NABARD GK Questions 2026

Inter-bank deposits are expressly excluded, because deposit insurance exists to protect ordinary depositors and not to insure banks against one another.

The whole of the deposit insurance premium is paid by the bank, and a bank is barred from passing the cost on, so the charge never appears in a depositor passbook.

The Corporation came into being on 15 July 1978, when the Deposit Insurance Corporation was merged with the Credit Guarantee Corporation of India Ltd, and the Deposit Insurance Act, 1961 was renamed the Deposit Insurance and Credit Guarantee Corporation Act, 1961.

Every depositor of an insured bank is covered up to five lakh rupees, and that figure takes in the principal and the accrued interest together.

The Deposit Insurance and Credit Guarantee Corporation is a wholly owned subsidiary of the Reserve Bank of India. It works under the Deposit Insurance and Credit Guarantee Corporation Act, 1961, has its head office in Mumbai, and is chaired by a Deputy Governor of the Reserve Bank.

The first accord was a simple framework that asked banks to hold capital equal to at least eight per cent of their risk weighted assets, with risk weights of zero, twenty, fifty and a hundred per cent assigned according to the creditworthiness of the borrower.

The Reserve Bank issued its framework for Domestic Systemically Important Banks in 2014 and has since placed these three in the list, on the view that their size, interconnectedness and complexity make their failure a danger to the whole system.

The Bank is located in Basel, Switzerland, was established in 1930 and is the oldest international financial institution in the world; it is often described as the bank for central banks because its members are central banks rather than private customers.

The Liquidity Coverage Ratio is a short term standard: a bank must hold enough high quality liquid assets, mainly cash, central bank reserves and sovereign securities, to survive the net cash outflows of a thirty day stress scenario, and the ratio must be at least a hundred per cent.

The buffer of two and a half per cent of risk weighted assets is meant to be built up in good years and drawn down in bad ones, so it must consist of the highest quality capital, that is common equity.

The crisis showed that banks had too little capital of genuinely loss absorbing quality and no cushion of liquid assets, so the Basel Committee issued Basel III in 2010 with stricter definitions of capital, the capital conservation and countercyclical buffers, a leverage ratio and the two liquidity standards.

Common Equity Tier one is the purest form of going concern capital, able to absorb losses while the bank continues to trade, and it is made up of paid up equity capital, share premium, statutory reserves and retained earnings.

The Reserve Bank has deliberately set the Indian minimum one percentage point above the Basel figure, so Indian banks must maintain a capital to risk weighted assets ratio of nine per cent, of which Common Equity Tier one must be at least five and a half per cent and total…

The third pillar works through disclosure: a bank must publish enough about its risk profile, capital and risk management for depositors, investors and rating agencies to judge it, so that the market itself exerts pressure for prudent behaviour.

It was set up in 1974 by the central bank governors of the Group of Ten countries and has its secretariat at the Bank for International Settlements in Basel, Switzerland.

The World Development Report is the Bank's annual study, each edition devoted to one theme of development such as jobs, water, migration or the use of data, and the Bank also publishes the Global Economic Prospects.

TRIPS is one of the agreements that came out of the Uruguay Round and is administered by the WTO; it lays down minimum standards for patents, copyright, trademarks and geographical indications, and it is enforceable through the WTO dispute settlement system, which is what makes it different from earlier treaties.

It is composed of the trade ministers of all member countries, meets at least once every two years and may take decisions on any matter covered by the WTO agreements; the first conference was held at Singapore in 1996 and the one at Doha in 2001 launched the Doha Development…

The Special Drawing Right, created by the IMF in 1969 as a supplementary reserve asset, takes its value from a basket of five currencies only: the US dollar, the euro, the Chinese renminbi, the Japanese yen and the pound sterling.

The correct answer is C, the IDA, the International Development Association, founded in 1960 to lend to the poorest countries on concessional terms, that is interest free credits and grants with long repayment periods, which is why it is called the soft loan window of the World Bank.