Banking Quiz : Some Fact Questions About RBI

Some Fact Questions About 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
6. Who was the first Indian RBI Governor ?
Answer: C.D.Deshmukh
* 7. Which Commission recommended the formation of Reserve Bank of India (RBI) ?
Answer: Hilton Young Commission (Royal commission)
* 8. Which is the central bank in India ?
Answer: RBI
* 9. Which bank is known as Banker's Bank ?
Answer: Reserve Bank of India (RBI)
* 10. Who introduced the Banking Ombudsman Scheme ?
Answer: Reserve Bank of India

Banking Materials : All About Money

All About Money ::

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Money is a thing that is usually accepted as payment for goods and services as well as for the repayment of debts.
Types of Money ::
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
Commodity Money -
Commodity money value is derived from the commodity out of which it is made. The commodity itself represents money and the money is the commodity. For instance, commodities that have been used as mediums of exchange include gold, silver, copper, salt, peppercorns, rice, large stones, etc.
Representative Money -
Representative Money includes token coins, or any other physical tokens like certificates, that can be reliably exchanged for a fixed amount/quantity of a commodity like gold or silver.
Fiat Money -
Fiat money, also known as fiat currency is the money whose value is not derived from any intrinsic value or any guarantee that it can be converted into valuable commodity (like gold). Instead, it derives value only based on government order (fiat).
Commercial Bank Money -
Commercial bank money or the demand deposits are claims against financial institutions which can be used for purchasing goods and services.
Narrow and Broad Money -
Money supply, like money demand, is a stock variable. The total stock of money in circulation among the public at a particular point of time is called money supply. RBI publishes figures for four alternative measures of money supply, viz. M1, M2, M3 and M4.
They are defined as follows -
M1 = CU + DD
M2 = M1 + Savings deposits with Post Office savings banks
M3 = M1 + Net time deposits of commercial banks
M4 = M3 + Total deposits with Post Office savings organisations
(excluding National Savings Certificates) where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ‗net‘ implies that only deposits of the public held by the banks are to be included in money supply.
The interbank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply.
M1 and M2 are known as narrow money. M3 and M4 are known as broad money.These gradations are in decreasing order of liquidity. M1 is most liquid and easiest for transactions whereas
M4 is least liquid of all. M3 is the most commonly used measure of money supply. It is also known as aggregate monetary resources.

Banking Quiz : Part-3

Banking Awareness
,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
1. As per SEBI guidelines, in a Book Building process the cap in the price band:
a) Should be at least 10% of the floor price
b) Should not be more than 20% of the floor price
c) No limits
d) a and c
e) None
2. The targets and sub-targets set under priority sector lending (PSL) for all scheduled commercial banks are calculated on ___
a) Adjusted Net Bank Credit [ANBC]
b) Credit Equivalent Amount of Off - Balance Sheet Exposure
c) Either Adjusted Net Bank Credit [ANBC] or Credit Equivalent Amount of Off - Balance Sheet Exposure
d) Adjusted Net Bank Credit [ANBC] or Credit Equivalent Amount of Off - Balance Sheet Exposure, whichever is higher
e) All of the Above
3. When banks give home loans, the nature of charge created is:
a) Hypothecation
b) Mortgage
c) Assignment
d) Pledge
e) None
4. Depositories hold securities in which of the following forms?
i. Demat, ii. Physical
a) Only (i)
b) Only (ii)
c) Either (i) or (ii)
d) Both (i) and (ii)
e) None
5. The nature of charge created while advancing against LIC policies is:
a) Assignment
b) Lien
c) Pledge
d) Set-off
e) a and b
6. Universal Banking means____
a) International Banking
b) Wholesale Banking
c) Offering multiple Financial Products
d) All of the above
e) a and b
7. In Core banking system:
a) Branches are connected to a central host
b) Branch automation modules and delivery channels are incorporated
c) Transactions are done centrally and online
d) All of the above
e) a and b
8. Cheque truncation can be done by:
a) Using MICR data
b) Using electronic image of the cheque and processing it at CTS centre
c) Using data processing
d) a & b
e) None
9. RBI acts as the Banker to the___ Governments:
i. Central ii. State
a) Only (i)
b) Only (ii)
c) Either (i) or (ii)
d) Both (i) and (ii)
e) None of the above
10. The committee which has recommended for establishment of data warehouse is:
a) Vasudevan Committee
b) Rangarajan Committee
c) Saraf Committee
d) Shere Committee
e) b and c
11. Which of the following does not match?
a) Regulator of insurance market –IRDA
b) Regulator of capital market– SEBI
c) Regulator of money market– RBI
d) Regulator of forex market– SEBI
e) All of the Above
12. This gives added value to products(is part of the product) in an attempt to augment their products
with values and associations that are recognised by and are meaningful to their customers:
a) Promotion
b) Brand
c) Product
d) Price
e) c and d
13. Who among the following was selected to succeed Arun Kumar Jain as the new Chairperson of the Central Board of Direct Taxes (CBDT)?
a) Sushil Chandra
b) Atulesh Jindal
c) Laxman Das
d) Subrat Kumar Ray
e) Sudha Sharma
14. The Central Board of RBI comprises, a Governor, 4 deputy governors and ____ directors.
a) 5
b) 7
c) 10
d) 15
e) 9
15. S.S. Tarapore passed away in Mumbai on February 2, 2016. He was well-known for his work in the field of:
a) Diplomacy
b) Banking
c) Civil Service
d) Law
e) Agriculture
16. Prime Minister Narendra Modi unveiled the Start-up India action plan to encourage new ventures on January 16, 2016. Income of start-ups will be exempted from tax for how many years?
a) 1
b) 2
c) 3
d) 4
e) 6
Answers :
1) b 2) d 3) b 4) a 5) a 6) c 7) d 8) b 9) d 10) a 11) d 12) b 13) b 14) d 15) b 16) c

BANKING MATERIALS : All About RuPay Card

All About RuPay Card

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
RuPay is the Indian domestic card payment network set up by National Payments Corporation of India (NPCI) at the behest of banks in India. The RuPay project had been conceived by Indian Banks Association (IBA) and had the approval of Reserve Bank of India (RBI).
National Payments Corporation of India (NPCI) has a plan to provide a full range of card payment services including the RuPay ATM, RuPay MicroATM, Debit, Prepaid and Credit Cards which will be accepted in India and abroad, across various channels like POS, Internet, IVR and mobile etc.
The initial focus of NPCI would be to approach those banks who have not been issuing any payment card at all more specifically – Regional Rural Banks (RRBs) and urban co-operative banks.
All Public Sector Undertakings (PSU) banks set to join RuPay system by the end of year 2012. RuPay-based debit cards can be used by the consumers on the Internet from September, 2012.
The government of India had launched India’s first domestic payment card network, RuPay, to compete with Visa Inc and Mastercard Inc.
Objectives of RuPay:
The Main Objective of the RuPay payment network project is to reduce the overall transaction cost and develop products appropriate for financial inclusion.
1. Reduce overall transaction cost for the banks in India by introducing competition to international card schemes.
2. Develop products appropriate for the country particularly for financial inclusion.
3. Provide card payment service option to many banks who are currently not eligible for card issuance under the eligibility criteria of international card schemes.
4. Build environment whereby payment information of the country remains within the country
5. Shift Personal Consumption Expenditure (PCE) from cash to electronic payments in a growing economy with a population of 1.2 billion.
Important Points to Remember:
1. RuPay is the Indian domestic card payment network.
2. The RuPay payment network set up by National Payments Corporation of India (NPCI) at the behest of banks in India.
3. The RuPay project had been conceived by Indian Banks Association and had the approval of Reserve Bank of India.
4. The main objective of RuPay project is to reduce overall transaction cost for the banks in India by introducing competition to international card schemes.
5. NPCI has plan to provide full range of credit service like RuPay ATM, RuPay MicroATM, Debit, Prepaid and Credit Cards which will be accepted across various channel POS, Internet, IVR, Mobile etc.
6. All state-owned banks are expected to join the RuPay system by the end of this year.
7. RuPay-based debit cards can be used by the consumers on the Internet from September, 2012.

Banking Quiz : Part-2

BANKING AWARENESS MCQ 

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
1. Alice Vaidyan is the Chairman and Managing Director of which of the following Insurance Companies?
a) New India Assurance
b) Life Insurance Corporation
c) Birla Sun Life Insurance Co. Ltd.
d) National Insurance Company
e) General Insurance Corporation of India

2. Prepayment charges are exempted for:
a) Housing Loans
b) Education Loans
c) Agri. Loans
d) Corporate Loans
e) a, b & c

3. Minimum and Maximum period of Certificate of Deposits:
a) 15 days & 1 year
b) 30 days & 1 year
c) 7 days & 1 year
d) 7 days & no limit
e) None

4. The Reserve Bank established which board to encourage transparency in lending and fair pricing and customer servicing?
a) Board of Financial Supervision (BFS)
b) Banking Ombudsman
c) Banking Codes and Standards Board of India
d) Deposit Insurance and Credit Guarantee Corporation
e) All of the Above

5. In strategic alliance, the alliance partners:
a) Merge with each other
b) One partner acquires the other
c) Remain separate entities
d) It is a type of convertion
e) None of the above

6. Maximum SLR to be maintained by banks is:
a) 50% of Net Demand and Time Liabilities (NDTL)
b) 40% Net Demand and Time Liabilities
c) 30% Net Demand and Time Liabilities
d) 60% Net Demand and Time Liabilities
e) None of the above

7. With regard to nomination to Illiterate account, which of the following statement is correct?
a) Can extend in favour of literate only
b) Nomination facility is not available
c) Consent from Nominee is required
d) Witness is a must
e) None

8. Acustomer is entitled to get a duplicate DD in place of the lost one, provided:
a) He gives due intimation to the issuing branch
b) Payment of DD not already made by the drawer branch
c) Execution of an indemnity Bond
d) All of the above
e) a and b

9. Bank stakeholders include:
a) Shareholders
b) Customers
c) Employees
d) a & b only
e) a, b, c

10. Agency which purchases NPA from banks is called:
a) Asset Management Company
b) Assets Reconstruction Company
c) Consolidation Company
d) Financial Reconstruction Company
e) None of the above

11. Working capital means:
a) Capital Requirements for the day-to-day transactions
b) Excess of current assets over current liabilities
c) Fixed assets - Current assets
d) None of above
e) b and c

12. E.P.S. in share market stands for:
a) Earnings Per Share
b) Electronic Payment System
c) Employee Pension Scroll
d) Equated Payment System
e) None of these

13. Housing Loans granted to individuals up to Rs.___ for construction of houses (excluding loans
granted by banks to their employees) are treated as priority sector advances:
a) 1 lakh
b) 10 lakhs
c) 25 lakhs
d) 20 lakhs
e) 15 lakhs

14. When the contents of the Negotiable Instrument are modified by the drawer, it is treated as:
a) Forgery
b) Fraud
c) Material alteration
d) Suppression of facts
e) None

15. Operational risk is the risk of loss arising from various types of:
a) Human error
b) Failed systems and procedures in the bank
c) Breakdown in internal controls
d) All of the above
e) a and b

16. Exercise of nomination by the depositor is:
a) Optional to the depositor
b) Mandatory in case of single named accounts
c) Mandatory in case of joint accounts
d) Mandatory for locker accounts
e) None

17. Which of the following statements is not correct with regard to Tax Saver Scheme of Banks?
a) Tax exemption is available for the deposit amount under section 80C of IT Act
b) Period of deposit is allowed up to 5 Years
c) TDS is applicable, if interest payment is above Rs.10,000 in a financial year
d) Maximum amount of deposit allowed is Rs. 5 Lakhs
e) c & d

18. What is the total Priority Sector Lending target for Foreign banks with 20 branches and above to
be increased to ____ by 2018?
a) 32 %
b) 34 %
c) 36 %
d) 40 %
e) None of the above

19. No security is required for obtaining Educational Loan up to an amount of:
a) Rs.4.0 lakhs
b) Rs.3.5 lakhs
c) Rs.5.5 lakhs
d) Rs.6.5 lakhs
e) Rs.7.5 lakhs

20. EEFC a/c means:
a) Exchange Earnings Foreign Currency a/c
b) Exchange Earnest Foreign Currency a/c
c) Exchange Earners Foreign Currency a/c
d) Exchange Equated Foreign Currency a/c
e) None of these

ANSWERS:
1) e 2) e 3) c 4) c 5) c 6) b 7) d 8) c 9) e 10) b
11) a 12) a 13) c 14) c 15) d 16) a 17) d 18) d 19) a 20) c

Suggestions Here :

E-mail - snazzy.meenakshi@gmail.com
http://studywithmeenakshi.blogspot.in

Banking Materials : Banking Abbreviations

Banking Abbreviations 

,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,
1. PIN - Personal Identification Number
2. CCEA - Cabinet Committee on Economic Affairs
3. GIRO - Government Internal Revenue Order
4. PPP - Public Private Partnership & Purchasing Power parity
5. HDFC - Housing Development Finance Corporation
6. SWOT - Strength, Weeknesses, Opportunities And Threats
7. SWIFT - Society for Worldwide Financial Telecommunications,
8. FERA - Foreign Exchange Regulations Act
9. FEMA - Foreign Exchange Management Act
10. CRISIL - Credit Rating Information Services of India Limited
11. CIBIL: Credit Information Bureau (India) Ltd
12. KYC: Know Your Customer
13. RTGS: Real Time gross settlement
14. NEFT: National electronic Money Transfer
15. EFT: Electronic fund transfer
16. CBS: Core banking Solutions
17. PSBs: Public Sector banks
18. FIIs: Foreign Institutional investments
19. FDI: Foreign Direct Investment
20. IPO: Initial Public Offering
21. IBA: Indian bank Association
22. BPLR: Benchmark prime Lending rate
23. ICICI: Industrial Credit and Investment Corporation of India
24. MICR: Magnetic Ink Character reader
25. BIRD: Bankers Institute of Rural development
26. ICRA: Indian Credit rating Agency
27. CARE: Credit Analysis & Research Ltd
28. WMAs: Ways and means Advances
29. ALM: Asset Liability management
30. CASA: Current and saving account
31. NDTL: Net Demand and Time Liabilities
32. ALM- Asset Liability Management
33. ASBA: Application Supported by Blocked Amount
34. CBS: Core Banking Solution
35. FSLRC – Financial Sector Legislative Reforms Commission
36. CRAR: Capital to Risk-weighted Assets Ratio
37. LCR: Liquidity Coverage Ratio
38. TARC - Tax Administration Reform Commission
39. TIEA – Tax Information exchange Agreement
40. . GAAR - General anti avoidance rule
41. LIBOR: London Interbank Offered rate
42. MIBOR: Mumbai Interbank Offered rate
43. MIBID: Mumbai Interbank Bid rate
44. SARFAESI: Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest
45. CAMELS: (C)apital adequacy
(A)ssets
(M)anagement Capability
(E)arnings
(L)iquidity (also called asset liability management)
(S)ensitivity
46. CAR: Capital Adequecy Ratio
TIN - Tax Information Network (TIN)
47. IMPS - Interbank Mobile Payment Service (IMPS).
48. CDR- Corporate Debt Restructuring
49. CAD- Capital Account Deficit
50. REITs: Real Estate Investment Trusts
51. InvITs: Infrastructure Investment Trusts
52. DTAA – Double Taxation Avoidance Agreement
53. ECBs - External Commercial Borrowings
54. EFSF – European Financial Stability Facility
55. FINO- Financial Inclusion Network Operation
56. FIPB – Foreign Investment Promotion board
57. SENSEX: Sensitive index of Stock Exchange
58. GNP: Gross national Product
59. NASDAQ: National Association of Securities Dealers Automated Quotations
60. NAV: Net Asset value
61. ATM Full Form - Asynchronous Transfer Mode
62. ATM Full Form - Automated teller machine
63. BCBS Full Form - Basel committee for Banking Supervision
64. GST - Goods and Service Tax

Suggestions Here :

E-mail - snazzy.meenakshi@gmail.com
http://studywithmeenakshi.blogspot.in