Doubt Clearance Thread: UPSC 2021

Schemes related to environment are not covered by Mrunal. Rest all covered. No need to refer any other material.

I have read the current affairs for Prelims but haven't made notes. Now I am struggling. Can anybody tell whether I should rely on these compilations now??

https://drive.google.com/file/d/1S5RMh4EYe6WJwPQu7scWgQygGv3itXQV/view?usp=sharing

do Central Government need to keep government securities as Collateral for availing money under ways mains and advance?

@balwintejas @AzadHindFauz bhai log! 

No. Special WMAs are given on collateral (and hence, are at a lower rate). Ways and means advances do not require collateral. 

I am not aware if they are available for states only. however, in recent times states were allowed a higher limit. 

Also, it's lower than repo rate. Because these become more secured (having backed by collateral) Normal WMA are at repo rate. 

Also I just checked it's written, that States can avail normal wma after exhausting SDRs/S-WMAs. Is it true?

No. wMAs are always collateral-free loans.The very fact that this route is taken under exigencies means they must not put borrower under any obligation to avail the loans!

So, the Central government can avail loans without collateral under wMA. The limits on such loans are mutually decided by the RBI and the govt. This limit may be breached too. In that condition, the loan available is considered under overdraft and thus, a higher interest rate is charged.

The States have one extra mechanism available that gets triggered before the wMA. wMA is always collateral-free loans. But, the states can also take loans from the RBI by pledging securities. This mechanism available only to them is called Special drawing facility. There is a limit to that as well. If the states want more money over the limit, they can now get collateral-free (wMAs) loans.

You can go briefly through the recommendations ofSumit Bose committeeon wMAs for states. Will take 10 minutes!

Interest rate is all about risk-assessment. If risk is less, borrowing rates will be depressed than normal. Lower rates below the repo rate is because-

1. It is applicable only for SDF (not wMA) which is collateral-based loan facility. So, even if defaults happen, less worries.

2. The state governments investment in GSecs is assessed before loans are lent. Those who have invested more, have higher SDF limit.

3. The very fact that wMA is at repo rate, it being a collateral-free loan. You can't have collateral-based loan at parity with a collateral-free loan. Risks are different. So, 1% less rate for SDF.

Can someone help me with the SFG Batch 2 schedule? I am unable to access the excel sheet. It throws an error- 

Sorry, unable to open the file at this time.

Please check the address and try again.

Guys any idea about this? Couldn’t find any other source which says there’s a fixed term for AG (as opposed to pleasure of president)

Article 309 read with Article 76implies the government can make rules with regards service conditions of Attorney General. So, the government has issued Law Officer (Conditions of Service) Rules, 1987.

These rules state the term as 3 years. These are not fixed. He may be terminated from service anytime. The Attorney General is always at the pleasure of President.Take this as the gospel of truth!

Same. I need to access it too. But you can go to the sfg batch 2 channel where they have compiled subject wise tests. First page has the test numbers and respective syllabus.

https://forumias.com/post/detail/SFG-2020Batch-2-Question-Papers-Compilation-1588060549

Are you able to access it? This too is not working for me!

404. That’s an error.

The requested URL was not found on this server. That’s all we know.

I was able to access it few days back :( 

@root can this be resolved at the earliest. 

 Had downloaded the question papers.

https://drive.google.com/drive/folders/1-0xN4nsw8ifYNPaS4szjo0GD_UsBvWC7

Don’t have explanation sheets though.

Thanks a lot. This solves my problem completely. Appreciate it!

There are a few errors in the Laxmikant book that I feel must be shared with you all.

1. Private members can introduce the money bills. There is no bar.Please refer Rule 65 of the Rules of Procedure and Conduct of Business in LS

Laxmikant says- Private members cannot introduce money bills.

2. The office of Chief whip is neither mentioned in the constitution nor in the Rules of Procedure, but it is mentioned in a parliamentary statute. See THE LEADERS AND CHIEF WHIPS OF RECOGNISED PARTIES AND GROUPS IN PARLIAMENT (FACILITIES) ACT, 1998

Laxmikant says- It is not mentioned even in a Parliamentary statute and is based on the conventions of the parliamentary government. This is wrong!

Please keep in mind these corrections. The UPSC doesn't pick questions from Laxmikant unlike these coaching institutes :)

No..Central government has not to pledge its collateral.
The state government can avail WMA through collateral which will be cheaper than the repo rate but after its exhaustion, it will have to pay a higher interest rates than the repo.