Daily Current Affairs MCQ - August 2, 2021 - UPSC MCQ

Directorate General of Foreign Trade (DGFT) organisation is an attached office of the Ministry of Commerce and Industry and is headed by Director General of Foreign Trade. DGFT is responsible for implementing the Foreign Trade Policy with the main objective of promoting India’s exports. Keeping in line with liberalization and globalization and the overall objective of increasing of exports, DGFT has since been assigned the role of “facilitator”. The shift was from prohibition and control of imports/exports to promotion and facilitation of exports/imports, keeping in view the interests of the country.

• Organisation for Economic Co-operation and Development (OECD) is an intergovernmental economic organisation, founded in 1961 to stimulate economic progress and world trade.
• It is a forum of countries describing themselves as committed to democracy and the market economy, providing a platform to compare policy experiences, seek answers to common problems, identify good practices and coordinate domestic and international policies of its members.
• Generally, OECD members are high-income economies with a very high Human Development Index (HDI) and are regarded as developed countries.
• The OECD is an official United Nations observer.
• Although the OECD does not have the power to enforce its decisions, which further require a unanimous vote from its members, it is recognised as a highly influential publisher of mostly economic data through publications as well as annual evaluations and rankings of member countries.

Which banks are insured by the DICGC?

• Commercial Banks: All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.
• Cooperative Banks: All State, Central and Primary cooperative banks, also called urban cooperative banks, functioning in States / Union Territories which have amended the local Cooperative Societies Act empowering the Reserve Bank of India (RBI) to order the Registrar of Cooperative Societies of the State / Union Territory to wind up a cooperative bank or to supersede its committee of management and requiring the Registrar not to take any action regarding winding up, amalgamation or reconstruction of a co-operative bank without prior sanction in writing from the RBI are covered under the Deposit Insurance Scheme. At present all co-operative banks are covered by the DICGC.

Primary cooperative societies are not insured by the DICGC.

A space station is essentially a large spacecraft that remains in low-earth orbit for extended periods of time. It is like a large laboratory in space, and allows astronauts to come aboard and stay for weeks or months to carry out experiments in microgravity.

For over 20 years since its launch, humans have continuously lived and carried out scientific investigations on the ISS under microgravity conditions, being able to make breakthroughs in research not possible on Earth.

The ISS is a pathbreaking collaborative effort between five participating space agencies: NASA (United States), Roscosmos (Russia), JAXA (Japan), ESA (Europe) and CSA (Canada).

The Insolvency and Bankruptcy Code (Amendment) Bill, 2021, passed by Lok Sabha has proposed ‘pre-packs’ as an insolvency resolution mechanism for Micro, Small and Medium Enterprises (MSMEs). The Bill will replace The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2021.

A pre-pack envisages the resolution of the debt of a distressed company through a direct agreement between secured creditors and the existing owners or outside investors, instead of a public bidding process.

One of the key criticisms of the Corporate Insolvency Resolution Process (CIRP) has been the time it takes for resolution. The pre-pack in contrast, is limited to a maximum of 120 days with only 90 days available to stakeholders to bring a resolution plan for approval before the NCLT.

Another key difference between pre-packs and CIRP is that the existing management retains control in the case of pre-packs; in the case of CIRP, a resolution professional takes control of the debtor as a representative of financial creditors. Experts note that this ensures minimal disruption of operations relative to a CIRP.

The pre-pack mechanism does however, allow for a ‘Swiss challenge’ to any resolution plan that provides less than full recovery of dues for operational creditors.

Under the Swiss challenge mechanism, any third party would be permitted to submit a resolution plan for the distressed company, and the original applicant would have to either match the improved resolution plan or forego the investment.

• e-RUPI is a cashless and contactless method for digital payment. It is a Quick Response (QR) code or SMS string-based e-voucher, which is delivered to the mobile of the users.
  • The users will be able to redeem the voucher without needing a card, digital payments app, or internet banking access, at the service provider.
  • It connects the sponsors of the services with the beneficiaries and service providers in a digital mode without any physical interface.
  • The mechanism also ensures that the payment to the service provider is made only after the transaction is completed.
  • The system is pre-paid in nature and hence, assures timely payment to the service provider without the involvement of any intermediary.
• In effect, e-RUPI is still backed by the existing Indian rupee as the underlying asset and specificity of its purpose makes it different to a virtual currency and puts it closer to a voucher-based payment system. Hence, statement 1 is not correct.
• It is expected to ensure a leak-proof delivery of welfare services and can also be used for delivering services under schemes meant for providing drugs and nutritional support under Mother and Child welfare schemes, drugs & diagnostics under schemes like Ayushman Bharat Pradhan Mantri Jan Arogya Yojana, fertiliser subsidies etc. Hence, statement 2 is correct.
• Even the private sector can leverage these digital vouchers as part of their employee welfare and Corporate Social Responsibility (CSR) programmes. Hence, statement 3 is correct.

• The United Nations Security Council (UNSC) was established by the UNs Charter as one of the six main organs of the United Nations.
  • The UNSC has been given primary responsibility for maintaining international peace and security and may meet whenever peace is threatened.
  • While other organs of the UN make recommendations to member states, only the Security Council has the power to make decisions that member states are then obligated to implement under the Charter. Hence, statement 1 is correct.
  • UNSC is headquartered at NewYork.
• The UNSC is composed of 15 members, 5 permanent and 10 non-permanent.
  • Five permanent members: China, France, the Russian Federation, the United Kingdom, and the United States.
  • Ten non-permanent members: Elected for two-year terms by the General Assembly.
• Voting and Discussions at UNSC:
  • Each member of the Security Council has one vote. Decisions of the Security Council on matters are made by an affirmative vote of nine members including the concurring votes of the permanent members.
    • A "No" vote from one of the five permanent members blocks the passage of the resolution. Hence, statement 3 is not correct.
  • Any member of the UN which is not a member of the Security Council may participate, without vote, in the discussion of any question brought before the Security Council whenever the latter considers that the interests of that member are specially affected. Hence, statement 2 is correct.

• Ozone (composed of three atoms of oxygen) is a gas that occurs both in the Earth’s upper atmosphere and at ground level. Ozone can be “good” or “bad” for health and the environment, depending on its location in the atmosphere.
• The ‘good’ ozone present in the earth’s stratosphere layer protects human beings from harmful Ultraviolet (UV) radiation whereas the ground level ozone is highly reactive and can have adverse impacts on human health. Hence, statement 1 is not correct but statement 2 is correct.
  • Ground level ozone is dangerous for those suffering from respiratory conditions and asthma.
• Ground-level ozone is a colorless and highly irritating gas that forms just above the earth's surface.
  • It is called a "secondary" pollutant because it is produced when two primary pollutants react in sunlight and stagnant air.
    • These two primary pollutants are nitrogen oxides (NOx) and volatile organic compounds (VOCs). Hence, statement 3 is correct.

• The pangolin, also called scaly anteater, is an elongated, armour-plated insectivore mammal.
  • Seven species of pangolin are found across the world, of which, two are found in India, namely Indian pangolin (Manis crassicaudata) and Chinese pangolin (Manis pentadactyla). Hence, statement 2 is not correct.
  • The Indian Pangolin is found throughout the country south of the Himalayas, excluding the north-eastern region while the Chinese Pangolin ranges through Assam and the eastern Himalayas. Hence, statement 1 is correct.
    • The Chinese pangolin is distinguished from other Asian pangolins by its almost helmeted appearance, smaller scales than the Indian pangolin.
• As per International Union for Conservation of Nature (IUCN), the pangolin is part of the “red list”.
  • While the Indian pangolin is listed as “endangered” and the Chinese pangolin has been listed as “critically endangered”. Hence, statement 3 is correct.
  • All pangolin species are listed in Convention on International Trade in Endangered Species (CITES) Appendix I.
  • In India, pangolins, both Indian and Chinese, are protected under Schedule 1 of the Wildlife (Protection) Act 1972.

• In the calculation of the Index of Industrial Production (IIP), the data of the following 8 sectors is measured. Eight core sectors comprise 40.27% of the weight of items included in the Index of Industrial Production (IIP). Hence, statement 1 is correct.
• It is compiled and published monthly by the National Statistical Office (NSO), Ministry of Statistics and Programme Implementation. Hence, statement 2 is correct.
• The eight-core sector industries that are measured under IIP, in decreasing order of their weightage:
  • Refinery Products> Electricity> Steel> Coal> Crude Oil> Natural Gas> Cement> Fertilizers.
  • Hence, statement 3 is not correct.

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