Current Affairs 28 February 2022

CONTENTS

1. SWIFT
2. Judiciary needs more HC judges: CJI
3. Triple Talaq a ‘social evil’ : PM Modi
4. Fair and Remunerative Price (FRP) for Sugarcane
5. National Polio Immunization Drive for 2022

SWIFT

Context:

The U.S., Europe and several other western nations are moving to exclude Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT), an international network for banks to facilitate smooth money transactions globally. This could be the strongest economic sanction against Russia over its military moves in Ukraine, as it will potentially cut off the country from receiving international payments.

Relevance:

GS III- Indian Economy

Dimensions of the Article:

1. What is SWIFT?
2. Exclusion from SWIFT
3. How is the organisation governed?

What is SWIFT?

• SWIFT is a messaging network used by banks and financial institutions globally for quick and faultless exchange of information pertaining to financial transactions.
• The Belgium-headquartered SWIFT connects more than 11,000 banking and securities organisations in over 200 countries and territories.
• Each participant on the platform is assigned a unique eight-digit SWIFT code or a bank identification code (BIC).
  • Example: If a person, say, in New York with a Citibank account, wants to send money to someone with an HSBC account in London, the payee would have to submit to his bank, the London-based beneficiary’s account number along with the eight-digit SWIFT code of the latter’s bank.
  • Citi would then send a SWIFT message to HSBC.
  • Once that is received and approved, the money would be credited to the required account.
• SWIFT is merely a platform that sends messages and does not hold any securities or money.
• It provides standardised and reliable communication to facilitate the transaction.

Exclusion from SWIFT

• If a country is excluded from the most participatory financial facilitating platform, its foreign funding would take a hit, making it entirely reliant on domestic investors.
• This is particularly troublesome when institutional investors are constantly seeking new markets in newer territories.
• An alternative system would be cumbersome to build and even more difficult to integrate with an already expansive system.
• SWIFT, first used in 1973, went live in 1977 with 518 institutions from 22 countries, its website states.
• SWIFT itself had replaced the much slower and far less dynamic Telex.
• Certain Iranian banks were ousted from the system in 2018 despite resistance from several countries in Europe.
  • “This step, while regrettable, was taken in the interest of the stability and integrity of the wider global financial system, and based on an assessment of the economic situation,” SWIFT states on its website.

How is the organisation governed?

• SWIFT claims to be neutral. Its shareholders, consisting of 3,500 firms across the globe, elect the 25-member board, which is responsible for oversight and management of the company.
• It is regulated by G-10 central banks of Belgium, Canada, France, Germany, Italy, Japan, The Netherlands, the United Kingdom, the United States, Switzerland, and Sweden, alongside the European Central Bank.
• Its lead overseer is the National Bank of Belgium.
• The SWIFT oversight forum was established in 2012.
• The G-10 participants were joined by the central banks of India, Australia, Russia, South Korea, Saudi Arabia, Singapore, South Africa, the Republic of Turkey, and the People’s Republic of China.
• In 2021, the SWIFT financial messaging platform had recorded an average of 42 million FIN messages per day, as per the data on its website.
• The full-year figure was an 11.4% growth on a year-over-year basis.
• Europe, West Asia, and Africa, combined sent approximately 4.66 billion messages.
• The Americas and the United Kingdom stood second with 4.42 billion interactions, with the Asia Pacific on third with an approximate 1.50 billion messages.

-Source: The Hindu, Indian Express

Judiciary Needs More HC Judges: CJI

Context:

Chief Justice of India N.V. Ramana said there was a need to both increase the number of judges in High Courts and urgently fill existing vacancies.

Relevance:

GS-II: Polity and Governance (Constitutional Provisions, Indian Judiciary)

Dimensions of the Article:

1. What is the Collegium System?
2. Working of the Collegium System and NJAC
3. Appointment procedure of HC Judges
4. Transfer procedure of HC Judges

Click Here To Read More: Judiciary Needs More HC Judges: CJI

Triple Talaq a ‘social evil’ : PM Modi

Context:

PM said that there has been a drastic 80% decrease in “triple talaq” cases since the law was enacted against the practice in September 2019

Relevance:

GS-II Social Justice

Dimensions of the Article:

1. History of Triple Talaq and Legislation
2. The Muslim Women (Protection of Rights on Marriage) Bill, 2019
3. Arguments favouring the bill
4. Arguments opposing the bill

Click Here To Read More: Triple Talaq a ‘social evil’ : PM Modi

Fair and Remunerative Price (FRP) for Sugarcane

Context:

Maharashtra Government issued a government resolution which will allow sugar mills to pay the basic Fair and Remunerative Price (FRP) in two tranches.

Relevance:

GS-III: Agriculture (Agricultural Pricing and Marketing, Food Security)

Dimensions of the Article:

1. What are the changes in the government resolution?
2. What is Fair and Remunerative Price (FRP) for Sugarcane?
3. What are the Concerns behind FRP for Sugarcane
4. MSP for Sugar
5. Sugar Industry in India

Click Here To Read More: Fair and Remunerative Price (FRP) for Sugarcane

National Polio Immunization Drive for 2022

Context:

Minister for Health and Family Welfare launched the National Polio Immunization Drive for 2022 by administering polio drops to children below five years of age in the Ministry of Health and Family Welfare. 

Relevance:

GS II- Health

Dimensions of the Article:

1. About Polio National Immunization Drive and Polio National Immunization Day 2022 (NID) :
2. What is Polio?
3. Recent Outbreaks of Polio
4. Polio in India
5. India’s Pulse Polio Programme
6. Steps taken by the Government to maintain polio free status in India

Click Here To Read More: National Polio Immunization Drive for 2022