Banking Awareness - Financial Reforms and Banking Innovation
Exam Duration: 45 Mins Total Questions : 30
A 'Debit Card' is issued by a bank to
- (a)
all customers of a bank
- (b)
all customers having Savings bank account with a bank
- (c)
all customers having loan account with a bank
- (d)
a bank customers who is income tax assesee
- (e)
all corporate Salary account holder
A lot of Banks in India these days are offering M-abnking Facility to their customers. What is the full form 'M' in 'M'-Banking?
- (a)
Money
- (b)
Marginal
- (c)
Message
- (d)
Mutual Fund
- (e)
Mobile Phone
Which of the following is the limitation of the ATMs owing to which people are required to visit branches of the bank?
I. It does not accept deposits
II. It has a limited cash disbursement capacity
III. Lack of human interface
Select the correct answer using the codes given below
- (a)
Only I
- (b)
Only II
- (c)
Only III
- (d)
III, II and I
- (e)
None of these
As we all know, more and more countries/organisations are now going for non-cash transactions and accordingly banks have launched many new products in the market for the same. Which of the following products is a non-cash transaction product?
- (a)
Only ATM Card
- (b)
Only Credit Card
- (c)
Only Prepaid Card
- (d)
Only Debit Card
- (e)
All are non-cash transaction products
A-card stores and provide identification, authentication, data storage adn application processing applications
- (a)
Debit Card
- (b)
Smart Card
- (c)
Credit Card
- (d)
ATM Card
- (e)
None of the above
Many times we read a term CBS used in banking operations. What is the full form of the letter C in the term 'CBS'
- (a)
Complete
- (b)
Credit
- (c)
Continuous
- (d)
Core
- (e)
None of these
Which of the following sectors makes maximum contribution to the national income of India?
- (a)
Services
- (b)
Agriculture
- (c)
Industry
- (d)
Both 2 and 3
- (e)
None of the above
In respect of which one of the following areas, YH Malegam Committee has submitted its recommendations?
- (a)
Interest on Micro finance loans
- (b)
Teaser loans
- (c)
Rural development
- (d)
Advances to agriculture
- (e)
None of these
Structure of Basel II based on how many pillars?
- (a)
Two
- (b)
Ten
- (c)
Four
- (d)
Five
- (e)
Three
Which of the following is the purpose of introducing 'know Your Customers norms by the banks?
- (a)
To bring more and more people under the banking net
- (b)
Identifying people who do not pay income tax
- (c)
To ensure that the money deposited in banks has come from genuine sources
- (d)
To ensure whether the money deposited in the bank is an India or a foreign national
- (e)
None of the above
In which of the following fund transfer mechanisms, can funds be moved from one bank to another and where transaction is settled instantly without being bunched with any other transaction?
- (a)
RTGS
- (b)
NEFT
- (c)
TT
- (d)
EFT
- (e)
MT
Which of the following is not an objective of financial sector reform in India?
- (a)
Creating an efficient, productive and profitable financial sector industry
- (b)
Preparing the financial system for increasing international competition
- (c)
Opening the external sector in a calibrated fashion
- (d)
Reducing the fiscal deficit
- (e)
Promote the maintenance of financial stability even in the domestic and external environment
Which of the following banks have entered capital market in the wake of Narasimham Committee recommendations?
- (a)
State Bank of India
- (b)
Oriental Bank of Commerce
- (c)
Bank of India
- (d)
All of the above
- (e)
None of the above
The Narsimham Committee-II was set-up to suggest some recommendations for improvement in the
- (a)
efficiency and productivity of the financial institution
- (b)
banking reform process
- (c)
export of IT sector
- (d)
fiscal reform process
- (e)
None of the above
Which of the following are the recommendation of the Committee on Banking Sector Reforms (Narsimham Committee-II)
- (a)
A genral provisions of 1% on standard assets should be introducing
- (b)
Banks should bring out revised operational manuals and update them regularly
- (c)
There is a need for disclosure in a phased manner of the maturity pattern of assets and liabilities, foreign currency assets and liabilities, movements in provision account and NPAs
- (d)
All of the above
- (e)
None of the above
The recommendations of the Committee on Banking Sector Reforms (Narasimham Committee-II) include
- (a)
the 'Basle Core Principles of Effective Bank supervision' should be regarding as the minimum to be attained
- (b)
the bank and primary dealers alone should be allowed in the inter-bank call and notice money markets
- (c)
opening the Treasury Bill market to foreign institutional investors for broadening its base
- (d)
All of the above
- (e)
None of the above
Which of the following certainly is an effort in the direction of Financial Inclusion?
- (a)
Internet Banking
- (b)
Anywhere Banking
- (c)
No-Frill Accounts
- (d)
Foreign Currency Accounts
- (e)
All of the above
Machine, within or outside the bank premises that enables customers to conduct cash withdrawals and other specific banking transactions without the help of bank staff, is called
- (a)
Automated Teller Machine (ATM)
- (b)
PC
- (c)
internet
- (d)
intranet
- (e)
servers
Which of the following are the other recommendation made by the working group?
- (a)
Grey scale technology will be deploy for imaging
- (b)
Images will be preserved for eight years
- (c)
A centralised agency per clearing location will act as an image warehouse for the banks
- (d)
Both 1 and 2
- (e)
All of these
Which of the following is/was not included in the agenda set for Banking Reforms in India?
- (a)
Dismantling of administered interest rated
- (b)
Measures to strengthen risk management
- (c)
Promulgation of SARFAESI Act
- (d)
Promotion of the concept of easy credit to all with a guaranteed subsidy from the government
- (e)
Granting of operational autonomy to public sector banks and allowing them to raise capital from the open market
Insurance companies in India are regulated by
- (a)
AMFI
- (b)
IRDA
- (c)
SEBI
- (d)
RBI
- (e)
NABARD
When banks accept of fixed sum of money from an individual for a definite term and pay on maturity with interest, the deposit is known?
- (a)
Term deposit
- (b)
Demand deposit
- (c)
Bond
- (d)
Mortagage
- (e)
Advance
Which of the following is a leading electronic payment technology firm? (The logo of the firm can be seen printed on credit cards/ATM centres etc.
- (a)
Visa
- (b)
Max
- (c)
BSE
- (d)
Sensex
- (e)
SWAP
Which of the following is not a scheduled Commercial Banks?
- (a)
IDBI Bank
- (b)
Axis Bank
- (c)
HDFC Bank
- (d)
NABARD
- (e)
Kodak Mahindra Bank
What is the full form of LAF, the term used in banking world very frequently?
- (a)
Liquid Advance and Finance
- (b)
Liquidity Adjustment Facility
- (c)
Legal Adjournment Formality
- (d)
Local Advance Finance
- (e)
Late Arrival of Finance
When ever somebody needs foreign currency against Indian Rupee, banks give equivalent amount of desired currency based on prevalent?
- (a)
Bank rate
- (b)
Currency rate
- (c)
Policy rate
- (d)
Exchange rate
- (e)
Base rate
Which of the following organisations/agencies works solely to monitor and arrange flow of agriculture credit in India?
- (a)
NABRAD
- (b)
SIDBI
- (c)
RBI
- (d)
SEBI
- (e)
None of these
The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interests Act at present is not applicable to
- (a)
public sector banks
- (b)
private banks
- (c)
non-banking financial companies
- (d)
financial institutes of the government
- (e)
None of the above
Bank are required to provide loans to the priority sector upto a specified limit. What is the limit for public sector banks?
- (a)
40%
- (b)
32%
- (c)
45%
- (d)
35%
- (e)
60%
Non-performing assets are cause for serious concerns for banks. Why are these loans known as non-performing?
- (a)
Recovery of bank's funds are difficult
- (b)
Interest on these accounts are not charged
- (c)
Banks have to make provision for these loans in their balance sheet
- (d)
All of the above
- (e)
None of the above