Print Friendly, PDF & Email

[Mission 2023] Insights SECURE SYNOPSIS: 7 March 2023

 

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


General Studies – 1


 

Topic: The Freedom Struggle — its various stages and important contributors/contributions from different parts of the country.

1. Throw light on the development of the nationalism in the princely states. Discuss the contributions of Sheikh Abdullah’s in developing nationalistic and political consciousness in Kashmir. (250 words)

Difficulty level: Tough

Reference: Indian Express , Wikipedia

Why the question:

With Bharat Jodo Yatra ending in Kashmir, a reason to remember Sheikh Abdullah and his contributions.

Key Demand of the question:

To write about development of nationalism the princely states and contributions of Sheikh Abdullah.

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 giving context regarding princely states.

Body:

First, write about several factors that led to the development of nationalism in princely sates- Indian National Congress, emergence of local nationalist leaders, the role of the press and education, and the impact of the Second World War and the Quit India Movement of 1942.

Next, write about the contributions of Sheikh Abdullah to the development of nationalistic consciousness in Kashmir.

Conclusion:

Conclude by summarising.

Introduction

The princely states constituted two-fifths of British India. The people of princely states were burdened with higher land taxes, non-protection of civil liberties and were largely deprived of modernization in education, transport, communication taking place in the rest of British India.

Body

Development of nationalism in princely states

  • Rising political consciousness and national awakening in British India with movements like Khilafat and Non-Cooperation had a large impact on the people of princely states. This resulted in the organisation and mobilization of people in various princely states.
  • The urban middle class organised themselves into Praja-Parishads or Praja Mandals with nationalistic ideas emerging in the princely states.
  • Earliest of them was in Baroda in 1917, followed by Kathiawar, Mysore, Hyderabad, etc.
  • The All-India States People’s Conference was organized in 1927 with an aim to influence states governments to initiate necessary reforms in administration and demanding democratic rights.
  • Activities of Praja Mandal Movements implemented the constructive programmes of the Indian National Movement in their princely states by establishing schools, using khadi, encouraging cottage industries and fighting against the practices like untouchability.
  • From the mid-20s, the Congress too changed its stance, affirmed by the presidential address of Pandit Jawaharlal Nehru in 1929 which stated that the ‘Indian States cannot live apart from the rest of India.’ At the 1938 Haripur Session, the Congress included the independence of the princely states as well in its goal of Poorna Swaraj or complete independence.

Contributions of Sheikh Abdullah in developing political consciousness in Kashmir

  • Sheikh Abdullah’s nationalistic and political consciousness sparked at the University at Aligarh in the 1920s but synthesised in the Muslim Conference formed after Maharaja Hari Singh’s forces fired on peaceful protesters in 1931.
  • The Maharaja jailed Sheikh often but ironically handed him leadership as “Emergency Administrator” after terrorists enforced the Maharaja’s hasty retreat from Srinagar to Jammu. Sheikh often said “Hamne to Hukumat Lal Chowk mein pari pai” (we found the government lying in Lal Chowk) and ably assisted the Indian army in hunting down retreating the disguised Pakistani terrorists.
  • His 1948 speech to the United Nations was clear: Kashmir was a part of India. Later, the Sheikh privately told US ambassador Loy Henderson that if independence was impossible, Kashmir preferred India over Pakistan.

Conclusion

Thus, by the time Indian independence reached its final stage in the 1940s, national awakening and mobilization of people in princely states by nationalistic movements have already created the essential political infrastructure for furthering the mobilization for and pace of India’s freedom along with a foundation for the integration of princely states into Indian Union.

 


General Studies – 2


 

Topic: Salient features of the Representation of People’s Act.

2. The anti-defection law has been criticized for its ineffectiveness in achieving its objectives. The law has several loopholes leading to political opportunism and instability in the political system. To make the law more effective, there is a need for stricter enforcement and addressing the loopholes in the law. Comment. (250 words)

Difficulty level: Moderate

Reference: The HinduInsights on India

Why the question:

After long years of legislative meanderings, Parliament enacted the anti-defection law (10th Schedule) in 1985 to curb political defection. Years have passed and this promise of political stability seems to be ending with the anti-defection law facing convulsions in Indian legislatures, especially in the last five years. The happenings in the State of Maharashtra are an example.

Key Demand of the question:

To write about the shortcomings of the anti-defection law and measures needed to make the law more effective.

Directive word: 

Comment– here we must express our knowledge and understanding of the issue and form an overall opinion thereupon.

Structure of the answer:

Introduction: 

Write about objectives of anti-defection law.

Body:

First, write about various features of anti-defection pertaining to disqualification.

Next, write as to why the anti-defection has been ineffective – lack of strict enforcement, loopholes in the law, encouragement of horse-trading, political opportunism, and the inability to criticize party policies. Substantiate with examples.

Next, suggest measures needed to overcome the above limitations and make the law more effective.

Conclusion:

Conclude with a way forward.

Introduction

Defection is “desertion by one member of the party of his loyalty towards his political party” or basically it means “When an elected representative joins another party without resigning his present party for benefits”. The institutional malaise is defection and party-hopping is state- neutral, party-neutral, and politics-neutral.

A five-judge Bench of the Supreme Court of India is presently hearing a set of cases popularly known as the “Maharashtra political controversy cases”. These cases arose out of the events in June last year, when the ruling Maha Vikas Aghadi (MVA) coalition (the Shiv Sena, the Nationalist Congress Party and Congress) lost power after an internal splintering of the Shiv Sena party.

Body

Background

  • For a very long time, the Indian political system was impacted by political defections by members of the legislature. This situation brought about greater instability and chaos in the political system.
  • Thus, in 1985, to curb the evil of political defections,the 52nd constitution amendment act on Anti-defection law was passed and the 10th Schedule was added in the Indian Constitution.
  • The main intent of the law was to combat “the evil of political defections” which may be due to reward of office or other similar considerations.
  • The law applies to both Parliament and state assemblies. However, there are several issues in relation to the working of this law.
  • 91st Constitution Amendment Act-2003was enacted and was aimed at limiting the size of the Council of Ministers to debar defectors from holding public offices, and to strengthen the anti-defection law.

 

Flaws of the current Anti-defection law

  • Does not prevent Defection: The Anti-defection law has failed to curb “horse trading” and defection, leading to toppling of governments through machinations of corrupt legislators.
    • Eg: The 17-MLA’s of coalition government resigned in Karnataka, leading to change in government. The 17 MLA’s later contested from the party that formed new government.
  • Wholesale defection: The law prevents individual defections, but not wholesale defections.
    • Eg: Congress government in Madhya Pradesh lost majority due to resignations of MLA’s.
  • Against the true spirit of representative democracy:The anti-defection law seeks to provide a stable government by ensuring the legislators do not switch sides.
    • However, this law also enforces a restriction on legislators from voting in line with their conscience, judgement and interests of his electorate.
  • Impedes legislative control on government:The anti-defection law impedes the oversight function of the legislature over the government, by ensuring that members vote based on the decisions taken by the party leadership.
    • In short, if legislators are not able to vote on laws independently, they would not act as an effective check on the government.
    • The Anti-Defection Law, in effect, dilutes the separation of powers between the Executive and the Legislature – and centralises power in the hands of the executives.
  • Role of presiding officer of the house:The law lays down that legislators may be disqualified on grounds of defection by the Presiding Officer of a legislature based on a petition by any other member of the House.
    • However, there are many instances when presiding officers play a part with the vested interests of a political party/government in power.
    • Also, the law does not specify a time period for the Presiding Officer to decide on a disqualification plea.
    • The decision thus is sometimes based on the whims and fancies of the presiding officer.
  • Affects the debate and discussion:The Anti-Defection Law has created a democracy of parties and numbers in India, rather than a democracy of debate and discussion.
    • In this way, it does not make a differentiation between dissent and defection and weaken the Parliamentary deliberations on any law.

Steps to be taken

  • To be used for major decision making:Several experts have suggested that the law should be valid only for those votes that determine the stability of the government. e.g. passage of the annual budget or no-confidence motions as recommended by Dinesh Goswami Committee.
  • Non-partisan authority:Various commissions including National Commission to review the working of the constitution (NCRWC) have recommended that rather than the Presiding Officer, the decision to disqualify a member should be made by the President (in case of MPs) or the Governor (in case of MLAs) on the advice of the Election Commission.
  • Independent committee for disqualification:Justice Verma in Hollohan judgment said that tenure of the Speaker is dependent on the continuous support of the majority in the House and therefore, he does not satisfy the requirement of such independent adjudicatory authority.
    • Also, his choice as the sole arbiter in the matter violates an essential attribute of the basic feature.
    • Thus, the need for an independent authority to deal with the cases of defection.
  • Intra-party democracy: 170thLaw Commission report underscored the importance of intra-party democracy by arguing that a political party cannot be a dictatorship internally and democratic in its functioning outside.
    • Thus, the parties should listen to the opinions of the members and have discussions on the same. This would give the freedom of speech and expression to its members and promote inner-party democracy.
  • Limiting Speaker’s discretion: Recent Supreme Court Judgement ruled that Speaker must decide on disqualification within three months of receiving application. It cannot be the discretion of the Speaker to take no action.

Conclusion

There is a need to prevent unholy defections that lead to instability in the governance system of the nation. The current law is clearly flawed and has not effectively curbed defection due to lure of power and money. There is a need for a more rationalised version of anti-defection laws which will help establish a truly representative democracy.

 


General Studies – 3


 

Topic: Issues related to direct and indirect farm subsidies and minimum support prices; Public Distribution System- objectives, functioning, limitations, revamping; issues of buffer stocks and food security; Technology missions; economics of animal-rearing.

3. Doubling the income of India’s farmers is an ambitious goal that requires a comprehensive and holistic approach aimed at boosting productivity of agriculture. Analyse. (250 words)

Difficulty level: Moderate

Reference: Indian ExpressInsights on India

Why the question:

On February 28, 2016, Prime Minister Narendra Modi shared his dream of doubling farmers’ incomes in the year when India completes 75 years of Independence and enters Amrit Kaal. Now that we have entered Amrit Kaal, it is a good time to revisit that dream and see if it has been fulfilled, and if not, how best it can be done.

Key Demand of the question:

To write about the measures needed to double farmers income.

Directive:

Analyse – When asked to analyse, you must examine methodically the structure or nature of the topic by separating it into component parts and present them in a summary.

Structure of the answer:

Introduction: 

Begin by giving context.

Body:

First, write about the causes for the falling crop incomes and unsustainable agriculture – Small holdings make agriculture uneconomic, Perpetual indebtedness, Inability to procure quality seeds, Lack of water and poor yields etc.

Next, suggest measures that are needed in order to overcome the above and double farmers income in India – Crop Diversification, Irrigation Facilities Providing Credit and Insurance, Strengthening Market Linkages, Investing in Agricultural Research and Development etc.

Conclusion:

Conclude by writing a way forward.

Introduction

In 2016, the Government had set the target of doubling farmers’ income by 2022-23. To achieve this goal, the government had set up a committee to recommend changes to all parts of the agricultural production and supply chain. The Committee listed its recommendations in a 14-volume report. At the time, by the government’s own calculations, a farming household in India earned an average of INR 8,059 per month, or about INR 97,000 per year. The Government is likely to miss the target as less than a year remains in the timeline. No individual state is likely to achieve it either.

Body

Challenges in achieving the goal of Doubling Farmer’s Income

  • Decreasing Profitability in agriculture sector: Profitability has been declining in recent years due to plummeting agricultural prices and rising cultivation costs. Recently, prices of critical inputs such as fuel and fertilizers have risen sharply as well. Further there have been issues in land and labour productivity on farms, post-harvest processing, agricultural research and extension, among others.
  • Web of Middlemen: There exists a strong web of intermediaries that enjoy maximum profit and leaves bare minimum revenue for the farmers. A major share of the income is cornered by the middlemen.
  • Policy Lacunae: According to many experts, the policies to achieve the growth rates have not been clearly articulated by the Centre to the states. This becomes extremely crucial considering agriculture is a State subject. In addition, there have been issues in the implementation of policy initiatives. For example, many States have opted out of PMFBY due to implementation issues.
  • High Input costs: Land degradation has become a major challenge and cost of farming is constantly rising with usage of fertilizer, pesticides, expensive seed varieties, machinery, labour cost, rise in fuel prices, vagaries of monsoon. This further complicates the livelihood of farmers
    • In India, farmers are poor due to low productivity (yield per hectare) of all major crops.
    • Growth in rural lending has decreased and indeed most of the rural lending is indirect rather than direct.
  • Credit, finance and Insurance: Raising the MSP, price deficiency payments or income support schemes can only be a partial solution to the problem of providing remunerative returns to farmers.
    • functional institutional credit system which is accessible and accountable to all cultivators.
    • This covers not only land-owning farmers but also sharecroppers, tenants, adivasi and women farmers, and animal-rearers.
    • Credit products for agriculture need to be tailor-made based on cropping and rain cycle, specific to a particular region. The regional offices of commercial banks should contribute in this exercise. Registration of all cultivators and providing Kisan credit cards.
    • The period of crop loan should be extendable to four years, given that, on average, every second or third year the spatial distribution of rain pattern is erratic in India.
  • Land holdings: The average size of farm holdings declined from 2.3 hectares in 1970-71 to 1.08 hectares in 2015-16.
    • Policies for land consolidation along with land development activities in order to tackle the challenge of the low average size of holdings.
    • Farmers can voluntarily come togetherand pool land to gain the benefits of size. Through consolidation, farmers can reap the economies of scale both in input procurement and output marketing.
  • Remunerative Prices: Extending reach of minimum support price which has been dedicated to few crops and in a narrow geographical area is important.
    • Set up of Futures and Trade markets, tie up of farmer and private companies for procurement should be looked into as alternative methods against distress sale.

Reforms to envision doubling of farmer’s income

  • Intervention of the Government: The government schemes will not help them double their income unless the government policies on agriculture are comprehensive, grant freedom of technology and market, and infuse more money into infrastructure development.
    • Ad hoc policies and schemes will not help farmers as long as the government intervenes in the market to control prices to keep the consumers happy at the cost of farmers.
  • Need for Technology & New Practices: The country needs to increase the use of quality seed, fertiliser and power supply for agriculture. Adoption of agronomic practices like precision farming to raise production and income of farmers substantially.
    • Since India is a diverse country where the majority of agriculture is monsoon dependent therefore interventions are needed which include research, technology promotion, extension, post-harvest management, processing and marketing, in consonance with the comparative advantage of each State/region and its diverse agro-climatic features.
  • Expansion in Required Areas: Area under irrigation has to be expanded by 1.78 million hectares and area under double cropping should be increased by 1.85 million hectares every year.
    • Besides, the area for fruits and vegetables is required to increase by 5% each year.
  • Improvement in Livestock Management: In the case of livestock, improvement in herd quality, better feed, increase in artificial insemination, reduction in calving interval and lowering age at first calving are the potential sources of growth.
  • Need for Comprehensive Reforms: About one-third of the increase in farmers’ income is easily attainable through better price realization, efficient post-harvest management, competitive value chains and adoption of allied activities.
    • This requires comprehensive reforms in market, land lease and raising of trees on private land.
  • Enhance Participation: Most of the development initiatives and policies for agriculture are implemented by the States. Therefore, it is essential to mobilise States and UTs to own and achieve the goal of doubling farmers’ income.
  • Need to Liberalise Agriculture: To attract responsible private investments in production and the market. Similarly, FPO (Farmers Producer Organisation)/FPC (Farmers Producer Company) can play a big role in promoting small farm businesses.

 Conclusion

To achieve government’s goal of doubling farmers’ incomes by 2022-23, the Dalwai Committee points out that farmers real incomes need to grow at 10.4 per annum, that is 2.8 times the growth rate achieved historically. To secure future of agriculture and to improve livelihood of half of India’s population, adequate attention needs to be given to improve the welfare of farmers and raise agricultural income. It is essential to mobilize States and UTs to own and achieve the goal of doubling farmers’ income with active focus on capacity building (technology adoption and awareness) of farmers that will be the catalyst to boost farmers’ income.

 

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

4. While Regional Rural Banks (RRBs) have played an important role in the development of rural areas, they face several challenges which hamper their performance. Addressing these challenges will be crucial to ensure the long-term viability and effectiveness of RRBs in promoting rural development. Examine. (250 words)

Difficulty level: Moderate

Reference: Insights on India

Why the question:

The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2023 Secure timetable.

Key Demand of the question: 

To write about the role of RRBs, challenges faced them and steps 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: 

Begin by defining a Regional Rural Banks (RRBs) as financial institutions and their aims.

Body:

First, write about role played by RRBs in rural development – providing access to credit, promoting financial inclusion, creating jobs, contributing to rural development, and acting as a channel for the delivery of government schemes.

Next, write about the limitations of RRBs- including low capital base, asset quality issues, lack of skilled manpower, inadequate technology, governance issues, and financial sustainability.

Next, write about the steps that are needed to overcome the above challenges.

Conclusion:

Conclude by writing a way forward.

Introduction

The Regional Rural Banks (RRBs) were established in 1975 under the provisions of the Ordinance promulgated on 26th September 1975 and Regional Rural Banks Act, 1976. RRBs are financial institutions which ensure adequate credit for agriculture and other rural sectors. RRBs combine the characteristics of a cooperative in terms of the familiarity of the rural problems and a commercial bank in terms of its professionalism and ability to mobilise financial resources.

Body

Significance of RRBs

  • Every RRB operates as a commercial bank, and in addition to directly granting short-term and long-term loans, it has the authority to mobilise savings.
  • They give loans for agriculture, allied activities, retail trade, and small rural industries.
  • They also specifically target the group of small and marginal farmers, landless labourers, rural artisans, and others through the Integrated Rural Development Programme by extending credit to the poorest of the poor in rural areas.
  • The Regional Rural Banks has a Priority Sector Lending (PSL) target of 75% where loans are lent to agricultural activities and vulnerable sectors.
  • These banks are also providing financial assistance to regional cooperative institutions inlow-incomestrengthen their financial bases and enable them to play a more positive role as viable financial institutions engaged in rural development.

Shortcomings

  • RRBs focus mainly on offering government’s schemes like direct benefit transfer in the rural areas of the country.
  • RRBs are dependent on NABARD to collect finance for their further operation.
  • Poor rural people are unable to save anything due to poverty and low per capita income.
  • The low level of savings of these customers create obstacles for RRBs to collect sufficient deposits.
  • The most troubling aspect of RRB operation is that they are, on average, losing money.
  • RRBs are creating this problem by concentrating their branches in some specific states and districts & losing other prospective groups of customers
  • The main factor that has contributed to their loss of profitability is that they exclusively lend to the poorer sections at low-interest rates, despite the fact that their operational costs in handling small loans are quite high.
  • Aside from that, loan recovery is unsatisfactory, and debts are piling up.

Way forward

  • The costs of operations of RRBswere much lower as compared to scheduled commercial banks but that has increased now and the government wants them to work towards increasing their earnings.
  • The RRB may be permitted to lend up to 25% of their total advancesto the richer section of the village society.
  • The State Governmentshould also take keen interest in the growth of RRB.
  • Participation of local people in the equity share capitalof the RRB should be encouraged.
  • Cooperative societies may be allowedto sponsor or co-sponsor with commercial banks in the establishment of the RRB.
  • A uniform pattern of interest rate structureshould be devised for the rural financial agencies.
  • The RRB must strengthen effective credit administrationby way of credit appraisal, monitoring the progress of loans and their efficient recovery.
  • The RRB may initiate certain new insurable policieslike deposit-linked cattle and other animals insurance policy, crop insurance policy or the life insurance policy for the rural depositors.
  • Coordination between district level development planning and district level credit planningis also required in order to chart out the specific role of the RRB as a development agency of the rural areas.

Conclusion

The RRBs have had a great deal of success in bringing banking services to previously unbanked areas and making institutional credit available to the weaker sections of the population in these areas.

 

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

5. Evaluate various banking reforms introduced in India in recent times. Suggest measures that will ensure long-term viability of the banking sector. (250 words)

Difficulty level: Easy

Reference: Insights on IndiaInsights on India

Why the question:

The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2023 Secure timetable.

Key Demand of the question:

To write about various banking reforms, its successes and limitations and further reforms that are needed for long term viability of baking sector.

Directive word: 

Evaluate – When you are asked to evaluate, you have to pass a sound judgement about the truth of the given statement in the question or the topic based on evidence.  You must appraise the worth of the statement in question. There is scope for forming an opinion here.

Structure of the answer:

Introduction: 

Begin by giving context.

Body:

First, write about the recent reforms in the banking sector – mergers of banks, the Insolvency and Bankruptcy Code, recapitalization of banks, digital payments, the Jan Dhan Yojana, and the licensing of small finance banks.

Next, write about the successes and shortcomings of the above.

Next, suggest reforms that must be taken in order to overcome the above mentioned limitations  – strengthening governance, addressing asset quality issues, ensuring adequate capital levels, investing in technology upgrades, promoting credit growth, and ensuring a robust regulatory framework.

Conclusion:

Conclude with a way forward.

Introduction

The banking system in India defines banking through the Banking Companies Act of 1949. With the potential to become 3rd largest banking industry by 2025 according to some reports, India’s banking and financial sector is expanding rapidly. The Indian banking industry is currently worth more than 1 trillion dollars and banks are now expanding fast as the present Central Government wants to spread the tentacles of the banking industry far and wide.

Body

Evolution of Bank reforms in India

  • The government through the Banking Companies (Acquisition and Transfer of Undertakings) Ordinance, 1969, and nationalizedthe 14 largest commercial banks on 19 July 1969.
  • Thereafter, in 1980, six more banks that were nationalized included Punjab and Sind Bank, Vijaya Bank, Oriental Bank of India, Corporate Bank, Andhra Bank, and New Bank of India.
  • After India liberalized its economy in 1991, then finance minister Dr. Manmohan Singh set up Narasimham Committee – Ito analyze India’s banking sector and recommend reforms.
  • In 1998, Banking Sector Committee(Narasimham Committee – II) was set up to further bring in reforms. The task of the Committee was to review the progress of the implementation of reforms and to suggest a design for further strengthening of the sector.

Banking reforms in the recent past

  • The Indian government has been promoting the digitization of banking services to improve the efficiency and reach of banking services in India. The introduction of mobile banking, internet banking, and digital payment systems has made banking more accessible and convenient for the people of India.
  • Since 2014, the banking sector has witnessed the adoption of the JAM (Jan-Dhan, Aadhaar, and Mobile) trinity, and the issuance of licenses to Payments Banks and Small Finance Banks (SFBs) to achieve last-mile connectivity in the financial inclusion drive.
  • The Reserve Bank of India (RBI) introduced the concept of Payment Banks in 2015. Payment Banks are a new category of banks that aim to provide banking services to the unbanked population of India, by enabling them to open a bank account with a minimum balance of Rs. 0 and providing them with basic banking services.
  • The RBI introduced the concept of Small Finance Banks in 2015 to provide financial services to the unbanked and underserved sections of the society, including small businesses, low-income households, farmers, and micro-enterprises. Small Finance Banks are licensed under Section 22 of the Banking Regulation Act, 1949, and have a minimum paid-up capital of Rs. 100 crore.
  • In October 2015, the Government announced Mission Indradhanushunder which 7 key strategies were proposed to reform public sector banks (PSBs).
  • The Ministry of Finance in its Economic Survey 2015-16suggested four R’s – Recognition, Recapitalization, Resolution, and Reform to address the problem of NPAs.
  • The Insolvency and Bankruptcy Code (IBC) was introduced in 2016 to provide a time-bound and efficient mechanism for resolving insolvency cases in India. The IBC aims to improve the ease of doing business in India by enabling quick and efficient resolution of distressed assets.
  • In 2017, the Indian government announced a plan to recapitalize public sector banks with a capital infusion of Rs. 2.11 lakh crore over a period of two years. This was aimed at strengthening the balance sheets of public sector banks and enabling them to lend more.
  • The government recently announced new banking reforms, involving the establishment of a Development Finance Institution (DFI) for infrastructurecreation of a Bad Bankto address the problem of chronic non-performing assets (NPAs), and privatization of public sector banks (PSBs) to ease its burden in terms of mobilizing additional capital.
  • In 2019, the Indian government announced the merger of 10 public sector banks into four banks, with the aim of creating stronger and more efficient banks.

Way forward

  • The banking sector in India is grappling with a high level of NPAs, which has been a major challenge in recent years. To address this issue, there needs to be a concerted effort to strengthen the resolution framework and the recovery mechanism for stressed assets.

 

  • The Indian banking sector needs to continue to enhance its digital infrastructure to improve the delivery of banking services. This will require investments in technology, data analytics, and cybersecurity to ensure that the banking sector is able to meet the growing needs of customers and stay competitive.
  • Risk management can be more specific and the neo-banks can leverage the technology to further (digital) financial inclusion and finance higher growth of aspirational/new India. In this context, technologies like Blockchaincan be implemented in Indian Banking.
  • Niche Banking caters to the specific and varied requirements of different customers and borrowers.
  • Essentially, these specialised banks would ease the access to finance in areas such as RAM (retail, agriculture, MSMEs), infrastructure financing, wholesale banking (mid and large corporates) and investment banking (merchant banking and financial advisory services).
  • The proposed DFI/niche banks may be established as specialised banks to have access to low-cost public deposits and for better asset-liability management.
  • Further, the existing strong local area banks and urban cooperative banks may be converted into RAM banks and be freed from dual control.
  • Differentiated Banks also may be encouraged to get listed on a recognised stock exchange and adhere to ESG (Environment, Social Responsibility, and Governance) framework to create value for their stakeholders in the long run.
  • The government should tighten the loose ends by allowing them to build diversified loan portfolios, establishing sector-wise regulators, bestowing more powers to deal effectively with wilful defaulters.
  • There is also a need to pave the way for the corporate bond market (shift from bank-led economy) to create a responsive banking system in a dynamic real economy.
  • The Indian banking sector needs to encourage innovation and competition to drive growth and improve the quality of services. This can be done by promoting new entrants, such as fintech companies, and by encouraging collaboration between banks and other financial institutions.
  • The Indian banking sector needs to invest in its human capital to ensure that it has the necessary skills and expertise to meet the changing needs of customers and the evolving regulatory environment. This will require investments in training and development programs, as well as initiatives to attract and retain talent.

Conclusion

                Thus, Banking sector in India has had multiple issues and is undergoing sea changes through timely reforms to further serve the goal of socio-economic development of India.

 


General Studies – 4


 

Topic: Aptitude and foundational values for Civil Service, integrity, impartiality and nonpartisanship, objectivity, dedication to public service, empathy, tolerance and compassion towards the weaker-sections.

6. In your opinion, what are the various manifestations of compassion towards weaker sections? (150 words)

Difficulty level: Easy

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: 

Write about the various manifestations of compassion towards weaker sections

Directive word: 

Structure of the answer:

Introduction: 

Begin by defining compassion.

Body:

Write about the various manifestations – volunteering, donating, mentoring, advocating for policies, providing basic needs, educating, and being inclusive.  Cite examples to substantiate.

Conclusion:

Conclude by writing about role of compassion in creating a equitable society and empower people from weaker sections.

Introduction

Compassion is a deeper level of empathy, demonstrating an actual desire to help the suffering person. It is a unique feeling of sympathy for the suffering of others that involves emotions and empathy towards others, a sense of understanding, and the drive to protect. It is the sympathetic pity and concern for the sufferings or misfortunes of others. It motivates people to go out of their way to help the physical, mental, or emotional pains of another and themselves. Compassion is often regarded as having sensitivity, an emotional aspect to suffering. Qualities of compassion are patience and wisdom; kindness and perseverance; warmth and resolve.

Body

Compassion towards weaker sections has various manifestations depending on the physical and financial strength, willingness to help and other factors.

  • Providing basic needs: Providing food, shelter, clothing, and healthcare to the weaker sections of society is a crucial manifestation of compassion. Many people in weaker sections struggle to meet their basic needs, and providing these can go a long way in helping them lead a dignified life.
  • Education: Providing education to the weaker sections of society can empower them to improve their economic and social status. Access to education can help them acquire skills and knowledge that can lead to better job opportunities and a better quality of life.
  • Healthcare: Access to healthcare is essential for the weaker sections of society, who often struggle with illnesses and diseases due to poor living conditions and lack of basic hygiene. Providing healthcare services and facilities can help prevent and treat diseases and illnesses, improving their overall health and wellbeing.
  • Empathy and understanding: Compassion is not just about providing material resources, but also about empathy and understanding. Listening to the struggles and challenges faced by weaker sections can help us understand their plight and find ways to help them overcome their difficulties.
  • Advocacy: Speaking up for the rights of weaker sections of society can help bring about social and political change. Advocacy can involve raising awareness about issues affecting the weaker sections, lobbying for policies and programs that benefit them, and holding those in power accountable for their actions.
  • Volunteering: Volunteering with organizations and NGOs that work towards supporting the weaker sections of society can be a great way to demonstrate compassion. Volunteering can involve providing time, skills, and resources to support programs and initiatives that improve the lives of those in need.

Conclusion

It takes character and integrity to be the one who is willing to step up and make a difference. To feel sympathy for someone is not enough. We must also be willing to take action. That is why compassion requires courage. Together they are one of the most dynamic combinations in the world. It is impossible to know how much good can come from a single act of compassion.

 

Topic: Attitude: content, structure, function; its influence and relation with thought and behaviour; moral and political attitudes;

7. Political attitudes are formed through a complex and ongoing process that involves various social, cultural, and personal factors. Elaborate. (150 words)

Difficulty level: Tough

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 various factors that lead to the formation of political attitudes.

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: 

Begin by defining political attitudes.

Body:

Write about the various factors shaping political attitudes – family and socialization, education, media and communication, personal experience, and peer groups and social networks.

Conclusion:

Summarise by highlighting the need to develop right political attitudes.

Introduction

Political Attitude means the beliefs and values which underpin the operation of a particular political system. These attitudes were seen as including knowledge and skills about the operation of the political system positive and negative judgments about the system. These attitudes determine how people participate, whom they vote for and which political parties they support.

Body

Elements Influencing Political Attitude

  • Family: Despite family disagreements and generation gaps, children tend to grow up and vote the way their parents do.
    • Families are generally the first, and often the most enduring, influence on young people’s developing political opinions.
    • As people grow older, other influences crisscross the family, and naturally their attitudes tend to diverge from those of their parents.
    • However, the influence still remains.
  • Religion: Religious beliefs often affect the way people vote. Religion is the faith of the people in values and beliefs.
    • Most of the religious leaders regard themselves as teachers and their followers usually attempt socialization of children schooling and socialization converts of all ages through preaching and religious services.
    • In USA the experiences of 1940s generally show that the Jewish voters are more likely to support democrats than are Catholics or Protestants.
    • The recent experiences have shown that thereligious right has supported more conservative candidates (in USA) for public office in more favour of the Republican party than to the Democratic Party.
  • Peer Groups: Attitude formulation takes places due to peer groups. The way the peer groups behave that way only patterns of obedience and disobedience are decided.
    • The influence of peer groups becomes dominant when young people tend to become more independent of the influence of their parents.
    • The peer groups supplement the socialization function of the family and prepare an individual for more specific political roles.
  • School/College:Educational institutions provide individuals the knowledge of the political world and the role they are expected to play in political process of the nation.
    • Schools transmit the values and attitude of the society.
    • They play a crucial role in shaping their attitude about the unwritten rules of the game of politics.
    • College and university education may also bring in new values and help in the formation of radical political attitude.
  • Workplace: Political socialization also depends upon job, the workplace and the nature of employment.
    • Individuals identify themselves with a group and become sensitive to the norms of the group and evaluate its actions according to their opinion of what is good for the group and what it stands for.
    • One of the powerful socializing experiences for a worker or a laborer is participating in collective bargaining.

Impact of economic and psychological factors on political attitude

  • Psychological Factors:Political attitude formulation is a psychological concept as it is concerned with the society in general and with individual in particular.
    • The growth of the society is a social process like the growth of the child.
    • A child develops his attitude towards the authority and obedience as per the obedience pattern at family.
    • According to Easton and Dennis there are four stages in the process of political attitude formulation.
      • A child recognizes authority through particular individual such as parents, policemen and the president of the country.
      • There should be a differences made between private and public authority.
      • The understanding about impersonal political institutions such as national legislature, judiciary and voting behaviour is developed.
      • Distinction between political institution and person engaged in the activities associated with those institutions so that idealized images of particular persons such as the president or the congress.
    • Economic Factors: In most nations, there is no economy without a political system. This is because politics is a constant contest of ideas, and whoever rides into office each election cycle is able to project their ideas onto the economy. Hence, politics shapes the economic conditions of the country and vice versa.
      • Economic self-interest: Political scientists have analysed the role of economic factors on political attitudes of the population. Personal economic” self-interest”is a huge criterion that influences political attitudes.
      • Economic welfare:The class to which they belong has a huge influence on the political affiliations people have. For eg, members of the trade unions and associations are influenced by the “pro-worker” policies and will be aligned with such parties whose ideology matches with the same ( Higher minimum wages).
        • Poor will align towards communist / socialist ideology. He’ll vote for a party promising to get food, fertilizer and kerosene subsidy.
      • Income: The higher middle class and elite section would favour a pro-capitalist party, to ensure their welfare. Eg : This class would prefer lower taxes and more incentives for corporates. Indians during the 1950’s-60’s preferred socialism and with growing income came to support capitalism.

Conclusion

Political attitude describes the way you think or feel about our government and related social and economic issues. It can be said that, both social and economic factors have a major share in determining the political attitudes. The sum total of all the factors determine whether an individual is progressive, liberal, conservative, radical or reactionary.


Join our Official Telegram Channel HERE

Please subscribe to Our podcast channel HERE

Subscribe to our YouTube ChannelHERE

Follow our Twitter Account HERE

Follow our Instagram ID HERE  

Follow us on LinkedIn : HERE