20 SEPTEMBER CURRENT AFFAIRS (MCQ)

Q1. With reference to Bad Bank, consider the following statements1. It was proposed in Budget 2021.

2. It will acquire stressed assets from public sectors only.
3. It is involved in lending and taking deposits.
   Select the correct answer using the code given belowa) 1 and 2 only
   b) 2 and 3 only
   c) 2 only
   d) 1 only
   Solution: a)
   Explanation:
   Statement 2 and 3 are not correct.
   Bad Bank
   The bad bank is an Asset Reconstruction Company (ARC) or an Asset Management Company (AMC)
   that takes over the bad loans of commercial banks, manages them and finally recovers the money
   over a period of time.
   The bad bank is not involved in lending and taking deposits, but helps commercial banks clean up
   their balance sheets and resolve bad loans.
   The takeover of bad loans is normally below the book value of the loan and the bad bank tries to
   recover as much as possible subsequently.
   About the New Bad Bank Structure:
   Recently, the Union Cabinet approved the Rs 30,600 crore guarantee to back Security Receipts
   issued by National Asset Reconstruction Company Limited (NARCL) for acquiring stressed loan
   assets.
   The NARCL is a part of a new Bad bank structure that was announced in the Budget 2021.
   For resolution of huge NPAs (Non-Performing Assets) in the Indian Banking sector, the government
   of India has set up two new entities to acquire stressed assets from banks and then sell them in the
   market.
   NPA refers to a classification for loans or advances that are in default or in arrears.
   NARCL: NARCL has been incorporated under the Companies Act and has applied to the Reserve Bank
   of India for a license as an Asset Reconstruction Company (ARC).
   NARCL will acquire stressed assets worth about Rs 2 lakh crore from various commercial banks in
   different phases.
   Public Sector Banks (PSBs) will maintain 51% ownership in NARCL.
   Q2. “Crime in India” report is released by:
   a) National Crime Record Bureau
   b) National Statistical Commission
   c) NITI Aayog
   d) None of the above
   Solution: a)
   Explanation:
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    Recently, National Crime Records Bureau (NCRB) released the Crime in India Report 2020.
    While 2020, a year marked by months of a national lockdown due to the pandemic saw fewer
   traditional crimes such as those committed against women and children, among others, it
   witnessed a big spike in civil conflicts.
   National Crime Records Bureau
    NCRB, headquartered in New Delhi, was set-up in 1986 under the Ministry of Home
   Affairs to function as a repository of information on crime and criminals so as to assist the
   investigators in linking crime to the perpetrators.
    It was set up based on the recommendations of the National Police Commission (1977-
   1981) and the MHA’s Task Force (1985).
    NCRB brings out the annual comprehensive statistics of crime across the country (‘Crime in
   India’ report).
   o Having been published since 1953, the report serves as a crucial tool in
   understanding the law and order situation across the country.
   Q3. With reference to Biosphere reserves in India, consider the following statements1. Currently, there are 18 Biosphere Reserves in India, among which 15 Biosphere Reserves in India
   find their place in UNESCO List of Man’s and Biosphere Reserves Program.
4. Recently, “Panna Biosphere Reserve” was included in “Man and Biosphere Program”.
   Which of the following statements are correct?
   a) 1 only
   b) 2 only
   c) Both 1 and 2
   d) Neither 1 nor 2
   Solution: b)
   Explanation:
   Statement 1 is not correct.
   Biosphere Reserves in India:
   Presently, there are 18 Biosphere Reserves in India, among which 12 Biosphere reserves in India
   find their place in UNESCO’s List of Man & Biosphere Reserves Programme.
   The latest included under the MAB was ‘Panna Biosphere Reserve’ (Madhya Pradesh).
   Biosphere Reserves in India
    There are 18 biosphere reserves in India:
   o Cold Desert, Himachal Pradesh
   o Nanda Devi, Uttrakhand
   o Khangchendzonga, Sikkim
   o Dehang-Debang, Arunachal Pradesh
   o Manas, Assam
   o Dibru-Saikhowa, Assam
   o Nokrek, Meghalaya
   o Panna, Madhya Pradesh
   o Pachmarhi, Madhya Pradesh
   o Achanakmar-Amarkantak, Madhya Pradesh-Chhattisgarh
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   o Kachchh, Gujarat (Largest Area)
   o Similipal, Odisha
   o Sundarban, West Bengal
   o Seshachalam, Andhra Pradesh
   o Agasthyamala, Karnataka-Tamil Nadu-Kerala
   o Nilgiri, Tamil Nadu-Kerala (First to be Included)
   o Gulf of Mannar, Tamil Nadu
   o Great Nicobar, Andaman & Nicobar Island
   Man and Biosphere Programme
    Launched in 1971, UNESCO’s Man and the Biosphere Programme (MAB) is an
   intergovernmental scientific programme that aims to establish a scientific basis for the
   improvement of relationships between people and their environments.
    MAB combines natural and social sciences, economics and education to improve human
   livelihoods and the equitable sharing of benefits, and to safeguard natural and managed
   ecosystems, thus promoting innovative approaches to economic development that are
   socially and culturally appropriate, and environmentally sustainable.
   Q4. Which of the following statements are correct about Collegium System of Indian Judiciary?
5. It was introduced in Second Judges Case holding that consultation of Judiciary means
   concurrence.
6. The Supreme Court Collegium is headed by Leader of Opposition and four senior most judges of
   Supreme Court.
7. National Judicial Appointment Commission was struck by Supreme Court on the ground that it
   violates “Independence of Judiciary”.
   Select the correct answer using the code given belowa) 1 and 3 only
   b) 2 only
   c) 2 and 3 only
   d) 1, 2 and 3
   Solution: a)
   Explanation:
   Statement 2 is not correct.
   Collegium System:
   It is the system of appointment and transfer of judges that has evolved through judgments of the
   SC, and not by an Act of Parliament or by a provision of the Constitution.
   Evolution of the System:
   First Judges Case (1981):
   It declared that the “primacy” of the Chief Justice of India (CJI)s recommendation on judicial
   appointments and transfers can be refused for “cogent reasons.”
   The ruling gave the Executive primacy over the Judiciary in judicial appointments for the next 12
   years.
   Second Judges Case (1993):
   SC introduced the Collegium system, holding that “consultation” really meant “concurrence”.
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   It added that it was not the CJI’s individual opinion, but an institutional opinion formed in
   consultation with the two senior-most judges in the SC.
   Third Judges Case (1998):
   SC on President’s reference expanded the Collegium to a five-member body, comprising the CJI and
   four of his senior-most colleagues.
   The SC collegium is headed by the CJI and comprises four other senior most judges of the court.
   A HC collegium is led by its Chief Justice and four other senior most judges of that court.
   Names recommended for appointment by a HC collegium reaches the government only after
   approval by the CJI and the SC collegium.
   Judges of the higher judiciary are appointed only through the collegium system and the government
   has a role only after names have been decided by the collegium.
   The government’s role is limited to getting an inquiry conducted by the Intelligence Bureau (IB) if a
   lawyer is to be elevated as a judge in a High Court or the Supreme Court.
   Q5. Which of the following countries have recently signed “AUKUS” Agreement?
8. United States
9. Australia
10. Japan
11. United Kingdom
12. France
13. India
    Select the correct answer using the code given belowa) 1,2 and 5 only
    b) 1,2 and 4 only
    c) 1,2,3 and 6 only
    d) 1,2,3 and 4 only
    Solution: b)
    Explanation:
    The United States, United Kingdom, and Australia announced a new defence deal on Thursday
    (September 16), under which America and Britain will help Australia deploy nuclear-powered
    submarines in the Pacific region.
    Although the leaders of these three countries did not say so, the deal is seen as a step towards
    curtailing China, which has made significant aggressive manoeuvres in the Pacific region, especially
    in and around the South China Sea, where it has expansive territorial claims.
    The first major initiative of AUKUS, would be to deliver a nuclear-powered submarine fleet for
    Australia. This will include an intense examination of what we need to do to exercise our nuclear
    stewardship responsibilities here in Australia.
    The nuclear-powered submarines will give Australia naval heft in the Pacific, where China has been
    particularly aggressive. While the US and Britain have had the capability for decades, Australia has
    never had an n-sub.