In 2014, Bandhan Financial Services, a microlender with headquarters at ______, was granted in-principle approval by RBI to start a universal bank.
- A.Kolkata
- B.Mumbai
- C.Pune
- D.Lucknow
Correct answer
Explanation
The correct answer is A, Kolkata. Bandhan began in 2001 at Kolkata as a microfinance body serving poor women in eastern India, and its head office has stayed in that city. In April 2014 the Reserve Bank gave in-principle approval for a universal bank to just two applicants - Bandhan Financial Services and IDFC Limited - out of twenty-five who applied, and Bandhan Bank opened for business in August 2015. It was the first bank of its kind to be set up in eastern India after independence, and the first microfinance lender in the country to turn into a full-service bank. Option B is wrong because Mumbai houses the Reserve Bank and many private banks, but not Bandhan. Option C is wrong because Pune is the home of Bank of Maharashtra. Option D is wrong because Lucknow has no connection with Bandhan. Exam tip: 2014 universal bank licences - Bandhan of Kolkata and IDFC; both began operations in 2015.
Practice Questions
View allWhich of the following is/are credit rating agency/agencies in India?
- A.CRISIL
- B.CARE
- C.ICRA
- D.All of the above
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CRISIL, CARE and ICRA are all credit rating agencies registered with SEBI, which regulates such agencies under its Credit Rating Agencies Regulations of 1999.
Read the full explanation →Which of the following statements about the India Post Payments Bank (IPPB) is/are correct? 1. It has been incorporated as a Public Limited Company. 2. It started its operation by establishing two pilot branches at Hyderabad and Varanasi. Select the correct answer using the code given below.
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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IPPB was incorporated as a public limited company, but its two pilot branches opened at Raipur and Ranchi, not at Hyderabad and Varanasi.
Read the full explanation →Consider the following statements : 1. National Payments Corporation of India (NPCI) helps in promoting the financial inclusion in the country. 2. NPCI has launched RuPay, a card payment scheme. Which of the statements given above is/are correct ?
- A.1 only
- B.2 only
- C.Both 1 and 2
- D.Neither 1 nor 2
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The National Payments Corporation of India was set up in 2008 as the umbrella body for retail payments in the country, on the initiative of the Reserve Bank of India and the Indian Banks' Association, under the Payment and Settlement Systems Act, 2007.
Read the full explanation →Consider the following statements about the Non-Banking Financial Companies (NBFCs) in India : 1. NBFCs cannot accept demand deposits. 2. All the NBFCs operating in India have to be registered with the RBI. 3. NBFCs form part of the payment and settlement system and can issue cheque drawn on itself. 4. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation (DICGC) is not available to the depositors of deposit taking NBFCs. Which of the statements given above is/are correct ?
- A.1 and 4
- B.1, 2 and 3
- C.4 only
- D.2, 3 and 4
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These are two of the three ways the RBI itself says an NBFC differs from a bank. An NBFC lends and invests like a bank, but it cannot accept demand deposits such as savings or current accounts, so statement 1 is correct.
Read the full explanation →Which of the following is not included in the assets of a commercial bank in India?
- A.Advances
- B.Deposits
- C.Investments
- D.Money at call and short notice
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Deposits are money the bank owes to its customers, so they sit on the liabilities side of its balance sheet.
Read the full explanation →