23.10        ndian    onom
     23. (c) In January 2013, the government                         according to norms to be prescribed by
               restructured the National Investment                  the state governments. If a complainant
               Fund (NIF) and decided that the                       (or the officer or authority against whom
               disinvestment proceeds with effect from               an order has been passed by the DGRO)
               the fiscal year 2013–14 will be credited              is not satisfied, he or she may file an
               to the existing ‘Public Account’ under                appeal before the SFC. The SFCs have
               the head NIF and they would remain                    been given power to impose penalties—
               there until withdrawn/invested for the                if an order of the DGRO is not complied
               approved purpose by an Union Budget.                  with, the concerned authority/officer can
               It was decided that the NIF would be                  impose a fine of up to Rs. 5,000.
               utilised for subscribing to the shares       25. (b) The FRBM Act presently does not
               of the CPSE, including public sector                  provide any space to the governments
               banks (their recapitalisation, too) and               (Centre and State) to realign the fiscal
               insurance companies, to ensure 51 per                 deficit target. This is why, in times of such
               cent government ownership in them;                    needs we see the governments not abiding
               investment by the government in RRBs,                 to the fiscal targets set by them—and
               IIFCL, NABARD, Exim Bank; equity                      performance of the Act’s implementation
               infusion in various Metro projects;                   has been mixed. Volatility becoming
               investment in Bhartiya Nabhikiya Vidyut               a kind of new normal in the global
               Nigam Ltd. and Uranium Corporation                    economy, governments need some
               of India Ltd.; investment in railways                 fiscal space—that is why we find a new
               towards capital expenditure.                          school of thought emerging in recent
     24. (d) The NFSA provisions for a two-tier                      times which believes it correct to review
               grievance redressal structure—the State               the FRBM Act. Now in place of a fiscal
               Food Commission (SFC) and District                    deficit number the Government targets a
               Grievance Redressal Officer (DGRO).                   ‘range’-with a flexibility of 0.5 per cent
               The DGROs will be appointed by the                    (implemented since 2018-19 accepting
               state governments for each district to                the advice of the Review Committee on
               hear complaints and take necessary action             the Act).
                                                        SET- 2
       1. Which statement is correct about the ‘liquidity         (d) This is ratio of the short-term and long-
           coverage ratio’ which was in news recently?                  term liquidity available in an economy.
            (a) Corporate houses measure the availability      2. For which of the following purposes Indian
                  of their working capital needs by it.           currency is fully convertible? Select the
           (b) Banks maintain enough liquidity                    correct code:
                  under it for their needs upto 30 days.
                                                                   1. Repatriation of remittances
           (c) RBI uses this to measure the liquidity
                                                                   2. Interest payments of foreign loans
                  supply in the country’s money market
                  by it.                                           3. Direct foreign investment