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

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

Q3. The Reserve Bank of India was promoted a public limited company on January 14th, 1971, named the CGCI. What was the meaning of "C" in CGCI?

(a) Common

(b) Conclusion

(c) Corporation

(d) Concept

(e) Credit

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

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 

Q6. DICGC was came into existence on- 

(a) 15th July 1949

(b) 15th July 1961

(c) 15th July 1982

(d) 15th July 1972

(e) 15th July 1978

Q7. The authorised capital of the DICGC is 50 crore, which is fully issued and subscribed by-

(a) Government of India

(b) SIDBI

(c) NABARD

(d) RBI

(e) SEBI

Q8. Which type of Banks is covered under Deposit Insurance (DICGC) Scheme?

(a) All commercial banks including the branches of foreign banks functioning in India

(b) Local Area Banks 

(c) Regional Rural Banks

(d) All of the above

(e) None of the above

Q9. Initially (Before 1968), under the provisions of Section 16(1) of the DICGC Act, the insurance cover was limited to ________ only per depositor(s) for deposits held by him (them) in the "same right and in the same capacity" in all the branches of the bank taken together. 

(a) Rs 1500

(b) Rs 2500

(c) Rs 10000

(d) Rs 50000

(e) Rs 100

Q10. Who is the present chairman of DICGC?

(a) Harsh Kumar Bhanwala

(b) SS Mundra

(c) NS Vishwanathan

(d) R Gandhi

(e) Ajay Tyagi

Solutions

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. 

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. 

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. 

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. 

S5. Ans.(b)

Sol. DICGC stands for Deposit Insurance and Credit Guarantee Corporation.

S6. Ans.(e)

Sol. Deposit Insurance and Credit Guarantee Corporation (DICGC) was came into existence on July 15, 1978. Consequently, the title of Deposit Insurance Act, 1961 was changed to 'The Deposit Insurance and Credit Guarantee Corporation Act, 1961'.

S7. Ans.(d)

Sol. The authorised capital of the Corporation is 50 crore, which is fully issued and subscribed by the Reserve Bank of India (RBI). 

S8. Ans.(d)

Sol. All commercial banks including the branches of foreign banks functioning in India, Local Area Banks and Regional Rural Banks are covered under Deposit Insurance (DICGC) Scheme.

S9. Ans.(a)

Sol. Initially, under the provisions of Section 16(1) of the DICGC Act, the insurance cover was limited to 1,500/- only per depositor(s) for deposits held by him (them) in the "same right and in the same capacity" in all the branches of the bank taken together. However, the Act also empowers the Corporation to raise this limit with the prior approval of the Central Government. 

S10. Ans.(c)

Sol. N.S.Vishwanathan (Deputy Governor, Reserve Bank of India) is the present chairman of DICGC.