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Trouble is brewing in the financial sector in India

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rouble is brewing in the financial sector in India

Shimla- All is not well in the financial sector in India. For the past few years, the  financial sector in India has been in the news for all the wrong reasons; be it the loan given to the liquor baron Vijay Malaya; the revelation of  Nirav Modi saga; ever mounting NPA amount in the public sector banks; payment default by  Infrastructure Leasing & Financial Services  (IL&FS); for weeks the RBI and the Government were at  the loggerheads- that culminated with the infelicitous resign of the Governor prior to his completion of term; or be it woes the various private sectors banks like ICICI, Bandhan Bank, Kotak  Mahindra Bank or Yes bank are facing.

All these incidents are not only disconcerting but can have a preponderant impact on the financial markets. Off late, banks stocks have been on the downslide because of the uncertainty and pessimism caused in the market by the series of such unwanted events. There have been rumors of liquidity crunch in the market for some time now, the credit growth has been bleak, impacting the investment and hence job creation. 

After the series of payment default by the Infrastructure Leasing & Financial Services (IL&FS), the Modus Operandi of non-banking financial companies in India is under serious scrutiny. The systematic risk associated with shadow banking in India might require a major relook. 

RBI has put 11 Public Sector banks under Prompt Corrective Action framework, and the majority of them are running in losses hence requiring a massive capital infusion. The problem of NPA is far from over in Public Sector Banks. 

The trouble with the private sectors banks will capitulate the demand for privatization of Public Sector banks, as these incidents have proved ownership of banks is not the root cause of the problems of Public Sector banks; moreover, these incidents proved private sector banks are not immune to troubles and changing ownership will not help much, as far as the problems of Public Sector banks are concerned. 

All this will have a bearing on India’s worldwide credit rating too, adversely affecting the investment ecosystem required for strong and stable economic growth. 

All this does not augur well for India’s development. The financial sector plays a critical role in the development of any nation. To reap the benefit of the economic potential, a robust and healthy financial sector with strong fundamental is required, along with an independent and accountable Central banker coalesced with a fair financial market regulator. 

At the moment there is a lot to cogitate for us. Our image, worldwide, has taken a dent, it needs to be restored. We cannot persist with the beleaguered financial system for too long. The financial sector is full of various risks, the key, however, is to infer the rumblings early and prepare to minimize such risks. 

We have a serious problem in our hands and we must act fast. If we don’t act in time, the problem may exacerbate further. And our Lehman Brother moment may not be far if we don’t manage these conspicuous risks. For a stable and sustainable growth, we need to put an end to these troubles brewing in the financial sector. It’s high time.

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Covid-19 Needs a Regional Response, Say Physicians and Activists at SAPAN Meeting

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Poster

Peace activists under the SAPAN platform conducted an event on Sunday which included prominent physicians like Dr Zafrullah Chowdhury, Dr Anup Subedee, Dr Vandana Prasad, and Dr Hamid Jafari of Pakistan (led the team that eradicated polio in India). Speakers included Salima Hashmi, Khushi Kabir, Kanak Dixit, Lalita Ramdas, besides journalists Beena Sarwar, Mandira Nayar and others. Activist Priyanka Singh conducted the event.

South Asian countries cannot go it alone, that’s irrational,’’ said Dr. Zafrullah Chowdhury, renowned public health activist and Ramon Magsaysay awardee from Bangladesh.

The hard lockdown in his country will lead to furthering the inequalities in society, he warned, emphasizing that it is irresponsible to impose lockdowns without providing food. “Poverty has increased. There are 25 million more poor without food.”

Dr Chowdhury was among the physicians and health right activists across countries who came together on Sunday 27 June at a webinar organised by the South Asia Peace Action Network (SAPAN) to emphasize that the coronavirus pandemic must be fought collectively.

The third in the series of SAPAN’s monthly public webinars themed ‘Imagine: Neighbours in Peace’, the meeting focused on health as an entry point to talk about South Asian regionalism and Healthcare for all. Three main aspects deliberated included:

  How the pandemic is affecting rural areas of South Asian countries, hurdles in treatment, and access — or lack thereof — to vaccinations.

  How COVID-19 has affected mental health, women and particularly women in rural areas of all the countries of the region

  How the challenges are similar in all countries of the region and require similar solutions.

The meeting took place at a time when South Asia is reeling from the devastating second wave of Covid-19, especially in India. With Delta plus virus mutation now detected in parts of the region, the possibility of another wave looms large.

Journalist Mandira Nayar in Delhi moderated the physicians’ panel with Dr Zafrullah Chowdhury in Dhaka; infectious diseases specialist Dr Anup Subedee in Kathmandu and public health activist Dr Vandana Prasad also in Delhi. Dr Hamid Jafari of Pakistan, who led the WHO team that eradicated polio in India, joined from his current posting in Jordan. 

Dr Chowdhury advocated challenging vaccine-producing countries and pushing South Asian governments to invest more in public health.

Participants also noted that the pandemic has particularly hit women hard.

“Domestic violence has increased,” noted Dr Prasad. Women often lack control over finances, are primary caregivers and shoulder the responsibility of caring for the ill. The pandemic has pushed women further into the margins, she said, adding that there is also a “gender dimension to the access of vaccines”.

She urged doctors to enter the peace activism domain, because the poor all over are at the brink of disaster.

Dr Prasad drew attention to the gendered nature of pandemic and frontline workers, as well as Dalits, indigenous people, other minorities. “Telemedicine is important, but we must not lose focus on need for ground-based public health to begin with”.

Frontline workers in India, the accredited social health activist (ASHA) workers often lack training, safety equipment and often doesn’t get her wages for months.

While highlighting that a public health system is meant to be a great equaliser, Dr Anup Subedee noted how the pandemic exposed systematic failures in many aspects of life in Nepal, referring not only to the grievous impact on non-Covid healthcare – like child immunization and maternity care – but also the painful ordeals of healthcare community itself. 

He shared how the healthcare community in Nepal has been compelled to deal with threats of violence, lack of access to personal protection equipment, prospects of income loss without any social security system support, and an unaddressed mental health crisis among healthcare workers. 

Doctors at the meeting endorsed the need for greater cooperation and collaboration across borders. Participants called on the governments to allow free flow of critical equipment and medical personnel across borders. Prime Minister Narendra Modi had floated the idea of a SAARC medical visas for patients and for medical teams to assist during the pandemic – something that must be followed up.

The doctors also urged the international fraternity to push for a Trade-Related Aspects of Intellectual Property Rights, or TRIPS, waiver so that the Covid-19 vaccine production can be ramped up. “It is the way forward for vaccines for all,’’ asserted Dr Prasad.

Activist Khushi Kabir in Dhaka introduced the event. She talked about connections, sharing her memory of how Dr Haroon Ahmed, one of the event’s speakers, was her physician when she was a child and he was starting work at a government clinic in Karachi. Dr Haroon was unable to join at the last moment due to ill health. 

Wishing him a speedy recovery, Khushi commented, “Each time we meet, there are more losses people who have been part of our journey”. As at the previous SAPAN meeting there was a commemoration of mentors and leaders whose vision SAPAN is taking forward, like Asma Jahangir and Dr Mubashir Hasan, and Nirmala Despande and others. 

There was also a moment of silence to express condolences and share the grief of the families and friends of those lost to Covid and other causes over the past month. “Since we were unable to memorialise everyone, the presentation could only be symbolic,” noted Khushi Kabir.

The In Memoriam slideshow includes journalist Ghazi Salahuddin’s three siblings taken by Covid in as many weeks, including Dr Aquila Islam, Pakistan’s first woman nuclear physicist. It also included the legendary runner Milkha Singh and his wife, volleyball champ Nirmal Saini who died within days of each other, and radiologist Chinna Dua, 56, wife of journalist Vinod Dua. She had endeared herself to music and poetry lovers across the region when she joined Tina Sani some years back at the Faiz Festival in Karachi – on Facebook at this link.

Ghazi Salahuddin has written about his family tragedy in a brave and heartbreaking oped for The News, Partings without goodbyes (20 June 2021), noting: “my struggle to cope with this terrible bereavement was eased a bit when I reminded myself that this pandemic has devastated so many families across the world…”

Several well known activists and experts also joined from Pakistan, India, Bangladesh, Nepal and elsewhere, including Hina Jillani, Urvashi Butalia, Jean Dreze, Kavita Srivastava, Shireen Huq, Kanak Mani Dixit and others.

The South Asia Peace Action Network (SAPAN) is primarily a coalition of individuals and organisations aiming to take forward a peace agenda for the region, building on the work done by mentors and leaders over the last few decades. 

SAPAN founder and curator Beena Sarwar shared the story of this network and her vision for an inter-generational, multi-sectoral, inter- and intra-regional coalition of individuals and organisations coming together in broad consensus for a one-point agenda.

Facebook live recording is online at this link

Source: SAPAN,  Beena Sarwar, Kanak Mani Dixit, Mandira Nayar, Rida Anwaar, Rehmat Merchant, Priyanka Singh and some other peace activists present in the virtual session

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Editors Guild of India Condemns FIR Against Journalists, Calls it Destructive of Freedom of Speech

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Image Credit: The Cognate

Shimla-The Editors Guild of India on Thursday condemned the filing of First Information Reports (FIRs) by the Uttar Pradesh Police against The Wire and several other journalists for their tweets on an assault on an elderly Muslim man in Ghaziabad on June 5th.

“The Guild is deeply concerned by the UP Police’s track record of filing FIRs against journalists to deter them from reporting serious incidents without fear of reprisals”, it said.

It further added that it is the duty of the journalists to report on the basis of sources and in case facts become contested later on, to report the emerging versions and facets.

The guild called such actions by the police destructive of freedom of speech. It also claimed that the police has been discriminatory in targeting those media organizations and journalists when thousands had tweeted the video- that have been critical of the government and its policies.

“The Guild condemns this wanton misuse of laws to criminalize reporting and dissent to harass independent media and demands that the FIRs be withdrawn immediately,” it demanded.

Several media organizations and journalists had posted the video on their social media feeds. The UP police has filled FIR’s against The Wire, Twitter, journalist Mohammed Zubair, Rana Ayyub and Sana Naqvi and some Congress leaders under IPC Sections 153(provocation for rioting), 153A(promoting enmity between different groups), 295A(acts intended to outrage religious feelings), 505(mischief), 120B(criminal conspiracy) and 34(common intention) against them.

In the video that was posted by those charged, the man is seen alleging that he was beaten up by some people and was forced to chant ‘Jai Shree Ram’.

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India’s Revised Vaccination Policy and Supreme Court’s Role Behind This Change in Approach

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india's revised vaccination policy

Shimla-Free vaccine to all Indian citizens above 18 years of age would be available from 21st June onwards, the Government of India announced yesterday. The Centre has also announced that private hospitals would not be able to levy arbitrary charges for vaccination and the rate would be fixed. The government also rolled back its policy for procurement of vaccines, which was under heavy criticism not only from the opposition but also from the Supreme Court of India.

Though, the Centre claimed that the roll-back was a result of the demands raised by state governments, but some believe this decision came right after harsh judicial scrutiny of the government’s previous policy by the Supreme Court, whose initiation is being lauded by the citizens of India amid this pandemic.

“Many states came forward with a demand for reconsideration of the vaccination strategy and for bringing back the system that was there before 1st May,” the Centre said while defending the rollback.

Also, the Centre was even objecting to the court’s jurisdiction in matters related to policymaking and had termed it as an encroachment on the jurisdiction of the executive. However, very mindful of its jurisdiction, the court had mitigated this allegation of the Centre by explaining how policymaking is subject to judicial scrutiny. The court made the Centre aware of the ‘dialogic judicial review’, where the Court can question the executive and demand justifications from it over non-conformity of a policy to the constitutional rights.

Furthermore, the Supreme Court had grilled the Union government over its faulty and discriminatory policy as states were left on their own for the procurement of vaccines. In its orders passed on May 31, a bench comprising of Justice DY Chandrachud, L Nageswara Rao and S Ravindra Bhat came down heavily upon the central government. The bench had termed the policy approach as “arbitrary and irrational”  because it did not provide free vaccination for the 18-44 year age group.  The bench had sought clarification on policy and dual pricing in which states were being made to procure vaccines directly from the manufactures and were invariably paying more for vaccines while the Centre procured the same vaccines at lower rates.

“Due to the changing nature of the pandemic, we are now faced with a situation where the 18-44 age group also needs to be vaccinated, although priority may be retained between different age groups on a scientific basis. Hence, due to the importance of vaccinating individuals in the 18-44 age group, the policy of the Central Government for conducting free vaccination themselves for groups under the first 2 phases, and replacing it with paid vaccination by the State/UT Governments and private hospital for the persons between 18-44 years is prima facie arbitrary and irrational” a bench observed while passing an order on May 31, 2021 concerning a Suo moto case on “Re-Distribution of Essential Supplies and Services During Pandemic”.

Further, the court had also expressed concerns over the digital divide which would make accessing vaccine equally difficult for a large section through online registration.

Earlier, in its orders passed on April 30, the bend had observed that this policy approach would be “detrimental to the right to life and health”. The bench had also observed that this policy requires rethinking, as it needs to be formulated in conformity with the provisions of Articles 14 and 21 of the Indian Constitution.

The bench aggressively went on to order the government to share all details of the vaccine purchase and distribution, as well as provide information on how the budget allocated for the vaccination (₹35,000 Crores ) was used.

Provisions of the New Vaccination Policy

  • Procurement of 25 per cent vaccinations which was earlier with states will now be undertaken by the Government of India.
  • The government of India will buy 75 per cent of the total vaccines produced and will provide it to the states free of cost. No state government would be spending anything on vaccines.
  • The system of 25 per cent vaccines being procured directly by the private hospitals will continue. Private hospitals can’t charge more than 150 rupees service charge over the decided price of the vaccines.

The Centre said that this policy would be rolled out in two weeks.

“In two weeks, the Centre and states will make necessary preparations as per new guidelines,” the Centre announced yesterday.

Till today, more than 23 Crore vaccine doses have been administered in the country.

To ward off the embarrassment caused by such a contentious policy which was not conforming with the constitutional rights of the citizens, Prime Minister Narendra Modi, without referring to the judicial review, blamed it on the state governments.

“As the corona cases started declining, questions arose about the lack of choice for states and some people questioned why the Central government is deciding everything,” he said.

“India’s vaccination program was run mostly under the Central government. Free vaccination for all was moving forward and people were showing discipline in getting vaccinated when their turn came, amid all these demands for decentralization of vaccination were raised, the decision about priority to certain age groups was raised. Many types pressures were exerted and certain sections of media took it as a campaign,” the PM said.

But with that being said the role of the judiciary in making the government roll back its policy in the interest of the people is being lauded as the victory of judicial review. Also, it has attracted positive response for the apex court which was being alleged of evading several matters related to the public interest under the pressure from the current political regime.

Pradhan Mantri Garib Kalyan Anna Yojana Extended  Till Deepawali.

In another major announcement, the Central government announced the extension of the Pradhan Mantri Garib Kalyan Anna Yojana till Deepawali.

As per the announcement, till November, 80 crore people will continue to get a decided amount of free food grain every month.

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