Daily UPSC Prelims Current Affairs – March 7-8-9, 2023 [Mock Test]
March 24, 2023 March 24, 2023
1. How is the new pension scheme different from the old pension scheme?
- In the OPS, pension is pre-determined, while in the NPS, pension is a market-linked savings product.
- While OPS is not a subject to the taxation system, the NPS is 100% taxable.
- Under both, the OPS and the NPS, retired employees received 50% of their last drawn salary as monthly pensions.
Choose the correct answer using the codes given below:
[A] Only 1
[B] Only 1 & 2
[C] Only 2 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: A [Only 1]
Notes:- Under the OPS, retired employees received 50% of their last drawn salary as monthly pensions. However, NPS is a contributory pension scheme under which employees contribute 10% of their salary (basic + dearness allowance). The government contributes 14% towards the employees’ NPS accounts.
- Old Pension Scheme (OPS) income is not a subject to the taxation system. The New Pension Scheme (NPS) gives a retirement pension fund that is 60% tax-free upon redemption while the remaining is 40%, which has to be invested in annuities that are 100% taxable.
- In the OPS, it’s predetermined how much pension an employee will get linked to her last drawn salary and length of service. NPS, on the other hand, is a market-linked savings product that has a defined contribution.
- National Pension Scheme (NPS) is a voluntary and long-term retirement investment plan administered by the Pension Fund Regulatory and Development Authority (PFRDA), Ministry of Finance, Government of India.
- The Old Pension Scheme was discontinued in 2004, however, it guaranteed life-long income after retirement.
2. Which of the following are the advantages of Liquid Natural Gas (LNG)?
- LNG has higher energy content per unit volume
- LNG is easily transportable
- LNG has low cost of production
- LNG produces less carbon dioxide than coal or oil
Choose the correct answer using the codes given below:
[A] Only 1 & 2
[B] Only 3 & 4
[C] Only 1, 2 & 4
[D] 1, 2, 3 & 4
Show Answer
Correct Answer: C [Only 1, 2 & 4]
Notes:- LNG is natural gas reduced to a liquid state (liquefaction) through intense cooling to around -161 degrees Celsius (-259 Fahrenheit). This liquid gas is 600 times smaller than the original volume and is half the weight of water.
- LNG is a compressed fossil fuel, which is constituted almost wholly of methane.
- LNG has a higher energy content per unit volume than natural gas in its gaseous form, which means more energy can be stored and transported in the same space.
- LNG can be transported by ship, allowing for greater flexibility in sourcing and distribution.
- LNG takes up less storage space on a vehicle than CNG, and it also offers an energy density that can be compared to diesel fuel.
- When burned, LNG produces less carbon dioxide than coal or oil.
- The process of liquefying and transporting LNG is expensive.
- The extraction, liquefaction, and transport of LNG can have significant environmental impacts, including greenhouse gas emissions and disruption to local ecosystems.
- LNG is highly flammable and can pose a risk of leaks and spills during transport.
- There is currently limited infrastructure for the storage and distribution of LNG, which can make it difficult to implement on a large scale.
3. Consider the following statements with respect to the Online Bond Platforms (OBPs):
- These are electronic systems on which debt securities can be transacted.
- These are outside the SEBI’s regulatory purview.
- OBP providers should be companies incorporated in India.
Which of the statements given above is/are correct?
[A] Only 1
[B] Only 1 & 2
[C] Only 1 & 3
[D] 1, 2 & 3
Show Answer
Correct Answer: C [Only 1 & 3]
Notes:- SEBI has released the regulatory framework for Online Bond Platforms (OBPs) providers to regulate its activities and ensure transparency.
- OBPs are electronic systems (similar to stock exchanges) on which debt securities can be transacted. It provides an avenue for investors, particularly non-institutional investors to access the bond market, however, their operations were outside Sebi’s regulatory purview.
- Online Bond Platform Providers (OBPPs) should be the companies incorporated in India and registered as stock brokers in the debt segment of the stock exchange E.g. GoldenPi is India’s first online platform to buy Bonds and Debentures online for the retail population in India
- Bonds are debt instruments used by companies, and governments to raise long-term loans as against money market instruments where short-term loans (less than a year) can be raised and transacted.
