fractured earth

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the bandhan experiment

early in april, the rbi surprised most financial sector watchers by granting a banking license to bandhan, a microlender with most of its operations in eastern india. in a story out today, my colleague atmadip and i take a closer look at this decision. and say that this is a high stakes experiment — for the rbi, which is looking for fresh ideas on how to deepen financial inclusion; for the mfis, which, given rising competition from banks, mobile companies and banking correspondents, are looking for new ways to survive and grow; and for bandhan itself, which has to pupate into a bank without losing its quick response times, but while guarding against mis-selling of financial products to its vulnerable client-base.

Yet more stand behind tiny counters and sell nimbu paani or bhelBSE -0.80 %. The nature of enterprise is local, small and on the edge of subsistence.

should aadhaar be junked?

The last 60 days have not been good to India’s much-feted Aadhaar project.

On the 30th of January, the UPA pressed the pause button on direct benefits transfer for cooking gas. On 26 February, the Mumbai High Court directed Aadhaar to share its biometrics database with the CBI. A year earlier, a seven year old had been raped in Goa. And the investigating agency, struggling to make headway, had asked the Unique Identification Authority of India (UIDAI) for biometrics it had collected in Goa. UIDAI refused to share information saying such a move would violate privacy of its number-holders and that its biometric database and deduplication systems were not designed for forensic inquiries. In response, the CBI went to the Mumbai High Court which directed UIDAI to share its database.

The third blow fell on 24 March when investigative journalism portal Cobrapost aired videos that allegedly showed UIDAI’s enrolment agencies agreeing to enrol people from neighbouring countries in return for a bribe. Between them, these three events underlined long-standing questions about the Aadhaar project.

Between them, these three developments highlighted large worries about the ambitious Aadhaar project. Read more here.

the greens step in

Even as the ministry of environment met its March 31 deadline to submit a plan to the Supreme Court for a new environment regulator, a set of academics, activists and environmental lawyers have weighed in with their own design. Concerned that the ministry version “would not meet the minimum standards of an independent regulatory authority”, this set, called Watchdog and Action Group for the Environment, have proposed an authority that has greater powers and independence than the design proposed by the environment ministry.

this latest development is a good one. some of the suggestions this group makes are very good. more than that, this is one step towards broadening and deepening the debate on the sort of environment authority india should have.