. A Non-Performing Asset of a non-agricultural loan book shall be a loan or advance where___: [A]Interest and/or instalment of principal remain overdue for 90 days in respect of term loan [B]The debtor is declared insolvent [C]Payment of interest/instalment of principal has been irregular [D]All of the above Ans:- Interest and/or instalment of principal remain overdue for 90 days in respect of term loan Explanation:- NPA of a non-agricultural loan book is a loan/advance wherein interest/instalment of principal remains overdue for 90 days. These NPAs causes capital formation for banks thereby reducing the lending capacity of banks undermining growth. In India recently there has been an increase in NPAs, especially of public sector banks. 2. Which one of the following is the new sub-category of the commercial real estate sector (CRE) as per the latest RBI directive? [A]Residential projects [B]Commercial projects [C]Industrial projects [D]SEZ projects Ans:- Residential projects Explanation:- The new RBI directive which follows the monetary policy statement of 2013-14 has carved out a sub-sector of ‘Commercial real estate sector (CRE)-residential housing’ to boost investments in residential housing sector by altering the risk weight, which is currently 0.75% reduced from the previous 1%. 3. Though ULIPs (Unit Linked Insurance Plan) are considered to be a better investment vehicle it has failed to capture the imagination of the retail investors in India because of which of the following reasons? [A]Regulatory jurisdictional fight between SEBI and IRDA [B]They don’t offer better tax benefits [C]They offer lesser returns compared to traditional insurance policies [D]All of the above Ans:- Regulatory jurisdictional fight between SEBI and IRDA Explanation:- There have been regulatory jurisdictional issues between SEBI and IRDA (Insurance Regulatory and Development Authority). ULIP though an insurance policy is aimed at better returns through investment in Equity market has been the bone of contention between SEBI and IRDA, because of which there have been reluctance in its promotion and investments. 4. The Shome committee which was appointed to look into the guidelines of General Anti Avoidance Rules (GAAR) has recommended retrospective application of tax law only in rarest of rare cases. Which of the following recommendation/s is/are made by this panel? 1.To correct anomalies in the statues of Tax laws, 2.To protect the tax base from abusive tax planning schemes with a purpose to avoid tax 3.To correct technical/procedural defects that impairs a substantive law Choose the correct option from the codes given below: [A]1 only [B]2 only [C]3 only [D]1, 2 and 3 Ans:- 1, 2 and 3 Explanation:- The Parthasarathi Shome committee appointed by PM Manmohan Singh to look into GAAR provisions had recommended all the above 3 points for retrospective application of tax laws for a stable and non-adversarial tax regime. 5. Recently the Cabinet Committee on Economic Affairs (CCEA) has deferred its decision on Accelerated Irrigation Benefit Programme (AIBP) for the 12th five year plan (FYP), because of which of the following reasons? [A]Because of non-approval by Planning commission [B]Reports suggesting underutilisation of full potential of irrigation projects created under 10th FYP [C]To readdress changing nature of irrigation requirements [D]All of the above Ans:- All of the above Explanation:- The CCEA has deferred its decision on Accelerated Irrigation Benefit Programme (AIBP) for the 12th five year plan (FYP) which is a programme to support states to improve the irrigation infrastructure so as to increase the share of agricultural contribution to the GDP 6. What is the current share of manufacturing sector in GDP? [A]14.5% [B]16% [C]18% [D]21% Ans:- 16% Explanation:- The current share of manufacturing sector in GDP is 16% and the govt has come up with a new policy aiming to increase this share to 25% by 2025 7. Which one of the following was the purpose of appointment of Rangachary committee? [A]Taxation of software Development
Posted on: Tue, 15 Oct 2013 08:44:45 +0000
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