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Monetary Policy Committee

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Monetary Policy Committee

Consider the following statement with reference to the Monetary Policy Committee (MPC):

Monetary Policy Committee (MPC) has been instituted by the Central Government of India under Section 45ZB of the RBI Act, 1934.
The committee comprises six members - three officials of the Reserve Bank of India and three external members nominated by the Government of India.

Choose the correct answer from the codes given below:

	A	Only 1

	B	Only 2

	C	Both 1 and 2

	D	Neither 1 nor 2

Your Ans is

Right ans is C

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

The Reserve Bank of India (RBI) Act, 1934 was amended by Finance Act (India), 2016 to constitute MPC, to bring more transparency and accountability in fixing India's Monetary Policy.
The committee comprises six members - three officials of the RBI and three external members nominated by the Government of India.
The Governor of Reserve Bank of India is the chairperson ex officio of the committee.
The MPC is responsible for fixing the benchmark interest rate in India.
The meetings of the Monetary Policy Committee are held at least 4 times a year.

The resolution adopted by the MPC is published after the conclusion of every meeting of the MPC. Once in every six months, the Reserve Bank is required to publish a document called the Monetary Policy Report to explain: (1) the sources of inflation and(2) the forecast of inflation for 6-18 months ahead.

Related Question

National Commission For Backward Classes

Choose the correct statements with reference to the National Commission for Backward Classes(NCBC):

Article 340 of the Indian Constitution lays down conditions for the appointment of a Commission to investigate the conditions of backward classes.
Article 338B provides authority to National Commission for Backward Classes(NCBC) to examine complaints and welfare measures regarding socially and educationally backward classes.

	A	Only 1

	B	Only 2

	C	Both 1and 2

	D	Neither 1 nor 2

Your Ans is

Right ans is C

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

Context:Recently, the Centre has extended the tenure of the Rohini Commission until 31st July, 2021 to submit its report on Sub-categorisation of Other Backward Classes (OBCs).

The article 340 of the Indian Constitution lays down conditions for the appointment of a Commission to investigate the conditions of backward classes.
The President may by order appoint a Commission comprising of such persons that he thinks fit to investigate the conditions and background of socially and educationally backward classes that lies within the territory of India.
102nd Constitution Amendment Act(2018) granted Constitutional status to National Commission for Backward Classes and inserted new Articles 338 B and 342 A
Article 338B provides authority to NCBC to examine complaints and welfare measures regarding socially and educationally backward classes.

Indian National Commission For Cooperation With UNESCO

Consider the following statements with reference to the Indian Commission for Cooperation with UNESCO(INCCU):

Indian National Commission for Cooperation with UNESCO(INCCU) was formed by the Government of India in 1959.
It functions under the Department of Secondary and Higher Education in the Ministry of Human Resource Development.

Choose the correct answer from the codes given below:

	A	Only 1

	B	Both 1 and 2

	C	Only 2

	D	Neither 1nor 2

Your Ans is

Right ans is C

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

Indian National Commission for Cooperation with UNESCO (INCCU) was formed by the Government of India in 1949.
It was made a permanent commission in 1951.
The objective of the
The objective of the Commission is to advise the Government in matters falling in the domain of UNESCO and to play a role in UNESCO’s work particularly in the formulation and execution of its programmes.
The Commission consists of five Sub-Commissions namely:
- Education
- Natural Sciences
- Social Sciences
- Communication
- Culture

Consultative Committees

Recently, Farooq Abdullah and Pragya Thakur have been nominated as members of the consultative committee of Parliament for the Ministry of Defence. Consider the following statements about the consultative committee:

These committees are constituted by the Ministry of Parliamentary Affairs.
Consultative committees are attached to various ministries/departments of the Central Government.
It consists of members of both the Houses of Parliament.

Choose the correct answer from the codes given below:

	A	1 and 2

	B	2 and 3

	C	1 and 3

	D	1, 2 and 3

Your Ans is

Right ans is D

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

Consultative Committees are constituted by the Ministry of Parliamentary Affairs.
They consist of members of both the Houses of Parliament.
The Minister/Minister of State in charge of the Ministry concerned acts as the chairman of the consultative committee of that ministry.
Consultative committees are attached to various ministries/departments of the Central Government.
The membership of these committees is voluntary and is left to the choice of the members and the leaders of their parties.
The maximum membership of a committee is 30 and the minimum is 10.
These committees provide a forum for informal discussions between the ministers and the members of Parliament on policies and programmes of the government and the manner of their implementation.

Bimal Jalan Committee

On 26^th August, 2019,the Reserve Bank of India (RBI) decided to transfer a sum of Rs. 1,76,051 crore to the Government of India as per the recommendations made by Bimal Jalan Committee. Consider the following statements regarding the committee:

The 5 member committee was appointed in December, 2018 to review Economic Capital Framework (ECF) for central bank.
The panel’s recommendation for transfer of excess reserves includes only contingency funds.

Which of the statements given above is /are correct?

	A	Only 1

	B	Only 2

	C	Both 1 and 2

	D	None of the above

Your Ans is

Right ans is D

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

The Reserve Bank of India (RBI), in consultation with the government, constituted a 6 member committee headed by the former RBI Governor Bimal Jalan in December, 2018, to review the economic capital framework of the Reserve Bank of India.
Composition-
Former RBI Governor Bimal Jalan (Chairman)
Former Deputy Governor of RBI Rakesh Mohan (deputy chairman)
Economic Affairs Secretary Subash Chandra Garg (member),
RBI Deputy Governor N.S. Vishwanathan (member)
RBI board member Bharat Doshi (member)
RBI board member Sudhir Mankad (member)
The panel’s recommendation for transfer of excess reserves includes both the contingency fund and currency and gold revaluation reserve. Therefore, both the given statements are incorrect.

Source:Civil Services Chronicle Online

U.K. Sinha Committee

Recently, an expert committee under U.K. Sinha has submitted its final report to the government. For which of the following sector was it constituted to suggest reformative measures?

	A	Micro Small and Medium Enterprises (MSMEs)

	B	Agricultural Sector

	C	Banking Sector

	D	None of the above

Your Ans is

Right ans is A

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

In January 2019, RBI set up an expert committee under the former SEBI chairman U.K. Sinha to suggest long-term solutions for the economic and financial sustainability of the MSME sector.
It recommended for the creation of a distressed asset fund, with a corpus of Rs. 5,000 crore, structured to assist units in clusters where a change in the external environment, e.g. a ban on plastics or ‘dumping’ has led to a large number of MSMEs becoming non-performing asset (NPA).

Committees On Agriculture

Consider the following statements regarding the newly formed high level committee to transform the agriculture sector:

It is a 10 member committee headed by the Prime Minister.
It will suggest policy measures, attract investments and raise growth in food processing.
It will suggest a mechanism for linking of market reforms with e-NAM, GRAM and other relevant Centrally Sponsored Schemes.

Which of the given statements is/are correct?

	A	Only 1

	B	2 and 3

	C	1, 2 and 3

	D	None of the above

Your Ans is

Right ans is B

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

Statement 1: On July 1st 2019, the government formed a high level committee headed by Maharashtra Chief Minister Devendra Fadnavis in order to suggest measures for Transformation of Indian Agriculture and to bring structural reforms in agrarian sector in the country. Therefore, the given statement is incorrect.

Statement 2: It is tasked to suggest suitable policy measures, attract investments and raise growth in food processing; hence, the given statement is correct.

Statement 3: It is required to suggest a mechanism for linking of market reforms with e-NAM, GRAM and other relevant Centrally Sponsored Schemes; hence, the given statement is correct.

Baba Kalyani Committee

Baba Kalyani Committee is related to which of the following area?

	A	Special Economic Zone (SEZ) Reforms

	B	Micro, Small and Medium Enterprises (MSMEs)

	C	Digitisation of Economy

	D	None of the above

Your Ans is

Right ans is A

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

It was constituted in June 2018 to make special economic zone (SEZ) policy compatible with World Trade Organisation (WTO) rules after the US challenged India’s export subsidy programme at the multilateral trade body.
It has recommended measures like continuation of tax incentives, migration of SEZs to employment and economic enclaves and creation of link infrastructure and maintenance for enclaves.

Suresh Mathur Committee

‘Suresh Mathur Committee’ sometimes seen in the news is related to?

	A	NPA Problem of the Banks

	B	MSME Reforms

	C	Coastal Regulation Zone

	D	Microinsurance

Your Ans is

Right ans is D

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

IRDAI has constituted a 13 member committee under IRDAI Executive Chairman Dr. Suresh Mathur to look into the regulatory framework of microinsurance and recommend measures to boost the demand of such microinsurances.

Genetic Engineering Appraisal Committee (GEAC)

Consider the following statement vis-à-vis Genetic Engineering Appraisal Committee (GEAC):

GEAC is constituted under Food Safety and Standards Act, 2006.
GEAC is chaired by the Environment Minister.

Choose the correct answer from the code given below:

	A	Only 1

	B	Only 2

	C	Both 1 and 2

	D	Neither 1 nor 2

Your Ans is

Right ans is D

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

GEAC is constituted under the Environment Protection Act, 1986 and functions in the Ministry of Environment, Forest and Climate Change (MoEF&CC). Hence, statement 1 is incorrect.

Responsibility of GEAC:

The committee is responsible for appraisal of activities involving large scale use of hazardous microorganisms and recombinants in research and industrial production from the environmental angle and proposals relating to release of genetically engineered (GE) organisms and products into the environment including experimental field trials.
GEAC is chaired by the Special Secretary/Additional Secretary of MoEF&CC and co-chaired by a representative from the Department of Biotechnology. Hence, statement 2 is incorrect.

Source: www.geacindia.gov.in

National Statistical Commission (NSC)

Consider the following statements vis-à-vis ‘National Statistical Commission (NSC)’:

NSC is a statutory body and was the outcome of Rangarajan Commission.
The Chief Statistician of India is the secretary of NSC.
It works under the office of CSO (Central Statistical Office) and National Sample Survey Organisation (NSSO).

Choose the correct answer from the code given below:

	A	1 and 2 only

	B	1and 3 only

	C	1, 2, and 3

	D	2 only

Your Ans is

Right ans is D

Your Answer Is Correct

Your Answer Is Wrong

Explanation :

NSC was set up in 2005 following the recommendations of the Rangarajan Commission, which reviewed the Indian Statistical System in 2001. The NSC has four Members besides a Chairperson, each having specialization and experience in specified statistical fields.
It is an autonomous institution (and does not come under CSO/ NSSO). The main purpose of setting up NSC was to act as a bridge between CSO, NSSO and different state and central government departments in relation to collection of data.
It is generally said that NSC is not that effective as it is not a statutory body and previously there have been demands to make it a statutory body which would lend it more teeth.

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