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  • Bill to amend Multi-State Cooperative Societies Act introduced in LS

    The Multi-State Cooperative Societies (Amendment) Bill, 2022, aimed at bringing in transparency in the sector, was introduced in the Lok Sabha.

    What is MSCS Act, 2002?

    • Cooperatives are a state subject, but there are many societies such as those for sugar and milk, banks, milk unions etc. whose members and areas of operation are spread across more than one state.
    • The MSCS Act was passed to govern such cooperatives.
    • For example, most sugar mills along the districts on the Karnataka-Maharashtra border procure cane from both states.

    What are Multi-State Cooperatives?

    • They draw their membership from two or more states, and they are thus registered under the MSCS Act.
    • Their board of directors has representation from all states they operate in.
    • Administrative and financial control of these societies is with the central registrar, with the law making it clear that no state government official can wield any control on them.

    Why does the government plan to amend the Act?

    (1) Issues with Central Registrar

    • The exclusive control of the central registrar, who is also the Central Cooperative Commissioner, was meant to allow smooth functioning of these societies.
    • The central Act cushions them from the interference of state authorities so that these societies are able to function in multiple states.
    • What was supposed to facilitate smooth functioning, however, has created obstacles.
    • For state-registered societies, financial and administrative control rests with state registrars who exercise it through district- and tehsil-level officers.

    (2) Multiple checks and balances

    • Thus if a sugar mill wishes to buy new machinery or go for expansion, they would first have to take permission from the sugar commissioner for both.
    • Post this, the proposal would go to the state-level committee that would float tenders and carry out the process.
    • While the system for state-registered societies includes checks and balances at multiple layers to ensure transparency in the process, these layers do not exist in the case of multistate societies.
    • Instead, the board of directors has control of all finances and administration.

    (3) Lack of govt control

    • There is an apparent lack of day-to-day government control on such societies.
    • Unlike state cooperatives, which have to submit multiple reports to the state registrar, multistate cooperatives need not.
    • The central registrar can only allow inspection of the societies under special conditions — a written request by one-third of the members of the board.
    • Inspections can happen only after prior intimation to societies.

    (4) Lack of infrastructure

    • The on-ground infrastructure for central registrar is thin — there are no officers or offices at state level, with most work being carried out either online or through correspondence.
    • For members of the societies, the only office where they can seek justice is in Delhi, with state authorities expressing their inability to do anything.

    (5) Ponzi schemes functioning as MCS

    • There have been instances across the country when credit societies have launched ponzi schemes taking advantage of these loopholes.
    • Such schemes mostly target small and medium holders with the lure of high returns.
    • Fly-by-night operators get people to invest and, after a few instalments, wind up their operations.

    Need for Amendment

    • At present, India has more than 1,500 multi-State cooperative societies.
    • The Bill seeks to strengthen governance, reform the electoral process, improve the monitoring mechanism, and ensure ease of doing business in multi-State cooperative societies.
    • It also aims to improve the composition of boards and ensure financial discipline, besides enabling the raising of funds in multi-State cooperative societies.

    Key establishments under the Amendment Bill

    • In order to make the governance of multi-State cooperative societies more democratic, transparent and accountable, the Bill has provisions for setting up of –
    1. Cooperative Election Authority,
    2. Cooperative Information Officer and
    3. Cooperative Ombudsman.

    Other features

    • Constitution of interim board: The Bill allows the central registrar to declare any multi-state cooperative society as sick. The Central government may, on the recommendation of the registrar, appoint an interim board for a maximum of five years. The central registrar can also declare a cooperative to be viable within the five years. The board of directors before the cooperative was declared sick shall be reinstated.
    • Elections: The Act states that elections shall be conducted by the existing board. The Bill amends this to state that the Central government may appoint a Cooperative Election Authority to conduct elections in cooperative societies to be prescribed.
    • Constitution of Fund: The Bill states that the central government shall set up the Cooperative Rehabilitation and Reconstruction Fund. A cooperative society shall credit 0.005% to 0.1% of its turnover to the fund, provided it does not exceed Rs 3crores per year.

     

     

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  • Who exactly counts your Vote after polling?

    For a country like India where each individual constituency can have lakhs of voters, counting votes is a complex process that requires both pace and precision.

    Where are the Votes counted?

    • Ideally, all votes should be counted in one location in the constituency.
    • However, during General Elections, when seats are larger with multiple Assembly constituencies, many counting centres can be appointed, depending on the number of votes that need to be counted.
    • The location(s) for counting votes is decided by the Returning Officer (RO), with multiple centres in assembly segments being under the supervision of the Assistant Returning Officers (ARO).
    • In counting centres, ideally all votes are counted in one big hall having multiple tables.
    • However, if the RO feels there is a risk of overcrowding, more rooms may be opened up after permission from the Election Commission (EC).

    Role of Returning Officer

    • The RO is appointed for each constituency by the Election Commission.
    • During the duration of the election, the RO is the highest authority in the constituency having a wide range of powers in order to peacefully and impartially conduct elections.
    • With respect to counting of votes, the RO has the following duties:
    1. To designate the counting centres and get them approved by the Commission well in advance;
    2. To send notice to the candidates about the place, date and time of counting of votes;
    3. To appoint and train counting staff;
    4. To count the votes and declare the result.
    • ROs themselves do not count all votes but verify the counting at multiple stages and announce the results.
    • They are the final authority in the matter of vote counting in an election.

    Supervision of the process

    • A counting room will have multiple counting tables with each counting a set number of postal ballots/EVMs on a round-to-round basis.
    • On each table, there is a counting supervisor and up to two assistants who do the actual counting.
    • They should be gazetted officers and are appointed by the RO.
    • They receive specific training pertaining to the tasks they are expected to undertake.
    • For instance, for those counting postal ballots, the training is different from that received for counting EVM votes.

    Observers in the counting process

    • The EC appoints observers at each counting room, who are supposed to record the proceedings and file a report.
    • They are generally employees of the GoI, and are tasked with the duty to oversee overall functioning of the election apparatus.
    • Candidates who were on the ballot are also allowed in the counting room along with their representatives.
    • All parties and candidates send counting agents in order to ensure that votes are counted fairly and according to procedure, and lodge complaints, if any.

     

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  • ISRO to establish SpaceTech Innovation Network (SpIN)

    spin

    The Indian Space Research Organisation (ISRO) has signed a MoU with Social Alpha, a multistage innovation curation and venture development platform, to launch SpaceTech Innovation Network (SpIN).

    SpaceTech Innovation Network (SpIN)

    • SpIN is India’s first dedicated platform for innovation, curation, and venture development for the burgeoning space entrepreneurial ecosystem.
    • SpIN will primarily focus on facilitating space tech entrepreneurs in three distinct innovation categories:
    1. Geospatial Technologies and Downstream Applications;
    2. Enabling Technologies for Space & Mobility; and
    3. Aerospace Materials, Sensors, and Avionics.

    Key initiative

    • SpIN has launched its first innovation challenge for developing solutions in areas of maritime and land transportation, urbanization, mapping, and surveying.
    • The selected start-ups and innovators will be able to access both Social Alpha’s and ISRO’s infrastructure and resources as per the prevailing guidelines.
    • They will be provided active hand-holding in critical areas, including access to product design, testing and validation infrastructure, and intellectual property management.

     

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  • The ‘Global South’ Narrative

    south

    As India assumed the presidency of the G20 group of countries for 2022 to 2023, EAM S Jaishankar said on December 1 that India would be the voice of the Global South that is otherwise under-represented in such forums.

    What is ‘Global South’?

    • The term has since been used multiple times, such as when Jaishankar said of ongoing global conflicts, “polarisation may occur elsewhere, the people who suffer most are the Global South”.
    • ‘Global North’ refers loosely to countries like the US, Canada, Europe, Russia, Australia and New Zealand, while ‘Global South’ includes countries in Asia, Africa and South America.

    Behind the binary difference: ‘Global North’ and the ‘Global South’

    • For a long time in the study of international political systems, the method of categorising countries into broad categories for easier analysis has existed.
    • The concepts of ‘East’ and ‘West’ is one example of this, with the Western countries generally signifying greater levels of economic development and prosperity among their people.
    • Eastern countries were considered as being in the process of that transition.

    What are other such categorizations?

    • Another similar categorisation is of First World, Second World and Third World countries.
    • It referred to countries associated with the Cold war-era alliances of the US, the USSR, and non-aligned countries, respectively.
    • The idea of the “third” world underlined that it was not only different from the “first” — the capitalist West — but also and the second — the socialist “East”.

    Concept behind: World Systems Approach

    • At the centre of these concepts is the World Systems approach introduced by sociologist Immanuel Wallerstein in 1974, emphasising an interconnected perspective of looking at world politics.
    • He said there are three major zones of production: core, peripheral and semi-peripheral.
    • The core zones reap profits, being the owners of cutting-edge technologies – countries like the US or Japan.
    • Peripheral zones, on the other hand, engage in less sophisticated production that is more labour-intensive.
    • In the middle are countries like India and Brazil.

    Need for new terms

    (1) Global shift of powers

    • In the post-Cold War world, the First World/Third World classification was no longer feasible.
    • This is because when the Communist USSR disintegrated in 1991, most countries had no choice but to ally at some level with the capitalist US – the only remaining global superpower.

    (2) Monolithic classification

    • The East/West binary was seen as often perpetuating stereotypical thinking about African and Asian countries.
    • Categorising incredibly diverse countries into a monolith was felt to be too simplistic.
    • Also, the idea that some countries were ‘developed’ while others were not was thought to be too wide a classification, inadequate for accurately discussing concerns.

    (3) Issues with Developed vs. Developing

    • Writing in 2014 from the perspective of his organisation’s philanthropic activities, Bill Gates said of the ‘developing’ tag.
    • It found an irony that- any category that lumps China and the Democratic Republic of Congo together confuses more than it clarifies.
    • Some so-called developing countries have come so far that it’s fair to say they have developed.
    • A handful of failed states are hardly developing at all. Most countries are somewhere in the middle.

    Emergence of Global South

    • Colonial past: A big commonality between the South countries is that most have a history of colonization, largely at the hands of European powers.
    • No say since de-colonization: Region’s historical exclusion from prominent international organizations – such as from the permanent membership of the UN is intriguing.
    • Consciousness for decision-making: As bodies like the UN and the IMF are involved in major decision-making that affect the world in terms of politics, economy and society, the exclusion is seen by these countries as contributing to their slower growth.
    • Economic emergence: China and India have emerged economically sound in the past two decades.
    • Declining US hegemony: Many consider the world to now be multipolar rather than one where the US alone dominates international affairs.
    • Climate reparations: In the ongoing debate adds Northern countries paying for funding green energy, having historically contributed to higher carbon emissions.

    Criticism of the classification

    • Only few players: South simply aims to replace the North and the positions it occupies, again continuing a cycle in which a few countries accumulate crucial resources.
    • More of a India vs. China competition: Much controversy currently surrounds the question of whether elites of the global South and ‘rising powers’ genuinely have the intention to challenge the dominant structures of global capitalist development”.
    • Anti-china motive: China’s tentative “going out” strategy at the turn of the century eventually morphed into the expansive Belt and Road Initiative.

    Where does India stand?

    • No further diplomatic groupism: EAM S Jaishankar India’s objective is not to rebuild a global trade union against the North.
    • Bridging the divide: India is eager to become a bridge between the North and the South by focusing on practical outcomes rather than returning to old ideological battles.

    Challenges

    • Political consistency: In the past, India’s ideological enthusiasm for the Global South was not matched by material power and political will.
    • Bridging the neighbours: India must also come to terms with the fact that the Global South is not a coherent group and does not have a single shared agenda.
    • Despaired south: There is much differentiation within the South today in terms of wealth and power, needs and capabilities.
    • Defiance from NAM: India’s Third World strategy (and Non-Aligned Movement) in the Cold War era was undermined by multiple internal and regional conflicts within the Global South.

    Way ahead

    • More engagement in neighborhood: Championing the Global South today would demand more active Indian engagement with the messy regional politics within the developing world.
    • Political coherence: If India can translate this ambition into effective policy, there will be no contradiction between the simultaneous pursuit of universal and particular goals.

     

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  • What is missing in Delhi’s breathing

    Delhi

    Context

    • Every year around Deepavali, and like clockwork, Delhi’s air quality makes it to the headlines. As firefighters we are doing well, but as planners doing very little. While nature will not change, emissions can be reduced. While a lot has been written and said about Delhi’s air quality, the question that still has to be answered is this: why is nothing changing after all these years?

    Air pollution and its impact

    • Air pollution a health crisis in making: Increasingly polluted air is a hazard and a health crisis in the making, in fact, it is already one.
    • Air pollution related death in India: India now reports 2.5 million air pollution-related deaths annually.
    • Air pollution not confined to external hazard: Pollution not only makes our throats and eyes burn but is much more insidious.
    • Pollutants can enter bloodstreams: Some pollutants are so small that they are able to enter the bloodstream with ease, impacting almost every organ in the body and leading to the onset of health issues such as stroke, heart diseases, respiratory diseases and cancer, to name just a few serious health problems.

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    Delhi

    Critique: Why is nothing changing after all these years?

    • Applying same approach without through evaluation: A principal reason is that year after year, we are doing the same things to try and address the problem without actually trying to evaluate why those measures are not effective.
    • Inefficiency of Commission for Air Quality Management: The Government formed the Commission for Air Quality Management, which, unfortunately, did not offer anything new. This body essentially issued the same orders the Ministry and the Environment Pollution (Prevention and Control) Authority used to, with just a slight change in the language used.
    • Same advisory every year than the preventive measures: Every year schools are closed, people are advised to to stay indoors, or carpool and work from home, bans on firecrackers are reinforced, construction stopped, trucks and cars not allowed to enter the city, and industries running on fuel shut. These measures, and several others, are akin to dressing a bullet wound with band-aid.

    Analysis: Is it only stubble burning is the culprit behind Delhi’s air pollution?

    • Delhi’s bad air when stubble is not being burnt: Stubble burning in the neighbouring States being identified as the main culprit. However, the reality is that Delhi’s air is bad even when stubble is not being burnt.
    • Burning of biomass in and around Delhi: The burning of biomass in and around Delhi, if audited properly, would be the same as stubble burning in other States. Unfortunately, none of the bodies, be it the municipal body or the government’s Public Works Department, is willing to take responsibility for this or address and find a solution to the problem.
    • Less compliance on construction activities: Delhi chokes on its own dust and industrial activities. No clarity on how and who is ensuring compliance with the rules relating to the handling of construction and demolition waste.
    • Heavy reliance on private Vehicles which is another major source of pollution: Vehicles are another source of pollution in the city. Despite an expanding fleet of public transport, citizens who primarily use two-wheelers have not moved to using the public transport system, buses and the metro. Reasons for this may include last-mile connectivity, the problem of crowding in buses and metros, and the inability to reach and navigate narrow lanes that two-wheelers can. The state of maintenance of buses could be another reason as well.

    Delhi

    What needs to be done?

    • Look beyond the measures that have already been tried: We have to be creative and look beyond the measures that have already been tried and proved they are at best a short-term solution to a recurring, long-term problem.
    • Making efficient and coordinated governance mechanism: Core issue that needs to be addressed is the governance system. There needs to be a single entity that takes responsibility for air quality management. We cannot operate in silos where one system of governance is responsible for thinking, a second issues orders and a third is responsible for implementation. There need to be an efficient system that works in a coordinated way.
    • Acknowledge the reality and not just taking the actions in the time of crisis: The reality also is that Delhi is not the sole offender. There are many other cities in India where safe levels of air quality are breached regularly. We need to take more comprehensive, long-term measures throughout the year and not just in the days and weeks when it begins to make news.

    Conclusion

    • This is not to say that stubble burning is not a problem. Some solutions have been tried out over the years, but with little success. Unless farmers are adequately compensated, the problem is unlikely to go away. What is required is a fundamental shift in agricultural patterns, and a strong political will to take bold decisions.

    Mains question

    Q. Do you agree with the statement that only stubble burning is the culprit behind Delhi’s air pollution?

  • Pendency falls in the Child Adoption cases

    The pendency in the adoption of children has come down to 644 from 905 over the last two months since the new Adoption Regulations were notified.

    What is the news?

    • The Rules for the adoption of the Juvenile Justice Act were notified in September this year.

    Adoption Regulations, 2022

    • The new rules empower District Magistrates to issue adoption orders.
    • Earlier, this power was exercised by the judiciary.
    • Changes have also been made to the Child Adoption Resource Information and Guidance System (CARINGS) online platform for adoption.
    • In accordance with the new rules, prospective adoptive parents can now opt from their home State or region.
    • This has been mandated to ensure that the child and the family adjust well with each other, belonging to the same socio-cultural milieu.

    Adoption in India: A backgrounder

    • In 2015, the then Minister for Women and Child Development centralised the entire adoption system by empowering Central Adoption Resource Authority (CARA).
    • CARA is an autonomous and statutory body of Ministry of Women and Child Development set up in 2015.
    • It was empowered to maintain in various specialised adoption agencies, a registry of children, prospective adoptive parents as well as match them before adoption.
    • This was aimed at checking rampant corruption and trafficking as child care institutions and NGOs could directly give children for adoption after obtaining a no-objection certificate from CARA.

    Why is there concern over the revised rules?

    • Parents, activists, lawyers and adoption agencies will have to be transferred and the process will have to start afresh.
    • A delay in such an order can often mean that a child can’t get admission into a school because parents don’t yet have a birth certificate.
    • Parents and lawyers also state that neither judges, nor DMs are aware about the change in the JJ Act leading to confusion in the system and delays.
    • DMs don’t handle civil matters that bestow inheritance and succession rights on a child.
    • If these rights are contested when a child turns 18, a judicial order is far more tenable to ensure the child is not deprived of his or her entitlements.

    Is it such a big issue?

    • The Central Adoption Resource Authority (CARA) says there are nearly 1,000 adoption cases pending before various courts in the country.
    • This is not such a huge burden.

    What is the adoption procedure in India?  

    • Adoptions in India are governed by two laws:
    1. Hindu Adoption and Maintenance Act, 1956 (HAMA): It is a parent-centric law that provides son to the son-less for reasons of succession, inheritance, continuance of family name and for funeral rights and later adoption of daughters was incorporated because kanyadaan is considered an important part of dharma in Hindu tradition.
    2. Juvenile Justice Act, 2015: It handles issues of children in conflict with law as well as those who are in need of care and protection and only has a small chapter on adoptions.
    • Both laws have their separate eligibility criteria for adoptive parents.
    • Those applying under the JJ Act have to register on CARA’s portal after which a specialised adoption agency carries out a home study report.
    • After it finds the candidate eligible for adoption, a child declared legally free for adoption is referred to the applicant.
    • Under HAMA, a “dattaka hom” ceremony or an adoption deed or a court order is sufficient to obtain irrevocable adoption rights.

    Issues with child adoption in India

    • Parent-centrism: The current adoption approach is very parent-centred, but parents must make it child-centred.
    • Age of child: Most Indian parents also want a child between the ages of zero and two, believing that this is when the parent-child bond is formed.
    • Institutional issues: Because the ratio of abandoned children to children in institutionalised care is lopsided, there are not enough children available for adoption.
    • Lineage discrimination: Most Indians have a distorted view of adoption because they want their genes, blood, and lineage to be passed down to their children.
    • Red-tapism: Child adoption is also not so easy task after the Juvenile Justice Rules of 2016 and the Adoption Regulations of 2017 were launched.

    Practical issues in adoption

    • There are no rules for monitoring adoptions and verifying sourcing of children and determining whether parents are fit to adopt.
    • There are many problems with the adoption system under CARA but at the heart of it is the fact that there are very few children in its registry.
    • According to the latest figures there are only 2,188 children in the adoption pool, while there are more than 31,000 parents waiting to adopt a child.

     

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  • What is Goods Trade Barometer?

    barometer

    The World Trade Organization’s Goods Trade Barometer says the global economy, hit by strong headwinds and weakening import demand, may see trade growth slowdown in the closing months of 2022 and into 2023.

    What is Goods Trade Barometer?

    • The Goods Trade Barometer was developed by the WTO to complement conventional trade statistics and forecasts.
    • It is the world’s leading composite indicator that highlights the turning points in the global merchandise trade and provides forecasts of its likely trajectory in the near future.
    • It is released on a quarterly basis based on the availability of data.
    • It provides real-time data on the trajectory of merchandise trade relative to the current trends.
    • Values higher than 100 indicates above-trend growth and the values less than 100 indicates below-trend growth.

    Key trends

    • In its recent release, it said trade growth is likely to slow down in 2022 and into 2023.
    • Reflecting a cooling demand for traded goods based on actual trade developments through the second quarter of 2022, the current reading of 96.2 is below the baseline value index and the prior reading of 100.0.
    • The downturn in the goods barometer is in line with the earlier forecast which predicted a merchandise trade volume growth of 3.5% in 2022 and a revised lower estimate of 1% for 2023.

    Impact on India’s trade balance

    • With a likely fall in export earnings, and no decrease in imports of essential items like crude oil and capital goods, India’s trade deficit is set to widen.
    • The projection is that the country’s current account trade deficit is expected to be around 3% of GDP for FY23.
    • Foreign exchange reserves which have already depleted by over $100 billion over the last year are likely to shrink further.

    What does a slowdown mean for India?

    • India is not an export-led economy. In FY22, 21.5% of Indian GDP depended on exports.
    • However, in view of the poor performance of the country’s major market destinations such as the US and China, Indian exports are bound to suffer.
    • During the subprime crisis which engulfed the entire world, India’s export-oriented sectors had to pay the price though the economy was to a large extent insulated due to a vibrant rural sector.
    • But currently rural India is not in a strong position unlike in 2008-09.

     

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  • SC offers to find solution to ‘deceitful conversions’

    The Supreme Court said that- acts of charity or good work to help a community or the poor should not cloak an intention to religiously convert them as payback.

    What did the SC say?

    • Conversion on the basis of a voluntarily felt belief in the deity of a different faith is different from belief gained through allurement.
    • The court said it would examine such veiled intentions behind religious conversions through allurement by offering food, medicines, treatment, etc.

    What is Religious Conversions?

    • Religious conversion is the adoption of a set of beliefs identified with one particular religious denomination to the exclusion of others.
    • It is one of the most heated issues in the society and politics which can be defined as the adoption of any other religion or of a set of beliefs by the exclusion of other i.e. renouncing one religion and adopting another.
    • There are various reasons for which people do convert their religion like:
    1. Voluntary Conversions i.e. conversions by free choice or because of change of beliefs.
    2. Forceful Conversions i.e. conversions by coercion, undue influence or inducement.
    3. Marital Conversions i.e. conversions due to marriage.
    4. Conversion for convenience i.e. social mobility

    Constitutional ambiguity over conversions

    • The question whether ‘right to convert’ comes under the ambit of ‘right to propagate any religion’ holds fundamental importance to determine the constitutionality of anti-conversion laws.
    • Article 25 talks about the term “propagate” which means to promote or transmit or merely a freedom of expression.

    Why is this getting prominence in India?

    Selective persecution and religious marginalization is often debated in India due to religious conversions for:

    1. Ghar Wapsi
    2. Inter-faith Marriages (often termed as Love Jihad)

    What about Incentivised Conversions?

    • There are many cases of incentivized conversions for the poor sections of society in exchange for a dignified social life.

    For them, the solution lies in addressing the root issues:

    1. Ending discrimination
    2. Providing high-quality and free education to the poor and disenfranchised
    3. Improving access and quality of free health facilities and medicines
    4. Improving nourishment and
    5. Providing adequate employment opportunities to all

    How has Parliament handled anti-conversion bills?

    After independence, Parliament introduced a number of anti-conversion bills which were not enacted for want of majority approval.

    • In post-Independent India, the first Indian Conversion (Regulation and Registration) Bill, 1954, which sought to enforce “licensing of missionaries and the registration of conversion.”
    • This was followed by the introduction of the Backward Communities (Religious Protection) Bill, 1960, “which aimed at checking conversion of Hindus to ‘non-Indian religions’.
    • Non-India religions included Islam, Christianity, Judaism and Zoroastrianism,.
    • The Freedom of Religion Bill in 1979, which sought “official curbs on inter-religious conversion.”

    Conclusion

    • Religious conversion gives new identity to the communities converted which in turn leads to social mobility.
    • Hence, anti-conversion amount to discrimination and a violation of the right to equality.
    • However, inter-faith marriages should not be pre-conditioned with religious conversion.
    • This certainly raises concerns for the majority of society.
    • Also mass conversions for the sake of revivalism should also not be promoted in any ways.

     

     

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  • OBC Sub-Categorization Panel’s Report in ‘Final Stages’

    After more than five years of its formation, the commission for the sub-categorization under Justice Rohini of the Other Backward Classes (OBC) is now in the final stages of finishing its task.

    Why in news?

    • The commission is expected to come up with a formula to further classify the nearly 3,000 caste groups and preparing a report on it.
    • This is perceived as crucial development before next Lok Sabha elections.

    OBCs and their sub-categorization

    • OBCs are granted 27% reservation in jobs and education under the central government.
    • In September 20202, a Constitution Bench of the Supreme Court reopened the legal debate on the sub-categorization of SCs and STs for reservations.
    • The debate arises out of the perception that only a few affluent communities among over 2,600 included in the Central List of OBCs have secured a major part of this 27% reservation.

    Need for sub-categorization

    • The argument for sub-categorization — or creating categories within OBCs for reservation — is that it would ensure “equitable distribution” of representation among all OBC communities.
    • To examine this, the Rohini Commission was constituted on October 2, 2017.
    • At that time, it was given 12 weeks to submit its report but has been given several extensions since, the latest one being the 10th.
    • Before the Rohini Commission was set up, the Centre had granted constitutional status to the National Commission for Backward Classes (NCBC).

    What are the Commission’s terms of reference?

    It was originally set up with three terms of reference:

    1. To examine the extent of inequitable distribution of benefits of reservation among the castes or communities included in the broad category of OBCs with reference to such classes included in the Central List;
    2. To work out the mechanism, criteria, norms and parameters in a scientific approach for sub-categorization within such OBCs;
    3. To take up the exercise of identifying the respective castes or communities or sub-castes or synonyms in the Central List of OBCs and classifying them into their respective sub-categories.

    The fourth term of reference was added on January 22, 2020, when the Cabinet granted it an extension:

    1. To study the various entries in the Central List of OBCs and recommend correction of any repetitions, ambiguities, inconsistencies and errors of spelling or transcription.

    Why so many extensions are being given?

    • This was added following a letter to the government from the Commission on July 30, 2019.
    • In process of preparing the sub-categorized central list of OBCs, the Commission has noted several ambiguities in the list as it stands now.
    • The Commission is of the opinion that these have to be clarified/rectified before the sub-categorized central list is prepared.

    What progress has it made so far?

    • In its letter to the government on July 30, 2019, the Commission wrote that it is ready with the draft report (on sub-categorization).
    • Following the latest term of reference given (on January 22, 2020) to the Commission, it is studying the list of communities in the central list.

    How smooth has its work been?

    • A hurdle for the Commission has been the absence of data for the population of various communities to compare with their representation in jobs and admissions.
    • On August 31, 2018, then Home Minister had announced that in Census 2021, data of OBCs will also be collected, but since then the government has been silent on this.
    • Many groups of OBCs have been demanding the enumeration of OBCs in the Census.

    What have its findings been so far?

    • In 2018, the Commission analyzed the data of 1.3 lakh central jobs given under OBC quota over the preceding five years and OBC admissions to central higher education institutions.
    • The findings were: 97% of all jobs and educational seats have gone to just 25% of all sub-castes classified as OBCs; 24.95% of these jobs and seats have gone to just 10 OBC communities.
    • 983 OBC communities — 37% of the total — have zero representation in jobs and educational institutions; 994 OBC sub-castes have a total representation of only 2.68% in recruitment and admissions.

     

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  • What is First Loss Default Guarantee (FLDG) System?

    Two months after the RBI issued guidelines on digital lending, banks, NBFCs and fintech players are still awaiting clarity on many aspects, including the First Loss Default Guarantee (FLDG) system.

    What is FLDG System?

    • FLDG is an arrangement between a fintech company and regulated entity (RE), including banks and non-banking finance companies, wherein the fintech compensates the RE to a certain extent if the borrower defaults.
    • Under this, the fintech originates a loan and promises to compensate the partners up to a pre-decided percentage in case customers fail to repay.
    • The bank/NBFC partners lend through the fintech but from their own books.
    • FLDG helps expand the customer base of traditional lenders but relies on the fintechs underwriting capabilities.
    • FLDG is also seen as a validation of the fintechs underwriting capabilities for loans disbursed.

    Issues with FLDGs

    • A report by an RBI-constituted working group on digital lending has laid down risks of FLDG agreements with unregulated entities.
    • The other concern is that FLDG costs are often passed on to customers.

     

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