BANKING AWARNESS FEBRUARY 2016

Site Administrator

Editorial Team

02 Oct, 2016

2096 Times Read.

Banking Awareness 2016,


RSS Feeds RSS Feed for this Article



MCQs-Banking-2016

TOP QUESTIONS FOR THE MONTH OF February 2016

Q) State Bank of India (SBI) on 1 February 2016 launched the ‘FlexiPay Home Loan’ scheme, which gives borrowers an option to pay only interest during a three-five year moratorium period. This product has been targeted towards which home loan segment? – Young working professionals

Explanation: Under the ‘FlexiPay Home Loan’ scheme, which has been launched primarily for young professionals, the borrowers can pay only interest during a three-five-year moratorium. Thereafter they will pay moderated equated monthly installments (EMIs)..


Q)Reserve Bank of India (RBI) Governor Raghuram G. Rajan presented the sixth bi-monthly monetary policy review on 2 February 2016. All the key rates were kept unchanged in the policy review which meant that the most important Repo Rate will remain unchanged at 6.75%. What the projected growth rate is for fiscal 2016-17 as stated in the review? – 6%

Explanation: Keeping the key rates unchanged, the RBI indicated that rates would continue to soften..


Q. The Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), which is the largest programme of its nature for providing employment in rural areas anywhere in the world, completed how many years on 2 February 2016? – 10 years

Explanation: MGNREGA, which was earlier known as NREGA, came into effect on 2 February 2006. It was implemented by the then United Progressive Alliance (UPA) government. Then it covered only the 200 poorest districts of the country and was expanded to cover all rural areas of the country from April 2008.


Q. Union Government is set to infuse how much more funds into the state-run banks in the current financial year 2015-16, as was announced by Financial Services Secretary Anjuly Chib Duggal on 3 February 2016? – Rs. 5,000 crore

Explanation: The Government is has earmarked fund worth Rs. 25,000 crore for 2015-16 primarily to strengthen PSU banks’ balance sheets. Of this about Rs 20,088 crore has already been pumped into 13 public sector banks.


Q. Which entity is partnering with the Department of Economic Affairs (Ministry of Finance) in organizing this summit? – SBI Caps

The 2-day ‘India Investment Summit’ was inaugurated by Union Finance Minister Arun Jaitley in New Delhi on 4 February 2016. This summit seeks to attract long term investors including Sovereign Wealth Funds and Pension Funds across the globe.

Explanation: The Summit is to showcase and discuss the huge long term infrastructure investment opportunities in India.


Q Which public-sector bank’s net profit plunged by over 90% during the third quarter (Q3) ended December 2015, as reported in the results on 9 February 2016? – Punjab National Bank (PNB)

Explanation: PNB’s net profit for the 3rd quarter (Sep-Dec 2015) was just Rs. 51 crore. It was way lower than the average Rs. 700 crore estimated by analysts.

……………………………………………………….

Q) On 8 February 2016, the Export-Import (EXIM) Bank of India announced plans to raise $300 million through ‘Panda Bonds’ to finance demand for credit. What are ‘Panda Bonds’? – Panda bonds are renminbi-denominated (Chinese currency) instruments from a non-Chinese issuer, sold in China

Explanation: EXIM Bank is seeking to raise Panda Bonds because the currency swap rates to raise money from the Chinese market are looking attractive at present. However, the timing for bond offering would depend on favourable swap rates.

 


 Q) The girl child welfare programme ‘Beti Bachao Beti Padhao’ was extended to how many new districts by the Union Govt. on 10 February 2016? – 61 districts

Explanation:  ‘Beti Bachao Beti Padhao’, which is the flagship programme of the Women and Child Development Ministry, was launched in additional 61 districts (covering 11 states) on 10 February 2016. The scheme was initially launched in 100 districts.

 


Q) Which public-sector bank on 12 February 2016 announced net loss of Rs. 3,342 crore for quarter ended December 2015, which is the largest quarterly loss by a bank in the history of Indian banking industry? – Bank of Baroda (BOB)

Explanation: Bank of Baroda (BOB) posted a quarterly net loss of Rs. 3,342 crore for the third quarter of 2015-16 (Sep-Dec), as compared to a profit of Rs. 333 crore in the same period of last year.

………………………………………….

 Q) The Urban Development Ministry on 15 February 2016 unveiled the list of India’s cleanest cities that were surveyed for sanitation and hygiene conditions as per ‘Swachh Survekshan-2016’. Which city topped this list? – Mysuru

Explanation: Mysuru in Karnataka remained the cleanest city in the country as disclosed in the list of 73 major cities surveyed for sanitation scenario last month. Results of ‘Swachh Survekshan-2016’ were released by the Minister of Urban Development M.Venkaiah Naidu on 15 February 2016.

…………………………………………………

 Q) In a bid to kick-start manufacturing in the electronics sector in the country, the Union Govt. on 15 February launched a Rs. 10,000 crore development fund specifically targeted at the semiconductor industry. What is the name of this fund? –Electronic Development Fund (EDF)

Explanation: The Electronic Development Fund (EDF) will provide risk capital to companies developing new technologies in electronics, nano-electronics and information technology. The fund will also be used to acquire foreign companies and technologies that are required for building hi-tech capabilities within India

…………………………………………………

Q)  SEBI Chairman UK Sinha’s tenure was extended by the Union Govt. for how much time as disclosed on 15 February 2016? – One year

Explanation: The government on 15 February 2016 extended U.K. Sinha’s tenure as the chairman of the Securities and Exchange Board of India (SEBI) for a year. With this, the govt. opted for continuity at a time of domestic and global market volatility.

…………………………………………………

Q) What is the interest rate on provident fund savings for 2015-16 as announced by the Employees’ Provident Fund Organization (EPFO) on 16 February 2016? – 8%

Explanation: The new rate is a marginal increase from the 8.75% interest rate paid in 2014-15. In fact, the 8.8% interest rate on EPF is the highest since 2010-11 when the EPF savings earned a 9.5% rate of return.

…………………………………………………..

Q) The Union Govt. came out with which major policy announcement regarding interest rates of all small saving schemes on 16 February 2016? – It announced recalibrating the interest rates of all small saving schemes on a quarterly basis from 1 April

Explanation: The Union Govt. decided to do away with the higher interest income earned through Kisan Vikas Patras (KVPs) and other small saving schemes below five years of maturity. With this move it expects to help bring down bank lending rates. However, it retained the interest rates of social security schemes for girls and senior citizens.

…………………………………………………..

Q) Boutros Boutros-Ghali – the former Secretary General of the United Nations (UN), who passed away on 16 February 2016, was a citizen of which country? –Egypt

Explanation: Boutros Boutros-Ghali was the 6thSecretary General of the United Nations and served this coveted post from 1 January 1992 to 31 December 1996.

…………………………………………………..

Q) Union Govt. unveiled the first-ever policy for the country’s capital goods sector on 15 February 2016. What are the three most important objectives of this policy?

Three primary objectives of the Capital Goods Policy:

 To create an ecosystem for a globally competitive capital goods sector to achieve total production in excess of Rs 7.5 lakh crore by 2025 from the current Rs 2.3 lakh crore

 Increase the share of capital goods in total manufacturing activity from 12% at present to 20% by 2025

 To create 21 million additional jobs by 2025

Explanation: The National Policy on Capital Goods is envisaged to unlock the potential of this promising sector and establish India as a global manufacturing powerhouse.

…………………………………………………..

Q) The Union Cabinet gave its approval to the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA) on 17 February 2016. TPA seeks to ease customs procedures to boost commerce. India has thus become …………country to approve TPA – 71st

Explanation: India on 17 February 2016 became the 71st country to give its approval to the World Trade Organization’s (WTO) Trade Facilitation Agreement (TFA). To implement this ambitious agreement, two-thirds of the total members, or 107 countries, have to approve it.

…………………………………………………….

Q) The Securities and Exchange Board of India (SEBI) on 17 February 2016 constituted a committee for disposing of the land purchased by PACL Ltd in order to refund people who have invested in the company’s various funds for purchase of land. Who was appointed the head of this committee? – Justice R.M. Lodha(Ex-Chief Justice of India)

Explanation: The committee was formed after the Supreme Court ordered SEBI to do so to carry out the refund process to PACL’s investors. While Justice R.M. Lodha is heading the committee, S. Raman, a whole-time member of SEBI, and Amit Pradhan, the chief general manager and regional director of SEBI’s North Regional Office, will be the two members working for the committee.

 

…………………………………………………….

Q) On 19 February 2016 who was appointed the Chairman of the Empowered Committee of state finance ministers that represents all states and will play a crucial role in implementing the goods and services tax (GST)? – Amit Mitra(West Bengal Finance Minister)

Explanation: The Union Govt. appointed West Bengal Finance Minister Amit Mitra as chairman of the Empowered Committee of state finance ministers. This was announced on 19 February 2016 by Minister of State for Finance Jayant Sinha.

…………………………………………………………..

Q)What is the name of the former RBI executive who was named as the chief executive officer (CEO) of Paytm’s payments bank on 19 February 2016? – Shinjini Kumar

Explanation: Shinjini Kumar, who is currently a director at research and consultancy firm PricewaterhouseCoopers (PwC), will join Alibaba-backed mobile wallet Paytm’s payments bank as chief executive officer (CEO).

 


Q) Who was re-appointed as IMF’s Managing Director for a second five-year term on 19 February 2016? – Christine Lagarde

Explanation: The Executive Board of the International Monetary Fund (IMF) on 19 February selected 60-year-old Christine Lagarde to serve as IMF Managing Director for a second five-year term starting on 5 July 2016.

 


Q) Prime Minister Narendra Modi on 21 February 2016 launched the ‘National Rurban Mission’, an ambitious scheme that seeks to transform rural areas to economically, socially and physically sustainable spaces. The mission was launched from which village of Chhattisgarh? – Kurubhat

Explanation: The ‘National Rurban Mission’ was launched by Prime Minister Narendra Modi at Kurubhat, a town in Rajnandgaon district of Chhattisgarh.

…………………………………………….

Q) The once-in-12-years Mahamaham festival, witnessed by over 12 lakh devotees, was held on 22 February 2016. This event, popularly known as the ‘Kumbh Mela of South India’ is held at which place? – Kumbakonam, Tamil Nadu

Explanation: Mahamaham is a Hindu festival celebrated every 12 years in the Mahamaham tank located in Kumbakonam, Tamil Nadu. Hindus consider taking a holy dip at the Mahamaham tank on the day of Mahamaham as sacred.

…………………………………………….

Q) Union Government started 5% disinvestment of its stake in which PSU entity on 23 February 2016? – NTPC

Explanation: 5% stake sale of Union Government in NTPC through the offer-for-sale (OFS) route was started from 23 February 2016. The sale is expected to garner Rs. 5,029 crore at a floor price of Rs.122 per share.

………………………………………………………

Q) According to recent media reports, World’s largest securities settlement system Belgium-based Euroclear has agreed to a model suggested by the Reserve Bank of India (RBI) to settle Indian government debt papers in overseas market. What will be the main benefit of employing this model of settling Indian debt overseas? – It will ensure that clearing of the debt happens in India using Indian brokers and custodians

Explanation: Finance minister Arun Jaitley in the Union Budget 2014-15 had proposed allowing international settlement of Indian debt securities. Euroclear is in final negotiations with the finance ministry and the RBI to make Indian government debt securities Euroclearable in 2016-17.

 


Q) Leading international bank Standard Chartered (Stan Chart) reported an annual loss in many years on 23 February 2016 as hefty restructuring costs and weak commodity prices took their toll on the bank. When was the last time Stan Chart reported an annual loss? – 1989

Explanation: Stan Chart, a bank now focusing on lending in the emerging markets, slumped to a headline pretax loss of $1.5 billion during 2015. This was the first-ever annual loss for the bank since 1989.

………………………………………………………

Top Questions – Rail Budget

……………………………………………………………..

 What is the name of the new series of non-reserved long-distance express trains that was announced in the Union Rail Budget 2016-17 on 25 February 2016? – Antodaya Express

……………………………………………………………..

 What is the name of the newly announced double decker AC trains with 40% more carrying capacity on busy routes? – UDAY Express

……………………………………………………………..

 What is the name of the new series of express trains running at speed of 130 kmph with world class services that was announced in the Rail Budget 2016? –Tejas Express

……………………………………………………………..

 What is the name of the new fully 3AC train announced in the Rail Budget 2016? – Humsafar

……………………………………………………………..

 Asha Circuit Trains, which were announced in the Rail Budget 2016, will cater to which specific segment? – Important Pilgrim centres in the country

……………………………………………………………..

 Which institution will be converted into Rail University as announced in the Rail Budget 2016? – National Academy of Railways (Vadodara)

……………………………………………………………..

 The Indian railways will soon inaugurate India’s first rail auto hub in which city as announced in Rail Budget 2016? – Chennai

……………………………………………………………..

 What will be the main objective of establishing the rail auto hub in Chennai? – To attract auto industry that is concentrated in and around Chennai

……………………………………………………………..

 The Rail Budget 2016 mentioned that soft-skills will be provided to ‘coolies’. Rail Minister gave which new title for ‘coolies’ as he felt this word is somewhat derogatory? – ‘Sahayaks’ (Assistants)

……………………………………………………………..

 E-Catering facility will be extended to how many railway stations during 2016-17 from the present 40, as announced in Rail Budget 2016? – 400

……………………………………………………………..

 The Rail Budget 2016 mentioned proposal to reorganize the Railway Board. This step will suitably empower which top-most rail official? – Chairman of Railway Board

……………………………………………………………..

 The Rail Minister announced that the Railway Ministry will expand the ‘Vikalp’ facility (that was started in October 2015) during 2016-17. ‘Vikalp’ is associated with – To provide choice of accommodation in specific trains to wait-listed passengers

……………………………………………………………..

 What is the name given to the ambitious mission to double speeds of freight trains as announced in the Rail Budget 2016? – ‘Mission Raftaar’

……………………………………………………………..

 The Rail Minister proposed adding how much length of electrified rail-tracks during 2016-17 as announced in the Rail Budget 2016? – 2000 km

……………………………………………………………..

 The facility to cancel the passenger-ticket through which helpline number was announced in the Rail Budget 2016? – 139

……………………………………………………………..

 Which are the prominent pilgrim stations that will be beautified by Rail Minister as announced in the Rail Budget 2016? – Ajmer, Amritsar, Gaya, Mathura, Nanded, Nashik, Puri, Deoband, Tirupati, Varanasi, Vellankanni and Nagapattinam

……………………………………………………………..

 What the total budget outlay for 2016-17 is as announced in the Rail Budget 2016? – Rs. 1.21 lakh crore

……………………………………………………………..

 What the proposed revenue income is for 2016-17 as announced in the Rail Budget 2016? – Rs. 184820 crore

……………………………………………………………..

 What will the operating Ratio be for Indian Railways during 2016-17 as announced in the Rail Budget? – 92%

……………………………………………………………..

 How many new dedicated freight corridors were announced in the Rail Budget 2016? – Three

……………………………………………………………..

 Which 3 new dedicated freight corridors were announced in the Rail Budget 2016? – a) North-South Freight Corridor b) East-West Freight Corridor c) East-Coast Freight Corridor

 


Q) Union Finance Minister Arun Jaitley tabled the Economic Survey for 2015-16 in the Parliament on 26 February 2016. The Survey primarily called for fiscal prudence and stable inflation, while acknowledging the risks to growth. Economic Survey, which is often known as the flagship document pertaining to the direction of country’s economy, is prepared by which official? – Chief Economic Adviser

Explanation: The Economic Survey for 2015-16, prepared by Chief Economic Adviser Arvind Subramanian termed India as a “haven of stability” and an “outpost of opportunity” amidst gloomy international economic landscape.

Main conclusions of Economic Survey 2015-16:

 The Survey expects India’s GDP to growth at 7-7.75% during 2016-17

 The Govt. is expected to achieve fiscal deficit target of 3.9% of GDP during 2015-16

 The Survey argued for adhering to 3.5% fiscal deficit target during 2016-17

 Consumer price or retail inflation is seen around 4.5 to 5% in 2016-17 as against 4.9% between April to January 2016

 India’s current account deficit is seen around 1-1.5% of GDP during 2016-17

 


Q) The SEBI on 25 February 2016 relaxed mutual fund norms to allow asset management companies (AMCs) to invest unclaimed redemption and dividend amounts in separate liquid and money market schemes. What was the pertaining norm till now? – It was allowed to be parked only in call money market or money market instruments

Explanation: At present, the money from unclaimed redemptions and dividends is allowed to be parked only in call money market or money market instruments. The Securities and Exchange Board of India (SEBI) on relaxed this rule and allowed the AMCs to invest unclaimed redemption and dividend amounts in separate liquid and money market schemes.

 For the same AMCs would have to start such schemes specifically for deploying amounts unclaimed by investors. AMCs will, however, not be permitted to charge any exit load in such MF plans that are specifically launched to allow deployment of unclaimed amounts.

 In order to ensure AMCs play a pro-active role in tracing owners of the unclaimed amounts, the fund managers will be required to provide on their AMC websites a list of names and addresses of investors in whose folios there are unclaimed amounts.

 


Q) The Union Cabinet on 24 February 2016 took which important decision pertaining to payments made through debit and credit cards, or over internet, for public services? – It decided to do away with levying surcharge on such payments

Explanation: The move to abolish surcharge on payments made through debit and credit cards, or over internet, for public services aims at reducing cash transactions. This will help in increasing cashless transactions for public services.

 Decision to promote debit/credit cards and digital payments will help check the menace of black money. Cashless transactions have been on the rise in India, but remain modest in comparison to cash payments.

 Levy of surcharges on card payments is seen as one important reason for slow growth for card payments.

 

Top Questions – Union Budget 2016-17

Union Finance Minister Arun Jaitley presented the Union Budget for 2016-17 on 29 February 2016. This was the third consecutive budget of the NDA government led by Prime Minister Narendra Modi. Following are the important questions coming out of the proposals coming out of this Budget.

…………………………………………………..

 What will be the new name for Department of Disinvestment as announced in the Union Budget for 2016-17? – Department of Investment and Public Asset Management

…………………………………………………..

 What is the name given to a new Cess of 0.5% imposed on all taxable services introduced in the Union Budget 2016-17 for helping country’s agriculture sector? – Krishi Kalyan Cess

…………………………………………………..

 How much fund for recapitalization of Public sector banks was announced in the Union Budget for 2016-17? – Rs. 25,000 crore

…………………………………………………..

 The Govt. has proposed to provide digital literacy for how many countrymen as announced in the Budget? – 6 crore

…………………………………………………..

 Union Finance Minister Arun Jaitley announced a unified market for agri produce in his Union Budget for 2016-17. Under it a pan-India e-Platform for agri products will be launched after states amend APMC Act. This platform has been proposed to be launched on which occasion? – Babasaheb Ambedkar’s birth anniversary

…………………………………………………..

 How much infrastructure cess (Infra Cess) on small cars was proposed in the Union Budget 2016-17? – 1%

…………………………………………………..

 The deduction limit under which section of the Income Tax Act was raised from Rs 2,000 to Rs 5,000 per annum in the Union Budget 2016-17? – Section 87A (Under Section 87A, taxpayers first reduce Rs 2,000 from their total tax payable. This section applies to those with total income of less than Rs 5 lakh)

…………………………………………………..

 How much tax relief was announced in the Union Budget 2016-17 for taxpayers who do not own a house and don’t get house rent allowance from employers? – From Rs. 24,000 to Rs. 60,000

…………………………………………………..

 What important announcement pertaining to Aadhaar was done in the Union Budget 2016-17? – Aadhaar will be given a statutory status (However, Aadhaar will not confer proof of domicile or citizenship)

…………………………………………………..

 What important announcement pertaining to PSU general insurance companies was announced in the Union Budget 2016-17– These companies will be listed now

…………………………………………………..

 Which important announcement pertaining to fertilizer subsidy was announced in the Union Budget 2016-17– A pilot Direct Benefit Transfer (DBT) scheme for fertilizer will be launched during 2016-17

…………………………………………………..

 What is the deadline for 100% village electrification as announced in the Union Budget 2016-17– 1 May 2018

…………………………………………………..

 What is level of fiscal deficit for 2016-17 as proposed in the budget? – 3.5% of GDP

…………………………………………………..

 What the proposed Current Account Deficit (CAD) is for 2016-17 as announced in the Union Budget for 2016-17? – 1.4% of GDP

…………………………………………………..

 How much fund was allocated for pulses production in the Union Budget 2016-17? – Rs. 500 crore

…………………………………………………..

 How much fund was allocated for the Accelerated Irrigation Benefits Programme (AIBP) in the Union Budget 2016-17? – Rs. 17,000 crore

…………………………………………………..

 How much fund was proposed for meeting initial cost of proving LPG connections for rural areas as announced in the Budget for 2016-17? – Rs. 2,000 crore (This scheme will continue for 5 years and will cover all BPL households)

…………………………………………………..

 How many airports of the country were declared in the unused and underused category for which Rs. 150 crore (each) will be provided as announced in the Budget for 2016-17? – 160

…………………………………………………..

 100% FDI in through Foreign Investment Promotion Board (FIPB) was announced in the Union Budget for 2016-17? – For marketing of food produce manufactured and processed in India

…………………………………………………..

 What was the total allocation for agriculture and farmer welfare in the Union Budget 2016-17? –Rs. 35,984 crore

…………………………………………………..

 What was the total allocation for MGNREGA in the Union Budget 2016-17? –Rs. 38,500 crore (This was the highest ever amount spend on MGNREGA in a year)

…………………………………………………..

 How much funds will be provided as aid to Gram Panchayats during 2016-17 as announced in the Union Budget 2016-17– 2.87 lakh crore

…………………………………………………..

 What is the total allocation on roads and highways for 2016-17 as announced in the Union Budget 2016-17– Rs. 97,000 crore

………………………………………………….

Q. Which state became the first non-Bharatiya Janata Party (BJP) state to sign agreement for the central government power reforms plan – Ujwal Discoms Assurance Yojana (UDAY)? – Uttar Pradesh

Explanation: Uttar Pradesh on 30 January 2016 became the first non-BJP ruled state to sign the MoU for Ujwal Discoms Assurance Yojana (UDAY). It became the fourth state (overall) to sign MoU after Rajasthan, Chhattisgarh and Jharkhand. The total states that have given in-principle approval of joining the UDAY reforms are now 15.

  • For the states that sign up for UDAY, one of the first steps is to take over 75% of discom debt as on 30 September 2015 over two years – 50% in 2015-16 and 25% in 2016-17.
  • UP, with its five distribution companies (discoms), has a total debt exposure of Rs 53,200 crore, outstanding as on November 2015, will now be restructured under UDAY.

 

The Swedish newspaper was recently asked it to delete the reference made by President Pranab Mukherjee to the Bofors scam in an interview to it, as a claim protested by the Indian Government on 27 May 2015. India has expressed disappointment over the disrespect shown to the President, the newspaper has defended its right to publish what was said during the interview.

Know, who is Vijay Kelkar and what is PPP !

Vijay Kelkar is a renowned economist and a former Finance Secretary. He was appointed head of newly constituted committee to give recommendations to recast the model of Public-Private-Partnership (PPP) model in India. India is one of the largest PPP market with over 900 projects. The Kelkar committee will review the PPP policy, suggest a better risk-sharing mechanism between private developers and the government after analysing such projects.

Know, who is Yaduveer Krishnadatta Chamaraja Wadiyar !

Yaduveer Krishnadatta Chamaraja Wadiyar was crowned as the new Maharaja of of Mysuru (Mysore) royal family. He is the 23-year old grandson of Princess Gayathri Devi, who was the eldest daughter of the last Maharaja of Mysore, Sri Jayachamarajendra Wadiyar. The coronation was held at Mysuru’s famous Amba Vilas Palace, which was decked up for the occasion.

Know about Sepp Blatter!

Swpp Blatter, was re-elected as FIFA president for a fifth term at the 65th Annual Congress of FIFA held at Zurich for four year term.

Prince Ali bin al-Hussein of Jordan stood against Blatter in this election. It is worth mentioning that FIFA is going through a major controversy regarding corruption in the organisation with two FIFA vice presidents and a recently elected FIFA executive committee member still in custody.

 


Responses on This Article

© Nirdeshak. All rights reserved.