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General Studies – 1
Topic: The Freedom Struggle — its various stages and important contributors/contributions from different parts of the country.
Difficulty level: Easy
Reference: Chapter 1- India’s Struggle for Independence by Bipan Chandra.
Why the question: The question is part of the static syllabus of General studies paper – 1 and mentioned as part of Mission-2023 Secure timetable.
Key Demand of the question: To write about the impact created by the revolt of 1857.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Start by briefly mentioning how the 1857 uprising was successfully quelled by the British.
Body:
First, write about how revolt of 1857 jolted the British administration.
Next, Mention the various re-alignment policies in administration such a British crown taking over control from EIC, Military strengthening, Transfer of Power, Divide and Rule, New Policy Towards the Princess, Search for New allies etc brought by the British as a way to avoid any such future uprising.
Conclusion:
Conclude by mentioning that although the British succeeded in overpowering the Uprising, it proved to be the beginning of resistance from the people of India.
Introduction
The cumulative effect of British expansionist policies, economic exploitation, and administrative innovations over the years had adversely affected the positions of all—rulers of Indian states, sepoys, zamindars, peasants, traders, artisans, pundits, maulvis, etc. The simmering discontent burst in the form of a violent storm in 1857, which shook the British empire in India to its very foundations.
Body
The revolt of 1857 shook the foundations of the British empire in India
- The revolt of 1857 played an important role in bringing the Indian people together and imparting to them the consciousness of belonging to one country.
- During the entire revolt, there was complete cooperation between Hindus and Muslims at all levels—people, soldiers, leaders.
- Rebels and sepoys, both Hindu and Muslim, respected each other’s sentiments.
- Immediate banning of cow slaughter was ordered once the revolt was successful in a particular area.
Nature of Revolt
Views differ on the nature of the 1857 revolt.
- It was a mere ‘Sepoy Mutiny’ to some British historians—”a wholly unpatriotic and selfish Sepoy Mutiny with no native leadership and no -popular support”, said Sir John Seeley.
- Dr K. Datta considers the revolt of 1857 to have been “in the main a military outbreak, which was taken advantage of by certain discontented princes and landlords, whose interests had been affected by the new political leader”
- It was at the beginning of the twentieth century that the 1857 revolt came to be interpreted as a “planned war of national independence”, by V.D. Savarkar.
- Dr R.C. Majumdar, however, considers it as neither the first, nor national, nor a war of independence as large parts of the country remained unaffected and many sections of the people took no part in the upsurge.
- According to Marxist historians, the 1857 revolt was “the struggle of the soldier-peasant democratic combine against foreign as well as feudal bondage”.
Impact: Re-alignment policies in administration by British post 1857
The revolt of 1857 marks a turning point in the history of India. It led to far-reaching changes in the system of administration and the policies of the British government.
- Direct Governance of Queen: Even before the revolt could be suppressed fully, the British Parliament, on August 2, 1858, passed an act for the Better Government of India. The act declared Queen Victoria as the sovereign of British Indiaand provided for the appointment of a Secretary of State for India (a member of the British cabinet).
- The direct responsibility for the administration of the country was assumed by the BritishCrown and Company rule was abolished.
- The assumption of the Government of India by the sovereign of Great Britain was announced byLord Canning at a durbar at Allahabad in the ‘Queen’s Proclamation’ issued on November 1, 1858.
- Princely states and paramountcy: As per the Queen’s proclamation, theera of annexations and expansion had ended and the British promised to respect the dignity and rights of the native princes. The Indian states were henceforth to recognise the paramountcy of the British Crown and were to be treated as parts of a single charge.
- The people of India were promised freedom of religion without interference from British officials.
- Rule of law:The proclamation also promised equal and impartial protection under law to all Indians, besides equal opportunities in government services irrespective of race or creed. It was also promised that old Indian rights, customs, and practices would be given due regard while framing and administering the law.
- Army reforms:The army, which was at the forefront of the outbreak, was thoroughly reorganised and British military policy came to be dominated by the idea of “division and counterpoise”.
- The British couldno longer depend on Indian loyalty, so the number of Indian soldiers was drastically reduced even as the number of European soldiers was increased.
- The concept of divide and rule was adopted, with separate units being created on the basis of caste/community/region.
- Recruits were to be drawn from the ‘martial’ races of Punjab, Nepal, and north-western frontier who had proved loyal to the British during the revolt. Effort was made to keep the army away from civilian population.
- Divide and Rule: The policy of divide and rule started in earnest after the Revolt of 1857. The British used one class/community against another unscrupulously.
- Thus, socially, there wasirremediable deterioration. While British territorial conquest was at an end, a period of systematic economic loot by the British began.
Conclusion
For the British, the Revolt of 1857 proved useful in that it showed up the glaring shortcomings in the Company’s administration and its army, which they rectified promptly. These defects would never have been revealed to the world if the Revolt had not happened.
For the Indians, the 1857 Revolt had a major influence View In conceptual terms, the British who had started their rule as ‘outsiders’, became ‘insiders’ by vesting in their monarch the sovereignty of India. Bernard Cohn (in context of the Queen’s Proclamation) on the course of the struggle for freedom. It brought out in the open grievances of people and the sepoys, which were seen to be genuine. The Revolt of 1857 did establish local traditions of resistance to British rule which were to be of help in the course of the national struggle for freedom.
Value addition
Various causes for the defeat of the rebel
- All-India participation was absent: Limited territorial spread was one factor; there wasno all-India veneer about the revolt. The eastern, southern, and western parts of India remained more or less
- All classes did not join: Certain classes and groups did not join and, in fact, worked against the revolt.
- Big zamindarsacted as ‘break-waters to storm’; even Awadh talukdars backed off once promises of land restitution were spelt out.
- Moneylendersand merchants suffered the wrath of the mutineers badly and, anyway, saw their class interests better protected under British patronage.
- Poor Arms and Equipment:The Indian soldiers were poorly equipped materially, fighting generally with swords and spears and very few guns and muskets.
- On the other hand, the European soldiers were equippedwith the latest weapons of war like the Enfield rifle. The electric telegraph kept the commander-in-chief informed about the movements and strategy of the
- Uncoordinated and Poorly Organised:The revolt was poorly organised with no coordination or central leadership.
- The principal rebel leaders—Nana Saheb, Tantia Tope, Kunwar Singh, Laxmibai—were no match to their British opponents in general ship.
- No Unified Ideology:The mutineers lacked a clear understanding of colonial rule; nor did they have a forward-looking programme, a coherent ideology, a political perspective, or a societal alternative. The rebels represented diverse elements with differing grievances and concepts of current politics.
Topic: The Freedom Struggle — its various stages and important contributors/contributions from different parts of the country.
Difficulty level: Moderate
Reference: Chapter 9 – A Brief History of Modern India by Rajiv Ahir (Spectrum Publishers)
Why the question: The question is part of the static syllabus of General studies paper – 1 and mentioned as part of Mission-2023 Secure timetable.
Key Demand of the question: To write about the contributions of Raja Ram Mohan Roy.
Directive word:
Elaborate – Give a detailed account as to how and why it occurred, or what is the context. You must be defining key terms wherever appropriate and substantiate with relevant associated facts.
Structure of the answer:
Introduction:
Give a brief intro into the personality of Rajaram Mohan Roy and how western education influenced his perspective on Indian society
Body:
Mention the reforms brought in by Rajaram Mohan Roy such as Reinterpreting Hinduism, his mix of modernism with tradition, on caste and Women’s rights, on sati system, on political liberalism etc.
Write about his various measures he took to achieve the above.
Conclusion:
Conclude by saying his legacy makes him rightly been called as father of Modern India.
Introduction
Rammohun Roy is considered as a pioneer figure in Indian Renaissance. He was a multifaceted social, religious and educational reformer, renowned for his pioneering role in opposing practices like Sati, child marriage and social divisions and for advocating education. His elements of modernity and nonconformism to regressive traditions earned him the sobriquet as “father of Modern India”.
Body
Raja Ram Mohan Roy’s contributions in making India progressive and rational:
- Social reforms:
- The abolition of the brutal and inhuman Sati Pratha was his most prominent effort towards reforming Indian society.
- His efforts were also instrumental in eradicating the purdah system and child marriage.
- He advocated widow remarriage and education of women.
- Raja Ram Mohan Roy’s name is thus etched forever as a true benefactor of women not just for helping abolish the custom of Sati, but also raising his voice against child marriage and polygamy, while demanding equal inheritance rights for women.
- He was also a great opponent of the rigid caste divisions of his time.
- Educational:
- He paved the way to revolutionizing education system in India by establishing Hindu College in 1817 along with David Hare.
- Hindu College later went on to become one of the best educational institutions in the country producing some of the best minds in India.
- His efforts to combine true to the roots theological doctrines along with modern rational lessons saw him establish the Anglo-Vedic School in 1822 followed by the Vedanta College in 1826.
- Philosophical:
- In 1828, Ram Mohan Roy formed the Brahmo Samaj, uniting the Brahmos in Calcutta, a group of people, who had no faith in idol-worship and were against the caste restrictions.
- He looked back to a tradition in search of monotheism, and looked forward to a sort of Protestant reformation within the Hindu milieu.
- He implied that every religion has a philosophical core, and as for Hinduism it was Vedanta.
- The Vedanta provided him with the cultural category while his interpretation of it as monotheistic yielded a comprehensive, holistic theory, which provided a comprehensive critique of culture, society and ideology.
- Raja’s monotheistic Vedanta provided people with an idea of the paradigms of social change.
- It enabled people to consider the comparative adequacy of ways of life that might claim people’s allegiance. In such humanitarian vision lies Raja’s lure and his share in India’s modernity.
- He stressed on rationalism and modern scientific approach.
- Journalism:
- Ram Mohan Roy was a staunch supporter of free speech and expression.
- He fought for the rights of vernacular press.
- He also brought out a newspaper in Persian called ‘Miratul- Akhbar’ (the Mirror of News) and a Bengali weekly called ‘Sambad Kaumudi’ (the Moon of Intelligence).
Conclusion
Raja Ram Mohan Roy and his Brahmo Samaj played a vital role in awakening Indian society to the pressing issues plaguing society at that time and also was the forerunner of all social, religious and political movements that happened in the country since.
General Studies – 2
Topic: Statutory, regulatory and various quasi-judicial bodies.
Difficulty level: Moderate
Reference: Indian Express
Why the question: Parameswaran Iyer, who had spearheaded the implementation of the flagship $20 billion Swachh Bharat Mission, on Monday took charge as the CEO of Niti Aayog.
Key Demand of the question: To write about the role of NITI Aayog in cooperative federalism, challenges it faces and steps needed to overcome them.
Directive word:
Examine – When asked to ‘Examine’, we must investigate 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.
Structure of the answer:
Introduction:
Start by briefly mentioning aims and objectives of NITI Aayog,
Body:
First, write about the role of NITI Aayog in cooperative federalism and to good governance in India.
Next, write about the various challenges facing NITI Aayog in the present times.
Next, suggest ways to overcome them.
Conclusion:
Conclude by writing a way forward.
Introduction
The National Institution for Transforming India, also known as NITI Aayog, was formed via a resolution of the Union Cabinet on 1 January 2015. It is the premier policy “Think Tank” of the Government of India, providing directional and policy inputs. Apart from designing strategic and long-term policies and programs for the Government of India, NITI Aayog also provides relevant technical advice to the Centre, States, and Union Territories.
Body
Role of Niti Aayog in cooperative federalism & good governance in India
- The institution has to provide governments at the central and state levels with relevant strategic and technical advice
- Dissemination of best practices from within the country as well as from other nations
- The infusion of new policy ideas and specific issue-based support
- To respond to the changing and more integrated world that India is part of
- Ensure that the economically vibrant middle-class remains engaged, and its potential is fully realized
- Incorporate the significant geo-economic and geo-political strength of the Non-Resident Indian Community
- Use technology to reduce opacity and potential for misadventures in governance
- Ensure that India is an active player in the debates and deliberations on the global commons
- NITI Aayog has been providing relevant technical advice to the Centre, States and UTs.
- NITI has also established models and programmes for the development of infrastructure and to reignite and establish private-public partnership, such as the Centre-state partnership model Development Support Services to States and Union Territories (DSSS); and the Sustainable Action for Transforming Human Capital (SATH) programme.
Current challenges plaguing NITI Aayog
- To achieve these in practice will require the NITI Aayog to overcome the two key challenges.
- Access high-quality researchers in multiple disciplines who can partner with policymakers.
- Creating a willingness among policymakers to learn from evidence.
- There are other many challenges ahead for NITI Aayog, the most significant of which is bringing all stakeholders on board to fully realize the aspirations of the common man and bring development to the village level by enacting policies that are people-centric, or it will simply be old wine in new bottles.
- NITI Aayog has no powers in granting discretionary funds to states, which renders it toothless to undertake a transformational intervention.
- It acts as an advisory body onlythat advises the government on various issues without ensuring the enforceability of its ideas.
Way forward
- Planning decentralization, but within the framework of a five-year plan. It is necessary to shake bureaucratic inertia by specializing it and establishing performance-based responsibility.
- Over time, the NITI Aayog could become a change agent, contributing to the government’s aim of improving governance and introducing innovative ways to improve public service delivery.
- NITI Aayog continues to be a symbol of the country’s efficient, transparent, innovative, and responsible governance structure, as well as exemplary work ethics.
- NITI Aayog should be given a financing function so that it can assist in bridging the gap between states’ development experiences.
- An alternative is to make the Finance Commission a permanent organization that can oversee fiscal transfer mechanisms rather than just giving a five-year tax-sharing formula.
General Studies – 3
Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.
Difficulty level: Tough
Reference: Live Mint
Why the question: India has more than 100 unicorns—startups that are valued at $1 billion or more. As many as 42 unicorns appeared last year, as against 37 in the previous 10 years.
Key Demand of the question: To write about the factors aiding unicorn boom and steps needed to make them successful.
Directive word:
Critically examine – When 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 judgment.
Structure of the answer:
Introduction:
Begin by defining a Unicorn.
Body:
First, in brief, give reasons for the unicorn boom in India – thriving digital payments ecosystem, large smartphone user base and digital-first business models, and digitization of commerce etc.
Next, write about the impediments to growth and profitability of these Unicorns. Mention the concerns associated with the same.
Next, write about the steps that are needed to ensure their growth – for proper regulatory mechanism, performance pressure, business revenue improvement etc.
Conclusion:
Conclude with a way forward.
Introduction
In the venture capital industry, the term unicorn refers to any startup that reaches the valuation of $1 billion. The term was first coined by venture capitalist Aileen Lee in 2013. Mostly, all the unicorns have brought a disruption in the field they belong to. Uber, for example, changed the way people commuted. Airbnb changed the way people planned their stay while travelling and Snapchat disrupted the usage of the social media network etc.
India’s tally of unicorns has reached 100 recently, which was told by PM in Mann ki Baat.
Body
Factors that have aided the Unicorn boom in India over the recent past
- A huge population: The country has over 1.3 billion people, which provides a large market for these startups to tap into. India also has a burgeoning middle class with more disposable income than ever before.
- A supportive government: The Indian government has been very supportive of the startup ecosystem. It has been implementing policies that provide a conducive environment for businesses to grow and raise funds.
- The Indian government’s long-term strategies and concerted push through initiatives like Startup India and Digital India have joined forces with the embrace of digital finance, rise of Indian IT companies, large talent pool, increased expendable income of Indian middle class and availability of capital to significantly boost the growth of India’s startup ecosystem.
- Increasing investment opportunities: The availability of capital has also increased, with more and more venture capitalists and private equity firms investing in Indian startups. In the first quarter of 2022, the number of Indian startups that have been funded hit a record high of 506, and the funds raised totaled to US$11.8 billion.
- Besides these hardware-ish factors, the unicorn craze in India is also facilitated by the opportunities brought forth by the regulatory action on tech giants in China and the pandemic.
- Last year’s unicorn boom coincided with Beijing’s crackdown on Chinese internet businesses, which alarmed investors and drove them to look for alternative geographies to invest their funds.
- Simultaneously, COVID-19 compelled Indian customers to turn to online enterprises for their daily needs, ranging from food to medical services.
- These factors have offered new opportunities for Indian startups and contributed to the growth of Indian technological firms, resulting in an increase in the number of unicorns.
Factors that are needed in order to ensure they succeed and become profitable, while contributing to job creation
- The factors enabling the rise of unicorns comprise the availability of private equity funds, increasing Internet penetration and digital payments, more robust infrastructure and the rising pool of skilled talent.
- Considering the focus on creating an Aatmanirbhar Bharat, however, the nation’s policymakers, risk-taking corporates and funding agencies need to foster a conducive climate for ensuring easier availability of domestic capita
- As business models get more complex and interlinked, the regulators have to play a more proactive role in formulating appropriate regulations that encourage innovation and support emerging business models rather than hindering innovation.
- Besides promoting local funding, the government and corporate entities may need to invest in a big way through leading academic institutions to de-risk start-up investments in the long run.
- It appears that corporations and valuation experts overestimate the Indian economy’s potential to consume services by assuming exponential demand growth over longer time periods.
- Firms spend a lot of money to offer huge discounts to clients in the hopes that people would become so used to these platforms that they will continue to use them even if the prices are raised. This could lead to cartelization and market monopoly on a long run.
Conclusion
By providing the “minicorns” (a start-up with $1 million-plus valuation) and “soonicorns” (funded by angel investors or venture capitalists and likely to soon join the unicorn club) the right regulatory ambience and local sources of funding, India can create a truly innovative and resilient economy.
With the ecosystem in place and the resilience of the industry apparent amid the pandemic, innovators and entrepreneurs are thus braced for a promising journey to create hundreds of Indian unicorns in the near future.
Topic: Science and Technology- developments and their applications and effects in everyday life.
Difficulty level: Moderate
Reference: The Hindu
Why the question: The first image from NASA’s new space telescope is the deepest view of the universe ever captured.
Key Demand of the question: To write about the significance of James Webb telescope.
Directive word:
Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.
Structure of the answer:
Introduction:
Begin by mentioning the context of James Webb telescope.
Body:
In the first part, mention the various features of James Webb telescope.
Next, write about how James Webb telescope will contribute to the advancement of science. Mention the things that have already been observed in it.
Conclusion:
Conclude by summarising.
Introduction
The world’s most powerful space telescope – James Webb Telescope (JWT), headed to an outpost 1.5 million kilometres (930,000 miles) from Earth, is an exemplar of collaborative science and human ingenuity. Named after a former NASA director, Webb follows in the footsteps of the legendary Hubble — but intends to show humans what the Universe looked like even closer to its birth nearly 14 billion years ago. Though Webb is often called the replacement for the Hubble Space Telescope (HT) , NASA said it prefers to call it a successor.
Body
Features of James Webb Telescope:
- Wavelength:
- The James Webb Space Telescope, carrying four scientific instruments, will observe primarily in the infrared range and provide coverage from 0.6 to 28 microns.
- Size comparisons
- Webb’s primary mirror has a diameter of 6.5 metres.
- So, Webb will have a larger field of view.
- Webb also carries a large sun shield measuring about 22 metres by 12 metres – about the size of a tennis court.
- Orbit
- Webb will not orbit the Earth. It will orbit the sun at about 1.5 million kilometres away from Earth.
- As the Earth orbits the Sun, Webb will orbit with it – but it will stay fixed in the same spot with relation to the Earth and the Sun.
- How far can they see?
- NASA says, “Hubble can see the equivalent of “toddler galaxies” and Webb Telescope will be able to see “baby galaxies”.”
- Webb’s near- and mid-infrared instruments will help study the first formed galaxies, exoplanets and birth of stars.
Insights JWT can offer about past
- It is widely expected to unveil many secrets of the universe, particularly those related to the formation of stars and galaxiesin the early period the first few hundred million years after the Big Bang.
- Powerful space telescopes, like JWST or the Hubble Telescope, are often called time-machines because of their ability to view very faraway objects.
- The light coming from those objects, stars or galaxies, which is captured by these telescopes, began its journey millions of years earlier.
- Essentially, what these telescopes see are images of these stars or galaxies as they were millions of years ago. The more distant the planet or star, the farther back in time are the telescopes able to see.
- JWST is much more powerfuland has the ability to look in the infrared spectrum, which will allow it to peer through much deeper into the universe, and see through obstructions such as gas clouds.
- As electromagnetic waves travel for long distances, they lose energy, resulting in an increase in their wavelength.
- An ultraviolet wave, for example, can slowly move into the visible light spectrum and the infrared spectrum, and further weaken to microwaves or radio waves, as it loses energy.
- Hubble was designed to look mainly into the ultraviolet and visible regions of the electromagnetic spectrum. JWST is primarily an infrared telescope, the first of its kind.
- It can also analyse the atmospheres of exoplanetsthat pass in front of their stars.
- It will look at a large number of things in the universe including icy moons, distant exoplanets and galaxy clusters.
Conclusion
JWST will study every phase in the history of our Universe, ranging from the first luminous glows after the Big Bang, to the formation of solar systems capable of supporting life on planets like Earth, to the evolution of our own Solar System, etc. Scientists hope this set-up can detect the light from the very first population of stars in the Universe to switch on more than 13.5 billion years ago.
General Studies – 4
Topic: corporate governance.
Difficulty level: Tough
Reference: The Hindu
Why the question: The biggest banking scam in India has come to the forefront in the midst of celebrations of ‘Aazadi Ka Amrit Mahotsav’; in this case, Dewan Housing Finance Corporation Limited (DHFL) has hoodwinked a consortium of banks driven by the Union Bank of India to the tune of ₹35,000 crore through financial misrepresentation.
Key Demand of the question: To write about changes needed in t4he corporate governance of banks to prevent frauds.
Structure of the answer:
Introduction:
In the introduction, give context of rising bank frauds.
Body:
First, write about the reasons as to why these banking frauds occur.
Next, mention the changes needed in the corporate governance structure of banks to prevent these frequent scams and frauds.
Conclusion:
Conclude by summarising.
Introduction
Corporate governance is the system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance involves balancing the interests of a company’s stakeholders such as shareholders, senior management executives, customers, suppliers, financiers, the government, and the community.
The biggest banking scam in India has come to the forefront in the midst of celebrations of ‘Aazadi Ka Amrit Mahotsav’, which depicts the tardy state of corporate governance in financial institutions of India.
Body
Background
- Dewan Housing Finance Corporation Limited(DHFL) has hoodwinked a consortium of banks driven by the Union Bank of India to the tune of ₹35,000 crore through financial misrepresentation.
- The DHFL case was not an isolated case.
- In February 2022, ABG Shipyard Limitedof Surat had already taken a loan of about ₹23,000 crore in a fake manner.
- There are many examples of bank scams: the Nirav Modiand Mehul Choksi scam involving the Punjab National Bank (₹11,400 crore), the case of businessman Vijay Mallya (₹9,000 crore) involving nearly 13 banks, the Andhra Bank fraud (₹8,100 crore), the PMC scam (₹4,355 crore), the Rotomac Pen scam (₹3,695 crore), the Videocon case (₹3,250 crore), the Allahabad Bank fraud (₹1,775 crore), the Syndicate Bank scam (₹1,000 crore), the Bank of Maharashtra scam (₹836 crore), the Kanishk Gold Bank fraud (₹824 crore), the IDBI Bank fraud (₹600 crore), and the R.P. Info Systems Bank scam (₹515 crore) to name just a few.
Reasons for the occurrence of banking frauds
- A study by the Indian Institute of Management Bangalore has shown that poor bank corporate governance is the cause behind rising bank scams and NPAs.
- Data by the Reserve Bank of India (RBI) show that around 34% of scams in the banking industry are on account of inside work.
- Poor lending practices by bank staff and the involvement of the junior and mid-level management in collusive corruption.
- The data by the RBI also show that one of the fundamental problems in the way of the development of banking in India is on account of rising bank scams and the costs consequently forced on the framework.
The changes needed in the corporate governance structure of banks to prevent these frequent scams and frauds
- Banks have to exercise due diligence and caution while offering funds.
- The regulation and the control of chartered accountants is a very important step to reduce non-performing assets of banks.
- Banks should be cautious while lending to Indian companies that have taken huge loans abroad.
- There is also an urgent need to tighten the internal and external audit systems of banks.
- The fast rotation of employees of a bank’s loan department is very important.
- Public sector banks should set up an internal rating agency for rigorous evaluation of large projects before sanctioning loans.
- Further, there is a need to implement an effective Management Information System (MIS) to monitor early warning signals about business projects.
- The CIBIL score of the borrower (formerly the Credit Information Bureau (India) Limited) should be evaluated by the bank concerned and RBI officials.
- This must also include the classification and responsibilities of the lending and recovery departments.
- Financial fraud can be reduced to a great extent by the use of artificial intelligence(AI) to monitor financial transactions.
Conclusion
While the Government of India and the RBI have taken several measures to try and resolve the issue of scams in the banking industry, the fact is that there is still a long way to go. Rather than having to continuously write off the bad loans of large corporates, India has to improve its loan recovery processes and establish an early warning system in the post-disbursement phase. Banks need to carry out fraud risk assessments every quarter.
Value addition
Other measures needed
- Ensure a balanced, competent and diverse Board: Studies show Boards with greater gender diversity result in improved financial performance.
- Review Board composition on a regular basis to identify any shortcomings and make timely improvements.
- Establish, monitor and evaluate the roles and responsibilities of the Board and management.
- Gear key performance indicators towards long term value creation not just in the short term.
- Establish an effective risk management and internal control framework and periodically review its effectiveness.
- Ensure integrity in corporate reporting such as conducting external audits of the business.
- Beyond stricter supervision, authorities must ensure governance is not done in the letter of the law, but rather in the spirit of the law.
- Only then can the true purpose of corporate governance and its fundamental principles of transparency, accountability, fairness and equity, and responsibility be achieved.
Topic: Aptitude and foundational values for Civil Service
Difficulty level: Moderate
Why the question: The question is part of the static syllabus of General studies paper – 4 and part of ‘Conceptual Tuesdays’ in Mission-2023 Secure.
Key Demand of the question: To write about the essential traits of responsive civil servant.
Structure of the answer:
Introduction:
Start by describing a responsive civil servant.
Body:
Elaborate on five essential traits of a responsive civil servant. Cite examples to substantiate how those traits make him responsive.
Conclusion:
Complete by mentioning the importance of civil servants being responsive.
Introduction
A responsive civil servant is one who as a policymaker – practices considering the changing needs, wishes, and claims of citizens, the degree to which policymakers alter the public administration and policy positions and spends in accordance with change in public opinion.
Body
Five essential traits of a responsive civil servant
- Integrity: It is the highest level of honesty which is displayed even in the thought process of an individual. It also helps a civil servant to be courageous as he is on the right side of the justice.
- Objectivity: Makes a civil servant impartial and non-partisan to take decisions based on merit without any sort of personal bias;. It ensures fairness in action and tolerance towards opposing views.
- Transparency and Accountability: It is the answerability and taking up responsibility by the civil servants for their acts of commission and omission. It makes administration transparent and public oriented, by building public trust and deterring the unethical conduct.
- Commitment and dedication towards service: It ensures that an administrator is totally in line with the needs of the people and service delivery oriented.
- Compassion and empathy: This is mostly towards the vulnerable and needy section of the society who need an innovative solution and effective resolution of the problem by not compromising on the high standards of objectivity.
Conclusion
Ethics in Civil Services essentially plays an important role as it is helps in constant improvement in the quality of decision making. They ensure that there is management of the government affairs, it deals with the system of governance and helps in managing the affairs effectively.
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