UPSC Necessities | Day by day subject-wise quiz : Financial system MCQs on precedence sector lending, windfall tax and extra (Week 84) | UPSC Present Affairs Information

Assertion 1: India registered a 38 per cent surge in imports of completed metal in 2023-24.

Assertion 2: India’s metal trade faces a risk from predatory imports.

Which one of many following is right in respect of the above statements?

(a) Each Assertion 1 and Assertion 2 are right and Assertion 2 is the right rationalization for Assertion 1.

(b) Each Assertion 1 and Assertion 2 are right and Assertion 2 just isn’t the right rationalization for Assertion 1.

(c) Assertion 1 is right however Assertion 2 is wrong.

(d) Assertion 1 is wrong however Assertion 2 is right.

Clarification

— The Indian metal trade has expressed concern over India changing into a web importer of metal in 2023-24, saying it’s a “warning sign” for the nation which strives to turn out to be Atmanirbhar.

— As per the metal ministry’s Joint Plant Committee, India has registered a 38 per cent surge in imports of completed metal to eight.319 million tonnes (MnT) over 6.022 MnT imported throughout the previous 2022-23 fiscal. Therefore, assertion 1 is right.

— “The expansion in predatory imports from China poses a major problem to Atmanirbharta in metal. “The nation’s standing as a web importer is a warning sign to our march in direction of Atmnirbharta (self-reliance),” acknowledged Alok Sahay, secretary normal of the Indian Metal Affiliation (ISA).

— The “lesser responsibility rule” advantages importers. It have to be withdrawn and disclosed instantly in order that China or some other steel-surplus nation doesn’t reap the benefits of India’s rising momentum to advertise their very own metal mills whereas India suffers from a scarcity of metal capability enlargement,” Sahay added.

— Ranjan Dhar, Chief Advertising Officer – ArcelorMittal Nippon Metal, mentioned India’s metal trade faces risk from predatory imports. Limiting metal imports is essential to safeguard investments and guarantee strong GDP progress. Therefore, assertion 2 is right.

Each Assertion 1 and Assertion 2 are right and Assertion 2 is the right rationalization for Assertion 1.

Subsequently, possibility (a) is the right reply

QUESTION 2

Contemplate the next statements:

1. This port is good for the event of a brand new port the place a pure depth of 20 Meters is out there at a distance of about 4.5 nautical miles.

2. Improvement of this port has been conceived underneath the Sagarmala Programme.

3. This port will likely be developed as a deep draught Port to cater to massive containers.

4. The Jawaharlal Nehru Port Authority (JNPA) and Maharashtra Maritime Board will collectively implement this port with a shareholding of 74% and 26% respectively.

The above talked about statements check with:

(a) Tarapur port

(b) Trombay port

(c) Vadhvan Port

(d) Ratnagiri Port

Clarification

— A 32-km lengthy street connecting the proposed Vadhvan Port in Maharashtra’s Palghar district to the nationwide freeway 48 has been authorized by the Union cupboard, the Jawaharlal Nehru Port Authority (JNPA) mentioned.

— The Arabian coast at Vadhvan, situated north of Mumbai, is superb for growing a brand new port on account of its pure depth of 20 metres at a distance of round 4.5 nautical miles.

— The JNPA is constructing the Vadhvan Port. JNPA and the Maharashtra Maritime Board will collectively implement this port, with 74% and 26% possession, respectively.

— The event of a port in Vadhvan was deliberate as a part of the Sagarmala Programme, a authorities initiative to complement port-led growth and coast-line growth in an effort to contribute to India’s progress.

— The objective is to increase and develop Inexperienced Discipline Ports to fulfill the rising visitors demand of Main Ports on the West Coast.

— The brand new Vadhvan port could have a deep draught to accommodate massive container, bulk, and crude vessels.

— A pure water depth of 20 metres is out there at a distance of 10 kilometres, whereas a 15 metre contour is out there at 6 kilometres from the shore, permitting next-generation vessels to journey safely and dock.

Subsequently, possibility (c) is the right reply.

(Different Supply: http://www.jnport.gov.in)

QUESTION 3

The windfall tax is related to:

(a) Iron and metal export

(b) Actual property

(c) Sale of products and providers

(d) Crude oil

Clarification

— Earlier this yr, the federal government minimize windfall tax on domestically produced crude oil to Rs 8,400 per tonne from Rs 9,600 per tonne.

— A windfall tax is a levy imposed by governments on particular industries when financial circumstances permit them to generate considerably higher-than-average income.

— Windfall taxes are primarily utilized in opposition to enterprises within the focused trade which have gained essentially the most from the financial windfall, that are usually commodity-based companies.

— The tax is levied within the type of Particular Extra Excise Obligation (SAED).

— The tax charges are reviewed each fortnight based mostly on common oil costs within the earlier two weeks.

Subsequently, possibility (d) is the right reply.

(Different Supply: http://www.investopedia.com)

QUESTION 4

Contemplate the next actions:

1. Horticulture and allied actions

2. Buy of agricultural implements and equipment

3. Set up of Photo voltaic Agriculture Pumps

4. Buy of land for agricultural functions for marginal farmers.

How most of the above actions are coated underneath precedence sector lending for particular person farmers?

(a) Just one

(b) Solely two

(c) Solely three

(d) All 4

Clarification

— The Reserve Financial institution has expanded the scope of precedence sector lending to incorporate start-ups funding as much as Rs 50 crore, and loans to farmers for set up of photo voltaic crops and compressed biogas crops.

— The Precedence Sector Lending (PSL) pointers have been comprehensively reviewed and revised to align it with rising nationwide priorities and produce sharper concentrate on inclusive growth.

— Loans to particular person farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers, providing banks keep disaggregated data on such loans]. and farmer-owned enterprises engaged straight in agriculture and associated actions comparable to dairy, fishing, animal husbandry, poultry, beekeeping, and sericulture. This can embody:

(i) Crop loans embody these for standard and non-traditional plantations, horticulture, and associated actions.

(ii) Medium and long-term loans for agriculture and allied actions (e.g., purchases of agricultural implements and equipment, in addition to developmental loans for associated companies).

(iii) Loans for pre- and post-harvest duties, comparable to spraying, harvesting, grading, and transporting their very own farm produce.

(iv) Loans made to distressed farmers by non-institutional lenders.

(v) Loans utilizing the Kisan Credit score Card Scheme.

(vi) Small and marginal farmers obtain loans to buy agricultural land.

(vii) Loans may be secured in opposition to agricultural produce (together with warehouse receipts) for as much as 12 months, with a most of as much as ₹75 lakh for NWRs/eNWRs and as much as ₹50 lakh for non-NWR warehouse revenues.

(viii) Farmers can get loans to set up stand-alone photo voltaic agriculture pumps or to solarise grid-connected agriculture pumps.

(ix) Loans to farmers for the set up of solar energy crops on barren/fallow land or on their very own agricultural land.

Subsequently, possibility (d) is the right reply.

(Different Supply: http://www.rbi.org.in)

QUESTION 5

With regards to the Home Systemically Essential Banks (D-SIBs), contemplate the next statements:

1. Systemically Essential Banks (SIBs) are perceived as banks which might be ‘Too Large To Fail (TBTF)’.

2. A D-SIB within the decrease bucket attracts the next capital cost and a D-SIB within the increased bucket attracts a decrease capital cost.

Which of the statements given above is/are right?

(a) 1 solely

(b) 2 solely

(c) Each 1 and a pair of

(d) Neither 1 nor 2

Clarification

— The Reserve Financial institution of India (RBI) retained the State Financial institution of India, HDFC Financial institution and ICICI Financial institution as Home Systemically Essential Banks (D-SIBs).

— Systemically Essential Banks (SIBs) are perceived as banks which might be ‘Too Large To Fail (TBTF)’ and their continued functioning is essential for the uninterrupted availability of important banking providers to the true economic system. Therefore, assertion 1 is right.

— The regulator had issued the framework for coping with D-SIBs in July 2014. Since 2015, the RBI has been disclosing the names of the banks labeled as D-SIBs yearly.

— Whereas SBI and ICICI Financial institution had been designated as D-SIBs by the Reserve Financial institution in 2015 and 2016, HDFC Financial institution was added to the checklist in 2017. The present model relies on knowledge collected from banks as of March 31, 2024.

— Banks are labeled into distinct classes based mostly on their systemic significance rating. The RBI has labeled SBI into bucket 4, HDFC Financial institution in bucket 3, and ICICI Financial institution in bucket 1.

— A D-SIB should meet further widespread fairness necessities relying on the bucket wherein it’s put. The extra capital requirement ranges from 0.20 % to 0.80 % of danger weighted property, relying on which bucket D-SIBs are plotted in.

— The RBI acknowledged that SBI’s further widespread fairness tier 1 (CET1) requirement as a proportion of Danger Weighted Belongings (RWAs) is 0.80%. The extra fund requirement for HDFC Financial institution is 0.40 %, whereas for ICICI Financial institution it’s 0.20 %.

— If a international financial institution with a department in India is a International Systemically Essential Financial institution (G-SIB), it should preserve a further CET1 capital surcharge in India proportionate to its Danger Weighted Belongings (RWAs) in India, i.e., further CET1 buffer prescribed by the house regulator (quantity) multiplied by India RWA as per consolidated world Group books divided by whole consolidated world Group RWA.

— D-SIBs are segregated into totally different buckets based mostly on their systemic significance scores, and topic to loss absorbency capital surcharge in a graded method relying on the buckets, wherein they’re positioned. A D-SIB within the decrease bucket attracts decrease capital cost and a D-SIB in increased bucket attracts the next capital cost. Therefore, assertion 2 just isn’t right.

Subsequently, possibility (a) is the right reply.

Earlier Day by day Topic-Sensible-Quiz

Day by day subject-wise quiz — Polity and Governance (Week 84)

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Day by day subject-wise quiz — Surroundings, Geography, Science and Know-how (Week 84)

Day by day subject-wise quiz — Financial system (Week 83)

Day by day subject-wise quiz – Worldwide Relations (Week 83)

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