Question Discussion & Solution

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 correct answer is 1, 2 and 3.

Key Points

• Planning in India:
  • History of Economic Planning In India
    • Economic planning in India dates back to the pre-Independence period when leaders of the freedom movement and prominent industrialists and academics got together to discuss the future of India after Independence which was soon to come.
    • Noted civil engineer and administrator M. Visvesvaraya is regarded as a pioneer of economic planning in India. Hence statement 1 is correct.
    • His book “Planned Economy for India” published in 1934 suggested a ten-year plan, with an outlay of Rs. 1000 crore and a planned increase of 600% in industrial output per annum based on the economic conditions of the time. 
    • The Constitution came into force on 26 January 1950. 
    • Subsequently, Planning Commis­sion was set up on 15 March 1950 and the plan era started from 1April 1951 with the launch­ing of the First Five Year Plan (1951-56).​

• Long term objectives of Five Year Plans in India are:
  • High Growth rate to improve the living standard of the residents of India.
  • Economic stability for prosperity.
  • Self-reliant economy.
  • Social justice and reducing the inequalities.
  • Modernization of the economy.
  • The idea of economic planning for five years was taken from the Soviet Union under the socialist influence of first Prime Minister Pt. Jawahar Lal Nehru. Hence statement 2 is correct.
  • The first eight five-year plans in India emphasized growing the public sector with huge investments in heavy and basic industries, but since the launch of the Ninth five-year plan in 1997, attention has shifted towards making the government a growth facilitator. Hence statement 3 is correct.

The correct answer is Residential hostel.

• Under the Rajasthan Ambedkar DBT Voucher Yojana, Students will be provided facility of residential hostels.

Key Points

• Ambedkar DBT Voucher Scheme
  • Under this scheme, the state government will provide vouchers for residential facilities to the students studying in various reserved categories of colleges of Rajasthan to stay away from their homes in urban areas. 
  • Chief Minister Ashok Gehlot has approved the proposal to implement Ambedkar DBT Voucher Scheme for SC, ST, OBC, MBC, and EWS students.
  • Under the scheme, the beneficiary students will be given Rs. 7 thousand per month for the residential facility at the divisional headquarters and Rs. 5 thousand per month for other district headquarters.
  • Under this scheme, 5000 students will be provided vouchers on a merit basis for 10 months.
  • Only those students will be able to take advantage of Rajasthan Ambedkar DBT Voucher Yojana, who live in urban areas away from their homes to get an education.

The correct answer is Minimum reserve system.

Key Points

India Currency System:

• In terms of section 22 of the reserve bank of india act, the RBI has been given the statutory function of notes issue on a monopoly basis.
• The note issue in india was originally based upon the " Proportional Reserve System ".
• When it becomes difficult to maintain the re-serve proportionately.
• It was replaced by " Minimum Reserve Systems ".

• According to the RBI amendment act of 1957, the bank should now maintain a minimum reserve of Rs.200 crore worth of gold coins.
• The gold bullion and foreign securities of which the value of gold coin and bullion should be not less than Rs.115 crore. 

The correct answer is 1, 2 and 3.

Key Points

• Consultative Group for International Agricultural Research (CGIAR)
  • The international agricultural research system, mainly the Consultative Group for International Agricultural Research (CGIAR) has been a useful ally of the
    national system. Hence statement 1 is correct.
  • However, it has undergone significant change, in terms of funding, organization and research thrusts. 
• Indian Council of Agricultural Research (ICAR)
  • It was established on 16 July 1929 as a registered society under the Societies Registration Act, 1860.
  • It is an autonomous organization under the Department of Agricultural Research and Education (DARE), Ministry of Agriculture and Farmers Welfare, Government of India. Hence statement 2 is correct.
  • It is headquartered in New Delhi. With 102 ICAR institutes and 71 agricultural universities spread across the country, this is one of the largest national agricultural systems in the world.
  • It is the apex body for coordinating, guiding and managing research and education in agriculture including horticulture, fisheries and animal sciences in the entire country.
• Krishi Vigyan Kendra (KVK)
  • KVK is an integral part of the National Agricultural Research System (NARS). The first KVK was established in 1974 at Puducherry. Hence statement 3 is not correct.
  • The mandate of KVK is technology assessment and demonstration for its application and capacity development.
  • It aims at assessment of location-specific technology modules in agriculture and allied enterprises, through technology assessment, refinement and demonstrations.
  • KVKs also produce quality technological products (seed, planting material, bio-agents, livestock) and make them available to farmers.