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What is ‘E’ in FERA?
Solution: FERA stands for Foreign Exchange Regulation Act. It was promulgated in the year 1973. It came into effect on January 1, 1974. Sec. 29 of FERA referred directly to the operations of Multi-national Companies in India. According to the Section, all non - banking foreign branches & subsidiaries with foreign equity exceeding 40% had to attain permission to institute new undertakings, to obtain partly/wholly any other company or to purchase shares in existing companies.
Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. This portion is called.
Banks in India are required to maintain a portion of their demand and time liabilitieswith the Reserve Bank of India. This portion is called Cash Reserve Ratio.
MSF is the rate at which banks can borrow overnight from RBI. What is the full form of MSF?
MSF (Marginal Standing Facility Rate) is the rate at which banks can borrow overnight from RBI. This was introduced in the monetary policy of RBI for the year 2011-2012. Banks can borrow funds through MSF when there is a considerable shortfall of liquidity.
Which of the following institutions has introduced Rupay debit card?
NPCI (National Payments Corporation of India), has launched RuPay for the Ecommerce space. Initially, RuPay will process only Debit and ATM cards through the National Switch set up by NPCI. At end of 2014, RuPay will also venture into credit card issuance to widen its customer reach considerably. RuPay has been promoted by ten of the leading domestic Banks – The State Bank of India, Punjab National Bank, Canara Bank, Bank of Baroda, Union Bank of India, Bank of India, ICICI Bank, HDFC Bank, Citibank and HSBC. It was mainly set up to compete with Visa Inc. and Mastercard Inc., the international card schemes.
When a bank dishonours a cheque it is called____.
When a bank dishonours a cheque it is called nullifying of the cheque.
A cheque is a negotiable instrument. Crossed and account payee cheques are not negotiable by any person other than the payee. The cheques have to be deposited into the payee's bank account.
When a cheque is dishonoured, the drawee bank immediately issues a ‘Cheque Return Memo’ to the banker of the payee mentioning the reason for non-payment. The
payee’s banker then gives the dishonoured cheque and the memo to the payee. The holder or payee can resubmit the cheque within three months of the date on it, if he believes it will be honoured the second time.
Narrow Money, a term in monetary aggregates, is denoted by ____.
M0 and M1, also called narrow money, normally include coins and notes in circulation and other money equivalents that are easily convertible into cash. M2 includes M1 plus short-term time deposits in banks and 24-hour money market funds. M3 includes M2 plus longer-term time deposits and money market funds with more than 24-hour maturity. The exact definitions of the three measures depend on the country. M4 includes M3 plus other deposits. The term broad money is used to describe M2, M3 or M4, depending on the local practice.
Under which of the following act was the 'Banking Codes and Standards Board of India' registered as a society?
The Banking Codes and Standards Board of India was registered as a society under the Societies Registration Act, 1860, in February 2006. The board functions as an independent and autonomous body. Membership of BCSBI is voluntary and open to scheduled banks.
Which of the following states has no Regional Rural Bank (RRB)?
Goa state has no Regional Rural Bank (RRB). Regional Rural Banks were established under the provisions of an Ordinance passed on September 1975 and the RRB Act. 1976 to provide sufficient banking and credit facility for agriculture and other rural sectors. Note: Regional Rural Banks (RRBs) are local level banking organizations operating in different States of India.
The Securities and Exchange Board of India (SEBI) has proposed capping cross-holding among credit rating agencies (CRAs) at ____.
The Securities and Exchange Board of India (Sebi) has proposed capping cross-holding among credit rating agencies (CRAs) at 10%, and suggested stringent net worth and ownership criteria. Currently there is no restriction on shareholding in rating agencies. Sebi’s 10% cap draws parallels with such norms in the banking industry. Reserve Bank of India norms say that a bank cannot hold more than a 10% stake in another bank.
Prompt Corrective Action, or PCA is an important step taken by the government with respect to which of the following?
To ensure that banks don't go bust, RBI has put in place some trigger points to assess, monitor, control and take corrective actions on banks which are weak and troubled. The process or mechanism under which such actions are taken is known as Prompt Corrective Action or PCA.
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