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  • Medical Education Governance in India

    Issues related to Nursing Sector in India

    The year 2020 has been designated as “International Year of the Nurse and the Midwife”.

    But the nursing education in India displays a grim situation. It suffers poor quality of training, inequitable distribution, and non-standardized practices.

    Nursing sector in India

    • Nurses and midwives will be central to achieving universal health coverage in India.
    • India’s nursing workforce is about two-thirds of its health workforce. Its ratio of 7 nurses per 1,000 population is 43% less than the World Health Organization norm; it needs 2.4 million nurses to meet the norm.
    • The sector is dogged by structural challenges that lead to poor quality of training, inequitable distribution, and non-standardized practices.

    Uneven regulation

    Nursing education in India has a wide array of certificate, diploma, and degree programmes for clinical and non-clinical nursing roles.

    • The Indian Nursing Council regulates nursing education through prescription, inspection, examination, and certification. 91% of the nursing education institutions are private and weakly regulated. The quality of training of nurses is diminished by the uneven and weak regulation.
    • The current nursing education is outdated and fails to cater to the practice needs. The education, including re-training, is not linked to the roles and their career progression in the nursing practice.
    • There are insufficient postgraduate courses to develop skills in specialities and address critical faculty shortages both in terms of quality and quantity.
    • These factors have led to gaps in skills and competencies, with no clear career trajectory for nurses.
    • Multiple entries point to the nursing courses and lack of integration of the diploma and degree courses diminish the quality of training.
    • A common entrance exam, a national licence exit exam for entry into practice, and periodic renewal of licence linked with continuing nursing education would significantly streamline and strengthen nursing education.
    • Transparent accreditation, benchmarking, and ranking of nursing institutions too would improve the quality.
    • The number of nursing education institutions has been increasing steadily but there are vast inequities in their distribution. Around 62% of them are situated in southern India.
    • There is little demand for postgraduate courses. Recognizing the need for speciality courses in clinical nursing 12 PG diploma courses were rolled out but the higher education qualification is not recognized by the recruiters.
    • The faculty positions vacant in nursing college and schools are around 86% and 80%, respectively.

    Gaps in education, services

    • There is a lack of job differentiation between diploma, graduate, and postgraduate nurses regarding their pay, parity, and promotion.
    • The higher qualifications are underutilized, leading to low demand for postgraduate courses.
    • Those with advanced degrees seek employment in educational institutions or migrate abroad which has led to an acute dearth of qualified nurses in the country.
    • Small private institutions with less than 50 beds recruit candidates without formal nursing education. They are offered courses of three to six months for non-clinical ancillary nursing roles and are paid very little.
    • The Indian Nursing Act primarily revolves around nursing education and does not provide any policy guidance about the roles and responsibilities of nurses in various cadres.
    • Nurses in India have no guidelines on the scope of their practice and have no prescribed standards of care and is a major reason for the low legitimacy of the nursing practice and the profession. This may endanger patient safety.
    • The Consumer Protection Act holds only the doctor and the hospital liable for medico-legal issues; nurses are out of the purview of the Act. This is contrary to the practices in developed countries where nurses are legally liable for errors in their work.

    Institutional reforms required

    1. The governance of nursing education and practice must be clarified and made current.
    2. The Indian Nursing Council Act of 1947must be amended to explicitly state clear norms for service and patient care, fix the nurse to patient ratio, staffing norms and salaries.
    3. The jurisdictions of the Indian Nursing Council and the State nursing councils must be explained and coordinated so that they are synergistic.
    4. Incentives to pursue advanced degrees to match their qualification, clear career paths, the opportunity for leadership roles, and improvements in the status of nursing as a profession should be done.
    5. A live registry of nurses, positions, and opportunities should be a top priority to tackle the demand-supply gap in this sector.
    6. The public-private partnership between private nursing schools/colleges and public health facilities is another strategy to enhance nursing education. NITI Aayog has recently formulated a framework to develop a model agreement for nursing education.
    7. The Government has also announced supporting such projects through a Viability Gap Funding.

    Practice Question:

    Q. Discuss the various issues related to nursing sector in India and measures to be taken to address them.

    A Bill that could spell hope

    • The disabling environment prevalent in the system has led to the low status of nurses in the hierarchy of health-care professionals. In fact, nursing has lost the appeal as a career option.
    • The National Nursing and Midwifery Commission Bill currently under consideration should hopefully address some of the issues highlighted.
    • These disruptions are more relevant than ever in the face of the COVID-19 pandemic.
  • Agricultural Sector and Marketing Reforms – eNAM, Model APMC Act, Eco Survey Reco, etc.

    The roots of the agricultural crisis run deep

    The standoff between farmers and the government continues even after a few rounds of discussion.

    Un-timely reforms

    • Currently, the country was struggling with novel coronavirus-caused lockdowns, supply disruptions, job losses and falling incomes in an economy.
    • The reforms embedded in the three Acts are unlikely to help resolve the structural issues facing Indian agriculture, even their withdrawal is unlikely to change the ground reality.

    Farmers protest continues

    • The immediate trigger for the current protests is the enactment of the three Acts, on agricultural marketing, contract farming and stocking of agricultural produce, which deregulates the existing Acts on these.
    • Farmer unions have rejected the proposal and continue to demand complete withdrawal of the three Acts along with making MSP a guarantee.

    Government for negotiations

    • The latest proposal by the government indicates its willingness to amend the three agriculture-related Acts passed in September.
    • The government has proposed amendments which will empower the States to frame rules the contentious issues of registration of private traders, levy of taxes on trade outside the Agricultural Produce Market Committee (APMC) mandis.
    • Similar assurances have been given on access to the judiciary for dispute resolution and continuation of the Minimum Support Price (MSP) mechanism.

    Many protests, one thread

    • The last four years have seen a series of large protests in most of the States.
    • For example, a group of farmers from Tamil Nadu camped in Delhi for over 100 days, Maharashtra was witness to the ‘Kisan Long March’ of farmers on more than one occasion, protests erupted in Rajasthan, UP, Haryana and MP.
    • The latest round of protests may have seen spirited protests from farmers from Punjab and Haryana but has found the support of farmers from the other States as well.
    • The common thread in all these protests — of declining agricultural incomes, stagnant wages and withdrawal of state support to agriculture.

    Changing faces of agriculture

    • The real issue is the lack of remunerative prices for a majority of agricultural commodities, a sharp increase in price variability in recent years, and an unpredictable and arbitrary government policy regime.
    • The other major problem is the changing nature of agriculture which has seen increased dependence on markets, increasing mechanization along with increasing monetization of the agrarian economy.
    • The increased dependence on markets has contributed to increasing variability in output prices.
    • Limited government intervention in protecting farmers’ income and stabilizing prices through MSP-led procurement operations made the increased variability in frequency as well as its spread.
    • Other than rice and wheat — and to some sporadic instances, of pulses — most crops suffer from inadequate intervention from MSP operations.
    • Even these procurement operations are unable to stabilize prices with falling demand and a slowing economy. For example, wheat has seen a steady decline in year-on-year inflation based on Wholesale Price Index (WPI).
    • Uneven nature of procurement in some states is also responsible to arrest the decline in prices. Crops like paddy, maize have seen in many States significantly lower market prices than the MSP.

    Factors behind vulnerability

    • Increasing mechanization and monetization have led to an increase in the cash requirement.
    • Most of these are met by non-institutional sources including middlemen which have contributed to the rising cost of cultivation and an increase in loan defaults.
    • The demand for loan waivers is unlikely to subside with the rising cost of inputs.
    • These trends have accentuated after 2010-11 when the Nutrient Based Subsidy (NBS) for fertilizers regime led to an increase in fertilizer prices.
    • The withdrawal of diesel subsidy and a rise in electricity prices also contributed to making agriculture unviable.
    • The government has declined the agricultural investment in the first four years which resulted in rising input costs and falling output prices.
    • The shocks of demonetization and the lockdown only increased the uncertainty and vulnerability in the agricultural sector both on input and output prices.

    What lies ahead?

    • The demand for making MSP a guarantee for private trade is meaningless if the government is unable to ensure procurement for a majority of the 23 crops for which it announces MSP.
    • Thus, the withdrawal of the three Acts by the government will only seem to offer a temporary truce.

    Policy overhaul needed

    • The existing policy framework with an excessive focus on inflation management and obsession with the fiscal deficit will likely lead to lower support from the government either in price stabilization or reduction in the cost of cultivation through fiscal spending.
    • The agricultural sector needs a comprehensive policy overhaul to recognize the new challenges of agriculture which are diversifying and getting integrated with the non-agricultural sector.
    • This not only entails a better understanding of the structural issues but also innovative thinking to protect farmers’ livelihood from the uncertainty of these changes.
    • Above all, it requires financial support and institutional structures to support the agricultural sector and protect it. Only this can lead to the government’s dream of doubling the farmers’ income.
  • Innovations in Biotechnology and Medical Sciences

    Hydroponics: the art of soil-less farming

    This newscard is an excerpt from the original article published in TH.

    Many questions related to agricultural techniques are being asked in the Prelims. UPSC has done away with traditional crop-related questions for the past two years. 

    For example, see this question from CSP 2020:

    Q.What are the advantages of fertigation in agriculture?

    1. Controlling the alkalinity of irrigation water is possible.
      2. Efficient application of Rock Phosphate and all other phosphatic fertilizers is possible.
      3. Increased availability of nutrients to plants is possible.
      4. Reduction in the leaching of chemical nutrients is possible.

    Select the correct answer using the code given below:
    (a) 1, 2 and 3 only

    (b) 1,2 and 4 only

    (c) 1,3 and 4 only

    (d) 2, 3 and 4 only

    What is hydroponics?

    Hydroponics is the cultivation of plants without using soil.

    • Hydroponic flowers, herbs, and vegetables are planted in inert growing media and supplied with nutrient-rich solutions, oxygen, and water.
    • This system fosters rapid growth, stronger yields, and superior quality.
    • When a plant is grown in soil, its roots are perpetually searching for the necessary nutrition to support the plant.
    • If a plant’s root system is exposed directly to water and nutrition, the plant does not have to exert any energy in sustaining itself.
    • The energy the roots would have expended acquiring food and water can be redirected into the plant’s maturation. As a result, leaf growth flourishes as does the blooming of fruits and flowers.

    Why Hydroponics?

    • Plants sustain themselves by a process called photosynthesis. But they do not need soil to photosynthesize.
    • They need the soil to supply them with water and nutrients.
    • When nutrients are dissolved in water they can be applied directly to the plant’s root system by flooding, misting, or immersion.
    • Hydroponic innovations have proven direct exposure to nutrient-filled water can be a more effective and versatile method of growth than traditional irrigation.

    How does hydroponics work?

    • Hydroponic systems work by allowing minute control over environmental conditions like temperature and pH balance and maximized exposure to nutrients and water.
    • It administers nutrient solutions tailored to the needs of the particular plant being grown.
    • They allow you to control exactly how much light the plants receive and for how long.
    • pH levels can be monitored and adjusted. In a highly customized and controlled environment, plant growth accelerates.

    Components of Hydroponics

    To maintain a flourishing hydroponic system, we need to become acquainted with a few components that make it run efficiently.

    (1) Growing media

    • Hydroponic plants are often grown in inert media that support the plant’s weight and anchor its root structure.
    • Growing media is the substitute for soil, however, it does not provide any independent nutrition to the plant.
    • Instead, this porous media retains moisture and nutrients from the nutrient solution which it then delivers to the plant.

    (2) Air stones and air pumps

    • Plants that are submerged in water can quickly drown if the water is not sufficiently aerated. Air stones disperse tiny bubbles of dissolved oxygen throughout your nutrient solution reservoir.
    • These bubbles also help evenly distribute the dissolved nutrients in the solution. Air stones do not generate oxygen on their own.
    • They need to be attached to an external air pump via opaque food grade plastic tubing

    (3) Net pots

    • Net pots are mesh planters that hold hydroponic plants. The latticed material allows roots to grow out of the sides and bottom of the pot, giving greater exposure to oxygen and nutrients.
    • Net pots also provide superior drainage compared to traditional clay or plastic pots.

    Benefits

    By controlling the environment of the plant in hydroponics, many risk factors are reduced:

    • Plants grown in gardens and fields are introduced to a host of variables that negatively impact their health and growth. Fungus in the soil can spread diseases to plants.
    • Wildlife like rabbits can plunder ripening vegetables from your garden.
    • Pests like locusts can descend on crops and obliterate them in an afternoon. Hydroponic systems end the unpredictability of growing plants outdoors and in the earth.
    • Without the mechanical resistance of the soil, seedlings can mature much faster.
    • By eliminating pesticides, hydroponics produces much healthier and high-quality fruits and vegetables. Without obstacles, plants are free to grow vigorously and rapidly.

    Various limitations

    • A hydroponic system isn’t cheap
    • Constant monitoring is required
    • Micro-organisms that are water-based can creep in rather easily
    • Growing a hydroponic garden demands an expertise
    • Production is limited compared to field conditions
    • If a disease appears, all plants in the system will be affected
    • Without soil to serve as a buffer if the system fails plant death will occur rapidly
  • Forest Conservation Efforts – NFP, Western Ghats, etc.

    Shola Sky Islands of the Western Ghats

    Tropical montane grasslands (TMG) in the Shola Sky Islands of the Western Ghats have suffered big losses due to invasions by exotic trees.

    Try this PYQ:

    Q.In India, which type of forest among the following occupies the largest area?
    (a) Montane Wet Temperate Forest
    (b) Sub – tropical Dry Evergreen Forest
    (c) Tropical Moist Deciduous Forest
    (d) Tropical Wet Evergreen Forest

    Sky Islands

    • “Sky islands” are the tops of tall mountains that become environmentally isolated from each other even if they are close together, geographically speaking.
    • The Western Ghats are a mountain chain in southwest India home to spectacular and unique sky islands.
    • The peaks of the Western Ghats, ranging between 3,000 and 8,500 feet above sea level, host an almost unbelievable array of microclimates, looking like “patches of forests floating in a sea of grasslands.

    What are TMGs?

    • TMG are high elevation grasslands forming only 2% of all grasslands in the world.
    • Among their functions is regulating the global carbon cycle and serving as a source of water to downstream communities.
    • Researchers say grasslands do not benefit from conservation and restoration efforts afforded to tropical montane forests, possibly due to limited information.

    Treasures of Shola

    • One of the specific habitats unique to the sky islands of this area is a type of low-temperature, high-humidity tropical cloud forest full of stunted trees mixed with grasslands called the Shola.
    • The Shola forests of South derive their name from the Tamil word solai, which means a ‘tropical rain forest’.
    • Classified as ‘Southern Montane Wet Temperate Forest’ the Sholas are found in the upper reaches of the Nilgiris, Anamalais, Palni hills, Kalakadu, Mundanthurai and Kanyakumari in the states of Tamil Nadu and Kerala.
    • These forests are found sheltered in valleys with sufficient moisture and proper drainage, at an altitude of more than 1,500 metres.

    Various threats to them

    • Loss of grasslands due to invasive exotic trees is a “novel threat” through the establishment and expansion of exotic tree plantations.
    • These exotic trees include acacias, pines and eucalyptus, shrinking the range sizes of endemic species, including plants, birds, amphibians and mammals.
    • In the Western Ghats, 23% of montane grasslands were reportedly converted into invasive exotic tree cover over a period of 44 years.
    • Attempts to manage invasive exotic trees in montane grasslands incorporated approaches that include prevention and mechanical, chemical and biological control.
    • For invasive species such as Acacia mearnsii that grow rapidly and disperse seeds widely, removing mature trees is often ineffective.
  • Innovations in Biotechnology and Medical Sciences

    How epigenetics alters inherited genetics’ message

    Researchers have found the cause of vision impairment due to ageing as the accumulation of “epigenetic noise” that disrupts gene expression patterns leading to changes in inherent DNA function

    Genetics is an all-time favourite of UPSC. Every year you can find a question in prelims. Try this one from CSP 2020:

     

    Q.Consider the following statements:

    1. Genetic changes can be introduced in the cells that produce eggs or sperms of a prospective parent
    2. A person’s genome can be edited before birth at the early embryonic stage.
    3. Human-induced pluripotent stem cells can be injected into the embryo of a pig.

    Which of the statements given above is/are correct?

    (a) 1 only

    (b) 2 and 3 only

    (c) 2 only

    (d) 1, 2 and 3

    What is Epigenetics?

    • Epigenetics is the study of how your behaviours and environment can cause changes that affect the way your genes work.
    • Unlike genetic changes, epigenetic changes are reversible and do not change your DNA sequence, but they can change how your body reads a DNA sequence.
    • Environmental stimuli can cause genes to be turned off or turned on.
    • This determines a cell’s specialization (e.g., skin cell, blood cell, hair cell, liver cells, etc.) as a fetus develops into a baby through gene expression (active) or silencing (dormant); and nurture.
    • This normal epigenetic control on our genes can get altered during normal ageing, stress and disease conditions.

    Cellular regulators

    • The functioning of cells and tissues in our body are controlled by thousands of proteins that regulate various cellular functions.
    • These proteins are in turn encoded by the respective genes which are a part of our genome or the cellular DNA.
    • Any minor or major changes to our inherited DNA (addition or mutation) can result in altered protein production, which in turn leads to defective cellular functions.
    • This forms the basis for many heritable genetic disorders affecting mankind.

    A trigger for various inactivities

    • Apart from DNA or protein sequence level alterations, there are other biochemical changes that influence and dictate if a gene should be active or inactive in a given cell type.
    • For example, the gene that encodes for the insulin protein is present in the exact form, in every cell of the body.
    • However, it is allowed to express only in the insulin-secreting beta cells of the pancreas and is kept inactive in the rest of the cells of the body.
    • This phenomenon is tightly regulated by a combination of regulatory proteins that changes the expressivity of the gene.
    • Also, the histone proteins that bind the DNA and help to compactly wrap it inside the chromosomes can undergo chemical modifications such as methylations and acetylations on different lysine amino acids within the protein.
    • These modifications both on the DNA and its associated proteins alter the chromosomal conformations and regulate gene expression.
    • These changes can either unwind the DNA and allow gene expression or can compact the DNA and render the genes in the region inactive or silent.

    Epigenetics and the human eye

    • The human (and mammalian) eye is a remarkable organ in the course of evolution which has allowed us to “see” the external world clearly and in colour.
    • Earlier forms, such as microbes and plants, reacted to light in other ways (for absorption and use, such as photosynthesis).
    • The front part of the human eye (cornea, lens and the vitreous humour gel) is transparent, colourless and helps focus the incoming light into the retina, helping us see colour.
    • It is the retina that sends the message to the brain.
    • Its main component, called the retinal ganglion cells (RGC) are the ones that help in this process of sending the message in the form of electrical signals, called neurons or nerve cells.
    • Thus, RGCs are the ones that convert optics into electronics.
  • Mother and Child Health – Immunization Program, BPBB, PMJSY, PMMSY, etc.

    Matru Sahyogini Samitis Scheme

    The MP government has issued an order for the appointment of committees led by mothers to ensure better monitoring of services delivered at Anganwadi or day-care centres across the State.

    Try this PYQ:

    Q.Which of the following are the objectives of ‘National Nutrition Mission’?

    1. To create awareness relating to malnutrition among pregnant women and lactating mothers.
    2. To reduce the incidence of anaemia among young children, adolescent girls and women.
    3. To promote the consumption of millets, coarse cereals and unpolished rice.
    4. To promote the consumption of poultry eggs.

    Select the correct answer using the code given below:

    (a) 1 and 2 only

    (b) 1, 2 and 3 only

    (c) 1, 2 and 4 only

    (d) 3 and 4 only

    Matru Sahyogini Samitis

    • Called ‘Matru Sahyogini Samiti’ or Mothers’ Cooperation Committees, these will comprise 10 mothers at each Anganwadi centres.
    • They would be representing the concerns of different sets of beneficiaries under the Integrated Child Development Services, or National Nutrition Mission.
    • Beneficiaries’ would include children between six months to three years, children between three years and six years, adolescent girls and pregnant women and lactating mothers.
    • These mothers will keep a watch on weekly ration distribution to them as well as suggest nutritious and tasteful recipes for meals served to children at the centres.
    • The move is being taken as per the mandate of the National Food Security Act, 2013 (NFSA).

    Its’ functioning

    • The committees will include mothers of beneficiary children as well as be represented by pregnant women and lactating mothers who are enrolled under the scheme.
    • The Anganwadi scheme includes a package of six services delivered at the centres, including supplementary nutrition, health services including vaccination, early education, among others.
    • The Committees will also include a woman panch, women active in the community and eager to volunteer their support to the scheme, teachers from the local school, and women heads of self-help groups (SHG).

    Why such a move?

    • This is in a move that is aimed at strengthening community response to the problem of hunger and malnutrition in the State.
    • With the help of mothers, we will be able to turn anganwadis into a community health system, a nutrition management centre, and spread awareness against social evils.
    • These will turn into a model for local governance as well as allow for greater engagement between communities and the State government.

    Back2Basics: Integrated Child Development Services (ICDS)

    • The ICDS aims to provide food, preschool education, primary healthcare, immunization, health check-up and referral services to children under 6 years of age and their mothers.
    • The scheme was launched in 1975, discontinued in 1978 by the government of Morarji Desai, and then relaunched by the Tenth Five Year Plan.
    • The tenth FYP also linked ICDS to Anganwadi centres established mainly in rural areas and staffed with frontline workers.
    • The ICDS provide for anganwadis or day-care centres which deliver a package of six services including:
    1. Immunization
    2. Supplementary nutrition
    3. Health checkup
    4. Referral services
    5. Pre-school education (Non-Formal)
    6. Nutrition and Health information

    Implementation

    • For nutritional purposes, ICDS provides 500 kilocalories (with 12-15 grams of protein) every day to every child below 6 years of age.
    • For adolescent girls, it is up to 500-kilo calories with up to 25 grams of protein every day.
    • The services of Immunisation, Health Check-up and Referral Services delivered through Public Health Infrastructure under the Ministry of Health and Family Welfare.
  • New Species of Plants and Animals Discovered

    Species in news: Myristica Swamp Treefrog

    Myristica swamp treefrog, a rare arboreal (living on trees) species endemic to the Western Ghats has been recorded for the first time in Kerala’s Thrissur district.

    Again, a stand-alone peculiar species is in the news. Make a special note here. Usually, note the species and its habitat location (IUCN status if available), in the purview of a generic prelims question.

    Myristica Swamp Treefrog

    • It bears the scientific name Mercurana myristicapalustris.
    • The frog was first spotted in 2013 in the Myristica swamps of Arippa, near the Kulathupuzha Reserve Forest, in the western foothills of Agasthyamalai, in Kollam district.
    • Unlike the Myristica swamp treefrog found in the foothills of the Agasthyamalai, these frogs were found to be active throughout June and early July.

    Unique traits

    • These frogs are rare and elusive for the reason that they are arboreal and active only for a few weeks during their breeding season.
    • During this season, there is a large aggregation of males that descend from the high canopy of the trees.
    • The breeding season, unlike for other frogs, starts in the pre-monsoon season (May) and ends before the monsoon becomes fully active in June.
    • Before the end of the breeding season, the female frogs along with their male counterparts descend on the forest floor. The female digs the mud and lays eggs in shallow burrows in mud.
    • After breeding and egg-laying, they retreat back to the high canopies of the tree and remain elusive till next breeding season.
  • Indian Army Updates

    Advanced Towed Artillery Gun System (ATAGS)

    User trials of the indigenous Advanced Towed Artillery Gun System (ATAGS) developed by the Defence Research and Development Organisation (DRDO) will be held very soon.

    Try this question for mains:

    Q.Discuss why high-altitude warfare is challenging. Also, discuss India’s preparedness for a long-term war.

    ATAGS System

    • The ATAGS is a 155-mm, 52-calibre artillery gun jointly developed by the DRDO in partnership with Bharat Forge of the Kalyani Group and the Tata Power SED.
    • ATAGS has greater than 95% of indigenous content. It set a world record for the longest unassisted projectile range of 48 kilometres.

    Its features

    • The gun consists of a barrel, breech mechanism, muzzle brake and recoil mechanism to fire 155 mm calibre ammunition with a firing range of 48 km.
    • It has an all-electric drive to ensure reliability and minimum maintenance over a long period of time.
    • It has advanced features like high mobility, quick deployability, auxiliary power mode, advanced communication system, automatic command and control system with night capability in direct fire mode.
  • Banking Sector Reforms

    A four-point agenda for Indian banking in the post-covid world

    The article suggest 4 imperatives to the banks in India to emerge successful from pain inflicted by the pandemic.

    Impact of pandemic on banking industry

    • Unlike other shocks, covid is not a banking crisis; it is, instead, a crisis of the real economy.
    • Globally, the average return on equity (RoE) for banks could go below 1.5% in 2021 before recovering to the 2019 pre-crisis levels of 9% by 2024
    • This is effectively a loss of five years for the banking industry.
    • This will likely play out in two stages:
    • 1) Loan loss provisions over a period of 12-18 months.
    • 2) Followed by a period where banking revenue growth lags gross domestic product growth, or GDP.

    Important role played by banks in pandemic

    • India has entered this crisis well-capitalized.
    • Their provision coverage ratios improved to 65% in 2019-20, compared to 41% in 2016-17, and RoE (return on equity) has turned positive to 2.5% after two years of negative readings.
    • The banking system is playing a critical role in the economic recovery by supporting businesses and individuals.
    • New challenges, however, continue to emerge. These, if left unmitigated, will lead to severe losses in efficiencies gained.

    4 Imperative to tackle the emerging challenges to banking

    1) Need to increase productivity

    • Indian banks start at a materially higher cost-to-assets ratio of 2.2% versus 1.4% globally.
    • Regaining pre-covid RoE levels and negating higher risk costs and margin compression will, however, require that Indian banks improve productivity by over 30%.
    • The Indian banking sector lagged in efficiency improvements; other industrial peers have leveraged a combination of digital adoption and analytics, and strong governance.

    Suggestions for productivity transformation

    • The productivity transformation will comprise multiple agendas.
    • To start with, there will be a branch format and network re-configuration for custormers who has shifted to online mode.
    • To drive a permanent digital shift, banks will need to accelerate digital engagement via contact centre transformations.
    • In conjunction, there will be the equally important need to create minimum viable support functions (zero-based operations, demand management across human resources, finance, marketing).
    • And, finally, there will be the need to re-skill the workforce for digital operations.

    2) Pre-emptive risk management

    • The second imperative is pre-emptive risk management.
    • Banks must rapidly rewire their policies and analytical models such that they reflect fast- moving indicators of risk.
    • This means investing in self-serve channels, digital nudges and frictionless journeys across payments, settlements and recoveries.
    • The overall collections strategy will have to be underpinned by micro-segmentation, and also leverage analytical models to drive efficiency.

    3) Technology imperative

    • The third is the technology imperative that must scale with demand and analytical complexity.
    • Banks are required to handle high digital traffic and process enormous data sets, and regulators getting increasingly sensitive on downtimes.
    • This will requires modernizing core banking platforms, creating the data architecture that supports the analytics life-cycle, instituting modern engineering practices and moving towards automated infrastructure.

    4) Capital management

    • Banks with exposure to hard-hit sectors will face more of a challenge.
    • And existing risk models are unlikely to be tuned to the differentiated impact the pandemic has had on various sectors.
    • Risk teams will need to review critical models and add overlays to account for different credit risk in each sector.
    • Scenario planning, stress testing and balance sheet optimization will need to become core to planning and management decisions.

    Conclusion

    In its own way, the pandemic has given banks a glimpse into the art of the possible. Banks should take this opportunity to embed their newfound speed and agility, reinvent their business model, and collaborate with the communities they serve to recast their contract with society.

  • Parliament – Sessions, Procedures, Motions, Committees etc

    Demand for repeal of the law and importance of parliamentary scrutiny

    The article explains in detail the functioning of committees in the scrutiny of the Bills and underscores the importance of scrutiny of the Bills at the committee levels.

    Growing trend of bypassing the scrutiny at committee level

    • Data show that very few Bills are referred to the Parliamentary Committees now.
    • Ministers are generally reluctant to send their Bills to the committees because they are in a hurry to pass them.
    • They often request the Presiding Officers not to refer their Bills to the committees.
    • But the Presiding Officers are required to exercise their independent judgment in the matter and decide the issue.
    • They need to keep in mind the fact that the Bills which the government brings before the Houses often have serious shortcomings.

    Why scrutiny by the House committee matters

    • The demand for the repeal of the laws passed by Parliament only recently essentially points to a serious lapse in the management of the legislative work in Parliament.
    • Parliament has put in place a large machinery of committees to scrutinise the Bills which are brought before it by the government as a part of its legislative programme.
    • Rules of the Houses leave it to the Speaker or the Chairman to refer the Bills to the Standing Committees for a detailed scrutiny thereof.
    • After such scrutiny, the committees send their reports containing their recommendations on improvements to be made in the Bills to the Houses.
    • While undertaking such scrutiny, the committees invite various stakeholders to place their views before them.
    • Only after elaborate consultation do the committees formulate their views and recommendations.
    • Free India’s Parliament established a vast network of committees to undertake scrutiny of various aspects of governance including the Bills.
    • Prior to the formation of Standing Committees, the Indian Parliament used to appoint select committees, joint select committees, etc. for detailed scrutiny of important legislative proposals of the government.
    • With the formation of standing committees, the occasions for appointing select or joint select committees are few.

    Example of the Bills made better by suggestions of committe

    • The Protection of Plant Varieties and Farmers’ Rights Bill was introduced in 1999 in the Lok Sabha and was immediately referred to a joint committee of both Houses.
    • This Bill was meant to develop new varieties of plants and protect the rights of farmers and breeders.
    • The committee completed its work in eight months and made many improvements by way of bringing greater clarity into various terms and concepts.
    • The Seeds Bill, 2004 was referred to the Standing Committee on Agriculture which obtained the views from diverse sources.
    • Through the process of consultation with a wide range of experts and research organisations and farmers, the committee made significant improvements in the Bill; as a result, there was a better law on seeds.
    • It was the same case with the Companies (Amendment) Bill, the Information Technology Bill, and the Goods and Services Tax Bill.
    • The Lokpal and Lokayuktas Bill which was introduced in the Lok Sabha in 2011, which was referred to the Committee, was again referred to a Select Committee of the Rajya Sabha when it was transmitted to that House after being passed by the Lok Sabha.
    • Thus, this Bill underwent double security by two committees of Parliament.

    Conclusion

    Our Parliamentary Committees have a tradition of working in a non-party manner. The reports of these Committees are based on consensus. It may be a bit difficult for people to believe that the instrumentalities of Parliament could rise above parties. But that is how they function.

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