General Awareness Quiz for RBI Grade-B 2023-8th February

Q1. Capital markets regulator Sebi has allowed mutual funds with active Equity-Linked Savings Schemes (ELSS) to launch passive schemes, a move that will provide a cost-effective and tax-saving alternative to individual investors. The investments under the ELSS scheme have a ______ lock-in period, which is the shortest lock-in period as compared to other tax-efficient products-
(a) One-month
(b) Three-month
(c) One-year
(d) Two-year
(e) Three- year
Q2. NBFCs are required to maintain a minimum capital ratio of not less than ______ of aggregate risk-weighted assets (including both on and off- balance sheet exposures)-
(a) 10%
(b) 12%
(c) 15%
(d) 20%
(e) 25%
Q3. The net stable funding ratio is a liquidity standard requiring banks to hold enough stable funding to cover the duration of their long-term assets. The minimum NSFR requirement is-
(a) 100%
(b) 75%
(c) 50%
(d) 25%
(e) 15%
Q4. Capital markets regulator Sebi tweaked the Offer for Sale (OFS) framework to provide more flexibility to promoters and large shareholders planning to sell their shares through the mechanism. Identify Incorrect statement regarding the framework-
(i) Under the revised framework, the cooling-off period required between two OFS has been reduced to 2 weeks from 14 weeks.
(ii) The new framework would come into force from February 10, 2023.
(iii) he minimum offer size should be at least Rs 25 crore for selling shares through the OFS mechanism by shareholders.(a) All (i), (ii) & (iii)
(b) Both (i) & (ii)
(c) Only (i)
(d) Only (iii)
(e) None of the above
Q5. NPCI has instructed members of the UPI ecosystem to allow non-resident account types such as NRE/NRO accounts having international mobile numbers to get on boarded and transact through UPI. Interest earned on an NRO account is taxable at-
(a) 10%
(b) 20%
(c) 30%
(d) 40%
(e) 50%
Q6. Identify correct statement regarding Wholesale Price Index (WPI)-
(i) It measures average change in prices of commodities at the wholesale level.
(ii) It is Published by: Office of Economic Advisor (Ministry of Commerce).
(iii) Base Year:2008-09.
(a) All (i), (ii) & (iii)
(b) Both (i) & (ii)
(c) Only (i)
(d) Only (iii)
(e) None of the above
Q7. Which bank has bagged the Best Small Bank award in the Best Banks survey for the year 2022. The Best Banks survey was conducted by Business Today- KPMG (BT-KPMG Best Banks Survey)?
(a) Nainital bank
(b) RBL Bank
(c) South Indian Bank
(d) Tamilnad Mercantile Bank Limited
(e) Karur Vysya Bank
Q8. AU Small Finance Bank, India’s largest Small Finance Bank, announced the launch of a first-of-its-kind platform in the credit card industry. With this platform, AU Bank will provide an opportunity to other bank Credit Cardholders to upgrade their card to one of AU Credit Cards. Identify correct name of the platform from the options given below-
(a) SwipeUp
(b) Swipedown
(c) Swipeleft
(d) Swiperight
(e) Swipe
Q9. Which payments bank has received final approval from the Reserve Bank of India to operate as a Bharat Bill Payment Operating Unit (BBPOU)?
(a) Paytm Payments Bank
(b) India Post Payment Bank
(c) Jio Post Payment Bank
(d) Airtel Post Payment Bank
(e) None of the above
Q10. Which state-owned bank offers credit cards against Fixed Deposit to customers who don’t meet the eligibility criteria for regular credit cards?
(a) HDFC Bank
(b) Canara Bank
(c) Punjab National Bank
(d) Federal Bank
(e) Bank of Baroda

Solutions

S1. Ans. (e)
Sol. The investments under the ELSS scheme have a three-year lock-in period, which is the shortest lock-in period as compared to other tax-efficient products.
Important Details-

• The regulator has also specified the procedure for launching a passive ELSS scheme by a mutual fund house, which already has an actively-managed ELSS scheme.
• Under the procedure, Sebi said that the fund house will have to stop all fresh inflows or subscriptions, including systematic investment plans (SIPs) and systematic transfer plans (STPs), to the actively managed ELSS scheme.
• This needs to be done after a written communication about the proposed change, along with reasons and benefit.
• Besides, AMCs will provide an option to investors to redeem their units without exit load subject to lock-in requirements.
• Further, AMCs would have to give an advertisement about the closure of the existing actively managed scheme in a newspaper.
• After completion of three years from the date of stopping inflows in the actively managed ELSS scheme, Sebi said the scheme will be merged with the passively managed ELSS scheme and the investments would be managed through the passively managed scheme.
  About Equity-Linked Savings Schemes (ELSS)-

• The investments under the ELSS scheme have a three-year lock-in period, which is the shortest lock-in period as compared to other tax-efficient products.
• Furthermore, investors can also get a tax deduction of up to Rs 1.5 lakh per financial year under Section 80C of the IT Act.
• The passive ELSS are much cheaper with a lower expense ratio as compared to the active ones.
• Along with the tax benefit, a lower expense ratio is something wherein investors will get directly benefited, and they will be able to save more money.
  S2. Ans. (c)
  Sol. NBFCs are required to maintain a minimum capital ratio of not less than 15 % of aggregate risk-weighted assets (including both on and off- balance sheet exposures).
  S3. Ans. (a)
  Sol. NSFR requires banks to fund their activities with stable sources of finance (reliable over the one-year horizon). The minimum NSFR requirement is 100%.
  S4. Ans. (c)
  Sol. Only (i) is Incorrect.
  Important Details-
• Under the revised framework, the cooling-off period required between two OFS has been reduced to 2 weeks from 12 weeks.
• Besides, retail investors have been allowed to bid for the unsubscribed portion of the non-retail segment, and unit holders of listed Real Estate Investment Trusts (REITs) nd Infrastructure Investment Trusts (InvITs) have been allowed to offer their holdings through the OFS mechanism.
• The new framework would come into force from February 10.
• In a circular, Sebi said the minimum offer size should be at least Rs 25 crore for selling shares through the OFS mechanism by shareholders.
• however, offer size can be less than Rs 25 crore by promoter (s) or promoter group entities so as to achieve minimum public shareholding in a single tranche.
• The OFS mechanism is available to companies with a market capitalization of Rs 1,000 crore and above.
  S5. Ans. (c)
  Sol. Interest earned on an NRO account is taxable at 30%.
  Important Details-

• The National Payments Corporation of India (NPCI) has instructed members of the Unified Payments Interface (UPI) ecosystem to allow non-resident account types such as non-resident external (NRE)/ non-resident ordinary (NRO) accounts having international mobile numbers to get on boarded and transact through UPI.
• To begin with, NPCI will be enabling transactions from mobile numbers having country codes of Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, United Arab Emirates, and the United Kingdom, along with the current domestic country code.
• The government body has asked UPI participants, such as Paytm, Google Pay, and more to put in place a mechanism by April 30.
  About Non-Resident External (NRE) Account-
• Rupee-denominated account that NRIs can open in India to deposit/ transfer their foreign currency earnings.
• NRE accounts are exempt from tax.
• Advantage: ▪ High liquidity → allows full repatriation of funds from the account to the NRI’s country of residence when required.
  About Non-Resident Ordinary (NRO) Account:
• Rupee-denominated account that NRIs can open in India to manage their deposits or income earned in India such as dividends, pension, rent, etc.
• Interest earned on an NRO account is taxable at 30%
• Allows to receive funds in either Indian or foreign currency.
• However, only Indian currency can be used to withdraw from such account.
• Funds cannot be freely repatriated into foreign currency.
  S6. Ans. (b)
  Sol. Only (i) & (ii) are correct.
  Important Details-

• WPI measures average change in prices of commodities at the wholesale level.
• Published by: Office of Economic Advisor (Ministry of Commerce).
• It calculates inflation based on prices paid by Manufacturer and wholesaler.
• It measures goods only; services are not covered by it.
• Base Year:2011-12
• It monitors price drifts that reflect demand and supply in manufacturing, construction & industry.
  S7. Ans. (d)
  Sol. Tamilnad Mercantile Bank Limited (TMB) has bagged the Best Small Bank award in the Best Banks survey for the year 2022.
  Important Details-

• The Best Banks survey was conducted by Business Today- KPMG (BT-KPMG Best Banks Survey).
• The bank has won the Best Small Bank Award under the category of banks with a book size of less than Rs 1 Lakh crore.
  About Tamilnad Mercantile Bank Limited
• Tamilnad Mercantile Bank Limited (TMB) was founded in 1921 as the Nadar Bank, later it was changed to Tamilnad Mercantile Bank in 1962.
• TMB is one of the fastest-growing private sector banks continuously for five years from 2010 to 2015.
• It was also rated as the Best Bank in the years 2013, 2014, and 2015.
  S8. Ans. (a)
  Sol. AU Small Finance Bank, India’s largest Small Finance Bank, announced the launch of a first-of-its-kind platform in the credit card industry – the SwipeUp platform.
  Additional Info-
  The Credit Cards issued in SwipeUp platform are different from current Credit Cards offered by AU Small Finance Bank. While the new range of cards offer high value proposition to customers, the card plastic is biodegradable which is another step towards a better environment.
  About AU small finance bank-

• Headquarters: Jaipur, Rajasthan
• MD & CEO: Sanjay Agarwal
• Chairman: Raj Vikash Verma
  S9. Ans. (a)
  Sol. Paytm Payments Bank on Monday said it has received final approval from the Reserve Bank of India to operate as a Bharat Bill Payment Operating Unit (BBPOU).
  Additional Info-

• Paytm Payments Bank Limited (PPBL) has got the final approval from Reserve Bank of India (RBI) to operate as Bharat Bill Payment Operating Unit (BBPOU) under the Payment and Settlement Systems Act, 2007.
• As an entity under Bharat Bill Payment System (BBPS), our associate bank has got the final authorization to conduct bill payment and aggregation business as a BBPOU. PPBL had been undertaking this activity so far under in-principle authorization from RBI.
  S10. Ans. (c)
  Sol. State-owned Punjab National Bank (PNB) offers credit cards against Fixed Deposit to customers who don’t meet the eligibility criteria for regular credit cards.
  Additional Info-
• State-owned Punjab National Bank (PNB) offers credit cards against Fixed Deposit to customers who don’t meet the eligibility criteria for regular credit cards.
• This facility will be available for salary account customers, and they shall be able to apply through the mobile banking app PNB One, website or Internet Banking Service (IBS).