QUIZ – 2017: Insights Current Affairs Quiz, 22 March 2019

Solution: c)

Banking regulator RBI has bought eight tonnes of gold after almost nine years. The RBI last bought 200 tonnes of gold from the International Monetary Fund in November 2009.

Of the 566 tonnes gold reserves, 292 tonnes is held as backing for Notes issued and the balance 274 tonnes (265.49 tonnes) is treated as an asset of the Banking Department.

The RBI’s decision to buy gold is significant because unlike many other central banks such as the People’s Bank of China, RBI does not regularly trade in gold, although the RBI Act permits it to do so.

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Solution: d)

The United Nations Office for Disaster Risk Reduction (UNISDR), created in December 1999, is the successor to the secretariat of the International Decade for Natural Disaster Reduction.

It was established to ensure the implementation of the International Strategy for Disaster Reduction.

It is part of the United Nations Secretariat and its functions span the social, economic, environmental as well as humanitarian fields.

Functions: UNISDR supports the implementation, follow-up and review of the Sendai Framework for Disaster Risk Reduction adopted by the Third UN World Conference on Disaster Risk Reduction on 18 March 2015 in Sendai, Japan.

UNISDR’s vision is anchored on the four priorities for action set out in the Sendai Framework:

1. Understanding disaster risk.
2. Strengthening disaster risk governance to manage disaster risk.
3. Investing in disaster risk reduction for resilience.
4. Enhancing disaster preparedness for effective response and to “Build Back Better” in recovery, rehabilitation and reconstruction.

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Solution: a)

As a part of this customer-centric approach, to enhance the independence of the IO while simultaneously strengthening the monitoring system over functioning of the IO mechanism, RBI has reviewed the arrangement and issued revised directions under Section 35 A of the Banking Regulation Act, 1949 in the form of ‘Internal Ombudsman Scheme, 2018’. The Scheme covers, inter-alia, appointment / tenure, roles and responsibilities, procedural guidelines and oversight mechanism for the IO.

All Scheduled Commercial Banks in India having more than ten banking outlets (excluding Regional Rural Banks), are required to appoint IO in their banks.

RBI said that bank ombudsmen have to be appointed for a fixed tenure, directly reporting to the bank’s customer service committee and they must be people from outside the bank, giving this post an independent standing in a bank hierarchy.

An ombudsman is a person officially charged with investigating and addressing public complaints or violation of rights.

The implementation of IO Scheme, 2018 will be monitored by the bank’s internal audit mechanism apart from regulatory oversight by RBI.

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Solution: c)

Indian Space Research Organisation (ISRO) and Russia’s federal space agency Roscosmos State Corporation for Space Activities (ROSCOSMOS) have agreed to work together for first manned space mission Gaganyaan. It is India’s first manned space mission. This mission will make India fourth nation in the world after USA, Russia and China to launch human spaceflight mission.

India is planning to send three humans (Gaganyatris) into space i.e. in low earth orbit (LEO) by 2022 i.e. by 75th Independence Day.

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Solution: b)

The government has notified changes to Section 56 of the Income Tax Act, in a move that brings

relief to start-up founders and investors dealing with the issue of “Angel Tax”. (It is a direct tax).

• Angel Tax is a 30% tax that is levied on the funding received by startups from an external investor. However, this 30% tax is levied when startups receive angel funding at a valuation higher than its ‘fair market value’. It is counted as income to the company and is taxed.
• The tax, under section 56(2)(viib), was introduced by in 2012 to fight money laundering. The stated rationale was that bribes and commissions could be disguised as angel investments to escape taxes. But given the possibility of this section being used to harass genuine startups, it was rarely invoked.
• Why is Angel tax problematic?
  • There is no definitive or objective way to measure the ‘fair market value’ of a startup. Investors pay a premium for the idea and the business potential at the angel funding stage. However, tax officials seem to be assessing the value of the startups based on their net asset value at one point. Several startups say that they find it difficult to justify the higher valuation to tax officials.