The 2019 Codex
Questions 71 to 80 (Set A)
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?
The Secret Whisper
Official Key: (a) 1 only
Statement 1 is True: Headquartered in Beijing, the Asian Infrastructure Investment Bank (AIIB) began operations in 2016 and rapidly expanded to over 100 approved member nations worldwide.
Statement 2 is False: China is the largest shareholder by a wide margin (holding ~26.6% voting power and a de facto veto on major decisions). India is the second-largest shareholder (holding ~7.6% voting power).
Statement 3 is False: Despite having "Asian" in its title, membership is open to all members of the World Bank or ADB. It counts numerous non-regional members from Europe, North America, Africa, and South America (e.g., Germany, the UK, France, and Canada).
Route: [REALM 190: AIIB] & [REALM 210: India & Global Economic Groupings]The Capital Vault
The Consortium Pact
What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?
The Secret Whisper
Official Key: (d)
When a major corporate borrower defaults on a huge loan taken from multiple banks (consortium lending), individual lenders often quarrel over haircuts and legal battles, dragging resolution down for years.
Based on the recommendations of the Sunil Mehta Committee (Project Sashakt), Indian banks and financial institutions signed the Inter-Creditor Agreement (ICA). It established that if 66% of lenders by value agree to a resolution plan for a stressed account of ₹50 crore or more, it becomes legally binding on all lenders in the consortium, preventing holdouts and ensuring swift resolution.
Route: [REALM 149: Non-Performing Assets] & [REALM 54: Resolution of Stressed Bank Assets]The Chairmen of public sector banks are selected by the
The Secret Whisper
Official Key: (a) Banks Board Bureau
To insulate Public Sector Banks (PSBs) from political patronage and bureaucratic interference, the government adopted the recommendations of the P.J. Nayak Committee under the Indradhanush reform package in 2016. It set up an autonomous advisory body called the Banks Board Bureau (BBB) to interview, select, and recommend top leadership (Whole-Time Directors and Chairmen) for PSBs and public insurance firms. (Note: BBB has now evolved into the Financial Services Institutions Bureau, or FSIB).
Route: [REALM 144: P.J. Nayak Committee] & [REALM 132: Public Sector Banks]The Leadership Helm
The Pipeline Route
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.
The Secret Whisper
Official Key: (b) 2 and 3 only
Statement 1 is False: The PNGRB was constituted under an Act of 2006. Many regulatory bodies existed long before it, such as the Tariff Commission (1950s), SEBI (statutory in 1992), and TRAI (1997).
Statement 2 is True: Under Section 11 of the PNGRB Act, the board's mandate is to protect consumer interests and foster fair competition and open access in refining, processing, storage, transportation, and distribution of gas.
Statement 3 is True: Section 30 of the PNGRB Act establishes that any person aggrieved by an order of the Board can appeal directly to the Appellate Tribunal for Electricity (APTEL), rather than establishing an entirely separate tribunal.
Route: [REALM 127: Regulatory Governance] & [REALM 120: Gas Pipeline Networks]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.
The Secret Whisper
Official Key: (d) Neither 1 nor 2
Statement 1 is False: LTE is marketed globally as 4G (Fourth Generation), not 3G.
Statement 2 is False: LTE is primarily an IP-packet data standard, but it still supports voice (by dropping down to 2G/3G legacy networks via Circuit Switched Fallback). VoLTE is definitely not voice-only; it allows voice to be transmitted as digital data packets directly over the 4G LTE data pipe simultaneously with high-speed internet, eliminating the need to disconnect mobile data during phone calls.
Route: [REALM 494: Internet Architecture] & [REALM 496: Mobile Generations]The 4G Spectrum
The 26-Week Arc
Which of the following statements is/are correct regarding the Maternity Benefit (Amendment) Act, 2017?
1. Pregnant women are entitled for three months pre-delivery and three months post-delivery paid leave.
2. Enterprises with crèches must allow the mother minimum six crèche visits daily.
3. Women with two children get reduced entitlements.
The Secret Whisper
Official Key: (c) 3 only
Statement 1 is False: The 2017 Amendment expanded paid maternity leave from 12 weeks to 26 weeks. Out of this, not more than 8 weeks can precede the date of expected delivery (not 3 months/12 weeks).
Statement 2 is False: For establishments employing 50 or more employees, a crèche facility is mandatory, and the employer must allow four visits a day to the crèche by the woman (including rest intervals), not six.
Statement 3 is True: For a woman having two or more surviving children, the maternity benefit entitlement drops to 12 weeks (up to 6 weeks pre-delivery).
Route: [REALM 11: Women & Child Schemes] & [REALM 05: Women Welfare]Which one of the following is not a sub-index of the World Bank's Ease of Doing Business Index?
The Secret Whisper
Official Key: (a) Maintenance of law and order
The World Bank's (now discontinued) Doing Business report assessed business lifecycle regulations across 10 specific parameters:
- Starting a business
- Dealing with construction permits
- Getting electricity
- Registering property
- Getting credit
- Protecting minority investors
- Paying taxes
- Trading across borders
- Enforcing contracts
- Resolving insolvency
Maintenance of law and order was never an indicator (contract enforcement covers commercial disputes, not police law and order).
Route: [REALM 19: Ease of Doing Business] & [REALM 203: Ease of Doing Business]The Ten Gauges
The Circular Return
In India, 'extended producer responsibility' was introduced as an important feature in which of the following?
The Secret Whisper
Official Key: (c) The e-Waste (Management and Handling) Rules, 2011
Extended Producer Responsibility (EPR) is an environmental protection strategy making the manufacturer of a product responsible for the entire life-cycle of the product, especially for the take-back, recycling, and final safe disposal once the consumer discards it.
In India, EPR was formally introduced for the first time as a cornerstone statutory mechanism under the e-Waste (Management and Handling) Rules, 2011. (It was later adapted for plastic packaging under the Plastic Waste Management Rules, 2016).
Route: [REALM 146: E-Waste] & [REALM 140: Waste Management Foundations]The economic cost of food grains to the Food Corporation of India is Minimum Support Price and bonus (if any) paid to the farmers plus
The Secret Whisper
Official Key: (c) procurement incidentals and distribution cost
The Economic Cost of foodgrains incurred by the Food Corporation of India (FCI) is calculated using a standard formula composed of three pillars:
- MSP + Bonus: The actual price paid directly to farmers (Acquisition cost).
- Procurement Incidentals: Statutory mandi taxes, labor charges, bagging, handling, and initial storage transit.
- Distribution Cost: Freight charges, storage charges, operational costs, and transit/storage losses to get the grains to state depots for the PDS.
The difference between this total Economic Cost and the Central Issue Price (CIP) at which ration shops sell grains forms the Central Government's massive Food Subsidy bill.
Route: [REALM 132: Central Pool & Food Corporation of India] & [REALM 147: PDS Procurement–Storage–Distribution]The Grain Equation
The Invisible Trust
In the context of any country, which one of the following would be considered as part of its social capital?
The Secret Whisper
Official Key: (d) The level of mutual trust and harmony in the society
Economists and sociologists categorize capital into four distinct forms:
- Physical Capital: Machines, factories, buildings, tools (Option B).
- Human Capital: Education, skills, literacy, and health of individuals (Option A).
- Demographic Dividend: Working-age share of the population (Option C).
- Social Capital: The invisible glue holding communities together—shared values, civic networks, institutional trust, and mutual harmony that lower transaction costs and allow cooperative progress (Option D).