Question 1

The first Destination Bank to launch debit card based e-mandates On NPCIs E-Mandate API Platform.

Accepted Answer

Kotak Mahindra Bank is the first debit card based authentication solution on NPCI's (National Payments Corporation of India) e-Mandate (electronic mandate) API (Application Program Interface) platform first ever Destination Bank to go live with both Net Banking and Debit Card-based e-mandate authentication. The main objective of this initiative is to enable Kotak customers to create electronic mandates (similar to the former eNACH with Aadhaar + OTP) (eNACH- Electronic National Automated Clearing House; OTP- One Time Password) via both debit card and net banking provision. As API based e-mandates are customer-friendly, fast, frictionless and paperless, the initiative would help in making its customers' lives hassle free for handling recurring payments.

Question 2

Name the Non-banking finance company withdrew a release which has issued earlier regarding securing Rs 695 crore debt funding from NABARD.

Accepted Answer

Manappuram Finance, a Non-banking finance company withdrew a release which had issued earlier regarding securing Rs 695 crore debt funding from NABARD.Previously this Rs 695 crore funding will agree to use for priority sector lending.

Question 3

Which of the following bank has been categorized as a private sector lender following the acquisition of majority stake by Life Insurance Corporation?

Accepted Answer

As per RBI notification, IDBI Bank has been categorized as a private sector lender following the acquisition of majority stake by Life Insurance Corporation. IDBI Bank has been under the prompt corrective action framework of RBI that bans it from corporate lending and branch expansions, salary hikes and other regular activities. In January 2019, LIC completed the process of picking up a controlling 51% stake in the nearly crippled IDBI Bank. IDBI Bank has been categorized as a 'private sector bank' with effect from January 21, 2019.

Question 4

National Thermal Power Corporation has signed a term-loan agreement of Rs 2,000 crore with which of the following bank?

Accepted Answer

National Thermal Power Corporation (NTPC), the State-run power giant, has signed a term-loan agreement with Canara Bank to raise Rs 2,000 crore. The agreement would be used to part finance its capital expenditure. The loan has a door to door tenure of 15 years and will be utilised to part finance the capital expenditure of the NTPC.

Question 5

This bank crossed the Rs.6 trillion market capitalization after TCS and RIL.

Accepted Answer

HDFC Bank Ltd crossed the Rs6 trillion market capitalization mark for the first time, making it only the third Indian firm-after Tata Consultancy Services Ltd (TCS) and Reliance Industries Ltd (RIL)-to achieve the milestone. RIL is the most valued company in India with a market cap of Rs8.50 trillion, followed by TCS at Rs7.48 trillion.

Question 6

This bank raises Rs 487 crore through private placement of Tier II bonds.

Accepted Answer

Karur Vysya Bank announced that it has raised Rs 487 crore through Basel-III compliant bonds for funding its growth plans. The decision was taken in the Capital Raising Committee of the board. The committee allotted 48,700 BASEL-III compliant unsecured, redeemable, non-convertible tier-II bonds of Rs 1,00,000 each, totalling to Rs 487 crore and the capital raising was done on private placement basis. The instrument will be listed on NSE.

Question 7

ICICI Prudential Mutual Fund launched ICICI Prudential Bharat Consumption Scheme to get advantage from the Indian consumption market. The minimum investment of this scheme is;

Accepted Answer

ICICI Prudential Mutual Fund launched ICICI Prudential Bharat Consumption Scheme to get advantage from the Indian consumption market, which is considered as one of the fastest growing consumption markets globally. Nifty India Consumption Index is the benchmark for the Scheme. It will be managed by Rajat Chandak, Dharmesh Kakkad and Priyanka Khandelwal will manage the overseas investments. Minimum investment of this scheme is Rs 5,000 and in multiples of one rupee thereafter. Penalty for leaving the scheme is 1 percent if investments are redeemed within 12 months from the date of allotment.

Question 8

Which financial institution has imposed fines on prepaid payment instrument issuers for violating norms?

Accepted Answer

The Reserve Bank of India on May 3, 2019 announced that it has imposed penalties on five prepaid payment instrument (PPI) issuers, including Vodafone m-pesa and PhonePe, for violation of regulatory norms.

Question 9

For which bank Reserve Bank of India has slapped a penalty of Rs 2 crore for non-compliance of regulatory directions?

Accepted Answer

The Reserve Bank of India has slapped a penalty of Rs 2 crore on Punjab National Bank for non-compliance of regulatory directions with regard to SWIFT operations. SWIFT is a global messaging software used for sharing information on inter-bank transactions by financial entities.

Question 10

Which bank has slipped down and attains 10th spot as most valued bank?

Accepted Answer

For the 1st time, private lender YES Bank Ltd, in terms of market valuation, has slipped by 3 levels to come down to the 10th spot. The position of the bank has come down due to its shares collapsing over 30% in the last 4 sessions after YES bank had reported a net loss of Rs. 1500 crore in its March quarter earnings. The most valued Indian bank with a market cap of Rs. 6.34 trillion is HDFC Bank Ltd. This is followed by (SBI) State Bank of India and Kotak Mahindra Bank with market cap of Rs 2.76 trillion and Rs 2.68 trillion, respectively. Shares of YES Bank were down 5.3% at Rs.166.30 on the 6th of May, 2019 and its market capitalization was Rs. 38,515.71 crore.

Question 11

Name the Bank which got RBI approval for holding up to 9.9 percent stake in Bandhan Bank.

Accepted Answer

The Reserve Bank of India (RBI) has given its in-principle approval to Housing Development Finance Corporation (HDFC) Ltd for acquiring 9.9 per cent stake in Bandhan Bank following the Gruh Finance deal. Gruh Finance, the affordable housing finance arm of HDFC Ltd, was taken over by Bandhan Bank in a share-swap deal in January. After the deal was announced, HDFC made an application to the RBI for holding shares in Bandhan Bank. Recently RBI gave its approval to HDFC to acquire the shareholding of up to 9.9 per cent of the paid-up capital of Bandhan Bank upon the effective date of the scheme of amalgamation.

Question 12

Which of the following financial service company won the Celent Model Bank 2019 Award?

Accepted Answer

Fincare Small Finance Bank (SFB) honoured with the prestigious Celent Model Bank 2019 Award in Financial Inclusion category, for 'Redesigning Lending to Reach Small Businesses'. The award recognizes LAP (Loans against Property) D.Lite, which is a tab-based solution designed and developed in-house by Fincare SFB for instant underwriting of loans against property targeted at micro and small enterprises. The Award was announced on its 12th anniversary in 2019 and was organized by Celent in New York. The other banks to receive the award in other categories were Bank of America, CIBC, Fidor Bank, HSBC, Rabobank, and Santander.

Question 13

Which bank receives NCLT approval for merger with Bharat Financial Inclusion?

Accepted Answer

National Company Law Tribunal (NCLT) approved merger of private sector lender IndusInd Bank with Bharat Financial Inclusion (BFIL), a microfinance company. Last year, IndusInd Bank received 'No Objection' from Reserve Bank of India, National Stock Exchange and Bombay Stock Exchange As per the report, the merger is expected to complete within 2-4 weeks. IndusInd Bank Ltd's share price is currently at Rs1,686.85, up by Rs32.25 or 1.95%, from its previous close of Rs1,654.60 on the BSE. The current market cap of the company is Rs 99,750.17crores.

Question 14

Which bank has reduced its benchmark lending rate by 0.05% points?

Accepted Answer

State-owned Allahabad Bank announced a reduction in benchmark lending rate by 0.05 percentage points across various tenors. The marginal cost of funds-based lending rate (MCLR) for a one-year loan has been reduced to 8.60% from 8.65% effective May 14. Most of the loans including housing loans are benchmarked against MCLR for one year.

Question 15

What is the new Repo Rate revised by the six-member monetary policy committee chaired by RBI Governor Shaktikanta Das?

Accepted Answer

The Reserve Bank of India (RBI) has cut its repo rate under Liquidity Adjustment Facility (LAF) by 25 basis points to 6.0% in its first bi-monthly policy statement of the current financial year FY20, with immediate effect. The move will cheer markets and investors and is the second consecutive rate cut by the RBI. It has also maintained the policy stance neutral and lowered the retail inflation and GDP forecasts. This is the second consecutive rate cut from RBI under new Governor Shaktikanta Das, after a rate cut in February 2019.

Banking Questions