Question Discussion & Solution

The correct answer is 2002 AD.

Key Points 

• Rajasthan Renewable Energy Corporation-
  • Established - 9 August 2002 AD
  • Headquarter - Jaipur
  • This entity was the result of the Rajasthan State Power Corporation Ltd merger with the Rajasthan Energy Development Agency.
  • This entity does work in the field of renewable energy production and capacity building.
  • This entity was awarded the IIMA power award.

Key Points

• Rajasthan Renewable Energy Corporation Limited (RRECL) was formed in August 2002 by amalgamating the erstwhile REDA (Rajasthan Energy Development Agency) and Rajasthan Rajya Vidyut Nigam Limited (RSPCL).
• The corporation is registered under the Companies Act 1956.
• RRECL is acting as a state nodal.
• Agency to promote and develop non-conventional energy sources in the State and as State Designated Agency (SDA) to implement the provisions of Energy Conservation Act 2001 in the State 

Additional Information

• Rajasthan State Power Corporation Ltd. was established in 2002 AD.
• Rajasthan Energy Development Agency was established on 21 January 1985 AD.

The correct answer is 1 only

Key Points

• Small Industries Development Bank of India (SIDBI)
  • SIDBI is the principal development financial institution for the promotion, financing and development of the Micro, Small and Medium Enterprises (MSME) sector in India.
  • It was established on April 2, 1990, through an Act of Parliament (thus, it is a statutory body).
  • It is headquartered in Lucknow, Uttar Pradesh.
  • SIDBI aims to facilitate and strengthen credit flow to MSMEs and address both financial and developmental gaps in the MSME eco-system across the country. Hence statement 1 is correct.
  • It coordinates functions of institutions engaged in similar activities.
  • Currently, the shares of SIDBI are held by Central Government and 29 other institutions including public sector banks (PSBs), insurance companies owned and controlled by Central Government.

• Functions of SIDBI:
  • It aims at emerging as a single-window to meet the developmental and financial needs of MSMEs in order to make them globally competitive, strong, vibrant and to protect the institution as a customer-friendly financial body. 
  • It also aims at enhancing the wealth of shareholders through the modern technology platform.
  • It is involved in the promotion and development of the MSME sector.
  • It is the principal institution for the development, promotion and financing of the MSME sector and for the coordination of functions of the institutions engaged in similar activities.
  • SIDBI retained its position in the top 30 Development Banks of the World in the ranking of The Banker, London.
     
• Note: Statement 2 is not correct, because SIDBI does not provide all type of loan to the agriculture sector.

The Issue Department of the RBI:

• The Issue Department is concerned with the proper and efficient management of the note issue.
• For the conduct of monetary transactions, the country has been divided into 14 circles of issue, each having an Office of Issue — the branch of the Issue Department.
• Each branch of the Issue Department consists of: (i) the General Department and (ii) the Cash Department, controlled by the currency officer.
  • The General Department deals with resource operations, i.e., arrangement of supply of notes and coins from the presses and Government Mints.
  • The Cash Department deals with cash transactions.
• ​The RBI Offices, where Issue Department is functioning, offer the facility to members of the public to exchange their notes including soiled and mutilated notes and coins including uncurrent or worn-out coins.
• The Bank is committed to providing exchange facilities free of cost at its counters during business hours.
• The Issue Department of the RBI maintains a Minimum Reserve System against the printing of notes.
• Under the Minimum Reserve System, the RBI has to maintain a minimum reserve of Rs. 200 crores, Rs. 115 crores should be in the form of gold coins and the rest in the form of foreign currencies.
• After maintaining the minimum reserve, the RBI can print any number of currency notes as per the requirement of the economy, except one rupee note.
• Since the one rupee note is issued by the Ministry of Finance but is distributed by the RBI through commercial banks. 

Therefore, the Issue Department of the RBI maintains a Minimum Reserve System against the printing of notes.

The correct answer is 2017.

Key Points

• Madhya Pradesh Industrial Development Corporation Limited(MPIDC) is the Single Window Secretariat for Investment Promotion and Facilitation of the state.
• MPIDC has launched an Integrated New Venture Establishment Portal (INVEST), which is the Single Window Portal for the state. 
• INVEST Portal is being developed for monitoring of entire life cycle of investment projects, right from receipt of the ‘Intention to Invest’ to grounding and completion.
• INVEST is acting as a one-stop solution for any investor wanting to establish & operate a business in the state.
• Now investors would not be required to visit different state department portals, rather they can avail various services/approvals required for setting up their business through INVEST Portal.
• The portal ensures time-bound delivery of facilities and permissions through continuous review/monitoring.
• The development of INVEST Portal started in April 2017.
• Department of Industrial Policy and Investment Promotion, the Government of Madhya Pradesh is responsible for the all-around industrial development of the State.
• The department facilitates the establishment of industries to achieve employment generation and utilization of local resources.
• The department acts as a catalyst to modernize and strengthen industries of the State to make them globally competitive. 
• INVEST Portal, which is being developed by DIP&IP to works as an Investor lifecycle tool, will also cover MSME units

The correct answer is Cash reserve ratio.

Key Points

• The Cash Reserve Ratio (CRR) refers to the share of Net Demand and Time Liabilities that banks have to hold as balances with the RBI.
• The objective of CRR is to keep inflation under control.
• During high inflation in the economy, the central bank raises the CRR to lower the bank’s loanable funds.
• The current Cash Reserve Ratio is 4.00% (as of June 2021).
• The current Reverse repo rate is 3.35% (as of June 2021).
• The Central bank has the authority to regulate monetary policies.
• The Ministry of Finance has the authority to regulate fiscal policies.

Additional Information

• Marginal Standing facility:
  • MSF is a facility under which scheduled commercial banks can borrow an additional amount of overnight money from the RBI by dipping into their SLR portfolio up to a limit at a penal rate of interest. 
  • This provides a safety wall against unanticipated liquidity shocks to the banking system.
  • The MSF is a scheme launched by RBI in 2011-12.
  • Under MSF banks can borrow funds up to 1% of their net demand and time liability.
  • The minimum amount for which RBI receives application is Rs. 1 crore and afterwards in multiples of rupees 1 crore.
• ​SLR is a kind of reserve that commercial banks need to maintain before crediting their money to borrowers.
  • Regulating the SLR rates is a component of RBI's monetary policy.
  • Reserve Bank of India sets the limit for banks (under Banking Regulation Act, 1949) to hold a certain proportion of their assets as SLR.
• Repo Rate:- It is a rate at which the central bank (RBI) lends money to its clients against the government securities.
• Reverse Repo- It is the rate at which the central bank (RBI) borrows money from its clients.
  • Reverse Repo is used in India as a tool in which banks will give their surplus fund to RBI for a short-term period and earn money.
  • The repo rate is always higher than the reverse repo rate.
  • Repo and Reverse repo rates are decided by the Monitory policy committee (MPC) of RBI.