Quiz on Banking Awareness

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Number of Questions: 10

1. Which of the given is an 11 digit alphanumeric code that facilitates electronic funds transfer in India?
   A) IFSC
   B) MICR
   C) UTR
   D) ISIN
   
   View answer

   Option A
2. What should be the minimum net owned fund of Non-banking Financial companies (NBFCs) to get registered with the RBI?
   A) Rs 10 crore
   B) Rs 1 crore
   C) Rs 5 crore
   D) Rs 2 crore
   
   View answer

   Option D
   Explanation: It should have a minimum net owned fund of Rs 200 lakh.
3. Define Base Rate?
   A) Minimum amount of deposit that the commercial banks have to hold as reserves with the central bank
   B) Rate charged by the central bank for lending funds to commercial banks. 
   C) Minimum rate set by the RBI below which banks are not allowed to lend to its customers. 
   D) Rate at which short term funds are borrowed and lent in the money market. 
   
   View answer

   Option C
4. What is the maximum amount that can be deposited under Sukanya Samriddhi Accounts Scheme in a particular financial year?
   A) Rs 1,00,000
   B) Rs 1,50,000
   C) Rs 50,000
   D) Rs 2,00,000
   
   View answer

   Option B
5. Treasury Bills are not available in which of the following tenors?
   A) 364 days
   B) 182 days
   C) 91 days
   D) 7 days
   
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   Option D
   Explanation:91 day, 182 day and 364 day
6. The Benchmark Prime Lending Rate system has been replaced by the Base Rate mechanism wef____________
   A) July 1,  2010 
   B) July 1,  2000
   C) July 1,  2004
   D) July 1,  2008
   
   View answer

   Option A
7. In MSME, a medium enterprise is defined as one where the minimum and maximum investment in equipment ranges between___________ respectively.
   A) Rs 1-2 crore
   B) Rs 2-5 crore
   C) Rs 3-5 crore
   D) Rs 1-5 crore
   
   View answer

   Option B
   
8. Which of the given rating agencies is based in Gurugram?
   A) CRISIL
   B) CARE Ratings
   C) ICRA Limited
   D) India Ratings and Research (Ind-Ra)
   
   View answer

   Option C
9. SFMS is a secure messaging system to serve as a platform for intra-bank and inter-bank applications. What does S stands for in SFMS?
   A) Structured 
   B) Systematic
   C) Society
   D) System
   
   View answer

   Option A
   Explanation: Structured Financial Messaging System (SFMS) is a secure messaging standard developed to serve as a platform for intra-bank and inter-bank applications. It is an Indian standard similar to SWIFT (Society for World-wide Interbank Financial Telecommunications) which is the international messaging system used for financial messaging globally.
10. Which of the following statements about ‘Basic Savings Bank Deposit Account’ (BSBDA) is correct?
    A) A holders of ‘BSBDA’ Account in a bank cannot open any other savings account in that bank.
    B) Maximum balance in the account should not exceed Rs 50,000 at any time
    C) Total credits in ‘BSBDA’ accounts should not exceed Rs 1 lakh in a year.
    D) All are correct
    
    View answer

    Option D
    Explanation: The total of debits by way of cash withdrawals and transfers will not exceed ten thousand rupees in a month. Small accounts are valid for a period of 12 months initially which may be extended by another 12 months if the person provides proof of having applied for an Officially Valid Document.

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