Sunday 30 July 2017

Banking Awareness

Q1. In terms of Section ________ of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance and other banking operations, including the management of the public debt of the Union.
(a) section 16
(b) section 22
(c) section 32
(d) section 20
(e) section 25
S1. Ans.(d)
Sol. In terms of Section 20 of the RBI Act 1934, RBI has the obligation to undertake the receipts and payments of the Central Government and to carry out the exchange, remittance and other banking operations, including the management of the public debt of the Union. Further, as per Section 21 of the said Act, RBI has the right to transact Government business of the Union in India.
Q2. DGBA is responsible for discharging certain core traditional central banking functions, viz., acting as bankers to the Government and banks and managing public debt of both, central and state governments. DGBA stands for-
(a) Department of Government and Bank Accounts
(b) Division of Government and Bank Accounts
(c) District of Government and Bank Accounts
(d) Department of Government and Bank Agency
(e) Department of Government and Bank Association
S2. Ans.(a)
Sol. The Department of Government and Bank Accounts(DGBA) is responsible for discharging certain core traditional central banking functions, viz., acting as bankers to the Government and banks and managing public debt of both, central and state governments. It is also responsible for maintenance of the Reserve Bank's internal accounts and compilation of its weekly and annual accounts.

Q3. In how many divisions DGBA is divided at Central Office?
(a) one 
(b) two
(c) three
(d) four
(e) five
S3. Ans.(d)
Sol. At Central Office, DGBA is divided into four divisions.
(a) Bank Accounts Division
(b) Central Debt Division
(c) Government Accounts Division
(d) Central Accounts Section, Nagpur
Q4. Reserve Bank of India maintains the Principal Accounts of Central as well as State Governments at its Central Accounts Section in-  
(a) Mumbai
(b) Nagpur
(c) Pune
(d) Kolkata
(e) New Delhi
S4. Ans.(b)
Sol. Reserve Bank of India maintains the Principal Accounts of Central as well as State Governments at its Central Accounts Section, Nagpur. It has put in place a well-structured arrangement for revenue collection as well as payments on behalf of Government across the country. A network comprising the Public Accounts Departments of RBI and branches of Agency Banks appointed under Section 45 of the RBI Act carry out the Govt. transactions. At present all the public sector banks and three private sector banks viz. ICICI Bank Ltd., HDFC Bank Ltd. and Axis Bank Ltd. act as RBI's agents. Only authorised branches of Agency banks can conduct Govt. business.
Q5. OLTAS is a system introduced in _________ for collection, accounting and reporting of the receipts and payments of Direct Taxes online through a network of bank branches.
(a) November 1999
(b) January 2001
(c) April 2004
(d) July 2005
(e) September 2010
S5. Ans.(c)
Sol. OLTAS is a system introduced in April 2004 for collection, accounting and reporting of the receipts and payments of Direct Taxes on-line through a network of bank branches. The tax payers’ data flow from banks directly to Tax Information Network (TIN) maintained by National Securities Depository Ltd.
Q6. Who among the following regulates the Indian Corporate Debt Market?
(a) RBI
(b) NABARD
(c) SIDBI
(d) SEBI
(e) PFRDA
S6. Ans.(d)
Sol. Regulator for the Indian Corporate Debt Market is the Securities and Exchange Board of India (SEBI). SEBI controls the bond market and corporate debt market in cases where entities raise money from the public through public issues.
Q7. _______ is an integrated bill payment system which will offer inter operable bill payment service to customers online as well as through a network of agents on the ground.
(a) BBPS
(b) IMPS
(c) AEPS
(d) APBS
(e) None of the given options is true
S7. Ans.(a)
Sol. The Bharat Bill Payment System (BBPS) is a RBI mandated system which will offer integrated and interoperable bill payment services to customers across geographies with certainty, reliability and safety of transactions.
Q8. To become BBPOUs, Banks and nonbank entities are mandatorily required to apply for approval/authorization to Reserve Bank of India under ________
(a) Payment and Settlement Systems (PSS) Act 2007
(b) Foreign Exchange Management Act, 1999
(c) Banking Regulation Act, 1949
(d) SARFAESI Act, 2002
(e) None of the given options is true
S8. Ans.(a)

Sol. To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval/authorisation to Reserve Bank of India under Payment and Settlement Systems (PSS) Act 2007. Bharat Bill Payment Operating Units (BBPOUs) will be the authorised operational units.

Q9. Which of the following will function as the Bharat Bill Payment Central Unit (BBPCU), single authorized entity operating the BBPS?
(a) RBI
(b) NPCI
(c) GOI
(d) SEBI
(e) NABARD
S9. Ans.(b)
Sol. National Payments Corporation of India (NPCI) will function as the authorized Bharat Bill Payment Central Unit (BBPCU), which will be responsible for setting business standards, rules and procedures for technical and business requirements for all the participants. NPCI, as the BBPCU, will also undertake clearing and settlement activities related to transactions routed through BBPS.
Q10. As per the Reserve Bank of India, BBPS will initially accept utility bill payments such as-
(a) Telephone Bill
(b) Electricity Bill
(c) DTH services
(d) All of the Above
(e) None of the given options is true
S10. Ans.(d)
Sol. As per the Reserve Bank of India, BBPS will initially accept utility bill payments such as electricity, water, gas, telephone and direct-to-home services and will later include other repetitive payments including school and university fees and municipal taxes.

Q11. Loan and Advances of a bank come under which of the following category?
(a) Assets
(b) Liabilities
(c) Deposits
(d) All of the Above
(e) None of the given options is true

S11. Ans.(a)
Sol. Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive economic value is considered an asset. Anything tangible or intangible that can be owned or controlled to produce value and that is held to have positive economic value is considered an asset.
Q12. RBI sold its stake in NABARD to the Government of India, which now holds _____ stake.
(a) Approx 65%
(b) Approx 70%
(c) Approx 95%
(d) Approx 99%
(e) Approx 24%
S12. Ans.(d)
Sol. RBI sold its stake in NABARD to the Government of India, which now holds approx 99% stake.

Q13. Which of the following is not available to depositors of NBFCs?
(a) Deposit Insurance facility
(b) Acquisition of shares
(c) Loans and Advances
(d) All of the Above
(e) None of the given options is true

S13. Ans.(a)
Sol. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs, unlike in the case of banks.
Q14. NBFCs include ______
(a) loan company
(b) investment company
(c) asset finance company
(d) All of the Above
(e) None of the given options is true
S14. Ans.(d)
Sol. NBFCs include a loan company, an investment company, asset finance company (i.e. a company conducting the business of equipment leasing or hire purchase finance) and Residuary Non-Banking Companies.
Q15. India Infrastructure Finance Company Ltd (IIFCL) is a wholly-owned ____________ company set up in 2006.
(a) NABARD
(b) SEBI
(c) RBI
(d) Finance Ministry
(e) Government of India
S15. Ans.(e)
Sol. IIFCL is a wholly-owned Government of India company set up in 2006 to provide long-term finance to viable infrastructure projects through the Scheme for Financing Viable Infrastructure Projects through a Special Purpose Vehicle called India Infrastructure Finance Company Ltd (IIFCL), broadly referred to as SIFTI.

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