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"Supreme Court Collegium Recommends Prashant Kumar Mishra and KV Viswanathan as Supreme Court Judges"

Context: The Supreme Court Collegium headed by Chief Justice of India D Y Chandrachud on Tuesday recommended the appointment of Andhra Pradesh High Court Chief Justice Prashant Kumar Mishra and senior advocate K V Viswanathan as Judges of the Supreme Court.

If appointed, Viswanathan would be in line to serve as Chief Justice of India from August 12, 2030, till May 25, 2031. He would be the fourth CJI from the Bar — after former CJIs S M Sikri in 1971 and U U Lalit last year, and Justice P S Narasimha, who is in line for the top post in 2028

Appointment of Judges: Article 124

  • The judges of the Supreme Court are appointed by the president.
  • The chief justice is appointed by the president after consultation with such judges of the Supreme Court and high courts as he deems necessary. 
  • The other judges are appointed by president after consultation with the chief justice and such other judges of the Supreme Court and the high courts as he deems necessary.
  • The consultation with the chief justice is obligatory in the case of appointment of a judge other than Chief justice.

Qualifications of Judges

A person to be appointed as a judge of the Supreme Court should have the following qualifications:

1. He should be a citizen of India.

2. (a) He should have been a judge of a High Court (or high courts in succession) for five years; or (b) He should have been an advocate of a High Court (or High Courts in succession) for ten years; or (c) He should be a distinguished jurist in the opinion of the president.

From the above, it is clear that the Constitution has not prescribed a minimum age for appointment as a judge of the Supreme Court.

What is collegium?

  • The Collegium System is one where the CJI and a forum of four senior-most judges of the Supreme Court recommend appointment and transfer of judges of higher judiciary.
  •  The collegium system evolved through three different judgments which are collectively known as the Three Judges Cases.
  • Now, recommendations of collegium have been made public on the website of Supreme Court including the reasons for appointment or transfer.

FIRST JUDGES CASE - S.P GUPTA VS. UNION OF INDIA (1982) – (IN FAVOUR OF EXECUTIVE)

  • SC held - opinions of Chief Justice of India (CJI) and Chief Justice of respective High Courts were merely “consultative” and the power of appointment resides solely and exclusively with the Central Government.
  • Central government “could” override the opinions given by the Judges. Thus, the opinion of Chief Justice of India in matters of appointment was not given primacy in matters of judicial appointments under Article 217(1).

SECOND JUDGES CASE - S.C. ADVOCATES ON RECORD ASSOCIATION V. UNION OF INDIA (1993) – (PRIMACY OF JUDICIARY) – THE MATTER WAS DECIDED BY NINE JUDGE CONSTITUTION BENCH

  • The Court considered the question of “Primacy of opinion of CJI in regard to appointment of Supreme Court Judges”. 
  • Referring to ‘Consultative Process’ as envisaged in Article 124(2), SC emphasized that Government does NOT enjoy primacy or absolute discretion in matters of appointment of Supreme Court judges.
  • Court said that provision for consultation with Chief Justice was introduced as CJI is best equipped to know and assess the worth and suitability of a candidate and it was also necessary to eliminate political influence.
  • Selection should be made because of ‘Participatory Consultative Process’ where Executive has the power to act as a mere check on the exercise of power by CJI to achieve constitutional purpose.
  • SC held that initiation of the proposal for appointment of a Supreme Court Judge must be by the Chief Justice.

THIRD JUDGES CASE - (1999) - RE: PRESIDENTIAL REFERENCE (EMERGENCE OF COLLEGIUM SYSTEM)

  • Supreme Court on a reference made by the President under Article 143 has laid down the following proposition with respect to appointment of Supreme Court judges:
  • While making recommendation, CJI shall consult four senior most Judges of Supreme Court. This led to the emergence of present Collegium System.
  • the opinion of all members of collegium regarding their recommendation shall be in writing.
  • the views of the senior-most Supreme Court Judge who hails from the High Court from where the person recommended comes must be obtained in writing for Collegium’s consideration.
  • If majority of the Collegium is against the appointment of a particular person, that person shall not be appointed.
  • Even if two of the judges have reservation against appointment of a particular Judge, CJI would not press for such appointment.
  • A High Court Judge of outstanding merit can be appointed as Supreme Court Judge regardless of his standing in the seniority list.

National Judicial Appointment Commission Act, 2014 declared as Unconstitutional

  • Violation of Basic Structure - Five Judge Bench of Supreme Court [4:1] declared the Constitution 99th Amendment Act and the National Judicial Appointment Commission Act, 2014 as unconstitutional as it violated the Basic Structure of the Indian Constitution.
  • Inclusion of Members of Executive - Constitution 99th Amendment introduced Article 124A which provided for the constitution and composition of the National Judicial Appointments Commission (NJAC) which apart from members of Judiciary also included Union Minister of Law & Justice and two Eminent Persons to be appointed by the Central Government.
  • Violation of Independence of Judiciary - SC held that Article 124A was insufficient to preserve the primacy of the judiciary, in the matter of selection and appointment of Judges to the higher judiciary as inclusion of members of executed violated independence of judiciary and the aspect of separation of powers. Accordingly, Article 124A (a) to

Kuki-Meities Conflict in Manipur

Context: Manipur’s Kuki Zomi tribes are in conflict with the majority Meitei tribe which has tolled over 60 people in the state. MLAs belonging to the Kuki Zomi tribe now demand separate administration within the state.

History of Kuki’s Homeland demand

  • Demand for the separate Kuki Homeland has been burning since the 1980s when one Kuki insurgent group Kuki National Organisation (KNO) came into being. 
  • After the acceptance of the new state of Telangana, there was a resurgence of demand for Kukiland by the Kuki State Demand Committee. It claims over 60 per cent of Manipur's area. They argued that Kuki habitations were not part of the British Protectorate after the Anglo-Manipur war in 1891. Hence, India cannot claim any rights over this tribal group or its habitation. 
  • KNO has also complained about the grabbing of Kuki land by Naga insurgent groups.

About the Kuki Tribe:

  • Kukis are known by different names to different communities. 
  • Some called them Lushai, some called them Kukis, Darlongs, Rokhums and among the Burma border they are known as Chins. 
  • They called themselves Hare-ems. However ‘Kuki’ has been accepted as the generic name for the community.
  • As per 2011 Census all together Kukis are 10,965 persons in Tripura. In the past they lived in hill tops and maintained their livelihood through jhum cultivation and also by producing fruits. 
  • Now-a-days they do plain land cultivation and rear livestock. 
  • Linguistically they speak a language which is closely related to the Kuki-Chin linguistic family of Sino-Tibetan race. The Kukis have many clans and subclans.
  • Kukis are fond of music and dance. They work hard in Jhum field, garden and enjoy dance and music at community level. 
  • Normally they do not arrange any marriage alliance outside their community. Traditionally they were not Christian but animist and worship different deities and spirits. But for the last 90(ninety) years the majority of them have embraced Christianity as their religion. 
  • They have their own customary laws and village council. 
  • LAL is a term to denote village chief. This is the reason for which Darlong uses Lal before their name.
  • The village chief generally looks up all sorts of social and religious disputes Including disputes related to marriage and divorce. 
  • Presently Kukis are socio-economically advanced then other tribes.

About Meitei Tribe:

  • It is a majority tribal group of Manipur (53% of the population). They speak Meitei language (Manipuri language) which is a Tibeto-Burman language, also the official language of Manipur (written in Bengali language).
  • They are primarily settled in the Imphal Valley region (of Manipur), Assam, Tripura, Nagaland, Meghalaya, and Mizoram.
  • They are divided into various clans and do not intermarry.
  • Majority of them follow Hinduism, while more than 8% are Muslims.
  • Manipuri martial art Thang-ta is a combative sport which had its origin from the Meitei knights during the kings rule.
  • Lai Haraoba is the important dance festival celebrated in this tribe.

India moves closer to getting its first indigenous vaccine against dengue

Context: Moving a step closer to developing India’s first vaccine against dengue, drug-makers Serum Institute of India and Panacea Biotec have submitted their responses to the call by the Indian Council of Medical Research (ICMR) for an Expression of Interest for collaborative Phase 3 clinical trials for indigenous manufacturers.

Major Highlights:

  • The Phase 3 trial is being done for evaluation of efficacy, along with safety and immunogenicity of tetravalent dengue vaccine candidate developed by Indian manufacturers. Trials could start close to August 2023 for the adult vaccine.
    • Serum Institute of India’s vaccine initiated one/two studies in the paediatric population and the plan for Panacea’s vaccine is to conduct Phase 3 randomised, double-blind, placebo-controlled trial in 10,335 healthy adults (aged 18-80) in 20 sites (ICMR-funded).
  • The desirable characteristics of a dengue vaccine include:
    • Acceptable short- and long-term safety profile (no antibody-dependent enhancement), inducing protection against all four serotypes of dengue, reducing the risk of severe diseases and deaths. 
    • Inducing a sustained immune response and effectiveness irrespective of the earlier serostatus and age of the individual.
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Dengue:

  • Dengue fever is a viral illness caused by the dengue virus, which is transmitted to humans through the bite of infected Aedes mosquitoes, primarily Aedes aegypti. Dengue cannot spread directly from person to person.
  • Dengue is commonly found in tropical and subtropical regions around the world, especially in urban and semi-urban areas.
  • Symptoms: Dengue fever typically presents with flu-like symptoms, including high fever, severe headache, joint and muscle pain, and rash. In severe cases, dengue can lead to dengue hemorrhagic fever (DHF) which can be life-threatening.
  • Treatment: There is no specific antiviral treatment for dengue fever and early detection and access to proper medical care greatly lower fatality rates of severe dengue. Prevention and control of dengue depend on vector control. 

Dengue causes significant morbidity and mortality across the globe and in India, 2 to 2.5 lakh cases are reported annually. In 2019, the World Health Organization (WHO) identified dengue to be one of the top 10 global health threats.

Sanchar Saathi Portal

About Sanchar Saathi Portal

Sanchar Saathi Portal

Sanchar Saathi portal is a citizen centric initiative of the Department of Telecommunications to empower mobile subscribers, strengthen their security and increase awareness about citizen centric initiatives of the Government. 

The portal empowers citizens by allowing them to know the mobile connections issued in their name, get disconnected the connections not required by them, block/trace lost mobile phones and check genuineness of devices while buying a new/old mobile phone.

Modules of Sanchar Saathi Portal

  • CEIR module facilitates tracing of the lost/stolen mobile devices. This also facilitates blocking of lost/stolen mobile devices in the network of all telecom operators so that lost/stolen devices cannot be used in India. If anyone tries to use the blocked mobile phone, its traceability is generated. Once a mobile phone is found it may be unblocked on the portal for its normal use by the citizens.
  • TAFCOP module facilitates a mobile subscriber to check the number of mobile connections taken in his/her name. It also facilitates reporting of mobile connection(s) which are either not required or not taken by the subscriber.
  • Keep Yourself Aware facility provides latest updates and awareness material on different aspects related to end user security, telecom and information security.

FAQs:

What is Sanchar Saathi Portal?

The Sanchar Saathi Portal is a comprehensive platform launched by the Department of Telecommunications (DoT) to help users track their mobile connections, block lost or stolen phones, verify connections, and prevent telecom fraud.

What are the key features of Sanchar Saathi Portal?

CEIR (Central Equipment Identity Register): Allows users to block or track lost/stolen mobile phones.
TAFCOP (Telecom Analytics for Fraud Management and Consumer Protection): Helps users verify the number of mobile connections issued in their name.
KYC Verification: Ensures that telecom connections are issued only after proper verification.

Can I block a mobile device if I haven’t filed a police complaint?

No, a police complaint or FIR is mandatory to block a lost or stolen device using the Sanchar Saathi Portal.

Can I track my lost phone using the Sanchar Saathi Portal?

Yes, after registering a complaint on CEIR, you may track the status of your device. If it is found to be operational on any network, the system will notify you.

Expected Loss Approach for Provisioning

Context: Lenders have sought a one-year extension from the Reserve Bank of India (RBI) for implementation of the Expected Credit Loss (ECL)-based loan loss provisioning framework.

Provisions

A loan loss provision is an expense that is set aside for defaulted loans. Banks set aside a portion of the expected loan repayments from all loans in their portfolio to cover the losses either completely or partially.

  • In the event of a loss, instead of taking a loss in its cash flows, the bank can use loan loss reserves to cover the loss.
  • An increase in the balance of reserves is called loan loss provision. The level of loan loss provisions is determined based on the level expected to protect the safety and soundness of the bank.

What is the current approach for Provisioning?

  • Presently, banks are required to make loss provisions based on 'Incurred Loss Approach', where banks need to provide for losses that have occurred/incurred.
  • Example: Banks in India are required to make provisions of 15% of outstanding in case of secured loans and 25% of outstanding for unsecured loans, when a loan exposure is classified as NPA. This provisioning must be made after the loan has been classified as an NPA.
  • However, there have been issues of lag in identifying credit risks and the procyclical nature of incurred loss approach. This leads to significant delays and erosion of bank capital during downturns respectively.

Expected Loss Approach for Provisioning

  • In January 2023, the RBI came out with a draft guidelines proposing adoption of expected credit loss approach for credit impairment. As per the draft, banks will be given a one year period after the final guidelines are released for implementation of expected credit loss approach for loss provisioning.
  • Expected credit losses represent a probability weighted estimate of the present value of all cash shortfalls from an instrument.
  • Banks will classify financial assets (primarily loans, including irrevocable loan commitments and investments classified as held-to-maturity or available for sale) into following three categories:
  • Stage I: Includes financial assets that have not had a significant increase in credit risk since initial recognition or that have low credit risk at reporting date. 
  • Stage II: Includes financial instruments that have had a significant increase in credit risk since initial recognition (unless they have low credit risk at the reporting date) but that do not have objective evidence of impairment.
  • Stage III: Includes financial assets that have objective evidence of impairment at the reporting date. For these assets, lifetime expected credit loss is recognised and interest revenue is calculated on the net carrying amount.

Sexual Harassment at Workplace [POSH Act]

Context: Sexual Harassment of Women at Workplace (Prevention, Prohibition and Redressal) Act, 2013 (POSH Act) is framed to provide protection to women at workplace against sexual harassment. The Act lays down rules for prevention and redressal of sexual harassment complaints by female workers.

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Salient features of the act

  • The act defines sexual harassment at the work place and creates a mechanism for redressal of complaints.  It also provides safeguards against false or malicious charges.
  • Every employer is required to constitute an Internal Complaints Committee (ICC) at each office with 10 or more employees.  The District Officer is required to constitute a Local Complaints Committee at each district, and if required at the block level.
  • The Complaints Committees have the powers of civil courts for gathering evidence.
  • Summoning and requiring the attendance of any person and interrogating him under oath; 
  • Requirement to discover and produce documents.
  • The Complaints Committees are required to provide for conciliation before initiating an inquiry, if requested by the complainant. 
  • Non-compliance with the provisions of the Act shall be punishable with a fine of up to Rs 50,000.  Repeated violations may lead to higher penalties and cancellation of licence or registration to conduct business.  

Issues with the implementation of the act:

Legal shortcomings: 

  • Powers of civil court have been given to Internal Complaints Committee without specifying if members need to have a legal background.
  • Very modest fine of Rs 50,000 for non-compliance with the act is not enough deterrent.
  • Employer nominates members to Internal Complaints Committee (Conflict of Interest).
  • Prior internal inquiry and mandate for is misused promotes a culture of suppression of legitimate complaints to avoid the concerned establishment falling into disrepute.
  • Provision of conciliation in the act treats a criminal act as a civil dispute.
  • Law provides a punishing a woman if she is found to have filed a false or malicious complaint which is completely abusive provision intended to nullify the objective of law.
  • No data: Government maintains no centralised data relating to cases of harassment of women at workplaces, do not publicly compile and release data on how many companies and districts comply with guidelines and have committees, number of complaints filed and outcome of these complaints.
  • Local Complaints Committee dysfunctional: 95% of India's women workers are employed in informal sector, but Local Committees to be formed under POSH Act have either been not formed in most districts or is not well publicised about leaving women in informal sector with no avenue to report.
  •  Social challenges: Women are discouraged to report sexual harassment incidents because of fear of being forced to withdraw from work by the family members.
  •  Digital divide: Women can also file complaints through Women and Child Development Ministry's SHeBox, an online complaint platform for all women workers. But most India's women workers find it difficult to access these redressal methods, especially SHeBox, given the low number of women who use the internet in India is low.

Way forward:

  • Empowering National Commission of Women with power to summon people and carry out independent investigations, impose fines, search and seizure in matters of sexual harassment at workplace.
  • Awareness about the act should be increased among females, added to school and college curriculums. Discussions should be organised around these issues in civil society.
  • Special attention should be given towards sectors where women are most vulnerable to sexual harassment. E.g., Garment sector, Domestic workers.
  • Law needs to be made gender neutral as sexual harassment challenges can be faced even by transgenders and males.
  • Nationwide audit of functioning of Internal Complaints Committee and Local Complaints Committee. Earmarking of budget for the functioning of Local Complaints Committee.

Changes proposed in law:

  1. Removal of penalty for false complaints.
  2. Removal of a need for conciliation between complainant and respondent.
  3. Formation of Local Complaints committee should be at block or tehsil level and not district level.
  4. Justice Verma committee noted that Internal Complaints Committee system should be replaced by Employment Tribunal, as dealing with such complaints in-house could discourage women from coming out.

Insolvency and Bankruptcy Code

Exit from business is as integral to ease of doing business as is an entry. Earlier frameworks for resolution, such as the Debt Recovery Tribunals, the Lok Adalats and even the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act (SARFAESI Act) of 2002, which sought to ease the process of resolution or liquidation failed to do the task effectively.  It was in this context that the government decided to frame and enact the Insolvency and Bankruptcy Code (IBC) of 2016. 

Objective: The IBC, which came into existence in 2016, aimed to create a single, comprehensive framework that would provide a time-bound and cost-effective process for resolving insolvency and bankruptcy. 

Institutional framework: 

image1 1

Process:

The IBC seeks to achieve the stated objectives through a well-defined process that includes various stages, including initiation of insolvency, appointment of an insolvency professional, resolution plan, and liquidation.

InitiationInsolvency Resolution ProcessLiquidation
Minimum amount of default:
- ₹ 1000 (for Individual)
- ₹ 1cr (for Companies)		In case the application is admitted by the adjudicating authority, a moratorium is declared on all the legal proceedings against the debtor until the completion of the CIRP.If either the Resolution plan is rejected by the CoC or failed to be approved by it with in 330 days, the process of liquidation kicks in automatically.
Initiators:
- Debtor
- Secured & Unsecured
creditors
- Employees		A resolution professional is appointed by the NCLT who supersede the board of directors of the debtor company and supervises its assets.The proceeds of liquidation are distributed among secured creditors, unsecured creditors, Govt dues, Preferential share holders etc. in the respective order of priority.
Adjudication Authority:
- DRT (for individuals)
- NCLT (for companies)		The Resolution Professional would help in chalking out a resolution plan and get it approved by the committee of creditors (CoC) with a majority of 66%.

Performance:

The apprehension of losing the business to the resolution applicant in the event of a successful CIRP or the eventual liquidation has instilled a sense of fear in the minds of the Corporate Debtors. This has resulted in improvement in the corporate repayment culture of the bank loans and resultant reduction in the nonperforming assets (NPAs) of the banks in the recent years despite the adverse impact of COVID-19 pandemic on the trade and economy of the country.

Successful examples:

  • In Essar Steel resolution, the creditors managed to recover 925 of ₹49,000 crore of debt outstanding.
  • In Bhushan Steel case, 64% of ₹56,022 crore outstanding was retrieved, whereas Binani Cements in whose case all of the ₹6,469 crore outstanding was recovered.

However, 

  • Out of the 4,376 cases for which the Corporate Insolvency Resolution Process (CIRP) had commenced till now, only 2,653 have been closed, with just 348 (or 13.1 per cent) of those closed being disposed after approval of a debt resolution plan.
  • If we consider the proportion of outstanding credit recovered from defaulters through the resolution process, the figure stands at 39.26% even for the minority of cases resolved through the CIRP, which is not very much higher than the 26 per cent registered for cases dealt with under the SARFAESI Act. The argument that the IBC would be a game changer is yet to be validated.

Challenges:

  • Backlog of cases in the NCLT, which has led to delays in the resolution process. The proportion of NCLT benches to the high number of cases are imbalanced.
  • Another challenge is the lack of infrastructure and trained professionals to manage the insolvency process. At present, there are less than 100 registered insolvency professionals. 
  • Due to the lack of need for minimum experience in handling and managing a company, one might question the ability of the resolution professional.
  • The time limit of 330 days to complete CRIP is proving to be very difficult. For companies having a large number of creditors, will have hindrances in the smooth functioning of the creditor’s committee. 
  • No strict liability of directors for wilfully delaying /concealing insolvency of company

To address these challenges, the government has taken several measures, including increasing the number of NCLT benches, increasing the number of insolvency professionals, and amending the IBC to address practical challenges.

Way forward:

  • The process of mediation be institutionalised and appropriately integrated in the CIRP Regulations with adequate provision to exclude the time taken in the mediation process while reckoning the completion of CIRP within the stipulated timeframe of 180, 270, or 330 days.
  •  Setting up of additional benches of NCLT and National Company Law Appellate Tribunal may be taken on priority to bring down the pendency and adhering to the stipulated timelines.

Despite certain challenges faced so far, it deserves to be recognised that the IBC has significantly contributed to consistent improvement in India’s ranking in the World Bank’s erstwhile ‘Ease of Doing Business’ over the years.  Timely changes/modifications of the existing legislation and expanding to new areas (group insolvency, pre-pack process for all assets, cross-border insolvency regime) would facilitate overall improvement in the insolvency resolution regime of the country.

Rehabilitation Council of India (RCI)

Context: Rehabilitation Council of India (RCI)  is conducting a seminar to facilitate the effective implementation of the National Education Policy and human resource development specifically targeting the empowerment of persons with disabilities.

About Rehabilitation Council of India

  • Rehabilitation Council of India (RCI) is a statutory body established by the Rehabilitation Council of India Act, 1992. 
  • The body functions under the Department of Disability under Ministry of Social Justice & Empowerment.
  • Main mandate of RCI is to standardise, regulate and monitor training programs in the field of special education and disability and prescribe minimum standards of education and training for 16 categories of professionals and personnel allocated for RCI. 

Objectives of Rehabilitation Council of India

  • Regulate & monitor training programs in the field of disability rehabilitation & special education.
  • Prescribe minimum standards of education & training for various categories of human resources dealing with persons with disabilities.
  • Regulate these standards in all training institution to bring about uniformity throughout India.
  • Make recommendations to the Ministry regarding recognition of qualification granted by Training Institution, Universities etc. in India for rehabilitation professionals/personnel.
  • Make recommendations to Ministry regarding recognition of qualification granted by institution outside India under the scheme of reciprocity.
  • Maintain Central Rehabilitation Register (CRR) of persons possessing recognised rehabilitation qualification.
  • Encourage continuing rehabilitation education program at approved institution.
  • Promote research in disability rehabilitation and special education.

Functions of Rehabilitation Council of India

  • Qualifications granted by any University or other institution in India that are included in the schedule shall be recognised qualifications for rehabilitation professionals/personnel.
  • Registration of Rehabilitation Professionals/Personnel in the Central Rehabilitation Register (CRR) of persons possessing the recognised qualifications. 
  • Prescribe the minimum standards of education required for granting recognised rehabilitation qualification by Universities/Institutions of India. 
  • Prescribe standards of professional conduct, etiquette and code of ethics for rehabilitation professional/personnel.
  • Assess & grant approval to institution/universities for training of professionals in the field of rehabilitation and to facilitate their recognition and its withdrawal by Government.
  • Appoint visitors to inspect any University or Institution where education for rehabilitation professional is given or attend any examination for the purpose of granting recognised rehabilitation qualifications. 

16 Categories of Rehabilitation Professionals/Personnel covered under RCI Act

  • Audiologists & Speech Therapists
  • Clinical Psychologists
  • Hearing & Ear Mould Technicians
  • Rehabilitation Engineers & Technicians
  • Special Teachers for Educating & Training Persons with Disabilities
  • Vocational counsellors, employment officers & placement officers dealing with Persons with Disabilities
  • Multipurpose Rehabilitation Therapists & Technicians
  • Speech Pathologists
  • Rehabilitation Psychologists
  • Rehabilitation Social Workers
  • Rehabilitation Practitioners in Mental Retardation
  • Orientation & Mobility Specialists
  • Community based Rehabilitation Professionals
  • Rehabilitation Counsellors/Administrators
  • Prosthetists & Orthotists
  • Rehabilitation Workshop Managers
  • Any other category of professionals included from time to time.

Aadhaar enabled Payment System (AePS)

Context: Incidents of bank frauds, without two factor authentication, have been reported across India, with cybercriminals using silicone thumbs to operate biometric ATMs and POS devices.

What is AePS?

  • AePS, or Aadhaar enabled Payment System, is a payment system that enables customers to carry out financial transactions through Aadhaar-based authentication at Point of Sale (PoS) devices and micro ATMs. 
  • Aadhaar is a unique identification number containing demographic and biometric data issued to Indian residents. 
  • With the help of biometric authentication methods like fingerprint or iris scans, customers can use their Aadhaar number to access various banking services, including cash withdrawals, balance inquiries, fund transfers, and other banking transactions. 
  • The National Payments Corporation of India (NPCI) introduced the AePS system to promote financial inclusion and make banking services accessible to all, particularly those living in remote and rural areas.

Benefits of AePS:

  • Financial inclusion: AePS enables individuals who do not have access to traditional banking services to carry out financial transactions. This promotes financial inclusion and ensures that everyone has access to basic banking services. 
  • Streamlining Government Entitlements: Aadhaar enabled Payment System facilitate disbursements of Government entitlements like NREGA, Social Security pension, Handicapped Old Age Pension etc. of any Central or State Government bodies using Aadhaar authentication.
  • Convenience: AePS allows users to carry out financial transactions using their Aadhaar number and biometric authentication. It eliminates the need for carrying cash or a physical debit card, making transactions more convenient and hassle-free. 
  • Security: Since transactions on AePS are authenticated using biometric authentication, it is more secure than traditional banking services that rely on passwords and PINs. It ensures that transactions are safe and secure. 
  • Low-cost transactions: AePS transactions are low-cost, making it an affordable option for individuals who want to carry out financial transactions. 
  • Easy to use: AePS is easy to use and does not require any special training or knowledge. Users can carry out transactions using their Aadhaar number and biometric authentication, which is a simple and straightforward process.
  • Inter-operability: Aadhaar enabled Payment System facilitates inter-operability across banks in a safe and secured manner.
  • Reaching the unreached: The model enable banks to extend financial services to the unreached clients beyond their branch network as beneficiaries of the Business Correspondents (BCs) are mostly located at unbanked and underbanked areas.

"Forest Fury: Nationwide Protests Ignite as Forest Rights Act Falters Across 12 States"

Context: More than 100 indigenous, forest-dwelling, and tribal delegates from 12 States across the nation spoke out against State governments and the Centre on Monday after a two-day convention on forest rights in Delhi, criticizing their failure to implement the Forest Rights Act of 2006.

About Forest Rights Act of 2006

Historical Background

• Tribals and other traditional forest dwellers have been residing in deep forests since eternity.

• Along with their stay, they have also come to develop unique mutualistic relationship with the forest in terms of their dependence on forest resources.

• As the British rule started hunting for resources, they constrained the entry of Indians, especially tribals into the forests. Hence, fury of acts and policies such as the Indian Forest Act of 1927 curtailed centuries‐old, customary‐use rights of local communities.

• This continued even after independence till much later until enactment of The Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006.

Forest Rights Act, 2006

  • The act recognizes and vest forest rights and occupation in Forest land in forest Dwelling Scheduled Tribes (FDST) and Other Traditional Forest Dwellers (OTFD)who have been residing in such forests for generations.
  • The act also establishes the responsibilities and authority for sustainable use, conservation of biodiversity and maintenance of ecological balance of FDST and OTFD.
  • It strengthens the conservation regime of the forests while ensuring livelihood and food security of the FDST and OTFD.
  • It seeks to rectify colonial injustice to the FDST and OTFD who are integral to the very survival and sustainability of the forest ecosystem.

The Act Identify Four Types of Rights

  • Title rights: It gives FDST and OTFD the right to ownership to land farmed by tribals or forest dwellers subject to a maximum of 4 hectares. Ownership is only for land that is being cultivated by the concerned family and no new lands will be granted.
  • Use rights: The rights of the dwellers extend to extracting Minor Forest Produce, grazing areas, to pastoralist routes, etc.
  • Relief and development rights: To rehabilitate in case of illegal eviction or forced displacement and to provide basic amenities, subject to restrictions for forest protection
  • Forest management rights: It includes the right to protect, regenerate or conserve or manage any community forest resource which they have been traditionally protecting and conserving for sustainable use.

Who can claim these Rights?

  • Members or community of the Scheduled Tribes who primarily reside in and who depend on the forests or forest lands for bona fide livelihood needs.
  •  It can also be claimed by any member or community who has for at least three generations (75 years) prior to the 13th day of December 2005 primarily resided in forests land for bona fide livelihood needs.
  • Gram Sabha is the authority to initiate the process for determining the nature and extent of Individual Forest Rights (IFR) or Community Forest Rights (CFR) or both that may be given to FDST and OTFD.

Importance

  • Recognized and provided the rights of Tribals and OTFD over forest resources.
  • The Act has also helped in the reduction of Naxal problems. Because Land (Jameen) has been one of the three demands of this movement.
  • Recognizing the community rights over forest resources paves the way for management of forest by the dwellers.

Challenges

  • Administrative Apathy:
    • The existing laws related to Environment and Wildlife protection are not compliant with FRA, 2006
    • Many incidents where Supreme Court had to intervene to enforce the provisions of the act.
  • Lack of Awareness:
    •  Specially among the tribals. This creates a demand reduction for the rights.
    • The forest bureaucracy has misinterpreted the FRA as an instrument to regularize encroachment instead of a welfare measure for tribals.
  • Reluctance of the forest bureaucracy to give up control
  • As more and more people legally settle on forested lands, the forest officials fear loss of control over these lands.

Institutional Roadblock

  • Rough maps of community and individual claims are prepared by Gram Sabha which at times often lack technical knowhow and suffers from educational incapacity.
  •  Intensive process of documenting communities’ claims under the FRA makes the process both cumbersome and harrowing for illiterate tribals

Way forward

  • Tribals have been living in harmony with forests and the biodiversity therein. The MoU recognizes important role tribal and forest dwellers can play in protection of forests and biodiversity.
  • Government views MFP rights to curb Naxalism since states most affected by Naxalism are also home to people dependent on forest produce.
  • Recognition of CFR rights would shift forest governance towards community conservation that is more food security and livelihood oriented.
  • Large-scale awareness campaigns are required at local level informing both tribal and lower-level officials.
  • Developing a detailed strategy of training and capacity building of people responsible for implementing the FRA, such as Panchayats, Gram Sabha, village level Forest Rights committee etc.
  • Relevant maps and documents should be made available to the Forest rights committee and claimants to simplify the task of the Gram Sabha in identifying and filing claims for individual and community rights.
  • Providing clarity on the time limit for settling claims the act does not specify any time limit for resolving claims. In most of the areas, both the officials and beneficiaries are unaware of this fact.
  • Centre should take more proactive role in pushing states to honour a law that could change the lives of millions.

RBI’s switch auction of G-secs stays undersubscribed on tight liquidity

Context: The Reserve Bank of India’s switch/conversion auction of government securities (G-secs) of Rs 20,000 crore remained undersubscribed. as liquidity remained tight and banks demanded higher yields.

Why this trend?

  • The overall liquidity (cash) in the system is stable at a lower level of just about Rs 50,000 crore. There is clearly a strain in the market in terms of liquidity not being evenly distributed and there are shortfalls in the liquidity of some banks. 
  • Switches and conversions have been used to defer payments due in the next couple of years, with the maturities being stretched. This reduces pressure on the market in terms of fresh borrowings being needed.
  • Liquidity (cash) demand of the banking sector was around 1.5 lakh crore, however, it was narrowed down to 80,000 crore. Lower cash with the banking sector left overnight call money rates being pushed above the benchmark level. This led to tightening of liquidity.

About Government Securities

A Government Security (G-Sec) is a tradable instrument issued by Central or State governments. It acknowledges the Government's debt obligation.

RBI As Debt Manager:

  • RBI Act mandates RBI to undertake receipts and payments of Central Government and carry out banking and management of public debt of Union.
  • State Government transactions are carried out by RBI in terms of an agreement entered by RBI and State Governments under RBI Act. As of now, such agreements exist between RBI and all State Governments except Sikkim.
  • Thus, RBI is banker and debt manager of government.
  • RBI issues both, treasury bills and bonds or dated securities on behalf of Central Government while the State Governments issue only bonds or dated securities, which are called the State Development Loans (SDLs).

Types Of Government Securities:

Short Term Government Securities(maturity less than 1 year)

  • Treasury bills: Money market instruments issued by GoI. Presently, issued in three tenors of 91 days, 182 days and 364 days.
  • Cash Management bills: Issued by GoI to meet temporary mismatches in cash flow of GoI. They are like T-bills but are issued for maturities less than 91 days.

Long Term Government Securities (Maturity more than 1 year):

  • Dated G-Secs: They are securities which carry a fixed or floating coupon (interest rate) which is paid on face value, on a half-yearly basis. Tenor ranges between 5 to 40 years.
  • Fixed Rate Bonds: These are bonds on which the coupon rate is fixed for the entire life (i.e., till maturity) of the bond. Most Government bonds in India are issued as fixed rate bonds.
  • Floating Rate Bonds: FRBs are securities which do not have a fixed coupon rate. Instead, it has a variable coupon rate which is re-set at pre-announced intervals (say, every six months or one year).

Auction Of Government Securities

G-Secs are issued through auctions conducted by RBI. Auctions are conducted on the electronic platform called the E-Kuber, the Core Banking Solution of RBI.

Members of e-KUBER: Commercial Banks, Scheduled Urban Cooperative Banks, Primary Dealers, Insurance Companies and Provident Funds, who maintain funds account (Current Account) and securities account (Subsidiary General Ledger account) with RBI.

All members of E-Kuber can place their bids in the auction through this electronic platform.

Types Of Auctions

  • Rate of interest (coupon rate) gets fixed through a market-based price discovery process.
  • Yield Based Auction: is generally conducted when a new G-Sec is issued. Investors bid in yield terms. Bids are arranged in ascending order and cut-off yield is arrived at the yield corresponding to the notified amount of the auction. The cut-off yield is then fixed as the coupon rate for the security. Successful bidders are those who have bid at or below the cut-off yield.
  • Price Based Auction: is conducted when G-Sec which has already been issued is being reissued. Bidders quote in terms of price per Rs 100 of face of the security. Bids are arranged in descending order of price offered and the successful bidders are those who have bid at or above the cut-off price.

Allocation Of Government Securities

Depending upon the method of allocation to successful bidders, auction may be conducted on Uniform Price basis or Multiple Price basis:

Uniform Price Method: All the successful bidders are required to pay for the allotted quantity of securities at the same rate, i.e., at the auction cut-off rate, irrespective of the rate quoted by them.

Multiple Price Method: Successful bidders are required to pay for the allotted quantity of securities at the respective price/yield at which they have bid.

Types Of Bidding

Competitive Bidding: In a competitive bidding, an investor bids at a specific price/yield and is allotted securities if the price/yield quoted is within the cut-off price/yield. Competitive bids are made by well-informed institutional investors such as banks, financial institutions, primary dealers, mutual funds and insurance companies. Multiple bidding is also allowed, i.e., an investor may put in multiple bids at various prices/yield levels.

Non-Competitive Bidding: To encourage wider participation and retail holding of Government

securities, retail investors are allowed participation on ‘non-competitive’ basis in select auctions of dated G-Secs and Treasury bills (5% of notified amount). Retail investor is any person including individuals, firms, companies, corporate bodies, institutions, provident funds, trusts and any other entity as prescribed by RBI.

RBI’s Retail Direct Scheme:

  • It is a comprehensive scheme which provides a one-stop solution to facilitate investment in Government Securities by individual & retail investors through an online portal. It aims to provide a safe, direct and secured platform to investors.
  • Under this scheme, retail individual investors will be able to open a Gilt Securities Account - Retail Direct Gilt (RDG) Account with RBI, using an online portal (rbiretaildirect.org.in).

Using the Retail Direct Platform, individual investors can participate in 

  • T-Bills
  • Dated G-Sec
  • State Development Loans (SDLs)
  • Sovereign Gold Bonds (SGB)

Investments can be made using following routes:

  • Primary issuance of government securities: Investors can place bid as per the non-competitive scheme for participation in primary auction of government securities and procedural guidelines for sovereign gold bond issuance.
  • Secondary market: Investors can buy and sell government securities on NDS-OM.
  • Using the RDG account, individuals can buy Government Securities in primary market (auctions) and buy/sell in secondary market.

Flow Battery Technology

Context: Researchers at IIT-Madras have developed an improved flow battery technology using a new type of organic electrolyte, pyrylium.

About Flow Batteries

  • Flow batteries are a type of rechargeable electrochemical batteries in which electrolyte flows through one or more electrochemical cells from one or more tanks. 
  • Simply speaking, energy is stored in two liquid electrolytes in separate tanks in flow batteries.
  • Mechanism: When we charge, the energy supplied urges electrons from the electron poor side to move to the electron rich side, creating a potential difference. During discharge, the reverse happens i.e., electrons flow from the electron rich side to the electron poor side. 
  • Conversion of energy from chemical to electrical energy happens in a cell, which is split into two-halves by a membrane. 
  • Electrolytes used: 
    • Vanadium is used as an electrolyte as it is capable of existing in four ionic species – with two, three, four or five (positively charged) protons.
    • Zinc-bromine (ZNBR): they use zinc and bromine ions to store electrical energy.
    • Iron-Chromium electrolytes
    • Proton exchange membrane (PEM): Use a proton-conducting membrane to separate positive cathode and negative anode electrodes. 
    • Organic electrolytes
image 263

Advantages of flow batteries

  • Long-lasting: Do not show performance degradation for 25-30 years. 
  • Modular & scalable: Capable of being sized according to energy storage needs with limited investment. Energy storage capacity can be increased by simply raising the volume of electrolyte tanks. Also, if we want to store more power, one can just add more cells in the cell stack. 
  • Low cost: Battery can be constructed using low cost & readily available materials such as thermoplastics and carbon-based materials. 
  • Suitable for grid-scale storage: Flow batteries can come handy in large storage applications, especially in maintaining grid stability and can come handy in increasing renewable energy penetration. 
  • Slow discharge: Flow batteries can store power for long durations. This is significant for storing seasonal renewable energy such as wind. 
  • Safety: Low flammability and low environmental impact.
  • Robust: Overcharging & fully discharging does not usually cause permanent damage to the electrode or electrolytes.
  • Electrolytes can be used as a heat management strategy for the battery which reduces the need for complex heating or cooling of battery system. 
  • Full recycling of electrolytes.

Challenges associated with flow batteries

  1. High cost of vanadium
  2. Low-energy density
  3. Low charge and discharge rates
  4. Lower energy efficiency
  5. Cross-over: This is a phenomenon when a positive electrolyte travels through the membrane separator and travels into the negative electrolyte. This leads to automatic discharge. 

Improved Flow Battery Technology Developed by IIT-Madras

  • Researchers at Indian Institute of Technology Madras have developed a ‘non-aqueous all-organic redox flow battery (NORFB)’ which leads to improved performance by flow batteries.
  • Conventional flow batteries employ aqueous (water-based) electrolytes like hydrochloric acid, sulphuric acid and alkali metal hydroxides.
  • Water based electrolytes leads to following issues:
    • Water interferes with undergoing electrolysis reducing operating voltage limit and energy density (amount of energy per unit volume or gram).
    • Water based electrolytes corrode battery components.
  • Pyrylium electrolytes: To address the situation scientists have been looking for non-aqueous and organic electrolytes. In this respect, researchers at IIT-Madras have developed a new-type of electrolyte using ‘pyrylium salts’ (a class of organic compounds). Pyrylium allows high-voltage operations allowing more flow batteries to store more energy and more current density. 

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