Wednesday, 14 June 2017

Banking Awareness,


Q1. Cheque which is truncated during the course of clearing cycle is called __________
(a) Stale Cheque
(b) Mutilated Cheque
(c) Self Cheque
(d) Truncated Cheque
(e) None of the given options is true
S1. Ans.(d)

Sol. A truncated cheque means a cheque which is truncated during the course of clearing cycle either by the clearing house or by the bank.

Q2. Person named in the instrument to whom or to whose order the money is to be paid is known as-?
(a) Drawer
(b) Drawee
(c) Payer
(d) Payee
(e) Receivable

S2 Ans.(d)

Sol. A person to whom money is paid or is to be paid is called payee, especially the person to whom a cheque is made payable.

Q3. National Housing Bank (NHB), a wholly owned subsidiary of the central bank (RBI) was established in 1988 under the-
(a) National Housing Bank Act, 1987
(b) National Housing Bank Act, 1988
(c) National Housing Bank Act, 1986
(d) National Housing Bank Act, 1985
(e) None of the given options is true

S3. Ans.(a)
Sol. The Hon’ble Prime Minister of India, while presenting the Union Budget for 1987-88 on February 28, 1987 announced the decision to establish the National Housing Bank (NHB) as an apex level institution for housing finance. Following that, the National Housing Bank Bill (91 of 1987) providing the legislative framework for the establishment of NHB was passed by Parliament in the winter session of 1987 and with the assent of the Hon’ble President of India on December 23, 1987, became an Act of Parliament. The National Housing Policy, 1988 envisaged the setting up of NHB as the Apex level institution for housing. In pursuance of the above, NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987. NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital.

Q4. The Banking Ombudsman Scheme was introduced under __________ of the Banking Regulation Act, 1949 by RBI with effect from 1995.
(a) Section 25A
(b) Section 35A
(c) Section 45A
(d) Section 15A
(e) Section 55A

S4. Ans.(b)
Sol. The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from 1995.

Q5. National Housing Bank (NHB), is an apex financial institution for housing, having headquarters in-?
(a) Mumbai
(b) New Delhi
(c) Bengaluru
(d) Hyderabad
(e) Kolkata
S5. Ans.(b)
Sol. National Housing Bank (NHB), a wholly owned subsidiary of RBI, was set up by an Act of Parliament in 1987 having headquarters in New Delhi.

Q6. Which of the following Act provides provisions for the regulation of credit information companies?
(a) Companies Act, 1956
(b) Credit Information (Companies Regulation Act, 2005)
(c) Information Technology Act, 2000
(d) Banking Regulation Act, 1949
(e) None of the given options is true
S6. Ans.(b)
Sol. Credit Information (Companies Regulation Act, 2005) provides for regulation of credit information companies and to facilitate efficient distribution of credit and for matters connected therewith or incidental thereto.
Q7. __________ are certificates issued by banks that have overreached their priority sector lending targets.
(a) Commercial Papers
(b) Certificate of Deposits
(c) Treasury Bills
(d) Priority Sector Lending Certificates
(e) None of the given options is true

S7. Ans.(d)
Sol. Domestic banks as well as foreign banks have to lend of their total loans to priority sectors which consist of agriculture, micro credits, education, social infrastructure and housing so that these unprivileged sections can get credit. To encourage lending to the priority sector, the central bank has introduced the concept of Priority Sector Lending Certificates (PSLC).

Q8. How many types of PSLCs can be issued by the Banks?
(a) Four
(b) Five
(c) Six
(d) Eight
(e) Ten
S8. Ans.(a)
Sol. There are only four eligible categories of PSLCs i.e. PSLC General, PSLC Small and Marginal Farmer, PSLC Agriculture & PSLC Micro Enterprises.

Q9. Which bank has launched India’s first golf-centric credit card?
(a) SBI
(b) UBI
(d) PNB
(d) RBL
(e) ICICI

S9. Ans.(d)
Sol. RBL Bank (formerly Ratnakar Bank) has launched India’s first golf-centric credit card. The card based on the premium MasterCard World platform was launched in association with the Indian Golf Union (IGU).

Q10. Which bank has launched India’s first contactless mobile payment solution-?
(a) ICICI
(b) Kotak Mahindra Bank
(c) IndusInd Bank
(d) South Indian Bank
(e) Axis Bank
S10. Ans.(a)
Sol. ICICI Bank has unveiled the country’s first contactless mobile payment solution to enable its credit and debit customers make in-store contactless payments by just waving their smart phones near an NFC-enabled merchant terminal. The mobile payment solution available in the Bank’s ‘Pockets’ app, provides improved convenience of ‘Touch & Pay’ as customers are no longer required to carry physical card or cash to pay in stores.
Q11. Which bank has launched India’s first digital branch in Gurugram, Haryana?
(a) ICICI
(b) Axis Bank
(c) Induslnd Ban
(d) South Indian Bank
(e) State Bank of India
S11. Ans.(c)
Sol. Induslnd Bank has launched India’s first digital branch at IndusInd Cyber city Rapid Metro station, Gurugram, Haryana. This video branch machine allows customers to connect with the remote teller over a real-time video call and perform regular banking transactions like statement printing, cheque deposits, opening of FD account and encashment, funds transfer along with dispensation of cash.
Q12. _______ is a deposit account provided by a bank or other financial institutions for individuals to save money and earn the modest interest for that money held in the account.
(a) Fixed Deposit Account
(b) Savings Bank Account
(c) Recurring Account
(d) Current Account
(e) Escrow Account
S12. Ans.(b)
Sol. A savings account is an account maintained by a bank or other financial institutions for individuals to save money and earn interest on the cash held in the account.A savings account is an account maintained by a bank or other financial institutions for individuals to save money and earn interest on the cash held in the account.
Q13. __________ is a deposit of money that has a fixed time and pays higher interest than a Saving Bank Account.
(a) Fixed Deposit Account
(b) Savings Bank Account
(c) Current Account
(d) All of the above
(e) None of the given options is true

S13. Ans.(a)
Sol. A deposit of money that pays higher interest than a savings account but imposes conditions on the amount, frequency, and/or period of withdrawals. It is also called time deposit.

Q14. First Indian bank to provide Internet Banking facility is-?
(a) SBI
(b) ICICI Bank
(c) Canara Bank
(d) BOI
(e) PNB
S14. Ans.(b)
Sol. First Indian bank to introduce internet banking – ICICI bank.
Q15. Which of the following was implemented by National Payments Corporation of India (NPCI) for Banks, Financial Institutions and Corporate etc.?
(a) National Automated Clearing House (NACH)
(b) National Automatic Clearing House (NACH)
(c) National Automated Cleared House (NACH)
(d) National Automatic Cleared House (NACH)
(e) Nominal Automatic Cleared House (NACH)
S15. Ans.(a)
Sol. A web based solution to facilitate interbank, high volume, electronic transactions which are repetitive and periodic in nature. National Automated Clearing House (NACH) System can be used for making bulk transactions towards distribution of subsidies, dividends, interest, salary, pension etc. and also for bulk transactions towards collection of payments pertaining to telephone, electricity, water, loans, investments in mutual funds, insurance premium etc.
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