Banking Financial Awareness · General Awareness

Banking Services and Operations

1,373 Questions

Banking Services and Operations cover the fundamental principles of financial institutions, including credit markets, money supply, and risk management. It also addresses various transaction methods and account types used by businesses. This topic is crucial for candidates preparing for banking and insurance recruitment examinations.

Banking AbbreviationsCredit Market OperationsMoney Supply MetricsRisk Management MeasuresForeign Exchange RulesDigital Banking Technology

Banking Services and Operations Questions

Multiple choice

Which is the first bank to set up overseas operations?

  1. Cosmos Co-operative Bank

  2. Saraswat Co-operative Bank

  3. Kalupur Commercial Co-operative Bank

  4. Mahila Utkarsh Co-operative Bank
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Saraswat Co-operative Bank holds the distinction of being the first co-operative bank in India to establish overseas operations, specifically a representative office in Dubai.

Multiple choice

A scheduled Urban Co-operative Bank can mobilize deposits from a non-scheduled Urban Cooperative Banks to the extent of……………………..of its total demand and time liabilities in preceding year—

  1. 10%

  2. 15%

  3. 20%

  4. 25%
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

RBI regulations limit the amount of deposits a scheduled UCB can mobilize from non-scheduled UCBs to 10% of their total demand and time liabilities from the preceding year to ensure liquidity and stability.

Multiple choice

Non-scheduled Urban Co-operative Banks can have deposits in those non-scheduled Urban Co-operative Banks

  1. That have earned Net Profit in last three Financial Years.

  2. That have NPA level of below 7%.

  3. That have Capital Adequacy Ratio of 9% or more.

  4. All the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

To ensure the safety of funds, non-scheduled UCBs are permitted to deposit funds in other non-scheduled UCBs only if those banks meet strict financial health criteria, including profitability, low NPA levels, and sufficient capital adequacy.

Multiple choice

Which of the following statements is correct regarding Central Cooperative Banks?

  1. These banks are established under Co-operative Societies Act 1912.
  2. Each district has a Central Co-operative Bank whose Capital is owned by Primary Co-operative Societies.
  3. These banks, like other banks, mobilize public deposits and provide short term loans to their customers.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Central Co-operative Banks are established under the Co-operative Societies Act, operate at the district level with capital from primary societies, and function like commercial banks by taking deposits and providing short-term loans.

Multiple choice

Which of the following statements is not correct regarding Primary Co-operative Credit Societies?

  1. These Societies mobilize deposits from rural and urban areas and provide short-term loan to its members.
  2. Entrance Fees, Share Capital, Deposits from Public, Reserve Fund, and Deposits from other credit societies/co-operative banks are the major sources of Capital of these Societies.
  3. These Societies provide loans to their members only.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

All three statements are correct descriptions of Primary Co-operative Credit Societies. They mobilize deposits, have diverse capital sources, and provide loans to members.

Multiple choice

Which of the following statements is correct regarding National Housing Bank?1.It is an apex bank for housing finance.

  1. It can make a plan for raising funds and providing loans for housing.
  2. It cannot raise its resources through issuance of debentures.

  1. 1

  2. 1 and 2

  3. 2 and 3

  4. 1, 2 and 3
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

NHB is the apex body for housing finance in India and has the authority to plan and raise funds. It is authorized to raise resources through various instruments, including debentures.