27, March 2019 27/03/2019 – Posted in: Daily News – Tags: , , , , , , , , , , , , , , ,

Beijing claims Arunachal Pradesh as part of South Tibet

 

News Flash

China has destroyed nearly 30,000 world maps printed in the country for not showing Arunachal Pradesh and Taiwan as part of Chinese territory.

 

India-China border disputes

Two main Issues

  • First, Aksai Chin is located either in the Indian province of Jammu and Kashmir or the Chinese province of Xinjiang and forms part of the Kashmir conflict.
  • The other disputed territory lies south of the McMahon Line. It was formerly referred to as the North East Frontier Agency, and is now called Arunachal Pradesh. The McMahon Line was part of the 1914 Simla Convention between British India and Tibet, an agreement rejected by China.

 

Taiwan-China political status

The controversy regarding the political status of Taiwan (Taiwan Issue or Taiwan Strait Issue) as the Mainland Issue, is a result of the Chinese Civil War and the subsequent split of China into the two present-day self-governing entities of the People’s Republic of China (commonly known as “China”) and the Republic of China (commonly known as Taiwan).

 

Agreements to resolve India-China border disputes

Shimla Agreement of 1914

  • A convention was held at shimla in 1914 to demarcate the dispute between Tibet, China and British India.
  • Proposal of Mcmohan line was agreed by Shimla convention, as the legal boundary between India and china.
  • Later, China rejects the shimla agreement.

 

Panchsheel Agreement of 1954

  • The “Agreement on Trade and Intercourse between the Tibet region of China and India” was signed on 29th April 1954 in Beijing by the Indian Ambassador N. Raghavan and Chang Han-fu, the Chinese Deputy Foreign Minister of China. It is remembered as the Panchsheel Agreement.
  • The Panchsheel agreement indicated the willingness to ‘Respect each other’s sovereignty and territorial integrity’.

 

Other issues between India and China

  • China opposing India’s entry into the United Nations Security Council (UNSC) and in the Nuclear Supplier’s Group (NSG).
  • India’s opposition to the OBOR (One Belt One Road initiative)

Source: Indian Express

 

 

Global Energy Transition Index 2019

 

News Flash

The Global Energy Transition index 2019 report has been released by Geneva based-World Economic Forum (WEF).

  • India rank 76th on a global energy transition index among 115 economies.
  • India has scored low in terms of system performance (ranking 97 and 86, respectively), it ranks considerably higher when it comes to readiness (45 and 61, respectively).

 

Findings

  • Sweden remains on the top on this annual list and is followed by Switzerland and Norway in the top three.
  • India is amongst the countries with high pollution levels and has a relatively high CO2 intensity in its energy system.
  • China is ranked even lower than India at 82nd position.
  • India is the only amongst the five economies to improve its rank since last year.
  • India is the second best in the BRICS block of emerging economies, with Brazil being the best at 46th place globally.
  • The United Kingdom (UK) is ranked seventh and Singapore has been ranked thirteenth, while Germany, Japan and the US have bagged the seventeenth, eighteenth and the twenty-seventh place respectively.
  • Malaysia is ranked highest at 31st, Sri Lanka is 60th, Bangladesh 90th and Nepal 93rd.

 

World Economic Forum

  • The World Economic Forum is the International Organization for Public-Private Cooperation.
  • It was established in 1971 as a not-for-profit foundation and is headquartered in Geneva, Switzerland.
  • The Forum’s mission is cited as “committed to improving the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas”

Source: The Hindu Businessline

 

 

Congress’ proposal & BJP’s political stunt

 

News Flash

As per Paris-based world inequality Lab released a comparitive study of the promises that BJP and Congress have made in 2019:

  • The Congress’ proposal of minimum income scheme of Rs 6,000 to the least poorest 20 percent, can be best presented with “increasingly dynamic tax collection,” which could incorporate a wealth tax on the rich
  • BJP’s 10 per cent quota for the poor in the General Catgeory is a “political stunt.

 

Fiscal implications

Congress proposal

  • Rs 72,000 annual income guarantee as Rs 2.9 trillion (1.3% of GDP).
  • A 2 per cent tax on total wealth on households owning more than Rs 2.5 crore of wealth.

 

NDA 10 percent quota

  • On the income threshold, more than 93 per cent of households are eligible and on the current agricultural land holding metric, 95 per cent are, and going by residential ownership, 80 per cent of the population is eligible.

 

The Chancel-Bharti report

  • The social expenditure on health and education must continue with this basic minimum income offered to the poor.
  • Otherwise, “a minimum income scheme that would replace existing social spending can have negative consequences in terms of social justice.

 

The Annual Wealth Check report 2019  of Oxfam in Indian Context

  • The top 1% of India’s richest lot got richer by 39% as against just 3% increase in the wealth for the bottom half of the population.
  • 6 Crore Indians who make up the poorest 10 per cent of the country, continued to remain in debt since 2004.
  • The wealth of the Indian billionaires witnessed an increase by Rs 2,200 crore a day last year.
  • In many countries including India, a decent education or quality healthcare has become a luxury only the rich can afford.
  • Children from poor families in India are three times more likely to die before their first birthday than children from rich families.

Source: Indian Express

 

 

India Pride Project

 

News Flash

The Indian government is marking its protest against the ongoing auctions in the United Kingdom of artefacts belonging to the 18th century Mysore ruler Tipu Sultan. The items, likely to be worth millions of pounds, include a flintlock gun, swords and an ornate golden betelnut casket.

Indian heritage activist S. Vijay Kumar has questioned this auction process. S Vijay Kumar is the founder of India Pride Project.

 

About Project

It is a volunteer-network spread across the globe, that tracks and brings back India’s stolen heritage. We also build awareness about the issue, so citizens and officials understand why this is crucial to India from a geo-political perspective. It was founded in 2014.

According to an estimate by the India Pride Project some 70,000 artefacts are currently missing from India. Of these, 4,900 are in museums and countries that are likely to cooperate with repatriation efforts, while 60 are immediately recoverable. Much of this theft had been made possible because of the laxity of the Archaeological Survey of India in safeguarding these monuments. Once stolen, these goods enter well-established international smuggling chains, and are hard to recover because of the lack of poor documentary and photographic records.

Source: The Hindu

 

 

 

Implementation of the Indian Accounting Standards

 

News Flash

The Reserve Bank of India postponed the implementation of the Indian Accounting Standards (Ind AS) norms for banks indefinitely, citing the need for amendments to be made by the government to the relevant banking laws.

 

What it is

These are norms in order to bring Indian accounting standards in line with international standards.The RBI had initially planned to implement the norms starting April 1, 2018.

 

Indian Accounting Standard (Ind-AS)

Indian Accounting Standard is the Accounting standard adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977. ASB is a committee under Institute of Chartered Accountants of India (ICAI) which consists of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI, etc.

 

Provisions

  • Financial institutions like banks will have to calculate expected credit losses (ECL) on their loans during each reporting period and make necessary adjustments to their profit-and-loss account even before a borrower may default on a certain loan.
  • After prematurely recognising losses on their loans banks have to build up the necessary underlying capital required to overcome the impact of such losses. At present banks incur credit losses in their books only after Indian Accounting Standard (abbreviated as Ind-AS) is the Accounting standard adopted by companies in India and issued under the supervision of Accounting Standards Board (ASB) which was constituted as a body in the year 1977. ASB is a committee under Institute of Chartered Accountants of India (ICAI) which consists of representatives from government department, academicians, other professional bodies viz. ICAI, representatives from ASSOCHAM, CII, FICCI, etc. outstanding loans have been in a state of default over a certain number of days as stated in the rules laid down by the RBI.

 

Why banks trying to avoid the implementation:

  • Banks have to show losses and accordingly arrange for the capital required to balance it.
  • Banks will have to improve their ability to forecast future credit losses with precision.
  • The new norms will cause more outstanding loans to be added to the huge existing pile of bad loans and cause further headaches to the government.
  • According to estimates made by India Ratings & Research, public sector banks would have to make additional provision of over a trillion rupees if the norms are adopted right away.

 

 

 

New rules governing human clinical trials

 

News Flash

India has notified new rules governing human clinical trials. The New Drugs and Clinical Trial Rules, 2019 address several concerns of both the pharmaceutical industry and patient-rights’ groups.

 

Main Provisions

  • All trial applications will now have to be cleared by the drug controller within 90 days.
  • Local trials will be waived for drugs that have already undergone testing in select countries like the U.S. and Japan.
  • For patients provision of post-trial access to investigational drugs means trial participants can continue receiving the drug free-of-cost even after the trial ends.

 

Benefits

  • Boost the clinical research industry.
  • Affordable drugs for masses.

But health activists, who wanted mandatory compensation for all injured participants are not happy with the provisions of compensations.

Source: The Hindu

 

 

 

Enforcement Directorate and Prevention of Money Laundering Act

 

News Flash

The Enforcement Directorate arrested a defence agent, Sushen Mohan Gupta, from Delhi in the ₹3,600-crore VVIP choppers deal case, under the Prevention of Money Laundering Act.

Prevention of Money Laundering Act, 2002 is an Act of the Parliament of India enacted by Indian government to prevent money-laundering and to provide for confiscation of property derived from money-laundering.PMLA and the Rules notified there under came into force with effect from July 1, 2005. The Act and Rules notified there under impose obligation on banking companies, financial institutions and intermediaries to verify identity of clients, maintain records and furnish information in prescribed form to Financial Intelligence Unit – India (FIU-IND).

Following amendments have been made in the Prevention of Money laundering Act, 2002 (PMLA) through Finance Act 2018. The major amendments proposed are as follows:

Measures to enhance effectiveness of PMLA

  1. Amendment in definition of “proceeds of crime” :The definition of “proceeds of crime” in PMLA was amended in 2015 to include “property equivalent held within the country” in case proceeds of crime is taken out or held “outside the country”. The present amendment shall allow to proceed against property equivalent to proceeds to crime held outside the country also.
  2. Amendment in bail provisions: Amendment proposed in Section 45(1) would make the applicability of bail conditions uniform to all the offences under PMLA.

Further limit of Rs.one crore shall allow court to apply bail provisions more leniently to less serious PMLA cases.

  1. Corporate frauds included as Scheduled offence:Section 447 of Companies Act is being included as scheduled offence under PMLA so that Registrar of Companies in suitable cases would be able to report such cases for action by Enforcement Directorate under the PMLA provisions. This provision shall strengthen the PMLA with respect to Corporate frauds.
  2. Proposed amendment gives 90 days more for investigation to ED, before prosecution is filed.
  3. Clear guidelines to share the information relating to contraventions of other laws noticed during investigation by ED, with concerned authorities under the said Acts. This shall enable exchange of information among agencies and enhance effectiveness of efforts against black money.
  4. Measures for restoration of property of persons adversely affected by PMLA investigation

Present amendment allows Special Court, if it thinks fit, to consider the claims of the claimants for the purposes of restoration of such properties even during trial also, in such manner as may be prescribed.

Source: The Hindu

 

 

Enforcement Directorate

 

The origin of this Directorate goes back to 1st May, 1956, when an ‘Enforcement Unit’ was formed, in Department of Economic Affairs, for handling Exchange Control Laws violations under Foreign Exchange Regulation Act, 1947 (FERA ’47).

In the year 1957, this Unit was renamed as ‘Enforcement Directorate’. The administrative control of the Directorate was transferred from Department of Economic Affairs to Department of Revenue in 1960. With the passage of time, FERA’47 was repealed and replaced by FERA, 1973

Investigate contraventions of the provisions of Foreign Exchange Management Act, 1999(FEMA) which came into force with effect from 1.6.2000. Contraventions of FEMA are dealt with by way of adjudication by designated authorities of ED and penalties upto three times the sum involved can be imposed.

 

Functions 

  • Investigate offences of money laundering under the provisions of Prevention of Money Laundering Act, 2002(PMLA) and to take actions of attachment and confiscation of property if the same is determined to be proceeds of crime derived from a Scheduled Offence under PMLA, and to prosecute the persons involved in the offence of money laundering.
  • Processing cases of fugitive/s from India under Fugitive Economic Offenders Act, 2018. The objective of this Act is to provided for measures to deter fugitive economic offenders from evading the process of law in India by staying outside the jurisdiction of Indian Courts and to preserve the sanctity of the rule of law in India.
  • Sponsor cases of preventive detention under Conservation of Foreign Exchange and Prevention of Smuggling Activities Act, 1974(COFEPOSA) in regard to contraventions of FEMA.
  • Render cooperation to foreign countries in matters relating to money laundering and restitution of assets under the provisions of PMLA and to seek cooperation in such matters.

 

 

 

No two time zones, 30 minutes extra to help the North East

 

News Flash

Senior researchers found a solution to a long pending demand of creating two time zones in the North East of the country. They suggest advancing the Indian Standard Time (IST) by 30 minutes to reduce problems.

They also said that having two different time zones could lead to confusion, possibility of accidents and a likelihood of “misuse as a political means to divide the country”.

 

Why NE demanding a separate time zone

North East has been demanding a separate time zone that would increase daylight savings and efficiency. An early sunrise means that by the time they start their day, almost half the day has passed. This also translates into an early sunset which requires extra use of lights in both homes, offices and in public places cramping productivity and escalating energy costs.

Source: Indian Express

 

 

Aadhaar Payment Bridge System (APBS)

 

News Flash

Aadhaar Payment Bridge (APB) System, one of the unique payment systems implemented by NPCI, uses Aadhaar number as a central key for electronically channelizing the Government benefits and subsidies in the Aadhaar Enabled Bank Accounts (AEBA) of the intended beneficiaries.

Instead of having to provide multiple account details (say, her name, bank account number and IFSC code) to receive a bank transfer, she only has to provide her Aadhaar number.

 

Issues with (APBS)

  • Diverted payments have become a widespread problem in recent years, not so much for the middle class as for powerless people such as old-age pensioners and Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) workers. As they are unable to understand the working of the system.
  • Many Jan Dhan Accounts were superfluous and created a confusing multiplicity of accounts and Aadhaar numbers were seeded into these accounts without proper verification.
  • To tackle the unreliable seeding of the accounts compulsory “e-KYC” ultimatum was given to the unverified account holders and people’s accounts were blocked when they missed the deadline. Compulsory e-KYC created problems for poor people, people because :
  • Some did not know what they were supposed to do
  • Others had problems of biometric authentication
  • Others still struggled with inconsistencies between the Aadhaar database and the bank database.

A recent study of the Indian School of Business (ISB), based on an analysis of more than 10 million payments in 2014-18, concludes that 38% of all the APBS payments of MGNREGA wages in Jharkhand “redirect wages to a completely unrelated account”.

 

Other Issues 

  • Problems of rejected Payments.
  • Agencies that are promoting the APBS and related financial technologies are not paying any attention to these problems so that the corrective measurements can be taken.

Source: The Hindu