UPSC CURRENT AFFAIRS SIMPLIFIED

24 May 2024 06:52

CHINA -TAIWAN CONFLICT

Syllabus: INTERNATIONAL EVENTS

Context: Recently China encircled Taiwan with naval vessels and military aircraft in war games.

Learning Points:

* The China-Taiwan Conflict is a complex geopolitical issue with historical roots.

Background:

* Taiwan came under Chinese control during the Qing dynasty but was given to Japan after China lost the first Sino-Japanese war in 1895.

* China regained control of Taiwan in 1945 after Japan lost World War II, but the civil war between the nationalists and communists led to the nationalists fleeing to Taiwan in 1949.

* As of now, only 15 countries officially recognize Taiwan as a sovereign country due to China’s diplomatic pressure.
•  These include Vatican City, Belize, Honduras, Guatemala, Nicaragua, Paraguay, Saint Kitts and Nevis, Saint Vincent and the Grenadines, Nauru, Tuvalu, Marshall Islands, Palau, Solomon Islands, Swaziland, and Eswatini.

One China Policy:

* The One China Policy underscores recognition of China’s sovereignty over Taiwan.

*  It has been held by the US since 1979. Under this policy, the US snapped formal diplomatic ties with Taiwan (Republic of China) and established ties with the People’s Republic of China (PRC) in Beijing.

* Any country that wants to establish political and diplomatic relations with China must adhere to this principle and not recognize Taiwan as an independent country.

Strategic Significance of Taiwan:

* Taiwan is situated in a strategically important location in the western Pacific Ocean, adjacent to China, Japan, and the Philippines.

* Its economic interests, investments in China, and pro-independence sentiments make the situation volatile.

* Monitoring the China-Taiwan relationship closely is crucial for regional stability.

UPSC CURRENT AFFAIRS SIMPLIFIED

24 May 2024 06:51

CHAR DHAM TEMPLES

Syllabus: ART AND CULTURE

Context: With an unprecedented number of pilgrims visiting the Char Dham temples in Uttarakhand, the govt. banned offline registration till May 31.

Learning Points:

* The Char Dham in Uttarakhand, also known as the Chota Char Dham, is a sacred pilgrimage circuit consisting of four temples:

  Yamunotri: Dedicated to Goddess Yamuna, it is located in the Uttarkashi district near the source of the River Yamuna.

  Gangotri: Also in Uttarkashi, this temple honours Goddess Ganga, situated near the source of the River Ganga.

  Kedarnath: Located in the Rudraprayag district, this temple is dedicated to Lord Shiva.

  Badrinath: Situated in the Chamoli district, the Badrinarayan Temple is dedicated to Lord Vishnu.

*  These temples are part of the larger Char Dham pilgrimage sites but are specifically located in the state of Uttarakhand.

*  The Char Dham pilgrimage circuit holds immense spiritual significance in Hinduism.

* The pilgrimage usually begins from Yamunotri and proceeds in a clockwise direction to Gangotri, Kedarnath, and ends at Badrinath.

* The journey to these temples is considered highly spiritual and is undertaken by thousands of devotees each year to seek blessings and purification.

UPSC CURRENT AFFAIRS SIMPLIFIED

23 May 2024 08:21

Q2. With reference to the Model Code of Conduct (MCC), consider the following statements:

1.  The Model Code of Conduct is a set of guidelines published by the union government of India for political parties and candidates.

2.  The MCC is in effect from the announcement of the election schedule until the result declaration.

Which of the statements given above is/are correct?

UPSC CURRENT AFFAIRS SIMPLIFIED

23 May 2024 08:18

PRACTICE QUESTIONS

UPSC CURRENT AFFAIRS SIMPLIFIED

23 May 2024 08:09

MODEL CODE OF CONDUCT (MCC)

Syllabus: POLITY AND GOVERNANCE

Context: Governor Arif Mohammed Khan returns ordinances on delimitation of local bodies, citing model code of conduct.

Learning Points:

* The Model Code of Conduct (MCC) is a set of guidelines published by the Election Commission of India (ECI) for political parties and candidates.

* It establishes standards of conduct during election campaigns and polling.

Purpose and Scope:

* The MCC serves as a consensus document. Political parties voluntarily agree to adhere to its principles during elections.

*   It empowers the ECI to supervise and conduct free and fair elections, as mandated by Article 324 of the Constitution.

* The MCC is in effect from the announcement of the election schedule until the result declaration.

Restrictions and Prohibitions:

* Financial Grants: The government cannot announce any financial grants during the MCC period.

* Infrastructure Promises: Promising construction of roads or other facilities is prohibited.

* Ad Hoc Appointments: No ad hoc appointments in government or public undertakings are allowed.

Enforcement and Strength:

* While the MCC lacks statutory backing, its strict enforcement by the EC has made it influential over the past decade.

* Some provisions of the MCC can be enforced by invoking corresponding provisions in other statutes, such as the Indian Penal Code (IPC) 1860, Code of Criminal Procedure (CrPC) 1973, and Representation of People’s Act (RPA) 1951.

* Violations of the MCC can result in actions such as warnings, reprimands, or even disqualification of candidates.

UPSC CURRENT AFFAIRS SIMPLIFIED

22 May 2024 09:02

Q2. Consider the following pathogens and the diseases:

1.  Variola major -   Smallpox

2.  Rhinoviruses - Common cold

3.  Naegleria fowleri - Amoebic meningoencephalitis

4.   Plasmodium – Malaria

How many of the pairs given above are correctly matched?

UPSC CURRENT AFFAIRS SIMPLIFIED

22 May 2024 08:58

PRACTICE QUESTIONS

UPSC CURRENT AFFAIRS SIMPLIFIED

22 May 2024 08:53

AMOEBIC MENINGOENCEPHALITIS

Syllabus: SCIENCE AND TECHNOLOGY

Context: Recently a five-year-old girl from Malappuram in Kerala tragically died from amoebic meningoencephalitis after swimming in a local river.

Learning Points:

* Amoebic meningoencephalitis, also known as primary amoebic meningoencephalitis (PAM), is a rare and deadly brain infection caused by the amoeba Naegleria fowleri.

Cause and Transmission:

* Naegleria fowleri is a free-living amoeba found in warm freshwater and soil worldwide.

* People usually get infected when the amoeba enters their body through the nose, often during swimming or water-related activities.

* Drinking contaminated water does not lead to infection.

Symptoms:

* Initially, symptoms include headache, fever, nausea, and vomiting.

* As the infection progresses, patients may experience a stiff neck, confusion, seizures, hallucinations, and eventually slip into a coma.

UPSC CURRENT AFFAIRS SIMPLIFIED

21 May 2024 07:06

Q2. Consider the following countries:

1.  Azerbaijan
2.  Armenia
3.  Syria
4.  Israel
5.  Iraq
6.  Turkey

How many of the above-mentioned countries share border with Iran?

UPSC CURRENT AFFAIRS SIMPLIFIED

21 May 2024 07:01

PRACTICE QUESTIONS

UPSC CURRENT AFFAIRS SIMPLIFIED

21 May 2024 06:57

IRAN

Syllabus: GEOGRAPHY – WORLD MAP

Context: Iranian President Ebrahim Raisi tragically lost his life in a helicopter crash on May 20, 2024. The incident occurred in the northwestern part of Iran, where the helicopter made a “hard landing” due to heavy fog.

Learning Points:

* Iran is located in West Asia, with the Caspian Sea to its north and the Persian Gulf and Gulf of Oman to its south.

* It shares land borders with seven countries:
  Northwest: Azerbaijan and Armenia
  North: Turkmenistan
  East: Afghanistan and Pakistan
  West: Iraq
  Turkey lies to the northwest, sharing a border with Iran as well.

* This strategic location is significant for India’s foreign policy, particularly for connectivity to Afghanistan and Central Asian countries, offering an alternative route to Pakistan.

UPSC CURRENT AFFAIRS SIMPLIFIED

18 May 2024 09:25

PRACTICE QUESTIONS

UPSC CURRENT AFFAIRS SIMPLIFIED

18 May 2024 09:23

ASSET RECONSTRUCTION COMPANIES (ARCS)

Syllabus: ECONOMY

Context: The Reserve Bank of India (RBI) has identified “several” supervisory concerns related to the functioning of asset reconstruction companies (ARCs).

Learning Points:

* Asset Reconstruction Companies (ARCs) are specialized financial institutions that purchase the bad debts of a bank at a mutually agreed value and then attempt to recover those debts or associated securities themselves.

* ARCs are registered under the Reserve Bank of India (RBI) and regulated under the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (SARFAESI Act, 2002).

* They function under the supervision and control of the RBI.

* As per the RBI, ARC performs the functions namely Acquisition of financial assets, Change or takeover of Management or Sale or Lease of Business of the Borrower, Rescheduling of Debts, Enforcement of Security Interest and Settlement of dues payable by the borrower.

* ARCs take over a portion of the bank's debts, which qualify as Non-Performing Assets (NPAs). Therefore, ARCs are involved in the business of asset reconstruction, securitisation, or both.

* All the rights previously held by the lender (the bank) in regard to the debt are transferred to the ARC.

Funding

* The required funds to purchase such debts can be raised from Qualified Buyers.

*  Qualified Buyers include Financial Institutions, Insurance companies, Banks, State Financial Corporations, State Industrial Development Corporations, trustee or ARCs registered under SARFAESI and Asset Management Companies registered under SEBI that invest on behalf of mutual funds, pension funds, FIIs, etc.

* The Qualified Buyers are the only persons from whom the ARC can raise funds.

UPSC CURRENT AFFAIRS SIMPLIFIED

17 May 2024 12:59

PRACTICE QUESTIONS

UPSC CURRENT AFFAIRS SIMPLIFIED

17 May 2024 12:55

ARMENIA AND AZERBAIJAN

Syllabus: INTERNATIONAL EVENTS

Context: Armenia and Azerbaijan reached an agreement regarding disputed sections of their shared border. This marks a significant step toward normalizing relations between the two historic rivals. The deal involves the return of four border villages that were previously seized by Armenia during the 1990s. These villages—Baghanis Ayrum, Ashaghi Askipara, Kheyrimli, and Ghizilhajili—will now be under Azerbaijani control.

Learning Points:
 
* Armenia and Azerbaijan are located in the South Caucasus region, which is at the crossroads of Eastern Europe and Western Asia.

* Both countries have been involved in territorial disputes, particularly over the Nagorno-Karabakh region.
Key geographical details of both countries:

Armenia:

* Landlocked country with no access to the world’s oceans.

* Bordered by Georgia to the north, Azerbaijan to the east, Iran to the southeast, and Turkey to the west.

* The capital and largest city is Yerevan.

Azerbaijan:

* Located to the east of Armenia, with a significant coastline along the Caspian Sea.

* Bordered by Russia to the north, Georgia to the northwest, Armenia to the west, Iran to the south, and the Caspian Sea to the east.

* The capital and largest city is Baku.

UPSC CURRENT AFFAIRS SIMPLIFIED

24 May 2024 06:51

WEST BANK

Syllabus: GEOGRAPHY- WORLD MAP

Context: Israeli forces carried out raids in the West Bank city of Jenin for two consecutive days. At least 12 Palestinians were killed during the operation.

Learning Points:

* The West Bank is a landlocked territory in the Levant region of West Asia.

* It is the larger of the two Palestinian territories, the other being the Gaza Strip.

Geography:

* Bordered by Jordan and the Dead Sea to the east.

*  Bordered by Israel (via the Green Line) to the south, west, and north.

* The Mediterranean Sea lies to the west.

* The territory has been under Israeli occupation since 1967.

History:

* Emerged after the 1948 Arab–Israeli War as a region occupied and subsequently annexed by Jordan.

* Occupied by Israel during the 1967 Six-Day War.

* Administered by Israel as the Judea and Samaria Area.

* Mid-1990s Oslo Accords divided the West Bank into three regional levels of Palestinian sovereignty: Area A (PNA), Area B (PNA and Israel), and Area C (Israel).

Significance:

*  Palestinians consider it the heart of their envisioned state, along with the Gaza Strip.

*  Israelis view it as their ancestral homeland, with numerous biblical sites.

* Area C contains Israeli settlements, which the international community considers illegal under international law.

UPSC CURRENT AFFAIRS SIMPLIFIED

23 May 2024 08:23

Q3. With reference to the Consumer Price Index (CPI), consider the following statements:

1.  The Consumer Price Index measures the average change in prices of a basket of goods and services consumed by households.

2.  The Reserve Bank of India adopted the CPI as its primary measure of inflation.

3.  The base year for CPI calculations is 2012.

How many of the statements given above are correct?

UPSC CURRENT AFFAIRS SIMPLIFIED

23 May 2024 08:19

Q1. With reference to the Ordinance making power of the President, consider the following statements:

1.  Article 213 of the constitution empowers the President to promulgate ordinances.

2.  The President can issue an ordinance only when either both or one of the Houses of Parliament is not in session.

3.  An ordinance promulgated by the President has a maximum validity of six months and six weeks from the date of its promulgation.

How many of the statements given above are correct?

UPSC CURRENT AFFAIRS SIMPLIFIED

23 May 2024 08:17

CONSUMER PRICE INDEX (CPI)

Syllabus: ECONOMY

Context: The Centre of Indian Trade Unions (CITU) has raised concerns about the delay in releasing the All-India Consumer Price Index for Industrial Workers (AICPI-IW).

Learning Points:

* The Consumer Price Index (CPI) is a crucial economic indicator that measures the average change in prices of a basket of goods and services consumed by households.

* It provides insights into inflation trends and helps policymakers make informed decisions.

Purpose and Calculation:

* The CPI reflects price changes from the perspective of retail buyers. It tracks the cost of essential items that consumers purchase for daily use.

* The calculation involves comparing the current prices of a fixed basket of goods and services with their prices in a base year. The percentage change indicates inflation or deflation.

Sub-Groups:

* The CPI includes various sub-groups representing different categories of goods and services.

* These sub-groups help analyze specific sectors of the economy. Some common sub-groups are:

 Food and Beverages: Includes food items, beverages, and dining out expenses.

 Fuel and Light: Covers energy costs such as fuel, electricity, and gas.

 Housing: Includes rent, utilities, and home-related expenses.

 Clothing, Bedding, and Footwear: Tracks prices of clothing and footwear.

Types of CPI:

* CPI for Industrial Workers (IW): Focuses on urban industrial workers and their consumption patterns.

* CPI for Agricultural Labourer (AL): Specifically considers rural agricultural labourers.

* CPI for Rural Labourer (RL): Reflects the cost of living for rural labourers.

* CPI (Rural/Urban/Combined): The overall CPI, combining both rural and urban data.

Data Sources and Compilation:

* The first three CPI types are compiled by the Labour Bureau under the Ministry of Labour and Employment.

* The fourth type (CPI Rural/Urban/Combined) is compiled by the National Statistical Office (NSO) under the Ministry of Statistics and Programme Implementation.

* The base year for CPI calculations is 2012.

* Recently, the Ministry of Labour and Employment introduced a new series of CPI for Industrial Worker (CPI-IW) with a base year of 2016.

Policy Implications:

* The Monetary Policy Committee (MPC) uses CPI data to formulate monetary policy. Controlling inflation is a key objective.

* In April 2014, the Reserve Bank of India (RBI) adopted the CPI as its primary measure of inflation, replacing the Wholesale Price Index (WPI).

UPSC CURRENT AFFAIRS SIMPLIFIED

23 May 2024 08:05

ORDINANCES

Syllabus: POLITY AND GOVERNANCE

Context: Governor Arif Mohammed Khan returns ordinances on delimitation of local bodies, citing model code of conduct.

Learning Points:

* An ordinance is a decree or law promulgated by a state or national government without the consent of the legislature.

* It allows the executive branch to make laws when the legislative body (Parliament or state legislature) is not in session or when urgent matters demand immediate attention.

* Ordinances have the same force and effect as an act of the legislature but are of a temporary nature.

* The President /Governor can issue an ordinance only when either both or one of the Houses of Parliament is not in session.

* An ordinance promulgated when both Houses are in session is void.

Constitutional Provisions Regarding Ordinance in India:

* Article 123 empowers the President to promulgate ordinances during the recess of Parliament.

* Article 213 empowers the Governor to promulgate ordinances during the recess of the State Legislature.

Validity and Limitations:

* An ordinance promulgated by the President has a maximum validity of six months and six weeks from the date of its promulgation.

* The maximum gap between two sessions of the Indian Parliament cannot be more than six months.

* The ordinance should be ratified by Parliament within six weeks of its reassembly.

UPSC CURRENT AFFAIRS SIMPLIFIED

22 May 2024 09:00

Q1. With reference to Gross Domestic Product (GDP), consider the following statements:

1.  GDP is the monetary value of all the final goods and services produced within a country’s borders in a specific time period.

2.  GDP allows us to compare economic performance across countries and regions.

Which of the statements given above are correct?

UPSC CURRENT AFFAIRS SIMPLIFIED

22 May 2024 08:57

SCARBOROUGH SHOAL

Syllabus: GEOGRAPHY - WORLD MAP

Context: The Philippines recently challenged China to open Scarborough Shoal to international scrutiny after it accused Beijing of destroying the shoal's marine environment.

Learning Points:

* The Scarborough Shoal, also known as Scarborough Reef, is a series of small rocks and islands located in the South China Sea, approximately 220 kilometers (120 nautical miles) west of the Philippine Island of Luzon.

* The shoal is formed into a triangle shape and consists of small rocks and reefs.

* The deep waters surrounding the shoal make it a productive fishing area, rich in marine life.

Territorial Dispute:

* Both the People’s Republic of China and the Philippines claim Scarborough Shoal lies within their territory.

* China refers to the shoal as Huangyan Island, asserting a historical claim dating back to the Yuan Dynasty in the 1200s.

* The Philippines claims the area based on geography, as it is much closer to Luzon (the Philippines’ main island) than to China.

Control and Presence:

* Although there are no permanent structures on Scarborough Shoal, China has effectively controlled it since 2012.

* China maintains a constant coast guard presence at the feature.

UPSC CURRENT AFFAIRS SIMPLIFIED

22 May 2024 08:49

GROSS DOMESTIC PRODUCT (GDP)

Syllabus: ECONOMY

Context: Rating agency ICRA Ltd has said it expects India's Gross Domestic Product (GDP) growth to moderate to a four-quarter low of 6.7% Q4 of 2024. For the full fiscal year, it expects GDP growth of 7.8%.

Learning Points:

* Gross Domestic Product (GDP) is the monetary value of all the final goods and services produced within a country’s borders in a specific time period, generally 1 year.

* It is a broad measurement of a nation’s overall economic activity.

* It reflects the economic vitality of a nation and serves as an indicator of growth, contraction, or stagnation.

Calculation:

* To calculate GDP, we sum up the final prices of goods and services produced in an economy.

* This includes private and public consumption, government spending, investments, additions to private inventories, and the foreign balance of trade.

Types of GDP:

*   Nominal GDP: Based on current market prices.

* Real GDP: Adjusted for inflation, calculated using a stable base year price.

Importance of GDP:

Comparison: GDP allows us to compare economic performance across countries and regions.

Policy Decisions: Governments use GDP data to formulate economic policies.

* Investment Decisions: Investors consider GDP growth when making investment choices.

Limitations:

* Excludes Non-Market Activities: GDP only considers market transactions (goods and services bought and sold). It excludes non-market activities like unpaid household work, volunteer work, and the informal economy. As a result, it may not fully capture the overall well-being of a society.

* Quality of Life: GDP doesn’t account for income distribution or quality of life. A country with high GDP may still have significant poverty or inequality.

* Environmental Impact: GDP doesn’t consider environmental costs. GDP growth can lead to environmental degradation (e.g., pollution, resource depletion) without reflecting these negative consequences.

UPSC CURRENT AFFAIRS SIMPLIFIED

21 May 2024 07:03

Q1. Consider the following statements:

Statement-I:

The International Criminal Court (ICC) is a permanent court that prosecutes serious international crimes committed by individuals.

Statement-II:

ICC has jurisdiction over the signatory countries to persecute individuals for extraterritorial crimes such as genocide, war crimes, humanitarian crimes, and territorial aggression.

Which one of the following is correct in respect of the above statements?

(a)  Both Statement-I and Statement-II are correct and Statement-II is the correct explanation for Statement-I

(b)  Both Statement-I and Statement-II are correct and Statement-II is not the correct explanation for Statement-I

(c)  Statement-I is correct but Statement-II is incorrect

(d)  Statement-I is incorrect but Statement-II is correct

UPSC CURRENT AFFAIRS SIMPLIFIED

21 May 2024 07:01

INTERNATIONAL CRIMINAL COURT (ICC)

Syllabus: INTERNATIONAL ORGANISATIONS

Context: The International Criminal Court (ICC) recently sought a Gaza ‘war crimes’ arrest warrant against Israel Prime Minister Benjamin Netanyahu.

Learning Points:

* The International Criminal Court (ICC) was established by the Rome Statute on July 1, 2002.

* The International Criminal Court (ICC) is a permanent court that prosecutes serious international crimes committed by individuals.

* It has jurisdiction over the signatory countries to persecute individuals for extraterritorial crimes such as genocide, war crimes, humanitarian crimes, and territorial aggression.

* The ICC is the first intergovernmental organisation that works as a court for criminal cases.

* It has jurisdiction over the most serious crimes of concern to the international community: genocide, war crimes, crimes against humanity, and the crime of aggression.

* Its headquarters are in The Hague, Netherlands.

* While 123 nations recognize the ICC’s authority, notable exceptions include the US, China, Russia, and India.

* The court is funded by contributions from states parties and voluntary donations from various entities. Unlike the International Court of Justice (ICJ), which handles disputes between states, the ICC focuses on prosecuting individuals.

* It can exercise jurisdiction if the national court is unable or unwilling to do so, and only for offenses committed after the Statute’s entry into force in 2002.

* It is intended to complement, not replace, national judicial systems.

* The ICC has six official languages (English, French, Arabic, Chinese, Russian, and Spanish) and two working languages (English and French).

UPSC CURRENT AFFAIRS SIMPLIFIED

18 May 2024 09:26

Q1. With reference to the Asset Reconstruction Companies (ARCs) in India, consider the following statements:

1. Asset Reconstruction Companies (ARCs) are specialized financial institutions that purchase the bad debts of a bank at a mutually agreed value.

2. The required funds to purchase such debts can be raised from Qualified Buyers.

3. They function under the supervision and control of the SEBI.

How many of the above given statements are correct?

UPSC CURRENT AFFAIRS SIMPLIFIED

18 May 2024 09:25

FREE MOVEMENT REGIME (FMR)

Syllabus: POLITY ANG GOVERNANCE

Context: Mizo tribals threaten to take up arms if the Centre goes ahead with its plan to scrap Free Movement Regime (FMR).

Learning Points:

* The Free Movement Regime (FMR) is an agreement between India and Myanmar.

* It was established in 2018 as part of India’s Act East policy.

*  Under the FMR, individuals residing near the India-Myanmar border can move up to 16 km without a visa.

*  They need a one-year border pass for stays lasting up to two weeks in the neighbouring country.

* The FMR aimed to facilitate local border trade, improve access to education, and strengthen diplomatic ties.

*   However, India has recently decided to review the FMR due to security concerns related to illegal immigration, drug trafficking, and insurgency activities.

*  India's decision to fence the entire 1,643-kilometre stretch of border with Myanmar, could result in the end of FMR permanently.

*  India- Myanmar border runs from the tripoint with China in the north to the tripoint with Bangladesh in the south.

UPSC CURRENT AFFAIRS SIMPLIFIED

17 May 2024 13:00

Q1. Consider the following:

1.  Investigate cases of money laundering

2.  Summon any person for evidence or record production

3.  Confiscate property
involved in money laundering

How many of the above are the powers of the Enforcement Directorate under the Prevention of Money Laundering Act (PMLA)?

UPSC CURRENT AFFAIRS SIMPLIFIED

17 May 2024 12:58

ENFORCEMENT DIRECTORATE (ED)

Syllabus: POLITY AND GOVERNANCE

Context: The Supreme Court of India has recently made a significant ruling regarding the powers of the Enforcement Directorate (ED) under the Prevention of Money Laundering Act (PMLA).  The court held that the ED cannot arrest an accused under Section 19 of the PMLA after a special court has taken cognisance of the complaint of money laundering.

Learning Points:

* The Enforcement Directorate (ED) is India’s financial watchdog, serving as both a law enforcement agency and an economic intelligence unit.

* The ED traces its origins back to May 1, 1956.

* The ED operates under the Department of Revenue within the Ministry of Finance.

* Its headquarters are in New Delhi, led by the Director of Enforcement. Regional offices exist in Mumbai, Chennai, Chandigarh, Kolkata, and Delhi.

* Recruitment includes officers from various backgrounds, such as IRS (Indian Revenue Services), IPS (Indian Police Services), and IAS (Indian Administrative Services).

* The ED investigates and tackles economic crimes such as money laundering, foreign exchange violations, and corruption.

* It enforces economic laws and regulations, ensuring compliance and addressing violations related to financial transactions.

* Recent amendments allow extending the tenure of ED directors from two years to up to five years.

Objectives and Key Acts:

* The ED enforces three critical acts:

  Foreign Exchange Management Act, 1999 (FEMA)

  Prevention of Money
Laundering Act, 2002 (PMLA)

  Fugitive Economic Offenders Act, 2018 (FEOA)

* The PMLA aims to combat money laundering by:

  Preventing and controlling money laundering.

  Confiscating and seizing proceeds obtained from laundered money.

  Addressing other issues related to money laundering in India.

Powers and Responsibilities:

* Under the PMLA, the ED has the authority to:

  Investigate cases of money laundering.

  Summon any person for evidence or record production.

  Confiscate property
involved in money laundering.

UPSC CURRENT AFFAIRS SIMPLIFIED

16 May 2024 09:20

Q2. With reference to the Insurance Surety Bonds (ISBs), consider the following statements:

1.  Insurance Surety Bonds are financial instruments where insurance companies act as a ‘Surety’ to provide a guarantee that the contractor will fulfil its obligations as per the agreed terms.

2.  These bonds serve as a third-party guarantee issued by insurance companies on behalf of the applicant to beneficiaries and authorities.

3.  ISBs often have lower costs compared to traditional bank guarantees.

How many of the statements given above are not correct?