Subsidiaries — Set 2
Banking · सहायक कंपनियां · Questions 11–20 of 50
In a Section 8 company like RBIH, what happens to the profit earned by the subsidiary?
Correct Answer: C. Reinvested to promote the company's objectives
A Section 8 company is a non-profit entity that must use its profits to further its specific charitable or social goals. For RBIH, any surplus is used to drive more innovation and research in the financial technology sector. It cannot pay dividends to its shareholders, which in this case is the RBI.
Which RBI subsidiary was established with the specific goal of promoting 'Responsible Financial Innovation'?
Correct Answer: D. RBIH
The Reserve Bank Innovation Hub (RBIH) was set up to promote responsible and sustainable innovation in the fintech space. It acts as a bridge between the regulator, the industry, and the academic world. This helps in the development of inclusive financial products for the masses.
Who is the ex-officio Chairman of the DICGC?
Correct Answer: D. A Deputy Governor of RBI
The Deputy Governor of the RBI in charge of the Department of Banking Regulation usually serves as the Chairman of DICGC. This maintains a close supervisory link between the central bank and the insurance entity. The board consists of representatives from the RBI and the government.
What is the primary role of BRBNMPL in the Indian economy?
Correct Answer: C. Maintaining currency supply and quality
BRBNMPL plays a vital role in ensuring the continuous supply of high-quality banknotes in various denominations. It uses advanced security features to prevent counterfeiting and maintains the integrity of the currency. This is a critical sovereign function delegated by the RBI to its subsidiary.
The subsidiary ReBIT serves which of the following as its primary client?
Correct Answer: C. Reserve Bank of India
The correct answer is 'Reserve Bank of India'. ReBIT is a 'captive' subsidiary, meaning its primary and almost exclusive client is its parent organization, the RBI. It was created to solve the challenge of recruiting high-end IT talent within traditional government structures. This setup allows the RBI to have dedicated and agile IT support.
Which city hosts the corporate office of Indian Financial Technology and Allied Services (IFTAS)?
Correct Answer: A. Mumbai
IFTAS is located in Mumbai, which is the financial capital and the primary seat of the RBI. Being in Mumbai allows IFTAS to coordinate closely with major commercial banks and financial institutions. It operates the Indian Financial Network (INFINET) from this location.
Does DICGC cover deposits held in foreign branches of Indian banks?
Correct Answer: D. No, it only covers deposits in India
DICGC insurance is limited to bank branches located strictly within the territory of India. Deposits held in overseas branches of Indian banks are not protected by this Indian subsidiary. Such deposits are usually subject to the insurance laws of the host country.
Which of the following describes the relationship between RBI and BRBNMPL?
Correct Answer: B. Wholly owned subsidiary
BRBNMPL is a wholly owned subsidiary, meaning the RBI owns 100% of its equity capital. This allows the RBI to have total control over the strategic direction and security of banknote production. It operates under the guidance of a board of directors appointed by the RBI.
Which subsidiary was created to foster the 'Start-up' culture in the Indian financial sector?
Correct Answer: B. RBIH
The Reserve Bank Innovation Hub (RBIH) was specifically designed to collaborate with the startup ecosystem to solve financial challenges. It identifies promising technologies and helps scale them within the regulatory framework. This initiative supports the broader 'Startup India' vision through a financial lens.
What happens if a bank is unable to pay the premium to DICGC for deposit insurance?
Correct Answer: C. The bank must pay interest on the delayed amount
If a bank defaults on premium payments, DICGC charges interest on the overdue amount to enforce compliance. The insurance coverage for depositors remains active as long as the bank is registered with the corporation. However, persistent failure to pay can lead to regulatory action by the RBI against the bank.