Current Banking Awareness Quiz – Set 66

Target- SBI PO Mains

Months Covered- November and December 2021

1. The Reserve Bank of India has recently released the Prompt Corrective Action (PCA) Framework for Non-Banking Financial Companies (NBFCs). When will the PCA framework for NBFCs come into effect?
   A) October 1, 2022
   B) April 1, 2022
   C) July 1, 2022
   D) January 1, 2023
   
   View answer

     Option A
   Explanation: The PCA Framework for NBFCs comes into effect from October 1, 2022, based on the financial position of NBFCs on or after March 31, 2022.
2. The Reserve Bank of India has recently introduced Legal Entity Identifier for Cross-border Transactions from the resident entities (non-individuals) undertaking capital or current account transactions above what amount under FEMA, 1999?
   A) Rs 50 crore per annum
   B) Rs 50 crore per transaction
   C) Rs 50 crore per month
   D) Rs 50 crore per day
   
   View answer

     Option B
   Explanation: AD Category I banks, with effect from October 1, 2022, shall obtain the LEI number from the resident entities (non-individuals) undertaking capital or current account transactions of ₹50 crore and above (per transaction) under FEMA, 1999.
3. How many digits are there in Legal Entity Identifier (LEI)?
   A) 16
   B) 15
   C) 21
   D) 20
   
   View answer

   Option D
   Explanation: The Legal Entity Identifier (LEI) is a 20-digit number used to uniquely identify parties to financial transactions worldwide to improve the quality and accuracy of financial data systems.
4. Where is the headquarters of Global Legal Entity Identifier Foundation (GLEIF) located?
   A) Basel, Switzerland
   B) Geneva, Switzerland
   C) Gland, Switzerland
   D) Bern, Switzerland
   
   View answer

   Option A
   Explanation: AD Category-I banks shall have the required systems in place to capture the LEI information and ensure that any LEI captured is validated against the global LEI database available on the website of the Global Legal Entity Identifier Foundation (GLEIF).
5. Which of the following body is recognised as an issuer of LEI by the Reserve Bank under the Payment and Settlement Systems Act, 2007?
   A) LEIL
   B) NPCI
   C) IDRBT
   D) SBI
   
   View answer

   Option A
   Explanation: Legal Entity Identifier India Limited– A Wholly Owned Subsidiary of The Clearing Corporation of India Ltd. acts as a Local Operating Unit (LOU) for issuing globally compatible Legal Entity Identifiers (LEIs) in India.
6. Legal Entity Identifier India Limited is a wholly owned subsidiary of?
   A) RBI
   B) SEBI
   C) CCIL
   D) NPCI
   
   View answer

   Option C
   Explanation: Legal Entity Identifier India Limited– A Wholly Owned Subsidiary of The Clearing Corporation of India Ltd. acts as a Local Operating Unit (LOU) for issuing globally compatible Legal Entity Identifiers (LEIs) in India
7. A Deposit-taking NBFCs (NBFCs-D) with how many branches or more will have to appoint an Internal Ombudsman
   A) 100
   B) 50
   C) 5
   D) 10
   
   View answer

   Option D
   Explanation:
8. Non-Deposit taking NBFCs (NBFCs-ND) having public customer interface will have to appoint an Internal Ombudsman in case its _____ is more than ________.
   A) asset size; Rs 6,000 crore
   B) asset size; Rs.5,000 crore
   C) deposit size; Rs 6,000 crore
   D) deposit size; Rs 5,000 crore
   
   View answer

   Option B
   Explanation: NBFCs fulfilling the following criteria as on date would be required to appoint the IO: a) Deposit-taking NBFCs (NBFCs-D) with 10 or more branches. b) Non-Deposit taking NBFCs (NBFCs-ND) with asset size of Rs.5,000 crore and above and having public customer interface.
9. How many parameters have been defined by RBI for PCA Framework for Scheduled Commercial Banks?
   A) 3
   B) 4
   C) 5
   D) 6
   
   View answer

   Option A
   Explanation: Capital, Asset Quality and Leverage
10. What is the present reverse repo rate?
    A) 3.25%
    B) 3.35%
    C) 4.25%
    D) 4.35%
    
    View answer

    Option B
    Explanation: reverse repo rate under the LAF remains unchanged at 3.35 per cent

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