Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Changing India-Iran relations.
Context
The CAA and violence in Delhi have started to take its toll on India’s secular foreign policy.
The US and other’s reaction to the situation in India
- Trump visit to India: President Trump referred to India as a democracy which was peaceful and tolerant. He lauded freedom, rule of law, liberty and protection of human dignity, adding graphically that where India had the holy Ganges, it also had the Golden Temple and Jama Masjid.
- Assurance to the critics at home: He thereby cleverly reassured critics at home, especially in the US Congress, that he was not ignoring the values the two great democracies shared.
- However, as the situation in Delhi spun into violence the next day, in an untutored media interaction at the US ambassador’s residence, he ducked questions about the CAA or Delhi riots, nonchalantly remarking it was “up to India” to deal with it.
- This may have brought comfort to the Indian government but the world at large differed.
- Response from the other countries: Delhi had already exchanged angry words with Malaysia, Turkey and even Indonesia over their varied critique of India’s handling of its Muslim minority when Iran joined the issue.
Iran’s response to violence in India
- Condemnation by foreign ministers: Iranian Foreign Minister Javad Zarif condemned the “wave of organised violence against Indian Muslims”, adding that “Iran has been a friend of India”.
- India’s foreign ministry summoned the Iranian ambassador to protest the inappropriateness of the minister’s remark.
- The reaction by the Iranian Supreme Leader: Soon after, Supreme Leader Ali Khamenei found the time, in the middle of the COVID-19 outbreak, to excoriate the Indian government.
- Adding insult to injury, he appended #IndianMuslimsInDanger.
- No reaction on China problems: A facile response, can be that Iran is being hypocritical as it has not expressed remorse over the Chinese repression of Uyghurs.
- The difference in India’s importance to China: China is a veto-wielding member of the UN Security Council, which also sustains the Iranian economy despite US sanctions. On the other hand, India has a Shia population second only to that of Iran.
Relations with Iran
- Two consulates in India: There are two Iranian consulates in India in Hyderabad and Mumbai. Iran seeks the third one in Lucknow.
- Qom also hosts many Shia students, particularly from the Kargil region.
- Historic links between the two countries: After Humanyun’s exile in Iran (1530-40) before recovering the Indian throne, the Persian language and culture fired the cultural renaissance at the Mughal court.
- Religio-cultural heritage importance: India is important for Iran for its religio-cultural heritage, unlike China, which is needed for transactional and strategic reasons.
- Two interrelated questions flow from this reasoning:
- 1. What is Iran’s importance for India and the trajectory of India-Iran relations over the last two decades?
- 2. And why is Iran adopting this sharp tone over what the Indian government argues is an internal matter?
- Convergence in the relations: The closest India-Iran strategic convergence began in the 1990s, particularly after Kabul fell to the Taliban in 1996. These ties blossomed under reformist Iranian President Mohammad Khatami and Indian Prime Minister Atal Bihari Vajpayee.
- Tehran Declaration: In 2001, the two signed the Teheran Declaration. Khatami in his opening remarks said that Iran always admired India’s secular credentials and Vajpayee had maintained that tradition.
- In 2003, Khatami was the chief guest at India’s Republic Day and a New Delhi Declaration was issued.
- Deterioration in relations and impact of India-US relation: The relationship began to slip as Iran’s clandestine nuclear programme and assistance from Pakistan’s rogue scientist A Q Khan was uncovered in mid-2003.
- Impact of India-US closeness: Concomitantly, India was drawing closer to the US and negotiating a nuclear cooperation agreement.
- The US used the nuclear issue to cause a cleavage as Indian and Iranian interests began seriously diverging.
- Taliban factor: In any case, the Taliban had been ejected from Afghanistan and US troops literally surrounded Iran, having in 2003 overthrown Saddam Hussein. Geo-strategy trumped diplomacy.
The US-Iran relation cycle
- The nuclear deal with Iran: Iran-US relations also went through a cycle, with President Barack Obama recalibrating US policy towards the Gulf and West Asia.
- Countering ISIS: Calculating that without Iran, ISIS could not be countered, the US in 2015 endorsed the nuclear deal that P-5 and Germany negotiated to end the nuclear stand-off.
- Missing warmth of the 1990s: Although India-Iran relations after that returned to near normal as most US sanctions were lifted, the warmth of the 1990s was missing.
- Iran was now beginning to extend its influence and role across Iraq and West Asia.
- Maximum Pressure strategy of the US: President Donald Trump in 2016 reversed US policy and since then “maximum pressure” has been applied on Iran via tightened sanctions.
- India’s engagement with Saudi Arabia and UAE: PM Modi also moved more forthrightly to engage Saudi Arabia and the UAE.
- The fallout of the US strategy reversal: A fallout of the US policy reversal has been an exacerbation of not only the Shia-Sunni split but a Sunni-Sunni split as Qatar and Turkey are with Iran.
Changing polity and increasing influence in the neighbourhood
- Conservatives elected to power: In Iran’s parliamentary election on February 28, extremely conservative members have been elected, the moderates having been vetoed by the Guardians Council earlier.
- Turnout was a low 43 per cent, due partly to fear of the coronavirus.
- Increasing influence in the neighbourhood: Iran is even more isolated, though determined to resist US demands, due to communications being curtailed due to the virus.
- Relations with the Taliban: It has good working relations with the Taliban and converging interests to see that US troops exit the region.
- The friendly government in Baghdad: Iran is battling to ensure a friendly government in Baghdad, despite the killing of Major General Qasem Soleimani, by keeping militias aligned to it in play.
Conclusion
- Perception of India: Khamenei’s tweet reflects the perception that India is in the US-Saudi-Emirati corner and of little use as long as Trump is president.
- Growing closeness Abu Dhabi, Riyadh and Ahmedabad would have led Iran to this conclusion.
- Leveraging India’s dependence: In the Islamic world, Iran by publicly defending Indian Muslims embarrasses the silent Saudis.
- It also calculates that India needs access to Afghanistan through Chabahar to assist the Ghani government or influence developments there.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- Is expansionary monetary policy enough to deal with the impact of COVID-19?
Context
Central banks the world over are devising the strategies to deal with the impact of COVID-19 on their economies.
How the Central banks are responding?
- US Fed’s response: The huge 50 basis points cut in rates by the U.S. Federal Reserve to lift economic sentiment hit by COVID-19 has disrupted central banking worldwide.
- Pressure on other Central banks to follow suits: Even as analysts debate whether a monetary policy response is a right strategy, central banks across the world are feeling the pressure to follow suit to the largest rate cut by the Fed since 2008.
- How banks are responding? Central banks of Australia and Malaysia have cut rates already while others such as the Bank of Japan, Bank of England and the European Central Bank are contemplating joining the caravan.
How the RBI is responding?
- First line of economic defence: With monetary policy turning out to be thede facto first line of economic defence against the ill-effects of the virus, the focus in India has turned to the Reserve Bank of India’s response.
- Hope of rate cut: Yields on 10-year government securities fell by as much as 0.12% in the hope of a rate cut by the RBI and they stayed soft.
- But what are the central bank’s options?
- No unilateral rate adjustment: Unlike other countries, the legal framework in India after the setting up of the Monetary Policy Committee (MPC) is such that the RBI cannot unilaterally adjust rates.
- The MPC will have to meet and deliberate on the situation before the call to cut rates is taken and such a call will have to be based on an assessment of inflation in the economy.
Is a rate cut the right response?
- Impact of the virus on the supply side: The first-order impact on the global economy of the spreading virus is a disruption to trade and to global supply chains.
- With China being the factory of the world, the clampdown in that country has already disrupted supplies of products ranging from cell phone components to bulk drugs and auto components.
- Factory lines across the world could freeze as supply chains get disrupted.
- Limits of Monetary policy to deal with the supply-side problem: Monetary policy is excellent to address demand shocks but is a blunt tool when it comes to addressing supply-side issues.
- Where to spend? People may be encouraged to spend more due to a rate cut but what will they spend on if products go scarce, travel convulses and public spaces such as movie theatres and malls become no-go areas?
- The rate cut will boost the sentiments only: A rate cut can, at best, help to boost sentiment but that again will be transient as the market’s reaction after the Fed rate cut proves.
- Expansionary monetary policy cannot improve the situation: The Swedish central bank’s deputy governor Anna Breman has rightly questioned the logic of a rate cut as a response to the coronavirus impact pointing out that an expansionary monetary policy cannot improve the situation.
- How the RBI might respond? The sentiment being what it is, the RBI may find itself under increasing pressure to act. Given the MPC constraint, it may well choose to do what it did in the February monetary policy– unleash other weapons in its armoury to give the same effect as a rate cut.
- Thus, we may well see the central bank announcing another tranche of long-term repo operation, akin to the ₹1 lakh crore that it announced in February.
- That will mean that banks will gain access to three-year funds at the repo rate of 5.15%, much lower than the market rate.
- And then, there’s Operation Twist which the RBI employed to good effect in December, softening rates at the long end of the yield curve.
Would any of these measures yield any response?
- Doubtful results: It’s doubtful if any of these measures can address the hit to economic growth. The virus has undoubtedly surfaced at a very wrong time for the Indian economy which is showing hesitant signs of a return to growth.
- Which sectors will be impacted the most? The impact will be felt on more than one front. Industries such as pharmaceuticals, electronics and automobiles could be headed for trouble given their high dependence on Chinese inputs.
- Government’s response: While the government is said to be formulating a response, including the possibility of airlifting supplies, the practicality of this solution needs to be watched as also its impact on costs for the industries concerned.
Impact on exports and offsetting factor of oil import
- The biggest problem: The bigger problem could be from a fall in exports, which accounts for 20% of the GDP.
- Which exporters would feel the heat? If the developed world tips into recession due to the virus, exporters of products ranging from petroleum and textiles to leather and gems and jewellery will feel the heat.
- Oil offset due to fall in oil prices: The offsetting factor, of course, will be a lower oil import bill due to the sharp fall in oil prices. This may also have a benevolent effect on inflation.
- But there will be other headaches for the central bank if the developed world embarks on monetary expansion. The RBI will be faced with the challenge of staunching inflows of hot money coming in search of the higher returns available in India.
Conclusion
- Hot money concern for RBI: There will be other headaches for the central bank if the developed world embarks on monetary expansion. The RBI will be faced with the challenge of staunching inflows of hot money coming in search of the higher returns available in India.
- Opportunity in the crisis: As with every crisis, there’s also an opportunity here. Economic growth is bound to suffer in the short-term but there could be long-term spin-offs if domestic industry and government get their acts right.
- Supply chains can be localised through fresh investments and India can bid to be an alternative to China in the global value chain.
- India can be an option to China for global supply chain: The COVID-19 crisis has only underlined in red the lesson that global corporations learnt when trade war broke out between the U.S. and China- the global supply chain needs alternative options to China. India is eminently qualified to assume that role. If only our policymakers and industrialists rise up to the challenge.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- India-US relations.
Context
President Trump’s visit had the right optics. Attention must now turn to India-US priority areas.
What were the mutual gains and highlights of the visit?
- Security: Homeland Security is an American expression. For us to own it shows our concerns on cross-border sponsored terrorism.
- Nuclear technology: Our nuclear VVER power plant technologies are state of the art and of Russian and French design.
- Fast breeder: Good, but one more is better. We are well on the way to the fast breeder on the thorium route and these nuclear turbines are an essential step.
- Unlimited thorium: We don’t have much uranium but unlimited thorium, so in the long run, apart from solar, this is the energy future.
- Insurance obstacle resolved: Obviously, the insurance obstacle, as to who will bear the cost of insurance against disaster damage, which the Americans were raising earlier, has been resolved.
- We have to build nuclear power to provide the initial feedstock for the thorium-based reactors.
- No progress on trade pact: There are obviously differences between the two nations on the trade pact.
- There is “progress”, but otherwise, we don’t know the way forward. Since the event was Ahmedabad-based, Amul is invading America and dairying is real politics.
- US concerns over Kashmir issue: The US concern on Kashmir and minority rights is real.
- If the largest foreign office establishment in the world is raising issues through their chief, let’s not bury our head in the sand.
- Our defence minister expressing sadness at former chief ministers of Jammu and Kashmir being in detention was a gesture to the US President’s stand on pursuing solutions.
- The bipartisan foreign policy of India shifting: The Americans generally rally behind the President on foreign policy.
- We are more advanced now and have kicked a bipartisan approach to foreign affairs.
- Seven decades of a bipartisan policy are thrown away without a word in explanation.
Challenges to the rights in India
- Every right is tampered with. Your religion, your identity in a country that never questioned it, you name it, it’s in question.
- Multiple identity cards not accepted: The Aadhaar card, passport, ration card, election card are not enough. One office doesn’t accept another’s card, even if they carry the same information.
- A study on a ration card and election cards: A study funded by the Canadian IDRC showed the poor only keep under lock and key the ration and election cards. One saves them from starvation, the other gives them dignity. At least once every five years, the mightiest knock at their door. We must not destroy, we must build.
Conclusion
There are obviously differences between the two nations on the trade pact. But apart from trade, there are many areas the cooperation on which can benefit both the countries.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3- Dealing with the trinity of social disharmony, economic slowdown and and global health epidemic.
Context
India faces imminent danger from the trinity of social disharmony, economic slowdown and a global health epidemic.
Social disharmony
- Violence in Capital: Delhi has been subjected to extreme violence over the past few weeks. We have lost nearly 50 of our fellow Indians for no reason. Several hundred people have suffered injuries.
- Communal tensions have been stoked and flames of religious intolerance fanned by unruly sections of our society, including the political class.
- University campuses, public places and private homes are bearing the brunt of communal outbursts of violence.
- Institutions of law and order have abandoned their dharma to protect citizens. Institutions of justice and the fourth pillar of democracy, the media, have also failed us.
Impact of social disharmony on the economy
- Exacerbating the economy: At a time when our economy is floundering, the impact of such social unrest will only exacerbate the economic slowdown.
- Lack of investment by the private sector: It is now well accepted that the scourge of India’s economy currently is the lack of new investment by the private sector.
- Investors, industrialists and entrepreneurs are unwilling to undertake new projects and have lost their risk appetite.
- Increase in fears and risk aversion: Social disruptions and communal tensions only compound investors’ fears and risk aversion.
- Social harmony, the bedrock of economic development, is now under peril.
- When policy tweaks stop to matter: No amount of tweaking of tax rates, showering of corporate incentives or goading will propel Indian or foreign businesses to invest, when the risk of eruption of sudden violence in one’s neighbourhood looms large.
- How the vicious cycle works: Lack of investment means a lack of jobs and incomes, which, in turn, means a lack of consumption and demand in the economy.
- A lack of demand will only further suppress private investments. This is the vicious cycle that our economy is stuck in.
Impact of COVID-19 on the economy
- Global reactions: Nations across the world have sprung into action to contain the impact of this epidemic. China is walling off major cities and public places. Italy is shutting down schools. America has embarked aggressively both to quarantine people as well as hasten research efforts to find a cure.
- Many other nations have announced various measures to address this issue.
- What India can learn? India too must act swiftly and announce a mission-critical team that will be tasked with addressing the issue. There could be some best practices we can adopt from other nations.
Bringing in reforms to address the problems
- The government must quickly embark on a three-point plan.
- First, it should focus all energies and efforts on containing the COVID-19 threat and prepare adequately.
- Two, it should withdraw or amend the Citizenship Act, end the toxic social climate and foster national unity.
- Three, it should put together a detailed and meticulous fiscal stimulus plan to boost consumption demand and revive the economy.
Turning a moment of deep crisis into a moment of great opportunity
- The past instance of turning crisis into an opportunity: In 1991, India and the world faced a similar grave economic crisis, with a balance of payments crisis in India and a global recession caused by rising oil prices due to the Gulf War.
- But India was able to successfully turn this into an opportunity to reinvigorate the economy through drastic reforms.
- Turning the present crisis into an opportunity: Similarly, the virus contagion and the slowing down of China can potentially open up an opportunity for India to unleash second-generation reforms to become a larger player in the global economy and vastly improve prosperity levels for hundreds of millions of Indians.
- To achieve that, we must first rise above divisive ideology, petty politics and respect institutional salience.
Conclusion
The India that we know and cherish is slipping away fast. Wilfully stoked communal tensions, gross economic mismanagement and an external health shock are threatening to derail India’s progress and standing. It is time to confront the harsh reality of the grave risks we face as a nation and address them squarely and sufficiently.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 3-Ensuring fair competition and dealing with the problem of predatory pricing.
Context
Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise.
Duopolies and scrutiny by the CCI
- Duopolies in the most segment: The online marketplace or the platform/intermediation service market is now largely characterised by duopolies in most segments:
- Amazon and Flipkart in e-commerce, Uber and Ola in transport, Zomato and Swiggy in food service, MakeMyTrip and Yatra in travel bookings.
- Some niche players do exist in these segments, but by and large, the market has been carved up by large players.
- Why CCI is scrutinising these companies? Several of these companies have come under the scrutiny of the Competition Commission of India (CCI).
- What are the issues involved? The issues involved here have far-reaching ramifications for both online and offline market places. Some of the more contentious issues are:
- Do such market structures restrict online competition?
- Are the players engaging in predatory pricing?
- If so, is it driving out both online and offline competition and does this adversely impact consumer welfare?
- Is there a need for policy intervention, and, if so, what should be the underlying framework?
Lower barrier to entry not translating into greater competition
- Market not working as per theory: In theory, the online market structure should facilitate greater competition given the lower barriers to entry. But this may not be the case.
- Take-over: Most other firms in the segments mentioned above have either been taken over or have folded up.
- What is the reason for the emergence of such marker structures
- Positive feedback loop: One explanation for the emergence of these market structures is that as companies grow, with more users coming on board these platforms, they benefit from what CCI calls positive feedback loop.
- This leads to market concentration.
- Difficulties for new players: Given the network effects, which are common in digital spaces, it becomes difficult for new players to enter these spaces, and gain market share as there isn’t much space for many such networks.
- Capital intensive market: Another possible explanation is that, contrary to perception, the online space is highly capital intensive.
- Deep pockets are required to fund the discounts to get customers on board initially.
- Such market structures are more likely in capital deficit countries like India.
- Incumbents restricting new entrant: Incumbents, as in other sectors, may also engage in various strategies to restrict entry and thus competition.
- Even small actions by these platforms coupled with the network effects can adversely impact competition.
Predatory pricing-issues involved in it
- Allegations of predatory pricing driving out the competition: Many allege that these two-sided online platforms engage in predatory pricing or below-cost pricing either by funding it themselves (deep pockets) or by squeezing producers.
- This drives out the competition — both online as well as offline.
- Predatory pricing is anti-competition, to begin with.
- How it is harmful to the customers? While consumers do benefit in the short run, once the competition is driven out, the platform starts raising prices to recoup previous losses.
- But is it that straightforward?
- What are the issues involved in predatory pricing?
- First- Assessing whether a platform is engaged in predatory pricing.
- In India, it is defined as price falling below average variable cost — may not be a straightforward exercise.
- Why it is not a straight forward exercise? The dynamics of online pricing (prices change over time), their unique cost structures — in such two-sided platforms, prices/costs on both sides should be seen in conjunction — as well as the impact of economies of scale and organisational efficiency in lowering costs, all need to be factored in.
- Discount for clearing inventories: Besides, one would also have to take into account that even offline firms engage in deep discounting to clear inventories.
- As do both online and offline firms to acquire customers in the early stages of their business.
- Second-The impact of such pricing strategies on competition and on consumer welfare must be carefully assessed.
- Driving out competitors is not equal to driving out the competition: It is quite likely that once the competition is eliminated and the platform starts to raise prices, new players will enter the market, attracted by higher prices.
- Driving out competitors may not be the same as driving out the competition — though the extent to which new firms are able to enter the market will depend on the degree to which barriers to entry exist.
- Concerns of recovering the losses: Platforms will be mindful that losses will be hard to recover, and may not engage in below-cost pricing to drive out competitors for extended periods.
- Consumers are unlikely to lose out as prices are likely to remain low.
- Third- Possibility of collusion
- There is also an argument for closer examination of such market structures because of the possibility of collusion.
- Customers moving towards cheaper options: In most such markets, as the consumer has little to differentiate between the two platforms, it is the price that sets them apart.
- Consumers tend to gravitate towards the cheaper option. This ensures continuous competition between the major players to offer low prices.
- Possibility of customer left with no option: It is possible that at some point, the players will find it in their interest to venture into some sort of agreement that allows both of them to survive, rather than be engaged in a race to the bottom — as has seemingly happened in the telecom sector.
- Fourth- Linking predatory pricing with abuse of dominant market position must be reexamined.
- The dominant position is not always linked with predatory pricing: As the experience of the telecom sector shows, a dominant position may not be a prerequisite for predatory pricing.
- Accepting this argument would imply that if regulatory intervention is required to check predatory pricing, it could kick in before market power or dominance is established.
- Taking into account deep pockets: Alternatively, the definition of market dominance could be expanded to take into account deep pockets.
Conclusion
- Set of guidelines instead of the fixed framework: Any intervention to “correct” pricing essentially involves placing a higher weightage on the assumed losses of competitors/producers than on the consumer’s apparent gains. This is not a straightforward exercise. Having a fixed predetermined framework is unlikely to be helpful. Instead, it would be more useful to have a set of guiding principles based on which regulatory intervention, if required, can be undertaken.
- Safeguarding competition not competitors: Competition policy should be driven by safeguarding competition, not competitors. It should seek to bring about greater transparency in pricing and reduce information asymmetry.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not Much
Mains level: Ethnic turmoil in North East
Last week, ethnic violence left three dead in Meghalaya. The violence underlined the ethnic complexities of Meghalaya, with tensions coming back to the fore following the passage of the Citizenship (Amendment) Act.
Multi-ethnic Meghalaya
- Meghalaya became a state in 1972 when it was carved out of Assam. Before that, Shillong, now Meghalaya’s capital, used to be the capital of Assam.
- Sharing a 443-km border with Bangladesh, Meghalaya has seen decades of migration from areas that are now in Bangladesh, as well as from various Indian states via Assam.
- Besides the indigenous groups, Meghalaya’s residents include Bengalis, Nepalis, Marwaris, Biharis and members of various other communities.
- Meghalaya is a tribal majority state, and the indigenous Khasis, Jaintias and Garos are entitled to 80% reservation in government jobs.
- Various groups have continuously expressed concerns that illegal migration from Bangladesh and the growth of “outsiders” from other states would overwhelm the indigenous communities.
Meghalaya violence: The CAA context
- The CAA relaxes the norms for Hindus from Bangladesh (among six religious groups from three countries) for eligibility to apply for Indian citizenship.
- Long before that, the legislation was already facing protests in the Northeast, including Meghalaya. Eventually, the Centre decided the CAA will not apply in Sixth Schedule areas.
- The Sixth Schedule of the Constitution has special provisions for administration of certain areas in the Northeast, including almost the whole of Meghalaya.
- Despite the large exemption, the concerns have persisted in Meghalaya, and demands for an Inner Line Permit (ILP) regime have gathered fresh momentum.
- If the ILP system is introduced, every Indian citizen from any other state would require a time-bound permit to visit Meghalaya.
Signals simmering tensions
- The last four decades have seen numerous incidents of violence in Meghalaya targeted at non-tribals, including from Bengal and Nepal.
- The latest bout follows a sustained campaign over the implementation of the Inner Line Permit and unrest in the Northeast over the CAA that led to six deaths in Assam two months ago.
- The violence last week has an immediate context in the anti-CAA campaign and ILP demand.
Shillong, then and now
- Shillong has seen violence against “outsiders” several times in the last four decades.
- The targets were Bengalis in 1979, Nepalis in 1987, and Biharis in 1992.
- In 2018, Shillong saw clashes between Khasis and Punjab-origin Dalit Sikhs whose ancestors had settled there over 100 years ago.
- All that began collapsing after Independence, Constitutional institutions set up to safeguard the interest of the tribes came to be popularly perceived as opportunities to convert these tribal areas into exclusive zones of tribal hegemony.
- The issue of ‘foreigners’ illegally residing in the state of Meghalaya was one of the most important issues which dominated state politics in the 1970s and 1980s.
- In 1979, the state was plunged into a crisis for the first time since it was created.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Read the attached story
Mains level: Dignity of the Parliament
Seven MPs of a political party were suspended for unruly behaviour in the Lok Sabha. The motion was passed by a voice vote.
What is the reason for suspending an MP?
- The general principle is that it is the role and duty of the Speaker of Lok Sabha to maintain order so that the House can function smoothly.
- This is a daunting task even at the best of times.
- In order to ensure that proceedings are conducted in the proper manner, the Speaker is empowered to force a Member to withdraw from the House (for the remaining part of the day), or to place him/her under suspension.
What are the rules under which the Speaker acts?
Rule Number 373 of the Rules of Procedure and Conduct of Business says:
- The Speaker, if is of the opinion that the conduct of any Member is grossly disorderly, may direct such Member to withdraw immediately from the House, and any Member so ordered to withdraw shall do so forthwith and shall remain absent during the remainder of the day’s sitting.
To deal with more recalcitrant Members, the Speaker may take recourse to Rules 374 and 374A. Rule 374 says:
- The Speaker may, it deems it necessary, name a Member who disregards the authority of the Chair or abuses the rules of the House by persistently and wilfully obstructing the business thereof.
- If a Member is so named by the Speaker, the Speaker shall, on a motion being made forthwith put the question that the Member (naming such Member) be suspended from the service of the House for a period not exceeding the remainder of the session: Provided that the House may, at any time, on a motion being made, resolve that such suspension be terminated.
- A member suspended under this rule shall forthwith withdraw from the precincts of the House.
What is the procedure for revocation of a Member’s suspension?
- While the Speaker is empowered to place a Member under suspension, the authority for revocation of this order is not vested in her.
- It is for the House, if it so desires, to resolve on a motion to revoke the suspension.
What happens in Rajya Sabha?
- Like the Speaker in Lok Sabha, the Chairman of the Rajya Sabha is empowered under Rule Number 255 of its Rule Book to “direct any Member whose conduct is in his opinion grossly disorderly to withdraw immediately” from the House.
- Any Member so ordered to withdraw shall do so forthwith and shall absent himself during the remainder of the day’s meeting.
- The Chairman may name a Member who disregards the authority of the Chair or abuses the rules of the Council by persistently and wilfully obstructing business.
- In such a situation, the House may adopt a motion suspending the Member from the service of the House for a period not exceeding the remainder of the session.
- The House may, however, by another motion, terminate the suspension.
- Unlike the Speaker, however, the Rajya Sabha Chairman does not have the power to suspend a Member.
Way Forward: Striking a balance
- There can be no question that the enforcement of the supreme authority of the Speaker is essential for smooth conduct of proceedings. A balance has to be struck.
- However, it must be remembered that her job is to run the House, not to lord over it.
- The solution to unruly behaviour has to be long-term and consistent with democratic values.
- A step in that same direction could be to discontinue the practice of herding people out of the visitors’ gallery when the House witnesses chaos.
- So, the ruling party of the day invariably insists on the maintenance of discipline, just as the Opposition insists on its right to protest. And their positions change when their roles flip.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Freedom in the World Report
Mains level: Read the attached story
India has become one of the world’s least free democracies, according to a global survey.
Freedom in the World Report
- It is a yearly survey and report by the U.S. based non-governmental organization Freedom House.
- It measures the degree of civil liberties and political rights in every nation and significant related and disputed territories around the world.
- The report derives its methodology from the Universal Declaration of Human Rights, adopted by the UN General Assembly in 1948.
- It covers 195 countries, awarding scores based on political rights indicators such as the electoral process, political pluralism and participation and government functioning, as well as civil liberties indicators related to freedom of expression and belief associational and organisational rights, the rule of law and personal autonomy and individual rights.
Highlights of the report
Deteriorating freedom in India
- The report ranks India at the 83rd position, along with Timor-Leste and Senegal.
- This is near the bottom of the pile among the countries categorised as “Free”.
- India’s score fell by four points to 71, the worst decline among the world’s 25 largest democracies this year.
- India scored 34 out of 40 points in the political rights category, but only 37 out of 60 in the civil liberties category, for a total score of 71, a drop from last year’s score of 75.
- The report treats “Indian Kashmir” as a separate territory, which saw its total score drop precipitously from 49 to 28 this year, moving it from a status of “Partly Free” to “Not Free”.
Reason for the downfall
- The annulment of autonomy and the subsequent shutdown of Kashmir, the NRC and the CAA, as well as the crackdown on mass protests, have been listed as the main signs of declining freedom in the report.
- These three actions have shaken the rule of law in India and threatened the secular and inclusive nature of its political system said the report.
- The report slammed the internet blackout in Kashmir terming it the longest shutdown ever imposed by democracy.
- It said freedom of expression was under threat in India, with journalists, academics and others facing harassment and intimidation when addressing politically sensitive topics.
- It warned that the Indian government’s alarming departures from democratic norms under present govt. could blur the values-based distinction between Beijing and New Delhi.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Gairsain
Mains level: Two/Three capitals concept
Uttarakhand govt names Gairsain as the new summer capital of the state.
Gairsain
- Gairsain is situated at the eastern edge of the vast Dudhatoli mountain range, located almost at the centre of the state, at a distance of approximately 250 kilometres from Dehradun.
- It is easily accessible from both the Garhwal and the Kumaon divisions, and in a way, acts as the bridge between the two regions.
- Uttarakhand was carved out as a separate state from Uttar Pradesh in 1998.
- Gairsain was best suited to be the capital of the mountainous state as it was a hilly region falling on the border of Kumaon and Garhwal regions.
- But it was Dehradun, located in the plains that served as the temporary capital.
- With the fresh announcement, there is no clarity on either the city’s current status or a new winter capital.
- The state Assembly is located in Dehradun, but sessions are held in Gairsain as well.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Highlights of the report
Mains level: State of higher education in India
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Indian higher-education institutes have improved their performance on the global stage, with a greater number getting ranked in the top-100 programs, according to the latest edition of the Quacquarelli Symonds (QS) World University Rankings by Subject 2020.
Major findings of the report
- IIT Bombay (44), IIT Delhi (47), IIT Kharagpur (86), IIT Madras (88) and IIT Kanpur (96) found place in top 100 of this category.
- In the Natural Sciences category, three Indian institutions made it to the top 200: IIT-Bombay at 108th rank closely followed by the IISc, Bangalore at the 111th position, while IIT-Madras scraped in at the 195th rank.
- Jawaharlal Nehru University remained the country’s top institution in the Arts and Humanities category, with a global ranking of 162, followed at a distance by Delhi University at 231.
- Delhi University topped the Social Sciences and Management category, with a global ranking of 160, followed by IIT-Delhi at 183.
- There are no Indian institutions in the world’s top 200 when it comes to Life Sciences and Medicine.
- The top institution in the country is the All India Institute of Medical Sciences, which had a global ranking of 231.
- Other top subjects included physics & astronomy with 18 Indian institutes, biological sciences (16), electrical engineering (15), chemical engineering (14) and mechanical engineering (14).
- MIT, Stanford University and the University of Cambridge has secured top three positions in the Engineering and Technology category.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Polymer Electrolyte Membrane Fuel Cells (PEMFC)
Mains level: Read the attached story
Scientists at International Advanced Research for Powder Metallurgy & New Materials (ARCI), Hyderabad have developed Polymer Electrolyte Membrane fuel cells (PEMFC).
Polymer Electrolyte Membrane Fuel Cells
- Proton-exchange membrane fuel cells, also known as polymer electrolyte membrane (PEM) fuel cells (PEMFC) are a type of fuel cell being developed mainly for transport applications, as well as for stationary fuel-cell applications and portable fuel-cell applications.
- Their distinguishing features include lower temperature/pressure ranges (50 to 100 °C) and a special proton-conducting polymer electrolyte membrane.
- PEMFCs generate electricity and operate on the opposite principle to PEM electrolysis, which consumes electricity.
- They are a leading candidate to replace the aging alkaline fuel-cell technology, which was used in the Space Shuttle.
Working
- The PEMFC uses a water-based, acidic polymer membrane as its electrolyte, with platinum-based electrodes.
- The protons pass through the membrane to the cathode side of the cell while the electrons travel in an external circuit, generating the electrical output of the cell.
Applications in disaster management
- Emergency Operation Centres (EOC) backed with 10 kW systems is being planned as a natural disaster management measure.
- Tamil Nadu is generally affected by five to six cyclones every year, of which two to three are severe and is followed by frequent power cuts.
- ARCI is now planning to set up a PEMFC system for Tamil Nadu to operate the systems like early warning systems, VHF set, IP phone, BSNL Ethernet and office equipment like scanner, computers, printers, phone, FAX and normal requirements like lighting and fan.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Law for Rain Water Harvesting
Mains level: Rooftop water conservation strategy
The Ministry of Housing & Urban Affairs has issued the Model Building Bye Laws, 2016 for guidance of the States/UTs and has a chapter on ‘Rainwater Harvesting’.
Why such move?
- These laws aim to regulate the over-exploitation and consequent depletion of ground water.
- It would enable States/UTs to enact suitable ground water legislation for regulation of its development, which includes provision of rain water harvesting.
About the Bye Laws
- 33 States/UTs have adopted the rainwater harvesting provisions.
- The provisions of this chapter are applicable to all the buildings.
Various provisions
- As per Model Building Bye Laws- 2016, provision of rainwater harvesting is applicable to all residential plots above 100 sq.m.
- Water being a State subject, initiatives on water management including conservation and water harvesting in the Country is primarily States’ responsibility.
- So the implementation of the rainwater harvesting policy comes within the purview of the State Government/Urban Local Body / Urban Development Authority.
Back2Basics
Groundwater governance in India
- Central Ground Water Authority (CGWA) has been constituted under Section 3(3) of the ‘Environment (Protection) Act, 1986’ for the purpose of regulation and control of groundwater development and management in the Country.
- CGWA is regulating ground water withdrawal by industries/infrastructure/ mining projects in the country for which guidelines/ criteria have been framed which includes rainwater harvesting as one of the provisions while issuing No Objection Certificate.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Perseverance rover
Mains level: Not Much
NASA has named its next Mars rover ‘Perseverence’.
About Perseverance
- The Perseverance rover weighs less than 2,300 pounds and is managed by NASA’s Jet Propulsion Lab.
- The rover’s mission will be to search for signs of past microbial life. It will also collect samples of Martian rocks and dust, according to the release.
- The rover will also be tasked with studying the red planet’s geology and climate.
- All of NASA’s previous Mars rovers — including the Sojourner (1997), Spirit and Opportunity (2004) and Curiosity (exploring Mars since 2012) — were named in this way.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Bank Mergers
Mains level: Read the attached story
The Union Cabinet, chaired by the Prime Minister has approved the mega consolidation of ten PSBs into four which include the –
- Amalgamation of Oriental Bank of Commerce and United Bank of India into Punjab National Bank
- Amalgamation of Syndicate Bank into Canara Bank
- Amalgamation of Andhra Bank and Corporation Bank into Union Bank of India
- Amalgamation of Allahabad Bank into Indian Bank
About the merger
- The amalgamation would be effective from 1.4.2020 and would result in creation of seven large PSBs with scale and national reach with each amalgamated entity having a business of over Rupees Eight lakh crore.
- The Mega consolidation would help create banks with scale comparable to global banks and capable of competing effectively in India and globally.
- Greater scale and synergy through consolidation would lead to cost benefits which should enable the PSBs enhance their competitiveness and positively impact the Indian banking system.
Must read
Bank Mergers
[Burning Issue] Merger of Public Sector Bank
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Schemes for women empowerment.
Mains level: Paper 2- Various measures and schemes by the government for women empowerment.
Context
On March 8, we honour and celebrate women on the occasion of the International Women’s Day. Women in our country are making strides in social, financial and political fields.
Women breaking the barriers
- Women working for the development of the country: Be it the 1857 mutiny for India’s freedom or the struggle for Independence, our women have always made India proud.
- Even today, women are performing their duties with full devotion for the development of the country and upliftment of society.
- They are working efficiently in various fields, such as academics, literature, music and dance, sports, media, business, information technology, science and technology, politics and social development.
- Breaking barriers in various fields: Indian women from metropolitan cities like Delhi, Mumbai, Kolkata and Chennai are breaking barriers in fields ranging from politics to the corporate sector.
- Giving society a new direction: Women are giving society a new direction through their leadership and critical participation in panchayat elections.
- Increasing awareness and clear intentions are the reason behind women strengthening economic, social and cultural establishments.
- This is very important for a democratic system.
Female participation in the corporate sector
- IT sector participation: There is a constant evolution of female participation in the corporate sector. Female participation is constantly increasing in the Information Technology sector.
- Presence in other areas: Along with the IT sector, the presence of women is also increasing in the banking and finance sector.
- Last year, the Indian Space Research Organisation decided to hand over the command of Chandrayaan-2 to two women, and these women also played a key role in the mission.
Government schemes for women empowerment
- Our government is running many schemes for women’s empowerment such as the Pradhan Mantri Ujjwala Yojana, Beti Bachao Beti Padhao, Mahila E-haat Scheme, Sukanya Samriddhi Yojana, Sakhi Yojana, Ladli Yojana, Digital Laado and the Swachh Bharat Mission.
- Government is also working extensively on women’s nutrition.
- Multiple ministries working on the same: The Ministry of Skill Development and Entrepreneurship, Women and Child Empowerment, and Human Resource Development are working closely in this regard.
- Identification of skill set: We know that every person has a unique skill-set. What is needed is a mechanism to ensure that that skill-set is identified and honed in the best possible way.
- The government need to ensure that all women in our country from different occupations are trained in their respective skill-sets and are employable.
- Government need to put to best use their skill-set to become self-employed entrepreneurs and progress.
- Around 68.12 lakh women in India have been trained under the Pradhan Mantri Kaushal Vikaas Yojana 2.0.
- Under the Jan Shikshan Sansthan Scheme, around 08 lakh women have been trained in the 2018-2020 period, while 38.72 lakh women have been trained in Industrial Training Institutes (ITI).
- At present, there are 18 National Skill Training Institutes across the country to train women. Special batches are being conducted to provide basic, theoretical and advanced training to women.
- Making progress in non-traditional skills: It is a matter of joy and pride that while women in India are studying electronics, fashion design, technology and business management, there are also those who hone their new-age skills in artificial intelligence, data analytics, 3D printing, etc.
- Along with traditional skills like beauty, wellness and healthcare, women are also progressing quickly in non-traditional skills such as electronics and hardware.
The role of various missions in strengthening women’s skill
- The National Rural Livelihood Mission has strengthened women’s skills and prepared them for employment.
- Training for self-employed tailors, beauty therapists, customer care executives, hairstylists, yoga trainers, etc. are being carried out in the Prime Minister Skill Centres.
- Women playing a significant role in various missions: Very soon, one will get to see women playing significant roles in central government schemes such as the Ayushman Bharat Yojana, Swachh Bharat Mission and Smart City Mission.
- By joining these missions, women will make a huge contribution in giving a new shape to society.
- In fact, in the creation of a New India, women’s education and skill development are going to be critical.
- In the last few years, the central government has rolled out various schemes that have emboldened the women of our country and taken them on the path of self-reliance and security.
Conclusion
The efforts of our government have created a milieu of trust in the women of our country. They are confident that the country’s government machinery is standing by them by creating an atmosphere of respect and development for women. In the past few years, our government has made massive advancements in providing education and honing skill-sets. We pledge to make sure that these efforts reach each and every Indian woman.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much.
Mains level: Paper 2- Aligning national curriculum with the needs of the market and society.
Context
The gap between jobs, needs and knowledge, and the absence of role models, could be turning India’s demographic dividend into a nightmare.
National curriculum and problems with it
- What is in our national curriculum? It is a fixed set of topics prescribed in all subjects — from physics to geography, and engineering to planning.
- And it is taught in English at our elite MHRD institutions.
- Designed by professionals: It has not been designed by politicians but by our elite professors and bureaucrats: It is what they believe the nation really needs to know.
- Issue of imposition: It is imposed on ordinary students and parents through competitive exams and on colleges and universities through various central regulatory agencies, most egregiously, through the UGC-NET, an objective-type multiple-choice (!) exam that decides who is fit to be a college teacher.
Issues with the engineering curriculum
- Doesn’t address the regional needs: We already know that the national engineering curriculum fails miserably in meeting regional needs.
- No regional variation accounted for: Engineering for Himachal Pradesh needs to be different from that in Maharashtra or Kerala.
- Not in sync with the demands of the industry: It must address the needs of core industries, local enterprises, the provisioning of basic amenities such as water and energy.
- None of this is in our national curricula or practised at the IITs.
- Moreover, there is no mechanism for engineering colleges to work with their communities.
Issue with the social science curriculum
- No interdisciplinary courses: Let us look at the UGC-NET curricula, which is largely what is taught in our elite institutions.
- At the BA level, it is divided into several disciplines — for instance, political science, sociology and economics.
- This is unfortunate since much of life in India is interdisciplinary.
- As a result, many activities such as preparing the balance sheet for a farmer, or analysing public transport needs, and development concerns such as drinking water or even city governance, are given a miss.
- Example of economics curriculum: The UGC-NET curricula in economics has 10 units, the very last unit is Indian Economics. Unit 8 is on Growth and Development Economics, where the student must know Keynes, Marx, Kaldor, and others.
- There are various mathematical models, for example, the IS-LM macroeconomic model, whose validity in the Indian scenario is questionable.
- Absence of important sectors: The study of sectors such as small enterprises or basic economic services such as transportation is absent. The District Economic Survey, an important document prepared regularly by every state for each district, is not even mentioned.
Sociology curriculum and issues involved
- Absence of certain important items: There is no preamble nor a list of textbooks or case studies.
- Under “Social Institutions”, we have a list of timeless words such as culture, marriage, family and kinship.
- Peasant occurs two times, but there is no farmer. Here is a sample question: “Who uses the phrase ‘fetishism of commodities’ while analysing social conditions?” followed by four names.
- No mention of important data: There is also no mention of important data sets such as the census or developmental programmes including MGNREGA in either curriculum.
Conclusion
- National curricula divorced from the community: The training at our elite institutions, and consequently, in the national curricula, is not to empower ordinary students to probe their lived reality. Or to contribute professionally and constructively to the development problems around us. Rather, it is to perpetuate a peculiar intellectualism which is divorced from the community in which these institutions are embedded.
- Need to rethink the one-nation-one curriculum: One-nation-one-curriculum certainly has some advantages in enabling mobility of some jobs, especially in the national bureaucracy and a multinational economy.
- Cost to the developmental needs: But one-nation-one-curriculum comes at the cost of the developmental needs of the states and the emergence of good jobs there.
- Turning demographic dividend into a nightmare: The above-stated asymmetry is behind the aspirational dysfunction in higher education. It is this disconnect between jobs, needs and knowledge and the absence of role models, which is slowly turning our demographic dividend into a nightmare on the streets.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Biju Patnaik
Mains level: Not Much
Recently, 104th birth anniversary of former Odisha chief minister Biju Patnaik was celebrated. He was a decorated freedom fighter. PM tweeted an Intelligence Bureau document from 1945 to show how Patnaik bravely lent his flying skills to rescue freedom fighters like Ram Manohar Lohia.
Biju Pattnaik
- Bijayananda Patnaik (1916-1997), popularly known as Biju Patnaik, was an Indian politician, aviator and businessman. As politician, he served twice as the Chief Minister of the State of Odisha.
- It is well known that Biju Patnaik actively helped freedom fighters in the 1940s.
- His daring was evident as he actively joined the Quit India movement in 1942 and collaborated with the underground leaders like Jayaprakash Narayan, Aruna Asif Ali and Dr. Ram Manohar Lohia, even while in the British service.
- Patnaik was imprisoned by the British Government for three years later.
Role in foreign freedom struggles
- As an officer in the Royal Indian Air Force in the early 1940s, Patnaik flew innumerable sorties to rescue British families fleeing the Japanese advance on Rangoon, the capital of Burma.
- He also dropped arms and supplies to Chinese troops fighting the Japanese and later to the Soviet army struggling against Hitler’s onslaught near Stalingrad.
- On the 50th anniversary of the end of the war, Patnaik was honoured by the Russians for his help,” the obit noted.
- Interestingly, Nehru entrusted Patnaik with rescuing Indonesian resistance fighters who were fighting their Dutch colonisers.
- Accompanied by wife Gyanwati, “the lanky pilot flew an old Dakota aircraft to Singapore en route to Jakarta where the rebels were entrenched” in 1948.
- Dodging the Dutch guns, he entered Indonesian airspace and landed on an improvised airstrip near Jakarta.
- Using left-over fuel from abandoned Japanese military dumps, Patnaik took off with prominent rebels, including Sultan Shariyar and Achmad Sukarno, for a secret meeting with Nehru at New Delhi.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Virtual Currency, Cryptocurrency
Mains level: Issues with Blockchain Technology
The Supreme Court in a significant move has set aside a ban by the Reserve Bank of India (RBI) on banks and financial institutions from dealing with virtual currency holders and exchanges.
Why did the Supreme Court ban virtual currencies?
- In a circular in 2018, the RBI had banned banks from dealing with virtual currency exchanges and individual holders on the grounds that these currencies had no underlying fiat.
- RBI held that it was necessary for the larger public interest to stop banks from providing any services related to these.
Why was the ban unjustified?
- The court held that the ban did not pass the “proportionality” test.
- The test of proportionality of any action by the government, the court held, must pass the test of Article 19(1) (g) which states that all citizens of the country will have the right to practise any profession, or carry on any occupation or trade and business.
What are virtual currencies?
- There is no globally accepted definition of what exactly is virtual currency.
- Some agencies have called it a method of exchange of value; others have labelled it a goods item, product or commodity.
- In its judgment the apex Court observed- Every court which attempted to fix the identity of virtual currencies, merely acted as the 4 blind men in the Anekantavada philosophy of Jainism, who attempt to describe an elephant but end up describing only one physical feature of the elephant.
Similarities with Bitcoin
- Satoshi Nakamoto widely regarded as the founder of the modern virtual currency bitcoin and the underlying technology called blockchain defined bitcoins as “a new electronic cash system that’s fully peer-to-peer, with no trusted third party”.
- This essentially meant there would be no central regulator for virtual currencies as they would be placed in a globally visible ledger, accessible to all the users of the technology.
- All users of such virtual currencies would be able to see and keep track of the transactions taking place.
Are they different from cryptocurrencies?
- Virtual currency is the larger umbrella term for all forms of non-fiat currency being traded online. Virtual currencies are mostly created, distributed and accepted in local virtual networks.
- Cryptocurrencies, on the other hand, have an extra layer of security, in the form of encryption algorithms.
- Cryptographic methods are used to make the currency as well as the network on which they are being traded, secure.
- Most cryptocurrencies now operate on the blockchain or distributed ledger technology, which allows everyone on the network to keep track of the transactions occurring globally.
Are cryptocurrencies dangerous?
- The jury is out on that. Organisations across the globe have called for caution while dealing with virtual currencies.
- A blanket ban of any sort could push the entire system underground, which in turn would mean no regulation.
- In June 2013, the RBI had for the first time warned users, holders and traders of virtual currencies about the potential financial, operational, legal and customer protection and security-related risks that they were exposing themselves to.
- The following year, the FATF came out with a report that highlighted both legitimate uses and potential risks associated with virtual currencies.
- In a different report, it again said the use of such virtual currencies was growing among terror financing groups.
Why did the RBI ban virtual currencies?
- Owing to the lack of any underlying fiat, episodes of excessive volatility in their value, and their anonymous nature which goes against global money-laundering rules, the RBI initially flagged its concerns on trade and use of the currency.
- Risks and concerns about data security and consumer protection on the one hand, and far-reaching potential impact on the effectiveness of monetary policy itself on the other hand, also had the RBI worried about virtual currencies.
- In its arguments, RBI said it did not want these virtual currencies spreading like a contagion, and had, therefore, in the larger public interest, asked banks not to deal with people or exchanges dealing in these non-fiat currencies.
- The RBI perceived significant spurt in the valuation of many virtual currencies and rapid growth in initial coin offerings as a risk.
Proponent’s stance
- They said the RBI action was outside its purview as the non-fiat currency was not a currency as such.
- They also argued that the action was too harsh and there had been no studies conducted either by the RBI or by the central government.
- Arguing that the ban was solely on “moral grounds”, the petitioners said the RBI should have adopted a wait-and-watch approach, as taken by other regulators such as SEBI.
Faring the Proportionality test
- In its judgment, the Supreme Court held that the RBI directive came up short on the five-prong test to check proportionality.
It includes:
- the direct and immediate impact upon fundamental rights
- the larger public interest sought to be ensured; a necessity to restrict citizens’ freedom
- inherent pernicious nature of the act prohibited or its capacity or tendency to be harmful to the general public
- the possibility of achieving the same object by imposing a less drastic restraint
Way Forward
- The Supreme Court’s judgment could lead to the RBI rethinking its policies surrounding virtual currencies.
- It is expected that the RBI will reconsider its approach to cryptocurrency and come up with a new, calibrated framework or regulation that deals with the reality of these technological advancements.
- The decision will help those investors who had used legitimate money through banking channels.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Media Access Control (MAC) Binding
Mains level: Internet shutdown as an infringement of FR
After seven months, the use of social media was allowed in Jammu and Kashmir with an order laying down the latest rules for the use of the Internet in the UT. Among various conditions, the order says Internet connectivity will be made available “with mac-binding”.
What is Mac-binding?
- Every device has a Media Access Control (MAC) address, a hardware identification number that is unique to it. While accessing the Internet, every device is assigned an IP address.
- Mac-binding essentially means binding together the MAC and IP addresses, so that all requests from that IP address are served only by the computer having that particular MAC address.
- In effect, it means that if the IP address or the MAC address changes, the device can no longer access the Internet.
- Also, monitoring authorities can trace the specific system from which a particular online activity was carried out.
Permitted connections
- The Internet can be accessed on all postpaid devices, and those using Local Area Networks (LAN).
- While the postpaid SIM card holders shall continue to be provided access to the Internet, these services shall not be made available on prepaid SIM cards unless verified as per the norms applicable for postpaid connections.
- Apart from this, special access terminals provided by the government will continue to run.
- It is further directed that the access/communication facilities provided by the government, viz. e-terminals/Internet kiosks apart from special arrangements for tourists, students, traders etc shall continue.
Only 2G permitted
- Internet speed in J&K is still restricted to 2G.
- This means very slow services — pictures will take a long time to be sent or downloaded, videos will be nearly impossible to share, and there will be a long loading time for most websites.
- It also means that although in theory, the “whitelist system” — where people could only access some websites pre-approved by the government — has been removed, some sites designed for a 4G Internet experience will hardly work.
Have curbs been lifted?
- Not exactly. The latest order is to remain in force till March 17 unless modified earlier.
- The government has been relaxing Internet and phone usage in the UTs in phases.
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Note4Students
From UPSC perspective, the following things are important :
Prelims level: Unguarded X hypothesis, Chromosomes
Mains level: NA
Men outnumbered women by 37 million in the 2011 Census of India, but among those over the age of 60, there were more than 1 million more women than men. In general, men live shorter lives than women worldwide. This is due to the chromosomal differences between the two, points’ new study.
What are Chromosomes?
- The human body is made up of cells, and in the centre of each cell is the nucleus. Chromosomes, which are located inside the nucleus, are structures that hold the genes.
- It is the genes that determine the various traits of an individual including eye colour, blood type — and sex.
- The human cell has 23 pairs of chromosomes. One pair is of the sex chromosomes, named X and Y, which determine whether an individual is male or female.
- A female has two X chromosomes (XX) while a male has one X and one Y (XY).
Unguarded X hypothesis
- This hypothesis suggests that the Y chromosome in XY is less able to to protect an individual from harmful genes expressed on the X chromosome.
- In a male, as the Y chromosome is smaller than the X chromosome, it is unable to “hide” an X chromosome that carries harmful mutations, which may later expose the individual to health threats.
- On the other hand, the hypothesis goes, there is no such problem in a pair of X chromosomes (XX) in a female.
- If one of the X chromosomes has genes that have suffered mutations, then the other X chromosome, which is healthy, can stand in for the first, so that the harmful genes are not expressed.
- This maximizes the length of life, according to the hypothesis. And this is what the UNSW researchers set out to examine.
Testing the hypothesis
- In a statement issued by UNSW, PhD student and study first author Zoe Xirocostas said the
- Unguarded X hypothesis appears to stack up, after examining the lifespan data available on a wide range of animal species.
- Researchers studied lifespan data in not just primates but mammals and birds, but also reptiles, fish, amphibians, arachnids, cockroaches, grasshoppers, beetles, butterflies and moths among others.
- It was found that across that broad range of species, the heterogametic sex (XY in humans) does tend to die earlier than the homogametic sex (XX in humans).
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