Banking Awareness Questions for IBPS Clerk Mains 2017

Dear Aspirants,



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. Loan and Advances of a bank come under which of the following category?
(a) Assets
(b) Liabilities
(c) Deposits
(d) All of the Above
(e) None of the given options is true

S1. Ans.(a)
Sol. Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive economic value is considered an asset. Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive economic value is considered an asset.

Q2. RBI sold its stake in NABARD to the Government of India, which now holds _____ stake.
(a) Approx 65%
(b) Approx 70%
(c) Approx 95%
(d) Approx 99%
(e) Approx 24%

S2. Ans.(d)
Sol. RBI sold its stake in NABARD to the Government of India, which now holds approx 99% stake.

Q3. Which of the following is not available to depositors of NBFCs?
(a) Deposit Insurance facility
(b) Acquisition of shares
(c) Loans and Advances
(d) All of the Above
(e) None of the given options is true

S3. Ans.(a)
Sol. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in case of banks.

Q4. NBFCs include ______
(a) loan company
(b) investment company
(c) asset finance company
(d) All of the Above
(e) None of the given options is true

S4. Ans.(d)
Sol. NBFCs include a loan company, an investment company, asset finance company (i.e. a company conducting the business of equipment leasing or hire purchase finance) and Residuary Non-Banking Companies.

Q5. India Infrastructure Finance Company Ltd (IIFCL) is a wholly-owned ____________ company set up in 2006.
(a) NABARD
(b) SEBI
(c) RBI
(d) Finance Ministry
(e) Government of India

S5. Ans.(e)
Sol. IIFCL is a wholly-owned Government of India company set up in 2006 to provide long-term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.

Q6. NSDL is the first and largest depository in India, established in-
(a) August 2003
(b) August 1991
(c) August 1989
(d) August 1999
(e) August 1996

S6. Ans.(e)
Sol. NSDL, the first and largest depository in India, established in August 1996 and promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialised form in the Indian capital market.

Q7. A Public Provident Fund (PPF) account holder can deposit a maximum of-
(a) 1.5 Lakhs
(b) 2.5 Lakhs
(c) 1.0 Lakh
(d) 3.5 Lakhs
(e) 5.0 Lakhs

S7. Ans.(a)
Sol. A Public Provident Fund (PPF) account holder can deposit a maximum of Rs 1.5 lakhs in his/her PPF account.

Q8. Where is the headquarters of Paschim Banga Gramin Bank?
(a) Howrah, West Bengal
(b) Nagpur, Maharashtra
(c) Dumka, Jharkhand
(d) Bolangir, Odisha
(e) Bathinda, Punjab

S8. Ans.(a)
Sol. The headquarters of Paschim Banga Gramin Bank is Howrah, West Bengal.

Q9. National Securities Depository Limited is an Indian central securities depository based in _______
(a) New Delhi
(b) Chennai
(c) Hyderabad
(d) Mumbai
(e) Bengaluru

S9. Ans.(d)
Sol. National Securities Depository Limited is an Indian central securities depository based in Mumbai.

Q10. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in-
(a) 1999
(b) 1995
(c) 1991
(d) 1987
(e) 1982

S10. Ans.(d)
Sol. The Board of experts named the Board for Industrial and Financial Reconstruction (BIFR) was set up in January, 1987 and functional with effect from 15th May 1987. The Appellate Authority for Industrial and Financial Reconstruction (AAIRFR) was constituted in April 1987. Government companies were brought under the purview of SICA in 1991 when extensive changes were made in the Act including, inter-alia, changes in the criteria for determining industrial sickness.

Q11. Which committee has recommended the setting up of Special Tribunals to reduce the time required for settling cases and accepting the recommendations, DRTs were established?
(a) Kelkar committee
(b) Justice Reddy committee 
(c) Rangarajan Committee
(d) Sivaraman Committee
(e) Narasimham Committee

S11. Ans.(e)
Sol. Narasimham Committee Report I (1991) recommended the setting up of Special Tribunals to reduce the time required for settling cases. Accepting the recommendations, Debt Recovery Tribunals (DRTs) were established.

Q12. DRT has been constituted under Section 3 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993. DRT stands for-
(a) Debt Recovery Tribunals
(b) Demand Recovery Tribunals
(c) Deposit Recovery Tribunals
(d) Debt Refinance Tribunals
(e) Debt Recovery Treaty

S12. Ans.(a)
Sol. DRTs stands for Debt Recovery Tribunals.

Q13. What is the financial limit Under MUDRA's Tarun scheme?
(a) Rs. 40 lakh to Rs. 50 lakh 
(b) Rs. 30 lakh to Rs. 40 lakh 
(c) Rs. 20 lakh to Rs. 30 lakh 
(d) Rs. 10 lakh to Rs. 20 lakh 
(e) Rs. 5 lakh to Rs. 10 lakh

S13. Ans.(e)
Sol. Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products/schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth/development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to. The financial limit for these schemes is:-
(a) Shishu:- covering loans up to  50,000/-
(b) Kishor:- covering loans above  50,000/- and up to  5 lakh
(c) Tarun:- covering loans above  5 lakh to  10 lakh

Q14. Who can set up an SEZ? 
(a) Private sector 
(b) Public sector
(c) State government
(d) All of the above
(e) Only (a) and (b)

S14. Ans.(d)
Sol. Private sector, Public sector and State government can set up Special Economic Zones (SEZs).

Q15. Securitisation act 2002 is enables the banks to issue notices to defaulters who have to pay the debts within __________ days.
(a) 90 days
(b) 60 days
(c) 30 days
(d) 120 days
(e) None of the given options is true

S15. Ans.(b)
Sol. Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act 2002 is popularly known as Securitisation Act. This act enables the banks to issue notices to defaulters who have to pay the debts within 60 days. Once the notice is issued the borrower cannot sell or dispose the assets without the consent of the lender. The Securitisation Act further empowers the banks to take over the possession of the assets and management of the company. The lenders can recover the dues by selling the assets or changing the management of the firm. The Act also enables the establishment of Asset Reconstruction Companies for acquiring NPA.


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