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Tnpscmojo'S Business Standard Based MCQ'S - 25/03/2019
Tnpscmojo'S Business Standard Based MCQ'S - 25/03/2019
Tnpscmojo'S Business Standard Based MCQ'S - 25/03/2019
This PDF Contains MCQ from Business Standard Newspaper 25/3/2019 for RBI Grade B
Phase 1 and Phase 2 . This Document will also be useful for SBI PO, SSC CGL, LIC AAO and
other exams
3. What is Proposed? Ministry of corporate affairs has decided to take up transfer of shares
process
4. What does Unclaimed Shares mean?: Physical Shares Lost or Shares held by a dead Person
5. Present Procedure?: On Death of share holder the Legal Heir request the company to transfer
the shares to their names
6. Organization that is given this Job: IEPFA under Ministry of Corporate Affairs
Expected MCQ
IEFPA
Respective Company
So these NBFC’s to enhance their base are left with two modes
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1. To Get Converted as Banks
Less Liquidity --> Higher Cost of Funds --> Higher Rates of Interest --> Exposure to One
Sector such as Real Estate thus resulting in higher risk
R: Post IL and FS Cash crunch there is successive avalanche triggering less liquidity for
NBFC’s thereby exposing them to one large entity
Is R a Correct Reason of A?
Yes
2. Long Term Capital borrowings of Companies : 25% is to obtained via Bond market
We earlier witnessed the IL and FS Crisis which triggered to review the Credit Rating system in
India
That is a ARC reviewing the entity A will do it for some period and move to rate entity B and
entity A will reviewed by another CRA which cuts off the CRA-Entity Relation
But Govt has commented that this will lead to Short term Reviewing of ARC
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Trade-off should be done between Period of Review of Entity vs the ARC Exposure that
particular ARC
Other Reform by SEBI is that Entities need to raise the Long Term via Bonds
Fund Raising =25% for long term funds --> Mandated by SEBI
With Respect to the CRA Framework Evaluation Committee recently to examine CRA’s
accountability
CRA’s shall be rating the entities in a rotation so that no Entity - CRA relationship builds up
Which is False?
Last point : 25% of Long Term Bond Mandate is mandatory as per the Committee is false
1. What is the Issue? : Government announced Rs6000 support to farmers under PM Kisan .
Total Rs20000Crore allocation was done in budget of which Rs9400 Crore worth beneficiaries
have been registered for their 1st Installment amount of Rs2000. As Elections are scheduled in
April-May this year, Model code of conduct is in place from March 10. No more beneficiaries
will be added to scheme
2. What will happen to remaining Rs9400 Crore? : It will allocated to meet out the Fiscal
Deficit
The Amount that was disbursed before elections to per farmer under PM Kisan is ____
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Rs1500
Rs2000
Rs6000
Ans: Rs2000
1. What is FPO? --> A Group of Farmers with a professional management body to sell their
produce
2. Started in 2012: A separate proportion of allocation is done to FPO farmers under various
agriculture production related schemes such as MIDH, NFSM etc…
4. Stat’s so far : There are 4000 FPO’s of which 2000 are backed by NABARD
2 Professional Management to trade their produce (But they need the APMC Certificate to
market these good’s)
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Though they receive a budget support , bank’s don’t classify them under PSL
1. What are “Enemy Shares”? --> The properties of Chinese and Pakistani who left their
properties in India with Custodian
Govt recently did several measures such as PFC-REC merger, Purchase of the Enemy shares by
CPSE to meet it’s disinvestment targets of Rs80000Crore
Government had set a target of Rs80000Crore for Disinvestment this year? Actual achieved is
around
Rs85000Crore
Rs90000Crore
Rs100000Crore
Ans: Rs85000Crore
Exposure to Retail Loans = That is Loan given for housing, consumer durables are still a bit
high when compared to the Industrial Credit exposure such as giving loans to institutional
entities etc..
Exposure to a loan = No of Entities given loan under a category/Number of Entities that need a
loan under a category
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To understand this issue : You need to know what IBC is? Please refer our previous release
Premise is that : If we have two laws that are concerned with a issue, latter will take it’s
dominance
This happened to the case of Sec 71 of PMLA and Sec 238 of the IBC which deals with taking
possession of the assests of corporate debtor those subject to attachment under the PMLA
As per Sec 238 of IBC, Resolution professionals where able to take possession of debtor assets
those subject to attachment under the PMLA
PSU have started back paying dividends in form of direct transfer, share buyback etc.. thus
easing India’s Fiscal Deficit for current Fy of 3.4%
But GST revenue has been less and will take Fiscal deficit to nearly 4%
It explains how the USD-INR Swap is going to Banks or RBI based on FOREX Rates
Point to be understood is : How the Transmission of liquidity to the NBFC is going to happen
via the bond market
Please read for clarity . From Exam point of view, operation of swap and value of swap is
important
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Payment through the Wallets have increased tremendously , but the existing Payment and
Settlement Act 2007 couldn’t regulate to the expected level, thus leading in increased cases
being reported
Digital Ombudsman has been created by RBI and Stricter KYC Norms have been proposed
Amendments to PSS 2007 to get complied with the law system is underway
SUMMARY OF ITEM
ISSUE CRUX
Onus of share transfer may shift from firms to Proposal of IEFPA to handle share transfers
govt
3 Choices before wobbly NBFC’s Liquidity vs Choice to get merged for NBFC
and exposure of NBFC to a single entity thus
exposing a higher risk
Rating the Raters: No Easy Solution Rotation of CRA’s and Limiting entity-CRA
exposure . Pro’s and Con’s
FPO’s a hope for small farmer, institutional FPO’s Pro vs Cons = Profitability vs PSL
financing a worry Coverage
NIL NIL
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13. Banks Continue to depend on Retail Loans RBI’s survey found that Banks are
for growth concentrating much towards the Retail Loans
14. The Overriding power of NBFC’s IBC Act vs PMLA Act in Resolution process
for the debtor property attached with PMLA
15. Relief for Start-up’s Differential voting rights and Angel tax
evasion
16. Traders May go up on rupee The FOREX rate and transmission of liquidity
17. Need for Improved redress mechanism PSS Act 2007 amendments to meet out the
current standards to regulate the wallets