculture Organization, Climate smart agriculture  is an approach for transforming food and agriculture systems to support sustainable development and safeguard food security under climate change.

Pillars or objectives of Climate Smart Agriculture:

• Enhanced productivity: Sustainably increase agricultural productivity and incomes; 
• Resilience: Adapt and build resilience to climate change
• Reduced Emissions: Reduce/remove greenhouse gas emissions(GHG), where possible.” 

Also Read: State Of Food And Agriculture Report 2023

Climate Smart Agriculture Practices:

• Cultivating Climate-Resilient Crop Varieties
• Conservation Agriculture
• Agroforestry
• Water Management
• Integrated Pest Management
• Nutrient Management
• Livestock Management

Why World Climate Smart Agriculture needed?

• Agriculture as the backbone of Economy: It employs over 50% of the country’s workforce and contributes to about 17% of the GDP. 
• Climate change poses a significant threat to the sector’s sustainability creating the need for Climate smart agriculture.
• Adaptation and Mitigation to Climate Change: Addressing these dual challenges requires a comprehensive strategy, given the imperative to increase agricultural production by 60% by 2050 to meet the growing food demands.
• Substantial impact of climate change on crop productivity: Future climate change impacts on agricultural productivity could be significant.
  • India may face a crop yield decline of up to 9% between 2010 and 2039. 
  • To combat climate change and sustainably boost agricultural output and revenue, a radical reform of the agriculture industry is required. 

What are the advantages of Climate Smart Agriculture?

• Achieving SDGs: Climate smart agriculture aims to end hunger (Goal 2) and enhance environmental management aligned with the United Nations’ Sustainable Development Goals(SDG), through sustainable agricultural practices and rural development. 
• Mandate of NAPCC: The National Action Plan on Climate Change(NAPCC) underscores the importance of Climate smart agriculture as a key component of India’s adaptation strategies. 
• Achieving the goals of the Paris Agreement: Climate smart agriculture measures like agroforestry and carbon sequestration can help India meet its international climate goals.
  • The goal is to arrest  “the increase in the global average temperature to well below 2°C above pre-industrial levels” and pursue efforts “to limit the temperature increase to 1.5°C above pre-industrial levels.”
• Reducing GHG Emissions: The agricultural sector contributes to greenhouse gas (GHG) emissions, accounting for around 17% of such emissions in 2018. 
  • The implementation of Climate smart agriculture becomes pivotal in mitigating GHG emissions and preserving biodiversity.
  • The improved soil management practices associated with climate-smart agriculture can enhance soil organic carbon content by 0.3–0.6 percent annually contributing to better soil health and nutrient availability.
• Increasing agricultural  productivity: Climate smart agricultur promotes crop diversification, increases water efficiency, and integrates drought-resistant crops.
  • It can increase agricultural output while maintaining ecological stability.
• Biodiversity Conservation: Ecosystem-based approach of Climate smart agriculture coupled with diverse crop varieties, fosters coexistence between cultivated lands and natural habitats. 
  • This collaborative effort aids in preserving native plant species, maintaining stable pollinator populations and mitigating the impacts of habitat degradation.

What are the challenges associated with Climate Smart Agriculture?

• Creation of localized responses: It is challenging to generate local scientific knowledge to identify appropriate solutions to the region-specific agricultural challenges. 
  • India is divided into 15 agro-climatic regions based on parameters such as topography, soil, geographical formation, rainfall pattern, cropping system, irrigation, etc. 
  • Agro-climatic region-specific information is critical for understanding, evaluating, and addressing the challenge of climate change and its impact on agriculture in each region.
  • Uttar Pradesh organized the Conference of Panchayats (CoP) 2022 to enhance localized climate action in the state.
• Shortage of Agricultural Water Resources: It has become a rigid constraint on global food security and sustainable development of Climate smart agriculture. 
  • According to a study in the journal Earth’s Future, agricultural water scarcity is expected to increase in more than 80% of the world’s croplands by 2050.
• Challenges in adopting Climate smart agriculture technologies:  High input cost, lack of sufficient knowledge, lack of awareness about climate change issues, and lack of farmers-friendly Climate smart agriculture technologies are the major reasons behind this.
• Climate Variability and Climate Change: Climate variability and climate change have changed the distributions of light, heat, water, and other agricultural climate resources. 
  • This has a destructive impact on smallholder agriculture, reducing crop yield, income, and food insecurity.
• Agricultural GHG emissions:  It further expands challenges to the sustainable development of Climate smart agriculture.
  • Seven nations—Argentina, Australia, Brazil, Canada, Chile, China, India, and the United States—are estimated to be responsible for more than half of the world’s total soil emissions and 49% of the world’s total agricultural emissions.
• Information Resource Integration: Ensuring the security and standardization of agricultural information and data is crucial for the effective development of Climate smart agriculture.
  • However,  challenges such as low standardization, incomplete data collection, and the risk of misinformation pose significant obstacles to its long-term success.

Way Forward:

• Cooperative Or Community Farming: The smallholder farmers are extremely vulnerable to crop losses. 
  • Cooperative or community farming can be an apt solution for adopting Climate smart agriculture technology and practices to attain economies of scale.
  • According to the Agricultural Census 2015 by the Ministry of Agriculture & Farmers’ Welfare. The average size of operational holdings declined from 2.28 hectares in 1970-71 to 1.08 hectares in 2015-16.
• Application of Remote Sensing Techniques: Hyperspectral images help improve the identification and differentiation of crop nutrients, diseases, and canopy structures.
  • In addition, images, general reflectometry, and three-dimensional (3D) mapping of crop spectral dynamics provide insight into agricultural productivity. 
  • For example, the China Agriculture Remote Sensing Monitoring System can monitor crop growth, planting area, yield, and agricultural disaster information for staple crops in China.
  • Fertilizer and pesticide management in the field can be further enhanced by combining a wireless sensor network on the ground with a remotely operated aerial vehicle.
• Application of the Internet of Things (IoT): The IoT helps to collect data through different types of sensors, including environmental and crop parameters, such as temperature, humidity, pH value, leaf color, etc. 
  • The future development of the IoT for Climate smart agriculture needs to be strengthened in the following several aspects: 
    • IoT systems must have high adaptability and be customizable to local circumstances.
    • The network connection and farm infrastructure must be reliable.
    • The IoT sensor network must have a security strategy that is in sync with the cloud database.
• Application of Artificial Intelligence (AI): AI can improve crop yield by accurately forecasting the optimum sowing and harvesting date, and monitoring crop health.
  • It also decreases agricultural input costs, such as fertilizers, chemicals, and irrigation. 
  • Thus, agricultural risks can be minimized by solving problems, such as insufficient precipitation, weed growth, and disaster losses.
• Improvement of Cropping Patterns: Multiple cropping patterns, crop diversification practices, and no-till agriculture can increase agricultural productivity and reduce GHG emissions.
  • Suitable dryland crops need to be introduced to reduce the submergence period in the annual planting cycle. 
  • Combining inorganic fertilizers with organic improves soil quality and crop productivity, especially for soils with low fertility. 
  • For example, biochar as a soil additive has great potential in fixing carbon, repairing soil, and improving soil quality and crop productivity
  • Direct seeding of Rice (DSR) should be promoted wherein rice seeds are sown directly into the field, as opposed to the traditional method of growing seedlings in a nursery, then transplanting into flooded fields.. 
• Soil Conservation: Techniques to reduce CO2 emissions are recommended, such as using crop residues, improving nitrogen utilization efficiency, and reducing planting.
  • Applying crop residues can increase soil organic carbon (SOC), enhancing crop yield.
  • SOC represents the amount of carbon retained in the soil after the decomposition of the organic content. 
• Awareness creation among farmers: There is a need for awareness among farmers and other stakeholders about the impact of climate change and the need for undertaking mitigation and adaptation activities, which can be incentivised through the GCP. 
  • Green Credit Program (GCP) is an innovative market-based mechanism incentivizing voluntary environmental actions across diverse sectors.
• Agricultural Weather Index-Based Insurance: It applies the concept of financial instruments to the risk management of natural disasters, and attracts social funds to participate in the dispersion of agricultural natural risks.
  • It is simple to settle claims and promote, overcoming traditional insurance’s adverse selection and moral hazard, and reducing operating costs.
  • Crop insurance programs like Pradhan Mantri Fasal Bima Yojana (PMFBY) and Integrated Agrometeorological Advisory Service (IAAS) have helped farmers maximize income from crop production by assisting them in coping with current, short-term climate-induced risk.

Conclusion:

Climate Smart Agriculture is crucial for India, offering a sustainable solution to the threats of climate change and food shortages through innovative practices and government initiatives.

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Context:

• This article is based on the news  “RBI supersedes board of Abhyudaya Cooperative Bank for a year, cites poor governance” Which was published in the Indian Express. Recently, the Reserve Bank of India (RBI) took over the board of Mumbai-based Abhyudaya Cooperative Bank Ltd for a year due to poor governance standards. 

Financial Stability Issues in Urban Cooperative Banks

• The RBI has appointed the former chief general manager of the State Bank of India, as the administrator to oversee the affairs of the urban cooperative bank for the next 12 months. 
• According to the RBI,  the action was necessary because of concerns arising from observed poor governance standards in the bank. 
• Financial Performance:
• • The bank’s profit declined sharply by 78% to Rs 3.54 crore in the fiscal year ending March 31, 2021, compared to Rs 16.22 crore in the previous fiscal year.
  • Deposits stood at Rs 10,952.44 crore as of March 2021, showing a modest increase from Rs 10,838.07 crore in March 2020.

What are the Cooperative Banks?

• Cooperative banks are financial institutions that are owned and controlled by their members, who are also customers of the bank.
• It is an institution established cooperatively to deal with the ordinary banking business. 
• Cooperative banks are founded by collecting funds through shares, accepting deposits, and granting loans.
• They are registered under the Cooperative Societies Act of the State concerned or the Multi-State Cooperative Societies Act, of 2002.
• They are governed under:
  • Banking Regulations Act, 1949
  • Banking Laws (Co-operative Societies) Act, 1955
• They are broadly divided into Urban and Rural cooperative banks (Refer Image)

Also Read: Banking Sector of India

What are the characteristics of Cooperative Banks?

• Ownership: Cooperative banks are owned by their members, who are also the shareholders of the bank.
• Control: Cooperative banks are controlled by their members, who elect the board of directors and participate in the decision-making process of the bank.
• Profits: The profits of cooperative banks are distributed among the members in the form of dividends.
• Services: Cooperative banks offer a range of banking and financial services to their members, including savings accounts, loans, and insurance.
• Community focus: Cooperative banks often strongly focus on serving their local communities’ needs and promoting economic development.
• Ethical values: Cooperative banks are guided by the cooperative principles of democracy, equality, and solidarity, and they aim to operate ethically and sustainably.

What are the Urban Cooperative Banks (UCBs)?

• Urban cooperative banks (UCBs) are financial institutions that are organized and operated cooperatively in urban and semi-urban areas.

• In 2021, RBI appointed a committee(N S Vishwanathan Committee) that suggested a 4-tier structure for the Urban Cooperative Banks.
• • Tier 1 with deposits up to Rs 100 crore.
  • Tier 2 deposits between Rs 100 crore and Rs 1,000 crore,
  • Tier 3 with deposits between Rs 1,000 crore and Rs 10,000 crore, and
  • Tier 4 with deposits more than Rs 10,000 crore.
• Status of Urban Cooperative Banks:
  • Number and Presence: Currently, there are 1,514 Urban Cooperative Banks in India
  • Credit to Agriculture Contribution: Contributing 11% of the total credit to the sector.
  • Deposit Base: The total deposit base of Urban Cooperative Banks is at ₹5.26 trillion.
  • Sector Share: As of March 31, 2020, an estimated 94% of entities in the banking sector were UCBs, showcasing their prevalence.
  • Share in the Banking Sector: 3.24% of deposits and 2.69% of advances.
  • Financial Inclusion Impact: Urban Cooperative Banks cater to the financial needs of approximately 85.2 million depositors and 6.7 million borrowers.

What are the issues associated with Urban Cooperative Banks (UCBs)?

• Weak governance: Some Urban Cooperative Banks have been found to have weak governance structures and inadequate internal controls, which has led to financial mismanagement and fraud in some cases.
  • For instance, the ‘one-member, one-vote’ policy in cooperative banks may lead to governance challenges, potentially impacting decision-making processes.
  • Example: The collapse of Punjab and Maharashtra Cooperative Bank (PMC Bank) in 2019 was primarily attributed to fraudulent activities and financial irregularities. 
• Lack of Professional Management: Many Urban Cooperative Banks are managed by amateur and untrained individuals, who may not have the necessary skills and expertise to manage the bank effectively.
• Lack of compliance with regulatory norms: Some Urban Cooperative Banks are non-compliant with regulatory norms, such as rules related to capital adequacy, asset classification, and provisioning.
  • In July 2023, the RBI has canceled the banking licenses of Adoor Co-operative Urban Bank of Kerala and Mahalaxmi Cooperative Bank Dharwad.
• Competition from other banks: UCBs face competition from other banks, particularly from larger public and private sector banks, which have a wider range of products and services and better access to resources.
• Limited Access to capital: UCBs have limited access to capital, which limits their ability to expand and modernize their operations.
  • Over 50% of Urban Cooperative Banks have less than Rs 100 crore deposits. Most of their problems stem because of their tiny size, which doesn’t allow them to deploy requisite resources in either manpower or in technology.
  • Due to their cooperative structure, UCBs cannot raise capital from any other source but their members.
• High Non-Performing Assets (NPA) Ratio: Recently, the RBI Governor highlighted an 8.7% gross non-performing assets ratio in urban cooperative banks (UCBs).
  • RBI has revoked the licenses of several UCBs due to their unsatisfactory financial health. The central bank has cancelled licences of 54 Urban Cooperative Banks since FY16 because of poor financial performance.
• Dual Regulation Challenges Addressed:
  • Limited area of operations leads to the issue of dual regulation by the RBI and the state government – there is often a lack of clarity as to who has oversight over these banks.

Way Forward:

• Strengthening Governance: Urban Cooperative Banks (UCBs) should focus on strengthening their governance structures and internal controls and ensuring they have trained and professional management teams.
• Credit Risk Management: The need for rigorous credit risk management is underscored, including robust underwriting standards, effective post-sanction monitoring, timely recognition and mitigation of potential stress, rigorous follow-up of large Non-Performing Asset (NPA) borrowers for effective recovery, and maintaining adequate provisioning.
• Enhancing compliance with regulatory norms: Urban Cooperative Banks should ensure that they comply with all relevant regulatory norms and requirements, such as rules related to capital adequacy, asset classification, and provisioning.
• Improving access to capital: Urban Cooperative Banks should explore ways to increase their access to capital, such as by raising members’ equity or issuing bonds.
  • The RBI’s Financial Stability Report (FSR), released in June 2023, showed that, the consolidated capital adequacy ratio or CRAR of scheduled UCBs and non-scheduled UCBs diminished by 194 basis points (bps) and 345 bps, respectively.

• IT and Cybersecurity Infrastructure: Urban Cooperative Banks must establish a robust IT and cybersecurity infrastructure, ensuring the availability of requisite skills at the bank level.
• Collaborating with other banks: Urban Cooperative Banks can consider collaborating with other banks, such as public and private sector banks, to leverage their resources and expertise and expand their reach.

Conclusion:

Addressing governance issues, enhancing financial performance, and embracing regulatory reforms are imperative for the sustainable growth and stability of Urban Cooperative Banks, as emphasized by recent RBI interventions and recommendations.

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