3 January 2024

• Governance: MGNREGA wages shifted to the Aadhaar-Based Payment System, the Centre mandating it for over 1,100 government schemes.
• Social justice: ULFA's pro-talks faction signed a peace pact with the Centre and the Assam government, closing a decades-long insurgency chapter.
• Economy: the Sukanya Samriddhi Yojana interest rate was raised to 8.2 per cent for the January-March 2024 quarter.
• Finance: the FIU-India issued show-cause notices to nine offshore crypto exchanges operating without AML-CFT compliance.

GS area: Internal security, Polity (North-east)

The Centre and the Assam government signed a peace agreement with the pro-talks faction of the United Liberation Front of Asom on 3 January. The agreement marked a significant step toward ending the group's armed movement that had defined north-east insurgency politics for decades.

• ULFA: founded in 1979 with the demand for a sovereign Assam. The organisation split into a pro-talks faction willing to engage with the government and an anti-talks faction that continued armed operations.
• Significance: most major north-east insurgent groups have either signed peace agreements or entered ceasefire arrangements since 2003. The ULFA pact extends that pattern.
• Prelims angle: know the distinction between ULFA-PTF (pro-talks faction) and ULFA-Independent. Questions on north-east security groups appear regularly.

Static linkage: insurgency and internal security (Polity and IR).

GS area: Governance, Economy (government savings schemes)

The interest rate on the Sukanya Samriddhi Yojana was raised from 8 per cent to 8.2 per cent for the January-March 2024 quarter.

• Launch and mandate: launched in 2015 under the Beti Bachao, Beti Padhao campaign. The scheme creates a dedicated savings account for girls below the age of 10.
• Account limits: a family may open a maximum of two accounts.
• Deposit range: minimum Rs 250 per year; maximum Rs 1.5 lakh per year.
• Maturity: the account matures 21 years after opening, or when the account holder marries, whichever comes first.
• Withdrawal: 50 per cent withdrawal is permitted once the girl turns 18 for educational purposes.
• Tax treatment: deposits qualify for Section 80C deduction. Interest and maturity proceeds are fully tax-free.

Static linkage: government savings schemes, women and child welfare.

GS area: Economy, Governance (financial regulation)

The Financial Intelligence Unit-India issued show-cause notices to nine offshore Virtual Digital Asset service providers, including Binance and Huobi, for operating in India without anti-money-laundering and counter-terrorist-financing compliance.

• FIU-India: India's central national agency for receiving and analysing financial intelligence. It reports to the Finance Ministry.
• PMLA 2002: the Prevention of Money Laundering Act requires Virtual Digital Asset Service Providers to register with FIU and maintain KYC and AML records.
• 31 VDA SPs registered: as of January 2024, 31 exchanges had registered. The unregistered offshore operators faced potential blocking.
• Regulatory gap: offshore platforms accessible to Indian users but incorporated abroad had claimed they did not need to comply. The notices challenged that position.

Static linkage: financial regulation, PMLA, digital assets.

GS area: Economy (banking, green finance)

The Reserve Bank of India clarified that green deposits are not mandatory for banks or non-banking financial companies.

• What they are: deposits specifically earmarked for financing environment-friendly projects. Banks can offer them to customers voluntarily.
• Eligible entities: scheduled commercial banks, deposit-taking NBFCs, and housing finance companies.
• Currency restriction: only Indian rupees are permitted.
• Excluded sectors: fossil fuels, nuclear power, hydropower projects above 25 MW, and landfill operations are excluded from eligible green uses.
• Verification: annual independent third-party audits are required.

Static linkage: banking regulation, RBI's role, green finance.

• Marine Energy Conversion Systems Sectional Committee: the Bureau of Indian Standards established a new committee for standardisation of marine energy technologies including tidal energy, wave energy, ocean thermal energy conversion, and salinity gradient power. BIS operates under the Ministry of Consumer Affairs.
• Chameleon Trojan malware: a new Android malware that disables biometric authentication and collects PINs was identified by security researchers. It attaches to legitimate apps and misuses the Accessibility service.