Banking Awareness Questions for IBPS, SBI, RRB, RBI and Clerical exams - Set 8

ANSWER: Calcutta

Explanation:
Original headquarters of RBI were in Kolkata.

In 1937, it was shifted to Shahid Bhagat Singh Marg, Mumbai.

Following India's independence on 15 August 1947, the RBI was nationalized on 1 January 1949.

The Reserve Bank of India has zonal offices at Chennai, Delhi, Kolkata and Mumbai.

It has 19 regional offices and 10 sub-offices.

Regional offices are in Ahmedabad, Bangalore, Bhopal, Bhubaneswar, Chandigarh, Chennai, Delhi, Guwahati, Hyderabad, Jaipur, Jammu, Kanpur, Kochi, Kolkata, Lucknow, Mumbai, Nagpur, Patna and Thiruvananthapuram.

ANSWER: 1912

Explanation:
The Co-operative Societies Act was enacted in the year 1912.

• This Act may be called the Co-operative Societies Act, 1912; and
• It extends to [the whole of India except 3 [the territories which, immediately before the 1st November, 1956, were comprised in Part B States].

Co-operative Banks in India

The structure of cooperative network in India can be divided into 2 broad segments -
1. Urban Cooperative Banks
2. Rural Cooperative Banks

ANSWER: Deepak Mohanty

Explanation:
Deepak Mohanty is an economist at India's central bank, the Reserve Bank of India (RBI).

He holds the post of Executive Director at the head office of RBI in Mumbai.

The areas supervised by him are monetary policy, economic research and statistics.

He has also worked in various positions in economic research and monetary policy departments of the RBI.

ANSWER: Relationship Banking

Explanation:
Relationship banking is a strategy used by banks to enhance their profitability.

They accomplish this by cross-selling financial products and services to strengthen their relationships with customers and increase customer loyalty.

Relationship banking involves offering customers a broad array of financial products and services that go beyond simple checking and savings accounts.

In addition to these two basic products, relationship-banking products may include certificates of deposit, safe deposit boxes, insurance, investments, credit cards, loans and business services (e.g., credit card processing).

They may also include specialized financial products designed for specific demographics, such as students, seniors or the wealthy.

ANSWER: Its head office is in Hyderabad.

Explanation:
The headquarters of SIDBi is in Lucknow.

SIDBI is the Principal Financial Institution for the Promotion, Financing and Development of the Micro, Small and Medium Enterprise (MSME) sector and for co-ordination of the functions of the institutions engaged in similar activities.

SIDBI has also floated several other entities for related activities.

• Credit Guarantee Fund Trust for Micro and Small Enterprises provides guarantees to banks for collateral-free loans extended to SME.
• SIDBI Venture Capital Ltd. is a venture capital company focused at SME.
• SME Rating Agency of India Ltd. (SMERA) provides composite ratings to SME.
• SARC - India SME Asset Reconstruction Company in 2009, as specialized entities for NPA resolution for SME.

SIDBI

Founded : April 2, 1990
Headquarter : Lucknow, Uttar Pradesh
Current Head : Dr. Kshtarapati Shivaji (Feb 27 2015 - Present)

ANSWER: Bank of India

Explanation:
Bank of India (BoI) is commercial bank with headquarters in Mumbai, Maharashtra, India.

Founded in 1906, it has been government-owned since nationalization in 1969.

BoI is a founder member of SWIFT (Society for Worldwide Inter Bank Financial Telecommunications), which facilitates provision of cost-effective financial processing and communication services.

BoI - Bank of India

Founded : 7 September 1906, 110 years ago
Headquarter : Mumbai, Maharashtra, India
Current head : Shri Melwyn Rego (MD & CEO)

ANSWER: Nainital Bank

Explanation:
The Nainital Bank Limited (NTB) (known as Nainital Bank) is a scheduled commercial bank founded in 1922.

The bank is a subsidiary of Bank of Baroda, the second largest bank in India.

Nainital Bank was founded by Govind Ballabh Pant.

In 1975, the government-owned Bank of Baroda (BOB), the second largest bank in India, acquired a 98.6% (around 99%) stake in the bank and made it a subsidiary.

Nainital bank is associated with Bank of Baroda, HDFC Bank, LIC, National Insurance Company Limited etc.

Currently, NBL has 125 branches in Uttarakhand, Uttar Pradesh, Delhi, Haryana and Rajasthan.

Nainital Bank

Founded : 1922
Headquarter : Nainital, Uttarakhand
Current Head : Mukesh Sharma (Chairman & CEO)

ANSWER: Karnataka Vikas Grameen Bank

Explanation:
To promote and popularize cashless transactions in rural areas, the Karnataka Vikas Grameen Bank (KVGB) has come out with an innovative method of employing women in villages.

The bank would appoint women business correspondents called “Bank Sakhi” in select villages where this scheme would be implemented.

To start with, the bank had hired 11 “Bank Sakhis” and plans to appoint more in near future.

A “Bank Sakhi” is someone who has been a member of a self-help group involved in conducting banking and book-keeping activities of the group.

ANSWER: Financial Stability and Development Council

Explanation:
Financial Stability and Development Council is an apex-level body constituted by the Government of India.

The idea to create such a super regulatory body was first mooted by the Raghuram Rajan Committee in 2008.

In 2010, the then Finance Minister of India, Pranab Mukherjee, decided to set up such an autonomous body dealing with macro prudential and financial regularities in the entire financial sector of India.

Composition of the Council

Chairperson : The Union Finance Minister of India.

Members :

• Governor - Reserve Bank of India (RBl),
• Finance Secretary - Department of Economic Affairs (DEA),
• Secretary - Department of Financial Services (DFS),
• Chief Economic Advisor - Ministry of Finance,
• Chairman - Securities and Exchange Board of India (SEBI),
• Chairman - Insurance Regulatory and Development Authority (IRDA),
• Chairman - Pension Fund Regulatory and Development Authority (PFRDA),
• Chairman - Forward Markets Commission (FMC).

Recently Forward Markets Commission (FMC) has been merged into SEBI.

ANSWER: CIBIL

Explanation:
Credit Information Bureau Limited (CIBIL) is the first Credit Information Company in India.

TransUnion CIBIL Limited (Formerly: Credit Information Bureau (India) Limited) is India’s first Credit Information Company (CIC) founded in August 2000.

It collect and maintain records of individuals’ and non-individuals’ (commercial entities) payments pertaining to loans and credit cards.

These records are submitted to credit bureau by banks and other lenders on a monthly basis; using this information a Credit Information Report (CIR) and Credit Score is developed, enabling lenders to evaluate and approve loan applications.

CIBIL was promoted by State Bank of India (SBI), Housing Development Finance Corporation (HDFC), Dun & Bradstreet Information Services India Private Limited (D&B) and TransUnion International Inc. (TransUnion).

CIBIL

Founded : August 2000; 16 years ago
Headquarter : Mumbai, India
Current Head : M.V. Nair (Chairman), Satish Pillai (Managing Director)

ANSWER: Rs 1.80 lakh crore

Explanation:
Banks are expected to disburse Rs 1.80 lakh crore loans under the Pradhan Mantri Mudra Yojana (PMMY).

Last year, 3.5 crore beneficiaries’ availed Rs 1.22 lakh crore loans under PMMY.

ANSWER: Section 24 of the Banking Regulation Act

Explanation:
SLR is governed by the provisions of Section 24 of the Banking Regulation Act.

There is no minimum stipulation on SLR (earlier there used to be a minimum stipulated SLR of 25% - but this was removed with an amendment to the Banking Regulation Act in 2007).

However, SLR cannot exceed 40%.