Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 9

ANSWER: 1949

Explanation:
The Banking Regulation Act, 1949 is a 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 co-operative banks and to introduce other changes.

ANSWER: 6

Explanation:
There are six development banks are there in India.

They are :

• ICICI - Industrial Credit and Investment Corporation of India
• IDBI - Industrial Development Bank of India
• SIDBI - Small Industries Development Bank of India
• EXIM Bank - Export-Import Bank of India
• NHB - National Housing Bank
• NABARD - National Bank for Agriculture and Rural Development

The National Development Bank is a finance institution, created by a country's government, that provides financing for the purposes of economic development of the country.

• Provides Long and Short Term Loans
• Helps in Providing economic growth of the country
• Provides finance to new business
• It works on various fields such as agriculture, housing and other sectors
• It does not accept deposits

ANSWER: Repo Rate

Explanation:
Repo (Repurchase) rate also known as the benchmark interest rate is the rate at which the RBI lends money to the banks for a short term.

When the repo rate increases, borrowing from RBI becomes more expensive.

If RBI wants to make it more expensive for the banks to borrow money, it increases the repo rate similarly, if it wants to make it cheaper for banks to borrow money it reduces the repo rate.

Reverse Repo rate is the short-term borrowing rate at which RBI borrows money from banks.

The Reserve bank uses this tool when it feels there is too much money floating in the banking system.

An increase in the reverse repo rate means that the banks will get a higher rate of interest from RBI.

Thus, banks prefer to lend their money to RBI which is always safe instead of lending it others (people, companies etc.) which is always risky.

Repo Rate signifies the rate at which liquidity is injected in the banking system by RBI, whereas Reverse Repo rate signifies the rate at which the central bank absorbs liquidity from the banks.

ANSWER: Branch Banking

Explanation:
Branch banking is engaging in banking activities at facilities away from a bank's home office i.e. branches.

Branch banking allows a financial institution to expand services to areas outside of the home location.

This can be a more cost effective approach as not all locations are required to offer the same levels of services as the home location, allowing smaller branches to provide key services while larger locations can provide the additional services.

Financial innovation such as internet banking, ATM etc., will greatly influence the future of branch banking by reducing the need to maintain extensive branch networks to service consumers.

SBI is the leading bank in India when it comes to number of branches and ATMs.

The bank has over 17,000 branches with more than 27,000 ATMs.

ANSWER: NABARD

Explanation:
NABARD stands for National Bank for Agriculture and Rural Development.

NABARD is set up as an apex Development Bank by the Government of India with a mandate for facilitating credit flow for promotion and development of agriculture, cottage and village industries.

NABARD is active in developing financial inclusion policy and is a member of the Alliance for Financial Inclusion.

In November 2016, Government has allowed NABARD to disburse Rs. 21,000 crore to cash-starved farmers, helping them sow winter crops like wheat ahead of the sowing season

National Bank for Agriculture & Rural Development (NABARD)

Founded : 12 July 1982
Headquarter : Mumbai, Maharashtra
Current Head : Dr. Harsh Kumar Bhanwala (Chairman)

ANSWER: IDBI

Explanation:
IDBI Bank is an Indian government-owned financial service company, formerly known as Industrial Development Bank of India, headquartered in Mumbai, India.

It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry.

It is currently 10^th largest development bank in the world in terms of reach, with 3350 ATMs, 1853 branches, including one overseas branch at Dubai and 1382 centers.

IDBI Bank

Founded : July 1964; 52 years ago
Headquarter : Mumbai India
Current Head : Mr. Kishor Kharat (MD & CEO)

ANSWER: City Union Bank

Explanation:
City Union Bank

The Kumbakonam Bank Limited, as it was at first called, was incorporated as a limited company on 31^st October 1904.

The bank initially preferred the role of a regional bank in the Thanjavur District Tamil Nadu.

In December 2006, Larsen & Toubro bought 10% of the bank.

The bank celebrated its 110^th years of service on 31^st October 2014.

CUB - City Union Bank

Founded : 1904
Headquarter : Kumbakonam, Tamil Nadu, India
Current Head : Dr. N. Kamakodi (MD & CEO)

ANSWER: Karnataka Vikas Grameen Bank

Explanation:
Karnataka Vikas Grameen Bank

S Ravindran, Chairman, KVGB, received the award from Sameer Kochhar, chairman of Skoch Group, in Hyderabad.

KVGB, which operates in nine districts of Karnataka covering 57 talukas, has brought 28 lakh people under Pradhan Mantri Jeevan Jyoti Bima Yojna, PM Suraksha Bima Yojna and PM Jan Dhan Yojna.

ANSWER: Sushil Chandra

Explanation:
Sushil Chandra

Senior Indian Revenue Service (IRS) officer Sushil Chandra is Chairman of the Central Board of Direct Taxes (CBDT).

Chandra, a 1980-batch IRS officer, has replaced Rani Singh Nair (who retired from service).

Chandra had been Member (Investigation) in CBDT since December 2015.

The CBDT is a statutory authority functioning under the Central Board of Revenue Act, 1963.

It is India’s official FATF unit (Financial Action Task Force).

Organizational Structure

The CBDT is headed by CBDT Chairman and also comprises of six members, all of whom are Special Secretary to Government of India.

• Member (Income Tax)
• Member (Legislation and Computerization)
• Member (Revenue)
• Member (Personnel & Vigilance)
• Member (Investigation)
• Member (Audit & Judicial)

The CBDT Chairman and Members of CBDT are selected from Indian Revenue Service (IRS).

ANSWER: Credit Information Companies (Regulation) Act of 2005

Explanation:
A Credit Bureau is governed by the Credit Information Companies (Regulation) Act of 2005.

A credit bureau is a collection agency that gathers account information from various creditors and provides that information to a consumer reporting agency in the United States,

• a credit reference agency in the United Kingdom;
• a credit reporting body in Australia;
• a credit information company (CIC) in India;
• a credit registry in the Philippines.

It is not the same as a credit rating agency; it collects and gathers information from different sources.

ANSWER: Scheme for Sustainable Structuring of Stressed Assets

Explanation:
Under the ‘Scheme for Sustainable Structuring of Stressed Assets’ (S4A), RBI allowed banks to take equity in debt laden firms permitting them to split total loans of struggling companies into sustainable and unsustainable based on the cash flows of the projects.

ANSWER: CCIL

Explanation:
The CCIL is the clearing agency for Government securities.

It acts as a Central Counter Party (CCP) for all transactions in Government securities by interposing itself between two counter parties.

The Clearing Corporation of India limited (CCIL) was set up in April 2001.

The CCIL clears all transactions in government securities, and repurchase agreements (repos) reported on the Negotiated Dealing System.

CCIL

Founded : April 2001
Headquarter : Mumbai, India
Current Head : Mr. R Sridharan (MD)