Tuesday, 4th October 2022

Table of contents

1   News Snapshot

●  

Tokenisation for credit and debit card transactions

●  

Internal democracy in political parties

●  

Unlawful Activities (Prevention) Act (UAPA)

2   Terms & Concepts

●  

Light Combat Helicopter - Edukemy Current Affairs

●  

Vande Bharat 2.0 - Edukemy Current Affairs

●  

Stockholm Convention - Edukemy Current Affairs

●  

Stagflation - Edukemy Current Affairs

3   Editorial of the day

●  

Rationale behind raising interest rates: The Hindu

●  

Minimizing Farm Chemicals: Urgent IE

4   Case Study of the Day

●  

The Man of Peace: Lal Bahadur Shastri

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News Snapshot

Tokenisation for credit and debit card transactions


In news

  • The Reserve Bank of India’s card-on-file (CoF) tokenisation norms have kicked in from October 1, which aim at improved safety and security of card transactions.

About Tokenisation

  • Tokenization is the process of replacing actual card information with a one-of-a-kind alternate code called the "token," which must be distinct for the card, token requester (the organization that accepts customer requests for card tokenization and forwards them to the card network to issue a corresponding token), and the device.

About Card-on-File

  • A CoF transaction is one in which the cardholder has given permission for the merchant to keep their Mastercard or Visa payment information on file.
  • The cardholder then gives the same Merchant permission to bill the stored Mastercard or Visa account for the cardholder.
  • In most cases, supermarket chains, airlines, and e-commerce businesses keep card information in their system.

How did India decide to carry out Tokenisation?

  • The RBI ordered the use of card-on-file (CoF) tokenization as an alternative in September 2021, banning retailers from storing client card information on their servers with effect from January 1, 2022.
  • The RBI decided to stop extending these the implementation of these rules from October 1 after several extensions.
  • Thus, from now on Merchants, payment aggregators, and payment gateways will thus no longer be able to keep critical customer credit and debit card information, such as the three-digit CVV number and expiration date, for any purchases made online or through mobile apps.

How will Tokenisation work?

  • By starting a request on the app that the token requester provides, the owner of a debit or credit card can have their card tokenized.
  • The token requester will send the request to the card network, which will provide a token matching the combination of the card, the token requester, and the device with the approval of the card issuer.
  • The customer will not be charged for availing the tokenisation service.
  • Earlier, the facility for card tokenisation was available only for mobile phones and tablets of interested card holders.
  • The RBI then made the decision to expand the scope of tokenization to encompass consumer devices like as laptops, desktops, wearables (wrist watches, bands, etc.), and Internet of Things (IoT) devices as a result of an increase in tokenization volume.

Who can offer Tokenisation service?

Only the authorized card network is capable of performing tokenization, and only authorised card network should be able to recover the original Primary Account Number (PAN).

Adequate safeguards have to be put in place to ensure that PAN cannot be found out from the token and vice versa, by anyone except the card network.

RBI has emphasised that the integrity of the token generation process has to be ensured at all times.

How do customers gain from Tokenisation?

  • A tokenised card transaction is considered safer as the actual card details are not shared with the merchant during transaction processing.

  • Actual card data, token and other relevant details are stored in a secure mode by the authorised card networks.
  • The token requestor cannot store Primary Account Number (PAN), or any other card details.
  • Card networks are also mandated to get the token requester certified for safety and security that conform to international best practices/globally accepted standards.
  • It streamlines the subscription-based procedures by enabling businesses to accept recurring payments and other payment methods in a secure setting.

 Is Tokenisation of a Card mandatory?

  • No, a customer can choose whether or not to let his / her card tokenised.
  • Those who do not wish to create a token can continue to transact as before by entering card details manually at the time of undertaking the transaction.

Difference between Encryption and Tokenisation

Encryption

Tokenisation

  • Used to transform plain text into cipher text mathematically using an encryption algorithm
  • Used to generate a random token value for plain text and then stores the mapping in a database
  • Used for structured and unstructured data fields
  • Used for structured data fields, like card details
  • Easy to scale to large data volumes using a small encryption key
  • Difficulty may arise to scale securely as database size increases
  • Comes with a tradeoff of lower strength with the format-preserving encryption schemes
  • Easy to maintain format without losing strength of data security
  • Make the original data leaves the organization but in encrypted format
  • Does not require the original data to leave the organization, which satisfies various compliance requirements

Content Source Link:

  • https://indianexpress.com/article/explained/explained-economics/tokenisation-for-credit-and-debit-card-transactions-what-is-it-and-how-does-it-help-you-8184678/,

Image Source Link:

  • https://www.livemint.com/money/personal-finance/the-coming-disruption-over-card-tokenization-11635873358670.html,

 

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Keywords: Tags: GS Paper 3: Indian Economy, Banking Sector & NBFC’s
News Snapshot

Internal democracy in political parties


In news

The Election Commission (EC) of India is likely to focus on the issue of internal democracy within the political parties soon, as it is currently taking action against registered unrecognised political parties (RUPPs) for failing to comply with norms over the past few months.

About Internal Democracy

  • Internal democracy in political parties, also known as intra-party democracy, refers to the level and methods of including party members in the decision making and deliberation within the party structure.
  • This process is usually known to nurture citizens’ political competencies and/or producing more capable representatives, which in turn ensures that the party produces better policies and political programmes.

Legality of Internal democracy in India

  • At present, there is no law on which elections can be mandated within political parties.
  • The phrase “political party” [was] nowhere mentioned or described in our Constitution.
  • The definition of a political party for the first time entered through the anti-defection law in 1985.
  • Further, All rules and regulations apply more to candidates than to political parties in India.
  • The courts have made an observation that nothing in Article 324 of the Constitution, or Section 29(A) of the Representation of the People Act, 1951 tells us that the ECI can actually regulate internal structures, organisations or elections of the party.
  • In this perspective, the Government by an executive order can make the provision in political parties to conduct organisational elections.
  • Further, the EC does not question the result or the procedure the parties followed.
    • The EC expects political parties to abide by their constitution, a copy of which is also submitted to the commission when the parties are registered.

Importance of Internal Democracy in political parties

  • Transparency: The consensus among party members, will allow proper ticket distribution and candidate selection.
  • Check Criminalisation of Politics: Democratic principle inside party would reduce the focus of decisions on winnability of the candidate, and would prevent people from muscle & money background from entering politics.
  • Ensure better choice to Citizens: The lack of accountability, renders the citizens with limited choice to choose from, with parties becoming closed autocratic structures. Hence, the need to ensure the right of choice to citizens.
  • For more informed decision making: Internal Democracy would provide for an election at each level, thereby allowing for creation of power centres at different levels, eventually leading to a better decision making process.

 How to achieve Internal Democracy in Political parties?

  • Internal elections for leadership positions within the party.
    • This should be carried out with debates, campaigns, meetings and discussions within the party.
  • State funding of political parties to bring in accountability within political parties.
    • An objective formula of parties receiving funding, in accordance with the number of polls they receive could bring in equity among parties.
  • ECI re-interpreting the existing laws, and assuming role of regulator.
    • ECI should bring in compliant measures, so that the parties regularly hold organisational elections, inform ECI of change in office-bearers, and periodically submit documents of expenditure.

Source:

  • Should the ECI insist on inner-party elections?
  • For internal democracy: On Election Commission of India rejecting notion of ‘leader for life’ in political parties
  • Should the ECI insist on inner-party elections?

Image source:

  • https://www.frontiersin.org/files/Articles/850607/fpos-04-850607-HTML/image_m/fpos-04-850607-g001.jpg
  • https://mobile.twitter.com/Int_IDEA/status/980694569007439872/photo/1

 

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Keywords: GS2: Appointment to various Constitutional Posts, Powers, Functions and Responsibilities of various Constitutional Bodies: Internal Democracy, Political parties
News Snapshot

Unlawful Activities (Prevention) Act (UAPA)


Centre bans PFI

In News:

PFI and its affiliates have been prohibited for five years on grounds of threat to internal security.

About the News:

  • The Ministry of Home Affairs (MHA) has recently banned Popular Front of India (PFI) declaring it an 'unlawful association' under UAPA.

  • The Unlawful Activities (Prevention) Act (UAPA), 1967 defines any association as unlawful which for its objectives pursue any activity that is punishable under sections 153A and 153B of the IPC — which is promoting enmity between groups and making imputations, assertions prejudicial to national integration.
  • With this, the PFI has been added to the list of 42 banned terrorist organisations under Section 35 of the UAPA.
  • Except the SDPI which is the political arm of the PFI, the government has also banned the associate organisations of PFI including the Rehab India Foundation (RIF) and Campus Front of India, for five years
  • Previously, the PFI and its associates or affiliates or fronts have been blamed several times for indulging in militancy and activities prejudicial to the integrity, sovereignty, security as well as public peace and communal harmony of the country.

Major highlights:

  • About: In an attempt to curb the nefarious activities of the PFI, the MHA declared the PFI an “unlawful association” along with “its associates or affiliates or fronts.
  • Impact: The declaration by the MHA allows law enforcement agencies to freeze bank accounts, seize assets of these organisations – in short, choke their funding and activities.

  • Ban on membership: Under the Section 10 of the UAPA, being a member of the banned organisation i.e., PFI would be punishable with an imprisonment of two years and may extend to life imprisonment or even death in certain circumstances.
  • Ban on funding: Under section 7 of the act, any person who takes part in meetings of such association; or contributes to, or receives or solicits any contribution for the purpose of, such association; or in any way assists the operations of such association, shall be punishable with imprisonment for a term which may extend to two years, and shall also be liable to fine”.
  • Search and arrest: It give powers to law enforcement agencies to search premises of such organisations and to examine their books of account.
  • Power to declare: Under the Section 8 of the UAPA Centre has been powered to “notify any place which in its opinion is used for the purpose of such unlawful association”. The “place” here includes a house or a building, or a part thereof, or even a tent or a vessel.

Need for ban:

  • Grim history: Some of the PFI’s founding members are leaders of the SIMI and the PFI also has linkages with Jamaat-ul-Mujahideen Bangladesh (JMB), both of which are proscribed organisations.
  • Terror links: There had been a number of instances of international linkages of PFI with Global Terrorist Groups like Islamic State of Iraq and Syria (ISIS).
  • Planned radicalisation: The PFI and its associates or affiliates or fronts have been working covertly to increase radicalisation of one community by promoting a sense of insecurity in the country.
  • Shadow organisation: The PFI and its associates or affiliates or fronts operate openly as socio-economic, educational and political organisations but they have been pursuing a secret agenda including radicalisation, working towards undermining the concept of democracy, and show sheer disrespect towards the constitutional authority and constitutional set-up of the country.

Source:

  • https://indianexpress.com/article/cities/delhi/mha-bans-pfa-uapa-live-updates-8177059/

 

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Keywords: General Paper 2, Polity and Governance/ GS Paper 3, Security
Terms & Concepts

Light Combat Helicopter - Edukemy Current Affairs


  • Context: The indigenous Light Combat Helicopter (LCH), capable of destroying enemy air defence, conducting counter insurgency strikes and much more, has been formally inducted into the Indian Air Force (IAF)
  • LCH is a trulyindigenous (‘Make in India’) product built with private industry participation.
  • It is a new addition to Hindustan Aeronautics Limited (HAL's) helicopter division.This twin-engine helicopter is a dedicated combat helicopter of 5 to 8-tonne class.
  • The LCHincorporates advanced technologies and stealth features for effective combat roles and is designed to carry out roles such as destruction of enemy air defence, counterinsurgency, search and rescue, anti-tank, Counter Surface Force Operations etc.
  • LCH is the only attack helicopter in the world which can land and take off at an altitude of 5,000 meters with a considerable load of weapons and fuel, meeting the specific requirements laid out by the Indian Armed Forces.
  • It is effective even in temperatures ranging from minus 50 degrees Celsius on snow peaks to 50 degrees Celsius in the desert.
  • LCH will eventually be deployed along the Line of Actual Control with China.

Source:

  • https://indianexpress.com/article/explained/what-is-the-light-combat-helicopter-being-inducted-into-the-air-force-today-8186589/

Image source:

  • https://indianexpress.com/article/explained/what-is-the-light-combat-helicopter-being-inducted-into-the-air-force-today-8186589/

 

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Keywords: GS Paper 3, Security, Light Combat Helicopters
Terms & Concepts

Vande Bharat 2.0 - Edukemy Current Affairs


  • Context: PM has flagged off new Vande Bharat Express between Gandhinagar and Mumbai at Gandhinagar Station in Gujarat.
  • This train, the third in the Vande Bharat series, is being dubbed ‘Vande Bharat 2.0’, because of certain upgrades it has received over its predecessors, the two existing trains New Delhi - Varanasi and New Delhi - Shri Mata Vaishno Devi Katra.

  • The revised version of the semi-high-speed train
    • can reach a top speed of 160 kmph in 129 seconds from a complete stop and it may reach high speeds thus, cutting the travel time by 25% to 45%. The current version is 38 tonnes lighter.
    • The train will resist floods of up to 650 mm in height (about 2 ft), up from the previous 400 mm.
    • Indigenously developed, KAVACH (Train Collision Avoidance System) is used to increase operational safety.
    • The train has been designed to increase Indian Railways' Green footprint by dispensing with the power cars and saving about 30 per cent of electricity with the advanced regenerative braking system.
    • Most of the parts of the trains are "Made in India" except for a few small parts.
  • India has a mission to roll out 400 Vande Bharats. By August 2023,there will be 72 more such trains, taking the total to 75.

SOURCES:

  • https://indianexpress.com/article/explained/vande-bharat-train-pm-modi-new-features-upgrades-8181593/
  • https://economictimes.indiatimes.com/industry/transportation/railways/vande-bharat-express-all-you-need-to-know-about-newly-made-semi-high-speed-train/articleshow/94540329.cms

IMAGE SOURCE:

  • https://www.financialexpress.com/infrastructure/railways/new-vande-bharat-train-ready-to-be-rolled-out-check-exciting-new-features-of-indias-semi-high-speed-train/2630362/

 

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Keywords: GS Paper 3, economy
Terms & Concepts

Stockholm Convention - Edukemy Current Affairs


  • Context: The 18th meeting of the Persistent Organic Pollutant review committee to the Stockholm Convention has recently concluded its review of four of the five chemicals under consideration.
  • It is aglobal treaty to protect human health and the environment from Persistent Organic Pollutants (POPs).
  • It was opened for signature in 2001 in Stockholm (Sweden) and became effective in 2004.

  • POPs are listed in various Annexes to the Stockholm Convention after thorough scientific research, deliberations and negotiations among member countries.
  • Objectives:
    • Support the transition to safer alternatives.
    • Target additional POPs for action.
    • Clean up old stockpiles and equipment containing POPs.
    • Work together for a POPs-free future.
  • India ratified the Stockholm Convention in 2006as per Article 25(4), which enabled it to keep itself in a default "opt-out" position such that amendments in various Annexes of the convention cannot be enforced on it unless an instrument of ratification/ acceptance/ approval or accession is explicitly deposited with UN depositary.
  • The convention calls to ban nine of the dirty dozen chemicals(key POPs), limit the use of DDT to malaria control, and curtail inadvertent production of dioxins and furans. The convention listed twelve distinct chemicals in three categories:
    1. Eight pesticides(aldrin, chlordane, DDT, dieldrin, endrin, heptachlor, mirex and toxaphene)
    2. Two industrial chemicals(poly chlorinated biphenyls and hexachlorobenzene)
    3. Two unintended by-products of many industrial processes involving chlorinesuch as waste incineration, chemical and pesticide manufacturing and pulp and paper bleaching (poly chlorinated dibenzo-p-dioxins and dibenzofurans, commonly referred to as dioxins and furans).

Source:

  • https://www.downtoearth.org.in/news/pollution/stockholm-convention-to-take-final-call-on-5-persistent-organic-pollutants-85199

Image source:

  • https://prezi.com/p/ioekixy3dq7e/stockholm-convention/

 

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Keywords: GS Paper 3, Environment and ecology
Terms & Concepts

Stagflation - Edukemy Current Affairs


  • Context: The World Bank chief has warned ‘perfect storm’ of stagflation and global recession: ‘A tough reality confronts the global economy’.
  • Stagflation is a term that was introduced to the public in the 1970s. It refers to a unique period in which unemployment and inflation are high but economic growth stalls.

  • It can be attributed to extreme shock in the supply of food or energy, a quick expansion of the money supply in a country, and poor economic policies introduced by the government.
  • Stagflation is rarer than a recession as inflations occurs naturally in our economic cycle.
  • Experts say stagflation, is a very real risk—especially for developing economies.
  • With fears that the cost of borrowing will be going up, companies will have to start laying off employees, which would hurt the labour market and possibly bring us into a recession.
  • Once stagflation starts, it’s extremely difficult to stop. When economic growth is slow or a recession hits, the top banker can alter monetary policy to encourage spending in a bid to stimulate sluggish economies, however, during stagflation, lowering the interest rates to encourage spending will worsen inflation, ultimately making matters worse.
  • Stagflation creates a crunch for businesses, as they often experience labour issues with employees seeking higher wages in the face of increasing costs. And they, can’t afford to raise wages when sales are down.
  • In a typical scenario, consumers can’t spend, businesses have fewer customers, and the cycle repeats.

Source:

  • https://fortune.com/2022/09/29/world-bank-david-maplass-warns-prolonged-stagflation-global-recession/amp/

IMAGE SOURCE:

  • https://www.oilandgas360.com/what-is-stagflation-why-does-it-matter-for-penny-stocks/

 

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Keywords: GS Paper 3, economy, Stagflation
Editorial of the day

Rationale behind raising interest rates: The Hindu


Essence - The editorial discusses the present issue of inflation and its link with climate change, depreciating rupee, etc. It links currency depreciation with the imported inflation, its effect on export competitiveness and current account deficit. It also mentions that the present inflation trends is not likely to be tamed in short run, as USA is likely to continue with higher interest rate for at least next couple of years to come. Later it has warned about the declining wheat stock which will lead to various other issues like increase in MSP which will ultimately spill over to the market price. It also discusses about the financial difficulty faced due to PMGKAY and food security Act 2013 in light of declining food production due to climate change.

Towards the end, it recommends rationalisation of various subsidies which has bearing on climate change and GHG emissions.

Why should you read this editorial?

  • To know about various factor which is not letting RBI to control the CPI based inflation.
  • To know about the role of climate change in inflation.

Source:

  • https://indianexpress.com/article/opinion/columns/the-link-between-inflation-and-climate-change-8186510/

 

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Keywords: GS3, Indian Economy
Editorial of the day

Minimizing Farm Chemicals: Urgent IE


Essence:

The article has a strong emphasis on minimizing the usage of chemical fertilizers on farms and offers solutions. First, the farm chemical input sector's business model needs to change in order for it to transition into a service sector. Two, store owners should immediately notify the government of every sale of agricultural pesticides.

Three, each farm input package utilized on the farm should be marked with QR codes so that they can be traced back to the manufacturing floor. These actions will make it possible for more focused and effective agricultural advisory and grievance redressal. Four — an impartial regulator When regulatory permission is granted, safety data supplied by the industry is essentially accepted at face value. However, volunteering cannot replace regulation.

Why should you read this editorial?

  • To understand the impact of chemical fertilizers and pesticides on the farm ecosystem.
  • To understand the ways in which the use of chemicals in farms can be minimized.

Source:

  • https://indianexpress.com/article/opinion/columns/let-the-land-heal-why-minimising-chemical-farm-input-has-become-an-urgent-necessity-8183413/

 

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Keywords: GS Paper 3, agriculture, Organic farming
Case Study of the Day

The Man of Peace: Lal Bahadur Shastri


Background:

On the occasion of Lal Bahadur Shastri’s birth anniversary, the Indian Prime Minister and President paid tributes to the former PM at Vijay Ghat.

About Lal Bahadur Shastri

  • Lal Bahadur Shastri, the 2nd Prime Minister of India was born on 2nd October in 1904, and this year marks his 118th birth Anniversary.
  • After completing his graduation, Lal was awarded the title of "Shastri" as a part of his bachelor's degree by Vidya Peeth.
  • His participation before India's Independence include:
    • In the 1920s, Shastriji became an active member of the Indian Independence Movement, in which he joined the non-cooperation movement.
    • He was sent to jail by the British for his participation in the Salt Satyagraha (1930), and Quit India Movement (1942).
  • After India achieved independence Lal Bahadur Shastri's exceptional worth was well acknowledged.
    • He was appointed Parliamentary Secretary in his home state of Uttar Pradesh in 1946, and he then moved to New Delhi in 1951 and held several positions in the Union Cabinet.
  • Later, Shastriji took office as India's prime minister 1964, and his achievements include:
    • He advocated for the White Revolution, and assisted the Amul milk cooperative in Gujarat and founded the National Dairy Development Board.
    • He supported the Green Revolution, which increased food grain productivity in states like Haryana, Punjab, and Uttar Pradesh.
    • He also gave the slogan "Jai Jawan Jai Kisaan".
    • He signed the Tashkent Declaration in 1966 with Pakistan President, to end the 1965 war.
  • Eventually, Lal Bahadur Shastri died due to a heart attack in 1966, but his legacy continues to thrive, as a humble, tolerant leader with great inner strength who understood the language of the common man.
    • Also, he earned a reputation as a man of exceptional integrity and skill.
  • After his passing, he was awarded the Bharat Ratna in 1966, making him the first posthumous laureate of this prestigious award.

Quote: “Discipline and united action are the real source of strength for the nation.” - Lal Bahadur Shastri

Source:

  • Lal Bahadur Shastri Jayanti 2022: Special things about the highly disciplined 2nd PM of India

Image source:

  • https://in.pinterest.com/pin/577305245978560327/

 

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Keywords: GS1, Modern Indian History from about the middle of the eighteenth century until the present- significant personalities, Lal Bahadur Shastri
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