Daily Quiz 8 September 2023

Explanation:

• Option (1) is the correct answer: The Financial Stability Board (FSB) is an international body that monitors and makes recommendations about the global financial system. It was established in April 2009 after the G20 Summit in London as the successor to the Financial Stability Forum. The headquarters of the FSB is in Basel, Switzerland. The FSB includes all G20 major economies of the world. Whereas, the International Monetary Fund (IMF) was established in 1944 at the Bretton Woods Conference with the goal of reconstructing the international monetary system. Recently, in a joint report submitted by the International Monetary Fund (IMF) and the Financial Stability Board (FSB) to the Group of 20 nations, it recommended comprehensive regulation of cryptocurrencies instead of a blanket ban.

Explanation:

• Statement 1 is correct: Cryptocurrencies are not legal tender but tradable commodities/digital goods and do not fall within the regulatory framework of the RBI Act or the Banking Regulation Act, 1949 in India. Though crypto currencies have not been banned, their transactions in the country are still very low. Majority of crypto are purchased as a form of investment.
• Statement 2 is correct: Gains from trading in cryptocurrencies and related assets like non-fungible tokens (NFTs) will be taxed at a flat 30% and an additional 1 per cent TDS on the transfer of the said assets, according to the Union Budget of India 2022-23.
• Statement 3 is incorrect: The Government of India has brought crypto currencies and such other digital assets, trading, safe keeping and related financial services under the ambit of Prevention of Money Laundering Act (PMLA). It means that entities dealing with crypto assets must follow similar reporting standards and KYC norms as the other regulated entities like banks, securities intermediaries, payment system operators, etc.

Explanation:

While addressing the Global Fintech Festival 2023, the governor of RBI asked the FinTech firms to form a Self-Regulatory Organisation (SRO) within a year for better regulation of the sector.

• Statement 1 is incorrect: Fintech, short for “financial technology,” refers to the innovative use of technology to deliver a wide range of financial services and products. With more than 9,000 fintechs, India is home to the third-highest number of fintechs globally after USA and China. However, India still remains an untapped market due to lower penetration of financial services. These untapped opportunities, along with a favourable ecosystem create large growth potential for FinTechs in India.
• Statement 2 is correct: Fintech market in India holds nearly 14 per cent share of Indian start-up funding. Indian FinTech industry’s market size is $ 50 Bn in 2021 and is estimated at ~$ 150 Bn by 2025. According to McKinsey India, fintech sector is poised to generate $400 billion in value creation by 2030, indicating a 4X increase from its current level in 2022.

Explanation:

Statement 1 is correct: The Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES) is an independent intergovernmental body. Recently, it has released its new publication – the “Assessment Report on Invasive Alien Species and their Control’’. According to the report, there are 37,000 alien species, including plants and animals, that have been introduced by many human activities to regions and biomes around the world.

Of the 37,000 introduced alien species, more than 3,500 out pose major global threats to nature, economy, food security and human health.

Statement 2 is incorrect: The Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES) was established in Panama City in April 2012 by 94 Governments. It was result of a consultative process initiated in response to the Millennium Ecosystem Assessment (MA), the first state of the art scientific appraisal of the conditions and tends in the world’s Ecosystems and the services they provide, which was conducted from 2001-2005. It aims to strengthen the science-policy interface for biodiversity and ecosystem services for the conservation and sustainable use of biodiversity, long-term human well-being and sustainable development.

Statement 3 is correct: The Intergovernmental Platform on Biodiversity and Ecosystem Services (IPBES) is not a United Nations body. However, the United Nations Environment Programme (UNEP) provides secretariat services to IPBES.

Explanation:

• Option (4) is correct: The Kunming-Montreal Global Biodiversity Framework was adopted by the 15th Conference of Parties (COP15) to the Convention on Biological Diversity (CBD) on 19 December 2022. The United Nations Biodiversity Conference (COP15) ended in Montreal, Canada, on 19 December 2022 with a landmark agreement to guide global action on nature through to 2030. Chaired by China and hosted by Canada. CBD is a legally binding treaty to conserve biodiversity that has been in force since 1993 and has been ratified by 196 nations. It sets out guidelines for countries to protect biodiversity, ensure sustainable use, and promote fair and equitable benefit sharing.