Banking awareness test - Set 1

ANSWER: April 1, 1935

Explanation:
On April 1, 1935 the Reserve Bank of India, which is the central bank of this country, was established. It was originally started as a shareholders' bank with a share capital of Rs. 5 crore divided into shares of Rs. 100 each, fully paid-up. But since January, 1949 the Reserve Bank has been nationalised and it is now purely a concern of the State. The Government of India holds the entire share capital of the bank which has been acquired by payment of compensation to the shareholders.

ANSWER: State Bank of India

Explanation:
No explanation is available for this question!

ANSWER: All the above

Explanation:
The Reserve Bank of India, as the central bank of the country, functions as the sole bank with the right of issuing paper notes, it acts as banker to the Government, it is the banker to other bank and it regulates the flow of credit.

ANSWER: Mandate of the depositor in favor of a close relative who can claim the amount on death of the depositor

Explanation:
No explanation is available for this question!

ANSWER: May 26, 2006

Explanation:
The Reserve Bank of India (RBI) published the draft guidelines for building grievance redressal mechanism within NBFCs (Non-Banking Financial Companies) on May 26, 2006. The grievance redressal mechanism would be used to resolve disputes arising out of the decisions of the lending institutions' functionaries. Guidelines have also been outlined by the RBI for putting in place the Fair Practices Codes by all NBFCs.

ANSWER: State Bank of Saurashtra

Explanation:
State Bank of Saurashtra was a government-owned bank in India. It was one of the seven Associate Banks of the State Bank of India, with which it merged on 13 August 2008. At the time of the merger, the Bank had a network of 423 branches spread over 15 states and the Union Territory of Daman and Diu.

ANSWER: June, 2008

Explanation:
NABARD, with a paid-up capital of Rs.2,000 crore, was set up as an apex development bank with the mandate of facilitating credit flow for promotion and development of agriculture, small-scale industries, cottage and village industries, handicrafts and other rural crafts. It was the Narasimhan Committee that recommended the transfer of RBI's stake in State Bank of India, Nabard and NHB to the government to differentiate the central bank's role as the owner of banks and the sector regulator.

ANSWER: January, 1982

Explanation:
In January, 1982 recognising the importance of exports in India's development programmes, the Government of India set up the Export-Import Bank of India as a statutory corporation owned completely by the Union Government.

ANSWER: July, 1988

Explanation:
The National Housing Bank, the apex institution of housing finance in India, is a wholly-owned subsidiary of RBI. It started operating from July, 1988 with an authorised paid-up capital of RS. 450 crore.

ANSWER: September, 2005

Explanation:
The Government initiated the process of amalgamation of RRBs in a phased manner with a view to consolidate and strengthen RRBs. 196 RRBs were amalgamated to form 86 new RRBs till March 31, 2009.

ANSWER: December, 1997

Explanation:
In December, 1997, the Government of India appointed a committee under the chairmanship of Shri M.Narasimham to strengthen the banking system which submitted its report in April, 1998. The government accepted some of its recommendations, viz. prudential accounting norms, and classification of government-guaranteed advances.

ANSWER: Personal accident insurance

Explanation:
Whole life, Endowment, Term, Investment-linked, Life annuity plan, Medical and health are the main products of life insurance. Motor insurance, Fire/House owners/Householders insurance, Personal accident insurance, Medical and health insurance, Travel insurance are the main products of general insurance.

ANSWER: The Oriental Insurace Company

Explanation:
New India Assurance Company Limited, National Insurance Company Limited, The Oriental Insurance Company, United India Insurance, Agricultural Insurance Company of India are the major general insurance companies in India. Bajaj Allianz General Insurance, ICICI Lombard General Insurance, IFFCO-Tokio General Insurance, Reliance General Insurance, Royal Sundaram Alliance Insurance, TATA AIG General Insurance, Cholamandalam General Insurance, HDFC Ergo are the major general insurance private sector companies in India.

ANSWER: A legal contract between the owner of an asset and its user, containing many conditions including payment of a specified amount by the user to the Owner for use of the asset

Explanation:
Lease financing for equipment is provided by banks, captives and independent finance companies.

ANSWER: Non-performing Assets

Explanation:
A Non-performing Asset is defined as a credit facility in respect of which the interest has remained 'past due' for a specified period of time.

ANSWER: Senior citizens

Explanation:
Some financial institutions that provide the scheme in India are Dewan Housing Finance, State Bank of India, Punjab National Bank, Bank of Baroda, Central Bank of India, Union Bank of India, LIC Housing Finance, Indian Bank, Andhra Bank, Corporation Bank, Canara Bank.

ANSWER: More liquidity in the market

Explanation:
Market liquidity is a market's ability to facilitate an asset being sold quickly without having to reduce its price.

ANSWER: Internal Rate of Return

Explanation:
The internal rate of return is a rate of return used in capital budgeting to measure and compare the profitability of investments.

ANSWER: Medium

Explanation:
Small and medium-sized enterprises are businesses whose personnel numbers fall below certain limits.

ANSWER: Fixed Income Money Markets & Derivatives Association

Explanation:
FIMMDA is a voluntary market body for the bond, money and derivative markets.