Banking Awareness Questions For NICL AO Mains Exam 2017

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

Q1. In terms of Section ________ of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance and other banking operations, including the management of the public debt of the Union.
(a) section 16
(b) section 22
(c) section 32
(d) section 20
(e) section 25

S1. Ans.(d)
Sol. In terms of Section 20 of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance and other banking operations, including the management of the public debt of the Union. Further, as per Section 21 of the said Act, RBI has the right to transact Government business of the Union in India.

Q2. DGBA is responsible for discharging certain core traditional central banking functions, viz., acting as bankers to the Government and banks and managing public debt of both, central and state governments. DGBA stands for-
(a) Department of Government and Bank Accounts
(b) Division of Government and Bank Accounts
(c) District of Government and Bank Accounts
(d) Department of Government and Bank Agency
(e) Department of Government and Bank Association

S2. Ans.(a)
Sol. The Department of Government and Bank Accounts(DGBA) is responsible for discharging certain core traditional central banking functions, viz., acting as bankers to the Government and banks and managing public debt of both, central and state governments. It is also responsible for maintenance of the Reserve Bank's internal accounts and compilation of its weekly and annual accounts.

Q3. In how many divisions DGBA is divided at Central Office?
(a) one 
(b) two
(c) three
(d) four
(e) five

S3. Ans.(d)
Sol. At Central Office, DGBA is divided into four divisions.
(a) Bank Accounts Division
(b) Central Debt Division
(c) Government Accounts Division
(d) Central Accounts Section, Nagpur

Q4. Reserve Bank of India maintains the Principal Accounts of Central as well as State Governments at its Central Accounts Section in-  
(a) Mumbai
(b) Nagpur
(c) Pune
(d) Kolkata
(e) New Delhi

S4. Ans.(b)
Sol. Reserve Bank of India maintains the Principal Accounts of Central as well as State Governments at its Central Accounts Section, Nagpur. It has put in place a well-structured arrangement for revenue collection as well as payments on behalf of Government across the country. A network comprising the Public Accounts Departments of RBI and branches of Agency Banks appointed under Section 45 of the RBI Act carry out the Govt. transactions. At present all the public sector banks and three private sector banks viz. ICICI Bank Ltd., HDFC Bank Ltd. and Axis Bank Ltd. act as RBI's agents. Only authorised branches of Agency banks can conduct Govt. business.

Q5. OLTAS is a system introduced in _________ for collection, accounting and reporting of the receipts and payments of Direct Taxes on-line through a network of bank branches.
(a) November 1999
(b) January 2001
(c) April 2004
(d) July 2005
(e) September 2010

S5. Ans.(c)
Sol. OLTAS is a system introduced in April 2004 for collection, accounting and reporting of the receipts and payments of Direct Taxes on-line through a network of bank branches. The tax payers’ data flow from banks directly to Tax Information Network (TIN) maintained by National Securities Depository Ltd.

Q6. OLTAS stands for-
(a) On-line Transaction Accounting System 
(b) On-line Tax Amounting System 
(c) On-line Tax Accounting Service
(d) On-line Time Accounting System 
(e) On-line Tax Accounting System

S6. Ans.(e)
Sol. OLTAS stands for On-line Tax Accounting System.

Q7. The Asian Clearing Union (ACU) was established in-
(a) 1994
(b) 1984
(c) 1974
(d) 1964
(e) 1954

S7. Ans.(c)
Sol. The ACU was established in December 1974 when the countries in the region were facing settlement difficulties, mainly due to resource constraints. The ACU started its operations a year later in November 1975. Over the years, the ACU has displayed a sense of true commitment, consolidated and nurtured throughout its operations.

Q8. Where is the Secretariat office of Asian Clearing Union (ACU)?
(a) Beijing, China
(b) Kathmandu, Nepal
(c) New Delhi, India
(d) Tehran, Iran
(e) Dhaka, Bangladesh

S8. Ans.(d)
Sol. Tehran, Iran is the Secretariat office of Asian Clearing Union (ACU).

Q9. Which among the following countries are not the members of the Asian Clearing Union (ACU)?
(a) Bangladesh
(b) India
(c) Maldives
(d) China
(e) Sri Lanka

S9. Ans.(d)
Sol. The Central Banks and the Monetary Authorities of Bangladesh, Bhutan, India, Iran, Maldives, Myanmar, Nepal, Pakistan and Sri Lanka are currently the members of the Asian Clearing Union (ACU).

Q10. FVCI which has obtained registration under the Securities and Exchange Board of India (FVCI) Regulations, 2000. FVCI stands for- 
(a) Foreign Venue Capital Investors
(b) Foreign Venture Custody Investors
(c) Foreign Venture Capital Investors
(d) Foreign Venture Capital Installment
(e) Foreign Venture Capital Industry

S10. Ans.(c)
Sol. Investment in India by Foreign Venture Capital Investors (FVCI), registered with SEBI, is governed by the provisions of Schedule 6 of the Principal Regulations.

Q11. An FVCI can invest in an Indian company engaged in-
(a) Biotechnology
(b) Dairy industry
(c) Production of biofuels
(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 biofuels
9. Hotel-cum-convention centres with the 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 the 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 the 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 the general corporate purpose (including working capital). The minimum average maturity period will be 10 years.

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