What does SWIFT code in banking stand for?
SWIFT is a global standard for secure international fund transfers and messaging between banks worldwide.
Which RBI initiative aims to provide a framework for facilitating cross-border payments in rupees?
RBI has been promoting the internationalization of the rupee to facilitate cross-border payments and reduce dependence on foreign currencies.
A customer's bank account becomes inoperative if no transaction occurs for how long?
As per RBI guidelines, a savings or current account becomes 'inoperative' if there is no transaction for 12 consecutive months.
Which of the following correctly defines 'Bancassurance'?
Bancassurance is the delivery and distribution of insurance products through banking channels to customers.
Which of the following is a negotiable instrument used in banking?
A Promissory Note is a negotiable instrument that represents a written promise to pay a specified sum to a creditor.
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What does KYC stand for in banking terminology?
KYC (Know Your Client) is a mandatory compliance process to verify customer identity and assess their financial profile.
What is the current statutory liquidity ratio (SLR) requirement set by RBI for banks?
As per RBI guidelines, banks must maintain a minimum SLR of 18% of their net demand and time liabilities.
Which RBI framework regulates digital lending operations in India?
RBI issued Guidelines on Digital Lending Operations in 2023 to regulate fintech lending platforms and digital lenders.
What is the minimum Capital Adequacy Ratio (CAR) required for Scheduled Commercial Banks under Basel III framework?
Under Basel III, the minimum CAR for Scheduled Commercial Banks is 11.5%, comprising 9.5% for common equity and 1% for additional tier-1 capital.
Which scheme provides crop insurance coverage to farmers in India?
Pradhan Mantri Fasal Bima Yojana (PMFBY) provides crop insurance protection to farmers against crop failure due to natural calamities.
What is the full form of NPA in banking context?
NPA (Non-Performing Asset) refers to a loan or advance where interest and principal payments are overdue for 90 days or more.
Which payment system allows instant transfer of funds between bank accounts?
RTGS enables real-time settlement of fund transfers, typically for high-value transactions above Rs. 2 lakhs.
What is the primary function of the Clearing Corporation of India Limited (CCIL)?
CCIL acts as a central counterparty (CCP) for trades in money markets and government securities, reducing counterparty risk.
Which RBI scheme targets financial inclusion through digital channels?
BHIM AEPS enables cardless, cashless transactions using Aadhaar biometrics, promoting financial inclusion in rural areas.
What is the current Cash Reserve Ratio (CRR) as per RBI's latest monetary policy stance (2024)?
The CRR is maintained at 4.5% of banks' Net Demand and Time Liabilities (NDTL) as per recent RBI policy guidelines.
What does CIBIL score measure in the Indian banking system?
CIBIL (Credit Information Bureau India Limited) score measures individual and corporate creditworthiness based on credit history.
Which Indian banks were recently merged under the Bank Consolidation Scheme?
India undertook significant bank consolidation in 2019: Dena and Vijaya banks merged into BoB; PNB merged with OBC and UBI.
What is the primary purpose of the Integrated Ombudsman Scheme 2021?
The Integrated Ombudsman Scheme 2021 provides a mechanism for customers to file complaints and seek redressal against banking services.
Under which regulation must banks maintain a minimum Tier 1 capital ratio?
Basel III framework mandates minimum Tier 1 capital ratio of 8.5% for banks' regulatory compliance.
What is the significance of ISIN in securities market operations?
ISIN (International Securities Identification Number) uniquely identifies individual securities across global markets.
