Banking Awareness for Upcoming Exams Set 7

This set contains banking awareness questions for various upcoming exams like SBI PO, IBPS PO, Clerk and insurance exams.

1. The setting up of White Label ATMs is authorized under which Act?
   A) Banking Regulation Act,1949
   B) Payment and Settlement Systems Act, 2007
   C) Reserve Bank of India Act,1934
   D) Negotiable Instrument Act, 1881
   
   View Answer

   Option B
   Explanation: ATMs setup and owned by non-banks are called White Label ATMs. Non-bank ATM operators are authorized under PSS Act 2007.
2. Dishonour of cheque is covered in ____ of Negotiable instruments Act, 1881.
   A) Section 21
   B) Section 126
   C) Section 134
   D) Section 138
   
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   Option D
   Explanation: Dishonour of Cheque is defined in Section 138 of the Negotiable instruments Act
3. What does T stands for in CTS?
   A) Transfer
   B) Truncation
   C) Transmit
   D) Time
   
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   Option B
   Explanation: CTS- Cheque Truncation System. CTS is an electronic method of clearing the cheque without the need for sending physical cheque. Rather the electronic image of cheque is send online at the destination.
4. Indo-Nepal Remittance Facility comes under which type of transfer mechanism?
   A) RTGS
   B) NEFT
   C) IMPS
   D) None of These
   
   View Answer

   Option B
   Explanation: Indo-Nepal Remittance Facility is a cross border remittance scheme to transfer funds from India to Nepal, enabled under the NEFT scheme.
5. Under Indo-Nepal Remittance Facility what is the maximum number of times in a year that a person can remit money to Nepal?
   A) 10
   B) 12
   C) 15
   D) No such limit
   
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   Option B
   Explanation: An originator in India is allowed to remit a maximum of 12 remittances in a year under the scheme.
6. The promoter’s minimum initial contribution to the paid-up equity capital of small finance bank should be at least _____ per cent.
   A) 60 %
   B) 40 %
   C) 20 %
   D) 10 %
   
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   Option B
   Explanation: The promoter’s minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent and gradually brought down to 26 per cent within 12 years from the date of commencement of business of the bank.
7. The small finance banks will be required to extend ____ per cent of its Adjusted Net Bank Credit (ANBC) to Priority Sector?
   A) 50%
   B) 75%
   C) 25%
   D) 10%
   
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   Option B
   Explanation: The small finance banks will be required to extend 75 per cent of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank.
8. Which of the following is not a valid tenor of T-bills in India?
   A) 91 days
   B) 182 days
   C) 364 days
   D) 45 days
   
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   Option D
   Explanation: Presently in India T-bills are issued for 91, 182,264 days (issued by GOI, managed by RBI)
9. What is the minimum amount for which T-bills can be issued?
   A) Rs 10,000
   B) Rs 25,000
   C) Rs 50,000
   D) Rs 1,00,000
   
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   Option B
   Explanation: Rs 25,000 and its multiple.
10. What is the full form of NDS?
    A) Negotiated Dynamic System
    B) Negotiated Dealing System
    C) National Dealers System
    D) national Dynamic System
    
    View Answer

    Option B
    Explanation: Negotiated Dealing System (NDS) is an electronic platform for facilitating dealing in Government Securities and Money Market Instruments.