Amendments
to the National Bank for Agriculture and Rural Development (NABARD) Act, 1981
The Union Cabinet today gave
its approval to the amendments to the National Bank for Agriculture and Rural
Development (NABARD) Act 1981.
The following amendments
to the NABARD Act 1981 are proposed:-
1. Raising the authorized capital of NABARD to Rs. 20,000 crore from Rs. 5,000 crore.
1. Raising the authorized capital of NABARD to Rs. 20,000 crore from Rs. 5,000 crore.
2.
The meaning of cooperative society is proposed to be enlarged to include
multistate cooperative societies registered under any Central law or any other
Central or State law relating to cooperative societies.
3.
Change of ownership to facilitate the transfer of the remaining share capital
of NABARD from the Reserve Bank to the Central Government.
4.
Increasing the scope of operations of NABARD under short term funding purposes
and other changes.
The following benefits
are projected by this amendment:-
1. By increasing the authorized capital of NABARD to Rs 20,000 crore from Rs 5,000 crore, the ability of NABARD to mobilize resources from the market will be enhanced thereby new credit products, new credit linkages and new clients will be developed.
1. By increasing the authorized capital of NABARD to Rs 20,000 crore from Rs 5,000 crore, the ability of NABARD to mobilize resources from the market will be enhanced thereby new credit products, new credit linkages and new clients will be developed.
2. The amendments
allow NABARD to lend to new institutions, mainly Societies covered under
multistate cooperative societies act and other central laws, producer
organizations or such class of financial institutions which are approved by the
Central Government. This is likely to benefit a larger segment of the
financially excluded farmers in the country.
3. The amendments allow combination of credit, creation of short term operations fund and swapping of debt of farmers.
4. The decision of the Government to transfer the balance one percent shares to the Govt. of India from Reserve Bank of India (RBI) in NABARD shall be carried out, which will provide for increased public accountability, as the Government will acquire the equity held by RBI.
3. The amendments allow combination of credit, creation of short term operations fund and swapping of debt of farmers.
4. The decision of the Government to transfer the balance one percent shares to the Govt. of India from Reserve Bank of India (RBI) in NABARD shall be carried out, which will provide for increased public accountability, as the Government will acquire the equity held by RBI.
5. NABARD will
combine the post of Chairman and the post of Managing Director, into one,
therefore Chairman and Managing Director, under the provisions of the NABARD
Act relating to these two posts. This shall ensure a distinct line of command.
Questions
1. Which of the following statement is incorrect.
Regarding the reform brought in through New Industries Policy 1991.
(a) FDI permitted to 51% and also 74% in certain industries.
(b) Delicensing of host of industries and the abolition of all registration schemes.
(c) Scrapping of policy on consolidated one time manufacturing programmes.
(d) Scrapping mandatory convertibility clause.
(a) FDI permitted to 51% and also 74% in certain industries.
(b) Delicensing of host of industries and the abolition of all registration schemes.
(c) Scrapping of policy on consolidated one time manufacturing programmes.
(d) Scrapping mandatory convertibility clause.
2. The following statements are the cause of
Industrial Sickness. Choose the incorrect code:
(a) Managerial Ineffectiveness
(b) High Manufacturing cost compared to sales
(c) Non-availability of Labour
(d) Non-availability of raw material
(e) Non-availability of regular power, fuel etc.
3. In context of types of money, match the following:
A. Fiduciary Money 1. Involves fulfilment of a general monetary obligation.
B. Full Bodied Money 2. Money authorised by govt.
C. Fiat Money 3. Intrinsic value equal to face value
D. Legal Tender Money 4. Intrinsic value less than face value.
Code:
A B C D
(a) 4 3 2 1
(b) 3 4 1 2
(c) 2 1 4 3
(d) 1 2 3 4
(a) Managerial Ineffectiveness
(b) High Manufacturing cost compared to sales
(c) Non-availability of Labour
(d) Non-availability of raw material
(e) Non-availability of regular power, fuel etc.
3. In context of types of money, match the following:
A. Fiduciary Money 1. Involves fulfilment of a general monetary obligation.
B. Full Bodied Money 2. Money authorised by govt.
C. Fiat Money 3. Intrinsic value equal to face value
D. Legal Tender Money 4. Intrinsic value less than face value.
Code:
A B C D
(a) 4 3 2 1
(b) 3 4 1 2
(c) 2 1 4 3
(d) 1 2 3 4
4. RBI has two broad instruments of monetary policy
one quantitative other qualitative which of the following is not a quantitative
method of control.
(a) Variable Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Special Drawing Rights
(d) Reverse Repurchase Option
5. Consider the following statements in context of functions of RBI.
1. As "Bank of Issue" RBI has the sole right to issue bank notes of all denomination.
2. As "Banker to Govt." RBI acts as an agents of Central Government for all states in India including J & K.
3. As "Banker's Bank" all commercial banks maintain current accounts with RBI.
Which of the above codes are correct:
(a) All (b) None
(c) 1 and 3 (d) 2 and 3
(e) 1 and 2
(a) Variable Reserve Ratio
(b) Statutory Liquidity Ratio
(c) Special Drawing Rights
(d) Reverse Repurchase Option
5. Consider the following statements in context of functions of RBI.
1. As "Bank of Issue" RBI has the sole right to issue bank notes of all denomination.
2. As "Banker to Govt." RBI acts as an agents of Central Government for all states in India including J & K.
3. As "Banker's Bank" all commercial banks maintain current accounts with RBI.
Which of the above codes are correct:
(a) All (b) None
(c) 1 and 3 (d) 2 and 3
(e) 1 and 2
