Syllabus:  GS-II, Polity and Governance; GS-II, Social Justice;

Subject: Social Justice;

Topic: Mechanisms, Laws, Institutions and Bodies constituted for the protection and betterment of these vulnerable sections;

Issue: PwD act, 2016;

Context: People with blood disorders such as thalassemia, haemophilia and sickle cell disease are not eligible for reservation in government jobs under the Persons with Disabilities category, the Social Justice Ministry told Parliament.

Synopsis:

• Government directive: Minister of State for Social Justice Pratima Bhoumik said that under Section 34 of the law, “persons with blood disorders including Thalassemia are not eligible for reservation in jobs in government establishments”.
• Concerns of the activists: The three diseases were included on the list of disabilities under the Right to Persons with Disabilities Act of 2016, which had led activists to believe at the time that benefits such as reservation would follow.
  • Activists say it defeats the entire purpose of having included them on the list.

Background:

About Right to Persons with Disabilities Act of 2016:

• The Act replaces the Persons with Disabilities (Equal Opportunities, Protection of Rights and Full Participation) Act, 1995. It fulfills the obligations to the United National Convention on the Rights of Persons with Disabilities (UNCRPD), to which India is a signatory.
• Define disability: According to the Rights of Persons with Disabilities (RPwD) Act, 2016, Disability has been defined based on an evolving and dynamic concept.

Salient features of the Act:

Disabilities covered:-

• Physical Disability – Locomotor Disability; Leprosy Cured Person; Cerebral Palsy; Dwarfism; Muscular Dystrophy; Acid Attack Victims; Visual Impairment (Blindness; Low Vision); Hearing Impairment (Deaf; Hard of Hearing); Speech and Language Disability.
• Intellectual Disability – Specific Learning Disabilities; Autism Spectrum Disorder.
• Mental Behaviour – Mental Illness
• Disability caused due to – Chronic Neurological Conditions (Multiple Sclerosis; Parkinson’s disease); Blood Disorder (Haemophilia; Thalassemia; Sickle Cell Disease) and other Multiple Disabilities.
• Persons with benchmark disabilities are defined as those certified to have at least 40% of the disabilities specified above.

Rights and entitlements

• Responsibility has been cast upon the appropriate governments to take effective measures to ensure that the persons with disabilities enjoy their rights equally with others.
• Additional benefits: such as reservation in higher education (not less than 5%), government jobs (not less than 4 %), reservation in allocation of land, poverty alleviation schemes (5% allotment) etc. have been provided for persons with benchmark disabilities and those with high support needs.
• Every child with benchmark disability: between the age group of 6 and 18 years shall have the right to free education.
• Government funded educational institutions: as well as the government recognized institutions will have to provide inclusive education to the children with disabilities.
• For strengthening the Prime Minister’s Accessible India Campaign, stress has been given to ensure accessibility in public buildings (both Government and private) in a prescribed time-frame.

Source: The Hindu

Syllabus:  GS-II, Polity and Governance;

Subject: Polity and Governance, Economy;

Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment;

Issue: State borrowing provisions, NPS;

Context:  States may be able to tap about ₹2.04 lakh crore as additional borrowings over and above their net borrowing limits for the year, the Finance Ministry indicated on Tuesday.

Synopsis:

• Extra borrowing: The Centre had allowed 22 States to raise additional borrowings of almost ₹61,000 crore this year on top of their net borrowing ceilings of 3% of Gross State Domestic Product (GSDP).
• Eligibility: The extra borrowing ceiling was granted to States who met their pension liabilities by making required contributions to the National Pension System (NPS), which oversees the retirement savings of government employees since 2004.
  • Moreover, States are eligible to raise a little more than ₹1.43 lakh crore this year, based on the recommendations of the Ministry of Power.
• Performance based incentive: This is linked to the Fifteenth Finance Commission’s (FFC) suggestion to grant States an additional borrowing space of 0.5% of GSDP as a performance-based incentive for carrying out reforms in the power sector that improve operational and economic efficiency.

Background:

About National Pension Scheme:

• National Pension System (NPS) is a pension cum investment scheme launched by Government of India to provide old age security to Citizens of India.
  • It brings an attractive long term saving avenue to effectively plan your retirement through safe and regulated market-based return.
• The Scheme is regulated by Pension Fund Regulatory and Development Authority (PFRDA).
• National Pension System Trust (NPST) established by PFRDA is the registered owner of all assets under NPS.

Key Features of the NPS:

• Contributions: Subscribers make regular contributions to their NPS account during their working years. These contributions accumulate and grow over time.
• Investment Options: The NPS offers two investment options: a) Auto Choice: where the funds are invested based on the subscriber’s age, and b) Active Choice: where the subscriber can select the asset classes (equity, corporate bonds, and government securities) and the fund manager.
• Portable Account: The NPS account is portable, allowing subscribers to maintain their account even if they change jobs or locations.
• Withdrawal Options: Upon retirement, subscribers have the flexibility to withdraw a portion of their accumulated corpus as a lump sum and use the remaining amount to purchase an annuity, which provides a regular pension income.
• Tax Benefits: NPS offers tax benefits at different stages. Contributions made by subscribers are eligible for tax deductions under Section 80C, while withdrawals are subject to certain tax exemptions.
• Regulated and Transparent: The NPS is regulated by the PFRDA, ensuring transparency and oversight of the scheme. It follows strict investment guidelines and has mechanisms in place to safeguard the interests of subscribers.
• Wide Coverage: The NPS is available to all Indian citizens, including salaried employees, self-employed individuals, and non-resident Indians (NRIs).

Source: The Hindu

Syllabus:  GS-III, Economy;

Subject: Economy;

Topic: Indian Economy, Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment;

Issue: RBI guidelines on AIF;

Context: The Reserve Bank of India has tightened norms for lenders relating to making investments in units of Alternative Investment Funds (AIFs) to address concerns relating to possible ever-greening of stressed loans.

Rationale Behind the Move:

• Investment Practices: Regulated Entities (REs) often invest in units of AIFs as part of their regular investment operations.
• Substitution of direct loan exposure: The RBI noted certain transactions involving AIFs that substituted direct loan exposure with indirect exposure, raising regulatory concerns.
• Curb ever-greening of loans: has introduced tighter norms for Regulated Entities (REs) to curb the practice of ever-greening loans through investments in Alternative Investment Funds (AIFs).

RBI’s New Guidelines:

• Restriction on Investments: REs are prohibited from investing in any AIF scheme that indirectly or directly has downstream investments in a debtor company of the RE.
• Liquidation provisions: If an AIF scheme, where an RE is already an investor, makes a downstream investment in a debtor company, the RE must liquidate its investment in the scheme within 30 days from the date of such investment by the AIF.
• Provision for Existing Investments: For existing investments in such schemes, REs have 30 days from the issuance of the circular to liquidate.
  • Failure to do so requires them to make a 100% provision on these investments.
• Capital Fund Deductions: Investments by REs in subordinated units of any AIF scheme with a ‘priority distribution model’ are subject to full deduction from the RE’s capital funds.

Background:

About Alternative Investment Funds (AIFs):

• Definition: AIFs are privately pooled investment vehicles established in India, collecting funds from sophisticated investors for investing.
• Regulation: Governed by the SEBI (Alternative Investment Funds) Regulations, 2012.
• Formation: Can be formed as a company, Limited Liability Partnership (LLP), trust, etc.
• Investor Profile: Aimed at high rollers, including domestic and foreign investors in India. Generally favoured by institutions and high net worth individuals due to high investment amounts.
• Categories of AIFs:
  • Category I: Invests in start-ups, early-stage ventures, SMEs, etc. Includes venture capital funds, angel funds, etc.
  • Category II: Includes funds not in Category I/III, like real estate funds, debt funds, etc. No leverage or borrowing except for operational requirements.
  • Category III: Employs complex trading strategies, may use leverage. Includes hedge funds, PIPE Funds, etc.
• Fund Structure: Category I and II AIFs must be close-ended and have a minimum tenure of three years.
• Category III AIFs can be open-ended or close-ended.

Source: The Hindu