Webinar Date: 1st August 2021

Timings: 7 PM

As complicated as it may appear, the UPSC Civil services exam is more about carrying nerves. It’s also about maintaining discipline for the time being and till you succeed. Nor the subjects are esoteric or unheard of. But the character for one to be able to sacrifice the beauty called life and family is rare. Your stay in the game with the zeal to come out winning is very important.

Philosophy aside, but keeping the practical elements in mind, let’s dig a little deeper.  Also, find out what it takes for one to jump that threshold and what our toppers have said. Why have they not been able to clear earlier and what changes have they made to succeed?. These are the most sought-after info and are available on the internet. But from an individual’s perspective, one can not ignore his/her inconclusiveness due to lack of a distinct plan or direction.

Hence, we are coming up with an open session. To counter myths and give some facts which will help you see the light on the other side of the tunnel about the exam.

In this open session, we are going to give a clear insight which is important for one to save time, energy, and effort. Which might otherwise be getting wasted in the wrong direction? This is important because for an individual the first year is the year with maximum energy, expectation from self, go-getter attitude, etc..

We tend to get lost in the sea of advice and sources of studies. To save one from such torrents of information, it’s sometimes said that we need to better know “what not to follow than what to follow”.

Anyways such hypotheses aside, your time in this open session is going to be full of interaction. Some previous year aspirants are also expected to be present. We do expect that all your confusion about the exam will get clear.

Attendees can expect some takeaways too in the form of softcopies relevant to the exam. They will be available to you via email once you have done the registration for the open session.

In this webinar, Ajay Verma, Mentor Head at Civilsdaily will give you an overview:

– What UPSC expects out of you?

– Avoiding Mistakes that can cost you an attempt?

– What to do to master the IAS-Exam?

– How to clear the exam -Step-by-Step learning plan?

– An interactive Q&A session with Current Students at Civilsdaily

– How to clear the exam on the very first attempt?

– Important Civilsdaily softcopies takeaway for exam preparation.

A quick bit about Ajay :

Ajay has firsthand experience with 6 Mains and 3 interviews of UPSC. He has gathered experience working as Mentor-Head at CivilsDaily for the past 3 Yrs and helped many cross the threshold.

In the recent past, worldwide interest in cryptocurrency has risen. A recent survey says 86% of the central banks across the world are actively researching cryptocurrency while 60% are engaged in CBDC. Against this backdrop, the Reserve Bank of India (RBI) discussed its “phased implementation strategy” of a Central Bank Digital Currency (CBDC).

Central Bank Digital Currency (CBDC)

• CBDC is a central bank issued digital currency which is backed by some kind of assets in the form of either gold, currency reserves, bonds and other assets, recognised by the central banks as a monetary asset.

• The present concept of CBDCs was directly inspired by Bitcoin, but a CBDC is different from virtual currency and cryptocurrency.
• Cryptocurrencies are not issued by a state and lack the legal tender status declared by the government.

What is Currency chest?

Currency in India is managed by Currency chest. Currency chest is a place where the Reserve Bank of India (RBI) stocks the money meant for banks and ATMs. These chests are usually situated on the premises of different banks but administrated by the RBI.

Why India needs a digital rupee?

• Online transactions: India is a leader in digital payments, but cash remains dominant for small-value transactions.
• High currency in circulation: India has a fairly high currency-to-GDP ratio.
• Cost of currency management: An official digital currency would reduce the cost of currency management while enabling real-time payments without any inter-bank settlement.

Why is CBDC preferred over Cryptocurrency?

• Sovereign guarantee: Cryptocurrencies pose risks to consumers.  They do not have any sovereign guarantee and hence are not legal tender.
• Market volatility: Their speculative nature also makes them highly volatile.  For instance, the value of Bitcoin fell from USD 20,000 in December 2017 to USD 3,800 in November 2018.
• Risk in security: A user loses access to their cryptocurrency if they lose their private key (unlike traditional digital banking accounts, this password cannot be reset).
• Malware threats: In some cases, these private keys are stored by technical service providers (cryptocurrency exchanges or wallets), which are prone to malware or hacking.
• Money laundering: Cryptocurrencies are more vulnerable to criminal activity and money laundering.  They provide greater anonymity than other payment methods since the public keys engaging in a transaction cannot be directly linked to an individual.
• Regulatory bypass: A central bank cannot regulate the supply of cryptocurrencies in the economy.  This could pose a risk to the financial stability of the country if their use becomes widespread.
• Power consumption: Since validating transactions is energy-intensive, it may have adverse consequences for the country’s energy security (the total electricity use of bitcoin mining, in 2018, was equivalent to that of mid-sized economies such as Switzerland).

Features of CBDC

• High-security instrument: CBDC is a high-security digital instrument; like paper banknotes, it is a means of payment, a unit of account, and a store of value.
• Uniquely identifiable: And like paper currency, each unit is uniquely identifiable to prevent counterfeit.
• Liability of central bank: It is a liability of the central bank just as physical currency is.
• Transferability: It’s a digital bearer instrument that can be stored, transferred, and transmitted by all kinds of digital payment systems and services.

Key benefits offered

• Faster system: CBDC can definitely increase the transmission of money from central banks to commercial banks and end customers much faster than the present system.
• Financial inclusion: Specific use cases, like financial inclusion, can also be covered by CBDC that can benefit millions of citizens who need money and are currently unbanked or banked with limited banking services
• Monetary policy facilitation: The move to bring out a CBDC could significantly improve monetary policy development in India.
• Making of a regional currency: In the cross border payments domain, India can take a lead by leveraging digital Rupee especially in countries such as Bhutan, Saudia Arabia and Singapore where NPCI has existing arrangements.

Others:

• It is efficient than printing notes (cost of printing, transporting, and storing paper currency)
• It reduces the risk of transactions
• It makes tax collection transparent
• Prevents money laundering

Issues involved with CBDC

• Innovation with centralization: The approach of bringing a sovereign digital currency stands in stark contrast to the idea of decentralization.
• Liability on RBI:  when bank customers wish to convert their deposits into digital rupee, the RBI will have to take these liabilities from the books of banks and onto its own balance sheet.
• Inflationary risk: Central banks would indulge in issuing more digital currencies which could potentially trigger higher inflation.
• User adoption: User adoption could also pose a major setback for the smooth roll out of the CBDC in India. The main challenges would always be user adoption and security.
• Reduced savings: Many, including various central bankers, fear that people may begin withdrawing money from their bank accounts as digital currencies issued by Central banks become more popular.
• Volatility: the risk is higher and there is more price volatility and lesser acceptance as a money instrument globally, unless the trust factor and investor protection factors change.

Way forward

• The launch of CBDCs may not be a smooth affair and still requires more clarity in India. There are still a lot of misconceptions about the concept of digital currency in the country.
• The effectiveness of CBDCs will depend on aspects such as privacy design and programmability.
• There is a huge opportunity for India to take a lead globally via a large-scale rollout and adoption of digital currencies.

Conclusion

• RBI is creating small pivot for experimenting CBDC where financial transaction is happening through digital currency.
• CBDC has to be a gradual process, various nuances has to be taken care not only about its utilization but also about the impact it will make.
• More clarity on the concept in the days to come will be the key for CBDCs and much will depend on how the whole concept will evolve in India which is predominantly a paper currency market.

A dream does not become reality through magic; it takes sweat, determination, and hard work. 

The Streak Daily Initiative is aimed to help out UPSC 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.

So, let us look at Today’s activities.

For full-time Aspirants

1. Supreme Court
2. Judicial review
3. Judicial Activism
4. PIL

For working Aspirants

1. Parliamentary Committees and Forums
2. State Legislature

Target Assignment by Ravi Sir:

Try these Prelims Questions :

1.Under Article 71 of the constitution, the exclusive forum for adjudicating disputes relating to the election of the President and the Vice-President is the Supreme Court.

2.Disputes related to the elections of the Prime Minister and the Speaker of the House of the People are determined by an election petition before the Supreme Court.

Which of the statements given above is/are correct?
A 1 only

B 2 only

C Both 1 and 2

D Neither 1 nor 2

Q2.With reference to the Constitution of India, consider the following statements:

1. No High Court shall have the jurisdiction to declare any central law to be constitutionally invalid.

2. An amendment to the Constitution of India cannot be called into question by the Supreme Court of India.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q3.The power to increase the number of judges in the Supreme Court of India is vested in

(a) the President of India

(b) the Parliament

(c) the Chief Justice of India

(d) the Law Commission

Q4.The power of the Supreme Court of India to decide disputes between the Centre and the States falls under its

(a) advisory jurisdiction

(b) appellate jurisdiction.

(c) Original jurisdiction

(d) writ jurisdiction

Q5.In India, Judicial Review implies

(a) the power of the Judiciary to pronounce upon the constitutionality of laws and executive orders.

(b) the power of the Judiciary to question the wisdom of the laws enacted by the Legislatures.

(c) the power of the Judiciary to review all the legislative enactments before they are assented to by the President.

(d) the power of the Judiciary to review its own judgments given earlier in similar or different cases.

Q6. Consider the following statements

1.The 44th Amendment to the Constitution of India introduced an Article placing the election of the Prime Minister beyond judicial review.

2. The Supreme Court of India struck down the 99th Amendment to the Constitution of India as being violative of the independence of the judiciary.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q7.Consider the following statements:

1.The Constitution of India defines its ‘basic structure’ in terms of federalism, secularism, fundamental rights, and democracy.

2.The Constitution of India provides for ‘judicial review’ to safeguard the citizens’ liberties and to preserve the ideals on which the Constitution is based.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q8.Public Interest Litigation (PIL) may be linked with 

(a) judicial review 

(b) judicial activism 

(c) judicial intervention 

(d) judicial sanctity

Q9.Which of these constitute Judicial Activism?

1. The judiciary plays an important role in upholding and promoting the rights of citizens in a country.

2. Maneka Gandhi Case

3. Cancellation of 2G spectrum licence

4. It made the Judicial process more participatory and democratic.

1. 1,2 and 3
2. 1,3 and 4
3. 2, 3 and 4
4. All of them

Video Discussion of Prelims Questions by Santosh Sir:

Try these Mains Questions :

Q: Is it possible to distinguish between judicial review and judicial activism in India? Has the judiciary shifted towards judicial activism? (15)

Q: Discuss how the appointment of judges in the supreme court still remains a controversial issue. (10)

Video Discussion of Mains Questions by Sukanya Ma’am:

Stay tuned with us for tomorrow’s targets.

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Visit our course page for further details

Questions for the Day:

Try these Mains Questions :

Q: Is it possible to distinguish between judicial review and judicial activism in India? Has the judiciary shifted towards judicial activism? (15)

Q: Discuss how the appointment of judges in the supreme court still remains a controversial issue. (10)

Try these Prelims Questions :

1.Under Article 71 of the constitution, the exclusive forum for adjudicating disputes relating to the election of the President and the Vice-President is the Supreme Court.

2.Disputes related to the elections of the Prime Minister and the Speaker of the House of the People are determined by an election petition before the Supreme Court.

Which of the statements given above is/are correct?
A 1 only

B 2 only

C Both 1 and 2

D Neither 1 nor 2

Q2.With reference to the Constitution of India, consider the following statements:

1. No High Court shall have the jurisdiction to declare any central law to be constitutionally invalid.

2. An amendment to the Constitution of India cannot be called into question by the Supreme Court of India.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q3.The power to increase the number of judges in the Supreme Court of India is vested in

(a) the President of India

(b) the Parliament

(c) the Chief Justice of India

(d) the Law Commission

Q4.The power of the Supreme Court of India to decide disputes between the Centre and the States falls under its

(a) advisory jurisdiction

(b) appellate jurisdiction.

(c) Original jurisdiction

(d) writ jurisdiction

Q5.In India, Judicial Review implies

(a) the power of the Judiciary to pronounce upon the constitutionality of laws and executive orders.

(b) the power of the Judiciary to question the wisdom of the laws enacted by the Legislatures.

(c) the power of the Judiciary to review all the legislative enactments before they are assented to by the President.

(d) the power of the Judiciary to review its own judgments given earlier in similar or different cases.

Q6. Consider the following statements

1.The 44th Amendment to the Constitution of India introduced an Article placing the election of the Prime Minister beyond judicial review.

2. The Supreme Court of India struck down the 99th Amendment to the Constitution of India as being violative of the independence of the judiciary.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q7.Consider the following statements:

1.The Constitution of India defines its ‘basic structure’ in terms of federalism, secularism, fundamental rights, and democracy.

2.The Constitution of India provides for ‘judicial review’ to safeguard the citizens’ liberties and to preserve the ideals on which the Constitution is based.

Which of the statements given above is/are correct?

(a) 1 only

(b) 2 only

(c) Both 1 and 2

(d) Neither 1 nor 2

Q8.Public Interest Litigation (PIL) may be linked with 

(a) judicial review 

(b) judicial activism 

(c) judicial intervention 

(d) judicial sanctity

Q9.Which of these constitute Judicial Activism?

1. The judiciary plays an important role in upholding and promoting the rights of citizens in a country.

2. Maneka Gandhi Case

3. Cancellation of 2G spectrum licence

4. It made the Judicial process more participatory and democratic.

1. 1,2 and 3
2. 1,3 and 4
3. 2, 3 and 4
4. All of them

Sukanya madam’s video would be out at 7:00 PM and Santosh sir would provide the video at 9:00 PM.

Watch this space for more updates exclusively for you.