Banking Awareness Quiz – Set 103

Hello Aspirants,
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

  1. The banks will be licensed as payments banks under ______ of the Banking Regulation Act, 1949.
    A. Section 21
    B. Section 22
    C. Section 23
    D. Section 24
    E. None of the Above
    Answer & Explanation
    B. Section 22
    Explanation:
    The payment banks will be licensed as payments banks under Section 22 of the Banking Regulation Act, 1949 and will be registered as public limited company under the Companies Act, 2013.
  2. Payment banks can accept a restricted deposit which is currently limited to _______ per customer account.
    A. Rs.1 lakh
    B. Rs.3 lakh
    C. Rs.2 lakh
    D. Rs.5 lakh
    E. None of the Above
    Answer & Explanation
    A. Rs.1 lakh
    Explanation:
    Payment banks can accept a restricted deposit which is currently limited to Rs. 1 lakh per customer account.
  3. Payment Banks can not issue ________
    A. Credit Card
    B. Debit Card
    C. loans
    D. Both (B) and (C)
    E. Both (A) and (C)
    Answer & Explanation
    E. Both (A) and (C)
    Explanation:
    Payment banks cannot issue loans and credit cards while at the same time current account and savings accounts can be operated by such banks.
  4. Any acquisition by the Payment Banks that are more than ____ will require approval of the RBI.
    A. 5%
    B. 10%
    C. 15%
    D. 20%
    E. None of the Above
    Answer & Explanation
    A. 5%
    Explanation:
    Any acquisition of more than 5% will require approval of the RBI.
  5. Which of the following services can be offered by Payment Banks?
    A. Debit Cards
    B. Online Banking
    C. Mobile Banking
    D. All of the Above
    E. None of the Above
    Answer & Explanation
    D. All of the Above
    Explanation:
    Payments banks can issue services like ATM cards, debit cards online banking and mobile banking.
  6. _______ percentage of Payment Bank’s branches must be in the unbanked rural area.
    A. 25%
    B. 10%
    C. 15%
    D. 20%
    E. None of the Above
    Answer & Explanation
    A. 25%
    Explanation:
    25% of Payment Bank’s branches must be in the unbanked rural area.
  7. Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by ________ recommended the formation of a new category of bank called payments bank.
    A. NR Madhawan Menon
    B. Bimal Jalan
    C. Nachiket Mor
    D. Y.H. Melagam
    E. None of the Above
    Answer & Explanation
    C. Nachiket Mor
    Explanation:
    Committee on Comprehensive Financial Services for Small Businesses and Low Income Households, headed by Nachiket Mor recommended the formation of a new category of bank called payments bank.
  8. Reserve Bank of India gave “in-principle” licences to _______ entities to launch payments banks.
    A. 10
    B. 11
    C. 12
    D. 13
    E. None of the Above
    Answer & Explanation
    B. 11
    Explanation:
    Reserve Bank of India gave “in-principle” licences to 11 entities to launch payments banks. They are:-
    Aditya Birla Nuvo
    Airtel M Commerce Services
    Cholamandalam Distribution Services
    Department of Posts
    FINO PayTech
    National Securities Depository
    Reliance Industries
    Dilip Shanghvi, Sun Pharmaceuticals
    Vijay Shekhar Sharma, Paytm
    Tech Mahindra
    Vodafone M-Pesa.
  9. Which of the following surrendered their “in-principle” to launch payments banks?
    A. Cholamandalam Distribution Services
    B. Dilip Shanghvi, Sun Pharmaceuticals
    C. Tech Mahindra
    D. All of the Above
    E. None of the Above
    Answer & Explanation
    D. All of the Above
    Explanation:
    Three of the 11 entities have surrendered their licenses. They are “Chalomandalam Distribution Services”, “Dilip Shanghvi, Sun Pharmaceuticals” and “Tech Mahindra”.
  10. The “in-principle” license is valid for _____months within which the entities must fulfil the requirements.
    A. 12 Months
    B. 14 Months
    C. 18 Months
    D. 24 Months
    E. None of the Above
    Answer & Explanation
    C. 18 Months
    Explanation:
    The “in-principle” license is valid for 18 months within which the entities must fulfil the requirements.