Sunday 20 August 2017

Banking Awareness


Q1. NPCI is an umbrella organization for all retail payments system in India. It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA). What does NPCI stands for-
(a) National Payments Corporation of Industry
(b) National Payments Council of India
(c) Nominal Payments Corporation of India
(d) National Payments Corporation of India
(e) National Product Corporation of India
S1. Ans.(d)
Sol. National Payments Corporation of India (NPCI) is an umbrella organization for all retail payments system in India. It was set up with the guidance and support of the Reserve Bank of India (RBI) and Indian Banks’ Association (IBA).

Q2. In which among the following years NPCI was incorporated-
(a) December 2008
(b) January 2006
(c) April 2010
(d) July 2012
(e) None of the given options is true
S2. Ans.(a)
Sol. NPCI was incorporated in December 2008 and the Certificate of Commencement of Business was issued in April 2009. It was incorporated as a Section 25 company under Companies Act 1956 (now Section 8 of Companies Act 2013) and is aimed to operate for the benefit of all the member banks and their customers.
Q3. The Bank for International Settlements (BIS) is the world's oldest international financial organisation. BIS was established on-
(a) 26th May 1961
(b) 01st October 1949
(c) 14th February 1914
(d) 21st August 1945
(e) 17th May 1930
S3. Ans.(e)
Sol. Established on 17 May 1930, the Bank for International Settlements (BIS) is the world's oldest international financial organisation. The BIS has 60 member central banks, representing countries from around the world that together make up about 95% of world GDP.
Q4. Where is the head office of Bank for International Settlements (BIS)?
(a) Zurich, Switzerland
(b) New York, USA
(c) Basel, Switzerland
(d) Berlin, Germany
(e) Geneva, Switzerland
S4. Ans.(c)
Sol. Basel, Switzerland is the head office of Bank for International Settlements (BIS).

Q5. Under which act NPCI was incorporated as a Section 8?
(a) Banking Regulation Act, 1949
(b) Companies Act 2013
(c) Reserve Bank of India Act, 1934
(d) Societies Registration Act, 1860 
(e) None of the given options is true

S5. Ans.(b)
Sol. NPCI was incorporated as a Section 25 company under Companies Act 1956 (now Section 8 of Companies Act 2013) and is aimed to operate for the benefit of all the member banks and their customers.
Q6. PSLCs are tradable certificates issued against priority sector loans of banks. What does meaning of "Cs" in PSLCs?
(a) Cess
(b) Cities
(c) Census
(d) Certificates
(e) ) None of the given options is true
S6. Ans.(d)
Sol. PSLCs stands for Priority Sector Lending Certificates.
Q7. The Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation Act, 1949 by RBI with effect from -
(a) 1995
(b) 1999
(c) 1990
(d) 1982
(e) 1988
S7. Ans.(a)
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.
Q8. MTSS is a way of transferring personal remittances from abroad to beneficiaries in India. What does MTSS stand for-?
(a) Mobile Transfer Service Scheme 
(b) Money Transfer System Scheme 
(c) Money Timing Service Scheme 
(d) Market Transfer Service Scheme 
(e) Money Transfer Service Scheme
S8. Ans.(e)
Sol. Money Transfer Service Scheme (MTSS) are the most common arrangements under which the remittances are received into the country.
Q9. How much cash can payment be made to the beneficiary in India under MTSS? 
(a) Rs 2,00,000
(b) Rs 50,000
(c) Rs 1,00,000
(d) Rs 10,000
(e) ) None of the given options is true
S9. Ans.(b)
Sol. Amounts up to INR 50,000/- may be paid in cash to a beneficiary in India under MTSS.
Q10. RDA is a channel to receive cross-border remittances from overseas jurisdictions. What does meaning of "A" in RDA?
(a) Account
(b) Assembly
(c) Arrangement
(d) Association
(e) Amount
S10. Ans.(c)
Sol. RDA stands for Rupee Drawing Arrangement.
Q11. Under OLTAS, only a Single Copy Challan is used with a tear off the portion for the Tax Payer. What does OLTAS stand for-
(a) On-line Tax Accounting Service
(b) On-line Tax Amounting System
(c) On-line Timing Accounting System
(d) On-line Tax Association Service
(e) On-line Tax Accounting System
S11. Ans.(e)
Sol. Under On-line Tax Accounting System (OLTAS), only a Single Copy Challan is used with a tear off portion for the Tax Payer.
Q12. What is the minimum period of maturity prescribed for Commercial Paper (CP)?
(a) 17 Months
(b) 14 Days
(c) 01 Year
(d) 07 days
(e) 05 years

S12. Ans.(d)
Sol. Commercial Paper (CP) can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.
Q13. Which banks are insured by the Deposit Insurance and Credit Guarantee Corporation (DICGC)?
(a) Foreign Banks functioning in India
(b) Local Area Banks
(c) Regional Rural Banks
(d) All of the above
(e) ) None of the given options is true

S13. Ans.(d)
Sol. All commercial banks including branches of foreign banks functioning in India, local area banks and regional rural banks are insured by the DICGC.
Q14. What is the maximum period of maturity prescribed for Commercial Paper (CP)?
(a) 10 years
(b) 06 years
(c) 01 Year
(d) 02 years
(e) 05 years
S14. Ans.(c)
Sol. Commercial Paper (CP) can be issued for maturities between a minimum of 7 days and a maximum of up to one year from the date of issue.
Q15. Each depositor in a bank is insured by DICGC up to a maximum of _____________________ for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.
(a) Rs.1,00,000 
(b) Rs.2,00,000 
(c) Rs.3,00,000 
(d) Rs.4,00,000 
(e) Rs.5,00,000
S15. Ans.(a)
Sol. Each depositor in a bank is insured upto a maximum of Rs.1,00,000 (Rupees One Lakh) for both principal and interest amount held by him in the same capacity and same right as on the date of liquidation/cancellation of bank's licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.

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