22 October 2022

Q1. With reference to Willow Warbler, consider the following statements:

1. Their natural habitat is in Amazon forests.
2. Their status in IUCN Red List is Least Concerned.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

B – Explanation

• Recently, Willow Warbler has been sighted for the first time in India at VellayaniPunchakkari paddy fields, Kerala. They breed throughout northern and temperate Europe and the Palearctic. Hence, statement 1 is not correct. They migrate to sub-Saharan Africa during early winter. Features: It is one of the longest migrating small birds. The bird weighs around 10 grams and its long wing feathers help it fly long distances.
• The species is affected by drought conditions in its wintering quarters and habitat alterations due to human population expansion.
• IUCN Red List: Least Concerned. Hence, statement 2 is correct.

Q2. With reference to Prompt Corrective Action (PCA), consider the following statements:

1. It aims to check the problem of Non-Performing Assets (NPAs) in the Indian banking sector.
2. It was launched by the Ministry of Finance.
3. Capital to risk weighted assets ratio (CRAR) and Return on Assets (RoA) are some of parameters of PCA.

Which of the statements given above is/are correct?

1.   3 only
2. 2 and 3 only
3. 1 and 3 only
4. 1, 2 and 3

C – Explanation

• Prompt Corrective Action (PCA) aims to check the problem of Non-Performing Assets (NPAs) in the Indian banking sector. Hence statement 1 is correct. The RBI introduced the PCA framework in 2002 as a structured early-intervention mechanism for banks that become undercapitalised due to poor asset quality, or vulnerable due to loss of profitability. RBI can place restrictions on dividend distribution, branch expansion, and management compensation. Hence, statement 2 is not correct. The RBI has specified certain regulatory trigger points, as a part of prompt corrective action (PCA) Framework, in terms of three parameters, i.e. capital to risk weighted assets ratio (CRAR), net non-performing assets (NPA) and Return on Assets (RoA), for initiation of certain structured and discretionary actions in respect of banks hitting such trigger points. Hence, statement 3 is correct.

Q3. Consider the following statements with respect to Vellayani-Punchakkari wetlands:

1. Vellayani-Punchakkari wetlands is located in Tamil Nadu.
2. It is included in the list of Ramsar wetlands of international importance.

Which of the given statement/s is/are INCORRECT?

1. 1 Only
2. 2 Only
3. Both 1 and 2
4. Neither 1 nor 2

C – Explanation

• Vellayani-Punchakkari wetlands is located in Kerala. So, 1 is wrongIt is not a Ramsar site, i.e, it is not included in the list of Ramsar wetlands of international importance. So, 2 is also wrong.
• Hence correct answer is C.

Q4. Consider the following statements with respect to Global Depository Receipt (GDR):

1. It is a depository receipt which is issued by the international depository bank, representing the foreign company’s stock.
2. GDR is denominated in any foreign currency but the underlying shares would be denominated in the local currency of the issuer.
3. GDRs enable a company to access investors in capital markets outside of its home country.

Which of the given statement/s is/are correct?

1. 1 and 2 Only
2. 1 and 3 Only
3. 2 and 3 Only
4. All are correct

D – Explanation

• Global Depository Receipt (GDR) is a negotiable instrument that is denominated in some freely convertible currency.GDR is denominated in any foreign currency but the underlying shares would be denominated in the local currency of the issuer.GDRs enable a company, the issuer, to access investors in capital markets outside of its home country. Several international banks issue GDRs, such as JPMorgan Chase, Citigroup, Deutsche Bank, The Bank of New York Mellon.

Hence all are correct.

Q5. Which of the following is correct about maritime zones according to UNCLOS convention (1982)?

1. The territorial sea extends seaward up to 12 nautical miles from its baselines.
2. The contiguous is an intermediary zone between the territorial sea and the high seas.
3. Which of the statements given above is/are correct?

1.  1 Only
2. 2 Only
3. Both 1 and 2
4. Neither 1 nor 2

C – Explanation

• Recently, the 30 edition of India-Thailand Coordinated Patrol (CORPAT) has been concluded in the Andaman Sea close to the Strait of Malacca. It aims to keep part of the Indian Ocean safe and secure for commercial shipping and international trade and also ensure effective implementation of the United Nations Conventions on Laws of the Sea (UNCLOS).
• Some of the UNCLOS Maritime zones:

Territorial Sea:

• The territorial sea extends seaward up to 12 nautical miles (nm) from its baselines. Hence, statement 1 is correct. The coastal states have sovereignty and jurisdiction over the territorial sea.These rights extend not only on the surface but also to the seabed, subsoil, and even airspace. But the coastal states’ rights are limited by the innocent passage through the territorial sea.

Contiguous Zone:

• The contiguous zone extends seaward up to 24 nm from its baselines.It is an intermediary zone between the territorial sea and the high seas. Hence, statement 2 is correct. The coastal state has the right to both prevent and punish infringement of fiscal, immigration, sanitary, and customs laws within its territory and territorial sea.Unlike the territorial sea, the contiguous zone only gives jurisdiction to a state on the ocean’s surface and floor. It does not provide air and space rights.

Q6. ‘Putrajaya Vision 2040’ has been in the news. Which of the following groupings has adopted this vision?

1. Asia-Pacific Economic Cooperation (APEC)
2. Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC)
3. South Asian Association for Regional Cooperation (SAARC)
4. Association of Southeast Asian Nations (ASEAN)

A – Explanation

• APEC leaders adopted the Putrajaya Vision 2040, a new 20-year growth vision to replace the Bogor Goals named after the Indonesian town where leaders agreed in 1994 to free and open trade and investment.

Hence, option A is correct.

• It recognised the importance of a free, open, fair, non-discriminatory, transparent and predictable trade and investment environment to drive economic recovery at such a challenging time (Covid-19). APEC’s 21 member economies are home to around 2.8 billion people and represented approximately 59% of world GDP and 49% of world trade in 2015. India is not a member of APEC.

Q7. Consider the following statements about the Regional Comprehensive Economic Partnership (RCEP):

1. It is an economic agreement between the ASEAN and Free Trade Agreement (FTA) member partners.
2. India is involved in the RCEP as a member nation of the ASEAN.

Which of the statements given above is/are correct?

1. 1 Only
2. 2 Only
3. Both 1 and 2
4. Neither 1 nor 2

A – Explanation

• The Regional Comprehensive Economic Partnership (RCEP) is a megaregional economic agreement being negotiated since 2012, between ASEAN and Free Trade Agreement (FTA) member partners. Hence, statement 1 is correct.India had dropped out of the RCEP in November 2019in ASEAN+3 summit. Hence, statement 2 is not correct. Although India opted to stay out after walking out of discussions last year, the new trading bloc has made it clear that the door will remain open for India to return to the negotiating table

Q8. Consider the following statements:

1. It is characterized by the violent defence of a racial, ethnic or pseudo-national identity.
2. The defence, by violent means, of a religious identity perceived to be under attack.
3. An individual’s transformation from a moderate, law-abiding citizen into an active, anti-state, violent extremist.

The above statements represent which of the following phenomena?

1. Radicalisation
2. Maoism
3. Terrorism
4. Nationalism

A – Explanation

• The word “radical” refers to change in the fundamental nature of something, thus Radicalism is a set of beliefs or actions of people who advocate thorough or complete political or social reform. Radicalisation refers to the process of an individual’s transformation from a moderate, law-abiding citizen into an active, anti-state, violent extremist.

Types of Radicalisation:

• Right-Wing Extremism: It is characterized by the violent defence of a racial, ethnic or pseudo-national identity, and is also associated with radical hostility towards state authorities, minorities, immigrants and/or left-wing political groups.Politico-Religious Extremism: It results from political interpretation of religion and the defence, by violent means, of a religious identity perceived to be under attack (via international conflicts, foreign policy, social debates, etc.). Any religion may spawn this type of violent radicalization.Left-Wing Extremism: It focuses primarily on anti-capitalist demands and calls for the transformation of political systems considered responsible for producing social inequalities, and that may ultimately employ violent means to further its cause.Hence, option (a) is the correct answer.

Q9. With reference to the Payments Banks, consider the following statements:

1. The Payment Banks cannot set up subsidiaries to undertake non-banking financial services activities.
2. Payment banks cannot advance loans or issue credit cards.
3. These banks do not maintain a Cash Reserve Ratio (CRR).

Which of the statements given above is/are correct?

1. 1 and 2 only
2. 2 only
3. 2 and 3 only
4. 1, 2 and 3

A – Explanation

• Payments banks (Airtel Payments Bank, India Post Payments Bank, etc.) are like any other banks, but operating on a smaller or restricted scale.Credit risk is not involved with the Payments Bank. It can carry out most banking operations but cannot advance loans or issue credit cards. Hence, statement 2 is correct. It can accept demand deposits only i.e. savings and current accounts, not time deposits.The Payment Banks cannot set up subsidiaries to undertake non-banking financial services activities. Hence, statement 1 is correct. The Payments Bank will be registered as a public limited company under the Companies Act, 2013.It is governed by the provisions of the Banking Regulation Act, 1949; RBI Act, 1934; Foreign Exchange Management Act, 1999, Payment and Settlement Systems Act, 2007, other relevant Statutes and Directives.They need to maintain a Cash Reserve Ratio (CRR). Hence, statement 3 is not correct.Required to invest a minimum 75% of its “demand deposit balances” in Statutory Liquidity Ratio (SLR) eligible Government securities/treasury bills with maturity up to one year.Need to hold maximum 25% in current and time/fixed deposits with other scheduled commercial banks for operational purposes and liquidity management.For payments banks intending to convert to a Small Finance Bank (SFB), a track record of 3 years of experience as payments bank may be considered as sufficient.

Q10. With respect to “National Newborn Week”, consider the following statements:

1. The theme of National Newborn Week is ‘Quality, Equity, Dignity for every newborn at every health facility and everywhere.
2. The neonatal period (the first 6 months of life) is the crucial period for child survival.

Which of the statements given above is/are correct?

1. 1 only
2. 2 only
3. Both 1 and 2
4. Neither 1 nor 2

A – Explanation

• Health Minister Dr. Harsh Vardhan chaired an event to mark the National Newborn Week 2020.
• Newborn Care Week is celebrated every year in the country from 15 to 21 November. The aim for celebrating the week is to raise awareness about the importance of the newborn care for child survival and development.
• Hence statement 2 is incorrect: The neonatal period (the first 28 days of life) is the crucial period for child survival; as this period carries the highest risk of deaths per day than any other period during the childhood.
• Hence statement 1 is correct: This year, the theme of National Newborn Week is ‘Quality, Equity, Dignity for every newborn at every health facility and everywhere.

Hence option (a) is correct.