Monetary Policy Committee (MPC)
Why in News: The Central Government has recently appointed new members to the monetary policy committee, effective immediately.
About the Monetary Policy Committee (MPC)
- Establishment: The MPC was created following a Memorandum of Understanding between the government and the Reserve Bank of India (RBI) regarding the new inflation-targeting monetary policy framework.
- Legal Framework: The Finance Act, 2016 amended the Reserve Bank of India Act, 1934, establishing a statutory and institutional framework for the MPC.
- Composition: According to Section 45ZB of the amended RBI Act, 1934, the central government can form a six-member MPC.
- Policy Rate Setting: The MPC is responsible for determining the benchmark policy rate (repo rate) to control inflation within the specified target level.
- Replacement of Previous Committee: The MPC replaced the former Technical Advisory Committee.
- Members: The MPC consists of six members:
The RBI Governor (Chairperson)
The RBI Deputy Governor in charge of monetary policy
One official nominated by the RBI Board
Three members representing the Government of India
- Term: External members serve a four-year term.
- Quorum: A quorum for meetings requires four members, including at least one of the following: the Governor or the Deputy Governor who is a member of the MPC.
- Voting: Decisions are made by majority vote; in case of a tie, the RBI Governor casts the deciding vote.
- Binding Nature: The decisions made by the MPC are binding on the RBI.
- Assistance: The RBI’s Monetary Policy Department (MPD) supports the MPC in formulating monetary policy.
Lake Prespa
Why in News: Experts report that out of the 450 hectares of Little Prespa Lake in Albania, at least 430 hectares have either turned into swamps or completely dried up.
About Lake Prespa
- Historical Significance: Lake Prespa is recognized as one of the oldest tectonic lakes in Europe and holds the title of the highest tectonic lake on the Balkan Peninsula.
- Geological Features: The lake is situated at the convergence of three significant geological formations: a granite massif to the east, a karstic massif belonging to Galicica to the west, and Suva Gora to the south. The area is noted for its diverse geological history, featuring rocks from the ancient Paleozoic era to sediments from the younger Neogene period.
- Lake Composition: Lake Prespa comprises two main bodies: the Great Prespa Lake, which spans Albania, Greece, and the Republic of Macedonia, and the Little Prespa Lake.
- Geographical Distribution: The majority of Little Prespa Lake, also referred to as Small Lake Prespa, is located in Greece, with only its southern tip extending into Albania.
- Environmental Challenges: The lake has faced significant environmental challenges due to rising temperatures, increasingly mild winters with reduced snowfall, and a lack of precipitation.
Pusa-44 paddy variety
Why in News: The well-known Pusa-44 rice variety is popular in Punjab, but it is also leading to several environmental problems.
About PUSA-44 Rice Variety
- Definition: Pusa-44 is a high-yielding variety of paddy.
- Developed by: The Indian Agricultural Research Institute (IARI) in New Delhi.
- Released Year: It was launched for large-scale cultivation in 1993 and has become particularly popular among farmers in Punjab.
Key Characteristics
- Growth Duration: Pusa-44 requires approximately 155-160 days from sowing to harvesting.
- Yield Potential: It yields an impressive 35-36 quintals per acre, with some farmers achieving yields as high as 40 quintals. This is significantly higher than its closest competitor, PR-126, which produces about 30-32 quintals but matures faster in 123-125 days.
- Economic Viability: The increased yield results in a financial benefit of approximately ₹9,280-11,600 per acre, based on a minimum support price of ₹2,320 per quintal for ‘Grade A’ paddy.
Alternatives to PUSA-44 Rice Variety
- Phasing Out: The Central and state governments are considering the discontinuation of Pusa-44.
- New Variety: IARI has introduced a new variety called Pusa-2090.
- Benefits of Pusa-2090: This variety matures faster (120-125 days) while maintaining comparable yields (34-35 quintals per acre). It aims to reduce stubble burning and enhance water efficiency by requiring fewer irrigations.
Cyber slavery
Why in News: Recent reports reveal that more than 30,000 Indians are presently trapped in ‘cyber slavery’ in nations such as Cambodia, Thailand, Myanmar, and Vietnam.
Report on Cyber Slavery
- Travel Statistics: Data from the Bureau of Immigration, under the Ministry of Home Affairs (MHA), shows that from January 2022 to May 2024, 73,138 Indians traveled to Cambodia, Thailand, Myanmar, and Vietnam on visitor visas.
- Return Status: Out of these, 29,466 Indians have not yet returned.
- Trapped Individuals: The report highlights that some Indians are ensnared in “cyber slavery” in certain Southeast Asian countries.
About Cyber Slavery
- Definition: Cyber slavery refers to situations where individuals are often enticed by the promise of well-paying jobs in foreign countries but are then coerced into participating in illegal online activities, such as cyber fraud, hacking, or scamming.
- Loss of Autonomy: Upon arrival, their passports are confiscated, and they are frequently held in guarded facilities with limited freedom, while their earnings are withheld.
- Control Tactics: Victims are subjected to threats of violence or potential reporting to authorities to maintain control over them.
- Involvement in Fraud: A significant number of these individuals are engaged in various types of digital fraud, including investment scams and online dating scams.
- Financial Impact: Reports indicate that many of these scams have led to considerable financial losses for victims in India, as the perpetrators often communicate in the same language. It is estimated that around ₹800 crore has been lost by Indians due to fraudulent activities carried out by these cyber slaves.