Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 3

ANSWER: Presidency Banks

Explanation:

• Bank of Bengal- 1809
• Bank of Bombay – 1840
• Bank of Madras – 1843

These three individual units were called as Presidency Banks. These Presidency banks worked as quasi central banks in India for many years under the British Rule.

In 1921, all presidency banks were amalgamated to form the Imperial Bank of India.

ANSWER: 37 trillion

Explanation:
The SBI merged entity will have an asset base of Rs. 37 Trillion (37 lakh crore).

The negotiations for merging of 5 associate banks - State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State Bank of Travancore and Bharatiya Mahila Bank by acquiring their businesses including assets and liabilities with "SBI" started in 2016.

The merger of these six subsidiaries was approved by Union Cabinet on 15 June 2016.

• State Bank of Patiala (founded 1917)
• State Bank of Mysore (founded 1913)
• State Bank of Bikaner & Jaipur (founded 1963)
• State Bank of Hyderabad (founded 1941)
• State Bank of Travancore (founded 1945)
• Bharatiya Mahila Bank (founded 2013).

ANSWER: Bank Rate

Explanation:
Bank Rate

The bank rate, also known as the discount rate, is the rate of interest charged by the RBI for providing funds or loans to the banking system.

Increase in Bank Rate increases the cost of borrowing by commercial banks which results in the reduction in credit volume to the banks and hence declines the supply of money.

Increase in the bank rate is the symbol of tightening of RBI monetary policy.

As of October 04, 2016, bank rate is 6.75 percent.

ANSWER: Utility services provided by banks

Explanation:
Banks can undertake certain eligible financial services or activities either departmentally or by setting up subsidiaries is called Para Banking.

We could also define Para banking activities as the activities which are done by a Bank apart from its normal day-to-day activities (like deposit, withdrawal etc.).

Para Banking activities that a bank normally involves are Global Debit Card, Global Credit Card, Bancassurance, Life Insurance Products, Non-life Insurance Products, Cash Management.

ANSWER: IRDAI

Explanation:
The Insurance Regulatory and Development Authority of India Member Nilesh Sathe announced that the decision will not be binding on banks who are free to take their call.

What is the tie-up between Bank and Insurance company called as?

The bank insurance model (BIM), also sometimes known as bancassurance, is the partnership or relationship between a bank and an insurance company.

In this model, the insurance company uses the bank sales channel to sell insurance products, an arrangement in which a bank and an insurance company form a partnership so that the insurance company can sell its products to the bank's client base.

ANSWER: State Bank of Patiala

Explanation:
State Bank of Patiala has been conferred “Special Award for Excellence in MSME lending” for its performance in lending to the MSME sector during the year 2013-14 and 2014-15.

State Bank of Patiala

State Bank of Patiala, founded in 1917, is associate bank of the State Bank Group.

Presently, State Bank of Patiala has a network of 1445 service outlets, including 1314 branches, in all major cities of India, but most of the branches are in the Indian states of Punjab, Haryana, Himachal Pradesh, Rajasthan, Jammu & Kashmir, Uttar Pradesh, Madhya Pradesh, Delhi, Gujarat and Maharashtra.

Founded – 1917
Headquarters -Patiala

ANSWER: Virtual Banking

Explanation:
Virtual Banking is the provision of accessing the banking and related services online.

Any financial institution that offers the traditional banking services online is termed as a virtual bank.

Virtual banking enables a customer to pay bills online, check account details, secure loans, withdraw and deposit money anytime as per the convenience.

Some common forms of virtual banking are, ATMs, use of magnetic ink character recognition code (MICR), Electronic clearing service scheme, electronic fund transfer scheme, RTGS, computerized settlement of clearing transactions, centralized fund management schemes, etc.

ICICI Bank was the first Indian bank to provide internet banking facility.

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.

RRBs were owned by the Central Government, the State Government and the Sponsor Bank (There were five commercial banks, Punjab National Bank, State Bank of India, Syndicate Bank, United Bank of India and United Commercial Bank, which sponsored the regional rural banks).

Stake in RRBs

• Central Govt. – 50%
• State Govt. – 15%
• Sponsor Bank – 35%

ANSWER: IDRBT

Explanation:
Institute for Development & Research in Banking Technology is a banking research institute established by Reserve Bank of India in 1996.

It is located in Hyderabad, India.

Formation :
The RBI formed a committee on "Technology Upgradation in the Payment Systems".

The committee recommended a variety of payment applications which can be implemented with appropriate technology upgrades and development of a reliable communication network.

As a result of the committee's recommendations the institute was established.

• IDRBT was established with the aim of providing the operational service support in information technology to banks and financial institutions.
• IDRBT is also an academic institution that offers a range of academic and research programmes.
• IDRBT also offers consultancy in banking technology and financial institutions.

ANSWER: Mrs. Alice G Vaidyan

Explanation:
The General Insurance Corporation of India (GIC) was incorporated on 22 November 1972 (under the Companies Act, 1956) as a private company limited.

General insurance business was nationalized by the (GOI) through the General Insurance Business (Nationalization) Act (GIBNA) of 1972.

After the process of mergers, GIC was re-organized with four fully owned subsidiary companies:

National Insurance Company Limited,
New India Assurance Company Limited,
Oriental Insurance Company Limited,
United India Insurance Company.

GIC - General Insurance Corporation of India

Established: 22 November, 1972
Headquarters: Mumbai, India
Current Head: Alice Vaidyan (Chairman & Managing Director)

Similarly,
T.S. Vijayan – Chairman (IRDA)
Anuj Agrawal – MD & CEO (Bajaj Allianz General Insurance)
Neelesh Garg – MD & CEO (Tata AIG General Insurance)

ANSWER: Bank Board Bureau

Explanation:
The government decided to set up a Bank Board Bureau, BBB through which two dozen state-run banks would be monitored for key performance indicators.

The BBB will start the functioning from the 1st of April 2017.

Banks Board Bureau is an autonomous body of Union Government of India tasked to improve the governance of Public Sector Banks, recommend selection of chiefs of government owned banks and financial institutions and to help banks in developing strategies and capital raising plans.

Vinod Rai is the Chairman of the Mumbai based Bureau.

ANSWER: 1949

Explanation:
The failure of about 600 banks in various states during 1913-1917 emphasized the need for the regulation and co-ordination of commercial banks and thus Banking Regulation Act was passed in 1949.

The Banking Regulation Act, 1949 is legislation in India that regulates all banking firms in India.

Initially, the law was applicable only to banking companies. But, 1965 it was amended to make it applicable to cooperative banks and to introduce other changes.

The Act provides a framework using which commercial banking in India is supervised and regulated. The Act supplements the Companies Act, 1956. Primary Agricultural Credit Society and cooperative land mortgage banks are excluded from the Act.