Prelims Nuggets

Reforms needed for Multilateral Development Banks

Context: As per the Centre for Global Development’s Tracker (CGD), World Bank and six other multilateral banks (MDBs) have made good progress in integrating global challenges like climate change into their agendas, more reforms are needed for better functioning of these institutions.

More information:

The tracker assessed progress at seven multilateral development banks (MDBs) on twenty-eight specific items under five categories:
- using capital more efficiently
- expanding capital
- adding global challenges to their mandates
- mobilising private finance
- making country engagements more efficient.
Results found by the tracker:
- Highly uneven results among the institutions and no single MDB excelled in all reform categories.
- World Bank Group was at some stage of pursuing 96 per cent of the agenda items.
- European Bank for Reconstruction and Development was close behind with 93 per cent.
- Asian Development Bank and the Inter-American Development Group had taken action on half the agenda.
On Climate challenges:
- The US, the World Bank’s biggest shareholder and other countries are pushing the bank and its sister development banks to focus on climate change alongside poverty reduction and development and to take on more risk to expand their lending.
- Developing and emerging economies need $2.4 trillion per year to meet global climate challenges (far exceeding the amount of financing now available).
- As per the CGD, banks had largely recognized the urgency and importance of addressing climate change within the financial sector and all seven MDBs assessed had either included global challenges in their mandates or were in the process of doing so.
In October, 2023, G20 finance ministers and central bank governors at a meeting in Marrakech (Morocco) have taken up recommendations suggested by the second volume of the Independent Expert Group on Strengthening Multilateral Development Banks.

What are Multilateral Development Banks (MDBs)?

A multilateral development bank (MDB) is an international financial institution established by two or more countries with the primary objective of promoting economic advancement in low income and developing nations.
These MDBs comprise member countries that represent a mix of developed and developing nations.
MDBs extend financial support in the form of loans and grants to their member nations.
Multilateral development banks operate under the framework of international legal principles.

Objectives

While commercial banks primarily aim to generate profits through loans and other financial services, Multilateral Development Banks (MDBs) makes grants and affordable loans to enhance the economic conditions of impoverished or developing nations.
MDBs extend non-concessional financial support to middle-income countries' governments, private sector enterprises in developing countries, and select governments of low-income nations.
MDBs supply concessional aid, including grants and low-interest loans, to low-income country governments.
Focus is on development-oriented goals, such as eradicating extreme poverty and reducing economic disparities.
Provide loans at minimal or no interest rates or issue grants to finance projects in infrastructure, energy, education, environmental sustainability, and other sectors that foster development.

Evolution of MDBs

At the end of World War II, representatives from 44 nations convened in Bretton Woods, USA, to establish a new framework for international cooperation and post-war reconstruction.
This meeting in 1944 gave rise to the establishment of the International Monetary Fund (IMF) and the World Bank Group (WBG).
The World Bank assumed the responsibility of providing financial aid to facilitate the post-war rebuilding and economic progress of underdeveloped nations.
World Bank Group's role has evolved, and presently, it consists of various institutions:
- International Bank for Reconstruction and Development (IBRD), which extends loans to both low- and middle-income countries (LICs and MICs);
- International Development Association (IDA), which provides loans to Low Income Countries;
- International Finance Corporation (IFC), support to the private sector;
- Multilateral Investment Guarantee Agency (MIGA), which encourages private enterprises to invest in foreign countries;
- International Centre for Settlement of Investment Disputes (ICSID) for resolving disputes.

Types of (MDBs):

The first category comprises the largest and most renowned institutions, which offer loans and grants. Example: Inter-American Development Bank (IDB), established in 1959.
The second category of multilateral development banks is formed by the governments of low-income countries, which then collaborate to borrow collectively through the MDB, enabling them to secure more favourable interest rates. Example: Caribbean Development Bank (CDB), established in 1969.

Challenges for multilateral development banks

Within the realm of Multilateral Development Banks (MDBs), the major share of responsibility for extending financial support to emerging and developing economies (EDEs), predominantly rests with the World Bank (WB) system.
The degree of competition and cooperation within the realm of MDBs is currently suboptimal, leaving significant room for improvement, particularly concerning customer service and the ease of borrowing.
Regional MDBs often find their autonomy limited, particularly when their major shareholders overlap, resulting in the formulation of similar policies.
MDB governance and the distribution of country voting shares present considerable challenges when seeking to increase capital. Additionally, criticisms are frequently directed at the bureaucratic procedures within MDBs, which can hinder project implementation and decision-making.
The original purpose of Multilateral Development Banks was to address challenges of the period after Second World War. The contemporary world introduces new concerns related to global public goods, climate change, inequality and pandemics.
Another issue pertains to the absence of adequate representation, influence, and voice for developing countries in the decision-making processes of MDBs. Ensuring transparency, accountability, and legitimacy in their actions and outcomes remains a significant challenge.
MDBs grapple with constraints in their resources as they contend with the increasing demands for development financing. This is particularly evident in areas like climate change mitigation, adaptation, and infrastructure development.
Encouraging private sector investments in development projects poses challenges. MDBs must create an environment conducive to attracting private capital by addressing risks and offering financial incentives for private sector engagement.
MDBs face the challenge of addressing climate change and supporting sustainable development initiatives. This necessitates the incorporation of climate considerations into their policies, strategies, and project financing decisions.

Reforming Multilateral Development Banks

The independent expert group has proposed a comprehensive triple agenda for Multilateral Development Banks (MDBs). This agenda focuses on three core areas:

Eliminating Extreme Poverty: MDBs should prioritize initiatives aimed at reducing and ultimately eliminating extreme poverty.
Tripling Sustainable Lending Levels by 2030: The report recommends increasing annual sustainable lending levels to $390 billion by the year 2030.
Flexible Funding Mechanisms: MDBs should create flexible funding mechanisms to engage investors actively supporting MDB goals.

The recommendations are:

Encouraging Private Sector Engagement: The report emphasizes the importance of private sector engagement. It suggests that MDBs should break away from limited operational interaction between their private financing arms and their sovereign activities, encouraging a more collaborative approach with the private sector.
Optimizing Balance Sheets and Cooperation: The report underscores the significance of optimizing balance sheets and enhancing cooperation among MDBs. These steps are seen as critical for achieving the objectives of the triple agenda.
Leveraging Private Capital: Currently, MDBs leverage only $0.6 in private capital for every dollar they lend from their own resources. The expert group recommends that MDBs aim to at least double this figure to attract more private investment.
Establishment of a Global Public Goods (GPGs) Funding Mechanism: The report proposes the creation of a funding mechanism for global public goods (GPGs). This innovative mechanism has the potential to unlock an additional annual lending capacity, estimated at a minimum of $20 billion. To achieve this, a flexible legal and institutional framework needs to be established.
Focus on "Country Platforms": G20 expert panel recommends that MDBs shift their focus from individual projects to helping countries build and operationalize "country platforms." These platforms are voluntary country-level mechanisms set out by respective governments to foster collaboration among development partners based on shared strategic vision and priorities.
Co-Creation of Multi-Year Programs: The expert group suggests that MDBs should prioritize programs identified by national governments with a sectoral focus and long-term transformation plans. This approach aligns MDBs more closely with the developmental priorities of individual nations and encourages the co-creation of multi-year programs.
Independent Assessment Mechanism: The expert panel recommends that G20 finance ministers establish a mechanism to advise and independently assess the first-year implementation of the proposed roadmap, ensuring transparency and accountability in the reform process.
Recommendations for Operational Improvements: Several smaller, well-defined improvements are suggested, including board monitoring of new targets, changing procedures, easing the utilization process, improving managerial incentives for small ticket lending, and providing training for giving warranties.
Building Bankable Projects: Countries are encouraged to create bankable projects that can compete for finance on the country platforms. Technical support can help in developing granular asset specifics, measurement, disclosure, and appropriate incentives. Transparency and competition are key factors in reducing the impact of geopolitics in project decisions.
Green Concessional Lending Arm: The report proposes the creation of a green concessional lending arm for the World Bank (WB) with more equitable voting shares, which could make it easier to raise capital for environmentally sustainable projects.

Other Recommendations:

Reform and Incentive Structures, which may involve implementing first loss guarantees, establishing realistic return targets, and improving risk management. Additionally, incentive structures should be designed to foster innovation and adaptability.
Global South Representation to should ensure that the voices and perspectives of the Global South, including countries such as India, are not only heard but also advocated for in decision-making processes. This ensures a more inclusive and equitable approach to their operations.

New royalty rates for strategic minerals

Context: The Union Cabinet approved royalty rates for lithium, niobium, and Rare Earth Elements (REEs). For lithium and niobium a royalty rate of 3% each has been fixed, while for Rare Earth Elements (REEs), the rate has been set at 1%.

Strategic / Critical Minerals

Critical minerals are those minerals that are essential for economic development and national security. The lack of availability of these minerals or concentration of extraction or processing in a few geographical locations may lead to supply chain vulnerabilities and even disruption of supplies.
Critical minerals are the foundation on which modern technology is built. From solar panels to semiconductors, and wind turbines to advanced batteries for storage and transportation, the world needs critical minerals to build these products. Simply put, there is no energy transition without critical minerals, which is why their supply chain resilience has become an increasing priority for major economies.

Critical / Strategic Mineral in India and India’s Dependency on Imports

Lithium

It is a soft, silvery metal. It has the lowest density of all metals. It reacts vigorously with water.
The most important use of lithium is in rechargeable batteries for mobile phones, laptops, digital cameras and electric vehicles. Lithium is also used in some non-rechargeable batteries for things like heart pacemakers, toys and clocks.
Lithium metal is made into alloys with aluminium and magnesium, improving their strength and making them lighter. A magnesium-lithium alloy is used for armour plating. Aluminium-lithium alloys are used in aircraft, bicycle frames and high-speed trains.
Lithium oxide is used in special glasses and glass ceramics. Lithium chloride is one of the most hygroscopic materials known and is used in air conditioning and industrial drying systems (as is lithium bromide).
Lithium stearate is used as an all-purpose and high-temperature lubricant. Lithium carbonate is used in drugs to treat manic depression, although its action on the brain is still not fully understood. Lithium hydride is used as a means of storing hydrogen for use as a fuel.

Niobium

A silvery metal that is very resistant to corrosion due to a layer of oxide on its surface.
Niobium is used in alloys including stainless steel. It improves the strength of the alloys, particularly at low temperatures. Alloys containing niobium are used in jet engines and rockets, beams and girders for buildings and oil rigs, and oil and gas pipelines.
This element also has superconducting properties. It is used in superconducting magnets for particle accelerators, MRI scanners and NMR equipment.
Niobium oxide compounds are added to glass to increase the refractive index, which allows corrective glasses to be made with thinner lenses.

Rare Earth Elements

The 17 rare earth elements (REE) include the 15 Lanthanides (atomic number 57 — which is Lanthanum — to 71 in the periodic table) plus Scandium (atomic number 21) and Yttrium (39). REEs are classified as light RE elements (LREE) and heavy RE elements (HREE).
Some REEs are available in India — such as Lanthanum, Cerium, Neodymium, Praseodymium and Samarium, etc. Others such as Dysprosium, Terbium, and Europium, which are classified as HREEs, are not available in Indian deposits in extractable quantities. Hence, there is a dependence on countries such as China for HREEs, which is one of the leading producers of REEs, with an estimated 70 per cent share of the global production.
The rare earth elements are used in Electric vehicles. They are used in motors and not the batteries. These EVs consist of a permanent magnet motor. The magnets used in these motors are made with REEs such as neodymium, terbium, and dysprosium.

Singareni Collieries belongs to Telangana, rules Home Ministry

Context: In a major relief to Telangana, the Union Ministry of Home Affairs has ruled that the Singareni Collieries Company Limited (SCCL) belongs to Telangana.

Background:

A stalemate prevailed over the division of assets pertaining to the SCCL between the two States.
The Telangana State government has been firm that the company belonged to it on the basis of location and this has been confirmed by the Attorney General.
The Andhra Pradesh government has raised objections to the Attorney General’s opinion. It wanted to conclude that SCCL was an interstate company.

The Singareni Collieries Company Limited (SCCL)

It is a Government coal mining company jointly owned by the Government of Telangana and the Government of India on a 51:49 equity basis.

The Singareni coal reserves stretch across 350 Km of the Pranahita – Godavari Valley of Telangana with a proven geological reserve aggregating to a whopping 8791 million tonnes.
SCCL is currently operating 18 opencast and 24 underground mines in 4 districts of Telangana

What is Rail Gauge?

Rail gauge is a fundamental concept in the railway industry. It refers to the spacing of the rails on a railway track and is measured between the inner faces of the load-bearing rails.

Rail Gauge

The gauge determines the width and stability of the railway track, which in turn impacts the size and design of the rail vehicles that can operate on the track.

Over 60% of the world's railway network uses the standard gauge of 1435 mm.

India has four distinct kinds of railway gauges:

Broad gauge
Meter gauge
Narrow gauge
Standard gauge (specifically used for the Delhi Metro)

Broad gauge:

Broad gauge is a railway track configuration where the separation between the two tracks in these railway gauges is 1676 mm.
- Any gauge above the conventional gauge measurement of 1,435 mm is often referred to as a broad gauge.
The first railway line constructed in India was a wide gauge track from Bore Bunder (now known as Chhatrapati Shivaji Terminus) to Thane in the year 1853.
The use of broad-gauge railway systems is also seen at port facilities for the purpose of accommodating cranes and other related equipment.
Thicker gauges provide enhanced stability and surpass thinner gauges in terms of performance.

Meter gauge:

The separation between the two tracks is 1,000 mm.
The installation of meter-gauge lines was undertaken with the objective of minimising expenses.
Under the Unigauge project, it is planned to convert all meter gauge lines in India, except the Nilgiri Mountain Railway (a historical railway operating on a meter gauge) into a wide gauge.

Narrow gauge:

The smaller gauge is sometimes referred to as a narrow gauge or little line.
The narrow-gauge railway refers to a kind of railway track characterised by a distance of 762 mm and 610 mm between the two tracks.
The Darjeeling Mountain Railway was officially designated as a UNESCO World Heritage site.
The Kalka Shimla Railway is well recognised and has significant popularity.

Standard gauge:

The railway gauge in question exhibits a distance of 1435 mm between its two tracks.
In the context of rail transportation systems in India, it is observed that the standard gauge is only used for urban rail transit systems such as Metro, Monorail, and Tram, the only standard gauge railway line in India was the Kolkata (Calcutta) tram system.
In metropolitan regions, it is preferable to construct metro lines only using the standard gauge due to the greater accessibility of rolling equipment for this gauge, as opposed to the Indian gauge.

Global Gender Gap Index

Context: The 17th edition of the Global Gender Gap Report of the World Economic Forum (published on June 20, 2023), based on data from 146 countries, has concluded that at the current rate of progress, it will take 131 years to close the global gender gap; it is 149 years in populous South Asian countries including India

What is Global Gender Gap Index

It is an annual report highlights the current state and evolution of gender parity.
It was first introduced by the World Economic Forum in 2006.
It is the longest-standing index tracking the progress of numerous countries’ efforts towards closing these gaps.

Key findings of the Global Gender Index 2023 Report:

According to the WEF no country has yet achieved full gender parity.
For the 14th year running, Iceland (91.2%) takes the top position. It also continues to be the only country to have closed more than 90% of its gender gap.
For the 146 countries, the Health and Survival gender gap has closed by 96%, the Educational Attainment gap by 95.2%, Economic Participation and Opportunity gap by 60.1%, and Political Empowerment gap by 22.1%.
The current rate of progress from 2006 to 2023 suggests that it will take considerable time to close the gender gaps.
The Political Empowerment gender gap is projected to take 162 years to close, while the Economic Participation and Opportunity gender gap is estimated to require 169 years.
On the other hand, the Educational Attainment gender gap is expected to be resolved within 16 years. However, the time needed to close the Health and Survival gender gap remains uncertain.
Achieving gender parity in the labour market continues to pose a significant challenge. Notably, women's participation in the global labour market has declined in recent years, and there are substantial disparities between men and women in various aspects of economic opportunity.
Despite women globally returning to the labour force at higher rates than men, resulting in a slight improvement in gender parity in labour force participation since the 2022, significant gaps persist in multiple dimensions (like leadership roles).

Status of South Asia & India in the Global Gender Index:

India was ranked 127 among 146 countries in gender parity, up eight places from last year’s place, in the Gender Gap Report, 2023 of the World Economic Forum (WEF).
India was ranked 135 in 2022 and has since improved by 1.4 percentage points, indicating a partial recovery towards its 2020 parity level.
The report highlights that India has closed 64.3% of the overall gender gap. However, India has only reached 36.7% parity in economic participation and opportunity.
India has achieved parity in enrolment across all levels of education.
In India, while there has been an improvement in parity in wages and income, the representation of women in senior positions and technical roles has slightly decreased since the last edition.
India has a 25.3% parity in political empowerment, with women comprising 15.1% of MPs.
Among 117 countries with available data since 2017, 18 countries, including Bolivia (50.4%), India (44.4%), and France (42.3%), have achieved women’s representation of over 40% in local governance.
In India, a 1.9 percentage point improvement in the sex ratio at birth has contributed to increased parity after more than a decade.
Compared to top-scoring countries with 94.4% gender parity at birth, India’s indicator stands at 92.7%.

Bima Vahaks launched by IRDAI

Context: The Insurance Regulatory and Development Authority of India (IRDAI) issued guidelines on Bima Vahaks.

Need for Insurance in India

Missing Middle: 30% of the eligible population constitute the ‘missing middle’ are deprived of the facilities of financial aid and insurance.
Protection Gaps: There are huge protection gaps that need to be bridged as about 50% of vehicles are uninsured in addition to minuscule coverage of property insurance. Additionally, the MSMEs are also inadequately covered by insurance products.

Bima Trinity will include three components

Bima Sugam:
- Platform to integrate insurers and distributors on to one platform.
- It will enable easy access under a single roof for insurance companies, agents, brokers, banks and aggregators. It will further enable individuals to buy life, health, motor or property insurance policies online.
- The platform is a centralised database that acts as a one-stop shop for customers, who at a later stage can pursue service requests and settlement of claims through the same portal.
Bima Vistar: It aims to provide ‘affordable, accessible and comprehensive cover’ in the form of a bundled risk cover for life, health, property and casualties or accidents.
Bima Vahaks:
- It is a women-centric, dedicated distribution channel to enhance insurance inclusion with a focus on rural areas.
- Each Gram Panchayat would have a ‘Bima Vahak’ who would be tasked to sell and service insurance products.
- It aims at identifying and developing resources locally who understand and appreciate local needs and enjoy the trust and confidence of the local population of their village/gram panchayat.

Yom Kippur War: Overview

Context: In a recent development on October 7, 2023, Hamas launched an attack on Israel. This action by Hamas has shifted the spotlight back to the 'Yom Kippur War,' which took place from October 6 to October 25, 1973.

Palestine was a territory under the Ottoman Rule.
Following the Sykes-Picot Accord, Palestine was given to England as a protectorate.
Antisemitic attitude of Hitler and ostracization of Jews in Europe, led to a decision where England and USA tried to resettle Jews in their original homeland.
Palestine at that time was Arab state inhabited by Muslims.
The incoming migrant Jews with the aid of USA and Britain, dominated the local Arab population and tried to carve out a state and marginalise Arabs in two pockets of West Bank and Gaza.
Thus, Arabs were made as a Stateless-refugees in their own country.
This created a lot of anger and resistance in other neighbouring Arab countries which wanted to restore the status of fellow Arabs in Palestine.

About Six-Day War of 1967:

The Six-Day War, also known as the Arab-Israeli War of 1967, was a conflict that took place between Israel and the Arab nations of Egypt, Syria, and Jordan.
It was triggered by Palestinian guerrilla attacks on Israel from bases in Syria, which escalated tensions between the two parties.
Syria, fearing an impending Israeli invasion, sought support from Egypt.
In response, Egypt ordered the withdrawal of UN peacekeeping forces from the Sinai Peninsula and deployed its troops there.
Additionally, Egypt and Jordan entered into a mutual defence treaty, heightening the atmosphere of confrontation.
Feeling encircled and under the perceived threat of an imminent Arab attack, Israel initiated a pre-emptive strike against the three Arab states on June 5, 1967.
This military action resulted in Israel gaining control of the Sinai Peninsula, Gaza Strip, West Bank of the Jordan River, Old City of Jerusalem, and the Golan Heights.
The status of these occupied territories later became a major point of contention between the conflicting parties.

What was Yom Kippur War?

The Yom Kippur war, also known as the October war or the Ramadan war, marked a pivotal moment in the history of the Arab-Israeli conflict. This conflict, fought from October 6 to 25, 1973, involved Israel on one side and Egypt and Syria on the other.

Causes and Course of war:

1.Israel's Post-1967 Ascendancy:

Following its decisive victory in the Six-Day War of 1967, Israel had emerged as a dominant regional power.
It annexed territories, including the Golan Heights from Syria and the Sinai Peninsula from Egypt, setting the stage for future tensions.

2.Anwar Sadat's Diplomatic Calculus:

Anwar el-Sadat became Egypt's president in 1970.
The country was facing economical-challenges, no longer to sustain continuous conflict with Israel.
Sadat hatched a bold plan to attack Israel, hoping that even an unsuccessful assault would compel Israel to consider peace with Egypt.

In 1972, he took significant diplomatic steps, expelling Soviet advisers from Egypt and establishing diplomatic channels with Washington (Israel's key ally).
A new alliance with Syria was forged, setting the stage for a coordinated attack on Israel.

4.The Outbreak of War on Yom Kippur:

The Yom Kippur war commenced on October 6, 1973 which is a significant date for Judaism.
Arab coalition forces launched surprise attacks on Israeli-occupied territories.
The attack, during the holy Islamic month of Ramadan, further exacerbated Israel's unpreparedness as many of its soldiers were on leave for Yom Kippur.
Consequently, Egypt and Syria initially made substantial gains.

5.The Course of Battle and International Involvement:

Israel eventually rallied its forces and counterattacked.
Fighting intensified primarily in the Golan Heights and the Sinai Peninsula.
U.S. President Richard Nixon issued a global nuclear alert due to heightened geopolitical tensions.

Comparing the Yom Kippur War to the recent Operation Al-Aqsa Flood

Recently, Hamas initiated 'Operation Al-Aqsa Flood.' The surge of violence has been attributed to the longstanding tensions between Israel and the Palestinians, notably stemming from the dispute over the sacred Al-Aqsa Mosque compound.
The episode has drawn comparisons to the Yom Kippur War of 1973, marking one of the deadliest assaults on Israel since that time.
Despite its advanced intelligence and interception systems, Israel was caught off guard by the sudden onslaught by Hamas, echoing the Yom Kippur War, during which Israel also found itself ill-prepared due to many soldiers being on leave for Yom Kippur, the holiest day in Judaism.

Protocol for Identification and Management of Malnutrition in Children

Context: Recently, Union Minister of Women and Child Development (WCD), launched the first ever “Protocol for Identification and Management of Malnutrition in Children’’ by the government, which has been put into place by the WCD Ministry in collaboration with the Ministry of Health and Family Welfare and the Ministry of Ayush.

Why it is important:

Mission Poshan 2.0 emphasizes the identification and treatment of malnourished children.
Previously, Severe Acute Malnutrition (SAM) treatment was confined to healthcare facilities. Now, a national 'Protocol for Management of Malnourished Children' has been introduced, enabling identification and management of malnourished children at the Anganwadi level, covering referral decisions, nutritional care, and follow-up.

More About Protocol for Identification and Management of Malnutrition in Children

It provides detailed 10-step guidelines for identification and management of malnourished children at the Anganwadi level.
The guidelines include growth monitoring, appetite testing, nutritional management of malnourished children and follow up care of children who manage to achieve requisite growth parameters after intervention.
It also includes unique initiatives like the “Buddy mother” concept which was first used in the state of Assam. Under this scheme, the mother of a healthy baby guides the mother of a malnourished child at an Angandwadi centre every week.
According to the protocol, SAM (Severe Acute Malnourished) children with medical complications, presence of bilateral pitting oedema and/or failed appetite test will be enrolled in the NRCs.

Bilateral pitting edema refers to swelling in both legs, or occasionally in both arms, that is characterised by an indentation, or “pit”, that remains when pressure is applied to the swollen area.

Every SAM child who passes the appetite test and all severely underweight (SUW) children shall be screened by the medical officer of primary health centres within three-five days of the test to identify any health issues, hidden infection or danger signs.
Children with any medical complication should be referred to the nearest health facility for medical management and further treatment of sickness.

Type 096: China’s Advanced Nuclear Armed Submarines

Context: According to a US report, China is equipping its nuclear-powered ballistic missile submarines with advanced JL-3 submarine-launched ballistic missiles (SLBMs) along with Type 096, the country’s next-generation ballistic missile submarine, that are capable of targeting the continental United States.

About Type 096:

Type 096 is a class of nuclear powered ballistic missile submarines.
It will be armed with the JL-3 Nuclear capable Submarine Launched Ballistic Missile (SLBM). JL-3 is reported as a solid-fueled missile with ranges of over 9,000 km or 10,000 km .
Type 096 is the third-generation Sub-surface ballistic nuclear (SSBN) submarine.
- SSBNs perform a specialised mission of strategic nuclear deterrence.
- To perform this, SSBNs are armed with submarine-launched ballistic missiles (SLBMs), which are large, long-range missiles armed with multiple nuclear warheads.
It has a large pressure hull diameter to incorporate more sound isolation.
It will complement the existing Type 094 Jin class SSBN. Type 096 are rumoured to be able to carry 24 SLBMs, compared to the 12 of the existing Type 094 Jin class SSBN.

Kudumbashree Mission

Context: More than 2,000 schools in Kerala will extend their weekend hours to accommodate the 46 lakh women enrolled in the state's prominent poverty alleviation initiative, ‘Kudumbashree’.

More about the news:

Kerala Local Self Government Department on October 1^st announced the launch of the "back to school" program.
The "back to school" initiative aims to equip women with the knowledge, skills, and enthusiasm needed for the mission's future endeavours, particularly in areas such as financial transactions and entrepreneurship.
The program will be facilitated by 15,000 trained resource persons and will cover five key topics: "organizational strength – lessons from experience, vibrancy of NHG, community-life security, livelihood ideas, and the digital age."

About Kudumbashree Mission:

Kudumbashree, established in 1997, is a poverty eradication and women empowerment initiative executed by the State Poverty Eradication Mission (SPEM) of the Government of Kerala.
Kudumbashree consists of two key entities: the Kudumbashree Community Network and the Kudumbashree Mission.
Its creation was in response to the decentralization of authority to Panchayat Raj Institutions (PRIs) in Kerala and the People's Plan Campaign, which aimed to formulate the Ninth Plan of local governments from the grassroots through PRIs.
In 2011, the Ministry of Rural Development (MoRD), Government of India, designated Kudumbashree as the State Rural Livelihoods Mission (SRLM) within the National Rural Livelihoods Mission (NRLM).
Kudumbashree operates as a network of community-based organizations (CBOs) for women, officially registered as Community Development Societies (CDS).
A common bylaw defines the framework for this network and features of the CDS Byelaw include:
- Membership as a matter of right
- Special provisions for the representation of vulnerable communities such as SC, ST, and disabled individuals
- Independence from and complementarity to local government roles clarified
- Formation of CDS Action Plans (Micro-Level Demand Plans)
- Incorporation of an accountability framework
- Assurance of an independent election process

Asian Games: A brief history

Context: India topped the medals table in four sports in the 19th Asian Games in Hangzhou

About Asian Games

Also known as Asiad, is a continental multi-sport event held every fourth year among athletes from all over Asia.
Motto is Ever Onward
Since 1982, it has been regulated by the Olympic Council of Asia (OCA), earlier it was by Asian Games Federation (AGF).
Recognised by the International Olympic Committee and is the second largest multi-sport event after the Olympics.
1^st edition: 1951 Asian Games in New Delhi
19^th edition: 2022 Asian Games in Hangzhou, China
20^th edition: 2026 Asian Games in Nagoya, Japan
India is a founder member of Asian Games.
India is one of the seven countries to have participated in all the editions of the Asian Games.
Israel has not taken part in the Asian Games since 1974.
China topped the list with 383,followed by Japan.
Breakdance popularly known as ‘breaking’, the sport makes its Asian Games debut this year.

India at Asian Games

India’s campaign at the 19th Asian Games ended with 28 gold, 38 silver and 41 bronze to a total of 107 medals. This is the best-ever performance of the Indian contingent at the continental event.
India also managed to top the medal table in four different events at this edition of the Asiad- archery, cricket, kabaddi and hockey.
India made its cricket debut at this edition of the Asian Games.

Monetary Policy Committee (MPC) Meeting of October 2023

Context: The RBI’s Monetary Policy Committee (MPC) has kept the policy rates unchanged at 6.5% in its recent meeting.

Decision of MPC

No change in Policy Rate (Repo Rate)

It is the rate at which RBI lends money to banks to meet their short-term funding needs.

Policy Stance: Withdrawal of Accommodation

An accommodative stance means the central bank is prepared to expand the money supply to boost economic growth.
Withdrawal of accommodation will mean reducing the money supply in the system which will rein in inflation further.

Reasons for Status Quo

Incomplete Monetary Policy Transmission: RBI slashed the Repo rate by 250 basis points since May 2022. However, these policy signals are not adequately reflected by corresponding reduction in interest rates by the banks.
Uncertainty Around Inflation: Headline inflation is still above the statutorily mandated rates due to uneven monsoon and its impact on kharif crops, rising consumption demand amid high food inflation and rising crude oil prices.
Surplus Liquidity in the Banking System: Improvement in systemic liquidity due to deposit of Rs. 2000 currency notes.

Other Developmental and Regulatory Decisions

Extension of Payments Infrastructure Development Fund (PIDF) Scheme:
- PIDF was operationalised with an objective to incentivise the deployment of payment acceptance infrastructure in less developed areas.
- With extending this scheme by two years and expanding the ambit by including beneficiaries of PM Vishwakarma Scheme, the decision will provide fillip to the RBI’s efforts towards promoting digital transactions at the grassroots level.
Introduction of New Channels for Card-on-File Tokenization:
- Tokenization has improved transaction security and transaction approval rate and it can only be created through a merchant's application or webpage.
- By enabling CoF token creation facilities directly at the issuer bank level, this measure will enhance convenience for cardholders to get tokens created and linked to their existing accounts with various e-commerce applications.