09 Jan 2021: UPSC Exam Comprehensive News Analysis

9 Jan 2021 CNA:- Download PDF Here

TABLE OF CONTENTS

A. GS 1 Related
B. GS 2 Related
INTERNATIONAL RELATIONS
1. China holds third edition of South Asia multilateral meet
C. GS 3 Related
ECONOMY
1. Centre turns to SC as talks with farmers fail to break deadlock
2. Another youth ends life over loan app harassment
D. GS 4 Related
E. Editorials
POLITY AND GOVERNANCE
1. Beyond the Central Vista verdict, key questions
F. Prelims Facts
G. Tidbits
1. SEBI eases norms for follow-on public offers
H. UPSC Prelims Practice Questions
I. UPSC Mains Practice Questions

2. Another youth ends life over loan app harassment

Context

  • Another case of suicide due to harassment by unauthorised digital lending mobile apps was reported in Telangana.

Background

  • The Reserve Bank of India (RBI) had cautioned consumers against falling prey to unauthorised digital lending platforms and mobile apps that are designed to cause financial frauds.

Details

  • Digital apps make intensive use of popular social media platforms like Facebook, Instagram and (now banned) TikTok to aggressively advertise their services, while also engaging in wide-scale email and SMS marketing campaigns.
  • These platforms charge excessive rates of interest and additional hidden charges, adopt unacceptable and high-handed recovery methods and misuse agreements to access data on mobile phones of borrowers.
    • They offer small loans between Rs 10,000 and Rs 60,000 at exorbitant rates of interests between 60 and 100 per cent.
  • What is particularly attractive to borrowers about these apps is that they do not require much documentation before sanctioning a loan.

Which are the apps? Who is operating them?

  • The police in Telangana and Andhra Pradesh have identified the following mobile apps which are offering instant loans. Cash Mama, Loan Zone, Dhana Dhan Loan, Cash Up, Cash bus, Mera Loan, Hey Fish, Monkey Cash, Cash Elephant, Water Elephant, QuickCash, Kissht, LoanCloud, InstaRupee Loan, Flash Rupee-Cash Loan, Mastermelon Cashtrain, GetRupee, ePay Loan, Panda iCredit, EasyLoan, RupeeClick, OCash, Cashmap, Snapit, RapidRupee, ReadyCash, Loan Bazaar, Loanbro, Cash Post, Rupeego, Cash Port, RsRush, Pro Fortune Bag, Rupee Loan, Robocash, CashTM, Udhaar Loan, Credit Free.

How were the victims affected?

  • Apart from levying hefty penalties for failure or delay in repayment of loans, the agents use a combination of coercion, blackmail, and threats.
    • After issuing loans to customers from their app for seven days, they divide all the customers into different categories of buckets.
    • On a due date, it is called as D-0 bucket; after the due date from day 1 to day 3, it is S1 bucket; from day 4 to 10, it is S2 bucket; and from day 11 to 30, it is S3 bucket.
  • The treatment of a customer depends on which bucket the customer is in. Immediately after the due date, a customer will be harassed with dozens of calls.
  • During S2 bucket, abusive calls will be made to family members. Later, threats and blackmail start. Finally, they access the contacts of relatives and friends of the customers and send them WhatsApp messages defaming the defaulter. Unable to bear the humiliation, while two persons have died by suicide, several people lodged police complaints after which Cyberabad Police busted the racket.

RBI Advice

  • Moreover, consumers should never share copies of KYC documents with unidentified persons, unverified/unauthorised apps and should report such incidents to concerned law enforcement agencies.
  • It has cautioned individuals and small businesses against falling prey to the growing number of unauthorised digital lending platforms and mobile applications on promises of getting loans in a quick and hassle-free manner.

F. Prelims Facts

Nothing here for today!!!

G. Tidbits

1. SEBI eases norms for follow-on public offers

  • SEBI, which is the capital markets watchdog, has chosen to relax the framework for follow-on public offers (FPOs).
  • This move is anticipated to help the promoters of companies to raise funds more conveniently through this route.
  • The SEBI notification has also done away with the applicability of minimum promoters’ contribution norm and the subsequent lock-in requirements for the issuers making the FPO.
  • Previously the promoters were mandated to contribute 20% towards an FPO.
  • Besides, in case of any issue of capital to the public, the minimum promoters’ contribution was mandated to be locked-in for a period of three years.
  • The relaxation would be available for those companies which are frequently traded on a stock exchange for at least three years. Also, such firms should have redressed 95% of investor complaints.

H. UPSC Prelims Practice Questions

Q1. With reference to the Gangetic River Dolphin, which of the following statement/s 
is/are correct?
  1. It is recognized as the National Aquatic Animal.
  2. Its IUCN status is critically endangered.

Options:

  1. 1 only
  2. 2 only
  3. Both
  4. None
CHECK ANSWERS:-

Answer: a

Explanation:

Please refer to the page on the national aquatic animal of India.

Q2. Which of the following are the functions of Directorate General of Civil Aviation (DGCA)?
  1. Keeping a check on aircraft noise and engine emissions
  2. Promoting indigenous design and manufacture of aircraft
  3. Checks on the proficiency of flight crew
  4. Construction, Modification and Management of passenger terminals

Options:

  1. 1, 2 and 3 only
  2. 2, 3 and 4 only
  3. 1, 3 and 4 only
  4. 1, 2, 3 and 4
CHECK ANSWERS:-

Answer: a

Explanation:

  • The DGCA is the regulatory body for civil aviation under the Ministry of Civil Aviation.
  • The DGCA is responsible for implementing, controlling, and supervising airworthiness standards, safety operations, crew training in India.
  • This directorate investigates aviation accidents and incidents.
  • Construction, Modification and Management of passenger terminals is the function of the Airports Authority of India (AAI).
Q3. Muga silk protected with the geographical indication (GI) tag is from the state of
  1. Tamil Nadu
  2. Karnataka
  3. Gujarat
  4. Assam
CHECK ANSWERS:-

Answer: d

Explanation:

  • It is a variety of wild silk geographically tagged to the state of Assam.
  • The silk is known for its extreme durability and has a natural yellowish-golden tint with a shimmering, glossy texture.
Q4. Which of the following are the tiger landscapes in India?
  1. Shivalik Hills and Gangetic Plains
  2. Central Indian Landscape and Eastern Ghats
  3. Western Ghats
  4. North-East Hills and Brahmaputra Plains
  5. The Sundarbans

Options:

  1. 2, 3 and 4 only
  2. 1, 3 and 5 only
  3. 1, 2, 3, 4 and 5
  4. 3, 4 and 5 only
CHECK ANSWERS:-

Answer: c

Explanation:

  • India’s tiger habitat is classified into five landscapes – Shivalik hills and Gangetic plains, Central and Eastern ghats, Western Ghats, North East hills and the Brahmaputra, and the Sundarbans.

I. UPSC Mains Practice Questions

  1. Unauthorized digital lending platforms and mobile apps have caused financial frauds and blackmail. What are the measures taken by the RBI and the State Governments to curb such services?
  2. Do you think the Government could have gone for renovation rather than reconstruction in reference to the Central Vista project? Justify.

Read the previous CNA here.

9 Jan 2021 CNA:- Download PDF Here

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