Page 11 - montage

of capital and, second, they have reduced banks’ LPG cooking gas - landed in the Airtel Payments bank
capacity to lend for large long-term projects, which accounts of many customers. The customers cried foul
is why most public sector banks are now focusing and said that they had not even signed up for Airtel
on retail. The report classifies major economies into Payments Bank account. The subsidy amount transferred
four blocks — very low NPA, low NPAs, medium was over Rs 40 crore and the accounts linked without
level NPA and high NPAs. The countries with very permission over 20 lakh, though it is only a guess.
low level of bad loans are Australia, UK, Hong Kong,
Canada and South Korea. Within the emerging market Healthcare costs land 5 crore Indians in poverty.
economies, China, Argentina and Chile had low ratios Offer your comments on this news headline.
of 1-2 per cent. Healthcare is becoming expensive; in fact, estimated
Some economists point out that the bad loan half of the world’s population cannot get necessary
problem in India is serious. Its comparative high Healthcare. Nearly 100 million people, including Indians
growth is stemming the tide of economic pressures are driven to poverty because they have to bear
but stress in the economy is too visible. These NPAs healthcare costs from their own earnings. According to
are adversely affecting the big development projects World Bank and the World Health Organization’s
and Indian Banks are scared of creating new loans. recently released report entitled ‘Tracking Universal
Government instead of punishing the big business Health Coverage: 2017 Global Monitoring Report’s,
for defaulting in paying back their loans is writing currently 800 million people spend at least 10% of their
off their loans. Inflation is becoming unbearable for household budgets on health expenses for themselves,
the common man and in the absence new projects, a sick child or other family member. Almost 100 million
government is failing to create new jobs. are pushed into extreme poverty because of medical
costs and survive on $1.90 or less a day. The report
UIDAI stalls Airtel and its online bank’s e- considers “catastrophic” spending on health on the
KYC service. Explain why UIDAI has taken basis of out-of-pocket expenditures exceeding 10% and
such drastic step against a major internet 25% of household total income or consumption and
service provider. finds one-sixth of households in India (exceeding 10%
The Unique Identification Authority of India (UIDAI) household income) and 3.9% (exceeding 25% household
has prohibited Bharti Airtel and the Airtel Payments income) bear such spending exceeding a household’s
Bank from conducting e-verification (eKYC) for ability to pay without reimbursement by a third party.
existing and new customers. This unprecedented Among the BRICS countries, South Africa, which
measure against Airtel is in response to allegations spends 8.7% of GDP on health, and Russia, which has
that this telecom major had been clandestinely adding a predominantly state-funded healthcare system, had
customers to its bank while carrying out their just 0.1% and 0.6% respectively, of households
Aadhaar verification. The action against Airtel means spending over 25% of their income on healthcare. This
that no new customer or its payments bank, will be figure was 0.8% in the US. China had the highest
able to have a fast-track and paperless biometric proportion (4.8%) and in Brazil it was 3.5% of
authentication through Aadhaar. They will be households. According to the report, 808 million
required to submit a hard copy of their Aadhaar, or worldwide incur catastrophic health spending at the
other permissible identity documents to be verified 10% level. Latin America and Asia have the highest
through the long-drawn physical processes. Also, rates of people with out-of pocket expenditures
the mandatory Aadhaar verification of mobile exceeding 10% or 25% of total household consumption
customers - which needs to be completed by March or income. The report shows that 4.2% and 4.6%
31 - will have to be done through physical process households in India, based on two different poverty
for Airtel’s customers. lines, are impoverished by spending on health; there
According to an Airtel spokesperson: “We can are about 24 crore households in India, that is around a
confirm that we have received an interim order from crore households or a population of nearly 5 crore being
the UIDAI regarding temporary suspension of impoverished. These impoverished people are forced
Aadhaar linked e-KYC services till their satisfaction by an adverse health event to cut their spending on
on certain processes relating to Airtel payment banks food, shelter and clothing, to an extent that they slide
onboarding of customers.” UIDAI had earlier issued down to poverty line. The levels of health service
a show-cause notice to Airtel finding violations by coverage vary widely between countries. After nearly a
the telecom company’s ground-staff who were full term, BJP-led NDA government has not lived up to
carrying out the Aadhaar linkage process. The issue people’s expectations on health front.
of unauthorised linkages had come to the fore when [Author will appreciate feedback. Please visit him at website
the government’s social-sector subsidy - linked to www.agrawalmaharajamcluhan.com to know more]
March 2018 Competition Wizard 155