General Awareness Quiz on Payment Banks & Small Finance Banks- 9th December 2020

Q1.What is/are the main objectives of payments bank?
(a)Providing interest free loans
(b)Financial Inclusion
(c)Providing Free education to girls
(d)Financial assistance to Farmers
(e)All of the above

Q2.The promoter’s minimum initial contribution to the paid-up equity capital of payments bank shall at least be 40 per cent for the first_______years from the commencement of its business.-
(a)Two
(b)Three
(c)Four
(d)Five
(e)Six

Q3.The minimum paid-up equity capital for small finance banks shall be-
(a)Rs. 100 crore
(b)Rs. 125 crore
(c)Rs 75 crore
(d)Rs 50 crore
(e)Rs 25 crore

Q4.What can Payment Banks do?
(a)Offer internet banking, sell mutual funds, insurance and pensions
(b)Have business correspondents and ATMs
(c)Offer bill payment service for customers
(d)They can enable transfers and remittances from a mobile phone
(e)All of the above

Q5.What Payment Banks can’t do?
(a)They can provide forex cards to travellers, usable as debit or ATM card all over India
(b)Offer bill payment service for customers
(c)Extend loans
(d)They can offer forex services at charges lower than bank
(e)Have business correspondents and ATMs

Q6.What is/are Features of Small Finance Banks?
(a)The SFBs require a minimum capital requirement of ₹ 100 Cr
(b)It is mandatory for Small Finance Banks to set up at least 40 percent of its branches in the unbanked remote and rural areas
(c)The Small Finance Banks are subjected to follow the rules and regulations set by the RBI
(d)Only (a) & (c)
(e)Only (b) & (c)

Q7.Small Finance Banks can offer Which type of loan?
(a)Personal loans
(b)Housing loans
(c)Consumer loans
(d)Auto loans
(e)All of the above

Q8.Payment Banks can Accept deposits but customer balance should not exceed-
(a)Rs. 10,000
(b)Rs. 50,000
(c)Rs. 75000
(d)Rs.1 Lakh
(e)Rs. 1.5 Lakh

Q9.On the recommendations of which committee payments bank were established?
(a)Basel Committee
(b)Damodaran Committee
(c)C Rangarajan committee
(d)Raghuram Rajan Committee
(e)Dr. Nachiket Mor Committee

Q10.How much percent FDI is allowed in Payments bank?
(a)74%
(b)48%
(c)66%
(d)54%
(e)36%

Q11.Currently, there are ______ payment banks operating in India which were initially 11-
(a)4
(b)6
(c)8
(d)10
(e)12

Q12.The small bank shall be registered as a public limited company under the-
(a)Companies Act, 2013
(b)RBI Act 1934
(c)Banking Regulation Act 1949
(d)Negotiable Instruments act 1881
(e)None of the above

Q13.On the recommendations of which committee Small finance banks were established?
(a)Basel Committee
(b)Usha Thorat Committee
(c)C Rangarajan committee
(d)Raghuram Rajan Committee
(e)Dr. Nachiket Mor Committee

Q14.Resident individuals with how many years of experience in banking and finance, companies and Societies are eligible as promoters to set up small banks?
(a)5 years
(b)6 years
(c)8 years
(d)10 years
(e)15 years

Q15.What is the Tagline of Equitas Small Finance Bank?
(a)Chalo Aage Badhe
(b)Joy Of Banking
(c)It’s Fun Banking
(d)Likho Apni Kahani
(e)We believe in your belief

Solutions

S1.Ans.(b)
Sol.The objectives of setting up of payments banks will be to further financial inclusion by providing (1) small savings accounts (2) payments/remittance services to migrant labour workforce, low-income households, small businesses, other unorganised sector entities and other user.

S2.Ans.(d)
Sol.The promoter’s minimum initial contribution to the paid-up equity capital of payments bank shall at least be 40 per cent for the first five years from the commencement of its business.

S3.Ans.(a)
Sol.The minimum paid-up equity capital for small finance banks shall be Rs. 100 crore.

S4.Ans.(e)
Sol.All of the above

S5.Ans.(c)
Sol.Payment Banks can’t-
1-Offer credit cards
2-Extend loans
3-Handle cross-border remittances
4-Accept NRI deposits

S6.Ans.(d)
Sol.Features of Small Finance Banks are-
(a)The SFBs require a minimum capital requirement of ₹ 100 Cr
(b)It is mandatory for Small Finance Banks to set up at least 25 percent of its branches in the unbanked remote and rural areas
(c)The Small Finance Banks are subjected to follow the rules and regulations set by the RBI

S7.Ans.(e)
Sol.Small Finance Banks do offer loans like commercial Banks, such as personal loans, housing loans, consumer loans, and auto loans.

S8.Ans.(d)
Sol.Payment Banks can Accept deposits but customer balance should not exceed Rs.1 Lakh.

S9.Ans.(e)
Sol.A committee headed by Dr. Nachiket Mor recommended setting up of ‘Payments Bank’ to cater to the lower income groups and small businesses.

S10.Ans.(a)
Sol..FDI of 74% allowed in payments Bank.

S11.Ans.(b)
Sol.Currently, there are 6 payment banks operating in India which were initially 11.

S12.Ans.(a)
Sol.The small bank shall be registered as a public limited company under the Companies Act, 2013.

S13.Ans.(b)
Sol.On the recommendations of Usha Thorat Committee Small finance banks were established.

S14.Ans.(d)
Sol.Resident individuals with 10 years of experience in banking and finance, companies and Societies will be eligible as promoters to set up small banks.

S15.Ans.(c)
Sol.The Tagline of Equitas Small Finance Bank is “It’s Fun Banking”.

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