UPSC 2006 Prelims Questions with Answers

Explanation

Nationalized Banks are banks in which the majority stake is held by the government of India. Nationalization was carried out in two major waves (1969 and 1980) to bring a larger portion of the banking sector under government control, with the aim of promoting social and developmental objectives. Private Sector Banks are banks in which the majority stake is held by private individuals, companies, or institutions.

Option (c) is correct: Federal Bank is not a nationalized bank. It is a private sector bank headquartered in Aluva, Kerala.

Explanation

Statement 1 is incorrect: Charter Act of 1853 did not abolish the East India Company’s monopoly of Indian trade. The company’s monopoly on trade with India was abolished earlier by the Charter Act of 1813, and the monopoly on trade with China ended with the Charter Act of 1833. The Charter Act of 1853 primarily focused on restructuring the administration of India and introduced a merit-based civil service.

Statement 2 is correct: Government of India Act, 1858 abolished the rule of the East India Company after the revolt of 1857 and transferred the administration of India directly to the British Crown. It marked the beginning of the British Raj.

Explanation

An indirect tax is one that can be partially or completely shifted from the person who pays it to others. Service Tax falls under this category as it is imposed on service providers but is typically shifted to the service recipient. Other examples are:

Goods and Services Tax (GST), Customs Duty, Excise Duty, Service Tax (before GST), Value Added Tax (VAT) (before GST). A direct tax is one that the taxpayer is obligated to pay directly to the government and cannot be passed on to someone else. Examples include income tax and property tax. Examples of Direct Taxes in India are Income Tax, Corporate Tax, Wealth Tax (now abolished), Capital Gains Tax, Property Tax. Service Tax was an indirect tax imposed by the Central Government on services provided in India until it was subsumed under the Goods and Services Tax (GST) on July 1, 2017. It was introduced under the Finance Act of 1994 and was applicable to various services, including those offered by travel agents, restaurants, and cable providers.

Explanation

The Revolt of 1857, also known as the First War of Indian Independence, marked a major uprising against British rule in India. Triggered by political, economic, and social grievances, it united soldiers, peasants, and rulers.

Option (d) is correct: Tantia Tope, originally named Ramchandra Panduranga, was a prominent leader of the 1857 Revolt from Kanpur, alongside Nana Sahib and Azimullah Khan. Betrayed by Mansingh, Raja of Narwar, loyal to the Scindia of Gwalior who opposed the revolt, Tantia Tope was captured and hanged on April 18, 1859.

Explanation

India’s justice system is a three-tiered structure comprising the Supreme Court at the top, followed by High Courts in each state or group of states, and subordinate courts at the district and local levels. This system ensures the rule of law, protection of rights, and fair adjudication of disputes. Assertion (A) is False: India has 28 states but only 25 High Courts. Some, like the Guwahati High Court, serve multiple states. Therefore, not every state has its own High Court. Reason (B) is True: The Indian Constitution provides for High Courts for each state (Article 214) but Article 231 also enables the Parliament to establish common HC for two or more states or for two or more States and a Union territory.

Explanation

PILs protect disadvantaged communities who can’t seek justice themselves. They can be filed in the Supreme Court and High Courts under Article 32 (right to move the Supreme Court) and Article 226 (power of High Courts to issue writs). Justice P.N. Bhagwati introduced Public Interest Litigation (PIL) in India in the 1980s, broadening the judiciary’s role to address public grievances and protect marginalized communities. His efforts democratized the judicial process, allowing direct court access for significant public matters. This made the justice system more accessible and responsive to societal issues. However, the concept was first pioneered by Justice V.R. Krishna Iyer in cases like Mumbai Kamgar Sabha vs. Abdulbhai Faizullabhai (1976) and Fertilizer Corporation Kamgar Union vs. Union of India (1981). Justice Bhagwati significantly expanded PILs through landmark cases like Hussainara Khatoon vs. State of Bihar (1979) and S.P. Gupta vs. Union of India (1981).

Explanation

The judges and the Chief Judge of a HC are appointed by the President after consultation with the Chief Justice of India and the Governor of the concerned state.

Statement 1 is incorrect: Article 220 of the Indian Constitution prohibits retired High Court judges from practicing in the same High Court but allows them to practice in other courts in India, including the Supreme Court.

Statement 2 is incorrect: Article 217 of the Indian Constitution stipulates that a person can be appointed as a High Court judge if they have held a judicial office in India for at least ten years or have served as an advocate of a High Court (or High Courts in succession) for at least ten years.

Explanation

The Fiscal Responsibility and Budget Management Act (FRBMA), 2003, is a legislation enacted by the Government of India to institutionalize fiscal discipline, reduce fiscal deficits, and improve macroeconomic management. The Act specifically targets both fiscal deficit and revenue deficit:

Fiscal deficit is the difference between the government’s total expenditure and its total revenue (excluding borrowings). The FRBMA aims to reduce the fiscal deficit to a manageable level, typically around 3% of GDP, to ensure long-term fiscal sustainability. Revenue deficit is the difference between the government’s revenue expenditure and its revenue receipts. The FRBMA aims to eliminate the revenue deficit, as it indicates that the government is borrowing to meet its day-to-day expenses, which is not sustainable in the long run. Other provisions of FRBMA:

The Act mandates the government to lay before Parliament Medium-Term Fiscal Policy Statements, Fiscal Policy Strategy Statements, and Macroeconomic Framework Statements. It sets targets for reducing fiscal and revenue deficits over a specified period. It prohibits the government from borrowing from the Reserve Bank of India (RBI) after 2006, except under exceptional circumstances.

Explanation

Union List in the Seventh Schedule of the Constitution of India enumerates subjects on which only the Parliament has exclusive legislative powers.

Option (a) is correct: Under the Seventh Schedule, the Union List includes 100 subjects (originally 97), covering matters of national importance. Among the options:

Regulation of labour and safety in mines and oilfields - Falls under the Union List (Entry 55). These industries involve inter-state implications, requiring uniform regulation. Agriculture - Falls under the State List (Entry 14), as it is primarily a state subject. Fisheries - Fisheries in inland and territorial waters are in the State List (Entry 21), while regulation of fisheries in EEZ and beyond territorial waters is in the Union List (Entry 57). Public Health - Falls under the State List (Entry 6)

Explanation

Madame Bhikaji Cama, a Parsi revolutionary who had developed contacts with French socialists worked from Paris and Geneva. She published the journal Bande Mataram.

Statement 1 is incorrect: Madam Bhikaji Cama actually unfurled the first version of the Indian National Flag at the Second International Socialist Congress held in Stuttgart, Germany, in 1907, not Paris. The flag was co-designed by Madam Cama, Vinayak Damodar Savarkar and Shyamji Krishna Varma. The flag had green, saffron, and red stripes, with "Vande Mataram" written on it in Devanagari script, and symbols representing different communities of India.

Statement 2 is correct: Madam Bhikaji Cama did serve as the private secretary to Dadabhai Naoroji, a key figure in the Indian National Congress and a prominent advocate for India’s independence.

Statement 3 is correct: Bhikaji Cama was born into a wealthy Parsi family in Bombay (now Mumbai) in 1861. Her father, Sorabji Framji Patel was a well-known merchant and philanthropist.