Darpan 2018 PDF

Promotion Made Easy
DARPAN
(BOOK ON RBI POLICIES -01.01.2016 TO 31.12.2017 & CURRENT BANKING WITH MCQ)
FOR SCALE 2 & ABOVE PROMOTION TEST
(Updated up to 14.01.2018)
Sanjay Kumar Trivedy

sktrivedycan@gmail.com / 9987519725
Preface
Dear Friends,
Indian Banking is in its most exciting phases. The impact of liberalization has been wide spread and has
thrown up both challenges and opportunities for bankers. Ever increasing competition is a part of
professional life and the banker who is ahead of his peers in terms of knowledge skill, technology and
quick response will be the winner.
Banking/Financial sector in our country is witnessing a sea change and banker’s business has become
more complex & difficult in this driven era of knowledge & technology. There are mass retirements
happening due to superannuation & many new recruits are joining the Bank. More than 70% staff
strength is newly recruited in last seven to eight years.
An official working in the Banking sector has to keep pace with Updated knowledge, skills & attitude,
as the same is required everywhere. Employees play vital role in Banking/service organizations and
they need to be transformed into Knowledge Assets to remain competitive in the dynamic environment
and it is more so with Banks as they are very service sensitive. Thus it is imperative for the bank staff
to serve the clientele with updated information of bank's products & services to accomplish corporate
objectives.
It is with a sense of great delight that I am presenting this book “DARPAN”on RBI Policies/guidelines
issued during 01.01.2016 to 14.01.2018, subject –wise and Current Banking, Economy & Finance with
Possible Multiple Choice Questions which covers nearly above 50% of questions asked in various
promotions tests. Latest RBI Policies Covers nearly 25-30% direct questions and if you take two years
policies then 40-50% direct questions. Each Section is divided into two parts of which part –a is Jan-
Dec. 2017 and part-b is Jan-Dec. 2016 RBI policies. Study materials have been taken from various
standard sources and updated upto 14.01.2018. The beauty of this book is written in very siple & lucid
manner so that it will be understand by every one. This book is specially designed for promotion test
from Scale one to two & above as well as very useful for all those who are appearing for various
competitive examinations including IBPS. Generally 80-85% questions will be based on general
banking and 10-15% question will be from assets & liability products of specific bank say canara bank
asked in internal promotion test of various cadres and the same has been witnessed for last more
than 8-10 years and for this very purpose basic banking knowledge will be required.The book is
prepared based on last more than 15 years of experience and pattern of questions asked in the
examination.
I have covered detailed analysis of latest syllabus based on memory based questions for Promotion
test in banking industries in general and Canara Bank in Particular. There are various study materials
available in the market but aspirants have very limited time for preparation. In order to reduce
pressure on aspirants, I have been compiling books/booklets on various topics in the name of
Promotion Made easy since long and this time also, I am coming with Quick book on Promotions –
PADONNATI, Hand book on banking, Mock Test.
During preparation of this book, I have received tremendous support and inspirations from my wife
Mrs Renu, who is working as Chief Manager / Scale IV in Bank of Baroda and my son Master Ritwiz
Aryan who is studying class XI.
All possible care is taken to provide error free information, however, readers may note that the
information given herein is merely for guidance/reference and they need to refer the relevant circulars
& Manuals for full details.
I solicit your views on the content and quality of the topics for further improvement.
I wish all the best to the readers of this book.
Arise, Awake and stop not till the goal is reached"... Swami Vivekananda
Date: 19.01.2018 Sanjay Kumar Trivedy

sktrivedycan@gmail.com / 9987519725
Compiled by Sanjay Kumar Trivedy, Chief Manager, Canara Bank,Shrigonda, Ahmednagar, Maharashtra 1 | P a g e
About the Author
Mr. Sanjay Kumar Trivedy (Native: Motihari, Bihar), Presently working as Chief Manager ( Scale-
IV) in Canara Bank, Shrigonda branch in Ahmednagar distt. of Maharashtra state. He Joined
Canara Bank as DRO/PO (AEO) on 10.03.1997 and and worked in various places, starting from
Maujgarh branch (1997-2000), Near Abohar(Punjab), Sirsa Main- Haryana (2000-2004), BMC,
Jalandhar (2004-2006) Toiladungari, Sakchi, Jamshedpur(2006-2009), Jhalak near Chaibasa (2009-
2011), J B Nagar, Andheri East , Mumbai ( 2011-2013) and then Faculty as well as College in
charge ( Principal ) in Regional Staff Training College, Mumbai (2013-2016), Govt.Link Cell, Nagpur
(01.05.2016 to 15.07.2017), Itwari Branch, Nagpur ( 17.07.2017 to 15.09.2017 ) and then
Shrigonda Branch ( Since 16.09.2017…. ).He won more than 200 awards in various fields of Banking
by his Bank – Canara Bank, which includes twice gold coin for CASA mobilization. His best
achievement was as an officer/AEO, he converted his Section: Agril Finance into Hi-tech Agril.
Branch at BMC, Jalandhar and while working in Jhalak branch near Chaibasa (Jharkhand), won
twice best Rural banker award from NABARD during 2009-10 &2010-11 in SHG credit linkage &
Farmers Club Formation. During this journey started from 1997 to till date he worked in almost all
area of Banking.
Mr. Sanjay Kumar Trivedy is M.Sc. (Agril), CAIIB, PGDCA, MBA, MBA (Finance),Diploma (IIBF) in
Rural Banking, Treasury, Investment and Risk Management, Commodity Derivatives for Bankers,
Advanced Wealth Management, Certificate (IIBF) in Trade Finance, Certificate in Anti-Money
Laundering / Know Your Customer, Certificate Examination in SME Finance for Bankers, Certificate
Examination in Customer Service & Banking Codes and Standards, Certificate Examination in CAIIB
- Elective Subjects ( Retail Banking & Human Resource Management) & Certificate Examination in
Microfinance
Mr. Sanjay Kumar Trivedy has teaching experience of more than 16 years, from Sirsa Main Branch
(2000-2004) , he started teaching to his colleagues/staff and in this long journey he has given good
results both in Promotion test as well as JAIIB /CAIIB examination. He has taken IIBF-JAIIB & CAIIB
classes at Mumbai. He has compiled/authored more than 20 books in last three years related
banking - JAIIB, CAIIB, Book on Promotion Test ( all cadres), Interview , Drishti (Current Banking
Topics –Interview book for Scale iv & above), Group Discussion, Certificate course on Customer
Service & BCSBI, AML& KYC, MSME Finance for Bankers, Book on Abroad Posting, Confirmation
Test for PO, Banking & Technology and many more books on day today banking and many more in
the offing.
Mr. Sanjay Kumar Trivedy is working in a mission mode to reduce knowledge gap among bankers
with objective to provide educational support free of cost to all in general and bankers in
particular with objective to empower Banker colleagues specially young banker who join the bank
in last more than one decade for their better productivity, Sense of satisfaction, Customer delight
with ultimate increase of quality banking business for their organisations.
He can be only contacted through e-mail: sktiibf@gmail.com & whatsapp no. : 9987519725
The best way to find yourself is to lose yourself in the service of others - Mahatma Gandhi
INDEX : DARPAN
SI. CONTENTS Page No.
No
1 BANKING LAW & POLICIES 06-15
2 LOANS & ADVANCES 15-17

3 PRIORITY SECTOR LENDING 17-21
3A AGRICULTURE 17-17
3B MSME 18-18
3C FINANCIAL INCLUSION & GOVT. SCHEMES 19-21
4 BASEL & RISK MANAGEMENT 21-23
5 NPA & RECOVERY MANAGEMENT 23-28
6 FOREX 28-34
7 DIGITAL BANKING 34-37
8 GENERAL BANKING 37-40
9 RECALLED & EXPECTED QUESTIONS : TEST YOURSELF 41-80
10. UYOURSELFQUESTIONS - 2015 80-94

CURRENT BANKING & FINANCE
11. QUESTIONS ON CURRENT BANKING & FINANCE 94-99
Disclaimer
While every effort has been made by me to avoid errors or omissions in this publication, any error or
discrepancy noted may be brought to my notice through whatsapp or e-mail to sktrivedycan@gmail.com
which shall be taken care of in the subsequent editions.
There are certain breakthrough moments when you began to think & See the field differently
(Please send Memory based questions on sktrivedycan@gmail.com)
2PROMOTION TEST SYLLABUS & QUESTION PAPER ANALYSIS ( SUBJECT WISE ) FOR
LAST ELEVEN YEARS (2007-2017)
S. Clerical Scale Scale Scal
No to Officer 1 to 2 2to 3 e 3
Topics /Subject/Syllabus ( No. of Questions)
to 4
A LAWS /ACT RELATED TO INDIAN BANKING 20-30 10-15 7-10 5-9
LEGAL ASPECTS/ BANKING LAW AND PRACTICE : RBI / BR Act, NI Act –

Holder / Holder in due course /Bill of Exchange : Case Studies , NI Act – Cheque – 20-30 10-15 7-10 5-9
validity / truncated,cheque / digital signature/ National Calendar (Saka Samvat)/ CTS
2010 std, Endorsement / Crossing, Bank and customer relationship,Types of customers
Minor / Joint accounts – Case study type, Partnership – case studies/ Limited liability
partnership,Joint stock company - Pvt / public company – min/max numbers / directors
MoA/ Articles of Assn/ Certificate of incorporation / Certificate of commencement /
Charge creation related, HUF / other provisions, COPRA, Garnishee order / Attachment
order –Case study type, Kind of securities and relevant ACT Provisions, Lien / Set-off,
SARFAESI ACT, DRT / Lok Adalat, CERSAI, RTI ACT, Stock Audit / Legal Audit,
Death Claim etc..
B DEPOSITS 22-30 11-18 7-13 -10
KNOW YOUR CUSTOMER (KYC) : KYC, KYC POLICY WITH LATEST

GUIDE LINES, CKYC,KYR,EKYC,OVD( Officially Valid documents), PAN No 6-10 3-5 2-4 2-3
related questions, AML,CTR ,STR,CCR, Risk Categorisation, Money mules
,transactions, BSBD A/cs/ Small Accounts etc..
CASA DEPOSITS – General Guidelines, Types of accounts, CASA Products and
various Products of CASAs, Nomination, Nomination process and claim settlement, 10-12 5-8 3-5 3-4
Status of the nominee / Minor as nominee / Relevant section of BR Act( Sec 45ZA to
ZF) ,Unclaimed deposits – DEAF, Govt. Small Saving Deposit Schemes (Senior
Citizens savings Scheme, PPF, Sukanya samriddhi a/c etc..
TERM DEPOSITS : TERM DEPOSITS – Procedural aspects as case study, RD / RD
Dhanvarsha / Other TD Products (KDR/FDR) Others – Rate of interest related , TDS 6-8 3-5 2-4 2-3
related questions etc..
C LOANS & ADVANCES 55-80 30-45 30-45 30-55
GENERAL ADVANCES : CRM policy – Exposure, CRM Policy –bench mark ratios 10-20 3-5 5-7 -11
/ Quick mortality / credit audits, Stock audit, MTR, Take over norms, CRE, CIBIL
/CIR- multiple CIRs, CERSAI ,Credit Risk Range, BASEL III, Capital structure /
components of capital structure, Risk weighted assets, Delegation of Power,
Categorisation of branches, Adhoc limits / TOD, Credit Approval Committee, MCLR,
Non fund based business – GTEE/LC, Other misc – JLF/MBA, CRILC, Non Fund
Based Business : BG/LC, Working Capital, Term Loan Appraisal,, Mortgage, Charge
Creation on Securities, Loan Documentation, Stamp duty, Limitation & Registration of
Loan Documentation etc..
BALANCE SHEET ANALYSIS / FINANCIAL STATEMENT ANALYSIS 3-5 3-4 2-3 2-3
Assets, Liabilities, Balance Sheet Format, Profit & Loss Accounts, Terminologies,
Ration analysis, Fund Flow, Cash Flow, Trends, Working Capital Assessment Methods,
NW,WCG,NWC, BEP, PV,NPV, IRR,DSCR,TL Appraisals etc..
PRIORITY SECTOR LENDING GUIDELINES : Targets and achievement, RBI
Guidelines, Exclusions / non-achievement of target ,RIDF / SIDF etc, Social 5-10 3-5 3-5 2-4
infrastructure / Renewable energy, Exclusions, Common Guidelines of PS Loans etc.
AGRICULTURE : General Guidelines – Margin/inspection/processing charges,
PMFBY, KCCs, Gold Loan, Kisan Tatkal ,Kisan Suvidha, Kisan Mitra, kisan OD, Intt. 6-10 5-8 4-7 4-7
Subvention, Development Loan ( Irrigation loan, Dairy loan etc ), Investment loans (
Farm Machinery, ALLHV etc ), Agri Clinics, Agri Business, Matasya Suraksha,
arirakshan /samiriddi, Other misc – various Cultures ,Seasons :rabi /kharif ,Farmers
Club, Lead Bank & Service Area Approach, Terminologies etc..
MSME : Micro, Small, Medium classification & definition, Mfg / service -investment 6-10 3-5 3-5 3-4
in P&M /Equipment, CIBIL / CIC, MSME Products, PMMY- MUDRA LOANS, .
CGTMSE, Credit Guarantee Enhancement scheme for SC, Start up India, Stand up
India, Make in India, Bank Code for MSME,CGF for Micro Units, CGT for Stand up
India, NEFS ,Revival & Rehabilitation of Sick units, GCC,LUCC,WCC,SCC
FINANCIAL INCLUSION: Weaker Section, Micr Credit, SHG/JLG – Janashree 3-6 2-3 1-2 1-2
Bima Yojana, Shiksha Sahayog Yojana, Financial inclusion, PMJJBY,PMSBY, APY
GOVT. SPONSORED SCHEME : PMEGP, DRI, DAY – NRLM /NULM. 5-8 4-5 3-4 3-4
PMAY,CRGFT for Low Income Housing etc
RETAIL LENDING SCHEMES : General Guidelines, Retail Lending Schemes, HL 6-10 3-5 2-3 2-3
schemes/ General Guidelines, HL – CRGFTLIH, EL General guidelines / Schemes, EL
Credit Guarantee schemes etc
NPA & RECOVERY : NPA Basic Concept, Restructuring – basic question, 10-12 3-5 5-8 5-8
CDR,SDR, S4S, NPA norms and Provisioning, Wilful defaulter / Non Co-operative
Borrower, Solvency & Bankruptcy Code Audits – Stress Audit / Credit Audit / Stock,
Audit / RBIA, OTS related Schemes, JLF,PCA, Revitalising NPA, Relief Measures for
Natural Calamities, SARFAESI Act 2002, ARC, Sale Purchase of NPA, DRT,DRAT,
Lok Adalat, Recovery Agents, Suit filing procedures for Recovery
D FOREIGN EXCHANGE 10-15 5-7 5-8 7-9
FOREIGN EXCHANGE : Terminologies – definitions, NRE / NRO/ FCNR/RFC / 10-15 5-7 5-8 7-9
EEFC- case study type one question, Remittances – LRS Scheme, ECB / FCCB/ Trade
Credit, UCPDC 600, Exports – Realisation / Star exporters /PC/PCFC, Bill of ladings /
other general guidelines, Gold Card for Exporters, Imports – BEF LCs – types,
Statements – GR follow up / XOS/BEF/R-return / Stat, MTSS,RDA,OCI,IFSC
BANKING UNITS,FTCA,MASALA BONDS,ECGC, FDI POLICY,FOREX
DERIVATIVES,SUPPLIERS’/ BUYERS’ CREDTS,INCO TERMS, Other Misc etc.
E DIGITAL BANKING & TECHNOLOGY 10-15 5-7 5-7 2-3
DIGITAL BANKING & TECHNOLOGY: RTGS / NEFT, NEPAL Remittances, 10-15 5-7 5-7 2-3
Terminology, MTSS, NPCI,PPI, MICR,IFSC,UTR,AEPS,SWIFT,SFMS, POS,Cards –
Debit / Credit / Intl Prepaid cards& various Cards, Basic of computer, Internet/ Mobile
banking, UPI – empower, BHIM, Our all DIGITAL Products etc.
F GENERAL BANKING 20-30 15-20 10-15 -12
GENERAL BANKING : BCSBI – term expansion / OSC credit /Complaints 15-20 8-15 7-10 5-9
redressal/ Customer day, Quotinng of PAN No ,DD / Cheque CTS specifications,Cash
General Guidelines / Remittances, Cash – Impounding & Counterfeit Detection, Cash
incentive / Clean note policy / Star series notes, Commission in respect of Govt
business, Door Step Banking / Safe Deposit lockers, Service Tax aspects, AIR / Cheque
drop facility, Service Charges – Local clearing, Tax related / TDS matters, Canara
Public Grievance Redressal system (CPGRS) / Customer Grievance handling
mechanism – time norms / charter of customer rights/ customer committees,
Demonetisation process, Banking Ombudsmen / Internal ombudsmen, DICGC /
FATCA/CRS
STAFF MATTERS & OFFICIAL LANGUAGE 2-5 2-3 1-3 1-3
STATEMENTS & RETURNS 2-3 1-2 1-2 1-2
G LATEST CONCEPT IN BANKING/ CURRENT BANKING & 10-12 3-7 3-7 5-9
INDIAN ECONOMY
LATEST CONCEPT IN BANKING/ INDIAN ECONOMY , UNION BUDGET , 10-12 3-5 3-7 5-9
RELATED TERMS,Payments Bank/ Small finance Bank, Financial Market/Money
market, Forward/Options /Futures /Derivative Products, Depository services – Demat,
. Gold monetisation, Soverign gold bonds, PMGKDS etc.
GRAND TOTAL 185 100 100 100
1.For all scales promotion test : 100 questions except in Case of Clerical to officer, total no. of question is 200 out of which 185
questions from Banking Sector and remaining 15 questions from English Language test – Comprehension, Cloze test, Common error,
Antonyms/Synonyms)
2. FOR PROOTION POLICY FROM SCALE 2 TO SCALE 4, Please go through Memo. No. 02/2018
RBI POLICY GUIDELINES DURING 2016-17 (JAN.2016 – DEC.2017)
1. Banking Law & Policy
Part – a ( Jan-dec 2017)
Important policy rates
Bank Rate 6.25 % w.e.f .(06.04.2017)
MSF 6.25 % w.e.f .(06.04.2017)
Cash Reserve Ratio 4.00 %
Statutory Liquidity Ratio 19.50 % w.e.f.(06.10.2017)
Repo Rate 6.00 % w.e.f. (04.10.2016)
Reverse Repo Rate 5.75 % w.e.f . (06.04.2017)
Base rate of our bank 9.15 %
ECNOS One Year MCLR+ 525 Basis Point (Cir 200/16) Base Rate+5 %
Foreign Currency ECNOS 12m LIBOR + 6.5% (IO/19/2010)
BPLR 14.45 % wef 01.01.2014
Clean Rate Base Rate + 7=16.40 % , Highest MCLR+7%
SB Rate 3.5 % wef 01.09.2017 for O/s Balance upto Rs. 50 lakhs
4.00 % w.e.f.01.09.201 for O/s Balance above Rs. 50 lakhs
OverNight MCLR 7.85 % ( w.e.f.07.12.2017)
One Month MCLR 7.90 % ( w.e.f. 07.12.2017)
Three Month MCLR 8.10 % ( w.e.f. 07.12.2017)
Six Month MCLR 8.15 % ( w.e.f. 07.12.2017)
One Year MCLR 8.30 % ( w.e.f. 07.12.2017)
Five Year SCSS 2004 8.30% (w.e.f.01.01.18 to 31.03.18)
PPF 1968 7.60% (w.e.f.01.01.18 to 31.03.18)
Kisan Vikas Patra 7.30% (w.e.f.01.01.18 to 31.03.18)
Sukanya Samriddhi Account Scheme 8.10 % (w.e.f.01.01.18 to 31.03.18)
Interest Rate on Small Saving Schemes Effective January 1, 2018
Rate of interest (%) from Rate of interest (%)
Compounding
Instrument 01/10/2017 To from 01/01/2018 to
frequency
31/12/2017 31/03/2018
Savings deposit 4 4 annually
1 year time deposit 6.8 6.6 quarterly
5 year recurring deposit 7.1 6.9 quarterly
5 year Senior Citizen Savings Scheme 8.3 8.3 quarterly and paid
5 year monthly income income scheme 7.5 7.3 monthly and paid
5 year National Savings Certificate 7.8 7.6 annually
Public Provident Fund 7.8 7.6 annually
7.5 (will mature in 115 7.3 (will mature in 118
Kisan Vikas Patra annually
months) months)
Sukanya Samriddhi Account Scheme 8.3 8.1 annually
INDIANECONOMY-IMPORTANTPARAMETERS
RBI's growth estimate for 2017-18 : 7.6%
GDP growth-2016-17 (revised estimate) : 7.1%
GDP@constant mkt prices (cr) : 10656925
GVA@2011-12 basic prices (cr) : 9857672
GDP projected by Govt. for 2017-18 : 16847455
Fiscal Deficit Target (2017-18) 3.2% of GDP : 546532 cr
Revenue Deficit Target (2017-18) 1.9.% 321163cr
Wholesale Price Index : 1.5%
Money Supply (M3) expansion : 12.9%
Exports during 2016-17 : 274.0 bn
Imports during (2016-17) : 379.6 Bn
Export target - 2017-18 (in $) : 310 bn
India's share in world merchandise 1.70%
export :
India's currency rating (S&P) : BB Postv
India's external debt (Jun 2017) US $ : 485.8 Bn
Tax-GDP ratio (2014-15) : 9.93%
Apr- Aug17:Export $ 118.6 bn$ Imports : 181.7 bn
Per capita Income 2015-16 (Rs.) : 93293
rd
Indian economy's ranking in PPP terms : 3
th
Indian economy's ranking in world in value: 10
POLICY RATES & OTHER INDICATORS AS ON 10.12.2017
BANK RATE 6.25% MCLR of major Banks 7.70-8.05%
CRR 4.00% FOREX RESERVES- Rs. (Billion) 25,894.1
SLR 19.5% FOREX RESERVES US $ Million 4,01,942.0
REPO RATE 6.00% SCB Total Deposits - (Billion) 1,08,471.5
Reverse REPO 5.75% SCB Total Credit - (Billion) 79,618.8
MSF 6.25% CREDIT- DEPOSIT RATIO 73.40%
 The Reserve Bank of India in its fifth bi-monthly monetary policy on 6th December, 2017 maintained a status quo on the
policy rate. The six-member monetary policy committee (MPC) voted 5:1 in favour of a not changing the policy repo rate, citing
various reasons such as the upside pressures from food and fuel prices on evolving cost of living conditions and inflation
expectations.
 The Governor of RBI further shared that the committee expressed concern about the implications for the inflation outlook of
possible fiscal slippage and global financial instability heightening asset price volatility. However, the MPC also said it expected
the usual seasonal moderation in the prices of vegetables and fruits and the lowering of tax rates by the GST Council to mitigate
some of these pressures.
 The decision of the MPC is consistent with a neutral stance of monetary policy in consonance with the objective of achieving
the medium-term target for consumer price index (CPI) inflation of 4 per cent within a band of +/- 2 per cent, while supporting
growth.
 Growth: The Growth forecast has been cut to 6.7 percent from 7.3 percent for FY 2018.
 Inflation Projection: The RBI forecasts projects inflation at 4.2-4.6 percent in the second half. As per RBI, after a record low in June
2017, inflation is trending up and estimated the headline number to touch 4.6% by the March quarter.
MONETARY AND LIQUIDITY MEASURES:
On the basis of an assessment of the current and evolving macroeconomic situation, RBI has announced the following:
Ä REPO RATE: The policy Repo rate under the Liquidity Adjustment Facility (LAF) reduced by 25 basis points from 6.25 per cent to
nd
6.0 per cent w.e.f. 2 August 2017. The policy rate corridor continues to be +/- 25 bps.
˜ REVERSE REPO RATE: The Reverse repo rate determined with a spread of 25 bps below the repo rate, stands adjusted to 5.75
nd
per cent w.e.f. 2 August 2017.
˜ MARGINAL STANDING FACILITY (MSF): The MSF rate (an emergency funding window) determined with a spread of 25 bps
above the repo rate, stands adjusted to 6.25% w.e.f. 2nd August 2017.
˜ BANK RATE: The Bank Rate stands adjusted to 6.25 per cent. The MSF rate and the Bank Rate are recalibrated to 25 basis above
nd
the repo rate w.e.f. 2 August 2017.
Ä CASH RESERVE RATIO (CRR): CRR of scheduled banks unchanged at 4% of their NDTL. Effective from the fortnight beginning
April 16, 2016, the minimum daily maintenance of the CRR of 90% remains unchanged.
ÄSTATUTORY LIQUIDITY RATIO (SLR): The Reserve Bank in its fourth Bi-monthly policy has reduced the statutory liquidity ratio
(SLR) by 50 basis to 19.50 per cent of banks’ net demand and time liabilities (NDTL) from the fortnight commencing October 14,
2017. The ceiling on SLR securities under ‘Held to Maturity’ (HTM) reduced from 20.25 per cent to 19.50 per cent of banks’ NDTL
in a phased manner i.e. 20% by December 31, 2017 and 19.50 by March 31, 2018.
ÄTERM REPOS: To continue to provide liquidity under overnight repos at 0.25% of bank-wise NDTL and liquidity under 7-day
and 14-day term repos of up to 0.75% of NDTL of the banking system through auctions. Further, RBI has decided to continue
with daily one-day term repos and reverse repos to smooth liquidity.
 ‘BANKING OUTLETS’: The Reserve Bank on May 18, 2017 issued final guidelines on ‘Banking Outlets’.
a) A ‘Banking Outlet’ for a Domestic Scheduled Commercial Bank (DSCB), a Small Finance Bank (SFB) and a Payment Bank (PB) is
a fixed point service delivery unit, manned by either bank’s staff or its Business Correspondent where services of acceptance of
deposits, encashment of cheques / cash withdrawal or lending of money are provided for a minimum of 4 hours per day for at
least five days a week.
b) The bank should have a regular off-site and on-site monitoring of the ‘Banking Outlet’ to ensure proper supervision,
‘uninterrupted service’ except temporary interruptions due to telecom connectivity, etc. and timely addressing of customer
grievances.
c) A banking outlet which does not provide delivery of service for a minimum of 4 hours per day and for at least 5 days a week
will be considered a ‘Part-time Banking Outlet’.
 TRI-PARTY REPOS: To promote the development of the financial system of the country, the Reserve Bank, on August 10,
2017, issued the Tri-Party Repo (Reserve Bank) Directions, 2017. Tri-party repo is a type of repo contract where a third entity
(apart from the borrower and lender), called a Tri-Party Agent, acts as an intermediary between the two parties to the repo to
facilitate services like collateral selection, payment & settlement, custody & management during the life of the transaction.
 Maintenance of SLR
 RBI decided on Oct 04, 2017, to reduce the SLR requirement of banks from 20% of their Net Demand and Time Liabilities
(NDTL) to 19.5% from the fortnight commencing October 14, 2017. Currently, the banks are permitted to exceed the limit of 25
per cent of the total investments under HTM category, provided the excess comprises of SLR securities and total SLR securities
held under HTM category are not more than 20.5 per cent of NDTL. In order to align this ceiling on the SLR holdings under HTM
category with the mandatory SLR, RBI decided to reduce the ceiling from 20.5 per cent to 19.5 per cent in a phased manner, i.e.
20 per cent by December 31, 2017 and 19.5 per cent by March 31, 2018.
 As per extant policy, banks may shift investments to/from HTM with the approval of the Board of Directors once a year, and
such shifting will normally be allowed at the beginning of the accounting year. In order to enable banks to shift their excess SLR
securities from the HTM category to AFS/HFT to comply with instructions as indicated above, RBI decided to allow such shifting of
the excess securities and direct sale from HTM category. This would be in addition to the shifting permitted at the beginning of
the accounting year, i.e., in the month of April. Such transfer to AFS/HFT category as well as sale of securities from HTM category,
to the extent required to reduce the SLR securities in HTM category in accordance with the regulatory instructions, would be
excluded from the 5 per cent cap prescribed for value of sales and transfers of securities to/from HTM category under paragraph
2.3 (ii) of the Master Circular on Prudential Norms for Classification, Valuation and Operation of Investment Portfolio by Banks.
Ä BANKS CAN INVEST IN REITs: The RBI has allowed banks to participate in Real Estate Investment Trusts (REITs) and
Infrastructure Investment Trusts (InvITs) within the overall ceiling of 20 per cent of their net worth permitted for direct
investments in shares, convertible bonds / debentures, units of equity-oriented mutual funds and exposures to Venture Capital
Funds (VCFs) [both registered and unregistered], subject to the following conditions:
a) Banks should put in place a Board approved policy on exposures to REITs / InvITs which lays down an internal limit on such
investments within the overall exposure limits in respect of the real estate sector and infrastructure sector;
b) Banks shall not invest more than 10 per cent of the unit capital of an REIT/ InvIT and Banks should ensure adherence to the
prudential guidelines issued by RBI.
 MERGER OF ASSOCIATE BANKS: Bharatiya Mahila Bank Limited and all branches of Associate Banks of the State Bank of
India, namely, State Bank of Bikaner and Jaipur, State Bank of Hyderabad, State Bank of Mysore, State Bank of Patiala and State
Bank of Travancore started functioning as branches of SBI from April 1, 2017.
 UNIVERSAL BANKS: The Reserve Bank on June 30, 2017, released the names of applicants under the Guidelines for ‘on tap’ in
the Private Sector.
Some of the key aspects of the guidelines include:
(i) Resident individuals and professionals having 10 years of experience in banking and finance at a senior level are also eligible
to promote universal banks;
(ii) Large industrial houses are excluded as eligible entities but are permitted to invest in the banks up to 10 per cent;
(iii) Non-Operative Financial Holding Company (NOFHC) has been made non-mandatory in case of promoters being individuals
or standalone promoting/converting entities who/which do not have other group entities;
(iv) Not less than 51 per cent of the total paid-up equity capital of the NOFHC shall be owned by the promoter/promoter group,
instead being wholly owned by the promoter group;
(v) Existing specialised activities have been permitted to be continued from a separate entity proposed to be held under the
NOFHC subject to prior approval from the Reserve Bank and subject to it being ensured that similar activities are not
conducted through the bank as well.
(I) Eligible Promoters:
i) Individuals/professionals who are ‘residents’ and have 10 years of experience in banking and finance at a senior level.
ii) Entities/groups in the private sector that are ‘owned and controlled by residents’ and have a successful track record for at
least 10 years, provided that if such entity/group has total assets of Rs. 50 billion or more, the non-financial business of the group
does not account for 40 per cent or more in terms of total assets / in terms of gross income.
iii) Existing non-banking financial companies (NBFCs) that are ‘controlled by residents’ and have a successful track record for at
least 10 years. Any NBFC which is a part of the group that has total assets of Rs. 50 billion or more and that the non-financial
business of the group accounts for 40 per cent or more in terms of total assets/in terms of gross income, is not eligible.
(II) ‘Fit and Proper’ criteria: Promoter / promoting entity/promoter group should have a past record of sound financials,
credentials, integrity and have a minimum 10 years of successful track record.
(III) Minimum Capital Requirement: The initial minimum paid-up voting equity capital for a bank shall be Rs. five billion.
Thereafter, the bank shall have a minimum net worth of Rs. five billion at all times. The promoter/s and the promoter group /
NOFHC, as the case may be, shall hold a minimum of 40 per cent of the paid-up voting equity capital of the bank which shall be
locked-in for a period of five years from the date of commencement of business of the bank. The promoter group shareholding
shall be brought down to 15% within a period of 15 years from the date of commencement of business of the bank.
(IV) Foreign shareholding in the bank: The foreign shareholding in the bank would be as per the existing foreign direct
investment (FDI) policy. At present, the aggregate foreign investment limit is 74 per cent.
 WHOLESALE AND LONG TERM FINANCE BANKS:
 The basic objectives of setting up Wholesale and Long-Term Finance (WLTF) banks will be to focus primarily on lending to
infrastructure sector and small, medium & corporate businesses. They will also mobilize liquidity for banks and financial
institutions directly originating priority sector assets, through securitization of such assets and actively dealing in them as
market makers.
 They may also act as market-makers in securities such as corporate bonds, credit derivatives, warehouse receipts, and take-out
financing etc. These banks will provide refinance to lending institutions and shall be present in capital markets in the form of
aggregators.
 Wholesale and Long Term Finance (WLTF) banks may also offer services related to equity / debt investments, and forex / trade
finance to their clients. These services, although similar in nature to the services offered by financial institutions traditionally
known as ‘Investment Banks’, would be ancillary to the primary activities of WLTF banks, which is deposits / loan products for
wholesale clients and financing of infrastructure sector and core industries. Primary sources of funds for WLTF banks could be a
combination of term deposits, debt / equity capital raised from primary market issues or private placement and term borrowings
from banks and other financial institutions.
 Primary role of the Wholesale Banks is lending and not the provision of retail deposit services, they may be permitted to accept
deposits only above a large threshold amount. Therefore, they may have negligible retail segment exposure on their balance
sheet.
 Minimum Capital Requirement:
WLTF banks are expected to take on large exposure to industrial, commercial and infrastructure sector. Their risk perception
may be thought of as higher than that of universal banks. Therefore, they have to heavily invest in information technology and
skill building to mitigate the risks. Accordingly, a higher level of initial minimum paid-up equity capital of Rs.1,000 crore or
more can be considered for these banks.
 Eligible Promoters:
 The eligible promoter(s) for setting up universal banks are already specified in the Guidelines for ‘on-tap’ Licensing of Universal
Banks. The same may be considered applicable in case of WLTF banks.
 The bank would be on-tap and the eligible promoters could be anyone who satisfies the fit-and-proper guidelines on floating a
regular commercial bank, which means industrial groups and corporate houses will not be eligible to float these banks and
cannot take more than 10 per cent stake in these banks.
 Individuals with 10 years of experience in banking and finance at a senior level with a successful track record can also apply for
the licence along with business groups which have total assets of at least Rs.5,000 crore and which do not own more than 40%
of their total income from non-financial sources.
 A M E N D M E N T T O A C U R R E N T L A W O N DISHONOUR OF CHEQUE:
 The Cabinet has approved an amendment to a current law to allow for payment of an interim compensation in cheque
dishonour cases with a view not to allow unscrupulous elements holding payments, pending long trial. The amendment is likely
to be introduced in the ongoing Winter Session of Parliament.
 The amendment has been proposed to help trade and commerce, particularly the MSME sector, and in order to increase the
credibility of the cheque as a financial instrument.
 An amendment to the Negotiable Instrument Act will allow a court to order for payment of an interim compensation to those
whose cheques have bounced due to dishonouring parties, a move aimed at promoting a less cash economy.
 With this amendment, the court can order interim compensation to the payee of a cheque, a part of the cheque amount at the
trial stage. If the drawer is acquitted, the court may direct the payee to repay the amount paid as interim compensation with
interest.
 BANKS LOST RS. 16,789 CR ON ACCOUNT OF FRAUDS:
 The Reserve Bank has informed that as per the fraud monitoring reports submitted by the scheduled commercial banks and
select financial institutions, the amount lost on account of frauds during 2016-17 was Rs 16,789 crore.
 An inter-disciplinary standing committee on cyber security has been constituted by the RBI comprising academia, information
security audit, forensic and cybersecurity experts. The committee reviews threats inherent in the existing or emerging
technology, and suggests appropriate policy interventions. Incidents of bank robbery, theft, dacoity and burglary were
reported from different parts of the country during 2016-17. The amount involved in such incidents totalled about Rs 65.3 crore.
Further, 393 such cases involving Rs 18.48 crore have were reported in the first half of the current fiscal.
 NEW SERIES OF SOVEREIGN GOLD BONDS (SGBS): The Union government has fixed Rs.2,890 per gram as the price of new
series of sovereign gold bonds (SGBs). The government has decided to offer a discount of Rs.50 per gram to investors applying
online and making payments digitally. Earlier, Government had floated Series III of Sovereign Gold Bonds 2017-18, for the period
from October 09, 2017 to December 27, 2017. Under the scheme, the bonds are denominated in units of one gram of gold and
multiples thereof.
 ANNUAL INFORMATION RETURN:
The Reserve Bank of India has conveyed to all banks that Income Tax Department has brought about the under mentioned
changes in the Annual Information Return (AIR):
 Name of the AIR has been changed as Statement of Financial Transaction.
 Limit of amount has been changed from Rs.5 lakh or more to Rs.10 lakh or more in a Financial Year.
Date of filing has been changed from August 31 of the immediately following Financial Year to May 31.
The Reserve Bank on May 30, 2017 has advised Agency banks/Stock Holding Corporation of India Ltd. (SHCIL) that henceforth the
Annual Information Returns (AIR, now changed to Statement of Financial Transactions (SFT) is to be furnished only to Public Debt
Offices of the respective jurisdiction. They need not submit this information to Income Tax Authorities separately.
 GU I D EL IN E S F OR S EN I O R CI T IZ EN S AN D DIFFERENTLY ABLED PERSONS:
The Reserve Bank on November 9, 2017 advised banks to put in place appropriate mechanism with specific provisions for meeting
the needs of senior citizens & differently abled persons.
HIGHLIGHTS:
a)Dedicated Counters/Preference to Senior Citizens, Differently Abled Persons;
b)Ease of submitting Life Certificate;
c)Cheque Book Facility: Provide minimum 25 cheque leaves every year, if requested, in SB account, free of charge;
d) Automatic Conversion of Status of Accounts into a ‘Senior Citizen Account’ based on the date of birth available in bank’s
records.
e)Additional Facilities to Visually Impaired Customers: Banks advised that the facilities provided to sick / old / incapacitated
persons regarding operations of accounts through identification of thumb/toe impression / mark by two independent
witnesses and authorising a person who would withdraw the amount on behalf of such customers shall also be extended to
the visually impaired customers.
f) Ease of Filing Form 15G/H: To provide senior citizens and differently abled persons Form 15G/H once in a year (preferably in
April).
g)Door Step Banking for senior citizens of more than 70 years of age and differently abled or infirm persons (having medically
certified chronic illness or disability) including those who are visually impaired.
Report on Trend and Progress of Banking in India 2016-17
On Dec 21, 2017, RBI released the above statutory Report which presents performance and salient policy measures for banking
sector during 2016-17. It also provides an analysis of the co-op banks and NBFCs. The highlights of the Report are set out below:
 The financial performance of banks, especially public sector banks (PSBs), was weighed down by high provisioning for non-
performing assets. As a result, PSBs reported net losses for the 2nd year in a row. Private sector banks posted a muted increase in
profits during the year.
 RBI fine-tuned its regulatory and supervisory policies to ensure a sound, resilient and inclusive banking system. The provisions of the
revised prompt corrective action (PCA) framework were implemented w.e.f. April 1, 2017.
 A watershed development in India in 2016-17 has been the enactment of the Insolvency and Bankruptcy Code (IBC) in May 2016
and amendment to Banking Regulation Act, 1949 which empowered RBI to issue directions to any banking company or banking
companies to initiate insolvency resolution in respect of a default under the provisions of the IBC.
 Government announced bank recapitalisation plan in October 2017 to reinvigorate PSBs struggling with high levels of stressed
advances.
 Several policy measures were initiated in the payment and settlement systems to ensure robust and customer friendly payment
systems.
 The operationalisation of small finance banks and payments banks may provide further impetus to the financial inclusion agenda.
 Co-operative institutions portrayed a sanguine picture. Following on-going consolidation efforts, urban co-operative banks (UCBs)
exhibited expansion in balance sheet size and recorded improved profitability in 2016-17. There was a turnaround in the
performance of the apex-level long-term rural credit cooperatives, while the short-term rural credit cooperatives comprising state
co-operative banks and district central co-operative banks have exhibited improved performance over time. Primary agricultural
credit societies, the grass-root level tier of the short-term co-operative credit structure continued to incur losses.
 The consolidated balance sheet of non-banking financial companies (NBFCs) expanded during 2016-17 due to healthy growth of
loans and advances. However, their profitability declined due to deterioration in asset quality. The consolidated balance sheet of all-
India financial institutions (AIFIs) increased in 2016-17 due to loans and advances, and their operating profit ratio improved with a
moderation in the growth of interest outgo.
 The Report flags the main challenges that will likely shape the outlook for the financial sector in India, which include resolution
of stressed assets; strengthening of bank balance sheets for reinvigorating credit growth; developing robust accounting standards
for banks with the aim of closing gaps in accounting practices; promoting differentiated banking and exploring scope for its
expansion to wholesale and long-term financing; promoting digitisation and managing technology-enabled financial services; and
managing cyber-security risks with the aim of strengthening resilience of the financial system.
Indian Banking Sector at a Glance
Amoun % change
Parameter Mar 16 Mar 17t Mar 16 Mar 17
Deposits (Rs. in billion) 100927 111139 9.1 7.8
Advances (Rs. in billion) 78965 81162 6.9 2.8
Total liabilities / assets ( 131293 141586 9.1 7.8
billion)
Net profits (Rs. in billion) 341 439 -61.7 28.6
Return on asssets (%) 0.40 0.35 -
Return on equity (%) 3.58 4.16 -
Net interest margin (%) 2.6 2.5 -
Capital to risk weighted asset 13.3 13.6 - -
(%)
Tier1 / Total capital (%) 81.2 82.1 -
CRAR (Tier1) (%) 10.8 11.2 -
Gross NPAs (Rs. in billion) 6119 7918 89.3 39.4
Net NPAs (Rs. in billion) 3498 4331 98.9 23.8
Gross NPA ratio 7.5 9.3 -
Net NPA ratio 4.4 5.3 -
Provision coverage ratio 41.9 43.5 -
Branches Rural S.U Urban Metro Total ATM
Public Sector Banks 29033 25647 18875 91445 148555
Private Sector Bk 17890
4822 7803 6878 24661 58833
5158
Reporting of Transactions by agency banks to RBI
RBI observed that some agency banks are reporting government transactions after considerable delay and along with the current
transactions to RBI, without taking necessary authorisation from the concerned government departments.
As per the extant instructions, State Government transactions (electronic as well as in physical mode) of previous month
reported after 8th of the succeeding month and those pertaining to earlier months should be reported to RBI through a separate
statement for accounting, after being confirmed by the competent authorities of concerned state government.
RBI decided (Nov 30, 2017) that, for Central Government transactions (electronic as well as in physical mode), if the transactions
or any adjustments thereof are reported after a gap of 90 days from the date of transaction, agency banks have to obtain prior
approval from concerned ministry/department and submit the same to RBI separately at the time of reporting such transactions
for settlement.
Submission of Financial Information to Information Utilities
According to Section 215 of Insolvency and Bankruptcy Code (IBC), 2016, a financial creditor shall submit financial information
and information relating to assets in relation to which any security interest has been created, to an information utility (IU) in
such form and manner as may be specified by regulations. Chapter V of the Insolvency and Bankruptcy Board of India
(Information Utilities) Regulations, 2017, which has come into force with effect from April 1, 2017, has specified the form and
manner in which financial creditors are to submit this information to IUs. Further, as per Section 238 of the IBC, 2016 the
provisions of the Code shall have effect, notwithstanding anything inconsistent therewith contained in any other law for the
time being in force or any instrument having effect by virtue of any such law.
The Insolvency and Bankruptcy Board of India (IBBI) has registered National E-Governance Services Limited (NeSL) as the first IU
under the IBBI (IUs) Regulations, 2017 on September 25, 2017. RBI advised (Dec 19, 2017) all financial creditors regulated by RBI
to adhere to the relevant provisions of IBC, 2016 and IBBI (IUs) Regulations, 2017 and immediately put in place appropriate
systems and procedures to ensure compliance to the provisions of the Code and Regulations.
Banks placed under PCA till 31st Dec 2017:
Bank of India Dena Bank
United Bank of India Bank of Maharashtra
Indian Overseas Bank IDBI Bank
Corporation Bank UCO Bank
Central Bank of India Oriental Bank of Commerce
Audio visual content and provision of handheld projectors: In order to improve the effectiveness of the financial literacy camps,
RBI decided to encourage FLCs and rural branches of banks to use hand held projectors to show Audio-visuals and posters on
financial awareness messages. Funding for handheld projectors and speakers would be provided from FIF to the extent of 50% of
the cost incurred on purchase of hand held projector and portable speaker (both put together) subject to a maximum of Rs.5000
per rural branch / FLC on a reimbursement basis.
Interest rates for Small Savings Schemes
RBI informed (Oct 12, 2017) banks that the Government of India, vide their Office Memorandum (OM) dated September 29, 2017
has stated that the interest rates on small savings schemes for the third quarter of financial year 2017-18 starting 1st October,
nd
2017 shall remain unchanged from those notified for the second quarter of FY 2017-18 The rates notified for 2 quarter are
reproduced as under:
The interest rates and compounding / payment built-in in the schemes, shall be as under: (rates given in %)
Instrument (wef) 1.4.07 1.7.07 Compouding
Savings Deposit 4.0 4.0 Annually
1 Year Time Deposit 6.9 6.8 Quarterly
5 Year Recrng Deposit 7.2 7.1 Quarterly
Senior Citizen Savings Scheme 8.4 8.3 Quarterly
5 Year Monthly Income A/c 7.6 7.5 Monthly
5 Year NSC 7.9 7.8 Annually
Public PPF 7.9 7.8 Annually
Kisan Vikas Patra 7.6 7.5 (maturity 115 M)
Sukanya Samriddhi A/c 8.4 8.3 Annually
Issue of Convertible Notes by Startup Companies
RBI made the following amendments (Jan 10, 2017) in the Foreign Exchange Management (Transfer or issue of Security by a
Person Resident outside India) Regulations, 2000 to make provision for issue of convertible notes by Startup Companies:
Convertible note means an instrument issued by a startup company evidencing receipt of money initially as debt, which is repayable at
the option of the holder, or which is convertible into such number of equity shares of such startup company, within a period not
exceeding five years from the date of issue of the convertible note, upon occurrence of specified events as per the other terms and
conditions agreed to and indicated in the instrument;
Issue of Convertible Notes by startup companies:
(1) A person resident outside India (other than an individual who is citizen of Pakistan or Bangladesh or an entity which is registered /
incorporated in Pakistan or Bangladesh), may purchase convertible notes issued by an Indian startup company for an amount of Rs.25 lac
(twenty five lakh rupees) or more in a single tranche.
A startup company engaged in a sector where foreign investment requires Government approval may issue convertible notes to a
non-resident only with approval of the Government.
(3) A startup company issuing convertible notes to a person resident outside India shall receive the amount of consideration by inward
remittance through banking channels or by debit to the NRE / FCNR (B) / Escrow account maintained by the person concerned in
accordance with the Foreign Exchange Management (Deposit) Regulations, 2016, as amended from time to time.
Provided that an escrow account for the above purpose shall be closed immediately after the requirements are completed or within
a period of six months, which ever is earlier. However, in no case continuance of such escrow account shall be permitted beyond a
period of six months.
(4) NRIs may acquire convertible notes on non-repatriation basis in accordance with Schedule 4 of the Principal Regulations.
(5) A person resident outside India may acquire or transfer, by way of sale, convertible notes, from or to, a person resident in or outside
India, provided the transfer takes place in accordance with the pricing guidelines as prescribed by RBI. Prior approval from the
Government shall be obtained for such transfers in case the startup company is engaged in a sector which requires Government
approval.6)The startup company issuing convertible notes shall be required to furnish reports as prescribed by Reserve Bank.
Part – b ( Jan-dec 2016)
 APPOINTMENT OF A GUARDIAN:
* The RBI has clarified that banks need to necessarily seek appointment of a guardian only in such cases where they are convinced
on their own or based on documentary evidence available, that the concerned person is mentally ill and is not able to enter into a
valid and legally binding contract.
* Further, the RBI has clarified that banks need not mandatorily insist on appointment of a guardian as a matter of routine from
every person “who is in need of treatment by reason of any mental disorder”.
 DEFINITION OF "CURRENCY", 2015: The RBI has advised that Debit cards, ATM cards or any other instrument which can be
used to create a financial liability may be defined as currency. The new regulations have been notified and shall come into force
with effect from Dec. 29, 2015.
 POSTAL ORDERS / MONEY ORDERS): The RBI has advised that general permission has been given to any person to buy foreign
exchange from any post office in India in form of postal order or money order.
II) FOREIGN CURRENCY TRANSLATION RESERVE (FCTR): Banks may, at their discretion, reckon foreign currency translation
reserve arising due to translation of financial statements of their foreign operations in
terms of Accounting Standard (AS) 11 as CET1 capital at a discount of 25% subject to meeting the following conditions:
a) The FCTR are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;
b) The external auditors of the bank have not expressed a qualified opinion on the FCTR.
III) TREATMENT OF DEFERRED TAX ASSETS (DTAS):
a) Deferred tax assets (DTAs) associated with accumulated losses and other such assets should be deducted in full from CET1
capital.
b) DTAs which relate to timing differences (other than those related to accumulated losses) may, instead of full deduction from
CET1 capital, be recognised in the CET1 capital up to 10% of a bank’s CET1 capital, at the discretion of banks.
c) Further, the limited recognition of DTAs as above along with limited recognition of significant investments in the common
shares of unconsolidated financial (i.e. banking, financial and insurance) entities taken together must not exceed 15% of the
CET1 capital, calculated after all regulatory adjustments. However, banks shall ensure that the CET1 capital arrived at after
application of 15% limit should in no case result in recognising any item more than the 10% limit applicable individually.
 CURRENCY FUTURES MARKET: The RBI has decided to permit stand-alone Primary Dealers (PDs) to deal in currency futures
contracts traded on recognized exchanges subject to the following conditions:
a) Exposure to currency futures will be treated as a non- core activity for PDs and only PDs having a minimum Net Owned Fund of
Rs. 250 crore or any amount as prescribed for undertaking diversified activity will be allowed to participate in currency futures.
b) As prescribed in the existing guidelines on capital adequacy standards, the capital charge for market risk for the non-core
activities (including currency futures) which are expected to consume capital should not be more than 20 per cent of the NOF
as per last audited balance sheet.
 EXCESS PAYMENTS MADE TO PENSIONERS:
a) As soon as the excess/wrong payment made to a pensioner comes to the notice of the paying branch, the branch should adjust
the same against the amount standing to the credit of the pensioner’s account to the extent possible including lumpsum
arrears payment.
b) If the entire amount of over payment cannot be adjusted from the account, pensioner may be asked to pay forthwith balance
amount of over payment.
c) In case the pensioner expresses his inability to pay the amount, the same may be adjusted from the future pension payments
to be made to the pensioners. For recovering the over-payment made to pensioner from his future pension payment in
instalments 1/3rd of net (pension + relief) payable each month may be recovered unless the pensioner concerned gives
consent in writing to pay a higher installment amount.
d) If the over payment cannot be recovered from the pensioner due to his death or discontinuance of pension then action has to
be taken as per the letter of undertaking given by the pensioner under the scheme.
e) The pensioner may also be advised about the details of overpayment/wrong payment and mode of its recovery.
 INVESTMENT ADVISORY SERVICES:
The Reserve Bank has advised that banks desirous of offering Investment Advisory Services (IAS) may do so either through a
separate subsidiary set up for the purpose or one of the existing subsidiaries after ensuring that there is an arm’s length
relationship between the bank and the subsidiary.
 INDIAN ACCOUNTING STANDARDS (IND AS):
* The Ministry of Corporate Affairs (MCA), has notified the Companies (Indian Accounting Standards) Rules, 2015. The MCA has
outlined the roadmap for implementation of International Financial Reporting Standards (IFRS) converged Indian Accounting
Standards for banks, non-banking financial co’s, select All India Term Lending and Refinancing Institutions and insurance entities.
Currently, 39 new Ind ASs have been notified.
* The basic objective of Accounting Standards is to remove variations in the treatment of several accounting aspects and to bring
about standardization in presentation. The Accounting Standards intend to harmonize the diverse accounting policies followed in
the preparation and presentation of financial statements by different reporting enterprises so as to facilitate intra-firm and inter-
firm comparison.
* Banks shall comply with the Indian Accounting Standards (Ind AS) for financial statements for accounting periods beginning
from April 1, 2018 onwards, with comparatives for the periods ending March 31, 2018 or thereafter. Ind AS shall be applicable to
both standalone financial statements and consolidated financial statements. “Comparatives” shall mean comparative figures for
the preceding accounting period.
* Banks shall apply Ind AS only as per the above timelines and shall not be permitted to adopt Ind AS earlier.
* The Reserve Bank has advised all scheduled commercial banks to submit Proforma Indian Accounting Standards (Ind AS)
Financial Statements, for the half year ending Sept. 30, 2016 latest by Nov. 30, 2016 to the RBI.
 SPECIFIED BANK NOTES (SBNs):
As per Govt. notification Rs.500 and Rs.1000 denominations of Bank Notes of the existing series issued by the Reserve Bank of
India (Specified Bank Notes) ceased to be legal tender with effect from November 9, 2016. A new series of Bank Notes called
Mahatma Gandhi (New) Series having different size and design, highlighting the cultural heritage and scientific achievements of
the country, were issued on November 10, 2016.
 INTEREST RATE FUTURES: The Reserve Bank has introduced Interest Rate Futures based on any rupee denominated money
market interest rate or money market instrument on Securities and Exchange Board of India (SEBI) authorised stock
exchanges.
 PAYMENT BANKS:
The “Committee on Comprehensive Financial Services for Small Businesses and Low Income Households” was set up by the RBI
under the chairmanship of Nachiket Mor, which recommended the setting up of Payment Banks.
The objectives of setting up of Payments Banks is to further financial inclusion by providing Small savings accounts, and
payments / remittance services to migrant labour workforce, low income households, small businesses, other unorganised
sector entities and other users, by enabling high volume-low value transactions in deposits and payments / remittance services
in a secured technology-driven environment.
SCOPE OF ACTIVITIES:
A. Acceptance of demand deposits. Payments Bank will initially be restricted to holding a maximum balance of Rs.1,00,000 per
individual customer. B.Issuance of ATM/debit cards. C. Payments banks cannot issue credit cards. D. Payments and
remittance services through various channels. E. Banking Correspondents of another bank, subject to the RBI guidelines on
BCs. F. Distribution of non-risk sharing simple financial products like mutual fund units and insurance products, etc.
DEPLOYMENT OF FUNDS:
* The Payments Bank cannot undertake lending activities.
* Apart from amounts maintained as Cash Reserve Ratio (CRR) with the Reserve Bank on its outside demand and time liabilities, it
will be required to invest minimum 75 per cent of its ‘demand deposit balances’ in Statutory
Liquidity Ratio (SLR) eligible Government securities / treasury bills with maturity up to one year, and
* Hold maximum 25% in Current and Time/Fixed deposits with other scheduled commercial banks for operational purposes &
liquidity management. CAPITAL REQUIREMENT:
* The minimum paid-up equity capital for payments banks shall be Rs. 100 cr. * The Payments Bank should have a leverage ratio
of not less than 3 per cent, i.e., its outside liabilities should not exceed 33.33 times its net worth (paid-up capital and reserves).
PROMOTER'S CONTRIBUTION: The promoter's minimum initial contribution to the paid-up equity capital of such payments bank
shall at least be 40 per cent for the first five years from the commencement of its business.
PRUDENTIAL REGULATION: The prudential regulatory framework for payments banks (PBs) will largely be drawn from the Basel
standards. However, given the financial inclusion focus of these banks, it will be suitably calibrated.
CAPITAL ADEQUACY FRAMEWORK:
Minimum Capital Requirement 15%
Common Equity Tier 1 6%
Additional Tier I 1.5%
Minimum Tier I capital 7.5%
Tier 2 capital 7.5%
Capital Conservation Buffer Not Applicable
Counter-cyclical capital buffer Not applicable
CET1 at 6% up to March 31, 2019, and 7%
Pre-specified Trigger for conversion of AT1 thereafter
 ‘ON TAP’ LICENSING OF UNIVERSAL BANKS IN THE PRIVATE SECTOR’: The Reserve Bank of India has released final guidelines
for ‘On Tap’ Licensing of Universal Banks in the Private Sector’ but excluded large industrial houses from entering the sector.
KEY FEATURES OF THE FINAL GUIDELINES: I) Eligible Promoters:
a) Individuals / professionals who are ‘residents’ and have 10 years of experience in banking and finance at a senior level.
b) Entities/groups in the private sector that are ‘owned and controlled by residents’ and have a successful track record for at
least 10 years, provided that if such entity/group has total assets of Rs.50 billion or more, the nonfinancial business of the group
does not account for 40 per cent or more in terms of total assets/in terms of gross income.
c) Existing Non-Banking Financial Companies (NBFCs) that are ‘controlled by residents’ and have a successful track record for
at least 10 years. For the sake of clarity, RBI has clarified that any NBFC, which is a part of the group that has total assets of
Rs.50 billion or more and that the non-financial business of the group accounts for 40 per cent or more in terms of total
assets/in terms of gross income, is not eligible.
II) ‘Fit and Proper’ Criteria: Promoter/ promoting entity/promoter group should have a past record of sound financials,
credentials, integrity and have a minimum 10 years of successful track record.
III) Corporate Structure: The requirement of Non-Operative Financial Holding Company (NOFHC) is not mandatory for individual
promoters or standalone promoting/converting entities who do not have other group entities.
 Individual promoters/promoting entities/converting entities that have other group entities, shall set up the bank only through
an NOFHC. Not less than 51% of the total paid-up equity capital of the NOFHC shall be owned by the Promoter/Promoter Group.
 Specialised activities would be permitted to be conducted from a separate entity proposed to be held under the NOFHC
subject to prior approval from the Reserve Bank and subject to being ensured that similar activities are not conducted through
the bank. No shareholder, other than the promoters / promoter group, shall have significant influence and control in the NOFHC.
IV) Minimum Capital Requirement: The initial minimum paid-up voting equity capital for a bank shall be Rs. five billion.
Thereafter, the bank shall have a minimum net worth of Rs. five billion at all times.
 The promoters and the promoter group / NOFHC, as the case may be, shall hold a minimum of 40% of the paid-up voting equity
capital of the bank which shall be locked-in for a period of five years from the date of commencement of business of the bank.
The promoter group shareholding shall be brought down to 15% within a period of 15 years from the date of commencement of
business of the bank.
V) Foreign Shareholding in the Bank: The foreign shareholding in the bank would be as per the existing foreign direct
investment (FDI) policy subject to the minimum promoter shareholding requirement. At present, the aggregate foreign
investment limit is 74 per cent.
VI) Other Conditions:
a) The bank shall get its shares listed on the stock exchanges within six years of the commencement of business by the bank.
b) The bank shall open at least 25% of its branches in unbanked rural centres (population up to 9,999 as per the latest census).
c) The bank shall comply with the priority sector lending targets and sub-targets as applicable to the existing domestic SCBs.
d) The board of the bank should have a majority of independent directors.
 DISHONOUR OF CHEQUES: The Reserve Bank of India has decided to modify the procedure concerning the dishonour of
cheques. It has been decided to leave it to the discretion of the banks to determine their response to dishonour of cheques of the
account holders. Banks should put in place an appropriate policy approved by the Board or its Committee taking into
consideration the need to prevent misuse of the cheque drawing facility and avoid penalising customers for unintended
dishonour of cheques. This has been done keeping in view the previous guidelines by the Reserve Bank wherein banks were
advised to introduce a condition for operation of accounts with cheque facility that in the event of dishonour of a cheque valuing
rupees one crore and above drawn on a particular account of the drawer on four occasions during the financial year for want of
sufficient funds in the account, no fresh cheque book would be issued. Also, the bank may consider closing current account at its
discretion.
 MONETARY POLICY COMMITTEE (MPC): * The Reserve Bank of India Act, 1934 (RBI Act) was amended on September 29, 2016
by the Finance Act, 2016, to provide for a statutory and institutionalised framework for a Monetary Policy Committee (MPC), for
maintaining price stability, while keeping in mind the objective of growth. The Monetary Policy Committee has been entrusted
with the task of fixing the benchmark policy rate (repo rate) required to contain inflation within the specified target level. A
Committee-based approach for determining the Monetary Policy will add lot of value and transparency to monetary policy
decisions. The meetings of the Monetary Policy Committee shall be held at least four times a year and it shall publish its decisions
after each such meeting. * As per the provisions of the RBI Act, out of the six Members of Monetary Policy Committee, three
Members are from the Reserve Bank and the other three Members of MPC are appointed by the Central Government.
 AMOUNT SHOULD BE WRITTEN AS LAKH:
As per RBI guidelines, while writing cheques, amount should be written as lakh and not lac.
 SAKA SAMVAT AS NATIONAL CALENDAR: Govt. has accepted Saka Samvat as National Calendar with effect from March 22,
1957 and all Govt. statutory orders, notifications, Acts of Parliament, etc. bear both the dates, i.e., Saka Samvat as well as
Gregorian Calendar. Therefore, a cheque written in Hindi and bearing a date in Hindi is a valid instrument.
 CENTRAL FRAUD REGISTRY: The RBI has operationalised a Central Fraud Registry (CFR) with effect from January 20, 2016.
Along with early detection mechanisms for frauds, a CFR is also proposed to be created simultaneously as a searchable centralised
database for use by banks’.
 REPORTING OF FRAUDS: * As per the revised guidelines, Frauds of Rs. 0.1 million and above but below Rs. 50 million will be
monitored by the respective RO of the RBI under whose jurisdiction the Head Office of the bank falls / Senior Supervisory
Manager of the bank. Frauds of Rs. 50 million and above will be monitored by CFMC, Bengaluru.
* Flash reports are to be sent in fraud cases of Rs. 50 million and above to the CGM-in-charge, Department of Banking
Supervision, Central Office with a copy to CFMC at Bengaluru as against the present limit of Rs.10 million and above.
 APPOINTMENT OF A GUARDIAN: * The RBI has clarified that banks need to necessarily seek appointment of a guardian only in
such cases where they are convinced on their own or based on documentary evidence available, that the concerned person is
mentally ill and is not able to enter into a valid and legally binding contract.
* Further, the RBI has clarified that banks need not mandatorily insist on appointment of a guardian as a matter of routine from
every person “who is in need of treatment by reason of any mental disorder”.
 DEFINITION OF "CURRENCY", 2015: The RBI has advised that Debit cards, ATM cards or any other instrument which can be
used to create a financial liability may be defined as currency. The new regulations have been notified and shall come into force
with effect from Dec. 29, 2015.
 POSTAL ORDERS / MONEY ORDERS): The RBI has advised that general permission has been given to any person to buy foreign
exchange from any post office in India in form of postal order or money order.
 BASEL III CAPITAL REGULATIONS – REVISION: RBI has decided to align, the current regulations on treatment of these balance
sheet items, for the purpose of regulatory capital, with the BCBS guidelines.
 RBI WITHDRAWS THE INCREMENTAL CRR: * On Nov. 26, 2016 the Reserve Bank had announced an incremental cash reserve
ratio (CRR) of 100 per cent of the increase in net demand and time liabilities (NDTL) of scheduled banks between Sept. 16, 2016
and Nov. 11, 2016 effective the fortnight beginning November 26, 2016. It was intended to absorb a part of the large increase
in liquidity in the system following the withdrawal of the legal tender status of Rs.500 and Rs.1,000 denomination bank notes.
It was also indicated that incremental CRR was purely a temporary measure and that it would be reviewed on Dec. 9, 2016 or
even earlier.
* With the enhancement in the ceiling for issue of securities under the Market Stabilisation Scheme (MSS) to Rs.6,000 billion,
RBI has decided to withdraw the incremental CRR effective the fortnight beginning Dec. 10, 2016. The liquidity released by the
discontinuation of the incremental CRR would be absorbed by a mix of MSS issuances and liquidity adjustment facility (LAF)
operations.
 CURRENCY FUTURES MARKET: The RBI has decided to permit stand-alone Primary Dealers (PDs) to deal in currency futures
contracts traded on recognized exchanges subject to the following conditions:
c) Exposure to currency futures will be treated as a non- core activity for PDs and only PDs having a minimum Net Owned Fund of
Rs. 250 crore or any amount as prescribed for undertaking diversified activity will be allowed to participate in currency futures.
d) As prescribed in the existing guidelines on capital adequacy standards, the capital charge for market risk for the non-core
 EXCESS PAYMENTS MADE TO PENSIONERS:
f) As soon as the excess/wrong payment made to a pensioner comes to the notice of the paying branch, the branch should adjust
the same against the amount standing to the credit of the pensioner’s account to the extent possible including lumpsum
arrears payment.
g) If the entire amount of over payment cannot be adjusted from the account, pensioner may be asked to pay forthwith balance
amount of over payment.
h) In case the pensioner expresses his inability to pay the amount, the same may be adjusted from the future pension payments
to be made to the pensioners. For recovering the over-payment made to pensioner from his future pension payment in
instalments 1/3rd of net (pension + relief) payable each month may be recovered unless the pensioner concerned gives
consent in writing to pay a higher installment amount.
i) If the over payment cannot be recovered from the pensioner due to his death or discontinuance of pension then action has to
be taken as per the letter of undertaking given by the pensioner under the scheme.
j) The pensioner may also be advised about the details of overpayment/wrong payment and mode of its recovery.
2. Loans & Advances

Introduction of Legal Entity Identifier for large corporate borrowers
The Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems
for better risk management post the Global Financial Crisis. LEI is a 20-digit unique code to identify parties to financial
transactions worldwide.
2. The LEI for the participants of the OTC derivatives market was implemented by RBI on 01.06.2017.
3. In its Oct 2017 monetary policy review it was indicated by RBI that LEI system for all borrowers of banks having total fund
based and non-fund based exposure of Rs.5 crore and above will be introduced in a phased manner.
4. Accordingly, RBI decided (02.11.2017) that the banks shall advise their existing large corporate borrowers having total
exposures of Rs.50 crore and above to obtain LEI as per the schedule given below.
5. Borrowers who do not obtain LEI as per the schedule are not to be granted renewal / enhancement of credit facilities. A
separate roadmap for borrowers having exposure between Rs. 5 crore and upto Rs. 50 crore would be issued in due course.
6. Banks should encourage large borrowers to obtain LEI for their parent entity as well as all subsidiaries and associates.
7. Entities can obtain LEI from any of the Local Operating Units (LOUs) accredited by the Global Legal Entity Identifier
Foundation (GLEIF) – the entity tasked to support the implementation and use of LEI. In India, LEI code may be obtained from
Legal Entity Identifier India Ltd (LEIIL), a subsidiary of the Clearing Corporation of India Limited (CCIL), which has been recognised
by the Reserve Bank as issuer of LEI under the Payment and Settlement Systems Act, 2007 and is accredited by the GLEIF as the
Local Operating Unit (LOU) in India for issuance and management of LEI.
8. After obtaining LEI code, banks shall also ensure that borrowers renew the codes as per GLEIF guidelines.
Schedule for implementation of LEI
Total Exposure to SCBs To be completed by
Rs. 1000 crore and above Mar 31, 2018
Between Rs. 500 crore and Rs.1000 crore Jun 30, 2018
Between Rs.100 crore and Rs.500 crore Mar 31, 2019
Between Rs.50 crore and Rs.100 crore Dec 31, 2019
 RRBs CAN GRANT LARGER GOLD LOANS:
The Reserve Bank on February 16, 2017 increased the quantum of loan that could be granted by Regional Rural Banks (RRBs)
under the scheme, from Rs.1 lakh to Rs.2 lakh subject to the following conditions:
a)The period of the loan shall not exceed 12 months from the date of sanction;
b)Interest will be charged to the account at monthly rests but will become due for payment along with principal only at the end of
12 months from the date of sanction;
c)Regional Rural Banks (RRBs) should maintain a Loan to Value (LTV) ratio of 75 per cent on the outstanding amount of loan
including the interest on an ongoing basis, failing which the loan will be treated as a Non Performing Asset (NPA).
d)The Reserve Bank also clarified that crop loans sanctioned against the collateral security of gold/gold ornaments shall continue
to be governed by the extant income recognition, asset classification and provisioning norms for such loans.
e)Earlier, Regional Rural Banks (RRBs) were permitted to grant gold loans up to Rs. 1 lakh with bullet repayment option.
 PUBLIC CREDIT REGISTRY (PCR) FOR INDIA:

The RBI has set up a High-level Task Force on a Public Credit Registry (PCR) for India under the Chairmanship of Sh. Y. M.
Deosthalee, to suggest a roadmap for developing a transparent, comprehensive and near-real-time PCR for India. The task force
will submit its report by April 2018.
a)The RBI has made a strong case for setting up a Public Credit Registry (PCR) in India to address the twin balance sheet problem
of the banking sector and the corporate sector.
b)After setting up the Central Repository of Information on Large Credits (CRILC), RBI now plans to create a Public Credit Registry
(PCR) which will capture the entire database of credit information that is accessible to all stakeholders.
c)While CRILC maintains database of loans of over Rs.5 crore, PCR is expected to be more broad-based in its scope and capture
credit data on all kinds of loans. A PCR will complement the private credit bureaus by certifying details of collateral.
Issue of comprehensive Credit Information Reports
As per extant RBI directions, Credit Information Companies (CICs) are to include information on all accounts, both current and past,
of a customer having multiple borrowings, in Credit Information Report (CIR).
RBI observed that some CICs are offering limited versions of CIRs to Credit Institutions (CIs) based on credit information available in
specific modules such as commercial data, consumer data or MFI data. Accordingly, CICs are charging differential rates for such
specific reports. As the limited versions of CIRs based on the credit information on a borrower available in a specific module capture
only the credit information available in the particular module, the lenders may remain unaware of the entire credit history of the
borrower, if any, available in other modules. This can adversely affect the quality of credit decisions of the CIs.
CICs have been directed by RBI (02.08.17) to ensure that the CIR in respect of a borrower, furnished to the CI, incorporates all the
credit information available in all modules, e.g. consumer, commercial and MFI, etc., in respect of the borrower.
Individual Housing Loans: Rationalisation of Risk-Weights and Loan to Value (LTV) Ratios
On Jun 07, 2017, as a countercyclical measure, the LTV ratios, risk weights for capital adequacy ratio and standard asset
provisioning rate for individual housing loans sanctioned on or after the date of this circular have been revised by RBI as under:
1) Up to Rs.30 lath : if LTV ratio is up to 80%, RW will be 35% and if LTV is more than 80% but upto 90%, RW will be 50%.
2) Above Rs.30 latch up to Rs.75 lac the LTV ratio can be max 80% and the RW will be 35%.
3) Above Rs.75 lac the LTV ratio can be max 75% and the RW will be 50%. For these loans in Standard category, provisions shall
be 0.25%
 PEER-TO-PEER LENDING (P2P): * P2P is a method of debt financing that enables individuals to borrow and lend money
without the use of an official financial institution as an intermediary. Peer-to-peer lending removes the middleman from the
process, but it also involves more time, effort and risk than the general brick-and-mortar lending scenarios.
* With a view to regulate the nascent peer-to-peer market in the country, the Reserve Bank of India came out with a consultation
paper that aims to classify P2P as an NBFC, with a minimum capital requirement of Rs 2 crore. RBI wants to create a platform that
will operate only as an intermediary and that no entity other than a company can undertake this activity.
* According to RBI, considering the present stage of development, the platform could be registered only as an intermediary,
which means the role of the platform would be limited to bringing the borrower and lender together without the lending and
borrowing getting reflected in the balance sheet.
Most peer-to-peer intermediaries provide the following services:
 Online investment platform to enable borrowers to attract lenders and investors to identify and purchase loans that meet their
investment criteria.
 Development of credit models for loan approvals and pricing.
 Verifying borrower identity, bank account, employment and income.
 Performing borrower credit checks and filtering out the unqualified borrowers.
 Processing payments from borrowers and forwarding those payments to the lenders who invested in the loan. Servicing loans,
providing customer service to borrowers and attempting to collect payments from borrowers who are delinquent or in
default. Legal compliance and reporting.
 Finding new lenders and borrowers (marketing).
 FREE ANNUAL CREDIT REPORT TO INDIVIDUALS:
The Reserve Bank has issued the directions to all Credit Information Companies (CICs) to provide access to FFCR in electronic
format upon request and after due authentication of the requester, to a free full credit report (FFCR) once in a calendar year
(January- December) to individuals whose credit history is available with the CIC, with effect from January 1, 2017. This report
must show the latest position of the credit institutions’ exposure to the individual as per records available with the CIC.
The FFCR shall be in electronic format. The contents of the FFCR shall be the same as appearing in the most detailed version of
the reports on the individual provided to credit institutions, including the credit score.
All CICs to put in place necessary systems to provide access to the above described FFCR once, at any time, during a year, upon
request, to individuals whose credit data they hold, from the year commencing January 1, 2017. The CICs shall notify on their
website the procedure for accessing the FFCR, and also have a Board approved policy on making available the FFCR.
 PHOTOGRAPH OF WILFUL DEFAULTERS:
Reserve Bank of India has advised all scheduled commercial banks and all India financial institutions that a lending institution
can consider publication of the photographs of only those borrowers, including proprietors/ partners /directors / guarantors of
borrower firms / companies, who have been declared as wilful defaulters. The lending institutions shall formulate a policy with
the approval of their Board of Directors which clearly sets out the criteria based on which the decision to publish the
photographs of a person will be taken by them so that the approach is neither discriminatory nor inconsistent.
PARTIAL CREDIT ENHANCEMENT (PCE): The Reserve Bank has permitted scheduled commercial banks to grant non - fund based
facilities including Partial Credit Enhancement (PCE) to those customers, who do not avail any fund based facility from any bank in
India.
 SGBs CAN BE ACCEPTED AS COLLATERAL: The RBI has advised that the Sovereign Gold Bonds (SGB) are government
securities. As the holder of an SGB can therefore create a pledge, hypothecation or lien against the security, the SGBs may be
used as collateral security for any loan. Banks and other eligible holders can acquire more than 500 gms of SGBs in a fiscal
year, through transfers etc., including transfers arising out of recovery proceedings.
 REFINANCING OF PROJECT LOANS: * The Reserve Bank has advised all NBFCs that the instructions issued by erstwhile
Department of Banking Operations and Development on refinancing of projects loans with reference to Framework for
Revitalising Distressed Assets in the Economy - Refinancing of Project Loans, sale of non-performing assets and other regulatory
measures, would be extended to all NBFCs. Accordingly, NBFCs may refinance any existing infrastructure and other project loans
by way of take-out financing, without a predetermined agreement with other lenders, and fix a longer repayment period.
* For existing project loans where the aggregate exposure of all institutional lenders is minimum Rs.1,000 crore, NBFCs may
refinance such loans by way of full or partial take-out financing, even without a predetermined agreement with other lenders, and
fix a longer repayment period.
* A lender who has extended only working capital finance for a project may be treated as ‘new lender’ for taking over a part of
the project term loan as required under the guidelines. This facility will be available only once during the life of the existing
project loans.
 CENTRAL KYC REGISTRY SET UP: * The Govt. had amended the Prevention of Money Laundering (Maintenance of Records)
Rules, 2005, (Rules), for setting up of the Central KYC Records Registry (CKYCR). The proposed CKYCR would receive, store,
safeguard and retrieve the KYC records in digital form of a client.
* The Govt. has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to
act as, and to perform the functions of the Central KYC Records Registry (CKYCR). All Regulated Entities (REs) shall capture KYC
information for sharing with the CKYCR in the manner prescribed for ‘individuals’ and ‘Legal Entities’.
MODIFIED KYC DIRECTIONS:The ‘live run’ of the CKYCR has started from July 15, 2016 in phased manner.
a) In the first phase, SCBs have been asked to upload the KYC data with CERSAI, in respect of new individual accounts opened on
or after July 15, 2016.
b) Regulated Entities (REs) other than SCBs may also participate in the live run of CKYCR from July 15, 2016.
c) Those REs which are not yet ready to join CKYCR process immediately, have been asked to take steps to prepare their
systems for uploading the KYC data in respect of new individual accounts.
˜MARGINAL COST OF FUNDS BASED LENDING RATE
Þ For computing interest rates on advances, RBI has provided methodology based on the marginal cost of funds. The aim is to
help improve the transmission of policy rates into the lending rates of banks.
Þ All rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016 will be priced with reference to the Marginal Cost of
Funds based Lending Rate (MCLR) which will be tenor linked internal benchmark for such purposes.
Þ The MCLR will comprise of: a) Marginal cost of funds; b) Negative carry on account of CRR; c) Operating costs; and d) Tenor
premium. Actual lending rates will be determined by adding the components of spread to the MCLR.
Þ Banks will review and publish their MCLR of different maturities every month on a pre-announced date. The periodicity of reset
shall be one year or lower.
Þ The MCLR prevailing on the day the loan is sanctioned will be applicable till the next reset date, irrespective of the changes in
the benchmark during the interim period.
3. Priority Sector Advances

A. Agriculture
Interest Subvention Scheme for Short Term Crop Loans during the year 2016-17- Grant of grace period of 60 days beyond due date
In view of the constraints faced by farmers for timely repayment of loan dues on account of withdrawal of legal tender status of
Specified Bank Notes (SBNs), GoI decided to provide an additional grace period of 60 days for prompt repayment incentive of
3% to those farmers whose crop loan dues are falling due between 1st November, 2016 and 31st December, 2016 if such farmers
repay the same within 60 days from the above period. RBI advised banks (Dec 26) to consider the above while submitting their
one-time consolidated 3% additional subvention claims pertaining to the disbursements made during the entire year 2016-17.
Agril. Natural Calamities Portal – Monthly Reporting System : RBI has developed a dedicated portal (https://
dbie.rbi.org.in/DCP/) for collection and compilation of data on natural calamities on a real time basis through a centralized
system. The portal provides facility of uploading data files related to relief measures extended by banks and notifications issued by
State Governments with regard to natural calamities. The portal has gone live on July 20, 2017.
RBI requested (03.08.17) SLBC / banks to direct the concerned department to upload the actual data on relief measures extended
during April June 2017 immediately and thereafter from July 2017 onwards every month, by the 10th of the following month.
SLBC Convener Banks are to upload the notifications issued by State/District Authorities for declaration of natural calamities for
which relief measures were implemented by SLBC/ banks from April 2017 onwards. The subsequent notifications are to be uploaded
as soon as the notifications are issued.
 DIRECT LENDING TO NON-CORPORATE FARMERS:
* The RBI has directed banks to ensure that their overall direct lending to non-corporate farmers does not fall below the system-
wide average of the last three years achievement. Banks should also continue to maintain all efforts to reach the level of 13.5
percent direct lending to the beneficiaries who earlier constituted the direct agriculture sector.
* The RBI has advised that the system-wide average of the last three years achievement with regard to overall direct lending to
non-corporate farmers under priority sector lending for the FY 2016-17 is 11.70 percent.
 DOUBLING FARMERS’ INCOME BY 2022: The Government of India in the Union Budget 2016-17 had announced its
resolve to double the income of farmers by 2022. Lead Banks advised to ensure the following:
a) Work closely with NABARD in preparation of Potential Linked Plans (PLPs) & Annual Credit Plans keeping the above strategy in
consideration.
c) Include ‘Doubling of Farmer’s Income by 2022’ as a regular agenda under
b) Lead Bank Scheme in various forums such as SLBC, DCC, DLRC & BLBC.
c) For the purpose of monitoring and reviewing the progress, Lead Banks may use the benchmarks as may be provided by
NABARD. d) Map the overall strategy for agriculture/agro-ancillary lending plan of the bank.
 RELAXATION OF PRUDENTIAL NORMS: In order to provide relief to small borrowers, RBI has decided to provide an additional
60 days beyond what is applicable for the concerned regulated entity (RE) for recognition of a loan account as substandard.
This will be applicable to personal and crop loans including housing and agricultural loans, taken from banks, NBFCs, DCCBs,
PACS or NBFC- MFIs.
 INTEREST SUBVENTION SCHEME: Government has approved the subvention scheme for the year 2016-17 for short term crop
loans upto Rs 3 lakh with the following stipulations:
*To provide interest subvention of 2% p.a. to Public Sector Banks in respect of short-term production credit from govt. through
RBI on half yearly basis. For prompt payment, interest subsidy @ 3% available to the borrowers on annual basis.
*This amount of subvention will be calculated on the crop loan amount from the date of its disbursement / drawal up to the date
of actual repayment of the crop loan by the farmer or up to the due date of the loan fixed by the banks for the repayment of the
loan, whichever is earlier, subject to a maximum period of one year.
*This subvention will be available to Public Sector Banks on the condition that they make available short-term production credit
up to Rs. 3 lakh at ground level at 7% p.a.
*Govt. will also provide additional interest subsidy of 3% p.a. to PSBs in respect of those prompt paying farmers who repay their
short-term production credit within one year of disbursement subject to the condition that the effective rate of interest on short-
term production credit up to Rs. 3 lakh for such farmers will now be 4% p.a.
In order to discourage distress sale by farmers and to encourage them to store their produce in warehouses against warehouse
receipts, the benefit of interest subvention will be available to small and marginal farmers having KCC for a further period of up to
six months post-harvest on the same rate as available to crop loan against negotiable warehouse receipt for keeping their
produce in warehouses. To provide relief to farmers affected by natural calamities, the interest subvention of 2% will continue to
be available to banks for the first year on the restructured amount.
 PRADHAN MANTRI FASAL BIMA YOJANA: * A new crop insurance scheme called Pradhan Mantri Fasal Bima Yojana (PMFBY)
was launched and will be administered under the Ministry of Agriculture and Farmers’ Welfare, Govt. of India. This scheme
replaced the then existing schemes of National Agricultural Insurance Scheme & Modified National Agricultural Insurance
Scheme from Kharif 2016.
* PMFBY will provide a comprehensive insurance cover against failure of the crop thus helping in stabilizing the income of the
farmers and encourage them for adoption of innovative practices. The Scheme can cover all Food & Oilseeds crops and
Annual Commercial / Horticultural Crops for which past yield data is available and for which requisite number of Crop Cutting
Experiments (CCEs) will be conducted being a part of the General Crop Estimation Survey (GCES).
PREMIUM: PMFBY would be available to the farmers at very low rates of premium.
 Rabi Crop: Maximum upto 1.5%; Kharif Food crops, Pulses and Oilseeds: Upto 2%;
 Annual Horticulture/ Commercial Crops: Upto 5%.
# The difference between premium and the rate of Insurance charges payable by farmers shall be shared equally by the Centre
and State.
B. MSME
Additional Limits for MSME : On Aug 27, 2015, banks were advised by RBI to incor-
porate with their Boards’ approval, in their lending policy to MSEs, a clause for fixing a separate additional limit, at the time of
sanction / renewal of working capital limits, specifically for meeting the temporary increase in working capital requirements arising
mainly due to unforeseen / seasonal increase in demand for products produced by them. Banks have since confirmed to RBI having
put such a policy in place.
Consequent upon withdrawal of legal tender status of Specified Bank Notes (SBN) of Rs.500 and Rs. 1000 denominations and based
on feedback that some MSEs are facing temporary difficulties in carrying out their normal business due to cash flow mismatches, RBI
decided to review the above instructions.
Accordingly, RBI advised banks (Dec 29) that they may use the facility of providing above ‘additional working capital limit’ (approved by
their boards as above) to their MSE borrowers, to overcome the difficulties arising out of such cash flow mismatches also. This would be
a onetime measure up to March 31, 2017 and should thereafter be normalised in fresh working capital assessment cycle
Investment in plant and machinery for classification as Micro, Small and Medium Enterprises —documents to be relied upon
As per Govt. notification dated 05.10.2006, while calculating the investment in plant and machinery to classify as MSME, the
original price thereof, shall be taken into account, irrespective of whether the plant and machinery are new or second hand.
On March 8, 2017, Govt. have clarified (RBI circular 13.07.17) that for ascertaining the investment in plant and machinery for
classification of an enterprises as Micro, Small and Medium, the following documents could be relied upon:
(i) A copy of the invoice of the purchase of plant and machinery; or
.
(ii) Gross block for investment in plant and machinery as shown in the audited accounts; or
(iii) A certificate issued by a Chartered Accountant regarding purchase price of plant and machinery. Further, the Ministry has
clarified that for the investment in plant and machinery for the purpose of classification of an enterprise as Micro, Small or
Medium, the purchase value of the plant and machinery is to be reckoned and not the book value (purchase value minus
depreciation). The above provision would be applicable from the date MSMED Act, 2006 came into force and for enterprises
engaged in manufacturing of goods and rendering of services as well.
 PS STATUS FOR FACTORING TRANSACTIONS: * To increase liquidity support for the MSME sector, the RBI has decided that
factoring transactions on ‘with recourse’ basis shall be eligible for priority sector classification by banks, which are carrying out
the business of factoring departmentally. The factoring transactions taking place through TReDS shall also be eligible for
classification under priority sector upon operationalization of the platform.
* Banks may classify their outstanding factoring portfolio on the reporting dates under MSME category, wherever the
‘assignor’ in the factoring transaction is a MSME, subject to the corresponding limits for investment in plant and machinery /
equipment and other extant applicable guidelines for priority sector classification.
* RBI has also reiterated that on Provision of Factoring Services by Banks, the borrower’s bank may also obtain from the borrower
periodical certificates regarding factored receivables to avoid double financing / counting. Further, the ‘factors’ must ensure to
intimate the limits sanctioned to the borrower to the concerned banks and details of debts factored taking responsibility to avoid
double financing.
C. Govt. Sponsored Schemes
FINANCIAL INCLUSION AND DEVELOPMENT
 The Reserve Bank on March 2, 2017 revised the policy on conduct of camps by Financial Literacy Centres (FLCs) and rural
branches of the banks.
 The Reserve Bank, on June 8, 2017, advised State Level Banker’s Committee (SLBCs) convenor banks to review and identify the
unbanked rural centres in villages with population above 5000, and ensure that such unbanked rural centres in villages with
population above 5000, if any, are banked forthwith by opening of core banking solution enabled banking outlet.
 With the increased thrust on financial inclusion and customer protection and considering the recent surge in customer
grievances relating to unauthorised transactions resulting in debits to their accounts / cards, the Reserve Bank on July 6, 2017
issued revised directions and criteria for determining the customer liability in these circumstances.
 The Reserve Bank in consultation with the Financial Inclusion Fund (FIF) Advisory Board, on July 13, 2017, revised the funding
support available to banks to the extent of 60 per cent of the expenditure of the financial literacy camp subject to a maximum of
Rs. 5,000/- per camp.
 The Reserve Bank has directed all commercial banks to upload the actual data on relief measures extended during April
June 2017 immediately and thereafter from July 2017 onwards every month by the 10th of the following month, on the
dedicated portal, developed for collection and compilation of data on natural calamities on a real time basis through a
centralised system.
 The Reserve Bank on November 10, 2017 launched a public awareness campaign through SMSes to educate the members of
the public about various banking regulations and facilities available to them.
Interest Subvention Scheme for NRLM
The revised guidelines for the year 2017-18 on Interest Subvention Scheme under DAY- NRLM, as received from the Ministry of Rural
Development, Government of India, were by RBI on 18.10.2017 for implementation by 21 Public Sector Banks and 19 Private Sector
Banks.
I. Interest subvention scheme on Credit to Women SHG during the year 2017-18 in 250 districts
i. All women SHGs are eligible for subvention on credit upto Rs. 3 lakhs.
ii. Banks will lend to all the women SHGs in rural areas at the rate of 7%.
iii. Banks will be subvented to the extent of difference between the Weighted Average Interest Charged (WAIC as specified by
Department of Financial Services, Ministry of Finance for the year 2017-18 – and 7% subject to the maximum limit of 5.5% for the
year 2017-18.
iv. Further, the SHGs will be provided with an additional 3% subvention on the prompt repayment of loans. For the purpose of
Interest Subvention of additional 3% on prompt repayment, an SHG account will be considered prompt payee if it satisfies the
following RBI criterion.
a. For Cash Credit Limit: Outstanding balance shall not have remained in excess of the limit/ drawing power continuously for more
than 30 days. There should be regular credit and debits in the accounts. In any case there shall be at least one customer induced
credit during a month. Customer induced credit should be sufficient to cover the interest debited during the month.
b. For the Term loans: A term loan account where all of the interest payments and/or instalments of principal were paid within 30
days of the due date during the tenure of the loan, would be considered as an account having prompt payment.
v. The scheme is limited to Women Self Help Groups in rural areas only
vi. The funding for the scheme will be met out of Central Allocation under DAY- NRLM
vii. The scheme shall be implemented for 2017-18, through Canara Bank (Nodal Bank). The Nodal Bank will operationalize the
scheme through a web based platform.
viii. To be eligible for interest subvention under the scheme, banks will have to operate under a Core Banking Solutions (CBS).
ix. The claims submitted by banks should be accompanied by claim certificate (in original) certifying the claims for subvention as
true and correct. The claims of any Bank for the quarter ending March 2018 will be settled by MoRD only on receipt of the
Statutory Auditor’s certificate for the complete FY17-18 from the Bank.
II. Interest subvention scheme for Category II Districts (Other than 250 districts).
All women SHGs under DAY- NRLM will be eligible for interest subvention to avail the loan facility at an interest rate of 7%. The
funding for this subvention will be provided to the State Rural Livelihoods Missions (SRLMs) from the allocation for DAY- NRLM. In
the Category II districts, Banks will charge the SHGs as per their respective lending norms and the difference between the lending
rates and 7% subjected to a maximum limit of 5.5% for the FY17-18 will be subvented in the loan accounts of the SHGs by the
SRLM
Aligning roadmap for unbanked villages having population more than 5000 with revised guidelines on Branch Authorisation
Policy
On Dec 31, 2015, SLBCs were advised by RBI to identify villages with population above 5000 without a bank branch of a scheduled
commercial bank in their State and allot these villages among scheduled commercial banks (including Regional Rural Banks) for
opening brick and mortar branches. Subsequently on 18.05.17, RBI issued 'Rationalisation of Branch Authorisation Policy -
Revision of Guidelines' wherein final guidelines on 'Banking Outlets' have been issued with a view to facilitate financial inclusion
as also to provide flexibility to banks on the choice of delivery channel.
In the circumstances, SLBC Convenor banks have been advised by RBI on Jun 08, 2017, to review and identify the unbanked rural
centres (URCs) in villages with population above 5000, in light of the revised guidelines on rationalisation of branch authorisation
policy and ensure that such unbanked rural centres in villages with population above 5000, if any, are banked forthwith by
opening of CBS enabled banking outlet. A confirmation stating that all unbanked rural centres in villages with population above
5000 have been banked, may be furnished to the respective Regional Office of Financial Inclusion and Development Department
of Reserve Bank of India latest by December 31, 2017.
Financial Literacy Week : To emphasize the importance of financial literacy, RBI decided (13.04.2017) to observe the week June
5-9, 2017 as Financial Literacy Week across the country. The literacy week will focus on 4 broad themes,
viz. KYC, Exercising Credit Discipline,Grievance
Redressal and Going Digital (UPI and *99#). The 5 messages that will be communicated to the common man based on the above
broad themes are available under "Financial Literacy Week" in the financial education webpage of RBI.
Local language versions of the posters (A3 size) to display in bank branches, flyers (A5 size) for distribution to camp participants
and charts (A2 size) for use by trainers during camps would be printed and provided by the Regional Offices of RBI. Each bank
branch would be provided with 5 A3' size posters (1 set of 5 posters). Each rural branch would additionally be provided with 500
A5 size flyers (100 sets of 5 flyers) for distribution in camps & bank branches and 5 A2 size charts (1 set of 5 charts) for use by rural
branch managers during conduct of camps. Each FLC would be provided with 5 A2 size charts (1 set of 5 charts) for use by FLC
Counsellors during conduct of camps and 1000 A5 flyers (200 sets of 5 flyers) for distribution to camp participants during camps by
FLCs. Banks have been advised to make logistical arrangements to collect the posters/flyers/charts from the Regional offices of RBI
during the first two weeks of May and distribute the same to their branches and FLCs well in advance before the Financial Literacy
Week. Activities : During the week, the following activities have been planned:
1. Banks to advise their Financial Literacy Centres to conduct special camps on each of the 5 days in backward/unbanked areas,
FLC Counsellors may utilize the charts of A2 size for training purposes. FLCs may distribute the promotional material of AS sizes
to the participants.
2. All bank branches in the country may display A3 size posters on the 5 messages in the local language in a prominent place
inside the branch premises. These posters will continue to be displayed for at least 6 months in the branch premises even after
the Financial Literacy week is over.
3. Banks may display one message each day on the home page of their websites in English and Hindi and also display one
message each day on the ATM screens across the country in English and the local languages
4. All Rural branches may conduct one camp on any of the 5 days of the week after branch hours.
.
5. An online quiz will be hosted for the general public on the four broad themes to generate interest/awareness about financial
.
literacy. Details of the quiz will be intimated shortly through RBI website.
Financial Literacy by FLCs
In terms RBI circular dated 14.01.2016, FLCs and rural branches were advised to conduct two types of camps (1) Special camps
for people newly inducted into financial system -1 camp per month for one year i.e. upto January 2017, (2) target group specific
camps 1 each for 5 target groups (farmers, small entrepreneurs, school children, senior citizens and SHGs).
The policy has been revised by RBI on 02.03.2017, as under: Financial Literacy Centres (FLCs): FLCs will conduct special camps for
a period of one year beginning April 1, 2017 on "Going digital" through UPI and *99# (USSD)". RBI has prepared posters, one on
UPI and one on *99# for trainers and the audience. These posters are available at RBI webpage.
Besides the special camps on going digital, FLCs will continue to conduct the tailored camps for the different target groups as per
extant guidelines. The tailored content for each target group is currently being prepared and is expected to be shared with
banks/FLCs in due course of time.
Rural branches of banks: Rural branches of banks shall conduct only one camp per month (on the 3rd Friday of each month after
branch hours). This camp will cover all the messages that are part of the Financial Awareness Messages (FAME) booklet and the
two digital platforms UPI and *99# (USSD). Where there are two or more rural branches in a village, the LDM may ensure that
the rural branches conduct the camps on rotation basis every month.
Funding support from FIF: FLCs and rural branches of banks are eligible for funding support for the financial literacy camps to the
extent of 60% of the expenditure of the camp subject to a maximum of 15,000/- per camp (NABARD circular dated Nov 13,
2015).
Reporting mechanism: W.e.f. 01.04.17, the quarterly report on FLCs will be submitted by SLBCs/UTLI3Cs to the respective
Regional office of RBI within 20 days, from the end of the quarter. The quarterly report on rural branches to be submitted within
30 days from the end of the quarter.
Funding Limits of FLCs
As per circular dated March 02, 2017, RBI had advised banks that FLCs and rural branches can avail funding support from the
Financial Inclusion Fund (FIF) for the financial literacy camps to the extent of 60% of the expenditure of the camp subject to a
maximum of Rs.15,000/- per camp. On a review, the FIF Advisory Board has revised (on 13.07.17) the funding support available
to banks to the extent of 60% of the expenditure of the camp subject to a maximum of Rs.5,000/- per camp.
 PMJJBY AMENDED: * The Reserve Bank has revised the rules for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) and
incorporated a lien clause in the rules of PMJJBY from June 1, 2016.
* As per the revised rules, claims for deaths which occur during the first 45 days from the date of enrolment will not be paid,
effectively meaning that the risk cover will commence only after the completion of 45 days from the date of enrolment into the
scheme by the member. However, deaths due to accidents will be exempt from the lien clause.
 NO SACP STATEMENTS: The RBI has discontinued the submission of the half yearly Special Agriculture Credit Plan (SACP)
statements that banks were required to forward to the Reserve Bank (Financial Inclusion and Development Deptt.), indicating
their progress in regard to flow of credit to Agriculture, at the end of March and Sept. every year.
 OPENING BRICK AND MORTAR BRANCHES: For increasing banking penetration and financial inclusion, the RBI has advised
SLBC Convenor banks to identify villages with population above 5000 without a bank branch of a scheduled commercial bank
in their State. The identified villages may be allotted among scheduled commercial banks (including RRBs) for opening of
branches. The opening of bank branches under this Roadmap should be completed by March 31, 2017.
 FINANCIAL LITERACY COUNSELLOR: The Financial Literacy Counsellor being a part of the lead bank office or a rural branch
should have a separate room/space with a seating capacity of minimum 10 members to address walk in customers.
 ACCOUNTS UNDER PMJDY: With a view to protect the innocent farmers and rural account holders of PMJDY from activities of
money launders and legal consequences under the Benami Property Transaction & Money Laundering laws, RBI as a
temporary measure, has advised the banks to observe the following:
* Fully KYC compliant account holders may be allowed to withdraw Rs.10,000/- from their account, in a month. The branch
managers may allow further withdrawals beyond Rs.10,000 within the current applicable limits only after ascertaining the
genuineness of such withdrawals and duly documenting the same on bank’s record.
* Limited or Non KYC compliant account holders were allowed to withdraw Rs.5,000 per month from the amount deposited
through SBNs after Nov. 09, 2016 within the overall ceiling of Rs.10,000.
 CREDIT FACILITIES TO MINORITY COMMUNITIES: * With a view to monitoring the performance of banks in providing credit
to the specified minority communities, data on credit assistance provided to members of minority communities should be
furnished to RBI and to the Government of India, Ministry of Finance and Ministry of Minority Affairs, on half yearly basis
as on the last Friday of March and September every year. The statements should reach Reserve Bank of India within one
month from the close of each half year. * The Lead Banks in the identified districts should furnish the relevant extracts of the
agenda notes and the minutes of the meetings of the DCCs and of the respective SLBCs to the Union Ministry of Finance and to
the Ministry of Minority Affairs on a quarterly basis for their use.
4. Basel & Risk Management

Eligible Credit Rating Agencies- Rating of NBFC-FD by Infomerics Valuation and Rating Private Limited (IVRPL) As per Master Direction
dated 25.08.16, the names of six approved Credit Rating Agencies and their minimum investment grade credit ratings have been listed.
RBI decided on 14.07.17, that NBFCs can also use the ratings of Infomerics Valuation and Rating Private Limited for rating the fixed
deposit portfolios of NBFCs with IVR BBB as the minimum investment grade credit rating.
Risk Management and Interbank Dealings- Reports to the Reserve Bank
In terms RBI circular dated July 05, 2016, the Head/Principal Office of AD Category-I banks are required to submit a statement in form
BAL giving details of their holdings of all foreign currencies on fortnightly basis through Online Returns Filing System (ORFS) within seven
calendar days from the close of the reporting period to which it relates. RBI decided (on 10.08.17) that w.e.f. August 16, 2017 (i.e. for
the statement of first fortnight of August 2017), this statement may be submitted through the web portal at https://
bop.rbi.org.in as per prescribed format. Head/Principal Office of AD Cat-I banks earlier required to submit a monthly statement
of Nostro/Vostro account balances are to discontinue this report.
Basel III Framework on Liquidity Standards – Liquidity Coverage Ratio (LCR), Liquidity Risk Monitoring Tools and LCR Disclosure
Standard : In partial modification of extant guidelines, RBI decided (02.08.17) that Level 1 assets of banks would comprise of
following. These assets can be included in the stock of liquid assets without any limit as also without applying any haircut: i. Cash
including cash reserves in excess of required CRR.
(a). For banks incorporated in India,
 Reserves held with foreign Central Banks in excess of reserve requirement, where a foreign sovereign has been assigned
a 0% risk weight as per rating by an international rating agency.
(Central bank’s reserves would include banks overnight deposits with central banks, and term deposits with the central banks
that: (i) are explicitly and contractually repayable on notice from the depositing bank; or (ii) that constitute a loan against which
the bank can borrow on a term or on an overnight basis but automatically renewable basis (only where the bank has existing
deposit with the relevant central bank). Other term deposits with central banks are not eligible for the stock of HQLA. However, if
the term expires within 30 days, the term deposits could be considered as an inflow).
 Reserves held with foreign Central Banks in excess of the reserve requirement, to the extent these balances cover the
bank’s stressed net cash outflows in that specific currency, in cases where a foreign sovereign has been assigned a non-0% risk
weight as per rating by an international rating agency, but a 0% risk weight has been assigned at national discretion under Basel
II Framework.
ii. Government securities in excess of the minimum SLR requirement.
iii. Within the mandatory SLR requirement, Government securities to the extent allowed by RBI, under Marginal Standing Facility
(MSF). (Government securities to the extent of 2 per cent of NDTL may be included i.e. currently allowed under marginal standing
facility (MSF).
iv. Marketable securities issued or guaranteed by foreign sovereigns satisfying all the following conditions:
(These securities will include only marketable securities which attract a 0% risk-weight in terms RBI Master Circular dated
01.07.13. In cases where a foreign sovereign has been assigned a non-0% risk weight as per rating by an international rating
agency, but a 0% risk-weight has been assigned at national discretion under Basel II Framework, marketable securities issued or
guaranteed by that foreign sovereign within its domestic jurisdiction will be allowed to the extent those securities cover a bank’s
stressed net cash outflows in that specific foreign currency stemming from the bank’s operations in the jurisdiction where the
bank’s liquidity risk is being taken.)
(a) assigned a 0% risk weight under the Basel II standardized approach for credit risk;
(b) Traded in large, deep and active repo or cash markets characterised by a low level of concentration; and proven record
as a reliable source of liquidity in the markets (repo or sale) even during stressed conditions.
(c) not issued by a bank/FI/NBFC or any of its affiliated entities.
(d) Prudential Guidelines on Capital Adequacy and Market Discipline- New Capital Adequacy Framework (NCAF) - Eligible Credit
Rating Agencies — INFOMERICS Valuation and Rating Pvt Ltd. (INFOMERICS)
(e) In terms exant guidelines, six domestic credit rating agencies viz. CARE, CRISIL, FITCH India,, ICRA/, Brickwork Ratings and
SMERA have been accredited for the purpose of risk weighting the banks' claims for capital adequacy purposes. The long term
and short term ratings issued by these domestic credit rating agencies have been mapped to the appropriate risk weights
applicable as per the 'Standardised Approach under the Basel II Framework.
(f) On Jun 13, 2017, RBI advised that banks may also use the ratings of the INFOMERICS Valuation and Rating Pvt Ltd.
(INFOMERICS) for the purpose of risk weighting their claims for capital adequacy purposes in addition to the existing six domestic
credit rating agencies. The rating-risk weight mapping for the long term and short term ratings assigned by INFOMERICS will be
the same as in case of other rating agencies.
RISK MANAGEMENT SYSTEMS – ROLE OF THE CHIEF RISK OFFICER (CRO): The Reserve Bank on April 27, 2017, advised all
scheduled commercial banks that as part of effective risk management, banks are required, to have a system of separation of
credit risk management function from the credit sanction process. In order to bring uniformity in approach
followed by banks, as also, to align the risk management system with the best practices, banks are advised as under:
a) They shall lay down a Board-approved policy clearly defining the role and responsibilities of the Chief Risk Officer (CRO).
b) Appointment of the CRO shall be for a fixed tenure with the approval of the Board of Directors of the banks. The CRO
may be transferred / removed from his post before completion of the tenure only with the approval of the Board and such
premature transfer / removal shall be reported to the Deptt. of Banking Supervision, RBI. In case of listed banks, any
change in incumbency of CRO shall be reported to the stock exchanges also.
c) CRO shall be a senior official in the banks’ hierarchy and shall have the necessary and adequate professional qualification /
experience in the areas of risk management.
d) The CRO shall have direct reporting lines to the MD & CEO / Risk Management Committee (RMC) of the Board. In case the
CRO reports to the MD & CEO, the RMC shall meet the CRO on one-to-one basis, without the presence of the MD & CEO, at
least on a quarterly basis.
e) The CRO shall not have any reporting relationship with the business verticals of the bank and shall not be given any business
targets.
f) In case the CRO is associated with the credit sanction process, it shall be clearly enunciated whether the CRO’s role would be
that of an adviser or a decision maker. The policy shall include the necessary safeguards to ensure the independence of the
CRO.
g) In banks that follow committee approach in credit sanction process for high value proposals, if the CRO is one of the decision
makers in the credit sanction process, he shall have voting power and all members who are part of the credit sanction process,
shall individually and severally be liable for all the aspects, including risk perspective related to the credit proposal. If the CRO is
not a part of the credit sanction process, his role will be limited to that of an adviser.
h) In banks which do not follow committee approach for sanction of high value credits, the CRO can only be an adviser in the
sanction process and shall not have any sanctioning power.
i) The CRO in his role as an adviser shall be an invitee to the credit sanction / approval committee without any voting rights in
the proceedings of the committee.
j) There shall not be any ‘dual hatting’ i.e. the CRO shall not be given the responsibility of Chief Executive Officer, Chief
Operating Officer, Chief Financial Officer, Chief of the internal audit function or any other function.
 LINKAGE OF AADHAAR: The RBI on October 21, 2017 clarified that, in applicable cases, linkage of Aadhaar number to bank
account is mandatory under the Prevention of Money-laundering (Maintenance of Records).
 INFOMERICS FOR CREDIT RATING: The Reserve Bank, on June 13, 2017, advised all scheduled commercial banks that they may also
use the ratings of the INFOMERICS (Integrated Financial Omnibus Metrics Research of International Corporate Systems) Valuation
and Rating Pvt Ltd., for the purpose of risk weighting their claims for capital adequacy purposes in addition to the existing six
domestic credit rating agencies (CARE, CRISIL, FITCH India, ICRA, Brickwork Ratings and SMERA). The rating-risk weight mapping for
the long term and short term ratings assigned by INFOMERICS will be the same as in case of other rating agencies.
 THE LEGAL ENTITY IDENTIFIER (LEI): LEI code is conceived as a key measure to improve the quality and accuracy of financial data
systems for better risk management post the Global Financial Crisis. LEI is a 20-digit unique code to identify parties to financial
transactions worldwide. The LEI is a global standard, designed to be non-proprietary data that is freely accessible to all.
The Legal Entity Identifier (LEI) is the International ISO standard 17442. RBI has decided that the banks shall advise their
existing large corporate borrowers having total exposures of Rs.50 crore and above to obtain LEI.
 BASEL III FRAMEWORK ON LIQUIDITY STANDARDS: * The RBI has permitted banks to reckon government securities held by
them up to another 3% of their Net Demand and Time Liabilities (NDTL) under Facility to Avail Liquidity for Liquidity Coverage
Ratio (FALLCR) within the mandatory Statutory Liquidity Ratio (SLR) requirement as Level 1 High Quality Liquid Assets (HQLAs)
for the purpose of computing their Liquidity Coverage Ratio (LCR).
* This is in addition to the assets allowed to banks as the Level 1 HQLAs for the purpose of computing the LCR of banks. Hence,
the total carve-out from SLR available to banks would be 10 per cent of their NDTL.
* For this purpose, banks should continue to value such reckoned government securities within the mandatory SLR
requirement at an amount not greater than their current market value (irrespective of the category of holding the security).
* The Reserve Bank on July 21, 2016 has decided that in addition to previous limits, banks will be permitted to reckon government
securities held by them up to another 1 per cent of their Net Demand and Time Liabilities (NDTL) under Facility to Avail Liquidity
for Liquidity Coverage Ratio (FALLCR) within the mandatory Statutory Liquidity Ratio (SLR) requirement as level 1 High Quality
Liquid Assets (HQLA) for the purpose of computing their Liquidity Coverage Ratio (LCR). Hence, the total carve-out from SLR
available to banks would be 11 per cent of their NDTL.
* For this purpose, banks should continue to value such reckoned government securities within the mandatory SLR requirement
at an amount not greater than their current market value (irrespective of the category of holding the security, that is, Available
for Sale(AFS), Held for Trading (HFT) or Held to Maturity (HTM).
I) TREATMENT OF REVALUATION RESERVES:
Revaluation reserves arising out of change in the carrying amount of a bank’s property consequent upon its revaluation may, at
the discretion of banks, be reckoned as CET1 capital at a discount of 55%, instead of as Tier 2 capital under extant regulations,
subject to following conditions:
a) Bank is able to sell the property readily at its own will and there is no legal impediment in selling the property;
b) The revaluation reserves are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;
c) Valuations are obtained, from two independent valuers, at least once in every 3 years; where the value of the property has
been substantially impaired by any event, these are to be immediately revalued and appropriately factored into capital
adequacy computations;
II) FOREIGN CURRENCY TRANSLATION RESERVE (FCTR): Banks may, at their discretion, reckon foreign currency translation
reserve arising due to translation of financial statements of their foreign operations in terms of Accounting Standard (AS) 11 as
CET1 capital at a discount of 25% subject to meeting the following conditions:
c) The FCTR are shown under Schedule 2: Reserves & Surplus in the Balance Sheet of the bank;
d) The external auditors of the bank have not expressed a qualified opinion on the FCTR.
III) TREATMENT OF DEFERRED TAX ASSETS (DTAS):
d) Deferred tax assets (DTAs) associated with accumulated losses and other such assets should be deducted in full from CET1
capital.
e) DTAs which relate to timing differences (other than those related to accumulated losses) may, instead of full deduction from
CET1 capital, be recognised in the CET1 capital up to 10% of a bank’s CET1 capital, at the discretion of banks.
f) Further, the limited recognition of DTAs as above along with limited recognition of significant investments in the common
shares of unconsolidated financial (i.e. banking, financial and insurance) entities taken together must not exceed 15% of the
CET1 capital, calculated after all regulatory adjustments. However, banks shall ensure that the CET1 capital arrived at after
application of 15% limit should in no case result in recognising any item more than the 10% limit applicable individually.
5. NPA & Recovery Management

SARFAESX Act, 2002 - Requirement of Net Owned Fund (NOF) for Asset Reconstruction Companies.
Section 5 of the Enforcement of Security Interest and Recovery of Debts Laws & Misc. Provisions (Amendment) Act, 2016
substituted dause (b) in subsection (1) of Section 3 of the Securitisation and Reconstruction of Financial Assets and Enforcement
of Security Interest Act, 2002 (hereinafter referred to as "the SARFAESI Act, 2002").
Consequent to this, no Asset Reconstruction Company (ARC) shall commence or carry on the business of securitisation or asset
reconstruction without having Net Owned Fund (hereinafter referred to as NOF) of not less than Rs.2 cr or such other higher
amount as RBI may, by notification, specify.
RBI decided (28.04.17) to fix the minimum NOF requirement for ARCS at Rs.100 crore on an ongoing basis.
NOF shall be arrived at by reducing from Owned Fund (OF), the amounts representing -
I. investments of the ARC in shares of its subsidiaries; companies in the same group; all other ARCs; and
the book value of debentures, bonds, outstanding loans and advances made to, and deposits with, subsidiaries of the ARC; and
companies in the same group, to the extent such amount exceeds 10% of the OF.
All the ARCS which are already registered with RBI and not having the revised minimum NOF as on date shall achieve a minimum
NOF of Rs.100 crore latest by March 31, 2019.
ARCS shall submit a certificate from their Statutory Auditors periodically as evidence of compliance thereof.
Provision for Standard Loans
RBI advised 'banks (18.04.17) that the provisioning rates RBI prescribed are the regulatory minimum and banks are encouraged
to make provisions at higher rates for advances to stressed sectors. To ensure that banks have adequate provisions for loans at
all times, RBI advised as under:
i) Banks shall put in place a Board—approved policy for making provisions for standard assets at rates higher than the regulatory
minimum, based on evaluation of risk and stress in various sectors.
ii) The policy should be reviewed, on a quarterly basis, of the performance of various sectors of the economy to which the bank has
an exposure to evaluate the present and emerging risks and stress therein. The review may include quantitative and qualitative
aspects like debt-equity ratio, interest coverage ratio, profit margins, ratings upgrade to downgrade ratio, sectoral non-performing
assets/stressed assets, industry performance and outlook, legal/ regulatory issues faced by the sector, etc. The reviews may also
include sector specific parameters.
iii) More immediately, as the telecom sector is reporting stressed financial conditions, and presently interest coverage ratio for the
sector is less than one, Board of Directors of the bat ks may review the telecom sector latest by June 30, 2017, and consider making
provisions for standard assets in this sector at higher rates so that necessary resilience Is built in the balance sheets should the stress
reflect on the quality of exposure to the sector at a future date. Besides, banks should also subject the exposure to the sector to
closer monitoring.
Prudential Guidelines — Banks' investment in units of REITs and InvITs
RBI decided (18.04.2017) to allow banks to participate in Real Estate Investment Trusts (REITs) and Infrastructure Investment
Trusts (InvITs) within the overall ceiling of 20% of their net worth permitted for direct investments in shares, convertible bonds/
debentures, units of equity-oriented mutual funds and exposures to Venture Capital Funds (VCFs) [both registered and
unregistered], subject to the following conditions:
1. Banks should put in place a Board approved policy on exposures to REITs/ InviTs which lays down an internal limit on such
investments within the overall exposure limits in respect of the real estate sector and infrastructure sector.
2. Banks shall not invest more than 10% of the unit capital of an REIT/ InvIT.
3. Banks should ensure adherence to the prudential guidelines issued by RBI on Equity investments, Classification and Valuation
of Investment Portfolio, Basel III Capital requirements for Commercial Real Estate Exposures and Large Exposure Framework.
Disclosure in the 'Notes to Accounts" to the Financial Statements- Divergence in the asset classification and provisioning
RBI makes assessment of compliance by banks with extant prudential norms on income recognition, asset classification and
provisioning (IRACP) as part of its supervisory processes. There have been instances of material divergences in banks' asset
dassification and provisioning from the RBI norms, thereby leading to the published financial statements not depicting a true
and fair view of the financial position of the bank.
In order to ensure greater transparency and promote better discipline with respect to compliance with IRACP norms, RBI decided
on 18.04.2017, that banks shall make suitable disclosures in the prescribed form where either (a) the additional provisioning requirements assessed
by RBI exceed 15% of the published net profits after tax for the reference period or (b) the additional Gross NPAs identified by RBI exceed 15% of the
published incremental Gross NPAsi for the reference period, or both.
These disclosures, shall be made In the Notes to Accounts in the ensuing Annual Financial Statements published immediately following
communication of such divergence by RBI to the bank.
The first such disclosure with respect to the divergences observed by RBI for the financial year 2015-16 shall be made in the Notes to Accounts of
Financial Statements for the year ended March 31, 2017.
 STRESSED ASSETS: The Reserve Bank upon the promulgation of the Banking Regulation (Amendment)
Ordinance, 2017 issued a directive on stressed assets as under:
a)It was clarified that a corrective action plan could include flexible restructuring, Strategic Debt Restructuring (SDR) and Scheme
for Sustainable Structuring of Stressed Assets (S4A).
b)Consent required for approval of a proposal was changed to 60 per cent of creditors by value instead of 75 per cent earlier,
while keeping the value of creditors by number at 50 per cent. Banks who were in the minority on the proposal approved by
the JLF are required to either exit by complying with the substitution rules within the stipulated time or adhere to the decision
of the JLF.
c)Participating banks have been mandated to implement the decision of JLF without any additional conditionality.
d)The Boards of banks were advised to empower their executives to implement JLF decisions without further reference to
them.
 ASSET RECONSTRUCTION COMPANY (ARC):
Keeping in view the greater role envisaged for Asset Reconstruction Companies (ARCs) in resolving stressed assets as also the
recent regulatory changes governing sale of stressed assets by banks to ARCs, the RBI on April 28, 2017 decided to fix the
minimum Net Owned Fund (NOF) requirement for ARCs at Rs.100 crore on an ongoing basis. All the ARCs which are already
registered with the RBI as on April 28, 2017 and not having the revised minimum NOF as on date shall achieve a minimum NOF of
Rs.100 crore latest by March 31, 2019.
 REVISED FRAMEWORK FOR PCA FOR BANKS:
The Reserve Bank on April 13, 2017 revised the framework for Prompt Corrective Action (PCA) for banks.
PCA norms allow the regulator to place certain restrictions such as halting branch expansion and stopping dividend payment. It
can even cap a bank’s lending limit to one entity or sector. Other corrective actions that can be imposed on banks include
special audit, restructuring operations and activation of recovery plan. Banks’ promoters can be asked to bring in new
management, too. The RBI can also supersede the bank’s board, under PCA. The provisions of the revised PCA framework will
be effective April 1, 2017 based on the financials of the banks for the year ended March 31, 2017. The framework will be
reviewed after three years.
 The salient features of the revised PCA framework are: a)Capital, asset quality and profitability continue to be the key areas
for monitoring in the revised framework;
b)Indicators to be tracked for capital, asset quality and profitability would be Capital to Risk (Weighted) Assets Ratio (CRAR) /
Common Equity Tier- I ratio, Net NPA ratio and Return on Assets, respectively; Leverage to be monitored additionally as part
of the PCA framework;
c)Breach of any risk threshold would result in invocation of PCA;
d)The PCA framework would apply without exception to all banks operating in India including small and foreign banks operating
through branches or subsidiaries based on breach of risk thresholds of identified indicators; and
e)A bank will be placed under PCA framework based on the audited Annual Financial Results and the Supervisory Assessment
made by the Reserve Bank. However, the RBI may impose PCA on any bank during the course of a year in case the
circumstances so warrant.
 INCOME RECOGNITION, ASSET CLASSIFICATION AND PROVISIONING PERTAINING TO ADVANCES: On a review of Prudential
Norms, RBI has decided following:
i) Provide 30 days, in addition to the 60 days as per the extant guidelines in the following categories of loans:
a) Running working capital accounts (OD/CC)/crop loans, with any bank, the sanctioned limit whereof is Rs.1 crore or less;
b) Term loans for business purposes, secured or otherwise, the original
sanctioned amount whereof is Rs.1 crore or less, on the books of any bank
or any NBFC, including NBFC (MFI). This shall include agriculture loans. The limits at (a) and (b) above are mutually exclusive
limits applicable to respective category of loans. The above dispensation will apply to dues payable between November 1, 2016
and December 31, 2016.
ii) Permit all REs to defer the down grade of an account that was standard as on November 1, 2016, but would have become NPA
for any reason during the period November 1, 2016 to December 31, 2016, by 90 days from the date of such downgrade in the
following categories of accounts:
a)Running working capital accounts (OD/CC)/crop loans, with any bank, the sanctioned limit whereof is Rs.1 crore or less;
b)Term loans for business purposes, secured or otherwise, the original sanctioned amount whereof is Rs.1 crore or less, on the
books of any bank or any NBFC, including NBFC (MFI). This shall include agriculture loans.
* The limits at (a) and (b) above are mutually exclusive limits applicable to respective category of loans.
* The additional time given in para 2 shall only apply to defer the classification of an existing standard asset as substandard and
not for delaying the migration of an account across sub-categories of NPA.
* Dues payable after January 1, 2017 will be covered by the extant instructions for the respective REs.
 REVIVAL & REHABILITATION OF MSMEs:
* While the prudential norms on Income Recognition, Asset Classification and Provisioning pertaining to Advances will continue to
be as per the extant guidelines, the revival and rehabilitation of MSMEs having loan limits up to Rs.25 crore will be in terms of
these operating instructions.
* Restructuring of loan accounts with exposure of above Rs.25 crore will continue to be governed by the extant guidelines on
Corporate Debt Restructuring (CDR) / Joint Lenders’ Forum (JLF) mechanism.
a) Eligibility: The provisions made in this framework shall be applicable to MSMEs having loan limits up to Rs.25 crore, including
accounts under consortium or multiple banking arrangement (MBA).
b) Identification of incipient Stress:
Before a loan account of a Micro, Small and Medium Enterprise turns into a Non-Performing Asset (NPA), banks or creditors
should identify incipient stress in the account by creating three sub-categories under the Special Mention Account (SMA) category
as follows:
SMA Sub- Basis for Classification
categories
SMA-0 Principal or interest payment not overdue for
more than 30 days but account showing signs
SMA-1 of incipientor
Principal stress.
interest payment overdue
between 31-60 days.
SMA-2 Principal or interest payment overdue
between 61-90 days.
On the basis of the above early warning signals, the branch maintaining the account should consider forwarding the stressed
accounts with aggregate loan limits above Rs.10 lakh to the Committee for corrective action plan (CAP) within five working
days for a suitable corrective action plan. Forwarding the account to the Committee for CAP will be mandatory in cases of
accounts reported as SMA-2. As regards accounts with aggregate loan limits up to Rs.10 lakh identified as SMA-2, the account
should be mandatorily examined for CAP by the branch itself under the authority of the branch manager as decided by the bank
in terms of their Board approved policy.
Identification by the Borrower Enterprise: Any MSME borrower may( voluntarily initiate proceedings under this Framework, if
the enterprise reasonably apprehends failure of its business or its inability or likely inability to pay debts or there is erosion in the
net worth due to accumulated losses to the extent of 50% of its net worth during the previous accounting year, by making an
application to the branch or directly to the Committee. When such a request is received by lender, the account with aggregate
loan limits above Rs.10 lakh should be referred to the Committee.
d) Application to the Committee for a CAP:
Where an application is filed by a bank / lender and admitted by the Committee, the Committee shall notify the concerned
enterprise about such application within five working days and require the enterprise to disclose the details of all its
liabilities, including the liabilities owed to the State or Central Govt. and unsecured creditors, if any, within fifteen working
days of receipt of such notice;
Within 30 days of convening its first meeting for a specific enterprise, the Committee shall take a decision on the option to be
adopted under the corrective action plan and notify the enterprise about such a decision, within five working days from the date
of such decision.
If the corrective action plan decided by the Committee envisages restructuring of the debt of the enterprise, the Committee shall
conduct the detailed TechnoEconomic Viability (TEV) study and finalise the terms of such a restructuring in accordance with the
extant prudential norms for restructuring, within 20 working days (for accounts having aggregate exposure up to Rs.10 crore) and
within 30 working days (for accounts having aggregate exposure above Rs.10 crore and up to Rs.25 crore) and notify the
enterprise about such terms, within five working days.
Upon finalisation of the terms of the corrective action plan, the implementation of that plan shall be completed by the
concerned bank within 30 days (if the CAP is Rectification) and within 90 days (if the CAP is restructuring). In case recovery is
considered as CAP, the recovery measures should be initiated at the earliest.
e) Corrective Action Plan by the Committee: The Committee may explore various options to resolve the stress in the account.
While Techno-Economic viability of each account is to be decided by the concerned lenders before considering restructuring as
CAPs, for accounts with aggregate exposure of Rs.10 crore and above, the Committee should conduct a detailed Techno-
Economic Viability study before finalising the CAP. During the period of operation of CAP, the enterprise shall be allowed to avail
both secured and unsecured credit for its business operations as envisaged under the terms of CAP.
 SCHEME FOR SUSTAINABLE STRUCTURING OF STRESSED ASSETS (S4A):
* S4A means Scheme for Sustainable Structuring of Stressed Assets. It is restructuring large ticket loans where the project is
running but the accounts have become irregular. Here the lenders are required to separate a sustainable loan from an
unsustainable loan. The bank would convert the unsustainable debt into equity or equity related instruments.
* The S4A is aimed to revive companies that are facing stress either due to slowdown in the economy or over leveraging. The
scheme tries to strike a compromise between banks with problem accounts and corporate defaulters of non-wilful variety, by
converting a portion of large loan a/cs into equity shares. a) ELIGIBILITY CONDITIONS:
a) The aggregate exposure (including accrued interest) of all institutional lenders in the account is more than Rs.500 crore;
b) The project should have commenced operations and generating cash.
c) An external consultant should endorse it as a viable project through a techno-economic viability (TEV) study and the forensic
audit should give a clean chit to the promoter.
d) For the loan to be eligible for S4A, at least 50 per cent of it should be ‘sustainable’.
SUSTAINABLE DEBTS:
a) The portion of the loan that can be serviced through the existing cash flow is defined as sustainable debt. As per RBI
guidelines, the sustainable loan should be at least 50% or more of the unsustainable debt. The loan can be approved for S4A only
if the Overseeing Committee endorses it.
b) Under the proposed S4A scheme, the first part will be sustainable debt. The level of debt so determined will be Part A under
the scheme. For the purpose of determining the level of debt that can be serviced, the assessed free cash flow will be allocated to
servicing each existing debt facility in the order in which its servicing falls due.
c) The balance debt - Part B, will be converted into equity / redeemable cumulative optionally convertible preference
shares. LATEST GUIDELINES:
a) As per the revised norms, in case a non-performing asset (NPA) is restructured under S4A norms, the sustainable part of the
debt can be classified as standard if banks set aside provisions equal to at least 50% of the debt classified as unsustainable or 20%
of aggregate debt, whichever is higher. For this purpose, the provisions already held in the account can be reckoned.
b) RBI also stated that the unsustainable part of debt in any S4A whether the account was NPA or standard at the time of
restructuring, could be upgraded to standard, if the sustainable half of the debt performed satisfactorily for one year. Banks
would also be allowed to reverse all provisions made when the unsustainable half of the debt is upgraded. However, in all cases,
the required mark-to-market provisions on instruments after conversion of unsustainable debt must be maintained at all times.
c) In the 5/25 scheme, which allowed loan payments to be stretched out, RBI has increased the coverage to all sectors. It has also
allowed smaller projects where banks have at least Rs. 250 crore exposure to qualify for this scheme.
d) The 5:25 scheme allows banks to extend long-term loans of 20-25 years to match the cash flow of projects, while
refinancing them every 5 or 7 years. Until now, banks were typically not lending beyond 10-12 years. As a result, cash flows of
infrastructure firms were stretched as they tried to meet shorter repayment schedules. With this change in rule, cash flows will
match the repayment schedule and long-term infrastructure projects will become viable. Reserve Bank of India has extended
5:25 scheme to some existing installed infrastructure projects.
 SALE OF STRESSED ASSETS BY BANKS: In order to further strengthen banks’ ability to resolve their stressed assets effectively,
RBI has decided to put in place an improved framework governing sale of such assets by banks to SCs/RCs/other banks/Non
Banking Financial Companies / Financial Institutions etc.
Policy on Sale of Stressed Assets: In terms of extant instructions of the RBI, the board of banks shall lay down detailed policies
and guidelines on sale of their stressed assets to Securitisation Companies (SCs) / Reconstruction Companies (RCs). The policy
shall cover the following aspects: a) Financial assets to be sold; b)Norms and procedure for sale of such financial assets;
c)Valuation procedure to be followed to ensure that the realisable value of financial assets is reasonably estimated;
d)Delegation of powers of various functionaries for taking decision on the sale of the financial
assets; etc. ‘True Sale’ of Assets:
a) With effect from April 1, 2017, where the investment by a bank in SRs backed by stressed assets sold by it, under an asset
securitisation, is more than 50 percent of SRs backed by its sold assets and issued under that securitisation, the provisions held
in respect of these SRs will be subject to a floor. This floor shall be progressive provisioning as per extant asset classification
and provisioning norms, notionally treating book value of these SRs as the corresponding stressed loans, assuming these had
remained, without recovery of principal, on the bank's books.
In effect, provisioning requirement on SRs will be higher of the: Provisioning rate required in terms of net asset value declared
by the SCs/RCs; and Provisioning rate as applicable to the underlying loans, assuming that the loans notionally continued in the
books of the bank;
b) With effect from April 1, 2018, the above threshold of 50 percent will stand reduced to 10 percent.
First right of Refusal: To enhance SC/RCs ability to aggregate debt faster, a bank offering stressed assets for sale shall offer the
first right of refusal to a SC/RC which has already acquired the highest and at the same time a significant share (25-30%) of the
asset, for acquiring the asset by matching the highest bid. This requires the process of price discovery via auction to be done
first.
Swiss Challenge Method – Enabling Low Vintage and Debt Aggregation: ˜ In order to bring down the vintage of NPAs sold by
banks as well as to enable faster debt aggregation by SC/RCs, banks shall put in place board approved policy on adoption of
Swiss Challenge Method for sale of their stressed assets to SCs/RCs/other banks/NBFCs/FIs, etc.
The broad contours of the Swiss Challenge Method are as under:
a) A prospective buyer interested in buying a specific stressed asset may offer a bid to the bank;
b) If the asset features in the list of assets for sale maintained by the bank, and if the aforesaid bidder offers more than the
minimum percentage specified in the bank’s policy (say, 30 percent of outstanding loan) in the form of cash, the bank shall be
required to publicly call for counter bids from other prospective buyers, on comparable terms;
c) Once bids are received, the bank shall first invite the SC/RC, if any, which has already acquired highest significant stake to
match the highest bid. ˜ The order of preference to sell the asset shall be as follows:
(i) The SC/RC which has already acquired highest significant stake;
(ii) The original bidder, and iii)The highest bidder during the counter bidding process. ˜
Bank will have the following two options:
i) Sell the asset to winning bidder, as determined above;
ii) If the bank decides not to sell the asset to winning bidder, bank will be required to make immediate provision in the a/c
to the extent of the higher of:
a) The discount on the book value quoted by the highest bidder;
b) The provisioning required as per extant asset classification & provisioning norms.
 LARGE EXPOSURES FRAMEWORK & ENHANCING CREDIT SUPPLY THROUGH MARKET MECHANISM:
* The Reserve Bank of India observed that many large corporates are excessively leveraged and banking sector’s aggregate
exposure towards such companies is also excessively high. This poses a collective concentration risk to the banking sector, even
when the single and group borrower exposures for each bank remain well within the prescribed exposure limits.
* The need therefore arises for a framework that mitigates the risk posed to the banking system on account of large aggregate
lending by the banking system to a single corporate as the single borrower exposure limit linked to a bank’s Tier 1 capital may
not by itself be sufficient to contain the risk the banking system is exposed to. RBI’s GUIDELINES:
1) DEFINITIONS: For the purpose of this Framework, the following terms shall have the meaning assigned to them herein below:
a) Aggregate Sanctioned Credit Limit (ASCL): ASCL means the aggregate of the fund based credit limits sanctioned or
outstanding, whichever is higher, to a borrower by the banking system. ASCL would also include unlisted privately placed debt
with the banking system.
b) Specified Borrower: Specified borrower, means a borrower having an ASCL of more than:
 Rs.25,000 crore at any time during FY 2017-18;
 Rs.15,000 crore at any time during FY 2018-19;
 Rs.10,000 crore at any time from April 1, 2019 onwards.
c) Reference Date: Reference date means the date on which a borrower becomes a ‘specified borrower’.
d) Normally Permitted Lending Limit (NPLL): NPLL means 50 percent of the incremental funds raised by the specified borrower
over and above its ASCL as on the reference date, in the financial years (FYs) succeeding the FY in which the reference date falls.
For this purpose, any funds raised by way of equity shall be deemed to be part of incremental funds raised by the specified
borrower (from outside the banking system) in the given year; provided that where a specified borrower has already raised funds
by way of market instruments and the amount outstanding in respect of such instruments as on the reference date is 15 per cent
or more of ASCL on that date, the NPLL will mean 60% of the incremental funds raised by the specified borrower over and above
its ASCL as on the reference date, in the financial years (FYs) succeeding the FY in which the reference date falls.
2) SCOPE: These guidelines will be applicable on all single counterparties of Scheduled Commercial Banks (SCBs) except other
SCBs, NBFCs registered with RBI, AIFIs (NHB, SIDBI, EXIM Bank and NABARD) and HFCs registered with NHB. Banks should apply
their due-diligence while deciding the NPLL for a single borrower in order that borrowers do not circumvent the cutoff ASCL
criteria by borrowing through dummy/fictitious group companies.
3) TIME FRAME: This will come into effect from the financial year 2017-18 onwards. The banking system shall ordinarily keep its
future incremental exposures to the specified borrowers within the NPLL, else they will be subject to the prudential measures as
detailed below.
4) PRUDENTIAL MEASURES: From 2017-18 onwards, incremental exposure of the banking system to a specified borrower beyond
NPLL shall be deemed to carry higher risk which shall be recognised by way of additional provisioning and higher risk weights as
under:
i) Additional provisions of 3 percentage points over and above the applicable provision on the incremental exposure of the
banking system in excess of NPLL, which shall be distributed in proportion to each bank’s funded exposure to the specified
borrower.
ii) Additional Risk weight of 75 percentage points over and above the applicable risk weight for the exposure to the specified
borrower. The resultant additional risk weighted exposure, in terms of risk weighted assets (RWA), shall be distributed in
proportion to each bank’s funded exposure to the specified borrower.
 STRATEGIC DEBT RESTRUCTURING
1) With a view to ensuring more stake of promoters in reviving stressed accounts and provide banks with enhanced capabilities
to initiate change of ownership in accounts which fail to achieve the projected viability milestones, banks may, at their
discretion, undertake a ‘Strategic Debt Restructuring (SDR)’ by converting loan dues to equity shares.
2) At the time of initial restructuring, the Joint Lender Forum (JLF) must incorporate, in the terms and conditions attached to the
restructured loans agreed with the borrower, an option to convert entire loan (including unpaid interest), or part thereof, into
shares so as to acquire majority shareholding in the company in the company in the event the borrower is not able to achieve
the viability milestones and/or adhere to ‘critical conditions’ as stipulated in the restructuring package:;
3) The decision on invoking the SDR by converting the whole or part of the loan into equity shares should be taken by the JLF as
early as possible but within 30 days from the above review of the account. Such decision should
be well documented and approved by the majority of the JLF members (minimum of 75% of creditors by value and 60% of
creditors by number;
4) In order to achieve the change in ownership, the lenders under the JLF should collectively become the majority shareholder by
conversion of their dues from the borrower into equity subject to the member banks’ respective total holdings in shares of
the Co conforming to the statutory limit in terms of Sec 19(2) of B.R. Act, 1949;
5) Post the conversion, all lenders under the JLF must collectively hold 51% or more of the equity shares issued by the company;
the share price for such conversion of debt into equity will be determined as per the method given by RBI.
6) The JLF must approve the SDR conversion package within 90 days from the date of deciding to undertake SDR. The conversion
of debt into equity as approved under the SDR should be completed within a period of 90 days from the date of approval of
the SDR package by the JLF.
7) On completion of conversion of debt to equity as approved under SDR, the existing asset classification of the account, as on
the reference date, will continue for a period of 18 months from the reference date. Thereafter, the asset classification will
be as per the extant IRAC norms, assuming the aforesaid ‘stand-still’ in asset classification had not been given.
8) JLF and lenders should divest their holdings in the equity of the company as soon as possible. On divestment of banks’ holding
in favour of a ‘new promoter’, the asset classification of the account may be upgraded to ‘Standard’. However, the quantum
of provision held by the bank against the said a/c as on the date of divestment, which shall not be less than what was held as
at the ‘reference date’, shall not be reversed.
9) Banks may reverse the provision held against the said account only when all the outstanding loan/facilities in the account
perform satisfactorily during the ‘specified period’, i.e. principal and interest on all facilities in the account are serviced as per
terms of payment during that period. In case, however, satisfactory performance during the specified period is not evidenced,
the asset classification of the restructured account would be governed by the extant IRAC norms as per the repayment schedule.
10)The asset classification benefit provided above, is subject to the conditions that the ‘new promoter’ should not be a person /
entity / subsidiary / associate etc. (domestic as well as overseas), from the existing promoter/promoter group. Banks should
clearly establish that the acquirer does not belong to the existing promoter group; and the new promoters should have
acquired at least 26 per cent of the paid up equity capital of the borrower company.
11)If the new promoter is a non-resident, and in sectors where the ceiling on foreign investment is less than 51 per cent, the new
promoter should own at least 26 per cent of the paid up equity capital or up to applicable foreign investment limit, whichever
is higher, provided banks are satisfied that with this equity stake the new non-resident promoter controls the management of
the company.
12) Equity shares acquired and held by banks under the scheme shall be exempt from the requirement of periodic mark-to-
market for the 18 month period.
13)According to the revised guidelines, banks can upgrade an asset to the standard asset category if they divest at least 26% of
the stake to the new promoter within the specified period of 18 months and the lenders would thus have the option to exit
their remaining holdings gradually, with upside as the company turns around.
 CENTRAL REPOSITORY OF INFORMATION ON LARGE CREDITS
With the slowdown of the Indian economy, a number of companies / projects are under stress. As a result, the Indian banking
system has seen increase in Non-Performing Assets (NPAs) and restructured accounts during the recent years. Not only do
financially distressed assets produce less than economically possible, they also deteriorate quickly in value. The basic purpose of
CRILC is to collect, store and disseminate large credit data to banks. The underlying objective of the creation of the CRILC is to
tackle the menace of rising NPAs in the Indian banking system.
 EARLY RECOGNITION OF STRESS AND SETTING UP OF CRILC:
Before a loan account turns into an NPA, banks are required to identify incipient stress in the account by creating a sub-asset
category viz. ‘Special Mention Accounts’ (SMA) into three sub-categories namely SMA-0, SMA-1 and SMA-2. RBI has set up the
CRILC to collect, store and disseminate data on all borrowers' credit exposures including Special Mention Accounts (SMA 0, 1 &
2) having aggregate fund-based and non-fund based exposure of Rs.50 million and above.
SMA BASIS FOR CLASSIFICATION
Sub- categories
Principal or interest payment not overdue for more than 30 days but account showing signs
SMA-0 of incipient stress.
SMA-1 Principal or interest payment overdue between 31-60 days.
SMA-2 Principal or interest payment overdue between 61-90 days.
IMPORTANTS POINTS
1) Banks will be required to report credit information, including classification of an a/c as SMA to CRILC on all their borrowers
having aggregate fund-based and non-fund based exposure of Rs.50 million (5cr) and above with them.
2) Banks are advised that as soon as an account is reported by any of the lenders to CRILC as SMA-2, they should mandatorily
form a committee to be called Joint Lenders’ Forum (JLF) if the aggregate exposure (AE) [fund based and non-fund based
taken together] of lenders in that account is Rs.1,000 million and above. Lenders also have the option of forming a JLF even
when the AE in an account is less than Rs.1000 million.
3) If the JLF decides to restructure an account independent of the CDR mechanism, JLF should carry out the detailed Techno-
Economic Viability (TEV) study, and if found viable, finalise the restructuring package within 30 days from the date of signing
off the final CAP ( corrective action plan).
4) For accounts with AE (aggregate exposure) of less than Rs.5000 (Rs 500 crore) million, the above-mentioned restructuring
package should be approved by the JLF and conveyed by the lenders to the borrower within the next 15 days for
implementation.
5)For accounts with AE of Rs.5,000 million (Rs 500 cr) and above, the above-mentioned TEV study and restructuring package will
have to be subjected to an evaluation by an Independent Evaluation Committee (IEC) of experts fulfilling certain eligibility
conditions. The IEC will look into the viability aspects after ensuring that the terms of restructuring are fair to the lenders.
The IEC will be required to give their recommendation in these cases to the JLF within a period of 30 days. Thereafter,
considering the views of IEC if the JLF decides to go ahead with the restructuring, the restructuring package including all
terms and conditions as mutually agreed upon between the lenders and borrower, would have to be approved by all the
lenders and communicated to the borrower within next 15 days for implementation.
6. FOREX
Evidence of Import under Import Data Processing and Monitoring System (IDPMS)
Extant guidelines of RBI outline the procedure, mode/manner of payment for imports and submission of related returns. According to
this procedure, Bill of Entry (BoE) data is received in IDPMS from Customs Department for EDI ports and from NSDL for SEZ on daily
basis. BoE data for non-EDI ports are entered by AD Category – I bank of the importer on receipt of BoE (importer’s copy) and then
the bank uploads the data in IDPMS through “Manual BOE reporting” process. In order to enhance ease of doing business and reduce
transaction costs, RBI decided (Jan 12) to discontinue submission of hardcopy of Evidence of Import documents i.e. BoE, with effect
from December 01, 2016, as it is available in IDPMS. The revised procedures are as set out below:
i. AD Category – I bank will enter BoE details (BoE number, port code and date) as received from the importer and download the BoE
message data from “BOE Master” in IDPMS. Thereafter, match and settle the BoE data with Outward Remittance Message (ORM)
associated with the payment for import as per the message format “BOE Settlement” in IDPMS. Multiple ORMs can be settled against
single BoE and also multiple BoE(s) can be settled against one ORM.
ii. In respect of imports on ‘Delivery against Acceptance’ basis, on request of importer, AD Category – I bank shall verify the
evidence of import from IDPMS at the time of effecting remittance of import bill.
iii. On settlement of ORM with evidence of import, AD Category – I bank shall in all cases issue an acknowledgement slip to the
importer containing the following particulars:
a. importer’s full name and address with code number ; b. number and date of BoE and the amount of import; and c. a recap advice
on number and amount of BoE and ORM not settled for the importer.
iv. The importer needs to preserve the printed ‘Importer copy’ of BoE as evidence of import and acknowledgement slip for future use.
The extant instructions and guidelines for Evidence of Import in Lieu of Bill of Entry will apply mutatis mutandis. The evidence of import
in lieu of BoE in permitted/ approved conditions will be created and uploaded by AD Category – I bank of the importer in the form of BoE
data as per message format “Manual BOE reporting” in IDPMS.
Follow-up for Evidence of Import : AD Category – I banks shall continue to follow up for outward remittance made for import (i.e.
unsettled ORM) in terms of extant guidelines and instructions on the subject. In cases where relevant evidence of import data is not
available in IDPMS on due dates against the ORM, AD Category – I bank shall follow up with the importer for submission of documentary
evidence of import. Similarly, if BoE data is not settled against ORM within the prescribed period AD Category – I banks shall follow up
with the importer in terms of extant instructions.
Verification and Preservation: Internal inspectors and IS auditors (including external auditors appointed by AD Category – I bank)
should carry out verification and IS audit and assurance of the “BOE Settlement” process in IDPMS. Data and process followed by AD
Category – I bank for “BOE Settlement” should be preserved in terms of the guidelines under Cyber Security Framework in the bank.
However, in respect of cases which are under investigation by investigating agencies, the data, process and/or documents may be
destroyed only after obtaining clearance from the investigating agency concerned.
Over-the-Counter Government Securities Transaction by Foreign Portfolio Investors (FPIs) – Settlement Period In terms of RBI
circular dated 20.03.15, Foreign Portfolio Investors (FPIs) are required to settle transactions in Government Securities in the Over-
the-Counter-(OTC) market on a T+2 basis. On 16.11.2017, RBI decided to permit FPIs to settle OTC secondary market transactions
in Government Securities either on T+1 or on T+2 basis. It may be ensured that all trades are reported on the trade date itself.
EDPMS - Issue of eBRC : As per circular dated 01.01.2016, related to As per RBI circular dated 01.01.2016, related to
implementation and operationalisation of Export Data Processing and Monitoring System (EDPMS) of RBI as also circular dated
28.07.14, reporting of data related to realisation of export proceeds i.e. ENC and Schedule 3 to 6 files was discontinued with
effect from the first fortnight of September 2014 after implementation of EDPMS. In terms of circrulated dated May 26, 2016,
banks were advised to carry out appropriate changes in their IT system / operating procedure immediately, report subsequent
export transactions in EDPMS and also capture the details of advance remittances (including old outstanding inward remittances)
received for exports in EDPMS.
AD Category-I banks have been directed by RBI on Sept 15, 2017, to update the EDPMS with data of export proceeds on “as and
when realised basis” and, with effect from October 16, 2017 generate Electronic Bank Realisation Certificate (eBRC) only from
the data available in EDPMS, to ensure consistency of data in EDPMS and consolidated eBRC.
Investment by Foreign Portfolio Investors (FPI) in Govt. Securities: Medium Term Framework Revision of Limits for the
quarter Oct-Dec 2017 On Sept 28, 2017, RBI increased the limits for investment by FPIs for the quarter October-December 2017
by INR 80 billion in Central Government Securities and INR 62 billion in State Development Loans. The revised limits are
allocated as per the framework modified by RBI on 03.07.17 is given as under.
Limits for FPI investment in Government Securities Existing limit : (Rs. in billion)
General Long Term Total Grand Total
Central Govt. 1877 543 2420
State Govts 285 46 331 2751
Limite for Quarter Dec 2017
Central Govt. 1897 603 2500
State Govts 300 93 393 2893
The revised limits will be effective from October 3, 2017.
Issuance of Rupee Denominated Bonds (RDBs) Overseas On Sept 22, 2017, RBI brought modification relating to issuance of
Rupee denominated bonds overseas under External Commercial Borrowings, Trade Credit, Borrowing and Lending in Foreign
Currency. In terms of the revision in consultation with the Government of India, the amount of issuances of RDBs from the limit
for investments by FPIs in corporate bonds with effect from October 3, 2017 is to be excluded. Consequently, reporting
requirement in the form of additional email for RDB transactions for onward reporting to
Investment by Foreign Portfolio Investors in Corporate Debt Securities – Review Currently, the limit for investment by Foreign
Portfolio Investors (FPIs) in corporate bonds is Rs. 244,323 crore. This includes issuance of Rupee denominated bonds overseas
(Masala Bonds) by resident entities of Rs. 44,001 crore (including pipeline). The Masala Bonds are presently reckoned both under
Combined Corporate Debt Limit (CCDL) for FPI and External Commercial Borrowings (ECBs).
On a review and to further harmonise norms for Masala Bonds issuance with the ECB guidelines, RBI made the following changes
on Sept 22, 2017:
1. With effect from October 3, 2017, Masala bonds will no longer form a part of the limit for FPI investments in corporate bonds.
They will form a part of the ECBs and will be monitored accordingly. Eligible Indian entities proposing to issue Masala Bonds may
approach Foreign Exchange Department, Reserve Bank of India, Central Office, Mumbai.
2. The amount of Rs.44,001 crore arising from shifting of Masala bonds will be released for FPI investment in corporate bonds
over the next two quarters as specified hereunder:
Limit for FPI Investments in Corporate Bonds Amount( Rs.crore)
1. Current FPI limits for corporate bonds (including masala bonds) : 2,44,323
(a) of which Masala bonds (including pipeline): 44,001
2. FPI limit after shifting Masala bonds to ECB (1-(a)) : 2,00,322
3. Additional limit for Q3 FY18 : 27,000
4. FPI limit for corporate bonds from 03 Oct 2017 (2+3) : 2,27,322
(of which reserved for investment by long term FPIs in infrastructure : 9,500)
5. Additional limit for Q4 FY18 : 17,001
FPI limit for corporate bonds from January 01, 2018 (4+5) : 2,44,323 (of which reserved for investment by long term
Foreign Direct Investment (FDI-LLP) in Limited Liability Partnerships (LLP)
RBI notified the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident
outside India) (2nd Amendment) Regulations, 2017 on 03.03.2017, relating to Foreign Direct Investment (FDILIP) in Limited Liability Partnerships
(LIP). The summary is provided.
1. Eligible Investors: A person resident outside India or an entity incorporated outside India (other than in
Pakistan or Bangladesh), not being a Foreign Portfolio
Investor or Foreign Institutional Investor or Foreign Venture Capital Investor registered as per SEBI
guidelines, may contribute foreign capital by way of capital contribution or acquisition / transfer of profit shares in the capital structure of an LLP.
2. Eligible investment : Contribution to the capital would be an eligible investment. The investment by way of `profit share' will fall under the category of
reinvestment of earnings
3. Eligibility of a LLP : FDI is permitted, subject to following conditions;
a) FDI is permitted under the automatic route in LLPs operating in sectors where 100% FDI is allowed through the automatic route.
b) An Indian company or an LLP, having foreign investment, will be permitted to make downstream
investment in another company or LP engaged in sectors in which 100% FDI is allowed under the automatic route. Onus shall be on the Indian
company / LLP accepting downstream in estment to ensure compliance with the above conditions.
c) A company having foreign nvestment can be converted into an LIP under the automatic route only if it is engaged in a sector where foreign
investment up to 100% is permitted under automatic route.
4. Pricing : FDI by way of capital contribution or by way of acquisition / transfer of profit shares, would have to
be more than or equal to the fair price as worked out
with internationally accepted / adopted norms as per market practice and a valuation certificate to that effect
shall be issued by the Chartered Accountant or Cost Accountant or byan approved valuer from the panel maintained by the Central Government.
In case of transfer of capital contribution / profit share from a resident to a non-resident, the transfer shall be for a consideration equal to or
more than the fair price of capital contribution / profit share of an LLP. Further, in case of transfer of capital contribution / profit
share from a non-resident to resident, the transfer shall be for a consideration which is less than or equal to the fair price of the
capital contribution / profit share of an LLP.
5. Mode of payment : Payment shall be made:
(i) by way of inward remittance through banking channels; or
(ii) by debit to NRE / FCNR(B) account of the person concerned, with an AD - I bank in accordance with Foreign Exchange
Management (Deposit) Regulations, 2016, as amended from time to time.
6. Reporting : (i) Reporting of investment in LLPs and disinvestment/transfer of capital contribution or profit shares between a
resident and a non-resident may be made in a manner as prescribed by RBI.
(ii) All LLPs having received FDI in previous year(s) including the current year, shall submit to RBI, by 15th day of July of each
year, a report titled 'Annual Return on Foreign Liabilities and Assets' as specified by RBI.
FOREIGN TRADE POLICY 2015-20 (MID-TERM REVIEW)
The Union Commerce and Industry Minister unveiled the Mid-Term Review of Foreign Trade Policy 2015-20 by announcing a
slew of incentives to boost country's exports. BACKGROUND:
˜ The five-year FTP was announced on April 1, 2015, and set an ambitious target of India's goods and services exports at $900
billion by 2020. It also has a goal of increasing India's share of world exports to 3.5 per cent from 2 per cent.
˜ India’s external trade performance has grown to be so acute that the current account deficit in the first-quarter of the current
fiscal year reached a four-year high of 2.6 percent. This trend is continuing despite favourable trade conditions in the global
markets. Only domestic factors can explain the widening trade deficit. Clearly, the uncertainty surrounding the implementation
of the Goods and Services Tax (GST) has had a major role to play.
˜ Exports, meanwhile, declined from $468 billion to $437 billion between 2014-15 and 2016-17.
˜ According to World Bank (WB) data, no country in history has sustained a growth rate of seven per cent without an export
growth of 15 per cent or more. However, Indian export growth of goods and services has not even crossed 10 per cent since
2011. Therefore, there seem to be larger structural issues at work that are impeding the growth of India’s external sector.
˜ A common argument made to improve India’s trade competitiveness is that the rupee is strong and needs to be depreciated to
make exports competitive in the world markets. However, this argument does not hold good in the face of recent trends in
both the exchange rate and the real effective exchange rate over the last few months.
MID-TERM REVIEW OF THE FOREIGN TRADE POLICY : The Govt. has released the mid-term review of the Foreign Trade Policy
(FTP), with the focus expected to be on policy measures to boost the exports of goods and services and to increase employment
generation and value-addition in the country. FTP is a dynamic document and regular changes are made to increase value
addition in the country, generate more employment and boost exports.
 The mid-term review of FTP is aimed at mid-course correction. It was to be announced on July 1, together with the
implementation of the GST regime. But the announcement was postponed to take into account
 feedback from export sector regarding GST related issues. In a massive relief to Indian exporters, the government announced
liberal incentives of Rs.8,450 crore ($1.3 billion) in its mid-term review of the five-year foreign trade policy that was rolled out
in 2015. The increase in annual incentive by 34 per cent to Rs.8,450 crore will benefit leather, handicraft, carpets, sports
goods, agriculture, marine, electronic components and project exports. The FTP would focus on micro, small and medium
enterprises, labour-intensive segments and agriculture sector.
 FTP will also focus on 'Ease of Trading' across borders. A professional team will handhold, assist and support exporters in their
export related problems, accessing export markets, meeting regulatory requirements.
 Mid-term review of Foreign Trade Policy will focus on finding new markets and new products as well as increasing India's
share in the traditional markets and products. To achieve Prime Minister vision of doubling farmers' incomes by 2022, FTP
will have a focused policy for agricultural exports.
 Incentives for goods exports is Rs. 4,567 crore, and for services exports is Rs. 1,140 crore. This is in addition to the recently
announced incentives to ready-made garments.
 The Merchandise Exports from India Scheme (MEIS) incentive rate will be raised by 2 per cent across the board for labour
intensive / MSME sectors. Services exports from India Scheme (SEIS) incentives for sectors such as education, health,
hospitality, business, legal, accounting, architectural, engineering to be increased by 2 per cent.
 Trade accounts for 45% of the country's GDP. FTP incentives now cover 8,000 of the total 12,000 lines of items. Of these
incentives, Rs.749 cr for leather and footwear, Rs.1354 cr for agriculture and related items, Rs.759 cr for marine exports,
Rs.369 cr for telecom and electronic items, Rs.921 cr for handmade carpets, Rs.193 cr for medical and surgical equipments,
Rs.1140 cr for textiles and ready made garments.
 A new Logistics Division has also been created in Department of Commerce for integrated development of the logistics
sector. The move is likely to positively impact exports by lowering transaction cost, increasing speed and ease of goods
movement, improving Logistics Performance Index.
 A new trade data analytics division under the Directorate General of Foreign Trade will analyse real time data to help fine tune
policy.
 Self-certification scheme for duty-free imports.
 MEIS incentives for two sub-sectors of textiles - ready-made garments and made-ups - have already been increased to 4 per
cent from 2 per cent, with an additional annual incentive of Rs.2,743 crore.
 Validity period of Duty Free Credit Scrips has already been increased from 18 to 24 months to enhance their utility in the GST
framework. GST rate on sale/transfer of scrips has been reduced to zero.
 The introduction of the new tax regime would be the catalyst for spurring growth in the export sector. The lower duty on most
of items and reduction of cascading effect of various duties would lower the cost and make exports competitive.
 The government also said that support to Export Credit Guarantee Corporation will be enhanced to provide increased
insurance cover to exporters particularly MSMEs exploring new or difficult markets.
 Further, to give a fillip to services trade, the policy has raised the Service Exports from India Scheme by two per cent,
envisaging an additional outgo of Rs.1,140 crore. Last month, the Commerce Ministry announced a similar two per cent
additional incentive for garments and made-ups.
 The FTP also sought to establish an Export Promotion Mission to provide an institutional framework to work with State
Governments to boost India's exports. The government also aimed to promote and boost export of defence goods. Besides, an
e-wallet system to address the liquidity problem being faced by exporters is likely to be operational from April 01, 2018. The
government has expressed hope that the GST would help to push exports growth.
 HIKE IN FPIs INVESTMENT LIMITS: The RBI has announced the hike in foreign portfolio investors’ (FPIs) investment limits in
central government securities (G-Secs) by Rs 6,400 crore beginning January 1, taking the total limit to Rs 2.56 lakh crore. Of
this, the general category FPIs will get an additional limit of Rs.1,600 crore while long term FPIs will get an additional limit of
Rs.4,800 crore. At the same time, the central bank has also hiked the FPI investment limits in state development loans (SDLs)
by Rs 5,800 crore taking the total limit to Rs.45,100 crore. Of this, a limit of Rs 1,500 crore has been reserved for general
category FPIs while long term FPIs will get an additional limit of Rs 4,300 crore.
The RBI on January 25, 2017, prohibited an Indian party from making direct investment in an overseas entity, set up or acquired
abroad directly as Joint Venture / Wholly Owned Subsidiary or indirectly as step down subsidiary located in the countries
identified by the FATF as ‘non co-operative countries and territories’.
˜ In order to provide more choices of investors to Indian entities issuing Rupee denominated bonds abroad, the Reserve Bank on
February 16, 2017, permitted multilateral and regional financial institutions (FIs) where India is a member country, to invest in
Rupee denominated bonds.
MONEY TRANSFER SERVICE SCHEME (MTSS): The Reserve Bank on February 24, 2017, issued master directions relating to Money
Transfer Service Scheme (MTSS). Money Transfer Service Scheme (MTSS), which is a quick and easy way of transferring personal
remittances from abroad to beneficiaries in India. MTSS can be used for inward personal remittances into India, such as,
remittances towards family maintenance and remittances favouring foreign tourists visiting India and not for outward remittance
from India. a)The applicant to become an Indian Agent should be an Authorised Dealer Category-I bank or an Authorised Dealer
Category-II or a Full Fledged Money Changer (FFMC), or a Scheduled Commercial Bank or the Department of Posts b)The applicant
should have minimum NOF of Rs. 50 lakh.
 EDPMS: The Reserve Bank on September 15, 2017, directed Authorised Dealer (AD) Category-I banks to update the Export
Data Processing and Monitoring System (EDPMS) with data of export proceeds on ‘as and when realised basis’ and with effect
from October 16, 2017, generate Electronic Bank Realisation Certificate (eBRC) only from the data available in EDPMS, to ensure
consistency of data in EDPMS and consolidated eBRC.
 STATUS HOLDERS: Government of India vide amendment has notified that the Status Holders shall be entitled to export freely
exportable items on free of cost basis for export promotion subject to an annual limit of Rs. 10 lakh or 2% of average annual
export realization during preceding three licensing years whichever is lower.
 ACQUISITION & TRANSFER OF IMMOVABLE PROPERTY:
A) PERSON RESIDENT IN INDIA: The RBI has advised AD banks that acquisition or transfer of any immovable property outside
India by a person resident in India would require prior approval of Reserve Bank with few exceptions like, Property held outside
India by a foreign citizen resident in India; Property acquired by a person on or before July 8, 1947 and held with the permission
of Reserve Bank; Property acquired by way of gift or inheritance from specified persons; Property purchased out of funds held in
Resident Foreign Currency (RFC) account held in accordance with the Foreign Exchange Management (Foreign Currency
Accounts by a person resident in India) Regulations, 2015; etc.
INDIAN COMPANY: An Indian company having overseas offices may acquire immovable property outside India for its business
and residential purposes provided total remittances do not exceed the following limits prescribed for initial and recurring
expenses, respectively: a)15 per cent of the average annual sales / income or turnover of the Indian entity during the last two
financial years or up to 25 per cent of the net worth, whichever is higher;
b)10 per cent of the average annual sales/ income or turnover during the last two financial years.
 P O S S E S S I O N & R E T E N T I O N O F F O R E I G N CURRENCY:
A) The RBI has advised AD Banks on the limits for possession or retention of foreign currency or foreign coins, as under:
a) Possession without limit of foreign currency and coins by an authorised person within the scope of his authority;
b) Possession without limit of foreign coins by any person;
c) Retention by a person resident in India of foreign currency notes, bank notes and foreign currency travellers’ cheques not
exceeding US$ 2000 or its equivalent in aggregate, provided that such foreign exchange was acquired by him:
 While on a visit to any place outside India by way of payment for services not arising from any business in or anything done in
India; or
 From any person not resident in India and who is on a visit to India, as honorarium or gift or for services rendered or in
settlement of any lawful obligation; or
 Represents unspent amount of foreign exchange acquired by him from an authorised person for travel abroad.
B) RBI also advised that a person resident in India but not permanently resident therein may possess without limit foreign currency
in form of currency notes, bank notes and travellers cheques, if such foreign currency was acquired, held or owned by him when
he was resident outside India and, has been brought into India in accordance with the regulations made under the Act.
 SETTLEMENT OF EXPORT / IMPORT TRANSACTIONS IN CURRENCIES NOT HAVING A DIRECT EXCHANGE RATE: To further
liberalize the procedure and facilitate settlement of export and import transactions where the invoicing is in a freely
convertible currency, RBI has decided that AD Category-I banks may permit settlement of such export and import
transactions (excluding those put through the ACU mechanism), subject to conditions as under:
a) Exporter / Importer shall be a customer of the AD Bank.
b) Signed contract / invoice is in a freely convertible currency.
c) The beneficiary is willing to receive the payment in the currency of beneficiary instead of the original (freely convertible)
currency of the invoice / contract / Letter of Credit as full and final settlement.
d) AD bank is satisfied with the bonafides of the transactions;
e) The counterparty to the exporter / importer of the AD bank is not from a country or jurisdiction in the updated FATF Public
Statement on High Risk & Non Co-operative Jurisdictions on which FATF has called for counter measures.
EXTERNAL COMMERCIAL BORROWINGS (ECB):
RBI has decided to make the following changes in the ECB framework:
a) Companies in Infrastructure sector, Non-Banking Financial Companies Infrastructure Finance Companies (NBFC-IFCs), NBFCs-
Asset Finance Companies (NBFC-AFCs), Holding Companies and Core Investment Companies (CICs) will also be eligible to raise
ECB under Track I of the framework with minimum average maturity period of 5 years, subject to 100 per cent hedging.
b) Companies in Infrastructure sector shall utilize the ECB proceeds raised under Track I for the end uses permitted for this
Track. NBFCs-IFCs and NBFCs-AFCs will, however, be allowed to raise ECB only for financing infrastructure.
i)Holding Companies and CICs shall use ECB proceeds only for on-lending to infrastructure Special Purpose Vehicles (SPVs).
ii)The individual limit of borrowing under the automatic route for aforesaid companies shall be as applicable to the companies in
the Infrastructure sector (currently USD 750 million).
iii)Companies in infrastructure sector, Holding Companies and CICs will continue to have the facility of raising ECB under Track II
of the ECB framework subject to the prescribed conditionalities.
On the ECB framework, RBI has further clarified that:
a) The designated AD Category-I banks may, under the powers delegated to them, allow refinancing of ECBs raised under the
previous ECB framework, provided the refinancing is at lower all-in-cost, the borrower is eligible to raise ECB under the extant
ECB framework and residual maturity is not reduced (i.e. it is either maintained or elongated).
b) ECB framework is not applicable in respect of the investment in Non-convertible Debentures (NCDs) in India made by
Registered Foreign Portfolio Investors (RFPIs).
c) Minimum average maturity of Foreign Currency Convertible Bonds (FCCBs)/ Foreign Currency Exchangeable Bonds (FCEBs) is 5
years irrespective of the amount of borrowing. Further, the call and put option, if any, for FCCBs shall not be exercisable prior
to 5 years.
 FOREIGN DIRECT INVESTMENT (FDI) IN INDIA : The extant FDI policy for Insurance sector has since been reviewed by the
Govt. of India and enhanced the limit of foreign investment in insurance sector from 26 to 49 percent under the automatic
route covering Insurance Co, Insurance Brokers, Third Party Administrators’ Surveyors and Loss Assessors.
 ESTABLISHMENT IN INDIA OF A BRANCH OFFICE OR LIAISON OFFICE OR A PROJECT OFFICE
A) Prohibition against opening a branch office or a liaison office or a project office or any other place of business in India: No
person resident outside India shall without prior approval of the RBI open in India a branch office or a liaison office or a project
office or any other place of business by whatever name called except as laid down in these Regulations:
Provided that
a) A banking company resident outside India; b)An insurance company resident outside India;
c) A company resident outside India shall not require any approval under these Regulations to establish a branch office in the Special
Economic Zones to undertake manufacturing and service activities, subject to the conditions that such branch offices are functioning
in those sectors where 100% FDI is permitted.
B) Approval for opening a branch office or a liaison office or a project office or any other place of business in India:
a) A person resident outside India can establish a branch office or a liaison office in India provided it meets the following:
i) For Branch Office - a profit making track record during the immediately preceding five financial years in the home country and
net worth of not less than USD 100,000 or its equivalent.
ii) For Liaison Office - a profit making track record during the immediately preceding three financial years in the home country
and net worth of not less than USD 50,000 or its equivalent.
 GRANT OF EDF WAIVER FOR EXPORT OF GOODS:
* Government of India vide amendment has notified that the Status Holders shall be entitled to export freely exportable items on
free of cost basis for export promotion subject to an annual limit of Rs.10 lakh or 2% of average annual export realization during
preceding three licensing years whichever is lower.
* The Reserve Bank on August 25, 2016 clarified that in cases where a derivative contract is restructured, the mark-to-market
value of the contract on the date of restructuring should be cash settled.
* The Reserve Bank has permitted banks to raise funds through issuance of rupee denominated bonds overseas for the various
specified purposes.
* The Reserve Bank on April 21, 2016 has decided, in consultation with the Government of India, to allow foreign investment in
the units of Investment Vehicles registered and regulated by SEBI or any other competent authority.
* The Reserve Bank on October 6, 2016 advised all category-I authorised dealer (AD) banks that Import Data Processing and
Monitoring System (IDPMS) would go live with effect from October 10, 2016, used for reporting and monitoring of the import
transactions.
 ECBs BY STARTUPS:
* With a view to boosting innovation and promoting job creation, the Reserve Bank of India has permitted Startups to raise
external commercial borrowings (ECBs) of up to $3 million in a financial year under ECB framework The minimum average
maturity period will be 3 years. Lender / investor shall be a resident of a country who is either a member of Financial Action Task
Force (FATF) or a member of a FATF-Style Regional Bodies. The borrowing should be denominated in any freely convertible
currency or in Indian Rupees (INR) or a combination thereof. In case of borrowing in INR, the non-resident lender, should mobilise
INR through swaps/outright sale undertaken through an AD Category-I bank in India.
* Startups raising ECB in foreign currency, whether having natural hedge or not, are exposed to currency risk due to exchange rate
movements and hence are advised to ensure that they have an appropriate risk management policy to manage potential risk
arising out of ECBs.
 FOREIGN INVESTMENT IN OTHER FINANCIAL SERVICES: The Reserve Bank has advised to allow foreign investment up to 100
per cent under the automatic route in ‘Other Financial Services’. Other Financial Services will include activities which are
regulated by any financial sector regulator such as RBI, SEBI, IRDAI, PFRDA, NHB or any other financial sector regulator as may
be notified by the Govt. Such foreign investment shall be subject to conditionalities, including minimum capitalisation norms,
as specified by the concerned Regulator/ Government Agency.
 FOREIGN VENTURE CAPITAL INVESTOR (FVCI): In order to further liberalise and rationalise the investment regime for Foreign
Venture Capital Investor (FVCI), any FVCI which has obtained registration under the SEBI Regulations, 2000, will not require any
approval from RBI and can invest in Equity or equity linked instrument or debt instrument issued by an Indian ‘start-up’
irrespective of the sector in which the start-up is engaged. A startup will mean an entity (private limited company or a registered
partnership firm or a limited liability partnership) incorporated or registered in India not prior to five years, with an annual
turnover not exceeding INR 25 crores in any preceding financial year, working towards innovation, development, deployment or
commercialization of new products, processes or services driven by technology or intellectual property & satisfying stipulated
conditions.
 FDIs IN CIC: The Reserve Bank has revised its directions allowing higher Foreign Direct Investment (FDI) limits in Credit
Information Companies (CICs) to entities which have an established track record of running a Credit Information Bureau in a well
regulated environment, as under:
a) Up to 49% if ownership of the investor company is not well diversified;
b) Up to 100 per cent if ownership of investor company is well diversified, or if not well diversified, subject to conditions
relating to composition of the Board of Directors of the investee CIC.
c) Investment of Foreign Institutional Investors (FII)/Foreign Portfolio Investors (FPI) should directly or indirectly hold below 10
per cent equity.
The Reserve Bank on February 15, 2016, revised the foreign investment limits in CICs from 74 per cent to 100 per cent under
automatic route.
PARTICIPATION IN CURRENCY FUTURES MARKET
RBI has decided to permit stand-alone Primary Dealers (PDs) to deal in currency futures contracts traded on recognized exchanges
subject to the following conditions:
Eligibility:
a) Exposure to currency futures will be treated as a non- core activity for PDs and only PDs having a minimum Net Owned Fund of
Rs.250 crore or any amount as prescribed for undertaking diversified activity will be allowed to participate in currency futures.
b)As prescribed in the existing guidelines on capital adequacy standards, the capital charge for market risk for the non-core
Position Limits: PDs are permitted to take long and short positions in the currency futures market with or without having an
underlying exposure subject to the position limits specified by the exchanges. However, the aggregate gross open positions across
all contracts in all the stock exchanges in the respective currency pairs shall not exceed the limits prescribed by RBI.
7. Digital Banking
Issuance and Operations of Prepaid Payment Instruments
In order to facilitate greater adoption of digital payments, the extant instructions have been partially modified by RBI (Dec 27,
2016) as under:
1. Banks may extend the provisions to include other entities / ‘employers’ such as unlisted corporates / partnership firms / sole
proprietorship / public organizations like municipal corporations, urban local bodies, etc. (employers) for onward issuance to their
staff / employees / contract workers, etc.
2. Banks shall extend this facility only to those entities / ‘employers’ that have a bank account with them and after obtaining an
undertaking that they are not availing of this facility from any other bank.
3. Verification of the identity of the staff / employees / contract workers, etc. shall be the responsibility of the concerned ‘employer’. The
bank should put in place proper systems to capture and maintain details of the employees to whom the cards are issued by the
‘employer’ along with copies of photograph and identity proof of such employees. The ‘employer’ is also required to make available
details of bank accounts (if any) of the employees to the bank.
4. Banks shall load/reload PPIs after obtaining necessary authorisation and above mentioned details of the employees/staff/contract
workers, etc. from the ‘employers’.
Who can hold International Credit or Debit Cards
AD Banks can issue International Debit Cards (IDCs) which can be used by a resident individual for drawing cash or making
payment to a merchant establishment overseas, during his visit abroad. IDCs can be used only for permissible current account
transactions within the LRS limit.
AD banks can also issue Store Value Card/Charge Card/Smart Card to residents traveling on private/business visit abroad for making
payments at overseas merchant establishments and also for drawing cash from ATM terminals. No prior permission from RBI is
required for issue of such cards. The use is limited to permissible current account transactions and subject to the LRS limit.
Resident individuals maintaining a foreign currency (FC) account with an AD banks or a bank abroad, as permissible under extant
Foreign Exchange Regulations, can obtain International Credit Cards (ICCs) issued by overseas banks and other reputed agencies. The
charges incurred against the card either in India or abroad, can be met out of funds held in such FC account of card holder or through
remittances, if any, from India only through a bank where the cardholder has a current or savings account. The remittance for this
purpose, should also be made directly to the card-issuing agency abroad, and not to a third party. The applicable credit limit will be
the limit fixed by the card issuing banks. There is no monetary ceiling fixed by the RBI for remittances, if any, under this facility. The
LRS limit shall not apply to the use of ICC for making payment by a person towards meeting expenses while such person is on a visit
outside India.
Use of ICCs/ IDCs can be made for travel abroad in connection with various purposes and for making personal payments like
subscription to foreign journals, internet subscription, etc. Use of ICCs/IDCs is NOT permitted for prohibited transactions such as
purchase of lottery tickets, banned magazines etc. or for payment in foreign exchange in Nepal and Bhutan is not permitted.
depositories has been dispensed with. However, it should be noted that the reporting of RDBs will continue as per the extant ECB
norms.
Core Banking Solution (CBS) Requirements for Urban Co-operative Banks (UCBs)
As per circular dated 13.04.16, RBI had circulated Scheme for providing financial assistance to urban co-operative banks for
implementation of Core Banking Solution (CBS).As stated therein, a document dealing with the functional and technical
requirements for Core Banking Solution in Urban Cooperative Banks has been prepared by the Institute for Development and
Research in Banking Technology (IDRBT) in consultation with the Reserve Bank. The document can be accessed at the IDRBT
website. The document is expected to serve as a reference material for implementing and improving CBS in the banks.
NEFT : Half-hourly settlement : NEFT system presently settles funds transfer requests of the participating banks on net basis at
hourly intervals from 8:00 am to 7:00 pm on all working days. All participating banks are required to give the credit to the
beneficiary customer only after the inter-bank settlement has been completed and the End-of-Batch (EOB) message is received by
them. Additional settlements in the NEFT system at half-hour intervals have been introduced by RBI, to enhance the efficiency of
the system and ad(' to customer convenience. The half hourly settlements would speed up the funds transfer process and provide
faster credit to the destination accounts.
Accordingly, with effect from July 17, 2017, RBI decided (013.05.17) under Payment and Settlement Systems Act 2007, to introduce
11 additional settlement batches during the day (at 8.30 am, 9.30 am, 10.30 am ... 5.30 pm and 6.30 pm), taking the total number of
half hourly settlement batches during the day to 23.
The starting batch at 8.00 am and closing batch at 7.00 pm shall remain the same as hitherto. The return discipline shall also
remain the same i.e., B+2 hours (Settlement batch time plus two hours) as per extant practice.
The participating banks have been advised to carry out the required changes in their CBS system to initiate the NEFT transactions
for half hourly settlement as above, and also to accept and credit the inward NEFT transactions on half hourly basis. IDRBT/IFTAS
will communicate the technical changes required to be carried out by participating banks and provide required support in
implementing the same. Banks shall accordingly ensure their readiness in terms of technical and operational aspects. Further, on
05.02.10, for efficient customer service, the participant banks in NEFT system were advised to send a positive confirmation to the
remittance originator (customer) confirming the successful credit of funds to the beneficiary's account. The beneficiary /
destination banks should ensure strict adherence in sending the N10 messages to the originating banks, which in turn shall
ensure sending the positive confirmation to the remitting customer advising status of credit to the beneficiary account.
 GOVT. TO REIMBURSE THE MDR ON DIGITAL TRANSACTIONS UP TO Rs.2,000/-:
 In a major push towards making India a less-cash economy, the union cabinet has decided to bear the merchant discount rate
(MDR) applicable on digital payments via debit cards, etc., up to Rs. 2,000 for the next two years. This will be applicable on
transactions done using debit cards, UPI BHIM application or Aadhaar. The decision, cleared by the Cabinet, is expected to cost the
exchequer more than Rs. 2,500 crore.
 MDR is the fee that the merchant accepting the card has to pay to the bank when the customer swipe it for payments. The
MDR compensates the bank issuing the card, the bank which puts up the swiping machine (Point-of-Sale or PoS terminal) and
network providers such as Mastercard or Visa for their services.
 As per government’s estimates, the total MDR to be reimbursed to the banks in respect of transactions worth less than Rs.2,000
in value would be Rs.1,050 crore in FY 2018-19 and Rs.1,462 crore in FY 2019-20.
 Digital transaction below Rs.2,000 account for about 15-20% of the payments in terms of value. In volume terms, it was much
higher.The decision of the government’s will facilitate the aim to grow India’s digital economy to $1 trillion by 2022.
 With effect from January 1 2018, small merchants will pay a maximum MDR of 0.40 per cent of the bill value and others will shell
out 0.90 per cent. To prevent those MDR charges from sky-rocketing, RBI has also set a monetary cap at Rs.200 per bill for small
merchants and Rs.1,000 for large ones.
MERCHANT DISCOUNT RATE (MDR) FOR DEBIT CARD: Taking into account the twin objectives of promoting debit card
acceptance by a wider set of merchants, especially small merchants, and ensuring sustainability of the business for the entities
involved, RBI has decided to rationalise the MDR for debit cards based on the following criteria:
a) Categorisation of merchants on the basis of turnover.
b) Adoption of a differentiated MDR for QR-code based transactions.
c) Specifying a ceiling on the maximum permissible MDR for both ‘card present’ and ‘card not present’ transactions.
Accordingly, the maximum MDR for debit card transactions shall be as under:
Rationalization ofMerchantDiscountRates(MDR) for DebitCard Transactions
RBI had specified the maximum MDR applicable to debit card transactions on 28.06.12 and 16.12.2016.
Merchant Discount Rate (MDR) for debit card transactions
(as a % of transaction value)
Sr. No Physical POS infrastructure

Merchant Category including online card QR code-based card acceptance
transactions infrastructure
1 . Smallmerchants (with turnoverupto Notexceeding 0.40% (MDR Not exceeding 0.30% (MDR cap
Rs.20 lakh during the previous cap of Rs. 200 per transaction) of Rs.200 per transaction)
financial year)
2 . Other merchants Not exceeding Notexceeding 0.80% (MDR cap of Rs.
(with turnover above Rs.20 lakh during 0.90% (MDR 1000per transaction)
the previous financial year) cap of Rs. 1000 per transaction)
Based on consultations with stakeholders on the “Draft Circular - Rationalisation of Merchant Discount Rate (MDR) for Debit Card
Transactions”, as also taking into account the twin objectives of promoting debit card acceptance by a wider set of merchants, especially
small merchants, and ensuring sustainability of the business for the entities involved, RBI decided (06.12.2017) to rationalise the MDR
for debit cards based on the following criteria:
1. Categorisation of merchants on the basis of turnover.
2. Adoption of a differentiated MDR for QR-code based transactions.
3. Specifying a ceiling on the maximum permissible MDR for both ‘card present’ and ‘card not present’ transactions.
4. Accordingly, with effect from Jan 01, 2018, the maximum MDR (as % of transaction value) for debit card transactions shall
be: a) Small merchants (turnover upto Rs.20 lakh during the previous financial year), b) Physical POS infrastructure including online card
transactions : maximum 0.40% (MDR cap of Rs.200 per transaction)
QR code-based card acceptance infrastructure: Not exceeding 0.30% (MDR cap of Rs.200 per transaction)
a) Other merchants (turnover above 20 lakh during the previous financial year) Physical POS infrastructure including online card
transactions : maximum 0.90% (MDR cap of Rs. 1000 per transaction)
QR code-based card acceptance infrastructure: Not exceeding 0.80% (MDR cap of Rs. 1000 per transaction)
Banks have been advised to ensure that merchants on-boarded by them do not pass on MDR charges to customers while accepting
payments through debit cards.
UIDAI - INSTALL FINGERPRINT & IRIS SCANNERS: Unique Identification Authority of India (UIDAI) have asked banks to install
fingerprint and iris scanners in 10% of their branches to expedite Aadhaar enrollment mainly for those seeking to open new
bank accounts. The Supreme Court has extended till March 31, 2018, the deadline for mandatory linking of the biometric
identifier with various services and welfare schemes. The apex court has also said that new bank accounts can be opened
without Aadhaar but applicants need to submit proof that he has applied for the 12-digit identification number. So far, more
than 3,000 enrollment centres have already been set up in bank branches all over the country and overall they have to set up
(enrollment facility) in 14,000 bank branches.
PAYMENT AND SETTLEMENT SYSTEMS : In order to facilitate cash availability for White Label ATM Operators (WLAOs), the
Reserve Bank on December 30, 2016, allowed them to source cash from retail outlets. The Reserve Bank on May 8, 2017,
introduced additional settlements in the National Electronic Funds Transfer (NEFT) system at half-hour intervals. The Reserve
Bank on October 11, 2017, issued the Master Directions on Issuance and Operation of Pre-paid Payment Instruments (PPIs) in
India. The RBI on December 5, 2017, clarified that no licence / authorisation was given to any entity / company to operate such
schemes or deal with Bitcoin or any Virtual Currencies.
 WHITE LABEL ATM OPERATORS (WLAOs):
Following the withdrawal of legal tender characteristics of existing Rs. 500/- and Rs.1000/- Bank Notes, RBI has decided to allow
WLAOs to source cash from retail outlets subject to following conditions:
a) WLAOs shall be solely responsible for the quality and genuineness of currency notes dispensed through their ATMs. Only ATM
fit notes shall be used for this purpose.
b) WLAOs may enter into bilateral arrangement with retail outlets from where they desire to source cash based on their Board
approved policy.
c) Liability and disputes, if any, arising out of such arrangements shall be the responsibility of WLAOs,
d) WLAOs shall be responsible for resolving customer disputes and shall make good any loss caused to a customer including those
on a/c of fake notes.
e) 60% of the cash sourced using such arrangement(s) shall be dispensed through WLAs located in rural and semi-urban areas.
*PENALTY ON PAYMENT SYSTEMS OPERATORS / BANKS: The RBI has prescribed penalty / fine under Section 30 of the PSS Act
and compounding of contraventions / offences under Section 31 of the PSS Act.
The amount of penalty/fine for the various payment system operators / banks would be based on the nature of
contravention/offences with a minimum penalty of Rs.5 lakh. Where the contravention / violation is not quantifiable, a penalty
of minimum Rs.5 lakh with a maximum of Rs.1 crore would be levied. The entities, on whom penalty / fine has been levied,
shall disclose the penalties/fines in their Annual Financial Statements for the year in which the penalty is levied. Reserve Bank
shall also make the penalty levied public by disclosing the same on its website.
 AADHAAR-BASED AUTHENTICATION FOR CARD PRESENT TRANSACTIONS:
* As per the extant guidelines, banks were advised that all new card present infrastructure has to be enabled for both EMV Chip
and PIN and Aadhaar (biometric validation) acceptance.
* With the substantial increase in number of Aadhaar card holders in the country, RBI has advised banks to ensure that all new
card acceptance infrastructure deployed with effect from Jan. 1, 2017 are enabled for processing payment transactions using
Aadhaar-based biometric authentication also.
 MERCHANT DISCOUNT RATES (MDR): In order to bring greater transparency in Merchant Discount Rates (MDR) applicable at
merchant level, RBI advised that the acquiring banks shall:
a) Ensure that MDR are clearly unbundled for different categories of cards;
b) Enter into separate agreements or annexes within the same agreement for debit, credit and prepaid cards so as to bring in
more clarity and transparency;
c) Educate the merchants regarding the charges associated with different categories of cards, at the time of acquisition.
 UNIFIED PAYMENT INTERFACE (UPI):
* UPI has been launched by National Payments Corporation of India with RBI's vision of migrating towards a 'less-cash' & ‘more
digital’ society.
* The new interface is designed to enable all account holders to send and receive money from their Smart phones with a single
identifier – Aadhaar number, mobile number, virtual payments address and without entering any bank account information.
* The robust system will help India leapfrog the desktop and the credit card economy to become a mobile-first economy,
accelerating e-commerce and driving a host of financial services.
* UPI is a mobile interface and will work on mobile phones only. This app can be used to pay for any transaction below Rs.1 lakh,
even something as low as Rs. 50 in real time i.e instantaneously. The portal will work 24/7 thus enabling transfers to take place
any time.
* Virtual payment addresses, factor authentication, Aadhaar integration, use of payer’s smartphone for secure credential capture,
etc. are some of the core features.
* Recipients need not reveal confidential bank account information (such as IFSC code and other bank account details) to the
sender. Senders can transfer funds based on nick names which could even be the Aadhaar number.
* It supports the growth of e-commerce, while simultaneously meeting the target of financial inclusion.
* The service can be used to replace cash-on delivery during e-commerce site purchases, payments to auto rickshaws and cabs,
toll payments, payments to restaurants, retail outlets and hospitals and so on. Thus, money can be remitted, shopping can be
done using Virtual ID by entering it on the payments page of the vendor and an alert is received on the mobile asking to authorize
the transaction.
 STEPS TO USE UPI:
a)Need to have a bank account and a Smart phone. b)Download the UPI app of a bank from PlayStore. c) Connect the bank
account. d)Create a Unique ID. e)Generate a mobile pin. f) Link Aadhaar number. g)Transfer of funds take place between 2 UPI IDs.
 KEY DRIVERS OF UPI:
* UPI will make possible paying and receiving payments as easy as swiping a phone book entry and making a call on mobile
phone.
* Everyone who has an account should be able to send and receive money from their mobile phone with just an identifier without
having any other bank / account details.
* This unified layer should allow application providers to take advantage of enhancements in mobile devices, provide integrated
payments on new consumer devices provide innovative user interface features, take advantage of newer authentication services,
etc.
* This allows banks and other payment players to focus on core business and allow half a billion phones to be the primary
payment device in conjunction with other 3rd party authentication. The key drivers for UPI are Simplicity, Innovation, Adoption,
Security and Cost.
LEVEL OF SECURITY IN UPI: UPI has a single click-two factor authentication system which means that with one click the
transaction is authenticated at two levels. The user will need a mobile phone with a mobile pin called MPIN and a virtual ID
offered by the provider. With a click the transaction is checked if the mobile pin matches with the virtual address only then
does the transaction goes through.
8. General Banking
Part – a (Jan-dec 2017)
Agency Commission for GST receipt transactions
Agency banks are required to submit their claims for agency commission in the prescribed format to CAS Nagpur in respect of Central
government transactions and the respective Regional Office of Reserve Bank of India for State government transactions. As per RBI
directions (16.11.17), agency commission claims with respect to GST receipt transactions will be settled at Mumbai Regional Office of
Reserve Bank of India only and accordingly all agency banks, authorized to collect GST, have been advised to submit their agency
commission claims pertaining to GST receipt transactions at Mumbai Regional Office only.
Summary of recommendation of FRBM Committee
The FRBM Review Committee (Chairman: Shri N. K. Singh), submitted its report in January 2017 proposing establishment of a new
fiscal framework for India designed to target the debt-to-GDP ratio.
In order to improve fiscal governance, the Committee recommended setting up of an autonomous Fiscal Council under the
Ministry of Finance. The recommendations include a proposal for a prudent medium-term ceiling for general government debt of
60% of GDP - 40% for the centre and the balance 20% for the States - to be achieved no later than 2022-23.
The fiscal deficit would remain the key operational target to achieve the medium-term debt ceiling and would be progressively
brought down to 2.5% by 2022-23. Concomitantly, the revenue deficit-GDP ratio is projected to decline steadily by 0.25
percentage point each year to reach 0.8% in 2022-23.
The Committee also recommended the constitution of a Fiscal Council comprising experts in public finance, economics, or public
affairs to provide an independent assessment of the central government’s fiscal performance and compliance with targets. In
terms of institutional reforms in fiscal management, the Committee recommended
i. issuing detailed policy guidelines by the central government to provide proactive guidance to state governments;
ii. assigning to the 15th Finance Commission, the task of determining inter-state allocations for state governments for achievement of the
overall debt and fi scal targets;
iii. requesting the Reserve Bank of India to arrange for issuance of a consolidated annual prospectus of planned annual bond and loan
issuances by each state government; and
iv. introducing credit ratings for each prospectus by approved credit rating agencies. With a view to enhancing fi scal
transparency, the Committee recommended adoption of international best practices for compilation and presentation of fi scal
accounts, as laid out in the International Monetary Fund’s Government Finance Statistics Manual 2014.
Minimum qualifications & experience for CFO and CTO
Rapid innovations in banking and technology call for better risk governance in the areas of finance and technology. A Chief
Financial Officer (CFO) and Chief Technology Officer (CTO) in banks' management structure would play a crucial role in
strengthening and sustaining banks' risk governance framework.
RBI advised banks (18.05.17) that while inviting applications for the positions, they should stipulate, at a minimum, the
qualifications and experience for CFO and CTO as detailed below:
(i) Chief Financial Officer
Min Qualification: Should be a qualified Chartered Accountant.
Experience: 15 years in overseeing financial operations, preferably accounting and taxation matters, in banks/targe
corporates/PSUs/ Flsffinancial services organizations, of which 10 years should be in Banks/FIs (of which five years should be at
senior management level).
(ii) Chief Technology Officer
Minimum Qualification: Engineering Graduate or MCA or equivalent qualification from a recognized University / Institution.
Experience: 15 years of experience in relevant areas is mandatory. He/she should have worked in Banking-IT related
areas/projects involving IT Policy and Planning/ Financial Networks and Applications/ Financial Information Systems/ Cyber
Security Technologies/ Payment Technologies, etc., of which five years should be at senior management level.
Banks may prescribe additional qualifications and experience as they deem fit, taking into account the risk profile, size and scale
of operations.
Partial Credit Enhancement (PCE) to Corporate Bonds
Guidelines on PCE to Corporate Bonds by Banks on the capital requirements during the lifetime of the bond were issued by RBI
on 24.09.15. On a review of the capital requirement for PCE, RBI decided (18.05.17) that:
a) To be eligible for PCE from banks, corporate bonds shall be rated by a minimum of two external credit rating agencies at all
times;
b) The rating reports, both initial and subsequent, shall disclose both standalone credit rating (i.e., rating without taking into
account the effect of PCE) as well as the enhanced credit rating (taking into account the effect of PCE).
c) For capital computation in the books of PCE provider, lower of two standalone credit ratings and the corresponding enhanced
credit rating of the same rating agency shall be reckoned.
Where the reassessed standalone credit rating at any time during the life of the bond shows_improvement over the corresponding
rating at' the time of bond issuance, the capital requirement may be recalculated on the basis,of the reassessed standalone credit
rating and the reassessed enhanced credit rating, without reference to the constraints of capital floor and difference in notches.
Submission of Annual Information Return relating to issue of Bonds for Rs.5 lakh or more under Section 285 BA of Income Tax
Act, 1961- Change thereof
Certain financial entities have been authorized to issue Savings Bonds Notified by the Government of India cn behalf of Reserve Bank
of India. The offices accepting deposits under these schemes are to furnish Annual Information Return as contemplated in Section
285 BA of the Income Tax Act, 1961 read with Rule 114E of the Income Tax Rules, 1962 to the concerned Income Tax Authorities
before the due date i.e., August 31 of the year if the aggregate of the amount received from a person is Rs.5 lakh or more in a year.
The Income Tax Department has brought about the undermentioned changes in the AIR:
1. Name of the AIR has been changed as Statement of Financial Transaction
2. Limit of amount has been changed from Rs.5 lakh or more to Rs.10 lakh or more in a Financial Year
3. Date of Filing has been changed from August 31 of the immediately following Financial Year to May 31st RBI advised the
concerned entities (25.05.17) to submit the Statement of Financial Transaction to the Tax Authorities as per the revised statement
and procedure.
Gold Loan Disbursement in Cash
As per (1) Non-Banking Finance Company — Non Systemically Important Non-Deposit taking Company (Reserve Bank) Directions, 2016 and (2)
Non-Banking Finandal Company - Systemically Important Non-Deposit taking Company and Deposit taking Company (Reserve Bank) Directions,
2016, or RBI, high value loans against gold of Rs.1 lakh and above must only be disbursed by cheque.
On March 09, 2017, RBI clarified that in line with the rules issued under Section 269SS and 269T of the Income Tax Act, 1961, the requirements
under the Income Tax Act, 1961, as amended from time to time, would be applicable to all NBFCs with immediate effect. Currently, the relevant
threshold under the Income Tax Act, 1961 is Rs. 20000.
Gold Monetisation Scheme
As per extant guidelines, in order to have uniformity in reporting, reconciliation and accounting, agency banks may report the Gold Monetisation
Scheme transactions i.e., receipt, payment, penalty, interest, commission for mobilisation, handing charges, etc., directly through the government
account maintained for the purpose at Central Accounts Section, RBI, Nagpur, on adaily basis as in the case of the transactions of Public Provident
Fund Scheme, 1968. To operationalize the scheme, RBI advised banks on 06.03.17, that banks can approach RBI Central Accounts Section, Nagpur for
necessary arrangements to report Gold Monetisation Scheme transactions with immediate effect.
SRIKRISHNA PANEL SUGGESTIONS ON DATA PRIVACY: The Srikrishna Panel was set up on July 31 following a Government decision to
make Aadhar compulsory for all its services. The government gave the Panel three months time to suggest a Draft Bill. Now the Panel
suggested in a White Paper for setting up a Data Protection Authority, Data Audit, Registration of data collectors, enacting provisions
for protecting children’s personal information, defining penalties and compensation in case of a data breach. Panel has also suggested
that the foreign entity that offers goods or services in the country may be covered under the law.
LOAN POLICY OF ADB TO INDIA: Multi-lateral Funding Agency Asia Development Bank (ADB) has decided to provide loans up to
$4 billion on annual basis including non-sovereign debt during 2018-22 so as to accelerate inclusive transformation of India. So
cumulatively, India, the Largest recipient of ADB, will get about $20 billion over a period of five years. As part of the country
strategy,2018-22, annual sovereign funding will increase from $2 billion to $3 billion while private sector funding would be
doubled to $1 billion.
STANDARDS FOR MUTUAL FUNDS: SEBI has prescribed that directors and auditors of mutual fund companies should rotate every 10
years. Independent directors and independent trustees of MFs can now hold only two consecutive five-year terms. An independent
director will be eligible for reappointment after a cooling-off period of three years. Further, Asset Management Company (AMC)
should also adopt an auditor rotation policy. No auditor will be allowed to audit an AMC for more than two consecutive five year
terms. The auditor will be allowed reappointment after a cooling-off period of five years.
 SUPREME COURT RULED ON DRT: (Case-Aggarwal Tracom Ltd. VS. Punjab National Bank) Supreme court has ruled that if there
is a dispute between the buyer at the auction of a mortgaged property and the secured creditor, it should be resolved by the
Debt Recovery Tribunal (DRT) and not by a High Court.
 SUPREME COURT RULING ON TAX BENEFIT FOR ADVANCE DEPOSIT: (Cases of Modipon Ltd. and Paharpur Cooling Towers Ltd)
The Supreme Court has ruled that the advance deposit of central excise duty constitutes actual payment of duty within the
meaning of Section 43B of the Central Excise Act and therefore the firms are entitled to the benefit of deduction of those
amounts. Having regard to the object behind the enactment of Section 43B, the Legislative intent would be achieved by giving
benefit of deduction to an assessee upon advance deposit of duty.
 FBIL ROLLS OUT BENCHMARK RATE FOR MONEY MARKET: In an Endeavour to introduce a new benchmark that will provide a
risk-free reference rate for the money market, Financial Benchmarks India (FBIL) has developed the FBILMarket Repo Overnight
Rate (FBIL-MROR) which will be published on each working day beginning December 12, 2017. The Clearing Corporation of
India CCIL) will be the Calculating Agent for FBIL-MROR.
 HIGHER EXPORT RELIEF UNDER FTP 2015-20: Mid-term review of the Foreign Trade Policy (FTP) 2015-20 has brought in additional
relief worth Rs.8450 Crore annually for the labour intensive and micro, small and medium enterprises (MSME) sectors.
Merchandise Export from India Scheme incentives increased by 2% for labour-intensive/MSME sectors. Services Export Incentive
Scheme incentives also increased by 2% for select sectors. Validity of scrips under the incentive schemes increased from 18
months to 24 months. GST rates on transfer/sale of scrips reduced to zero. Further self-declaration has also been allowed for duty-
free inputs for export production.
FINANCIAL MARKET REGULATION
The Reserve Bank on August 10, 2017, issued the Reserve Bank Commercial Paper (CP) Directions, 2017. HIGHLIGHTS:
a)A CP is a money market instrument and shall be issued at a discount to face value in the form of a promissory note.
b)Companies, including NBFCs and All India Financial Institutions are eligible to issue CPs subject to the condition that any fund-
based facility availed of from banks / financial institutions is classified as a standard asset by all financing banks at the time of
issue.
c)Other entities like co-operative societies/unions, government entities, trusts, limited liability partnerships and any other body
corporate having presence in India with a net worth of Rs.100 crore or higher;
d)A CP shall be issued in minimum denomination of Rs.5 lakh and multiples thereof and no issuer shall have issue of a CP
underwritten or co-accepted.
e)Options (call/put) are not permitted on a CP.
f) Eligible issuers, whose total CP issuance during a calendar year is Rs.1,000 crore or more, shall obtain credit rating for issuance
of CPs from at least two CRAs and should adopt the lower of the two ratings. The minimum credit rating shall be ‘A3’ as per
rating symbol and definition prescribed by SEBI.
CO-OPERATIVE BANK REGULATION
˜ The Reserve Bank on April 28, 2017, decided that all cooperative banks, not intending to act as Point of Sale (POS) acquiring
bank are permitted to deploy third party POS terminals without prior approval of the RBI.
˜ The Reserve Bank on May 25, 2017, permitted all licensed cooperative banks having their own ATM network to issue semi-
closed PPIs, provided there are no restrictions on acceptance or repayment of deposits.
˜ The Reserve Bank on December 14, 2017, reviewed the directions to banks relating to unauthorised transactions resulting in
debits to their accounts/cards and the criteria for determining the customer liability in these circumstances.
CURRENCY MANAGEMENT
˜ The Reserve Bank on January 16, 2017, enhanced the withdrawal limits as under:
i) The limit on withdrawals from ATMs were enhanced from Rs.4,500 to Rs.10,000 per day per card, operative within the then
overall weekly limit;
ii) The limit on weekly withdrawal from current accounts were enhanced from Rs. 50,000 to Rs. 1,00,000 including CC and OD
accounts.
The Reserve Bank on February 13, 2017, advised that specified bank notes (SBNs) deposited in the currency chests, since
November 10, 2016, would be considered as part of the chest balance in the soiled note category but such deposits would not
be reckoned for calculating chest balance limit/cash holding limit, till further instructions.
˜ The Reserve Bank introduced Rs.200 and Rs.50 denomination bank notes in the Mahatma Gandhi (New) Series, on August
25, 2017 and August 18, 2017, respectively.
˜ The RBI on October 12, 2017 issued the master circular on scheme of penalties for bank branches based on performance in
rendering customer service to the members of public.
˜The Reserve Bank on October 12, 2017 advised that the currency chests should invariably report all transactions through
ICCOMS on the same day by 9 PM by uploading data through the Secured Website (SWS) to their respective link offices.
CONSUMER EDUCATION AND PROTECTION
BANKING OMBUDSMAN SCHEME 2006:
The Reserve Bank of India, on June 23, 2017, widened the scope of its Banking Ombudsman Scheme 2006, to include, deficiencies
arising out of sale of insurance/ mutual fund/ other third party investment products by banks w.e.f 1-7-2017.
a)Under the amended Scheme, a customer would also be able to lodge a complaint against the bank for non-adherence to the
Reserve Bank instructions with regard to mobile banking/ electronic banking services in India.
b)The pecuniary jurisdiction of the Banking Ombudsman to pass an Award has been increased from existing rupees one million to
rupees two million (Rs. 20 lakhs). Compensation not exceeding rupees one lac can also now be awarded by the Banking
Ombudsman to the complainant for loss of time, expenses incurred, as also, harassment and mental anguish.
c)Appeal has now been allowed for complaints relating to rejection which was not available earlier.
NON - BANKING REGULATION
OUTSOURCING OF FINANCIAL SERVICES BY NBFCs: The Reserve Bank on November 9, 2017, put in place necessary
safeguards in its directions on ‘Managing Risks and Code of Conduct in Outsourcing of Financial Services by NBFCs (Non-Banking
Financial Companies)’ in public interest.
˜ PRICING OF CREDIT: The Reserve Bank on February 2, 2017, advised all Non-Banking Financial Company – Micro Finance
Institutions (NBFC-MFIs) to ensure that the average interest rate on loans sanctioned during a quarter does not exceed the
average borrowing cost during the preceding quarter plus the margin, within the prescribed cap.
Earlier, NBFC-MFIs were required to ensure that the average interest rate on loans during a financial year did not exceed the
average borrowing cost during that financial year plus the margin, within the prescribed cap.
 RWs FOR EXPOSURES TO CORPORATES, AFCs, NBFC: The RBI has made following modifications to the risk weights applicable
to unrated exposures to captioned entities:
a) With effect from June 30, 2017, all unrated claims on corporates, AFCs, and NBFC-IFCs having aggregate exposure from
banking system of more than INR 200 crore will attract a risk weight of 150%.
b) However, claims on corporates, AFCs, & NBFC-IFCs having aggregate exposure from banking system of more than INR 100
crore which were rated earlier and subsequently have become unrated will attract a risk weight of 150% with immediate
effect.
As per the extant guidelines, unrated exposures to these entities attract a risk weight of 100 per cent.
 UNDERTAKING OF PoP FOR NPS:
*The Reserve Bank has decided in public interest that non-banking finance companies shall not undertake Point of Presence
(PoP) services for National Pension System.
*The Reserve Bank has allowed NBFC-MFIs to act as channelising agents for providing loans under special schemes of
central/state government agencies to targeted socio-economic sections of the population subject to certain conditions.
*With a view to providing greater flexibility to State and Central Cooperative Banks (StCBs/CCBs), the RBI has advised that
StCBs/CCBs can invest in Non-SLR instruments.
 LONG TERM (SUBORDINATED) DEPOSITS: The Reserve Bank on review has relaxed certain guidelines in raising and
redemption of Long Term (Subordinated) Deposits (LTDs) by Co-operative banks and prescribed certain disclosure
requirements.
RAISING OF LTDS: Co-operative banks which fulfil the following criteria as per their latest audited financial statements may raise
LTDs without prior approval of the RBI subject to the condition that the outstanding amount of LTD, which is eligible to be
reckoned as Tier II capital, is limited to 50% of Tier
I capital:
a) CRAR not less than 10 per cent;
b) Gross NPA less than 7% and net NPA not more than 3%;
c) Net profit for at least three out of the preceding four years subject to the bank not having incurred net loss in the immediate
preceding year;
d) No default in maintenance of CRR/SLR during the preceding year;
e) The bank has at least two professional directors on its Board;
f) Core Banking Solution (CBS) fully implemented;
g) The bank has a track record of regulatory compliance and no monetary penalty has been imposed on the bank for violation of
RBI directives / guidelines during the two financial years preceding the year in which the LTDs are being issued.
Þ Banks which do not meet the above-mentioned criteria may approach the respective Regional Office of Department of
Cooperative Bank Supervision for prior permission to raise LTDs.
Þ Redemption / Repayment of LTDs.
Þ Co-operative banks may redeem LTDs on maturity without prior permission of the RBI subject to the condition that banks
maintain CRAR above the minimum regulatory requirement prescribed by the Reserve Bank after redemption of LTDs.
CROSS-HOLDING OF LTDs:
* Co-operative banks should not invest in LTDs issued by other cooperative banks. However, state co-operative banks may
invest in LTDs issued by DCCBs affiliated to them subject to the condition that the amount so invested should be deducted
from Tier II capital of the StCB.
* LTD is a part of Tier II capital and is not a normal deposit and would not mature for redemption before five years. Further,
redemption would be permitted only if the bank’s CRAR is above the minimum regulatory requirement prescribed by the RBI.
PROCESS OF REGISTRATION OF NEW NBFCs:
In order to make the process of registration of new Non-Banking Finance Companies (NBFCs) smoother and hassle free, the
application form for registration of new NBFCs and the checklist of documents to be submitted have been revised. The number
of documents to be submitted by the NBFC applicants has been reduced from existing set of 45 documents to 7-8 in the revised
process.
Further, from June 17, 2016 onwards, there would be two different types of applications for non-deposit taking NBFCs
(NBFCND) based on sources of funds and customer interface as follows:
a) Type I - NBFC-ND not accepting public funds / not intending to accept public funds in the future and not having customer
interface / not intending to have customer interface in the future.
b) Type II - NBFC-ND accepting public funds / intending to accept public funds in the future and/or having customer interface /
intending to have customer interface in the future.
 RISK WEIGHTS ASSIGNED TO SOVEREIGN DEBT: * In terms of the extant directions, deposit accepting NBFCs, systemically
important non-deposit taking NBFCs, all NBFC-MFIs and all NBFC-IFCs shall maintain a minimum capital ratio consisting of Tier I
and Tier II capital which shall not be less than 15 per cent of its aggregate risk weighted assets on-balance sheet and of risk
adjusted value of off-balance sheet items.
* Based on the representations received from the industry, the risk weights assigned to exposures to domestic sovereigns have
been reviewed. It has been decided as under:
A) Exposures to Central Government:
i) Fund based and non-fund based claims on the Central Government will attract a zero risk weight.
ii) Central Govt. guaranteed claims will attract a zero risk weight.
B) Exposures to State Government:
i) Direct loan / credit / overdraft exposure and investment in State Government securities will attract zero risk weight.
ii) State Government guaranteed claims, which have not remained in default, will attract 20 per cent risk weight. However, if
the loans guaranteed by the State Government have remained in default for a period of more than 90 days, a risk weight of 100%
should be assigned.
9. RECALLED & EXPECTED QUESTIONS: TEST YOURSELF
Latest RBI POLICY BASED Questions ( 01.04.2017 to 31.12.2017)
1 What is the number of digits in UIDAI Aadhaar number : a 10 b 11 c 12 d 14
2 Model Bank sanctioned working capital limits of Rs.30 lac to M/s Janardhan & Co. for which a guarantee was given by Mr.
Satyanarayana, the father of managing partner Mr. Janardhan. Due to some dispute amongst the father and son, Mr.
Satyanarayana gave a notice to the bank withdrawing his guarantee when the balance in the account was Rs.27.60 lac. The
guarantee bond provide for a notice of withdrawal of 2 months.
a With the issue of withdrawal notice the guarantor is totally absolved of his liability and he is no more liable for the outstanding
dues.
b After issue of the withdrawal notice, the guarantor will be liable for 2 months during which the bank can recover the loan from
the guarantor alognwith other parties.
c Bank will send a notice to the firm for arranging another guarantee during 2 months period and would continue with the
operations.
d Bank will stop debit operations in the account to determine the liability of the guarantor and inform the firm about withdrawals
and also for arranging another security as per satisfaction of the bank.
3 Which of the following represents the direct quotation in India, in the forex transactions:
a 1 US$ = 0.75 euro b Rs.100 = 2.10 US$ c 1 pound sterling = Rs.79.10 d all the above
4 The rates of interest on loans and advances given by banks w.e.f. 01.04.2016 are to be determined with reference to:
a bench mark prime lending rate, b marginal cost of funds based lending rate, c base rate, d bank rate
5 Which among the following instruments is not a negotiable instrument as per provisions of Section 13 of Negotiable
Instrument Act? a bill of lading, b commercial paper, c certificate of deposit ,d govt. treasury bill e all the above
6 No collateral security to be taken for loan up to Rs.10 lac in which of the following cases:
a MSE Loan and Agri-clinics and Agro Business Centres , b MSE Loan and PMEGP Loan, c PMEGP Loan and Agri-clinics
and Agro Business Centres d MSE Loan, Loans to individual persons under SGSY, Agri-clinics and Agro Business Centres
7 Bank has granted a loan of Rs.90 lac to an MSE in other than NE States and other than Women enterprise. In case the loan
becomes NPA, what is the amount of guarantee cover that would be available to this loan:
a Rs.65 lac b Rs.62.50 lac c Rs.60.00 lac d Rs.57.50 lac
What is the income ceiling for DRI loan eligibility: a Rs.12000 for rural areas and Rs.15000 for urban areas
b Rs.15000 for rural areas and Rs.20000 for urban areas, c Rs.18000 for rural areas and Rs.20000 for urban areas
d Rs.18000 for rural areas and Rs.24000 for urban areas
9 Where a bank is having unreconciled inter-branch entries old than ____, it has to make provision at ___%
a 6 months, 100%, b 6 months, 75%, c 12 months, 100% , d 18 months, 100%
e no provision is required, entries being intra-bank
10 A doubtful NPA account is purchased by Bank-B from Bank-A. What classification would be given by the Bank-B to this account:
a to be treated as substandard account, b to be treated as doubtful up to 12 months category irrespective of its classification
with Bank-A, c to be treated in the same category in which it had been classified by Bank-A
d to be treated standard account for initial period of 90 days, e to be treated standard account for 12 months.
11 Accumulated losses are shown by a joint stock company, in its balance sheet as: a footnote of the balance sheet
b deduction from the paid up capital, c deduction from the net worth, d intangible asset e non-current asset
12 In case of collection of cheques and bills, the relationship of bank with the customer is that of:
a Bank as agent and customer trustee, b Bank as trustee and customer debtor, c Banker as debtor and customer creditor
d Banker as bailor and customer bailee ,e bank as agent and customer principal
13 The following categories of loans can be priced without being linked to MCLR as the benchmark for determining interest rate:
(1) Advances to banks’ depositors against their own deposits. (2) Advances to banks’ own employees including retired
employees. (3) Advances granted to the Chief Executive Officer / Whole Time Directors. (4) Loans linked to a market
determined external benchmark. - a 1 only b 1 and 3 only c 1 to 4 all d. 1, 3 and 4 only
14 Banks are to review and publish their Marginal Cost of Funds based Lending Rate (MCLR) of different maturities every ___ on a
pre-announced date with the approval of the Board or any other committee to which powers have been delegated.
a fortnight , b month c quarter d six months
15 On comparison of balance sheet of firm for two years, it is observed that its debt equity ratio has increased from 1.5:1 to 2:1 but
its current ratio and the total of balance sheet has not changed. Which of the following is possibly true in this regard
a only the amount of net worth has increased, b only the amount of long term liabilities has declined
c only the amount of intangible assets has decreased , d the amount of long term liabilities has increased or amount of net worth
had declined or amount of intangible assets has increased
16 At the time of renewal of working capital limits of a partnership firm, it was observed by the appraising officer that the quick ratio
of the firm has declined substantially but the current ratio has not changed. Which among the following could be true:
a the amount of stocks has declined, b the firm has become slow in recovery of its book debts
c the firm’s stocks as percentage of current assets have increased , d the firm’s receivables as percentage of current assets have
declined , e c and d above
17 What is the maximum amount that can be remitted outside India, from NRO account, representing sale proceeds of the
immovable property in India - a Rs.10 lac in a calendar year, b Rs.1 lac in a calendar year , c 1 lac US $ per financial year
d 1 million US $ per financial year, e no such remittance is allowed.
18 Hindi day is observed on : a Jan 26 b Jun 22 c Sept 14 d Nov 11
19 The minimum paid up capital of a new Private Universal Bank has to be:
a Rs.100 cr b Rs.200 cr c Rs.300 cr d Rs.400 cr e Rs.500 cr
20 Loan under which of the following scheme/purpose, can be allowed within the DRI financing of 4%:
a housing loans up to Rs.20000 to poor families, b housing loans up to Rs.20000 under National Housing bank Scheme
c housing loans up to Rs.20000 under Indira Awas Yojna, d all the above
21 What is the maximum amount that banks can levy as penal charges for non-maintenance of minimum balances in any
inoperative account.
a no charges can be levied, b within the ceiling rate fixed by RBI, c not more than 1%
d at bank discretion under Board approved procedure and policy
22 HUF cannot be a partner in a partnership firm as per Supreme Court Judgments. The judgments in based on the premise that :
a HUF is a legal person with Karta as its head, but other coparceners are not liable
b HUF is not a legal person and cannot enter into such agreement that makes it liable for the action of others.
c HUF is not competent to enter into any contract with outsiders and make it liable for the actions of others
d HUF cannot enter into any contract with outsiders
23 A company has to make payment of dividend to large no. of its shareholders through electronic medium. It should use:
a RTGS system b EFT system c SWIFT system d ECS – Debit clearing system e ECS – Credit clearing system
24 A firm has obtained a term loan of Rs.12 lac and its capital is Rs.4 lac. The firm has created general reserve of Rs.3 lac while it has
been showing pre-paid expenses of Rs.1 lac in its balance sheet. The debt equity ratio is:
a 1.71:1 b 1.89:1 c 2.00:1 d data incomplete. Calculation not possible
25 Data Storage unit of a computer is called - a random access memory, b hard disk, c memory unit, d compact disk
26 X makes a request to the bank to write the name of his nominee on his pass book.
a This can be done as customer has given his consent
b This cannot be done, since it would amount to disclosure of customer account information
c This cannot be done, as it is a risk-prone proposal.
d Bank can make mention that it is a nomination account but name of the nominee cannot be written.
27 Which of the following is correct with regard to the interest on a saving bank deposit:
a it is paid for the average balance maintained during the month, but from 1.4.2009 it is payable on a daily product basis
th
b it is paid for the minimum balance maintained during 10 day to last day of the month, but from 1.4.2009 it is payable on a daily
product basis
c it is paid for the maximum balance maintained during the month, but from 1.4.2009 it is payable on a daily product basis
d from 1.4.2010 it is payable on a daily product basis
28 When book debts are realised by a firm, what is the effect: a current ratio increases, b current ratio decrease
c quick ratio increase, d quick ratio decreases e there is no effect
29 A bank has an oversold position in foreign exchange on a particular day. It has to square its position at the end of the day. The
foreign exchange rates are increasing: a the bank will gain substantially, b the bank will gain marginally
c there will be no effect on the bank , d the bank will incur loss
30 Form 15-H (in terms of Income Tax Act) is used in which of the following cases:
a issue of tax deduction certificate by the banks, b declaration by senior citizen for non-deduction of tax at source, c declaration
by an ordinary customer for non-deduction of tax at source, d exemption for non-quoting of PAN e: None of the above
31 Under RTGS the transactions time 8 am to 4.30 pm is in respect of which of the following category of transactions:
a inter-bank transactions, b intra-bank transactions, c all transactions d customer transactions
32 What is the time period of the notice which is required to be given by a bank for sale of security charged to the bank after
taking possession under the provision of Securitisation and Reconstruction of Financial Assets and Enforcement of Security
Interest Act 2002: a 15 days b 30 days c 45 days d 60 days e 90 days
33 As per extant instructions of RBI, what is the maximum amount limit that the bank can fix up to which minors may be allowed
to operate their deposit accounts independently. a max Rs.2 lac, b max Rs.1 lac, c max Rs.50000, d at discretion of banks
34 In a loan account, the Central Govt. has given guarantee. The loan account is overdue for the last 2 years and 5 months. What is
the provision %age on the loan: a. 0.40%, b.10% , c. 20%, d. 30% , e. No provision is to be made
35 A loan is guaranteed by the Guarantee of State govt. and it is running irregular for the last 5 months. The loan will be classified as
___: a standard account, b special mention account, c sub-standard unsecured account
d sub-standard secured account e: None of the above
36 A monetary ceiling of Rs.20 lac has been imposed for entertaining cases by which of the following:
a Consumer Courts, b Lok Adalat, c District Courts, d Ombudsman Scheme
37 Which of the following in general, is eligible, as a borrower, under National Rural Livelihood Mission (NRLM)?
a SC/ST women and non-SC/ST/women, b women self help groups, c SC/ST and non-SC/ST men,d any of the above
38 A power of attorney executed by an NRI in favour of his mother for obtaining payment from the deceased account in the name
of his father has been received. This requires to be stamped as per rates prescribed by ___ , within a period of ___
a Central Govt., 4 months,b Central Govt., 3 months, c State Govt., 3 months,d State Govt., 4 months
e Not require stamping in India
39 An NPA has been sold by Bank-B to Bank-A. What is the minimum period for which the account should have been in the books of
Bank-B before sale to the bank:- a 12 months as NPA,b any NPA account, c 24 months as doubtful account
d 24 months as sub-standard including special mention account status, e sale of ARC is not permitted.
40 What will be due date for a bill dated 27.12.2016 payable 30 days after date:
a Jan 23, 2017, b Jan 25, 2017, c Jan 26, 2017, d Jan 27, 2017
41 What type of right the banks are having under SARFAESI Act in case of default by the borrower, in repayment of the loan:
a take possession of the secured assets, b takeover management of the assets, c to sell or lease the secured assets
d any of the above
42 Which of the following kinds of LCs, provides for storage of goods in warehouse:
a Back to back letter of credit, b Transferable letter of credit, c Irrevocable letter of credit
d Green Clause letter of credit, e Red clause letter of credit
43 What is the target for domestic banks for priority sector lending:
a 40% of adjusted net bank credit or credit equivalent of off-balance sheet exposure whichever is higher, as on 31st Mar of previous year,
b 40% of the adjusted net bank credit or credit equivalent of off-balance sheet exposure whichever is lower, as on 31st Mar of current year
c 32% of the adjusted net bank credit or credit equivalent of off-balance sheet exposure whichever is higher, as on 31st Mar of previous year
d 40% of the net bank credit or non-fund based limit whichever is higher, as on 31st Mar of previous year
44. Commercial paper is an unsecured money market instrument, which is issued in the form of:
a usance bill of exchange, b usance promissory note , c participatory note d transferable paper
45. Commercial paper can be issued with a minimum maturity period of:
a 7 days b 15 days c 30 days d at discretion of the issuer
46. Commercial paper can be issued with a maximum maturity period of:
a 6 months b 12 months c 3 years d at discretion of the issuer
47. Which of the following cannot issue a commercial paper?
a non-bank finance companies b all India financial institutions c companies d banks
48. If the issuer of a commercial paper is a trust or cooperative society or limited liability partnership, having presence in India, its
minimum networth must be: a Rs. 4 cr b Rs.10 cr c Rs.50 cr d Rs.100 cr
49 The minimum amount for which a commercial paper can be issued is: a Rs.1 lac, b Rs.2 lac, c Rs.5 lac, d Rs.10 lac
50. Which of the following statement about a commercial paper is not correct?
a it can be issued at a discount to face value, b call or put option is not allowed on commercial paper
c issue of commercial paper cannot be under-written or co-accepted , d banks cannot invest in a commercial paper
51. Credit rating from at least 2 SEBI approved credit rating agencies is mandatory, where the size of the issue is:
a Rs.1000 cr or above b Rs.500 cr and above c Rs.100 cr and above d mandatory in all cases
52. The minimum credit rating grade from SEBI approved credit rating agencies should be ___, for an issuer to be eligible to issue
commercial paper? - a triple-A b A-3 c A-1 d AA
53.The issuer of a commercial paper can give a buy back offer which can be made after ____ days from date of issue?
a 15 days b 30 days c 45 days d 60 days
54. The issuer of a commercial paper is required to make arrangement, so that the commercial paper is credited to demat
account of the investor within: a 7 days of issue b 10 days of issue c 14 days of issue d 30 days of issue
55. An instrument for borrowing funds by selling securities with an agreement to repurchase the securities on a mutually agreed
future date at an agreed price which includes interest for the funds borrowed, is called:
a commercial paper b promissory note c reverse repo d repo
56. An instrument for lending funds by purchasing securities with an agreement to resell the securities on a mutually agreed
future date at an agreed price which includes interest for the funds lent, is called:
a commercial paper b promissory note c reverse repo d repo
57. To be eligible to be a tri-party agent under Tri-party Repo Directions-2017 of RBI, the entity should have minimum paid up
capital of: a Rs.10 cr b Rs.15 cr c Rs.20 cr d Rs.25 cr
58. The tri-party agent under Tri¬party Repo Directions of RBI, is required to preserve the trade records for a period of:
a 3 year b 5 years c 8 years d 10 years
59. When a department of Govt. of India wants a letter of credit issued, it is issued by: a RBI ,b SBI c any commercial bank
with which govt. has made arrangement, d any commercial bank on behalf of RBI with which RBI has made arrangement
60. In respect of letter of credit or bank guarantee got issued by Central Govt. department, the role of RBI is :
a limited to advising the LCs/BGs , b limited to reimbursement of payments made by the banks for such LCs/BGs on behalf of the
government, after satisfying itself with the debit mandate given by the government.
c limited to confirming such LC or BGs, d none of the above, as RBI does not deal with LC/BG transactions.
61 As per Financial Literacy Camps guidelines of RBI of July 2017, FLCs and rural branches of banks are eligible for funding support
from the Financial Inclusion Fund for the financial literacy camps to the extent of 60% of the expenditure of the camp subject to a
maximum of ____ per camp - a Rs.5000, b Rs.10000, c Rs.15000, d Rs.20000
62 As per Financial Literacy Camps guidelines of RBI of July 2017, funding for handheld projectors and speakers would be provided
from FIF to the extent of 50% of the cost incurred on purchase of hand held projector and portable speaker (both put together)
subject to a maximum of ____ per rural branch / FLC on a reimbursement basis.
a Rs.5000 b Rs.10000 c Rs.15000 d Rs.20000
63 For ascertaining the investment in plant and machinery for classification of an enterprises as Micro, Small and Medium, which
of the following documents could be relied upon:
a A copy of the invoice of the purchase of plant and machinery,
b Gross block for investment in plant and machinery as shown in the audited accounts
c A certificate issued by a Chartered Accountant regarding purchase price of plant and machinery, d any of the above
64 For the investment in plant and machinery for the purpose of classification of an enterprise as Micro, Small or Medium, which
of the following is to be taken into account
a book value (purchase value minus depreciation) or the purchase value of the plant and machinery, whichever is higher
b book value (purchase value minus depreciation), c the purchase value of the plant and machinery
d book value (purchase value minus depreciation) or the purchase value of the plant and machinery, whichever is lower
65 The limits for investment by foreign portfolio investors (FPIs) in Central Government Securities and State Development
Loans (SDLs) has been increased from Rs.2580 billion to:
a Rs.2680 billion b Rs.2751 billion c Rs.2781 billion d Rs.2865 billion
66 An unauthorized electronic bank transaction has taken place by a 3rd party in the saving bank account of Mr. Z. After receipt
of bank notification about the transaction, the customer notifies the bank within 2 days. Who will bear the loss of this
transaction? - a bank concerned b customer concerned c bank and customer in the ratio of 50:50
d bank up to Rs.25000 and beyond that customer
67 If some unauthorized electronic bank transaction is noticed by the customer in his accounts, he can provide information to the
bank. Which of the following is not a correct channel for this?
a report through website of the bank b report to toll free helpline of the bank
c reporting to home branch d report to any branch of bank.
68 In cases where due to unauthorized electronic bank transaction, the loss is due to negligence by a customer, such as sharin the
payment credentials. Who will bear the loss:
a bank will bear the entire loss until he reports the unauthorised transaction to the bank
b loss occurring after the reporting of the unauthorised transaction shall be borne by the customer
c all loss will be born by the customer, d until report to bank, customer and loss occurring after reporting by customer, bank.
69 In cases where the responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with the
customer, but lies elsewhere in the system and when there is a delay of 4 to 7 working days after receiving the communication
from the bank, on the part of the customer in notifying the bank of such a transaction, the per transaction liability of the
customer shall be limited to Rs._____ in case of a saving bank account? - a Rs.5000, b. Rs.10000, c Rs.25000 d no liability
customer shall be limited to Rs._____ in case of a basic saving bank deposit account?
a Rs.5000 b Rs.10000 c Rs.25000 d no liability
customer shall be limited to Rs._____ in case of a cash credit account with limit of Rs.40 lac.
a Rs.5000 b Rs.10000 c Rs.25000 d no liability
72 On being notified by the customer, the bank shall credit (shadow reversal) the amount involved in the unauthorised electronic
transaction to the customer’s account within ____ days from the date of such notification by the customer (without waiting for
settlement of insurance claim, if any).
a 7 calendar days b 10 calendar days c 7 working days d 10 working days
73 Banks are to ensure that a complaint is resolved and liability of the customer, if any, established within such time, as may be
specified in the bank’s Board approved policy, but not exceeding ____ days from the date of receipt of the complaint,
74. Banking Ombudsman Scheme 2006 as modified w.e.f. July 01, 2017, covers:
a commercial banks and all financial entities ,b commercial banks, RRB and scheduled primary cooperative banks
c commercial banks, RRB and scheduled primary cooperative banks and all financial entities
d commercial banks only
75.Which of the following statement is not correct with reference to Banking Ombudsman Scheme 2006 as modified w.e.f. July
01, 2017: a Ombudsman can be GM or CGM of RBI, b Ombudsman’s term can be max 3 years, at a time
c expenses of Ombudsman Secretariat are borne by participanting banks, d Ombudsman is appointed by RBI
76. A customer can file complaint with Banking Ombudsman. In this respect which statement is not correct?
a complaint can be filed if bank rejects the complaint, b complaint can be filed if customer is not satisfied with bank reply
c complaint can be filed, if does not receive any replay within 15 days,
d complaint can be filed within one year, in the above circumstances.
77.Customer can appeal against grounds of rejection of complaint by Ombudsman to Deputy Governor, the Appellate Authority,
within ___ days of receipt of communication regarding rejection.- a 7 days b 10 days c 15 days d 30 days
78. Where a complaint could not be settled by Banking Ombudsman by agreement within ____ from the date of receipt of the
complaint, Ombudsman may pass an Award or reject the complaint
a 10 days b 15 days c one month d two months
79. Banking Ombudsman can award compensation to be paid by bank to the complainant, not more than actual loss suffered as
direct consequence of act of omission or commission of the bank OR _____, whichever is less:
a Rs.25 lac b Rs.20 lac c Rs.15 lac d Rs.10 lac
80. Banking Ombudsman can also award compensation to be paid by bank to the complainant up to Rs.____, on account of
expenses, mental agony etc. - a Rs.1 lac b Rs.2 lac c Rs.5 lac d Rs.10 lac
81. Banking Ombudsman can award compensation in case of Credit Card issue, to be paid by bank to the complainant, not more
than actual loss suffered as direct consequence of act of omission or commission of the bank OR _____, whichever is less:
a Rs.1 lac b Rs.2 lac c Rs.5 lac d Rs.10 lac
82. Customer is required to send acceptance of the award of Ombudsman within ____ days of date of receipt of the award.
83. Bank is to implement the award of Ombudsman within _____ and intimate compliance to the Banking Ombudsman.
a one month from the date of receipt of the acceptance from the complainant
b two months from the date of receipt of the acceptance from the complainant
c one month from the date of receipt of the award of Ombudsman,
d two months from the date of receipt of the award of Ombudsman
84. The complainant can file an appeal to Appellate Authority (Dy. Governor RBI) againt Award of Ombudsman within ___ of date
of receipt of Award - a 3 months b 2 months c 30 days d 15 days
85. The Bank can file an appeal to Appellate Authority (Dy. Governor RBI) againt Award of Ombudsman within ___ of date of
receipt of acceptance of customer, with permission of CMD or MD or ED or CEO:
a 3 months b 2 months c 30 days d 15 days
86. The Appellate Authority (Dy. Governor RBI) can extend the specified period, to make appeal againt Award of Ombudsman by
complainant, by ___ : a 3 months b 2 monthz c 30 days d 15 days
87. Who can represent a bank before the Ombudsman on issues relating to complaints under Ombudsman Scheme?
a Chief Customer Service Officer , b Internal Ombudsman of the bank
c Nodal Officer at Regional/Zonal Office of the bank , d Any officer of the bank
88. As per RBI guidelines, what is the minimum original maturity period for Masala Bonds raised upto USD 50 million equivalent in
INR per financial year ? a 2 years b 3 years c 5 years d 7 years
89. As per RBI guidelines, what is the minimum original maturity period for Masala Bonds raised above USD 50 million equivalent
in INR per financial year ? a 2 years b 3 years c 5 years d 7 years
90. What is the risk weight for capital adequacy ratio purpose, of a home loan up to Rs.30 lac, where the loan to value ratio is max
80% : a 25% b 35% c 50% d 75%
91. What is the risk weight for capital adequacy ratio purpose, of a home loan up to Rs.30 lac, where the loan to value ratio is
above 80% but max 90% : a 25% b 35% c 50% d 75%
92. What is the risk weight for capital adequacy ratio purpose, of a home loan above Rs.30 lac up to Rs.75 lac, where the loan to
value ratio is max 80% - a 25% b 35% c 50% d 75%
93. What is the risk weight for capital adequacy ratio purpose, of a home loan above Rs.75 lac, where the loan to value ratio is
max 75% - a 25% b 35% c 50% d 75%
94. What is the rate of provision on a standard home loan, where the loan to value ratio is between 75% to 90% according to size
of the loan amount: a 25% b 35% c 50% d 75%
95. The State Level Bankers’ Committees are required to send a confirmation to RBI by ___, that that all unbanked rural centres in
villages with population above 5000 have been banked.
a 30.06.17 b 30.09.17 c 31.12.17 d 31.03.18
96. What is the no. of domestic credit rating agencies approved by RBI for prudential guidelines on capital adequacy ratio, as on
30.06.2017? - a 10 b8 c7 d6
97. Which of the following is the latest credit rating agency approved by RBI for credit rating for the purpose of prudent guidelines
on capital adequacy ratio?
a SMERA b INFOMERICS c BRICKWORK RATING d FITCH Rating
98. The agency banks can furnish their claim on agency commission to Reserve Bank within ____ from the end of the quarter in
which the transactions have been conducted, starting with June 2017.
99. With reference to the implementation of Goods and Service Tax (GST) regime, the term CPIN stands for :
a Common Portal Identification Number (CPIN), b Central Portal Identification Number (CPIN)
c Central Portal Information Number (CPIN), d Common Payment Identification Number (CPIN)
100. For the quarter July to September, what is the rate of interest on Senior Citizens Saving Scheme:
a 7.5% b 7.8% c 8.3% d 9.1%
101. For the quarter July to September, what is the rate of interest on Public Provident Fund Scheme:
a 7.5% b 7.8% c 8.3% d 9.1%
102. For the quarter July to September, what is the rate of interest on Sukanya Samridhi Account Scheme:
a 7.5% b 7.8% c 8.3% d 9.1%
103. For the quarter July to September, what is the rate of interest on Kissan Vikas Patra Scheme:
a 7.5% b 7.8% c 8.3% d 9.1%
104 With effect from July 10, 2017, what is the batch interval time in NEFT settlements:
a half-hour b an hour c two hours d three hours
105With effect from July 10, 2017, what is the no. of batches in NEFT settlements:
a 11 b 12 c 23 d 25
106.Under NEFT, all participating banks are required to give the credit to beneficiary customer :
a after the inter-bank settlement has been completed, b after inter-bank settlement has been completed and the End-of¬Batch
(EOB) message is received by them, c after the End-of-Batch (EOB) message is received by them,
d after all the settlements have been completed and there is return message
107 A Banking Outlet for a Domestic Scheduled Commercial Bank (DSCB), a Small Finance Bank (SFB) and a Payment Bank (PB) is a
fixed point service delivery unit, manned by either bank’s staff or its Business Correspondent where services of acceptance of
deposits, encashment of cheques/ cash withdrawal or lending of money are provided for a minimum of __ hours per day for at
least ___ days a week.- a 5 hours and 5 days b 6 hours and 5 days, c 4 hours and 5 days d 4 hours and 6 days
108 A banking outlet which does not provide delivery of service for a minimum of 4 hours per day and for at least 5 days a week
will be considered a : a Banking unit b Unbanked rural centre c part-time banking outlet d Place of banking business
109. Which of the following is categorized as a banking outlet as per RBI branch authorization policy 2017?
a ATMs b Mobile branches c E-lobbies d none of the above
110 As per RBI’s Branch Authorization Policy 2017, ____ banking outlets opened duing a financial year, must be in rural areas?
a. 20%, b. 25%, c. 30%, d. 35%
111. Merger, Closure and shifting of any rural ‘Banking Outlet’ as well as a sole semi urban ‘Banking Outlet’ would require
approval of: a RBI b SLBC c DCC/DLRC d local administration
112. On short term crop loans, interest subvention of 2% is available to ___ during 2017-18 as an interim measure:
a public sector banks b private sector banks
c public sector banks and loans in rural and semi-branches given by Private sector banks , d farmers
113. For availing short term crop loan interest subsidy, the eligible loan amount is:
a up to Rs.3 lac b up to Rs.2 lac c up to Rs.1 lac d any amount
114 To avail short term crop loan interest subsidy, the rate of interest from borrower should be:
a 4% pa ,b 5% pa, c 6% pa ,d 7% pa
115 Additional interest subvention of ___ % is available to prompt payee farmers from date of disbursement of crop loan up to
actual date of repayment by farmer or up to due date fixed by bank, whichever is earlier: a 1% ,b 2% c 3% d 4%
116 If additional interest subvention is available to prompt payee farmers for short term crop loan, the effective interest rate shall
be: a 1% b 2% c 3% d 4%
117. In order to discourage distress sale by farmers and to encourage them to store their produce in warehouses against
warehouse receipts, the benefit of interest subvention will be available to small and marginal farmers having Kisan Credit Card for
a further period of upto ____ post-harvest on the same rate as available to crop loan against negotiable warehouse receipt for
keeping their produce in warehouses.- a 3 months b 6 months c 9 months d 12 months
118 To provide relief to farmers affected by natural calamities, the interest subvention of 2% will continue to be available to
banks for the _____ on the restructured amount. - a 1st six months ,b 1st year, c 1st 2 years d moratorium period
119. Banks are required to submit their claims for interest subvention of 2% and 3% for short term crop loans on: a half yearly
basis b yearly basis, c half yearly for 2% and yearly for 3% subvention d half yearly for 3% and yearly for 2% subvention
120 Statement of Financial transactions is required to be submitted by banks to Income Tax Department. Which of the following is
not correct in this context: a it replaced the previous statement called Annual Financial Information
b it is required to be submitted by 31st May, c it is required to be submitted on Form 61A, d none of the above
121. Consequent to Enforcement of Security Interest and Recovery of Debts Laws & Misc. Provisions (Amendment) Act, 2016,
Asset Reconstruction Company can commence or carry on the business of securitisation or asset reconstruction only if its Net
Owned Fund are minimum : a Rs.1 crore or amount notified by RBI, b Rs.2 crore or amount notified by RBI
c Rs.5 crore or amount notified by RBI, d Rs.10 crore or amount notified by RBI
122. Keeping in view the greater role envisaged for ARCs in resolving stressed assets as also the recent regulatory changes
governing sale of stressed assets by banks to ARCs, RBI decided to fix the minimum NOF requirement for ARCs at ____crore on an
ongoing basis: a Rs.10 cr b Rs.50 cr c Rs.100 cr d Rs.200 cr
123 For effective risk management, banks are required to appoint Chief Risk Officer, who can be appointed / transferred
/removed only with permission of:
a Board of Directors, b Reserve Bank of India c Ministry of Finance, d Risk Management Committee
124Under Sovereign Gold Bond 2017¬ 18 (series-1), what is the price fixed for the purpose of issue:
a Rs.2951 b Rs.2901 c Rs.2881 d Rs.2811
125The Sovereign Gold Bond 2017¬ 18 (series-1), have a maturity period of: a 5 years b 6 years c 7 years d 8 years
126 The denomination of Sovereign Gold Bond 2017-18 (series-1), is:
a one gram of gold b two gram of gold c five gram of gold d ten gram of gold
127. The rate of interest offered on Sovereign Gold Bond 2017-18 (series-1) is: a 2.5% pa payable annually , b 2.5% pa payable
half-yearly , c 2.25% pa payable annually d 2.25% pa payable half-yearly
128 Sovereign Gold Bond 2017-18 (series-1), the payment can be accepted in Indian Rupees through cash up to a maximum of ?
a Rs.10000 b Rs.20000 c Rs.25000 d Rs.50000
129 Which of the following statement is not corrected with regard to Sovereign Gold Bond 2017-18 (series-1)?
a the bonds can be accepted as collateral security for loan b the loan to value ratio for loan is 80%
c the bonds can be traded on stock exchange d the bonds are transferable.
130 Banks are required to make suitable disclosures in their balance sheet w.e.f. 31.03.17, wherever the additional provisioning
requirements assessed by RBI exceed ____ percent of the published net profits after tax for the reference period.
a 5% b 10% c 15% d 20%
131 Banks are required to make suitable disclosures in their balance sheet w.e.f. 31.03.17, wherever the additional Gross NPAs
identified by RBI exceed ____ percent of the published incremental Gross NPAs for the reference period, or both.
a 5% b 10% c 15% d 20%
132 Banks are to put in place a Board–approved policy for making provisions for standard assets at rates higher than the
regulatory minimum, based on evaluation of risk and stress in various sectors. For this purpose, the policy shall require a review,
at least on a _____ basis, of the performance of various sectors of the economy to which the bank has an exposure to evaluate
the present and emerging risks and stress therein.- a monthly basis b quarterly basis c half-yearly basis d annual basis
133 Banks can participate up to ____ % of the unit capital of Real Estate Investment Trusts (REITs) and Infrastructure Investment
Trusts (InvITs) within the overall ceiling for direct investments in shares, convertible bonds/ debentures, units of equity-oriented
mutual funds and exposures to Venture Capital Funds (VCFs) ?- a 10% b 15% c 20% d. 25%
134 A Bank’s direct investment in shares, convertible bonds/ debentures, units of equity-oriented mutual funds and exposures to
Venture Capital Funds (VCFs) can be up to ?-
a 10% of its capital funds b 10% of its net worth c 20% of its capital funds d 20% of its net worth
135 RBI can invoke Prompt Corrective Action, if the capital adequacy ratio + capital conservation buffer ratio, of a bank in India,
falls below: - a 10.25% b 9.75% c 8.50% d 7.75%
136 RBI can invoke Prompt Corrective Action, if the Common Equity Tier-1 ratio + capital conservation buffer ratio, of a bank in
India, falls below: a 10.25% b 9.75% c 8.50% d 7.75%
137 RBI can invoke Prompt Corrective Action, if net NPA ratio of a bank crosses the following level ?
a 5% b 6% c 8% d 9%
138 RBI can invoke Prompt Corrective Action, if a bank has shown negative return on assets for:
a one year b two consecutive years c three consecutive years d four consecuitive years
139 RBI can invoke Prompt Corrective Action, if the Tier-1 leverage ratio of a bank, comes below:
a 4% b 3.5% c 3% d 2.5%
140 As per Monetary Policy 2017-18 announced in April 2017, RBI decided to narrow the policy rate corridor around the policy
repo rate to plus and minus _____ bps with immediate effect. - a 25 bps b 50 bps c 75 bps d 100 bps
141 As per Monetary Policy 2017-18 announced in April 2017, RBI decided to stipulate a minimum net owned funds of Rs.____
crore for ARCs.- a 200 cr b 100 cr c 50 cr d 25 cr
142 As per Monetary Policy 2017-18 announced in April 2017, RBI decided to reduce the settlement cycle of NEFT from hourly
batch to half-hourly batch, thus increasing the batches from present ____ to ___ :
a 11 to 21 b 12 to 23 c 11 to 23 d 12 to 24
143. The return discipline under NEFT is settlement batch time plus ____ hours?
a half-hour b one-hour c two hours d two and half hour
144 Financial literacy centres are required to hold special camps for a period of one year beginning 01.04.2017, on the following
aspects: a small entrepreneurs and school children, b senior citizens and self help groups, c UPI and #99 (USSD),d all the above
145 Financial literacy centres are eligible for funding support of maximum Rs. ___ per financial literacy camps?
a Rs.10000 b Rs.15000 c Rs.20000 d Rs.25000
146. Under financial literacy, the rural branches of banks are required to conduct one camp per month on ____, after branch
hours beginning 01.04.2017: a last working day b last Friday c 3rd Friday d 1st Friday
147. SLBCs are required to submit to Regional Office of RBI, a ____ return on financial literacy centres, within ___ days.
a monthly, 7 days b monthly, 15 days c quarterly, 20 days d half-yearly, 20 days
148. According to RBI definition under RBI (Interest Rate on Deposits) Directions 2016, bulk deposit means:
a single rupee term deposit of Rs.15 lac and above, b single rupee deposit balance of Rs.15 lac and above
c single rupee term deposit of Rs.1 cr lac and above, d single rupee deposit balance of Rs.1 cr lac and above
149. According to RBI definition under RBI (Interest Rate on Deposits) Directions 2016, notice deposit means:
a deposit which is withdrawable on demand, b deposit which is withdrawable on one day notice
c deposit which is withdrawable on 3 days notice, d deposit which is withdrawable on 10 days notice
150. According to RBI definition under RBI (Interest Rate on Deposits) Directions 2016, the maximum maturity period of a term
deposit can be: a one year b five years c 10 years d at bank discretion
151. According to RBI definition under RBI (Interest Rate on Deposits) Directions 2016, the minimum maturity period of a term
deposit can be: a 7 days b 15 days c 30 days d at bank discretion
152. All transactions, involving payment of interest on deposits shall be rounded off to the ____ for rupee deposits:
a nearest 25 paise b nearest 50 paise c nearest one rupee d at bank discretion
153 All transactions, involving payment of interest on FCNR (B) deposits shall be rounded off to ____ decimal places:
a 4 decimal points b 3 decimal points c 2 decimal points d at bank discretion
154 A term deposit matured on July 12, being Sunday. It is presented for payment by the customer on Jul 13. The contracted rate
of interest is 8.5%. Bank changed the interest rate to 8% from Jul 11. In this connection which of the following option is
appropriate? - a bank shall pay interest till Jul 12 at 8.5% b bank shall pay interest till Jul 12 at 8.0%
c bank shall pay interest till Jul 13 at 8.5% d bank shall pay interest till Jul 13 at 8.0%
155 On credit balance of which of the following current account, the bank shall not pay interest in case of death of the customer:
a individual account of X b proprietorship account of Z, c joint account of P and Q d all the above
156 Interest on domestic rupee savings deposits shall be calculated on a daily product basis and a uniform interest rate shall be
set on balance up to _____ , irrespective of the amount in the account within this limit:
a Rs.10000 b Rs.50000 c Rs. 1 lac d Rs.10 lac
157 On domestic rupee savings deposits, banks can pay differential rates of interest for any end-of-day savings bank balance
____: a of Rs.1 lac and above b exceeding Rs.1 lac c of Rs.15 lac and above d exceeding Rs.15 lac
158 All term deposits accepted from individuals (held singly or jointly) for amount of ____ must have premature-withdrawal-
facility.- a Rs.15 lac or below b less than Rs.15 lac c Rs.1 cr or above d less than Rs.1 cr
159 Banks can offer term deposits of without pre-mature withdrawal facility, on which they can offer differential rate of interest?
- a Rs.15 lac or above b above Rs.15 lac c Rs.1 cr or above only d above Rs.1 cr only
160 If a Term Deposit matures and proceeds are unpaid, the amount left unclaimed with the bank shall attract rate of interest as
applicable to ____: a FD on date of maturity b FD on date of original contract c saving bank d no interest
161 Interest on savings deposit shall be credited by banks at ____ :
a monthly or shorter intervals b quarterly or shorter intervals c half-yearly or shorter intervals d at discretion of banks
162 Interest on the minimum credit balance in the composite cash credit account of a farmer during the period from the ____ of
each calendar month shall be paid- a 10th to the last day b 1st to the last day c daily balance product d at bank discretion
163. Banks can offer inexpensive gifts at the time of accepting deposits, costing not more than ____ , to the depositor as per
Indian Banks’ Association.- a Rs.1000 b Rs.500 c Rs.250 d Rs.100
164. As per RBI guidelines, the banks should impose ‘partial freezing’ on KYC non-compliant accounts in a phased manner. Partial
freezing after the first 6 months period, includes: a transactions at the discretion of the bank
b only credits to be permitted, c only debits to be permitted, d no debit and no credit to be permitted
165 What is the minimum maturity period of a commercial paper ?-
a 7 days, b 15 days, c 29 days, d 45 days, e 60 days
166. In order to ensure that a coloured photo copy or scanned coloured image of the cheque is not used, which of the following
features is included in the cheque under CTS 2010 standards?
a ultra-violet ink, b intaglio, c void pantograph, d UV enabled scanning
167. What is the minimum value of stock of gold coins, bullion and foreign securities, which RBI has to maintain at any point of
time, against issue of currency?- a Rs.200 cr, b Rs.215 cr, c Rs.115 cr, d Rs.500 cr, e Rs.1000 cr
168. While renewing the working capital limits of a partnership firm, the loan officer observes that the long terms uses are 25%
more than the long terms sources during the previous year. This will lead to:
a improvement in the debt equity ratio, b deterioration in debt equity ratio, c deterioration in current ratio
d improvement in current ratio, e improvement in debt service coverage ratio
169. If the current assets are 36 and net working capital is 12, what is the current ratio:
a 1.17:1 b 1.25:1, c 1.33:1 d 1.50:1
170. Which of the following instruments represents the share in Indian companies in India and traded in America/Europe?
a GDR/ADR, b IDR/ADR, c GDR/IDR, d Zero Coupon Bonds, e. Debentures
171. Pensioners can submit physical life certificate in the month of November each year at:
a same bank branch where pension account is maintained b any bank branch of any bank
c any branch of the bank where pension account is maintained d none of the above is correct
172. RBI has advised banks that they should be provided cheque book with min ___ leaves, free of charge, in saving bank accounts,
in a financial year: a . 10, b. 20 c. 25 d. 50
173 A fully KYC compliant account should be converted in to based on the date of birth available on record of the bank, if the
customer attains age of 60.
a Senior Citizen Account b Special Care Account c Special facilities account d Privileged account
174 For senior citizens of ____ years of age, banks are required to make concerted effort to provide basic banking facilities, at the
premises/ residence of such customers. -
a 60 years or more b more than 70 years c more than 75 years d more than 80 years
175 Under simplified hedging facility introduced by RBI in November 2017, for resident and non-resident entities, the cap on
outstanding contracts is: a USD 15 million b USD 25 million c USD 30 million d USD 45 million
176 Under simplified hedging facility introduced by RBI in November 2017, if hedging requirement of the user exceeds the limit in
course of time, the designated bank may re-assess and, at its discretion, extend the limit up to ___% of the stipulated cap.
a 5 0 % b 7 5 % c 100 % d 150%
177 Under simplified hedging facility introduced by RBI in November 2017, resident unlisted companies can use such structures only if
they have a minimum net worth of Rs.___crores
a Rs.100 cr b Rs.200 cr c Rs.300 cr d Rs.500 cr
178 Legal Entity Identifier (LEI) code is conceived as a key measure to improve the quality and accuracy of financial data systems for
better risk management, post the Global Financial Crisis. LEI is a ____ digit unique code
a 10 digit b 12 digit c 15 digit d 20 digit
179 RBI has decided to introduce, Legal Entity Identifier (LEI) system for all borrowers of banks having total fund based and non-
fund based exposure of
_____ in a phased manner- a Rs.1 cr and above b Rs.5 cr and above c Rs.50 cr and above d Rs.100 cr and above
180 Under RBI time schedule for introduction of Legal Entity Identifier (LEI) system for all borrowers of banks, the borrowers
with exposure of Rs.1000 cr and above are to obtain LEI by: - a 31.12.17 b 31.03.18 c 30.06.18 d 31.12.18
181 As per RBI directives, what is the minimum amount of withdrawal from or deposit into currency chest?
a Rs.20000 b Rs.50000 c Rs.100000 d Rs.200000
182 The currency chests should invariably report all transactions through ICCOMS on the same day to the Issue Offices latest by
____ : a 11 pm b 8 p m c 6 p m d 5 p m
183 Soiled note remittances to RBI / diversion to other currency chest/ s should not be shown as withdrawal by chest/s / link
offices. In case such remittances are wrongly reported as ‘withdrawals’, a penalty of ____ will be levied irrespective of the value of
remittance and period of such wrong reporting. - a Rs.20000 b. Rs.50000 c Rs. 100000 d. Rs. 200000
184 Penal interest shall be levied at the rate of ___ over the prevailing Bank Rate for the period of delayed reporting/wrong
reporting/non-reporting /inclusion of ineligible amounts in currency chest balances. - a. 5% b. 35 c. 2% d. 1%
185 With effect from the fortnight commencing Oct 14, 2017, the rate of statutory liquidity ratio (SLR) is ____ of net demand and
time liabilities: a 19.5% b 19.75% c 2 0 % d 20.25%
186 According to Section 215 of Insolvency and Bankruptcy Code (IBC), 2016, a financial creditor like a bank, is required to submit
financial information and information relating to assets in relation to which any security interest has been created, to : a Reserve
Bank of India b Information Utilities c Financial Intelligence Unit-India d Credit Information Companies
187.The Insolvency and Bankruptcy Board of India (IBBI) has appointed as the first Information Utility under the IBBI (IUs) Regulations,
2017. a Legal Entity Identifier India Limited b CERSAI c National E-Governance Services Limited d CIBIL
188. Under Insolvency and Bankruptcy Code 2016, for insolvency resolution, the default amount should be minimum:
a Rs.100000 b Rs.200000 c Rs.500000 d Rs.1000000
189.Under Insolvency and Bankruptcy Code 2016, for insolvency resolution, the case can be filed with:
a Distt. Court b High Court c Debt Recovery Tribunal d National Company Law Tribunal
190. There are 4 pillars under Insolvency and Bankruptcy Code 2016. Which of these has not been stated correctly.
a Insolvency and Bankruptcy Board of India b National Company Law Tribunal
c Credit Information companies d Insolvency Resolution Professionals
191. Under Insolvencyand Bankruptcy Code 2016, what is the time limit available with the financial creditor to take a
decision on insolvency resolution plan, with permission from NCLT? - a 90 days b 180 days c 270 days d 360 days
192.For making a reference to NCLT under Insolvency and Bankruptcy Code 2016, what %age of creditor should give their
consent: a 50% creditor by voting right b 75% creditor by voting right c 75% creditor by value d 50% creditor by value
193 Under Insolvency and Bankruptcy Code 2016, if a case is referred to NCLT and the creditors do not take any decision on the
resolution plan, what is further course of action? a NCLT will reject the case b NCLT will order the liquidation c Case will be
referred to High Court d Case will be referred to Supreme Court
194. What is the limit for investment by Foreign Portfolio Investors for the quarter January – March 2018 for investment Central
Government Securities? a INR 64 billion b INR 58 billion c INR 55 billion d INR 49 billion
195. What is the limit for investment by Foreign Portfolio Investors for the quarter January – March 2018 for investment in State
Development Loans (SDLs)? a INR 64 billion b INR 58 billion c INR 55 billion d INR 49 billion
196. What is e-Kuber? a digital payment system operated by Mumbai Stock Exchange
b digital payment system operated by Stock Holding Corporation of India
c digital payment system operated by RBI d payment and settlement system operated by Clearning Corporation of India
197. The maximum merchant discount rate (MDR) for small merchants at physical POS can be 0.40% with a maximum of:
a Rs.100 b Rs.200 c Rs.500 d Rs.1000
198. The maximum merchant discount rate (MDR) for other merchants at physical POS can be 0.40% with a maximum of:
a Rs.100 b Rs.200 c Rs.500 d Rs.1000
199.How much amount of agricultural credit to farmers has been proposed in the Union Budget 2017-18?
a) Rs. 15 lakh crore , b) Rs. 10 lakh crore c ) Rs. 20 lakh crore d ) Rs. 5 lakh crore
200.According to the Union Budget 2017-18, what is the total allocation made under Pradhan Mantri Mudra Yojana?
a) Rs. 2.44 Lakh crore b) Rs. 1.20 Lakh crore c) Rs. 2.50 Lakh crore d) Rs. 1.75 Lakh crore
Answers
1 C 2 D 3 C 4 B 5 E 6 B 7 C 8 D 9 A 10 D
11 D 12 E 13 C 14 B 15 D 16 E 17 D 18 C 19 E 20 C
21 D 22 B 23 E 24 A 25 B 26 A 27 D 28 E 29 D 30 B
31 D 32 B 33 D 34 E 35 D 36 B 37 B 38 C 39 B 40 C
41 D 42 D 43 A 44 B 45 A 46 B 47 D 48 D 49 C 50 D
51 A 52 B 53 B 54 A 55 D 56 C 57 D 58 C 59 C 60 B
61 A 62 A 63 D 64 C 65 B 66 A 67 D 68 D 69 B 70 A
71 C 72 D 73 A 74 B 75 C 76 C 77 D 78 C 79 B 80 A
81 A 82 D 83 A 84 C 85 C 86 C 87 C 88 B 89 C 90 B
91 C 92 B 93 C 94 A 95 C 96 C 97 B 98 C 99 A 100 C
101 B 102 C 103 A 104 A 105 C 106 B 107 C 108 C 109 D 110 B
111 C 112 C 113 A 114 D 115 C 116 D 117 B 118 B 119 C 120 D
121 B 122 C 123 A 124 B 125 D 126 A 127 B 128 B 129 B 130 C
131 C 132 B 133 A 134 D 135 A 136 D 137 B 138 B 139 A 140 A
141 B 142 B 143 C 144 C 145 B 146 C 147 C 148 C 149 B 150 D
151 A 152 C 153 C 154 C 155 C 156 C 157 B 158 A 159 B 160 C
161 B 162 A 163 C 164 D 165 A 166 C 167 C 168 C 169 D 170 A
171 C 172 C 173 A 174 B 175 C 176 D 177 B 178 D 179 B 180 B
181 C 182 A 183 B 184 C 185 A 186 B 187 C 188 A 189 D 190 C
191 B 192 B 193 B 194 A 195 B 196 C 197 B 198 D 199 B 200 A
LATEST BANKING & FINANCE –PART-1

1) Keeping in view the greater role envisaged for Asset Reconstruction Companies (ARCs) in resolving stressed assets as also the
recent regulatory changes governing sale of stressed assets by banks to ARCs, the Reserve Bank has decided to fix the minimum
Net Owned Fund (NOF) requirement for ARCs at ____ on an ongoing basis.
a) Rs. 50 crore b) Rs. 100 crore c) Rs. 150 crore d) Rs. 200 crore
2) All the Asset Reconstruction Companies (ARCs) which are already registered with the Reserve Bank and not having the revised
minimum NOF as on date shall achieve a minimum NOF of Rs.100 crore latest by _______.
a) March 31, 2018 b) July 31, 2018 c) March 31, 2019 d) July 31, 2019
3) The Reserve Bank has permitted all licensed co-operative banks having their own ATM network to issue _______, provided
there are no restrictions on acceptance or repayment of deposits. This is subject to the compliance with eligibility criteria and
other guidelines as prescribed by Department of Payment and Settlement Systems (DPSS), Reserve Bank of India from time to
time.
a) Open PPI’s b) Semi open PPI’s c) Closed PPI’s d) Semi-closed PPIs
4) The Reserve Bank has permitted Co-operative banks to issue Open System Prepaid Instruments (PPIs). As per the regulatory
requirement in this regard, the bank should be Core Banking Solution (CBS) compliant and Capital to Risk (Weighted) Assets Ratio
(CRAR) should not be less than ___ in the current and preceding financial year. - a) 7% b) 8% c) 9% d) 10%
requirement in this regard, Gross NPAs should be less than ___ and net NPAs should not be more than ___ in the current and
preceding financial year- a) 6%; 3% b) 7%; 3% c) 7%; 4% d) 8%; 3%
requirement in this regard Assessed net-worth of the bank should be more than _____ as per the last RBI inspection.
a) Rs.25 cr b) Rs.30 cr c) Rs.35 cr d) Rs. 50 cr
7) The Reserve Bank has permitted Co-operative banks to issue Open System Prepaid Instruments (PPIs) subject to the fulfillment
of which of the following criteria?
a) There should not be any default in the maintenance of CRR/SLR during the current and preceding financial year;
b) The bank should have made a net profit in the preceding financial year;
c) No monetary penalty should have been imposed on the bank in last two financial years and during the year of submitting
the application;
d) The bank shall have satisfactorily implemented a comprehensive Board approved policy on Customer grievance redressal
mechanism which includes escalation matrix for resolution of customer complaints. d) Allofthese.
8) The Reserve Bank has decided that all Co-operative banks, not intending to act as Point of Sale (POS) acquiring bank are
permitted to deploy third party POS terminals without prior approval of Reserve Bank subject to the condition that the bank’s
Capital to Risk (Weighted) Assets Ratio (CRAR) should not be less than _____ in the preceding financial year.
a) 7% b) 8% c) 9% d) 10%
9) The Reserve Bank has decided that all Co-operative banks intending to act as POS acquiring bank are permitted to deploy their
own POS terminals with prior approval of the Reserve Bank subject to the bank fulfilling which of the following conditions:
a) Assessed net-worth should be more than Rs.25 crore as per the last Reserve Bank inspection;
b) Gross NPAs should be less than 7 per cent and net NPAs should be less than 3% in the preceding financial year;
c) There should not be any default in the maintenance of CRR/SLR during the preceding financial year;
d) The bank should be a member of authorized card network, such as RuPay, Visa, MasterCard etc. e) All of the above.
10) The Reserve Bank has introduced additional settlements in the National Electronic Funds Transfer (NEFT) system at ______
intervals to enhance the efficiency of the system and add to customer convenience.
a) Half-hourly b) 45 Minutes c) Hourly d) Two hourly
11) To speed up the funds transfer process and provide faster credit to the destination accounts, RBI has decided to introduce 11
additional settlement batches during the day thus taking the total number of half hourly settlement batches during the day to
______. a) 21 b) 22 c) 23 d) 24
12) The Reserve Bank has extended the last date, from May 31, 2017 to , for entities undertaking billing
business under the current scope of Bharat Bill Payment System (BBPS), to either become an agent of an authorised Bharat Bill
Payment Operating Units (BBPOUs) or exit the business of bill payments.
a) December 31, 2017 b) March 31, 2018 c) June 20, 2018 d) December 31, 2018
13) With regard to the recent developments on withdrawal of legal tender status of Specified Bank Notes (SBN) and the focus on
going digital, the RBI has revised the policy on conduct of camps by Financial Literacy Centres (FLCs) and rural branches of the
banks. Rural bank branches are henceforth required to conduct only one financial literacy camp per month i.e., on the _____
rd
Friday of each month after branch hours.- a) 1st b) 2nd c) 3 d) 4th
14) Financial Literacy Centres (FLCs) and rural branches of banks are eligible for funding support for the financial literacy camps to
the extent of _ of the expenditure of the camp subject to a maximum of _____ per camp. The revised reporting formats will be
effective from the quarter ending June 30, 2017. a) 60%; Rs.15,000 b) 50%; Rs. 10,000 c) 65%; Rs.18,000, d) 60%; Rs. 10,000
15) With a view to providing operational flexibility to multinational entities and their Indian subsidiaries exposed to currency risk
arising out of current account transactions emanating in India, the Reserve Bank has amended the existing hedging guidelines. As
per the new guidelines, the products include:
a) All Foreign Currency - Indian National Rupee (FCY-INR) derivatives
b) Over the counter derivatives (OTC)
c) Exchange Traded derivatives that the Indian subsidiary is eligible to undertake d) All of these.
16) With respect to amended operational guidelines about terms and conditions for hedging, the transactions under this facility
will be covered under a tripartite agreement involving which of the following:
i) The Indian subsidiary ii) Its non-resident parent / treasury
iii) The AD bank. Iv) The International Swaps and Derivatives Association (ISDA)
a) Only (i),(ii) & (iv) b) Only (ii), (iii) & (iv) c) Only (i), (ii) & (iii) d) All from (i) to (iv)
17) The Reserve Bank has amended the Foreign Exchange Management (Transfer or issue of Security by a Person Resident
outside India) guidelines under which a person resident outside India (other than a citizen of Pakistan or Bangladesh) or an
entity incorporated outside India (other than an entity in Pakistan or Bangladesh), not being a Foreign Portfolio Investor or
Foreign Institutional Investor or Foreign Venture Capital Investor registered in accordance with SEBI guidelines, may contribute
foreign capital either by way of capital contribution or by way of acquisition / transfer of profit shares in the capital structure
of a :
a) Limited Liability Partnership (LLP) b) Public Private Partnership (PPP) c) Unlimited Liability Partnership d) None of these.
18) FDI in an LLP either by way of capital contribution or by way of acquisition / transfer of profit shares, would have to be the
fair price as worked out with any valuation norm which is internationally accepted / adopted as per market practice and a
valuation certificate to that effect shall be issued by the Chartered Accountant or by a practicing Cost Accountant or by an
approved valuer from the panel maintained by the Central Government.- a) less than or equal to b) more than or equal to c) less
than d) more than
19) In case of transfer of capital contribution / profit share from a resident to a non-resident, the transfer shall be for a
consideration _______the fair price of capital contribution / profit share of an LLP.
a) less than or equal to b) more than or equal to c) more than d) less than
20) In case of transfer of capital contribution / profit share from a non-resident to resident, the transfer shall be for a
consideration which is the fair price of the capital contribution / profit share of an LLP.
a) less than or equal to b) more than or equal to c) more than d) less than
21) All LLPs which have received FDI in the previous years including the current year shall submit to the Reserve Bank, on or
before the _______of each year, a report titled ‘Annual Return on Foreign Liabilities and Assets’ as specified by the Reserve Bank
from time to time. a) 15th day of January b) 15th day of April c) 15th day of July d) 15th day of October
22) The Reserve Bank has amended the Foreign Exchange Management (Transfer or Issue of Security by a Person Resident outside
India) Regulations, 2000 and with respect to B2B E-commerce activities and market place model of e-commerce the percentage of
equity/FDI Cap has been fixed at _____ with automatic entry route.- a) 75% b) 85% c) 95% d) 100%
23) As per amended Foreign Exchange Management (Transfer or issue of Security by a Person Resident outside India)
Regulations, 2000, an e-commerce entity will not permit more than _____ of the sales value on financial year basis affected
through its marketplace from one vendor or their group companies.- a) 10% b) 25% c) 30% d) 45%
24) The RBI has revised PCA framework. Which of the following is not a salient feature of PCA guidelines:
a)Capital, asset quality and profitability continue to be the key areas for monitoring in the revised framework;
b)Indicators to be tracked for capital, asset quality and profitability would be Capital to Risk (Weighted) Assets Ratio (CRAR)/
Common Equity Tier- I ratio, Net NPA ratio and Return on Assets, respectively;
c)Leverage would be monitored additionally as part of the PCA framework;
d)Breach of any risk threshold would result in invocation of PCA; e)None of the above.
25) The RBI has decided that the limit for Ways and Means Advances (WMA) for the second quarter (Q2) of the financial year
2017-18 (July 2017 - September 2017) will be at Rs. ___ crore. The RBI may trigger fresh floatation of market loans when the
Govt. utilises ____ per cent of the WMA limit. - a) 70,000; 75 b) 70,000; 50 c) 50,000;75 d) 50,000;50
26) The Reserve Bank of India has conveyed to all banks that Income Tax Department has brought about certain changes in
the Annual Information Return (AIR). Which of the following is not correct w.r.t. the guidelines:
a) Name of the AIR has been changed as Statement of Financial Transaction.
b) Limit of amount has been changed from Rs. 5 lakh or more to Rs.10 lakh or more in a Financial Year.
c) Date of filing has been changed from August 31 of the immediately following Financial Year to May 31. d) None of the
above.
27) The US central bank Federal Reserve has raised its benchmark interest rate by _______ for only the third time in a decade.
a) 0.25% b) 0.50% c) 0.75% d) 1%
28) The Marginal Standing facility (MSF) is a window for banks to borrow from the RBI in an emergency situation when inter-
bank liquidity dries up completely. The present MSF is: - a) 5.50 percent b) 5.75 percent c) 6.25 percent d) 6.50 % e)
6.75 percent
29) The RBI recently clarified that currency notes with certain scribbles are legal tender and if any bank branch refuses to
exchange soiled notes, the bank will have to pay a penalty of : a) Rs. 2,000 b) Rs. 5,000c) Rs.10,000 d) Rs. 20,000 e) Rs. 25,000
30) According to the first advance estimates of GDP for 2016-17, released by the Central Statistics Office (CSO), the economic
growth in the country is expected to be: a) 7 percent b) 7.1 percent c) 6.7 percent d) 6.9 percent e) 7.3
percent
ANSWERS
1 B 2 C 3 D 4 D 5 B
6 A 7 E 8 C 9 E 10 A
11 C 12 A 13 C 14 A 15 D
16 C 17 A 18 B 19 B 20 A
21 C 22 D 23 B 24 E 25 A
26 D 27 A 28 E 29 C 30 B
LATEST BANKING & FINANCE –PART 2

1) The Reserve Bank of India, in its fourth Bi-monthly Monetary Policy Statement has decided to keep the policy repo rate
under the liquidity adjustment facility (LAF) unchanged at ____: a) 6% b) 5.75 % c) 5.50% d) 5%
2) As per fourth Bi-monthly Monetary Policy Statement, the reverse repo rate under the LAF remains at ______, and the
marginal standing facility (MSF) rate and the Bank Rate at
______:
a) 5.75%; 6% b) 5.75%; 6.25%
c) 6.25%; 6.50% d) 6.50%; 6.25%
3) The Reserve Bank in its fourth Bi-monthly policy has reduced the statutory liquidity ratio (SLR) by 50 basis to ____ of banks’
net demand and time liabilities (NDTL) from the fortnight commencing October 14, 2017.
a) 19.50% b) 19.75% c) 20% d) 20.25%
4) The ceiling on SLR securities under ‘Held to Maturity’ (HTM) will also be reduced from 20.25 per cent to 19.50 per cent of
banks’ NDTL in a phased manner i.e. _____ by December 31, 2017 and ______ by March 31, 2018.
a) 20.25%; 19.50% b) 20%; 19.50% c) 19.75%; 19.25% d) 19.50%; 19%
5) The Reserve Bank has advised banks to make it mandatory for corporate borrowers having aggregate fund-based and non-
fund based exposure of _____and above from any bank, to obtain Legal Entity Identifier (LEI) registration and capture the
same in the Central Repository of Information on Large Credits (CRILC).- a) Rs.3 crore b) Rs.4 crore c) Rs.5 crore d) Rs. 6
crore
6) The Reserve Bank has decided to put in place a framework for authorisation of ETP for financial market instruments
regulated by the Reserve Bank. Expand ETP.
a) Electronic Transaction Platform b) Electronic Trading Platform c) Emerging Trading Platform d) Electronic Trading Password
7) As a part of the measures proposed for development of the state market borrowing programme, SDL (State Development
Loans) auctions will be conducted on a _____ basis and the auction results will be announced latest by 3.00 PM on the same
day.
a) Daily b) Weekly c) Fortnightly d) Monthly
8) As per extant instructions, banks may shift investments to / from held to maturity (HTM) to Available for sale (AFS) / held for
trading (HFT). Such transfer to the extent required to reduce the SLR securities in HTM category in accordance with the
regulatory instructions, would be excluded from the ____ prescribed for value of sales and transfers of securities to / from HTM
category.
a) 4% b) 5% c) 6% d) 7%
9) The Reserve Bank has set up a High-level Task Force on Public Credit Registry (PCR) for India under the chairmanship of Shri
Y. M. Deosthalee. Which of the following are the terms of reference of the Task Force?
a) To review current availability of information on credit in India;
b) To assess the gaps in India that could be filled by a comprehensive PCR;
c) To determine the scope / target of the comprehensive PCR: type of information to be covered along with cut-off size of
credit, if any;
d) To suggest a roadmap, including the priority areas, for developing a transparent, comprehensive and near-real time PCR for
India. e) All of the above.
10) The Reserve Bank has clarified that, in applicable cases, linkage of Aadhaar number to bank account is mandatory
under the ______________:
a) Payment and Settlement Systems Act, 2007 b) Prevention of Money-laundering Second Amendment Rules 2017
c)RBI Act, 1934 d) Banking Regulation Act, 1949
11) To hedge the currency risk arising out of genuine trade transactions involving exports from and imports to India, invoiced in
Indian Rupees, with AD Category I banks in India, the Reserve Bank has permitted the central treasury (of the group and being a
group entity) of non-residents (Persons Residents outside India) to undertake hedges for and behalf of such non-residents with
banks in India as per the existing Model I and Model II.
a) AD Category I banks b) AD Category II banks c) AD Category III banks d) All of these.
12) The Reserve Bank has permitted the central treasury of nonresidents to undertake hedges for and behalf of such non-
residents with AD Category I banks in India as per the existing Model I and Model II. Under which of the following models, the
Non-resident exporter / importer or its central treasury deals through their overseas bank (including overseas branches of AD
banks in India). - a) Model I b) Model II c) Model III d) None
13) The AD Category I banks can opt for either Model I or Model II. The Reserve Bank has permitted the central treasury of
non residents to undertake hedges for and behalf of such non-residents with AD Category I banks in India as per the
existing Model I and Model II. Under which of the following models, the Non-resident exporter / importer or its central
treasury deals directly with the AD bank in India. - a) Model I b) Model II c) Model III d) None
14) As per the scheme, with regard to penalties to be imposed on banks for deficiencies in exchange of notes and
coins/remittances sent to the Reserve Bank/operations of currency chests, the Shortage in soiled note remittances and currency
chest balances would be penalised by ____ per piece for notes in denomination upto ____ in addition to the loss.
a) Rs.50 b) Rs.100 c) Rs.200 d) All of the above
15) As per the scheme, with regard to penalties to be imposed on banks for deficiencies in exchange of notes and
coins/remittances sent to the Reserve Bank / operations of currency chests, for notes in denomination of ____and above,
the penalty would be equal to the value of the denomination per piece in addition to the loss.
a) Rs. 100 b) Rs. 200 c) Rs. 500 d) None of these
16) As per the scheme with regard to penalties to be imposed on banks for deficiencies in exchange of notes and
coins/remittances sent to the Reserve Bank/operations of currency chests, the shortages of ____pieces and above per
remittance shall be debited immediately. Penalty may be levied on reaching a limit of pieces in a cumulative manner.
a) 50 b) 100 c) 150 d) 200
17) The Reserve Bank has stated in its scheme of Penalties that for mutilated notes detected in soiled note remittances and
currency chest balances, the penalty would be _____ per piece irrespective of the denomination.
b) a) Rs.150 b) Rs.100 c) Rs.50 d) Rs.25
18) The Reserve Bank has stated in its scheme of Penalties that Mutilated notes of 100 pieces and above per remittance shall
be debited immediately. Penalty may be levied on reaching a limit of ____ pieces in a cumulative manner.
a) 150 b) 100 c) 50 d) 25
19) In case of non-compliance with operational guidelines by currency chests detected by the Reserve Bank officials in (a) non-
functioning of CCTV, (b) branch cash/documents kept in strong room and (c) non-utilisation of note sorting machines (NSMs)
for sorting of notes, penalty would be of ______ for each irregularity. Penalty will be enhanced to _____ in case of repetition
and will be levied immediately. a) Rs. 5,000; Rs.10,000 b) Rs. 6,000; Rs.12,000 c) Rs. 7,500; Rs.15,000 d) Rs. 8,000;
Rs.16,000
20) For violation of any term of agreement with the Reserve Bank (for opening and maintaining currency chests) or deficiency in
service in providing exchange facilities, as detected by the Reserve Bank officials, the penalty would be Rs.10,000 for each
instance of violation and _____ in case there are more than five instances of violation of agreement/deficiency in service by the
branch. The levy of such penalty will be placed in public domain.- a) Rs. 2 lakh b) Rs. 3 lakh c) Rs.4 lakh d) Rs.5 lakh
21) With a view to sustain efforts and ensure discipline among the banks on timely and accurate reporting of currency chest
transactions, the Reserve Bank has advised that the currency chests should invariably report all transactions through
ICCOMS on the same day by ______ by uploading data through the Secured Website (SWS) to their respective link offices
and Link offices should invariably report the consolidated position to the Issue Offices latest by ____ on the same day.
a) 7 PM;9 PM b) 8 PM;10 PM c) 9 PM;11 PM d) 10 PM;11 PM
22) The Reserve Bank has further advised that the Sub-Treasury Offices (STOs) should report all transactions directly to the Issue
Office of the Reserve Bank by ____ on the same day. a) 8 PM b) 9 PM c) 10 PMd) 11PM
23) It has been stated that soiled note remittances to the Reserve Bank / diversion to other currency chests should not be
shown as withdrawal by chests / link offices. In case such remittances are wrongly reported as ‘withdrawals’, a penalty of _____
would be levied irrespective of the value of remittance and period of such wrong reporting.
a) Rs.25,000 b) Rs.50,000 c) Rs.75,000 d) Rs.1,00,000
24) The Reserve Bank of India has advised State Level Banker’s Committee (SLBCs) Convenor banks to review and identify the
unbanked rural centres (URCs) in villages with population above , in light of the revised guidelines
on rationalisation of branch authorisation policy and ensure that such unbanked rural centres in villages if any, are banked by
opening of Core Banking Solution (CBS) enabled banking outlet- a) 5,000 b) 10,000 c) 20,000 d) 25,000
25) As per the revised guidelines, minimum original maturity period for Masala Bonds raised upto USD 50 million equivalent in
INR per financial year should be ____ years and for bonds raised above USD 50 million equivalent in INR per financial year
should be ___ years. Further, the all-incost ceiling for such bonds will be ____ basis points over the prevailing yield of the Govt.
of India securities of corresponding maturity.- a) 2;5;300 b) 3;5;300 c) 3;5;500 d) 2;4;500
26) The RBI has increased the quantum of loan that could be granted by RRBs under the scheme, from Rs.1 lakh to Rs. 2
lakh subject to the stipulated conditions. Which of the following condition is incorrect?
a) The period of the loan shall not exceed 12 months from the date of sanction;
b) Interest will be charged to the account at monthly rests but will become due for payment along with principal only at the
end of 12 months from the date of sanction;
c) Regional Rural Banks (RRBs) should maintain a Loan to Value (LTV) ratio of 75 per cent on the outstanding amount of loan
including the interest on an ongoing basis, failing which the loan will be treated as a Non Performing Asset.
d) None of the above.
27) Which city retained its number one position in the annual city governance ranking, according to the Annual Survey of
India’s City- System (ASICS)?- a) Chandigarh b) Bengaluru c) Bhubaneswar d) Kolkata e)
Thiruvananthapuram
28) The Union Finance Ministry has agreed in principle to allow public sector banks to offer ESOPs to their employees
from 2017-18. The term ESOPs stands for ____________ :
a) Employee Stock Option Plans
b) Employees Share Option Plans c)) Employee Service Option Plans d) Employee Salary Option Plans e) None of these
29) The GST Council has approved the draft CGST and IGST Bills. The letter ‘C’ in the term CGST stands for ‘Central’ while the
letter ‘I’ in the term ‘IGST’ stands for: a) Independent b) Initial c) Intermediate d) Integrated e) Infrastructure
30) What threshold has been set by the RBI above which non-banking finance companies (NBFCs) can disburse loans against
gold only by cheque?- a) Rs.5,000 b) Rs.10,000 c) Rs.15,000 d) Rs.20,000 e) Rs.25,000
31) What is the full form of the term IMPS, an instant interbank electronic fund transfer service? a) Interbank
Payment Service b) Instant Payment Service c)Immediate Payment Service d) International Payment service e) None
32) The banking system of which country is now the biggest in the world according to the Financial Times?
a) India b) Russia c) Japan d) China e) South Korea
33) Which of the following banks topped the list of banks that witnessed most number of frauds during April- Dec period of
2016 as per the RBI data? - a) HDFC Bank b) Standard Chartered c) SBI d) ICICI Bank e) Axis Bank
34) The fiscal deficit is the difference between the govt’s expenditures and its revenues (excluding the money borrowed) which
is usually communicated as a percentage of its GDP. What is India’s fiscal deficit target for the financial year 2016-17?
a) 3% of GDP b) 3.1% of GDP c) 3.3% of GDP d) 3.5% of GDP e) 3.9 of GDP
nd
35) The Central Statistical Organization (CSO) has released the 2 Advance Estimates of National Income, 2016-17 and
quarterly estimates of GDP. The CSO has pegged advance GDP growth estimate for 2016-17 at 7.1 percent.
a) 6.9% b) 7.1% c) 7.3% d) 7.5%
36) The Growth of Real Gross Value Added (GVA) at basic prices in 2016-17 is estimated at __ against 7.8% in 2015-16.
a) 6.7% b) 7.3% c) 7.5% d) 7.7%
37) The Real GDP in 2016-17 is likely to attain a level of Rs. 121.65 lakh crore as against the first revised estimate of Rs.
_______ of 2015-16. - a) 113.58 lakh crore b) 120.63 lakh crore c) 131.58 lakh crore d) 135.18 lakh crore
38) The Per Capita net national income at current price during 2016-during 2016-17 is estimated to be ______ showing a rise of
10.2 percent compared to 94,178 rupees during 2015-16. a) 1.07 lakh b) 1.05 lakh c) Rs.1.03 lakh d) 1 lakh
39) The digital banking initiative ‘811’ offers a zero balance savings account with zero charges for all digital transactions to the
customers. This new initiative has been launched by: a) Axis Bank b) Federal Bank c) Induslnd Bank d) Kotak Mahindra
Bank
40) Which of the following is a window for banks to borrow from the RBI pledging govt. securities in an emergency situation when
interbank liquidity dries up completely and there is volatility in the overnight interest rates?
a) Repurchase rate b) Marginal Standing Facility c) Base rate d) Reverse repo rate
41) The money which is borrowed or lent in the money market for a period of more than 14 days, is termed as
a) Hot Money b) Call Moneyc) Term Money d) Notice Money e) Cold Money
42) The RBI recently proposed to float Wholesale and Long Term Finance (WLTF) banks, for which the minimum capital required
would be: - a) Rs.100 cr b) Rs.500 cr c) Rs.1,000 cr d) Rs.2,000 cr e) Rs.5,000 cr
43) Which bank has launched a unique credit card ‘Unnati’ for which any customer with a balance of a least Rs. 25,000 in his
savings account with the bank would be eligible?- a) HDFC Bank b) ICICI Bank c) Axis Bank d) SBI e) PNB
44) The ‘digibank’ is an entire bank squeezed to fit into smartphone. It is powered by DBS Bank, which is headquartered in:
a) Singapore b) Shanghai c) London d) Paris e) Stockholm
45) The State Bank of India offers a wide bouquet of technology products and services to its customers. Which of the following is
not associated with the SBI?- a) Mingle b) Payzapp c) Buddy d) Pehli Udaan e) None of these
46) SBI General Insurance Company is a joint venture between the SBI and Insurance Australia Group (IAG) in which respective
ownerships of SBI and IAG are:
a) 74 percent, 26 percent b) 51 percent, 49 percent c) 50 percent, 50 percent d) 26 percent, 74 percent e) 85%, 15 %
47) The Bank Boards Bureau (BBB) has evolved GRAF for public sector banks to ensure that they have the ability to compete with
other banks. The term GRAF stands for:
a) Governance, Reward and Accessibility Framework
b) Governance, Reward and Accountability Framework
c) Governance, Reward and Availability Framework
d) Governance, Reward and Affordability Framework e) None of these
48) For the fiscal year 2017-18, what target for loans under Pradhan Mantri Mudra Yojana has been announced in the Union
Budget?
a) Rs.1.85 lakh cr b) Rs.1.98 lakh crc) Rs.2.44 lakh cr d) Rs.2.12 lakh cr e) Rs.3.14 lakh cr
49) Mukulita Vijayawargiya took charge as whole time Member of the Insolvency and Bankruptcy Board of India (IBBI) recently.
The present chairman of IBBI is:
a) Devender Kumar Sikri b) US Paliwal c) Chandan Sinha d) NS Vishwanathan e) Madhusudan Sahoo
50) The RBI allows the Micro Finance Institutions (MFIs) to lend up to what amount to small borrowers?
a) Rs.30,000 b) Rs.45,000 c) Rs.50,000 d) Rs.75,000 e) Rs.1 lakh
51) The Union Cabinet recently approved PMGDISHA scheme. The scheme will cover six crore rural households to make them:
a) Digitally literate b) Professionally trained c) Physically fit d) Aware about diseases
52) The Fiscal Responsibility and Budget Management (FRBM) committee, headed by former Revenue Secretary NK Singh, has
recommended that the fiscal deficit should be brought down to ____ of the gross domestic product (GDP) by 2023 in a phased
manner.- a) 2.1 percent b) 2.5 percent c) 2.7 percent d) 2.9 percent
53) Considering the recent surge in customer grievances relating to unauthorised transactions resulting in debits to their
accounts / cards, the Reserve Bank has issued revised directions and criteria for determining the customer liability in these
circumstances. A customer will have Zero Liability in case of third party breach where the deficiency lies neither with the bank
nor with the customer but lies elsewhere in the system, and the customer notifies the bank within ____working days of
receiving the communication from the bank regarding the unauthorised transaction. a) 2 b) 3 c) 4 d) 5
54) In cases where the loss is due to negligence by a customer, such as, where he has shared the payment credentials, the
customer will bear the entire loss until he reports the unauthorised transaction to the bank. Any loss occurring after the
reporting of the unauthorised transaction should be borne by the ____. a) Customer b) Bank c) Both d) None of these
55) In cases where the responsibility for the unauthorised electronic banking transaction lies neither with the bank nor with
the customer, but lies elsewhere in the system and when there is a delay of ___to ___ working days after receiving the
communication from the bank on the part of the customer in notifying the bank of such a transaction, the per transaction
liability of the customer should be limited to the transaction value or the amount as prescribed, whichever is lower.
a) 2 to 3 b) 3 to 6 c) 4 to 7 d) 5 to 8
ANSWER
1 A 2 B 3 A 4 B 5 C 6 B 7 B 8 B 9 E 10 B
11 A 12 A 13 B 14 A 15 A 16 B 17 C 18 B 19 A 20 D
21 C 22 D 23 B 24 A 25 B 26 D 27 E 28 A 29 D 30 D
31 C 32 D 33 D 34 D 35 B 36 A 37 A 38 C 39 D 40 B
41 C 42 C 43 D 44 A 45 B 46 A 47 B 48 C 49 E 50 E
51 A 52 B 53 B 54 B 55 C
LATEST BANKING & FINANCE : PART 3

1) As per the Fifth Bi-monthly Monetary Policy Statement, 2017-18,the Monetary Policy Committee (MPC) has decided to keep
the policy repo rate under the liquidity adjustment facility (LAF) unchanged at _____.
a) 5.75% b) 6% c) 6.25% d) 6.50%
2) As per the Fifth Bi-monthly Monetary Policy Statement, 2017-18, the reverse repo rate under the LAF remains at ____and the
marginal standing facility (MSF) rate and the Bank Rate at ____. a) 6%;5.75% b) 5.75%; 6% c) 5.75%;6.25% d) 6%;6.50%
3) As revealed by Monetary Policy Statement, the Surplus liquidity in the system has continued to decline during October and
November. However, Currency in circulation increased by _____in Q3 (up to December 1, 2017) over end-September on festival
demand.- a) Rs.506 bn b) Rs.686 bn c) Rs.700 bn d) Rs.736 bn
4) The Reserve Bank had conducted open market sales of Rs.300 billion in October-November, taking the total absorption of
durable liquidity during the financial year so far to______, comprising _____ the form of open market sales and of long-term
treasury bills under the market stabilisation scheme.
a) Rs. 1.9 trillion; Rs. 900 billion; Rs. 1 trillion
b) Rs. 2.2 trillions; Rs. 200 billion; Rs. 2 trillion
c) Rs. 1.5 trillion; Rs. 500 billion; Rs. 1 trillion d) Rs. 2.5 trillions; Rs. 500 billion; Rs. 2 trillion
5) As per Macro Economic Analysis given by Monetary Policy Committee, Merchandise exports declined by _____in October
2017 after showing positive growth for 14 consecutive months. - a) 2.50% b) 2% c) 1.6% d) 1.1 %
6) India’s foreign exchange reserves were at _____on November 30, 2017.
a) US$ 389.50 billion b) US$ 359.80 billion c) US$ 454.94 billion d) US$ 401.94 billion
7) As per Monetary Policy Statement, inflation is estimated in the range in Quarter 3 and Quarter 4 of current Year
(2017) with risks evenly balanced. - a) 3.5-3.7% b) 4.5-5 % c) 4.3-4.7% d) 5-5.5%
8) As per the Fifth Bi-monthly Monetary Policy Statement, the MPC remains committed to keeping headline inflation close to
___ on a durable basis. - a) 6% b) 4% c) 3% d) 2%
9) Taking into account the twin objectives of promoting debit card acceptance by a wider set of merchants, especially small
merchants, and ensuring sustainability of the business for the entities involved, it has been decided by RBI to rationalise the
MDR for debit cards based on which of the following criteria?
a) Categorisation of merchants on the basis of turnover.
b) Adoption of a differentiated MDR for QR-code based transactions.
d) All of the above.
10) As per the revised instructions for Small Merchants with turnover upto Rs. 20 lakh during the previous financial year with
Physical POS infrastructure including online card transactions, the Merchant Discount Rate (MDR) for debit card transactions (as
a % of transaction value) cannot exceed ____ with MDR cap of Rs. 200 per transaction.
a) 0.40% b) 0.50% c) 0.75% d) 0.90%
11) As per the revised instructions for Other Merchants with turnover above Rs. 20 lakh during the previous financial year with
Physical POS infrastructure including online card transactions, the Merchant Discount Rate (MDR) for debit card transactions (as
a % of transaction value) cannot exceed with MDR cap of Rs. 1000 per transaction.
a) 0.40% b) 0.50% c) 0.75% d) 0.90%
12) As per the revised instructions for Small Merchants with turnover upto Rs.20 lakh during the previous financial year with
QR code-based card acceptance infrastructure, the Merchant Discount Rate (MDR) for debit card transactions (as a % of
transaction value) cannot exceed ____ with MDR cap of Rs.200 per transaction.- a) 0.30% b) 0.50%c) 0.80% d) 0.90%
13) As per the revised instructions for Other Merchants with turnover above Rs.20 lakh during the previous financial year with
transaction value) cannot exceed ____ with MDR cap of Rs. 1000 per transaction.
a) 0.30% b) 0.50% c) 0.80% d) 0.90%
14) The maximum liability of the customer relating to unauthorised transactions resulting in debits to their accounts/ cards in
Basic Saving Bank Deposits (BSBD) accounts is Rs. ______. - a) Rs.5,000 b) Rs.7,000 c) Rs.10,000 d) Rs.12,000
15) The maximum liability of the customer relating to unauthorised transactions resulting in debits to their accounts / cards in
all other SB accounts, Pre-paid Payment Instruments and Gift Cards, Current / Cash Credit / Overdraft Accounts of MSMEs,
Current Accounts / Cash Credit/ Overdraft Accounts of Individuals with annual average balance (during 365 days preceding the
incidence of fraud)/ limit up to Rs. 25 lakh, Credit cards with limit up to Rs. 5 lakh is Rs. _______.
a) Rs.5,000 b) Rs.10,000 c) Rs.15,000 d) Rs.20,000
16) The maximum liability of the customer relating to unauthorised transactions resulting in debits to their accounts/cards in all
other Current / Cash Credit / Overdraft Accounts, Credit cards with limit above Rs.5 lakh is _____.
a) Rs.10,000 b) Rs.15,000 c) Rs.20,000 d) Rs.25,000
17) If the delay in reporting is beyond ____working days, the customer liability should be determined as per the bank’s Board
approved policy. Banks should provide the details of their policy in regard to customers’ liability formulated in pursuance of
these directions at the time of opening the accounts.- a) 3 b) 5 c) 7 d) 10
18) On being notified by the customer, the bank should credit (shadow reversal) the amount involved in the unauthorised
electronic transaction to the customer’s account within _______ working days from the date of such notification by the
customer (without waiting for settlement of insurance claim, if any). - a) 5 b) 7 c) 10 d) 12
19) Banks should ensure that a complaint is resolved and liability of the customer, if any, established within such time, as
may be specified in the bank’s Board approved policy, but not exceeding _____ from the date of receipt of the complaint,
and the customer is compensated as prescribed. - a) 90 days b) 60 days c) 45 days d) 30 days
20) Disha Microfin, Ahmedabad an NBFC MFI registered with the RBI and aimed to provide high-quality financial services
has commenced operations as _ with effect from July 21, 2017.
a) AU Small Finance Bank b) Capital Small Finance Bank c) Equitas Bank d) Fincare Small Finance Bank
21) The Reserve Bank has advised the Chief Executive Officers of Payment Banks to follow certain instructions which state that
Payments Banks are permitted to act as Business Correspondents (BCs) of other banks. Under the BC arrangement and with
prior specific or general consent of the customer, Payment Banks may effect the transfer of funds deposited by a customer into
own account with another eligible bank, so that the balance in the customer’s account with the PB does not exceed _______or
any such lower amount as specified by the customer. - a) Rs. 50,000 b) Rs. 75,000 c) Rs. 1,00,000 d) Rs. 1,20,000
22) The Reserve Bank has advised the Chief Executive Officers of Payment Banks to follow certain instructions
which state that Payments Banks are permitted to act as Business Correspondents (BCs) of other banks. Which of the following
points are correct with respect to these guidelines?
a) At any time, Payment Banks shall not have rights to operate or have real-time access to the funds available in the account of
the customer at any other bank, including the transferee bank. However, as a BC of a bank, PBs may facilitate withdrawals and
transfers by the customer from her account with the bank of which it is the BC.
b) A Payment Bank shall neither arrange nor avail of intraday funding facilities for its customers, based on the balances available
in the customer’s a/c with any other bank, or otherwise.
c) Payment Banks are required to closely monitor the accounts of their customers, to identify and report suspicious
transactions, when the deposit / transaction volumes are not commensurate with the customer’s profile. d) All of these.
23) Which of the following documents could be relied upon for ascertaining the investment in plant and machinery for
classification of an enterprise as Micro, Small and Medium as per clarification issued by the Ministry of MSME, Government of
India and conveyed to RBI?
a) A copy of the invoice of the purchase of plant and machinery;
b) Gross block for investment in plant and machinery as shown in the audited accounts;
c) A certificate issued by a Chartered Accountant regarding purchase price of plant and machinery.
d) Further, the Ministry has clarified that for the investment in plant and machinery for the purpose of classification of an
enterprise as Micro, Small or Medium, the purchase value of the plant and machinery is to be reckoned and not the book value
(purchase value minus depreciation). e) All of these.
24) On a review, the Reserve Bank in consultation with the Financial Inclusion Fund (FIF) Advisory Board has revised
the funding support available to banks to the extent of 60 per cent of the expenditure of the financial literacy camp subject to a
maximum of Rs. _____ per camp. - a) Rs.20,000 b) Rs. 15,000c) Rs.10,000 d) Rs.5,000
25) In order to recalibrate the Medium Term Framework (MTF) for Foreign Portfolio Investors (FPI), investment in
Central Government Securities (G-secs) and State
Government Securities (SDLs) to meet the objective of a preference for long-term investors and also with a view to
manage the macro-prudential implications of evolving capital flows, the MTF has been modified and an overall cap of ____ for
Central Government securities (G-Secs) and ___ for State Development Loans (SDLs) remain unchanged.
a) 8%; 6% b) 7%; 5% c) 5%; 3% d) 4%;2%
26) In order to recalibrate the Medium Term Framework (MTF) for Foreign Portfolio Investors (FPI), future increases in the limit
for FPI investment in Central Government securities will be allocated in the following ratio ____ for ‘Long-Term’ category of FPIs
and ___ for ‘General’ category. - a) 60%; 40% b) 75%; 25% c) 80%; 40% d) 80%; 20%
27) On a review, the Reserve Bank has decided that Non-Banking Financial Companies (NBFCs) with asset size of Rs. 500 crore
and above which comply with the prescribed Capital to Risk weighted Assets Ratio (CRAR) and made net profit in the preceding
financial year be permitted to undertake ______services under Pension Fund Regulatory and Development Authority (PFRDA) for
National Pension System (NPS) after registration with PFRDA.
a) Point of Sale (PoS) b) Point of Presence (PoP) c) Point of Purchase (PoP) d) Point of Service (PoS)
28) As per the clarification received from RBI, which of the following activities do not come under the purview of agency bank
business and are therefore, not eligible for payment of agency commission?
a) Furnishing of bank guarantees/security deposits, etc. through agency banks by government contractors/suppliers, which
constitute banking transactions undertaken by banks for their customers.
b) The banking business of autonomous/statutory bodies/ Municipalities/Corporations/Local Bodies.
c) Payments of a capital nature such as capital contributions/ subsidies / grants made by governments to cover losses incurred
by autonomous / statutory bodies / Municipalities / Corporations/ Local Bodies.
d) Prefunded schemes which may be implemented by a Central Government Ministry/Department (in consultation with
Controller General of Accounts (CGA)) and a State Government Department through any bank. e) All of the above.
29) The Reserve Bank of India has amended the Master Direction on Financial Services provided by Banks. Under the new
directions, no bank should hold more than ______ in the equity of a deposit taking NBFC provided that this does not apply to a
housing finance company.-a) 5% b) 10% c) 15% d) 20%
30) Under the new directions on Financial Services provided by banks, no bank should make an investment of more than 10 per
cent of the unit capital of a Real Estate Investment Trust / Infrastructure Investment Trust subject to overall ceiling of ______ of
its net worth permitted for direct investments in shares, convertible bonds / debentures, units of equity-oriented mutual funds
and exposures to Alternative Investment Funds.-a) 15 % b) 20% c) 25% d) 30%
31) Under the new directions on Financial Services provided by banks, no bank should hold more than 10 per cent of the paid
up capital of a company, not being its subsidiary engaged in non-financial services or 10 per cent of the bank’s paid up capital
and reserves, whichever is lower, provided investments in excess of 10 per cent but not exceeding _______ of the paid up
share capital of such investee company should be permissible under select circumstances. -a) 15 % b) 20% c) 25% d)
30%
32) Under the new directions on Financial Services provided by banks, no bank should hold along with its subsidiaries, associates
or joint ventures or entities directly or indirectly controlled by the bank; and mutual funds managed by Asset Management
Companies (AMCs) controlled by the bank, more than ______ of the paid up share capital of an investee company engaged in
non-financial services. -a) 15 % b) 20% c) 25% d) 30%
33) Under the new directions on Financial Services provided by banks, no bank should make any investment in a ______
Alternative Investment Fund (AIF). Investment by a bank’s subsidiary in a Category III AIF should be restricted to the regulatory
minima prescribed by SEBI. - a) Category I b) Category II c) Category III d) Any of these
34) The Reserve Bank, has advised the commercial banks to ascertain the risks arising on account of equity investments in
alternative investment funds done directly or through their subsidiaries, within the ICAAP framework and determine the
additional capital required which would be subject to supervisory examination as part of Supervisory Review and Evaluation
Process. Expand ICAAP.
a) Internal Capital Adequacy Assessment Process b) Internal Capital Account Assessment Process c) Interim Capital Adequacy
Ascertainment Process d) Initial Capital Account Appraisal Process
35) The Reserve Bank has increased the limits for investment by Foreign Portfolio Investors (FPI) for the quarter
October-December 2017 by Indian Rupee (INR) ______ in Central Government Securities and INR in State Development
Loans. - a) 76 billion; 60 billion b) 80 billion; 62 billion c) 85 billion; 65 billion d) 90 billion; 68 billion
36) In order to further harmonise norms for Masala Bonds issuance with the External Commercial Borrowings (ECBs)
guidelines, the Reserve Bank has notified that w.e.f. October 3, 2017, Masala Bonds will no longer form a part of the limit for
Foreign Portfolio Investors (FPIs) investments in corporate bonds. They will form a part of the _____ and will be monitored
accordingly.
a) FII b) ECBs c) FDI d) FCCB
37) As regards to recent guidelines on the limit for FPI Investments in Corporate Bonds, an amount of ____in each quarter will
be available only for investment in infrastructure sector by long term FPIs (i.e., Sovereign Wealth Funds, Multilateral Agencies,
Endowment Funds, Insurance Funds, Pension Funds and Foreign Central Banks).
a) Rs.9,000 cr b) Rs.9,500 cr c) Rs.10,000 cr d) Rs.10,500 cr
38) The Reserve Bank in consultation with the Government of India, excluded issuances of _______from the limit for
investments by Foreign Portfolio Investors (FPI) in corporate bonds with effect from October 3, 2017.
a) Rupee Denominated Bonds (RDBs), b) Rupee Denominated ECB’s c) Rupee Denominated Foreign Debt d) All of these.
39) The Reserve Bank has directed Authorised Dealer (AD) Category-I banks to update the Export Data Processing and
Monitoring System (EDPMS) with data of export proceeds on “ basis and, with effect from October 16, 2017 generate
Electronic Bank Realisation Certificate (eBRC) only from the data available in EDPMS, to ensure consistency of data in EDPMS
and consolidated eBRC. - a) As and when needed b) As and when realized c) As and when required d) As and when
received
40) The Reserve Bank has communicated that the applicable average base rate to be charged by Non- Banking Financial
Company – Micro Finance Institutions (NBFC-MFIs) to their borrowers for the quarter beginning October 01, 2017 will be
______. a) 10% b) 9.51%c) 9.06 % d) 8.75%
41) Which of the following statements are true with respect to Merchant Discount Rate Charges?
a) The Reserve Bank has clarified that the full amount paid to the Government by the customers / through debit/credit cards
should be remitted to the concerned Government Ministry/Department.
b) The reimbursement of Merchant Discount Rate (MDR) charges on debit card use up to Rs.1 lakh) can be claimed
separately from the Reserve Bank.
c) Deduction of MDR charges from the receipts of the Government is not permissible at all.
d) MDR charges on debit card transactions above Rs.1 lakh and on any credit card transaction are not being absorbed by
the Government of India and hence would not be reimbursed by the Reserve Bank. Accordingly, agency banks should not
deduct MDR charges from the receipts of the Government in these c) cases as well. e) All of the above.
42) With regards to Financial Inclusion and Development Lending to Non Corporate Farmers, the Reserve Bank has notified
that the applicable system wide average number for computing achievement under priority sector lending for the financial
year 2017-18 is _____. a) 10.46%b) 11.25% c) 11.78 % d) 12.25%
43) As announced by RBI under Liquidity Management Framework, Monetary Policy rate corridor has been narrowed, making
the Reverse Repo under LAF to be ____ bps lower than the policy repo rate and the MSF rate to be ____ bps higher than the
policy rate. a) 25 bps; 25 bps b) 25 bps; 50 bps c) 50 bps; 50 bps d) 50 bps; 25 bps
44) As part of Banking Regulation and Supervision, Minimum level of Net Owned Funds (NOF) requirement for Asset
Reconstruction Companies (ARCs) to be increased from Rs.2 crores to Rs ______.
a) 20 crore b) 50 crores c) 75 crores d) 100 crores
45) The Reserve Bank has allowed banks to participate in Real Estate Investment Trusts (REITs) and Infrastructure Investment
Trusts (InvITs) subject to the condition that Banks shall not invest more than ____ of the unit capital of an REIT/ InvIT.
a) 10% b) 15% c) 20% d) 25%
46) With a view to facilitating decision making in the Joint Lenders’ Forum (JLF), consent required for approval of a proposal
has been changed to ______ by value instead of 75 per cent earlier, while keeping that by number at 50 per cent.
a) 55% b) 60% c) 70% d) 80%
ANSWER
1 B 2 C 3 D 4 A 5 D 6 D 7 C 8 B 9 D 10 A
11 D 12 A 13 C 14 A 15 B 16 D 17 C 18 C 19 A 20 D
21 C 22 D 23 E 24 D 25 C 26 B 27 B 28 E 29 B 30 B
31 D 32 B 33 C 34 A 35 B 36 B 37 B 38 A 39 D 40 C
41 E 42 C 43 A 44 D 45 A 46 B
LATEST BANKING & FINANCE : PART -4
1) The Reserve Bank has advised banks to ensure that the life certificate, submitted in any branch, including a non-home branch, of
the pension paying bank, is updated / uploaded promptly in Core Banking Solution (CBS) by the _____ itself, to avoid any delay in
credit of pension. a) Receiving Branch b) Home Branch c) Regional Office d) Zonal Office
2) The Reserve Bank has advised banks to provide minimum ___ cheque leaves every year, if requested, in savings bank
account, free of charge. a) 15 b) 20 c) 25 d) 30
3) Which of the following points are correct with respect to extant guidelines issued by RBI regarding Cheque Book Facility?
a) Issue cheque books to customers, whenever a request is received, through a requisition slip, which is part of the cheque book
issued earlier.
b) Not to insist upon physical presence of any customer including senior citizens and differently abled persons for getting cheque
books.
c) Issue cheque books, on requisition, by any other mode as per bank’s laid down policy. Providing such facility in Basic Savings Bank
Deposit Account (BSBDA) will not render the account to be classified as non- BSBDA.e) All of these.
4) The RBI has advised banks to automatically convert a fully KYC compliant account into a based on the date of birth
available in bank’s records. a) ‘Senior Citizen Account’ b) ‘Smart Citizen’ c) ‘Regular Account’ d) ‘Student Savings Account’
5) The RBI has advised banks that the facilities provided to sick/old/incapacitated persons regarding operations of accounts through
identification of thumb / toe impression/mark by two independent witnesses and authorising a person who would withdraw the
amount on behalf of such customers shall also be extended to the:
a) Minors b) Visually impaired customers c) Non Resident Indians d) Senior Citizens
6) Banks are advised to provide senior citizens and differently abled persons _____ once in a year (preferably in April) to enable
them to submit the same, where applicable, within the stipulated time.
a) Form 15A/B b) Form 15C/D c) Form 15E/F d) Form 15G/H
7) The Reserve Bank has advised banks to make concerted effort to provide certain basic banking facilities at the premises /
residence of customers who are senior citizens of more than _____ of age and differently abled or infirm persons (having medically
certified chronic illness or disability) including those who are visually impaired.
a) 60 years b) 65 years c) 70 years d) 75 years
8) The RBI has decided that the banks should make it mandatory for existing large corporate borrowers having total exposures of
_____ and above to obtain Legal Entity Identifier (LEI) for further granting renewal / enhancement of credit facilities.
a) Rs.25 crore b) Rs.50 crore c) Rs.75 crore d) Rs.100 crore
9) In India, LEI code may be obtained from ________________ , a
subsidiary of the Clearing Corporation of India Limited (CCIL), which has been recognised by the RBI as issuer of LEI and is accredited
by the GLEIF as the Local Operating Unit (LOU) in India for issuance and management of LEI.
a) Legal Entity Identifier India Ltd (LEIIL) , b) Ministry of Finance c) Securities and Exchange Board of India (SEBI) d) SIDBI
10) Legal Entity Identifier (LEI) is a ______ unique code to identify parties to financial transactions worldwide.
a) 10 digit b) 12 digit c) 16 digit d) 20 digit
11) The RBI has put in place necessary safeguards in its directions on ‘Managing Risks and Code of Conduct in Outsourcing of
Financial Services by NBFCs (Non-Banking Financial Companies)’ in public interest. Which of the following points correctly define
the directions in this regard:
a) The NBFC outsourcing its activities, need to ensure sound and responsive risk management practices for effective oversight,
due diligence and management of risks arising from outsourced activities.
b) NBFCs shall not engage in outsourcing that would result in their internal control, business conduct or reputation being
compromised or weakened.
c) NBFCs which desire to outsource financial services would not require prior approval from the RBI. However, such
arrangements would be subject to on-site/off-site monitoring and inspection / scrutiny by the RBI.
d) It is imperative for the NBFC, when performing its due diligence in relation to outsourcing, to consider all relevant laws,
regulations, guidelines and conditions of approval, licensing or registration.
e) Outsourcing arrangements shall not affect the rights of a customer against the NBFC, including the ability of the customer to
obtain redress as applicable under relevant laws. F)All of the above.
12) The Reserve Bank has put in place necessary safeguards in its directions on ‘Managing Risks and Code of Conduct in
Outsourcing of Financial Services by NBFCs (Non-Banking Financial Companies)’ in public interest. NBFCs which choose to
outsource financial services shall, however, not outsource core management functions including: a) Internal audit
a) Strategic & compliance functions c) Decision-making functions d) Management of investment portfolio e) All of the above.
13) The Reserve Bank on November 16, 2017 decided that market participants undertaking ‘notional’ short sale need not
compulsorily borrow securities in the repo market and may ordinarily borrow securities from the repo market, in exceptional
situations of market stress (such as, short squeeze), it may deliver securities from which of the following own portfolios?
a) Held to maturity (HTM) b) Available for sale (AFS) c) Held for Trading (HFT) d) All of these.
14) The Reserve Bank has permitted Foreign Portfolio Investors (FPIs) to settle Over-the-Counter (OTC) secondary market
transactions in Government Securities either on basis. It may be ensured that all trades are reported on the trade date itself.
a) T+1 or on T+2 b) T+0 or on T+1 c) T+1 or on T+3 d) T+0 or on T+2
15) If hedging requirement of the user exceeds the limit in course of time, the designated bank will re-assess and, at its discretion,
extend the limit up to _____ of stipulated cap. a) 50 per cent b) 100 per cent c) 120 per cent d) 150 per cent
16) The RBI has introduced Simplified Hedging Facility for Risk Management and inter-bank dealings effective from January 1, 2018.
The products covered will be any Over the Counter (OTC) derivative or Exchange Traded Currency Derivative (ETCD), and the cap on
outstanding contracts is , or its equivalent, on a gross basis.
a) USD 20 Million b) USD 30 Million c) USD 40 Million d) USD 50 Million
17) The Reserve Bank has launched a public awareness campaign through SMSes cautioning the people against falling prey to
unsolicited and fictitious offers received through emails/SMSes/phone calls and the recourse available with them on receiving a
fake offer via sms/phone call / email. The caution messages were sent from _______sender id.
a) ‘RBIAWARES’ b) ‘RBICAUTIONS’ c) ‘RBISAY’ d) ‘RBISPEAK’
18) The Reserve Bank has started its awareness campaign against fictitious offers and incidents of people losing money due to
sharing of bank details/OTP/CVV, etc. Members of public can give a missed call to _______ to get more information through
Interactive Voice Response System (IVRS) on fake calls/emails as well as investing wisely and cautiously in chit funds.
a) 8691960000 b) 8619960000 c) 8691160000 d) 8961160000
19) To understand the impact of demonetisation on payment systems, the payment systems data have been grouped into three
time buckets. Which of the following does not represent one of those three Time Buckets?
a) Pre-demonetisation period from April 2016 to October 2016;
b) Demonetisation period from November 2016 to March 2017;
c) Post-demonetisation period from April 2017 to Sept. 2017 d) Post-demonetisation period from April 2017 to August 2017
20) The Reserve Bank has modified the Agency Commission for GST Receipt Transactions and advised all agency banks, authorised
to collect GST, to submit their agency commission claims pertaining to GST receipt transactions at _____ regional office only. a)
Mumbai b) Nagpur c) New Delhi d) Kolkata
21) Agency banks are required to submit their claims for agency commission in the prescribed format to Central Accounts Section
(CAS) ______ in respect of central government transactions and the respective regional office of the Reserve Bank for state
government transactions. a) Mumbai b) Nagpur c) New Delhi d) Kolkata
22) As per RBI’s circular with respect to examination of the bank notes before issuing over the counters, feeding ATM’s and
remitting to issue offices of the RBI, the banks should realign their cash management in such a manner so as to ensure that cash
receipts in the denominations of ____ and above are not put into re-circulation without the notes being machine processed for
authenticity. a) Rs. 50 b) Rs. 100 c) Rs. 200 d) Rs. 500
23) When counterfeit notes are detected in the soiled note remittance and currency chest balance of a bank during Inspection /
Audit by RBI, Penalty at ______ of the notional value of counterfeit notes, in addition to the recovery of loss to the extent of the
notional value of such notes, will be imposed. a) 40% b) 80% c) 100% d) 120%
24) As per RBI’s guidelines on examination of bank notes before feeding into ATM’s, the responsibility of ensuring the quality and
genuineness of cash loaded at White Label ATMs would be that of the _____.
a) Sponsor Bank b) Payment Bank c) Network Provider d) None of these.
25) As per RBI instructions, data on counterfeit notes detected by all the branches of the bank shall be reported in the prescribed
format, on a _____ basis. a) Weekly b) Fortnightly c) Monthly d) Bi-Monthly
26) As per RBI instructions on reporting of data to RBI with regards to detection and impounding of counterfeit notes, a statement
showing the details of counterfeit notes detected in the bank branches during the month shall be compiled and forwarded to the
Issue Office of RBI concerned so as to reach them by ___ of the next month.
th
a) 5th b) 7th c) 10 d) 15th
27) Under Rule 3 of Prevention of Money Laundering Rules, 2005, Principal Officers of banks are also required to report information
on cash transactions where forged notes have been used as genuine note to The Director, FIU-IND, Financial Intelligence Unit- India
within ____ working days, by uploading the information on the FINnet Portal.
a) 3 b) 5 c) 7 d) 10
28) With regard to RBI’s guidelines, reporting of Soiled note remittances to RBI / diversion to other chests / other currency chests
should not be shown as withdrawal by chest / link offices. In case such remittances are wrongly reported as 'withdrawals', a
penalty of ______ will be levied irrespective of the value of remittance and period of such wrong reporting.
a) Rs.25,000 b) Rs.50,000 c) Rs.75,000 d) Rs.1,00,000
29) Which of the following constitute non-compliances with operational guidelines by currency chests under the ‘Scheme of
Penalties for Bank Branches including Currency Chests’ of RBI?
a) Non-functioning of CCTV. b) Branch cash/documents kept in strong room.
C)Non-utilization of Notes Sorting Machines for sorting of notes (NSMs not used for sorting of high denomination notes received
over the counter or not used for sorting notes remitted to chest / RBI). d) All of the above.
30) What is the quantum of penalty for irregularities detected by RBI officials with regards to non compliance with operational
guidelines by currency chests under the ‘Scheme of Penalties for Bank Branches including Currency Chests’ of RBI?- a)Rs. 5,000 for
each irregularity b) Rs. 10,000 for each irregularity c) Rs. 15,000 for each irregularity d)Rs. 20,000 for each irregularity
31) The penalty shall be enhanced to _____in case of repetition for above mentioned irregularities detected by RBI officials with
regards to non compliance with operational guidelines by currency chests under the ‘Scheme of Penalties for Bank Branches
including Currency Chests’ of RBI ? -a) Rs.10,000 b) Rs.15,000 c) Rs.20,000 d) Rs.25,000
32) Taking into account the twin objectives of promoting debit card acceptance by a wider set of merchants, especially small
merchants, and ensuring sustainability of the business for the entities involved, it has been decided by RBI to rationalise the MDR
for debit cards based on which of the following criteria?
a) Categorisation of merchants on the basis of turnover. b)Adoption of a differentiated MDR for QR-code based transactions.
d)All of the above.
33) As per the revised instructions for Small Merchants with turnover upto Rs. 20 lakh during the previous financial year with
Physical POS infrastructure including online card transactions, the Merchant Discount Rate (MDR) for debit card transactions (as a %
of transaction value) cannot exceed ____. a) 0.40% b) 0.50%c) 0.75% d) 0.90%
34) As per the revised instructions for Other Merchants with turnover above Rs. 20 lakh during the previous financial year with
Physical POS infrastructure including online card transactions, the Merchant Discount Rate (MDR) for debit card transactions (as a %
of transaction value) cannot exceed . a) 0.40% b) 0.50%c) 0.75% d) 0.90%
35) As per the revised instructions for Small Merchants with turnover upto Rs.20 lakh during the previous financial year with QR
(Quick Response) code-based card acceptance infrastructure, the Merchant Discount Rate (MDR) for debit card transactions (as a %
of transaction value) cannot exceed ____ with MDR cap of Rs.200 per transaction.
a) 0.30% b) 0.50% c) 0.80% d) 0.90%
36) As per the revised instructions for Other Merchants with turnover above Rs.20 lakh during the previous financial year with
transaction value) cannot exceed ____ with MDR cap of Rs. 1,000 per transaction.
a) 0.30% b) 0.50% c) 0.80% d) 0.90%
Basic Saving Bank Deposits (BSBD) accounts is Rs. ______. a) Rs.5,000 b) Rs.7,000 c) Rs.10,000 d) Rs.12,000
all other SB accounts, Pre-paid Payment Instruments and Gift Cards, Current / Cash Credit / Overdraft Accounts of MSMEs, Current
Accounts / Cash Credit / Overdraft Accounts of Individuals with annual average balance (during 365 days preceding the incidence of
fraud) / limit up to Rs.25 lakh, Credit cards with limit up to Rs. 5 lakh is Rs. _______.
a) Rs.5,000 b) Rs.10,000 c) Rs.15,000 d) Rs.20,000
39) The maximum liability of the customer relating to unauthorised transactions resulting in debits to their accounts /
cards in all other Current / Cash Credit / Overdraft Accounts, Credit cards with limit above Rs.5 lakh is_____.
a) Rs.10,000 b) Rs.15,000 c) Rs.20,000 d) Rs.25,000
40) If the delay in reporting is beyond ____working days, the customer liability should be determined as per the bank’s Board
approved policy. Banks should provide the details of their policy in regard to customers’ liability formulated in pursuance of these
directions at the time of opening the accounts. a) 3 b) 5 c) 7 d) 10
41) On being notified by the customer, the bank should credit (shadow reversal) the amount involved in the unauthorised
electronic transaction to the customer’s account within _______ working days from the date of such notification by the customer
(without waiting for settlement of insurance claim, if any). a) 5 b) 7 c) 10 d) 12
42) Banks should ensure that a complaint is resolved and liability of the customer, if any, established within such time, as
may be specified in the bank’s Board approved policy, but not exceeding _____ from the date of receipt of the complaint, and
the customer is compensated as prescribed. a) 90 days b) 60 days c) 45 days d) 30 days
43) Disha Microfin, Ahmedabad an NBFC MFI registered with the RBI and aimed to provide high-quality financial services
has commenced operations as ____ with effect from July 21, 2017.
a) AU Small Finance Bank b) Capital Small Finance Bank c) Equitas Bank d) Fincare Small Finance Bank
44) The Reserve Bank has advised the Chief Executive Officers of Payment Banks to follow certain instructions which state
that Payments Banks are permitted to act as Business Correspondents (BCs) of other banks. Under the BC arrangement and with
prior specific or general consent of the customer, Payment Banks may effect the transfer of funds deposited by a customer into
own account with another eligible bank, so that the balance in the customer’s
account with the PB does not exceed or any such lower amount as specified by the customer.
a) Rs. 50,000 b) Rs. 75,000 c) Rs. 1,00,000 d) Rs. 1,20,000
45) The Reserve Bank has advised the Chief Executive Officers of Payment Banks to follow certain instructions which
state that Payments Banks are permitted to act as Business Correspondents (BCs) of other banks. Which of the following points
are correct with respect to these guidelines?
a) At any time, Payment Banks shall not have rights to operate or have real-time access to the funds available in the account of the
customer at any other bank, including the transferee bank. However, as a BC of a bank, PBs may facilitate withdrawals and
transfers by the customer from her account with the bank of which it is the BC.
b) A Payment Bank shall neither arrange nor avail of intraday funding facilities for its customers, based on the balances available in
the customer’s a/c with any other bank, or otherwise.
c) Payment Banks are required to closely monitor the accounts of their customers, to identify and report suspicious transactions,
when the deposit / transaction volumes are not commensurate with the customer’s profile.
d) All of these.
ANSWER
1 A 2 C 3 E 4 A 5 B 6 D 7 C 8 B 9 A 10 D
11 F 12 E 13 D 14 A 15 D 16 B 17 C 18 A 19 C 20 A
21 B 22 B 23 C 24 A 25 C 26 B 27 C 28 B 29 D 30 A
31 A 32 D 33 A 34 D 35 A 36 A 37 A 38 B 39 D 40 C
41 C 42 A 43 D 44 C 45 D
Latest RBI POLICY BASED Questions ( 01.01.2016 to 31.03.2017)

01 What is RTGS monthly membership fee payable by scheduled commercial banks wef 1.4.16?
(a) Rs.10000 ( b ) R s . 5 0 0 0 (c) Rs.2500 ( d ) R s . 2 0 0 0
02 What are RTGS charges recoverable from customers including the time varying charges for amount up to Rs.5 lac?
( a ) R s . 1 0 ( b ) R s . 2 0 ( c ) R s . 3 0 ( d ) R s . 5 5
03 What are RTGS charges recoverable from customers including the time varying charges for amount above Rs.5 lac?
( a ) R s . 1 0 ( b ) R s . 2 0 ( c ) R s . 3 0 ( d ) R s . 5 5
04 Indian Accounting Standards (Ind AS) shall be implemented by banks from the accounting period :
(a) beginning 1.4.17 (b) beginning 1.4.18 (c) ending 31.3. 18 (d) ending 31.3.19
05 For implementation of new Indian Accounting Standards (Ind A) banks are to set up Steering Committee which is to be headed by:
(a) GM incharge of Accounts (b) Executive Director of the bank (c) Managing Director of the bank (d) Chairman of the Bank
06 Wef 1.2.2016, CERSAI has revised the registration charges payable by banks. For a loan up to Rs.5 lac, the charges are ____ when
it is registered within a period of 30 days: ( a ) R s . 5 0 ( b ) R s . 1 0 0 ( c ) R s . 5 0 0 ( d ) R s . 1 0 0 0
07 Wef 1.2.2016, CERSAI has revised the registration charges payable by banks. For a loan above Rs.5 lac, the charges are ____ when
it is registered within a period of 30 days: ( a ) R s . 5 0 ( b ) R s . 1 0 0 ( c ) R s . 5 0 0 ( d ) R s . 1 0 0 0
08 Wef 1.2.2016, CERSAI has revised the registration charges payable by banks. For a loan the maximum charges are ____ when it is
registered after a period of 30 days with permission of Central Registrar:
(a) Rs.50 (b) Rs.1000(c) Rs.500 (d)Rs.100
09 Wef 1.2.2016, CERSAI has revised the registration charges payable by banks. On adjustment of loan, the charges for satisfaction of
existing security interest are:- ( a ) R s . 5 0 ( b ) R s . 1 0 0 (c) same as in case of registration (d) no charges
10 For a loan facility to be eligible for CGTMSE guarantee cover, the maximum rate of interest charged by the bank concerned, in
the loan account can be: (a) base rate of the bank (b) bank rate + 4% (c) base rate + 4% (d) bank rate + 3%
11 As per RBI directions, the foreign currency comprises which of the following?- (a) currency notes and coins (b) debit
card (c) ATM card or any other instrument used to create financial transaction (d) all the above
12 Post offices in India can sell foreign exchange in the form of: (a) currency notes and postal order (b) coins and
money order, (c) money order and postal order (d) currency notes, coins, money order and postal order
13 As per Govt. notification relating to small savings, the interest rate for the quarter ending March 2018, on public provident
fund (PPF) has been fixed at:- ( a ) 7 . 8 % ( b ) 8 . 0 % ( c ) 7 . 6 % ( d ) 8 . 3 %
14 As per Govt. notification relating to small savings, the interest rate for the quarter ending March 2018 on Sukanya Samridhi
Scheme has been fixed at:- ( a ) 7 . 8 % (b) 8.1% (c) 8.5% (d) 8.3%
15 As per Govt. notification relating to small savings, the interest rate for the quarter ending March 2018 on Senior Citizens’
Saving Scheme has been fixed at:- ( a ) 7 . 8 % (b) 8.1% (c) 8.5% (d) 8.3%
16 As per Govt. notification relating to small savings, the interest rate for the quarter ending March 2018 on 5 year National
Saving Certificate has been fixed at:- ( a ) 7 . 7 % (b) 8.1% (c) 7.6% (d) 8.3%
17 For the purpose of calculation of capital adequacy ratio, which of the following is not be taken as part of CET -1 capital fund:
(a) paid up capital (b) statutory reserves (c) revaluation reserve @ 55% discount (d) none of the above
18 Foreign Currency Translation Reserves (FCTR) created by a bank can be taken as part of CET-1 capital fund by the bank at a discount
of , for the purpose of calculation of capital adequacy ratio: ( a ) 1 0 % ( b ) 2 5 % ( c ) 5 5 % (d) 67%
19 Subject to compliance of certain conditions, the Deferred Tax Assets can be included in ____ capital fund by banks for the purpose
of calculation of capital adequacy ratio:
(a) CET-1 capital funds (b) Additional Tier-1 capital funds (c) Tier-2 capital funds (d) Capital conservation buffer
20 The Present Bank Rate -. ( a ) 7 . 7 5 % (b ) 7.5 0 % ( c ) 7 . 0 0 % ( d ) 6 . 2 5 %
21 The Repo rate under the Liquidity Adjustment Facility (LAF) as per RBI Monetary Policy for 2016 -17 w.e.f. 8.2.2017:
(a) 6.75% (b) 6.25% ( c ) 6 . 5 0 % ( d ) 6 . 0 0 %
22 The Reverse Repo rate under the Liquidity Adjustment Facility (LAF) as per RBI Monetary Policy for 2016 -17 w.e.f. 8.2.2017 ( a )
6.00% (b) 6.50% (c) 6.25% (d) 5.75%
23 The marginal standing facility Rate as per RBI Monetary Policy for 2016 -17 w.e.f. 8.2.2017
a ) 7 . 0 0 % (b ) 7.5 0 % ( c ) 7 . 2 5 % ( d ) 6 . 7 5 %
24 A citizen of foreign state, not being a Person of Indian origin (PIO) or a citizen of Nepal or Bhutan, who (i) has retired from an
employment in India, or (ii) has inherited the assets in India or (iii) is a widow/ widower resident outside India and has inherited assets of the
deceased spouse who was an Indian citizen resident in India, may remit through an authorised dealer an amount, not exceeding ____ per
financial year on production of documentary evidence in support of acquisition, inheritance or legacy of assets by the remitter
(a) USD 10 million (b) USD 5 million (c) USD 1 million (d) USD 500000
25 A Non-Resident Indian (NRI) or a Person of Indian Origin (PIO) may remit through an authorised dealer an amount, not
exceeding ____ per financial year, (a) USD 10 million (b) USD 5 million (c) USD 1 million (d) USD 500000
26 Allotment of shares to the investors requires prior approval of RBI for acquisition of shares or voting rights in private sector banks if
the proposed acquisition results in aggregate holding of ____ or more of the paid-up capital of the bank.
(a) 10% or more (b) 5% or more (c) 2% or more (d) 1% or more
27 RBI has discretionary powers to approve the voluntary amalgamation of two banking companies under the provisions of :
(a) Section 44A of the Companies Act, 2013 (b) Section 46 of the Banking Regulation Act, 1949
(c) Section 44A of the RBI Act, 1949 (d) Section 44A of the Banking Regulation Act, 1949
28 As per provisions of Banking Regulation Act, a dissenting shareholder is entitled, in the event of the voluntary amalgamation scheme of
two banking companies being sanctioned by RBI, to claim within ____ from the date of sanction, from the banking company concerned, in
respect of the shares held by him in that company, their value as determined by RBI:
(a) one month (b) two months (c) three months (d) six months
29 Investment Advisory Services (IAS) offered by banks can be (1) undertaken departmentally (2) through a separate subsidiary set
up for the purpose (3) through one of the existing subsidiaries after ensuring that there is an arm’s length relationship between the
bank and the subsidiary.- (a) 1 to 3 all (b) 1 and 2 only (c) 1 and 3 only (d) 2 and 3 only
30 Investment Advisory Services (IAS) offered by banks are regulated by: ( a ) R B I ( b ) S E B I ( c ) D I P P (d) DIPP and RBI
31 What is the current limit for foreign investment in corporate debt in India, which is otherwise expressed in Indian currency?
(a) USD 109 billion (b) USD 63 billion (c) USD 51 billion (d) USD 34 billion
32 What is the maximum amount which can be borrowed by an entity in a financial year under automatic route by issuance of
corporate bonds ?- (a) Rs.50 billion (b) Rs.40 billion (c) Rs.30 billion d Rs.22 billion
33 RBI decided to reduce the minimum maturity period for Rupee denominated bonds issued overseas to ______ in order to align
with the maturity prescription regarding foreign investment in corporate bonds through the Foreign Portfolio Investment (FPI)
route. - (a) on e y ear (b) two years (c) three years (d) four years
34 RBI decided during April 2016 that all the banks having currency chests should ensure conducting of fire audits ____ by the
officials from the District Fire Department.
(a) once in two years (b) once in one year (c) once in six months (d) once in three months
35 RBI reduced the minimum daily maintenance of the Cash Reserve Ratio from ___ effective from the fortnight beginning April
16, 2016 to 05.04.2017 : (a) 95% to 90% (b) 95% to 85% (c) 90% to 85% (d) 90% to 80%
36 Equity investment by a bank in a subsidiary company, or a financial services company, not being a subsidiary, individually, can
not exceed ___ per cent of the bank’s paid-up share capital and reserves as per the last audited balance sheet or a subsequent
balance sheet, whichever is lower, as per RBI guidelines.: (a) 5% (b) 10% (c) 15% (d) 20%
37 The aggregate of equity investment in factoring subsidiaries and factoring companies can not exceed ___ % of the bank’s paid
up capital and reserves, as per RBI guidelines.: (a) 5%(b) 10% (c) 15% (d) 20%
38 No bank can contribute more than ___ per cent of the equity of Infrastructure Debt Fund set up as a Non-banking Finance
Company (IDF-NBFC), as per RBI guidelines.: (a) 24% (b) 26% (c) 49% (d) 51%
39 No bank can hold more than ___ per cent in the equity of a deposit taking NBFC, as per RBI guidelines.
(a) 5% (b) 10% (c) 15% (d) 20%
40 No bank can hold more than __ per cent of the paid up capital/ unit capital of a venture capital fund (VCF)/Category I Alternate
Investment Fund (AIF-I), as per RBI guidelines.: (a) 5% (b) 10% (c) 15% (d) 20%
41 No bank can hold more than ____ per cent of the paid up capital of a company, not being its subsidiary engaged in non-
financial services or 10 per cent of the bank’s paid up capital and reserve, whichever is lower, as per RBI guidelines.
(a) 5% (b) 10% (c) 15% (d) 20%
42 The aggregate equity investments made in all subsidiaries and other entities engaged in financial services and non-financial services,
including overseas investments shall not exceed ___ per cent of the bank’s paid-up share capital and reserves, as per RBI guidelines. -
(a) 5% (b) 10% (c) 15% (d) 20%
43 For insurance underwriting business, a bank’s networth must be of ___ crore and its minimum net worth shall not be
less than Rs.500 crore after investing in the equity of such company, as per RBI guidelines
(a) Rs.300 cr (b) Rs.500 cr (c ) Rs.1000 cr (d) Rs.2000 cr
44 For insurance underwriting business, a bank’s capital to risk assets ratio (CRAR) should not be less than ___ per cent after
investment, as per RBI guidelines.:(a) 8% (b) 9% (c) 10% (d) 11%
45 For insurance underwriting business, a bank’s level of net non-performing assets should not be more than ___ per cent, as per
RBI guidelines.: (a) 1% (b) 2% (c) 3% (d) 5%
46 For Pension Fund Management business, a bank’s net worth shall not be less than ___ crore after investing in the equity of such
company, as per RBI guidelines. (a) Rs.300 cr (b) Rs.500 cr (c) Rs.1000 cr (d) Rs.2000 cr
47 Banks can offer referral services for financial products other than ____, on a non-risk participation basis, as per RBI guidelines.
(a) portfolio management (b) payments (c) insurance (d) all the above
48 AD Category I scheduled commercial bank can become a trading/clearing member of the currency derivatives segment of the
SEBI recognised stock exchanges if it has a minimum net worth of __ crore, as per RBI guidelines
(a) Rs.300 cr (b) Rs.500 cr (c ) Rs.1000 cr (d) Rs.2000 cr
49 Banks are required to submit certain returns / information to RBI under XBRL. XBRL stands for:
(a) eXtensible Business Reporting Language (b) Xtensible Binary Reporting Language
(c) eXtensible Binary Reproducing Language (d) Xtensible Business Reporting Language
50 Banks are required to submit Proforma Ind AS Financial Statements to the Reserve Bank from the half-year ended ______
onwards. (a) June 30, 2016 (b) Sep 30, 2016 (c) Dec 31, 2016 (d) Mar 31, 2016
51 Banks are required to submit Proforma Ind AS Financial Statements to the Reserve Bank from the date fixed by RBI. These
financial statements do not include, which of the following:
(a) balance sheet including changes in equity (b) profit and loss account ( c ) n o t e s (d) none of the above
52 Indian startup, having an overseas subsidiary, cannot open which of the following type of account:
(a) foreign currency account with a bank outside India (b) exchange earners foreign currency account
(c) resident foreign currency account (d) any of the above
53 Banks in India and the White Label ATM operators have been mandated by RBI to ensure that all the existing ATMs installed/
operated by them are enabled for processing of EMV Chip and PIN cards by ___ :
(a) Sep 30, 2016 (b) Dec 31, 2016 (c) Mar 31, 2017 (d) Sep 30, 2017
54 Banks in India and the White Label ATM operators have been mandated by RBI to ensure that all the existing ATMs installed/
operated by them are enabled for processing of EMV Chip and PIN cards. In this context EMV chip stands for:
(a) Euro, Master, Visa which is a global standard for chip based debit and credit transactions
(b) Europay, Master, Visa which is a global standard for chip based debit and credit transactions
(c) Euro, Money, Visa which is a global standard for chip based debit and credit transactions
(d) Europay, Moneypay, Valuepay which is a global standard for chip based debit and credit transactions
55 Factoring transactions on basis are eligible for priority sector classification by banks, which are carrying out the business of
factoring departmentally, provided the assignor is an MSME.
(a) with recourse,(b) without recourse ,(c) with recourse and without recourse, (d) none of these
56 The banks are required to make acquiring of a certificate course mandatory for the banking personnel who are working in the
following areas: (a) Treasury operations (b) Risk management (c) Credit Management (d) all the above
57 As per RBI guidelines, a borrower can obtain credit report from a Credit Information Company, by paying, how much charges:
(a) Rs.100 per report (b) Rs.50 per report (c) Rs.25 per report (d) nil
58 As per RBI guidelines, a borrower can obtain his credit report from a Credit Information Company:
(a) once in a period of two year (b) once in a period of one year (April to March)
(c) once in a period of one year (January to December) (d) twice in a period of one year (April to March)
59 The system-wide average of the last three years achievement with regard to overall direct lending to non-corporate farmers
notified by RBI for computing achievement under priority sector lending for the FY 2016-17 is ____ percent.
(a) 9.80% (b) 10.20% (c) 11.70% (d) 12.30%
60 For the purpose of Branch Authorisation the Tier-wise population groups, List of Underbanked Districts and List of
Underbanked Districts in Underbanked States are furnished based on which Census ?
(a) Census 1991 (b) Census 2001 (c) Census 2011 (d) Census 2015
61 Each bank can engage the services of their retired personnel for a maximum tenure of ___ in the areas where it does not have
enough expertise.- (a) five years (b) three years (c) two years (d) one year
62 As per RBI’s Sept 2016 guidelines the aggregate exposure limit of all banks towards the Partial Credit Enhancement (PCE) for a
given bond issue is ____ of the bond issue size.- (a) 100% (b) 50% (c) 25% (d) 20%
63 Banks are required to identify and list internally, the specific financial assets identified for sale at least;
(a) once in a year (b) once in two years (c) once in three years (d) at their discretion
64 To sell a non-performing assets, the banks are required to provide at least ____ period for due diligence by the prospective
buyer.- (a) one month (b) three weeks (c) two weeks (d) one week
65 The investment in security receipts (SRs) backed by stressed assets sold by a bank, under an asset securitisation, can be
maximum _____ from 01.04.18: (a) 10% (b) 15% (c) 20% (d) 50%
66 Repo transactions can be undertaken by eligible entities in (1) dated securities of Central govt. (2) treasury bills of Central
Govt. (3) dated securities of State govt. (4) securities issued by banks:
(a) 1 to 4 all (b) 1 to 3 only (c) 1, 2 and 4 only (d) 3 and 4 only
67 Repo transactions in OTC market are required to be reported on the prescribed reporting platform within :
(a) one day (b) 3 hours (c) 1 hour (d) 15 minutes
68 All repo transactions are required to be settled in SGL accounts or CSGL account maintained with RBI, through:
(a) FIMMDA (b) Clearing Corporation of India (c) National Security Depository Limited (d) NPCI
69 Listed companies can lend and borrow funds under repo for a period less than ____
(a) one day (b) 3 days (c) 7 days (d) 10 days
70 Banks can undertake repo transactions only : (a) in securities purchased for meeting SLR requirements (b) in all types of
securities (c) in securities in excess of SLR requirement (d) in non-SLR securities
71 Under provisions of GST Constitutional (Amendment) Act 2016, the Central Govt. will make mandatory compensation to States
for loss due to implementation of Goods and Services Tax, for a period up to: (a) 7 years (b) 5 years (c) 3 years (d) 1 year
72 Under provisions of GST Constitutional (Amendment) Act 2016, the State governments have been allowed to enact the State
Goods and Services Tax within a period up to: (a) 6 months (b) one year (c) two years (d) three years
73 As per extant RBI directives, the amount of permitted trade transaction, under the Rupee Drawing Arrangements (RDAs) shall
not exceed Rs.___ per transaction. (a) Rs.10 lac (b) Rs.15 lac(c) Rs.25 lac (d) Rs.100 lac
74 Which of the following govt. securities cannot the accepted as a collateral security for giving loan:
(a) Treasury bills (b) Sovereign Gold Bonds (c) Dated securities (d) none of the above
75 Under the Payment and Settlement Systems Act 2007, the amount of penalty/fine for the various payment system operators /
banks based on the nature of contravention/offences can be with a minimum penalty of ___lakh.
(a) Rs.10 lac (b) Rs.5 lac (c) Rs.2 lac (d) Rs.1 lac
76 Under the Payment and Settlement Systems Act 2007, the amount of penalty/fine for the various payment system operators /
banks where the contravention/violation is not quantifiable, can be a maximum of ___.
(a) Rs.10 lac (b) Rs.25 lac(c) Rs.50 lac (d) Rs.100 lac
77 Which of the following type of govt. security is not eligible for SLR investment by banks
(a) Dated securities of the Government of India issued from time to time under the market borrowing programme and the Market
Stabilization Scheme (b) Treasury Bills of the Government of India; (c) State Development Loans (SDLs) of the State
Governments issued from time to time under the market borrowing programme (d) none of the above
78 Oil Bonds issued by Government of India will qualify as eligible securities for :
(a) Repos (b) Reverse Repos (c) Marginal Standing Facility (d) all the above
79 What is the margin requirement for reverse repo transactions, between RBI and a bank?
(a) 5% (b) 7.5% (c) 10% (d) nil
80 In case of ECB, wherever hedging has been mandated by the RBI, the ECB borrower will be required to cover principal as well
as coupon through financial hedges. The tenor of _____ of financial hedge would be required with periodic rollover duly ensuring
that the exposure on account of ECB is not unhedged at any point during the currency of ECB.
(a) minimum one year (b) minimum 6 months (c) minimum 3 months (d) minimum 1 month
81 Banks are permitted to raise funds through issuance of rupee denominated bonds overseas for the following purposes:
(a) Perpetual Debt Instruments (PDI) qualifying for inclusion as Additional Tier 1 capital
(b) Debt capital instruments qualifying for inclusion as Tier 2 capital,
(c) Financing of infrastructure and affordable housing (d) all the above
82 The banks have been advised by RBI to increase dispensation of Rs. 100 banknotes through ATMs and for that purpose on pilot
basis ____% of the ATMs in the country are required to be calibrated to dispense Rs.100 banknotes exclusively.
(a) 15% (b) 10% (c) 5% (d) 3%
83 AD Category-I banks can allow the Startups to raise ECB with a minimum maturity of:
(a) 1 year (b) 2 years (c) 3 years (d) 5 years
84 AD Category-I banks can allow the Startups to raise ECB for a maximum amount of : (a) USD 5 million per financial year (b)
USD 3 million per financial year c USD 2 million per financial year (d) USD 1 million per financial year
85 The banks are required to ensure that cash receipts in the denominations of ___ and above are not put into re-circulation
without the notes being machine processed for authenticity. (a) Rs.100 (b) Rs.500 (c) Rs.1000 (d) Rs.2000
86 Under the Large Exposure Framework (LEF), Large Exposure means the sum of all exposure values of a bank to a counterparty
or a group of connected counterparties is equal to or above ____ percent of the bank’s eligible capital base (i.e., Tier 1 capital).
(a) 5% (b) 10% (c) 15% (d) 20%
87 Under the Large Exposure Framework (LEF), the maximum of exposure values of a bank to a single counterparty can be ___
percent of the bank’s available eligible capital base at all times. (a) 50% (b) 30% (c) 25% (d) 20%
88 Under the Large Exposure Framework (LEF), the maximum of exposure values of a bank to a group of connected
counterparties can be ___ percent of the bank’s available eligible capital base at all times.
(a) 50% (b) 30% (c) 25% (d) 20%
89 Under the Large Exposure Framework (LEF),if there is any breach of the large exposure limits under exceptional conditions it
shall be rectified within a period of ____ days from the date of the breach.
(a) 7 days (b) 10 days (c) 15 days (d) 30 days
90 Under the Large Exposure Framework (LEF), the interbank exposures, except intra-day interbank exposures, will be subject to
the large exposure limit of ___ of a bank’s Tier 1 capital - (a) 50% (b) 30% (c) 25% (d) 20%
ANSWER
1 B 2 C 3 D 4 B 5 B
6 A 7 B 8 B 9 D 10 C
11 D 12 C 13 C 14 B 15 D
16 C 17 D 18 B 19 A 20 D
21 B 22 D 23 D 24 C 25 C
26 B 27 D 28 C 29 D 30 B
31 C 32 A 33 C 34 A 35 A
36 B 37 B 38 C 39 B 40 B
41 B 42 D 43 C 44 C 45 C
46 B 47 C 48 B 49 A 50 B
51 D 52 C 53 D 54 B 55 A
56 D 57 D 58 C 59 C 60 C
61 B 62 B 63 A 64 C 65 A
66 B 67 D 68 B 69 C 70 C
71 B 72 B 73 B 74 D 75 B
76 D 77 D 78 D 79 D 80 A
81 D 82 B 83 C 84 B 85 A
86 B 87 D 88 C 89 D 90 C
MCQ ON KYC & CC
1) The data on detection of counterfeit Indian notes at bank branches & treasuries should be included in the ______ Returns
forwarded to the Reserve Bank Issue Offices: a) Fortnightly b) monthly c) Bi-monthly d) Quarterly
2) The banks should re-align their cash management in such a manner so as to ensure that cash receipts in the
denominations of _____and above are not put into recirculation without the notes being machine processed for authenticity:
a) Rs. 20 b) Rs. 50 c) Rs. 100 d) Rs. 500
3) As per RBI guidelines, penalty at ____ of the notional value of counterfeit notes, in addition to the recovery of loss to the
extent of the notional value of such notes, will be imposed when counterfeit notes are detected in the soiled note remittance of
the bank and in the currency chest balance of a bank during Inspection / Audit by RBI:
a) 50% b) 60% c) 80% d) 100%
4) The responsibility of ensuring the quality and genuineness of cash loaded at _______would be that of the Sponsor Bank:
a) White Label ATM’s b) Brown Label ATM’s c) Both (a) & (b) d) None of these.
5) Data on counterfeit notes detected by all the branches of the bank shall be reported in the prescribed format, on a
monthly basis. A statement showing the details of counterfeit notes detected in the bank branches during the month shall be
compiled and forwarded to the Issue Office of Reserve Bank concerned so as to reach them by ___ of the next month:
th th th
a) 5 b) 6 c) 7 d) 8th
6) Under Rule 3 of Prevention of Money Laundering Rules, 2005, Principal Officers of banks are also required to report
information on cash transactions where forged notes have been used as genuine note to The Director, FIU-IND, Financial
Intelligence Unit- India, within _____ working days. A ‘nil’ report may be sent in case no counterfeit has been detected during the
month. a) 5 b) 7 c) 10 d) 14
07 Reporting Entities (REs) other than Scheduled Commercial Banks are to upload the KYC data pertaining to all new individual
accounts opened on or after from ___ with Central KYC Records Registry, immediately.
(a) 01.01.17 (b) 01.03.17(c) 01.04.17 (d) 01.07.17
08 Where a reporting entity provides an option for One Time Pin (OTP) based e-KYC process for on-boarding of customers, the
maximum balance in such accounts can be: (a) Rs.25000 (b) Rs.50000 (c) Rs.1 lac (d) Rs.2 lac
09 Where a reporting entity provides an option for One Time Pin (OTP) based e-KYC process for on-boarding of customers, the
aggregate credit in a financial year, in such accounts can be: (a) Rs.25000 (b) Rs.50000 (c) Rs.1 lac (d) Rs.2 lac
10 Where a reporting entity provides an option for One Time Pin (OTP) based e-KYC process for providing term loan, the amount
of sanctioned term loan can be max ____ per financial year: (a) Rs.50000 (b) Rs.60000 (c) Rs.75000 (d) Rs. 1 lac
11 Deposit and borrowal account opened using one-time-pin (OTP) based e-KYC shall not be allowed for more than ____ within
which Customer Due Diligence (CDD) procedure is to be completed.
(a) one month (b) one quarter (c) one half-year (d) one year
12 Reporting Entities (REs) are required to preserve the customer account information including preservation of records
pertaining to the identification of the customers and their addresses obtained while opening the account, for at least ____ after
the business relationship is ended. : (a) one year (b) two years (c) three years (d) five years
13 The banks are to maintain, at the Currency Chest level and at link branches level, a Daily Record of Issuances showing the serial
numbers of Mahatma Gandhi (New) Series banknotes in the denominations of Rs.500 and above received from RBI as remittance
and issuance thereof to their own branches, branches of other banks and post offices, branch wise and denomination wise on
daily basis. These records are to be preserved for a period of: (a) one year (b) two years(c) three years (d) five years
14 Government of India has authorised the______, to act as, and to perform the functions of the Central KYC Registry (CKYCR)
:.(a) Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI)
(b) Credit Information Bureau India Limited (c) Credit Rating India Limited (d) Central KYC Registry Limited
15 Scheduled Commercial Banks (SCBs) may upload the KYC data with Central KYC Registry, in respect of new individual accounts
opened on or after : (a) 30.06.16 (b) 15.07.16 (c) 31.07.18 (d) 30.09.16
16 As per extant Rules for Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), with effect from June 1, 2016 the claims for deaths
which occur during the first ___ days from the date of enrolment will not be paid:
17 All Scheduled Commercial Banks (SCBs) are required to invariably upload the KYC data pertaining to all new individual accounts
opened on or after ____ with Central KYC Records Registry, immediately:
(a) 01.01.17 (b) 01.03.17(c) 01.04.17 (d) 01.07.17
18 Know Your Customer (KYC) guidelines have been issued by RBI:
(a) u/s 35A of Banking Regulation Act 1949 (b) Rule 9 (14) of Prevention of Money Laundering Act
(c) u/s 25 of Payment and Settlement System Act 2007 (d) a an d b both
19 Under KYC, in case of a company, the beneficial owner is the natural person, who has a controlling ownership interest or who
exercise control of more than ____ per cent of the shares or capital or profits of the company.
(a) 10% (b) 15% (c) 20% (d) 25%
20 Under KYC, in case of a partnership firm, the beneficial owner is the natural person, who has a controlling ownership
interest or who exercise control of more than ____ per cent of the capital or profits:
(a) 10% (b) 15% (c) 20% (d) 25%
21 Under KYC, in case of unincorporated association or body of individuals, the beneficial owner is the natural person, who
has a controlling ownership interest or who exercise control of more than ____ per cent of the property or capital or profits :
(a) 10% (b) 15% (c) 20% (d) 25%
22 Under KYC rules, which of the following is not an officially valid document for both the purposes namely identity proof and
proof of address, as it does not contain address details (1) Passport, (2) Driving licence, (3) Permanent Account Number (PAN)
Card, (4) Voter’s Identity Card issued by the Election Commission of India, (5) job card issued by NREGA duly signed by an officer
of the State Government (6) letter issued by the Unique Identification Authority of India containing details of name, address and
Aadhaar number. (a) 3, 5 and 6 only (b) 3 and 6 only ( c ) 3 o n l y (d) none of the above
23 For KYC purpose, where ‘simplified measures’ are applied for verifying the identity of the customers, the utility bill, which
is not more than ____ months old, of any service provider (electricity, telephone, post-paid mobile phone, piped gas, water
bill) shall be deemed to be OVD: (a) 1 month (b) 2 months (c) 3 months (d) 6 months
24 For the purpose of small account under KYC, which of the following conditions is correctly stated:
(a) aggregate of all credits in a financial year does not exceed Rs.50000
(b) the aggregate of all withdrawals and transfers in a month does not exceed Rs.10000
(c) the balance at any point of time does not exceed Rs.100000 (d) none of the above
25 Common Reporting Standards means reporting standards set for implementation of multilateral agreement signed by India
to automatically exchange information based on Article 6 of the Convention on Mutual Administrative Assistance in Tax
Matters relating to bank a/cs of :
(a) European citizens only (b) US Citizens (c) Citizens of all countries (d) Citizens of countries other than USA
26 Foreign Account Tax Compliance Act (FATCA) inter alia, requires foreign financial institutions to report about financial
accounts held by ____ taxpayers or foreign entities in which ____ taxpayers hold a substantial ownership interest. -- (a)
European citizens only (b) US taxpayers (c) Citizens of all countries (d) Citizens of countries other than USA
27 A bank which is incorporated in a country where it has no physical presence and is unaffiliated to any regulated financial
group, is called: a Universal Bank b Narrow Bank c Shell Bank d Correspondent Bank
28 Which of the following is a key element of KYC policy of a bank, as per RBI directions (1) customer acceptance policy (2)
risk management (3) customer identification procedure (4) monitoring of transactions (5) reporting of
transactions (a) 1 to 5 all (b) 1 to 4 only (c) 1 to 3 only (d) 1 and 2 only
29 For risk management under KYC rules of RBI, the customers are categorized into following categories (which one is not
correct) (a) h ig h r is k (b) medium risk (c ) l o w r i s k (d) nominal risk
30 In cases where a customer categorised as ‘low risk’, expresses inability to complete the documentation requirements
on account of any reason that the bank considers to be genuine, the bank shall, at its option, complete the verification of
identity of the customer within a period of ____ months from the date of establishment of the relationship.
(a) 1 month (b) 2 months (c) 3 months (d) 6 months
31 In case an individual customer who does not possess either any of the OVDs or the documents applicable in respect of
simplified procedure and desires to open a bank account: (a) he cannot be allowed the bank account (b) he can
open a small account (c) he can open a basic saving bank deposit account (d) he can open saving bank account without
cheque book and cheque collection facility
32 A small account allowed to be opened by a customer as per KYC procedure can be allowed:
(a) up to 3 months (b) up to 6 months (c) up to one year (d) up to two years
33 Under KYC, a system of periodic review of risk categorisation of accounts, with such periodicity being at least once in ___ shall
be put in place (a) 3 months (b) 6 months (c) one year (d) two years
34 Periodic updation of proof of identity and proof of address of the customer shall be carried out by the banks under KYC at
least once in every ____ years for medium risk customers from the date of opening of account / last verification under KYC:
(a) two years (b) five years (c) eight years (d) ten years
35 Periodic updation of proof of identity and proof of address of the customer shall be carried out by the banks under KYC
at least once in every ___ years for high risk customers from the date of opening of account / last verification under KYC:
36 Periodic updation of proof of identity and proof of address of the customer shall be carried out by the banks under KYC at
least once in every ____ years for low risk customers from the date of opening of account / last verification under KYC:
37 In existing accounts, where the KYC requirement has not been fulfilled by customers, the option of ‘partial freezing (only
credit, no debit)’ shall be exercised by the bank, after giving due notice of
months followed by a reminder for further period of ____, to the customers to comply with KYC requirements.
(a) one month, one month (b) two months, three months (c) three months, three months (d) six months, three months
38 In existing accounts, where the KYC requirement has not been fulfilled by customers, all debits and credit shall be
disallowed after ____ months of use of the option of ‘partial freezing’ :
(a) 1 month (b) 2 months (c) 3 months (d) 6 months
39 Banks shall, at their option, open a ____ bank account of a foreign student on the basis of his/her passport (with visa &
immigration endorsement) bearing the proof of identity and address in the home country together with a photograph and a
letter offering admission from the educational institution in India.
(a) resident saving bank account (b) resident current account
(c) non-resident ordinary account (d) any of the above account
40 Where banks open a bank account of a foreign student, a declaration about the local address shall be obtained within a
period of ____ days of opening the account and the said local address is verified.
(a) 15 days (b) 30 days (c) 60 days (d) six months
41 Where banks open a bank account of a foreign student, pending the verification of local address, a/c shall be operated with a
condition of allowing foreign remittances not exceeding ____ or equivalent into the account and a cap of ____ on aggregate in
the same: (a) USD 500, Rs.25000 (b) USD 10000, Rs.50000 (c) USD 15000, Rs.75000 (d) USD 20000, Rs.1 lac
42 Under KYC, banks are required to maintain all necessary records of transactions between the bank and the customer, both
domestic and international, for at least ____ from the date of transaction;
(a) two years (b) three years (c) five years (d) ten years
43 Under KYC, banks are required to preserve the records pertaining to the identification of the customers and their
addresses obtained while opening the account and during the course of business relationship, for at least ____ years after
the business relationship is ended; (a) 2 years (b) 3 years (c) 5 years (d) 10 years
44 Banks shall furnish to the Director, Financial Intelligence Unit-India (FIU-IND), referred to in Rule 3 of PML (Maintenance of
Records) Rules, the cash transaction report (of large size cash transactions):
(a) on a monthly basis within 7 days (b) on a monthly basis within 10 days
(c) on a monthly basis within 15 days (d) on a monthly basis within 20 days
45 Banks shall furnish to Financial Intelligence Unit-India (FIU-IND) as per Rule 3 of PML (Maintenance of Records) Rules, the
periodic cash transaction report of large size cash transactions of :
(a) single transaction or total monthly transactions of Rs.1 lac and above
(b) single transaction or total monthly transactions of Rs.5 lac and above
(c) single transaction or total monthly transactions of Rs.10 lac and above
(d) single transaction or total monthly transactions of Rs.15 lac and above
46 Banks shall furnish to Financial Intelligence Unit-India (FIU-IND), referred to in Rule 3 of PML (Maintenance of Records) Rules,
the counterfeit currency report: (a) on a monthly basis within 7 days (b) on a monthly basis within 10 days
(c) on a monthly basis within 15 days (d) on a monthly basis within 20 days
47 Banks shall furnish to Financial Intelligence Unit-India (FIU-IND), referred to in Rule 3 of PML (Maintenance of Records) Rules,
the suspicious transaction report: (a) within 7 days (b) within 10 days (c) within 15 days (d) within 20 days
48) All Counterfeit Notes received back from the police authorities/courts may be carefully preserved in the safe custody of
the bank and a record thereof be maintained by the branch concerned. These Counterfeit Notes at branches should be subjected
to verification on a _____ basis by the Officer-in- Charge of the bank office concerned. They should be preserved for a period of
____years from the date of receipt from the police authorities.
a) Half-yearly; 3 b) Yearly; 3 c) Quarterly; 3 d) Bi-monthly; 3
49) As per RBI guidelines, Counterfeit notes, which are the subject matter of litigation in the court of law should be preserved
with the branch concerned for a period of ____ years after conclusion of the court case.
a) 1 year b) 2 years c) 3 years d) 4 years
50) As per RBI guidelines relating to reporting of Currency Chest Transactions, the minimum amount of deposit
into/withdrawal from currency chest will be ______ and thereafter, in multiples of Rs._____.
51) a) 50,000; 10,000 b) 1,00,000; 50,000 c) 1,50,000; 50,000 d) 2,00,000; 1,00,000
52) The coins of denomination of ____, issued from time to time, ceased to be legal tender for payments as well as account with
effect from June 30, 2011: a) 20 Paise and below b) 25 Paise and below c) 50 Paise and below d) All of these.
53) All coins of denomination of 25 Paise and below should be retained in the (SCDs) of the bank till further advise from Reserve
Bank of India. What does SCD stand for?
a) Small Coin Depots b) Small Currency Depots c) Small Coin Deposits d) Small Currency Deposits
54) The study of counterfeit currency has unearthed that fake Indian currency notes (FICN) worth Rs. _____ crore are infused into
the Indian market every year with agencies only being able to intercept one third of them:
a) Rs. 50 Crore b) Rs. 60 Crore c) Rs. 70 Crore d) Rs. 80 Crore
55) With regards to RBI guidelines relating to Time Limit for Reporting, the currency chests should invariably report all
transactions through ICCOMS on the same day by ______ by uploading data through the Secured Website (SWS) to their
respective link offices. Link offices should invariably report the consolidated position to the Issue Offices latest by ____on the
same day. a) 7 PM; 9PM b) 8 PM; 10PM c) 9 PM; 11PM d) 10 PM;12PM e) 11 PM; 12 PM
56) In the event of delay in reporting currency chest transactions, penal interest will be levied on the amount due from the chest
holding bank for the period of delay which will be calculated on _____basis. However, Reserve Bank may at its discretion grant
appropriate grace period in the matter of levy of penal interest. a) T+0 basis b) T+1 basis c) T+2 basis d) T+3 basis
57) Which of the following points are true with respect to levy of Penal interest on wrong reporting?
a) Penal interest will be levied in respect of all cases of wrong reporting in the same manner till the date of receipt of corrected
advice by Reserve Bank.
b) Penal interest will invariably be levied in all cases of wrong reporting in the Link Office Statements even if the reporting was
done correctly in the chest slips. c) Both of these. d) None of these.
58) As per RBI guidelines, Soiled note remittances to RBI /diversion to other currency chest/s should not be shown as
withdrawal by chest/s / link offices. In case such remittances are wrongly reported as 'withdrawals', a penalty of ______ will be
levied irrespective of the value of remittance and period of such wrong reporting:
a) Rs. 25,000 b) Rs. 35,000 c) Rs.50,000 d) Rs.75,000
59) Penal interest will be levied in all cases where the bank has enjoyed 'ineligible' credit in its current account with Reserve Bank
on account of which of the following reasons pertaining to transactions?
a) Wrong reporting / delayed reporting / non-reporting of transactions
b) Shortages in chest balances / remittances
c) Shortages due to pilferage / frauds
d) Counterfeit banknotes detected in chest balances /
e) Remittances as per the prevailing “scheme of Penalties” f) All of the above.
60) Which type of cash balance is not eligible for inclusion in the Chest balances?
i) Cash held in the custody of joint custodians and 'freely available' to them.
ii) Cash kept for safe custody in sealed covers for whatever reasons.
iii) Cash in trunks/bins under the lock and key of any official/s other than the Joint Custodians or bearing a third lock put by any
official in addition to the two locks of the Joint Custodians: a) All from (i) to (iii) b) (i) & (ii) only, c) (ii) & (iii) only d) (i) & (iii)
61) Penal interest shall be levied at the rate of ___ over the prevailing Bank Rate for the period of delayed reporting / wrong
reporting/non-reporting / inclusion of ineligible amounts in chest balances: a) 1% b) 2% c) 3% d) 4%
62) Representations made for reconsideration of the Reserve Bank's decision for levy of penal interest for delayed reporting on
account of genuine difficulties faced by chests especially in hilly/remote areas and those affected by natural calamities, etc., may
be made to the Issue Office concerned through the Head / Controlling office of the bank concerned within ___ from date of debit
of the bank concerned: a) A week b) A fortnight c) A month d) Two months
63) What is the Penalty to be imposed on banks for deficiencies in exchange of notes and coins/remittances sent to
RBI/operations of currency chests etc. with respect to shortages in soiled note remittances and currency chest balances for notes
in denomination upto Rs.50? a) Rs. 50 per piece in addition to the loss , b) Rs.25 per piece in addition to the loss
c) Rs. 20 per piece in addition to the loss , d) Rs.10 per piece in addition to the loss
64) What is the penalty to be imposed on banks for deficiencies in exchange of notes and coins/remittances sent to
RBI/operations of currency chests etc. with respect to shortages in soiled note remittances and currency chest balances for notes
in denomination of Rs. Rs.100 & above?
a) Equal to the value of the denomination per piece in addition to the loss, b) Rs. 80 per piece in addition to the loss ,
c) Rs. 75 per piece in addition to the loss , d) Rs. 50 per piece in addition to the loss.
65) In case, mutilated notes detected in soiled note remittances and currency chest balances, the penalty levied shall be _____per
piece irrespective of the denomination. a) Rs. 20 b) Rs. 50 c) Rs. 75 d) Rs. 100
66) In case, mutilated notes detected in soiled note remittances and currency chest balances, mutilated notes of 100 pieces and
above per remittance shall be debited immediately and penalty may be levied on reaching a limit of ______ in a cumulative
manner. a) 50 pieces b) 70 pieces c) 100 pieces d) 125 pieces
67) In case of non-compliance with operational guidelines by currency chests is detected by RBI officials such as Nonfunctioning of
CCTV; Branch cash/documents kept in strong room; Non-utilization of NSMs for sorting of notes the penalty of Rs. _____ shall be
levied for each irregularity & same shall be enhanced to Rs. _____ in case of repetition.
a) Rs. 2500; Rs. 5,000 b) Rs. 5,000; Rs. 10,000 c) Rs. 10,000; Rs. 15,000 d) Rs. 10,000; Rs. 20,000
68) As per RBI guidelines, appeal against the decision of the competent authority can be made with regards to imposition of
penalty for non-compliance with operational guidelines by the Controlling Office of the currency chest/branch to the Regional
Director of the Regional Office concerned, within _____ from the date of debit, who may decide whether the same can be
accepted/ rejected: a) 2 months b) 1 month* c) 15 days d) 1 week
69) All chest branches are required to submit to Issue Offices a _____ statement showing the number of notes adjudicated
during that period: - a) Fortnightly b) Monthly c) Quarterly d) Half Yearly
70) Which of the following points are correct with regards to agreement between RBI and commercial banks relating to
acceptance of coins in exchange of notes?
a) The bank branches should accept coins in exchange of notes.
b) They should accept coins of all denominations which are legal tender under the Indian Coinage Act, 2011 from any member of
public without any restriction and pay the value in notes.
c) They should use Coin counting machines or accept coins by weight for large receipts to facilitate the customers.
d) Only a & b e) All (a), (b) & (c)
ANSWER
1 B 2 C 3 D 4 A 5
6 7 C 8 C 9 D 10 B
11 D 12 D 13 B 14 A 15 B
16 C 17 A 18 D 19 D 20 B
21 B 22 C 23 B 24 B 25 D
26 B 27 C 28 B 29 D 30 D
31 B 32 C 33 B 34 C 35 A
36 D 37 C 38 D 39 C 40 B
41 B 42 C 43 C 44 C 45 C
46 C 47 A 48 A 49 C 50 B
51 C 52 B 53 A 54 C 55 C
56 A 57 C 58 C 59 F 60 C
61 B 62 C 63 A 64 A 65 B
66 C 67 B 68 B 69 B 70 E
SMALL BANK, PAYMENT BANK & UNIVERSAL BANK

MCQ on Small Finance Banks and Payment Banks
01 What is minimum capital adequacy ratio prescribed for Small Finance Banks:
(a) 20% of risk weighted assets (b) 15% of risk weighted assets
(c) 10% of risk weighted assets (d) 9% of risk weighted assets
02 What is the Common Equity Tier 1 capital ratio prescribed for Small Finance Banks:
(a) 4.5% of risk weighted assets (b) 5.5% of risk weighted assets
(c) 6% of risk weighted assets (d) 7.5% of risk weighted assets
03 What is the permitted Tier 2 capital ratio prescribed for Small Finance Banks:
04 What is the leverage ratio prescribed for Small Finance Banks:
05 Small Finance Banks are required to have ____% of their branches in unbanked rural centres within one year from the date of
commencement of operations. (a) 10% (b) 15% (c) 20% (d) 25%
06 Small Finance Banks are required to send statement of accounts to customer, once in ____ to the registered address, free of
cost, if passbooks have not been issued; (a) six months (b) three months (c) two months (d) one month
07 Small Finance Banks can conduct foreign exchange business as:
(a) Category -1 AD (b) Category – 2 AD (c) Category-3 Ad (d) Money Changer
08 What is minimum capital adequacy ratio prescribed for Payment Banks:
(a) 20% of risk weighted assets (b) 15% of risk weighted assets
(c) 10% of risk weighted assets (d) 9% of risk weighted assets
09 What is the Common Equity Tier 1 capital ratio prescribed for Payment Banks:
10 What is the permitted Tier 2 capital ratio prescribed for Payment Banks:
11 Payment Banks are required to have ____% of their physical access points in unbanked rural centres within one year from the
date of commencement of operations. (a) 10% (b) 15% (c) 20% (d) 25%
12 Payment Banks are to maintain a minimum investment to the extent of not less than ____ of ‘demand deposit balances’ as on
three working days prior to that day, in Government securities/Treasury Bills with maturity up to one year that are recognized by
RBI as eligible securities for maintenance of Statutory Liquidity Ratio.- (a) 75% (b) 60% (c) 50% (d) 25%
13 Payment Banks can maintain balances in demand and time deposits with other scheduled commercial banks, which shall not
be more than ____of their demand deposit balances as on three working days prior to that day.
14 Payment Banks cannot accept which of the following types of deposits?
(a) saving bank (b) term deposits (c) current accounts (d) none of the above
15 The aggregate amount of deposit that can be accepted by Payment Banks per customer shall not exceed ___:
(a) Rs.50000 (b) Rs.1 lac (c) Rs.2 lac (d) bank discretion
16 Payment Banks for the foreign exchange business are required to comply with the conditions as applicable to:
(a) Category -1 AD (b) Category – 2 AD (c) Category-3 Ad (d) Money Changer
17 In a new private universal bank the promoter/s and the promoter group / NOFHC, as the case may be, shall hold a minimum of
____ of the paid-up voting equity capital of the bank which shall be locked-in for a period of five years from the date of
commencement of business of the bank. - (A) 25% (b) 26% (c) 40% (d) 49%
18 The foreign shareholding in a new private universal bank, in the form of FDI, can be __ of paid up capital:
(a) max 74% (b) max 51% (c) max 26% (d) max 24%
19 A new private universal bank is required to open at least ____ of its branches in unbanked rural centres (population up to
9,999 as per the latest census) - (a) 10% (b) 25% (c) 40% (d) 50%
20 The validity of the in-principle approval issued by RBI to open a new private universal bank will be ____ from the date of
granting in-principle approval and would thereafter lapse automatically.
(a) 6 months (b) 9 months (c) 12 months (d) 18 months
21 If a private universal bank is to be opened by Individuals/ professionals who are ‘residents’, they should have ____ years of
experience in banking and finance at a senior level.- (a) 5 years (b) 10 years (c) 12 years (d) 15 years
22 Individual promoters/promoting entities/converting entities that have other group entities, shall set up the private universal
bank only through an Non-Operative Financial Holding Company (NOFHC). Not less than percent of the total paid-up equity
capital of the NOFHC shall be owned by the Promoter/Promoter Group.
(a) 25% (b) 26% (c) 49% (d) 51%
23 For a private universal bank, the initial minimum paid-up voting equity capital for a bank shall be ____ :
(a) Rs. 1 billion (b) Rs.2 billion (c) Rs.5 billion (d) Rs.10 billion
ANSWER
1 B 2 C 3 D 4 A 5 D
6 A 7 B 8 B 9 C 10 D
11 D 12 A 13 D 14 B 15 B
16 B 17 C 18 A 19 B 20 D
21 B 22 D 23 C
ADVANCES : MCQ ON MCLR

1 Which of the following is not a component of marginal cost of funds based lending rate (MCLR) which is an internal benchmark:
(a)marginal cost of funds (b) negative carry on account of CRR and SLR (c) operating cost (d) tenor premium
2 Negative carry on the mandatory CRR which arises due to return on CRR balances being nil, is calculated as under for the purpose of marginal
cost of funds based lending rate (MCLR): (a)required CRR x marginal cost / (1 – CRR) (b) required CRR / marginal cost / (1 – CRR)
(c) required CRR + marginal cost / (1 – CRR) (d) required CRR x marginal cost / (1 + CRR)
3 Under the marginal cost of funds based lending rate (MCLR), the banks are required to publish the internal benchmark for the following
maturities (1) overnight MCLR (2) one-month MCLR (3) three month MCLR (4) six month MCLR
(a)1 only (b) 1 and 3 only (c) 1, 3 and 4 only (d) 1 to 4 all
4 The following categories of loans can be priced without being linked to MCLR as the benchmark for determining interest rate: (1)
Advances to banks’ depositors against their own deposits. (2) Advances to banks’ own employees including retired employees. (3)
Advances granted to the Chief Executive Officer / Whole Time Directors. (4) Loans linked to a market determined external benchmark.
(a)1 only (b) 1 and 3 only (c) 1, 3 and 4 only (d) 1 to 4 all
5. Banks are to review and publish their Marginal Cost of Funds based Lending Rate (MCLR) of different maturities every ___ on a
pre-announced date with the approval of the Board or any other committee to which powers have been delegated.
(a)fortnight (b) month (c) quarter (d) six months
6 Banks can reset the interest rates under Marginal Cost of Funds based Lending Rate (MCLR) system, for which the periodicity can be:
(a)one year or lower (b) 6 months or lower (c) 3 months or lower (d) 1 month or lower
7.Under Marginal Cost of Funds based Lending Rate (MCLR) system, the marginal cost of borrowings shall have a weightage of ___ % of
Marginal Cost of Funds while return on networth will have the balance weightage of ___%. (a) 50%, 50% (b) 75%, 25
(c) 90% , 10% (d) 92%, 8%
8. Govt. of India has established Central KYC Records Registry (CKYCR) under provisions of which of the following Act, as amended
from time to time? (a)RBI Act 1934 (b) Prevention of Money Laundering Act 2002 (c) Banking Regulation Act 1949 (d)
Negotiable Instruments Act 1881
9 Banks can extend financial assistance to support the factoring business of Factoring Companies complying with certain criteria, which,
inter-alia states that they derive at least ____ of their income from factoring activity.
(a) 80% (b) 75% (c) 60% (d) 50%
10. ECS (Credit) payments can be initiated by any institution (called ECS user) : (a)which has to make small payments (b) which has
to recover amount of bills repeatedly (c) which has to make large size payments in small numbers (d) which has to make bulk or
repetitive payments of small amounts to a number of beneficiaries.
FINANCIAL INCLUSION & GOVT. SCHEMES
11 Under the structure of Financial Literacy Centre (FLC) Scheme, the FLC and rural branches are to arrange ____ outdoor
special camps for newly included persons: (a) minimum one camp per fortnight (b) minimum one camp per month
(c) minimum one camp per quarter (d) minimum one camp per half-year
12 Under the structure of Financial Literacy Centre (FLC) Scheme, the FLC and rural branches are to arrange ____ camps for target group
persons such as farmers, SHG, MSEs, school children etc: (a) minimum one camp per fortnight (b) minimum one camp per month
(c) minimum one camp per quarter (d) minimum one camp per half-year
13 Report about activities of financial literacy centres (FLC) is to be sent to Regional Office RBI, within :
(a) 20 days from end of each month (b) 20 days from end of each quarter
(c) one month from end of each half-year (d) one month from end of each financial year
14 SLBC Convenor banks are to identify villages with population _____ without a bank branch of a scheduled commercial bank in their
State to ensure that opening of bank branches should be completed by March 31, 2017.
(a) below 2000 (b) above 2000 (c) below 5000 (d) above 5000
NULM
15 Under DDU – National Rural Livelihood Mission, interest subvention is available to a bank for lending to women self group in
250 specified districts, if the rate of interest charged from borrower is: \
a) 4% (b) 7% (c) base rate of the bank (d) MCLR of the bank
16 Under DDU – National Rural Livelihood Mission, interest subvention is available to a bank for lending to women self group in
250 specified districts, for loan amount up to : - (a) Rs.2 lac (b) Rs.3 lac (c) Rs.5 lac (d) bank discretion
17 Under DDU – National Rural Livelihood Mission, interest subvention is available @ _____ to a bank for lending to women self
group in 250 specified districts, if other conditions such as rate of interest and amount of loan are satisfied:
(a) rate of interest of the bank less 7% subject to maximum of 3%
(b) weighted average rate of interest as determined by the bank less 7% subject to maximum of 5%
(c) weighted average rate of interest as determined by the bank less 7% subject to maximum of 5.5%
(d) weighted average rate of interest as determined by Ministry of Finance less 7% subject to maximum of 5.5%
18 Under DDU – National Rural Livelihood Mission, special interest subvention is available for prompt payment @ _____ to
women self group in 250 specified districts. In such cases, the effective interest rate for the borrower shall be:
(a) 3%, 2% (b) 3%, 4% (c) 2%, 3% (d) 2%, 4%
CGTMSE & MSME
19 Under CGTMSE guarantee scheme for MSE, the maximum amount of eligible loan is ___ wef 01.01.17:
20 Under CGTMSE guarantee scheme for MSE, the maximum amount of claim payable by CGTMSE is restricted to ___ wef
01.01.17: (a) Rs.200 lac (b) Rs.100 lac (c) Rs.50 lac (d) Rs.25 lac
21 Under CGTMSE guarantee scheme for MSE, the guarantee cover available for a loan up to Rs.50 lac to women enterprises or
loan in NE States is ___ wef 01.01.17: (a) 85% of amount in default max Rs.42.50 lac (b) 80% of amount in default max Rs.40 lac
(c) 75% of amount in default max Rs.37.50 lac (d) 50% of amount in default max Rs.25 lac
22 Under CGTMSE guarantee scheme for MSE, the guarantee cover available for a loan above Rs.50 lac up to Rs.200 lac to women
enterprises or loan in NE States is ___ wef 01.01.17:
(a) 85% of amount in default (b) 80% of amount in default (c) 75% of amount in default (d) 50% of amount in default
23 Under CGTMSE guarantee scheme for MSE, the guarantee cover available for a loan up to Rs.5 lac to a micro enterprises, is ___
wef 01.01.17: (a) 85% of amount in default max Rs.4.25 lac (b).80% of amount in default max Rs.4 lac
(c).75% of amount in default max Rs.3.75 lac (d).50% of amount in default max Rs.2.50 lac
24 Under CGTMSE guarantee scheme for MSE, the guarantee cover available for a loan up toRs. 50 lac to a micro enterprises, is
___ wef 01.01.17: (a).85% of amount in default max Rs.42.50 lac (b).80% of amount in default max Rs.40 lac
(c).75% of amount in default max Rs.37.50 lac (d). 50% of amount in default max Rs.25 lac
25 Under CGTMSE guarantee scheme for MSE, the rate of interest (including cost of guarantee cover) on an
eligible loan can be max ___ wef 01.01.17: (a).14% p.a. (b).12% p.a. (c).MCLR + 3% (d). MCLR + 4%
PSLC
26 Priority sector lending certificates (PSLC) can be issued by banks in respect of their (1) eligible agriculture loans (2) eligible loans to
small and marginal farmers (3) all loans to MSME sector (4) priority sector loans other than agriculture and MSME
(a) 1 to 4 all (b) 1 and 3 only (c) 1, 2 and 3 only (d) 1, 3 and 4 only
27 Normally Priority sector lending certificates can issued against the underlying assets. But a bank is permitted by to issue PSLCs
upto ___ of previous year’s PSL achievement without having the underlying in its books.
(a) 10% (b) 25% (c) 33% (d) 50%
28 Priority sector lending certificates (PSLC) will expire _____ irrespective of the date it was first sold.
st
(a) within 3 months (b) within 6 months (c) within 9 months (d) by 31 March
29 Priority sector lending certificates (PSLC) can be issued with a standard lot size of ___ and multiples thereof.
30 In case of cash credit which of the following is correct statement:
(a) in hypothecation ownership is with the bank. (b) in cash credit pledge, the possession with the borrower
(c) in case of hypothecation the possession is with the bank (d) in case of pledge the ownership remains with the borrower
(e) in case of hypothecation ownership and possession is with the bank
MCQ on PM Fasal Bima Yojna
31 The implementing agency of Pradhan Mantri Fasal Bima Yojna is : (a) Ministry of Rural Development, Govt.of India (b)
Ministry of Agriculture, Govt. of India (c) Agriculture Insurance Co. Limited (d) Commercial banks
32 Unit area of insurance under Pradhan Mantri Fasal Bima Yojna is: (a) Farmer land holding (b) village (c)district ( d ) S t a t e
33 Which crops are covered by Pradhan Mantri Fasal Bima Yojna :(a) all crops (b) notified crops
(c) all crops in notified areas where yield data is available (d) discretion of insurance company
34 Which farmers are covered by Pradhan Mantri Fasal Bima Yojna :
(a) farmers who have raised crop loans and renewed their limit (b)farmers who have raised crop loans
and not renewed their limit (c) farmers who have not raised loans (d) all farmers
35 Which of the following risk is covered by PM Fasal Bima Yojna : (1) yield losses (2) prevented sowing losses (3) post harvest losses
(4) localized calamities (5) war and nuclear risk -- (a) 1 to 5 all (b) 1 to 4 only (c) 1 to 3 only (d) 1 only
36 Which risk out of the following is not covered by PM Fasal Bima Yojna :
(a) war and kindred perils (b) nuclear risk, (c) riot, theft, malicious damages, act of enmity (d) all the above
37 What is the amount of insurance where farmer is a loanee farmer under Pradhan Mantri Fasal Bima Yojna :
(a) value of crop (b) threshold yield x MSP or gate price of the insured crop
(c) scale of finance (d) scale of finance or up to value of threshold yield at option of the farmer
38 What is the amount of insurance where farmer is not a loanee farmer under PM Fasal Bima Yojna :
(a) value of crop (b) threshold yield x MSP or gate price of the insured crop
(c) scale of finance (d) scale of finance or up to value of threshold yield at option of the farmer
39 Actuarial premium rate (APR) is charged under Pradhan Mantri Fasal Bima Yojna, which is presently fixed at ___ in case of Annual
commercial or horticulture Crops:
(a) 2% of sum insured or actuarial rate whichever is less (b) 1.5% of sum insured or actuarial rate whichever is less
(c) 5% of sum insured or actuarial rate whichever is less (d) at rates negotiated by the bank and insurance company
40 Actuarial premium rate (APR) is charged under Pradhan Mantri Fasal Bima Yojna, which is presently fixed at ___ in case of Rabi
Crops:
(A) 2% of sum insured or actuarial rate whichever is less (b) 1.5% of sum insured or actuarial rate whichever is less
41 Actuarial premium rate (APR) is charged under Pradhan Mantri Fasal Bima Yojna, which is presently fixed at ___ in case of
Khariff Crops: (a) 2% of sum insured or actuarial rate whichever is less (b) 1.5% of sum insured or actuarial rate whichever is less
42 Under Pradhan Mantri Fasal Bima Yojna, the risk to be shared by the Insurance agency is:
(a) 150% of total premium collected or 35% of total sum insured whichever is higher
(b) 250% of total premium collected or 25% of total sum insured whichever is higher
(c) 350% of total premium collected or 35% of total sum insured whichever is higher
(d) 50% of total premium collected or 25% of total sum insured whichever is higher
43 Under Pradhan Mantri Fasal Bima Yojna, the risk sharing ratio between Central and State Govt. is:
(a) 75:25 (b) 60:40 ( c ) 5 0 : 5 0 ( d ) 3 3 : 6 7
44 There are 3 indemnity levels under Pradhan Mantri Fasal Bima Yojna :
(a) 70%, 80%, 90% (b) 60%, 70%, 80% (c) 50%, 60%, 70% (d) 40%, 50%, 60%
MCQ on Credit Guarantee Fund Scheme for Education Loans
45 Under Credit Guarantee Fund Scheme for Education Loans offerred by National Credit Guarantee Trust Company, the amount of
eligible education loan is up to : (a) Rs.5 lac (b) Rs.7.50 lac (c) Rs.10 lac(d) Rs.15 lac
46 Under Credit Guarantee Fund Scheme for Education Loans offerred by National Credit Guarantee Trust Company, the margin on
eligible education loan is (find the correct): (a) Nil for loan up to Rs.4 lac (b)5% for loan above Rs.4 lac for education in India
(c) 15% for loan above Rs.4 lac for education in India (d) all the above
47 Under Credit Guarantee Fund Scheme for Education Loans offerred by National Credit Guarantee Trust Company, to be eligible for
guarantee, the rate of interest on the loan can be maximum :
(a) base rate + 2% (b) base rate + 4% c bank rate + 2% (d) bank rate + 4%
48 Under Credit Guarantee Fund Scheme for Education Loans offerred by National Credit Guarantee Trust Company, the annual
guarantee fee is ___ of outstanding balance on date of application for guarantee cover.
( a ) 0 . 2 5 % ( b ) 0 . 5 % (c) 0.75% (d) 1%
49 Under Credit Guarantee Fund Scheme for Education Loans offerred by National Credit Guarantee Trust Company, the
prescribed annual guarantee fee is payable within ___ from the date of Credit Guarantee Demand Advice Notice of guarantee fee:
50 Under Credit Guarantee Fund Scheme for Education Loans offerred by National Credit Guarantee Trust Company, ___ amount
of the claim payable is to be paid within 30 days -- ( a ) 7 0 % (b) 75% (c) 80% (d) 85%
MCQ on Interest Subvention
51 On short term crop loans, interest subvention of 2% is available to ___ :
(a) public sector banks (b) private sector banks
(c) public sector banks and loans in rural and semi-branches given by Private sector banks (d) farmers
52 For availing short term crop loan interest subsidy, the eligible loan amount is:
(a) up to Rs.3 lac (b) up to Rs.2 lac (c) up to Rs.1 lac (d) any amount
53 To avail short term crop loan interest subsidy, the rate of interest from borrower should be:
(a) 4% pa (b) 5% pa (c) 6% pa (d) 7% pa
54 Additional interest subvention of ___ % is available to prompt payee farmers from date of disbursement of crop loan up to
actual date of repayment by farmer or up to due date fixed by bank, whichever is earlier:
(a) 1% (b) 2% (c) 3% (d) 4%
55 If additional interest subvention is available to prompt payee farmers for short term crop loan, the effective interest rate shall
be: (a) 1% (b) 2% (c) 3% (d) 4%
56 In order to discourage distress sale by farmers and to encourage them to store their produce in warehouses against warehouse
receipts, the benefit of interest subvention will be available to small and marginal farmers having Kisan Credit Card for a further
period of upto ____ post¬harvest on the same rate as available to crop loan against negotiable warehouse receipt for keeping
their produce in warehouses.
(a) 3 months (b) 6 months (c) 9 months (d) 12 months
57 To provide relief to farmers affected by natural calamities, the interest subvention of 2% will continue to be available to banks
for the _____ on the restructured amount.
(a) 1st six months (b) 1st year (c) 1st 2 years (d) moratorium period
58 Banks are required to submit their claims for interest subvention of 2% and 3% on:
(a) half yearly basis (b) yearly basis
(c) half yearly for 2% and yearly for 3% subvention (d) half yearly for 3% and yearly for 2% subvention
ANSWER
1 B 2 A 3 A 4 D 5 D
6 B 7 D 8 B 9 D 10 D
11 B 12 B 13 A 14 D 15 B
16 B 17 C 18 B 19 A 20 B
21 B 22 D 23 A 24 C 25 A
26 A 27 D 28 D 29 B 30 D
31 B 32 B 33 C 34 D 35 B
36 D 37 D 38 B 39 C 40 B
41 A 42 C 43 C 44 A 45 B
46 D 47 A 48 B 49 D 50 B
51 C 52 A 53 D 54 C 55 D
56 B 57 B 58 C
NPA & RECOVERY MANAGEMENT

1 With a view to monitoring the performance of banks in providing credit to the specified minority communities, data on credit
assistance provided to members of minority communities is to be furnished to RBIand to the Govt. of India, on half yearly basis as
on the last Friday of March and September every year within ___ from the close of each half year.
(a) 10 days (b) 15 days (c) one month (d) two months
2 A lending institution can consider publication of the photographs of borrowers/ proprietors/ partners / directors / guarantors of
borrower firms/ companies:(a) who have defaulted in loan repayment (b) whose accounts have been classified as Red Flagged
accounts (c) who have been declared willful defaulters (d) all the above
3 According to provisions of The Enforcement of Security Interest and Recovery of Debt Law and Misc. Provisions (Amendment)
Act 2016, the Distt. Magistrate when approached by a bank under SARFAESI Act shall complete the process of possession of
charged security within: (a) 10 days (b) 20 days (c) 30 days (d) 45 days
Act 2016, RBI can impose penalty of on an Asset _____ Reconstruction Company for non-compliance of RBI directions:
(a) up to Rs.5 cr (b) up to Rs.1 cr (c) up to Rs.50 lac(d) up to Rs.10 lac
Act 2016, the govt. can create a central database of charges by integrating the registration records under (1) Companies Act 2013
(2) Registration Act 1908 (3) Merchant Shipping Act 1958 (4) Motor Vehicles Act etc.
(a) 1 to 4 all (b) 1 to 3 only (c) 1 and 4 only (d) 1 only
Act 2016, the age limit of Presiding Officer of Debt Recovery Tribunal (under RDDBFI Act) has been raised from :
(a) 60 to 62 years (b) 62 to 63 years (c) 62 to 65 years (d) 62 to 67 years
Act 2016, the age limit of Chairperson of Debt Recovery Appellate Tribunal (under RDDBFI Act) has been raised from:
(a) 62 to 65 years (b) 62 to 65 years (c) 65 to 67 years (d) 65 to 70 years
Act 2016 amending the RDDBFI Act, the defendant is required to submit a statement of defence in writing within a period of ____
from date of receipt of summons from Debt Recovery Tribunal:
Act 2016 amending the RDDBFI Act, the time available for making appeal against order of DRT to DRAT has been reduced from:
(a) 60 days to 45 days (b) 60 days to 30 days (c) 45 days to 30 days (d) 45 days to 15 days
10. According to provisions of The Enforcement of Security Interest and Recovery of Debt Law and Misc. Provisions (Amendment)
Act 2016 amending the RDDBFI Act, the amount which is required to be deposited by defendant borrower before making appeal
against order of DRT to DRAT has been reduced from:
(a) 75% of amount of debt due to 50% of amount due
(b) 75% of amount of debt due to 60% of amount due
(c) 75% of amount of debt due to 25% of amount due
(d) 75% of amount of debt due to 0% of amount due
Act 2016 amending the RDDBFI Act, the amount which is required to be deposited by defendant borrower before making appeal
against order of DRT to DRAT can be reduced by DRAT, which should not be less than __ after such reduction:
(a) 75% of amount of debt due (b) 50% of amount of debt due
(c) 25% of amount of debt due (d) 0% of amount of debt due
Act 2016 amending the RDDBFI Act, Presiding Officer of DRT, after issue of recovery certificate, can allow extra time, if acceptable
to bank/FI, for payment by defendant, where he makes payment of at least ___ of amount specified in the Recovery Certificate.
(a) 10% (b) 25% (c) 40% (d)50%
Act 2016 amending the RDDBFI Act, where the borrower wants to make an appeal to DRT against order of Recovery Officer, he
has to deposit ____ of amount due, before the appeal is entertained by DRT.
(a) 10% (b)25% (c) 40% (d)50%
MCQ on MSME Rehabilitation Framework
14 The Framework notified by RBI during March 2016 for revival and rehabilitation of MSMEs can be used for MSME loans for limit up
to: (a) Rs.50 cr (b) Rs.25 cr (c) Rs.10 cr (d) Rs.5 cr
15 Restructuring of loans of _____ relating to MSME will be governed by the extant guidelines on Corporate Debt Restructuring / Joint
Lenders’ Forum mechanism: (a) above Rs.50 cr (b) above Rs.25 cr (c) above Rs.10 cr (d) above Rs.5 cr
16 Under the Framework for Revival & Rehabilitation of MSMEs mechanism, the branch maintaining the account should forward the
details of stressed account with loan limits _____ to the Committee constituted under the mechanism, for suitable corrective action
plan (CAP)? (a) above Rs.50 lac (b) above Rs.25 lac (c) above Rs.10 lac (d) above Rs.5 lac
17 Under the Framework for Revival & Rehabilitation of MSMEs mechanism, the branch maintaining the account should forward the
details of stressed account with loan limits falling under the prescribed cut off celing, to internal Committee at Distt/Regional/ Zonal
level constituted under the mechanism within a period of ___ for suitable corrective action plan (CAP)?
(a) 5 banking days (b) 10 banking days (c) 15 banking days (d) 25 banking days
18 A borrower can voluntarily initiate the proceedings under the Framework for Revival & Rehabilitation of MSMEs mechanism if any
of the following condition is satisfied: (a) apprehension about failure of business (b) inability or likely inability to pay
debts (c) erosion in net worth due to accumulated loss to the extent of 50% of NW (d) any of the above
19 When a request is received from borrower to initiate the proceedings under the Framework for Revival & Rehabilitation of
MSMEs mechanism by the Standing Committee for Stressed Assets, it should convene a meeting for corrective action plan (CAP)
within: (a) 5 banking days (b) 10 banking days (c) 15 banking days (d) 30 banking days
20 When a request is received under the Framework for Revival & Rehabilitation of MSMEs mechanism by the Standing
Committee for Stressed Assets, it has to write to statutory creditors regarding outstanding liabilities for making claim within a
period of: (a) 5 banking days (b) 10 banking days (c) 15 banking days (d) 30 banking days
21 For consortium or MBA loans Under the Framework for Revival & Rehabilitation of MSMEs mechanism, the Standing Committee
for Stressed Assets shall take a decision about corrective action plan (CAP) within:
22 For consortium or MBA loans under the Framework for Revival & Rehabilitation of MSMEs mechanism, if Techno-Economic
Viability (TEV) is to be conducted, the Standing Committee for Stressed Assets shall finalize the terms of restructuring within ___
when the amount is up to Rs.10 cr: a) 5 working days (b) 15 working days (c) 20 working days (d) 30 working days
23 Under the Framework for Revival & Rehabilitation of MSMEs mechanism, upon finalization of terms of corrective action plan, the
implementation will be completed within ____ if CAP is restructuring and within ___ if CAP is rectification:
(a) 60 days and 30 days (b) 90 days and 30 days (c) 90 days and 60 days (d) 60 days and 90 days
24 Under the Framework for Revival & Rehabilitation of MSMEs mechanism, the basis for proceeding with a decision is agreement of
the majority of banks which means ___ majority by amount and ___ by no. of banks.
(a) 50%, 60% (b) 60%, 75% (c) 80%, 60% (d) 75%, 50%
25 You are incharge of loans department in your branch. In which situation, in the loan accounts the interest can be debited and
taken to income to in-crease the profits:
(a) It has become due (b) It has become due and stands recovered if it is NPA account
(c) It has become due and account has not been a non-performing account (d) b and c above (e): None of the above
ANSWER
1 C 2 C 3 C 4 B 5 A
6 C 7 D 8 B 9 C 10 A
11 C 12 B 13 D 14 B 15 B
16 C 17 A 18 D 19 A 20 C
21 D 22 C 23 B 24 D 25 D
GENERAL BANKING - INCOME TAX RELATED QB

01 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114B), w.e.f. 1.1.2016, quoting of permanent account number (PAN) is not
mandatory for opening ___ : (a) a saving bank account (b) a current account (c) a basic saving bank deposit account (d) for
issue of credit card or debit card
02 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114B), w.e.f. 1.1.2016, quoting of permanent account number (PAN) is
mandatory for depositing cash _____ with a bank, on any one day:
(a) above Rs.10000 (b) above Rs.20000 (c) above Rs.25000 (d) above Rs.50000
mandatory for purchase of demand draft or pay order or bankers’ cheque by depositing cash above Rs._____ during any one day:
(a Rs.100000 (b) Rs 500000 (c) Rs 25000 (d) Rs 20000
mandatory for a time deposit exceeding Rs. _____ or aggregating to more than Rs.____ in a financial year:
(a) Rs.10000, Rs.1 lac (b) Rs.20000, Rs.2 lac (c) Rs.50000, Rs.5 lac (d) Rs.1 lac, Rs.10 lac
0 Rs.100000 (b) Rs 50000 (c) Rs 25000 (d) Rs 200000
06 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114B), w.e.f. 1.1.2016, quoting of permanent account number (PAN) of
______ is mandatory if the transaction requiring PAN details are in the name of minor:
(a) father (b) mother (c) guardian (d) any of the above
07 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114B), w.e.f. 1.1.2016, where quoting of permanent account number (PAN) is
mandatory and the person concerned does not have PAN, he is required to make a declaration on Form No.___
( a ) 6 0 ( b ) 6 1 A ( c ) 1 5 G (d) 15H
08 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114C), w.e.f. 1.1.2016, relating to permanent account number (PAN) where a
bank receives declaration on Form 60, in the absence of PAN, it is required to preserve Form 60 for ____ from end of the financial year in
which the transaction was undertaken: - (a) 7 years (b) 6 years (c) 5 years (d) 3 years
09 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114C), w.e.f. 1.1.2016, relating to permanent account number (PAN) where a
bank receives declaration on Form 60, in the absence of PAN, a consolidated statement is to be submitted to Income Tax department for HY
ended Sept and March, within ___ from close of the HY:-(a) 10 days (b) 15 days (c) one month (d) two months
10 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114E), w.e.f. 1.4.2016, banks are to send report about payment in cash for
purchase of pre-paid payment instruments or demand drafts or pay orders or banker’s cheque of an amount aggregating to Rs. ___ or above in
a financial year, to Income Tax Department, through the Statement of Financial Transactions:
11 As per Income–tax (22nd Amendment) Rules, 2015 (Rule 114E), w.e.f. 1.4.2016, banks are to send report to Income Tax Department,
through the Statement of Financial Transactions about cash deposit or cash withdrawal (including through bearer cheques) aggregating
to Rs. ___ or above in a financial year from current account of a person:
-(a) Rs.10 lac (b) Rs.20 lac (c) Rs.50 lac (d) Rs.1 cr
through the Statement of Financial Transactions about deposit of cash in one or more bank accounts (other than current account and
term deposit) by a person of an amount aggregating to Rs. ___ or above in a financial year:
through the Statement of Financial Transactions about one or more time deposits (other than by way of renewal), of a person of an
amount aggregating to Rs. ___ or above in a financial year:-(a) Rs.10 lac (b) Rs.5 lac (c) Rs.2 lac (d) Rs.1 lac
through the Statement of Financial Transactions, about payment of bills under a credit card for an amount aggregating to Rs.____ or
above in cash or aggregating to Rs.____ or above in other mode, in a financial year:
(a) Rs.50000 lac, Rs.5 lac (b) Rs.1 lac, Rs.10 lac c Rs.2 lac, Rs.20 lac d Rs.5 lac, Rs.50 lac
through the Statement of Financial Transactions for certain transactions in deposit accounts. In case of joint accounts, for the purpose of
reporting, the amount shall be aggregated with the transactions, in the name of:
(a) first named person (b) second named person (c) all the persons (d) none of the persons
through a Statement of Financial Transactions for certain transactions in deposit account on Form No. ___ by ____ each financial year:
st th th st
(a) 60, 31 May (b) 60A, 30 April (c) 61, 30 April (d) 61A, 31 May
17 Reporting of details of bank accounts of foreigners in India, is required to be made by banks (called reporting financial institutions) to
Income Tax Department (u/s 282BA of Income Tax Act 1961 – Rule 114F) under Foreign Account Tax Compliance Act (FATCA) for persons of:
( a ) U S A (b) UK and Europe (c) USA, UK, Europe, Australia, Singapore (d) countries other than USA
Income Tax Department (u/s 282BA of Income Tax Act 1961 – Rule 114F) under Common Reporting Standards as part of Global Standards
on Automatic Exchange of Information, (AEOI) for persons of:
( a ) U S A (b) UK and Europe (c) USA, UK, Europe, Australia, Singapore (d) countries other than USA
Income Tax Department (u/s 282BA of Income Tax Act 1961 – Rule 114F) under Foreign Account Tax Compliance Act (FATCA) and Common
Reporting Standards under Global Standards on Automatic Exchange of Information on form:
( a ) 6 0 A (b ) 60B ( c ) 6 1 A (d ) 61B
MCQ on CURRENCY & CHEST
20 RBI provides incentive for opening of and maintaining currency chests at centers having population of less than 1 lakh
in under banked States as under for capital cost:
(a) Reimbursement of 50% of capital expenditure subject to a ceiling of Rs.25 lakh per currency chest.
(b) Reimbursement of 50% of capital expenditure subject to a ceiling of Rs.50 lakh per currency chest.
(c) Reimbursement of 100% of capital expenditure subject to a ceiling of Rs.25 lakh per currency chest.
(d) Reimbursement of 100% of capital expenditure subject to a ceiling of Rs.50 lakh per currency chest.
in North East Region as under for capital cost:
(a) Reimbursement of 50% of capital expenditure subject to a ceiling of Rs.25 lakh per currency chest.
(b) Reimbursement of 50% of capital expenditure subject to a ceiling of Rs.50 lakh per currency chest.
(c) Reimbursement of 100% of capital expenditure subject to a ceiling of Rs.25 lakh per currency chest.
(d) Reimbursement of 100% of capital expenditure subject to a ceiling of Rs.50 lakh per currency chest.
in under banked States as under for revenue cost:
(a) Reimbursement of 50% of revenue expenditure for the first 3 years.
(b) Reimbursement of 100% of revenue expenditure for the first 3 years.
(c) Reimbursement of 50% of revenue expenditure for the first 5 years revenue expenditure for the first 5 years.
in North East Region as under for revenue cost:
(a) Reimbursement of 50% of revenue expenditure for the first 3 years.
(b) Reimbursement of 100% of revenue expenditure for the first 3 years.
(c) Reimbursement of 50% of revenue expenditure for the first 5 years.
(d) Reimbursement of 100% of revenue expenditure for the first 5 years.
24 RBI provides incentive for for exchange of soiled notes up to denomination :
(a) Re.1 per packet for notes up to denomination Rs. 50 (b) Rs.2 per packet for notes up to denomination Rs. 50
(c) Re.1 per packet for notes up to denomination Rs.100 (d) Rs.2 per packet for notes up to denomination Rs.100
25 RBI provides incentive for adjudication of mutilated notes at:
(a) Rs.1 per piece (b) Rs.2 per piece (c) Rs.3 per piece (d) Rs.5 per piece
26 RBI provides incentive for distribution of coins over the counter at:
(a) Rs.10 per bag (b) Rs.15 per bag (c) Rs.20 per bag d Rs.25 per bag
Sovereign Gold Bonds

27 Under Sovereign Gold Bonds 2016¬ 17 – Series I, the Bonds are denominated in units of ___ gram/ s of gold and multiples
thereof. (a) one gram (b) two grams (c) 500 gram (d) no restriction
28 Under Sovereign Gold Bonds 2016¬ 17 – Series I, the minimum investment in the Bonds is ___ gram/s, per person per fiscal
year (April – March). : (a) one gram (b) two grams (c) 500 gram (d) no restriction
29 Under Sovereign Gold Bonds 2016¬ 17 – Series I, the investment in the Bonds can be with a maximum _____ per person per
fiscal year (April – March). (a) one gram (b) two grams (c) 500 gram (d) no restriction
30 Under Sovereign Gold Bonds 2016-17 – Series I, price of the Bonds has been fixed in Indian Rupees on the basis of simple
average of closing price of gold of ___ purity published by the India Bullion and Jewellers Association Limited for the week
(Monday to Friday) preceding the subscription period.- (a) 999 (b) 929 (c) 899 (d) 859
31 Under Sovereign Gold Bonds 2016¬ 17 – Series I, the Bonds shall bear interest at the rate of ___ percent (fixed rate) per
annum on the amount of initial investment. Interest shall be paid in half-yearly rests and the last interest shall be payable on
maturity along with the principal.- (a) 2.25%(b) 2.50% (c) 2.75% (d) 2.95%
32 Under Sovereign Gold Bonds 2016¬ 17 – Series I, the Bonds shall be repayable on the expiration of ____ years from August 5,
2016, the date of issue of Gold bonds.- (a) 10 years (b) 8 years (c) 6 years (d) 5 years
33 Under Sovereign Gold Bonds 2016¬ 17 – Series I, pre-mature redemption of the Bond is permitted from ___ th year of the date
of issue on the interest payment dates.- (a) 10 years (b) 8 years (c) 6 years (d) 5 years
34. As per Sovereign Gold Bond 2016¬ 17 (Series IV), what is the denomination of bonds?
(a). one gram of gold and multiple thereof (b) two grams of gold and multiple there of
(c) five grams of gold and multiple there of (d) ten grams of gold and multiple there of
35 As per Sovereign Gold Bond 2016¬ 17 (Series IV), what is the minimum and max amount of investment per financial year, in
bonds? - (a) minimum one gram and maximum 500 grams (b) minimum two grams and maximum 500 grams
(c) minimum 5 grams and maximum 500 grams (d) minimum 10 grams and maximum 500 grams
36 As per Sovereign Gold Bond 2016¬ 17 (Series IV), what is the rate of interest on the bonds?
(a) 2% p.a. fixed (b) 2% p.a. floating (c) 2.5% p.a. fixed (d) 2.75% p.a. fixed
37 As per Sovereign Gold Bond 2016¬ 17 (Series IV),what is the rate of commission payable to the receiving bank?
(a) rupee two per hundred of the total subscription received (b) rupee one per hundred of the total subscription received
(c) 50 paise per hundred of the total subscription received (d) 25 paise per hundred of the total subscription received
CURRENCY
38 Where the number of bank notes presented by a person is up to 20 pieces with a maximum value of Rs.5000 per day, the note
exchange charges levied by banks are: (a) Rs.2 per note (b) Rs.1 per note (c) bank discretion (d) free of charges
39 Where the number of bank notes presented by a person for exchange of notes exceeds ____ pieces or value exceeds the
prescribed amount, per day, banks may accept them, against receipt, for value to be credited later.
(a) 5 pieces (b) 10 pieces (c) 20 pieces (d) 25 pieces
40 Where the number of bank notes presented by a person for exchange of notes exceeds prescribed no. of pieces or value
exceeds ____ per day, banks may accept them, against receipt, for value to be credited later.
(a) Rs.5000 (b) Rs.7500 (c) Rs.15000 (d) Rs.20000
41 Where the number of bank notes presented by a person is up to ____ pieces per day, non-chest branches should normally
adjudicate the notes as per the procedure laid down in Part III of Note Refund Rules, 2009 and pay the exchange value over the
counter. - (a) 5 pieces (b) 10 pieces (c) 20 pieces (d) 25 pieces
42 Currency chest branches receiving mutilated bank notes through insured post should credit the exchange value to the account
of sender by electronic means within ___ days of receipt of notes.- (a) 10 days (b) 15 days,(c) 20 days (d) 30 days
PMGKDS
43 Amount deposited by a person in PM Garib Kalyan Deposit Scheme (PMGKDS) 2016, shall be credited to:
(a) Saving bank account of declarent (b) FD account of declarent
(c) Bonds ledger account of declarent (d) Subsidiary General account of declarent
44 The period for which, the amount is to be deposited by a person in PM Garib Kalyan Deposit Scheme (PMGKDS) 2016 is:
(a) one year (b) two years (c) three years (d) four years
45 What is the rate of interest payable
on the amount deposited by a person in PM Garib Kalyan Deposit Scheme (PMGKDS) 2016:
(a) saving bank rate (b) term deposit rate (c) no interest (d) bank discretion
46 The amount to be deposited by a person in PM Garib Kalyan Deposit Scheme (PMGKDS) 2016 is at least ____ of the
undisclosed income declared under sub-section (1) of section 199C of the Taxation and Investment Regime for Pradhan Mantri
Garib Kalyan Yojana, 2016.: - (a) 50% (b) 25% (c) 20% (d) 10%
ANSWER
1 C 2 D 3 B 4 C 5 B
6 D 7 A 8 B 9 C 10 A
11 C 12 A 13 A 14 B 15 C
16 D 17 A 18 D 19 D 20 B
21 D 22 A 23 C 24 B 25 B
26 D 27 A 28 A 29 C 30 A
31 C 32 B 33 D 34 A 35 A
36 C 37 B 38 D 39 C 40 A
41 A 42 D 43 C 44 D 45 C
46 B
MCQ on FOREX
01 The rate of interest equalisation available on Pre-Shipment Rupee Export Credit and Post-Shipment Rupee Export Credit is ___ % per
annum: ( a ) 2 % (b) 3% (c) 4% (d) 5%
02 The duration of interest equalisation scheme for Pre-Shipment Rupee Export Credit and Post-Shipment Rupee Export Credit is ____ w.e.f
01.04.2015: (a)5 years (b) 4 years (c) 3 years (d) 1 year
03 The benefit of interest equalisation scheme for Pre-Shipment Rupee Export Credit and Post-Shipment Rupee Export Credit is not
available to which of the following:
(a)SEZ exporters (b) Warehouse exports (c) merchant exporters(d) gold card holder exporters
04 Banks can submit the claims to RBI under interest equalisation scheme for Pre-Shipment Rupee Export Credit and Post-Shipment
Rupee Export Credit on ______ basis, within ____:
(a)quarterly, within 20 days (b) monthly, within 15 days (c) half-yearly, within 25 days (d) annually, within 30 days
05 A person resident outside India can establish a branch office in India provided it has a profit making track record during the
immediately preceding 5 financial years in the home country and net worth of not less than ____ or its equivalent.
(a) USD 100000 (b) USD 75000 (c) USD 50000 (d) USD 25000
06 A person resident outside India can establish a liaison office in India provided it has a profit making track record during the
immediately preceding 3 financial years in the home country and net worth of not less than ___ or its equivalent.
07 AD Category - I banks can approve Clean Credit i.e. credit given by a foreign supplier to its Indian customer / buyer, without any
Letter of Credit (Suppliers’ Credit) / Letter of Undertaking (Buyers’ Credit) / Fixed Deposits from any Indian financial institution for
import of Rough, Cut and Polished Diamonds, for a period not exceeding 180 days from the date of shipment.
(a) 90 d ay s (b) 180 day s (c ) 270 d ay s (d) 360 days
08 As per extant FDI policy for Insurance sector, the limit of foreign investment in insurance sector has been enhanced ___ under the
automatic route : (a) from 24% to 49% (b) from 26% to 49% (c) from 49% to 74% (d) from 49% to 75%
09 A no. of reports are required to be sent to RBI on XBRL. XBRLstands for:
(a) eXtensible Bank Reporting Language (b) eXtensible Business Reporting Language
(c) eXpress Business Reporting Language (d) eXpress bank Reporting Language
10 RBI may consider allowing FDI to entities having an established track record of running a Credit Information Bureau in a well
regulated environment.
(a) up to 49% if their ownership is not well diversified (i.e., one or more shareholders each hold more than 10% of voting
rights in the company)
(b) up to 26% if their ownership is not well diversified (i.e., one or more shareholders each hold more than 10% of voting
(c) up to 74% if their ownership is not well diversified (i.e., one or more shareholders each hold more than 10% of voting
(d) up to 26% if their ownership is not well diversified (i.e., one or more shareholders each hold more than 5% of voting rights in
the company)
11 RBI may consider allowing FDI to entities having an established track record of running a Credit Information Bureau in a well
regulated environment.
(a) up to 26% if their ownership is well diversified (b) up to 49% if their ownership is well diversified
(c) up to 74% if their ownership is well diversified (d) up to 100% if their ownership is well diversified
12 Who is a ‘Non-resident Indian (NRI)’ ?
(a) a person resident outside India (b) a person resident outside India who is a Person of Indian origin
(c) a person resident outside India who is a citizen of India (d) c and d both
13 A ‘Person of Indian Origin (PIO)’ is a person resident outside India who is a citizen of any country other than Bangladesh or
Pakistan or such other country as may be specified by the Central Government, satisfying the following conditions (which one is
not correct):
(a) Who was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955
(b) Who is a child or a grandchild or a great grandchild of a citizen of India
(c) Who is a spouse of foreign origin of a citizen of India (d) a and b only
14 Any person resident outside India, having a business interest in India, may open an ___ account in Indian Rupee with
Authorized Dealers for the purpose of putting through bona fide transactions in rupees:
(a) Foreign currency non-resident account (b) special non-resident rupee account
(c) non-resident ordinary account (d) non-resident external rupee account
15 The maximum period for a which special non-resident rupee account can be opened by a foreigner for business purpose
is: ( a ) o n e y e a r (b ) th ree y ears (c ) five y ears (d ) s e v en y ea r s
16 AD Category – I banks can consider granting extension of time for settlement of import dues up to
a period of at a time (maximum up to the period of three years) irrespective of the invoice value for delays on account of
disputes about quantity or quality or non-fulfilment of terms of contract; financial difficulties and cases where importer has filed
suit against the seller. (a) 1 month (b) 2 months (c) 3 months (d) 6 months
17 While considering extension beyond one year from the date of remittance, the AD Category-1 have to ensure that the total
outstanding of the importer should not exceed USD ____ or 10 per cent of the average import remittances during the preceding
two financial years, whichever is lower; - (a) USD one lac (b) USD five lac (c) USD one million (d) USD ten million
18 F- TRAC of the Clearcorp Dealing Systems (India) Ltd., stands for:
(a) Forward Market Trade Reporting and Confirmation Platform
(b) Financial Market Trade Reporting and Confirmation Platform
(c) Financial Market Trade Requirement and Confirmation Platform
(d) Financial Market Trade Reporting and Consolidation Platform
19 As per RBI guidelines, the exporters are caution-listed if any shipping bill remains open for more than ___ from date of shipment in
RBI’s EDPMS. - (a) 3 mon th s (b) 6 mon th s (c) one year (d) two years
20 What is full form of EDPMS? - (a) External data processing and monitoring system (b) Export data processing and monitoring
system, (c) Export data preparing and monitoring system (d) Export data processing and making system
21 Separate reporting has been discontinued from HY December 2015 onwards for which of the following, because the information
is available on EDPMS of RBI? -( a ) B E F (b) R-return ( c ) X O S (d) all the above
22 For transactions under Asian Clearing Union arrangement, the minimum amount which RBI receives in USD and/or Euro is
(a) USD 25000 or Euro 25000 (b) USD 10000 or Euro 10000 (c) USD 1000 or Euro 1000 (d) USD 500 or Euro 500
23 For transactions under Asian Clearing Union arrangement, the minimum amount which RBI pays in USD and/or Euro is :
(a) USD 25000 or Euro 25000 (b) USD 10000 or Euro 10000 (c) USD 1000 or Euro 1000 (d) USD 500 or Euro 500
24 Under the Liberalised Remittance Scheme of RBI, Authorised Dealers may freely allow remittances by resident individuals up to
: (a) USD 1,20,000 per Financial Year (April-March) for permittedcurrent account transaction.
(b) USD 2,50,000 per Financial Year (April-March) for permitted current account transaction only.
(c) USD 1,25,000 per Financial Year (April-March) for any permitted current or capital account transaction or a combination of
both. (d) USD 2,50,000 per Financial Year (April-March) for any permitted current or capital account transaction or a combination
of both.
25.The permissible capital account transactions by an individual under LRS are: (a) opening of foreign currency account abroad
with a bank (b) purchase of property abroad, (c) making investments abroad-acquisition and holding shares of both listed and
unlisted overseas company or debt instruments; acquisition of ESOPs; investment in units of Mutual Funds, Venture Capital
Funds, unrated debt securities, promissory notes; (d) all the above
26 Under the Liberalised Remittance Scheme of RBI, Authorised Dealers may freely allow remittances by resident individuals
within the prescribed limit for which of following current account transactions : (1) private visit or business trips (2) gift/donation
(3) going abroad on employment, emigration or for medical treatment (4) maintenance of close relatives abroad or for studies
abroad -(a) 1 to 4 all (b) 1, 2 and 4 only (c) 1, 2 and 3 only (d) 1 and 2 only
27 Under the Liberalised Remittance Scheme of RBI, Authorised Dealers may freely allow remittances by resident individuals
beyond the prescribed limit of USD 250000 for which of following current account transactions on the basis of additional
documentation : (1) medical treatment abroad (2) studies abroad (3) emigration (4) employment abroad
(a) 1 to 4 all (b) 1, 2 and 4 only (c) 1, 2 and 3 only (d) 1 and 2 only
28 Under the Liberalised Remittance Scheme of RBI, loan cannot be given for remittances by resident individuals for which of
following transaction : (a) medical treatment abroad (b) purchase of property abroad (c) donation or gift (d) none of
the above
29 Under the Liberalised Remittance Scheme of RBI, Authorised Dealers may freely allow remittances by resident individuals by
obtaining Form-A2, which is mandatory requirement if the amount of remittance is above:
(a) USD 15000 (b) USD 25000 (c) USD 30000 (d) in all cases
30 Under the Liberalised Remittance Scheme of RBI, it is mandatory to have PAN card to make remittances under the Scheme for
capital account transactions. However, PAN card need not be insisted upon for remittances made towards permissible current
account transactions up to USD ___ .- (a) USD 15000 (b) USD 25000 (c) USD 30000 (d) in all cases
31 A resident individual can lend to Non-Resident Indian or Personal of India Origin max ______ in India and amount of loan
should be credited to: (a) Up to USD 125000 by crediting the amount to NRO account of NRI / PIO
(b) Up to USD 250000 by crediting the amount to NRO account of NRI / PIO
(c) within LRS limit of USD 250000 by crediting the amount to NRO account of NRI / PIO
(d) within LRS limit of USD 250000 by crediting the amount to NRO or NRE account of NRI / PIO
32 Outward remittance under Liberalized Remittance Scheme (LRS) of RBI are permitted to (1) Individuals (2) on behalf of Minor
(3) HUF (4) Partnership (5) Company (6) Trust :- (a) 1 to 6 all (b) 1 to 3 only (c) 1 and 2 only (d) 1 only
33 Outward remittance under Liberalized Remittance Scheme (LRS) of RBI are permitted up to an amount of:
(a) USD 125000 per calendar year for permitted capital and current account transactions
(b) USD 125000 per financial year for permitted capital and current account transactions
(c) USD 250000 per financial year for permitted capital and current account transactions
(d) USD 250000 per calendar year for permitted capital and current account transactions
34 Which of the following remittance are not allowed under LRS, as capital account transactions:
(a) opening of foreign currency account abroad
(b) purchase of property or making investment in shares or debt instruments or setting up wholly owned subsidiary companies &
joint ventures, (c) extending loans including in Indian currency to non-resident Indians who are relatives (d) none of the above
35 Mr. Z wants to visit a no. of European countries and has requested for obtaining foreign currency under LRS of RBI. How much
amount will be available to him and how many times he can go outside India:
(a) USD 250000 per financial year without any restriction on no. of visits abroad
(b) USD 250000 per calendar year without any restriction on no. of visits abroad
(c) USD 250000 per financial year with maximum 3 visits abroad
(d) USD 250000 per calendar year with maximum 3 visits abroad
36 Mr. X wants to send a gift to his son residing in UK in Pound Sterling. What is the maximum amount he can remit under LRS of
RBI? -- (a) Equivalent of USD 250000 in a calendar year (b) Equivalent of USD 250000 in a financial year
(c) Pound Sterling 250000 in a financial year (d) Pound Sterling 250000 in a calendar year
37 Outward remittance can be made by a resident Indian, as part of current account transaction up to USD 250000 for (1)
donation (2) employment (3) expenses of relative (4) studies (5) immigration (6) medical treatment:
(a) 1 to 6 all (b) 1 only (c) 2 and 6 only (d) 4 to 6 only
38 Outward remittance can be made by a resident Indian, as part of current account transaction in excess of USD 250000 against
documentary evidence for (1) donation (2) employment (3) expenses of relative (4) studies (5) immigration (6) medical treatment:
(a) 1 to 6 all (b) 1 only (c) 2 and 6 only (d) 4 to 6 only
39 For which of the following transactions under LRS of RBI, banks cannot give loan:
(a) medical treatment outside India (b) purchase of property outside India
(c) making donation in favour of a Trust outside India (d) all the above
40 For availing the remittance facility under LRS of RBI, the remitter is required to make application / declarations on:
(a) Form CDF (b) Form A-1 (c) Form A-2 (d) Form EDF
41 Resident individual can lend to non-resident Indian or Person of Indian Origin close relative under LRS of RBI for a period up to:
- (a) 6 months (b) one year (c) three years (d) five years
42 Under LRS of RBI, for making remittance for capital account transactions, the Indian resident should be holding account with
the Authorized dealer for a period of atleast: - (a) three months (b) six months (c) one year (d) 2 years
43 As per RBI guidelines, the Foreign Portfolio Investors (FPIs) can transact in the Over-the-Counter (OTC) market for Government
securities with ____ settlement.-(a) T + 3 (b) T + 2 (c) T + 1 (d) T + 0
44 Total foreign investment in an Indian company is the sum total of direct and indirect foreign investments.
(a) direct investment (b) indirect investment (c) participatory notes (d) a and b both
45 As per FDI Policy, Portfolio investment up to aggregate foreign investment level of ___ or sectoral/ statutory cap, whichever is
lower, will not be subject to either Government approval or compliance with the sectoral conditions provided such investment
does not result in change in ownership leading to control of Indian entities:- (a)24% (b) 49% (c) 50% (d)74%
46 For FDI purpose, a company or a limited liability partnership shall be considered as owned by resident Indian citizens if more
than ____of the capital in it, is beneficially owned by resident Indian citizens and/or Indian companies, which are ultimately
owned and controlled by resident Indian citizens.- (a) 24% (b) 49% (c) 50% (d) 74%
47 Foreign investment up to ____ under the automatic route has been permitted in the plantation sector which includes tea
plantations, coffee plantations, rubber plantations, cardamom plantations, palm oil tree plantations and olive oil tree plantations.
-(a) 26% (b) 51% (c) 74% (d) 100%
48 Foreign investment up to ____ is allowed under the automatic route, in Non-Banking Finance Companies (NBFCs) engaged in
the select 18 activities. - (a) 26% (b) 51% (c) 74% (d) 100%
49 As per extant RBI directives, the amount of permitted trade transaction, under the Rupee Drawing Arrangements (RDAs) shall
not exceed Rs.___ per transaction. : - (a) Rs.10 lac (b) Rs.15 lac(c) Rs.25 lac (d) Rs.100 lac
50 Against the pre-shipment credit, the refinance is available from ___ maximum for ___ days:
(a) RBI, 90 days, (b) EXIM Bank, 90 days (c) Exim Bank, 180 days (d) refinance is not available
FOREX-ANSWER
1 B 2 A 3 C 4 D 5 A
6 C 7 B 8 B 9 B 10 A
11 D 12 C 13 D 14 B 15 D
16 D 17 C 18 B 19 D 20 B
21 C 22 A 23 D 24 D 25 D
26 A 27 C 28 B 29 D 30 B
31 C 32 C 33 C 34 D 35 A
36 B 37 A 38 D 39 B 40 C
41 B 42 C 43 B 44 D 45 B
46 C 47 D 48 D 49 B 50 D
MCQ on DIGITAL BANKING

MCQ on MTSS
01. Under Money Transfer Service Scheme (MTSS), what is the maximum amount of single inward foreign currency remittance?
(a).USD 10000 (b).USD 5000 (c).USD 2500 (d).USD 1000
02. Under Money Transfer Service Scheme (MTSS), the disbursement in INR cash can be made to beneficiary for an amount up
to: (a).Rs.1 lac (b).Rs.50000 (c). Rs.25000 (d).cash payments are not allowed
03. Under Money Transfer Scheme (MTSS), what is the no. of inward remittances in the name of an individual?
(a).12 within a financial year (b).12 within a calendar year (c). 30 within a financial year (d).30 within a calendar year
04. Under Money Transfer Service Scheme (MTSS), what is the minimum net owned funds of an Indian Agent appointed by a
Foreign Principal: (a).Rs.200 lac (b). Rs.100 lac (c).Rs.50 lac (d).Rs.35 lac
05. Under Money Transfer Service Scheme (MTSS), what is the minimum net worth of Foreign Principal:
(a).USD 1 lac (b).USD 5 lac (c).USD 1 million (d).USD 5 million
06. Under Money Transfer Service Scheme (MTSS), the movement of INR cash during Election times can be up to ___ with
proper documentation?-- (a).Rs.25 lac (b).Rs.20 lac (c). Rs.10 lac (d). Rs.5 lac
07. Under Money Transfer Service Scheme (MTSS), the movement of foreign currency during Election times can be up to ___or
equivalent with proper documentation? -(a).USD 1 lac (b). USD 50000 (c). USD 25000 (d).USD 10000
08 To get membership of a Centralized Payment System, the minimum capital adequacy ratio of a bank should be:
(a) 8% of risk weighted assets (b) 9% of risk weighted assets (c) 10% of risk weighted assets (d) 11% of risk weighted assets
09 To get membership of a Centralized Payment System, the net NPA of a bank should be less than:
(a) 2% (b) 3% (c) 4% (d) 5%
10 To get membership of a Centralized Payment System, the minimum net worth of a bank should be:
(a) Rs.300 cr (b) Rs.100 cr (c) Rs.50 cr (d) Rs.25 cr
11 Under Money Transfer Service Scheme (MTSS), collateral equivalent to 3 days’ average drawings or ______, whichever is
higher, may be kept by the Overseas Principal in favour of the Indian Agent with a designated bank in India.
MCQ on Pre-paid Payment Instruments (PPIs)
12 The prepaid instruments can be issued as (1) smart cards or magnetic stripe cards, (2) internet accounts or internet wallets, (3)
mobile accounts or mobile wallets (4) paper vouchers, which can be used to access the pre-paid amount:
(a) only 1 (b) 1 and 3 only (c) 1 to 3 only (d) 1 to 4 all
13 The pre-paid payment instruments that can be issued in India are classified as:
(a) Closed system payment instruments (b) Semiclosed system payment instruments
(c) Open system payment instruments (d) all the above
14 Other than banks and non-bank finance companies that want to
issue pre-paid payment instruments, should have minimum paid-up capital of Rs.___ and minimum positive networth of Rs.__:
(a) Rs.100 cr, Rs.100 cr (b) Rs.500 cr, Rs.100 cr (c) Rs.100 cr, Rs.500 cr (d) Rs.500 cr, Rs.500 cr
15 The maximum value of a pre-paid instrument, if otherwise not stated is to be restricted to:
(a) Rs.25000 (b) Rs.50000 (c) Rs.1 lac (d) at discretion of the PPI issuer
16 Up to Rs.___ PPI can be issued by accepting minimum details of the customer subject to compliance of other conditions:
(a) Rs.10000 (b) Rs.25000 (c) Rs.50000 (d) Rs.1 lac
17 Up to Rs.___ PPI can be issued by accepting official valid document (OVD) subject to compliance of other conditions:
18 Up to Rs.___ PPI can be issued with full KYC due diligence subject to compliance of other conditions:
19 PPI in the form of Gift instruments can be issued by banks and NBFCs for an amount up to Rs.__
20 The maximum validity period of PPI in the form of Gift instrument can be:
(a) 6 months (b) 12 months (c) 3 years (d) at discretion of the issuer
21 The minimum validity period of PPI other than in the form of Gift instrument can be:
(a) 6 months (b) 12 months (c) 3 years (d) at discretion of the issuer
22 PPI up to Rs.50000 can be issued by banks to (1) govt. organizations for onward issuance to beneficiaries of govt. schemes (2)
other financial institutions for credit of one-time / periodic payment by them to their customers (3) for credit of cross border
inward remittances (4) corporates for onward issuance to their employees: (a) only 1 (b) 1 and 3 only c) 1 to 3 only(d) 1 to 4 all
23 Rupee denominated PPI in the form of cards can be issued by overseas branches of banks in India directly or by co-branding
with the exchange houses/money transmitters upto a maximum amount of Rs.____ by loading from a KYC compliant bank
account. (a) Rs.50000 (b) Rs.1 lac (c) Rs.2 lac (d) Rs.5 lac
24 PPI for mass-transit system (PPI-MTS) can be issued by banks for maximum value up to Rs.___
(a) Rs.1000 (b) Rs.2000 (c) Rs.5000 (d) at discretion of issuer
ANSWER
1 C 2 B 3 D 4 C 5 C
6 C 7 A 8 B 9 D 10 D
11 C 12 D 13 D 14 B 15 B
16 A 17 C 18 D 19 C 20 C
21 A 22 D 23 C 24 B
10.Current affairs – banking, economy & finance

A. JAN. 2018 (updated up to 14.01.2018)
1. The Indian Institute of Corporate Affairs (IICA) has signed a MoU with the Payments Bank to provide training on payment
banking ___ India Post Payments Bank. Note: Under the agreement, IICA has been entrusted with the key responsibility of
capacity building of IPPB through training of its officials/employees besides providing research support by instituting Research
Chairs in the emerging area of payment banking.
2. The Reserve Bank of India (RBI) will shortly issue new banknotes in the Mahatma Gandhi (New) Series in ____ Rs 10
denomination. Note: The new denomination has motif of Sun Temple, Konark on the reverse and the base colour of the note,
Chocolate Brown. The dimension of the banknote will be 63 mm x 123 mm.
3. The RBI clearance to register and function as a non-banking finance company (NBFC) __ Telangana Industrial Health Clinic
Ltd (TIHCL). Note: TIHCL will be the first state promoted and co-financing NBFC. It had won the SKOCH Platinum Award in
Sep 2017 under the smart governance category in the MSME segment.
4. The union Govt has launched a Yojana to provide social security during old age, to protect elderly persons aged 60 and above
against a future fall in their interest income due to uncertain market conditions ____Pradhan Mantri Vaya Vandana Yojana
(PMVVY). Note: The scheme enables old age income security for senior citizens through provision of assured pension/return
linked to the subscription amount based on government guarantee to Life Insurance Corporation of India (LIC). The scheme
provides an assured return of 8% per annum for 10 years. The scheme is open for subscription till 3rd May 2018.
5. The Pension Fund Regulatory and Development Authority of India (PFRDA) run Atal Pension Yojana (APY) has reached a
subscriber base of ____80 lakh.Note: Uttar Pradesh is the highest contributing state at 11.41 lakh APY subscribers, followed by
Bihar and Tamil Nadu. APY became operational from 1st June,2015 and is available to all citizens of India in the age group of 18-
40 years. Under the scheme, a subscriber will receive a minimum guaranteed pension of 1000 to 5000 rupees per month, depending
on his contribution, from the age of 60 years.
6. The Income Tax (IT) Department has launched an on-line chat service on its national website ___
www.incometaxindia.gov.in’.Note: A customer support executive having expertise in tax-related matters helps the users in
resolving their queries online. The facility is available on all working days from Monday to Friday between 10 AM and 6 PM.
7. The first Advance Estimates of National Income 2017-18, the Growth in GDP during 2017-18 has been estimated at ___6. 5%,
Note: Agriculture, forestry, and fishing is likely to slow to 2.1% in the current fiscal from 4.9% in the preceding year.
The growth rate in per capita income is estimated at 5.3% during 2017-18, as against 5.7% in the previous year.
The growth in manufacturing sector is expected to decelerate to 4.6% this fiscal, (7.9 % in 2016-17).
8. The Customers will not have to pay any transaction charges for payments through debit card, BHIM app and other payment
made for up to ____ Rs 2,000. Note: The merchant discount rate (MDR) will be borne by the government for two years with effect
from 1st January,2018 by reimbursing the same to banks.
9. The State Bank of India (SBI) has reduced the base rate and benchmark prime lending rates by ____30 basis points each. Note:
State Bank of India revised down the base rate to 8.65% for existing customers from 8.95%. The benchmark prime lending rates is
down from 13.7% to 13.4%. The bank also extended its ongoing waiver on home loan processing fees till the end of this March for
new home loan customers and other customers looking to switch their existing loans to SBI.
10. The union govt has finalized the scheme aimed at cleaning the system of political funding in the country___ Electoral Bonds.
Note: The bonds will be issued and purchased from the specified branches of the State Bank of India for ten days in January, April,
July and October. They will be available in the multiples of one thousand, ten thousand, one lakh, ten lakhs, and one crore rupees.
They will have a life of only 15 days during which it can be used for making donation only to the registered political parties.
11.S&P classifies Indian banks under ‘Group 5’ - : On the basis of their economy and industry risk criteria, The Indian
banking sector has been put in 'Group 5' by American rating agency Standard & Poor's (S&P).In its BICRA (Banking Industry
Country Risk Assessment), Standard & Poor’s (S&P) provided the outlook for the banks of the countries worldwide.Along with
India, countries Italy, Spain, Ireland, Panama, Bermuda, Poland, Peru, Qatar, South Africa and the UAE are also classified under
Group 5.S&P said that Banks' asset quality is weak and has been deteriorating in the past four years however in terms of industry
risk, the banking system's good franchise, extensive branch networks, and large domestic savings support a granular and stable
deposit base .S&P has its headquarter in New York, United States of America.
12.India’s GDP growth at 6.5% in FY18, 7.0 % in FY19 and 7.6% in FY20: HSBC :In a report by HSBC, India's growth rate
is expected to accelerate to 6.5 % in this fiscal year 2017-18. For 2018-19, India's economy is expected to grow at 7.0 % and it will
grow upto 7.6% for the Financial year 2019-20. The reason behind the improvement in growth rate is the key sectors which would
revive from disruptions related to the implementation of GST and demonetisation. HSBC said that recovery in India's GDP growth
will likely be relatively gradual which will prevent price pressures from rebounding and allowing the Reserve Bank of India to keep
rates on hold for the time being. HSBC expects that inflation in India will settle around RBI’s 4 % target, once the Indian economy
is fully in line with the two major event Demonetization and Goods and Services Tax (GST). HSBC is headquartered in London,
United Kingdom.
13.KKR becomes the first company to get approval for India’s 1st Foreign-owned ARC : A big Investment firm and buyout of
United States KKR & Co has received approval from the Reserve Bank of India to own an asset reconstruction company (ARC) in
India. In this way, KKR & Co has become the first foreign investor to fully own an ARC in India. KKR & Co to own an ARC in
India. at a time when lenders are fighting with a pile of bad loans that have crippled their businesses. KKR is one of the biggest
investors in financial services and it is planning to deploy a major chunk from its record Asia fund for buying troubled assets in
India. To tackle the increasing issue of Non-Performing Asset in India, Central Government allowed foreign institutions to have
100% ownership in asset reconstruction companies in India in March 2016.' An Asset Reconstruction Company is a specialized
financial institution that buys the NPAs or bad loans from banks and financial institutions to clean up the balance sheets of
Banks. This helps banks to concentrate in normal banking activities. Banks rather than going after the defaulters by wasting their
time and effort can sell the bad assets to the ARCs at a mutually agreed value KKR & Co is headquartered in Newyork, USA.
14.Finance Ministry is all set to relaunch Government of India bonds with 7.75% rate - Government is all set to relaunch
the new subscription of GoI Savings (Taxable) Bonds, 2003 which will now bear 7.75 % Interest rate as compared to 8% interest
rate earlier. It is announced by Subhash Chandra who is Secretary of Department of Economic Affairs under Ministry of Finance.
At 7.75 % interest, Government of India (GoI’s) Savings Bonds Scheme has the highest returns when compared to other fixed-
income products.It is also known as RBI Bonds Scheme. It has a fixed tenure of six years and there is no upper limit for
investment.Recently the Government of India has revised the interest rates on Post Office Savings Schemes and now relaunching of
the Government of India bonds with the lower interest rate is in tandem.For retail investors and retirees, the bonds will continue to
be lucrative even though the interest rate will be 25 basis points lower. Those in the 30 % tax bracket would still make 5.42 %
returns by investing in the new bonds that the government would issue.The investor who is in 20 % and 10 % tax bracket, he will
make 6.2 % and almost 7 % post-tax returns respectively.
For those who are not in the highest tax bracket, the returns are slightly better than what they can get in a debt fund, which carries
either duration or interest rate risk. These bonds have the highest safety level as they are backed by the sovereign guarantee. The
average one-year return from shorter duration debt funds is in the range of 6.4-6.6.
15. No charges on debit card, BHIM app and other payment transactions up to Rs 2000:Finance Ministry
Now the customers will not have to pay any transaction charges for payments through debit card, BHIM app and other payment
made for up to Rs 2,000 from 1st January 2018. It is stated by Rajiv Kumar, Secretary of Financial Services under Union Finance
Ministry. To promote the digital transactions, the government will now bear the merchant discount rate (MDR) charges on
transactions up to Rs 2,000 made through debit cards, BHIM UPI or Aadhaar-enabled payment systems. This proposal was
approved by Central Government in December, 2017. This MDR will be reimbursed to the banks. The total cost of bearing the
MDR the Government for two years will be Rs 2512 crore. Merchant Discount Rate is the rate charged to a merchant by a bank for
providing debit and credit card services. The rate is determined based on factors such as volume, average ticket price, risk and
industry.
16 Pluto Exchange announced launch of India’s first bitcoin trading app -
Dubai based cryptocurrency dealer Pluto Exchange is all set to launch India’s first mobile application for transacting in virtual
currencies. It will be India's first app-based wallet which will enable bitcoin transactions using a mobile number.
The Pluto Exchange mobile app offers a solution to the coordination problem between payment processors, financial gateways and
banks. By using a four-digit personal identification number (PIN), users can now buy, sell, store and spend bitcoins via a mobile
number.The app would permit a range of transactions, including payments, remittances, business-to-business commerce, supply
chain finance, asset management and trading. Bharat Verma is the founder and Chief Executive of Pluto Exchange
17. Bank of Baroda signed MoU with POORTI to help farmers purchase agricultural inputs -
India's public sector bank Bank of Baroda has entered into MOU with POORTI Agri Services Pvt. Ltd to create an ecosystem
which will provide end to end solution to farmers. Now the Bank of Baroda and Poorti will jointly work which will enable the
farmers to purchase agricultural inputs such as fertilizers, pesticides, seeds etc. provided by POORTI. POORTI (Platform for
Online Ordering & Rural Transformation of India) is a well-established company which provides multi-party mobile commerce
platform for easy ordering of fertilizers, pesticides, seeds by farmers with loans given by banks. P.S.Jayakumar is the Managing
Director and CEO of Bank of Baroda. It has its headquarter in Vadodara, Gujarat. Mr. N. Balasubramanian is the founder and
director of Poorti Agri Services Pvt. Limited.
18. RBI puts Allahabad Bank under prompt corrective action framework - Reserve Bank has put Allahabad Bank, the public
sector bank of India under prompt corrective action framework The decision has been taken by RBI after an on-site inspection of
high NPAs and a negative return of assets by the Allahabad Bank for fiscal 2016-17. The RBI inspection has revealed high net
NPAs (non performing assets) and negative ROA (return on assets) by Allahabad Bank for two consecutive years. This action by
Reserve Bank of India will lead to the overall improvement in risk management, asset quality, profitability, the efficiency of the
Allahabad Bank. The RBI has initiated prompt corrective action against other public sector banks which are IDBI Bank, Indian
Overseas Bank and UCO Bank. In April 2017, Reserve Bank of India had issued a new set of enabling provisions under the revised
PCA framework. It said that if the bank does not show improvement then it could be either be merged or taken over by another
bank. Usha Ananthasubramanian is the MD and CEO of Allahabad Bank. It has its headquarter in Kolkata, West Bengal.
19.Indiabulls Housing Finance issues India’s 1st Social Affordable Housing Bond -
Indiabulls Housing Finance Limited (IBHFL) has issued India’s first Social Affordable Housing Bond of INR 1,000 crores, to
finance the Affordable Housing sector. India’s 5 th largest private sector Bank Yes Bank was the only investor in this landmark
issue. The Bond issue is for a tenor of 5 years and is rated ‘CRISIL AAA’ by CRISIL and ‘ICRA AAA’ by ICRA. The Bond will
be listed on the National Stock Exchange Limited (NSE) and Bombay Stock Exchange Limited (BSE). Social Bonds are debt
instruments which are issued to raise funds. These are to be deployed in financing/re-financing eligible social projects such as
affordable housing, water supply, sanitation, transport etc. Indiabulls Housing Finance has also received an approval to issue USD
750 Mn of Masala Bonds from Reserve Bank of India for which the end use is planned to be affordable housing. Affordable
Housing will play a critical role in realising Government’s vision of ‘Housing for All’. Rana Kapoor is the MD and CEO of Yes
Bank. It has its headquarter in Mumbai, Maharastra. Indiabulls Housing Finance has its headquarter in New Delhi.Sameer Gehlaut
is the founder and executive chairman of the bank.
20. The Pension Fund Regulatory and Development Authority of India (PFRDA) run Atal Pension Yojana (APY) has reached a
subscriber base of _____80 lakh. Note: Uttar Pradesh is the highest contributing state at 11.41 lakh APY subscribers, followed by
Bihar and Tamil Nadu. APY became operational from 1st June,2015 and is available to all citizens of India in the age group of 18-
40 years. Under the scheme, a subscriber will receive a minimum guaranteed pension of 1000 to 5000 rupees per month,
depending on his contribution, from the age of 60 years.
21. Who got RBI clearance to register and function as a non-banking finance company (NBFC) _____ Telangana Industrial Health
Clinic Ltd (TIHCL). Note: TIHCL will be the first state promoted and co-financing NBFC. Telangana launches India’s 1st co-
financing NBFC for MSMEs
22.. Who will issue new banknotes in Rs10 denomination in the Mahatma Gandhi (New) Series___ The Reserve Bank of India.
Note: The new denomination has motif of Sun Temple, Konark on the reverse and the base colour of the note, Chocolate Brown.
The dimension of the banknote will be 63 mm x 123 mm. All the banknotes in the denomination of Rs 10/- issued by the Reserve
Bank in the earlier series will continue to be legal tender.
23. According to the Chief Statistician T C A Anant on the first Advance Estimates of National Income 2017-18, the Growth in GDP
during 2017-18 has been estimated at _____ 6. 5%. Note: Agriculture, forestry, and fishing is likely to slow to 2.1% in the current
fiscal from 4.9% in the preceding year. GER is a statistical measure for determining the number of students enrolled in
undergraduate, postgraduate and research level studies within the country and is expressed as a percentage of the population.
24. World Bank projects India's growth rate in 2018 ___ 7.3% Note: India has enormous growth potential compared to other
emerging economies as an ambitious government undertakes comprehensive reforms. Due to demonetization and Goods and
Services Tax (GST), India's economy is estimated to have grown at 6.7% in 2017.
25. Who has launched the new interest rate futures (IRF) contracts offering 7.17% yield on government bonds ___ BSE and NSE.
Note: An IRF is a contract between a buyer and a seller agreeing to the future delivery of any interest-bearing asset such as
government bonds. Banks, primary dealers, mutual funds, insurers, FIIs, corporates and brokers, as well as retail investors trade in
this product.
26. Who banned Price Waterhouse entities from issuing audit certificates for 2 yrs ____ SEBI. Note: The Securities and Exchange
Board of India (SEBI) has barred auditor major Price Waterhouse's network entities from issuing audit certificates to any listed
company in India for two years. SEBI also ordered disgorgement of over 13 crore rupees wrongful gains from the audit major and
it's two erstwhile partners who worked on the IT major's accounts.
27. Who will provide rankings to the 115 aspirational districts ___ Niti Aayog. Note: The ranking will be on 10 parameters which
will include nutrition, education and health among others. It will also set up a mechanism for real-time monitoring of
government's development programmes by April 2018. ‘Niti Aayog’ will create a dashboard which will reflect the change in
ranking of districts on continuous basis by the end of March this year.
28. Retail inflation crossed the RBI's comfort level and rose in December___5.21%. Note: As per the data released by the Central
Statistics Office, CSO, inflation for the food basket increased to 4.96 percent in December from 4.42 percent in the preceding
month.
29. The bank has signed a MoU with National Scheduled Castes Finance and Development Corporation to provide financial
assistance to Scheduled Castes families living below Double Poverty Line___ Punjab National Bank. Note: PNB will be
channelizing agency for loan scheme of NSFDC.
30.LAST DATE FOR LINKING AADHAAR WITH PAN EXTENDED: Central Board of Direct Taxes has extended the date for linking
st
Aadhaar with PAN till 31 of March 2018.
31.India’s Sovereign Bond Rating as per Moody’s : Baa2
32.India’s Sovereign Rating by Fitch and Standard & Poor: BBB
33.Project DARPAN has been launched for financial inclusion of rural population of India. Expand the term ‘DARPAN’: Digital
Advancement of Rural Post Office for A New India”
34.The Small Finance Bank that received RBI’s approval recently to operate as Scheduled Commercial Bank: AU Small Finance
Bank
35.The new word limit for tweets on Twitter: 280 Characters
36.The insurer which has won the ‘General Insurance Company of the Year’ Award: Apollo Munich
37.Bharat-22 exchange traded fund is managed by: ICICI Prudential MF
th
38.The theme of 37 India International Trade Fair(IITF): Startup India: Standup India.
39.The Unified App launched by the government for PF, NPS, gas booking and other services: UMANG
40.The person appointed as Executive Director of SEBI: Anand Rajeshwar Baiwar
41.Bank with which Amazon ties up to offer Micro-Loans to Sellers: Bank of Baroda.
B.NEWS SUMMARY (JAN. 207 TO DEC. 2017)

1. Bad loans of Public sector banks (PSBs) stood at Rs 7.34 lakh crore by the end of second quarter this fiscal. The network of
Debt Recovery Tribunals expanded to 39 at present, as compared to 33 in 2016-17.
The gross NPA of public sector & private sector banks as on Sept. 30, 2017, were Rs 7,33,974 crores & Rs 1,02,808 crore,
respectively.Among the major govt.-owned banks, SBI had the highest level of NPAs at over Rs 1.86 lakh crore, followed by PNB (Rs
57,630 crore) & Bank of India (Rs 49,307 crore). Among private banks, ICICI Bank had the most amount of NPAs at Rs 44,237
crore, followed by Axis Bank (Rs 22,136 crore) & HDFC Bank (Rs 7,644 crore).
3. 11th WTO Ministerial Conference Held in Argentina
11th World Trade Organization (WTO) Ministerial Conference (MC11) held in Buenos Aires, Argentina. It was chaired by Minister Susana
Malcorra of Argentina. Indian Delegation was led by Minister of Commerce & Industry Suresh Prabhu. Three proponent groups
announced new initiatives to advance talks at the WTO on the issues of electronic commerce, investment facilitation, & micro,
small & medium-sized enterprises (MSMEs). European Union contributed EUR 1 million (over CHF 1.2 million) to improve the
trading capacity of developing countries & to help them play a more active role in trade negotiations.
United Kingdom govt. announced at the WTO‘s Ministerial Conference with a commitment of £16 million (around US$ 21.3
million) to 51 of the world‘s poorest countries.
4. Features of New House Building Advance (HBA) rules Incorporating the accepted recommendations of 7th Pay Commission, Govt.
raised the maximum amount that a central Govt. employee can borrow from the Govt. to Rs 25 lakh for new construction/purchase of
new house/flat. The govt. also increased the amount that a central govt. employee can borrow for expansion of their homes to 34 months
of basic pay to a maximum of Rs 10 lakh, from Rs 1.80 lakh earlier.
5.Govt. launched a portal, to provide a platform to sell agricultural produce called e-RaKAM. It is a joint initiative by state-run-
auctioneer MSTC & Central Warehousing Corporation arm CRWC. e-Rashtriya Kisan Agri Mandi (e-RaKAM) portal is
launched to provide a platform for farmers to sell agricultural produce. E-RaKAM is a digital initiative aims to bring together the
farmers, PSUs, civil supplies & buyers on single platform to ease selling & buying process of agricultural products.
6. GOI decided to launch a new sub-scheme named "Aajeevika Grameen Express Yojana (AGEY)" as part of the Deendayal
Antyodaya Yojana – National Rural Livelihoods Mission (DAY-NRLM). Self-Help Groups under DAY-NRLM will operate
road transport service in backward areas. This will help to provide safe, affordable & community monitored rural transport
services to connect remote villages with key services & amenities. Community Investment Fund (CIF) provided to Community
Based Organization (CBOs) under DAYNRLM will be utilized to support the SHG members in this new livelihood initiative. The
beneficiary SHG member will be provided an interest free loan by the CBO from its Community Investment Fund upto Rs.6.50
lakh for purchase of the vehicle.
7. Nabard established in 1982 & provides loans for agriculture, small scale industries among others. The bill will enable the exit of
RBI from Nabard & increased the authorised capital of the development institution to Rs. 30,000 crores. The Bill provides that the
central Govt. alone must hold at least 51% of the share capital of NABARD. The Bill transfers the share capital held by the RBI &
valued at Rs. 20 crore to the central Govt..The Bill replaces the terms 'small-scale industry‘ & 'industry in the tiny & decentralised sector‘
with the terms 'micro enterprise‘, 'small enterprise‘ & 'medium enterprise‘ as defined in MSME Development Act, 2006.
8. NEW NOTES – 50 & 200
A.What the features of Rs.50 Note? The new denomination has a motif of Hampi with Chariot on the reverse, depicting the country‘s
cultural heritage. The base colour of the note is Fluorescent Blue. The dimension of the banknote will be 66 mm x 135 mm. Ashoka
Pillar emblem on the right, Swachh Bharat logo with slogan, The Panel of 15 Languages.
B.What are the features of Rs.200 Note - The new denomination has Motif of Sanchi Stupa on the reverse, Depicting the country‘s
cultural heritage. The base colour of the note is Bright Yellow. The base colour of the note is Bright Yellow. The dimension of the banknote
will be 66 mm × 146 mm. Ashoka Pillar emblem on the right. Raised Identification mark H with micro-text Rs 200 Swachh Bharat
logo with slogan, Panel of 15 Languages
NEWS RELATED TO RBI
 RBI put Kolkata-based United Bank of India under the prompt corrective action (PCA) framework.
 RBI placed Bank of India under Prompt Corrective Action Framework.
 RBI imposed a penalty of Rs 5 crore on Syndicate Bank for non-compliance with its directions on "Cheque Purchase or Discounting, Bill
Discounting, & KYC norms. As per the IT Ministry, govt. will bear the Merchant Discount Rate (MDR) charges on transactions up to Rs
2,000 made through debit cards, BHIM UPI or Aadhaarenabled payment systems to promote digital transactions. RBI increased the
limits for investment by foreign portfolio investors (FPIs) for Jan-Mar 2018 quarter by Rs 6,400 crore in Central Govt. Securities (G-
Secs) & Rs 5,800 crore in State development loans (SDLs) {Rs. 2,56,400 crores in G-Secs}
 RBI imposed Rs 3 crore penalty on IndusInd Bank for breaching rules on income classification norms.
 RBI triggered PCA against Corporation Bank, in view of high non-performing loans & requirement to raise capital. OBOPAY
announced that the company secured a license for Prepaid Payment Instrument (PPI) from RBI to operate a semi-closed loop wallet in
the country.
 Monetary Policy Committee (MPC) decided to keep policy repo rate under the liquidity adjustment facility (LAF) unchanged at 6%. RRR
under the LAF remains at 5.75%, & MSF rate & Bank Rate at 6.25%. The projection of real GVA growth for 2017-18 of 6.7% has been retained. RBI
allowed Asset Reconstruction Companies (ARCs) to hold more than 26% post conversion of debt into equity in companies undergoing restructuring
1 rupee note turns 100 on 30th Nov 2017. The first 1 rupee note was printed in India with King George V. NBFCs cannot outsource core
management functions like internal audit, strategic & compliance functions for KYC norms, sanction of loans & management of investment
portfolio.
 RBI reportedly rejected HDFC Bank's plea to declassify its parent HDFC as foreign institutional investor (FII).
 RBI Governor Urjit Patel appointed to the Financial Stability Institute Advisory Board of Bank of International Settlement
(BIS). BIS is a global financial organization owned by major central banks from across the world. As per RBI, all the corporate
borrowers having exposure of Rs. 5 crores & above mandatorily to obtain 20-digit Legal Entity Identifier (LEI). Banks also
required to acquire LEI number from borrowers & submit it to Central Repository of Information on Large Credits (CRILC).
 RBI constituted a 10-member -High Level Task Force on Public Credit Registry (PCR) for India. It will be Headed by YM
Deosthalee.
 Indian govt. announced an allocation of Rs 2.11 lakh crore over 2 years for the recapitalization of public sector banks. As
part of the plan, the Govt. will essentially issue bonds to banks worth Rs 1.35 lakh crore while Rs 76,000 crore will come through
budgetary support.
 After making Legal Entity Identifier (LEI) mandatory for transactions in interest rate, forex & credit derivative market, RBI is set to
make LEI compulsory for companies having aggregate fund-based & non-fund based exposure over Rs 5 crore. Banks will be
required to capture this number in the Central Repository of Information on Large Credits (CRILC) database that captures details of
loan above Rs 5 crore.
 RBI issued guidelines to banks to provide funds to women self help groups, SHGs, in rural areas at 7% under the Deendayal Antyodaya
Yojana - National Rural Livelihoods Mission (DAY-NRLM) in the current fiscal (2017-18).
 RBI clarified that linking of Aadhaar to the bank account is mandatory under the Prevention of Money-Laundering (Maintenance of
Records) Second Amendment Rules, 2017 published in the Official Gazette on 01st June 2017.
 Govt. made it mandatory for banks & financial institutions to check the original identification documents of individuals dealing in
cash above Rs. 50,000, to weed out the use of forged or fake copies.
 RBI opened a branch in the Dehradun city to make transactions of the UK State govt. more convenient.
 As per the direction by RBI, banks need to provide banking services to senior citizens of more than 70 years of age &
differently-abled persons at doorstep.
 I As per SBI, its board has approved raising Rs 8,000 crore through various sources, including masala bonds, to meet Basel III capital
norms.
 SBI introduced a loyalty program for its valued customers named as State Bank Rewardz, which gives the customers several opportunities
to earn reward points & earn many times faster at Max Get More partner outlets.
 SBI launched a unified integrated app called YONO (You Need Only One) that would offer all kinds of financial & lifestyle products.
 SBI announced sanction of credit facilities amounting to Rs. 2,317 crores to corporates for financing Grid Connected
Rooftop Solar projects under an SBI-World Bank program.
 SBI signed an agreement with Escorts Ltd. to finance farmers for purchase of Escorts tractors.
 SBI launched the second edition of its Hackathon named 'Digitize For Bank.'
 SBI is creating a 15,000-sqft innovation center in Navi Mumbai investing around Rs 100 crore. The center, to be built at its Global
IT Centre in Belapur in Navi Mumbai.
 SBI launched a new product to provide a short-term working capital demand loan to its MSME clients. It is called SME Assist,
would offer loans to MSME customers on the basis of their input credit claims GST.
 Govt. named Rajnish Kumar as the new chairman of SBI, for 3-year term. Kumar will succeed Arundhati Bhattacharya.
ALL OTHER BANKS IN NEWS
 Bank of Baroda entered into MoU with POORTI Agri Services Pvt. Ltd to enable the farmers to purchase
 agricultural inputs such as fertilizers, pesticides, seeds etc. provided by POORTI.
 IDBI Bank received the capital infusion of Rs 2,729 crore from the govt. of India.
 Bank of India received capital infusion of Rs. 2,257 crores from the govt.
 Allahabad Bank entered into an agreement with state-run National e-Governance Services Limited (NeSL) for utilizing the NeSL‘s
Information Utility Services envisaged under Insolvency & Bankruptcy Code, 2016. Andhra Bank launched a new scheme for self-help
groups (SHGs) to encourage entrepreneurship. The scheme, Pattabhi Sitaramayya — Self Business Group (PS-SBG), introduced to
commemorate the 138th birth anniversary of its founder Bhogaraju Pattabhi Sitaramayya, & the Silver Jubilee of the SHG-Bank linkage
programme in the country. Under this, SHGs having five years of association with Andhra Bank & having successfully completed three
credit rotations with good repayment record & an aptitude for entrepreneurship, will be eligible for a loan.
 Bank of Baroda launched digital Supply Chain Finance solution which aims to accelerate working capital loan opportunities for
the small & medium enterprises & large corporate clients.
 Debt-laden Air India received a loan worth of Rs. 1,500 crore from BOI to meet urgent working capital needs. Union Bank of India
launched an Android app, Union Sahyog, as part of its drive to digitise customer-facing banking services.
 AU Small Finance Bank announced signing an MoU with Sahaj e-Village for extending its banking service in remote areas through
Business Correspondent Agent (BC) model.
 Paytm Payments Bank rolled out Paytm FASTag to enable electronic toll fee collection on highways across the country.
 Paytm Payments Bank is the only bank providing zero balance accounts & zero charges on digital transactions. It unveiled
'Paytm Ka ATM' outlets that allows customers to open Saving A/c & deposit/withdraw money from their A/c.
 'Paytm Payments Bank' formally launched at the hands of FM Jaitley. Currently, India has four Payments Bank which are
Paytm Payments Bank, Airtel Payments Bank, India Post Payments Bank & Fino Payments Bank.
 AU Small Finance Bank received RBI approval to operate as Scheduled Commercial Bank. This bank's name included in the
Second Schedule of RBI Act, 1934.
 AU Small Finance Bank tied up with SIDBI to launch a Rs. 200 crores fund for providing loans to micro, small & medium
enterprises (MSMEs). The program will fund term loans in the Rs. 25 lakh to Rs. 2 crore ticket size.
 Fincare Small Finance Bank (previously known as Disha Microfin Limited) kick-started its banking operations with about 25
operational branches across Gujarat, Tamil Nadu, Karnataka & Andhra Pradesh.
 Sunil Mittal-driven Airtel Payments Bank integrated the Unified Payments Interface (UPI) on its digital platform, allowing customer
choice & convenience to facilitate secure digital payments.
 Fino Payments Bank launched its mobile banking app called BPay. Fino aims to make banking easy for millions of
underbanked people in India.
 IGovt. engaged ICICI Bank to enable online payments at 470 mandis integrated with the national portal of electronic National
Agriculture Market (e-NAM).
 Paytm & ICICI Bank collaborated to announce an all-new initiative where users can get interest-free short-term digital credit.
Called Paytm-ICICI Bank Postpaid.
 ICICI Bank launched India's first voice-based international remittance service to enable non-resident Indians (NRIs) to send money to
any bank in India.
 ICICI Bank announced a new home loan scheme that offers borrowers the benefit of 1% cashback on every EMI, for the
entire tenure.
 Competition Commission of India (CCI) approved scheme of amalgamation between IndusInd Bank & Bharat Financial
Inclusion.
 YES Bank & European Investment Bank will co-finance $400-million funding for renewable power generation in the country.
 Agri service solutions provider Sohan Lal Commodity Management (SLCM) having operations across India & Myanmar tied up
with HDFC Bank & IndusInd Bank to provide collateral management services.
 Axis Bank launched an instant international payment services using Ripple‘s enterprise blockchain technology solution for retail &
corporate customers.
 HDFC Bank launched its SmartUp Zone in Kochi, an exclusive area inside the branch dedicated for start-ups. IDFC Bank
entered into a ―strategic alliance" with MobiKwik to launch a co-branded virtual Visa prepaid card for customers of MobiKwik.
 Federal Bank obtained RBI approval to open representative offices at Kuwait & Singapore.
 Yes Bank signed an MoU with Innovation Centre Denmark India (ICDK India) to bring fintech innovations & startups from
Denmark to India, & facilitate entry of Indian startups to the region.
 Yes Banksigned an agreement with govt.to provide Rs1,000 crorefinancing forfood processing projects. The funding will beprovided to around 100
food processing projects with an average ticket sizeof Rs 10 croreeach.
 RBL Bank set up an all women branch in Chennai, Tamil Nadu.
 ―Smart Banking 24X7" e-lobbies launched by Kotak Mahindra Bank in Mumbai.
 HDFC Bank topped the list of the country‘s top 50 brands as per report released by WPP Plc & Kantar Millward Brown. Airtel
is at 2nd spot & SBI at 3rd.
 RBI included HDFC Bank in the list of 'too big to fail' lenders, referred to as D-SIB or domestic systemically important bank.
 iCorporation Bank launched its RuPay Select & RuPay Platinum credit cards. Jai Kumar Garg, MD & CEO unveiled it.
 Sub-Committee of Financial Stability & Development Council (FSDC) headed by RBI Governor Urjit Patel discussed the setting up
of the National Centre for Financial Education (NCFE), operationalisation of information utilities registered by the IBBI, sharing of
data among regulators & the implementation status of Legal Entity Identifier (LEI).
 Indian online payments firm BillDesk-owned Hatio Innovations launched cryptocurrency exchange ‗Coinome‘ in India.
 Pradhan Mantri Jan Dhan Yojana (PMJDY) gathered momentum in some northern States post demonetisation. With its area & size of
population, Uttar Pradesh tops in opening new PMJDY accounts. International Business Machines Corporation (IBM) announced the
launch of IBM Blockchain, a new blockchain banking solution, that will help financial institutions for cross-border payments.
 Insolvency & Bankruptcy Board of India registered National E-Governance Services Limited (NeSL) as an Information Utility
(IU) under the IBBI (Information Utilities) Regulations, 2017. With this, NeSL has become the first IU registered by the IBBI & the
registration is valid for five years from the date of registration.
 IRDAI issued regulations for insurance firms to carry out offshore business from GIFT International Financial Services Centre
(IFSC). Under this, for the 1st time in the country, foreign insurers are permitted to open IFSC Insurance Office (IIO) at GIFT IFSC.
 Life insurer PNB MetLife signed a corporate agency agreement with Bank of Bahrain & Kuwait B.S.C (BBK). Reliance General
Insurance, a subsidiary of Reliance Capital signed comprehensive bancassurance-corporate agency agreement with YES Bank.
 Apollo Munich Health Insurance Company, a joint venture between Apollo Hospitals Group, & Munich Re Group conferred with
the 21st Asia Insurance Industry Awards in the "General Insurance Company of the Year" category.
 General Insurance Corp of India (GIC Re) kicked off its mega Rs 11,370 crore initial public offer (IPO). This is India's third biggest IPO ever
after Coal India's Rs 15,200 crore & Reliance Power's Rs 11,700 crore issues.
 HDFC Life Insurance Company launched 'Neo', a servicing bot for Twitter that uses artificial intelligence for customer service.
This is the second bot after the launch of SPOK.
 HDFC Life Insurance & Apollo Munich Health come together to launch 'Click2Protect Health plan‘, which provides both life & health
cover under a single plan. India‘s first ever insurance cover for individual victims of cyber crime was launched by Bajaj Allianz. Under this,
insurance will be provided against online fraud, identity theft, cyber-stalking & extortion, phishing & malware attack. Sum insured for the policy is
in range of Rs. 1 lakh to Rs. 1 crore.
 Tata AIA Life announced the launch of 'Eazy Connect‘, that will extend online customer service to social media platforms.
 The first private Life Insurer to Implement e-NACH (Electronic – National Automated Clearing House) service of NPCI is ICICI
Prudential Life.
 India‘s first-ever micro-insurance plan 'insurance khata‘ was introduced by IndiaFirst Life. It is introduced for individuals of the
informal sector & agricultural labourers with seasonal incomes.
 Pension Fund Regulatory & Development Authority (PFRDA) announced that the upper age limit for joining the National Pension Scheme
(NPS) had been raised to 65 years, from the current 60.
 NEWS RELATED TO INTERNATIONAL BANKS
 US buyout giant KKR & Co become the first foreign investor to fully own an asset reconstruction company (ARC) in India as it received
approval from RBI.
 Venezuelan President Nicolas Maduro announced the creation of a new virtual currency named 'Petro' to ease the country's economic
crisis.
 Bank of China formally launched its operations in Pakistan, with its first branch inaugurated in Karachi. American digital payments
company PayPal launched domestic operations in India.
 HSBC launched mobile app - Trade Transaction Tracker - to help customers track the status of their trade transactions on a
real-time basis.
 HSBC has appointed John Flint as its next chief executive. He replaced Stuart Gulliver.
 US-based fintech company Mastercard announced the launch of its global research & development arm Mastercard Labs in Pune,
India. After Singapore, this will be the second Mastercard Labs in Asia-Pacific, & ninth in the world.
 1st Canadian bank to be added to Financial Stability Board‘s (FSB) list of global systemically important banks (G-SIB) deemed ‗too big to
fail‘ is Royal Bank of Canada (RBC). Note: Financial Stability Board (FSB) is in Basel, Switzerland.
ECONOMIC & FINANCIAL NEWS
 India‘s first home-grown high purity gold reference standard - Bharatiya Nirdeshak Dravya (BND-4201) - launched. BND-4201, is
the reference material for gold of '9999‘ fineness (gold that is 99.99% pure), will be beneficial to the consumers & public at large to
ensure purity of gold.
 SEBI stated that cross-holding in credit rating agencies (CRAs) will be capped at 10% & also decided to raise the minimum net worth
requirement to Rs. 25 crores from the current Rs 5 crores.
 Cryptocurrency dealer 'Pluto Exchange' announced the launch of India‘s first mobile application for transacting in virtual
currencies.
 GST Council decided to implement the e-way bill mechanism throughout the country by June 1st after reviewing the
readiness of the IT network.
 Provisional figures of Direct Tax collections up to November 2017, show that net collections are at Rs. 4.8 lakh crore which is 14.4% higher
than last year.
 FM Arun Jaitley holds his 5th Pre-Budget Consultation Meeting with the leading Economists in New Delhi. Fiscal deficit as a ratio of
GDP stood at 3.9% in 2015-16 & 3.5% in 2016-17 & is budgeted to be 3.2% for the Current Financial Year 2017-18.
 Axis Securities, a subsidiary of Axis Bank become the first-ever broking arm of a bank to take membership of a commodity exchange
by registering itself with NCDEX.
 BSE's India International Exchange (India INX) received approval from SEBI for the listing of debt securities. This will enable
Indian & foreign issuers to issue masala bonds, Eurobonds, & foreign currency bonds from India INX at International Financial Service
Centre (IFSC) at GIFT.
 Govt. fixed Rs 2,890 per gram as the price of new series of sovereign gold bonds (SGBs). Govt. decided to offer a discount of Rs 50
per gram to investors applying online & making payments digitally. Minimum investment in the bonds is one gram, with a maximum
limit of 500 grams per person, per financial year.
 Cabinet approved the setting up of the 15th Finance Commission which will assess the tax resources of the nation & suggest a
formula for their devolution among states. Its recommendations will have to be in place before April 1, 2020, it takes 2 years for
FC to give its recommendations.
 Govt. notified Minimum Export Price of onion at 850 dollars per tonne to ensure its availability in domestic mkt. FDI in the country
increased by 17 percent to USD 25.35 billion during April-September fiscal (2017-18).
 New York based Standard & Poor‘s (S&P) kept its sovereign rating for India unchanged at 'BBB-', with outlook for the
nation as 'stable‘.
 ADB increased annual funding to India to up to $4 billion from existing $2.7 billion from next year.
 23rd GST Council Meet held in Guwahati. It was headed FM Jaitley. GST rate on 177 items reduced from 28% to 18%. Only 50
items will attract 28% GST rate.
 As per CBDT, farmers are not required show PAN for cash sale of their produce up to Rs. 2 lakh a day.
 Report by Bank of America-Merrill Lynch stated that in next decade, India will overtake Japan to become the third-largest
economy. As per this, India is likely to become the world‘s 5th largest economy by 2019.
 Moody's Investors Service upgraded India's local & foreign currency issuer ratings to Baa2 from Baa3 & changed the outlook on the
rating to stable from positive. It has revised the ratings after gap of 14 years.
 Ministry of Finance increased maximum age of joining the National Pension System (NPS) from the existing 60 years to 65 years
under NPS - Private Sector (i.e. all citizen & corporate model).
 Income Tax Department clarified that the cash sales of agricultural produce by a cultivator to a trader for less than 2 lakh rupees
will not attract tax under the Income Tax Act.
 Centre made the use of Public Finance Management System (PFMS) mandatory for all central schemes. FM Jaitley stated that
making use of the PFMS mandatorily will ensure benefits of Govt. schemes to reach the last mile. A total of 613 schemes of the central
Govt. will be covered under PFMS.
 SIDBI revamped its portal www.udyamimitra.in with enhanced features to provide easy access to credit & hand-holding services
for MSME. The portal is mobile-enabled & provides a self-assessment module.
 National Investment & Infrastructure Fund (NIIF) of India signed an investment agreement worth $1 billion with Abu Dhabi
Investment Authority (ADIA).
 As per the NITI Aayog Vice-Chairman Rajiv Kumar, the GDP is likely to grow at 6.9-7% this fiscal (2017-18) & 7.5% in
2018-19. Economic growth was 7.1% in 2016 17.
 An MoU was signed by CRISIL & SIDBI to launch CriSidEx, a sentiment Index for MSMEs.
 India becomes biggest consumer of Ukraine agriculture exports.
 Govt. made biometric identification Aadhaar mandatory for all post office deposits, PPF, the National Savings Certificate
scheme & Kisan Vikas Patra. All depositors have been given time till December 31, 2017 to provide the 12-digit unique identification
number & link it with their accounts.
 Coffee output in India is pegged to be a record 3.50 lakh tonnes in the 2017-18 marketing year started this month on higher
acreage.
 AIIB approved USD 2 million loan (Rs. 13,000 crores) for five projects in Andhra Pradesh.
 Asset Reconstruction Companies (ARCs): ARC's are specialized financial institution that buys the NPAs or bad assets from banks &
other financial institutions to clean up the balance sheets of Banks & FIs.
 HDFC Bank: Mumbai | CEO: Aditya Puri| Bank aapki mutthi mein
 LEI: Legal Entity Identifier (LEI) is a global reference number that uniquely identifies every legal entity or structure that is party to a
financial transaction, in any jurisdiction.
 SHG's: Self-Help Group (SHG) is a small voluntary association of poor people who comes together for the purpose of solving their
common problems through self-help & mutual help. SHG promotes small savings among its members. The savings are kept with a bank.
 As per the HSBC report, India's growth rate is expected to accelerate at around 6.5 percent in 2017-18 & is likely to improve further to 7.6
percent by 2019-20.
 Customers will not have to pay any transaction charges for payments through debit card, BHIM app & other payment made for
up to Rs 2,000. Union Cabinet had recently approved a proposal that Govt. will bear the merchant discount rate (MDR) charges on
transactions up to Rs 2,000 made through debit cards, BHIM UPI or Aadhaar-enabled payment systems to promote digital
transactions.
 HDFC Bank announced a partnership with Rajasthan Govt. to promote & nurture startups in the state.
 State Bank of India & NABARD have signed an agreement with five NGOs in Bengal for the promotion of 2,500 joint liability
groups (JLGs) in select districts of the State. JLGs are informal groups of 4-10 members engaged in similar economic activities & willing
to jointly undertake the responsibility to repay loans taken by the group from a bank.
 As per Finance Ministry, RBI Bonds Scheme has not been closed but the interest rate on such papers lowered to 7.75 percent. The 8 percent
Savings Bonds Scheme, also known as RBI Bonds Scheme is being replaced by 7.75 percent Savings Bonds Scheme. These taxable bonds are
meant for individual other than Non-Resident Indians with no maximum limit for investment.
 Peer-to-peer (P2P) Lending
 Peer to Peer lending, also known as P2P Lending, is a financial innovation which connects verified borrowers seeking
 unsecured personal loans with investors looking to earn higher returns on their investments. All peer-to-peer lending (P2P) platforms will
be regulated by the Reserve Bank of India (RBI).
 Masala Bonds - It refers to the rupee-denominated borrowings by Indian entities in overseas markets.
 Gross Value Added - It is a measure of total output & income in the economy. It provides the rupee value for the amount of goods &
services produced in an economy after deducting the cost of inputs & raw materials that have gone into the production. GVA gives a picture
of the state of economic activity from the producers‘ side or supply side, the GDP gives the picture from the consumers‘ side or demand
perspective.
 FTSE SBI Bond Index -FTSE SBI Indian Govt. Bond Index, launched in partnership with SBI, denominated in INR, is a market-
capitalisation weighted total-return index tracking the domestic Indian Govt. bond market.
 Financial Times Stock Exchange (FTSE) is a share index of the 100 companies listed on the London Stock Exchange with the highest
market capitalisation.
 BBPS - Bharat Bill Payments System (BBPS) is an integrated online platform which is being developed by the National Payments
Corporation of India for all kinds of bill payments. It would connect the utility service companies on one end & all
payments service providers on the other.
Foreign Exchange Reserves as on 22nd December 2017
Rs.Bn. US$ Mn.
Total Reserves 25936.2 404921.8
1.1 Foreign Currency Assets 24375.6 380680.1
1.2 Gold 1334.8 20716
1.3 SDRs 96.2 1502.6
1.4 Reserve Position in the IMF 129.6 2023.1
BANKS/HQ/CEO/ TAG LINE

 Andhra bank: HQ: Hyderabad | CEO: Shri Suresh N Patel | Where India Banks
 BOB: HQ: Vadodara | CEO: P. S. Jayakumar | India's International Bank
 BOI: HQ: Mumbai | CEO: Dinabandhu Mohapatra | Relationship Beyond Banking
 Union Bank of India: HQ: Mumbai | CEO: Rajkiran Rai G. | Good People to bank with
 PNB | The Name you can Bank Upon | New Delhi | CEO: Sunil Mehta
 BSNL | New Delhi | CEO: Shri Anupam Shrivastava
 J&K Bank | Serving to Empower | Srinagar | Parvez Ahmed (Chairman & CEO)
 Vijaya Bank | A friend you can Bank Upon | Bengaluru | Shri. R A Sankara Narayanan (MD & CEO)
 IDBI Bank | Bank aisa Dost jaisa | Mumbai | Mr. Mahesh Kumar Jain (MD & CEO)
 Syndicate Bank| Faithful, Friendly | Mr Melwyn Rego, Managing Director & CEO
 Canara Bank| Together we can | Shri. Rakesh Sharma, MD & CEO
 Indian Bank| Your Own Bank | Mr. Kishor Kharat, MD & CEO
 Corporation Bank | Shri. Jai Kumar Garg: Managing Director & CEO
 Indian Overseas Bank | Good People to Grow with | Shri. R. Subramaniakumar: MD & CEO
 Union Bank of India| Good People to Bank with| Shri Rajkiran Rai G, Managing Director & CEO
 Fincare Small Finance Bank | Bengaluru| Pramod Kabra, Chairman| Rajeev Yadav, MD& CEO
 Airtel Payment Bank| Shashi Arora, MD & CEO
 Ujjivan Small Finance Bank| Bengaluru, India| Samit Ghosh, CEO & MD
 FINO Payment Bank| Qadar Aapki Mehnat Ki| Mumbai| Rishi Gupta, MD & CEO
 ICICI Bank| CEO: Chanda Kochhar| Mumbai| Industrial Credit & Investment Corporation of India
 HDFC Bank| Bank aapki mutthi mein| CEO: Aditya Puri|Mumbai
 Karnataka Bank| Your Family Bank Across India| Shri Mahabaleshwara M. S., MD & CEO
 IndusInd Bank| Mumbai| R. Seshasayee, Chairman| Romesh Sobti, MD & CEO
 Karur Vysya Bank| Smart Way to Bank| Karur, Tamil Nadu| Shri P R Seshadri, MD & CEO
 Vijaya Bank: HQ: Bengaluru | CEO: R. A. Sankara Narayanan | A Friend you can bank upon
 Federal Bank: HQ: Aluva, Kochi, Kerala: CEO: Shyam Srinivasan | Your Perfect Banking Partner
 RBL Bank: HQ: Mumbai | CEO: Vishwavir Ahuja | Apno ka bank
 Kotak Mahindra Bank: HQ: Mumbai | Founder: Uday Kotak
 IndusInd Bank: HQ: Mumbai | CEO: Romesh Sobti |
 Corporation Bank: HQ: Mangalore | CEO: Jai Kumar Garg
 Bank of China: HQ: Beijing, China
 PayPal: American company | CEO: Daniel Schulman
 HSBC: HQ: London, United Kingdom
 IDFC Bank| The Bank of Now| Mumbai | Dr. Rajiv Lall, FOUNDER MD & CEO
 Axis Bank| CEO: Shikha Sharma| Chairperson: Dr. Sanjiv Misra (Part Time) | Mumbai
 Kotak Mahindra Bank| Arvind Kathpalia, President| Mumbai
 South Indian Bank| Experience Next Generation Banking| Thrissur, Kerala| V.G. Mathew, MD & CEO
 Yes Bank| Mumbai| CEO: Rana Kapoor
 EXIM Bank| 1982 under the Export-Import Bank of India Act, 1981| David Rasquinha, MD
 SIDBI| Small Industries Development Bank of India| April 2, 1990| Mohammad Mustafa,CMD
 NHB| National Housing Bank | Sriram Kalyanaraman, MD &CEO| July 9, 1988- NHB Act, 1987
 NHB is wholly owned by Reserve Bank of India, which contributed the entire paid-up capital.
 Asian Development Bank (ADB) | Philippines| President: Takehiko Nakao| 19 Dec 1966| 67 countries
 World Bank | President: Jim Yong Kim| CEO: Kristalina Georgieva| Washington, D.C., United States
 WTO| Geneva, Switzerland| 1 Jan 1995| 164 countries (July 2016) | Roberto Azevêdo (Director-General)
 SEBI| Ajay Tyagi, Chairman | Mumbai
 New Development Bank| Shanghai, China| President: K. V. Kamath| 15 July 2014
 Insolvency & Bankruptcy Board of India was set up on 1st October 2016 under the Insolvency & Bankruptcy Code, 2016 (Code).
It has regulatory oversight over the Insolvency Professionals, Insolvency Professional Agencies & Information Utilities.It writes &
enforces rules for transactions, namely, corporate insolvency resolution, corporate liquidation, individual insolvency resolution &
individual bankruptcy under the Code. Dr. M. S. Sahoo is the Chairperson.
 National Payments Corporation of India, an umbrella organisation for operating retail payments & settlement systems in India. It is an
initiative of RBI & Indian Banks‘ Association (IBA) under the provisions of the Payment & Settlement Systems Act, 2007, for creating a
robust Payment & Settlement Infrastructure in India. Shri B. Sambamurthy, Interim Chairman.
 Asian Infrastructure Investment Bank (AIIB) is a new multilateral financial institution founded to bring countries together to
address the daunting infrastructure needs across Asia. Mr. Jin Liqun, AIIB President.
 Infrastructure Investment Trusts (InvITs) & Real Estate Investment Trusts (REITs) - REITs are listed entities that primarily invest in
leased office & retail assets, allowing developers to raise funds by selling completed buildings to investors. REITs are trusts that manage
income-generating infrastructure assets, typically offering investors regular yield & a liquid method of investing in infrastructure projects.
 Controller General of Accounts (CGA) : The Principal Advisor on Accounting matters to the Union Govt.. He is Responsible for
establishing & managing a technically sound Management Accounting System. Responsible for preparation & submission of the accounts
of the Union Govt.. Shri Anthony Lianzuala is currently the CGA.
 Unique Identification Authority of India (UIDAI) is a statutory authority established under the provisions of the Aadhaar Act, 2016 on
12 July 2016 by the Govt. of India. Shri J Satyanarayana, Chairman(part-time), UIDAI| Dr. Ajay Bhushan Pandey, CEO HQ:| New Delhi
 Multi Commodity Exchange Ltd - It is a state-of-the-art, commodity derivatives exchange that facilitates online trading, & clearing &
settlement of commodity derivatives transactions, thereby providing a platform for risk management.
 Mr. Saurabh Chandra: Chairman
 Department of Investment & Public Asset Management (DIPAM) : Total disinvestment proceeds during the Current Financial Year
2017-18 is Rs. 19,759.22 crore (as on 4th October, 2017)
 Centre unveiled the contours of the 'Electoral Bonds‘ scheme, which seeks to ensure the flow of clean money to political parties,
without revealing the donors‘ names. The electoral bonds will be a bearer instrument in the nature of a Promissory Note & an interest-free
banking instrument. A citizen of India or a body incorporated in India will be eligible to purchase the bond from specified branches of the
State Bank of India. The bonds can be purchased for any value in multiples of Rs1,000; Rs10,000.
 RBI initiated 'prompt corrective action' (PCA) against Allahabad Bank over its high bad loans.
 NABARD sanctioned Rs 372.51 crore loan assistance under the Rural Infrastructure Development Fund (RIDF) to Odisha towards
irrigation & rural bridge projects for the last quarter of this fiscal.
 Andhra Pradesh Grameena Vikas Bank (APGVB) operationalised its first desktop ATM in Telangana. The mini-ATM within
the branch premises will facilitate customers to withdraw small amounts. With these ATMs, there will be no need for separate ATM
rooms, so there is no security issue.
 FM Jaitley said that donation to political parties through electoral bonds will bring transparency into the donation process. Electoral bond would
be issued in any value in multiplies of 1,000 rupees, 10,000 rupees, 1,00,000 rupees, 10,00,000 rupees & 1,00,00,000 rupees from the specified
branches of SBI. Electoral bond will have life of 15 days. The bond will be available for the purchase for the period of 10 days in the month of January,
April, July & October or as specified by the Union Govt.. The bond would be encashed by the political party through only a designated account.
 Doctors called off their 12-hour strike today when the National Medical Commission Bill was referred to a standing committee of
Parliament for a thorough evaluation. The National Medical Commission Bill, 2017, which seeks to replace the Medical Council of India with
a new body, has been referred to the Standing Committee.
 The board of SEBI met in Mumbai & decided to enhance eligibility requirement for Credit Rating Agency including minimum net worth
requirement should be increased from existing 5 crore to 25 crores.
 MoS for Communication Manoj Sinha launched project 'DARPAN'- Digital Advancement of Rural Post Office for a New India
in New Delhi. DARPAN will provide low-power technology solution which will enable each of around 1.29 Lakhs Branch Post
Offices to improve the level of services being offered to rural customers. Total Outlay is Rs. 1400 Crores.
 Govt. released the much-required equity capital of over Rs 7,500-crore to six stressed public sector banks (PSBs). These banks include
Bank of India, IDBI Bank, Uco Bank, Bank of Maharashtra, Dena Bank & Central Bank of India. The move was taken so that the banks met the
prescribed regulatory capital requirement. The funds allocated to these banks are Bank of India (Rs 2,257 crore), Central Bank of India (Rs 323
crore), Dena Bank (Rs 243 crore), IDBI Bank (Rs 2,729 crore), Bank of Maharashtra (Rs 650 crore) & UCO Bank (Rs 1,375 crore).
 Loan defaulters can participate in bidding under the insolvency proceedings after paying due interest & making their bad loan accounts
operational, as per FM Jaitley. The Insolvency & Bankruptcy Code Amendment Bill, 2017, seeks to replace an ordinance to prevent
unscrupulous persons from misusing or vitiating the provisions of the Insolvency & Bankruptcy Code (IBC).
 Bitcoin's rival cryptocurrency Ripple has surpassed Ethereum as the world's second largest cryptocurrency by market capitalisation.
 Govt. has launched the Bharat-22 Exchange Traded Fund (ETF) to benefit long term & retail investors by providing an opportunity
of participation in equity stocks of the Govt. run companies & earn stable returns. The objective of BHARAT 22 ETF is to invest in
constituents (22 companies) of S & P BSE Bharat 22 Index & endeavour to provide returns before expenses. As per Central Statistics
Office, the growth rate of GDP at constant prices was 7.5%, 8.0% & 7.1% in 2014 15, 2015-16 & 2016-17. Growth in GDP at constant
market prices was 5.7% & 6.3% in Quarter 1 (Q1) & Quarter 2 (Q2) of 2017-18.
 Central Board of Direct Taxes (CBDT) has entered into three more Advance Pricing Agreements (APAs) in December, 2017.
While two of the Agreements are Unilateral, one is a Bilateral with the United Kingdom. With this, the total number of APAs entered into by
the CBDT has gone up to 189. This includes 173 Unilateral APAs & 16 Bilateral APAs.
 Govt. has launched the Pradhan Mantri Vaya Vandana Yojana (PMVVY)‘ to provide social security during old age & to
protect elderly persons aged 60 & above against a future fall in their interest income due to uncertain market conditions. The scheme
enables old age income security for senior citizens through provision of assured pension/return linked to the subscription amount based
on Govt. guarantee to Life Insurance Corporation of India (LIC). The scheme provides an assured return of 8% for 10 years. Pension is
payable at the end of each period during the policy tenure of 10 years. Minimum purchase price under the scheme is Rs.1,50,000/- for a
minimum pension of Rs. 1,000/- per month & the maximum purchase price is Rs.7,50,000/- for a maximum pension of Rs. 5,000/- per
month.
Important Data
 As on 15.12.2017, out of 106.41 crore Current Account & Savings Account (CASA), 82.47 crore accounts are seeded with Aadhaar
number. As on date, 400 schemes from 56 Ministries/ Departments are being implemented under DBT. Out of 30.76 crore Pradhan
Mantri Jan Dhan Yojana (PMJDY) accounts 22.58 crore PMJDY accounts have been seeded with Aadhaar number, as on 20.12.2017.
 President of India, Shri Ram Nath Kovind, inaugurated housing complexes for economically weaker sections under Basic Services to
Urban Poor (BSUP) schemes of Govt. of Mizoram in Aizawl.
 Cabinet Committee on Economic Affairs chaired by the PM Narendra Modi, has approved the continuation of Rashtriya Krishi
VikasYojana (RKVY) as Rashtriya Krishi VikasYojana- Remunerative Approaches for Agriculture & Allied sector Rejuvenation
(RKVYRAFTAAR) for three years i.e. 2017-18 to 2019-20. The financial allocation of the scheme will be Rs. 15,722 crores. Minister of
State (IC) for Power & New & Renewable Energy, Shri Raj Kumar Singh informed that Energy Efficiency Services Limited
(EESL), is distributing LED bulbs under Unnat Jyoti by Affordable LEDs for All (UJALA) to domestic consumers across the
country. As on 19th December, 2017, more than 28 crore LED bulbs have been distributed under the scheme. In addition, other market
players in the private sector have also sold 52.43 crore LED bulbs till October, 2017.
 The state Govt. of Manipur has launched "Pradhan Mantri Sahaj Bijli Har Ghar Yojana" or "SAUBHAGYA" to provide
electricity for all the households in rural & urban areas. Under SAUBHAGYA scheme, the Govt. will provide power connection to
every household at the doorstep. The main objective of this scheme is to provide last mile power connection which covers all rural
& urban households across the nation.
 "Sankalp Se Siddhi" (Attainment through Resolve) programme is a new initiative launched by PM Narendra Modi for a
New India movement from 2017 to 2022. This program aims to bring in many changes in the country for the betterment of
country‘s economy, citizens, society, governance, security & other verticals.
 Pradhan Mantri Matritva Vandana Yojana (PMMVY) is the renamed & revamped version of Matritva Sahyog Yojana under
which Govt. would provide Rs. 6000 financial aid to pregnant & lactating mothers for the first live birth.
 Shadi Shagun: This Scheme Launched By Narendra Modi Govt. In 2017 to Promote education among Minorities & Giving
them Help of INR 51000 at the time of wedding if the Girl Is a Muslim & Graduate also. Pradhan Mantri Gram Parivahan
Yojana: The Scheme is launched By Central Govt. to Promote Women Empowerment. Under the PMGPY scheme, the Govt.
would provide interest free loans to women self-help group to buy commercial passenger vehicles.
IMPORTANT ABBREVIATION
 PMAY: Pradhan Mantri Awaas Yojna
 PMMSK: Pradhan Mantri Mahila Shakti Kendra PMVVY: Pradhan Mantri Vaya Vandana Yojana PMGPY: Pradhan Mantri Gram
Parivahan Yojana BSUP: Basic Services to Urban Poor
 IICA: Indian Institute of Corporate Affairs
 RKVY: Rashtriya Krishi VikasYojana
 RKVY-RAFTAAR: Rashtriya Krishi VikasYojana- Remunerative Approaches for Agriculture & Allied-sector Rejuvenation
 PMMVY: Pradhan Mantri Matritva Vandana Yojana DBT: Direct Benefit Transfer
 PAHAL: Pratyaksh Hanstantrit Labh
 MGNREGS: Mahatma Gandhi National Rural Employment Guarantee Scheme
 NSAP: National Social Assistance Programme
 HDFC Bank- India‘s largest private bank by market capitalization .HDFC Bank Chairman- Aditya Puri.
 RBI labelled HDFC Bank as ‗domestic systematically important bank‘—in other words, 'too big to fail'.
 Arun Jaitley is the Present Finance Minister of India. R K Shanmukhan Chetty was 1st Finance Minister of Independent India.
 SBI Chairman- Rajnish Kumar, HQ:- Mumbai, Established on- 01st July 1955.
Companies Key Points
Paytm App crossed 100 million milestone on Google Play Store
Airtel Payments Bank CEO Shashi Arora quit the company following the controversy of violation of rules on
using Aadhaar for its e-KYC.
SBI Card & Bharat Petroleum, launched the BPCL SBI Card – most rewarding fuel co-branded credit card.
HDFC Sold its realty brokerage business HDFC Realty & HDFC RED (Real Estate
Destination) to online classifieds player Quikr.
Bharti Airtel Ltd Signed Definitive agreement with Millicom International Cellular S.A., under which
Airtel Rwanda Ltd will acquire 100% equity in Tigo Rwanda Ltd.
Ola, operated by ANI Acquired food delivery start-up Foodpanda India Pvt. Ltd from its German parent
Technologies Pvt. Ltd Delivery Hero AG
Dish TV India Limited Received the final approval for closing of the merger of Videocon d2h with DishTV.
Samsung India Tie-up with UNESCO for virtual reality content & 360-degree videos on Indian heritage.
Maruti Suzuki Became India's sixth most valued firm, crossing SBI. Reliance Industries is the country's most
valued company firm in India.
Paytm Bought an undisclosed stake in Urja Money Pvt. Ltd, which evaluates creditworthiness
of people seeking loans to buy two-wheelers.
Moody's Investors Service has upgraded the ratings of infrastructure Govt.-related issuers (GRIs) NTPC, NHPC,
NHAI & GAIL to Baa2 in line with India's sovereign ratings.
Walmart India Launched its first fulfilment centre in Mumbai.
ONGC Got approval from the Department of Investment & Public Asset Management for
acquiring the majority stake in HPCL. ONGC acquired 51.11% stake in HPCL.
Tata Steel Established India‘s largest Coke Dry Quenching (CDQ) facility at Kalinganagar
Industrial Complex in Jajpur district of Odisha.
Reliance Communication Received the final approval on its merger with Sistema from the Department of
Telecommunication (DoT). This merger will extend validity of RCom's spectrum
portfolio in the highly valued 800 & 850 MHz band.
Reliance Industries Ltd-RIL Became the first Indian company to cross Rs. 6 trillion market capitalization.
Online travel solutions provider Cleartrip named the 'Best Mobile App for Travel & Leisure' at Mobexx Awards.
Hindustan Petroleum become the first Oil Marketing Company (OMC) from India to mark its presence in the
Corporation Limited-HPCL lubricant market in Myanmar.
Honda Motorcycle & Raced past Bajaj Auto to become 2nd biggest bike seller in India during the first half of
Scooter India (HMSI) the ongoing fiscal.
Yatra Online Inc has tied up with OYO to bring the hospitality firm's inventory on its platform.
Bharti Airtel Received Ghana‘s National Communications Authority‘s approval for the merger
between Bharti Ghana (Airtel) & Millicom Ghana (Tigo), subject to certain conditions.
Prasar Bharati Chairman A Launched an online application system for music auditions across all genres for the
Surya Prakash All India Radio.
Magicbricks Launched India's first online bidding platform for residential & commercial
properties & tied-up with developer M3M for inaugural 'My Bid, My Home' under
which consumers can bid for ready-to-move-in residential properties in Gurugram.
Flipkart Launched MarQ, an in-house brand in the large appliances category. MarQ is an in-
house brand of Flipkart, that sells large appliances.
J Sagar Associates (JSA) is the first law firm to have opened an office at Gujarat International Finance Tec-City
(GIFT). The office was inaugurated by Sudhir Mankad - Chairman of GIFT IFSC.
INTERNATIONAL COMPANIES
Amazon Bought an Andover, Massachusetts-based company 'Blink' that makes Internet-
connected doorbells & security cameras.
Samsung Launched its 'Bill Payments' on its flagship payments service, Samsung Pay in
partnership with Axis Bank.
Tencent become the first Chinese company to be valued at more than $500 billion in Asia.
Facebook Expects to train about five lakh people in India on digital skills by 2020 & unveiled two programmes which
Swedish Company IKEA are Facebook
Launched Digital
its first Training
experiential & Facebook
centre 'IKEA Hej Startup
HOME' Training Hubs.
in Hyderabad
Jet Airways & Air France- Come in partnership to route more traffic through Europe & on to North America.
KLM
Uber Technologies Inc. Approved SoftBank Group Corp.‘s offer to buy a multibillion-dollar stake in UBER.
Amazon Web Services Teamed up to launch an open-source & deep learning interface 'Gluon' that will help
(AWS) & Microsoft
Tech major SAP Launched developers to deploy
the Asia Pacific machine
Japan (APJ)learning
region's models
first SAPacross several
Leonardo platforms.
Center in Bengaluru.
Purpose for which Committee is formed Headed by
1 High-level committee set upby the Govt. to address the problem of stressed Headed by NITI Aayog chief
assets in India's power sector. executive Amitabh Kant
2 7-member committee formed by Union Environment Ministry to formulate Environment Secretary C.K.
measures to solve the problem of air pollution in Delhi-NCR region. Mishra
3 Govt. set up a ministerial panel to consider & oversee mergers among the FM Arun Jaitley
country‘s 21 state-run banks.
4 Govt. constituted task force for redrafting the 50-year old income tax law in Arbind Modi, CBDT Member
sync with the economic needs of the country. (Legislation) as the Convener
5 Panel formed by RBI for hedging commodities in global markets Chandan Sinha
6 Economic Advisory Council to PM (EAC-PM) held its first meeting in New EAC-PM is chaired by Dr. Bibey
Delhi to deliberate upon & lay out a roadmap to give a leg up to the Indian Debroy
economy in the short term.
7 Inter-State Council (investigates & advises on disputes between states) has PM Modi is the Chairman
been reconstituted
8 Committee formed for the review of the laws governing Goods & Services M Vinod Kumar
Tax (GST).
9 Panel for by the Govt. to study merger of District Central Cooperative Yashwant Thorat
Banks (DCCBs) with Maharashtra State Cooperative (MSC) Bank
10 Group of ministers (GoM) on making the GST composition scheme more Assam Finance Minister Himanta
attractive held its first meeting in New Delhi. Biswa Sarma
The 5-member GoM, led by:
11 5-member committee formed to select the candidate for the post of editor- Prasar Bharati Chairman A Surya
in-chief of Rajya Sabha TV (RSTV). Prakash
12 President Kovind appointed a five-member Committee to examine sub- Headed by Delhi High Court's
categorization of OBCs under Article 340 of the Constitution. former Chief Justice G Rohini
13 Govt.'s Committee on Haj Policy has recommended phasing out of subsidy Headed by Afzal Amanullah
for Haj pilgrims & allowing women devotees above 45 years of age to travel
in a group of at least four without a male
Committee Date Headed by
Mundra Committee-To Speed up the Process of Recalibration of ATMs November 2016 S.S .Mundra
To study the regulatory issues relating to Financial Technology (Fintech) June 2016 SudarshanSen
and Digital Banking in India
PJ Nayak Committee -To Review Governance of Boards of Banks in India. June 2016 P J Nayak
To look at the various facets of household finance in India and to August 2016 Dr. TarunRamadorai
benchmark India's position
Working Group on Import Data Processing and Monitoring System April 2016 A. K. Pandey
Working Group on Interest Rate Options February 2016 P. G. Apte
Advisory Committee on Ways and Means Advances to State Governments December 2015 Deepak Mohanty
January 2016 Sumit Bose Committee on Mediumterm Path on Financial
Inclusion
Committee on Differential Premium System for Banks in India September 2015 Jasbir Singh
Working Group on Compilation of Flow of Funds Accounts for Indian August 2015 D. K. Mohanty
Economy August
2015 D. K. Mohanty Compilation of Flow of Funds Accounts of the Indian
Economy
14 Centre has set up a high-level committee for proper management of water NITI Aayog Vice Chairman Rajiv
resources in the North-Eastern region to be head by Kumar
IMPORTANT COMMITTEE
1. B N Srikrishna Committee - to review institutionalization of arbitration mechanism in India_____
2. Ajit Mohan committee - to fight against the menace of online piracy.
3. Nripendra Mishra Committee - on Indus Water Treaty.
4. Ratan Watal Committee for Digital Payments. Note: The 11- member committee was notified in September 2016 by the
Union Finance Ministry to review existing payment systems in country and recommend appropriate measures for
encouraging Digital Payments & - to suggest steps to promote card payments
5. Committee on Demonetisation - Andhra Pradesh Chief Minister N. Chandrababu Naidu.
6. Recalibration of Automated Teller Machines (ATM) - Task Force headed by S.S Mundra, Deputy Governor, Reserve Bank of
India (RBI)
7. Chandrababu Naidu Committee : Committee on effects of Demonetisation of States/People
RECENT RBI COMMITTESS
High Powered Committee on Urban Co operative Banks (UCBs) June 2015 R. Gandhi
Committee on Data Standardization March 2015 LP. Parthasarathi

Internal Working Group (1WG) to Revisit the Existing Priority Sector March 2015 Lily Vadera
Lending Guidelines
Committee on Capacity Building in Banks and NonBanks September 2014 G. Gopalakrishna
Committee on Implementation of Countercyclical Capital July 2014 B. Mahapatra

Buffer
Committee on Data and Information Management in the Reserve July 2014 D. K. Mohanty
Bank of India.
Committee on Productivity Growth for the Indian Economy June 2014 B. N. Goldar
Committee to Review Governance of Boards of Banks in India May 2014 P. J. Nayak
Working Group on Resolution Regime for Financial Institutions May 2014 Anand Sinha
GIRO Advisory Group - UmeshBellur Group on Enabling PKI in Payment April 2014 Anil Kumar Sharma
System Applications
Committee on Licensing of New Urban Cooperative Banks September 2011 Malegam Committee
Committee on Issues and Concerns in the NEFC Sector August 2011 Usha Throat
 Schemes launched by Union Govt.

 Govt. formally launched the 'Ganga Gram‘ project at the Ganga Gram Swachata Sammelan in New Delhi. It is an integrated
approach for the holistic development of villages situated on the banks of the holy river with the active participation of villagers.
With an aim to bring the foreign policy to the masses, External Affairs Ministry come up with an initiative called SAMEEP - 'Students
& MEA Engagement Programme'. Under this, MEA official will talk to students to help them better understand foreign policy. The main
objective is to take Indian foreign policy & its global engagements to students across the country.
Union Cabinet chaired by PM Modi approved the Ministry of Railways' transformative initiative to set up India's first ever National
Rail & Transport University (NRTU) in Vadodara, Gujarat to skill its human resources & build capability.
CCEA given its approval for a new skill development scheme covering the entire value chain of the textile sector excluding Spinning &
Weaving in organized Sector, titled "Scheme for Capacity Building in Textile Sector (SCBTS)" from 2017-18 to 2019-20 with an outlay of
Rs. 1300 crore. It will have National Skill Qualification Framework (NSQF) compliant training courses.
President Kovind, laid the foundation stone of the 'Nyaya Gram project' of the High Court of Allahabad in Allahabad, Uttar Pradesh.
'Nyaya Gram' is a residential & training complex of Allahabad High Court.
A Public Procurement Portal named 'MSME Sambandh‘ launched by Shri Giriraj Singh, MoS (IC) for MSME in New Delhi. The
objective is to monitor the implementation of Public Procurement from MSEs by C-PSE.
On 2nd Anniversary of Ujwal DISCOM Assurance Yojana (UDAY), Govt. of India signed four MoUs under the Scheme with the State of
Nagaland & with Union Territories (UTs) of Andaman & Nicobar Islands, Dadra & Nagar Haveli & Daman & Diu for operational improvements.
PM Modi launched Umang mobile application, an integrated platform for Govt. to citizen services. Umang- an acronym for "unified mobile app
for new age" e-governance - currently hosts around 162 services from 33 Govt. departments of central & state Govt.s. It is developed by Ministry of
Electronics & Information Technology (MEITY).
Centre approved setting up of 'Pradhan Mantri Mahila Shakti Kendras' across 115 most backward districts of the country through a new
scheme for reaching out to rural women & facilitating skill development, employment, digital literacy, health & nutrition. Govt. also approved
expanding Beti Bachao, Beti Padhao scheme from 161 districts to 640 districts in the country, as well as 150 additional 'one stop centres' for the
survivors of sexual violence along with seven other programmes that are part of the umbrella scheme -- the National Mission for Empowerment of
Women. The financial outlay for these schemes from 2017 to 2020 will be Rs 3,636.85 crore.
To provide high-speed broadband service in all Gram Panchayats by March 2019, govt. launched its second & final phase of BharatNet project.
It will be implemented at an outlay of Rs. 34 thousand crores.
 Communications Minister Manoj Sinha launched Sampoorna Bima Gram (SBG) Yojana & an initiative for expansion of clientele
base of Postal Life Insurance (PLI). Under Sampoorna Bima Gram (SBG) Yojana, at least one village (with min. 100 households) will be
identified in each of the revenue districts of the country. Coverage of all households is the primary objective of this scheme
Mahindra & Mahindra has launched a program, Prerna, to empower women working in the agriculture sector by promoting efficient &
ergonomic farm tools & equipment. The project will be initially launched in the state of Odisha, with the intention to positively impact the lives of
over 1,500 families across 30-plus villages. President Kovind launched 100 crore rupees Mata Amritanandamayi Math Project
"Jeevamritham "to provide the filtration system for cleaning drinking water to 5000 villages across India, in Kollam district in Kerala.
Union Minister of State (I/C) of the Ministry of Development of North Eastern Region (DoNER), Dr Jitendra Singh
launched the electronic-Human
Resource Management System (e-HRMS) in New Delhi.Union Agriculture & Farmers‘ Welfare Minister, Shri Radha Mohan
Singh has launched Livestock Disease Forewarning –Mobile Application (LDF-Mobile App). The app is developed by ICAR-
National Institute of Veterinary Epidemiology & Disease Informatics (ICAR-NIVEDI), Bengaluru.
To enhance standards of cleanliness on beaches, the environment ministry has launched a pilot project 'Blue Flag' for its clean-up &
development. With the prime objective of enhancing standards of cleanliness, upkeep & basic amenities at beaches, the ministry has launched a
pilot project, also striving for the 'Blue Flag' certification for such identified beaches.
Minister of Communications Manoj Sinha launched DARPAN- ―Digital Advancement of Rural Post Office for A New Indiaǁ Project to
improve the quality of service, add value to services & achieve 'financial inclusion' of the unbanked rural population.
Union Minister of State for Home Affairs, Shri Kiren Rijiju, inaugurated the first national-level training of trainers program to sensitize
various Central Ministries & Departments on the utilization of Sendai Monitor for developing action plans for Disaster Risk Reduction
(DRR) in New Delhi.
Electronics & Information Technology Minister Ravi Shankar Prasad launched first NIC-CERT (Computer Emergency Response
Teams), a setup of National
 Informatics Centre to prevent & predict cyber-attacks on govt. utilities.
Shri R.K. Singh, Minister of State (IC) for Power & New & Renewable Energy, launched the Pradhan Mantri Sahaj Bijli Har Ghar
Yojana – 'Saubhagya‘ Web Portal. It can be accessed at http://saubhagya.gov.in.
Minister of Communications Shri Manoj Sinha launched a Pan India scholarship program for school children called Deen Dayal
SPARSH Yojana to increase the reach of Philately. Note: SPARSH (Scholarship for Promotion of Aptitude & Research in
Stamps as a Hobby). Under this govt proposed to award annual scholarships to children of Standard VI to IX having good academic
record & also pursuing Philately as a hobby. The amount of Scholarship will be Rs. 6000/- per annum @ Rs. 500/- per month.
 Shri Piyush Goyal, Union Minister of Railways & Coal has launched 'Grahak Sadak Koyla Vitaran App‘
 benefitting customers of Coal India Limited (CIL) lifting coal through road mode.
Union Ministries of Power & Textiles jointly launched an initiative 'SAATHI' (Sustainable & Accelerated Adoption of efficient
Textile technologies to Help small Industries). Under this initiative, Energy Efficiency Services Limited (EESL), a public sector entity
under the Union Ministry of Power, will acquire energy efficient Powerlooms, motors & Rapier kits in bulk & provide them to the small
& medium powerloom units. In an attempt to end Gender bias in women against women, the Ministry of Women & Child
Development is undertaking an online campaign #IamThatWoman. Through the campaign, the Ministry seeks to highlight the
various aspects of women standing 'by' & 'for' women.
Indian economy is expected to witness cyclical growth recovery, with real GDP growth likely to accelerate from 6.4 % this year to 7.5% in
2018 & further 7.7% in 2019, as per report of Morgan Stanley.
Indian economy is likely to grow by 7.2% in 2018 & 7.4% in 2019 as per the ‗World Economic Situation & Prospects 2018‘ report by
United Nations Department of Economic & Social Affairs (UN DESA).
 ADB lowered India‘s GDP forecast for the current fiscal by 0.3% to 6.7 %. & 7.3% from March 2018.
 As per Finance Minister, India has recorded an average growth of 7.5% from 2014-15 to 2016-17.
SMALL BANKS :
a. Au Financiers (India) Ltd., Jaipur
b. Capital Local Area Bank Ltd., Jalandhar
c. Disha Microfin Private Ltd., Ahmedabad
d. Equitas Holdings P Limited, Chennai
e. ESAF Microfinance & Investments Private Ltd., Registered Office- Chennai, Corporate Office- Thrissur (Kerala)
f. Janalakshmi Financial Services Private Limited, Bengaluru
g. RGVN (North East) Microfinance Limited, Guwahati , h. Suryoday Micro Finance Private Ltd., Navi Mumbai
i.Ujjivan Financial Services Private Ltd., Bengaluru, j. Utkarsh Micro Finance Private Ltd., Varanasi
PAYMENTBANKS:
a. Aditya Birla Nuvo Limited- Veraval, Gujarat,
b. Airtel M Commerce Services Limited- Registered Office- New Delhi, Corporate Office- Gurugram, Haryana
c. Cholamandalam Distribution Services Limited- Chennai
d. Department of Posts (IPPB)- New Delhi , e. Fino PayTech Limited- Navi Mumbai
f. National Securities Depository Limited- Mumbai, g. Reliance Industries- Mumbai
h.Vodafone m-pesa Limited- Mumbai
11.Questions on Current Affairs related to Banking and Finance
Economy & Finance
1. What are the three measures of inflation? [WPI, CPI, GDP deflator]
2. What is the new base year of Wholesale Price Index [WPI]? [2011-12]
3. What is GDP deflator? [The ratio of nominal GDP to real GDP]
4. Which sector contributes the most to GDP of India? Services then Industry and then Agriculture
5. What is Wholesale Inflation? [ Inflation related to goods used for manufacturing]
6. What is Core Inflation? [Inflation related to goods used by common man.]
7. What is IIP? [Index of Industrial Production]
8. What is the new base year of IIP? [2011-12. earlier, it was 2004-05. Note: It is same as WPI]
9. What is 'Operation Clean Money' portal? This portal launched by the Gol will identify those who have made deposits or
purchases not in line with the declared income.
10.What is UDAY scheme? [Ujwal Discom Assurance Yojana (UDAY) scheme for nursing electricity distribution companies back to
health.]
11.What is SAMPADA? [Scheme for Agro-Marine Processing and Development of Agro-Processing Clusters. It is a new central
scheme introduced by the Ministry of Food Processing Industries. ]
12.What is EPFO? Employees Provident Fund Organisation for central and state govt. employees
13.What is SRIP? [Solar Rooftop Investment Program]
14.What is SATH? ["SATH" is acronym for Sustainable Action for Transforming Human Capital). As per this, NITI Aayog will partner
with 3 states to turn them into role models in the field of education and health.]
15.Where Odisha's first river port is coming up? [On the Mahanadi River in Kendrapara district.]
16.What is PIP? [Public-Private-Partnership. Many infrastructure projects follow this route.]
17.What is One Belt, One Road (OBOR)? China has proposed to build one high way connecting several Asian and European
countries so as to revive ancient trade routes from Asia to Europe. The name of this project is One Belt, One Road (OBOR).
18.From whom Paytm has raised $1.4 billion? [SoftBank Group Corp. Note: Soft Bank is not a bank.] Capital Market
19.Which company has the highest market capitalization? [RIL, followed by TCS and then HDFC Bank]
20.What is the full from of LEI? [Legal Entity Identifier] [Note: This is a 20 character Unique Identity Code assigned to an Investor
or Trader doing transactions in financial market. LEI is to be quoted in all transaction made in any country so as to identify the
parties uniquely.]
21.What is Green Bond/ Green Debt Security? A Debt Security/bond shall be considered as Green Bond or Green Debt Securities",
if the funds raised through it are to be utilized for project(s) and/or asset(s) which use Renewable and sustainable energy
including wind, solar, bio-energy, other sources of energy and thus called clean technology.
22.What is DRHP? [Draft Red Herring Prospectus]
23.Which commodity exchange has declared to merge with Indian Commodity Exchange (ICEX)? [National Multi-Commodity
Exchange (NMCE)].
24.Which depository went for IPO recently? Central Depository Services Limited (CDSL).
25.Which organization issued Muni Bonds recently? [Ans. Pune Municipal Corporation. These are now listed in the BSE. The Gol
provides a subsidy of 2% of the bond amount to the Municipal corporation issuing such bonds]
26.The first corporation to issue Muni bonds is ? [Ahmedabad Municipal Corporation in 1998.]
27.What are InvITs? [These are like mutual funds sponsored by infra companies where high net-worth investors can invest in a
portfolio of infrastructure assets with an objective to get better return. The minimum application amount is Rs 10 laky.]
28.Which is the first InvIT in India? IRB Infrastructure InvIT.
29.What is DIPAM? [The Department of Disinvestment has been named as the Dept. of Investment & Public Assets Management.]
30.What is the Sovereign rating of India given by FITCH? [BBB which is the lowest investment grade rating.]
31.Which is the first cashless city of India? [Chandigarh]
32. The Government has shifted the responsibility of promoting digital transactions in the country
from NITI Aayog to . [MEITY i.e. Ministry of Electronics and Information Technology]
33.What is Aaykar Setu? [It is portal which provides facility to general public to put their grievances online to the Income Tax
Department. It provides various tax tools, tax updates, live chat facility and important links to various processes within the Income
Tax Department.]
34. What is Alternate Mechanism for Bank Consolidation? [It is a committee of central ministers which will provide in principle sanction to
the amalgamation proposals submitted by banks.]
35. Bank is paying lawyer's bill which includes fees Rs 100,000 plus GST 18,000? The TDS would be deducted on the entire amount including
GST or only on Rs 100,000? [Rs 100,000]
36. What is the full form of WLTF bank? [Wholesale and Long-Term Finance (WLTF) Bank] [Note: RBI recently proposed to grant licence for
opening of WLTF banks. These organizations will focus primarily on lending to infrastructure sector and small, medium & corporate businesses.]
37. What will be the minimum capital requirement for a WLTF Bank? [Rs. 1,000 Cr]
38.Which is the first bank to receive an in-principal approval of RBI to set up its wholly-owned subsidiary (WOS) in India? [Bank of
Mauritius]
39.Which is the 2nd international bank to receive in-principal approval of RBI to set up its wholly-owned subsidiary (WOS) in
India? [DBS Bank, Singapore]
40. NEFT settlement cycle has been reduced from hourly batches to --- batches. [Half Hourly]
41. As per RBI guidelines, banks should not take any charges for exchanging up to --- notes. [20]
42.E-Way Bill: What is E-way bill (Electronic way bill)? [When goods of more than Rs 50,000 in value are sent from one place to
another, it must be accompanied by an e-way bill which has to be generated online through the GST portal. Each e-way bill
provides a unique e-way bill number (EBN). E-Way Bill is not required in certain cases.]
43. What is IUC? [Interconnect Usage Charge. Note: The Telecom Regulatory Authority of India (TRAI) has halved the IUC to six paisa with
effect from October 1, 2017 and it will be reduced to Zero starting January 1, 2020. This puts existing operators like Bharti Airtel Ltd,
Vodafone India and Idea Cellular ltd, at a disadvantage vis-a-vis Reliance Jio Infocomm Ltd.]
44.What is Wannacry Ransom ware? [It is the cyber-attack that infects a computer and restricts user's access to it until a ransom
is paid to unlock it.]
45. Where is the headquarters of Habib Bank? Pakistan [Note: This bank was fined USD 630 million (over Rs 4,000 crore) by the US banking
regulator for money laundering activities. Habib Bank's is promoted by Aga Khan Fund for Economic Development [AKFED]. AKFED is also the
promoter of the DCB Bank in India.]
46.Axis Bank Ltd has recently acquired which digital payments platform? [Freecharge owned by Snap Deal]
47. In case of Sovereign gold bond Schemes now the investment limit per fiscal year in case of individuals is ----? [4 kg] [Note it is 4 kg for
Hindu Undivided Family (HUF) and 20 kg for Trusts]
48. Which bank has the highest Gross NPA ratio? [IDBI Bank 24.11 %; Second is 10B with 23.6%]
49. What is full form of CERT-Fin? [Computer Emergency Response Team in the Financial Sector]
50. Which bank has changed working hours of administrative offices/ ROs/ Head Office? [BOB]
51. What is CCEA? [Cabinet Committee on Economic Affairs]
52. What is CCPA? [Cabinet Committee on Political Affairs]
53. What is IIP? [Index of Industrial Production]
54. Which NBFCs can be permitted by RBI to undertake Point of Presence (PoP) services under Pension Fund Regulatory and Development
Authority (PFRDA) for National Pension System (NPS) after registration with PFRDA? [Non-Banking Financial Companies (NBFCs) with minimum
asset size of Rs 500 crore. Such NBFCs are classified as Systematically Important NBFCs]
55. What are REITs (Real Estate Investment Trusts) ?
REITs are similar to mutual funds. While mutual funds invests in equity, bonds, commodities etc, REITs invest in income-
generating real estate assets like commercial places/offices, residential units, hotels, shopping centers, warehouses etc. The
objective is to provide the investors with dividends from profits from the sale of the commercial assets. The trust has to distribute
90% of such income. REITs units are listed on stock exchanges.
56.What are InVITs [Infrastructure Investment Trusts]
InvITs are similar to mutual funds but they invest in infrastructure projects. There are two types of InvITs one, which invest in
completed and revenue generation infrastructure projects; the other, which invests in completed or under-construction projects.
InvITs which invest in completed projects take the route of public offer of its units. Those investing in under construction projects
take the route of private placement of units.
57.What are Alternate Investment Funds
Financial assets like stocks, bonds are called conventional assets. Assets beyond such conventional assets are called Alternate
Assets. These include stocks in unlisted companies, real estate, commodities, derivative contracts and futures. The funds, which
invest in the alternate investment classes, are called Alternate Investment Funds. Such assets carry higher degree of risk and
therefore, small investors are not permitted to invest in such funds. Only institutional investors or high net worth individuals can
do so. There are 3 categories of AIFs.Category I includes social venture funds, infrastructure funds, venture capital funds and SME
funds. Category II includes private equity funds and debt funds. Category III include funds that make short-term investments such
as hedge funds. As banks need to take lower risk with the money deposited with them, RBI has restrictions on banks investments
in AIFs.
58.What is National Anti-Profiteering Authority (NAA) ?
As per provision of the Central GST Act the National Anti-Profiteering Authority (NAA) has power to order a reduction in price
commensurate with the lowering of incidence of taxation under GST. The authority can make the erring company to refund the
money to the consumer along with an interest of 18% or deposit it in the Consumer Welfare Fund.
It can also cancel the registration of any entity if that entity fails to pass the benefits of lower taxes to the consumers.
59.What is Udaya Kotak Committee?
SEBI formed a Committee on Corporate Governance in June, 2017 under the Chairmanship of Mr. Uday Kotak with a view to
enhancing the standards of Corporate Governance of listed companies in India. The Committee has submitted its report to SEBI.
As per new guidelines by SEBI how many types of schemes a mutual fund can have?
60.SEBI has directed MFs to classify their schemes into five categories namely:
61.1.Equity, 2.Debt, 3.Hybrid, 4.Solution Oriented and 5.Others.
62.This classification does not cover, (i) Index Funds, (iii) Exchange Traded Funds (ETFs) tracking different indices; (iiv) Fund of
Funds (i.e. which invests in other mutual fund schemes) and (iv) Sectoral or thematic funds investing in different themes/sectors.
63.Under equity segment, there are can be 10 sub-categories, like multi-cap, large-cap, mid-cap, small-cap, dividend yield and
equity linked saving scheme (ELSS) etc.
64.Note: Large cap means Top 100 companies by market capitalisation, Mid cap (101st- 250th) and Small cap (251st company
onwards).
65.Under debt segment, there are can be 16 sub-categories like : liquid, ultra-short duration, money-market and dynamic bond
schemes.
66.Under hybrid category, there are 6 sub- categories.
67.In solution-oriented segment, there will be retirement fund and children’s fund.
68.MFs can offer only one scheme per category with some exceptions. This is required to help retail investors take decisions
easily.
Asset management companies (AMCs) that have more than one scheme in the stated category would be required to either wind
up, merge or change the fundamental attribute of the scheme after obtaining regulatory permission. Currently, there are 42
Mutual funds/Fund houses /AMCs..
69.Can a broker act as broker in stock exchange and commodity exchange?
As per recent SEBI notification, a single entity can get an integrated authorization to be a stock broker , and to act as broker in
commodity derivative exchanges.
Prior to this, a commodity broker was not permitted to deal with securities and a stockbroker was not permitted to deal with
commodity derivatives.
70.Which is the first Asset Management Company to go for Initial Public Offer? Reliance Nippon Life Asset Management (RNAM) .
71.Which reinsurance company went for IPO recently? General Insurance Company of India.
72.What are P-Notes and why these are banned by SEBI
73.P-notes provide foreign investors an easy entry and exit from Indian markets without any regulatory and tax hassles. They
invested their money through SEBI registered Foreign Institutional investors, which in turn issued them participatory notes. These
participatory notes were transferrable and hence foreign investors found it convenient. However, it was a main source of money
laundering. SEBI has banned P-Notes on derivatives in July 2017.
74.What is FTSE SBI Bond Index Series: FTSE Russel is a global data and analytics provider. State Bank of India and FTSE Russell,
publish a new index series at the London Stock Exchange to enable investors and market participants to track Indian bond
movement. This index will act as a key benchmark for Indian debt for foreign investors looking to invest in Indian debt market.
[Note: For risk management banks, investors need data on time series to calculate the trend, VaR, down side potential etc.]
75.Which exchanges have been permitted by SEBI to allow trading in Crude Oil Future Contracts derivative? SEBI has allowed
exchanges established in GIFT City (INX an NSE IFSC Exchange)to introduce crude oil future contracts and go for trading for the
same
76.Who owned Nobel Prize in Economics? Richard Thaler of Chicago University won the Nobel Prize in economics for 2017 on
behavioural economics.
77.What is Soubhagya? Pradhan Mantri Sahaj Bijli Har Ghar Yojana — Saubhagya aims to ensure electrification of all willing
households in rural and urban areas. [Note;Only 3,000 villages are not electrified t in the country
78.What is Ro- Ro ferry? Prime Minister inaugurated the first phase of Ro-Ro (Roll on, Roll off) ferry service between Ghogha and
Dahej in Gujarat.s.
79.What is Udyami Portal? Banks will have to compete for loans through the revamped udyamimitra. in portal, the portal which
provides online sanction to MSMEs
80.What is BharatMala project or / Bharat Mala Pari yojana ? It is a plan of action to construct
81.34,800 km of roads which will boost infra spending in a big way.
82.Which city is going to have an international Diamond Exchange? [Surat. The exchange will be like that of New York, Antwerp,
Hong Kong and Dubai
83.What is the rank of India for Ease of Doing Business as per World Bank for the year 2018? [ 100. It was 130 last year.]
84.Who has taken over as the CMD of SBI? [Rajnish Kumar.]
85.Name ten companies where NABARD holds equity. Ans[ (i) Agriculture Insurance Co. of India Ltd (AICIL),(ii) AFC India Ltd, (iii)
National Commodity and Derivatives Exchange Ltd (NCDEX), (iv) Multi Commodity Exchange of India Ltd (MCX), (v) Indian
Financial Technology & Allied Services (IFTAS), (vi) CSC e-Governance Services India Ltd (CeGSIL), (vii) Agriculture Skill Council of
India (ASCI) and (viii) National E-Governance Services Ltd (NESL) and (ix) SIDBI
86.Why companies go for buyback and not for distribution of dividend?
In case of buyback, only long-term capital gains tax applies and to be paid by the investor. In case of dividend, companies have to
pay dividend distribution tax.
87. Which universal bank has been formed by conversion of an MFI toa bank? [Ans. Bandhan Bank. It became universal bank in
June 2015.]
88. What is Bharat 22 exchange traded fund (ETF)? The ETF called Bharat 22 Index that comprises of select companies mostly
central Public sector enterprises.
89.Which are the life insurance companies which have gone for Initial Public Offer? (ii) SBI Life (ii) HDFC Standard Life Insurance
Company (iii)
90.What is Public Finance Management System [PFMS]? PFMS is a Web-based app to monitor programme/financial
management. It tracks release of funds to implementing agencies, government borrowings to increase efficiency and reduce
interest cost.
91.What is INVEST INDIA ? It is a company, which acts as the foreign investment promotion arm of the government to promote
FDI /Foreign direct investment in India.
92.Which company has the highest Market Capitalisation? Reliance Industries (RIL)
93.Which scrip of India is now one among the top 10 large-cap global stocks? [RIL]
94.What is the India’s position Global Gender Gap Index? 108. Such ranking is done by published by World Economic Forum’. At
the top of the GGGI is Iceland.
95.What is DTAA? Double Tax Avoidance Agreements. Note: India joined a multilateral agreement, to enter into DTAAs with
about 93 nations, including Cyprus, Mauritius and Singapore. This will help combat tax avoidance by multinationals. This is done
under the auspices of the OECD/Organisation of Economic Cooperation and Development [OECD].
96.Which city has been declared as a World Heritage City by the UNESCO ? Ahmedabad
97.Which company is joint venture partner of SBI in SBI Life :BNP Paribas
98.Which is the first company to face bankruptcy proceedings under the Insolvency and Bankruptcy Code? Jyoti Structures.
99.Who is the chairperson of the Oversight Committee empowered by RBI to approve stressed- asset cases? Pradeep Kumar
100.Who is the first CEO of the Goods and Services Tax Network (GSTN) ? Prakash Kumar
101.Which day is celebrated as MMSE Day ? 27th June
102.What is maximum amount of award the Banking Ombudsman can pass ? Rs.20 lac
103.What is the annual investment limit per individual in Sovereign Gold Bonds? 4 Kg
104.What is Ayakar Setu? The e-initiative launched by CBDT to reduce physical interface between assesses and tax authorities so
as to reduce the chances of any tax harassment.
105.What is the name of the pension scheme launched by GoI and operated by LIC exclusively for senior citizens aged 60 years
and above? Pradhan Mantri Vaya Vandana Yojana
106.Which is the third Domestic Systemically Important Banks (D- SIBs) after State Bank of India and ICICI Bank? HDFC Bank
107.RBI has permitted a new category of entities to provide online payment facility for utility bills of customers. What is the name
of this system? Bharat Bill Payments System.
108.As per RBI’s directive what is the maximum period after which private sector banks/ foreign banks have to rotate Statutory
Auditors ? [ six years].
109.As per RBI guideline, what is the initial net worth requirement for firms offering prepaid payment instruments? [Rs 5 crore]
[Note: It was Rs 2 crore. As per RBI guideline the Net worth must go up to Rs 15 crore, within three financial years.]
110.Which bank has introduced DigiPoS, which is a payment solution? HDFC bank [ Note: With DigiPoS, a merchant can provide
12 digital payment modes like UPI, Bharat QR, SMS Pay, Tap & Pay, debit/ credit card swiping etc.]
111.Economic Advisory Council (EAC) to PM: It is meant to guide the PM on economic issues. Shri Bibek Debroy, is the Chairman
of the Council. The four other part-time members are Surjit Bhalla, Rathin Roy, Ashima Goyal and Ratan Watal.
112.Can the presiding officer condone the delay in filing appeal? Case Law: An appeal was preferred to the presiding officer of a
DRT by the aggrieved party against the order of the recovery officer. The same is filed beyond the prescribed period of 30 days. It
is decided that the since Tribunal is not a Court, Sec 5 of the Limitation Act does not apply and he cannot condone the delay to
admit the appeal.
Capital Market & Insurance Market
1. Name the five general insurance companies, where the Gol holds 100 % capital and has decided disinvest a part of this
capital? [New India Assurance, National Insurance, United Insurance, Oriental Insurance and reinsurance and General Insurance
Corporation
2. Which company has agreed to take over the life insurance business of Sahara India Life Insurance Co. Ltd, [ICICI Prudential
Life Insurance Co. Ltd. Sahara Life was the first fully Indian owned private life insurance company.]
3. What is IIB? [Insurance Information Bureau of India] [Note: Like Credit Information Companies IIB maintains data on
insurance intermediaries to help individual companies to make background check. Intermediaries include agents both individual
and corporates, TPA/Third Party Administrator in health insurance, investigators in claims, etc.
4. Name the Insurance Company whose Board has been superseded by IRDAI? [Sahara Life Insurance]
5.Which exchange has introduced trading in gold option contracts? [India International Exchange (India INX) in IFSC.]
6. Which life Insurance company is the first insurance company which went public by issuing IPO to raise Rs 8400 crore? [SBI
Life Insurance]
7. Expand InvITS: Infrastructure Investment Trusts [InvITs]
8. Expand REITs. Real Estate investment Trusts [REITs]
9. InvITS and REITs are regulated by whom? [SEBI]
[Note: InvITs and REITs are trusts/vehicles that allow investors to take exposure to an income-generating infrastructure project or real estate
property. No real estate company has launched a REIT so far. Only two InvITs have been launched. Equity-oriented REITs and InvITs, which
offer indicative yields, not fixed yields. Debt-oriented REITs and InvITS offer fixed returns to investors.
10. As of March 31, 2017 how many mutual funds/ AMCs/ Fund houses in India? [42]
11. Which is the first company to issue Masala Bonds? [HDFC]
12. What is the full form of IFSC? [International Financial Services Centre]
13. Which is the first IFSC in India? [GIFT City, Ahmedabad]
14. What is the full form of GIFT City? [Gujarat International Finance Tech City].
15. The Insurance Regulatory and Development Authority of India (IRDAI) has launched a Central
Database of all Insurance Sales Persons which is named as---------------------------[Envoy]
16. What is MSCI Stock Index? [It is an index of stocks/shares traded in 47 countries of the world.]
Banking, Credit and Deposit Market
1. Which bank has introduced India's first downloadable Digital Savings Account? [Kotak Mahindra Bank. The name of the
scheme is KOTAK 811, Customers can open an 811 account in five minutes from their phone by providing their Aadhaar and PAN
details. ]
2. What are the features of Kotak 811? (a) A zero-minimum balance requirement; (b) offers users a virtual debit card to shop
online; (c) Scan & Pay feature to make payments at merchant outlets.
3. Name banks which have been subjected to Prompt Corrective Action by RBI? [Ans. Bank of Maharashtra, Central Bank of India,
Dena Bank, 10B, IDBI Bank, United Bank of India, UCO Bank.]
4. Name the payment banks which have started operation? [First payment bank to be formed is - Airtel Payment Bank. Second-
India Post Payment Bank, Third- Paytm payment Bank, Fourth — Fino Payment Bank]
5. Name the bank, which recently signed a US$ 100 million loan agreement with Asian Development Bank to be guaranteed by
Gol to finance large solar rooftop systems on industrial and commercial buildings throughout India? [Punjab National Bank]
6. Banking Codes and Standards Board of India (BCSBI) has declared the code compliance rating by banks. Among public sector
banks, which bank has received High rating? [IDBI Bank]
11. Which bank revealed in its annual report that its estimate of bad loans was less by Rs 4,176 crore compared to that calculated
by RBI auditors? [Yes Bank]
You are today where your thoughts have brought you; you will be tomorrow where
your thoughts take you - James Allen
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Sanjay Kumar Trivedy

Date: 19.01.2018 Sanjay Kumar Trivedy

2 LOANS & ADVANCES 15-17

5 NPA & RECOVERY MANAGEMENT 23-28

7 DIGITAL BANKING 34-37

8 GENERAL BANKING 37-40

9 RECALLED & EXPECTED QUESTIONS : TEST YOURSELF 41-80

10. UYOURSELFQUESTIONS - 2015 80-94

(Please send Memory based questions on sktrivedycan@gmail.com)

A LAWS /ACT RELATED TO INDIAN BANKING 20-30 10-15 7-10 5-9

LEGAL ASPECTS/ BANKING LAW AND PRACTICE : RBI / BR Act, NI Act –

KNOW YOUR CUSTOMER (KYC) : KYC, KYC POLICY WITH LATEST

2. Loans & Advances

 PUBLIC CREDIT REGISTRY (PCR) FOR INDIA:

3. Priority Sector Advances

4. Basel & Risk Management

5. NPA & Recovery Management

Sr. No Physical POS infrastructure

LATEST BANKING & FINANCE –PART-1

LATEST BANKING & FINANCE –PART 2

LATEST BANKING & FINANCE : PART 3

LATEST BANKING & FINANCE : PART -4

Latest RBI POLICY BASED Questions ( 01.01.2016 to 31.03.2017)

SMALL BANK, PAYMENT BANK & UNIVERSAL BANK

ADVANCES : MCQ ON MCLR

NPA & RECOVERY MANAGEMENT

GENERAL BANKING - INCOME TAX RELATED QB

Sovereign Gold Bonds

MCQ on DIGITAL BANKING

10.Current affairs – banking, economy & finance

B.NEWS SUMMARY (JAN. 207 TO DEC. 2017)

BANKS/HQ/CEO/ TAG LINE

RECENT RBI COMMITTESS

Committee on Data Standardization March 2015 LP. Parthasarathi

Committee on Implementation of Countercyclical Capital July 2014 B. Mahapatra

Committee to Review Governance of Boards of Banks in India May 2014 P. J. Nayak

 Schemes launched by Union Govt.

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