Nov. 30, 2022

Mains Daily Question
Nov. 30, 2022

“RBI’s commencement of the digital rupee marks appreciable progress toward digital payments.” Comment. (10 Marks, 150 Words)

Model Answer

Central bank digital currency (CBDC) is the legal tender issued by a central bank in a digital form. It is the same as a fiat currency and is exchangeable one-to-one with the fiat currency, only its form is different. In effect, the retail e-rupee will be an electronic version of cash, and will be primarily meant for retail transactions, potentially available for use by all — the private sector, non-financial consumers and businesses.

WHY E-RUPEE:

  • The key motivations for exploring the issuance of CBDC include
    • Reduction in operational costs involved in physical cash management,
    • Fostering financial inclusion,
    • Bringing resilience, efficiency and innovation in the payments system.
  • It will add efficiency to the settlement system and boost innovation in cross-border payments space.
  • Introducing its own CBDC has been seen as a way to bridge the advantages and risks of digital currency.
    • Specially, concerns over money laundering, terror financing, tax evasion, etc. with private crypto currencies like Bitcoin, Ether, etc.
  • Being interoperable with other payment systems, it will complement existing techniques like UPI, thus completing the mobile payments ecosystem.

However, the preference for cash (for small value transactions—of up to 500) represents a discomfort for digital modes of payment, and CBDC is unlikely to replace such cash usage. But the preference for cash for its anonymity can be redirected to acceptance of CBDC, as long as anonymity is assured.
The central bank views the use of the digital rupee as a step towards making the inter-bank market more efficient. 

Subjects : Economy

Nov. 29, 2022

Mains Daily Question
Nov. 29, 2022

"Recently there is a growing voice in favour of reintroducing NJAC Bill". In the light of this statement, critically analyse NJAC Act 2014. (10 Marks, 150 Words)

Model Answer

APPROACH:

  • Introduce with NJAC Act 2014
  • Give arguments for and against the NJAC.
  • Conclude by bringing the recommendation of the law commission report.

Answer:

The National Judicial Appointments Commission (NJAC) Act, 2014 was enacted to regulate the procedure to be followed for recommending names for appointment as Chief Justice of India and other judges of Supreme Court and Chief Justices and judges of High Courts and their transfers.

The Act proposed that the members of NJAC would be composed of members from the legislative, judicial, and civil society.

Arguments in favour of NJAC:

  1. Good for democracy: Democracy, which is also a basic feature of the constitution, requires that no organ of the state, including the judiciary, enjoys absolute freedom.
  2. Non-formal and opaque Collegium system: It is a closed-door affair without a formal and transparent system and has also been accused of nepotism.
  3. Public Confidence in the Judiciary: To retain “public confidence”, “judicial appointments” must have some checks and balances.
  4. Upholds Constitution: The Basic structure of Separation of powers and the Independence of the Judiciary from the executive remains intact under the NJAC as its chairperson is the CJI.

Arguments against NJAC:

  1. Unconstitutional: Introduction of Article 124 A in itself violates the basic structure of “Primacy of the CJI” as laid down in the second judges' case of 1993.
  2. Culture of reciprocity: The involvement of the legislature in the appointment of judges might lead to the creation of a culture of ‘reciprocity.’
  3. Independent-minded Judges: The future judges appointed under NJAC cannot be expected to be independent-minded. The Union Law Minister is the member of the commission responsible for their appointment.
  4. Inclusion of Eminent personalities: The NJAC Act provides arbitrary power to the Union executive to appoint two eminent personalities to the NJAC body.
  5. The applicability of veto power by the two eminent personalities was speculated to be biased.

The Law Commission in its 214th Report on Proposal for Reconsideration of Judges cases I, II and III recommended two solutions:

  • To seek a reconsideration of the three judgments before the Supreme Court.
  • A law to restore the primacy of the CJI and the power of the executive to make appointments.
Subjects : Polity

Nov. 28, 2022

Mains Daily Question
Nov. 28, 2022

MUDRA loans have lower NPA percentage compared to the overall sector. Discuss. (10 Marks)

Model Answer

APPROACH:

  • Introduce MUDRA scheme (PMMY)
  • In body part, compare NPA percentage of PMMY and overall sector
  • In conclusion comment upon the statistics.

Ans: The Micro Units Development & Refinance Agency (MUDRA) was launched on April 8, 2015 to provide loans up to Rs 10 lakh to non-corporate, non-farm, small and micro enterprises. Called the Pradhan Mantri Mudra Yojana, loans are given under three categories: Shishu up to Rs 50,000, Kishore Rs 50,001 to Rs 5 lakh, and Tarun from Rs 5 lakh to Rs 10 lakh.

NPA Comparison:

  • Bad loans under the Pradhan Mantri MUDRA Yojana for all banks is just 3.38 per cent of the total disbursements, however, the banking sector as a whole stood at 5.97 per cent for the year-ending March 31, 2022.
  • Non-performing assets of banks for Mudra loans – including those extended during the Covid-19 pandemic are lower than the average NPAs of the sector as a whole.
  • The NPAs for Shishu loans were the lowest at 2.25 per cent of disbursements and the highest for Kishore loans at 4.49 per cent. For Tarun loans bad loans were 2.29 per cent of disbursements.

These comparative figures clearly tell us that when it comes to the Indian banking sector, small borrowers are not the problematic lot, but the large ones are. One reason for the low NPAs of MUDRA loans perhaps lies in the fact that a bulk of them is given to women.

Subjects : Economy

Nov. 27, 2022

Mains Daily Question
Nov. 27, 2022

Q. The real utility of MNREGA was witnessed during COVID times. Comment. (10 Marks) 

Model Answer

Approach:

  • Introduce MGNREGA with its objectives
  • In the body part comment upon MNREGA & COVID times
  • Conclude with suggestions for better implementation and efficacy of the scheme.

Answer:

The Mahatma Gandhi National Rural Employment Guarantee Act was passed in 2005, and the demand-driven scheme guarantees 100 days of unskilled work per year for every rural household that wants it.

The objectives of the act are to provide safety nets for vulnerable groups, provide an engine for the agricultural sustainable development, empower the rural poor and promote new ways of doing businesses by providing work for unskilled workers at the wage rate specified by the Central Government.

MGNREGA & COVID

  • MGNREGA acted as a crucial safety net during the COVID pandemic as the number of person days of work provided under the scheme rose drastically in FY 2020-21.
  • MGNREGA’s role for reducing vulnerability has been reemphasized and continues to be of vital importance in post-pandemic times.
  • For households who found work in both the periods (pre-Covid and Covid), increased earnings from MGNREGA were able to compensate for somewhere between 20 to 80 percent of income loss depending on the block.

Way forward

  • Institutional mechanisms, including governance and administrative structures, for more effective utilization of funds, especially to address poverty need to be examined.
  • In addition to manual updating of information on job cards, equip each panchayat to a job card printing facility similar to passbook updation facilities in banks.
  • It is to be ensured that the GPs (gram panchayats) get funds in advance and have more authority in sanctioning works. This will ensure that the mandate of the 73rd constitutional amendment is honoured and work is available on demand.
Subjects : Current Affairs

Nov. 26, 2022

Mains Daily Question
Nov. 26, 2022

"The real utility of MNREGA was witnessed during COVID times." Comment. (10 Marks, 150 Words)

Model Answer

Approach:

  • Introduce MGNREGA with its objectives
  • In the body part comment upon MNREGA & COVID times
  • Conclude with suggestions for better implementation and efficacy of the scheme.

Answer:

The Mahatma Gandhi National Rural Employment Guarantee Act was passed in 2005, and the demand-driven scheme guarantees 100 days of unskilled work per year for every rural household that wants it.

The objectives of the act are to provide safety nets for vulnerable groups, provide an engine for the agricultural sustainable development, empower the rural poor and promote new ways of doing businesses by providing work for unskilled workers at the wage rate specified by the Central Government.

MGNREGA & COVID

  • MGNREGA acted as a crucial safety net during the COVID pandemic as the number of person days of work provided under the scheme rose drastically in FY 2020-21.
  • MGNREGA’s role for reducing vulnerability has been reemphasized and continues to be of vital importance in post-pandemic times.
  • For households who found work in both the periods (pre-Covid and Covid), increased earnings from MGNREGA were able to compensate for somewhere between 20 to 80 percent of income loss depending on the block.

Way forward

  • Institutional mechanisms, including governance and administrative structures, for more effective utilization of funds, especially to address poverty need to be examined.
  • In addition to manual updating of information on job cards, equip each panchayat to a job card printing facility similar to passbook updation facilities in banks.
  • It is to be ensured that the GPs (gram panchayats) get funds in advance and have more authority in sanctioning works. This will ensure that the mandate of the 73rd constitutional amendment is honoured and work is available on demand.
Subjects : Current Affairs

Nov. 25, 2022

Mains Daily Question
Nov. 25, 2022

Differentiating between the core functions of NAA and CCI, discuss its challenges of implementation in the light of recent transfer of powers. (10 Marks, 150 Words)

Model Answer

Approach:

  • Introduce the answer with functions of NAA and CCI.
  • Discuss the foreseen implementing challenges in body part.
  • Conclude the answer with futuristic view.

Answer:

The NAA was set up in November 2017 under Section 171A of the GST law to check unfair profiteering activities by registered suppliers. Its core function is to ensure that benefits of reduction in GST rates on goods and services and of the input tax credit are passed on to consumers by way of reduction in prices.

CCI was established to enforce the law under Competition Act, 2002. It is tasked with the job of eliminating anti-competitive practices, protecting the interest of consumers and ensuring free trade in general in the economy.

Challenges:

  • Transfer of all pending cases from NAA to CCI and forming a special bench for adjudication may take some time before things ease out.
  • Jurisdictional high courts will consider remanding all the writ petitions filed in profiteering cases to CCI.

While it is a welcome step to have CCI as the body since it has the institutional maturity and is adequately positioned to handle pricing matters. However, the fundamental issue of what would constitute “commensurate reduction in price” and various methods employed by company like increasing grammage, practice of zeroing etc. shall continue to remain disputed before various High Courts.

Subjects : Current Affairs

Nov. 24, 2022

Mains Daily Question
Nov. 24, 2022

The parity in levying taxes to casinos, racecourses, and online gaming under the Goods and Services Tax (GST) is moving in the right direction. Comment. (10 Marks, 150 Words)

Model Answer

Approach:

  • Introduce with the suggestion of 28% GST to casinos, racecourses, and online gaming by GoM.
  • In the body part, state the reasons and issues raised by stakeholders.
  • Conclude by highlighting the stand of the GoM in the recent meeting.

Answer:

The panel of state finance ministers is likely to recommend a uniform GST levy of 28 % on online gaming irrespective of whether it is a game of skill or a game of chance. The GoM deliberated on separate definitions for 'games of skill' and 'games of chance’, but has settled for a uniform slab for both.

Most states agree on a 28% tax rate for gaming considering it as a service like that of casinos but differ on the valuation mechanism. West Bengal and Uttar Pradesh support taxing the total value, while Goa recommends a tax on the entry point for casinos.

Online gaming witnessed a spurt during the lockdown with the number of users in India rising substantially. As per a KPMG report, the online gaming sector would grow to Rs 29,000 crore by 2024-25 from Rs 13,600 crore in 2021. Stakeholders from inside the industry have suggested keeping the slab at 18% looking at the potential of the sector and initiatives like StartUp India, where it can play a major role. Currently, online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals.

However, the GoM has suggested that online gaming is a demerit good and charging 28% in parity with casinos and the racecourse will bring uniformity in the GST slab. However, some relaxation in valuation methods could be provided.

Subjects : Economy

Nov. 23, 2022

Mains Daily Question
Nov. 23, 2022

Outline the various provisions that ensure the independence of the Election Commission of India. (10 Marks, 150 Words)

Model Answer

Approach:

  • Briefly introduce the Election Commission of India as the watchdog of democracy
  • In the body part, state the constitutional and statutory Provisions, along with conventions that ensures the independency of the ECI
  • Conclude the answer by stating the reforms needed to make it a more effective body

Answer:

The Election Commission of India is an autonomous constitutional authority responsible for administering Union and State election processes in India and the election for the office of President and Vice President. Its primary task is to assure free and fair elections.

Provisions that ensure the independence of ECI:

Constitutional Provisions:

  • The Chief Election Commissioner (CEC) can be removed in a similar manner as that of a Judge of Supreme Court.
  • Conditions of service of the CEC shall not be varied to his disadvantage after appointment.
  • Any Election Commissioner or a Regional Commissioner shall not be removed from office except on the recommendation of the CEC.

Statutory Provisions - under the Chief Election Commissioner and Other Election Commissioners (Conditions of Service) Act, 1991:

  • Term of service to be 6 years or till the age of 65 years
  • The rank and status of the CEC and other EC to be same as Supreme Court Judge.

Conventions:

  • The CEC or ECs are Senior Civil servants or retired civil servants who have good knowledge in administration.
  • Provisions of reappointment is not available on completion of term commissioners.

Way forward:

  1. Make the appointment through a high-level panel/multiple-member body similar to CVC appointment. Even the Chief Justice of India can be included in the appointment committee to ensure “neutrality”.
  2. Removal: The election commissioners should be removed in a similar fashion as that of the CEC.
  3. On completion of term, the commissioners should not join any political party for least 10 years.
  4. The Administrative expenditure of the ECI should be charged on CFI.
Subjects : Polity

Nov. 22, 2022

Mains Daily Question
Nov. 22, 2022

The Development of the Great Nicobar Islands has its own strategic importance for India but comes with plenty of ecological concerns. Do you agree? (10 Marks, 150 Words)

Model Answer

Approach:

  • Introduce the answer by stating the recently sanctioned fund for the development of the Great Nicobar Island.
  • The body of the answer can be divided into two major parts- first to address the strategic importance of the island in the context of consolidation of the Indian Ocean region and second to chart out the issues related to the development of the Pristine area.
  • Conclude the answer with a balanced approach of how the project will help India in long run.

Answer:

The recently launched prestigious project of holistic development of Great Nicobar Island (GNI) which aims to establish a Greenfield International Airport, an International Container Transhipment Terminal, a Township and a Power plant in Great Nicobar Island will transform the Island into a hub of port-led development.

The GNI is a biosphere reserve and was included in the UNESCO Man and Biosphere Programme in 2013.

Strategic Importance:

The Indian Ocean Region in general and the Indian Ocean in particular has turned into a strategic hotspot in recent years with the rising importance of the Indo-pacific region, rising China and the need for strengthened naval forces for military and economic regions. In this scenario, critical development of the Andaman and Nicobar Islands is necessary for strengthening India's regional presence.

The Great Nicobar Island also represents a significant economic development opportunity as the main east-west shipping route that links east Asian exports with the Indian Ocean, Suez Canal and Europe runs just to the south of this Island.

Ecological challenges: 

The GNI are home to the indigenous Shompen tribe, besides rare flora and fauna from the Nicobar megapode, leatherback turtles, the endemic Nicobar Macaque and saltwater crocodiles. 30 of the 51 active nests of the Nicobar megapod the keystone species of Nicobar Island will be permanently destroyed. It will also involve the felling of over 8.5 lakh trees, loss of 12-20 hectares of mangrove cover, claiming 298 hectares of the seabed and considerable coral translocation.

The GNI project has been conceived based on the principles of Sustainable Development wherein the ecological, economic and social factors have been given due consideration at every stage. The project will not only ensure a significant presence of the country in the Malacca Strait but also enhance socio-economic growth and usher in a new era for all-round development of Andaman & Nicobar Islands and Great Nicobar Island in particular.

Subjects : Current Affairs

Nov. 21, 2022

Mains Daily Question
Nov. 21, 2022

Discuss the potential challenges of the recently approved “loss and damage” fund at COP 27 to help cope with the climate disaster. (10 Marks)

Model Answer

Approach:

  • Introduce the topic with agreement concluded in COP 27
  • Body part should focus on the challenges to attain the success of agreement
  • Conclude with general need to save climate.

Answer:

More than 200 nations agreed to create a loss and damage fund to which, developed nations will provide the fund, which will then be distributed to "particularly vulnerable" nations. It is to help poor countries cope with climate disasters made worse by the greenhouse gases from wealthy nations.

Potential Challenges:

  • The agreement hammered out says that nations cannot be held legally liable for payments.
  • The United States and the European Union pushed that China will eventually contribute to any fund created and would not be eligible to receive money from it. China is currently classified as a developing country and now the world’s biggest emitter of greenhouse gases.
  • US, the European Union and other wealthy emitters made a pledge to mobilize $100 billion per year in climate finance to help poorer countries shift to clean energy and adapt to future climate risks through measures like building sea walls. They are still falling short by tens of billions of dollars annually.
  • While the agreement dealt with the damages from global warming, it did far less to address the root cause of the crisis.

The planet has already warmed by an average of 1.1 degrees Celsius, and scientists have said that countries need to cut their carbon emissions more quickly and more significantly to keep warming to 1.5 degrees Celsius. Every fraction of a degree of additional warming could mean tens of millions more people worldwide exposed to life-threatening heat waves, water shortages and coastal flooding.

Subjects : Environment
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