Banking Awareness Test Questions - Set 9

ANSWER: 21st July’15

Explanation:
Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang Xiong and the bank's President K V Kamath attended the opening ceremony. Kamath will be the bank's President for the first five years.

NDB was step up for infrastructure funding in the emerging economies formally

ANSWER: Jaat

Explanation:
A bench of Justices Ranjan Gogoi and R F Nariman said that the issue has already been decided and there was no vested right in favour of Jaat applicants. The apex court on March 17 had set aside the erstwhile UPA government's notification to include Jats in the central list of OBCs to accord quota benefits to them.

ANSWER: SEBI

Explanation:
The Securities and Exchange Board of India has cancelled Sahara asset Management Company’s license. The market regulator in its order said that the company is not fit and proper entity to carry out the business of mutual fund. It said, Sahara’s fund management license would stand cancelled after 60 days from the date of the order. It has directed Sahara AMC not to take any new subscription from the investors including existing investors in systematic investment plans and also not to levy any penalties on the investors for not depositing the instalments.

ANSWER: Asian Development Bank

Explanation:
The loan – Supporting National Urban Health Mission – will reinforce ongoing government efforts under the NUHM to develop health systems in urban areas that can deliver quality health services and that reach the urban poor and vulnerable. It will focus on strengthening primary health care and also promote better coordination between health and urban sectors and opportunities for public-private partnerships.

NUHM is aimed at improving the health status of the country’s urban population.

ANSWER: ICICI Bank

Explanation:
This move will help customers raise the eligible amount by up to 20 percent and increase the tenure by up to seven years. It will expand the credit amount and increase the tenure upto 67 years of age for an additional fee as well.

ANSWER: Bandhan Bank

Explanation:
Bandhan is the first micro-finance company to transform into a bank. Reserve Bank of India has turned liberal in doling out banking licenses to entities of different capabilities. It has just issued 11 in-principle licenses to set up payments banks. Bandhan Bank will primarily cater to the unorganized sector like daily wage earners and women running small businesses -- the segments that had been its borrowers for a decade. As a bank, it will also offer savings, remittance and insurance services and try to raise its stake in the bottom of the pyramid customers.

ANSWER: Salaried Tax Payers, Pensioners & Differently-abled Persons

Explanation:
Salaried tax payers and pensioners with annual income upto five lakh rupees and with no refund claim can file their returns at these counters upto 31st Aug’15. However, the income limit of 5 lakh rupees and no claim refund provision will not apply to tax payers over the age of 80 years deriving salary or pension income. There will be special facilitation counters for senior citizens and differently - abled persons. An official release said similar facilitation counters are being set up in other metro cities based on the local requirements.

ANSWER: AP Shah Committee

Explanation:
The AP Shah committee on minimum alternate tax (MAT) has recommended to the finance ministry that the levy shouldn't be imposed for the period preceding April 1, 2015. The panel, headed by Law Commission Chairman A P Shah, was set up to resolve the dispute between FIIs and the government after notices were served to 68 FIIs by the Income Tax Department demanding Rs 602 crore as MAT dues.

ANSWER: R Gandhi

Explanation:
A report of the High Powered Committee on UCBs headed by RBI Deputy Governor R Gandhi however clarified that the conversion will not be compulsory for large UCBs and they can continue the way they operate currently in terms of balance sheet or asset size. In order to minimise the systemic risk, the committee has recommended that large UCBs convert themselves into commercial banks. The panel further said smaller UCBs with business size of less than 20,000 crore rupees willing to convert to Small Finance Banks can apply to the Reserve Bank for conversion. It has also suggested that licenses may be issued to financially sound and well-managed cooperative credit societies having a minimum track record of 5-years to operate as UCBs. RBI has invited suggestions and comments from public on this report by 18th of next month.

ANSWER: 11

Explanation:
A payment bank is different from conventional banks as it cannot lend to its customers. It is allowed to take deposits, allow remittances and provide simple financial products. The central bank has approved applications of National Securities Depository Limited (NSDL), Reliance Industries , Aditya Birla Nuvo , Airtel M Commerce, Department of Posts , Fino PayTech, Tech Mahindra, Vodafone m-pesa, Cholamandalam Distribution Services, PayTM, and Sun Pharma.

ANSWER: Bangladesh

Explanation:
The MoU was signed during a maiden meeting of the Joint Task Force on Fake Currency Notes (JTFFC) in Dhaka.

ANSWER: Axis Bank

Explanation:
The bank launched contactless multi-currency forex cards in partnership with Visa - the payments gateway company. Axis Bank would be the first bank to issue multi-currency contactless cards or 'tap and pay' cards which can be loaded in 15 currencies such as Swiss Franc and Hong Kong dollar besides the three main currencies - US dollar, Euro and British Pound.

ANSWER: P S Jayakumar

Explanation:
This is the first time the government has chosen the candidate from the private sector to head the Public Sector Banks.

ANSWER: Rakesh Sharma

Explanation:
Rakesh Sharma is chosen from private sector to head the Public Sector Bank.

ANSWER: Indradhanush

Explanation:
Indradhanush is a seven pronged plan that includes appointments, capitalisation, de-stressing PSBs, empowerment, framework of accountability and governance reforms.

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 next year and the selection of its member will start in the next six months.

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.

ANSWER: 25%

Explanation:
Last year, the apex bank had transferred 52,679 crore rupees of its surplus profit to the Government.

ANSWER: NABARD

Explanation:
No explanation is available for this question!

ANSWER: UCO Bank

Explanation:
The Gross Non-performing Assets as a percentage of total advances increased to 7.3 percent during June quarter, from 4.3 percent in the same period last fiscal. Net non-performing assets also rose to 4.5 percent against 2.3 per cent during the same quarter last year.

ANSWER: Urban Areas

Explanation:
In a notification on its website, RBI said banks can “shift, merge or close all branches except rural branches and sole semi-urban branches at their discretion”. Shifting, merging or closing a branch in a rural area or a sole branch in a semi-urban area would, however, continue to require prior permission from RBI.

ANSWER: Enable Cheque collections on Electronic Mode & Proposed to change the definition of Cheques

Explanation:
The proposed law seeks to amend the Negotiable Instruments Act of 1881 in tune with the modern day requirements for enabling electronic mode of operations. Nearly 40 thousand cheque bouncing cases are pending with High Courts and about 19 lakh cases in lower courts across the country.

ANSWER: 5000 Crore

Explanation:
The Employment Provident Fund Organisation - EPFO will invest around Rs 5,000 crore this fiscal through SBI Mutual Fund's two index linked ETFs, one to the BSE's Sensex and the other to NSE's Nifty. The decision comes after the labour ministry allowed EPFO to invest 5 to 15 % of its incremental corpus in equities through ETFs. Asked why EPFO was starting off with just 5% of the corpus when it has the mandate for 15%, EPFO Commissioner K.K. Jalan said that the organisation had decided to go slow. Adding that investing through ETF route reduces risk, Mr. Jalan said fund allocation could increase to as much as Rs 70 billion to Rs 80 billion next year and that the organisation will also consider investing in other ETFs. Currently, EPFO has 8.5 trillion rupees under management, most of it invested in government bonds.

ANSWER: Tirumala Venkateswara Temple

Explanation:
Tirumala Venkateswara Temple, also known as Tirupati Balaji, is considered to be one of India's richest temple and receives crores of rupees, precious metals and stock certificates in donations every year. The temple, as of August 2014, had around 5,000kg of gold deposited with various banks in India.

ANSWER: S K Roy

Explanation:
Roy will head the three-member Executive Committee (EC), a key body of the Council, for a period of three years.

ANSWER: Kotak Bharat

Explanation:
It is the ‘inclusive digital banking’ app launched by KMB that is primarily targetted 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.

ANSWER: 70,000 Crore

Explanation:
No explanation is available for this question!

ANSWER: Project Insight

Explanation:
For this project ministry recently floated a tender worth over Rs. 150 crore to buy data analytics software and related infrastructure. It will primarily track the Permanent Account Numbers (PAN) being quoted on financial transactions and tally them with income tax filings.

ANSWER: BNP Paribas

Explanation:
Mumbai based Sharekhan has been valued at Rs. 2200 Crore.

ANSWER: More than 900

Explanation:
Suspecting tax evasion of at least 5,000 to 6,000 crore rupees, Securities and Exchange Board of India (SEBI) has clamped down on a large number of organised syndicates who had set up shops to convert black money into legitimate-looking funds through the stock market platform.

ANSWER: BSE

Explanation:
BSE had launched an enhanced module for pledge reporting wherein the NBFCs shall be able to submit quarterly reporting of pledged data. This is in line with RBI's recent initiative vide its circular dated April 10, 2015. Currently, more than 65 NBFCs are using this platform on BSE. So far, the total value of promoters' pledged holding stands at nearly 2 lakh crore rupees on the exchange. On August 21, 2014, the central bank had directed NBFCs with asset size of 100 crore rupees and above to report online to stock exchanges, information on the shares pledged in their favour, by borrowers for availing loans. In its circular in April this year, the RBI had asked NBFCs to report data on pledged shares on a quarterly basis, among others.

ANSWER: To ensure availability of crop loans of up to 3 lakh to farmers at 7% per annum

Explanation:
The decision to continue interest subvention on short term crop loans was taken by the Union Cabinet chaired by Prime Minister Narendra Modi for the fiscal 2015-16.

ANSWER: Deepak Mohanty

Explanation:
Deepak Mohanty is the RBI Executive Director. The Committee will work to spread the reach of financial services to unbanked population. The committee was constituted in reference to Prime Minister Narendra Modi’s address on the occasion of the Reserve Bank’s 80th anniversary wherein he asked the Bank to take the lead in encouraging financial institutions and to set a medium-to-long term target for sustainable financial inclusion.

ANSWER: 2nd Saturday of the month & 4th Saturday of the month

Explanation:
The Reserve Bank has said that the Real-time gross settlement - RTGS system will not be operated on second and fourth Saturdays with banks observing public holiday on those days. In a notification issued from Mumbai, RBI said that the system will operate for full days on working Saturdays of the month. The minimum amount to be remitted through RTGS is Rs 2 lakh while there is no upper ceiling.

ANSWER: SBI & ICICI Bank

Explanation:
The D-SIB framework requires RBI to disclose the names of banks designated as D-SIBs every year in August starting from August 2015. Now it is to be interpreted as that these banks are so integral to the economy that their failure would have to be prevented at any cost.

ANSWER: Ratan P Watal

Explanation:
He is a 1978-batch IAS officer of the Andhra Pradesh cadre.

ANSWER: Punjab National Bank

Explanation:
Rating agency Fitch Ratings downgraded PNB's Viability Rating by one notch to 'bb' on the growing risk to the bank's capital position from a mounting stock of stressed assets.

ANSWER: Marginal cost of funds Methodology

Explanation:
The new methodology is aimed at bringing uniformity among Base Rate of banks so that they will be more sensitive to any changes in policy rates of the RBI like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), etc. At present, banks are following different methodologies in computing their Base Rate like on the basis of average cost of funds, marginal cost of funds or blended cost of funds (liabilities).

ANSWER: Rs.5

Explanation:
RBI said in a release that the coins will be legal tender as provided in the Coinage Act 2011. Existing coins in this denomination will also continue to be legal tender. The new coin in the obverse will bear Lion Capital of Ashoka Pillar in the centre with Satyamev Jayate inscribed below it, the release said.