FINANCIAL AWARENESS - PAPER II

1. How much amount RBI allows in 'Tap and pay' transactions without PIN? 
1) Rs. 2000 2) Rs. 2500 3) Rs. 3000 4) Rs.4000 5) Rs.5000

2. Which telecom company has received payments bank licence from RBI ?
1) Airtel 2) Vodafone 3) Reliance Communications 4) Aircel 5) Telenor

3. What is the maximum amount for which case can be filed in a Lok adalat
1) Rs. 10 lak 2) Rs. 20 lak 3) Rs. 25 lak 4) Rs. 30 lak 5) No Limit

4. For improving the efficacy and efficiency of personnel employed and capacity
building in banks and non-banks, at various levels by banks and non-banking
financial companies, the RBI has released the Report of the Committee on Capacity
Building in banks and non-banks which was headed by ________ Director, Centre
for Advanced Financial Research and Learning (CAFRAL).
1) Urjit Patel 2) G. Gopalakrishna 3) M.V.Nair4) C. S. Murthy5) Dr. Nachiket Mor

5. Capital Gains Tax is not levied on income from shares sold after ...........of purchase
1) 3 Months 2) 6 Months 3) 9 Months 4) 12 Months 5) 18 Months

6. Having regard to the input credit linkages and ancillary affiliations, RBI on June 6,
2018 has decided to temporarily allow banks and NBFCs to classify their exposure,
as per the 180 days past due criterion, to all MSMEs, including those not registered
under GST, as a ‘standard’ asset, subject to the stipulated conditions. Which of the
following is the correct stipulated condition:

1) The aggregate exposure, including non-fund based facilities, of banks and NBFCs
to the borrower does not exceed Rs. 250 million as on May 31, 2018.

2) The borrower’s account was standard as on August 31, 2017.

3) The payments due from the borrower as on September 1, 2017 and falling due
thereafter up to December 31, 2018 were/are paid not later than 180 days from their
original due date.
4) In respect of dues payable by GST-registered MSMEs from January 1, 2019
onwards, the 180 days past due criterion shall be aligned to the extant IRAC norms
in a phased manner, as given in the table below. However, for MSMEs that are not
registered under GST as on December 31, 2018, the asset classification in respect of
dues payable from January 1, 2019 onwards shall immediately revert to the extant
IRAC norms.

5) All of the above

7. External Commercial Borrowings to start-ups permitted upto............per financial year

1) 2 Million $ 2) 3 Million $ 3) 4 Million $ 4) 5 Million $ 5) 10 Million $

8. India ranks -----------------in the world in terms of Financially Excluded Households

1) First 2) Second 3) Third 4) Fourth 5) Fifth

9. "Basel Committee on Banking Supervision" is also known as_______.

1) Bank for International Settlements Committee

2) Banking Regulation Committee
 3) Financial Stability Board
4) Global Financial System
5) BBB

10. Which one of the following organisations has been set up to facilitate connectivity
between the Bank's switches and their ATMs, and inter bank payment gateway for
authentication and routing the payment details of various e-commerce transactions?

1) IBA 2) IDRBT 3) IRDA 4) SIDBI 5) SIDBI

11. Which among the following made the initial contribution for setting up Financial
Inclusion Fund and Financial Inclusion Technology Fund?

1) Government of India, NABARD and RBI

2) NABARD, UTI and RBI
3) SIDBI, Government of India and IDBI Bank
4) SIDBI, NABARD and UTI
5) IDRBT,SIDBI,RBI

12. Which one of the following is called the frequent changes made by Banks in their
Product profile?

1) Product Control
2) Product Enhancement
3) Product Enrichment
4) Product Marketing
5) Product pricing

13. Which of the following organizations/ agencies has sought an emergency fund of
Rs.1000 crore from banks to tackle acute liquidity crisis, which is coming in the way
to give loans to micro borrowers?
1) Regional Rural & Co Operative Banks
2) RBI
3) Microfinance Institutions
4) NABARD
5) IDRBT

14.Ashok Kumar Mathur is associated with which of the following

institutions/commissions?
1) GST 2) 7 th Pay commission 3) Draft Committee on CSR
4) Tax Administration Reform Commission
5) BBB
15. According to the new Company Act, 2013 companies earning profits have compulsorily
to invest ……..per cent of their profit on Corporate Social Responsibility (CSR)

1) 1 2) 2 3) 3 4) 4 5) 5

16. Who headed the RBI-constituted committee to examine the recommendations of

Financial Sector Legislative Reforms Commission (FSLRC)

1) G GopalaKrishna 2) Nachiket Mor 3) Parthasarathy Shome

4) K C Chakravarthy 5) Raghuram Rajan

17. By 31 March 2019, the Basel capital + counter cyclical buffer will stand at _________:
 1) 9.0 2) 11.5% 3) 10.05 4) 8.50 5) 9.50

18.  The Reserve Bank on May 1, 2018 had stipulated that investments by an Foreign
Portfolio Investor (FPI) in corporate bonds with residual maturity below one year shall
not exceed, at any point in time, ______ per cent of the total investment of that FPI in
corporate bonds. The purpose is to bring consistency across debt categories.
1) 10 2) 20 3) 30 4) 35 5)40

19. What was the fund allocated towards recapitalization of Banks in Union Budget
1) 20000 cr 2) 25000 Cr 3) 30000 Cr 4) 35000 Cr 5) 500000 Cr

20. What is the targeted Sanction Amount under Pradhan Mantri Mudra Yojana
1) 1,80,000 Cr 2) 2,00,000 Cr 3) 2,20,000 Cr 4) 2,40,000 Cr 5) 2,50,000 Cr

21. What is the maximum amount of loan which can be given under Startup India
Scheme
1) 10 Lac 2) 1 Crore 3) 2 Crore 4) 5 Crore 5) 10 Crores

22. What is the maximum age upto which loans under PMEGP can be given
1) 40 years 2) 45 Years 3) 50 years 4) 55 years 5) 60 years

23. What is the maximum monthly pension for the subscribers under Atal Pension
Yojana?
1) Rs 2000 2) Rs 3000 3) Rs 4000  4) Rs 5000 5) Rs 10000

24. Largest shareholder (in percentage shareholding) of a Nationalized bank is ?

1) RBI     2) NABARD    3) LIC     4) Govt. of India       5) IBA

25. The CGTMSE guarantee cover is___% of the sanctioned

amount for MSE retail trading activity:
1) 0 2) 75 3) 50 4) 85 5) 100

26. The Reserve Bank has decided that the rate of interest payable by banks to the
depositors / claimants on the unclaimed interest bearing deposit amount transferred
to the Depositor Education and Awareness Fund shall be _____ per cent simple
interest per annum with effect from July 1, 2018. The settlement of all claims
received by the banks on or after July 1, 2018 will be at this rate, until
further notice.
1) 4 2) 3.75 3) 4.5 4) 3.0 5) 3.5

27. In the Banking terminology, Green PIN means _

1) the bank ask the customer to open the account in online only, and no printed
application will be given
2) The ATM withdrawal receipt given in the Green color to recognize easily
3) The display in ATM appear in Green Color when it asking the customer to type
PIN number
4) Card-users were given the PIN numbers electronically rather than in a printed kit
5) Issuing Rupay cards in lieu of old cards

28. The RBI has come out with a new concept of bank licensing termed as ‘Differentiated
Bank Licence’, A differentiated bank licence will allow a bank to _
1) open branches in only identified geographical areas.
2) deal branches in only identified class of customers.
 3) offer products only in select verticals
4) offer services to specified institutions / customers
5) operate on principles of uni1 banking

29. Which of the following statements is incorrect in respect of banking sector, as per the
decision taken in Parliament recently?
1) The RBI will create framework for licenses of small banks
2) Every’ Panchayat to have at least one small bank by 2019
3) Banks to be permitted to raise term funds to lend to infrastructure with minimum
regulations
4) Public sector banks need 40 lac enquiries to conform to Basel- III norms by 2018
5) Banks capital to be raised through retail sale of shares while government to
continue to majority in PSU banks

30. The Phase II of PMJDY (15th August, 2015 to 14th August, 2018) covers .......
1) Providing micro-insurance.
2) Unorganised sector Pension schemes like Swavalambana through the Business
Correspondents.
3) All basic savings accounts opened will be shifted to PMJDY accounts.
4) Facility to buy immovable property through PMJDY accounts.
5) 1 & 2 only

31. ELSS means

1) Entry Load Shares Scheme
2) Entry Load Starting Shares
3) Equity Linked Savings Scheme
4) Equity Linked Shares Sold
5) Employee Level Salary Scheme

32. What is the term for a bank without any branch network that offers its services
remotely?
1) Virtual Bank
2) Direct Bank
3) Lending Institution
4) Indirect Bank
5) Online Bank

33. The proposed Micro Units Development Refinance Agency (MUDRA) Bank first set up as a
subsidiary of the _
1) NABARD
2) SBI
3)EXIM Bank
4) SIDBI
5) IDBI

34. Objective to skill 1 crore youth in the next 3 years under the ………….
1) Startup, Standup
2) PM Kaushal Vikas Yojna
3) PM Rozgaar Bhatta Yojna
4) Deen Dayal Upadhyaay Grameen Kaushalaya Yojna
5) PMJDY

35. Technological Advancement in the recent times has given a new dimension to banks,
mainly to which one of the following aspects?
1) New Age Financial Derivatives
 2) Service Delivery Mechanism
3) Any Banking
4) Any type Banking
5) Multilevel Marketing
36. ” In relation to banking, what do understand by “”Ever-Greening of Account””?”
1) Full repayment of a loan ac before maturity Pre-payment
2) Full repayment of a loan ac exactly at maturity
3) Fresh Loan sanctioned during the tenure of account for enhancement
limits
4) Adjusting the NPA/Sticky ac with fresh sanction of loans
5) Loans provided for new project new customers

37. What is offshore banking?

1) It is a bank located in the sea
2) It is a bank located in SEZ
3) It is a bank located in a neighboring country
4) It is a bank located outside the country of residence of the depositor
5) Basically dealing in foreign exchange

38. Maximum compensation an Ombudsman is empowered to award in respect of

deficiency in service of the Credit Card operations is __
1) 50000
2) Rs. 1 lakh
3) 25000
4) Rs. 10 lakh
5) Rs. 5 lakh

39. Which of the following committees has recommended Universal Electronic Bank
Account (UCBA) for every resident to be made available at the time of issuing the
Aadhar Number?
1) Nachiket Mor Committee
2) Shyamala Gopinath Committee
3) Urjit Patel Committee
4) C Rangarajan Committee
5) Dipak Mohanthi Committee

40. The Depositor Education and A war Fund (DEAF) has been set up with _
1) Public Sector Banks
2) State Bank of India
3) Reserve Bank of India
4) Indian Banks Association
5) Government of India

41. As per Basel III, banks would be required to maintain Capital Adequacy Ratio of –
including Capital conservation (CCB)?
1) 11.5
2) 10.5
3) 9.5
4) 8.5
5) 12.5

42. The network for common data communication for banks and FIs launched by RBI
1) BANKNET
2) INFINET
 3) SWIFT
4) INTERNET
5) EXTRANET

43. Which of the following became the first public sector company to raise funds with the
launch of its ‘Green Masala Bond’ on the London Stock Exchange(LSE) ?
1) BHEL
2) ONGC
3) SAIL
4) NTPC
5) GAIL

44. An online finance facilitation portal for Micro, Small and Medium enterprises was
launched by the government in Aug 16. MSMEs can now apply for loans from banks
on which of the following portals ?
1) IFCI (Industrial Finance Corporation of India)
2) IDFC (Infrastructure Development Finance Company)
3) IDBI ( Industrial Development Bank of India)
4) NSIC (National Small Industries Corporation)
5) SIDBI (Small Industries Development Bank of India)

45. In order to address the concerns arising out of the anonymity provided by payments
through Demand Drafts and the possible misuse for money laundering, the RBI has
decided that the name of the purchaser be incorporated on the face of the demand
draft, pay order, banker’s cheque,etc., by the issuing bank. These instructions shall
take effect for such instruments issued on or after ___________:
1) January 1, 2018
2) September 1, 2018.
3) October 1, 2018
4) October 15, 2018
5) September 15, 2018.

46. A scheme has been launched by the MSME Ministry to assess creditworthiness and
capabilities of industries in the sector. What is it called?
1. Performance and Credit Rating Scheme
2. Zero Defect Zero Effect Certification
3. Performance and Economy Rating Scheme
4. Performance linked collection Scheme
5. No Such Scheme

47.  RBI will purchase back indexed bonds maturing in which year?
1)  2022 2)  2023 3)  2024 4) 2025 5) 2026

48.  The Reserve Bank has decided that with effect from August 20, 2018, LAF will also
be extended to Scheduled State co-operative banks (StCBs) which are core banking
solution (CBS) enabled and have the capital to risk (weighted) assets ratio (CRAR) of
at least 9 per cent.

1)  8  2)  9  3) 10  4) 11 5) 12

49. For improving monitoring and ensuring compliance with the LRS limits, a system for
daily reporting of individual transactions under the LRS by ADs banks has been put
in place. Since the said reporting system uses the Permanent Account Number
(PAN) of the remitter as a Unique Identifier to aggregate the remitter-wise data, RBI
has decided that furnishing of PAN, which earlier was not to be insisted upon
 while putting through permissible current account transactions of upto USD ______,
shall now be mandatory for making all remittances under LRS.

1) 25000 2) 50000 3) 75000 4) 100000 5) 200000

50. Government incorporated provision of penalties for States & Insurance Companies
for the delay in settlement of insurance claims under the PMFBY. As per the new
guidelines, the farmers will be paid ............% interest by insurance companies for the
delay in settlement claims beyond two months of prescribed cut-off date.
.
1) 2.5% 2) 12% 3) 1.2% 4) 5% 5) 9%

FINANCIAL AWARENESS- PAPER II

KEY

Q A Q A Q A Q A Q A
1 1 11 1 21 2 31 3 41 1
2 1 12 4 22 2 32 2 42 1
3 2 13 4 23 4 33 4 43 4

4 2 14 2 24 4 34 2 44 4
5 5 15 2 25 3 35 2 45 5
6 5 16 1 26 5 36 4 46 1
7 3 17 2 27 4 37 5 47 2
8 2 18 2 28 3 38 2 48 2
9 1 19 2 29 2 39 1 49 1
10 2 20 1 30 5 40 3 50 2