Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 6

ANSWER: 1926

Explanation:
The Hilton Young commission submitted its report in the year 1926.

The Reserve Bank of India was set up based on the recommendations of the Royal Commission on Indian Currency and Finance also known as the Hilton-Young Commission.

ANSWER: 50%, 15%, 35%

Explanation:
Each RRB is owned by three entities and their shares are as follows -

• Central Government – 50%
• State Government – 15%
• Sponsor Bank – 35%

RRBs are different from commercial banks in following aspects -

• Ownership – 3 owners (Central Govt., State Govt., Sponsor Bank)
• Regulation – Regulated by NABARD. Other directly by RBI.
• Law – RRB have separate law behind them, Regional Rural Banks Act, 1976.

ANSWER: Cash Reserve Raio

Explanation:
Cash Reserve Ratio is a certain percentage of bank deposits which banks are required to keep with RBI in the form of reserves or balances.

Higher the CRR with the RBI, lower will be the liquidity in the system and vice versa.

RBI is empowered to vary CRR between 15 percent and 3 percent.

As of 4 October 2016, the CRR is 4.00 percent.

ANSWER: Indian Gold Council

Explanation:
The Money market in India is the money market for short-term and long-term funds with maturity ranging from overnight to one year in India.

The Indian money market consists of the unorganized sector : moneylenders, indigenous bankers and unregulated Non-Bank Financial Intermediaries (e.g. Finance Companies, Chit funds, Nidhi);

Organized sector : Reserve Bank of India, private banks, public sector banks, development banks and other Non-Banking Financial Companies (NBFCs) such as Life Insurance Corporation of India (LIC), the International Finance Corporation, IDBI, and the co-operative sector.

In our country, Money Markets are regulated by both RBI and SEBI.
SEBI – Securities and Exchange Board of India

Founded : 12 April, 1992
Headquarter : Mumbai, Maharashtra
Current Head : Upendra Kumar Sinha (Chairman)

ANSWER: Securities and Exchange Board of India (SEBI)

Explanation:
As per the guidelines of the Securities and Exchange Board of India (SEBI), the Government picked up the entire SBI shares held by the RBI at a price of Rs. 1,130.35 a share.

SEBI is the regulatory authority for the securities market in India.

Powers -

For the discharge of its functions efficiently, SEBI has been vested with the following powers:

• to approve by - laws of stock exchanges.
• to require the stock exchange to amend their by – laws.
• inspect the books of accounts and call for periodical returns from recognized stock exchanges.
• inspect the books of accounts of financial intermediaries.
• compel certain companies to list their shares in one or more stock exchanges.
• registration of brokers.

ANSWER: Dena Bank

Explanation:
Dena Bank headquartered in Mumbai, is owned by the Government of India.

Dena Bank was founded on 26 May 1938 by the family of Devkaran Nanjee under the name Devkaran Nanjee Banking Company.

It adopted its new name, Dena Bank (Devkaran Nanjee) when it was incorporated as a public company in December 1939.

Dena Bank

Founded - 26 May 1938; 78 years ago
Headquarter - Mumbai, Maharashtra, India
Current Head - Shri Ashwani Kumar (Chairman & MD)

ANSWER: Kotak Bharat

Explanation:
It is the ‘inclusive digital banking’ app launched by KMB that is primarily targeted to benefit customers in the under-banked and un-banked regions, who can access its services in their preferred language. One major benefit of this app is that it requires no internet connectivity.


Kotak Mahindra Bank

Kotak Mahindra Bank is an Indian private sector banking headquartered in Mumbai, Maharashtra, India.

In February 2003, Reserve Bank of India (RBI) gave the license to Kotak Mahindra Finance Ltd., the group's flagship company, to carry on banking business.

In 2016, it was the third largest private bank in India by market capitalization.

In 2014, Kotak Bank acquired ING Vysya Bank for a deal valued at ?15,000 crores (US$2.2 billion).

Post the merger, ING Group which controlled ING Vysya Bank will own 7% share in Kotak Mahindra Bank.

KMB - Kotak Mahindra Bank

Founded - 1985 (as Kotak Mahindra Finance Ltd)
Headquarter - Mumbai, Maharashtra
Current Head - Uday Kotak (Founder & Executive Vice Chairman & MD)

ANSWER: Chakrabarty Committee

Explanation:
The Government had constituted a Committee in September 2009 (Chairman : Dr. K. C. Chakrabarty) to study the current level of Capital-to-Risk-Weighted Assets Ratio (CRAR) of RRBs.

The Committee submitted its Report to the Government of India on April 30, 2010.

The Committee was also required to suggest the required capital structure for RRBs given their business level, so that their CRAR is sustainable and provides for future growth and compliance with regulatory requirements.

Capital Adequacy Ratio (CAR), also k/as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk.

It is a measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures.

ANSWER: CIBIL

Explanation:
Credit Information Bureau Limited is the first Credit Information Company in India.

TransUnion CIBIL Limited (Formerly : Credit Information Bureau (India) Limited) is India’s first Credit Information Company (CIC) founded in August 2000.

CIBIL

Founded : August 2000; 16 years ago
Headquarter : Mumbai, India
Current Head : M.V.Nair (Chairman), Satish Pillai (Managing Director)

How it works?

The Credit Information Report (CIR) and CIBIL TransUnion Score are used in the loan approval process.

The CIR and Credit Score help loan providers identify consumers who are likely to be able to pay back their loans.

An individual with a credit score above 750 is perceived as a responsible borrower.

ANSWER: BSE

Explanation:
Bombay Stock Exchange (BSE) is Asia’s first stock exchange.

It claims to be the world’s fastest stock exchange, with a median trade speed of 6 microseconds.

The Bombay Stock Exchange (BSE) is located at Dalal Street, Mumbai (formerly Bombay).

It was established in 1875.

BSE is the world's 11th largest stock exchange and more than 5500 companies are publicly listed on the BSE.

BSE

Founded : 9 July 1875
Headquarter : Mumbai, India
Current Head : Ashish Kumar Chauhan (MD & CEO)

ANSWER: Rs 65876 crore

Explanation:
The Reserve Bank of India will transfer Rs. 65876 crore as surplus to the government for FY’16, Rs 20 crore less that previous year’s Rs 65896 crore.

The surplus approved by the Reserve Bank of India board could be used to fund the centre’s fiscal deficit.

ANSWER: April 5, 2006

Explanation:
The Reserve Bank of India (RBI) notified the draft regulations relating to the Credit Information Companies (Regulation) Act, 2005 on April 5, 2006.

Among the major features of the regulations is the inclusion of stock brokers and telecommunication companies in the category of 'specified users' of services of credit information companies.