Banking Awareness Questions for IBPS RRBs PO and Clerk Exam 2017

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Banking-Awareness-Questions-for-IBPS-RRBs-Exam-2017
Banking Awareness for IBPS 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 RRB PO and Clerk Mains. These Banking questions will also help you in preparing for other upcoming banking recruitment examination.

Q1. Fiscal policy is concerned with which of the following?
(a) Public Revenue and Expenditure
(b) Issue of Currency
(c) Export Import
(d) Population Control
(e) Education for all

S1. Ans.(a)
Sol. Fiscal policy is the policy relating to government revenues from taxes and expenditure on various projects. Monetary Policy, on the other hand, is mainly concerned with the flow of money in the economy.

Q2. In which of the following types of banking, there is a direct execution of the transaction between a bank and its consumers?
(a) Retail Banking
(b) Universal Banking
(c) Virtual Banking
(d) Unit Banking
(e) None of the given options is true

S2. Ans.(a)
Sol. Retail banking also known as Consumer Banking is the provision of services by a bank to individual consumers, rather than to companies, corporations or other banks. Services offered include savings and transactional accounts, mortgages, personal loans, debit cards, and credit cards.

Q3. Loans against the security of shares, debentures and bonds should not exceed the limit of Rupees ____________ per individual if the securities are held in physical form. 
(a) two lakhs
(b) five lakhs
(c) ten lakhs
(d) fifteen lakhs
(e) twenty lakhs

S3. Ans.(c)
Sol. Loans against the security of shares, debentures and bonds should not exceed the limit of Rupees ten lakhs per individual if the securities are held in physical form and Rupees twenty lakhs per individual if the securities are held in dematerialised form. Such loans are meant for genuine individual investors, and banks should not support collusive action by a large group of individuals belonging to the same corporate or their inter-connected entities to take multiple loans in order to support particular scrip or stock-broking activities of the connected firms.Such finance should be reckoned as an exposure to capital market.

Q4. In case of failed ATM transactions, if the amount is not credited to customer’s account within 7 working days from the date of receipt of the complaint. Banks have to pay compensation at the rate of Rs.________ per day.
(a) 150
(b) 200
(c) 100
(d) 10
(e) 50

S4. Ans.(c)
Sol. Effective from July 1, 2011, banks have to pay compensation of Rs. 100/- per day for delays in re-crediting the amount beyond 7 working days from the date of receipt of the complaint about failed ATM transactions. The compensation has to be credited to the account of the customer without any claim being made by the customer. If the complaint is not lodged within 30 days of the transaction, the customer is not entitled to any compensation for delay in resolving his / her complaint.

Q5. Which of the following is known as “Demat” account?
(a) Account in which shares are held in electronic form
(b) Account opened with zero balance
(c) Account allowed to be operated by guardian of minor
(d) Account operated by business correspondents in rural centres.
(e) None of the given options is true

S5. Ans.(a)
Sol. A Dematerialized account (Demat Account) is opened by the investor while registering with an investment broker (or sub-broker). The account in which shares are held in electronic form is known as the Dematerialized account.

Q6. On 07th October 2015, Ujjivan Financial Services Private Ltd has received an in-principle approval from the RBI to set up a small finance bank. Where is headquarter of Ujjivan Financial Services Private Ltd small finance bank?
(a) Kochin
(b) Jaipur
(c) Mumbai
(d) Chennai
(e) Bengaluru

S6. Ans.(e)
Sol. On October 7, 2015, Ujjivan Financial Services Private Ltd has received an in-principle approval from the RBI to set up a small finance bank ("SFB"). Bengaluru, Karnataka is the head office of Ujjivan Financial Services Private Ltd.

Q7. Name India's first credit rating agency, is incorporated, promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions.
(a) CRISIL
(b) CIBIL
(c) ICRA
(d) All of the above
(e) None of the given options is true

S7. Ans.(a)
Sol. On 29th January 1987: CRISIL, India's first credit rating agency, is incorporated, promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions. Mr N Vaghul and Mr Pradip Shah are CRISIL's first Chairman and Managing Director, respectively.

Q8. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in _________ by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional Investment Information and Credit Rating Agency.
(a) 2004
(b) 1999
(c) 1995
(d) 1987
(e) 1991

S8. Ans.(e)
Sol. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional investment Information and Credit Rating Agency.

Q9. The largest shareholder of a Public Sector Banks (PSBs) is?
(a) RBI
(b) Government of India
(c) NABARD
(d) All of the Above
(e) Finance Ministry

S9. Ans.(b)
Sol. Public Sector Banks (PSBs) are banks where a majority stake (i.e. more than 50%) is held by a government. The shares of these banks are listed on stock exchanges.

Q10. The Foreign exchange of India is kept with-
(a) SBI
(b) ECGC
(c) RBI
(d) NABARD
(e) None of the given options is true

S10. Ans.(c)
Sol. Reserve Bank of India accumulates foreign currency reserves by purchasing from authorized dealers in open market operations. Foreign exchange reserves of India act as a cushion against rupee volatility once global interest rates start rising. The Foreign exchange reserves of India consists of below four categories. (a) Foreign Currency Assets
(b) Gold (c) SDRs (d) Reserve Tranche Position in the IMF.

Q11. The foreign shareholding in the small finance bank would be as per the FDI policy for _______________ as amended from time to time.
(a) Private Sector Banks
(b) Public Sector Banks 
(c) Foreign Sector Banks 
(d) Regional Rural Banks
(e) All of the above

S11. Ans.(a)
Sol. The foreign shareholding in the small finance bank would be as per the Foreign Direct Investment (FDI) policy for private sector banks as amended from time to time.

Q12. The promoter's minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be ---------?
(a) 50 per cent
(b) 40 per cent
(c) 60 per cent
(d) 30 per cent
(e) 20 per cent

S12. Ans.(b)
Sol. 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 per cent within 12 years from the date of commencement of business of the bank.

Q13. Small Finance Banks will be required to extend ________ of its ANBC to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.
(a) 55%
(b) 35%
(c) 75%
(d) 50%
(e) 10%

S13. Ans.(c)
Sol. The small finance banks will be required to extend 75 per cent of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.

Q14. The small finance bank will be subject to all prudential norms and regulations of RBI as applicable to existing commercial banks including the requirement of maintenance of CRR and SLR. What is the present rate of SLR?
(a) 20.75 per cent
(b) 19.75 per cent
(c) 20.25 per cent
(d) 20.00 per cent
(e) 21.25 per cent

S14. Ans.(d)
Sol. The small finance bank will be subject to all prudential norms and regulations of RBI as applicable to existing commercial banks including the requirement of maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR). No forbearance would be provided for complying with the statutory provisions. The present rate of SLR is 20.00 per cent.

Q15. FDI is an investment made by a company or individual in one country in business interests in another country. FDI stands for-
(a) Foreign Direct Industries
(b) Fully Direct Investment
(c) Foreign Department Investment
(d) Foreign Direct Installment
(e) Foreign Direct Investment

S15. Ans.(e)
Sol. Foreign direct investment (FDI) is an investment made by a company or individual in one country in business interests in another country, in the form of either establishing business operations or acquiring business assets in the other country, such as ownership or controlling interest in a foreign company.


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