Banking Awareness Test Questions - Set 9

1)   On which day the New Development Bank (NDB) floated by the BRICS nations, including India started its operations at its headquarters in Shanghai?

a. 20th July’15
b. 1st July’15
c. 21st July’15
d. 19th July’15
Answer  Explanation  Related Ques

ANSWER: 21st July’15

Chinese Finance Minister Lou Jiwei, Shanghai Mayor Yang Xiong and the bank's President K V Kamath attended the opening ceremony. Kamath will be the bank's President for the first five years.

NDB was step up for infrastructure funding in the emerging economies formally

2)   On 21st July’15 the Supreme Court rejected plea of applicants for OBC status in Bank PO exam. The applicants belong to which community?

a. Bengali
b. Marwari
c. Gurjar
d. Jaat
Answer  Explanation  Related Ques


A bench of Justices Ranjan Gogoi and R F Nariman said that the issue has already been decided and there was no vested right in favour of Jaat applicants. The apex court on March 17 had set aside the erstwhile UPA government's notification to include Jats in the central list of OBCs to accord quota benefits to them.

3)   Who cancelled Sahara Mutual Fund license on 28th July’15?

a. Supreme Court
c. BSE
Answer  Explanation  Related Ques


The Securities and Exchange Board of India has cancelled Sahara asset Management Company’s license. The market regulator in its order said that the company is not fit and proper entity to carry out the business of mutual fund. It said, Sahara’s fund management license would stand cancelled after 60 days from the date of the order. It has directed Sahara AMC not to take any new subscription from the investors including existing investors in systematic investment plans and also not to levy any penalties on the investors for not depositing the instalments.

4)   With which bank, the Government of India on 28th July’15 signed a $300 million loan to support the government’s flagship program, the National Urban Health Mission (NUHM)?

a. Asian Development Bank
b. World Bank
c. BRICS Bank
d. European Central Bank
Answer  Explanation  Related Ques

ANSWER: Asian Development Bank

The loan – Supporting National Urban Health Mission – will reinforce ongoing government efforts under the NUHM to develop health systems in urban areas that can deliver quality health services and that reach the urban poor and vulnerable. It will focus on strengthening primary health care and also promote better coordination between health and urban sectors and opportunities for public-private partnerships.

NUHM is aimed at improving the health status of the country’s urban population.

5)   Which of the following banks has launched the India's first mortgage guarantee-backed home loan product ‘Extraa Home Loan’?

a. State bank of India
b. Bank of Baroda
c. ICICI Bank
d. HDFC Bank
Answer  Explanation  Related Ques


This move will help customers raise the eligible amount by up to 20 percent and increase the tenure by up to seven years. It will expand the credit amount and increase the tenure upto 67 years of age for an additional fee as well.

6)   Name the micro finance company that becomes the first to start operation as a commercial bank?

a. PayTm Bank
b. Vodafone m-Pesa Bank
c. Yes Bank
d. Bandhan Bank
Answer  Explanation  Related Ques

ANSWER: Bandhan Bank

Bandhan is the first micro-finance company to transform into a bank. Reserve Bank of India has turned liberal in doling out banking licenses to entities of different capabilities. It has just issued 11 in-principle licenses to set up payments banks. Bandhan Bank will primarily cater to the unorganized sector like daily wage earners and women running small businesses -- the segments that had been its borrowers for a decade. As a bank, it will also offer savings, remittance and insurance services and try to raise its stake in the bottom of the pyramid customers.

7)   For which of the following Income Tax Department has to open special return counters?

a. Defence Personnel, Salaried Tax Payers & Pensioners
b. Salaried Tax Payers, Defence Personnel & Differently-abled Persons
c. Pensioners, Salaried Tax Payers & Differently-abled Persons
d. Salaried Tax Payers, Pensioners & Differently-abled Persons
Answer  Explanation  Related Ques

ANSWER: Salaried Tax Payers, Pensioners & Differently-abled Persons

Salaried tax payers and pensioners with annual income upto five lakh rupees and with no refund claim can file their returns at these counters upto 31st Aug’15. However, the income limit of 5 lakh rupees and no claim refund provision will not apply to tax payers over the age of 80 years deriving salary or pension income. There will be special facilitation counters for senior citizens and differently - abled persons. An official release said similar facilitation counters are being set up in other metro cities based on the local requirements.

8)   Name the committee to recommend that granting relief to FIIs on Minimum Alternate Tax (MAT) will be a positive thing for the market?

a. C Rangarjan Committee
b. Bimal Jalan Committee
c. AP Shah Committee
d. K N Desai Committee
Answer  Explanation  Related Ques

ANSWER: AP Shah Committee

The AP Shah committee on minimum alternate tax (MAT) has recommended to the finance ministry that the levy shouldn't be imposed for the period preceding April 1, 2015. The panel, headed by Law Commission Chairman A P Shah, was set up to resolve the dispute between FIIs and the government after notices were served to 68 FIIs by the Income Tax Department demanding Rs 602 crore as MAT dues.

9)   Who is the head of the committee that recommended conversion of Urban Cooperative Banks (UCBs) with business size of 20,000 crore rupees or more into regular banks?

a. Bibek Debroy
b. Raghuram Rajan
c. R Gandhi
d. U K Sinha
Answer  Explanation  Related Ques

ANSWER: R Gandhi

A report of the High Powered Committee on UCBs headed by RBI Deputy Governor R Gandhi however clarified that the conversion will not be compulsory for large UCBs and they can continue the way they operate currently in terms of balance sheet or asset size. In order to minimise the systemic risk, the committee has recommended that large UCBs convert themselves into commercial banks. The panel further said smaller UCBs with business size of less than 20,000 crore rupees willing to convert to Small Finance Banks can apply to the Reserve Bank for conversion. It has also suggested that licenses may be issued to financially sound and well-managed cooperative credit societies having a minimum track record of 5-years to operate as UCBs. RBI has invited suggestions and comments from public on this report by 18th of next month.

10)   How many payment banks received in-principle approval by the Reserve bank of India?

a. 3
b. 4
c. 6
d. 11
Answer  Explanation  Related Ques


A payment bank is different from conventional banks as it cannot lend to its customers. It is allowed to take deposits, allow remittances and provide simple financial products. The central bank has approved applications of National Securities Depository Limited (NSDL), Reliance Industries , Aditya Birla Nuvo , Airtel M Commerce, Department of Posts , Fino PayTech, Tech Mahindra, Vodafone m-pesa, Cholamandalam Distribution Services, PayTM, and Sun Pharma.

11)   With which country India has signed a Memorandum of Understanding (MoU) to tackle the menace of fake Indian currency notes (FICN) smuggling in Aug’15?

a. Myanmar
b. China
c. Pakistan
d. Bangladesh
Answer  Explanation  Related Ques

ANSWER: Bangladesh

The MoU was signed during a maiden meeting of the Joint Task Force on Fake Currency Notes (JTFFC) in Dhaka.

12)   Which bank has launched the fist contactless debit, credit and multi-currency forex card?

a. Axis Bank
b. ICICI Bank
c. HDFC Bank
d. SBI
Answer  Explanation  Related Ques

ANSWER: Axis Bank

The bank launched contactless multi-currency forex cards in partnership with Visa - the payments gateway company. Axis Bank would be the first bank to issue multi-currency contactless cards or 'tap and pay' cards which can be loaded in 15 currencies such as Swiss Franc and Hong Kong dollar besides the three main currencies - US dollar, Euro and British Pound.

13)   Who has been appointed as the MD and CEO of Bank of Baroda by the government?

a. P S Jayakumar
b. Jaykumar Sharma
c. Shiv Pal Sharma
d. Ajay Shankar
Answer  Explanation  Related Ques

ANSWER: P S Jayakumar

This is the first time the government has chosen the candidate from the private sector to head the Public Sector Banks.

14)   Who has been appointed as the MD and CEO of Canara Bank by the government?

a. M S Dhir
b. Rakesh Sharma
c. Rajesh Dhariwal
d. Sanjay Shah
Answer  Explanation  Related Ques

ANSWER: Rakesh Sharma

Rakesh Sharma is chosen from private sector to head the Public Sector Bank.

15)   Name the initiative launched by the Finance Minister Arun Jaitely to revamp functioning of public sector banks, PSBs on 14th Aug’15?

a. Seven Plan
b. Maulik Niti
c. BankNiti
d. Indradhanush
Answer  Explanation  Related Ques

ANSWER: Indradhanush

Indradhanush is a seven pronged plan that includes appointments, capitalisation, de-stressing PSBs, empowerment, framework of accountability and governance reforms.

16)   Name the body of 'eminent' professionals and officials, which will replace the Appointments Board for appointment of Whole-time Directors as well as non-Executive Chairman of PSBs?

a. NITI Aayog
c. Bank Board Bureau
d. Bureau of Banking Standards
Answer  Explanation  Related Ques

ANSWER: Bank Board Bureau

The government decided to set up a Bank Board Bureau, BBB through which two dozen state-run banks would be monitored for key performance indicators. The BBB will start the functioning from the 1st of April next year and the selection of its member will start in the next six months.

17)   Who has allowed banks to tie up with insurers, to sell three products each from life, non-life and standalone health insurance segment?

a. RBI
Answer  Explanation  Related Ques


The Insurance Regulatory and Development Authority of India Member Nilesh Sathe announced that the decision will not be binding on banks who are free to take their call.

18)   The Reserve Bank of India will transfer its surplus profit of 65,896 crore rupees to the Centre. This amount is ___ percent higher than previous year.

a. 5%
b. 19%
c. 25%
d. 33%
Answer  Explanation  Related Ques


Last year, the apex bank had transferred 52,679 crore rupees of its surplus profit to the Government.

19)   Which of the following got accredited by the Green Climate fund as a national implementing entity for undertaking climate change related projects in India?

Answer  Explanation  Related Ques


No explanation is available for this question!

20)   On 8th Aug’15 which bank has reported a 51% decline in its net profit to 256.7 crore rupees for the first quarter ended June 30 against the same quarter last fiscal?

a. PNB
b. UCO Bank
c. Allahabad Bank
d. Union Bank of India
Answer  Explanation  Related Ques


The Gross Non-performing Assets as a percentage of total advances increased to 7.3 percent during June quarter, from 4.3 percent in the same period last fiscal. Net non-performing assets also rose to 4.5 percent against 2.3 per cent during the same quarter last year.

21)   As per the notification by Reserve Bank of India (RBI) on 6th Aug’15, in which areas the banks are allowed to shift, merge or close branches without seeking its prior permission?

a. Urban Areas
b. Rural Areas
c. Semi-Rural Areas
d. Semi-Urban Areas
Answer  Explanation  Related Ques

ANSWER: Urban Areas

In a notification on its website, RBI said banks can “shift, merge or close all branches except rural branches and sole semi-urban branches at their discretion”. Shifting, merging or closing a branch in a rural area or a sole branch in a semi-urban area would, however, continue to require prior permission from RBI.

22)   On 6th Aug’15 the Lok Sabha adopted the Negotiable Instruments (Amendment) Bill 2015 that enables the _________.

a. Enable Cheque collections on Electronic Mode & Proposed to change the definition of Cheques
b. Proposed to change the definition of Cheques & Lift the penalty over bouncing cheques
c. Lift the penalty over bouncing cheques & Proposed to change the definition of Cheques
d. Increase the penalty over bouncing cheques & Enable Cheque collections on Electronic Mode
Answer  Explanation  Related Ques

ANSWER: Enable Cheque collections on Electronic Mode & Proposed to change the definition of Cheques

The proposed law seeks to amend the Negotiable Instruments Act of 1881 in tune with the modern day requirements for enabling electronic mode of operations. Nearly 40 thousand cheque bouncing cases are pending with High Courts and about 19 lakh cases in lower courts across the country.

23)   As announced by EPFO on 6th Aug’15, what amount of money would be invested by EPFO via Exchange Traded Funds (ETF)?

a. 200 Crore
b. 980 Crore
c. 2400 Crore
d. 5000 Crore
Answer  Explanation  Related Ques

ANSWER: 5000 Crore

The Employment Provident Fund Organisation - EPFO will invest around Rs 5,000 crore this fiscal through SBI Mutual Fund's two index linked ETFs, one to the BSE's Sensex and the other to NSE's Nifty. The decision comes after the labour ministry allowed EPFO to invest 5 to 15 % of its incremental corpus in equities through ETFs. Asked why EPFO was starting off with just 5% of the corpus when it has the mandate for 15%, EPFO Commissioner K.K. Jalan said that the organisation had decided to go slow. Adding that investing through ETF route reduces risk, Mr. Jalan said fund allocation could increase to as much as Rs 70 billion to Rs 80 billion next year and that the organisation will also consider investing in other ETFs. Currently, EPFO has 8.5 trillion rupees under management, most of it invested in government bonds.

24)   Which temple in India has opened up a Demat account to accept donations from devotees in the form of shares and securities?

a. Shirdi Sai Temple
b. Tryambkeshwar Temple
c. Vaisho Devi Temple
d. Tirumala Venkateswara Temple
Answer  Explanation  Related Ques

ANSWER: Tirumala Venkateswara Temple

Tirumala Venkateswara Temple, also known as Tirupati Balaji, is considered to be one of India's richest temple and receives crores of rupees, precious metals and stock certificates in donations every year. The temple, as of August 2014, had around 5,000kg of gold deposited with various banks in India.

25)   Name the person elected as the new Chairman of the Life Insurance Council on 1st Aug’15?

a. K N Rai
b. S K Roy
c. Sushil Kumar
d. Rajesh Vadhera
Answer  Explanation  Related Ques


Roy will head the three-member Executive Committee (EC), a key body of the Council, for a period of three years.

26)   Name the mobile banking app of Kotak Mahindra Bank (KMB) launched primarily for “un-banked” regions?

a. Kotak Bharat
b. Bharat
c. Kotak India
d. IndianKotak
Answer  Explanation  Related Ques

ANSWER: Kotak Bharat

It is the ‘inclusive digital banking’ app launched by KMB that is primarily targetted to benefit customers in the under-banked and un-banked regions, who can access its services in their preferred language. One major benefit of this app is that it requires no internet connectivity.

27)   What amount of capital would be infused in Public Sector banks by Indian Government over a period of four years to improve capital ratio and fight with rising bad loans?

a. 70,000 Crore
b. 1 Lakh Crore
c. 2 lakh Crore
d. 500 Crore
Answer  Explanation  Related Ques

ANSWER: 70,000 Crore

No explanation is available for this question!

28)   What is the name of the project that is an ambitious project of the Union Finance Ministry to bring into net black money hoarders and tax evaders by using optimum technology?

a. Project Insight
b. Project Black Money
c. Project Money Laundering
d. Project Monitoring
Answer  Explanation  Related Ques

ANSWER: Project Insight

For this project ministry recently floated a tender worth over Rs. 150 crore to buy data analytics software and related infrastructure. It will primarily track the Permanent Account Numbers (PAN) being quoted on financial transactions and tally them with income tax filings.

29)   Which bank has acquired the broking and trading company?

b. BNP Paribas
c. Deutsche Bank
d. ING Vysya
Answer  Explanation  Related Ques


Mumbai based Sharekhan has been valued at Rs. 2200 Crore.

30)   How many firms have been banned by SEBI which are suspected to be platforms for tax evasion?

a. 500
b. 600
c. 764
d. More than 900
Answer  Explanation  Related Ques

ANSWER: More than 900

Suspecting tax evasion of at least 5,000 to 6,000 crore rupees, Securities and Exchange Board of India (SEBI) has clamped down on a large number of organised syndicates who had set up shops to convert black money into legitimate-looking funds through the stock market platform.

31)   Which stock exchange has launched an enhanced online system for Non-banking Financial Companies (NBFCs) to report data on pledged securities on a quarterly basis?

a. NSE
b. BSE
c. MCX
Answer  Explanation  Related Ques


BSE had launched an enhanced module for pledge reporting wherein the NBFCs shall be able to submit quarterly reporting of pledged data. This is in line with RBI's recent initiative vide its circular dated April 10, 2015. Currently, more than 65 NBFCs are using this platform on BSE. So far, the total value of promoters' pledged holding stands at nearly 2 lakh crore rupees on the exchange. On August 21, 2014, the central bank had directed NBFCs with asset size of 100 crore rupees and above to report online to stock exchanges, information on the shares pledged in their favour, by borrowers for availing loans. In its circular in April this year, the RBI had asked NBFCs to report data on pledged shares on a quarterly basis, among others.

32)   Why did the Union Government on 21st July’15 extend Interest Subvention Scheme (ISS) to Public Sector Banks (PSBs), private sector commercial banks, rural regional banks (RRBs), cooperative banks and NABARD?

a. To ensure availability of crop loans of up to 5 lakh to farmers at 6% per annum
b. To ensure availability of crop loans of up to 10 lakh to farmers at 2.5% per annum
c. To ensure availability of crop loans of up to 3 lakh to farmers at 7% per annum
d. To ensure availability of crop loans of up to 8 lakh to farmers at 8.5% per annum
Answer  Explanation  Related Ques

ANSWER: To ensure availability of crop loans of up to 3 lakh to farmers at 7% per annum

The decision to continue interest subvention on short term crop loans was taken by the Union Cabinet chaired by Prime Minister Narendra Modi for the fiscal 2015-16.

33)   Who has been appointed as the head of the 14 member committee that will work out a five-year action plan for financial inclusion?

a. Deepak Mohanty
b. Bimal Jalan
c. Bibek Debroy
d. Arvind Kumar
Answer  Explanation  Related Ques

ANSWER: Deepak Mohanty

Deepak Mohanty is the RBI Executive Director. The Committee will work to spread the reach of financial services to unbanked population. The committee was constituted in reference to Prime Minister Narendra Modi’s address on the occasion of the Reserve Bank’s 80th anniversary wherein he asked the Bank to take the lead in encouraging financial institutions and to set a medium-to-long term target for sustainable financial inclusion.

34)   As per the RBI Guidelines, on which of the following days RTGS facility will not operate?

a. 1st Monday of the month & 4th Saturday of the month
b. 2nd Saturday of the month & 4th Saturday of the month
c. All Saturdays of the month & 4th Saturday of the month
d. All Saturdays of the month & 2nd Saturday of the month
Answer  Explanation  Related Ques

ANSWER: 2nd Saturday of the month & 4th Saturday of the month

The Reserve Bank has said that the Real-time gross settlement - RTGS system will not be operated on second and fourth Saturdays with banks observing public holiday on those days. In a notification issued from Mumbai, RBI said that the system will operate for full days on working Saturdays of the month. The minimum amount to be remitted through RTGS is Rs 2 lakh while there is no upper ceiling.

35)   Which of the following banks were declared as Domestic Systemically Important Banks (D-SIBs) by the RBI on 31st Aiug’15?

a. SBI & ICICI Bank
b. ICICI Bank & PNB
c. HDFC Bank & SBI
Answer  Explanation 


The D-SIB framework requires RBI to disclose the names of banks designated as D-SIBs every year in August starting from August 2015. Now it is to be interpreted as that these banks are so integral to the economy that their failure would have to be prevented at any cost.

36)   Who has been appointed as the new Finance Secretary on 31st Aug’15?

a. L C Goyal
b. Rajiv Mehrishi
c. Ratan P Watal
d. Shaktikanta Das
Answer  Explanation  Related Ques

ANSWER: Ratan P Watal

He is a 1978-batch IAS officer of the Andhra Pradesh cadre.

37)   As per the Fitch Ratings released on 1st Sep’15, which of the following banks has been downgraded by one notch to 'bb' to reflect the growing risk to the bank's capital position from its mounting stressed assets?

a. Indian Bank
b. Canara Bank
c. Axis Bank
d. Punjab National Bank
Answer  Explanation  Related Ques

ANSWER: Punjab National Bank

Rating agency Fitch Ratings downgraded PNB's Viability Rating by one notch to 'bb' on the growing risk to the bank's capital position from a mounting stock of stressed assets.

38)   What methodology has been proposed by RBI on 1st Sep’15 to make Base Rate sensitive to policy changes?

a. Marginal cost of funds Methodology
b. Funds Methodology
c. Currency Methodology
d. All of these
Answer  Explanation 

ANSWER: Marginal cost of funds Methodology

The new methodology is aimed at bringing uniformity among Base Rate of banks so that they will be more sensitive to any changes in policy rates of the RBI like Cash Reserve Ratio (CRR), Statutory Liquidity Ratio (SLR), etc. At present, banks are following different methodologies in computing their Base Rate like on the basis of average cost of funds, marginal cost of funds or blended cost of funds (liabilities).

39)   As per the announcement made by RBI on 3rd Sep’15, the Reserve Bank of India will shortly put into circulation ____coins to commemorate golden jubilee of Indo-Pak War 1965.

a. Rs.1
b. Rs.2
c. Rs.5
d. Rs.10
Answer  Explanation 


RBI said in a release that the coins will be legal tender as provided in the Coinage Act 2011. Existing coins in this denomination will also continue to be legal tender. The new coin in the obverse will bear Lion Capital of Ashoka Pillar in the centre with Satyamev Jayate inscribed below it, the release said.