February 29, 2024 | Your One-Stop Solution for Daily Preparation
TPAPs | Explained
TPAPs offer UPI-compliant applications to users, enabling UPI-based payment transactions. They work with banks and payment service providers to facilitate transactions, ensuring adherence to security standards and compliance guidelines set by NPCI.
Highlights of the Day
1. India and US Strengthen Cooperation on Homeland Security: Focus on Counter-Terrorism, Law Enforcement Training, and People-to-People Ties
India and the US discussed enhancing bilateral cooperation on terrorism, drug trafficking, illegal immigration, and money laundering during the Homeland Security Dialogue in New Delhi. The dialogue resulted in a Memorandum of Cooperation on law enforcement training between the US Federal Law Enforcement Training Centre and India’s Sardar Vallabhbhai Patel National Police Academy. Both sides reviewed existing cooperation in counter-terrorism and security, emphasizing steps to combat terrorism, violent extremism, drug trafficking, organized crime, and ensure transportation security. The commitment to strengthening people-to-people ties and addressing issues like safe migration, illegal migration, human trafficking, money laundering, and cybercrimes was reaffirmed. The co-chairs expressed interest in ongoing collaboration and exchange of information between law enforcement agencies [1].
2. India and South Africa Object to WTO Investment Deal, Risking Hundreds of Billions in Investment
India and South Africa have formally objected to a significant investment deal at the World Trade Organisation (WTO) meeting in Abu Dhabi. The Investment Facilitation for Development (IFD) Agreement, backed by Chile, South Korea, and China, aims to streamline bureaucracy, enhance the investment environment, and promote foreign direct investment, potentially supporting global welfare from $200 to $800 billion. Although the deal received approval from 125 WTO member countries, objections from India and South Africa could block hundreds of dollars in investment. According to WTO rules, any of the 164 member countries can object to a deal, necessitating unanimous consensus. The ongoing four-day WTO meeting, ending on February 29, 2024, has not seen major developments aside from adding East Timor and Comoros as new members[2].
3. PM Modi Unveils Mega Development Projects in Tamil Nadu, Emphasizes Connectivity and Progress
Prime Minister Narendra Modi inaugurated and laid the foundation stone for multiple development projects worth over Rs 17,300 crores in Thoothukudi, Tamil Nadu. Projects include the Outer Harbor Container Terminal at V.O.Chidambaranar Port, India's first indigenous green hydrogen fuel cell inland waterway vessel, and tourist facilities in 75 lighthouses. The Prime Minister highlighted Tamil Nadu's progress and emphasized the government's commitment to the region's development. The projects aim to enhance connectivity, create employment, and contribute to India's economic growth. PM Modi celebrated the collaborative efforts of roadways, highways, and waterways departments for better connectivity and opportunities in Tamil Nadu [3].
4. India's Ultra-High Net Worth Individuals (UHNWIs) Surge, Expected to Reach 20,000 by 2028: Knight Frank Report
The number of Ultra-High Net Worth Individuals (UHNWIs) in India rose by 6.1% annually to 13,263 in 2023, according to Knight Frank's 'The Wealth Report 2024'. UHNWIs are individuals with a net worth of $30 million and above. The report anticipates the number to grow to 19,908 by 2028. Globally, the number of UHNWIs is expected to increase by 28.1% to 802,891 by 2028. In 2023, the global UHNWI count rose by 4.2%. India ranks third in annual performance, with Turkey and the US leading. Knight Frank also notes the increasing mobility of wealth globally [4].
5. Stalled Negotiations: India and Nepal Face Challenges in Pancheshwar Multipurpose Project Progress
Despite signing an agreement on long-term power sharing over a month ago, India and Nepal have seen no progress on the stalled negotiations concerning the Pancheshwar Multipurpose Project (PMP). During a recent meeting between Foreign Secretary Vinay Mohan Kwatra and Nepali counterpart Sewa Lamsal, discussions on multifaceted cooperation took place, but there was no mention of the PMP. The project, aimed at generating around 6,480 MW of energy, has been hindered by disagreements over the sharing of benefits, particularly related to irrigation and flood control. The resolution requires political courage and bureaucratic foresight from both sides[5].
Source: The Hindu | Indian Express | PIB |Pressreader
Practice Questions for Prelims
Q1: Consider the following statements regarding the Finance Commission:
I. The Finance Commission recommends grants-in-aid to states, but it does not have the power to modify tax rates.
II. The Finance Commission takes into account population density as one of the criteria for resource distribution among states.
III. The 15th Finance Commission (2020-2025) is chaired by N.K. Singh.
Select the correct answer using the codes below:
a) I and II are true.
b) II and III are true.
c) I and III are true.
d) All statements are true.
Q2: Consider the statements about income inequality:
I. Lorenz curve is a graphical representation used to measure income inequality.
II. The Kuznets Curve suggests that as a country undergoes economic development, income inequality tends to decrease.
III. In-kind transfers, such as healthcare and education, have no impact on reducing income inequality.
Select the correct answer using the codes below:
a) I and II are true.
b) II and III are true.
c) I and III are true.
d) All statements are true.
Q3: Consider the statements regarding the World Trade Organization:
I. The WTO's Agreement on Agriculture aims to eliminate subsidies and trade-distorting practices in the agricultural sector.
II. The Dispute Settlement Body (DSB) of the WTO has the authority to impose trade sanctions on non-compliant members.
III. The most-favored-nation (MFN) principle allows WTO members to offer preferential trade terms to specific countries without extending them to all members.
Select the correct answer using the codes below:
a) I and II are true.
b) II and III are true.
c) I and III are true.
d) All statements are true.
Q4: What is the significance of the "Nine-Dash Line" in the context of international relations?
a) It delineates the maritime boundaries of countries in the South China Sea, promoting regional cooperation.
b) It represents the agreed-upon borders between Southeast Asian nations to prevent territorial disputes.
c) It is a historical demarcation line used during the Cold War, separating the influence of the United States and the Soviet Union in Asia.
d) It is associated with territorial claims made by a certain country, leading to tensions and disputes in the South China Sea.
Q5: What are Treasury Bills (T-Bills) in the context of government securities?
a) Long-term bonds issued by the government to finance infrastructure projects.
b) Short-term debt instruments issued by the government to raise funds for a specified period, usually less than one year.
c) Certificates issued by the central bank for the exchange of old currency notes.
d) Tradable commodities used to stabilize the currency value in the foreign exchange market.
Today’s Question for Mains Answer Writing
Discuss the role and impact of digital payments on financial inclusion and the economy. Highlight the challenges and opportunities associated with the widespread adoption of digital payment systems in India.
Need help in writing or evaluation?
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