BYJU’S CLASSES

1. Banking and Frauds

Context of the issue

The bank frauds involving Punjab National Bank (PNB) and the

companies associated with businessmen Nirav Modi and Mehul Choksi

as well as the Rotomac case have come at a worse time. We need stricter adherence to sound banking rules and more

transparency from public and private players

The Indian banking system is already reeling under the pressure of growing NPAs, or non-performing assets, which will touch nearly Rs. 10

lakh crore by March this year.

This does not include the Rs. 6 lakh crore already written-off. This has

already caused a slowdown in disbursal of bank credit, in turn affecting productive investment.

Failure at many levels

This failure has occurred at many levels.

At the level of the bank, it is impossible to believe that only a handful of employees have been implicated.

Senior management and auditors did not track these problematic

transactions for years. The Reserve Bank of India (RBI) did not monitor banks properly and

created opacity with new financial instruments.

The Finance Ministry failed in its oversight and regulation. And successive Central governments, including the present one, did and

have not done anything to address the obvious problems that were

festering, and made them even worse. What has been revealed so far could be only the tip of the iceberg. The

ease with which fraudulent practices have been carried out and the

length of time over which they continued suggest that the rot is much

deeper. Other banks could have provided large loans without due diligence,

which other companies then received without intent to repay; this means

that many more loans gone bad could soon surface. It is now clear that the scams are fundamentally and overwhelmingly a

failure of regulation.

Using LoUs

The PNB scam relied on the existence of an unusual financial instrument, the letter of undertaking (LoU).

This is a bank guarantee that enables a bank’s customer to raise short-

term credit from another Indian bank’s foreign branch. It has to be another Indian bank, because the LoU as a form of

underwriting other borrowing does not exist in other countries and is not

even recognised by foreign banks. It was created by the RBI as an additional incentive to importers who

could then avail of cheaper credit abroad, even though import credits

already exist.

These LoUs — which are equivalent to providing credit and should be recorded as contingent liabilities — were not so recorded.

BYJU’S CLASSES

When loans are not repaid — in this case vast amounts borrowed from other banks based on these LoUs were apparently siphoned off to shell

companies controlled by the Modi-Choksi combine — the buck stops with

the issuing bank. What was intended to be trade credit was misused, with no record and

monitoring of the spending from those loans.

There is talk of sums in excess of Rs. 20,000 crore being involved in this

case as these businessmen were alleged to be so influential that they were even able to game the SWIFT system for foreign exchange

transactions.

This case involves pure criminal fraud, but there is a thin line between fraud and the many large defaults that plague the system.

Commercial bank lending is massively skewed: according to the RBI, in

March 2016, 11,643 borrowers accounted for 38% of all bank loans; large corporate borrowers had the overwhelming share (84%) of bad

loans. Just 12 large outstanding NPA accounted for as much as Rs.

250,000 crore.

The case of Wilful Defaulters

Finance is one of the many ways in which concessions and advantages

are distributed. Some favoured companies are not declared wilful

defaulters even when the government’s own investigating agencies find that they are diverting funds.

Those declared as wilful defaulters are neither punished nor prevented

from leaving the country.

In fact their names are not even made public, so they can continue to access loans from other banks.

Some insolvent companies are made to sell their assets which are then

purchased at throwaway prices by relatives or associates of the defaulting owners.

Despite claims to the contrary, shell companies held by influential people

continue to enable the siphoning of assets and money laundering in various forms.

Issues with Privatisation

Many analysts within and outside government have responded to these

scams by pointing the finger at public sector banks, claiming that they are more vulnerable to influence peddling and crony capitalism.

The current mess has also become an excuse to demand the privatisation

of state-held banks. This completely misses the point since privatisation would actually make things much worse for Indian banking.

The key issue is one of poor regulation, and not ownership. Indeed, the

reason why the current scam has not led to a widespread run on the PNB

and other banks is precisely because of the sovereign guarantee that, despite everything, still generates trust in the public banking system.

Poorly regulated private banks are even more prone to scams and failure

as the financial sector is rife with information asymmetries and market imperfections.

Private profit orientation generates incentives for managements to exploit

loopholes in the rules and engage in risky behaviour, as examples by

BYJU’S CLASSES

U.S. and European bank behaviour leading to the great financial crisis of 2008-09 show.

The bailouts they then require tend to be even more expensive for the

public exchequer because bank runs have to be prevented. In India, in the decade before the nationalisation of banks in 1969, there

was an average of more than 35 private bank failures every year.

After the liberalising reforms of the 1990s, the collapse of the private

Global Trust Bank and Centurion Bank (among others) resulted in mergers, with the losses being borne by public sector banks.

Private banks such as Axis and ICICI also face large NPAs, often with the

same companies that are defaulting on public banks. Kotak Mahindra Bank and several others have been found guilty of providing unsecured

loans and ever-greening, practices that the PNB is now accused of.

In fact, because of the opacity of banking practices, public banks are actually easier to regulate.

So why has banking regulation in India failed to this extent?

It is not only mala fide intent and corruption but also an overall

approach to economic policy. The RBI may have been too occupied in counting old currency notes and

dealing with the other damaging consequences of demonetisation to pay

enough attention to its real job — of bank regulation. But more significantly, this government, like the previous one, has

created incentives for all banks to privilege large high-profile corporate

borrowers and be relatively lax on their repayment in the mistaken belief

that this would encourage sustained income growth. This context makes it easy for some players to game the system.

Recovering from this will require stricter adherence to sound banking

rules and more transparency and accountability from both public and private players. But most of all, these would apply to the regulators

themselves and the government that frames all this.

1. For India, it should be neighbourhood first

As India’s salience in global matters grows — amply demonstrated

recently by the presence of 10 leaders from the Association of Southeast

Asian Nations (ASEAN) at India’s Republic Day celebrations, the visit of Israeli Prime Minister Benjamin Netanyahu to India, and Prime Minister

Narendra Modi’s latest forays to the United Arab Emirates (UAE), Oman

and Palestine — its leaders also need to contemplate and reflect deeply on what is happening in India’s immediate neighbourhood.

In the vicinity

Far more than East, South-east Asia, or West Asia, it is India’s

immediate neighbourhood that directly impacts it geopolitically, geo-strategically and geo-economically.

BYJU’S CLASSES

Whatever be the ambit of India’s reach elsewhere, India’s principal focus, hence, will need to be on this neighbourhood.

India can afford to live with demands such as the one made at the

recently concluded ASEAN-India Commemorative Summit, where it was urged to play a pro-active role in the Asia-Pacific region, without needing

to take hard decisions.

It possibly also does not have to answer questions as to whether ASEAN

nations fully back India’s membership of the Quadrilateral (Australia, Japan, the United States and India), even as most of them back China’s

Belt and Road Initiative.

India can even afford to skirt the issue as to whether ASEAN-India relations are all embracing in nature or limited only to specific aspects.

In West Asia, India still possesses enough leeway to engage in skilful

manoeuvre around contentious issues without having to take a stand. India could, thus, successfully handle an Israeli Prime Minister’s visit to

India just prior to Mr. Modi’s visit to Palestine, and yet avoid a negative

fallout. It could also separate the technological blush of Mr. Netanyahu’s visit

without having to take a clear stand on the issue of Jerusalem.

Likewise, Mr. Modi, during his Palestine visit could conclude as many as

six agreements and express the hope that Palestine would soon emerge as a sovereign independent country in a peaceful manner without having

to specifically refer to a united and viable Palestine.

With the UAE and Oman, things have been easier. With the former, trade and economic ties as also counter-terror aspects have been on a growth

curve.

With the latter, an established friend, the option of closer naval co-operation and of reaching an agreement to give the Indian Navy access to

Duqm port did not prove difficult.

It is in South Asia where troubles are mounting, where India cannot succeed without looking at some hard options.

For instance, how to deal with a new government in Nepal (comprising

the Left Alliance of the CPN-UML led by Oli and the CPN-Maoist Centre

led by Prachanda) with few pretensions as to where its sympathies lie. India also needs to now contemplate the prospect of prolonged unrest

and possibly violence, both communal and terror-related, in

neighbouring Bangladesh, prior to scheduled elections in 2019. This follows the conviction by a special court in Dhaka of Bangladesh

Nationalist Party leader and three-time Prime Minister Khaleda Zia on

corruption charges. Dealing with both Nepal and Bangladesh will need more than fine gestures; they will need far more closer monitoring.

Another and a more imminent challenge for India is to sort out the

imbroglio in the Maldives which is threatening to spill out of control. No amount of dissimulation will help. India cannot afford not to be directly

engaged in finding a proper solution.

Relations between India and the Maldives have undergone significant changes since the days of former President Maumoon Abdul Gayoom.

After the Maldivian Democratic Party, headed by former President

Mohamed Nasheed, came to power, for the first time anti-Indian forces

BYJU’S CLASSES

within the Maldives (including radical Islamist groups sponsored by Pakistan and Saudi Arabia) could muster some support.

It was also Mr. Nasheed’s initial overtures to China that set the stage for

Maldivian-China relations. Under the current President, Abdulla Yameen Abdul Gayoom, anti-Indian tendencies have steadily increased and there

has been a pronounced tilt in favour of China.

The free trade agreement that the Maldives signed recently with China

has been the proverbial thin end of the wedge, providing China with an excellent opportunity to enhance its influence and retain de facto

possession of the Southern Atolls in the Maldivian archipelago.

Straddling a strategic part of the Western Indian Ocean, the Maldives today occupies a crucial position along the main shipping lanes in the

Indian Ocean.

The Southern Maldives has long remained an object of interest to the major powers. With the U.S. taking a step back, China has begun to

display a great deal of interest in the area; this coincides with its current

outreach into the Indian Ocean Region as also its ongoing plans to take control of Gwadar port (Pakistan) and establish a naval base in Djibouti

in the Horn of Africa.

India cannot, hence, afford to remain idle and must come up with an

answer soon enough that is consistent with its strategic interests. A muscular reaction would be ill-advised, despite the entreaties of Mr.

Nasheed, as the international community is likely to react adversely to

any military adventure. China is, meanwhile, playing its cards carefully, calling for home-grown

solutions and warning against any military intervention. The critical need

is to find a solution early — one that takes into account India’s geostrategic and geopolitical interests in the region. Else, it would have

far-reaching consequences as far as India’s quest for regional power

status is concerned.

Across the border

Two other issues, viz., Pakistan and Afghanistan, similarly demand our

focussed attention, and that India acts with a sense of responsibility

expected of a regional superpower. The virtual collapse of a Pakistan policy seems to affect Pakistan less and

India more. The latter is facing a daily haemorrhaging of human lives due

to cross border firing and terrorist violence from Pakistan.

In spite of its internal political crisis, and U.S. President Donald Trump’s fusillade threatening Pakistan with dire consequences if it failed to

amend its ways, Pakistan shows no sign of altering its anti-India

trajectory. Democratic India can hardly afford to remain as blasé and let things slide, without effectively trying to find ways and means to change

a situation which is certainly not to our advantage.

Equally vital for India is to try and find a way out of the Afghan morass. The daily massacre of innocents, men, women and children, civilian

officials and military personnel, experts from several countries and

diplomats, marks the start of the complete collapse of a system of governance.

BYJU’S CLASSES

Despite periodic optimistic forecasts of the Taliban being in retreat, terrorists under check, and that the Afghan government is still in charge,

Afghanistan’s position today is the worst ever since the 1970s.

This January, the capital city of Kabul witnessed one of the worst ever incidents of violence anywhere, in which over 100 civilians were killed

following a series of terror strikes.

This happened despite the presence of foreign troops, elements of the

Afghan military and also of the Afghan police. Notwithstanding the omnipresent Pakistan hand in the violence in Afghanistan, this kind of

engineered chaos over a prolonged period of time effectively demonstrates

that the Afghan state has virtually disintegrated. The collapse of the Afghan state does have severe consequences for India

and nations in the vicinity. As a regional power, India has significant

stakes in Afghanistan. Apart from the human cost and the fact that New Delhi has spent over $2 billion in providing humanitarian assistance to

Afghanistan, India’s true stake lies in sustaining the future of the Afghan

state. Its “shrivelling” or “demise” and any premature end to the attempt to

restore peace in Afghanistan will only revive memories of the worst days

of the Afghan jihad in the 1980s and 1990s, and India has every reason

to feel concerned about the fallout. Of no less consequence is the fact that if Afghanistan were to cease to

exist, its civilisational links with India would also evaporate. For a variety

of reasons, therefore, India cannot allow Afghanistan to collapse or cease to exist as a state in the modern sense. This is something that demands

India’s critical attention, and specially for a display of its leadership

skills. For all these reasons, and apart from those currently at the helm of

affairs in India, the leaderships of parties and States across the spectrum

must try and achieve a unanimity of purpose in regard to our foreign policy priorities. Today, the focus needs to be on our immediate

neighbourhood.

The outcome of the Israel-Palestine conflict, the turmoil in the East and

South China Seas, or other big-ticket issues across the world are important, but it is South Asia and the neighbourhood that demands our

concentrated attention.

If India is not seen to be actively involved in ensuring that the region is at peace and functions in conformity with its world view, any claims to

leadership would amount to little more than treading water.

1. Newborn mortality: India 12th worst among low-income countries

India has been ranked 12th-worst among 52 low-middle income countries based on the number of children dying within the first month

of their birth, which is 25.4 per 1,000 live births.

Pakistan is the worst with 45.6 newborn deaths per 1,000 live births, according to the United Nations Children’s Fund (Unicef) which has, for

BYJU’S CLASSES

the first time, come out with rankings based on their newborn mortality rate (the number of deaths per 1,000 live births).

Japan, with an NMR of 0.9 deaths per 1,000 live births, has been ranked

the world’s safest country in which to be born followed by Iceland (1) and Singapore (1.1).

The US’s NMR stands at 3.7, only slightly better than lower-middle

income countries like Sri Lanka and Ukraine, and is ranked 15 among

high-income countries. Unicef says newborn survival is closely linked to a country’s income level.

High-income countries have an average NMR of just 3. In comparison,

low income countries have an NMR of 27. This gap is significant. If every country brought its NMR to the high-income average, or below, by 2030,

16 million newborn lives could be saved.

It adds that more than 80% of newborn deaths are the result of premature birth, complications during labour and delivery and infections

such as sepsis, meningitis and pneumonia.

Babies born to mothers with no education face almost twice the risk of dying during the newborn period as compared to babies born to mothers

with at least secondary education.

1. Blockchain tech could help prevent frauds like at PNB

The adoption of blockchain by India’s banks could help avert frauds such

as the one at Punjab National Bank as the disaggregated and transparent

nature of the technology, which updates information across all users simultaneously, would have ensured that various officials would have

instantly been alerted to the creation of the letters of undertaking (LoUs),

according to bankers and blockchain specialists. Transaction reconciliation systems at present do not result in immediate

notification. Using blockchain, all parties on the chain will be

immediately notified about a transaction.

Blockchain, a distributed ledger technology originally developed as an accounting system for the cryptocurrency Bitcoin, is being researched

across the banking and financial services industries for the potential

benefits it may offer in an increasingly digitised business environment. Central banks including the U.S. Federal Reserve and the Reserve Bank

of India have been examining the technology to understand the

regulatory challenges it may pose. Blockchain potentially has far-reaching implications for the financial

sector, and this is prompting more and more banks, insurers and other

financial institutions to invest in research into potential applications of this technology.

Market participants in other securities markets are exploring the usage

of blockchain or distributed database technology to provide various services such as clearing and settlement, trading.

BYJU’S CLASSES

Indian securities market may also see such developments in the near future and, therefore, there is a need to understand the benefits, risks

and challenges such developments may pose.

Implementation at SBI

SBI was convinced of blockchain’s utility, especially its potential to improve internal fraud monitoring, and had already implemented it in its

reconciliation systems and in several cross-country payment gateways.

In blockchain, from the source system it will try to match the transactions, so one can immediately verify any transaction using

blockchain.

If the LoUs were on the blockhain, then they would have been there for

everybody to see, and every entry into the chain leaves a clear record of who made that entry.

Blockchains are immutable and distributed ledgers, which means that

anything recorded on them cannot be changed or deleted, and is instantly uploaded to all users on that blockchain.

If a bank wants to lend to a borrower, we need to know what all he has

borrowed from other institutions as well. For that, we have the CIBIL score at present, but that data is prone to human error.

Simply depending on technology to prevent frauds is fraught, since they

take place at the human level, where an official with the correct authentication can misuse the system.

The modus operandi of the fraud as it appears right now is that

somebody used all the authentication methods and it was compromised

at the user level. If that is the case, then any technology can be hoodwinked. Here, what

was given into the system is not in doubt, the one who gave it into the

system is in doubt. Still, blockchain’s technology is such that even human error can be

greatly mitigated.

Blockchain can fix this by having everything linked to the same database.

1. Planning for electric mobility

Context:

Transitioning to an electric vehicle-based regime will be difficult, but well worth it

Key facts:

Lancet Commission on Pollution and Health, published that air pollution attributed

to an estimated 6.5 million premature deaths globally, with 1.1 million being from

India.

BYJU’S CLASSES

World Health Organisation’s urban air quality database had found four Indian

cities to be among the world’s 10 most polluted.

The database also placed 10 Indian cities in the 20 worst list.

Reasons for India’s deteriorating air quality

Emissions from motor vehicles being the prime reason.

Piyush Goyal, then Union Minister for Power, said that from 2030, India

would completely shift to using electric vehicles (EVs).

The push for electric mobility was backed by the government think-tank,

NITI Aayog, which has estimated that the nation can save up to ₹4 lakh

crore by rapidly adopting EVs.

While transitioning the long-term benefits could outweigh the hardships

significantly in the wake of India’s ambitious renewable energy plans.

NITI Aayog lays stress on the need for a robust action plan to move towards

electric mobility by 2030.

India needs to address five fundamental issues immediately.

Who will take the lead.

EVs involve several actors at the national, State and city levels, respectively.

Such as Road Transport and Highways, Housing and Urban Affairs, Heavy

Industries, Power, New and Renewable Energy, External Affairs as well as

national institutes such as NITI Aayog.

Figuring out the best mode forward.

China has focussed on the use of electric buses as a catalyst for EV

penetration.

It is the largest electric bus manufacturer in the world, with most in use in

the country.

The Netherlands, on the other hand, has captured the EV market using a

simple yet well-crafted strategy of creating charging infrastructure and

encouraging investment in charging technology by providing incentives to EV

buyers.

Today, it has the densest charging infrastructure in the world and is a major

exporter of this technology.

India is today the largest manufacturer and exporter of two-wheelers and

auto-rickshaws.

Could these vehicles pave the way for an EV revolution?

Battery conundrum.

BYJU’S CLASSES

The assumption that anyone who controls the battery will control electric

mobility rings true in the current scenario.

India does not produce lithium-ion (Li-ion) batteries currently, and

companies making battery packs are dependent almost exclusively on

imports from China.

This is a cost-saving strategy as setting up a cell manufacturing unit in India

would be expensive.

Accelerating EV use in India should be linked to the “Make in India” goal

and domestic battery production.

Investment is required for research and development in battery-making and

exploring alternative technologies.

Charging infrastructure.

EV charging is more than just using electricity. It involves exchange of

information requiring a communication protocol.

There is no unique or single-charging technology for EVs.

The three major EV users, China, Japan and the European Union, have

their own charging technologies which are often conflicting and not

interchangeable.

Jobs and the economic impact.

India is the world’s fourth largest fifth auto market, where over 25 million

motor vehicles are produced.

The sector is estimated to provide direct and indirect employment to about

three crore people and accounts for 7.1% of the nation’s GDP.

The industry is estimated to grow to $300 billion in annual revenue by 2026,

creating 65 million additional jobs, and contributing over 12% to the GDP.

Hurdles and what needs to be done?

The absence of a standard global infrastructure is a major deterrent for EV

penetration in India, as creating infrastructure can be cost-intensive.

Government needs to select or develop appropriate charging technology that

avoids multiplicity and reduces the cost of infrastructure, while making it

convenient and safe for users.

Way forward

Qualitative and quantitative estimation of the new jobs the EV sector will

create would go a long way in negating apprehensions and securing the

pathway for EV technology and use.

EVs have the potential to disrupt the mobility ecosystem, and, if

implemented well, could have a positive impact on the economy as well as

the urban environment. India, however, needs a road map, with timelines,

processes, well-researched impact studies, bold initiatives and robust

investments in technological research to turn its EV dream into reality.

BYJU’S CLASSES

1. For cleaner, fairer elections

Supreme Court has introduced electoral reforms that are directed at candidates, and rarely at the

parties

Related cases

1. Lok Prahari v. Union of India: The Supreme Court’s current choice on information disclosure clears a path for future

constitutional interventions in India’s party funding regime, including the scheme of electoral

bonds

2. Association for Democratic Reforms v. Union of India (ADR): In 2002, the Supreme Court directed to disclose the information relating to criminal antecedents,

educational qualification, and personal assets of a candidate contesting elections

Now, the court has extended the disclosure obligation to further include information relating to sources of income of candidates and their “associates”

Other Information

Supreme court believes that the decision is based on the principle of Voters’ right to know about their candidate, which is an extension of their freedom of expression.

Indian voter is deprived of information related to party funding

The provision of the Representation of the People Act, 1951 exempts political parties from

disclosing the source of any contribution below Rs. 20,000 This gives political parties a convenient loophole to hide their funding sources by breaking

contributions into smaller sums, even Rs. 19,999 each

As a result, a vast majority of donations to political parties come from sources unknown to voters “The sources of a candidate’s financial support also alert the voter to the interests to which a

candidate is most likely to be responsive”

Parties occupy a special space in India when it comes to agenda setting By virtue of a strong anti-defection law in India, all elected legislators are bound by their party

agenda

KANYASHREE PRAKALPA

What is the issue?

Kanyashree Prakalpa Scheme has been hailed as a much-needed

intervention to combat the high rate of child marriage in West Bengal.

However, an examination of the scheme highlights that rather than

promoting higher education of women, the scheme has ended up entangled

in the marriage economy of rural Bengal.

It incentivises girls to continue education, while simultaneously delaying early marriages.

It provides an annual grant, as well as a larger one-time grant if the girl is still unmarried at 18 years.

The scheme targets girls between the ages of 13 and 19 years, studying in

Classes 8–11, as the dropout rate is the highest for this age group. Currently, over 40 lakh girls are beneficiaries of the scheme. As a result, the increase in enrolment rate has significantly improved the

presence of girls at the secondary and higher secondary levels.

BYJU’S CLASSES

The number of girls dropping out of school has decrease by 56%.

India ranks 81st in global corruption perception index

India has been ranked 81st in the global corruption perception index for 2017, released by Transparency International, which named the country among the worst offenders in terms of graft and press freedom in the Asia Pacific region.

The index, which ranks 180 countries and territories by their perceived levels of public sector corruption, placed India at the 81st place. In 2016, India was in the 79th place among 176 countries.

The index uses a scale of 0 to 100, where 0 is highly corrupt and 100 is very clean. India’s score in the latest ranking, however, remained unchanged at 40. In 2015, the score was

38. Transparency International further said, in some countries across the region (Asia Pacific),

journalists, activists, opposition leaders and even staff of law enforcement or watchdog agencies are threatened, and in the worst cases, even murdered.

The Philippines, India and the Maldives are among the worst regional offenders in this respect. These countries score high for corruption and have fewer press freedoms and higher numbers of journalist deaths.

In the last six years, 15 journalists working on corruption stories in these countries were murdered, as reported by the Committee to Protect Journalists (CPJ).

In the latest ranking, New Zealand and Denmark were placed the highest, with scores of 89 and 88, respectively. On the other hand, Syria, South Sudan and Somalia were ranked the lowest with scores of 14, 12 and 9, respectively.

Meanwhile, China with a score of 41 was ranked 77th on the list, while Brazil was placed at 96th with a score of 37 and Russia was at the 135th place with a score of 29.

Further analysis of the results indicates that countries with the least protection for press and NGOs also tend to have the worst rates of corruption.

The analysis, which incorporates data from CPJ, showed that in the last six years, 9 out of 10 journalists were killed in countries that score 45 or less on the index.

Garbage Disposal and Collection - Mysore model

India has a poor garbage disposal and collection mechanism, which leads to various problems.

Innovative solutions and behavioural change based on Mysore model will address the concerns.

In India ‘Reduce, reuse, recycle’ mechanism lags people’s commitment, a certain level of awareness.

Source segregation method to separate the bio-degradable from the non-bio-degradable garbage (usually packaging) continues to see patchy success for various reasons.

Coercive methods of penalties and fines are also not easily implementable in a democratic polity.

BYJU’S CLASSES

The result is many of our cities are often eyesores with garbage strewn around and our waterways heavily polluted with floating junk, causing enormous problems for citizens and animals alike.

Consumers need to be ensure that the discards have a value attached to them that is assuredly ‘redeemable’ in the immediate future.

When a person thinks twice about the worth of their junk before throwing it away simply, they will try to monetize it anyhow.

Consumers rarely throw old newspapers into the garbage bin, they would rather sell them to old paper shops because we know that they will fetch some returns.

In the same way consumers must be made aware that used cans, polythene bags, etc. which generate tonnes of garbage can also monetized.

Some institutions, cities and countries across the globe have tried this quite successfully.

What is the Mysore model?

Karnataka government is following an innovative solution in Mysore Zoo to address the garbage disposal concerns.

Mysore Zoo collects a fixed amount for the plastic bottles and other disposable items at the entrance.

At the exit the money is returned if the empty bottle or other disposable items are turned in. This model is very successful and rarely came across a case where a person threw away

garbage not caring for the amount that he would get back on surrendering it.