Sunday 9 July 2017

Banking Awareness


Q1. _______ 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) None of the given options is true

S1. 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.

Q2. Which among the following bank is the first bank to launch the Mudra Card based on the RuPay platform?
(a) SBI
(b) Corporation Bank
(c) Vijaya Bank
(d) PNB
(e) HDFC Bank

S2. Ans.(b)
Sol. Corporation Bank is the first bank to launch the Mudra Card based on the RuPay platform under the Pradhan Mantri MUDRA Yojana (PMMY).

Q3. ______________ in partnership with Visa launched India’s first co-branded e-commerce credit card
(a) Flipkart and ICICI Bank
(b) Snapdeal and ICICI Bank
(c) Flipkart and HDFC Bank
(d) Snapdeal and HDFC Bank
(e) Flipkart and Axis Bank

S3. Ans.(d)
Sol. Snapdeal and HDFC Bank in partnership with Visa launched the India’s first co-branded e-commerce credit card.

Q4. ____________ is a product to provide a person with an opportunity to build up saving through regular monthly deposits of fixed sum over a period of time.
(a) Fixed Deposit Account
(b) Savings Bank Account
(c) Recurring Deposit Account
(d) Current Account
(e) None of the given options is true

S4. Ans.(c)
Sol. Recurring Deposit is a special kind of Term Deposit offered by banks in India which help people with regular incomes to deposit a fixed amount every month into their Recurring Deposit.

Q5. World’s first Bank Agnostic Instant Funds Transfer Platform using Facebook launched by-
(a) ICICI Bank
(b) Kotak Mahindra Bank
(c) Indusind Bank
(d) Central Bank
(e) HDFC Bank

S5. Ans.(b)
Sol. Kotak Mahindra Bank launched KayPay – World’s First Bank Agnostic Instant Funds Transfer Platform using Facebook. Millions of bank account holders can transfer money to each other at any hour of the day or night, without needing net banking, or knowing various bank account related details of the payee.

Q6. With effect from March 31, 2005, an asset would be classified as _____________ if it has remained in the sub­standard category for a period of 12 months. 
(a) Sub­standard Assets
(b) Profit Assets
(c) Doubtful Assets
(d) Loss Assets
(e) None of the above

S6. Ans.(c)
Sol. With effect from March 31, 2005, an asset would be classified as doubtful if it has remained in the sub­standard category for a period of 12 months. A loan classified as doubtful has all the weaknesses inherent in assets that were classified as sub­standard, with the added characteristic that the weaknesses make collection or liquidation in full,– on the basis of currently known facts, conditions and values – highly questionable and improbable.

Q7. What is the financial limit Under MUDRA's Shishu scheme?
(a) Rs. 5,00,000
(b) Rs. 50,000
(c) Rs. 1,00,000
(d) Rs. 10,000
(e) Rs. 1,50,000

S7. Ans.(b)
Sol. Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products/schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth/development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to. The financial limit for these schemes is:-
(a) Shishu:- covering loans up to  50,000/-
(b) Kishor:- covering loans above  50,000/- and up to  5 lakh
(c) Tarun:- covering loans above  5 lakh to  10 lakh

Q8. What is the financial limit Under MUDRA's Kishor scheme?
(a) Rs. 50,000 to Rs. 10 lakh
(b) Rs. 50,000 to Rs. 3 lakh
(c) Rs. 50,000 to Rs. 1 lakh
(d) Rs. 50,000 to Rs. 2 lakh
(e) Rs. 50,000 to Rs. 5 lakh

S8. Ans.(e)
Sol. Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has already created its initial products/schemes. The interventions have been named ‘Shishu’, ‘Kishor’ and ‘Tarun’ to signify the stage of growth/development and funding needs of the beneficiary micro unit / entrepreneur and also to provide a reference point for the next phase of graduation / growth to look forward to. The financial limit for these schemes is:-
(a) Shishu:- covering loans up to  50,000/-
(b) Kishor:- covering loans above  50,000/- and up to  5 lakh
(c) Tarun:- covering loans above  5 lakh to  10 lakh

Q9. Which among the following Incentives and facilities offered to the SEZs is not correct-
(a) Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units.
(b) Exemption from State sales tax and other levies as extended by the respective State Governments. 
(c) Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
(d) 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for 10 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
(e) Exemption from Central Sales Tax.

S9. Ans.(d)
Sol. The incentives and facilities offered to the units in SEZs for attracting investments into the SEZs, including foreign investment include:-
(a) Duty free import/domestic procurement of goods for development, operation and maintenance of SEZ units
(b) 100% Income Tax exemption on export income for SEZ units under Section 10AA of the Income Tax Act for first 5 years, 50% for next 5 years thereafter and 50% of the ploughed back export profit for next 5 years.
(c) Exemption from minimum alternate tax under section 115JB of the Income Tax Act.
(d) External commercial borrowing by SEZ units up to US $ 500 million in a year without any maturity restriction through recognized banking channels.
(e) Exemption from Central Sales Tax.
(f) Exemption from Service Tax.
(g) Single window clearance for Central and State level approvals.
(h) Exemption from State sales tax and other levies as extended by the respective State Governments.

Q10. ___________ is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs. 
(a) SEZs
(b) FDI
(c) FIPB
(d) CDR
(e) CSR

S10. Ans.(a)
Sol. Special Economic Zones (SEZs) is a specifically delineated duty-free enclave and shall be deemed to be foreign territory for the purposes of trade operations and duties and tariffs.

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

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.

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

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.

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

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 per cent 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.

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

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

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 

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