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Saturday, December 1, 2012

IBPS BANK EXAMINATIONS RAPID READING EXERCISE- PART: 009





01.            Banking regulation act, 1949 does not at all apply to – primary agricultural credit societies and cooperative land mortgage banks
02.            As per the provisions of section 12 of the Banking Regulations act, 1949, the minimum ratio between the authorized, subscribed and paid up capital of a banking company should be 4:2:1
03.            Under the provisions of section 35(b) (ii) of the Banking Regulation Act, 1949, inspection of branches of Indian banks situated abroad is to be carried out by – RBI
04.            The first public sector bank to issue capital to public is – Oriental Bank of Commerce
05.            The New Private Sector Banks have been authorized to be set up under the new liberalization policy and the minimum paid up capital should be – Rs. 200 crore
06.            The Banking Companies act, 1949 was enacted to consolidate and amend the law relating to banking companies with effect from 1.3.1966 and the name of the act has been changed to – The banking regulation act
07.            The management of SEBI consists of – chairman and five members
08.            The following is the reason for the success of mutual fund – mutual fund scheme offers to every investor security, steady growth, regular income and easy liquidity; a small investor gets the professional expertise of the fund managers of the mutual fund and it carries tax breaks and this benefit is passed on the investor
09.            The individual investor can claim tax exception for both principal amount and income from these units under – Sec 80 E of the information technology act
10.            The main objectives of special electronic fund transfer scheme – SEFT – it is safe; secure and same day electronic inter bank transfer of funds across the country
11.            Treasury bill is – negotiable security
12.            RBI as the agent of the central government issues – treasury bills
13.            The treasury bills are issued at a – discount
14.            NABARD extends refinance to – State Land Development Banks, State Cooperative Banks; Regional Rural Banks and Commercial Banks and other financial institutions approved by RBI
15.            Automatic refinance scheme is available to the persons financed under – the scheme of setting up of agriclinic and agribusiness centers; rural non farm sector (investment credit) upto Rs. 15 lakhs and composite loan scheme
16.            The objectives and functions of IDBI include – to provide technical and administrative assistance for promotion or expansion of industry; to undertake market and investment research and survey technical and economic studies in connection with development of industry and to act as lender of last resort and to finance projects that are in conformity with national priorities
17.            For availing refinance from IDBI – the industrial unit should not be SSI; promoter’s contribution should be 25% of project cost and debt equity ratio should not be more than 2:1
18.            Central Cooperative Banks – serve as the connecting links between State Cooperative Banks and Primary Credit Societies; finance the primary credit societies which balance the excess and deficiency in their resources but do little commercial banking and are closer to the primary societies than an apex bank
19.            The primary function of a central cooperative bank is – to mobilize the resources in the district for financing its members; to channelize the flow of funds from the state cooperative banks and to mobilize deposit from state government
20.            Diversification refers to entering attractive opportunities.
21.            Diversification means the activities outside the existing businesses of the firm
22.            The various types of diversification generally observed by the business – concentric diversification, horizontal diversification and conglomerate diversification
23.            The world over most of the supervisory authorities have adopted the following as the basis of assessment of capital adequacy – risk assets ratio system
24.            The committee on Banking and Regulations and Supervisory practices which released the agreed frame work on international convergence of capital measures and capital standards in July, 1988 is popularly known as – Basle committee
25.            Basle committee adopted weighted risk assets approach which assigns weights to – on balance sheet exposure of a bank and off balance sheet exposure of a bank
26.            CBS – Core Banking Solution
27.            The benefits of Core Banking Solutions – benefit of not carrying the cash from one place to another; depositing money anywhere in the country where the bank is present and instant updating of the accounts
28.            Network can be defined as – a system of communication between various computers used by different users make use of.
29.            Retail banking refers to provision of the basic services of a bank to the individuals
30.            The following are categorized under retail banking – personal loans to individuals; vehicle loans; home loans and credit cards
31.            The reduction in the SLR by RBI – will augument the resources of scheduled commercial banks
32.            Under sections 20, 21 and 21A of the RBI act, 1934, RBI manages the public debt and issues new loans on behalf of the central and state governments
33.            Social control of banks was introduced in the year – 1967
34.            The following form the part of general insurance – fire, burglary, theft, marine, household, vehicles etc
35.            FDMA means – Frequency Division Multiple Access
36.            Full form of ERNET – Educational and Research Network
37.            Application of VSAT in bank is – inter branch reconciliation; funds and securities movement; payment system and monitoring and MIS reporting
38.            The various facilities offered by banks through tele banking – balance enquiry; enquiry about collection or specific credit/debit transactions; transfer of funds and request for statement of accounts etc.
39.            Home banking refers to – how banking is an extended version of tele banking; in home banking the customer is able to access his bank account from his home for availing a variety of services which is made available and home banking is availed through the customer’s personal computer attached to a telephone line and modem.
40.            For availing home banking facility, a client should have the following – personal computer, modem and telephone line
41.            The functions of IRDA – it has the power to specify the code of conduct for surveyors and loss assessors; it has power to regulate investment of funds by insurance companies; it has power to supervise the functioning of tariff advisory committee and it has duty to regulate promote and ensure orderly growth of the insurance and re-insurance business in the country
42.            The compelling reasons for bank nationalization are – concentration of which and economic power in the hands of industrialists and businessmen; branch expansion was confined to urban areas and rual areas were being neglected; sectors like agriculture small scale industries and the other deserving sectors were outside the purview of bank lending operations and various malpractices indulged in by banks under private ownership
43.            Regional Rural Banks are allowed to pay half per cent additional interest on savings accounts and time deposits less than three years
44.            The regulatory authority for Regional Rural Banks is RBI and NABARD
45.            Bank rate means the standard rate at which the RBI is prepared to buy or rediscount bills of exchange other commercial paper eligible for purchase under the RBI act 1934
46.            When RBI desires to restrict expansion of credit it raises the bank rate
47.      In periods of depression when the Reserve Bank of India desires to encourage the banking system to create more credit it reduces the bank rate
48.            Sub section 12AB of system 17 of the RBI act, 1934 defines the term: Repo
49.     Repo is an instrument for borrowing the funds by selling securities of the central government or a state government or of such securities of a local authority as may be specified in this behalf by the central government or foreign securities, with an agreement to repurchase the said securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed
50.            Sub section 12AB of section 17 of the RBI act 1934 defines the term – Reverse repo rate

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