Banking Awareness-IBPS PO/RRB/CLERK/SBI PO/UIICL

Banking Awareness for IBPS Exam 2017

Q1. Standard & Poor's (S&P) Global Ratings and its predecessor organizations have been in business for more than 150 years. (S&P) based in-
(a) New York, USA
(b) London, UK
(c) Paris, France
(d) Vienna, Austria
(e) Geneva, Switzerland
Sol. Standard & Poor’s Financial Services is an American (New York, USA) financial services company. It is a division of S&P Global that publishes financial research and analysis on stocks, bonds and commodities.

Q2. Which is a full service credit rating agency exclusively set up for micro, small and medium enterprises?
(a) CRISIL
(b) ICRA
(c) CARE
(d) ONICRA
(e) SMERA
Sol. SMERA Ratings Limited (formerly SME Rating Agency of India Ltd.) is a full service credit rating agency exclusively set up for micro, small and medium enterprises.

Q3. Which of the following is an independent banking industry watchdog that protects consumers of banking services in the country?
(a) BBB
(b) IBA
(c) BCSBI
(d) IBRD
(e) RBI
Sol. The Banking Codes and Standards Board of India (BCSBI) is an independent banking industry watchdog that protects consumers of banking services in India.

Q4. The Banking Codes and Standards Board of India (BCSBI) was registered as a society under the _____________ in February 2006.
(a) Companies Act, 1956
(b) Societies Registration Act, 1860
(c) Banking Regulation Act, 1949
(d) Reserve Bank of India Act, 1934
(e) None of the given options is true
Sol. The Banking Codes and Standards Board of India was registered as a society under the Societies Registration Act, 1860 in February 2006. It functions as an independent and autonomous body. Membership of BCSBI is voluntary and open to scheduled banks.  

Q5. Where is the head office of SMERA?
(a) Chennai
(b) Gurugram
(c) New Delhi
(d) Mumbai
(e) Bengaluru
Sol. SMERA has its Registered and Head Office in Mumbai, branches at 9 cities and representatives in more than 50 clusters across India.

Q6. Name the Private sector Bank, which has received $150 million funding from the US government and Wells Fargo to increase lending to support women entrepreneurs and small and medium-sized enterprises in India.
(a) Axis Bank
(b) ICICI Bank
(c) Yes Bank
(d) Kotak Mahindra Bank
(e) South Indian Bank
Sol. Private sector YES Bank has received $150 million funding from the US government and Wells Fargo to increase lending to support women entrepreneurs and small and medium-sized enterprises in India. 

Q7. What is the minimum amount to be remitted through RTGS-
(a) Rs.2 lakh
(b) Rs.10 lakh
(c) Rs.1 lakh
(d) Rs.5 lakh
(e) Rs.20 lakh
Sol. The minimum amount to be remitted through RTGS is Rs2 lakh. 

Q8. Which Bank has tied up with PFG Forex for remittance facility for the benefit of Indian expatriates from Australia. The new facility will leverage the bank to reach the Indian diaspora?
(a) Axis Bank
(b) ICICI Bank
(c) Bank of Baroda
(d) State Bank of India
(e) South Indian Bank
Sol. South Indian Bank has tied up with PFG Forex for remittance facility for the benefit of Indian expatriates from Australia. The new facility will leverage the bank to reach the Indian diaspora.

Q9. FINO Payments Bank has commenced operations as a payments bank with effect from 30th June 2017 according to the Reserve Bank of India. Where is the head office of FINO Payments Bank?
(a) Chennai
(b) Jaipur
(c) Bengaluru
(d) Mumbai
(e) Chennai
Sol. FINO Payments Bank has commenced operations as a payments bank with effect from 30th June 2017 according to the Reserve Bank of India. The Head Office of FINO PayTech Ltd. is in Mumbai and it was one of the 11 applicants which were issued in-principle approval for setting up a payments bank. 

Q10. The Financial Stability Board (FSB) is an international body for the global financial system, has placed India in the league of countries that are 'compliant or largely compliant’ on the implementation of priority area reforms. In which among the following year FSB was established?
(a) 2001
(b) 2009
(c) 2003
(d) 2015
(e) 1997
Sol. The Financial Stability Board (FSB), an international body for the global financial system, has placed India in the league of countries that are 'compliant or largely compliant’ on the implementation of priority area reforms. Ahead of the G20 Summit in Germany to be attended by Prime Minister Narendra Modi, among other world leaders, the FSB has submitted its status report on progress in financial regulatory reforms in various jurisdictions, including India. The FSB was established in April 2009 as the successor to the Financial Stability Forum (FSF).

Q11. NPA is a loan or an advance where interest and/or installment of principal remain overdue for a period of more than ______ days in respect of a term loan.
(a) 100 days
(b) 30 days
(c) 90 days
(d) 60 days
(e) 120 days
Sol. A non ­performing asset (NPA) is a loan or an advance where interest and/or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.

Q12. NPA is a loan or an advance where?
(a) the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
(b) the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
(c) the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops.
(d) All of the above
(e) None of the above
Sol. A non ­performing asset (NPA) is a loan or an advance where;
1. interest and/or installment of principal remain overdue for a period of more than 90 days in respect of a term loan.
2. the account remains ‘out of order’ in respect of an Overdraft/Cash Credit (OD/CC).
3. the bill remains overdue for a period of more than 90 days in the case of bills purchased and discounted.
4. the instalment of principal or interest there on remains overdue for two crop seasons for short duration crops.
5. the instalment of principal or interest there on remains overdue for one crop season for long duration crops.
6. the amount of liquidity facility remains outstanding for more than 90 days, in respect of a securitisation transaction undertaken in terms of guidelines on securitisation dated February 1, 2006.
7. in respect of derivative transactions, the overdue receivables representing positive mark-to-market value of a derivative contract, if these remain unpaid for a period of 90 days from the specified due date for payment.

Q13. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like-
(a) Banks
(b) NBFCs
(c) MFIs
(d) All of the above
(e) None of the above
Sol. MUDRA, which stands for Micro Units Development & Refinance Agency Ltd, is a financial institution being set up by Government of India for development and refinancing micro units’ enterprises. It was announced by the Hon’ble Finance Minister while presenting the Union Budget for FY 2016. The purpose of MUDRA is to provide funding to the non-corporate small business sector through various Last Mile Financial Institutions like Banks, NBFCs and MFIs. 

Q14. MUDRA Bank, a Non Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of............?
(a) SIDBI
(b) IDBI
(c) RBI
(d) NABARD
(e) SBI
Sol. MUDRA Bank, a Non Banking Finance Company as MUDRA Ltd has been set up as a subsidiary of SIDBI.

Q15. In which among the following year Asia's first Export Processing Zone (EPZ) was set up?
(a) 1959
(b) 1971
(c) 1965
(d) 1956
(e) 1975
Sol. India was one of the first in Asia to recognize the effectiveness of the Export Processing Zone (EPZ) model in promoting exports, with Asia's first EPZ set up in Kandla, Gujarat in 1965. With a view to overcome the shortcomings experienced on account of the multiplicity of controls and clearances; absence of world-class infrastructure, and an unstable fiscal regime and with a view to attract larger foreign investments in India, the Special Economic Zones (SEZs) Policy was announced in April 2000.