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C7-2 Flashcards

1
Q

Under the revised guidelines, the entire investment portfolio of the banks should be classified under three categories,

A

viz, Held to Maturity (HTM), Available for Sale (AFS) and Fair Value through Profit and Loss (FVTPL).

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2
Q

Held for Trading (HFT) shall be a separate investment sub-category within

A

FVTPL.

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3
Q

________________ reflect a paradigm shift in the regulatory approach towards resolution of stressed assets in India.

A

issuance of the Prudential Framework for Resolution of Stressed Assets on June 7, 2019

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4
Q

The banks have been mandated to link all new floating rate personal or retail loans and floating rate loans extended to MSMEs to external benchmarks such as

A

Repo Rate, Government of India 3-Months and 6-Months Treasury Bill yields published by Financial Benchmarks India Private Ltd (FBIL), or any other benchmark market interest rate published by FBIL.

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5
Q

Prevention of Money Laundering (PML) Act

A

Prevention of Money Laundering (PML) Act, 2002

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6
Q

Prevention of Money Laundering (Maintenance of Records) Rules,

A

Prevention of Money Laundering (Maintenance of Records) Rules, 2005

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7
Q

the ceiling in respect of the fixed remuneration of non executive directors was increased to _____________ per annum in February 2024.

A

₹30 lakh

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8
Q

Banks have also been advised to ensure presence of at least ____________ WTDs on the Board, including the MD&CEO

A

2

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9
Q

Banks are now required to make disclosures in their annual report, among others, about

A

capital adequacy, asset quality, liquidity, earnings and penalties, if any, imposed on them by the regulator, etc.

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10
Q

_____________- are covered under the Deposit Insurance Scheme

A

All commercial banks, including the branches of foreign banks functioning in India, local area banks and regional rural banks

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11
Q

Under the Scheme the insurance cover is limited to _____________ per depositor for deposits held in ‘the same capacity and in the same right’ at all the branches of the bank taken together.

A

₹5,00,000/-

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12
Q

RBI applies to the Central Government for compulsory amalgamation/ reconstruction under

A

Section 45 of the Banking Regulation Act, 1949

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13
Q

After the amendment to Section _____________ , in the year 2020, the decision for amalgamation can be made during the period of moratorium or at any other time.

A

Section 45(4) of the B.R.Act, 1949

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14
Q

Draft Scheme on reconstruction/ compulsory amalgamation, as per_______________ is placed on RBI website for comments/ objections from the stakeholders.

A

Section 45(6) of the BR Act

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15
Q

RBI may cancel the licence of a banking company under the provisions of

A

Section 22(4) of the BR Act

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16
Q

RBI grant licence under Sub-sections

A

Sub-sections (1) or (3) or (3A) of Section 22 of the BR Act,

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17
Q

The banking company aggrieved by the decision of the RBI cancelling the banking licence under Section 22(4) of the BR Act, may, within _____________ days from the date on which such decision is communicated to it, appeal to the Central Government.

A

thirty

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18
Q

business of banking defined under

A

Section 5 (b) of BR act

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19
Q

_______________ lists down the businesses which a banking company can undertake in addition to the business of banking

A

Section 6(1) of the Banking Regulation Act

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20
Q

The five AIFIs

A

Exim bank, National Bank for Agriculture and Rural Development (NABARD), the National Bank for Financing Infrastructure and Development (NaBFID), National Housing Bank (NHB) and Small Industries Development Bank of India (SIDBI) are under regulation and supervision of the Reserve Bank.

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21
Q

Credit Information Companies (Regulation) Act

A

Credit Information Companies (Regulation) Act, 2005

22
Q

CIR)

A

credit information reports

23
Q

FFCR)

A

Free Full Credit Report

24
Q

RBI has directed CICs to furnish Free Full Credit Report (FFCR) which includes credit score to individual borrowers ___________ in a calendar year.

A

once

25
Q

AIF

A

Alternative Investment Funds

26
Q

REs were mandated to liquidate their existing investments in AIFs within a stipulated period of _______________- days, if AIF scheme had invested or subsequently invests in RE’s debtor company, failing which REs shall make _______________ provision for their investments in that particular scheme; and

A

30, full

27
Q

REs to release all the original movable/ immovable property documents, including removal of charges registered with any registry, within ________ days after full repayment/ settlement of the loan account.

A

30

28
Q

To strengthen customer service rendered by CICs and CIs, a compensation framework has been prescribed for non-adherence to the timelines ____________ for updation/rectification of credit information by them.

A

(30 days)

29
Q

CICs, conduct root cause analysis (RCA) of customer grievances on a _________ basis

A

half-yearly

30
Q

CICs have been advised to ingest the credit information data into their database within __________ days of receipt from CIs

A

five

31
Q

LSP)

A

lending service provider

32
Q

DLA)

A

digital lending app

33
Q

DLG)

A

Default Loss Guarantee

34
Q

FLDG)

A

First Loss Default Guarantee

35
Q

REs shall ensure that total amount of DLG cover on any such portfolio shall not exceed

A

five per cent of the amount of that loan portfolio and the same can be offered only in the form of cash, fixed deposit or bank guarantee

36
Q

Further, REs shall place a review report before its Board of Directors within _________ months of the end of the financial year, regarding green financing

A

three

37
Q

For early detection of wilful default, review of all NPA accounts for identification of wilful default within ________- months of their classification as NPA has been prescribed.

A

six (6)

38
Q

If a wilful defaulter’s name is removed from the list of defaulters (which involves settling all dues or proving the default was not wilful), they must wait __________ before they can apply for new credit facilities.

A

one year

39
Q

Even after being removed from the wilful defaulter list, there’s a __________ restriction on getting credit facilities for starting new ventures.

A

five-year

40
Q

Lenders must report details of wilful defaulters to Credit Information Companies (CICs) ___________-

A

every month.

41
Q

large defaulters (those with loans of ___________

A

₹1 crore or more

42
Q

In order to ensure that credit information reports provided by CICs reflect a more recent information, the frequency of reporting of credit information by CIs to CICs has been increased from

A

monthly to fortnightly intervals or at such shorter intervals as mutually agreed upon between the CI and the CIC, with effect from January 1, 2025.

43
Q

Time window_________________ to call customers for telemarketing, providing copy of signed agreement, enabling digital consent for credit card application.

A

(10:00 hrs to 19:00 hrs)

44
Q

Closure of credit card - timeline and penalty beyond

A

Timeline of seven working days and ₹500 per calendar day penalty for any delay, initiation of closure of unused credit card account (more than a year) with intimation.

45
Q

If you make a transaction that exceeds your credit limit, the card issuer can, with your explicit consent, adjust this transaction by adding up to____________ to your credit limit temporarily.

A

1% of your credit limit or ₹5000 (whichever is lower)

46
Q

activation of credit card through OTP based consent in case a card remains inactive for more than ____________ days from the date of issuance

A

30

47
Q

APR),

A

annual percentage rate

48
Q

KFS for loans disbursed from _________

A

October 1, 2024,

49
Q

Multi-State Co-operative Societies (Amendment) Act

A

Multi-State Co-operative Societies (Amendment) Act, 2023

50
Q

IRRBB)

A

Interest Rate Risk in Banking Book

51
Q

NII

A

net interest income

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