Current Affairs Quiz 02 January 2023

Ans;- b) Only 2

Explanation;-

• As question asked to choose incorrect the 2nd statement is incorrect because it is after 90 days it will be NPA not 180 days.

About NPA

• A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 90 days, but this can depend on the contract terms.
• According to International Monetary Fund npl is as follows;-

1. Payments of interest and principal are past due by 90 days or more.
2. At least 90 days of interest payments have been capitalized, refinanced or delayed by agreement.
3. Payments are less than 90 days overdue, but there are other good reasons to doubt that payments will be made in full”.

• By bank regulatory definition, non-performing loans consist of:-
1. other real estate owned which is taken by foreclosure or a deed in lieu of foreclosure,
2. loans that are 90 days or more past due and still accruing interest, and
3. loans which have been placed on nonaccrual (i.e., loans for which interest is no longer accrued and posted to the income statement).

• In India, non-performing loans are common in the agricultural sector where the farmers can’t pay back the loan or the interest amount mainly as a result of losses due to floods or drought.
• Generally NPL problems are resolved in two ways:-
1. Centralization – This happens when all the concerned parties including the banks, regulators and government get together to find solutions.
This generally takes the form of a central organization/agency such as an Asset Management Company.
2. Decentralization – This approach involves steps taken by the affected banks. The decentralized approach is common for bad loans arising from bad lending. In this approach, the banks are left alone to manage their own bad loans by giving them incentives, legislative powers, or special accounting or fiscal advantages.

Answer: C
Juvenile Justice (Care and Protection of Children) Act, 2015
· The Juvenile Justice (Care and Protection of Children) Act, 2015 replaced the Juvenile Justice (Care and Protection of Children) Act, 2000 to comprehensively address children in conflict with law and children in need of care and protection.
· The Act changes the nomenclature from ‘juvenile’ to ‘child’ or ‘child in conflict with law’.
· Also, it removes the negative connotation associated with the word “juvenile”.
· It also includes several new and clear definitions such as orphaned, abandoned and surrendered children; and petty, serious and heinous offences committed by children.
· The 2015 law also included special provisions to tackle child offenders committing heinous offences in the age group of 16-18 years.
· It mandates setting up Juvenile Justice Boards and Child Welfare Committees in every district. Both must have at least one-woman member each.
· A separate new chapter on Adoption to streamline adoption procedures for an orphan, abandoned and surrendered children,
· Also, the Central Adoption Resource Authority (CARA) was granted the status of a statutory body to enable it to perform its function more effectively.
· All Child Care Institutions, whether run by State Government or by voluntary or non-governmental organisations are to be mandatorily registered under the Act within 6 months from the date of commencement of the Act.

Ans;- c) Only 1 and 3

Explanation;-

• The 2nd statement is incorrect because it is forced to increase interest rates.

Impacts of Non-Performing Assets (NPA)

• Think of nonperforming assets as dead weight on the balance sheet.

1. Banks won’t have sufficient funds for other development projects which will impact the economy
2. To maintain a profit margin, banks will be forced to increase interest rates.
3. Due to the curb in further investments, it may lead to the rise of unemployment.

Answer : C

What is the 103rd Amendment?
• The 103rd Amendment inserted Articles 15(6) and 16(6) in the Constitution to provide up to 10 per cent reservation to EWS other than backward classes, SCs, and STs in higher educational institutions and initial recruitment in government jobs.
• The amendment empowered state governments to provide reservation on the basis of economic backwardness.
○ Article 15 prohibits discrimination on grounds of religion, race, caste, sex, or place of birth.
○ Article 16 guarantees equal opportunity in matters of public employment.
• The additional clauses gave Parliament the power to make special laws for EWS like it does for SCs, STs, and OBCs.

Sinho Commission:
• The EWS reservation was granted based on the recommendations of a commission headed by Major General (retd) S R Sinho. The commission, which was constituted by the UPA government in March 2005, submitted its report in July 2010.
• The Sinho Commission recommended that all below-poverty-line (BPL) families within the general category as notified from time to time, and also all families whose annual family income from all sources is below the taxable limit, should be identified as EBCs (economically backward classes).

Ans. B
Minor Forest Produce:
Minor Forest Produce (MFP)defined in 2007 when the Scheduled Tribes and Other Traditional Forest Dwellers (Recognition of Forest Rights) Act, 2006, was enacted. Section 2(i) of the said Act defines a Minor Forest Produce (MFP) as all non-timber forest produce of plant origin and includes bamboo, brushwood, stumps, canes, Tusser, cocoon, honey, waxes, Lac, tendu/kendu leaves, medicinal plants and herbs, roots, tuber.