IAS Prelims GS Questions and Answers - Mar 31, 2016

ANSWER: Neither 1 nor 2

Explanation:

• The government allowed 100 per cent foreign direct investment (FDI) through the automatic route in the marketplace model of e-commerce retailing.
• As per the guidelines issued by the Department of Industrial Policy and Promotion (DIPP) on FDI in e-commerce, foreign direct investment has not been permitted in inventory-based model.
• At present, 100 per cent FDI is permitted in B2B (business-to-business) transactions under the automatic route.

ANSWER: Only 2

Explanation:

• The marketplace model has been defined as providing an “information technology platform by an e-commerce entity on a digital and electronic network to act as a facilitator between buyer and seller.”
• DIPP said that the e-commerce marketplace may provide support services to sellers in warehousing, and logistics, order fulfilment, call centre, payment collection and other services.
• However, such entities will not exercise ownership over the inventory. Such an ownership over the inventory will render the business into inventory-based model.

ANSWER: 25%

Explanation:

• As per the norms, an e-commerce firm will not be permitted to sell more than 25 per cent of total sales from one vendor or its group companies.
• E-commerce entities providing marketplace will not directly or indirectly influence the sale price of goods or services and shall maintain level playing field.
• This may require some of the existing players to alter their structures.
• The cap of 25% on sales by a vendor on marketplace will ensure a broadbasing of vendors for a true marketplace.

ANSWER: Only 2

Explanation:

• The government has scrapped a decision taken by the previous United Progressive Alliance government to suspend interest credits on inoperative Employees’ Provident Fund (EPF) accounts, in the absence of any fresh contributions in these accounts for three years.
• Interest income was not credited to such accounts since April 1, 2011.
• Under the new rules, EPF accounts will also continue to get interest credits for three years after members reach the age of 58 years. This provision will ensure that EPF members, who choose not to withdraw their deposits immediately at retirement, would continue to earn interest till the age of 61. A similar provision exists under the General Provident Fund (GPF) for government employees allowing them to earn interest for 12 months after they retire at the age of 60.
• Accounts will become inoperative only in cases where employees settle abroad permanently and fail to withdraw their account balance within 36 months. Similarly, in the case of an EPF member’s death, the interest on their savings will be credited for a period of three years after his or her death.

ANSWER: Reliance Defence Ltd.

Explanation:

• Reliance Defence Ltd. and Rafael Advanced Defence Systems Ltd. of Israel agreed to partner to make weapons including air-to-air missiles, air defence systems and large aerostats.
• The venture will be 51 per cent owned by Reliance Defence, with Rafael holding the rest as per the current guidelines of the government.
• The new venture will be located at Dhirubhai Ambani Land Systems Park at Indore in Madhya Pradesh.
• Rafael has products like Python and Derby among air-to-air missiles, the Spyder range in air defence systems and the Barak family of surface-to-air missiles in the short and medium-range. Rafael has already provided large aerostat systems to the Indian Air Force for meeting its surveillance, reconnaissance, communication and intelligence needs.
• Reliance Defence has industrial licences for the full spectrum of military platforms and is the fastest emerging private sector enterprise in the development, manufacture and supply of defence aerospace, land and naval platforms and equipment.

ANSWER: New Plant species

Explanation:

• Researchers Soumya Murugan and Maya C. Nair have reported the discovery of a rare plant species from the Pottumala region of the Nelliampathy forests in the Western Ghats.
• They have spotted the new plant species with botanical name Sonerila nairii, which comes under the family of Melasto mataceae.
• The researchers have named the plant as Sonerila nairii as a tribute to eminent botanist P.K.K. Nair, who founded Thiruvananthapuram - based Environmental Resources Research Centre.
• The plant with pink coloured flowers is a highly endangered species. It was seen growing around 1,200 metres above sea level. Each plant carries just two flowers. The plant grows in soil found in the gaps of rocks.
• The plant species is enlisted in the critically endangered category of the International Union for Conservation of Nature.

ANSWER: 70%

Explanation:

• Despite the parliamentary committee batting for reduction in the size of pictorial warning (PW), sources in the Union Health Ministry have confirmed that the government will honour its commitment to display pictorial warnings on 85 per cent space of cigarette packets from April 1, 2016. The new norms suggest that 70 % of the packets will carry warnings and only 30 % will have ads.
• Today, we have only 40 per cent warning on one side, which means 160 per cent of the space is given to advertisement and promotion.
• The decision has allayed the fears of medical experts and anti-tobacco activists that the Committee on Subordinate Legislation report — which recommended 50 per cent PWs on both sides of cigarettes packets, and on one side of beedi and smokeless tobacco packets — would dilute their efforts to reduce tobacco consumption among the public.

ANSWER: Differently abled

Explanation:

• The ‘Inclusiveness and Accessibility Index’ helps the industries and corporates to participate in the Accessible India Campaign (AIC) by voluntarily evaluating their readiness for making the workplace accessible for Persons with Disabilities.
• Inclusiveness and Accessibility Index enables the organisations to reflect on their policies and organizational culture in aid and support of differently abled persons, employment of such persons and adaptations to meet the needs of such persons at work places. The Index based on which organisations can be ranked, encourages them to recruit more disabled persons and give them equal opportunities.
• The Index toolkit aims at assessing the current stage of inclusiveness and accessibility of persons with disabilities by an organisation. It can also act as a guide for taking progressive steps to increase support, inclusiveness and accessibility towards persons / employees with disabilities.
• The toolkit is based on research, and the best examples and experiences of organisations that have taken initiatives to increase accessibility of persons with disabilities and have benefited from such initiatives.
• The study will prioritize constructing the Accessibility Index for corporates to measure sensitivity towards persons with disabilities which will benchmark corporates operating in a given sector with their national peers.
• Extensive stakeholder consultations with NGOs and corporate sector will be held to ensure that the Index accommodates wide-ranging views of all stakeholders and is a robust document.
• At the second stage, the study will examine the role of state and NGOs in creating an enabling environment and executing the intent of regulations in promoting accessibility of disabled persons.

ANSWER: 2, 3

Explanation:

• Accessible India Campaign launched on 3rd December, 2015 is a nation-wide programme for achieving ‘Universal Accessibility’ for ‘Persons with Disabilities’ (PwDs) with a focus on three verticals: Built Environment; Public Transportation and Information & Communication Technologies.

ANSWER: Neither 1 nor 2

Explanation:

• The Reserve Bank of India has brought a new methodology of setting lending rate by commercial banks under the name Marginal Cost of Funds based Lending Rate (MCLR). It will modify the existing base rate system from April 2016 onwards.
• The present benchmark for lending rates is not responsive to rate reduction by RBI.
• With MCLR, the component is the marginal cost of fund which is more sensitive to the RBI policy rate.
• This has been done to improve transparency in methodology followed by banks to determine interest, and also ensure that interest rates are fair to both borrowers and banks.