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  • Who was Archbishop Desmond Tutu?

    Archbishop Desmond Tutu, Nobel Peace Prize laureate and veteran of South Africa’s struggle against white minority rule has died on December 26 at the age of 90.

    Try this question from CS Mains 2016:

     

    Q. The anti-colonial struggles in West Africa were led by the new elite of Western-educated Africans. Examine.

    Desmond Tutu (1931- 2021)

    • Tutu was a South African Anglican cleric who in 1984 received the Nobel Prize for Peace for his role in the opposition to apartheid in South Africa.
    • A decade later, he witnessed the ends of that regime and he chaired a Truth and Reconciliation Commission, set up to unearth atrocities committed during those dark days.
    • He was considered the nation’s conscience by both, the black majority and the white minority, an enduring testament to his faith and spirit of reconciliation in a divided nation.

    His notable works

    • During South Africa’s moves toward democracy in the early 1990s, Tutu propagated the idea of South Africa as “the Rainbow Nation”.
    • The term was intended to encapsulate the unity of multi-culturalism and the coming together of people of many different nations, in a country once identified with the strict division of white and black under the Apartheid regime.
    • In 1995 South African Pres. Nelson Mandela appointed Tutu head of the Truth and Reconciliation Commission, which investigated allegations of human rights abuses during the apartheid era.

     

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  • In news: Tai Khamti Rebellion

    The Arunachal Pradesh Deputy CM urged the Centre to recognize the Tai Khamti-British war as India’s first for independence.

    Tai Khamti Rebellion

    • The Tai Khamti Rebellion is the first such war took place in 1839 between the Tai Khamti people and the British.
    • The theatre of this war was some 2,400 km east of Meerut in Uttar Pradesh where the mutiny began.
    • Tai Khamtis resisted colonization by the British. Some 80 British soldiers, including Col. Adam White, were killed in the resultant conflict.

    Who are the Tai Khamti people?

    • The Tai Khamti people, who follow Theravada Buddhism, number a little more than 1,00,000 today and live in areas straddling Arunachal Pradesh and Assam.

    Other revolts in Arunachal

    • Arunachal Deputy CM also batted for recognition of battles between other communities of Arunachal Pradesh and the British.
    • They include a series of Anglo-Abor wars from 1858 to 1911 and the Wancho-British war in Tirap district’s Ninu in 1875.
    • The Abors, now called Adis, inhabit central Arunachal Pradesh, while the Wanchos live in the southern part of the State.

     

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  • [Sansad TV] Perspective: All India Judicial Service

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    Context

    • There were reports of the Centre renewing attempts to build consensus with state governments and High Courts on setting of the AIJS.
    • However the government recently informed Parliament that only 2 states – Haryana and Mizoram, and two high courts, Tripura High Court and Sikkim High Court, are in favour of creating the AIJS.
    • As per govt data on High Courts, 13 have opposed the proposal, six have sought changes in it and others have not responded.

    All India Judicial Service (AIJS): A backgrounder

    • The AIJS is a reform push to centralize the recruitment of judges.
    • It would work at the level of additional district judges and district judges for all states.
    • In the same way that the UPSC conducts a central recruitment process and assigns successful candidates to cadres, judges of the lower judiciary are proposed to be recruited centrally and assigned to states.

    This idea has been debated in legal circles for decades, and remains contentious.

    How are district judges currently recruited?

    • Articles 233 and 234: These articles deal with the appointment of district judges, and place it in the domain of the states.
    • State PSC: The selection process is conducted by the State Public Service Commissions and the concerned HC since HCs exercise jurisdiction over the subordinate judiciary in the state.
    • Interview by HC judges panelists: They interview candidates after the exam and select them for an appointment.

    Why has the AIJS been proposed?

    The idea was to ensure:

    • Efficient subordinate judiciary
    • Address structural issues such as varying pay and remuneration across states
    • Fill vacancies faster
    • Ensure standard training across states

    Beginning of the debate

    • The idea of a centralized judicial service was first proposed in the Law Commission 1958 ‘Report on Reforms on Judicial Administration’.
    • It was proposed again in the Law Commission Report of 1978, which discussed delays and arrears of cases in the lower courts.
    • In 2006, the Parliamentary Standing Committee backed the idea of a pan-Indian judicial service, and also prepared a draft Bill.

    What is the judiciary’s view on the AIJS?

    • 1992: the Supreme Court directed the Centre to set up an AIJS in All India Judges’ Assam. vs Union of India
    • 1993: In review of the judgment, the court left the Centre at liberty to take the initiative on the issue.
    • 2017: The Supreme Court took suo motu cognizance of the issue of appointment of district judges, and mooted a “Central Selection Mechanism”.

    Need for AJIS

    • Huge vacancy of judges and delay in recruitment: Currently there are about 5400 vacant posts in lower judiciary across the country and a pendency of 2.78crore cases in lower judiciary.
    • Dearth of good quality judicial officers: The ever continuing decline in their qualityhas led to decline in the competence of overall judiciary.
    • Lack of finances: State judicial services are not attractive for ‘best talents’ due to low salaries, rewards and compensations by the state governments.
    • Lack of specialized training: Adjudication is a specialization which requires state of the art training institutes and professors but state institutes don’t allow such exposure to interns.
    • Discretion of a narrow body: The process of selecting a good judge is a difficult job and should not be left at the discretion of few persons (collegiums) however sagacious they may be.
    • Subjectivity in the process: Current judicial appointments suffer subjectivity, corruption and nepotism on the part of Collegium.

    Critical views on AJIS

    • Blow to federalism: AJIS is seen as an affront to federalism and an encroachment on the powers of states granted by the Constitution.
    • Language of Business: Language and representation, for example, are key concerns highlighted by states. Judicial business is conducted in regional languages, whi ch could be affected by central recruitment.
    • Quotas: A “national exam” risks shutting out those from less privileged backgrounds from being able to enter the judicial services.
    • Separation of power: The opposition is also based on the constitutional concept of the separation of powers.
    • Not a complete remedy: Additionally, legal experts have argued that the creation of AIJS will not address the structural issues plaguing the lower judiciary.
    • Mismanaged legal education: Curriculum followed by law universities, overseen by Bar Council of India, lacks effective standards barring few National Law Universities.

    Other limitations of AJIS

    • Legacy issues unaddressed: AIJS addresses neither the problem of disproportionately low pay nor unavailability of adequate judicial infrastructure in states nor the lack of career advancement.
    • Problem of local laws and customs: AIJS does not take into account the problem of local laws, practices and customs which vary widely across States, thus increasing the costs of training for judges selected through the mechanism.
    • Unnecessary bureaucratization: The argument that the centralization of recruitment processes through the UPSC automatically leads to a more efficient recruitment process is flawed and not a guarantee of a solution.

    Why is the government seeking to revive the idea of AIJS?

    • The government has targeted the reform of the lower judiciary in its effort to improve India’s Ease of Doing Business ranking.
    • It will act as efficient dispute resolution is one of the key indices in determining the rank.
    • AIJS is a step in the direction of ensuring an efficient lower judiciary.

    Centre’s argument for AJIS

    • The government has cited IAS officers’ examples.
    • It has argued that if a central mechanism can work for administrative services — IAS officers learn the language required for their cadre — it can work for judicial services too.

    Way forward

    In its report on Strategy for New India @75 which defines objectives for 2022-23, Niti Aayog suggested that

    • An all-India judicial services examination on a ranking basis can be considered to maintain high standards in the judiciary
    • There is a need to facilitate the availability and usage of video-conferencing facilities to assist in speedy access to justice and to minimize logistical issues.
    • To maintain judicial independence, the cadre should report to the Chief Justice in each High Court.

    The Supreme Court has recently suggested the establishment of the National Judicial Infrastructure Corporation (NJIC)  for the modernization of judicial infrastructure. This is also another welcome move in reforming India Judiciary.

    Conclusion

    • If we want to create a robust judicial system at the subordinate level, the constitution of an Indian judicial service is a sound idea.
    • Only a meritocratic service with a competitive recruitment, high-quality uniform training and assured standards of probity and efficiency would be able to ensure speedy and impartial justice in India.

  • [pib] Centre declares Soya Meal as an Essential Commodity

    In a bid to cool down the domestic prices of Soya Meal, Government has notified order under the Essential Commodities Act to declare ‘Soya Meal’ as Essential Commodities under the Essential Commodities Act, 1955.

    Essential Commodities Act

    • The ECA, 1955 was established to ensure the delivery of certain commodities or products, the supply of which, if obstructed due to hoarding or black marketing, would affect the normal life of the people.
    • The list of items under the Act includes drugs, fertilizers, pulses, and edible oils, as well as petroleum and petroleum products.
    • The Centre can include new commodities as and when the need arises, and takes them off the list once the situation improves.
    • Additionally, the government can also fix the maximum retail price (MRP) of any packaged product that it declares an “essential commodity”.

    How ECA works?

    (1) Centre notifying stock limit holding

    • If the Centre finds that a certain commodity is in short supply and its price is spiking, it can notify stock-holding limits on it for a specified period.
    • The States act on this notification to specify limits and take steps to ensure that these are adhered to.
    • Anybody trading or dealing in the commodity, be it wholesalers, retailers or even importers are prevented from stockpiling it beyond a certain quantity.

    (2) States can opt-out

    • A State can, however, choose not to impose any restrictions.
    • But once it does, traders have to immediately sell into the market any stocks held beyond the mandated quantity.

    What happens for non-compliance?

    • As not all shopkeepers and traders comply, State agencies conduct raids to get everyone to toe the line and the errant are punished.
    • The excess stocks are auctioned or sold through fair price shops.
    • This improves supplies and brings down prices.

    Ex: The Union Government has brought masks and hand-sanitizers under the ECA to make sure that these products, key for preventing the spread of Covid-19 infection, are available to people at the right price and in the right quality. Later this move was reverted.

    What about Food Items?

    (1) Items covered:

    Rice, wheat, atta, gram dal, arhar dal, moong dal, urad dal, masoor, dal, tea, sugar, salt, Vanaspati, groundnut oil, mustard oil, milk, soya oil, palm oil, sunflower oil, gur, potato, onion and tomato.

    (2) Price Stabilization Fund (PSF):

    The government utilizes the buffer of agri-horticultural commodities like pulses, onion, etc. built under Price Stabilization Fund (PSF) to help moderate the volatility in prices.

    Recent amendments to the ECA

    In 2020, the EC Act was amended for the stock limit to be imposed only under exceptional circumstances such as famine or other calamities.

    • Exceptional circumstances: It allowed the centre to delist certain commodities as essential, allowing the government to regulate their supply and prices only in cases of war, famine, extraordinary price rises, or natural calamities.
    • Commodities de-regulated: The commodities that have been deregulated are food items, including cereals, pulses, potatoes, onion, edible oilseeds, and oils.

    Exceptions provided:

    • The government regulation of stocks will be based on rising prices, and can only be imposed if there is
    1. A 100% increase in retail price in the case of horticultural produce and
    2. A 50% increase in retail price in the case of non-perishable agricultural food items
    • These restrictions will not apply to stocks of food held for public distribution in India.

     

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  • What is Tokenization of Debit and Credit Cards?

    The Reserve Bank of India (RBI) has decided to defer the implementation of tokenization of debit and credit cards for online transactions by a further six months following representations from stakeholders.

    RBI decision

    • RBI has also extended tokenization of Card-on-File (CoF) transactions where card details are saved by merchants — and directed the merchants not to store card details in their systems from January 1, 2022.
    • A CoF transaction is one in which a cardholder has authorized a merchant to store his or her Mastercard or Visa payment details, and to bill the stored account.
    • E-commerce companies and airlines and supermarket chains often store card details.

    What is Tokenisation?

    • Tokenisation refers to the replacement of credit and debit card details with an alternative code called a ‘token’.
    • This token is unique for a combination of card, token requestor (the entity that accepts a request from the customer for tokenisation of a card and passes it on to the card network to issue a token) and the device.

    Benefits of Tokenization

    • Transaction safety: Tokenization reduces the chances of fraud arising from sharing card details.
    • Easy payments: The token is used to perform contactless card transactions at point-of-sale (PoS) terminals and QR code payments.
    • Data storage: Only card networks and card-issuing banks will have access to and can store any card data.

    How are the transactions currently processed?

    • There are many players involved in processing one card transaction today:
    1. Merchant
    2. Payment aggregator
    3. Issuing bank
    4. Card network
    • When a transaction happens on a merchant platform, the data is sent to the payment aggregator (PA).
    • The PA next sends the details to either the issuing bank or the card network.
    • Then issuing bank sends an OTP and the transaction flows back.

    Which companies dominate card transactions in India?

    Is the industry ready to implement this?

    • Not fully, that is why the RBI had to extend the deadline.
    • The industry currently can convert CoF into a tokenized number. However, the readiness to process the token is negligible.
    • About 90% of banks are ready with provisioning of token on Visa. Only 25-30% banks are ready on Mastercard.

    Impact on businesses

    If the industry isn’t ready, several business models would be impacted.

    • E-mandates (recurring payments) will stand ineffective from 1 July.
    • Card EMIs account for 25% of online e-commerce sales. That option will no longer be available.
    • Cashbacks/discount offers by banks will be impacted, too.
    • A user may not be able to use Mastercard saved cards on a merchant platform to make a transaction and will have to enter the card details every time a transaction is made.
    • This could be the same for some Visa cards.

    Way forward

    • The new system is a much bigger disruption to the way digital payments will henceforth be processed.
    • Integration of systems and the ability to process is one part.
    • The industry also needs to test the performance and success rate of the tokenization solution.

     

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  • Maharashtra govt.’s Shakti Bill

    The Maharashtra government’s Shakti Criminal Laws (Maharashtra Amendment) Bill, 2020, on crimes against women and children has recommended capital punishment in rape cases.

    Why have stringent laws have consistently failed to instill any fear in rapists? Discuss.

    Shakti Act: Key Provisions

    • Capital punishment: It proposes stringent punishment including the death penalty and heavy fines for the culprits.
    • Fast-track trial: Special police teams and separate courts will be set up for investigation and trial of cases against women and children.
    • Jail term: The perpetrators if found guilty will be punished with imprisonment for life for not less than ten years but may extend to the remainder of natural life or with death in cases which have characteristics of being heinous in nature.
    • Compensation: A sum of Rs 10 lakh will be given to an acid attack victim for plastic surgery and facial reconstruction and the amount will be collected as fine from the convict.
    • Rapid investigation: The investigation shall be completed within a period of 15 working days from the date of registration of an offence. This can be extended by 7 days.
    • In-camera investigation: Some cases will be tried in-camera for the recording of evidence of victims and witnesses who are vulnerable.

    Why in news?

    (1) Covering acid-attacks

    • Politicians in Maharashtra have recommended increasing the quantum of punishment for acid attack cases under section 326A of IPC to at least 15 years that may extend to the remainder of a convict’s natural life.
    • The expenditure of plastic surgery and face reconstruction operations for the victim will be taken care of from the monetary fine to be charged on the accused.

    (2) Social media accountability

    • The panel has also increased the punishment under the IPC section 175A for failure to share data for probe by social media platforms, internet providers.
    • Also, under Pocso Act, the data must be within three days at the pain of penalty.

    (3) Curb on false complaints

    • Punishment will be increased for false complaints and for giving wrong information to a public servant.
    • The provisions under the bill are being made more stringent to punish the culprits and set deterrence.
    • However, it is also necessary that the innocent are saved and so severe punishment is required against people filing false or wrongful complaints.
    • The committee has also scrapped the provision of not giving anticipatory bail to people making wrongful or false complaints.

    (4) Covering trans-persons

    • Under section 354E, which provides for punishment for any act of intimidating woman and insulting her modesty, the category of offenders has been increased to cover men, women and even transgender persons.

    Limitations of stringent laws

    • Despite several laws, incidences of rapes continue unabated.
    • In fact, now we hear cases of extreme brutality.
    • The general perception is that since the laws have been made more stringent, so the rapists resort to extreme measures in a bid to destroy the evidence.

    Way forward

    • What we need is better policing, making public spaces safer for women, ensuring round-the-clock surveillance of isolated areas, and deployment of police at all strategic points.
    • Prevention and not punishment is the solution and that requires concerted efforts on part of all the stakeholders.
    • It is not harsher punishments that will deter. It is the fear of being caught and not being spared.

     

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  • Who was P.N. Panicker?

    The President of India has recently unveiled the statue of Shri P.N. Panicker at Poojappura, Thiruvananthapuram.

    P.N. Panicker (1909-1995)

    • Puthuvayil Narayana Panicker is known as the Father of the Library Movement of Kerala.
    • June 19, his death anniversary, has been observed in Kerala as Vayanadinam (Reading Day) since 1996.
    • In 2017, PM has declared June 19, Kerala’s Reading Day, as National Reading Day in India.
    • The following month is also observed as National Reading Month in India

    Contributions

    • Panicker led the formation of Thiruvithaamkoor Granthasala Sangham (Travancore Library Association) in 1945 with 47 rural libraries.
    • The slogan of the organization was ‘Read and Grow’.
    • Later on, with the formation of Kerala State in 1956, it became Kerala Granthasala Sangham (KGS).
    • He traveled to the villages of Kerala proclaiming the value of reading.
    • Grandhasala Sangham won the ‘Krupsakaya Award’ from UNESCO in 1975.
    • It became the Kerala State Library Council, with an in-built democratic structure and funding.

     

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  • Karnataka’s Anti-Conversion Legislation

    Amid opposition, the Karnataka Protection of Right to Freedom of Religion Bill, 2021, was introduced in the Assembly.

    What is the Bill about?

    • The Bill envisages stringent provisions for forced or induced conversions.
    • The government wants to prohibit conversion by:
    1. Misrepresentation
    2. Force
    3. Allurement
    4. Fraudulent means
    5. Marriage
    6. Coercion and undue influence

    Key features of the Bill

    (1) Filing of Complaints

    • Complaints of conversions can be filed by family members of a person who is getting converted, or any other person who is related to the person who is getting converted, or any person associated with the person getting converted.

    (2) Punishment and fines

    • The offense of conversion is cognisable and non-bailable and will attract a jail term of three to five years and a fine of ₹25,000 for people found violating the law.
    • There is a jail term of three to 10 years, and a fine of ₹50,000 for people converting minors, women and persons from the SC and ST communities.
    • The Bill also envisages a compensation of ₹5 lakh to victims of forced conversions.

    Do you know?

    Odisha was the first State to enact anti-conversion legislation, the Orissa Freedom of Religion Act, 1967. Madhya Pradesh enacted the same the following year.

    What about willful conversion?

    • Prior information: After the law comes into force, any person intending to convert to another religion will have to inform the district magistrate at least thirty days in advance.
    • Due inquiry of purpose: The person executing the conversion must also give a notice one month in advance, following which an inquiry will be conducted by the district magistrate through the police to establish the real intent of conversion.
    • Defying the conversion: Not informing the district magistrate will lead to the conversion being declared null and void.

    Impact of non-conformance

    • Not informing authorities will carry a prison term of six months to three years for persons who are converted and one year to five years for the persons carrying out the conversions.
    • After getting converted, the person has to again inform the district magistrate within 30 days after conversion and must appear before the district magistrate to confirm his/her identity.

    What happens once the Conversion is held valid?

    • Post conversion, the district magistrate has to inform revenue authorities, the social welfare, minority, backward classes and other departments of the conversion.
    • These authorities will, in turn, take steps with respect to the entitlements of the person in terms of reservations and other benefits.

    How many states have enacted the legislation?

    • Arunachal Pradesh, Chhattisgarh, Gujarat, Himachal Pradesh, Jharkhand, Madhya Pradesh, Odisha, Uttar Pradesh and Uttarakhand have laws restricting religious conversion.
    • Penalties for breaching the laws can range from monetary fines to imprisonment, with punishments ranging from one to three years of imprisonment and fines from ₹5,000 to ₹50,000.
    • Some of the laws provide for stiffer penalties if women, children, or members of Scheduled Castes or Scheduled Tribes (SC/ST) are being converted.
    • Some other States, including Manipur, are reportedly “considering similar laws.”

    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.”

    Religious conversion: A Constitutionality check

    • Indian Constitution aspires toward tolerance of all religions and guaranteed that each person was “equally entitled to freedom of conscience and the right to freely profess, practice and propagate religion” (Article 25).
    • This formulation did not come without dispute; the word “propagate” was one of the most contested in the whole of Indian Constitution.

    Core issue: Prevalence of Inter-faith Marriage

    • India has the Special Marriage Act, 1954, which can be used by inter-faith/inter-community couples to get married.
    • The Act, however, requires an advance notice of 30 days to the magistrate before a couple is able to register their marriage.
    • When the parties are from different faiths, communities or castes, such a public notice can be, and has been, a great source of danger and harm from their family/community members.
    • Consequently, the only option exercised by the inter-faith couples is for one of them to convert to the religion of the other and get married.

    Issues with such laws

    The anti-conversion laws have been challenged on the ground that innocent persons were being booked under these Acts.

    • Patriarchal dominance: It is widely presumed that such conversions involve ‘coercion’ or ‘deceit’, and hence, Hindu women ought to be ‘protected’ from the danger of conversion.
    • Targeting minorities: These laws target Muslims and quoted instances of such inter-faith couples having been harassed by militant activists and state government authorities.
    • Freedom of Conscience: Women, it is clear, are being treated in a paternalistic way which assumes that they need protection at the cost of their right to make reasoned decisions about changing faith or choosing a friend or life partner.

    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

    Conclusion

    • Clearly, anti-conversion laws 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.
    • Instead of pursuing this disastrous course, the government could work towards removing impediments to inter-faith marriages and eradicating the social stigma attached to such marriages.
    • The couples who wish to enter into an inter-faith alliance are enabled and protected.

     

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  • RBI proposes new norms for Capital Requirement for Banks

    The Reserve Bank of India (RBI) has proposed to replace existing approaches for measuring minimum operational risk capital requirements of banks with a new Basel-III standardized approach.

    What are Capital Requirements of a Bank?

    • Capital requirements are standardized regulations in place for banks and other depository institutions that determine how much liquid capital must be held of a certain level of their assets.
    • They are set to ensure that banks and depository institutions’ holdings are not dominated by investments that increase the risk of default.
    • They also ensure that banks and depository institutions have enough capital to sustain operating losses (OL) while still honoring withdrawals.

    Why need such a requirement?

    • An angry public and uneasy investment climate usually prove to be the catalysts for capital requirements provisions.
    • This is essential when irresponsible financial behavior by large institutions is seen as the culprit behind a financial crisis, market crash, or recession.

    What are the risks for a Bank?

    There are many types of risks that banks face.

    • Credit risk
    • Market risk
    • Operational risk
    • Liquidity risk
    • Business risk
    • Reputational risk
    • Systemic risk
    • Moral hazard

     What is Operational Risk?

    • ‘Operational risk’ refers to the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
    • This has been defined by the Basel Committee on Banking Supervision I as the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events.
    • This definition includes legal risk, but excludes strategic and reputational risk.

    Pros of Capital Requirements

    • Ensure banks stay solvent, avoid default
    • Ensure depositors have access to funds
    • Set industry standards
    • Provide way to compare, evaluate institutions

    Unwanted consequences of such move

    • Raise costs for banks and eventually consumers
    • Inhibit banks’ ability to invest
    • Reduce availability of credit, loans

    Back2Basics: Basel Accords

    • They refer to the banking supervision Accords (recommendations on banking regulations)—Basel I, Basel II and Basel III—issued by the Basel Committee on Banking Supervision (BCBS).
    • They are called the Basel Accords as the BCBS maintains its secretariat at the Bank for International Settlements in Basel, Switzerland and the committee normally meets there.
    • These are a set of recommendations for regulations in the banking industry.
    • India has accepted Basel accords for the banking system.

    Let’s revise them:

    [1] Basel I

    • In 1988, BCBS introduced capital measurement system called Basel capital accord, also called as Basel 1.
    • It focused almost entirely on credit risk. It defined capital and structure of risk weights for banks.
    • The minimum capital requirement was fixed at 8% of risk-weighted assets (RWA).
    • RWA means assets with different risk profiles.
    • For example, an asset backed by collateral would carry lesser risks as compared to personal loans, which have no collateral. India adopted Basel 1 guidelines in 1999.

    [2] Basel II

    • In June ’04, Basel II guidelines were published by BCBS, which were considered to be the refined and reformed versions of Basel I accord.
    • The guidelines were based on three parameters, which the committee calls it as pillars:
    • Capital Adequacy Requirements: Banks should maintain a minimum capital adequacy requirement of 8% of risk assets.
    • Supervisory Review: According to this, banks were needed to develop and use better risk management techniques in monitoring and managing all the three types of risks that a bank faces, viz. credit, market and operational risks.
    • Market Discipline: This need increased disclosure requirements. Banks need to mandatorily disclose their CAR, risk exposure, etc to the central bank. Basel II norms in India and overseas are yet to be fully implemented.

    [3] Basel III

    • In 2010, Basel III guidelines were released. These guidelines were introduced in response to the financial crisis of 2008.
    • A need was felt to further strengthen the system as banks in the developed economies were under-capitalized, over-leveraged and had a greater reliance on short-term funding.
    • Also the quantity and quality of capital under Basel II were deemed insufficient to contain any further risk.
    • Basel III norms aim at making most banking activities such as their trading book activities more capital-intensive.
    • The guidelines aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage, funding and liquidity.

     

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  • Indian Army inducts Armoured Engineer Reconnaissance Vehicle (AERV)

    The first batch of next-generation indigenously designed Armoured Engineer Reconnaissance Vehicles (AERV) was inducted by the Indian Army.

    About AERV

    • AERV is indigenously designed and developed by DRDO and manufactured by the Pune unit of Bharat Electronics Limited.
    • It has more than 90% indigenous content.
    • It is a versatile BMP-IIK amphibious Infantry Combat Vehicle (ICV) fitted with instruments for water reconnaissance, land reconnaissance, navigation, and data backup.

    Unique capabilities of AERV

    • AERV is capable of measuring soil bearing capacity on riverbanks.
    • It works to determine if they are motorable for military vehicles on Go-No Go basis (critical parameters for bridge laying), dry and wet gaps in day and night conditions, slopes and height of river banks or canals.”
    • AERVs can navigate terrain using Military Grid Coordinate System, measure and plot underwater beds and water currents of rivers or canals.
    • They can store data from various instruments on Control Console for further analysis and decision-making.

     

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