Banking Awareness Questions for Bank of Baroda PO | 25th June 2018

S1. Ans.(d)
Sol. Reserve Bank has stated that interest subsidy scheme on short-term crop loans of up to three lakh rupees will be implemented through the Direct Benefit Transfer (DBT) mode from the current financial year.

Q2. Monetary Policy Committee (MPC) of RBI has increased the policy Repo Rate under the liquidity adjustment facility (LAF) by 25 basis points to _______________ percent in the Second Bi-monthly Monetary Policy Statement (2018-19).
(a) 5.75 percent
(b) 6.25 percent
(c) 6.50 percent
(d) 6.75 percent
(e) 5.50 percent

S2. Ans.(b)
Sol. Monetary Policy Committee (MPC) of Reserve Bank of India has increased the policy Repo Rate under the liquidity adjustment facility (LAF) by 25 basis points to 6.25 percent in the Second Bi-monthly Monetary Policy Statement (2018-19). Consequently, the reverse repo rate under the LAF stands adjusted to 6.0 percent, and the marginal standing facility (MSF) rate and the Bank Rate to 6.50 percent.

Q3. RBI has made changes in the Gold Monetisation Scheme (GMS) to make it more attractive. In which year Gold Monetisation Scheme was launched?
(a) 2017
(b) 2016
(c) 2014
(d) 2013
(e) 2015

S3. Ans.(e)
Sol. RBI has made changes in the Gold Monetization Scheme (GMS) to make it more attractive. The revamping of the scheme is aimed at enabling people to open a hassle-free gold deposit account. Gold Monetisation Scheme was launched in 2015.

Q4. In a bid to check loan defaults, RBI stated that a PCR will be set up containing information on all borrowers to ensure financial stability. What is the full form of PCR?
(a) Public Credit Review
(b) Public Customer Registry
(c) Public Credit Registry
(d) People Credit Registry
(e) Public Credit Rating

S4. Ans.(c)
Sol. In a bid to check loan defaults, RBI stated that a Public Credit Registry (PCR) will be set up containing information on all borrowers to ensure financial stability. Following a report by Yeshwant M Deosthalee headed High-Level Task Force, RBI stated it has considered the recommendations and decided to set up a PCR in a modular and phased manner.

Q5. Which organization has released the draft guidelines to modify the loan system for delivery of bank credit, making the rules stricter to regulate larger borrowers enjoying working capital facility from the banking system?
(a) RBI
(b) SEBI
(c) NABARD
(d) SBI
(e) Finance Ministry

S5. Ans.(a)
Sol. The Reserve Bank of India (RBI) released the draft guidelines to modify the loan system for delivery of bank credit, making the rules stricter to regulate larger borrowers enjoying working capital facility from the banking system. The draft specifies a minimum level of loan component in fund based working capital finance and a mandatory Credit Conversion Factor (CCF) for the undrawn portion of cash credit availed of by large borrowers.

Q6. Union Cabinet has approved the proposal for grant of permission to _______________ to raise additional share capital of up to a maximum of 24,000 crore rupees.
(a) ICICI Bank
(b) State Bank of India
(c) HDFC Bank
(d) Bank of Baroda
(e) Axis Bank

S6. Ans.(c)
Sol. Union Cabinet has approved the proposal for grant of permission to HDFC Bank to raise additional share capital of up to a maximum of 24,000 crore rupees. The composite foreign shareholding in the Bank will not exceed 74% of the enhanced paid-up equity share capital of the bank.

Q7. Marg ERP limited, a leading Inventory and Accounting software solution company has partnered with __________________,  by consolidated assets, to offer an integrated payments platform to MSME customers, using MARG’s accounting software.
(a) ICICI Bank
(b) State Bank of India
(c) Axis Bank
(d) Bank of Baroda
(e) Kotak Mahindra Bank

S7. Ans.(a)
Sol. Marg ERP limited, a leading Inventory and Accounting software solution company has partnered with ICICI Bank, India’s largest private sector bank by consolidated assets, to offer an integrated payments platform to Micro, Small and Medium Enterprise (MSME) customers, using MARG’s accounting software.

Q8. Global Rating agency Fitch has announced that ICICI Bank and Axis Bank have inequalities in their risk control mechanisms and has revised down its outlook on the latter to negative on sour assets worries. Where is the headquarters of Fitch? 
(a) London
(b) New York
(c) Paris
(d) Vienna
(e) Both (a) and (b)

S8. Ans.(e)
Sol. Global Rating agency Fitch has announced that ICICI Bank and Axis Bank have inequalities in their risk control mechanisms and has revised down its outlook on the latter to negative on sour assets worries. The Headquarters of Fitch is in New York, U.S, and London, U.K.

Q9. Who has appointed as whole-time director and chief operating officer (COO) of ICICI Bank recently?
(a) B Sriram
(b) Sandeep Bakhshi
(c) Arjit Basu
(d) Inder Jit Singh
(e) Arvind Subramanian

S9. Ans.(b)
Sol. The ICICI Bank board has appointed ICICI Prudential Life Insurance CEO Sandeep Bakhshi as whole-time director and chief operating officer (COO), creating a new top position at India’s second largest private bank, to steer all its businesses.

Q10. RBI has eased investment norms for FPIs in debt, especially into individual large corporates, a move that can help attract more overseas flows and thereby help arrest the recent fall in the rupee. What is the meaning of “I” in FPIs?
(a) Indian
(b) Increase
(c) Initial
(d) Investors
(e) Installment

S10. Ans.(d)
Sol. The Reserve Bank of India has eased investment norms for Foreign Portfolio Investors (FPIs) in debt, especially into individual large corporates, a move that can help attract more overseas flows and thereby help arrest the recent fall in the rupee.

Q11. Concerned over funds sent abroad under the ‘maintenance of close relative’ category of the LRS, the RBI has narrowed the definition of relatives to check the flow of funds. LRS stands for-  
(a) Logical Remittance Scheme
(b) Liberalised Remittance Scheme
(c) Liberalised Remittance System
(d) Liberalised Remittance Service
(e) Liberalised Regular Scheme

S11. Ans.(b)
Sol. Concerned over funds sent abroad under the ‘maintenance of close relative’ category of the Liberalised Remittance Scheme (LRS), the Reserve Bank of India (RBI) has narrowed the definition of relatives to check the flow of funds. Hence, funds under the ‘maintenance of close relative’ category can be sent only to immediate relatives such as parents, spouses, children and their spouses.

Q12. RBI revised the upwards housing loan limits under Priority Sector Lending. The existing family income limit of Rs 2 lakh per annum for availing of the loans for housing projects for Economically Weaker Sections (EWS) and Low Income Groups (LIG) now stands revised to Rs ________ lakh per annum and Rs _________ lakh per annum, respectively. 
(a) 3 lakh and 6 lakh
(b) 4 lakh and 7 lakh
(c) 6 lakh and 8 lakh
(d) 7 lakh and 5 lakh
(e) 9 lakh and 10 lakh

S12. Ans.(a)
Sol. The Reserve Bank of India (RBI) revised the upwards housing loan limits under Priority Sector Lending (PSL). The housing loan limits were revised to bring the union of the PSL guidelines for housing loans with the Affordable Housing Scheme of the Union Government and to give a stimulus to low-cost housing for the economically weaker sections and low-income groups.

The existing family income limit of Rs 2 lakh per annum for availing of the loans for housing projects for Economically Weaker Sections (EWS) and Low Income Groups (LIG) now stands revised to Rs 3 lakh per annum and Rs 6 lakh per annum, respectively. These changes have been done in alignment with the income criteria specified under the Pradhan Mantri Awas Yojana (PMAY).

Q13. SEBI has approved amendments to buyback and takeover regulations and changed the time for announcing the price band of initial public offering (IPO) from 5 to _________ days recently.
(a) 10 days
(b) 9 days
(c) 7 days
(d) 4 days
(e) 2 days

S13. Ans.(e)
Sol. The Securities and Exchange Board (SEBI) has approved amendments to buyback and takeover regulations and changed the time for announcing the price band of initial public offering (IPO) from 5 to 2 days, according to the chairman of SEBI, Ajay Tyagi.

Q14. Who has appointed as the IDBI Bank’s CEO and Managing Director for a temporary period of three months? 
(a) Arjit Basu
(b) Sandeep Bakhshi
(c) B Sriram
(d) Inder Jit Singh
(e) Arvind Subramanian

S14. Ans.(c)
Sol. State Bank of India’s (SBI) Managing Director B Sriram was appointed as the IDBI Bank’s CEO and Managing Director for a temporary period of three months. He has been appointed in place of incumbent Mahesh Kumar Jain who was recently named Deputy Governor of the Reserve Bank of India (RBI).

Q15. FDI to India decreased to _______________ billion dollars last year from 44 billion dollars in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN.
(a) 39 billion dollars
(b) 38 billion dollars
(c) 41 billion dollars
(d) 40 billion dollars
(e) 42 billion dollars

S15. Ans.(d)
Sol. Foreign Direct Investment to India decreased to 40 billion dollars last year from 44 billion dollars in 2016 while outflows from India, the main source of investment in South Asia, more than doubled, according to a new trade report by the UN. According to the World Investment Report, 2018 by the UN Conference on Trade and Development (UNCTAD) global foreign direct investment flows fell by 23 percent in 2017, to USD 1.43 trillion from USD 1.87 trillion in 2016.