Banking Awareness for Upcoming Exams

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Banking Awareness

Banking Awareness for upcoming bank exams. This will prove immensely useful to you.

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Banking Awareness: Top 15 Bank Exams of 2017

Name of Exam Exam Month (2017)
IBPS Specialist Officer (SO) January 
IPPB January
IDBI Executive January
Indian Bank PO January
NABARD Grade ‘A’ & ‘B’ May
SBI PO April
SBI Clerk July
RBI Grade ‘B’ September
Bank of Baroda PO October
IBPS PO November
IBPS RRB Officer Scale 1 November
NABARD Development Assistant November
IBPS RRB Office Assistant November
IBPS Clerk December
RBI Assistant December

Banking Awareness: An Introduction

Banking awareness is all about the banking system. A banking system is a network or group of institutions that provide financial services for the people. These institutions are responsible for operating a payment system, providing loans, taking deposits, and helping with investments. Exact history of this lending system is unknown, but some historians trace back the indigenous banking system to the vedic times of 2000 to 1400 BC. Later during the colonial period, the banking system modernised with the European financial systems and establishment of RBI as central bank to control the banking system in India.

Banking Awareness: Importance in all major bank exams

For all the major bank exams such as IBPS-PO, Clerk, SBI-PO, Clerk and so many other private banking exams, the banking awareness section plays a game changer role. In this article we are trying to provide all the information from banking history to current affairs, financial to banking awareness, previously asked to most expected topics, to help aspirants in preparation for all upcoming competitive exams

Banking Awareness: ‘Must Read’ Study Notes

  • History of Banking system in India
  • Indian financial systems and money market
  • Indian financial systems and capital market
  • Public finance
  • National income
  • Inflation and deflation
  • External trade and Capital
  • World Trade Organisation
  • Important banking terms

 

History of Banking in India

The first known bank of India is Hindustan Bank and is established in Calcutta in the year of 1770 under European Management and it is liquidated in 1830-32. Later three presidency banks started in Calcutta(1806), Madras(1840) and Bombay(1843) as Bank of Cacutta, Bank of Madras and Bank of Bombay respectively. In 1921, three presidency banks are amalgamated to form ‘Imperial Bank of India’ as a private entity. In the year of 1955, this Imperial Bank is nationalized and renamed as State Bank of India. Reserve Bank of India founded in 1st April 1935, on the basis of recommendations of Hilton Young Commission in accordance with the provisions of ‘Reserve Bank of India Act, 1934’ and was nationalized in 1st January, 1949.

Indian Financial system:

Financial system of India – an integral part of banking awareness, refers to the institutions of lending and borrowing of funds or demand for and the supply of the funds of all individuals, institutions and companies, and of the government. It broadly categorized as Money Market and Capital Market. Money market comprises of commercial banks, regional rural banks for dealing with the lending and borrowing of short term funds, where as Capital market comprises of Stock exchanges, financial development institutions to deal with lending and borrowing of medium and long term funds.

Reserve Bank of India: It regulates the banking sector(both public and private banks) by banking regulation act of 1949 and RBI act of 1935, head quartered in Mumbai. RBI is the sole authority to issue banking licenses to entities who want to open new bank in India. RBI is headed by Governor and the post is currently held by Mr. Urjit Patel and there are 4 deputy governors. RBI has 4 zonal offices in Mumbai, Chennai, Delhi and Kolkata. It has 19 regional offices and 11 sub offices.

Functions of RBI: (Very important part of banking awareness)

  • Bank of issue of currency
  • Financial supervision
  • Banker and debt manager to government
  • Bankers bank
  • Custodian and manager of foreign exchange
  • Controller of credit

As a controller of credit, RBI controls the lending and deposit creating capacity of banks and these controls results in the control of money supply. It is essential to control inflation and thereby promotes the economic growth. There are two types of methods of credit control, viz, Quantitative measures and Qualitative measures.

Quantitative measures of credit control: These measures does not discriminate between the different sectors and applicable for the whole of the economy. All the measures of quantitative credit control explained below.

  1. Bank rate policy: The bank rate or discount rate is the rate fixed by the central bank at which it re discounts first class bills of exchange and government securities held by commercial banks. By varying the bank rate, the RBI controls the credit. If it offers discounts at higher rate, the banks profit may be affected. So it will not approach RBI for discounting or it will charge higher discount rate for customer. So customer may not discounts his bill, so the money supply will be low. (Very Important for banking awareness)
  2. Open Market operations: It refers to the sale and purchase of securities, bonds and bills of government as well as private financial institutions by the central bank. If the central bank sells these instruments, banks and public will buy it and pay money to the central bank, so the money supply reduces. If the central banks buys these instruments from instrument holders, it will pay money to the latter, so the money supply is increased.(Very Important for banking awareness)
  3. Variable reserve ratio: In this method, the scheduled banks has to maintain some reserves to control the credit creation. There are two types of reserves: Cash Reserve Ratio(CRR) and Statutory Liquidity Ratio(SLR). CRR refers to the scheduled banks are required to keep certain percentage of their Net Time and Demand Deposits with RBI under RBI act of 1934 and SLR refers to scheduled banks are required to keep certain percentage of their Net Time and Demand Deposits in their vault itself as per Banking regulation act of 1949.( Important for banking awareness)
  4. Liquidity Adjustment Facility(LAF): It is a short term credit control measure to absorb excess liquidity. It has two instruments namely Repo rate(is the rate at which commercial banks borrow money from RBI) and Reverse repo rate(is the rate at which RBI borrow money from commercial banks). Through this Repo and Reverse repo rate variation, RBI controls the lending activity of commercial activities to its customers.(Very Important for banking awareness)
  5. Marginal Standing Facility(MSF): It is a overnight lending facility given to commercial banks by RBI.
  6. Market Stabilisation Scheme(MSS): MSS is a fiscal cum monetary instrument. It is a facility to control liquidity due to excess foreign exchange flow into the country.

Qualitative or Selective measure of credit control: Through this method RBI can control the credit flow to particular sector or to particular end use. As of now RBI is not using this method for control of credit.

Money Market:

Money market of India comprises both organised and unorganised sectors. The organised sector is characterised by registration, approval and licence from market regulators and the unorganised sector is devoid of all these aspects.

Organised Sector: It comprises both banking sectors and sub markets. Banking sector concerns with both deposits and lending activities, where as sub markets carries out the money transactions among the banks and generate necessary capital for banking sectors and commercial sectors.

Banking sector for Banking Awareness Section

Consists of

  1. Commercial Banks
    1. Public sector banks-State Bank groups and other nationalised banks
    2. Private banks- Indian and foreign banks
  2. Regional Rural Banks– set up by Public sector banks known as sponsor banks.
  3. Co-operative Banks-established by state laws, with the aim of funding agriculture and allied sectors

Commercial Banks: Regulated under the Banking Regulation Act of 1949. Consists of both Public and Private sector banks.

Public Sector Banks: PSBs are those banks in which the shareholding of more than 51% is with the government. All the PSBs are not started by govt, but some banks which were in the hands of private were nationalised and made PSBs. It consists of State bank of India & its 5 associate banks and other nationalised banks.

State Bank Group: Imperial Bank of India created in 1921, nationalised in 1955 and renamed as State Bank of India. In 1959, eight banks of former princely states were brought under SBI as its associates.

  1. State Bank of Bikaner
  2. State Bank of Jaipur
  3. State Bank of Hyderabad
  4. State Bank of Indore
  5. State Bank of Mysore
  6. State Bank of Saurashtra
  7. State Bank of Patiala
  8. State Bank of Travancore.

Among these State Bank of Bikaner and State Bank of Jaipur were merged to form State Bank of Bikaner and Jaipur. In 2008, State Bank of Saurashtra merged with State Bank of India. So now 6 associates banks are under SBI and the merging of all the associate banks with SBI is under process under the Finance Ministry.

Other Nationalised Banks: To make the banking facilities to available to all, private banks are nationalised in two stages, 1969 and 1980. In July 1969, 14 large commercial banks which had reserves more than Rs. 50 crores were nationalised. In April 1980, 6 more banks were nationalised, which had reserves Rs. 200 crores. In 1993 New Bank of India is merged with Punjab National Bank, so the total number of nationalized banks come down to 19. Now the total number of public sector commercial banks are 28. (1+6+19 and Bharatiya Mahila Bank). After Pakistan and Tanzania, India is the 3rd country in the world to start a bank with lending facility predominantly for women in 2013 as Bharatiya Mahila Bank with the initial capital of Rs. 1,000 crores. Smt. Usha Ananthasubramanian is the present Chairman and Managing Director of Bharatiya Mahila Bank.

Private Sector Banks: It consists of both Indian and Foreign private sector banks.

Indian Banks: Private sector Indian banks can be categorized as Old and New banks. Those banks which were set up before 1990s and continued to be in the hands of privates are old banks. Banks set up in the private sectors after 1990s are new banks.

Foreign Banks: After 1991 economic reforms, Indian economy is opened the door for foreign banks to set up either branches or subsidiaries. Ex: Citi Bank, Barclays, Standard Chartered etc.

Scheduled banks: Banks those listed in the second schedule of the RBI act of 1934 are called as scheduled banks. Banks listed in the second schedule has to fulfill the conditions of: paid up capital should not be less than Rs. 5 lakh and the activity of the bank should not adversely affect the interest of depositors. Scheduled banks are eligible for obtaining loans on bank rate from RBI and they get automatic membership of clearing house. And also these banks can avail the facility of rediscount of first class exchange bills from RBI.

Non-scheduled banks: Banks which are not listed in the second schedule called non scheduled banks. Like scheduled banks these banks also have to follow the conditions regarding CRR, but can keep it with itself. These banks are not eligible for loan from RBI but become eligible under emergency conditions.

The Regional Rural Banks(RRB): Established under RRBs Act 1976, to provide sufficient banking and credit facility for agriculture and rural sectors. RRBs set up on the recommendations of M. Narasimhan working group. These banks were set up by public sector banks as sponsor banks. RRBs were set up in all the states except Sikkim and Goa. RRBs were established to lend to weaker section called target group like landless labour, artisan and craftsmen an concessional rate. From 1997, RRBs were freed to lend outside the target group.

Co-operative Banks: Co-operative banks are established by state laws. These are established with the aim of funding agriculture and allied sectors and to finance village and cottage industries. NABARD is the apex body of co-operative banks in India.

NABARD: National Bank for Agriculture and Rural Development set up in 1982 by the act of Parliament, is an apex developmental bank in India, head quartered in Mumbai. The Banking Regulation Act, 1949, empowers NABARD to conduct inspection of State Cooperative Banks (SCBs), Central Cooperative Banks (CCBs) and Regional Rural Banks (RRBs) and protect interest of the present and future depositor and also provide short and medium term loan to those banks working in rural areas development. It provides his expertise in rural areas to RBI and GOI in making policies. The chairman of NABARD is appointed by GOI.The term of NABARD chairman is for three years. Present Chairman of NABARD – Dr. Harsh Kumar Bhanwala.

MUDRA Bank: Micro Units Development and Refinance Agency(MUDRA) Bank is a public sector financial institution, it provides loan at low rate to micro finance institutions and non banking financial institutions which then provide credit to MSMEs. It was launched in April 2015 with an initial capital of Rs. 20,000 crores.

SIDBI: Small Industries Development Bank of India(SIDBI) provides loans to set up the small-scale business unit or industry. SIDBI also finances, promotes and develops small-scale industries. Whereas IDBI (Industrial Development Bank of India) gives loans to big industries. It is headquartered in Lucknow.

IDBI: Industrial Development Bank of India(IDBI) is an Indian government-owned financial service company, headquartered in Mumbai, India. It was established in 1964 by an Act of Parliament to provide credit and other financial facilities for the development of the fledgling Indian industry. Established as a wholly owned subsidiary of RBI but in 1976 ownership of the IDBI is transferred to Govt of India.

Sub markets: Sub markets are markets to generate resources need to meet shortage of money for financial activities of government, financial institutions and industries. Based on the financial instruments used in the market, it is divided into various segments.

  1. Call money market-deals with loans for a period ranging from one to fourteen days. It is an interbank borrowig and lending market, the rate at which the funds borrowed is called as call money rate.
  2. Bill market-here short term bills are bought and sold.
    1. Commercial bills-are all bills other than treasury bills, issued by industries and tradesrs.
    2. Treasury bills-are securities issued by govt treasury, and are short term in nature.
  3. Certificate of Deposits(CDS)- are issued by Commercial banks and financial institutions to raise additional fund. These issued in multiples of Rs 25 lakh and subject to min amount of Rs 1 crore. Maturity period ranges from 3 months to one year in case of banks and one year to 3 years in the case of other financial institutions.
  4. Commercial papers- are introduced in 1990, and are issued by corporate, primary dealers and the all-India financial institutions to raise fund. Issued in denominations of Rs 5 lakh or multiples of it, subject to min of Rs 1 crore and the maturity period is 3-6 months.

Banking Schemes: Many schemes were launched in banking sector after nationalization of banks to enhance spread of banking services to all the regions of the country and to increase the banking culture among the people.

  1. Lead Bank Scheme: A public sector bank is selected in a district and designated as Lead bank of the district. It coordinates the activities of all banks in that district to avoid duplication of banking works, to ensure same person does not get loan from different banks, and to ensure the banking benefit to all sections of people.
  2. Service area approach(1988): Under lead bank scheme, each semi urban and rural branch allotted a specific are or village cluster to implement banking schemes.
  3. Different rate of interest scheme(1972): All the public sector banks are directed to grant at least 1% of their total deposits of previous year to weaker sections of society at a concessional rate of 4% and at least 40% loan under this scheme should be given to SC/ST people.
  4. Social banking: Financing for the poverty alleviation and employment generation progromme of govt by bank.
  5. Priority sector lending: Those sectors which substantially contribute to National income but get less credit from banking sector. List of priority sector is provided by RBI. 40 percent of Adjusted Net Bank Credit or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher; to be achieved in a phased manner by 2020 as per RBI guidelines. Priority sector lending target for RRBs is 60%.
  6. Financial inclusion: Financial inclusion is the delivery of financial services at affordable costs to vast sections of disadvantaged and low income groups. To achieve this RBI started ‘No-frill account’ drive. The banks were requested to open ‘No-frills account’ with low or minimum balance. PM Jan-Dhan Yojana (PMJDY) is National Mission for Financial Inclusion to ensure access to financial services, namely, Banking/ Savings & Deposit Accounts, Remittance, Credit, Insurance, Pension in an affordable manner.
  7. Promotion of Micro credit: Is the provision of credit and other financial services and products of very small amount to the poor in rural, semi-urban and urban areas for enabling them to raise their income levels and improve their living standards. The Self help group and bank linkage is a medium to promote micro credit.

Capital Market: It is a medium and a platform for long term funds. Institutions in the capital market are called as Non-Banking Financial Companies.

Capital markets can be classified as,

  1. Securities market-deals with shares, preference shares and debt instruments.
    1. Government Securities Market
    2. Industrial Securities Market
  2. Development financial institution-IDBI, IFCI, exim bank etc.
  3. Financial intermediaries-equipment leasing company, loan company etc.

SEBI: Securities and Exchange Board of India(SEBI) establised in 1988 for the development and regulation of securities market through a resolution of government. It was given statutory status in 1992 and head quartered in Mumbai. It has regional offices in Calcutta, Chennai and Delhi. The chairman of SEBI is appointed by GOI .The term of SEBI chairman is for three years. Present Chairman of SEBI is Upendra kumar Sinha. All transactions in the securities market in India are governed and regulated by SEBI. SEBI is also known as capital regulator or mutual funds regulator or market regulator. SEBI also created investors protection fund and SEBI is the only organization which regulates the credit rating agencies in India. (CRISIL and CIBIL). Its main functions are:

  • New issues (Initial Public Offering or IPO)
  • Listing agreement of companies with stock exchanges
  • Trading mechanisms 4. Investor protection
  • Corporate disclosure by listed companies etc.

Stock exchange: is an institution for orderly buying and selling of listed securities. Listed means the securities accepted to be traded in stock exchanges. The most prominent exchanges in India are National Stock Exchange(NSE) and Bombay Stock Exchange(BSE).

  1. National Stock exchange(NSE): Established in 1993 on the recommendation of Pherwani Committee. IDBI is the main promoter of NSE.
  2. Bombay Stock Exchange(BSE): It is Asia’s oldest stock exchange and established in 1887. Now it is demutulised to make public owned organisation.

Index: Stock Index is a numeric or statistical measurement, which shows the performance of an economy taking some key companies (a segment of stock market) as its indicator.

Sensex: stands for sensitive index and is an index of Bombay stock exchange. This measures the price movement of top 30 company shares and these 30 companies are called as Blue chip companies.

NIFTY: stands for National Index for fifty. Nifty and Nifty junior are indices of NSE. Nifty measures the price movement of top 50 companies and nifty junior is an index of next 50 top companies.

Public Finance: Deals with the resource mobilisation for and utilisation of the same to accomplish state activities at all levels viz, central, state and local governments.

General budget: is an annual financial statement or statement of accounts of government. It contains estimated receipts and expenditures for one year. Budget estimates are based on the previous two year estimates.

FRBM Act 2003: Fiscal Responsibility and Budget Management(FRBM) Act enacted in the year of 2003 with the purpose of correcting the fiscal imbalances like high revenue and fiscal deficit.

National Income: National income of a country is the total value of all final goods and services produced in the country in a particular period of time usually, one year. The growth of national income helps to know the progress of the country.

Measures of National income:

  • GDP
  • GNP
  • NNP
  • PI

Gross Domestic Product(GDP): Gross Domestic Product (GDP) is the total value of all final goods and services currently produced within the domestic territory of a country in a year.

GDP = Q x P

where, Q is total quantity of final goods and services produced in the country(both by Indians and Foreigners).

P is price of the final goods and services.

Gross National Product(GNP): is the total value of the total output or production of final goods and services produced by the nationals of a country(all residents and non-resident citizens of a country) during a given period of time, generally one year.

GNP = GDP + (X-M)

Where X is inward remittances of a country in respect of goods produced and services rendered by nationals of a country abroad.

M is outward remittances of a country from the goods produced and services rendered by foreign nationals of the country in domestic area.

Net National Product(NNP): NNP is arrived after deducting depreciation from gross national product. Depreciation means wear and tear of goods produced.

NNP = GNP –  Depreciation

Personal Income(PI): PI is the sum of all the income received by the entire people of the country in one year.

PI = National income + Net transfer payment.

Inflation: Inflation is, rise in general level of prices of goods and services in a economy over a period of time. The Wholesale Price Index (WPI) was main index for measurement of inflation in India till April 2014 when RBI adopted new Consumer Price Index (CPI) (combined) as the key measure of inflation.

Inflation = current period prce index – last period price index / last period price index * 100.

Weighted indices:

  1. Wholesale Price Index(WPI)
  2. Consumer Price Index for Industrial workers(CPI-IW)
  3. Consumer Price Index for Urban Non Manual Employees(CPI-UNME)
  4. Consumer Price Index for Agricultural labours(CPI-AL)
  5. Consumer Price Index for Rural Labours(CPI-RL)

Types of Inflation:

  1. Creeping inflation-price rise at very slow rate(less than 3%)
  2. Walking or Trotting inflation-price rise moderately at 3%-7%.
  3. Running inflation-price rise rapidly with rate of 10-20%
  4. Hyperinflation or Galloping inflation-price rise at very fast from 20-100%.

Deflation: is the opposite to that of inflation. The persistent and appreciable fall in the general level of price is called as deflation.

Balance of Payment: BoP of a country is a systematic record of all its economic transactions with the outside world in a given year. There are two main accounts in the BoP.

  1. Current Account-records exports and imports in goods, trade in services and transfer payments.
  2. Capital Account-records all international purchases and sales of assets such as money, stocks, bonds, etc. It includes foreign investments and loans.

Foreign Institutional Investment(FII): FII is the portfolio investment by foreign institutions like mutual funds, insurance companies, pension funds etc in shares and debentures.

Foreign Direct Investment(FDI): Investment through the mode other than the stock exchange is called FDI. The Foreign Direct Investment refers to the direct investment into the production and management. This can be one by either buying a company or by expanding operations of an existing business.

Foreign Exchange: Is the exchange of one currency for another or the conversion of one currency into another currency.

Exchange rate: Is the rate at which home currency is exchange for one unit of foreign currency.

Depreciation: Increase in the exchange rate i.e., fall in the external value of domestic currency because of more demand for foreign currency of more supply of domestic currency.

Appreciation: Fall in the exchange rate i.e., increase in the external value of domestic currency, due to more demand for home currency or less demand for foreign currency.

Devaluation: Reduction in the external value of home currency is called devaluation. It is aimed at increasing export of the country. It is usually resorted to correct the deficit in the balance of payment.

Purchasing Power Parity(PPP): PPP means the equality of buying capacity. Based on the buying capacity of respective currencies in their home country the exchange rate is determined.

Convertibility: Facility of exchanging domestic currency for foreign currency at market determined exchange rate without restriction on either rate or quantum of money exchanged is called convertibility.

World Trade Organisation(WTO):

  • WTO is an international organisation established to promoter multilateral trade among the countries. It is the successor to erstwhile GATT, and it came into force on Jan 1, 1995, under Uruguay round of negotiations.
  • Ministerial conference is the top decision making body of WTO. It meets once in 2 years. Trade and Commerce ministers of member countries form this council.
  • Second level body is the general council and it functions under ministerial conference. Ambassadors or representatives of member countries constitute this council. It also acts as Dispute settlement body and Trade policy review body.
  • It has 164 member countries, Afghanistan is the 164th country to become member state in Jul 2016.
  • Under WTO, a new round of negotiation started in 2001 and name as Doha round. It is still continuing and it covers whole range of issues from agriculture to e-commerce.

Banking Awareness: Taglines/Head quarters

S.No Bank Name Tagline Headquarters
1 Allahabad Bank A Tradition of Trust. Kolkata
2 Andhra Bank Where India Banks. Hyderabad
3 Axis Bank Badhti Ka naam Zindagi. Mumbai
4 Bank of America Higher Standards. Charlotte, USA
5 Bank of Baroda India’s International Bank. Vadodara
6 Bank of India Relationship beyond banking. Mumbai
7 Bhartiya Mahila Bank Empowering Women. New Delhi
8 Bank of Maharashtra One family one bank. Pune
9 BNP Paribas The Bank for the changing world. Paris
10 Canara Bank Together We Can. Bangalore
11 Central Bank of India “Central To you Since 1911”. Mumbai
12 CITI Bank The City never sleeps. New York, USA
13 Corporation Bank A Premier Public Sector Bank. Mangalore
14 Dhanlaxmi Bank Tann. Mann. Dhan Thrissur, Kerala
15 Dena Bank Trusted Family Bank. Mumbai
16 Deutsche Bank A Passion to perform. Frankfurt, Germany
17 ECGC Bank You focus on exports. We cover the risks. Mumbai
18 HDFC Bank We understand your world. Mumbai
19 HSBC The world’s local bank. London
20 ICICI Bank Hum Hai Na, Khyal Apka. Mumbai
21 IDBI Bank Banking For All, “Aao Sochein Bada”. Mumbai
22 Indian Bank Your Tech- Friendly Bank. Chennai
23 Indian Overseas Bank Good people to grow with. Chennai
24 J & K Bank Serving to Empower. Srinagar, J&K
25 Karnataka Bank Your Family Bank, Across India. Mangalore
26 Karur Vysya Bank Smart Way to Bank. Karur, Tamil Nadu
27 Kotak Mahindra Bank Let’s Make Money Simple. Mumbai
28 Lakshmi Vilas Bank The changing face of prosperity. Karur, Tamil Nadu
29 Punjab National Bank The name you can bank upon. New Delhi
30 Punjab & Sind Bank Where service is a way of life. New Delhi
31 Oriental Bank of Commerce Where every individual is committed. New Delhi
32 SBI With you all the way, Pure Banking Nothing Else, The Nation’s banks on us. Mumbai
33 South Indian Bank Experience next generation banking. Thrissur, Kerala
34 Standard Chartered Bank Your Right Partner. London
35 State Bank of Bikaner and Jaipur The Bank with a vision. Jaipur
36 State Bank of Hyderabad You can always bank on us. Hyderabad
37 State Bank of Mysore Working for a better tomorrow. Bangalore
38 State Bank of Patiala Blending Modernity with Tradition. Patiala
39 State Bank of Travancore A long Tradition of Trust. Thiruvananthapuram
40 Syndicate Bank Your Faithful And Friendly Financial Partner. Manipal(Karnataka)
41 UCO Bank Honours Your Trust. Kolkata
42 Union Bank of India Good People to Bank with. Mumbai
43 United Bank of India The Bank that begins with “U”. Kolkata
44 Vijaya Bank A friend you can bank on. Bangalore
45 Yes Bank Experience our Expertise. Mumbai

 

Banking Awareness Quiz

  1. _____________is the rate at which RBI lends money to commercial banks.
    (A) Repo Rate
    (B) Base Rate
    (C) Bank Rate
    (D) Reverse Repo Rate
    (E) None of these
    Answer: C
  2. A money deposited at a bank that cannot be withdrawn for a preset fixed period of time is also known as ________?
    (A) Savings Bank Deposit
    (B) Term Deposit
    (C) No frill Account
    (D) Current Deposit
    (E) None of these
    Answer: B
  3. Special drawing rights (SDRs) are international foreign exchange reserve assets issued by which of the following ?
    (A) IMF
    (B) ADB
    (C) WTO
    (D) RBI
    (E) World Bank
    Answer: A
  4. What does IFSC stand for ?
    (A) Indian Financial Systematic Code
    (B) Indian Financial Systematic Coding
    (C) Indian Financial System Code
    (D) Indian Finance System Code
    (E) Indian Finance System Coding
    Answer: C
  5. The Report on Currency and Finance is published by-
    (A) World Bank
    (B) Indian Bank Association
    (C) Bank for International Settlements
    (D) Reserve Bank of India
    (E) Ministry of Finance,Government of India
    Answer: D
  6. Which of the following is one of the measures of broad money ?
    (A) M0
    (B) M1
    (C) M2
    (D) M3
    (E) M4
    Answer: D
  7. Who is the custodian of national reserves of international currencies?
    (A) Finance Ministry
    (B) SBI
    (C) IDBI
    (D) RBI
    (E) None of these
    Answer: D
  8. Which one of the following is not a ‘Money Market Instrument’?
    (A) Certificate of Deposit
    (B) Commercial Paper
    (C) Treasury Bills
    (D) Equity Shares
    (E) None of these
    Answer: D
  9. Which of the following regulates the financial activities of the Non-Banking Financial Companies?
    (A) RBI
    (B) SEBI
    (C) SIDBI
    (D) Government of India
    (E) None of these
    Answer: A
  10. The headquarters of Kotak Mahindra Bank is located in ___________ ?
    (A) Allahabad
    (B) New Delhi
    (C) Baroda
    (D) Mumbai
    (E) Bengaluru
    Answer: D

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