Mint StatiCA – Daily News-Based Static MCQs May-2023

Ans: 5
Solution:
The World Bank assigns the world’s economies to four income groups—low, lower-middle, upper-middle, and high income. The classifications are updated each year on July 1 and are based on the GNI per capita of the previous year. GNI measures are expressed in United States dollars (USD) and are determined using conversion factors derived according to the Atlas method.
India is in the lower middle-income country.

Answer key: 4
Solution:
India to witness GDP growth of 6.0 per cent to 6.8 per cent in 2023-24, depending on the trajectory of economic and political developments globally. Economic survey 2022-23 projects a baseline GDP growth of 6.5 per cent in real terms in FY24. Economy is expected to grow at 7 per cent (in real terms) for the year ending March 2023, this follows an 8.7 per cent growth in the previous financial year.

Answer key: 4
Solution:
Regarding new FPI registrations, the SEBI can ask them for any additional documents which may be required, according to a notification.
Under the new rules, FPIs will inform SEBI and designated depository about any false or misleading information about change in material respect and any change in their structure or control within seven working days in writing.
In addition, FPIs will have to inform in case of any penalty, pending proceedings, findings of investigations for which action may have been taken or is in the process of being taken by an overseas regulator against them within seven days.
In August 2022, SEBI had constituted a committee headed by K. V. Subramanian, former chief economic advisor to Government of India, to advise it on measures to facilitate ease of doing business by FPIs in India.
In addition, the advisory committee was entrusted with the task of suggesting measures required to encourage FPI participation in the bond market and advise on issues related to investments and operations of such investors in Indian financial markets.

Answer key: 3
Solution:
Launched by the Hon’ble PM in January 2018, the Aspirational Districts Programme (ADP) aims to quickly and effectively transform 112 most under-developed districts across the country. The broad contours of the programme are Convergence (of Central & State Schemes), Collaboration (of Central, State level Nodal Officers & District Collectors), and Competition among districts through monthly delta ranking; all driven by a mass movement.
With States as the main drivers, this program focuses on the strength of each district, identifying low-hanging fruits for immediate improvement and measuring progress by ranking districts on a monthly basis. The ranking is based on the incremental progress made across 49 Key Performance Indicators (KPIs) under 5 broad socio-economic themes – Health & Nutrition, Education, Agriculture & Water Resources, Financial Inclusion & Skill Development and Infrastructure. The delta-ranking of Aspirational Districts and the performance of all districts is available on the Champions of Change Dashboard.

Answer key: 5
Solution:
India has sold its first sovereign green bonds worth Rs 8,000 crore. These bonds are now under Fully-accessible-route (FAR) for investments by Non-residents. They are classified as ‘Special Securities’ under FAR. The Reserve Bank of India (RBI) has auctioned ₹4,000 crore worth five-year bond at coupon rate of 7.10 per cent, five basis points below the five-year sovereign yield. The central bank auctioned another ₹4,000 crore in 10-year bonds at coupon rate of 7.10 per cent at coupon rate of 7.29 per cent, which is six basis points below comparable government securities.
The proceeds from the sale of the green bonds are to be used for ‘green’ projects such as solar power, wind and small hydro projects and other public sector projects that help reduce the economy’s carbon footprint.

Ans: 5
Solution:
A Census is Constitutionally mandated in India. There are repeated references to the Census exercise in the Constitution in the context of reorganisation of constituencies for Parliament and state Assemblies. But the Constitution does not say when the Census must be carried out, or what the frequency of this exercise should be. The Census of India Act of 1948, which provides the legal framework for carrying out the Census, also does not mention its timing or periodicity.
The responsibility of conducting the decadal census rests with the Office of the Registrar General and Census Commissioner of India, Ministry of Home Affairs, Government of India.

Ans: 3
Solution:
The Executive Directors of the World Bank selected Ajay Banga as the 14th President of the World Bank for a five-year term beginning June 2, 2023. Ajay Banga most recently served as Vice Chairman at General Atlantic. Previously, he was President and CEO of Mastercard, a global organization with nearly 24,000 employees. Under his leadership, MasterCard launched the Center for Inclusive Growth, which advances equitable and sustainable economic growth and financial inclusion around the world.

Ans: 3
Solution:
Central Board of Direct Taxes (CBDT) has amended Income Tax rules to streamline and standardize the calculation and reporting of winnings from online gaming to improve tax compliance.
The Income Tax (Fifth Amendment) Rules, 2023 notified by the direct tax authority specifies a formula for computing the net winnings from online games in a financial year which is liable to a 30% income tax.
The new rule said that net taxable winning in a year would be the difference between the sum of amount withdrawn from the user account and the closing balance and the sum of non- taxable deposits made in the user account and the opening balance.

Ans: 4
Solution:
Written Consent is required for all the Credit Cards. UCBs with net worth 100 crores can issue credit cards. All Banks can issue debit cards, without needing the approval of RBI.

Ans: 3
Solution:
Credit Guarantee for MSMEs
The finance minister said that last year, she proposed revamping of the credit guarantee scheme for MSMEs and announced happily that the revamped scheme will take effect from 1st April 2023 through the infusion of Rs 9,000 crore in the corpus. This will enable additional collateral-free guaranteed credit of Rs 2 lakh crore. Further, the cost of the credit will be reduced by about 1 percent.

Ans: 4
Solution:
The Exchange has implemented index-based market-wide circuit breakers with effect from July 02, 2001 based on SEBI Circular No. SMDRPD/Policy/Cir-37/2001 dated June 28, 2001. SEBI vide its Circular no. CIR/MRD/DP/ 25 /2013 dated September 03, 2013 has partially modified the earlier circular. The revised guidelines are as below.
The index-based market-wide circuit breaker system applies at 3 stages of the index movement, either way viz. at 10%, 15% and 20%. These circuit breakers when triggered bring about a coordinated trading halt in all equity and equity derivative markets nationwide. The market-wide circuit breakers are triggered by movement of either the BSE Sensex or the Nifty 50, whichever is breached earlier. In this regard the Exchange has issued a circular no 85/2013 (Download No-24709) dated October 11, 2013.
Exchange shall compute the Index circuit breaker limits for 10%, 15% and 20% levels on a daily basis based on the previous day’s closing level of the index rounded off to the nearest tick size.

Ans: 5
Solution:
Under Article 123 of the constitution, (1) If at any time, except when both Houses of Parliament are in session, the President is satisfied that circumstances exist which render it necessary for him to take immediate action, he may promulgate such Ordinances as the circumstances appear to him to require. (b) may be withdrawn at any time by the President.

Ans: 3
Solution:
The Department of Currency Management (DCM) is headed by a Chief General Manager. The Department has planning division; resource management and remittance of treasure division; note processing and data analysis division; note exchange division; currency chest division; security and discipline cell; inspection follow-up, co-ordination and development division; staff cell, administration division; and forged note vigilance cell and the museum cell.
The Department receives notes from four currency note printing presses. Two of the currency note printing presses are owned by the Government of India and two are owned by the Reserve Bank, through its wholly owned subsidiary, the Bharatiya Reserve Bank Note Mudran Ltd. (BRBNML). The government owned presses are at Nasik (Western India) and Dewas (Central India). The other two presses are at Mysore (Southern India) and Salboni (Eastern India). Coins are minted in four mints owned by the Government of India. The mints are located at Mumbai, Hyderabad, Calcutta and NOIDA.

Ans: 5
Solution:
in May 2016, India adopted inflation targeting as a policy goal enshrined in law, it also embraced the idea of central bank “independence with accountability”. Under the new statutory framework, the central government would, in consultation with the Reserve Bank of India (RBI), set an inflation target based on the consumer price index (CPI) once every five years. The RBI was entrusted with the responsibility of meeting this target (“accountability”), for which it would be given “independence” in the conduct of monetary policy.
The Centre, under section 45ZA of the RBI Act, 1934, has fixed the CPI inflation target at 4% with an “upper tolerance limit” of 6%. However, actual year-on-year inflation in 2022 has ruled above 6% every single month from January to August. If it does so in September as well, the RBI, under section 45ZN of the same law, will have to submit a report to the Centre on “the reasons for failure to achieve the inflation target” and “remedial actions proposed to be taken by the Bank”. In this case, “failure” is defined as inflation being more than the upper tolerance level of the target “for any three consecutive quarters”.

Ans: 3
Solution:
Parliament on 22 March 2021 passed the Insurance Amendment Bill 2021 to increase the foreign direct investment (FDI) limit in the insurance sector to 74% from 49% in an attempt to attract more overseas insurance players to India.

Ans: 2
Solution:
₹2000 denomination banknote was introduced in November 2016 under Section 24(1) of RBI Act, 1934 primarily to meet the immediate currency requirement of the economy after withdrawal of the legal tender status of all ₹500 and ₹1000 banknotes in circulation at that time. With fulfilment of the objective of introduction of ₹2000 denomination and availability of banknotes in other denominations in adequate quantity, printing of ₹2000 banknotes was stopped in 2018-19.
Further, majority of the ₹2000 denomination notes were issued prior to March 2017, have completed their estimated lifespan and are not observed to be commonly used for transactions anymore. Therefore, it has been decided that, in pursuance of the “Clean Note Policy” of the Reserve Bank of India, the ₹2000 denomination banknotes shall be withdrawn from circulation. The ₹2000 banknotes will continue to be legal tender.
The facility for deposit and/or exchange of ₹2000 banknotes shall be available for members of the public up to September 30, 2023.
Deposit of ₹2000 banknotes into accounts maintained with all banks can be made in the usual manner, that is, without restrictions and subject to compliance with extant Know Your Customer (KYC) norms and other applicable Statutory requirements. The banks shall also be required to comply with Cash Transaction Reporting (CTR) and Suspicious Transaction Reporting (STR) requirements, where applicable.

Ans: 2
Solution:
Seigniorage: Seigniorage refers to the profit from money creation and, thus, is a way for governments to generate revenue without levying conventional taxes. Seigniorage is the profit that accrues to the central banks by in the following ways:
While issuing currency, the reserves/backup that the RBI keeps with itself, these reserves give RBI interest Income on the total amount of currency in circulation (minus cost of printing currency)
Interest accruing from bank balances with central banks arises from funds banks have to hold with the central banks to meet their reserve requirements (CRR), either as interest-free balances or at below market interest rates.
the inflation tax concept which is measured as the product of the inflation rate and the monetary base. (Because of inflation the currency note that the public is holding loses value which reduces the liability of RBI in real terms)

Ans: 3
Solution:
Microinsurance products offer coverage to low-income households or to individuals who have little savings.
At least twenty-five hours of training by the Insurers in the languages recognized by the Constitution of India to all micro-insurance agents and their specified persons in the areas of insurance selling, policyholder servicing and claims administration.
As per the Regulations, micro insurance policy is an insurance policy sold under a plan which has been specifically approved by the Authority as a micro-insurance product.
As per the Regulations, the minimum group size is 5.
As per the Regulations, the sum assured under an Insurance product offering Life or pension, or Health benefits shall not exceed an amount of Rs 200000.

Ans: 3
Solution:
The G7 is an informal grouping of seven of the world’s advanced economies, including Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, as well as the European Union.

Ans: 4
Solution:
An Account Aggregator (AA) is a type of RBI regulated entity (with an NBFC-AA license) that helps an individual securely and digitally access and share information from one financial institution they have an account with to any other regulated financial institution in the AA network. Data cannot be shared without the consent of the individual.
Account Aggregators cannot see the data; they merely take it from one financial institution to another based on an individual’s direction and consent. Contrary to the name, they cannot ‘aggregate’ your data. AAs are not like technology companies which aggregate your data and create detailed profiles of you.
The data AAs share is encrypted by the sender and can be decrypted only by the recipient. The end to end encryption and use of technology like the ‘digital signature’ makes the process much more secure than sharing paper documents.

Ans: 3
Solution:
Off-balance sheet interbank exposures are excluded for computing CEOBE for the priority sector targets.

Ans: 2
Solution:
Wholesale Price Index (WPI) measures the average change in the prices of commodities for bulk sale at the level of early stage of transactions. The index basket of the WPI covers commodities falling under the three Major Groups namely Primary Articles, Fuel and Power and Manufactured products. The prices tracked are ex- factory price for manufactured products, agri-market (mandi) price for agricultural commodities and ex-mines prices for minerals. Weights given to each commodity covered in the WPI basket is based on the value of production adjusted for net imports. WPI basket does not cover services.
In the new WPI series significant improvement in concept, coverage and methodology has been made. In the revised WPI basket, the number of items has been increased from 676 to 697.
The weight of an item in the revised WPI basket is based on the net traded value of the item in the base year i.e. 2011-12. The net traded value is the value of output of the item in the year 2011-12 adjusted for net imports. Thus, net traded value represents the total transactions of each product in the economy during the base year.
The weight of the Primary Article has increased from 20.1 % in WPI (2004-05) to 22.6% in WPI (2011-12). This increase is primarily attributed to the increase in the weight of “Crude Petroleum” from 0.90% in 2004-05 series to 1.94% in 2011-12 series and addition of one new item “Natural gas” with 0.46% weight. It may be noted that the average price of crude oil (Indian basket) was at peak in 2011-12.

Ans: 5
Solution:
New Delhi: The International Financial Services Centre Authority (IFSCA), the regulatory body overseeing GIFT City’s international financial services centre, is considering permitting unsponsored depository receipts (UDRs) for Indian shares, two people aware of the matter said. This move would offer investors the opportunity to invest in Indian stocks and avail of tax benefits.
By introducing Indian UDRs, the International Financial Services Centre (IFSC) in Gift City aims to boost liquidity, attracting foreign funds seeking offshore alternatives to the Mumbai stock markets. The availability of Indian UDRs, coupled with significant tax benefits, is expected to bolster the attractiveness of IFSC, the people cited above said.
Currently, Gift City offers derivatives, debt products, and UDRs of foreign companies such as Apple and Google.

Ans: 3
Solution:
Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of Indian Parliament, acts as the Principal Financial Institution for Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector as well as for co-ordination of functions of institutions engaged in similar activities

Ans: 3
Solution:
The term ‘child’ has been defined to mean “any person below the age of eighteen years”.
The State Commissions for the Protection of Child Rights (SCPCRs) and the National Commission for the Protection of Child Rights (NCPCR) have been given the authority to monitor the implementation of the act’s provisions. Both authorities are statutory in nature.
The Act specifically requires that the evidence of the child must be recorded by a Special Court within 30 days of taking cognizance of the offence. Reasons for delay have to be recorded in writing. Further, the trial must be completed within a year’s time, as far as possible.

Ans: 4
Solution:
In 2022-23, India consumed 1,503.65 billion units, a 9.4% rise over 2021-22. Consumption has grown at a steady clip each year since 2009-10 when it was 747 bn units. The annual daily peak or the day when electricity demand is at its highest (generally in the peak summer month of June), has also grown over the years. In 2022-23, demand for power peaked at 215.89 Gigawatts. But it has already been surpassed in the current financial year when an early onset of heatwave saw demand hit 226.9 GW on 18 April 2023. And at some point, in the next 30 days, it is expected to hit a new peak — of 230 GW.
India has an installed power generation capacity of over 416 GW, nearly half of which comes from coal-based power plants. But it’s not a true indicator of how much it really produces: average capacity utilization fell from 84% in 2009-10 to 53.6% in 2021-22 before recovering to 66% in April 2023.
Government of India launched the Revamped Distribution Sector Scheme (RDSS) with an outlay of Rs. 3,03,758 crore and estimated GBS from Central Government of Rs. 97,631 crores for the duration of 5 years i.e. from (FY 2021-22 to FY 2025-26). The Scheme aims to reduce the Aggregate Technical & Commercial (AT&C) losses to pan-India levels of 12-15% and Average Cost of Supply (ACS)-Average Revenue Realised (ARR) gap to zero by 2024-25.
The Scheme has two major components: Part ‘A’ – Financial support for Prepaid Smart Metering & System Metering and upgradation of the Distribution Infrastructure and Part ‘B’ – Training & Capacity Building and other Enabling & Supporting Activities. Financial assistance to DISCOMs is provided for upgradation of the Distribution Infrastructure and for Prepaid Smart Consumer Metering & System Metering based on meeting pre-qualifying criteria and achieving basic minimum benchmark in reforms.

Ans: 2
Solution:
The Union cabinet on Wednesday approved a six-year production-linked incentive (PLI) scheme for IT hardware, including laptops, tablets, personal computers, servers and edge computing devices, with an outlay of ₹17,000 crore.
Telecom minister Ashwini Vaishnaw said the scheme would attract top hardware companies such as HP, Dell and Apple to India.
“HP, Dell, Acer and others already have high volumes (market) in India. Apple is niche. The market is attractive; they’re also very seriously evaluating,” he said in response to a question during a press briefing. Several companies welcomed the scheme, with some saying they are already evaluating availing of the scheme.
The revised scheme will offer an incentive of 5% on net incremental sales over the base year, of goods manufactured in India, compared to 2% earlier, where the base year can be chosen starting from will be FY23. The scheme also provides for flexibility as the investments can be done over six years, instead of four years earlier.
Companies signing up for the scheme will get an additional optional incentive—of another 3%—if they use India-made and designed components, sub-systems or inputs. Also, the companies can take Indian contract manufacturers on board and avail of incentives if the contractors are producing for a single company.
“We’re confident that the changes made in the revised scheme will attract all the major IT hardware players to set up shop in India,” Vaishnaw said. He added that the revised PLI scheme was a result of extensive consultations with the industry over the past several months, from which the government is expecting incremental production worth ₹3.35 trillion and incremental investment of ₹2,430 crore, generating direct employment of 75,000.

Ans: 5
Solution:
None is correct.
The finance ministry has included use of credit card abroad by an Indian resident within the $250,000 limit that an individual is allowed to remit abroad in a year under the liberalised remittance scheme (LRS), showed an official order.
Under this scheme, the Reserve Bank of India allows residents to spend funds abroad up to the specified ceiling for investment and expenditure, including travel, education, medical treatment and buying securities and physical assets.
Until now, a resident Indian’s overseas use of credit cards during foreign travel was excluded from the $250,000 cap by a provision in the Foreign Exchange Management (Current Account Transactions) Rules, 2000. An amendment to the rule brought out by the finance ministry late on Tuesday showed that this exclusion has been dropped.

Ans: 1
Solution:
John Maynard Keynes (1883-1946) is undoubtedly the most influential and eminent economist of the past century. His ideas have had an abiding influence on policymakers across the world, who to this day swear by his concepts like fiscal stimulus and monetary policy as measures to revive the economy. This seems intuitive and logical. Most of the ideas were developed during the Great Depression of the 1930s. His magnum opus The General Theory of Employment, Interest and Money was published in 1936 in the middle of the two World Wars, and at the bottom of a deep worldwide recession. His approach was abstract, and yet his prescriptions seemed practical. He introduced many new concepts to macroeconomics, and one such was the prevalence of widespread involuntary unemployment to explain chronic unemployment. The word ‘involuntary’ may seem redundant, for surely nobody chooses to remain unemployed in a recession? He also posited the concept of downward sticky wages that do not fall despite high unemployment. Keynes’ advice was followed by governments, but the flaws in his model left some disquiet among economists, especially of the laissez faire bent. They were used to the idea of supremacy of supply and demand and could not easily accept ad-hoc departures from free-market principles. But if the market was functioning, why then did wages not fall towards zero to accommodate the hordes of unemployed people during a recession? Keynes was right on the facts, but his theory did not have an adequately rigorous mathematical model to explain sticky wages. And how could macroeconomic outcomes be explained by optimizing and maximizing behaviour? One policy implication of Keynesian theory was that there was a trade-off between unemployment and inflation, and that it was possible to reduce unemployment by tolerating higher inflation. This was the famous Phillips curve.

Ans: 3
Solution:
The Appointments Committee of the Cabinet (ACC) has approved the appointment of Ravneet Kaur, a 1988 batch Punjab cadre IAS officer, as the Chairperson of Competition Commission of India (CCI).

Ans: 1
Solution:
“Preferential issue” means an issue of units by a listed REIT to any select person or group of persons on a private placement basis and does not include an offer of units made through a public issue, rights issue, bonus issue, qualified institutions placement.
Any person is permitted to participate in a preferential issue of units by a REIT. However, units cannot be allotted to any person who has sold or transferred any units of the REIT during the 90 trading days preceding the relevant date. In case any sponsor(s) or members of the sponsor group(s) has sold/transferred their units of the REIT during the 90 trading days preceding the relevant date, all sponsor(s) and members of the sponsor group(s) shall be ineligible for allotment of units in preferential issue. However, the restriction on preferential issue of units is not applicable for sponsor(s) or members of the sponsor group in case asset(s) is being acquired from that sponsor(s) or members of the sponsor group(s) and preferential issue of units is being made to that sponsor(s) or members of the sponsor group(s) as full consideration for acquisition of such asset.
Offer and allotment through private placement (including a preferential issue) cannot be made to more than 200 investors (excluding institutional investors) in a financial year. There is no requirement of filing any offer document/notice with SEBI in case of preferential issue of units.

Ans: 1
Solution:
Competition is the best means of ensuring that the ‘Common Man’ or ‘Aam Aadmi’ has access to the broadest range of goods and services at the most competitive prices. With increased competition, producers will have maximum incentive to innovate and specialize. This would result in reduced costs and wider choice to consumers. A fair competition in market is essential to achieve this objective. Our goal is to create and sustain fair competition in the economy that will provide a ‘level playing field’ to the producers and make the markets work for the welfare of the consumers.
The Competition Act, 2002, as amended by the Competition (Amendment) Act, 2007, follows the philosophy of modern competition laws. The Act prohibits anti-competitive agreements, abuse of dominant position by enterprises and regulates combinations (acquisition, acquiring of control and M&A), which causes or likely to cause an appreciable adverse effect on competition within India.
The objectives of the Act are sought to be achieved through the Competition Commission of India, which has been established by the Central Government with effect from 14th October 2003. CCI consists of a chairperson and 6 Members appointed by the Central Government.
It is the duty of the Commission to eliminate practices having adverse effect on competition, promote and sustain competition, protect the interests of consumers, and ensure freedom of trade in the markets of India.
The Commission is also required to give opinion on competition issues on a reference received from a statutory authority established under any law and to undertake competition advocacy, create public awareness and impart training on competition issues.

Ans: 2
Solution:
In 2010, Basel III guidelines were released. These guidelines were introduced in response to the financial crisis of 2008. A need was felt to further strengthen the system as banks in the developed economies were under-capitalized, over-leveraged (high debt) and had a greater reliance on short-term funding. Also, the quantity and quality of capital under Basel II were deemed insufficient to contain any further risk. Basel III norms aim at making most banking activities such as their trading book activities more capital-intensive. The guidelines aim to promote a more resilient banking system by focusing on four vital banking parameters viz. capital, leverage/debt, funding, and liquidity.
To make banks safer, banks should have higher CRAR and to increase the CRAR the capital of the banks must be increased. Capital is a combination of equity, equity-like instruments, and bonds. As per the international (Basel III) norms, the minimum capital required is 10.5% which includes 2.5% capital conservation buffer (which is nothing but just additional capital). In India RBI has kept Capital Adequacy Requirement of 11.5% (including 2.5% capital conservation buffer).

Ans: 3
Solution:
The G20 was founded in 1999 after the Asian financial crisis as a forum for the Finance Ministers and Central Bank Governors to discuss global economic and financial issues.
The G20 was upgraded to the level of Heads of State/Government in the wake of the global economic and financial crisis of 2007, and, in 2009, was designated the “premier forum for international economic cooperation”.
The G20 Summit is held annually, under the leadership of a rotating Presidency. The G20 initially focused largely on broad macroeconomic issues, but it has since expanded its agenda to inter-alia include trade, sustainable development, health, agriculture, energy, environment, climate change, and anti-corruption.

Ans: 4
Solution:
Union Budget 2023-24 has announced the setting up of the Urban Infrastructure Development Fund (UIDF) through the use of priority sector lending shortfall. Rs. 10,000 crore per annum will be made available for this purpose. The Fund will be managed by the National Housing Bank and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities on the basis of given guidelines. As per the Budget announcement, States will be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF. The Fund would be operationalized broadly along the lines of the existing Rural Infrastructure Development Fund.

Ans: 3
Solution:
Off-balance sheet interbank exposures are excluded for computing CEOBE for the priority sector targets.

Ans: 2
Solution:
Wholesale Price Index (WPI) measures the average change in the prices of commodities for bulk sale at the level of early stage of transactions. The index basket of the WPI covers commodities falling under the three Major Groups namely Primary Articles, Fuel and Power and Manufactured products. The prices tracked are ex- factory price for manufactured products, agri-market (mandi) price for agricultural commodities and ex-mines prices for minerals. Weights given to each commodity covered in the WPI basket is based on the value of production adjusted for net imports. WPI basket does not cover services.
In the new WPI series significant improvement in concept, coverage and methodology has been made. In the revised WPI basket, the number of items has been increased from 676 to 697.
The weight of an item in the revised WPI basket is based on the net traded value of the item in the base year i.e. 2011-12. The net traded value is the value of output of the item in the year 2011-12 adjusted for net imports. Thus, net traded value represents the total transactions of each product in the economy during the base year.
The weight of the Primary Article has increased from 20.1 % in WPI (2004-05) to 22.6% in WPI (2011-12). This increase is primarily attributed to the increase in the weight of “Crude Petroleum” from 0.90% in the 2004-05 series to 1.94% in the 2011-12 series and the addition of one new item “Natural gas” with 0.46% weight. It may be noted that the average price of crude oil (Indian basket) was at a peak in 2011-12.

Ans: 5
Solution:
New Delhi: The International Financial Services Centre Authority (IFSCA), the regulatory body overseeing GIFT City’s international financial services center, is considering permitting unsponsored depository receipts (UDRs) for Indian shares, two people aware of the matter said. This move would offer investors the opportunity to invest in Indian stocks and avail of tax benefits.
By introducing Indian UDRs, the International Financial Services Centre (IFSC) in Gift City aims to boost liquidity, attracting foreign funds seeking offshore alternatives to the Mumbai stock markets. The availability of Indian UDRs, coupled with significant tax benefits, is expected to bolster the attractiveness of IFSC, the people cited above said.
Currently, Gift City offers derivatives, debt products, and UDRs of foreign companies such as Apple and Google.

Ans: 3
Solution:
Small Industries Development Bank of India (SIDBI) set up on 2nd April 1990 under an Act of the Indian Parliament, acts as the Principal Financial Institution for the Promotion, Financing, and Development of the Micro, Small, and Medium Enterprise (MSME) sector as well as for coordination of functions of institutions engaged in similar activities

Ans: 3
Solution:
The term ‘child’ has been defined to mean “any person below the age of eighteen years”.
The State Commissions for the Protection of Child Rights (SCPCRs) and the National Commission for the Protection of Child Rights (NCPCR) have been given the authority to monitor the implementation of the act’s provisions. Both authorities are statutory in nature.
The Act specifically requires that the evidence of the child must be recorded by a Special Court within 30 days of taking cognizance of the offense. Reasons for delay have to be recorded in writing. Further, the trial must be completed within a year’s time, as far as possible.

Ans: 2
Solution:
Intellectual property rights can be defined as the rights given to people over the creations of their minds. They usually give the creator an exclusive right over the use of his/her creations for a certain period.
All the WTO agreements (except for a couple of “plurilateral” agreements) apply to all WTO members. The members each accepted all the agreements as a single package with a single signature — making it, in the jargon, a “single undertaking”.
The TRIPS Agreement says WTO member countries must comply with the substantive obligations of the main conventions of WIPO — the Paris Convention on industrial property, and the Berne Convention on copyright (in their most recent versions).
Apart from the provisions of the Berne Convention on moral rights, all the substantive provisions of these conventions are incorporated by reference. They therefore become obligations for WTO member countries under the TRIPS Agreement — they must apply these main provisions and apply them to the individuals and companies of all other WTO members.

Ans: 1
Solution:
The government has been lowering the threshold for eligible entities for e-invoicing in phases, beginning with entities with more than ₹500 crore revenue in October 2020. Now the threshold is ₹10 crore, and the new threshold of ₹5 crore will be effective from 1ST August, showed an official order from the Central Board of Indirect Taxes and Customs (CBIC) issued late on 10/05/2023.
Companies must generate these e-invoices from the portals of either government-run National Informatics Centre or the portals run by private agencies. The transaction data will then feed automatically into other tax documents like e-way bills needed for goods shipment and the GST returns. This helps in automating the GST return filing process too, leaving little scope for businesses to under-report their sales.

Ans: 4
Solution:
A consumer is defined as a person who buys any good or avails a service for a consideration. It does not include a person who obtains a good for resale or a good or service for commercial purpose. It covers transactions through all modes including offline, and online through electronic means, teleshopping, multi-level marketing or direct selling.
The central government will set up a Central Consumer Protection Authority (CCPA) to promote, protect and enforce the rights of consumers. It will regulate matters related to violation of consumer rights, unfair trade practices, and misleading advertisements. The CCPA will have an investigation wing, headed by a Director-General, which may conduct inquiry or investigation into such violations.
The CCPA may impose a penalty on a manufacturer or an endorser of up to Rs 10 lakh and imprisonment for up to two years for a false or misleading advertisement. In case of a subsequent offence, the fine may extend to Rs 50 lakh and imprisonment of up to five years.
Consumer Disputes Redressal Commissions (CDRCs) will be set up at the district, state, and national levels.

Ans: 4
Solution:
NIFTY IT is a sectoral index on the National Stock Exchange (NSE) that captures the IT sector’s performance in the Indian economy. It is a real-time index of 10 tradable, exchange-listed IT stocks engaged in software development, hardware, IT infrastructure, etc.
The basic industries eligible to be included in the NIFTY IT index are the ones dealing with Computers Software & Consulting, Computers Hardware & Equipment, Education, IT-enabled Services, and Software Products.
This NIFTY IT index was launched with the base date as January 1, 1996, and the base value at 1000, which was later revised to 100 w.e.f. from May 28, 2004. The NIFTY IT share price since inception has breached the levels of 26000 at ~25 P/E multiples. It is reconstituted semi-annually.
To be included in the NIFTY IT index, the securities must fulfil the following eligibility criteria:
It should be listed on the National Stock Exchange.
Should form a part of NIFTY 500.
Should be a part of the IT sector.
Should have a trading frequency of at least 90% in the past six months.

Ans: 2
Solution:
Base Rate was introduced in July 2010 replacing the Benchmark Prime Lending Rate (BPLR) system. Base Rate is the minimum rate below which Scheduled Commercial Banks cannot lend. RBI publishes guidelines for calculation of Base Rate and every bank calculates its own base rate.
From 1st April 2016, RBI introduced a new methodology for calculation of the Base Rates based on marginal cost of funds rather than average cost of funds. This new methodology is called Marginal Cost of Funds based Lending Rate (MCLR) or Base Rate based on marginal cost of funds.
RBI has made it mandatory for banks to link all new floating rate personal or retail loans and floating rate loans to MSMEs to an external benchmark effective October 1, 2019. Banks can choose one of the four external benchmarks – repo rate, three-month treasury bill yield, six-month treasury bill yield or any other benchmark interest rate published by Financial Benchmarks India Pvt. Ltd. Banks are not mandated to link their deposit rates with an external benchmark rate.

Ans: 4
Solution:
Agriculture Crop Year: 1st July – 30th June; Marketing Season of Kharif crops starts from 1st October; Marketing Season of Rabi crops starts from 1st April.
Before the sowing, during each Rabi and Kharif crop season, Government of India, Ministry of Agriculture and Farmers’ Welfare announces the Minimum Support Prices (MSP) for procurement based on the recommendation of the Commission for Agricultural Costs and Prices (CACP) under Ministry of Agriculture and Farmers’ Welfare and upon approval of the Cabinet Committee on Economic Affairs (CCEA).
MSP does not have any legal backing till now and farmers can’t demand it as a legal right. It is just government policy and an administrative decision to purchase some food grains at MSP. And govt can’t even force private players to procure at MSP.
CACP, which recommends MSP, is again not a statutory body and it is just an office attached to Ministry of Agriculture. CACP just recommends MSP but the decision on fixing and even not fixing and its implementation (i.e., procurement at MSP) lies with the Govt.
Among several criteria for recommending the MSP, the most important one is the cost of production of farmers and margin/profit on it. The cost of production (All-India weighted average Cost of Production) of agricultural produce is calculated in three ways: A2, A2+FL and C2.
A2 costs basically cover all paid-out expenses, both in cash and in kind, incurred by farmers on seeds, fertilizers, chemicals, hired labour, fuel, irrigation, etc.
A2+FL cover actual paid-out costs plus an imputed value of unpaid family labour.
C2 costs are more comprehensive, accounting for the rentals and interest forgone on owned land and fixed capital assets respectively, on top of A2+FL.
Finance Minister, while presenting the budget of 2018-19 announced that, the Government will be offering MSP of at least 50 percent over cost of production (A2 + FL). MSP is same across India for a particular crop.

Ans: 5

Ans: 3
Solution:
The following are some basic differences in CPI, WPI and GDP deflator:
In wholesale market services are not traded, so WPI does not include the inflation in services, while CPI and GDP deflator capture inflation in services also.
The goods purchased by consumers in the retail market do not represent all the goods produced in the country (capital goods are purchased by the companies), so CPI does not include such capital goods but GDP deflator takes into account of all such goods and services produced in the country.
CPI and WPI include prices of goods produced domestically and imported but the GDP deflator does not include prices of imported goods.
The weights are constant (in the basket) in CPI and WPI, but they differ according to the production level of each good and service in the GDP deflator.

Ans: 2
Solution:
During the Pittsburgh summit in September 2009, the G20 leaders committed to strengthening the regulatory system for banks and other financial firms and also act together to raise capital standards, implement strong international compensation standards aimed at ending practices that lead to excessive risk-taking, improve the over-the-counter derivatives market and to create more powerful tools to hold large global firms to account for the risks they take. For all these reforms, the leaders set for themselves strict and precise timetables.
Consequently, the Basel Committee on Banking Supervision (BCBS) released a comprehensive reform package entitled “Basel III: A global regulatory framework for more resilient banks and banking systems” (known as Basel III capital regulations) in December 2010.

Ans: 5
Solution:
None is correct.
Reserve Bank of India introduces the RBI-Digital Payments Index
As announced in the Statement on Developmental and Regulatory Policies as part of the Sixth Bi-monthly Monetary Policy Statement for 2019-20 dated February 06, 2020, the Reserve Bank of India has constructed a composite Digital Payments Index (DPI) to capture the extent of digitization of payments across the country.
The RBI-DPI comprises 5 broad parameters that enable the measurement of the deepening and penetration of digital payments in the country over different time periods. These parameters are – (i) Payment Enablers (weight 25%), (ii) Payment Infrastructure – Demand-side factors (10%), (iii) Payment Infrastructure – Supply-side factors (15%), (iv) Payment Performance (45%) and (v) Consumer Centricity (5%). Each of these parameters has sub-parameters which, in turn, consist of various measurable indicators. The major sub-parameters under each parameter are available here.
The RBI-DPI has been constructed with March 2018 as the base period, i.e. DPI score for March 2018 is set at 100. The DPI for March 2019 and March 2020 work out to 153.47 and 207.84 respectively, indicating appreciable growth. Going forward, RBI-DPI shall be published on RBI’s website on a semi-annual basis from March 2021 onwards with a lag of 4 months.

Ans: 3
Solution:
“Overseas Direct Investment (ODI)” means acquisition of any unlisted equity capital or subscription as a part of the Memorandum of Association of a foreign entity, or investment in 10% or more of the paid-up equity capital of a listed foreign entity, or investment with control where investment is less than 10% of the paid-up equity capital of a listed foreign entity.
Explanation: Once an investment in a foreign entity is classified as ODI, the investment shall continue to be treated as ODI even if such investment falls below 10% of the paid-up equity capital or the investor loses control in the foreign entity.
“Overseas Portfolio Investment (OPI)” means investment, other than ODI, in foreign securities. The following is further provided:
OPI shall not be made in:
any unlisted debt instruments; or
any security which is issued by a person resident in India who is not in an IFSC; or
any derivatives unless otherwise permitted by Reserve Bank; or
any commodities including Bullion Depository Receipts (BDRs).

Ans: 2
Solution:
mRNA Vaccines need to be stored in low temperature so that the molecules do not get degenerated. Unlike DNA Vaccines where antigen is directly added to stimulate antigen response, mRNA Vaccine sends RNA sequence of the virus which then stimulates immune response. mRNA Vaccines are non-infectious as they are not constructed from active pathogen.

Ans: 1

Ans: 3
Solution:
A threshold for transactions in new accounts, a Central ‘negative registry’ of the accounts of known fraudsters and a standard operating procedure to stop the downstream flow of funds once a fraud is reported—these are some of the measures suggested by Indian banks to stop online frauds, which are on the rise, according to data from the Reserve Bank of India.

Ans: 3
Solution:
India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia’s first EPZ set up in Kandla in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.

Ans: 4
Solution:
The National Investment and Infrastructure Fund (NIIF) is set up as a collaborative investment platform between Government of India, Global Investors, Multilateral Development Banks (MDB) and Domestic Financial Institutions.
Giving more information, the Minister stated that NIIF currently has three funds namely Master Fund, Fund of Funds and Strategic Opportunities Fund that have invested in 16 entities covering ports and logistics, renewable energy, roads, digital infrastructure, healthcare, and manufacturing among others.
The Memorandum of Understanding (MOU) was signed in November 2022 to facilitate investment across multiple sectors in India through an India Japan Fund

Ans: 2
Solution:
GIFT is being developed as a global financial and IT Services hub, a first of its kind in India, designed to be at or above par with globally benchmarked financial centres. GIFT’s Master Plan facilitates Multi Services SEZ with International Financial Services Centre (IFSC) status, Domestic Finance Centre and the associated Social infrastructure. “GIFT SEZ Limited” has been formed by Gujarat International Finance Tec-City Company Limited (GIFTCL) for development of Multi Services SEZ at Gandhinagar with the prime focus on development of IFSC and allied activities in SEZ.
IT companies do not require approval from any regulator whereas Banking, Insurance companies and capital market entities require approval from Regulator. At present the units related to Banking, Insurance and Capital market are considered as IFSC Units and regulated by International Financial Services Centres Authority (IFSCA)
GIFT City has two Zones: 1. Domestic and 2. Special Economic Zone (SEZ). All the domestic (Rupee denominated) transactions can be undertaken from GIFT domestic area.
GIFT SEZ in Gandhinagar, Gujarat has been designated as International Financial Services Centre. GIFT SEZ is the only place in India which is designated as IFSC.
Yes, IFSC units can carry out administrative and statutory expenses in Indian Rupees.

Ans: 3
Solution:
India is projected to have 41 GW of energy storage capacity along with 777GW of total installed power capacity by 2029-30, according to a Report on Optimal Generation Mix for 2029-30, released by Central Electricity Authority, Ministry of Power.

Ans: 3
Solution:
PMJJBY, PMSBY and APY were launched by Prime Minister Shri Narendra Modi on 9th May, 2015 from Kolkata, West Bengal.
The three schemes are dedicated to the welfare of the citizens, recognising the need for securing human life from unforeseen eventualisation and financial uncertainties. In order to ensure that the people from the unorganised section of the country are financially secure, the Government launched two insurance schemes —PMJJBY and PMSBY; and also introduced APY to cover the exigencies in the old age.

Ans: 3
Solution:
In terms of Section 20 of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance, and other banking operations, including the management of the public debt of the Union. Further, as per Section 21 of the said Act, RBI has the right to transact Government business of the Union in India.
State Government transactions are carried out by RBI in terms of the agreement entered with the State Governments in terms of section 21 A of the Act. As of now, such agreements exist between RBI and all the State Governments except Government of Sikkim. Thus, the legal provisions vest Reserve Bank of India with both the right and obligation to function as banker to the government.
The Reserve Bank of India is the aggregator for accounting of all GST collections in the respective government accounts. Agency banks who collect the GST for challans generated by tax payers online on the GST portal report the collections for settlement to government accounts to RBI.
Reserve Bank of India maintains the Principal Accounts of Central as well as State Governments at its Central Accounts Section, Nagpur. It has put in place a well-structured arrangement for revenue collection as well as payments on behalf of Government across the country.

Ans: 1
Solution:
Provisions as to the Administration of Tribal Areas in the States of Assam, Meghalaya, Tripura and Mizoram and also the ILP areas.
If there are different Scheduled Tribes in an autonomous district, the Governor may, by public notification, divide the area or areas inhabited by them into autonomous regions.
Constitution of District Councils and Regional Councils. There shall be a District Council for each autonomous district consisting of not more than thirty members, of whom not more than four persons shall be nominated by the Governor and the rest shall be elected based on adult suffrage.

Ans: 1
Solution:
Insurance Regulatory and Development Authority of India (IRDAI), is a statutory body formed under an Act of Parliament, i.e., Insurance Regulatory and Development Authority Act, 1999 for overall supervision and development of the Insurance sector in India.
As per Section 4 of IRDAI Act, 1999, the composition of the Authority is: Chairman; Five whole-time members; Four part-time members.
The Insurance Ombudsman can entertain complaints where the quantum of loss payable under the insurance policy does not exceed rupees Thirty Lakhs.

Ans: 4
Solution:
Those Indian entities fulfilling the following conditions shall be considered as ‘Qualified Jewellers’ and shall be permitted to transact as trading members or clients of trading members, on IIBX, for the purpose of import of gold under the above-mentioned ITC(HS) codes:
The entity shall be engaged in the business of goods falling under ITS(HS) codes 7108, 7113, 7114 and 7118 under Chapter 71 of ITC(HS).
The entity must have filed due GST returns up to the preceding month prior to making an application to the IIBX. Further, a certificate should be submitted by the entity, duly attested by a practising-chartered accountant or a practising cost accountant or a practising company secretary, stating that 90% of the average annual turnover in the last 3 financial years are through dealing in goods under precious metals; and
The entity shall have a minimum net worth of 25 crore as per its latest audited financial statement.

Ans: 3

Ans: 5
Solution:
An Increase in NEER reflects appreciation as the value of domestic increases w.r.t foreign currencies as more currencies can be brought from Rupee.
NEER is unadjusted weighted average rate at which one country’s currency exchanges for a basket of multiple foreign currencies.
The coverage of the NEER and REER basket has been expanded from 36 to 40 currencies.