Banking Awareness Questions for IBPS RRBs PO and Clerk Exam 2017

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Banking Quiz 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. ___________ 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 the 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. The concept of insuring deposits kept with banks received attention for the first time in the year ___________ after the banking crises in Bengal. 
(a) 1941
(b) 1933
(c) 1961
(d) 1948
(e) 1919

S6. Ans.(d)
Sol. The concept of insuring deposits kept with banks received attention for the first time in the year 1948 after the banking crises in Bengal. The question came up for reconsideration in the year 1949, but it was decided to hold it in abeyance till the Reserve Bank of India ensured adequate arrangements for inspection of banks. Subsequently, in the year 1950, the Rural Banking Enquiry Committee also supported the concept.

Q7. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961, and the Deposit Insurance Act, 1961 came into force on January 01st-
(a) 1962
(b) 1975
(c) 1956
(d) 1949
(e) 1935

S7. Ans.(a)
Sol. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961, and the Deposit Insurance Act, 1961 came into force on January 1, 1962. The Deposit Insurance Scheme was initially extended to functioning commercial banks only. This included the State Bank of India and its subsidiaries, other commercial banks and the branches of the foreign banks operating in India.

Q8. The Reserve Bank of India was promoted a public limited company on January 14th, 1971, named the CGCI. What was the meaning of first "C" in CGCI?
(a) Common
(b) Conclusion
(c) Corporation
(d) Concept
(e) Credit

S8. Ans.(e)
Sol. The Reserve Bank of India also promoted a public limited company on January 14, 1971, named the Credit Guarantee Corporation of India Ltd. (CGCI). The main thrust of the Credit Guarantee Schemes, introduced by the Credit Guarantee Corporation of India Ltd., was aimed at encouraging the commercial banks to cater to the credit needs of the hitherto neglected sectors, particularly the weaker sections of the society engaged in non-industrial activities, by providing guarantee cover to the loans and advances granted by the credit institutions to small and needy borrowers covered under the priority sector.

Q9. The DIC Bill was introduced in the Parliament on August 21st, 1961. What is the meaning of "D" in DIC?
(a) Distance
(b) Development
(c) Deposit
(d) Demand
(e) None of the given options is true

S9. Ans.(c)
Sol. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961, and the Deposit Insurance Act, 1961 came into force on January 1, 1962.

Q10. DICGC stands for- 
(a) Deposit Investment and Credit Guarantee Corporation 
(b) Deposit Insurance and Credit Guarantee Corporation
(c) Deposit Insurance and Credit Guarantee Company 
(d) Demand Insurance and Credit Guarantee Corporation 
(e) Deposit Installment and Credit Guarantee Corporation

S10. Ans.(b)
Sol. DICGC stands for Deposit Insurance and Credit Guarantee Corporation.

Q11. Which committee has recommended the setting up of Special Tribunals to reduce the time required for settling cases and accepting the recommendations, Debt Recovery Tribunals (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. The private sector, Public sector and State government can set up Special Economic Zones (SEZs).

Q15. Securitisation act 2002 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 of 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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