Banking & Financial Awareness Previous Year Questions (PYQ) with Answers – Page 3

Section 7 of the Reserve Bank of India Act, 1934 lets the Central Government, after consulting the Governor, give the Reserve Bank such directions as it thinks necessary in the public interest, and it also allows the Governor and the Central Board to be superseded in that sense.

The slogan The Name you can Bank Upon belongs to Punjab National Bank. PNB was set up in 1894 at Lahore and was the first Indian bank started wholly with Indian capital, with Lala Lajpat Rai among those behind it; its head office is now in New Delhi.

ATM stands for Automated Teller Machine. A teller is the bank employee who takes and pays out cash at the counter, and the machine was built to do that same job without a person, which is how it got the name.

Policy rates are announced by the Reserve Bank, and since 2016 the decision is taken by its Monetary Policy Committee of six members under the chairmanship of the Governor.

The Reserve Bank of India began as a shareholders' bank and was taken into public ownership on 1 January 1949 under the Reserve Bank (Transfer to Public Ownership) Act, 1948.

The rupee was tied to the pound sterling from colonial times and stayed pegged to it after independence. In 1975 the link was cut and the rupee was tied instead to a basket of currencies of India's major trading partners, with the Reserve Bank fixing the daily rate.

Deposits are money the bank owes to its customers, so they sit on the liabilities side of its balance sheet.

The Service Area Approach, introduced by the RBI in 1989, worked within the framework of the Lead Bank Scheme to plan rural credit village by village.

A loan becomes a non-performing asset when interest or an instalment of principal stays overdue for more than 90 days.

The Consumer Protection Act, 1986 was the first comprehensive consumer law in India and created the three-tier machinery of district forums, state commissions and the National Consumer Disputes Redressal Commission.

Muhammad Yunus, an economist from Bangladesh, founded Grameen Bank. He grew it out of a lending experiment begun in the village of Jobra in 1976, and the bank was given formal status by law in 1983.

The Bharat Interface for Money application was released in December 2016 by the National Payments Corporation of India so that payments over the Unified Payments Interface, launched earlier that year, could be made from any smartphone with a bank account linked to it.

A debit card carries a 16-digit card number printed on its front, and this is the number a shop or a website reads to route the payment.

Prime Minister Narendra Modi launched the BHIM app on 30 December 2016, a few weeks after the note ban of November 2016, to push people towards digital payment.

An ATM set up, owned and operated by a non-bank company registered under the Companies Act is called a white label ATM, because it carries no bank's logo.

RTGS is the system in which a transfer instruction is settled singly and immediately, rather than being held and netted off with others.

IMPS is an interbank money transfer service run by the National Payments Corporation of India, launched in November 2010. Its great advantage is that it works round the clock, on holidays and at night, and the money reaches the beneficiary within seconds.

IPPB was incorporated as a public limited company, but its two pilot branches opened at Raipur and Ranchi, not at Hyderabad and Varanasi.

BHIM can send money to anyone who has a UPI-linked bank account, but a chip-and-PIN debit card does not use four factors of authentication.

CAR is the cushion of a bank's own capital against losses from loans that are not repaid, and its minimum is fixed by the regulator, not by each bank.