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Daily Prelims CA Quiz

UPSC Quiz - 2020 : IAS Daily Current Affairs Quiz Day 5

UPSC Quiz - 2020 : IASbaba’s Daily Current Affairs Quiz Day 5 Archives Q.1) Consider the following statements with respect to ‘Parthenogenesis’ It is a natural form of asexual reproduction It takes place in plants only Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.2) Which of the following states can be referred to as the ‘Molasses Basin’? Mizoram Goa Tamil Nadu Arunachal Pradesh Q.3) Which of the following countries do not open into the ‘Yellow Sea’? China North Korea South Korea Mongolia Q.4) ‘Gahirmatha rookery’ and ‘Mouth of rivers Rushikulya & Devi’ is often seen in news, in the context of Kharai Camel Olive Ridley Turtles Great Indian Bustard Sangai Deer Q.5) The town of Orchha was in news recently. Consider the following statements The town depicts a peculiar style of the Bundela dynasty. It is situated on the banks of the Betwa River. Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 To Download the Solution - Click here All the Best  IASbaba

IASbaba's Daily Current Affairs

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 13th June 2019

IAS UPSC Prelims and Mains Exam – 13th June 2019 Archives (PRELIMS + MAINS FOCUS) DRDO conducts maiden test of hypersonic technology demonstrator Part of Prelims and mains GS III; Security In News The Defence Research and Development Organisation (DRDO) conducted the maiden test of an indigenously developed Hypersonic Technology Demonstrator Vehicle (HSTDV) along with several technologies Under this project, DRDO is developing a hypersonic vehicle that will be powered by a scram-jet engine. This is dual-use technology, which when developed, will have multiple civilian applications. It can be used for launching satellites at low cost. It will also be available for long-range cruise missiles of the future, In scram-jet technology, combustion of fuel takes place in a chamber in the missile at supersonic speeds. This is different from a ram jet system where the system collects the air it needs from the atmosphere during the flight at subsonic speeds and the propellants burn in the combustion chamber. Jalan panel report on RBI reserves Part of Mains: GS III – Indian Economy and related issues In news The Bimal Jalan committee, which is looking into the size of capital reserves that the RBI should hold, will have one more meeting before finalising its report to be submitted to the apex bank by the month-end. The six-member panel, under former RBI Governor Jalan was appointed on December 26, 2018, to review the economic capital framework (ECF) for the Reserve Bank after the Finance Ministry wanted the RBI to follow global best practices and transfer more surplus to the government. (Note: For further details on this topic read: IASBaba Current Affairs 23 April 2019 (MAINS FOCUS) NATIONAL TOPIC: General studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections. Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Indian Education system: Rote learning Background: The importance accorded to school-leaving examinations in India puts enormous pressure on students to score the highest possible marks. Bagging a rank among lakhs of students is accepted widely as a mark of excellence. But how scientific is the examination system at determining the progress of students? Exam system in India: The first mention of the educational system being throttled by exams was in 1904 in the Indian Educational Policy, at the time formulated by the Governor General in Council. After that this was mentioned in every commission and report. As far as reliability of children’s understanding, acquiring knowledge and ways of formulating knowledge are concerned, the examination system doesn’t leaves much scope. Children do acquire snippets of information, but whether they construct that into knowledge remains seriously doubtful. Steps taken: A recent attempt made in the Right to Education (RTE) Act to introduce Continuous and Comprehensive Evaluation (CCE) was an important step but this was not welcomed by a large number of schools and State authorities. The idea that the RTE introduced — that we will not have a Board examination up to Grade 8 — has now been amended by Parliament. States are now once again free to introduce a Board exam. Some have already moved towards that by reintroducing at Grade 5 and Grade 8 levels an exam that can classify children into pass and fail categories. Compared with other countries: European systems, including the British system on which we were modelled originally, have moved on to far more holistic and humanistic ways of assessing each child’s own growth trajectory right from the beginning. Even where there are public exams, they are taken with much greater care for objectivity and justice for every child. The GCSE [General Certificate of Secondary Education] in Britain, for example, makes sure that each child’s work and performance gets a fair chance to be assessed properly by more than one evaluator. The assessment systems in Finland, the U.K., and some States in the U.S.- A kind of continuous assessment which feeds back into the teaching-learning process and a kind of taking care of the child’s continuous progress is in place. In the public exam, the questions are on concepts, critical thinking and various ways of looking at the avenues of knowledge, and [there are] criteria for judging the veracity of that knowledge. Our emphasis is on speedy reproduction of information. I Conclusion: Two things needs to be reformed— the structure of the school and the curriculum. An alternative way should be found to ameliorate the high competition in the parents’ mind. There is a possibility of reforming the system in such a manner that it is more insightful and less stressful. Connecting the dots: The Indian examination system is hardly scientific at determining the progress of students. Comment. NATIONAL TOPIC: General studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential; citizens charters, transparency & accountability and institutional and other measures. Lateral Entry in Bureaucracy In news: After selection of nine lateral entrants as joint secretaries in various ministries/departments on contract basis, the government plans to extend such induction of private sector domain experts to the lower-level deputy secretary and director posts as well. The Department of Personnel & Training has been tasked with opening up as many as 400 posts — out of the 1,300-odd at these levels under the Central Staffing Scheme — for lateral hiring. If implemented, this would constitute the single biggest reform of public administration in independent India. Need: The current administrative system, wherein top positions are manned by career bureaucrats having little specialised knowledge and recruited through a common civil services examination, has outlived its utility. A liberalised economy requires not generalists, but people who understand industrial processes and new technologies, taxation, finance, trade and investment in a dynamic, globalised setting. Even the old “steel frame” model of governance needs revisiting in favour of more nimble, entrepreneurial public service organisations focusing on performance and delivery by incorporating private sector management practices. The jack-of-all-trades, master-of-none approach to public administration needs to be dispensed with and is, indeed, an unfinished task of reforms and liberalisation. It also fits into the “minimum government, maximum governance”. There can be no better means to achieving that goal than by deepening expertise and expanding the scope of lateral appointments in government. Going forward: The process of selecting candidates for lateral entry, which has to be transparent, robust and credible. Filling 400 posts without conducting formal competitive exams can invite legal challenges, more so if they are seen to be at the expense of the “natural” All-India or Central Civil Services claimants to these jobs. Striking a balance between merit and ensuring adequate representation for disadvantaged communities is necessary even in a regime of lateral entry. Alternatively the “generalists” can be turned into “specialists” through mid-career professional development programmes or extended tenures in particular departments/fields. Connecting the dots: Lateral entry once implemented would constitute the single biggest reform of public administration in independent India. Comment. (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note: Featured Comments and comments Up-voted by IASbaba are the “correct answers”. IASbaba App users – Team IASbaba will provide correct answers in comment section. Kindly refer to it and update your answers. Q.1) Which of the following panel has been set up to review the economic capital framework (ECF) for the Reserve Bank? Urjit Patel Panel Lodha Panel Bimal Jalan Panel None of the above Q.2) In Index of Industrial Production (IIP), which of the following sectors have highest share? Electricity Manufacturing Services Mining Q.3) Consider the following statements, CPI is calculated by CSO with base year 2010-11 IIP is calculated by Department for Promotion of Industry and Internal Trade (DPIIT) with base year 2011-12. Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 MUST READ Navigations in Bishkek The Hindu Back to Kashmir with an open heart The Hindu Forging national security Indian Express

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Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 12th June 2019

IAS UPSC Prelims and Mains Exam – 12th June 2019 Archives (MAIN FOCUS) New agency to develop space warfare weapon systems Part of Prelims and mains GS III: Science and Technology In news To enhance the capabilities of the armed forces to fight wars in space, the government has approved the setting up of a new agency which will develop sophisticated weapon systems and technologies. The Defence Space Research Agency (DSRO) has been entrusted with the task of creating space warfare weapon systems and technologies. The agency would be provided with a team of scientists which would be working in close coordination with the tri-services integrated Defence staff officers. It would be providing the research and development support to the Defence Space Agency (DSA) which comprises members of the three services. Amitabh’s Twitter data put on dark web Part of Prelims: Science and Technology, Mains: GS Paper III– Science and Technology https://cdn-images-1.medium.com/max/1313/1*QUq9UpyBl_Ro2XaKSbUpiw.jpeg What is Dark Web? The dark web is the World Wide Web content that exists on darknets, overlay networks that use the Internet but require specific software, configurations, or authorization to access. The dark web forms a small part of the deep web, the part of the Web not indexed by web search engines, although sometimes the term deep web is mistakenly used to refer specifically to the dark web. Quad one way to fix regional issues: Australian envoy Part of Prelims: International relations, Mains: GS Paper II – International relations. In news Quad, ASEAN and RCEP are common interest areas of India and Australia. There is need for flexibility, agility and speed in solving regional problems and the Quad is one of many such small groupings in solving them. A successful conclusion to negotiations on RCEP would help shape the regional rules and norms governing trade, investment and the broader economy. About Quad: It is considered as an informal grouping among India, Japan, Australia, and the United States. It has been seen as a prospective coalition among the four countries with a political and security perspective in the Indo- Pacific region. The group is currently only a proposal, and has not taken form of an official alliance/organization or any other designated international group. About RCEP Regional Comprehensive Economic Partnership (RCEP) is a proposed arrangement between ASEAN and six Asia-Pacific countries including India and Australia. Mainly with the focus on trade and investment. Virendra Kumar is Pro-tem Speaker Part of Prelims and mains GS II: Indian Polity In news: Virendra Kumar will be the Pro-tem Speaker of the Lok Sabha. As Pro-tem Speaker, he will preside over the first sitting of the Lok Sabha, administer the oath of office to the newly elected MPs, and oversee the election of the Speaker. Do you know? After a general election and the formation of a new government, a list of senior Lok Sabha members prepared by the Legislative Section is submitted to the Minister of Parliamentary Affairs, who selects a pro tem speaker. The appointment has to be approved by the President. The first meeting after the election when the Speaker and the Deputy Speaker are selected by members of the Parliament is held under the pro tem Speaker. (MAINS FOCUS) NATIONAL TOPIC: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. The 5G Wave Introduction: 5G is the next generation of mobile standards being defined by the International Telecommunications Union (ITU) – a specialized agency of the UN for information and communication technologies responsible for allocation of global radio spectrum and development of technical standards. Along with high data rate, 5G will also reduce latency, save energy, and enable massive device connectivity, paving the way for next-generation applications such as autonomous vehicles, smart homes and cities, and massive machine-to-machine communications for industries. It is estimated that the total economic impact from 5G in India can exceed $1 trillion by 2035. Is India 5G Ready? India, with the second largest mobile phone subscriber base globally, has also joined the race for 5G. The delayed adoption of previous generations of mobile networks. The commercial launch of 3G services took place in Japan in 2001, but arrived in India only in December 2008. 4G roll-out in 2012 came three years after the first commercial launch in 2009. The telecom industry is under severe financial distress, with falling Average Revenue Per User (ARPU), declining revenues, mounting losses and increasing debt. The import duty for equipment such as base stations, optical transport gear, 4G LTE products, gateway controllers, carrier Ethernet switches etc., has further been increased to 20 per cent. 5G deployment is a costly affair and debt-ridden telecom service providers have to work their finances out before they chart out plans for acquiring 5G spectrum or investing in equipment. One of the fundamental requirements for timely and effective 5G deployment is optical fibre based strong backhaul infrastructure. Optical fibre kilometres per capita in India is around one-tenth that in China and one-fifteenth of that in Japan. As mentioned in the National Digital Communications Policy 2018, the fibre-to-the-tower programme is supposed to enable at least 60 per cent of telecom towers thereby accelerating migration to 4G/5G. The government’s flagship BharatNet programme also plans to link 2.5 lakh gram panchayats through optical fibre network. However, to achieve these targets a major change is necessary in existing construction and clearance processes. High Level 5G India 2020 Forum: It was set up in 2017 to evaluate and build a roadmap or action plan for 5G deployment in India by 2020. The report laid out three priority areas in 5G: Deployment – An early roll out of 5G services to maximise the value proposition of 5G as a technology. Technology – To build indigenous industrial and R&D capacity, especially for the design and Intellectual Property. Manufacturing – To expand the manufacturing base for 5G technologies, which includes both semiconductor fabrication and equipment assembly and testing. Way ahead: Bringing the full benefits of 5G to the people and economy at the lowest cost and in the shortest time possible. It is in India’s benefit to not exclude any players from the small set of 5G equipment vendors. It is to our advantage to keep competition high, telecom equipment pricing low, and access to the full range of technology options open. Minimise any security risks to critical telecom infrastructure. India can consider forming a techno-diplomatic alliance with countries at risk from the same telecom products and create an information sharing and competency building agreement with them — Russia, Japan, France, and Germany are some of the potential partner countries. Maximising India’s opportunities for value creation from the global 5G revolution. India has limited intellectual property in 5G technologies and is largely going to be a buyer of this technology. However, the size of the Indian market and our strengths in services and software create some opportunities for symmetric dependencies and value creation. The government should encourage capacity building in Indian companies for “5G deployment services” such that Indian talent can be used across the world. Global deployments of 5G are expected to continue over the next decade and will require skilled labour to design, install, and monitor these networks. Conclusion: Telecom technology generations evolve in decade time-frames. It will take foresight and strong execution of a national plan to make India a relevant player in the next evolution of telecom technology. If India plays this situation right and plays to win, we can not only bring timely and affordable 5G to India, but do it with due consideration to our security concerns and even get an upside from our engagement with the global 5G revolution. Connecting the dots: India, with the second largest mobile phone subscriber base globally, has joined the ongoing race for 5G. Is India ready for the same? Discuss. INTERNATIONAL TOPIC: General Studies 2: India and its neighbourhood- relations Effect of policies and politics of developed and developing countries on India’s interests, Indian diaspora. India and Middle East Introduction: The government in last few years had invested considerable political capital, time and resources in cultivating critical players in the Middle East, namely, Saudi Arabia, United Arab Emirates (UAE), Qatar and Iran in the Persian Gulf region, and Israel in the Levant. It is time to reap the fruits of political investments and elevate the engagements to a higher level. Challenges and Solutions: Iran has been a major foreign policy challenge since the end of the Cold War. The Trump Administration is determined to halt Iran's oil exports completely. The government needs to devise a balanced approach vis-à-vis the United States and its demands on Iran. India also needs to enhance its financial commitments to the Chabahar Port project. Sash the bureaucratic cobwebs and enable the flow of investments from the UAE and Saudi Arabia, which have committed to invest up to US$ 75 and 100 billion, respectively, in India. If the Ratnagiri refinery does not take off due to land issues, the government should explore other western coastal states to facilitate Saudi-Emirati investments in the mega refinery project. The ongoing intra-Gulf crisis over Qatar does not serve India's interest. Given its economic, political, energy and expatriate links, an early resolution of the Saudi-Qatari standoff is in India's interest. During his first term in office, PM Modi had established a personal rapport with all key players involved in the crisis. The government should leverage this to initiate a dialogue process with the leaders in the region. China has managed to entice the Gulf Arab countries to endorse and partake in its ambitious Belt and Road Initiative. India will have to expand its trade basket and move into investment projects with the Gulf Arab countries. The Indo-Omani joint fertiliser company in Sur and India’s economic partnership with Jordan presents a model and precedent for more energised Indian investment in the Gulf economies. The government should also encourage the private sector to expand its presence in the Middle Eastern economies, especially the Persian Gulf region. India should expand its presence in the Israeli economy and technology market through selective but aggressive investments aimed at technology acquisition. A robust cybersecurity cooperation with Israel should be explored. India's growing political engagements with the Middle East must be given more extensive publicity within the country. This will not only generate broader domestic support for it but also enhance India's influence in the region Conclusion: While the government has engaged actively in last few years with the Middle Eastern countries, it is now time for action. Connecting the dots: The government in last few years had invested considerable political capital, time and resources in cultivating critical players in the Middle East. It is time to reap the fruits of political investments and elevate the engagements to a higher level. (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in comment section) Note: Featured Comments and comments Up-voted by IASbaba are the “correct answers”. IASbaba App users – Team IASbaba will provide correct answers in comment section. Kindly refer to it and update your answers. Q.1) Consider the following statements, First session of Lok Sabha, after general elections, is presided by President. Speaker protem delivers oath to newly elected MPs in Lok Sabha. Select the correct statements 1 only 2 only Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following countries : Australia Canada China India Japan USA Which of the above are among the 'free-trade partners' of ASEAN ? 1, 2, 4 and 5 3, 4, 5 and 6 1, 3, 4 and 5 2, 3, 4 and 6 Q.3) Consider the following countries : Australia Canada China India Japan USA Which of the above are not members of the proposed Quad? 1, 4, 5 and 6 3, 4, 5 and 6 2 and 3 All of the above are members MUST READ The importance of being neighbourly The Hindu Balancing the poles Indian Express The middle income illusion Indian Express

IASbaba's Daily Current Affairs

Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 11th June 2019

IAS UPSC Prelims and Mains Exam – 11th June 2019 Archives (MAIN FOCUS) SEBI mulls norms to reward whistle-blowers Part of: Prelims and Mains GS III Indian Economy In news: The Capital Market regulator, SEBI has proposed an informant mechanism to blow the whistle on insider trading cases. What is Insider Trading? Insider trading is defined in the SEBI (Prohibition of Insider Trading) Regulations, 2015 (‘PIT Regulations’) to mean trading of securities while in possession of unpublished price sensitive information (‘UPSI’). Insider trading is essentially a malpractice wherein trade of a company's securities is undertaken by people who by virtue of their work have access to the otherwise non-public information which can be crucial for making investment decisions. As per the SEBI Act, insider trading is punishable with a penalty which shall not be less than 10 lakhs. The maximum penalty could be as high as Rs 25 crore or three times the amount of profits made out of insider trading, whichever is higher. The Act also prescribes that insider trading is punishable with a prison term of up to 10 years. SECURITY TOPIC: General studies 3: Security challenges and their management; linkages of organized crime with terrorism Challenges to internal security Linkages between development and spread of extremism. Defence Preparedness in India Background: With the Modi Government returning to power, expectations of deeper and far-reaching reforms are high across various ministries and departments. The Ministry of Defence (MoD), which has already undertaken a plethora of reforms during the last five years, is expected to walk along the reform path and build on previous initiatives to further strengthen defence preparedness and build a credible defence industrial base. Defence Planning: In April 2018 the Defence Planning Committee (DPC) was set up under the chairmanship of the National Security Advisor (NSA). The purpose of the powerful DPC is to facilitate comprehensive and integrated defence planning. Its mandate is to articulate a national security strategy, develop a holistic defence plan, keeping in view the critical requirements of the armed forces as well as resource constraints. Defence Budget: A very large portion of the defence budget is earmarked for manpower costs, which has also witnessed a hefty rise after the implementation of the recommendations of the Seventh Central Pay Commission (CPC) and the One Rank One Pension (OROP) scheme. As a result, the capital procurement budget, which is critical for defence modernisation, has seen a marked fall in its share in the budget. Defence Acquisition: The present Defence Procurement Management System and the Defence Procurement Procedures (DPP), have come a long way since their creation in 2001. The established structures and procedures have streamlined many aspects of acquisition through the periodic revision of the DPP. Issues: In performance audit report of 2019, the CAG has pointed out that the existing organisation has “resulted in diffused accountability” as it involves numerous agencies that are accountable to different administrative heads. The auditor has also pointed out the lack of objectivity and fair play in technical evaluation. The acquisition machinery also suffers from lack of professional expertise to undertake the assigned tasks. Make in India in Defence: Under the Make in India initiative, the government has already taken a large number of initiatives to promote indigenous defence manufacturing. These include a streamlined industrial licensing process; a hike in the foreign direct investment (FDI) cap from 26 to 100 per cent; a level-playing field for the private sector vis-à-vis public sector entities in payment and tax matters and a new procurement category to enable domestic industry to focus on indigenous design and higher level of indigenisation. The MoD has also announced an ambitious defence production policy that aims at arms production; launched two defence industrial corridors; identified a number items in which local suppliers would enjoy purchase preference; and announced a number of initiatives to support start-ups and innovation. The MOD should now build on the initiatives already taken to further strengthen India’ defence manufacturing base. Way forward: The Defence Planning Committee (DPC) should articulate the national security strategy and a set of holistic capability, R&D and manufacturing plan documents. Rationalising the current manpower-driven defence expenditure. To provide greater momentum to the modernisation of the armed forces, there is a need to enhance defence spending. The MoD should explore the option of generating revenues by putting to commercial use the unused and underused defence land. Making the acquisition apparatus more accountable and professional. Strengthening the defence manufacturing base to meet the requirements of the armed forces. Conclusion: Given its volatile security environment and the changing character of warfare, India cannot afford to lower its military guard. The last five years have witnessed an unprecedented number of reforms to enhance defence preparedness and equip the armed forces with indigenously sourced arms. These reforms need to be deepened so as to meet India’s security threats effectively and through arms made in India. Connecting the dots: Major reforms have been taken by the government in recent times to strengthen India’s defence preparedness. Its time these reforms are deepened to meet India’s security threats effectively. Comment. NATIONAL/AGRICULTURE TOPIC: General Studies 1: Role of women and women’s organization, Poverty and developmental issues, Social issues; vulnerable sections of the society General studies 2: Government policies and issues arising out of their design and implementation   Declining female employment In news: It is a national tragedy that women unable to find work are dropping out of the labour force. As per labour force survey data, rural India is in the midst of a gender revolution in which nearly half the women who were in the workforce in 2004-5 had dropped out in 2017-18. The 61st round of the National Sample Survey Office (NSSO) recorded 48.5% rural women above the age of 15 as being employed either as their major activity or as their subsidiary activity — but this number dropped to 23.7% in the recently released report of the Periodic Labour Force Survey (PLFS). Reasons behind: Mechanisation and land fragmentation have reduced agricultural work opportunities for both men and women. Other work opportunities, except for work in public works programmes, are not easily open to women. This challenge is particularly severe for rural women with moderate levels of education. A man with class 10 education can be a postal carrier, a truck driver or a mechanic; these opportunities are not open to women. The 2017 Maternity Benefit Act cover only 8 per cent of the Indian organised sector workforce and left out 92 per cent of the unorganised and informal workers. Way ahead: Establishment of the Cabinet Committee on Employment and Skill Development is a welcome move by the new government. It is to be hoped that this committee will take the issue of declining female employment as seriously as it does the issue of rising unemployment among the youth. One of the most powerful ways in which public policies affect rural women’s participation in non-agricultural work is via development of transportation infrastructure that allows rural women to seek work as sales clerks, nurses and factory workers in nearby towns. An expansion in the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme. Since MGNREGA is a self-targeted scheme, women looking for work would automatically look to enrol themselves in it. A further boost to female labour force participation could be provided by increasing wages for women in the MGNREGA scheme. Conclusion: We need to focus on multi-sectoral reforms that have a positive impact on women’s work opportunities. The potential gender dividend could be far greater than the much celebrated demographic dividend. Connecting the dots: Indian women unable to find work are dropping out of the labour force. Comment. (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in the comment section) Note: Featured Comments and comments Up-voted by IASbaba are the “correct answers”. IASbaba App users – Team IASbaba will provide correct answers in comment section. Kindly refer to it and update your answers. Q.1) Consider the following statements about BT Cotton, There are three types of BT cotton in India namely, BG I Cotton, BG II Cotton, BG III Cotton. All the three varieties are allowed to cultivate in general in India. Select the correct statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 Q.2) Consider the following statements The Securities and Exchange Board of India is a non statutory regulator of Securities market in India. Insider trading is a punishable offence under SEBI Act. Select the incorrect statements Only 1 Only 2 Both 1 and 2 Neither 1 nor 2 MUST READ Is NITI Aayog old wine in a new bottle? The Hindu A clear arc from India to Nigeria The Hindu Way forward in Kashmir Indian Express  

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RSTV IAS UPSC – Strengthening India's Infrastructure

Strengthening India's Infrastructure Archives TOPIC: General Studies 2 Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes In News: In line with its election promise of Rs 100 trillion investment in the infrastructure sector by 2024, the NDA government would be targeting low-hanging fruits, such as Metro projects, inland waterways, natural gas grids and airport privatisation, to give a fillip to private sector investment in the first few months of its tenure. Getting private sector back in a big way would be the topmost priority since the government has limited fiscal headroom. Fitch said in its report that reducing general government debt to 60 per cent of the GDP ceiling by FY25, from the rating agency’s 68.8 per cent of the GDP in FY19 would require a significant deficit reduction of about 0.5 per cent of GDP annually. The government’s own budgetary support would, therefore, be largely limited to creating infrastructure support for agriculture, IT in education and digital networks for its social outreach programmes. Transport Infrastructure in India Transport infrastructure in India has grown at an unprecedented rate during nearly the last five years. We can, in fact, claim that this has been a period of “highest evers" and “never befores" for the sector. At the highest ever pace of construction, we have built more than 35,000 km of national highways in four and a half years. The country had never before seen world-class expressways such as the Eastern Peripheral Expressway and Western Peripheral Expressway or engineering marvels such as the Dhola Sadiya Bridge and Chenani Nashri Tunnel. The Bharatmala Pariyojana is unique and unprecedented in terms of its size and design, as is the idea of developing ports as engines of growth under Sagarmala (help connect places of production with markets more efficiently, help reduce logistics costs, create jobs and promote regionally balanced socioeconomic growth in the country). The development of 111 waterways for transport, with multinational companies already carrying their cargo over the Ganga, is also a first ever, as are FASTags, the promotion of alternative fuels such as ethanol, methanol, biofuels, and electricity, as well as innovative modes of travel such as seaplanes and aeroboats. India's Infrastructure Woes The figures gleaned from official data, underline an infrastructure emergency, which is not getting addressed fast enough. Our Rail tracks, airports and roads are choked beyond capacity and there’s little relief in sight. The high rate of accidents continues to be a matter of grave concern. There is a need to prevent the colossal loss of lives in road accidents, and give priority to rectifying accident black spots through engineering means, employing road safety features at the design stage for highways, conducting road safety audits, setting up driver training and post-trauma care centres as well as generating awareness. Innovative solutions like seaplanes, ropeways, aeroboats and double-decker buses need to be actively explored for adoption. These will bring down the traffic pressure and congestion on roads. Seaplanes have already been tested, and trials are soon to be conducted on aeroboats. A memorandum of understanding (MoU) has been signed with Austrian ropeway company Doppelmayr for building ropeways through congested cities and hilly areas, and another MoU has been signed with Transport for London to help us overhaul our urban transport. To reduce pollution, it is required to promote alternative fuels like ethanol, methanol, biofuels and electricity. The concept of ‘waste to wealth’ should be employed for generating alternative fuels. Priority to also be given to greening the roads, and FASTag-based electronic toll collection, which will prevent congestion at toll plazas and bring down pollution. Need for Private sector participation Private sector participation in infrastructure delivery helps deliver tangible benefits, and there is anecdotal evidence to support this, even as the fiscal space remains constrained. In highways, airports, ports and renewables, the private sector’s role has been landscape altering. The private sector has also delivered efficiently—both on project execution (where land and clearances have not been a constraint) as well as operations. Besides, private participation enhances public accountability. As consumers, we rarely hold public utilities to account for non-performance, and resort to coping solutions. Yet, when a public private partnership (PPP) contract is awarded, we tend to demand better services right away. When done right, PPPs bring back trust in public utilities that execute them, improve service delivery, bridge resource gaps, and help wean away dependence on unsustainable coping solutions which the poor can ill afford. Government’s thrust on Infrastructure Given the need for resources to boost its ambitious infrastructure programme, the government is also exploring an independent financial institution to cater exclusively to the roads and highways sector. The roads ministry also introduced an asset monetization model in India, referred to as the toll operate transfer (ToT), which is now expected to provide a template for other infrastructure sectors. Connecting the Dots For the better performance of infra sector, newer and innovative funding techniques and sources are to be devised, changes in the regulatory environment in which infrastructure companies operate and the tax framework which applies to the sector are to be made favourable. Elucidate.

Daily Prelims CA Quiz

UPSC Quiz - 2020 : IAS Daily Current Affairs Quiz Day 4

UPSC Quiz - 2020 : IASbaba’s Daily Current Affairs Quiz Day 4 Archives Q.1) Consider the following statements with respect to ‘Security and Growth for All in the Region’ It is an initiative of the ‘ASEAN+6’ It is the brainchild of India to specifically boost India-ASEAN trade relations It was launched during the 12th ASEAN India Summit Select the correct statements 1 Only 1 and 3 1, 2 and 3 None of the above Q.2) Which of the following statements with respect to ‘National Security Council’? It is a three member constitutional body. It is headed by the Union Minister of Home Affairs. Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.3) Consider the following statements with respect to ‘Central Administrative Tribunal’ The Central Administrative Tribunal is to be headed by the retired Chief Justice of India. The Central Administrative Tribunal is empowered to frame its own rules of procedure and practice. Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.4) Which of the following statements is/are correct? The Puducherry legislature was created through a parliamentary law, based on an enabling provision in Article 239A of the Constitution The Governor of Tamil Nadu is the administrator of the Union Territory of Puducherry Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.5) ‘Vikramshila Gangetic Dolphin Sanctuary is located in which of the following states? Gujarat Andaman and Nicobar Islands Bihar Arunachal Pradesh To Download the Solution - Click here All the Best  IASbaba

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Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 10th June 2019

IAS UPSC Prelims and Mains Exam – 10th June 2019 Archives (MAIN FOCUS) All states, union territories can now set up foreign Tribunals Part of: Prelims and Mains GS Paper II Polity In News In the backdrop of updation process of National Register of Citizen in Assam, Ministry of Home Affairs has amended the Foreigners (Tribunals) Order, 1964. Amendments: The amended order has empowered District Magistrates in all States and Union Territories to set up tribunals to decide whether a person staying illegally in India is a foreigner or not. Earlier, the powers to constitute tribunals were vested only with the Centre. The amended Foreigners (Tribunal) Order, 2019 also empowers individuals to approach the Tribunals. Do you Know? National Register of Citizens (NRC) National Register of Citizens, 1951 was a register prepared after the conduct of the Census of 1951. Any citizens whose does not find his/her name in NRC shall be considered as foreigner under Foreigner’s Act, 1946 and shall be liable for deportation. NRC regards all migrants who have come to India after March, 24, 1971 as illegal irrespective of their religion. Such illegal immigrant needs to be deported back to their home country as per Assam Accord Sportswear giant set to tap Indian firms’ PET project to cut virgin plastic use Part of: Environment and Ecology, Mains GS paper III: Environmental conservation In News: Adidas aims at eliminating the use of virgin plastics in its products by 2024. According to the United Nations, around 300 million tonnes of plastic are produced every year with eight million tonnes of plastic waste ends up in the oceans. PET bottles are the main contributors to plastic waste globally and in India. It is taking help of Polygenta Technology Limited, a Maharashtra based company which is the only one company in the country to produce yarn out of discarded PET bottles. Recycling in India; Downcycling and Upcycling PET material collection rate in India is nearly 80% — among the best in the world — but a good portion of these bottles are downcycled, eliminating the possibility of further recycling. Downcycling is reuse of waste in a manner that the recycled product is of lower value than the original material. The PET recycling by PTL uses an upcycling process which consumes 86% less water and 75% less energy than conventional manufacturing. However, it costs approximately 10% more. Miscellaneous Mula Mutha River: ₹990-crore river cleaning project, a ‘gift from the Centre’, has been fast-tracked Formalin, used to preserve fish, is harmful to human and ecosystem health NATIONAL TOPIC: General studies 3: Issues related to direct and indirect farm subsidies and minimum support prices Inclusive growth and issues arising from it. General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Indian Agriculture: Improving global competitiveness Background: Indian industry is today complaining that the rural demand is collapsing. Tractor sales are down by 13 per cent, two-wheeler sales are down by 16 per cent, car sales are down by similar percentage, and even FMCG (fast move consumer goods) sales are down in April 2019 over April 2018. One of the reasons is that India has never had any major agri-reforms and farmers’ incomes have remained very low. So, if industry wants to prosper, we must aim at an agri-GDP growth of more than 4 per cent. Issues: Need to raise farm productivity in a manner that can cut down unit costs and make Indian agriculture more competitive, enabling higher exports. Officials managing agri-trade need to pay heed to this massive failure as it has implications not only for overall agri-GDP growth, but also for slowing down of manufacturing growth due to sluggish demand for industrial products in rural areas. Restrictive policies constrain the private sector from building direct supply chains from farms to ports, which bypass the mandi system. This leads to a weak infrastructure for agri-exports. The net result of all this is that Indian farmers do not get full advantage of global markets. An obsessive focus on inflation targeting by suppressing food prices through myriad controls works against the farmer. Improving global competitiveness: Investment in agri-R&D. Today, India spends roughly 0.7 per cent of agri-GDP on agri-R&D and extension together. This needs to double in the next five years. The returns are enormous. Example: The meagre investments in Pusa Basmati 1121 and 1509, for example, have yielded basmati exports between $ 4 and 5 billion annually. The returns from the sugarcane variety Co-0238 in Uttar Pradesh are similarly impressive. The recovery ratio has increased from about 9.2 in 2012-13 to more than 11 per cent today. Massive investments are also needed in managing our water resources more efficiently, to produce more with less. Investment in infrastructure for agri-exports value chains. Conclusion: Augmenting productivity should be accompanied with pushing for export markets. Improving competitiveness in Indian agriculture is must if the dream of doubling farmers’ income by 2020 needs to be achieved. Connecting the dots: Indian agriculture lacks global competitiveness. Analyze critically. INTERNATIONAL TOPIC: General studies 2: India and the World International Relations Policies of developed and developing countries and their impact on India’s interests Foreign Policy Challenges Background: The world looks more disorderly in 2019 than was the case five years ago. U.S. President Donald Trump’s election and the new dose of unpredictability in U.S. policy pronouncements. The trade war between the U.S. and China which is becoming a technology war. Brexit and the European Union’s internal preoccupations. Erosion of U.S.-Russia arms control agreements and the likelihood of a new arms race covering nuclear, space and cyber domains. The U.S.’s withdrawal from the Iran nuclear deal and growing tensions between Saudi Arabia and Iran. Above are some of the developments that add to the complexity of India’s principal foreign policy challenge of dealing with the rise of China. Redefining neighbourhood: Pakistan: Despite good planning there is always the risk of unintended escalation as Balakot (this year) and the downing of an Indian Air Force (IAF) MiG-21 showed. In the absence of communication channels between India and Pakistan, it appears that the U.S., Saudi Arabia and the United Arab Emirates played a role in ensuring the quick release of the IAF pilot, Wg. Cdr. Abhinandan Varthaman, thereby defusing the situation. Unless the Modi government wants to outsource crisis management to external players, it may be better to have some kind of ongoing dialogue between the two countries. Other neighbors: Translating India’s natural weight in the region into influence was easier in a pre-globalised world and before China emerged in its assertive avatar. It is preferable to work on the basis of generating broad-based consent rather than dominance. This necessitates using multi-pronged diplomatic efforts and being generous as the larger economy. It also needs a more confident and coordinated approach in handling neighbourhood organisations — SAARC, BIMSTEC, the Bangladesh, the Bhutan, India, Nepal Initiative, the Bangladesh-China-India-Myanmar Forum for Regional Cooperation, the Indian Ocean Rim Association. Above should be preferably in tandem with bilateralism because our bilateral relations provide us with significant advantages. Managing China: China will remain the most important issue, as in 2014. The policy followed was of growing economic, commercial and cultural relations while managing the differences on the boundary dispute through dialogue and confidence-building measures, in the expectation that this would create a more conducive environment for eventual negotiations. The Doklam stand-off was a rude reminder of that the assumption behind the policy followed for three decades could no longer be sustained. The informal summit in Wuhan restored a semblance of calm but does not address the long-term implications of the growing gap between the two countries. Meanwhile, there is the growing strategic rivalry between the U.S. and China unfolding on our doorstep. We no longer have the luxury of distance to be non-aligned. Managing U.S.: A number of issues have emerged that need urgent attention. As part of its policy on tightening sanctions pressure on Iran, the U.S. has terminated the sanctions waiver that had enabled India to import limited quantities of Iranian crude till last month. The Generalised System of Preferences scheme has been withdrawn, adversely impacting about 12% of India’s exports to the U.S., as a sign of growing impatience with India’s inability to address the U.S.’s concerns regarding market access, tariff lines and recent changes in the e-commerce policy. The threat of sanctions under the Countering American Adversaries Through Sanctions Act (CAATSA), were India to proceed with the purchase of the S-400 air and missile defence system from Russia. The reconciliation talks between the U.S. and the Taliban as the U.S. negotiates its exit from Afghanistan raise New Delhi’s apprehensions about the Taliban’s return, constituting another potential irritant. Way forward: India lacks the ability to shape events around it on account of resource limitations. These require domestic decisions in terms of expanding the foreign policy establishment though having a seasoned professional at the top does help. We need to ensure far more coordination among the different ministries and agencies than has been the case so far. Our record in implementation projects is patchy at best and needs urgent attention. The focus on the neighbourhood is certainly desirable, for only if we can shape events here can we look beyond. However, the fact that China too is part of the neighbourhood compounds Mr. Modi’s foreign policy challenges in his second term. Employing external balancing to create a conducive regional environment is a new game that will also require building a new consensus at home. Connecting the dots: Recent developments have added to the complexity of India’s principal foreign policy challenge of dealing with the rise of China. Discuss strategies to deal with the situation. (TEST YOUR KNOWLEDGE) Model questions: (You can now post your answers in the comment section) Note: Featured Comments and comments Up-voted by IASbaba are the “correct answers”. IASbaba App users – Team IASbaba will provide correct answers in comment section. Kindly refer to it and update your answers. Q.1) Which of the following cities is/are located on Mula Mutha River? Mumbai Pune Nagpur Select the correct statements 1 and 2 2 only 1 and 3 1, 2, and 3 Q.2) Recently “Formalin” has been in news. It is, Harmful chemical used to preserve fish Antibiotic used for marine health Second line drug for drug resistant TB None of the above MUST READ Why language matters The Hindu Artificial Intelligence, the law and the future The Hindu India and the Sino-Russian relations Indian Express

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UPSC Quiz - 2020 : IAS Daily Current Affairs Quiz Day 3

UPSC Quiz - 2020 : IASbaba’s Daily Current Affairs Quiz Day 3 Archives Q.1) Which of the following statements is/are correct? Although cyclones affect the entire coast of India the East Coast is more prone compared to the West Coast. Over 90 % of the cyclones that develop over the Arabian Sea approach the West Coast of India. Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.2) Which of the following statements is/are correct with respect to ‘Tropical Cyclones’? It helps to maintain equilibrium in the Earth’s troposphere It helps maintain a relatively stable and warm temperature worldwide It helps relieve drought conditions Select the correct statements 1 and 2 2 and 3 1 and 3 All of the above Q.3) Which of the following statements with respect to ‘Leader of Opposition (LoP)’ is are correct? The first LoP was designated only in 1991 To be the LoP in Lok Sabha, the party needs to have more than 100 seats Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.4) Consider the following statements with respects ‘Pro tem Speaker’ The appointment of the Pro Tem Speaker needs no approval of the President. In absence of the Speaker, the first priority to act as a Speaker is given to the Pro Tem Speaker. Select the correct statements 1 Only 2 Only Both 1 and 2 Neither 1 nor 2 Q.5) ‘VG Kannan Committee’ was in news recently. It is associated with New Education Policy ATM interchange fee Inter-creditor Agreement Country-by-Country Report To Download the Solution - Click here All the Best  IASbaba

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Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 8th June 2019

IAS UPSC Prelims and Mains Exam – 8th June 2019 Archives (MAIN FOCUS) NATIONAL TOPIC: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes. Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. Important aspects of governance and related issues. Creating a Welfare State Background: Housing, sanitation, gas connections (Ujjwala), direct benefit transfers (DBT), income support (PM-Kisan) —were few of the welfarist programmes launched by the last government. In their implementation, these schemes had ambitious targets, tight centralised monitoring and outreach resulting in an accelerated pace of activity. But they also brought to the fore deeply contested questions about the architecture of the welfare state, its functions and capability. The effectiveness of welfare policy will rest on the government’s willingness to invest in building state capacity. Building a competent welfare bureaucracy: Targeted programmes like PM-Kisan require bureaucrats to identify eligible beneficiaries. To do this, critical data like land records and socio-economic caste census needs to be regularly updated and disputes between claims of citizens and official records should be negotiated. Getting the DBT architecture right requires bureaucrats to engage citizens and coordinate across departments — a skill that Indian bureaucrats simply do not possess. Countries like Brazil and Mexico have invested in large cadres of social workers at the local government level to do just this. But in the rush to bypass bureaucrats through DBT and transfer cash directly into bank accounts, this crucial investment has been ignored. Solution: The success of welfare programmes in Modi 2.0 will depend on willingness to recognise that building a competent welfare bureaucracy, even if it’s only task is to move money, will require empowering local governments with skills and resources. Active citizen participation: Responsive governments require active citizen participation. Digitised efficiency risks casting citizens as passive recipients of government largesse rather than active claimants of rights. Digitised welfare systems genuinely risk closing off spaces for citizens to complain, protest and demand accountability when rights are denied. Solution: A balance needs to be struck between efficiency gains through centralised control and responsiveness through decentralised, citizen-centric governance. Health sector: With Ayushman Bharat, a significant step was taken towards an architectural shift in India’s welfare system, away from direct provisioning towards financing citizens and regulating private providers. But can a state that struggles with routine tasks regulate a sector as complex as healthcare? The staffing requirement, in Uttar Pradesh alone, would amount to 10,000 employees. Importantly, in a sector like health where predatory practices are rife, well-functioning government hospitals are a necessary check and balance. Regulation cannot be a substitute for investing in public systems. Ayushman Bharat must be complemented with a concerted focus on strengthening public hospitals. Flexibility to States: The multiplicity of central schemes has served to entrench a silo-driven, one-size-fits-all approach that is inefficient as it fails to capture state-specific needs.   Addressing overlaps and complementarities within existing schemes needs to be checked. The World Bank’s social protection analysis calls for developing a national social protection strategy with a core basket of schemes that states can adapt to their needs. Greater flexibility to states was also recommended by the Niti Aayog’s chief ministers sub committee report in 2016. Implementing these recommendations will require a radical shift in the role of the central government away from designing and controlling schemes to strategic thinking and supporting states. Resolving India’s learning crisis: The newly-released national education policy emphasises the urgent need to ensure all students achieve foundational literacy and numeracy. This needs to be adopted and implemented in mission mode. Conclusion: India doesn’t need new schemes, rather it needs consolidation and balancing between competing welfare strategies. Getting this right will require significant investments in state capacity. Connecting the dots: In order to create a welfare state it is must that the government invests in building state capacity. Elucidate. MUST READ The great Indian celebration The Hindu The only mantra Indian Express

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Daily Current Affairs IAS | UPSC Prelims and Mains Exam – 7th June 2019

IAS UPSC Prelims and Mains Exam – 7th June 2019 Archives (MAIN FOCUS) NATIONAL TOPIC: General Studies 2: Government policies and interventions for development in various sectors and issues arising out of their design and implementation. Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and bodies constituted for the protection and betterment of these vulnerable sections Issues relating to development and management of Social Sector/Services relating to Health, Education, Human Resources. The draft National Education Policy, 2019 In news: The draft National Education Policy, 2019 is out in the public domain, with comments sought from all stakeholders. Drawing inputs from the T.S.R. Subramanian Committee report and the Ministry of Human Resource Development (MHRD), the K. Kasturirangan Committee has produced a document that is comprehensive, far-sighted and grounded in realities. Unique features of the policy: The draft policy seeks to revamp all aspects of the sector and suggests brave new ideas. The idea that lifelong education is based on four pillars — learning to know, learning to do, learning to live together and learning to be — has inspired the committee to cover every aspect of the education sector: school, higher, vocational and adult education. It also includes the whole gamut of professional education — engineering, medicine, agriculture, law, etc. Early childhood education: In school education, the idea is to cover children of 3-18 years [instead of the present 6-14 years under the Right to Education (RTE) Act], three years under early childhood care and education (ECCE) and four years under secondary education. Restructuring the 10+2 education structure into a 5+3+3+4 structure so that the five years from ages three to seven or till the end of Std 2 are seen as one “foundational stage”. The next two stages, of three years each, are “preparatory” and “upper primary”, first ensure the acquisition of foundational skills and then their development. These stages are not only consistent with the development of children, but they are also useful to meet the overall goal of ensuring basic learning outcomes stage-by-stage. Higher education: The aim is to double the Gross Enrolment Ratio from 25% to 50% by 2035 and make universities the hubs of research. - Tier I universities/institutions devoted primarily to research and some teaching. - Tier 2 universities devoted to teaching and some research,. - Tier 3 institutions comprising mainly colleges that are to be converted gradually into degree-giving autonomous institutions. Achieve ‘universal foundational literacy and numeracy’ through initiatives like the National Tutors Programme and the Remedial Instructional Aides Programme. Introduction of school complexes, a system of modular Board Examinations to allow flexibility, setting up Special Education Zones in disadvantaged regions, recognising teachers at the heart of the system, moving teacher education into the university system, and stressing the importance of learning new languages are among the key recommendations. The policy recommends community and volunteer participation in collaboration with schools to overcome the current crisis. Schools generally work in isolation from the community they serve. The policy recognises the crucial importance of liberal arts (it recommends setting up five Indian Institutes of Liberal Arts offering four-year courses) and the study of modern and classical languages (it recommends setting up National Institutions for Pali, Prakrit and Persian). It proposes separate institutions for regulation, funding, standard setting and accreditation, a National Research Foundation, and a Rashtriya Shiksha Aayog/ National Education Commission. Vocational education, meant for 50% of the students, is sought to be integrated with school and higher education. Challenges in implementation: Doubling of public funding to 6% of the GDP and increasing overall public expenditure on education to 20% from the current 10%. This is desirable but does not appear to be feasible in the near future given that most of the additional funding has to come from the States. Though innovative financing schemes have been proposed, involving the private sector, how those schemes will shape up remains to be seen. Expanding coverage under the RTE Act is extremely important, but should be introduced gradually, keeping in mind the quality of infrastructure and teacher vacancies. The idea of regulation being brought under the National Higher Education Regulatory Authority, standard setting under the General Education Council and funding under the Higher Education Grants Council may require a revisit so that there is synchronisation with the current Bill for the Higher Education Commission of India. Language issues have to be handled sensitively in view of their emotional overtones, as witnessed recently. Conclusion: The “learning crisis” is very deep. The education system — public and private — has been deteriorating rapidly and has affected the quality of our human resources. If this trend is not reversed, the dysfunctional system will become more and more expensive but will not deliver the goods. It will require a huge commitment and conviction to make it happen. Connecting the dots: Discuss unique features of the draft National Education Policy, 2019. Also comment on the challenges in implementation of suggested recommendations. ECONOMY TOPIC: General Studies 3: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment. The Nandan Nilekani panel on deepening digital payments In news: The RBI constituted the five-member committee in January to review the status of digitization of payments, identify gaps in the ecosystem, and suggest ways of plugging them. It was tasked to suggest a medium-term strategy for deepening digital payments and measures to strengthen safety and security. The high-level committee on deepening of digital payments, led by Infosys co-founder Nandan Nilekani, has recommended a reduction in costs to widen the acceptance infrastructure and improve digital financial inclusion. The report noted that while the digital payments ecosystem has made substantial progress on the issuance side, there needs to be an improvement on the demand or acceptance side of the ecosystem. Background: Per capita digital transactions stand at 22 in March 2019 and are expected to increase to 220 by March 2022, according to the committee. This will lead to an increase in the number of users of digital transactions from 100 million to 300 million. At present, India has a large currency in circulation to GDP ratio, when compared with other countries. Recommendations: Reduction in Fees & Taxes: 15-basis-point cut in the interchange fee for use of banks’ ATM networks by customers of other banks make sense. A major suggestion to increase both digital acceptance and tax compliance is that businesses be provided with tax incentives calibrated on the proportion of digital payments in their receipts. Removal of all charges on digital payment transactions for the convenience of customers. The government should continue the current scheme to refund the merchant discount rate for small value transactions (under₹2,000) beyond December 2019 for another two years. Improving ease of usage: To move away from plastic, and let the merchant use only the phone and a QR code. This will make digital payments seamless and convenient for customers. Merchants can generate their own code that will be interoperable with banks, doing away with card-swipe terminals. The panel also recommended the creation of a No-KYC wallet with a maximum value of ₹2,000 in the wallet and maximum spending capped at ₹10,000 per month, with the aim of boosting digital payments. Expanding the horizon: To expand the UPI payments platform to foreign currency remittances by the NRIs and to settle residents’ payments when they travel overseas — just as Chinese users can use WeChat — makes eminent sense. Another is that the Reserve Bank of India (RBI) consider setting up an acceptance development fund, which is used to develop new merchants in poorly served areas. Creation of a digital financial inclusion index so that progress in an area can be measured along a common scale, indicating the evolution of the users and steps taken for correcting the imbalance. The government, being the single-largest participant in payments, take the lead on all aspects of digitisation of payments. Need to provide citizens with the option to pay digitally for all payments to government and public sector agencies. Improving security: The RBI and the Centre to put in place a mechanism to monitor digital payment systems and make aggregated information based on blocks and PIN codes, available to all players on a monthly basis. Conclusion: The Reserve Bank of India (RBI) and the government must target growth in the volume of digital payments by a factor of 10 in three years, leading to doubling in value relative to gross domestic product (GDP), as per the committee. This growth will be driven by a shift from high-value, low-volume, high-cost transactions to low-value, high-volume, low-cost transactions. Connecting the dots: The digital payments ecosystem has made substantial progress in India. In this light discuss the recommendation of the Nandan Nilekani panel on deepening digital payments.

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