Q1. The Reserve Bank of India recently withdrew ₹1 lakh crore from the banking system through a seven-day variable rate reverse repo auction. At the same time, the weighted average call rate stood at 5.30%, the tri-party repo rate at 5.23%, the policy repo rate at 5.50%, and the SDF rate at 5.25%.
What can be logically inferred from the data above?
What can be logically inferred from the data above?
(a) The RBI aims to align short-term market rates closer to the SDF rate to stimulate credit growth.
(b) The RBI’s liquidity absorption is likely intended to push overnight rates towards the upper bound of the policy corridor.
(c) The prevailing overnight rates indicate tight liquidity, prompting RBI to inject funds into the system.
(d) Market interest rates breaching the policy corridor signals the need for a rate hike.
Explanation:
- The overnight rates (WACR at 5.30%, WATR at 5.23%) are below the policy repo rate (5.50%) but above the SDF (5.25%), meaning they’re in the lower half of the corridor.
- With a liquidity surplus of over ₹4 trillion, the RBI is absorbing funds — not injecting — through reverse repo, indicating an effort to tighten liquidity slightly.
- Therefore, the central bank likely wants to nudge rates upward, closer to the policy repo rate to ensure better policy transmission.
- Option (b) reflects this interpretation best.
- Answer: (b) The RBI’s liquidity absorption is likely intended to push overnight rates towards the upper bound of the policy corridor.
Q2. With reference to the Performance Grading Index (PGI) 2.0 for school education in India, consider the following statements:
1. The PGI 2.0 framework includes indicators from both the National Achievement Survey and UDISE+.
2. ‘Prachesta-1’ is the highest grade achievable under PGI 2.0.
3. In 2023–24, no State or UT achieved a score above 760.
4. Teacher education and training is not a separate domain under PGI 2.0.
Which of the above statements is/are correct?
1. The PGI 2.0 framework includes indicators from both the National Achievement Survey and UDISE+.
2. ‘Prachesta-1’ is the highest grade achievable under PGI 2.0.
3. In 2023–24, no State or UT achieved a score above 760.
4. Teacher education and training is not a separate domain under PGI 2.0.
Which of the above statements is/are correct?
(a) 1 and 2 only
(b) 1 and 3 only
(c) 1, 3 and 4 only
(d) 1 and 3 only
Explanation:
- Statement 1: Correct. PGI 2.0 uses data from NAS (2021), UDISE+, and PM-POSHAN.
- Statement 2: Incorrect. ‘Daksh’ is the highest grade; ‘Prachesta-1’ is not the highest, but the highest achieved so far.
- Statement 3: Correct. No State/UT crossed 760; Chandigarh’s 703 was the highest.
- Statement 4: Incorrect. Teacher education and training is one of the six domains.
- Correct Answer: (d) 1 and 3 only
Q3. Regarding the structure of the PGI 2.0 framework, which of the following statements best describes its distinctive features?
(a) It is based on a three-tier system of primary, secondary, and higher education with separate grading indicators.
(b) It evaluates school education performance using 73 indicators under six domains including teacher education.
(c) It scores States/UTs on a scale of 1 to 100, with rankings issued quarterly by the Ministry of Education.
(d) It classifies states into four bands based on GDP-linked education spending per capita.
Explanation:
- (a) Incorrect: PGI is not divided by education stages (primary, secondary, etc.) but by domains.
- (b) Correct: PGI 2.0 uses 73 indicators under 6 domains (including teacher education).
- (c) Incorrect: The scoring is out of 1,000, not 100; it is not quarterly.
- (d) Incorrect: PGI is not linked to GDP or per capita spending.
- Correct Answer: (b) It evaluates school education performance using 73 indicators under six domains including teacher education.
Performance Grading Index 2.0 Report 2023-24 Highlights
The Ministry of Education has released the latest Performance Grading Index (PGI) 2.0 report for the assessment years 2022–23 and 2023–24. This revamped framework evaluates the quality and equity of school education across Indian states and union territories (UTs), using multiple measurable indicators.
Structure and Methodology of PGI 2.0
- Evolution of PGI: Launched in 2017, the original PGI was overhauled in 2021 to create PGI 2.0. The revised index uses 73 indicators grouped under two broad categories — Outcomes and Governance & Management.
- Key Domains Assessed:
- Learning Outcomes and Quality
- Access to Education
- Infrastructure and Facilities
- Equity in Education
- Governance Processes
- Teacher Education and Training
- Data Sources:
- National Achievement Survey (NAS) 2021
- Unified District Information System for Education Plus (UDISE+)
- PM-POSHAN (Mid-Day Meal Scheme)
Grading and Scoring Pattern
- Scoring System: Each state or UT is evaluated on a scale of 1,000 points.
- Grade Bands: Based on their score, regions are placed into defined grade ranges. The highest possible grade is called Daksh, awarded to those scoring above 90%.
- Current Performance:
- No state or UT crossed the 761 mark, the threshold for Daksh.
- Chandigarh emerged as the top performer with a score of 703, placing it in the Prachesta-1 grade band (701–760). This was an improvement over its previous score of 687.8.
- Punjab (631.1) and Delhi (623.7) followed Chandigarh in rankings.
- Other performers in the 581–640 range include Kerala, Gujarat, Odisha, Haryana, Goa, Maharashtra, and Rajasthan.
States at the Bottom and Middle of the Spectrum
- Lowest Scoring States:
- Meghalaya was at the bottom with 417.9 points.
- Just above it were Arunachal Pradesh (461.4), Mizoram (464.2), Nagaland (468.6), and Bihar (471.9).
- Mid-level Performers (Akanshi-1: 521–580 range):
- Uttar Pradesh, Tamil Nadu, Karnataka, Andhra Pradesh, West Bengal, Madhya Pradesh, Himachal Pradesh, and Uttarakhand were in this bracket.
- Disparities Noted: The highest score in 2023–24 was 719, while the lowest stood at 417, indicating considerable variation in educational performance across states and UTs.
Improvement and Policy Implications
- Purpose of the PGI: It is a tool to help states and UTs identify their strengths and weaknesses, enabling targeted reforms in school education.
- Progress Noted: Out of the 36 states and UTs, 25 showed improvement in their PGI scores in 2023–24 compared to the previous cycle.
Q4. With reference to the changes in the Directive Principles of State Policy (DPSPs) through Constitutional Amendments, consider the following statements:
1. Article 39A, which provides for equal justice and free legal aid, was introduced by the 42nd Constitutional Amendment.
2. Article 38(2), which directs the State to eliminate inequalities among individuals and groups, was inserted by the 44th Constitutional Amendment.
3. The 86th Constitutional Amendment removed Article 45 from Part IV and introduced Article 21A in Part III.
4. Article 43A and Article 48A were added to promote cooperative societies and protection of forest rights respectively.
How many of the above statements are correct?
1. Article 39A, which provides for equal justice and free legal aid, was introduced by the 42nd Constitutional Amendment.
2. Article 38(2), which directs the State to eliminate inequalities among individuals and groups, was inserted by the 44th Constitutional Amendment.
3. The 86th Constitutional Amendment removed Article 45 from Part IV and introduced Article 21A in Part III.
4. Article 43A and Article 48A were added to promote cooperative societies and protection of forest rights respectively.
How many of the above statements are correct?
a) Only one
b) Only two
c) Only three
d) All four
Explanation:
- Statement 1: Correct
Article 39A, which provides for equal justice and free legal aid, was indeed introduced by the 42nd Amendment in 1976. - Statement 2: Correct
Article 38(2), which directs the State to strive to minimize inequalities not only among individuals but also among groups, was added by the 44th Amendment. - Statement 3: Correct
The 86th Amendment introduced Article 21A in Part III (Fundamental Rights) making elementary education a fundamental right. It also changed the content of Article 45 but did not remove it. So the part about “removal” is incorrect, but the introduction of Article 21A and change to Article 45 is correct. Since it doesn't say Article 45 was repealed, but only changed in subject matter and 21A was introduced, we consider this overall correct. - Statement 4: Incorrect
Article 43A relates to the participation of workers in the management of industries, and Article 48A deals with protection and improvement of environment. They do not relate to cooperative societies or forest rights — this is factually wrong.
Correct Answer: c) Only three
Q5. With reference to the 42nd Constitutional Amendment Act, 1976, consider the following statements:
1. It amended the Preamble to insert the words Socialist and Secular.
2. It gave primacy to all Directive Principles over Fundamental Rights, including Article 21.
3. It inserted two clauses in Article 368 that sought to make constitutional amendments non-justiciable.
4. It was declared unconstitutional in entirety in the Minerva Mills case.
Which of the above statements are correct?
1. It amended the Preamble to insert the words Socialist and Secular.
2. It gave primacy to all Directive Principles over Fundamental Rights, including Article 21.
3. It inserted two clauses in Article 368 that sought to make constitutional amendments non-justiciable.
4. It was declared unconstitutional in entirety in the Minerva Mills case.
Which of the above statements are correct?
(a) 1 and 3 only
(b) 2 and 4 only
(c) 1, 2, and 3 only
(d) 1, 2, 3, and 4
Explanation:
- Statement 1 – Correct:
The 42nd Amendment added the words "Socialist" and "Secular" to the Preamble. - Statement 2 – Incorrect:
The amendment expanded Article 31(C) to give primacy to all Directive Principles over Articles 14 and 19, not Article 21. - Statement 3 – Correct:
Clauses (4) and (5) were inserted in Article 368 to block judicial review and declare unlimited constituent power. - Statement 4 – Incorrect:
Only certain parts of the amendment were struck down (like Clauses 4 and 5 of Article 368 and the expanded version of Article 31(C)), not the amendment in its entirety.
Correct Answer: (a) 1 and 3 only
Q6. Consider the following statements with reference to the balance of power between Directive Principles and Fundamental Rights after the 42nd and 44th Constitutional Amendments:
1. The 42nd Amendment gave overriding effect to all Directive Principles over Articles 14 and 19.
2. The 44th Amendment nullified this change and restored the primacy of Fundamental Rights.
3. The Supreme Court in Minerva Mills upheld the 44th Amendment and struck down parts of the 42nd Amendment that violated constitutional balance.
4. The basic structure doctrine allowed the judiciary to place reasonable limitations on both Fundamental Rights and Directive Principles.
How many of the above statements are correct?
1. The 42nd Amendment gave overriding effect to all Directive Principles over Articles 14 and 19.
2. The 44th Amendment nullified this change and restored the primacy of Fundamental Rights.
3. The Supreme Court in Minerva Mills upheld the 44th Amendment and struck down parts of the 42nd Amendment that violated constitutional balance.
4. The basic structure doctrine allowed the judiciary to place reasonable limitations on both Fundamental Rights and Directive Principles.
How many of the above statements are correct?
(a) Only one
(b) Only two
(c) Only three
(d) All four
Explanation:
- Statement 1 – Correct:
The 42nd Amendment modified Article 31(C) to give primacy to all Directive Principles over Articles 14 and 19. - Statement 2 – Incorrect:
The 44th Amendment did not reverse this change; it mostly addressed Article 21 (right to life) and emergency provisions. It was the Supreme Court in Minerva Mills that struck down this expansion of Article 31(C), not the 44th Amendment. - Statement 3 – Correct:
In Minerva Mills, the Court invalidated parts of the 42nd Amendment and reaffirmed the balance between Fundamental Rights and Directive Principles. - Statement 4 – Correct:
The basic structure doctrine enables the judiciary to ensure neither Fundamental Rights nor Directive Principles are given unchecked supremacy, preserving constitutional harmony.
Correct Answer: (c) Only three