Banking Awareness Questions for IBPS RRBs PO and Clerk Exam 2017

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Banking Quiz 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. 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 authorization 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 authorization 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. Which of the following is a receipt, declaring ownership of shares of a foreign company and can be listed in India and traded in rupees?
(a) ADR
(b) GDR
(c) IDR
(d) EDR
(e) None of the given options is true

S6. Ans.(c)
Sol. An IDR (Indian Depository Receipts)is a receipt, declaring ownership of shares of a foreign company. These receipts can be listed in India and traded in rupees.

Q7. What is the term for a bank without any branch network that offers its services remotely?
(a) Internet only Banks
(b) Direct Bank
(c) Lending Institution
(d) Indirect Bank
(e) Online Bank

S7. Ans.(b)
Sol. A direct bank is a bank without any branch network that offers its services remotely via online banking and telephone banking and may also provide access via ATMs (often through interbank network alliances), mail and mobile. By eliminating the costs associated with bank branches, direct banks can make significant savings which they may pass on to clients via higher interest rates or lower service charges.

Q8. The opening of branches by banks is governed by the provisions of Section _______ of the Banking Regulation Act, 1949. 
(a) Section 44
(b) Section 18
(c) Section 27
(d) Section 32
(e) Section 23

S8. Ans.(e)
Sol. The opening of branches by banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot open a new place of business in India or abroad or change otherwise than within the same city, town or village, the location of the existing place of business without the prior approval of the Reserve Bank of India (RBI). Thus, it is mandatory for RRBs to seek prior approval/licence from Rural Planning and Credit Department (RPCD) of RBI before the opening of new branches/offices.

Q9. For expanding access to banking services, the RBI has advised banks to open branches with minimum infrastructure support of 8 to 10BC units at a reasonable 3-4km. Such branches are known as _______
(a) White Label ATMs
(b) Ultra Small Branches
(c) Banking Kiosks
(d) CBS Terminals
(e) ICT Hubs

S9. Ans.(b)
Sol. Ultra Small Branches may be set up between the base branch and BC locations so as to provide support to about 8-10 BC Units at a reasonable distance of 3-4 kilometres. These could be either newly set up or by conversion of the BC outlets. Such Ultra Small Branches should have minimum infrastructures such as a Core Banking Solution (CBS) terminal linked to a pass book printer and a safe for cash retention for operating large customer transaction and would have to be managed full time by bank officers/employees.

Q10. Which among the following conditions, Regional Rural Banks (RRBs) should fulfil to become eligible to open new branch/branches?
(a) No default in maintenance of SLR and CRR during the last two years
(b) Operational profits are being made
(c) Net worth shows improvement
(d) Net NPA ratio does not exceed 8 per cent
(e) All of the above conditions should fulfil by RRBs

S10. Ans.(e)
Sol. RRBs should fulfil the following conditions, to become eligible to open new branch/es:
i. No default in maintenance of SLR and CRR during the last two years;
ii. Operational profits are being made;
iii. Net worth shows improvement;
iv. Net NPA ratio does not exceed 8 per cent.

Q11. The largest shareholder of a public sector bank is-
(a) RBI
(b) Government of India
(c) NABARD
(d) All of the Above
(e) None of the given options is true

S11. 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.

Q12. Which of the following works is/are done by Credit Information Companies?
(a) Collecting records of an individual’s payments pertaining to loans
(b) Maintaining records of an individual’s payments pertaining to credit cards
(c) Creating Credit Information Reports
(d) All of the Above
(e) None of the given options is true

S12. Ans.(d)
Sol. Credit Information Companies collects and maintains records of an individual‘s payments pertaining to loans and credit cards. These records are submitted to Credit Information Companies by banks and other lenders, on a monthly basis. This information is then used to create Credit Information Reports (CIR) and credit scores which are provided to lenders in order to help evaluate and approve loan applications.

Q13. By which rate is the domestic current rate of currency converted into foreign currency?
(a) Bank Rate
(b) CRR
(c) Stock Exchange Rate
(d) Repo Rate
(e) Exchange Rate

S13. Ans.(e)
Sol. An exchange rate- Between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency.

Q14. The Foreign exchange of India is kept with _________
(a) SBI
(b) ECGC
(c) RBI
(d) NABARD
(e) SEBI

S14. 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.

Q15. 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

S15. 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.

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