Banking Awareness

Banking Awareness 1.Who was the first Governor of the Reserve Bank of India? [A] Sir James Taylor [B] Sir Vincent Eyre [C] Sir Osborne Smith [D] Reginald Macdonald Answer Correct Answer: C [ Sir Osborne Smith ] Notes: Sir Osborne Smith was the first Governor of the Reserve Bank. A professional banker, he served for over 20 years with the Bank of New South Wales and 10 years with the Commonwealth Bank of Australia before coming to India in 1926 as a Managing Governor of the Imperial Bank of India. 2.UIDAI is a statutory authority formed under which of the following ? [A] Niti Aayog [B] Home Ministry [C] Ministry of Communication and Information Technology [D] Ministry of Statistics and Programme Implementation Answer Correct Answer: C [Ministry of Communication and Information Technology] Notes: The Unique Identification Authority of India is a central government agency of India under the ministry of communication and information technology India. It was set up by the Government of India on 28 January 2009 .The UIDAI is under the administrative control of the ministry of communication and information technology. 3.KYC guidelines have been issued under which section of Banking Regulation ACT 1949? [A] Section 35 A [B] Section 45 [C] SECTION 36 A [D] Section 123 B Answer Correct Answer: A [Section 35 A] Notes: KYC guidelines were issued under Section 35 A of the Banking Regulation Act, 1949.These were introduced in year 2002 by RBI and all banks were asked to make all accounts KYC compliant by 31 December 2005.Banks are also required to periodically update their customers’ KYC details. 4.Which of the following is not the type of credit reporting institutions? [A] Credit Bureau [B] Credit Agencies [C] Both a and b [D] None of the above Answer Correct Answer: C [Both a and b] Notes: There are two types of Credit Reporting Institutions. These are Credit Bureau and Credit Registry. Credit Registries tend to be public entities. They are usually managed by central banks or bank supervision agencies. In contrast, Credit Bureaus tend to be privately owned and privately operated companies. 5.According to FERA ,Foreign Exchange includes which of the following? [A] Traveler’s Cheque [B] Letters of Credit [C] Bill of Exchange expressed or drawn in Indian Currency [D] All of the above Answer Correct Answer: D [All of the above] Notes: According to FERA ,1973 Foreign Exchange means Foreign Currency, which includes: Any Draft Traveller’s Cheque Letters of Credit Bill of Exchange expressed in Indian Currency but payable in Foreign Currency 6.What is the full form of MDER? [A] Market Determined Exchange Rate [B] Market Derivative Exchange Rate [C] Market Determined Exchange Regime [D] Managed Determined Exchange Rate Answer Correct Answer: A [Market Determined Exchange Rate] Notes: After 1999 the official rate was discontinued and the exchange rate became market-determined exchange rate (MDER). Under MDER the forces of demand and supply of dollars in India determine the exchange rate. 7.Who are authorized to sell Foreign Exchange in India? [A] Authorized Dealers [B] RBI [C] FFMCs [D] Both a and c Answer Correct Answer: D [Both a and c] Notes: Foreign exchange can be purchased from any authorized person, such as an AD Category-I bank and AD Category II. Full-Fledged Money Changers (FFMCs) are also permitted to release Foreign exchanges. 8.Who is the current head of Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) ? [A] Praveen Kumar Sharma [B] Naveen Kumar Sharma [C] Laxmi Niwas Mittal [D] Nandan Nilekani Answer Correct Answer: A [Praveen Kumar Sharma] Notes: CERSAI is a central online security interest registry of India. It was primarily created to check frauds in lending against equitable mortgages, in which people would take multiple loans on the same asset from different banks. It was founded on march 11,2011 and is headed by Praveen Kumar Sharma. 9.Where does the headquarters of Brickwork Ratings India Private Limited situated? [A] Bangalore [B] Hyderabad [C] Mumbai [D] New Delhi Answer Correct Answer: A [Bangalore] Notes: Brickwork Ratings India Private Limited is headquartered in Bangalore. This credit rating agency is responsible to rate bank loans, municipal corporation, capital market instrument and SMEs. 10.Personal Loans are also called as by which of the following names? [A] Signature Loans [B] Unsecured Loans [C] Consumer Loans [D] All of the Above Answer Correct Answer: D [All of the Above] Notes: Unsecured loans (called signature loans) are advanced on the basis of the borrower’s credit-history and ability to repay the loan from personal income. Repayment is usually through fixed amount installments over a fixed term. Also called consumer loan. 11.Which type of Fund is required to be listed on Stock Exchange? [A] Debit Fund [B] Liquid Fund [C] Close Ended Funds [D] Sector Funds Answer Correct Answer: C [Close Ended Funds] Notes: A closed-end fund is organized as a publicly traded investment company by the Securities and Exchange Commission. Like a mutual fund, a closed-end fund is a pooled investment fund and raises a fixed amount of capital through an initial public offering (IPO). The fund is then structured, listed and traded like a stock on a stock exchange. 12.What type of loan is a Housing loan? [A] Unsecured Loan [B] Secured Loan [C] Corporate Loan [D] Consumer Loan Answer Correct Answer: B [Secured Loan] Notes: Housing loan is a secured loan that is backed by an asset or equipment. The asset is called collateral. This collateral is needed because the amount of loan in the case of secured loan is much higher. 13.What is an amortization schedule? [A] It is a table that gives details of the periodic principal and interest payments on a loan and the [B] It is convenient for borrowers who are in the beginning of their careers. [C] It is the schedule at which commercial banks charge their customers who are most creditworthy. [D] All of the Above Answer Correct Answer: A [It is a table that gives details of the periodic principal and interest payments on a loan and the] Notes: Amortization schedule is a table that gives details of the periodic principal and interest payments on a loan and the amount outstanding at any point of time. It also shows the gradual decrease of the loan balance until it reaches zero. 14.On how much amount of interest repayment ,an income tax rebate is available in India? [A] 1.5 lakh per annum [B] 2 lakh per annum [C] 3 lakh per annum [D] 2.5 lakh per annum Answer Correct Answer: A [1.5 lakh per annum] Notes: Resident Indians are eligible for certain tax benefits on both principal and interest components of a loan under the Income Tax Act, 1961. Under the current laws, one is entitled to an income tax rebate for interest repayment up to Rs. 1,50,000 /- per annum. 15.National Housing Bank is wholly owned by which of the following institutions? [A] RBI [B] SEBI [C] SBI [D] None of the Above Answer Correct Answer: A [RBI] Notes: NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital. The Head Office of NHB is at New Delhi. NHB was set up on July 9, 1988 under the National Housing Bank Act, 1987. 16.Which of the following institute is the regulator of the housing finance in India? [A] RBI [B] CIBIL [C] SEBI [D] NHB Answer Correct Answer: D [NHB] Notes: National Housing Bank is the Housing finance regulator in India. The main aim of NHB is to promote a sound, healthy, viable and cost effective housing finance system to cater to all segments of the population and to integrate the housing finance system with the overall financial system. 17.Which of the following civilization is considered to be the origin of Factoring? [A] Indus Valley Civilization [B] Mesopotamian culture [C] Incas Civilization [D] Aztecs Civilization Answer Correct Answer: B [Mesopotamian culture] Notes: Factoring originated with ancient Mesopotamian culture, with rules of factoring preserved in the Code of Hammurabi. Factoring is a method used by some firms to obtain cash. 18.Which of the following company started the first Factoring business service in India? [A] SBI Factors and Commercials Limited [B] IFCI Factors Limited [C] Siemens Factoring Private Limited [D] Canbank Factors Limited Answer Correct Answer: A [SBI Factors and Commercials Limited] Notes: SBI Factors and Commercials Limited was the first factoring company to start its operation in India in April, 1991. Since then a number of companies have started factoring business in India. 19.What is the normal time period range for factoring in India? [A] 70-80 days [B] 80-90 days [C] 90-120 days [D] 90-150 days Answer Correct Answer: D [90-150 days] Notes: Usually the period for factoring is 90 to 150 days. Some factoring companies allow even more than 150 days. Factoring is considered to be a costly source of finance compared to other sources of short-term borrowings. 20.When was the Factoring Regulation Act passed in India? [A] 2011 [B] 2000 [C] 1991 [D] 2001 Answer Correct Answer: A [2011] Notes: The parliament of India has passed the Factoring Regulation Bill in 2011.Any company can commence Factoring by obtaining registration from the RBI as a non-banking finance company. Such registration shall be governed by the existing law applicable to NBFCs as well as the new Factoring Regulation Act, 2011. 21.What do we call banking oriented towards mass welfare and financial inclusion of the poor? [A] Mass Banking [B] Narrow banking [C] Social banking [D] None of the above Answer Correct Answer: C [Social banking] Notes: Social banking is a concept where banking services are oriented towards mass welfare and financial inclusion of the poor and vulnerable segments of society.

Load more