rbi grade b phase i general awareness pack - 1 · pdf filechapter 1: indian economy on the eve...
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RBI GRADE B PHASE I GENERAL AWARENESS PACK - 1
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A. RESERVE BANK OF INDIA - ESTABLISHMENT, PREAMBLE
AND MAIN FUNCTIONS:
RBI ESTABLISHMENT –
The Reserve Bank of India Act, 1934 led to the establishment of
RBI.
The RBI was established on April 1, 1935
The central office of the Reserve Bank was initially established in
Calcutta. Later in 1937 it was permanently moved to Mumbai.
Headquarters/ Central office of RBI – Mumbai
The Reserve Bank of India was nationalized in the year 1949.
PREAMBLE –
The Preamble of the Reserve Bank of India describes the basic
functions of the Reserve Bank as
―to regulate the issue of Bank Notes and Keeping of reserves with a
view to securing monetary stability in India and generally to operate
the currency and credit system of the country to its advantage.‖
MAIN FUNCTIONS –
1. Monetary Authority – Formulates, implements and monitors
the monetary policy with an objective of maintaining price stability
and ensuring adequate flow of credit to productive sectors.
2. Regulator and Supervisor of the Financial System: Prescribes
broad parameters of banking operations within which the country's
banking and financial system functions.
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Objective: maintain public confidence in the system, protect depositors' interest and provide cost-effective banking services to the public.
3. Manager of Foreign Exchange
Manages the Foreign Exchange Management Act, 1999. Objective: to facilitate external trade and payment and
promote orderly development and maintenance of foreign exchange market in India.
4. Issuer of currency:
Issues and exchanges or destroys currency and coins not fit for circulation.
Objective: to give the public adequate quantity of supplies of currency notes and coins and in good quality.
5. Developmental role
Performs a wide range of promotional functions to support national objectives.
6. Related Functions
Banker to the Government: performs merchant banking function for the central and the state governments; also acts as their banker.
Banker to banks: maintains banking accounts of all scheduled banks.
Model question: The
Reserve bank of India
was nationalized in the
year?
a. 1935
b. 1939
c. 1947
d. 1949
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B. IMPORTANT DAYS TO REMEMBER IN THE MONTH OF
JANUARY:
January 4 – World Braille Day
January 10 – World Hindi Day
January 12 – National Youth Day (Birth anniversary of Swami
Vivekananda).
January 15 – Indian Army Day
January 24 – national girl child day
January 25 – National Voters day
January 26 – India‘s Republic day;
International customs day
January 30 – Martyrs Day (India)
Last Sunday of January – World
Leprosy Day
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Model Question:
National voters day is
annually celebrated on
a. January 23
b. January 24
c. January 25
d. January 26
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C. ECONOMICS – NCERT XI STANDARD (key points from
chapter 1 to 3)
CHAPTER 1: INDIAN ECONOMY ON THE EVE OF
INDEPENDENCE
- Muslin is a type of cotton textiles which had its origin in Bengal,
particularly in and around Dhaka. (Daccai Muslin – Famous).
- The finest variety of Muslin was called Malmal.
- Notable estimators of Indian income were – D Naoroji, William
Digby, Findlay Shirras, V.K.R.V Rao & R.C. Desai.
- V.K.R.V Rao‘s estimates of national & per capita incomes during
colonial period were significant.
- Tata Iron & Steel Company (TISCO) was established in 1907.
- The opening of the Suez canal further intensified British control
over Indias‘s foreign trade.
- The population of British India were first collected through a
census in 1881.
- Before 1921, India was in the first stage of demographic
transition.
- The 2nd stage of transition began after 1921.
- The British introduced railways in India in 1850.
- Tata Airlines was established in 1932 inaugurating aviation sector
in India.
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CHAPTER 2 : INDIAN ECONOMY 1950-1990
- India borrowed the concept of five year plans from the former
Soviet Union.
- The long term plan is called perspective plan. Five year plans
provided the basis for perspective plan.
- 1950 – Planning Commission was set up.
- The goals of the five years plans are : GROWTH,
MODERNISATION, SELF RELIANCE & EQUITY.
- Growth refers to increase in GDP.
- GDP is the market value of all goods and services produced in the
country during a year.
- Adoption of new technology is called modernization.
- The first 7 five year plans gave importance to self reliance.
- 2nd 5 year plan laid down the basic ideas regarding goals of
Indian Planning, this plan was based on the ideas of Mahalanobis.
- Mahalanobis – The architect of Indian Planning.
- Mahalanobis established the Indian Statistical Institute (ISI) in
Calcutta & started a Journal ―Sankhya‖.
- Land Reforms :-
1.Land to the tiller policy
2.Equity in agriculture called for land reforms which primarily refer
to the change in the ownership of land holdings.
3.Land ceiling was another policy to promote equity in the
agricultural sector.
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4.The purpose of land own ceiling was to reduce the concentration
of land ownership in a few hands.
5.Land reforms were successful in Kerala and West Bengal.
- Green Revolution:
The stagnation in agriculture during the colonial rule was
permanently broken by the green revolution. Use of High Yielding
Variety (HYV) seeds especially for wheat & rice. The portion of
agricultural produce which is sold in the market by the farmers is
called marketed surplus.
- In accordance with the goal of the state controlling the
commanding heights of the economy. The industrial policy
resolution of 1956 was adopted. This resolution formed the basis of
the 2nd 5 year plan.
- This resolution classified industries into three categories.
a.Industries exclusively owned by the state b. Industries in which
the private sector could supplement the efforts of the state sector. c.
Industries by Private Sector.
- In 1955, the village and small scale industries committee, also
called the Karve committee, noted the possibility of using small
scale industries for promoting Rural Development.
- In the first 7 plans trade was characterized by what is commonly
called an inward working trade strategy. Technically this strategy is
called import substitution. This policy aims at replacing or
substituting imports with domestic production.
- Protection from imports took two forms: Tariffs & Quotas.
A. Tariffs are a tax on imported goods.
B. Quotas specify the quantify of goods which can be imported.
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CHAPTER 3 : LIBERALISATION, PRIVATISATION AND
GLOBALISATION :: AN APPRAISAL ·
-Liberalisation and privatization are policies and globalization is the
outcome of these policies.
· LIBERALISATION
a) Deregulation of Industrial Sector: Industrial licensing was
abolished except for alcohol, cigarettes, hazardous chemicals,
industrial explosives, electronics, aerospace and drugs. Industries
reserved for the public sector are defence equipments, atomic
energy generation and railway transport.
b) Financial Sector Reforms: · Establishment of Private Banks
c) Tax Reforms · Reforms is governments taxation and public
expenditure policies which are collectively called fiscal policy.
d) Foreign Exchange Reforms. · Devaluation of rupee against foreign
currencies
e) Trade and Investment policy reforms · Dismantling of quantitative
restrictions on imports and exports · Reduction of tariff rates ·
Import licensing was abolished
PRIVATISATION:
- Privatisation of the public sector undertakings by selling off part of
the equity of PSUs to the public is known as disinvestment.
- Government envisaged that privatization could provide strong
impetus to the inflow of FDI.
GLOBALISATION:
- It is a complex phenomenon.
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- It is an outcome of the set of various policies that are aimed at
transforming the world towards greater interdependence and
integration.
- It involves creation of networks and activities transcending
economics, social and geographical boundaries.
- Outsourcing is one of the important outcomes of the globalization.
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Model question:
Indian Statistical Institute is located in
a. Lucknow
b. Mumbai
c. Kolkata
d. Pune
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D. Tax Structure (Source: Indian Economy by Ramesh Singh)
Tax structure
Modern economics defines tax as a mode of income
redistribution.
Incidence of Tax
The point where tax looks being imposed is known as the incidence
of Tax—the event of tax imposition.
Impact of Tax
The point where tax makes its effect felt is known as the impact of
tax—the after effect of tax imposition.
Direct Tax
The tax which has incidence and impact both at the same point is
the direct tax—the person who is hit, the same person bleeds. As
for example income tax, interest tax, etc.
Indirect Tax
The tax which has incidence and impact at the different points is
the indirect tax—the person who is hit does not bleed someone else
bleeds. As, for example, excise, sales tax, etc which are imposed on
either producers or the traders, but it is the general consumers who
bear the burden of tax.
METHODS OF TAXATION
There are three methods of taxation prevalent in economies with
their individual merits and demerits—
Progressive Taxation
This method has increasing rates of tax for increasing value or
volume on which the tax is being imposed. Indian income tax is a
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typical example of it. The idea here is less tax on the people who
earn less and higher tax on the people who earn more—classifying
income earners into different slabs. This method is believed to
discourage more earnings by the individual to support low growth
and development unintentionally.
Regressive Taxation
This is just opposite to the progressive method having decreasing
rates of tax for increasing value or volume on which the tax is being
imposed.There are not any permanent or specific sectors for such
taxes. As a provision of promotion, some sectors might be imposed
with regressive taxes. As for example, to promote the growth and
development of the small scale industries, India at one time had
regressive excise duty on their productions—with increasing slabs
of volume they produced, the burden of tax used to go on
decreasing.
This method while appreciated for rewarding the higher producers
or income-earners, is criticized for being more taxing on the poor
and low-producers. This is not a popular mode of taxation and not
as per the spirit of the modern democracies.
Proportional Taxation
In such taxation method, there is neither progression nor
regression from the rate of taxes point of view. Such taxes have
fixed rates for every level of income or production, they are neutral
from the poor or rich point view or from the levels of production
point of view. Usually, this is not used by the economies as an
independent method of taxation.
METHODS OF EXPENDITURE
Similar to the methods of taxation the modes of government
expenditure are also of three types —Progressive, Regressive and
Proportional.
At first instance it seems that as a country achieves better levels of
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development, sectoral and the item-wise expenditure of the
economy must have decreasing trends. But practical experience
shows that the level of expenditure needs enhancement everyday
and economy always needs more and more revenues to fulfill the
rising expenditures. That is why for economies the best form of
government expenditure is the progressive expenditure.
The best way of taxation is progressive and the best way of
government expenditure is also progressive and they suit each other
beautifully. Most of the economies around the world are having
progressive taxation with progressive expenditure.
VALUE ADDED TAX
The value added tax (VAT) is a method of tax collection as well as
name of a state level tax ( at present) in India. A tax collected at
every stage of value addition, i.e., either by production or
distribution is known as value added tax. The name itself suggests
that this tax is collected on the value addition (i.e., production).
Production of goods or services is nothing but stages of value
additions where production of goods is done by the industrialists or
manufacturers. But these goods require value addition by different
service providers/ producers (the agents, the wholesalers and the
retailers) before they reach the consumers.
From production to the level of sale, there are many points where
value is added in all goods. VAT method of tax collection is different
from the non-VAT method in the sense that it is imposed and
collected at different points of value addition chain, i.e., multi-point
tax collection. That is why there is no chance of imposing tax
upon tax which takes place in the non-VAT method —single point
tax collection. This is why VAT does not have a ‗cascading effect‘ on
the prices of goods it does not increase inflation—and is therefore
highly suitable for an economy like India where due to high level of
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poverty large number of people lack the market level purchasing
capacity. It is a pro-poor tax system without being anti-rich because
rich people do not suffer either.
GOODS AND SERVICES TAX
The Goods and Services Tax (GST) is a proposal of tax in India
which will emerge after merging many of the state and central level
indirect taxes.
Important points of the proposed GST are as follows:
(i) It will be a tax collected on the VAT method—having all the
benefits of a VAT kind of tax.
(ii) It will be imposed all over the country with the uniformity of rate
and will replace multiple central and state taxes (a single VAT it will
be known). The taxes to be withdrawn or merged into the GST are—
Central Taxes: CENVAT, service tax, sales tax and stamp duty.
State Taxes: State excise, sales tax, entry tax, lease tax, works
contract tax, luxury tax, octroi, turnover tax and cess.
ADDITIONAL EXCISE DUTY
There is a tax in India known as the Additional Excise Duty (AED)
imposed and collected by the centre. Basically, this is not a form of
excise duty. At the same time, though the centre collects it the total
corpus of collected tax is handed over to the states.
On the request of states, the central government passed the Goods
of Special Importance Act, 1957 which empowered the centre to
collect the AED on tobacco, textile and sugar in lieu of states‘ sales
tax on them so that these regionally produced goods (which are
consumed nationally) have uniform and affordable prices across the
country.
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Once VAT is fully operational in the economy this responsibility will
be handed over to the states (as proposed) to be integrated with
their VAT with the condition that none of these commodities will be
charged VAT exceeding 4 per cent.
CST REFORMS
The Central Sale Tax (CST), being an origin—based non-rebatable
tax, it is generally agreed, is inconsistent with the concept of VAT.
That is why it needs to be phased out; the CST reforms is a part of
the tax reforms in India. The critical issue involved in phasing out
of CST is that of compensating the states for revenue losses on
account of such a phase out.
SERVICE TAX
The share of the services sector in the GDP of India has been going
upward for the last decade. The introduction of service tax in 1994–
95 by the Government of India has started paying the government
on its tax revenue front. Introduced to redress the asymmetric and
distortionary treatment of goods and services in the tax regime, the
service tax has seen gradual expansion in the country. The tax was
introduced with only three services liable for taxation, gradually
extended to over 100 services by
2007–08.
VOLUNTARY COMPLIANCE ENCOURAGEMENT SCHEME
Voluntary Compliance Encouragement Scheme (VCES) is a one-time
amnesty for those who have collected service tax but not deposited
the same with the government.
COMMODITIES TRANSACTION TAX (CTT)
Commodities Transaction Tax (CTT) is a tax similar to Securities
Transaction Tax (STT), proposed to be levied in India, on
transactions done on the domestic commodity derivatives
exchanges.
Globally, commodity derivatives are also considered as financial
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contracts. Hence CTT can also be considered as a type of ‗financial
transaction tax‘.
The concept of CTT was first introduced in the Union Budget 2008-
09. The government had then proposed to impose a commodities
transaction tax (CTT) of 0.017% (equivalent to the rate of equity
futures at that point of time). However, it was withdrawn
subsequently as the market was nascent then and any imposition of
transaction tax might have adversely affected the growth of
organized commodities derivatives markets in India.
SECURITIES TRANSACTION TAX (STT)
The STT is a type of ‗financial transaction tax‘ levied in India on
transactions done on the domestic stock exchanges. The rates of
STT are prescribed by the Central government through its Budget
from time to time. In tax parlance, this is categorised as a direct
tax. The tax came into effect from October, 2004. In India, STT is
collected for the Government of India by the stock exchanges.
CAPITAL GAINS TAX
This is a direct tax and applies on the sales of all ‗assets‘ if a profit
(gain) has been made by the owner of the asset – a tax on the ‗gains‘
one gets by selling assets. The tax has been classified into two –
(i) Short Term Capital Gain (STCG): It applies ‗if the Asset has been
sold within 36 months of owning it‘. In this case the ‗rate‘ of this tax
is similar to the normal income tax slab. But the period becomes‘
12 months‘ in cases of shares, mutual funds, units of the UTI and
‗zero coupon bond‘ – in this case the ‗rate‘ of this tax is 15 per cent.
(ii) Long Term Capital Gain (LTCG): It applies ‗if the asset has been
sold after 36 months of owning it‘. In this case the ‗rate‘ of this tax
is 20 per cent. In cases of shares, mutual funds, units of the UTI
and ‗zero coupon bond‘ there is ‗exemption‘ (zero tax) from this tax
(provided that such transaction is subject to ‗Securities Transaction
Tax‘).
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E. KEY POINTS COMPILED FROM ECONOMIC SURVEY 2014-15
[part – I]
There are important points to know from previous year (2014 – 15)
economic survey. Here is the compilation of key points from
Economic survey 2014-15:
1. The Central Statistics office has recently revised the national
accounts aggregates by shifting to the new base of 2011-2012 from
the earlier base of 2004-2005.
2. Growth rate measured by GDP at constant market prices is an
international practice.
3. Gross Value Added (GVA) is a measure in economics of the value
of goods and services produced in an area, industry or sector of an
economy.
a. GVA at basic prices = CE + OS/MI + CFC + Production taxes less
production subsidies.
CE - Compensation of employees
OS - Operating Surplus
MI - Mixed income
CFC - Consumption of fixed capital
Examples of production taxes are land revenues, stamps and
registration fees and tax on profession.
Examples of production subsidies are subsidies to Railways, input
subsidies to farmers, administrative subsidies to corporations etc.
GVA at Factor Cost = GVA at basic prices – Production taxes less
Production subsidies.
4. The difference between Gross Value of Output (GVO) and Gross
Value Added (GVA) is intermediate consumption.
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5. Gross Fixed Capital Formation (GFCF).
It refers to the net increase in Physical assets (investment minus
disposals) within the measurement period.
6. Incremental Capital Output Ratio (ICOR):
It is the additional Capital required to increase one unit of output.
This ratio is used to measure the efficiency of an industrial unit or
country as an economic unit lesser the ICOR, more efficient the
organization. For example, if the 10% additional capital is required to
push the overall output by a percent, the ICOR will be 10.
7. Finance Minister Arun Jaitely in his 2014-15 budget announced
the constitution of an expenditure management commission (EMC).
Former RBI Governor Bimal Jalan headed the EMC. EMC mandated
with the trask of suggesting an overhaul for reducing the food,
fertilizer and oil subsidies and other ways of controlling
India’s fiscal deficit.
8. Headline Inflation measured in terms of the wholesale price Index
(WPI) (Base year 2004-2005) is at an average of 3.4% in 2014-15.
9. Outlining the roadmap for fiscal consolidation, the budget for 2014-
15 envisaged a fiscal deficit target at 4.1% of GDP and sought to
reduce it further to 3% of GDP by 2016-17.
10. The Constitution (122nd Amendment) Bill which provides for levy
of a Goods and services tax (GST) on all goods and services except
those specified.
11. Goods & Service Tax
The introduction of the GST would be a significant step in the field
of indirect tax reforms in India.
It would mitigate cascading or double taxation in a major way.
The main features of the proposed GST model are as follows.
A. GST would be applicable on supply of goods or services.
B. GST would be a destination based tax.
C. It would be a dual GST with the centre and the states
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simultaneously levying it on a common base.
D. An integrated GST would be levied on inter State supply.
E. Central GST, State GST and integrated GST would be levied at rate
recommended by the Goods and Services Tax Council (GSTC), which
will be chaired by the Union Finance Minister are will have Finance
Ministers of State as its members.
Federal countries like Canada, Newzealand and Australia have
successfully adopted the GST.
12. Non – Tax revenue mainly consists of interest and dividend
receipts and the receipts from services provided by the central
government.
13. Recoveries of loans and disinvestment are the two main
constituents of non-debt capital receipts.
14. The two pillars of fiscal reforms are
a. Revenue augmentation.
b. Expenditure rationalization
15. In 2014-15, the centrally sponsored schemes were restructured
into 66 programmes.
16. RBI adopted the new consumer price index (combined) as the
measure of the nominal anchor for policy communication.
17. RBI has tightened the norms for asset reconstruction companies
where by the minimum investment in security receipts should be
15%, as against the earlier norm of 5%.
18. The objective of Financial inclusion is to ensure the excluded
sections, i.e weaker sections and low income groups, access to
various financial services such as basic savings bank account, need
based credit, remittance facility, insurance & pension.
19. Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched on 28th
August 2014. The PMJDY envisages universal access to banking
facilities with one basic banking account for every household. The
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beneficiaries receive a Rupay Debit Card having inbuilt accident
insurance cover of Rs. 1 Lakh. The PMJDY has entered the guiness
world records for opening most bank accounts.
20. The union cabinet has approved a proposal allowing Public Sector
Banks (PSBs) to raise capital from public markets through FPO(Follow
on Public Offer) or QIP (Qualified Institutional Placement) by diluting
GOI holding upto 52% in a phased manner.
21. With the commencement of the foreign portfolio investment (FPI)
regime from June 2014, the erstwhile foreign institutional investors
(FIIs), sub accounts and qualified foreign investors (QFIs) have been
merged into a new investor class termed Foreign Portfolio Investors.
22. GOI has promulgated the Insurance laws (Amendment) ordinance
2014 to enhance the foreign equity investment cap in an Indian
insurance company from 26 to 49%.
23. Securities Laws (Amendment Act, 2014, enhanced powers were
conferred upon SEBI, including explicit power to disgorge ill gotten
gains, power to conduct search and seizure, explicit power for
settlement, attachment and recovery.
24. SEBI amended clause 49 of the equity listing agreement with
provisions such as exclusion of nominee director from the definition of
independent director and compulsory whistle blower mechanism.
25. The securities contracts (Regulation) Rules 1957 were amended
to require a minimum public share holding of 25% of the total number
of issued shares of public sector units within 3 years.
26. IMF projected the global economy to grow from 3.3% in 2014 to
3.5% in 2015.
27. The WEO update projects India’s GDP growth at market prices to
be 6.3% in 2015 and for the year 2016, projected growth is 6.5%.
28. India’s share in global exports and imports is 2.5% in 2013.
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29. The top 7 product groups accounting for nearly 80.9% of India’s
total exports in 2014-15 were:
1. Petroleum
2. Gems & Jewellery
3. Agriculture & Allied Products
4. Textiles
5. Chemicals
6. Transport equipment
7. Machinery
30. One of the major items in India’s import basket is of the POL
group, which accounted for 36.6% of India’s total imports in 2013.14.
[ POL : Petroleum, Oil and Lubricants ]
31. To boost the performance of the export sector various schemes
were strengthened, viz.
i. Focus Product Scheme (FPS)
ii. Focus Market Scheme (FMS)
iii. Market linked Focus Product Scheme (MLFPS)
iv. Vishesh Krishi & Gram Udyog Yojana (VKGUY)
32. To diversify India’s exports, 7 new markets
a. Algeria
b. Aruba
c. Austria
d. Cambodia
e. Myanmar
f. Netherlands Antilles
g. Ukraine have been added to the Focus Market Scheme.
33. Indian trade portal (www.indiantradeportal.in) was launched to
provide vital information to Indian industry.
34. The Real Effective Exchange Rate (REER) indices are used as
indicator of external competitiveness of the country over a period of
time.
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35. The nominal effective exchange rate (NEER) is the weighted
geometric average of the bilateral nominal exchange rate of the home
currency in terms of foreign currencies.
36. REER is defined as a weighted geometric average of nominal
exchange rates of the home currency in terms of the foreign
currencies adjusted for relative price differential.
37. The share of agriculture in total GDP is 18% in 2013-14.
38. With effect from 2014-15, the mission of integrated Development
of Horticulture (MIDH) has been operationalized by bringing all
ongoing schemes on horticulture under a single umbrella.
39. Neeranchal, a new programme to give additional impetus to
watershed development in the country.
40. India ranks 1st in milk production accounting for 17% of world
production.
Model Question:
FPS, a scheme related to export sector. What does FPS stand for?
a. First Product scheme
b. Focus Product Scheme
c. Final Product scheme
d. None of the above
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F. Current Events (January 2016 – Part I):
1. Sikkim became the first organic farming state of India.
2. R.K. Mathur took oath as Chief Information Commissioner.
3. Amitabh Kanth – CEO of NITI Aayog
4. India‘s Dinesh Sharma was elected to the 12 Member Board of
directors of the China sponsored Asian Infrastructure Investment
Bank.
5. Dr.Urjit Patel reappointed as Deputy Governor of RBI for second
term.
6. Indian Author Anuradha Roy won the prestigious DSC Prize for
south Asian Literature for her novel Sleeping on Jupiter at the Galle
Literary Festival in Sri Lanka.
7. Employees Provident Fund Organisation won the National Award
on e-governance 2015-16 for launching the Universal Account
Number (UAN).
8. INSEAD launched the Global Talent competitiveness Index (GTCI)
2015-16. Singapore topped the list. India ranks 89th out of 109
countries.
9. Jammu and Kashmir Chief Minister Mufti Mohammad Sayeed
Passed away.
10. Maria Teressa de Filippis, the first woman to compete in a world
championship formula one grand prix, passed away.
11. Atulesh Jindal – Chairman of Central Board of Taxes.
12. Devendra Kumar Sikri appointed chairman of Competition
commission of India.
13. Sailesh – Registrar general and Census Commissioner of India.
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14. Pawan Kumar Agarwal appointed as CEO of Food Safety and
Standards Authority of India.
15. British writer Kate Atkinson won the novel of the year Prize at
Britain‘s costa book awards 2015.
16. Former Indian Cricketer, Syed Kirmani was awarded with the
2015 Colonel C.K.Nayudu lifetime achievement award.
17. Raghuveer chaudhari selected for 51st Jnanpith Award.
To subscribe RBI Grade B Phase I General Awareness Course
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Model Question:
Who among the following was the author of “Sleeping on Jupiter”?
a. Kate Atkinson
b. Anuradha Roy
c. Ruchir Sharma
d. Rushdie
RBI GRADE B PHASE I GENERAL AWARENESS PACK - 1
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INSTITUTION IN FOCUS
BANK FOR INTERNATIONAL SETTLEMENTS (BIS):
Established on 17 May 1930, the Bank for International Settlements (BIS) is the world's oldest international financial organisation.
The BIS has 60 member central banks, representing countries from around the world that together make up about 95% of world GDP.
The head office is in Basel, Switzerland.
There are two representative offices: in the Hong Kong Special Administrative Region of the People's Republic of China and in Mexico City.
The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks.
CEO – Jaime Caruana
Model question:
The head office of the Bank for International settlements is located in
a. Berlin
b. Paris
c. London
d. Basel