Important Codes and Numbers Questions and Answers

Answer: C

Correct answer: Fund

AMFI is the Association of Mutual Funds in India, the industry body of Indian mutual funds. It sets the AMFI certification for distributors and publishes the daily NAV and monthly industry data.

Answer: C

Correct answer: Offer

NFO is a New Fund Offer: the period in which a mutual fund scheme is launched and units are sold to investors for the first time, usually at a fixed price of ₹10 per unit.

Answer: C

Correct answer: HDFC Bank

HDFC Bank acquired Centurion Bank of Punjab in 2008 in an all-share deal - at the time the largest merger in Indian private banking - adding around 400 branches to its network.

Answer: A

Correct answer: Rs. 5 Crore

Paragraph 4.5 of the RBI Master Directions on Prepaid Payment Instruments requires a non-bank entity applying for authorisation to show a minimum positive net worth of ₹5 crore in its latest audited balance sheet, certified by a chartered accountant, and to hold that level at all times while the application is considered. The larger figure of ₹15 crore is a later obligation rather than the entry test: it must be reached by the end of the third financial year after final authorisation and maintained from then on. The question asks what an entity needs at the point of seeking approval, so ₹5 crore is the applicable figure.

Answer: C

Correct answer: NPCI

The RBI authorised NPCI as the Bharat Bill Payment Central Unit. The BBPCU sets the standards and rules of the Bharat Bill Payment System and handles clearing and settlement between the operating units that face customers and billers.

Answer: C

Correct answer: Mumbai

NPCI is headquartered at Mumbai, Maharashtra.

Answer: D

Correct answer: Narasimham -II Committee

The Narasimham Committee II (1998), on banking sector reforms, recommended merging strong banks into a small number of large banks of international size, along with higher capital adequacy and tighter asset classification. Narasimham I (1991) had dealt with the broader structure of the financial system.

Answer: D

Correct answer: Rs. 3000

A PPI-MTS - the prepaid card issued by a mass transit system operator, such as a metro travel card - may hold at most ₹3,000. It is exempt from full KYC precisely because the balance is small and its use is confined to the transit system and its allied services.

Answer: D

The Imperial Bank of India came into existence on 27 January 1921 by J.M. Keynes. When the three Presidency Banks of colonial India, were reorganised and amalgamated to form a single banking entity. The three Presidency banks were the Bank of Bengal, the Bank of Bombay and the Bank of Madras

Answer: C

Correct answer: SBI

State Bank of India was the first Indian bank to open a branch in Myanmar, at Yangon. SBI has the largest overseas network of any Indian bank, which is why it is usually the first Indian bank into a newly opened market.