India is one of the first countries to legalize abortions. Abortions became legal in India under certain conditions only in 1971. The Medical Termination of Pregnancy Act, 1971 (“MTP Act”) was passed due to the progress made in the field of medical science with respect to safer abortions. Medical Termination of Pregnancy (Amendment) Bill, 2020 (“the Bill”) amends the MTP Act, 1971 and was introduced in the Lok Sabha on 2nd March 2020 and passed on 17th March 2020. &nbsp;

Thereafter, Rajya Sabha passed the said bill after much deliberation on 16th March 2021. Presently, it awaits the President’s assent for it to become a law. It is pertinent to state that this Bill was presented in the Parliament before and lapsed thrice, in 2014, 2017 and 2018. 
&nbsp; 
Many Writ Petitions were filed by women activists who sought permission to abort after 20 weeks due to rape or foetal abnormalities. It is commonly reported by gynecologists that severe congenital abnormalities only show up after 20 weeks and such pregnancy cannot be legally terminated under the MPT Act,1971. The new Bill aims to resolve this issue.&nbsp;

The Bill was drafted after extensive consultation with various leading NGO’s, Indian Medical Association, the Gynecologist Associations etc., along with ethics committee. &nbsp;The amendment has given a respite to women who are rape survivors, differently-abled, minors, victims of incest etc.

The Bombay High Court, in a petition by Niketa Mehta, held that an abortion of a 24 week old fetus, which had a congenital heart defect, to be in contravention of the MTP Act, 1971, which was also later affirmed by the Hon’ble Supreme Court of India. &nbsp;

This case raised issues around abortion laws after 20 weeks and the upbringing of a child suffering from incurable defects. This case shed light on the loopholes in the MTP Act, 1971 and prompted the government to reconsider abortion laws in the country.

The Bill regulates the state of pregnancy, specifically focussing on the increase of the time limit for abortion. Prior to the amendment, abortion undertaken within 12 weeks of conception required the opinion of a doctor and when done between 12-20 weeks, required the opinion of two doctors. The current MTP Act, 1971 does not have any provision for abortion after 20 weeks.&nbsp;

However, the amendment now allows an abortion to be done up to 20 weeks with only one doctor’s advice instead of two and two doctor’s advice in between 20-24 weeks in special cases. Additionally, the Bill also gives authority to States, to decide if a pregnancy may be terminated due to foetal abnormalities after 24 weeks, by way of setting up State-level Medical Boards. The said Board is to consist of a Paediatrician, Radiologist/ Sinologist, Gynecologist and other such members notified by the concerned State Government.

Countries all over the world have put limitations and differing time frames for allowing abortions which are based on the health of the mother and the foetus, along with the possible risk to the mother. One strong viewpoint that is put forth by this Bill is that the State has an obligation to protect all life forms, which also includes that of a foetus.&nbsp;

The Bill gives relief in this aspect by permitting termination of pregnancy after 24 weeks after the approval of the Medical Board, on diagnosis of foetal abnormalities. Having said that, in cases of rape exceeding 24 weeks of pregnancy, only recourse left was to approach the courts through a Writ Petition.&nbsp;

Both, the Act and the Bill, specify that abortion should only be performed by gynecologists or obstetricians and not by untrained persons, which commonly happens in rural areas, where there is a shortage of doctors. As for the privacy of the woman is concerned, the registered medical practitioner is permitted to reveal the details of the patient to only a person who has been authorized by law. Upon violation, the violating medical official is liable to be imprisoned for a year, or fined, or both.&nbsp;

In addition to extending the time frame for terminating pregnancy, the Central Government has also taken a progressive outlook on women, keeping in mind the current changing times. The Bill mentions “woman” and “her partner” instead of a “married woman” and “her husband”, showcasing open-mindedness of the society. &nbsp;The Central Government acknowledges the failure of contraception as well. It further gives relief to women undergoing stress of getting permissions from various courts due to the pressing time factor in pregnancy.&nbsp;

It is noteworthy that India is the first country to pass a legislation which gives mothers and their partners the right to a paid leave following a miscarriage or stillbirth, followed by New Zealand in 2021. More specifically, the Maternity Benefit (Amendment) Act, 1961, extends miscarriage leave to six weeks of paid leave. Even today, countries such as the UK, United States of America, Brazil and Germany do not give as much autonomy to a pregnant woman as does India.&nbsp;

It is commendable that the Central Government has taken such a bold stand while balancing the diverse cultures, traditions and schools of thought that our country maintains. With the hope of this Bill turning into an Amendment, one can be assured that the country is on the road to advancement, addressing women issues more fiercely than ever.&nbsp;

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

India is one of the first countries to legalize abortions. Abortions became legal in India under certain conditions only in 1971. The Medical Termination of Pregnancy Act, 1971 (“MTP Act”) was passed due to the progress made in the field of medical science with respect to safer abortions.

India is one of the first countries to legalize abortions. Abortions became legal in India under certain conditions only in 1971. The Medical Termination of Pregnancy Act, 1971 (“MTP Act”) was passed due to the progress made in the field of medical science with respect to safer abortions. Medical Termination of Pregnancy (Amendment) Bill, 2020 (“the Bill”) amends the MTP Act, 1971 and was introduced in the Lok Sabha on 2nd March 2020 and passed on 17th March 2020. Thereafter, Rajya Sabha passed the said bill after much deliberation on 16th March 2021. Presently, it awaits the President’s assent for it to become a law. It is pertinent to state that this Bill was presented in the Parliament before and lapsed thrice, in 2014, 2017 and 2018. Many Writ Petitions were filed by women activists who sought permission to abort after 20 weeks due to rape or foetal abnormalities. It is commonly reported by gynecologists that severe congenital abnormalities only show up after 20 weeks and such pregnancy cannot be legally terminated under the MPT Act,1971. The new Bill aims to resolve this issue. The Bill was drafted after extensive consultation with various leading NGO’s, Indian Medical Association, the Gynecologist Associations etc., along with ethics committee. The amendment has given a respite to women who are rape survivors, differently-abled, minors, victims of incest etc. The Bombay High Court, in a petition by Niketa Mehta, held that an abortion of a 24 week old fetus, which had a congenital heart defect, to be in contravention of the MTP Act, 1971, which was also later affirmed by the Hon’ble Supreme Court of India. This case raised issues around abortion laws after 20 weeks and the upbringing of a child suffering from incurable defects. This case shed light on the loopholes in the MTP Act, 1971 and prompted the government to reconsider abortion laws in the country. The Bill regulates the state of pregnancy, specifically focussing on the increase of the time limit for abortion. Prior to the amendment, abortion undertaken within 12 weeks of conception required the opinion of a doctor and when done between 12-20 weeks, required the opinion of two doctors. The current MTP Act, 1971 does not have any provision for abortion after 20 weeks. However, the amendment now allows an abortion to be done up to 20 weeks with only one doctor’s advice instead of two and two doctor’s advice in between 20-24 weeks in special cases. Additionally, the Bill also gives authority to States, to decide if a pregnancy may be terminated due to foetal abnormalities after 24 weeks, by way of setting up State-level Medical Boards. The said Board is to consist of a Paediatrician, Radiologist/ Sinologist, Gynecologist and other such members notified by the concerned State Government. Countries all over the world have put limitations and differing time frames for allowing abortions which are based on the health of the mother and the foetus, along with the possible risk to the mother. One strong viewpoint that is put forth by this Bill is that the State has an obligation to protect all life forms, which also includes that of a foetus. The Bill gives relief in this aspect by permitting termination of pregnancy after 24 weeks after the approval of the Medical Board, on diagnosis of foetal abnormalities. Having said that, in cases of rape exceeding 24 weeks of pregnancy, only recourse left was to approach the courts through a Writ Petition. Both, the Act and the Bill, specify that abortion should only be performed by gynecologists or obstetricians and not by untrained persons, which commonly happens in rural areas, where there is a shortage of doctors. As for the privacy of the woman is concerned, the registered medical practitioner is permitted to reveal the details of the patient to only a person who has been authorized by law. Upon violation, the violating medical official is liable to be imprisoned for a year, or fined, or both. In addition to extending the time frame for terminating pregnancy, the Central Government has also taken a progressive outlook on women, keeping in mind the current changing times. The Bill mentions “woman” and “her partner” instead of a “married woman” and “her husband”, showcasing open-mindedness of the society. The Central Government acknowledges the failure of contraception as well. It further gives relief to women undergoing stress of getting permissions from various courts due to the pressing time factor in pregnancy. It is noteworthy that India is the first country to pass a legislation which gives mothers and their partners the right to a paid leave following a miscarriage or stillbirth, followed by New Zealand in 2021. More specifically, the Maternity Benefit (Amendment) Act, 1961, extends miscarriage leave to six weeks of paid leave. Even today, countries such as the UK, United States of America, Brazil and Germany do not give as much autonomy to a pregnant woman as does India. It is commendable that the Central Government has taken such a bold stand while balancing the diverse cultures, traditions and schools of thought that our country maintains. With the hope of this Bill turning into an Amendment, one can be assured that the country is on the road to advancement, addressing women issues more fiercely than ever. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Opinion | Medical Termination of Pregnancy (Amendment) Bill, 2020: A Short Analysis

The Reserve Bank of India (RBI) recently constituted a working group on digital lending -- including lending through online platforms and mobile applications. This step was a result of various instances where the digital lending applications were in news for all the wrong reasons.

This reasons included reports of people committing suicide due to alleged harassment by such lenders.

While the online lenders have provided an ease never seen before, mushrooming of various unregulated applications entails downsides such as lack of verification of the persons involved, false claims, theft of personal data, non-transparency of transactions, violation of extant guidelines on outsourcing of financial services and Fair Practices Code etc.&nbsp;

In view of such lack of safeguards, a lot of individuals/small businesses have been lured by a growing number of unauthorised and unverified digital lending platforms and mobile applications, claiming to grant instant and hassle-free loans. The RBI, therefore, by virtue of a press release dated December 23, 2020, bearing No. 2020-2021/819 (“Press Release”), issued a public warning against such unauthorised digital lending platforms and/or applications over deployment of questionable recovery methods and the charging of extravagant interest rates along with other hidden charges by such lenders.

The RBI’s intent through the circular was to caution the public at large, especially retail individuals, small traders, and other small-scale borrowers.&nbsp;

Many of the individual or small businesses do not have the requisite documents which are required to obtain credible loans from the accredited banking institutions and thus, they opt for money lending services which are informal and less stringent.&nbsp;

This makes such small businesses more prone to getting entrapped in such money lending schemes.&nbsp;

Therefore, the RBI has urged the borrowers to verify the antecedents of such lenders offering loans on digital lending platforms or through mobile applications.

Earlier, the RBI had also issued an official notification dated June 24, 2020 (“Notification”) mandating strict adherence to the Fair Practices Code and outsourcing guidelines for the loans sourced by accredited banks and Non-Banking Financial Companies (NBFCs) through such digital lending platforms.&nbsp;

The notification prescribes that banks and NBFCs offer lending services either directly through their own digital platforms or through a digital lending platform under an outsourcing arrangement. However, in most cases, these digital platforms and mobile applications do not disclose the name of the bank/NBFC and thus, the customers are left at their mercy without having access to a systematised grievance redressal mechanism, which is otherwise available under the regulatory framework.&nbsp;

The RBI had also directed such lending platforms and mobile applications to issue a sanction letter to the concerned borrowers on the letter head of the concerned bank/NBFC before the execution of the loan agreement.&nbsp;

Therefore, to protect the general public from fraudulent activities of unauthorised money lenders providing such services through their own digital lending platform or through an outsourced lending platform, the RBI categorically directed them to strictly adhere to the Fair Practices Code in true letter and spirit.&nbsp;

RBI has also placed the onus of compliance obligations under the regulatory instructions regarding outsourcing of financial and IT services with the concerned bank/NBFC and not on the outsourced agency. In view thereof, the RBI has further directed the banks and NBFCs, engaging digital lending platforms as their agents to source borrowers and/or to recover dues to: (a) disclose the name of the digital lending platforms engaged as agents on their websites; (b) to disclose to the customer the name of the bank/ NBFC on whose behalf such digital lending platforms are interacting with him; (c) to issue the sanction letter to the borrower on the letter head of the concerned bank/ NBFC before execution of the loan agreement; (d) to furnish a copy of the loan agreement along with a copy all enclosures quoted in the loan agreement to the borrowers at the time of sanction/ disbursement of loans; (e) to ensure effective oversight and monitoring over such digital lending platforms; and (f) to undertake adequate efforts towards creation of awareness about a proper grievance redressal mechanism. Any violation thereof by banks and/ or NBFCs will be viewed strictly by the RBI.

Recently however, in December 2020, owing to the increased reporting of incidents pertaining to unauthorised digital transactions, the RBI was forced to publish a press release to alert the general public of such activities.&nbsp;

The RBI also advised consumers to never share copies of their KYC documents with unidentified persons or unverified/unauthorised mobile applications. Further, the RBI has repeatedly advised for reporting such activities either to the concerned law enforcement agencies or by using the Sachet portal to file online complaints.

It is evident that the RBI is taking stern and imperative measures against such unauthorised lending digital platforms. The steps to eradicate exploitative practices of unauthorised lending need to be tackled with multi-pronged approach consisting of regulation, increase in awareness and forthrightness on the part of genuine players in raising the transparency standards of lending.&nbsp;

The steps taken by the RBI appear to be in the right direction and an earnest step towards the eradication of predatory practices by such unauthorised lending players and for protection of the data and privacy of such lenders.

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

The Reserve Bank of India (RBI) recently constituted a working group on digital lending -- including lending through online platforms and mobile applications. This step was a result of various instances where the digital lending applications were in news for all the wrong reasons.

The Reserve Bank of India (RBI) recently constituted a working group on digital lending -- including lending through online platforms and mobile applications. This step was a result of various instances where the digital lending applications were in news for all the wrong reasons. This reasons included reports of people committing suicide due to alleged harassment by such lenders. While the online lenders have provided an ease never seen before, mushrooming of various unregulated applications entails downsides such as lack of verification of the persons involved, false claims, theft of personal data, non-transparency of transactions, violation of extant guidelines on outsourcing of financial services and Fair Practices Code etc. In view of such lack of safeguards, a lot of individuals/small businesses have been lured by a growing number of unauthorised and unverified digital lending platforms and mobile applications, claiming to grant instant and hassle-free loans. The RBI, therefore, by virtue of a press release dated December 23, 2020, bearing No. 2020-2021/819 (“Press Release”), issued a public warning against such unauthorised digital lending platforms and/or applications over deployment of questionable recovery methods and the charging of extravagant interest rates along with other hidden charges by such lenders. The RBI’s intent through the circular was to caution the public at large, especially retail individuals, small traders, and other small-scale borrowers. Many of the individual or small businesses do not have the requisite documents which are required to obtain credible loans from the accredited banking institutions and thus, they opt for money lending services which are informal and less stringent. This makes such small businesses more prone to getting entrapped in such money lending schemes. Therefore, the RBI has urged the borrowers to verify the antecedents of such lenders offering loans on digital lending platforms or through mobile applications. Earlier, the RBI had also issued an official notification dated June 24, 2020 (“Notification”) mandating strict adherence to the Fair Practices Code and outsourcing guidelines for the loans sourced by accredited banks and Non-Banking Financial Companies (NBFCs) through such digital lending platforms. The notification prescribes that banks and NBFCs offer lending services either directly through their own digital platforms or through a digital lending platform under an outsourcing arrangement. However, in most cases, these digital platforms and mobile applications do not disclose the name of the bank/NBFC and thus, the customers are left at their mercy without having access to a systematised grievance redressal mechanism, which is otherwise available under the regulatory framework. The RBI had also directed such lending platforms and mobile applications to issue a sanction letter to the concerned borrowers on the letter head of the concerned bank/NBFC before the execution of the loan agreement. Therefore, to protect the general public from fraudulent activities of unauthorised money lenders providing such services through their own digital lending platform or through an outsourced lending platform, the RBI categorically directed them to strictly adhere to the Fair Practices Code in true letter and spirit. RBI has also placed the onus of compliance obligations under the regulatory instructions regarding outsourcing of financial and IT services with the concerned bank/NBFC and not on the outsourced agency. In view thereof, the RBI has further directed the banks and NBFCs, engaging digital lending platforms as their agents to source borrowers and/or to recover dues to: (a) disclose the name of the digital lending platforms engaged as agents on their websites; (b) to disclose to the customer the name of the bank/ NBFC on whose behalf such digital lending platforms are interacting with him; (c) to issue the sanction letter to the borrower on the letter head of the concerned bank/ NBFC before execution of the loan agreement; (d) to furnish a copy of the loan agreement along with a copy all enclosures quoted in the loan agreement to the borrowers at the time of sanction/ disbursement of loans; (e) to ensure effective oversight and monitoring over such digital lending platforms; and (f) to undertake adequate efforts towards creation of awareness about a proper grievance redressal mechanism. Any violation thereof by banks and/ or NBFCs will be viewed strictly by the RBI. Recently however, in December 2020, owing to the increased reporting of incidents pertaining to unauthorised digital transactions, the RBI was forced to publish a press release to alert the general public of such activities. The RBI also advised consumers to never share copies of their KYC documents with unidentified persons or unverified/unauthorised mobile applications. Further, the RBI has repeatedly advised for reporting such activities either to the concerned law enforcement agencies or by using the Sachet portal to file online complaints. It is evident that the RBI is taking stern and imperative measures against such unauthorised lending digital platforms. The steps to eradicate exploitative practices of unauthorised lending need to be tackled with multi-pronged approach consisting of regulation, increase in awareness and forthrightness on the part of genuine players in raising the transparency standards of lending. The steps taken by the RBI appear to be in the right direction and an earnest step towards the eradication of predatory practices by such unauthorised lending players and for protection of the data and privacy of such lenders. (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Lending on digital platforms and mobile applications

The emerging consequences of COVID-19 particularly in the field of healthcare and medicine gave a new fillip to the online medical teleconsultation. In an effort to govern the medical teleconsultation the Ministry of Health and Family Welfare (“MoHFW”), Government of India issued the ‘Telemedicine Practise Guidelines’ for governing the practice of online medical consultation in India on 25 March 2020. The Telemedicine Practise Guidelines (“Guidelines”) were made by the Board of Governors under the Indian Medical Council Act, 1956, in consultation with the Niti Aayog.

In view of the prevailing COVID19 pandemic, it was felt that it is safer for other patients as well as the health workers to provide consultation and initial treatment through information and communication technologies. The Guidelines were promulgated to achieve quality healthcare in a cost-effective manner.&nbsp;

The practice of online medical consultation (through the internet or other communication technologies) has been prevalent across the world. Considering the nature of medical emergencies, effective and immediate guidance by a medical practitioner can be the difference between life and death. This practice is better known as ‘telemedicine’.

The World Health Organisation (“WHO”) defines ‘telemedicine’ as – “The delivery of health care services, where distance is a critical factor, by all health care professionals using information and communication technologies for the exchange of valid information for diagnosis, treatment and prevention of disease and injuries, research and evaluation, and for the continuing education of health care providers, all in the interests of advancing the health of individuals and their communities.”

WHO has further recognised four essential features which are intrinsic to the practice of ‘telemedicine’ – (i) Providing clinical support; (ii) Overcoming geographical barriers; (iii) Use of various types of information &amp; communications technology; and (iv) Improvement of health outcomes.

Chapter 1 of the said Guidelines provide for the Scope and Application thereof. It provides that the Guidelines are meant for Registered Medical Practitioners (RMP) only, those who are enrolled in the State Medical Register or the Indian Medical Register. Further, RMPs can provide online consultation to and from any part of India adhering to the applicable rules and regulations. RMPs are free to use any information or communication technology such as telephones, messages, WhatsApp, Facebook messenger etc.

The RMPs may ask for any information (Such as complaints, symptoms etc.) from the patients, and the latter will be responsible for the accuracy of such information. The RMP has the responsibility to realise when the disease or condition is not adequately addressable through online consultation. Guideline 3.7.2, makes it incumbent on the RMPs to keep all records of the online consultation including reports, documents, prescriptions etc.&nbsp;

The Board of Governors, which superseded the Medical Council of India by virtue of Section 3A of the Indian Medical Council Act, 1956, has the authority to make regulations under Section 33 thereof. The Guidelines were brought about as an amendment to the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002.

The amendment added Regulation 3.8 to the aforesaid regulations, which stated that the Guidelines shall be included in the Appendix 5 of the aforesaid Regulations, thereby giving them statutory force.&nbsp;

The Draft Indian Medical Council (Professional Conduct, Etiquette and Ethics) (Amendment) Regulations, 2020 along with the Guidelines were placed for approval before the MoHFW on the 24 April 2020, and the approval was accorded to these amendments on 25 March 2020.

Thereafter, in view of the urgency, the Guidelines were published on the website of the Medical Council of India for use by the role players. The Guidelines were subsequently also published in the Gazette of India on 12 May 2020 and were made effective from 25 March 2020.

Interestingly, the framework of governance of the medical education and medical practice field was again revised by virtue of the National Medical Commission, Act 2019, which has come into effect from 25.09.2020. Therefore, the Indian Medical Council Act, 1956 stood repealed and the Board of Governors was replaced by the National Medical Commission.&nbsp;

There is no specific savings clause in the Indian Medical Council Act 1956, therefore the effect of its repeal would be governed by Section 60(2) of the National Medical Commission Act, 2019, derived from Section 6 of the General Clauses Act, 1897.

Since there is no specific mention of the effect of the new Act of 2019 on the Guidelines, they shall continue to govern the field of telemedicine under the erstwhile Act of 1956.&nbsp;

Additionally, the Act of 2019 also specifically provides for a transitory provision under Section 61 (2), the purport of which would mean that until the National Medical Commission amends or issues new Guidelines, the extant Guidelines, in effect from 25.03.2020, shall continue to have effect.

Since the Guidelines are included in Appendix 5 of the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 and were brought about as an amendment to the said regulations, their existence is protected under the transitory provisions of the Act of 2019. Section 61 (2) of the Act of 2019 states that the rules and regulations framed under the Act of 1956 shall continue to be in force and operate, till new rules and regulations are issued by the National Medical Commission.&nbsp;

In view of the above, it is abundantly clear that the Guidelines have statutory force and are binding on the RMPs. Notably, since the Guidelines themselves provide for strict adherence of the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 and any violation thereof, would constitute ‘Misconduct’ under the regulations.

This implies that if online consultation patients have a grievance against the conduct of an RMP, they can initiate disciplinary proceedings against them at the State Medical Council, and if found guilty of misconduct or negligence, they will be punished under the said regulations. Additionally, the protection of data needs to be given prime importance and as per the Information Technology Act (in view of the sensitive personal data involved).

(Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

The emerging consequences of COVID-19 particularly in the field of healthcare and medicine gave a new fillip to the online medical teleconsultation. In an effort to govern the medical teleconsultation the Ministry of Health and Family Welfare (“MoHFW”), Government of India issued the ‘Telemedicine Practise Guidelines’ for governing the practice of online medical consultation in India on 25 March 2020.

The emerging consequences of COVID-19 particularly in the field of healthcare and medicine gave a new fillip to the online medical teleconsultation. In an effort to govern the medical teleconsultation the Ministry of Health and Family Welfare (“MoHFW”), Government of India issued the ‘Telemedicine Practise Guidelines’ for governing the practice of online medical consultation in India on 25 March 2020. The Telemedicine Practise Guidelines (“Guidelines”) were made by the Board of Governors under the Indian Medical Council Act, 1956, in consultation with the Niti Aayog. In view of the prevailing COVID19 pandemic, it was felt that it is safer for other patients as well as the health workers to provide consultation and initial treatment through information and communication technologies. The Guidelines were promulgated to achieve quality healthcare in a cost-effective manner. The practice of online medical consultation (through the internet or other communication technologies) has been prevalent across the world. Considering the nature of medical emergencies, effective and immediate guidance by a medical practitioner can be the difference between life and death. This practice is better known as ‘telemedicine’. The World Health Organisation (“WHO”) defines ‘telemedicine’ as – “The delivery of health care services, where distance is a critical factor, by all health care professionals using information and communication technologies for the exchange of valid information for diagnosis, treatment and prevention of disease and injuries, research and evaluation, and for the continuing education of health care providers, all in the interests of advancing the health of individuals and their communities.” WHO has further recognised four essential features which are intrinsic to the practice of ‘telemedicine’ – (i) Providing clinical support; (ii) Overcoming geographical barriers; (iii) Use of various types of information & communications technology; and (iv) Improvement of health outcomes. Chapter 1 of the said Guidelines provide for the Scope and Application thereof. It provides that the Guidelines are meant for Registered Medical Practitioners (RMP) only, those who are enrolled in the State Medical Register or the Indian Medical Register. Further, RMPs can provide online consultation to and from any part of India adhering to the applicable rules and regulations. RMPs are free to use any information or communication technology such as telephones, messages, WhatsApp, Facebook messenger etc. The RMPs may ask for any information (Such as complaints, symptoms etc.) from the patients, and the latter will be responsible for the accuracy of such information. The RMP has the responsibility to realise when the disease or condition is not adequately addressable through online consultation. Guideline 3.7.2, makes it incumbent on the RMPs to keep all records of the online consultation including reports, documents, prescriptions etc. The Board of Governors, which superseded the Medical Council of India by virtue of Section 3A of the Indian Medical Council Act, 1956, has the authority to make regulations under Section 33 thereof. The Guidelines were brought about as an amendment to the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002. The amendment added Regulation 3.8 to the aforesaid regulations, which stated that the Guidelines shall be included in the Appendix 5 of the aforesaid Regulations, thereby giving them statutory force. The Draft Indian Medical Council (Professional Conduct, Etiquette and Ethics) (Amendment) Regulations, 2020 along with the Guidelines were placed for approval before the MoHFW on the 24 April 2020, and the approval was accorded to these amendments on 25 March 2020. Thereafter, in view of the urgency, the Guidelines were published on the website of the Medical Council of India for use by the role players. The Guidelines were subsequently also published in the Gazette of India on 12 May 2020 and were made effective from 25 March 2020. Interestingly, the framework of governance of the medical education and medical practice field was again revised by virtue of the National Medical Commission, Act 2019, which has come into effect from 25.09.2020. Therefore, the Indian Medical Council Act, 1956 stood repealed and the Board of Governors was replaced by the National Medical Commission. There is no specific savings clause in the Indian Medical Council Act 1956, therefore the effect of its repeal would be governed by Section 60(2) of the National Medical Commission Act, 2019, derived from Section 6 of the General Clauses Act, 1897. Since there is no specific mention of the effect of the new Act of 2019 on the Guidelines, they shall continue to govern the field of telemedicine under the erstwhile Act of 1956. Additionally, the Act of 2019 also specifically provides for a transitory provision under Section 61 (2), the purport of which would mean that until the National Medical Commission amends or issues new Guidelines, the extant Guidelines, in effect from 25.03.2020, shall continue to have effect. Since the Guidelines are included in Appendix 5 of the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 and were brought about as an amendment to the said regulations, their existence is protected under the transitory provisions of the Act of 2019. Section 61 (2) of the Act of 2019 states that the rules and regulations framed under the Act of 1956 shall continue to be in force and operate, till new rules and regulations are issued by the National Medical Commission. In view of the above, it is abundantly clear that the Guidelines have statutory force and are binding on the RMPs. Notably, since the Guidelines themselves provide for strict adherence of the Indian Medical Council (Professional Conduct, Etiquette and Ethics) Regulations, 2002 and any violation thereof, would constitute ‘Misconduct’ under the regulations. This implies that if online consultation patients have a grievance against the conduct of an RMP, they can initiate disciplinary proceedings against them at the State Medical Council, and if found guilty of misconduct or negligence, they will be punished under the said regulations. Additionally, the protection of data needs to be given prime importance and as per the Information Technology Act (in view of the sensitive personal data involved). (Disclaimer: The views of the writer do not represent the views of WION or ZMCL. Nor does WION or ZMCL endorse the views of the writer.)

Opinion: Patient can take action against doctor over grievances about telemedicine consultation

The Ministry of Human Resource Development (MHRD) has released the National Education Policy 2020 (“NEP”), laying the path for large scale transformational reforms in both school and higher education sectors.&nbsp;

According to the government, it is the first education policy of the 21st century and replaces the thirty-four-year-old National Policy on Education (NPE), 1986 which was modified in 1992.

The NEP is erected on the foundational pillars of ‘Access, Equity, Quality, Affordability and Accountability’. This policy is aligned to the 2030 Agenda for Sustainable Development and aims to revise and overhaul the education system in our country, including its regulations and governance by making both school and college education more holistic, flexible and multidisciplinary.

According to the government, the implementation of previous policies has focused largely on issues of access and equity. It may be noted that the Gross Enrolment Ratio (GER) in the country (as recorded last in 2018) currently sits at 26..3 per cent.&nbsp;

The GRE depicts the ratio of those students who are successfully enrolling into higher education institutions after the end of their initial schooling years. &nbsp;Further, it may be noted that due to deep-rooted traditional learning methods, the education system in India is not able to adapt with new streams of education.

Amongst the other changes, the NEP proposes to bring about the change in the name of the ministry from the MHRD to the new Education Ministry. The NEP further aims to ensure that 6 per cent of our GDP is spent on education for providing implementation of this policy to the country.&nbsp;

Further, the central government, through this policy has more outreach than the previous NPE by encompassing students from age of 3 years instead of the previous age of 5 years. It also proposes reforms for teachers by mainstreaming their governing regulations. The important highlights of the NEP are enumerated in the succeeding paras.

School Education

The NEP emphasizes on ensuring universal access to school education at all levels i.e. from pre-school to secondary. Further, the earlier structure of ‘10+2’ has been replaced by a ‘5+3+3+4’ curricular structure corresponding to ages 3-8, 8-11, 11-14, and 14-18 years respectively. This will bring the hitherto uncovered age group of 3-6 years under school curriculum, which has been recognized globally as the crucial stage for development of mental faculties of a child.

All students will take school examinations in grades 3, 5 and 8 which will be conducted by the appropriate authority. Board exams for grades 10 and 12 will be continued but redesigned with holistic development as the central aim. This additional classification of students based on age groups helps not only the government to implement age specific norms for educating the students but also helps the schools in developing curriculums and syllabi which imparts knowledge more efficiently based on age.

Further, the Policy also aims to blur the lines between the current, rigid ‘streams’ concept, in which the students are mandated to opt for either arts, commerce or sciences. It proposes to give enhanced degree of flexibility to students after grade 10 board by allowing them to choose subjects of their choices rather than force streams on them.

The NEP ambitiously proposes to implement a three-language formula. Under this, it is proposed that two out of three languages i.e. mother tongue/local language/regional language will be used as the medium of instruction at least till Grade 5, but may be extended further till Grade 8 and beyond.

With regard to new bodies being set up, a new National Assessment Centre, PARAKH (Performance Assessment, Review, and Analysis of Knowledge for Holistic Development), will be set up as a standard-setting body for students up to class 12.

Higher Education

There has been consistency shown by NEP by with respect to the continuous reforms related to the higher education sphere in our country. One of the main challenges with higher education in our country is low GER. The Policy aims to tackle the same by making higher education policies much more flexible in favour of the students and providing them with more options to complete their higher education.

The major changes include implementing a four-year undergraduate programme. This program will be multi-disciplinary in nature and will allow the students with multiple entry and exit points with appropriate certifications.&nbsp;

Additionally, a digital credit bank system has also been proposed to be incorporated wherein, if a student happens to stop pursuing a particular degree, but has attained a certain number of credits, he/she may transfer the same to some other institution and can avoid starting at that institution afresh.

For regulation of higher education, the Policy proposes to form a singular umbrella body regulating higher education in India, called the “Higher Education Commission of India” (HECI), however, excluding medicine and legal education. A National Testing Agency will also be set up to conduct a singular exam for higher education institutes.

Under the new Policy, High performing Indian universities will be encouraged to set up campuses in other countries, and similarly, selected universities e.g., those from among the top 100 universities in the world will be facilitated to operate in India.

Teacher Education

Keeping in mind the role that teachers play in any educational set-up, a new and comprehensive National Curriculum Framework for Teacher Education, NCFTE 2021, will be formulated by the NCTE in consultation with NCERT. It has been proposed that by 2030, the minimum qualification for teaching will be a four-year B.Ed. degree. Stringent action will be taken against substandard standalone Teacher Education Institutions (TEIs).

In view of the existing educational regime, NEP is a welcome and progressive change for the development of education landscape in India. However, the implementation of the NEP would also require efficient coordination between the Centre and the State Governments, since education is a concurrent subject under the Constitution of India.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

The Ministry of Human Resource Development (MHRD) has released the National Education Policy 2020 (“NEP”), laying the path for large scale transformational reforms in both school and higher education sectors.

The Ministry of Human Resource Development (MHRD) has released the National Education Policy 2020 (“NEP”), laying the path for large scale transformational reforms in both school and higher education sectors. According to the government, it is the first education policy of the 21st century and replaces the thirty-four-year-old National Policy on Education (NPE), 1986 which was modified in 1992. The NEP is erected on the foundational pillars of ‘Access, Equity, Quality, Affordability and Accountability’. This policy is aligned to the 2030 Agenda for Sustainable Development and aims to revise and overhaul the education system in our country, including its regulations and governance by making both school and college education more holistic, flexible and multidisciplinary. According to the government, the implementation of previous policies has focused largely on issues of access and equity. It may be noted that the Gross Enrolment Ratio (GER) in the country (as recorded last in 2018) currently sits at 26..3 per cent. The GRE depicts the ratio of those students who are successfully enrolling into higher education institutions after the end of their initial schooling years. Further, it may be noted that due to deep-rooted traditional learning methods, the education system in India is not able to adapt with new streams of education. Amongst the other changes, the NEP proposes to bring about the change in the name of the ministry from the MHRD to the new Education Ministry. The NEP further aims to ensure that 6 per cent of our GDP is spent on education for providing implementation of this policy to the country. Further, the central government, through this policy has more outreach than the previous NPE by encompassing students from age of 3 years instead of the previous age of 5 years. It also proposes reforms for teachers by mainstreaming their governing regulations. The important highlights of the NEP are enumerated in the succeeding paras. School Education The NEP emphasizes on ensuring universal access to school education at all levels i.e. from pre-school to secondary. Further, the earlier structure of ‘10+2’ has been replaced by a ‘5+3+3+4’ curricular structure corresponding to ages 3-8, 8-11, 11-14, and 14-18 years respectively. This will bring the hitherto uncovered age group of 3-6 years under school curriculum, which has been recognized globally as the crucial stage for development of mental faculties of a child. All students will take school examinations in grades 3, 5 and 8 which will be conducted by the appropriate authority. Board exams for grades 10 and 12 will be continued but redesigned with holistic development as the central aim. This additional classification of students based on age groups helps not only the government to implement age specific norms for educating the students but also helps the schools in developing curriculums and syllabi which imparts knowledge more efficiently based on age. Further, the Policy also aims to blur the lines between the current, rigid ‘streams’ concept, in which the students are mandated to opt for either arts, commerce or sciences. It proposes to give enhanced degree of flexibility to students after grade 10 board by allowing them to choose subjects of their choices rather than force streams on them. The NEP ambitiously proposes to implement a three-language formula. Under this, it is proposed that two out of three languages i.e. mother tongue/local language/regional language will be used as the medium of instruction at least till Grade 5, but may be extended further till Grade 8 and beyond. With regard to new bodies being set up, a new National Assessment Centre, PARAKH (Performance Assessment, Review, and Analysis of Knowledge for Holistic Development), will be set up as a standard-setting body for students up to class 12. Higher Education There has been consistency shown by NEP by with respect to the continuous reforms related to the higher education sphere in our country. One of the main challenges with higher education in our country is low GER. The Policy aims to tackle the same by making higher education policies much more flexible in favour of the students and providing them with more options to complete their higher education. The major changes include implementing a four-year undergraduate programme. This program will be multi-disciplinary in nature and will allow the students with multiple entry and exit points with appropriate certifications. Additionally, a digital credit bank system has also been proposed to be incorporated wherein, if a student happens to stop pursuing a particular degree, but has attained a certain number of credits, he/she may transfer the same to some other institution and can avoid starting at that institution afresh. For regulation of higher education, the Policy proposes to form a singular umbrella body regulating higher education in India, called the “Higher Education Commission of India” (HECI), however, excluding medicine and legal education. A National Testing Agency will also be set up to conduct a singular exam for higher education institutes. Under the new Policy, High performing Indian universities will be encouraged to set up campuses in other countries, and similarly, selected universities e.g., those from among the top 100 universities in the world will be facilitated to operate in India. Teacher Education Keeping in mind the role that teachers play in any educational set-up, a new and comprehensive National Curriculum Framework for Teacher Education, NCFTE 2021, will be formulated by the NCTE in consultation with NCERT. It has been proposed that by 2030, the minimum qualification for teaching will be a four-year B.Ed. degree. Stringent action will be taken against substandard standalone Teacher Education Institutions (TEIs). In view of the existing educational regime, NEP is a welcome and progressive change for the development of education landscape in India. However, the implementation of the NEP would also require efficient coordination between the Centre and the State Governments, since education is a concurrent subject under the Constitution of India. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

The new Education Policy, 2020

As an offshoot to the unravelling of Punjab and Maharashtra Cooperative Bank debacle in 2019, the President, in exercise of the powers conferred by Clause (1) of Article 123 of the Constitution of India, promulgated the Banking Regulation (Amendment) Ordinance, 2020 (hereinafter referred to as the “Ordinance”) on 26.06.2020.&nbsp;

The ordinance has primarily been promulgated for bringing cooperative banks under the supervisory powers of the Reserve Bank of India (hereinafter referred to as “RBI”), in order to protect the interest of depositors across the country and strengthen cooperative banks by improving governance and oversight. The said intention of the central government was first intimated to the public by the finance minister, Nirmala Sitharaman during the presentation of the annual budget of the current financial year.

The ordinance effectively amends the Banking Regulation Act, 1949 (hereinafter referred to as the “Principal Act”) by extending powers already available with the Reserve Bank of India, in respect of other banks, to co-operative Banks as well for better management, sound banking regulation, ensuring professionalism and enabling their access to capital.&nbsp;

The ordinance does not take away the powers of the state registrars of co-operative societies under state co-operative laws. Furthermore, the ordinance does not affect Primary Agricultural Credit Societies or co-operative societies, having a primary object and principal business of long-term finance for agricultural development, and which do not use the words “bank”, “banker” or “banking” and do not act as drawees of cheques. The ordinance also amends Section 45 of the Principal Act, to enable making of a scheme of reconstruction or amalgamation of a banking company for protecting the interest of the public, depositors and the banking system and for securing its proper management, even without making an order of moratorium, so as to avoid disruption of the financial system.

Prior to the ordinance, the duty to regulate the cooperative banks was shared by the RBI and the respective state registrar’s of the cooperative societies. The role of the registrar was to have a statutory oversight over the incorporation, management, audit and liquidation of the such banks, while the role of the RBI was restricted to overlooking the mere maintenance of cash reserves and capital adequacy.&nbsp;

It is pertinent to note herein that this is the general regulatory role that RBI usually plays with respect to banks, irrespective of the nature of functioning. Therefore, following the irregularities uncovered in relation to such cooperative banks and with the intention to protect the hard earned money of approximately 8.6 crore depositors panning across 1,540 urban and multi-state cooperative banks, amounting to a total of up to Rs.4.84 lakh crores, the aforementioned ordinance was promulgated by the President of India. The Banking Regulation (Amendment) Bill, 2020 was previously introduced in the House of People on 03.03.2020 but could not be taken for consideration by the House of People due to the coronavirus pandemic.

Most cooperative banks, on account of the mismanagement prevalent therein, led to undercapitalisation and poor management and supervision thereby, leading to losses suffered by the innocent depositors.&nbsp;

In the past many years, the RBI has been seen to impose restrictions on lending and withdrawals on such banks, that are able to continue to operate with the explicit or implicit support from the government for years. However, subsequently they are wound up and their licence cancelled, thereby, increasing the sufferings of those innocent depositors, until the bank is finally liquidated.

With the promulgation of the ordinance by the President, the banks will now be audited according to the norms of the RBI instead of that of the state registrars. The central bank will also have the power to supersede the board of such banks by taking charge of certain banking actions for an interim period, but such can be done only when the bank in question is found to be in an exceptional circumstance; and with the consultation of the respective state government. The resultant effect of the ordinance is that the state registrars will continue to undertake the administrative functions, that they used to perform earlier, but simultaneously, the cooperative banks of the country have been made more answerable to the RBI.

The Principal Act provides that RBI may apply to the central government to place a banking company under a moratorium, during which, no legal action can be initiated or continued against the bank for a period of up to six months. Further, the bank cannot make any payment or discharge liabilities during this period. The ordinance, however, adds that during the period of moratorium, the bank cannot grant any loans or make investments in any credit instruments.

The Principal Act also stipulates that during the period of moratorium, RBI may prepare a scheme for reconstruction or amalgamation of the bank, if it is satisfied that such an order is needed to secure proper management of the bank, or in the interest of depositors, general public, or the banking system. However, the ordinance allows RBI to initiate such a scheme as mentioned above, without imposing a moratorium.

It is also pertinent to herein that the ordinance provides that a cooperative bank, with the prior approval of the RBI and such other conditions as mentioned therein, may issue equity shares, preference shares, or special shares on face value or at a premium to its members or to any other person residing within its area of operation, by way of public issue or private placements. Further, it may issue unsecured debentures or bonds or other like securities with maturity of not less than ten years to such persons.

In view of the aforesaid changes, the ordinance is, indeed, a positive move taken by the central government, with a view to help and end the misery of depositors by protecting their money deposited in such cooperative banks so that they do not have to face any inconveniences in the form of restrictions on daily withdrawals, as was seen in the Punjab and Maharashtra Cooperative Bank fiasco. Such a move would not only give the RBI more power to regulate cooperative banks but also safeguard the money of the depositors.

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

As an offshoot to the unravelling of Punjab and Maharashtra Cooperative Bank debacle in 2019, the President, in exercise of the powers conferred by Clause (1) of Article 123 of the Constitution of India, promulgated the Banking Regulation (Amendment) Ordinance, 2020 (hereinafter referred to as the “Ordinance”) on 26.

As an offshoot to the unravelling of Punjab and Maharashtra Cooperative Bank debacle in 2019, the President, in exercise of the powers conferred by Clause (1) of Article 123 of the Constitution of India, promulgated the Banking Regulation (Amendment) Ordinance, 2020 (hereinafter referred to as the “Ordinance”) on 26.06.2020. The ordinance has primarily been promulgated for bringing cooperative banks under the supervisory powers of the Reserve Bank of India (hereinafter referred to as “RBI”), in order to protect the interest of depositors across the country and strengthen cooperative banks by improving governance and oversight. The said intention of the central government was first intimated to the public by the finance minister, Nirmala Sitharaman during the presentation of the annual budget of the current financial year. The ordinance effectively amends the Banking Regulation Act, 1949 (hereinafter referred to as the “Principal Act”) by extending powers already available with the Reserve Bank of India, in respect of other banks, to co-operative Banks as well for better management, sound banking regulation, ensuring professionalism and enabling their access to capital. The ordinance does not take away the powers of the state registrars of co-operative societies under state co-operative laws. Furthermore, the ordinance does not affect Primary Agricultural Credit Societies or co-operative societies, having a primary object and principal business of long-term finance for agricultural development, and which do not use the words “bank”, “banker” or “banking” and do not act as drawees of cheques. The ordinance also amends Section 45 of the Principal Act, to enable making of a scheme of reconstruction or amalgamation of a banking company for protecting the interest of the public, depositors and the banking system and for securing its proper management, even without making an order of moratorium, so as to avoid disruption of the financial system. Prior to the ordinance, the duty to regulate the cooperative banks was shared by the RBI and the respective state registrar’s of the cooperative societies. The role of the registrar was to have a statutory oversight over the incorporation, management, audit and liquidation of the such banks, while the role of the RBI was restricted to overlooking the mere maintenance of cash reserves and capital adequacy. It is pertinent to note herein that this is the general regulatory role that RBI usually plays with respect to banks, irrespective of the nature of functioning. Therefore, following the irregularities uncovered in relation to such cooperative banks and with the intention to protect the hard earned money of approximately 8.6 crore depositors panning across 1,540 urban and multi-state cooperative banks, amounting to a total of up to Rs.4.84 lakh crores, the aforementioned ordinance was promulgated by the President of India. The Banking Regulation (Amendment) Bill, 2020 was previously introduced in the House of People on 03.03.2020 but could not be taken for consideration by the House of People due to the coronavirus pandemic. Most cooperative banks, on account of the mismanagement prevalent therein, led to undercapitalisation and poor management and supervision thereby, leading to losses suffered by the innocent depositors. In the past many years, the RBI has been seen to impose restrictions on lending and withdrawals on such banks, that are able to continue to operate with the explicit or implicit support from the government for years. However, subsequently they are wound up and their licence cancelled, thereby, increasing the sufferings of those innocent depositors, until the bank is finally liquidated. With the promulgation of the ordinance by the President, the banks will now be audited according to the norms of the RBI instead of that of the state registrars. The central bank will also have the power to supersede the board of such banks by taking charge of certain banking actions for an interim period, but such can be done only when the bank in question is found to be in an exceptional circumstance; and with the consultation of the respective state government. The resultant effect of the ordinance is that the state registrars will continue to undertake the administrative functions, that they used to perform earlier, but simultaneously, the cooperative banks of the country have been made more answerable to the RBI. The Principal Act provides that RBI may apply to the central government to place a banking company under a moratorium, during which, no legal action can be initiated or continued against the bank for a period of up to six months. Further, the bank cannot make any payment or discharge liabilities during this period. The ordinance, however, adds that during the period of moratorium, the bank cannot grant any loans or make investments in any credit instruments. The Principal Act also stipulates that during the period of moratorium, RBI may prepare a scheme for reconstruction or amalgamation of the bank, if it is satisfied that such an order is needed to secure proper management of the bank, or in the interest of depositors, general public, or the banking system. However, the ordinance allows RBI to initiate such a scheme as mentioned above, without imposing a moratorium. It is also pertinent to herein that the ordinance provides that a cooperative bank, with the prior approval of the RBI and such other conditions as mentioned therein, may issue equity shares, preference shares, or special shares on face value or at a premium to its members or to any other person residing within its area of operation, by way of public issue or private placements. Further, it may issue unsecured debentures or bonds or other like securities with maturity of not less than ten years to such persons. In view of the aforesaid changes, the ordinance is, indeed, a positive move taken by the central government, with a view to help and end the misery of depositors by protecting their money deposited in such cooperative banks so that they do not have to face any inconveniences in the form of restrictions on daily withdrawals, as was seen in the Punjab and Maharashtra Cooperative Bank fiasco. Such a move would not only give the RBI more power to regulate cooperative banks but also safeguard the money of the depositors. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL.)

Cooperative banks now subject to regulation by Reserve Bank of India

Merely after three months of Coronavirus outbreak, the pandemic has already started impacting economies all across the globe.

In order to contain the spread of COVID-19, Prime Minister Narendra Modi, on March 23, announced a 21-day nationwide lockdown. Pursuant thereto, Finance Minister Nirmala Sitharaman released a Rs 1.7 trillion package to curtail the impact of the said lockdown. In the context of the economy, the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, had repeatedly assured that RBI holds enough capability to handle the emergency and shall utilise the same at the right time. Therefore, the RBI, on March 27, rolled out a long list of announcements in order to safeguard the economy from the vicious impact of the pandemic, including relaxation on instalments, lower interest rates and easier access to working capital to help the market function better without much financial pressure.&nbsp;

The RBI, as a major relief to retail borrowers, decided to defer the instalments on all term loans to businesses and individuals, including principal and interest, by a period of three months. However, each bank will take its own call so as to decide who can benefit from this measure. All commercial banks have been allowed to impose a moratorium of three months on paying instalments on term loans from March 1, 2020. The tenures will be extended accordingly. All lenders have also been permitted to defer interest payments on working capital loans by three months. It has been made clear that the accumulated interest shall be paid after expiry of the said period of three months. The Governor of the RBI clarified that the moratorium on term loan repayments and deferred interest payments on working capital will classify the borrowers as defaulters as NPA accounts and hence, there will be no adverse impact on the credit history thereof.&nbsp;

Apart from the relaxation provided to the customers as detailed above, the RBI, as an exceptional measure, also reduced the repo rate by 75 basis points or 0.75 per cent, which would mean that other banks can now borrow money from RBI at a much lower interest rate. This will also provide a boost to the industrial sector as industries will be able to get loans at cheaper interest rates, which would, in turn, result in commodities becoming cheaper, ultimately benefitting the end consumer. However, it is reiterated that each bank will have to decide how and when will it implement the lowered interest rates on the loans it offers. 
 
The RBI further reduced the Cash Reserve Ratio of all banks by 100 basis points, taking it down to 3 per cent from the earlier 4 per cent with effect from March 28 for a period of one year. This reduction in the Cash Reserve Ratio would release Rs.1.37 lakh crores for banks in India. Furthermore, the RBI has decided that the banks can get durable liquidity up to Rs.1 lakh crore from the RBI for a three-year period. The RBI has also raised the borrowing limit of the Statutory Liquidity Ratio under the Marginal Standing Facility (“MSF”) to 3 per cent with immediate effect applicable up to March 30, intending to provide comfort to the banking system by allowing it to avail additional Rs.1.37 lakh crores of liquidity in times of stress at the MSF Rate so announced. More so, in these testing times, in order to discourage banks to park surplus funds, the RBI has reduced the reverse repo rate to 4 per cent.&nbsp;

However, it is made clear by the banks that the relaxation period of three months provided to the customers is not a waiver of the monthly instalments for three months, instead, it is a grace period for three months, to reduce to the burden and distress caused by the pandemic. Most banks have resolved to place the onus on the borrowers to inform the bank that they wish to take benefit of the three-month breathing period. However, once a borrower avails this facility, interest will continue to accrue on the principal outstanding for the entire period of the moratorium at rate agreed upon by the parties and the loan tenure will get extended by the corresponding period accordingly. Therefore, it is abundantly clear that it is only a deferment option and not a concession or waiver given by the banks to the customers, since the interest would continue to accrue for the entire period of the moratorium.&nbsp;

In a bid to mitigate the impact of the outbreak of the pandemic on businesses, industries and individuals, the RBI has tried to ensure that viable businesses and industries are not driven out of the market owing to financial distress. RBI has provided the much-needed rate cuts and tried to inject more liquidity in the economy to encourage each bank to lower its interest rates. Ideally, with such measures taken by the RBI, there must be a decline in the interest rates on loans offered by various banks, bringing down the overall cost of the loan of the customer. However, it remains to been seen how banks implement the aforementioned rate cuts on the loans they offer. None of these steps might prove to be effective if the banks are not ready to pass on this relaxation to the customers. However, with proper coordination and sensitivity of the banking industry, these steps are intended to reduce the burden on businesses, industries, individuals etc. and will give a huge boost to the economic activities with a view to safeguard our economy from the impact of the pandemic.&nbsp;&nbsp;

(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

Merely after three months of Coronavirus outbreak, the pandemic has already started impacting economies all across the globe. In order to contain the spread of COVID-19, Prime Minister Narendra Modi, on March 23, announced a 21-day nationwide lockdown.

Merely after three months of Coronavirus outbreak, the pandemic has already started impacting economies all across the globe. In order to contain the spread of COVID-19, Prime Minister Narendra Modi, on March 23, announced a 21-day nationwide lockdown. Pursuant thereto, Finance Minister Nirmala Sitharaman released a Rs 1.7 trillion package to curtail the impact of the said lockdown. In the context of the economy, the Governor of the Reserve Bank of India (RBI), Shaktikanta Das, had repeatedly assured that RBI holds enough capability to handle the emergency and shall utilise the same at the right time. Therefore, the RBI, on March 27, rolled out a long list of announcements in order to safeguard the economy from the vicious impact of the pandemic, including relaxation on instalments, lower interest rates and easier access to working capital to help the market function better without much financial pressure. The RBI, as a major relief to retail borrowers, decided to defer the instalments on all term loans to businesses and individuals, including principal and interest, by a period of three months. However, each bank will take its own call so as to decide who can benefit from this measure. All commercial banks have been allowed to impose a moratorium of three months on paying instalments on term loans from March 1, 2020. The tenures will be extended accordingly. All lenders have also been permitted to defer interest payments on working capital loans by three months. It has been made clear that the accumulated interest shall be paid after expiry of the said period of three months. The Governor of the RBI clarified that the moratorium on term loan repayments and deferred interest payments on working capital will classify the borrowers as defaulters as NPA accounts and hence, there will be no adverse impact on the credit history thereof. Apart from the relaxation provided to the customers as detailed above, the RBI, as an exceptional measure, also reduced the repo rate by 75 basis points or 0.75 per cent, which would mean that other banks can now borrow money from RBI at a much lower interest rate. This will also provide a boost to the industrial sector as industries will be able to get loans at cheaper interest rates, which would, in turn, result in commodities becoming cheaper, ultimately benefitting the end consumer. However, it is reiterated that each bank will have to decide how and when will it implement the lowered interest rates on the loans it offers. The RBI further reduced the Cash Reserve Ratio of all banks by 100 basis points, taking it down to 3 per cent from the earlier 4 per cent with effect from March 28 for a period of one year. This reduction in the Cash Reserve Ratio would release Rs.1.37 lakh crores for banks in India. Furthermore, the RBI has decided that the banks can get durable liquidity up to Rs.1 lakh crore from the RBI for a three-year period. The RBI has also raised the borrowing limit of the Statutory Liquidity Ratio under the Marginal Standing Facility (“MSF”) to 3 per cent with immediate effect applicable up to March 30, intending to provide comfort to the banking system by allowing it to avail additional Rs.1.37 lakh crores of liquidity in times of stress at the MSF Rate so announced. More so, in these testing times, in order to discourage banks to park surplus funds, the RBI has reduced the reverse repo rate to 4 per cent. However, it is made clear by the banks that the relaxation period of three months provided to the customers is not a waiver of the monthly instalments for three months, instead, it is a grace period for three months, to reduce to the burden and distress caused by the pandemic. Most banks have resolved to place the onus on the borrowers to inform the bank that they wish to take benefit of the three-month breathing period. However, once a borrower avails this facility, interest will continue to accrue on the principal outstanding for the entire period of the moratorium at rate agreed upon by the parties and the loan tenure will get extended by the corresponding period accordingly. Therefore, it is abundantly clear that it is only a deferment option and not a concession or waiver given by the banks to the customers, since the interest would continue to accrue for the entire period of the moratorium. In a bid to mitigate the impact of the outbreak of the pandemic on businesses, industries and individuals, the RBI has tried to ensure that viable businesses and industries are not driven out of the market owing to financial distress. RBI has provided the much-needed rate cuts and tried to inject more liquidity in the economy to encourage each bank to lower its interest rates. Ideally, with such measures taken by the RBI, there must be a decline in the interest rates on loans offered by various banks, bringing down the overall cost of the loan of the customer. However, it remains to been seen how banks implement the aforementioned rate cuts on the loans they offer. None of these steps might prove to be effective if the banks are not ready to pass on this relaxation to the customers. However, with proper coordination and sensitivity of the banking industry, these steps are intended to reduce the burden on businesses, industries, individuals etc. and will give a huge boost to the economic activities with a view to safeguard our economy from the impact of the pandemic. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

RBI's timely and decisive response to safeguard Indian economy from coronavirus impact

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments. The government has aimed to remedy these problems by bringing changes in the taxation structure and by providing for disinvestment in government-owned assets with the objective of infusing more money in the economy. This is definitely a bold step taken by the Ministry of Finance to spur the economy back on track.&nbsp;

An attempt has been made by the government to place more money in the hands of the general public and certain specific policies have been introduced by placing a few key sectors into prominence. The Agricultural, Rural Sectors along with the Infrastructure Sector, coupled with new policies of taxation and disinvestment have prominently been placed in the budget to accomplish the objectives of the government.

Agricultural and Rural Sectors

In the budget presented for the fiscal year 2020-2021, Agricultural and Rural sectors have been allotted a total of Rs.2.83 lakh crores, out of which, Rs.1.6 lakh crores are being dedicated to the betterment of irrigation facilities available to the farmers and Rs.1.23 lakh crores being allotted for rural development. Specific yojanas such as the PM-KUSUM have been revisited and subsequently strengthened by enlarging the applicability of the Yojna to twenty lakh farmers and by providing for additional benefits under the aforementioned Scheme. In addition to this, the budget has additionally come to the help of the farmers by providing for Krishi Rail Services and Krishi Udaan Services, through which the transportation of perishable goods has been aimed to be bolstered. The government has also focussed on the 'blue economy' of the country by aiming to involve the youth of the country in the fishery sector by providing for 3477 Sagar Mitras and 500 fish farmer organisations, aiming to increase the export of the aforementioned sector to Rs.1 lakh crore by 2024-2025.&nbsp;

Taxation

There are major changes to the taxation sector of the economy by the government by revamping the income tax slabs, applicable earlier. Under the new scheme, two additional sub-divisions in the taxation bracket have been introduced by bifurcating the tax bracket. The tax rates that were applicable at 20 per cent for income slab between Rs.5 lakhs to Rs.10 lakhs under the old scheme has been revisited by the government at 10 per cent for income slab between Rs.5 lakhs to Rs.7.5 lakhs. Similarly, for Income slab between Rs.7.5 lakhs to Rs.10 lakhs, a tax rate has been fixed at 15 per cent. Likewise, the tax rate applicable for the income slab of Rs.10 Lakhs to Rs. 15 Lakhs was at 30 per cent under the old scheme has been changed to 20 per cent for the income slab of Rs.10 lakhs to Rs.12.5 lakhs and 25 per cent for the income slab of Rs.12.5 lakhs to Rs.15 lakhs.&nbsp;

Additional provisions have been made wherein the tax assessees have the option of subscribing to the old tax rates in case they want to claim certain benefits, but in order to claim the benefit of the new tax brackets, assessees would have to conform to the new scheme. &nbsp;

The government has also brought a notable change by changing the applicability of Dividend Distribution Tax. The tax was earlier imposed on companies but is now liable to be paid by individuals. In another boost to the companies, the threshold for exemption on the taxes payable by startups on the profits has been increased to Rs.100 crores from Rs.25 crores. Furthermore, previously the exemption on tax on profits of start-ups was limited to three years out of seven assessment years. This has also been proposed to be revamped to seven years out of ten years.&nbsp;

Another welcome change that been brought about by the government through the present Union Budget is that the Deposit Insurance Cover has been increased for the first time since the year 1993 from Rs.1 lakh to Rs.5 lakhs.&nbsp; 
 
WATCH: Budget 2020 - what it means for foreign investors?

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Infrastructure Sector

The government has allocated a total of Rs.100 lakh crores to be invested into the sector of infrastructure over the next four years. This has been sought to be materialised by focussing on the development of 100 airports under the 'Udaan Scheme' and the development of 55 new smart cities.&nbsp;

&nbsp;Women and Child Development, Social Welfare

The Union Budget has made an attempt to bolster this section of the society by providing enhanced funds for the citizens falling under this category. The amount allocated to accomplish the objectives of the 'Poshan Abhiyan' stands at Rs.35,600 crores. A task force has been formed to deal with the issue of young women entering into motherhood and their desire to pursue higher education at that stage. The task force is to report back within six months' time with their recommendations. Additionally, Rs. 28,600 crores have been specifically allotted for programmes specific to women.&nbsp;

Moreover, under the head of Social Welfare Sector, the Central Government has allocated Rs.85,000 Crores and Rs.53,700 Crores for Scheduled Class and OBC's and Scheduled Tribes respectively, to honour their commitments towards this section of the society.&nbsp;

Defence Sector

The expenditure of the government on <a href="https://www.wionews.com/opinions-blogs/union-budget-2020-defence-sector-needs-more-money-for-modernisation-278261">defence and its ancillary services </a>has been hiked by 6 per cent from Rs.3.18 lakh crores to Rs.3.37 lakh crores at present. A material change in the form of increased defence pension has been brought about by the Current Union Budget by increasing the defence pension for the defence forces from Rs.1.17 lakh crores to Rs.1.33 lakh crores. Therefore, the total defence budget amounts to Rs.4.7 lakh crores.&nbsp;

In view of the major highlights of the Union Budget as explained above, the government has aimed at increasing the purchasing power of the general public by coming out with such policies and schemes which aim to increase consumer expenditure and subsequently, the volume of investments made in the economy. Overall, the budget presented has focused on some key areas of the economy and&nbsp;society. Efficient utilisation of the allocated resources will lead to the accomplishment of socio-economic objectives of the government.&nbsp; 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)&nbsp;

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments.

On February 1, 2020, the Union Finance Budget was introduced in the Lok Sabha by the Finance Minister of India, Nirmala Sitharaman. Before the introduction of the budget, the main issues concerning the economy were the decline in consumer spending and investments. The government has aimed to remedy these problems by bringing changes in the taxation structure and by providing for disinvestment in government-owned assets with the objective of infusing more money in the economy. This is definitely a bold step taken by the Ministry of Finance to spur the economy back on track. An attempt has been made by the government to place more money in the hands of the general public and certain specific policies have been introduced by placing a few key sectors into prominence. The Agricultural, Rural Sectors along with the Infrastructure Sector, coupled with new policies of taxation and disinvestment have prominently been placed in the budget to accomplish the objectives of the government. Agricultural and Rural Sectors In the budget presented for the fiscal year 2020-2021, Agricultural and Rural sectors have been allotted a total of Rs.2.83 lakh crores, out of which, Rs.1.6 lakh crores are being dedicated to the betterment of irrigation facilities available to the farmers and Rs.1.23 lakh crores being allotted for rural development. Specific yojanas such as the PM-KUSUM have been revisited and subsequently strengthened by enlarging the applicability of the Yojna to twenty lakh farmers and by providing for additional benefits under the aforementioned Scheme. In addition to this, the budget has additionally come to the help of the farmers by providing for Krishi Rail Services and Krishi Udaan Services, through which the transportation of perishable goods has been aimed to be bolstered. The government has also focussed on the 'blue economy' of the country by aiming to involve the youth of the country in the fishery sector by providing for 3477 Sagar Mitras and 500 fish farmer organisations, aiming to increase the export of the aforementioned sector to Rs.1 lakh crore by 2024-2025. Taxation There are major changes to the taxation sector of the economy by the government by revamping the income tax slabs, applicable earlier. Under the new scheme, two additional sub-divisions in the taxation bracket have been introduced by bifurcating the tax bracket. The tax rates that were applicable at 20 per cent for income slab between Rs.5 lakhs to Rs.10 lakhs under the old scheme has been revisited by the government at 10 per cent for income slab between Rs.5 lakhs to Rs.7.5 lakhs. Similarly, for Income slab between Rs.7.5 lakhs to Rs.10 lakhs, a tax rate has been fixed at 15 per cent. Likewise, the tax rate applicable for the income slab of Rs.10 Lakhs to Rs. 15 Lakhs was at 30 per cent under the old scheme has been changed to 20 per cent for the income slab of Rs.10 lakhs to Rs.12.5 lakhs and 25 per cent for the income slab of Rs.12.5 lakhs to Rs.15 lakhs. Additional provisions have been made wherein the tax assessees have the option of subscribing to the old tax rates in case they want to claim certain benefits, but in order to claim the benefit of the new tax brackets, assessees would have to conform to the new scheme. The government has also brought a notable change by changing the applicability of Dividend Distribution Tax. The tax was earlier imposed on companies but is now liable to be paid by individuals. In another boost to the companies, the threshold for exemption on the taxes payable by startups on the profits has been increased to Rs.100 crores from Rs.25 crores. Furthermore, previously the exemption on tax on profits of start-ups was limited to three years out of seven assessment years. This has also been proposed to be revamped to seven years out of ten years. Another welcome change that been brought about by the government through the present Union Budget is that the Deposit Insurance Cover has been increased for the first time since the year 1993 from Rs.1 lakh to Rs.5 lakhs. WATCH: Budget 2020 - what it means for foreign investors? × Infrastructure Sector The government has allocated a total of Rs.100 lakh crores to be invested into the sector of infrastructure over the next four years. This has been sought to be materialised by focussing on the development of 100 airports under the 'Udaan Scheme' and the development of 55 new smart cities. Women and Child Development, Social Welfare The Union Budget has made an attempt to bolster this section of the society by providing enhanced funds for the citizens falling under this category. The amount allocated to accomplish the objectives of the 'Poshan Abhiyan' stands at Rs.35,600 crores. A task force has been formed to deal with the issue of young women entering into motherhood and their desire to pursue higher education at that stage. The task force is to report back within six months' time with their recommendations. Additionally, Rs. 28,600 crores have been specifically allotted for programmes specific to women. Moreover, under the head of Social Welfare Sector, the Central Government has allocated Rs.85,000 Crores and Rs.53,700 Crores for Scheduled Class and OBC's and Scheduled Tribes respectively, to honour their commitments towards this section of the society. Defence Sector The expenditure of the government on defence and its ancillary services has been hiked by 6 per cent from Rs.3.18 lakh crores to Rs.3.37 lakh crores at present. A material change in the form of increased defence pension has been brought about by the Current Union Budget by increasing the defence pension for the defence forces from Rs.1.17 lakh crores to Rs.1.33 lakh crores. Therefore, the total defence budget amounts to Rs.4.7 lakh crores. In view of the major highlights of the Union Budget as explained above, the government has aimed at increasing the purchasing power of the general public by coming out with such policies and schemes which aim to increase consumer expenditure and subsequently, the volume of investments made in the economy. Overall, the budget presented has focused on some key areas of the economy and society. Efficient utilisation of the allocated resources will lead to the accomplishment of socio-economic objectives of the government. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Union Budget 2020: Government has taken bold steps to put economy back on track

World’s today fears arrival of the “Day Zero” when the water taps shall run dry and the people will have to start queueing to collect a daily quota of water.&nbsp;

We are at extreme risk of climate change and water scarcity, which are more familiar in developing countries including India. Experts and organisations had been exclaiming about India's approaching water emergency for quite a while, yet we failed to accumulate much consideration until the taps ran dry in the major cities. Recently, the extreme water shortage in major Indian cities, particularly Chennai, gathered the public eye. NITI Aayog, in its report1, warned that India was suffering from the worst water crisis in history and nearly 50 per cent of the Indian population are suffering from severe water stress. It further predicted that Delhi along with 21 Indian cities will run out of groundwater by 2020; nearly 40 per cent of the Indian population will have absolutely no access to drinking water by 2030, and 6 per cent of India’s GDP would be lost by 2050 due to water crisis. The National Green Tribunal (“NGT”) observed that depletion of groundwater not only creates a crisis for drinking water, in the absence of inadequate surface water is available in certain areas where there may be drought conditions but also affects the flow in rivers and can also increase salinity in soil. 2 &nbsp;

The country has witnessed a dramatic increase in water demand for all uses - agricultural, industrial and domestic. According to the Central Water Commission, the country requires at most 3,000 billion cubic meters of water annually and receives about 4,000 billion cubic meters of rain. However, too much water is wasted attributable to the inefficiency and misuse, forcing the entire country to grapple with drought-like conditions even after receiving enough rainfall on account of government inaction, industrial and human waste, corruption and outright abuse of the water resources throughout the country. Basing its observations on the directions passed by the Honourable Supreme Court in M.C. Mehta v. Union of India and Ors.3, the NGT in Shailesh Singh (Infra) observed that the extraction of groundwater has, in fact, been liberalised, adding to the crisis, unmindful of the ground situation and the likely impact it will have on the environment.&nbsp;

However, the Central Government, keeping water-harvesting as a priority, in May 2019 formed the Jal Shakti Ministry (created by merging of Ministry of Water Resources, River Development and Ganga Rejuvenation and the Ministry of Drinking Water and Sanitation) for immediate management of water resources and water supply in an integrated and holistic manner, in cooperation with all the states to ensure “Har Ghar Jal” to all rural households. Consequently, the Central Government has allocated Rs.3.35 lakh crores for the Jal Jeevan Mission, that aims at providing clean drinking water to every household by the end of 2024 along with recharging groundwater levels with better local infrastructure.&nbsp;

The Central government aims to offer 43-55 litres of water per person per day, depending upon the season and a dedicated fund namely “Rashtriya Jal Jeevan Kosh” to be set up for implementation of the mission. &nbsp;

The courts have reiterated time and again that the right to access to clean drinking water is fundamental to life and the State is duty-bound under Article 21 to provide clean drinking water to its citizens. The state is further duty-bound not only to provide adequate drinking water but also to protect water resources from pollution and encroachment. Any act of the state that allows pollution of water bodies is in direct violation of Article 21 of the Constitution and the provisions of the Environment (Protection) Act, 1986, the Water (Prevention and Control of Pollution) Act, 1974 and the rules framed thereinunder. The role of the government gathers even more importance since the subject of Water - water supplies, irrigation and canals, drainage and embankments, water storage and water-power - falls solely under the ambit of Entry 17 of the State List in the Seventh Schedule of the Constitution. &nbsp;

The inadequacy or denial of access to clean water has been happening despite repeated directions passed by Courts. Since ‘water’ is a subject of utmost importance, leaving it to the exclusive jurisdiction of the legislature of a state to make laws with respect to it, will be detrimental to the welfare of the public and the entire nation. Therefore, with deep conscience and public welfare in mind, the Centre must regain control and supervision of subjects of such nationwide significance. A similar instance was witnessed by the nation, by virtue of the Constitution (Forty-Second Amendment) Act, 1976, whereby Seventh Schedule was restructured in order to ensure that state List subjects like education, forest, protection of wild animals and birds, administration of justice, and weights and measurements were transferred to the Concurrent List. “A Constitution to be living must be growing. If the impediments to the growth of the Constitution are not removed, the Constitution will suffer a virtual atrophy.”4&nbsp;

There is a need for an urgent change, which requires immediate measures to be taken leading towards improved water use efficiency, reduction of leakages, restoration of water bodies, treatment and reuse of wastewater and water harvesting to name a few. This change of approach should include efforts not only by the governments but from all stakeholders across the globe with a focus on conservation, source sustainability, storage and reuse, wherever possible. Nonetheless, the Jal Jeevan Mission, inaugurated by the Central Government, will prove to be an example throughout the world with its emphasis on behavioural change.&nbsp; 
&nbsp;

<h6>1. Composite Water Management Index (CWMI) Report released by the NITI Aayog in 2018 
&nbsp;2. Shailesh Singh Vs. Hotel Holiday Regency, Moradabad &amp; Ors. (O.A. 176/2015 on 03.01.2019) 
3.&nbsp; (1997) 11 SCC 312 
4. Statement of Objects and Reasons; The Constitution (Forty-Second Amendment) Act, 1976</h6>

(Views expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

World’s today fears arrival of the “Day Zero” when the water taps shall run dry and the people will have to start queueing to collect a daily quota of water. We are at extreme risk of climate change and water scarcity, which are more familiar in developing countries including India.

World’s today fears arrival of the “Day Zero” when the water taps shall run dry and the people will have to start queueing to collect a daily quota of water. We are at extreme risk of climate change and water scarcity, which are more familiar in developing countries including India. Experts and organisations had been exclaiming about India's approaching water emergency for quite a while, yet we failed to accumulate much consideration until the taps ran dry in the major cities. Recently, the extreme water shortage in major Indian cities, particularly Chennai, gathered the public eye. NITI Aayog, in its report1, warned that India was suffering from the worst water crisis in history and nearly 50 per cent of the Indian population are suffering from severe water stress. It further predicted that Delhi along with 21 Indian cities will run out of groundwater by 2020; nearly 40 per cent of the Indian population will have absolutely no access to drinking water by 2030, and 6 per cent of India’s GDP would be lost by 2050 due to water crisis. The National Green Tribunal (“NGT”) observed that depletion of groundwater not only creates a crisis for drinking water, in the absence of inadequate surface water is available in certain areas where there may be drought conditions but also affects the flow in rivers and can also increase salinity in soil. 2 The country has witnessed a dramatic increase in water demand for all uses - agricultural, industrial and domestic. According to the Central Water Commission, the country requires at most 3,000 billion cubic meters of water annually and receives about 4,000 billion cubic meters of rain. However, too much water is wasted attributable to the inefficiency and misuse, forcing the entire country to grapple with drought-like conditions even after receiving enough rainfall on account of government inaction, industrial and human waste, corruption and outright abuse of the water resources throughout the country. Basing its observations on the directions passed by the Honourable Supreme Court in M.C. Mehta v. Union of India and Ors.3, the NGT in Shailesh Singh (Infra) observed that the extraction of groundwater has, in fact, been liberalised, adding to the crisis, unmindful of the ground situation and the likely impact it will have on the environment. However, the Central Government, keeping water-harvesting as a priority, in May 2019 formed the Jal Shakti Ministry (created by merging of Ministry of Water Resources, River Development and Ganga Rejuvenation and the Ministry of Drinking Water and Sanitation) for immediate management of water resources and water supply in an integrated and holistic manner, in cooperation with all the states to ensure “Har Ghar Jal” to all rural households. Consequently, the Central Government has allocated Rs.3.35 lakh crores for the Jal Jeevan Mission, that aims at providing clean drinking water to every household by the end of 2024 along with recharging groundwater levels with better local infrastructure. The Central government aims to offer 43-55 litres of water per person per day, depending upon the season and a dedicated fund namely “Rashtriya Jal Jeevan Kosh” to be set up for implementation of the mission. The courts have reiterated time and again that the right to access to clean drinking water is fundamental to life and the State is duty-bound under Article 21 to provide clean drinking water to its citizens. The state is further duty-bound not only to provide adequate drinking water but also to protect water resources from pollution and encroachment. Any act of the state that allows pollution of water bodies is in direct violation of Article 21 of the Constitution and the provisions of the Environment (Protection) Act, 1986, the Water (Prevention and Control of Pollution) Act, 1974 and the rules framed thereinunder. The role of the government gathers even more importance since the subject of Water - water supplies, irrigation and canals, drainage and embankments, water storage and water-power - falls solely under the ambit of Entry 17 of the State List in the Seventh Schedule of the Constitution. The inadequacy or denial of access to clean water has been happening despite repeated directions passed by Courts. Since ‘water’ is a subject of utmost importance, leaving it to the exclusive jurisdiction of the legislature of a state to make laws with respect to it, will be detrimental to the welfare of the public and the entire nation. Therefore, with deep conscience and public welfare in mind, the Centre must regain control and supervision of subjects of such nationwide significance. A similar instance was witnessed by the nation, by virtue of the Constitution (Forty-Second Amendment) Act, 1976, whereby Seventh Schedule was restructured in order to ensure that state List subjects like education, forest, protection of wild animals and birds, administration of justice, and weights and measurements were transferred to the Concurrent List. “A Constitution to be living must be growing. If the impediments to the growth of the Constitution are not removed, the Constitution will suffer a virtual atrophy.”4 There is a need for an urgent change, which requires immediate measures to be taken leading towards improved water use efficiency, reduction of leakages, restoration of water bodies, treatment and reuse of wastewater and water harvesting to name a few. This change of approach should include efforts not only by the governments but from all stakeholders across the globe with a focus on conservation, source sustainability, storage and reuse, wherever possible. Nonetheless, the Jal Jeevan Mission, inaugurated by the Central Government, will prove to be an example throughout the world with its emphasis on behavioural change. 1. Composite Water Management Index (CWMI) Report released by the NITI Aayog in 2018 2. Shailesh Singh Vs. Hotel Holiday Regency, Moradabad & Ors. (O.A. 176/2015 on 03.01.2019) 3. (1997) 11 SCC 312 4. Statement of Objects and Reasons; The Constitution (Forty-Second Amendment) Act, 1976 (Views expressed above are the personal views of the author and do not reflect the views of ZMCL)

Water scarcity: With 'Jal Jeevan Mission', government tends to focus on behavioural change

India, which is projected to be the world’s youngest country by the next year, encompasses the world’s largest youth population with 356 million people in the age group of 10-25 years [United Nations report (2014)]. This large section of the tertiary-age population provides our country with an exclusive demographic advantage. According to a report, there is an overall positive trend in talent supply as over 47.68 per cent of the graduates were found to be employable in 2019 against only 33 per cent in 2014 [India Skills Report (2019) released by the Confederation of Indian Industries].&nbsp;

However, despite these promising statistics and unique demographic dividend, a major segment of the Indian graduates still remain unemployable.

The youth in our country face multiple obstacles to find desirable and suitable job opportunities analogous to their educational qualifications. It is quite ironical that higher educational institutions/academia across the country are training millions of youth annually but the industry often complaints about the inadequacy of necessary skills among them desired for a suitable job. On the contrary, academia and industry also point fingers at the government for ineffective implementation of policies and sometimes even deficiency of government initiatives for a higher education system similar to global standards.

With the increase in the number of graduates and working population annually, employability and skilling have become two of the biggest challenges for the country’s growth. The Central Government in order to face the two challenges has proposed various youth-centric programmes and schemes. For instance, the National Rural Employment Guarantee Scheme, National Skill Development Mission, Udaan, Pradhan Mantri Kaushal Vikas Yojana, Entrepreneurship Development Programme and Skills Strengthening for Industrial Value Enhancement among several others. In addition, recently, in 2014, the State Government of Andhra Pradesh to make its state as ‘knowledge and skills hub’ and promote ‘skill development and entrepreneurship’ had started Andhra Pradesh State Skill Development Corporation (APSSDC).&nbsp;

The APSSDC under its regime and to impart skill development trainings and taking up job facilitation had developed various programs for schools and degree students (imparting training in English/Soft skills and IT computational thinking, certification courses in finance/accounting etc.), engineering students (IT/certification courses in engineering colleges, day-long workshops, etc.) and international programmes for such students (setting up training centers to provide industry-relevant, placement training in colleges, etc.)&nbsp;

These initiatives and schemes as proposed by the Central Government indicate its assurance of fulfilment of certain principles envisaged under the Directive Principles of the State Policy (Part IV of the Constitution of India). The Government including the State Governments have indeed played an active role in eliminating inequalities in facilities and opportunities amongst the people engaged in different vocations. However, in order to face the conundrum of employability amongst the young graduates, it is vital to contrive specific strategies that bridge the gap between employability preferences and labour market realities. Nonetheless, it would also be unrealistic to expect the Central Government to overcome this challenge without solidarity from the states. It is essential that the industry and academia work in a symbiotic relationship with the various government agencies and their departments to explore this demographic divided.

Another aspect that becomes imperative while the Indian economy undergoes swift and concurrent economic, demographic, social and technological shifts, is to ascertain how best the academic curriculum can address various necessities and demands of the dynamic industry and the economy. The Government in cooperation with academia may look at the existing curriculum and assess if the same can be made more practical and flexible in approach accommodating the shifts within the industry. For instance, to improve standards of higher education in India in tune with the transforming the needs of the industry and market, the All India Council for Technical Education (AICTE) has taken various initiatives including the revision of curriculum on regular basis. AICTE has instructed all the higher education institutes across India to revise their curriculum every three years.

Notwithstanding the role of the government in providing basic education and training, there is also a significant need for greater involvement of the private sector or the industry in increasing employability amongst the graduates. Since the private sector plays a pivotal role in contributing a significant portion in India’s GDP, it becomes vital for the private sector to contribute towards employability of the youth in the country. A combination of economic, business and technology factors have led to a steady rise in synergistic partnerships between the industry and academia in many countries like Canada, Singapore, UK, USA and few others for several years. Given the dynamic nature of business today, enterprises collaborate with the universities for providing continuous training to their employees across disciplines. This ensures that their employees have a contemporary understanding of the best practices in their field of work, while also promoting employee satisfaction. On the other hand, universities carry this understanding of the needs of the corporate sector and incorporate the same into their academic curriculum. For universities, this is a critical way in which they can create comprehensive coursework that is exceeding relevant in the job market today.

In India, the serious issue has been that the higher education sector and the industrial sector have worked in isolation from each other. On one hand, the industry needs talent and on the other, there is an abundance of graduates who do not have industry-oriented skills. In countries like the US, corporates reach out to universities/institutions to bring innovation into their work, while in India, corporates and industry bodies rely mostly on their own research rather than reaching out to academia. However, India has experienced a change in its approach recently. Various corporates and academia are taking a step forward to build a cordial relationship. For instance, HDFC Bank, as a part of its industry-academia partnership, has announced its plan to partner 50 technology companies and business schools to tap emerging fintech ideas starting with IIT-Bombay and IIT-Roorkee. The Ministry of Human Resource and Development (MHRD) has increased its funding to IIT-Madras by nearly Rs. 300 crore to encourage innovation and strengthen the industry-academia relationship. A few trade associations representing the Indian ESDM (Electronic System Design and Manufacturing) industry have also signed MoUs with institutions to build a robust talent pipeline in the ESDM space.

One of the approaches to tackle the problem of inadequacy in skills and job readiness among youth is by bridging the gap between Government, industry and academia. The second could be that academia, apart from imparting the technical knowledge, should impart training in enhancing softer/interpersonal skills, leadership capability, attitude, communication skills, etc. Moreover, it should inculcate such schemes from primary level in schools. Academia should also include workplace exposure through internships, live projects, corporate interactions in the curriculum and provide credits to the students for the same. Such programmes enable the students to keep pace to the needs of the industry. It would be heartening to see the Government as well as the private sector step forward and work exclusively with the academicians to create and develop a shared model for jobs and curriculum to address the industrial needs so that India can fully utilise the demographic dividend that it possesses.

(Views expressed above are the personal views of the author and do not reflect the views of ZMCL) 
&nbsp;

India, which is projected to be the world’s youngest country by the next year, encompasses the world’s largest youth population with 356 million people in the age group of 10-25 years [United Nations report (2014)].

India, which is projected to be the world’s youngest country by the next year, encompasses the world’s largest youth population with 356 million people in the age group of 10-25 years [United Nations report (2014)]. This large section of the tertiary-age population provides our country with an exclusive demographic advantage. According to a report, there is an overall positive trend in talent supply as over 47.68 per cent of the graduates were found to be employable in 2019 against only 33 per cent in 2014 [India Skills Report (2019) released by the Confederation of Indian Industries]. However, despite these promising statistics and unique demographic dividend, a major segment of the Indian graduates still remain unemployable. The youth in our country face multiple obstacles to find desirable and suitable job opportunities analogous to their educational qualifications. It is quite ironical that higher educational institutions/academia across the country are training millions of youth annually but the industry often complaints about the inadequacy of necessary skills among them desired for a suitable job. On the contrary, academia and industry also point fingers at the government for ineffective implementation of policies and sometimes even deficiency of government initiatives for a higher education system similar to global standards. With the increase in the number of graduates and working population annually, employability and skilling have become two of the biggest challenges for the country’s growth. The Central Government in order to face the two challenges has proposed various youth-centric programmes and schemes. For instance, the National Rural Employment Guarantee Scheme, National Skill Development Mission, Udaan, Pradhan Mantri Kaushal Vikas Yojana, Entrepreneurship Development Programme and Skills Strengthening for Industrial Value Enhancement among several others. In addition, recently, in 2014, the State Government of Andhra Pradesh to make its state as ‘knowledge and skills hub’ and promote ‘skill development and entrepreneurship’ had started Andhra Pradesh State Skill Development Corporation (APSSDC). The APSSDC under its regime and to impart skill development trainings and taking up job facilitation had developed various programs for schools and degree students (imparting training in English/Soft skills and IT computational thinking, certification courses in finance/accounting etc.), engineering students (IT/certification courses in engineering colleges, day-long workshops, etc.) and international programmes for such students (setting up training centers to provide industry-relevant, placement training in colleges, etc.) These initiatives and schemes as proposed by the Central Government indicate its assurance of fulfilment of certain principles envisaged under the Directive Principles of the State Policy (Part IV of the Constitution of India). The Government including the State Governments have indeed played an active role in eliminating inequalities in facilities and opportunities amongst the people engaged in different vocations. However, in order to face the conundrum of employability amongst the young graduates, it is vital to contrive specific strategies that bridge the gap between employability preferences and labour market realities. Nonetheless, it would also be unrealistic to expect the Central Government to overcome this challenge without solidarity from the states. It is essential that the industry and academia work in a symbiotic relationship with the various government agencies and their departments to explore this demographic divided. Another aspect that becomes imperative while the Indian economy undergoes swift and concurrent economic, demographic, social and technological shifts, is to ascertain how best the academic curriculum can address various necessities and demands of the dynamic industry and the economy. The Government in cooperation with academia may look at the existing curriculum and assess if the same can be made more practical and flexible in approach accommodating the shifts within the industry. For instance, to improve standards of higher education in India in tune with the transforming the needs of the industry and market, the All India Council for Technical Education (AICTE) has taken various initiatives including the revision of curriculum on regular basis. AICTE has instructed all the higher education institutes across India to revise their curriculum every three years. Notwithstanding the role of the government in providing basic education and training, there is also a significant need for greater involvement of the private sector or the industry in increasing employability amongst the graduates. Since the private sector plays a pivotal role in contributing a significant portion in India’s GDP, it becomes vital for the private sector to contribute towards employability of the youth in the country. A combination of economic, business and technology factors have led to a steady rise in synergistic partnerships between the industry and academia in many countries like Canada, Singapore, UK, USA and few others for several years. Given the dynamic nature of business today, enterprises collaborate with the universities for providing continuous training to their employees across disciplines. This ensures that their employees have a contemporary understanding of the best practices in their field of work, while also promoting employee satisfaction. On the other hand, universities carry this understanding of the needs of the corporate sector and incorporate the same into their academic curriculum. For universities, this is a critical way in which they can create comprehensive coursework that is exceeding relevant in the job market today. In India, the serious issue has been that the higher education sector and the industrial sector have worked in isolation from each other. On one hand, the industry needs talent and on the other, there is an abundance of graduates who do not have industry-oriented skills. In countries like the US, corporates reach out to universities/institutions to bring innovation into their work, while in India, corporates and industry bodies rely mostly on their own research rather than reaching out to academia. However, India has experienced a change in its approach recently. Various corporates and academia are taking a step forward to build a cordial relationship. For instance, HDFC Bank, as a part of its industry-academia partnership, has announced its plan to partner 50 technology companies and business schools to tap emerging fintech ideas starting with IIT-Bombay and IIT-Roorkee. The Ministry of Human Resource and Development (MHRD) has increased its funding to IIT-Madras by nearly Rs. 300 crore to encourage innovation and strengthen the industry-academia relationship. A few trade associations representing the Indian ESDM (Electronic System Design and Manufacturing) industry have also signed MoUs with institutions to build a robust talent pipeline in the ESDM space. One of the approaches to tackle the problem of inadequacy in skills and job readiness among youth is by bridging the gap between Government, industry and academia. The second could be that academia, apart from imparting the technical knowledge, should impart training in enhancing softer/interpersonal skills, leadership capability, attitude, communication skills, etc. Moreover, it should inculcate such schemes from primary level in schools. Academia should also include workplace exposure through internships, live projects, corporate interactions in the curriculum and provide credits to the students for the same. Such programmes enable the students to keep pace to the needs of the industry. It would be heartening to see the Government as well as the private sector step forward and work exclusively with the academicians to create and develop a shared model for jobs and curriculum to address the industrial needs so that India can fully utilise the demographic dividend that it possesses. (Views expressed above are the personal views of the author and do not reflect the views of ZMCL)

Bridging the skill gap in India

While Article 21 of the Constitution of India guarantees every person protection of life and personal liberty, it connotes a much wider meaning, which includes the right to human dignity, right to health, right to receive medical care etc. It encompasses within its fold some of the finer facets of human civilization which make life worth living. It is not res integra anymore that the right to health has been held to be a deemed fundamental right. Article 47 of our Constitution reinforces that it is for the state to secure the health of its citizens as its primary duty. Furthermore, Article 25 of the Universal Declaration of Human Rights, to which India is a signatory, ensures the right to standard of adequate living for health and well-being of an individual including adequate medical care and the right to security in the event of sickness, disability etc.&nbsp;

Due to the enormous challenges faced by India’s health sector, including high expenditures, low financial protection and no health insurance coverage or protection, prompting impoverishment and poverty by virtue of high medical and hospitalisation costs, the Central Government, with a view to ensure universal access to quality health care services without having to face financial hardship, conceptualised the “Ayushman Bharat Scheme”, in order to fulfil the vision of Health for All and Universal Health Coverage enshrined in the National Health Policy, 2017. The Scheme has a two-legged approach, namely (i) Health and Wellness Centres; and (ii) National Health Protection Scheme. The former seeks to construct around 1,50,000 Health and Wellness Centres across the country and ensure comprehensive primary health care services. Whereas, the latter seeks to provide a comprehensive health insurance scheme. The Central Government seeks to provide an insurance cover of Rs.5 Lakhs per family per year, with no cap on family size and age, including pre and post hospitalisation expense, by defining 1,350 medical packages covering surgery, medical and daycare treatments including medicines, diagnostics and transport. &nbsp;

The central government has allocated an amount of Rs 6,400 crores for the implementation of the scheme in the current financial year i.e. 2019-20, having benefitted over 20 lakh patients with access to much cheaper drugs till date and almost 70,000 hospitals having applied for empanelment under the said scheme. The state governments are expected to set up State Health Agencies to implement the Scheme in their respective States so that the Ayushman Bharat Scheme, being centrally sponsored, is availed by every deserving citizen of the country. It, being the bounden duty of the State Government since the subject of “Public health and sanitation; hospitals and dispensaries” falls solely under the ambit of the State List in the Seventh Schedule of the Constitution. Therefore, with the sole objective of public welfare in mind, altogether, a total of 32 States and Union Territories have signed a Memorandum with the Central Government to implement the Scheme and provide the benefits to their respective local citizens. However, it is quite cryptic as to why the government of NCT of Delhi has neither signed any Memorandum with the Central Government nor has adopted the said scheme for the benefit and welfare of its citizens. &nbsp;

The denial of benefits of the Scheme to millions of citizens of Delhi is not only violative of Article 21, but also blatantly violates the provisions of Article 14 of the Constitution, which aims to establish “Equality of Status and Opportunity” to every person.&nbsp;

Thus, the Government of NCT of Delhi is in direct abrogation of the rights and liberties of its local residents and inhabitants, juxtaposed with the citizens of other states of the country, enjoying the benefits of the Scheme. The citizens would be in a position to avail quality medical facilities all over the country under the said scheme from various hospitals that would come under the purview of the Scheme. Such denial by the Government of NCT of Delhi is further incongruous with the Doctrine of Good Governance, which categorically requires any Government to rise above their political interests and act only in public interest and for the welfare of its people.1 Public policy, is not the policy of a particular Government. 2. The political apathy of the Government of NCT of Delhi specifically lacks rationale and sensitivity towards the common citizens. It must be mentioned that political vendetta must never stand in the way of public welfare. Governments are expected to rise above the nexus of vested interests and nepotism and eschew window-dressing and that the principles of governance have to be tested on the touchstone of justice, equity, fair play. 3 In a democracy, it is legitimate for the citizens to expect that the Government of the day would treat the public interests as primary. &nbsp;

In view of the foregoing, it is trite to mention the maxim “Salus Populi Suprema Lex Esto”, which means that the health of the people must be the supreme law. It must not only be kept in books but be implemented in effect. All policies, schemes or provisions introduced in the interest of communal harmony and for the prevalence of good governance must be given effect to without any political controversy. &nbsp; 
 
(Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL) &nbsp; 
&nbsp;

While Article 21 of the Constitution of India guarantees every person protection of life and personal liberty, it connotes a much wider meaning, which includes the right to human dignity, right to health, right to receive medical care etc.

While Article 21 of the Constitution of India guarantees every person protection of life and personal liberty, it connotes a much wider meaning, which includes the right to human dignity, right to health, right to receive medical care etc. It encompasses within its fold some of the finer facets of human civilization which make life worth living. It is not res integra anymore that the right to health has been held to be a deemed fundamental right. Article 47 of our Constitution reinforces that it is for the state to secure the health of its citizens as its primary duty. Furthermore, Article 25 of the Universal Declaration of Human Rights, to which India is a signatory, ensures the right to standard of adequate living for health and well-being of an individual including adequate medical care and the right to security in the event of sickness, disability etc. Due to the enormous challenges faced by India’s health sector, including high expenditures, low financial protection and no health insurance coverage or protection, prompting impoverishment and poverty by virtue of high medical and hospitalisation costs, the Central Government, with a view to ensure universal access to quality health care services without having to face financial hardship, conceptualised the “Ayushman Bharat Scheme”, in order to fulfil the vision of Health for All and Universal Health Coverage enshrined in the National Health Policy, 2017. The Scheme has a two-legged approach, namely (i) Health and Wellness Centres; and (ii) National Health Protection Scheme. The former seeks to construct around 1,50,000 Health and Wellness Centres across the country and ensure comprehensive primary health care services. Whereas, the latter seeks to provide a comprehensive health insurance scheme. The Central Government seeks to provide an insurance cover of Rs.5 Lakhs per family per year, with no cap on family size and age, including pre and post hospitalisation expense, by defining 1,350 medical packages covering surgery, medical and daycare treatments including medicines, diagnostics and transport. The central government has allocated an amount of Rs 6,400 crores for the implementation of the scheme in the current financial year i.e. 2019-20, having benefitted over 20 lakh patients with access to much cheaper drugs till date and almost 70,000 hospitals having applied for empanelment under the said scheme. The state governments are expected to set up State Health Agencies to implement the Scheme in their respective States so that the Ayushman Bharat Scheme, being centrally sponsored, is availed by every deserving citizen of the country. It, being the bounden duty of the State Government since the subject of “Public health and sanitation; hospitals and dispensaries” falls solely under the ambit of the State List in the Seventh Schedule of the Constitution. Therefore, with the sole objective of public welfare in mind, altogether, a total of 32 States and Union Territories have signed a Memorandum with the Central Government to implement the Scheme and provide the benefits to their respective local citizens. However, it is quite cryptic as to why the government of NCT of Delhi has neither signed any Memorandum with the Central Government nor has adopted the said scheme for the benefit and welfare of its citizens. The denial of benefits of the Scheme to millions of citizens of Delhi is not only violative of Article 21, but also blatantly violates the provisions of Article 14 of the Constitution, which aims to establish “Equality of Status and Opportunity” to every person. Thus, the Government of NCT of Delhi is in direct abrogation of the rights and liberties of its local residents and inhabitants, juxtaposed with the citizens of other states of the country, enjoying the benefits of the Scheme. The citizens would be in a position to avail quality medical facilities all over the country under the said scheme from various hospitals that would come under the purview of the Scheme. Such denial by the Government of NCT of Delhi is further incongruous with the Doctrine of Good Governance, which categorically requires any Government to rise above their political interests and act only in public interest and for the welfare of its people.1 Public policy, is not the policy of a particular Government. 2. The political apathy of the Government of NCT of Delhi specifically lacks rationale and sensitivity towards the common citizens. It must be mentioned that political vendetta must never stand in the way of public welfare. Governments are expected to rise above the nexus of vested interests and nepotism and eschew window-dressing and that the principles of governance have to be tested on the touchstone of justice, equity, fair play. 3 In a democracy, it is legitimate for the citizens to expect that the Government of the day would treat the public interests as primary. In view of the foregoing, it is trite to mention the maxim “Salus Populi Suprema Lex Esto”, which means that the health of the people must be the supreme law. It must not only be kept in books but be implemented in effect. All policies, schemes or provisions introduced in the interest of communal harmony and for the prevalence of good governance must be given effect to without any political controversy. (Disclaimer: The opinions expressed above are the personal views of the author and do not reflect the views of ZMCL)

Ayushman Bharat: Why rob Delhi of a world-class health scheme?

Author

Zee News Rajasthan

Editor

Gaurang Kanth

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