20 May 2023

• Economy: The RBI announced withdrawal of Rs 2,000 banknotes from circulation under the Clean Note Policy. Exchange deadline: 30 September 2023.
• Karnataka: Siddaramaiah was sworn in as Chief Minister. D.K. Shivakumar became Deputy Chief Minister.
• Defence: India's defence production exceeded 1 lakh crore rupees in FY 2022-23. Exports reached 15,920 crore rupees.
• Science: India's first commercial flight using indigenous sustainable aviation fuel (SAF) flew from Pune to Delhi.
• Data: The World Metrology Day theme was "Measurements supporting the global food system."

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GS area: Economy (Monetary policy, Currency management)

The Reserve Bank of India announced on 19 May 2023 that it would withdraw Rs 2,000 denomination banknotes from circulation.

• Legal basis: Section 26 of the RBI Act 1934 empowers the RBI to recommend demonetisation. The withdrawal is under the Clean Note Policy, which periodically removes old or soiled notes.
• This is not demonetisation: The notes remain legal tender. Holders can deposit them in accounts or exchange them at bank branches and RBI offices.
• Exchange deadline: 30 September 2023.
• Exchange limit: Rs 20,000 per transaction.
• When notes were introduced: Post the November 2016 demonetisation of Rs 500 and Rs 1,000 notes.
• Printing stopped: The RBI stopped printing Rs 2,000 notes in 2018-19.
• Share in circulation: Only 10.8 per cent of total currency in circulation as of March 2023.

Static linkage: RBI Act, Clean Note Policy, currency management (Economy).

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GS area: Polity (Governance, elections)

Siddaramaiah was sworn in as Karnataka's Chief Minister on 20 May 2023. This was his second term. D.K. Shivakumar became Deputy Chief Minister and Congress state president.

• Election result recap: Congress won 135 of 224 seats on 13 May. Majority mark: 113.
• CM selection: A contest between Siddaramaiah (Kuruba community, backward class leader) and Shivakumar (Vokkaliga community leader) was resolved in Siddaramaiah's favour for the CM role.
• Five guarantees: Congress had campaigned on five guarantees: 200 units free electricity (Gruha Jyoti), Rs 2,000 monthly to women household heads (Gruha Lakshmi), 10 kg free food grain (Anna Bhagya), 25 litres free milk monthly (Yuva Nidhi), and free bus travel for women (Shakti scheme).

Static linkage: State elections, formation of government, election promises (Polity).

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GS area: Economy (Defence, Industrial policy)

India's defence production crossed 1 lakh crore rupees (approximately 12 billion US dollars) in FY 2022-23.

• Growth: Over 12 per cent growth. Defence production has more than doubled over five years.
• Defence exports: Reached 15,920 crore rupees in FY 2022-23.
• Target: Government targets 1,75,000 crore rupees in defence manufacturing by 2024-25, including 5 billion US dollars in exports.
• Key scheme: iDEX (Innovations for Defence Excellence) fosters defence innovation by startups, MSMEs and individual innovators.
• Import reduction: Positive indigenisation lists prohibit import of listed items after cut-off dates, forcing domestic production.

Static linkage: Defence industry, Make in India, PLI and iDEX (Economy).

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GS area: Environment, Economy (Green aviation)

AirAsia India flight i5-767 flew from Pune to Delhi using an indigenously produced Sustainable Aviation Fuel (SAF) blend. This was India's first commercial passenger flight to use SAF.

• SAF source: Indian Oil Corporation and Praj Industries produced the SAF. Blending was at 1 per cent.
• What SAF is: Aviation fuel produced from biological sources (used cooking oil, agricultural residues, etc.) or synthetic routes (green hydrogen and CO2 capture).
• Emission benefit: SAF reduces lifecycle CO2 emissions by up to 80 per cent compared to conventional aviation fuel.
• Global CORSIA link: The Carbon Offsetting and Reduction Scheme for International Aviation requires airlines to offset emissions growth. SAF blending is a compliance path.

Static linkage: Green aviation, biofuels, CORSIA (Environment/Economy).

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GS area: Science and Technology

World Metrology Day is observed on 20 May, marking the anniversary of the Metre Convention signed on 20 May 1875.

• Theme 2023: "Measurements supporting the global food system."
• Metre Convention: An international treaty establishing the metric system. Signatory organisations: Bureau International des Poids et Mesures (BIPM) and associated national metrology institutes.
• India's metrology body: National Physical Laboratory (CSIR-NPL), New Delhi, is the custodian of India's national measurement standards.
• Relevance to food systems: Accurate measurement of pesticide residues, nutrient content, food safety parameters and trade quantities all depend on reliable metrology.

Static linkage: Science institutions, measurement standards (Science and Technology).

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• Liberalised Remittance Scheme: The Finance Ministry waived the 20 per cent Tax Collected at Source on overseas credit card spending up to 7 lakh rupees annually. The earlier rule had included credit card spending under the LRS limit.
• Lakes losing water: A study found that 53 per cent of the world's largest lakes are losing water (1992 to 2020). Over 30 Indian lakes showed decline. This affects 33 per cent of the global population that depends on these lakes.
• STARS programme: A World Bank-aided school education improvement programme across 6 Indian states. Total value: 500 million US dollars.

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