Banking & Financial Awareness GK Questions with Answers – Page 11

The Reserve Bank of India has had its central office at Bombay, now Mumbai, since 1937, and it has stayed there ever since.

Section 10 of FEMA empowers the Reserve Bank to authorise any person to deal in foreign exchange or in foreign securities as an authorised dealer, money changer, offshore banking unit or in any other way, and to revoke that authorisation in the public interest or for breach of its conditions.

Under FEMA a contravention is adjudicated by an Adjudicating Authority, an appeal from that order goes to the Appellate Tribunal, and from the Tribunal an appeal lies to the High Court, but only on a question of law and within the period the Act allows.

A Foreign Currency Non-Resident Bank account is a term deposit held in a permitted foreign currency, so the depositor runs no exchange risk on the rupee, and both principal and interest are freely repatriable.

The committee chaired by S. S. Tarapore examined capital account convertibility for the Reserve Bank and set out the preconditions and a phased road map; the rupee remains fully convertible on the current account but only partly on the capital account.

Section 13 provides that a person contravening the Act is liable to a penalty of up to three times the sum involved where that sum is quantifiable, and up to two lakh rupees where it is not quantifiable, and a continuing contravention attracts a further five thousand rupees for every…

Section 6 governs capital account transactions, which are those that alter the assets or liabilities of a person outside India or in India, such as foreign direct investment, investment in overseas securities, borrowing abroad or buying immovable property abroad.

Under the Liberalised Remittance Scheme every resident individual, including a minor, may freely remit up to two lakh fifty thousand United States dollars in a financial year running from April to March, for any permitted current or capital account transaction or a combination of the two.

FEMA defines a person resident in India by a stay of more than one hundred and eighty-two days in the preceding financial year, with exceptions for a person who has gone abroad for employment, for business or for an uncertain period, and for a person who has come to India…

The Directorate of Enforcement, which works under the Department of Revenue in the Ministry of Finance, investigates contraventions of FEMA, conducts searches and places cases before the Adjudicating Authority.

FERA suited an economy short of foreign exchange: it presumed every transaction forbidden unless allowed, made a contravention a criminal offence punishable with imprisonment, and placed the burden of proof on the accused.

FEMA was passed as Act 42 of 1999 and received the assent of the President on 29 December 1999, but it was brought into force only on 1 June 2000, on which date the Foreign Exchange Regulation Act of 1973 stood repealed.

The Committee on Financial Inclusion chaired by C. Rangarajan submitted its report in 2008 and gave the definition of financial inclusion that policy documents still quote, as the process of ensuring access to financial services and timely and adequate credit to vulnerable groups at an affordable cost.

The PM Street Vendor's AtmaNirbhar Nidhi, launched on 1 June 2020 by the Ministry of Housing and Urban Affairs, is meant only for street vendors.

The Basic Savings Bank Deposit Account, introduced by the Reserve Bank in 2012 in place of the earlier no-frills account, carries no minimum balance requirement whatsoever, and that is its defining feature.

A Jan Dhan account carries an overdraft facility of up to ten thousand rupees, which lets the holder draw a small amount beyond the balance in the account and is in effect an unsecured consumption loan from the bank.

Stand Up India, launched on 5 April 2016, asks every bank branch to finance at least one Scheduled Caste or Scheduled Tribe borrower and at least one woman borrower with a loan between ten lakh rupees and one crore rupees for a greenfield enterprise, that is a first-time venture by…

MUDRA loans are classified purely by size, and Kishore is the middle rung meant for an enterprise that is already working and needs working capital or a modest expansion.

The Atal Pension Yojana is administered by the PFRDA through the architecture of the National Pension System, and it guarantees a monthly pension of one thousand to five thousand rupees from the age of sixty to subscribers who join between the ages of eighteen and forty.

PMSBY is a one-year renewable personal accident insurance scheme open to savings bank account holders aged eighteen to seventy who consent to the auto-debit of the twenty rupee annual premium.