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Indian Banking and Financial System

Description: Indian Banking and Financial system
Number of Questions: 15
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Tags: Indian Banking and Financial System Banking Awareness Money and Finance Banking
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Which of the following is not a credit rating agency operating in India?

  1. ICRA

  2. CRISIL

  3. CARE

  4. FITCH

  5. None of these


Correct Option: E
Explanation:

Indian credit rating industry mainly comprises of CRISIL, ICRA, CARE, ONICRA, FITCH (India Ratings & Research) & SMERA. CRISIL - Credit Rating Information Services of India Limited - Headquarter – Mumbai ICRA - Investment information and credit rating agency - Headquarter - Gurgaon, India CARE - Credit Analysis and Research - Headquarters – Mumbai ONICRA - Headquarter - Gurgaon, India SMERA - Headquarters – Mumbai Fitch (India Ratings & Research) - Headquarters – Mumbai. India Ratings & Research is a 100% owned subsidary of Fitch group. Thus, option 5 is correct as all the given options are credit rating agencies operating in India.

 

Which of the following statements is incorrect regarding RRB?

  1. These banks are exempted from maintenance of SLR and CRR
  2. These banks can do non-fund based business
  3. These banks can invest in shares and debentures of companies
  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3


Correct Option: A

Under which Act is a Land Development Bank registered in our country?

  1. Indian Companies Act

  2. Development Banks Act

  3. Banking Regulation Act

  4. Cooperative Societies Act

  5. None of these


Correct Option: D
Explanation:

Land Development Bank is registered in India under Cooperative Societies Act.

Which of the following statements is/are incorrect?

  1. Only central cooperative banks have access to Reserve Bank of India.
  2. Cooperative banks are established on unitary basis.
  3. Reserve Bank of India has no control over cooperative banks.
  1. Only 1

  2. Both 1 and 2

  3. Both 2 and 3

  4. 1, 2 and 3

  5. Only 3


Correct Option: D
Explanation:

All of the given statements are wrong.

Choose the correct statement(s):

NABARD provides unlimited refinance facility to a co-operative bank if

  1. its NPA level is below 15%
  2. its Capital Adequacy Ratio is more than 9%
  3. its loan recovery is 90% or more
  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3

  5. 3


Correct Option: A
Explanation:

 Correct Ans. 1

Which is the first Public Sector Bank to increase its equity capital through public issue?

  1. Corporation Bank

  2. Dena Bank

  3. Syndicate Bank

  4. State Bank of India

  5. IDBI Bank


Correct Option: D
Explanation:

State Bank of India is the first Public Sector Bank to increase its equity capital through public issue.

Which of the following statements is correct regarding National Housing Bank?

  1. It provides refinance to scheduled commercial banks.
  2. It provides Guarantee and Underwriting services to Housing Finance institutions.
  3. It is not authorised to audit account books of Housing Finance institutions and scheduled commercial banks.
  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3

  5. None of these


Correct Option: B
Explanation:

Only first and second statements are correct.

Which of the following is an apex body with regards to housing finance?

  1. National Housing Bank

  2. Housing and Urban Development Corporation

  3. Housing Development Finance Corporation

  4. SBI Home Finance

  5. None of these


Correct Option: A
Explanation:

An apex body with regards to housing finance is National Housing Bank.

Which of the following statements is/are correct regarding Exim Bank?

  1. It provides financial advice and counseling services for internationalisation of business of Indian companies which are foreign oriented.
  2. It provides Working Capital Term Loan to export-oriented units.
  3. It provides refinance for export credit.
  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3

  5. None of these


Correct Option: D
Explanation:

All are correct.

A Local Area Bank can do business in maximum _____ district(s).

  1. one

  2. two

  3. three

  4. four

  5. five


Correct Option: C
Explanation:

 A Local Area Bank can do business in maximum three district(s).

Local Area Banks are classified under

  1. private sector

  2. public sector

  3. government sector

  4. cooperative sector

  5. None of these


Correct Option: A
Explanation:

Correct option is (1).

Which of the following is a subsidiary of State Bank of India to transact in Govt. securities?

  1. SBI Gilts Ltd.

  2. SBI DFHI Ltd.

  3. SBI Funds Management Ltd.

  4. SBI Factors and Commercial Services P. Ltd.

  5. None of these


Correct Option: B
Explanation:

 SBI DFHI Ltd. is a subsidiary of State Bank of India to transact in Govt. securities.

Minimum networth of an urban co-operative bank should be __________ for doing insurance business.

  1. Rs. 50 crore

  2. Rs. 100 crore

  3. Rs. 200 crore

  4. Rs. 500 crore

  5. Rs. 375 crore


Correct Option: B
Explanation:

 Minimum networth of an urban co-operative bank should be Rs. 100 crore for doing insurance business.

A scheduled urban cooperative bank having an NPA level of ___________ or more cannot accept deposits from a non-scheduled urban cooperative bank.

  1. 5%

  2. 6%

  3. 7%

  4. 8%

  5. 9%


Correct Option: C
Explanation:

 A scheduled urban cooperative bank having an NPA level of 7% or more cannot accept deposits from a non-scheduled urban cooperative bank.

Which of the following statements is correct?

  1. District Co-operative Banks have been established at District level.
  2. Primary Co-operative Banks have been established at Village level.
  3. State Co-operative Banks have been established at Apex level.
  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3

  5. None of these


Correct Option: D
Explanation:

All are correct.

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