Banking Awareness Questions for RBI Grade-B Phase-1 Exam

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Banking-Awareness-Questions-for RBI-Grade-B-Phase-1-Exam

Just a few days are left for RBI Grade-B Phase-1 Exam. It is time to pace up your preparation of Banking Awareness for RBI Grade-B Officers. These Banking questions will also help you in preparing for other upcoming banking recruitment examination.

Q1. e-KYC is possible only for those who have _______
(a) PAN Card
(b) Driving License
(c) Ration Card
(d) Aadhaar Number
(e) None of the given options is true

S1. Ans.(d)
Sol. e-KYC is possible only for those who have Aadhaar numbers. While using e-KYC service, you have to authorise the Unique Identification Authority of India (UIDAI), by explicit consent, to release your identity/address through biometric authentication to the bank branches/business correspondent (BC).

Q2. ____________ is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routeing & merchant payments into one hood.
(a) NEFT
(b) RTGS
(c) NPCI
(d) BHIM
(e) UPI

S2. Ans.(e)
Sol. Unified Payments Interface (UPI) is a system that powers multiple bank accounts into a single mobile application (of any participating bank), merging several banking features, seamless fund routing & merchant payments into one hood. It also caters to the “Peer to Peer” collect request which can be scheduled and paid as per requirement and convenience.

Q3. Banks can not generally accept interest-free deposits. Which of the following is an exception to this rule?
(a) Current Account
(b) Savings Account of Minors
(b) Deposit from Minority groups
(c) BSBDA
(e) None of the given options is true

S3. Ans.(a)
Sol. Banks cannot accept interest-free deposits other than in current account.

Q4. Deposits under Foreign Currency Non-Resident (FCNR) scheme can be accepted for a minimum of-
(a) Six months
(b) Three months
(c) One year
(d) 15 days
(e) Five Years

S4. Ans.(c)
Sol. The deposits should be accepted under the Foreign Currency Non- Resident(FCNR) Scheme for the following maturity periods:
1. One year and above but less than two years
2. Two years and above but less than three years
3. Three years and above but less than four years
4. Four years and above but less than five years
5. Five years only

Q5. What is the meaning of a bond issued by an Indian company expressed in foreign currency, and the principal and interest in respect of which is payable in foreign currency? 
(a) ECB
(b) FCCBs
(c) Automatic Route
(d) FCNR
(e) None of the given options is true

S5. Ans.(b)
Sol. FCCBs mean a bond issued by an Indian company expressed in foreign currency and the principal and interest in respect of which is payable in foreign currency. The bonds are required to be issued in accordance with the scheme viz., "Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depositary Receipt Mechanism) Scheme, 1993”, and subscribed by a non-resident in foreign currency and convertible into ordinary shares of the issuing company in any manner, either in whole, or in part, on the basis of any equity related warrants attached to debt instruments.

Q6. Deposits under Foreign Currency Non-Resident (FCNR) scheme can be accepted for a maximum of-
(a) one year
(b) three year
(c) five year
(d) seven year
(e) nine year

S6. Ans.(c)
Sol. The deposits should be accepted under the Foreign Currency Non- Resident(FCNR) Scheme for the following maturity periods:
1. One year and above but less than two years
2. Two years and above but less than three years
3. Three years and above but less than four years
4. Four years and above but less than five years
5. Five years only

Q7. What is the full form of FCCB?
(a) Foreign Currency Convertible Bond
(b) Foreign Currency Credit Bond
(c) Financial Consortium and Credit Bureau
(d) Future Credit and Currency Bureau
(e) None of the given options is true

S7. Ans.(a)
Sol. FCCBs stands for foreign currency convertible bonds.

Q8. Which of the following institutions is responsible for the supervision of RRBs?
(a) RBI
(b) SEBI
(c) NABARD
(d) GOI
(e) Both (a) and (c)

S8. Ans.(e)
Sol. NABARD has been sharing with the Reserve Bank of India certain supervisory functions in respect of cooperative banks and Regional Rural Banks (RRBs).

Q9. 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

S9. Ans.(e)
Sol. Exchange rates allow you to determine how much of one currency you can exchange for another. For example, the dollar's exchange rate tells you how much a dollar is worth in a foreign currency, and vice versa.

Q10. 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

S10. 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.

Q11. On 07th October 2015, Ujjivan Financial Services Private Ltd has received an in-principle approval from the RBI to set up a small finance bank. Where is headquarter of Ujjivan Financial Services Private Ltd small finance bank?
(a) Kochin
(b) Jaipur
(c) Mumbai
(d) Chennai
(e) Bengaluru

S11. Ans.(e)
Sol. On October 7, 2015, Ujjivan Financial Services Private Ltd has received an in-principle approval from the RBI to set up a small finance bank ("SFB"). Bengaluru, Karnataka is the head office of Ujjivan Financial Services Private Ltd.

Q12. Name the India's first credit rating agency, is incorporated, promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions.
(a) CRISIL
(b) CIBIL
(c) ICRA
(d) All of the above
(e) None of the given options is true

S12. Ans.(a)
Sol. On 29th January 1987: CRISIL, India's first credit rating agency, is incorporated, promoted by the erstwhile ICICI Ltd, along with UTI and other financial institutions. Mr N Vaghul and Mr. Pradip Shah are CRISIL's first Chairman and Managing Director, respectively.

Q13. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in _________ by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional Investment Information and Credit Rating Agency.
(a) 2004
(b) 1999
(c) 1995
(d) 1987
(e) 1991

S13. Ans.(e)
Sol. ICRA Limited (formerly Investment Information and Credit Rating Agency of India Limited) was set up in 1991 by leading financial/investment institutions, commercial banks and financial services companies as an independent and professional Investment Information and Credit Rating Agency.

Q14. The largest shareholder of a Public Sector Banks (PSBs) is?
(a) RBI
(b) Government of India
(c) NABARD
(d) All of the Above
(e) Finance Ministry

S14. 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.

Q15. The Foreign Exchange of India is kept with-
(a) SBI
(b) ECGC
(c) RBI
(d) NABARD
(e) None of the given options is true

S15. Ans.(c)
Sol. Reserve Bank of India accumulates foreign currency reserves by purchasing from authorised 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.

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