Test is part of Rau’s IAS Test series for Preliminary Exam 202 4

Test ID
GENERAL STUDIES (PAPER–I)
0554
SUBJECT: ECONOMY-SOCIAL DEVELOPMENT

Time Allowed: 2 Hour Maximum Marks: 200

INSTRUCTIONS

1. IMMEDIATELY AFTER THE COMMENCEMENT OF THE EXAMINATION, YOU SHOULD CHECK

THAT THIS TEST BOOKLET DOES NOT HAVE ANY UNPRINTED OR TORN or MISSING PAGES OR
ITEMS, ETC. IF SO, GET IT REPLACED BY A COMPLETE TEST BOOKLET.

2. This Test Booklet contains 100 items (questions). Each item is printed in English Only. Each item
comprises four responses (answers). You will select the response which you want to mark on the
Answer Sheet. In case you feel that there is more than one correct response, mark the response
which you consider the best. In any case, choose ONLY ONE response for each item.

3. You have to mark all your responses ONLY on the separate Answer Sheet (OMR sheet) provided.
Read the directions in the Answer Sheet.

4. All items carry equal marks.

5. Before you proceed to mark in the Answer Sheet the response to various items in the Test booklet,
you have to fill in some particulars in the Answer Sheet as per instructions contained therein.

6. After you have completed filling in all your responses on the Answer Sheet and the examination has
concluded, you should hand over to the Invigilator only the Answer Sheet. You are permitted to
take away with you the Test Booklet.

7. Penalty for wrong answers:

THERE WILL BE PENALTY FOR WRONG ANSWERS MARKED BY A CANDIDATE IN THE

OBJECTIVE TYPE QUESTION PAPERS.

(i) There are four alternatives for the answer to every question. For each question for which a
wrong answer has been given by the candidate, one-third of the marks assigned to that
question will be deducted as penalty.

(ii) If a candidate gives more than one answer, it will be treated as a wrong answer even if one of
the given answers happens to be correct and there will be same penalty as above to that
question.

(iii) If a question is left blank, i.e., no answer is given by the candidate, there will be no penalty for
that question.

This test is part of Rau’s IAS Test series for Preliminary Exam 202 4
1. Consider the following: 4. Consider the following statements about
1. Transfer payments. the Incremental Currency Reserve Ratio
2. Value of production for self- (ICRR):
consumption. 1. The ICRR is a temporary measure
employed to drain off the excess
3. The income earned through the sale
liquidity created due to sudden
and purchase of second-hand goods.
increase in bank deposits.
4. Imputed value of rent of self-occupied
2. The ICRR replaces the existing CRR
houses.
for a given period.
How many of the above factors are
3. Unlike the CRR, the ICRR balances
included in the calculation of the GDP of attract interest from the RBI.
an economy?
How many of the above statements are
(a) Only one correct?
(b) Only two (a) Only one
(c) Only three (b) Only two
(d) All four (c) All three
(d) None
2. Consider the following statements about
money demand: 5. Which of the following is/are the potential
1. The opportunity cost of holding money benefit(s) of the UPI- Central Bank Digital
increases with increasing interest Currency (CBDC) inter-operability?
rates. 1. Same QR code can be used as point-
2. Demand for money decreases with of-sales (POS) for e-Re and UPI
increasing price levels in the economy. payments.
3. Increased demand for money reduces 2. A customer making a payment
the money multiplier effect. through UPI can be credited to the e-
Re account of the merchant and vice-
Which of the statements given above are
versa.
correct?
Select the correct answer using the code
(a) 1 and 2 only
given below:
(b) 2 and 3 only
(a) 1 only
(c) 1 and 3 only (b) 2 only
(d) 1, 2 and 3 (c) Both 1 and 2
(d) Neither 1 nor 2
3. Consider the following:
1. Increasing the Cash Reserve Ratio. 6. Consider the following statements about
2. Increasing inter-bank lending. the National Asset Reconstruction
3. Increasing deposits of the public in Company Limited (NARCL):
the banks. 1. The NARCL has been incorporated
How many of the above factors increase under the Companies Act, 2013.
the money supply in an economy? 2. The NARCL acquires bad loans from
(a) Only one the banks by paying the entire
amount in ‘Security Receipts’.
(b) Only two
3. The Government guarantee covers any
(c) All three
shortfall between the face-value of the
(d) None Security Receipts and the actual
realization.

RAUSIAS- 0554 1
 How many of the above statements are 9. Which of the following actions is/are
correct? likely to be taken by the Government as
(a) Only one part of its expansionary fiscal policy?
(b) Only two 1. Increasing corporate income tax.
(c) All three 2. Increasing transfer payments.
(d) None 3. Reducing subsidies.
Select the correct answer using the code
7. Consider the following statements about given below:
the Liquidity Coverage Ratio (LCR): (a) 1 only
1. The LCR is the proportion of High- (b) 1 and 2 only
Quality Liquid Assets set aside by a (c) 2 only
bank to meet its short-term (d) 2 and 3 only
obligations.
2. The assets held under the mandatory 10. Consider the following statements:
SLR requirements are not considered
1. The Fiscal Responsibility and Budget
as ‘High-Quality Liquid Assets’ for the
Management (FRBM) Act (2003)
purpose of computing the LCR.
mandated a debt-to-GDP ratio of 60%
Which of the statements given above for the General (Combined)
is/are correct? Government by FY 2024-25.
(a) 1 only 2. As per the Constitution of India, the
(b) 2 only States cannot directly borrow from
(c) Both 1 and 2 external sources.
(d) Neither 1 nor 2 3. There is no limit on the guarantee
given by the Central Government to
8. Consider the following statements about other's loans against the security of
the Insolvency and Bankruptcy Code the Consolidated Fund of India.
(IBC), 2016: How many of the above statements are
Statement-1: The IBC has replaced the correct?
“debtor in possession” approach with a (a) Only one
“creditor in control” regime in the (b) Only two
corporate insolvency and resolution (c) All three
process. (d) None
Statement-II: Unlike the earlier regime,
the IBC allows only the creditors to
11. Consider the following statements:
initiate the insolvency resolution process.
1. Fiscal deficit refers to the fresh
Which one of the following is correct in
borrowings made by the Government
respect of the above statements?
in a financial year.
(a) Both Statement-I and Statement-II are
2. Only the Consolidated Fund of India
correct and Statement-II is the correct
balance is considered for calculating
explanation for Statement-I
the fiscal deficit.
(b) Both Statement-I and Statement-II are
Which of the statements given above
correct and Statement-II is not the
is/are correct?
correct explanation for Statement-I
(a) 1 only
(c) Statement-I is correct but Statement-
(b) 2 only
II is incorrect
(c) Both 1 and 2
(d) Statement-I is incorrect but
Statement-II is correct (d) Neither 1 nor 2

RAUSIAS- 0554 2
12. Consider the following statements: 15. Which of the following statements about
1. Debt raised by the Government or the the Liberalised Remittance Scheme (LRS)
corporates from the external sources is/are correct?
in rupee denomination is not 1. Only current account transactions are
considered a part of the overall permissible under the Scheme.
external debt. 2. The investors, who have remitted
2. US dollar denominated debt forms the funds under the LRS, cannot reinvest
largest component of India's external their income earned from their
debt. investments under the Scheme.
Which of the statements given above Select the correct answer using the code
is/are correct? given below:
(a) 1 only (a) 1 only
(b) 2 only (b) 2 only
(c) Both 1 and 2 (c) Both 1 and 2
(d) Neither 1 nor 2 (d) Neither 1 nor 2

13. In which of the following ways the ‘off- 16. Which of the following statements is/are
budget borrowings’ are done by the correct about the Regional Connectivity
government? Scheme - UDAN (Ude Desh ka Aam
Nagrik)?
1. NSSF borrowings.
1. The airlines, under the Scheme, are
2. Issuing Special Securities.
subjected to caps on airfares running
3. Ways and Means Advances. on selected routes.
Select the correct answer using the code 2. The gap in costs and revenues of the
given below: airlines is compensated through the
(a) 1 only Viability Gap Funding.
(b) 1 and 2 only Select the correct answer using the code
(c) 3 only given below:
(d) 1, 2 and 3 (a) 1 only
(b) 2 only
14. Consider the following statements about (c) Both 1 and 2
the Sovereign Gold Bond Scheme: (d) Neither 1 nor 2
1. The Sovereign Gold Bonds (SGBs) are
the Government securities 17. Consider the following statements about
denominated in grams of gold. the female labour market as per the
2. The investors are assured of a fixed Periodic Labour Force Survey (2022-23):
value of gold at the time of maturity. 1. Female labour participation increased
3. Interest income and capital gains over the last five years.
received by the investors are exempted 2. Service sector is the largest employer
from taxation. of female labour.
How many of the above statements are Which of the statements given above
correct? is/are correct?
(a) Only one (a) 1 only
(b) Only two (b) 2 only
(c) All three (c) Both 1 and 2
(d) None (d) Neither 1 nor 2

RAUSIAS- 0554 3
18. Consider the following statements about 1. Less than 10% equity of unlisted
the Pradhan Mantri Shram Yogi Maan- companies
dhan (PM- SYM) Yojana: 2. G-secs
1. It is a contributory pension scheme, 3. Foreign currency convertible bonds
where equal matching contribution is
Select the correct answer using the code
provided by the Central Government.
given below:
2. The old age pension provided under
(a) Only one
the scheme is indexed to inflation.
(b) Only two
3. Income tax payers are not eligible for
this scheme. (c) All three
How many of the above statements are (d) None
correct?
(a) Only one 22. Which of the following statements is/are
(b) Only two correct about the recently launched
(c) All three “Corporate Debt Market Development
(d) None Fund”?
1. It is a Fund pooled from the
19. Which of the following best describes the mandatory contributions of the
Cape Town Convention? NBFCs involved in the corporate debt
market.
(a) A treaty to promote global aviation
safety. 2. The investments are backed by the
(b) A treaty that guarantees the rights of Government guarantee.
the lessors to repossess the leased Select the correct answer using the code
aircrafts in case of payment defaults. given below:
(c) A treaty to facilitate reducing (a) 1 only
environmental footprint of the aviation (b) 2 only
industry. (c) Both 1 and 2
(d) A treaty to encourage open sky
(d) Neither 1 nor 2
partnerships among the member
countries.
23. With reference to the India Infrastructure
Project Development Fund Scheme, which
20. Consider the following activities:
of the following statements is/are correct?
1. Chit funds
1. The Scheme is implemented by NITI
2. Real estate business
Aayog.
3. Atomic energy
2. Under the Scheme, ‘viability gap
4. Railway infrastructure
funding’ is provided to the private
In how many of the above activities the firms in the PPP infrastructure
Foreign Direct Investment is prohibited?
projects.
(a) Only one
Select the correct answer using the code
(b) Only two given below:
(c) Only three
(a) 1 only
(d) All four
(b) 2 only
(c) Both 1 and 2
21. Foreign investment in how many of the
(d) Neither 1 nor 2
following instruments is regarded as the
Foreign Portfolio Investment?

RAUSIAS- 0554 4
24. Consider the following statements: 27. Which of the following statements, about
1. e-NAM reduces the need for the risk weight asset calculations in India,
farmers to physically come to the is/are correct?
APMC mandis for selling their 1. The investments in the G-secs do not
produce. carry any risk.
2. Trading through the e-NAM platform 2. Risk weight asset cannot be more
provides a guaranteed procurement at than the value of the asset.
the Minimum Support Price fixed by Select the correct answer using the code
the Government. given below:
Which of the statements given above (a) 1 only
is/are correct?
(b) 2 only
(a) 1 only
(c) Both 1 and 2
(b) 2 only
(d) Neither 1 nor 2
(c) Both 1 and 2
(d) Neither 1 nor 2
28. Consider the following statements:
1. Direct monetization of deficit is
25. Consider the following statements:
mandated by the Fiscal Responsibility
1. The Swiss Challenge method is a and Budget Management Act, 2003,
bidding process in which the as a preferred deficit financing
auctioneer selects the bid, based on method.
the foreign investment the bidder
2. The Ways and Means Advances (WMA)
brings.
is the loan facility given by the RBI to
2. The banks use the Swiss Challenge
the Centre and the States to finance
method to sell-off their non-
the budget deficit.
performing assets.
Which of the statements given above
Which of the statements given above
is/are correct?
is/are correct?
(a) 1 only
(a) 1 only
(b) 2 only
(b) 2 only
(c) Both 1 and 2
(c) Both 1 and 2
(d) Neither 1 nor 2
(d) Neither 1 nor 2

29. With reference to Project AMBER,

26. Consider the following statements with
consider the following statements:
reference to the Infrastructure Investment
Trusts (InvITs): 1. It is an initiative under the aegis of
1. The InvITs are regulated by the SEBI. the Ministry of Skill Development and
Entrepreneurship (MSDE).
2. The InvITs must invest only in
completed and revenue-generating 2. The overall objective of the project is
infrastructure projects. to improve job placement and
retention outcomes.
3. The income earned from the
investments made in the InvITs is 3. This project is co-funded by the Union
exempted from taxation. and the State Governments.
How many of the above statements are How many of the above statements are
correct? correct?
(a) Only one (a) Only one
(b) Only two (b) Only two
(c) All three (c) All three
(d) None (d) None

RAUSIAS- 0554 5
30. The ‘TCRM Matrix’, recently in the news, 33. Consider the following reports:
is related to which of the following? 1. The Global Financial Stability Report
(a) Cyber security tool developed by 2. The Fiscal Monitor Report
CERT-In. 3. The Global Economic Prospects
(b) Soldier protection system developed Report
by the Defence Research and 4. The World Economic Outlook Report
Development Organization. How many of the above publications are
(c) Railway signalling technology of the released by the International Monetary
Commission of Railway Safety. Fund (IMF)?
(d) Technology assessment framework of (a) Only one
NITI Aayog. (b) Only two
(c) Only three
31. In context of the ‘reference rates’, (d) All four
consider the following statements:
1. These are the interest rates that serve 34. With reference to the PM Mega Integrated
as a reference point for setting the Textile Region and Apparel (PM MITRA)
terms of financial contracts. Scheme, consider the following
statements:
2. LIBOR has emerged to replace several
alternative reference rates in different 1. It aims to set up the PM MITRA parks
jurisdictions. in the greenfield sites only.
2. The Government will provide capital
Which of the statements given above
support upto 50% of the project cost
is/are correct?
in the MITRA parks.
(a) 1 only
3. The Government will incentivize the
(b) 2 only
industries upto 3% of their total sales
(c) Both 1 and 2 turnover.
(d) Neither 1 nor 2 How many of the above statements are
correct?
32. With reference to the Index of Eight Core (a) Only one
Industries (ICI), consider the following (b) Only two
statements: (c) All three
1. The Eight Core Industries comprise 60 (d) None
percent of the weight of the items
included in the Index of Industrial 35. With reference to the District Central Co-
Production (IIP). operative Banks (DCCBs), consider the
2. Electricity generation is given the following statements:
highest weightage in the ICI. 1. They provides finance to all the co-
Which of the statements given above operative societies in the district.
is/are correct? 2. They can source funds by listing
(a) 1 only themselves in the capital markets.
(b) 2 only 3. They act as a balancing centre for the
(c) Both 1 and 2 Primary Agricultural Credit Societies
(PACSs), by diverting the surplus
(d) Neither 1 nor 2
funds of some societies.

RAUSIAS- 0554 6
 How many of the above statements are 38. Which of the following statements best
correct? describes the Global Digital Public
(a) Only one Infrastructure Repository (GDPIR)?
(b) Only two (a) Global e-commerce platform for
(c) All three purchasing Digital Public
(d) None Infrastructure services.
(b) Digital platform to integrate the global
36. With reference to the Good Manufacturing financial services.
Practice (GMP), consider the following (c) Regulatory framework to monitor the
statements: quality of free digital education.
1. The GMP covers all aspects of (d) Comprehensive resource hub and
production, from the starting virtual repository of Digital Public
materials to the training of the staff.
Infrastructure.
2. The member countries are allowed to
formulate their own requirements for
the GMP, based on the World Health 39. Consider the following statements with
Organization’s GMP. reference to the World Intellectual
Which of the statements given above Property Organization (WIPO):
is/are correct? 1. The WIPO is one of the specialized
(a) 1 only agencies of the United Nations.
(b) 2 only 2. It releases the annual World
(c) Both 1 and 2 Competitiveness Report.
(d) Neither 1 nor 2 3. India is a member of the WIPO.
How many of the above statements are
37. Consider the following statements: correct?
Statement-I: The Foreign Exchange (a) Only one
Management Act (FEMA), 1999, replaced (b) Only two
an Act, called the Foreign Contribution (c) All three
(Regulation) Act (FCRA).
(d) None
Statement-II: The FEMA gives powers to
the Central Government to regulate the
flow of payments to and from a person 40. Consider the following statements with
situated outside the country. reference to the NEST Initiative:
Which one of the following is correct in 1. It is an initiative of the Ministry of
respect of the above statements? Housing and Urban Affairs.
(a) Both Statement-I and Statement-II are 2. It has been developed for the
correct and Statement-II is the correct individual home-owners to help them
explanation for Statement-I reduce energy costs by 75 percent.
(b) Both Statement-I and Statement-II are Which of the above statements are
correct and Statement-II is not the correct?
correct explanation for Statement-I
(a) 1 only
(c) Statement-I is correct but Statement-
(b) 2 only
II is incorrect
(c) Both 1 and 2
(d) Statement-I is incorrect but
Statement-II is correct (d) Neither 1 nor 2

RAUSIAS- 0554 7
41. One CGIAR Global Initiative, recently in How many of the above statements are
the news, is related to which of the correct?
following? (a) Only one
(a) Enhancing agricultural productivity (b) Only two
through phased adoption of the (c) All three
genetically modified crops. (d) None
(b) Promoting gender equality in the
agricultural sector by addressing the
44. Consider the following statements with
issues faced by the women farmers.
reference to the Currency Chest:
(c) Build a unified approach to transform
1. The Reserve Bank of India (RBI) takes
food, land and water systems to
back mutilated notes from the public
address the challenges posed by the through the currency chests.
climate crisis.
2. The currency chests should have a
(d) An initiative to promote sustainable chest balance limit of Rs. 100 crores.
fishing practices to protect the marine
3. Only the Public Sector Banks in India
ecosystems.
are authorized by the Reserve Bank of
India to stock rupee notes.
42. With reference to the Payments How many of the above statements are
Infrastructure Development Fund (PIDF) correct?
scheme, consider the following (a) Only one
statements:
(b) Only two
1. The PIDF scheme aims to provide
(c) All three
financial assistance for the
(d) None
development of the traditional
banking infrastructure in the
underserved areas. 45. Consider the following statements with
reference to the amendments made to
2. The scheme is an initiative of the
Prevention of Money Laundering Rules in
Reserve Bank of India (RBI).
2023:
Which of the statements given above
1. It is mandatory for the banks to
is/are correct?
record financial transactions of the
(a) 1 only
politically exposed persons.
(b) 2 only
2. Partners holding a 10% stake in a firm
(c) Both 1 and 2 will come under the definition of the
(d) Neither 1 nor 2 beneficial owners.
3. Crypto currency and virtual digital
43. Consider the following statements: assets come under the ambit of the
1. The National Turmeric Board (NTB) is Anti-Money Laundering Law.
a statutory body. How many of the above statements are
2. The NTB has been established under correct?
the Ministry of Commerce and (a) Only one
Industry. (b) Only two
3. India is the largest producer, (c) All three
consumer and exporter of turmeric in (d) None
the world.

RAUSIAS- 0554 8
46. With reference to the Energy 49. With reference to inflation in India,
Conservation Building Code (ECBC) of consider the following statements:
2017, consider the following statements: 1. The Wholesale Price Index (WPI)
1. The ECBC sets minimum energy covers more items than the Consumer
standards for enabling energy savings Price Index (CPI).
upto 25 percent in compliant 2. The weightage of food in the WPI is
buildings.
higher than that in the CPI.
2. The ECBC standards are applicable
3. The Consumer Food Price Index (CFPI)
only for commercial buildings.
covers inflation on food items,
3. The State Governments have the
including prepared meals and snacks.
flexibility to modify the ECBC to suit
How many of the above statements are
local or regional needs.
correct?
How many of the above statements are
correct? (a) Only one
(a) Only one (b) Only two
(b) Only two (c) All three
(c) All three (d) None
(d) None
50. With reference to the Monetary Policy
47. With reference to the Minimum Support Committee (MPC), consider the following
Price (MSP), consider the following statements:
statements: 1. The MPC consists of six members,
1. The present method of fixing the MSP three of which are appointed by the
includes the implied cost of rent of the Central Government.
land. 2. The MPC is required to meet at least
2. It is announced based on the once every two months.
recommendations of the Ministry of Which of the statements given above
Agriculture and Farmers’ Welfare. is/are correct?
Which of the above statements are (a) 1 only
correct?
(b) 2 only
(a) 1 only
(c) Both 1 and 2
(b) 2 only
(d) Neither 1 nor 2
(c) Both 1 and 2
(d) Neither 1 nor 2
51. With reference to the Urban Cooperative
Banks (UCBs) in India, consider the
48. With reference to pulses production in
following statements:
India, consider the following statements:
1. They come under the regulatory ambit
1. The Kharif season accounts for a
of the Reserve Bank of India (RBI),
majority of the total pulses
production. under the Banking Regulation Act,
1949.
2. Tamil Nadu is the highest pulse
producing state in India. 2. The RBI has adopted a three-tiered
Which of the statements given above differential regulatory framework to
is/are correct? ensure financial soundness of the
existing UCBs.
(a) 1 only
(b) 2 only 3. The minimum ‘Capital to Risk-
weighted Assets Ratio’ (CRAR)
(c) Both 1 and 2
requirement for Tier 1 UCBs is more
(d) Neither 1 nor 2
than that of the low-tiered UCBs.

RAUSIAS- 0554 9
 How many of the above statements are 2. The maturity will result in the
correct? reduction of rupee liquidity into the
(a) Only one banking system.
(b) Only two Which of the statements given above
is/are correct?
(c) All three
(a) 1 only
(d) None
(b) 2 only
(c) Both 1 and 2
52. Which of the following countries are the
members of the OPEC? (d) Neither 1 nor 2

1. Saudi Arabia
55. With reference to the National
2. United Arab Emirates
Cooperative Exports Limited (NCEL),
3. Congo
consider the following statements:
4. Venezuela
1. It was set up by the Ministry of
Select the correct answer using the code Cooperation under the Cooperative
given below: Societies Act, 1950.
(a) 1 and 2 only 2. All cooperative societies, who are
(b) 2 and 3 only interested in exports, are eligible to
(c) 1 and 4 only become its members.
(d) 1, 2, 3 and 4 Which of the statements given above
is/are correct?

53. With reference to the ‘dispute settlement (a) 1 only

mechanism’ of the World Trade (b) 2 only
Organization (WTO), consider the (c) Both 1 and 2
following statements: (d) Neither 1 nor 2
1. Settling disputes is the responsibility
of the Dispute Settlement Body (DSB), 56. The term 'Bharat NCX', sometimes found
which consists of all WTO members. in the news, refers to which of the
2. The report of the Dispute Panel can be following?
accepted only when there is (a) Commodity exchange
consensus in favour of it among the (b) Payment settlement system
members of the DSB. (c) Cyber security exercise
Which of the statements given above (d) Gold bullion
is/are correct?
(a) 1 only 57. With reference to the ECO-mark Scheme,
(b) 2 only consider the following statements:
(c) Both 1 and 2 1. It is a compulsory scheme for the
(d) Neither 1 nor 2 labelling of the environment friendly
products.
54. With reference to the Forex Swap 2. Before awarding the certification, a
Agreements, consider the following product is evaluated based on its
statements: ability to save non-renewable and
natural resources.
1. Under the swap, the Reserve Bank of
India sells dollars to the banks, with 3. The Scheme is being administered by
an agreement to buy back those the Energy Efficiency Services Limited
(EESL).
dollars at maturity.

RAUSIAS- 0554 10
 How many of the above statements are Which of the statements given above
correct? is/are correct?
(a) Only one (a) 1 only
(b) Only two (b) 2 only
(c) All three (c) Both 1 and2
(d) None (d) Neither 1 nor 2

58. With reference to the Sustainable 61. With reference to the Areca nut, consider
Development Goals (SDGs), consider the
the following statements:
following statements:
1. The Government of India provides the
1. It is a collection of seventeen
Minimum Support Price for the Areca
interlinked objectives which were
nut.
adopted by all United Nations Member
States. 2. India is the largest producer, as well
2. These were adopted at the United as the largest consumer of this nut.
Nations Conference on Sustainable 3. It is endemic to India.
Development (Rio+20) in 2012. How many of the above statements are
Which of the statements given above correct?
is/are correct? (a) Only one
(a) 1 only (b) Only two
(b) 2 only (c) All three
(c) Both 1 and 2 (d) None
(d) Neither 1 nor 2

62. With reference to the World Customs

59. Consider the following parameters: Organization, consider the following
1. Dietary diversity statements:
2. Consumer empowerment 1. It is only intergovernmental
3. Food testing – Infrastructure and organization exclusively focused on
surveillance the customs matters.
How many of the above parameters are 2. It maintains the international
used by the FSSAI to compute the State harmonized system goods
Food Safety Index? nomenclature.
(a) Only one
Which of the statements given above
(b) Only two is/are correct?
(c) All three (a) 1 only
(d) None
(b) 2 only
(c) Both 1 and2
60. With reference to the India-Middle East-
(d) Neither 1 nor 2
Europe Economic Corridor (IMEC),
consider the following statements:
1. The IMEC is a part of the Partnership 63. With reference to the Pradhan Mantri
for Global Infrastructure Investment MUDRA Yojana, consider the following
(PGII). statements:
2. Under this Corridor, a rail route will 1. Its aim is to bring the small
connect the Jebel Ali port of the UAE entrepreneurs into the formal
to the Israeli port of Haifa. financial system.

RAUSIAS- 0554 11
 2. The loans have been divided into 66. With reference to the Sagarmala and the
Shishu; Kishore; and Tarun. Bharatmala projects, consider the
3. The rate of interest is decided solely following statements:
by the Reserve Bank of India. 1. The objective of the Sagarmala project
How many of the above statements are is to reduce the logistics cost for both
correct? domestic and EXIM cargo.
(a) Only one 2. ‘Border and international connectivity
(b) Only two roads’ is one of the components under
the Bharatmala project.
(c) All three
Which of the statements given above
(d) None
is/are correct?
(a) 1 only
64. With reference to the Asian Development
(b) 2 only
Bank (ADB), consider the following
(c) Both 1 and 2
statements:
(d) Neither 1 nor 2
1. ADB was established by the BRICS
countries.
2. India holds the largest proportion 67. With reference to onion production,
of shares in the ADB. consider the following statements:
3. The Rapid Credit Facility is a lending 1. India is the largest producer of onions
provision established by the ADB. in the world.
How many of the above statements are 2. Onion production in India has
correct? consistently increased in the last
decade.
(a) Only one
3. Uttar Pradesh is the leading state of
(b) Only two
onion production in India.
(c) All three
How many of the above statements are
(d) None
correct?
(a) Only one
65. With reference to the Logistics Ease
(b) Only two
Across Different States (LEADS), consider
(c) All three
the following statements:
(d) None
1. It evaluates the performance of the
States/UTs by focusing only on the
logistics infrastructure and services. 68. With reference to the Multidimensional
2. It is released annually by the Ministry Poverty Index (MPI), consider the
following statements:
of Road Transport and Highways of
India. 1. It assesses poverty at the macro level
and not at the individual level.
3. It entirely relies on the perception-
based surveys. 2. Health; Education; and Living
Standards are the three dimensions of
How many of the above statements are
poverty under the MPI.
correct?
3. It is released annually by the Oxford
(a) Only one
Poverty & Human Development
(b) Only two
Initiative (OPHI) and the United
(c) All three Nations Development Programme
(d) None (UNDP).

RAUSIAS- 0554 12
 How many of the above statements are 3. Term deposits offer more liquidity
correct? than demand deposits.
(a) Only one 4. Both certificate of deposit and
(b) Only two commercial papers are demand
(c) All three deposits.
(d) None How many of the above statements are
correct?
69. With reference to the Mahatma Gandhi (a) Only one
National Rural Employment Guarantee (b) Only two
Act (MGNREGA), which one of the
(c) Only three
following statements is incorrect?
(a) It provides at least 100 days of wage (d) All four
employment in a financial year to all
the members of every rural household. 72. Which one of the following is the best
(b) If work is not provided within 15 days description of ‘Greedflation’, that was in
of applying, the applicants are entitled the news recently?
to an unemployment allowance. (a) It is a condition in which slow
(c) At least one-third of the beneficiaries economic growth is coupled with
shall be women, who have registered rising unemployment.
and requested for work.
(b) It is a rapid, excessive and out-of-
(d) Social audit is mandatory for all works
control general price increase in an
executed under the MGNREGA.
economy.
(c) It refers to price inflation caused by
70. With reference to the Vizhinjam
the corporates to achieve high profits.
International Seaport Project, consider
the following statements: (d) It refers to reformulating or reducing
1. It is designed primarily to cater the quality of products while keeping
container trans-shipment, besides their prices same.
multi-purpose and break-bulk cargo.
2. The port is developed in a landlord 73. With reference to the International
model with a Public Private Monetary Fund (IMF), consider the
Partnership component. following statements:
Which of the statements given above
1. Each member of the IMF is assigned a
is/are correct?
quota, based on its position in the
(a) 1 only
global economy.
(b) 2 only
2. The voting power of the member
(c) Both 1 and 2
countries is tied to their quotas.
(d) Neither 1 nor 2
3. A member’s own quota cannot be
changed without its consent.
71. Consider the following statements:
How many of the above statements are
1. A demand deposit is the money
correct?
deposited into a bank account that
can be withdrawn without any prior (a) Only one
notice. (b) Only two
2. A time deposit is an interest-bearing (c) All three
bank account that has a pre-set date (d) None
of maturity.

RAUSIAS- 0554 13
74. Which of the following statements about Select the correct answer using the code
the Card Tokenization Rules in India given below:
is/are correct? (a) 1, 2 and 3 only
1. The tokenization is a process of (b) 2, 3 and 4 only
replacing the actual card details with (c) 1, 3 and 4 only
an alternate code.
(d) 1, 2, 3 and 4
2. The Reserve Bank of India has
mandated all the merchant
77. Which of the following statements is/are
websites/apps to compulsorily
correct?
tokenize the card transactions on
their platforms. 1. The banks are allowed to make a
compromise settlement with the wilful
Select the correct answer using the code
defaulters in India.
given below:
2. Unlike in a technical write-off, the
(a) 1 only
banks retain the legal right to claim
(b) 2 only the entire defaulted amount in a
(c) Both 1 and 2 compromised settlement.
(d) Neither 1 nor 2 Select the correct answer using the code
given below:
75. With reference to the Production Linked (a) 1 only
Incentive (PLI) scheme, consider the (b) 2 only
following statements: (c) Both 1 and 2
1. The scheme offers financial incentives (d) Neither 1 nor 2
to boost domestic manufacturing in
India.
78. With reference to the Scheme for
2. The incentives under the scheme are
Promotion of Manufacturing of Electronic
applicable to only those companies
Components and Semiconductors
who make incremental sales and (SPECS), which of the following
incremental investment over the base statements is/are correct?
year.
1. The Scheme provides financial
3. The scheme is applicable to both incentive of 25% of capital
domestic and foreign companies. expenditure for the manufacturing of
How many of the above statements are identified electronic goods.
correct? 2. The Scheme is applicable only to
(a) Only one investments in new units.
(b) Only two Select the correct answer using the code
(c) All three given below:
(d) None (a) 1 only
(b) 2 only
76. Which of the following are considered for (c) Both 1 and 2
performance-based grants/incentives (d) Neither 1 nor 2
given to the States, as recommended by
the 15th Finance Commission?
79. Which of the following statements about
1. Agriculture sector reforms FAME-II scheme is/are correct?
2. Power sector reforms 1. The scheme is applicable to privately
3. Development of Aspirational Districts owned and public transport vehicles
4. Implementation of One Nation One in the segments of three and four
Ration Card wheelers.

RAUSIAS- 0554 14
 2. The manufacturer needs to meet 50% Select the correct answer using the code
localized content requirement to be given below:
eligible for the scheme. (a) 1 only
Select the correct answer using the code (b) 1 and 3 only
given below: (c) 2 and 3 only
(a) 1 only (d) 1, 2 and 3
(b) 2 only
(c) Both 1 and 2 83. Which of the following statements best
describes the “Green debt swaps”?
(d) Neither 1 nor 2
(a) A form of insurance against default of
underlying green debt.
80. Which of the following statements best
(b) Forgiving a portion of a nation's
describes 'first loss default guarantee'?
foreign debt in exchange for local
(a) A credit guarantee scheme of the investments in the environmental
Government to the NBFCs for the conservation measures.
loans given to the MSMEs. (c) Swapping the debt of a company with
(b) A guarantee that is provided by the investments in green projects.
Government to the banks and (d) A debt instrument invested in green
financial institutions to cover losses in projects which can be converted into
case of default by the borrower. equity.
(c) A lending model servised between
digital lending Fin-Techs and their 84. With reference to the Social Stock
partner banks. Exchange (SSE) in India, consider the
following statements:
(d) None of the above.
1. Both ‘For-profit’ and ‘Not-for-profit’
enterprises can raise funds through
81. Which of the following situations best the Social Stock Exchange.
describes the term “Stock split”?
2. Only Not-for-profit organizations can
(a) Issuing additional shares to the issue the Zero Coupon Zero Principal
existing shareholders without bonds on a Social Stock Exchange.
changing the company’s value. 3. The instruments issued by the For-
(b) A company purchasing its own share profit organizations cannot be traded
from its existing shareholders. in the secondary market.
(c) Allocating shares to the holders of How many of the above statements are
convertible bonds after their maturity. correct?
(d) The dividend paid to the existing (a) Only one
shareholders expressed as a share of (b) Only two
total stock value. (c) All three
(d) None
82. Which of the following is/are the likely
impact(s) of the yield hardening of the G- 85. The terms “Bundling” and “Tying”, often
secs? seen in the news, refer to which of the
following?
1. Loss to the bond holders.
(a) Unfair trade practices adopted by the
2. Decreases the cost of borrowing to the
digital firms.
Government.
(b) Licensing mechanism for the
3. Equity instruments become more allocation of coal to the private firms.
attractive.

RAUSIAS- 0554 15
 (c) Allocation of spectrum of different 2. The tariff concessions must also be
frequencies to the same telecom extended to imports from the non-
company. signatory members on the ‘Most-
(d) Pricing mechanism of natural gas in favoured Nation’ basis.
India. 3. India is not a signatory to this
Agreement.
How many of the above statements are
86. Consider the following statements about
correct?
the Investor Risk Reduction Access (IRRA)
platform: (a) Only one
(b) Only two
1. The purpose of the IRRA platform is to
create awareness among the retail (c) All three
investors in stock market to reduce (d) None
their risk exposure.
2. This platform was developed by the 89. Consider the following statements about
SEBI. the Angel tax:
Which of the statements given above 1. It is a tax levied on the capital raised
is/are correct? through the issue of shares above the
fair market value by the listed
(a) 1 only
companies.
(b) 2 only
2. The tax is applicable for investments
(c) Both 1 and 2 received from both resident and non-
(d) Neither 1 nor 2 resident investors.
Which of the statements given above
87. Consider the following statements about is/are correct?
the International Monetary Fund (IMF)’s (a) 1 only
lending facilities to the low-income (b) 2 only
countries under the Poverty Reduction (c) Both 1 and 2
and Growth Trust (PRGT): (d) Neither 1 nor 2
1. All lending facilities under the PRGT
are currently interest free. 90. Consider the following statements:
2. The PRGT lending facilities do not Statement-I: Services imported through
involve any conditionalities. e-commerce platform are exempted from
Which of the statements given above customs duty in India.
is/are correct? Statement-II: The WTO members had
(a) 1 only agreed not to impose customs duties on
(b) 2 only electronic transmissions.
(c) Both 1 and 2 Which one of the following is correct in
respect of the above statements?
(d) Neither 1 nor 2
(a) Both Statement-I and Statement-II are
correct and Statement-II is the correct
88. Consider the following statements about explanation for Statement-I
the WTO’s Information Technology
(b) Both Statement-I and Statement-II are
Agreement (WTO ITA):
correct and Statement-II is not the
1. The Agreement requires each correct explanation for Statement-I
participant to eliminate customs (c) Statement-I is correct but Statement-
duties for all the information II is incorrect
technology products specified in the (d) Statement-I is incorrect but
Agreement. Statement-II is correct

RAUSIAS- 0554 16
91. Consider the following statements: How many of the above statements are
1. The Reserve Bank of India (RBI) has correct?
the power to supersede the Board of (a) Only one
Directors of an Urban Cooperative (b) Only two
Bank. (c) All three

2. It is mandatory for the RBI to place an (d) None

Urban Cooperative Bank under

moratorium, before preparing a 94. Which of the following parameters are
monitored to place a bank under the
scheme for restructuring or
Prompt Corrective Action framework?
amalgamation with another bank.
1. The Capital-to-Risk Weighted Assets
3. The Urban Cooperative Banks cannot Ratio
write-off the pending loans from their 2. Return on Assets
balance sheets. 3. Leverage Ratio
How many of the above statements are 4. Gross NPAs
correct? Select the correct answer using the code
(a) Only one given below:
(b) Only two (a) 1 and 2 only

(c) All three (b) 1, 3 and 4 only

(c) 2, 3 and 4 only
(d) None
(d) 1 and 3 only

92. Consider the following statements:

95. Consider the following statements:
1. The Regional Rural Banks cannot 1. The ‘Terms of Trade’ (ToT) for any
operate in the urban areas. sector refer to the movement of the
2. The Regional Rural Banks cannot prices of the products within that
raise capital from sources other than sector, relative to the prices of the
non-sectoral products.
the Government of India, the Sponsor
2. India has been experiencing a
Bank and the concerned State.
declining ToT in the agricultural
Which of the statements given above sector.
is/are correct? Which of the statements given above
(a) 1 only is/are correct?
(b) 2 only (a) 1 only
(c) Both 1 and 2 (b) 2 only
(d) Neither 1 nor 2 (c) Both 1 and 2
(d) Neither 1 nor 2

93. Consider the following statements:

96. Consider the following statements
1. The NBFCs can accept demand and regarding TReDS platform:
fixed deposits. 1. TReDS is an electronic platform for
2. The NBFCs do not form part of the facilitating the financing/discounting
payment and settlement system. of trade receivables to Micro, Small
and Medium Enterprises (MSMEs).
3. The depositors of the NBFCs cannot
2. Only MSMEs can participate as sellers
access the benefits of deposit
in TReDS.
insurance of the DICGC.
3. TReDS platform is regulated by SEBI.

RAUSIAS- 0554 17
 Select the correct answer using the code 99. In how many of the following ways the
given below: government can disinvest from Public
(a) 1 only Sector Enterprises?
(b) 1 and 2 only 1. Initial Public Offering (IPO)
(c) 1 and 3 only 2. Buy back of Shares
(d) 1, 2 and 3 3. Exchange Traded Fund (ETF)
Select the correct answer using the code
97. With reference to PM Vishwakarma given below:
scheme, consider the following (a) Only one
statements: (b) Only two
1. Artisans from specified traditional (c) All three
trades in unorganised sector are (d) None
eligible for the scheme.
2. Benefits are restricted to only one 100. Consider the following statements about
member of the family. the Account Aggregator Platform:
3. The scheme provides unconditional 1. It is a platform that aggregates
credit support to the eligible artisans. individuals’ financial data from
How many of the statements given above various sources.
are correct? 2. All the Financial Information Users
(a) Only one and Providers on the platform must be
(b) Only two registered with the RBI.
(c) All three 3. It enables faster cash flow lending to
(d) None MSMEs.
How many of the statements given above
98. Consider the following statements about are correct?
National Monetization Pipeline(NMP): (a) Only one
1. NMP is intended to attract private (b) Only two
investments in green field (c) All three
infrastructure projects under public (d) None
private partnership.
2. Road sector is envisaged to make
highest contribution to the total NMP
value.
Which of the statements given above
is/are correct?
(a) 1 only
(b) 2 only
(c) Both 1 and 2
(d) Neither 1 nor 2

RAUSIAS- 0554 18
Answers &
Explanations
of

TEST ID: 0554

GENERAL STUDIES (PAPER–I)

Subject: Economy-Social Development

 ANSWERS & EXPLANATIONS OF
Subject: Economy-Social Development
GS Paper-I: (0554)
1. Answer: (b) o Inflation: If the price levels
Explanation: increase, the demand for money
• The value of output is equal to the increases for the increased value
payments made to the factors of of the transactions.
production. Hence, based on the this, o Income: Since the quantum of
the Gross Domestic Product (GDP) at transactions to be made depends on
market prices is the sums of the income, a rise in income will lead to
compensation of the employees (wages, a rise in demand for money.
salaries, contribution to social security o Interest rate: When the interest
etc.), gross operating surplus (rent, rates go up, the people become less
interest, royalty and profit), mixed interested in holding money, since
income and net indirect taxes, which holding money involves an
are the taxes on production and opportunity cost. Therefore, at
imports, less the subsidies on higher interest rates, money
production. The income-side approach demanded comes down.
shows how various factors contribute to • Money is multiplied as a by-product of
the GDP in the production process. credit creation by the commercial banks
• To estimate correct national income by in a fractional reserve banking system.
income method, the following In this process, money multiplication
precautions have to be taken: depends on the currency deposit ratio.
o Transfer payments are not That means, lower the currency held by
included. the public (low money demand), higher
o The income earned through the the multiplication process. Hence,
sale and purchase of second-hand increased demand for money reduces
goods is not included. the money multiplier effect.

o Imputed rent of self-occupied

houses is included. 3. Answer: (a)
o Value of production for self- Explanation:
consumption is included. • Money supply consists of total currency
circulating in the public plus the public
2. Answer: (c) deposits with a commercial bank.
Money is multiplied in the process of
Explanation:
credit creation by the banks in a
• In monetary economics, the demand for
fractional reserve banking system. More
money is the desired holding of
the credit creation by the banks, higher
financial assets in the form of money in
the money multiplication. Hence,
its most liquid form, i.e., cash or bank
money supply increases with
deposits (demand deposits), rather than
increasing public deposits in the
investments in bonds or fixed deposits
commercial banks and reducing the
etc.
reserve ratios [The Cash Reserve
• The demand for money depends upon Ratio (CRR) and the Statutory
three factors: Liquidity Ratio (SLR)].

RAUSIAS- 0554 1
 • However, inter-bank deposits, which to increase the adoption of the e-Re,
a commercial bank holds in other especially among the merchants, given
commercial banks, are not to be that the business–to–customer segment
regarded as part of money supply. accounts for over 85% of total
Money is deemed as something held payments.
by the 'public'. Since inter-bank
deposits are not held by the public, 6. Answer: (b)
they are not considered as part of the
Explanation:
money supply.
• The National Asset Reconstruction
Company Limited (NARCL) has been
4. Answer: (a) incorporated under the Companies Act
Explanation: and has applied to the Reserve Bank of
• The Reserve Bank of India (RBI) India for license as an Asset
announced the ‘Incremental Cash Reconstruction Company (ARC). The
Reserve Ratio’ (ICRR) of 10% on the NARCL has been set up by the banks to
increase in the banks’ net demand and aggregate and consolidate the stressed
time liabilities (NDTL). This measure is assets for their subsequent resolution.
intended to absorb the surplus liquidity The Public Sector Banks (PSBs) will
in the banking system, which has been maintain 51% ownership in the NARCL.
building up in the recent months due to • The NARCL intends to acquire the
several factors, including the return of bad loans through 15% cash and 85%
₹2,000 notes to the banking system. in Security Receipts (SRs).
• This ICRR is imposed in addition to • The resolution mechanisms of this
the existing CRR (Cash Reserve nature, which deal with a backlog of the
Ratio). Non-Performing Assets (NPAs), typically
• The Reserve Bank of India (RBI) does require a backstop from the
not provide any interest over these Government. This imparts credibility
ICRR balances. and provides for contingency buffers.
Hence, the Government of India
5. Answer: (c) guarantee of upto Rs. 30,600 crores will
back the Security Receipts (SRs) issued
Explanation:
by the NARCL. The guarantee will be
• At the merchant’s end, e-Re works on valid for 5 years. The Government
the QR (Quick Response) scanning guarantee will be invoked to cover the
mechanism, just like the UPI (Unified shortfall between the amount realized
Payments Interface), though the QR for from the underlying assets and the face
e-Re and UPI are different. Through value of the SRs issued for that asset.
inter-operability, the intention is to
converge the QRs. The same QR code
7. Answer: (a)
can be used as point-of-sales (POS) for
e-Re and UPI payments. This is at the Explanation:
front-end. • The Liquidity Coverage Ratio (LCR) is
• Efforts are on to converge the payments the proportion of the High Liquid Assets
at the back-end as well. That is, a set aside to meet short-term obligations.
customer making a payment through This ratio is calculated by dividing a
UPI can be credited to the e-Re account bank's High-Quality Liquid Assets by its
of the merchant and vice-versa. total net cash flows, over a 30-day
stress period. Here, the High-Quality
• The intention of this inter-operability is

RAUSIAS- 0554 2
 Liquid Assets include only those with a 9. Answer: (c)
high potential to be converted easily Explanation:
and quickly into cash. • Expansionary fiscal policy is when the
• The assets allowed as the Level High- Government increases the money
Quality Liquid Assets (HQLAs) by the supply in the economy using budgetary
Reserve Bank of India (RBI) for the instruments to either raise spending or
purpose of computing the LCR, inter cut taxes—both having more money to
alia, include: invest for the customers and the
(a) The Government securities in excess companies.
of the mandatory SLR (Statutory • The actions undertaken by the
Liquidity Ratio) requirement; and Government under the expansionary
fiscal policies are reducing tax rates
(b) Within the mandatory SLR
(direct/indirect), increasing
requirement, the Government
government expenditure through
securities to the extent allowed
subsidies, transfer payments, capital
under:
expenditure etc.
(i) The Marginal Standing Facility
• Expansionary fiscal policies are
(MSF) (2% of NDTL); and
generally taken by the Government to
(ii) Facility to Avail Liquidity for boost the economic growth and revive
Liquidity Coverage Ratio the economy during recession.
(FALLCR) [16% of the banks’ Net
Demand and Time Liabilities 10. Answer: (b)
(NDTL)].
Explanation:
• The Fiscal Responsibility and Budget
8. Answer: (c) Management (FRBM) Act (2003)
Explanation: mandates that the General Government
• The IBC (The Insolvency and debt and the Central Government debt
Bankruptcy Code, 2016) framework not to exceed 60 per cent and 40 per
replaced the “debtor in possession” cent of the GDP, respectively, by the
approach with a “creditor in control” end of the FY 2024-25.
regime. Hence, once the resolution • Under Article 293, the States cannot
process starts, the powers of the borrow from outside India, as the
existing Board of Directors are States' borrowing power is specifically
suspended and, during the CIRP limited to within the territory of India.
(Corporate Insolvency and Resolution • Article 292 of the Constitution of
Process), a creditor-approved IP India extends the executive powers
(Insolvency professional) is appointed to to the Union Government to give
manage the CD (Corporate debtor) as a guarantees on the security of the
going concern. The IP functions under Consolidated Fund of India, within
the overall control and supervision of such limits as fixed by the
the Committee of Creditors. Parliament. The limit on giving
guarantee by the Central Government
• However, the insolvency resolution
has been prescribed under the FRBM
process can be initiated by either the Act. As per the Act, no additional
creditor or the debtor by filing an guarantee for any loan on security of
application with the adjudicating the Consolidated Fund of India, more
authority (The National Company than 0.5 per cent of the GDP, should be
Law Tribunal - NCLT). provided in any financial year.

RAUSIAS- 0554 3
11. Answer: (c) • For calculating the fiscal indicators, like
Explanation: the fiscal deficit, and revenue and
• Fiscal deficit refers to the excess of the capital expenditure, only the
Government expenditure over its Consolidated Fund of India (CFI)’s
receipts, exclusive of borrowing. It balance is considered. The borrowings
measures the borrowings made by the made from the Public Account balance
Government in order to cover the gap is not included in the total
between total expenditure and total Government’s borrowings.
receipts.

12. Answer: (b)

Explanation:
• India’s external debt may be classified into ‘sovereign external debt’ (SED) and ‘non-SED’.
• The SED comprises, inter alia, external assistance (from bilateral and multilateral sources)
on the Government Account, investment in the G-secs by the FPIs (The Foreign Portfolio
Investments/Investors), loans from the foreign central banks and international institutions,
and SDR (The Special Drawing Right) allocations by the International Monetary Fund (IMF).
Non-SED comprises trade credit, external commercial borrowings and NRI deposits.
• Thus, the debt raised from the external sources, even in rupee denomination (FPI in G-
secs, Masala Bonds etc.), is considered a part of the external debt.
• US dollar denominated debt remained the largest component of India's external debt, with a
share of 55.5 per cent at end-September, 2022.

RAUSIAS- 0554 4
13. Answer: (b) Capital Account of the budget.
Explanation: Hence, not considered as off-budget
• Off-budget borrowings are the borrowing.
borrowings that are not reflected in the
budget, even though budgetary 14. Answer: (a)
resources will have to be used for their Explanation:
repayment, either in the current or • The Sovereign Gold Bonds (SGBs) are
future periods. Off-budget borrowers the Government securities denominated
may include the Public Sector in grams of gold. The Bonds are issued
Undertakings (PSUs), special purpose in denominations of one gram of gold
vehicles (SPVs), as well as the and in multiples thereof. They are the
Government itself. substitutes for holding physical gold.
• The Governments, at the Union and the The investors have to pay the issue
State levels, undertake off-budget price in cash and the Bonds will be
borrowing in a variety of ways. redeemed in cash on maturity. The
• Some of the common methods are: Bond is issued by the Reserve Bank of
o National Small Savings Fund India, on behalf of the Government of
(NSSF) borrowings: NSSF liabilities, India.
being a part of the Union’s Public • The investors are assured of the
Account, are not reflected in the market value of gold at the time of
fiscal deficit. maturity and periodical interest.
o Special securities issued by the • The quantity of gold, for which the
Government, such as Oil bonds, investor pays, is protected, since he
Recap bonds, which are not reflected receives the ongoing market price at the
in the budget and are treated as time of redemption/premature
extra budgetary liabilities. redemption. The SGB offers a superior
o Borrowings made by the Public alternative to holding gold in physical
Sector Undertakings (PSUs) from the form. The risks and costs of storage are
market to meet the financial eliminated and is free from issues like
requirements for providing services making charges and purity in the case
for which the Government is of gold in jewellery form.
typically responsible. For example, • The interest on the Bonds will be
the borrowings made by the Food taxable as per the provisions of the
Corporation of India (FCI) to meet Income-Tax Act, 1961. However, the
the needs of the NFSA (The National capital gains tax arising on the
Food Security Act) implementation. redemption of the SGB at maturity to
o Special Banking Arrangements an individual has been exempted.
(SBAs): The SBAs refer to the
arrangements made by the 15. Answer: (d)
Government with the banks to Explanation:
facilitate cash and credit flow
• Under the Liberalised Remittance
outside the budgetary appropriation
Scheme (LRS), all resident individuals
to the PSUs.
are allowed to freely remit upto USD
• Ways and Means Advances (WMA): It 2,50,000 per financial year (April –
is a short-term credit facility (upto three March) for any permissible current or
months), provided by the RBI to both capital account transaction or a
the Central and the State Governments combination of both.
to bridge a temporary mismatch in their
• The investor, who has remitted funds
cash flows. These are reflected in the
under the LRS, can retain and

RAUSIAS- 0554 5
 reinvest the income earned from his hour journey of approximately 500
investments made under the Scheme. km.
However, the received / realised / o The gap in costs and revenues, if
unspent / unused foreign exchange, any, will be compensated through
unless reinvested, shall be repatriated. the Viability Gap Funding (VGF). For
this purpose, a Regional
16. Answer: (c) Connectivity Fund (RCF) is created
Explanation: to fund the Scheme through a levy
on certain flights. The States are
• The Ministry of Civil Aviation has
expected to contribute 20 per cent to
launched the Regional Connectivity
the Fund.
Scheme (RCS) - UDAN (Ude Desh ka
Aam Nagrik) in 2016 to enhance o The airlines are selected under the
regional air connectivity from unserved Scheme, based on reverse bidding.
and underserved airports in the country o The airline operators also receive
and making air travel affordable to the other benefits, like tax concessions
masses. on aviation turbine fuel and
concessions on landing charges at
• Features of the Scheme:
the airports.
o Airfare cap at Rs. 2,500 for a one-

17. Answer: (a)

Explanation:
• Female labour market trends as per the Periodic Labour Force Survey (PLFS) (2022-
23):
Year Labour Force Participation Female Labour Force
Rate (LFPR) (Usual Status) Participation Rate (LFPR)
2017-18 36.93% 17.5%
2018-19 37.48% 18.5%
2019-20 40.11% 22.8%
2020-21 41.6% 25%
2021-22 41.3% 24.8%
2022-23 42.4% 27.8%

• Share of various sectors in employment:

RAUSIAS- 0554 6
18. Answer: (b) Government has recently exempted the
Explanation: aircrafts, their engines, airframes and
• Pradhan Mantri Shram Yogi Maan-dhan helicopters from the protection given
(PM- SYM) Yojana is a voluntary and under Section 14 of the IBC.
contributory pension scheme for the
unorganized workers for entry age of 18 20. Answer: (c)
years to 40 years, with monthly income Explanation:
of Rs. 15,000 or less. The worker should • The Foreign Direct Investment (FDI) is
not be covered under any statutory permitted in India under two routes: (i)
social security schemes, such as the The Automatic Route; and (ii) the
National Pension Scheme (NPS), the Government Route.
Employees’ State Insurance Scheme,
• The FDI is prohibited in the following
the Employees’ Provident Fund Scheme,
activities:
and is not an income tax payer.
o Lottery business and gambling.
• The Central Government makes equal
o Chit funds and Nidhi companies.
matching contribution to the
subscriber’s contribution. The o Real estate business or
subscriber will get a fixed minimum construction of farm houses.
monthly pension of Rs. 3,000 (not o Activities not open to private
indexed to any inflation index) after sector investment, like atomic
attaining the age of 60 years. energy, railway operations etc.
• 100% FDI under the Automatic Route
19. Answer: (b) is available for the following:
Explanation: o Construction, operation and
maintenance of suburban rail
• The Cape Town Convention (CTC) is a
corridor projects.
global treaty that guarantees the
rights of the lessors to repossess the o Dedicated freight corridors.
leased high-value equipment, such as o Railway electrification, signalling
aircrafts, engines and helicopters, in systems, terminals infrastructure
case of payment defaults. etc.
• India is a signatory to the Convention,
but not yet ratified, as per which the 21. Answer: (a)
lessors can seek deregistration and Explanation:
export of the aircraft without the The following investments are treated as
consent of the airline when lease the Foreign Direct Investments
payments are defaulted. (FDIs):
• However, according to Section 14 of • Foreign investment in an unlisted
India’s Insolvency and Bankruptcy Code company, irrespective of the threshold
(IBC), 2016, the admission of an limit.
insolvency plea by the National • Foreign investment in the paid-up
Company Law Tribunal (NCLT) results
equity capital of a listed company
in an immediate and complete >10%.
moratorium on the recovery of the
• The inward remittance received by an
assets leased to the debtor. This
Indian company through issuance of
protection, given to the defaulting
Depository Receipts (DRs) and Foreign
companies under the Code, violates the
Currency Convertible Bonds (FCCBs)
Cape Town Convention. Hence, the
are treated as the FDIs.

RAUSIAS- 0554 7
 • Foreign investments in debt Approval Committee, comprising
instruments are not considered as the representatives from the Department
FDIs. Hence, foreign investments in of Economic Affairs and NITI Aayog.
G-secs, irrespective of limit, are not • Funding under the IIPDF Scheme is
considered as FDIs. available to the ‘Project Sponsoring
The following investments are treated as Authorities’ for the ‘Public-Private
the Foreign Portfolio Investments (FPIs): Partnership’ (PPP) projects for the
• Foreign investment in equity, not purpose of meeting the expenses
exceeding 10% of the total paid up incurred by the Project Sponsoring
capital. Authority in respect of feasibility
• Corporate Bonds; Debentures; studies, environment impact studies,
Commercial Papers; Mutual Fund Units financial structuring, legal reviews,
etc. development of the project
• Investment in G-secs. documentation, or for any other
technical support in this regard.

22. Answer: (b)

24. Answer: (a)
Explanation:
Explanation:
• In a bid to develop the corporate debt
market and instil confidence among • The e-National Agriculture Market (e-
the investors, the Securities and NAM) is a pan-India electronic trading
Exchange Board of India (SEBI) has portal which networks the existing
launched the Corporate Debt Market APMC (The Agricultural Produce Market
Development Fund (CDMDF) under Committee) mandis to create a unified
which the mutual funds will have to national market for the agricultural
contribute 25 basis points (bps) of commodities.
the specified debt asset under • It facilitates pan-India trade in the
management to the Fund. agricultural commodities, providing
• The Fund will act as a backstop for the better price discovery through
purchase of investment-grade corporate transparent auction process, based on
debt securities. It will purchase the quality of the produce along with
investment grade corporate bonds from timely online payment. However, it
the mutual fund houses in distress to does not provide guaranteed
help them meet their redemption procurement at the Minimum
requests. The backstop will also prevent Support Price (MSP).
disruption in the Fund raising in the • The Small Farmers’ Agri-business
corporate bond markets during crises. Consortium (SFAC) is the lead agency
• The investment made by the Fund is for implementing e-NAM under the
guaranteed by the Government upto aegis of the Ministry of Agriculture and
INR 30,000 crores from the ‘Guarantee Farmers’ Welfare, the Government of
Scheme for Corporate Debt’. India.
• Two new features were introduced
23. Answer: (d) under this mechanism in 2020 with an
Explanation: aim to decongest the mandis and to
• The India Infrastructure Project make it more convenient for the farmers
Development Fund Scheme (The to sell their produce at the warehouses
IIPDF Scheme) is administered by the and the collection centres set up by the
Farmer Producer Organizations (FPOs).

RAUSIAS- 0554 8
 • The warehouse-based trading module in retail investors also can invest in the
the e-NAM software will facilitate InvITs. The investors receive units for
trading from the premises of the their investment, hence they are also
warehouses, based on the ‘negotiable referred as the ‘unit holders’.
warehouse receipts’ in electronic form • Some part of the investment is used by
(e-NWR), while the other module will the InvITs as loan, while the other
allow the farmers to get access to the e- portion is used as capital. Hence, the
NAM platform from the collection unit holders receive returns in the form
centres of the FPOs. of dividend and interest. Both, the
dividend and the interest are taxed.
25. Answer: (b) • If the investor receives profit upon
Explanation: selling his units, the capital gains tax
• The Swiss Challenge method is a is imposed on any such gain.
bidding process in which an • As per the SEBI regulations, the
interested party presents a bid to the InvITs must invest at least 80% of
auctioneer, who then calls for their assets in the projects that are
counter bids. The auctioneer then completed and revenue-generating.
picks the best of the counter offers This lowers the risk for the investors, as
and checks if the original bidder can this reduces the typical risk associated
better this counter offer. If the with the infrastructure sector, i.e., delay
original bidder does not, then the bid in completion, due to lack of regulatory
goes to the challenger bidder. approvals, poor project management
• The Reserve Bank of India (RBI) allowed etc.
the banks to use this technique for the
selling of their ‘non-performing assets’ 27. Answer: (a)
(NPA) accounts. Explanation:
• The loans (assets) disbursed by the
26. Answer: (a) banks are subjected to various types of
Explanation: risks, like credit risk, market risk or
• The Infrastructure Investment Trusts operational risk. Hence, these assets
(InvITs) are the pooled investment are attached with a risk weight for the
vehicles, similar to the mutual funds, sake of calculating minimum capital
which were introduced to make requirements for the bank.
investment in the infrastructure assets • As per BASEL-III norms, the Reserve
accessible to the private and the retail Bank of India (RBI) mandated all the
investors. The InvITs invest in the long- scheduled commercial banks to
term infrastructure projects, such as maintain a minimum capital of 9% of
roads, gas pipelines, transmission lines, their total risk weight assets.
renewable assets, etc. Capital adequacy ratio = Total capital
• The InvITs are regulated by the (Tier 1 + Tier 2) / Risk weight assets.
Securities and Exchange Board of India • Example of risk weight calculation:
(SEBI). Category Asset value Risk Risk
• The minimum subscription limit for the of asset (Credit weight weighted
InvITs is Rs. 1 lakh. Hence, apart from exposure) (%) asset
the institutional investors, like the
G-sec 2,000 0% 0
banks, insurance companies, pension
funds and sovereign wealth funds, the Credit 1,000 125% 1,250

RAUSIAS- 0554 9
card loan joint initiative of the National Skill
Development Corporation (NSDC) and the
Education 5,000 100% 5,000
Generation India Foundation (GIF), under
loan
the aegis of the Ministry of Skill
Housing 7,000 75% 5,250 Development and Entrepreneurship
loan (MSDE). This project is co-funded by the
Total assets Total risk MSDE [under the SANKALP (Skill
= 15,000 weighted Acquisition and Knowledge Awareness for
asset = Livelihood Promotion) programme] and
11,500 private philanthropy, and aims to train
30,000 youth, 50% of whom will be women
Hence, the risk weighted asset (RWA) trainees. The training will be conducted in
can be more or less than the value of the post-COVID resilient job roles, over a
asset, depending upon the risk attached period of two years. Generation (GIF)’s
to the asset. holistic 7-step skilling methodology will be
utilized to drive higher quality skilling,
28. Answer: (d) improved employment and retention
Explanation: outcomes.
Under this project, the MSDE is working
• Direct monetization of deficit refers to a
with the objective to design a scalable and
situation where the Reserve Bank of
sustainable model of skill development
India (RBI) buys the government
through:
securities directly from the primary
market to fund the Government’s ● Blended Funding: This is a blended
expenses and meet its deficit. financing (1:1 leverage) model,
bringing part funding from the
• The Fiscal Responsibility and Budget
Government and the private sector,
Management Act (The FRBM Act),
thus, making it a unique public-
2003, prohibited this practice, except
private partnership.
only under exceptional
circumstances. An escape clause in ● Outcome-based Approach: The overall
the 2017 amendment of the FRBM objective of the project is to improve
Act permits such direct monetisation job placement and retention
only under special circumstances. outcomes. AMBER, by virtue of its
project design, adopts an outcomes-
• However, the Government can access
based approach, where the
short-term credit from the RBI in the
stakeholders are rewarded for the
form of the ‘Ways and Means Advances’
outcomes.
(WMA). The WMA is a short-term credit
(upto three months) provided by the RBI ● Innovative Methodology: Project
to both the Central and the State AMBER will utilize Generation (GIF)’s
Governments to bridge a temporary unique 7‑step methodology to
mismatch in their cash flows, as laid provide an end-to-end solution for
down in terms of Section 17(5) of the enhancing skill development
RBI Act, 1934. As such, the WMA is outcomes in India.
not a resource to finance the Based on the evidence from the NSDC and
government expenditure. the Generation India Foundation’s
partnership since 2018, a comprehensive
and unique set of activities have been
29. Answer: (b)
designed for the overall project
Explanation:
implementation, which would enhance the
Project AMBER (Accelerated Mission for ‘return on investment’ for the learners and
Better Employment and Retention) is a the employers.

RAUSIAS- 0554 10
30. Answer: (d) each other, or on other market
Explanation: transactions.
The NITI Aayog released, under the NITI Importance of the Reference Rates:
Working Paper series, the Techno- ● They ensure fairness and transparency
Commercial Readiness and Market in interest rate determination, enabling
Maturity Matrix (TCRM Matrix) the borrowers and the lenders to make
framework, a pioneering assessment tool informed decisions.
designed to revolutionize technology The Rise of the Alternative Reference
evaluation, foster innovation and fuel Rates:
entrepreneurship in India. ● In the aftermath of the financial crisis
The Working Paper casts light on the in 2008, concerns arose regarding the
historical evolution of the technology integrity of the reference rates,
assessment frameworks, including the particularly the widely used LIBOR
Technology Readiness Level (TRL); (London Interbank Offer Rate).
Commercialization Readiness Level (CRL); ● As a result, regulatory bodies and
and Market Readiness Level (MRL) scales. industry stakeholders initiated efforts to
By building upon these frameworks' core identify alternative reference rates that
principles, the TCRM Matrix framework are more robust and less prone to
presents an integrated assessment model manipulation.
that offers in-depth insights and actionable
Why is LIBOR being phased-out?
intelligence to the stakeholders at every
● LIBOR is being phased-out due to the
stage of the technology development cycle.
concerns about its reliability and
The Working Paper provides clear
susceptibility to manipulation. The
guidelines for integrating the TCRM Matrix
manipulation scandal exposed
framework within the broader innovation
weaknesses in the calculation and
ecosystem. By doing so, the policymakers,
submission process of LIBOR, eroding
strategists, academicians and the investors
trust in the rate’s accuracy and
can unlock its full potential and drive
credibility.
meaningful change. The adoption of the
● Recognizing the need for a transition,
TCRM Matrix framework necessitates a
the authorities worldwide announced
comprehensive analysis and
the phasing-out of some LIBOR by the
contextualization within the unique
end of 2021 (GBP, JPY and CHF) and
national and sectoral innovation
USD LIBOR was phased out in 2023.
landscapes.
LIBOR was replaced with alternative
reference rates that are based on actual
31. Answer: (a) market transactions and more closely
Explanation: reflect the underlying borrowing costs of
About the Reference Rates: the financial institutions.
● The ‘reference rates’, also known as the Common Alternative Reference Rates:
‘benchmark rates’, are the interest rates Several alternative reference rates have
that serve as a reference point for emerged to replace LIBOR in different
setting the terms of financial contracts. jurisdictions. Some of the commonly
● They represent the cost of borrowing or adopted rates include:
the return on investment for various ● Secured Overnight Financing Rate
financial instruments. (SOFR) in the United States;
● The reference rates are typically based ● Sterling Overnight Index Average
on the rates at which the banks lend to (SONIA) in the United Kingdom;

RAUSIAS- 0554 11
 ● Euro Short-Term Rate (€STR) in the and medium term.
Eurozone; and ● The Fiscal Monitor Report is prepared
● Tokyo Overnight Average Rate (TONA) in twice a year by the IMF’s Fiscal Affairs
Japan. Department. Its projections are based
Each of these rates is designed to address on the same database used for the
the limitations of LIBOR, and provide a World Economic Outlook (WEO) Report
more reliable and representative and the Global Financial Stability
benchmark for financial transactions. Report (GFSR).
Report published by the World Bank:
32. Answer: (d) ● The Global Economic Prospects Report.
Explanation:
About the Index of Eight Core Industries 34. Answer: (a)
(ICI): Explanation:
● The ICI measures the combined and About the PM MITRA Scheme: The PM
individual performance of the MITRA (Mega Integrated Textile Region and
production of eight core industries, viz., Apparel) Scheme was launched in 2021 to
coal, crude oil, natural gas, refinery strengthen the Indian textile industry with
products, fertilizers, steel, cement and a total outlay of ₹4,445 crores for five years.
electricity. ● It aims at enabling the scale of
● The Eight Core Industries comprise operations, reducing logistics costs by
40.27 percent of the weight of items housing the entire value chain at one
included in the Index of Industrial location, attracting investments,
Production (IIP). generating employment and augmenting
Sector-wise weightage in %: export potential.
● Petroleum refinery production: 28.04% ● Vision: 5F Vision: The '5F' formula
● Electricity generation: 19.85% encompasses: Farm to fibre; fibre to
factory; factory to fashion; fashion to
● Steel production: 17.92%
foreign.
● Coal production: 10.33%
● Scope: Set up 7 PM Mega Integrated
● Crude oil production: 8.98%
Textile Region and Apparel (PM
● Natural gas production: 6.88% MITRA) parks in the
● Cement production: 5.37% greenfield/brownfield sites, in
● Fertilizers production: 2.63% partnership with the willing State
Governments.
33. Answer: (c) Nature of Incentives:
Explanation: ● Incentives to the MITRA Parks: The
Reports published by the International Government to provide capital
Monetary Fund (IMF): support of 30% of the project cost in
● The Global Financial Stability Report the greenfield/brownfield parks. The
provides an assessment of the global support would lead to the creation of
core infrastructure, such as ‘developed
financial system and markets, and
addresses emerging market financing in factory sites’; ‘plug and play facility’;
a global context. ‘incubation centres’; ‘roads’; ‘power’;
‘water’; and ‘waste-water system’ etc.
● The World Economic Outlook Report
is published by the IMF, usually twice a ● Incentives to the industries: Upto 3%
year. It presents the analyses of global of the total sales turnover. This is
economic developments during the near only available to those manufacturing

RAUSIAS- 0554 12
 companies who are not availing benefits ● Loans from the State Co-operative
under the Textile PLI scheme (The Banks.
Production-linked Incentive scheme). However, recent amendments to the
Operational Model: The Public-Private Banking Regulation Act in 2020 has
Partnership (PPP) model, based on the enabled the cooperative banks to issue
‘Design-Build-Finance-Operate-Transfer’ shares and bonds with prior approval of
(DBFOT) format. RBI.
The main functions of the banks are:
35. Answer: (c) ● To meet the credit requirements of the
Explanation: member-societies;
The District Central Co-operative Banks ● To perform banking business;
(DCCBs): ● To act as balancing centre for the
● A DCCB is a rural co-operative bank, Primary Agricultural Credit Societies
operating at the district level in various (PACSs) by diverting the surplus funds
parts of India. of some societies to those which face
● It is established to provide banking to shortage of funds;
the rural hinterland for the agricultural ● To undertake non-credit activities;
sector, with the branches primarily ● To maintain close and continuous
established in the rural and the semi- contact with the PACSs, and provide
urban areas. leadership and guidance to them;
● The DCCB provides finance to all the ● To supervise and inspect the PACSs;
co-operative societies in the district, and
conducts activities and provides
● To provide a safe place for the
banking services according to the
investment of the resources of the
provisions of the Co-operative Act and
PACSs.
the Banking Act.
● They act as a link between the primary
credit co-operative society and the State 36. Answer: (c)
Co-operative Bank. Explanation:
● At the district level, the DCCB works as The Good Manufacturing Practice (GMP) is
a banker of the State Government. a system for ensuring that the
Educational institutions; Zilla pharmaceutical products are consistently
Parishads; Panchayat Samitis; Gram produced and controlled according to the
Panchayats; co-operative societies; etc., quality standards.
have their accounts in this bank. ● It is designed to minimise the risks
● All the financial transactions of the co- involved in any pharmaceutical
operative sector are conducted through production that cannot be eliminated
the DCCB. through testing the final product.
The Central Co-operative Banks are located ● The main risks are: Unexpected
at the district headquarters or some contamination of products, causing
prominent town of the district. These banks damage to health or even death;
have a few private individuals also, who incorrect labels on the containers,
provide both finance and management. which could mean that the patients
The Central Co-operative Banks have receive the wrong medicine; and
three sources of funds: insufficient or too much active
● Their own share capital and reserves; ingredient, resulting in ineffective
● Deposits from the public; and treatment or adverse effects.

RAUSIAS- 0554 13
 ● The GMP covers all aspects of ● All financial transactions concerning
production, from the starting materials, foreign securities or exchange cannot be
premises and equipment, to the training carried out without the approval of the
and the personal hygiene of the staff. FEMA. All transactions must be carried
● Detailed, written procedures are out through “authorized persons.”
essential for each process that could ● In the general interest of the public, the
affect the quality of the finished Government of India can restrict an
product. authorized individual from carrying out
● There must be systems to provide foreign exchange deals within the
documented proof that correct Current Account.
procedures are consistently followed at
● It empowers the Reserve Bank of India
each step in the manufacturing process
(RBI) to place restrictions on the
- every time a product is made.
transactions from the Capital Account,
● The World Health Organization (WHO)
even if it is carried out via an
has established detailed guidelines for
authorized individual.
Good Manufacturing Practice (GMP).
Many countries have formulated their ● As per this Act, the Indians residing in
own requirements for the GMP, based India have the permission to conduct a
on the WHO’s GMP. foreign exchange, foreign security
● Others have harmonised their transactions or the right to hold or own
requirements. For example, in the immovable property in a foreign country
Association of South East Asian Nations in case security, property, or currency
(ASEAN), in the European Union and was acquired, or owned when the
through the Pharmaceutical Inspection individual was based outside of the
Convention. country, or when he inherits the
property from an individual staying
37. Answer: (d) outside the country.
Explanation:
About the Foreign Exchange 38. Answer: (d)
Management Act (FEMA), 1999: Explanation:
● The Foreign Exchange Management Act ● The Global Digital Public
(FEMA), 1999, came into force by an Act Infrastructure Repository (GDPIR) is
of the Parliament. This new Act is in a virtual repository of Digital Public
consonance with the frameworks of the Infrastructure (DPI), an initiative of
World Trade Organization (WTO). India, for the use of the G20
● It is a set of regulations that empowers members and beyond. This will
the Reserve Bank of India to pass include India’s DPI, and those
regulations and enables the
adopted and tweaked by other
Government of India to pass rules
nations.
relating to foreign exchange in tune
with the foreign trade policy of India. ● It is aimed at addressing the existing
● The FEMA replaced an Act called the knowledge gap in the choices and
Foreign Exchange Regulation Act methodologies required for the design,
(FERA). construction, deployment and
Main Features of the Foreign Exchange governance of the DPIs.
Management Act, 1999: ● The GDPIR showcases the information
● It gives powers to the Central in a standardized format from the
Government to regulate the flow of countries and the organizations that
payments to and from a person situated have developed the DPIs at scale,
outside the country. incorporating elements, such as

RAUSIAS- 0554 14
 maturity scales, source codes (where 40. Answer: (d)
available) and governance frameworks. Explanation:
● The DPIs from India, incorporated in ● NEST is a rating and certification
the GDPIR, include Aadhaar; Unified initiative for the residential units to
Payments Interface (UPI); DigiLocker; build green homes.
Umang; eSanjeevani; API Setu; Co-WIN; ● It has been launched by the Indian
Government e-marketplace; Diksha; E- Green Building Council (IGBC). The
Hospital; Poshan Tracker; and IGBC is a non-profit organization, that
Ayushman Bharat Digital Mission. is a part of the Confederation of Indian
● The GDPIR is an initiative of the Industry.
Ministry of Electronics and Information ● Aim: To promote sustainable and eco-
Technology. friendly constructions in the
domestic housing sector.
39. Answer: (b) ● It has been developed specifically for
Explanation: the individual home-owners to help
● The World Intellectual Property them reduce energy cost by 20 per
Organization (WIPO) is one of the 15 cent - 30 per cent and reduce water
specialized agencies of the United requirements by 30 per cent - 50 per
Nations. cent.

● It was created to promote and protect

the ‘intellectual property’ (IP) across the 41. Answer: (c)
world by co-operating with the Explanation:
countries, as well as the international ● Recently, the International Crops
organizations. The four types of Research Institute for the Semi-Arid
intellectual property include: trade Tropics (ICRISAT) has joined the One
secrets, trademarks, copyrights and CGIAR Global Initiative.
patents. ● One CGIAR partnership involves the
● The WIPO releases: CGIAR System Organization (A
consortium of International Agricultural
○ The Global Innovation Index that
Research Centres) and 12 One CGIAR
provides an annual ranking of the
Research Centres.
innovation capabilities and
● Aim: To build a unified approach to
performance of the economies
transform food, land and water
around the world.
systems to address the challenges
○ The World Intellectual Property posed by the climate crisis.
Report is published every two years,
● CGIAR is a publicly-funded network of
with each edition focusing on agri-food systems research centres,
specific trends in an area of works for transforming food, land and
intellectual property (IP). water systems in a climate crisis
● The WIPO has 193 members presently. established in 1971.
India became a member of the WIPO in
1975. 42. Answer: (b)
● Headquarters: Geneva (Switzerland). Explanation:
The Global Competitiveness Report (GCR) ● The Payments Infrastructure
was a yearly report published by the World Development Fund (PIDF) scheme is
Economic Forum. an initiative of the Reserve Bank of
India (RBI) to promote the

RAUSIAS- 0554 15
 deployment of digital payment ● Whenever new currency notes are
infrastructure in India. The scheme printed by the RBI, they are first
was launched in 2021, and was initially delivered to the currency chests. These
valid for three years, but it has since currency chests are expected to
been extended till 2025. distribute bank-notes and rupee coins
● The PIDF scheme provides financial to other bank branches in their area of
incentives to the entities that deploy operation. The RBI takes back soiled
digital payment acceptance and mutilated notes from the public
infrastructure, such as the Point of Sale through the currency chests.
(PoS) devices and Quick Response (QR) ● The currency chests should have a
codes. chest balance limit (CBL) of Rs. 1,000
● The scheme shall: crores, subject to ground realities
○ target the creation of payment and reasonable restrictions, at the
acceptance infra in Tier-3 to Tier-6 discretion of the Reserve Bank of
centres; India.
○ cover eligible street vendors, who are ● Around 95% of currency chest in
part of the PM SVANidhi Scheme in India are held by the Public Sector
Tier-1 and Tier-2 centres; and Undertaking (PSU) banks. However,
private sector banks, co-operative
○ cover the north-eastern states, and
banks and foreign banks, and
the UTs of Jammu & Kashmir and
regional rural banks have little share
Ladakh.
in stocking currency on behalf of the
RBI.
43. Answer: (b)
Explanation:
45. Answer: (c)
● The Indian Government has officially
Explanation:
established the National Turmeric
● The Government has amended the
Board under the Ministry of
guidelines pertaining to the anti-money
Commerce and Industry.
laundering standards, by amending the
● Aim: To promote and develop the
Prevention of Money Laundering
turmeric industry and its related
(Maintenance of Records) Rules, or the
products within India.
PMLA Rules.
● The Chairman of the NTB will be
● The amendments include:
appointed by the Central Government.
● Any individual or group holding 10%
● India is the largest producer, consumer
ownership in the client of a ‘reporting
and exporter of turmeric in the world. In
entity’ will now be considered a
the year 2022-23, an area of 3.24 lakh
beneficial owner. Earlier, the
ha was under turmeric cultivation in
requirement was 25%.
India, with a production of 11.61 lakh
○ Reporting entities include banks and
tonnes (over 75% of global turmeric
financial institutions, firms engaged
production).
in real estate and jewellery sectors,
intermediaries in casinos and crypto
44. Answer: (a) or virtual digital assets.
Explanation: ● It becomes mandatory for the banks
● The currency chests are the branches of and the financial institutions to record
selected banks authorized by the financial transactions of the politically
Reserve Bank of India (RBI) to stock exposed persons (PEPs), non-profit
rupee notes and coins.

RAUSIAS- 0554 16
 organizations or NGOs under the ● While the ECBC acts as a national
provisions of the PMLA. standard, the states across India have
○ The PEPs are defined as the the flexibility to modify the Code
"individuals who have been depending on unique regional needs. To
entrusted with prominent public enforce the Code, the states have to
functions by a foreign country, draft rules and notify them as the state
including the heads of States or laws.
Governments, senior politicians, Where do the states stand in the ECBC
senior government or judicial or implementation?
military officers, senior executives of ● Although, 23 out of 28 states have
state-owned corporations and notified the ECBC rules, only 15 states
important political party officials". have notified the rules based on the
● Crypto currency and virtual digital latest ECBC, 2017. These include states
assets (VDAs) have been brought under like Uttar Pradesh, Punjab, Karnataka,
the ambit of the Anti-Money Laundering Andhra Pradesh, Telangana and Kerala.
Law. ● Five states/UTs, viz., Gujarat,
Maharashtra, Jammu & Kashmir,
46. Answer: (b) Ladakh and Manipur, are yet to notify
Explanation: the ECBC rules.
About the Energy Conservation Building
Code (ECBC), 2017: 47. Answer: (d)
● The ECBC sets minimum energy Explanation:
standards for commercial buildings, The Minimum Support Price (MSP) is a
with the objective of enabling energy price at which the government procures
savings of between 25 per cent and certain crops from the farmers to insure
50 per cent in compliant buildings. them against any sharp fall in prices. It is
● The Code is applicable to commercial based on the recommendations of the
buildings, like hospitals, hotels, Commission for Agricultural Costs and
schools, shopping complexes and Prices (CACP).
multiplexes, which have a connected
How is the MSP fixed? Different
load of 100 kW or more, or contract
approaches:
demand of 120 kVA or more.
● A2 Method: Expenditure on various
● It primarily looks at six components of
inputs paid by the farmers, such as
the building design, including envelope
seeds, fertilizers, pesticides etc.
(walls, roofs, windows), lighting
● A2+ FL Method: Expenditure on
systems, HVAC (Heating, ventilation
various inputs + implied cost of family
and air conditioning) systems and
electrical power system, and the labour.
requirements under each of these ● C2 Method: A2+FL+ Implied cost of
components are split between rent of land + all other implied costs.
mandatory and prescriptive. (Recommended by M.S. Swaminathan
● The ECBC is for both new buildings and Committee)
retrofitting existing buildings. Present Method: A2+FL Method (1.5
● The compliant buildings are assigned times the production cost).
one of three tags in ascending order of The present status of the MSP: Presently,
efficiency, namely ECBC, ECBC Plus the MSP does not enjoy statutory
and Super ECBC. recognition. This means that

RAUSIAS- 0554 17
 ● no obligation on the government to (i) Bengal gram (Desi chick pea/desi
purchase all the commodities for which chana);
the MSP is declared; (ii) Pigeon peas (Arhar/toor/red
● no obligation on the government to gram);
pay the MSP to the farmers; and (iii) Green beans (Moong beans);
● No obligation on the private sector to (iv) Chick peas (Kabuli chana);
purchase commodities at the MSP. The (v) Black matpe (Urad/mah/black
private sector can purchase below the gram);
MSP.
(vi) Red kidney beans (Rajma);
Coverage of Commodities:
(vii) Black-eyed peas (Lobiya);
● Cereals: Paddy, wheat, maize, jowar
(viii) Lentils (Masoor); and
(sorghum), bajra (pearl millet), barley
(ix) White peas (Matar).
and ragi.
● Pulses: Gram, tur, moong, urad and India is the largest producer (25% of global
lentil. production), consumer (27% of world
● Oilseeds: Groundnut, consumption) and importer (14%) of pulses
rapeseed/mustard, soybean, sesamum, in the world.
safflower and niger seed. ● Pulses account for around 20 percent of
● Commercial Crops: Copra, cotton, raw the area under food grains and
jute [Sugarcane is covered under the contribute around 7 per cent - 10 per
FRP (Fair and Remunerative Price)]. cent of the total food grains production
in the country.
48. Answer: (d) ● Though pulses are grown in both
Explanation: Kharif and Rabi seasons, Rabi pulses
Pulses are the annual leguminous crops contribute more than 60 per cent of
yielding between one and 12 grains or the total production.
seeds of variable size, shape and colour ● Gram is the most dominant pulse
within a pod, used for both food and feed. having a share of around 40 per cent in
● Besides serving as an important source the total production, followed by
of protein for a large portion of the tur/arhar at 15 per cent to 20 per cent
global population, pulses contribute to and urad/black matpe and moong at
healthy soils and climate change around 8 per cent - 10 per cent each.
mitigation through their nitrogen-fixing ● Madhya Pradesh, Maharashtra,
properties. Rajasthan, Uttar Pradesh and
● The major pulses grown and consumed Karnataka are the top five pulses
in India are: producing states.

49. Answer: (a)

Explanation:
Differences between the Wholesale Price Index (WPI) and the Consumer Price Index (CPI):
Criteria Wholesale Price Index (WPI) Consumer Price Index (CPI)
Level Measures inflation at the Measures inflation at the retail level.
wholesale level.
Calculated by The Office of the Economic The National Statistical Office (The
Advisor (The Ministry of Ministry of Statistics and Programme

RAUSIAS- 0554 18
 Commerce and Industry). Implementation).
Base year 2011-12 2012
Released on 14th of every month. 12th of every month.
Number of items 697 299
covered
Categories and ● Primary articles (22.6%) ● Food and beverages (45.86%)
their respective ● Manufactured products ● Pan, tobacco and intoxicants (2.38%)
weightages (64.2%) ● Clothing and footwear (6.53%)
● Fuel and power (13.2%) ● Housing (10%)
● Fuel and light (6.84%): Electricity, LPG,
kerosene etc. (Does not include petrol
and diesel)
● Miscellaneous: Education, healthcare,
transportation and communication etc.
(28.32%)
Weightage given WPI-Food Index (24%): Food Consumer Food Price Index (CFPI):
to food articles articles from "primary (39%): Out of 12 sub-groups contained in
articles" and "manufactured the 'food and beverages' group, CFPI is
food product". based on ten sub-groups, excluding 'non-
alcoholic beverages' and 'prepared meals,
snacks, sweets etc.’
Impact of increase Less impact on the WPI as Larger impact on the CPI.
in food items compared to the CPI.
Weightage of fuel Included in separate category Weightage (~8%): Included in (a) category
and power of fuel and power (13.2%). of fuel and light and (b) category of
transportation and communication (fuel
for transportation).
Highest weightage Manufactured products Food and beverages (45.86%)
(64.2%)
Services included? No Yes
Indirect taxes No Yes
included?
Targeted by the No Yes. The RBI is required to maintain the
RBI? CPI rate of inflation of 4% with a
deviation of 2%.

50. Answer: (a) the policy interest rate required to

Explanation: achieve the inflation target.
● Under the Reserve Bank of India ● The MPC shall consist of the RBI
(RBI) Act, 1934, the Central Governor as its ex-officio chairperson,
Government is empowered to the Deputy Governor in charge of
constitute a six-member Monetary monetary policy, an officer of the Bank
Policy Committee (MPC) to determine to be nominated by the Central Board,

RAUSIAS- 0554 19
 and three persons to be appointed by Ratio (CRR) and the Statutory
the Central Government. The last Liquidity Ratio (SLR).
category of appointments must be from 2. Supervisory Functions:
the “persons of ability, integrity and ● To ensure that the UCBs conduct
standing, having knowledge and their affairs in the interests of the
experience in the field of economics or depositors and also comply with the
banking or finance or monetary policy”. regulatory framework prescribed by
● The MPC is required to meet at least the Reserve Bank of India, the
four times in a year. The quorum for Department undertakes on-site
the meeting of the MPC is four inspection of these banks, with
members. Each member of the MPC has frequency ranging from one to two
one vote, and in the event of an equality years, depending upon the financial
of votes, the RBI Governor has a second condition/status of the banks.
or casting vote. ● The Department also undertakes off-
site surveillance of the Scheduled
51. Answer: (a) Banks and the Non-Scheduled
Explanation: Banks with a deposit base of Rs.
The Urban Cooperative Banks come 100 crores and above, based on a
under the regulatory ambit of the set of quarterly and annual returns.
Reserve Bank of India (RBI) under two 3. Developmental Function:
laws, namely, the Banking Regulations ● With a view to extending
Act, 1949 and the Banking Laws institutional credit support to tiny
(Application to Co-operative Societies) and cottage units, the Reserve Bank
Act, 1965. of India grants refinance facilities to
The Urban Banks Department of the the Urban Cooperative Banks under
Reserve Bank of India is vested with the the provisions of Section 17 of the
responsibility of regulating and supervising Reserve Bank of India Act, 1934.
the Primary (Urban) Cooperative Banks, The refinance is given at the bank
which are popularly known as the Urban rate.
Cooperative Banks (UCBs). Revised Regulatory Framework for the
While overseeing the activities of the Urban Urban Co-operative Banks (UCBs):
Cooperative Banks, the Urban Banks ● It has been decided to adopt a simple
Department performs three main functions: four-tiered regulatory framework with
regulatory, supervisory and developmental. differentiated regulatory
1. Regulatory Functions: prescriptions, aimed at strengthening
● Licensing of the new Primary the financial soundness of the
(Urban) Cooperative Banks. existing UCBs. Specifically, a minimum
net worth of ₹2 crores for Tier 1 UCBs
● Licensing of the existing Primary
operating in a single district and ₹5
(Urban) Co-operative Banks.
crores for all other UCBs (of all tiers)
● Branch licensing.
has been stipulated. This is expected to
● Statutory provisions.
strengthen the financial resilience of the
● Minimum share capital. banks and enhance their ability to fund
● Maintenance of the Cash Reserve their growth.

RAUSIAS- 0554 20
 ● The minimum CRAR (Capital to Risk- ● Second stage (upto 1 year): Failure of
weighted Assets Ratio) requirement for consultations leads to the formation of
Tier 1 banks is retained at the present the Dispute Panel by the DSB. The
prescription of 9% under the Current report of the Panel can be rejected
Capital Adequacy Framework, based on only through consensus among the
Basel I. For Tier 2, Tier 3 and Tier 4 members of the DSB.
UCBs, while retaining the Current ● Appeal Stage: Either side can appeal a
Capital Adequacy Framework, it has Panel’s ruling. Each appeal is heard by
been decided to revise the minimum three members of a permanent seven-
CRAR to 12%, so as to strengthen their member Appellate Body (AB), set up
capital structure. The increase in the by the Dispute Settlement Body. The
CRAR requirement is reasonable as members of the Appellate Body have
these UCBs do not have full capital four-year terms. The appeal can uphold,
charge for market risk and currently modify or reverse the Panel’s legal
maintain no capital charge for findings and conclusions. The Dispute
operational risk. Settlement Body has to accept or reject
the appeals report and rejection is only
52. Answer: (d) possible by consensus.
Explanation: ○ The members are appointed by the
The current members of OPEC are: Saudi DSB for four-year terms.
Arabia, United Arab Emirates, Kuwait, Iraq, ○ It follows the positive consensus
Iran, Algeria, Angola, Libya, Nigeria, Congo, mechanism.
Equatorial Guinea, Gabon and Venezuela.
54. Answer: (a)
53. Answer: (a) Explanation:
Explanation: ● In April last year, the Reserve Bank of
Understanding the Dispute Settlement India (RBI) conducted a dollar/rupee
Mechanism: (USD/INR) sell-buy swap auction for an
● Settling disputes is the responsibility of amount of $ 5 billion. Under the swap,
the Dispute Settlement Body (DSB), the Central Bank (RBI) sold dollars to
which consists of all WTO members. the banks with an agreement to buy
The General Council is the WTO’s back those dollars at maturity, which in
highest decision-making body and it 2023.
also meets as the DSB. ● This maturity will result in
○ It is essentially a political body and absorption of $5 billion forex swap by
it administers rules and procedure the RBI, which will release Rs.
of the Settlement of Disputes (DSU). 40,000 crore of rupee liquidity into
the banking system.
○ Decisions are taken here by the
reverse consensus method. That is,
the decision is adopted unless there 55. Answer: (b)
is consensus against it. Explanation:
● First stage: Consultation (upto 60 The Government of India has set up a
days) to settle the trade disputes National Cooperative Exports Limited
through conciliation. (NCEL), under the Multi-State

RAUSIAS- 0554 21
 Cooperative Societies (MSCS) Act, 2002. commitment to cyber security excellence,
● All cooperative societies from the level of underscoring the paramount importance of
primary to apex, who are interested in collaboration and knowledge-sharing
exports are eligible to become its among the stakeholders. It served as a
member. unifying platform for over 300 participants,
● It will promote exports through various representing a diverse spectrum of the
activities, including procurement, government agencies, public organizations
storage, processing, marketing, and the private sector, all resolutely
branding, labelling, packaging, committed to the safeguarding of critical
certification, research and development, information infrastructure.
etc., and trading of all types of goods
and services produced by the 57. Answer: (a)
cooperative societies. Explanation:
● The society will also help in arranging About the ECO-mark Scheme: The ECO-
finance, provide technical guidance, mark Scheme was instituted by the
help in training and capacity building, Government of India for the labelling of the
develop and maintain market environment friendly products.
intelligence systems, implement related ● The Scheme is being administered by
government schemes and undertake the Bureau of Indian Standards.
any other such activities which will
● The Scheme covers various product
increase exports from the cooperative
categories, like soaps and detergents,
sector and other related entities.
paints, food items, lubricating oils,
● This society will also help the packing/packaging materials,
cooperatives in getting benefits of architectural paints and powder
various export related schemes and coatings, batteries, electrical and
policies of different electronic goods, food additives, wood
Ministries/Departments of the substitutes, cosmetics, aerosols and
Government of India in a focussed propellants, plastic products, textiles,
manner through the ‘Whole of fire-extinguisher, leather, and coir and
Government Approach'. coir products.
This will help in achieving the goal of ● The presence of the ECO Logo, along
"Sahakar-se-Samriddhi'' through the with the ISI Mark on a product
inclusive growth model of the cooperatives, indicates that the product meets certain
where the members would benefit both by environmental criteria along with the
realization of better prices through export quality requirements, as specified in the
of their goods and services, and also by relevant Indian standard.
dividend distributed out of the surplus
● It is voluntary in nature and helps in
generated by the society.
identifying eco-friendly products in
the market.
56. Answer: (c) The objectives of the ECO-mark Scheme:
Explanation:
● Encourage all citizens to use and buy
The Bharat National Cyber Security products which are environment-
Exercise (Bharat NCX), 2023, represents a friendly.
defining moment in India's unwavering

RAUSIAS- 0554 22
 ● Reward and promote genuine initiatives which are an urgent call for action by all
by the companies to reduce the adverse countries - developed and developing - in a
environmental impact on their global partnership. They recognize that
products. ending poverty and other deprivations must
● Provide incentive for the manufacturers go hand-in-hand with the strategies that
and the importers to control the ill improve health and education, reduce
effects of their products on the inequality and spur economic growth – all
environment while tackling climate change and working
to preserve our oceans and forests.
● Improve the overall quality of the
In 2015, the General Assembly began the
environment and promote sustainable
negotiation process on the post-2015
management of resources in India.
development agenda. The process
Criteria for awarding the ECO-mark: The
culminated in the subsequent adoption
products which get the ECO-mark need to
of the 2030 Agenda for Sustainable
strictly follow the environmental
Development, with 17 SDGs at its core,
requirements and also pass stringent
at the UN Sustainable Development
quality control tests to keep their
Summit in 2015.
certification valid. The following conditions
are evaluated before awarding the Eco-
mark certification to a product: 59. Answer: (b)

● Substantially less potential for pollution Explanation:

in production, usage and disposal; The State Food Safety Index (SFSI) was
released by the Food Safety and Standards
● Recycled, recyclable, made from
Authority of India (FSSAI) on June 7th, on
recycled or biodegradable products;
the occasion of the World Food Safety Day,
● Make significant contribution in saving to foster healthy competition and catalyze
non-renewable resources and natural
positive change in the food safety
resources;
ecosystem throughout the country,
● Production process, including source of ultimately ensuring the provision of safe
raw material; and wholesome food to all residents.
● Likely impact on the environment; This Index is based on the performance of
● Suitability for recycling or packaging; the States/UTs on the following
and parameters:

● Biodegradability. (i) Human resources and institutional

data;
(ii) Compliance;
58. Answer: (a)
(iii) Food testing – Infrastructure and
Explanation:
surveillance;
The 2030 Agenda for Sustainable
(iv) Training and capacity building; and
Development, adopted by all United
Nations Member States in 2015, provides a (v) Consumer empowerment.
shared blueprint for peace and prosperity In the 2023 Index, a new parameter,
for the people and the planet, now and into ‘Improvement in the SFSI rank’, was
the future. At its heart are the 17 added.
Sustainable Development Goals (SDGs),

RAUSIAS- 0554 23
60. Answer: (c)
Explanation:

The India-Middle East-Europe Economic Corridor (IMEC) was announced on the side-lines of
the G20 meeting in New Delhi, when a ‘Memorandum of Understanding’ was signed between the
European Union and seven countries, viz., India, the US, Saudi Arabia, the United Arab
Emirates (UAE), France, Germany and Italy.
According to the information, the Corridor will include a shipping route, connecting Mumbai
and Mundra (Gujarat) with the UAE, and a rail network connecting the Jebel Ali port of the UAE
to Saudi Arabia and Jordan, with the Israeli port of Haifa to reach the shores of the
Mediterranean Sea. Haifa will then be connected by sea to the port of Piraeus in Greece to
eventually be connected to Europe.
The rail and shipping corridor is a part of the Partnership for Global Infrastructure Investment
(PGII), a collaborative effort by the G7 nations to fund infrastructure projects in the developing
nations.
The IMEC will comprise of two separate corridors:
(i) The Eastern Corridor, connecting India with the Arabian Gulf; and
(ii) The Northern Corridor, connecting the Arabian Gulf with Europe.

61. Answer: (a) largest producer of the Areca nut and, at

Explanation: the same time, the largest consumer also.
The Government of India does not Major states cultivating this crop are
provide the Minimum Support Price for Karnataka (40%), Kerala (25%), Assam
the Areca nut. The Areca nut palm is the (20%), Tamil Nadu, Meghalaya and West
source of common chewing nut, popularly Bengal.
known as the betel nut or ‘Supari’. The Areca nut is not a native crop of
In India, it is extensively used by large India. It is generally believed to be native to
sections of the people and is very much Malaysia or the Philippines, where it is
linked with religious practices. India is the grown in many varieties. It is a tropical

RAUSIAS- 0554 24
 crop which grows from the West Indies to • The loans have been divided into three
the East Coast of Africa, and in categories, based on the need for
Bangladesh, China, Sri Lanka and Malaya. finance and stage in maturity of the
business.
62. Answer: (c) • These are: Shishu (loans upto ₹50,000);
Explanation: Kishore (loans above ₹50,000 and upto
The World Customs Organization is the ₹5 lakhs); and Tarun (loans above ₹5
only intergovernmental organization lakhs and upto ₹10 lakhs).
exclusively focused on the customs • The loans under the PMMY are provided
matters. to meet both term loan and working
Its works include: capital components of financing for
(i) Development of the global standards; income generating activities in
(ii) Simplification and harmonization of manufacturing, trading and service
the customs procedures; sectors, including activities allied to
(iii) Trade supply chain security; agriculture, such as poultry, dairy,
(iv) Facilitation of the international trade; beekeeping, etc.

(v) Enhancement of customs enforcement • The rate of interest is decided by the

and compliance activities; lending institutions, in terms of the
(vi) Anti-counterfeiting and piracy RBI (The Reserve Bank of India)
initiatives; guidelines. In case of working capital
facility, interest is charged only on
(vii) Public-private partnerships;
the money held overnight by the
(viii) Integrity promotion; and
borrower.
(ix) Sustainable global customs capacity
building programmes.
64. Answer: (d)
It also maintains the international
harmonized system goods nomenclature Explanation:
and administers the technical aspects of The Asian Development Bank (ADB)
agreements of the WTO agreements on envisions a prosperous, inclusive, resilient
customs valuation and the rules of origin. and sustainable Asia and the Pacific, while
It is headquartered in Brussels (Belgium). sustaining its efforts to eradicate extreme
poverty in the region. Despite the region's
many successes, it remains home to a large
63. Answer: (b)
share of the world's poor: 263 million living
Explanation:
on less than $1.90 a day and 1.1 billion on
The Pradhan Mantri MUDRA Yojana
less than $3.20 a day.
(PMMY) was launched in 2015 to facilitate
The ADB assists its members and partners
easy collateral-free micro credit of upto ₹10
by providing loans, technical assistance,
lakhs to non-corporate, non-farm small
grants and equity investments to promote
and micro entrepreneurs for income
social and economic development.
generating activities. The loans under the
PMMY are provided by the Member Lending The ADB maximizes the development
Institutions (MLIs), i.e., banks, Non- impact of its assistance by facilitating
Banking Financial Companies (NBFCs), policy dialogues, providing advisory
Micro Finance Institutions (MFIs) and other services and mobilizing financial resources
financial intermediaries. through co-financing operations that tap
Features of the Pradhan Mantri MUDRA official, commercial and export credit
Yojana (PMMY): sources.

RAUSIAS- 0554 25
 The five major shareholders of the ADB infrastructure investment.
include Japan and the United States, • The Sagarmala project aspires to reduce
each holding 15.6% of the total shares, logistics costs for EXIM and domestic
followed by the People's Republic of cargo, leading to overall cost savings of
China (6.4%), India (6.3%) and Australia INR 35,000 to 40,000 crores per
(5.8%). annum.
‘Rapid Financing Instrument’ and ‘Rapid • In addition, the Sagarmala project
Credit Facility’ are related to the aspires to reduce carbon emissions
provisions of lending by the from the transportation sector by 12.5
International Monetary Fund. MT/annum.
The New Development Bank (NDB) is a • The concept of “port-led development” is
multilateral development bank central to the Sagarmala vision.
established by the BRICS countries to
• Port-led development focuses on
finance the infrastructure and
logistics intensive industries, where
sustainable development projects in
transportation either represents a high
BRICS, and other emerging
proportion of costs, or timely logistics
economies and developing countries.
are a critical success factor.
The Bharatmala Project:
65. Answer: (d)
• It envisages the development of about
Explanation:
26,000 km length of economic
Logistics Ease Across Different States corridors, which, along with the Golden
(LEADS): Quadrilateral (GQ) and the North-South
• It is released annually by the and the East-West (NS-EW) corridors,
Ministry of Commerce and Industry. are expected to carry majority of the
• LEADS was conceived on the lines of freight traffic on roads.
the Logistics Performance Index (LPI) of • Components under the Bharatmala
the World Bank in 2018 and has Project: Economic corridors; Inter-
evolved over time. While the LPI relies corridors & feeder roads; National
entirely on the perception-based corridor efficiency improvement; Border
surveys, LEADS incorporates both & international connectivity roads;
perception, as well as objectivity, Coastal & port connectivity roads; and
thereby enhancing the robustness Expressways.
and comprehensiveness of this
exercise. 67. Answer: (d)
• LEADS continues to focus on the Explanation:
indicators introduced across 3
Regarding Onion Production:
established pillars: Infrastructure;
• China is the largest onion producer
Services; and Operating & Regulatory
in the world and India comes second in
Environment.
onion production.
• Maharashtra is the leading producer
66. Answer: (c)
of onions in the country.
Explanation:
• Onion production in India has not
The Sagarmala Project:
increased consistently.
• The vision of the Sagarmala project is to
reduce logistics cost for both domestic
and EXIM cargo, with optimized

RAUSIAS- 0554 26
68. Answer: (b)
Explanation:
The Multidimensional Poverty Index (MPI):
• The global Multidimensional Poverty Index (MPI) is an international measure of acute
multidimensional poverty covering over 100 developing countries.

• The MPI assesses poverty at the individual level. If a person is deprived in a third or more
of ten (weighted) indicators, the global MPI identifies him as ‘MPI poor’.

RAUSIAS- 0554 27
 • The global MPI was developed by the Oxford Poverty & Human Development Initiative
(OPHI), with the UN Development Programme (UNDP), for inclusion in the UNDP’s flagship
Human Development Report (HDR) in 2010. It has been published annually by the OPHI and
in the HDRs ever since.
multi-purpose and break-bulk cargo.
69. Answer: (a) • The port is being currently developed in
Explanation: a landlord model with a Public Private
The Mahatma Gandhi National Rural Partnership component on a ‘design,
Employment Guarantee Act (MGNREGA), build, finance, operate and transfer’
2005: (DBFOT) basis.
• It aims to enhance the livelihood
security in the rural areas by 71. Answer: (b)
providing at least 100 days of wage Explanation:
employment in a financial year to at • A demand deposit is the money
least one member of every rural deposited into a bank account that can
household, whose adult members be withdrawn without any prior notice.
volunteer to do unskilled manual • A time deposit is an interest-bearing
work.
bank account that has a pre-set date of
• At least one-third of the beneficiaries maturity. A ‘certificate of deposit’
shall be women, who have registered (CD) is the best-known example. The
and requested for work. money must remain in the account for
• Section 17 of the MGNREGA has the fixed term, in order to earn the
mandated social audit of all works stated interest rate.
executed under the MGNREGA. • Time deposits generally pay a slightly
• Employment is to be provided within 5 higher rate of interest than a regular
km of an applicant's residence, and savings account.
minimum wages are to be paid. • Demand deposit accounts offer
• If work is not provided within 15 days of greater liquidity and ease of access,
applying, the applicants are entitled to as compared to term deposits.
an unemployment allowance. That is, if
the government fails to provide 72. Answer: (c)
employment, it has to provide certain
Explanation:
unemployment allowances to those
Greedflation: In a time of extraordinary
people. Thus, employment under
disruption, increasingly dominant
MGNREGA is a legal entitlement.
corporations are taking the opportunity to
jack up the prices more than they
70. Answer: (c) otherwise could, which is squeezing the
Explanation: consumers and supercharging inflation.
The Vizhinjam International Seaport
Project: 73. Answer: (c)
• The Vizhinjam International Trans- Explanation:
shipment Deepwater Multipurpose The International Monetary Fund (IMF):
Seaport is an ambitious project taken
Voting powers and quotas of the member
up by the Government of Kerala.
countries:
• It is designed primarily to cater
• Each member is assigned a quota,
container trans-shipment, besides
based broadly on its position in the

RAUSIAS- 0554 28
 world economy and the IMF quotas are on incremental sales from the products
also reviewed regularly. manufactured in India, over the base
• Unlike organizations with “one-member, year. The incentives are provided for a
one-vote” constitutions, the voting period of 5 years.
power in the IMF is tied to contributions • The company will have to meet two
(quotas). criteria, viz., incremental investment
• Any change in quota requires approval and incremental sale of manufactured
by 85% of the total voting power and a goods over the base year to be eligible
member’s own quota cannot be changed for the disbursement of the incentive
without its consent. under the scheme for a given year.
• The scheme also invites foreign
74. Answer: (a) companies to set up units in India and
avail benefits.
Explanation:
• The objective of the scheme is to boost
• The tokenization process replaces the
domestic manufacturing in sunrise and
actual card details with an alternate
strategic sectors, curb cheaper imports
code, called a ‘token’. It is a unique
combination of the card’s details, token and reduce import bills, improve cost
requester and the device through which competitiveness of domestically
the request is generated. manufactured goods, and enhance
domestic capacity and exports.
• In this process, instead of saving your
card details on platforms, such as • List of sectors covered under the PLI
Amazon, Flipkart or Zomato, you would Scheme: Mobile manufacturing and
be using the unique token. And it would specified electronics components; Active
be only for that particular merchant Pharmaceuticals Ingredients (APIs);
and that particular device, but it can be Manufacturing of medical devices;
reused. With no card data being saved Textile products; Food products;
with the merchant, the chances of it Telecom and networking products;
being compromised are minimal. Pharmaceuticals drugs; Automobiles;
• As per the Reserve Bank of India (RBI) Auto components; Advance cell
notification, with effect from September chemistry battery; High efficiency solar
30, 2022, the merchants cannot store PV (Photovoltaic) modules; White goods;
customers’ card information. However, Specialty steel; and Drones/drone
the customers can tokenize their cards components.
to continue seamless online
transactions. This facility is optional
76. Answer: (a)
and the merchants can tokenize the
customers card only by receiving Explanation:
explicit consent through additional • The 15th Finance Commission
factor of authentication, like OTP (one- recommended some sector specific
time password). The customers who grants and incentives to the States
have not tokenized their card would which are performance-based. The
have to manually enter full card details criteria include:
for making transactions. o Education sector performance
(Ranking in the Performance Grading
75. Answer: (c) Index - PGI Index).
Explanation: o Agriculture sector reforms (land
• The Production Linked Incentive (PLI) lease reforms, increase in exports,
scheme offers the companies incentives growth in output of oil seeds).

RAUSIAS- 0554 29
 o Power sector reforms (no grants, but 78. Answer: (a)
extra annual borrowing space). Explanation:
o Administrative and governance • The Scheme for Promotion of
reforms (Judiciary reforms, Manufacturing of Electronic
development of Aspirational Components and Semiconductors
Districts). (SPECS) was notified in 2020 and it
provides financial incentive of 25% on
77. Answer: (a) capital expenditure for the identified list
Explanation: of electronic goods that comprise
downstream value chain of the
• As per the Reserve Bank of India (RBI)’s
electronic products, i.e., electronic
Framework for Compromise Settlements
components, semiconductor/display
and Technical Write-offs, the banks
fabrication units, ATMP (Assembly
may enter into compromise settlement
Testing Marking and Packaging) units,
with any borrower, including the wilful
specialized sub-assemblies and capital
defaulters and the fraudulent
goods for the manufacture of the
borrowers, without prejudice to the
aforesaid goods.
criminal proceeding underway against
such borrowers. All such cases of • The scheme is applicable to
compromise settlements should be investments in new units, as well as
vetted by the Management expansion of capacity/modernization
Committee/The Board of Banks. and diversification of the existing
units.
• Compromise settlement is not available
to the borrowers as a matter of right; • The scheme was open to receive
rather it is a discretion to be exercised applications till 31.03.2023., and the
by the lenders, based on their applications received under the scheme
commercial judgement. were appraised on an ongoing basis and
implementation will continue as per the
• Compromise settlement is a negotiated
approvals accorded under the scheme.
arrangement with the borrower to fully
settle the claims of the bank against the
borrower in cash. Such settlement may 79. Answer: (b)
entail some sacrifice of the amount due Explanation:
from the borrower, with corresponding Faster Adoption and Manufacturing of
waiver of legal claims of the banks (Hybrid &) Electric Vehicles in India
against the borrower to that extent. (FAME India) Scheme Phase-II (FAME-
Thus, unlike in a technical write-off, II):
the banks have no legal right of It is a subsidy scheme which was
recovery to the extent of sacrifice introduced by the Government of India in
under this mechanism. 2019, for a period of three years, which was
• Technical write-off refers to the cases further extended for a period of two years
where the non-performing assets upto March 31, 2024.
remain outstanding at the borrowers’ The three major components of the
loan account level, but are written-off scheme are:
(fully or partially) by the bank only for
1) Demand incentives:
accounting purposes, without involving
✓ To create demand for e-vehicles,
any waiver of claims against the
incentives (subsidies) are provided to
borrower.
the manufacturers, who, in turn, pass
on the benefits to the final consumer.

RAUSIAS- 0554 30
 ✓ The scheme is exclusively for public of shares outstanding increases, there
and commercial transport in the is no change to the company's total
segments of electric three-wheelers market capitalization, as the price of
(e-3W), electric four-wheelers (e-4W) each share will split as well.
and electric buses. The benefit of the • A company elects to perform a stock
incentive is available to privately split to intentionally lower the price of a
owned registered electric two- single share, making the company's
wheelers (e-2W). stock more affordable without losing
✓ The incentives are tied to the power of value.
the battery used and the final price of
the vehicle. 82. Answer: (a)
✓ Localized content: To be eligible for Explanation:
the scheme, the manufacturer is • Bond yield refers to the return received
required to fit the vehicle with 50% of by the investor on the capital invested
locally made parts by vehicle value. on a particular bond. The yield of the
2) Establishment of network of charging bond depends on the market value of
stations: 2,500 charging stations to be the bond.
established, so that there will be o If the market value increases above
availability of at least one charging the face value of the bond (the price
station in a grid of 3 km x 3 km. at which it was purchased in the
primary market when it was issued),
3) Publicity and IEC (Information,
then the rate of return on the
Education & Communication)
purchase of the bond in the
activities.
secondary market decreases. This
phenomenon is often known as
80. Answer: (c) softening of bond yields.
Explanation: o On the other hand, if the market
First Loss Default Guarantee (FLDG): value decreases below the face value
of the bond, then the rate of return
• FLDG is a lending model between
on the purchase of bond in the
digital lending fin-techs and their
secondary market increases. This
partner banks and non-banking
phenomenon is known as hardening
finance companies. Under these
of bond yields.
agreements, the fin-tech promises to
• Impact of hardening of bond yield:
compensate the partners upto a pre-
o Loss to the banks: Since the
decided percentage in case the
commercial banks in India hold
customers fail to repay the loans. This
significant size of G-secs, owing to
is in exchange for the partners lending
their SLR (Statutory Liquidity Ratio)
through the fin-tech from their own
requirements and LAF (Liquidity
books. FLDG is also seen as a validation
Adjustment Facility) purposes,
of the fin-tech's underwriting
increasing bond yield, as a rise in
capabilities for the loans disbursed. yields leads to a fall in bond prices
and therefore, these losses have to
81. Answer: (a) be booked by the banks.
Explanation: o Loss to the mutual funds: The
• A stock split is when a company mutual funds holding significant
increases the number of its size of G-secs also face similar
outstanding shares to boost the losses.
stock's liquidity. Although the number o Increased cost of borrowings:

RAUSIAS- 0554 31
 o Higher yield on G-secs would mean 84. Answer: (b)
that the Government will have to Explanation:
offer higher interest rates on fresh • Social Stock Exchange (SSE) is a
borrowings. separate segment of the existing Stock
o The corporates also need to increase Exchange, that can help the social
interest rates on their bonds as a enterprises to raise funds from public
result of increasing bond yields in through the stock exchange
the market. Since the Indian banks mechanism.
follow the interest rates of the long- • Social Stock Exchange identifies the
term G-secs to fix their lending following two forms of social
rates, hardening yields of G-secs enterprises: ‘Not-for-profit organization’
may increase their lending rates as and ‘for-profit social enterprise’.
well. • Not-for-profit organizations are either
o Impact on equity market: As bond charitable societies registered under the
yield rises, the opportunity cost of Societies Registration Act, 1860, or
investing in equities goes up and Section 8 companies under the
therefore, equities become less Companies Act, 2013. Whereas for-
attractive. profit company is any company under
the Companies Act, 2013, operating for
profit and does not include a company
83. Answer: (b) incorporated under Section 8 of the
Explanation: Companies Act, 2013.
▪ Green debt swaps, or Debt-for-nature • A Not-for-Profit organization may
swaps, are the financial transactions raise funds on the Social Stock
in which a portion of a developing Exchange through:
nation's foreign debt is forgiven in o Issuance of Zero Coupon Zero
exchange for local investments in the Principal instruments.
environmental conservation o Donations through the Mutual Fund
measures. Schemes.
▪ Most of the developing nations are • A For-Profit social enterprise may
facing the double whammy of raising raise funds through:
debts and the impact of climate change. o Issue of equity shares.
With mounting sovereign debts, they o Issue of equity shares to the
are not in a position to invest in climate mutual funds.
protection. To deal with this problem, o Issue of debt-instruments.
green debt swaps are being utilized by
• Zero Coupon Zero Principal instruments
some of the poor and developing shall be issued only by a Not-for-profit
nations. organization registered on a Social
▪ Under this, the creditors provide debt Stock Exchange and For-profit
relief in return for a Government organizations cannot issue them.
commitment to invest in climate- • The instruments issued by Not-for-
resilient infrastructure, or protect profit organizations are not available for
biodiversity. Thus these swaps can help trading in the secondary market.
the low-income countries avoid default Whereas the instruments issued by For-
and enable them to redeploy part of profit organizations are available for
their debt repayments to invest in the trading in the secondary market on
measures to tackle climate change. respective platforms of the Stock
Exchanges, on which they are listed.

RAUSIAS- 0554 32
85. Answer: (a) • The IRRA can be invoked by the trading
Explanation: members when they are faced with any
Tying and bundling are common technical glitch at their end, impacting
business practices that consist of the their ability to service the clients. On
combined sale of two or more products invocation, the platform sends a link to
or services. Many digital firms force the the investors to access the IRRA. Once
consumers to buy related services, the investors are authorized to access
which creates asymmetry in pricing and the IRRA platform, the investors can
leads to the removal of competition complete the pending orders and close
from the market. their open positions.
• Tying occurs when a supplier makes the
sale of one product (the tying product) 87. Answer: (a)
conditional upon the purchase of Explanation:
another (the tied product) from the
• The International Monetary Fund (IMF)
supplier (i.e., the tying product is not
provides concessional financial support
sold separately).
to its low-income members through the
• Bundling refers to the situations where
Poverty Reduction and Growth Trust
a package of two or more products is
(PRGT), which has three lending
offered at a discount.
facilities:
For example: Tying ‘WhatsApp pay’ with
o Extended Credit Facility (ECF):
WhatsApp and its seamless integration
Sustained medium-to long-term
with the app as the default payment
engagement in case of protracted
system, thereby gaining unfair advantage
‘Balance of Payments’ problems.
over the other competing payment systems.
o Standby Credit Facility (SCF):
Financing for low-income countries
86. Answer: (d)
with actual or potential short-term
Explanation:
‘Balance of Payments’ and
• India's stock exchanges, including adjustment needs caused by
the BSE (The Bombay Stock domestic or external shocks, or
Exchange) and the NSE (The National policy slippages. It can also be used
Stock Exchange) have jointly
on a precautionary basis during the
developed the Investor Risk
times of increased risk and
Reduction Access (IRRA) platform to
uncertainty.
reduce the risks faced by the
o Rapid Credit Facility (RCF): One-
investors due to certain technical
off disbursement for the low-income
glitches.
countries facing urgent ‘Balance of
• The investors in stock market often face
Payments’ needs.
issues of technical glitches in the
trading members’ systems, as a result • The three facilities have different
of which there would be disruption of maturities and grace periods, and are
trading services and investor currently interest free. The interest rate
complaints. In such instances, the on the RCF financing was set
investors with open positions are at the permanently at zero, while the IMF
risk of non-availability of avenues to reviews interest rates for the ECF and
close their positions. To overcome this the SCF facilities every two years.
problem, this platform has been Currently, the interest rate for these two
designed. facilities has been kept at zero rate.

RAUSIAS- 0554 33
 • Just like in other facilities, the components, as well as integrated
lending facilities to the low-income circuits, saying that they exceeded the
countries under the PRGT are maximum rate committed by India
attached with conditionalities, like under the Agreement.
adopting policies that provide • Recently, a WTO panel ruled against
confidence that the member’s India in this dispute.
‘Balance of Payments’ difficulties will
be resolved within a reasonable
89. Answer: (b)
period.
Explanation:
• Angel tax refers to the income tax
88. Answer: (b)
(30.6 %) imposed on any unlisted
Explanation: company (usually the start-up
• The Information Technology Agreement enterprises) in receipt of investment
(ITA) of the World Trade Organization which is above the fair market value.
(WTO), signed in 1996, aims to Such investment is treated as ‘income
eliminate all import duties and other from other sources’ for the tax purpose.
charges on the information technology This tax was introduced in 2012 in the
products. The ITA requires each Income Tax Act,1961 to plug money
participant to eliminate and bind laundering practices.
customs duties at zero for all products • Earlier, Angel tax provisions were
specified in the Agreement. applicable only for investments received
• The Agreement covers a large number of from the resident investors. However,
high technology products, including the Finance Bill (2023) has extended its
computers, telecommunication applicability to the non-resident
equipment, semi-conductors, semi- investors as well.
conductor manufacturing and testing
equipment, software, scientific
90. Answer: (a)
instruments, as well as most of the
Explanation:
parts and accessories of these products.
• When e-commerce was still at a nascent
• In 2015, it was expanded to cover over
stage, in 1998, the World Trade
200 more products.
Organization (WTO) members agreed to
• However, India did not sign this
continue not imposing customs duties
‘expansion’.
on electronic transmissions. This is
• The tariff elimination is implemented on known as the “moratorium on customs
a ‘Most-favoured Nation’ (MFN) basis. duties” and has been renewed regularly
This means that even the countries that at each Ministerial Conference. One of
have not joined the ITA can benefit from the reasons for implementing the
the trade opportunities generated by the moratorium is that it is technically not
ITA tariff elimination. possible for the customs authorities to
• India joined the Agreement in 1997 collect duties on digitalized products,
and committed to eliminate customs like software.
duty on all the specified products in • This decision covers only electronic
the Agreement. transmissions (i.e., the goods ordered
• In 2019, the EU challenged India’s online, but imported through normal
introduction of import duties of between trade channels are excluded) and
7.5% and 20% for a wide range of IT hence, the bulk of the value of such e-
products, such as mobile phones and commerce is likely to be services.

RAUSIAS- 0554 34
 • As a member of the WTO, India also 92. Answer: (d)
follows this moratorium on customs Explanation:
duties. However, India is opposing • The Regional Rural Banks (RRBs) are
continuation of this moratorium on set up under the Regional Rural Banks
customs duties on e-commerce trade at Act of 1976. These banks are under the
the WTO, as the issue has huge ownership of the Government of India,
implications for the economies of the the Sponsor Bank and the concerned
developing countries. State Government in the ratio of
50:35:15, respectively.
91. Answer: (a) • However, the RRB (Amendment) Act
Explanation: (2015) permits the RRBs to raise
• Recent changes to the Banking capital from other sources, in which
Regulation Act, through an amendment case the combined shareholding of
in 2020, has given the Reserve Bank of the Central Government and the
India (RBI) the power to supersede the Sponsor Bank shall not be less than
Board of Directors of the Cooperative 51%.
Banks, after consultations with the • The RRBs were created to serve the
concerned State Government. Earlier, it rural areas with basic banking and
could issue such directions only to the financial services. However, the RRBs
Multi-State Cooperative Banks. also have urban branches. The area of
• The same amendment has enabled operation is limited to the area
the RBI to prepare a scheme for notified by the Government of India
restructuring or amalgamation with covering, and it covers one or more
another bank, without placing the districts in the State.
bank under moratorium. Placing a
bank under moratorium makes the 93. Answer: (b)
depositors lose confidence in the Explanation:
lender. Thus, the amendment will help
A Non-Banking Financial Company (NBFC)
in allowing a seamless merger of a
is a company registered under the
bank, without the depositors facing any
Companies Act, 1956, engaged in the
difficulty or a run on the bank.
business of loans and advances.
• Recently, the RBI has notified a process
However, there are a few conditions, as
enabling the Cooperative Banks to
given below:
technical write-off, as well as settlement
o The NBFCs cannot accept demand
with the borrowers. This has brought
deposits.
the Cooperative Banks at par with other
Commercial Banks now. o The NBFCs do not form part of the
payment and settlement system, and
• Recently, the RBI has notified a
cannot issue cheques drawn on itself;
framework governing ‘writing-off’ bad
loans and making one-time o The ‘deposit insurance facility’ of the
settlement with the borrowers for all Deposit Insurance and Credit
the banks, including the Urban Guarantee Corporation (DICGC) is not
Cooperative Banks. Now, the available to the depositors of the
Cooperative Banks, through Board- NBFCs, unlike in case of the banks.
approved policies, may provide process
for technical write-off, as well as 94. Answer: (d)
settlement with the borrowers. This has Explanation:
brought the Cooperative Banks at par
• The Prompt Corrective Action (PCA)
with other Commercial Banks now.
framework is a set of guidelines used by

RAUSIAS- 0554 35
 the Reserve Bank of India (RBI) to 96. Answer: (b)
evaluate the banks. The RBI imposes Explanation:
the PCA framework on the banks that TReDS is an electronic bill discounting
show signs of financial stress. platform regulated by the RBI framework
• The PCA framework considers the and a joint venture between SIDBI and NSE
banks to be risky if they fall below to provide MSMEs instant payments for
certain standards on three parameters: outstanding trade receivables.
• Capital; Asset quality and leverage It facilitates the financing / discounting of
measured by the Capital-to-Risk trade receivables of Micro, Small and
Weighted Assets Ratio; and Net NPAs Medium Enterprises (MSMEs) through
(Non-Performing Assets) and Leverage multiple financiers. These receivables can
Ratio, respectively. be due from corporates and other buyers,
• The PCA framework would apply to all including Government Departments and
banks operating in India, including the Public Sector Undertakings (PSUs).
foreign banks operating through Only MSMEs can participate as sellers in
branches or subsidiaries based on TReDS. Corporates, Government
breach of risk thresholds of identified Departments, PSUs and any other entity
indicators. can participate as buyers in TReDS. Banks,
• The PCA framework allows the RBI to NBFC - Factors and other financial
place certain restrictions on a bank, like institutions as permitted by the Reserve
restricting their capital expenditure. Bank of India (RBI), can participate as
financiers in TReDS.
95. Answer: (a) Recently RBI expanded the scope of TReDS
Explanation: to give further impetus to MSMEs:
• The ‘Terms of Trade’ (ToT) for any sector Insurance companies will be permitted to
refer to the movement of the prices of participate as a “fourth participant” on
the products within that sector, relative TReDS, apart from the MSME sellers,
to the prices of the non-sectoral buyers and financiers.
products. The Terms of Trade (ToT) for All entities / institutions eligible to
agriculture refer to the movement of the undertake factoring business under the
prices of the agricultural commodities, Factoring Regulation Act will be permitted
relative to the prices of the non- to participate as financiers in TReDS.
agricultural products. It is calculated by
Secondary market operations will now be
using the GVA (Gross Value Added)
enabled on TReDS platforms. This would
deflator, since it is a measure of
allow financiers to offload their existing
inflation.
portfolio to other financiers within the same
• The ToT for Indian agriculture has TReDS platform, if required.
been increasing for more than a
decade. This means that the
97. Answer: (b)
agricultural commodity prices have
been increasing relatively higher than Explanation:
the non-agricultural commodity prices • PM Vishwakarma, a Central Sector
in the last decade. This is primarily due Scheme, aims to provide end-to-end
to increasing demand for agri-goods in support to artisans and craftspeople
the global market and policy support who work with their hands and tools.
from the government in the form of The Scheme covers artisans and
Minimum Support Price (MSP). craftspeople engaged in 18 trades.

RAUSIAS- 0554 36
 • Eligibility: An artisan or craftsperson benefits:
working with hands and tools and o PM Vishwakarma certificate and ID
engaged in one of the specified family- card
based traditional trades in the o Skill training
unorganized or informal sector, on self-
o Credit support (The credit support is
employment basis, shall be eligible for contingent upon skill training. The
registration under PM Vishwakarma.
disbursal of credit under the
However, the benefits under the Scheme
Scheme is linked with attainment of
shall be restricted to one member of the
specific milestones of training.)
family.
o Incentives for digital transactions
• The scheme providing following
o Marketing support

98. Answer: (b)

Explanation:
• Through National Monetization Program, the government intends to monetize rather than
sell brownfield assets. Brownfield investments are those in which a private company or
investor purchases or leases an existing infrastructure project or production facility to carry
out new production activity. The government’s motto is to monetize these assets, which are
either underutilized or not fully monetized, through private participation.
• NMP estimates aggregate monetisation potential of Rs 6.0 lakh crores through core assets of
the Central Government, over a four-year period, from FY 2022 to FY 2025.

RAUSIAS- 0554 37
99. Answer: (c)
Explanation: 100. Answer: (a)
• Disinvestment refers to sale or Explanation:
liquidation of assets by the government, • An Account Aggregator (AA) is a type of
usually Central and state public sector the RBI regulated entity (with an NBFC-
enterprises, projects, or other fixed
AA license) that helps an individual
assets.
securely and digitally access and share
• Methods of Disinvestment of CPSEs information from one financial
List institution they have an account with to
o Initial Public Offering (IPO) - offer any other regulated financial institution
of shares by an unlisted CPSE or the in the AA network. Data cannot be
Government out of its shareholding shared without the consent of the
or a combination of both to the
individual.
public for subscription for the first
• Account Aggregators (AA) cannot see the
time.
data; they merely take it from one
o Further Public Offering (FPO) -
financial institution to another based on
offer of shares by a listed CPSE or
the Government out of its an individual's direction and consent.
shareholding or a combination of Thus, Contrary to the name, they
both to the public for subscription. cannot 'aggregate' individual’s data.
o Offer for sale (OFS) of shares by • Account Aggregator act as an
Promoters through Stock intermediary by collecting data from
Exchange mechanism - method Financial Information Providers (FIPs)
allows auction of shares on the that hold the customer’s financial data
platform provided by the Stock and share that with Financial
Exchange. Information Users (FIUs) such as
o Institutional Placement Program lending banks\agencies that provide
(IPP) - only Institutions can financial services.
participate in the offering. • Companies registered and regulated by
o CPSE Exchange Traded Fund any of the 4 regulators – The Reserve
(ETF) - Disinvestment through ETF Bank of India (RBI), Securities and
route allows simultaneous sale of Exchange Board of India (SEBI),
Government’s stake in various Insurance Regulatory and Development
CPSEs across diverse sectors Authority (IRDAI), Pension Fund
through single offering. It provides a Regulatory and Development Authority
mechanism for the GoI to monetize (PFRDA) can be a FIP or FIU.
its shareholding in those CPSEs
• Since most MSMEs in India lack
which form part of the ETF basket.
adequate collateral for loan
o Buy back of Shares- Buyback is the
applications, AAs can help lay the
repurchase by a company of its
groundwork for shifting to cash-flow
shares from the existing
shareholders that reduces the based lending from asset-based lending.
number of its shares in the open MSMEs with limited credit histories or
market. So, PSUs would pay the collateral now have better access to
government for the shares it holds, financing, fostering financial inclusion
reducing the number of their shares by addressing the credit gap.
in circulation.

RAUSIAS- 0554 38