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U.S. to moot first-of-its-kind resolution at UN seeking equal global access to AI
Why in the news?
- The United States is leading an effort at the United Nations to create rules for Artificial intelligence (AI).
Context-
- The draft resolution, which recognizes the rapid acceleration of AI development and use, aims to close the digital divide between countries.
- The United States initiated negotiations with all 193 UN member nations about three months before the statement.
- It plans to make sure that nations have the necessary capabilities to take advantage of the technology when it comes to detecting diseases and predicting floods.
What are the provisions proposed through the New framework?
- Encouragement for Regulatory and Governance Approaches: The resolution encourages various entities, including countries, organizations, communities, and individuals, to develop and support regulatory and governance frameworks for safe AI systems. It emphasizes the importance of safeguarding against improper or malicious use of AI systems.
- Global Movement Towards AI Regulations: Countries worldwide, including the U.S., China, and the EU, are working on AI regulations. The EU is set to finalize comprehensive AI rules, and other nations and groupings like the G20 are also developing AI regulations.
- Assistance to Developing Countries: The U.S. draft resolution calls for helping developing countries access the benefits of digital transformation and safe AI systems. It stresses the importance of respecting human rights and fundamental freedoms throughout the lifecycle of AI systems.
- Support for UN Development Goals: It particularly aims to support the UN’s 2030 goals, including ending hunger and poverty, improving health, and achieving gender equality.
Need Global support to pass the resolution:
- For Principles: The resolution aims to garner global support for a set of principles for developing and using AI. It intends to guide the use of AI systems for beneficial purposes while managing associated risks.
- If approved, the resolution is deemed a historic advancement in promoting safe, secure, and trustworthy AI on a global scale.
- Consensus Support: After several drafts, the resolution achieved consensus support from all member states. It will be formally considered later in the month.
- Non-Legally Binding: Unlike Security Council resolutions, General Assembly resolutions are not legally binding. However, they serve as important indicators of global opinion.
How it will positively impact the well-being of the Society all over?
AI can play a crucial role in both detecting diseases and predicting floods by leveraging various data sources, advanced algorithms, and computational power-
Disease Detection with AI:
- Medical Imaging Analysis: AI algorithms can analyze medical images such as X-rays, MRI scans, and CT scans to detect abnormalities or signs of diseases like cancer, tuberculosis, or pneumonia.
- Deep learning models, such as convolutional neural networks (CNNs), have shown remarkable accuracy in identifying patterns in medical images.
- Health Monitoring and Predictive Analytics: AI-powered health monitoring devices can continuously collect data such as heart rate, blood pressure, and glucose levels.
- Machine learning algorithms can analyze this data to detect anomalies or early signs of diseases, allowing for early intervention and prevention.
- Diagnostic Decision Support Systems: AI-based diagnostic systems can assist healthcare professionals in diagnosing diseases by analyzing patient data, symptoms, medical history, and laboratory test results.
- These systems can provide accurate and timely recommendations, improving diagnostic accuracy and efficiency.
Flood Prediction with AI:
- Data Analysis and Modeling: AI algorithms can analyze various data sources such as weather patterns, topography, soil moisture, river levels, and historical flood data to build predictive models. Machine learning techniques, including regression, decision trees, and neural networks, can identify complex relationships between these factors and predict the likelihood and severity of floods.
- Remote Sensing and Satellite Imagery: AI can analyze satellite imagery and remote sensing data to monitor changes in land use, vegetation, and water bodies. This information can be used to assess flood risks and predict flood events in vulnerable areas.
- Real-time Monitoring and Early Warning Systems: AI-powered sensors and monitoring devices can continuously collect data on rainfall, river levels, and water flow rates. Machine learning algorithms can analyze this data in real time to detect sudden changes or anomalies indicative of imminent flooding. Early warning systems can then alert authorities and communities, enabling them to take preventive measures and evacuate residents if necessary.
Conclusion-
In the way forward, global consensus on AI principles is vital. Continued efforts in developing regulatory frameworks and assisting developing nations are essential. AI’s role in disease detection and flood prediction underscores its potential for addressing global challenges effectively.
Mains Question for Practise-
Discuss the global efforts towards establishing regulatory frameworks for Artificial Intelligence (AI) and its applications in healthcare and disaster management. Examine the significance of international cooperation in ensuring the safe and beneficial deployment of AI technologies. (250 words)
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Ram Nath Kovind panel for simultaneous Lok Sabha, Assembly polls
Why in the news?
- A high-level committee chaired by former President Ram Nath Kovind has proposed conducting simultaneous elections
Context
- It has proposed conducting simultaneous elections for the Lok Sabha and State Assemblies as the initial step.
- Subsequently, municipal and panchayat elections would be held within 100 days following the general elections.
What is Simultaneous elections?
- Simultaneous elections, also known as “One Nation, One Election,” refer to the practice of holding elections for all levels of government – national, state, and local – simultaneously, or within a short period of time.
- This means that voters would cast their ballots for parliamentary (Lok Sabha), state legislative assembly (Vidhan Sabha), and local government (municipalities, panchayats) elections on the same day or within a closely coordinated timeframe.
Article 83 (Duration of Houses of Parliament): Article 83 specifies the tenure of the Lok Sabha, the lower house of Parliament. It states that the Lok Sabha’s duration is five years from the date of its first sitting unless dissolved earlier. The President has the authority to dissolve the Lok Sabha before the completion of its five-year term, leading to general elections.
Article 172 (Duration of State Legislatures): Article 172 deals with the duration of the Legislative Assemblies in the states. It mandates that the Legislative Assembly of a state will continue for five years from the date of its first sitting unless dissolved earlier. Similar to the Lok Sabha, the Governor of a state holds the power to dissolve the Legislative Assembly before the completion of its five-year term, leading to fresh elections.
Recommendation as per Committee-
- Synchronization Proposal: The committee proposed a method to synchronize elections by setting an ‘Appointed Date’ after the general elections. State Assemblies formed after this date and before the completion of the Lok Sabha’s term would conclude before subsequent general elections, enabling simultaneous polls.
- Tenure and Fresh Elections: The committee suggested that if a hung House or a no-confidence motion occurs, fresh elections could be conducted. However, the tenure of the House would only last for the remaining term of the preceding full term.
- Continuation of New Assemblies: In the case of fresh elections for Legislative Assemblies, the new Assemblies would continue until the end of the full term of the Lok Sabha unless dissolved earlier.
- Constitutional Amendments: Amendments to Article 83 and Article 172 of the Constitution are recommended to facilitate these changes regarding the duration of Parliament and State legislatures.
- Implementation of Changes: An implementation group is proposed to oversee the execution of the recommended amendments by the committee.
Examining the issue of Simultaneous elections:
- Law Commission’s Action: The 22nd Law Commission, concurrently examining the issue of simultaneous elections, is anticipated to submit its report to the Law Ministry soon. It is likely to recommend simultaneous polls from the 2029 general election cycle.
Ratification by States-
- Amendments to Constitution Articles: The committee recommends amendments to Article 324A to enable simultaneous elections in panchayats and municipalities. Amendments to Article 325 are suggested to empower the Election Commission of India (EC) to collaborate with state election authorities in preparing a unified electoral roll and voter ID cards.
- Article 324A: This article pertains to the recommendations for amendments to enable simultaneous elections in panchayats and municipalities.
- It implies that changes to Article 324A would empower the Election Commission of India (EC) to conduct elections for local bodies concurrently with state and national elections.
- The proposed amendment aims to streamline the electoral process and reduce the frequency of elections, aligning with the broader goal of synchronizing all levels of elections.
- Article 325: It deals with the right to vote and preparation of electoral rolls.
- The suggested amendments to Article 325 would authorize the Election Commission of India (EC), in consultation with state election authorities, to prepare a unified electoral roll and issue voter ID cards.
- This amendment seeks to establish a uniform and standardized voter registration process across different levels of elections, ensuring consistency and efficiency in voter identification and participation.
Significance of “One Nation, One Election”:
- Governance Efficiency: Conducting elections at all levels simultaneously can streamline the electoral process, reducing the disruptions caused by frequent elections. This leads to more stable governance and allows elected representatives to focus on their duties rather than preparing for elections.
- Cost Savings: Simultaneous elections can significantly reduce the financial burden associated with conducting multiple elections at different times. It helps in optimizing resources, cutting down on campaign expenses, and minimizing the overall cost to the exchequer.
- Voter Engagement: Coordinating elections at all levels encourages higher voter turnout by consolidating electoral activities. It simplifies the voting process for citizens and promotes greater participation in the democratic process.
- Policy Continuity: Simultaneous elections facilitate better policy planning and implementation by ensuring that elected governments at various levels have concurrent tenures. This continuity promotes stability and coherence in policymaking, leading to more effective governance.
- Reduced Political Polarization: By aligning electoral cycles, simultaneous elections can mitigate the intense political polarization often witnessed during election periods. It fosters a more collaborative political environment and encourages constructive dialogue among political parties.
Conclusion:
The proposal for simultaneous elections requires constitutional amendments and careful implementation. Cooperation among states and the Election Commission is essential for its success.
Mains PYQ-
Q- Simultaneous election to the Lok Sabha and the State Assemblies will limit the amount of time and money spent in electioneering but it will reduce the government’s accountability to the people’ Discuss.( UPSC IAS/2017)
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![[14 March 2024] The Hindu Op-ed: The Karnataka civil engineers Bill, its pathway](https://d18x2uyjeekruj.cloudfront.net/wp-content/uploads/2024/03/WhatsApp-Image-2024-03-17-at-2.41.11-PM-1568x882.jpeg)
[14 March 2024] The Hindu Op-ed: The Karnataka civil engineers Bill, its pathway
Mains PYQ Relevance:
Major cities of India are becoming vulnerable to flood conditions. Discuss. (2015)
Discussion the various social problems which originated out of the speedy process of urbanization in India. (2013)Note4Students:
Mains: Social Issues; Governance; Urbanization;
Mentor comments: The Karnataka Legislative Assembly passed the Karnataka Professional Civil Engineers Bill, 2024 to allow only registered engineers to approve building plans ensuring that they will be accountable for any eventualities. In light of this, the registration of professional Civil Engineers, standards of professional conduct, code of ethics and etiquette for professional civil engineers are connected. Although it’s State news, we need to look at this news because India, one of the most populated countries, has grappled with many issues related to Urbanization and unplanned cities for decades.
Let’s learn.
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Why in the News?
Recently, the Karnataka Legislative Assembly passed the Karnataka Professional Civil Engineers Bill, 2024 to allow only registered engineers to approve building plans ensuring that they will be accountable for any eventualities.
Provisions of the Karnataka Professional Civil Engineers Bill, 2024:
Aim: To improve professionalization and construction standards by requiring only certified civil engineers to offer engineering designs. However, this approach may create confusion, become restrictive, and remain out of sync with best practices
The Bill establishes the following key aspects:
Defining a civil engineer:
Anyone with a diploma or a degree in a civil engineering discipline in India or abroad can qualify as a civil engineer. Those with Degrees need 1 year of experience; those with Diplomas require 2 years of experience;
Must be registered with the Karnataka Council of Professional Civil Engineers within 1 year from the date of commencement of the Act. In addition, they should obtain a certificate to become a ‘professional civil engineer’ in Karnataka.
Listing engineering designs and Restricting who can offer engineering design services: Only professional civil engineers can offer engineering designs (civil, structural, geotechnical, and environmental).Instructing how to ensure compliance;
Instructing how to ensure compliance:
Firstly, the Bill insists that any building more than 50 square meters in plinth area or taller than the ground floor or not built with a load-bearing masonry structure.
Secondly, a group housing project with more than three buildings must be supervised or executed or certified only by professional civil engineers.
Thirdly, strict gate-keeping is imposed by instructing government authorities not to permit construction unless registered professional civil engineers certify designs and drawings.
On Reservation:
Out of all tenders not exceeding One Crore rupees, 4% of tenders are reserved for Category 1 Castes and 15% of tenders are reserved for Category 2A castes.What is the current dilemma w.r.t to Karnataka Professional Civil Engineers Bill, 2024?
- Overlap and Left-out: Despite overlaps between professional services in the building industry, the Bill restrictively defines engineering designs, potentially leading to confusion.
- This is baffling because the SC also pointed out difficulties in a comparable situation involving ‘architects’, the bill has refused to include related professionals from offering overlapping services.
- Silent on licensing requirements: The Karnataka Bill seeks absolute protection of services, but it falls short of licensing requirements and would benefit from tightening the certification process.
- It is probably for this reason that the Gujarat Professional Civil Engineers Act, 2006, which is similar, is restrained in its scope.
- Undermined with Global experiences: Many countries are cautious about regulations that restrict competition and support self-regulation of professions. Global practices suggest that protecting professional titles through rigorous processes and mandating high academic standards and experience is more effective than restricting services.
What can we learn from Global practices?
- Need to work on self-regulation of professions: Recalling a study on engineering licensing and professional practice across several countries would be worthwhile. Because there is no hard evidence that tight engineering licensure provides economic gains to societies.
- Need to avoid Extra Ring-fencing of Restrictions: Many professional council’s across the world, aware of these complexities, have not tried to ring-fence their services. Instead, they take the alternative and effective route of protecting titles such as ‘chartered engineer or architect’ by establishing a rigorous process that demands high academic standards and experience.
- Need for better peer interviews or examinations: Through this, users will come to know that professional titles are not offered lightly, and only the competent ones earn them. Users can be convinced by the credibility of the collective, and voluntarily seek certified professionals.
Case Study:
The Engineering Council in the UK clarifies that there are no restrictions on practicing as an engineer. However, it protects titles offered to the qualified and those who pass professional reviews. Only a limited number of high-risk constructions, such as reservoir design and road tunnel safety regulations, are reserved for licensed persons. In comparison, the Karnataka Bill seeks an absolute protection of services and falls short of licensing requirements. There are no examinations and fewer experience requirements in the Bill. It would serve better to tighten the process leading to certification.Conclusion:
The question professional must be decided on an event-to-event basis, locally and based on education, experience, and special knowledge. What would be even better is to resist the demand for professional turfs to control supply. An effective solution would be to influence the demand side by continuously demonstrating the usefulness of professionals and certification.
- Overlap and Left-out: Despite overlaps between professional services in the building industry, the Bill restrictively defines engineering designs, potentially leading to confusion.
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Has poverty really dropped to 5% in India?
Why in the news?
- NITI Aayog’s B.V.R. Subrahmanyam stated that less than 5% of Indians live below the poverty line based on HCES(Household Consumption Expenditure Survey) 2022-23 findings.
Context:
- According to the World Bank, in India, 21.9% of the population lives below the national poverty line in 2011.
- In 2018, almost 8% of the world’s workers and their families lived on less than US$1.90 per person per day (international poverty line).
- About HCES (Household Consumption Expenditure Survey): The HCES is usually conducted by the National Statistical Office (NSO) every 5 years. It is designed to collect information on the consumption of goods and services by households
What does the HCES Survey say?
- The survey indicates 2.5 times increase in consumption expenditure since 2011-12, but critics question income rise parity on basis of the following conditions:
- Nominal vs. Real Terms: Consumption has increased about 40% per capita in real terms over the past 11 years, despite nominal terms showing a 2.5 times increase.
- Wage Growth: Data from the Periodic Labour Force Survey (PLFS) reveals a 3.2% annual increase in wages for agricultural workers since 2011, indicating real wage growth.
- Tax Data: Tax records demonstrate robust growth in the wages of salaried workers since 2011, further supporting the claim of increased incomes lead to higher consumption.
How the Poverty line is defined in India? Does the poverty line need to be raised?
- The poverty line in India: Historically based on the Tendulkar Committee observation, the poverty line, currently approximates ₹1,500 in rural and ₹1,800 in urban areas. However, it lacks a clear conceptual basis, diverging from traditional calorie-based metrics. Additionally, there’s no officially declared poverty line presently.
- Poverty Line Calculation: NITI Aayog’s task force calculates the poverty line in India using data from the National Sample Survey Office, which is part of the Ministry of Statistics and Programme Implementation.
- Need for raising the Poverty line: In 2011-12, India’s poverty rate was 12.5%, but it has decreased to 5% by 2022-23. Using the Tendulkar poverty line, poverty levels are around 2%, indicating the need to increase the poverty line. Extreme poverty has been reduced, but raising the poverty line is necessary, as indicated by different calculations.
What is the Criticism faced along the lines of income rise parity?
- Real Wage Growth: Contrary to claims of wage growth, numerous studies indicate that real wages have grown by less than 1% annually since 2017, and have even declined for construction workers.
- Employment Data: The celebrated increase in employment shown in the latest PLFS survey for 2022-23 is misleading, as it primarily stems from a rise in unpaid family helpers rather than genuine job creation.
- Unpaid Workers: The prevalence of unpaid family helpers, particularly among women, has increased significantly, with 37.5% of women workers now being unpaid, up from 32% in previous years.
- Paid Employment Rates: When considering only paid employment (those receiving compensation for work), the rates are notably low, with only 48% for men and 13% for women, indicating a lack of genuine employment opportunities and wage growth for most working families.
- Stagnant Demand for Mass Consumption Goods: Despite overall consumption growth, demand for mass-consumption goods and fast-moving consumer goods (FMCGs) remains stagnant, suggesting limited improvement in the purchasing power of the majority of the population.
- Two-Wheeler Sales: Sales of two-wheelers, a key indicator of consumer demand, have not recovered to pre-demonetization levels (pre-November 2016), indicating persistent challenges in the broader economy affecting consumer spending habits.
The Other side of the coin-
- Concerns with Private Sector Data: There is skepticism regarding the quality of data provided by private sector entities like CMIE, particularly regarding indicators such as female labor force participation rates.
- Female Labor Force Participation Rate: CMIE data suggests a significantly low female labor force participation rate in India, with only 9% of women reportedly working, raising questions about the accuracy and reliability of these statistics.
- Comparison with Other Countries: The data implies that India’s female labor force participation rate is lower than that of countries like Yemen and Iraq, highlighting the severity of the issue and prompting concerns about the credibility of the data.
Way Forward: Measures to improve the data and poverty line –
- Revising Poverty Line Definition: Develop a clear conceptual basis for defining the poverty line, moving away from historical metrics like the Tendulkar poverty line towards more comprehensive and inclusive criteria, such as calorie-based metrics or multidimensional poverty indicators.
- Official Declaration of Poverty Line: Establish an officially declared poverty line, supported by rigorous research and consultation with experts, to provide clarity and consistency in poverty estimation efforts.
- Enhanced Monitoring and Evaluation: Strengthen monitoring and evaluation mechanisms to regularly review and update the poverty line based on evolving socio-economic conditions, ensuring its relevance and accuracy over time.
Conclusion:
The poverty line in India, historically based on the Tendulkar poverty line, needs revision due to its lack of conceptual basis and the absence of an official declaration. Despite reductions in extreme poverty, concerns persist over stagnant wage growth, misleading employment data, and the need for improved poverty measurement methodologies.
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Citizenship Amendment Act: Legal issues and status of judicial proceedings
Why in the news?
- The Ministry of Home Affairs notified the rules to implement the CAA, which fast-tracks citizenship for non-Muslim immigrants from neighbouring countries. Despite delays, the Act faces challenges in the Supreme Court.
Context
- Petitions challenge the CAA’s constitutionality, arguing it violates Article 14 by making religion a qualifier for citizenship.
- Petitions seek a stay on the recently notified rules, criticizing the bypassing of tiered scrutiny for citizenship applications and the government’s decision to implement rules before a final court decision.
About Citizenship Amendment Act 2019:
- Origin- The citizenship laws in India find their roots in the constitution through Articles 5-11 and the Citizenship Act of 1955. This legislation outlines provisions for acquiring citizenship through birth, descent, registration, and naturalization.
- Changes as per CAA 2019– It revised the Citizenship Act of 1955 to grant eligibility for Indian citizenship to illegal migrants who are Hindus, Sikhs, Buddhists, Jains, Parsis, and Christians from Afghanistan, Bangladesh, and Pakistan.
Citizenship Amendment Rules, 2024:
Despite a delay of over four years, the Ministry of Home Affairs has officially issued the Citizenship Amendment Rules, 2024, facilitating the implementation of the Citizenship Amendment Act 2019.
The key provisions include:
- Application Process: Eligible refugees are required to submit applications accompanied by affidavits verifying statements, character references from Indian citizens, and a declaration of proficiency in a designated Indian language for citizenship.
- E-Application to District-Level Committee: The rules stipulate that applications must be submitted electronically to a district-level committee for verification of documents and administration of the oath of allegiance. Failure to appear in person may result in rejection of the application by the empowered committee following review by the district committee.
- Supporting Documentation: Applicants are mandated to provide supporting documents such as passports, birth certificates, identity papers, land records, or evidence of ancestry from Pakistan, Afghanistan, or Bangladesh to substantiate their citizenship claims.
- Verification of Entry Date: Applicants must furnish evidence of entry before December 31, 2014, through one of the 20 specified documents, including FRRO registration, Census slips, government-issued IDs (such as Aadhaar, ration card, driver’s license), or marriage certificates issued in India.
What are the implications of CAA?
- Potential Impact on Muslims: The CAA, when combined with the proposed National Register of Indian Citizens (NRIC), has the potential to disproportionately affect Muslims residing in India. Non-Muslims may have an opportunity to obtain citizenship through the CAA, while Muslims may be denied this opportunity.
- Exclusion from NRIC: In the event of people being excluded from the NRIC, non-Muslims may have a pathway to inclusion through the CAA, while Muslims may face barriers. The Supreme Court-monitored NRC exercise in Assam in 2021 left over 19 lakh people from the citizenship register, raising concerns about exclusion and discrimination.
- Executive Order and Implementation: The Union government issued an order granting District Collectors in five states with high migrant populations the power to grant citizenship to groups identified in the CAA amendment. However, there were allegations that this order was a tactic to implement the CAA, which the government denied.
- Relaxation of Citizenship Criteria: The newly notified rules under the CAA have eased the process of granting Indian citizenship to members of specified communities by excluding the requirement of a valid passport or visa. Instead, documents showing ancestry from designated countries are deemed sufficient.
- Constitutional Challenges: The constitutionality of the CAA has been challenged in court, with petitions arguing that the law violates Article 14 of the Constitution by making religion a qualifier for citizenship.
- Impact on Assam Accord: The CAA has been criticized as undermining the Assam Accord of 1985, which does not differentiate on grounds of religion and deems any person who cannot prove ancestry beyond March 24, 1971, as an alien. Petitions contend that the law may lead to an increase in the influx of illegal migrants from Bangladesh to Assam.
How has the Supreme Court responded? (Judicial Stand)
- December 2019: The Supreme Court, led by former Chief Justice of India (CJI) S.A. Bobde, refused to stay the operation of the CAA. Instead, the court suggested that the government should publicize the actual intent of the Act.
- A similar plea for a stay was rejected by the court on January 22, 2020, with the court emphasizing the need to hear the government’s perspective first.
- October 2022: A Bench led by former CJI U.U. Lalit ordered that final hearings in the case would commence on December 6, 2022.
- However, since then, the case has not been listed. According to the Supreme Court’s website, the petitions are currently before a Bench headed by Justice Pankaj Mithal.
What is the significance of the challenge to Section 6A?
- Dependence on Assam Accord: Section 6A was introduced in furtherance of the Assam Accord, a Memorandum of Settlement signed in 1985 to resolve issues related to immigration in Assam.
- Therefore, the challenge to Section 6A is intricately linked to the implementation and interpretation of the Assam Accord.
- Legal Implications: The challenges against Section 6A of the Citizenship Act and the CAA raise significant legal questions regarding their constitutionality and compatibility with existing laws and agreements.
- These legal challenges highlight the need for clarity and consistency in India’s citizenship laws.
- Interpretation of Assam Accord: Section 6A of the Citizenship Act, introduced by the Assam Accord of 1985, establishes March 24, 1971, as the cut-off date for determining citizenship in Assam.
- The challenges against this provision and the CAA raise questions about the interpretation and implementation of the Assam Accord, which aimed to resolve issues related to immigration in Assam.
Why are petitioners seeking a stay on the rules?
- Changes in Scrutiny Process: The rules have reportedly eliminated the tiered scrutiny process of applications for citizenship by District Collectors.
- Previously, District Collectors scrutinized applications, and state governments provided recommendations on granting citizenship. The removal of this scrutiny process is a concern for the petitioners.
- Timing of their implementation: The petitioners highlight that the government had previously avoided a push for a stay on the Citizenship Amendment Act (CAA) in the Supreme Court five years ago by arguing that the rules for implementation had not been framed.
- Now, with the rules in place, the petitioners question the timing of their implementation.
- Pending Decision from Supreme Court: The petitioners argue that the government should have awaited a final decision from the Supreme Court regarding the constitutionality of the CAA before implementing the rules.
- They suggest that implementing the rules without a definitive ruling from the court could preempt its decision-making process.
Conclusion:
- Implementing the Citizenship Amendment Act and its accompanying rules faces legal challenges and societal implications.
- Moving forward, ensuring fairness, inclusivity, and adherence to constitutional principles will be vital in resolving the complexities surrounding citizenship laws in India.
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Mapping: Darien Gap
Why in the news:
- Much of the discussion over illegal immigration to the US has in recent weeks moved its focus south to the Darien Gap.
What is Darien Gap?
- The Darien Gap spans northern Colombia and Southern Panama, covering approximately 97 km of dense jungle terrain.
- It is situated in the narrowest part of the Isthmus of Panama, connecting North America to South America.
- It covers an area of approximately 41,440 square km.
- The landscape is characterized by dense rainforests, swamps, rivers, and rugged mountains.
- It is one of the most biologically diverse regions on Earth, home to a wide array of plant and animal species, including jaguars, pumas, tapirs, and numerous bird species.
Why in the news?
Ans. Surge in Illegal Crossings
- Escalating Numbers: In 2021, the Panamanian government recorded a staggering 133,000 crossings, with over half a million individuals transiting through the region in 2023.
- Root Causes: Violence, insecurity, and limited legal immigration options in home countries propel individuals, including Venezuelans, Haitians, and Afghans, to undertake the perilous journey.
Try this PYQ from CSE Prelims 2015:
The area known as ‘Golan Heights’ sometimes appears in the news in the context of the events is related to:
(a) Central Asia
(b) Middle East
(c) South-East Asia
(d) Central Africa
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RBI may move some NBFCs to Top Layer this year
In the news
- Nearly two years after introducing a revised regulatory framework for non-banking finance companies (NBFCs), the Reserve Bank of India is set to review the categorisation of NBFCs in 2024.
- Currently, 16 NBFCs are placed in the upper layer.
What are Non-Banking Financial Companies (NBFCs)?
- A NBFC is a company registered under the Companies Act, 1956.
- It engaged in the business of loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire-purchase, insurance business, and chit business.
- It does NOT include any institution whose principal business is that of agriculture activity, industrial activity, purchase or sale of any goods (other than securities) or providing any services and sale/purchase/construction of immovable property.
How are NBFCs different from Bank?
- NBFCs lends and make investments and hence their activities are akin to that of banks.
- However, there are a few differences as given below:
- Commercial Banks are regulated under Banking Regulation Act, 1949.
- NBFC CANNOT accept demand deposits.
- NBFCs DO NOT form part of the payment and settlement system and cannot issue cheques drawn on itself.
- Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is NOT available to depositors of NBFCs, unlike in case of banks.
Different types/categories of NBFCs registered with RBI
NBFCs are categorized:
- in terms of the type of liabilities into Deposit and Non-Deposit accepting NBFCs,
- non deposit taking NBFCs by their size into systemically important and other non-deposit holding companies (NBFC-NDSI and NBFC-ND) and
- by the kind of activity they conduct.
Within this broad categorization the different types of NBFCs are as follows:
Definition Asset Finance Company (AFC) A financial institution primarily engaged in financing physical assets used in productive/economic activities, such as automobiles, tractors, machinery, and industrial equipment. Investment Company (IC) A company whose principal business involves acquiring securities. Loan Company (LC) A financial institution primarily engaged in providing finance through loans, advances, or other means for activities other than its own. Does not include Asset Finance Companies.
Infrastructure Finance Company (IFC) A non-banking finance company that deploys at least 75% of its total assets in infrastructure loans, with a minimum Net Owned Funds of ₹300 crore, a minimum credit rating of ‘A’ or equivalent, and a CRAR of 15%. Systemically Important NBFCs NBFCs with an asset size of ₹500 crore or more, as per the last audited balance sheet. Considered significant due to their potential impact on the overall financial stability of the economy.
Scale-Based Regulation of NBFCs
- Scale-based regulations came into effect in October 2021 and were implemented a year later by RBI.
- There are four layers namely the base layer, middle layer, upper layer and top layer.
- As on September 30, 2023, NBFCs in the base, middle and upper layers constituted 6 per cent, 71 per cent and 23 per cent of the total assets of NBFCs respectively.
- Presently, no NBFC is listed in the top layer.
Here’s a breakdown of the key aspects of the SBR:
- Base Layer (NBFC-BL)
- The Base Layer primarily comprises non-deposit-taking NBFCs with assets below Rs 1,000 crore.
- It encompasses NBFC Peer to Peer (P2P), NBFC-Account Aggregator (AA), Non-Operative Financial Holding Company (NOFHC), and NBFCs without public funds and customer interface.
- Middle Layer (NBFC-ML)
- The Middle Layer includes deposit-taking NBFCs and non-deposit-taking NBFCs with assets exceeding Rs 1,000 crore.
- It encompasses NBFCs involved in specific activities such as Standalone Primary Dealers (SPDs), Infrastructure Debt Fund – NBFCs (IDF-NBFCs), Core Investment Companies (CICs), Housing Finance Companies (HFCs), and Infrastructure Finance Companies (NBFC-IFCs).
III. Upper Layer (NBFC-UL)
- The Upper Layer comprises NBFCs identified by RBI as requiring enhanced regulatory requirements based on specific parameters and scoring methodology.
- The top 10 eligible NBFCs in terms of asset size will always be placed in the Upper Layer, irrespective of other factors.
- Top Layer (NBFC-TL)
- NBFCs in the Upper Layer may be transferred to the Top Layer if RBI perceives a significant increase in potential systemic risk.
- Currently, the Top Layer remains vacant but serves as a precautionary measure for heightened risk situations.
With inputs from: https://rbi.org.in/scripts/PublicationsView.aspx?Id=21580
Practice MCQ:
Q. With reference to the Scale-Based Regulation of Non-Banking Financial Companies (NBFCs), consider the following statements:
- Higher the layer, least is the regulatory intervention required by the RBI.
- Currently, no NBFC is listed in the top layer.
Which of the given statements is/are correct?
a) Only 1
b) Only 2
c) Both 1 and 2
d) Neither 1 nor 2
Try this PYQ from CSE 2020:
- If you withdraw ` 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be:
(a) to reduce it by ` 1,00,000
(b) to increase it by ` 1,00,000
(c) to increase it by more than ` 1,00,000
(d) to leave it unchanged
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Centre bans 18 OTT Platforms for Inappropriate Content
In the news
- The Information & Broadcasting Ministry has blocked 18 OTT platforms on the charge of publishing obscene and vulgar content.
How were these platforms banned?
- The contents listed on the OTT platforms was found to be prima facie violation of:
- Section 67 and 67A of the Information Technology Act, 2000;
- Section 292 of the Indian Penal Code; and
- Section 4 of the Indecent Representation of Women (Prohibition) Act, 1986.
- These platforms were violative of the responsibility to not propagate obscenity, vulgarity and abuse under the guise of ‘creative expression’.
How are OTT Platforms regulated in India?
- Regulatory Framework: The Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules, 2021 introduce a Code of Ethics applicable to digital media entities and OTT platforms.
- Key Provisions: These guidelines encompass content categorization, parental controls, adherence to journalistic norms, and the establishment of a grievance redressal mechanism to address concerns.
[A] Content Regulations
- Age-Based Classification: OTT platforms like Netflix and Amazon Prime are mandated to classify their content into five age-based categories: U (universal), 7+, 13+, 16+, and A (adult).
- Parental Locks: Effective parental locks must be implemented for content classified as 13+, ensuring that parents can control access to age-inappropriate material.
- Age Verification: Robust age verification systems are required for accessing adult content, enhancing parental oversight and safeguarding minors from exposure to inappropriate material.
[B] Grievance Redressal Mechanism
- Three-Tier System: A comprehensive grievance redressal mechanism consisting of three tiers has been established:
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- Level-I: Publishers are encouraged to engage in self-regulation to address grievances and concerns internally.
- Level-II: A self-regulating body, headed by a retired judge from the Supreme Court or High Court or an eminent independent figure, will oversee complaints and ensure impartial resolution.
- Level-III: The Ministry of Information and Broadcasting will formulate an oversight mechanism and establish an inter-departmental committee tasked with addressing grievances. This body possesses the authority to censor and block content when necessary.
[C] Selective Banning of OTT Communication Services
- Parliamentary Notice: Concerns about the influence and impact of OTT communication services prompted a notice from a Parliamentary Standing Committee to the Department of Telecom (DoT).
- Scope of Discussion: This discussion focuses exclusively on OTT communication services such as WhatsApp, Signal, Meta (formerly Facebook), Google Meet, and Zoom, excluding content-based OTTs like Netflix or Amazon Prime.
- Regulatory Authority: Content regulation within OTT communication services falls under the jurisdiction of the Ministry of Information and Broadcasting (MIB), emphasizing the government’s commitment to ensuring responsible communication practices.