Trending topics : 1

1
 Index
1) How RBI facilitates the Payments and Settlement System in India

2) The day after surgical

3) Climate Change

4) Administration of Union Territories in India

5) Features of Payments Banks

6) Significant Achievements of NITI Aayog over the last three years.

2
How RBI facilitates the Payments and Settlement System in
India

RBI and Payment and Settlement System in India:

An efficient payment and settlement system that transfers and settles

payments is necessary to promote economic activities. Such a payment system
comprises of networking between banks, money transfer facilities, clearing
houses and other institutions, instruments for payments and rules and
regulations for administering the entire payment activities. When we use the
NEFT, RTGS, pre-paid instruments, cheques, Core Banking System and any of
the National Payment Corporation of India mechanism (IMPS, AEPS etc), we
are using the RBI managed payment and settlement system.

RBI as a central bank, creates, regulate and manages the national payments
system of India. It has taken several initiatives for Safe, Secure, Sound,
Efficient, Accessible and Authorised payment systems in the country.

What is Payment and Settlement System?

According to the European Central Bank, Payment system from the

central banking terminology refers to the set of instruments, banking
procedures and interbank funds transfer systems which facilitate the
circulation of money in a country or currency area. Central banks are
the managers of payment and settlement system in any country.

The legal system that frames the national payment system

A legal system comprised of regulation for payment system is necessary

for cementing a well-functioning payment system. In the context of rising
electronic payment practices and emergence of Prepaid Payments
Instruments, (PPIs), the government has enacted Payment and
Settlement Systems Act, 2007 (PSS Act) to regulate activities related to
payments. The PSS Act that became effective from 2008 says that no
person other than the RBI can commence or operate a payment system
in India unless authorized by RBI.

Paper based payments to digital payments

3
 In the past, the RBIs national payment system was dominated by paper
based payment devices like Cheques. But now situation has changed,
electronic payment methods have emerged as leader in terms of value of
transactions (only 11% payments are paper based according to the RBI
statistics). At the same time, RBI is inventing several electronic payment
platforms to promote the movement of money electronically. It has
created the National Payments Corporation of India (NPCI) in 2008 to
promote digital payment technologies.
The speed of digital payment culture and infrastructure is amazing over
the last few years; driven by technology. For example, as per the RBI
data, the RTGS (Real Time Gross Settlement) has transferred nearly 82%
of the total digitally paid money during the month of March 2017. But in
terms of number of transactions its share is 21%. The PoS (Point of Sale),
NEFT and NACH (National Automatic Clearing House), Mobile banking
were also used significantly.

Formation of CCIL

For settling financial asset payments, the RBI created Clearing

Corporation of India (CCIL) in April 2001 for clearing and settlement of
trades in money market, government securities and foreign exchange
markets.
Creation of RTGS, NEFT, Prepaid Payments Instruments (PPIs), Mobile
Banking, PoS and NPCI
Besides the RTGS and NEFT, several digital payment devices designed
by the NPCI including IMPS, AEPS etc., are changing the digital
payments space especially small payments. After the enactment of the
PSS Act in 2007, RBI issued guidelines for PPI players. Similarly, a
variety of instruments like UPI, BHIM App etc were also launched to
revolutionize the payments system. With the rapid change in technology,
the PSS Act 2007 is expected to be amended soon to bring more progress
in digital payments.

4
 The day after surgical

What happened?

A surgical strike is a precision military attack carried out by going into another
country with the intention to damage a specific target. Surgical strikes are
meant to avoid collateral damage to surrounding civilisations or the general
public.

India has carried out surgical strikes targeting launch pads for terrorists
across the Line of Control (LoC), the Army said on Thursday. The strike was
carried out on Wednesday night.

Based on very specific and credible information that some terrorist teams had
positioned themselves along the line of control, the Army carried out surgical
strikes at these launch pads.

The operations were focused to ensure that these terrorists do not succeed in
endangering lives of citizens in our country. During the counter-terrorist
operations, significant casualties have been caused to the terrorists and those
who were trying to support them. The operations have since ceased, Director
General of Military Operations (DGMO) Lt. Gen Ranbir Singh said.

The strikes are being seen as the first major military action taken by India after
terrorists from Pakistan crossed into an army camp in Uri in Kashmir earlier
this month. 18 soldiers were killed in that attack, one which Prime Minister
Narendra Modi had said would "not go unpunished."

Union Minister Rajavardhan Rathore said the operation was "counter-terror

and not military action" against Pakistan, but stressed that India has signalled
that while it "will strive for peace, it will not bow down to terror."

Indian Army stood by its word and gave Pakistan a reply at the place and
time of our choice.

Why was the strike made public? There have been reports of Indian strikes
across the LoC in the past but this is the first time such an operation has been

5
made public at the official level.This indicates that there was certainly a
political pressure of responding to Uri attacks. An operation without public
announcement might have boosted the morale of the army but would have
neither satisfied public sentiment nor would have redeemed the strongman
image of the Prime Minister Narendra Modi. Admittance of Indian strikes will
increase the pressure on Pakistan army for a proportionate, if not more,
military response. The denial means either Pakistan will not respond or it will
respond through deniable operations involving regular forces or terrorists.

The Pakistan army says two of its soldiers were killed in LoC firings. The
Indian DGMO statement mentions significant casualties to terrorists and those
trying to support them.Are the two Pakistani soldiers among those supporting
the terrorists?

The nature of Pakistans response will have implications on nuclear deterrence

equations between the two countries. If Pakistan does not escalate the crisis
even after Indian army publicising its surgical strike, it will mean there is space
for India to undertake military response to terror attacks.

However there is need for caution: There were reports of John Kerry, the
US secretary of state, speaking to Sushma Swaraj, the Indian minister of
external affairs, advising her not to escalate the crisis with Pakistan. Now the
phones from Washington will be ringing in Islamabad and Rawalpindi.

A war like atmosphere is likely to hurt both nations. Whether this strike is a
calculated risk or a colossal misjudgement of strategy will depend on Pakistans
response. But for now it is fair to say that India for the first time in recent past
as embarked on a new aggressive policy towards its neighbour.

Only military experts and intelligence agencies can say how many surgical
strikes India has carried out in the past considering that the nature of such
operations are supposed to be covert and so not for public consumption.

Having upped the bar by launching strikes and publicising them, the public
clamour for even more decisive army action is bound to follow the next
incident, no matter how small it may be in comparison to Pathankot or Uri.
But the harder India hits Pakistan, the greater are the chances of Pakistani
retaliation and escalation. This is where the United States and other world
6
powers come in. Having seen that India means business, Washington has its
work cut out for it.

When did Pakistan reject the claims of a surgical strike: Inter Services Public
Relations, the media arm of the Pakistan military, acknowledged the exchange
of gunfire but denied the idea of precision strikes. In a statement, it said:There
has been no surgical strike by India, instead there had been cross border fire
initiated and conducted by India which is existential phenomenon. As per rules
of engagement same was strongly and befittingly responded by Pakistani
troops. The notion of surgical strike linked to alleged terrorists bases is an
illusion being deliberately generated by Indian to create false effects. This quest
by Indian establishment to create media hype by rebranding cross border fire as
surgical strike is fabrication of truth.

The statement also said two Pakistani soldiers died in the firing. According to a
report that cited the countrys defence minister, nine army personnel were
injured during the incident.

The military dismissed the surgical strikes as an illusion, while defence

minister Khawaja Asif referred to them as a lie. Officials said Pakistani
troops had responded to small weapons fire in five sectors along the LoC that
killed two soldiers and injured nine others.

Pakistan Prime Minister Nawaz Sharif reportedly said: Our intent for a
peaceful neighbourhood should not be mistaken as our weakness.

There is no consolation in the possibility that both could conduct retaliatory

surgical strikes without recourse to nuclear weapons, however unlikely both
possibilities are. Once a precedent has been sent, there is no way of knowing
which surgical strike sends the other over the edge.

The Pakistani response claiming no surgical strikes took place may,

paradoxically, allows Islamabad to keep the political and military temperature
down, which would also suit India. The more specifics the Indian side gets into
in public, the harder it might be for Pakistan to be dismissive.

7
Pakistans refusal to acknowledge it has been hit also makes it easier for
countries around the world to remain noncommittal about the consequences of
the Indian action.

Where is the trend of such strikes seen?

USA

In May 2011, the US special forces attacked an ISI safe house in Abbottabad,
Pakistan, where al-Qaida chief Osama bin Laden was hiding, taking him out in
a contained attack. In the CIA-led operation, code-named as Operation
Neptune Spear (also Operation Geronimo), was carried out by the US Navy
SEALs.

In 1989, the US initiated a mission to capture Panamanian dictator Manuel

Noriega which culminated in a filmy ending. The US Navy SEALs cornered
Noriega at a Roman Catholic facility in Panama City, but after heavy crossfire
and being attacked with loud music by Guns N' Roses and The Clash, Noriega
surrendered.

In March 2003, the CIA led a surgical strike in Pakistan to capture three terror
suspects, including Khalid Sheikh Mohammed, who was believed to be one of
the key planners of the 9/11. The strike took place in Rawalpindi and Khalid
Sheikh Mohammed was taken to the Guantanamo Bay detention facility for
"enhanced interrogation techniques".

In June 2006, the US Air Force sent warplanes to carry out a surgical strike on
the safehouse of Abu Musab al-Zarqawi, the leader of al-Qaida in Iraq. After
surviving the attack of 500-pound bombs; al-Zarqawi met his end at the hands
of the US soldiers.

India

In June 2015, a team of some 70 Indian Army commandos carried out surgical
strike inside the jungles of Myanmar. The 40-minute operation took out 38
dreaded Naga militants and left seven injured. The strike was planned hours
after the Naga militants killed 18 soldiers in an ambush in Chandel area of
Manipur on June 4, 2015.

8
Who has mastered the art of surgical strikes? As a term, surgical strike
became popular after Israel started launching swift military strikes against
specific targets successfully like the commando operation at Entebbe in Uganda
to free Israelis from a hijacked plane. Another successful Israeli surgical strike
was at Osirak nuclear installation of Iraq that ended the latters nuclear
weapons ambitions.

The Israel Defense Forces (IDF)' famous hostage-rescue mission in Uganda's

Entebbe airport is remembered as one of the most clinical surgical strikes in
history. In June 1976, members of the Popular Front for the Liberation of
Palestine hijacked an Air France plane and forced it to land at Uganda's
Entebbe International Airport. After the then Ugandan dictator, Idi Amin,
made no attempts to rescue the hostages, the IDF stepped in. The strike was
carried out by 100 Israeli commandos, and ended with all the militants being
killed.

The IDF are, in fact and in legend, one of the most adept militaries in modern
history. For decades, Israels supporters have burnished the image of a
supremely competent IDF, and that image, more recently, has tended to focus
on the precision with which Israel can make war. There was, for instance, the
publicly released military footage of the assassination of Ahmed Jabari, the
military head of Hamas, who was killed by a pinpoint strike that took out his
moving car. In another publicized incident, the Israeli navy destroyed a single
floor of a building in Gaza, while leaving the rest of the building intact. Even in
this conflict, the IDF has continued topromote itself as a surgical operator

But that does not mean that Israel is always successful. In 2007, Israeli
commandos sneaked into Lebanon to destroy Hazbollah but failed miserably
and retreated disgracefully.

How careful should India be? For starters, it is not a war or a call for it.
Surgical strikes are military operations undertaken by forces across the world to
move on the offensive, hit enemy targets and installations, and return to
primary positions - all with lightening speed and with the added precaution of
suffering limited casualty. However, the risk of escalation does exist.

9
The more than 700,000 Indian troops stationed in the disputed Kashmir Valley
are grappling with a separatist movement in the Muslim-majority area. They
are staring down almost 200,000 Pakistani troops on the other side of the
border.

If India and Pakistan fought a war detonating 100 nuclear warheads (around
half of their combined arsenal), each equivalent to a 15-kiloton Hiroshima
bomb, more than 21 million people will be directly killed, about half the worlds
protective ozone layer would be destroyed, and a nuclear winter would
cripple the monsoons and agriculture worldwide.

The U.S. is allied with both India and Pakistan but there have been signs it
might be putting its support behind India when it comes to the issue of
militants in Pakistan. While Pakistan rejected India's account of the latest
cross-border activity, officials hinted they might retaliate.

Adding a dangerous element to the mix is Pakistan's consistent assertion that it

reserves the right to use nuclear weapons pre-emptively.India has a no-strike-
first policy. Pakistan's defence minister repeated that claim last week after the
attack on Indian soldiers in Uri.

Pakistani options to retaliate consist of intensified shelling across the Line of

Control and international border, encouraging another Uri-type attack on
Indian forces in Jammu and Kashmir, instigating terrorist strikes in Indian
cities, or on Indian targets in a third country, especially Afghanistan. Of these,
the first and the last retaliatory options would probably be the easiest for
Rawalpindi to execute

10
 Climate Change
It is the long term change in the statistical distribution of weather
patterns over periods of time
Though it has been happening naturally for millions of years, in recent
years it has accelerated due to anthropogenic causes and has been causing
global warming.
UNFCCC defines climate change as a change of climate which is
attributed directly or indirectly to human activity that alters the
composition of the global atmosphere and which is in addition to natural
climate variability observed over comparable time periods

Global Warming
An increase in the average temperature of Earths near surface air and
oceans since the mid-20th century
4th assessment report of IPCC: global temperature increased 0.74+0.18
degree C during the 20th century.
Caused by greenhouse gases
Water vapour, Co2, Methane, Nitrous Oxide, Ozone, CFCs (in order of
abundance)
Since the industrial revolution, the burning of fossil fuels has increased
the levels of Co2 in the atmosphere from 280 ppm to 390 ppm.

Climate Change Mitigation

Alternative Energy sources
Renewable energy
Nuclear Power
Reduce the carbon intensity of fossil fuels
Energy efficiency and conservation
Transport and urban planning
Building design
Reforestation and avoid deforestation
Eliminating waste methane
Geo-engineering

11
 Greenhouse gas remediation
Biomass
Carbon air capture
Carbon capture and storage
Societal control
o Population
o Sustainable life-style

Inter-governmental action
IPCC
UN Conference on Environment and Development (Earth Summit), 1992
Agenda 21
o An action plan of UN relating to sustainable development adopted
at the Earth Summit, 1992
UNFCCC
Kyoto Protocol

IPCC
1988 by World Meteorological Organisation and UNEP
tasked with reviewing and assessing the most recent scientific, technical
and socio-economic information produced worldwide relevant to the
understanding of climate change
Nobel Prize in 2007
The IPCC does not carry out its own original research, nor does it do the
work of monitoring climate or related phenomena itself.
A main activity of the IPCC is publishing special reports on topics
relevant to the implementation of the (UNFCCC)
Till now, it has released four assessment reports (1990, 1995, 2001, 2007)
Fifth assessment report is due in 2014

UNFCCC: 1992 at the Rio Summit.

194 members. Secretariat at Bonn.

Parties to UNFCCC are classified as:

Annex I countries industrialized countries and economies in transition

12
 Annex II countries developed countries which pay for costs of
developing countries
Developing countries.

Conference Place Outcome

1995 COP1 Berlin The Berlin Mandate
1996 COP2 Geneva
1997 COP3 Kyoto Kyoto Protocol
1998 COP4 Buenos Aires
1999 COP5 Bonn
2000 COP6 /2001 COP6 The Hague/Bonn CDM and Joint
Implementation
adopted at Bonn
2001 COP7 Marrakesh
2002 COP8 New Delhi Delhi Declaration: Calls
for efforts by developed
countries to transfer
technology and
minimize the impact of
climate change on
developing countries
2003 COP9 Milan
2004 COP10 Buenos Aires
2005 COP11/MOP1 Montreal
2006 COP12/MOP2 Nairobi
2007 COP13/MOP3 Bali Bali Action Plan
2008 COP14/MOP4 Poznan, Poland
2009 COP15/MOP5 Copenhagen
2010 COP16/MOP6 Cancun
2011 COP17/MOP7 Durban, South Africa

Kyoto Protocol

The Kyoto Protocol has put in place three flexibility mechanisms to reduce
emission of Green House Gases. Although the Protocol places maximum
responsibility of reducing emissions on the developed countries by committing
them to specific emission targets, the three mechanisms are based on the
premise that reduction of emissions in any part of the globe will have the same
desired effect on the atmosphere, and also that some developed countries might

13
find it easier and more cost effective to support emissions reductions in other
developed or developing countries rather than at home. These mechanisms thus
provide flexibility to the Annexure I countries, helping them to meet their
emission reduction obligations. Let us take a look at what these mechanisms
are.

What are the three flexibility mechanisms put in place of the Kyoto
Protocol for reducing GHG emission?

The three mechanisms are joint implementation. Emissions Trading and

Clean Development

What is Joint Implementation?

Through the Joint Implementation, any Annex I country can invest in

emission reduction projects (referred to as joint Implementation Project)
in any other Annex I country as an alternative to reducing emissions
domestically.
Two early examples are change from a wet to a dry process at a Ukraine
cement works, reducing energy consumption by 53 percent by 2008-2012;
and rehabilitation of a Bulgarian hydropower project, with a 267,000 ton
reduction of C02 equivalent during 2008-2012.

What is Clean Development Mechanism?

The Clean Development Mechanism (CDM) allows-'l developed country

with an emission reduction or emission-limitation commitment under the
Kyoto Protocol to implement an emission reduction project in developing
countries as an alternative to more expensive emission reductions in their
own countries. In exchange for the amount of reduction In emission thus
achieved, the investing gets carbon credits which it can offset against its
Kyoto targets. The developing country gains a Step towards sustainable
development.
To get a CDM project registered and implemented, the investing country'
has to first take approval from the designated national authority in the
host country, establish "Additionally", define baselines and get the project
validated by a third party agency, called a Designated Operational Entity
(DOE). The Executive Body of CDM registers the project and issues
credits, called Certified Emission Reductions (CERs), or carbon credits,
where each unit is equivalent to the reduction of one metric tonne of. C02

14
 or its equivalent. There are more than 4200 CDM projects in the pipeline
as on 14.3.2010. The expected CERs till the end of2012 is 2,900,000,000

What is "Additionality" in a CDM project ?

The feature of "additionality" is a crucial element of a CDM project it

means that the industrialized country that is seeking to establish the
CDM project in the developing country and earns carbon credits from it
has to establish that the planned carbon reductions would not have
occurred on its own, in the absence of the CDM project. They have to
establish a baseline of the project. Which is the emission level that would
have been there in the absence of the project. The difference between this
baseline level and the (lower) emission level achieved as a result of the
project is the carbon credit due to the investing country

What are some of the concerns regarding CDM?

The risk of false Credits" is a cause for concern with regard to CDM
projects. If a project does not actually offer an additionally and the
reduction in emission would have happened anyway Even without the
project.

CoP15 (Copenhagen Summit)

Main aim was to establish a global climate agreement for the period from
2012 when the first commitment period under the Kyoto Protocol expires
The conference did not achieve any binding agreement for long term
action
A political accord was negotiated by approximately 25 parties
o Collective commitment by developed countries for new and
additional resources , including forestry and investments through
international institutions to a tune of $30 bn for the period 2010-12.
Copenhagen Accord
Not legally binding and does not commit countries to agree to a
binding successor to the Kyoto Protocol
Annex 1 parties would commit to economy-wide emissions targets
for 2020 to be submitted by 31 Jan 2010. Delivery of reductions
and finance by developed countries will be measured , reported and
verified (MRV) in accordance with COP guidelines

15
 Non-annex 1 countries would implement Nationally Appropriate
Mitigation Actions to slow their carbon emissions
Commits $30 bn for 2010-12
Copenhagen Green Climate Fund
The accord shall be assessed in 2015

Tarawa Climate Change Conference

In the lead up to COP16, the leaders of the worlds most climate-change
vulnerable countries met in Kiribati in November 2010
Ambo Declaration was adopted
o It calls for more and immediate action to be undertaken to address
the causes and adverse impacts of climate change.

CoP-16/CMP-6, Cancun
COP-16 President: Patricia Espinosa, Mexicos foreign secretary

COP-17 will be held in Durban

Issues
Forestry issues and reducing emissions from deforestation and forest
degradation (REDD) plus
The developed countries are pushing for transparency from countries
where they will fund climate change mitigation.
o The assessment of carbon emission mitigation for developing
countries is right now through domestic communication but is
subject to international consultation and analysis. This push for
transparency is a major contentious issue.
Fast-track finance: $ 30 bn had been committed at CoP-15. A large part
of this funding is yet to come through.

Goals

Agreements Reached
The outcome of the summit was an agreement, not a binding treaty,
which calls on rich countries to reduce their greenhouse gas emissions as
pledged in the Copenhagen Accord, and for developing countries to plan

16
 to reduce their emissions, to limit global warming to less than 2 degrees
celsius above pre-industrial levels.
There should be no gap between the first commitment period of the
Kyoto Protocol, which expires in December 2012, and the second phase.
The agreement calls on the developed countries to raise the level of
ambition of the emission reductions to be achieved by them individually
or jointly, with a view to reducing their aggregate level of emission of
green house gases
Allows flexibility in choosing the base year for setting emission reduction
targets
Emissions trading and the project based mechanism under the KP shall
continue to be available to Annex 1 parties as a means to meet their
quantified emission limitation and reduction objectives.
The agreements recognize that in all climate change related action,
human rights must be respected. They also recognise the need to engage
with a broad range of stakeholders, including youth and persons with
disability, and call for gender equality and effective participation of
women and indigenous people in effective action on all aspects of climate
change.
The BASIC group softened the three demands it had before the talks
began
o Necessity of a second commitment period to the Kyoto Protocol
o Need to accelerate disbursement under the fast start finance in the
form of new and additional resources through a multilaterally
supervised mechanism
o Continued dialogue on IPRs as part of the technology development
and transfer issues.
REDD is a part of the package and proposed mitigation actions include
conservation and enhancement of forest carbon stocks and sustainable
management of forests.
o REDD is a set of steps designed to use market/financial incentives
in order to reduce the emissions of greenhouse gases from
deforestation and forest degradation. Its original objective is to

17
 reduce GHGs but it can deliver co-benefits such as biodiversity
conservation and poverty alleviation
o REDD+ calls for activities with serious implication directed
towards the local communities, indigenous people and forests which
relate to reducing emission from deforestation and forest
degradation. It goes beyond deforestation and forest degradation
and includes the role of conservation, sustainable management of
forests and enhancement of forest carbon stocks
A Cancun Adaptation Framework has been proposed to strengthen and
address implementation of action, and various kinds of assessments, apart
from R&D and host of other issues.
Green Climate Fund established. The fund will be designed by a
transitional committee, with 15 members from the developed countries
and 25 from the developing nations.
Pledge by the developed countries to provide $100 bn annually till 2020.

Conclusion
UNFCCC secretary-general Christian Figueres emphasised that the main
achievement of the Cancun meet has been to restore some degree of faith
in the multilateral process.
The agreements dont mention any reduction targets.
Though the agreements recognize the need to reduce the GHG emissions
and curb the increase in global average temperatures below 2 degrees
Celsius above pre-industrial levels, in the absence of any firm target, this
could be an inadequate and vague provision
Bolivia has rejected the agreement, saying that it wont support
agreement without binding emission cuts.
In a sense, the summit was both a major step forward as well as a failure
It was a step forward because in recent years climate change negotiations
had stumbled and this meeting helped overcome that
It was a failure because it failed to reach an agreement for binding
restrictions that are required to avert global warming.
There was no agreement on how to extend the Kyoto Protocol, or how
the $100 billion a year for the Green Climate Fund will be raised or
whether developing countries should have binding emissions reductions.
18
Under the Cancun Agreements, the targets set by industrialised countries for
reduction of greenhouse gas emissions are recognised as part of the multilateral
process. They must now draw up low-carbon development plans and strategies
and also report their inventories annually. In the case of developing countries,
actions for emissions reduction will be recognised officially; a registry will
record and match their mitigation actions to finance and technology support
from rich countries; and they will report their progress every two years. These
form a good preamble for target-setting for all member-countries under an
agreed framework at Durban next year.

Trivia
A large amount of energy used during the conference came from
renewable sources
Around 10000 trees and bushes will be planted in Cancun

Role of India and its relevance

India can act as a mediator between the developing and developed
countries
Indias approach to climate change negotiations has been governed by
three factors how to protect the countrys economic interest and
environment agenda, to use climate change as a tool of global diplomacy
and consolidate its position on world forums.
At Cancun, India was responsible for having made five insertions into
the Agreement
o In the section on shared vision, the figure of 50 pc has been
dropped from identifying a global goal for substantially reducing
emissions by 2050
o The phrase access to sustainable development has been introduced
in the context of working towards identifying a time-frame for
global peaking of greenhouse gas emissions based on the best
available scientific knowledge
o International Consultation and Analysis (ICA) finds mention the
agreements. It proposes to enhance the reporting for the non-
Annex 1 parties or developing countries on mitigation action and
its effects and support received

19
 At Cancun, India also proposed legally binding emission cuts.

Climate Change related facts

From 2001 to 2010, global temperatures have averaged 0.46 degrees
Celsius above the 1961-1990 average and the highest value ever recorded
for a 10-year period.

What is REDD
Reducing Emissions from Deforestation and Forest Degradation (REDD) is a set
of steps designed to use market/financial incentives in order to reduce the
emissions of greenhouse gases from deforestation and forest degradation. Its
original objective is to reduce green house gases but it can deliver "co-benefits"
such as biodiversity conservation and poverty alleviation.

REDD+ is being criticised by indigenous people and activists because it is

designed to give more control over indigenous peoples forests to state forest
departments, miners, companies etc resulting in violation of rights, loss of
livelihoods etc.

REDD is presented as an "offset" scheme of the carbon markets and thus, will
produce carbon credits. Forest degradation accounts for 15% of greenhouse gas
emissions, about the same as transportation sector. Mitigation cannot be
achieved without the inclusion of forests in an international regime. Hence, it is
expected to play a crucial role in a future successor agreement to Kyoto
Protocol.

Cancun climate agreement at a glance

Cutting carbon emissions: Scores of rich countries made pledges over the last
year to cut their greenhouse gas emissions by 2020 under the Copenhagen
accord but they were not incorporated in the official UN process. Cancun now
formally puts those pledges into UN documentation, although they may
increase or decrease in future.

For the first time, developing countries also agreed to look at how they can cut
emissions in the future but did not make specific pledges.

Crucially however, none of the cuts are legally binding.

20
Climate aid: A new climate green fund was agreed at Cancun to transfer money
from the developed to developing world to tackle the impacts of climate change.
Poorer countries saw this as a success because they will outnumber rich
countries on a supervisory panel for the fund, which is due to be set up in 2011.
But no figure was put on how much money will go into it.

Separately, ministers repeated their political promise made last year at

Copenhagen to raise $100bn in climate aid by 2020, starting with $30bn by 2012
for fast track financing.

Forests : Formal backing was given for the UN's deforestation scheme, Redd
(reducing emissions from deforestation and degradation), under which rich
countries pay poorer nations not to chop down forests and so lock away carbon
emissions. But details on when and exactly what form the scheme will take
particularly whether developed countries will be able to use it to offset their
emissions rather than make cuts at home are still vague.

Kyoto protocol: Decisions on the future of the Kyoto protocol, the current
international treaty binding rich countries to cut emissions, were effectively
deferred until South Africa next year. Whether countries will sign up for a
second commitment period to cuts beyond 2012 remains to be seen. Decisions
on the role that the protocol will play in an ultimate future legal document that
binds the world's countries to emissions cuts the holy grail of the UN
negotiations were delayed.

Technology transfer :The idea of transferring knowledge of clean technology

between countries was backed at Cancun. A technology executive committee
and a climate technology centre and network are to be set up, but there are no
details on the money, where they will be based, when or by whom.

Countries agreed to the principle of having their emissions cuts inspected. Such
monitoring, reporting and verification will depend on the size of the country's
economy, though who will carry out the inspections was not specified.

COP 17, Durban

An agreement among by more than 190 nations to work towards a future
treaty that would require all countries to reduce emissions that
contribute to global warming.
o To be decided by 2015 and to come into force by 2020
21
 o The process for doing so, called the Durban Platform for Enhanced
Action, would develop a new protocol, another legal instrument or
agreed outcome with legal force that will be applicable to all
Parties to the UN Climate Convention
Agreed to launch a work plan to identify options for closing the ambition
gap between countries current emissions reduction pledges for 2020 and
the goal of keeping global warming below 2 degree C
New arrangements for making more transparent the actions taken by
both developed and developing countries to address their emissions
Also agreed to on the creation of a fund to help poor countries adapt to
climate change, and to measures involving the preservation of tropical
forests and the development of clean energy technology
The deal looks to renew the Kyoto Protocol for several more years. This
will be decided
o The second commitment period will run from 2013 to end of 2017
Next summit in Qatar

Important Organisations relating to environment/climate change

Name HQ etc General info
Centre for International Bogor, Indonesia Had received the
Forestry Research Queens Award for
(CIFOR) Forestry

View of different parties on climate change mitigation

Developed countries
Developing countries
Most vulnerable countries/ AOSIS countries
Activists/Environmental Groups

Activists
Activists have offered a serious criticism of market based measures like
CDM, emissions trading and REDD as they will affect the developing
countries and indigenous people adversely.

22
 Administration of Union Territories in India

In the last couple of months, the escalating conflict between the Chief Minister
of Delhi and the Lieutenant Governor of Delhi has led to several questions
regarding the powers of the Government of the National Capital Territory
(NCT) of Delhi and the Union Government to administer the NCT of Delhi.

The current dispute really is about who, between the Chief Minister and the Lt.
Governor, has been empowered by the Constitution to carry out posting of Civil
Servants in the NCT of Delhi. This recent public battle has also led to the in-
principle question of whether Delhi should be made a State.

The territories of the Union of India have states, union territories and the
territories which might be acquired by India at any time. While states are
members in the federal system with a share in distribution of power with centre,
Union territories are under the direct control and administration of Union and
are thus prominently display the unitary features. Currently, India has seven
Union Territories viz. Andaman and Nicobar Islands; Chandigarh; Dadra &
Nagar Haveli, Daman & Diu, Lakshadweep, NCT of Delhi and Puducherry.

Administration of the Union Territories (Article 239)

The Union Territories is administered by the President through an

administrator, who is appointed by him with a suitable designation. This
designation is called either Lieutenant Governor or Chief Commissioner or
Administrator. In Andaman & Nicobar Islands, Puducherry and Delhi,
administrator is called Lt. Governor, while in Chandigarh, Dadra & Nagar
Haveli, Daman & Diu and Lakshadweep he/ she is known as Administrator.
The President may appoint a Governor of an adjoining state as administrator of
a Union territory.

In such case the Governor works independently with regard to the

administration of the Union Territory. Power of Parliament to create local
legislatures (Article 239A) Power to decide the structure of administration in
the UT is vested in Parliament. Parliament was empowered to create a
legislature or council of ministers or both for a Union Territory via Constitution
(Fourteenth Amendment) Act, 1962 by inserting Article 239A.

23
Using this article legislature of Puducherry was established. Special Provisions
with respect to Delhi (Article 239AA) Article 239AA was inserted by 69th
amendment act, 1991. This article provides special provisions for the Union
Territory of Delhi. After the 69th Amendment Act 1991, w.e.f from February 1,
1992, the UT of Delhi is called National Capital Territory of Delhi. The
administrator of the NCT as appointed by the President as Lieutenant
Governor. Via Article 239AA, a legislative assembly for NCT of Delhi was
provided. The power to decide the number of the seats and reservation of the
seats was vested in the parliament. With this, Delhi became a state and the
Constitutional provisions with regard to Elections (Article 324-327 and 329)
became applicable in NCT. Since then, Delhi has been struggling for a status of
full-fledged state of India.

On which subjects the Delhi State legislature make laws?

As per the provisions of the Article 239AA, the State Government of Delhi can
make laws for whole or part of the NCT on all subjects in the State List or
Concurrent List except the following subjects of the State List:

Entry 1: Public Order

Entry 2: Police
Entry 18: Land
Entry 64: Offences against the laws Jurisdiction power of all courts

This means that Delhi has been endowed with a legislative Assembly with a
chief minister and a council of ministers with limited powers, distinct from the
powers available for them in other states.

The Article 239 AA has kept the Matters covered by Entries 1, 2 and 18 of the
state list of Seventh Schedule i.e. Public order, police and land outside their
purview.

What is implication of this provision?

As per article 239AA, Delhi Police, Municipal Corporation of Delhi etc. comes
under Union Government. While the Union home ministry deals with law and
order, the Delhi Development Authority (DDA) which owns a major chunk
of land in Delhi is part of the Union Urban Development Ministry. The

24
lieutenant governor, considered the Centres representative in Delhi, is
chairman of DDA.

The police commissioner of Delhi too reports to the lieutenant governor.

Presidents Rule on Delhi Article 239AB deals with Presidents rule in NCT of
Delhi. Article 239AB provides that if the Lieutenant Governor of Delhi gives a
report to the President that a situation has arisen in National Capital Territory
of Delhi in which the administration cannot be carried out in accordance with
the provisions of the article 239AA, then President can suspend any provisions
of Article 239AA.

Ordinance making Power of Administrator (Article 239) Article 239B gives the
administrator of the Union Territory of Puducherry the power of ordinance
making. The administrator of Puducherry can promulgate an ordinance when
the legislative assembly of Puducherry is NOT in session and the ordinance can
be promulgated with the prior permission of President only. Rest of the features
of the ordinance is same as Governor of a state.

Power of President to regulate peace, progress and good government

(Article 240)

President may make regulations for the peace, progress and good government of
the Union Territories of the Andaman & Nicobar Islands, Lakshadweep, Dadra
& Nagar Haveli, Daman & Diu and Puducherry. However as far as Puducherry
is concerned, President does not make any law on regulation for the peace,
progress and good government after the Legislature of the Puducherry was
created and had its first meeting. But during the dissolution or suspension of
the Puducherry Legislative assembly, the president can regulate the peace,
progress and good government.

25
 Features of Payments Banks

Payments banks are a type of differentiated bank introduced by the RBI for
promoting financial inclusion and facilitating payments and remittance flows.
They are different types of banks compared to the conventional universal banks
as the Payments banks can concentrate in only two types of activities
accepting demand deposits and facilitating payments. RBI also allowed Small
Finance Banks for supporting financial inclusion. They have slightly different
business activities and regulations.

The RBI has made extensive guidelines for the licensing, regulation and
product delivery of Payments Banks though its circular in July 2014. In August
2015, RBI has published the list of 11 payments bank candidates.

Following are the main business and regulatory features of Payments Banks.

Features Payments banks (PBs

Objectives To enhance financial inclusion by
providing

(i) small savings accounts and

(ii) payments/remittance services to:

migrant labour workforce, low income
households, small businesses, other
unorganized sector entities and other
users.

Eligible promoters (1) Existing non-bank Prepaid

Payments Instrument (PPI) issuers

(2) NBFCs Corporate Business

Correspondents,

(3) Mobile phone Companies, super

market chains, public sector entities
etc. Prompter can set a joint venture
with a commercial bank to start a
payments bank.

26
 (1) Acceptance of demand deposits,
with a maximum balance of Rs 100000
Activities per individual.

(2) Issuance of ATM/Debit cards; but

cant issue credit cards

(3) Payments and remittances through

various channels

(4) Can act as BC of another bank

(5) Can distribute non -risk sharing

simple financial products like mutual
funds and insurance products.

(1) No lending
Fund deployment
(2) CRR applicable

(3) SLR of 75% -comprising of upto

one year maturity GSecs/T-bills and
the remaining (25%) in deposits with
other Scheduled Commercial Banks.

Capital/Net Owned Fund Rs 100 crores

Registration and regulation of business

The payments bank will be registered as a public limited company under the
Companies Act, 2013, and licensed under the Banking Regulation Act, 1949. In
contrast to normal banks, specific licensing conditions will be applicable to
Payments banks. This is to restrict their activities mainly to acceptance of
demand deposits and provision of payments and remittance services. Payments
and Settlement Systems Act, 2007 will be a binding legislation for Payments
Banks.

27
 Significant Achievements of NITI Aayog over the last three
years.

Vision Document, Strategy & Action Agenda beyond 12th Five Year Plan:
Replacing the Five Year Plans beyond 31st March, 2017, NITI Aayog is in the
process of preparing the 15-year vision document keeping in view the social
goals set and/ or proposed for a period of 15 years; A 7-year strategy document
spanning 2017-18 to 2023-24 to convert the longer-term vision into
implementable policy and action as a part of a National Development
Agenda is also being worked upon. The 3-year Action Agenda for 2017-18 to
2019-20, aligned to the predictability of financial resources during the 14th
Finance Commission Award period, has been completed and will be submitted
before the Prime Minister on April 23rd at the 3rd Governing Council Meeting

II. Reforms in Agriculture:

a. Model Land Leasing Law

Taking note of increasing incidents of leasing in and out of land and

suboptimal use of land with lesser number of cultivators, NITI Aayog has
formulated a Model Agricultural Land Leasing Act, 2016 to both
recognize the rights of the tenant and safeguard interest of landowners. A
dedicated cell for land reforms was also set up in NITI. Based on the
model act, Madhya Pradesh has enacted separate land leasing law and
Uttar Pradesh and Uttarakhand have modified their land leasing laws.
Some States, including Odisha, Andhra Pradesh and Telangana, are
already at an advance stage of formulating legislations to enact their land
leasing laws for agriculture.

b. Reforms of the Agricultural Produce Marketing Committee Act

NITI Aayog consulted with the States on 21 October 2016 on three critical
reforms

Agricultural marketing reforms

Felling and transit laws for tree produce grown at private land
Agricultural land leasing

28
Subsequently, Model APMC Act version 2 prepared. States are being consulted
to adopt APMC Act version 2.

c. Agricultural Marketing and Farmer Friendly Reforms Index

NITI Aayog has developed the first ever Agriculture Marketing and
Farmer Friendly Reforms Index to sensitise states about the need to
undertake reforms in the three key areas of Agriculture Market Reforms,
Land Lease Reforms and Forestry on Private Land (Felling and Transit
of Trees). The index carries a score with a minimum value 0 implying
no reforms and maximum value 100 implying complete reforms in the
selected areas.
As per NITI Aayogs index, Maharashtra ranks highest in
implementation of various agricultural reforms. The State has
implemented most of the marketing reforms and offers the best
environment for undertaking agri-business among all the States and UTs.
Gujarat ranks second with a score of 71.50 out of 100, closely followed by
Rajasthan and Madhya Pradesh. Almost two third States have not been
able to reach even the halfway mark of reforms score, in the year 2016-17.
The index aims to induce a healthy competition between States and
percolate best practices in implementing farmer-friendly reforms.

III. Reforming Medical Education

A committee chaired by Vice Chairman, NITI Aayog recommended scrapping

of the Medical Council of Indi and suggested a new body for regulating medical
education. The draft legislation for the proposed National Medical Commission
has been submitted to the Government for further necessary action.

IV. Digital Payments Movement:

a. An action plan on advocacy, awareness and co-ordination of handholding

efforts among general public, micro enterprises and other stakeholders was
prepared. Appropriate literature in print and multimedia was prepared on the
subject for widespread dissemination. Presentations/ interactions were
organized by NITI Aayog for training and capacity building of various
Ministries/Departments of Government of India, representatives of State/UTs,
Trade and Industry Bodies as well as all other stakeholders.

29
b. NITI Aayog also constituted a Committee of Chief Ministers on Digital
Payments on 30th November 2016 with the Chief Minister of Andhra Pradesh,
Chandrababu Naidu, as the Convener to promote transparency, financial
inclusion and a healthy financial ecosystem nationwide. The Committee
submitted its interim report to Honble Prime Minister in January 2017.

c. To incentivize the States/UTs for promotion of digital transactions,

Central assistance of Rs. 50 crore would be provided to the districts for
undertaking Information, Education and Communication activities to bring 5
crore Jan Dhan accounts to digital platform.

d. Cashback and referral bonus schemes were launched by the Prime

Minister on 14.4.2017 to promote the use of digital payments through the
BHIM App.

e. Niti Aayog also launched two incentive schemes to to promote digital

payments across all sections of society - the Lucky Grahak Yojana and the Digi
Dhan Vyapar Yojana Over 16 lakh consumers and merchants have won Rs.
256 crore under these two schemes .

f. Digi Dhan Melas were also held for 100 days in 100 cities, from December
25th to April 14th.

V.Atal Innovation Mission: The Government has set up Atal Innovation

Mission (AIM) in NITI Aayog with a view to strengthen the countrys
innovation and entrepreneurship ecosystem by creating institutions and
programs that spur innovation in schools, colleges, and entrepreneurs in
general. In 2016-17, the following major schemes were rolled out:

a. Atal Tinkering Labs (ATLs): To foster creativity and scientific temper in

students, AIM is helping to establish 500 ATLs in schools across India, where
students can design and make small prototypes to solve challenges they see
around them, using rapid prototyping technologies that have emerged in recent
years.

b. Atal Incubation Centres (AICs): AIM will provide financial support of

Rs.10 crore and capacity buidling for setting AICs across India, which will help
startups expand quicker and enable innovation-entrepreneurship, in core

30
sectors such as manufacturing, transport, energy, education, agriculture, water
and sanitation, etc.

VI.Indices Measuring States Performance in Health, Education and

Water Management: As part of the Prime Ministers Focus on outcomes,
NITI has come out with indices to measure incremental annual outcomes in
critical social sectors like health, education and water with a view to nudge the
states into competing with each other for better outcomes, while at the same
time sharing best practices & innovations to help each other - an example of
competitive and cooperative federalism..

VII. Sub-Group of Chief Ministers on Rationalization of Centrally

Sponsored Schemes: Based on the recommendations of this Sub-Group, a
Cabinet note was prepared by NITI Aayog which was approved by the Cabinet
on 3rd August, 2016. Among several key decision, the sub-group led to the
rationalization of the existing CSSs into 28 umbrella schemes.

VIII. Sub-Group of Chief Ministers on Swachh Bharat

Abhiyan:Constituted by NITI Aayog on 9th March, 2015, the Sub-Group has
submitted its report to the Honble Prime Minister in October, 2015 and most
of its recommendations have been accepted.

IX. Sub-Group of Chief Ministers on Skill Development: Constituted on

9th March, 2015, the report of the Sub-Group of Chief Ministers on Skill
Development was presented before the Honble Prime Minister on 31/12/2015.
The recommendation and actionable points emerging from the Report were
approved by the Honble Prime Minister and are in implementation by the
Ministry of Skill Development

X. Task Force on Elimination of Poverty in India: Constituted on 16th

March, 2015 under the Chairmanship of Dr. Arvind Panagariya, Vice
Chairman, NITI Aayog, the report of the Task Force was finalized and
submitted to the Prime Minister on 11th July, 2016.The report of the Task
Force primarily focusses on issues of measurement of poverty and strategies to
combat poverty. Regarding estimation of poverty, the report of the Task Force
states that a consensus in favour of either the Tendulkar or a higher poverty
line did not emerge. Therefore, the Task Force has concluded that the matter be

31
considered in greater depth by the countrys top experts on poverty before a
final decision is made. Accordingly, it is recommended that an expert
committee be set up to arrive at an informed decision on the level at which the
poverty line should be set. With respect to strategies to combat poverty, the
Task Force has made recommendations on faster poverty reduction through
employment intensive sustained rapid growth and effective implementation of
anti-poverty programs.

XI. Task Force on Agriculture Development: The Task Force on

Agricultural development was constituted on 16th March, 2015 under the
Chairmanship of Dr. Arvind Panagariya, Vice Chairman, NITI Aayog. The
Task Force based on its works prepared an occasional paper entitled Raising
Agricultural Productivity and Making Farming Remunerative for Farmers
focusing on 5 critical areas of Indian Agriculture. These are (i) Raising
Productivity, (ii) Remunerative Prices to Farmers, (iii) Land Leasing, Land
Records & Land Titles; (iv) Second Green Revolution-Focus on Eastern States;
and (v) Responding to Farmers Distress. After taking inputs of all the States
on occasional paper and through their reports, the Task Force submitted the
final report to Prime Minister on 31st May, 2016. It has suggested important
policy measures to bring in reforms in agriculture for the welfare of the farmers
as well as enhancing their income.

XII. Transforming India Lecture Series: As the governments premier

think-tank, NITI Aayog views knowledge building & transfer as the enabler of
real transformation in States. To build knowledge systems for States and the
Centre, NITI Aayog launched the NITI Lectures: Transforming India series,
with full support of the Prime Minister on 26th August 2016. The lecture series
is aimed at addressing the top policy making team of the Government of India,
including members of the cabinet and several top layers of the bureaucracy. It
aims is to bring cutting edge ideas in development policy to Indian policy
makers and public, so as to promote the cause of transformation of India into a
prosperous modern economy. The Deputy Prime Minister of Singapore, Shri
Tharman Shanmugaratnam, delivered the first lecture on the topic: India and
the Global Economy. On November 16th, 2016, Bill Gates, Co-Founder, Bill

32
and Melinda Gates Foundation, delivered the second lecture in the series under
the theme: 'Technology and Transformation'.

33