Banking & Financial Awareness Mixed Quiz: Set 6

The tools of the Reserve Bank are divided into quantitative tools, which change the total amount of credit in the system, and qualitative or selective tools, which change the direction in which that credit flows.

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.

The list of officially valid documents in the KYC rules is closed and contains the passport, the driving licence, proof of possession of an Aadhaar number, the voter identity card issued by the Election Commission, a job card issued under MGNREGA and signed by an officer of the state government…

A microfinance institution exists to lend small sums to poor and low-income people who cannot offer the security an ordinary bank asks for.

SWIFT is the international messaging network over which banks send payment and guarantee instructions across borders.

A current account is meant for traders, firms and companies that need to receive and pay money many times a day.

The Basic Savings Bank Deposit Account replaced the earlier no-frills account as the vehicle of financial inclusion.

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.

The Indian Financial System Code is an eleven character alphanumeric code that identifies a particular bank branch taking part in the electronic payment systems of the Reserve Bank of India.

The Basel Norms are international standards for banking supervision. They are issued by the Basel Committee on Banking Supervision, which works under the Bank for International Settlements at Basel in Switzerland.

Banks classify customers as low, medium or high risk when the account is opened, on the basis of identity, social and financial standing and the nature of the expected business.

The Banking Ombudsman is a senior officer appointed by the Reserve Bank of India to hear and settle customer complaints about deficiency in banking service.

RTGS was designed for large value payments, so the Reserve Bank of India fixed a floor of two lakh rupees for a single transaction and set no ceiling at all.

Section 4 of the Negotiable Instruments Act, 1881 defines a promissory note as an instrument in writing, signed by the maker, containing an unconditional undertaking to pay a certain sum of money to or to the order of a certain person.

The Deposit Insurance and Credit Guarantee Corporation, a wholly owned subsidiary of the Reserve Bank of India set up in 1978, insures deposits in commercial banks, regional rural banks, local area banks, payments and small finance banks and cooperative banks.

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.

CASA is the combined balance a bank holds in the current accounts and the savings accounts of its customers. These are the cheapest deposits a bank can have, because a current account pays no interest at all and a savings account pays very little, unlike a fixed deposit.

A small account is opened for a person who has no officially valid document, on the strength of a self-attested photograph and a signature or thumb impression made before a bank officer.

Under the asset classification norms of the Reserve Bank of India, a term loan becomes a Non Performing Asset when interest or an instalment of principal stays overdue for more than ninety days.

In a recurring deposit the customer promises to pay a fixed sum every month for a chosen period, and the bank pays interest at a rate close to that on a term deposit of the same maturity, the whole amount being returned with interest at the end.