RBI - General awareness questions on current affairs

1)   Who has been appointed part time chairman of Catholic Syrian Bank?

a. TS Anantharaman
b. TS Subramaniam
c. TS Anantdev
d. None of the above
Answer  Explanation 

ANSWER: TS Anantharaman

Explanation:
RBI has accorded approval for the appointment of TS Anatharaman as part time chairman of Catholic Syrian Bank.

He has been holding the position of non executive director of the bank since Aug 28, 2009.

Anatharaman is a senior CA with wide experience in practice, service, consulting, industry and teaching.

He has served with the UN for 7 years.

Anantharaman was President of Chamber of Commerce, Thrissur, Thrissur Management Association and numerous other institutions.

Currently, he is investment consultant and director of numerous companies and institutions


2)   RBI will create polymer based currency notes of which denomination?

a. INR 5
b. INR 10
c. INR 20
d. INR 25
Answer  Explanation 

ANSWER: INR 10

Explanation:
The Union Finance Ministry has given permission to the Reserve Bank of India to conduct field trials of plastic currency notes of INR 10 denomination.

These notes will be introduced in 5 cities across the country with diverse climatic and geographical conditions.

The procurement of the requisite plastic substrate material has been approved. Plastic INR 10 notes will now be printed.

Benefits of Plastic Currency Notes

  • Plastic currency notes were first used by Australia in 1988
  • Plastic notes are cleaner than paper and will last longer (around 5 years); these are difficult to counterfeit.
  • These notes are now used in more than 20 countries.
  • Notes were smaller and stronger than cotton based paper notes.
  • They have more security features making them harder to copy.


3)   Who replaced R. Gandhi as Deputy Governor of RBI?

a. BP Kanungo
b. SS Mundra
c. Viral V Acharya
d. None of the above
Answer  Explanation 

ANSWER: BP Kanungo

Explanation:
BP Kanungo on 10th March 2017 was appointed Deputy Governor in RBI for three years.

The ACC approved the appointment to the post with effect from the date of taking charge on or after April 3.

He has been appointed as deputy governor in place of R. Gandhi.

Kanungo was in March 2016 appointed ED of the Central Bank.

The ACC has named Dilip S. Shanghvi as the Member of RBI's Western Local Board.

The appointment of Shanghvi who is the promoter of Sun Pharma, is for a period of 4 years.

RBI: Know More

  • Headquarters: Mumbai, Maharashtra
  • Established: 1 April 1935
  • Governor: Urjit Patel
  • Central bank of India
  • Currency : Indian Rupee (₹)
  • Reserves: US$ 363.00 billion
  • Bank rate: 6.75%
  • Interest on reserves: 4.00%(market determined)
  • Website: rbi.org.in


4)   Who has been appointed as director on the RBI central board?

a. Ashok Gulati
b. Rajiv Kumar
c. Manish Sabharwal
d. All of the above
Answer  Explanation 

ANSWER: All of the above

Explanation:
GoI has appointed three directors on the all-powerful central board of RBI, which include two noted economists Ashok Gulati and Rajiv Kumar, for four years.

Besides Gulati and Kumar, the Appointments Committee of the Cabinet (ACC) has appointed Manish Sabharwal as a director.

Further, the ACC has also approved the proposal of the Department of Financial Services for appointment of three members on the local board of RBI.

Prasanna Kumar Mohanty (Southern Local Board), Vallabh Roopchand Bhanshali (Western) and Sunil Mitra (Eastern) have been appointed for four years.

The last board-level appointment by the government was made when it elevated N S Vishwanathan to the post of deputy governor in June.

Prior to that, in March, the government had nominated three non-official directors - Natarajan Chandrasekaran, Bharat Narotam Doshi and Sudhir Mankad - on the central board of the bank.

Manish Sabharwal is a businessman and entrepreneur, who is currently the chairman of Teamlease, which he co-founded.

Prior to this, he also co-founded India Life, a human resource outsourcing company.

Mr. Kumar is a senior fellow at the Centre for Policy Research and has authored several books on India’s economy.

He is also currently chancellor of the Gokhale Institute of Economics and Politics in Pune.

He is also the founding director of Pahle India Foundation, a non-profit research organisation.

Mr. Gulati is currently the Infosys Chair Professor for Agriculture at the Indian Council for Research on International Economic Relations (ICRIER).

Prior to that, he was the chairman of the Commission for Agricultural Costs and Prices (CACP), the body responsible for recommending Minimum Support Prices (MSPs) of agri-commodities to the government.

In addition to this, the Cabinet also approved the proposal by the Department of Financial Services for appointment of three members on the local board of the RBI.

RBI Board of Directors: Know More

  • The RBI's affairs are governed by the central board of directors.
  • The board is appointed by the government.
  • The central board comprises the governor, deputy governors, 10 directors from various fields, two government officials and one each from the four local boards.
  • As per the RBI website, besides the governor and deputy governors, there are six directors on the central board.
  • These are Nachiket Mor, Natarajan Chandrasekaran, Bharat Narotam Doshi, Sudhir Mankad, Shaktikanta Das and Anjuly Chib Duggal.


5)   In Monetary Review on 8th Feb 2017, RBI has kept repo rate _________

a. Unchanged
b. Changed to 7.25%
c. Changed to 8.25%
d. None of the above
Answer  Explanation 

ANSWER: Unchanged

Explanation:
The Reserve Bank of India (RBI) has kept the repo rate unchanged at 6.25% in its monetary policy review on 8th Feb 2017.

It was citing inflation concerns after the first quarter of the next financial year, once the base effect vanishes.

The RBI said all the six members of the monetary policy committee voted in favour of the decision.

“ Favourable base effects and lagged effects of demand compression may mute headline inflation in Q1 of 2017-18,” the central bank said in a statement.

“Thereafter, it is expected to pick up momentum, especially as growth picks up and the output gap narrows. Moreover, base effects will reverse and turn adverse during Q3 and Q4 of 2017-18,” the RBI added.

Now, the RBI has projected inflation in the range of 4.0 to 4.5% in the first half of the financial year and in the range of 4.5 to 5.0% in the second half.

The central bank cited ‘three significant upside risks’ that impart some uncertainty to the baseline inflation path -

  • The hardening profile of international crude prices;
  • Volatility in the exchange rate on account of global financial market developments, and the
  • Fuller effects of the house rent allowances under the 7th Central Pay Commission (CPC) award.
At the same time, the RBI lauded the Central government for its effort in maintaining fiscal discipline that could have a favourable impact on inflation.

Monetary Policy Review
  • Repo rate under the liquidity adjustment facility (LAF): Unchanged at 6.25 percent.
  • Reverse repo rate under the LAF: Unchanged at 5.75 per cent.
  • Marginal standing facility (MSF): Unchanged at 6.75 per cent.
  • Bank Rate: Unchanged at 6.75 per cent.
  • Reserve Ratios Cash Reserve Ratio (CRR) of scheduled banks: Unchanged at 4.0 per cent of net demand and time liability (NDTL).
  • Statutory Liquidity Ratio (SLR): Unchanged 20.75 per cent.


6)   RBI has restricted Indian entities from making investments in non cooperative countries and territories as per _________

a. FATF
b. FADF
c. FACF
d. None of the above
Answer  Explanation 

ANSWER: FATF

Explanation:
Reserve Bank has prohibited Indian entities from making direct investments in any entity located in ‘non co-operative countries and territories.’

This is as identified by the inter-governmental body FATF.

The Financial Action Task Force (FATF) currently comprises two regional organisations and 35 member jurisdictions, including India, US, UK, China and the European Commission.

FATF was established in 1989.

Its objectives are to set standards and promote effective implementation of legal, regulatory and operational measures for combating money laundering, terrorist financing and other related threats to the integrity of the international financial system.

FATF: Know More

  • Abbreviation: FATF
  • Formation: 1989
  • Type: Intergovernmental organization
  • Purpose: Combat money laundering and terrorism financing
  • Headquarters: Paris, France
  • Region served: Worldwide
  • Membership: 36
  • Official language: English, French
  • President: Roger Wilkins


7)   Who is the new ED of the RBI w.e.f. 2nd Jan 2016?

a. Surekha Marandi
b. US Paliwal
c. G Mahalingam
d. KK Vohra
Answer  Explanation 

ANSWER: Surekha Marandi

Explanation:
Reserve Bank of India has appointed Smt. Surekha Marandi as the ED in place of US Paliway who retired on Dec 31, the bank announced on 3rd Jan 2016.

RBI handed over charge to Marandi who assumed office on 2nd Jan 2016. She will look afterConsumer Education and Protection Department, Financial Inclusion and Development Department, and Secretary's Department, as per an RBI release.

Previous posts held by Marandi include serving on Boards of United Bank and Bank of Baroda.

Prior to being promoted as ED, Marandi was Principal Chief General Manager and Chief Vigilance Officer in the Reserve Bank.

She has, over a span of three decades, served in regulatory and supervisory, financial inclusion and development and human resource management areas in the Reserve Bank.

Know More About Surekha Marandi

  • Surekha Marandi started her career with the RBI in May 1983 and has over 30 years of banking experience.
  • She has been working for various offices at the RBI, including departments of supervision, management services, information technology, human resources management, rural planning and credit.
  • Along with holding many positions in various capacities such as Banking Ombudsman, Maharashtra and Goa, she has been associated with various committees.
  • These are including committees on customer service, financial inclusion and education, financial stability and financial sector planning for the state of Chhattisgarh.
  • She has been a Non Executive Director of Bank of Baroda since June 10, 2014.
  • She served as a Nominee Director of United Bank of India from July 30, 2010 to March 13, 2014.
Marandi holds a Master's Degree in Arts from the Jadavpur University in Kolkata, West Bengal. She has trained at several foreign universities as well.


8)   Who is RBI's youngest deputy governor?

a. R. Gandhi
b. Viral V Acharya
c. Raghuram Rajan
d. None of the above
Answer  Explanation 

ANSWER: Viral V Acharya

Explanation:
Viral V. Acharya was on 26th Dec 2016 made the Deputy Governor of Reserve Bank of India (RBI). He is a professor of economics at New York University.

He will be joining the ranks of Vishwanathan, S S Mundra, R Gandhi as one of four Deputy Governors of RBI.

He will be serving under RBI Governor Urjit Patel.

He has served as the CV Starr Professor of Economics at the New York University Stern School of Business since 2008.

He has researched regulation of banks and financial institution, credit risk, corporate debt and asset pricing.

He has a lot of experience in the field of global finance.

In 2015, Acharya co-authored a research paper that analysed the precarious condition of public sector banks in India.

He was also on the International Advisory Board of Securities and Exchange Board of India.

He was the recipient of numerous awards including the Rising Star in Finance Award.


9)   RBI has opposed which move of the Watal Committee?

a. Digital payments
b. Separate entity to regulate payments and settlements
c. Cashless transactions
d. None of the above
Answer  Explanation 

ANSWER: Separate entity to regulate payments and settlements

Explanation:
The Reserve Bank of India (RBI) has opposed a move to establish a separate entity to regulate payments and settlements as recommended by Ratan Watal Committee for Digital Payments.

The 11-member committee was formed in September 2016 by the Union Finance Ministry to review existing payment systems in country and recommend appropriate measures for encouraging Digital Payments.

One of the committee’s terms of reference was to study and recommend changes in the regulatory mechanism under various acts such as the RBI Act, Payments and Settlement Act, and the Information Technology Act among others.

Based on this, the committee had recommended making regulation of retail payments independent from the function of RBI to give digital payments boost.

It called for establishing separate Payments Regulatory Board (PRB) as an independent body for retail payments and suggested that RBI’s regulation must be kept only for SIPS (systemically important payment system).

According to RBI, the global practice is that both the SIPS and retail payment systems are under the central bank for a variety of reasons including issues of inter-connectivity between the systems and the role of the central bank as the lender of last resort (LOLR).

RBI has suggested a monetary-policy-committee-style structure for the PRB, where outcomes are decided independently, but implementation remains with the banking regulator.


10)   Government will amend the RBI Act to extinguish the validity of which notes?

a. INR 2000
b. INR 1000
c. INR 500
d. Only b and c
e. All the above
Answer  Explanation 

ANSWER: Only b and c

Explanation:
Government is likely to amend the Reserve Bank of India Act to extinguish the validity of INR 500 and 1000 printed before November 9 and a reference to this effect would be made in the upcoming Budget.

As part of the demonetisation process, there would be a law to make these notes invalid and it can be made effective from March 31, sources said.

In 1978, when the currency was banned, the law to annul the validity came ahead.

This time the government acted under 26 (2).

As per RBI Act Section 26 (2), the central government, on the recommendation of the Central Board of RBI, may by notification in the Gazette of India, declare that, with effect from such date as may be specified in the notification, any series of bank notes of any denomination shall cease to be legal tender.

Banks have received Rs. 12 lakh crore demonetised currency notes as against Rs. 15.5 lakh crore. The government expects Rs. 13 lakh crore to come back to banking system.

Higher dividend from the RBI due to cancellation of INR 500/1000 may not be applicable until the RBI law is amended.

RBI has issued currency notes worth over Rs. 4.27 lakh crore to public through banks and ATMs following the demonetisation of old high value bills.


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