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Question No. 306Interactive Test Mode
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Q306. With reference to India, consider the following statements: 1. Retail investors through Demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in the primary market. 2. The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India. 3. ‘Central Depository Services Ltd’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?

With reference to India, consider the following statements:

  1. Retail investors through Demat account can invest in ‘Treasury Bills’ and ‘Government of India Debt Bonds’ in the primary market.
  2. The ‘Negotiated Dealing System-Order Matching’ is a government securities trading platform of the Reserve Bank of India.
  3. ‘Central Depository Services Ltd’ is jointly promoted by the Reserve Bank of India and the Bombay Stock Exchange. Which of the statements given above is/are correct?
Select the correct option below (or cross out options to eliminate)

Official Answer Key & Detailed Solution

Ready to check the official UPSC Answer Key?

Click any option above to test yourself under exam conditions, or reveal the explanation directly.

Official UPSC Answer KeyUPSC Prelims 2021 • Indian Economy

Correct Answer: Option (B) — 1 and 2

Concept & Option Breakdown

Standard Reference Verified
  • Statement 1 is correct: Under non-competitive bidding schemes and the RBI Retail Direct framework, retail investors can use Demat/Retail Direct accounts to bid for T-Bills and G-Secs in primary auctions.
  • Statement 2 is correct: NDS-OM (Negotiated Dealing System-Order Matching) is RBI's electronic, screen-based, anonymous order matching system for secondary trading in government securities.
  • Statement 3 is incorrect: CDSL was promoted by BSE along with leading commercial banks (like SBI, BOI, HDFC Bank, Bank of Baroda), not by the RBI.
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Question Specifications & Syllabus Mapping

Examination & YearUPSC Civil Services Preliminary Examination 2021 (Q306)
Paper & Marking SchemeGS Paper I • 2 Marks (-0.66 Negative for incorrect response)
Syllabus Subject & TopicIndian Economy → Indian Economic Planning & Growth
Official Answer KeyOption (B) — 1 and 2

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Frequently Asked Questions — UPSC Prelims 2021 Q306

What is the official answer for UPSC Prelims 2021 GS Paper I Question 306 (Indian Economy)?

The official UPSC answer key for this 2021 Indian Economy (Indian Economic Planning & Growth) question is Option (B): "1 and 2". Correct attempts carry 2 Marks with -0.66 Negative penalty for wrong answers.

Which UPSC Prelims syllabus topic does this 2021 question belong to?

This question belongs to GS Paper I under the subject "Indian Economy" and micro-topic "Indian Economic Planning & Growth". You can explore all repeated questions from Indian Economic Planning & Growth in Acme AI's 3D Prelims PYQ Realm or practice 50 full-length and sectional tests in the APT Prelims Test Series.

How can I solve this Indian Economic Planning & Growth UPSC Prelims question using option elimination?

To solve Indian Economic Planning & Growth questions in UPSC Prelims, identify extreme modifiers, verify core NCERT conceptual definitions, and eliminate mutually contradictory statement pairs before locking your final option.

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