UPSC Prelims 2022 · GS Paper I
Question 63: Economy and Social Development
Consider the following statements :
- 1.In India, credit rating agencies are regulated by Reserve Bank of India.
- 2.The rating agency popularly known as ICRA is a public limited company.
- 3.Brickwork Ratings is an Indian credit rating agency.
Which of the statements given above are correct ?
AnswerUPSC’s answer is (b).
Credit rating agencies in India are regulated by SEBI under the SEBI (Credit Rating Agencies) Regulations, 1999, not by the Reserve Bank of India, so statement 1 is false. ICRA is a public limited company listed on the stock exchanges. Brickwork Ratings is an Indian credit rating agency registered with SEBI. So statements 2 and 3 are correct.
- 1. SEBI regulates credit rating agencies, not RBI.
- 2. ICRA is a listed public limited company.
- 3. Brickwork Ratings is an Indian, SEBI-registered agency.
How you could have got this
- If you were sure statement 1 is not correct, (a), (c) and (d) go: each of them includes 1.
What you needed to know: SEBI regulates credit rating agencies, not RBI.
Only (b) is left. You didn’t need statements 2 or 3.
Which options go is worked out from UPSC’s key and the options, not by a model.
Why each option is right or wrong
- (a) Wrong. Statement 1 is false: SEBI, not RBI, regulates rating agencies.
- (b) Correct. ICRA is a public limited company and Brickwork is an Indian agency.
- (c) Wrong. Statement 1 is false.
- (d) Wrong. Statement 1 is false.
Answer: UPSC’s key. Explanation: written by UPSC Grade, not by UPSC.
Source: UPSC, Civil Services (Preliminary) Examination 2022, General Studies Paper I, Series A. The paper on upsc.gov.in.