Banking & Financial Awareness Mixed Quiz: Set 35

Ways and Means Advances are short-term loans from the RBI, and the scheme began in 1997. Governments often spend before their receipts arrive.

SWIFT is headquartered at La Hulpe, in the outskirts of Brussels, and it is therefore incorporated under Belgian law and supervised by a committee of central banks with the National Bank of Belgium as the lead overseer.

NPCI runs the National Financial Switch (NFS), the network that connects the ATMs of banks across India. The National Financial Switch lets a customer of one bank withdraw cash or check a balance at another bank's ATM.

The applicant is the importer or buyer, who approaches its own bank, asks it to issue a credit in favour of the overseas seller, agrees the terms and documents that will be required, and pays the issuing commission.

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.

The revised framework applies to all scheduled commercial banks but expressly leaves out three categories: small finance banks, payments banks and regional rural banks.

The linkage joined India's Unified Payments Interface with Singapore's PayNow, so that users of either system could send money across the border using a mobile number or a virtual payment address rather than full bank details.

The circular places the burden of proof squarely on the bank: if a bank says the customer is liable, it must establish that, rather than asking the customer to prove innocence.

A deposit is money the bank owes back to the depositor, so it is a claim on the bank and is shown under liabilities in Form A of the Third Schedule to the Banking Regulation Act, 1949, along with capital, reserves and surplus, borrowings and other liabilities and provisions.

The correct answer is C, in default or expected to be in default soon.

CASA stands for current account and savings account balances. A current account earns no interest and a savings account earns a low rate, so the money a bank collects through them costs it far less than any other source, and gathering such balances from lakhs of individuals is exactly what…

The committee to review governance of boards of banks in India, chaired by P. J. Nayak, reported in 2014 that public sector banks were handicapped by the manner of appointment of their directors and by the government's dual role as owner and policy maker, and it proposed transferring the government's…

The Special Drawing Facility is short-term, secured lending to States, but it is cheaper than the repo rate and comes before ordinary WMA, not after it.

The fund was created in 1999 in the Public Account of India, all small savings collections flow into it, and the Centre and the States draw loans from it, which is why small savings are treated as a source of government borrowing.

CASA is short for current account and savings account, and the CASA ratio is current plus savings deposits divided by total deposits, shown as a percentage.

The Forward Markets Commission had regulated forward and commodity derivative trading since 1953 under the Forward Contracts (Regulation) Act 1952 and worked under the Ministry of Finance in its last years; it was merged into the Securities and Exchange Board of India on 28 September 2015, the first merger of…

The Reserve Bank of India set up a Working Group under S. H. Khan, then chairman of IDBI, to examine the roles of development financial institutions and banks; its 1998 report recommended that the two be harmonised and that India move towards universal banking, which is why the idea is…

Net interest income, written as NII, is the core earning of a bank: the interest it collects on advances and investments less the interest it pays on deposits and borrowings.

ICICI was set up as a development financial institution for long-term industrial finance, and in 2002 it merged into its own banking subsidiary ICICI Bank.

The credit-deposit ratio, usually written as the CD ratio and given in per cent, shows how much of every hundred rupees of deposits a bank has lent out.