Demonetization/ less-cash

How
o E-payments, e-wallets, mobile banking
o Discounts and incentives, Awareness
Challenges
o Banking infrastructure still weak: TEMPORARY BUILDINGS in towns for tens
of years (rural branches operate in towns, small towns have 15-20 banks,
villages have none)
Conclusion: Digital transactions are a parallel mechanism, not a substitute, and a
cashless economy is actually a less-cash economy, as no economy can be fully cashless.

Public spending in India needs a major overhaul in terms of targeting and

monitoring.
Major overhaul: Long term Vision, in terms of targeting and monitoring
Issues: reckless and waste, leakages, misappropriation, problem of debt explosion, out-dated
budgetary practices
Kautilya, in Arthashastra, had observed that A King with depleted Treasury eats into the
very vitality of the citizens and the country.

Suitable monitoring and targeting measures: fiscal deficit targeting through FRBM, more
dynamic way of identifying beneficiaries for welfare schemes, better targeting and monitoring
through centralized public grievance redressal and monitoring system, ICT and e-Governance
programmes, JAM, DBT schemes.

Examples
o CAG: Only 25% of the workdays under MGNREGA have gone to genuine
beneficiaries
o CAG: Scams in schemes such as NRHM
o Fertilizer: 90% in PN, HR and Coastal AP, 60% land gets none
o Black marketing in PDS
Measures:
o DBT
o Appeal to give up subsidy: LPG
o Initiatives: Neem coated urea and Nutrient based subsidy (fertilizer)
o JAM

Internet:
Influences public opinion: Radicalization of youth
Distortion of facts: claimed to be the cause behind Brexit and US poll results
Psychological warfare
Sexual abuse
Vilification: political/religious hate campaigns
Communal violence: E.g.: Love-jihad and Muzaffarnagar riots
Ground for Cyber Crime
Cyber bullying:
Malign image/reputation
Undermining law and rights of people

Secure cyber ecosystem: inbuilt security capabilities, defend and prevent cyber-attacks
o Confidentiality and Integrity of data
 o Privacy of sensitive data
Threats to cyber ecosystem of India:
o Hacking
o Cyber stalking: use of email, mms
o Denial of service: blocking service/ bandwidth
o Diffusion of malware such as virus, Trojans, spyware, hoax
o Data security network sabotage and permanent damage to the system
o Data diddling and data theft
o Cyber warfare: cyber espionage, website defamation, theft of defense secrets
Why one should be concerned for cyber security:
o Digital age & IoT: Failure in one device can affect others
o Era of internet governance (NeGP) and ITeS (eLearning, e-wallets)
o Dependence of critical infrastructure on ICT
o Increasing incidence of cyber-attacks
o Threat to international peace from electronic terrorism and cyber war.
Conclusion:
Write a brief conclusion.
Best answer: Monica Mohan
Cyber ecosystem is the cyberspace universe where different entities interact and work in
collaboration with each other in real-time,dynamic manner. The participants such as
individuals, public and private enterprises work through devices and portals interact in a
information-loaded environment which is prone to be looted by hostile groups as cyber
attacks. In such an environment, it is important to create an assured cyber ecosystem.
FEATURES OF SECURE CYBER ECOSYSTEM:
1. Threat Information-sharing:To detect and defend cyberattacks, it is essential to
incorporate a real-time threat sharing system. Eg: When an organization confronts a
cyberattack, it must open its infrastructure for research and sharing.
2. Machine Learning: AI techniques used to detect and share cyberthreats. Eg: When a
new pattern of workflow is followed, devices should alert user for authentication.
3. Interoperability: To strengthen collaboration and speed up learning of threats. Eg:
Network devices learning about a threat when one gets affected.
4. Expert systems: To identify risks and enable authentication for critical information. Eg:
Identifying phishing in Online transactions.
THREATS TO INDIA:
1. Banking systems:With Digital India and drive for less-cash society, banking infrastructure
becoming vulnerable is to be strengthened. Eg: Credit card security breach.
2. Defence: Defence plans and programs of defence infrastructure are vulnerable to data
breach. Eg: Scorpene submarine data breach.
3. Individual data: e-mails and increasing volumes of cloud data gives motivation to
hackers. Eg: Yahoo! e-mail security compromise
4. Government data: With digitisation and cyber interaction of diplomatic entities,
confidential data is under threat. Eg: Kaspersky labs report on cyberespionage group.
5. Public data: Schemes like JAM, Aadhar and fingerprint enable transactions which have
vital data are prone to privacy threat.
CONCERN FOR CYBER SECURITY:
With increasing ICT penetration and drastic volume of vital information on cyberspace,
Hackers who steal private and public data, Cyber terrorists who attack cyber infrastructure
and encrytion for information sharing are increasing. Indias efforts to control cyber attacks
through institutions like CERT-In, Indio-US Cyber security forum, policies like National Cyber
Security Policy 2013 will protect cyber infrastructure and safeguard critical information.

3. What is money laundering? What are the various ways to launder money?
Why is it a threat to internal security?
The question has three parts Definition, different ways and how it is a threat to internal
security.
Point to be noted is that, in the question different ways of laundering money
have been asked, and not the different steps to launder money.
Money Laundering is the tern given to the process of conversion of Black money (money
obtained illegally) into ostensibly legitimate assets. Money laundering generally involves three
steps: the first involves introducing cash into the financial system by some means
(placement); the second involves carrying out complex financial transactions to camouflage
the illegal source of the cash (layering); and finally, acquiring wealth generated from the
transactions of the illicit funds (integration).
Various ways to Launder Money:
This has been given very comprehensively in wiki, so taking directly from there.
1. Structuring: Often known as smurfing, this is a method of placement whereby cash is
broken into smaller deposits of money, used to defeat suspicion of money laundering and
to avoid anti-money laundering reporting requirements. A sub-component of this is to use
smaller amounts of cash to purchase bearer instruments, such as money orders, and then
ultimately deposit those, again in small amounts.
2. Bulk cash smuggling: This involves physically smuggling cash to another jurisdiction
and depositing it in a financial institution, such as an offshore bank, with greater bank
secrecy or less rigorous money laundering enforcement.
3. Cash-intensive businesses: In this method, a business typically expected to receive a
large proportion of its revenue as cash uses its accounts to deposit criminally derived cash.
Such enterprises often operate openly and in doing so generate cash revenue from
incidental legitimate business in addition to the illicit cash in such cases the business
will usually claim all cash received as legitimate earnings. Service businesses are best
suited to this method, as such businesses have little or no variable costs and/or a large
ratio between revenue and variable costs, which makes it difficult to detect discrepancies
between revenues and costs. Examples are parking buildings, strip clubs, tanning beds,
car washes, and casinos.
4. Trade-based laundering: This involves under or overvaluing invoices to disguise the
movement of money.
5. Shell companies and trusts: Trusts and shell companies disguise the true owner of
money. Trusts and corporate vehicles, depending on the jurisdiction, need not disclose
their true, beneficial, owner. Sometimes referred to by the slang term rathole though that
term usually refers to a person acting as the fictitious owner rather a business entity. [
6. Round-tripping: Here, money is deposited in a controlled foreign corporation offshore,
preferably in a tax haven where minimal records are kept, and then shipped back as a
foreign direct investment, exempt from taxation. A variant on this is to transfer money to
a law firm or similar organization as funds on account of fees, then to cancel the retainer
and, when the money is remitted, represent the sums received from the lawyers as a legacy
under a will or proceeds of litigation.
7. Bank capture: In this case, money launderers or criminals buy a controlling interest in
a bank, preferably in a jurisdiction with weak money laundering controls, and then move
money through the bank without scrutiny.
8. Casinos: In this method, an individual walks into a casino and buys chips with illicit cash.
The individual will then play for a relatively short time. When the person cashes in the
chips, they will expect to take payment in a check, or at least get a receipt so they can claim
the proceeds as gambling winnings.
9. Other gambling: Money is spent on gambling, preferably on higher odds. One way to
minimize risk with this method is to bet on every possible outcome of some event where
there are many possible outcomes and no outcome(s) have short odds the bettor will lose
only the vigorish and will have (a) winning bet(s) that can be shown as the source of
money should this be requested. The losing bets will remain hidden.
10. Real estate: Someone purchases real estate with illegal proceeds and then sells the
property. To outsiders, the proceeds from the sale look like legitimate income.
Alternatively, the price of the property is manipulated: the seller agrees to a contract that
 underrepresents the value of the property, and receives criminal proceeds to make up the
difference.
11. Black salaries: A company may have unregistered employees without a written contract
and pay them cash salaries. Dirty money might be used to pay them.
12. Tax amnesties: For example, those that legalize unreported assets in tax havens and
cash.
https://piie.com/publications/chapters_preview/381/3iie3705.pdf
You can go through this link to understand money laundering.
(Note: Even you mention 5-6 of these, that will be sufficient for the answer.)
Threat to internal Security:
This money creates a parallel economy of unaccounted money, which is generally used for
illegal activities.
This money fuels the terrorist activities like buying arms and ammunition, communication
devices etc.
The money is paid to militias (terrorists and naxals) as salaries for fighting against the
state.
This money is also used in activities like drugs trading, human trafficking and smuggling.
This creates an economic divide in the society, which attracts poor people towards illegal
activities as they think this way they can earn more.
Money is paid to several NGOs and other organizations to carry anti national propagandas
or instigate people. This is used for political gains as well.
Conclude the answer with some suggestions and some important Acts of GoI.
Best Answer: MOL0929
https://uploads.disquscdn.com/images/4bf16988a4823b748470ef5e0c04959f7a5c1c0a5fee
c7ab44c5806ad0742b68.jpg
https://uploads.disquscdn.com/images/bf60c2f17e2bef81031f342e2bf8c551d17a4ce31d774
0fc8eb280dfee3db806.jpg

4. The shameful incident that occurred on new years eve in Bengaluru exposes
the fault lines in our society. Deterrence by effective implementation of laws is
the pressing need. Comment.
Again, many have repeated the same mistake of diverting from the demands of the question.
Many answers have been driven by emotion or getting carried away and drifted from actual
demand.
Please read the question carefully. It provides a statement Deterrence by effective
implementation of laws is need of hour to avoid such shameful incidents. COMMENT
Approach:
Pick out the main points on the subject:
1. Frequent shameful incidents are occuring exposes fault lines in our society
2. Deterrence + Effective implementation of laws need of the hour
These are the subject. Your job is to give your opinion, reinforcing your point of view using
logic and reference to relevant evidence, including any wider reading you have done.
You can comment negatively or positively and conclude accordingly. However, to play safe,
comment according to the mood of the question.
Introduction:
Provide that the cases of kidnapping and human trafficking are rising year by year and
incidents of rape and crime against women on the streets and roads are becoming more brazen
by the day with shameful incident that occurred on new years eve in Bengaluru being the
recent example.
Despite the abundance of laws (provide names of some laws), the social ills persist, all these
incidents exposes the fault lines in our society, serious doubt casts on the impact or efficacy of
such laws on society at large.
Body:
Now provide what are those fault lines
How perpetrators of crime escaping the law or punishment.
 Collective failure of the government and implementation of law in full letter and spirit.
Poor police and judiciary process The police and the judiciary are usually slow to
investigate and dispense justice, the deterrence is gradual despite the presence of stringent
provisions in the law for dealing with such cases.
Criminals only appear to have become emboldened by the collective failure of the
governments, police and judiciary in enforcing the rule of law and ensuring that those who do
not respect women or the law are not allowed to roam free.
Now provide your opinion i.e. to avoid the above fault lines, Deterrence + Effective
implementation of laws is need of the hour
Support your views with some evidences and reports. Provide example of Justice J.S. Verma
recommendations for harsher punishment, gradation of offences, ease of registration of
complaints, creation of a support system for the victims and police reforms to enable them to
deal more appropriately with cases of sexual offence; strict adherence to Vishaka Guidelines
and among others only then the impact of the changes on the ground will be felt.
You can also provide comparative analysis of foreign countries where deterrence by effective
implementation of laws have helped to prevent such instances.
Government can make any amount of stringent law, but the situation will not change till the
police remains what it is and the judiciary remains what it is. Therefore, solution lies in
speedy justice and ensuring that the culprits are punished. Deterrence by effective
implementation of laws is the pressing need.

Best answer: (No best answers)

5. General elections and assembly elections should be held at the same time in
order to avoid the current situation wherein the focus of the ruling parties
remains more on polls than governance. Critically comment.
Approach:
Since question asks Critically comment Provide evidence taken from a wide range of
sources which both agree with and contradict an argument.
Come to a final conclusion, basing your decision on what you judge to be the most important
factors and justify how you have made your choice.
Introduction:
India until 1967 had the practice of conducting simultaneous elections i.e. general and
assembly elections. Once again the topic has come to forefront after Prime minister and
President mooted the idea to avoid the current situation wherein the focus of the ruling parties
remains more on polls than governance.
Pros of simultaneous elections:
Simultaneous polls would reduce
the massive expenditure that is currently incurred for the conduct of separate elections;
the policy paralysis that results from the imposition of the Model Code of Conduct during
election time; and
impact on delivery of essential services and
burden on crucial manpower that is deployed during election time.
Cons of simultaneous elections:
Simultaneous elections will hamper the federal nature of Indian democracy. States might
lose their independence and thus impact their growth
Simultaneous elections can create confusion among the voters as majority of Indians are
illiterate, people tend to vote for political parties rather than individuals and many a times
they will vote for the same party both in the centre and is the state.
implementation constraints and administrative constraints constitutional amendments,
capacity of EC to provide logistical support, deployment of huge number of security
personnel also not feasible etc
Problems like hung election results, untimely dissolution question feasibility of such
actions.
Provide suitable conclusion.
Best answer: Shobhit Jaiswal
Government has come up with the concept of organising General elections and assembly
elections simultaneously to avoid the moral code of conduct paralyse the functioning of the
government. This issue is highly debatable as it leads to an effective governance but its
implementation is an up-hill task.
Benefits that will arise:
#Central government will be able to focus its attention on governance and effective
administration rather than shifting its focus to polls. With the initiation of the moral code of
government the government is unable to announce or implement any new policy, transfer or
any other development work.
#Staggered elections are financially draining and costs a huge fortune to the government.
Many saved from staggered elections can be utilised in strengthening public investment.
However on the other side there are many impediments to this concept as well.
#Simultaneous elections will hamper the federal nature of the country as people tend to vote
for political parties rather than individuals and many a times they will vote for the same party
both in the centre and is the state.
#Implementation of this concept is a nightmare as state government terms have to be modified
to align with the central government term.
#Political parties are held accountable through frequent elections which losses its prupose
through simultaneous elections.
Simultaneous elections are not utopian but they require delebration and confidence building
measures among all the stakeholders before being implemented in India.
Before concluding into a need for change in elections, govt can follow various other ways to
ensure governance is not affected like amending MCC etc. the immediate needs which
warrants attention are pressing issues like opacity in political funding, exploitation of social
groups as votebanks etc which can threaten the democratic fabric of India.