Articles from General Knowledge Today

Q+A 4: Banking Exams Based Upon Interview

Questions
2011- 05- 23 01:05:00 GKToday
1. What is the main f unction of Competition Commission of India?
CCI is an independent body which become operat ional w.e.f . May 20,
2009 and is responsible f or invest igat ing t he mergers, market shares &
condit ions besides regulat ing f irms. CCI will ult imat ely replace t he
Monopolies and Rest rict ive Trade Pract ices Commission (MRTPC) of
India.
2. What is Lead Bank Scheme?
Lead bank scheme was int roduced around 40 years ago and recent ly it
was in t he news as a high level commit t ee chaired by RBI Deput y
Governor Usha Thorat was const it ut ed t o review and revit alize t his
scheme. The scheme aims at f acilit at ing credit delivery t o t he
f arf et ched areas of India. There are members of t he commit t ee f rom
NABARD and SIDBI. Thus t he scheme f ocuses upon f inancial inclusion.
The Opinion of t his commit t ee is t hat f ull f inancial inclusion is possible
only if it makes a f acilit y of opening of no f rill account s backed by ot her
specialized services.
3. What are Nostro & Vostro Accounts ?
A nost ro account is maint ained by an Indian Bank in t he f oreign count ries
f or a f acilit y of easy clearing of t heir t ransact ions. For inst ance, if t he
bank pays a demand drawn on it by it s correspondent bank, t here is no
delay because t he f oreign corresponded bank would already have
credit ed t he nost ro account of t he paying bank while issuing t he demand
draf t .
A vost ro account is maint ained by a f oreign bank in India wit h t heir
corresponding bank.
4. From which country India imports maximum?
From China. Import f rom China was $ 24.16 billion in 2008-09, which got
doubled in 3 years. This is 10.3 % of all t he import s of India.
5. What is Gold Standard?
A syst em of set t ing currency values whereby t he part icipat ing count ries
commit t o f ix t he prices of t heir domest ic currencies in t erms of a
specif ied amount of gold.
6. What is a Free Float Exchange Rate system?
An exchange rat e syst em charact erized by t he absence of government
int ervent ion. Also known as a clean f loat .
7. What are Special Drawing rights SDR?
SDR are new f orm of int ernat ional reserve asset s, creat ed by t he
Int ernat ional Monet ary Funds in 1967. The value of SDR is based on a
port f olio of widely used currencies and t hey are maint ained as
account ing ent ries and not as hard currency or physical asset s like Gold.
8. What are the requirements to open a New Branch in Rural Area?
Since 2006, RBI has approved t he opening of new branches only on t he
condit ion t hat at least half of such branches are opened in under-
banked areas as not if ied by t he regulat or.
The opening of branches by banks is governed by t he provisions of
Sect ion 23 of t he Banking Regulat ion Act , 1949. In t erms of t hese
provisions, banks cannot open a new place of business in India or abroad
or change ot herwise t han wit hin t he same cit y, t own or village, t he
locat ion of t he exist ing place of business wit hout t he prior approval of
t he Reserve Bank of India (RBI). Thus, it is mandat ory f or RRBs t o seek
prior approval/ license f rom Rural Planning and Credit Depart ment
(RPCD) of RBI bef ore opening of new branches/of f ices.
RRB should f ulf ill t he f ollowing condit ions t o become eligible f or opening
of new branch/es.
1. It should not have def ault ed in maint enance of SLR and CRR during
t he last t wo years.
2. The RRB should be making operat ional prof it s, it s net wort h should
show improvement 3. It s net NPA rat io should not exceed 8 per cent .
9. What is concept sustainable Development?
Meet ing t he needs of t he present wit hout compromising t he abilit y of
f ut ure generat ions t o meet t heir needs is called sust ainable
development . This concept is popular in present cont ext of
development .
10. What is the meaning of Financial Inclusion?
Today is is well recognized t hat large populat ion of India is out of reach
of t he f ormal banking services. Financial inclusion is t he concept which
has been f loat ed t o bring t he most of t he rural populat ion / area under
t he net of t he f inancial and banking services.
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