Banking & Financial Sectorबैंकिंग एवं वित्तीय क्षेत्र

Question: As part of the liberalisation programme and with a view to attracting foreign exchange, the Government and the RBI have devised two schemes known as FCNR-‘A’ and FCNR-‘B’.
Which of the following is/are true regarding these two schemes?
I. Under scheme ‘A’ RBI bears exchange rate fluctuations.
II. Under scheme ‘B’, other banks are to meet out the difference in exchange rate fluctuations.
III. Both the schemes stand withdrawn now.
IV. Only scheme ‘A’ has been withdrawn.
Select the correct answer from the codes given below:

Question: The Narasimham Committee for Financial Sector Reforms has suggested reduction in

Question: Consider the following:
I. Industrial Finance Corporation of India
II. Industrial Credit and Investment Corporation of India
III. Industrial Development Bank of India
IV. Unit Trust of India
The correct sequence in which the above was established is

Question: Match List I with List II and select the correct answer by using the codes given below the lists:
List I (Committees)
I. Disinvestment of shares in Public Sector Enterprises
II. Industrial Sickness
III. Tax Reforms
IV. Reforms in Insurance Sector
List II (Chaired by)
A) Rajah Chelliah
B) Onkar Goswami
C) R. N. Malhotra
D) C. Rangarajan
Codes:

Question: The accounting year of the Reserve Bank of India is

Question: From the balance sheet of a company, it is possible to

Question: Resurgent India Bonds were issued in US Dollar, Pound Sterling and

Question: Which of the following committees examined and suggested Financial Sector Reforms?

Question: Consider the following statements regarding Reserve Bank of India:
I. It is a banker to the Central Government.
II. It formulates and administers monetary policy.
III. It acts as an agent of the Government in respect of India’s membership of IMF.
IV. It handles the borrowing programme of Government of India.
Which of these statements are correct?

Question: Consider the following financial institutions of India:
1. Industrial Finance Corporation of India (IFCI)
2. Industrial Credit and Investment Corporation of India (ICICI)
3. Industrial Development Bank of India (IDBI)
4. National Bank for Agriculture and Rural Development (NABARD)
The correct chronological sequence of the establishment of these institutions is

Question: In India, the first bank of limited liability managed by Indians and founded in 1881 was

Question: Consider the following statements:
1. The maximum limit of shareholding of Indian promoters in private sector banks in India is 49 per cent of the paid-up capital.
2. Foreign Direct Investment up to 49 per cent from all sources is permitted in private sector banks in India under the automatic route.
Which of these statements is/are correct?

Question: Consider the following statements:
1. The National Housing Bank, the apex institution of housing finance in India, was set up as a wholly-owned subsidiary of the Reserve Bank of India.
2. The Small Industries Development Bank of India was established as a wholly-owned subsidiary of the Industrial Development Bank of India.
Which of the statements given above is/are correct?

Question: Consider the following statements:
1. Reserve Bank of India was nationalized on 26 January 1950.
2. The borrowing programme of the Government of India is handled by the Department of Expenditure, Ministry of Finance.
Which of these statements given above is/are correct?

Question: Consider the following statements:
1. Global Trust Bank has been amalgamated with the Punjab National Bank.
2. The second report of the Kelkar Committee dealing with direct and indirect taxes has maintained its original recommendations, including the abolition of exemptions relating to housing loans.
Which of the statements given above is/are correct?

Question: Which one of the following Indian banks is not a nationalized bank?

Question: Consider the following statements:
1. Life Insurance Corporation of India is the oldest insurance company in India.
2. National Insurance Company Limited was nationalized in the year 1972 and made a subsidiary of General Insurance Corporation of India.
3. Headquarters of United India Insurance Company Limited are located at Chennai.
Which of the statements given above are correct?

Question: Basel II relates to which one of the following?

Question: The National Housing Bank was set up in India as a wholly-owned subsidiary of which one of the following?

Question: Consider the following pairs:
Large Bank : Country of origin
1. ABN Amro Bank : USA
2. Barclays Bank : UK
3. Kookmin Bank : Japan
Which of the above pairs is/are correctly matched?

Question: In the context of independent India's economy, which one of the following was the earliest event to take place?

Question: With reference to the Non-banking Financial Companies (NBFCs) in India, consider the following statements:
1. They cannot engage in the acquisition of securities issued by the government.
2. They cannot accept demand deposits like Savings Account.
Which of the statements given above is/are correct?

Question: In India, the interest rate on savings accounts in all the nationalized commercial banks is fixed by

Question: With reference to the institution of Banking Ombudsman in India, which one of the statements is not correct?

Question: Consider the following statements:
The functions of commercial banks in India include
1. Purchase and sale of shares and securities on behalf of customers.
2. Acting as executors and trustees of wills.
Which of the statements given above is/are correct?

Question: Why is the offering of 'teaser loans' by commercial banks a cause of economic concern?
1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future.
2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units.
Which of the statements given above is/are correct?

Question: The Reserve Bank of India (RBI) acts as a bankers' bank. This would imply which of the following?
1. Other banks retain their deposits with the RBI.
2. The RBI lends funds to the commercial banks in times of need.
3. The RBI advises the commercial banks on monetary matters.
Select the correct answer using the codes given below:

Question: The basic aim of Lead Bank Scheme is that

Question: The Reserve Bank of India regulates the commercial banks in matters of
1. Liquidity of assets
2. Branch expansion
3. Merger of banks
4. Winding-up of banks
Select the correct answer using the codes given below.

Question: Priority Sector Lending by banks in India constitutes the lending to

Question: 'Basel III Accord' or simply 'Basel III', often seen in the news, seeks to

Question: With reference to the Indian Renewable Energy Development Agency Limited (IREDA), which of the following statements is/are correct?
1. It is a Public Limited Government Company.
2. It is a Non-Banking Financial Company.
Select the correct answer using the code given below.

Question: What is/are the purpose/purposes of the 'Marginal Cost of Funds based Lending Rate (MCLR)' announced by RBI?
1. These guidelines help improve the transparency in the methodology followed by banks for determining the interest rates on advances.
2. These guidelines help ensure availability of bank credit at interest rates which are fair to the borrowers as well as the banks.
Select the correct answer using the code given below.

Question: With reference to 'Financial Stability and Development Council', consider the following statements:
1. It is an organ of NITI Aayog.
2. It is headed by the Union Finance Minister.
3. It monitors macroprudential supervision of the economy.
Which of the statements given above is/are correct?

Question: Which of the following statements best describes the term 'Scheme for Sustainable Structuring of Stressed Assets (S4A)', recently seen in the news?

Question: Consider the following statements:
1. Capital Adequacy Ratio (CAR) is the amount that banks have to maintain in the form of their own funds to offset any loss that banks incur if the account-holders fail to repay dues.
2. CAR is decided by each individual bank.
Which of the statements given above is/are correct?

Question: With reference to the governance of public sector banking in India, consider the following statements:
1. Capital infusion into public sector banks by the Government of India has steadily increased in the last decade.
2. To put the public sector banks in order, the merger of associate banks with the parent State Bank of India has been affected.
Which of the statements given above is/are correct?

Question: The Service Area Approach was implemented under the purview of

Question: Which of the following is not included in the assets of a commercial bank in India?

Question: What was the purpose of Inter-Creditor Agreement signed by Indian banks and financial institutions recently?

Question: The Chairmen of public sector banks are selected by the

Question: Consider the following statements:
1. In terms of short-term credit delivery to the agriculture sector, District Central Cooperative Banks (DCCBs) deliver more credit in comparison to Scheduled Commercial Banks and Regional Rural Banks.
2. One of the most important functions of DCCBs is to provide funds to the Primary Agricultural Credit Societies.
Which of the statements given above is/are correct?

Question: What is the importance of the term 'Interest Coverage Ratio' of a firm in India?
1. It helps in understanding the present risk of a firm that a bank is going to give loan to.
2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to.
3. The higher a borrowing firm’s level of Interest Coverage Ratio, the worse is its ability to service its debt.
Select the correct answer using the code given below:

Question: Consider the following statements:
1. The Governor of the Reserve Bank of India (RBI) is appointed by the Central Government.
2. Certain provisions in the Constitution of India give the Central Government the right to issue directions to the RBI in public interest.
3. The Governor of the RBI draws his power from the RBI Act.
Which of the above statements are correct?

Question: With reference to ‘Urban Cooperative Banks’ in India, consider the following statements:
1. They are supervised and regulated by local boards set up by the State Governments.
2. They can issue equity shares and preference shares.
3. They were brought under the purview of the Banking Regulation Act, 1949 through an Amendment in 1966.
Which of the statements given above is/are correct?

Question: Which one of the following effects of creation of black money in India has been the main cause of worry to the Government of India?

Question: With reference to the 'Banks Board Bureau (BBB)', which of the following statements are correct?
1. The Governor of RBI is the Chairman of BBB.
2. BBB recommends for the selection of heads for Public Sector Banks.
3. BBB helps the Public Sector Banks in developing strategies and capital raising plans.
Select the correct answer using the code given below:

Question: Consider the following statements:
1. In India, Non-Banking Financial Companies can access the Liquidity Adjustment Facility window of the Reserve Bank of India.
2. In India, Foreign Institutional Investors can hold the Government Securities (G-Secs).
3. In India, Stock Exchanges can offer separate trading platforms for debts.
Which of the statements given above is/are correct?

Question: With reference to the rule/rules imposed by the Reserve Bank of India while treating foreign banks, consider the following statements:
1. There is no minimum capital requirement for wholly owned banking subsidiaries in India.
2. For wholly owned banking subsidiaries in India, at least 50% of the board members should be Indian nationals.
Which of the statements given above is/are correct?

Question: Consider the following statements:
Statement-I: Syndicated lending spreads the risk of borrower default across multiple lenders.
Statement-II: The syndicated loan can be a fixed amount/lump sum of funds, but cannot be a credit line.
Which one of the following is correct in respect of the above statements?
[Note: This question was cancelled by UPSC in the official final answer key, and marks were awarded to all candidates.]

Question: Which of the following are the sources of income for the Reserve Bank of India?
I. Buying and selling Government bonds
II. Buying and selling foreign currency
III. Pension fund management
IV. Lending to private companies
V. Printing and distributing currency notes
Select the correct answer using the code given below.

Question: Which of the following statements about M1xchange’s role in Micro, Small & Medium Enterprises (MSMEs) financing is/are correct?
1. M1xchange provides collateral based loans to MSMEs.
2. M1xchange facilitates discounting of invoices and Bills of Exchange for MSMEs.
3. M1xchange functions as a credit rating agency for MSMEs.
Select the answer using the code given below:

Question: Which of the following statements about insurance in aviation sector is/are correct?
1. ‘Aviation Hull Insurance’ covers the physical aircraft, including the body, engine, and on-board equipment.
2. Under the Montreal Convention, adopted in 1999 by over 130 countries, including India, airlines are strictly liable to pay compensation to the family/nominee of every deceased passenger without requiring the family to prove fault.
Select the answer using the code given below:

Question: With reference to different Committees in India, consider the following details:
Sl. No. | Committee | Objective | Organization under which it was formed
1. R.N. Malhotra Committee | Comprehensive reforms of Insurance sector in India | Insurance Regulatory and Development Authority of India
2. L.C. Gupta Committee | Preparing a roadmap for the introduction of derivatives trading in India | Securities and Exchange Board of India
3. Urjit R. Patel Committee | Preparing a roadmap for reforming bank lending to the Housing sector | Reserve Bank of India
4. Y.H. Malegam Committee | Preparing a roadmap for reforms in Microfinance sector in India | Reserve Bank of India
In which of the above rows are all the details correctly matched?

Question: Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India:
1. NBFCs cannot accept demand deposits.
2. All the NBFCs operating in India have to be registered with the RBI.
3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself.
4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs.
Which of the statements given above is/are correct?