Dear Aspirants,
Banking Awareness for NABARD Grade-A Exam 2018
With the increased competition in the field of banking examinations, it has now become very important to cover up all the sections efficiently. One subject that can help you bagging graceful marks in the minimum time in these examinations is Banking Awareness. Banking Awareness Quiz not only helps you deal with the General Awareness Section of Banking Exams but also, the Personal Interview round of Banking Recruitment.
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
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. The SARFAESI Act provides for the manner for enforcement of security interests by a secured creditor without the intervention of a court or tribunal. If any borrower fails to discharge his liability in repayment of any secured debt within 60 days of notice from the date of notice by the secured creditor, the secured creditor is conferred with powers under the SARFAESI Act.
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. The SARFAESI Act provides for the manner for enforcement of security interests by a secured creditor without the intervention of a court or tribunal. If any borrower fails to discharge his liability in repayment of any secured debt within 60 days of notice from the date of notice by the secured creditor, the secured creditor is conferred with powers under the SARFAESI Act.
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
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.”
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
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).
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).
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
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.
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.
Q5. ___________ is a voluntary market body for the bond, money and derivatives markets.
(a) RBI
(b) SEBI
(c) IRDAI
(d) FIMMDA
(e) UIDAI
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. FIMMDA has members representing all major institutional segments of the market. The membership includes Nationalized Banks such as State Bank of India, its associate banks and other nationalized banks; Private sector banks such as ICICI Bank, HDFC Bank, IDBI Bank; Foreign Banks such as Bank of America, ABN Amro, Citibank, Financial institutions such as IDFC, EXIM Bank, NABARD, Insurance Companies like Life Insurance Corporation of India (LIC), ICICI Prudential Life Insurance Company, Birla Sun Life Insurance Company and all Primary Dealers.
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. FIMMDA has members representing all major institutional segments of the market. The membership includes Nationalized Banks such as State Bank of India, its associate banks and other nationalized banks; Private sector banks such as ICICI Bank, HDFC Bank, IDBI Bank; Foreign Banks such as Bank of America, ABN Amro, Citibank, Financial institutions such as IDFC, EXIM Bank, NABARD, Insurance Companies like Life Insurance Corporation of India (LIC), ICICI Prudential Life Insurance Company, Birla Sun Life Insurance Company and all Primary Dealers.
Q6. The Department of Posts, trading as India Post, is a government-operated postal system in India. The Department of Posts comes under-
(a) Ministry of Commerce and Industry
(b) Ministry of Finance Department of Revenue
(c) Ministry of Finance & the Public Service
(d) Ministry of Communications and Information Technology
(e) Ministry of Home Affairs
S6. Ans.(d)
Sol. The Department of Posts comes under the Ministry of Communications and Information Technology. The Postal Service Board, the apex management body of the Department, comprises the Chairman and six Members. The six members of the Board hold portfolios of Personnel, Operations, Technology, Postal Life Insurance, Human Resources Development, Planning respectively.
Sol. The Department of Posts comes under the Ministry of Communications and Information Technology. The Postal Service Board, the apex management body of the Department, comprises the Chairman and six Members. The six members of the Board hold portfolios of Personnel, Operations, Technology, Postal Life Insurance, Human Resources Development, Planning respectively.
Q7. The Postal Service Board is ________ of the Department of Posts.
(a) apex management body
(b) regulatory management body
(c) financial management body
(d) statutory authority
(e) None of the given options is true
S7. Ans.(a)
Sol. The Postal Service Board, the apex management body of the Department of Posts, comprises the Chairman and six Members.
Sol. The Postal Service Board, the apex management body of the Department of Posts, comprises the Chairman and six Members.
Q8. How many members are comprises in the Postal Service Board?
(a) four
(b) three
(c) five
(d) two
(e) six
S8. Ans.(e)
Sol. The Postal Service Board, the apex management body of the Department, comprises the Chairman and six Members. The six members of the Board hold portfolios of Personnel, Operations, Technology, Postal Life Insurance, Human Resources Development, Planning respectively.
Q9. For providing postal services, the whole country has been divided into _______ postal circles.
(a) 21
(b) 25
(c) 23
(d) 27
(e) 29
S9. Ans.(c)
Sol. For providing postal services, the whole country has been divided into 23 postal circles. Each Circle is co-terminus? with a State except for Gujarat Circle (which also administers the Union Territories of Daman & Diu and Dadra & Nagar Haveli), Kerala Circle (which includes the Union Territory of Lakshadweep)?, Maharashtra Circle (which has within its jurisdiction the State of Goa), North East Circle (which comprises six North Eastern States – Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland & Tripura), Punjab Circle (which has within its administrative jurisdiction, the Union Territory of Chandigarh), and Tamil Nadu Circle (which also administers the Union Territory of Pondicherry). Each of these Circles is headed by a Pr. Chief Postmaster General or Chief Postmaster General. Each Circle is further divided into Regions comprising field units, called Divisions (Postal / RMS Divisions). Each Region is headed by a Postmaster General. In the Circles and Regions there are other functional units like Circle Stamp Depots, Postal Stores Depots and Mail Motor Service etc. Besides these 23 Circles, there is another Circle, called Base Circle, to cater to the postal communication needs of the Armed Forces. The Base Circle is headed by an Additional Director General, Army Postal Service in the rank of a Major General. The officer cadre of the Army Postal Service comprises officers on deputation from the Civil Posts. Seventy five percent of the other ranks of the Army Postal Service are also drawn from the Department of Posts and the remaining personnel are recruited by the Army.
Sol. For providing postal services, the whole country has been divided into 23 postal circles. Each Circle is co-terminus? with a State except for Gujarat Circle (which also administers the Union Territories of Daman & Diu and Dadra & Nagar Haveli), Kerala Circle (which includes the Union Territory of Lakshadweep)?, Maharashtra Circle (which has within its jurisdiction the State of Goa), North East Circle (which comprises six North Eastern States – Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland & Tripura), Punjab Circle (which has within its administrative jurisdiction, the Union Territory of Chandigarh), and Tamil Nadu Circle (which also administers the Union Territory of Pondicherry). Each of these Circles is headed by a Pr. Chief Postmaster General or Chief Postmaster General. Each Circle is further divided into Regions comprising field units, called Divisions (Postal / RMS Divisions). Each Region is headed by a Postmaster General. In the Circles and Regions there are other functional units like Circle Stamp Depots, Postal Stores Depots and Mail Motor Service etc. Besides these 23 Circles, there is another Circle, called Base Circle, to cater to the postal communication needs of the Armed Forces. The Base Circle is headed by an Additional Director General, Army Postal Service in the rank of a Major General. The officer cadre of the Army Postal Service comprises officers on deputation from the Civil Posts. Seventy five percent of the other ranks of the Army Postal Service are also drawn from the Department of Posts and the remaining personnel are recruited by the Army.
Q10. Who is present Secretary, Department of Posts & Chairperson of Postal Services Board?
(a) Meera Handa
(b) Ananta Narayan Nanda
(c) Usha Chandra Sekhar
(d) Achla Bhatnagar
(e) Udai Krishna
S10. Ans.(b)
Sol. Shri Ananta Narayan Nanda is present Secretary, Department of Posts & Chairperson of Postal Services Board and Director General Postal Services.
Sol. Shri Ananta Narayan Nanda is present Secretary, Department of Posts & Chairperson of Postal Services Board and Director General Postal Services.
Q11. IFS is software developed by UPU to coordinate international remittance services among the partner countries. At present the service is operational with La Poste Group, France and UAE. IFS stands for-
(a) International Financial Scheme
(b) Indian Financial System
(c) International Fund System
(d) International Financial System
(e) International Financial Service
S11. Ans.(d)
Sol. International Financial System (IFS) is software developed by UPU to coordinate international remittance services among the partner countries. At present the service is operational with La Poste Group, France and UAE.
Sol. International Financial System (IFS) is software developed by UPU to coordinate international remittance services among the partner countries. At present the service is operational with La Poste Group, France and UAE.
Q12. IFS Money Order service is India Post’s own service. What is the feature of IFS Money Order?
(a) Remittances can be received at any of the 17,500 post offices on eMO network.
(b) The Payee receives the full amount in Indian Rupees.
(c) Maximum of 30 transactions per person per year.
(d) Remittances up to INR 50,000 can be received in cash.
(e) All of the above are features of IFS Money Order services
S12. Ans.(e)
Sol. IFS Money Order service is India Post’s own service. The remittances received under this service are being paid through our eMO service. The features of IFS Money Order service is given below.
• Remittances can be received at any of the 17,500 post offices on eMO network.
• The Payee receives the full amount in Indian Rupees.
• Remittances up to INR 50,000 can be received in cash.
• Amount exceeding INR 50,000 to be paid through Cheque subject to a maximum limit of USD 2500.
• Maximum of 30 transactions per person per year.
• Beneficiary has to furnish Unique MO Number (9 digits in case of UAE and 26 digits in case of France) along with valid identification documents like Voter ID Card, Driving License, PAN Card, Ration Card, Aadhar Card, Passport etc. A copy of such document has to be handed over to Post Office staff for their record (KYC Documents).
• Same day payment for remittances booked before cut-off time.
• Payments subject to RBI Guidelines from time to time.
• Payment can be collected from identified Post offices.
Sol. IFS Money Order service is India Post’s own service. The remittances received under this service are being paid through our eMO service. The features of IFS Money Order service is given below.
• Remittances can be received at any of the 17,500 post offices on eMO network.
• The Payee receives the full amount in Indian Rupees.
• Remittances up to INR 50,000 can be received in cash.
• Amount exceeding INR 50,000 to be paid through Cheque subject to a maximum limit of USD 2500.
• Maximum of 30 transactions per person per year.
• Beneficiary has to furnish Unique MO Number (9 digits in case of UAE and 26 digits in case of France) along with valid identification documents like Voter ID Card, Driving License, PAN Card, Ration Card, Aadhar Card, Passport etc. A copy of such document has to be handed over to Post Office staff for their record (KYC Documents).
• Same day payment for remittances booked before cut-off time.
• Payments subject to RBI Guidelines from time to time.
• Payment can be collected from identified Post offices.
Q13. Department of Post’s (DOP) MMT is a service that enables instant money transfer from one place to another place using mobile, through Indian post offices. What is the meaning of “T” in MMT?
(a) Trust
(b) Transfer
(c) Timely
(d) Transaction
(e) Truncated
S13. Ans.(b)
Sol. DOP Mobile Money Transfer (MMT) is a service that enables instant money tra?nsfer from one place to another place using mobile, through Indian post offices. The consumer just needs to have a mobile while the actual transmission of the money is initiated by the Postal Assistant, using his/her special handset. The process for money transfer is very simple to understand and follow. This service will be a boon for those sections of our society who regularly remit money to their homes at faraway places and who have no access to any other financial instrument like bank account etc. except mobile phones.
Sol. DOP Mobile Money Transfer (MMT) is a service that enables instant money tra?nsfer from one place to another place using mobile, through Indian post offices. The consumer just needs to have a mobile while the actual transmission of the money is initiated by the Postal Assistant, using his/her special handset. The process for money transfer is very simple to understand and follow. This service will be a boon for those sections of our society who regularly remit money to their homes at faraway places and who have no access to any other financial instrument like bank account etc. except mobile phones.
Q14. ______________ is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India by India Post.
(a) EMO network
(b) International Financial System
(c) Money Transfer Service Scheme
(d) National Electronic Funds Transfer
(e) Society for Worldwide Interbank Financial Telecommunication
S14. Ans.(c)
Sol. Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favoring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS.
Sol. Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favoring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS.
Q15. As a result of the collaboration of the Department of Posts, Government of India with the Western Union Financial Services, a state of the art International Money transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around ____________ countries and territories to India.
(a) 195 countries
(b) 415 countries
(c) 115 countries
(d) 135 countries
(e) 295 countries
S15. Ans.(a)
Sol. Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favoring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS. As a result of the collaboration of the Department of Posts, Government of India with the Western Union Financial Services, a state of the art International Money transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around 195 countries and territories to India. The recipients can in fact collect the money in minutes after the sender has made the remittance.
S15. Ans.(a)
Sol. Money Transfer Service Scheme is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India. Only inward personal remittances into India such as remittances towards family maintenance and remittances favoring foreign tourists visiting India are permissible. No outward remittance from India is permissible under MTSS. As a result of the collaboration of the Department of Posts, Government of India with the Western Union Financial Services, a state of the art International Money transfer Service is now available through the Post Offices in India, which enables instantaneous remittance of money from around 195 countries and territories to India. The recipients can in fact collect the money in minutes after the sender has made the remittance.
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