July 13-2024 Current Affairs MCQs

Explanation

• RBI allowed resident individuals to open Foreign Currency Account in International Financial Services Centres (IFSCs) at GIFT City in Gujarat under the Liberalised Remittance Scheme.

Statement 1 is correct

• The Liberalised Remittance Scheme is an RBI measure that allows Indian residents, including minors, to send up to USD250,000 per financial year (April to March) outside India.
• In case of the remitter being a minor, the LRS declaration form must be countersigned by the minor’s natural guardian.

Statement 2 is correct

• There are no restrictions on the frequency of remittances under LRS.
• However, the total amount through all sources in India during a financial year should be within the cumulative limit of USD 2,50,000.
• The remittances can be made in any freely convertible foreign currency

Statement 3 is incorrect

• Permissible capital account transactions
  • Opening a foreign currency account abroad with a bank outside India
  • Purchase of foreign property
  • Investments in overseas shares, securities, mutual funds, etc
  • Setting up wholly owned subsidiaries (WOS) or joint ventures (JV) abroad (subject to stipulated terms and conditions)
  • Extending INR loans to NRIs who are relatives as defined in the Companies Act
• Prohibited transactions
  • Remittance for any purpose specifically prohibited under Schedule-I (like purchase of lottery tickets/sweep stakes, proscribed magazines, etc.) or any item restricted under Schedule II of Foreign Exchange Management (Current Account Transactions) Rules, 2000.
  • To buy Foreign Currency Convertible Bonds issued by Indian Companies in overseas secondary market.
  • To trade in foreign exchange abroad.
  • To directly or indirectly to those individuals and entities identified as posing a significant risk of committing acts of terrorism as advised separately by the RBI to the banks.
  • Capital account remittances, directly or indirectly, to countries identified by the Financial Action Task Force (FATF) as “non-cooperative countries and territories” from time to time.

Answer: (b) 1 and 2 only; Difficulty Level: Hard

Explanation

• Recently, the second BIMSTEC Foreign Ministers’ Retreat was held in New Delhi.

Statement 1 is correct

• It has a total of seven member countries- five from South Asia, including Bangladesh, Bhutan, India, Nepal, and Sri Lanka, and two from Southeast Asia, including Myanmar and Thailand.
• It was founded as BIST-EC, in June 1997, with the adoption of the Bangkok Declaration, with Bangladesh, India, Sri Lanka and Thailand as members.
• It became BIMST-EC (Bangladesh, India, Myanmar, Sri Lanka and Thailand Economic Cooperation) with the entry of Myanmar in late 1997, And eventually, it was named in its current form, when Nepal and Bhutan became members in 2004.

Statement 2 is incorrect

• The permanent secretariat is in Dhaka, Bangladesh.

Statement 3 is correct

• In line with the organization’s development into a formal structure, the leaders of the member countries have divided the group’s work into seven segments, with India leading the security pillar.

Answer: (b) Only two; Difficulty Level: Hard

Explanation

Statement 1 is correct

• On its 43rd foundation day, NABARD announced the ‘Agri Fund for Start-Ups & Rural Enterprises’ (AgriSURE) fund.
• This initiative aims to establish a Rs 750 crore Category-II Alternative Investment Fund (AIF).
• It is structured to support approximately 85 start-ups with investment sizes of up to Rs 25 crore each.
• It will offer equity and debt support to explicitly target high-risk, high-impact activities in the agriculture value chain.

Statement 2 is correct

• Fund manager: NABVENTURES, a wholly-owned subsidiary of NABARD.

Statement 3 is incorrect

• Funding: NABARD and Agriculture Ministry 250 Cr each. The rest will come from other institutions.

Answer: (b) Only two; Difficulty Level: Hard

Explanation

Option (b) is correct

• It is located in Eastern Ladakh near the Indo-China border at an average altitude of 4,500 m above sea level and is part of the Changthang Wildlife Sanctuary.
• It is inhabited by Changpa nomadic herders, who rear sheep, pashmina goats, horses and yaks.
• Notable animals: Pallas’s cat, Tibetan sand fox, snow leopard, and black-necked crane.
• Sighting of the Tibetan sand fox, Pallas’s cat (nicknamed the world’s grumpiest cat) and the black-necked cranes popularised the valley.

Answer: (b) Changthang Wildlife Sanctuary; Difficulty Level: Easy

Explanation

Statement 1 is not correct

• Ionic Liquids (ILs) are salts that remain in a liquid state at relatively low temperatures and are known for their low toxicity and ability to dissolve a wide range of materials.
• Ionic liquids are a unique class of organic compounds that are entirely composed of ions.
• Unlike typical liquids, which consist of neutral molecules, ionic liquids are entirely made up of positive (cations) and negative (anions) ions.

Statement 2 is correct

• In the oil industry, it is used for pollutant removal, demulsification, and oil recovery.
• ILs are utilised in green energy storage and conversion devices like fuel cells, lithium-ion batteries, supercapacitors, and solar cells due to their eco-friendly nature and high ionic conductivity.
• They are used in drug formulation and delivery to address challenges like drug solubility, permeability, and formulation instability, offering potential solutions for enhancing drug delivery systems.

Answer: (b) 2 only; Difficulty Level: Medium