19 November 2015

Moving back to a regressive tax system

The Swachh Bharat cess imposed by the Narendra Modi government is part of a continuum of moves that is making the Indian tax system even more regressive.
Let us rewind to 1991. Socialist India had one of the most regressive tax regimes in the world. Four out of every five rupees collected as tax by the government came from indirect taxes, which are considered regressive because their burden is shared by citizens irrespective of income. This was one of the less noticed hypocrisies of successive socialist governments that taxed the poor even while pretending to serve them. One of the key goals of the subsequent tax reforms was to make the tax system more progressive by increasing the importance of direct taxes.
The tax reforms of the early 1990s were an eventual success on this front. More moderate tax rates, a cleaner tax system with fewer exemptions and better tax administration helped. The share of direct taxes in the total kitty steadily went up over the years. Corporate taxes led the increase. An important inflection point was reached in fiscal year 2009, when the share of corporate taxes became higher than the share of indirect taxes, for perhaps the first time in our fiscal history. The Indian tax system finally became more progressive.
There are now disturbing signs that the process is reversing. A story by the Mint data journalism team in May showed that the share of indirect taxes have gone up by six percentage points since fiscal 2010 while the share of direct taxes began to come down by the same proportion. Direct taxes still dominate—by eight percentage points—but it may be a matter of time before the clock is turned back.
Part of this problem is undoubtedly because of the sluggish growth in corporate taxes as a result of the pressure on profits in recent years. There was a splendid surge in corporate tax collections during the four years of unprecedented economic expansion after 2004. Then the financial crisis stopped Indian companies in their tracks. So it is fair to assume that there will be a recovery in corporate tax collections once the economic recovery gathers steam. Meanwhile, the drop in input and financing costs could support corporate profits in the coming quarters. The business cycle may thus explain some of the reversal seen in recent years, but the recent tax decisions by the government are a much deeper cause for worry.
The finance ministry has clearly depended on indirect tax hikes to support its revenues, which is one of the main reasons why the latest budget numbers for this year show a robust growth in indirect taxes compared to sluggishness in direct tax collections. Some of these tax hikes, especially on energy, are justified because they reverse some of the tax cuts by the previous government when global oil prices were shooting up, and because more expensive energy can help India meet some of its climate change commitments.
Yet, the bottom line is that indirect taxes grew by 36.9% in the first seven months of the current fiscal year, partly because of the pick-up in economic activity but largely due to higher tax rates (which is one reason why gross domestic product at market prices came down in the first quarter even as gross value added accelerated).
There have been several criticisms of the Swachh Bharat cess—from its impact on fiscal federalism to the distortions it will introduce at a time when India wants to move to a single goods and services tax (GST). These are valid criticisms. An equally important worry is that the cess is the latest in a series of tax moves that will make the tax system less progressive. It is a worry that goes beyond the usual budget calculus or even the denial of revenue to states.
Is Swachh Bharat cess a good idea for the Indian tax system?

India climbs six places on WEF’s gender index

India climbs six places on WEF’s gender index

India has jumped to 108th spot, courtesy political representation, but remains laggard on economic, health fronts
At 108 out of 145 countries, India’s ranking in the global gender index, compiled every year by the World Economic Forum (WEF), has climbed six places, primarily on account of political representation, but continues to be abysmal on the economic and health fronts.
India’s improved overall ranking (up from 114 of the 142 countries examined last year) reflects the fact that there are more women in positions of political leadership, particularly ministers and members of Parliament. With the number of women ministers jumping from 9% to 22% of the cabinet, India ranks among the most improved countries in the region in terms of political representation.
Prime Minister Narendra Modi’s cabinet has six women ministers, including in the key portfolio of external affairs. The 16th Lok Sabha also saw a rise in the number of women parliamentarians from 11.4% to 12.15%.
That’s the good news.
Equally, there are many causes for concern.
India fell five places in terms of women in the workforce to hit nearly the bottom of the rankings at 139 of 145 countries, its worst rank in this category since 2006.
Indian women have also regressed in terms of health and survival, placed at a lowly 143 out of 145. India is one of the three countries that have declined the furthest on the health and survival sub-index, the other two being China and Albania.
The WEF’s assessment of India’s ranking in terms of sex ratio at birth (143), a sub-indicator in the health and survival category, is unchanged from last year and is ahead only of China and Armenia.
On educational attainment—a fourth parameter in the overall gender index after political representation, economy and health—India has improved marginally, going up one place from 126 in 2014 to 125 this year.
The report said the female to male ratio in India’s labour force participation is 0.35 now against 0.36 last year. Income disparity is also high, with women earning an estimated average of $2,257 per year, compared with $9,175 for men. While South Africa has narrowed its labour force participation gap by 18% and Japan by 11%, in India, the gap has widened by 7%.
Overall, India’s fall in rank is not only relative to other countries, it also marks a decline in absolute terms—the gap is wider today than 10 years ago.
Ironically, even as India’s gender ranking in education reflects an improvement—119 in primary education enrolment, 118 for secondary and 104 for tertiary education—women continue to be missing from the workforce.
At 53 percentage points, India has one of the worst gender gaps in the world when it comes to labour force participation, 2015 World Bank data shows. Not only other countries in the BRICS (Brazil, Russia, China and South Africa) grouping, but other emerging economies in Asia such as Indonesia fare much better than India when it comes to employing women, according to the World Bank data.
India’s female labour force participation rate fell nearly seven percentage points to 22.5% between 2004-05 and 2011-12, according to India’s NSSO data(http://bit.ly/1jenLeB), Mint reported in November 2013.
In a paper titled Labour Force Participation of Women in India: Some Facts, Some Queries, published by the London School of Economics’ Asia Research Centre, Surjit Bhalla and Ravinder Kaur point out that discrimination against women, starting from practices such as sex-selective abortion, is a possible reason for poor participation of women in the workforce.
In addition, the lack of safety and supporting infrastructure plays a role in deterring many educated, urban women from pursuing careers.
“India is a very peculiar case where despite increases in incomes and the economy, female labour-force participation has declined. Barring a few metros and some companies, workspaces are not women-friendly. Lack of safety and infrastructural issues have been reasons why women are staying away,” said Shamika Ravi, a fellow at Brookings India, a think tank.
Some have questioned the WEF’s methodology, which they say is anomalous because it looks at political empowerment through representation even though Parliament itself has failed for 20 years to pass a bill seeking to reserve 33% parliamentary seats for women.
“I am not sure how much weightage can be given to having a female prime minister or president as there is no direct link with women in power and feminist notions of empowerment,” said Mary E. John, senior fellow and associate professor, Centre for Women’s Development Studies at Delhi University.
Globally, the gender gap has closed by 4% in the 10 years since WEF began measuring the global gender gap in 2006.
The economic gap has closed only by 3% with wage equality and labour force parity stalling from 2009-10.
The WEF estimates that at this rate, the economic gender gap worldwide will not be bridged until 2033.
As with India, globally, too, the area where the most progress has been made over the past decade is political representation.
For 2015, the top 10 ranked countries in terms of gender include the Scandinavian trio of Iceland, Finland and Norway.
One African country, Rwanda, comes in at No 7 and an Asian country, the Philippines ranks 9.
The Asia-Pacific top 10 include two South Asian countries—Bangladesh at 64 and Sri Lanka at 84.

18 November 2015

वन क्षेत्राधिकारी परीक्षा-2015 हेतु आॅन लाईन आवेदन पत्र

वन क्षेत्राधिकारी परीक्षा-2015 हेतु आॅन लाईन आवेदन पत्र
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last date: 5th dec

Uttarakhand PCS Mains initiative

Uttarakhand PCS Mains initiative

This is a Free initiative where your participation and answer writing practice(a way of contribution) will be help full to all UK PCS mains candidate.we will review the answers written by candidates and will give feedback and one best answer out of all will be posted.

It has been long journey from advertisement of ukpcs exam  to  pre result and then  waiting for mains exam.mains exam was supposed to be happen in may , 2015, but due to a case in high court wrt  rajya andolankari ,it could not happen till date.Now Uttarakhand government has passed bill regarding reservation .So chances of conduction of exam by ukpsc seems reality (we have to wait for time table) .
when we interacted with  numbers of candidates,we heard their problems regarding vast syllabus of UKPSC mains exam,we identified few key problems
Voluminous syllabus (nearly 20 pages). everything related to subject matter has been written in syllabus(seems just  copy & paste from various competative books,but ensured that nothing should be left otherwise “Log kya kahenge ki ukpsc ne kam syllabus diya hai”) .
Is everything that is written in syllabus should be prepared as they again made tough provision through variety of questions (2marker,5marker.8marker,16 marker) .they tried to ensure that you could not think to left any topic( anyatha itana bada syllabus dena ka fayada kya hoga?)
How to prepare uttarakhand related topic?they have ensured sufficient syllabus of uttarakhand  in each paper.there is no comprehensive book.by seeing uttarakhand material in Pariksha vani/winsar, “aisa lagata hai ki isase kuchh nahi hoga ,aur kya read kiya jaye”People are suggesting various books for different topic.(we will provide strategy for this).
Various topic in polity paper, economy paper, science and technology are not given in conventional book.what and from where it should be prepared.
How to MANAGE TIME  to answer all questions.
What type of current affairs should be prepared?
such a vast syllabus has been described by UKPSC for mains that a student not prepared very well will feel that  hamse na hoga itnaukpsc has prescribe every minute aspect of topic so that you can not leave any part of syllabus(That means you have not to read any thing extra beyond syllabus).strictly follow the  the syllabus.
we are here to  make  small contribution with respect to how you simply and exactly deliver whatever you know.every one knows how much is important to do the writing practice. Since uk psc is conducting mains exam in this format (allGS) first time so every one is bothered what level/type  question paper they will ask.This is sure that they will not ask question at par UPSC .
Their questions will be a mixed bag of simple,moderate and some good question like upsc/ias exam. second challenge will be completion of paper within time.if you have practised  many good questions during your preparation stage ,you can easily manage the time,quality of answer in those three hours.

Strategy for Preparation:

  • First of all read the syllabus carefully.
  • Identify your strong and weak areas.identify what you can write easily,on what you can write littlebit and where you can write nothing.
  • Prepare the list of topics that you feel you does not have sufficient material ,search in google for basic (donot search for Ph.D) so that you can write upto 250 words.
  • Read basic uttarakhand state information ( geography , economy,history)
  • Think what can ukpsc  ask,how will you respond.
  • Read old papers of OPTIONAL subjects of  UKPSC to have various dimension and depth of question level that can be asked .
  • Revise static part regularly and do writing practice in time bound manner.
  • Learn to write same question in 20 words,50 words,125words and 250 words.
  • Do not be panic to prepare very much about uttarakhand special.Avoid reading any special book for uttarakhand history or geography at this moment.Read Pariksha vani many times and have factual information so that you can use it as per your requirement.

Why one should not read special book for uttarakhand?

From Pariksha vani you can easily answer 2 marker and 5 markers.in case of 125 word/250 word you have to attempt 5 questions out of 7 question.if you have prepared whole syllabus clearly ,you can easily avoid uttarakhand related question. Uttarakhand related big question can not be more than 2 /3 questions in section C /D. even in case of 250 words question also you can write good answer in less word with the help of  Pariksha vani.

Time bound Practice?

if there is no time limitation most of you can write better answer.when ever you practice answer writing ,you should take care of time limitation.during practice you should allot 1 minute for 1 marks.In exam start writing with speed from start itself.

Ukpsc is conducting mains exam in new format for first time.where candidate has to write answer in given space within words of limit. The pattern of mains question paper ukpsc will follow is like this..

15 questions-2 markers——30 marks(each of 20 words)

10 questions -5 markers—– 50 marks(each of 50 words)

7 questions- 8 markers ——40 marks ( each of 125 words,only 5 question is to be attempted)

7 questions- 16 markers ——80 marks ( each of 250 words,only 5 question is to be attempted)

Answer writing practice for UKPCS-2012 mains exam

we will start  answer writing practice for ukpcs -2012 mains exam  topic wise  from 21st November. every day questions will be posted ,candidate can write answer and can get feedback.First we will focus on uttarakhand related question  in various paper.strategy for syllabus in various paper  will be given Later on.

UK PCS MAINS Writing Practice -21st Nov,2015


Working together to solve global problems

Working together to solve global problems
Individual states are driven by their own policy objectives
The deadly terrorist attack by the Islamic State in Paris on Friday, which has claimed at least 129 innocent lives, serves as a grim reminder of the kind of challenges that the world is facing today. Global leaders gathered soon after the Paris incident in Antalya, Turkey, for the G20 summit. While the G20 is a forum for enhancing economic cooperation, the Paris attack shifted the attention to issues related to terrorism and security. Leaders of the G20 were united in condemning the incident and have issued a “strong statement on the fight against terrorism”.
The statement called for preventing and suppressing “terrorist acts through increased international solidarity and cooperation, in full recognition of the UN’s central role...as well as through the full implementation of the relevant international conventions, UN Security Council Resolutions and the UN Global Counter Terrorism Strategy”. However, differences often emerge when it’s time for action against the perpetrators of terrorism and those who support such acts. The G20 statement does not reflect any major change in strategy to collectively deal with terrorist organizations such as the Islamic State.
In fact, Russia is unilaterally acting against the Islamic State in Syria and now claims that some countries in the G20 are funding the organization. There are vast differences among global powers on the issue of Syria and how to deal with the Islamic State. This is the reason why it has been able to gain so much ground. Also, Russia’s intervention in the region is widely seen as an attempt to help Syrian dictator Bashar al-Assad, who the western powers want to go; and they have been helping the rebel forces in the region to attain this objective. Certainly, despite renewed commitment, things are not going to be easy either in Syria or the fight against terrorism in general.
Such differences are not restricted to matters of security and are equally profound in the area of economics and finance. Essentially, what the world needs is better coordination in dealing with the emerging economic and geopolitical challenges. The joint communique at the end of the two-day G20 summit, for example, pledged to promote financial stability, clearly communicating policy action to avoid uncertainty, and resist protectionism. However, the reality is that the individual states are driven by their own policy objectives and are not necessarily worried about the consequences on the rest of the world. Several large economies today have the lowest possible interest rates and are using quantitative easing to competitively depreciate their currency, creating distortions in other parts of the world. Leverage has increased significantly in the emerging market economies which can pose a threat to financial stability. There is no system in place today to check the excesses of monetary easing by some and its impact on others. Further, trade restrictions have grown in recent times which can have long-term consequences for the global economy.
Another area where the global leaders will have to coordinate and cooperate is climate change. Leaders will meet in Paris later this month to adopt a framework to restrict global warming. G20 has committed itself to a successful outcome of the Paris conference. Again, this will not be easy and would require a fair amount of flexibility on the part of both the developed and developing countries. Developed countries will also have to commit to transfer of technology and resources to the developing countries in order to attain the climate change objectives.
From geopolitics to economic growth and financial stability, the challenges and complexities for the world have increased a great deal, and it requires greater coordination among nation states at various levels. One of the ways to attain this is by strengthening and expanding the role of global institutions such as the UN and the International Monetary Fund so that they are in a position to devise rules which are fair to all and monitor implementation.
The war against terror or maintaining global economic and financial stability are not the responsibilities of one country or a small group of countries alone. In an interconnected and interdependent world, such challenges can only be met with greater international coordination through capable institutions.
Do countries need better coordination in dealing with emerging global challenges?

Address by the President of India, Shri Pranab Mukherjee at the twenty ninth convocation of the G.B. Pant University of Agriculture and Technology

Address by the President of India, Shri Pranab Mukherjee at the twenty ninth convocation of the G.B. Pant University of Agriculture and Technology
1. I am happy to be here for the twenty-ninth convocation of Govind Ballabh Pant University of Agriculture and Technology. At the outset, let me congratulate all the students who have received degrees and have been awarded with medals today. Your education has made you capable of entering a field which is at the heart of our country’s socio-economy. I am confident you will deliver with sincerity, industry and dedication.
2. Seventeenth November also marks the Foundation Day of this reputed university. I compliment all of you present here on this historic occasion. This institution, set up in 1960, is the first agricultural university to be established in India on the land-grant pattern of agricultural universities in the US. I would like to pay my homage to Pandit Gobind Ballabh Pant for his vision of creating a world-class university for agricultural studies and research.
Ladies and Gentlemen:
3. When Prime Minister Pandit Jawaharlal Nehru dedicated this institution to the nation 55 years ago, the whole of India looked up to this new venture with expectation. I am glad to say that this university has upheld that trust. Recognized as the birthplace of the Green Revolution, this University for over five decades has spearheaded agricultural education by introducing relevant and much-needed educational reforms. It has made substantial contributions in the area of agricultural research and technology development. Be it in the development of quality seeds or producing proficient graduates, the performance of this University has been outstanding.
4. Its initiative of establishing the Tarai Seed Development Corporation - a success story in public-private partnership – helped convert the Tarai region into a ‘seed hub’. This illustrious institution has aligned itself fully with the interests and aspirations of the farming community. Its farmer-friendly approach in extension and its dynamic teaching and research programmes have won this institute and its scientists many laurels, including the prestigious Sardar Patel ICAR Outstanding Institution Award twice. The unique feature of this University is the full integration of the students, the teachers and the experimental farms, which has led to remarkable results. I hope the leadership provided by the Vice Chancellor, Dr. Mangala Rai, a renowned agricultural scientist, will take this Institution to further heights.
Friends and dear students:
5. Agriculture is the mainstay of our economy. More than 50 percent of our population relies on this sector for earning a livelihood. Its healthy growth determines the country’s food security. Agriculture has always received top priority in our policy formulation because early in our planning process, we recognized that we ourselves have to feed our growing population which today stands at 1.28 billion. Pandit Nehru had once observed and I quote: “everything else can wait but not agriculture” (unquote). It was true then, it is true now.
6. Steps taken by the Government in the Sixties - R&D programmes, procurement and adoption of high yielding seed varieties and improved agricultural practices – resulted in rapid expansion of food production. The green revolution arrived ending the era of food imports. India is today a leading producer of rice and wheat and one of the largest exporters of these food items. The achievements would have been difficult without the support of our agricultural institutions of higher learning, and the sweat and toil of our agricultural scientists and farmers.
Ladies and Gentlemen:
7. We surmounted the challenge to food security then. But what about now, when we are confronted with decreasing land availability for agriculture coupled with a rising population? When deterioration in soil health and water quality is reducing agriculture productivity and input use efficiency?
8. We must work hard to preserve our natural resources to continuously receive four vital services, which are:
(i) Provisioning services such as food and fresh water;
(ii) Regulating services such as climate and pest regulation;
(iii) Cultural services such as educational and eco-tourism; and
(iv) Supporting services such as soil formation and nutrient cycling
9. The injudicious exploitation has already put the earth system at risk by leading to climate change and bio-diversity loss. We need new approaches to manage these risks. The climate is changing and is bound to change, but should it change so fast? What would be the increased water, energy and nutrient requirements? What strategy for mitigation and adaptation would be needed when more and more will have to be produced with less and less?
Friends:
10. The demand for rice in the world in 2030 would be 50 percent more as compared to 2004. And, it has to be produced with 30 percent less arable land as of today. The scenario in our country is similar. In this context, boosting yields, reducing harvest and post-harvest losses, and ensuring availability and access would be the key challenges.
11. One hundred forty million hectares of land is available for agriculture in our country. Yet, biotic and abiotic pressures have created adverse production conditions. About 120 million hectares of land is at various stages of degradation. Imbalanced application of fertilizers, mostly nitrogenous, has worsened crop productivity and also depreciated soil health. Adoption of more sustainable land use systems and soil management practices has become essential. Agriculture must return to its roots by rediscovering the importance of healthy soil, drawing on natural sources of plant nutrition and using fertilizers judiciously and effectively. It also calls for greater investment in technology development and its on-farm adoption, deepening of markets and remunerative prices to farmers.
12. Despite the advancements made in the last few decades, the agriculture sector in India is yet to be completely weather-resistant. After a record food grains production of 265 million tonne in 2013-14, a year of normal monsoon, the production level came down to 253 million tonne in 2014-15, when a 12 percent rainfall deficit was registered.
13. Time is ripe for new measures for sustainable intensification of agriculture. These include irrigation and continuous seed and breed improvement. 70 percent of the total water available is at present used in agriculture. This is likely to decline in the future due to other pressing demands. Also, quality of surface and ground water used for irrigation has gone down over time. Research is needed to ascertain the dynamics of toxic elements in the soil-crop system and to develop appropriate mechanisms for bio-remediation for safe use of water. Steps to enhance water harvesting, water-use efficiency and conjunctive use of water are absolutely necessary. These would result in net increase in irrigation potential. Our policies must address water productivity in totality.
14. On-farm burning of crop residues has intensified in recent years due to the use of combines for harvesting and the high cost of labour in removing crop residues by conventional methods. Bailing of residue after a harvest must form an integral part of combine harvesting. Use of crop residues as soil organic amendment in agriculture system is a good option. It will, therefore, be beneficial to develop geo-referenced residues inventory in major crop production systems across the country.
15. Insects, pests and diseases significantly reduce the quality and quantum of agricultural produce. Weather-dependent insects, pests and diseases can be modeled and integrated in a sensor-based support system to provide vital, cost-effective and timely information to farmers for taking on-farm decisions.
Friends:
16. The dimensions of food security are many. The level of nutrition in food produce is an important determinant of food sufficiency in the population. In the Global Hunger Index 2015, which combines the three indicators of under-nourishment, child under-weight and child mortality, India is ranked 80th out of 104 countries. This is totally unacceptable. We have to improve the nutritional status of our population in a time-bound manner.
17. The microbial world is the largest unexplored reservoir of bio-diversity on earth. The development of sustainable food value chains through selection, diversifying diets, and leveraging relationships to improve household nutrition practices can offer important pathways for millions of poor households in the country. The forgotten nutrient-rich millets are potential researchable crops that meet both market and nutritional objectives. Research and plantation of bio-fortified plants and trees is yet another promising area for future development.
18. Agricultural institutions of learning must focus on growth and quality improvement. Institutional tie-ups must be pursued to leverage expertise. Partnerships with other agricultural institutions must be taken up for joint research. Linkages with technical institutes must be established for improving agricultural practices using IT solutions. Collaborations with the agro-industrial sector must be forged for student internship, sensitization workshops, accessing facilities for business incubators, and networking for potential entrepreneurs.
Ladies and Gentlemen:
19. This celebrated Institution has produced many outstanding scientists and practitioners of the art and science of agriculture. You would do well to nurture the connection with alumni through structured modes of interaction. The alumni can be engaged to provide guidance in research and education, mentor students through internships, and raise resources for development.
20. This University has earned its reputation through years of hard work. It has the potential to be amongst the front-ranking institutions in the world. If due attention is paid to the ranking process, I am confident it will appear amongst the top 200 universities in the world in the next couple of years.
Friends:
21. Agriculture is the root of emergence, development and persistence of human civilization. Agricultural universities must become the focal points of agricultural growth and change. I wish this university success in great tasks that lie ahead in years to come. To the scientists of this university, I give my best wishes for further success in their endeavour to develop techniques for the production of more food from less and less land. To the graduates of this year, I would say that you are indeed a privileged lot who have had the opportunity of obtaining your training at the Govind Ballabh Pant University of Agriculture and Technology. I am sure you are aware of your responsibilities as you step out of the portals of this university. Equipped as you are with scientific knowledge and skills, I am sure that you would make significant contributions to eradicate hunger from our soil. I shall watch your progress with great interest. I wish you all happiness and a sense of fulfilment in life

17 November 2015

Making the transition to a cashless economy

Making the transition to a cashless economy

India has one of the highest cash-to-gross-domestic product ratios

It is an iron law of public policy that established players create obstacles to innovations that threaten them. One such response could be building up in the financial system. This newspaper reported on Monday that Indian banks are making it difficult for digital wallets issued by private sector companies to be used on the respective bank websites. It could be restrictions on using bank accounts to refill digital wallets or a lack of access to payment gateways. Regulators will have to take a tough stand against such rent-seeking behaviour by the banks.
Many developed countries such as Sweden are already moving towards a cashless economy on the back on new payments technology. Even developing countries such as Kenya have made immense strides in mobile payments. A drastic reduction in the use of cash has several potential benefits. First, it will attack the problem of black money by leaving behind a transaction trail. Second, there will be greater efficiency in welfare programmes as money is wired directly into the accounts of recipients. Third, there will be efficiency gains as transaction costs across the economy should also come down.
India uses too much cash for transactions. The ratio of cash to gross domestic product is one of the highest in the world—12.42% in 2014, compared with 9.47% in China or 4% in Brazil. The number of currency notes in circulation is also far higher than in other large economies; India had 76.47 billion currency notes in circulation in 2012-13 compared with 34.5 billion in the US. Some studies show that cash dominates even in malls, which are visited by people who are likely to have credit cards, so it is no surprise that cash dominates in other markets as well.
Despite the recent expansion in digital wallet usage as well as the introduction of specialized payments banks, a lot needs to be done before cash is eased out of the Indian economy. One big reason many Indians use cash intensively is that half of them do not have bank accounts, so the success of initiatives such as Jan Dhan accounts linked to Aadhaar data will be very important. A robust payments mechanism to settle digital transactions is also needed, though the National Electronic Funds Transfer and Real Time Gross Settlement services have been a good start. The Reserve Bank of India too will have to come to terms with a few issues, from figuring out what digital payments across borders means for its capital controls to how the new modes of payment affect key monetary variables such as the velocity of money.
The Indian central bank will also have to shed some of its conservatism, part of which is because it has often seen itself as the protector of banking interests rather than overall financial development.
This newspaper has argued on several occasions that India is ripe for a transition to digital payments. The innovations could come from the established banks, but it is equally possible that innovative companies in the private sector drive change. The payments system in any country should be thought of as a network. It will grow rapidly only when network effects kicks in: more people begin to use digital cash in response to more people using digital cash. The result is an exponential growth trajectory. But this can happen only if all users have equal access to the network. That is what the banks seem to be trying to block.
The finance minister mentioned in his February budget speech that India needs to move towards a cashless economy if it is to tackle the scourge of black money. There were subsequent discussions about giving incentives such as a service tax waiver when credit cards or other forms of digital settlements are used. As we have mentioned earlier, a lot of plumbing work also needs to be done. But the regulators also need to keep a sharp eye on any potential restrictive practices that banks may indulge in to maintain their current dominance over the lucrative payments business.

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UKPCS2012 FINAL RESULT SAMVEG IAS DEHRADUN

    Heartfelt congratulations to all my dear student .this was outstanding performance .this was possible due to ...