25th May : Daily Current Affairs

Descriptive/GD/PI Question: 25th May 2019

Que: There have been numerous fire accidents this year causing significant loss of life and property. While the government and other regulatory bodies have prescribed norms and fire safety measures, implementation and vigilance continue to be grave concern. Discuss the issue.


At least 20 students were killed, either due to suffocation or falling off the windows in an attempt to escape fire in a coaching centre blaze, in Surat. Such a disturbing incident necessitates us to take a look at the fire safety aspects of the country and the lacunae therein.


The answer must  discuss the issues involved and causes for such recurrent fatal fire incidents and the need for overhaul of measures and norms in place to overcome such disasters.


Structure of the answer:

The answer to the question must have the following parts:

Quote the recent incidences that were witnessed.

Discuss how such fatal fire incidents necessitates a relook at the current rule, regulations and norms that are almost defunct in practice and corrective measures for the same.

What needs to be done to overcome the alarming issue?

Discuss the institutional mechanisms, health and disaster management aspect of both life and property.

Conclusion:
Conclude with what should be the way ahead.

Descriptive/GD/PI Question- 26th May 2019:

Question: What are NBFCs? How are they different from banks? Discuss their financial activities and the issues currently being faced by the Indian NBFCs.


The article highlights the ripple effect of the NBFCs crisis on the Indian economy. Non-banking financial companies (NBFCs) are facing a crisis, particularly the smaller ones that are struggling with asset-liability mismatch amid corporate governance issues. Thus, it is important for us to ponder on the topic from exam point of view.

Key demand of the question:
The answer must provide for a detailed discussion on what are NBFCs, their role and activities in the economy, what are the issues currently they are facing and what needs to be done to resolve it.

Structure of the answer

Introduction:
Write a few introductory lines defining what are NBFCs – is a Company that offers financial assistance and other banking services without actually being a bank. It is a Company registered under the Companies Act, 1956.

Body:
Answers must discuss the following aspects:

What are the characteristics of NBFC? How are they different from Banks?

Business they undertake?  – Loans and advances, Acquisition of shares/stocks/bonds/debentures/securities, Leasing, Hire-purchase, Insurance business, and Chit business.

Further, Companies whose primary business constitutes receiving deposits either in instalments or lump sum in any manner are also deemed as NBFCs. However, NBFCs exclude institutions engaged in the following kinds of business: Agriculture activity, Industrial activity, Purchase or sale of any goods (other than securities) or Providing any services and sale/purchase/construction of immovable property.

Discuss How are NBFCs different from banks?

Then move on to discussing the problems of the NBFCs – asset-liability mismatch amid corporate governance issues, NBFCs had borrowed short term from banks and mutual funds while lending to developers of long-term projects, which got held up because of various factors, willful corporate defaulters etc.

Suggest solutions

Conclusion:
Conclude with way forward.

Descriptive/GD/PI Topic: 27th May 2019

Cyber-frauds have grown in terms of sophistication and reach in the recent times  with increasing influence of social media.Discuss.

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The article brings us highlights of a  report- Current State of Cybercrime – 2019″ white paper, released by RSA Security, that states cyber criminals are increasingly relying on social media platforms to sell stolen identities, credit card numbers and other ill-gotten gains. Fraud from mobile apps rose 680% between 2015 and 2018.


Analyse in  detail the issues around cyber security, the root causes of Cyber fraud and what needs to be done to handle the menace.

Structure of the answer:

Introduction:
In a few introductory lines discuss the highlights of the report.

Body:
First explain what you understand by cyber frauds  – cyber fraud is any crime that is committed with the use of a computer or to computer data. This can look like many things, such as: Identity theft. Stolen bank account numbers.

Due to the incredibly rapid advances in technology and electronic communications, a steadily increasing proportion of total fraud is being perpetrated with the use of computers, the Internet, and sophisticated software and programming techniques.

Discuss the impact, reach and expanse – not only are individuals victimized by cyber fraud, but companies suffer from the costly effects of cyber fraud within their networks.

Explain while some of the detection and prevention methods for managing these cyber risks will be technological, a human element in the fight against cyber fraud will always be central to the war on such crimes.

Explain with the aid of recent examples.

Conclusion:
Conclude with what needs to be done, suggest way forward.

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MCQ - 27 May 2019