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After writing off a huge amount of loans worth over Rs 10 lakh crore in the last five years, banks have been able to recover only 13 per cent of it so far.
The mega write-off exercise has enabled banks to reduce their non-performing assets (NPAs), or defaulted loans, by Rs 10,09,510 crore ($123.86 billion) in the last five years, according to data furnished by the Reserve Bank of India (RBI) in its reply to the Right to Information (RTI) request filed by The Indian Express.
Aided by this huge write-off, which would have been enough to wipe out 61 per cent of India’s estimated gross fiscal deficit of Rs 16.61 lakh crore for 2022-23, the banking sector reported a decline in gross NPAs to Rs 7,29,388 crore, or 5.9 per cent of the total advances, as of March 2022. Gross NPAs were 11.2 per cent in 2017-18.
Significantly, banks were able to recover only Rs 1,32,036 crore from the written off loans in the last five years, according to the RTI reply.
Once a loan is written off by a bank, it goes out from the asset book of the bank. The bank writes off a loan after the borrower has defaulted on the loan repayment and there is a very low chance of recovery.
Landmark deal at climate talks on funds for damage (Page no. 1)
(GS Paper 3, Environment)
The creation of a loss and damage fund, a key demand of the developing countries, was the lone bright spot in the final outcome of COP27, with countries at the Sharm el-Sheikh climate meeting settling for an extremely weak agreement that does little to strengthen the efforts to tackle the main cause of global warming.
There was nothing in the agreement that could lead to greater action on emissions reductions or mobilise greater financial or technological resources to fight climate change.
Efforts to inject some stronger provisions on emissions reductions at the last minute on Saturday night did not receive the consent of all parties.
A proposal to phase-down all fossil fuels, originally put forward by India and supported by a large number of countries, did not make it to the final agreement.
“In Glasgow, we saw a phase-down of coal (being incorporated into the agreement). At COP27, we needed to see an (agreement on) equitable and just phaseout of all fossil fuels.
A text that does not stop fossil fuel expansion, that does not provide progress from the already weak Glasgow Pact makes a mockery of the millions of people living with the impacts of climate change,” Zeina Khalil Hajj.
The developing countries, mainly the small island states were taking drawing comfort from the fact that one of their main demands at this conference, a new fund to help nations hit by climate disasters, had been met.
A mission thirty years in the making has been accomplished,” said the statement from the chairperson of the Association of Small Island States (AOSIS), a group of 39 small island and low-lying coastal developing states.
Editorial Page
The weight of the gravel (Page no. 8)
(GS Paper 2, International Organisation)
On the return flight from Bali, Prime Minister Narendra Modi’s suitcase contained a special object: The gavel of the G20 President.
It is the symbol of honour that comes with presiding over the world’s premier forum for global economic cooperation. But it also signifies responsibility and proffers an unprecedented opportunity for India’s leadership to shape the international response to pressing challenges.
This is the moment when India can step forward and transition from being a rule-taker to being a rule-maker.
Can India handle this mission successfully? It must. Given the overlay of geopolitics on the G20’s core agenda this year, it will fall on India to steer it away from rocky waters.
The task is difficult, and its first success will lie in reading the outcome of the Bali summit accurately and drawing the right lessons.
The Leaders’ Declaration, based on consensus, was an achievement in itself, as many feared that the grouping may fail to produce it.
Several features are of particular note, especially those on current political tensions, economic crises and climate change, among others.
Significantly, the backdrop of “unparalleled multidimensional crises” against which the summit took place was recognised upfront.
It is necessary to acknowledge the impact evident in the economic downturn, increasing global poverty and the delay in achieving the Sustainable Development Goals.
The G20’s instinct, therefore, was right to stay focused on securing long-term economic growth. The effort will continue to ensure food, fertiliser and energy security for all, especially the more vulnerable economies.
In particular, there was support for full implementation and continuation of the Black Sea Grain Initiative for good exports from Ukraine.
The Ideas Page
A reform, much ignored (Page no. 9)
(GS Paper 2, Polity and Governance)
There is a class of quasi-judicial agencies that are not discussed in conversations on the pendency of cases. These are generally handled by the revenue authorities and largely relate to land, tenancy, excise, arms, mining, or preventive functions under the Criminal Procedure Code.
There is a hierarchy among these fora and usual judicial procedures like appeal and revision can be made to superior authorities.
Decisions of superior courts are binding, especially that of the highest forum — for instance, the Board of Revenue in many states.
The procedures for handling these cases have been laid out in the Civil Procedure Code. Many of us have horror stories in this respect — cases remaining undecided for years.
The functioning of these bodies is of paramount importance as they deal with vital land and related issues. Their failure to administer speedy justice leads to harassment of citizens, besides abetting criminal activity by unscrupulous elements.
If we aim at the ease of living by citizens, not only do we have to ensure the reduction of licences and regulations but also make adjudication by administrative authorities timely, accessible and affordable.
The maladies that these agencies suffer from are far graver than judicial set-ups, as they are staffed by revenue authorities who have several other functions. Usually, many of these offices are understaffed.
Their engagement with duties such as law and order, protocol, coordination and other administrative functions leaves them with much less time for court work. Their access to court clerks and record keepers is limited.
Computers and video recorders are not available in many of these courts. Only a few states — such as Maharashtra, Madhya Pradesh and Rajasthan — have electronic platforms for supporting activities such as the filing of cases, publication of cause lists and sending summons.
Explained
Data Privacy: India & World (Page no. 10)
(GS Paper 2, Polity and Governance)
The new Digital Personal Data Protection Bill, 2022 released on Friday (November 18) is focused on personal data, as compared to an earlier unwieldy draft.
The reworked version of the legislation incorporates hefty penalties for non-compliance, but which are capped without any link to the turnover of the entity in question.
It has also relaxed rules on cross-border data flows that could bring relief to the big tech companies, alongside a provision for easier compliance requirements for start-ups.
There could be two potentially significant red flags: a near blanket exemption for government agencies from complying with some of the more onerous requirements under the Bill, and a dilution of the remit of the proposed Data Protection Board, which is mandated to oversee the provisions of the proposed legislation.
Officials at the Ministry of Electronics and IT (MeitY) have said the new draft strikes a delicate balance and factors in learning from global approaches, while staying aligned to the Supreme Court’s ruling on privacy as a fundamental right, but within reasonable restrictions.
While comparisons have been drawn with the EU’s landmark General Data Protection Regulation or GDPR — which, according to Graham Greenleaf, professor of Law & Information Systems at the University of New South Wales, has substantially influenced legislation in nearly 160 countries — the Government of India’s view sees its version of the Data Protection Bill as only one of the pieces that form part of its larger policy vision for the entire digital economy.
This larger policy includes a comprehensive digital India Act that would eventually replace the existing IT Act, the new data protection Bill that has just been unveiled, and the new telecom Bill that was put in the public domain last month.
MP law on declaring intention to convert illegal: what the HC said (Page no. 10)
(GS Paper 2, Polity and Governance)
In a decision that provided relief to interfaith couples seeking to marry, the Madhya Pradesh High Court restrained the state government from prosecuting “adult citizens if they solemnise marriage on their own volition” and violate Section 10 of the Madhya Pradesh Freedom of Religion Act (MPFRA), 2021.
After Kamal Nath’s Congress government was toppled and the BJP’s Shivraj Singh Chouhan returned as Chief Minister in March 2020, the state government announced its intention to curb religious conversions carried out solely for the purpose of marriage. On December 28 that year, a special meeting of the state Cabinet cleared the Madhya Pradesh Dharma SwatantrataAdhiniyam, 2020, a proposed law to tighten restrictions on religious conversions.
The new law was intended to replace the existing Madhya Pradesh Dharma SwatantryaAdhiniyam, 1968. The 1968 law faced a challenge in the High Court, but it had been upheld by the Supreme Court in 1977.
An ordinance was promulgated on January 7, 2021, and, two months later on March 8 last year, the Madhya Pradesh Freedom of Religion Act, 2021 was passed by voice vote amid slogans of Jai Shri Ram in the state Assembly.
With the passage of the Act, Madhya Pradesh became the third BJP-ruled state after Himachal Pradesh and Uttar Pradesh to bring a law to punish religious conversions for marriage.
Section 5 of the MPFRA, 2021 prohibits unlawful conversion from one religion to another by use of misrepresentation, force, undue influence, coercion, any other fraudulent means, allurement, or promise of marriage.
Violators face between one year and five years of imprisonment. If the person who is converted is a child, a woman, or a person belonging to a Scheduled Tribe or Scheduled Caste, the punishment varies from two years to 10 years, with a fine of 50,000. The punishment for mass conversions is five to 10 years in prison, with a penalty of Rs 1 lakh.
Cases under the Act are cognizable (which means an arrest can be made without a warrant) and non-bailable. Complaints can be registered by the victim, the victim’s parents or siblings, or anyone else including a guardian with permission from the local court. The complaint will be investigated by a police officer of the rank of sub-inspector and above.
For a religious conversion to be valid, the law requires a 60-day prior “declaration of the intention to convert” to the district magistrate by the individual as well as the priest carrying out the conversion.
Economy
MapMyIndia seeks level playing field with Google (Page no. 11)
(GS Paper 3, Science and Technology)
Domestic device manufacturers and app makers may have got relief from the Competition Commission (CCI) against Google’s monopolistic practices in the Android space, but homegrown MapMyIndia, which works on geospatial data, continues to seek a level playing field with the US tech giant on the usage of satellite imagery.
Indian government’s regulations put a limit on domestic companies working with geospatial data with regard to satellite imagery, but as Google is a US company, it is free from such restrictions.
“Private companies in India using satellite imagery for either consumer or enterprise use cases cannot put out imagery finer than one-metre resolution.
However, Google Maps does not comply with this directive and offers even finer and crisper resolution on their maps to consumers, making this regulation a grey area.
This way Google is able to offer fine imagery on its apps, which we are not able to do, and this is definitely not a level playing field,” Rohan Verma, CEO and executive director.
MapMyIndia offers multiple, digital mapping, navigation, and geospatial tech offerings and currently has a client base of 2,000 enterprise customers.
From 1995 to 2004, we were primarily in the B2B space selling tech to large corporates, especially in FMCGs like Coca-Cola and Marico.
But 2004 is when we launched our consumer internet mapping platform which was India’s first interactive mapping platform. But building a consumer-facing digital map is a tough business and it took us 10 years to cover a majority of the country.
The company currently earns majority of its revenue from enterprise customers across three major categories — corporate, automotive, and government.
In addition, MapMyIndia also offers professional-grade maps and products directly to retail customers through the Mappls app and GPS IoT-enabled gadgets and devices.