Showing posts with label SOCIO ECONOMIC DEVELOPMENTS. Show all posts
Showing posts with label SOCIO ECONOMIC DEVELOPMENTS. Show all posts

Sunday, May 25, 2014

Financial Institutions

Securities Exchange Board of India (SEBI): It is regulatory authority of stock exchanges and protects investors from Fraudulent dealings. It was established in April 1988 and awarded statutory status by Act of parliament in 1992.
Insurance Regulatory & Development Authority (IRDA) : It is apex body formed under Sec.4 of IRDA Act 1999 to  protect the interests of the policyholders to regulate promote and ensure orderly growth of the insurance industry in India
Financial Stability & Development Council : This is the apex financial regulator of our country. Headed by Finance Minister, it coordinates and regulates to four financial regulators of the country i.e. RBI,SEBI,IRDA and PFRDA to ensure that all of them operate and function in harmony to promote the growth and stability of Indian Economy.
Indian Banks Association (IBA) : It is the official association of all the banks operating in India. It acts as a bridge between banks on one hand and government and staff unions on the other. Presetly Mr. K.R. Kamath, CMD of Punjab National Bank is Chairman of IBA.
Non Banking Financial Company (NBFC): These are companies which have functions similar to banking like accepting deposits and making loans. However they do not have license for banking, although they are regulated by RBI.
Deposit Insurance & Credit Guarantee Corp.(DI&CGC) : It is a wholly owned subsidiary of RBI which provides an insurance cover of Rs.1lakh per depositor per bank in case of bank failure.It also provides guarantee of repayment amount in default of small loans given by banks.
Export Credit Guarantee Corporation of India (ECGC):  ECGC is a Govt. body which provides export credit insurance facilities to exporters and banks in India. It encourages Indian exporters by giving them credit insurance covers.
Banking Codes and Standards Board of India: It is a industry watch dog set up by RBI to monitor and assess the compliance with codes and minimum standards of service to individual customers, as prescribed by the RBI.
Credit Information Report: A Credit Information Report is a factual record of a borrower’s credit payment history compiled from information received from different credit grantors. Its purpose is to help credit grantors make informed lending decisions-quickly and objectively.

Monday, October 14, 2013

Increase in Total Broadband Subscriber Base

Total Broadband subscriber base in the country has increased from 15.19 million at the end of June 2013 to 15.24 million at the end of July 2013. This is a monthly growth of 0.33%. Yearly growth in broadband subscribers is 3.79% during the last one year (July 2012 to July 2013). 

As per the latest telecom subscription data (as on 31st July 2013) released by the Telecom Regulatory Authority of India (TRAI), there are 161 Internet Service Providers (ISPs) which are providing broadband services in the country. Out of these, 121 ISPs (having 98.48% market share) have provided broadband subscription data for the month of July 2013, for the rest of the ISPs data from previous month has been retained. Top five ISPs in terms of market share (based on subscriber base) are: BSNL (9.97 million), Bharti Airtel (1.43 million), MTNL (1.10 million), Hathway (0.37 million) and You Broadband (0.32 million). 

People’s Linguistic Survey of India

A new study, the People’s Linguistic Survey of India, says that the official number of languages in India, 122, is far lower than the 780 that it counted and another 100 that its authors suspect exist.

The survey, which was conducted over the past four years by 3,000 volunteers and staff of the Bhasha Research & Publication Centre (“Bhasha” means “language” in Hindi), also concludes that 220 Indian languages have disappeared in the last 50 years, and that another 150 could vanish in the next half century as speakers die and their children fail to learn their ancestral tongues.

The 35,000-page survey was released on 5 Septeber 2013, to commemorate the 125th birth anniversary of Indian philosopher Dr. S. Radhakrishnan, who was also the country’s second President. 

Ganesh Devy, who supervised the project, said this is the first comprehensive survey of Indian languages that anyone has conducted since Irish linguistic scholar George Grierson noted the existence of 364 languages between 1894 and 1928.

There is a major reason for the disparity in the government’s number of languages versus what the survey found: the government does not count languages that fewer than 10,000 people speak. Devy and his volunteers, on the other hand, combed the country to find languages such as Chaimal in Tripura, which is today spoken by just four or five people.

One of the most interesting aspects of the project is Devy’s view of language as a marker of the well being of a community. Languages are being born and dying as they evolve–note how Old English is unintelligible today, and how different is Chaucer’s Middle English from ours–and that is a natural process. But bringing attention to Indian languages with small numbers of speakers, Devy said, is a way of bringing attention to the societies that speak them, along with the well being of their people.

Insurance repository

Insurance repository is a facility that allows you to hold insurance plans in the demat form. As is the case with shares and bonds, which can be held in a demat account with a depository, you can keep your insurance policies in an e-insurance account with an insurance repository. Even if you have policies from multiple insurance companies, they can be stored in the same account. As of now, only life insurance policies and pension plans are being allowed to be held in e-insurance accounts. The facility will eventually be extended to health, car, home and other forms of general insurance. The policyholder has to pay nothing to open an e-insurance account or hold the policies in the demat form. The insurance companies will recoup their costs from the savings in policy issuance and delivery. IRDA has given five companies the status of insurance repositories and provided with a licence that will be valid till July 31, 2014. The five companies are: NSDL Database Management Limited, Central Insurance Repository Limited, SHCIL Projects Limited, CAMS Repository Services Limited and Karvy Insurance Repository Limited.

Monday, September 30, 2013

Rajan Committee’s new methodology to replace ‘special category’ status for devolution of funds to States

The panel set up by the government under the chairmanship of the then Chief Economic Advisor Raghuram Rajan (now RBI governor) has suggested ending the ‘special category’ criteria for providing additional assistance to poorer states.
 Rajan Committee:
The Union Government set up Raghuram Rajan Committee amid demands for “special category” status by Bihar and some other status to get additional financial assistance from the Centre. The Committee was tasked to suggest methods for identifying backwardness of states using a variety of criteria and also to recommend how the criteria may be reflected in future planning and devolution of funds from the central government to the states.
Key recommendations of the Rajan Committee:
The Rajan Committee has made two key recommendations for devolution of funds to states. They are:
a) A new methodology based on a ‘Multi Dimensional Index (MDI)’.
Depending on the scores of the 28 states on the MDI, they will be split into 3 categories:
  1. Least developed
  2. Less developed
  3. Relatively developed
b) Each state should get a basic fixed allocation and an additional allocation depending on its development needs and development performance. 
As per the Committee, these two recommendations, along with the allocation methodology, will effectively subsume what is now “Special Category” status.
According to the MDI scores: 
  • Least Developed states: Odisha, Bihar, Madhya Pradesh, Chhattisgarh, Jharkhand, Arunachal Pradesh, Assam, Meghalaya, Uttar Pradesh and Rajasthan.
  • Less Developed statesManipur, West Bengal, Nagaland, Andhra Pradesh, Jammu and Kashmir, Mizoram, Gujarat, Tripura, Karnataka, Sikkim and Himachal Pradesh.
  • Relatively Developed states: Goa, Kerala, Tamil Nadu, Punjab, Maharashtra, Uttrakhand and Haryana.

Monday, September 9, 2013

Indian Economy Practice Questions

1. Which of the following has become the first Regional Rural Bank to issue a debit card in the country? 
(A) Punjab Gramin Bank (B) Punjab National Bank 
(C) Kashi Gomti Samyut Gramin Bank (D) Ahmedabad RRB 
Answer: Kashi Gomti Samyut Gramin Bank 

2. Which of the following statements is/are correct? 
1. Maharashtra ranks first in the length of roadways among various States of the country. 
2. National Highways comprise only about 2 percent of the total length of roads and carry about 40 percent of the total traffic. 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: Both 1 and 2 

3. With reference to Finance Commission which of the following statements is/are correct? 
1. The recommendations of 13th Finance Commission are applicable between the period 2010-15. 
2. Formation of 13th. Finance Commission was delayed due to presidential election. 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: 1 only 

4. National Social Security Fund has been created in order to– 
(A) fund workers of unorganised sector including weavers, rickshaw pullers, bidi makers, etc. 
(B) finance workers of organised sector. 
(C) help create self employment opportunities for unemployed youth. 
(D) to finance self help groups. 
Answer: fund workers of unorganised sector including weavers, rickshaw pullers, bidi makers, etc. 

5. Consider the following statements– 
1. Raising the repo rate will control inflation and rein in inflationary expectation. 
2. Monetary policy operates largely through demand compression in the short run. 
3. Manufacturing sector has emerged as the key driver of growth in the Indian economy. 
Which of the above statements is/are correct? 
(A) 1 and 3 (B) 1 and 2 
(C) 2 and 3 (D) All of these 
Answer: 1 and 2 

6. Which of the following is/are the major contributory factor(s) to high inflation related to current Indian economic scenario? 
(A) Higher primary articles prices such as vegetables, eggs, meat and fish. 
(B) High global commodity prices such as metal and chemical prices. 
(C) High international crude and petroleum prices. 
(D) All of these 
Answer: All of these 

7. Which of following statements stand/s correct on the account of sharp depreciation of ‘Rupee’?
1. Decrease in foreign institutional investor inflows. 
2. Withdrawal of investment by foreign investors because of the economic meltdown in Europe and inflation in emerging market economy. 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: Both 1 and 2 

8. With reference to India’s external debt profile which of the following statements is/are correct? 
(A) There is an overwhelming dominance of long-term borrowings over short-term debt 
(B) External debt to GDP ratio shows that India’s external debt is within the manageable limits, 
(C) Raising sovereign loans on concessional terms with long-term maturities has been given priority, 
(D) All of these 
Answer: All of these 

9. Which of the following does not include monetary policy instruments? 
(A) Repo rate (B) Cash reserve ratio 
(C) Open market operations (D) Foreign direct investment 
Answer: Foreign direct investment 

10. Which of the following is concerned with inequality in distribution of family income? 
(A) Gini Multiplier (B) Gini Index 
(C) Lorenz Curve (D) Laffer Curve 
Answer: Gini Index 

11. The thrust of National Rural Health Mission (NRHM) is on– 
(A) establishing a fully functional, community-owned decentralised health delivery system. 
(B) providing accessible, affordable and accountable quality health services to all. 
(C) functional health system at the district level.
(D) institutional integration with the fragmented health sector. 
Answer: establishing a fully functional, community-owned decentralised health delivery system. 

12. Consider the following statements with reference to National Rural Livelihood Mission (NRLM)– 
1. National Rural Livelihood Mission has been launched with the aim to eliminate poverty in rural areas. 
2. Under NRLM, self-help groups will be constituted in the form of federation to provide self-employment opportunities to the rural people. 
Which of the above statements is/are correct? 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: Both 1 and 2 

13. Which of the following does not lead to increase in foreign exchange reserves? 
1. Devaluation of Rupee. 
2. Increased foreign investment. 
3. Supply of dollar by Central Bank. 
4. Availability of loans from international institutions. 
(A) 1 and 2 only (B) 2, 3 and 4 
(C) 1, 2 and 4 (D) All of these 
Answer: 1, 2 and 4 

14. Consider the following statements– 
1. A flexible external commercial borrowing (ECB) policy was an important reason why India emerged largely unscathed from the global economic crisis. 
2. The liberalisation of ECB policy has to keep in view the need to maintain sustainable level of external debt ratios. 
Which of the above statements is/are incorrect? 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: 1 only 

15. Which of the following countries signed a Comprehensive Economic Partnership Agreement (CEPA) with India in 2011? 
(A) Japan (B) Malaysia 
(C) Canada (D) Australia 
Answer: Japan 

16. Which of the following consists of major water-polluting industries? 
1. Fertilisers 2. Refineries 3. Pulp & paper 
4. Plastic 5. Thermal 
(A) 1, 2 and 3 only (B) 2, 3 and 4 
(C) 4 and 5 only (D) All of these 
Answer: 1, 2 and 3 only 

17. Which of the following emissions are considered as Green House gas emissions under Kyoto Protocol mechanism? 
1. Carbon dioxide (CO2) 2. Methane (CH4
3. Nitrous oxide (N2O) 4. Hydrofluorocarbons (HFCs) 
5. Perfluorocarbons (PFCs) 
(A) 1, 2 and 3 only (B) 2, 3 and 4 only 
(C) 1, 2, 3 and 4 (D) All of these 
Answer: All of these 

18. Consider the following statements– 
1. Census 2011 is the 15th census of India since 1872. 
2. Census 2011 was conducted in two phases. 
Which of these statements is/are correct? 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: Both 1 and 2 

19. Which of the following statements is/are correct? 
1. ‘Customs Duty’ revenue earned by the Union Government is not distributed to the States. 
2. ‘Commodity Exchanges’ market is independently regulated by Forward Market Commissions. 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: Both 1 and 2 

20. Select the correct statement(s): 
1. National Rural Development Institute is situated at Hyderabad. 
2. The headquarter of SIDBI is located in Lucknow. 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: Both 1 and 2

Indian Economy Practice MCQs

1. Child sex ratio in the age group 0-6 years as per provisional Census 2011 report is– 
(A) 921 (B) 925 
(C) 914 (D) 920 
Answer: 914 

2. Consider the following statements– 
1. Indian Railways is the second largest rail network in the world under a single management. 
2. In Indian Railways, about 50% of the total track km has been electrified. 
Which of the above statements is/are correct? 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2
Answer: 1 only 

3. An ‘Innovation fund’ of Rs. 5,000 crore has been planned by the government with an aim to– 
(A) promote research and development in defence sector. 
(B) promote new talents and their innovation tendencies. 
(C) finance the promotional activities to attract foreign direct investment. 
(D) promote the development of new generation satellites. 
Answer: promote new talents and their innovation tendencies.

4. With reference to Manufacturing consider the following statements– 
1. Manufacturing occupies an unusually large weight (65 percent), relative to its share in national output. 
2. It has an exaggerated bearing on inflation measurement in India. 
Which of the above statements is/are correct? 
(A) 1 only (B) 2 only
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: Both 1 and 2 

5. With reference to growth in Indian economy which of the following statements is/are correct? 
1. The long-term growth rate of the agriculture sector over the last 60 years has been 2.7 percent.
2. Industrial sector registered a higher growth rate than the services sector ever since Independence. 
3. Services sector accounts for highest share of sectoral composition of GDP followed by Industry and Agriculture. 
(A) 1 and 3 (B) 2 and 3 
(C) 1 and 2 (D) All of these 
Answer: 1 and 3 

6. Scheduled Commercial Banks are allowed to borrow at their own discretion using– 
(A) Net demand and time liabilities (B) Marginal standing facility 
(C) Open market operation (D) None of these 
Answer: Marginal standing facility 

7. Which of the following does not mainly consist of Portfolio Investment? 
(A) FII investment (B) American depository receipts (ADRs) 
(C) Global depository receipts (GDRs) (D) None of these 
Answer: None of these 

8. Which of the following does not contribute to sustainable development? 
(A) Improvement of economic well being with social justice. 
(B) Restrained use of, natural resources. 
(C) Protection of interests of future generations. 
(D) None of these 
Answer: None of these 

9. Which Committee set up by RBI has the mandate to study issues and concerns in the micro-finance sector? 
(A) Y. H. Malegam Committee (B) J. J. Irani Committee 
(C) Mashelkar Committee (D) None of these 
Answer: Y. H. Malegam Committee 

10. A state of economy where aggregate demand is greater than the total supply of goods and services is called– 
(A) Repressed-inflation (B) Reflation 
(C) Deflation (D) Demand pull-inflation 
Answer: Repressed-inflation 

11. Which of the following-forms a major innovation of National Rural Health Mission? 
(A) Creation of a cadre of Accredited Social Health Activists (ASHA). 
(B) Improvised hospital care. 
(C) Decentralisation at district level arid effective utilisation of resources through NGOs and community. 
(D) All of these 
Answer: All of these 

12. Which of the following forms an important component of the foreign exchange reserves of the country? 
(A) Foreign exchange assets of RBI (B) Gold reserves of RBI 
(C) SDR holdings of the Government (D) All of these 
Answer: All of these 

13. According to World Bank’s “Global Development Finance, 2012” report, India is the fifth most indebted country, after China, the Russian Federation, Brazil and– 
(A) Turkey (B) Indonesia 
(C) United States of America (D) Greece 
Answer: Turkey 

14. Portfolio Investment consists of the following–
1. Foreign direct investment 2. Foreign institutional investment 
3. American depository receipts 4. Global depository receipts 
Select the correct code–
(A) 1 and 2 only (B) 2, 3 and 4 
(C) 1 and 4 (D) 1, 2 and 3 
Answer: 2, 3 and 4 

15. In which group of crops, growth rate in yield levels appears to have plateaued over the last few years? 
(A) Rice and Wheat (B) Pulses and Mustard 
(C) Sugarcane and Oilseeds (D) Coarse cereals and plantation crop 
Answer: Rice and Wheat 

16. Which of the following forms part of National Manufacturing Policy? 
1. Provision for National Investment and Manufacturing Zones (NIMZs). 
2. Create appropriate skill sets among the rural migrant and urban poor for their easy absorption in manufacturing. 
3. Enable manufacturing to contribute at least 25% of GDP by 2022. 
(A) 1 only (B) 2 only 
(C) 1 and 2 (D) All of these 
Answer: All of these 

17. Consider the following statements with regard to Environmental Performance Index– 
1. India’s Environmental Performance Index rank is 122 out of 132 countries. 
2. India’s performance is better on protection of its forests and fisheries. 
(A) 1 only (B) 2 only 
(C) Both 1 and 2 (D) Neither 1 nor 2 
Answer: Both 1 and 2 

18. Which of the following States has formed ‘Innovation Council’ based on the lines of National Innovation Council? 
(A) Bihar (B) Haryana 
(C) Karnataka (D) West Bengal 
Answer: Haryana 

19. ‘Stagflation’ indicates– 
(A) Inflation with growth (B) Deflation with growth 
(C) Inflation with depression (D) Inflation with stagnation 
Answer: Inflation with depression 

20. Which group of labour comes under the provision of Aam Admi Yojana? 
(A) All labour in rural areas 
(B) Only labour of urban region 
(C) All landless labour living below poverty line in rural areas 
(D) None of these
Answer: All landless labour living below poverty line in rural areas

Thursday, August 22, 2013

NPAs of Public Sector Banks

As per provisional data received from the Reserve Bank of India (RBI), the Gross Non-Performing Assets (NPAs) of Public Sector Banks (PSBs) as on 30th June 2013 was Rs. 1,76,009 crore.  The Gross NPAs of PSBs were Rs. 1, 12,489 crore in March 2012 and Rs. 1, 55,890 crore in March, 2013.

Although the Non-Performing Assets (NPAs) of the bank has shown a rising trend, the position is continuously and closely being monitored by the Bank and there is no cause for alarm. The stress on the asset quality is a reflection of the stress in the economy of the country.

The details of recovery made by PSBs through suit filed cases, as available with RBI, are as under:
(Amt. in Rs. Crore)
Period
Suit Filed
Amt Recovered
%age of Recovery
2009-10
47,576
2,403
5.1
2010-11
52,672
2,342
4.4
2011-12
79,117
1,700
2.1
2012-13
97,701
1,905
2.0

Sex Ratio

The Sex Ratio in the country has shown an improvement. As per the Census, sex ratio has increased from 933 females per thousand males in 2001 to 943 females per thousand males in 2011. State/UT-wise details of sex ratio are annexed.
The Government has been exhorting the States and UTs to pay utmost attention for effective implementation of theprovisions of the Pre-Conception & Pre-Natal Diagnostic Technique (Prohibition of Sex Selection) Act, 1994. Recently, on 18.05.2013, the Union Health Minister requested all the Chief Ministers of States and Lt. Governors/ Administrators of UTs, to ensure effective implementation of the provisions of the Act. The Union Health Secretary has also urged the Chief Secretaries and Secretaries (Health & FW) of all States/ UTs, to establish mechanism for monitoring and to take deterrent follow up action for effective implementation of the PC & PNDT Act. In response to these initiatives, State/UT Governments while reaffirming commitment towards strict compliance of the provisions of the Act, have taken a number of initiatives in this direction.

Government has provided funds to the States & UTs for implementation of the Act. Setting up of PNDT cells to monitor implementation of the Act, is one of the activities for which funds are provided to the States/UTs. Details of funds allocated/released and utilized for PNDT activities during each of the last three years are as under:-

Rs. in Lakh
Financial year
Allocation
Utilisation
2010-11
11417.44*
733.98
2011-12
1411.20
597.58
2012-13
1984.97
1078.84

* Allocation includes Innovations/Public Private Partnership/Non-Governmental Organisation of PC & PNDT.

Government has adopted a multi-pronged strategy devising schemes, programmes and awareness generation/advocacy measures to build a positive environment for the girl child through gender sensitive policies, provisions and legislation.

The measures include the following:-

·   The Government has intensified effective implementation of the said Act and amended various provisions of the Rules relating to sealing, seizure and confiscation of unregistered machines and punishment against unregistered clinics. Regulation of use of portable ultrasound equipment only within the registered premises has been notified. Restriction on medical practitioners to conduct ultrasonography at maximum of two ultrasound facilities within a district has been placed. Registration fees have been enhanced. Rules have been amended to provide for advance intimation in change in employees, place, address or equipment.

·  The Central Supervisory Board (CSB) under the PNDT Act has been reconstituted and regular meetings are being held. The 21st meeting of the CSB has recently been held on 23.07.2013.

·  The Ministry of Communication and Information Technology has been requested to block sex selection advertisements on websites.

·  The National Inspection and Monitoring Committee (NIMC) has been reconstituted and inspections of ultrasound diagnostic facilities have been intensified. Inspections have been carried out in many States including Bihar, Chhattisgarh, Delhi, Haryana, Madhya Pradesh, Maharashtra, Odisha, Punjab, Uttarakhand, Rajasthan, Gujarat, Jharkhand, Uttar Pradesh, Himachal Pradesh and Karnataka.

·  The Government is rendering financial support to the States and UTs for operationalisation of PNDT Cells, Capacity Building, Orientation & Sensitisation Workshop, Information, Education and Communication campaigns and for strengthening structures for the implementation of the Act under the National Rural Health Mission(NRHM).

·   States have been advised to focus on Districts/Blocks/Villages with low Child Sex Ratio to ascertain the causes, plan appropriate behaviour change communication campaigns and effectively implement provisions of the PC & PNDT Act.

·  Religious leaders, women achievers etc. are also being involved in the campaign against skewed child sex ratio and discrimination of the girl child.
  

Annexure
State/UT-wise details of sex ratio
Sl. No.
State/UTs
2001
2011

India
933
943
1
Jammu & Kashmir
892
889
2
Himachal Pradesh
968
972
3
Punjab
876
895
4
Chandigarh
777
818
5
Uttarakhand
962
963
6
Haryana
861
879
7
Delhi
821
868
8
Rajasthan
921
928
9
Uttar Pradesh
898
912
10
Bihar
919
918
11
Sikkim
875
890
12
Arunachal Pradesh
893
938
13
Nagaland
900
931
14
Manipur
978
992
15
Mizoram
935
976
16
Tripura
948
960
17
Meghalaya
972
989
18
Assam
935
958
19
West Bengal
934
950
20
Jharkhand
941
949
21
Odisha
972
979
22
Chhattisgarh
989
991
23
Madhya Pradesh
919
931
24
Gujarat
920
919
25
Daman & Diu
710
618
26
Dadra & Nagar Haveli
812
774
27
Maharashtra
922
929
28
Andhra Pradesh
978
993
29
Karnataka
965
973
30
Goa
961
973
31
Lakshadweep
948
947
32
Kerala
1059
1084
33
Tamil Nadu
987
996
34
Puducherry
1001
1037
35
Andaman & Nicobar Islands
846
876