CASTE CENSUS
A caste census is a comprehensive survey or data collection effort that aims to gather detailed information about the caste composition of a population. This typically involves:
- Counting individuals belonging to different caste groups
- Collecting socio-economic data related to caste categories
- Assessing the representation of various castes in different sectors
The caste system is particularly relevant in India, where it has historically played a significant role in social stratification. A caste census can provide insights into:
- Population distribution across caste groups
- Economic status of different castes
- Educational levels and employment patterns
- Representation in government jobs and political positions
In India, the last comprehensive caste census was conducted in 1931 during British rule. Since then, calls for a new caste census have been made periodically, with proponents arguing it would help in formulating more targeted welfare policies and ensuring equitable representation.
3. Why the Caste Census?
Historically, British India’s censuses from 1881 to 1931 recorded all castes. Post-Independence, the 1951 census excluded caste enumeration, except for SCs and STs, which continued to be recorded in every census. In 1961, the government allowed states to conduct their own OBC surveys and create state-specific OBC lists, as there were no central reservations for OBCs at that time
A caste census is essential for several reasons:
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Social Necessity: Caste remains a fundamental social framework in India. Inter-caste marriages were just 5% in 2011-12. Caste surnames and markers are common, residential areas are segregated by caste, and caste influences the selection of election candidates and cabinet ministers.
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Legal Necessity: Effective implementation of constitutionally mandated social justice policies, including reservations in elections, education, and public employment, requires detailed caste data. Despite the Constitution using the term 'class,' Supreme Court rulings have established caste as a significant criterion for defining a backward class, necessitating comprehensive caste-wise data to uphold reservation policies.
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Administrative Necessity: Detailed caste data helps correct wrongful inclusions and exclusions within reserved categories, prevents dominant castes from monopolizing reserved benefits, and is essential for sub-categorizing castes and determining the creamy layer's income/wealth criteria.
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Moral Necessity: The lack of detailed caste data has allowed a small elite among upper castes and dominant OBCs to disproportionately control the nation's resources, income, and power
There are several arguments against conducting a caste census:
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Social Division: Some argue that a caste census would exacerbate social divisions, although India's social hierarchies have existed for nearly 3,000 years, predating census efforts. Since 1951, counting SCs and STs has not led to conflicts among these groups. Moreover, India’s census already includes data on religion, language, and region, which are equally, if not more, divisive than caste. Ignoring caste in the census will not eliminate casteism any more than excluding religion, language, and region data will eradicate communalism and regionalism.
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Administrative Challenge: Some claim that a caste census would be administratively complex. However, unlike the concept of race, which can be ambiguous but is still counted in many countries like the U.S., caste identification in India is relatively clear. The government has successfully enumerated 1,234 SC castes and 698 ST tribes. Therefore, counting the approximately 4,000 other castes, most of which are specific to certain states, should not pose an insurmountable challenge.
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Increased Reservation Demands: Critics suggest that a caste census could lead to more demands for reservations. However, detailed caste data could actually help manage these demands more effectively by providing a factual basis for discussions. This would enable policymakers to address reservation claims more objectively, such as those from Marathas, Patidars, and Jats. In contrast, governments often prefer vague data because it allows them to make arbitrary reservation decisions for electoral gain
- The Constitution allows reservations for OBCs in education (Article 15(4)) and public employment (Article 16(4)), similar to SCs and STs. Following the Mandal Commission's recommendations, OBCs also benefit from reservations in the Central government and its undertakings. The Supreme Court's ruling in the Indra Sawhney case (1992) emphasized that the OBC list, originally based on the 1931 Census, should be updated regularly.
- Unlike SCs and STs, OBCs do not have reserved electoral constituencies for MPs and MLAs. However, the 73rd and 74th Constitutional amendments (1993) introduced reservations for OBCs in panchayats and municipalities (Articles 243D(6) and 243T(6)). To implement this effectively, detailed caste and area-wise Census data of OBCs is necessary, which the government should have collected in the 2001 Census but did not.
- When states like Uttar Pradesh, Madhya Pradesh, Gujarat, Maharashtra, Karnataka, Odisha, and Jharkhand attempted to implement OBC reservations in local elections, courts halted these efforts due to the lack of caste-wise OBC data. The judiciary demands this data to uphold reservations, while the executive has avoided collecting it.
- In contrast, the Supreme Court upheld the 10% reservation for economically weaker sections (EWS) among non-OBCs, SCs, and STs (mainly upper castes) in 2022 without empirical support. Given the EWS reservation, the Census should now include all castes, as it did until 1931.
- Though the Census is a Union subject, the Collection of Statistics Act, 2008, allows States and local bodies to collect relevant data. States like Karnataka (2015) and Bihar (2023) have conducted caste surveys, but Census data holds more authority and is less disputed. The government's reluctance to include caste in the Census is both legally indefensible and administratively imprudent
- After extensive lobbying by OBC leaders, Parliament unanimously resolved in 2010, with support from both Congress and BJP, to include caste enumeration in the 2011 Census. The last such enumeration was in the 1931 Census, which recorded 4,147 castes in India, excluding the depressed classes/untouchables.
- However, the Socio-Economic and Caste Census (SECC) of 2011 was poorly designed and executed, resulting in an absurd figure of 4.6 million castes, and its results were never released.
- The failure of SECC-2011 can be attributed to its conduct outside the framework of the Census Act, 1948, which was not amended to include caste as a parameter. Instead, it was managed by the Union Ministries of Rural Development and Urban Development, which lacked experience in conducting sociological surveys.
- Additionally, the questionnaire was poorly designed with open-ended questions about caste, causing confusion among enumerators who struggled to differentiate between genuine castes, alternative names, larger caste groups, sub-castes, surnames, clan names, and gotras. In contrast, Bihar's 2023 Caste Survey provided a list of 214 specific caste names, with a 215th category labeled "Other Castes," resulting in more accurate data.
- Despite the 2010 unanimous Parliamentary resolution, the Central government announced in 2021 that it would not include caste enumeration in the next Census.
- It maintained this stance before the Supreme Court in response to a case filed by the Maharashtra government seeking the inclusion of OBCs in the 2021 Census. The Supreme Court's dismissal of Maharashtra's plea in December 2021 is contentious, given its own previous rulings
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For Prelims: Socio-economic and caste census (SECC), Mandal Commission, Justice G Rohini's Commission, NITI Aayog, Article 341 and Article 342.
For Mains: 1. General Studies II: Welfare schemes for vulnerable sections of the population by the Centre and States and the performance of these schemes; mechanisms, laws, institutions and Bodies constituted for the protection and betterment of these vulnerable sections
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KALA AZAR
- Kala-azar, also known as visceral leishmaniasis or black fever, is a potentially deadly parasitic disease caused by protozoa of the Leishmania genus.
- The main species responsible for the disease are Leishmania donovani and Leishmania infantum. The disease is transmitted to humans through the bites of infected female sandflies, primarily of the genus Phlebotomus in the Old World and Lutzomyia in the New World.
- Kala-azar affects the internal organs, such as the liver, spleen, and bone marrow, leading to symptoms such as prolonged fever, weight loss, enlargement of the spleen and liver, and anemia.
- The name "kala-azar" translates to "black fever" in Hindi and refers to the darkening of the skin that can occur in some cases.
- The disease is endemic in certain regions of Africa, Asia, and South America, where conditions are favorable for the survival of the sandfly vector.
- Kala-azar can be a serious public health concern, especially in impoverished areas with limited access to healthcare. Treatment typically involves antimonial drugs, but drug resistance has been a concern in some regions.
- Efforts to control and eliminate kala-azar involve vector control measures, early diagnosis, and treatment of cases, as well as research into new treatment options and vaccines
- In 2020, over 90% of newly reported cases to the World Health Organization (WHO) were concentrated in ten countries: Brazil, China, Ethiopia, Eritrea, India, Kenya, Somalia, South Sudan, Sudan, and Yemen.
- Notably, Bangladesh achieved the distinction of being the first country globally to be officially recognized by the WHO for successfully eliminating kala-azar as a public health concern in October 2023. India is now tasked with maintaining its progress in the coming three years to attain WHO certification.
- As of October this year, India documented 530 cases and four fatalities attributed to the infection, representing a decline from 891 cases and three deaths in 2022. The figures for 2021 indicated 1,357 cases and eight deaths.
- Additionally, there were 286 reported instances of post-kala azar dermal leishmaniasis (PKDL) by October 2023. The complete cure of this skin condition is imperative, as it can serve as a reservoir for the parasite
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Prolonged Fever: Persistent and irregular bouts of fever that may last for weeks or months.
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Weight Loss: Unexplained and significant weight loss.
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Enlarged Spleen (Splenohepatomegaly): The spleen often becomes enlarged, leading to abdominal discomfort.
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Enlarged Liver: Hepatomegaly, or enlargement of the liver, can also occur.
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Anemia: Reduced red blood cell count, leading to fatigue, weakness, and pallor.
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Jaundice: Yellowing of the skin and eyes due to liver involvement.
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Swollen Lymph Nodes: Lymph nodes may become enlarged.
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Discoloration of the Skin: In some cases, the skin may darken, leading to the term "kala-azar" or black fever.
- Targeting the sandfly vectors that transmit the Leishmania parasites is a crucial aspect of the elimination program. This may involve the use of insecticide-treated bed nets, indoor residual spraying, and environmental management to reduce sandfly breeding sites
- Timely diagnosis and treatment of kala-azar cases are essential to prevent the spread of the disease. Access to accurate diagnostic tools and effective antiparasitic drugs is a priority
- Implementing surveillance systems to monitor the prevalence of kala-azar, track new cases, and assess the effectiveness of control measures is integral to the elimination program.
- Strengthening the capacity of healthcare systems, including training healthcare workers, improving laboratory facilities, and enhancing overall infrastructure, is vital for successful implementation.
- Involving communities in awareness campaigns, education, and active participation in control measures can enhance the program's effectiveness. Community engagement fosters cooperation, early reporting of cases, and adherence to preventive measures.
- Ongoing research into new treatment options, diagnostic tools, and potential vaccines is important for advancing the understanding of the disease and improving control strategies.
- Kala-azar often transcends national borders, so collaboration between neighboring countries is crucial to effectively address the movement of the disease and implement coordinated control measures
National Vector Borne Disease Control Program (NVBDCP) is a comprehensive public health initiative in India that focuses on the prevention and control of vector-borne diseases. The program is implemented by the Ministry of Health and Family Welfare, Government of India. While the specific details of programs may evolve, as of my last update, the NVBDCP primarily addresses diseases such as malaria, dengue, chikungunya, lymphatic filariasis, and kala-azar (visceral leishmaniasis).
Key components and activities of the National Vector Borne Disease Control Program include:
- The program involves the surveillance and monitoring of vector-borne diseases to track their prevalence, identify high-risk areas, and assess the effectiveness of control measures.
- Implementation of strategies to control the vectors responsible for transmitting diseases. This includes measures such as insecticide-treated bed nets, indoor residual spraying, larval control, and environmental management.
- Conducting awareness campaigns and health education programs to inform communities about preventive measures, early symptoms, and the importance of seeking medical care.
- Supporting research initiatives to improve the understanding of vector-borne diseases, develop innovative control methods, and enhance the overall effectiveness of disease prevention and control strategies.
India faces several vector-borne diseases, where the transmission of these diseases occurs through the bites of infected vectors such as mosquitoes, ticks, and sandflies. Some of the significant vector-borne diseases in India include:
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Malaria: Transmitted by Anopheles mosquitoes, malaria is a parasitic infection caused by Plasmodium parasites. It remains a major public health concern in various parts of India.
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Dengue Fever: A viral infection transmitted by Aedes mosquitoes, particularly Aedes aegypti. Dengue fever has periodic outbreaks in different regions of India.
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Chikungunya: Caused by the chikungunya virus and transmitted by Aedes mosquitoes, this disease leads to fever and severe joint pain. Outbreaks occur intermittently in India.
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Lymphatic Filariasis: Commonly known as elephantiasis, this disease is caused by filarial worms and transmitted by Culex mosquitoes. The National Filaria Control Program aims to eliminate this disease in India.
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Kala-azar (Visceral Leishmaniasis): Caused by the Leishmania parasite and transmitted by sandflies, kala-azar affects internal organs. The National Kala Azar Elimination Program works towards controlling and eliminating this disease.
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Japanese Encephalitis (JE): A viral infection transmitted by Culex mosquitoes, JE can lead to inflammation of the brain. Vaccination campaigns are conducted in endemic regions to prevent outbreaks.
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Zika Virus: Although not as widespread, the Zika virus can be transmitted by Aedes mosquitoes. Cases of Zika have been reported in some parts of India.
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Rickettsial Infections: Diseases like scrub typhus and spotted fever are caused by bacteria transmitted through the bites of infected mites and ticks
LEADER OF OPPOSITION (LoP)
- The Leader of the Opposition is the head of the largest party not in government in a parliamentary system. This person provides an alternative government and critiques government policies.
- They play a crucial role in maintaining checks and balances by leading the opposition's efforts to hold the government accountable.
- The position is recognized officially and often comes with certain privileges and responsibilities, such as attending important state functions and being involved in key parliamentary committees
- The Leader of the Opposition role was defined by the 1977 Act on Salary and Allowances. This person leads the largest opposition party in either the Lok Sabha or Rajya Sabha, recognized by the respective House's chair.
- They sit in the front row left of the Chair and partake in ceremonial duties, such as escorting the Speaker-elect.
- They represent the opposition in key government appointment committees and hold a rank equivalent to Union Cabinet Ministers and other high-ranking officials. Their main function is to voice the opposition's stance in the House
- The Leader of the Opposition occupies a front-row seat to the left of the Chair and holds certain ceremonial privileges, such as escorting the Speaker-elect and sitting in the front row during the President's address to Parliament.
- Their primary role is to articulate the opposition's views in the House. A 2012 parliamentary booklet describes the Leader of the Opposition in the Lok Sabha as akin to a "shadow Prime Minister," with a "shadow Cabinet" prepared to govern if necessary.
- This role is vital for the smooth functioning of parliamentary business, balancing governance and opposition
- The Leader of the Opposition serves as the opposition's representative on key committees led by the Prime Minister, involved in appointments for positions like the Director of CBI, Central Vigilance Commissioner, Chief Information Commissioner, and members of the National Human Rights Commission and Lokpal.
- From 2014 to 2019, as the Congress leader in the Lok Sabha, Kharge accused the government of attempting to exclude the opposition from the Lokpal selection process by arguing the absence of a designated Leader of the Opposition.
- In order of precedence, the Leaders of Opposition in Lok Sabha and Rajya Sabha come at No. 7, along with Union Cabinet Ministers, the National Security Advisor, the Principal Secretary to the PM, the Vice-Chairperson of the NITI Aayog, former PMs, and Chief Ministers
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For Prelims: Indian polity
For Mains: GS-II: Constitution and Polity
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CLASSICAL LANGUAGES
The Union Cabinet approved classical status for five languages earlier this month — Marathi, Bengali, Assamese, Pali, and Prakrit — by tweaking the criteria for the declaration.
- Classical Languages are languages that have a rich literary history, independent traditions, and a body of ancient literature. The Ministry of Culture grants the status of "Classical Language" based on specific criteria to recognize languages that have an extensive heritage and contributions to Indian civilization and culture
- Classical languages are regarded as the protectors of India's deep-rooted and ancient cultural legacy. They embody the rich histories, literature, and traditions of their respective communities.
- To recognize and preserve the linguistic achievements that reflect India's cultural diversity, the government bestows the status of "Classical Language" on certain languages. In October 2004, the government established a new category for such languages.
- Tamil became the first language to be awarded classical status on October 12, 2004, due to its antiquity and rich literary heritage. In November 2004, the Ministry of Culture, in collaboration with the Sahitya Akademi, formed the Linguistic Experts Committee (LEC) to assess the qualifications of languages proposed for classical status.
- On July 25 this year, the LEC unanimously updated the criteria for this status and recommended languages like Marathi, Pali, Prakrit, Assamese, and Bengali for consideration as Classical Languages
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Tamil (Declared in 2004)
- The oldest of the Dravidian languages with a history dating back over 2,000 years.
- Ancient works include the Sangam literature and the epic works like Silappatikaram.
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Sanskrit (Declared in 2005)
- One of the oldest Indo-European languages with texts like the Vedas, Upanishads, Ramayana, Mahabharata, and other classical texts.
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Kannada (Declared in 2008)
- A Dravidian language with a history of rich literary works, such as Kavirajamarga and Vachana Sahitya.
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Telugu (Declared in 2008)
- A Dravidian language with a rich tradition of poetry, drama, and classical literature, such as Nannaya Bhattu's Mahabharatam.
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Malayalam (Declared in 2013)
- Another Dravidian language, evolved from Tamil and Sanskrit, with classical works such as Manipravalam literature and Ramacharitam.
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Odia (Declared in 2014)
- An Indo-Aryan language with a rich history of literature dating back to the Madhusudan Das era and works like Sarala Mahabharata.
For a language to attain Classical Language status, it must fulfill a set of criteria established by government agencies like the Ministry of Culture in India. These criteria typically include:
- Antiquity: The language should have a long historical background, with early literary texts or traditions dating back at least 1,500 to 2,000 years.
- Rich literary tradition: The language must possess a significant body of literature, valued for its cultural, scholarly, or historical importance. This includes prose and poetic works, as well as epigraphical and inscriptional evidence.
- Independent tradition: The language should have a distinct literary tradition, separate from its current or later forms, and independent of external influences.
Initially, the Ministry of Home Affairs granted classical status to Tamil and Sanskrit. Subsequently, the Ministry of Culture took over the task of managing future recognitions and implementations.
| With the extension of the "Classical Language" status to languages like Marathi, Pali, Prakrit, Assamese, and Bengali, the total number of officially recognized classical languages has now reached 11. Previously, only six languages held this status: Tamil (declared in 2004), Sanskrit (2005), Kannada (2008), Telugu (2008), Malayalam (2013), and Odia (2014) |
5. Benefits fo Classical Languages
- Granting a language Classical Language status not only enhances its prestige but also supports initiatives aimed at promoting, preserving, and researching the language, ensuring its continued relevance in today's world.
- The recognition can also help the language tackle modern challenges such as digitalization and globalization.
- Classical Language status is expected to open up job opportunities in academic and research sectors. The processes of preservation, documentation, and digitization of ancient texts could create employment in areas such as archiving, translation, publishing, and digital media.
- The Ministry of Education actively promotes classical languages. For instance, in 2020, three central universities were established by an Act of Parliament to promote the Sanskrit language. Additionally, the Central Institute of Classical Tamil was created to assist with the translation of ancient Tamil texts and to offer courses in Tamil
6.New Classical Languages
- Marathi: Modern Marathi has its roots in Maharashtri Prakrit, a dialect spoken in western India and used as the official language by the Satvahanas. Some Marathi scholars argue that this was the earliest Prakrit language, though this is debated. The oldest evidence of Maharashtri Prakrit is a stone inscription from Pune district dating back to the 1st century BCE, while the earliest record of modern Marathi comes from a copper-plate inscription found in Satara, dated to 739 CE
- Bengali & Assamese: These languages trace their origins to Magadhi Prakrit, a dialect prominent in East India and the official language of the Magadha court. The precise period of their emergence is disputed, with scholars suggesting dates between the 6th and 12th centuries. They evolved into forms recognizable today only in the later part of the second millennium CE
- Prakrit: Rather than a single language, Prakrit refers to a group of related Indo-Aryan languages spoken by the masses, in contrast to Sanskrit, which was reserved for elites and high literature. Historian A.L. Basham noted in his book The Wonder that was India (1954) that by the time of the Buddha, people were speaking simpler languages compared to Sanskrit, and these were the Prakrits, with several dialects being documented
- Pali: Traditionally associated with Magadhi Prakrit, the term 'Pali' means "lines or series," referring to its use in Buddhist texts. Some modern scholars believe Pali is a mixture of various Prakrit languages, including some western dialects, with elements of Sanskrit. Pali is recognized as the language of the Theravada Buddhist canon, known as the Tipitaka ("three baskets"), which includes:
(i) Vinaya Pitaka: The "Discipline Basket," addressing the rules for the Buddhist monastic order (sangha).
(ii) Sutta Pitaka: The "Sayings Basket," the largest section containing Buddha's discourses, sermons, and religious poetry.
(iii) Abhidhamma Pitaka: The section that delves deeper into Buddhist philosophy
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For Prelims: Classical Languages, National Language For Mains: GS I - Art & Culture |
DRUG-RESISTANT TB
1. Context
2. About drugresistant TB
- As of 2017, India accounted for around one-fourth of the world's burden of multidrug-resistant (MDR) TB and of extensively drug-resistant (XDR) TB and extensively drug-resistant (XDR) TB.
- MDR TB resists treatment by at least two frontline drugs in TB treatment, isoniazid and rifampicin.
- XDR TB resists these two drugs, fluoroquinolones, and any second-line injectable drug.
XDR TB is rarer than MDR TB there were 1, 24, 000 cases of the latter in India (2021) versus 2, 650 cases of the former (2017). - TB incidence in India has been on the decline, but MDR TB and XDR TB endanger initiatives to locally eradicate the disease.
- In the first two years of the pandemic, there were reports that TB treatment was hit by disrupted supply chains, availability of healthcare workers for non-pandemic work, and access to drug distribution centres.
- A peer-reviewed 2020 study found that the incidence of MDR TB was "strongly correlated with treatment failure and spread through contact and not to treatment compliance".
3. Treatment for drug-resistant TB
- TB is an infection of the bacterium Mycobacterium tuberculosis in the lungs, but often in other organs as well.
- It can be treated by strictly adhering to the doses and frequencies of drugs prescribed by a physician.
- Deviations from this schedule can lead the bacteria to become drug-resistant.
- Yet they happen because the drugs often have side effects that diminish the quality of life and or because patients haven't been afforded access to the requisite drugs on time.
- Drugresistant TB is harder to treat. One important option for those diagnosed with pulmonary MDR TB is bedaquiline.
- In 2018, the World Health Organisation replaced two injectable drugs for MDR TB with an oral regimen that included bedaquiline.
- At this time, bedaquiline had not completed phase III Trials.
- The recommendation was based on smaller studies, outcomes in TB elimination programmes worldwide, the difficulty of treating MDR TB and close monitoring of patients receiving the drug.
4. Effectiveness of Bedaquiline
- Typically, bedaquiline needs to be taken for six months: at a higher dose in the first two weeks followed by a lower dosage for 22 weeks.
- This period is shorter than other treatment routines for pulmonary MDR TB, which can last 924 months.
- One phase II Clinical trial observed that culture conversion (turning a patient's sputum culture from positive to negative) "at 24 weeks was durable and associated with a high likelihood of response at 120 weeks", due to bedaquiline.
- Unlike Second-line treatment options that are injected and can have severe side effects, like hearing loss, bedaquiline is available as tablets and is less harmful, although it has potential side effects of its own.
- Studies until 2018 found that it could be toxic to the heart and the liver. This is part of why it is recommended only as a treatment of last resort.
- India's Health Ministry has guidelines for bedaquiline use as part of the Programmatic Management of MDR TB under the National TB Elimination Programme.
- The WHO's decision revitalised a debate about the ethics of making a much-needed but insufficiently tested drug available quickly versus lowering the safety threshold for pharmaceutical companies producing drugs for desperate patients.
5. Reasons for the rejection of the Patent application
- Both groups argued that J&J's method to produce a "Solid pharmaceutical composition" of bedaquiline is "obvious, known in the art" and doesn't require an "inventive step".
- According to the Indian Patent Act 1970 Section 2 (1) (ja), an "inventive step" is an invention that is "not obvious to a person skilled in the art".
- The latter also contended that the current application drew significantly from a previous patent, WO 2004/011436, which discussed a similar compound on which bedaquiline is based and whose priority date (2002) well preceded the new application.
- The Patent Office rejected the application on these and other grounds, including Sections 3d and 3e of the Act.
- These pertain to the "mere discovery of a new form of a known substance which does not result in the enhancement of the known efficacy of that substance" and "a substance obtained by a mere admixture resulting only in the aggregation of the properties of the components thereof", respectively, which are not patentable.
6. Significance of the rejection
- India has the largest population of people living with drug-resistant TB.
- J&J's patent on bedaquiline meant the drug cost $400 (revised to $340 in 2020) per person, plus the cost of other drugs.
- The rejection is expected to lower the cost of bedaquiline by up to 80 per cent.
- So far, the Indian government has directly procured and distributed the drug through Statelevel TB programmes.
- After July 2023, manufacturers of generic drugs such as Lupin will be able to produce generic versions of bedaquiline.
- The argument based on WO 2004/011436 is also relevant to "evergreening a strategy where a patent owner continuously extends their rights and or applies multiple patents for the same entity. Indian law disallows this.
For Prelims & Mains
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For Prelims: TB, Johnson & Johnson, bedaquiline, XDR TB, MDR TB, World Health Organisation, Indian Patent Act 1970,
For Mains:
1. How will Drug Resistant TB help the treatment of multidrugresistant tuberculosis? What are the costs and production implications? What is India’s target year to eliminate TB? (250 Words)
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Previous Year Questions
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Read the following passages and answer the question, your answers to these items should be based on the passages only. A majority of the TB infected in India are poor and lack sufficient nutrition, suitable housing and have little understanding of prevention. TB then devastates families, makes the poor poorer, particularly affects women and children, and leads to ostracisation and loss of employment. The truth is that even if TB does not kill them, hunger and poverty will. Another truth is that deep-seated stigma, lack of counselling, expensive treatment and lack of adequate support from providers and family, coupled with torturous side-effects demotivate patients to continue treatment - with disastrous health consequences. Which one of the following is the most logical, rational and crucial message conveyed by the above passage? (UPSC 2019)
Answer: 2 Curing TB requires more than diagnosis and medical treatment. |
NON PERFORMING ASSET (NPA)
A Non-Performing Asset (NPA) refers to a classification used by financial institutions, primarily banks, to categorize loans or advances that are in default or are in arrears on scheduled payments of principal or interest. In simpler terms, when a borrower fails to make interest or principal payments for a certain period of time, typically 90 days or more past the due date, the loan is classified as a non-performing asset.
NPAs are detrimental to banks and financial institutions as they indicate a risk of default and can lead to financial losses. These assets can hamper the lender's ability to generate income through interest and can also impact their capital adequacy and liquidity.
Financial institutions employ various strategies to manage and recover NPAs, such as restructuring loans, loan recovery processes, selling off bad debts to asset reconstruction companies, or writing off the non-recoverable amount from their books
3. NPA (Non-Performing Assets) –Classifications
Non-performing assets (NPAs) are classified based on the period for which the loan remains overdue and the likelihood of recovery. The classifications typically involve three categories:
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Substandard Assets: These are assets that have remained non-performing for less than or equal to 12 months. They are characterized by the bank or financial institution experiencing a potential loss if full repayment occurs. Substandard assets have a higher risk of turning into bad loans.
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Doubtful Assets: These assets have remained in the non-performing category for more than 12 months. There is a significant risk associated with these assets, where the full repayment of the loan is highly uncertain. However, there might still be some potential, albeit remote, for recovery.
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Loss Assets: When the assets' loss has been identified by the bank or financial institution or an external auditor, and these assets have very little chance of recovery, they are classified as loss assets. These assets are considered uncollectible and of such little value that their continuance as assets is not warranted, and the entire outstanding balance is written off.
These classifications are crucial for banks and financial institutions to assess the health of their loan portfolios and take appropriate measures to manage and mitigate risks associated with NPAs
Bank fraud and Non-Performing Assets (NPAs) are two distinct issues in the banking sector, although they can sometimes be interconnected.
Bank Fraud: Bank fraud involves deliberate deception or dishonest actions carried out by individuals or groups, intending to gain an unfair or unlawful advantage, causing financial loss to the bank or its customers. Fraud can take various forms, such as embezzlement, forgery, loan fraud, identity theft, money laundering, or manipulating financial statements. It's essentially a criminal act involving deceit, misrepresentation, or illegal activities that lead to financial losses for the bank.
Non-Performing Assets (NPAs): NPAs refer to loans or advances that have stopped generating income for the bank because the borrower has defaulted on repayment. When a borrower fails to pay interest or principal for a specified period, typically 90 days or more, the loan is classified as an NPA. NPAs can arise due to various reasons such as economic downturns, borrower insolvency, mismanagement, or inadequate risk assessment by the lending institution.
While these issues are distinct, there can be situations where bank fraud contributes to the creation of NPAs. For instance, if a fraudulent loan is issued based on false documents or misrepresented information, it might result in the borrower defaulting on payments, eventually turning the loan into an NPA
5. What are the impacts of Non-Performing Assets (NPA)
Non-Performing Assets (NPAs) can have significant impacts on banks, the economy, and the overall financial ecosystem.
Here are some of the key effects:
- NPAs erode a bank's profitability as they stop generating income through interest payments. This affects the bank's ability to lend further and impacts its overall financial health. A high level of NPAs can weaken a bank's capital base, affecting its ability to absorb losses and maintain stability
- Banks with high NPAs become cautious about lending, especially to risky sectors or borrowers, leading to a credit crunch. This restricted lending can hamper economic growth as businesses and individuals find it challenging to secure credit for expansion or investment
- High NPAs can dent depositor and investor confidence in the banking system. Customers might withdraw deposits or shift to more stable institutions, causing liquidity issues for the affected bank
- NPAs can have broader economic repercussions. When banks face financial strain due to NPAs, their ability to support economic growth through lending diminishes. This can affect employment, investments, and overall economic development
- Regulators monitor and impose stricter norms on banks with high levels of NPAs to ensure financial stability. Banks might face regulatory penalties or restrictions, impacting their operations and growth prospects
- Banks might need additional capital infusion to cover the losses arising from NPAs. This can strain the bank's resources or necessitate seeking external funding, impacting shareholders and overall financial planning
Controlling Non-Performing Assets (NPAs) is crucial for the financial health of banks and the stability of the financial system. Several measures can be implemented to manage and control NPAs effectively:
Prudent Lending Practices: Implementing robust credit appraisal and risk assessment mechanisms before disbursing loans can prevent potential NPAs. Thoroughly evaluating borrower creditworthiness, financial stability, and collateral can mitigate risks.
Early Detection and Monitoring: Early identification of potential NPAs is crucial. Banks should closely monitor repayment schedules and intervene at the first signs of distress. Timely action can prevent assets from slipping into the NPA category.
Loan Restructuring and Rescheduling: Offering viable borrowers alternative repayment structures can help them meet their obligations. Loan restructuring involves altering repayment terms, interest rates, or extending the tenure to make repayments more manageable.
Asset Quality Review (AQR): Conducting regular asset quality reviews helps in identifying stressed assets early on. This enables banks to take proactive measures to prevent assets from turning into NPAs.
Asset Reconstruction Companies (ARCs): Collaborating with ARCs allows banks to transfer NPAs to specialized entities that focus on recovering these assets. It helps banks clean up their balance sheets and concentrate on core operations.
Strengthening Recovery Mechanisms: Banks should have robust recovery mechanisms in place, including legal recourse and debt recovery tribunals, to expedite the recovery of NPAs. Effective recovery minimizes losses for the bank.
Loan Recovery through Securitization and Asset Sale: Selling NPAs to other entities or securitizing them can provide liquidity and reduce the burden on banks. However, this should be balanced with ensuring fair value realization.
Prudential Norms and Regulatory Compliance: Adhering to prudential norms set by regulatory authorities helps in maintaining healthy asset quality. Compliance with regulations ensures timely recognition and provisioning for NPAs.
Debt Recovery Tribunals (DRTs) and SARFAESI Act: Utilizing legal mechanisms like DRTs and the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act expedites the recovery process and acts as a deterrent against defaulting borrowers
7. Way forward
Implementing these measures collectively and consistently can aid in controlling NPAs, maintaining a healthy loan portfolio, and preserving the stability of the banking sector.
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For Prelims: Current events of Economy in Indian Scenario, RBI measurement to Control Non Performing Assets (NPAs) For Mains: General Studies III: Non Performing Asset (NPAs), Bad Bank |
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Previous Year Questions 1.Consider the following statements: Non-performing assets (NPAs) decline in value when (UPSC ESE 2018) 1. Demand revives in the economy. 2. Capacity utilization increases. 3. Capacity utilization, though substantive, is yet sub-optimal. 4. Capacity utilization decreases consequently upon merger of unit. Which of the above statements are correct? A.1, 3 and 4 only B.1, 2 and 4 only C.1, 2 and 3 only D.1, 2, 3 and 4 Answer (C) |
Source: Indianexpress
