Banking Awareness Questions for IBPS Clerk Mains 2017

Dear Aspirants,

Banking Awareness Questions for IBPS Clerk Mains 2017

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

Q1. ___________ is vested with the responsibility of conducting monetary policy. 
(a) RBI
(b) SBI
(c) NABARD
(d) SIDBI
(e) Finance Ministry

S1. Ans.(a)
Sol. Monetary policy refers to the policy of the central bank with regard to the use of monetary instruments under its control to achieve the goals specified in the Act. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.

Q2. In which year the Reserve Bank of India (RBI) Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework?
(a) May 2013
(b) May 2014
(c) May 2015
(d) May 2016
(e) May 2012

S2. Ans.(d)
Sol. The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth. Price stability is a necessary precondition to sustainable growth. In May 2016, the Reserve Bank of India (RBI) Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework.

Q3. Which scheme/act has enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks?
(a) Reserve Bank of India Act, 1934
(b) Banking Regulation Act, 1949
(c) Securitization Act 2002
(d) FEMA 
(e) Banking Ombudsman Scheme

S3. Ans.(e)
Sol. The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

Q4. The Banking Ombudsman Scheme is introduced by RBI with effect from- 
(a) 1991
(b) 1995
(c) 1990
(d) 2002
(e) 2006

S4. Ans.(b)
Sol. The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

Q5. IBA adopts a consultative approach to give its views on any issue pertaining to banking sector. What is the meaning of "I" in IBA?
(a) International
(b) Institute
(c) Investment
(d) Indian
(e) Increase

S5. Ans.(d)
Sol. Indian Banks' Association (IBA) set up in 1946 with 22 members to discuss issues of common interests. Over the years, IBA emerged as the Voice of Indian Banking Industry.

Q6. Which Bank has launches 10-second paperless instant loan Scheme?
(a) HDFC
(b) SBI
(c) PNB
(d) IDBI
(e) ICICI

S6. Ans.(a)
Sol. HDFC Bank, India’s second-largest private sector lender has launched a 10-second paperless instant loan Scheme for its existing customers. The 10-second loan Scheme was launched as part of HDFC Bank’s digital banking platform GoDigital. With this, HDFC bank became first banking institution to completely automate the entire process of loan approval and disbursement.

Q7. Which among the following organisation to provide Rs 30,000 crore credit to farmers for irrigation?
(a) NABARD
(b) RBI
(c) SBI
(d) PNB
(e) SIDBI

S7. Ans.(a)
Sol. State-run National Bank for Agriculture and Rural Development (NABARD) has set a target of providing 30,000 crore rupees as credit to farmers for irrigational purpose. It was announced by Bank’s Chairman and Managing Director Dr. Harsh Kumar Bhanwala in Mumbai on the occasion of 34th Foundation Day of NABARD.

Q8. Which of the following bodies regulates the Regional Rural Banks?
(a) Union Government
(b) SBI
(c) RBI
(d) NABARD
(e) SIDBI

S8. Ans.(d)
Sol. RRBs are regulated by NABARD. Other banks are regulated by RBI directly.

Q9. Which among the following banks has launched the First Multi-Currency Contactless Card service in India?
(a) HDFC Bank
(b) Axis Bank
(c) State Bank of India
(d) Punjab National Bank
(e) ICICI Bank

S9. Ans.(b)
Sol. India’s third largest private sector lender, Axis Bank has launched the first Contactless Debit, Credit and Multi-Currency Forex Card in association with VISA payWave in the country. Axis Bank will offer a contactless debit/credit cards to its 1.7 million premium customers which also enables withdrawal of 15 currencies via Multi-Currency Forex facility. To facilitate contactless cards operations bank will upgrade 50,000, of its point of sale (PoS) machines across the country.

Q10. Name the organisation, which has allows Banks to tie up with insurers?
(a) IRDAI
(b) RBI
(c) SBI
(d) World Bank
(e) SEBI

S10. Ans.(a)
Sol. The Insurance Regulatory and Development Authority of India (IRDAI) has allowed banks to tie up with insurers. This decision was taken as part of the IRDAI’s new Bancassurance model guidelines which will be notified soon. Prior to this decision, banks were not allowed to have insurance agency tie-ups with more than one insurer. As per new decision banks can tie up with nine insurers from three segments viz. life, non–life and standalone health. It will not be binding on banks and they are free to take their call. Earlier, IRDAI had constituted a 7 member committee to study the reviewing of the existing architecture of the Banacassurance model.

Q11. An FVCI can invest in an Indian company engaged in-
(a) Biotechnology
(b) Dairy industry
(c) Production of bio-fuels
(d) IT related to hardware and software development
(e) All of the above

S11. Ans.(e)
Sol. An FVCI can invest in an Indian company engaged in:-
1. Biotechnology
2. IT related to hardware and software development
3. Nanotechnology
4. Seed research and development
5. Research and development of new chemical entities in pharmaceutical sector
6. Dairy industry
7. Poultry industry
8. Production of bio-fuels
9. Hotel-cum-convention centres with seating capacity of more than three thousand.
10. Infrastructure sector.

Q12. If the shares or convertible debentures are not issued within __________ days from the date of receipt of the inward remittance or date of debit to NRE/FCNR(B)/Escrow account, the amount shall be refunded. 
(a) 210 days
(b) 150 days
(c) 180 days
(d) 120 days
(e) 90 days

S12. Ans.(c)
Sol. If the shares or convertible debentures are not issued within 180 days from the date of receipt of the inward remittance or date of debit to NRE/ FCNR (B)/ Escrow account, the amount shall be refunded. Further, Reserve Bank may on an application made to it and for sufficient reasons permit an Indian Company to refund/ allot shares for the amount of consideration received towards issue of security if such amount is outstanding beyond the period of 180 days from the date of receipt.

Q13. FCCB is a type of corporate bond issued by an Indian company in an overseas market in a currency different from that of the issuer. FCCB stands for-
(a) Foreign Currency Convertible Board 
(b) Foreign Currency Convertible Banking 
(c) Foreign Currency Convertible Bond 
(d) Foreign Currency Convertible Base 
(e) Foreign Currency Convertible Basel

S13. Ans.(c)
Sol. A foreign currency convertible bond (FCCB) is a type of corporate bond issued by an Indian company in an overseas market in a currency different from that of the issuer. Investors have the option of redeeming their investment on maturity or converting the bonds into equity any time during the currency of the bond.

Q14. What is the meaning of "C" in ECB?
(a) Concourse
(b) Cashless
(c) Common
(d) Conclusion
(e) Commercial

S14. Ans.(e)
Sol. ECB stands for External Commercial Borrowings.

Q15. ECB can be raised under Track-II for general corporate purpose (including working capital). The minimum average maturity period will be-
(a) 05 years
(b) 10 years
(c) 15 years
(d) 20 years
(e) 25 years

S15. Ans.(b)
Sol. ECB can be raised under Track II for general corporate purpose (including working capital). The minimum average maturity period will be 10 years.

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