QUIZ – 2017: Insights Current Affairs Quiz, 06 April 2019

Solution: a)

RBI’s Prompt Corrective Action (PCA) Framework is a set of guidelines for banks that are weak in terms of identified indicators including – poor asset quality, insufficient capital and insufficient profit or losses.

The PCA is an early intervention package or resolution guideline by the RBI when a bank turns weak in terms of the identified indicators.

The Reserve Bank has specified certain regulatory trigger points, as a part of prompt corrective action (PCA) Framework, in terms of three parameters, i.e. capital to risk weighted assets ratio (CRAR), net non-performing assets (NPA) and Return on Assets (RoA), for initiation of certain structured and discretionary actions in respect of banks hitting such trigger points.

The PCA framework is applicable only to commercial banks and not extended to co-operative banks, non-banking financial companies (NBFCs) and FMIs.

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Solution: c)

A fugitive economic offender is an individual who has committed some specified offence(s) involving an amount of one hundred crore rupees or more and has absconded from India or refused to come back to India to avoid or face criminal prosecution in India.

The property of a fugitive economic offender, resulting from the proceeds of crime, including benami property, can be confiscated once he is declared so by the Court. Properties abroad are also liable for confiscation. Further, he would be disentitled from defending any civil claim. An Administrator will be appointed to manage and dispose of the confiscated property.

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Solution: c)

PMI or a Purchasing Managers’ Index (PMI) is an indicator of business activity — both in the manufacturing and services sectors. It is a survey-based measures that asks the respondents about changes in their perception of some key business variables from the month before. It is calculated separately for the manufacturing and services sectors and then a composite index is constructed.

A figure above 50 denotes expansion in business activity. Anything below 50 denotes contraction.

The PMI is usually released at the start of the month, much before most of the official data on industrial output, manufacturing and GDP growth becomes available. It is, therefore, considered a good leading indicator of economic activity. Economists consider the manufacturing growth measured by the PMI as a good indicator of industrial output, for which official statistics are released later. Central banks of many countries also use the index to help make decisions on interest rates.

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Solution: d)

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Solution: b)

The Virtual ID is a random 16-digit number.
*The ID can be generated as many times as possible.

*The older ID gets automatically cancelled once a fresh one is generated.

*Users can go to the UIDAI website to generate their virtual ID which will be valid for a defined period of time, or till the user decides to change it.

*The ID, along with the biometrics of the user, would give any authorised agency, like a mobile company, limited details like name, address and photograph, which are enough for any verification.

*Agencies that undertake authentication would not be allowed to generate the Virtual ID on behalf of the user.

*UIDAI also introduced the concept of ‘limited KYC’, which will provide need-based or limited details of a user to an authorised agency providing a particular service.

One’s Aadhaar number cannot be derived from the Virtual ID that is generated.

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