Understanding the FRBM Act Enactment
The Fiscal Responsibility and Budget Management Act (FRBM Act) is a crucial law in India designed to instill fiscal discipline and promote responsible budget management by the government. Its primary goal is to ensure transparency and accountability in fiscal operations, thereby promoting long-term economic stability.
Identifying the FRBM Act Enactment Year
The question asks to identify the specific year when the Fiscal Responsibility and Budget Management Act was enacted. This Act outlines rules and targets related to the government's fiscal deficit, revenue deficit, and public debt.
The FRBM Act was passed by the Indian Parliament and received Presidential assent, officially becoming law in the year 2003. The Act aimed to introduce a more predictable and rule-based fiscal framework.
Key Information:
- Legislation: Fiscal Responsibility and Budget Management Act (FRBM Act)
- Objective: To ensure fiscal prudence and consolidate public finances.
- Enacted Year: 2003
The Act sets specific fiscal targets that the government commits to achieving over a period, contributing to macroeconomic stability.
Important Questions from Banking Act or Policies
The General Insurance (Amendment) Act, 2021 removes the provision which required the Central Government to have atleast ________ ownership in four subsidiaries of General Insurance Company, namely, National Insurance, New India Assurance, Oriental Insurance, United India Insurance.
______ is a legal declaration of a person who is unable to pay off debts.
The importance of central bank's function as the lender of the last resort was stressed by Walter Bagehot in which year?
Consider the following statements regarding recently released Reserve Bank of India regarding Treatment of Wilful Defaulters and Large Defaulters Directions, 2023 :
1. The directions are applicable to all regulated entities including NABARD, SIDBI and EXIM Bank.
2. A wilful default borrower needs to be reviewed and finalised within six months of an account being classified as a non-performing asset (NPA).
3. Lender cannot proceed against guarantor without exhausting the remedies against principal debtor.
How many of the statements given above are correct?
Consider the following statements regarding Prompt Corrective Action (PCA) Framework:
1. Currently PCA supervisory norms are applicable to both Government and non-Government NBFC's.
2. Discretionary actions under PCA include Restriction on Branch Expansion.
How many of the statements given above are correct?
