Which one among the following statements is not correct?
- (a)The Financial Stability and Development Council (FSDC) was set up in 2010.
- (b)The National Logistics Policy (NLP) was launched in 2022.
- (c)The Rural Infrastructure Development Fund (RIDF) was instituted in NABARD during 1995-96.
- (d)The G20 was formed in 2001 as a forum of Finance Ministers and Central Bank Governors.
Correct — D, the claim that the G20 was formed in 2001. The G20 was created in 1999, in the aftermath of the East Asian financial crisis, as a forum of finance ministers and central bank governors from the major advanced and emerging economies; its first meeting was held in Berlin in December that year. It was only in 2008, after the global financial crisis, that it was elevated to the level of heads of state and government. The option correctly describes what the G20 originally was — a finance ministers' and central bank governors' forum — and gets only the year wrong, which is the one detail that decides the item. The other three statements are accurate.
- (a)The Financial Stability and Development Council (FSDC) was set up in 2010. — The Financial Stability and Development Council was indeed set up in 2010, chaired by the Union Finance Minister, to strengthen macro-prudential supervision and inter-regulatory coordination.
- (b)The National Logistics Policy (NLP) was launched in 2022. — The National Logistics Policy was launched in September 2022, complementing the PM GatiShakti master plan for multimodal connectivity.
- (c)The Rural Infrastructure Development Fund (RIDF) was instituted in NABARD during 1995-96. — The Rural Infrastructure Development Fund was set up in NABARD in 1995-96, financed by the shortfall in banks' priority sector lending and used to lend to state governments for rural infrastructure.
This item collects four institutional foundings that recur in economy papers. The Financial Stability and Development Council of 2010 was India's answer to the coordination gaps exposed by the global financial crisis. The Rural Infrastructure Development Fund of 1995-96 turned banks' priority-sector shortfalls into state-level rural investment through NABARD. The National Logistics Policy of 2022 aims at reducing logistics costs as a share of the economy. The G20 of 1999 began as a technical finance forum and became the premier forum for international economic cooperation only after 2008.
Negative-stem items with four institutional facts are decided by the one attribute you can date with certainty. The G20's two-stage history is the standard trap: a candidate who remembers the leaders' summits beginning in 2008 may accept any earlier-sounding year for the founding, and 2001 sounds plausible. Anchor it instead to the crisis that produced it — the 1997-98 Asian financial crisis — which places the founding in 1999, not 2001. Keep the two dates as a pair: 1999 for the finance track, 2008 for the leaders' track.
- The G20 was formed in 1999 as a forum of finance ministers and central bank governors.
- It was upgraded to leaders' level in 2008 after the global financial crisis.
- The Financial Stability and Development Council was set up in 2010 and is chaired by the Union Finance Minister.
- The National Logistics Policy was launched in September 2022.
- The Rural Infrastructure Development Fund was instituted in NABARD in 1995-96.
- 1995-96 — Rural Infrastructure Development Fund set up in NABARD
- 1999 — G20 formed as a forum of finance ministers and central bank governors
- 2008 — G20 upgraded to leaders' summit level after the global financial crisis
- 2010 — Financial Stability and Development Council constituted
- 2022 — National Logistics Policy launched
The printed option gets the G20's character right and its year wrong; 2001 belongs to nothing on this list.
- Dating the G20 from its first leaders' summit in 2008 rather than its founding in 1999.
- Assuming a body chaired by the Finance Minister must be a statutory rather than an executive creation.
- Confusing the Rural Infrastructure Development Fund with the later Long Term Rural Credit Fund.
Asked as a negative-stem item on four institutional foundings, where the false option keeps the correct description and moves the year.
With reference to 'Financial Stability and Development Council', consider the following statements: 1. It is an organ of NITI Aayog. 2. It is headed by the Union Finance Minister. 3. It monitors macroprudential supervision of the economy. Which of the statements given above is/are correct?
- (a) 1 and 2 only
- (b) 3 only
- (c) 2 and 3 only
- (d) 1, 2 and 3
Answer(c) 2 and 3 only
The same body appearing as option (a) here, tested on what it is and who chairs it. Prelims has asked about its composition and mandate; this item only needs its founding year.
Which of the following are India's G20 priorities? 1. Green Development 2. Women-led Development 3. Climate Finance 4. Digital Public Infrastructure Select the correct answer using the code given below:
- (a) 1 and 2 only
- (b) 1, 2 and 3 only
- (c) 3 and 4 only
- (d) 1, 2, 3 and 4
Answer(d) 1, 2, 3 and 4
CAPF returns to the G20 regularly. That item tested the agenda of India's presidency; this one tests the year the grouping itself was created.
- practice — not a real PYQ
In which year was the G20 upgraded from a finance ministers' forum to a leaders' summit?
- (a)1999
- (b)2005
- (c)2008
- (d)2010
Answer(c) 2008 — in response to the global financial crisis.
- practice — not a real PYQ
The Rural Infrastructure Development Fund is maintained with which institution?
- (a)Reserve Bank of India
- (b)NABARD
- (c)SIDBI
- (d)State Bank of India
Answer(b) NABARD — financed largely by banks' shortfalls in priority sector lending.