Insights Ias Questions in Upsc Csp-2019
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INSIGHTS IAS QUESTIONS IN UPSC CSP-2019 Questions from Insights Test Series 2019 + 75 Days Revision Plan UPSC Civil Services (Prelims) Examination - SET D JOIN INSIGHTSIAS TEST SERIES AND STAY AHEAD- CLICK HERE • Questions with Green Colour were covered in our Test Series • Questions with Red Colour were NOT covered. 1. With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements 1. AIIB has more than 80 member nations. 2. India is the largest shareholder in AIIB. 3. AIIB does not have any members from outside Asia. Which of the statements given above is / are correct? (a) 1 only (b) 2 and 3 only (c). 1 and 3 only (d) 1, 2 and 3 Answer: A Justification: S1 AIIB has 97 members and is open to accepting additional members. S2: The allocated shares are based on the size of each member country's economy (calculated using GDP Nominal (60%) and GDP PPP (40%)), whether they are an Asian or Non-Asian Member, and the number of shares determines the fraction of authorized capital in the bank. China is the biggest shareholder followed by India. See https://fas.org/sgp/crs/row/R44754.pdf and https://www.business- standard.com/article/news-ani/india-is-second-largest-shareholder-of-aiib-piyush- goyal-118062400640_1.html WWW.INSIGHTSONINDIA.COM 1 INSIGHTS IAS QUESTIONS IN UPSC CSP-2019 S3: It has members from outside Asia such as Fiji, New Zealand etc. Membership in AIIB is open to members of the International Bank for Reconstruction and Development or the Asian Development Bank. See https://www.aiib.org/en/about- aiib/governance/members-of-bank/index.html Insights Revision Quiz – 2019 - Day 42 16. Consider the following statements 1. Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond. 2. China is the largest shareholder of AIIB, followed by India and Russia. 3. AIIB will be headed by a president who will be elected by board of governors for a term of 5 year and can hold a maximum of two terms. Which of the statements given above is/are correct? (a) 3 only (b) 1 and 3 only (c) 2 only (d) 1, 2 and 3 Solution: D All the above statements are correct. https://www.insightsonindia.com/2019/04/25/test-42-insights-ias-revision-plan- for-prelims-2019-daily-revision-tests-25-april-2019/ Insights Module Test Geography - Question 44 44. Consider the following statements: 1. The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. 2. The Board of Governors consists of one Governor and one Alternate Governor appointed by each member country. 3. AIIB can lend to members beyond Asia if the project delivers a clear benefit to the region. Which of the statements given above is/are correct? (a) 1 and 2 only (b) 2 only (c) 1 and 3 only (d) 1, 2 and 3 Solution: D WWW.INSIGHTSONINDIA.COM 2 INSIGHTS IAS QUESTIONS IN UPSC CSP-2019 The Asian Infrastructure Investment Bank (AIIB) is a multilateral development bank with a mission to improve social and economic outcomes in Asia. Headquartered in Beijing, AIIB began operations in January 2016 and have now grown to 93 approved members worldwide. The Board of Governors consists of one Governor and one Alternate Governor appointed by each member country. Governors and Alternate Governors serve at the pleasure of the appointing member. By investing in sustainable infrastructure and other productive sectors in Asia and beyond, AIIB will better connect people, services and markets that over time will impact the lives of billions and build a better future. Egypt Round II Solar PV Feed- in Tariffs Program is only project of AIIB outside Asia till now. https://www.aiib.org/en/about-aiib/governance/board-governors/index.html# 2. What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently? (a) To lessen the Government of India's perennial burden of fiscal deficit and current account deficit (b) To support the infrastructure projects of Central and State Governments (c) To act as independent regulator in case of applications for loans of Rs. 50 crore or more (d) To aim at faster resolution of stressed assets of Rs. 50 crore or more which are- under consortium lending Answer: D Justification: The inter-creditor agreement is aimed at the resolution of loan accounts with a size of ₹50 crore and above that are under the control of a group of lenders. It is part of the “Sashakt” plan approved by the government to address the problem of resolving bad loans. See https://www.thehindu.com/opinion/editorial/cosmetic- repair/article24506004.ece and https://economictimes.indiatimes.com/industry/banking/finance/banking/56- lenders-to-sign-inter-creditor-agreement-in-a-few-days/articleshow/64940424.cms Insights Prelims Test Series 2019, Test 5 Question 61 Consider the following statements about the Inter-Creditor Agreement (ICA) that was recently seen in news. 1. It is aimed at the resolution of loan accounts with a size of ₹50 crore or less and that are under the control of a group of lenders. WWW.INSIGHTSONINDIA.COM 3 INSIGHTS IAS QUESTIONS IN UPSC CSP-2019 2. It is part of the “Sashakt” plan approved by the government to address the problem of resolving bad loans. 3. The agreement is based on a recommendation by the Deepak Parekh committee that looked into a problem related to the agreement. 4. Consensus between all creditors is a core value of the ICA. Select the correct answer using the codes below. a) 1, 2, 3 and 4 b) 2 only c) None of the above d) 2 and 4 only Solution: b) Justification: Statement 1, 2 and 3: The inter-creditor agreement is aimed at the resolution of loan accounts with a size of ₹50 crore and above that are under the control of a group of lenders. It is part of the “Sashakt” plan approved by the government to address the problem of resolving bad loans. The agreement is based on a recommendation by the Sunil Mehta committee that looked into resolution of stressed assets. Statement 4: The agreement says if 66% of lenders by value agree to a resolution plan, it would be binding on all lenders. The dissenting creditors will, however, have the option to sell their loans to other lenders at a discount of 15% to the liquidation value, or buy the entire portfolio paying 125% of the value agreed under the debt resolution plan by other lenders. Dissenting creditors can also exit by selling their loans to any entity at a price mutually arrived at between the lender and buyer. The agreement has a standstill clause wherein all lenders are barred from enforcing any legal action against the borrower for recovery of dues. Significance of the agreement: The agreement is a “huge step forward” in tackling the bad loan issue as it is drawn up by banks themselves and is a reflection of bankers’ resolve to collectively find a solution to stressed asset mess. Almost the entire banking system and prominent NBFCs like REC, PFC are joining the ICA which has held back fast and effective resolution of stressed assets for decades in the past. 3. The Chairmen of public sector banks are selected by the (a) Banks Board Bureau (b) Reserve Bank of India (c) Union Ministry of Finance (d) Management of concerned bank WWW.INSIGHTSONINDIA.COM 4 INSIGHTS IAS QUESTIONS IN UPSC CSP-2019 Answer: A Justification: The word ‘selection’ is a bit ambiguous since it can be interpreted as either appointment or recommendation for appointment. The BBB’s current mandate is to recommend the selection and appointment of wholetime Directors (WTDs) and non-executive Chairmen(NEC); We can get a clarity on the word selection through the Union Finance Ministers’ Budget Speech of February 2015 (Para 81), “In order to improve the Governance of Public Sector banks, the Government intends to set up an autonomous Bank Board Bureau. The Bureau will search and select heads of Public Sector banks and help them in developing differentiated strategies”, see http://banksboardbureau.org.in/upload/PDF/Chapter1_190318.pdf , the very first page in the PDF. Once recommended, the government, i.e. the Appointments Committee of the Cabinet (ACC) (not the RBI or a single ministry like the Ministry of Finance) has the final say in the appointment. So, B and C cannot be the answer. A is the answer. See https://www.thehindubusinessline.com/money-and-banking/sunil-mehta- appointed-nonexecutive-chairman-of-pnb/article9548646.ece Insights Prelims Test Series 2019, Test 6, Q 94 Q94. With reference to the Banks Board Bureau (BBB) setup in 2016, consider the following statements. 1. It was set up as a body under the RBI on the recommendations of the RBI appointed Nayak Committee. 2. It was the part of Indradhanush Plan of government. 3. Its broad agenda was to improve governance at state-owned banks by assisting banks with capital-raising plans as well as strategies to deal with bad loans. 4. Its mandate involved advising the government on top-level bank appointments. Select the correct answer using the codes below. a) 1, 2 and 3 only b) 2, 3 and 4 only c) 1 and 3 only d) 1, 2, 3 and 4 Solution: b) Justification: It was set up in February 2016 as an autonomous body– based on the recommendations of the RBI-appointed Nayak Committee. It was the part of Indradhanush Plan of government.