Indian Economy Test-1

iwatch ’is a mobile app; available on the apple watch launched by the HDFC bank in April 2015.

one rupee notes are printed by the Ministry of Finance while other notes are printed by  the RBI.

The sentence among the options provided that is not correct is:

1. RBI ’s headquarter is in Delhi

The Reserve Bank of India (RBI), which is the central bank of India, has its headquarters in Mumbai, not Delhi. The other statements are:

1. RBI was nationalized on January 1, 1935: This statement is incorrect. RBI was established on April 1, 1935, based on the recommendations of the Hilton Young Commission. It was nationalized later, on January 1, 1949.

2. RBI is the custodian of the foreign currency in India: This is correct. The RBI plays a crucial role in the management of India 's foreign exchange reserves and is the custodian of foreign currencies in India.

3. RBI has 4 Deputy Governors: This is correct. The RBI typically has four Deputy Governors, who are appointed to oversee various functions of the bank.

The Monetary Policy Committee (MPC) of India is responsible for fixing the benchmark interest rate in India. The MPC is a committee of the Reserve Bank of India (RBI), constituted by the Central Government of India, and is tasked with ensuring price stability while keeping in mind the objective of growth. The committee consists of six members –three officials of the Reserve Bank of India and three external members nominated by the Government of India. Decisions are made by majority vote of the committee members.

While the Reserve Bank of India (option 1) plays a crucial role in the country 's monetary policy, the specific decisions regarding policy rates are made by the MPC. The other options listed, such as the Banking Association of India, NITI Aayog, or any other entity, are not responsible for deciding the monetary policy of India.

Forex Reserve is the short form of Foreign Exchange Reserve which is the collection of foreign currency.

In India, the  second generation  reform started from 1996 to 2007. During this period, 2 five year plans were included. 

1. The second generation of economic reforms in the country gave special stress on  fiscal reforms, financial reforms, structural reforms, labor law reforms , etc.
2. The second-generation reforms focused on the economic growth of the country by setting targets to achieve growth in foreign direct investment by giving liberty to foreign firms to set up corporations in India.
3. It aimed at exploiting the knowledge-based global economy to enhance advancement in science and technology in India.
4. A clean environment was also one of the aims to be achieved in second-generation  reform. 
5. At that time, the focus was more on economic growth, and no such measures were taken to control the population.

Thus, option 3 is the correct answer.

Key Points

• It is anindependent, legislative body responsible for regulating and promoting the Indian insurance and reinsurance industries.
  • It was established by the Insurance Regulatory and Development Authority Act, 1999 a Parliament Act passed by the Indian government.

Important Points  

•  IRDAI is a 10 -member body that includes the chairman, five full-time and four part-time members appointed by the Indian government
  • PhonePe on 30 August 2021 has been issued an insurance broking license from the Insurance Regulatory and Development Authority of India (IRDAI).
  • The union government has appointed former Financial Services Secretary Debasish Panda as Chairman of IRDAI.

1. The push for  digitization  in the wake of demonetization and the proposal for public sector bank (PSB) consolidation  was  the top agenda for Gyan Sangam which was the retreat for PSBs, government-owned Financial Institutions (FI), and insurance companies, held in March '2016.
2. Gyan Sangam 's 2 important aspects were:

• Automation of middle management functions : Referring to the manpower shortage, especially in middle management in PSBs, the sources said the retreat would have discussions on  automating/digitizing  many of these functions to ensure productivity improvement. Strategies for strengthening the ‘banking correspondent ’-network and increasing the usage of micro ATMs and Point of Sale machines
• Expediting banking reforms : The high-profile meeting will also deliberate upon the need for the autonomous Banks Board Bureau (BBB) to expedite banking reforms including  PSB consolidation . 

Thus, the new reforms in the Indian banking system include Digitisation of bank operations and Banking consolidation.

• Bank of Baroda  is a public sector bank in India. Maharaja Sayajirao Gaekwad III of Baroda established this bank on July 20, 1908, in Baroda, the native state of Gujarat. This bank along with 13 other major commercial banks was nationalized by the Government of India on July 19, 1969.
• Indian Bank  is a state-owned banking and financial services company, established in 1907. The headquarter of the bank is in Chennai, it has a large network of 2836 branches all over the country. It provides many banking and financial services such as savings accounts, fixed deposits, loans, etc.
• Canara Bank  is indigenous and the third largest public sector bank of India, this bank was established on  1st July 1906  by Late Shri Ammembal Subbarao Pai and its headquarter is located in Bangalore Karnataka.
• Central Bank of India  is a major public sector bank in India that was established in 1911 by Sir Sorabji Pochkhanwala, a Parsi banker influenced by the Swadeshi movement. It also has the distinction of being the first Indian commercial bank that was fully owned and managed by Indians at the time of its inception.

During the 1980s, India borrowed 7 billion USD from the International Monetary Fund (IMF). This borrowing was aimed at addressing India 's economic challenges and supporting its development efforts. The loan from the IMF helped India stabilize its economy and implement necessary reforms to promote growth and financial stability.