First In India Questions and Answers

Answer: A

To facilitate an ordinance published for providing the requisite statutory provisions in the State Bank of India Act, 1955, the Government appointed 29 June as the date for transfer of stake. On the same principle, the Government also acquired RBI's shareholding in National Housing Bank (NHB) and NABARD. The Reserve Bank holds a 72.5% stake in NABARD and 100% stake in NHB.
 

Answer: B

At the end of 1974, the central bank governors of the G10 countries established a Committee on Banking Regulations and Supervisory Practices. The Committee was designed as a forum for regular cooperation between its member countries on banking supervisory matters.

Answer: A

Correct answer: Basel III norms

Indian banks have been on the Basel III framework since 1 April 2013, phased in fully by 2019, and it is what governs their risk management today. Basel III followed the 2008 financial crisis and tightened the definition of capital, raised the minimum ratios, added a capital conservation buffer and a countercyclical buffer, and introduced leverage and liquidity requirements that Basel II had lacked. Basel I and II are superseded, and Solvency II is the corresponding framework for insurers, not banks.

Answer: C

The Indian Financial System Code (IFSC Code) is an alphanumeric code that uniquely identifies a bank-branch participating in the Real Time Gross Settlement (RTGS) and the National Electronic Funds Transfer (NEFT) Systems.

Answer: A

The Reserve Bank of India (RBI) notified the draft regulations relating to the Credit Information Companies (Regulation) Act, 2005 on April 5, 2006. Among the major features of the regulations is the inclusion of stock brokers and telecommunication companies in the category of 'specified users' of services of credit information companies. It is expected that there will be a boost to the development of credit, based on a more reliable information base, once the regulations are finalised.

Answer: A

Correct answer: 1750 BC

The earliest recorded insurance arrangements appear in the Code of Hammurabi, about 1750 BC, under which a Babylonian merchant receiving a loan for a shipment paid an additional sum for the lender’s agreement to cancel the debt if the cargo were lost or stolen - a bottomry contract, and recognisably marine insurance. The practice passed from Babylon to the Phoenicians, the Greeks and the Romans.

Answer: C

The Reserve Bank of India, as the central bank of the country, functions as the sole bank with the right of issuing paper notes, it acts as banker to the Government, it is the banker to other bank and it regulates the flow of credit.
 

Answer: C

The New Bank of India which was running at a loss was united with the Punjab National Bank in September 1993. 19 nationalised banks along with the State Bank of India, which was nationalised in 1956, now constitute the public sector banks.

Answer: D

Subsequent to the issue of guidelines in January 1993 for the entry of new private sector banks, the RBI granted approval for the setting up of 13 new privately owned domestic banks. Out of these, 10 have already started functioning. These include UTI Bank Ltd. (Registered Office: Ahmedabad); IndusInd Bank Ltd. (Pune); ICICI Bank Ltd. (Baroda); (iv) Global Trust Bank Ltd. (Secunderabad); (v) HDFC Ltd. (Mumbai); Centurion Bank Ltd. (amalgamated with the HDFC Bank in 2008) (Panaji); Bank of Punjab Ltd. (Chandigarh); Times Bank Ltd. (Faridabad); IDBI Bank Ltd. (Indore); Development Credit Bank Ltd. (Mumbai)

Answer: C

The nationalisation of general insurance business from 1 Jan 1973, was the effect of the General Insurance Business (Nationalisation) Act. 107 insurers were grouped into four companies: National Insurance Company, the New India Assurance Company, the Oriental Insurance Company and the United India Insurance Company.