Banking Awareness Questions for IBPS RRB PO and Clerk | 7th August 2018

Dear Aspirants,

Banking Awareness for IBPS RRB PO and Clerk 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. In which year, The Clearing Corporation of India Limited (CCIL) was set up?

December 1995

April 2001

October 1999

January 2003

June 2005

Solution:

The Clearing Corporation of India Ltd. (CCIL) was set up in April, 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets. The introduction of guaranteed clearing and settlement led to significant improvement in the market efficiency, transparency, liquidity and risk management/measurement practices in these market along with added benefits like reduced settlement and operational risk, savings on settlement costs, etc.

Q2. CBLO is a money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of a loan. CBLO stands for-

Central Borrowing and Lending Obligation

Collateralized Borrowing and Lending Organisation

Collateralized Borrowing and Lease Obligation

Collateralized Banking and Lending Obligation

Collateralized Borrowing and Lending Obligation

Solution:

A collateralized borrowing and lending obligation (CBLO) is a money market instrument that represents an obligation between a borrower and a lender as to the terms and conditions of a loan.

Q3. AIIB is a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond. AIIB commenced operations in-

January 2014

January 2015

January 2016

January 2017

January 2018

Solution:

Asian Infrastructure Investment Bank (AIIB), a multilateral development bank with a mission to improve social and economic outcomes in Asia and beyond. Headquartered in Beijing, AIIB has commenced operations in January 2016 and have now grown to 87 approved members from around the world.

Q4. Who is the non-executive chairperson of CCIL?

Usha Thorat

R Sridharan

Bhavesh Zaveri

MS Sundara Rajan

Sudhir Joshi

Solution:

Usha Thorat is the non-executive chairperson of CCIL.

Q5. Which Organisation has approved a USD250 million loan to improve irrigation services and management accountability in Indonesia recently?

IMF

ADB

SEBI

AIIB

World Bank

Solution:

The Board of Directors of the Asian Infrastructure Investment Bank (AIIB) has approved a USD250 million loan to improve irrigation services and management accountability in Indonesia. The project, cofinanced with the World Bank, aims to rehabilitate, revitalize and modernize water resources and irrigation systems in Indonesia. It also seeks to strengthen irrigation institutions and management and improve the operation and maintenance of these systems.

Q6. Which organisation has been given the sole privilege to operate Pradhan Mantri Vaya Vandana Yojana?

TRAI

IRDAI

SEBI

LIC of India

State Bank of India

Solution:

LIC of India has been given the sole privilege to operate Pradhan Mantri Vaya Vandana Yojana.

Q7. Government of India in the Budget Speech of 2018-19 has announced the enhancement of maximum limit under Pradhan Mantri Vaya Vandana Yojana to ________________ per senior citizen.

Rs. 15 lakhs

Rs. 10 lakhs

Rs. 25 lakhs

Rs. 20 lakhs

Rs. 30 lakhs

Solution:

Government of India in the Budget Speech of 2018-19 has announced the enhancement of maximum limit under Pradhan Mantri Vaya Vandana Yojana to Rs. 15 lakhs per senior citizen. The period of sale for this scheme has also been extended upto 31st March, 2020.

Q8. In which of the following year Liberalised Remittance Scheme (LRS) was introduced?

2012

2008

2004

2006

2016

Solution:

Under the Liberalised Remittance Scheme, all resident individuals, including minors, are allowed to freely remit up to USD 2,50,000 per financial year (April – March) for any permissible current or capital account transaction or a combination of both. Further, resident individuals can avail of foreign exchange facility for the purposes mentioned in Para 1 of Schedule III of FEM (CAT) Amendment Rules 2015, dated May 26, 2015, within the limit of USD 2,50,000 only. The Scheme was introduced on February 4, 2004, with a limit of USD 25,000. The LRS limit has been revised in stages consistent with prevailing macro and micro economic conditions.

Q9. What is the full form of LSR in Banking and Finance?

Liquidity Service Ratio

Liquidity System Ratio

Liquidity Stress Ranking

Liquidity Stress Rate

Liquidity Stress Ratio

Solution:

LST stands for Liquidity Stress Ratio.

Q10. Under the Liberalised Remittance Scheme (LRS), all resident individuals, including minors, are allowed to freely remit up to _________________ per financial year.

USD 1,50,000

USD 2,50,000

USD 1,00,000

USD 5,50,000

USD 10,00,000

Solution:

Q11. PFMS is a Central Plan Scheme monitoring system of the department of expenditure Ministry of Finance, Government of India. PFMS stands for-

Public Financial Management Sending

Public Financial Management Society

Public Financial Management System

Public Financial Management Service

Public Financial Management Scheme

Solution:

Public Financial Management System (PFMS) is a Central Plan Scheme monitoring system, of the department of expenditure, Ministry of Finance, Govt. of India.

Q12. SEBI was set up with the main purpose of keeping a check on malpractices and protect the interest of investors. What is the objectives of SEBI?

To regulate the activities of stock exchange.

To protect the rights of investors and ensuring safety to their investment.

To prevent fraudulent and malpractices by having balance between self regulation of business and its statutory regulations.

To regulate and develop a code of conduct for intermediaries such as brokers, underwriters, etc.

All of the above

Solution:

The overall objectives of SEBI are to protect the interest of investors and to promote the development of stock exchange and to regulate the activities of stock market. The objectives of SEBI are: 1. To regulate the activities of stock exchange. 2. To protect the rights of investors and ensuring safety to their investment. 3. To prevent fraudulent and malpractices by having balance between self regulation of business and its statutory regulations. 4. To regulate and develop a code of conduct for intermediaries such as brokers, underwriters, etc.

Q13. The NSFR will require banks to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities. NSFR stands for-

Net Stable Funding Rate

Net Stable Funding Ratio

Net Stable Financial Ratio

Net System Funding Ratio

Net Service Funding Ratio

Solution:

The Net Stable Funding Ratio or NSFR will require banks to maintain a stable funding profile in relation to the composition of their assets and off-balance sheet activities.

Q14. All Regional Rural Banks or RRBs are, therefore, advised to achieve and maintain a minimum CRAR of ______ on an ongoing basis.

15%

11%

Solution:

The Reserve Bank of India (RBI) has directed all regional rural banks to follow the minimum 9% capital adequacy, marking the end of their transitory phase.

Q15. Bharat QR Code, the latest initiative to boost digital transactions, will make use of QR codes system for payments across merchant outlets. Bharat QR was launched with much fanfare by-

NPCI

FICCI

RBI

SEBI

IRDAI

Solution:

Bharat QR was launched with much fanfare by NPCI.