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  • Places in news: Indira Point

    The Swarnim Vijay Varsh Victory Flame was taken to Indira Point, the southernmost tip of the country on August 22, 2021, as part of its voyage to the Nicobar Group of Islands.

    Indira Point

    • Indira Point is the southernmost point of Indian Territory.
    • It is a village in the Nicobar district at Great Nicobar Island of Andaman and Nicobar Islands in India.
    • Rondo Island, Indonesia’s northernmost island in Sabang district of Aceh province of Sumatra, lies 163 km south of Little Andaman Island and 145 km or 80 nautical miles from Indira point.
    • The point was formerly known as Pygmalion Point and Parsons Point. It was renamed in honour of Indira Gandhi during mid-1980s.
    • Galathea National Park and Lighthouse are the major attractions here.

    India and Indonesia are upgrading the deep sea port Sabang under the strategic military and economic collaboration to protect the channel between Great Nicobar Island and Rondo Island which is 612 km or 330 nautical miles from Indira Point.

    What is Swarnim Vijay Varsh?

    • It marks the 50th anniversary of the 1971 India-Pakistan war.
    • Vijay Diwas is celebrated every year on December 16 to mark India`s triumph in liberating Bangladesh.
    • The journey of the Victory Flame is taken from north to south corners of India.
  • What Indian lawmaking needs: More scrutiny, less speed

    Context

    The recent Monsoon Session of Parliament is proof that the speed of passing laws trumps their rigorous scrutiny in our legislative process.

    Issues with lawmaking process in India

    1) Avoiding pre-legislative scrutiny

    • In our parliamentary system, a majority of laws originate from the government.
    • Each ministry decides the path its legislative proposals will take from ideation to enactment.
    • For example, last year, the Shipping Ministry requested public feedback on the two bills — Marine Aids and Inland Vessels.
    • This mechanism enables the strengthening of the legal proposal through stakeholder inputs before being brought to Parliament.
    • However, ministries expedite their bills by not putting them through a similar pre-legislative scrutiny process.

    2) Misuse of Ordinance route

    • Over the years, successive governments have exploited the spirit of this constitutional provision.
    • Governments have promulgated an ordinance a few days before a parliamentary session, cut a session short to issue one, and pushed a law that is not urgent through the ordinance route.
    •  But the executive sometimes fails to follow through on the legislative urgency.
    • Bringing in law through the ordinance route also bypasses parliamentary scrutiny.
    • But parliamentary committees rarely scrutinise bills to replace ordinances because this may take time and defeat the issuing of the ordinance.
    • Over the last few years, bills like GST, Consumer Protection, Insolvency and Bankruptcy, Labour Codes, Surrogacy, and DNA Technology have benefited from parliamentary committees’ scrutiny.
    • Their closed-door technical deliberations, inputs from ministry officials, subject-matter experts, and ordinary citizens have strengthened government bills.

    3) Delay in rule framing

    • Unnecessary urgency in getting laws passed by Parliament does not result in their immediate implementation.
    • For the law to work on the ground, the government is supposed to frame rules.
    • Last year the Cabinet Secretary twice requested the personal intervention of secretaries heading the Union ministries to frame regulations for bringing into force the laws made by Parliament.
    • Before the Monsoon Session, he wrote a follow-up letter on similar lines to his colleagues.

    Implication of fast-tracking the law-making

    • Difficulty in achieving desired outcomes: Hurriedly-made and inadequately-scrutinised laws hardly ever achieve their desired outcomes.
    • Wastage of time of legislature: Enacting statutes without proper scrutiny also wastes the legislature’s time when the government approaches Parliament to amend such laws.
    • Loss of opportunity: But the unmeasurable cost of a poorly-made law is in the loss of opportunity to an entire nation that has to comply with it.

    Way forward

    • The government must ensure that it identifies the gaps in our legal system proactively.
    • All its bills should go through pre-legislative scrutiny before being brought to Parliament.
    • The legislature, on its part, should conduct in-depth scrutiny of government bills.
    • Mandatory scrutiny of bills by parliamentary committees should become the rule and not the exception.

    Conclusion

    India is in urgent need of course correction in its legislating process. What we need is a robust law-making process.

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  • 24th August 2021| Daily Answer Writing Enhancement(AWE)

    Topics for Today’s questions:

    GS-1    Salient features of world’s physical geography

    GS-2   Structure, Organization and Functioning of the Executive and the Judiciary—Ministries and Departments of the Government; Pressure Groups and Formal/Informal Associations and their Role in the Polity.

     GS-3   Inclusive Growth and issues arising from it.

    GS-4   Probity in Governance: Concept of public service;
    Philosophical basis of governance and probity.

    Questions:

    Question 1)

     

    Q.1 Explain the concept of Diastrophism and elaborate on the processes that form part of it. (15 Marks)

     

    Question 2)

    Q.2 The Constitution no doubt contemplates a hierarchy of jurisdictions, but no judge, acting within her jurisdiction, is “inferior” or “subordinate”. In light of this, examine the implications of the use of the term for the judiciary and suggest the way forward. (10 Marks)

    Question 3)

    Q.3 Borrowers in the country have been underserved because of the preference for collateralized loans. How the account aggregator framework announced by the RBI seeks to deal with the problems faced by borrowers and lenders? (10 Marks)

    Question 4)  

    Q.4 Explain the importance of probity in governance. What measures have been undertaken for ensuring probity in governance in India? (10 Marks)

     

    HOW TO ATTEMPT ANSWERS IN DAILY ANSWER WRITING ENHANCEMENT(AWE)?

    1. Daily 4 questions from General studies 1, 2, 3, and 4 will be provided to you.

    2. A Mentor’s Comment will be available for all answers. This can be used as a guidance tool but we encourage you to write original answers.

    3. You can write your answer on an A4 sheet and scan/click pictures of the same.

    4.  Upload the scanned answer in the comment section of the same question.

    5. Along with the scanned answer, please share your Razor payment ID, so that paid members are given priority.

    6. If you upload the answer on the same day like the answer of 1st August is uploaded on 1st August then your answer will be checked within 72 hours. Also, reviews will be in the order of submission- First come first serve basis

    7. If you are writing answers late, for example, 1st August is uploaded on 3rd August, then these answers will be evaluated as per the mentor’s schedule.

    8. We encourage you to write answers on the same day. However, if you are uploading an answer late then tag the mentor like @Staff so that the mentor is notified about your answer.

    *In case your answer is not reviewed, reply to your answer saying *NOT CHECKED*. 

    For the philosophy of AWE and payment: 

  • National Monetization Pipeline

    The Union Finance Minister has launched the National Monetization Pipeline for the brownfield infrastructure assets.

    What is Asset Monetization?

    • Asset Monetization involves the creation of new sources of revenue by unlocking of the value of hitherto unutilized or underutilized public assets.
    • Internationally, it is recognized that public assets are a significant resource for all economies.
    • Many public sector assets are sub-optimally utilized and could be appropriately monetized to create greater financial leverage and value for the companies and of the equity that the government has invested in them.
    • This helps in the accurate estimation of public assets which would help in the better financial management of government/public resources over time.

    National Monetization Pipeline (NMP)

    • The NMP comprises a four-year pipeline of the Central Government’s brownfield infrastructure assets.
    • It will serve as a medium-term roadmap for the Asset Monetization initiative of the government, apart from providing visibility for the investors.
    • Incidentally, the 2021-22 Union Budget, laid a lot of emphasis on Asset Monetization as a means to raise innovative and alternative financing for infrastructure.
    • It has to be noted that the government views asset monetization as a strategy for the augmentation and maintenance of infrastructure, and not just a funding mechanism.

    What is the plan?

    • NMP is envisaged to serve as a medium-term roadmap for identifying potential monetization-ready projects, across various infrastructure sectors.
    • It estimates aggregate monetization potential of Rs 6.0 lakh crores through core assets of the Central Government, over a four-year period, from FY 2022 to FY 2025.

    Objectives of the program

    • NMP aims for universal access to high-quality and affordable infrastructure to the common citizen of India.
    • Asset monetization, based on the philosophy of Creation through Monetization, is aimed at tapping private sector investment for new infrastructure creation.
    • This is necessary for creating employment opportunities, thereby enabling high economic growth and seamlessly integrating the rural and semi-urban areas for overall public welfare.
    • The strategic objective of the programme is to unlock the value of investments in brownfield public sector assets by tapping institutional and long-term patient capital.

    Framework

    The framework for core asset monetization has three key imperatives:

    • The pipeline has been prepared based on inputs and consultations from respective line ministries and departments, along with the assessment of total asset base available therein.
    • Monetization through disinvestment and monetization of non-core assets have not been included in the NMP.
    • Further, currently, only assets of central government line ministries and CPSEs in infrastructure sectors have been included.
    • Process of coordination and collation of asset pipeline from states is currently ongoing and the same is envisaged to be included in due course.

    Estimated Potential

    • The aggregate asset pipeline under NMP over the four-year period, FY 2022-2025, is indicatively valued at Rs 6.0 lakh crore.
    • The estimated value corresponds to ~14% of the proposed outlay for Centre under NIP (Rs 43 lakh crore). This includes more than 12-line ministries and more than 20 asset classes.
    • The sectors included are roads, ports, airports, railways, warehousing, gas & product pipeline, power generation and transmission, mining, telecom, stadium, hospitality and housing.
    • The top 5 sectors (by estimated value) capture ~83% of the aggregate pipeline value. These top 5 sectors include: Roads (27%) followed by Railways (25%), Power (15%), oil & gas pipelines (8%) and Telecom (6%).

    Implementation & Monitoring Mechanism

    • As an overall strategy, significant share of the asset base will remain with the government.
    • The programme is envisaged to be supported through necessary policy and regulatory interventions by the Government in order to ensure an efficient and effective process of asset monetisation.
    • These will include streamlining operational modalities, encouraging investor participation and facilitating commercial efficiency, among others.
    • Real time monitoring will be undertaken through the a separate dashboard.

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  • 3 Stress-management techniques that can help you remain calm during UPSC Prelims 2021-22

    3 Stress-management techniques that can help you remain calm during UPSC Prelims 2021-22

    Dear aspirants,

    Cracking UPSC exam is all about:

    Syllabus Management + Time Management + Stress Management

    As Prelims approaches, you have already worked on your syllabus. If you have practiced mock papers then you know how to manage your time too. But what about STRESS?

    Most students lose their nerves during the exam and miss out on qualifying due to stress. The uncertain and unpredictable situation can make you lose accuracy and you may even miss the question whose answers you know. Stress can consume you effortlessly but it takes time and practice to manage it.

    That’s why we would like to share these 3 techniques that can help you manage your stress and score in your exam!

    A) 15 Seconds breathing exercise – When we feel stressed, our heart beats faster to provide more oxygen to the brain. But if it increases further, it reduces our mental alertness and hampers our memory. What to do? 

    According to Jason Selk – “Take a 15-second breath. 6 seconds in, 2 seconds hold, 7 seconds out. This will trick your brain into thinking that you don’t need more oxygen and that you can handle the situation.”

    Practice this every day so that when you sit for the exam and feel the stress getting to you, you can take 15 seconds and relax before you start answering.

    B) The situation has no meaning, we give meaning to it – Remember, the exam is a neutral condition. It is neither stressful nor stress-free. It’s just an exam. The more we hype it up in our minds, the more stressful the paper seems. Relax! Tell yourself that it is nothing more than an exam and you can beat it! Trust yourself and your preparation and do not let the thought of the exam stress you out.

    C) Most of our thoughts are negative – A study states that we have over 6,200 thoughts in a day. And when we are under stress, most of our thoughts are negative. During the exam, when we get stressed, we give more value to the negative thoughts and the stress starts building even more. 

    This is where guidance from your mentors can help you manage stress. All you need to do is remember what your mentors taught you about stress management. Keep in mind how they explained the techniques to manage your time and answers. (Example below)

    But if you haven’t learned these techniques, you can still get in touch with our mentors for absolutely free and learn a few stress management techniques that can help you remain calm during the tough times and focus only on cracking the exam.

    Another aspirant wrote this:

    The mentors at Civilsdaily helped students manage their concerns and stress during their most difficult times. In fact, as a testament, one of our students wrote the following about our mentorship program:

  • [Burning Issue] MSMEs – The lifeline of the Indian Economy

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    The Prime Minister’s dream of a $5-trillion Indian economy by 2025 along with effective financial inclusion and sustainable economic outcomes is premised on investment from both domestic and foreign investors. Government expenditure can only provide a stimulus, but cannot alone take India to PM’s goal.

    For domestic private investments to happen, the role of timely, adequate, and quality (low cost) credit cannot be overstated, particularly during the current times when Covid induced stress is maximum on almost all industries.

    With the recent change in the definition, more than 95 percent of Indian companies are bought under the definition of MSMEs. So what ails the MSME sector largely reflects the credit eco-system for more or less the entire industry in this country. So it is very important to identify the issues the MSME sector face today and how we can rectify them.

    But before that, let us look at various aspects of the MSME sector.

    India’s MSME Sector

    • The Indian MSME sector is the backbone of the national economic structure and has unremittingly acted as the bulwark for the Indian economy, providing it resilience to ward off global economic shocks and adversities.
    • With around 63.4 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities as well as 33.4% of India’s manufacturing output.
    • They have been able to provide employment to around 120 million persons and contribute around 45% of the overall exports from India.

    What are MSMEs? How are they defined?

    Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 which was notified on October 2, 2006, deals with the definition of MSMEs. The MSMED Act, 2006 defines the Micro, Small and Medium Enterprises based on:

    1. the investment in plant and machinery for those engaged in manufacturing or production, processing or preservation of and
    2. the investment in equipment for enterprises engaged in providing or rendering of services.

    The significance of MSMEs:

    The significance of MSMEs is attributable to their caliber for employment generation, low capital, and technology requirement.

    • They are also important for the promotion of industrial development in rural areas, use of traditional or inherited skill, use of local resources, mobilization of resources and exportability of products.
    • According to the estimates of the Ministry of MSME, Government of India, the sector generates around 100 million jobs through over 46 million units situated throughout the geographical expanse of the country.
    • With 38% contribution to the nation’s GDP and 40% and 45% share of the overall exports and manufacturing output, respectively, it is easy to comprehend the salience of the role they play in social and economic restructuring of India.
    • Besides the wide range of services provided by the sector, the sector is engaged in the manufacturing of over 6,000 products ranging from traditional to hi-tech items.

    Why the MSME sector is important especially for India?

    • Employment: The Indian MSME sector provides maximum opportunities for both self-employment and wage-employment outside the agricultural sector.
    • Help building inclusive and sustainable society: It contributes to building an inclusive and sustainable society in innumerable ways through the creation of non-farm livelihood at low cost, balanced regional development, gender and social balance, environmentally sustainable development, etc.
    • For example: Khadi and Village industries require low per capita investment and employs a large number of women in rural areas.
    • Contribution to GDP: With around 36.1 million units throughout the geographical expanse of the country, MSMEs contribute around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.
    • MSME ministry has set a target to up its contribution to GDP to 50% by 2025 as India becomes a $5 trillion economy.
    • Exports: It contributes around 45% of the overall exports from India.

    How many MSMEs does India have, who owns them?

    • According to the latest available (2018-19) Annual Report of Department of MSMEs, there are 6.34 crore MSMEs in the country.
    • Around 51 per cent of these are situated in rural India.
    • Together, they employ a little over 11 crore people but 55 per cent of the employment happens in the urban MSMEs.
    • The numbers suggest that, on average, less than two people are employed per MSME.
    • At one level that gives a picture of how small these really are. But a breakup of all MSMEs into micro, small and medium categories is even more revealing.

    What are the issues MSMEs face?

    (1) Access to Credit: Most of the MSMEs are in rural and semi-urban areas where access to credit is extremely limited.

    • They are vulnerable to predatory moneylenders and often fall into a cycle of debt.
    • Lack of access to finance and timely credit support in business has been a long-standing issue for these MSMEs.

    (2) Under Severe Debt: Due to difficulties faced in seeking loans and working capital from banks and delays in receiving government payments and tax refunds, most of the MSMEs are under severe debt.

    (3) Under financing by formal institutions: There is an overall debt demand of ₹69.3 trillion of which 84 percent is financed by informal sources such as moneylenders, family, friends, and chit funds (IFC study).

    • Formal sources such as commercial banks, NBFCs and government institutions cater to a mere 16 per cent.
    • The failure of traditional lending mechanisms to guide credit towards these MSMEs has led to a scenario where financing is often not reliable, and steady.
    • This has been particularly exacerbated by the pandemic, as well as the poor state of micro financing in the country, highlighted by India’s estimated credit gap of over $330 billion.

    (4) Small size of the majority of firms: More these 80 percent of these MSMEs are in the micro and small category and are depending on informal sources of credit.

    • The usefulness of the government’s emergency line credit stressed asset relief, equity participation and fund of funds operation make very little meaning and contribution to the sector.

    (5) Insufficient financing by banks due to fear of NPAs: Banks employ various methods to limit risk by better assessment of the creditworthiness of individuals or firms, MSMEs included. To keep NPAs down, many credit-worthy individuals are denied loans by banks.

    • While determining creditworthiness, there are two errors that are common — False Acceptance of a bad applicant and False Rejection of a good applicant.
    • The former error is detrimental for banks and increases risk while the latter impacts financial inclusion and economic growth itself.
    • While there are number of punitive actions prescribed against commissions of irregular loan financing, there is complete absence of punitive action against omissions of genuine credit financing of businesses, particularly the MSMEs.
    • Thus, there is no incentive for bank managers to take risks and finance genuine credit requirements.
    • This kind of approach to credit adversely impacts both growth and financial inclusion.

    (6) Lack of paperwork or digital footprint for small MSMEs, a factor that holds them back from being integrated into the formal economy and deprives the MSMEs to take advantage of the formal credit system.

    • They continue to gain access to credit against assets such as land, etc. when much of the MSME development has started to follow a digital model.

    (7) Technological Disruption: India‘s MSME sector is based on obsolete technology, which hampers its production efficiency.

    • The emergence of new technologies like Artificial Intelligence, Data Analytics, Robotics, and related technologies (collectively called as Industry Revolution 4.0) is a bigger challenge for MSMEs than for organized large-scale manufacturing.

    Other problems

    • Long receivables cycles make a mess of working capital management.
    • Limited access to trained labour, technical progress and management support limit their growth.
    • Other common problems faced by small enterprises are related to the availability of technology, infrastructure and managerial competence, and limitations posed by labour laws, taxation policy, market uncertainty and imperfect competition.

    Opportunity areas for MSMEs in India

    Telecommunications

    • Domestic manufacturing of low-cost mobile phones, handsets, and devices;
    • Manufacturing of telecom networking equipment, including routers and switches;
    • Manufacture of base transceiver station equipment;
    • Mobile customer data analytics – services oriented toward analytical solutions; and
    • Development of value-added services

    Healthcare

    • Manufacturing of personal protective equipment (PPE) and face masks, as the COVID-19 pandemic has fundamentally changed social behaviour, public health and hospital needs, and created new demand;
    • Manufacturing of low-cost medical devices, and medical accessories such as surgical gloves, scrubs, and syringes;
    • Low-cost surgical procedures to reduce the cost of healthcare;
    • Telemedicine; and
    • Diagnostic labs.

    Electronics

    • Domestic manufacturing of low-cost consumer electronics, consumer durables;
    • Nano-electronics and microelectronics;
    • Electronic Systems Design and Manufacturing including semiconductor design, electronic components design and hi-tech manufacturing under India’s ‘National Electronics Mission; and
    • Strategic electronics, as the government is keen on encouraging the domestic manufacturing of products needed by the security forces.

    Others

    • Other areas that offer opportunities for MSMEs include information technology, pharmaceutical, chemical, automotive, renewable, gems and jewellery, textile, and food and agriculture.

    COVID-19 and MSMEs

    • The MSMEs were already struggling — in terms of declining revenues and capacity utilization — in the lead-up to the Covid-19 crisis.
    • The total lockdown has raised a question mark on workers payment primarily because these firms mostly transact on cash. That explains the job losses.
    • The problem with most small Indian businesses is that they operate on thin margins and don’t have the deep financial resources to survive a significant dip in cash flows.
    • So, when an unexpected event like a lockdown happens and MSMEs can’t sell/produce their goods or services, it also means for many they can’t meet their monthly expenses – this includes costs like paying salaries to their employees.

    Fiscal stimulus package to MSMEs under Atmanirbhar Bharat Abhiyan

    Finance Minister has announced the first tranche of the Atmanirbhar Bharat Abhiyan economic package. The main thrust of the announcements was a relief to Medium, Small, and Micro Enterprises (MSMEs) in the form of a massive increase in credit guarantees to them.

    What is the package about?

    Instead of directly infusing money into the economy or giving it directly to MSMEs in terms of a bailout package, the government has resorted to taking over the credit risk of MSMEs.

    1) 100% credit guarantee

    • Firstly, it will give a 100% credit guarantee for Rs 3 lakh crore worth of collateral-free loans to MSMEs that were doing fine before the pandemic hit and are now in trouble.
    • This deal will only apply to small businesses that already had an outstanding loan of Rs 25 crore or those with a turnover of less than Rs 100 crore.
    • Thus, banks don’t have to worry about potential NPAs – that headache is transferred to the government.

    2) Subordinate debt scheme

    • The second measure is a ‘subordinate debt scheme’ worth Rs 20,000 crore and is mainly for MSMEs who are already struggling with debt and are unlikely to get fresh funding by themselves.
    • This scheme will allow banks and NBCs to give loans to MSMEs which are already deemed as ‘stressed’ and are thus less credit-worthy.

    3) Availability of Funds

    • The final step involves the government creating a Rs 50,000-crore fund which will infuse equity into “viable” MSMEs, thus helping them to expand and grow.
    • The basic idea behind this is that MSMEs will keep their businesses afloat until they are able to operate at pre-pandemic levels.
    • By doing this, the government also hopes to protect the employment that MSMEs create and thus save jobs.

    Government schemes to promote MSMEs

    1. Udyami Mitra Portal: launched by SIDBI to improve accessibility of credit and handholding services to MSMEs.
    2. MSME Sambandh: To monitor the implementation of the public procurement from MSMEs by Central Public Sector Enterprises.
    3. MSME Samadhaan: MSME Delayed Payment Portal –– will empower Micro and Small entrepreneurs across the country to directly register their cases relating to delayed payments by Central Ministries/Departments/CPSEs/State Governments.
    4. Digital MSME Scheme: It involves usage of Cloud Computing where MSMEs use the internet to access common as well as tailor-made IT infrastructure
    5. Revamped Scheme of Fund for Regeneration Of Traditional Industries (SFURTI): organizes traditional industries and artisans into clusters and make them competitive by enhancing their marketability & equipping them with improved skills.
    6. A Scheme for Promoting Innovation, Rural Industry & Entrepreneurship (ASPIRE): creates new jobs & reduce unemployment, promotes entrepreneurship culture, facilitates innovative business solution etc.
    7. Micro & Small Enterprises Cluster Development Programme (MSE-CDP) – adopts cluster development approach for enhancing the productivity and competitiveness as well as capacity building of MSEs.
    8. Credit Linked Capital Subsidy Scheme (CLCSS) is operational for upgradation of technology for MSMEs.

    Way Forward

    • Focused regulatory and structural changes which will improve access, ease the transition to the formal sector and increase consumer education and protection are necessary.
    • In the long term, once these regulatory issues are addressed, sanctioned loans will be disbursed more easily and private investment will be boosted, creating a virtuous cycle for MSMEs in the country.
    • To minimize the false rejections of good applicants, routine audits of all loan applications on random sampling basis must be undertaken by RBI and administrative action taken against malafide omissions resulting in unethical denial of loans to deserving MSMEs.
    • The problems faced by MSMEs need to be considered in a disaggregated manner for successful policy implementation as they produce very diverse products, use different inputs and operate in distinct environments.
    • In general, there is a need for tax provisions and laws that are not only labor-friendly but also entrepreneur-friendly.
    • More importantly, there is a need for skill formation and continuous upgrade both for labor and entrepreneurs.

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  • Account aggregators

    Context

    Account Aggregators will enable the use and enrich the quality of information needed for lenders to extend loans without collateral back-up.

    Issue of preference for a collateralised loan in India

    • Demand for credit in India far outstrips institutional supply.
    • Financial Service Providers (FSPs) are well aware of this demand.
    • And they have been looking for ways to provide credit without collateral back-up.
    • Historically, financial service providers (FSPs) like banks and non-bank finance companies (NBFCs) have relied on collateral while making lending decisions.
    • In the absence of collateral pledges, the only way to assess a consumer’s willingness and ability to repay is by examining the prospective borrower’s cash flows.
    • Your bank account statement is a digital representation of your financial life.
    • However, this bank account statement-driven process is highly manual, time-consuming, expensive and fraught with potential for abuse.
    • These shortcomings have held back cash-flow based lending for too long in India.
    •  Borrowers in the country have been underserved because of the preference for collateralized loans.
    • Both FSPs and consumers are in dire need of a seamless digital way of sharing account information.

    Account Aggregator (AA) framework

    • The account aggregator framework announced by the Reserve Bank of India (RBI) promises to solve these problems.
    • It aims to make financial data sharing as easy as making a Unified Payments Interface (UPI) transfer.
    • This is the promise of account aggregation, as envisaged by RBI.
    • Account aggregators (AAs), with their user interface, will play a pivotal role in closing the trust deficit between FSPs and consumers.

    Fenefits of Account Aggregator would work

    • User control over data: They permit users to control who gets access to their data, track and log its movement and reduce the potential risk of leakage in transit.
    • A single-window format allows user-friendly data movement and reduces the need for physical transfers and post-facto attestations.
    • Industry-standard for consent: AAs create a default industry standard for consent that cuts through the dense fine print buried in most privacy policies.
    • Wider data points to rely on: With the security of this data as a given, AAs allow lenders (or other FSPs for that matter) to rely on a wider selection of data points to determine the trustworthiness of a borrower.
    • Through AAs, FSPs have a chance to provide cash-flow based credit, personalized financial management tools, robo-advisory services and many more innovative financial products and services to a wider cross-section of people.

    Conclusion

    By incorporating security, transparency and agility into data sharing, AAs could usher in the most significant transformation of India’s fintech landscape yet.

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  • Streak Daily Compilation of Questions & Videos: Aug 23, 2021

    Maintaining consistency is one of the biggest issues faced by IAS Aspirants. Streak’s initiative is to help Aspirants in their day-to-day preparation. You can follow the monthly, weekly, and daily timetables and continue this streak until you find yourself on the final list.

    Please register for Streak free initiative through this link:- https://www.civilsdaily.com/course/streak-daily-initiative/

    You will get following study material:-

    1. Questions (PDF).
    2. RSTV/Yojana monthly notes (PDF).
    3. Burning issue (PDF).
    4. Subject specific (PDF).
    5. Mentor’s phone call for support & encouragement.

    _______________________________________________

    I. UPSC Daily Study Plan For 2021 and 2022 || STREAK

    II. CSAT for UPSC Prelims || Free CSAT Sessions by Civilsdaily

    III. UPSC PRELIMS-2021: Science & Technology Current Affairs Most Probable Questions

    Q1) Which of the following statements are correct with respect to Nuclear Medicines

    1. It uses small amounts of radioactive materials called radiotracers that are typically injected into the bloodstream, inhaled or swallowed.
    2. Hyperthyroidism, thyroid cancer, and bone pain from some types of cancer are few diseases treated with nuclear medicine.

    Select the correct answer using the codes given below:

    (a) 1 only

    (b) 2 only 

    (c) Both 1 and 2 

    (d) Neither 1 nor 2

    Q2) Consider the following statements with respect to Einsteinium

    1. It was discovered in the debris of the first atomic bomb “Little Boy” that was dropped over the city of Hiroshima, Japan.
    2. It is a naturally occurring element which has radioactive properties.

    Which of the statement(s) given above is/are incorrect?
    (a) 1 Only
    (b) 2 Only
    (c) Both 1 and 2
    (d) Neither 1 nor 2

    Q3) Consider the following statements about Trans fat

    1. Trans fat are saturated fatty acids that come from either natural or industrial sources.
    2. It is industrially produced by adding hydrogen to vegetable oil converting the liquid into a solid, resulting in “partially hydrogenated” oil (PHO). 
    3. FSSAI has notified that Trans fat in oil and fats to be limited to 3% in all fats and oils by 2021 and 2 % by January 2022.

    Which of the above statement(s) is/are correct?

    (a) 1 and 2 only

    (b) 2 and 3 only

    (c) 1 and 3 only

    (d) All of the above

    Q4) Consider the following statements about Vigyan Jyoti programme

    1. It is an initiative by the Department of Science and Technology.
    2. It is to encourage girls to take interest in Science, Technology, Engineering and Mathematics (STEM). 

    Which of the above statement(s) is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    Q5) Consider the following statements with respect to Arjun Main Battle Tank MK-1A

    1. It is jointly designed, developed and manufactured by DRDO and Lockheed Martin, an US corporation. 
    2. It has a computer-controlled integrated fire control system with stabilised sighting that works in all lighting conditions.

    Which of the statement(s) given above is/are correct?

    (a) 1 only

    (b) 2 only

    (c) Both 1 and 2

    (d) Neither 1 nor 2

    IV. UPSC PRELIMS-2021: Most Probable Questions for UPSC Prelims 2021

    Q1) Select the correct statement/s from the following statements. 

    1. Both Covid-19 and Swine flu are caused due to viruses from non-human hosts.
    2.  Both are respiratory viruses that spread through contact.
    3. Both are zoonotic diseases

    Which of above statement are true?

    A. 1  and 2 only

    B. 2 and 3 only

    C. 1 and 3 only

    D. All of them

    Q2) Which of the following tests are being used for testing COVID-19? 

    1. Rapid Antigen Test (RAT) 
    2. Reverse transcription polymerase chain reaction (RT-PCR) test 
    3. Serology Test 
    4. TrueNat test 
    5. ELISA test

    Select the correct answer using the code given below.

    (a) 1, 2, and 4 only 

    (b) 1, 2, and 3 only 

    (c) 4 and 5 only 

    (d) 1, 2, 3, 4 and 5

    Q3) Select the correct statement/s from the following statements with respect to Angiotensin Converting Enzyme 2 (ACE2). 

    1. ACE2 is a protein on the surface of many cell types. 
    2. 2. The SARS-CoV-2 virus binds to ACE2, using the spike like protein on its surface.

    Which of above statements is/are true?

    A. 1 only

    B. 2 only

    C. 1 and 2 

    D. None of them

    Q4) Consider the following statements in context to “happy hypoxia” sometimes seen in news. 

    1. This condition is characterized by extremely low blood oxygen levels in humans. 
    2. Such patients show signs of breathlessness. 
    3. Patients with such a condition live in great distress. 

    Select the correct code from the codes given below.

    A. 1  and 2 only

    B. 2 and 3 only

    C. 1 only

    D. All of them

    Q5) Consider the following statements about ZyCoV-D

    1. It is first Covid vaccine approved for Children in India
    2. It is fully Funded by Department of Biotech under its Covid Suraksha Mission
    3. It is also a two dose vaccine
    4. It is administered intra-dermal. 

    Which of above statements are true?

    A. 1, 2 and 3 only

    B. 2, 3 and 4 only

    C. 1, 3 and 4 only

    D. 1 and 4 only

    V. Daily Dose: Complete Snapshots of Everyday News

  • Important articles & schedules of Constitution/Fundamental Rights

     


    17th Apr 2021

    The Constitution of India is the supreme law of India. The document lays down the framework demarcating fundamental political code, structure, procedures, powers, and duties of government institutions and sets out fundamental rights, directive principles, and the duties of citizens. 

    It was adopted by the Constituent Assembly of India on 26 November 1949 and became effective on 26 January 1950. The constitution replaced the Government of India Act 1935 as the country’s fundamental governing document, and the Dominion of India became the Republic of India. To ensure constitutional autonomy, its framers repealed prior acts of the British parliament in Article 395. 

    The constitution declares India a sovereign, socialist, secular, democratic republic, assuring its citizens justice, equality and liberty, and endeavours to promote fraternity. The original 1950 constitution is preserved in a helium-filled case at the Parliament House in New Delhi. The words “secular” and “socialist” were added to the preamble in 1976 during the emergency.

    The Indian constitution is the world’s longest for a sovereign nation. At its enactment, it had 395 articles in 22 parts and 8 schedules. At about 145,000 words, it is the second-longest active constitution – after the Constitution of Alabama – in the world.

    Articles in Indian Constitution: As the written constitution is a compact document like a book, it has various parts, parts have various chapters, chapters have various articles.

    The constitution has a preamble and 395 articles, which are grouped into 25 parts. With 12 schedules and five appendices, it has been amended 103 times; the latest amendment became effective on 14 January 2019. Despite various amendments, the number of articles in the Constitution still remains 395. There is nothing like Article 396. The new articles are always inserted in between i.e. Article 31A.

    IMPORTANT TITBIT:  If counted separately there are 444 Articles but in the Constitution of India there are only 396 Articles. The rest are merely clauses or sub-clauses added later. The reason behind this is that there is a rule that no one can alter the basic structure of the COI. Now a problem came up, which was how to include more articles as you cannot add a 397th article as it would be against the Basic Structure Doctrine, so a solution that came up, which was that to include the new articles in clauses or sub-clauses of the existing articles.

    Here are the lists of various important Articles of the Indian Constitution: 
    S.No  
    Article  
    Deals with
    1 1 Name and Territory of Union
    2 3 New States Formation, Alteration of Boundaries, etc.
    3 13 Laws inconsistent with or in derogation of the Fundamental Rights
    4 14 Equality before Law (popularly known as Right to Equality)
    5 15 Prohibition of Discrimination (on basis of religion, race, caste, sex or place of birth)
    6 16 Equality in case of Public Employment
    7 17 Abolition of Untouchability
    8 18 Abolition of Titles
    9 19 Protection of Certain Rights to Freedom (popularly known as Right to Freedom)
    10 19 (a) Freedom of Speech & Expression
    11 19 (b) Right to Peaceful Assembly
    12 19 (c) Freedom of Association
    13 19 (d) Right to Move Freely through India
    14 19 (e) Freedom of Settlement & Residence
    15 19 (f) (Omitted as a fundamental right – governed by article 300A.) Right to Own Personal Property.
    16 19 (g) Freedom to Practise any Profession, Occupation, Trade or Business
    17 21 Right to Life and Personal Liberty
    18 21A Right to Education
    19 23 Prohibition of Human Trafficking and Forced Labour
    20 24 Prohibition of Child Labour
    21 25 Freedom to Practise & Propagate Religion Freely
    22 29 Protection of Interests of Minorities
    23 32 Remedies for enforcement of Fundamental Rights including writs
    24 44 Uniform Civil Code
    25 50 Separation of Judiciary from Executive
    26 51 Promotion of International Peace and Security
    27 51A Fundamental Duties
    28 72 Powers of President to Grant Pardons etc.
    29 76 Attorney-General of India
    30 78 Duties of Prime Minister
    31 85 Sessions of Parliament, Prorogation and Dissolution
    32 93 The Speaker & Deputy Speaker of Lok Sabha
    33 100 Voting in Houses
    34 105 Powers, Privileges, etc. of Members of Parliament
    35 106 Salaries and Allowances of Members of Parliament
    36 108 Joint Sitting of both Houses of Parliament
    37 109-110 Money Bills
    38 112 Budget
    39 123 President’s Power to Promulgate Ordinance while Parliament in Recess
    40 127 Appointment of ad hoc Judges in the Supreme Court
    41 139 Supreme Court’s Powers to Issue Certain Writs
    42 141 Supreme Court’s Law Binding on All Courts
    43 148-149 Comptroller and Auditor-General of India
    44 155 Appointment of Governor
    45 161 Power of Governors to Grant Pardon etc.
    46 165 Advocate-General for the State
    47 167 Duties of Chief Minister
    48 224 Appointment of Additional & Acting Judges in High Courts
    49 224A Appointment of Retired Judges in High Courts
    50 226 Power of High Courts to issue writs
    51 280 Finance Commission
    52 312 All India Services
    53 324 Election Commission
    54 335 SCs and STs claim to Services and Posts
    55 343 Official Language
    56 352 National Emergency
    57 356 President’s Rule in case of Failure of Constitutional Machinery in States
    58 360 Financial Emergency
    59 368 Power of Parliament to Amend the Constitution
    60 370 Temporary provisions with respect to the state of Jammu and Kashmir
    61 392 Power of the President to remove difficulties

    Schedules of the Indian Constitution

    Like a book contains appendices to explain things and provide extra info, the constitution contains various schedules. They are Lists that categorize and tabulate bureaucratic activity and policy of the Government. They are kept separate because it is a lengthy document and hence, not included in the original text of constitution but they are very much part of the constitution. 

    Important Titbits:

    1. Originally they were 8 in number, now they are 12. 
    2. The 4 new schedules were added: IX through the 1st Constitution Amendment Act 1951); X through Anti-Defection Law 52nd CAA 1985; XI through the 73rd CAA Panchayati Raj 1992 and XII through the 74th CAA Municipality 1992.
    3. Matters added to the 9th schedule after 24th April 1973 (Kesavananda Bharati Case) are not immune to judicial review (I.R. Coelho case)

    Schedules of Indian Constitution

    Numbers  
    Subject Matter
    First Schedule
    1. Names of the States and their territorial jurisdiction.
    2. Names of the Union Territories and their extent.
    Second Schedule Provisions relating to the emoluments, allowances, privileges and so on of:
    1. The President of India
    2. The Governors of States
    3. The Speaker and the Deputy Speaker of the Lok Sabha
    4. The Chairman and the Deputy Chairman of the Rajya Sabha
    5. The Speaker and the Deputy Speaker of the Legislative Assembly in the states
    6. The Chairman and the Deputy Chairman of the Legislative Council in the states
    7. The Judges of the Supreme Court
    8. The Judges of the High Courts
    9. The Comptroller and Auditor-General of India
    Third Schedule Forms of Oaths or Affirmations for:

    1. The Union ministers

    2. The candidates for election to the Parliament

    3. The members of Parliament

    4. The judges of the Supreme Court

    5. The Comptroller and Auditor-General of India

    6. The state ministers

    7. The candidates for election to the state legislature

    8. The members of the state legislature

    9. The judges of the High Courts

    Fourth Schedule Allocation of seats in the Rajya Sabha to the states and the union territories.
    Fifth Schedule Provisions relating to the administration and control of scheduled areas and scheduled tribes.
    Sixth Schedule Provisions relating to the administration of tribal areas in the states of Assam, Meghalaya, Tripura and Mizoram.
    Seventh Schedule Division of powers between the Union and the States in terms of List I (Union List), List II (State List) and List III (Concurrent List). Presently, the Union List contains 100 subjects (originally 97), the state list contains 61 subjects (originally 66) and the concurrent list contains 52 subjects (originally 47).
    Eighth Schedule Languages recognized by the Constitution. Originally, it had 14 languages but presently there are 22 languages. They are: Assamese, Bengali, Bodo, Dogri (Dongri), Gujarati, Hindi, Kannada, Kashmiri, Konkani, Mathili (Maithili), Malayalam, Manipuri, Marathi, Nepali, Oriya, Punjabi, Sanskrit, Santhali, Sindhi, Tamil, Telugu, and Urdu. Sindhi was added by the 21st Amendment Act of 1967; Konkani, Manipuri and Nepali were added by the 71 st Amendment Act of 1992; and Bodo, Dongri, Maithili and Santhali were added by the 92nd Amendment Act of 2003.
    Ninth Schedule Acts and Regulations (originally 13 but presently 282) 19 of the state legislatures dealing with land reforms and the abolition of the zamindari system and of the. Parliament dealing with other matters. This schedule was added by the 1st Amendment (1951) to protect the laws included in it from judicial scrutiny on the ground of violation of fundamental rights. However, in 2007, the Supreme Court ruled that the laws included in this schedule after April 24, 1973, are now open to judicial review.
    Tenth Schedule Provisions relating to the disqualification of the members of Parliament and State Legislatures on the ground of defection. This schedule was added by the 52nd Amendment Act of 1985, also known as Anti-defection Law.
    Eleventh Schedule Specifies the powers, authority and responsibilities ofPanchayats. It has 29 matters. This schedule was added by the 73rd Amendment Act of 1992.
    Twelfth Schedule Specifies the powers, authority, and responsibilities of Municipalities. It has 18 matters. This schedule was added by the 74th Amendment Act of 1992.

    Fundamental Rights

    • Enshrined in Part-III of Indian Constitution, Fundamental Rights are the basic human rights guaranteed by the Constitution of India. The six fundamental rights include Right to Equality, Right to freedom, Right against exploitation, Right to freedom of Religion, Cultural and Educational Rights and Right to constitutional Remedies.
    • Fundamental Rights is one of the important topics in Indian polity subject in UPSC Syllabus. In this article, we will touch upon some of the most important points from this topic. We’ll also discuss some of the previously asked questions centered around Fundamental Rights.
    • Originally Right to property (Article 31) was also included in the Fundamental Rights. However, by the 44th Constitutional Ammendment Act, 1978, it was deleted from the list of Fundamental Rights and made a legal right under Article 300A in Part XII of the constitution.

    Fundamental Rights in India (Article 12-35)

    • The development of Fundamental Rights in India is heavily inspired by United State’s Bill of Rights. These rights are included in the constitution because they are considered essential for the development of the personality of every individual and to preserve human dignity.
      • Fundamental Rights are included in Part-III of the Indian constitution which is also known as Magna Carta of Indian Constitution.
      • These rights are called fundamental rights because they are justiciable in nature allowing persons to move the courts for their enforcement, if and when they are violated

    Features of the Fundamental Rights

    • FRs are protected and guaranteed by the constitution.
    • FRs are NOT sacrosanct or absolute: in the sense that the parliament can curtail them or put reasonable restrictions for fixed period of time. However, the court has the power to review the reasonablity of the restrictions.
    • FRs are justifiable: The constitution allow the person to move directly to the Surpreme Court for the reinforcement of his fundamental right as and when they are violated or restricted.
    • Suspension of Fundamental Rights: All the Fundamental Rights are suspended during National Emergencies except the rights guaranteed under Article 20 and 21.
    • Restriction of Fundamental Rights: The Fundamental Rights can be restricted during the military rule in any particular area.

    Important Articles Related To Fundamental Rights

    Let us now look at some of the important articles related to the Fundamental Rights in India:

    Article 12: Defines the State

    Article 12 of the Indian Constitution defines The State as:

    • The Government and Parliament of India,
    • The Government and legislatures of the states,
    • All local authorities and
    • Other authorities in India or under the control of the Government of India.

    Article 13: Defines Laws Inconsistent with or In derogation of Fundamental Rights

    • Article 13 of the Indian Constitution states that:
    • All laws in force in the territory of India immediately before the commencement of this Constitution, in so far as they are inconsistent with the provisions of this Part, shall, to the extent of such inconsistency, be void.
    • The State shall not make any law which takes away or abridges the rights conferred by this Part and any law made in contravention of this clause shall, to the extent of the contravention, be void.
    • In this article, unless the context otherwise required, –

    (a) “law” includes any Ordinance, order, bye-law, rule, regulation, notification, custom or usage having in the territory of India the force of law;

    (b)“laws in force” includes laws passed or made by a Legislature or other competent authority in the territory of India before the commencement of this Constitution and not previously repealed, notwithstanding that any such law or any part thereof may not be then in operation either at all or in particular areas.

    • Nothing in this article shall apply to any amendment of this Constitution made under article 368.

    Classification of Fundamental Rights

    The fundamental rights are classified into the following six categories:

    Article 12: Defines the State

    Article 12 of the Indian Constitution defines The State as:

    • The Government and Parliament of India,
    • The Government and legislatures of the states,
    • All local authorities and
    • Other authorities in India or under the control of the Government of India.

    Article 13: Defines Laws Inconsistent with or In derogation of Fundamental Rights

    • Article 13 of the Indian Constitution states that:
    • All laws in force in the territory of India immediately before the commencement of this Constitution, in so far as they are inconsistent with the provisions of this Part, shall, to the extent of such inconsistency, be void.
    • The State shall not make any law which takes away or abridges the rights conferred by this Part and any law made in contravention of this clause shall, to the extent of the contravention, be void.
    • In this article, unless the context otherwise required, –

    (a) “law” includes any Ordinance, order, bye-law, rule, regulation, notification, custom or usage having in the territory of India the force of law;

    (b)“laws in force” includes laws passed or made by a Legislature or other competent authority in the territory of India before the commencement of this Constitution and not previously repealed, notwithstanding that any such law or any part thereof may not be then in operation either at all or in particular areas.

    • Nothing in this article shall apply to any amendment of this Constitution made under article 368.

    Classification of Fundamental Rights

    The fundamental rights are classified into the following six categories:

    (1) Right to Equality

    Art 14 – Equality before Law

    Art 15 – Prohibition of Discrimination

    Art 16 – Equality of Opportunity in Public Employment

    Art 17 – Abolition of Untouchability

    Art 18 – Abolition of Titles

    (2) Right to Freedom

    Art 19 – Protection of 6 Rights:

    • Right to freedom of speech and expression.
    • Right to assemble peaceably and without arms.
    • Right to form associations or unions or co-operative societies.
    • Right to move freely throughout the territory of India.
    • Right to reside and settle in any part of the territory of India.
    • Right to practice any profession or to carry on any occupation, trade or business.

    Art 20 – Protection in Respect of Conviction for Offences

    Art 21 – Protection of Life and Personal Liberty

    Art 21-A Right to Education

    Art 22 – Protection against Arrest and Detention

    (3) Right against Exploitation          

    Art 23 – Prohibition of Human Trafficking and Forced Labor

    Art 24 – Prohibition of Child Labor

    (4) Right to Freedom of Religion   

    Art 25 – Freedom of Conscience, Profession, Practice, and Propagation

    Art 26 – Freedom to Manage Religious Affairs

    Art 27 – Freedom from Taxation for Promotion of a Religion

    Art 28 – Freedom from Attending Religious Instruction

    (5) Educational and Cultural Rights

    Art 29 – Protection of Interests of Minorities

    Art 30 – Right of Minorities to Establish and Administer Educational Institutions

    (6) Right to Constitutional Remedies         

    Art 32 – Right to remedies for the enforcement of the fundamental rights using five writs:

    • Habeas Corpus – to direct the release of a person detained unlawfully.
    • Mandamus – to direct a public authority to do its duty.
    • Quo Warranto – to direct a person to vacate an office assumed wrongfully.
    • Prohibition – to prohibit a lower court from proceeding on a case.
    • Certiorari – power of the higher court to remove a proceeding from a lower court and bring it before itself.

    Art 33 – Empowers the Parliament to restrict or abrogate the fundamental rights of the ‘Members of the Armed Forces, paramilitary forces, police forces, intelligence agencies, and analogous forces

    Art 34 – Provides for the restrictions on fundamental rights while martial law (military rule) is in force

    Art 35 – Empowers the Parliament to make laws on Fundamental Rights

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