Money & Banking

Which one of the following correctly represents the three key sub-indices of the Financial Inclusion Index (FI-Index) of the Reserve Bank of India (RBI) ?

10. Which one of the following statements about Unified Payments Interface (UPI) and Central Bank Digital Currency (Digital Rupee) is not correct ? =

Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India : 1. NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself. 4, Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs. Which of the statements given above is/are correct ?

Which of the following are sources of income for the Reserve Bank of India: buying/selling Government bonds; buying/selling foreign currency; pension fund management; lending to private companies; printing and distributing currency notes?

Consider the following statements: Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders. Statement-II: The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line. Which one of the following is correct in respect of the above statements?

Consider the following statements in respect of the digital rupee: 1. It is a sovereign currency issued by the Reserve Bank of India (RBI) in alignment with its monetary policy. 2. It appears as a liability on the RBI's balance sheet. 3. It is insured against inflation by its very design. 4. It is freely convertible against commercial bank money and cash. Which of the statements given above are correct?

With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements: 1. There is no minimum capital requirement for wholly owned banking subsidiaries in India. 2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals. Which of the statements given above is/are correct?

With reference to Central Bank digital currencies, consider the following statements: 1. It is possible to make payments in a digital currency without using US dollar or SWIFT system. 2. A digital currency can be distributed with a condition programmed into it such as a time-frame for spending it. Which of the statements given above is/are correct?

With reference to the ‘Banks Board Bureau (BBB) which of the following statements are correct? 1. The Governor of the Chairman of BBB. 2. BBB recommends for the selection of head for Public Sector Banks. 3. BBB helps the Public Sector Banks in developing strategies and capital raising plans. Select the correct answer using the code given below:

The money multiplier in an economy increases with which one of the following?

With reference to ‘WaterCredit’, consider the following statements: 1. It puts microfinance tools to work in the water and sanitation sector. 2. It is a global initiative launched under the aegis of the World Health Organization and the World Bank. 3. It aims to enable the poor people to meet their water needs without depending on subsidies. Which of the statements given above are correct?

In India, the central bank’s function as the ‘lender of last resort’ usually refers to which of the following?

Consider the following statements: 1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government. 2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest. 3. The Governor of the RBI draws his power from the RBI Act. Which of the above statements are correct?

With reference to ‘Urban Cooperative Banks’ in India, consider the following statements: 1. They are supervised and regulated by local boards set up by the State Governments. 2. They can issue equity shares and preference shares. 3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966. Which of the statements given above is/are correct?

Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

If you withdraw Rs. 1,00,000 in cash from your Demand Deposit Account at your bank, the immediate effect on aggregate money supply in the economy will be

Consider the following statements: 1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Bank and Regional Rural Banks. 2. One of the most important functions of DCCBs id to provide funds to the Primary Agricultural Credit Societies. Which of the statement give above is/are correct?

What was the purpose of inter creditor Agreement signed by Indian Banks and Financial institution recently?

The Chairman of public sector banks are selected by the

The Service Area Approach was implemented under the purview of

Which of the following is not included in the assets of a commercial bank in India?

In the context of India, which of the following factors is/are contributor/contributors to reducing the risk of a currency crisis? 1. The foreign currency earnings of India’s IT sector 2. Increasing the government expenditure 3. Remittances from Indians abroad Select the correct answer using the code given below.

Which of the following is not the most likely measure the Government/ RBI takes to stop the slide of Indian rupee?

Consider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data diktat, command the payment system providers that 1. They shall ensure that entire data relating to payment systems operated by them are stored in a system only in India 2. They shall ensure that the systems are owned and operated by pubic sectore enterprises 3. They shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year Which of the statement given above is are correct

The money multiplier in an economy increases with which one of the following?

Which one of the following best describes the term “Merchant Discount Rate” sometimes seen in news ?

Which one of the following links all the ATMs in India ?

Consider the following statements: 1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues. 2. CAR is decided by each individual bank. Which of the statements given above is/are correct?

With reference to digital payments, consider the following statements: 1. BHIM app allows the user to transfer money to anyone with a UPI-enabled bank account. 2. While a chip-pin debit card has four factors of authentication, BHIM app has only two factors of authentication. Which of the statements given above is/are correct?

Which one of the following statements correctly describes the meaning of legal tender money ?

Consider the following statements: 1. The Reserve Bank of India manages and services Government of India Securities but not any State Government Securities. 2. Treasury bills are issued by the Government of India and there are no treasury bills issued by the State Governments. 3. Treasury bills offer are issued at a discount from the par value. Which of the statements given above is/are correct?

With reference to the governance of public sector banking in India, consider the following statements 1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade 2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected. Which of the statements given above is/are correct ?

Which of the following statements is/are correct regarding the Monetary Policy Committee? 1. It decides the RBI’s benchmark interest rates. 2. It is a 12 member body including the Governor of RBI and is reconstituted every year. 3. It function under the Chairmanship of the Union Finance Minister. Select the correct answer using the codes given below.

With reference to the ‘Prohibition of Benami Property Transaction Act, 1988 (PBPT Act)’, consider the following statements : 1. A property transaction is no treated as a benami transaction if the owner of the property is not aware of the transaction. 2. Properties held benami are liable for confiscation by the Government 3. The act provides for three authorities for investigations but does not provide for any appellate mechanism Which of the statements given above is/are correct?

What is the purpose of setting up of Small Finance Banks (SFBs) in India? 1. To supply credit to small business units. 2. To supply credit to small and marginal farmers. 3. To encourage young entrepreneurs to set up business particularly in rural areas. Select the correct answer using the code given below:

Which of the following statements best describes the- term ‘Scheme for Sustainable Structuring of Stressed Assets (S4A)’, recently seen in the news?

Consider the following statements: 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NCPI has launched RuPay, a card Payment scheme. Which of the statements given above is/are correct?

1. promote entrepreneurship among SC/ST and women entrepreneurs. 2. It provides for refinance through SIDBI.

1. It is a networking of a bank’s branches which enables customers to operate their accounts from any branch of the bank on its network regardless of where they open their accounts. 2. It is an effort to increase RBI’s control over commercial banks through computerization. 3. It is a detailed procedure by which a bank with huge non-performing assets is taken over by another bank.

1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances. 2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.

1. Bitcoins are tracked by the Central Banks of the countries. 2. Anyone with a Bitcoin address can send and receive Bitcoins from anyone else with a Bitcoin address. 3. Online payments can be sent without either side knowing the identity of the other.

1. To bring the idle gold lying with Indian households into the economy 2. To promote FDI in the gold and jewellery sector 3. To reduce India’s dependence on gold imports

1. Mobile telephone companies and supermarket chains that are owned and controlled by residents are eligible to be promoters of Payment Banks 2. Payment Banks can issue both credit cards and debit cards. 3. Payment Banks cannot undertake lending activities.

1. IMFC discusses matters of concern affecting the global economy, and advises the International Monetary Fund (IMF) on the direction of its work. 2. The World Bank participates as observer in IMFC’s meetings. Which of the statements given above is/are correct?

“Pradhan Mantri Jan-Dhan Yojna’ has been launched for

When the Reserve Bank of India reduces the Statutory Liquidity Ratio by 50 basis points, which of the following is likely to happen?

Convertibility of rupee implies

‘Basel III Accord’ or simply ‘Basel III’, often seen in the news, seeks to

The terms ‘Marginal Standing Facility Rate’ and ‘Net Demand and Time Liabilities’, sometimes appearing in news, are used in relation to

What is/are the facility/facilities the beneficiaries can get from the services of Business Correspondent (Bank Saathi) in branchless areas? 1. It enables the beneficiaries to draw their subsidies and social security benefits in their villages. 2. It enables the beneficiaries in the rural areas to make deposits and withdrawals.

In the context of Indian economy; which of the following is/are the purpose/purposes of ‘Statutory Reserve Requirements’? 1. To enable the Central Bank to control the amount of advances the banks can create 2. To make the people’s deposits with banks safe and liquid 3. To prevent the commercial banks from making excessive profits 4. To force the banks to have sufficient vault cash to meet their day-to-day requirements

If the interest rate is decreased in an economy, it will

The Reserve Bank of India regulates the commercial banks in matters of 1\. liquidity of assets 2\. branch expansion 3\. merger of banks 4\. winding-up of banks Select the correct answer using the codes given below.

Consider the following liquid assets: 1.Demand deposits with the banks 2.Time deposits with the banks 3.Savings deposits with the banks 4.Currency The correct sequence of these decreasing order of Liquidity is

Priority Sector Lending by banks in India constitutes the lending to

Which of the following grants/ grant direct credit assistance to rural households ? 1\. Regional Rural Banks 2\. National Bank for Agriculture and Rural Development 3\. Land Development Banks Select the correct anser using the codes given below:

The Reserve Bank of India (RBI) acts as a bankers’ bank. This would imply which of the following? 1 Other bank retains their deposits with the RBI. 2 The RBI lends funds to the commercial banks in times of need. 3 The RBI advises the commercial banks on monetary matters.

The basic aim of Lead Bank Scheme is that

Why is the offering of “teaser loans” by commercial banks a cause of economic concern? 1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future. 2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units. Which of the statements given above is/are correct?

In India, which of the following have the highest share in the disbursement of credit to agriculture and allied activities?

Microfinance is the provision of financial services to people of low-income goups. This includes both the consumers and the self-employed. The service/services rendered under micro-finance is/are: 1. Credit facilities 2. Savings facilities 3. Insurance facilities 4. Fund Transfer facilities Select the correct answer using the codes given below the lists:

Regarding the International Monetary Fund, which one of the following statements is correct?