The Banking Awareness section constitutes a major part of a competitive examination and needs your undivided attention. With the increased competition in the field of Banking examinations, it has now become very important to cover up all the sections efficiently.

Banking Affairs 01st October 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 01st October 2020 covering the following topics: NSDP, Asset Reconstruction Company, NBFCs, India Infrastructure Finance Company.

                                   

Q1. NSDP links are intended to provide quick access to a single comprehensive source of economic and financial data consistent with the data categories and components described in the subscriber’s metadata. NSDP stands for-
(a) National Summary District Page
(b) National Summary Development Page
(c) National Summary Department Page
(d) National Summary Division Page
(e) National Summary Data Page

Q2. An Asset Reconstruction Company (ARC) in India is associated with-
(a) UCPDC
(b) DICGC
(c) NPA
(d) Home Loan
(e) None of the given options is true

Q3. Which of the following is mainly used by the banks in order to meet their temporary requirement of Cash on a daily basis?
(a) Commercial Paper
(b) Certificate of Deposit
(c) Collateralized Borrowing and Lending Obligations (CBLO)
(d) Call Money
(e) None of the given options is true

Q4. 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

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

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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

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

Q8. National Securities Depository Limited is an Indian central securities depository based in _______
(a) New Delhi
(b) Chennai
(c) Hyderabad
(d) Mumbai
(e) Bengaluru

Q9. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in-
(a) 1999
(b) 1995
(c) 1991
(d) 1987
(e) 1982

Q10. National Housing Bank (NHB), a wholly owned subsidiary of the central bank (RBI) was established in 1988 under the-
(a) National Housing Bank Act, 1987
(b) National Housing Bank Act, 1988
(c) National Housing Bank Act, 1986
(d) National Housing Bank Act, 1985
(e) None of the given options is true

Q11. The Banking Ombudsman Scheme was introduced under __________ of the Banking Regulation Act, 1949 by RBI with effect from 1995.
(a) Section 25A
(b) Section 35A
(c) Section 45A
(d) Section 15A
(e) Section 55A

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Q12. SIDBI has started full-fledged merchant banking operations to benefit the expanding number of growth-oriented MSMEs, especially those with a strong technology and innovation quotient. What is the meaning of “D” in SIDBI?
(a) Development
(b) Department
(c) District
(d) Doing
(e) None of the given options is true

Q13. What is the full form of VTM?
(a) Virtual Truncated Machine
(b) Vehicle Teller Machine
(c) Virtual Timer Machine
(d) Virtual Teller Management
(e) Virtual Teller Machine

Q14. According to accepting public deposits, NBFCs can be classified into ____ broad categories.
(a) Two
(b) Three
(c) Four
(d) One
(e) Five

Q15. Which of the following is the country’s largest custodian and depository participant?
(a) CIBIL
(b) SEBI
(c) NABARD
(d) SHCIL
(e) None of the given options is true

Solutions

S1. Ans.(e)
Sol. The National Summary Data Page (NSDP) links are intended to provide quick access to a single comprehensive source of economic and financial data consistent with the data categories and components described in the subscriber’s metadata. Additionally, many of the NSDPs include further links to additional data or information on other national Internet data sites.

S2. Ans.(c)
Sol. Asset Reconstruction Company (ARC) also known as Securitization company in India helps to unlock the value of non-performing assets (NPA) in banks through Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.ARC is regulated by RBI as a Non Banking Financial Company (NBFC).

S3. Ans.(d)
Sol. Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

S4. 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.

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.

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.

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.

S8. Ans.(d)
Sol. National Securities Depository Limited is an Indian central securities depository based in Mumbai.

S9. 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.

S10. Ans.(a)
Sol. The Hon’ble Prime Minister of India, while presenting the Union Budget for 1987-88 on February 28, 1987 announced the decision to establish the National Housing Bank (NHB) as an apex level institution for housing finance. Following that, the National Housing Bank Bill (91 of 1987) providing the legislative framework for the establishment of NHB was passed by Parliament in the winter session of 1987 and with the assent of the Hon’ble President of India on December 23, 1987, became an Act of Parliament. The National Housing Policy, 1988 envisaged the setting up of NHB as the Apex level institution for housing. In pursuance of the above, NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987. NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital.

S11. 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.

S12. Ans.(a)
Sol. Small Industries Development Bank of India (SIDBI) has started full-fledged merchant banking operations to benefit the expanding number of growth-oriented micro, small and medium enterprises (MSMEs), especially those with a strong technology and innovation quotient.

S13. Ans.(e)
Sol. Virtual Teller Machine (VTM) is a flagship product of Iserve- Self Service kiosks that is a state-of-the-art kiosk that can automate 90% of the teller transactions.

S14. Ans.(a)
Sol. According to accepting public deposits, NBFCs can be classified into two broad categories, viz.,
(i) NBFCs accepting public deposit (NBFCs-D)
(ii) NBFCs not accepting/holding public deposit (NBFCs-ND).

S15. Ans.(d)
Sol. Stock Holding Corporation of India Ltd (SHCIL), India’s largest custodian and depository participant.

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Banking Affairs 21st September 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 21st September 2020 covering the following topics: NPA, MUDRA, EPZ, DIC, CGCI, Risk Management.

Q1. __________ An asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank.
(a) NPA
(b) KCC
(c) NPV
(d) GDP
(e) GNP

Q2. What is the full form of NPA?
(a) National Performing Assets
(b) New Performing Assets
(c) Non Production Assets
(d) Non Performing Assembly
(e) Non Performing Assets

Q3. MUDRA is a financial institution has been set up by Government of India for development and refinancing micro units’ enterprises. What is the meaning of “A” in MUDRA?
(a) Agency
(b) Association
(c) Assembly
(d) Agent
(e) Alert

Q4. MUDRA stands for ___________________.
(a) Micro Units Development & Refinance Agent
(b) Midium Units Development & Refinance Association
(c) Micro Units Department & Refinance Agency
(d) Micro Units Development & Refinance Agency
(e) Micro Unique Development & Refinance Assembly

Q5. India was one of the first in Asia to recognize the effectiveness of the EPZ model in promoting exports. EPZ stands for____________.
(a) Export Point Zone
(b) External Processing Zone
(c) Export Production Zone
(d) Export Processing Zone
(e) Export Processing Zonal

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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

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

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 “G” in CGCI?
(a) Grace
(b) Goodwill
(c) Global
(d) Gross
(e) Guarante

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

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 Instalment and Credit Guarantee Corporation

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Q11. ______________ is basically charged when a person uses a credit card to obtain cash.
(a) Early Repayment Charge
(b) Redemption Fee
(c) Transaction Fee
(d) Cash Advance Fee
(e) None of the given options is true

Q12. Which is an interest-free period that is to be given by a creditor to debtor?
(a) Fixed Period
(b) Preset Period
(c) Grace Period
(d) All of the Above
(e) None of the given options is true

Q13. ________ is a cheque rather an amount of cheque, which is above the balance available in the account of the payer.
(a) Travellers cheque
(b) Multicity Cheque
(c) Mutilated Cheque
(d) Over Draft
(e) Bad Debts

Q14. A cheque for a fixed amount that may be cashed or used in payment abroad after endorsement by the holder’s signature is known as ___________.
(a) Travellers cheque
(b) Multicity Cheque
(c) Mutilated Cheque
(d) Crossed Cheque
(e) None of the given options is true

Q15. Which of the following is not a measure of the Risk Management in Banks?
(a) CRR
(b) RTGS
(c) SLR
(d) Deposit Insurance
(e) None of the given options is true

Solutions

S1. Ans.(a)
Sol. Non ­performing Assets (NPA) is an asset, including a leased asset, becomes non­ performing when it ceases to generate income for the bank.

S2. Ans.(e)
Sol. NPA stands for Non ­performing Assets.

S3. Ans.(a)
Sol. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units’ enterprises.

S4. Ans.(d)
Sol. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units’ enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.

S5. Ans.(d)
Sol. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia’s first EPZ set up in Kandla, Gujarat in 1965.

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.

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.

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).

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.

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

S11. Ans.(d)
Sol. A cash advance fee is a charge that a credit card issuer charges a customer for accessing the cash credit line on his or her account, either through an ATM, convenience check or at a bank’s teller window.

S12. Ans.(c)
Sol. The grace period is the provision in most loan and insurance contracts which allows payment to be received for a certain period of time after the actual due date. During this period no late fees will be charged, and the late payment will not result in default or cancellation of the loan.

S13. Ans.(d)
Sol. An overdraft is an extension of credit from a lending institution when an account reaches zero. An overdraft allows the individual to continue withdrawing money even if the account has no funds in it.

S14. Ans.(a)
Sol. Traveller’s cheque is a medium of exchange that can be used in place of hard currency. Traveller’s cheques are often used by individuals travelling on vacation to foreign countries.

S15. Ans.(b)
Sol. Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. Statutory liquidity ratio (SLR) is the Indian government term for reserve requirement that the commercial banks in India require to maintain in the form of gold, government approved securities before providing credit to the customers. Deposit insurance is mandatory, and pays claims from a pool of funds to which every depository institution regularly contributes.

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Banking Affairs 17th September 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 17th September 2020 covering the following topics: Income Tax act, BSBDA, Benchmark Prime Lending Rate system, Doing Business Report, World Investment Report.

Q1. According to the Income Tax act of 1961, the age of Super senior Citizens should be____________.
(a) 60 years
(b) 70 years
(c) 80 years
(d) 75 years
(e) 65 years

Q2. Part of company’s earning or profit which is paid out to share holders is known as _______.
(a) Premium
(b) Dividend
(c) Bonus
(d) Sum Assured
(e) Return

Q3. BSBDA is a simple, basic account for routine banking transactions without the need of minimum balance requirement. BSBDA stands for-?
(a) Basic Savings Branch Deposit Account
(b) Balance Savings Bank Deposit Account
(c) Basic Savings Bank Demand Account
(d) Basic Savings Bank Deposit Account
(e) None of the given options is true

Q4. Which rate has replaced the erstwhile Benchmark Prime Lending Rate system with effect from July 1, 2010?
(a) Marginal Rate system
(b) Bank Rate system
(c) Repo Rate system
(d) Open Rate system
(e) Base Rate system

Q5. Banks cannot accept interest free deposits other than in________.
(a) Saving Account
(b) Recurring Deposit Account
(c) Fixed Deposit Account
(d) Nostro Account
(e) Current Account

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Q6. The Doing Business Report” is prepared by which of the following organizations every year?
(a) Asian Development Bank (ADB)
(b) World Bank (WB)
(c) New Development Bank (NDB)
(d) World Trade Organization (WTO)
(e) None of the given options is true

Q7. Which of the following cannot be called as a debt instrument as referred in financial transactions?
(a) Certificate of Deposits
(b) Bonds
(c) Stock
(d) Commercial Paper
(e) None of the given options is true

Q8. Which of the following is not a type of cheque issued by an individual?
(a) Bearer Cheque
(b) Crossed Cheque
(c) Order Cheque
(d) Savings Cheque
(e) None of the given options is true

Q9. “World Investment Report” is annually published by________.
(a) IBRD
(b) WTO
(c) IMF
(d) UNCTAD
(e) ADB

Q10. Treasury bills are issued in India by ______.
(a) RBI
(b) State Government
(c) Government of India
(d) SEBI
(e) NABARD

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Q11. Which of the following economic concepts is categorised on the basis of Current Account or Capital Account or both?
(a) Balance of Payments
(b) Value of the food grain stock of a country
(c) Gross National Product
(d) Gross National Income(GNI)
(e) Total collection of Direct Taxes in a year

Q12. When there is a difference between all receipts and expenditure of the Government of India both capital and revenue it is called?
(a) Revenue Deficit
(b) Budgetary Deficit
(c) Zero Budgeting
(d) Trade Gap
(e) Balance of Payment Problem

Q13. Sukanya Samriddhi Account can be opened up to age of ________ years only from the date of birth.
(a) Five years
(b) Four years
(c) Six years
(d) Eight years
(e) Ten years

Q14. What is the maturity period of Senior Citizen Saving Scheme (SCSS)?
(a) 5 years
(b) 50 years
(c) 1 years
(d) 10 years
(e) 15 years

Q15. There are only four eligible categories of PSLCs i.e. PSLC General, PSLC Small and Marginal Farmer, PSLC Agriculture & PSLC Micro Enterprises. PSLC stands for-?
(a) Public Sector Lending Certificates
(b) Priority Sector Lending Certificates
(c) Priority System Lending Certificates
(d) Priority Service Lending Certificates
(e) Priority Sector Lending Cash

Solutions

S1. Ans.(c)
Sol. According to the Income Tax act of 1961, the age of Super senior Citizens is 80 years.

S2. Ans.(b)
Sol. A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can re-invest it in the business (called retained earnings) and pay a fraction of the profit as a dividend to shareholders.

S3. Ans.(d)
Sol. Basic Savings Bank Deposit Account (BSBDA) a simple, basic account for routine banking transactions without the need of minimum balance requirement.

S4. Ans.(e)
Sol. The Base Rate system has replaced the erstwhile Benchmark Prime Lending Rate system with effect from July 1, 2010. Base Rate shall include all those elements of the lending rates that are common across all categories of borrowers.

S5. Ans.(e)
Sol. Banks cannot accept interest free deposits other than in current account.

S6. Ans.(b)
Sol. The Doing Business Report (DB) is a study elaborated by the World Bank Group every year that is aimed to measure the costs to firms of business regulations. The study has become one of the flagship knowledge products of the World Bank Group in the field of private sector development, and is claimed to have motivated the design of several regulatory reforms in developing countries.

S7. Ans.(c)
Sol. Debt instruments are assets that require a fixed payment to the holder, usually with interest. Examples of debt instruments include bonds (government or corporate), mortgages, Commercial Paper and Certificate of Deposits.

S8. Ans.(d)
Sol. An order cheque can be a bearer cheque if the words or bearer are not cancelled out. A crossed cheque is a cheque that has been marked to specify an instruction about the way it is to be redeemed.

S9. Ans.(d)
Sol. The World Investment Report has been published annually since 1991 by The United Nations Conference on Trade and Development (UNCTAD). Each year´s Report covers the latest trends in foreign direct investment around the World and analyses in depth one selected topic related to foreign direct investment and development.

S10. Ans.(c)
Sol. Treasury bills (T-bills) offer short-term investment opportunities, generally up to one year. They are thus useful in managing short-term liquidity. At present, the Government of India issues three types of treasury bills through auctions, namely, 91-day, 182-day and 364-day. There are no treasury bills issued by State Governments.

S11. Ans.(a)
Sol. A Balance of payments statements is a summary of a nation’s total economic transactions undertaken on international account. It is usually composed of two sections:-
1. Current Account
2. Capital Account

S12. Ans.(b)
Sol. Budgetary deficit is the difference between all receipts and expenses in both revenue and capital account of the government.If revenue expenses of the government exceed revenue receipts, it results in revenue account deficit. Similarly, if the capital disbursements of the government exceed capital receipts, it leads to capital account deficit. Budgetary deficit is usually expressed as a percentage of GDP.

S13. Ans.(e)
Sol. Sukanya Samriddhi Account can be opened up to age of 10 years only from the date of birth.

S14. Ans.(a)
Sol. The maturity period of Senior Citizen Saving Scheme (SCSS) is 5 years.

S15. Ans.(b)
Sol. There are only four eligible categories of PSLCs i.e. PSLC General, PSLC Small and Marginal Farmer, PSLC Agriculture & PSLC Micro Enterprises. PSLC stands for Priority Sector Lending Certificates.

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Banking Affairs 07th September 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 07th September 2020 covering the following topics: CCIL, Bank Identifier Codes, SWIFT, FVCI, FCCB.

Q1. ___________ to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets.
(a) NPCI
(b) SEBI
(c) GOI
(d) RBI
(e) CCIL

Q2. _________ will be authorised operational entities, adhering to the standards for facilitating bill payments online as well as through a network of agents, on the ground.
(a) BBPCU
(b) BBPOU
(c) Biller Payment
(d) Creditor
(e) Assets and Liabilities

Q3. ___________ a/an electronic trading platform, operated by the Reserve Bank of India, used to facilitate the exchange of government securities and other money market instruments.
(a) Delivery versus Payment (DvP)
(b) Negotiated Dealing System (NDS)
(c) Risk Mitigation
(d) Competition Commission of India (CCI)
(e) None of the given options is true

Q4. The Clearing Corporation of India Ltd. (CCIL) was set up in?
(a) December 2010
(b) February 1995
(c) September 2006
(d) April 2001
(e) March 1999

Q5. Which of the following is the mode of settlement of securities where in the transfer of securities and funds happen simultaneously?
(a) Delivery versus Payment (DvP)
(b) Negotiated Dealing System
(c) Clearing Corporation of India Ltd. (CCIL)
(d) All of the Above
(e) None of the given options is true

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Q6. Which scheme/act has enabled 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

Q7. ______ is a standard format of Bank Identifier Codes(BIC) for banks to identify banks and financial institutions globally.
(a) RTGS
(b) IFSC
(c) NEFT
(d) SWIFT
(e) None of the given options is true

Q8. How many codes are there in SWIFT code?
(a) 8
(b) 11
(c) 7
(d) Both (b) and (c)
(e) Both (a) and (b)

Q9. First 4 characters in the SWIFT code refers to___________.
(a) Bank Code
(b) Country Code
(c) Branch Code
(d) location Code
(e) None of the given options is true

Q10. SWIFT stands for?
(a) Station for Worldwide Interbank Financial Telecommunication
(b) Solution for Worldwide Interbank Financial Telecommunication
(c) System for Worldwide Interbank Financial Telecommunication
(d) Service for Worldwide Interbank Financial Telecommunication
(e) Society for Worldwide Interbank Financial Telecommunication

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Q11. An Foreign Venture Capital Investors (FVCI) can invest in an Indian company engaged in______________.
(a) Biotechnology
(b) Dairy industry
(c) Production of bio-fuels
(d) IT related to hardware and software development
(e) All of the above

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

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

Q14. What is the meaning of “C” in ECB?
(a) Concourse
(b) Cashless
(c) Common
(d) Conclusion
(e) Commercial

Q15. External Commercial Borrowings (ECB) can be raised under Track-II for 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

Solutions

S1. Ans.(e)
Sol. The Clearing Corporation of India Ltd. (CCIL) was set up in April, 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets. The introduction of guaranteed clearing and settlement led to significant improvement in the market efficiency, transparency, liquidity and risk management/measurement practices in these market along with added benefits like reduced settlement and operational risk, savings on settlement costs, etc.

S2. Ans.(b)
Sol. Bharat Bill Payment Operating Units (BBPOUs) will be authorised operational entities, adhering to the standards set by the BBPCU for facilitating bill payments online as well as through a network of agents, on the ground.

S3. Ans.(b)
Sol. Till 2002, the Government securities market was mainly a telephone market. Buyers and sellers traded over telephone and submitted physical Subsidiary General Ledger (SGL) transfer forms for transfer of the Government securities and cheques for settlement of the funds to the Reserve Bank of India. These manual operations were inefficient and often resulted in delays. In order to improve efficiency in the market, the Reserve Bank of India took steps to automate the process of trading and settlement of Government securities transactions and the Negotiated Dealing System (NDS) was introduced in February 2002.

S4. Ans.(d)
Sol. The Clearing Corporation of India Ltd. (CCIL) was set up in April, 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets.

S5. Ans.(a)
Sol. Delivery versus Payment (DvP) is the mode of settlement of securities where in the transfer of securities and funds happen simultaneously. This ensures that unless the funds are paid, the securities are not delivered and vice versa. DvP settlement eliminates the settlement risk in transactions.

S6. 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.

S7. Ans.(d)
Sol. Society for Worldwide Interbank Financial Telecommunication (SWIFT) Code is a standard format of Bank Identifier Codes(BIC) for banks to identify banks and financial institutions globally.

S8. Ans.(e)
Sol. The Swift code consists of 8 or 11 characters. When 8 digits code is given, it refers to the primary office and 11
digits code refers to branch office.

S9. Ans.(a)
Sol. First 4 characters in SWIFT code represents– bank code (only letters).

S10. Ans.(e)
Sol. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication. SWIFT provides a network that enables financial institutions worldwide to send and receive information about financial transactions in a secure, standardized and reliable environment.

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 bio-fuels
9. Hotel-cum-convention centres with seating capacity of more than three thousand.
10. Infrastructure sector.

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 issue of security if such amount is outstanding beyond the period of 180 days from the date of receipt.

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.

S14. Ans.(e)
Sol. ECB stands for External Commercial Borrowings.

S15. Ans.(b)
Sol. ECB can be raised under Track II for general corporate purpose (including working capital). The minimum average maturity period will be 10 years.

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Banking Affairs 03rd September 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 03rd September 2020 covering the following topics: Non Performing Assets, Asset Reconstruction Company, BBPOUs, Public Provident Fund.

Q1. Which Act was framed specially to deal with Non Performing Assets (NPA)?
(a) Banking Regulation Act 1949
(b) Foreign Exchange Management Act(FEMA) 1999
(c) Industrial Disputes Act 1947
(d) SARFAESI Act, 2002
(e) None of the given options is true

Q2. In Notice Money Market,the tenor of the transactions is from ________
(a) 2-7 days
(b) 2-14 days
(c) 2-21 days
(d) 2-28 days
(e) 2-90 days

Q3. An Asset Reconstruction Company (ARC) in India is associated with-
(a) UCPDC
(b) DICGC
(c) NPA
(d) Home Loan
(e) None of the given options is true

Q4. Which of the following is mainly used by the banks in order to meet their temporary requirement of Cash on a daily basis?
(a) Commercial Paper
(b) Certificate of Deposit
(c) Collateralized Borrowing and Lending Obligations (CBLO)
(d) Call Money
(e) None of the given options is true

Q5. ___________ is a voluntary market body for the bond, money and derivatives markets.
(a) RBI
(b) SEBI
(c) IRDAI
(d) FIMMDA
(e) UIDAI

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Q6. Who among the following regulates the Indian Corporate Debt Market?
(a) RBI
(b) NABARD
(c) SIDBI
(d) SEBI
(e) PFRDA

Q7. _______ is an integrated bill payment system which will offer inter operable bill payment service to customers online as well as through a network of agents on the ground.
(a) BBPS
(b) IMPS
(c) AEPS
(d) APBS
(e) None of the given options is true

Q8. To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval/authorisation to Reserve Bank of India under ________
(a) Payment and Settlement Systems (PSS) Act 2007
(b) Foreign Exchange Management Act, 1999
(c) Banking Regulation Act, 1949
(d) SARFAESI Act, 2002
(e) None of the given options is true

Q9. Which of the following will function as the Bharat Bill Payment Central Unit (BBPCU), single authorized entity operating the BBPS?
(a) RBI
(b) NPCI
(c) GOI
(d) SEBI
(e) NABARD

Q10. As per the Reserve Bank of India, BBPS will initially accept utility bill payments such as-
(a) Telephone Bill
(b) Electricity Bill
(c) DTH services
(d) All of the Above
(e) None of the given options is true

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Q11. 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

Q12. 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

Q13. 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

Q14. National Securities Depository Limited is an Indian central securities depository based in _______
(a) New Delhi
(b) Chennai
(c) Hyderabad
(d) Mumbai
(e) Bengaluru

Q15. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in-
(a) 1999
(b) 1995
(c) 1991
(d) 1987
(e) 1982

Solutions

S1. Ans.(d)
Sol. SARFAESI Act (The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) was enacted to regulate securitization and reconstruction of financial assets and enforcement of security interest created in respect of Financial Assets to enable realization of such assets.

S2. Ans.(b)
Sol. In money market, the amount that is lent for one day is known as “call money” and, if it exceeds one day or two days to 14 days is referred to as “notice money.”

S3. Ans.(c)
Sol. Asset Reconstruction Company (ARC) also known as Securitization company in India helps to unlock the value of non-performing assets (NPA) in banks through Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.ARC is regulated by RBI as a Non Banking Financial Company (NBFC).

S4. Ans.(d)
Sol. Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

S5. Ans.(d)
Sol. The Fixed Income Money Market and Derivatives Association of India (FIMMDA), an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers and Insurance Companies was incorporated as a Company under section 25 of the Companies Act,1956 on June 3rd, 1998. FIMMDA is a voluntary market body for the bond, money and derivatives markets.

S6. Ans.(d)
Sol. Regulator for the Indian Corporate Debt Market is the Securities and Exchange Board of India (SEBI). SEBI controls bond market and corporate debt market in cases where entities raise money from public through public issues.

S7. Ans.(a)
Sol. The Bharat Bill Payment System (BBPS) is a RBI mandated system which will offer integrated and interoperable bill payment services to customers across geographies with certainty, reliability and safety of transactions.

S8. Ans.(a)
Sol. To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval / authorisation to Reserve Bank of India under Payment and Settlement Systems (PSS) Act 2007. Bharat Bill Payment Operating Units (BBPOUs) will be the authorised operational units.

S9. Ans.(b)
Sol. National Payments Corporation of India (NPCI) will function as the authorized Bharat Bill Payment Central Unit (BBPCU), which will be responsible for setting business standards, rules and procedures for technical and business requirements for all the participants. NPCI, as the BBPCU, will also undertake clearing and settlement activities
related to transactions routed through BBPS.

S10. Ans.(d)
Sol. As per the Reserve Bank of India, BBPS will initially accept utility bill payments such as electricity, water, gas, telephone and direct-to-home services and will later include other repetitive payments including school and university fees and municipal taxes.

S11. 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.

S12. Ans.(a)
Sol. A Public Provident Fund (PPF) account holder can deposit a maximum of Rs 1.5 lakhs in his/her PPF account.

S13. Ans.(a)
Sol. The headquarters of Paschim Banga Gramin Bank is Howrah, West Bengal.

S14. Ans.(d)
Sol. National Securities Depository Limited is an Indian central securities depository based in Mumbai.

S15. 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.

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Banking Affairs 27th August 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 27th August 2020 covering the following topics: Deferred Net Settlement, RBI, Statutory Liquidity Ratio, National Housing Bank, BCSBI.

Q1. ___________ is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches.
(a) NEFT
(b) RTGS
(c) NPCI
(d) BBPS
(e) IMPS

Q2. The Central Office of the Reserve Bank was initially established in Calcutta (now Kolkata) but was permanently moved to Mumbai in-
(a) 1949
(b) 1937
(c) 1943
(d) 1945
(e) 1934

Q3. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under which act?
(a) Companies Act, 1956
(b) Negotiable Instruments Act, 1881
(c) Reserve Bank of India Act, 1934
(d) Banking Regulation Act, 1949
(e) None of the given options is true

Q4. A facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR). It is called?
(a) Repo Rate
(b) Reverse Repo Rate
(c) Bank Rate
(d) Marginal Standing Facility (MSF)
(e) Liquidity Adjustment Facility (LAF)

Q5. National Housing Bank (NHB) was set up on ______________ under the National Housing Bank Act, 1987.
(a) 01st July 1956
(b) 02nd October, 1976
(c) 01st January 1934
(d) 21st May 1956
(e) 09th July 1988

Q6. BCSBI was set up to ensure that the common person as a consumer of financial services from the banking Industry is in no way at a disadvantageous position and really gets what he/she has been promised. BCSBI stands for-?
(a) Branch Codes and Standards Board of India
(b) Banking Codes and Stability Board of India
(c) Banking Codes and Standards Bank of Industry
(d) Banking Codes and Society Board of Investment
(e) Banking Codes and Standards Board of India

Q7. When was the currency system in India converted into decimal system?
(a) April 01st 1959
(b) April 01st 1957
(c) April 01st 1955
(d) April 01st 1953
(e) April 01st 1951

Q8. Which of the following field Dalal Street in Mumbai is famous?
(a) NABARD
(b) Stock Exchange
(c) RBI
(d) SEBI
(e) Commerce and industry ministry

Q9. Deposits which can be withdrawn by a customer without notice is called?
(a) Time Deposits
(b) Demand Deposits
(c) Variable Deposits
(d) Low cost Deposits
(e) None of the given options is true

Q10. Which of the following is not e-banking software?
(a) ECS
(b) RTGS
(c) PIPS
(d) NEFT
(e) M-Banking

Q11. _________ account is opened by the investor while registering with an investment broker.
(a) Fixed Deposit Account
(b) Savings Bank Account
(c) Recurring Account
(d) Demat Account
(e) None of the given options is true

Q12. Which of the following bank launches India’s first Mobile ATM?
(a) HDFC Bank
(b) Axis Bank
(c) ICICI Bank
(d) SBI
(e) Bank of Baroda

Q13. World’s first Bitcoin ATM located in-
(a) US
(b) Brazil
(c) Canada
(d) UK
(e) Japan

Q14. _______ is a financial market in which share prices are rising or expected to rise.
(a) Bear Market
(b) Bull Market
(c) Pig Market
(d) High Market
(e) None of the given options is true

Q15. Who was known as the “Father of Modern Economics”?
(a) Amartya Sen
(b) Karl Marx
(c) Adam Smith
(d) George Loewenstein
(e) None of the given options is true

Solutions

S1. Ans.(a)
Sol. National Electronics Funds Transfer (NEFT) is an electronic fund transfer system that operates on a Deferred Net Settlement (DNS) basis which settles transactions in batches.

S2. Ans.(b)
Sol. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937.

S3. Ans.(c)
Sol. 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.

S4. Ans.(d)
Sol. Marginal Standing Facility (MSF) is a facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank by dipping into their Statutory Liquidity Ratio (SLR).

S5. Ans.(e)
Sol. The Hon’ble Prime Minister of India, while presenting the Union Budget for 1987-88 on February 28, 1987 announced the decision to establish the National Housing Bank (NHB) as an apex level institution for housing finance. NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.

S6. Ans.(e)
Sol. In November 2003, Reserve Bank of India (RBI) constituted the Committee on Procedures and Performance Audit of Public Services under the Chairmanship of Shri S.S.Tarapore (former Deputy Governor) to address the issues relating to availability of adequate banking services to the common person. Therefore, the Committee recommended setting up of the Banking Codes and Standards Board of India (BCSBI). BCSBI was set up to ensure that the common person as a consumer of financial services from the banking Industry is in no way at a disadvantageous position and really gets what he/she has been promised.

S7. Ans.(b)
Sol. The Indian currency system was converted into decimal system by Indian Coinage (Amendment) Act 1955 which brought into force from April 01st 1957.

S8. Ans.(b)
Sol. The Bombay Stock Exchange (BSE) is located at Dalal Street.

S9. Ans.(b)
Sol. A deposit of money that can be withdrawn without prior notice is known as Demand Deposits, Ex:- in a current account.

S10. Ans.(c)
Sol. ECS – Electronic Clearing Service.
RTGS – Real Time Gross Settlement.
NEFT- National Electronics Funds Transfer System.
Mobile banking is a service provided by a bank or other financial institution that allows its customers to conduct financial transactions remotely using a mobile.
PIPS is not an e-banking software.

S11. Ans.(d)
Sol. DEMAT or De-materialized Account refers to a deposit made at an Indian financial institution that can be used for investing in shares of stocks and other financial assets.Securities are held electronically in a DEMAT Account, thereby eliminating the need for physical paper certificates.

S12. Ans.(c)
Sol. India’s largest private sector bank, ICICI launched the “ATM on Wheels” country first Mobile ATM, in Mumbai. It was connected to the bank through the GPRS technology.

S13. Ans.(c)
Sol. The world’s first-ever Bitcoin ATM opened in Vancouver, Canada. It enables Bitcoin owners to exchange the digital currency for cash, and vice versa. Bitcoin is a digital currency also called crypto-currency that is not backed by any country’s central bank or government. Bitcoins can be traded for goods or services with vendors who accept Bitcoins as payment.

S14. Ans.(b)
Sol. A bull market is a financial market of a group of securities in which prices are rising or are expected to rise. It means the economy is growing. The term “bull market” is most often used to refer to the stock market, but can be applied to anything that is traded, such as bonds, currencies and commodities.

S15. Ans.(c)
Sol. Adam Smith was an 18th-century philosopher renowned as the father of modern economics, and a major proponent of laissez-faire economic policies.

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Banking Affairs 17th August 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 17th August 2020 covering the following topics: Banking Regulation Act, RRBs, NPA, KYC, DICGC.

Q1. Which of the following is a receipt, declaring ownership of shares of a foreign company and can be listed in India and traded in rupees?
(a) ADR
(b) GDR
(c) IDR
(d) EDR
(e) None of the given options is true

Q2. What is the term for a bank without any branch network that offers its services remotely?
(a) Internet only Banks
(b) Direct Bank
(c) Lending Institution
(d) Indirect Bank
(e) Online Bank

Q3. The opening of branches by banks is governed by the provisions of Section _______ of the Banking Regulation Act, 1949.
(a) Section 44
(b) Section 18
(c) Section 27
(d) Section 32
(e) Section 23

Q4. For expanding access to banking services, the RBI has advised banks to open branches with minimum infrastructure support of 8 to 10BC units at a reasonable 3-4km. Such branches are known as _______.
(a) White Label ATMs
(b) Ultra Small Branches
(c) Banking Kiosks
(d) CBS Terminals
(e) ICT Hubs

Q5. Which among the following conditions, Regional Rural Banks (RRBs) should fulfill to become eligible to open new branch/es?
(a) No default in maintenance of SLR and CRR during the last two years
(b) Operational profits are being made
(c) Net worth shows improvement
(d) Net NPA ratio does not exceed 8 per cent
(e) All of the above conditions should fulfill by RRBs

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Q6. Which of the following is the negotiable instrument?
(a) Fixed Deposit of a Bank
(b) Share certificate issued by a PSU
(c) Demand Draft issued by a bank
(d) Debenture of a company
(e) Airway Receipt

Q7. Bank Holidays are covered by which of the following?
(a) As per the order of the GOI
(b) As per the order of the IBA
(c) Negotiable Instruments Act
(d) RBI Act
(e) None of the given options is true

Q8. A non performing Asset in Banking Business means_____________.
(a) A fixed asset of Bank is not been utilized
(b) A portion of deposits not been utilized
(c) A loan asset on which interest and/or instalments not paid for a period of more than 90 days
(d) All of the Above
(e) None of the given options is true

Q9. Alterations, if any, on cheques are required to be authenticated by the signature of_______________.
(a) Payee
(b) Depositor
(c) Drawer
(d) Endorse
(e) All of the above

Q10. What is the purpose of KYC in banking?
(a) It is used for customer identification
(b) It is used for increasing the CRR of banks
(c) It is used against money laundering
(d) It is used by the central bank to control liquidity
(e) Both (a) and (c)

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Q11. 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 above

Q12. 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 Instalment and Credit Guarantee Corporation

Q13. DICGC was came into existence on___________.
(a) 15th July 1949
(b) 15th July 1961
(c) 15th July 1982
(d) 15th July 1972
(e) 15th July 1978

Q14. The authorized capital of the DICGC is 50 crore, which is fully issued and subscribed by______________.
(a) Government of India
(b) SIDBI
(c) NABARD
(d) RBI
(e) SEBI

Q15. Which type of Banks are covered under Deposit Insurance (DICGC) Scheme?
(a) All commercial banks including the branches of foreign banks functioning in India
(b) Local Area Banks
(c) Regional Rural Banks
(d) All of the above
(e) None of the given options is true

Solutions

S1. Ans.(c)
Sol. An IDR (Indian Depository Receipts)is a receipt, declaring ownership of shares of a foreign company. These receipts can be listed in India and traded in rupees.

S2. Ans.(b)
Sol. A direct bank is a bank without any branch network that offers its services remotely via online banking and telephone banking and may also provide access via ATMs (often through interbank network alliances), mail and mobile. By eliminating the costs associated with bank branches, direct banks can make significant savings which they may pass on to clients via higher interest rates or lower service charges.

S3. Ans.(e)
Sol. The opening of branches by banks is governed by the provisions of Section 23 of the Banking Regulation Act, 1949. In terms of these provisions, banks cannot open a new place of business in India or abroad or change otherwise than within the same city, town or village, the location of the existing place of business without the prior approval of the Reserve Bank of India (RBI). Thus, it is mandatory for RRBs to seek prior approval/licence from Rural Planning and Credit Department (RPCD) of RBI before opening of new branches/offices.

S4. Ans.(b)
Sol. Ultra Small Branches may be set up between the base branch and BC locations so as to provide support to about 8-10 BC Units at a reasonable distance of 3-4 kilometres. These could be either newly set up or by conversion of the BC outlets. Such Ultra Small Branches should have minimum infrastructure such as a Core Banking Solution (CBS) terminal linked to a pass book printer and a safe for cash retention for operating large customer transaction and would have to be managed full time by bank officers/employees.

S5. Ans.(e)
Sol. RRBs should fulfill the following conditions, to become eligible to open new branch/es:
i. No default in maintenance of SLR and CRR during the last two years;
ii. Operational profits are being made;
iii. Net worth shows improvement;
iv. Net NPA ratio does not exceed 8 per cent.

S6. Ans.(c)
Sol. A demand draft is a negotiable instrument similar to a bill of exchange. A bank issues a demand draft to a client (drawer), directing another bank (drawee) or one of its own branches to pay a certain sum to the specified party (payee).

S7. Ans.(c)
Sol. Bank Holidays are declared by Central/State Governments/Union Territory under the Negotiable Instruments (NI) Act, 1881.

S8. Ans.(c)
Sol. A Non-performing asset (NPA) refers to a classification for loans on the books of financial institutions that are in default or are in arrears on scheduled payments of principal or interest. In most cases, debt is classified as nonperforming when loan payments have not been made for a period of 90 days.

S9. Ans.(c)
Sol. Alterations, if any, on cheques are required to be authenticated by the drawer’s signature against each such alteration.

S10. Ans.(e)
Sol. Know your customer (KYC) is the process of a business verifying the identity of its clients. Know your customer policies are becoming much more important globally to prevent identity theft, financial fraud, money laundering and terrorist financing.

S11. 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.

S12. Ans.(b)
Sol. DICGC stands for Deposit Insurance and Credit Guarantee Corporation.

S13. Ans.(e)
Sol. Deposit Insurance and Credit Guarantee Corporation (DICGC) was came into existence on July 15, 1978. Consequently, the title of Deposit Insurance Act, 1961 was changed to ‘The Deposit Insurance and Credit Guarantee Corporation Act, 1961’.

S14. Ans.(d)
Sol. The authorized capital of the Corporation is 50 crore, which is fully issued and subscribed by the Reserve Bank of India (RBI).

S15. Ans.(d)
Sol. All commercial banks including the branches of foreign banks functioning in India, Local Area Banks and Regional Rural Banks are covered under Deposit Insurance (DICGC) Scheme.

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The Banking Awareness section constitutes a major part of a competitive examination and needs your undivided attention. With the increased competition in the field of Banking examinations, it has now become very important to cover up all the sections efficiently.

                                   

Banking Affairs 13th August 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 13th August 2020 covering the following topics: FATF, United Nations, BRBNMPL, EMI, AIIB, ADB.

Q1. The FATF is an inter-governmental body. FATF stands for?
(a) Financial Action Task Forum
(b) Financial Action Task Fund
(c) Financial Action Time Force
(d) Financial Agency Task Force
(e) Financial Action Task Force

Q2. ___________ is used to describe small loans granted to low income individuals that are excluded from the traditional banking system.
(a) Industries credit
(b) Micro credit
(c) Small credit
(d) Farmer credit
(e) None of the given options is true

Q3. In which among the following year FATF was established?
(a) 1978
(b) 1982
(c) 1995
(d) 1989
(e) 1962

Q4. Which year was declared as the ‘International Year of Microcredit’ by United Nations?
(a) 2002
(b) 2009
(c) 2005
(d) 2011
(e) 2000

Q5. The market in which long term securities such as stocks and bonds are bought and sold is commonly known as ____________.
(a) Bullion Market
(b) Capital Market
(c) Bull Market
(d) Money Market
(e) None of the given options is true

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Q6. An Agreement to exchange one currency with another, at a specific rate of exchange is known as _____________.
(a) Currency Swap
(b) ECB
(c) Base Rate
(d) Bank Rate
(e) Import-Export

Q7. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) was established as its wholly owned subsidiary on _________________.
(a) 1988
(b) 1992
(c) 2002
(d) 1995
(e) 1999

Q8. The BRBNMPL has been registered as a _____________ under the Companies Act 1956.
(a) Public Limited Company
(b) Foreign Limited Company
(c) Private Limited Company
(d) All of the above
(e) None of the given options is true

Q9. Which of the following is an instrument used in India to facilitate the access to foreign money by Indian corporations and PSUs?
(a) Currency Swap
(b) ECB
(c) Base Rate
(d) Bank Rate
(e) NRO

Q10. Where is the Corporate Office of Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)?
(a) Mumbai
(b) Kochin
(c) Chennai
(d) Hyderabad
(e) Bengaluru

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Q11. Which bank become first Bank in India to launch EMI facility on debit cards?
(a) Bandhan Bank
(b) SBI
(c) HDFC Bank
(d) ICICI Bank
(e) Axis Bank

Q12. SAT is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India (SEBI) Act, 1992. SAT stands for ____________.
(a) Securities Appellate Tribunal
(b) Securities Appellate Treaty
(c) Securities Association Tribunal
(d) Saving Appellate Tribunal
(e) None of the given options is true

Q13. An account for which a bank acts as an uninterested third party is termed as?
(a) Savings Account
(b) Current Account
(c) Reserve Account
(d) Escrow Account
(e) Fixed Account

Q14. The Asian Development Bank (ADB) was conceived in the early __________ as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.
(a) 1950s
(b) 1960s
(c) 1940s
(d) 1970s
(e) 1980s

Q15. Who is the present president of the Asian Infrastructure Investment Bank (AIIB)?
(a) Li Keqiang
(b) Wang Yi
(c) Xie Xuren
(d) Lou Jiwei
(e) Jin Liqun

Solutions

S1. Ans.(e)
Sol. The Financial Action Task Force (FATF) is an inter-governmental body.

S2. Ans.(b)
Sol. Microcredit is used to describe small loans granted to low income individuals that are excluded from the traditional banking system. It is part of the larger microfinance industry, which provides not only credit, but also savings, insurance, and other basic financial services to the poor. The term ‘micro’ stems from the relatively small amounts of money that are being borrowed or saved.

S3. Ans.(d)
Sol. The Financial Action Task Force (FATF) is an inter-governmental body established in 1989 by the Ministers of its Member jurisdictions.

S4. Ans.(c)
Sol. Year 2005 was declared as the ‘International Year of Microcredit’ by United Nations.

S5. Ans.(b)
Sol. A capital market is a financial market in which long-term debt or equity-backed securities are bought and sold.

S6. Ans.(a)
Sol. An Agreement to exchange one currency with another, at a specific rate of exchange is known as Currency Swap.

S7. Ans.(d)
Sol. Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL) was established by Reserve Bank of India (RBI) as its wholly owned subsidiary on 3rd February 1995 with a view to augmenting the production of bank notes in India to enable the RBI to bridge the gap between the supply and demand for bank notes in the country.

S8. Ans.(c)
Sol. The BRBNMPL has been registered as a Private Limited Company under the Companies Act 1956 with its Registered and Corporate Office situated at Bengaluru. The company manages 2 Presses one at Mysore in Karnataka and the other at Salboni in West Bengal. The present capacity for both the presses is 16 billion note pieces per year on a 2-shift basis.

S9. Ans.(b)
Sol. External Commercial Borrowing(ECB) is an instrument used in India to facilitate the access to foreign money by
Indian corporations and PSUs.

S10. Ans.(e)
Sol. The BRBNMPL has been registered as a Private Limited Company under the Companies Act 1956 with its Registered and Corporate Office situated at Bengaluru.

S11. Ans.(d)
Sol. ICICI Bank, the country’s largest private sector bank, announced the launch of EMI (Equated Monthly Instalments) facility on debit cards to enable its customers to convert high value transactions into easy instalments. ICICI Bank is the first in the country to introduce this facility.

S12. Ans.(a)
Sol. Securities Appellate Tribunal (SAT) is a statutory body established under the provisions of Section 15K of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by the Securities and Exchange Board of India or by an adjudicating officer under the Act and to exercise jurisdiction, powers and authority conferred on the Tribunal by or under this Act or any other law for the time being in force.

S13. Ans.(d)
Sol. An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties. Definition: An escrow account is a temporary pass through account held by a third party during the process of a transaction between two parties.

S14. Ans.(b)
Sol. The Asian Development Bank was conceived in the early 1960s as a financial institution that would be Asian in character and foster economic growth and cooperation in one of the poorest regions in the world.

S15. Ans.(e)
Sol. Jin Liqun is present president of the Asian Infrastructure Investment Bank (AIIB).

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13th August Current Affairs 2020 | Current Affairs Today | Daily Current Affairs 2020

Visit Achieversadda.com and participate in discussions with other aspirants and achievers. Get answers to your queries and connect with others on Achieversadda.com

All the Best BA’ians for RBI Assistant Mains!