GD – topics

Linking of Aadhaar: Is making Aaadhar mandatory a good idea?

BAD
 Many have filed law suits against the linking of aadhaar card.
 Potential threat to personal information as there are chances of systems being hacked.
 If the Biometrics system seems helpful for any database match, then there also chances of hackers to
reverse-engineer the finger prints. The same happened to the german chancellor angela merkel. Where her
fingerprints were faked using just her picture. IF such a case comes where you’d have to withdraw money
only through biometric system then aadhaar linking seems a risky option.
 Also linking aadhaar to bank does not make any account safer. Constant checking of account statements
and enquiring about it makes it safe.
 It is imp to note that issuance of aadhaar and regulations are also not monitored. The whole purpose of
monitoring becomes useless
 Airtel aadhar card scam – through ekyc they had requested the subscribers to link their aadhar card with
the sim which would then open an airtel bank account. Airtel for allegedly opening payment bank accounts
for its mobile subscribers without consent. They then routed the LPG subsidies of 31 lakh users to airtel
payment bank rather than their original bank account. Fine amt 2.5 crore.

Fugitive Economic Offenders Bill

 Bill gives the power to attach all the assets of the person who has been declared as a fugitive economic
offender.
 However, there are similar bills already in place like SARFAESI and still economic offenders are leaving the
country, running away with huge public money.
 In case of Nirav Modi, the amount that has been extracted through his properties/assets is 6393 crores but
the amount looted was double i.e. 11400 crores. Roughly 100% profit not a bad thing for nirav modi.
 The offenders do find a way to get away with any reasons like vijay mallaya had presented a reason stating
that the indian prisons are not well maintained and is over crowed.
 The bill is not capable of stopping such crimes, ones an offender has fled, there is no way that the offender
will present himself/herself.
 It should also be noted that in case of nirav modi, assets of the bank perpetrators should also be attached
because the fraud could not have happened without their help.

Bank Recapitalization: NPA reduction and not bank recapitalization can cure the health
of PSBs in India

 Huge topic – go through this website http://www.mbauniverse.com/group-discussion/topic/business-

economy/bank-recapitalization
 Remember – Recapitalization Tools worth Rs.2.11 Lakh crores

The Government has proposed the recapitalisation of banks worth 2.11 lakh crores which is to be done in
following manner

 Budgetary allocations: Rs. 18000 crore

 Issue of equity shares by banks in the market: Rs.58000 crore
 Issue of Recapitalisation bonds by the Government: 1.35 lakh crore
End of subsidy regime: Step needed to propel the wheel of growth

 The prime minister has promised that the subsidy money which you will be giving up will not go to the
government exchequer but will be utilised to provide clean and safe lpg fuel to people in rural areas where
people are still using unhealthy fuel like cowdung or wood to cook their daily meals as LPG is too expensive
for them.
 India is incurring a loss of around 140000 crore every year due to subsidies provided. Elimination can help
the poor by budgetary savings.
 This could lead to many social welfare schemes being developed for the general public.
 It shall put the economy on the fast track of growth. By reduction is various taxes and duties like excise,
sales, trade, once the subsidy is withdrawn. Also it could lead to price competition between companies like
reliance, essar , shell and future joiners.

Merger of Public Sector Banks

 Beneficial bcoz the cost of banking operations will reduce significantly.
 Financial inclusion and geographical reach can be better achieved with the
inclusion of regional banks who have greater expertise in that region.
 The regional banks will get more products and services to offer.
 The NPA and risk management will be better managed.
 More scope of improvement
 Will come under the top 50 with no more competition from previous regional
banks.