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  1. Jammu & Kashmir Reorganization Act 2019:

Prelims- Date of enactment of the Act

Mains- Provisions of the Act

Why in News-

The Jammu & Kashmir Reorganisation Act passed by the Parliament on August 6 had 52 errors. Recently the Ministry of Law and Justice issued a notification correcting the mistakes  ranging from spelling and grammatical errors to incorrect dates.The Act downgraded and bifurcated the State of Jammu and Kashmir into two Union Territories- J&K and Ladakh.

Key Points-

  • The Jammu and Kashmir Reorganisation Act, 2019is an act of the parliament of India. It contains provisions to reconstitute the state of Jammu & Kashmir into two union territories, one to be eponymously called Jammu & Kashmir, and the other Ladakh. The act will come into effect on 31 October 2019.
  • The introduction of the bill was preceded by a presidential order under  Article 370 of the Indian constitution that revoked Jammu & Kashmir’s special status, and mandating, inter alia, that all the provisions of the Indian Constitution would be applicable to Jammu and Kashmir. This enabled the parliament to enact the legislation.
  • Reorganisation of Jammu and Kashmir: The Act reorganises the state of Jammu and Kashmir into: (i) the Union Territory of Jammu and Kashmir with a legislature, and (ii) the Union Territory of Ladakh without a legislature.  The Union Territory of Ladakh will comprise Kargil and Leh districts, and the Union Territory of Jammu and Kashmir will comprise the remaining territories of the existing state of Jammu and Kashmir.
  • Lieutenant Governor:The Union Territory of Jammu and Kashmir will be administered by the President, through an administrator appointed by him known as the Lieutenant Governor.  The Union Territory of Ladakh will be administered by the President, through a Lieutenant Governor appointed by him.


  • Legislative Assembly of Jammu and Kashmir:The Act provides for a Legislative Assembly for the Union Territory of Jammu and Kashmir.  The total number of seats in the Assembly will be 107.  Of these, 24 seats will remain vacant on account of certain areas of Jammu and Kashmir being under the occupation of Pakistan.  Further, seats will be reserved in the Assembly for Scheduled Castes and Scheduled Tribes in proportion to their population in the Union Territory of Jammu and Kashmir.  In addition, the Lieutenant Governor may nominate two members to the Legislative Assembly to give representation to women, if they are not adequately represented.
  • The Assembly will have a term of five years, and the Lieutenant Governor must summon the Assembly at least once in six months. The Legislative Assembly may make laws for any part of the Union Territory of Jammu and Kashmir related to: (i) any matters specified in the State List of the Constitution, except “Police” and “Public Order”, and (ii) any matter in the Concurrent List applicable to Union Territories.  Further, Parliament will have the power to make laws in relation to any matter for the Union Territory of Jammu and Kashmir.
  • Council of Ministers: The Union Territory of Jammu and Kashmir will have a Council of Ministers of not more than ten percent of the total number of members in the Assembly.  The Council will aide and advise the Lieutenant Governor on matters that the Assembly has powers to make laws.  The Chief Minister will communicate all decisions of the Council to the Lieutenant Governor.
  • High Court: The High Court of Jammu and Kashmir will be the common High Court for the Union Territories of Ladakh, and Jammu and Kashmir.  Further, the Union Territory of Jammu and Kashmir will have an Advocate General to provide legal advice to the government of the Union Territory.
  • Legislative Council:The Legislative Council of the state of Jammu and Kashmir will be abolished.  Upon dissolution, all Bills pending in the Council will lapse.
  • Advisory Committees: The central government will appoint Advisory Committees, for various purposes, including: (i) distribution of assets and liabilities of corporations of the state of Jammu and Kashmir between the two Union Territories, (ii) issues related to the generation and supply of electricity and water, and (iii) issues related to the Jammu and Kashmir State Financial Corporation.  These Committees must submit their reports within six months to the Lieutenant Governor of Jammu and Kashmir, who must act on these recommendations within 30 days.
  • Extent of laws:The Schedule lists 106 central laws that will be made applicable to Union Territories of Jammu and Kashmir and Ladakh on a date notified by the central government.  These include the Aadhaar Act, 2016, the Indian Penal Code, 1860, and the Right to Education Act, 2009.  Further, it repeals 153 state laws of Jammu and Kashmir.  In addition, 166 state laws will remain in force, and seven laws will be applicable with amendments.  These amendments include lifting of prohibitions on lease of land to persons who are not permanent residents of Jammu and Kashmir.
  1. Pradhan Mantri Kisan Maan Dhan Yojana:

Prelims- Key features

Mains- significance of the scheme

Why in News-

Prime Minister Narendra Modi launched ambitious pension scheme for farmers, shopkeepers and self- employed persons in Jharkhand.

Key Features-

  • The scheme is voluntary and contributory for farmers in the entry age group of 18 to 40 years.
  • A monthly pension of Rs. 3000/– will be provided to them on attaining the age of 60 years.
  • The farmers will have to make a monthly contribution of Rs.55 to Rs.200, depending on their age of entry, in the Pension Fund till they reach the retirement date i.e. the age of 60 years.
  • The Central Government will also make an equal contribution of the same amount in the pension fund.
  • The spouse is also eligible to get a separate pension of Rs.3000/- upon making separate contributions to the Fund.
  • The Life Insurance Corporation of India (LIC) shall be the Pension Fund Manager and responsible for Pension pay out.
  • In case of death of the farmer before retirement date, the spouse may continue in the scheme by paying the remaining contributions till the remaining age of the deceased farmer.If the spouse does not wish to continue, the total contribution made by the farmer along with interest will be paid to the spouse.
  • If there is no spouse, then total contribution along with interest will be paid to the nominee.
  • If the farmer dies after the retirement date, the spouse will receive 50% of the pension as Family Pension.
  • After the death of both the farmer and the spouse, the accumulated corpus shall be credited back to the Pension Fund.
  • The beneficiaries may opt voluntarily to exit the Scheme after a minimum period of 5 years of regular contributions.
  • On exit, their entire contribution shall be returned by LIC with an interest equivalent to prevailing saving bank rates.
  • The farmers, who are also beneficiaries of PM-Kisan Scheme, will have the option to allow their contribution debited from the benefit of that Scheme directly.
  • In case of default in making regular contributions, the beneficiaries are allowed to regularize the contributions by paying the outstanding dues along with prescribed interest.



It is expected that at least 10 crore labourers and workers in the unorganised sector will avail the benefit of the scheme within next five years making it one of the largest pension schemes of the world

  1. Takling Liquidity, key to reviving Economy:

Prelims- Nothing

Mains- measures to check financial crises

Why in News-

Chairman and managing director of the Hiranandani Group Niranjan Hiranandani said if liquidity issues in the market are not addressed, all other efforts taken to revive the economy would fail. There is excess liquidity exists in the system, but banks are not lending.

Key Points-

What led to financial crisis-

  • It was expected that the economic slowdown situation would improve by June. But it has prolonged mainly due to liquidity issues.
  • The current slowdown was driven by local factors as against the meltdown caused by the global financial crisis in 2008.
  • The financial crisis was a global phenomenon imported into India. However, India was able to come out of it much faster. The situation was almost overcome by the end of 2009.
  • The current slowdown started with the demonetisation process in 2016.
  • It was followed by reforms such as GST, IBC, RERA, Benami law.
  • Though, individually these measures were very good, it created a tsunami-like effect together, which was a negative factor
  • Banks had stopped lending to industry, real estate, MSME and for car purchases and had been, instead, lending to NBFCs, which in turn, were giving loans to end customers.
  • Post the IL&FS crisis, the system has broken down.
  • Now, there is excess liquidity in the system, but banks are not lending

Steps taken to overcome situation

  • The transfer of ₹1.76 lakh crore surplus by the RBI to the government should hit the market in the next couple of weeks through investment in infrastructure and other projects. This would kick-start the economy.
  • The RBI’s mandate asking banks to link their lending rates on floating rate loans to retail, personal and micro, small and medium enterprises (MSME) borrowers to an external benchmark from October 1, was an excellent move.
  • This will lead to automatic transfer of benefits of lower interest rates to customers
  • Giving thrust to housing and infrastructure, textile, tourism and MSME sectors would help solve the unemployment crisis and drive growth.