General Awareness · Banking Financial Awareness

Regulatory Thresholds and Caps in India

860 Questions

Regulatory Thresholds and Caps in India refer to the statutory limits imposed on finance, taxation, and corporate governance. It covers sectoral caps, expenditure limits, and penalty thresholds defined by law. These questions are crucial for banking, accounting, and civil services exams.

Financial limitsTax deductionsCorporate regulationsElectoral thresholdsPenalties and fines

Regulatory Thresholds and Caps in India Questions

Multiple choice
  1. The company will be granted cash credit limit between Rs. 3 lacks to Rs. 5 lacks.

  2. The company will be granted cash credit limit from Rs. 3 lacks and Rs. 5 lacks.

  3. The cash credit limit between Rs. 3 lacks to Rs. 5 lacks will be granted to the company.

  4. The cash credit limit from Rs. 3 lacks and Rs. 5 lacks will be granted to the company.

  5. The company will be granted cash credit limit between Rs. 3 lacks and Rs. 5 lacks.

Reveal answer Fill a bubble to check yourself
E Correct answer
Explanation

Options (C) and (D) are not phrased correctly. 'Between' is always followed by 'and' and 'from' is followed by 'to', hence option (E) is correct.

Multiple choice
  1. Rs. 600 crore

  2. Rs. 900 crore

  3. Rs. 1200 crore

  4. Rs. 1500 crore

  5. Rs. 1800 crore

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The new rules allow the Union Finance Minister to clear proposals up to Rs 1,200 crore foreign equity without seeking an approval of the Cabinet Committee on Economic Affairs (CCEA). The department of industry policy and promotion (DIPP) has notified the changes in the foreign direct investment rules on March 26, 2010. Earlier, such proposals above Rs 600 crore were referred to the Cabinet Committee of Economic Affairs. The CCEA would now consider cases of foreign equity above Rs 1,200 crore.

Multiple choice
  1. 1,000

  2. 1,001

  3. 2,000

  4. 2,001

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

This question references specific SBI deposit rates from a particular period. SBI offered 10% interest on 1,000-day term deposits as part of a special promotional rate structure that was later discontinued. The 1,001 and 2,001-day options are unlikely to be correct as banks typically use round numbers like 1,000 days.

Multiple choice
  1. 2.25 lakh crore

  2. 2 lakh crore

  3. 2.50 lakh crore

  4. 3 lakh crore

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Rs. 2.25 lakh crore was the correct target for agriculture lending by banks in 2007-08. This target was set by the Reserve Bank of India to ensure adequate credit flow to farmers. The other options are close but incorrect - 2 lakh crore was too low and 2.5 or 3 lakh crore were too high.

Multiple choice
  1. Rs 1 lakh

  2. Rs 2 lakhs

  3. Rs 3 lakhs

  4. Rs 4 lakhs

  5. Rs 5 lakhs

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

In the Union Budget 2006-07, the Indian government announced that short-term crop loans up to Rs 3 lakh would be provided to farmers at a concessional interest rate of 7% per annum. This was a major step to provide relief to the agricultural sector.

Multiple choice
  1. No fee

  2. Rs.5 in the form of court fee stamp

  3. Rs.10 in the form of court fee stamp

  4. Rs.20 in the form of court fee stamp

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

For Central Departments as of 2006, there is a fee of Rs.10 for filing the request, Rs.2 per page of information and Rs.5 for each hour of inspection after the first hour, if the applicant is a Below Poverty Card holder then no fee shall apply. Such BPL card holders have to provide a copy of their BPL card along with their application to the Public Authority.

Multiple choice
  1. Rs. 50 crore

  2. Rs. 1 crore

  3. Rs. 2000 crore

  4. Rs. 5000 crore

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

The State Bank of India (Amendment) Bill was introduced to increase the authorized capital of SBI from Rs. 20 crore to Rs. 5000 crore. This massive increase allowed the bank to raise more capital from the market to meet Basel II norms and support its expansion. It also facilitated the government's transfer of its stake from the RBI to itself.

Multiple choice
  1. 9.25%

  2. 9.00%

  3. 9.02%

  4. 9.20%

Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

In December 2008, as part of a stimulus package, Indian Public Sector Undertaking (PSU) banks capped interest rates for new home loans. Loans between 5 lakh and 20 lakh rupees were set at a maximum of 9.25 percent for the initial five year period.

Multiple choice
  1. A and B

  2. B and D

  3. D only

  4. A and C

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Statement B is incorrect because the insurance benefit requirement is generally linked to usage within 90 days, not 60. Statement D is incorrect because RuPay was introduced by the National Payments Corporation of India (NPCI), not the National Pension Corporation.

Multiple choice
  1. The average annual package drawn by the students before they joined this program.

  2. The total batch size on the basis of which this claim has been made.

  3. Extent of variation among the pay packages drawn by the students subsequent to joining the program.

  4. The duration for which the program and the institution offering it have been in operation.

  5. How many students availed of the placement program to get jobs and how many got jobs on their own?

Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

As long as the course or the institute can fulfill their promise, it is not so important how long they have been in operation. This is not ignoring the fact that it could be useful otherwise to corroborate the reputation of the institution.

Multiple choice
  1. Rs. 50,000

  2. Rs. 60,000

  3. Rs. 70,000

  4. Rs. 75,000

  5. Rs. 1,00,000

Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

The National Housing Bank (NHB) guidelines for the Golden Jubilee Rural Housing Finance Scheme set the loan limit for individuals marginally above the poverty line at Rs. 70,000. This was a specific policy measure aimed at promoting rural housing.