UPSC Prelims 2011 · GS Paper I: All revenues received by the Union Government by way of taxes and other receipts…

Consolidated Fund of India is correct (c). Under Article 266(1), all revenues of the Union, all loans it raises and all loan repayments it receives are credited to the Consolidated Fund of India. (a) is wrong: the Contingency Fund (Article 267) is a small emergency reserve, now ₹30,000 crore, placed at the President's disposal. (b) is wrong: the Public Account (Article 266(2)) holds money the government only keeps for others, such as provident funds and small savings. (d) is wrong: deposits and advances are a section within the Public Account.

Notice the rule: withdrawals from the Consolidated Fund need Parliament's vote, while Public Account payments do not. Trap: 'all receipts' points only to the Consolidated Fund.

Answer as per the official UPSC answer key.

ONDC aims to break the dominance of large platforms (c). The Open Network for Digital Commerce, a DPIIT initiative (2021-22), is an open set of rules, like UPI for shopping. A buyer on one app can buy from a seller listed on another app. This interoperability lets small sellers reach buyers without joining a giant platform. Option (a) is wrong: it does not give the government control of transactions. Option (b) is wrong: private players can join; they are not replaced. Option (d) is wrong: it does not force UPI payments.

Notice ONDC's design: it is a not-for-profit company and part of India's Digital Public Infrastructure, along with Aadhaar, UPI and DigiLocker. It now covers food, groceries and mobility too.

Answer as per the official UPSC answer key.

Open this question's page →

Statement (d) is not correct (d). Under UPI, money moves between bank accounts; the deposit is a liability of the bank. The Digital Rupee (e₹) is like a currency note in digital form, a direct liability of the RBI, not of users or banks. Option (a) is correct: UPI is a payment system, while the e-rupee is sovereign currency. Option (b) is correct: an e-rupee transfer moves value from wallet to wallet with no separate settlement. Option (c) is correct: e-rupee wallet transactions do not appear in bank statements.

Notice the legal base: the RBI Act was amended in 2022 to let the RBI issue a CBDC. Pilots began that year in wholesale (e₹-W) and retail (e₹-R) forms.

Answer as per the official UPSC answer key.

Open this question's page →

All three statements are correct (a). Statement 1 is right: tokenization turns a real asset, like a building, bond or gold, into digital tokens recorded on a blockchain. Statement 2 is right: tokens can be traded 24x7, which widens financial inclusion. Statement 3 is right: small, fractional tokens let ordinary individuals get into high-growth investments that once needed crores. So options (b), (c) and (d) fail.

Notice the risks: unclear regulation, cyber threats and weak investor protection. In India, related steps include Fractional Ownership Platforms and REITs and InvITs, which already let small investors own slices of real estate and infrastructure. The RBI is also testing tokenized deposits and government securities in sandbox pilots.

Answer as per the official UPSC answer key.

Open this question's page →

This is a sustainability bond (c). Under the ICMA principles followed worldwide, a bond that funds a mix of environmental and social projects is a sustainability bond. Option (a) is wrong: a green bond funds only environmental projects, like solar power. Option (b) is wrong: a social bond funds only social projects, like affordable housing. Option (d) is wrong: a sovereign bond is any bond issued by a national government, whatever its use.

Notice India's practice: India has issued Sovereign Green Bonds since January 2023, with the money going to projects like metro rail and renewable energy. A sustainability-linked bond is different: its money can go anywhere, but its interest rate depends on meeting ESG targets.

Answer as per the official UPSC answer key.

Open this question's page →