DAILY QUIZ- DEC 17

1.   Consider the following statements with respect to Modified Interest Subvention Scheme (MISS)

1)   It is a Centrally Sponsored Scheme

2)   Government of India provides Interest Subvention (IS) to the Financial Institutions offering this scheme.

3)   The scheme provide short term and long term loan for agriculture and its allied sectors to farmers

Select the correct answer using the codes given below:

a)    1 and 2 only

b)   2 only

c)    1 and 3 only

d)   1, 2 and 3

Explanation

Modified Interest Subvention scheme (MISS)

Context: Government will provide interest subventions (kind of subsidy) to all financial institutions (Banks) for short-term agriculture loans given to farmers. This will be valid for FY22 to FY24 (2 years) and up to 1.5% interest subvention.

What is interest subvention:

• It is a form of waiver of some percentage of interest from the total interest that one has to pay on a loan taken from financial institutions.
• g., If banks provide loans on 8.5% interest rate to farmers. And if the government provides interest subvention of 1.5%. Then farmers have to pay only 7% interest rate to bank. The difference will be paid by government as subsidy.

About MISS

• Under this, bank provides short term loans upto 3 lakh for all agriculture and allied activities at 7% per annum.
• For prompt repayment of loans: Farmers repaying loans before due data are given extra 3% subventions (i.e., they will have to pay just 4% interest rate)
• Funding: 100% by centre
• Nodal agency: NABARD and RBI

Other schemes for interest subvention: Kisan Credit Card, Agri Market Infrastructure Fund (provide subsidized loans to state and UT) and PM Fasal Bima Yojana.

2.   Consider the following statements with respect to International Transport Forum (ITF)

1)   It is an inter-governmental organization within the OECD system.

2)   ITF is the only global body that covers all transport modes.

3)   India is not a member of ITF

Select the correct answer using the codes given below:

a)    1 and 2 only

b)   3 only

c)    1 only

d)   1, 2 and 3

Explanation

International Transport Forum (ITF)

Context: Cabinet nod to India-France contract to support ITF activities in the Indian transport sector.

The International Transport Forum was created by the "Declaration on the Development of the ECMT" ("Dublin Declaration") agreed by Minister of Transport on 31 May 2006 in Dublin, Ireland.

The International Transport Forum at the OECD is an intergovernmental organisation with 64 member countries. It acts as a think tank for transport policy and organises the Annual Summit of transport ministers. ITF is the only global body that covers all transport modes. The ITF is administratively integrated with the OECD, yet politically autonomous.

India has been a member of ITF since 2008.