Which of the following is/are credit rating agency/agencies in India?
- A.CRISIL
- B.CARE
- C.ICRA
- D.All of the above
Correct answer
Explanation
The correct answer is D, all of the above. CRISIL, CARE and ICRA are all credit rating agencies registered with SEBI, which regulates such agencies under its Credit Rating Agencies Regulations of 1999.
A credit rating agency judges how likely a borrower, such as a company, a bank or a state body, is to repay a bond or loan on time, and expresses it as a grade like AAA or BBB. Investors use these grades to price risk. CRISIL, set up in 1987, was India's first rating agency and is now majority-owned by S&P Global. ICRA was set up in 1991 and is linked to Moody's. CARE Ratings began in 1993. Other SEBI-registered agencies include India Ratings and Research, Brickwork Ratings and Acuité.
A, B and C are each wrong as answers on their own, because each one is only one of several correct names; choosing one would leave out the other two, which are equally rating agencies.
Exam tip: CRISIL 1987 (first), ICRA 1991, CARE 1993; all regulated by SEBI.
Practice Questions
View allWhich 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
Show answer
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
Show answer
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
Show answer
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
Show answer
Deposits are money the bank owes to its customers, so they sit on the liabilities side of its balance sheet.
Read the full explanation →Which one of the following is considered as an agency function of commercial banks in India ?
- A.Acceptance of deposits
- B.Investment of surplus funds
- C.Acceptance of income tax payments
- D.Providing overdraft facilities
Show answer
When a bank collects tax, it acts as an agent on behalf of its customer and the government, which is an agency function.
Read the full explanation →