Banking Awareness January Set 2 by Dr.

Gaurav Garg

Q) RBI has recently proposed a ______tier structure for tighter regulatory framework of the Non-Banking
Financial Companies (NBFCs)?
A.Three B.Five
C.Two D.Four

Regulatory and supervisory framework of NBFCs

● RBI has said the regulatory and supervisory framework of NBFCs should be based on a four-layered structure: Base
Layer, Middle Layer, Upper Layer and a possible Top Layer.
● It has also proposed classification of non-performing assets (NPAs) of base layer NBFCs from 180 days to 90 days
overdue.
● NBFCs in the lower layer will be known as NBFC-Base Layer (NBFC-BL).
● NBFCs in the middle layer will be known as NBFC-Middle Layer (NBFC-ML).
● An NBFC in the Upper Layer will be known as NBFC-Upper Layer (NBFC-UL) and will invite a new regulatory
superstructure. There is also a Top Layer, ideally supposed to be empty.
● Once an NBFC is identified as NBFC-UL, it will be subject to enhanced regulatory requirement at least for four
years from its last appearance in the category, even where it does not meet the parametric criteria in the subsequent
year.
● Hence, if an identified NBFC-UL does not meet the criteria for classification for four consecutive years, it will move
out of the enhanced regulatory framework.

Q) Which bank has been kept in the list of domestic systemically important banks (D-SIBs) by the Reserve Bank of India
A.State Bank of India B.ICICI Bank
C.HDFC Bank D.All of the above

Q) The Reserve Bank of India (RBI) has imposed a penalty of Rs 2 crore on Standard Chartered Bank. Where is HQs of
Bank located?
A.London B.New York
C.Geneva D.Berlin

Q) Which state has decided to rename Ayushman Bharat Health Insurance Scheme as Ayushman Bharat Mahatma Gandhi
Health Insurance Scheme?
A.Chhattisgarh B.Maharashtra
C.Rajasthan D.West Bengal

Q) Airtel Payments Bank has introduced which feature to protect customers from online frauds?
A.Airtel Secure Pay B.Airetel Digital Pay
C.Airtel Smart Pay D.Airtel Safe Pay

Q) Which bank has introduced the Aura credit card with health and wellness benefits?
A.Yes Bank B.HDFC Bank
C.Axis Bank D.ICICI Bank

Q) Who has been appointed as the Managing Director of Life Insurance Corporation (LIC)?
A.Siddhartha Mohanty B.Abhinav Saxena
C.Siddharth Patel D.Shekhar Sharma

Q) Which Bank has launched a new mobile application ‘InstaFX’?

A.Axis Bank B.Yes Bank
C.HDFC Bank D.ICICI Bank

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Q) Vishwavir Ahuja has been appointed as the Managing Director (MD) and Chief Executive Officer (CEO) of which bank?
A.Yes Bank B.Axis Bank
C.RBL Bank D.HDFC Bank

Q) Tech giant Google has removed hundreds of personal loan apps of which country from its play store?
A.China B.India
C.Australia D.New Zealand

Q) Which Bank has announced its partnership with Aditya Birla Wellness Private Limited to launch Wellness Credit Cards?
A.Axis Bank B.HDFC Bank
C.Yes Bank D.ICICI Bank

Q) Which Payments Bank has partnered with Financial Software and Systems (FSS) to
promote financial inclusion among underserved and unbanked segments?
A.Airtel Payments Bank B.India Post
Payments Bank
C.Fino Payments Bank D.Jio Payments Bank

Q) According to RBI’s Financial Stability Report (FSR), the gross non-performing

assets (GNPAs) of banks may rise sharply to what percent by September 2021?
A.11.6% B.14.5%
C.10.9% D.13.5 %

Bharti AXA General Insurance launches 'Krishi Sakha' App for farmers

● Bharti AXA General Insurance has launched its new app ‘Krishi Sakha’ to cater to the specific needs of the farmer
in the country and guide them in adopting best farming practices and enhancing productivity.
● Bharti AXA ‘Krishi Sakha’ aims at helping Indian farmers make informed decisions through customized
information related to their farming requirements.

Q) Rin Samadhan Yojna is a scheme of which Bank?

A.Punjab National Bank B.Bank of Baroda
C.State Bank of India D.Canara Bank

Farmers in Maharashtra benefiting from ‘Rin Samadhan Yojna’

● State Bank of India has provided a major relief to farmers under its loan settlement schemes. Many farmers in
Maharashtra are benefiting from this Rin Samadhan Yojna.
● Under the Rin Samadhan Yojna, if the farmer who has borrowed loan, pays 20 per cent of the principal amount
of the total dues, pending since two years, then the entire loan will be waived.
● At the same time, new agricultural loans are also being given to these farmers. This is providing a great relief to
the farmers.

Q) Which Bank has tied up with a fintech company Niyo to issue prepaid cards to workers of Micro, Small & Medium
Enterprises (MSMEs)?
A.Axis Bank B.HDFC Bank
C.ICICI Bank D.Yes Bank

ICICI Bank ties up with Niyo to issue prepaid cards to MSMEs

● ICICI Bank and fintech company Niyo have announced a tie-up to issue prepaid cards to workers of Micro, Small
& Medium Enterprises (MSMEs).

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 ● MSMEs will now be able to get ‘ICICI Bank Niyo Bharat Payroll Card’ powered by Visa, for their blue-collar
workers, who are mostly under-banked.
● With this, MSMEs can upload the salaries of their workers on the card, which the workers can then utilise as per
their need in a seamless manner.
● The ‘ICICI Bank Niyo Bharat Payroll Card’ allows an individual to receive funds upto Rs 1 lakh into the card
account. It offers convenience and safety of digital banking to the blue-collar workforce, while providing salary
disbursement solutions to the employers.

Q) Indian Government has signed an agreement worth USD 500 million with which bank for the implementation of the
STARS project in six states?
A.Asian Development Bank B.New Development Bank
C. European Central Bank D. World Bank

India, World Bank sign 500 million dollar Programme to improve quality of school education in India

● The Government of India and the World Bank signed a 500-million US dollar Strengthening Teaching-Learning
and Results for States Programme (STARS) to improve the quality and governance of school education in six
Indian states.
● These include Himachal Pradesh, Kerala, Madhya Pradesh, Maharashtra, Odisha, and Rajasthan.
● Some 250 million students (between the age of six and 17) in 1.5 million schools and over 10 million teachers will
benefit from the programme.
● The STARS programme builds on the long partnership between India and the World Bank (since 1994), for
strengthening public school education and to support the country’s goal of providing Education for All.
● Prior to STARS, the Bank had provided a total assistance of more than three billion US dollars towards this goal.

Q) Off-budget borrowings, seen in recently, are the loans that are _________?
A.Taken by Centre Directly B.Not Taken by the Centre directly
C.Taken by Foreign Banks D.Taken by NBFCs

Why govt borrows off-budget, and how

● One of the most sought after details in any Union Budget is the level of fiscal deficit. It is essentially the gap
between what the central government spends and what it earns. In other words, it is the level of borrowings by the
Union government.
● One of the ways to do this is by resorting to “off-budget borrowings”. Such borrowings are a way for the Centre to
finance its expenditures while keeping the debt off the books — so that it is not counted in the calculation of fiscal
deficit.

What are off-budget borrowings?

● Off-budget borrowings are loans that are taken not by the Centre directly, but by another public institution
which borrows on the directions of the central government. Such borrowings are used to fulfil the government’s
expenditure needs.
● But since the liability of the loan is not formally on the Centre, the loan is not included in the national fiscal
deficit. This helps keep the country’s fiscal deficit within acceptable limits.
● As a result, as a Comptroller and Auditor General report of 2019 points out, this route of financing puts major
sources of funds outside the control of Parliament.
● “Such off-budget financing is not part of the calculation of the fiscal indicators despite fiscal implications.

How are off-budget borrowings raised?

● The government can ask an implementing agency to raise the required funds from the market through loans or by
issuing bonds.

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 ● For example, food subsidy is one of the major expenditures of the Centre. In the Budget presentation for
2020-21, the government paid only half the amount budgeted for the food subsidy bill to the Food Corporation of
India.
● The shortfall was met through a loan from the National Small Savings Fund. This allowed the Centre to halve its
food subsidy bill from Rs 1,51,000 crore to Rs 77,892 crore in 2020-21.

Q) What is the CBDC which the Reserve Bank of India (RBI) is examining to see if it has a future in India?
A.Credit Bank Digital Currency B.Central Bank Digital Currency
C.Centrally Banked Digit Cash D.Cash Back In Digital Currency

India May Have a New Central Bank Digital Currency, RBI Explores Possibility

● Reserve Bank of India (RBI) said it is examining if there is a need to introduce Central Bank Digital Currency
(CBDC) in the country and is exploring ways to operationalise it, if necessary.
● The RBI's statement comes against the backdrop of private digital currencies, virtual currencies and cryptocurrencies
gaining popularity in recent years.
● In India, the regulators and governments have been sceptical about these currencies and are apprehensive about the
associated risks.

WHAT IS CENTRAL BANK DIGITAL CURRENCY?

● CBDC is a legal tender and a central bank liability in digital form denominated in a sovereign currency and
appearing on the central bank's balance sheet. It is in the form of electronic currency which can be converted or
exchanged at par with similarly denominated cash and traditional central bank deposits.

Q) Who has been appointed as the New Managing Director of State Bank of India (SBI)?
A.Swaminathan Janakiraman B.Anand Krishnan
C.Rahul Tiwari D.Rudraksh Singh

Swaminathan Janakiraman & Aswini Kumar Tewari appointed SBI MDs

● The appointments committee (ACC) of the Cabinet has cleared the names of two officials—Swaminathan
Janakiraman and Ashwini Kumar Tewari as new managing directors of State Bank of India (SBI).
● The appointments are for a period of three years.
● SBI is headed by a Chairman and four managing directors.
● Dinesh Kumar Khara is the current Chairman of the bank. The other two MDs of the bank are C.S. Setty and
Ashwani Bhatia.

Q) Who has been appointed as the managing director and CEO of the Dhanlaxmi Bank?
A.J K Shivan B.Niranjan Jha
C.Keshav Bhatnagar D.Narinder Singh

Dhanlaxmi Bank Board approves appointment of Shivan as MD and CEO

● Board of Directors of Kerala-based Dhanlaxmi Bank have given approval to appoint J K Shivan as managing
director and CEO of the Bank.

Q) Which bank has inaugurated its International Banking Unit (IBU) branch at GIFT City near Gandhinagar city in Gujarat?
A.Citibank B.HSBC
C.Deutsche Bank D.Barclays Bank

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HSBC inaugurates international banking unit at GIFT City in Gujarat

● Global financial services major HSBC has inaugurated its International Banking Unit (IBU) branch at GIFT City
near Gandhinagar city in Gujarat.
● HSBC is one of the earliest global financial institutions setting up a branch at India's GIFT City and was the first
bank to get a licence from the newly set up International Financial Services Centres Authority (IFSCA).
● HSBC's IBU branch at Gujarat International Finance Tec City (GIFT City) will be operational for customer
transactions with effect from January 27.

StashFin Partners with SBM Bank India to Launch Contactless Prepaid Cards

● Singapore-based neobanking startup StashFin and SBM Bank India have announced the launch of their co-branded
contactless prepaid cards.
● Designed through collaboration, these prepaid cards will boost access to credit for underbanked consumers
● With this launch, the innovation and technology-led business partnership is set to bridge the growing credit gap in
India.
● The Visa powered card comes with a contactless EMV chip, offering the cardholders 24x7 access to funds. With its
enhanced safety and security features, the prepaid card acts like a personal overdraft facility, allowing the customer
to take loans up to Rs 5 lakh.
● This card can be used for free ATM cash withdrawals and online/offline payments at all merchant platforms and
PoS terminals across India

HDFC Bank, CSC partner to launch EMI collection service for business correspondents

● HDFC Bank has joined hands with CSC e-Governance Services India Ltd to provide EMI Collection Services for
CSC-HDFC Bank’s Business Correspondents across the country.
● CSC e-Governance Services India Ltd is a Special Purpose Vehicle (CSC SPV) under the Ministry of Electronics
& IT (MeitY).
● The bank's new initiative is aimed at making payments convenient for customers, who can now visit their nearest
CSC, to deposit overdues.
● With the launch of the EMI Collection facility through CSC, customers need not visit bank branches and can
instead deposit the EMI through CSC, thus saving time.
● The CSC-HDFC Bank Correspondent or Village Level Entrepreneur (VLE) will match the loan account with
the customers’ registered phone number to cross check the amount payable on the system.
● The VLE will then provide a receipt for the amount collected and deposit the amount in the prescribed form to bank.

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