103 + Interview Questions in FINANCIAL AWARENESS in BANKING FINANCIAL AWARENESS

1.	The Security Printing and Minting Corporation of India Limited was established in the year ________. 1). 20062). 20053). 20044). 2010
Answer» The Security Printing and Minting Corporation of INDIA Limited (SPMCIL) was SET up in January 2006. It is ENGAGED in the printing of banknotes, minting of coins, manufacturing of security papers, non-judicial stamp papers, passports ETC. The SPMCIL is formed with nine units, FOUR mints, four presses and a security paper mill.

Discussion

2.	1). 500 Cr2). 400 Cr3). 300 Cr4). 200 Cr
Answer» For Small Finance Banks The MINIMUM paid-up equity capital for small finance banks shall be Rs. 100 crore. The PROMOTER’s minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent and gradually brought down to 26 PERCENT within 12 years from the date of COMMENCEMENT of BUSINESS of the bank. For Payments Bank The minimum paid-up equity capital for payment banks shall be Rs. 100 crore. The promoter’s minimum initial contribution to the paid-up equity capital of such payments bank shall at least be 40 percent for the first five years from the commencement of its business.

2.

1). 500 Cr2). 400 Cr3). 300 Cr4). 200 Cr

Answer»

For Small Finance Banks

The MINIMUM paid-up equity capital for small finance banks shall be Rs. 100 crore.
The PROMOTER’s minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent and gradually brought down to 26 PERCENT within 12 years from the date of COMMENCEMENT of BUSINESS of the bank.

For Payments Bank

The minimum paid-up equity capital for payment banks shall be Rs. 100 crore.
The promoter’s minimum initial contribution to the paid-up equity capital of such payments bank shall at least be 40 percent for the first five years from the commencement of its business.

Discussion

3.	LSR is a mismatch on bank’s balance sheets. What is the meaning of ‘L’ in ‘LSR’?1). Least2). Liquidity3). Legal4). Low
Answer» LSR stands for Liquidity Stress Ratio (LSR). LSR is the ratio of potential money OUTFLOW to the actual money inflow during a certain period. LSR calculates the liquidity shortfall, a mismatch in the BANK’s balance sheets of a Bank HOLDING COMPANY (BHC) during the financial crisis. LSR is used to describe the liquidity condition of the banking sector and may offer an early warning signal of a liquidity or financial crisis.

Discussion

4.	RBI issued short-term debt management instruments known as CMBs. What does ‘B’ stand for in the same?1). Bills2). Bonds3). Banks4). Branch
Answer» CMBs STAND for CASH Management Bills. These are short-term instruments issued by the RBI on behalf of the central government to meet the temporary mismatches in the cash FLOW of the Government of INDIA. These are issued for maturities less than 91 days.

Discussion

5.	1). AC Shah Committee2). A Ghosh Committee3). Abid Hussain Committee4). Nachiket Mor Committee
Answer» Usha Thorat COMMITTEE PROPOSED the idea for SMALL Finance BANKS

Discussion

6.	Which of the following terms does NOT figure in FINO?1). Financial2). Inclusion3). Operation4). Network
Answer» FINO STANDS for Financial Inclusion NETWORK OPERATION.

Discussion

7.	1). Only I and II are correct2). Only III is correct3). Only II is correct4). All are correct
Answer» The following are the features of the Government Securities: These can be ISSUED by the CENTRAL Government, States government, Semi-Government authorities, Autonomous institutions, PSCs, and other governmental AGENCIES. These have a fixed rate of INTEREST. RBI can keep them to monitor the monetary policy Interest earned on them is exempted from the income tax, subjected to the limits under the Income Tax Act. They have a fixed maturity period.

Discussion

8.	Market risks are most prominent for banks engaged in1). Retail banks2). Investment banks3). Commercial banks4). Central banks
Answer» Market RISK is a type of risk in which losses in on- or off-balance SHEET POSITIONS due to movement in market prices. Market risk is the most prominent for banks present in INVESTMENT banking. EG JP Morgan, Bank of America.

Discussion

9.	What does second 'C' denotes in C A LC S?1). Capital Adequacy2). Clearence3). Customer4). Compliance
Answer» CALCS is a RATING maintained by RBI to check and supervise the functioning of foreign banks RUNNING in India. Here CALCS stands forCapital Adequacy ASSETS Quality Liquidity Compliance SYSTEM.

Discussion

10.	Ujjivan SFB has announced the launch of its overdraft facility for all MSEs with a turnover of Rs ________ lakhs or more.1). 102). 253). 504). 65
Answer» Ujjivan Small Finance Bank announced the launch of its overdraft facility for micro and small enterprises (MSE). The facility is an add-on product to the EXISTING MSE TERM loans OFFERED by the bank. The bank will OFFER this facility to all MSEs with a turnover of Rs 50 lakh or more. Ujjivan Small Finance Bank (Ujjivan SFB) started its banking OPERATIONS in February 2017.

Discussion

11.	The minimum age required to open a saving bank account in India is:1). 1 month2). 6 months3). 5 years4). 8 years
Answer» As per the notification ISSUED by RBI in 2014, the banks were advised to allow minors’ accounts (fixed and savings deposit accounts) with mothers as guardians to be opened. A savings / fixed/recurring bank deposit ACCOUNT can be opened by a minor of any AGE through his/her natural or legally appointed guardian. Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently if they so desire.

11.

The minimum age required to open a saving bank account in India is:1). 1 month2). 6 months3). 5 years4). 8 years

Answer»

As per the notification ISSUED by RBI in 2014, the banks were advised to allow minors’ accounts (fixed and savings deposit accounts) with mothers as guardians to be opened.

A savings / fixed/recurring bank deposit ACCOUNT can be opened by a minor of any AGE through his/her natural or legally appointed guardian.
Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently if they so desire.

Discussion

12.	1). Electronic Dealer Finance System2). Electronic Dealer Finance Service3). Economic Development Finance Service4). Electronic Disbursal Finance System
Answer» It is an application that aims to automate the loan disbursal and interest recovery process and provides a repayment model through Internet banking and other CHANNEL systems. The application is customizable for all customers who require a Dealer Discount Scheme and enjoy dealer financing limits with STATE Bank of India. From low-interest rates to zero TRANSACTION costs, through eDFS platform, SBI has made transfers hassle-free and convenient for every dealer. eDFS has a CUSTOMER-friendly application that allows the customer to execute high-value transactions in no time through a secure medium.

12.

1). Electronic Dealer Finance System2). Electronic Dealer Finance Service3). Economic Development Finance Service4). Electronic Disbursal Finance System

Answer»

It is an application that aims to automate the loan disbursal and interest recovery process and provides a repayment model through Internet banking and other CHANNEL systems.

The application is customizable for all customers who require a Dealer Discount Scheme and enjoy dealer financing limits with STATE Bank of India.
From low-interest rates to zero TRANSACTION costs, through eDFS platform, SBI has made transfers hassle-free and convenient for every dealer.
eDFS has a CUSTOMER-friendly application that allows the customer to execute high-value transactions in no time through a secure medium.

Discussion

13.	Which country introduced the concept of Self Help Group has been taken ?1). India2). Pakistan3). Nepal4). Bangladesh
Answer» The CONCEPT of SHG has been TAKEN from BANGLADESH.

Discussion

14.	Which among the following is/are the function(s) of the Reserve Bank of India?1). It is the banker to the banks as well as the government. 2). It issues license to banks to start operations in the country.3). It issues and manages currency in the country.4). It is the debt manager of the government
Answer» Reserve Bank of India is the central banking AUTHORITY of the COUNTRY. The major functions of the bank are: It regulates the banking sector of the country. It regulates the MONEY supply in the country by announcing IMPORTANT policy rates. It issues and manages the CURRENCY in India. It manages the foreign exchange in the country. It is the banker to banks as well as the government. It is the lender of last resort to the banks. It is the debt manager of the government.

14.

Which among the following is/are the function(s) of the Reserve Bank of India?1). It is the banker to the banks as well as the government. 2). It issues license to banks to start operations in the country.3). It issues and manages currency in the country.4). It is the debt manager of the government

Answer»

Reserve Bank of India is the central banking AUTHORITY of the COUNTRY. The major functions of the bank are:

It regulates the banking sector of the country.
It regulates the MONEY supply in the country by announcing IMPORTANT policy rates.
It issues and manages the CURRENCY in India.
It manages the foreign exchange in the country.
It is the banker to banks as well as the government.
It is the lender of last resort to the banks.
It is the debt manager of the government.

Discussion

15.	When a company or a person is unable to repay their outstanding debts, it is known as?1). NPA2). Bankruptcy3). Fraud4). Defaulter
Answer» When a COMPANY or a PERSON is unable to repay their outstanding debts, it is known as bankruptcy. Bankruptcy is imposed by a court order and OFTEN initiated by borrower. Insolvency and Bankruptcy Code, 2016 is the law of India that implement and governssingle law for insolvency and bankruptcy.

Discussion

16.	Which of the following is/are NOT a feature of Wholesale Banking?1). Underwriting of shares and Merchant banking2). Managing Merger and acquisitions3). Accepting deposit4). Consultancy services
Answer» WHOLESALE BANKING is a concept where besides PRIMARY services like accepting DEPOSIT and providing credit, BANKS provide a host of services to the clients like merchant banking, consultancy services and financial management.

Discussion

17.	1). Only i2). Only i and iii3). Only ii and iii4). Only ii
Answer» i) Monetary Policy is the macroeconomic policy laid down by the central bank. The Monetary Policy committee is of 6 MEMBERS 3 from RBI and 3 external members NOMINATED from GOVERNMENT of INDIA.

17.

1). Only i2). Only i and iii3). Only ii and iii4). Only ii

Answer»

i) Monetary Policy is the macroeconomic policy laid down by the central bank.

The Monetary Policy committee is of 6 MEMBERS 3 from RBI and 3 external members NOMINATED from GOVERNMENT of INDIA.

Discussion

18.	Which of the following is a characteristic of commercial Bank?1). It is registered under schedule 2(e) of RBI Act 19342). It works for their own profit3). They indulge in customer dealings4). All of these
Answer» A COMMERCIAL bank is a type of financial institution that provides SERVICES such as ACCEPTING deposits, MAKING BUSINESS loans, and offering basic investment products to the general public and to companies.

Discussion

19.	Union HRD Minister Prakash Javadekar has announced the "Swachh Campus rankings" under ________ different categories on 1 October 2018.1). 52). 63). 74). 8
Answer» Union HUMAN RESOURCE Development Minister Prakash Javadekar announced the "Swachh Campus rankings" under 8 different categories on 1 October 2018. Haryana's Maharashi Dayanand University has been ranked the cleanest government university by the HRD Ministry. Among the technical institutions, AMRITA Vishwa Vidyapeetham in Coimbatore bagged the TOP RANK.

Discussion

20.	Small Industries Development Bank of India (SIDBI) has charted a plan to promote micro-enterprises in various districts of India. How many districts has SIDBI selected for the purpose?1). 1052). 1003). 1104). 115
Answer» Small Industries Development Bank of India (SIDBI) has charted a plan to promote micro-enterprises in 115 aspirational districts of India. ACCORDING to Government of India, micro-enterprises are the business on a very small scale with a total investment between 25 lakh to 10 crores in the manufacturing SECTOR and 10 lakhs to 5 crores in the service sector. SIDBI decided these 115 aspirational districts and made District Magistrates as ‘prabhari’ officers to implement the program.

Discussion

21.	The main aim of the Asian Development Bank (ADB) is to promote social and economic development in Asia. Where is the headquarters of ADB located?1). Mumbai, India2). Tokyo, Japan3). Bangkok, Thailand4). Manila, Philippines
Answer» The headquarters of ADB is in Manila, Philippines. ADB was established on 19 DECEMBER 1966 on the recommendations of the Economic Commission for Asia-Pacific REGION (ECAFE) to promote social and economic development in Asia. It PROVIDES loans, technical assistance, grants and investments to all PROJECTS in the Asia-Pacific region. Currently, ADB has 67 members of which 48 are from within Asia-Pacific region and 19 from outside.

Discussion

22.	Who amongst the following is/are Deputy Governors of RBI?1). M.K. Jain2). B.P. Kanungo3). N S Vishwanathan4). Viral V Acharya
Answer» M.K. JAIN was APPOINTED as the fourth Deputy Governor of the Reserve Bank of India (RBI) on June 2018. M.K. Jain was the MD & CEO of IDBI Bank before being appointed as Deputy Governor for a term of three years. The other 3 deputy governors are N S Vishwanathan, VIRAL V Acharya and B P Kanungo.

Discussion

23.	Which of the following banks was not nationalized in 1969?1). Punjab National Bank2). Bank of India3). State Bank of India4). Bank of Baroda
Answer» SBI On 19 July 1969, by means of an Ordinance, the Indira Gandhi - led Congress government nationalised 14 commercial banks of the country. The ordinance that MADE bank nationalisation possible on 19 July was called the Banking COMPANIES (Acquisition and Transfer of UNDERTAKINGS) Ordinance. TILL 1969, the State Bank of India (SBI) was the only bank that was not PRIVATELY owned. It was called the Imperial Bank before its nationalisation in 1955.

23.

Which of the following banks was not nationalized in 1969?1). Punjab National Bank2). Bank of India3). State Bank of India4). Bank of Baroda

Answer»

SBI

On 19 July 1969, by means of an Ordinance, the Indira Gandhi - led Congress government nationalised 14 commercial banks of the country. The ordinance that MADE bank nationalisation possible on 19 July was called the Banking COMPANIES (Acquisition and Transfer of UNDERTAKINGS) Ordinance. TILL 1969, the State Bank of India (SBI) was the only bank that was not PRIVATELY owned. It was called the Imperial Bank before its nationalisation in 1955.

Discussion

24.	1). Only i,ii and iv2). Only i, iii and iv3). Only ii, v, vi4). Only ii, iv, vi and i
Answer» Money MARKET INSTRUMENT used by Bank to take loans from RBI are REPO Rate, Bank rate, and MSF. Repo rate is for TAKING loan for 90 days, MSF for ONE day and Bank Rate for 90 days to 364 days. Call Money, Notice money and Term money are money market Instrument for Bank to Bank loan.

Discussion

25.	A type of debt instrument that is not secured by physical assets is known as?1). Collateral2). Debenture3). Bond4). Indenture
Answer» A debenture is a type of debt instrument that is not secured by physical assets. Collateral is defined as a property or asset that a borrower OFFERS to the lender as SECURITY for repayment of a loan. Bond is a signed PROMISE to pay a certain sum of money on a certain date or fulfillment of a specific condition. BONDS may or may not be secured by collateral. Indenture is a legal document published by the issuer of a security giving details about the terms and CONDITIONS about the agreement.

Discussion

26.	Which of the following bank cannot issue Priority Sector Lending Certificates (PSLC)? 1). Regional Rural Banks (RRBs)2). Local Area Banks (LABs)3). Small Finance Banks4). Payments Bank
Answer» Payments Bank cannot buy/sell PSLC. Scheduled Commercial Banks (SCBs), Regional RURAL Banks (RRBs), Local Area Banks (LABs), Small FINANCE Banks (when they BECOME OPERATIONAL) and Urban Co-operative Banks who have ORIGINATED PSL eligible category loans subject to such regulations as may be issued by the Bank.

26.

Which of the following bank cannot issue Priority Sector Lending Certificates (PSLC)? 1). Regional Rural Banks (RRBs)2). Local Area Banks (LABs)3). Small Finance Banks4). Payments Bank

Answer»

Payments Bank cannot buy/sell PSLC.

Scheduled Commercial Banks (SCBs), Regional RURAL Banks (RRBs), Local Area Banks (LABs), Small FINANCE Banks (when they BECOME OPERATIONAL) and Urban Co-operative Banks who have ORIGINATED PSL eligible category loans subject to such regulations as may be issued by the Bank.

Discussion

27.	________ provides services to organisations such as mortgage Brokers, large corporate clients, mid-sized companies,real estate developers & investors,international trade finance businesses,etc.1). UniversalBanking 2). Merchant Banking3). Retail Banking4). Islamic Banking
Answer» WHOLE Sale Banking PROVIDES services to organisations such as mortgage BROKERS, large corporate clients, mid-sized companies,REAL estate developers & investors,international trade finance businesses,etc.

Discussion

28.	KYC guidelines have been issued by RBI under ________.1). Section 35A of Banking Regulation Act2). Section 35A Prevention of Money Laundering Act3). Section 35 of Banking Regulation Act4). Section 35B of RBI Act
Answer» KYC guidelines have been issued by RBIunder Section 35A of the Banking REGULATION Act, 1949

Discussion

29.	Shekatkar Committee report is related to which of the following fields?1). To suggest methods for increasing NPAs in the banking sector2). To recommend measures to enhance combat capability of the armed forces3). To suggest steps about the effective cleaning of the river Ganges4). To look into increasing unemployment in the country
Answer» Shekatkar COMMITTEE was CONSTITUTED by the Ministry of Defence to recommend MEASURES to enhance combat capability and rebalance defence expenditure of the armed forces. The committee had submitted around 99 recommendations. So far, Defence Ministry has approved 65 of these recommendations pertaining to Indian ARMY for implementation.

Discussion

30.	In terms of call money, what does I in MIBOR stand for?1). International2). Interbank3). India4). Interstate
Answer» MIBOR is the acronym for Mumbai INTERBANK Offer RATE. It is the rate at which banks BORROW unsecured funds from ONE another in the interbank market.

Discussion

31.	What is ‘Narrow Money’?1). The sum of currency in circulation and the demand deposits in banks2).3). The sum of currency in circulation with the public and the cash reserves held by banks4). The market value of the stocks held by all the holders excluding the promoters
Answer» NARROW Money is the SUM of CURRENCY in circulation and the demand DEPOSITS in banks.

Discussion

32.	Which among the following is an example of non-commercial bank?1). SIDBI (Small Industries Development Bank of India)2). NABARD (National Bank for Agriculture and Rural Development )3). EXIM (Export-Import Bank of India)4). NHB (National Housing Bank)
Answer» A non-commercial bank is commonly a bank that doesn’t offer ordinary retail banking services. They are sometimes CALLED private BANKS, or INVESTMENT banks. Examples: SIDBI, NABARD, EXIM and National Housing Bank.

Discussion

33.	When was Reserve Bank of India Established?1). 1 April 19352). 26 Jan 19503). 1 Jan 19484). 14 April 1948
Answer» The RESERVE BANK of India was established on April 1, 1935 It was established in accordance with the PROVISIONS of the Reserve Bank of India ACT, 1934. Initially Established in Kolkata but later transferred permanently to Mumbai (1937)

Discussion

34.	Debt Recovery Tribunals which were set up after the passing of Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993. This Act was amended in?1). 20162). 20143). 20154). 2017
Answer» To rejuvenate the DRTs include the RDBBFI amendment 2016. The amendment gives timelines for various steps in the adjudication PROCESS before the debt recovery TRIBUNALS. Time limit for filing of WRITTEN statements, passing of orders, appeals, etc. have been reduced The Act Empowers the Central Government to provide for uniform procedural rules for the proceedings in the Debts Recovery Tribunals and Appellate Tribunals. At present, there are 33 DRTs and 5 DRATs FUNCTIONING at various parts of the country.

Discussion

35.	Which of the following is defined as the loan for a senior citizen, who has a self-acquired or self-occupied home?1). Mortgage system2). Senior citizen loan3). Reverse Mortgage system4). Senior citizen capital loan
Answer» Reverse Mortgage system is DEFINED as the loan for a senior CITIZEN, who has a self-acquired or self-occupied HOME. It is designed for retired PEOPLE who are not able to support themselves but have assets in the form of house properties. In a Reverse Mortgage, a senior citizen mortgages his property to a lender (bank), which then makes PERIODIC payments to the borrower so that borrower can meet his monthly expenses.

Discussion

36.	The first bank of limited liability managed by Indians was ________.1). Bank of Rohilkhand2). Bank of Madras3). Alliance Bank of Simla4). Oudh Commercial Bank
Answer» Oudh Commercial Bank was established in 1881 in FAIZABAD which was the first commercial bank of limited liability. This bank was entirely MANAGED by Indian BOARD of Directors. It failed in 1958. It had no branches and was a small bank which only served local needs.

Discussion

37.	An account that a bank holds in a foreign country in another bank is known as _______.1). Escrow Account2). Cash Account3). Nostro Account4). Savings Account
Answer» Nostro Account is an account that a BANK holds in a foreign country in another bank and is usually USED for FACILITATING foreign exchange and TRADE transactions.

Discussion

38.	The maximum tenure of fixed deposit accounts in India can be –1). 5 years 2). 10 years 3). 15 years 4). 20 years
Answer» A FIXED DEPOSIT account is such that it GIVES a higher rate of interest than the regular savings account. A fixed deposit account can be opened for a MAXIMUM PERIOD of 10 years. It is a kind of term deposit that is payable on a fix maturity date.

Discussion

39.	In Indian banking system, the primarily liable on a cheque is the __________?1). Drawer2). Drawee3). Collection banker4). Paying banker
Answer» As PER the Negotiable INSTRUMENT Act: Drawer: Primarily LIABLE Drawee: Payment on demand Payee: Presentment of a cheque for payment WITHIN a reasonable TIME

39.

In Indian banking system, the primarily liable on a cheque is the __________?1). Drawer2). Drawee3). Collection banker4). Paying banker

Answer»

As PER the Negotiable INSTRUMENT Act:

Drawer: Primarily LIABLE
Drawee: Payment on demand
Payee: Presentment of a cheque for payment WITHIN a reasonable TIME

Discussion

40.	Which of the following statements are true in regards NBFC?1). A NBFC can accept demand deposits2). A NBFC can issue cheques3). Credit Guarantee Corporation is available to depositors of NBFCs4). A NBFC can extend loans and advances
Answer» NBFC’s lend and make investments and HENCE their activities are similar to that of banks; however there are a few differences as GIVEN below:$ i. NBFC cannot ACCEPT demand deposits;$ ii. NBFCS do not form part of the payment and settlement system and hence cannot issue cheques$ iii. Credit Guarantee Corporation is not available to DEPOSITORS of NBFCs, unlike in case of banks.$

40.

Which of the following statements are true in regards NBFC?1). A NBFC can accept demand deposits2). A NBFC can issue cheques3). Credit Guarantee Corporation is available to depositors of NBFCs4). A NBFC can extend loans and advances

Answer»

NBFC’s lend and make investments and HENCE their activities are similar to that of banks; however there are a few differences as GIVEN below:$

i. NBFC cannot ACCEPT demand deposits;$

ii. NBFCS do not form part of the payment and settlement system and hence cannot issue cheques$

iii. Credit Guarantee Corporation is not available to DEPOSITORS of NBFCs, unlike in case of banks.$

Discussion

41.	First bank to start non-UTI mutual fund in India?1). ICICI Bank2). HSBC Bank3). HDFC Bank4). SBI Bank
Answer» The STATE Bank of India established the FIRST non-UTI Mutual FUND, SBI Mutual Fund in NOVEMBER 1987.

Discussion

42.	Who serves as the chairperson of Financial Stability and Development Council (FSDC)?1). Prime Minister2). Chairman of SEBI3). Governor of RBI4). Union Finance Minister
Answer» Union Finance MINISTER serves as the chairperson of Financial Stability and Development Council (FSDC). The council DEALS with issues relating to financial stability, financial SECTOR development. It was formed on the recommendation of Raghuram RAJAN Committee in 2010.

Discussion

43.	1). Second Schedule of Reserve Bank of India Act, 1934.2). First Schedule of Reserve Bank of India Act, 1934.3). Second Schedule of Reserve Bank of India Act, 1935.4). First Schedule of Reserve Bank of India Act, 1935.
Answer» Scheduled Banks in India REFER to those banks which have been included in the Second SCHEDULE of RESERVE BANK of India Act, 1934. Banks not under this Schedule are CALLED Non-Scheduled Banks.

Discussion

44.	What is a systematically important NBFC?1). Any NBFCs whose asset size is of ₹ 1000 cr or more as per last audited balance sheet is called a systematically important NBFC2). Any NBFCs whose asset size is of ₹ 800 cr or more as per last audited balance sheet is called a systematically important NBFC3). Any NBFCs whose asset size is of ₹ 500 cr or more as per last audited balance sheet is called a systematically important NBFC4). Any NBFCs whose asset size is of ₹ 300 cr or more as per last audited balance sheet is called a systematically important NBFC
Answer» NBFC’s whose asset size is of ? 500 cr or more as per the last audited BALANCE sheet are CONSIDERED as systemically IMPORTANT NBFC’s. The logic for such CLASSIFICATION is that the activities of such NBFC’s will have a bearing on the financial stability of the overall economy.$

Discussion

45.	National income doesn’t include:1). Income for government expenditure2). Interest on unproductive national debt3). The payments by the household to firm the purchase of goods and services4). Undistributed profit
Answer» National INCOME doesn’t include INTEREST on UNPRODUCTIVE national debt.

Discussion

46.	1). Both II and III 2). Both I and III 3). Only III 4). Only II
Answer» The Cash Reserve Ratio is the AMOUNT of funds that the scheduled commercial banks are REQUIRED to maintain with the RBI and it is calculated as a percentage of the Net Demand and Time Liabilities of the BANK. There is no CEILING in fixing the CRR by the RBI. It is maintained by banks on the fortnightly average basis. The scheduled banks do not earn any interest on the amount maintained with the RBI as CRR.

Discussion

47.	1). As per the RBI, NEFT is a nation-wide payment system facilitating one-to-one funds transfer and a delay from the bank’s side on such transaction; banks are required to pay a prescribed penalty.2). Under this, individuals, firms and corporates having an account with any other bank branch can electronically transfer funds.3). There is a limit – on the maximum amount of funds that could be transferred using NEFT.4). For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled.
Answer» National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer. Key facts about NEFT scheme: Under this Scheme, individuals, firms and corporate can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country PARTICIPATING in the Scheme. The NEFT system also FACILITATES one-way cross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. The beneficiary would receive funds in Nepalese Rupees. In case of delay in NEFT, the banks have to follow the guidelines issued by RBI in 2010 that banks are required to pay a PENAL interest at the current RBI’s repo rate plus 2% for the delayed period, or until the DATE of REFUND, as per the case. At present, the repo rate is 6.50%$, so you should get 8.50% as penal interest on any delay.

47.

1). As per the RBI, NEFT is a nation-wide payment system facilitating one-to-one funds transfer and a delay from the bank’s side on such transaction; banks are required to pay a prescribed penalty.2). Under this, individuals, firms and corporates having an account with any other bank branch can electronically transfer funds.3). There is a limit – on the maximum amount of funds that could be transferred using NEFT.4). For being part of the NEFT funds transfer network, a bank branch has to be NEFT- enabled.

Answer»

National Electronic Funds Transfer (NEFT) is a nation-wide payment system facilitating one-to-one funds transfer.

Key facts about NEFT scheme:

Under this Scheme, individuals, firms and corporate can electronically transfer funds from any bank branch to any individual, firm or corporate having an account with any other bank branch in the country PARTICIPATING in the Scheme.
The NEFT system also FACILITATES one-way cross-border transfer of funds from India to Nepal. This is known as the Indo-Nepal Remittance Facility Scheme. The beneficiary would receive funds in Nepalese Rupees.
In case of delay in NEFT, the banks have to follow the guidelines issued by RBI in 2010 that banks are required to pay a PENAL interest at the current RBI’s repo rate plus 2% for the delayed period, or until the DATE of REFUND, as per the case. At present, the repo rate is 6.50%$, so you should get 8.50% as penal interest on any delay.

Discussion

48.	1). First2). Second3). Third4). Fourth
Answer» Scheduled Banks in India CONSTITUTE those banks which have been included in the Second SCHEDULE of Reserve Bank of India(RBI) Act, 1934. Scheduled banks INCLUDE all the commercial banks LIKE: Nationalised Foreign Development Co-operative and Regional rural banks.

Discussion

49.	1). End of tenth financial year2). End of sixth financial year3). End of fourteenth financial year4). End of fourth financial year
Answer» A subscriber is eligible to take a loan from PPF account between FOURTH and sixth year i.e. from the end of THIRD financial year TILL the end of the sixth financial year.

Discussion

50.	1). To generate funds for entrepreneurs2). To increase government tax base3). To promote the idea of Make in India4). To increase the penetration level of financial services to the remote areas of the country.
Answer» The idea of PAYMENTS Bank originated from the objective of achieving Financial Inclusion i.e. INCREASED access to financial services to the rural HOUSEHOLDS. With the introduction of Payments Bank, The real effect has come to remittances within the country. It has now BECOME easier for people to send money home to smaller towns and villages while WORKING in the city.

Discussion

Explore topic-wise InterviewSolutions in Current Affairs.

The Security Printing and Minting Corporation of India Limited was established in the year ________. 1). 20062). 20053). 20044). 2010

1). 500 Cr2). 400 Cr3). 300 Cr4). 200 Cr

LSR is a mismatch on bank’s balance sheets. What is the meaning of ‘L’ in ‘LSR’?1). Least2). Liquidity3). Legal4). Low

RBI issued short-term debt management instruments known as CMBs. What does ‘B’ stand for in the same?1). Bills2). Bonds3). Banks4). Branch

1). AC Shah Committee2). A Ghosh Committee3). Abid Hussain Committee4). Nachiket Mor Committee

Which of the following terms does NOT figure in FINO?1). Financial2). Inclusion3). Operation4). Network

1). Only I and II are correct2). Only III is correct3). Only II is correct4). All are correct

Market risks are most prominent for banks engaged in1). Retail banks2). Investment banks3). Commercial banks4). Central banks

What does second 'C' denotes in C A LC S?1). Capital Adequacy2). Clearence3). Customer4). Compliance

Ujjivan SFB has announced the launch of its overdraft facility for all MSEs with a turnover of Rs ________ lakhs or more.1). 102). 253). 504). 65

The minimum age required to open a saving bank account in India is:1). 1 month2). 6 months3). 5 years4). 8 years

1). Electronic Dealer Finance System2). Electronic Dealer Finance Service3). Economic Development Finance Service4). Electronic Disbursal Finance System

Which country introduced the concept of Self Help Group has been taken ?1). India2). Pakistan3). Nepal4). Bangladesh

Which among the following is/are the function(s) of the Reserve Bank of India?1). It is the banker to the banks as well as the government. 2). It issues license to banks to start operations in the country.3). It issues and manages currency in the country.4). It is the debt manager of the government

When a company or a person is unable to repay their outstanding debts, it is known as?1). NPA2). Bankruptcy3). Fraud4). Defaulter

Which of the following is/are NOT a feature of Wholesale Banking?1). Underwriting of shares and Merchant banking2). Managing Merger and acquisitions3). Accepting deposit4). Consultancy services

1). Only i2). Only i and iii3). Only ii and iii4). Only ii

Which of the following is a characteristic of commercial Bank?1). It is registered under schedule 2(e) of RBI Act 19342). It works for their own profit3). They indulge in customer dealings4). All of these

Union HRD Minister Prakash Javadekar has announced the "Swachh Campus rankings" under ________ different categories on 1 October 2018.1). 52). 63). 74). 8

Small Industries Development Bank of India (SIDBI) has charted a plan to promote micro-enterprises in various districts of India. How many districts has SIDBI selected for the purpose?1). 1052). 1003). 1104). 115

The main aim of the Asian Development Bank (ADB) is to promote social and economic development in Asia. Where is the headquarters of ADB located?1). Mumbai, India2). Tokyo, Japan3). Bangkok, Thailand4). Manila, Philippines

Who amongst the following is/are Deputy Governors of RBI?1). M.K. Jain2). B.P. Kanungo3). N S Vishwanathan4). Viral V Acharya

Which of the following banks was not nationalized in 1969?1). Punjab National Bank2). Bank of India3). State Bank of India4). Bank of Baroda

1). Only i,ii and iv2). Only i, iii and iv3). Only ii, v, vi4). Only ii, iv, vi and i

A type of debt instrument that is not secured by physical assets is known as?1). Collateral2). Debenture3). Bond4). Indenture

Which of the following bank cannot issue Priority Sector Lending Certificates (PSLC)? 1). Regional Rural Banks (RRBs)2). Local Area Banks (LABs)3). Small Finance Banks4). Payments Bank

________ provides services to organisations such as mortgage Brokers, large corporate clients, mid-sized companies,real estate developers & investors,international trade finance businesses,etc.1). UniversalBanking 2). Merchant Banking3). Retail Banking4). Islamic Banking

KYC guidelines have been issued by RBI under ________.1). Section 35A of Banking Regulation Act2). Section 35A Prevention of Money Laundering Act3). Section 35 of Banking Regulation Act4). Section 35B of RBI Act

In terms of call money, what does I in MIBOR stand for?1). International2). Interbank3). India4). Interstate

What is ‘Narrow Money’?1). The sum of currency in circulation and the demand deposits in banks2).3). The sum of currency in circulation with the public and the cash reserves held by banks4). The market value of the stocks held by all the holders excluding the promoters

Which among the following is an example of non-commercial bank?1). SIDBI (Small Industries Development Bank of India)2). NABARD (National Bank for Agriculture and Rural Development )3). EXIM (Export-Import Bank of India)4). NHB (National Housing Bank)

When was Reserve Bank of India Established?1). 1 April 19352). 26 Jan 19503). 1 Jan 19484). 14 April 1948

Debt Recovery Tribunals which were set up after the passing of Recovery of Debts due to Banks and Financial Institutions Act (RDBBFI), 1993. This Act was amended in?1). 20162). 20143). 20154). 2017

Which of the following is defined as the loan for a senior citizen, who has a self-acquired or self-occupied home?1). Mortgage system2). Senior citizen loan3). Reverse Mortgage system4). Senior citizen capital loan

The first bank of limited liability managed by Indians was ________.1). Bank of Rohilkhand2). Bank of Madras3). Alliance Bank of Simla4). Oudh Commercial Bank

An account that a bank holds in a foreign country in another bank is known as _______.1). Escrow Account2). Cash Account3). Nostro Account4). Savings Account

The maximum tenure of fixed deposit accounts in India can be –1). 5 years 2). 10 years 3). 15 years 4). 20 years

In Indian banking system, the primarily liable on a cheque is the __________?1). Drawer2). Drawee3). Collection banker4). Paying banker

Which of the following statements are true in regards NBFC?1). A NBFC can accept demand deposits2). A NBFC can issue cheques3). Credit Guarantee Corporation is available to depositors of NBFCs4). A NBFC can extend loans and advances

First bank to start non-UTI mutual fund in India?1). ICICI Bank2). HSBC Bank3). HDFC Bank4). SBI Bank

Who serves as the chairperson of Financial Stability and Development Council (FSDC)?1). Prime Minister2). Chairman of SEBI3). Governor of RBI4). Union Finance Minister

1). Second Schedule of Reserve Bank of India Act, 1934.2). First Schedule of Reserve Bank of India Act, 1934.3). Second Schedule of Reserve Bank of India Act, 1935.4). First Schedule of Reserve Bank of India Act, 1935.

National income doesn’t include:1). Income for government expenditure2). Interest on unproductive national debt3). The payments by the household to firm the purchase of goods and services4). Undistributed profit

1). Both II and III 2). Both I and III 3). Only III 4). Only II

1). First2). Second3). Third4). Fourth

1). End of tenth financial year2). End of sixth financial year3). End of fourteenth financial year4). End of fourth financial year

1). To generate funds for entrepreneurs2). To increase government tax base3). To promote the idea of Make in India4). To increase the penetration level of financial services to the remote areas of the country.