Banking Awareness,

Q1. ___________ is vested with the responsibility of conducting monetary policy. 

(a) RBI
(b) SBI
(c) NABARD
(d) SIDBI
(e) Finance Ministry

Q2. In which year the Reserve Bank of India (RBI) Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework?

(a) May 2013

(b) May 2014
(c) May 2015
(d) May 2016
(e) May 2012

Q3. Which scheme/act has enables an expeditious and inexpensive forum to bank customers for resolution of complaints relating to certain services rendered by banks?

(a) Reserve Bank of India Act, 1934
(b) Banking Regulation Act, 1949
(c) Securitization Act 2002
(d) FEMA 
(e) Banking Ombudsman Scheme

Q4. The Banking Ombudsman Scheme is introduced by RBI with effect from-

(a) 1991
(b) 1995
(c) 1990
(d) 2002
(e) 2006

Q5. IBA adopts a consultative approach to give its views on any issue pertaining to the banking sector. What is the meaning of "I" in IBA?

(a) International
(b) Institute
(c) Investment
(d) Indian
(e) Increase

Q6. IBA stands for-

(a) Indian Banks' Allocation 
(b) Indian Banks' Association
(c) Institute Banks' Association 
(d) Indian Banks' Assembly
(e) Indian Billing Association 

Q7. What is the present Repo Rate?
(a) 7.00%
(b) 6.25%
(c) 6.50%
(d) 6.75%
(e) None of the above

Q8. 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

Q9. 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

Q10. As on date, there is _________ Banking Ombudsman centre located in India.

(a) 20
(b) 19
(c) 18
(d) 17
(e) 16

Q11. IBA was set up in ________ with 22 members to discuss issues of common interests.
(a) 1946
(b) 1955
(c) 1934
(d) 1921
(e) 1961

Q12. What is the effort of IBA?
(a) Assist and provide common services to members.
(b) Promote sound and progressive banking principles and practices. 
(c) Co-ordinate and co-operate on procedural, legal, technical, administration, professional matters. 
(d) Build Image of banking industry through publicity and public relations.
(e) All of the above

Q13. Central Government has notified in the Official Gazette ___________ CPI inflation as the target for the period from August 5, 2016 to March 31, 2021 with the upper tolerance limit of 6 per cent and the lower tolerance limit of 2 per cent.

(a) 4 percent
(b) 3 percent
(c) 5 percent
(d) 2 percent
(e) None of the above

Q14. What is the full form of CPI?
(a) Customer Price Index
(b) Consumer Price Index
(c) Consumer Product Index
(d) Consumer Price Indian
(e) Custom Price Index

Q15. What is the focus & Priorities of IBA?
(a) The Government of India on policy related issues 
(b) Industry unions on wage negotiations and improving industrial relations 
(c) Foreign counterparts to widen the horizon and perspectives 
(d) Members to encourage inter-bank co-operation and co-ordination 
(e) All of the above

Solutions

S1. Ans.(a)
Sol. Monetary policy refers to the policy of the central bank with regard to the use of monetary instruments under its control to achieve the goals specified in the Act. The Reserve Bank of India (RBI) is vested with the responsibility of conducting monetary policy. This responsibility is explicitly mandated under the Reserve Bank of India Act, 1934.

S2. Ans.(d)
Sol. The primary objective of monetary policy is to maintain price stability while keeping in mind the objective of growth. Price stability is a necessary precondition to sustainable growth. In May 2016, the Reserve Bank of India (RBI) Act, 1934 was amended to provide a statutory basis for the implementation of the flexible inflation targeting framework.

S3. Ans.(e)
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.

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.

S5. Ans.(d)
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.

S6. 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.

S7. Ans.(b)
Sol. present Repo Rate is 6.25%.

S8. Ans.(e)
Sol. Cash Reserve Ratio is Reserve ratio of RBI.

S9. 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.

S10. Ans.(a)
Sol. As on date, there are 20 Banking Ombudsman centre located in India. This are-
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

S11. Ans.(a)
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. IBA adopts a consultative approach to give its views on any issue pertaining to banking sector.

S12. Ans.(e)
Sol. Effort of IBA is-
1. Promote sound and progressive banking principles and practices.
2. Assist and provide common services to members.
3. Co-ordinate and co-operate on procedural, legal, technical, administration, professional matters.
4. Collate, classify and circulate statistical and other information.
5. Pool expertise towards common objectives of reduction in costs, increase efficiency, productivity and improve systems, procedures and banking practices.
6. Build Image of banking industry through publicity and public relations.

S13. Ans.(a)
Sol. The amended RBI Act also provides for the inflation target to be set by the Government of India, in consultation with the Reserve Bank, once in every five years. Accordingly, the Central Government has notified in the Official Gazette 4 percent Consumer Price Index (CPI) inflation as the target for the period from August 5, 2016 to March 31, 2021 with the upper tolerance limit of 6 per cent and the lower tolerance limit of 2 per cent.

S14. Ans.(b)
Sol. CPI stands for Consumer Price Index.

S15. Ans.(e)
Sol. Focus & Priorities of IBA is:-
1. The Government of India on policy related issues
2. Industry unions on wage negotiations and improving industrial relations
3. Members to encourage inter-bank co-operation and co-ordination
4. Foreign counterparts to widen the horizon and perspectives
5. Other trade bodies for better co-ordination
6. Its constituents and stakeholders for new initiatives
7. The Reserve Bank of India on regulatory issues