Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 13

ANSWER: 1959

Explanation:
The State Bank of India (Subsidiary Banks) Act was passed in 1959.

The Act enabled the State Bank of India to make the eight former State-associated banks as its subsidiaries.

Out of 8, only 5 are still working and will soon be merged with SBI.

Note that, the current five associate banks are :

• State Bank of Bikaner and Jaipur (SBBJ)
• State Bank of Hyderabad (SBH)
• State Bank of Mysore (SBM)
• State Bank of Patiala (SBP)
• State Bank of Travancore (SBT)

ANSWER: 10

Explanation:
The Reserve Bank of India (RBI) recently granted an in-principle nod to 10 entities for setting up small finance banks.

The 10 entities that received the nod for small banks include -

• Au Financiers (Jaipur)
• Capital Local Area Bank (Jalandhar)
• Disha Microfin (Ahmedabad)
• Equitas Holdings (Chennai)
• ESAF Microfinance and Investments (Chennai)
• Janalakshmi Financial Services (Bengaluru)
• RGVN (Northeast) Microfinance (Guwahati)
• Suryoday Micro Finance (Navi Mumbai)
• Ujjivan Financial Services (Bengaluru)
• Utkarsh Micro Finance (Varanasi)

In a way, there are like commercial banks because both provide the saving and lending facility, however, small banks must follow stricter regulations as proposed by RBI.

• 75% of its Adjusted Net Bank Credit (ANBC) should be advanced to the priority sector.
• Maximum loan size to a single person cannot exceed 10% of total capital funds; cannot exceed 15% in the case of a group.
• Minimum paid-up equity capital requirement of Rs 100 crore.
• A fundamental requirement is that it must have 25% of its branches set up in unbanked areas.

ANSWER: IDBI

Explanation:
IDBI is NOT a subsidiary of RBI.

RBI has four subsidiaries viz. -

• Deposit Insurance and Credit Guarantee Corporation (DICGC)
• National Housing Bank (NHB)
• Bharatiya Reserve Bank Note Mudran Private Limited (BRBNMPL)
• National Bank for Agriculture and Rural Development (NABARD)

ANSWER: 2004

Explanation:
Industrial Development Bank of India (IDBI) was constituted under Industrial Development Bank of India Act, 1964 as a Development Financial Institution and came into being as on July 01, 1964.

It continued to serve as a DFI for 40 years till the year 2004 when it was transformed into a Bank.

Subsequently, in September 2004, the Reserve Bank of India incorporated IDBI as a 'scheduled bank' under the RBI Act, 1934.

Consequently, IDBI, formally entered the portals of banking business as IDBI Ltd. from 1^st October 2004.

The commercial banking arm, IDBI BANK, was merged into IDBI in 2005.

In 2006, IDBI Bank acquired United Western Bank (headquartered at Satara).

IDBI - Industrial Development Bank of India

Founded : July 1, 1964
Headquarters : Mumbai, India
Current Head : Mr. Kishor Kharat (MD & CEO)

ANSWER: Rakesh Sharma

Explanation:
Rakesh Sharma is chosen from private sector to head the Public Sector Bank.

Before being appointed by the Government to head Canara Bank, Sharma was the MD and CEO of Lakshmi Vilas Bank since March 2014, where, in a short span of 18 months, he helped the private sector lender excel in all parameters.

Similarly, Kishor Kumar Sansi is appointed as the MD & CEO of Vijaya Bank.

Vijaya Bank is a fastest growing Public Sector Bank with its Corporate Office in Bangalore, Karnataka, India.

It is one of the nationalized banks in India.

Vijaya Bank was founded in the year 1931 at Mangalore, India.

ANSWER: IDFC Bank

Explanation:
Private sector lender IDFC Bank announced the acquisition of Tamil Nadu-based Grama Vidiyal Micro finance that will help it widen the reach.

IDFC Bank claims that it is the first time an Indian bank has acquired a micro-finance institution.

Prior to this, the bank had purchased 10% stake in Dhaka-based ASA International in January for nearly Rs 8.5 crores.

IDFC received a universal banking license from the Reserve Bank of India (RBI) in July 2015.

IDFC Bank

Founded : October, 2015
Headquarter : Mumbai, Maharashtra
Current Head : Dr. Rajiv Lall (MD & CEO)

ANSWER: Primary Urban Co-operative Bank

Explanation:
The structure of cooperative network in India can be divided into 2 broad segments - Urban Cooperative Banks and Rural Cooperative Banks.

Urban Cooperatives can be further divided into scheduled and non-scheduled.

Both the categories are further divided into multi-state and single-state. Majority of these banks fall in the non-scheduled and single-state category.

Banking activities of Urban Cooperative Banks are monitored by RBI.

Registration and Management activities are managed by Registrar of Cooperative Societies (RCS).

These RCS operate in single-state and Central RCS (CRCS) operate in multiple state.

Rural Cooperatives

The rural cooperatives are further divided into short-term and long-term structures.

The short-term cooperative banks are three-tiered operating in different states -

• State Cooperative Banks - They operate at the apex level in states District.
• Central Cooperative Banks - They operate at the district levels.
• Primary Agricultural Credit Societies - They operate at the village or grass-root level.

Likewise, the long-term structures are further divided into -

• State Cooperative Agriculture and Rural Development Banks (SCARDS) - These operate at state-level.
• Primary Cooperative Agriculture and Rural Development Banks (PCARDBS) - They operate at district/block level.
  
  All banking activities are regulated by RBI.
  
  All management and registration activities are managed by RCS.

ANSWER: National Automated Clearing House (NACH)

Explanation:
NACH - National Automated Clearing House

A web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature.

NACH System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc.

Also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.

Major developments and Services by the NPCI -

• National Financial Switch (NFS) - Network of shared automated teller machines in India.
• Unified Payment Interface (UPI) - Single mobile application for accessing different bank accounts.
• Immediate Payment Service (IMPS) - Real time payment with mobile number.
  
  *99# - Mobile banking using USSD.
  
  National Automated Clearing House (NACH) -
  
  Cheque Truncation System (CTS) - Online image-based cheque clearing system.
  
  Aadhaar Payments Bridge System (APBS) - RuPay - Card scheme
  
  Bharat Bill Payment System (BBPS) Integrated bill payment system

ANSWER: Syndicate Bank

Explanation:
Syndicate Bank sponsored the first regional rural bank in India by name Prathama Bank, in Moradabad district Uttar Pradesh on 2 October 1975.

Presently, the bank is sponsoring 3 RRBs and all are profit making having total business of Rs.42101 crore with 1348 branches as on 31.03.2015.

• Prathama Bank
• Karnataka Vikas Grameena Bank
• Andhra Pragathi Grameena Bank

Syndicate Bank is one of the oldest and major commercial banks of India.

It was founded by T. M. A. Pai, Upendra Pai and Vaman Kudva.

At the time of its establishment, the bank was known as Canara Industrial and Banking Syndicate Limited.

The Bank is headquartered in Manipal, Karnataka, India.

Syndicate Bank

Founded : 1925; 91 years ago, (as Canara Industrial and Banking Syndicate Limited)
Headquarter : Manipal, Karnataka, India
Current Head : Shri Arun Srivastava (MD & CEO)

ANSWER: Hyderabad

Explanation:
Andhra Bank has its headquarters in Hyderabad, India.

Andhra Bank is a medium-sized public sector bank (PSB) of India.

The Government of India owns 63.97% of its share capital as on 31 Dec 2015.

The state-owned Life Insurance Corporation of India holds 7.66% of the shares.

Andhra Bank is a pioneer in introducing Credit Cards in the country in 1981.

Andhra Bank has ranked No.1 in terms of number of Life Insurance Policies mobilized amongst all the agency banks dealing with the Life Insurance Corporation of India.

The bank also has tie-up with United India Insurance Company Limited under Bancassurance (Non-Life)

Andhra Bank

Founded : 20 November 1923; 93 years ago
Headquarter : Hyderabad
Current Head : Suresh N Patel (MD & CEO)

ANSWER: Gurugram

Explanation:
ICRA Limited (ICRA) is an Indian independent and professional investment information and credit rating agency.

It was established in 1991, and was originally named Investment Information and Credit Rating Agency of India Limited (IICRA India).

It was a joint-venture between Moody's and various Indian commercial banks and financial services companies.

The company changed its name to ICRA Limited, and went public on 13 April 2007, with a listing on the Bombay Stock Exchange and the National Stock Exchange.

ICRA is second largest Indian rating company in term of customer base.

ICRA

Founded : 1991
Headquarters : Gurugram, Haryana
Current Head : Naresh Takkar (CEO)

ANSWER: Pradhan Mantri Suraksha Bima Yojana

Explanation:
Pradhan Mantri Suraksha Bima Yojana

Policy Coverage - The scheme offers to provide you or your family a cover of up to Rs. 2 lacs in case of any mishap, resulting into death or disability of the insured.

In case of death or full disability, you or your family will get Rs. 2 lacs and in case of partial disability, you will get Rs. 1 lac.

Eligibility : Savings bank account holders aged between 18 years and 70 years are eligible to apply for this scheme

Cost : Rs. 12 per year for having an accidental death or disability cover of Rs. 2 lacs under this scheme.

Period : You will remain insured for a period of one year from June 1, 2015 to May 31, 2016.

Next year onwards as well, the risk cover period will remain to be June 1 to May 31.

ANSWER: PMLA Act, 2002

Explanation:
As per the provisions of Prevention of Money laundering Act (PMLA Act, 2002) all financial institutions (Ex: NBFC, Co-operative Bank etc.,) and intermediary which includes a stock broker, sub broker etc., have to maintain a record for all form of transactions.