Banking System, NPA & IBC — Set 3
Economy Advanced · बैंकिंग प्रणाली, NPA और IBC · Questions 21–30 of 160
The Public Provident Fund (PPF) is a long-term investment scheme backed by the Government of India. What is the maturity period for PPF?
Correct Answer: B. 15 years
The correct answer is 15 years. The PPF has a maturity period of 15 years. It offers tax benefits and guaranteed returns, making it a popular savings scheme for individuals. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The National Pension Scheme (NPS) is a voluntary retirement savings scheme in India. Which organization administers NPS?
Correct Answer: B. PFRDA
The correct answer is PFRDA. The Pension Fund Regulatory and Development Authority (PFRDA) was established to regulate and administer NPS. It manages all aspects of the NPS scheme. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
Digital banking includes online banking, mobile banking, and payment wallets. Which bank launched the first mobile banking app in India?
Correct Answer: B. ICICI Bank
The correct answer is ICICI Bank. ICICI Bank launched the first mobile banking app in India. Digital banking has since become the norm with multiple banks offering comprehensive mobile solutions. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Pradhan Mantri Jan Dhan Yojana (PMJDY) aims to provide banking services to all citizens. In which year was PMJDY launched?
Correct Answer: B. 2014
The correct answer is 2014. PMJDY was launched in 2014 by Prime Minister Narendra Modi. It has successfully opened millions of bank accounts and provided financial inclusion to unbanked populations. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Credit Information Bureau (India) Limited (CIBIL) maintains credit information of individuals and businesses. What data does CIBIL primarily maintain?
Correct Answer: B. Credit history
The correct answer is Credit history. CIBIL maintains comprehensive credit information including loan history, repayment records, and credit behavior. This data is crucial for lending decisions. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Reserve Bank of India issues currency notes of various denominations. Which denomination of note was withdrawn from circulation in 2016?
Correct Answer: C. Rs. 1000
The correct answer is Rs. 1000. The Rs. 1000 note was demonetized in November 2016 as part of the government's demonetization initiative to combat black money and counterfeit currency. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Reserve Bank of India maintains foreign exchange reserves. Which is the largest component of India's forex reserves?
Correct Answer: B. Foreign currency assets
The correct answer is Foreign currency assets. Foreign currency assets comprise the largest portion of India's forex reserves, followed by gold reserves. These are crucial for maintaining external stability. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Marginal Standing Facility (MSF) is a facility provided by RBI to banks in times of liquidity stress. What is the rate of MSF relative to the Repo rate?
Correct Answer: B. 1% higher than Repo rate
The correct answer is 1% higher than Repo rate. The MSF rate is 1% higher than the Repo rate. It serves as a safety valve for the banking system during times of acute liquidity shortage. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Standing Deposit Facility (SDF) was introduced by RBI in April 2023. What is its primary purpose?
Correct Answer: B. To absorb liquidity at a fixed rate
The correct answer is To absorb liquidity at a fixed rate. The SDF allows banks to deposit surplus funds with RBI at a fixed rate, helping to absorb excess liquidity from the banking system. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Inter-bank Call Money Market is used by banks for short-term borrowing and lending. What is the typical maturity period for call money?
Correct Answer: A. 1 day
The correct answer is 1 day. Call money has a maturity of 1 day, making it the shortest-term borrowing instrument used by banks. It's crucial for managing daily liquidity needs. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.