Banking Awareness Question for SBI PO

1.    Recently which among the following panel recommends one-licence policy for all banks irrespective
of the ownership pattern?
Nachiket Mor
Arvind Mayaram
Rajiv Takru
C Rangarajan
P J Nayak

2.    As per the guidelines issued by the
RBI, minors above ____ years of age have been allowed to open and operate
independently savings bank account and use other facilities like ATM and cheque books?
(1) 10 Years
(2) 14 years
(3) 8 years
(4) 15 years
(5) None of these
3.    What is the name of
the India’s own card payment system that has been dedicated to the nation
recently by President Pranab Mukherjee?
(1) AtmCard
(5) None
of these
4.    On 20 March 2014, RBI has proposed to
setup of a Trade Receivables and Credit Exchange for financing (TCE) to
1) Exporters of Iron
2) Importers of Gold
3) Foreign Exchange
4) Bankers and Pawn
5) Micro, Small and Medium
Enterprises (MSMEs)
5.    RBI has
introduced “Marginal Standing Facility” with the objective of: 

(1) Controlling Inflation
(2) Containing instability in long term inter-bank rates
(3) Containing instability in the overnight inter-bank rates
(4) All of the above
(5) None of these
6.    Which of the
following statements is incorrect regarding RTGS system?

(1) The transactions take place in real time
(2) The system operates on DNS (Deferred Net Settlement) basis
(3) The minimum amount that can be remitted is Rs. 2 lakh
(4) Service charges for RTGS transactions vary from one bank to another
(5) None of these
7.    A bank draft
can be defined as a/an

(1) Letter from commercial bank
(2) Cheque drawn on the bank itself
(3) Direction to a banker to collect a customer’s debt
(4) Instruction to dishonour a stop payment
(5) None of these
8.    Recently RBI pegged 2014-15 GDP growth
at a central estimate of _____?
(1) 6%                               (2) 6.4%
(3) 5.5%                            (4)
(5) 5%
9.    Examine the following with respect to
Exchange Earner’s Foreign Currency Account (EEFC):
(A) It is a facility
provided to the foreign exchange earner (individual or company)
(B) The account holders
are entitled to get only 50 percent of their foreign exchange earnings  credited to the account
(C) It can be held only in
the form of a current with no interest payable on it
Which of the above
statements is/are correct?
(1) All the above                            (2)
Only A
(3) Only B                                     (4) Only A & C
(5) Only B & C
10.  As per the provision in the new
Companies Act, Non-Banking Finance companies (NBFCs) have to maintain what per
cent of the monies in low-interest securities or SLR-backed instruments?
1) 5 per cent
2) 10 per cent
3) 15 per cent
4) 20 per cent
5) 25 per cent
11.  Which of the
following interest rates signifies RBI’s long term stance of monetary policy?

(1) Repo Rate    
(2) CRR    
(3) Bank Rate
(4) Reserve Repo Rate
(5) None of these
12.  When RBI
sells government securities, its result is that
(1) The liquidity in the banking system increases
(2) The liquidity in the banking system remains unchanged
(3) The liquidity in the banking system gets diminished
(4) None of the above
(5) None of these

Explanations of some Qs:

1. Reserve Bank of India’s P J Nayak panel report calls for single
bank licencing regime. The report on banking governance of bank boards, headed
by ex-chairman of Axis Bank P J Nayak, said the one-licence regulatory regime
for banks with broad-ranging businesses would also not preclude RBI issuing
niche licences under other more narrowly defined, licensing regimes, if it were
to choose to do so. 

3. The new payment network  Rupay developed by the National Payments Corporation of India (NPCI), a not-for-profit company envisioned by the Reserve Bank of India (RBI) and created by the banking industry, covers all the automated teller machines (ATMs) and most of the retail and e-commerce platforms.
RuPay is the coinage of two terms Rupee and Payment.

The RBI has proposed setting up of a trade receivables and credit
exchange (TCE) for financing micro, small and medium enterprises (MSMEs).

The proposed model outlines two stages for trade receivables, the primary
segment where MSME bills are dematerialised and discounted through the
electronic platform through the mechanism of reverse factoring and the
secondary market segment where the already factored or discounted invoices are
further traded.
5. Under the facility, the eligible entities can avail overnight, up to one per cent of their
respective Net Demand and Time Liabilities (NDTL) outstanding at the end of the
second preceding fortnight
12. OMOs are the market operations conducted by the Reserve Bank of India by
way of sale/ purchase of Government securities to/ from the market with an
objective to adjust the rupee liquidity conditions in the market on a durable

When the RBI feels there is excess liquidity in the market, it resorts
to sale of securities thereby sucking out the rupee liquidity

Similarly, when
the liquidity conditions are tight, the RBI will buy securities from the
market, thereby releasing liquidity into the market.