Banking Awareness Quiz With Explanation: Part 5

(1). Priority Sector Lendings include loans to
(a) Agriculture
(b) Micro and Small enterprises
(c) Poor people for housing
(d) All of the Above

(2). What Percentage of branches of a particular bank has to be opened in rural areas as mandated by RBI?
(a) 25 percent
(b) 30 percent
(c) 35 percent
(d) 40 percent

(6). When was RBI Nationalised in India?
(a) 1949
(b) 1935
(c) 1969
(d) 1950

(9). PFRDA is related to which of the following?
(a) National Pension Scheme(NPS)
(b) EPFO
(c) Insurance
(d) Mutual Funds

EXPLANATIONS

(1). Answer Key: (d)
Priority Sector Lending is an important role given by the Reserve Bank of India (RBI) to the banks for providing a specified portion of the bank lending to few specific sectors like agriculture and allied activities, micro and small enterprises, poor people for housing, students for education, etc.

(2). Answer Key: (a)
The main aim of RBI is to provide banking services to the last mile of the country .To full this initiative RBI has started financial inclusion program.In this RBI mandated all banks in India to open at least 25 percent branches in rural areas.

(3). Answer Key: (c)
RBI was initially established in Calcutta but was permanently moved to Mumbai in 1937.

(4). Answer Key: (b)
IRDA chairperson's tenure is for five years or until the age of 65 years.

(5). Answer Key: (d)
RBI ensure that adequate credit is provided to rural areas by priority sector lending In this RBI has mandated all banks including foreign banks working in India to provide 40 percent of their loans to priority sector like agriculture, student loans etc .If any bank found violating RBI policy ,it has the power to take action against it.

(6). Answer Key: (a)
RBI was established on 1 April 1935 with the sole aim to work as banking sector regulator. RBI was nationalised in 1949.RBI regulate the banking sector (government and private banks) by banking regulation act 1949 and RBI act 1935 which entrusted responsibility on the RBI to work for the enhancement of banking sector in India.

(7). Answer Key: (a)
The chairman of SEBI is appointed by the Appointments Committee of the Cabinet (ACC) of Government of India.

(8). Answer Key: (d)
The Banking Regulation Act, 1949, empowers NABARD to conduct an inspection of State Cooperative Banks (SCBs), Central Cooperative Banks (CCBs) and Regional Rural Banks (RRBs) and protect the 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.

(9). Answer Key: (a)
PFRDA is the regulatory body for all the pension funds in India.The Pension Fund Regulatory & Development Authority Act was passed on 19th September 2013.PFRDA regulate the pension sector and works for its development, formulate policies for pension sector.PFRDA is regulating NPS, subscribed by employees of Govt. of India, State Governments and by employees of private institutions/organisations & unorganised sectors.

(10). Answer Key: (b)
SEBI was enacted on April 12, 1992, in accordance with the provisions of the Securities and Exchange Board of India Act, 1992. The main aim of SEBI is to protect the interest of investor in securities.