Banking Awareness Questions for IBPS RRBs PO and Clerk Exam 2017

Dear Readers,

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. Which of the following types of cards is free from credit risk?
(a) Credit card
(b) Debit Card
(c) Charge Cards
(d) All of the above
(e) Both (c) and (d)

S1. Ans.(b)
Sol. A debit card a safe, convenient, risk-free alternative to cash and has no credit risks attached.

Q2. A type of economy that still uses various means of social support, is called-
(a) Capitalist Economy
(b) Mixed Economy
(c) Socialist Economy
(d) Traditional Economy
(e) None of the given options is true

S2. Ans.(d)
Sol. Definition of the traditional economy: A type of economy that still uses various means of social support. Some feel that this may be out of date and thus refer to it as a traditional economy.

Q3. In the field of banking, what does ADF stand for?
(a) Additional Dearness Allowance
(b) Automated Data Flow
(c) Additional Deposit Allowance
(d) Automated Deposit Allowance
(e) None of the given options is true

S3. Ans.(b)
Sol. The Automated Data Flow (ADF) is a unique initiation by RBI aimed at the purpose of meeting the needs for the accurate and consistent flow of data. Automated Data Flow ensures that the data submitted from the banks to Reserve Bank of India is correct and consistent without any kind of manual intervention.

Q4. What is the duration of Public Provident Fund (PPF) account?
(a) 3 years
(b) 5 years
(c) 9 years
(d) 15 years
(e) 18 years

S4. Ans.(d)
Sol. A PPF account matures in 15 years, but you can extend the tenure in blocks of five years after maturity. The balance continues to earn interest at the normal rate. The minimum investment of Rs 500 has to be maintained even for accounts extended beyond 15 years.

Q5. Under which Act are the KYC norms implemented-
(a) SEBI Act, 1992
(b) Foreign Contribution and Regulation Act, 1976
(c) Prevention of Money laundering Act, 2002
(d) Banking Regulation Act, 1949
(e) None of the given options is true

S5. Ans.(c)
Sol. KYC guidelines/instructions are issued under Prevention of Money laundering Act PMLA, 2002.

Q6. 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

S6. 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.

Q7. 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

S7. 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 withdraw-able by cheque, draft, order or otherwise.

Q8. 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

S8. Ans.(d)
Sol. CRR is governed by the provisions of Section 42 (1) of the Reserve Bank of India Act, 1934.

Q9. Spurious coins detected at the counter are sent to-
(a) RBI
(b) GOI
(c) IBRD
(d) Mint
(e) Finance Ministry

S9. 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.

Q10. National Sample Survey Organisation (NSSO) is an organization 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

S10. Ans.(e)
Sol. The National Sample Survey Organisation (NSSO), now known as National Sample Survey Office, is an organization 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.

Q11. The Reserve Bank of India (RBI) has granted “in-principle” approval to the ________  applicants to set up small finance banks under the “Guidelines for Licensing of Small Finance Banks?
(a) 11
(b) 12
(c) 13
(d) 10
(e) 15

S11. Ans.(d)
Sol. The Reserve Bank of India (RBI) has decided to grant “in-principle” approval to the following 10 applicants to set up small finance banks under the “Guidelines for Licensing of Small Finance Banks in the private sector” (Guidelines) issued on November 27, 2014.
Names of selected applicants
1. Au Financiers (India) Ltd., Jaipur
2. Capital Local Area Bank Ltd., Jalandhar
3. Disha Microfin Private Ltd., Ahmedabad
4. Equitas Holdings P Limited, Chennai
5. ESAF Microfinance and Investments Private Ltd., Chennai
6. Janalakshmi Financial Services Private Limited, Bengaluru
7. RGVN (North East) Microfinance Limited, Guwahati
8. Suryoday Micro Finance Private Ltd., Navi Mumbai
9. Ujjivan Financial Services Private Ltd., Bengaluru
10. Utkarsh Micro Finance Private Ltd., Varanasi

Q12. The minimum paid-up equity capital for small finance banks shall be----------
(a) Rs. 100 crore
(b) Rs. 200 crore
(c) Rs. 300 crore
(d) Rs. 400 crore
(e) Rs. 500 crore

S12. Ans.(a)
Sol. The minimum paid-up equity capital for small finance banks shall be Rs. 100 crore.

Q13. Reserve Bank of India has granted the in-principle licence for small finance banks. The in-principle approval granted by RBI will be valid for a period of ________ months.
(a) 24 months
(b) 10 months
(c) 18 months
(d) 50 months
(e) 12 months

S13. Ans.(c)
Sol. Reserve Bank of India has granted the in-principle licence for small finance banks to ten entities. The in-principle approval granted by RBI will be valid for a period of 18 months.

Q14. Where is the headquarter of AU Small Finance Bank?
(a) Jalandhar, Punjab
(b) Ahmedabad, Gujarat
(c) Guwahati, Assam
(d) Bengaluru, Karnataka
(e) Jaipur, Rajasthan

S14. Ans.(e)
Sol. Jaipur, Rajasthan is headquartered of AU Small Finance Bank.

Q15. RBI was granted a licence to small Finance Banks for the commencement of banking business under Section ______ of the Banking Regulation Act, 1949.
(a) Section 38(3)
(b) Section 22(1)
(c) Section 47(4)
(d) Section 12(2)
(e) Section 27(5)

S15. Ans.(b)
Sol. RBI was granted a licence to small Finance Banks for the commencement of banking business under Section 22(1) of the Banking Regulation Act, 1949.

You may also like to Read:



Print Friendly and PDF