Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 5

ANSWER: 1881

Explanation:
The first bank of limited liability managed by Indians was Oudh Commercial Bank founded in 1881. This bank failed in 1958.

Subsequently, Punjab National Bank was established in 1894 in Lahore.

It was the First Bank which was purely managed by the Indians.
The Punjab national Bank has not only survived till date but also is one of the largest banks in India.

PNB - Punjab National Bank

Founded : 19 May, 1894
Headquarter : New Delhi
Current Head : Usha Ananthasubramanian (MD & CEO)

ANSWER: NABARD

Explanation:
Regional Rural Banks (also RRBs) are local level banking organizations operating in different states of India.

They have been created with a view to serve primarily the rural areas of India.

Regional Rural Banks are regulated by National Bank for Agriculture and Rural Development (NABARD).

As of March 2014, the number of RRBs has been reduced to 57.

NABARD - National Bank for Agriculture and Rural Development

Headquarters : Mumbai, Maharashtra, India
Established : 12 July 1982
Current Head : Dr. Harsh Kumar Bhanwala (Chairman)

ANSWER: More liquidity in the market

Explanation:
Market liquidity is a market's ability to facilitate an asset being bought or sold quickly without having to drastically change its price i.e. stable market.

Bank rate is the interest rate at which banks borrows loan from RBI.

RBI reduces the bank rate when supply of the money is low in the country.

Now banks are getting loans at cheaper rate of interest, so banks will start giving loans at lower interest rates, supply of the money will go up in the country.

Purchasing power of individual will increase, in result demand for the goods will increase, supply will meet the demand.

Reducing Bank rate is one of the Quantitative measure in Monetary policy.

ANSWER: Wholesale Banking

Explanation:
Wholesale banking is the provision of services by banks to organizations, such as mortgage brokers, large corporate clients, mid-sized companies, real estate developers and investors, international trade finance businesses, institutional customers (such as pension funds and government entities/agencies), and services offered to other banks or other financial institutions.

Wholesale banks mainly engage in:

• Finance wholesaling
• Underwriting
• Market making
• Consultancy
• Mergers and acquisitions
• Fund management

Retail banking is also known as Consumer Banking is the provision of services by a bank to individual consumers.

The term is generally used to distinguish these banking services from investment banking, commercial banking or wholesale banking.

It may also be used to refer to a division or department of a bank dealing with retail customers.

Typical products offered by a retail bank include:

• Transactional accounts
• Current accounts, Savings accounts
• Debit cards, ATM cards, Credit cards
• Traveler's cheque
• Mortgages, personal loans
• Home equity loans
• Certificates of deposit/Term deposits

ANSWER: SEBI

Explanation:
The Securities and Exchange Board of India (SEBI) is the regulator for the securities market in India.

Controller of Capital Issues was the regulatory authority before SEBI came into existence; it derived authority from the Capital Issues (Control) Act, 1947.

Organization structure of SEBI

• 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 - The Securities and Exchange Board of India

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

ANSWER: Central Bank of India

Explanation:
Central Bank was the first public bank to introduce credit card in India.

Central Bank of India, a government-owned bank, is one of the oldest and largest commercial banks in India.

It is based in Mumbai which is the financial capital of India and capital city of state of Maharashtra.

At present, Central Bank of India has overseas office at Nairobi, Hong Kong and a joint venture with Bank of India, Bank of Baroda, and the Zambian government.

The Zambian government holds 40 per cent stake and each of the banks has 20 per cent. Recently it has also opened a representative office at Nairobi in Kenya.

CBI – Central Bank of India

Founded - 21 December 1911; 105 years ago
Headquarter - Mumbai, Maharashtra, India
Current Head - Shri. Rajeev Rishi (Chairman & MD)

ANSWER: Mumbai

Explanation:
IndusInd Bank has its headquarter in Mumbai, India.

IndusInd Bank Limited is a new generation bank, established in 1994.

The bank offers commercial, transactional and electronic banking products and services.

IndusInd Bank is the first among the new-generation private banks in India.

The bank started its operations with a capital amount of Rs.1 billion among which Rs. 600 million was donated by the Indian Residents and Rs. 400 million was raised by the Non-Resident Indians.

According to the bank, its name is derived from the Indus Valley Civilization.

IndusInd Bank

Founded - April 1994
Headquarters - Mumbai, Maharashtra
Current Head - Romesh Sobti (CEO & MD)

ANSWER: Both A & B

Explanation:
The services of RRBs are not available in the states of Goa and Sikkim.

They are not available in the Union Territories also.

Uttar Pradesh has the highest number of 36 RRBs, followed by, Madhya Pradesh with 19 and Bihar with 16 RRBs.

In terms of branch network, Uttar Pradesh is again at top with 2850 branches followed by Bihar with 1487 and Andhra Pradesh with 1124 branches.

The lowest number of branches has been found in Nagaland with 9 only.

ANSWER: 1818

Explanation:
The first life insurance company started functioning in India was Oriental Life Insurance Company.

The Oriental Life Insurance Company, the first company in India offering life insurance coverage, was established in Calcutta in 1818 by Anita Bhavsar.

• Surendranath Tagore had founded Hindustan Insurance Society, which later became Life Insurance Corporation.
• The Bombay Mutual Life Assurance Society, formed in 1870, was the first native insurance provider.

Other insurance companies established in the pre-independence era included:

• Postal Life Insurance (PLI) was introduced on 1 February 1884
• Bharat Insurance Company (1896)
• United India (1906)
• National Indian (1906)
• National Insurance (1906)
• Co-operative Assurance (1906)
• Hindustan Co-operatives (1907)
• Indian Mercantile
• General Assurance
• Swadeshi Life (later Bombay Life)
• Sahyadri Insurance (Merged into LIC, 1986)

ANSWER: NSE

Explanation:
National Stock Exchange (NSE) was the first exchange in the country to provide a modern, fully automated screen-based electronic trading system.

NSE was established in 1992 as the first demutualized electronic exchange in the country.

NSE was also instrumental in creating the National Securities Depository Limited (NSDL) which allows investors to securely hold and transfer their shares and bonds electronically.

NSE offers trading in the following segments:

Equities -

• Indices
• Mutual Funds
• Exchange Traded Funds
• Initial Public Offerings
• Security Lending and Borrowing Scheme

Derivatives -

• Equity Derivatives (including Global Indices like CNX 500, Dow Jones and FTSE )
• Currency Derivatives
• Interest Rate Futures

Debt -

• Corporate Bonds

NSE

Founded : 1992
Headquarter : Mumbai, India
Current Head : Ashok Chawla (Chairman)

ANSWER: Term insurance

Explanation:
Term insurance

What it offers : A pure protection term insurance cover which pays Rs 2 lakh to dependents in the event of the policyholder's death.

Cost : Premium of Rs 330 a year.

Eligibility : Anybody in the age band of 18-70 years who has a savings account in a bank that offers this scheme.

ANSWER: RBI Governor

Explanation:
RBI Governor

The Reserve Bank derives its role in currency management from the Reserve Bank of India Act, 1934.

At present, notes in India are issued in the denomination of Rs.5, Rs.10, Rs.20, Rs.50, Rs.100, Rs.500 and Rs.1000. These notes are called bank notes as they are issued by the Reserve Bank of India (Reserve Bank).

Under Section 22 of the Reserve Bank of India Act, RBI has sole right to issue currency notes of various denominations except one rupee notes.

The One Rupee note is issued by Ministry of Finance and it bears the signatures of Finance Secretary, while other notes bear the signature of Governor RBI.