Daily Quiz: UPSC Prelims Marathon- July 11

Both the statements are correct. The question is asking about incorrect statements. Thus, the correct answer is d.

Statement 1 and 2 are correct. As per the new definition, an entity will be considered as a Start-Up if its turn-over is less than Rs 25 crore and has not completed seven years from the date of its incorporation/registration. In the definition, the change is with respect to the time period which was five years. The new definition has increased it to 7 years taking into the consideration the long gestation period involved in establishing start-ups.

Further Details:

• The scope of definition of start-up will also be widened to include scalability of business model with potential of employment generation or wealth creation.
• For the Start-Ups in the biotechnology sector, they will be considered as start-ups for a period of up to 10 years from the date of incorporation/registration.
• The new definition and amendments will help to ease of starting new business and will promote the start-up ecosystem.

Option a is incorrect. ARCs are regulated by RBI, and not SEBI. Option b and c are correct statements.

Asset Reconstruction companies (ARCs):

• ARC is a company registered under Section 3 of the Securitization and reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002.
• The main advantage of ARCs is they help the banks to concentrate on normal banking operations rather than dealing with stressed assets.

Both the statements are correct.

Details on AMRUT scheme:

• The scheme was launched with the focus of the urban renewal projects is to establish infrastructure that could ensure adequate robust sewage networks and water supply for urban transformation.
• The focus of the urban renewal projects under this scheme is to establish infrastructure that could ensure adequate robust sewerage networks and water supply.
• Some of the broad targets of AMRUT scheme are ascertaining that everyone has access to tap water and sewerage facilities, greenery like parks and open spaces are well maintained, digital and smart facilities like weather prediction, internet and WiFi facilities, pollution reduction by encouraging the public for using cheaper but secure public transport.
• The scheme is dependent with public private partnership model (PPP) model.

Both the statements are correct.

More about Municipal Bonds:

• Institutional investors, as well as the public, can buy Municipal Bonds.
• The corporations can use the revenues earned from the developmental projects like Metro rail network to repay the interest and principal on these bonds.
• These municipal bonds have now been permitted for public offering by SEBI.

Neither of the 2 statements is correct.

Statement 1 is incorrect. Existing schemes to promote merchandize exports have been merged into a single Merchandise Exports from India Scheme (MEIS). In this scheme, the incentives are to be provided in the form of duty scrips as % of FOB(free on board) value of exports.

Statement 2 is incorrect. The foreign Trade Policy 2015 makes all duty free scrips freely transferable. These scrips can be used for payment of custom duty, excise duty and service tax also.

Scrip literally means a “chit” and refers to a form of credit. The Duty free scrips are provided to the exporters under various export promotion schemes of the government. The scrips may be transferable or non-transferable. If they are transferable, the holder of these scrips can sell them in market at discount. If the scrips are non-transferable, they come with actual user condition and the holder can use it to import inputs or capital goods duty free.

Both the statements are correct.

About Human Development Index (HDI):

• The Human Development Index (HDI) is a summary measure of average achievement in key dimensions of human development: a long and healthy life, being knowledgeable and a decent standard of living.
• The health dimension is assessed by life expectancy at birth, the education dimension is measured by mean of years of schooling for adults aged 25 years and more and expected years of schooling for children of school entering age. The standard of living dimension is measured by gross national income per capita.
• The HDI simplifies and captures only part of what human development entails. It does not reflect on inequalities, poverty, human security, empowerment, etc.

Statement 1 is incorrect. Higher the GII value the more disparities between females and males and the more loss to human development.

Statement 2 is correct. It was introduced by UNDP.

More about Gender Inequality Index:

• The GII is an inequality index.
• It measures gender inequalities in three important aspects of human development – reproductive health, measured by maternal mortality ratio and adolescent birth rates; empowerment, measured by proportion of parliamentary seats occupied by females and proportion of adult females and males aged 25 years and older with at least some secondary education; and economic status, expressed as labour market participation and measured by labour force participation rate of female and male populations aged 15 years and older.
• The GII is built on the same framework as the IHDI-to better expose differences in the distribution of achievements between women and men.
• It measures the human development costs of gender inequality. Thus the higher the GII value the more disparities between females and males and the more loss to human development.