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Daily Prelims Test – 03_February_2022

1. Consider the following statements regarding Retail Direct scheme:

1)   It is formulated to facilitate investment in Government Securities by individual investors.

2)   Non-Resident retail investors eligible to invest in Government Securities under FEMA 1999 are eligible under this scheme.

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: (c) Both 1 and 2

Explanation:

In NEWS: RBI’s Retail Direct Scheme for G-Secs to broaden investor base

●      The recently launched Retail Direct Scheme by the Reserve Bank of India (RBI) will be instrumental in channelising the savings of the middle class, small businessmen and senior citizens directly into risk-free government securities. Hence statement (1) is correct.

●      According to the Survey, a vibrant secondary market provides opportunity to the investors to balance their portfolio as desired.

●      Under the scheme, retail investors can open a Retail Direct Gilt (RDG) account using an online portal through which they can directly invest a minimum of ₹10,000 and maximum of ₹2 crore per security.

●      Retail investors would mean all individuals (natural persons). Non-Resident retail investors eligible to invest in Government Securities under FEMA 1999 are eligible under the scheme. Hence statement (2) is correct.

●      The retail investors can not only place a non-competitive bid in primary issuance of all central and state government securities such as Treasury Bills and bonds but also access the secondary market through Negotiated Dealing System-Order Matching (NDS OM), RBI’s trading system, which was previously accessible only to select financial institutions.

●      Clearing Corporation of India Ltd (CCIL) is authorized by the Reserve Bank of India to act as an aggregator for Primary Issuances and as Receiving Office for Sovereign Gold Bondsfor the Retail Direct Investors. CCIL is also authorized by RBI to operate the NDS OM platform.

Source: https://www.livemint.com/market/rbis-retail-direct-scheme-for-g-secs-to-broaden-investor-base-economic-survey-11643618872767.html

2. In which district Kulik Bird sanctuary is situated?

a)    West Bengal

b)   Tripura

c)    Goa

d)   Andhra Pradesh

Answer: (a) West Bengal

Explanation:

In NEWS: Water bodies of Bengal’s arid regions turn havens for migratory birds

●      During the winter months, migratory birds from the Himalayan and central Asian highlands come to water bodies of south-central Bengal.

●      The rivers of Sunderbans and the Santrgachi Jheel in Howrah and the Kulik Bird Sanctuary are few of the well-known spots where thousands of migratory birds visit every year in winter. Hence option (a) is correct.

●      A survey by the West Bengal Forest Department has revealed that the water bodies of Bankura and adjoining areas, which are considered arid regions of the State, have emerged as new havens for migratory birds.

●      The species of migratory birds recorded in the region are lesser whistling duck, red-crested pochard, common pochard, tufted duck, northern pintail, great crested grebe along with different species of wagtails.

●      It is the second largest bird sanctuary in Asia after Bharatpur bird sanctuary

●      Nearly 133 species of birds were spotted from 20 water bodies in these regions and many of them are migratory.

●      Some of the key water bodies of the region are Mukutmanipur Dam, Kadamdeuli Reservoir, Gangdua Dam and Lalbandh in Bankura district and Saheb Bandh and Futiyari Dam in Purulia district.

●      The species recorded include lesser whistling duck, red-crested pochard, common pochard, tufted duck, northern pintail, great crested grebe and different species of wagtails.

●      The bird presence is an indicator of the ecosystem health of the region.

Source: https://www.thehindu.com/news/national/other-states/water-bodies-of-bengals-arid-regions-turn-havens-for-migratory-birds/article38351032.ece

3. Consider the following statements regarding Central bank digital currency:

1)   It is a legal tender issued by a central bank in a digital form.

2)   The Reserve Bank of India will launch the CBDC.

3)   It is similar to a fiat currency issued in paper.

Which of the above statements is/are correct?

a)   1 and 2 only

b)   2 and 3 only

c)   1 only

d)  1, 2 and 3

Answer: (d) 1, 2 and 3

Explanation:

In NEWS:

Finance Minister Nirmala Sitharaman Tuesday announced the launch of the Digital Rupee — a central bank digital currency (CBDC) — 2022-23 onwards.

Who will launch the CBDC?

●      The Reserve Bank of India will launch the CBDC from the upcoming financial year. Hence statement (2) is correct.

●      This follows the government’s plans to launch the CBDC that will be backed by blockchain technology.

What is a CBDC?

●      CBDC is a legal tender issued by a central bank in a digital form. Hence statement (1) is correct.

●      It is similar to a fiat currency issued in paper and is interchangeable with any other fiat currency. Hence statement (3) is correct.

What is the need for CBDC?

●      According to Investopedia, the goal is to provide users with convenience and security of digital as well as the regulated, reserve-backed circulation of the traditional banking system.

What does this change for citizens?

●      There are several models proposed by technology experts and evangelists on how the Digital Rupee could be transacted but a formal announcement by the Reserve Bank of India will likely detail how the Digital Rupee will be transacted by citizens.

●      One chief difference will be that a Digital Rupee transaction will be instantaneous as opposed to the current digital payment experience.

Source: https://indianexpress.com/article/explained/explained-what-is-the-digital-rupee-announced-by-sitharaman-in-budget-7751109/

4. Consider the following statements regarding Digital India Land Record Modernization Programme:

1)   It was the purpose to digitize and modernize land records and develop a centralized land record management system.

2)   It has major components of Computerization of land records, Survey/resurvey and Computerization of Registration

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: (c) Both 1 and 2

Explanation:

In NEWS: Budget: Govt focus on digitization of land records

●      The Centre has focused on digitisation of land records through its scheme Digital India Land Record Modernisation Programme (DILRMP).

●      According to the Department of Land Records, over 90 per cent of land records have been digitised across 24 states.

Digital India Land Records Modernisation Programme(DILRMP)

●      In 2008, two schemes viz, Computerisation of Land Records (CLR) and Strengthening of Revenue Administration and Updating of Land Records (SRA&ULR) were merged into a modified scheme named DILRMP.

●      It is a Central Sector Scheme that has been extended up to 2020-21 at a total cost of Rs. 950 crores.

●      It attempts to build upon the commonalities that exist in the arena of land records in various States to develop an appropriate Integrated Land Information Management System (ILIMS) across the country.

●      ILIMS integrates all the processes and land records databases with the banks, financial institutions, circle rates, Registration Offices and other sectors.

●      The Department of Land Resources is in charge of its implementation (Ministry of Rural Development).

●      It has 3 major components: Computerization of land records, Survey/resurvey and Computerization of Registration. Hence statement (2) is correct

●      It aims to replace the present deeds registration and presumptive title system with that of conclusive titling with a title guarantee.

●      The digitization of land records will provide tamper-proof evidence of land ownership.

●      It was the purpose to digitize and modernize land records and develop a centralized land record management system. Hence statement (1) is correct.

Source: https://indianexpress.com/article/business/budget/govt-focus-on-digitation-of-land-records-7752326/

5. Recently, the term C-PACE was seen in the news, it is related to which of the following?

a)   Winding-up of bankrupt companies

b)  Share Markets

c)   Cyber security

d)  Solar manufacturing project

Answer: (a) Winding-up of bankrupt companies

Explanation:

In NEWS: Closure process to get shorter

●      The Union Budget 2022-23 has proposed to establish the Centre for Processing Accelerated Corporate Exit (C-PACE) for speedy winding-up of companies. Hence option (a) is correct.

●      Several information technology-based systems have been established for accelerated registration of new companies.

●      Now the Centre for Processing Accelerated Corporate Exit (C-PACE), with process re-engineering, will be established to facilitate and speed up the voluntary winding-up of these companies from the currently required 2 years to less than 6 months.

●      The Budget has also proposed to carry out necessary amendments in the Insolvency & Bankruptcy Code to enhance the efficacy of the resolution process and facilitate cross-border insolvency resolution.

●      The main aim of the Code is resolving corporate debtors in distress.

Source: https://www.thehindu.com/business/closure-process-to-get-shorter/article38361135.ece

6. Consider the following statements regarding BharatNet:

1)   It is a flagship mission implemented by Bharat Broadband Network Ltd.

2)   It aims to provide high-speed digital connectivity of the internet in rural areas at a very affordable price.

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: (c) Both 1 and 2

Explanation:

In NEWS: Union Budget 2022: BharatNet broadband to be ready by 2025, says Nirmala Sitharaman

●      Union finance minister Nirmala Sitharaman announced in her Budget speech that BharatNet broadband will be ready by 2025.

●      She said that BharatNet contracts for laying optical fibre will be awarded through Public-Private Partnership

BharatNet Scheme:

●      BharatNet Scheme has been launched by the government of India under the Digital India program in order to provide high-speed digital connectivity of the internet in rural areas at a very affordable price. Hence statement (2) is correct.

●      BharatNet is a flagship mission implemented by Bharat Broadband Network Ltd. (BBNL). Hence statement (1) is correct.

●      It is a Special Purpose Vehicle (SPV) set up by the Government of India under the Companies Act, 1956 with an authorized capital of Rs 1000 crore.

●      Through this scheme, the citizens in rural and remote areas will get broadband services at affordable prices. Around 2.5 lakh gram panchayats and 6 lakh villages of the country will be covered under this scheme by 2021.

Source: https://www.hindustantimes.com/budget/union-budget-2022-bharatnet-broadband-to-be-ready-by-2025-says-sitharaman-101643697448624.html

7. Consider the following statements regarding PM-DevINE:

1)   It will be implemented through the North-Eastern Council.

2)   It aims to fund infrastructure and social development projects in the North-East.

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: (c) Both 1 and 2

Explanation:

In NEWS: A NEW SCHEME, PRIME MINISTER’S DEVELOPMENT INITIATIVE FOR NORTH EAST ‘PM-DevINE’ ANNOUNCED; Rs. 1500 CRORE ALLOCATED

●      Prime Minister’s Development Initiative for North-East, PM-DevINE was announced by the Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman while presenting the Union Budget 2022-23

PM-DevINE

●      It will be implemented through the North-Eastern Council. Hence statement (1) is correct.

●      An initial allocation of Rs. 1,500 crore will be made for the new scheme. 

●      It will fund infrastructure, in the spirit of PM GatiShakti, and social development projects based on the felt needs of the North-East. Hence statement (3) is correct.

●      This will enable livelihood activities for youth and women, filling the gaps in various sectors.

●      However, it will not be a substitute for existing central or state Schemes. 

●      North-Eastern Council (NEC) is the statutory body established after amending the North-Eastern Council Act, 1971 in the year 2002. It is the nodal agency for economic and social development of 8 North Eastern Region States.

●      The Home Minister is the ex-officio chairperson of the Council. The DoNER Minister is the Vice-Chairman.  The council has Governors and Chief Ministers of all eight northeastern states as its members.

Source: https://pib.gov.in/PressReleasePage.aspx?PRID=1794230

8. Consider the following statements regarding Motion of Thanks:

1)   Generally, three days are allotted for the discussion on the Motion of Thanks.

2)   The Motion of Thanks must be passed in the House.

3)   It is deemed to be a no-confidence motion.

Which of the above statements is/are correct?

a)   1 and 2 only

b)   2 and 3 only

c)   1 only

d)  1, 2 and 3

Answer: (a) 1 and 2 only

Explanation:

In NEWS: Motion of thanks to President’s speech: Rahul Gandhi to be first speaker in LS

●      The President’s speech at the start of the Budget Session usually highlights the government’s achievements over the past year and outlines targets and plans for the future

●      The debate on the motion of thanks will be held for 12 hours and the Union Budget will be debated for 11 hours in Rajya Sabha

Motion of Thanks

●      The President makes a special address (a statement of government policy that has to be approved by the Cabinet) to a joint sitting of both Houses.

●      The address is followed by a motion of thanks moved in each House by ruling party MPs, and this is called ‘Motion of Thanks’.

●      The scope of the discussion on the Motion of Thanks is very wide and members are at liberty to speak on any matter of national or international importance.

●      After the reply of the PM is over, the Members of Parliament vote on this motion of thanks.

●      Generally, three days are allotted for the discussion on the Motion of Thanks. Hence statement (1) is correct.

●      This motion must be passed in both of the houses. A failure to get a motion of thanks passed (which may happen rarely) amounts to defeat of government and leads to collapse of government. Hence statement (2) is correct.

●      This is why the Motion of Thanks is deemed to be a no-confidence motion. However, before such voting, some members may also move amendments to the address. Hence statement (3) is correct.

Source: https://www.hindustantimes.com/india-news/motion-of-thanks-to-president-s-speech-rahul-gandhi-to-be-first-speaker-in-ls-101643771515409.html

9. Consider the following statements regarding Khijadiya Bird Sanctuary:

1)   It has freshwater marshlands, freshwater lakes and salt water marshlands.

2)   It is fed by river Ruparel.

3)   The black – necked storks are found in abundance in the sanctuary.

Which of the above statements is/are correct?

a)   1 and 2 only

b)   2 and 3 only

c)   1 only

d)   1, 2 and 3

Answer: (d) 1, 2 and 3

Explanation:

In NEWS: World Wetlands Day: Sanctuaries in Gujarat, Uttar Pradesh listed as Ramsar sites

●      The Khijadiya Bird Sanctuary near Jamnagar in Gujarat and Bakhira Wildlife Sanctuary in Uttar Pradesh have been listed as Wetlands of International Importance. With this, the total number of Ramsar sites in India goes up to 48.

●      Khijadiya, which is part of the Central Asian Flyway, has become the fourth wetland of Gujarat to get the Ramsar tag.

●      Nalsarovar Bird Sanctuary, Thol Wildlife Sanctuary and Wadhwana wetland are the other Ramsar sites in the state.

●      As one of the important waterbird habitats in North-West India, the Site provides breeding, feeding and roosting grounds for a wide range of resident aquatic and also land-based birds.

●      It provides habitat for over 310 bird species, including 125 waterbirds; over 165,000 individual waterbirds have been counted.

●      Khijadiya Wildlife Sanctuary is a freshwater wetland near the coast of the Gulf of Kutch, was formed following the creation of a bund (dike) in 1920 by the then ruler of the erstwhile princely state of Nawanagar to protect farmlands from saltwater ingress. Hence statement (1) is correct.

●      The sanctuary is now part of Marine National Park, Jamnagar, the first marine national park in the country.

●      It is fed by river Ruparel. Hence statement (2) is correct.

●      The black – necked storks are found in abundance in the sanctuary. Hence statement (1) is correct.

Source: https://indianexpress.com/article/cities/rajkot/international-wetlands-day-sanctuaries-gujarat-up-ramsar-7752917/

10. With reference to the water on the planet Earth, consider the following statements:

1)   The amount of water in the rivers and lakes is more than the amount of groundwater.

2)   The amount of water in polar ice caps and glaciers is more than the amount of groundwater.

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

Answer: (b) 2 only