Indian Economy GK Questions with Answers – Page 23

An amendment of the Reserve Bank of India Act in 1956 replaced the proportional reserve system with the Minimum Reserve System, under which the Bank must hold assets worth two hundred crore rupees against the note issue, of which gold must be not less than one hundred fifteen crore rupees…

Section 24 of the Reserve Bank of India Act, 1934 permits banknotes of denominations up to ten thousand rupees, so a note of a higher value would need an amendment of the Act by Parliament.

The one rupee note is issued by the Government of India under the Coinage Act and carries the signature of the Finance Secretary, while every other denomination is a banknote issued by the Reserve Bank under Section 22 of its Act and carries the signature of the Governor.

Section 22 of the Reserve Bank of India Act, 1934 confers on the Reserve Bank the sole right to issue banknotes in India, and the Issue Department of the Bank keeps this function separate from its banking business.

Muhammad Yunus began lending very small sums to poor women in groups, without collateral, and the experiment became the Grameen Bank; he and the bank were awarded the Nobel Peace Prize in 2006, and the model was studied by every country that later took up microfinance.

The correct answer is A, the Ministry of Rural Development, which runs the mission to organise poor rural households, mainly women, into self-help groups, give each group a revolving fund and a community investment fund, federate the groups at village and cluster level and arrange bank credit with interest subvention.

Kudumbashree, which means prosperity of the family, was launched in 1998 as a poverty eradication and women's empowerment mission of the State government working through neighbourhood groups, area development societies and community development societies, and it is among the largest women's networks in the country.

The correct answer is B, Verghese Kurien, who built the dairy cooperative of Kaira district at Anand in Gujarat, known by the brand name Amul, and then carried the Anand pattern across the country through the National Dairy Development Board, whose Operation Flood began in 1970 and made India the…

The size is deliberate: large enough for the pooled savings to be useful and for the group to stand behind each loan, and small enough for every member to attend a weekly meeting, know every other member and keep the accounts without outside help.

NABARD began the programme as a pilot, linking a few hundred self-help groups to banks so that a group with a record of regular saving and internal lending could borrow as a single account, and it has grown into the largest microfinance programme in the world measured by households reached.

The correct answer is C, the Primary Agricultural Credit Society, the body of farmer members in a village or a group of villages that lends directly to the cultivator for seed, fertiliser and other short-term needs.

The National Bank for Agriculture and Rural Development began work on 12 July 1982 on the recommendation of the Committee to Review Arrangements for Institutional Credit for Agriculture and Rural Development, chaired by B. Sivaraman, and it has its head office at Mumbai.

The correct answer is B, Part IXB, made up of Articles 243ZH to 243ZT, which the Constitution (Ninety-seventh Amendment) Act, 2011 inserted to lay down rules on the board of a cooperative society, its five-year term, reservation of seats, audit and elections.

The correct answer is B, the State List, where cooperative societies appear as entry thirty-two, which is why every State has its own cooperative societies Act and its own registrar of cooperative societies.

It was the first law on the subject and gave village credit societies a legal form, following the recommendation of the Famine Commission and the study of European land banks by Frederick Nicholson, with the German Raiffeisen societies as the model.

The Code on Wages, 2019 was passed by Parliament, received the President's assent and was notified in the Gazette of India on 8 August 2019.

The Finance Minister announced Sovereign Green Bonds in the Union Budget speech of 1 February 2022, as part of the government's overall market borrowing.

Hilly terrain, economic backwardness and a sizeable tribal population are criteria; the strategic factor is location along international borders, not a coastal zone.

A lower CRR means banks must park less money with the RBI, so they have more to lend, and lending creates more money.

The G20 was formed in 1999, not 2001, as a forum of Finance Ministers and Central Bank Governors. The Group of Twenty was set up in 1999 after the Asian financial crisis, so that finance ministers and central bank governors of major developed and emerging economies could meet regularly.