2019 Archives

171. With reference to communication technologies, what is/are the differen

With reference to communication technologies, what is/are the difference/differences between LTE (Long-Term Evolution) and VoLTE (Voice over Long-Term Evolution)?

1. LTE is commonly marketed as 3G and VoLTE is commonly marketed as advanced 3G.
2. LTE is data-only technology and VoLTE is voice-only technology.

Select the correct answer using the code given below.

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option4″]

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UPSC IAS – 2019

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The correct answer is D, as neither statement 1 nor statement 2 is correct.

Statement 1 is incorrect because LTE (Long-Term Evolution) is typically marketed as 4G technology, offering significant speed improvements over 3G. VoLTE (Voice over Long-Term Evolution) is a service that allows voice calls to be made over the 4G LTE data network, rather than the older circuit-switched networks used by 2G and 3G.
Statement 2 is incorrect because LTE is a data technology designed for high-speed data transfer, and it can also carry voice traffic (using VoLTE or earlier technologies like CSFB). VoLTE is a specific implementation to carry voice traffic as data packets over the LTE network; it is not a voice-only technology, but rather a method for voice communication *over* a data network. LTE itself provides data connectivity, and voice can be provisioned over it.

LTE was developed as an upgrade path from GSM/UMTS technologies, providing increased network capacity and speed. VoLTE leverages the all-IP nature of the LTE network to deliver voice services with potentially higher quality (HD Voice) and faster call setup times, while simultaneously allowing users to access data services during a call. Without VoLTE, voice calls on an LTE network typically require the phone to drop back to a 2G or 3G network (Circuit-Switched Fallback – CSFB) for the duration of the call.

172. Consider the following statements : 1. Petroleum and Natural Gas Reg

Consider the following statements :

1. Petroleum and Natural Gas Regulatory Board (PNGRB) is the first regulatory body set up by the Government of India.
2. One of the tasks of PNGRB is to ensure competitive markets for gas.
3. Appeals against the decisions of PNGRB go before the Appellate Tribunals for Electricity.

Which of the statements given above are correct?

[amp_mcq option1=”1 and 2 only” option2=”2 and 3 only” option3=”1 and 3 only” option4=”1, 2 and 3″ correct=”option2″]

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Statement 1: The Petroleum and Natural Gas Regulatory Board (PNGRB) was established under the PNGRB Act, 2006. It was not the first regulatory body in India. Several regulatory bodies were established much earlier, such as SEBI (1988/1992), TRAI (1997), and CERC (1998). Thus, Statement 1 is incorrect.
Statement 2: The PNGRB Act, 2006, lists the functions of the Board, which include protecting the interests of consumers and entities, ensuring the adequate availability of petroleum products, fostering fair trade, and promoting competitive markets. Section 11(h) explicitly states one of the functions is “promoting competitive markets in petroleum, petroleum products and natural gas.” Thus, Statement 2 is correct.
Statement 3: The PNGRB Act, 2006, provides for appeals against the orders of the PNGRB to be filed before the Appellate Tribunal for Electricity (APTEL). APTEL was established under the Electricity Act, 2003, to hear appeals against the orders of regulatory commissions, and its jurisdiction was extended to cover appeals against PNGRB decisions as per the PNGRB Act. Thus, Statement 3 is correct.
Based on the analysis, Statements 2 and 3 are correct.

The PNGRB is a regulatory body established in 2006 to promote competitive markets in the petroleum and natural gas sector, and appeals against its decisions go to the Appellate Tribunal for Electricity (APTEL). It is not the first regulatory body in India.

The establishment of PNGRB aimed to regulate the midstream and downstream activities in the petroleum and natural gas sector, which were previously largely unregulated or governed by administrative orders. Its functions include regulating the refining, processing, storage, transportation, distribution, marketing and sale of petroleum, petroleum products, and natural gas.

173. The Chairmen of public sector banks are selected by the

The Chairmen of public sector banks are selected by the

[amp_mcq option1=”Banks Board Bureau” option2=”Reserve Bank of India” option3=”Union Ministry of Finance” option4=”Management of concerned bank” correct=”option1″]

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As part of banking reforms aimed at improving governance in Public Sector Banks (PSBs), the Government of India established the Banks Board Bureau (BBB) in 2016. One of the primary functions of BBB was to recommend persons for appointment as whole-time directors and non-executive chairmen in PSBs and public sector financial institutions. While the final appointment order is issued by the Ministry of Finance (on the recommendation of the Appointments Committee of the Cabinet), the selection process and recommendation for these top posts in PSBs are made by the dedicated body, BBB (which was later replaced by FSIB). Therefore, the selection is done by the Banks Board Bureau (or its successor body).

The selection of Chairmen (and other whole-time directors) of Public Sector Banks is done by the Banks Board Bureau (or its successor, FSIB).

The Reserve Bank of India regulates banks but does not appoint their chairmen. The management of the concerned bank does not select its own top leadership. While the Union Ministry of Finance is the administrative ministry and issues the final appointment order, the actual selection process for recommending candidates is undertaken by the specialized body (BBB/FSIB) to professionalize the appointments.

174. What was the purpose of Inter-Creditor Agreement signed by Indian bank

What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

[amp_mcq option1=”To lessen the Government of India’s perennial burden of fiscal deficit and current account deficit” option2=”To support the infrastructure projects of Central and State Governments” option3=”To act as independent regulator in case of applications for loans of ₹ 50 crore or more” option4=”To aim at faster resolution of stressed assets of ₹ 50 crore or more which are under consortium lending” correct=”option4″]

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The Inter-Creditor Agreement (ICA) was signed by major Indian banks and financial institutions as part of the ‘Sashakt’ scheme for resolving stressed assets, particularly large value Non-Performing Assets (NPAs) under consortium lending (where multiple banks have lent to the same borrower). The ICA aims to facilitate faster decision-making among lenders regarding resolution strategies (like restructuring, liquidation, change in ownership, etc.) for stressed accounts involving multiple creditors, especially those with total exposure of ₹ 50 crore or more. This helps avoid delays in resolving bad loans which arise when multiple banks with different stakes and priorities are involved.

The Inter-Creditor Agreement is a mechanism among lenders to speed up the resolution of stressed assets under consortium lending.

The ICA streamlines the process by allowing a decision agreed upon by a certain majority of creditors (by value of debt) to be binding on all other creditors who are part of the agreement. This prevents minority creditors from blocking resolution efforts and aims to maximize recovery value from stressed assets, complementing existing frameworks like the Insolvency and Bankruptcy Code (IBC).

175. With reference to Asian Infrastructure Investment Bank (AIIB), conside

With reference to Asian Infrastructure Investment Bank (AIIB), consider the following statements:

1. AIIB has more than 80 member nations.
2. India is the largest shareholder in AIIB.
3. AIIB does not have any members from outside Asia.

Which of the statements given above is/are correct?

[amp_mcq option1=”1 only” option2=”2 and 3 only” option3=”1 and 3 only” option4=”1, 2 and 3″ correct=”option1″]

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UPSC IAS – 2019

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Statement 1: The Asian Infrastructure Investment Bank (AIIB) has expanded its membership significantly since its inception in 2016. As of late 2023/early 2024, AIIB has over 100 approved members from across the globe. The statement “more than 80 member nations” is correct as it falls within the actual number of members.
Statement 2: China is the largest shareholder in the AIIB, holding the largest voting share. India is the second-largest shareholder. Thus, Statement 2 is incorrect.
Statement 3: AIIB is not exclusively limited to Asian members. It has actively sought and included members from outside Asia, including countries from Europe (e.g., Germany, France, UK), Africa (e.g., South Africa, Egypt), Oceania (e.g., Australia, New Zealand), and Latin America (e.g., Brazil). Thus, Statement 3 is incorrect.
Based on the analysis, only Statement 1 is correct.

AIIB is a multilateral development bank with a broad global membership extending beyond Asia, where China is the largest shareholder and India is the second largest.

AIIB’s mission is to finance infrastructure projects in Asia and beyond. It was proposed by China and is seen as a complementary institution to existing multilateral development banks like the World Bank and the Asian Development Bank. Its growing membership from various continents reflects its ambition to be a global infrastructure bank.

176. With reference to India’s Five-Year Plans, which of the following stat

With reference to India’s Five-Year Plans, which of the following statements is/are correct?

1. From the Second Five-Year Plan, there was a determined thrust towards substitution of basic and capital good industries.
2. The Fourth Five-Year Plan adopted the objective of correcting the earlier trend of increased concentration of wealth and economic power.
3. In the Fifth Five-Year Plan, for the first time, the financial sector was included as an integral part of the Plan.

Select the correct answer using the code given below.

[amp_mcq option1=”1 and 2 only” option2=”2 only” option3=”3 only” option4=”1, 2 and 3″ correct=”option1″]

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UPSC IAS – 2019

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Statement 1: The Second Five-Year Plan (1956-61), based on the Mahalanobis model, laid a strong emphasis on rapid industrialization with a focus on heavy and basic industries and capital goods. This was a deliberate strategy to reduce India’s dependence on imports for these critical items and build a self-reliant industrial base, which is essentially import substitution. Thus, Statement 1 is correct.
Statement 2: The Fourth Five-Year Plan (1969-74) had objectives that included ‘Growth with Stability’ and ‘Progressive achievement of Self-Reliance’. It explicitly aimed at promoting social justice and equality, including reducing the concentration of wealth and economic power, and achieving a more equitable distribution of income. Policies like the nationalization of major banks (1969) and anti-monopoly legislation were aligned with this objective. Thus, Statement 2 is correct.
Statement 3: While the Five-Year Plans always involved planning for resource mobilization, including through the financial system, the statement that the financial sector was included as an integral part of the plan “for the first time” in the Fifth Five-Year Plan (1974-79) is not entirely accurate. Planning for credit allocation to priority sectors and the role of public sector banks in resource mobilization were features of plans from the Second Plan onwards. The significant structural integration and reform of the financial sector as a distinct policy area within the Five-Year Plans became more prominent in the post-reform era, especially from the Eighth Plan onwards. The Fifth Plan focused primarily on poverty eradication and self-reliance amidst economic challenges. Therefore, Statement 3 is incorrect.

The Second and Fourth Five-Year Plans focused on heavy industry/import substitution and reducing economic concentration respectively. The claim about the financial sector’s integration in the Fifth Plan “for the first time” is inaccurate compared to later plans.

India’s Five-Year Plans were the backbone of its economic planning from 1951 to 2014. Each plan had specific objectives reflecting the priorities of the time. The focus shifted over different plans, from agriculture and community development (First) to heavy industry (Second), self-reliance (Third onwards), poverty eradication (Fifth), liberalization and economic reforms (Eighth onwards), etc.

177. In India, which of the following review the independent regulators in

In India, which of the following review the independent regulators in sectors like telecommunications, insurance, electricity, etc.?
1. Ad Hoc Committees set up by the Parliament
2. Parliamentary Department Related Standing Committees
3. Finance Commission
4. Financial Sector Legislative Reforms Commission
5. NITI Aayog
Select the correct answer using the code given below.

[amp_mcq option1=”1 and 2″ option2=”1, 3 and 4″ option3=”3, 4 and 5″ option4=”2 and 5″ correct=”option1″]

This question was previously asked in

UPSC IAS – 2019

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In India, independent regulatory bodies in sectors like telecommunications (TRAI), insurance (IRDAI), electricity (CERC/SERCs), etc., are subject to review and oversight by the Parliament.
1. Ad Hoc Committees set up by the Parliament: Parliament can constitute specific ad hoc committees to examine particular issues related to a sector or the functioning of a regulator.
2. Parliamentary Department Related Standing Committees: These committees are permanent committees of Parliament that oversee the functioning of various ministries and departments. Regulators often fall under the purview of specific ministries (e.g., TRAI under Ministry of Communications, IRDAI under Ministry of Finance, CERC/SERCs under Ministry of Power). These Standing Committees review the policy implications, performance, and finances of these regulators as part of their oversight function.
3. Finance Commission: Primarily deals with the distribution of financial resources between the Union and states and other fiscal matters. It does not review the performance of sector-specific independent regulators.
4. Financial Sector Legislative Reforms Commission (FSLRC): This was a specific commission that reviewed the legislative framework of the financial sector and proposed reforms. It was not a body for regular review of individual regulators.
5. NITI Aayog: A government think tank focused on policy and planning. It does not have a mandate for parliamentary oversight or review of independent regulators’ operational aspects.
Therefore, the independent regulators are reviewed by Parliamentary Committees, both standing and sometimes ad hoc.

Independent regulators are primarily reviewed by Parliamentary Committees in India, including Department Related Standing Committees and specific ad hoc committees.

Parliamentary oversight is a crucial mechanism for ensuring accountability of regulatory bodies. While these regulators are independent in their decision-making within their mandated domain, their actions, policies, and performance are subject to scrutiny by the legislative branch of the government.

178. Consider the following statements: 1. As per law, the Compensatory A

Consider the following statements:

1. As per law, the Compensatory Afforestation Fund Management and Planning Authority exists at both National and State levels.
2. People’s participation is mandatory in the compensatory afforestation programmes carried out under the Compensatory Afforestation Fund Act, 2016.

Which of the statements given above is/are correct?

[amp_mcq option1=”1 only” option2=”2 only” option3=”Both 1 and 2″ option4=”Neither 1 nor 2″ correct=”option1″]

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Statement 1: The Compensatory Afforestation Fund Act, 2016, provides for the establishment of a Compensatory Afforestation Fund at both the national level (National Fund) and the state level (State Fund). It also mandates the constitution of a National Compensatory Afforestation Fund Management and Planning Authority (CAMPA) and State CAMPAs to manage these funds and carry out compensatory afforestation and other related activities. Thus, Statement 1 is correct.
Statement 2: While the Act and related rules encourage people’s participation, especially involving Gram Sabhas in planning and monitoring compensatory afforestation activities (Section 4(2)(v) of the Act mentions inclusion of details relating to participation of local people, NGOs, etc., in the annual plan), it does not make people’s participation strictly mandatory for all compensatory afforestation programmes carried out under the Act. The term “mandatory” implies a strict legal requirement for every programme, which is not explicitly stipulated in the Act. Thus, Statement 2 is incorrect.

The Compensatory Afforestation Fund Act, 2016 establishes CAMPA authorities and funds at both national and state levels, but people’s participation in programmes is encouraged rather than being strictly mandatory.

Compensatory afforestation is required under forest laws when forest land is diverted for non-forest purposes. The funds collected for this purpose were often underutilized or mismanaged, leading to the enactment of the 2016 Act to create a proper framework for the management and utilization of these funds. The Act aims to promote afforestation and regeneration activities to compensate for the loss of forest cover.

179. Which of the following is issued by registered foreign portfolio inves

Which of the following is issued by registered foreign portfolio investors to overseas investors who want to be part of the Indian stock market without registering themselves directly?

[amp_mcq option1=”Certificate of Deposit” option2=”Commercial Paper” option3=”Promissory Note” option4=”Participatory Note” correct=”option4″]

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Participatory Notes (P-Notes) are financial instruments used by registered Foreign Portfolio Investors (FPIs) to invest in Indian securities without directly registering themselves with the Securities and Exchange Board of India (SEBI). These notes are issued by the FPIs to overseas investors, who essentially gain exposure to the Indian stock market performance through these instruments. This allows overseas investors who may find the direct registration process cumbersome to participate in the Indian market.

Participatory Notes (P-Notes) allow unregistered overseas investors to indirectly invest in Indian securities through registered FPIs.

Certificate of Deposit (CD) is a short-term debt instrument issued by banks. Commercial Paper (CP) is a short-term unsecured promissory note issued by companies. A Promissory Note is a general term for a written promise to pay a specific amount. None of these instruments serve the specific function of enabling indirect access to the Indian stock market for overseas investors via registered intermediaries in the way P-Notes do.

180. Which one of the following suggested that the Governor should be an em

Which one of the following suggested that the Governor should be an eminent person from outside the State and should be a detached figure without intense political links or should not have taken part in politics in the recent past?

[amp_mcq option1=”First Administrative Reforms Commission (1966)” option2=”Rajamannar Committee (1969)” option3=”Sarkaria Commission (1983)” option4=”National Commission to Review the Working of the Constitution (2000)” correct=”option3″]

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The recommendation that the Governor should be an eminent person from outside the State, a detached figure without intense political links, and should not have taken part in politics in the recent past is a key recommendation of the Sarkaria Commission on Centre-State Relations (1983). The Commission was established to examine the relationship and balance of power between the central and state governments in India and suggest changes within the framework of the Constitution. Its report contained several recommendations regarding the appointment, role, and removal of the Governor aimed at ensuring the impartiality and effectiveness of the office.

The Sarkaria Commission (1983) made specific recommendations regarding the criteria for selecting state governors to ensure impartiality and avoid political bias.

The First Administrative Reforms Commission (1966) also touched upon Centre-State relations but its recommendations are not as detailed or specific on the Governor’s role as Sarkaria Commission. The Rajamannar Committee (1969), appointed by the Tamil Nadu government, strongly advocated for state autonomy and suggested various measures, including the abolition of the Governor’s post or appointment in consultation with the state government, but the specific description in the question matches Sarkaria Commission’s detailed criteria for the person selected. The National Commission to Review the Working of the Constitution (2000) also reviewed the Governor’s role and endorsed many of the Sarkaria Commission’s views.