Nothing Special   »   [go: up one dir, main page]

Jan 18 2025

The Delhi high court has recently censured the state government for its failure to place 14 reports of the Comptroller and Auditor General (CAG) before the legislative assembly. 

  • The government is obligated to present these reports before the assembly for discussion. This ensures public funds are utilized effectively and transparently.

About the office of Comptroller and Auditor General (CAG)

Comptroller and Auditor General (CAG) is a constitutional authority responsible for auditing and reporting on the financial operations of the government at the Union and State levels. 

  • Established under Article 148 of the Indian Constitution, the CAG plays a critical role in ensuring transparency, accountability, and financial discipline in governance.

Enroll now for UPSC Online Course

Genesis of the Institution of Comptroller and Auditor General (CAG)

  • Colonial Origins: The institution of the CAG in India originated during British rule, evolving from the office of the Accountant General, established in 1858 to audit colonial finances under the British East India Company.
  • Pre-Independence Developments: The position of Auditor General of India was formalized under the Government of India Act, 1919, and later expanded under the Government of India Act, 1935, to ensure financial accountability in British India.
  • Post-Independence Establishment: After India gained independence, the Comptroller and Auditor General of India was enshrined as a constitutional authority under Article 148 of the Constitution in 1950. Narahari Rao became the first CAG of independent India.
  • Significance in the Constitution: The CAG was established as an independent entity to audit the accounts of the Union and States, ensuring financial transparency, and serving as the “guardian of the public purse” in India’s parliamentary democracy.

Key Functions of Comptroller and Auditor General (CAG)

  • Audit of Government Accounts: Audits the receipts and expenditure of the Union and State governments, including public sector undertakings (PSUs).
  • Reporting to the Legislature: Submits audit reports to the President (for Union accounts) or the Governor (for State accounts), which are then tabled in Parliament or State Legislatures.
  • Audit of Public Enterprises: Examines the financial performance of government-owned companies.
  • Custodian of the Consolidated Fund: Ensures that withdrawals from the Consolidated Fund of India or States are made only with proper legislative authorization.
  • Special Audits: Conducts special audits on the request of the President or the Governor, especially in cases of irregularities.

How is CAG in India Different from the CAG in Britain?

Aspect CAG in India CAG in Britain
Status Constitutional authority under Article 148. Appointed as part of the executive branch.
Role Independent auditor of public accounts and spending. Auditor and consultant to Parliament on public spending.
Reporting Reports directly to the President or Governors, who table them in Parliament or State Legislatures. Reports to the UK Parliament through the Public Accounts Committee.
Scope of Audit Audits all receipts, expenditures, and accounts of the Union, States, and Public Sector Enterprises. Primarily focuses on central government accounts, public corporations, and local bodies.
Tenure Fixed tenure of 6 years or until the age of 65, whichever is earlier. Tenure is not constitutionally fixed, depending on contractual terms.

Check Out UPSC CSE Books From PW Store

Constitutional Provisions Related to Comptroller and Auditor General (CAG)

  • Article 148: Establishes the CAG and defines its independence.
  • Article 149: Specifies the duties and powers of the CAG.
  • Article 150: Mandates the CAG to prescribe how accounts of the Union and States shall be kept.
  • Article 151: Requires CAG reports to be submitted to the President or Governor, who will place them before the legislature.
  • Third Schedule of Constitution: It includes the format of the oath that the CAG must take before assuming office. The oath emphasizes allegiance to the Constitution, faithful discharge of duties, and upholding the sovereignty and integrity of India.

Independence of Comptroller and Auditor General (CAG)

  • Appointed by the President of India.
  • Holds office for 6 years or until the age of 65, whichever is earlier.
  • Removal is possible only through impeachment, similar to a Supreme Court judge.

Significant Contributions of Comptroller and Auditor General (CAG)

  • 2G Spectrum Scam: Highlighted irregularities in the allocation of telecom licenses, leading to Supreme Court intervention.
  • Coal Block Allocation: Exposed losses due to discretionary coal block allocations.
  • Bharatmala Project (2023): Flagged delays and cost overruns in infrastructure development.
  • Performance Audit of Ayushman Bharat (2023): Highlighted issues in healthcare delivery under India’s flagship health insurance scheme, including irregularities in beneficiary verification and delayed payments to hospitals.
  • Public Distribution System (PDS) Audit: Identified large-scale inefficiencies in the distribution of food grains under the PDS, including diversion and leakage.
    • These recommendations led to digitization of ration cards and better monitoring mechanisms.

Vinod Rai, the former Comptroller and Auditor General (CAG) of India, suggested several reforms to strengthen the institution and enhance its effectiveness in ensuring transparency and accountability. 

Key reforms include:

  • Strengthening Financial Autonomy:  Advocated for greater independence in financial matters to ensure the CAG operates without external pressures, safeguarding its role as an unbiased auditor.
  • Performance Audits: Emphasized the need for performance-based audits instead of just financial compliance, focusing on the outcomes and effectiveness of government schemes and policies.
  • Capacity Building: Suggested continuous training and upskilling of CAG staff to handle audits of complex and modern sectors like IT, telecom, and environmental policies.
  • Timely Reporting: Proposed mechanisms to expedite audit report submissions, ensuring their relevance and impact during policy-making and parliamentary discussions.
  • Use of Technology:  Highlighted the importance of adopting advanced data analytics, AI, and IT tools to improve the accuracy and scope of audits in a rapidly digitizing economy.

These reforms aim to make the CAG more dynamic, proactive, and aligned with the challenges of modern governance.

Check Out UPSC NCERT Textbooks From PW Store

Challenges Faced

  • Shrinking Parliamentary Time: The number of days Parliament meets has reduced over decades, leaving less time to debate critical reports like those from the CAG.
    • Example: In the 2023 Monsoon Session, Parliament functioned for just 17 days, limiting discussion on significant issues.
  • Politicization of Reports: CAG findings are often dismissed as politically motivated, especially when they highlight irregularities in flagship government schemes.
    • Example: Debates on the CAG’s findings on coal block allocations (2012) became partisan, overshadowing substantive discussions.
  • Public Apathy and Limited Awareness: Citizens often remain unaware of the significance of CAG reports, reducing pressure on lawmakers to act on their findings.
  • Resource Constraints: The CAG’s limited resources and reliance on outdated methodologies hinder comprehensive audits in emerging areas like cybersecurity and environmental governance.
  • Declining Staff Availability:
    • As of 2021-22, the IA&AD had a staff strength of 41,675, a steady decline from the peak of 48,253 in 2013-14. 
    • The number of IA&AS officers employed came down to 553 in 2021-22 from 789 in 2014-15. 
    • The strength of the audit and accounting staff reduced from over 26,000 in 2013-14 to 20,320 in 2021-22. 
  • Lack of Follow-Up Mechanisms: Many recommendations from the Public Accounts Committee (PAC) and CAG reports remain unimplemented due to weak enforcement mechanisms.
    • Data: 60% of CAG recommendations (2017-2021) are yet to see effective follow-up action.
  • No ex-ante auditing powers: 
    • Unlike many other countries like Japan, New Zealand, Australia and France, the CAG in India mainly performs the function of ex-post auditing. 

Comptroller and Auditor General

Way Forward

  • Mandatory Parliamentary Debates: Establish protocols for mandatory discussion of key CAG reports in Parliament and state legislatures.
    • Example: The United Kingdom’s Public Accounts Committee (PAC) ensures parliamentary discussions for every major audit finding.
  • Modernization of CAG: Equip the CAG with tools for auditing emerging areas like artificial intelligence, climate finance, and data governance.
    • Example: Canada’s Auditor General uses AI-based tools for auditing government digital systems.
  • Enhanced Public Engagement: Make CAG reports more accessible through simplified summaries and outreach via social media and public forums.
    • Example: The Australian National Audit Office (ANAO) publishes easy-to-read summaries to engage citizens.
  • Collaboration with Civil Society and Media: Collaborate with think tanks, NGOs, and media to analyze and disseminate CAG findings for greater public awareness and accountability.
    • Example: NITI Aayog
  • Strengthening the Public Accounts Committee (PAC): Empower the PAC to enforce accountability by setting strict deadlines for action on audit recommendations.
    • Data: The PAC handled 103 reports in 2022 but faced delays in follow-up implementation.

Relationship between Comptroller And Auditor General of India (CAG) and Public Accounts Committee (PAC):

  • CAG’s Role in Auditing: The CAG conducts audits of government receipts, expenditures, and public undertakings and submits reports to Parliament, forming the basis of the Public Accounts Committee’s (PAC) discussions.
  • PAC’s Role in Examination: The PAC examines CAG reports to ensure accountability of public funds, highlighting financial irregularities and inefficiencies in government spending.
  • Mutual Dependence: While the CAG provides independent audit findings, the PAC ensures their parliamentary scrutiny, strengthening fiscal oversight.
    • Case Example: 
      • The PAC’s investigation into the 2G spectrum case (2010) was based on the CAG report, which estimated a loss of ₹1.76 lakh crore to the exchequer.
  • Data Accuracy and symbiotic relations: The PAC relies heavily on data of CAG’s detailed observations to ensure transparent governance, exemplified by the PAC’s review of CAG audits on defense spending, ensuring funds are used effectively.

Enroll now for UPSC Online Classes

Conclusion

CAG reports are essential tools for promoting transparency, accountability, and efficient governance. However, challenges like insufficient debate, lack of follow-up mechanisms, and public apathy hinder their impact. By drawing on global best practices and modernizing India’s audit the government can strengthen democratic accountability and ensure better utilization of public resources. 

ISRO successfully conducted the Space Docking Experiment (SPADEX) to demonstrate in-orbit docking technology, a critical capability for refueling, satellite servicing, and future space station missions.

About Indian Space Sector

  • Current Value: India’s space industry is valued at $8 billion, contributing 2% to the global space economy.
  • Government Spending: Annual spending on space programs is approximately $2 billion.
  • Satellite Launches and Revenue: Since 1999, India has launched 381 satellites for 34 countries, generating $279 million in revenues.
  • Global Position: The Indian Space Research Organisation (ISRO) is the sixth-largest national space agency in the world.
  • Future Potential: According to IN-SPACe, India’s space economy could grow to ₹35,200 crore ($44 billion) by 2033, capturing 8% of the global share.

Enroll now for UPSC Online Course

Recent Achievements of ISRO (Indian Space Research Organisation)

  • Chandrayaan-3 Mission: ISRO successfully landed the Vikram Lander near the Moon’s south pole, making India the first country to achieve this feat. 
    • The mission also deployed the Pragyan rover, which conducted on-site experiments, including the detection of sulfur and other elements.
  • ISRO’s Space Farming Trial: ISRO tested the growth of lobia (cowpea) seeds in space as part of its bio-regenerative life support system experiments, paving the way for sustainable food production in space missions.
  • Aditya-L1 Mission: India’s first solar observatory, Aditya-L1, was launched to study the Sun’s atmosphere, including the corona, solar winds, and magnetic storms. It marked a significant step toward space-based solar research.
  • XPoSat: It is the second such space-based observatory after NASA’s Imaging X-ray Polarimetry Explorer (IPEX), launched in 2021. The two instruments on board XPoSat, called XSPECT and POLIX, began operating after launch.
  • PSLV-C57/Orbital Launch of Singapore’s DS-SAR Satellite: The PSLV-C57 mission launched the DS-SAR satellite and six co-passenger satellites for Singapore, reaffirming ISRO’s reputation for cost-effective commercial satellite launches.
  • Gaganyaan Preparations: ISRO completed critical tests for the Gaganyaan Human Spaceflight Programme, including a crew escape system test. The mission is scheduled for 2025, aiming to make India the fourth country to send humans into space.
  • LVM3-M3 OneWeb India-2 Mission: ISRO launched 36 OneWeb satellites into Low Earth Orbit, completing OneWeb’s first-generation global satellite constellation. This further solidified ISRO’s position in the global satellite launch market.

Role of Private Sector in Space

  • Satellite Manufacturing and Launches: Skyroot’s Vikram-S became the first privately built rocket launched in India in November 2022.
  • Space-Based Applications: Startups like Pixxel are using satellites for earth imaging and data analytics, enabling services in agriculture, disaster management, and urban planning.
  • Collaboration with ISRO: L&T and HAL partnered with ISRO for the Gaganyaan mission.
  • Driving Innovation: Agnikul Cosmos is working on 3D-printed rocket engines to revolutionize launch systems.

Potential of India’s Space Sector

  • Expanding Market Size: The global space economy is estimated to reach $1 trillion by 2040, and India’s share, currently at just 2%, has significant growth potential.
  • Satellite Launch Services: PSLV has launched over 400 foreign satellites from 36 countries, earning ISRO substantial revenue.
    • Over 10 years, ISRO has had 34 launches, successfully sending up 121 satellites, 75 of them foreign: 18 (24%) were from the USA, 11 (15%) Canadian, 8 (11%) each from Singapore and Germany, and 6 (8%) from the UK.
  • Commercial Space Ventures: With the advent of private players like Skyroot Aerospace and Pixxel, India is diversifying into small satellite launches, space-based imaging, and data analytics.
  • Focus on Space Exploration: Chandrayaan-3’s success as the first mission to soft-land near the lunar south pole.
  • Global Partnerships: ISRO-NASA’s NISAR satellite will study climate change and natural disasters.

Check Out UPSC NCERT Textbooks From PW Store

ISRO’s Space Farming Trial (2023)

  • ISRO conducted a groundbreaking experiment by testing the growth of lobia (cowpea) seeds in space. 
  • This trial was part of its efforts to develop a Bio-Regenerative Life Support System (BLSS)
  • It focuses on sustainable food production for long-duration space missions. 
  • The experiment holds promise for providing astronauts with fresh food during future interplanetary missions, reducing reliance on pre-packaged food and enhancing mission self-sufficiency. 
  • This initiative aligns with global efforts to advance space agriculture
    • Example: NASA’s Veggie program and China’s space farming experiments.

Challenges Faced by the Indian Space Sector

  • Budget Constraints: Despite global recognition, ISRO operates on a relatively small budget compared to agencies like NASA.
    • Example: NASA’s 2023 budget was $25 billion, while ISRO’s was approximately $1.6 billion.
  • Technological Gaps: Limited expertise in heavy-lift rockets and advanced reusable technologies delays ambitious missions.
  • Space Debris Management: Increasing satellite launches add to space debris, posing long-term challenges for orbital sustainability.
  • Brain Drain: Many top scientists seek better opportunities abroad due to limited funding and incentives in India.
  • Geopolitical Constraints: Global collaborations face challenges due to international sanctions and technology denial regimes like the MTCR (Missile Technology Control Regime).

Government Initiatives for Space and ISRO

  • Formation of IN-SPACe: The Indian National Space Promotion and Authorization Center (IN-SPACe) facilitates private sector participation in space activities, ensuring policy and regulatory support.
  • Indian Space Policy 2023: The policy defines roles for ISRO, IN-SPACe, and private players, focusing on commercialization and R&D, with ISRO focusing on strategic missions.
  • Budget Allocations: India allocated about Rs. 12000 crore to the Department of Space in Budget 2023-24
  • Launch of NSIL (NewSpace India Limited): NSIL commercializes ISRO’s technologies and satellite launches, expanding India’s footprint in the global space economy.
  • Focus on Education and Innovation: Programs like Young Scientist Programme (YUVIKA) and collaboration with IITs and IISc promote space education and R&D in India.

Enroll now for UPSC Online Classes

Way Forward for Indian Space Sector

  • Increased Budget Allocation: Prioritize space research funding to match the global average of space program investments.
  • Collaborative Innovation: Partner with private players under the Indian National Space Promotion and Authorization Center (IN-SPACe) to enhance technological capabilities.
  • Indigenous Innovation: Invest in heavy-lift rocket technologies like the GSLV Mk-III and advanced propulsion systems.
  • Focus on Human Resources: Introduce attractive incentives, global exposure, and skill-building programs to retain top talent.
    • Example: Skill India Mission (for space activities)
  • Space Debris Mitigation: Develop space debris mitigation technologies like satellite de-orbiting systems and participate in global efforts for orbital sustainability.

Conclusion

ISRO’s recent achievements, including Chandrayaan-3, Aditya-L1, SPADEX, and space farming trials, showcase India’s growing capability in space exploration. By addressing challenges through increased funding, technological innovation, and global collaboration, ISRO can further enhance its contribution to scientific discovery, economic growth, and global sustainability.

Additional Reading: Spadex Mission

A transient “ghost island” which was born from a mud volcano eruption in the Caspian Sea has been reported in the news. This island emerged in early 2023 and receded into the sea by the end of 2024.

Ghost Island

About Ghost Island

A “ghost island” refers to a temporary landmass that appears and disappears due to natural geological or environmental phenomena, such as mud volcano eruptions, sediment accumulation, or tidal and erosion processes.

  • In Caspian Sea, the “ghost island” was created by the eruption of the Kumani Bank mud volcano
  • The island emerged in early 2023, and quickly eroded away by the end of 2024.

About Mud Volcano

A geological phenomenon where gases, liquids, and sediments erupt to the surface, creating temporary landforms. Often found in tectonic zones, they can expel methane and mud, sometimes causing fiery eruptions. They often form in tectonically active regions with high subsurface pressures.

  • Example: Azerbaijan, home to over 300 mud volcanoes, including the Kumani Bank.
  • Hazards: Flammable gas emissions, potential for large sediment expulsion, and even fiery eruptions.

Enroll now for UPSC Online Classes

About Caspian Sea

The Caspian Sea is the world’s largest land locked reservoir, covering an area of 392,600 km2.

Countries Bordering the Caspian Sea

  • Azerbaijan
  • Iran
  • Kazakhstan
  • Russia
  • Turkmenistan

Major Rivers: The Caspian Sea receives water primarily from three major rivers:

  • Volga River
  • Ural River
  • Terek River

The devastating wildfires in Los Angeles were driven by rare meteorological conditions known as ‘hydroclimate whiplash’ and exacerbated by climate change and human activities.

About Hydroclimate Whiplash

  • Definition: Refers to rapid alternation between extremely wet and dangerously dry weather conditions in a region.
  • Contributing Mechanism
    • As the atmosphere warms, the amount of water vapor it can hold increases, and the deficit of water vapor in the atmosphere also rises exponentially.
    • Consequently, a warmer atmosphere can retain significantly more water for longer periods before releasing it as precipitation.
    • This relationship between global warming and the atmosphere results in extended dry spells followed by more intense rainfall when precipitation finally occurs.

Check Out UPSC Modules From PW Store

Impacts of Hydroclimate Whiplash

  • Increased Droughts and Floods: Prolonged extremes strain ecosystems and water availability.
  • Wildfire Fuel: Wet periods encourage vegetation growth, which dries out during subsequent droughts, creating fuel for wildfires.
  • Human Health Risks:
    • Wildfire smoke exacerbates respiratory and cardiovascular diseases.
    • Flooding promotes waterborne illnesses like cholera and leptospirosis.
  • Global Trends: Hydroclimate whiplash events have increased by 31–66% in three-month periods (sub-seasonal) and 8–31% in 12-month periods (inter-annual) since the mid-20th century.

Other Causes of Wildfires in California

  • Santa Ana Winds: High-pressure winds from the Great Basin compress and heat as they descend, reducing humidity and drying vegetation.
  • Anthropogenic Activities: Illegal campfires, fireworks, and urban encroachment into forested areas increase fire risks.
  • Climate Change: Rising global temperatures lead to warmer springs and summers, intensifying dry seasons and vegetation stress.

Recently, the Commerce Ministry has requested the Finance Ministry to extend the ₹3,000 crore Interest Equalisation Scheme, prioritizing MSMEs involved in exports.

About Interest Equalisation Scheme (IES)

  • Introduction:
    • Launched in 2015 to provide financial support to exporters through subsidized export credit.
    • Offers pre- and post-shipment export credit to exporters in Indian rupees.
    • Initially valid for five years, the scheme has been extended multiple times.
  • Implementing Agency:
    • Implemented by the Reserve Bank of India (RBI) through Public and Non-Public Sector banks that provide pre- and post-shipment credit to exporters.
    • Jointly monitored by the Directorate General of Foreign Trade (DGFT) and the RBI through a consultative mechanism.

Enroll now for UPSC Online Classes

Ministry of Micro, Small & Medium Enterprises

  • Formation: Established in 2007 through the merger of the Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries.
  • Governance: Operates under the Micro, Small, and Medium Enterprises Development Act, 2006, which provides a legal framework for MSME development.
  • Mandate: Addresses issues affecting MSMEs, defines the concept of “enterprise,” and empowers the Central Government to improve their competitiveness.
  • Functions: Implements policies, programs, and schemes to promote and support MSME growth across sectors.
  • Key Initiatives: Provides financial aid, technology support, and skill development programs for MSMEs to enhance their contribution to India’s GDP and exports.

  • Coverage:
    • Initially covered non-MSME exporters in 410 identified tariff lines.
    • Extended to all exporters from the MSME sector.
  • Subsidy Rate:
    • 2% interest equalization for merchant and manufacturer exporters of 410 identified tariff lines.
    • 3% interest equalization for all MSME manufacturer exporters.
  • Mechanism:
    • Export credit is provided by banks at a subsidized interest rate.
    • The government compensates banks for the reduced interest charged to beneficiaries.
    • Banks charging an average rate above Repo + 4% are excluded from the scheme.

What is MSME?

  • Definition: MSME stands for Micro, Small, and Medium Enterprises, which are businesses involved in producing, processing, and preserving goods and commodities.
  • Classification: Classified based on investment in plant and machinery or equipment and annual turnover.

Classification of MSMEs as per Indian Government

Type of Enterprise Investment in Plant and Machinery/Equipment Annual Turnover
Micro Up to ₹1 crore Up to ₹5 crore
Small Up to ₹10 crore Up to ₹50 crore
Medium Up to ₹50 crore Up to ₹250 crore

Check Out UPSC NCERT Textbooks From PW Store

Need for Interest Equalisation Scheme (IES) for MSMEs

  • Support Export Growth: Helps MSMEs access affordable credit, ensuring competitiveness in global markets.
  • High Contribution to Exports: MSMEs contribute approximately 45% to India’s total exports, highlighting the importance of the sector.
  • Inflation and Logistics Challenges: Rising inflation and logistical issues, such as the Red Sea crisis, have increased export costs.
  • Longer Credit Durations: Buyers are demanding extended credit periods (120–150 days), raising the cost of financing.
  • Liquidity Challenges: High inflation and slower inventory off-take create financial stress for MSMEs.
  • Wafer-Thin Margins: Interest subvention of 3% enables MSMEs to remain competitive in price-sensitive markets.
  • Addressing High Credit Costs: IES mitigates the impact of India’s relatively higher credit costs compared to global competitors.

The Reserve Bank of India (RBI) has announced the list of Non-Banking Financial Companies (NBFCs) in the Upper Layer (UL) under Scale Based Regulation (SBR) for the year 2024-25

Highlights of Recent RBI Release

The NBFC Upper Layer (UL) list for 2024-25 includes Tata Sons Private Ltd, Bajaj Finance Ltd, LIC Housing Finance Ltd, and Aditya Birla Finance Ltd, among others.

Enroll now for UPSC Online Course

About NBFC Regulation

  • Regulatory Powers: RBI regulates NBFCs under the RBI Act, 1934, with powers to register, inspect, and supervise NBFCs meeting the 50-50 principal business criteria.
  • 50-50 Principal Business Criteria: Financial activity constitutes over 50% of total assets and gross income.
  • Requirements for NBFC Registration
    • Must be a company registered under Section 3 of the Companies Act, 1956.
    • Minimum Net Owned Fund (NOF) of ₹200 lakh.

About Scale-Based Regulation (SBR) Framework

  • The Scale-Based Regulation (SBR) framework, introduced by the Reserve Bank of India  in 2021, is a regulatory framework designed to classify Non-Banking Financial Companies (NBFCs) based on their asset size and scoring criteria.
  • The aim is to strengthen risk management, apply proportional regulation, and address systemic risks in the NBFC sector.
  • Objectives of the SBR Framework
    • Mitigation of Systemic Risks: To reduce the impact of financial contagion and safeguard the overall financial ecosystem.
    • Proportional Regulation: To ensure that regulatory intensity corresponds to the scale and complexity of NBFC operations.
    • Enhanced Risk Management: To improve the operational resilience and governance standards of NBFCs.
  • NBFCCategorization of NBFCs
    • Base Layer (NBFC-BL): Includes smaller NBFCs with limited risk to the system.
    • Middle Layer (NBFC-ML): Comprises larger entities with moderate systemic importance.
    • Upper Layer (NBFC-UL): High-risk NBFCs based on scoring methodology and systemic importance.
    • Top Layer (NBFC-TL): Rarely occupied, for entities posing exceptional risks.
  • Features of Enhanced Regulations
    • NBFC-ULs are subjected to stricter regulatory requirements for at least five years.
    • This includes increased compliance, monitoring, and governance norms

Check Out UPSC CSE Books From PW Store

Difference Between Banks and NBFCs

Parameter Banks NBFCs
Demand Deposits Can accept demand deposits Cannot accept demand deposits
Payment and Settlement System (PSS) Part of PSS; can issue cheques Not part of PSS; cannot issue cheques
Deposit Insurance Deposits insured by Deposit Insurance and Credit Guarantee Corporation No deposit insurance facility available
Reserve Ratios (CRR, SLR) Must maintain Reserve Ratios prescribed by RBI Not required to maintain Reserve Ratios
Regulation Act Regulated under Banking Regulation Act, 1949 Regulated under Companies Act, 1956
Foreign Direct Investment (FDI) Up to 74% FDI allowed for private sector banks (49% under automatic route) 100% FDI allowed

Recent research challenges the conventional understanding that iron deficiency is the primary cause of anaemia in India, suggesting a need for diversified policy interventions to address the issue effectively.

About Anaemia

Anaemia is a medical condition where the number of red blood cells (RBCs) or the haemoglobin levels in the blood are below normal, leading to reduced oxygen supply to the body’s tissues.

  • Key Symptoms of Anaemia: Fatigue, weakness, pale skin, and shortness of breath.
  • Types of Anaemia:
    • Iron-Deficiency Anaemia: Caused by insufficient iron levels needed to produce haemoglobin.
      • Commonly due to poor diet, blood loss, or absorption issues.
    • Vitamin-Deficiency Anaemia: Caused by a lack of Vitamin B12 or folate, essential for RBC production.
    • Aplastic Anaemia: Occurs when the bone marrow fails to produce enough RBCs.
    • Sickle Cell Anaemia: A genetic condition where RBCs are abnormally shaped, leading to blockages and reduced oxygen flow.
    • Hemolytic Anaemia: Results from the premature destruction of RBCs.
    • Thalassemia: A genetic disorder causing abnormal haemoglobin production.
    • Anaemia of Chronic Disease: Associated with long-term illnesses like cancer or kidney disease.

Enroll now for UPSC Online Course

Status of Anaemia in India

  • Prevalence Trends:
    • Anaemia prevalence among women of reproductive age increased from 53.2% (NFHS-4) to 57.2% (NFHS-5).
    • In children, the prevalence rose from 58.6% to 67.1% during the same period.
    • Recent study findings show lower anaemia prevalence compared to NFHS data:
      • Women (15–49 years): 41.1% (study) vs. 60.8% (NFHS-5).
      • Adolescent girls (15–19 years): 44.3% vs. 62.6%.
      • Adolescent boys: 24.3% vs. 31.8%.
  • Iron Deficiency: Only 9% of anaemia cases were due to iron deficiency, while 22% were from unknown causes.
  • Geographic Variation: States like Assam reported high anaemia prevalence (50%-60%) but low iron deficiency (18%).

Factors Contributing to Rising Anaemia

  • Nutritional Deficiencies: Deficiency in Vitamin B12, folate, and other erythropoietic nutrients.
    • Erythropoietic nutrients are essential nutrients that support red blood cell production by aiding hemoglobin synthesis and erythropoiesis.
  • Environmental Factors: Air pollution and unhygienic environments exacerbate anaemia prevalence.
  • Blood Collection Methods: Capillary blood samples (used in NFHS) may overestimate anaemia prevalence due to contamination with body fluids.
  • Dietary Patterns: Inadequate dietary diversity limits nutrient absorption.

6x6x6 strategy Under AMB

  • Six Beneficiary Groups:
    • Children (6–59 months)
    • Children (5–10 years)
    • Adolescents (10–19 years)
    • Pregnant women
    • Lactating mothers
    • Women of reproductive age (20–49 years)
  • Six Interventions:
    • Prophylactic iron and folic acid supplementation
    • Biannual deworming
    • Behaviour change communication campaigns
    • Testing and treatment for anaemia
    • Provision of iron-fortified foods
    • Addressing non-nutritional causes of anaemia
  • Six Institutional Mechanisms:
    • Convergence of departments
    • Supply chain management
    • Training of healthcare providers
    • Monitoring and evaluation frameworks
    • Public health campaigns
    • Community engagement and adoption

Check Out UPSC CSE Books From PW Store

Government Initiatives to Tackle Anaemia

  • Anaemia Mukt Bharat (AMB) Strategy (2018): Reduce anaemia prevalence across six age groups through the 6x6x6 strategy, which includes six interventions, six beneficiary groups, and six institutional mechanisms.
  • National Deworming Day (NDD) (2015): Biannual mass deworming for children and adolescents (1–19 years) to reduce worm infestations that contribute to anaemia.
  • National Sickle Cell Anaemia Elimination Mission (2023):To eliminate sickle cell disease as a public health problem by 2047, focusing on screening, diagnosis, and management in tribal areas.
  • Strengthening Supply Chains for IFA Supplements :To ensure uninterrupted availability of iron and folic acid supplements across health centers.
  • National Centre of Excellence and Advanced Research on Anaemia Control (NCEAR-A) (2018): To enhance capacity building and develop training toolkits for healthcare providers.

Challenges in Addressing Anaemia

  • Single-Focus Interventions: Policies focused primarily on iron supplementation are insufficient to address multifactorial anemia.
  • Diet Accessibility: High-quality, nutrient-rich foods remain unaffordable for a significant portion of the population.
  • Policy Implementation: Lack of integration between nutrition-focused interventions and broader public health initiatives.
  • Data Collection: Reliance on less accurate blood collection methods (capillary samples) skews prevalence estimates.

Enroll now for UPSC Online Classes

Way Forward

  • Diversified Nutritional Interventions: Promote balanced diets with fruits, milk, and vegetables to improve nutrient absorption.
  • Improved Data Collection: Transition to venous blood draws as recommended by WHO for accurate anaemia estimation.
  • Enhanced Public Health Initiatives: Expand Anaemia Mukt Bharat with focus on dietary diversity and behavior change communication.
  • Economic Accessibility: Subsidize nutrient-dense foods to ensure wider population access.
  • Holistic Interventions: Combine iron supplementation with other measures like deworming, fortification of staples, and point-of-care treatment.

The Telecom Regulatory Authority of India (TRAI) has recommended capping internet tariffs for Wi-Fi service providers under the PM-WANI scheme at twice the retail broadband rate.

About PM-WANI Scheme

  • Launch Year: Launched in 2020 by the Department of Telecommunications (DoT).
  • Aim: To enhance the proliferation of public Wi-Fi hotspots and create robust digital communication infrastructure, especially in rural areas.
  • Promotes ease of doing business by allowing local businesses to become Wi-Fi providers without licenses or fees.

PM-WANI Ecosystem Components

  • Public Data Office (PDO): PDOs are usually housewives, tea sellers, photocopy shop owners and roadside food stalls who offer cheap data vouchers at Rs 5 to Rs 100.
    • An average PDO makes Rs 700-1000 per month and will be able to sustain the business at the new ceiling price.
      • They set up Wi-Fi hotspots to provide internet access.
      • No license fee is required from DoT for operation.
  • Public Data Office Aggregator (PDOA): Provides authorization, accounting services, and user interfaces for purchasing data plans and monitoring usage.
  • App Provider: Develops applications to help users locate and connect to nearby PM-WANI hotspots for seamless internet access.
  • Central Registry:
    • Managed by the Centre for Development of Telematics (C-DoT).
    • Maintains records of App Providers, PDOs, and PDOAs.

Check Out UPSC Modules From PW Store

Accessing PM-WANI Internet

  • Download a relevant app to view available networks.
  • Select a connection from the list and make a payment to access the internet.
  • The user can access the network until their balance is exhausted.

Advantages of Capping Internet Tariffs for PM-WANI Scheme

  • Affordable Connectivity: Capping broadband costs at twice the retail broadband rate allows Public Data Offices (PDOs) to access connectivity at lower rates (₹500–₹600/month).
  • Boosts PDO Viability: Reduces dependency on expensive leased line connections (40–80 times costlier), improving profitability for small-scale PDO operators.
  • Encourages Public Participation: Attracts more housewives, tea sellers, and small businesses to become PDOs by offering affordable operational costs.
  • Rural Connectivity Expansion: Helps bridge the digital divide by promoting the establishment of affordable public Wi-Fi in underserved rural areas.
  • Social and Economic Impact: Enhances digital access for education, work, and communication at a minimal cost for the lower-income population.

Recently, the Lokpal, India’s first anti-corruption ombudsman, revealed data showcasing its limited productivity since its establishment.

About Lokpal

Lokpal

  • The Lokpal is a national-level anti-corruption institution established to investigate and prosecute corruption cases involving public officials
  • It serves as an independent body to ensure accountability among ministers and government employees.
  • Establishment: The Lokpal and Lokayukta Act, passed in 2013, came into force in 2014. 
  • However, the first Lokpal, Justice Pinaki Chandra Ghosh, was appointed only in 2019 after a delay of nearly five years. 
    • The Act mandates the establishment of Lokayuktas at the state level.
  • Historical Background : Its establishment follows recommendations from various committees and commissions, such as the First Administrative Reforms Commission (1966) and the 2nd ARC (2005).

Enroll now for UPSC Online Classes

Composition of Lokpal

  • Lokpal consists of a chairperson and up to eight members, with at least 50% being judicial members.
  • The members must include representatives from Scheduled Castes, Scheduled Tribes, Other Backward Classes, minorities, and women.
  • The selection committee comprises the Prime Minister (Chairperson), Speaker of the Lok Sabha, Leader of Opposition, Chief Justice of India or a nominated judge, and an eminent jurist.

Low Productivity of Lokpal

  • Limited Cases Handled:
    • Only 24 investigations ordered and six prosecution sanctions granted since its establishment.
    • Over 90% of complaints rejected due to incorrect format or lack of compliance with procedural requirements.
  • Complaints Received:
    • From April to December 2024, 226 complaints were registered.
    • 3% complaints were against the Prime Minister or Union Ministers, 21% against Group A-D central government officials, and 41% against “Others,” including state officials.

Factors for Low Productivity of Lokpal

  • Delayed Appointment: First Lokpal was appointed five years after the Act’s implementation.
  • Dependency on Other Agencies: Investigations rely on the Central Vigilance Commission (CVC) and Central Bureau of Investigation (CBI) due to the absence of internal inquiry mechanisms.
  • Structural Limitations: Absence of financial and administrative independence reduces its functional efficacy.
    • Heavy emphasis on the format of complaints rather than content leads to high rejection rates.
  • Legislative Challenges: Lack of power to initiate investigations independently against public servants.
    • Limitations such as a 7-year period to file complaints and severe penalties for false complaints deter reporting.
  • Insufficient Coordination: Weak collaboration with state Lokayuktas and other decentralized anti-corruption bodies.

Check Out UPSC NCERT Textbooks From PW Store

Way Forward

  • Enhance Functional Autonomy: Ensure financial, administrative, and operational independence of Lokpal to reduce reliance on other agencies.
  • Streamline Complaint Procedures: Simplify the complaint submission process to focus on content rather than format.
  • Fill Vacancies: Expedite the appointment of key personnel such as the Director of Inquiry and Director of Prosecution.
  • Strengthen State Coordination: Align state Lokayukta Acts with the Lokpal Act to ensure consistent anti-corruption mechanisms across the country.
  • Public Awareness: Conduct campaigns to educate citizens about the Lokpal’s role and procedures to encourage participation.
  • Technological Integration: Leverage digital tools for better complaint tracking, investigation monitoring, and operational transparency.
Additional Reading: Lokpal and Lokayukt

The Department of Telecommunications (DoT) has unveiled the Sanchar Saathi mobile app designed to streamline the reporting of suspected fraudulent communications. 

Sanchar Saathi Mobile App

About Sanchar Saathi Mobile App

  • The Sanchar Saathi Mobile App is a user-friendly platform designed to fortify telecom security and empower citizens. 
  • It is launched by the Department of Telecom under the Ministry of Communications. 
  • It is available for both Android and iOS platforms.
  • It provides users with critical tools to secure their telecom resources and combat telecom frauds.

Enroll now for UPSC Online Course

Key Features

  • ChakshuReporting Suspected Fraud Communications (SFC): Users can report suspected calls and SMS using app and directly from mobile phone logs.
  • Know Mobile Connections in Your Name: Citizens can identify and manage all mobile connections issued in their name, ensuring no unauthorized usage.
  • Blocking Your Lost/ Stolen Mobile Handset: Lost or stolen mobile devices can be swiftly blocked, traced and recovered.
  • Know Mobile Handset Genuineness: The app offers an easy way to verify the authenticity of mobile handsets, ensuring users purchase genuine devices.

A new method to manage ecological risks from DDT by binding it with biochar has been developed by the researchers of Sweden’s Chalmers University of Technology.

About the Research

  • It is a three-year study conducted on a 23-hectare DDT-contaminated former tree nursery in southern Sweden by mixing Biochar into the contaminated soil.
  • Finding:
    • Uptake of DDT by earthworms in the soil was found to have been halved. 
    • Biochar is found to bind DDT efficiently, so that it is not taken up by soil organisms.
  • Significance:
    • Enable the cultivation of certain crops on degraded and unusable land due to the environmental risks.
    • Improved Soil Health: Biochar is an environmentally friendly product and binds contaminants and can improve soil health when added to soil improving the soil health.
    • Cost Effective Solution: Biochar is economical to produce, therefore is a cost effective solution for rehabilitating degraded soil.
    • Climate Change Mitigation: Mixing biochar is also useful for climate change mitigation since it can contribute to long-term storage of carbon in the soil.

Enroll now for UPSC Online Course

About Dichlorodiphenyltrichloroethane (DDT)

  • DDT is a toxic, man-made, hazardous chemical which is also a persistent organic pollutant (POPs), first synthesized in 1874.
  • Insecticidal Properties: DDT’s insecticidal properties were discovered in 1939 to control vector borne diseases and used to control insects in crops and livestock production, institutions, homes and gardens.
  • Impacts: 
    • Bioaccumulation: DDT bioaccumulates in fatty tissues of humans and animals with high intake associated with developmental and reproductive abnormalities.
    • Carcinogenic: DDT is classified as ‘probably carcinogenic’ to humans and can suppress the immune system and disrupt sex hormones
    • Omnipresent: DDT being a POP and its widespread use is stable and persistent in the environment with its residues found everywhere such as the Artic, the Antarctic, open oceans, and high mountain areas.
    • Animal health: DDT causes eggshell thinning in birds and is also acutely toxic to fish and marine invertebrates.
    • Endocrine Disruptor: DDT is highly stable and can accumulate in adipose tissue, so it can be found in the tissues of all living organisms. 
    • Soil Health: DDT was widely used as a pesticide in agriculture and resulted in devastating effects on soil health making it infertile.
      • In 1962, Rachel Carson published “The Silent Spring” documenting the devastating effect of pesticides on the natural world, focusing on DDT.
  • DDT in India: 
    • DDT-Contaminated SoilIndia banned the agricultural use of DDT by 1972.
    • Usage: The Ministry of Health and Family Welfare is the only consumer of DDT 
      • It is used to control vector borne diseases by spraying DDT over walls in malaria-infected houses and buildings in rural and urban areas.
    • Nodal Ministry:  Department of Chemicals, Petrochemical and Fertilizers (DCP) being the nodal committee overseeing the production and supply of DDT.
      • India is the sole producer of DDT globally since 2008.
    • Phase Out: In 2014, India got the first extension for 10 years to phase out DDT by 2024 under the Stockholm Convention. However, it missed the deadline
      • The Convention had outlawed the production and use of DDT and other toxic chemicals and limited it to mosquito control.
    • Exports: India exports the chemical to Botswana, South Africa, Zambia, Mozambique, Namibia and Zimbabwe.

Check Out UPSC CSE Books From PW Store

Biochar

DDT-Contaminated Soil

  • Biochar is a charcoal-like substance that’s made by burning organic material from agricultural and forestry wastes (also called biomass) in a controlled process. 
    • Biochar converts carbon into a stable form and is cleaner than other forms of charcoal.
  • Raw Material: It is made from biomass sources like, wood chips, plant residues, manure or other agricultural waste products
  • Process: Biochar is produced during pyrolysis, a thermal decomposition of biomass in an oxygen-limited environment called pyrolysis. 
  • Physical Attributes: Biochar is black, highly porous, lightweight, fine-grained and 70 percent composed of carbon
  • Benefits: 
    • Biochar has proven to improve the quality of construction materials such as concrete or asphalt
    • It is widely used as a fodder additive for animal health
    • It helps in regulating humidity, absorbs toxins, fosters beneficial microbial life

The Financial Intelligence Unit (FIU-IND) and the National Housing Bank (NHB) have signed an MoU as part of efforts in effective implementation of requirements of the Prevention of Money Laundering Act and Rules.

About the Prevention of Money Laundering Act (PMLA)

  • The Prevention of Money Laundering Act (PMLA) is a law in India that was enacted in 2002 to prevent money laundering under Article 253.
    • It also provides for the confiscation of property that is derived from money laundering. 
  • Objective: PMLA empowers implementation of the international conventions and to give effect to the Recommendations of the Financial Action Task Force (FATF) on addressing the problem of money laundering. 
  • Authority: The Director of the FIU-IND and the Director (Enforcement) have the power to enforce the PMLA.
  • Prescribed Obligation: The Act obligates banking companies, financial institutions and intermediaries to verify and maintain records of the identity of all its clients and all transactions.
  • Special Courts: Under PMLA, Special Courts are used to try the offenses punishable under PMLA and offenses with which the accused may, under the Code of Criminal Procedure 1973, be charged at the same trial. 
  • Bail Provision: Under Section 45 of the PMLA, bail conditions under the The Prevention of Money Laundering Act (PMLA) has been specified,
    • The accused must prove that there is no prima facie case against them 
    • The accused must prove that they are unlikely to commit another offense while on bail 
    • The public prosecutor must be given an opportunity to oppose the bail application 
    • The court must be satisfied that there are reasonable grounds for believing the accused is not guilty

Check Out UPSC NCERT Textbooks From PW Store

About Financial Intelligence Unit – India (FIU-IND)

  • It was set up as the central national agency in 2004 responsible for receiving, processing, analyzing and disseminating information relating to suspect financial transactions.
  • Reporting Authority: FIU-IND is an independent body reporting directly to the Economic Intelligence Council (EIC) headed by the Finance Minister.
  • Function: 
    • Collection of Information: FIU is the central reception point for receiving Cash Transaction reports (CTRs), Non-Profit Organisation Transaction Report(NTRs), Cross Border Wire Transfer Reports (CBWTRs), Reports on Purchase or Sale of Immovable Property (IPRs) and Suspicious Transaction Reports (STRs) from various reporting entities.
    • Sharing of Information: Share information with national intelligence/law enforcement agencies, national regulatory authorities and foreign Financial Intelligence Units.
    • Act as Central Repository: Establish and maintain national data base on the basis of reports received from reporting entities.
    • Coordination: Coordinate and strengthen collection and sharing of financial intelligence through an effective national, regional and global network to combat money laundering and related crimes.
    • Research and Analysis: Monitor and identify strategic key areas on money laundering trends, typologies and developments.

National Housing Bank (NHB)

  • NHB is a regulatory body for overall regulation and licensing of housing finance companies in India. 
  • NHB is an apex financial institution for housing and was set up by an Act of Parliament in 1987. 
  • Nodal Ministry: NHB is under the jurisdiction of Ministry of Finance
  • Objective: NHB aims to build a strong, healthy, cost-effective, and viable Housing Finance System.
  • Supervision: Housing Finance Companies (HFCs) are regulated by the Reserve Bank of India, whereas NHB has the power of registration and supervision of Housing Finance Companies (HFCs)
  • Functions:
    • Supervision and grievance redressal regarding Housing Finance Companies (HFCs). 
    • Surveillance of HFC  through On-site & Off-site Mechanisms and co-ordinates with regulators.
    • Financing and promotion and development of HFCs 

New Glenn Rocket of Blue Origin

Context: Blue Origin has launched its New Glenn rocket on its first test flight sending up a prototype satellite to orbit thousands of miles above Earth.

About New Glenn Rocket

  • The New Glenn rocket is a heavy-lift launch vehicle developed by Blue Origin.
  • The Rocket is named after John Glenn, the first American astronaut to orbit Earth more than 60 years ago.
  • Specifications: It is approximately 320 feet high, two stage engine rocket.
    • The first stage is reusable and powered by seven BE-4 engines, which are liquefied natural gas (LNG)-fueled, oxygen-rich staged combustion engines. 
    • New Glenn’s second stage is powered by two BE-3U engines, which use liquid hydrogen and liquid oxygen.
  • Reusability: Designed to be reused for a minimum of 25 flights, significantly reducing launch costs.
  • New Glenn is expected to challenge Falcon 9’s — also a partially reusable launch vehicle of SpaceX.

Blue Origin

  • Blue Origin is a private aerospace and space exploration company founded by Amazon’s founder Jeff Bezos in 2000.

Check Out UPSC Modules From PW Store

QS World Future Skills Index 2025

Context: The QS World Future Skills Index 2025 has been released recently.

About QS World Future Skills Index

  • The Index evaluates a country’s readiness to recruit for the skills needed in the jobs of tomorrow. 
  • Released By: It is developed by London-based Quacquarelli Symonds (QS)
  • Assessment: The assessment of the ‘future of work’ indicator has been done largely from the demand side, that is, job postings.
  • Measurement: The future of work score measures the extent to which future-focused skills (like digital, AI, and green competencies) have permeated global job advertisements compared to traditional skill sets.
    • This score is derived from an analysis of over 280 million job postings worldwide
  • Parameters: The Report measures 4 main parameters like,
    • Skills Fit; Academic Readiness; Future of Work; Economic Transformation.

Key Highlights of the Report

  • India’s overall ranking puts it as a “future skills contender” ranking  25th across all indicators.
    • Countries like the USA, UK, Germany, Australia, and Canada, among others in the top ten have been categorised as “future skills pioneers”.
  • India’s Performance: 
    • Jobs of the Future: India was ranked second in terms of preparedness for jobs of the future including artificial intelligence (AI) and green skills, only behind the United States
    • Skills Fit: India scored 59.1 out of 100 and is the worst performance among the top 30 countries overall. 
      • The poor performance is because of  India’s higher education system struggling to keep pace with evolving employer needs.
    • Economic Transformation: India scored 58.3 on this parameter,
      • It is driven by the interplay of growth, workforce efficiency, and the evolving role of higher education 
      • Challenges: There are gaps in investment and innovation capacity that pose challenges that could slow long-term growth.

QS World Future Skills Index 2025

Aiming for UPSC?

Download Our App

      
Quick Revise Now !
AVAILABLE FOR DOWNLOAD SOON
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध
Quick Revise Now !
UDAAN PRELIMS WALLAH
Comprehensive coverage with a concise format
Integration of PYQ within the booklet
Designed as per recent trends of Prelims questions
हिंदी में भी उपलब्ध

<div class="new-fform">







    </div>

    Subscribe our Newsletter
    Sign up now for our exclusive newsletter and be the first to know about our latest Initiatives, Quality Content, and much more.
    *Promise! We won't spam you.
    Yes! I want to Subscribe.