Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 4

ANSWER: Allahabad Bank

Explanation:
India’s Oldest Joint Stock Bank which is still working is Allahabad Bank. It is also known as India’s oldest public sector bank.

It was established in 1865.

On April 24, 2014, the bank entered its 150^th year of establishment.

Allahabad Bank

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

Note that the Oldest Joint Stock Bank of India was Bank of Upper India established in 1863 and failed in 1913.

ANSWER: Included in the Second schedule to the Reserve Bank of India Act 1934

Explanation:
A scheduled bank, in India, refers to a bank which is listed in the 2^nd Schedule of the Reserve Bank of India Act, 1934.

A scheduled bank is eligible for loans from the Reserve Bank of India at bank rate. They are also given membership to clearing houses.

Banks not under this Schedule are called non-scheduled banks.

ANSWER: Base rate

Explanation:
Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers.

Base rate is decided to enhance transparency in the credit market and ensure that banks pass on the lower cost of fund to their customers.

It is also known as prior probabilities.

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 their 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: 1999

Explanation:
The Insurance Regulatory and Development Authority (IRDA) was set up as an autonomous body under the IRDA Act, 1999.
The IRDA is an autonomous, statutory agency tasked with regulating and promoting the insurance and re-insurance industries in India.
Organization structure of IRDA

Section 4 of the IRDAI Act 1999 specifies the authority's composition.

It is a ten-member body consisting of a chairman, five full-time and four part-time members appointed by the Government of India.

In September 2016, the authority was chaired by T. S. Vijayan and its full-time members were P. J. Joseph, Nilesh Sathe, V. R. Iyer, Pournima Gupte and D. D. Singh.

IRDA - Insurance Regulatory and Development Authority

Founded: 1999
Headquarter: Hyderabad, Telangana
Current Head: T. S. Vijayan (Chairman)

ANSWER: State Bank of Sikkim

Explanation:
State Bank of Sikkim is not regulated by Reserve Bank of India unlike other banks in India.

State Bank of Sikkim is a state-owned banking institution headquartered at Gangtok, Sikkim, India.

The Bank operates within the jurisdiction of the State of Sikkim and in addition to banking services, State Bank of Sikkim handles treasury functions of State Government of Sikkim.

State Bank of Sikkim

Founded: 1968
Headquarters: Gangtok Sikkim, India
Current Head: Mr. K.B. Chamling (Chairman)

ANSWER: ICICI

Explanation:
The country’s largest private lender ICICI Bank has teamed up with private equity major Apollo Global Management to launch an asset reconstruction company.

ICICI and Apollo have signed a memorandum of understanding to set up the ARC, which will acquire debt from lenders and take equity stakes in borrowers.

ICICI Bank

ICICI Bank (Industrial Credit and Investment Corporation of India) is an Indian multinational banking and financial services company headquartered in Mumbai, Maharashtra, India, with its registered office in Vadodara.

In 2014, it was the second largest bank in India in terms of assets and third in term of market capitalization.

It offers a wide range of banking products and financial services for corporate and retail customers through a variety of delivery channels and specialized subsidiaries in the areas of investment banking, life/non-life insurance, venture capital and asset management

• ‘Best Retail Bank in India’ at the Asian Banker International Excellence in Retail Financial Services Awards 2016. ICICI Bank has won this award three years in a row.
• Winner at the ‘Global Safety Awards 2016’ organized by the Energy and Environment Foundation. This award is sponsored by Ministry of Petroleum & Natural Gas and Ministry of Coal, Government of India.


ICICI Bank

Founded: 1994
Headquarters: Mumbai, Maharashtra
Current Head: M. K. Sharma (Chairman), Mrs. Chanda Kochhar (MD & CEO)

ANSWER: Nationalized Commercial Bank

Explanation:
RRBs are sponsored by Nationalized Commercial Banks.

RRBs like any other commercial banks (PSBs or PVT sector banks) are governed by Banking Regulation Act, RBI Act and other guidelines issued by Ministry of Finance, Govt. of India.

Each RRB has a Board of Directors consisting of nine members headed by the Chairman, who generally belongs to the Sponsor Bank.

NABARD is responsible for overall supervision and inspection of the RRBs.

ANSWER: 1972

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 Govt. of India 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)

ANSWER: FMC

Explanation:
On 28 September 2015, the Forward Markets Commission (FMC) was merged with the Securities and Exchange Board of India (SEBI).
Securities and Exchange Board of India (SEBI) was first established in the year 1988 as a non-statutory body for regulating the securities market.

It became an autonomous body by The Government of India on 12 April 1992 and given statutory powers in 1992 with SEBI Act 1992.

The SEBI is managed by its members, which consists of following:

• The chairman who is nominated by Union Government of India.
• Two members, i.e., Officers from Union Finance Ministry.
• One member from the Reserve Bank of India.
• The remaining five members are nominated by Union Government of India, out of them at least three shall be whole-time members.

SEBI - Securities and Exchange Board of India

Founded: 12 April 1992
Headquarters: Mumbai, India
Current Head: U. K. Sinha (Chairman)

ANSWER: Pradhan Mantri Janta Dhan Yojana

Explanation:
Pradhan Mantri Jan-Dhan Yojana is India's National Mission for Financial Inclusion to ensure access to financial services, namely Banking Savings & Deposit Accounts, Remittance, Credit, Insurance and Pension in an affordable manner.

This financial inclusion campaign was launched by the Prime Minister of India Narendra Modi on 28 August 2014.

Guinness World Records Certificate - "The most bank accounts opened in 1 week as a part of financial inclusion campaign is 18,096,130 and was achieved by Banks in India from 23 to 29 August 2014".

What it offers : A savings account with no minimum balance. The RuPay ATM-cum-debit card comes with in-built accident and life covers of Rs 1 lakh and Rs 30,000 respectively.

Eligibility : Anyone belonging to the economically weaker sections of society.

All those working in the unorganized sector, can transfer salaries directly into the accounts of your domestic staff to inculcate a banking habit in them.

ANSWER: Banking Regulation Act, 1949

Explanation:
Banking Regulation Act, 1949

As per Section 5(b) of the Banking Regulation Act, 1949, “banking” means accepting, for the purpose of lending or investment, of deposits of money from the public, repayable on demand or otherwise, and withdraw-able by cheque, draft, and order or otherwise.