Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Economy > Banking > Flashcards

Banking Flashcards

1
Q

Is FDI allowed in ARC?

A

Yes. 51%

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

What is Securitisation?

A

Converting documents that are basis for loans into security and sell into market

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What is stress test?

A

Simulation financial / economic stress - stock market plunge, rupee swing, deflation, growth crash.
Bank ability to deal with it.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Main pillars in Basel norms?

A

Risks
Role of Banking supervisors
Higher disclosure on Capital Adequacy, Asset Quality and Risk Mgt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

What is Basel I?

A

Minimum CAR. Focus entire Credit Risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What is Basel III?

A

Start 2013. Till 2019. Total CAR 11.5%. Earlier 9pc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is Basel II?

A

Start 2001. More risk and remedies

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q 
Small Finance Banks are -
registered under?
licensed under? 
governed under?
established as?
A

Registered under Companies Act.
Licensed under Banking Act
Governed under RBI Act by RBI
Public limited company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Is foreign investment allowed in Small Finance Bank

A

Yes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Do SFB keep CRR and SLR and do Prudential Norms apply to them?

A

Yes.

Yes.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Can SFB set up subsidiary to take NBFC functions?

A

No.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Do SFB have restrictions like RRB and LAB

A

No.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

SFB can be promoted by?

A

Individuals, Corporate, trusts.
Minimum paid up capital of 100crore.
Promoters must have 10 years experience in banking

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is condition on SFB for PSL and Unbanked area

A

Minimum 25% branches in unbank rural area
No restriction but beginning preference to unbank area clients
75% credit to PSL required. atleast 50% upto 25 Lakh

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

SFB were recommended by?

A

Raghuram Rajan Committee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Payment banks are estb under and licensed under

A

Companies act

BRA

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Minimum Deposit for Payments bank

A

1 lakh. Can have more provided that at end of day it is 1 Lakh

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q 
Can Payment Bank - 
FD
RD
Lending
Debit Card
Credit Card
ATM
BCs
DD
Utility Bills
NRI Deposits 
Net and Mobile Banking 
Mutual Funds 
Cross border remittance transactions 
Subsidiary for NBFC
A 
No
No
No
Yeas
No
Yes
Yes
Yes
Yes
No 
Yes
Yes
Yes 
No
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Minimum eligibility for Payment banks

A

100 crore paid up capital

25% branch in unbank areas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Are deposits under Payment Bank eligible for DICGC

A

Yes. Max 1 lakh

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Condition on Payment Banks wrt SCB

A

Maximum 25% in Current and Time Deposits with other SCBs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Do Payment Banks have to comply with CRR and SLR

A

Yes. Have to keep CRR + 75% securities in T-Bills having one year maturity and are eligible under SLR

Operational risk high so CRR is more than other Banks

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Payment Banks recommended by

A

Nachiket Mor Committee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

India post payment bank recommended by

A

TSR Subramaniam Committee

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Govt role in India post payment bank

A

it is under Dept of Post

100% govt equity in IPPB

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

Nature of IPPB

A

Public limited company

90% in rural areas

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

Mudra Bank is estb under?

A

Companies Act

Later as NBFC under RBI

28
Q

Mudra bank is subsidiary of?

A

It is wholly owned subsidiary of SIDBI

29
Q

Mudra bank operate thru?

A

MFI FI SHG Credit coop societies

30
Q

Mudra banks loan to?

A

NBFC and MFI - loan to final needy

Priorty to underprivileged

31
Q

Credit guarantee in Mudra?

A

Yes. Under NCGTC for Credit guarantee

32
Q

What are Development banks and give some examples

A

they are financial institutions giving long term credit to agri and industries
Egs IFCI IDBI ICIC NABARD SIDBI EXIM NHB

33
Q

Difference b/w Commercial Banks and Development Banks

A

Commercial banks - short term credit

Development Banks - long term credit

34
Q

SR Khan Committee

A

Transfer DFIs to universal committee

35
Q

First Development Banks

A

IFCI in 1948 - IFCI act

36
Q

What are cooperative banks

A

specialize in agri and housing. earlier non agri only

Earlier mostly small buz, now wider

37
Q

Cooperative banks get help from>

A

Fianncial and other help from NABARD RBI SG CG

38
Q

Cooperative bank funds from

A

Money market + capital Market

39
Q

Cooperative banks loan?

A

Short term + long term

LDB only long term

40
Q

Do cooperative banks need CRR and SLR

A

Yes

41
Q

Types of cooperative banks

A

Schedule

Non Schedule

42
Q

What are shadow banks

A

FI function like banks - raise deposits, float equity, bonds
But not covered under strict bank rules
Lax conduct - led to sub prime crisis

43
Q

What is Bank Run

A

People not confident of bank capacity to honour commitment
Fear insolvency
Large number customers want withdraw deposit at same time

44
Q

What is countercyclical buffer?

A

Part of Basel III
Keep aside capital that can be used later when cycle turns down
Due to slowdown or recession and loans turn Bad

45
Q

What is Bank of international settlements

A

Banks for central Banks
International Financial institution owned by CBs
international monetary and financial cooperation

46
Q

What is Hair cut

A

Bank parlance. asset value reduced as it cant be fully realised
Types -

Write down - cant recover fully
Write off - cant recover at all

47
Q

WHat is Twin Balance sheet challenge

A

Balance sheet of borrowing and lending companies both under pressure

48
Q

What are Public sector asset reconstruction agency

A

Proposed in ES 2017
Raise money by govt bonds to buy big bad loans of PSB
Kind of bad bank

49
Q

What was PK Nayak Committee

A 
Set up by RBI for Bank governance issue 
Recommended - 
Govt decrease PSB holding 
Board apt professionalise 
Fix 5 year Ch and MD and 3 year for whole term directors
50
Q

What is Indradhanush Scheme

A 
Revive NPA burdened PSB started in 2017 
Apt professionals 
bank Board Bureau 
Capitalise banks 
Non govt interference 
Accountability framework 
Governance reforms 
Gyan sangam
51
Q

What is bank board bureau

A

Autonomous board
recommed Apt of PSB FI heads
recommend on PSB consolidation

52
Q

What do you understand by Differentiated banking

A

Diff types of bank - diff aims, clients, mode of working

53
Q

Brown label ATM

A

3rd party
non banking
logo of bank

54
Q

White label ATM

A

Third party

not logo of bank but logo of third party

55
Q

What are holding companies

A

invest in other comapnies aka subsidiaries

not involve in day to functions

56
Q

What are types of holding company

A

pure holding company - non operative, solely investing, hold voting share, income from dividend

General / operational holding company - income from selling GnS

Pyramid holding company - own controlling interest is subsidiaries with less invested capital

57
Q

Urjit patel committee recommednations

A

CPI C be used for inflation target
4=-2
MP committee
fix fiscal deficit to gdp by dec to 3.0%

58
Q

WHat was nachiket mor committee

A 
set up by RBI for financial inclusion 
universal bank account
licensing, lower barriers
risk based supervision
reorient NABARD SIDBI NHB
59
Q

Basel norm india

A

started 1992

60
Q

Disclosed reserve

A

total liquid cash and SLR of bank that may be used at a time
part of core capital i.e. Tier I

61
Q

Undisclosed reserves

A

unpublished hidden reservese
not appear on public available document but are assets
part of core cpaital that is Tier 2

62
Q

What is stock of money

A

2nd WG on MS

M1 M2 M3 M4

63
Q

What are Narsimhan I committee recommendations

A

direct investment
dec CRR
PSL phase out, redefine
ARC set up to tackle NPA
IR structure - market force, RBI role simiplify
reorganise bank structure - PSB reduce, Dual control of RBI and MoF end

64
Q

Narsimhan committee II recommendations?

A 
Three tier bank strucutre 
higher norms of CRAR 
PSB budget recapitalise 
legal framework for loan recovery - SARGESI
net NPA below 5%
Depoliticize Bank boards
65
Q

New pvt banks opened in india when

A

1993

66
Q

What are provision of SARFESI act

A 
crackdown wilful defaulter 
power to bank to issue notice
take possession of security 
take over management 
apt person to mng
sell security to ARC set on lines of USA

Economy (8 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions