The recent amendments to banking laws streamline provisions and allow up to four nominees per account.

Key Provisions of the Banking Laws (Amendment) Bill

• Increased Nominees: The Bill allows depositors to nominate up to four nominees simultaneously, with the proportion of their shares specified.
• Successive Nomination: It introduces a successive nomination option, enabling depositors to list multiple nominees in a specific order. 
  • Nominees will be approached to claim funds in the order specified by the depositor.
• Substantial Interest in Shareholding: The threshold for determining “substantial interest” in shareholding for directorships has been increased from ₹5 lakh to ₹2 crore.

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• Provisions for Cooperative Banks: The tenure of directors in cooperative banks has been extended from 8 years to 10 years to align with regulatory changes.
  • A director of a Central Cooperative Bank will now be allowed to serve on the board of a State Cooperative Bank.
• Investor Education and Protection Fund (IEPF): The Bill includes provisions to transfer unclaimed dividends, shares, interest, or redemption amounts of bonds to IEPF if they remain unclaimed for seven consecutive years.
  • Individuals will be allowed to claim transfers or refunds from the IEPF for amounts or securities transferred to it.

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Indian Banking Sector

• Banks are Financial Intermediaries between borrowers and lenders. 
  • It accepts deposits from the public and lends money to businesses and consumers. 
  • Its primary liabilities are deposits and primary assets are loans and bonds.
• Classification: Banks, forming part of the Banking System in India, can be divided into two categories – Scheduled Banks and Non-Scheduled Banks.
  • Scheduled Banks: Those financial institutions that are listed in the 2nd Schedule of the Reserve Bank of India Act, 1934. 
    • This inclusion signifies that they meet specific criteria set by the RBI and are subject to its stricter regulations.
    • Under the Second Schedule of RBI Act, 1934, these banks should raise at least Rs 5 lakhs and capital.
  • Non-Scheduled Banks: Those financial institutions that do not meet the criteria to be included in the 2nd Schedule of the Reserve Bank of India Act, 1934. 
    • They operate under a different set of regulations as compared to Scheduled Banks.

Structure of Banking System

• The RBI is at the top of the structure of the Banking System in India and acts as the central bank of India. Beneath the central bank operates various types of following banks:
• Scheduled Commercial Banks in India are categorised in five different groups according to their ownership and/or nature of operation. 
  • These bank groups are:
    (i) State Bank of India and its associates,
    (ii) Nationalised Banks,
    (iii) Regional Rural Banks,
    (iv) Foreign Banks and
    (v) Other Indian Scheduled Commercial Banks (in the private sector). 
• Nationalised Banks: Nationalised banks are commercial banks that are owned and controlled by the government of a country. 
  • Nationalization of banks is the process where the government takes control of private banks and turns them into public sector entities. 
  • It has been done in three stages:
    • 1969: The first major step in nationalization was taken by Prime Minister Indira Gandhi.
    • 1980: The second round of nationalization included six banks: Oriental Bank of Commerce, Vijaya Bank, Punjab and Sind Bank, New Bank of India, Corporation Bank, and Andhra Bank 
    • 1991: The third stage began, where a few banks were authorized and called New Generation banks.
      • The government invited private investors to invest in the country. 
• Regional Rural Banks: RRBs are also known as Gramin Banks. 
  • RRBs were established in 1975 to help develop rural economies by providing credit and other services to small farmers, agricultural laborers, artisans, and small entrepreneurs. 
  • RRBs are owned by the Ministry of Finance, the Sponsored Bank, and the state government in a ratio of 50:35:15, respectively.
  • RRBs are regulated by RBI and supervised by NABARD.
• Foreign Banks: A foreign bank is a bank that has its headquarters in one country but operates in other countries.
  • Examples include Citibank, HSBC, and Standard Chartered Bank.
• Other Indian Scheduled Commercial Banks (in the private sector): A scheduled commercial bank (SCB) in India is a private sector bank that is listed in Schedule II of the Reserve Bank of India Act, 1934.
  • Examples include, HDFC Bank, ICICI Bank, Axis Bank.
• Cooperative Banks: A cooperative bank is a financial institution that is owned and operated by its members, who are also the bank’s customers. 
  • These banks are often founded by people who share a common interest and are part of the same professional or regional group.
  • Examples include Bharat Co-operative Bank, Saraswat Co-operative Bank, Cosmos Co-operative Bank, etc.
• Development Banks: A development bank is a financial institution that provides long-term financing and technical assistance to promote development in areas like agriculture, land, and production. 
  • Development banks can also accept deposits, offer investment products, and make business loans. 
    • National Bank for Agriculture and Rural Development (NABARD): 1982, 
    • Small Industries Development Bank of India (SIDBI): 1990
    • Industrial Development Bank of India (IDBI): 1964 
• Differentiated Banks: Differentiated banks are banks that provide specialized services or products to a specific group of customers. 
  • The Reserve Bank of India (RBI) introduced the concept of differentiated banks in India in 2013 following recommendations from the Nachiket Mor Committee. 
  • Small finance banks (SFBs): These banks offer basic banking services, such as accepting deposits and lending to small businesses, micro and small industries, and other unorganized sector entities. Examples: Ujjivan Small Finance Bank, Janalakshmi Small Finance Bank.
  • Payment banks: These banks offer mobile banking, mobile payments, remittance services, and other banking services. Examples: Airtel Payments Bank, India Post Payments Bank.
• NBFC: A Non-Banking Financial Company (NBFC) is a company registered under the Companies Act, 1956 that provides various financial services similar to banks but is not a bank.

Major Challenges in India’s Banking Sector

• Low Capital Adequacy: Many Indian public sector banks (PSBs) struggle to meet Basel III requirements due to inadequate capital infusion.
  • Recapitalization efforts by the Indian government have aimed to bridge this gap but remain a recurring challenge.
• High Non-Performing Assets (NPAs): NPAs in the Indian banking system increase the risk of capital erosion, making it harder to maintain the required CAR under Basel norms.
  • As of September 24, 2024, the gross non-performing asset (NPA) of public sector banks (PSBs) was 3.12%.
• Low Credit to GDP Ratio: Bank credit to the commercial sector in India is only about 50% of GDP, far below the levels of most developed nations and China (where bank loans exceed GDP).

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• • The only exception among developed countries with a similarly low ratio is the United States, which compensates for it with a well-developed debt market.
• Governance Issues in PSBs: Public Sector Banks (PSBs) face governance challenges such as limited autonomy, political interference, and inefficiencies in decision-making, often leading to poor financial performance.
  • The GNPA ratio of PSBs is projected to increase from 3.7% in March 2024 to 4.1% in March 2025 while for private banks it is from 1.8% to 2.8%.
• Unmet Credit Demand for MSMEs: According to a 2022 Lok Sabha Standing Committee report, the unmet credit demand of MSMEs is ₹25 trillion, which constitutes 47% of their borrowing needs.
  • Over 90% of India’s MSMEs are micro-sized and are best served by specialized NBFCs, as these entities are equipped to handle the high processing costs of small loans.
  • However, banks meet only 15% of MSME credit requirements, leaving a significant gap in funding.
• Operational Challenges: Implementing complex risk assessment models under Basel III requires advanced IT infrastructure and skilled personnel, which many Indian banks lack.
  • Smaller banks often struggle to invest in technology upgrades due to resource constraints.
• Global Competitiveness: Indian banks face competition from well-capitalized foreign banks that easily meet Basel III norms. This disparity puts Indian banks at a disadvantage in global markets.
• Dependence on Government Support: Public sector banks rely heavily on government capital infusion to meet Basel norms, which hampers their autonomy and efficiency.
  • The Government infused ₹3,10,997 crore to recapitalise banks during the last five financial years i.e., from 2016-17 to 2020-21.

Key Government & Regulatory Initiatives for Banking Sector Reforms

• Indradhanush Plan (2015): Aimed at improving the performance of Public Sector Banks (PSBs) through reforms in areas such as appointments, capital infusion, and governance.
  • Introduced the Bank Boards Bureau (BBB) to recommend appointments for top bank positions and provide strategic advice​
• Recapitalization of Banks: Significant capital infusion by the government, including the ₹2.11 lakh crore recapitalization plan in 2017 to strengthen PSBs’ balance sheets.
  • Ensures compliance with Basel III norms​
• IBC (Insolvency and Bankruptcy Code) 2016: A landmark initiative for faster resolution of stressed assets.
  • Enables banks to recover bad loans efficiently and strengthen credit discipline.
• PSB Amalgamation Drive: Consolidation of weaker PSBs with stronger ones to create larger, more efficient entities (e.g., the merger of Bank of Baroda, Vijaya Bank, and Dena Bank in 2019).
  • Aimed at improving scale, efficiency, and reducing redundancies​.
• Bad Bank (National Asset Reconstruction Company Limited): Established to take over large stressed assets and facilitate their resolution, enabling banks to focus on core activities like lending.
  • Complements existing Asset Reconstruction Companies (ARCs)​.
• Account Aggregator Framework: Launched by the RBI to streamline financial data sharing among institutions, improving credit assessment and fostering financial inclusion​.
• Privatization Initiatives: Announced plans to privatize two PSBs as part of broader economic reforms under the Union Budget 2021-22.
  • Aligns with the recommendations of Narasimham and P.J. Nayak Committees to reduce government ownership in banks​.
• Digital Banking Push: Initiatives like the Unified Payments Interface (UPI), e-RUPI, and digital-only banking units to promote cashless transactions and financial inclusion.
  • In 2022, 75 DBUs were announced in 75 districts of the country to commemorate 75 years of India’s independence.

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Way Forward for Banking Sector Reforms in India

• Strengthening Governance and Autonomy: Implementing recommendations of the P.J. Nayak Committee to enhance the governance of Public Sector Banks (PSBs). 
  • This includes reducing government stakes below 50%, offering greater autonomy, and ensuring professional management​.
• Privatization and Consolidation: Privatizing weaker PSBs and consolidating stronger ones to reduce the burden on government resources while ensuring efficiency and competitiveness in the banking sector​.
• Strengthening Credit Flow to MSMEs: Encouraging banks to lend more to Micro, Small, and Medium Enterprises (MSMEs), possibly through increased collaboration with Non-Banking Financial Companies (NBFCs). 
  • This will address the ₹25 trillion unmet credit demand in this sector​.
• Adopting Technology and Innovation: Leveraging artificial intelligence, big data, and the Account Aggregator framework to improve credit assessments and enhance customer experiences. 
  • The Account Aggregator framework allows banks to collect detailed financial data on small borrowers, enabling better risk assessment.
  • This will also help address Non-Performing Assets (NPAs) through better risk management​
• Creating a Robust Bond Market: Encouraging large corporations to raise funds through bonds rather than bank loans. 
  • This will reduce the burden on banks and promote a diversified financial ecosystem, akin to developed economies​.
  • This approach is widely used in countries like the US, where even high-risk (“junk”) bonds often find buyers.
• Focus on Niche Banking and Development Finance: Establishing Development Finance Institutions (DFIs) for long-term infrastructure projects and promoting niche banking tailored to specific sectors like agriculture, MSMEs, and retail will enhance financial efficiency and accessibility.
• Reducing “Lazy Banking”: Indian banks tend to prioritize lending to large, well-known corporations due to the safety and profitability of such loans.
  • This “lazy banking” limits their ability to assess risks and lend to smaller borrowers like MSMEs.

Conclusion

Reforms in India’s banking sector are critical to improving financial stability, enhancing credit accessibility, and fostering economic growth. By addressing governance challenges, expanding financial inclusion, and leveraging technology, the sector can become more resilient and competitive in a globalized economy​

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The Parliament has recently passed the Bharatiya Vayuyan Vidheyak Bill, 2024, aimed to provide some relief to aviation personnel in their licensing processes.

Key Highlights of the Bharatiya Vayuyan Vidheyak Bill, 2024

• Replaces Aircraft Act, 1934: The Bill seeks to replace the Aircraft Act, 1934. 
  • The Bill retains the regulatory structure under the Act. 
  • The Aircraft Act, 1934 is a foundational legislation in India that regulates the manufacture, possession, use, operation, and safety of aircraft. 

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• The Bill Retains Key Aviation Regulatory Bodies: The Act sets up: 
  • Directorate General of Civil Aviation (DGCA) for overseeing safety and performing regulatory functions, 
  • Bureau of Civil Aviation Security (BCAS) for overseeing security,
  • Aircraft Accident Investigation Bureau (AAIB) for investigating accidents.  
    • The Central government will exercise superintendence over these bodies. 
    • It may review or modify their orders.
    • The Bill retains these provisions.
• Regulation of Aircraft Related Activities: The Bill  adds power to regulate the design of aircraft, as well as the places where they are being designed, in addition to retaining provisions for their manufacture, repair and maintenance.
• Offences and Penalties: Offences include:
  • Flying an aircraft dangerously, 
  • Carrying arms or explosives in an aircraft,
  • Depositing rubbish or slaughtering animals near airports.  
    • These are punishable with imprisonment of up to three years, a fine up to one crore rupees, or both. 
• Introduction of Second Appeal Provision: The Bill introduces a provision for a second appeal against decisions related to the imposition of penalties for violating Rules under it.
• Transfer of Licensing Responsibilities to DGCA: The Bill shifts the responsibility for the Radio Telephone Operator Restricted (RTR) certificate and licensing process from the Department of Telecom (DoT) to the Directorate General of Civil Aviation (DGCA). 
  • This transition creates a single-window clearance system, streamlining certification processes for aviation personnel, including aircraft maintenance engineers, flight dispatchers, and pilots.
• Addressing Corruption in Licensing Exams: By moving the RTR exam under the DGCA’s purview, the Bill aims to tackle allegations of corruption previously associated with the DoT, where candidates, including trainee pilots, were reportedly subjected to demands for hefty bribes.

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Key Issues of the Bharatiya Vayuyan Vidheyak Bill, 2024

• DGCA Under Direct Government Control: The DGCA, tasked with regulatory functions and safety oversight, operates under the central government’s direct supervision.
  • The government can modify or cancel DGCA orders, and its directions to the DGCA are binding.
  • The Bill does not specify:
    • Qualifications for the Director General.
    • Selection process for the position.
    • Tenure of the Director General’s service.
  • Unlike other independent regulators in sectors like telecom, electricity, and insurance, the DGCA lacks autonomy and functions more like a government department.
• Power for government to unilaterally appoint Arbitrator may violate right to equality:
  • The Act allows the government to direct demolition or modification of structures near airports and provides for compensation.
    • If no agreement is reached, the government appoints an arbitrator, who must be qualified to serve as a High Court Judge.
  • The Bill specifically states that the Arbitration and Conciliation Act, 1996 will not apply to arbitrations under the Bill.
    • The Arbitration and Conciliation Act, 1996 typically governs arbitration processes in India.
  • The Supreme Court (2024) ruled that unilateral appointment of arbitrators by one party violates Article 14 of the Constitution (Right to Equality).
• Criminal Penalties through Executive Rules: The Bill enables the central government to impose criminal penalties for violations of certain rules. 
  • Delegating such authority to the Executive may breach the principle of separation of powers, as the Legislature should decide on criminal offences and penalties.

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Recently ,the Parliament witnessed heated debates as Opposition MPs criticized the government for naming new legislations in Hindi and Sanskrit. 

Opposition’s Criticism

• Constitutional Concerns: It was argued that using Hindi titles for bills whose content is in English might contravene Article 348 (1B) of the Constitution, which mandates authoritative legal texts in English.
• Federal and Linguistic Diversity Ignored: The government was accused  of undermining India’s linguistic diversity and federal principles with opposition terming it “Hindification” of laws.
  • Earlier examples, such as the Bharatiya Nyaya Sanhita replacing the Indian Penal Code,  were cited as instances of this trend.
• Non-Hindi States Raise Objections: It was argued that Hindi names alienate non-Hindi speakers.
  • Demand was raised to rename the Bharatiya Vayuyan Vidheyak to Aircraft Bill, 2024.
  • Difficulties in pronouncing Hindi names, labeling the practice “exclusionary,” particularly for India’s predominantly non-Hindi-speaking population.
• Mockery of the Trend: The “Fashion” of giving bills Hindi names was criticised suggesting it complicates legislative processes unnecessarily.

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Arguments Supporting the Use of Hindi/Sanskrit Names for Bills

• Cultural Identity and Heritage: Using Hindi or Sanskrit names for laws reflects India’s rich linguistic and cultural legacy, promoting pride in native traditions over colonial influences.
• Representation of Indian Languages: Incorporating Hindi, which has wide usage across the country, helps create a unique and relatable identity for legislations while fostering linguistic inclusivity.
• Integration of Multiple Languages: Names often combine elements from different Indian languages, reflecting the diversity and unity of India’s linguistic landscape.
• Breaking Colonial Legacy: Moving away from English-only names helps India assert independence from colonial norms, symbolizing a reclamation of its cultural and historical identity.
• No Legal or Practical Barriers: The substantive text of the bills remains in English, ensuring accessibility for stakeholders, while the title’s language does not violate constitutional provisions.
• Encouraging Familiarity and Usage: Exposure to Hindi or Sanskrit terms through official names encourages people to familiarize themselves with classical and national languages, fostering linguistic appreciation.
• Promotion of Classical Languages: The use of Hindi and Sanskrit aligns with efforts to preserve and promote classical Indian languages, contributing to their continued relevance in modern governance.

Constitutional Provisions and Rules for Languages of Bills in Indian Parliament

• Article 348(1): This provision mandates that the official language of the Union, Hindi in Devnagari Script shall be used for official purposes of the Union.
  • However, it also allows for the use of English for official purposes.
  • Until Parliament provides otherwise by law, all proceedings in the Supreme Court and every High Court shall be conducted in the English language.
• Article 348(1B): This clause specifically addresses that the authoritative text must be in the English language.
  • The authoritative text of 
    • of all Bills to be introduced or amendments thereto to be moved in either House of Parliament or in the House or either House of the Legislature of a State,
    • of all Acts passed by Parliament or the Legislature of a State and of all Ordinances promulgated by the President or the Governor of a State, and
    • of all orders, rules, regulations and bye-laws issued under this Constitution or under any law made by Parliament or the Legislature of a State.
• The authoritative text of a bill in the Indian context is the English version of the bill. 
  • This means that in case of any dispute or ambiguity, the English version will be considered the final and binding interpretation of the law.
• Need Of Translation: If a State Legislature prescribes a language other than English for its Bills, Acts, or Ordinances, a translation in English published in the Official Gazette of that State shall be considered the authoritative text in the English language.
• Use Regional Languages in High Court Proceedings (Article 348(2)): The Governor of a State, with the previous consent of the President, may authorize the use of Hindi or any other language used for official purposes of the State in proceedings in the High Court located in that State.
• Rules of Procedure and Conduct of Business in Parliament:
  • Rules related to the introduction and passage of bills do not explicitly specify the language of the title.
  • The language of the bill itself, however, is typically English, as this is the language in which legal drafting is standardized.
• Promotion of Hindi: Article 351 mandates the Union government to:
  • Promote the spread of Hindi.
  • Develop Hindi to serve as a medium of expression for India’s diverse culture.
  • Enrich Hindi by assimilating elements from Hindustani and other Scheduled Languages.
  • Draw vocabulary primarily from Sanskrit and secondarily from other languages.

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English as an Official Language of the Union

• Initial 15-Year Period: English was designated as an official language of the Union for a period of 15 years from the Constitution’s commencement.
• Continuation of English: The Official Languages Act of 1963 ensured the continued use of English for official purposes of the Union and in Parliament, even after the 15-year period.
• Parliamentary Power to Regulate Language Usage: Parliament retains the power to legislate on the use of English and Devanagari numerals for official purposes beyond the initial 15-year period.

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The Supreme Court quashed criminal defamation proceedings filed by the Murasoli Trust against Union Minister L. Murugan over his remarks at a press meet.

Key Highlights of the Case

• Allegations: The defamation complaint alleged that Mr. Murugan, during a press meet in December 2020, made remarks implying the Trust was operating on panchami land (Depressed Class land) without legal rights, harming its reputation.
• Trust’s Position: The Trust argued the remarks were intentional and caused reputational harm.
• Minister’s Defense: He clarified that the statements were political and not intended to defame the Trust.
• Supreme Court’s Observation: The 2 judges Bench highlighted the need for “breathing space” in political free speech and remarked that political figures should be prepared to handle criticism.
  • The Trust accepted Mr. Murugan’s clarification, leading to the quashing of the defamation proceedings.

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About Defamation Cases in India

• Definition: Defamation refers to any statement that harms the reputation of an individual or entity.
• Categorisation of Defamation Laws in India: In India, defamation is an offence under both the civil and criminal law.
  • Civil defamation law in India: Defamation is punishable under the Law of Torts by imposing punishment in the form of damages to be awarded to the claimant. 
    • A tort is a civil wrong that causes a claimant to suffer loss or harm, resulting in legal liability for the person who commits a tortious act.
  • Criminal defamation law in India: Defamation is a bailable, non-cognizable and compoundable offence.
  • Key Features of Criminal Defamation:
    • Statements must be proven to have been made with intent to harm reputation.
    • Truth is a defense if the statement is made for public good.
• Defamation Laws in India
  • Bharatiya Nyaya Sanhita, 2023 (BNS): The offence of defamation carries a simple imprisonment of up to two years or a fine, or both or with community service.
    • Section 354 of the BNS defines defamation and corresponds to Section 499 of the IPC.
  • Indian Penal Code (IPC): The offence of defamation carries a punishment of simple imprisonment of up to 2 years or a fine or both. The law of criminal defamation is enumerated in Sections 499, 500, 501 and 502 of the IPC, 1860.
  • Information Technology (IT) Act, 2000: All defamation related criminal and civil laws are applicable to defamation done by use of social media under the IT Act, 2000.
• Constitutional Provisions:
  • Article 19(1)(a): Guarantees freedom of speech and expression.
  • Article 19(2): Permits reasonable restrictions on this freedom, including to protect reputation.

Supreme Court Directions in Defamation Cases

• Balancing Free Speech and Reputation: The Court has emphasized that freedom of speech should not be curtailed unnecessarily, especially in political discourse.
• Thick Skin in Politics: The Court often advises political leaders to be tolerant of criticism, as seen in Justice Gavai’s remarks in this case.
• Precedent Cases:
  • Subramanian Swamy vs. Union of India (2016): The Supreme Court upheld the constitutionality of criminal defamation under IPC, stating it strikes a balance between free speech and protection of reputation.
  • Rajdeep Sardesai vs. State of Andhra Pradesh (2020): The Court quashed a defamation case against the journalist, emphasizing the need to protect media freedom in reporting.
  • Arun Jaitley vs. Arvind Kejriwal (2018): Settled through mutual agreement, the case highlighted how public figures often resolve defamation disputes without protracted litigation.

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Global View On Defamation Case:

• Due to increasing social media activities, the majority of nations can be seen enacting stricter laws for defamation.
  • Japan in the year 2022, introduced harsher penalties for criminal defamation, the punishment has changed from short-term detention and fines under 10,000 yen to one year in prison with the possibility of forced labour and a fine up to 300,000 yen.
• However, countries like Australia and New Zealand consider defamation to be a civil offence.
  • In 1993, criminal defamation was outlawed in New Zealand.
• As courts typically award bigger damages in criminal defamation cases than in civil ones, they are more frequent than civil ones.

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This article sheds light on the old age water harvesting system – Afghanistan’s karez system and  surangam.  

Introduction to Surangam

• The surangam is a traditional water harvesting system primarily found in northern Kerala and southern Karnataka.
  • It is also known as suranga
• It consists of a tunnel dug through laterite hillocks, allowing water and moisture to seep out from the periphery.
• Similar in concept to the qanats of Mesopotamia and karez systems of Persia, surangam was adapted to suit local conditions in India.
• Local Use: It is used for domestic and agricultural purposes in northern Malabar.

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Origins and Historical Debate

• Earlier theories linked surangam to Persian karez systems, but newer studies argue for an indigenous origin:

• • A 2015 research paper proposed that the system was likely developed by Karhada Brahmin families who migrated to Kasargod in the 17th century under duress.
  • They might have adapted the technology to exploit springs in laterite hills, digging deeper as water sources receded.
• Local Context:
  • Persian influence is evident in the karez systems of Burhanpur (Madhya Pradesh), Bijapur, and Bidar (Karnataka), but there is no direct evidence linking surangam to these systems.

Cultural and Historical Influence

• Deccan Sultanates and Mysuru Connection:
  • Knowledge transfer may have occurred during the Mughal and Maratha rule or under the Wodeyar Kingdom of Mysuru.
  • Tipu Sultan’s reign might have facilitated knowledge exchange via Mangaluru port trade or migrations.
• Cultural Heritage:
  • The Karhada Brahmin community considers surangams a part of their cultural legacy, aiding their preservation.

Comparison with Karez System

• Similarities:
  • Both systems are the underground water channels used in arid regions.
• Differences:
  • Karez systems are long tunnels with vents, built in water-scarce regions like Persia.
  • Surangams are shorter (up to 300 meters), with few or no vents, designed to access water in laterite hills.

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Other ancient water harvesting systems

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Parts of upstate New York, Pennsylvania, Ohio, and Michigan, located near the Great Lakes, have experienced heavy snowfall of nearly 1.2 meters recently.

What is Lake-Effect Snow?

• A weather phenomenon triggered when cold air moves over the relatively warm waters of large lakes. 

How Lake-Effect Snow Forms?

• Cold Air Moving Over Warm Lakes: Lake-effect snow occurs when a cold air mass, often from regions like Canada, moves over the relatively warm waters of large lakes like the Great Lakes.
• Moisture and Warmth from the Lake: The cold air absorbs heat and moisture from the lake water, causing the air to warm slightly and rise.
• Formation of Snow Clouds: As the air rises higher, it cools and condenses into clouds capable of producing heavy snowfall.
• Localized Snowfall: These clouds release snow in narrow bands, usually affecting specific areas downwind of the lakes.

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Impact of Lake-Effect Snow on Local Communities

• Transportation Challenges: Roads can become slippery and dangerous, causing accidents and delays. 
• Power Outages: Heavy snowfall can bring down power lines, leading to blackouts that disrupt electricity supply to homes and businesses.
• Structural Damage: The weight of accumulated snow can cause roofs and weaker structures to collapse, leading to significant damage.
• Disruption of Daily Life: Schools, offices, and businesses often close during heavy snow, affecting education and local economies.
• Uneven Impact:  Snowfall can vary drastically between nearby areas due to wind patterns, making preparedness unpredictable.

How Does Lake-Effect Snow Differs from Other Types of Snowfall?

• Relies on Lakes: Lake-effect snow happens when cold air passes over warm lake water, while other snowfalls usually come from large weather systems carrying moisture.
• Localized Snow Bands: Unlike widespread snow from regular storms, lake-effect snow occurs in narrow, concentrated bands, often creating uneven snowfall across regions.
• Intense Snowfall Rates: Lake-effect snow can result in much heavier snowfall, sometimes reaching 5-8 cm per hour, compared to lighter snowfall rates in regular storms.

Measures to Mitigate the Effects of Lake-Effect Snow

• Clear Roads Quickly: Snowplows and salt spreaders should be deployed regularly to keep roads safe for vehicles.
• Build Stronger Structures: Buildings in snow-prone areas should have reinforced roofs to withstand the weight of heavy snow.
• Emergency Preparedness: Governments should set up alert systems to inform people of snowfall in advance and keep emergency services ready to act.
• Stock Essential Supplies: Residents should keep adequate stocks of food, water, and other essentials to deal with prolonged snowfall.
• Snow Tires for Vehicles: Cars and other vehicles should use snow tires or chains for better traction in snowy conditions.
• Public Awareness Programs: Authorities can educate people about safety measures to follow during extreme snowfall.

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Flamingos have returned to Pulicat Lake near Sriharikota, Andhra Pradesh, with the onset of the northeast monsoon.

About Flamingos

• Flamingos are large shorebirds with S-shaped long necks and stick-like legs.
• There are six species of flamingos worldwide:

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• Distribution: Found in tropical and subtropical regions globally.
• Indicator Species: The flamingoes are the indicators of a healthy coastal environment.
  • They play a vital role in maintaining the delicate balance of wetland ecosystems.
• Types of Flamingoes found in India: Two species are commonly found.
  • Greater Flamingo
  • Lesser Flamingo

About Greater Flamingo (Phoenicopterus roseus)

• It is the most widespread and largest flamingo species.
• Distinguished by black-tipped light pinkish beaks, yellowish eyes, and pinkish-white bodies.
• Taller compared to other species.
• State Symbol: Recognized as the state bird of Gujarat.
• Distribution: Found in Africa, the Indian subcontinent, the Middle East, and southern Europe.
  • In India, they are present across most regions except high-altitude Himalayas, East, and Northeast India.
• Habitat: Inhabit both brackish and freshwater wetlands.
• Conservation Status
  • IUCN: Listed as Least Concern.
  • CITES: Included in Appendix II.

About Lesser Flamingo (Phoeniconaias minor)

• They are the smallest among all flamingo species.
• Unique for possessing a “hallux” or hind toe, which is absent in some other flamingo species.
• Males are slightly taller than females.
• Habitat: Found in coastal and inland wetlands.
• Diet: They primarily feed on blue-green algae but also consume crustaceans and small insects occasionally.
• Distribution: Largely restricted to western India in brackish water regions such as Gujarat, Rajasthan, and Mumbai.
• Conservation Status
  • IUCN: Classified as Near Threatened.
  • CITES: Included in Appendix II.

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About Pulicat Lake

• Pulicat Lake is India’s second-largest brackish water ecosystem, following Chilika Lake in Odisha.
  • It was designated as a Ramsar site in 2002.
• It runs parallel to the Bay of Bengal and has a sandbar, making it a unique lagoon ecosystem.
• Water Sources: The lake is fed by three rivers:
  • Arani River: At its southern tip.
  • Kalingi River: From the northwest.
  • Swarnamukhi River: At the northern end.
• Location: Pulicat Lake lies on the border of Andhra Pradesh and Tamil Nadu, with the majority of the lake situated in Andhra Pradesh.
• Bird Diversity: The lake attracts a variety of birds, including grey pelicans and painted storks, which visit annually.

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At the 16th Conference of Parties (COP16) of the United Nations Convention to Combat Desertification (UNCCD) held in Riyadh, India presented the Aravalli Green Wall Project (AGWP).

About the Aravalli Green Wall Project (AGWP)

• The AGWP is a large-scale afforestation initiative launched in 2019 by the Indian government to restore degraded land in the Aravalli Range.
• Inspiration: Inspired by the Great Green Wall initiative in Africa. It was launched by the Ministry of Environment, Forest and Climate Change.
• Geographic Scope:
  • Aims to green a 5 km buffer zone around the Aravalli Hill Range.
  • Covers states of Haryana, Rajasthan, Gujarat, and Delhi.
• Objectives:
• • Restore degraded land: Restore 1.15 million hectares of degraded land by 2027.
  • Combat desertification: Prevent the eastward expansion of the Thar Desert and reduce land degradation.
  • Improve ecological health: Enhance the biodiversity and ecosystem services of the Aravalli range.
  • Mitigate climate change: Sequester carbon and improve air quality.
  • Conserve water resources: Improve water quality and quantity through groundwater recharge and soil moisture conservation.
  • Create green jobs: Generate employment opportunities in afforestation, conservation, and related activities.
  • Community engagement: Involve local communities in the project to ensure sustainability.

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About Aravalli Range

• It is an old Fold Mountain Range formed during the Precambrian Era, making it one of the oldest mountain ranges in the world.
• Extent: Stretches across the states of Rajasthan, Gujarat , Haryana, and Delhi.
• Highest Point: Guru Shikhar in Rajasthan is the highest peak.
• River System: The Aravalli Range plays a significant role in India’s river system.
  • Rivers like the Yamuna, Luni, and Sahibi flow through these hills.
• Current Status:
  • Due to extensive erosion over millions of years, the range is now relatively low-lying.
  • It is an important ecological region, supporting diverse flora and fauna.
  • The range faces challenges like deforestation, mining, and urbanization.
  • Conservation efforts are underway to protect its biodiversity and ecological significance.

About The Great Green Wall Initiative

• The Great Green Wall is a massive African-led initiative aimed at combating desertification and restoring degraded land across the African continent.
• Establishment: The initiative was launched in 2007 by the African Union with the goal of planting a wall of trees across the entire width of the continent, from Senegal to Djibouti.
• Objective: The primary objective is to restore 100 million hectares of degraded land, create millions of green jobs, and improve the livelihoods of millions of people.
• Impact: The Great Green Wall is expected to have a significant impact on climate change mitigation, biodiversity conservation, and food security. It will help to sequester carbon, protect water resources, and improve soil fertility.

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About United Nations Convention to Combat Desertification (UNCCD)

• The UNCCD is the only legally binding framework set up to address desertification and the effects of drought.
• Establishment: The UNCCD was adopted in 1994 and entered into force in 1996.
  • It is one of the three Rio Conventions, alongside the UNFCCC and the CBD.
• Parties to the Convention: There are 197 Parties to the Convention, including 196 country Parties and the European Union.
  • India is one of the initial Parties of the Convention.
• Objective: The UNCCD aims to combat desertification and land degradation, and to mitigate the effects of drought.
  • It focuses on the drylands, which cover over 40% of the Earth’s land surface.
  • It promotes sustainable land management practices.
  • It supports the implementation of the Sustainable Development Goals (SDGs).
• UNCCD COP 16
  • Theme: Our Land. Our Future.
  • Key Focus Areas:
    • Accelerating land restoration
    • Boosting drought preparedness, response, and resilience
    • Ensuring land continues to provide climate and biodiversity solutions
    • Boosting resilience to sand and dust storm

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New initiatives and the World Drought Atlas 2024 were launched at UNCCD COP16 under the chairmanship of Saudi Arabia.

Riyadh Global Drought Resilience Partnership

• Introduction: The Riyadh Global Drought Resilience Partnership, announced by the Kingdom of Saudi Arabia during UNCCD COP16.
  • It aims to tackle the growing challenges posed by drought globally by mobilizing public and private finance.
• Objective:
  • To assist 80 drought-hit countries, particularly Least Developed Countries (LDCs) and Lower Middle-Income Countries (LMICs), in implementing drought resilience measures.
  • To mobilize global resources and shift the focus from short-term relief to long-term preparedness and sustainability.
  • To save lives and livelihoods by promoting international cooperation, facilitating knowledge sharing, and building capacity.

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• Funding Mechanism:
  • The partnership will rely on a combination of public and private funding sources.
  • Funding will be secured through voluntary contributions from governments, financial institutions, philanthropic organizations, and other stakeholders.
  • The partnership employs blended financing models, including:
    • Concessional loans
    • Commercial loans
    • Equity participation
    • Insurance schemes
    • Savings programs
• Initial Funding: An initial commitment of $2.15 billion has been pledged by the Kingdom of Saudi Arabia,  Islamic Development Bank,  and OPEC Fund for International Development.
  • The Arab Coordination Group is expected to announce additional pledges during COP16.
• Implementation Plan:
  • Stakeholder Collaboration: The partnership will collaborate with governments, NGOs, and private sectors to identify and prioritize impactful projects.
  • Technical and Financial Support: Assistance will be provided for the design, execution, and scaling of drought resilience initiatives in vulnerable regions.
  • Knowledge Sharing and Capacity Building: Facilitating the exchange of expertise and training for communities, organizations, and governments to build lasting resilience.
• Key Partnerships and Collaboration: Collaboration with the International Drought Resilience Alliance (IDRA), co-chaired by Spain and Senegal, to align efforts and enhance synergies for global drought resilience.

World Drought Atlas

• The World Drought Atlas 2024, launched by the United Nations Convention to Combat Desertification (UNCCD).
• Objective:
  • To depict the systemic risks of drought across critical sectors.
  • To describe concrete measures and pathways to manage, reduce, and adapt to drought risks.
• Implementation:
• The Atlas is an interactive online platform that provides data and analysis on drought risk.
  • It will be updated regularly with new information.
  • The Atlas is intended to be a valuable tool for policymakers, practitioners, and researchers.
• Funding: The Atlas is funded by the UNCCD, the European Commission Joint Research Centre (JRC), and other partners.

Key Highlights of 2024 World Drought Atlas launched at Riyadh

• Widespread Impact by 2050: Approximately 75% of the global population will be affected by drought by 2050, exacerbated by climate change and human mismanagement.
• Drought as a Multidimensional Crisis: Beyond climate extremes, droughts are worsened by factors like unsustainable water use, poor land management, and competition for water resources among sectors (agriculture, energy, and trade).
• Sectoral Impact: Droughts significantly affect energy production, agriculture, and trade, with ripple effects on food security and livelihoods.
• Call for Data and Monitoring: Effective drought management requires investments in monitoring systems, data sharing, early warning systems, and risk forecasting.
• Insights Specific to India
• • Agricultural Vulnerability: India is particularly vulnerable due to its large agricultural workforce (over 25 million people).
    • Predicted drought impacts include significant losses in soybean yields, threatening farmer livelihoods.
  • Case Study – Chennai’s ‘Day Zero’ (2019): Despite high annual rainfall (~1,400 mm) and rainwater harvesting mandates, mismanagement of water resources and unplanned urbanization led to a severe water crisis.
  • Water Mismanagement: Between 2020 and 2023, India witnessed riots and tensions over water mismanagement, a phenomenon expected to worsen without policy interventions.
• Sub-Saharan Africa: The region is predicted to experience rising tensions due to increasing drought intensity and water competition.

Drought Mitigation Recommendations in  World Drought Atlas 2024

• Policy-Level Action: Strong national and international policies are needed to promote drought resilience.
  • Actions should address land and water use practices and encourage sustainable development.
• Improved Practices: Adoption of appropriate soil and agronomical management techniques to reduce drought impacts on agriculture.
• Investment in Forecasting and Knowledge Sharing: Developing monitoring systems and sharing data internationally to predict and mitigate drought risks.
• Role of IDRA: The International Drought Resilience Alliance (IDRA), formed in 2022, supports innovative funding mechanisms, knowledge sharing, and impactful actions to combat drought globally.
• Cross-Sector Collaboration: Cooperation between governments, private sectors, and civil society to ensure resilience across energy, agriculture, and trade.

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About International Drought Resilience Observatory (IDRO)

• IDRO is the first global, AI-powered data platform for proactive drought management and an initiative of the International Drought Resilience Alliance (IDRA). 
• The Observatory will provide a single portal where managers can easily analyse and visualise key social and environmental drought resilience indicators and use them to make practical decisions.
• Objective:
  • To build a global, AI-powered data platform for drought resilience.
  • To provide timely and accurate information on drought conditions.
  • To support decision-making and early warning systems.
• Implementation: IDRO will collect and analyze data from a variety of sources, including satellite imagery, weather stations, and ground observations.
  • The platform will use AI to identify and track drought events.
  • IDRO will provide early warnings to governments and communities.
• Funding: The IDRO is funded by the International Drought Resilience Alliance (IDRA).
  • The Alliance is a partnership of governments, NGOs, and private sector organizations.

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An event was  organized by the Dr. Ambedkar Foundation (DAF) under the Union Ministry of Social Justice and Empowerment at Prerna Sthal, Parliament House Complex on December 6.

About Mahaparinirvan Diwas

• It commemorates the death anniversary of Dr. Bhimrao Ramji Ambedkar, the chief architect of the Indian Constitution and a champion of social justice.
• The day reflects on Ambedkar’s contributions to equality, justice, and an inclusive society, drawing inspiration from his teachings.

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About ‘Mahaparinirvan’

• The term originates from Buddhist texts, signifying nirvana after death and liberation from the cycle of birth and rebirth.
• Dr. Ambedkar embraced Buddhism in 1956, viewing it as a path to liberation from caste-based oppression.
• He was deeply influenced by Buddha’s teachings, and is regarded as a spiritual and social reformer.
  • His death anniversary is celebrated as Mahaparinirvan Diwas.

Contribution of Dr. B.R. Ambedkar

• Focus on Marginalized Communities: Upliftment of Dalits, women, and laborers facing systemic discrimination.
• Key Reforms:
  • Established the Bahishkrit Hitkarini Sabha (1923) to promote education and economic welfare for marginalized groups.
  • Launched Mooknayaka newspaper to amplify voices of the oppressed.
• Major Movements:
  • Mahad March (1927): Advocated Dalit rights to access public water.
  • Kalaram Temple Entry Movement (1930): Challenged caste-based exclusion.
  • Played a pivotal role in the Poona Pact (1932), replacing separate electorates with reserved seats for Dalits.
• Economic and Infrastructure Vision:
  • Influenced the establishment of the Reserve Bank of India (RBI) and the Finance Commission of India.
  • Championed projects like the Damodar Valley Project, Hirakud Dam Project, and Sone River Project.
  • Advocated for the National Power Grid System and founded Employment Exchanges.
• Role in Constitution Framing:
  • As Chairman of the Constitution Drafting Committee, drafted provisions for social and economic justice.
  • Ensured protections for Scheduled Castes, Scheduled Tribes, and Other Backward Classes, fostering an inclusive democracy.

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• Literary Contribution:
  • His writings include “The Untouchables,” “Who Were the Shudras?” and “The Annihilation of Caste.”
• Awards and Recognition:
  • Posthumously awarded the Bharat Ratna in 1990 for his contributions to nation-building.

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National Legal Metrology Portal (eMaap)

Context: The National Legal Metrology Portal (eMaap) is being developed by the Department of Consumer Affairs to integrate State Legal Metrology Departments and their portals into a unified National System. 

About National Legal Metrology Portal (eMaap)

• Aim: To streamline processes for issuing licenses, conducting verifications and managing enforcement and compliance. 
• Importance: 
  • Database: eMaap will create a centralized database and eliminate the need to register on multiple State Portals, fostering ease of doing business and transparency in trade practices.
  • Simplification: To simplify critical procedures such as issuing, renewing, and amending licenses, as well as handling verification & stamping of weighing & measuring instruments, registration certificates, and appeals, etc.  
  • Ease of doing Business: It minimizes compliance burdens for traders and industries and reduces paperwork by ensuring timely adherence to the provisions of the Legal Metrology Act, 2009.
  • Facilitates Policy Formation: eMaap will enable data-driven decision-making by streamlining enforcement activities ensuring a robust and efficient regulatory framework.

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About Legal Metrology

• Metrology is the scientific study of measurement and Legal metrology helps in providing standards for the control of measurements and measuring instruments. 
  • Legal metrology also safeguards public safety, the environment, customers, and merchants, and is essential for fair trade.
• Legal Metrology Act, 2009: The sale or distribution of all packaged goods in India, such as export goods, food items, and consumer products, requires a Legal Metrology Certificate from the Metrology Department of Consumer Affairs, as per the Legal Metrology Act, 2009.
• Authority: Director of Legal Metrology is a statutory authority under the Legal Metrology Act, 2009 relating to inter-state trade and commerce of weights and measures including pre-packaged commodities.
• Enforcement:  It is done by the State Governments by the Controller of Legal Metrology and other Legal Metrology Officers as per the provisions of Act.

Repo Rate unchanged at 6.5%

Context: The Reserve Bank of India’s Monetary Policy Committee has for the 11th consecutive time kept the repo rate unchanged at 6.5 per cent maintaining the status quo.

• The RBI has maintained the repo rate at 6.5 per cent since February 2023.
• The standing deposit facility (SDF) rate remains at 6.25 per cent, while the marginal standing facility (MSF) rate and the bank rate remain at 6.75 per cent
• Stance: The RBI MPC has decided to maintain its ‘neutral’ stance, with a 4:2 majority to ensure that inflation aligned with the 4 per cent target while supporting growth.
• RBI’s Real GDP Projection: For financial year 2024-25, RBI lowered its Real GDP growth forecast to 6.6 per cent, down significantly from earlier projections of 7.2 per cent.
• Inflation: RBI revised its projections for consumer price index (CPI)-based inflation to 4.8 per cent from 4.5 per cent for financial year 2024-25.
  • Inflation growth is driven by high food prices as well as geopolitical disruptions severely affecting global supply chains.

‘Anna Chakra’ platform

Context: The Food and Consumer Affairs Minister launched ‘Anna Chakra’, a new tool to enhance the efficiency of the Public Distribution System (PDS).

More on the news

• Simultaneously, a SCAN  (subsidy claim application for NFSA)  portal was also launched for states to submit and process food subsidies. 

About Anna Chakra Platform

• It was developed in collaboration with the World Food Programme and IIT-Delhi using advanced algorithms.
• Key Features
  • Efficient Foodgrain Movement: Uses advanced algorithms to streamline logistics across the country.
  • Wide Coverage:
    • Includes 4.37 lakh Fair Price Shops and 6,700 warehouses.
    • Supports the food security program benefiting 81 crore people.
  • Cost and Efficiency Gains:
    • Projected savings of ₹250 crore annually.
    • Reduction in transportation workload by ₹58 crore in quantity-kilometer metrics.
  • Technological Integration
    • Linked with the Railways’ Freight Operations Information System.
    • Connected to the PM Gati Shakti platform, enhancing logistics technology.

Benefits of the Initiatives

• Economic Efficiency: Reduces transportation costs for food distribution.
• Environmental Sustainability: Lowers carbon emissions through optimized logistics.

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IWAI’s Kalughat IMT gets recognition for sustainable infrastructure project

Context: Inland Waterways Authority of India’s Intermodal Terminal (IMT) at Kalughat in Bihar has received five star SVAGRIHA rating from GRIHA council.

IMT Kalughat, Bihar

• Developed by the Inland Waterways Authority of India (IWAI) under the Jal Marg Vikas Project (JMVP) for capacity enhancement of National Waterway 1 (NW 1) on River Ganga.
• Cost: ₹82.48 crore; Capacity: 77,000 twenty-foot equivalent units (TEUs).
• Provides critical connectivity for cargo transport in North Bihar and EXIM cargo to Nepal.

SVAGRIHA Rating

• Simple Versatile Affordable GRIHA (SVAGRIHA) is a green building rating system under the Green Rating for Integrated Habitat Assessment (GRIHA), developed for standalone small-scale projects like residences, offices, schools, etc.
• Purpose: Reduces environmental impact of small developments by providing sustainability guidelines.

National Waterway 1 (NW-1)

• Known as the Ganga-Bhagirathi-Hooghly River System.
• Length: 1,620 km, from Haldia (West Bengal) to Allahabad (Prayagraj, Uttar Pradesh).
• States Covered: Passes through Uttar Pradesh, Bihar, Jharkhand, and West Bengal.
• Management: Developed and maintained by the Inland Waterways Authority of India (IWAI) since its declaration in 1986.
• Development under Jal Marg Vikas Project (JMVP): Funded by the World Bank for infrastructure and capacity enhancement of NW-1.
• Multi-Modal Terminals (MMTs): Varanasi, Sahibganj and Haldia

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