Banking part 2_ commercial banks

Question 1

Explain the shareholding pattern of foreign banks in India

Answer 1

qwe

Question 2

Does the foreign banking company have to register in India?

Answer 2

qwe

Question 3

Which committee recommended the introduction of on tap licences for foreign banks, opening the way for foreign banks in India?

Answer 3

Narasimham

Question 4

Geographical restrictions on Bank opening are applicable to which 2 categories of differential banks?

Answer 4

RRB, LAB

Question 5

Which differential banks has a limit on fund acceptance and how much

Answer 5

1 lakh payment banks

Question 6

When were RRBs introduced and on whose recommendations

Answer 6

76 Narasimham

Question 7

When was LAB introduced and on whose recommendations

Answer 7

96, Budget

Question 8

When was SFB introduced and on whose recommendations

Answer 8

2015, Nachiketa mor

Question 9

When was payment banks introduced and on whose recommendations

Answer 9

2015, Nachiketa mor

Question 10

Explain the difference between earlier and present ownership structure of RRB

Answer 10

qwe

Question 11

Explain how RRB is regulated

Answer 11

Immediate:- nabard overall: RBI because RRB are scbs hence regulated under bra 49

Question 12

The two main problems of RRBs

Answer 12

qwe

Question 13

What is the definition of a scheduled Bank

Answer 13

qwe

Question 14

What are the geographical restrictions on Local area Bank?

Answer 14

wqe

Question 15

Is LAB under 2nd schedule?

Answer 15

No

Question 16

Recent important transition move for LABs

Answer 16

qwe

Question 17

Explain the concept of wholesale banks

Answer 17

qwe

Question 18

Explain the main point/beneficiary behind payment banks

Answer 18

qwe

Question 19

Explain the history of payment banks and the two reasons Raghuram Rajan recommended them to converted to payment banks

Answer 19

qwe

Question 20

Main concept behind small finance banks

Answer 20

qwe

Question 21

The two entities who can be both sfb and pb

Answer 21

Nbfc and individuals

Question 22

Who can become sfb and pb

Answer 22

qwe

Question 23

Remember that sfb and pb are commercial banks. In light of that examines applicability of a) crr SLR b) availability of rbi windows c)Basel 3 applicability d) foreign shareholding e)RBI ombudsman

Answer 23

CRR, SLR Applicable to both

BASEL 3 applicable to both

RBI Windows(MSF, LAF) applicable to both

Foriegners shareholding:-49 automatic, 74 approoval etc

RBI ombudsman complaints

Question 24

Geographical restrictions on sfb and pb

Answer 24

qwe

Question 25

Are there any deposit restrictions on sfb?

Answer 25

No

Question 26

Explain deposit restrictions on payment banks

Answer 26

qwe

Question 27

Why are payment banks not able to make much profits

Answer 27

qwe

Question 28

Eligibility criteria for ucb to become sfb?

Answer 28

At least 5 years

Question 29

India post payment Bank. Ministry? Owner? Registered under which act, where are the pilot branches? Explain its customer reach? What is also sells apart from banking?

Answer 29

qwe

Question 30

What is the logic behind payment banks not being able to have nri deposits?

Answer 30

Money laundering

Question 31

Can Paytm/payment Banks be Sanjay Mohanty?

Answer 31

Yes. Remember your app

Question 32

Can sfb be Sanjay Mohanty?

Answer 32

Yes. Just like regular banks pb and sfb Mota moti

Question 33

Can sfb and pb deal in forex?

Answer 33

Yes. Just like regular banks pb and sfb Mota moti

Question 34

What sfbs cannot do? Explain in 2 points. Then expand to 5 sub points.

Answer 34

1) Can't grow too big. Can't loan to big corporates Can't open branches without rbi permission for first 5 years Cannot set up nbfc subsidiaries 2) cannot be a front for something else Other financial activities of promoter must not mingle with bank Cannot be a business correspondent of another bank

Question 35

What is the loaning requirement for sfbs? About the amount

Answer 35

50 percent of loans must be upto 25 lakh