Banking Awareness Quiz for Bank Exam: 03-September-2020

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The Banking Awareness section constitutes a major part of a competitive examination and needs your undivided attention. With the increased competition in the field of Banking examinations, it has now become very important to cover up all the sections efficiently.

Banking Affairs 03rd September 2020 Quiz

To complement your preparation for General Awareness section of the upcoming exams like SBI Clerk Mains and RBI Assistant Mains we are providing you Banking Awareness Quiz of 03rd September 2020 covering the following topics: Non Performing Assets, Asset Reconstruction Company, BBPOUs, Public Provident Fund.

Q1. Which Act was framed specially to deal with Non Performing Assets (NPA)?
(a) Banking Regulation Act 1949
(b) Foreign Exchange Management Act(FEMA) 1999
(c) Industrial Disputes Act 1947
(d) SARFAESI Act, 2002
(e) None of the given options is true

Q2. In Notice Money Market,the tenor of the transactions is from ________
(a) 2-7 days
(b) 2-14 days
(c) 2-21 days
(d) 2-28 days
(e) 2-90 days

Q3. An Asset Reconstruction Company (ARC) in India is associated with-
(a) UCPDC
(b) DICGC
(c) NPA
(d) Home Loan
(e) None of the given options is true

Q4. Which of the following is mainly used by the banks in order to meet their temporary requirement of Cash on a daily basis?
(a) Commercial Paper
(b) Certificate of Deposit
(c) Collateralized Borrowing and Lending Obligations (CBLO)
(d) Call Money
(e) None of the given options is true

Q5. ___________ is a voluntary market body for the bond, money and derivatives markets.
(a) RBI
(b) SEBI
(c) IRDAI
(d) FIMMDA
(e) UIDAI

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Q6. Who among the following regulates the Indian Corporate Debt Market?
(a) RBI
(b) NABARD
(c) SIDBI
(d) SEBI
(e) PFRDA

Q7. _______ is an integrated bill payment system which will offer inter operable bill payment service to customers online as well as through a network of agents on the ground.
(a) BBPS
(b) IMPS
(c) AEPS
(d) APBS
(e) None of the given options is true

Q8. To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval/authorisation to Reserve Bank of India under ________
(a) Payment and Settlement Systems (PSS) Act 2007
(b) Foreign Exchange Management Act, 1999
(c) Banking Regulation Act, 1949
(d) SARFAESI Act, 2002
(e) None of the given options is true

Q9. Which of the following will function as the Bharat Bill Payment Central Unit (BBPCU), single authorized entity operating the BBPS?
(a) RBI
(b) NPCI
(c) GOI
(d) SEBI
(e) NABARD

Q10. As per the Reserve Bank of India, BBPS will initially accept utility bill payments such as-
(a) Telephone Bill
(b) Electricity Bill
(c) DTH services
(d) All of the Above
(e) None of the given options is true

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Q11. NSDL is the first and largest depository in India, established in-

(a) August 2003
(b) August 1991
(c) August 1989
(d) August 1999
(e) August 1996

Q12. A Public Provident Fund (PPF) account holder can deposit a maximum of-
(a) 1.5 Lakhs
(b) 2.5 Lakhs
(c) 1.0 Lakh
(d) 3.5 Lakhs
(e) 5.0 Lakhs

Q13. Where is the headquarters of Paschim Banga Gramin Bank?
(a) Howrah, West Bengal
(b) Nagpur, Maharashtra
(c) Dumka, Jharkhand
(d) Bolangir, Odisha
(e) Bathinda, Punjab

Q14. National Securities Depository Limited is an Indian central securities depository based in _______
(a) New Delhi
(b) Chennai
(c) Hyderabad
(d) Mumbai
(e) Bengaluru

Q15. The Board of Industrial and Financial Reconstruction (BIFR) came into existence in-
(a) 1999
(b) 1995
(c) 1991
(d) 1987
(e) 1982

Solutions

S1. Ans.(d)
Sol. SARFAESI Act (The Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) was enacted to regulate securitization and reconstruction of financial assets and enforcement of security interest created in respect of Financial Assets to enable realization of such assets.

S2. Ans.(b)
Sol. In money market, the amount that is lent for one day is known as “call money” and, if it exceeds one day or two days to 14 days is referred to as “notice money.”

S3. Ans.(c)
Sol. Asset Reconstruction Company (ARC) also known as Securitization company in India helps to unlock the value of non-performing assets (NPA) in banks through Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act 2002.ARC is regulated by RBI as a Non Banking Financial Company (NBFC).

S4. Ans.(d)
Sol. Call money market is a market for uncollateralized lending and borrowing of funds. This market is predominantly overnight and is open for participation only to scheduled commercial banks and the primary dealers.

S5. Ans.(d)
Sol. The Fixed Income Money Market and Derivatives Association of India (FIMMDA), an association of Scheduled Commercial Banks, Public Financial Institutions, Primary Dealers and Insurance Companies was incorporated as a Company under section 25 of the Companies Act,1956 on June 3rd, 1998. FIMMDA is a voluntary market body for the bond, money and derivatives markets.

S6. Ans.(d)
Sol. Regulator for the Indian Corporate Debt Market is the Securities and Exchange Board of India (SEBI). SEBI controls bond market and corporate debt market in cases where entities raise money from public through public issues.

S7. Ans.(a)
Sol. The Bharat Bill Payment System (BBPS) is a RBI mandated system which will offer integrated and interoperable bill payment services to customers across geographies with certainty, reliability and safety of transactions.

S8. Ans.(a)
Sol. To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval / authorisation to Reserve Bank of India under Payment and Settlement Systems (PSS) Act 2007. Bharat Bill Payment Operating Units (BBPOUs) will be the authorised operational units.

S9. Ans.(b)
Sol. National Payments Corporation of India (NPCI) will function as the authorized Bharat Bill Payment Central Unit (BBPCU), which will be responsible for setting business standards, rules and procedures for technical and business requirements for all the participants. NPCI, as the BBPCU, will also undertake clearing and settlement activities
related to transactions routed through BBPS.

S10. Ans.(d)
Sol. As per the Reserve Bank of India, BBPS will initially accept utility bill payments such as electricity, water, gas, telephone and direct-to-home services and will later include other repetitive payments including school and university fees and municipal taxes.

S11. Ans.(e)
Sol. NSDL, the first and largest depository in India, established in August 1996 and promoted by institutions of national stature responsible for economic development of the country has since established a national infrastructure of international standards that handles most of the securities held and settled in dematerialised form in the Indian capital market.

S12. Ans.(a)
Sol. A Public Provident Fund (PPF) account holder can deposit a maximum of Rs 1.5 lakhs in his/her PPF account.

S13. Ans.(a)
Sol. The headquarters of Paschim Banga Gramin Bank is Howrah, West Bengal.

S14. Ans.(d)
Sol. National Securities Depository Limited is an Indian central securities depository based in Mumbai.

S15. Ans.(d)
Sol. The Board of experts named the Board for Industrial and Financial Reconstruction (BIFR) was set up in January, 1987 and functional with effect from 15th May 1987. The Appellate Authority for Industrial and Financial Reconstruction (AAIRFR) was constituted in April 1987.

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