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Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 16th June 2022

Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test - Click Here

[MOST TRUSTED] TLP (Phase II) - ONLINE FREE Initiative for UPSC Mains 2022 – Daily Mains Answer Writing Programme- Starting from 20th June!

“You play like you practice and practice how you play.”         Nothing encapsulates the importance of answer writing practice for UPSC than this quote. The tons of books that you have read, the loads of ideas that you have in mind and the numerous debates that you have won matter little if you haven’t held your pen for practice for at least 500 hours before the real Mains examination. When you practice answer writing, you tend to recreate what you are going to write in the real exam but in a less stressful setting. With hours of practice, you develop a habit – a kind of muscle memory that helps immensely in the real exam. In fact, with hours of practice in your preparation kitty, the real exam feels like another day of practice. We hope you must have understood the true essence of the quote in the context of UPSC.Now, let’s come to an important question – what makes a perfect practice for UPSC? Well, the answer is simple. You must practice questions that are either similar or at least a notch above than the UPSC standard. Then you must learn from your mistakes. But, how do you learn? You learn from high quality source of information. You also learn from expert feedback. You definitely learn from you peers. If there is any program that packs all these prerequisites of perfect practice into one, it is the Think, Learn and Perform (TLP) Flagship initiative of IASbaba We have been posting questions of unmatched quality, framed after rigorous research and analysis of evolving UPSC trends. We don’t frame questions for the sake of it. We are determined to test you the way UPSC does by posing questions that make you think hard, and connect the dots of your previous learning. Each day, you wake up to 5 high quality questions based on a pre-published micro plan. You write the answers and post them on IASbaba’s dedicated TLP platform. You get to see the answers of your peers. You also get access to meticulously prepared synopsis, a treasure trove for understanding the components you missed in your answers, and also a great source for future reference. To the extent possible, IASbaba’s expert evaluators share feedback on your answers and motivate you to continue the journey. We also encourage peer feedback. TLP as a platform, builds a strong social capital that students can leverage for their benefit. Over the years, TLP has become the most trusted program for answer writing practice for UPSC toppers. Please go through the testimonials of top rankers over the years to understand the impact that TLP has made on their preparation. What makes our initiative standout? The answer is straightforward – quality. Even though TLP is a free initiative, we never compromise on the quality of questions and synopsis that is posted on the platform. We rarely repeat or recycle the questions. In each preparation cycle, we create new questions after a lot of thought and analysis. We invest so much time and effort because we know what is at stake – your career.Therefore, come join the bandwagon. Be a part of the routine – a habit that increases your chances of success in UPSC manifold. You can’t afford to miss this. Download Schedule DEDICATED PORTAL FOR TLP This year onwards TLP will have a Dedicated Portal for Focused Preparation (tlpmains.iasbaba.com). There will be a separate dedicated portal similar to (RaRe Series) which students loved and appreciated. The Portal will help you stay focused and keep your preparation streamlined. The Registration link for the dedicated portal is given at the end of the post.We are charging a token amount of 10/- for registration to the dedicated portal. We are doing it because we want to create a community of sincere aspirants who are focused and motivated till the Mains Examination. Please don’t take it otherwise. It is our honest effort to give you the best and at the same time expect students to come with the same energy and dedication to the dedicated platform specially designed for YOU!Join our bandwagon, you won’t regret it. UPSC 2023 Aspirants are encouraged to participate as well. Register Now Note: If you have issues regarding program, please mail us on support@iasbaba.com OFFLINE TLP We have been getting a lot of requests from students to start TLP Daily Mains Answer Writing in Offline Mode. So we are finally here with the TLP OFFLINE. We hope that you make the best use of it.There are two slots where you can come to the Centre and write the answer.Slot 1 – 2 PM to 3 PMSlot 2 – 5 PM to 6 PMRs.2,500/- (Including Taxes) is being charged for the complete programme (20th June to 2nd September) as logistical charges that come with the Offline Tests.Please note that Evaluation is not part of the TLP Programme. Only Question Paper and Answer Booklets will be provided.You can write at any of IASbaba’s Offline Centres (DELHI, BENGALURU & LUCKNOW) Register Now For Offline Note: Offline Students need to Register at https://tlpmains.iasbaba.com/ as well in order to access the Synopsis and Compilations. If you have issues regarding program, please mail us on support@iasbaba.com Download Schedule NOTE FOR UPSC CSE 2023 ASPIRANTSThis is the best time for 2023 to start answer writing. We would request you to write answers every day even if you are writing crappy answers. By the end of the program, you would realize that you have completed Mains Syllabus and are able to write pretty decent answers.BestIASbaba Team

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 15th June 2022

Archives (PRELIMS & MAINS Focus) [su_box title="Agnipath scheme" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Government Schemes – Current Affairs Mains – GS 3 (Security) In News: The GoI unveiled its new Agnipath scheme for recruiting soldiers across the three services The soldiers recruited under the scheme will be called What is the Agnipath scheme? Under the new scheme, around 45,000 to 50,000 soldiers will be recruited annually, and most will leave the service in just four years. Of the total annual recruits, only 25 per cent will be allowed to continue for another 15 years under permanent commission. What is the eligibility criterion? The new system is only for personnel below officer ranks Under the Agnipath scheme, aspirants between the ages of 17.5 years and 21 years will be eligible to apply. The recruitment standards will remain the same, and recruitment will be done twice a year through rallies. What happens after selection? Once selected, the aspirants will go through training for six months and then will be deployed for three and a half years. During this period, they will get a starting salary of Rs 30,000, along with additional benefits which will go up to Rs 40,000 by the end of the four-year service. 30 per cent of their salary will be set aside under a Seva Nidhi programme, and the government will contribute an equal amount every month, and it will also accrue interest. At the end of the four-year period, each soldier will get Rs 11.71 lakh as a lump sum amount, which will be tax-free. They will also get an Rs 48 lakh life insurance cover for the four years. In case of death, the payout will be over Rs 1 crore, including pay for the unserved tenure. For those who are re-selected, the initial four-year period will not be considered for retirement benefits. Recruitment will begin within 90 days under the scheme which will bring “all India, all class” recruitment to the services. Benefits The average age in the forces is 32 years today, which will go down to 26 in six to seven years, the scheme envisions. It will create “future-ready” soldiers This is especially significant for the Army, where the regiment system has region and caste bases, and with time that will be eliminated to allow anybody from any caste, region, class or religious background to become part of existing regiments. The move will make the permanent force levels much leaner for the over 13-lakh strong armed forces in the country. This will, in turn, considerably reduce the defence pension bill, which has been a major concern for governments for many years. It will increase employment opportunities and because of the skills and experience acquired during the four-year service such soldiers will get employment in various fields. Source: Indian Express Previous Year Questions Q.1) With reference to Pradhan Mantri Kaushal Vikas Yojana, consider the following statements: (2018) It is the flagship scheme of the Ministry of Labour and Employment. It, among other things will also impart training in soft skills, entrepreneurship, financial and digital literacy. It aims to align the competencies of the unregulated workforce of the country to the National Skill Qualification Framework. Which of the statements given above is/are correct? 1 and 3 only 2 only 2 and 3 only 1, 2, and 3 [/su_box] [su_box title="Periodic Labour Force Survey (PLFS) for 2020-21" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Economy Current Affairs Mains – GS 3 (Economy) In News: Periodic Labour Force Survey (PLFS) for 2020-21 was released by the Ministry of Statistics and Programme Implementation Findings The unemployment rate saw a decrease of 0.6% and fell to 4.2% in 2020-21, compared with 4.8% in 2019-20 Rural areas recorded an unemployment rate of 3% and urban areas recorded an unemployment rate of 6.7%. The National Statistical Office (NSO) uses “rotational panel sampling design” in urban areas to assess the Labour Force Participation Rate (LFPR), Worker Population Ratio (WPR) and the unemployment rate, and visits selected households in urban areas four times. The LFPR, the percentage of persons in the labour force (that is, working or seeking work or available for work) in the population was 6% during 2020-21. It was 40.1% in the previous year. The WPR was 39.8%, an increase from 38.2% of the previous year. The migration rate is 28.9%. The migration rate among women was 48% and 47.8% in rural and urban areas, What is the Periodic Labour Force Survey? The NSO launched the Periodic Labour Force Survey (PLFS) in April 2017. The objective of PLFS is primarily twofold: To estimate the key employment and unemployment indicators namely Worker Population Ratio, Labour Force Participation Rate, Unemployment Rate in the short time interval of three months for the urban areas only in the Current Weekly Status (CWS) To estimate employment and unemployment indicators in both usual Status and CWS in both rural and urban areas annually. Key Terms Unemployment Rate (UR): It is defined as the percentage of persons unemployed among the persons in the labour force. Labour Force Participation Rate (LFPR): It is defined as the percentage of persons in the labour force (i.e. working or seeking or available for work) in the population. Worker Population Ratio (WPR): It is defined as the percentage of employed persons in the population. National Statistical Office It is the central statistical agency of the Government mandated under the Statistical Services Act 1980 under the Ministry of Statistics and Programme Implementation. It is responsible for the development of arrangements for providing statistical information services to meet the needs of the Government and other users for information on which to base policy, planning, monitoring and management decisions. Source: The Hindu Previous Year Questions Q.1) As per the NSSO 70th Round "Situation Assessment Survey of Agricultural Households", consider the following statements: (2018) Rajasthan has the highest percentage share of agricultural households among its rural households. Out of the total agricultural households in the country, a little over 60 percent belong to OBCs. In Kerala, a little over 60 percent of agricultural households reported to have received maximum income from sources other than agricultural activities. Which of the statements given above is/are correct? 2 and 3 only 2 only 1 and 3 only 1, 2 and 3 [/su_box] [su_box title="Haploptychius sahyadriensis " style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Geography In News: India’s newest recorded snail named after Western Ghats The Western Ghats of Maharashtra have yielded a carnivorous land snail new to the world of science. The Haploptychius sahyadriensis is endemic to the Vishalgad Conservation Reserve in Maharashtra’s Kolhapur district The Haploptychius sahyadriensis, recorded from the northern Western Ghats of Maharashtra, is the third member of the genus Haploptychius. The other two – H. andamanicus and H. pfeifferi – were recorded in the Andaman and Nicobar Islands in the 1860s. It is named after the type locality of the species in the northern part of the Western Ghats, which is Sahyadri in Sanskrit The ‘Sahyadri snail’ is distinguished from other Indian and Southeast Asia’s Haploptychius in having a sub-oblique helical shell, low spire and presence of a strong parietal lamella. The new species also has a unique genital anatomy Source: The Hindu [/su_box] [su_box title="LaMDA" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Science and Technology Mains – GS 3 (Science and Technology) In News: A senior engineer at Google claimed that the company’s artificial intelligence-based chatbot Language Model for Dialogue Applications (LaMDA) had become “sentient” The claims have spurred a debate on the capabilities and limitations of AI-based chatbots What is LaMDA? LaMDA is short for 'Language Model for Dialogue Applications', Google's modern conversational agent enabled with a neural network capable of deep learning. Google first announced LaMDA at its flagship developer conference I/O in 2021 as its generative language model for dialogue applications which can ensure that the Assistant would be able to converse on any topic. In simple terms, LaMDA can have a discussion based on a user’s inputs In 2022 Google announced LaMDA 2.0 which further builds on LaMDA 1.0. The new model can possibly take an idea and generate “imaginative and relevant descriptions”, stay on a particular topic even if a user strays off-topic, and can suggest a list of things needed for a specified activity. What is a neural network? A neural network is an AI tech that attempts to mimic the web of neurons in the brain to learn and behave like humans. Is the technology dangerous? The challenges of AI metamorphosing into sentient are far in the future; however, unethical AI perpetuating historical bias and echoing hate speech are the real dangers to watch for. While we imagine the machine to have no bias, AI software learning from historical data could inadvertently perpetuate discrimination against the marginalized community. Source: The Hindu Previous Year Questions Q.1) With the present state of development, Artificial Intelligence an effectively do which of the following? (2020) Bring down electricity consumption in industrial units. Create meaningful short stories and songs. Disease diagnosis. Text-to-Speech Conversion. Wireless transmission of electrical energy. Select the correct answer using the code given below: 1, 2, 3 and 5 only 1, 3 and 4 only (UPSC Answer Key) 2, 4 and 5 only 1, 2, 3, 4 and 5 [/su_box] [su_box title="Bharat Gaurav express trains " style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Prelims – Government Schemes – Current Affairs In News: The ‘Bharat Gaurav’ train service from Coimbatore to Shirdi, a first of its kind in the country, was inaugurated at the Coimbatore North Railway Station Bharat Gaurav scheme To promote and attract tourism business, the Indian Railways launched Bharat Gaurav trains that will be operated by private players and run on theme-based circuits. Through this policy, which offers operators the “Right of Use” of its rakes and infrastructure, the Railways has liberalised and simplified a part of operations that was otherwise carried out mostly by the Indian Railway Catering and Tourism Corporation (IRCTC). While any entity can run these trains, including state governments, it is implied that the policy is targeted at tour operators. According to the Bharat Gaurav policy, any operator or service provider, or virtually anyone, can lease trains from Indian Railways to run on a theme-based circuit as a special tourism package. The tenure of the arrangement is a minimum of two years and maximum of the codal life of the coach. The operator has the freedom to decide the route, the halts, the services provided, and, most importantly, the tariff. Anyone can approach Railways to lease the 3033 conventional Integral Coach Factory-design coaches earmarked for this segment. These trains cannot be used as ordinary transport trains between an origin and destination. Source: The Hindu Previous Year Questions Q.1) What is the aim of the programme ‘Unnat Bharat Abhiyan’? (2017) Achieving 100% literacy by promoting collaboration between voluntary organizations and government’s education system and local communities. Connecting institutions of higher education with local communities to address development challenges through appropriate technologies. Strengthening India’s scientific research institutions in order to make India a scientific and technological power. Developing human capital by allocating special funds for health care and education of rural and urban poor, and organizing skill development programmes and vocational training for them. [/su_box] [su_box title="Child Malnutrition" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Open in new window Syllabus Mains – GS 2 (Social Issues) Malnutrition Malnutrition, in all its forms, includes undernutrition (wasting, stunting, underweight), obesity, and resulting diet-related noncommunicable diseases. The term malnutrition addresses 3 broad groups of conditions: Undernutrition, which includes wasting (low weight-for-height), stunting (low height-for-age) and underweight (low weight-for-age) Micronutrient-related malnutrition, which includes micronutrient deficiencies or micronutrient excess; and Overweight, obesity and diet-related noncommunicable diseases (such as heart disease, stroke, diabetes and some cancers). Malnutrition is a chronic problem and a longstanding challenge for the public administration of India. Stats The National Family Health Survey (NFHS-5) has shown marginal improvement in different nutrition indicators, indicating that the pace of progress is slow. While there was some reduction in stunting rates (35.5% from 38.4% in NFHS-4) 13 States or Union Territories have seen an increase in stunted children since NFHS-4 The NFHS-5 survey indicates that more than 57% of women (15-49 years) and over 67% children (six-59 months) suffer from anaemia. Developing countries lose up to 4.05% in GDP per annum due to iron deficiency anaemia; India loses up to 1.18% of GDP annually. Reasons Monoculture agricultural practices: Though India has achieved food security, it has not sufficiently addressed the issue of malnutrition. These intensive monoculture agricultural practices can perpetuate the food and nutrition security problem by degrading the quality of land, water and the food derived through them. Changing food patterns: Food consumption patterns have changed substantially in India over the past few decades, which has resulted in the disappearance of many nutritious local foods, for example, millets. Poverty: It affects the availability of adequate amounts of nutritious food for the most vulnerable populations. Lack of sanitation and clean drinking water: poor sanitation, and dangerous hygiene practices increase vulnerability to infectious and water-borne diseases Gender injustice: There is a correlation between gender discrimination and poor nutrition. Malnourished girls become malnourished adolescents who marry early and have children who become malnourished, and so the cycle continues. Inappropriate policies and lax implementation - policies are designed based on real-time data Measures Taken to Tackle Malnutrition Integrated Child Development Services (ICDS) Scheme It provides a package of six services namely supplementary nutrition, pre-school non-formal education, nutrition & health education, immunization, health check-up and referral services. National Health Mission (NHM) The main programmatic components include health system strengthening in rural and urban areas for - Reproductive-Maternal- Neonatal-Child and Adolescent Health (RMNCH+A), and Communicable and Non-Communicable Diseases. Mid Day Meal Scheme It provides that every child within the age group of six to fourteen years studying in classes I to VIII who enrols and attends the school shall be provided with a hot cooked meal, free of charge every day except on school holidays. Poshan Abhiyan It was approved in 2017. It is a multi-ministerial convergence mission with the vision to ensure the attainment of malnutrition free India by 2022. Indira Gandhi Matritva Sahyog Yojna (IGMSY) The scheme aims to contribute to a better enabling environment by providing cash incentives for improved health and nutrition to pregnant and lactating mothers. Way forward Financial commitment Increase investment in women and children’s health and nutrition to ensure their sustainable development and improved quality of life. Saksham Anganwadi and the Prime Minister’s Overarching Scheme for Holistic Nourishment (POSHAN) 2.0 programme have seen only a marginal increase in budgetary allocation Outcome-oriented approach Strict monitoring and interventions by parliamentarians in their constituencies Direct engagement with nutritionally vulnerable groups and contribute toward ensuring last-mile delivery of key nutrition services and interventions. Diversification: Public Distribution System should be diversified, to include millets Source: The Hindu [/su_box] Baba's Explainer - Equality Commission [su_box title="Equality Commission" style="soft" box_color="#f3f3f3" title_color="#d45f07"]   Syllabus GS-2: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure Context: The demand for an Equality Commission have been proposed from time to time by academics and activists, to end social discrimination. Read Complete Details on Equality Commission [/su_box] Daily Practice MCQs [su_box title="Daily Practice MCQs" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Q.1) Consider the following statements about 'Agnipath scheme'. Under the new scheme, around 45,000 to 50,000 soldiers will be recruited annually Only the aspirants between the ages of 17.5 years and 21 years will be eligible to apply 30 per cent of the soldier salary will be set aside under a Seva Nidhi programme Choose the correct statements: 1, 2 and 3 2 and 3 1 and 2 1 and 3 Q.2) Consider the following statements Periodic Labour Force Survey (PLFS) is published by the Ministry of Labour & Employment PLFS has been published annually since the 1991 reforms The Labour Force Participation Rate includes person seeking or available for work Choose the incorrect statements: 1 only 2 only 1 and 2 1, 2 and 3 Q.3) Consider the following statements Bharat Gaurav trains are operated by private players Through Bharat Gaurav schemes Railways offers operators the Right of Use of its rakes and infrastructure It aims to promote tourism business and run on theme-based circuits Choose the correct statements: 1, 2 and 3 3 only 1 and 2 2 and 3 Comment the answers to the above questions in the comment section below!! ANSWERS FOR '15th JUNE 2022 - Daily Practice MCQs' will be updated along with tomorrow's Daily Current Affairs. [/su_box] ANSWERS FOR 14th JUNE 2022 - Daily Practice MCQs [su_box title="Answers- Daily Practice MCQs" style="soft" box_color="#f3f3f3" title_color="#d45f07"] Q.1) - b Q.2) - a Q.3) - d [/su_box]

Baba’s Explainer

Baba's Explainer - Equality Commission

ARCHIVES Syllabus GS-2: Functions and responsibilities of the Union and the States, issues and challenges pertaining to the federal structure Context: The demand for an Equality Commission have been proposed from time to time by academics and activists, to end social discrimination. More recently, on May 29, the Rashtriya Lok Dal (‘RLD’) political party organised a social justice conference that marked the 35th death anniversary of former Prime Minister Chaudhary Charan Singh. During the conference, the demands was made for an Equality Commission by various political parties present at the conference. As a tribute to former PM Charan Singh Singh, a resolution was presented in the conference that called for setting up a social justice or an equal opportunities commission to ensure “targeted affirmative action for those communities that have been left behind”, and to analyse caste census data. [su_spoiler open="yes" title="When was an Equality Commission first conceptualised?" style="fancy" icon="chevron"] On March 9, 2005, then Prime Minister Manmohan Singh constituted a High Level Committee to prepare a report on the social, economic, and educational status of the Muslim community of India. The seven-member committee was chaired by former Chief Justice of the Delhi High Court, Justice Rajinder Sachar, and it submitted its final report in November 2006. In its observations on the ‘development deficit’ among Muslims, the Sachar Committee Report recommended the setting up of an Equal Opportunity Commission (‘EOC’) to “look into grievances of all deprived groups”. In 2008, an expert group, headed by civil servant, lawyer and legal educator Prof. N.R. Madhava Menon, was set up by the Union Ministry of Minority Affairs to implement the EOC model, including developing a legislative framework. The Menon Committee Report recommended the structure, scope, and functions of the proposed EOC, and advised on an appropriate legislative foundation for its implementation. It proposed an Equal Opportunity Commission Bill, 2008 to constitute an EOC. The Bill aimed to address discrimination or any distinction, exclusion, or restriction made on the basis of sex, caste, language, religion, descent, place of birth, residence, disability, descent, place of birth, residence, race, or any other unjustified criteria. The EOC, as conceptualised by the Sachar Committee and developed into an implementation model by the Menon Committee, represented a Commission to supplement reservations. Reservations or ‘removal of disabilities’, as the Menon Committee Report observed, do not warrant equality of opportunities. Hence, the EOC was meant for the deprived groups to access their rights and entitlements, and to address inter-group inequalities, as a move beyond the existing policies on reservations. The Equal Opportunity Commission Bill, 2008, as prepared by the Menon Committee, was approved by the Union Cabinet in February 2014, with the mandate of ensuring no minority community (restricting its ambit from a broader ‘deprived groups’) is discriminated on grounds of religion and redressing complaints therewith. However, the bill has been ignored since then. [/su_spoiler] [su_spoiler open="no" title="How was the functioning of the EOC, proposed by the Menon Committee Report, interpreted?" style="fancy" icon="chevron"] As per the Menon Committee Report, the EOC would have a grievance redressal function only in a limited and supportive capacity. The report emphasized the positive obligation of the State to control direct and indirect discrimination against minorities and marginalised communities. In a letter to the then Union Minority Affairs Minister, the then Prime Minister, Dr. Manmohan Singh and the then Union Minister for Law and Justice in June 2009, pointed out that while the Menon Committee report provided for equal opportunities and diversity, it failed to define and prevent direct and indirect discrimination. It was highlighted that the EOC, under the Menon Committee report, was restricted to explicitly prohibiting discrimination only in the employment and education sectors. The EOC, as proposed by the Menon Committee, relied on voluntary compliance and mediated settlements, thus lacking an enforcement mechanism. It was underlined the need for the proposed EOC to provide relief to individual victims of discrimination, in addition to its ‘group-driven’ model. [/su_spoiler] [su_spoiler open="no" title="Has there been an effort to introduce legislation on Equality Commission?" style="fancy" icon="chevron"] The Anti-Discrimination and Equality Bill, 2016, a Private Member’s bill presented by Congress Parliamentarian Shashi Tharoor, aimed to protect every citizen against all forms of social discrimination. It was a step toward reintroducing anti-discrimination legislation. The Bill proposed the constitution of Central and State Equality Commissions toward eliminating discrimination promoting awareness assisting aggrieved persons in seeking remedies issuing guidelines for protection from discrimination from harassment submitting annual reports. The Bill provides ‘symmetric protection’, that is, it protects minorities as well as majorities. It focuses on all forms of discrimination, and is not confined to caste, sex or religion. As a move away from the open-ended list covered under the Menon Committee report, Section 3A of the 2016 Bill protects against discrimination in relation to “caste, race, ethnicity, descent, sex, gender identity, pregnancy, sexual orientation, religion and belief, tribe, disability, linguistic identity, HIV status, nationality, marital status, food preference, skin tone, place of residence, place of birth or age”. Apart from prohibiting overt or direct discrimination in the form of prejudice or stereotyping, the 2016 Bill covers indirect discrimination, pervasive as “harassment, bullying, segregation, boycott, violence and victimisation”. The Bill prohibits discrimination in public as well as private spheres, including by employers, landlords, retailers and service providers. Thus, in addition to protecting the right to equality as an affirmative action, the Bill overtly prohibits discrimination in the areas of housing, education, work, and medical facilities, among other things The Centre for Law & Policy Research (‘CLPR’) introduced an Equality Bill, 2019 as an anti-discrimination bill based on multiple identities, not restrictive in protecting only specific grounds of discrimination. CLPR claimed to fix gaps in previous anti-discrimination Bills by addressing “intersectional, structural and systematic discrimination” against various forms of conduct such as “direct and indirect discrimination, discrimination by association, intersectional discrimination, systemic/structural discrimination, hate speech, harassment, segregation and boycott, victimization and lynching”. Significantly, certain provisions of the 2019 Bill are dedicated to employment, education, public buildings and public places, healthcare, housing and land. The Bill imposes a significant positive duty on the State and private actors in promoting equality. By including household and domestic workers in the ambit of the Bill, it challenges the compartmentalisation of public and private sectors. [/su_spoiler] [su_spoiler open="no" title="How can an Equality Commission function as a redressal mechanism? " style="fancy" icon="chevron"] In view of constituting an enforcement mechanism, Dr. Shashi Tharoor’s Private Member’s Bill of 2016, through its Central and State Equality Commissions, aims to create civil liability instead of criminalising acts of discrimination. The Bill protects and compensates the victim, as opposed to punishing the perpetrator of discrimination. It views the Commission as an independent and efficient mechanism that tackles the problem of “under-enforcement of existing laws”. The CLPR Bill of 2019 seeks to prevent discrimination and promote equality by establishing Equality Courts. Except in cases of lynching, the Bill aims to provide civil remedies through its Equality Courts. It aims to provide reliefs in the form of declaratory relief, compensation, , directions to make available opportunities, audit of internal policies, affirmative action, settlement by consent, and interim relief. [/su_spoiler] [su_spoiler open="no" title="Despite constitutional protections in place, why do we need an Equality Commission?" style="fancy" icon="chevron"] Part III of the Indian Constitution guarantees the fundamental right to equality under Article 14 (equality before law) Article 15 (prohibition of discrimination on grounds of religion, race, caste, sex or place of birth) Article 16 (equality of opportunity in matters of public employment) Article 17 (abolition of untouchability) Article 15 prohibits discrimination on the limited grounds of religion, race, caste, sex or place of birth. It, thus, excludes other pervasive forms of discrimination; for instance, sexual orientation, disability, marital status, pregnancy, occupation, and linguistic identity. Although Article 15(2) of the Constitution prohibits discrimination perpetrated by private individuals, few cases are litigated against private discrimination. Most litigation in courts is initiated against discrimination by the State. Furthermore, in the majority of cases, courts have restricted the interpretation of discrimination exclusively to its direct form, excluding other indirect discrimination including harassment, segregation, and victimization. Since only the High Courts and the Supreme Court have the power to address violations of constitutional rights, approaching these courts for every instance of discrimination is hardly a feasible choice. Moreover, the judiciary continues to be overburdened with a considerable backlog of cases. Thus, local enforcement mechanisms, in the form of equality commissions, fit the bill. [/su_spoiler] [su_spoiler open="no" title="Apart from the already existing Commissions addressing discrimination, do we need an Equality Commission? " style="fancy" icon="chevron"] Commissions like the National Commissions for Women, Minorities, Scheduled Castes, Scheduled Tribes and Backward Classes, among others, exist to deal with and handle thousands of cases of discrimination each year. Notably, these individual commissions focus on protecting the rights of specific communities against specific discrimination. The National Commission for Women, for instance, deals with issues like cybercrime, dowry deaths, police apathy, gender discrimination in education and work, and other forms of discrimination against women While these Commissions handle complaints against inequalities, they do not provide an umbrella view of the discrimination witnessed in the country. Each of the Commissions operates with a different understanding of the term ‘discrimination’. While various committees existed to protect separate rights of Scheduled Castes, Scheduled Tribes, Other Backward Classes and minorities, it is also felt that there is a need for an Equality Commission to enable the communities to unite. An entity like the Equality Commission, which is based on multiple identities and discrimination, can benefit from the complaints handled by the other Commissions. An Equality Commission can pose as a comprehensive mechanism that covers all forms of discrimination, as opposed to commissions that focus on caste, religion, or sex alone. However, it is imperative that the shortcomings of the proposed EOC under the Menon Commission be addressed, so that the functions of an Equality Commission do not overlap with the already existing Commissions dealing with varied forms of discrimination. [/su_spoiler] [su_spoiler open="no" title="Has similar kind of commission been established in other country?" style="fancy" icon="chevron"] The Equality and Human Rights Commission (EHRC) is Great Britain’s national equality body . As a statutory non-departmental public body established by the Equality Act 2006, the Commission operates independently. The Equality and Human Rights Commission (EHRC) monitors human rights, protecting equality across 9 grounds - age, disability, sex, race, religion and belief, pregnancy and maternity, marriage and civil partnership, sexual orientation and gender reassignment. Way Forward A coherent anti-discrimination or Equality Commission is, however, ineffective without the backing of a single, comprehensive anti-discrimination or equality law. While such legislation has been proposed time and again, it is now up to the government to adopt a singular equality law. The Private Member’s Bill of 2016 lapsed, with the government not showing any interest in adopting it. In view of the recent upsurge in violence against minority communities in India, such legislation acquires significance. [/su_spoiler] Mains Practice Question - Is there a need for setting up an Equality Commission given the existence of multiple autonomous bodies working towards protection of vulnerable communities. Critically Examine. Note: Write answers to this question in the comment section.  

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GEOGRAPHY OPTIONAL TEST SERIES for UPSC 2022 by Atyab Ali Sir

Hello Everyone, The prelims exam is over and for many of you, the door of opportunity is open. As you can gauge from the level of Prelims exam, qualifying prelims is getting tougher and tougher. So, if you are qualifying for the exam, don’t leave any stone unturned to get your name on the final list. Optional plays a very important role in achieving a top rank. Many candidates find it difficult to mark the fine line between the GS and optional answers. It is important that you hone your answer writing skills and be prepared for any challenge that is thrown at you. For Geography optional students we are starting an Optional Test Series. The test series will be starting on 20th June and its validity will be up to the Mains 2022 examRead Complete Details -> Click Here

DAILY CURRENT AFFAIRS IAS | UPSC Prelims and Mains Exam – 14th June 2022

Archives (PRELIMS & MAINS Focus) Fortified Rice Open in new window Syllabus Prelims – Current Affairs Mains – GS 2 (Social issues) In News: Centre begins supply of fortified rice in 90 districts from April 1 The Centre has started distribution of fortified rice through ration shops from April 1 in some 90-odd districts out of 291 targeted for the entire year under phase II of PM-POSHAN Abhiyan The first phase was launched in October 2021 under which fortified rice was supplied through Integrated Child Development Services (ICDS) and Pradhan Mantri Poshan Shakti Nirman-PM POSHAN Fortified rice is made as per the standards fixed by the food safety regulator FSSAI, which has prescribed blending rice with three micronutrients – Iron, Folic Acid and Vitamin B12. Need for rice fortification India has very high levels of malnutrition among women and children. According to the Food Ministry, every second woman in the country is anemic and every third child is stunted. Malnutrition costs India at least ₹77,000 crore annually in terms of lost productivity, illness and death. The country loses about 1 per cent of GDP (₹2.03 lakh crore) due to iron deficiency One rupee spent on nutritional interventions in India could generate ₹34.1-Rs 38.6 in public economic returns Rice is one of India’s staple foods, consumed by about two-thirds of the population. Per capita rice consumption in India is 6.8 kg per month. Therefore, fortifying rice with micronutrients is an option to supplement the diet of the poor. POSHAN Abhiyaan POSHAN Abhiyaan is the flagship program to improve nutritional outcomes for children, pregnant women, and lactating mothers in India. It is also called the National Nutrition Mission. Salient Features of the POSHAN Abhiyan The POSHAN (Prime Minister’s Overarching Scheme for Holistic Nutrition) Abhiyaan spreads awareness towards the problems pertaining to malnutrition and brings viable solutions with it. Implementation status reports of the Abhiyaan are submitted by NITI Aayog every six months. The implementation of POSHAN Abhiyaan is carried out through the Technical Support Unit (TSU) established at NITI Aayog, which will also provide research, policy, and technical support for the program. As the mission is expected to eradicate malnutrition by 2022, it has been taken up by multiple ministries. This helps in expanding the outreach of the mission and thereby facilitating its implementation. Some specific targets of the program are reducing stunting, anemia, under-nutrition, and low birth weight. Specific Targets of the POSHAN Abhiyan The POSHAN Abhiyan aims to target the following specifically: Reduce stunting by 2% annually. Reduce under-nutrition by 2% annually. Reduce anemia by 3% annually. Reduce low birth weight by 2% annually. Source: Business Line Previous Year Questions Q.1) Genetically modified “golden rice” has been engineered to meet human nutritional requirements. Which one of the following statements best qualifies golden rice? (2010) The grains have been fortified with genes to provide three times higher grain yield per acre than other high yielding varieties. Its grains contain pro-vitamin A which upon ingestion is converted to vitamin A in the human body. Its modified genes cause the synthesis of all the nine essential amino acids. Its modified genes cause the fortification of its grains with vitamin D. China Imports Indian Broken Rice Open in new window Syllabus Prelims – Current Affairs Mains – GS 2 (International Relations) In News: China takes over as biggest importer of Indian broken rice China emerged as the top buyer of Indian rice during the pandemic, with the import of 7.7 per cent — of India’s total rice export in financial year 2021-22 The analysis shows that out of China’s total rice import from India of 16.34 LMT, nearly 97 per cent was broken rice, which has seen a spike in demand from that country. Thus making China the top buyer of Indian broken rice, which was earlier, exported mostly to African countries. Rice exports of India In 2021-22, India’s total rice exports — both basmati and non-basmati — was 212.10 LMT, which is 19.30 per cent higher than 177.79 LMT exported in 2020-21 Of India’s total rice export in 2021-22, basmati rice accounted for 39.48 LMT, which was 14.73 per cent lower than 46.30 LMT exported in 2020-21. Non-basmati rice accounts for the lion’s share in the basket of Indian rice exports. During 2021-22, export of rice other than basmati was 172.62 LMT, which was 31.27 per cent higher than 131.49 LMT in 2020-21. Reasons for import by China The reason for this increase in export of broken rice to China is the higher demand of rice for making noodles and wine in that country. Source: Indian Express Previous Year Questions Q.1) Among the following, which one is the largest exporter of rice in the world in the last five years? (2019) China India Myanmar Vietnam Lake Sawa Open in new window Syllabus Prelims – Geography – Map Based Mains – GS 3 (Environment) In News: This year, for the first time in its centuries-long history, Iraq Lake Sawa dried up A combination of mismanagement by local investors, government neglect and climate change has ground down its azure shores to chunks of salt. Sawa Lake Sawa Lake is an endorheic basin located in the Iraqi governorate of Muthanna near to the Euphrates River This lake has no inlet or outlet, but it draws water from the Euphrates through a system of joint cracks and fissures which transport water to aquifers beneath it. The water’s level fluctuates during dry and wet seasons Sawa Lake is characterized by arid climate Because of its saline water, no plants grow in the lake or on its shores. Fish and algae are the most important aquatic organisms. Source: India Today Previous Year Questions Q.1) Which of the following has/have shrunk immensely/dried up in the recent past due to human activities? (2018) Aral Sea Black Sea Lake Baikal Select the correct answer using the code given below: 1 only 2 and 3 only 2 only 1 and 3 only Web 5.O Open in new window Syllabus Prelims – Science and Technology In News: Former Twitter CEO Jack Dorsey recently announced his vision for a new decentralized web platform that is being called Web 5.0 What do the terms Web 1.0, Web 2.0 and Web 3.0 mean? Web 1.0 was the first generation of the global digital communications network. It is often referred to as the “read-only” Internet made of static web-pages that only allowed for passive engagement. The next stage in the evolution of the web was the “read and write” Internet. Users were now able to communicate with servers and other users leading to the creation of the social web. This is the World Wide Web that we use today. Web 3.0 is an evolving term that is used to refer to the next generation of Internet – a “read-write-execute” web – with decentralization as its bedrock. It speaks about a digital world, built leveraging the blockchain technology, where people are able to interact with each other without the need of an intermediary. Web 3.0 will be driven by Artificial Intelligence and machine learning where machines will be able to interpret information like humans. What is Web 5.0? Web 5.0 is aimed at “building an extra decentralized web that puts you in control of your data and identity”. Simply put, Web 5.0 is Web 2.0 plus Web 3.0 that will allow users to ‘own their identity’ on the Internet and ‘control their data’. Both Web 3.0 and Web 5.0 envision an Internet without threat of censorship – from governments or big tech, and without fear of significant outages. What are the use cases for Web 5.0? The control of identity Giving users control over their own data Source: Indian Express Previous Year Questions Q.1) With reference to “Blockchain Technology”, consider the following statements: (2020) It is a public ledger that everyone can inspect, but which no single user controls. The structure and design of blockchain is such that all the data in it are about cryptocurrency only. Applications that depend on basic features of blockchain can be developed without anybody’s permission. Which of the statements given above is/are correct? 1 only 1 and 2 only 2 only 1 and 3 only Type 1 diabetes Open in new window Syllabus Prelims – Science In News: Recently, the Indian Council of Medical Research (IMCR) released guidelines for the diagnosis, treatment, and management for type-1 diabetes. This is the first time the ICMR has issued guidelines specifically for type 1 diabetes, which is rarer than type 2 — only 2% of all hospital cases of diabetes in the country are type 1 — but which is being diagnosed more frequently in recent years. Type 1 diabetes is a condition where the pancreas completely stops producing insulin, the hormone responsible for controlling the level of glucose in blood by increasing or decreasing absorption to the liver, fat, and other cells of the body. Type 1 diabetes is predominantly diagnosed in children and adolescents. Although the prevalence is less, it is much more severe than type 2. Unlike type 2 diabetes where the body produces some insulin and which can be managed using various pills, if a person with type 1 diabetes stops taking their insulin, they die within weeks. The body produces zero insulin How rare is it? There are over 10 lakh children and adolescents living with type 1 diabetes in the world, with India accounting for the highest numbers. Of the 5 lakh people living with type 1 diabetes in India, 90,000 to 1 lakh are under the age of 14 years. For context, the total number of people in India living with diabetes was 7.7 crore in 2019 Who is at risk of type 1 diabetes? The exact cause of type 1 diabetes is unknown, but it is thought to be an auto-immune condition where the body’s immune system destroys the islets cells on the pancreas that produce insulin. Genetic factors play a role in determining whether a person will get type-1 diabetes. The presence of certain genes is also strongly associated with the disease. For example, the prevalence of genes called DR3-DQ2 and DR4-DQ8 is 30-40% in patients with type 1 diabetes as compared to 2.4% in the general population. What are the guidelines? The guidelines provide details on diet and exercise, insulin monitoring, and prevention and treatment of complications such as retinopathy, kidney disease, and nerve disease. Source: Indian Express Baba’s Explainer – Bad Bank: NARCL & IDRCL Bad Bank: NARCL & IDRCL   Syllabus GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.  Context: Finance Minister Nirmala Sitharaman recently announced that the National Asset Reconstruction Company (NARCL) along with the India Debt Resolution Company (IDRCL) will take over the first set of bad loans from banks and try to resolve them. While the problem of bad loans has been a perennial one in the Indian banking sector, the decision to set up a bad bank was taken by the Union government during the Budget presented in 2021. Read Complete Details on Bad Bank: NARCL & IDRCL Daily Practice MCQs Daily Practice MCQs Q.1) Lake Sawa which recently dried up is located in which of the following country? Iran Iraq Uzbekistan Turkmenistan Q.2) Consider the following statements POSHAN Abhiyaan program covers pregnant women and children but excludes lactating mothers The implementation of POSHAN Abhiyaan is carried by Technical Support Unit (TSU) established at NITI Aayog Choose the incorrect statements: 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.3) Consider the following statements State Food Safety Index (SFSI) is published by NITI AAYOG in collaboration with Food and Agriculture Organization Training and Capacity Building parameter has the lowest weightage among the five key parameters considered. Tamil Nadu with an overall score of 82 topped the index Choose the correct statements: 1 only 1 and 3 1, 2 and 3 2 and 3 Comment the answers to the above questions in the comment section below!! ANSWERS FOR ’14th JUNE 2022 – Daily Practice MCQs’ will be updated along with tomorrow’s Daily Current Affairs. ANSWERS FOR 13th JUNE 2022 – Daily Practice MCQs Answers- Daily Practice MCQs Q.1) – d Q.2) – a Q.3) – c

Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 15th June 2022

Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test - Click Here

Baba's Gurukul 2022

[IMPORTANT UPDATE] Baba’s GURUKUL FOUNDATION for Freshers’ 2023

Dear Students Baba's Gurukul Foundation 2023 will start from the 1st Week of July in all centers (DELHI, BENGALURU, LUCKNOW) and in ONLINE Mode. DELHI - 1st July BENGALURU - 4th July LUCKNOW - 4th July ONLINE - 4th July IASbaba has secured 162 Ranks this year, across all its programs.  Three Students from Baba's Gurukul have secured Ranks this year - ANJALI SHROTRIYA (RANK 44), RAJESH PONNAPPA (RANK 222), ANKITA MISHRA (RANK 169). The Introductory Offer will be ending this week.  The Prices for the program will be increasing from the 20th of June. If you are interested in joining Baba's Gurukul Foundation 2023, take the 'SCREENING TEST' - CLICK HERE To Know More about Baba's Gurukul Foundation 2023 - Above & Beyond Regular Coaching - CLICK HERE Still, Confused? You can call us on 91691 91888 or mail us at support@iasbaba.com Or visit our centres: Delhi: Plot 22-B, 3rd floor, Pusa Road, Bada Bazar Marg, Rajinder Nagar, New Delhi- 110060 Landmark: Above Dominos Bengaluru: No.38, 3rd Cross, 1st Phase, 2nd Stage, 60 Feet Main Road, Chandra Layout, Attiguppe, Bengaluru, Karnataka 560040 Landmark: opposite to BBMP Building Lucknow: B-1/66, Sector J, Aliganj, Lucknow – 226024 Landmark: Near Mr Brown / Opp to Sahu Studio.    

Baba’s Explainer

Baba's Explainer - Bad Bank: NARCL & IDRCL

ARCHIVES Syllabus GS-3: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.  Context: Finance Minister Nirmala Sitharaman recently announced that the National Asset Reconstruction Company (NARCL) along with the India Debt Resolution Company (IDRCL) will take over the first set of bad loans from banks and try to resolve them. While the problem of bad loans has been a perennial one in the Indian banking sector, the decision to set up a bad bank was taken by the Union government during the Budget presented in 2021. [su_spoiler open="yes" title="What are Non-Performing Assets (NPAs)?" style="fancy" icon="chevron"] A nonperforming asset (NPA), commonly referred to as bad loans, refers to a classification for loans or advances that are in default or in arrears. A loan is in arrears when principal or interest payments are late or missed. A loan is in default when the lender considers the loan agreement to be broken and the debtor is unable to meet his repayment obligations. In India, a non performing asset (NPA) is defined as a loan or advance for which the principal or interest payment remained overdue for a period of 90 days NPAs classified further into Substandard, Doubtful and Loss assets. Substandard assets: Assets which has remained NPA for a period less than or equal to 12 months. Doubtful assets: An asset would be classified as doubtful if it has remained in the substandard category for a period of 12 months. Loss assets: As per RBI, “Loss asset is considered uncollectible and of such little value that its continuance as a bankable asset is not warranted, although there may be some salvage or recovery value.” [/su_spoiler] [su_spoiler open="no" title="What is the Genesis of NPA problem?" style="fancy" icon="chevron"] Boom years of late 2000s: A large part of the problem started in the latter half of 2010s, as assumptions of persistently high economic growth made several large corporates overzealous in their investment ambitions, thus over-leveraging themselves in the process. Role of Easy Credit by Banks: On the prospects of high economic growth financial sector, led by public sector banks, fuelled these expansion plans through easy money on credit. 2008 Financial Crisis: Growth (and demand) fizzled out following the global financial crisis of 2008. Despite the fire-fighting measures taken by government, the impact of the global crisis was felt in coming years. The crisis got further precipitated by Policy Paralysis of UPA-2 government (Corruption Scandals, Coalition Politics, standstill bureaucracy) Vicious cycle: The stress from stretched corporate balance sheets (revenue impacted due to slowdown) infected banks’ own books and underwhelmed banks own capacity for fresh lending. Former Chief Economic Adviser Arvind Subramanian had called it India’s ‘twin balance sheet problem’ in the Economic Survey for 2016-17. Recognition of Bad loans: Over the course of 2014-19, India’s banks were put on high alert by RBI for tighter recognition norms for bad loans for it believed that that NPAs were being under-stated. NPAs in 2015-16 almost doubled over the previous year as a result. It is not as if bad decisions had suddenly happened. It’s just that the cumulative bad decisions of the past were now coming to be more accurately captured. In March 2018, when bad loans on their books peaked to over ₹10 lakh crore — around 11.5% of all loans. Public sector banks (PSBs) accounted for ₹8.9 trillion, or 86%, of the total NPAs. The ratio of gross NPA to advances in PSBs was 14.6%. These are levels typically associated with a banking crisis. For example, in 2007-08, NPAs totalled only ₹566 billion (a little over half a trillion), or 2.26% of gross advances! The vicious cycle of twin balance sheet problem was interrupted to an extent by the Insolvency and Bankruptcy Code, which, along with tighter recognition norms for bad loans, helped correct the course over time. [/su_spoiler] [su_spoiler open="no" title="How serious is the NPA issue in the wake of the pandemic?" style="fancy" icon="chevron"] The RBI had, in December 2021, warned that bad loans of commercial banks could rise to anywhere between 8.1% and 9.5% under varied degrees of stress by September 2022, from 6.9% in September 2021. True Picture will emerge when support measures are rolled back: RBI believes that a real picture of the state of borrowers’ accounts (and consequently, the banking system in general, and the economy at large), will emerge once the policy support measures are rolled back. Had the central bank’s normal loan classification norms been followed instead of the COVID-19 relief measures, bad loans would have been higher, the RBI has argued Housing Finance Sector may drive NPAs in Future: RBI has also warned about large-scale loan defaults looming over housing finance companies, which have been hit by delays in completion of housing projects, cost overruns due to reverse migration of labourers, and delayed investments by buyers in the affordable housing sector as incomes shrank and jobs were lost. The K V Kamath Committee, which helped the RBI with designing a one-time restructuring scheme, also noted that corporate sector debt worth Rs 15.52 lakh crore has come under stress after Covid-19 hit India, while another Rs 22.20 lakh crore was already under stress before the pandemic. This effectively means Rs 37.72 crore (72% of the banking sector debt to industry) remains under stress. This is almost 37% of the total non-food bank credit. The panel led by Kamath, a veteran banker, has said companies in sectors such as retail trade, wholesale trade, roads and textiles are facing stress. Sectors that have been under stress pre-Covid include NBFCs, power, steel, real estate and construction. Setting up a bad bank is seen as crucial against this backdrop. [/su_spoiler] [su_spoiler open="no" title="Why is it crucial to tackle toxic loans?" style="fancy" icon="chevron"] In every country, commercial banks accept deposits and extend loans. Banks and other financial institutions are considered as the key drivers of economic growth, as they are the formal channels of credit. The deposits are a bank’s “liability” because that is the money it has taken from a common man, and it will have to return that money when the depositor asks for it. Moreover, in the interim, it has to pay the depositor an interest rate on those deposits. In contrast, the loans that banks give out are their “assets” because this is where the banks earn interest and this is money that the borrower has to return to the bank. The whole business model is premised on the idea that a bank will earn more money from extending loans to borrowers than what it would have to pay back to the depositors. A loan can turn bad when the borrower is unable to repay it back. In such case two things happen. One, the concerned bank becomes less profitable because it has to use some of its profits from other loans to make up for the loss on the bad loans. Their capital got eroded as a result. Without adequate capital, bank credit cannot grow. Two, it becomes more risk-averse. In other words, its officials hesitate from extending loans. Lower credit off take translates to lower capacity of economy to expand its activities i.e. lower economic growth. If such “bad loans” in a bank rise alarmingly, the bank could close down. When several banks in an economy face high levels of bad loans and all at the same time, it will threaten the stability of the whole economy. From the taxpayer’s perspective, the most worrisome fact was that an overwhelming proportion of bad loans was with the public sector banks (PSB), which were owned by the government and hence by the Indian public. To keep such PSBs in business, the government was forced to recapitalise them — that is, use taxpayers’ money to improve the financial health of PSBs so that they could carry on with the business of lending and funding economic activity. Despite recapitalisation, the problem of bad loans did not subside. Therefore, it was argued by many that the government needs to create a bad bank — that is, an entity where all the bad loans from all the banks can be parked. [/su_spoiler] [su_spoiler open="no" title="What is Bad Bank?" style="fancy" icon="chevron"] Technically, a bad bank is an asset reconstruction company (ARC) or an asset management company that takes over the bad loans of commercial banks, manages them and finally recovers the money over a period of time. The bad bank is not involved in lending and taking deposits, but helps commercial banks clean up their balance sheets and resolve bad loans in The takeover of bad loans is normally below the book value of the loan (provides certain margin to ARC). The bad bank subsequently tries to recover as much as possible using its expertise in stressed asset resolution. The bad bank concept is in some ways similar to an ARC but is funded by the government initially, with banks and other investors co-investing in due course. The presence of the government is seen as a means to speed up the clean-up process. US-based Mellon Bank created the first bad bank in 1988. [/su_spoiler] [su_spoiler open="no" title="What are the merits of Having Bad Bank? " style="fancy" icon="chevron"] Banks’ Burden is Reduced: The burden of recovering those loans is reduced for other banks. While commercial banks resume lending, the so-called bad bank, or a bank of bad loans, would try to sell these “assets” in the market. Specialisation leads to faster recovery: Speed of recovery will be better as Bad Bank’s main work is recovery and they are specialised in that. Positive Impact on Financial Sector: Bad Bank will help improve the banking sector’s health and fasten the recovery aspects of ailing by putting back frozen assets back into economic circulation. Increased Profitability of Banks: Bad Bank increases profitability of other banks as they can focus more on lending, acquiring more customers and upgrading technology without spending too much time on recovery or resolution of bad loans Complements Previous Measures: Despite a series of measures by the RBI for better recognition and provisioning against NPAs, as well as massive doses of capitalisation of public sector banks by the government, the problem of NPAs continues in the banking sector, especially among the weaker banks.  Having a Bad Bank will complement other measures taken by RBI & government to clean up banking sector. Helps solve economic aftershocks of Pandemic: As the Covid-related stress pans out in the coming months, proponents of the concept feel that a professionally-run bad bank, funded by the private lenders and supported the government, can be an effective mechanism to deal with NPAs. Feasibile: Bad banks can make profits as they usually keep high margin before acquiring the bad loans. The concept of Bad Bank has been implemented in other countries including Sweden, Finland, France and Germany. [/su_spoiler] [su_spoiler open="no" title="What are the demerits of Bad Bank?" style="fancy" icon="chevron"] Shifting of Problem: Former RBI Governor Raghuram Rajan had opposed the idea of setting up a bad bank in which banks hold a majority stake. He was of the opinion that bad bank idea as merely shifting loans from one government pocket (the public sector banks) to another (the bad bank). Reckless Lending: Other banks may not concentrate on the quality of loans as they always an option of shifting bad loans to ARC/ Bad Bank. This leads to doling out loans without proper diligence leading to reckless lending Efficacy Debate: Bad banks may not acquire critical loans which are difficult to recover and only concentrate on easily recoverable loans. As a result, troubled Commercial banks continue to face the issue of bad loans. There is also the fear that it ends up as another case of throwing good money after bad. Profitability of Banks: High margin of Bad banks may curtail the profits of other banks which can in turn impact their lending capabilities. Moral Issues: Due to pressure bad banks may employ some unethical ways to recover loans. Another issue is that other banks may not show the actual position of loan accounts by doing window dressing. [/su_spoiler] [su_spoiler open="no" title="What is the structure of the bad bank set up by Union Government?" style="fancy" icon="chevron"] Following up the 2021 Union Budget announcement, government has incorporated “National Asset Reconstruction Company Limited” (NARCL) under the Companies Act. It will acquire stressed assets worth about Rs 2 lakh crore from various commercial banks in different phases. Public Sector Banks (PSBs) will maintain 51% ownership in NARCL. Another entity — India Debt Resolution Company Ltd (IDRCL), which has also been set up — will then try to sell the stressed assets in the market. PSBs and Public Financial Institutes (FIs) will hold a maximum of 49% stake in IDRCL. The remaining 51% stake will be with private-sector lenders. The NARCL-IDRCL structure is the new bad bank. To make it work, the government has provided Rs 30,600 crore to be used as a guarantee. Government guarantee, valid for five years, helps in improving the value of security receipts, their liquidity and tradability. [/su_spoiler] [su_spoiler open="no" title="How will the NARCL-IDRCL work?" style="fancy" icon="chevron"] NARCL and IDRCL will have an exclusive arrangement that will be as per the scope defined in the ‘Debt Management Agreement’ to be executed between these two entities. This arrangement will be on a ‘Principal-Agent’ basis and final approvals and ownership for the resolution shall lie with NARCL as the Principal The NARCL will first purchase bad loans from banks. It will pay 15% of the agreed price in cash and the remaining 85% will be in the form of “Security Receipts” guaranteed by the government. Although the government is giving guarantee on the SRs, it has not contributed to the equity of the bad bank. When the assets are sold, with the help of IDRCL, the commercial banks will be paid back the rest. The government guarantee will essentially cover the gap between the face value of the security receipts and realised value of the assets when eventually sold to the prospective buyers. It is for this purpose Rs 30,600 crore has been provided by the government. Concerns RBI has raised concerns over the lack of clarity on the regulatory oversight of an asset management company (AMC) that was proposed to be set up under the overarching structure of the NARCL. The RBI has asked while it will have a regulatory/supervisory role over the NARCL, whom is this AMC accountable to?. This, coupled with some other operational issues, has delayed the transfer of large bad loans of about Rs 50,000 crore to the NARCL in the first phase from the initially targeted deadline of March 2022. As the NARCL concept is new to India, once regulatory clarity is established, it will pave the way for the setting up of similar entities in future [/su_spoiler] Mains Practice Question - How has Ukraine Crisis impacted India’s trade policy? Critically examine. Note: Write answers to this question in the comment section.  

Daily Prelims CA Quiz

UPSC Quiz – 2022 : IASbaba’s Daily Current Affairs Quiz 14th June 2022

Previous Daily Quiz (ARCHIVES) - CLICK HERE The Current Affairs questions are based on sources like ‘The Hindu’, ‘Indian Express’ and ‘PIB’, which are very important sources for UPSC Prelims Exam. The questions are focused on both the concepts and facts. The topics covered here are generally different from what is being covered under ‘Daily Current Affairs/Daily News Analysis (DNA) and Daily Static Quiz’ to avoid duplication. The questions would be published from Monday to Saturday before 2 PM. One should not spend more than 10 minutes on this initiative. Gear up and Make the Best Use of this initiative. Do remember that, “the difference between Ordinary and EXTRA-Ordinary is PRACTICE!!” Important Note: Don't forget to post your marks in the comment section. Also, let us know if you enjoyed today's test :)After completing the 5 questions, click on 'View Questions' to check your score, time taken, and solutions.To take the Test - Click Here