Current Affairs Reverse Engineering – CARE (27-08-2024)
News at a Glance |
| Economy: RBI to launch Unified Lending Interface to benefit borrowers |
| Polity and Governance: Home Minister announces creation of 5 new districts in Ladakh |
| Govt ban 156 combination drugs used to treat fever, pain and allergies |
| International Relations: Australia gives millions of workers ‘right to disconnect’ |
| About Pacific Islands Forum |
RBI to launch Unified Lending Interface to benefit borrowers
Source: The Hindu
UPSC Syllabus Relevance: GS 3 – Economy
Context: Unified Lending Interface (ULI)
Why in News
- The Reserve Bank of India (RBI) Governor, Shaktikanta Das, has announced the forthcoming nationwide launch of the Unified Lending Interface (ULI).
Background
- The Reserve Bank of India (RBI) Governor, Shaktikanta Das, has announced the forthcoming nationwide launch of the Unified Lending Interface (ULI).
- ULI is a technology platform designed to revolutionize the lending landscape in India, much like how the Unified Payments Interface (UPI) transformed the payments ecosystem.
Unified Lending Interface (ULI)
- The ULI is envisioned as a digital public infrastructure aimed at facilitating seamless, efficient, and frictionless credit delivery.
- It addresses a key challenge in the current lending system, where necessary data for credit appraisal is scattered across various entities such as government bodies, banks, and credit information companies.
- These data sets are often in separate systems, which can slow down the lending process and make it more cumbersome, particularly for small and rural borrowers.
- Data Integration: ULI will allow the seamless, consent-based flow of digital information from multiple data service providers to lenders. This includes critical data such as land records, financial data, and credit history.
- Standardized APIs: The platform will use standardized Application Programming Interfaces (APIs), allowing for a ‘plug and play’ approach. This means that lenders can easily integrate with the system, reducing the complexity of multiple technical integrations.
- Efficiency and Speed: By digitizing and centralizing access to both financial and non-financial data, ULI is expected to significantly cut down the time required for credit appraisal. This will make the lending process faster, more scalable, and less costly.
- Focus on Agricultural and MSME Sectors: The ULI is particularly geared towards meeting the unmet demand for credit in sectors like agriculture and Micro, Small, and Medium Enterprises (MSMEs).
Impact and Potential
- ULI is expected to transform the lending landscape in India by making credit more accessible and reducing barriers for borrowers, especially those in smaller and rural areas.
- The RBI Governor emphasized that the ULI could play a crucial role in India’s digital infrastructure, creating a ‘new trinity’ of JAM (Jan Dhan, Aadhaar, and Mobile), UPI, and ULI.
- This trinity will significantly advance India’s digital and financial inclusion goals.
Comparison with Unified Payments Interface (UPI)
Unified Payments Interface (UPI):
- Launched: April 2016 by the National Payments Corporation of India (NPCI).
- Functionality: UPI is a real-time payment system that integrates multiple bank accounts into a single mobile application, facilitating seamless fund transfers, merchant payments, and peer-to-peer transactions.
- Impact: UPI has played a transformative role in the retail payment landscape of India, making digital transactions quick, easy, and widely accessible.
Similarities with ULI:
- Transformative Potential: Just as UPI has made digital payments ubiquitous and accessible, ULI is expected to democratize access to credit by streamlining and simplifying the lending process.
- Digital Public Infrastructure: Both UPI and ULI are part of India’s broader push towards digital public infrastructure, which aims to leverage technology for financial inclusion and economic efficiency.
| CARE MCQ | UPSC PYQ |
Q1. Consider the following statements regarding the Unified Lending Interface (ULI) proposed by the Reserve Bank of India (RBI):
Which of the above statements are correct?
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Q. With reference to digital payments, consider the following statements: (2018)
Which of the statements given above is/are correct? (a) 1 only Ans: (a) |
| Answer 1- B
Explanation:
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Home Minister Amit Shah announces creation of 5 new districts in Ladakh
Source: The Hindu
UPSC Relevance: GS 2- Polity and Governance
Context: Formation of New districts
Why in News
- Union Home Minister Amit Shah announced the creation of five new districts in the Union Territory (UT) of Ladakh.
Objective of the New Districts:
- Improved Governance: The creation of new districts aims to enhance governance by bringing administrative services closer to the people. Ladakh, due to its vast and difficult terrain, has faced challenges in effective governance and service delivery. The new districts are expected to overcome these challenges by decentralizing administrative functions.
- Targeted Development: The establishment of these districts aligns with Prime Minister Narendra Modi’s vision of a developed and prosperous Ladakh. It ensures that government schemes and benefits are more easily accessible to residents, particularly in remote and underserved areas.
Process of District Formation:
- Committee Formation: The Ministry of Home Affairs (MHA) has granted “in-principle approval” for the creation of these districts. A committee will be formed by the Ladakh administration to assess various aspects such as the headquarters, boundaries, structure, and staffing for these districts.
- Final Proposal: After the committee’s report, which is expected within three months, the Ladakh administration will submit a final proposal to the MHA for further action.
Historical Context:
- UT Status of Ladakh: Ladakh became a Union Territory on August 5, 2019, after the bifurcation of the erstwhile state of Jammu and Kashmir and the abrogation of Article 370. This move placed Ladakh under the direct administrative control of the Union Home Ministry.
- Previous Challenges: The region has historically lagged in development due to its challenging geography and perceived neglect by state governments. The creation of new districts is part of a broader effort to address these developmental disparities.
Developmental Initiatives:
- PM Development Package (PMDP): As part of the Prime Minister Development Package, nine projects costing Rs 21,441 crore were earmarked exclusively for Ladakh. These projects aim to address various developmental needs, with some already completed and others in progress.
- Increased Budget Allocation: The budget allocation for Ladakh has been significantly increased to Rs 5,958 crore per year over the last few years to support various developmental initiatives.
- Sindhu Infrastructure Development Corporation (SIDCO): This corporation, with an equity capital of Rs 25 crore, has been set up to promote infrastructure and industrial development in Ladakh.
Support for the Move:
- Political Leaders: Former BJP MP from Ladakh, Jamyang Tsering Namgyal, welcomed the creation of new districts as a fulfillment of the region’s aspirations and a “gift” for the people.
- Government’s Stance: The Modi government sees this move as a crucial step in bringing governance and development closer to the people of Ladakh.
Calls for Greater Political Representation:
- Demand for Assembly: Social activist Sajjad Kargili emphasized that while the creation of new districts is positive, it must be accompanied by the establishment of an Assembly and democratic processes to ensure true representation and governance. Without this, there is a concern that the move might lead to increased bureaucratic layers rather than genuine democratization.
- Effective Functionality: Kargili also pointed out that the new districts need to be fully functional with all necessary powers. Simply creating districts that function like sub-divisions of the past will not achieve the desired impact.
Formation of Districts in India: Polity Perspective
- Constitutional and Legal Basis
- State’s Authority: The formation, alteration, or abolition of districts is primarily a state subject under the Indian Constitution. According to Entry 5 of the State List under the Seventh Schedule, the power to create or reorganize districts lies with the respective state governments or Union Territories (UT) administrations.
- Legislation: States typically enact laws or issue executive orders under their legislative competence to create or reorganize districts. There is no specific central legislation governing the creation of districts across the country.
- Union Territories
- Union Government’s Role: In Union Territories, the power to create, alter, or abolish districts rests with the central government, usually exercised through the Ministry of Home Affairs (MHA). The central government’s decision is often based on recommendations from the UT administration.
- Process in Union Territories: The Union Home Ministry typically issues notifications after receiving proposals from the respective UT administration. The process may involve the formation of committees to assess the implications, such as defining boundaries, determining headquarters, and assessing administrative needs.
| CARE MCQ | UPSC PYQ |
Q2. With reference to the formation of new districts in India, consider the following statements:
Which of the statements given above is/are correct? A. 1 and 3 only B. 2 and 4 only C. 3 and 4 only D. 2, 3, and 4 only |
Q. Consider the following statements: 2012 1. Union Territories are not represented in the Rajya Sabha. 2. It is within the purview of the Chief Election Commissioner to adjudicate the election disputes. 3. According to the Constitution of India, the Parliament consists of the Lok Sabha and the Rajya Sabha only. Which of the statements given above is/are correct?
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| Answer 2– D
Explanation:
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Australia gives millions of workers ‘right to disconnect’
Source: The Hindu
UPSC Relevance: GS-2 Polity and Governance
Context: Right To Disconnect
Why in News
- Australia gave millions of workers the legal right to “disconnect” allowing them to ignore unreasonable out-of-hours contact from employers, to the distress of big industry.
Overview
- Australia recently implemented a new law granting millions of workers the legal “right to disconnect,” which allows them to ignore unreasonable work-related communication outside their official working hours.
- This law, which took effect on August 26, 2024, for medium-sized and large companies, and will extend to smaller companies by August 26, 2025, aligns with similar legislation in European and Latin American countries.
Right to Disconnect:
- Employees can legally refuse to monitor, read, or respond to work-related communication from their employers outside of their designated work hours unless such refusal is deemed unreasonable by a tribunal or court.
- The law aims to protect workers from the pressure of being constantly available, which can erode their work-life balance and mental health.
Reasonableness Clause:
- The law includes a provision that considers whether the refusal to respond to work-related communication outside of work hours is reasonable or not.
- Factors influencing this decision include the reason for the contact, the nature of the employee’s role, and whether the employee is compensated for working extra hours or being on call.
Worker Protections:
- The law was strongly supported by unions, which argue that it helps workers reclaim their personal time and reduces stress associated with being “always on” due to digital communication tools.
- Australian Prime Minister Anthony Albanese highlighted the importance of this law for mental health, emphasizing the need for workers to disconnect from work to focus on their personal lives.
Industry Concerns
- Despite the positive reception from workers and unions, the law faced criticism from industry groups, who argued that the legislation was rushed and confusing.
- They expressed concerns about uncertainty in situations like offering or accepting extra shifts out of normal working hours, which could complicate both employee and employer interactions.
Comparisons to International Practices
- Similar laws have been implemented in countries like France, which introduced the right to disconnect in 2017 to combat the “always on” culture driven by smartphones and digital devices.
Future Implications
- This law represents a significant shift in labor rights in Australia and reflects a growing global recognition of the importance of work-life balance in the digital age.
- Its implementation will likely be monitored closely, with potential adjustments based on the experiences and feedback from both employers and employees.
| CARE MCQ | UPSC PYQ |
Q3. Consider the following statements regarding the recent “right to disconnect” law implemented in Australia:
Which of the statements given above is/are correct? A) 1 and 2 only |
Q. ‘Right to Privacy’ is protected under which Article of the Constitution of India? (2021)
(a) Article 15 (b) Article 19 (c) Article 21 (d) Article 29 Ans: (c) |
| Answer 3 B
Explanation
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About Pacific Islands Forum
Source: The Hindustan Times
UPSC Syllabus Relevance: GS 2- International Relations
Context: Pacific Islands Forum
Why in News
- The Pacific Islands Forum (PIF) is a significant regional organization that addresses various challenges faced by Pacific Island nations.
Natural Disasters and Environmental Vulnerabilities:
- The forum’s opening was marked by torrential rain and a magnitude 6.9 earthquake, emphasizing the environmental and natural vulnerabilities faced by Pacific Island nations.
- Many member countries are struggling with climate change, rising sea levels, and other environmental threats.
Geopolitical Tensions:
- The summit underscored the geopolitical competition in the South Pacific, particularly between major powers like China and the United States.
- The presence of over 1,500 delegates from more than 40 countries, including substantial delegations from China and the U.S., reflects the region’s increasing geopolitical significance.
Historical and Structural Context:
- Established in 1971, the PIF originally focused on regional cooperation among its 18 member states.
- Over recent years, the forum has gained global attention due to increased geopolitical interest, especially from China, which has expanded its diplomatic and security presence in the Pacific.
Forum’s Focus
- The primary concerns of Pacific Island leaders include climate change, rising seas, and environmental degradation. They advocate for urgent action on these issues.
- Other issues discussed include the legacy of nuclear testing, economic challenges, and regional security.
Regional and Global Dynamics
- The forum’s recent expansion and increased involvement of global powers reflect a shift from a more localized focus to broader international engagement.
- A tiered system for dialogue partners is being considered to better reflect the genuine interest and involvement of external nations in the Pacific region.
Challenges and Local Concerns:
- The forum’s discussions also covered pressing local issues such as health, education, and the ongoing unrest in New Caledonia.
- Leaders emphasized the need to prioritize regional concerns over external geopolitical interests, advocating for a “Pacific way” of consensus-based politics.
UN Secretary-General’s Support:
- António Guterres highlighted the importance of addressing environmental issues and commended Pacific leaders for their climate emergency declarations.
Future Outlook:
- The growing global interest in the Pacific region is seen as an opportunity and a challenge. Leaders are pragmatic about the need to secure long-term benefits while navigating external pressures.
| CARE MCQ | UPSC PYQ |
Q4. Which of the following statements accurately describe the recent developments at the Pacific Islands Forum summit held in Nuku’alofa, Tonga?
Select the correct statements: A) 1 and 2 only |
Q. In which one of the following groups are all the four countries members of G20? (2020)
(a) Argentina, Mexico, South Africa and Turkey (b) Australia, Canada, Malaysia and New Zealand (c) Brazil, Iran, Saudi Arabia and Vietnam (d) Indonesia, Japan, Singapore and South Korea Ans: (a)
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| Answer 4 D
Explanation
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Govt ban 156 combination drugs used to treat fever, pain and allergies
Source: Indian Express
https://indianexpress.com/article/health-wellness/govt-ban-drugs-fever-pain-allergies-9531681/
UPSC Syllabus Relevance: GS 2- Polity and Governance, GS 3– Science and Technology
Context: Overview of the Recent Ban on Fixed Dose Combination Medicines
Why in news
- The Indian Health Ministry has recently imposed a ban on 156 fixed dose combination (FDC) medicines.
What Are Fixed Dose Combinations?
- Medicines that contain two or more active ingredients combined into a single pill, capsule, or injection.
- Purpose: To simplify treatment regimens for patients by reducing the number of pills they need to take for conditions like tuberculosis or diabetes.
Reasons for the Ban
- Ineffectiveness and Irrational Combinations: The Health Ministry deemed many of these combinations as “irrational” because they either contained ingredients that do not work well together or did not provide any additional therapeutic benefit.
- Regulatory Issues: Many of these FDCs were approved by state licensing authorities without adequate trials for their specific combinations. The new drug regulations from 2019 state that FDCs should be treated as new drugs and require approval from the central drug regulator, which has reduced the number of irrational combinations.
- Health Risks: Some FDCs may deliver ingredients that patients do not need or that might interact negatively with other medications.
Examples of Banned Drugs
- 1. Commonly Used Medicines:
- Fever Medicine: Cheston Cold
- Pain Medicine: Foracet
- 2. Combinations in Specific Categories:
- Anti-allergic Medicines: Levocetirizine with nasal decongestant, syrups for mucus breakdown, and paracetamol.
- Gastrointestinal Enzymes: Combinations used for treating gastrointestinal issues.
- Skin Conditions: Combinations such as calamine lotion with aloe and other substances.
- Migraine Medicines: Combination of migraine medication with anti-nausea drugs.
- Other Combinations: Mefenamic acid with tranexamic acid, and sildenafil with a vasodilator.
Impact on the Market
Immediate Actions:
- Manufacturers: The notification mandates that companies immediately cease manufacturing, stocking, and selling these banned medicines.
Transition Period:
- Existing Stock: Companies may legally continue selling the stock already in the market, as they often challenge such bans in court, which may allow them to sell off existing inventory.
| CARE MCQ | UPSC PYQ |
Q5. The recent ban on certain fixed dose combination (FDC) medicines by the Indian Health Ministry was driven by which of the following reasons?
Select the correct statements: a) 1 and 2 only |
Q. With reference to polyethylene terephthalate, the use of which is so widespread in our daily lives, consider the following statements: (2022)
Which of the statements given above are correct?
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| Answer 5 D
Explanation
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