Day-517 | Daily MCQs | UPSC Prelims | ECONOMY

Answer: C
Explanation:
The European Securities and Markets Authority (ESMA), the European Union (EU’s) financial markets regulator and supervisor has derecognised six Indian central counterparties(CCPs).
● Statement 1 is correct: A CCP is authorized by the RBI to operate in India under the Payment and Settlement Systems Act, 2007. Some of the important CCPs in India are the Clearing Corporation of India (CCIL), Indian Clearing Corporation Ltd (ICCL), NSE Clearing Ltd (NSCCL), Multi Commodity Exchange Clearing (MCXCCL) among others.
● Statement 2 is correct: CCP acts as an intermediary in a market transaction –clearing and settlement – by guaranteeing the terms of trade.

Answer: C
Explanation:
Option C is incorrect. All other options A, B & D are correct.
● Option C: Indian origin Ajay Banga is the nominee from the US who has been awarded with Padma Shri in 2016, NOT Padma Vibhushan by India.
● Option A: Generally, a US nominee becomes the World Bank President and the IMF head belongs to the European Union. On the other hand, according to an informal understanding, the Europeans chose to lead the International Monetary Fund, which was also established alongside the World Bank. All Managing Directors of the IMF have been Europeans, with the current one being Bulgaria-born Kristalina Georgieva.
● Option B: The selection is done by the World Bank Executive Directors in which the voting rights depends on the share in the Bank’s capital stock held by the members. The US is the single-largest shareholder in the World Bank, with 16.35 per cent of total capital subscription and over 15 per cent of the votes. The United States is also the only country with veto power over certain changes in the Bank’s structure.
● India is one of the founder members of the IFC. IFC finances investments with its own resources and by mobilizing capital in the International financial markets. 3.38% of the voting power. The India-elected Executive Director represents a constituency with 99,234 votes, equal to 4.11% of voting power.
● Option D: The President of the World Bank Group is also the Chair of the Board of the Executive Directors of the International Bank for Reconstruction and Development (IBRD). The President is also ex officio chair of the Board of Directors of the International Development Association (IDA), International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and of the Administrative Council of the International Centre for Settlement of Investment Disputes (ICSID).
● Ajay Banga has been Selected 14th President of the World Bank for a five-year term beginning June 2, 2023.
● All 13 Presidents of the World Bank so far have been US citizens. IMF’s Bulgaria-born chief Kristalina Georgieva, who had become World Bank’s acting president briefly in 2019, is the only exception.
● Besides her brief stint at the World Bank as its acting president, the World Bank’s all 13 presidents have been from the US. The IMF chief has also tweeted to share her happiness about Banga’s nomination.
● The US is the single-largest shareholder in the World Bank, with 16.35 per cent of total capital subscription and over 15 percent of the votes. The United States is also the only country with veto power over certain changes in the Bank’s structure.
Candidates for the position of World Bank President should meet the following criteria:
● A proven track record of leadership and accomplishment, particularly in development;
● Experience of managing large organizations with international exposure, and a familiarity with the public sector;
● The ability to articulate a clear vision of the World Bank Group’s development mission;
● A firm commitment to and appreciation for multilateral cooperation; and,
● Effective communication and diplomatic skills, impartiality and objectivity in the performance of the responsibilities of the position.

Answer: C
Explanation:
● ₹1 lakh crore Agri Infrastructure Fund for farm-gate infrastructure for farmers was announced on 15.05.2020.
● Under the scheme, Rs. 1 Lakh Crore will be provided by banks and financial institutions as loans with interest subvention of 3% per annum and credit guarantee coverage under CGTMSE for loans up to Rs. 2 Crores. Eligible beneficiaries include farmers, FPOs, PACS, Marketing Cooperative Societies, SHGs, Joint Liability Groups (JLG), Multipurpose Cooperative Societies, Agri-entrepreneurs, Start-ups, and Central/State agency or Local Body sponsored Public-Private Partnership Projects.
● The Scheme will be operational from 2020-21 to 2032-33. Loan disbursement under the scheme will complete in six years, i.e. by the end of Financial Year 2025-26. As on 31st December 2022, ₹14,118 crores have been sanctioned, out of which ₹9117 crores have been disbursed under the scheme. Remaining ₹90,883 crores out of ₹1 lakh crores will be disbursed during the remaining period between 2022-23 and 2025-26. Repayment period covered under the financing facility will be for a maximum period of 7 years including the moratorium period of up to 2 years.
● Eligible Projects: The scheme will facilitate setting up and modernization of key elements of the value chain. Following projects are eligible for all beneficiaries including private entities as well as groups such as FPOs, PACS, SHGs, JLGs, Cooperatives, National and State Level Federation of Co-operatives, FPOs federations, Federations of SHGs, National and State Level Agencies.
● Interest subvention for a loan upto ₹2 crore in one location is eligible under the scheme.
● Participating institutions: All scheduled commercial banks scheduled cooperative banks, Regional Rural Banks (RRBs), Small Finance Banks, Non-Banking Financial Companies (NBFCs) and National Cooperative Development Corporation (NCDC) may participate to provide this financing facility, after signing of Memorandum of Understanding (MoU) with National Bank for Agriculture & Rural Development (NABARD)/DA&FW.
● An online platform will be made available in collaboration with participating lending institutions to provide information and loan sanctioning facilities. Agri Infra fund will be managed and monitored through an online MIS platform.
● The National, State and District Level Monitoring Committees to ensure real-time monitoring and effective feed-back about the implementation of the proposed scheme.

Answer: C
Explanation:
● The Punjab Mandi Board has decided to send a ‘digital form J’ on the WhatsApp number of farmers from 2022 Rabi procurement season .
● The move, aimed at bringing transparency as well as empowering farmers, will make Punjab the first state in the country to provide digitised form J in real time.
● ‘J form’ is the sale receipt of a farmer’s agricultural produce in mandis (grain market). These forms were earlier issued manually by arhtiyas (commission agents) because in Punjab, a majority of farmers sell their crops through such agents only. Also, this form is an income proof for a farmer who sells his crop.
● Before digitisation of the J form, several arhtiyas had the habit of keeping these forms with themselves, instead of providing it to the farmers, which was their right. Hence, many farmers ended up having no record of their income after selling their crops.
● But by getting digitised J form, farmers will now have a clear record of the crop sold and income received in lieu of that and it will save their time as well, ensuring that they do not need to run to arhtiyas to get copies of their sale.
● These forms will be delivered directly on a farmer’s WhatsApp number immediately after a sale is confirmed on the system by the arhtiyas and buyers, who are mainly government procurement agencies.

Answer: C
Explanation:
● A neobank is a digital bank that does not have any branches. Instead of having a physical presence at a set location, neobanking is entirely online. A broad collection of financial service providers, who primarily target tech-savvy customers, comes under the umbrella of neobanking. Basically, a neobank is a fintech firm that provides digital and mobile-first services like payments, debit cards, money transfers, lending, and more.
● Neobanks bridge the gap between the services that traditional banks offer and the evolving expectations of new-age customers. They do this by providing personalised experiences, employing data-driven insights and offering value-added services.
● While traditional banks continue to struggle with bringing their legacy-based infrastructure into the digital age, neobanks leverage its modern digital platforms to analyse customer data and make data-driven decisions. Neobanks can also afford to slash customer fees by a significant amount since they don’t have to bear the expenses of running physical locations.
● Among the user experience enhancements that neobanks offer because of their tech-driven nature, is hassle-free account creation.
● Since Neobanks don’t have a physical office in neighbourhoods, consumers can create their accounts from their mobile devices from the comfort of their home. And, given their technology-driven KYC process, the account can be ready in just a couple of minutes.
● And, how do you avail of a neobank’s service? The same way you order food over Zomato or book an Uber cab. By using an app. Neobanks provide services via its mobile application.
● In India, neobanks don’t have a bank license of their own. Instead, they count on bank partners that are regulated to provide bank-licensed services. The likes of Jupiter, Fi, Niyo, and RazorpayX are currently working in partnerships with traditional banks.