Banking Awareness,

Q1. Under OLTAS, only a Single Copy Challan is used with a tear-off 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

Q2. 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

Q3. 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 above

Q4. 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

Q5. Each depositor in a bank is insured by DICGC upto 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

Q6. Which organisation holding the highest/maximum share in NABARD as on 31st March 2016?

(a) Finance Ministry 

(b) Government of India

(c) Reserve Bank of India

(d) Securities and Exchange Board of India

(e) None of the above

Q7. Who is the present Chairman of SEBI?

(a) Ajay Tyagi

(b) Kshatrapati Shivaji

(c) Yaduvendra Mathur

(d) Shaktikanta Das

(e) Urjit Patel

Q8. At the instance of Government of India Reserve Bank of India (RBI) was constituted a committee to review the arrangements for institutional credit for agriculture and rural development (CRAFICARD) on 30 March 1979, under the Chairmanship of-

(a) V K Malhotra

(b) C Rangarajan

(c) B Sivaraman

(d) Hilton Young

(e) None of the above

Q9. The Government of India, the concerned State Government and the bank, which had sponsored the RRB contributed to the share capital of RRBs in the proportion of ________________ respectively. 

(a) 50%, 15% and 35%

(b) 50%, 35% and 15% 

(c) 35%, 50% and 35% 

(d) 15%, 50% and 35% 

(e) None of the above

Q10. Regional Rural Banks (RRBs) were established in 1975 under the provisions of the Ordinance promulgated on the 26th September 1975 and followed by which act?

(a) Companies Act, 1956

(b) RRBs Act, 1976

(c) RBI Act, 1935

(d) Banking Regulation Act, 1949

(e) None of the above

Q11. FICCI history is closely interwoven with India's struggle for independence, its industrialisation, and its emergence as one of the most rapidly growing global economies. What is the meaning of "F" in FICCI?

(a) Follower

(b) Federal

(c) Financial

(d) Federation

(e) None of the above

Q12. Who was the first Chairman and Managing Director (CMD) of Exim Bank?

(a) Ravneet Kaur

(b) TCA Ranganathan

(c) RC Shah

(d) Kalyan Banerji

(e) Yaduvendra Mathur

Q13. ECGC Ltd. wholly owned by Government of India was set up in ______________ with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports.

(a) 1935

(b) 1982

(c) 1964

(d) 1949

(e) 1957

Q14. ECGC is essentially an export promotion organisation, seeking to improve the competitiveness of the Indian exporters by providing them with credit insurance covers. What is the meaning of "G" in ECGC?

(a) Guarantee 

(b) General 

(c) Government

(d) Grameen

(e) None of the above

Q15. AIIB is a new multilateral financial institution founded to bring countries together to address the daunting infrastructure needs across Asia. AIIB stands for-

(a) Asian Infrastructure Investment Bureau

(b) Asian Infrastructure Investment Bank

(c) Association Infrastructure Investment Bank 

(d) Asian International Investment Bank 

(e) None of the above

Solutions

S1. 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.

S2. 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.

S3. 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.

S4. 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.

S5. Ans.(a)
Sol. Each depositor in a bank is insured up to 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.

S6. Ans.(b)
Sol. paid up capital of NABARD stood at Rs. 5,000 crores as on 31 March 2016. Consequent to the revision in the composition of share capital between Government of India and RBI, the Government of India has held Rs. 4,980 crore (99.60%) while Reserve Bank of India holds Rs. 20.00 crore (0.40%).

S7. Ans.(a)
Sol. Ajay Tyagi is the present Chairman of SEBI.

S8. Ans.(c)
Sol. The importance of institutional credit in boosting the rural economy has been clear to the Government of India right from its early stages of planning. Therefore, the Reserve Bank of India (RBI) at the insistence of the Government of India, constituted a Committee to Review the Arrangements For Institutional Credit for Agriculture and Rural Development (CRAFICARD) to look into these very critical aspects. The Committee was formed on 30 March 1979, under the Chairmanship of Shri B. Sivaraman, the former member of Planning Commission, Government of India.

S9. Ans.(a)
Sol. In RRBs, 50% share shall be held by the central government, 15% by the concerned state government and 35% by the sponsor bank.

S10. Ans.(b)
Sol. Regional Rural Banks were set up by the Government of India under Regional Rural Banks act 1976.

S11. Ans.(d)
Sol. Established in 1927,  Federation of Indian Chambers of Commerce and Industry (FICCI) is the largest and oldest apex business organisation in India. Its history is closely interwoven with India's struggle for independence, its industrialisation, and its emergence as one of the most rapidly growing global economies.

S12. Ans.(c)
Sol. Established by the Government of India, we commenced operations in 1982 under the Export-Import Bank of India Act, 1981 as a purveyor of export credit, mirroring global Export Credit Agencies. R.C. Shah was the first Chairman and Managing Director (CMD) from 1982 - 1985 of Exim Bank.

S13. Ans.(e)
Sol. ECGC Ltd. (Formerly Export Credit Guarantee Corporation of India Ltd.), wholly owned by Government of India, was set up in 1957 with the objective of promoting exports from the country by providing Credit Risk Insurance and related services for exports.

S14. Ans.(a)
Sol. ECGC Ltd (Formerly Export Credit Guarantee Corporation of India Ltd.).

S15. Ans.(b)
Sol. The Asian Infrastructure Investment Bank (AIIB) is a new multilateral financial institution founded to bring countries together to address the daunting infrastructure needs across Asia. 

QUIZ-17+

Q1. Great Britain has beaten Australia in the hockey final of the 26th edition of the Azlan Shah Cup. The event was held in _____________. 
Answer: Ipoh, Malaysia

Q2. World Red Cross Day is observed every year on _______________.
Answer: 8th May

Q3. Union Minister for Road Transport and Highway Nitin Gadkari recently inaugurated the country's first bio-refinery plant which produces ethanol from the variety of biomass. The project is situated in ___________________.
Answer: Pune

Q4. PM Modi has recently addressed Indian heads of mission meet in New Delhi. The four-day conference was formally inaugurated by _______________.
Answer: Sushma Swaraj

Q5. World Red Cross Day is observed every year to commemorate the birth anniversary of ______________, the founder of the Red Cross as well as the founder of International Committee of the Red Cross (ICRC).
Answer: Henry Dunant

Q6. Eminent personality Raees Khan died recently. He was famous ______________.
Answer: Sitar Player

Q7. Name the country that has been unanimously elected as the President of UN-Habitat, an organ of the United Nations Organization.
Answer: India

Q8. Name the Database Company that has recently signed an MoU with the Government of Jharkhand to improve cloud-based citizen services and to make Jharkhand an attractive destination for start-ups.
Answer: Oracle

Q9. India's growth is expected to rebound to ________ percent in the 2017-18 fiscal and ________ percent in 2018-19 after disruptions caused by demonetization, as per the IMF (International Monetary Fund) report, respectively.
Answer: 7.2 and 7.7

Q10. DIPP and World Intellectual Property Organization (WIPO) have recently signed an agreement to establish Technology and Innovation Support Centers (TISC). What does 'I' stands for in DIPP?
Answer: Industrial

Q11. Name the Indian Shooter who claimed a bronze medal in the women's 10m Air Pistol as India ended the Grand Prix of Liberation Plezn 2017 shooting championships in Czech Republic with seven medals.
Answer: Heena Sindhu

Q12. Name the senior diplomat who has been appointed as India’s Ambassador to the Netherlands.
Answer: Venu Rajamony

Q13. Name the fast bowler who is now the leading wicket-taker in Women’s ODIs, as per the recent ICC data.
Answer: Jhulan Goswami

Q14. Name the newly appointed President of South Korea.
Answer: Moon Jae-In

Q15. The Supreme Court has taken its first step towards becoming a paperless, digital court. The First Chief Justice of Supreme Court was _____________.
Answer: Harilal J. Kania

QUIZ-17+

Q1. India has signed a Memorandum of Understanding with which of the following country to institutionalise cooperation between Parliaments of the two countries?

(a) Ukraine

(b) China

(c) Japan

(d) Mauritius

(e) Singapore

S1. Ans.(d)
Sol. India and Mauritius have signed a Memorandum of Understanding to institutionalise cooperation between Parliaments of the two countries. The MoUwas signed by LokSabha Speaker SumitraMahajan and Speaker of National Assembly of Mauritius SantiBaiHanoomanjee in Port Louis.

Q2. The government of India has recently launched a service named ____________ to provide legal aid for the people living in rural areas through video conferencing.

(a) IT Law

(b) Tele Law

(c) Comm Law

(d) Electro Law

(e) VC Law

S2. Ans.(b)
Sol. The government of India has launched ‘Tele Law’ service to provide legal aid for the people living in rural areas through video conferencing. The service has been launched to make legal aid easily accessible to the marginalised communities and citizens living in rural areas.

Q3. In French open 2017 Women's Doubles Title, BethanieMattek-Sands and Lucie Safarova defeated Ashleigh Barty and Casey Dellacqua to win the title. Lucie Safarova hails from which country?

(a) Czech Republic

(b) USA

(c) Canada

(d) Italy

(e) Switzerland

S3. Ans.(a)
Sol. In French open 2017 Women's Doubles Title, BethanieMattek-Sands (USA) and Lucie Safarova (Czech Republic) defeated Ashleigh Barty and Casey Dellacqua to win the title.

Q4. The Union Minister of State for Development of North Eastern Region (DoNER), Dr JitendraSingh announced the launch of HADP for Northeast in Imphal, Manipur. What does 'D' stands for in HADP?

(a) Deployment

(b) DISCOM

(c) Development

(d) Dumping

(e) Discuss

S4. Ans.(c)
Sol. The Union Minister of State (Independent Charge) for Development of North Eastern Region (DoNER), DrJitendraSingh announced the launch of “Hill Area Development Programme” (HADP) for Northeast in Imphal, Manipur.

Q5. Which of the following city in India is about to experience a wonder in the form of an underwater Metro train which will run beneath a river in the State?

(a) Chennai

(b) Kolkata

(c) Jammu and Kashmir

(d) Mumbai

(e) Lucknow

S5. Ans.(b)
Sol. Kolkata, the ‘City of Joy’ is about to experience a wonder in the form of an underwater Metro train which will run beneath the Hooghly river. It’s one of the path-breaking projects in India as never before a tunnel has been dug beneath a flowing river. The entire project is 16.6 km long, out of which 10.8 km runs under the ground.

Q6. GST Council has recently revised rates for 66 items. Pickles are now in the tax slab of __________.

(a) 5%

(b) No Tax

(c) 18%

(d) 28%

(e) 12%

S6. Ans.(e)
Sol. GST Council has recently revised rates for 66 items. Pickes are now in the tax slab of 12%.

Q7. The recently launched book “Indira Gandhi – A life in Nature” is authored by ____________.

(a) ShashiTharoor

(b) Arundhati Roy

(c) Anand Sharma

(d) Jairam Ramesh

(e) VeerappaMoily

S7. Ans.(d)
Sol. The book “Indira Gandhi – A life in Nature”, was launched by Congress president Sonia Gandhi. Jairam Ramesh is the author of the Book.

Q8. Name the person who has won the gold medal at the 17th World Individual Chess Championship for differently-abled, held in Slovakia.

(a) ParinaySandhu

(b) ArunodayDayal

(c) ShashikantKutwal

(d) ParimalAnand

(e) OmkarVerma

S8. Ans.(c)
Sol. ShashikantKutwal, a railway employee with Pune Division, has won the gold medal at the 17th World Individual Chess Championship for differently-abled, held in Slovakia.

Q9. Name the person who has been appointed as the chief operating officer (COO) of its e-commerce business Paytm Mall.

(a) AmitSinha

(b) SumitMahajan

(c) KabirNath

(d) Babban Ray

(e) Shubham Raman

S9. Ans.(a)
Sol. AmitSinha, a vice-president overlooking business and human resources at One97 Communications Ltd, the company behind the Paytm app, has been appointed as the chief operating officer (COO) of its e-commerce business Paytm Mall.

Q10. The 22nd European Union Film Festival (EUFF) has begun recently in which of the following city?

(a) London

(b) New Delhi

(c) Prague

(d) Budapest

(e) Madrid

S10. Ans.(b)

Sol. The 22nd European Union Film Festival (EUFF) premiered at Siri Fort auditorium in New Delhi with the screening of Estonian film Cherry Tobacco.

QUIZ-17

Q1. Who has been appointed as the new Vice-Chancellor of Nalanda University?

Answer: Sunaina Singh

Q2. Name the Indian forward player, who has named the Asian Hockey Federation (AHF) Player of the Year for 2016.

Answer: S V Sunil

Q3. President Pranab Mukherjee has inaugurated the "Namami Brahmaputra" festival on the banks of the river Brahmaputra in 21 districts of-

Answer: Assam

Q4. Which country has become the first country in the world to ban metals mining nationwide?

Answer: El Salvador

Q5. Name the American astronaut, who made history when she floated outside the International Space Station (ISS) and broke the record for the most spacewalks by a woman?

Answer: Peggy Whitson

Q6. As per the government announcement the returns on small savings schemes, including Public Provident Fund (PPF), National Savings Certificate (NSC) and Kisan Vikas Patra, has been lowered by 0.1 percent for the April-June (2017) quarter. Kisan Vikas Patra (KVP) investments will yield 7.6% and mature in ________.

Answer: 112 months

Q7. The Loan Agreement for New Development Bank (NDB) financing of ____________ for Development and Upgradation of Major District Roads Project in Madhya Pradesh was signed between Government of India and the New Development Bank (NDB).

Answer: US$ 350 Million

Q8. Parliament has passed the Mental Healthcare Bill, 2016, which provides healthcare and services to the people with mental illness and also decriminalizes suicide. Who is the present Union Health Minister of India?

Answer: Jagat Prakash Nadda

Q9. Which two banks have launched co-branded credit cards for the customers recently?

Answer: SBI and Karnataka Bank

Q10. Who has appointed as the new chairman of Central Board of Excise and Customs (CBEC)?

Answer: Vanaja N. Sarna

Q11. Which country has committed an 'Official Development Assistance' (ODA) of 371.345 billion yen (about Rs 21,590 crore) under 2016-2017 for various infrastructure projects, including the dedicated freight corridor in India?

Answer: Japan

Q12. Kanha tiger reserve in Madhya Pradesh has become the first tiger reserve in India to officially introduce a mascot of its own. The Mascot has been named as.................? 

Answer: Bhoorsingh the Barasingha

Q13. Prime Minister Najib Tun Razak has given the ceremonial reception at Rashtrapati Bhawan in New Delhi. Najib Tun Razak is present Prime Minister of-

Answer: Malaysia

Q14. Name the private sector bank, which has tied up with Wells Fargo (the third largest American bank by assets) to offer real-time remittances from the Indian diaspora to their relatives back home?

Answer: Axis Bank

Q15. The Indian Army has entered into an MoU with the Indian Institute of Technology Madras (IIT-M) to objective of the agreement is to identify and enhance the critical technological areas that can be enhanced in the armed forces. Who is the present Chief of Army Staff?

Answer: General Bipin Rawat

Daily GK Update 16th June 2017

India tops global remittance-receiving list 

i. India has claimed the top spot among the remittance-receiving nations, surpassing China. The United Nations, in its report, stated that Indians working across the globe sent home 62.7 billion US dollars in 2016.

ii. According to the ‘One Family at a Time’ study by the UN International Fund for Agricultural Development, about 200 million migrants globally sent more than 445 billion dollars as remittances in 2016 to their families.

Important Takeaways-

• 9th Secretary-General of United Nations is Antonio Guterres.
• Its headquarter is in New York City, USA.

GII Rankings: India 60th most innovative globally, Switzerland tops the list 

 

i. India continued to rise in the Global Innovation Index (GII) rankings for the second year in succession, after four consecutive years of decline. In 2017 rankings released in Geneva (Switzerland), India improved its position from 66 to 60.

ii. Its improvement is part of a trend both in the middle-income countries and Asian countries, many of which have improved their innovation capacities in recent years.

Top three most innovative countries in the list are-

1. Switzerland
2. Sweden
3. Netherlands

Ranking of Neighbouring countries of India-

1. China (22nd)
2. Sri Lanka (90th)
3. Nepal (109th)
4. Pakistan (113th)
5. Bangladesh (114th)

Important Takeaways-

• The first report of GII was released in 2007.
• Currently, it has 14 Advisory Members.

Centre launches IDCF to reduce child deaths due to diarrhoea 

i. The Ministry of Health and Family Welfare has launched the Intensified Diarrhea Control Fortnight (IDCF) in order to intensify efforts to reduce child deaths due to diarrhoea. 

ii. Through this initiative, the Ministry will mobilize health personnel, State Governments and other stakeholders to prioritize investment in control of diarrhea, one of the most common childhood illnesses.

iii. It aims to create mass awareness about the most effective and low-cost diarrhoea treatment, a combination of Oral Rehydration Salt (ORS) solution and Zinc tablets. 

Important Takeaways-

• Jagat Prakash Nadda is the Ministers of Health and Family Welfare of India.

Asian Infrastructure Investment Bank grants USD 150 mn loan for India Infrastructure Fund 

i. China-led Asian Infrastructure Investment Bank has approved USD 150 million equity investment loan to the India Infrastructure Fund. It is the bank's first such loan to fund private projects.

ii. The Board of Directors of the AIIB, who met in Jeju in South Korea has approved USD 150 million equity investment to the India Infrastructure Fund. The bank, in which India is a lead partner, has approved two loans and one equity investment totaling USD 324 million to support infrastructure projects in India, Georgia and Tajikistan. 

Important Takeaways-

• Asian Infrastructure Investment Bank (AIIB) headquarters in Beijing, China.

Yes Bank partners with TerraPay for faster international remittance 

i. Private sector lender Yes Bank has partnered with mobile payments switch TerraPay to enable real-time money transfer to bank accounts in India. Powered by TerraPay’s global clearing and settlement service, the partnership will make it faster and convenient for consumers to send money to any bank account.
ii. TerraPay has partnered with Yes Bank in a Rupee Drawing Arrangement which enables TerraPay’s network partners to make instant cross-border money transfer to bank accounts in India.
iii. For bank accounts other than Yes Bank accounts, Yes Bank will disburse funds using the immediate payment service, popularly known as IMPS. The service is available 24X7.

Banking Takeaways-

• Mr. Rana Kapoor is the Managing Director & CEO of YES Bank.
• The Bank was founded in 2004.
• Yes Bank is Headquartered in Mumbai.
• TerraPay is a Global transaction processing, clearing and settlement service for mobile wallets.

RBI places restrictions on banking activities of Central Bank of India 

i. The RBI has placed Central Bank of India under prompt corrective action  (PCA) which puts restricts on banking activities such as from lending, hiring and expanding branches.
ii. According to the RBI, the PCA has been triggered in view of negative return on assets and high ratio of bad loans. So far, RBI has triggered PCAs for four banks – IDBI Bank, UCO Bank, Dena Bank and Indian Overseas Bank. Central Bank has reported loss of Rs 2439 crore for the fiscal year 2016-17.

Banking Takeaways-

• Shri. Rajeev Rishi is the Chairman & Managing Director of Central Bank of India.
• CBI is Headquartered in Mumbai.

China launches 1st X-ray space telescope to study black holes 

i. China successfully launched its first X-ray space telescope to study black holes, pulsars and gamma-ray bursts. The 2.5-tonne Hard X-ray Modulation Telescope (HXMT), named 'Insight,' was launched from Jiuquan Satellite Launch Center in northwest China's Gobi desert.
ii. It was delivered into orbit, 550km (341 miles) above the Earth, by the Long March-4B rocket.

Important Takeaways-

• The capital of China is  Beijing and its Currency is Renminbi.
• The President of China is Xi Jinping.
• Xichang Satellite Launch Cente is in China.

Neeru Chadha elected as first Indian woman Member of ITLOS

i. Indian nominee Neeru Chadha became the first Indian Woman to be elected as the Member of International Tribunal for the Law of the Sea (ITLOS). Chadha, the international law expert, got 120 votes with the highest in the Asia-Pacific group.

ii. She will have a nine-year term as the Judge at ITLOS from 2017 to 2026. Currently, an eminent jurist from India P Chandrasekhara Rao is a judge at the tribunal. He was elected as the member of the tribunal in 1996 and his term will expire in September 2017.

Important Takeaways-

• The Hamburg (Germany)-based ITLOS was established in 1996.
• Ms. Chadha is only the second woman to be the judge of ITLOS in its two decades of existence.

TCS executive Ramanathan Ramanan to head Atal Mission under NITI Aayog

i. The government of India has appointed a senior executive of Tata Consultancy Services Ramanathan Ramanan to head Atal Innovation Mission, its initiative to promote entrepreneurship in the country.

ii. Ramanathan Ramanan, senior vice president at TCS, has been appointed as mission director of Atal Innovation Mission, under the government’s premier think tank NITI Aayog, in the rank of additional secretary on secondment basis from the IT bellwether for two years initially. According to the notification, Ramanan’s appointment will be without pay and allowances.

Important Takeaways-

• Chairperson of NITI Ayog is Shri Narendra Modi.
• Vice Chairperson of NITI Ayog is Dr. Arvind Panagariya.

Israeli author David Grossman wins Man Booker International Prize 2017

i. Israeli author David Grossman has won the Man Booker International Prize 2017 for his novel `A Horse Walks Into a Bar'. Grossman beat out five other finalists, including fellow Israeli author Amos Oz for the counterpart to Britain's prestigious Booker Prize.

ii. Grossman's novel is about a failing standup comic and his final performance. The Award has a prize of 50,000 pounds ($64,000) that is split evenly between Grossman and translator Jessica Cohen.

Static Takeaways-

• Arundhati Roy won the Booker Prize for her brilliant and poetic novel “The God of Small Things” in the year 1997 making her the first Indian to receive the prestigious award.
• The prize for 2016 Booker prize was awarded to `The Vegetarian' by South Korea's Han Kang.

Yeshe Dorjee Thongshi conferred Bhupen Hazarika Award

i. The Fifth Bhupen Hazarika National Award, 2017 has been conferred to an eminent writer from Arunachal Pradesh Yeshe Dorjee Thongshi.
ii. The award consists of 51,000 rupees, a memento and a certificate.
iii. His most important novel is Mauna Onth Mukhar Hriday (Silent lips, murmuring hearts) which won the Sahitya Akademi award in 2005.

Important Takeaways-

• PM Modi had recently inaugurated India’s longest bridge in Assam, it has been named after Bhupen Hazarika.

Banking Awareness,

Q1. A Committee on Banking Supervision which provides a forum for regular cooperation on banking supervisory matters and to enhance understanding of key supervisory issues and improve the quality of banking supervision worldwide.

(a) BIS

(b) BASEL

(c) European Banking Supervisors

(d) All of the above

(e) None of the given options is true

S1. Ans.(b)
Sol. BASEL is a set of international banking regulations put forth by the Basel Committee on Bank Supervision, which set out the minimum capital requirements of financial institutions with the goal of minimising credit risk.

Q2. DIPP is the nodal agency in the field of foreign investments in India. What is the full form of DIPP?

(a) Department of Industry Policy and Promotion

(b) Department of Innovation Policy and Promotion

(c) Department of Industrial Policy and Promotion

(d) Department of Industrial Policy and Partnership

(e) Department of Internet Pulse and Partnership

S2. Ans.(c)
Sol. Department of Industrial Policy and Promotion (DIPP) is working under the Ministry of Commerce and Industry, Government of India. This department is responsible for formulation and implementation of promotional and developmental measures for growth of the industrial sector, keeping in view the national priorities and socio-economic objectives.

Q3. The letter ‘R’ denotes which word in the term IFRS?

(a) Restructuring

(b) Reporting

(c) Recognising

(d) Remote

(e) Recurring

S3. Ans.(b)
Sol. International Financial Reporting Standards (IFRS Standards) is a single set of accounting standards, developed and maintained by the International Accounting Standards Board (the Board) with the intention of those standards being capable of being applied on a globally consistent basis—by developed, emerging and developing economies—thus providing investors and other users of financial statements with the ability to compare the financial performance of publicly listed companies on a like-for-like basis with their international peers.

Q4. Which of the following is a bank account opened by NRI to deposit income mainly generated from an Indian source?

(a) NRI

(b) NRP

(c) NRO

(d) FCNR

(e) None of the given options is true

S4. Ans.(c)
Sol. Non-Resident Ordinary (NRO) Account held to manage the income earned in India like rent, pension, dividend, interest, etc. It is opened either by the citizen of India, while temporarily shifting to abroad or by an NRI by transferring money from his home country or from his other NRO account. A normal bank account can also be redesignated to NRO account when the residential status of the account holder is changed to NRI. The account is mainly used to park money earned from Indian sources in India.

Q5. In it, a worldwide recognised identification code used at the time of international credit transfer between banks and also when there is an exchange of messages between banks.

(a) IFSC Code

(b) SWIFT Code

(c) NEFT Code

(d) BIS Code

(e) FCRA Code

S5. Ans.(b)
Sol. SWIFT stands for Society for Worldwide Interbank Financial Telecommunication Code. The code is also used when there is an interchange of messages between banks. The code is a combination of 8 or 11 alphanumeric characters. First 4 characters bank code, Next 2 characters country code, Next 2 characters location code, Last 3 characters are optional that represents branch code.

Q6. In which of the following a credit facility is provided by the bank to an entity for a specific purpose, to be repayable after a short duration?

(a) Advances

(b) Loans

(c) Security

(d) Liabilities

(e) Goodwill

S6. Ans.(a)
Sol. Advances are the source of finance, which are provided by the banks to the companies to meet short-term financial requirement. They are granted against securities which are as under:
• Primary Security: Hypothecation of Debtors, Stock Pro-notes etc.
• Collateral Security: Mortgage of land and buildings, machinery, etc.
• Guarantees: Guarantees given by partners, directors or promoters, etc.

Q7. RRBs are working in all states of the country except _______.

(a) Sikkim

(b) Goa

(c) Andhra Pradesh

(d) Bihar 

(e) Both (a) and (b)

S7. Ans.(e)
Sol. RRB’s were established by the Government of India in the year 1975. Their establishment was followed by the 1976 Regional Rural Banks Act. These have had the main agenda to develop the economy of the rural areas and to enlarge credit amount of these areas as well as the agricultural sectors.

Q8. This organisation is made for empowering Micro, Small and Medium enterprises in India?

(a) ECGC

(b) RBI

(c) RRB

(d) SIDBI

(e) NABARD

S8. Ans.(d)
Sol. SIDBI is aimed to aid the growth and development of MSME in India.

Q9. ECS stand for-

(a) External Commercial System

(b) Electronic Clearing System

(c) Electronic Commercial System

(d) Electrical Clearing Service

(e) Electronic Clearing Service

S9. Ans.(e)
Sol. ECS stands for Electronic Clearing Service. It allows companies, Government departments and institutions which have to make bulk payments in the form of dividend warrants and interest payments on bonds to investors to transfer the proceeds electronically to customers’ bank accounts.

Q10. Nationalisation of banks took place in India in how many phases?

(a) 2

(b) 1

(c) 3

(d) 4

(e) 5

S10. Ans.(a)
Sol. Nationalisation of banks took place in India in two phases, in 1969 and 1980.

Q11. A closed economy is?

(a) Only Exports take place

(b) Only Imports take place

(c) Imports and exports take place

(d) Neither Imports nor Exports take place

(e) None of the given options is true

S11. Ans.(d)
Sol. A closed economy means no imports are brought in and no exports are sent out so as to provide consumers with everything that they need from within the economy’s borders.

Q12. Which organisation carry out open market operations?

(a) SEBI

(b) SIDBI

(c) RBI

(d) NABARD

(e) Finance Ministry

S12. Ans.(c)
Sol. RBI carries out open market operations. The open market operation is in which a country will conduct trade with outside regions.

Q13. What was the Purpose of setting up Narasimhan committee-2?

(a) Efficiency and productivity

(b) Banking reform process

(c) Export of IT sector

(d) Fiscal Reform process

(e) None of the given options is true

S13. Ans.(b)
Sol. In 1998 to analyse India’s banking sector and recommending legislation and regulations to make it more effective, competitive and efficient issued by banks or other financial institutions.

Q14. The largest bank Imperial Bank was nationalised in 1955 and rechristened as State Bank of India on the recommendation of which committee?

(a) Rangarajan Committee

(b) Chelliah Committee

(c) Rekhi Committee

(d) Gorewala Committee

(e) None of the given options is true

S14. Ans.(d)
Sol. Bank of Madras merged into the other two in British India i.e. Bank of Calcutta and Bank of Bombay to form the Imperial Bank of India which became the State Bank of India on the recommendation of Gorewala Committee.

Q15. Who monitors Priority Sector Lending (PSL) in commercial banks?

(a) Reserve Bank of India (RBI)

(b) Small Industries Development Bank of India (SIDBI)

(c) National Bank for Agriculture and Rural Development (NABARD)

(d) Government of India (GOI)

(e) Finance Ministry (FM)

S15. Ans.(a)
Sol. The priority sector lending by commercial banks is monitored by Reserve Bank of India (RBI) through periodical returns received from them.