Exercise Quiz & Test – 21


1.  __________ to form Bank Board Bureau:
a. Union Government
b. RBI
c. SBI
d. World Bank

View Answer
a. Union Government
Explanation :
* Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). It was announced by Union Finance Minister Arun Jailtley as part of a seven-pronged revamp plan for PSBs dubbed as Indradhanush (rainbow) plan. Facts about Bank Board Bureau : Bank Board Bureau (BBB) will start the functioning from next financial year i.e. from 1st April 2016 and the selection of its member will start in the next six months. It will replace existing system Appointments Board in which appointments for top level jobs at PSBs are made by an appointments committee led by the Reserve Bank of India (RBI) Governor. Composition: The BBB will be a body of ’eminent’ professionals and shall consist of only one government official. It will be six members body with at least 3 former bankers, 2 professionals and secretary, department of financial services representing government. Functions: Give recommendations for appointment of full-time Directors as well as non-Executive Chairman of PSBs. Give advice to PSBs in developing differentiated strategies for raising funds through innovative financial methods and instruments and to deal with issues of stressed assets. Guide banks on mergers and consolidations.

2.  ______ launched the First Multi-Currency Contactless Card service in India
a. RBI
b. Axis Bank
c. SBI
d. PNB

View Answer
b. Axis Bank
Explanation :
* India’s third largest private sector lender, Axis Bank has launched the first Contactless Debit, Credit and Multi-Currency Forex Card in association with VISA payWave in the country. Axis Bank will offer a contactless debit/credit cards to its 1.7 million premium customers which also enables withdrawal of 15 currencies via Multi-Currency Forex facility. To facilitate contactless cards operations bank will upgrade 50,000, of its point of sale (PoS) machines across the country.

3.  ______ allows Banks to tie up with insurers
a. IRDAI
b. RBI
c. SBI
d. World Bank

View Answer
a. IRDAI
Explanation :
* The Insurance Regulatory and Development Authority of India (IRDAI) has allowed banks to tie up with insurers. This decision was taken as part of the IRDAI’s new Bancassurance model guidelines which will be notified soon. Prior to this decision, banks were not allowed to have insurance agency tie-ups with more than one insurer. As per new decision banks can tie up with nine insurers from three segments viz. life, non–life and standalone health. It will not be binding on banks and they are free to take their call. Earlier, IRDAI had constituted a 7 member committee to study the reviewing of the existing architecture of the Banacassurance model.

4. ____ Bank launches ‘Saral-Rural Housing Loan’ Scheme for weaker sections
a. ICICI
b. SBI
c. PNB
d. Syndicate Bank

View Answer
a. ICICI
Explanation :
* India’s largest private sector lender Industrial Credit and Investment Corporation of India (ICICI) Bank has launched ‘ICICI Bank Saral-Rural Housing Loan’ Scheme for weaker sections of society. The scheme is new home loan proposition of the bank with special interest rate to cater people from rural areas including women borrowers as well as from weaker sections.

5. __________ launches Suraksha Bandhan drive in Mission Mode
a. Union Government
b. RBI
c. World Bank
d. PNB

View Answer
a. a. Union Government
Explanation :
* Union Government has launched Suraksha Bandhan drive in a Mission Mode through participating insurance companies and banks. The drive aims at taking forward Union Government’s objective of creating a universal social security system in the country, especially for the poor and the under-privileged sections.

6. ___ allows banks to merge, shift or close branches in urban areas
a. RBI
b. SBI
c. Union government
d. World bank

View Answer
a. RBI
Explanation :
* Reserve Bank of India (RBI) has taken decision to allow banks to merge, shift or close branches in urban areas on their own discretion. In this regard, RBI has issued a notification that mention detailed provisions of above decisions. This move will give banks greater operational freedom but it won’t be valid for rural areas.

As per RBI notifcation :
Merger, shifting or closure of any rural branch as well as a sole semi urban branch will require prior approval of the District Level Review Committee (DLRC) or District Consultative Committee (DCC). Banks making changes should inform customers of its branch time before actual merger, shifting or closure of the office. The banking activity, which include deposit or loan business should not be maintained at both places. In case of new location as part shifting should be located within 1 km of the existing location. The banks should ensure that they continue to fulfill the role entrusted to these branches under the Direct Benefit Transfer Schemes (DBTS) and other government sponsored programmes. It should be noted that the apex bank has allowed banks to shift their some branch in any centre due rent or space constraints without seeking prior approval of RBI.

7. Lok Sabha passes ____________ , 2015
a. Negotiable Instruments (Amendment) Bill
b. Lokpal bill
c. Easy Banking Bill
d. None of these

View Answer
a. Negotiable Instruments (Amendment) Bill
Explanation :
* Lok Sabha has passed Negotiable Instruments (Amendment) Bill 2015 by a voice vote. The bill seeks to amend The Negotiable Instruments Act, 1881 in order to make cheque-bounce filing of cases more convenient for check payees (person who receives the cheque). The bill also seeks to replace an ordinance which was re-promulgated in this regard earlier in May 2015 after it was not passed in Rajya Sabha, though it was passed by the Lok Sabha in the May 2015.

8. ____ India plans to launch ‘green bonds’
a. HSBC
b. RBI
c. SBI
d. PNB

View Answer
a. HSBC
Explanation :
*
HSBC India’s chairman Naina Lal Kidwai announced to launch ’green bonds’ in India for raising funds for investments in environmental projects. Announcement was done by the HSBC chairman in a Ficci event held on 3 August 2015. The total investment attracted by Green Bonds in last two years is 37 million dollars. HSBC is the fourth largest issuer in the world. Green Bonds in India was initially launched by Axis Bank and Yes Bank in February 2015 that attracted investment of 1,000 crore rupees against the target of 500 crore rupees.
What is Green Bond?
A bond is a debt instrument with which a bond issuer gets capital while the investors receive fixed income in the form of interest. The issuer of green bond gets capital from the investors only if the investment is being raised to fund ‘green’ projects relating to renewable energy or emission reductions etc.

9. RBI to issue Rs ____ coins to mark International Yoga Day
a. 10
b. 20
c. 50
d. 5

View Answer
a. 10
Explanation :
* Reserve Bank of India (RBI) will soon issue 10 rupee denomination coins to commemorate International Yoga Day which is being observed every year on 21 June.

10.  _____ bank launches ‘Kotak Bharat’ mobile banking app for ‘un-banked’ regions
a. Kotak
b. SBI
c. RBI
d. Axix Bank

View Answer
a. Kotak
Explanation :
* Kotak Mahindra Bank (KMB) launched a mobile banking app ‘Kotak Bharat’ aiming to provide mobile banking services to customers in the remotest regions of India.