Context: The Payments Council of India (PCI), an industry body representing payment fintechs in the country, has requested finance minister to restore Merchant Discount Rate (MDR) for RuPay debit cards, as payment aggregator fintechs continue to lose on revenue lines for processing payments through the card infrastructure.
Merchant Discount Rate:
MDR (Merchant Discount Rate) refers to a fee that a merchant is charged by their issuing bank for accepting payments from their customers via credit and debit cards. It is also known as Transaction Discount Rate (TDR). While the card-issuing bank gets a share of it, the remaining amount is distributed between the payment network and point-of-sale terminal providers.
Push for Digitalisation:
The Government had mandated that large businesses (With turnover greater than ₹50 crore) provide customers with low-cost digital modes of payment and had asked banks to levy zero charges on the same.
The finance minister gave this initiative a further push by mandating that no MDR charges will be applicable on digital transactions via the Rupay and UPI platforms.
Concerns of Fintechs:
Payment aggregator fintechs are claiming that a loss of Rs 5,500 crore from no revenue being earned on UPI and RuPay debit card transactions. To compensate for this, the body has sought an incentive of Rs 4,000 crore in its representations to the ministry.
Zero MDR is also seen as a hindrance in attracting more players to adopt these payment modes and invest more in the development of the tech infrastructure to handle the huge volumes of transactions.
Context: While the IMD has predicted that the monsoon will be delayed this year, that’s not a cause for concern. Regional variations in rainfall, extreme rainfall events, and the developing El Nino are bigger worries.
What is onset of monsoon?
The monsoon season in India typically lasts from June to September, although its timing and intensity can vary across different regions.
The monsoon in India is primarily influenced by the seasonal reversal of winds, known as the Indian Ocean Dipole (IOD), and the movement of the Inter-Tropical Convergence Zone (ITCZ).
Pre-monsoon period (March to May): During this time, temperatures rise across the country due to the increasing solar radiation. As summer approaches, the landmass of the Indian subcontinent heats up faster than the surrounding oceans, causing a low-pressure area to develop over the region.
Arrival of the southwest monsoon (end of May to mid-June): The southwest monsoon is responsible for the majority of the rainfall in India. It begins with the onset of the monsoon over the Andaman Sea and the Bay of Bengal. Moisture-laden winds from the Indian Ocean are drawn towards the low-pressure area over the Indian subcontinent, creating a monsoon trough.
Factors affecting onset of monsoon:
Intense heating of the Indian landmass and formation of intense low pressure.
Deflection of SE trades after crossing the equator towards Indian west coast.
Advancement of the monsoon (June to July): The monsoon winds gradually advance across the country, starting from the southernmost state of Kerala and progressing northwards. This northward progression is known as the "monsoon onset line" and is closely monitored by meteorological departments.
Onset over different regions: The onset of the monsoon occurs at different times across various regions of India. The western coast and northeastern states receive the monsoon rains first, followed by the central and northern parts of the country. The Himalayan region experiences the monsoon last.
Monsoon progression and rainfall: Once the monsoon sets in, it brings heavy rainfall to different parts of India. The amount and distribution of rainfall vary from region to region. The western coast and north eastern states generally receive more rainfall compared to the arid regions in the northwest.
What is Indian ocean dipole?
IOD measures differences in sea surface temperatures between the western and eastern parts of the Indian Ocean. It is basically like the El Nino weather system that develops in the Pacific Ocean. It is characterized by an irregular oscillation of sea-surface temperatures in the eastern and western Indian Ocean
Impact on weather patterns: IOD alters the wind, temperature, and rainfall patterns in the Indian Ocean region.
Positive IOD event is known to bring floods to eastern Africa and droughts and bushfires to eastern Asia and Australia. Ex. 2020 Australian Bushfires.
Positive IOD is known to increase the intensity of Monsoon in the Subcontinent and leads to above normal rainfall. A simultaneous occurrence of Positive IOD and El Nino balances the negative impact of El Nino on the Indian Monsoon rainfall. Ex. above normal rainfall in India in 2019.
In contrast, Negative IOD coupled with El - Nino leads to poor Monsoon rainfall. Ex. Deficient rainfall in 1992.
Context: Recently, the Central Drugs Standard Control Organisation (CDSCO) put out a list of over 50 medicines that were either found to be spurious or ‘not of standard quality’, raising a furore.
What is CDSCO
India takes pride in its pharmaceutical industry, being the largest global producer of generic medicines that benefit the global poor.
However, the industry has faced challenges, including struggles to achieve scale and defamatory claims about the ineffectiveness and harm caused by Indian drugs.
Quality concerns persist, with numerous drugs failing to meet standards, leading to substandard drugs in routine use and adverse events.
Global regulators have raised issues with compliance, potentially damaging India's reputation. Recommendations include amending regulations, centralizing the drug regulatory system, enhancing transparency, and focusing on producing quality generics and innovative drugs.
About Central Drugs Standard Control Organisation (CDSCO)
It functions as India's national regulatory body overseeing cosmetics, pharmaceuticals, and medical devices.
The CDSCO is organized with the Drug Controller General of India (DCGI) overseeing pharmaceuticals and medical devices.
It is assigned duties under Drugs and Cosmetics Act, 1940.
The DCGI is situated within the Ministry of Health and Family Welfare and receives guidance from the Drug Technical Advisory Board (DTAB) and the Drug Consultative Committee (DCC).
The CDSCO operates through zonal offices that conduct inspections prior to licensing, post-licensing inspections, post-market surveillance, and, if necessary, initiates drug recalls.
Context: The Reserve Bank of India has directed the banks and other financial institutions to move away from the LIBOR (London Interbank Offered Rate) and move to any Alternative Reference Rates (ARR).
What is LIBOR?
LIBOR stands for the London Interbank Offered Rate. It is a benchmark interest rate that indicates the average rate at which major banks in London are willing to borrow from each other in the interbank market. LIBOR serves as a reference rate for a wide range of financial products and transactions, including loans, derivatives, and other financial contracts.
The British Bankers' Association (BBA) used to administer LIBOR until 2014, after which the Intercontinental Exchange Benchmark Administration (ICE Benchmark Administration) took over the responsibility.
LIBOR is calculated for various currencies and different borrowing periods, ranging from overnight to one year.
The calculation of LIBOR involves a panel of major banks submitting their borrowing rates, which are then used to determine an average rate. These rates are supposed to reflect the rates at which banks can borrow funds in the London wholesale money market.
How Is Libor Calculated?
Each day, 18 international banks submittheir ideas of the rates they think they would pay if they had to borrow money from another bank on the interbank lending market in London.
To safeguard against extreme highs or lows, the Intercontinental Exchange (ICE) Benchmark Administration strips out the four highest submissionsand the four lowest submissions before calculating an average.
It’s important to note that Libor isn’t set on what banks actually pay to borrow funds from each other. Instead, it’s based on their submissions related to what they think they would pay. As a result, it’s possible for banks to submit lower rates and manipulate Libor fairly easily.
Libor Scandals and the 2008 Financial Crisis
During the crisis, banks manipulated the LIBOR rates for their own benefit. They understated or manipulated their reported rates to create an illusion of financial health and to appear more creditworthy than they actually were.
By manipulating LIBOR rates, banks were able to lower their borrowing costsand increase their profits. This also gave them a false sense of security and credibility in the eyes of investors and counterparties.
The manipulation of LIBOR distorted the true pricing of financial products, leading to mispricing and increased risk in the global financial system.
Many financial institutions around the world relied on LIBOR as a benchmark for pricing and valuing their financial products. The manipulation of LIBOR undermined the integrity of these markets and eroded trust among market participants.
The impact of the LIBOR manipulation was far-reaching. It affected trillions of dollars' worth of financial contracts globally, including loans, mortgages, and derivatives. This, in turn, had a significant impact on individuals, businesses, and the overall economy.
The revelation of the LIBOR manipulation sparked a wave of investigations, lawsuits, and regulatory actions against banks involved in the scandal. Several major financial institutions faced substantial fines and penalties for their involvement.
The 2008 financial crisis exposed the vulnerabilities and weaknesses in the LIBOR benchmark system. It highlighted the need for reform and the development of alternative, more robust benchmark rates to ensure the integrity and stability of financial markets.
In response to the crisis, efforts were made to transition away from LIBOR as a benchmark rate. Various alternative reference rates, such as the Secured Overnight Financing Rate (SOFR) in the United States, were introduced to replace LIBOR and mitigate the risk of manipulation.
The RBI has directed all banks in India to end all contracts with LIBOR by 31 Dec and use the Mumbai Interbank Forward Offer rate (MIFOR).
What is MIFOR?
MIFOR stands for Mumbai Interbank Forward Offer Rate. It is a benchmark interest rate used in India to determine the pricing of various financial instruments, particularly forward rate agreements (FRAs) and interest rate swaps (IRS).
MIFOR is derived from a combination of the Mumbai Interbank Offered Rate (MIBOR) and the corresponding foreign currency benchmark rate. MIBOR is the interest rate at which banks in Mumbai, India, lend to one another in the interbank market.
The foreign currency benchmark rate used in the calculation of MIFOR depends on the currency involved in the transaction.
MIFOR is commonly used in India for hedging and pricing purposes in the derivatives market. It reflects the market's expectations of future interest rates in India and provides a reference point for interest rate-related transactions.
It's worth noting that the information provided is accurate up until my last knowledge update in September 2021. There might have been updates or changes in the financial landscape since then, so it's always a good idea to consult up-to-date sources and experts for the most recent information.
Context: The Prime Minister of India made reference to the Uttaramerur inscription located in Kanchipuram, Tamil Nadu during a discussion on India’s democratic history.
Uttaramerur
Situated in present-day Kanchipuram district, southeast of Chennai, Tamil Nadu. It was established during the reign of Nandivarman II, a Pallava king who ruled around 750 A.D.
Over the years, Uttaramerur was successively governed by the Pallavas, Cholas, Pandyas, Sambuvarayars, Vijayanagara Rayas, and Nayaks.
Historical temples: The village boasts three significant temples: the Sundara Varadaraja Perumal temple, the Subramanya temple, and the Kailasanatha temple.
Significance of Uttaramerur Inscription (920 A.D.)
Uttaramerur contains multiple inscriptions, with the most important one dating back to the rule of Parantaka I (907-953 AD).
This particular inscription on the walls of the village assembly (mandapa), provides comprehensive information about the functioning of the elected village assembly.
According to scholars, village assemblies might have existed before the time of Parantaka Chola, but it was during his rule that the village administration underwent significant refinement and became a well-operating system through the implementation of elections.
Local Elections
A comprehensive account of the operations of the Sabha (village assembly) is provided in the inscription The Sabha consisted exclusively of brahmans and comprised specialized committees responsible for various tasks. It also outlines the process of selecting members, qualifications, responsibilities and basis of disqualifications.
Constituting Sabha: There would be 30 wards, and individuals residing in these wards would gather to choose a representative for the village assembly.
Qualifications
Age group: Male, above 35 but below 75
Possession of Land and a house
Knowledge of mantras and Brahmanas from the Vedic corpus.
Exception: If the person had learned at least one Veda and four Bhashyas, exception was made regarding land ownership.
Disqualifications
Not submitting accounts while previously serving in a committee,
Committing any of the first four of the five 'great sins' (killing a brahman, drinking alcohol, theft, and adultery), associating with outcastes, and consuming 'forbidden' dishes.
Election Process
The entire selection process, under the guidance of priests was conducted through an elaborated lottery draw in the inner hall of the assembly building (mandapa).
The names of qualified candidates from each ward were written on Palm leaf tickets and placed in a pot (Kudavolai).
The oldest member of the assembly assigned a boy to randomly select a slip.
Responsibilities:
There were several important committees within the Sabha, each with its specific functions, which included:
Annual committee (an executive committee that required prior experience and knowledge)
Committee for supervision of justice (overseeing appointments and addressing wrongdoings)
Gold committee (responsible for the village temple's gold)
The assignments of the committees lasted for 360 days, after which the members retired.
It was important for the member to maintain accurate accounts, as any discrepancies could disqualify Sabha members.
Right to recall:
The villagers had the right to recall elected representatives who failed in their duties.
The committee for Supervision of Justice was responsible for this duty and with the assistance of an arbitrator, it conducted another selection following the prescribed process.
Imperial Cholas (c. 850 – 1200 CE)
According to the records, after the Sangam age, the Cholas remained as the subordinates of the Pallavas in the Kaveri region.
Vijayalaya (850-871 CE), conquered the Kaveri delta from the Muttariyar Dynasty. He founded the city of Thanjavur and established the Kingdom.
The copper plate inscriptions of Vijayalaya’s successors trace the Cholas’ lineage back to Karikala (most renowned Chola ruler during the Sangam age).
Successors of Vijayalaya
Parantaka Chola was instrumental in territorial expansion of the kingdom and also is credited with strengthening the governance of the Chola empire.
As dominant kingdom:
Rajaraja I (985–1014) (credited for Brihadeeswara temple in Thanjavur) and his son Rajendra I (1012–1044), conducted successful naval expeditions reaching Sri Vijaya (in maritime Southeast Asia).
They solidified the achievements of their predecessors and established Chola dominance throughout peninsular India.
Chola Administration
Monarchy: The governance during that period was led by a hereditary monarchy.
Addressed with titles: Peruman or Perumagan (great man), Chakkaravarti (emperor) and Tiribhuvana Chakkaravarti (emperor of three worlds).
Legitimacy: The kings established their legitimacy by asserting that they were comrades of the gods (thambiran thozhar).
Patronised Brahmins: The rulers appointed Brahmins as spiritual mentors or rajagurus. Patronizing Brahmins was seen as a means to enhance their prestige and legitimacy.
Land Grants: As a result, the Chola kings granted vast land estates to Brahmins known as brahmadeyams and chaturvedimangalams.
Provinces: The Chola state had been experiencing a continuous expansion of its territories since the reign of Vijayalaya.
These regions were under the rule of local chiefs commonly referred to as Feudatories.
Rajaraja I undertook the integration of these territories and appointed Viceroys to govern these regions.
Examples: Chola-Lankeswara in Sri Lanka and Chola-Ganga in the Gangavadi region of southern Karnataka.
The End of Chola Rule
Weakened central authority:
From the ninth to the thirteenth centuries, the Chola dynasty held a position of paramount importance in South India.
By the end of the twelfth century, local chiefs began to rise in power.
Invasion:
The frequent invasions from the Pandyas eroded its once formidable strength.
In 1264, Sundara Pandyan I, the ruler of the Pandyan kingdom, sacked the Chola capital of Gangaikondacholapuram.
The Cholas lost Kanchipuram earlier to the Telugu Cholas and with the capture of Gangaikondacholapuram, the remaining Chola territories fell into the hands of the Pandyan king.
In 1279, Kulasekara Pandyan I defeated the last Chola king, Rajendra Chola III, establishing Pandyan rule.
Context: Despite best efforts, the Government's Open Network for Digital Commerce could go in vain if proper supply chain management is not being developed.
What is Open Network for Digital Commerce?
Open Network for Digital Commerce (ONDC) is an initiative aiming at promoting open networks for all aspects of exchange of goods and services over digital or electronic networks (like e-commerce).
Sponsored by DPIIT (the Department for Promotion of Industry and Internal Trade), the non-profit programme, will bring together all stakeholders – buyers, sellers, logistics players, and digital payment providers – on one platform for convenience and growth.
ONDC is to be based on open-sourced methodology, using open specifications and open network protocols independent of any specific platform.
ONDC are to be open protocols for all aspects in the entire chain of activities in exchange of goods and services, similar to hypertext transfer protocol for information exchange over internet, simple mail transfer protocol for exchange of emails and unified payments interface for payments.
These open protocols would be used for establishing public digital infrastructure in the form of open registries and open network gateways to enable exchange of information between providers and consumers.
Providers and consumers would be able to use any compatible application of their choice for exchange of information and carrying out transactions over ONDC.
Benefits:
The initiative will not only facilitate the rapid adoption of e-commerce but also boost and strengthen the growth of startups in India. By facilitating scalable and cost-effective e-commerce through the open protocol, ONDC will empower startups to grow collaboratively.
ONDC will take ecommerce penetration to 40-50% in the coming years, as opposed to the current 10% share within India’s overall retail market.
For businesses, this will help create a level playing field and further drive open commerce, similar to how the United Payments Interface (UPI) democratised the digital payments segment.
Buyers, too, will benefit from easy access to a massive merchant base, great pricing, faster delivery, and enhanced customer experience.
ONDC will keep referral commissions capped at 3-5% at a later stage (for now, it is free), a massive reduction in costs compared to what businesses have to pay now for selling their goods online. According to a Gofrugal estimate, this is 7 to 10 times less than the usual online-selling commission rate of 23% to 28% on the cart value.
Challenge to ONDC:
ONDC does not have the best of the supply chain management when compared to other ecommerce giants like Amazon or Flipkart.
It still depends upon the ability of the others to facilitate logistics and warehousing.
Number of participants is still very low (not very popular among people).
Context: The National Human Rights Commission (NHRC) has taken suo motu cognisance of a media report that cited a 250-300% increase in the circulation of child sexual abuse material (CSAM) on social media in India. The NHRC said the content is of foreign origin, and Indian investigation agencies have not come across any Indian-made child sexual abuse material so far.
Why are we covering it?
Because UPSC main syllabus has this line
Since NHRC is an important statutory body, we should cover it.
Also, it is always in news because of its functioning. More often than not we see it as an enervated organization unable to serve the primary objective: Protection of human Rights.
This can be substantiated by following instances:
In June 2016, the current chair of the NHRC and former chief justice of India, HL Dattu, described this institution over which he presided as “a toothless tiger.
In 2017, the Supreme Court of India seemed to support Justice Dattu’s remarks while dealing with the alleged extra-judicial killings of 1,528 persons in Manipur by police and armed forces.
So it behoves us to prepare the Issues and challenges plaguing NHRC (Mains perspective). As far as prelims perspectives is concerned, that is straight forward and you can find it in Prelims Pointer and/or PDF.
What is NHRC?
The National Human Rights Commission (NHRC) of India was established on 12 October, 1993. The statute under which it is established is the Protection of Human Rights Act (PHRA), 1993 as amended by the Protection of Human Rights (Amendment) Act, 2006.
It is in conformity with the Paris Principles, adopted at the first international workshop on national institutions for the promotion and protection of human rights held in Paris in October 1991, and endorsed by the General Assembly of the United Nations by its Regulations 48/134 of 20 December, 1993.
The NHRC is an embodiment of India’s concern for the promotion and protection of human rights.
Section 2(1)(d) of the PHRA defines Human Rights as the rights relating to life, liberty, equality and dignity of the individual guaranteed by the Constitution or embodied in the International Covenants and enforceable by courts in India.
Composition Of The Commission
The Commission consists of a Chairperson, five full-time Members and seven deemed Members. The statute lays down qualifications for the appointment of the Chairperson and Members of the Commission.
There are four other members. These are:
There should be one Member who is, or has been, a Judge of the Supreme Court.
There should be one Member who is, or has been, the Chief Justice of the High Court.
Two other members should be there who have the knowledge or practical experience in matters related to human rights.
The ex officio members of the Commission can be:
The Chairpersons of the National Commission for Minorities,
The Chairpersons of the National Commission for Women,
The Chairperson of the National Commission for Scheduled Castes, and
The Chairperson of the National Commission for Scheduled Tribe.
Appointment of the members
On the recommendation of a committee, the President of India appoints the chairperson and the members of the National Human Rights Commission. The committee consists of the following members:
Prime Minister of India [CHAIRPERSON]
Home Minister of India
Speaker of Lok Sabha Leader of Opposition [Lok Sabha]
Leader of Opposition [Rajya Sabha]
Deputy Chairperson of Rajya Sabha
The Commission shall, perform all or any of the following functions, namely:-
Inquire, on its own initiative or on a petition presented to it by a victim or any person on his behalf, into complaint of-
violation of human rights or abetment oR
negligence in the prevention of such violation, by a public servant;
intervene in any proceeding involving any allegation of violation of human rights pending before a court with the approval of such court;
visit, under intimation to the State Government, any jail or any other institution under the control of the State Government, where persons are detained or lodged for purposes of treatment, reformation or protection to study the living condition of the inmates and make recommendations thereon;
review the safeguards by or under the Constitution or any law for the time being in force for the protection of human rights and recommend measures for their effective implementation;
review the factors, including acts of terrorism that inhibit the enjoyment of human rights and recommend appropriate remedial measures;
study treaties and other international instruments on human rights and make recommendations for their effective implementation;
Issues and challenges of NHRC
Autonomy of the NHRC
The Commission is supposed to be completely independent in its functioning, even though the Protection of Human Rights Act, (PHRA), 1993 does not say so.
In fact, there are provisions in the Act which underscore the dependence of the Commission on the government.
For example:
Section 11 of the Act makes it dependent on the government for its manpower requirements.
Section 32 of the Act makees it financially dependent on the central government:
Central govt. shall pay to the Commission by way of grants such sums of money as it may consider fit.
Thus, in respect of the two most important requirements i.e. human resources and money, the Commission is not independent.
Even the limited finds are not being used for human rights related functions
Large chunks of the budget of commissions go in office expenses, leaving disproportionately small amounts for other crucial areas such as research and rights awareness programmes.
Lacks enforcing powers
NHRC does not have the backing of the Protection of Human Rights Act to penalise authorities which do not implement its orders hence maming it impossible for NHRC’s recommendations do not reach to the ground level as the
The Act does not categorically empower the NHRC to act when human rights violations through private parties take place.
Lacks specialized persons who have dealt in Human rights issues
The Act requires that three of the five members of a human rights commission must be former judges but does not specify whether these judges should have a proven record of human rights activism or expertise or qualifications in the area.
Regarding the other two members, the Act is vague, saying simply: “persons having knowledge and experience of human rights.
Bureaucratic style of functioning of govt staff :
On top of that, as human rights commissions primarily draw their staff from government departments – either on deputation or reemployment after retirement – the internal atmosphere is usually just like any other government office.
Strict hierarchies are maintained, which often makes it difficult for complainants to obtain documents or information about the status of their case.
As non-judicial member positions are increasingly being filled by ex-bureaucrats, credence is given to the contention that the NHRC is more an extension of the government, rather than an independent agency exercising oversight.
Delay in disposal of cases
Expectations from the commission was to keep a tight grip on its disposal, so that pendency was not allowed to increase.
Unfortunately, this did not happen and the number of cases pending with the Commission has been increasing sharply every year.
Under staffed:
Either the Commission needs to get its staff strength increased or change methods of disposal so that the backlog of accumulated undisposed cases does not become heavy.
Low level of awareness about the Human rights in populace
Among general populace
An awareness of rights is not institutionalized in our curriculum.
It is limited both in geography and knowledge as far as the public is concerned.
Among Lawenforcers (Primary violators)
Eighty per cent of the training of a policeman in India is devoted to regimentation and a very little time was left to develop forensic skills or human rights awareness.
Knowledge of the laws and one’s interpretation are limited to small groups of people who are educated and legally literate.
Delay in publication of reports:
Delay in publication of annual reports by two or three years has been a constant problem. Annual reports for calendar years should be put online as soon as possible and no later than March of the succeeding year.
The hard copy of the report should also be published at the same time.
Constrained against armed forces
Since a very large number of complaints of human rights violations are directed against the members of the “armed forces”, the Act obviously weakens the NHRC’s effectiveness in providing redress to the public in such cases.
All that the Commission, under Section 19 of the Act can do is to call for reports from the central government in such cases and then make recommendations to the government or not “proceed with the complaint” at all. Under the Act, the Commission has no power to enforce its decisions. The Act must be amended to make the Commission a strong, and vibrant institution, supporting democracy and good governance.
Preventing the NHRC from independently investigating complaints against the military and security forces not only compounds the problems but also furthers impunity.
So, NHRC has to develop a strong image as a protector of the poor, marginalised and vulnerable groups. But that will not be possible without substantial changes in the legal framework itself.
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.
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 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.
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.
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.
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
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
High cost of vanadium
Low-energy density
Low charge and discharge rates
Lower energy efficiency
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.
