SC hits out at Centre on loan moratorium scheme
Paper:
Mains: General Studies- II: Governance, Constitution, Polity, Social Justice and International relations.
Why in News?
The Supreme Court criticized the Centre for “hiding behind the Reserve Bank of India” without making its stand clear on the loan moratorium scheme introduced during the COVID-19 pandemic.
Key details:
- SC asked Centre to clarify its stand within a week on the waiver of interest on interest for deferred payments of instalments for loans during the moratorium period announced due to the coronavirus lockdown.
- A bench headed by Justice Ashok Bhushan said the Centre not made its stand clear on the issue despite the fact that ample powers were available with it under the Disaster Management Act.
What is exactly the Issue?
- According to RBI’s March 27 circular, the financial institutions were allowed to give customers a moratorium on loan installments that fall between March 1 and May 31.
- However, under the RBI circular, the interest chargeable during the moratorium period of three months would be added to the loan installments that fall after the prescribed period.
- It is this interest burden that is being contested in the plea.
- The interest charged during moratorium period would be added up into the EMIs at the end of three-month forbearance.
- It will have to be paid in one go or be equally divided in all future EMIs.
- The monthly bill for customers will
- In the present scenario, when all the means of livelihood has been curtailed by the government of India by imposition of lockdown and the petitioner has no way to earn a livelihood, the imposition of interest will defeat the very purpose of permitting moratorium on loans.
What exactly is moratorium?
- A moratorium period is the time during a loan term when the borrower is not required to make any repayment.
- It is a waiting period before which repayment of EMIs resumes.
- Moratoriums are often enacted in response to temporary financial hardships.
Standoff between Mizoram govt., Assam Rifles escalates
Paper:
Mains: General Studies- II: Governance, Constitution, Polity, Social Justice and International relations.
Why in news?
Mizoram government has alleged that Assam Rifles deals with the civil administration “with contempt” and “fails to recognise” that AFSPA is no longer in force in the northeastern state.
Reason behind the standoff:
- The Mizoram government alleged that senior officers of Assam Rifles skipped the state-level Independence Day celebration after the administration issued a Warrant of Precedence (WOP) on August 11.
- Assam Rifles returned the invitation stating it was aggrieved as the “WOP was notified without its consultation.
- The chief secretary stated that Assam Rifles had no authentic reason to skip the celebration as its brigadier was elevated from an equivalent rank of additional chief secretary to that of the secretary to the state government.
- The personal ego of the head of Assam Rifles in Mizoram and his failure to appreciate that the entire Northeast is not a ‘disturbed area’ seems to have come in the way of cordial relations between Assam Rifles and state government agencies.
Order of precedence of the Republic of India:
- The order of precedence of the Republic of Indiais the protocol list (hierarchy of important positions) in which the functionaries, dignitaries and officials are listed according to their rank and office in the Government of India.
- The order is established by the President of India, through the President’s Secretariat and is maintained by the Ministry of Home Affairs.
- It is only used to indicate ceremonial protocol and has no legal standing and does not reflect the Indian presidential line of succession or the co-equal status of the separation of powers under the constitution.
- It is not applicable for the day-to-day functioning of the Government of India.
What is AFSPA?
- AFSPA was enacted on 11 September 1958 to bring under control what the government considered ‘disturbed areas’, essentially conflict-hit areas.
- It was first implemented in the Northeast, and then in Punjab.
- In September 1990, Parliament passed the Armed Forces (Jammu and Kashmir) Special Powers Act, which came into force retrospectively from 5 July 1990.
When is it applicable?
- It can be applied only after an area has been declared “disturbed”.
- Earlier, states had the power to declare a territory thus, but in 1972, it passed to the centre.
What is a disturbed area?
- Areas are considered disturbed “by reason of differences or disputes between members of different religious, racial, language or regional groups or castes or communities”.
- Section (3) of AFSPA empowers the governor of the state/Union territory to issue an official notification declaring the state or a region within as a “disturbed area”, after which the centre can decide whether to send in armed forces.
- In a separate move, the government had relaxed the norms for foreign tourists to visit Nagaland, Manipur and Mizoram.
- The norms have been relaxed for a period of five years from April 1, 2018.
Tigers to dance in cyberspace this Onam
Paper:
Mains: General Studies-I : Indian Heritage and Culture, History and Geography of the World and Society.
Why in News:
Amidst the lockdown and restrictions of COVID-19 pandemic, Pulikkali will go online, on the fourth Onam Day.
Pulikkali
- Pulikkali is a recreational folk art from the state of Kerala.
- It is performed by trained artists to entertain people on the occasion of Onam, an annual harvest festival, celebrated mainly in Kerala.
- On the fourth day of Onam celebrations (Nalaam Onam), performers painted like tigers and hunters in bright yellow, red, and black dance to the beats of instruments like Udukku and Thakil.
- Literal meaning of Pulikkali is the ‘play of the tigers’ hence the performance revolve around the theme of tiger hunting.
- The folk art is mainly practiced in Thrissur district of Kerala.
- Shakthan Tampuran was who introduced Pulikkali, more than two centuries ago as a street art form.
Panel to review charter of DRDO labs
Paper:
Mains: General Studies-III: Technology, Economic Development, Bio diversity, Environment, Security and Disaster Management
Why in news?
With a focus on indigenous development of futuristic defence technologies, a five member expert committee has been constituted to review the charter of duties for all laboratories of the Defence Research and Development Organisation (DRDO).
Key Details:
- The committee was constituted by Dr. G. Satheesh Reddy, Secretary, Department of Defence Research and Development (DDR&D), who is also the Chairman, DRDO.
- Main focus is to study and review the charter of duties of all the labs of the DRDO
- To redefine the charter of duties of the labs on the current and futuristic defence and battlefield scenario,
- To minimise the overlap of technologies amongst the labs.
- The committee has to submit its report within 45 days.
Background:
- The last major review of DRDO was the P. Rama Rao committee of 2008, which had suggested that the DRDO be decentralised into seven technology clusters and focus be only on core technologies of strategic importance.
- The DRDO has a network of 52 laboratories working on a range of disciplines from aeronautics, armaments, electronics, combat vehicles, missiles, naval systems, life sciences and agriculture, among others.
- As part of the Atmanirbhar Bharat initiative of the government, the DRDO announced a list of 108 military sub-systems and components for development by the Indian industry only and the DRDO would provide support to industries for design, development and testing of these systems on a requirement basis.
‘India risks stagnation if GDP doesn’t grow over 8% annually’
Paper:
Mains: General Studies-III: Technology, Economic Development, Bio diversity, Environment, Security and Disaster Management
Why in News?
According to McKinsey Global Institute (MGI), India’s GDP needs to grow annually at 8-8.5% to create opportunities in the post COVID-19 era, and the country risks a decade of stagnating incomes and quality of life if urgent steps are not taken to spur growth.
Key Details:
- India’s GDP needs to grow annually at 8-8.5% to create opportunities in the post-COVID-19 era.
- India risks a decade of stagnating incomes and quality of life if urgent steps are not taken to spur growth.
- It said that urgent reforms are required with the aim of increasing productivity and creating jobs.
- MGI pointed out that the manufacturing and the construction sectors offer the most opportunities for economic growth and also for higher employment.
Urbanisation Trend:
- There will be 90 million additional workers in search of non-farm jobs by 2030.
- India will have to triple job creation to 12 million gainful non-farm jobs per year from the 4 million achieved between 2013 and 2018.
What can be done:
MGI opines that:
- Attention to manufacturing, real estate, agriculture, healthcare, and retail sectors.
- Unlocking land could reduce prices by up to a fourth.
- Creating flexible labour markets.
- Enabling efficient power distribution to reduce tariffs for consumers by over 20% and privatising 30 top state-run enterprises.
- It said reforms and streamlining fiscal resources can deliver $2.4 trillion in investment while boosting entrepreneurship by lowering the cost of capital for enterprises by about 3.5 percentage points.
- The report pushes for the creation of a bad bank to take care of dud assets (loans under stress).
- It added that a bulk of the reforms will have to be undertaken by the States (60%) and the remaining 40% by the Centre