Tag: organisation of commerce and management

Questions Related to organisation of commerce and management

Every regional bank is sponsored by _________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. Central Bank

  2. RBI

  3. Nationalised Bank

  4. NABARD

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Correct Option: C
Explanation:

Nationalized bank are the public sector banks. All the regional rural banks are owned by either central government or state government.

Nationalized banks sponsor Regional Banks for greater rural development and availability of basic banking activities in rural areas. 

The idea of establishing Regional Rural Banks was mooted in the _______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. Integrated Rural Development Programme

  2. Community Development Programme

  3. Food for Work Programme

  4. Twenty Point Economic Programme

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Correct Option: D
Explanation:

The idea of establishing Regional Rural Banks was mooted in the Twenty Point Programme of July 1975. It was established to serve the credit needs of the rural people.  

Regional Rural Bank came into existence in _______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. 1970

  2. 1972

  3. 1975

  4. 1982

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Correct Option: C
Explanation:

Regional Rural Bank (RRB) was established under the provision of an Ordinance and the RRB Act, 1976. RRBs are the created with the view to cater to rural areas of India with basic banking and financial services. They have banking operations in different states of India. 

The board of financial supervision was set up in ________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. 1994

  2. 1995

  3. 1996

  4. 1997

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Correct Option: A
Explanation:

Due to the financial crisis and failure of large banks, to keep a close watch  and supervision was required to avoid recurrence of many financial crisis. Hence, the Board for Financial Supervision was set up by RBI. The object was to pay at most attention to the supervision of the institution in the financial sector.

Which of the following statements is true or false?
a) Initially, 5 regional rural banks were set up in 1970.
b) Every regional rural banks is sponsored by a national bank.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. (a) is true, but (b) is false

  2. (a) is false, but (b) is true

  3. both (a) and (b) are correct

  4. both (a) and (b) are false

Show answer
Correct Option: B
Explanation:

Nationalized Bank are the public sector banks, mostly owned by the state. All the Regional Rural Banks are owned by either central government or state government.  Hence, nationalized banks sponsor Regional Banks for greater rural development and availability of basic banking activities in rural areas. 

Dantwala Committee is related with _______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. RRB's (Regional Rural Bank)

  2. RBI (Reserve Bank of India)

  3. NABARD (National Bank for Agriculture and Rural Development )

  4. IDBI bank

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Correct Option: A
Explanation:

Dantwala committee led by Mohanlal Lallubhai Dantwala recommended in 1978 that RRB's should become an integral part of rural credit structure. It also recommended block level planning.  

The Banking Ombudsman scheme started from ______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. June 1994

  2. June 1995

  3. August 1995

  4. January 1995

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Correct Option: B
Explanation:

Banking Ombudsman scheme was introduced under section 35 A of the Banking Regulation Act, 1949 with effect from 1995. Under Banking Ombudsman scheme, banking ombudsman is appointed by RBi he is a senior official. The official handles and redress customer complaints against deficiency in certain banking services. 

Long-term agricultural credit is provided by ________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. Land Development Bank

  2. State Cooperative Bank

  3. Central Cooperative Bank

  4. Commercial Bank

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Correct Option: A
Explanation:

Long term agricultural credits are provided for land improvement, digging of wells, buying farm animals, purchase of machinery. Most of the expenses are relating to agriculture and other allied land development activities. Such long term agricultural credit is provided by Land Development Bank.

The Deposit Insurance Corporation was established in ________.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. 1961

  2. 1962

  3. 1963

  4. 1964

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Correct Option: B
Explanation:

The government of India enacted The Deposit Insurance Corporation Act in 1961. The whole objective of DIC was to provide necessary protection to the depositors from the risk of losing their deposits  and to inspire public confidence in the banking system.  

An apex institution in the sphere of development banking in India is ______.

organisation of commerce and management specialised financial institutions institutional sources long term sources of finance sources of business finance - 2

  1. IDBI

  2. IFCI

  3. NABARD

  4. UTI

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Correct Option: A