Banking Awareness

Q1. ____________, who represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured. 

(a) Cashier

(b) Broker

(c) Agent

(d) Customer

(e) Banker

S1. Ans.(b)

Sol. Broker, who represents the interests of the insured in searching for insurance coverage at the lowest cost and highest benefit to the insured. The broker may also be an agent of the insurer for purposes of policy collection and delivery of the policy. 

Q2. In which among the following year National Insurance Company Limited (NICL) was incorporated?

(a) 1956

(b) 1949

(c) 1934

(d) 1919

(e) 1906

S2. Ans.(e)
Sol. National Insurance Company Limited (NICL) was incorporated in the year 1906. After nationalization it was merged, along with 21 foreign and 11 Indian companies, to form National Insurance Company Ltd.

Q3. Agriculture Insurance Company Of India Limited’ (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under- 

(a) Companies Act, 1956 

(b) IRDA Act, 1999

(c) Reserve Bank of India Act, 1934

(d) SEBI Act, 1992

(e) None of the given options is true

S3. Ans.(a)
Sol. Agriculture Insurance Company Of India Limited (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002.

Q4. The written insurance contract that may include all clauses, riders and endorsements. It is called?

(a) Liabilities

(b) Premium

(c) Installment

(d) Policy

(e) Assets

S4. Ans.(d)
Sol. Policy is the written insurance contract that may include all clauses, riders and endorsements.

Q5. UHIS has launched by the Government of India is already in existence for persons and families below the poverty line with the element of subsidy from the Government. UHIS stands for-

(a) Universal Health Insurance System

(b) Universal Health Insurance Service

(c) Universal Health Insurance Scheme

(d) Universal Health Insurance Solutions

(e) Universal Health Insurance Scenario

S5. Ans.(c)
Sol. The Universal Health Insurance Scheme (UHIS) has launched by the Government of India is already in existence for persons and families below the poverty line with element of subsidy from the Government. In addition, the Rashtriya Swasthya Bima Yojana (RSBY) was also rolled out from by the Government to provide the health insurance coverage for Below Poverty Line (BPL) families.

Q6. Agriculture Insurance Company of India Limited (AIC) was incorporated in which year?

(a) 20th December 1999

(b) 20th December 2007

(c) 20th December 1992

(d) 20th December 2004

(e) 20th December 2002

S6. Ans.(e)
Sol. Agriculture Insurance Company Of India Limited (AIC) was incorporated to exclusively cater to the insurance needs of the persons engaged in agriculture and allied activities in India under the Companies Act, 1956 on 20th December 2002.

Q7. IBAI was incorporated as a Company under Section 25 of the Companies Act, 1956. What is the meaning of "B" in IBAI?

(a) Basel

(b) Broadcasting

(c) Board

(d) Brokers

(e) Banking

S7. Ans.(d)
Sol. Insurance Brokers Association of India (IBAI) was incorporated as a Company under Section 25 of the Companies Act, 1956.

Q8. Where is the head office of Agriculture Insurance Company of India Limited (AIC)?

(a) Hyderabad

(b) Mumbai

(c) New Delhi

(d) Kolkata

(e) Chennai

S8. Ans.(c)
Sol. The head office of Agriculture Insurance Company of India Limited (AIC) is in New Delhi.

Q9. Nippon Life Insurance has signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in order to increase its stake in Reliance Life Insurance from 26 per cent to 49 per cent. Nippon Life Insurance based in-

(a) Germany

(b) Japan

(c) Canada

(d) USA

(e) France

S9. Ans.(b)
Sol. Nippon Life Insurance, Japan’s second largest life insurance company, has signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in order to increase its stake in Reliance Life Insurance from 26 per cent to 49 per cent.

Q10. ___________ insurance gives protection to the vehicle owner against damages to his/her vehicle and pays for any Third Party Liability determined as per law against the owner of the vehicle. 

(a) Motor Insurance

(b) Travel Insurance

(c) Group Insurance

(d) Life Insurance

(e) Health Insurance

S10. Ans.(a)
Sol. Motor insurance gives protection to the vehicle owner against (i) damages to his/her vehicle and (ii) pays for any Third Party Liability determined as per law against the owner of the vehicle.  Third Party Insurance is a statutory requirement. The owner of the vehicle is legally liable for any injury or damage to third party life or property caused by or arising out of the use of the vehicle in a public place. Driving a motor vehicle without insurance in a public place is a punishable offence in terms of the Motor Vehicles Act, 1988.

Q11. Which among the following companies has not contributed towards the share capital of Agriculture Insurance Company of India Limited (AIC)? 

(a) Insurance Regulatory and Development Authority of India (IRDAI)

(b) General Insurance Corporation of India (GIC)

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

(d) Oriental Insurance Company Limited (OICL)

(e) National Insurance Company Limited (NICL)

S11. Ans.(a)
Sol. Promoters (Share Holding) of Agriculture Insurance Company of India Limited (AIC) is given below:-
General Insurance Corporation of India - 35 %
National Bank for Agriculture And Rural Development (NABARD) - 30 %
National Insurance Company Limited - 8.75 %
The New India Assurance Company Limited - 8.75 %
The Oriental Insurance Company Limited - 8.75 %
United India Insurance Company Limited - 8.75 %

Q12. Where is the head office of National Insurance Company Limited (NICL)?

(a) Hyderabad

(b) Kolkata

(c) New Delhi

(d) Mumbai

(e) Chennai

S12. Ans.(b)
Sol. The Head Office of National Insurance Company Limited (NICL) is in Kolkata.

Q13. What is the authorised capital of National Insurance Company Limited (NICL)?

(a) Rs.1500 crore 

(b) Rs.100 crore 

(c) Rs.200 crore

(d) Rs.500 crore 

(e) Rs.1000 crore

S13. Ans.(c)
Sol. The authorized capital and paid-up equity capital of the National Insurance Company Limited (NICL) is Rs.200 crore and Rs.100 crore respectively.

Q14. IRDAI has allowed insurers to invest up to ___________ in Additional Tier 1 (AT1) bonds, that are issued by banks to augment their tier 1 capital, in order to expand the pool of eligible investors for the banks.

(a) 25 per cent 

(b) 30 per cent 

(c) 20 per cent 

(d) 10 per cent

(e) 15 per cent

S14. Ans.(d)
Sol. IRDAI has allowed insurers to invest up to 10 per cent in additional tier 1 (AT1) bonds, that are issued by banks to augment their tier 1 capital, in order to expand the pool of eligible investors for the banks.

Q15. Who is the present Chairman of IRDAI?

(a) Harsh Kumar Bhanwala

(b) Kshatrapati Shivaji

(c) Urjit Patel

(d) Ajay Tyagi

(e) T S Vijayan

S15. Ans.(e)
Sol. Mr. T S Vijayan took charge as Chairman of Insurance Regulatory & Development Authority of India in February 2013. Since then Mr. Vijayan has been playing a key role in various initiatives for enhancing insurance awareness and making insurance affordable to all sections of population. He has also taken various measures for optimum utilization of technology in the insurance space.

Banking Awareness

Q1. ___________ is the economic device whereby the individual or business pays a cost (premium) in exchange for protection against financial loss.

(a) Coverage

(b) Insured

(c) Endorsement

(d) Exclusion

(e) Insurance

S1. Ans.(e)
Sol. Insurance is the economic device whereby the individual or business pays a cost (premium) in exchange for protection against financial loss. The agreement is a contract also known as an insurance policy.

Q2. There are at present ________ Insurance Ombudsman in different locations and any person who has a grievance against an insurer.

(a) 19

(b) 20

(c) 15

(d) 17

(e) 13

S2. Ans.(d)
Sol. There are at present 17 Insurance Ombudsman in different locations and any person who has a grievance against an insurer, may himself or through his legal heirs, nominee or assignee, make a complaint in writing to the Insurance ombudsman within whose territorial jurisdiction the branch or office of the insurer complained against or the residential address or place of residence of the complainant is located.

Q3. The Insurance Ombudsman scheme was created by the Government of India for individual _________________ to have their complaints settled out of the courts' system in a cost-effective, efficient and impartial way.

(a) customers

(b) agents

(c) policyholders

(d) bankers

(e) None of the given options is true

S3. Ans.(c)
Sol. The Insurance Ombudsman scheme was created by the Government of India for individual policyholders to have their complaints settled out of the courts system in a cost-effective, efficient and impartial way.

Q4. Which among the following banks has inked pact with the state-owned general insurer The New India Assurance Company Ltd to sell policies through its branches?

(a) Punjab National Bank

(b) Canara Bank

(c) ICICI Bank

(d) SBI

(e) HDFC Bank

S4. Ans.(b)
Sol. Canara Bank has inked pact with the state-owned general insurer The New India Assurance Company Ltd. to sell policies through its branches. The pact allows Canara Bank to offer non-life insurance products to its customers across metros and tier II and III cities through the bank’s extensive network of over 6,000 branches.

Q5. Which company has announced the launch of an artificial intelligence-based application 'SPOK' that can automatically read, understand, categorise, prioritise and respond to customer emails sent to the private insurer?

(a) HDFC Life

(b) NICL

(c) Reliance 

(d) TCS

(e) Wipro

S5. Ans.(a)
Sol. HDFC Life announced the launch of an artificial intelligence-based application 'SPOK' that can automatically read, understand, categorise, prioritise and respond to customer emails sent to the private insurer.

Q6. You can approach the Insurance Ombudsman with the complaint if, insurance company not responded your query for how many days?

(a) 30 days

(b) 40 days

(c) 50 days

(d) 60 days

(e) 90 days

S6. Ans.(a)
Sol. ou can approach the Ombudsman with the complaint if:
You have first approached your insurance company with the complaint and
1. They have rejected it
2. Not resolved it to your satisfaction or
3. Not responded to it at all for 30 days
4. Your complaint pertains to any policy you have taken in your capacity as an individual and

5. The value of the claim including expenses claimed is not above Rs 30 lakhs.

Q7. GIC Re has become the first reinsurer to open an office at India’s first International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City). Where is the head office of GIC Re?

(a) New Delhi

(b) Mumbai

(c) Kolkata

(d) Bengaluru

(e) Chennai

S7. Ans.(b)
Sol. GIC Re has become the first reinsurer to open an office at India’s first International Financial Services Centre (IFSC) at Gujarat International Finance Tec-City (GIFT City). Mumbai is the head office of GIC Re.

Q8. Prime Minister Narendra Modi has unveiled the new scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) on-

(a) 13th January 2015

(b) 13th January 2013

(c) 13th January 2016

(d) 13th January 2017

(e) 13th January 2014

S8. Ans.(c)
Sol. India is the land of farmers where the maximum proportion of rural population depends on agriculture. Hon'ble Prime Minister Shri Narendra Modi has unveiled the new scheme Pradhan Mantri Fasal Bima Yojana (PMFBY) on 13th January 2016.

Q9.  The “Central Government Health Scheme” (CGHS) provides comprehensive health care facilities for the Central Govt. employees and pensioners and their dependents residing in CGHS covered cities. CGHS started in-

(a) 1949

(b) 1962

(c) 1969

(d) 1954

(e) 1965

S9. Ans.(d)
Sol. The “Central Government Health Scheme” (CGHS) provides comprehensive health care facilities for the Central Govt. employees and pensioners and their dependents residing in CGHS covered cities. Started in New Delhi in 1954, Central Govt. Health Scheme is now in operation in many cities of India.

Q10. Pradhan Mantri Suraksha Bima Yojana (PMSBY) is Indian Government’s accidental insurance cover which was announced in the 2015 Budget. The annual premium of PMSBY is scheme is _________ excluding the service tax. 

(a) Rs.30 

(b) Rs.45

(c) Rs.28

(d) Rs.56

(e) Rs.12

S10. Ans.(e)
Sol. Pradhan Mantri Suraksha Bima Yojana (PMSBY) is Indian Government’s accidental insurance cover which was announced in the 2015 Budget This scheme is available to those between the ages of 18 and 70 years and they must have a bank account. The annual premium of the scheme is Rs.12 excluding the service tax.

Q11. RSBY (Rashtriya Swasthiya Bima Yojana) has been launched to provide health insurance coverage for BPL families. BPL stands for-?

(a) Banking Poverty Line 

(b) Below Poverty Level 

(c) Below Production Line 

(d) Base Poverty Line 

(e) Below Poverty Line

S11. Ans.(e)
Sol. RSBY (Rashtriya Swasthiya Bima Yojana) has been launched to provide health insurance coverage for Below Poverty Line (BPL) families.

Q12. Beneficiaries need to pay only ________ as registration fee under Rashtriya Swasthiya Bima Yojana while Central and State Government pays the premium to the insurer selected by the State Government on the basis of a competitive bidding.

(a) Rs.100 

(b) Rs.50 

(c) Rs.150 

(d) Rs.30

(e) Rs.10

S12. Ans.(d)
Sol. Beneficiaries need to pay only Rs. 30/- as registration fee under Rashtriya Swasthiya Bima Yojana while Central and State Government pays the premium to the insurer selected by the State Government on the basis of a competitive bidding.

Q13. Name the scheme which is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme. 

(a) Aam Aadmi Bima Yojana (AABY)

(b) Central Government Health Scheme (CGHS)

(c) Employees’ State Insurance Scheme (ESIS)

(d) Rashtriya Swasthiya Bima Yojana (RSBY)

(e) Universal Health Insurance Scheme (UHIS)

S13. Ans.(c)
Sol. Employees’ State Insurance Scheme of India (ESIS) is a multidimensional social security system tailored to provide socio-economic protection to worker population and their dependants covered under the scheme. Besides full medical care for self and dependants, that is admissible from day one of insurable employment, the insured persons are also entitled to a variety of cash benefits in times of physical distress due to sickness, temporary or permanent disablement etc.

Q14. Janashree Bima Yojana (JBY) was launched on-

(a) 10th August 2002

(b) 10th August 2000

(c) 10th August 2004

(d) 10th August 2006

(e) 10th August 2008

S14. Ans.(b)
Sol. Janashree Bima Yojana (JBY) was launched on 10th August 2000. The Scheme replaced Social Security Group Insurance Scheme (SSGIS) and Rural Group Life Insurance Scheme (RGLIS).

Q15. In Insurance world, a cause of loss is known as?

(a) Peril

(b) Tort

(c) Risk

(d) Negligence

(e) Deductible

S15. Ans.(a)
Sol. The basic and broad causes of loss forms are named perils forms. They provide coverage for loss from only the particular causes that are listed in the policy as covered.

Banking Awareness,

Q1. _____________ a/an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.
(a) Insurance
(b) Banking
(c) Market Risk
(d) Premium
(e) Prompt Corrective Action (PCA)

S1. Ans.(a)
Sol. Insurance is an arrangement by which a company or the state undertakes to provide a guarantee of compensation for specified loss, damage, illness, or death in return for payment of a specified premium.

Q2. In which among the following year the Life Insurance sector and Life Insurance Corporation came into existence?
(a) 1949
(b) 1935
(c) 1951
(d) 1962
(e) 1956

S2. Ans.(e)
Sol. An Ordinance was issued on 19th January, 1956 nationalising the Life Insurance sector and Life Insurance Corporation came into existence in the same year.

Q3. IRDA was constituted as an _________ to regulate and develop the insurance industry in 1999. 
(a) Regulatory body
(b) Amendment body
(c) autonomous body
(d) All of the above
(e) None of the given options is true

S3. Ans.(c)
Sol. Insurance Regulatory and Development Authority (IRDA) set up as autonomous body under the IRDA Act in 1999.

Q4. Where is the head office of United India Insurance Company Limited?
(a) Pune
(b) Kolkata
(c) Mumbai
(d) New Delhi
(e) Chennai

S4. Ans.(e)
Sol. Chennai, Tamil Nadu is the head office of United India Insurance Company Limited

Q5. Who is the present Chairman cum Managing Director of Oriental Insurance Company Ltd? 
(a) VK Sharma
(b) A V Girija Kumar
(c) G Srinivasan
(d) Alamelu T Lakshmanachari
(e) None of the given options is true

S5. Ans.(b)
Sol. A V Girija Kumar is the present Chairman cum Managing Director of New Delhi based Oriental Insurance Company Ltd.

Q6. In which among the following year United India Insurance Company Limited was incorporated?
(a) 1919
(b) 1972
(c) 1956
(d) 1949
(e) 1938

S6. Ans.(e)
Sol. United India Insurance Company Limited was incorporated in 1938.

Q7. IBAI was incorporated as a Company under Section 25 of the Companies Act, 1956. What is the meaning of "B" in IBAI?
(a) Basel
(b) Broadcasting
(c) Board
(d) Brokers
(e) Banking

S7. Ans.(d)
Sol. Insurance Brokers Association of India (IBAI) was incorporated as a Company under Section 25 of the Companies Act, 1956.

Q8. Where is the head office of Agriculture Insurance Company of India Limited (AIC)?
(a) Hyderabad
(b) Mumbai
(c) New Delhi
(d) Kolkata
(e) Chennai

S8. Ans.(c)
Sol. The head office of Agriculture Insurance Company of India Limited (AIC) is in New Delhi.

Q9. Nippon Life Insurance has signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in order to increase its stake in Reliance Life Insurance from 26 per cent to 49 per cent. Nippon Life Insurance based in-
(a) Germany
(b) Japan
(c) Canada
(d) USA
(e) France

S9. Ans.(b)
Sol. Nippon Life Insurance, Japan’s second largest life insurance company, has signed definitive agreements to invest Rs 2,265 crore (US$ 332.32 million) in order to increase its stake in Reliance Life Insurance from 26 per cent to 49 per cent.

Q10. An insurance ________ is the amount of money that an individual or business must pay for an insurance policy.
(a) premium
(b) agent
(c) health insurance
(d) broker
(e) clause

S10. Ans.(a)
Sol. An insurance premium is the amount of money that an individual or business must pay for an insurance policy. The insurance premium is considered income by the insurance company once it is earned, and also represents a liability in that the insurer must provide coverage for claims being made against the policy.

Q11. In 1993, the Government set up a committee under the chairmanship of _________ former Governor of RBI, to propose recommendations for reforms in the insurance sector.
(a) Gorwala Committee
(b) RN Malhotra
(c) B Sivaraman Committee
(d) Rangarajan Committee
(e) None of the given options is true

S11. Ans.(b)
Sol. In 1993, the Government set up a committee under the chairmanship of RN Malhotra, former Governor of RBI, to propose recommendations for reforms in the insurance sector.The objective was to complement the reforms initiated in the financial sector.

Q12. IRDA stands for-
(a) Insurance Regulatory and Department Authority
(b) Insurance Regulatory and Development Assembly
(c) Insurance Regulatory and Development Association
(d) Insurance Regulatory and Development Authority
(e) Insurance Regulatory and Development Agency

S12. Ans.(d)
Sol. for IRDA stands Insurance Regulatory and Development Authority.

Q13. Sun Life Financial Inc plans to increase its stake from 26 per cent to 49 per cent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya Birla Nuvo Ltd, through buying of shares worth Rs 1,664 crore (US$ 244.14 million). Sun Life Financial Inc based in-
(a) USA
(b) Germany
(c) Japan
(d) Canada
(e) France

S13. Ans.(d)
Sol. Canada-based Sun Life Financial Inc plans to increase its stake from 26 per cent to 49 per cent in Birla Sun Life Insurance Co Ltd, a joint venture with Aditya Birla Nuvo Ltd, through buying of shares worth Rs 1,664 crore (US$ 244.14 million).

Q14. The term _______________ relates to a type of insurance that essentially covers your medical expenses. 
(a) Health Insurance
(b) Life Insurance
(c) Travel Insurance
(d) Group Insurance
(e) Motor Insurance

S14. Ans.(a)
Sol. The term ‘Health Insurance’ relates to a type of insurance that essentially covers your medical expenses. A health insurance policy like other policies is a contract between an insurer and an individual / group in which the insurer agrees to provide specified health insurance cover at a particular “premium” subject to terms and conditions specified in the policy.

Q15. The General insurance industry was nationalized in _________ and 107 insurers were grouped and amalgamated into four Companies. 
(a) 1949
(b) 1956
(c) 1972
(d) 1982
(e) 1988

S15. Ans.(c)
Sol. The General insurance industry was nationalized in 1972 and 107 insurers were grouped and amalgamated into four Companies – National Insurance Co. Ltd., The New India Assurance Co. Ltd., The Oriental Insurance Co. Ltd. and United India Insurance Co. Ltd.

Banking Awareness

Q1. Who has been appointed as the Managing Director and Chief Executive Officer of IDFC Bank with effect from July 16th 2017 for three years?
(a) Sunil Mehta
(b) Melwyn Rego
(c) Rajkiran Rai G
(d) Sunil Kakar
(e) Vikram Limaye

S1. Ans.(d)
Sol. IDFC Ltd announced the elevation of its CFO Sunil Kakar as the Managing Director and Chief Executive Officer of the company with effect from July 16th 2017 for three years. Mr. Kakar has also been appointed as additional director. Both the appointments are subject to shareholders' approval at the annual general meeting (AGM). Besides, the company announced that the Board has approved the resignation of veteran banker Vikram Limaye from the post of MD and CEO who is set to join leading stock exchange NSE as its new Managing Director and CEO.

Q2. As per the amendment, the pecuniary jurisdiction of the Banking Ombudsman to pass an award has been doubled to _____ rupees. 
(a) 20 lakh rupees
(b) 10 lakh rupees
(c) 25 lakh rupees
(d) 50 lakh rupees
(e) 5 lakh rupees

S2. Ans.(a)
Sol. The central bank has extended the scope of Banking Ombudsman Scheme. As per RBI, under the amended scheme, a customer would also be able to lodge a complaint against the bank for its non-adherence to RBI instructions with regard to mobile banking/ electronic banking services in India. As per the amendment, the pecuniary jurisdiction of the Banking Ombudsman to pass an award has been doubled to 20 lakh rupees. The Reserve Bank extended the scope of Banking Ombudsman Scheme under which banks could be penalized for mis-selling third-party products like insurance and mutual funds via mobile or electronic banking.

Q3. Capital markets regulator SEBI has relaxed takeover norms for the acquisition of stressed assets of listed companies to help the government and the RBI in their efforts to tackle bad loans. What is the meaning of "B" in SEBI?
(a) Base
(b) Business
(c) Broker
(d) Bank
(e) Board

S3. Ans.(e)

Sol. Capital markets regulator, SEBI (Securities Exchange Board of India) relaxed takeover norms for the acquisition of stressed assets of listed companies to help the government and the RBI in their efforts to tackle bad loans. SEBI Chairman Ajay Tyagi took the decision after a board meeting in Mumbai.

Q4. Asian Infrastructure Investment Bank (AIIB) 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. AIIB based in-?
(a) France
(b) Australia
(c) China
(d) Germany
(e) USA

S4. Ans.(c)
Sol. China-led Asian Infrastructure Investment Bank (AIIB) 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.

Q5. World Bank's Board of Executive Directors has approved a loan assistance of __________ million dollars for the Assam State Public Finance Institutional Reforms (ASPIRe) Project.
(a) 103 million dollars
(b) 44 million dollars
(c) 502 million dollars
(d) 328 million dollars
(e) 1005 million dollars

S5. Ans.(b)

Sol. World Bank's Board of Executive Directors has approved a loan assistance of 44 million dollars for the Assam State Public Finance Institutional Reforms (ASPIRe) Project. The loan was sanction by World Bank (International Bank for Reconstruction and Development) in its meeting held at Washington DC, USA.

Q6. Which among the following countries has contributed $100,000 to a UN fund to help developing countries actively participate in the discussion of tax issues, becoming the first country to make the contribution?
(a) India
(b) UK
(c) Austria
(d) Canada
(e) China

S6. Ans.(a)

Sol. India has contributed $100,000 to a UN fund to help developing countries actively participate in the discussion of tax issues, becoming the first country to make the contribution. The UN Tax Trust Fund aims to support the work of the Committee of Experts on International Cooperation in Tax Matters.

Q7. Which bank has started insolvency resolution process against Lanco Infratech Ltd. following a directive from the Reserve Bank of India (RBI), while this is the first resolution process initiated by the lenders against 12 large borrowers identified by the RBI recently?
(a) State Bank of India
(b) IDBI Bank
(c) Punjab National Bank
(d) Bank of India
(e) ICICI Bank

S7. Ans.(b)
Sol. IDBI Bank has started insolvency resolution process against Lanco Infratech Ltd. following a directive from the Reserve Bank of India (RBI), While this is the first resolution process initiated by the lenders against 12 large borrowers identified by the RBI recently.

Q8. Stepping up its fight against tax evasion, the Centre has made it mandatory to quote the Aadhaar number for opening bank accounts and for transactions exceeding-
(a) Rs.10,000
(b) Rs.80,000
(c) Rs.50,000
(d) Rs.1,00,000
(e) Rs.1,50,000

S8. Ans.(c)
Sol. Stepping up its fight against tax evasion, the Centre has made it mandatory to quote the Aadhaar number for opening bank accounts and for transactions exceeding Rs.50,000. With the amendments to the Prevention of Money Laundering (Maintenance of Records) Rules, 2005 notified earlier this month, banks will have to demand both Aadhaar and the Permanent Account Number (PAN) for verification of identity.

Q9. The Reserve Bank of India has initiated PCA on Bank of Maharashtra placing a restriction on the banking activities. What is the meaning of "A" in PCA?
(a) Against
(b) Assets
(c) Association
(d) Action
(e) Agency

S9. Ans.(d)

Sol. The Reserve Bank of India has initiated prompt corrective action (PCA) on Bank of Maharashtra placing a restriction on the banking activities. This RBI has said that the action is taken on the bank in view of the high level of bad loans. This is the sixth bank to be placed under PCA by the RBI and of this five banks were placed under PCA in the last three months. RBI has initiated PCA on Central Bank of India, IDBI Bank, UCO Bank, Dena Bank and Indian Overseas Bank.

Q10. Which among the following international organisation has cleared a USD 250-million loan for making Indian youth more employable through reskilling, in a move that is seen to aid the Skill India Mission?
(a) Asian Development Bank (ADB)
(b) World Trade Organization (WTO)
(c) Asian Infrastructure Investment Bank (AIIB)
(d) International Monetary Fund (IMF)
(e) World Bank (WB)

S10. Ans.(e)
Sol. The World Bank has cleared a USD 250-million loan for making Indian youth more employable through reskilling, in a move that is seen to aid the Skill India Mission. The multi-lateral lender is keen to support the Indian government in its efforts to better equip the young workforce with employable skills. Under the program, adults in 15-59 years of age, underemployed or unemployed, will get the skill training.

Q11. Which among the following bank has partnered with mobile payments switch TerraPay to enable real-time money transfer to bank accounts in India?
(a) Kotak Mahindra Bank
(b) Axis Bank
(c) Yes Bank
(d) ICICI Bank
(e) HDFC Bank

S11. Ans.(c)
Sol. 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.

Q12. Meghalaya government has signed two MoUs with the __________ as a part of an initiative towards migrating government transactions to digital mode. 
(a) Bank of Maharashtra
(b) Indian Bank
(c) Bank of Baroda
(d) Punjab National Bank
(e) State Bank of India

S12. Ans.(e)
Sol. Meghalaya government has signed two MoUs with the State Bank of India as a part of an initiative towards migrating government transactions to digital mode. With the implementation of the Goods and Services Tax(GST), these MoUs are expected to give dealers and other citizens the desired platform for conducting financial transactions with the state government on a digital platform.

Q13. An agreement for _________ Credit of USD 35 Million from World Bank for “Assam State Public Financial Institutional Reforms Project” was signed in New Delhi.
(a) International Bank for Reconstruction and Development (IBRD)
(b) International Centre for Settlement of Investment Disputes (ICSID)
(c) International Finance Corporation (IFC)
(d) Multilateral Investment Guarantee Agency (MIGA)
(e) International Development Association (IDA)

S13. Ans.(a)
Sol. An agreement for IBRD Credit of USD 35 Million from World Bank for “Assam State Public Financial Institutional Reforms Project” was signed in New Delhi. The agreement was signed by Shri Raj Kumar, Joint Secretary (MI), Department of Economic Affairs on behalf of the Government of India and Mr. John Blomquist, Acting Country Director, World Bank (India) on behalf of the World Bank.

Q14. The Insurance Regulatory and Development Authority of India (IRDAI) has taken over the administration of Sahara India Life Insurance, a first of its kind move in the insurance sector. Sahara India Life Insurance based in-
(a) Jaipur
(b) Lucknow
(c) Patna
(d) Shimla
(e) New Delhi

S14. Ans.(b)
Sol. The Insurance Regulatory and Development Authority of India (IRDAI) has taken over the administration of Sahara India Life Insurance, a first of its kind move in the insurance sector. The administrator will act as per the powers and duties and applicable provisions. R.K. Sharma, general manager, IRDA has been appointed as the administrator with “immediate effect” to manage Sahara India Life Insurance Company. Lucknow-based Sahara India Life Insurance was the first wholly Indian owned life insurance company in the private sector.

Q15. The proposed merger between Aadhar Housing Finance and DHFL Vysya Housing Finance has hit the final lap with it got the nod from housing finance regulator National Housing Bank (NHB). NHB was set up on-
(a) 09th July 1982
(b) 09th July 1992
(c) 09th July 1999
(d) 09th July 1988
(e) 09th July 1956

S15. Ans.(d)
Sol. The proposed merger between Aadhar Housing Finance and DHFL Vysya Housing Finance has hit the final lap with it got the nod from housing finance regulator National Housing Bank (NHB). Aadhar Housing Finance Chief Executive Officer Deo Shankar Tripathi stated that it had applied to National Company Law Tribunal (NCLT) for the next stage approval. NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987.