Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 10

ANSWER: Bank of India

Explanation:
Bank of India is the first Indian bank to open branch outside India at London in 1946.

Bank of India (BoI) is a commercial bank with headquarters in Mumbai, Maharashtra, India.

BoI – Bank of India

Founded : 7 September 1906; 110 years ago
Headquarter : Mumbai, India
Current Head : Melwyn Rego (MD & CEO)

ANSWER: DICGC

Explanation:
Deposit Insurance and Credit Guarantee Corporation (DICGC) insures the banks in India.

• Deposit Insurance and Credit Guarantee Corporation (DICGC) is a subsidiary of Reserve Bank of India.
• It was established on 15 July 1978 under Deposit Insurance and Credit Guarantee Corporation Act, 1961 for providing insurance of deposits and guaranteeing of credit facilities.
• DICGC insures all bank deposits, such as saving, fixed, current, recurring deposits for up to the limit of Rs. 100,000 of each deposit in a bank.

DICGC - Deposit Insurance and Credit Guarantee Corporation

Founded : 15 July 1978
Headquarter : Mumbai, Maharashtra
Current Head : Shri N.S. Vishwanathan (Chairman - DICGC)

ANSWER: OMO

Explanation:
An open market operation is an instrument of monetary policy which involves buying or selling of government securities from or to the public and banks.

The RBI sells government securities to control the flow of credit and buys government securities to increase credit flow.

Open market operation makes bank rate policy effective and maintains stability in government securities market.

ANSWER: Banking system that combines commercial and investment banking

Explanation:
The banking system that combines deposit banking with investment banking is known as mixed banking.

The mixed bank receives deposits from public and provides short term, medium term and long term loan to industries.

Mixed banking system refers to that banking system under which the commercial banks make long term loans to industry.

In mixed banking, the commercial banks promote the industrialization of their country and come forward to provide the initial capital to the newly started industries.

Alongside the task of providing capital to industries, mixed banks also perform the functions of deposit banks.

ANSWER: Government of India, NABARD and RBI

Explanation:
FIF

The objectives of the FIF shall be to support developmental and promotional activities with a view to securing greater financial inclusion, particularly among weaker sections, low income groups and in backward regions/hitherto unbanked areas.

FITF

The objectives of FITF shall be to enhance investment in Information Communication Technology (ICT) aimed at promoting financial inclusion, stimulate the transfer of research and technology in financial inclusion, increase the technological absorption capacity of financial service providers/users and encourage an environment of innovation and cooperation among stakeholders.

ANSWER: UCO Bank

Explanation:
Reserve Bank of India has told state-run UCO Bank to pay Rs 1 crore penalty for flouting bill discounting norms which allowed current account holders siphon out funds.

UCO Bank, formerly United Commercial Bank, established in 1943 in Kolkata, is a major government-owned commercial bank of India.

UCO Bank's headquarters is on BTM Sarani, Kolkata.

UCO Bank

Founded : 6 January 1943; 73 years ago
Headquarter : Kolkata, India
Current Head : Mr. Ravi Krishan Takkar (Chairman & MD)

Other Major Banks that have headquarters at Kolkata are -

Allahabad Bank

Founded : 24 April 1865; 151 years ago
Headquarter : Kolkata
Current Head : Rakesh Sethi (Chairman & MD)

United Bank of India

Founded : 1950; 66 years ago
Headquarter : Kolkata
Current Head : Pawan kumar Bajaj (MD & CEO)

ANSWER: Federal Bank

Explanation:
Kerala based private sector lender, Federal Bank has tied up with MMTC Ltd. for distribution of Indian Gold Coins (IGC), the first-Ever national gold offering by the government, which was launched by Prime Minister Narendra Modi In November 2015.

The Federal Bank Limited is a major Indian commercial bank in the private sector, headquartered at Aluva, Kochi, Kerala.

Federal Bank

Founded : 1945
Headquarter: Kochi, Kerela, India
Current Head : Shyam Srinivasan (MD & CEO)

ANSWER: Cooperative Societies Act, 1912

Explanation:
All banks registered under the Cooperative Societies Act, 1912 are considered co-operative banks.

These are banks run by an elected managing committee with provisions of members’ rights and a set of “communally developed and approved bylaws and amendments”.
Co-operative banks work on a “no profit, no loss” basis.

The cooperative banks are regulated by Reserve Bank of India (RBI).

These banks have a three-tier structure -

• Primary (agriculture or urban) credit societies
• District central co-operative banks
• State co-operative banks (at apex level).

ANSWER: Central Board of Excise and Customs

Explanation:
The Central Board of Excise and Custom is the nodal national agency responsible for administering Customs, Central Excise, Service Tax and Narcotics in India.

The Customs & Central Excise department was established in the year 1855 by the then British Governor General of India.

It is one of the oldest government departments of India.
Currently, the Customs and Excise department comes under the Department of Revenue, Ministry of Finance.

The Central Board of Excise & Customs (CBEC) is headed by Chairperson CBEC and consists of six Members of CBEC.

CBEC Chairperson - Mr. Najib Shah, IRS

• Member Budget - Mr. Ram Tirath, IRS
• Member Customs - Mr. B.K. Bansal, IRS
• Member Service Tax - Mr. K.K. Sharma, IRS
• Member Central Excise - Ms. Neerja Shah, IRS
• Member Personnel & Vigilance - Ms. Vanaja N. Sarna, IRS
• Member Legal & IT - Ms. Ananya Ray, IRS

CBEC

Formed : 26 Jan 1944
Headquarter : Ministry of Finance, North Block, New Delhi, India

ANSWER: SMERA

Explanation:
SMERA Ratings Limited (formerly SME Rating Agency of India Ltd.) is a full service credit rating agency exclusively set up for micro, small and medium enterprises.

It provides ratings which enable MSME, SMEs, and Corporate to raise bank loans at competitive rates of interest.

SMERA

Founded : 2005
Headquarter : Mumbai, India
Current Head : Mr. Sankar Chakraborty (CEO)

ANSWER: Swavalamban Yojana

Explanation:
Atal Pension Yojana is a government-backed pension scheme in India targeted at the unorganized sector.

It was formally launched by Prime Minister Narendra Modi on 9 May 2015 in Kolkata.

What it offers : Pension between Rs 1,000 and Rs 5,000 a month.

Cost : For a monthly pension of Rs 1,000, a 40-year-old subscriber will have to invest Rs 291 per month for 20 years.

For 18-year-old will have to contribute Rs 42 per month for 40 years.

Eligibility : All individuals between 18 and 40, who will have to contribute till they turn 60.

This is an investment you need to make on behalf of your domestic staff who may not have anyone to look after them once they stop working.

ANSWER: SARFAESI Act, 2002

Explanation:
The Securitization And Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (also k/as SARFAESI Act).

It allows banks and other financial institution to auction residential or commercial properties to recover loans.

The first asset reconstruction company (ARC) of India, ARCIL, was set up under this act.

The act was amended by "Enforcement of Security Interest and Recovery of Debts Laws and Miscellaneous Provisions (Amendment) Bill, 2016", passed by Lok Sabha on 2 August 2016.