Banking Awareness -RBI, SBI, PO, IBPS Exam – September Set 2 2019 – Free PDF Download

Q) The Reserve Bank of India has proposed a minimum equity capital of Rs ______ crore to set up a small finance bank (SFB) under the ‘on tap’ licence regime?
A. Rs 100 crore
B. Rs 150 crore
C. Rs 200 crore
D. Rs 250 crore

• Write a short note on “On Tap” Licensing Policy?
• USA, setting up new banks – Super Easy
  USA – more than 2,000 banks opened between 1990 and 2008
• 2008 – Recession 2008 to 2013 = Only 7 Banks, Strict guidelines
• India Victim of Old thinking Just two banks — Kotak Mahindra Bank and YES Bank in 10 years Only 23 banks since the economic liberalization in 1991.
• Then came Batman Raghuram Rajan Free Market Strategy Promoting Competition is the key 2014 – Bandhan Bank + IDFC
• Guidelines for ‘on tap’ licensing of SFBs in the private sector
• Existing (NBFCs), Payments banks, micro finance institutions and local area banks in the private sector, which are controlled by residents, can opt for conversion into small finance banks.
• Apply anytime throughout the YEAR
• Resident individuals/professionals with ten years of experience in banking and finance; and companies and societies owned and controlled by residents running the business for at least five years are eligible as promoters to set up SFB.
• 75 per cent of loans to the priority sector
• at least 50 per cent of loans up to ₹25 lakh.
• They will also have to comply with cash reserve (CRR) and statutory liquidity (SLR) requirements
• The on-tap guidelines however set a higher capital requirement of Rs 200 crore (Rs 100 crore earlier) and have a different promoter exit timeline.
• The objectives of setting up of SBFs is to further financial inclusion and supply of credit “through high technology-low cost operations“.
• Further, in view of the inherent risk of an SFB, it shall be required to maintain a minimum capital adequacy ratio of 15 per cent of its risk weighted assets (RWA) on a continuous basis.
• The promoters should hold a minimum of 40 per cent of the paid-up voting equity capital of the bank, which would remain locked in for five years from the date of commencement of the bank’s business.
• However, after the SFB reaches the net worth of Rs 500 crore, listing will be mandatory within three years of reaching that net worth.

Challenges in SFB

• Of the ten players who have been granted SFB licence by the RBI, eight were MFIs. This helped them meet the RBI’s lending norms (75 per cent to priority sector etc.)
• For any new player, say payments bank, replicating the door-to-door delivery model of MFIs to deliver credit to the weaker sections can be a challenge.

Challenges in SFB

• Even if a broader reach in rural areas helps some players in ramping up lending activity, doing so in a profitable manner (MFIs have been able to do so in a cost-effective way and by generating strong returns) will be critical.
• The key challenge, however, lies in ramping up low-cost retail deposits to improve profitability. Many existing small finance banks continue to offer high-interest rates to draw in deposits and rely heavily on bulk deposits. Hence scaling up low-cost deposits will be a key challenge for new players opting to apply for the small finance bank.
• Main differences between payments bank and SFB
• Payment Bank – Maximum 1 lakh deposit per account SFB – No limit
• Payment Bank – Can’t Lend
• SFB – Can lend but focus has to be on small lending, 75% lending to priority sector and 50% lending <25 lakh
• Payment Bank – Remittance services SFB – Remittance services + Credit Cards
• Both SFB & PB can issue Debit/ATM cards
• Both can distribute 3rd party products like mutual funds, insurance

Q) Ministry of Commerce & Industry through Export Credit Guarantee Corporation (ECGC) has introduced which Export Credit Insurance Scheme (ECIS)?
A. NIRVIK
B. ABHIK
C. VINIT
D. ABHIR

• Ministry of Commerce & Industry through Export Credit Guarantee Corporation (ECGC) has introduced a new Export Credit Insurance Scheme (ECIS) called NIRVIK to enhance loan availability and ease the lending process for exporters.
• Under the new ‘NIRVIK’ scheme(Niryat Rin Vikash Yojana), which is also called the Export Credit Insurance Scheme (ECIS), the insurance cover guaranteed will cover up to 90 percent of the principal and interest. The insurance cover will include both pre and post-shipment credit.
• The Export Credit Guarantee Corporation of India (ECGC) currently provides credit guarantee of up to 60 percent loss.

Q) The president of the Asia Development Bank, Takehiko Nakao, has planned to step down from the post early next year on January 16, 2020. Where is the HQs of ADB located? (Next – Masatsugu Asakawa?)
A. Singapore
B. China
C. Japan
D. Philippines

Q) Which Payments Bank has launched ‘Bharosa savings account‘?
A. Airtel Payments Bank
B. India Post Payments Bank
C. Fino Payments Bank
D. Paytm Payments Bank

• Airtel Payments Bank launches Bharosa savings account scheme
• It enables customers to withdraw cash, check their balance or access a mini statement of their account at over 6,50,000 Aadhaar-enabled payment system (AePS) enabled outlets across India.
• It also lets you open a savings account with just ₹500 minimum monthly balance.
• ₹5 lakh personal accident insurance on maintaining balance of ₹500.

Q) The government has approved ________ % interest rate on employees provident fund for 2018-19?
A. 8.55%
B. 8.65%
C. 8.75%
D.8.60%

Q) As per Finance Minister, no stressed MSME will be declared as NPA till ___________?
A.November 30, 2019
B. January, 2020
C.December 31, 2019
D.March 31, 2020

Q) Public Sector Banks will organise ‘loan melas’ or “Shamiana meetings” in how many districts to provide loans to NBFCs and retail borrowers?
A. 200
B. 300
C. 400
D. 600

• To boost liquidity in the economy, credit “Shamiana meetings” in 400 districts beginning October 3 to provide loans to NBFCs and retail borrowers, including homebuyers and farmers.
• “PSBs will focus on giving loans to the ‘RAM’ category — retail, agriculture and MSMEs,” The idea is to ensure maximum credit disbursal during the festive season.

Q) What is the GDP growth rate predicted by the Organisation for Economic Co-operation and Development (OECD) for India for 2019- 20 (FY20)?
A. 5.3%
B. 6.2%
C. 5.9%
D. 6.1%

Q) The Government of India has announced a significant reduction in corporate tax rate for domestic company to _________%?
A. 15 %
B. 27 %
C. 22 %
D.18 %

• Government reduces corporate tax rate to 22%
• New companies incorporated after 01 Oct 2019 to attract 15% corporate tax rate
• The Government of India has announced a significant reduction in corporate tax rate for domestic company to 22%, if they do not seek any exemption or incentives.
• Such companies are also not required to pay Minimum Alternative Tax.

Q) Alison Rose has been appointed as the Chief Executive Officer of which of these banks?
A. Royal Bank of Scotland
B. Bank of America
C. Royal Bank of Canada
D. Bank of China

Q) Bank of Baroda has launched an agri digital platform named “what”?
A. Baroda Kisan
B. Baroda Sinchai
C. Baroda Krishi
D. Baroda Agri

Q) Who is the MD and CEO of Federal Bank?
A. Rakesh Sethi
B. Shyam Srinivasan
C. Rajiv B. Lall
D. Amitabh Chaudhry

Q) Securities and Exchange Board of India has imposed a penalty of over Rs 22 crore on which Pharma company and its promoters on insider trading charges?
A. Aurobindo Pharma Limited
B. Sun Pharmaceutical
C. Lupin Limited
D. Cipla Limited

Q) Who has been appointed as the new chairman of the Association of Mutual Funds in India (AMFI)?
A. Saurabh Nanavati
B. Nilesh Shah
C. Aman Singh
D. Kushal Verma

• Nilesh Shah, Managing Director of Kotak Asset Management Company (AMC), has been appointed as the new chairman of the Association of Mutual Funds in
  India (AMFI)
• The AMFI also elected Saurabh Nanavati, Chief Executive Officer, Invesco Mutual Fund as the vice-chairman of AMFI, for a period of one year.
• AMFI was incorporated on August 22, 1995, as a nonprofit organisation.
• As of now, all the 44 asset management companies that are registered with Sebi, are its members.

Q) Kristalina Georgieva who has been selected as the  new head of the International Monetary Fund(IMF) hails from which country?
A. Germany
B. Bulgaria
C. Sweden
D. United States

Q) Payment technology company Visa has appointed whom as its Brand Ambassador?
A. PV Sindhu
B. Mary Kom
C. Saina Nehwal
D. Hima Das

Q) Which bank has launched a Preventive Vigilance (PV) portal to check procedural lapses and promote good practices?
A. Bank of Baroda
B. Punjab National Bank
C. State Bank of India
D. Canara Bank

• PNB Launches Preventive Vigilance Portal
• Punjab National Bank has launched a Preventive Vigilance (PV) portal to check procedural lapses and promote good practices.
• The PV portal is the first of its kind technology based solution to facilitate all staff members to check procedural lapses and unhealthy practices and promote coherent climate conducive to banking for the modern age.

Q) Green Bonds named FX piles has been launched by which bank?
A. World Bank
B. Asian Development Bank
C. Bank of International Settlements
D. New Development Bank

• BIS sets up ‘green’ bond fund for central banks – FX piles
• The Bank of International Settlements has launched a fund to enable central banks around the world to invest in “green bonds” which is named FX piles.
• The new fund would help “central banks to incorporate environmental sustainability objectives in the management of their reserves.
• It is an open-ended fund and is denominated in US dollars.

Q) Which among the following has been ranked No. 1 for a sixth consecutive year in the BrandZ Top 75 Most Valuable Indian Brands ranking?
A. HDFC Bank
B. LIC
C. TCS
D. SBI

• There is also 6% increase in the overall brand value at $228.2 billion.

BrandZ Top 5 Most Valuable Indian Brands 2019

1. HDFC Bank – USD 22,705 million
2. LIC – USD 20,134 million
3. TCS – USD 18,161 million
4. Airtel – USD 10,286 million
5. SBI – USD 8,408 million

Q) Which bank has become the first Indian bank to have a branch in the Australian state of Victoria?
A. Bank of Baroda
B. State Bank of India
C. Axis Bank
D. Yes Bank

• SBI becomes first Indian bank to have office in Australia’s Victoria
• The State Bank of India opened its Melbourne office and becoming the first Indian bank to have a branch in the Australian state of Victoria.

Q) Ministry of Finance has launched which Number system of the Central Board of Direct Taxes (CBDT) on 1 October 2019?
A. Taxation
B. Documentation
C. Audit
D. Electronic

• Government launched the DIN system of CBDT
• Ministry of Finance has launched the Documentation Identification Number (DIN) system of the Central Board of Direct Taxes (CBDT) on 1 October 2019.
• On the day of launching, about 17,500 communications with DIN were generated. DIN system has been created as per the direction of Finance Minister Ms. Nirmala Sitharaman. The introduction of DIN will make every CBDT communication to have a documentation identification number.
• The DIN system is expected to ensure greater accountability and transparency in tax administration.

Provisions of DIN:

• Any communication from the Income Tax (IT) Department without a computer-generated DIN, including notice, letter, order and summon or any other correspondence, would be invalid.
• All communications with DIN will be verified on the e-filing portal

Q) Who has been appointed as Executive Director for India at International Monetary Fund for a period of three years?
A. Subir Gokarn
B. Abhijit Banerjee
C. Surjit Bhalla
D. Avinash Dixit

Q) All Public Sector Banks in India to have Uniform timings across all states from which date?
A. October 1, 2019
B. November 1, 2019
C. December 1, 2019
D. January 1, 2020

• New directive issued by the Indian Department of Financial Services
• Under the new rule, the customer banking hours will be between 10:00 am to 4:00 pm in all public sector banks from October 1.
• However, the only exception to this rule will be Madhya Pradesh (10:30-4:30) , Mizoram (9:00-3:00) and Nagaland (9:00-3:00).
• The lunch time will be from 2:00 pm to 2:30 pm, irrespective of business timings.

Q) Who has been appointed as the MD and CEO of Punjab National Bank?
A. SS Mallikarjuna Rao
B. Sunil Mehta
C. Rakesh Sharma
D. Padmaja Chunduru

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