Banking Awareness Questions for IBPS RRBs Exam 2017

Dear Readers,

Banking-Awareness-Questions-for-IBPS-RRBs-Exam-2017

Just a few months are left for IBPS RRBs Mains It is time to pace up your preparation of Banking Awareness for IBPS RRBs PO and Clerk Mains. These Banking questions will also help you in preparing for other upcoming banking recruitment examination.

Q1. What is the maturity period for senior citizen savings scheme?
(a) 3 years
(b) 1 years
(c) 2 years
(d) 5 years
(e) 4 years

S1. Ans.(d)
Sol. There shall be only one deposit in the account in multiple of INR.1000/- maximum not exceeding INR 15 lakh in senior citizen savings scheme. Maturity period is 5 years.

Q2. The Overseas Principal should obtain necessary authorisation from the Reserve Bank of India under the provisions of which Act to commence/ operate a payment system?
(a) Reserve Bank of India Act–1934
(b) Banking Companies (Acquisition and Transfer of Undertakings) Act– 1970
(c) Banking Regulation (Companies) Rules, 1949
(d) Payment and Settlement Systems Act (PSS Act), 2007
(e) None of the given options is true

S2. Ans.(d)
Sol. The Overseas Principal should obtain necessary authorisation from the Department of Payment and Settlement Systems, Reserve Bank of India under the provisions of the Payment and Settlement Systems Act (PSS Act), 2007 to commence/operate a payment system.

Q3. ___________ is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India.
(a) MTSS
(b) NEFT
(c) RTGS
(d) NPCI
(e) SWIFT

S3. Ans.(a)
Sol. Money Transfer Service Scheme (MTSS) is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible.

Q4. A cap of ____________ has been placed on individual remittances under the MTSS?
(a) USD 2,500
(b) USD 5,000
(c) USD 3,500
(d) USD 1,000
(e) USD 1,500

S4. Ans.(a)
Sol. A cap of USD 2,500 has been placed on individual remittances under the Money Transfer Service Scheme (MTSS).

Q5. FATF stands for-
(a) Financial Action Trade Force
(b) Financial Asset Task Force
(c) Financial Asset Trade Force
(d) Financial Action Time Force
(e) Financial Action Task Force

S5. Ans.(e)
Sol. FATF stands for Financial Action Task Force.

Q6. How many remittances can be received by a single individual beneficiary under the scheme during a year?
(a) 40
(b) 45
(c) 55
(d) 35
(e) 30

S6. Ans.(e)
Sol. Thirty remittances can be received by a single individual beneficiary under the scheme during a calendar year.

Q7. ________ has come into being with a vision to make early home ownership a real possibility through the provision of Mortgage Guarantee.
(a) SIDBI
(b) ECGC
(c) IMGC
(d) NHB
(e) NABARD

S7. Ans.(c)
Sol. IMGC has come into being with a vision to make early home ownership a real possibility through the provision of Mortgage Guarantee. Mortgage Guarantee, a relatively new product in India, is actively used by lenders in developed markets as a tool to help promote and advance home ownership.

Q8. The national agency mandated to control, analyse and disseminate Suspicious Transaction Reports(STR), Cash Transaction Reports and counterfeit currency reports to various investigative agencies of the country after receiving it from banks and other financial intermediaries is-?
(a) National Payments Corporation of India (NPCI)
(b) Central Bureau of Investigation (CBI)
(c) Financial Intelligence Unit (FIU)
(d) Intelligence Bureau (IB)
(e) Central Intelligence Unit (CIU)

S8. Ans.(c)
Sol. The Financial Intelligence Unit (FIU) is the national agency mandated to collect, analyse and disseminate Suspicious Transaction Reports (STRs), Cash Transaction Reports and Counterfeit Currency Reports to various investigative agencies of the country after receiving it from banks and other financial intermediaries under a stipulated mechanism.

Q9. Currency Swap is an instrument to manage _______
(a) currency risk
(b) cash flows in different currency
(c) currency and interest rate risk
(d) interest rate risk
(e) All of the above

S9. Ans.(b)
Sol. A currency swap (or a cross currency swap) is a foreign exchange derivative between two institutions to exchange the principal and/or interest payments of a loan in one currency for equivalent amounts, in net present value terms, in another currency.

Q10. Which of the following agencies in India is responsible for computation of national income?
(a) NCAER
(b) CSO
(c) NSS
(d) RBI
(e) None of the given options is true

S10. Ans.(b)
Sol. The Central Statistical Office which is one of the two wings of the National Statistical Organisation (NSO) is responsible for coordination of statistical activities in the country and for evolving and maintaining statistical standards. Its activities include the compilation of National Accounts.

Q11. SEPA Stands for-
(a) Scottish Environment Protection Agency
(b) Single Euro Payments Area
(c) Scottish Environment Protection Area
(d) Single Euro Payments Agency
(e) None of the given options is true

S11. Ans.(b)
Sol. The Single Euro Payments Area (SEPA) is a payment-integration initiative of the European Union for simplification of bank transfers denominated in euro.

Q12. The Definition of ‘Banking’ is given in-
(a) Negotiable Instrument Act, 1881
(b) RBI Act, 1934
(c) The Banking Regulation Act, 1949
(d) Indian Contract Act, 1872
(e) None of the given options is true

S12. Ans.(c)
Sol. As per Section 5(b) of the Banking Regulation Act, 1949, “banking” means the accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdrawable by cheque, draft, order or otherwise.

Q13. Which of the following is governed by the provisions of Section 42 (1) of the Reserve Bank of India Act, 1934?
(a) Bank rate
(b) Reverse Repo Rate
(c) SLR
(d) CRR
(e) MSF

S13. Ans.(d)
Sol. CRR is governed by the provisions of Section 42 (1) of the Reserve Bank of India Act, 1934.

Q14. Spurious coins detected at the counter are sent to-
(a) RBI
(b) GOI
(c) IBRD
(d) Mint
(e) Finance Ministry

S14. Ans.(d)
Sol. when Spurious coins tendered over the counter, it should be cut and handed over to the tenderer. If the tenderer disputes it, the coins should be sent to the mint at his cost, for examination.

Q15. National Sample Survey Organisation (NSSO) is an organisation under the-
(a) Ministry of Finance
(b) Ministry of Rural Development
(c) Ministry of Commerce and Industry
(d) Ministry of Electronics and Information Technology
(e) Ministry of Statistics and Programme Implementation

S15. Ans.(e)
Sol. The National Sample Survey Organisation (NSSO), now known as National Sample Survey Office, is an organisation under the Ministry of Statistics and Programme Implementation of the Government of India. It is the largest organisation in India conducting regular socio-economic surveys.

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