Banking Awareness,

Q1. The concept of insuring deposits kept with banks received attention for the first time in the year ___________ after the banking crises in Bengal. 
(a) 1941
(b) 1933
(c) 1961
(d) 1948
(e) 1919

S1. Ans.(d)
Sol. The concept of insuring deposits kept with banks received attention for the first time in the year 1948 after the banking crises in Bengal. The question came up for reconsideration in the year 1949, but it was decided to hold it in abeyance till the Reserve Bank of India ensured adequate arrangements for inspection of banks. Subsequently, in the year 1950, the Rural Banking Enquiry Committee also supported the concept.

Q2. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961 and the Deposit Insurance Act, 1961 came into force on January 01st-
(a) 1962
(b) 1975
(c) 1956
(d) 1949
(e) 1935

S2. Ans.(a)
Sol. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961 and the Deposit Insurance Act, 1961 came into force on January 1, 1962. The Deposit Insurance Scheme was initially extended to functioning commercial banks only. This included the State Bank of India and its subsidiaries, other commercial banks and the branches of the foreign banks operating in India.

Q3. The Reserve Bank of India was promoted a public limited company on January 14th 1971, named the CGCI. What was the meaning of first "C" in CGCI?
(a) Common
(b) Conclusion
(c) Corporation
(d) Concept
(e) Credit

S3. Ans.(e)
Sol. The Reserve Bank of India also promoted a public limited company on January 14, 1971, named the Credit Guarantee Corporation of India Ltd. (CGCI). The main thrust of the Credit Guarantee Schemes, introduced by the Credit Guarantee Corporation of India Ltd., was aimed at encouraging the commercial banks to cater to the credit needs of the hitherto neglected sectors, particularly the weaker sections of the society engaged in non-industrial activities, by providing guarantee cover to the loans and advances granted by the credit institutions to small and needy borrowers covered under the priority sector.

Q4. The DIC Bill was introduced in the Parliament on August 21st 1961. What is the meaning of "D" in DIC?
(a) Distance
(b) Development
(c) Deposit
(d) Demand
(e) None of the above

S4. Ans.(c)
Sol. The Deposit Insurance Corporation (DIC) Bill was introduced in the Parliament on August 21, 1961. After it was passed by the Parliament, the Bill got the assent of the President on December 7, 1961 and the Deposit Insurance Act, 1961 came into force on January 1, 1962.

Q5. DICGC stands for- 
(a) Deposit Investment and Credit Guarantee Corporation
(b) Deposit Insurance and Credit Guarantee Corporation
(c) Deposit Insurance and Credit Guarantee Company
(d) Demand Insurance and Credit Guarantee Corporation
(e) Deposit Installment and Credit Guarantee Corporation

S5. Ans.(b)
Sol. DICGC stands for Deposit Insurance and Credit Guarantee Corporation.

Q6. NPA is a loan or an advance where interest and/or installment of principal remain overdue for a period of more than ______ days in respect of a term loan.
(a) 100 days
(b) 30 days
(c) 90 days
(d) 60 days
(e) 120 days

S6. Ans.(c)
Sol. A non ­performing asset (NPA) is a loan or an advance where interest and/or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.

Q7. NPA is a loan or an advance where?
(a) the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
(b) the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
(c) the installment of principal or interest there on remains overdue for two crop seasons for short duration crops.
(d) All of the above
(e) None of the above

S7. Ans.(d)
Sol. A non ­performing asset (NPA) is a loan or an advance where;
1. interest and/or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.
2. the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
3. the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted.
4. the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops.
5. the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
6. the amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006.
7. in respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.

Q8. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like-
(a) Banks
(b) NBFCs
(c) MFIs
(d) All of the above
(e) None of the above

S8. Ans.(d)
Sol. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units’ enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs.

Q9. MUDRA Bank, a Non Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of............?
(a) SIDBI
(b) IDBI
(c) RBI
(d) NABARD
(e) SBI

S9. Ans.(a)
Sol. MUDRA Bank, a Non Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of SIDBI.

Q10. In which among the following year Asia's first Export Processing Zone (EPZ) was set up?
(a) 1959
(b) 1971
(c) 1965
(d) 1956
(e) 1975

S10. Ans.(c)
Sol. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla, Gujarat in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.

Q11. IBA stands for-
(a) Indian Banks' Allocation
(b) Indian Banks' Association
(c) Institute Banks' Association
(d) Indian Banks' Assembly
(e) Indian Billing Association

S11. Ans.(b)
Sol. Indian Banks' Association (IBA) set up in 1946 with 22 members to discuss issues of common interests. Over the years, IBA emerged as the Voice of Indian Banking Industry.

Q12. What is the present Repo Rate?
(a) 7.00%
(b) 6.25%
(c) 6.50%
(d) 6.75%
(e) None of the above

S12. Ans.(b)
Sol. present Repo Rate is 6.25%.

Q13. Which among the following rates is not the policy rate of RBI?
(a) Repo Rate
(b) Reverse Repo Rate
(c) Bank Rate
(d) Marginal Standing Facility Rate
(e) Cash Reserve Ratio

S13. Ans.(e)
Sol. Cash Reserve Ratio is Reserve ratio of RBI.

Q14. The Banking Ombudsman is a senior official appointed by..............?
(a) Indian Government
(b) President of India
(c) Chief Justice of India
(d) Reserve Bank of India
(e) Finance Ministry

S14. Ans.(d)
Sol. The Banking Ombudsman is a senior official appointed by the Reserve Bank of India to redress customer complaints against deficiency in certain banking services.

Q15. As on date, there are _________ Banking Ombudsman centre located in India.
(a) 20
(b) 19
(c) 18
(d) 17
(e) 16

S15. Ans.(a)
Sol. As on date, there are 20 Banking Ombudsman centre located in India. These ares-
1. Ahmedabad, Gujarat
2. Bengaluru, Karnataka
3. Bhopal, Madhya Pradesh
4. Bhubaneswar, Odisha
5. Chandigarh
6. Chennai, Tamil Nadu
7. Guwahati, Assam
8. Hyderabad, Andhra Pradesh
9.  Jaipur, Rajasthan
10. Kanpur, Uttar Pradesh
11. Kolkata, West Bengal
12. Mumbai, Maharashtra
13. New Delhi (I)
14. New Delhi (II)
15. Patna, Bihar
16. Thiruvananthapuram, Kerala
17. Dehradun, Uttarakhand
18. Ranchi, Jharkhand
19. Jammu, Jammu and Kashmir
20. Raipur, Chhattisgarh