[Mission 2022] QUIZ – 2021: Insights Current Affairs Quiz , 10 June 2022

Solution: b)

The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.

The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth. Price stability is a necessary precondition to sustainable growth.

In May 2016, the Reserve Bank of India (RBI) Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework.

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Solution: b)

The Union government has made capturing of attendance through its app, National Mobile Monitoring System, compulsory at worksites where 20 or more workers under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) are employed.

The Ministry of Rural Development had started the exercise on a pilot basis on May 21, 2021. Initially, the utilisation of application was to be voluntary but from May 16, 2022 it has been made mandatory. The Ministry’s directive claims that the app, which requires two time-stamped and geotagged photographs of the workers in a day, encourages transparency and increases citizen oversight.

The biggest setback after the move has been for women employees, especially the supervisors or “work mates”. In a majority of cases, the employees’ families are averse to giving phones to women, especially smartphones. Hence, many women have dropped out.

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Solution: c)

The amended RBI Act also provides for the inflation target to be set by the Government of India, in consultation with the Reserve Bank, once in every five years. Accordingly, the Central Government notified in the Official Gazette 4 per cent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016 to March 31, 2021 with the upper tolerance limit of 6 per cent and the lower tolerance limit of 2 per cent. On March 31, 2021, the Central Government retained the inflation target and the tolerance band for the next 5-year period – April 1, 2021 to March 31, 2026.

The amended RBI Act explicitly provides the legislative mandate to the Reserve Bank to operate the monetary policy framework of the country.

The Monetary Policy Framework aims at setting the policy (repo) rate based on an assessment of the current and evolving macroeconomic situation; and modulation of liquidity conditions to anchor money market rates at or around the repo rate. Repo rate changes transmit through the money market to the entire the financial system, which, in turn, influences aggregate demand – a key determinant of inflation and growth.

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Solution: c)

Foreign Contribution Regulation (Amendment), Act 2020:

• Under the Act, foreign contribution cannot be transferred to any other person unless such person is also registered for that purpose.
• The amendment also forbids sub-granting by NGOs to smaller NGOs who work at the grassroots.
• The act states that foreign contributions must be received only in an FCRA account opened in the State Bank of India, New Delhi Branch. No funds other than the foreign contribution should be received or deposited in this account.
• Restriction in utilisation of foreign contribution: The act gives government powers to stop utilization of foreign funds by an organization through a “summary enquiry”.
• Reduction in use of foreign contribution for administrative purposes: The act decreases administrative expenses through foreign funds by an organization to 20% from 50% earlier.
• Surrender of certificate: The act allows the central government to permit a person to surrender their registration certificate.

Solution: d)

National Authority for imposition of Anti-dumping Duty:

• The anti-dumping duty was imposed after the Directorate General of Trade Remedies (DGTR) probe.
• Directorate General of Trade Remedies is the apex national authority under the Ministry of Commerce and Industry for administering all trade remedial measures including anti-dumping, countervailing duties and safeguard measures.
• It provides trade defence support to the domestic industry and exporters in dealing with increasing instances of trade remedy investigations instituted against them by other countries.
• According to global trade norms, including the World Trade Organization (WTO) regime, a country is allowed to impose tariffs on such dumped products to provide a level-playing field to domestic manufacturers.
• The duty is imposed only after a thorough investigation by a quasi-judicial body, such as DGTR, in India.