Banking System, NPA & IBC — Set 9
Economy Advanced · बैंकिंग प्रणाली, NPA और IBC · Questions 81–90 of 160
The Book Entry System allows trading without physical certificates. When was the Book Entry System fully implemented in India?
Correct Answer: B. 1997
The correct answer is 1997. The Book Entry System was fully implemented in India in 1997, making securities trading more efficient and secure through electronic records. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Central Bank of India (CBI) manages government accounts and forex reserves. How many subsidiaries does CBI operate?
Correct Answer: B. 5
The correct answer is 5. CBI operates multiple subsidiaries providing various services. However, CBI's primary role is as an agent bank for the Government of India. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Recapitalization of banks ensures they maintain adequate capital levels. How much did RBI recapitalize PSBs in 2019-20?
Correct Answer: C. Rs. 15000 crore
The correct answer is Rs. 15000 crore. The government recapitalized PSBs with Rs. 15,000 crore in 2019-20 to strengthen their capital adequacy ratios and support lending growth. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Asset Reconstruction Companies (ARCs) buy stressed assets from banks. How many ARCs are currently operating in India?
Correct Answer: C. 15
The correct answer is 15. Approximately 15 ARCs operate in India, helping banks manage non-performing assets and improving asset quality through structured debt recovery. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Non-Performing Assets (NPAs) significantly impact bank profitability. What percentage of NPA is considered 'Stressed Assets' including restructured loans?
Correct Answer: C. 30%
The correct answer is 30%. When NPAs and restructured loans together exceed 30%, they are classified as stressed assets, indicating severe banking sector stress. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Prompt Corrective Action (PCA) framework allows RBI to take corrective measures on weak banks. What is the key trigger for PCA?
Correct Answer: B. Capital Adequacy Ratio falling below threshold
The correct answer is Capital Adequacy Ratio falling below threshold. PCA is triggered when Capital Adequacy Ratio falls below regulatory limits, indicating the bank needs strengthening through RBI's supervisory interventions. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Cross-Border Payments through SWIFT facilitate international transfers. How many countries are part of the SWIFT network?
Correct Answer: D. 250
The correct answer is 250. SWIFT connects over 250 countries through its network of financial institutions. It is the backbone of international payment systems and financial messaging. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Reserve Bank's Regulation System includes periodic Stress Testing of banks. What is the purpose of stress testing?
Correct Answer: B. Assessing resilience to adverse scenarios
The correct answer is Assessing resilience to adverse scenarios. Stress testing assesses banks' ability to absorb losses in adverse economic scenarios. It helps identify vulnerabilities and ensure financial stability. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Foreign Remittances are an important source of external financing for India. Which country sends the maximum remittances to India?
Correct Answer: A. USA
The correct answer is USA. The USA sends the largest amount of remittances to India, followed by UAE. Indian diaspora in USA significantly contributes to India's forex inflows. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.
The Capital Controls regulate the movement of money across borders. Which organizations manage capital controls in India?
Correct Answer: B. RBI and Ministry of Finance
The correct answer is RBI and Ministry of Finance. RBI and the Ministry of Finance jointly manage India's capital controls. They balance financial liberalization with macroeconomic stability. This topic is frequently tested in competitive examinations such as RRB NTPC, SSC, and UPSC.