Tag: UPSC

  • Privatization in Railways

    In this article, we will discuss Privatization in Railways (Key Points). So, let’s get started.

    Privatisation

    • Under this at least 151 modern trains will be introduced and 109 pairs of routes will be planned out for private train operations.
    • Train sets have to be brought by private operators and maintained by them.
    • Fares in private trains will be competitive and prices on other modes of transport like airlines, buses have to be kept in mind while fixing the fares
    • Private participation in passenger train operations will only be 5% of the total operations of Railways. 95% of trains will still be run by Indian Railways.
    • The project will bring private sector investment of about Rs. 30,000 crore.

    Reason

    • To develop India’s railway infrastructure to provide travel services to all its passengers.
    • According to the 2019-20 data, the Railways ferried 8.4 billion (840 crore) passengers in 2019-20, about five crore passengers could not be accommodated, meaning their wait-listed tickets were dropped.
    • During the busy seasons/summer season nearly 13.3% passengers were not able to get confirmed reservations.
    • Induction of modern technology and reduction in transit time and the demand-supply deficit in train tickets.

    Benefits

    • Confirmed tickets and faster trains for passengers.
    • Trains would run faster and would be safer and provide more facilities.
    • Reduction in maintenance cost of train coaches.
    • The train coaches now required maintenance after they ran 4,000 km, but modern coaches would need maintenance after every 40,000 km or once or twice in 30 days.
    • Reduction in railways loss. Currently, the railways makes losses in passenger services.
    • Provide revenue to railways for future operations.
    • The private entity will pay the Railways fixed haulage charges, energy charges as per actual consumption and a share in gross revenue determined through the bidding process.
    • RFQ had been issued under the Make in India policy. So the coaches would have to be manufactured in India.
    • This will create jobs and utilisation of local components in manufacturing.
  • SEBI (Powers and Functions)

    In this article, we will discuss SEBI (Powers and Functions). So, let’s get started.

    Powers and Functions of SEBI

    • SEBI is a quasi-legislative and quasi-judicial body which can draft regulations, conduct inquiries, pass rulings and impose penalties.
    • It functions to fulfill the requirements of three categories –
    • Issuers – By providing a marketplace in which the issuers can increase their finance.
    • Investors – By ensuring safety and supply of precise and accurate information.
    • Intermediaries – By enabling a competitive professional market for intermediaries.
    • By Securities Laws (Amendment) Act, 2014, SEBI is now able to regulate any money pooling scheme worth Rs. 100 cr. or more and attach assets in cases of non-compliance.
    • SEBI Chairman has the authority to order “search and seizure operations”. SEBI board can also seek information, such as telephone call data records, from any persons or entities in respect to any securities transaction being investigated by it.
    • SEBI perform the function of registration and regulation of the working of venture capital funds and collective investment schemes including mutual funds.
    • It also works for promoting and regulating self-regulatory organizations and prohibiting fraudulent and unfair trade practices relating to securities markets.
  • Reserve Bank of India (Functions)

    In this article, we will discuss Reserve Bank of India (Functions). So, let’s get started.

    Functions

    The Issuer of Bank Notes
    The most important function of RBI is the issuance of currency notes and coins, except the one rupee note and coin which are issued by the Ministry of Finance. All other notes bear the signature of the RBI Governor. However, the agency of distribution of all notes and coins issued by the Government of India is the Reserve Bank of India.

    Banker to the Government
    Another chief function of RBI is that it takes care of the banking needs of the government, which includes maintaining & operating the deposit accounts of the government, collecting the receipts of funds, and making payments on behalf of the Government of India. It also represents the Indian Government, as a member of the International Monetary Fund and the World Bank.

    Custodian of Cash Reserves of Commercial Banks
    The commercial banks are required to maintain the cash reserves at a rate decided by the RBI in its monetary policy.

    Custodian of Foreign Exchange Reserve
    Another of the important functions of RBI is maintaining a reserve of foreign currencies that enables the RBI to deal with any crisis situation.

    Lender of the Last Resort
    Often regarded as the banker of banks, the RBI acts as a parent to all commercial banks in India. Thus, it becomes the lender of the last resort for all banks when they are in a crisis situation. RBI helps them by lending money, although at higher RoI, to sail through the tide of financial difficulties.

    Controller of Credit
    RBI controls the credit created by the commercial banks in India, in accordance with the economic priorities of the government of India. RBI uses quantitative and qualitative methods to control and regulate the flow of money in the market. These are implemented by announcing monetary policies at regular intervals. The monetary policy involves the management of interest rates and money supply. The central bank of India tweaks the money supply to achieve objectives such as liquidity, inflation, and consumption.

  • IRDA (Features and Benefits)

    In this article, we will discuss IRDA (Features and Benefits). So, let’s get started.

    Features and Benefits

    Following are the salient features of the apex body, the Insurance Regulatory and Development Authority of India:

    Acts as a regulator for the insurance industry.

    Protects the policyholder’s interests.

    Rules and regulations are framed by the apex body under Section 114A of the Insurance Act, 1938.

    It is entrusted under the Insurance Act to grant the certificate of registration to new insurance companies to operate in India.

    Oversees the insurance industry’s activities to ensure sustained development of insurers and policyholders.

    Types of Insurances Regulated by the IRDAI:
    Insurance is mainly divided into Life and Non-Life/General Insurance. These are further classified into other types of insurance. Below are the types of insurance regulated by the IRDAI:

    Life Insurance

    • Term Plans
    • Endowment Policies
    • Unit-linked Insurance Policies
    • Retirement Policies
    • Money-back Policies

    General Insurance

    • Health Insurance Policies
    • Vehicle/Motor Insurance Policies
    • Car insurance
    • Bike Insurance
    • Property Insurance Policies
    • Travel Insurance Plans
    • Gadget Insurance Plans
  • IRDA (Functions)

    In this article, we will discuss IRDA (Functions). So, let’s get started.

    Functions

    Below are the important functions of the IRDAI in the insurance industry in India:

    Grant, renew, modify, suspend, cancel or withdraw registration certificates of the insurance company.

    Protecting the interests of the policyholder in matters concerning the grant of policies, settlement of claims, nomination by policyholders, insurable interest, surrender value of the policy and other terms and conditions of the policy.

    Specify code of conduct, qualifications and training for intermediary or insurance agents.

    Specify code of conduct for loss assessors and surveyors.

    Levying fees and charges for carrying out the provisions of the Act.

    Undertaking inspection, calling for information, and investigations including an audit of insurance companies, intermediaries, and other organizations associated with the insurance business.

    Regulate and control insurance rates, terms and conditions, advantages that may be offered by the insurance providers.

    Apart from the above-mentioned core functions of the IRDA, there are several functions that the regulator performs keeping the policyholder’s interest as its priority.

  • Australian Bushfire (Miscellaneous Impacts Part-2)

    In this article, we will discuss Australian Bushfire (Miscellaneous Impacts Part-2). So, let’s get started.

    Impact on Environment

    Ash from the fires has landed in school playgrounds, backyards, and is being washed up on Australia’s beaches and into freshwater stores and water catchments. Drinking water catchments are typically forested areas, and so are vulnerable to bushfire pollution. Bushfire ash contains nutrients, such as nitrogen and phosphorous. Increased nutrient concentrations can stimulate the growth of cyanobacteria, commonly known as blue-green algae. Cyanobacteria produce chemicals which may cause a range of water quality problems, including poor taste and odour, and sometimes toxic chemicals. During a blaze, plumes of smoke, ash and other debris catch on the wind and scatter across the landscape. Sometimes they blow over the ocean, where they add nutrients. When burned soils flow into streams and rivers, they fertilize water plants and algae. The extra nutrients can have benefits in moderation but too much can over-fertilize and cause excess algal growth. Algae absorb oxygen in the water in order to grow, and deplete dissolved oxygen when they die and decompose, which can asphyxiate fish and other marine life, with localized impacts to biodiversity. The same can be true in ocean environments, where smoke has shown to have a negative impact on marine ecosystems in several past incidents: haze from record wildfires in Indonesia killed coral reefs in the late 1990s, according to a study in Science, as iron-rich smoke billowed out over the coast and fertilized the water, causing a huge plankton bloom. The resulting so-called red tide asphyxiated coral reefs around the Mentawai Islands, off southwest Sumatra.

    Impact on Agriculture

    The bushfires have scorched pasture, destroyed livestock and razed vineyards, with regrowth and recovery likely to stretch water resources already challenged by drought. Reports indicate that the country’s dairy supply will likely be hit hardest, with Victoria and New South Wales—Australia’s key milk-producing states—suffering the greatest loss of farmland and infrastructure damage. Meat, wool, and honey output may also be impacted. About 13 per cent of the national sheep flock is in regions that have been significantly impacted and a further 17 per cent in regions partially impacted, according to Meat & Livestock Australia. The Intergovernmental Panel on Climate Change (IPCC) in their 2019 report on Climate Change and Land found that climate change has already affected food security and the agriculture industry due to warming, changing precipitation patterns, and greater frequency of some extreme events (high confidence). In some dryland areas, increased land surface air temperature and evapotranspiration and decreased precipitation amount, in interaction with climate variability and human activities, have contributed to desertification. These areas include Australia.

  • Australian Bushfire (Miscellaneous Impacts Part-1 )

    In this article, we will discuss Australian Bushfire (Miscellaneous Impacts Part-1). So, let’s get started.

    Impact on Mental Health

    Fires not only cause physical harm; many people experience mental trauma from the experience of emergency evacuation and losing homes, pets, belongings, livestock or other sources of livelihoods. Some communities found themselves unable to evacuate quickly when lost electricity meant fuel stations weren’t operational or blocked roads kept people trapped in high risk areas. Some were forced to seek safety on beaches and on boats, sheltering children overnight while witnessing unprecedented firestorms. Such experiences can have lasting mental health impacts across affected communities.

    Impact on Climate

    The bushfires have not only been made more likely and intense by climate change, they also add to it. Until the 2019–2020 Australian bushfire season, the forests in Australia were thought to reabsorb all the carbon released in bushfires across the country. This would mean the forests achieved net zero emissions. However, global warming is making bushfires burn more intensely and frequently and the 2019–2020 bushfires have already emitted 400 megatonnes of carbon dioxide into the atmosphere, according to the Copernicus monitoring programme. This is as much as Australia’s average annual carbon dioxide emissions in just the past three months. These will increase Australia’s annual greenhouse gas emissions, contributing to global warming, and heighten the likelihood of recurring megafires that will release yet more emissions. This is a deeply concerning climate feedback loop.

  • Australian Bushfire

    In this article, we will discuss Australian Bushfire (Impact on Public Health and Ongoing Ecological and Biodiversity). So, let’s get started.

    Impact on Public Health

    Due to intense smoke and air pollution stemming from the fires, in January 2020 reports indicated that Canberra measured the worst air quality index of any major city in the world. Wildfires produce harmful smoke which can cause fatalities. Wildfires produce fine particle air pollution, which is directly threatens human health even during relatively short exposures. Close to the fires, smoke is a health risk because it contains a mixture of hazardous gases and particles that can irritate the eyes and the respiratory system. The effects of smoke exposure and inhalation range from eye and respiratory tract irritation to more serious disorders, including reduced lung function, bronchitis, exacerbated asthma and premature death. Exposure to particulate matter is the main public health threat from short-term exposure to wildfire smoke. According to the World Health Organization, older people, people with cardiorespiratory diseases or chronic illnesses, children, and people who work outdoors are particularly vulnerable.

    Impact on Ongoing Ecological and Biodiversity

    After initial devastation of the fires, impacts are ongoing. An estimated billion animals, and many more bats and insects, are likely to die in total over the coming weeks and months as a result of lost habitat and food sources. This loss is part of a much bigger picture of a world where biodiversity is in steep decline. We are losing wildlife at an ever-increasing scale across the planet, with impacts to ecosystems vital for our own global food production. The world’s terrestrial biodiversity is concentrated in forests: they are home to more than 80 per cent of all terrestrial species of animals, plants and insects. So, when forests burn, the biodiversity on which humans depend for their long-term survival also disappears in the inferno. With over 1 million species currently facing extinction if we continue with business as usual, extreme weather events such “megafires” become an increasing matter of concern for species survival.

  • Insurance in India

    In this article, we will discuss Insurance in India (Background and Challenges). So, let’s get started.

    Background of Insurance Sector

    The insurance sector has witnessed many changes over the years including:

    • Nationalisation of life (LIC Act 1956) and non-life sectors (GIC Act 1972).
    • Constitution of the Insurance Regulatory and Development Authority of India (IRDAI) in 1999.
    • Opening up of the sector to both private and foreign players in 2000.
    • Increase in the foreign investment cap to 26% from 49% in 2015.
    • The recent notification of 100% foreign direct investment (FDI) for insurance intermediaries (announced in the Union Budget of 2019-20) has further liberalised the sector.

    Challenges

    • Prevalence of Insurance Gap: The insurance penetration (ratio of total premium to GDP (gross domestic product)) and density (ratio of total premium to population) stood at 3.69% and US$ 73, respectively for FY18 (fiscal year 2017-18), which is low in comparison with global levels.
    • These low penetration and density rates reveal the uninsured nature of large sections of population in India, and the presence of an insurance gap.
    • Public Sector Dominated: The insurance sector has transitioned from being an exclusive State monopoly to a competitive market, but public-sector insurers hold a greater share of the insurance market even though they are fewer in number.
    • Nascent Non-life Insurance: Life insurance dominates the sector with a huge share of 74.7%, with non-life insurance accounting for the remaining 25.3%.
    • In the non-life insurance sector, motor, health, and crop insurance segments are driving growth. India’s non-life insurance penetration is below 1%.
    • In addition, insurance products catering to speciality risks such as catastrophes and cyber security are at a nascent stage of development in the country.
    • Rural-Urban Divide: Low insurance penetration and density rates prevail in India. However, Rural participation of insurers remains deficient, and life insurers, especially private ones, gravitate towards the urban population.
    • Capital Starved Insurers: Insurers in India lack sufficient capital, and their financial health, particularly that of the public-sector insurers, is in a precarious state.
    • Further, investment in the insurance sector got dwindled due to the crisis in banks and NBFCs (non-banking financial companies) sector.
  • CBI (Director)

    In this article, we will discuss CBI (Director). So, let’s get started.

    CBI (Director)

    • Director, CBI as Inspector General of Police, Delhi Special Police Establishment, is responsible for the administration of the organisation.
    • Till 2014, the CBI Director was appointed on the basis of the DSPE Act, 1946.
    • In 2003, DSPE Act was revised on Supreme Court’s recommendation in the Vineet Narain case. A committee that had members from Central Vigilance Commission, Secretaries from Home Ministry, Ministry of Personnel and Public Grievances would send recommendations to Central Government for the appointment of CBI Director.
    • In 2014, the Lokpal Act provided a committee for appointment of CBI Director:
      • Headed by Prime Minister
      • Other members – Leader of Opposition/ Leader of the single largest opposition party, Chief Justice of India/ a Supreme Court Judge.
      • Home Ministry sends a list of eligible candidates to DoPT. Then, the DoPT prepares the final list on basis of seniority, integrity, and experience in the investigation of anti-corruption cases, and sends it to the committee.
    • Director of CBI has been provided security of two year tenure, by the CVC Act, 2003.