1.Competition Commission of India

THE HINDU

GS-3 ECONOMICS

In News

The Competition Commission of India (CCI) has expressed concerns over the proposed merger between Reliance Industries and Walt Disney in India.

About

As per the Competition (Amendment) Act 2023, if the CCI suspects a merger could harm competition (causing an appreciable adverse effect on competition or AAEC), it asks the involved parties to justify the merger within 25 days.
Earlier, Reliance, Viacom 18 Media Private Ltd, and Walt Disney Company signed an agreement to create a joint venture combining Viacom18 and Star India.
The merger could give the new entity almost complete control over digital and TV cricket rights, including the Indian Premier League (IPL).
In the past, the CCI fined Google ₹1,337.76 crore for anti-competitive practices related to Android devices.

Adverse Effect on Competition (AAEC) & Its Impacts

What It Means: AAEC happens when business practices, mergers, or agreements harm competition in a market.
Impacts:
- Reduced Consumer Choices: Fewer options in the market.
- Higher Prices: Less competition leads to higher prices.
- Barrier to Entry for New Players: Makes it hard for new businesses to compete.
- Exploitation of Market Power: Companies may impose unfair conditions.
- Decreased Innovation: Less competition reduces the motivation to innovate.

About the Competition Commission of India (CCI)

The CCI is an autonomous statutory body created in 2009 under the Competition Act, 2002.
It aims to eliminate practices harming competition, promote market competition, protect consumer interests, and ensure market freedom.

2. Regional Rural Banks (RRBs)

GS-3 ECONOMY

Context

The Finance Minister recently reviewed the performance of nine Regional Rural Banks (RRBs) from five states.

About

The meeting discussed business performance, technology upgrades, MSME growth, and financial inclusion in rural areas.
The RRBs were encouraged to raise awareness about government schemes, especially in aspirational districts.

Achievements of RRBs

Capital to Risk (Weighted) Assets Ratio (CRAR): Improved from 7.8% in FY 2021 to 13.7% in FY 2024.
Profitability: Shifted from a ₹41 crore loss in FY 2021 to a ₹2,018 crore net profit in FY 2024.
Gross Non-Performing Assets (GNPA): Reduced to a ratio of 3.9%.

About Regional Rural Banks (RRBs)

Established in 1975 based on the Narasimham Committee recommendations to address rural credit needs.
The first RRB, Prathama Grameen Bank, was set up on 2nd October 1975.
RRBs are Indian Scheduled Commercial Banks operating regionally, primarily serving rural areas.

Operation of RRBs

Functions: Offer banking services in rural and semi-urban areas, handle government schemes like MGNREGA wages and pensions, and provide additional services like lockers, debit/credit cards, and mobile banking.

Ownership of RRBs

Equity distribution:
- Central Government: 50%
- Sponsor Bank: 35%
- State Government: 15%

Issues with RRBs

High Non-Performing Assets (NPAs): Particularly in agriculture.
Limited Capital Base: Restricts growth and technology investments.
Operational Inefficiencies: Outdated infrastructure and lack of skilled staff.
Regulatory Constraints: Strict norms and capital requirements.
Mobilization Issues: Difficulty attracting deposits from wealthier rural populations.

Significance of Regional Rural Banks (RRBs)

Financial Inclusion: Provide banking in remote areas.
Support to Agriculture: Offer credit for farming and related activities.
Promoting Rural Entrepreneurship: Finance small enterprises and self-help groups.
Poverty Alleviation: Offer microfinance and loans to the poorest.
Implementation of Government Schemes: Help execute programs like PMJDY and PMJAY.
Stabilizing Rural Credit: Offer regulated loans, reducing reliance on costly informal lenders.

Way Ahead

Structural Consolidation: Merge smaller or weaker RRBs to enhance efficiency.
Recapitalization: Infuse more capital to strengthen finances.
Periodic Reviews and Capacity Building: Regularly train and assess RRB employees.

3. Eri Silk

TIMES OF INDIA

Context

The North Eastern Handicrafts and Handlooms Development Corporation (NEHHDC) has received the OEKO-TEX certification from Germany for its Eri silk.

About Eri Silk

Known as the world’s only vegan silk because the moth is not killed during production.
Also called Ahimsa Silk.
Mainly produced in Northeast India, parts of China, and Japan.
Has a Geographical Indication (GI) tag from Assam.

Properties

Derived from the Samia Cynthia Ricini or Philosamia Ricini moth.
The fabric is coarse, fine, dense, strong, durable, and elastic.
Isothermal Properties: Cool in summer and warm in winter.

About OEKO-TEX Certification

Ensures textiles are free from harmful substances and produced under eco-friendly conditions.

4. Rashtriya Vigyan Puraskar

PRESS INFORMATION BUREAU

Miscellaneous

Context

The President of India presented the Rashtriya Vigyan Puraskar-2024 at Rashtrapati Bhavan.

About Rashtriya Vigyan Puraskar 2024

Recognizes exceptional contributions to science and technology.
Eligibility: Open to Persons of Indian Origin (PIOs), with no age limits. Awards include certificates and medallions.
A committee, led by the principal scientific adviser, selects the awardees. Committee members are ineligible for awards during their tenure.

Award Categories and Awardees

Vigyan Ratna Award: Lifetime contributions in science and technology.
- Recipient: Prof. Govindarajan Padmanabhan for pioneering molecular biology and biotechnology research.
Vigyan Shri Awards: Distinguished contributions in various scientific fields.
- Recipients: 13 scientists across diverse disciplines.
Vigyan Yuva-SSB Award: Recognizes young scientists.
- Recipients: 18 scientists for contributions like Indian Ocean warming studies and indigenous 5G development.
Vigyan Team Award: Given to research teams.
- Recipient: Chandrayaan-3 Team.

5. Gomti River

Indian Express

GS-1 GEOGRAPHY

Context

India denied Bangladesh’s claim that floods in eastern Bangladesh were caused by the opening of the Dumbur dam upstream of the Gumti river in Tripura.