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Indian bank’s Query and Reply Arising from global People

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Indian bank’s Query and Reply Arising from global People

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RBI GK Questions-General Knowledge Questions and Answers updated on Mar 2018
Important General knowledge questions about Reserve Bank of India (RBI)

  1. When did Reserve Bank of India (RBI) formed? Answer: 1935 april 1
  2. When did Reserve Bank of India (RBI) Nationalised ? Answer: 1949
  3. Where was the first Headquarters of Reserve Bank of India (RBI) ? Answer: Kolkata
  4. When did the Headquarters of Reserve Bank of India (RBI) moved to Mumbai ? Answer: 1937
  5. Who was the First Reserve Bank of India (RBI) Governor ? Answer: Sir Osborne Smith

RBI Governors List

Sir Osborne Smith (01-04-1935 to 30-06-1937)
Sir James Taylor (01-07-1937 to 17-02-1943)
Sir C D Deshmukh (11-08-1943 to 30-06-1949)
Sir Benegal Rama Rau (01-07-1949 to 14-01-1957)
K G Ambegaonkar (14-01-1957 to 28-02-1957)
H V R Iengar (01-03-1957 to 28-02-1962)
P C Bhattacharya (01-03-1962 to 30-06-1967)
L K Jha (01-07-1967 to 03-05-1970)
B N Adarkar (04-05-1970 to 15-06-1970)
S Jagannathan (16-06-1970 to 19-05-1975)
N C Sen Gupta (19-05-1975 to 19-08-1975)
K R Puri (20-08-1975 to 02-05-1977)
M Narasimham (02-05-1977 to 30-11-1977)
Dr. I G Patel (01-12-1977 to 15-09-1982)
Dr. Manmohan Singh (16-09-1982 to 14-01-1985)
A Ghosh (15-01-1985 to 04-02-1985)
R N Malhotra (04-02-1985 to 22-12-1990)
S Venkitaramanan(22-12-1990 to 21-12-1992)
Dr. C Rangarajan (22-12-1992 to 21-11-1997)
Dr. Bimal Jalan (22-11-1997 to 06-09-2003)
Dr. Y V Reddy (06-09-2003 to 05-09-2008)
Dr. D. Subbarao (05-09-2008 to date)

  1. Who was the first Indian RBI Governor ? Answer: C.D.Deshmukh

 

  1. Which Commission recommended the formation of Reserve Bank of India (RBI) ?

Answer: Hilton Young Commission (Royal commission)

  1. Which is the central bank in India ? Answer: RBI

 

  1. Which bank is known as Banker’s Bank ? Answer: Reserve Bank of India (RBI)

 

  1. Who is the present Governor of RBI ? Answer: Dr. Raghuram Rajan

 

  1. Who introduced the Banking Ombudsman Scheme ? Answer: Reserve Bank of India

 

  1. What’s the purpose of demat account ? Answer: Demat account is a safe and convenient means of holding securities just like a bank account is for funds. Today, practically 99.9% settlement (of shares) takes place on demat mode only. Thus, it is advisable to have a Beneficiary Owner (BO) account to trade at the exchanges.

 

  1. How does the Reserve Bank estimate the demand for banknotes?

The Reserve Bank estimates the demand for banknotes on the basis of the growth rate of the economy, the replacement demand and reserve stock requirements by using statistical models/techniques.

  1. What is the role of the Reserve Bank of India in currency management?

The Reserve Bank derives its role in currency management from the Reserve Bank of India Act, 1934.The Reserve Bank manages currency in India. The Government, on the advice of the Reserve Bank, decides on various denominations of banknotes to be issued. The Reserve Bank also co-ordinates with the Government in the designing of banknotes, including the security features. The Reserve Bank estimates the quantity of banknotes that are likely to be needed denomination-wise and accordingly, places indent with the various printing presses. Banknotes received from banks and currency chests are examined and those fit for circulation are reissued and the others (soiled and mutilated) are destroyed so as to maintain the quality of banknotes in circulation.

  1. What is CRR?

Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with the RBI. If the central bank decides to increase the CRR, the available amount with the banks comes down. The RBI uses the CRR to drain out excessive money from the system. Scheduled banks are required to maintain with the RBI an average cash balance, the amount of which shall not be less than 4% of the total of the Net Demand and Time Liabilities (NDTL), on a fortnightly basis.

  1. What is Reverse Repo rate?

Reverse Repo rate is the rate at which the RBI borrows money from commercial banks. Banks are always happy to lend money to the RBI since their money are in safe hands with a good interest. An increase in reverse repo rate can prompt banks to park more funds with the RBI to earn higher returns on idle cash. It is also a tool which can be used by the RBI to drain excess money out of the banking system.

  1. What is a Repo Rate?

The rate at which the RBI lends money to commercial banks is called repo rate. It is an instrument of monetary policy. Whenever banks have any shortage of funds they can borrow from the RBI. A reduction in the repo rate helps banks get money at a cheaper rate and vice versa. The repo rate in India is similar to the discount rate in the US.

  1. What is SLR Rate?

Statutory liquidity ratio refers to the amount that the commercial banks require to maintain in the form of gold or govt. approved securities before providing credit to the customers. Here by approved securities we mean, bond and shares of different companies. Statutory Liquidity Ratio is determined and maintained by the Reserve Bank of India in order to control the expansion of bank credit. It is determined as percentage of total demand and time liabilities.

  1. What is a white-label ATM?

Most automated teller machines (ATMs), or machines that dispense cash, are owned by banks. But ones that are owned and operated by non-banking companies are called while-label ATMs (WLAs). They function just the same way as any other bank-run ATM.
Tata Communications Payment Solutions Ltd. (TCPSL), a subsidiary of Tata Communications on June 2013, rolled out the first-ever white label Automated Teller Machines (ATMs) network under the brand Indicash.
20.How inflation effect on money and price?
In economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.[1] When the general price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time.
Inflation’s effects on an economy are various and can be simultaneously positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation is rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future. Positive effects include ensuring that central banks can adjust real interest rates (to mitigate recessions),[5] and encouraging investment in non-monetary capital projects.

 Banking G.K.
Topicwise Questions – Banking and RBI related Questions

  1. Which of the following public sector banks has the largest number of branches in foreign countries?

Bank of India
Bank of Baroda
Punjab National Bank
Corporation Bank

  1. The only merger of two public sector banks took place between –

Bank of India and New Bank of India
Punjab National Bank and New Bank of India
Allahabad Bank and United Bank of India
Punjab National Bank and Bank of Rajasthan

  1. Which of the following banks was inaugurated by Mahatma Gandhi in 1919?

Bank of Maharashtra
Bank of Baroda
State Bank of Saurashtra
Union Bank of India

  1. After State Bank of India, which of the following banks has the largest number of offices?

Punjab National Bank
Bank of India
Andhra Bank
Canara Bank

  1. Which of the following rates are reviewed by the RBI at the time of periodical review of the policy?

Bank rate
Repo rate
Savings bank rate
Only 1
Only 2
Both 1 and 2
All the three

  1. What are teaser loan rates charged by banks?

Rate of interest which is competitively changed in relation to other banks
Floating rate of interest charged by banks
Low rate of interest in the initial period which goes up subsequently
Higher rate of interest in the initial period which goes down subsequently

  1. Which of the following terms is used in banking field?

Interest rate swap
Input devices
Sedimentary
Zero Hour

  1. Expand the term EMI as used in banking/finance sector?

Easy Monthly Instalment
Equal Monthly Investment
Equated Monthly Instalment
Equated Mortgage Investment

  1. Bank rate is decided by which of the following?

Reserve Bank of India
Government Of India
State Bank of India
Securities and Exchange Board of India

  1. With which of following types of loans are teaser rates related?

Home loans
Personal loans
Auto loans
Reverse mortgage loans

  1. What does M in M-Banking Facility being offered by banks to their customers, stand for?

Money
Marginal
Message
Mobile Phone

  1. Which of the following is/are true about the Sub-Prime Crisis?

It is a mortgage crisis referring to credit default by the borrowers.
Sub-Prime borrowers were those borrowers who were rated low and were high risk borrowers.
This crisis originated because of negligence in credit rating of the borrowers.
Only 1
Only 2
Only 3
All 1, 2, and 3

  1. Match the following mergers of banks

List I       List II

  1. Centurion Bank of Punjab 1. ICICI Bank
  2. Bank of Rajasthan 2. Punjab National Bank
  3. Global Trust Bank 3. HDFC Bank
  4. Nedungadi Bank 4. Oriental Bank of Commerce

A – 4; B – 1; C – 2; D – 3
A – 3; B – 4; C – 1; D – 2
A – 2; B – 1; C – 4; D – 3
A – 3; B – 1; C – 4; D – 2

  1. At which of the following cities is the Head Office of Reserve Bank of India located?

Mumbai
New Delhi
Kolkata
Dehradun

  1. The reserves held by Commercial Banks over and above the statutory minimum, with the RBI are called

Cash reserves
Deposit reserves
Excess reserves
Momentary reserves
Source: http://gk-questions.leadthecompetition.in/questions-on-banking.html
ANSWER OF THE ABOVE QUESTIONS:
1(b)Bank of Baroda
2(b) Punjab National Bank and New Bank of India
3(d) Union Bank of India
4(a) Punjab National Bank
5(d) Bank rate
Repo rate
Savings bank rate
6(c) Low rate of interest in the initial period which goes up subsequently
7(a) Interest rate swap
8(C) Equated Monthly Instalment
9(a) Reserve Bank of India
10(a) Home loans
11(d) Mobile Phone
12(d) All 1, 2, and 3
13(d) A – 3; B – 1; C – 4; D – 2
14(a) Mumbai
15(c) Excess reserves
Source: http://gk-questions.leadthecompetition.in/questions-on-banking.html

1- What are ‘Open Market Operations”?
A.Activities of SEBI-registered brokers B.Selling of currency by the RBI C.Selling of gilt-edged securities by the government D.Sale of share by FIIs E.None of these

Answer  –  C (Selling of gilt-edged securities by the government)
2- Which bank was earlier called the ‘Imperial Bank of India?
A.RBI B.SBI C.UBI D.PNB E.BOI
View Answer (-)
Answer & Explanation
Answer  –  B (SBI)
3- India’s largest commercial bank is?
A.Central Bank of India B.State Bank of India C.Indian overseas Bank D.Bank of India E.PNB

Answer  –  B (State Bank of India)
4- Bank deposit that can be withdrawn without any notice are called?
A.Account payee deposit B.Fixed deposit C.Variable deposit D.Demand draft E.None of these

Answer  –  D (Demand draft)
5- Which bank in India perform duties of Central Bank?
A.Central bank of India B.State bank of India C.Both a and b D.Reserve bank of India E.None of these

Answer  –  D (Reserve bank of India)
6- Reserve bank of India was nationalized in?
A.1947 B.1948 C.1949 D.1951 E.1955

Answer  –  C (1949)
7- Green Banking means?
A.Development of forestry by banks B.Financing of environment friendly projects by banks C.Financing of irrigation projects by banks D.All of these E.None of these

Answer  –  B (Financing of environment friendly projects by banks)
8- An instrument of qualitative credit control in India is?
A.Open market operations B.Credit rationing C.Change in reserve ratio D.Bank rate policy E.None of these

Answer  –  B (Credit rationing)
9- The Monetary Policy of India is announced by the?
A.Prime Minister B.Governor of the RBI C.Union Finance Minister D.Union Commerce Minister E.None of these

Answer  –  B (Governor of the RBI)
10- Which of the following rates is NOT decided by the Reserve Bank of India?
A.Bank rate B.Repo rate C.Reverse Repo rate D.Income Tax rate E.None of these

Answer  –  D (Income Tax rate)
Source: http://www.gyanjosh.com/test/indian-economy-gk-questions/questions-on-banking-sector-and-awareness/0

General Knowledge : Questions Answers : Banking Awareness
1.What is/are the main functions of RBI?
(i). Notes Issuance.
(ii). Government’s Bankar.
(iii). Bankar’s Bank.
(iv). Bank’s Supervision.

  1. Only (i)
  2. Both (ii) and (iii)
  3. Both (iii) and (iv)
  4. All of these.

Answer with Explanation
Answer: Option D
Explanation:
Reserve Bank of India (RBI) is the supreme banking authority of India. All the public & private sector banks or any financial institution in India are controlled by RBI.
RBI is responsible for issuing, exachanging or destroying of currency.
RBI acts as a merchant banker for the Central and State Government. RBI maintains all the banking accounts of the scheduled banks.
RBI operate all the financial and banking operations in India.
2. In India, Micro finance development and Equity fund is maintained by-

  1. Small industries development Bank of India(SIDBI).
  2. RBI(Reserve bank of India).

 

  1. Nabard(National bank for Agriculture and rural development).
  2. CII(Confederation of industries in India).

Answer with Explanation
Answer: Option A
Explanation:
Small Industries Development Bank of India (SIDBI) set up on April 2, 1990. It is headquartered at Lucknow. SIDBI is playing the role for the growth and  development of Micro, Small and Medium-scale Enterprises (MSME).

3.Which are the following rates are decided by the RBI is called “Policy Rate”?

  1. Cash reserve ratio.
  2. Lending rate.
  3. Bank rate.
  4. Deposite rate.

Answer with Explanation
Answer: Option A
Explanation:
Cash reserve ratio (CRR) is the funds that all the scheduled bank have to maintain with RBI, the supreme banking authority of India. By increasing the CRR RBI drain out excessive funds from the scheduled banks.

Example: Suppose the CRR is 5% . A person/customer open a Savings bank account with Rs. 10,000 in Punjab National Bank. So now Punjab National Bank has to park Rs. 500 to Reserve Bank of India (RBI) as per the CRR rate.
5% of 10,000 = 500 (CRR= 5%).
Show Answer    Discuss

  1. As per newspaper report,one of the major public sector banks sold out its RS> 500 Cr. loan to IIFCL. This type of buying and selling of loans in banking sector is popularly known as,

 

  1. Teaser rate financing.
  2. Take out financing.
  3. Infrastructure financing.
  4. Development financing.

Answer with Explanation
Answer: Option B
Explanation:
Take out financing is a kind of long term finacing by the banks. Like 15-20 years. It is also called as ‘Take out Loan’. Usually Take out financing is  used for real property and commercial purposes.

  1. ‘kfw’ group released another instalment of its financial aid to India.’kfw’ is an organisation/bank base in;

 

  1. France.
  2. Japan.
  3. Germany.
  4. China.

Answer with Explanation
Answer: Option C
Explanation:
‘Kfw’ is financial and banking group of Germany. It is Government owned group/bank founded on 1948.

  1. Retail Banking refers to the dealing of commercial banks with individual customers on,

 

  1. i) Liabilities.
  2. ii) Assets.
  3. only i.
  4. only ii.
  5. both i and ii.
  6. None of these.

Answer with Explanation
Answer: Option C
Explanation:
Retail banking is a banking system where banks (Basically larger commercial banks) directly deals with the customers.
In retail banking services offered like; Savings Account, Checking/Transactional Account, Debit Cards, Credit Cards, Personal Loans, Mortgages, Certificate of Deposits and etc.

  1. Wholesale banking is also called,

i)Corporate banking.
ii)Commercial banking

  1. only i.
  2. only ii.
  3. both i and ii.
  4. None of these.

Answer: Option C
Explanation:
Wholesale banking is the services offered by a merchant bank to other banks and financial instituion(Large corporate clients, Real Estate Developers and etc.). Where Retail banking is the banking with samll individual customers.

  1. With respect to wholesale banking,’term landing’ is a,

i)Fund based services.
ii)Non-fund based services.

  1. only i.
  2. only ii.
  3. both i and ii.
  4. None of these.

Answer: Option B

  1. In banking the term DTL refers to;

 

  1. Detail time limit.
  2. Demand and time limit.
  3. Demand and time liabilities.
  4. None of these.

Answer: Option C

  1. Cash reserve ratio(CRR) refers to,

 

  1. Cash that all banks are require to maintain with RBI.
  2. Certain percentage of DTL of all banks.
  3. Both a & b.
  4. None of these.

Answer: Option C
Explanation:
Cash reserve ratio (CRR) is the funds that all the scheduled bank have to maintain with RBI.
Example: Suppose the CRR is 4% . Someone opens a bank account with Rs. 5000 in SBI. So now SBI has to park Rs. 200 to RBI as per the CRR rate.
4% of 5000 = 200
Source: http://www.basictell.com/general-knowledge_questions-answers_banking-awareness-1

  1. This bank signs MoU with Government e-Marketplace recently.

 

  1. ICICI
  2. Axis
  3. HDFC
  4. Canara

Answer: Option C
Explanation:
HDFC Bank signed a memorandum of understanding (MoU) with the Government e-Marketplace (GeM) under which, it will facilitate a host of transaction/banking related services for the portal. GeM is an online marketplace for central and state government ministries/ departments, central or state public sector undertakings, autonomous institutions and local bodies for procurement of common use goods/services. GeM brings in transparency and efficiency in the entire public procurement process. About 20 states have already signed a MoU with GeM. Role of HDFC Bank would be to ensure timely payment to the sellers.

  1. Jio and this online music service has signed an agreement to create a digital media platform.

 

  1. Saavn
  2. Saregama
  3. Wynk
  4. SoundCloud

Answer: Option A
Explanation:
Reliance Jio Director Akash Ambani, has signed an agreement for merging the digital music service Saavn with JioMusic to create a digital media platform with global reach. The total value of the deal will be over $1 billion. As part of the deal, additionally, Reliance will be acquiring a partial stake from the existing shareholders of Saavn for $104 million

  1. This bank launched a Metro Plus Card for the customers with Delhi Metro.

 

  1. Punjab National Bank
  2. SBI
  3. Yes Bank
  4. IndusInd Bank

Answer: Option D
Explanation:
Delhi Metro, in association with IndusInd Bank, launched a dual purpose Metro Plus’ debit card that will enable customers of IndusInd bank to use it for metro train rides as well as for all other regular debit card transactions. The Metro Plus Card, developed by IndusInd bank, has an embedded Delhi Metro Transit chip along with the secured Debit Card Chip. The card can be topped-up via IndusInd Bank ATMs, IndusMobile app, net banking and SMS. The card users can also get their smart cards auto topped up at Delhi Metro’s (Automatic Fare Collection) AFC Gates.

  1. Recently, this bank gets approval for amalgamation of its fully-owned subsidiary All Bank Finance Ltd. (ABFL) with itself.

 

  1. Allahabad Bank
  2. Punjab National Bank
  3. Bank of Baroda
  4. Union Bank of India

Answer: Option A
Explanation:
Allahabad Bank stated that it has received approval from Union Ministry of Corporate Affairs for amalgamation of its fully-owned subsidiary All Bank Finance Ltd. (ABFL) with itself. Bank’s board had approved the proposed amalgamation in December 2016. All Bank Finance offers fee-based services like debenture trusteeship, distribution of mutual fund schemes, investment advisory and portfolio management and security valuation. For financial year 2016-17, ABFL’s total income stood at Rs 13.30 crore, while the net profit was Rs 6.76 crore.

  1. With which bank Swiggy patners and Launches UPI-Based Digital Payment Service?

 

  1. HDFC Bank
  2. ICICI Bank
  3. SBI Bank
  4. Axis Bank

Answer: Option B
Explanation:
Online food ordering and delivery platform, Swiggy and India’s largest private bank, ICICI Bank have partnered to roll out two innovative digital solutions to facilitate a convenient and hassle-free way for delivery partners to transfer funds to Swiggy. The first one is a Unified Payment Interface (UPI) based solution which enables instant fund transfers on-the-go while the other is a facility for depositing cash at automated Cash Deposit Machines (CDM) available at ICICI Bank branches and ATMs across India. Swiggy has integrated the UPI solution with ICICI Bank, which offers a secure and scalable mode to enable collection of funds from its delivery partners. Under this arrangement, Swiggy’s delivery partners will have their own UPI handle, to which they can link their savings bank account and start transacting by using any UPI-enabled app like ICICI Bank ‘Pockets’, ‘Google Tez’, ‘BHIM’,etc.

  1. Which bank introduced Erica, a chatbot to help customers check balances, remind about bills and answer bank-related questions?

 

  1. PayPal
  2. Citibank
  3. Capital One
  4. Bank of America

Answer: Option D

Explanation:
Bank of America has started rolling out Erica, its chatbot that can help customers check balances, remind about bills and answer bank-related questions. Erica has been rolled out to customers in Rhode Island. Bank of America had first introduced Erica at fintech and payments conference Money 2020 in October 2016. Testing of Erica was conducted during 2017. Customers of Bank of America will be able to interact with Erica via voice or text and it will help them with routine day to day banking transactions.

  1. Recently, Which banks signs MoU With IMGC to offer mortgage guarantee scheme for the customers?

 

  1. KVB
  2. SBI
  3. Axis
  4. City Union Bank

Answer: Option B
Explanation:
India’s largest lender State Bank of India SBI and India Mortgage Guarantee Corporation (IMGC) signed a pact to offer mortgage guarantee scheme for prospective non-salaried and self-employed home loan customers. The offering will help increase home loan eligibility up to 15% within the regulatory norms. The MoU between SBI and IMGC is a strategic initiative which will enable to improve housing loan volumes in the non-salaried segment.

  1. Karnataka Bank opened its first all-woman branch at __________.

 

  1. Madurai
  2. Chennai
  3. Bengaluru
  4. Salem

Answer: Option C
Explanation:
Karnataka Bank opened its first all-woman branch at Bull Temple Road in Bengaluru. This is the 36th branch opened by the Bank during the current financial year 2017-18 and the 800th branch of the bank. Karnataka Bank is a major Private Sector Banking institution headquarted at Mangaluru in Karnataka.

  1. Which bank has launched a robotics-based ‘Digital export Import’ payments solution?

 

  1. Kvb Bank
  2. Yes Bank
  3. Axis Bank
  4. Lakshmi Vilas Bank

Answer: Option B
Explanation:
Yes Bank has launched a robotics-based ‘Digital export Import’ payments solution as a part of its Yes Transact Smart Trade product suite. It aims to bring over 1 lakh trade transactions going entirely digital, across major geographies including China, US. The product uses robotics process automation & helps in eliminating the requirement of documents submission for import & export payments.

  • Which bank projects India’s FY19 GDP growth at 7.3 pc?

A. IMF

B. World Bank

C. IBRD

D. IFC

Answer: Option B

Explanation:
As per World Bank’s biannual publication, India Development Update: India’s Growth Story, India’s Gross Domestic Product (GDP) growth for next financial year i.e. FY 2018-19 is projected at 7.3 per cent. World Bank has outlined that Indian economy is likely to recover from the impact of demonetisation in November 2016 and roll out of Goods and Services Tax (GST) July 2017 and will accelerate further to 7.5 per cent in 2019-20.

Source: https://www.indiabix.com/current-affairs/banking/004002

INDIAN BANK’S QUERY AND REPLY ARISING FROM GLOBAL PEOPLE