Daily Current Affairs MCQ / UPSC / IAS / 06-07-19

Table of Contents

MCQ 1

The Cabinet has approved the introduction of Surrogacy (Regulation) Bill, 2019 that aims to prohibit surrogacy in India.
The 228th report of the Law Commission of India has recommended prohibiting surrogacy

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(B) Only 2
(C) Both
(D) None

The Cabinet has approved the introduction of Surrogacy (Regulation) Bill, 2019 that aims to prohibit commercial surrogacy in India.
Key features of the bill:
The Bill proposes to regulate surrogacy in India by establishing a National Surrogacy Board at the central level and state surrogacy boards and appropriate authorities in the state and Union Territories.
The purpose of the Bill is to ensure effective regulation of surrogacy, prohibit commercial surrogacy, and allow ethical surrogacy.
While commercial surrogacy will be prohibited, including sale and purchase of human embryos and gametes, ethical surrogacy for needy couples will be allowed on fulfilment of stipulated conditions.
It will also prevent exploitation of surrogate mothers and children born through surrogacy.
There will not be any financial implications, except for the meetings of the National and State Surrogacy Boards and appropriate authorities, which will be met out of the administrative budgets of respective departments.
India has emerged as a surrogacy hub for couples from other countries and there have been reports concerning unethical practices, exploitation of surrogate mothers, abandonment of children born out of surrogacy, and rackets involving intermediaries importing human embryos and gametes.
The 228th report of the Law Commission of India has recommended prohibiting commercial surrogacy and allowing altruistic surrogacy by enacting suitable legislation.
What is an altruistic surrogacy arrangement?
The Bill includes contracting a ‘close relative’ as a surrogate by a heterosexual married couple who have been childless for five years of their marriage.

MCQ 2

CICs are non-banking financial companies with asset size of ₹500 crore and above which carry on the business of acquisition of shares and securities, subject to certain conditions.
They are not regulated by RBI

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The Reserve Bank has constituted a working group that will review the regulatory and supervisory framework for core investment companies.
The six-member working group is to be headed by Tapan Ray, nonexecutive chairman, Central Bank of India and former secretary, Ministry of Corporate Affairs.
The terms of reference of the working group include examination of the current regulatory framework for CICs in terms of adequacy, efficacy and effectiveness of every component thereof and suggest changes therein.
In August 2010, RBI had introduced a separate framework for the regulation of systemically important core investment companies (CICs), recognizing the difference in the business model of a holding company relative to other non-banking financial companies.
What are Core Investment Companies (CICs)?
CICs are non-banking financial companies with asset size of ₹100 crore and above which carry on the business of acquisition of shares and securities, subject to certain conditions.
CICs, which are allowed to accept public funds, hold not less than 90% of their net assets in the form of investment in equity shares, preference shares, bonds, debentures, debt or loans in group companies.
Investments of CIC in the equity shares (including instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue) in group companies constitutes not less than 60% of its net assets as mentioned in clause.
Exemption: CICs having asset size of below Rs 100 crore are exempted from registration and regulation from the RBI, except if they wish to make overseas investments in the financial sector.

MCQ 3

A breach of privilege is mentioned in the constitution
The Speaker(LS) only can decide on the privilege motion himself or herself or refer it to the privileges committee of Parliament

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(B) Only 2
(C) Both
(D) None

What is parliamentary privilege? Parliamentary privilege refers to rights and immunities enjoyed by Parliament as an institution and MPs in their individual capacity, without which they cannot discharge their functions as entrusted upon them by the Constitution.
Are these parliamentary privileges defined under law? According to the Constitution, the powers, privileges and immunities of Parliament and MP’s are to be defined by Parliament. No law has so far been enacted in this respect. In the absence of any such law, it continues to be governed by British Parliamentary conventions.
Trinamool MP Mahua Moitra has moved a breach of privilege motion in the Lok Sabha against a private Hindi news channel and its Editor for reporting that her first speech in Parliament was plagiarised.
Parliamentary privileges are certain rights and immunities enjoyed by members of Parliament, individually and collectively, so that they can “effectively discharge their functions”. When any of these rights and immunities are disregarded, the offence is called a breach of privilege and is punishable under law of Parliament.
A notice is moved in the form of a motion by any member of either House against those being held guilty of breach of privilege. Each House also claims the right to punish as contempt actions which, while not breach of any specific privilege, are offences against its authority and dignity.
Rule No 222 in Chapter 20 of the Lok Sabha Rule Book and correspondingly Rule 187 in Chapter 16 of the Rajya Sabha rulebook governs privilege.
It says that a member may, with the consent of the Speaker or the Chairperson, raise a question involving a breach of privilege either of a member or of the House or of a committee thereof. The rules however mandate that any notice should be relating to an incident of recent occurrence and should need the intervention of the House. Notices have to be given before 10 am to the Speaker or the Chairperson.
The Speaker/RS chairperson is the first level of scrutiny of a privilege motion.
The Speaker/Chair can decide on the privilege motion himself or herself or refer it to the privileges committee of Parliament.
If the Speaker/Chair gives consent under Rule 222, the member concerned is given an opportunity to make a short statement.
In the Lok Sabha, the Speaker nominates a committee of privileges consisting of 15 members as per respective party strengths. A report is then presented to the House for its consideration. The Speaker may permit a half-hour debate while considering the report. The Speaker may then pass final orders or direct that the report be tabled before the House.
A resolution may then be moved relating to the breach of privilege that has to be unanimously passed. In the Rajya Sabha, the deputy chairperson heads the committee of privileges, that consists of 10 members.

MCQ 4
1. Proposed Central Welfare Database of citizens will be used for Adhaar related payments

Private sector will not be allowed to access it.

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The Economic Survey 2018-19, tabled in Parliament on Thursday, pitched for setting up a central welfare database of citizens — by merging different data maintained by separate Ministries and departments — which can be tapped for enhancing ease of living for citizens, particularly the poor.
While the Survey pointed out that governments can create data as a public good within the legal framework of data privacy, it added that care must also be taken not to impose the “elite’s preference of privacy on the poor, who care for a better quality of living the most.
” It also recommended granting access to select database to private sector for a fee, given that “stringent technological mechanisms exist to safeguard data privacy.” The Survey noted that there had been some discussions around the “linking” of datasets, primarily through the seeding of an Aadhaar number across databases such as PAN database, bank accounts and mobile numbers. However, it clarified that the linking is “one-way.” For example, banks can use the tokenised Aadhaar number to combine duplicate records and weed out benami accounts, but this does not mean that the UIDAI or government can read the bank account information or other data related to the individual. “While private sector does a good job of harnessing data where it is profitable, government intervention is needed in social sectors of the country where private investment in data remains inadequate,” the Survey said. These recommendations come at a time when India is working on finalising its personal data protection policy.
The Survey highlighted that the governments already held a rich repository of administrative, survey, institutional and transactions data about citizens, but these data were scattered across numerous government bodies. Merging these distinct datasets would generate multiple benefits with the applications being limitless.
The government could utilize the information embedded in these distinct datasets to enhance ease of living for citizens, enable truly evidence-based policy, improve targeting in welfare schemes, uncover unmet needs, integrate fragmented markets, bring greater accountability in public services and generate greater citizen participation in governance, etc.
The datasets talked about inclusion of administrative data such as birth and death records, pensions, tax records, marriage records; survey data such as census data, national sample survey data; transactions data such as e-national agriculture market data, UPI data, institutional data and public hospital data on patients

MCQ 5

ECGC is is managed by an Asset Management Company comprising representatives of the industries only.
It is a premier export credit agency of the Government of India to provide Export Credit Insurance Services to facilitate exports from the country.
It functions under the administrative control of Ministry of finance

Choose correct
(A) 1 & 2
(B) Only 2
(C) All
(D) None

The ECGC Limited (Formerly Export Credit Guarantee Corporation of India Ltd) is a company wholly owned by the Government of India based in Mumbai, Maharashtra.
It provides export credit insurance support to Indian exporters and is controlled by the Ministry of Commerce. Government of India had initially set up Export Risks Insurance Corporation (ERIC) in July 1957. It was transformed into Export Credit and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee Corporation of India in 1983.
ECGC Ltd, was established in July, 1957 to strengthen the export promotion by covering the risk of exporting on credit.
It functions under the administrative control of the Ministry of Commerce & Industry, Department of Commerce, Government of India.
It is managed by an Asset Management Company comprising representatives of the Government, Reserve Bank of India, banking, insurance and exporting community.
Name of the company has been changed from EXPORT CREDIT GUARANTEE CORPORATION OF INDIA LIMITED to ECGC Limited with effect from 8 August 2014 as per certificate issued by Deputy Registrar of Companies, Registrar of Companies, Mumbai.
ECGC Ltd is the seventh largest credit insurer of the world in terms of coverage of national exports. The present paid-up capital of the company is Rs. 1200 crores and authorized capital Rs.5000 crores

MCQ 6

A turnover ratio represents the amount of assets or liabilities that a company replaces in relation to its sales.
In most cases, a low asset turnover ratio is considered good, since it implies that receivables are collected quickly, fixed assets are heavily utilized

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(C) Both
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According to the World Bank, India’s turnover ratio at 58 in 2018 was a 43 per cent drop from 101 recorded in 2004.
What is it? A turnover ratio represents the amount of assets or liabilities that a company replaces in relation to its sales. The concept is useful for determining the efficiency with which a business utilizes its assets.
In most cases, a high asset turnover ratio is considered good, since it implies that receivables are collected quickly, fixed assets are heavily utilized, and little excess inventory is kept on hand. This implies a minimal need for invested funds, and therefore a high return on investment.
Conversely, a low liability turnover ratio (usually in relation to accounts payable) is considered good, since it implies that a company is taking the longest possible amount of time in which to pay its suppliers, and so has use of its cash for a longer period of time.

MCQ 7 “Virtuous Cycle”, a term used in Eco. Survey 2018-19 implies

A expansionary business cycle in economy
Where less expenditure and high tax collection is there
A Cycle of savings, investment and exports catalyzed and supported by a favorable demographic phase
None

Sustained real GDP growth rate of 8% needed for a $5 trillion economy by 2024-25.
Need of the hour: “Virtuous Cycle” of savings, investment and exports catalyzed and supported by a favorable demographic phase required for sustainable growth.
Private investment– key driver for demand, capacity, labor productivity, new technology, creative destruction and job creation.
Key ingredients for a self-sustaining virtuous cycle:
Presenting data as a public good.
Emphasizing legal reforms.
Ensuring policy consistency.
Encouraging behavior change using principles of behavioral economics.
Nourishing MSMEs to create more jobs and become more productive.
Reducing the cost of capital.
Rationalizing the risk-return trade-off for investments.

MCQ 8
What is a Grandfather clause in economy ?

When Wise policy is needed with start ups to help them grow
A provision in which an old rule continues to apply to some existing situations while a new rule will apply to all future cases.
Provision related to policies regarding companies older than 100 years old.
None

A grandfather clause (or grandfather policy or grandfathering) is a provision in which an old rule continues to apply to some existing situations while a new rule will apply to all future cases. Those exempt from the new rule are said to have grandfather rights or acquired rights, or to have been grandfathered in. Frequently, the exemption is limited; it may extend for a set time, or it may be lost under certain circumstances. For example, a “grandfathered power plant” might be exempt from new, more restrictive pollution laws, but the exception may be revoked and the new rules would apply if the plant were expanded. Often, such a provision is used as a compromise or out of practicality, to allow new rules to be enacted without upsetting a well-established logistical or political situation. This extends the idea of a rule not being retroactively applied.

MCQ 9
What is a sunset clause in economy ?

A provision of closing industries which are no more profitable
A provision in a contract of sale that sets a date after which the agreement is no longer in effect
Motions taken in the last hour during budget session
None

Nourishing Dwarfs to become Giants: Reorienting policies for MSME Growth:
Focus on enabling MSMEs to grow for achieving greater profits, job creation and enhanced productivity.
Concerns: Dwarfs (firms with less than 100 workers) despite being more than 10 years old, account for more than 50% of all organized firms in manufacturing by number. Contribution of dwarfs to employment is only 14%and to productivity is a mere 8%. Large firms (more than 100 employees) account for 75% employment and close to90% of productivity despite accounting for about 15% by number.

What needs to be done?

Unshackling MSMEs and enabling them to grow by way of:
A sunset clause of less than 10 years, with necessary grand-fathering, for all size-based incentives. • Deregulating labor law restrictions to create significantly more jobs, as evident from Rajasthan.
Re-calibrating Priority Sector Lending (PSL) guidelines for direct credit flow to young firms in high employment elastic sectors.
Focus on service sectors such as tourism, with high spillover effects on other sectors such as hotel & catering, transport, real estate, entertainment etc., for job creation.

MCQ 10

Delays in contract enforcement and disposal resolution are arguably now the single biggest hurdle to the ease of doing business and higher GDP growth in India
Around 87.5 per cent (the maximum share in judiciary) of pending cases are in the Supreme court

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As of April 2018, there are over three crore cases pending across the Supreme Court, the High Courts, and the subordinate courts (including district courts).
Of these, the subordinate courts account for over 86% pendency of cases, followed by 13.8% pendency before the 24 High Courts. The remaining 0.2% of cases are pending with the Supreme Court.
Between 2006 and 2018 (up to April), there has been an 8.6% rise in the pendency of cases across all courts. Pendency before Supreme Court increased by 36%, High Courts by 17%, and subordinate courts by 7%.
In 2016, compared to 2006, number of cases disposed of increased approximately from 57,000 to 76,000 in Supreme Court; from 14.4 lakh cases to 16 lakh cases in High Courts and from 1.6 crore cases to 1.9 crore cases in subordinate courts. Despite an increase in disposal of cases in most years, the pendency of cases has increased due to the number of new cases outpacing the number of cases disposed of.
The disposal rate has stayed between 55% to 59% in the Supreme Court, at 28% in the High Courts, and at 40% in the subordinate courts.
More criminal cases are filed in subordinate courts than in High Courts and Supreme Court. For example, 81% of all cases pending in subordinate courts (2016) were criminal cases, compared to 19% civil cases. On the other hand, in High Courts, a higher number of civil cases were filed (60%) compared to criminal cases (40%).