APFC PREPARATION TIPS

UPSC ONLINE ACADEMY NET

APFC SAMPLE MOCK PAPER (UPDATED QUESTIONS)

Q.1 If the area of a circle, inscribed in an equilateral triangle is 4pi cm², then what is the area of the triangle?

A) 12 root 3

B) 11 root 3

C) 12 root 2

D) 11 root 3

Ans. A

Area of circle = 4 pi

Radius = 2

(Since pi r² = 4 pi)

R= a/2 root 3

Since a is the side of triangle

2= a/2 root 3

Or a= 4 root 3

Now, Area of triangle = root ¾ a²

Now put value of a

& on calculating, we get

12 root 3

Q.2 The area of a triangle ABC is equal to area of square of side length 6cm.What is the length of the altitude to AB where AB=9 cm?

A) 6 cm

B) 7 cm

C) 8 cm

D) 9 cm

Ans. C

Area of triangle = Area of square

½ CD* BC = 6 * 6

CD * 9 =6*6*2

CD = 8 cm

Q.3 A man walking at the rate 3km/h crosses a square field diagonally in 1 min. What is the area of the field?

A) 3000 m²

B) 4000 ^m2

C) 5000 m²⁺

D) 6000 m²

Ans. C

Speed = (3×58) m/sec = (56) m/sec.
Distance covered in (2×60)sec. = (56×2×60)m=100m
Length of diagonal = 100 m
So, area = 12×(diagonal)2 = (12×100×100)m2 = 5000m2

Q.4 A circle circumscribes a rectangle with sides of 16cm x 12 cm. find area of the circle region outside this rectangle

A) 120 cm²

B) 121 cm²

C) 122 cm²

D) 123 cm²

Ans. C

Diagonal of circle will equal to diagonal of rectangle

D= under root of 16²+ 12² = 20

So area of circle outside rectangle

Pi r² – 16*12

3.14 *10*10 -192

314 – 192 = 122 cm²

Q.5 Match list I & List II & select the correct answer using the codes given below :

List-I

Founders

a) Larry page

b) Jamsetji Nusserwanji Tata

c) Leela Samson

d) Kiran Mazumdar Shaw

List-II

GROUP / ORGANISATION

1. Tata group

2. Google

3. Censor board

4. Biocon

Codes:

A) a-1,b-2,c-4.d-3

B) a-2, b-1,c-4,d-3

C) a-2, b-1, c-3, d-4

D) a-1,b-2,c-3,d-4

Ans. C

Q.6  Match list I & List II & select the correct answer using the codes given below :

List-I

Chairperson

a) R K Srivastav

b) A.K. Mittal

c) Sindhushree Khullar

d) Pahlaj Nihalani

List-II

BOARD/AUTHORITY

1. Central Board of Film Certification(CBFC)

2. National Institution for Transforming India(NITI) Aayog

3. Railway board

4. Airports Authority of India (AAI)

Codes:

A) a-4, b-3, c-2,d-1

B) a-3, b-4 ,c-2,d-1

C) a-4, b-3, c-1, d-2

D) a-3, b-4, c-1, d-2

Ans. A

Q.7 Match list I & List II & select the correct answer using the codes given below :

List-I

Persons

a) Kamal Kishore Goyanka

b) Cristiano Ronaldo

c) Prabhu Nath Dwivedi

d) C V Anand

List-II

Awards

1. Ballon d’Or 2014 Award

2. Vyas Samman Award

3. National Special Category Award

4. Sahitya Akademi Award for Sanskrit

Codes:

A) a-2,b-1,c-4,d-3

B) a-2,b-1,c-3,d-4

C) a-1,b-2,c-3,d-4

D) a-1,b-3,c-2,d-4

Ans. A

Hindi writer Kamal Kishore Goyanka has been selected for the prestigious Vyas Samman Award for 2014 for his book “Premchand Kee Kahaniyo Kaa Kaalkramanusar”.

Q.8 Statements:

1) Fiscal Policy is the influence of the income & expenditure of the government

2) Any measure related to the Government taxation & government spending will be termed as the fiscal measure

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

Fiscal policy is concerned with the raising of the govt revenue & incurring of Govt expenditure. To generate revenue & to incur expenditure, Govt frames a policy called budgetary policy or fiscal policy. So, the fiscal policy is concerned with the government expenditure & government revenue.

Fiscal policy has to decide on the size and pattern of flow of expenditure from the government to the economy and from the economy back to the government. So, in broad term fiscal policy refers to "that segment of national economic policy which is primarily concerned with the receipts and expenditure of central government." In other words, fiscal policy refers to the policy of the government with regard to taxation, public expenditure and public borrowings.

The importance of fiscal policy is high in underdeveloped countries. The state has to play active and important role. In a democratic society direct methods are not approved. So, the government has to depend on indirect methods of regulations. In this way, fiscal policy is a powerful weapon in the hands of government by means of which it can achieve the objectives of development.

Main Objectives of Fiscal Policy In India:

The fiscal policy is designed to achive certain objectives as follows :-

1. Development by effective Mobilisation of Resources

The principal objective of fiscal policy is to ensure rapid economic growth and development. This objective of economic growth and development can be achieved by Mobilisation of Financial Resources.

The central and the state governments in India have used fiscal policy to mobilise resources.

The financial resources can be mobilised by :-

Taxation : Through effective fiscal policies, the government aims to mobilise resources by way of direct taxes as well as indirect taxes because most important source of resource mobilisation in India is taxation.

Public Savings : The resources can be mobilised through public savings by reducing government expenditure and increasing surpluses of public sector enterprises.

Private Savings : Through effective fiscal measures such as tax benefits, the government can raise resources from private sector and households. Resources can be mobilised through government borrowings by ways of treasury bills, issue of government bonds, etc., loans from domestic and foreign parties and by deficit financing.

2. Efficient allocation of Financial Resources

The central and state governments have tried to make efficient allocation of financial resources. These resources are allocated for Development Activities which includes expenditure on railways, infrastructure, etc. While Non-development Activities includes expenditure on defence, interest payments, subsidies, etc.

But generally the fiscal policy should ensure that the resources are allocated for generation of goods and services which are socially desirable. Therefore, India's fiscal policy is designed in such a manner so as to encourage production of desirable goods and discourage those goods which are socially undesirable.

3. Reduction in inequalities of Income and Wealth

Fiscal policy aims at achieving equity or social justice by reducing income inequalities among different sections of the society. The direct taxes such as income tax are charged more on the rich people as compared to lower income groups. Indirect taxes are also more in the case of semi-luxury and luxury items, which are mostly consumed by the upper middle class and the upper class. The government invests a significant proportion of its tax revenue in the implementation of Poverty Alleviation Programmes to improve the conditions of poor people in society.

4. Price Stability and Control of Inflation

One of the main objective of fiscal policy is to control inflation and stabilize price. Therefore, the government always aims to control the inflation by Reducing fiscal deficits, introducing tax savings schemes, Productive use of financial resources, etc.

5. Employment Generation

The government is making every possible effort to increase employment in the country through effective fiscal measure. Investment in infrastructure has resulted in direct and indirect employment. Lower taxes and duties on small-scale industrial (SSI) units encourage more investment and consequently generates more employment. Various rural employment programmes have been undertaken by the Government of India to solve problems in rural areas. Similarly, self employment scheme is taken to provide employment to technically qualified persons in the urban areas.

6. Balanced Regional Development

Another main objective of the fiscal policy is to bring about a balanced regional development. There are various incentives from the government for setting up projects in backward areas such as Cash subsidy, Concession in taxes and duties in the form of tax holidays, Finance at concessional interest rates, etc.

7. Reducing the Deficit in the Balance of Payment

Fiscal policy attempts to encourage more exports by way of fiscal measures like Exemption of income tax on export earnings, Exemption of central excise duties and customs, Exemption of sales tax and octroi, etc.

The foreign exchange is also conserved by Providing fiscal benefits to import substitute industries, Imposing customs duties on imports, etc.

The foreign exchange earned by way of exports and saved by way of import substitutes helps to solve balance of payments problem. In this way adverse balance of payment can be corrected either by imposing duties on imports or by giving subsidies to export.

8. Capital Formation

The objective of fiscal policy in India is also to increase the rate of capital formation so as to accelerate the rate of economic growth. An underdeveloped country is trapped in vicious (danger) circle of poverty mainly on account of capital deficiency. In order to increase the rate of capital formation, the fiscal policy must be efficiently designed to encourage savings and discourage and reduce spending.

9. Increasing National Income

The fiscal policy aims to increase the national income of a country. This is because fiscal policy facilitates the capital formation. This results in economic growth, which in turn increases the GDP, per capita income and national income of the country.

10. Development of Infrastructure

Government has placed emphasis on the infrastructure development for the purpose of achieving economic growth. The fiscal policy measure such as taxation generates revenue to the government. A part of the government's revenue is invested in the infrastructure development. Due to this, all sectors of the economy get a boost.

11. Foreign Exchange Earnings

Fiscal policy attempts to encourage more exports by way of Fiscal Measures like, exemption of income tax on export earnings, exemption of sales tax and octroi, etc. Foreign exchange provides fiscal benefits to import substitute industries. The foreign exchange earned by way of exports and saved by way of import substitutes helps to solve balance of payments problem.

Q.9 Statements:

1) Government generally takes neutral fiscal policy when the economy is in state of equilibrium

2) When the tax revenue of the Government is high then excess money can be used to pay the government debt

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

Fiscal neutrality is a term referring to the impact of taxation on the economy. When it is said that fiscal neutrality is desirable, the meaning is that the tax measure or policy should not introduce undesirable distortions into the normal working of the economy by significantly altering economic incentives and changing behavior.

In fact almost any tax measure will distort the economy (from the path or process that would have prevailed in its absence). For example a sales tax applied to all goods will tend to discourage consumption of all the taxed items, and an income tax will tend to discourage people from earning money in the category of income that is taxed (if they can manage to avoid being taxed). Some people may move out of the work force (to avoid income tax); some may move into the cash or black economies (where incomes are not revealed to the tax authorities).

The discussion about fiscal neutrality therefore really concerns tax measures that introduce distortions into the economy or society that raise serious doubts as to the wisdom of the tax measure. For example, in Western nations the relatively affluent are taxed partly to provide the money used to assist the relatively poor. As a result of the taxes (and associated subsidies to the poor), incentives are changed for both groups. The relatively rich are discouraged from declaring income and from earning marginal (extra) income, because they know that any additional money that they earn and declare will be taxed at their highest marginal tax rates. At the same time the poor have an incentive to conceal their own taxable income (and usually their assets) so as to increase the likelihood of their receiving state assistance. It can be argued that the distortion of incentives (the move away from a fiscally neutral stance that does not affect incentives) does more harm than good.

One of the main distortions sometimes said to have arisen in the USA and the UK as a result of tax policy is the creation of a permanent underclass, dependent on welfare and discouraged (by the tax system) from seeking work and betterment. In some countries the tax system can be badly designed to deal with such issues, e.g. sometimes the marginal tax rate that applies to earned income (as someone takes work attempting to escape from unemployment and welfare) is so high that the persons take-home income (post-tax and after taking account of any benefits or welfare receipts) does not increase as a result of taking work. This is known as the welfare trap.

There was an example of distortion of the economy by tax policy some years ago in the UK when cars supplied by employers to their employees were taxed at advantageous rates (e.g. encouraging the growth of company car fleets). Over several years the distortion grew to the point that the majority of cars used by working families were company cars and the dealership structures, and even the types of cars used, altered to adjust to the tax regime.

Q.10 In context with the Internal Debt, consider the following statements:

1) It is the part of the total debt that is owed to lenders in the country

2) Government generally borrows by issuing Treasury bills & Government bonds

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

Internal debt is a class of national debt that has to do with the money owed by the government to lenders based in that same country.  The debt encompasses any obligation that is taken on by any agency of the national government, including funds that are borrowed in lieu of printing additional currency.  While many nations carry at least some internal debt, there is usually some effort to balance this portion of the overall country debt with obligations that are owed to lenders outside the nation.

Along with internal debt, countries are also likely to carry at least some external debt.  This form of financial obligation encompasses any and all funds borrowed from lenders that are based outside the borders of the country.  Debt of this type may be assumed in order to stabilize the economy within a nation, with the effort sometimes helping to protect the value of that nation’s currency on the world market.  Both internal and external debt may be taken on as a means of dealing with some sort of emerging economic crisis, such as rapidly growing inflation or a period of recession.

Managing both external and internal debt is something that is important to any nation.  Typically, the idea is to retire certain debts as soon as possible, often before the actual settlement date for the obligation arrives.  By structuring a viable debt management plan, governments can control the total amount of debt as well as retire certain obligations even as new debts are created.  When managed properly, the turnaround on debt is such that the total national debt decreases over time without creating any type of hardship for the internal economy or any of its citizens.

There are benefits to utilizing internal debt versus simply printing more currency for the government to use.  Taking into consideration some of the basics of macroeconomics, going with this strategy can often allow the government to at least partially avoid the increase in inflation that is more likely to occur when more money is printed and released into circulation.  In addition, the internal debt incurred does not necessarily have to be used for the purchase of goods and services.  One strategy is to borrow the money from private lenders as a means of creating securities that can in turn be purchased with the potential of a certain level of returns to investors.  The government is then able to generate funds from the purchases and over time retire the debt while using this process to allow investors to stimulate the economy.

While there are positive aspects of carrying a certain amount of internal debt, nations tend to monitor the activity closely.  Should the debt increase beyond a certain point, steps are usually taken to restore more of a balance between external and internal debt, usually by settling obligations and reducing the overall country debt.  Doing so ultimately helps to keep the economy stable while also protecting the value of the nation’s currency on the open market.

The simple distinction between external and internal debt is that the former is debt held by foreign banks, while the latter designates debt held by domestic banks. This may prove too simple, however. Globalization has led to an integrated world economy where, for better or worse, distinctions between "internal" and "external" have become blurred. Differences between the two forms of debt still exist, but they have become closely integrated.

Q.11 Statements:

1) Plan expenditure relates to the items that deals with the long term socio economic goals

2) Non Plan expenditure relates to the routine expenditures of the Government

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

There are two components of expenditure - plan and non-plan.

Of these, plan expenditures are estimated after discussions between each of the ministries concerned and the Planning Commission.

Non-plan revenue expenditure is accounted for by interest payments, subsidies (mainly on food and fertilisers), wage and salary payments to government employees, grants to States and Union Territories governments, pensions, police, economic services in various sectors, other general services such as tax collection, social services, and grants to foreign governments.

Non-plan capital expenditure mainly includes defence, loans to public enterprises, loans to States, Union Territories and foreign governments.

Q.12 Statements:

1) Every form of money may be called as revenue if it increases financial liability

2) Non tax revenue receipts are those that are received by taxing the public

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. D

Revenue is that income that does not increase the financial liability

Non tax revenue receipts are those that are generated by taxing the public

Q.13 Which of the following is/are the part of the Revenue expenditure ?

1) Interest paid by the Government on all the internal & External loans

2) Money spent for maintaining law & order of the country

3) Money spent on social services like  Health & Education etc

4) Purchase of the equipments for the Defence services

Codes:

A) 1,2,4

B) 2,3,4

C) 1,2,3

D) 1,2,3,4

Ans. C

A capital expenditure is an amount spent to acquire or improve a long-term asset such as equipment or buildings. Usually the cost is recorded in an account classified as Property, Plant and Equipment. The cost (except for the cost of land) will then be charged to depreciation expense over the useful life of the asset.

A revenue expenditure is an amount that is expensed immediately—thereby being matched with revenues of the current accounting period. Routine repairs are revenue expenditures because they are charged directly to an account such as Repairs and Maintenance Expense. Even significant repairs that do not extend the life of the asset or do not improve the asset (the repairs merely return the asset back to its previous condition) are revenue expenditures.

Q.14 Which of the following has been taken into account for the financial assistance according to the Gadgil formula ?

1) Per capita income

2) Problems of the state

3) Fiscal management

4) Female illiteracy

5) Population control

6) state’s Population

Codes:

A) 1,3,4,5,6

B) 1,2,4,5,6

C) 1,4,5,6

D) 1,2,3,4,5,6

Ans. D

The Gadgil formula was formulated with the formulation of the fourth five-year plan for the distribution of plan transfers amongst the states. It was named after the then deputy chairman of thePlanning Commission Dr. D R Gadgil. The central assistance provided for in the first three plans and annual plans of 1966-1969 lacked objectivity in its formulation and did not lead to equal and balanced growth in the states.The National Development Council (NDC) approved the following formula:

1. Special Category states like Assam, Jammu and Kashmir and Nagaland were given preference. Their needs should first be met out of the total pool of Central assistance.

2. The remaining balance of the Central assistance should be distributed among the remaining States on the basis of the following criteria:

60 per cent on the basis of population;

10 per cent on the basis of tax effort, determined on the basis of individual State's per capita tax receipts as percentage of the State's per capita income;

10 per cent on the basis of per capita State income, assistance going only to States whose per capita incomes are below the national average;

10 per cent on the basis of spill-over into the Fourth Plan of major continuing irrigation and power projects;

10 per cent for special problems of individual States.

Reasoning behind the given weights:

i. Population

In a country like India population acts as an apt measure to represent the requirements of the people because a major portion of the population lives below the poverty line. This proposition was also supported by the empirical data which showed a negative correlation between population of states and their per capita income.

ii. Tax effort

This is an important factor to measure the potential of the state as far as its own resources are concerned. This relative measure incentivizes the states to undertake measures to increase their own potential through various tax measures.

iii. State per capita income

A problem regarding unequal development amongst the states was faced in the earlier plans because of larger states with their large plans were able to get a larger share of resources from the centre. This led to increased inequalities amongst the states. Therefore, to make the distribution fairer to the smaller states with a lesser than national per capita average income were given extra share in the resources.

iv. Special Problems

This factor was introduced so as to provide enough resources to states to overcome problems like droughts, famines etc. In the absence of this share, such states would have suffered huge losses because of these problems and the implementation of their plans could have been hindered. This was a discretionary element in the formula which required proper scrutiny of the states situation by the Finance Commission.

v. Irrigation and power projects

These projects have been in the process of implementation before the fourth plan was formulated. They needed extra resources for the successful completion of these projects.

Q.15 Which of the following are the part of the Public money ?

1) Money held by the Central Government

2) Money held by commercial banks as Cash Reserve ratio & Statutory Liquidity Ratio

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. D

In National Income Accounting, government spending, government 

expenditure, or government spending on goods and services includes all government consumption and investment but excludes transfer payments made by a state. Government acquisition of goods and services for current use to directly satisfy individual or collective needs of the members of the community is classed as government final consumption expenditure. Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (government gross fixed capital formation). Government outlays that are not acquisition of goods and services, and instead represent transfers of money, such as social security payments, are called transfer payments and are not included in what the national income accounts refer to as government expenditure. The two types of government spending, on final consumption and on gross capital formation, together constitute one of the major components of gross domestic product.

John Maynard Keynes was one of the first economists to advocate government deficit spending as part of the fiscal policy response to an economic contraction. In Keynesian economics, increased government spending is thought to raise aggregate demand and increase consumption, which in turn leads to increased production. Keynesian economists argue that the Great Depression was ended by government spending programs such as theNew Deal and military spending during World War II. According to the Keynesian view, a severe recession or depression may never end if the government does not intervene. Classical economists, on the other hand, believe that increased government spending exacerbates an economic contraction by shifting resources from the private sector, which they consider productive, to the public sector, which they consider unproductive.

Government spending can be financed by seigniorage, taxes, or government borrowing.

Transfer payments

Government expenditures that are not acquisition of goods and services, and instead just represent transfers of money, such as social security payments, are called transfer payments. These payments are considered to be exhaustive because they do not directly absorb resources or create output. In other words, the transfer is made without any exchange of goods or services. Examples of certain transfer payments include welfare (financial aid), social security, and government giving subsidies to certain businesses (firms).

Q.16 In context with the debentures, consider the following statements:

1) These represent credit to the company

2) It is a form of certificate issued under the seal of the company

3) These are issued against the assets of company

4) Theses are not secured

Codes:

A) 1,3,4

B) 2,3,4

C) 1,2,4

D) 1,2,3,4

Ans. D

Debentures Meaning:
In deposit terminology, the term Debentures refers to a certificate issued by a person or corporation with the purpose of acknowledging or creating a debt. Debentures are generally unsecured by assets and are interest bearing securities.

Debentures Example:
For example, most Debentures are essentially unsecured bonds issued by corporations relying on the credit worthiness of the issuer for their distribution, although a Debenture in the United Kingdom is usually a secured debt. The interest income that holders of Debentures receive is generally derived from a company, corporate profits. Some Debentures feature a convertibility option, whereby the Debenture can be converted into shares of the corporation common stock. These securities are known as convertible Debentures. Because of the convertibility feature of these securities, they typically carry lower interest rates than Debentures without the convertibility feature. In the case that the corporation goes into bankruptcy, the Debenture holders get treated as general creditors.

Q.17 Statements:

1) DICGC insures all the deposit accounts of the foreign governments

2) Primary Agriculture cooperative Societies are secured by the DICGC

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. D

Deposit Insurance and Credit Guarantee Corporation ( DICGC) is a subsidiary of Reserve Bank of India. It was established on 1961 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of providing insurance of deposits and guaranteeing of credit facilities. DICGC insures all bank deposits, such as saving, fixed, current, recurring deposits for up to the limit of Rs. 100,000 of each deposits in a bank.

Banks covered by Deposit Insurance Scheme

(I) All commercial banks including the branches of foreign banks functioning in India, Local Area Banks and Regional Rural Banks.

(II) Co-operative Banks - All eligible co-operative banks as defined in Section 2(gg) of the DICGC Act are covered by the Deposit Insurance Scheme. All State, Central and Primary co-operative banks functioning in the States/Union Territories which have amended their Co-operative Societies Act as required under the DICGC Act, 1961, empowering RBI to order the Registrar of Co-operative Societies of the respective States/Union Territories to wind up a co-operative bank or to supersede its committee of management and requiring the Registrar not to take any action for winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the RBI, are treated as eligible banks. At present all Co-operative banks are covered by the Scheme. The Union Territories of Lakshadweep and Dadra and Nagar Haveli do not have Co-operative Banks.

The management of the Corporation vests with its Board of Directors, of which a Deputy Governor of the RBI is the Chairman. As per the DICGC Act, the Board shall consist of, besides the Chairman, (i) one Officer (normally in the rank of Executive Director) of the RBI, (ii) one Officer from the Central Government, (iii) five Directors nominated by the Central Government in consultation with the RBI, three of whom are persons having special knowledge of commercial banking, insurance, commerce, industry or finance and two of whom shall be persons having special knowledge of, or experience in co-operative banking or co-operative movement and none of the directors should be an employee of the Central Government, or the RBI or the Corporation or a director or an employee of a banking company or a co-operative bank, or otherwise actively connected with a banking company or a co-operative bank, and (iv) four Directors, nominated by the Central Government in consultation with the RBI, having special knowledge or practical experience in respect of accountancy, agriculture and rural economy, banking, co-operation, economics, finance, law or small scale industry or any other matter which may be considered to be useful to the Corporation.

Types of Deposits Covered DICGC insures all bank deposits, such as saving, fixed, current, recurring, etc. except the following types of deposits.

(i) Deposits of foreign Governments; (ii) Deposits of Central/State Governments; (iii) Inter-bank deposits; (iv) Deposits of the State Land Development Banks with the State co-operative banks; (v) Any amount due on account of and deposit received outside India; (vi) Any amount which has been specifically exempted by the corporation with the previous approval of the RBI.

Insurance Premium

QUESTIONS ON DICGC:

1. Which banks are insured by the DICGC?

Commercial Banks: All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.

Cooperative Banks: All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories which have amended the local Cooperative Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar of Cooperative Societies of the State / Union Territory to wind up a cooperative bank or to supersede its committee of management and requiring the Registrar not to take any action regarding winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the RBI are covered under the Deposit Insurance Scheme. At present all co-operative banks other than those from the State of Meghalaya and the Union Territories of Chandigarh, Lakshadweep and Dadra and Nagar Haveli are covered by the DICGC.

Primary cooperative societies are not insured by the DICGC.

2. What does the DICGC insure?

The DICGC insures all deposits such as savings, fixed, current, recurring, etc. deposits except the following types of deposits

(i) Deposits of foreign Governments;

(ii) Deposits of Central/State Governments;

(iii) Inter-bank deposits;

(iv) Deposits of the State Land Development Banks with the State co-operative bank;

(v) Any amount due on account of and deposit received outside India

(vi) Any amount, which has been specifically exempted by the corporation with the previous approval of Reserve Bank of India

3. What is the maximum deposit amount insured by the DICGC?

Each depositor in a bank is insured up to a maximum of 1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

4. How will you know whether your bank is insured by the DICGC or not?

The DICGC while registering the banks as insured banks furnishes them with printed leaflets for display giving information relating to the protection afforded by the Corporation to the depositors of the insured banks. In case of doubt, depositor should make specific enquiry from the branch official in this regard.

5. What is the ceiling on amount of Insured deposits kept by one person in different branches of a bank?

The deposits kept in different branches of a bank are aggregated for the purpose of insurance cover and a maximum amount up to Rupees one lakh is paid.

6. Does the DICGC insure just the principal on an account or both principal and accrued interest?

The DICGC insures principal and interest up to a maximum amount of One lakh. For example, if an individual had an account with a principal amount of 95,000 plus accrued interest of 4,000, the total amount insured by the DICGC would be 99,000. If, however, the principal amount in that account was One lakh, the accrued interest would not be insured, not because it was interest but because that was the amount over the insurance limit.

7. Can deposit insurance be increased by depositing funds into several different accounts all at the same bank?

All funds held in the same type of ownership at the same bank are added together before deposit insurance is determined. If the funds are in different types of ownership or are deposited into separate banks they would then be separately insured.

8. Are deposits in different banks separately insured?

Yes. If you have deposits with more than one bank, deposit insurance coverage limit is applied separately to the deposits in each bank.

9. If I have my funds on deposit at two different banks, and those two banks are closed on the same day, are my funds added together, or insured separately?

Your funds from each bank would be insured separately, regardless of the date of closure.

10. What is the meaning of deposits held in the same capacity and same right; and deposits held in different capacity and different right?

If an individual opens more than one deposit account in one or more branches of a bank for example, Shri S.K. Pandit opens one or more savings/current account and one or more fixed/recurring deposit accounts etc., all these are considered as accounts held in the same capacity and in the same right. Therefore, the balances in all these accounts are aggregated and insurance cover is available up to rupees one lakh in maximum.

Q.18 FTP stands for-

A) File transfer Protocol

B) File transaction process

C) Folder transfer protocol

D) Field transfer protocol

Ans. A

Q.19 HTML commands, such as <H1> are known as:

A) Tags

B) Labels

C) Flags

D) Browser requests

Ans. A

Q.20 Which of the following is a small programme embedded within a GIF image ?

A) Web bug

B) Cookie

C) Web deceiver

D) Spam

Ans. A

Q.21 URL stands for-

A) Unique Representation Location

B) Unique Resource Locator

C) Uniform Resource Locator

D) Uniform Resource Location

Ans. C

Q.22 The formal set of rules through which computers communicate are called –

A) Patterns

B) Algorithms

C) Controller

D) Protocols

Ans. D

Q.23 Match list I & List II & select the correct answer using the codes given below :

List-I

Persons

a) Amitabh Bachchan

b) Subhash Chandra Agrawal

c) Ashok Srinivasan

d) Frank Islam

List-II

Awards

1. Martin Luther King Award

2. Giraffe Hero Award 2015

3. The Hindu Literary Prize 2014

4. Social Media Person of the Year 2015

A) a-1,b-2,c-3,d-4

B) a-2,b-1,c-4,d-3

C) a-3,b-1,c-2,d-4

D) a-4,b-2,c-3,d-1

Ans. D

Also remember Poet Arundhathi Subramaniam won inaugural Khushwant Singh Memorial Prize for Poetry “When God is a Traveller”-announced at International Literature Festival.

Q.24 Which of the following has become the first state to completely ban the sale of loose cigarettes and other tobacco items ?

A) Punjab

B) Maharashtra

C) Uttarakhand

D) New Delhi

Ans. A

Q.25 Match list I & List II & select the correct answer using the codes given below :

List-I

Governor

a) N N Vohra

b) Aziz Qureshi

c) Prof Kaptan Singh Solani

d) Kalyan Singh

List-II

State

1. Jammu & Kashmir

2. Mizoram

3. Haryana

4. Rajasthan

A) a-1,b-2, c-3,d-4

B) a-2,b-1,c-4,d-3

C) a-1,b-2,c-4,d-3

D) a-2,b-1,c-3,d-4

Ans. A

Q.26 Which among the following is not correctly matched ?

A) Miss Colombia Paulina Vega – Miss Universe

B) Edwar Lugu - President of Zambia

C) International Renewable Energy Agency(IRENA)-Intergovernmental organization

D) Yingluck Shinawatra – Thailand’s Prime Minister

Ans. D

Q.27 Match list I & List II & select the correct answer using the codes given below :

List-I

Persons

a) Bhakti Sharma

b) Stephen Constantine

c) Dhruv Sitwala

d) AB de Villiers

List-II

Field

1. Swimming

2. Football

3. Billiards

4. Cricket

A) a-1, b-2,c-3,d-4

B) a-2,b-1,c-3,d-4

C) a-3,b-1,c-2,d-4

D) a-1,b-3,c-2,d-4

Ans. A

Pankaj Advani-Biliards

Q.28  No sooner(a)      had he taken over the charge(b)    that the mischief makers(c)          started their mischief.(d)

A) a

B) b

C) c

D) d

Ans. A

Select the word that is most suitable in meaning to the word :

Q.29 Alacrity

A) Cleanliness

B) Cleverness

C) Eagerness

D) Reluctance

Ans. C

Q.30 Blemishes

A) Qualities

B) Faults

C) Bruises

D) Vices

Ans. B

Select the word that is furthest in meaning to the word :

Q.31 Abortive

A) Futile

B) Unyielding

C) Effective

D) Methodical

Ans. C

Q.32 Damnation

A) Retribution

B) Condemnation

C) Resurrection

D) Salvation

Ans. D

PASSAGE

The fundamental objectives of sociology are the same as those of science generally - discovery and explanation. To discover the essential data of social behaviour and the connections among the data is the first objective of sociology. To explain the data and the connections is the second and larger objective. Science makes its advances in terms of both of these objectives. Sometimes it is the discovery of a new element or set of elements that marks a major breakthrough in the history of scientific discipline. Closely related to such discovery is the discovery of relationships of data that had never been noted before. All of this is, as we know, of immense importance in science. But the drama of discovery, in this sense, can sometimes lead us to overlook the greater importance of explanation of what is revealed by the data. Sometimes decades, even centuries, pass before known connections and relationships are actually explained. Discovery and explanation are the two great interpenetrating realms of science.
The order of reality that interests the scientists is the empirical order, that is, the order of data and phenomena revealed to us through observation or experience. To be precise or explicit about what is, and is not, revealed by observation is not always easy, to be sure. And often it is necessary for our natural powers of observation to be supplemented by the most intricate of mechanical aids for a given object to become empirical in the sense just used. That the electron is not as immediately visible as is the mountain range does not mean, obviously, that it is any less empirical. That social behaviour does not lend itself to as quick and accurate a description as, say chemical behaviour of gases and compounds does not mean that social roles, statuses, and attitudes are any less empirical than molecules and tissues. What is empirical and observable today may have been non-existent in scientific consciousness a decade ago. Moreover, the empirical is often data inferred from direct observation. All of this is clear enough and we should make no pretence that there are not often shadow areas between the empirical and the nonempirical. Nevertheless, the first point to make about any science, physical or social, is that its world of data is the empirical world. A very large amount of scientific energy goes merely into the world of expanding the frontiers, through discovery, of the known, observable, empirical world.

Q.33 According to the passage, scientists are not interested in theological explanations because

A) scientists tend to deny the existence of God.

B) theology cannot explain the fundamental nature of the universe, i.e. change.

C) theological explanations cannot be subjected to empirical testing.

D) theology fails to accommodate the complexities of human behaviour.

Ans. C

Q.34 The primary purpose of the passage is to

A) show that explanation is more important than discovery.

B) prove that sociology is a science.

C) explain the major objectives of sociology.

D) discuss scientific method.

Ans. C

Q.35 Which of the following statements best agrees with the authors position?

A) Science is the formulation of unverified hypothesis.

B) Explanation is inferred from data.

C) Causation is a basis for explanation.

D) Generalisation is a pre requisite for explanation.

Ans. C

Q.36 The authors main point in the first paragraph may best be described by which of the following statements?

A) Science and sociology are interdisciplinary.

B) The first objective of sociology is discovery.

C) Discovery without explanation is meaningless.

D) Both discovery and explanation are fundamental to building a science.

Ans. D

PASSAGE

Today, the educational value of appealing to the eyes as well as to the ear has been fully recognized, and the lack of suitable materials, which has in the past been a handicap to visual education, is being made good. The exhibition is one important medium for visual education that has gained greatly in popularity in recent years. Exhibitions may range in subject from the purely practical such as those sponsored by some authorities for health and housecraft demonstrations to collections of artistic and historical interest like those circulated by the Victoria and Albert Museum. A natural focus for this particular form of education through the eye is the local museum. Museums and galleries are, indeed, playing an increasingly important part in the educational life of their localities; and possibly their greatest contribution can be made in the field of adult education. If they are valuable as a base for the display of material supplied from outside sources, they have a more important function in fostering local distinctions and traditions of all kinds. This they can do by their permanent collections, by special exhibitions shown on their own premises, or by traveling exhibitions circulated to other centers in the locality for example, to colleges of further education or to community centers. An outstanding value of the exhibition method is that it does not provide instruction only, but by the display of works of craftsmanship and art it gives training in appreciation, a sense of quality and individual character.
Another most important medium for visual education is the cine-film and at the present time the supply of specially produced educational films is being rapidly increased. The film, like the exhibition, is well adapted for the demonstration of practical activities and skills of all kinds, and to the communication of cultural ideas and values. But it has a further distinctive contribution of particular importance in education. Owing to the exceptionally strong emotional impact of the cinema, films dealing with controversial topics as, for example the whole range of modern social questions can be relied upon to provoke discussions and arouse interest in current problems.

Q.37 A suitable title for the passage would be

A) Cine films: The educational angle.

B) Museums and Galleries.

C) Visual Education: Importance and Approaches.

D) Films and craftsmanship.

Ans. C

Q.38 The film strip is referred to as humbler possibly because

A) it was invented by Mr. Humbler.

B) it consists of a series of static pictures while a film has continuous movement.

C) it is not as advanced a visual form as the cine film.

D) it is cheap and can be easily handled.

Ans. B

Q.39 The passage can best be described as

A) indoctrinating

B) argumentative

C) critical

D) informative

Ans. D

Q.40 Which of the following has the longest coastline ?

A) Gujarat

B) Andhra Pradesh

C) Maharashtra

D) Tamil Nadu

Ans. A

Q.41 Consider the following :

1) Garo hills     Meghalaya

2) Mikir hills    Assam

3) Kaimur hills Sikkim

Which of the above pairs are correctly matched ?

A) 1 & 2

B) 2 & 3

C) 1,2,3

D) Only 3

Ans. A

Kaimur hills  -  Madhya Pradesh

Q.42 Consider the following pairs :

1) Great Himalayan National park          Himachal Pradesh

2) Hemis high altitude National park      Jammu Kashmir

3) Valley of flowers National park          Uttarakhand

Which of the above are correctly matched ?

A) 1 & 2

B) Only 3

C) 2 & 3

D) 1,2,3

Ans. D

Q.43 Consider the following statements :

1) Buckingham canal runs parallel to the east coast of India

2) Indira Gandhi Canal runs parallel to the west coast of India

Which of the above are correctly matched ?

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. A

Indira Gandhi Canal runs parallel to the Corromandel coast of South India.

Q.44 Which of the following is the major producer of coffee & Iron ore ?

A) Assam

B) Chhatisgarh

C) Gujarat

D) Karnataka

Ans. D

Q.45 Mercury is emitted as a pollutant by :

A) Coal based power plants

B) Cold storage facilities

C) Sugar, Paper & Jute mills

D) Wineries

Ans. A

Q.46 Integrated Test range where missiles are tested is located at :

A) Bengaluru

B) Chandigarh

C) Sriharikota

D) Thiruvananthpuram

Ans. B

Q.47 We often find the term “Goldilocks Zone” in news.It is mentioned in the context of :

A) Identification of earth-like planets in the universe

B) Use of wireless short distance communication

C) Minimum distance required between Earth & any artificial satellite revolving around it

D) None of the above

Ans. A

Q.48 In the context of the defence equipment, what are MANPADS ?

A) Shoulder launched surface to air missiles

B) Infra red based night vision devices

C) Unmanned aircraft

D) Nuclear powered submarines

Ans. A

Q.49 In which of the following states famous ‘ Living Root Bridges “ found ?

A) Arunachal Pradesh

B) Himachal Pradesh

C) Kerala

D) Meghalaya

Ans. D

Q.50 Consider the following statements about Cripps Proposals of 1942 :

1) Provision was to be made for participation of Indian States in the Constitution-making body.

2) British Government undertook to accept and implement the Constitution

3) All provinces of British India were to give an undertaking about the acceptance of the Constitution.

4) In the ongoing World War, no resources of British India would be used.

Which of the statements given above is/are correct?

A) 1 and 2 only

B) 2 only

C) 1, 2 and 4

D) 1, 3 and 4

Ans. A

The Cripps mission was an attempt in late March 1942 by the British government to secure full Indian cooperation and support for their efforts in World War II. The mission was headed by Sir Stafford Cripps, a senior left-wing politician and government minister in the War Cabinet of Prime Minister Winston Churchill. Cripps was sent to negotiate an agreement with the nationalist leaders, speaking for the majority Indians, and Muhammad Ali Jinnah, speaking for the small number of Muslims population. Cripps worked to keep India loyal to the British war effort in exchange for a promise of full self-government after the war. Cripps promised to give dominion status after the war as well as elections to be held after the war. Cripps discussed the proposals with the Indian leaders and published them. Both the major parties, the Congress and the League rejected his proposals and the mission proved a failure. Cripps had designed the proposals himself, but they were too radical for Churchill and the Viceroy, and too conservative for the Indians; no middle way was found. Congress moved toward the Quit India movement whereby it refused to cooperate in the war effort, while the British imprisoned practically the entire Congress leadership for the duration of the war.Jinnah was pleased to see that the right to opt out of a future Union was included.

Q.51 Gandhiji's call for breaking Salt Laws was in response to the

A) Non-Cooperation Movement

B) Civil Disobedience Movement

C) Khilafat Movement

D) Quit India Movement

Ans. B

Q.52 Which among the following about Mahatma Gandhi's Non-Cooperation Movement are correct ?

1) Refusal to attend Government Durbars and official functions

2) Participation in elections

3) Participation in rallies for the boycott of foreign goods

4) Surrender of titles

Select the correct answer using the code given below :

Code:

A) 1, 2 and 3

B) 1, 3 and 4

C) 2, 3 and 4

D) 1 and 4 only

Ans. B

Call for boycott of elections was also included in the call for Non-Cooperation Movement.

Q.53 Which one among the following was a newspaper founded and edited by Raja Rammohan Roy?

A) The Calcutta Gazette

B) Mirat-ulAkhbar

C) Harijan

D) The Bharat Mihir

Ans. B

Q.54 Consider the following statements relating to Jain literature :

1) The sacred books of the Jainas are known as Siddhanta or Agama.

2) The language of the earliest Jain texts is eastern dialect of Pali known as Ardha Magadhi.

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

Ans. C

Q.55 Which one among the following statements regarding the Government of India Act, 1935 is not correct?

A) Provincial Autonomy came into existence

B) Bicameral legislature were provided in six provinces

C)The principles of communal electorates and weightage were further extended

D) The States were compelled to enter the Federation

Ans. D

The “Government of India Act 1935” was originally passed in August 1935 and is said to have been the longest (British) Act of Parliament ever enacted by that time. Because of its length, the Act was retroactively split by the Government of India (Reprinting) Act 1935 into two separate Acts:

·         The Government of India Act 1935

·         The Government of Burma Act 1935

References in literature on Indian political and constitutional history are usually to the shortened Government of India Act 1935, rather than to the text of the Act as originally enacted.

 The most significant aspects of the Act were: 

·         The grant of a large measure of autonomy to the provinces of British India (ending the system of dyarchy introduced by the Government of India Act 1919).

·         Provision for the establishment of a “Federation of India”, to be made up of both British India and some or all of the “princely states”.

·         The introduction of direct elections, thus increasing the franchise from seven million to thirty-five million people.

·         A partial reorganization of the provinces:

o    Sindh was separated from Bombay.

o    Bihar and Orissa were split into separate provinces of Bihar and Orissa.

o    Burma was completely separated from India.

o    Aden was also detached from India, and established as a separate colony.

o    Membership of the provincial assemblies was altered so as to include more elected Indian representatives, who were now able to form majorities and be appointed to form governments.

o    The establishment of a Federal Court.

However, the degree of autonomy introduced at the provincial level was subject to important limitations:

·         The Provincial Governors retained important reserve powers, and

·         The British authorities also retained a right to suspend responsible government.

 The parts of the Act intended to establish the Federation of India never came into operation, due to opposition from rulers of the princely states. The remaining parts of the Act came into force in 1937, when the first elections under the Act were also held

Q.56 Who among the following was not associated with the activities of the Theosophical Society?

A) Madame H.P. Blavatsky

B) Mr.A.O. Hume

C) Col.H.S.Olcott

D) Mrs.Annie Besant

Ans. B

Q.57 Akbar’s Ibadat Khana was the place where-

A) military strategy was decided

B) inter-faith debates and discussions were held

C) Akbar preached his principles of Sulh-i-lad

D) fine arts were practiced

Ans. B

Q.58 Ritual kinship was the hallmark of Vijayanagar rule. Vijayanagar rulers claimed to have ruled on behalf of which one among the following shrines ?

A) Vithala

B) Tirupati

C) Virupaksha

D) Mallikarjuna

Ans. C

Q.59 The establishment of Mughal rule in India

1. strengthened urbanization

2. strengthened inter-urban contact in riparian North India

3. increased India’s sea trade

4. decreased the risk of carrying long-distance trade

Select the correct answer using the code given below.

A) 1, 2 and 3

B) 1 and 2 only

C) 3 and 4

D) 1 only

Ans. A

Q.60 Which among the following are considered as the bio-fuels ?

1) Curcas

2) Jatropha

3) Karanje

Codes:

A) 1 & 3

B) 2 & 3

C) 1 & 2

D) 1,2,3

Ans. D

A biofuel is a fuel that is produced through contemporary biological processes, such as agriculture and anaerobic digestion, rather than a fuel produced by geological processes such as those involved in the formation of fossil fuels, such as coal and petroleum, from prehistoric biological matter. Biofuels can be derived directly from plants, or indirectly from agricultural, commercial, domestic, and/or industrial wastes. Renewable biofuels generally involve contemporary carbon fixation, such as those that occur in plants ormicroalgae through the process of photosynthesis. Other renewable biofuels are made through the use or conversion of biomass(referring to recently living organisms, most often referring to plants or plant-derived materials). This biomass can be converted to convenient energy containing substances in three different ways: thermal conversion, chemical conversion, and biochemical conversion. This biomass conversion can result in fuel in solid, liquid, or gas form. This new biomass can also be used directly for biofuels.

Q.61 Which among the following are positively charged ?

1) Electrons

2) Protons

3) Neutrons

Codes:

A) 1 & 3

B) 2 & 3

C) Only 2

D) 1,2,3

Ans. B

Protons are positively charged and so would be deflected on a curving path towards the negative plate.

Electrons are negatively charged and so would be deflected on a curving path towards the positive plate

Neutrons don't have a charge, and so would continue on in a straight line

Q.62 Which among the following are an example of chemical changes ?

1) Rusting of Iron

2) Boiling of water

3) Dissolving of sugar in water

Codes:

A) 1 & 3

B) Only 1

C) 2 & 3

D) Only 2

Ans. B

Boiling of water & Dissolving of sugar in water are physical changes

Q.63 Which of the following radio isotopes are used in treatment of cancer ?

1) Iodine-131

2) Cobolt-60

3) Arsenic-74

Codes:

A) 1 & 3

B) 2 & 3

 C) 1 & 2

D) 1,2,3

Ans. C

Arsenic-74 is used to detect tumour

Q.64 With reference to the Indian Missile Programme, which among the following statements are correct ?

1) Akash is a surface to air missile with a range of 60 kilometers

2) Nag is a fire-and-forget anti-tank missile, with a 5-7 kilometer range

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

DRDO launched an ambitious programme named IGMDP for the development of 5 different missiles i.e., Prithvi, Agni, Trishul, Akash and Nag

Q.65 Which among the following is the strike range of Agni-I missile ?

A) 700 – 800 km

B) 600 – 700 km

C) 500- 600 km

D) 400 – 500 km

Ans. A

Q.66 Which one of the following is the correct combination of subcellular structures in order of their relative size found in plant and animal cells ?

A) Nucleus > Mitochondria > Chloroplast > Chromosomes

 B) Nucleus > Chromosomes > Mitochondria > Chloroplast

 C) Chloroplast > Nucleus > Chromosomes >Mitochondria

 D) Chloroplast > Nucleus > Mitochondria > Chromosomes

Ans. D

Q.67 Wind plays a role as pollinating agent for the following plants, except

A) maize

B) bamboo

 C) grass

 D) onion

Ans. D

Q.68 Which among the following can act as 'biological washing powder' ?

A) Inorganic detergent

B) Dehydrogenases

C) Protease and lipase

D) Sandalwood powder

Ans. C

Q.69 'Chlorosis' in plants occurs due to deficiency in magnesium. This is due to

A) inability of plants to make chlorophyll

B) ionic imbalance of chloride

C) reduced water absorption through roots

D) weakening of stems

Ans. A

Q.70 Second largest bench constituted by the Supreme Court till date was in –

A) Golaknath case

B) Minerva Mills case

C) T.M.A. Pai Foundation case

D) Bank Nationalisation case

Ans. A

Golaknath v. State Of Punjab (1967), or simply the Golaknath case, was a 1967 Indian Supreme Court case, in which the Court ruled that Parliament could not curtail any of the Fundamental Rights in the Constitution.

Issues involved

Whether Amendment is a “law” under the meaning of Article 13(2)?

Whether Fundamental Rights can be amended or not?

Q.71 Consider the following statements:

1) The Public Interest Litigation permits public minded citizens to reach the court of law.

2) The public minded people may seek justice for the person who is unable to reach the court of law for any reasons.

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

Q.72 Which of the following is not an expenditure charged on the Consolidated Fund Of India?

A) Allowances of Deputy Chairman of Council of States

B) Pension payable to Judges of High courts

C) Salary & Pension of the members of Election Commission of India

D) Debt charges for which Government of India is liable

Ans. A

Q.73 Consider the following statements:

1) The President or a Governor cannot be sued in a Court of Law for any act.

2) The President can be impeached & the Governors may be dismissed for Unconstitutional acts done.

Codes:

A) Only 1

B) only 2

C) Both are correct

D) Both are incorrect

Ans. C

Q.74 Telugu-Ganga project represents an exercise of Inter-state cooperation between:

A) Andhra Pradesh &  Tamil Nadu

B) Pondicherry & Tamil Nadu

C) Andhra Pradesh & Maharashtra

D) Andhra Pradesh & Karnataka

Ans.  A

Q.75 Which of the following statements about National Human Rights Commission (NHRC) is/are correct?

1. It is an alternative non-judicial channel.

2. Victims of human rights violations can seek reparation through NHRC.

3. It cannot grant immediate relief.

4. It has the direct power of enforcement.

Select the correct answer using the code given below.

A) 1 only

B) 1 and 2 only

C) 1, 2 and 4

D) 2, 3 and 4

Ans. D

Q.76 Consider the following statements :

1) Only a member of the Rajya Sabha can be made chairman of the Rajya Sabha

2) Only a member of the Lok Sabha can be made cabinet minister

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. D

Chairman of the Rajya Sabha is Vice President of India, now you can simply eliminate the wrong options.

Q.77 Which of the following is the highest decision authority in India on development matters ?

A) Union cabinet

B) Prime minister’s office

C) National Development Council

D) None of the above

Ans. C

Q.78 How many women Lok Sabha speakers has India has so far ?

A) 1

B) 2

C) 3

D) 4

Ans. B

Q.79 Consider the following statements :

1) Judges of High Courts are appointed by the Governor of State concerned

2) Speaker of the state assembly is appointed by the chief minister of the state concerned

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. D

Judges of High Courts are appointed by the President of India

Speaker of the state assembly is appointed by the members of Vidhan Sabha.

Q.80 Match list I & List II & select the correct answer using the codes given below :

List-I

Authors

a) Javier Moro

b) Afsar Ahmed

c) Sudha Pai and Avinash Kumar

d) Khurshid Mahmood Kasuri

List-II

Books

1. Taj Mahal OR Mummy Mahal

2. El Sari Rojo

3. The Indian Parliament

4. Neither a Hawk nor a Dove

Codes:

A) a-1,b-2,c-4,d-3

B) a-1,b-2,c-3,c-4

C) a-2,b-1,c-3,d-4

D) a-2,b-1,c-4,d-3

Ans. C 

Q.81 With reference to the Maternity Benefit Act, 1961, which among the following are correct ?

1. It regulates the employment of women for certain period before and after child-birth

2. It extends to the whole of India

3. It provides full and healthy maintenance of women and her child when she is not working

Codes:

A) 1 & 3

B) 2 & 3

C) 1 & 2

D) 1,2,3

Ans. D

Q.82 With reference to the Employee’s State Insurance Corporation, which among the following are correct ?

1. It provides cash benefits to the insured persons in times of physical distress

2. Sickness & temporary disablement are exempted under this scheme

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

Q.83 Which of the following is/are included in the Priority sectors ?

1) Small venture capital funds

2) Micro credit

3) Consumption loans for the weaker sections

4) Retail trade

5) Self employed Individuals

Codes:

A) 1,3,4,5

B) 2,3,4,5

C) Only 1 & 2

D) All are correct

Ans. D

Explanation

Q. What is meant by Priority Sector?

Priority sector refers to those sectors of the economy which may not get timely and adequate credit in the absence of this special dispensation. Typically, these are small value loans to farmers for agriculture and allied activities, micro and small enterprises, poor people for housing, students for education and other low income groups and weaker sections.

Q. What are the different categories under priority sector?

Priority Sector includes the following categories:

(i) Agriculture
(ii) Micro and Small Enterprises
(iii) Education
(iv) Housing
(v) Export Credit
(vi) Others

Q. What constitutes 'Direct Finance' for Agricultural Purposes?

(i) Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of individual farmers] engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture.

(ii) Loans to corporates including farmers' producer companies of individual farmers, partnership firms and co-operatives of farmers directly engaged in Agriculture and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericultureup to an aggregate limit of `2 crore per borrower.

(iii) Loans to small and marginal farmers for purchase of land for agricultural purposes.

(iv) Loans to distressed farmers indebted to non-institutional lenders.

(v) Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi Purpose Societies (LAMPS) ceded to or managed/ controlled by such banks for on lending to farmers for agricultural and allied activities.

Q. What constitutes 'Indirect Finance' to Agriculture?

(i) If the aggregate loan limit per borrower is more than `2 crore in respect of para. (4) (ii) above, the entire loan will be treated as indirect finance to agriculture.

(ii) Loans upto `5 crore to Producer Companies set up exclusively by only small and marginal farmers under Part IXA of Companies Act, 1956 for agricultural and allied activities.

(iii) Bank loans to Primary Agricultural Credit Societies (PACS), Farmers’ Service Societies (FSS) and Large-sized Adivasi Multi Purpose Societies (LAMPS).

Q. What constitutes Micro and Small Enterprises under priority sector?

Bank loans to Micro and Small Manufacturing and Service Enterprises, provided these units satisfy the criteria for investment in plant machinery/equipment as per MSMED Act 2006.

Manufacturing sector
Enterprises	Investment in plant and machinery
Micro Enterprises	Do not exceed twenty five lakh rupees
Small Enterprises	More than twenty fivelakh rupees but does not exceed five crore rupees
Enterprises	Investment in equipment
Micro Enterprises	Does not exceed ten lakh rupees
Small Enterprises	More than ten lakh rupees but does not exceed two crore rupees

Q.84 Which of the following is/are correct regarding Financial Inclusion ?

1) It provides help to the vulnerable groups to eliminate poverty

2) They are helpful through the secured savings, Insurance products & Payment services

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

What is 'Financial Inclusion' ?
"Financial inclusion is delivery of banking services at an affordable cost ('no frills' accounts,) to the vast sections of disadvantaged and low income group. Unrestrained access to public goods and services is the sine qua non of an open and efficient society. As banking services are in the nature of public good, it is essential that availability of banking and payment services to the entire population without discrimination is the prime objective of the public policy."

RBI's Policy on 'Financial Inclusion' :

When bankers do not give the desired attention to certain areas, the regulators have to step in to remedy the situation. This is the reason why the Reserve Bank of India places a lot of emphasis on financial inclusion.

With a view to enhancing the financial inclusion, as a proactive measure, the RBI in its Annual Policy Statement of the year 2005-2006, while recognizing the concerns in regard to the banking practices that tend to exclude rather than attract vast sections of population, urged banks to review their existing practices to align them with the objective of financial inclusion.

No-Frills' Account :

In the Mid Term Review of the Policy (2005-06), RBI exhorted the banks, with a view to achieving greater financial inclusion, to make available a basic banking 'no frills' account either with 'NIL' or very minimum balances as well as charges that would make such accounts accessible to vast sections of the population. The nature and number of transactions in such accounts would be restricted and made known to customers in advance in a transparent manner. All banks are urged to give wide publicity to the facility of such 'no frills' account, so as to ensure greater financial inclusion.

'Simplification of 'Know Your Customer (KYC)' Norms :

Banks are required to provide a choice of a 'no frills account' where the minimum balance is nil or very small but having restrictions on number of withdrawals, etc., to facilitate easy access to bank accounts.

Further, in order to ensure that persons belonging to low income group both in urban and rural areas do not face difficulty in opening the bank accounts due to the procedural hassles, the 'KYC' procedure for opening accounts for those persons who intend to keep balances not exceeding rupees fifty thousand (Rs. 50,000/-) in all their accounts taken together and the total credit in all the accounts taken together is not expected to exceed rupees one lakh (Rs. 1,00,000/) in a year has been simplified to enable those belonging to low income groups without documents of identity and proof of residence to open banks accounts. In such cases banks can take introduction from an account holder on whom full KYC procedure has been completed and has had satisfactory transactions with the bank for at least six months. Photograph of the customer who proposes to open the account and his address need to be certified by the introducer.

Q.85 Which of the following is/are included in the Capital profits ?

1) Profit on redemption of debentures

2) Profit on revaluation of fixed assets

3) Profit on sale of fixed assets

Codes:

A) 1 & 3

B) 2 & 3

C) 1 & 2

D) 1,2,3

Ans. D

In terms of accounting, most methods involve segregating capital profit from other types of profit generated by the business. This is because most national revenue agencies have specific tables and formulas for determining the amount of taxes due on different kinds of profits. By arranging the accounting books so that it is easy to extract the data relevant to the sale of the asset, the task of applying those formulas and tables to the capital profit generated is less confusing. The end result is the ability to correctly report the profit and accurately calculate the tax obligation associated with that profit.

Since the sale of capital assets often has the goal of generating cash that can be used to settle some pressing debt obligation, or to provide funding for some type of new project, there is a good chance that at least some capital profit will result. Companies typically sell off assets that are not necessary to the core operation of the business, but that can be sold at or near current market value. In the best of scenarios, that current market value is actually more than the original purchase price, and is also enough to offset any maintenance or other costs associated with owning the asset. When this is the case, the potential for achieving capital profit is very high.

As with other types of profit, the sale of a capital asset must result in the owner receiving some type of benefit above and beyond the resources used to initially acquire and maintain the asset during that time of ownership. This means that selling a capital asset does not automatically mean that capital profit is generated. The identification of a profit margin on this type of activity must be in compliance with applicable tax laws and how those laws relate to the owner’s expenses and the amount of funds received from the sale. For this reason, it is important to evaluate each individual sale of a capital asset, comparing the circumstances surrounding that sale with tax laws that apply for the time and place where the transaction occurs.

Q.86 In context with the Preference shares , consider the following statements:

1) These are the liquid assets as they can be traded in the stock exchange

2) These are considered as the safer investments than the equity shares

Codes:

A) only 1

B) only 2

C) Both are correct

D) both are incorrect

Ans. B

These are not the liquid assets as they can not be traded in the stock exchange

Company stock with dividends that are paid to shareholders before common stock dividends are paid out. In the event of a company bankruptcy, preferred stock shareholders have a right to be paid company assets first. Preference shares typically pay a fixed dividend, whereas common stocks do not. And unlike common shareholders, preference share shareholders usually do not have voting rights. 

Also referred to as preferred stock

There are four types of preference shares: Cumulative preferred, for which dividends must be paid including skipped dividends; non-cumulative preferred, for which skipped dividends are not included; participating preferred, which give the holder dividends plus extra earnings based on certain conditions; and convertible, which can be exchanged for a specified number of shares of common stock.

Q.87 Statements:

1) Current market value of issued shares symbolizes Market capitalization of a Company

2) Companies may convert their profit into share capital through issue of Bonus Shares

Codes:

A) only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

Q.88 Statements:

1) India Agriculture has enjoyed a large amount of subsidies compared to the developed countries.

2) There is a history of Fiscal Deficit in Central Government budgets in India.

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. B

Q.89 Urban growth is indicative of:

1) Rise in total urban population

2)Rise in number of urban centres

3) Rise in the total population of a country

4) Rise in the income from Urban areas

Codes:

A) 1 & 2

B) 2 & 3

C) 1,2,3

D) 1,2,3,4

Ans. A

Urban growth is an urban area or community in which the population of the area increases. In those cases where there is a growth in population in an urban area some factors need to pondered, how will it benefit my community, how will it hurt my community and will extra services or businesses be needed to meet the demands of the growth within the area.

Q.90 The price of any currency in International Market is decided by:

1) World Bank

2) Stability of govt of concerned country

3) Demand for goods/services provided by country

Options:

A) 1 & 3

B) 1 & 2

C) 2 & 3

D) 1,2,3

Ans. C

Q.91 Consider the following statements:

1) Fiscal Deficit is generally greater than budgetary deficit

2) Fiscal deficit is the borrowing from reserve Bank of India plus other liabilities of the Govt to meet its expenditure.

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. C

Q.92 Which among the following determines the nature & size of Industry?

1) Business turnover

2) Labour force

3) Power consumption

4) Capital investment

Codes:

A) 1,3,4

B) 1,2,4

C) 2,3,4

D) 1,2,3,4

Ans. C

Q.93 Consider the statements regarding to New pension system :

1) It is mandatory to all the new recruits to Central Government Services.

2) Each individual can have voluntary tier-II withdrawable account at his option.

3) In this scheme there is no limit to invest of pension wealth.

4) The option of joining news system will also  be available to state Government.

5) Mandatory programmes under Employee Provident fund Organisation would continue to operate.

Codes:

A) 1,3,4,5

B) 1,2,4,5

C) 2,4,5

D) All are correct

Ans. C

Government of India established Pension Fund Regulatory and Development Authority (PFRDA)- External website that opens in a new window on 10^thOctober, 2003 to develop and regulate pension sector in the country. The National Pension System (NPS) was launched on 1st January, 2004 with the objective of providing retirement income to all the citizens.NPS aims to institute pension reforms and to inculcate the habit of saving for retirement amongst the citizens.

Initially, NPS was introduced for the new government recruits (except armed forces). With effect from 1^st May, 2009, NPS has been provided for all citizens of the country including the unorganised sector workers on voluntary basis.

Additionally, to encourage people from the unorganised sector to voluntarily save for their retirement the Central Government launched a co-contributory pension scheme, 'Swavalamban Scheme- External website that opens in a new window' in the Union Budget of 2010-11. Under Swavalamban Scheme- External website that opens in a new window, the government will contribute a sum of Rs.1,000 to each eligible NPS subscriber who contributes a minimum of Rs.1,000 and maximum Rs.12,000 per annum. This scheme is presently applicable upto F.Y.2016-17.

NPS offers following important features to help subscriber save for retirement:

The subscriber will be allotted a unique Permanent Retirement Account Number (PRAN). This unique account number will remain the same for the rest of subscriber's life. This unique PRAN can be used from any location in India.

PRAN will provide access to two personal accounts:

Tier I Account: This is a non-withdrawable account meant for savings for retirement.

Tier II Account: This is simply a voluntary savings facility. The subscriber is free to withdraw savings from this account whenever subscriber wishes. No tax benefit is available on this account.

Main Features and Architecture of the National Pension System

The National pension system would be based on defined contributions. It will use the existing network of bank branches and post offices etc. to collect contributions. There will be seamless transfer of accumulations in case of change of employment and/or location. It will also offer a basket of investment choices and Fund managers. The National pension system will be voluntary.

The system would, however, be mandatory for new recruits to the Central Government service (except the armed forces). The monthly contribution would be 10 percent of the salary and DA to be paid by the employee and matched by the Central Government. However, there will be no contribution from the Government in respect of individuals who are not Government employees. The contributions and returns thereon would be deposited in a non-withdrawable pension account. The existing provisions of defined benefit pension and GPF would not be available to the new recruits in the central Government service.

    In addition to the above pension account, each individual can have a voluntary tier-II withdrawable account at his option. Government will make no contribution into this account. These assets would be managed in the same manner as the pension. The accumulations in this account can be withdrawn anytime without assigning any reason. 

Individuals can normally exit at or after age 60 years from the pension system. At exit, the individual would be required to invest at least 40 percent of pension wealth to purchase an annuity. In case of Government employees, the annuity should provide for pension for the lifetime of the employee and his dependent parents and his spouse at the time of retirement. The individual would receive a lump-sum of the remaining pension wealth, which she would be free to utilize in any manner. Individuals would have the flexibility to leave the pension system prior to age 60. However, in this case, the mandatory annuitisation would be 80% of the pension wealth.

 There will be one or more central record keeping agency (CRA), several pension fund managers (PFMs) to choose from which will offer different categories of schemes.

 The participating entities (PFMs, CRA etc.) would give out easily understood information about past performance & regular NAVs, so that the individual would able to make informed choices about which scheme to choose.

Q.94 In context with Bancassurance consider the following statements :

1) It is the way of distribution of  Insurance Products through bank distribution channel.

2) Distribution involves selling of Insurance products & services.

3) It considers the Demographic , economic & Legislative information of country.

4) It increases the  market penetration, premium turnover, reduced price & high quality

products.

Codes:

A) 1,2,4

B) 1,3,4

C) only 2 & 3

D) 1,2,3,4

Ans. D

Definition: Bancassurance means selling insurance product through banks. Banks and insurance company come up in a partnership wherein the bank sells the tied insurance company's insurance products to its clients.

Description: Bancassurance arrangement benefits both the firms. On the one hand, the bank earns fee amount (non interest income) from the insurance company apart from the interest income whereas on the other hand, the insurance firm increases its market reach and customers. The bank acts as an intermediary, helping insurance firm reach its target customer in order to increase its market share.

Q.95 In Context with Social Security Scheme consider the following statements:

1) This Fund has been administered by LIC  to meet the needs of the all sections of the society.

2) Natural death & Death due to Accident are also covered under this scheme.

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. B

Why Do We Need Social Security

Social Security protects not just the subscriber but also his/her entire family by giving benefit packages in financial security and health care. Social Security schemes are designed to guarantee at least long-term sustenance to families when the earning member retires, dies or suffers a disability. Thus the main strength of the Social Security system is that it acts as a facilitator - it helps people to plan their own future through insurance and assistance. The success of Social Security schemes however requires the active support and involvement of employees and employers.
As a worker/employee, you are a source of Social Security protection for yourself and your family. As an employer you are responsible for providing adequate social security coverage to all your workers.

Background information on Social Security

India has always had a Joint Family system that took care of the social security needs of all the members provided it had access/ownership of material assets like land. In keeping with its cultural traditions, family members and relatives have always discharged a sense of shared responsibility towards one another. To the extent that the family has resources to draw upon, this is often the best relief for the special needs and care required by the aged and those in poor health.

However with increasing migration, urbanization and demographic changes there has been a decrease in large family units. This is where the formal system of social security gains importance. However, information and awareness are the vital factors in widening the coverage of Social Security schemes.
Social Security Benefits in India are Need-based i.e. the component of social assistance is more important in the publicly-managed schemes- In the Indian context, Social Security is a comprehensive approach designed to prevent deprivation, assure the individual of a basic minimum income for himself and his dependents and to protect the individual from any uncertainties. The State bears the primary responsibility for developing appropriate system for providing protection and assistance to its workforce. Social Security is increasingly viewed as an integral part of the development process.  It helps to create a more positive attitude to the challenge of globalization and the consequent structural and technological changes.  

Workforce In India

The dimensions and complexities of the problem in India can be better appreciated by taking into consideration the extent of the labour force in the organized and unorganized sectors. The latest NSSO survey of 1999-2000 has brought out the vast dichotomy between these two sectors into sharp focus.  While as per the 1991 census, the total workforce was about 314 million and the organized sector accounted for only 27 million out of this workforce, the NSSO’s survey of 1999-2000 has estimated that the workforce may have increased to about 397 million out of which only 28 million were in the organized sector.  Thus, it can be concluded from these findings that there has been a growth of only about one million in the organized sector in comparison the growth of about 55 million in the unorganized sector.

Organized and Unorganized Sectors
The organized sector includes primarily those establishments which are covered by the Factories Act, 1948, the Shops and Commercial Establishments Acts of State Governments, the Industrial Employment Standing Orders Act, 1946 etc.  This sector already has a structure through which social security benefits are extended to workers covered under these legislations.

The unorganized sector on the other hand, is characterized by the lack of labour law coverage, seasonal and temporary nature of occupations, high labour mobility, dispersed functioning of operations, casualization of labour, lack of organizational support, low bargaining power, etc. all of which make it vulnerable to socio-economic hardships.    The nature of work in the unorganized sector varies between regions and also between the rural areas and the urban areas, which may include the remote rural areas as well as sometimes the most inhospitable urban concentrations. In the rural areas it comprises of landless agricultural labourers, small and marginal farmers, share croppers, persons engaged in animal husbandry, fishing, horticulture, bee-keeping, toddy tapping, forest workers, rural artisans, etc. where as in the urban areas, it comprises mainly of manual labourers in construction, carpentry, trade, transport, communication etc. and also includes street vendors, hawkers, head load workers, cobblers, tin smiths, garment makers, etc.

Synopsis Of Social Security Laws

The principal social security laws enacted in India are the following:

1.    The Employees’ State Insurance Act, 1948 (ESI Act) which covers factories and establishments with 10 or more employees and provides for comprehensive medical care to the employees and their families as well as cash benefits during sickness and maternity, and monthly payments in case of death or disablement.

2.    The Employees’ Provident Funds & Miscellaneous Provisions Act, 1952 (EPF & MP Act) which applies to specific scheduled factories and establishments employing 20 or more employees and ensures terminal benefits to provident fund, superannuation pension, and family pension in case of death during service. Separate laws exist for similar benefits for the workers in the coal mines and tea plantations.

3.    The Employees' Compensation Act, 1923 (WC Act), which requires payment of compensation to the workman or his family in cases of employment related injuries resulting in death or disability.

4.    The Maternity Benefit Act, 1961 (M.B. Act), which provides for 12 weeks wages during maternity as well as paid leave in certain other related contingencies.

5.    The Payment of Gratuity Act, 1972 (P.G. Act), which provides 15 days wages for each year of service to employees who have worked for five years or more in establishments having a minimum of 10 workers.

Separate Provident fund legislation exists for workers employed in Coal Mines and Tea Plantations in the State of Assam and for seamen.

New Initiatives –

·         The various Central Acts on Social Security are being examined in the light of the recommendations of the 2nd National Commission on Labour. Relevant amendments are proposed in the EPF and MP Act as also the ESI Act. The consultation process is on with reference to the amendment suggestions received in case of the Maternity Benefit Act and the Workmen’s Compensation Act.

·         Innovative measures are proposed in the running of the Social Security Schemes of EPFO and ESIC. This includes flexible benefit schemes tailored to the specific requirements of different segments of the population.

Summary Of Present Initiatives In Working Of EPFO & ESIC

The profiles of the Employees’ Provident Fund Organization and the Employees’ State Insurance Corporation are being changed towards greater accessibility and client satisfaction.

The EPFO extends to the entire country covering over 393824 establishments. At present, over 3.9 crore EPF Members and their families get benefits under the social security schemes administered by the EPFO.  The total corpus of the EPF Scheme 1952, EDLI Scheme, 1976 and Employees Pension Scheme 1995 together amounts to about Rs.1,39,000 crores.  Over the years, the volume of service rendered to subscribers as well as investments made, etc. by EPFO have grown manifold.  With a view to provide better services to subscribers and employers, the organization has launched the Project RE-INVENTING EPF, INDIA since June, 2001.  The prime objectives of this Project are to provide the subscribers better and efficient services, to help the employers by reducing the cost of compliance and to benefit the organization to register geometric growth in all fields.  An important part of this Project is the allotment of the UNIQUE IDENTIFICATION NUMBER-the SOCIAL SECURITY NUMBER to the EPF subscribers, issuing of BUSINESS NUMBERS to the employers and Business Process Re-engineering.

The strategy for implementation has been evolved and the allotment of the Social Security Number has begun with the entire activity being carried out in smaller phases for effective data collection.  The criteria considered for the allotment of SSN include the centralized control of Uniqueness, ensuring the least manual intervention during allotment and near 100% Uniqueness accuracy levels.  The Social Security Number in a nutshell is a big effort towards solving the problem of providing social protection to migrant labour and to make the data base of EPFO adaptable to the present trend of high job mobility among workers.          

Social security is essential for the well being of people and society.  It is the basic human right and its fulfillment will contribute to achieving various developmental goals of nation.  Social Security measures have far reaching benefits in the form of improving and bringing sense of pride and self respect amongst the citizens.  Such measures also help in providing the minimal level  of providing protection against health and life hazards in work situations. It can progressively   pay standard to social security welfare measures involving provisions of better Health Care, Maternity Care, and Old Age Pension etc.

Social Security to the workers in the organized sector is provided through five Central Acts namely :-

1.    Employees’ Provident Fund and Miscellaneous Provisions Act, 1952.

2.    Employees’ State Insurance Act, 1948.

3.    Payment of Gratuity Act, 1972.

4.    Maternity Benefit Act, 1961.

5.    Employee’s Compensation Act, 1923.

 Social Security of the formal sector workers is provided through the instrumentality of Employees’ Provident Fund Organisation and Employees’ State Insurance Corporation.

Employees’ Provident Fund Organisation (EPFO)

The EPFO expends to the entire country covering over 7 lacs establishments.  At present, over 6.16 crores EPF members and their families get benefits under Social Security Schemes administered by EPFO.  The total investment corpus as on 31st March, 2011 amounts to Rs. 466370 crores. Over the years, the volume of service rendered to subscribers as well as investments made etc. by EPFO have grown many folds.  EPFO has focused its effort on automation of the work processes to achieve better efficiency and improved service delivery to its members.  The work done in this direction by EPFO is given below:-

·         All offices of EPFO barring one at Keonjhar in Odisha have been computerized.

·         With effect from the financial Year 2012-2013 a facility for electronic submission of statutory EPF returns has been introduced.

·         Employers can also remit their EPF dues electronically if they have a corporate internet bank account with the State Bank of India.

·         Employers not having a corporate  internet bank account  with SBI  shall have to pay EPF dues through cheque/DD

·         Once the above returns are received electronically and payment is confirmed member accounts are being updated on monthly basis.

·         Establishments can also view and print the annual PF account slips of its employees.

·         Provisions are underway to enable the individual employees to register and view his/her EPF account online.

·         For facilitating the employers to comply with statutory provisions of EPF and file necessary returns, an E-Return Tool has been made available.

·         The members can now get their PF balances on their mobile phones after registering on www.epfindia.gov.in

·         Members can also track their claims and payment status online as well as receive sms s for same.

·         EPF amounts are being remitted electronically through NEFT to beneficiaries bank accounts.

A proposal for comprehensive amendment of EPF & MP Act, 1952 is under examination in Ministry of Labour and Employment under consultation with EPFO for improving scale of benefits to the beneficiaries.

During 2011-12, special emphasis was laid on issue of Annual Accounts Slips. 16.62 crores Annual Accounts was updated during the year against the corresponding figure   of 6.06 crores during 2010-11.  96 per cent of the Annual Accounts slips upto five years from 2011-2012, have been issued. The Annual Accounts for the year 2011-2012 are likely to be liquidated by 30th September, 2012.   During 2011-12, 90.5 lacs EPF claims were settled, this been 24.84 per cent more than the corresponding figure last year.  During 2011-12 Rs. 60648 crores were received as contribution, Whereas Rs. 28271 crores were paid out as benefits to members.  More than 36 lacs pensioners are being paid monthly pensions by EPFO.

Employees’ State Insurance Corporation (ESIC)

The Employees’ State Insurance Scheme provides need based social security benefits to insured workers in the organized sector. As in the case of the EPFO, the ESIC has also taken up the daunting task of tailoring different benefit schemes for the needs of different  groups. The scheme, which was first introduced at two centers in 1952 with an initial coverage of 1.20 lakh workers, today covers 1.55 crore  workers in about 790 centers in the country. It benefits about 6.02 crore beneficiaries including the family workers of the insured persons, across the country.  The scheme is being gradually to cover new centers and steps are being taken for creation of requisite infrastructure for providing medical care to a larger number of insured persons and their families. While the cash benefits under the scheme are administered through a network of about 799 Branch offices and pay offices, medical care is provided through 150 ESI Hospitals, 42 ESI Annexes, 1403/93 ESI Dispensaries / ISM Units and 1447 Clinics of Insurance Medical Practitioners.  The total number of medical officers under the Scheme is about 6536.

There have been a number of developments in the ESIS during the past three years. Each year, it is extended to new areas to cover additional employees. The new employees covered in 2009-10, 2010-11 and 2011-12 are 1.23 lakh,   1.14 lakhs and 1.58 lakh  respectively. Low paid workers in receipt of daily wages up to Rs. 100/- have been exempted from payment of their share of contribution. Earlier this limit was Rs. 70/- . This measure has benefited about eight lakh insured workers across the country.  In order to provide relief to insured persons suffering from chronic and long term diseases, the list of diseases for which Sickness  Benefit is available for an extended period up to two years at an enhanced rate of 70% of daily wages, was enlarged by adding four new diseases, keeping in view the international classification of disease profiles and the quantum of malignancies of some diseases which had come to light over the last few years. 

In order to improve the standard of medical care in the States, the amount reimbursable to the State Governments for running the medical care scheme has been increased from Rs.1200/- to Rs. 1500/- Per IP family unit per annum w.e.f. 01.04.2012. The ESIC has formulated action plans for improving medical services under the ESI Scheme with focus on modernization of hospitals by upgrading their emergency and diagnostic facilities, development of departments as per disease profiles, waste management, provision of intensive care services, revamping of grievance handling services, continuing education programme, computerization and up-gradation of laboratories etc.  The ESIC has also taken new initiatives to promote and popularize AYUSH systems of treatment in ESIC Hospitals and Dispensaries in a phased manner.  

ESIC IT Project Panchdeep, one of the largest e-governance projects is under implementation at present. All ESI Institutions are being networked under this project for enabling IPs and their family members to avail ESI benefits anywhere anytime.Two smart cards christened as “Pehchan Cards”, one for insured person and other for the family are being issued. Also, the ESI Act, 1948 has been amended w.e.f. 01.06.2010 for enhancing the Social Security coverage, streamlining the procedure for assessment of dues and for better services to the beneficiaries.

Social Security To The Workers In The Organized Sector

Social Security to the workers in the Organized Sector is provided through five Central Acts, namely, the ESI Act, the EPF & MP Act, the Workmens’ Compensation Act, the Maternity Benefit Act, and the Payment of Gratuity Act.  In addition, there are a large number of welfare funds for certain specified segments of workers such as beedi workers, cine workers, construction workers etc.  

Social Security Coverage In India

Most social security systems in developed countries are linked to wage employment.  In India our situation is entirely different from that obtaining in developed countries.  The key differences are:

·         We do not have an existing universal social security system  

·         We do not face the problem of exit rate from the workplace being higher than the replacement rate.  Rather on the contrary lack of employment opportunities is the key concern,

·          92% of the workforce is in the informal sector which is largely unrecorded and the system of pay roll deduction is difficult to apply.

Even today 1/8^th of the world’s older people live in India.  The overwhelming majority of these depend on transfers from their children.  Addressing social security concerns with particular reference to retirement income for workers within the coverage gap has been exercising policy makers across the world.  In India the coverage gap i.e. workers who do not have access to any formal scheme for old-age income provisioning constitute about 92% of the estimated workforce of 400 million people.  Hence the global debate and evaluation of options for closing the coverage gap is of special significance to India. The gradual breakdown of the family system has only underscored the urgency to evolve an appropriate policy that would help current participants in the labour force to build up a minimum retirement income for themselves. 

Q.96 Consider the following statements:

1) Industrial finance Corporation of India

2) Industrial development Bank Of india

3) Unit trust of India

4) Industrial Credit & Investment Corporation of India

Which of the following is the correct sequence in which they were established ?

A) 1,4,3,2

B) 1,2,3,4

C) 1,3,4,2

D) 1,2,3,4

Ans. A

Q.97 Why Convertibility of Indian rupee is considered as a important goal of the economic liberalization ?

A) Because it helps to attract more foreign capital inflow in India

B) Because it will help to promote exports

C) Because It will help to secure loans from the world financial markets at attractive terms

D) Because it will stabilize its exchange value against major currencies of the World

Ans. D

Q.98 Which among the following offices has not been provided by the Indian Constitution ?

A) Deputy Chairman of Rajya Sabha

B) Deputy Prime Minister

C) Deputy Speaker of state Legislative assembly

D) Deputy prime Minister

Ans. D

Q.99 statements:

1) There is no provision of  impeachment of Chief justice of India in the Constitution.

2) “Consent of the people” in the constitution depicts Majority of the people.

Codes:

A) Only 1

B) Only 2

C) Both are correct

D) Both are incorrect

Ans. B

Q.100 Which of the following statements about Chit Fund in India is/are correct?

1) It is a kind of savings scheme.

2) There are no Acts regulating the activities relating to Chit Funds in India.

Select the correct answer using the code given below :

A) 1 only

B) 2 only

C) Both 1 and 2

D) Neither 1 nor 2

Ans. A 

"Chit means a transaction whether called chit, chit fund, chitty, kuree or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount".

Such chit fund schemes may be conducted by organised financial institutions, or may be unorganised schemes conducted between friends or relatives. In some variations of chit funds, the savings are for a specific purpose. Chit funds also played an important role in the financial development of people of south Indian state of Kerala, by providing easier access to credit. In Kerala, chitty (chit fund) is a common phenomenon practiced by all sections of the society. A company named Kerala State Financial Enterprise exists under the Kerala State Government, whose main business activity is the chitty.