current-affairs-based-mains-drill-24-august-2020

 

Q.1) The tussle between India’s treasury and its central bank is as old as the central bank itself. In this context, discuss the issues and measures to resolve conflicts between the Union government and the Reserve Bank of India(RBI). (15 marks - 250 words)

Why this question? - The tussle between India’s central bank and the government of India  has reignited the debate on central bank autonomy in India. 

Intro - A brief about the RBI Act, 1934 and how it led to the creation of an independent and autonomous central bank.

Body - 

  • Functioning of RBI.
  • Issues that are leading to conflict between the government and RBI.

Way ahead - Examining the role of RBI by creating a high-powered commission to help legislate a constitutionally independent federal RBI. 

Conclusion - Summarize based on above discussion.

 

Q.2) Reversing history selectively can destabilise India-Nepal relations and may have irretrievably negative consequences for the most exemplary inter-state relationship of South Asia. Comment (15 marks - 250 words)

Why this question? - In a time when India-Nepal relations are going through a bad phase, India should do everything to nurture the Nepali people’s goodwill, while rejecting Nepal's ill-conceived territorial claims simultaneously.

Intro - A brief about India-Nepal ties.

Body - Recent developments in the relations and challenges they are posing.

Way ahead - Respecting original negotiations, strengthening people to people ties.

Conclusion - Summarize based on above discussion.

 

Q.3) Today, the GST Council is plagued by a trust-deficit, while the IBC has been hit by judicial pendency.  If GST and IBC could be reformed, it would help the economy. Discuss. (15M, 250 Words)

Why this question?

  • Late Mr. Aun Jaitly played a particularly important role in two critical reforms-IBC and GST. Today is his death anniversary.

Introduction:

  • Mention briefly about IBC and GST reforms

Body: Issues and concerns with GST and IBC

  • GST issues
    • Delayed compensation
  • The Covid-19 pandemic 
  • Collections not growing at the rate of compensation
  • Bad loan crisis: More than 2.4% of total loans in India’s banking system were under stress on top of the 9.6?ddebt ratio as of June, 2019 the highest among major economies.
  • Judicial pendency under IBC

Conclusion: Suggest a way forward on following lines:

  • Resolving the compensation issue immediately
  • Simplifying the GST rate structure:
  • Revamping the IBC, by allowing promoters (except wilful defaulters) to be part of the resolution process. 
  • Creating Bad Banks