Daily Current Affairs MCQ- May 2, 2023 - UPSC MCQ

The Central Government has recently made MUDRA loans given to joint liability group micro enterprises eligible for the Credit Guarantee Fund for Micro Units.

About MUDRA Loans:

• MUDRA Loan is offered under the Pradhan Mantri Mudra Yojana (PMMY).
• PMMY was launched in 2015 with the aim to help small-scale businesses expand and attain success. 
• Support under the scheme: It provides loans of up to 10 lacks to non-corporate, non-farm small/micro enterprises. 
• Purpose of loan: To start a new business, enhance existing or meet working capital requirements, and for business expansion purposes
• These loans are classified as MUDRA loans under PMMY. 
• Eligibility: Any Indian Citizen who has a business plan for a non-farm sector income-generating activities such as manufacturing, processing, trading, or service sector.
• These loans are given by Commercial Banks, RRBs, Small Finance Banks, MFIs, and NBFCs. 
• Types of loans:
• Shishu - Covering loans up to Rs 50,000; 
• Kishor - Covering loans above Rs 50,000 and up to Rs 5 lakh; 

Tarun - Covering loans above Rs 5 lakh and up to Rs 10 lakh.

Hence only statement 2 is correct.

The Supreme Court of India recently ruled that mere membership in an unlawful association is sufficient to constitute an offense under the stringent provisions of the Unlawful Activities Prevention Act (UAPA), 1967.

About Unlawful Activities Prevention Act (UAPA):

• The UAPA was enacted in 1967.
• It lays down the definitions and rules for designating an organization as an "unlawful association" if it is engaged in certain types of activities.
• ‘Unlawful activity’ is defined as any action taken by an individual or association – through an act, words, spoken or written, or by signs or visible representation – which is intended to, or supports a claim to, bring about the cession of a part of the territory of India, or the secession of a part of the territory of India from the Union, or which incites any individual or group of individuals to bring about such cession or secession.
• It covers activities which disclaim, question, disrupt or are intended to disrupt the sovereignty and territorial integrity of India, and which cause or intend to cause disaffection against India.
• In 2004, the UAPA was amended, and 'terrorist activities' were brought within its fold, under which 34 outfits, including the Lashkar-e-Taiba and the Jaish-e-Mohammad, were banned.
• Under the Act, the central government may designate an organization as a terrorist organization if it:
• commits or participates in acts of terrorism;
• prepares for terrorism;
• promotes terrorism;
• is otherwise involved in terrorism;
• The 2019 Amendment gave the Home Ministry the power to designate individuals as terrorists.
• The Act extends to the whole of India.
• It also applies to citizens of India who are abroad, persons in service of the Indian government, and persons on ships and aircraft registered in India.

Hence both statements are correct.

The Reserve Bank of India (RBI) recently announced that its rate-setting panel, the Monetary Policy Committee (MPC), will meet six times in the next financial year (FY24).

About Monetary Policy Committee (MPC):

• The Reserve Bank of India Act, 1934 (RBI Act) has been amended by the Finance Act, 2016  to provide for a statutory and institutionalized framework for a MPC.
• Under Section 45ZB of the amended RBI Act, 1934, the central government is empowered to constitute a six-member MPC.
• Function: The MPC is entrusted with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. 
• Composition:
• MPC will have six members - the RBI Governor (Chairperson), the RBI Deputy Governor in charge of monetary policy, one official nominated by the RBI Board, and the remaining three members would represent the Government of India.
• The external members hold office for a period of four years.
• The quorum for a meeting shall be four Members, at least one of whom shall be the Governor and, in his absence, the Deputy Governor, who is the Member of the MPC.
• The MPC takes decisions based on a majority vote. In case of a tie, the RBI governor will have the second or casting vote.
• The decision of the MPC would be binding on the RBI.

Hence only statement 1 is correct.

The Lok Sabha recently passed the Finance Bill 2023 giving effect to tax proposals.

About Finance Bill:

• Financial Bills are also called "Act for Appropriation of Funds for Appropriations".
• Financial bills are responsible for fiscal matters such as government spending or revenue.
• Financial bills are a component of the union budget. The Indian Constitution's Article 110(a) requires that a finance bill be presented together with the budget.
• It proposes all the necessary legal changes required for the proposed tax adjustments.
• When a question arises about whether a Finance bill is a money bill or not, the speaker of the house decides on the matter, and his decision shall be final in this regard.

What is a Money Bill?

• Under Article 110(1), a Bill is said to be a Money Bill if it only contains provisions related to taxation, borrowing of money by the government, and expenditure from or receipt to the Consolidated Fund of India.
• Bills that only contain provisions that are incidental to these matters would also be regarded as Money Bills.
• Who decides if a Bill is a Money Bill? The Speaker certifies a Bill as a Money Bill, and the Speaker’s decision is final.
• Passage of Money Bills:
• A Money Bill may only be introduced in Lok Sabha on the recommendation of the President.
• It must be passed in Lok Sabha by a simple majority of all members present and voting.
• Following this, it may be sent to the Rajya Sabha for its recommendations, which Lok Sabha may reject if it chooses to. If such recommendations are not given within 14 days, it will be deemed to be passed by Parliament.

Hence only statement 1 is correct.

The government recently hiked the securities transaction tax (STT) by 23.52 percent on the sale of options and 25 percent on the sale of futures contracts.

About Securities Transaction Tax (STT):

• What is it? It is a direct tax charged on the purchase and sale of securities listed on the recognized stock exchanges in India.
• It is levied and collected by the central government of India.
• STT is governed by Securities Transaction Tax Act (STT Act), and STT Act has specifically listed various taxable securities transactions, i.e., transactions on which STT is leviable.
• Taxable securities include equities, derivatives, or equity-oriented mutual funds investment units (excluding commodities and currency).
• The rate of taxation is different for different types of securities.
• STT is not applicable to off-market transactions or to commodity or currency transactions. 
• The liability of applying the STT is on the broker when the client undertakes transactions in the stock market. The collected amount is then paid to the government.
• The charges and rate of STT are reflected on the contract notes which a broker provides to its clients for every execution of trades. 

Hence only statement 2 is correct.

As per the amendments made in Budget 2023, no benefit of indexation for the calculation of long-term capital gains tax on debt mutual funds will be available for investments made on or after April 1, 2023.

• Debt funds are mutual fund schemes which invest in fixed-income generating securities such as Commercial Papers (CP), Certificate of Deposit (CD), Corporate Bonds, T-Bills, government securities and other money market instruments.
• These instruments have a fixed maturity date and interest rate that the buyers could earn till the maturity of the security.
• The capital gains tax is the levy on the profit that an investor makes when an investment is sold. It is owed for the tax year during which the investment is sold.
• It applies to capital assets, which include stocks, bonds, digital assets like cryptocurrencies and NFTs, jewellery, coin collections, and real estate.
• Types of capital gain tax
  • Long-term Capital Gains Tax: It is a levy on the profits from the sale of assets held for more than a year. The rates are 0%, 15%, or 20%, depending on the tax bracket.
  • Short-term Capital Gains Tax: It applies to assets held for a year or less and is taxed as ordinary income.

Hence only statement 1 is correct.

The Union Minister of Road Transport and Highways recently informed the Lok Sabha about the detailed feasibility studies of eight projects for Ropeway implementation under the Parvatmala programme.

• The National Ropeway Development Programme also known as ‘Parvatmala’ (Parvatmala means garlanding mountains) was announced in the 2022-23 Union Budget.
• Aim: To decongest mountainous areas where road and train connectivity cannot be upgraded beyond a limit.
• Under phase-I of the project, 30 priority points or stretches will be constructed
• Parvatmala will construct ropeways in mountainous terrains of India under the Public Private Partnership (PPP).
• Nodal Ministry: The Ministry of Road Transport and Highways undertakes the project.
• The ministry will oversee all the affairs related to the ropeway construction, research, and policy-making.
• Implementing Agency: The National Highways Logistics Management Limited (NHLML) has been mandated by the ministry to implement the project. It is a 100% owned SPV of the National Highways Authority of India (NHAI).

Hence only statement 2 is correct.

Recently, researchers at the International Advanced Research Centre for Powder Metallurgy and New Materials (ARCI), have developed a novel bi-metallic joining process using a technique called laser powder bed fusion (L-PBF) or selective laser melting (SLM) technique of metal 3D printing.

• Researchers have developed a novel bi-metallic joining process to create a bimetallic composite made from copper and steel by using the Laser powder bed fusion (L-PBF) technique.
• Powder bed fusion (PBF) is a 3D printing method that joins powdered material point by point using an energy source, typically a laser beam or an electron beam.
• It is one of the most common 3D printing techniques used for industrial additive manufacturing (AM).
• PBF is possible with both metals and polymers, although not all materials are compatible.
• Due to the combustible nature of the metal powders, LPBF is usually performed under inert gas such as argon, or under a vacuum. 

Hence both statements are correct.

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister of India, has given its approval for the Minimum Support Price (MSP) for Raw Jute for the 2023-24 seasons. 

• A minimum support price (MSP) is a minimum price for any crop that the Government considers as remunerative for farmers and hence deserving of “support”.
• It is also the price that Government agencies pay whenever they procure a particular crop from the farmers.
• There is currently no statutory backing for these prices, nor any law mandating their enforcement.
• Crops covered under MSP: At present, the Central Government sets MSP for 23 crops.
• The Government announces the MSP at the start of each cropping season (Rabi and Kharif).
• The MSP is decided after the Government exhaustively studies the recommendations made by the Commission for Agricultural Costs and Prices (CACP).
• CACP is an attached office of the Ministry of Agriculture and Farmers Welfare.

Hence both statements are correct.

The Supreme Court recently said that the period of parole granted to convicts during the Covid-19 pandemic to prevent overcrowding in prisons cannot be counted as part of their actual sentence period and has to be excluded from it.

• Parole is a system of releasing a prisoner with a suspension of the sentence.
• The release is conditional, usually subject to behaviour, and requires periodic reporting to the authorities for a set period of time.
• It is not a right of a prisoner and may be denied to a prisoner even when he makes out a sufficient case.

Hence both statements are correct.