Daily Current Affairs for UPSC Civil Services Exam – 03 July 2021

Daily Current Affairs for UPSC Civil Services Exam – 03 July 2021

In Today’s News:

  1. Gender Samvaad.
  2. Forex Reserves.
  3. OECD/G20 tax deal.
  4. Trafficking in Persons report.

1. Gender Samvaad

News summary

The Second Gender Samvaad was organized by the Ministry of Rural Development.

Prelims GS – Governance

Gender Samvaad:
  • Gender Samvaad is an attempt to create a common platform for generating greater awareness on NRLM’s interventions, and the impact of its gender operational strategy, across the country.
  • The Samvaad focuses on highlighting best practices and the lessons learned in implementing gender-responsive interventions, with a focus on hearing voices from the states and the field.
  • The Second Gender Samvaad was organized by the Ministry of Rural Development’s Deendayal Antyodaya Yojana-National Rural Livelihoods Mission (DAY-NRLM) and the Initiative for What Works to Advance Women and Girls in the Economy (IWWAGE).

Click here to view the official PIB release dated 2.7.2021.

2. Forex reserves

News Summary

India’s forex reserves increase to a record high of $608.99 billion as per RBI data for the week ended on 25th June 2021.

Prelims GS – Economic Development

Foreign Exchange Reserves:
  • Foreign Exchange Reserves of India consists of :
    • Foreign Currency Assets
    • Gold
    • SDRs
    • Reserve position in the IMF.
  • The major part of Forex reserves is occupied by Foreign Currency Assets. followed by Gold, SDRs, and the Reserve position in the IMF.
Foreign Currency Assets:
  • FCA (Foreign Currency Assets): FCA is maintained as a multi-currency portfolio comprising major currencies, such as US dollar, Euro, Pound sterling, Japanese yen, etc., and are valued in terms of US dollars.
SDR: (Special Drawing Rights)
  • The SDR is an international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves.
  • The value of the SDR is based on a basket of five currencies—the U.S. dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.
  • The SDR serves as the unit of account of the IMF and some other international organizations.
  • The SDR is neither a currency nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members.
  • SDRs can be exchanged for these currencies.

Courtesy: IMF

Reserve position in the IMF:
  • A reserve tranche is a portion of the required quota of currency each member country must provide to the International Monetary Fund (IMF) that can be utilized for its own purposes—without a service fee or economic reform conditions.
  • The IMF is funded through its members and their quota contributions.
  • The reserve tranche is basically an emergency account that IMF members can access at any time without agreeing to conditions or paying a service fee. That is, a portion of a member country’s quota can be withdrawn free of charge at its own discretion.

3. OECD/G20 tax deal

News Summary

India has joined OECD/G20 Inclusive framework tax deal

Prelims GS – Economic Development

OECD/G20 tax deal:
  • The majority of the members of OECD/G20 Inclusive Framework on Base Erosion and Profit Shifting including India adopted a high-level statement containing an outline of a consensus solution to address the tax challenges arising from the digitalization of the economy.
  • The proposed solution consists of two components-
    • Pillar One is about the reallocation of an additional share of profit to the market jurisdictions and
    • Pillar Two consisting of minimum tax and subject to tax rules.
  • Some significant issues including share of profit allocation and scope of subject to tax rules, remain open and need to be addressed.

Click here to view the official PIB release.

BEPS:
  • Base erosion and profit shifting (BEPS) refers to tax planning strategies used by multinational enterprises that exploit gaps and mismatches in tax rules to avoid paying tax.
  • Developing countries’ higher reliance on corporate income tax means they suffer from BEPS disproportionately.
  • BEPS practices cost countries USD 100-240 billion in lost revenue annually.
  • Working together within OECD/G20 Inclusive Framework on BEPS, over 135 countries and jurisdictions are collaborating on the implementation of 15 measures to tackle tax avoidance, improve the coherence of international tax rules and ensure a more transparent tax environment.
  • The BEPS package provides 15 Actions that equip governments with the domestic and international instruments needed to tackle tax avoidance.

Click here to know more about BEPS on the official website.

4. Trafficking in Persons report

News Summary

Trafficking in Persons report was released annually for the year 2021.

Prelims GS – World News

Trafficking in Persons report:
  • Trafficking in Persons report was released by the U.S. State Department.
  • Tier 1 refers to the Countries whose governments fully meet the TVPA’s (Trafficking Victims Protection Act 2000)  minimum standards for the elimination of trafficking.
  • Tier 2 refers to the Countries whose governments do not fully meet the TVPA’s minimum standards but are making significant efforts to bring themselves into compliance with those standards.
  • Tier 3 refers to the Countries whose governments do not fully meet the TVPA’s minimum standards and are not making significant efforts to do so.(eg: China)
  • India is placed in Tier 2 of the list.

Click here to know more on the official document.

 

 

 

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