Today's Headlines - 19 July 2023
The Black Sea grain deal expired
GS Paper - 2 (International Relations)
The last ship carrying grain from Ukraine, under a UN-brokered deal that guarantees its safe passage, left the port of Odesa. This deal expired, and Russia has still not agreed to extend it.
What is the Black Sea grain deal?
Ukraine is among the world’s biggest exporter of foodgrains, such as wheat and corn, and a major contributor to the UN’s food aid programmes.
When Russia invaded the country and blockaded its ports, it sent food prices soaring and raised fears of food security in the poorer nations of the world. Pakistan, for instance, saw wheat prices skyrocket to crisis levels.
On 22 July 2022, the UN and Turkey got Russia to agree to the Black Sea Grain Initiative, under which cargo ships would be allowed to travel from and to three Ukrainian ports of Odesa, Chornomorsk and Pivdennyi (Yuzhny), after inspection that they weren’t carrying arms.
The safe passage in the Black Sea was 310 nautical miles long and three nautical miles wide. The deal has been extended twice, and expires.
According to a report from June, nearly 32 million tonnes of mostly corn and wheat have been exported by Ukraine under the deal.
Why has Russia not agreed to renew it?
Russia claims that the promises made to it under the deal have not been met, and it is still facing trouble exporting its own agricultural products and fertilisers because of the many sanctions the West has slapped on it.
While there is no direct restriction on Russia’s agricultural products, the country says barriers on payment platforms, insurance, shipping and other logistics are hampering its exports.
Russia has also said that it had agreed to the grain deal in order to help ensure global food security, but Ukraine has since exported mainly to high-and middle-income countries. The UN says while this is true, poorer countries have been helped by food prices cooling down.
The European Union (EU) is now considering connecting a subsidiary of the Russian Agricultural Bank (Rosselkhozbank) to the Society for Worldwide Interbank Financial Telecommunications (SWIFT), from which it was cut off due to the war, to allow grain and fertiliser transactions.
#upsc #news #international #relations #ukraine #blacksea #grain #russia #foodgrain #milliontonnes #eu #swift #products #deal #agriculturalbank #financial #telecommunications #war #fertiliser #transactions
The Black Sea grain deal expired
GS Paper - 2 (International Relations)
The last ship carrying grain from Ukraine, under a UN-brokered deal that guarantees its safe passage, left the port of Odesa. This deal expired, and Russia has still not agreed to extend it.
What is the Black Sea grain deal?
Ukraine is among the world’s biggest exporter of foodgrains, such as wheat and corn, and a major contributor to the UN’s food aid programmes.
When Russia invaded the country and blockaded its ports, it sent food prices soaring and raised fears of food security in the poorer nations of the world. Pakistan, for instance, saw wheat prices skyrocket to crisis levels.
On 22 July 2022, the UN and Turkey got Russia to agree to the Black Sea Grain Initiative, under which cargo ships would be allowed to travel from and to three Ukrainian ports of Odesa, Chornomorsk and Pivdennyi (Yuzhny), after inspection that they weren’t carrying arms.
The safe passage in the Black Sea was 310 nautical miles long and three nautical miles wide. The deal has been extended twice, and expires.
According to a report from June, nearly 32 million tonnes of mostly corn and wheat have been exported by Ukraine under the deal.
Why has Russia not agreed to renew it?
Russia claims that the promises made to it under the deal have not been met, and it is still facing trouble exporting its own agricultural products and fertilisers because of the many sanctions the West has slapped on it.
While there is no direct restriction on Russia’s agricultural products, the country says barriers on payment platforms, insurance, shipping and other logistics are hampering its exports.
Russia has also said that it had agreed to the grain deal in order to help ensure global food security, but Ukraine has since exported mainly to high-and middle-income countries. The UN says while this is true, poorer countries have been helped by food prices cooling down.
The European Union (EU) is now considering connecting a subsidiary of the Russian Agricultural Bank (Rosselkhozbank) to the Society for Worldwide Interbank Financial Telecommunications (SWIFT), from which it was cut off due to the war, to allow grain and fertiliser transactions.
#upsc #news #international #relations #ukraine #blacksea #grain #russia #foodgrain #milliontonnes #eu #swift #products #deal #agriculturalbank #financial #telecommunications #war #fertiliser #transactions
Today's Headlines - 03 August 2023
UIDAI is using AI to tackle payment frauds
GS Paper - 3 (ITC)
As more frauds related to the Aadhaar-enabled Payment System (AePS) come to the fore, the Unique Identification Authority of India (UIDAI), has turned to artificial intelligence-based systems in a bid to limit the cases — this includes developing technologies around fingerprinting and facial recognition. The UIDAI has rolled out an in-house Artificial Intelligence/Machine Learning technology-based Finger Minutiae Record – Finger Image Record (FMR-FIR) modality which is able to check the liveness of a fingerprint to detect the use of cloned fingerprint during the authentication process.
How does the Aadhaar fingerprint technology work?
The technology was rolled out in February this year and uses a combination of both finger minutiae and finger image to check the liveness of the fingerprint captured.
The measure was implemented after instances of people creating fake fingerprints using silicone to syphon off money from unsuspecting individuals’ bank accounts were reported.
The problem gets compounded on account of the fact that a large part of the AePS user base is in rural areas.
In effect, the AI-based technology is able to identify whether the fingerprint is from a real, or ‘live’ finger, or a cloned one.
Payment frauds on the rise
According to the Home Ministry, in the financial year 2020-21, 2.62 lakhs financial crimes, such as money laundering, bribery, corruption and different kinds of frauds, were reported. The number jumped to 6.94 lakhs in 2022, a report, released by the Standing Committee on Finance — headed by BJP MP Jayant Sinha — said.
Citing data it received from the supervised entities of the Reserve Bank of India (RBI), the committee noted that payment-related frauds are on the rise in India – In FY21, the volume of such frauds was a little over 700,000, which by FY23, increased to close to 20 million.
According to the information submitted to it by the Indian Cyber Crime Coordination Centre (I4C), in the year 2022, out of 6,94,424 complaints related to financial frauds only in 2.6 per cent of cases an FIR was registered.
The details shared with Parliament revealed that between November 2021 and March 2023, more than 2,000 complaints related to AePS were received by the offices of the RBI’s ombudsman.
#upsc #news #headline #UIDAI #payment #frauds #ITC #adhaar #system #FMR #FIR #machine #work #syphon #rural #areas #RBI #reserve #bank #india #ombudsman #cases #financial #bribery #corruption #silicone #cloned #I4C #indian #cyber #crime #coordination #tackle
UIDAI is using AI to tackle payment frauds
GS Paper - 3 (ITC)
As more frauds related to the Aadhaar-enabled Payment System (AePS) come to the fore, the Unique Identification Authority of India (UIDAI), has turned to artificial intelligence-based systems in a bid to limit the cases — this includes developing technologies around fingerprinting and facial recognition. The UIDAI has rolled out an in-house Artificial Intelligence/Machine Learning technology-based Finger Minutiae Record – Finger Image Record (FMR-FIR) modality which is able to check the liveness of a fingerprint to detect the use of cloned fingerprint during the authentication process.
How does the Aadhaar fingerprint technology work?
The technology was rolled out in February this year and uses a combination of both finger minutiae and finger image to check the liveness of the fingerprint captured.
The measure was implemented after instances of people creating fake fingerprints using silicone to syphon off money from unsuspecting individuals’ bank accounts were reported.
The problem gets compounded on account of the fact that a large part of the AePS user base is in rural areas.
In effect, the AI-based technology is able to identify whether the fingerprint is from a real, or ‘live’ finger, or a cloned one.
Payment frauds on the rise
According to the Home Ministry, in the financial year 2020-21, 2.62 lakhs financial crimes, such as money laundering, bribery, corruption and different kinds of frauds, were reported. The number jumped to 6.94 lakhs in 2022, a report, released by the Standing Committee on Finance — headed by BJP MP Jayant Sinha — said.
Citing data it received from the supervised entities of the Reserve Bank of India (RBI), the committee noted that payment-related frauds are on the rise in India – In FY21, the volume of such frauds was a little over 700,000, which by FY23, increased to close to 20 million.
According to the information submitted to it by the Indian Cyber Crime Coordination Centre (I4C), in the year 2022, out of 6,94,424 complaints related to financial frauds only in 2.6 per cent of cases an FIR was registered.
The details shared with Parliament revealed that between November 2021 and March 2023, more than 2,000 complaints related to AePS were received by the offices of the RBI’s ombudsman.
#upsc #news #headline #UIDAI #payment #frauds #ITC #adhaar #system #FMR #FIR #machine #work #syphon #rural #areas #RBI #reserve #bank #india #ombudsman #cases #financial #bribery #corruption #silicone #cloned #I4C #indian #cyber #crime #coordination #tackle
Today's Headlines - 04 August 2023
The crypto project WorldCoin
GS Paper - 3 (Economy)
A new cryptocurrency project called WorldCoin, from OpenAI CEO Sam Altman, has claimed over 2 million sign-ups across the world after its official launch on 24 July 2023. OpenAi was the company behind the AI chatbot ChatGPT.
What differentiates WorldCoin from many existing cryptocurrencies?
It is its use of biometrics. Its unique method of sign-up, involving scanning of irises, has rung alarm bells in countries such as France, Germany and Kenya.
India also has at least 17 sign-up locations – mostly at Delhi Metro stations in the NCR region and a few in Bengaluru. In comparison, the United States has 10 locations and Japan has three locations, according to the WorldCoin website.
What is WorldCoin?
The Worldcoin protocol is intended to be the world’s largest identity and financial public network, open to everyone regardless of their country, background or economic status.
WorldCoin wants to offer users an account that only “real humans” can get, through what it calls a “World ID”.
For this, a customer has to sign up and do in-person eyes scan at particular locations, where their irises would be scanned through a ball-like object called an ‘orb’.
Once the orb’s iris scan verifies the person is a real human, it creates a World ID for them.
The reasoning given here is that biometric data would help differentiate between humans and Artificial Intelligence systems and prevent duplication of IDs from the same person.
It can then be used as an ID in a variety of everyday applications – such as a cryptocurrency wallet – without revealing the user’s identity.
The project has three aspects: a World ID or a digital identity for “proving an individual’s unique personhood,” a Worldcoin token (WLD) that is its cryptocurrency, and a World App that enables “payment, purchases and transfers globally using digital assets and traditional currencies.”
It says that creating a World ID (through the orb scanning) is not essential for accessing the app or tokens. But it provides certain incentives for doing so.
Who owns WorldCoin?
San Francisco and Berlin-based company Tools for Humanity is behind WorldCoin. Altman is its Co-Founder and Alex Blania is its Co-Founder and CEO.
The company’s website simply states that it is a technology company that was built to ensure a “more just economic system”, and re-directs visitors to the WorldCoin website.
The Worldcoin can help address how the economy will be reshaped by generative AI technology.
#upsc #news #headline #crypto #project #worldcoin #economy #world #chatGPT #OpenAi #currencies #germany #kenya #delhimetro #US #japan #location #financial #worldID #human #intelligence #technology #visitors #humanity #berlin #francisco #CEO
The crypto project WorldCoin
GS Paper - 3 (Economy)
A new cryptocurrency project called WorldCoin, from OpenAI CEO Sam Altman, has claimed over 2 million sign-ups across the world after its official launch on 24 July 2023. OpenAi was the company behind the AI chatbot ChatGPT.
What differentiates WorldCoin from many existing cryptocurrencies?
It is its use of biometrics. Its unique method of sign-up, involving scanning of irises, has rung alarm bells in countries such as France, Germany and Kenya.
India also has at least 17 sign-up locations – mostly at Delhi Metro stations in the NCR region and a few in Bengaluru. In comparison, the United States has 10 locations and Japan has three locations, according to the WorldCoin website.
What is WorldCoin?
The Worldcoin protocol is intended to be the world’s largest identity and financial public network, open to everyone regardless of their country, background or economic status.
WorldCoin wants to offer users an account that only “real humans” can get, through what it calls a “World ID”.
For this, a customer has to sign up and do in-person eyes scan at particular locations, where their irises would be scanned through a ball-like object called an ‘orb’.
Once the orb’s iris scan verifies the person is a real human, it creates a World ID for them.
The reasoning given here is that biometric data would help differentiate between humans and Artificial Intelligence systems and prevent duplication of IDs from the same person.
It can then be used as an ID in a variety of everyday applications – such as a cryptocurrency wallet – without revealing the user’s identity.
The project has three aspects: a World ID or a digital identity for “proving an individual’s unique personhood,” a Worldcoin token (WLD) that is its cryptocurrency, and a World App that enables “payment, purchases and transfers globally using digital assets and traditional currencies.”
It says that creating a World ID (through the orb scanning) is not essential for accessing the app or tokens. But it provides certain incentives for doing so.
Who owns WorldCoin?
San Francisco and Berlin-based company Tools for Humanity is behind WorldCoin. Altman is its Co-Founder and Alex Blania is its Co-Founder and CEO.
The company’s website simply states that it is a technology company that was built to ensure a “more just economic system”, and re-directs visitors to the WorldCoin website.
The Worldcoin can help address how the economy will be reshaped by generative AI technology.
#upsc #news #headline #crypto #project #worldcoin #economy #world #chatGPT #OpenAi #currencies #germany #kenya #delhimetro #US #japan #location #financial #worldID #human #intelligence #technology #visitors #humanity #berlin #francisco #CEO
Today's Headlines - 11 August 2023
MPC has kept interest rate unchanged
GS Paper - 3 (Economy)
Interest rates in the Indian financial system will remain unchanged following the decision of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) to keep the main policy instrument – the Repo rate – unchanged at 6.50 per cent on 10 August 2023. Equated monthly instalments (EMIs) of home, vehicle and other loans are expected to remain steady for the time being.
Why is the RBI in pause mode?
The pause in the Repo rate – the rate at which RBI lends money to banks to meet their short-term funding needs – on 10 August 2023 is for the third time since the RBI started hiking the Repo rate in May 2022 to check inflation.
In April policy, the MPC members, in a surprise move, had unanimously decided to pause the rate hike cycle.
Monetary policy transmission is still underway after the RBI slashed the Repo rate by 250 basis points since May 2022 and headline inflation is expected to remain above the five per cent level and even touch even 6.2 per cent in the second quarter of this year.
While the vegetable price shock may reverse quickly, possible El Nino weather conditions along with global food prices need to be watched closely against the backdrop of a skewed southwest monsoon so far.
Why RBI has hiked inflation projection and its impact
On 10 August 2023, the RBI revised its FY2024 inflation projection to 5.4 per cent from 5.1 per cent announced in June.
It said CPI inflation is expected to be at 6.2 per cent in the second quarter, 5.7 per cent in the third quarter and 5.2 per cent in the fourth quarter of FY2023-24.
This means the high policy rates will remain high for long and, therefore, a rate cut can be expected only in Q1 FY25.
The spike in tomato prices and the rise in cereal and pulses contributed to inflation. However, vegetable prices may see a significant correction.
Retail inflation (measured using the consumer prices index or CPI) had declined to an 18-month low of 4.3 per cent in May from 5.7 per cent in March, remaining under the RBI’s comfort zone of 2-6 per cent for two consecutive months.
However, inflation has picked up since then and it’s likely to rise in the range of 6-6.8 per cent in July from 4.81 per cent in June. The RBI is mandated to keep CPI at 4 per cent with a band of +/- 2 per cent.
Why has RBI retained the stance of withdrawal of accommodation?
The RBI has focused on its stance of ‘withdrawal of accommodation’ until all risks to inflation dissipate. 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.
#upsc #news #headline #MPC #rate #economy #indian #financial #system #policy #EMI #RBI #bank #hiked #CPI #zone #withdrawal #level #monetary #committee #instalments #mode
MPC has kept interest rate unchanged
GS Paper - 3 (Economy)
Interest rates in the Indian financial system will remain unchanged following the decision of the Monetary Policy Committee (MPC) of the Reserve Bank of India (RBI) to keep the main policy instrument – the Repo rate – unchanged at 6.50 per cent on 10 August 2023. Equated monthly instalments (EMIs) of home, vehicle and other loans are expected to remain steady for the time being.
Why is the RBI in pause mode?
The pause in the Repo rate – the rate at which RBI lends money to banks to meet their short-term funding needs – on 10 August 2023 is for the third time since the RBI started hiking the Repo rate in May 2022 to check inflation.
In April policy, the MPC members, in a surprise move, had unanimously decided to pause the rate hike cycle.
Monetary policy transmission is still underway after the RBI slashed the Repo rate by 250 basis points since May 2022 and headline inflation is expected to remain above the five per cent level and even touch even 6.2 per cent in the second quarter of this year.
While the vegetable price shock may reverse quickly, possible El Nino weather conditions along with global food prices need to be watched closely against the backdrop of a skewed southwest monsoon so far.
Why RBI has hiked inflation projection and its impact
On 10 August 2023, the RBI revised its FY2024 inflation projection to 5.4 per cent from 5.1 per cent announced in June.
It said CPI inflation is expected to be at 6.2 per cent in the second quarter, 5.7 per cent in the third quarter and 5.2 per cent in the fourth quarter of FY2023-24.
This means the high policy rates will remain high for long and, therefore, a rate cut can be expected only in Q1 FY25.
The spike in tomato prices and the rise in cereal and pulses contributed to inflation. However, vegetable prices may see a significant correction.
Retail inflation (measured using the consumer prices index or CPI) had declined to an 18-month low of 4.3 per cent in May from 5.7 per cent in March, remaining under the RBI’s comfort zone of 2-6 per cent for two consecutive months.
However, inflation has picked up since then and it’s likely to rise in the range of 6-6.8 per cent in July from 4.81 per cent in June. The RBI is mandated to keep CPI at 4 per cent with a band of +/- 2 per cent.
Why has RBI retained the stance of withdrawal of accommodation?
The RBI has focused on its stance of ‘withdrawal of accommodation’ until all risks to inflation dissipate. 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.
#upsc #news #headline #MPC #rate #economy #indian #financial #system #policy #EMI #RBI #bank #hiked #CPI #zone #withdrawal #level #monetary #committee #instalments #mode