Banking & Financial Awareness GK Questions with Answers – Page 6

After the Gadgil Study Group recommended the area approach, the Reserve Bank appointed a Committee of Bankers under F. K. F. Nariman, which agreed with the area approach and added the mechanism that gave the scheme its name: each district should be allotted to one bank, which would act as…

The Study Group of the National Credit Council on the organisational framework for the implementation of social objectives, headed by Professor D. R. Gadgil, reported in 1969 that large parts of the country had no banking facility at all and recommended that credit be planned area by area, with a…

The Reserve Bank introduced the Lead Bank Scheme in December 1969, a few months after the nationalisation of fourteen major commercial banks in July of the same year, so the year is easy to anchor to the nationalisation year.

The Fugitive Economic Offenders Act of 2018 applies where a warrant of arrest has been issued for a scheduled offence involving a value of one hundred crore rupees or more and the person has left India to avoid prosecution, or refuses to return to face it.

The Financial Intelligence Unit India works under the Department of Revenue in the Ministry of Finance and reports to the Economic Intelligence Council, the apex body on economic offences, which is chaired by the Union Finance Minister.

The Financial Action Task Force was set up in 1989 at the summit of the Group of Seven industrial countries held in Paris, and its secretariat is housed at the headquarters of the Organisation for Economic Co-operation and Development in Paris.

Section 12 requires every reporting entity to maintain a record of all transactions of the prescribed nature and value for a period of five years from the date of the transaction between the client and the entity, and to maintain records of the identity of its clients for five years…

Section 5 allows the Director or an authorised officer, on reasons to be recorded in writing, to attach property believed to be the proceeds of crime provisionally for a period of one hundred and eighty days.

Section 4 provides that whoever commits the offence of money laundering shall be punishable with rigorous imprisonment for a term of not less than three years, which may extend to seven years, and with a fine.

The rules require a reporting entity to furnish a suspicious transaction report to the Financial Intelligence Unit not later than seven working days from the date on which it is satisfied that the transaction is suspicious.

Under the Prevention of Money-laundering Maintenance of Records Rules of 2005, a reporting entity must report all cash transactions of a value of more than ten lakh rupees, or their equivalent in foreign currency, and all series of integrally connected cash transactions that together exceed that amount within a month.

The Financial Intelligence Unit India was set up by the Government of India in November 2004 as the central national agency to receive, process, analyse and disseminate information about suspect financial transactions.

The Directorate, which works under the Department of Revenue in the Ministry of Finance and traces its origin to the Enforcement Unit set up on the first of May 1956, registers cases under the Act, attaches property provisionally, arrests, and files prosecution complaints in the Special Court.

The Prevention of Money Laundering Act was passed by Parliament in 2002 and is numbered as an Act of that year, but it was brought into force only on the first of July 2005, together with the Prevention of Money-laundering Maintenance of Records Rules of 2005, which set out the…

Placement comes first because the criminal must get cash into the financial system, which he does through small deposits, the purchase of bearer instruments or by mixing the cash with the takings of a shop or a petrol pump.

A peer-to-peer lending platform, which matches individual lenders with individual borrowers, must be registered as a Non-Banking Financial Company — Peer to Peer Lending Platform under master directions the Reserve Bank issued in 2017; it acts only as an intermediary and may not lend on its own book or give…

The Reserve Bank Innovation Hub was set up in 2020 at Bengaluru as a wholly owned subsidiary of the Reserve Bank to build products that deepen financial inclusion, and the Unified Lending Interface, a common platform through which lenders can draw authenticated data for credit appraisal, grew out of its…

RTGS, which settles large-value transactions one by one in real time, and NEFT, which settles in batches, are both owned and operated by the Reserve Bank, and both have been available round the clock on all days.

The guidelines issued in September 2022 require that all loan money move directly between the borrower’s bank account and the bank account of the regulated entity, that is the bank or non-banking finance company doing the lending, without any pool or pass-through account of a third party in between.

e-RUPI is a prepaid electronic voucher, delivered to the beneficiary as an SMS string or a QR code, which can be redeemed only by the named person and only for the named purpose, for example a vaccination or a diagnostic test.