Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Reservation debate
The article highlights the issues with Maratha reservation judgement delivered by the Supreme Court which rejected the positive discrimination of lower classes of dominant caste.
About the verdict
- The Supreme Court rendered a unanimous verdict on the validity of the SEBC Act, 2018 that was to grant reservation to Marathas.
- The court held that the classification of Marathas as a socially and educationally backward class was unreasonable.
- Court held that Maratha belonged to a politically dominant caste with significant economic resources.
Justification for 50% limit
- The court also concluded that the majority opinion in the Indra Sawhney case was correct and that the limit of 50 per cent for caste-based reservation did not need consideration by a larger bench.
- The court justified the fixed quantitative limit on caste-based reservation by postulating that it was intrinsic to the fundamental principle of equality.
- The court highlighted the need to safeguard the interests of unreserved sections and said that all sections have progressed after 70 years of independence.
- Based on this, the court rejected the state’s argument that the breach of the limit was necessitated by the fact that the population of backward classes was over 80 per cent.
Missed opportunity to acknowledge growing socio-economic differentiation within the dominant castes
Growing income difference
- If in 2011-12, the average per capita income of the Marathas was second only to the Brahmins at Rs 36,548, against Rs 47,427.
- Their highest quintile -20 per cent of the caste group- got 48 per cent of the total income of the Marathas with a mean per capita income of Rs 86,750.
- The lowest quintile earned 10 times less (Rs 7,198) and the 40 per cent poorest got less than 13 per cent of the total income of the caste — and were lagging behind the Scheduled Castes elite.
- In fact, the mean incomes of the highest Dalit quintile, Rs 63,030, and that of the second-highest, Rs 28,897, were above those of the three lowest quintiles of the Marathas.
What explains growing income difference
- This is partly due to changes on the education front.
- The percentage of graduates among Dalits in 2004-05 was 1.9 per cent and has more than doubled to 5.1 per cent in 2011-12.
- The corresponding figure for the OBCs was 3.5 per cent and has doubled to 7.6 per cent, while for the Marathas it was 4.6 per cent in 2004-05 and has come up to 8 per cent in 2011-12.
- Correlatively, the percentage of salaried people among the Dalits was about 28 per cent in Maharashtra in 2011-12, as against 30 per cent among the Marathas.
Issues with the Maratha quota judgment
- The Court refused to recognise the need for positive discrimination of the lower classes of the dominant castes which continue to be seen as a dominant bloc.
- It fails to admit the complexity that the role of class has introduced in post-liberalisation India.
- This is unequivocal confirmation of a dated approach to social realities and a purely arithmetic limit that finds no expression in the Constitution.
- The judgement also raises the issue of judicial supremacy in the broad area of social policy as it could lead to undesirable exclusion of beneficiaries.
- The court seems to have forgotten its own observation in NM Thomas case that functional democracy postulates participation of all sections of the people and fair representation in administration is an index of such participation.
Conclusion
The Supreme Court has rejected the determination of Marathas as backward by holding that their relative deprivation and under-representation with regard to other sections of the general category did not entitle them to affirmative action.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: JAM trinity
Mains level: Paper 3- Digital payment boom in India
The article takes an overview of the progress made by India in the financial inclusion and role played by JAM trinity in it.
What is financial inclusion?
Financial inclusion is defined as the availability and equality of opportunities to access financial services. It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products.
Growing adoption of digital payment in India
- India overtook China to register the highest number of countrywide digital payments.
- Real-time transactions crossed 25 billion, much higher than China’s 15 billion in 2020, as per the report of ACI Worldwide.
- The report also stated that digital payments in India are set to account for 71.7 per cent of all payments by volume by the year 2025.
- The digital payment boom is indicative of a larger paradigm shift in the ease of access to financial services.
What are the contributing factors
- More and more people, across all strata, are adopting digital payments as it is convenient, safe and limits exposure.
- It is also a result of the nudges and diligent policy and technology frameworks created by the central government in the last few years.
- By building the Jan-Dhan-Aadhar-Mobile (JAM) and Universal Payment Interface (UPI) platform, the government has been creating the ground for greater financial inclusion.
Significance of JAM trinity
- While Jan Dhan was the first pillar of the ambitious JAM trinity, Aadhaar card seeding and bank account linkages to mobile numbers have empowered people in hitherto unimagined ways.
- The JAM trinity has helped people know their account status, receive scholarships and fellowships, get fertiliser and LPG subsidy, disability pensions and farm income support — directly into their accounts.
- The trinity also helped eliminate middlemen, frauds, and leakages due to corruption.
- In the past one year alone, Rs 4.3 lakh crore was transferred, in over 477 crore transactions under 319 schemes.
- With an estimated saving of Rs 1.8 lakh crore, the success of DBT is a big thumbs up for the central government.
- The aid that reached people during the pandemic under the PM Garib Kalyan package is indicative of the success of the government’s financial inclusion and digitisation efforts.
Conclusion
The unmissable digital and financial revolution that has been unleashed is hard to miss for anyone. The digital journey, however, is long and one hopes to see the positive trends sustaining given their transformative impact on the lives of Indians.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: GSAP
Mains level: Read the attached story
In a bid to infuse more liquidity in the market, the Reserve Bank of India (RBI) has announced undertake Government Securities Acquisition Program (G-SAP) 2.0 during the second quarter of FY22 and conduct secondary market purchase operations of Rs 1.20 lakh crore.
Answer this PYQ in the comment box:
Q.Consider the following statements:
- The Reserve Bank of India manages and services the Government of India Securities but not any State Government Securities.
- Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments.
- Treasury bills offer are issued at a discount from the par value.
Which of the statements given above is/are correct?
(a) 1 and 2 only
(b) 3 Only
(c) 2 and 3 only
(d) 1, 2 and 3
What are Government Securities?
- These are debt instruments issued by the government to borrow money.
- The two key categories are:
- Treasury bills (T-Bills) – short-term instruments which mature in 91 days, 182 days, or 364 days, and
- Dated securities – long-term instruments, which mature anywhere between 5 years and 40 years
Note: T-Bills are issued only by the central government, and the interest on them is determined by market forces.
Why G-Secs?
- Like bank fixed deposits, g-secs are not tax-free.
- They are generally considered the safest form of investment because they are backed by the government. So, the risk of default is almost nil.
- However, they are not completely risk-free, since they are subject to fluctuations in interest rates.
- Bank fixed deposits, on the other hand, are guaranteed only to the extent of Rs 5 lakh by the Deposit Insurance and Credit Guarantee Corporation (DICGC).
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Hailstorms
Mains level: NA
To help out horticulturists who face crop damage due to hailstorms, the Himachal Pradesh government will be testing the use of indigenously developed ‘anti-hail guns’.
What are anti-hail guns?
- An anti-hail gun is a machine that generates shock waves to disrupt the growth of hailstones in clouds, according to its makers.
- It comprises a tall, fixed structure somewhat resembling an inverted tower, several metres high, with a long and narrow cone opening towards the sky.
- The gun is “fired” by feeding an explosive mixture of acetylene gas and air into its lower chamber, which releases a shock wave (waves that travel faster than the speed of sound, such as those produced by supersonic aircraft).
- These shock waves supposedly stop water droplets in clouds from turning into hailstones, so that they fall simply as raindrops.
Answer this PYQ in the comment box:
Q.During a thunderstorm, the thunder in the skies is produced by the
- meeting of cumulonimbus clouds in the sky
- lightning that separates the nimbus clouds
- violent upward movement of air and water particles
Select the correct option using the codes given below:
(a) 1 only
(b) 2 and 3 only
(c) 1 and 3 only
(d) None of the above
How do they ‘prevent’ a hailstorm?
- It is this hail formation process that the shock waves from anti-hail guns try to disrupt in a radius of 500 meters, so that the water droplets fall down before they can be lifted by the updrafts.
- The machine is repeatedly fired every few seconds during an approaching thunderstorm.
- However, the effectiveness of anti-hail guns has remained a contentious issue.
How do Hailstorms occur?
- Hail is produced by cumulonimbus clouds, which are generally large and dark and may cause thunder and lightning.
- In such clouds, winds can blow up the water droplets to heights where they freeze into ice.
- The frozen droplets begin to fall but are soon pushed back up by the winds and more droplets freeze onto them, resulting in multiple layers of ice on the hailstones.
- This fall and rise is repeated several times, till the hailstones become too heavy and fall down.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Echolocation
Mains level: NA
A technique used by animals such as dolphins, whales, and bats to navigate their surroundings can also be used by blind people to get around better and have greater independence and well-being, researchers at Durham University in the UK have shown.
What is Echolocation?
- Echolocation, also called biosonar, is a biological sonar used by several animal species.
- Echolocating animals emit calls out to the environment and listen to the echoes of those calls that return from various objects near them.
- They use these echoes to locate and identify the objects.
What has the new study found?
- The same technique can help blind people locate still objects by producing clicking sounds from their mouth and hands.
- The researchers organized a 10-week training programme, in which 12 blind and 14 sighted volunteers aged between 21 and 79 were taught click-based echolocation.
- The volunteers were trained in distinguishing between the size of objects, orientation perception and virtual navigation.
- At the end of the training, the participants had been able to improve their ability to navigate using clicking noises either from one’s mouth, walking cane taps or footsteps.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: CIBER 2 Mission
Mains level: NA
A NASA-funded rocket’s launch window will open at the White Sands Missile Range in New Mexico, USA. The aim of this mission is to count the number of stars that exist in the Universe.
Answer this PYQ from CSP 2020 in the comment box:
Q.“The experiment will employ a trio of spacecraft flying in formation in the shape of an equilateral triangle that has sides one million kilometers long, with lasers shining between the craft.” The experiment in question refers to
(a) Voyager-2
(b) New horizons
(c) Lisa Pathfinder
(d) Evolved LISA
What is CIBER-2?
- In order to roughly estimate the number of stars in the Universe, scientists have estimated that on average each galaxy consists of about 100 million stars, but this figure is not exact.
- The figure of 100 million could easily be an underestimation, probably by a factor of 10 or more.
- To put this into perspective, an average of 100 million stars in each galaxy (there an estimated 2 trillion of them as per NASA), would give a total figure of one hundred quintillion stars or 1 with 21 zeroes after it.
- NASA notes that if this figure is accurate, it would mean that for every grain of sand on Earth, there are more than ten stars.
- But this calculation assumes that all stars are inside galaxies, which might not be true and this is what the CIBER-2 instrument will try to find out.
How will CIBER-2 count stars?
- NASA notes that the instrument will not actually count individual stars but it will instead detect the extragalactic background light
- It is all of the light that has been emitted throughout the history of the Universe.
- From all of this extragalactic background light, the CIBER-2 will focus on a portion of this called cosmic infrared background, which is emitted by some of the most common stars.
- Essentially, this approach is aiming to look at how bright this light is to give scientists an estimate of how many of these stars are out there.
- The ESA infrared space observatory Herschel also counted the number of galaxies in infrared and measured their luminosity previously.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SAGE Initiative
Mains level: Old age security
The Ministry of Social Justice and Empowerment has launched the SAGE (Seniorcare Aging Growth Engine) initiative and SAGE portal for elderly persons.
SAGE Initiative
- The SAGE will be a “one-stop access” of elderly care products and services by credible start-ups.
- The start-ups will be selected on the basis of innovative products and services.
- Their products should be able to provide across sectors such as health, housing, care centers, apart from technological access linked to finances, food and wealth management, and legal guidance.
- The start-ups who have applied will be selected by an independent screening committee of experts.
- A fund of upto Rs.1 crore as one-time equity will be granted to each selected start-up.
Why need such initiative?
- India’s elderly population is on the rise as per surveys.
- The share of elders, as a percentage of the total population in the country, is expected to increase from around 7.5% in 2001 to almost 12.5% by 2026, and surpass 19.5% by 2050.
- There is an urgent need to create a more robust eldercare ecosystem in India, especially in the post-COVID phase.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SPAG9
Mains level: NA
The National Institute of Immunology (NII) has received a trademark for India’s First Indigenous Tumor Antigen SPAG9.
About SPAG9
- India’s first indigenous tumor antigen SPAG9 was discovered by Dr Anil Suri in 1998 who is heading the Cancer Research Program at NII.
- In a recent development, the SPAG9 antigen has received the trademark ASPAGNII-TM.
- Currently, ASPAGNIITM is being used in dendritic cell (DC) based immunotherapy in cervical, ovarian cancer and will also be used in breast cancer.
What is immunotherapy?
- Immunotherapy is a new approach that exploits the body’s inner capability to put up a fight against cancer.
- With this approach, either the immune system is given a boost, or the T cells are “trained’’ to identify recalcitrant cancer cells and kill them.
- In this personalized intervention, those patients expressing SPAG9 protein can be treated with DC-based vaccine approach.
- In DC-based vaccine, patient’s cells called monocytes from their blood are collected and modified into what are called dendritic cells.
- These dendritic cells are primed with ASPAGNIITM and are injected back to the patient to help the ‘fighter’ cells, or T-cells, in the body to kill the cancer cells.
Why need such therapy?
- DC-based immunotherapy is safe, affordable and can promote antitumor immune responses and prolonged survival of cancer patients.
- The ASPAGNIITM is a true example of translational cancer research and the Atmanirbhar Bharat spirit.
- This will be a real morale boost in affordable, personalized, and indigenous products for cancer treatment.
Answer this PYQ in the comment box:
Q.‘RNA Interference (RNAi)’ technology has gained popularity in the last few years. why?
- It is used in developing gene silencing therapies
- It can be used in developing therapies for the treatment of cancer
- It can be used to developer hormone replacement therapies
- It can be used to produce crop plants that are resistant to viral pathogens
Select the correct answer using the code given below.
a) 1, 2 and 4
b) 2 and 3
c) 1 and 3
d) 1 and 4 only
The burden of cancer in India
- Cancer kills 8.51 lakh people in India every year (International Agency for Research on Cancer, 2020).
- As per World Health Organization (WHO), one in 10 Indians will develop cancer during their lifetime, and one in 15 will die of cancer.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- Section 124-A issue
Is the government entitled to the love and affection of the citizens? Answer to this question lies in the Kedar Nath judgment recently invoked by the Supreme Court in a case against a journalist. The article deals with this issue.
About the Kedar Nath judgement
- A two-judge bench of the Supreme Court observed that every journalist is entitled to the protection under the Kedar Nath judgment (1962) on the petition filed by journalist Vinod Dua.
- The court entertained Dua’s writ petition under Article 32.
- In the Kedar Nath judgement, the apex court had held that a citizen has the right to say or write whatever he likes about the government or its measures by way of criticism so long as he does not incite people to violence against the government or with the intention of creating public disorder.
- Section 124A read along with explanations is not attracted without such an allusion to violence.
Increasing use of the sedition law
- NCRB data shows that between 2016 to 2019, there has been a whopping 160 per cent increase in the filing of sedition charges with a conviction rate of just 3.3 per cent.
- Of the 96 people charged in 2019, only two could be convicted.
- A number of CAA (Citizenship Amendment Act) protesters are facing sedition charges.
Background of Section 124-A
- Section 124-A was not a part of the original Indian Penal Code drafted by Lord Macaulay and treason was confined just to levying war.
- It was inserted in 1870 in response to the Wahabi movement that had asked Muslims to initiate jihad against the colonial regime.
- It was argued that Wahabis are going from village to village and preaching that it was the sacred religious duty of Muslims to wage a war against British rule.
Way forward
- In 2018, the Law Commission had recommended that the sedition law should not be used to curb free speech.
- Let the criminal law revision committee working under the Ministry of Home Affairs make the bold recommendation of dropping the draconian law.
- A political consensus needs to be forged on this issue.
Conclusion
No government, as Mahatma Gandhi told Judge R S Broomfield, has a right to love and affection and people in a free country committed to the liberty of thought and freedom of expression should not be criminally punished for expressing their opinion about the government.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: COVAX
Mains level: Paper 2- Dealing with the vaccine inequality
Why vaccination gap is cause of worry
- By the end of May 2021, only 2.1% of Africans had received at least one dose of a COVID-19 vaccine.
- A widely vaccinated world population is the only way to end the pandemic; otherwise, the multiplication of variants is likely to undermine the effectiveness of existing vaccines.
- Vaccination is also a prerequisite for lifting the restrictions that are holding back our economies and freedoms.
- If the vaccination gap persists, it risks reversing the trend in recent decades of declining poverty and global inequalities.
- Such a negative dynamic would hold back economic activity and increase geopolitical tensions.
- The cost of inaction would for sure be much higher for advanced economies than what we collectively would have to spend to help vaccinate the whole world.
- The International Monetary Fund has proposed $50 billion plan in order to be able to vaccinate 40% of the world population in 2021 and 60% by mid-2022.
Need to resist the vaccine nationalism
- To achieve the goal set by IMF, we need closely coordinated multilateral action.
- We must resist the threat posed by linking the provision of vaccines to political goals and vaccine nationalism.
- The EU has been vaccinating its own population, while exporting large volumes of vaccines and contributing substantially to the vaccines roll-out in low-income countries.
- The EU has also exported 240 million doses to 90 countries, which is about as much as used within the EU.
- One-third of all COVAX doses delivered so far have been financed by the EU.
- India’s Vaccine Maitri is another example of global solidarity.
- However, this effort is still far from sufficient to prevent the vaccination gap from widening.
Way forward
- To fill widening vaccination gap, countries with the required knowledge and means should increase their production capacities, so that they can both vaccinate their own populations and export more vaccines.
- All countries must avoid restrictive measures that affect vaccine supply chains.
- We also need to facilitate the transfer of knowledge and technology, so that more countries can produce vaccines.
- Voluntary licensing is the privileged way to ensure such transfer of technology and know-how.
Conclusion
The COVID-19 pandemic has reminded us that health is a global public good. Our common global COVID-19 vaccine action to close the vaccination gap must be the first step toward genuine global health cooperation, as foreseen by the Rome Declaration recently adopted at the Global Health Summit.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Paper 2- India-Bangladesh relations
The article highlights the need for Indian leaders to respect the sentiments of Bangladesh by avoiding adverse comments during elections and recognition of Bangladesh’s importance for India.
Diplomacy with Bangladesh
- Long-standing bilateral problems: As a neighbour nearly surrounded on all territorial sides by India, there are the inevitable bilateral problems of long duration.
- Such problems include a perennially favourable balance of trade for India, drought and flood in the 54 transboundary rivers flowing from India to Bangladesh, and the smuggling of goods and vulnerable human beings across the approximately 4,100 kilometre land border.
- Cultural ties with India: There are several sections who regard their Bengali roots and traditions as being of equal validity as their religious affiliation, and treasure the linguistic and cultural ties with adjacent India.
- India’s expectations: For India’s attentions and support, India’s expectations are that a neighbour will keep India’s concerns in mind when devising and pursuing its policies.
Steps taken to consolidate the bilateral ties
- Bangladesh has successfully dealt with Muslim fundamentalist terrorists.
- Bangladesh has also controlled the Northeast militant movements sheltering in Bangladesh.
- This has facilitated the pacification of India’s Northeast.
- Bangladesh facilitated a considerable degree of connectivity between India and its Northeast by land, river and the use of Bangladeshi ports.
- Indian investments in Bangladesh have been encouraged.
- There are at least 100,000 Indian nationals now living and working in that country.
- For economic integration along with free movement of commerce and capital, the movement of persons on the lines of Nepal and Bhutan will have to be considered.
Consider the question “To a certain degree both India and Bangladesh depend on each other for security and stability. In light of this, take an overview of the consolidation of the bilateral ties between the two countries and discuss the issues that need to be addressed between the two countries.”
Conclusion
Responsible individuals on both sides of the border, whether in government or the Opposition, must be actively discouraged from words and actions detrimental to the consolidation of the existing cordiality.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Freedom of Speech
Mains level: Kedarnath Singh Guidelines
The Supreme Court has quashed the case of sedition filed against a journalist in Himachal Pradesh for allegedly making remarks against PM and the government’s handling of the migrant crisis during the Covid-19 lockdown last year.
What is the story?
- In a video, the journalist had criticized PM Modi and the Centre for the handling of the migrant crisis last year.
- A sedition case was filed against him under Section 124A of the IPC which penalizes sedition as punishable with either imprisonment ranging from three years to a lifetime, a fine, or both.
- He was charged for spreading misinformation or incorrect information and cause panic in the perception of the general public.
What has the court ruled?
- The case was quashed by SC. It held that his remarks constituted genuine criticism of the government and could not be labeled seditious.
- In doing so, the court also reiterated the principles in the landmark case on sedition — Kedar Nath Singh v Union of India (1962).
What are the Kedar Nath Singh guidelines?
- In the landmark 1962 Kedar Nath Singh case, the Supreme Court upheld the constitutional validity of the sedition law, it attempted to restrict its scope for misuse.
- The court held that unless accompanied by incitement or call for violence, criticism of the government cannot be labeled sedition.
Seven principles in the Kedar Nath Singh ruling specify situations in which the charge of sedition cannot be applied:
- The expression “ ‘the Government established by law’ has to be distinguished from the persons for the time being engaged in carrying on the administration. ‘Government established by law’ is the visible symbol of the State. The very existence of the State will be in jeopardy if the Government established by law is subverted.”
- The effect of subverting the Government by bringing that Government into contempt or hatred, or creating disaffection against it, would be within the penal statute because the feeling of disloyalty to the Government established by law or enmity to it imports the idea of a tendency to public disorder by the use of actual violence or incitement to violence.
- Comments, however strongly worded, expressing disapprobation of actions of the Government, without exciting those feelings which generate the inclination to cause public disorder by acts of violence, would not be penal.
- A citizen has a right to say or write whatever he likes about the Government, or its measures, by way of criticism or comment, so long as he does not incite people to violence against the Government established by law or with the intention of creating public disorder.
- The provisions of the Sections read as a whole, along with the explanations, make it reasonably clear that the sections aim at rendering penal only such activities as would be intended, or have a tendency, to create disorder or disturbance of public peace by resort to violence.
- It is only when the words, written or spoken, etc. which have the pernicious tendency or intention of creating public disorder or disturbance of law and order that the law steps in to prevent such activities in the interest of public order.
- The court proposed to limit its operation only to such activities as come within the ambit of the observations of the Federal Court, that is to say, activities involving incitement to violence or intention or tendency to create public disorder or cause disturbance of public peace.
What has been the impact of that verdict?
- The significance of the verdict lies in the Supreme Court’s subsequent reiteration of the Kedar Nath Singh principles.
- A fresh constitutional challenge by two journalists against the sedition law pending before the Supreme Court, and the ruling in Dua’s case, make a strong case against keeping the colonial law in the books.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Cooperative Banks
Mains level: Regulations of cooperative banks
Maharashtra government has approved a plan to set up a task force to prepare an action plan against a recent change in the law that has brought cooperative banks under the supervision of the Reserve Bank of India (RBI).
What are Cooperative Banks?
- Co-operative banks are financial entities established on a cooperative basis and belonging to their members.
- This means that the customers of a cooperative bank are also its owners.
- These banks provide a wide range of regular banking and financial services. However, there are some points where they differ from other banks.
- They came into being with the aim to promote saving and investment habits among people, especially in rural parts of the country.
Structure of co-operative banks in India
- Broadly, cooperative banks in India are divided into two categories – urban and rural.
- Rural cooperative credit institutions could either be short-term or long-term in nature.
- Further, short-term cooperative credit institutions are further sub-divided into State Co-operative Banks, District Central Co-operative Banks, Primary Agricultural Credit Societies.
- Meanwhile, the long-term institutions are either State Cooperative Agriculture and Rural Development Banks (SCARDBs) or Primary Cooperative Agriculture and Rural Development Banks (PCARDBs).
- On the other hand, Urban Co-operative Banks (UBBs) are either scheduled or non-scheduled.
Who oversees these banks?
- In India, cooperative banks are registered under the States Cooperative Societies Act.
- They also come under the regulatory ambit of the Reserve Bank of India (RBI) under two laws, namely, the Banking Regulations Act, 1949, and the Banking Laws (Co-operative Societies) Act, 1955.
- They were brought under the RBI’s watch in 1966, a move that brought the problem of dual regulation along with it.
Now answer this PYQ in the comment box:
Q.Consider the following statements:
- In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCB) delivers more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
- One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is / are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2
How has The Banking Regulation Act been amended?
- Cooperative banks have long been under dual regulation by the state Registrar of Societies and the RBI.
- As a result, these banks have escaped scrutiny despite failures and frauds.
- The changes to The Banking Regulation Act approved by Parliament in September 2020, brought cooperative banks under the direct supervision of the RBI.
Changes brought
- The amended law has given RBI the power to supersede the board of directors of cooperative banks after consultations with the concerned state government.
- Earlier, it could issue such directions only to multi-state cooperative banks.
- Also, urban cooperative banks will now be treated on a par with commercial banks.
- And a cooperative bank can, with prior approval of the RBI, issue equity shares, preference shares, or special shares to its members or to any other person residing within its area of operation, by way of public issue or private placements.
- It can also issue unsecured debentures or bonds with a maturity of not less than 10 years.
- This essentially means non-members can become shareholders of the bank, and this will allow the RBI to merge failing banks quickly.
What triggered the need for the changes in the law?
- India has some 1,540 urban cooperative banks, with a depositor base of 8.6 crore and deposits of at least Rs 5 lakh crore.
- Finance Minister told Lok Sabha last year that the financial status of at least 277 urban cooperative banks was weak, and around 105 cooperative banks were unable to meet the minimum regulatory capital requirement.
- According to RBI’s latest financial stability report, the gross non-performing asset ratio of urban cooperative banks deteriorated from 9.89 percent in March 2020 to 10.36 percent in September 2020.
- Not only do these banks have high levels of bad loans, they also have a small capital base — something that the changes in the law have tried to address by allowing these banks to issue shares with RBI’s approval.
- Political interference in staff appointments is also a problem with these banks, which has added to inefficiencies.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: MGNREGA
Mains level: MGNREGA
The Centre has asked the States to split wage payments under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme into separate categories for Scheduled Castes, Scheduled Tribes and others from this financial year.
What is MGNREGA?
- The MGNREGA stands for Mahatma Gandhi National Rural Employment Guarantee Act of 2005.
- This is a labour law and social security measure that aims to guarantee the ‘Right to Work’.
- The act was first proposed in 1991 by P.V. Narasimha Rao.
The objectives of the MGNREGA are:
- To enhance the livelihood security of the rural poor by generating wage employment opportunities.
- To create a rural asset base that would enhance productive ways of employment, augment and sustain a rural household income.
What is so unique about it?
- MGNREGA is unique in not only ensuring at least 100 days of employment to the willing unskilled workers, but also in ensuring an enforceable commitment on the implementing machinery i.e., the State Governments, and providing a bargaining power to the labourers.
- The failure of provision for employment within 15 days of the receipt of job application from a prospective household will result in the payment of unemployment allowance to the job seekers.
- Any Indian citizen above the age of 18 years who resides in rural India can apply for the NREGA scheme. The applicant should have volunteered to do unskilled work.
- Employment is to be provided within 5 km of an applicant’s residence, and minimum wages are to be paid.
- Thus, employment under MGNREGA is a legal entitlement.
Answer this PYQ in the comment box:
Q.Among the following who are eligible to benefit from the “Mahatma Gandhi national rural employment guarantee act”?
(a) Adult members of only the scheduled caste and scheduled tribe households.
(b) Adult members of below poverty line (BPL) households.
(c) Adult members of households of all backward communities.
(d) Adult members of any household.
What is the move?
- States were asked to verify if job cards for SC and ST beneficiaries were being properly allocated at the field level.
- They were told they would be given fund allocations according to this criterion, indicating that labour budgets would also be segregated on a caste basis.
- It was aimed at timely wage payments.
Reasons behind
- There is some inbuilt positive discrimination in the scheme, reflected in the fact that more than 50% of workers are women and almost 40% are SC/ST.
- However, it felt that the proposed reform would not help SC/ST workers, but would expose all workers to further uncertainties as the system struggles with changes.
Issues with the announcement
- Workers’ advocates feared this move would cause unnecessary delays and complications in the payment system, and worried that it could lead to a reduction in scheme funding.
- The rationale was very simple. It is not as if the payments made to SC and ST are not reported on the NREGA website, but overall, in terms of the budgetary outlay.
- When people take an assessment merely on the Budget head under which the programme is budgeted, then they miss out on this intricate nuance.
- So the Finance Ministry advised that both the Centre and States should make Budget provisions under SC and ST components as well.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: SCO
Mains level: India-SCO cooperation
The Union Cabinet has accorded an ex post facto approval for signing and ratifying an agreement on cooperation in the field of mass media between all member states of the Shanghai Cooperation Organization (SCO).
Highlights of the Agreement
- The agreement, which was signed in June 2019, would provide an opportunity for the member states to share best practices and new innovations in the field of mass media.
- It aims to promote equal and mutually beneficial cooperation among associations in the field of mass media.
- The main areas of cooperation in the agreement are the creation of favorable conditions for the wide and mutual distribution of information through mass media in order to further deepen the knowledge about the lives of the peoples of their states.
- It will assist in broadcasting television and radio programmer and those, distributed legally within the territory of the state of the other side.
What is SCO?
- After the collapse of the Soviet Union in 1991, the then security and economic architecture in the Eurasian region dissolved and new structures had to come up.
- The original Shanghai Five were China, Kazakhstan, Kyrgyzstan, Russia and Tajikistan.
- The SCO was formed in 2001, with Uzbekistan included. It expanded in 2017 to include India and Pakistan.
- Since its formation, the SCO has focused on regional non-traditional security, with counter-terrorism as a priority.
- The fight against the “three evils” of terrorism, separatism and extremism has become its mantra. Today, areas of cooperation include themes such as economics and culture.
Try this PYQ now:
Q. In the context of the affairs of which of the following is the phrase “Special Safeguard Mechanisms” mentioned in the news frequently?
(a) United Nations Environment Programme
(b) World Trade Organization
(c) ASEAN- India Free Trade Agreement
(d) G-20 Summits
India’s entry to the SCO
- India and Pakistan both were observer countries.
- While Central Asian countries and China were not in favor of expansion initially, the main supporter — of India’s entry in particular — was Russia.
- A widely held view is that Russia’s growing unease about an increasingly powerful China prompted it to push for its expansion.
- From 2009 onwards, Russia officially supported India’s ambition to join the SCO. China then asked for its all-weather friend Pakistan’s entry.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: EAGLE Act
Mains level: US Visa policies and its impact for Indians
Legislation to remove the per-country cap on permanent residency visas, or green cards, for the US has been introduced in the House of Representatives.
What is the EAGLE Act?
- Eagle stands for Equal Access to Green cards for Legal Employment (EAGLE) Act, 2021.
- The act seeks to phase out the seven percent per-country limit on employment-based immigrant visas and raises the per-country limit on family-sponsored visas from seven percent to 15 percent.
- It provides for a nine-year period for the elimination of this limit.
- The seven percent limit was introduced in the mid-20th century, which has led countries with relatively small populations to be allocated the same number of visas as a relatively large-population country.
Benefits of the act
- It will benefit the US economy by allowing American employers to focus on hiring immigrants based on their merit, not their birthplace.
- The bill will be advantageous for Indian job-seekers who currently rely on temporary visas or await green cards to work in the US.
How does it help Indians?
- 75 percent of the backlog for employment‐based visas was made up of Indians.
- Backlogged Indian workers face an impossible wait of nine decades if they all could remain in the line.
- More than 200,000 petitions filed for Indians could expire as a result of the workers dying of old age before they receive green cards.
- With the EAGLE Act, the per-country cap would be removed, which may expedite the petitions for those applying for employment-based green cards.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Pandav leni complex
Mains level: Ancient buddhist cave architecture
The Archaeological Survey of India (ASI) has found three more caves in the Trirashmi Buddhist cave complex, also known as Pandav Leni, near Nashik, Maharashtra.
Answer this PYQ first, in the comment box:
Q.There are only two known examples of cave paintings of the Gupta period in ancient India. One of these is paintings of Ajanta caves. Where is the other surviving example of Gupta paintings?
(a) Bagh caves
(b) Ellora caves
(c) Lomas Rishi cave
(d) Nasik caves
Pandav Leni Complex
- The Pandav Leni Complex or Nasik Caves are a group of 23 caves carved between the 1st century BCE and the 3rd century CE.
- Also called Trirashmi Buddhist caves, this complex was first documented in 1823 by Captain James Delamaine and is now an ASI- protected site.
- Though additional sculptures were added up to about the 6th century, it is a major landmark of changes in Buddhist devotional practices.
- Most of the caves are viharas except for Cave 18 which is a chaitya of the 1st century BCE.
- The style of some of the elaborate pillars or columns, for example in caves 3 and 10, is an important example of the development of the form.
- The “Pandavleni” name sometimes given to the Nasik Caves has nothing to do with the characters Pandavas, characters in the Mahabharata epic.
- Other caves in the area are Karla Caves, Bhaja Caves, Patan Cave, and Bedse Caves.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: World Employment and Social Outlook: Trends 2021
Mains level: Unemployment since the pandemic
The report titled World Employment and Social Outlook was recently released by the International Labour Organization (ILO).
About the report
- The report analyses the impact of the crisis on the labour market across the world.
- It offers projections for recovery and gives details of the unequal impact of the crisis on different groups of workers and enterprises and calls for a broad-based human-centred recovery.
Findings of the report
- There has been an unprecedented disruption to labour markets worldwide due to the COVID-19 pandemic, which has affected the lives of the younger generation and brought about disruption to their education.
- Also made it more difficult for them to enter the labour market and hold on to their jobs.
- The pandemic worsened long-standing inequalities with many women workers dropping out of the labour force.
- For informal and low-skilled workers, working from home was not an option.
- Many had to face huge health risks to keep their jobs, often with no access to social security benefits.
Major highlights of the report
- Global unemployment is expected to be at 205 million in 2022, surpassing the 2019 level of 187 million.
- The jobs shortfall induced by the novel coronavirus disease (COVID-19) pandemic was 75 million in 2021 and is expected to be 23 million in 2022.
- An estimated additional 108 million workers and their family members now live in poverty.
The long road to recovery
- The recovery would remain fragile in many countries due to the uneven rollout of vaccination campaigns and higher levels of public debt and deficits that would make it difficult to tackle the effects of the pandemic.
- There is an urgent need to build back better — create productive employment opportunities and foster long-term labour market prospects for the most vulnerable.
- There is a need to strengthen social protection schemes like the MGNREGS in India and make sure nobody is left behind.
- This would require strong institutions and social dialogue and strong international cooperation to fight global disparities.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: Model Tenancy Act
The Union Cabinet has approved the Model Tenancy Act (MTA) to be sent to the States and Union Territories to enact legislation or amend laws on rental properties.
Model Tenancy Act
- MTA is aimed at opening up of the vacant housing stock for rental housing purposes and helping bridge the trust deficit that exists between tenants and landlords by clearly delineating their obligations.
- The housing and urban affairs ministry had floated the draft model tenancy law in July 2019.
Major provisions of MTA
(1) Rent Court and Rent Tribunal:
- To ensure speedy redressal of disputes, the Act calls for establishing a separate Rent Court and Rent Tribunal in every state/UTs to hear appeals for matters connected to rental housing.
- Only the rent court and no civil court will have the jurisdiction to hear and decide the applications relating to disputes between landowner and tenant and matters connected with it.
- It calls for the disposal of complaints and appeals by the Rent Court and Rent Tribunals within 60 days.
(2) Tenancy Agreements:
- It also seeks to establish an independent authority in every state and Union Territory for the registration of tenancy agreements.
- Under the Act, unless otherwise agreed in the tenancy agreement, the landlord will be responsible for activities like structural repairs except those necessitated by damage caused by the tenant etc.
- On his part, a tenant will be responsible for drain cleaning, switches and socket repairs, kitchen fixtures repairs, replacement of glass panels in windows, doors and maintenance of gardens and open spaces, among others.
For residential and commercial properties
- The Act will apply to premises let out for residential, commercial or educational use, but not for industrial use. It also won’t cover hotels, lodging houses, inns, etc.
- This model law will be applied prospectively and will not affect existing tenancies.
- It seeks to cover both urban as well as rural areas.
- The Act says that a security deposit equal to a maximum of two month’s rent in the case of residential premises and a maximum of six month’s rent in the case of non-residential premises would have to be paid by the tenants.
How will states implement it?
- As per the MoU signed under PMAY-U, the states and union territories would legislate or amend the existing rental laws on the lines of the MTA.
Why was a need felt to bring this on?
(1) For a rental economy
- Without a well-rounded rental policy and the proper implementation of the rental contracts, there was no sound mechanism to resolve tenant-landlord conflicts.
- Property owners find it challenging to evict tenants if they misuse the property.
- To steer clear of such complications, such property owners often chose to keep these homes vacant instead of renting them out.
(2) Unattractive rental yield
- In India, the rental yield for residential property is quite low, even in bigger cities. It is in the range of 1.5% to 3% of the capital values.
- This has disincentivized people from investing in second or third homes which could be rented out.
- Often, they also prefer to leave their properties vacant in case they return to India.
- NRIs avoid leasing their residential properties for fear of squatters and dealing with the legalities of eviction.
How will MTA help?
(1) Unlocking homes
- It will unlock vacant houses for rental purposes
- It will enable the creation of adequate rental housing stock for all the income groups thereby addressing the issue of homelessness.
(2) Helping migrants
- Rental housing is a preferred option for students and migrants.
- It will balance the rights of both landlords and tenants.
(3) Effective negotiations
- There is no monetary ceiling under MTA, which enables parties to negotiate and execute the agreement on mutually agreed terms.
- It will give confidence to landlords to let out their vacant premises, the housing ministry said.
- The Act also tries to address how a renter can legitimately increase the rent.
(4) Control over encroachments
- It has proposed limiting the advance security deposits to two months’ rent and has also suggested heavy penalties for tenants who decide to overstay.
- Those who do may have to shell out double the rent for two months and even four months.
(5) Rights of tenants
- The landowner cannot cut power and water supplies in case of a dispute and would have to provide a 24-hour notice to tenants to carry out repair work.
- Should the landlords wish to increase the rent, they will need to provide a three-months notice to the tenants.
- These measures would go a long way in protecting the rights of a tenant as it regulates the rent hikes that tenants have had to face.
Challenges ahead
While the proposals of the Act have been widely welcomed, their implementation may not be very simple.
(1) Not Binding nature
- The Act is not binding on the states as land and urban development remain state subjects.
- Like in the case of RERA, the fear is that states may choose not to follow guidelines, diluting the essence of the Model Act.
(2) Issues over paltry rents
- Also, the Model Act is prospectively applicable and will not affect the existing tenancies.
- The repeal of rent control Acts can be governed by political exigencies.
- This may be a complicated process in cities like Mumbai, where tenants have occupied residential properties in prime areas for absurdly low rents.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Digital Services Taxes
Mains level: Read the attached story
The US government has announced the further suspension of punitive tariffs for six months on India, Austria, Italy, Spain, Turkey, and the UK while it continues to resolve the DST investigation amid the ongoing multilateral negotiations at the OECD and the G20.
Do you remember?
GAFA tax—named after Google, Apple, Facebook, Amazon—is a proposed digital tax to be levied on large technology and internet companies.
What are the Digital Services Taxes in India?
- The NDA government had moved an amendment in the Finance Bill 2020-21 imposing a 2 percent digital service tax on trade and services by non-resident e-commerce operators with a turnover of over Rs 2 crore.
- The new levy has expanded the ambit of the equalization levy for non-resident e-commerce operators involved in the supply of services, including the online sale of goods and provision of services.
- E-commerce operators are obligated to pay the tax at the end of each quarter.
- Estimates by the USTR indicate that the value of the DST payable by US-based company groups to India will be up to approximately $55 million per year.
Also read:
What are Digital Services Taxes?
What is the story?
- The US is focused on finding a multilateral solution to a range of key issues related to international taxation, including our concerns with digital services taxes.
- It is trying to reaching a consensus on international tax issues through the OECD and G20 processes.
Investigation regarding DST
- The US has conducted a year-long investigation into digital services taxes imposed by countries, stating that they are against tech companies like Apple, Amazon, Google, and Facebook.
- It had determined that the digital services taxes adopted by Austria, India, Italy, Spain, Turkey, and the UK has discriminated against US digital companies and were inconsistent with principles of international taxation, and burdened US companies.
What’s the case against India?
- In the case of India, the USTR’s proposed course of action includes additional tariffs of up to 25 percent ad valorem on an aggregate level of trade.
- Around 26 categories of goods are in the preliminary list of products that would be subject to the additional tariffs.
- This includes shrimps, basmati rice, cigarette paper, cultured pearls, semi-precious stones, silver powder and silver articles of jewelry, gold mixed link necklaces, and neck chains, and certain furniture of bentwood.
Why does India need DST?
- The agenda to reform international tax law so that digital companies are taxed where economic activities are carried is still a work in progress.
- Due to this, countries are worried that they might cede their right to tax incomes. Therefore, many countries have either proposed or implemented a digital services tax.
- The proliferation of digital service taxes (DSTs) is a symptom of the changing international economic order.
- Countries such as India which provides large markets for digital corporations seek a greater right to tax incomes.
- The taxation of the digitalized economy turned out to be a relatively contentious issue because there is a huge asymmetry in digital service providers and consumers.
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