Essential Facts (Prelims): 10th January 2019

Composition Scheme

  • Currently, the Composition Scheme allows small manufacturers and traders, with an annual turnover of less than ₹1 crore, to file quarterly returns and pay GST at nominal rates.
  • These traders, however, cannot avail input tax credits or deal in items exempt from GST.


  • The Reserve Bank of India’s (RBI) decision to allow card payment providers to offer tokenisation services will ensure the safety of digital transactions and reduce chances of fraud.
  • Tokenisation involves a process in which a unique token masks sensitive card details like card and CVV number.
  • The token is used to perform card transactions in contactless mode at Point Of Sale (POS) terminals, Quick Response (QR) code payments, etc.
  • Tokenisation is expected to increase digital transactions in India.

Gold scheme

  • The Reserve Bank of India (RBI) made some changes in the Gold Monetisation Scheme (GMS) .
  • Apart from individual and joint depositors, the scheme could now be availed by charitable institutions, the Central government, the State government or any other entity owned by the Central government or the State government.


  • India’s GDP is expected to grow at 7.3% in the fiscal year 2018-19, and 7.5% in the following two years, the World Bank has forecast, attributing it to an upswing in consumption and investment.
  • The bank said India will continue to be the fastest growing major economy in the world.
  • China’s economic growth is projected to slow down to 6.2% each in 2019 and 2020 and 6% in 2021.

Private consumption

  • Domestic private consumption, that accounts for a major portion of India’s gross domestic product (GDP), is expected to develop into a $6 trillion growth opportunity. Currently it is at $1.5 trillion.
  • That would make India the world’s third-largest economy by 2030, says a latest study by the World Economic Forum (WEF).

How the potential will be realised?

  • The potential would only materialise if business and policy-makers pursue an inclusive approach towards the economic and consumption growth.
  • Second, India will have to manage socio-economic inclusion of rural India as, by 2030, 40% of Indians will be urban residents.
  • Finally, business and policy-makers will have to take the initiative on improving health and liveability for India’s citizens.

Mona Lisa Effect

  • In science, the “Mona Lisa Effect” refers to the impression that the eyes of the person portrayed in an image seem to follow viewers as they move.
  • Researchers have demonstrated that this effect does not occur with the Mona Lisa painting by Leonardo da Vinci.

Thirsty landscaping

  • Bangkok is fighting floods with ‘thirsty landscaping.
  • Parks are designed as places not only as a green space in the middle of the congested city but also as a place that could also retain large amounts of water, reducing monsoon flooding around urban areas.
  • Parks and “green roofs” planted with vegetation soak up rain during the annual monsoon and help dense urban centres like Bangkok adapt to climate change.


  • Sikkim will be the first state to roll out Universal Basic Income (UBI) and has started the process to introduce the unconditional direct cash transfer scheme.

10% quota Bill

  • It is 124th Amendment Bill.