Monday, 19 June 2017

Banking Awareness Questions For NICL AO Mains Exam 2017

Banking Awareness Questions For NICL AO Mains Exam 2017

Q1. Who among the following regulates the Indian Corporate Debt Market?
(a) RBI
(b) NABARD
(c) SIDBI 
(d) SEBI
(e) PFRDA
S1. Ans.(d)
Sol. Regulator for the Indian Corporate Debt Market is the Securities and Exchange Board of India (SEBI). SEBI controls the bond market and corporate debt market in cases where entities raise money from the public through public issues.

Q2. _______ is integrated bill payment systems which will offer interoperable bill payment service to customers online as well as through a network of agents on the ground.
(a) BBPS
(b) IMPS
(c) AEPS
(d) APBS
(e) None of the given options is true
S2. Ans.(a)
Sol. The Bharat Bill Payment System (BBPS) is a RBI mandated system which will offer integrated and interoperable bill payment services to customers across geographies with certainty, reliability and safety of transactions.

Q3. To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval/authorisation to Reserve Bank of India under ________
(a) Payment and Settlement Systems (PSS) Act 2007
(b) Foreign Exchange Management Act, 1999
(c) Banking Regulation Act, 1949
(d) SARFAESI Act, 2002
(e) None of the given options is true
S3. Ans.(a)
Sol. To become BBPOUs, Banks and non-bank entities are mandatorily required to apply for approval/authorisation to Reserve Bank of India under Payment and Settlement Systems (PSS) Act 2007. Bharat Bill Payment Operating Units (BBPOUs) will be the authorised operational units.
Q4. Which of the following will function as the Bharat Bill Payment Central Unit (BBPCU), single authorised entity operating the BBPS?
(a) RBI
(b) NPCI
(c) GOI
(d) SEBI
(e) NABARD
S4. Ans.(b)
Sol. National Payments Corporation of India (NPCI) will function as the authorised Bharat Bill Payment Central Unit (BBPCU), which will be responsible for setting business standards, rules and procedures for technical and business requirements for all the participants. NPCI, as the BBPCU, will also undertake clearing and settlement activities related to transactions routed through BBPS.
Q5. As per the Reserve Bank of India, BBPS will initially accept utility bill payments such as-
(a) Telephone Bill
(b) Electricity Bill
(c) DTH services
(d) All of the Above
(e) None of the given options is true
S5. Ans.(d)
Sol. As per the Reserve Bank of India, BBPS will initially accept utility bill payments such as electricity, water, gas, telephone and direct-to-home services and will later include other repetitive payments including school and university fees and municipal taxes.

Q6. ___________ to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets.
(a) NPCI
(b) SEBI
(c) GOI
(d) RBI
(e) CCIL
S6. Ans.(e)
Sol. The Clearing Corporation of India Ltd. (CCIL) was set up in April 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets. The introduction of guaranteed clearing and settlement led to significant improvement in the market efficiency, transparency, liquidity and risk management/measurement practices in these market along with added benefits like reduced settlement and operational risk, savings on settlement costs, etc.
Q7. _________ will be authorised operational entities, adhering to the standards for facilitating bill payments online as well as through a network of agents, on the ground.
(a) BBPCU
(b) BBPOU
(c) Biller Payment
(d) Creditor
(e) Assets and Liabilities
S7. Ans.(b)
Sol. Bharat Bill Payment Operating Units (BBPOUs) will be authorised operational entities, adhering to the standards set by the BBPCU for facilitating bill payments online as well as through a network of agents, on the ground.
Q8. ___________ a/an electronic trading platform, operated by the Reserve Bank of India, used to facilitate the exchange of government securities and other money market instruments. 
(a) Delivery versus Payment (DvP)
(b) Negotiated Dealing System (NDS)
(c) Risk Mitigation
(d) Competition Commission of India (CCI)
(e) None of the given options is true

S8. Ans.(b)
Sol. Till 2002, the Government securities market was mainly a telephone market. Buyers and sellers traded over the telephone and submitted physical Subsidiary General Ledger (SGL) transfer forms for transfer of the Government securities and cheques for settlement of the funds to the Reserve Bank of India. These manual operations were inefficient and often resulted in delays. In order to improve efficiency in the market, the Reserve Bank of India took steps to automate the process of trading and settlement of Government securities transactions and the Negotiated Dealing System (NDS) was introduced in February 2002.
Q9. The Clearing Corporation of India Ltd. (CCIL) was set up in-
(a) December 2010
(b) February 1995
(c) September 2006
(d) April 2001
(e) March 1999

S9. Ans.(d)
Sol. The Clearing Corporation of India Ltd. (CCIL) was set up in April, 2001 to provide guaranteed clearing and settlement functions for transactions in Money, G-Secs, Foreign Exchange and Derivative markets.

Q10. Which of the following is the mode of settlement of securities wherein the transfer of securities and funds happen simultaneously?
(a) Delivery versus Payment (DvP)
(b) Negotiated Dealing System
(c) Clearing Corporation of India Ltd. (CCIL)
(d) All of the Above
(e) None of the given options is true
S10. Ans.(a)
Sol. Delivery versus Payment (DvP) is the mode of settlement of securities where in the transfer of securities and funds happen simultaneously. This ensures that unless the funds are paid, the securities are not delivered and vice versa. DvP settlement eliminates the settlement risk in transactions.

Q11. How many module/modules have Negotiated Dealing System (NDS)?
(a) Five
(b) One 
(c) Three
(d) Six
(e) Two
S11. Ans.(e)
Sol. The Negotiated Dealing System (NDS) have two modules – one for the primary market and the other for the secondary market.
Q12. The monetary ceiling of the amount for settlement through Lok Adalat is?
(a) 5 lakh
(b) 10 lakh
(c) 15 lakh
(d) 20 lakh
(e) 25 lakh
S12. Ans.(d)
Sol. The monetary ceiling of the amount for settlement through Lok Adalat is INR 20 Lakh.

Q13. EEFC is an account maintained in foreign currency with an Authorised Dealer Category. EEFC stands for- 
(a) Exchange Effective' Foreign Cash Account
(b) Exchange Earners' Financial Currency Account
(c) Exchange Earners' Foreign Core Amount
(d) Electronic Earners' Foreign Currency Account
(e) Exchange Earners' Foreign Currency Account
S13. Ans.(e)
Sol. Exchange Earners' Foreign Currency Account (EEFC) is an account maintained in foreign currency with an Authorised Dealer Category - I bank i.e. a bank authorised to deal in foreign exchange. It is a facility provided to the foreign exchange earners, including exporters, to credit 100 percent of their foreign exchange earnings to the account, so that the account holders do not have to convert foreign exchange into Rupees and vice versa, thereby minimising the transaction costs.
Q14. Under the provisions of Section _______ of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), primary (urban) cooperative banks are required to obtain permission from the Reserve Bank of India for opening branches.
(a) Section 25
(b) Section 45
(c) Section 52
(d) Section 23
(e) Section 35
S14. Ans.(d)
Sol. Under the provisions of Section 23 of the Banking Regulation Act, 1949 (As Applicable to Cooperative Societies), primary (urban) cooperative banks are required to obtain permission from the Reserve Bank of India for opening branches.
Q15. An EEFC account can be held only in the form of a-
(a) Saving Account
(b) Current Account
(c) Recurring Deposit Account
(d) Loan Account
(e) Dematerialised (Demat) Account

S15. Ans.(b)
Sol. An EEFC (Exchange Earners’ Foreign Currency Account) account can be held only in the form of a current account. No interest is payable on EEFC accounts.

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