Question Discussion & Solution

The correct answer is Department for Promotion of Industry and Internal Trade.

Key Points

• Department for Promotion of Industry and Internal Trade is the nodal department for the formulation of the policy on Foreign Direct Investment (FDI).
  • It is a central government department under the Ministry of Commerce and Industry.
  • It controls the maintenance and management of data on inward FDI into India.
  • The Department for Promotion of Industry and Internal Trade plays a vital role in the liberalization and rationalization of the FDI policy.

 Additional Information

The correct answer is 9%.

Key Points

• 12th Five Year Plan (2012 - 2017)
  • 12th Five Year Plan 2012-17 as per the draft document released by the Planning Commission aims at a growth rate of 9%.
  • 12th Five Year Plan of the Government of India (2012–17) was India's last Five Year Plan.
  • With the deteriorating global situation, the Deputy Chairman of the Planning Commission Mr. Montek Singh Ahluwalia has said that achieving an average growth rate of 8 percent in the next five years is not possible.
  • The final growth target has been set at 8% by the endorsement of the plan at the National Development Council (NDC) meeting held in New Delhi.
  • The government intends to reduce poverty by 10 percent during the 12th Five-Year Plan.

Additional Information

• NITI Aayog (National Institution for Transforming India)
  • Planning Commission was replaced by a new institution – NITI AAYYOG on January 1, 2015, with emphasis on the ‘Bottom –Up’ approach to envisage the vision of Maximum Governance, Minimum Government, echoing the spirit of ‘Cooperative Federalism.
  • Chairperson: Prime Minister
  • Vice-Chairperson: To be appointed by Prime-Minister
  • Governing Council: Chief Ministers of all states and Lt. Governors of Union Territories.
  • Regional Council: To address specific regional issues, Comprising Chief Ministers and Lt. Governors Chaired by Prime Minister or his nominee.
  • Adhoc Membership: 2 members in ex-officio capacity from leading Research institutions on a rotational basis.
  • Ex-Officio membership: Maximum four from Union council of ministers to be nominated by Prime minister.
  • Chief Executive Officer: Appointed by Prime-minister for a fixed tenure, in the rank of Secretary to Government of India.
  • Special Invitees: Experts, Specialists with domain knowledge nominated by Prime-minister.

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.

The correct answer is Option 4.

• POLICIES AND PROGRAMMES TOWARDS POVERTY ALLEVIATION
  • ​The government’s approach to poverty reduction was of three dimensions.
    • Growth-oriented approach
      • ​It is based on the expectation that the effects of economic growth — rapid increase in gross domestic product and per capita income — would spread to all sections of society and will trickle down to the poor sections also.
      • Rapid industrial development and transformation of agriculture through a green revolution in select regions would benefit the underdeveloped regions and the more backward sections of the community. 
    • Poverty alleviation programs
      • Expanding self-employment programs and wage employment programs are being considered as the major ways of addressing poverty.
      • For example - Rural Employment Generation Programme (REGP), Prime Minister’s Rozgar Yojana (PMRY), and Swarna Jayanti Shahari Rozgar Yojana (SJSRY), Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA).
    • Providing minimum basic amenities to the people
      • ​India was among the pioneers in the world to envisage that through public expenditure on social consumption needs — provision of food grains at subsidized rates, education, health, water supply, and sanitation—people’s living standards could be improved.
      • Three major programs that aim at improving the food and nutritional status of the poor are the Public Distribution System, Integrated Child Development Scheme, and Midday Meal Scheme.
      • Pradhan Mantri Gram Sadak Yojana and Valmiki Ambedkar Awas Yojana are also attempted in developing infrastructure and housing conditions.
      • Pradhan Mantri Jan-Dhan Yojana is available in which people in India are encouraged to open bank accounts.

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.