Concepts Flashcards
SHG, FPO, Green Bonds, Dev Banks, e-Nam
1
Q
What are SHGs?
A
Self governed, peer controlled, informal group with similar socio-economic background, having a desire to collectively perform common purpose
SHG = informal Womens group + common purpose -> women empowerment + rural development
2
Q
Examples of SHG?
A
Kudumbashree in Kerala, Rangabelia Mohila Samity in Sundarban, SEWA
3
Q
SHGs directly or indirectly work as?
A
Engines of empowerment and rural development
4
Q
NABARDs contribution for SHGs
A
- SHG-Bank Linkage Programme (Financial Inclusion)
- Women SHG Development Fund
5
Q
How is government promoting SHG formation and functioning?
A
- Minimal Paper work
- Schemes & programmes
- Collateral Free Loans
- Digitisation of SHGs through initiatives like E-Sakhi
- Giving recognition through different platforms
6
Q
Why are SHGs important?
A
- Nearly half the population is made up of women
- 70% of population resides in rural areas.
target group
7
Q
What are the Development Banks present in India?
A
NABFID, NABARD, EXIM, SIDBI, IIBI, IDBI, IIFI
8
Q
Financial institutions that provide long-term credit for capital-intensive investment
At low stable rates
A
Development Banks
9
Q
Development banks are aka
A
Term lending institutions
Development finance institutions
10
Q
Banks that mobilise short to medium term deposits and lend for similars maturities to avoid maturity mismatch
A
Commercial Banks
11
Q
NABARD formed in?
A
July 1982
12
Q
EXIM formed in?
A
1982
13
Q
SIDBI formed in?
A
1990
14
Q
IIBI formed in?
A
1972
15
Q
IDBI formed in?
A
1964
16
Q
IFCI formed in?
A
1948
oldest
17
Q
NBFID formed in?
A
2021
Newest
18
Q
What are the categories of Development Banks?
A
National - SBI
Sector Specific - NABARD
Investment Type - LIC and GIC
State Level - WBFC (for MSME - 1954)
19
Q
Which report of Wold Bank is devoted to the theme of importance of long term finance?
A
Global Financial Development Report (2015)
20
Q
Investment in Infrastructure has a multiplier effect, how?
A
Investment in infrastructure = inc in public demand + revives economy.
Especially valid during the lockdown
21
Q
NBFID full form?
A
National Bank for Financial Infrastructure & Development
22
Q
NBFID was created to be?
A
The principle Development Finance Institution (DFI)
23
Q
A
,
24
Q
Economic Development equation
A
Economic Development = Economic Growth + Human Development
25
Which article in the constitution led to the genesis of Green Bonds in India?
**Art 48A**
Calls for preservation of environment
26
Policies and Guidelines that led to the genesis of Green Bonds?
**NAPCC** - National Action Plan for CLimate Change
**NDC** - Nationally Determined Contribution
27
1st countries that started Green Bonds?
France & Poland
In 2017
28
When was Green Bonds announced in India?
Union Budget 2022-23
29
First Green Bonds in India, were floated by?
by Indore Municipal Corporation
through National Stock Exchange (NSE)
30
Sovereign Green Bonds, backed by GoI, were 1st floated by?
RBI
31
What are the names of RBI Sovereign Green Bonds?
2028 & 2033 Series
32
Characteristics of Green Bonds?
- Long term securities
- Tradable
- Carry coupon rate
33
Green Bond Framework is created by?
Department of Economic Affairs
under Ministry of Finance
34
How many components are there in Green Bond Framework as per the guidelines of?
4 components
as per the guidelines of **International Capital Market Association (ICMA)**
35
What is the 1st component of the Green Bond Framework?
**Use of Proceeds**
- Encourages Energy Efficiency in resource utilisation
- Reduces carbon emissions & greenhouse gases
- Promotes climate resilience and/or adoption
- Values & improves natural ecosystems & biodiversity, especially in accordance with SDG
36
What are the 4 components of Green Bond Framework by ICMA?
**UPMR** - upma with an r
1. Use of Proceeds
2. Project Evaluation & Selection
3. Management of Proceeds
4. Reporting
37
Which body is responsible for project evaluation & selection in the Green Bond Framework
Green Finance Working Committee (GFWC)
by Ministry of Finance
38
Who is the chair of the GFWC?
Chief Economic Advisor of GoI
39
Where do proceeds of the Green Bond Framework go?
To the consolidated Funds of India
40
Who keeps track of the proceeds under Green Bonds?
Public Debt Management Cell (PDMC)
41
Who coordinates the preparation of reports under the Green Bond Framework?
**Department of Economic Affairs**
Ministry of Finance
42
When was the scheme, "Formation & Promotion of 10,000 Farmer Profucer Organisation (FPOs)" launched?
2020
43
What is the government outlay for the FPO scheme?
Rs. 6,865 crore
44
What led to the genesis of FPO formation?
- To promote cooperation among cooperatives - better managerial efficiency
- To give say to the 85% small & marginal farmers
45
FPOs are registered under?
Part IXA of Companies Act 2013 or
Cooperative Societies Act
46
What is the target for the number of FPOs to be established?
10,000
with **15% from Aspirational Districts**
47
What is the advisory body in the FPO scheme?
NPMA
## Footnote
by SFAC- Small Farmer's Agribusiness Consortium
48
Which body in FPO initiative oversees implementation and releases funds?
NPMA
National Project Management Agency
49
Executive, on-ground functions, for FPO formation - conducting surveys and mobilising farmers into groups of 10-20, is done by?
Cluster Based Business Organisation (CBBO)
50
Agency Specifically responsible for training & capacity building of FPOs
- BIRD - Banker's Institute of Rural Development - Lucknow
- Laxmanrao Inamdar National Academy for Co-operative R&D - Gurgaon
51
Types of groups that can be formed by farmers under FPO with the help of CBBO?
5 types:
SHG, FIG - Farmer Interest Group,
Farmer Club, JLG - Joint Liability Group, RMG - Rythu Mitra Group
52
What are the steps involved in the formation of FPOs?
**FSN-DP**
Forming, Storming, Norming, Developing, Performing
53
How many of these groups, formed by CBBOs, come together to form the legal entity that is an FPO?
15-20 such groups
With min **300 ( plains/hills) or 100 (hilly)** & max 500 farmers
54
What is the number of farmers per FPO that the government wants ideally and the number that is mandated in the constitution?
GoI: 500/200
**Section 581(C)** Companies Act 2013: 10+
55
Facilities that FPOs receive?
1. Financial Support
2. 5-year hand-holding support from CBBOs
56
Which model is the new Draft National Policy on FPO modeled after
following 3 tier structure of Gujrat's Amul Cooperatives
Village Level - District level - State Level
57
The new Draft National Policy on FPO was recommended by?
Export Group under the chairmanship of Faiz Ahmed Kidwai
58
What is the Financial Assistance FPOs receive?
- 18L / FPO for 3 years
- Rs. 2000/ farmer equity grant (Rs. 15 L per FPO ceiling)
- Credit guarantee facility upto Rs. 2 crore / FPO
59
Full form of MSP
Minimum Support Price
60
What is MSP? (Definition)
A **Market Intervention**
by the Government to **protect poor farmers**
from malpractices of the mandi system and also market forces
61
When was MSP introduced in India?
1966-67
62
Why excess production from technological reforms in agriculture, caused farmers to face losses?
1. By the basic laws of economics:
**Increase in supply**, declined prices,
hence profits for farmers
2. Middle men in APMCs: **cartelisation**
where farmers are forced to sell at even lower prices triggering **distress sales**
63
Why was MSP introduced in the first place?
It was a need of the time -
To protect the 85% small and marginal farmers from market forces and distress sales
64
In current times, why is MSP discouraged?
- **Regional imbalances:** Implementation is not uniform,
- **Market Distortion** - It doesn't rectify the problem of middle men but distorts demand and supply rates
- **Food Inflation** - Essential items are often sold at higher prices than international prices
- **India a WTO signatory** - WTO does not recommend. India at risk of violating the 10% subsidy norm
- **A short term solution to a long term problem**
65
Who recommends MSP?
**CACP**
Commission of Agricultural Costs & Prices
66
Who Approves MSP?
CCEA
67
Current economics of MSP? When was it introduced?
1.5 x (A2 + FL)
2018-19
68
Economy of MSP recommended by the Swaminathan Committee?
50% **more than** C2 costs, i.e.,
**(C2 + 50%)**
| Also the demand of farmer
69
What does Cost A1 mean in Agricultural Cost Economics?
**Value of inputs + taxes**
Value of hired human labour, value of hired bullock carts, value of owned machine labour, value of seed, etc
70
What does Cost A2 of Agricultural Economic Cost mean?
A1 + Rent paid for leased land
| What government considers
71
Cost B1 of Agricultural Economic Costs means? (notimp)
A1 + interest value of owned fixed capital assets (excluding land)
| Value of input + taxes + interest of fixed cap
72
Cost B2 of Agricultural Economic Costs means? (notimp)
B1 + Rental value of owned land (net land revenue) + Rent paid for leased land
73
Cost C1 of Agricultural Economic Costs means?
B1 + value of Family Labour (FL)
74
Cost C2 of Agricultural Economic Costs means?
B2 + value of Family Labour (FL)
Recommended by Swaminathan Committee
| Value of input + taxes + interest of fixed cap + rent value of land + leased land
75
When was the Swaminathan Commission formed?
Nov 2004
76
Determinants of MSP considered by CACP when recommending?
(remember upto 8)
1. Cost of Production
2. Changes in input prices
3. Input Output price parity
4. Demand & Supply
5. Intercrop price Parity
6. Effect on General Price Level
7. International Price Situation
8. Parity between price paid and received by farmers
9. Effect on issue prices and implications for subsidy
10. Effect on industrial cost structure
77
What does the Commission take into account when formulating the recommendation in respect to MSP or other non-price agri measures?
- Comprehensive view of the entire structure of the economy of a particular commodity or its group
- other determinants
78
Why should MSP not be legalised?
1. Flawed Arithmetic
2. Benefit a drop in the ocean
3. High inventory cost - high fiscal burden
4. Trade Distortion
5. Crop & Regional imbalances
6. Degradation of environment
7. Fanning Inflation
79
Why should MSP be legalised?
1. Provide price support during Distress Sales
2. Decision Making - MSP announced before sowing
3. Benchmark for Open Market - 1/3rd produce sold in open market
4. Maintaining Buffer Stock
5. Swift running of welfare schemes like PMGKY & TPDS
6. Give a say to 85% Small & Marginal Farmers in India
80
*The farmer is the only man in our economy who buys everything at retail, sells everything at wholesale and pays the freight both ways*
**John F. Kennedy**
irony of the indian economic system
81
*If Agriculture goes wrong, nothing else will have a chance of going right*
M.S. Swaminathan
82
Who approves FRP?
CCEA
83
IREDA establish in which year and who is their CMD?
Founded on 1987
CMD: Pradip Kumar Das
84
RBI's responsibility towards monetary policy is mandated by?
**Section 45ZB, RBI Act, 1934**
Monetary policy is concerned with supply of money, i.e. controlling inflation, ensuring liquidity - it is about demand and supply
85
Expenditure side reforms?
**FRBM Act 2003**
Fiscal Responsibility & Budget Management Act 2003 - Vajpayee government
86
Headquarter of ADB?
Manilla
87
Chairperson of ADB
**Masatsugu Asakawa**
5 year term from 2021
88
How many members make up the monetary policy committee (MPC)? When was it first constituted?
6 member monetary policy committee
1st constituted in September 2016
89
The oldest and largest national trade union of bank employees in India is? It was founded in?
All India Bank Employees Association (AIBEA), 1946
90
Division of RBI that prints and mints Indian currency notes?
Bharatiya Reserve Bank Note Mudran (BRBNM)
91
National Legal Services Authority of India was set up in 1995, for? Under which Act?
* Free legal services to eligible candidates
* Organise Lok Adalats for speedy resolution
Legal Services Authorities Act 1987
92
Interest on Soverign Gold Bonds are paid to investors in what frequency? What is the interest rate?
Semi-annually
2.5% pa fixed
93
Weightage of items in CPI
* Food - 45% - highest weightage
* Clothing/footware
* Housing
* Fuel
* Tobacco/Pan/intoxicants
* Misc
| includes services
94
Weightage of items in WPI?
* Fuel
* Manufactured Goods
* Primary articles
95
Disguised unemployment means?
marginal productivity of labour is 0
96
Impact per rupee spent onsocial welfare is studied under?
New Welfare Approach
97
CSR was launched in? It is under section?
2014
Section 135 of Companies Act 2013
98
Which state tops in CSR?
Maharashtra
99
Top 4 Development Sector in CSR?
Education
Health and Sanitation
Rural Development
Environment, Animal Welfare & Conservation
100
A well known emperical relationshipthat shows how the life expectancy of a country's people is related to its per capita income. Identify the curve
Preston Curve
| People in richer countries live longer than those in poorer countries
101
7 pillars of Doubling Farmer's Income 2016 Acc to Ashok Dalwai Committee
1. improvement in crop productivity
2. in livestock productivity
3. Resource use efficiency or savings
4. Increase in the cropping intensity
5. Diversification
6. Improvement in real prices
7. Shift from farm to non-farm occupations
102
Cereals has the highest weight under Food and beverages category in CPI, it is? Weight of vegetables and fruits is?
9%
Vegetable: 6%
Fruits: 2.8%
103
Features of a Developed Economy
- Diversified & advanced industrial and service sectors
- High per capita income (above $12,000-$25,000 or more)
- HDI sore above 0.8
104
Cooperative societies is a state, union or concurrent list
State list of 7th Schedule
105
When Cooperative Societies carry out the business of banking they come under the purview of ____ and are licensed under the ____ Act of ____
RBI
Banking Regulation Act 1949
106
Ministry of Cooperation was formed in?
2021
107
How many cooperatives are there in India?
8 lakh out of global 30L
| largest globally
108
India accounts for ____% of all cooperatives and over ____% of indian population is a part of a cooperative
27%
20%
| globabl average 12% people
109
Of the 300 largest cooperative, ____ are from India, with ____ at the top positions
15
IFFCO
followed by AMUL
110
India ranks ____ in Asia Pacific and ____ in the world in terms of no of cooperatives
2nd
6th
| Japan top in Asia; USA in the world
111
Which cooperative has the maximum coverage in India?
Housing
112
Short term credit is ____ tiered and long term credit is ____ tiered
3 tiered (PACS, District, state)
2 tiered (Primary co-op bank, State Co-op Bank)
113
Youngest subsidiary of NABARD. A trustee company, incorported in 2020. To manage credit guarantee funds and promote flow of funds to desired sections.
NABSanrakshan
| CGFT FPO and CGFT AHD are currently under it
114
How many FPOs have been registered across the across till date?
Which state has the highest number of FPOs?
8875
Karnataka
115
How many NDC does India have? How many has India achieved?
2/8
116
Which 2 NDC has India achieved?
* Reduce emissions intensity of its GDP by 45% by 2030
* Increase cumulative electric power installed capacity from non-fossil fuel sources to 50% by 2030
* Net 0 by 2070
117
What amount is considered bulk deposit in RRB?
Rs. 1 crore
118
National Fund for Climate Change is managed by?
NABARD
119
Equity grant amount FPOs are eligible for?
Rs. 2000/ farmer
Rs. 15 L per FPO ceiling
120
CACP recommends msp. It includes __ kharif, __ rabi and __ zaid crops
14 - 6 - 2
| 22 overall
121
MSP comprises of __ cereals, __ pulses, __ oilseeds and ___ commercial crops
7 - 5 - 7 - 3
122
Govt aims to promote 10,000 FPOs by
2027-28
| SFAC supports formation & competitiveness
123
FPO can be registered under Companies Act 2013 due to modifications of which section?
Section 465
124
Foundation for Development of Rural Value Chains (FDRVC) is one of the implementing agencies for FPOs. It's HQ is?
New Delhi
