Banking Awareness Test for IBPS, RBI, SBI, NABARD & other Bank Examinations - Set 4

1)   How much credit small finance banks has to give to priority sectors?

a. 50%
b. 75%
c. 40%
d. 80%
Answer  Explanation 

ANSWER: 75%

Explanation:
The small Finance Banks have been mandated to extend 75% of their credit to priority sector lending. Further, at least half of these loans should be below Rs. 25 Lakh.


2)   Who headed the committee to evaluate the license applications for Payment banks?

a. C Rangarajan
b. Usha Thorat
c. Nachiket Mor
d. B S Mehta
Answer  Explanation 

ANSWER: Nachiket Mor

Explanation:
In 2015, RBI formed an external advisory committee (EAC) headed by Nachiket Mor would evaluate the license applications. Total 41 applicants had applied for the license.


3)   Which is India’s first Payment bank?

a. PayTM Payments Bank
b. JIO Payments Bank
c. Airtel Payments Bank
d. Fino Payments Bank
Answer  Explanation 

ANSWER: Airtel Payments Bank

Explanation:
Bharti Airtel launched India’s first live payments bank named Airtel payment bank in March 2017. At present, there are 7 operational Payments Banks.


4)   Which of these kinds of deposits can be offered by Banking Correspondents?

a. Small Savings Accounts
b. Fixed Deposits
c. Recurring Deposits
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
As per the RBI guidelines the products provided by BCs are: Small Savings Accounts, Fixed Deposit and Recurring Deposit with low minimum deposits, Remittance to any BC customer, Micro Credit and General Insurance.


5)   In which year the Royal Commission on Indian Currency and Finance recommended the creation of a central bank for India?

a. 1926
b. 1927
c. 1928
d. 1929
Answer  Explanation 

ANSWER: 1926

Explanation:
In 1926, the Royal Commission on Indian Currency and Finance recommended the creation of a central bank for India.


6)   What happens when CRR is increased?

a. It decreases money supply
b. It increases demand for money
c. It decreases inflation
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
When CRR is increased , it decreases money supply, Increases interest rates on home loans, car loans etc. and in inter-bank market, Increases demand for money and decreases inflation.


7)   What is the population limit at a place under which the banks don’t require a license from RBI to open a branch?

a. 10000
b. 20000
c. 40000
d. 50000
Answer  Explanation 

ANSWER: 50000

Explanation:
At present, Indian banks no longer require a license from the Reserve Bank for opening a branch at a place with population of below 50,000.


8)   Which of the following comes under Statutory Pre-emotions?

a. Cash Reserve Ratio
b. Statutory Liquidity Ratio
c. Both a and b
d. None
Answer  Explanation 

ANSWER: Both a and b

Explanation:
Both Cash Reserve Ratio and Statutory Liquidity Ratio norms comes under Statutory Pre-emotions and is an important tool for bank regulation.


9)   When was the Government Securities Act passed?

a. 2002
b. 1999
c. 2005
d. 2006
Answer  Explanation 

ANSWER: 2006

Explanation:
The Government Securities Act, 2006 is a legislation of the Parliament of India, which aims to introduce various improvements in the government securities market and the management of government securities by the Reserve Bank of India


10)   Which of these banks are authorised to act as the agent of RBI?

a. Bank of Baroda
b. Punjab National Bank
c. State Bank of India
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
At present all the public sector banks and some private sector banks are authorised to act as RBI’s agents. These banks can conduct Government Business in India on behalf of RBI.