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SECURE SYNOPSIS: 26 MARCH 2019

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SECURE SYNOPSIS: 26 MARCH 2019


NOTE: Please remember that following ‘answers’ are NOT ‘model answers’. They are NOT synopsis too if we go by definition of the term. What we are providing is content that both meets demand of the question and at the same time gives you extra points in the form of background information.


Topic: Effects of globalization on Indian society.

1) Critically examine how globalisation has affected urban  and rural society differently in India.(250 words)

Reference

Reference

Why this question:

The question is in the context of Effects of globalization on Indian society and more so specifically with respect to its effect on Urban and rural society.

 

Key demands of the question:

The answer must first elaborate on what is Globalization, what are the causes of it, its impact and implications on rural and urban India. Compare and contrast each of these implications and examine how they are different from each other.

Directive word

Critically ExamineWhen asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgement.

 

Structure of the answer:

 

Introduction

Briefly discuss the importance of globalization and its implications in general.

 

Body

The impact of globalization on Indian and rural life has a tremendous   influence which is both positive as well as negative. The Indian urban

and rural life is viewed as the two faces of the same coin. They are mutually interdependent and both have a greater impact of globalization. India is getting global recognition and slowly moving forward to become a major economic and political strength. Thus, the paper clearly elucidates that globalization is a complex phenomenon and its impact on rural and urban

life clearly. It has a very profound impact on both Indian rural and urban life. As a result globalization has shown remarkable growth in urbanization and rural development.

 

Conclusion

Conclude with a positive note that Globalization has proved to be an empowering entity in Indian scenario.

Introduction:

Globalization is an international platform for maintaining evenness in the living mode of the people all over the world. Globalization is the resultant of the interchange of worldly views, opinions and the various aspects of the culture everywhere around the world. The impact of globalization on Indian and rural life has a tremendous influence which is both positive as well as negative. The Indian urban and rural life is viewed as the two faces of the same coin. They are mutually interdependent and both have a greater impact of globalization.

Body:

Impact of globalization on Indian rural society

  • Positives:
    • Commercialization of agriculture: There is an increased trend of commercialization from sustenance farming. This has been successful only with farmers having large tracts of lands.
    • Expansion of agro-industries: Increased crop yield has led to development of agro-processing industries which help in adding value to the products and increasing their shelf life. E.g.; Tomato Ketchup, Potato chips etc.
    • Wider use of information, communication and technologies: Agricultural extension techniques like Kisan TV, sms about weather conditions has helped farmers plan better. Initiatives like e-Nam have helped farmers get better prices in certain areas.
    • Increased Mechanization, better inputs: Mechanization like use of tractors, harvesters, tillers has eased the job. High yield variety seeds, fertilizers have given better yield as seen during Green Revolution
    • Socio-economic development: With telemedicine and teleeducation, people are able to access the health and education facilities at the remotest areas. Adult literacy has helped in fighting for their rights.
    • MSMEs: There has been a rise of MSMEs with women entrepreneurs heading it.
  • Negatives:
    • Changes in Land-Use patterns
    • Internal labour migration: Labour migration  to  cities from  rural  areas  in  search  of  employment  was  a  common phenomenon.  This  was  for  various  reasons  especially  for luxurious  life,  handsome  salary  and  for  numerous  job opportunities
    • Increasing privatization of resources: Rural population is still    suffering    from    unemployment    as    rural    labour    is    mostly    uneducated and unskilled.  Machines and latest technologies   have   reduced   the   number   of manpower a lot
    • Loss of jobs and Displacement: due to mechanization, women are the worst sufferers. When big-ticket projects like Dams, Roads, and Mining come up, people are displaced making them internal refugees.
    • Increased inequality: Regional and sectional disparity due to only a few reaping the benefits.
    • No Behavioural changes: Open defecation still present, caste discriminations are still prevalent.

Impact of globalization on Indian urban society

Positives:

  • Increased Urbanization: It has been estimated that by 2050 more than 50% of India’s population will live in cities. The boom of services sector and city centric job creation has led to increasing rural to urban migration.
  • Increased job opportunities: due to inflow of MNCs, FDIs, people have a wide choice of job opportunities provided they have the requisite skills. Startups like Ola, Swiggy etc. have revolutionized the Gig-Economy. Development of Industries have also provided with jobs.
  • Higher Per capita income: employees are paid well albeit lesser than the global pay levels.
  • Enhanced lifestyle: due to higher PCI and wide array of facilities available from which the consumer can choose. It has raised the quality of life of many.
  • Better infrastructure: In terms of education, health, transport available to people. This has in turn enhanced the agglomeration of economies leading to industrial belts, IT parks, SEZ, CEZ etc.
  • Rapid Digitization: for faster and ease of connectivity, most of the services are digitized. This also increases the awareness of citizens in terms of rights, happenings around world etc. On the Governmental side, there is more accountability and transparency and faster delivery of services.

Negatives:

  • Family Structure: The increasing migration coupled with financial independence has led to the breaking of joint families into nuclear ones. The western influence of individualism has led to an aspirational generation of youth. Concepts of national identity, family, job and tradition are changing rapidly and significantly.
  • Marriage Values: Similarly, marriages have also lost their values. It is very much evident from the increasing number of divorce cases and the extra-marital affairs reported every now and then.
  • McDonaldization: A term denoting the increasing rationalization of the routine tasks of everyday life. It becomes manifested when a culture adopts the characteristics of a fast-food restaurant. McDonaldization is a reconceptualization of rationalization, or moving from traditional to rational modes of thought, and scientific management.
  • Walmartization: A term referring to profound transformations in regional and global economies through the sheer size, influence, and power of the big-box department store WalMart. It can be seen with the rise of big businesses which have nearly killed the small traditional businesses in our society. 
  • Rise in Lifestyle diseases: due to reduced physical activity, increased habits of liquor and smoking etc.
  • Urban Sprawl: Increasing slums, unplanned urbanizations are on the rise which is a ticking time-bomb.

Conclusion:

It is difficult to say that the impact of globalization has been totally positive or totally negative. It has been both. Each impact mentioned above can be seen as both positive as well as negative. However, it becomes a point of concern when, an overwhelming impact of globalization can be observed on the Indian rural and urban society.


Topic– Effects of globalization on Indian society

2) To what degree globalization has influenced the core of cultural diversity in India? Explain.(250 words)

 

Why this question:

The question is about recognizing the specific impacts that globalization has made over cultural diversity of India.

 

Demand of the question:

This question seeks to examine the effect of globalization on cultural diversity of India viz. linguistic diversity, communal diversity, Religious diversity, Racial diversity etc.

 

Directive word:

Explain – Clarify the topic by giving a detailed account as to how and why it occurred, or what is the  particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.

 

Structure of the answer:

 

Introduction

Start by explaining effects of globalization in general and discuss its influence and the extent in brief.

 

Body

One has to analyse both positives and negatives  of globalization :

  • Linguistic diversity: resulted in centralist language, which dominates regional dialects, and minority languages. E.g.: In urban areas, most of the families these days talk in English even at homes. But it has a positive dimension, where it had led to Indians excelling in the services sector of the economy.
  • Caste Diversity: has led to decreased emphasis on localized castes but the socio-economic disparities in societies continues to cause conflicts, which are dominated by caste hegemony.
  • Religious diversity: increased prosperity and materialistic pursuits have decreased the religion based conflicts but religion continues to dominate the social sphere mostly concerned with ethos and values. It also had led to questioning the age old exploitative traditions like Devadasi and Triple-talaq. Also though India was multi-religious but was dominated by Hindu’s with globalization it has led to be polarized by few religions. Also, exposed India to religious fundamentalism.
  • Racial diversity: Globalization to an extent has changed the racial demography to an extent with decreasing numbers of Mongoloid race. Migration from North East side of India has to an extent changed the demography of Indian races. The economic inequalities and slow movement towards mono-culture has led to increased attacks on racial minorities, E.g.: NE students attacked in New Delhi.

Influence

Negative influence:

  • Unmonitored access to Western culture – Misrepresentation, stereotyping and the risk of loss of cultural and intellectual property rights.
  • Increased consumerism and erosion of local cultural traits.
  • Under the influence of Western idea of individualism – more homogenization of values and beliefs. e.g.: Loss of local artifacts, promotion of western dressing, shift from local culinary habits etc.

Positive influence:

  • Technology has helped preserve some of the dying artifacts, document local languages and also exposed Indians to various global arts/movies etc.
  • It has minimized cultural barriers and promoted universal ethos (reducing partial mindset etc.), education etc.


Conclusion

Conclude that Globalization to an extent acted as a unifying force but monitored access would help India preserve its multi-lingual, multi-religious and multi-caste society.

Introduction:

Globalization is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture. This results into decrease in variation in cultural diversity and formation of a ‘Global village’ with identical features.

Body:

Globalisation has varying degree of influence on cultural diversity in India as following- 

  • Linguistic diversity:
    • The influence of transnational corporations has resulted in centralist language, which dominates regional dialects, and minority languages. E.g.: In urban areas, most of the families these days talk in English even at homes.
    • English as medium of mass communication has undermined the local languages.
    • The development of literature is also impacted by this.
    • Many tribal languages have been wiped out due to use of a common tongue.
    • But it has a positive dimension, where it had lead to Indians excelling in the services sector of the economy.
  • Caste Diversity:
    • The western Idea of civilization has impacted prospective toward Indian tradition and customs which are looked down as regressive.
    • It has led to decreased emphasis on localized castes in the urban areas.
    • People eat together, increased instances of inter-caste marriages are seen in the urban areas.
    • However, the socio-economic disparities in societies continue to cause conflicts, which are dominated by caste hegemony. Instances of honour killing, flogging of dalits are some of the examples which assert caste identity.
  • Religious diversity:
    • In a globalized world where increased prosperity and materialistic pursuits have decreased the religion based conflicts but religion continues to dominate the social sphere mostly concerned with ethos and values.
    • It also had led to questioning the age old exploitative traditions like Devadasi and Triple-talaq.
    • Although India was multi-religious but was dominated by Hindu’s with globalization it has led to be polarized by few religions.
    • India is also exposed to religious fundamentalism
  • Racial diversity:
    • Globalization to an extent has changed the racial demography to an extent with decreasing numbers of Mongoloid race.
    • Migration from North East side of India has to an extent changed the demography of Indian races.
    • The economic inequalities and slow movement towards mono-culture has led to increased attacks on racial minorities, e.g.: NE students attacked in New Delhi.
  • Ethnicity:
    • The globalization generalized the taste and preferences of people relating to food, Dance forms and Values.
    • This undermines the peculiar features of various ethnicities like cuisines.
    • Increased consumerism and availability of media has led to erosion of local cultural traits.
    • Under the influence of Western idea of individualism there has been more homogenization of values and beliefs. E.g.: Loss of local artefacts, promotion of western dressing, shift from local culinary habits etc.
    • At times, with the help of internet and social media, it has helped to mobilize people in the garb of protection of cultural identity. E.g. Jallikattu movement.
  • Art and handicrafts:
    • In the globalized and mechanized economy no art has remain local.
    • Countries like China is flooding Indian market with the products which were local to India like toys making.
    • This has impacted diversity in Art and handicraft as now we find same kind of product all over India.
    • Unmonitored access to Western culture has led to increasing Misrepresentation, stereotyping and the risk of loss of cultural and intellectual property rights.
    • Technology has helped preserve some of the dying artefacts, document local languages and also exposed Indians to various global arts/movies. Example: Flipkart is selling tribal artefacts, Channapatna wooden toys etc.

Conclusion:

India is a land of pluralism. The highly diverse nature of our culture is the uniting strength of India. Globalization to an extent acted as a unifying force but monitored access would help India preserve its multi-lingual, multi-religious and multi-caste society.


Topic: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections.

3) Critically examine the success of Pradhan mantri Ujjwala Yojana scheme?(250 words)

Livemint

Why this question:

The article analyses in detail the government of India’s flagship Pradhan Mantri Ujjwala Yojana (PMUY)scheme.

 

Key demand of the question:

The answer must discuss the salient features of the scheme very briefly and discuss the successes of the scheme over the past schemes for the same target population with same intent and bring out the challenges that the scheme is facing and suggest a way forward.

 

Directive word:

Critically ExamineWhen asked to ‘Examine’, we have to look into the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications. When ‘critically’ is suffixed or prefixed to a directive, one needs to look at the good and bad of the topic and give a fair judgement.

 

Structure of the answer

 

Introduction:

Introduce by highlighting the significance schemes to vulnerable sections of the society in the context of PMUY.

 

Body:

Answers must discuss the following aspects :

  • Discuss the key features of the scheme – replace unclean cooking fuels used in the most underprivileged households with clean and more efficient LPG (Liquefied Petroleum Gas), LPG connections with a support of Rs. 1,600 per connection. Target revised to 8 crore- to be achieved by 2019-20 etc.
  • Discuss the beneficiaries
  • Status of the scheme as of today, what are the challenges facing the scheme- Affordability and Inactive gas cylinders, Issues with LPG distribution, Safety Issues, Identification of Beneficiaries etc.

 

Conclusion –

Conclude by suggesting a way forward.

Introduction:

Pradhan Mantri Ujjwala Yojana (PMUY) is a scheme of the Ministry of Petroleum & Natural Gas for providing LPG connections to women from Below Poverty Line (BPL) households. India is home to more than 24 Crore households out of which about 10 Crore households are still deprived of LPG as cooking fuel and have to rely on firewood, coal, dung – cakes etc. as primary source of cooking.

 

The PMUY has helped the spread of LPG cylinders predominantly in the urban and semi-urban areas with the coverage mostly in middle class and affluent households. It aims to safeguard the health of women & children by providing them with a clean cooking fuel – LPG, so that they don’t have to compromise their health in smoky kitchens or wander in unsafe areas collecting firewood.

Body:

Achievements:

  • The oil ministry’s Petroleum Planning and Analysis Cell (PPAC) estimates that LPG coverage in India (the proportion of households with an LPG connection) has increased from 56% in 2015 to 90% in 2019. There is a significant increase in eastern states, with 48% of the beneficiaries being SC/STs.
  • The government reports show that around 80% of the beneficiaries have been refilling cylinders, with average per capita consumption being 3.28 cylinders.
  • PMUY has resulted in an additional employment of around 1 Lakh and provide business opportunity of at least Rs. 10,000 Crore in last 3 Years to the Indian Industry.
  • The scheme has also provided a boost to the ‘Make in India’ campaign as all the manufacturers of cylinders, gas stoves, regulators, and gas hose are domestic.
  • PMUY reduces these ill-effects by providing clean fuel and cutting out on drudgery. Increased use of cooking gas will shrink the incidence of tuberculosis in India, based on the statistics from the latest National Family Health Survey (NFHS-4) on TB prevalence.
  • PMUY has helped in reducing the drudgery for women. The time saved can be used in socio- economically productive activities like Self-Help Group activities.
  • The World Health Organisation hailed PMUY as decisive intervention by the government to facilitate the switch to clean household energy use, thereby addressing the problems associated with Indoor Household Pollution.

However, given the scale of the scheme there are some implementation shortcomings of the scheme

 

Cost issues:

  • Consumers were paying market price for refills till the loan repayment for stove and first refill was made. This led to some consumers not going in for such refills.
  • Economic Burden: The increased monthly expenditure has shied many consumers away from LPG and lured them back to firewood and cow-dung cakes.
  • The CEEW study across Uttar Pradesh, Madhya Pradesh, Jharkhand, Bihar, West Bengal and Odisha found people were unwilling to pay upfront Rs.900-1,000 for a 14 kg refill.
  • A CRISIL Study shows that of those surveyed, 86% said they had not shifted from biomass to LPG because the price of installing a connection was too high. Almost the same number – 83% – said the price of refills was too high.

Administrative issues:

  • The government claims that around 80% of the beneficiaries have been refilling cylinders, with average per capita consumption being 3.28 cylinders. But there are implementation issues with the scheme in Madhya Pradesh, for instance.
  • Aadhar seeding also faces issues caused by data discrepancies, especially where the spelling of names is concerned as a result of which applicants can find themselves unable to register for the scheme.

Logistic issues:

  • Lack of LPG cylinder bottling plants near rural areas and connectivity issues especially in the tribal areas.
  • Last-mile connectivity and delivery still poses a great challenge.

Safety and Behavioural issues:

  • Safety has been another concern about distribution of LPG connection, especially to BPL families. Lack of awareness and safety amenities in beneficiary households have increased the likelihood of accidents.
  • Cow-dung cakes lying around the house all the time. Hence, LPG cylinders are used on special occasions or during some kind of emergency or when it’s entirely too hot to burn wood.
  • The CRISIL report also noted that 37% of households in rural areas procure cooking fuel or free.
  • Agency: Most rural women do not have a say in determining when a refill is ordered, even though the connection is in their name.

 

Way Forward:

  • Increase Affordability: A case in point is state-run fuel retailers introducing a 5kg refill option to make purchases affordable.
  • Increase Accessibility: Gas Agencies should be set up within 10km radius, especially in the rural and remote areas to increase accessibility.
  • Increase Availability: Alternatives like Gas-grid and piped connections in cities and areas near the bottling plants can free up the cylinders for other areas.
  • Promote ‘Give it up’: The initiative of the government to persuade the well-off to give up the LPG subsidies has added to the corpus of PMUY. Similar initiatives can be promoted.
  • Encourage Private Players to set up LPG franchises at rural areas.
  • Sensitization and Education of safe use of LPG though LPG Panchayats, NGO’s etc.

 

Conclusion:

        PMUY is a novel scheme having twin benefits of women empowerment as well as environmental conservation. Ironing out the implementation issues can reap the envisioned benefits and lead to a sustainable future in energy consumption.


Topic :  Structure, organization and functioning of the Executive and the Judiciary; Ministries and Departments of the Government; pressure groups and formal/informal associations and their role in the Polity.

4) Historically, startups, whether in business or in politics, have a very high mortality rate. In this context discuss the factors that make a political startup survive and thrive with suitable examples.(250 words)

Hindustantimes

Why this question:

The article discusses in detail the coming of new political startups; political parties and their survival.

 

Key demand of the question:

The answer must explain in detail the coming of any new political party , the process of genesis, and the chances of mortality of the same. The answer must critically analyse the challenges that are faced by the new political start ups.

 

Directive word:

DiscussThis is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

 

Structure of the answer:

Introduction:

Begin with brief introductory lines on political start ups.

Body:

Discuss some facts associated that justify the quick genesis and quick mortality of the political parties .

There are more the 1800 political parties that registered with the Election Commission of India. However, the numbers belie the challenges involved in building and sustaining a party in the country.

Discuss what are the challenges – leading to early demise of the political parties.

 

Conclusion:

Conclude with importance of robust methods to channelize the starting of the parties.

Introduction:

Political startups refer to the new political parties floated by candidates due to break-up from the older party or based on new ideology at national or state level. At last count, there were more the 1800 political parties registered with the Election Commission of India. However, the numbers belie the challenges involved in building and sustaining a party in the country.

Body:

The factors that make a political startup survive and thrive are:

  • Organized structure: Just being helmed by a charismatic and popular figure does not guarantee the well being of a party. Acquiring electoral clout requires an organisational structure as well as a dedicated band of activists. E.g. the case of Makkal Needhi Maiyam (MNM), a party formed a year ago by the film star, Kamal Haasan, in Tamil Nadu.
  • Ground level booth management: A key reason attributed to the remarkable performance of the BJP in 2014 was its ground level booth management and deployment of ideologically committed foot soldiers. AAP’s success in Delhi Assembly elections in 2017 is also a good illustration. Grassroots support is crucial to political parties’ ability to win elections and in countering the influence of money in politics.
  • Well-known candidates: Parties devoid of a robust organisational structure and well known candidates, will be forced to fall back on one person’s appeal and charisma. E.g. MNM.
  • Intra-party democracy: The extent to which the party can survive is thus conditional on its success in making the representative regime not only operative but legitimate. Internal divisions over hot-button issues can be disastrous. E.g. AAP and Swaraj India. Political parties should make gender equality a priority and should address the corrupting influence of money in politics.
  • Diversity of issues: Campaigning on a single issue — especially one rooted in demagoguery — can put you on the map. It can rarely help the party survive as it has a diversity of audience to cater to. Parties’ adaptability to new challenges and restrictions is also imperative.
  • Fresh and Innovative solutions: Citizens are engaging with governments in new ways, so traditional party systems may become relics of the past; The increase in radical parties on the left and right means it is important for those in the center to better clarify and articulate their positions;

Conclusion:

Only a clear ideology, a committed cadre, and visionary leadership will allow a political party to thrive.


Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.

6) Discuss the salient features of Indian Accounting Standards why is it significant? Elaborate on the need to have  an independent Accounting Standards. (250 words)

The hindu

Why this question:

The question is in the context of recent  move taken by RBI. The Reserve Bank of India (RBI) has deferred the implementation of new accounting rules, Indian Accounting Standards (Ind AS) for banks till further notice. This is the second extension provided by it. Earlier in April 2018, RBI had postponed the implementation of Ind AS by the banks by one year.

 

Key demand of the question:

The answer must explain with the salient features of Indian Accounting Standards (Ind AS) and elaborate on its significance and explain why it is necessary for us to have such a system in place.

 

Directive word:

DiscussThis is an all-encompassing directive – you have to debate on paper by going through the details of the issues concerned by examining each one of them. You have to give reasons for both for and against arguments.

 

Structure of the answer:

 

Introduction:

Briefly narrate the context/backdrop or simple define what are Indian Accounting standards.

Body:

Explain the following –

  • What is it?- compromise formula that tries to harmonize Indian accounting rules with the International financial reporting standards.
  • Briefly discuss its salient features; structure ,current status, Legislative change required to implement IndAS etc.
  • Significance
  • Practical challenges to it from – revenue recognition, financial instruments and fixed asset accounting etc.

Conclusion:

Conclude with its importance.

Introduction:

Indian Accounting Standards or Ind AS governs the accounting and recording of financial transactions as well as the presentation of statements such as profit and loss account and balance sheet of a company. Ind AS has been evolved as a compromise formula that tries to harmonise Indian accounting rules with the IFRS.

The Reserve Bank of India (RBI) has deferred the implementation of new accounting rules, Indian Accounting Standards (Ind AS) for banks till further notice. This is the second extension provided by the RBI. Earlier in April 2018, RBI had postponed the implementation of Ind AS by the banks by one year.

Body:

Significance of Ind AS:

  • Ind AS will not just change the way companies present their numbers, but may also bump up or knock down the profits/losses of firms.
  • Example: Under the existing rules, incentives, discounts or rebates given to customers by a firm can be shown as part of advertising, sales promotion or marketing expenses, which figure in the costs. But under Ind AS, these will have to be deducted from sales (revenues). Excise duties which are currently netted off from revenues to show ‘net sales’, will have to be shunted under ‘expenses’ under Ind AS.
  • Intangible assets such as goodwill had to be amortised, or written off as expenses over a period of time until now. Ind AS treats such items as having an indefinite life and hence they need not be amortised. This can lift the profits of firms which carry sizeable goodwill on their books.
  • Ind AS advocates the ‘fair value’ method of accounting. For example, currently, investments by a company in government securities or mutual funds are shown at the lower of cost and fair value (market value). Under Ind AS, these will have to necessarily be captured at fair value. For firms which have legacy or undervalued investments, this revaluation can expand the balance sheet size.
  • The new Ind AS also promises clearer disclosures to investors in certain cases. So far companies reported their segment-wise performance based on a broad product/service grouping or even geographical segments (within India, Outside India).
  • But Ind AS requires that segments reported to investors are the same as the firm uses for the purpose of assessing performance and allocating resources.
  • Given that Ind AS is a principle based standard, the Regulators could provide simplified guidelines for ease of implementation and bringing consistency in implementation amongst banks.
  • Under the proposed norms, financial institutions like banks will have to calculate expected credit losses (ECL) on their loans during each reporting period and make necessary adjustments to their profit-and-loss account even before a borrower may default on a certain loan.
  • This is in contrast to the present accounting norms wherein banks incur credit losses in their books only after outstanding loans have been in a state of default over a certain number of days as stated in the rules laid down by the RBI.

Need for Ind AS:

  • For long, there has been a heated debate about Indian companies moving to the globally accepted International Financial Reporting Standards (IFRS) for their accounts.
  • But firms have resisted this shift, stating that this will lead too many changes in the capture and reporting of their numbers.
  • Ind AS has been evolved as a compromise formula that tries to harmonize Indian accounting rules with the IFRS

Challenges posed due to shift to Ind AS:

  • Adopting the Accounting Norms results in addition to pile up of Bad Loans. For example, the impact of expected credit losses may be spread systematically over a five-year period, thereby allowing time for banks to manage the increase in capital requirements.
  • According to estimates made by India Ratings & Research, public sector banks would have to make additional provision of over a trillion rupees means of over Rs. 1 lakh-Cr if the norms are adopted right away.
  • To adjust to the new norms, banks will have to improve their ability to forecast future credit losses with precision. Until this happens, bank earnings could experience volatility.
  • The Central government, which has been trying to bail out public sector banks without carrying out the structural reforms required to clean up balance sheets, might also prefer to delay the enactment of the legislation.
  • For the new norms will cause more outstanding loans to be added to the huge existing pile of bad loans and cause further headaches to the government.

Conclusion:

In recent times, the banking regulator had raised concerns over ‘divergence’ in asset classification and provisioning, which means the reported numbers of a bank were lower than what RBI’s inspection report had found. The implementation of Ind AS would have taken care of such issues.

In the long run, moving to internationally acceptable accounting standards will help the Indian banking system in becoming more resilient and tapping international pools for their capital requirements. Introduction of GST, Ind AS, ICDS, etc., are transformational changes, which are steps in the right direction for the country’s growth.


Topic Case Studies on compassion towards the weaker sections.

7) You are stuck in traffic driving a car. A poor girl looking very frail approaches you and start begging for  money. Looking at her frail appearance, out of compassion, you take out your wallet to search for a ten Rupees note.  The girl then snatches your wallet and starts running. A man on a motorbike who see this act, catches the girl and starts  beating her in full view of public. Now the traffic is moving and your car is in the middle of the road. What will you do in such a situation? And why?(250 words)

 

Why this question:

The case study examines multiple dimensions of a situation that involves dilemma, virtue of compassion towards the weaker section, punishing the wrong doer the right way .

 

Key demand of the question:

The question is upon situational ethics that is expected to be professed by you in such situations of conflict such as you being in the middle of the road, frail girl asking you for money, stealing your wallet, another person beating her up etc. The answer must explain the ethical angle involved at each instance and examine it closely and arrive at an amicable solution.

 

Structure of the answer:

Introduction:

Do not waste too many words here, as case studies require more explanation, keep the introductory lines short and crisp avoid re-iterating the question statement.

Body:

Discuss what actions would you take :

  1. Firstly pullover the car to the side of the road, so as to have no disturbance to the traffic.
  2. Reach the spot where the man is beating girl and immediately  stop him and ask him not to beat or take law in his hand. Thank him for helping him at the same time remind him that  the girl is very young and could have acted out of hunger too, remind him gently that it is a public space and such act physical  violence could land him in legal trouble. This should lower his anger.
  3. Report the incident to the nearest police station , handover her custody.
  4. Explore if she can be put up with an NGO or a remand home where she can be mended of her ill mindset.

 

Conclusion:

Conclude that each situation has a derived prospect of its own, one has to keep their ethics and virtues high and adhere to them.

Introduction:

The above case study shows the prevalence of poverty and begging in our society despite clocking 6% economic growth over a past few years.

Body:

In such situations there is a need of presence of mind and how a person responds rather than reacting.

In the above situation, I would take the following steps:

  • Firstly pullover the car to the side of the road, so as to have no disturbance to the traffic. It is a civic duty of a citizen to follow the traffic rules.
  • Reach the spot where the man is beating girl and immediately stop him and ask him not to beat or take law in his hand. It is also against human dignity to physically abuse another person.
  • Thank him for helping him at the same time remind him that the girl is very young and could have acted out of hunger too, remind him gently that it is a public space and such act physical violence could land him in legal trouble. This should lower his anger.
  • As a responsible citizen, I would report the incident to the nearest police station, hand her over to custody.
  • Explore if she can be put up with an NGO or a remand home where she can be mended of her ill mindset.

Conclusion:

The situational ethics depict how strong our values are how these values dictate our attitudes towards people. Emotional intelligence helps us in understanding the emotional state of others and respond accordingly.