Daily Prelims Notes 24 May 2023

Daily Prelims Notes

24 May 2023

Table Of Contents

1. How the World Health Organization could fight future pandemics
2. CJI Chandrachud condemns ‘forum shopping’: What is this practice?
3. UPI: Factors for success, impact
4. Payment Banks 2.0: Search for growth and new income stream
5. COVID-19 genomics body INSACOG has not put out weekly bulletin since March 27
6. Digital Census and Self-enumeration through NPR Update
7. Parliament buildings and Constitutional provisions
8. CAG team works to increase synergy among ministries

1. How the World Health Organization could fight future pandemics

Subject: International Relations

Section: International Organization

Context: Negotiations on new rules for dealing with pandemics are underway at the World Health Organization (WHO), with a target date of May 2024 for a legally binding agreement to be adopted by the U.N. health agency’s 194 member countries

‘Zero-draft’ of the pandemic treaty:

• The World Health Organization’s (WHO) Intergovernmental Negotiating Body (INB) published a ‘zero-draft’ of the pandemic treaty on February 1
• It was established based on recognising the “catastrophic failure of the international community in showing solidarity and equity in response to the novel coronavirus disease (COVID-19) pandemic
• the draft noted “common but differentiated responsibilities and capabilities in pandemic prevention, preparedness, response and recovery of health systems” as one of its guiding principles
• As per this draft, if and when a pandemic occurs, parties must “take appropriate measures to support time-bound waivers of intellectual property rights that can accelerate or scale up manufacturing of pandemic-related products.”
• The draft strengthens this point by defining what a pandemic means and constituting a time-bound response.
• As per the draft, an outbreak is considered a pandemic when an infection spreads quickly globally — with high morbidity and mortality.
• Other factors are — infecting immunologically naive human populations, pushing health systems to their capacity and beyond, and triggering social and economic disruptions, where mitigation measures require coordinated efforts across the geographical spectrum.
• The constitution of a Pathogen Access and Benefit-Sharing system (PABS) under the WHO is another key element of the draft.
• To ensure fair and equitable benefit-sharing, the draft details 20 per cent access for the WHO to pandemic-related products, including diagnostics, vaccines and therapeutics. Here, 10 per cent each will be designated for donation and sale at affordable prices, respectively.
• The WHO Global Pandemic Supply Chain and Logistics Network, was also prosed under the draft.

Criticisms:

Inclusion of an independent monitoring mechanism to ensure countries comply with the treaty, continues to remain missing,

Background:

• The WHO already has binding rules known as the International Health Regulations, which in 2005 set out countries’ obligations where public health events have the potential to cross borders
• These include advising the WHO immediately of a health emergency and measures on trade and travel
• Adopted after the 2002-2003 SARS outbreak, these regulations are still considered appropriate for regional epidemics, such as Ebola but inadequate for a global pandemic
• It would be only the second such health accord after the 2003 Framework Convention on Tobacco Control, a treaty which aims to reduce smoking via taxation and rules on labelling and advertising.
• The new draft of the treaty not clear about the definition of the word “pandemic”.
• The new treaty should be complementary, so that existing rules apply to local outbreaks with the new rules kicking in if the WHO declares a pandemic
• The proposed treaty has come under fire because it could lead to countries ceding authority to the WHO.

Additional Info:

The International Health Regulations (2005) (IHR):

• It provide an overarching legal framework that defines countries’ rights and obligations in handling  public health events and emergencies that have the potential to cross borders.
• The IHR are an instrument of international law that is legally-binding on 196 countries, including the 194 WHO Member States. The IHR grew out of the response to  deadly epidemics that once overran Europe.
• They create rights and obligations for countries, including the requirement to report public health events.
• The Regulations also outline the criteria to determine whether or not a particular event constitutes a “public health emergency of international concern”.
• The IHR require countries to designate a National IHR Focal Point for communications with WHO, to establish and maintain core capacities for surveillance and response, including at designated points of entry.
• Additional provisions address the areas of  international travel and transport such as the health documents required for international traffic.
• The IHR introduce important safeguards to protect the rights of travellers and other persons in relation to the treatment of personal data, informed consent and non-discrimination in the application of health measures under the Regulations.

2. CJI Chandrachud condemns ‘forum shopping’: What is this practice?

Subject: Polity

Section: Judiciary

Context:

I will not permit forum shopping”, said Chief Justice of India (CJI) DY Chandrachud last week to a litigant appearing before him

What is practice of forum shopping?

• When litigants or lawyers attempt to deliberately move their case to a particular judge or Court where they think the judgment could be more favourable, they are said to be “forum shopping.”
• For example, one could directly approach the Supreme Court via a public interest litigation case instead of the concerned High Court because the issue could get more eyeballs.
• Similarly, “Bench hunting” refers to petitioners managing to get their cases heard by a particular judge or court to ensure a favourable order, the court added
• most common law countries use the “forum non-conveniens” principle to prevent forum shopping, which gives the court discretionary powers to refuse to exercise its jurisdiction over a matter where another court, or forum, may more conveniently hear a case.
• Using this power, the court can dismiss a case in the interests of justice and the parties while allocating it to the appropriate bench

What’s Supreme Court ruling regarding this?

• The Supreme Court in its 1988 ruling in ‘Chetak Construction Ltd. vs. Om Prakash’ said, “A litigant cannot be permitted choice of the forum,” and that every attempt at forum shopping “must be crushed with a heavy hand
• Last year, on March 22, an SC Bench of Justice S. Abdul Nazeer and Justice Krishna Murari in the case of ‘Vijay Kumar Ghai vs. State of W.B.’ termed forum shopping as a “disreputable practise by the courts” that “has no sanction and paramountcy in law”.
• In the 2022 ruling, the court reiterated that forum shopping has been condemned by courts while referring to its 2017 ruling in ‘Union of India & Ors. vs. Cipla Ltd.’, which laid down a “functional test” to be adopted for forum shopping.
• What has to be seen is whether there is any functional similarity in the proceedings between one court and another or whether there is some sort of subterfuge on the part of a litigant.
• It is this functional test that will determine whether a litigant is indulging in forum shopping or not

3. UPI: Factors for success, impact

Subject :Economy

Section: Monetary Policy

Unique characteristics of UPI:

1. Innovative: Immediate Payment Service (IMPS) forms the base of UPI, its innovative application is behind UPI’s success. Adopting a UPI ID rather than entering bank account numbers and IFSC codes has made transactions effortless.
2. Inclusive: UPI is not just limited to one App. Interoperability of the UPI allows one to send money or receive it from anyone on the UPI system irrespective of the poarticular application like GPay, Paytm etc.
3. Security: UPI provides reliable end-to-end security and data protection making it a secure platform. Use of a mobile number already registered with the bank ensures ease of compliance with RBI’s KYC requirements.
4. Ease of Use: No need to enter any details like account number or IFSC code, which makes adoption by masses more likely.
5. Contactless: After Covid-19 there is a greater preference of contactless payments, hence people prefer UPI over debit/credit card.

Other supporting factors (Macro factors):

1. Digital Connectivity: Rise of e-commerce along with widespread availability of high speed mobile internet after entry of companies like Jio in telecom space have helped UPI’s growth.
2. Hardware Cost: Rise in the use of smartphones linked to availability of feature packed affordable handsets has also been a contributing factor for UPI’s success. (especially true for Rural areas)
3. Government Policies: Policy of promoting an integrated digital payment ecosystem with  schemes like–Aadhaar Enabled Payment System, FASTag, Rupay, and IMPS have simplified payments, and projects like DIGIDHAN Mission through their promotion of digital transactions has also helped in UPI’s growth. The Jan Dhan accounts through financial inclusion have ensured that most households are linked to formal banking.
4. Merchant Discount Rate (MDR):  MDR is an amount/percentage paid to the payment gateway by the merchant; For cards the cost is around 1.8%. For UPI, the MDR is Zero. This helped in merchant’s preference for UPI over debit/credit cards.

Impact:

• UPI has resulted in significant savings on transaction costs. It is forecasted that by 2026, an additional $45.6 billion or 1.12% of India’s GDP, will be boosted by savings made possible by UPI payment.
• UPI monthly transactions value touched a high of 14 Lakh Crore in March 2023 with 865 crore transactions. For FY23 the total UPI transaction value is around Rs 139 Lakh Crore.
• Debit card use is seeing 20% fall YoY. ATM withdrawals have also reduced to half.

4. Payment Banks 2.0: Search for growth and new income stream

Subject :Economy

Section: Monetary Policy

Role and Contribution:

• Have helped in extending monetary facilities to the underserved

Challenges:

• Not all are able to make sustainable profits. (The 3 profitable ones are: Airtel Payments Bank, Fino Payments Bank and Paytm Payments Bank)
• Present business model is not scalable.
• Competition from new-age fintech companies
• Out of 11 payment bank licenses given in 2014, 5 withdrew even before the start of operations, owing to fear of competition from fintech players.

Demands of Payment Banks:

• To allow them to lend to retail borrowers upto Rs. 2 Lakh (around the same as their average deposit size)

Original intention of giving licenses in 2014:

To enable cash and deposit management of small customers.

Problem with allowing payment banks into lending space:

• Lending requires strict adherence to capital adequacy norms and risk mitigation, which Commercial banks and NBFCs have to follow.
• Many payment banks are owned by Corporate houses which increases risk in allowing entry into the lending segment. (see Box below)

Way ahead:

• Profitable operations by the three (see above) payment banks shows that profits are possible.
• Huge scope of growth in less-catered non-urban and rural areas. This answers the scalability argument.
• These can replace Bank correspondents with more reliable infrastructure and transparent service.
• Present business model shows that a steady flow of fees income is good enough for profitable operations.
• With RBI granting the payment aggregator and payment gateway licenses to Fintech companies. In view of this licensing guideline of payments bank need an overhaul (only partial modifications were made in 2021)
• Instead of entry into the lending space, payment banks could be allowed to operate the end-to-end payments domain (acquirer, gateway and processor all in one). This will make the business model more sustainable apart from serving customers more efficiently.

5. COVID-19 genomics body INSACOG has not put out weekly bulletin since March 27

Subject : Science and Technology

Section: Biotechnology

Why in news?

The India SARS-CoV-2 Genomics Consortium (INSACOG), a multi-laboratory, multi-agency, pan-India network tasked with sequencing, and keeping an eye out for new, threatening SARS-CoV-2 variants, has not published a single bulletin since March 27.

INSACOG COVID -19 Bulletins:

• Earlier, the agency would publish reports once a week. Bulletins provided information on the circulating variants of COVID-19, States that were seeing a surge in the contagious variants and information on whether SARS-CoV-2 variants linked to major outbreaks internationally had been found in India.
• December 2022 saw four bulletins on the 5th, 12th, 19th and 26th of the month, January 2023 saw bulletins on the 2nd and 9th, February saw no bulletins while March had bulletin releases on the 13th, 20th and the last on the 27th of the month. April and May (so far) had no bulletins for the public.

Why no Bulletin?

Genome sequencing had dipped because fewer samples were being made available to network-labs from hospitals and medical colleges for sequencing (as reported cases were declining).

Why it is important?

The World Health Organisation (WHO) has warned that countries should not look away from COVID-19 and on May 20, launched a global network to help protect people from infectious disease threats through the power of pathogen genomics.

The International Pathogen Surveillance Network (IPSN) will provide a platform to connect countries and regions, improving systems for collecting and analysing samples, using these data to drive public health decision-making, and sharing that information more broadly.

ISACOG:

• INSACOG is a joint programme initiated by the Union Health Ministry of Health and the Department of Biotechnology with the Council for Scientific and Industrial Research (CSIR) and the Indian Council of Medical Research (ICMR). It is a consortium of 54 laboratories to monitor the genomic variations in SARS-CoV-2.
• The central government set up a consortium of 10 national research institutions, which will collaborate for carrying out effective surveillance and monitoring of the genomic variations observed in the new SARS nCov-2 virus strain, recently identified from the United Kingdom.
• Indian SARS CoV2 Genome Sequencing Consortium (INSACOG), it will be a platform for scientists, virologists, experts studying diseases and government officials to interact and track the genomic variations of the novel coronavirus.
• INSACOG will have a high level Inter-Ministerial Steering Committee.
• It will have a Scientific Advisory Group for scientific and technical guidance.
• It will monitor the genomic variations in the SARS-CoV-2 on a regular basis through a multi-laboratory network.
• This vital research consortium will also assist in developing potential vaccines in the future.
• The consortium will also establish a sentinel surveillance for early detection of genomic variants with public health implication, and determine the genomic variants in the unusual events/trends (super-spreader events, high mortality/morbidity trend areas etc.).

6. Digital Census and Self-enumeration through NPR Update

Subject : Schemes

Concept :

• The article discusses implementation of a digital Census and the option for citizens to self-enumerate through updating their National Population Register (NPR) details online.
• Census 2021, the first digital Census, will allow citizens to “self-enumerate” when it is conducted.
• The government has not announced the date for the Census yet, and a notification from January 2, 2023, indicates that the exercise is postponed until at least September.

National Population Register (NPR)

• The NPR is a register that records the usual residents of the country.
• It is prepared at various levels, including local, sub-district, district, state, and national.
• The creation of the NPR is governed by the provisions of the Citizenship Act 1955 and the Citizenship (Registration of Citizens and issue of National Identity Cards) Rules, 2003.
• It is mandatory for every usual resident of India to register in the NPR.
• A usual resident is defined as a person who has resided in a local area for the past 6 months or more, or a person intending to reside for next 6 months or more.

Scope:

• The NPR exercise is conducted at the local, sub-district, district, state and national levels.
• The NPR will collect both demographic data and biometric data. Biometric data will be updated through Aadhar details.
• In the 2010 exercise, the RGI had collected only demographic details.
• In 2015, it updated the data further with the mobile, Aadhaar and ration card numbers of residents.
• For the 2020 exercise, it has dropped the ration card number but added other categories.

Differences between NPR and Census

• The census involves a detailed questionnaire, collecting information such as age, sex, marital status, occupation, religion, and more.
• The NPR collects basic demographic data and biometric particulars.
• The census is governed by the Census Act, 1948, while the NPR operates under a set of rules framed under the Citizenship Act, 1955.

7. Parliament buildings and Constitutional provisions

Subject : Polity

Section: Parliament

Concept :

• The BJP and the Congress have locked horns over the upcoming inauguration of the new Parliament building by Prime Minister Narendra Modi, with Union Minister Hardeep Singh Puri alleging that the Congress is “generously misquoting” from the Constitution and “lacks in any national spirit & sense of pride in India’s progress”.
• Tharoor agreed with Kharge and mentioned Articles 60 and Article 111 of the Constitution, which he said “make it clear that the President is the head of the parliament”.

Article 60 of Indian Constitution – Oath or affirmation

• Article 60 of the Indian Constitution prescribes the Oath or affirmation by the President.
• It states that the oath of office to the President is administered by the Chief Justice of India and, in his absence, the senior-most judge of the Supreme Court available.
• Any other person acting as President or discharging the functions of the President also undertakes the similar oath or affirmation.

Article 111 of Indian Constitution – Assent to Bills

• Article 111 of the Indian Constitution says that whenever a Bill is passed from both the Houses of Parliament, it shall then be presented to the President of India for final approval.
• Now, it is in the hands of the President if he assents to the Bill or holds it back for reconsideration. If he thinks that the Bill is not the Money Bill that he can immediately after receiving the Bill transmit it back to the Lok Sabha with a message as a request to reconsider the Bill.
• The President can also specify a particular provision he is not sure of as a recommendation in his message. After the Bill is returned back in Lok Sabha, then the House of People will reconsider the Bill accordingly.
• Now, it will depend on the House Of People to consider the amendments recommended by the President. If the House feels that the amendment is pivotal and necessary then it may or may not make those amendments.
• After the reconsideration when the Bill is again sent to the President for final assent, this time it has to be assented to by the President of India for further proceeding in Financial Matters.

8. CAG team works to increase synergy among ministries

Subject : Polity

Section: constitutional body

Concept :

• A team of CAG held a brainstorming session with senior officers of central ministries with a view to facilitating the identification of systemic issues and potential areas for improvement.
• The CAG team was headed by Deputy Comptroller and Auditor General (Report Central) Rakesh Mohan.

Comptroller and Auditor General of India (CAG)

• The Constitution of India provides for an independent office of the Comptroller and Auditor General of India (CAG).
• He is the head of the Indian Audit and Accounts Department and is one of the bulwarks of the democratic system of government in India
• He is the guardian of the public purse and controls the entire financial system of the country at both the levels–the Centre and the state.
• His duty is to uphold the Constitution of India and laws of Parliament in the field of financial administration.

Constitutional Provisions for Office of CAG

• Article 148 broadly deals with the CAG appointment, oath and conditions of service.
• Article 149 deals with Duties and Powers of the Comptroller and Auditor-General of India.
• Article 150 says that the accounts of the Union and of the States shall be kept in such form as the President may, on the advice of the CAG, prescribe.
• Article 151 says that the reports of the Comptroller and Auditor-General of India relating to the accounts of the Union shall be submitted to the president, who shall cause them to be laid before each House of Parliament.
• Article 279 Calculation of “net proceeds” is ascertained and certified by the Comptroller and Auditor-General of India, whose certificate is final

Appointment, Term & Removal

• The CAG is appointed by the President of India by a warrant under his hand and seal.
• The CAG holds office for a period of six years or up to the age of 65years, whichever is earlier.
• He can resign any time from his office by addressing the resignation letter to the president.
• He can also be removed by the president on same grounds and in the same manner as a judge of the Supreme Court. In other words, he can be removed by the president on the basis of a resolution passed to that effect by both the Houses of Parliament with special majority, either on the ground of proved misbehaviour or incapacity.

Independence

• The Constitution has made the following provisions to safeguard and ensure the independence of CAG:
• He is provided with the security of tenure and can be removed by the president only in accordance with the procedure mentioned in the Constitution. Thus, he does not
• hold his office till the pleasure of the president, though he is appointed by him.
• He is not eligible for further office, either under the Government of India or of any state, after he ceases to hold his office.
• His salary and other service conditions are determined by the Parliament. His salary is equal to that of a judge of the Supreme Court.
• Neither his salary nor his rights in respect of leave of absence, pension or age of retirement can be altered to his disadvantage after his appointment.
• The administrative expenses of the office of the CAG, including all salaries, allowances and pensions of persons serving in that office are charged upon the Consolidated Fund of India and are not subject to the vote of Parliament.
• No minister can represent the CAG in Parliament (both Houses) and no minister can be called upon to take any responsibility for any actions done by him.

Duties of CAG

• CAG audits the accounts related to all expenditure from the Consolidated Fund of India, Consolidated Fund of each state and UT having a legislative assembly.
• CAG audits all expenditure from the Contingency Fund of India and the Public Account of India as well as the Contingency Fund and Public Account of each state.
• CAG audits all trading, manufacturing, profit and loss accounts, balance sheets and other subsidiary accounts kept by any department of the Central Government and the state governments.
• CAG audits the receipts and expenditure of all bodies and authorities substantially financed from the Central or State revenues; government companies; other corporations and bodies, when so required by related laws.
• He ascertains and certifies the net proceeds of any tax or duty and his certificate is final on the matter.