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Part 2 Flashcards

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1
Q

How often must the Central Board meet according to the rules?

A

The Central Board must meet at least six times each year, with at least one meeting per quarter.

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2
Q

Who has the authority to convene meetings of the Central Board?

A

Meetings of the Central Board are convened by the Governor. However, any four Directors can also require the Governor to convene a meeting at any time.

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3
Q

What happens if the Governor cannot attend a Central Board meeting?

A

If the Governor is unable to attend, a Deputy Governor, who has been authorized by the Governor under the provisions of subsection (3) of section 8, will preside over the meeting.

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4
Q

What voting rights does the presiding officer have at Central Board meetings?

A

The presiding officer (either the Governor or the designated Deputy Governor) has the right to a second or casting vote in the event of an equality of votes.

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5
Q

Can the Central Board meet more than six times a year?

A

Yes, the Central Board can meet more than six times a year if any four Directors require the Governor to convene a meeting or if the Governor decides to call additional meetings.

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6
Q

Who can deposit money without interest into the Bank?

A

The Central Government, State Governments, local authorities, banks, and any other persons can deposit money without interest into the Bank.

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7
Q

What is the purpose of the Standing Deposit Facility Scheme?

A

The purpose of the Standing Deposit Facility Scheme is for liquidity management, allowing the Bank to accept money as deposits from banks or any other person, which is repayable with interest.

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8
Q

Who approves the terms under which money can be accepted under the Standing Deposit Facility Scheme?

A

The terms under which money can be accepted under the Standing Deposit Facility Scheme are approved by the Central Board of the Bank.

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9
Q

Can any person deposit money under the Standing Deposit Facility Scheme?

A

Yes, any person, including banks, can deposit money under the Standing Deposit Facility Scheme, where the deposit is repayable with interest.

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10
Q

Commercial and Trade Bills: duration

A

Maturing within: 180 days for export-related transactions. 90 days for all other transactions, excluding days of grace.

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11
Q

Agricultural Bills: duration

A

Maturing within 15 months from purchase or rediscount, excluding days of grace.

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12
Q

Cottage and Small-Scale Industries: duration

A

Must mature within 12 months, with the principal and interest fully guaranteed by the State Government.

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13
Q

Government Securities: duration

A

Maturing within 90 days, excluding days of grace.

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14
Q

International Bills: duration

A

Maturing within: 180 days for export-related transactions. 90 days for all other transactions, excluding days of grace.

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15
Q

Commercial and Trade Bills: signature

A

With at least two good signatures, one from a scheduled bank, State co-operative bank, or an approved financial institution.

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16
Q

Agricultural Bills: signature

A

With at least two good signatures, one from a scheduled bank, State co-operative bank, or an approved financial institution.

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17
Q

Cottage and Small-Scale Industries: signature

A

Require two or more signatures, one from a State Co-operative bank, State financial corporation, or approved financial institution.

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18
Q

Government Securities: signature

A

Bearing the signature of a scheduled bank.

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19
Q

The Bank can purchase and sell foreign exchange from/to

A

scheduled banks.

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20
Q

International Bills: signature

A

These transactions can only be conducted with a scheduled bank or a State co-operative bank within India.

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21
Q

Loans for Export Activities: to any scheduled bank or State co-operative bank against promissory notes, repayable either

A

on demand or within 180 days.

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22
Q

Loans for Commercial or Agricultural Activities: to scheduled banks or State co-operative banks, repayable on _____________ secured by promissory notes.

A

on demand or within 180 days, secured by promissory notes.

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23
Q

loans and advances to Local authorities, Scheduled banks, Co-operative banks (referred to as State co-operative banks) and State Financial Corporations tenure

A

not exceeding ninety days, with an exception for export-related transactions where the period can extend to one hundred and eighty days.

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24
Q

State Financial Corporations in India can receive loans and advances. These loans and advances are repayable at

A

the expiry of fixed periods not exceeding eighteen months from the date they are issued.

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25
Q

There is a stipulation that the State Financial Corporation must obtain prior approval from____________ for any borrowing.

A

the State Government

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26
Q

There’s a ceiling on the amount of loans and advances that can be granted to a State Financial Corporation under this provision; the total amount should not exceed

A

twice the paid-up share capital of the corporation at any time.

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27
Q

National Rural Credit (Long Term Operations) Fund: Established under:

A

Section 42 of the NABARD Act, 1981.

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28
Q

National Rural Credit (Long Term Operations) Fund: purpose

A

To provide financial assistance for long-term investments in agriculture and allied activities in rural areas.

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29
Q

National Rural Credit (Stabilisation) Fund: Established under:

A

Section 43 of the NABARD Act, 1981.

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30
Q

National Rural Credit (Stabilisation) Fund: Purpose

A

To stabilize the flow of credit in rural areas, particularly during times of economic instability or natural calamities.

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31
Q

loans and advances to the Industrial Finance Corporation of India (IFCI) tenure of short term and medium term

A

90 days and 18 months

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32
Q

Loans and Advances to Notified Financial Institutions: tenure of short term and medium term

A

90 days and 18 months

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33
Q

Loans and Advances to Notified Financial Institutions: There’s a cap on the medium-term loans provided under clause (b). The total amount of these loans and advances to any single financial institution must not exceed _________________at any given time.

A

60% of its paid-up share capital

34
Q

Loans and Advances to the Unit Trust of India: tenure

A

90 days and 18 months

35
Q

Loans and Advances to Warehousing Corporations: tenure

A

90 days and 18 months

36
Q

Restrictions on Loan Amounts: Central Warehousing Corporation: The total amount of medium-term loans under clause (b) must not exceed _______________

A

three crores of rupees at any time.

37
Q

Restrictions on Loan Amounts: State Warehousing Corporation : The total amount of medium-term loans under clause (b) must not exceed

A

fifty lakhs of rupees at any time.

38
Q

Loans and Advances: To the National Bank for Agriculture and Rural Development (NABARD) tenure

A

18 months

39
Q

Loans and Advances to the Small Industries Bank: tenure

A

90 days and five years

40
Q

Loans and Advances to the Exim Bank:

A

90 days and five years

41
Q

Loans and Advances to the Reconstruction Bank:

A

90 days and five years

42
Q

Loans and Advances to the National Bank for Financing Infrastructure and Development or other development financial institutions:

A

90 days and five years

43
Q

What is the repayment term for Ways and Means Advances

A

three months

44
Q

________________________ are eligible to receive WMA from the RBI.

A

Both the Central Government and State Governments

45
Q

The Reserve Bank of India (RBI) is allowed to keep deposits with the

A

State Bank of India (SBI).

46
Q

repo and reverse repo in which section

A

17.12.AB

47
Q

That the amount of its loans or advances in foreign currency outstanding at any time will be

A

no less than the outstanding amount of the loans or advances it has received from the Bank.

48
Q

RBI is allowed to borrow money for a period not exceeding

A

one month

49
Q

Borrowing of RBI is restricted to

A

scheduled banks only

50
Q

The total amount borrowed from persons in India must not exceed the

A

Bank’s capital at any given time.

51
Q

Borrowing of RBI outside India is limited to

A

rincipal currency authority in their respective countries

52
Q

These loans or advances which are at usual limitations in section 17 are provided under section 18A of RBI Act, are to be repayable either on demand or on the expiry of a fixed period not exceeding

A

ninety days,

53
Q

Effect of agreements made between the Bank and certain States before

A

1st November 1956.

54
Q

Nothing contained in sections—————— shall apply to the bank notes in digital form by the Bank.]

A

24, 25, 27, 28 and 39

55
Q

Bank notes can be issued in the following denominational values:

A

2, 5, 10, 20, 50, 100, 500, 1,000, 5,000, and 10,000 rupees.

56
Q

Additional or alternative denominations can be specified by the Central Government, based on recommendations from the Central Board, with a maximum limit of

A

10,000 rupees.

57
Q

Despite what is stated in section 26, bank notes with the denominations of 500 rupees, 1,000 rupees, or 10,000 rupees that were issued before ——————, are not considered legal tender for the amount they express.

A

January 13, 1946

58
Q

Despite what is stated in section 26, bank notes with the denominations of——————— that were issued before January 13, 1946, are not considered legal tender for the amount they express.

A

500 rupees, 1,000 rupees, or 10,000 rupees

59
Q

The Bank is allowed to issue bank notes specifically for circulation outside India. These are called special bank notes and can be of the denominations:

A

5 rupees, 10 rupees, and 100 rupees.

60
Q

The Central Government can issue special one rupee notes for circulation outside India, disregarding other provisions in this Act or

A

Currency Ordinance, 1940.

61
Q

For all purposes of the Act except section 39, special one rupee notes are included in the definition of

A

rupee coin

62
Q

The Bank is exempt from paying stamp duty under the——————-, for the bank notes that it issues.

A

Indian Stamp Act, 1899

63
Q

Upon taking action to supersede the Central Board, the Central Government must:
Present a comprehensive report to Parliament detailing the reasons for the action and the steps taken.
This report must be laid before Parliament within —————— of issuing the notification to supersede the Board.

A

three months

64
Q

The Central Government can authorize —————- to issue electoral bonds, which are bonds specifically for electoral funding as per a scheme notified by the Central Government.

A

scheduled banks

65
Q

Under the———————- , no one in India except the Bank or the Central Government (as authorized by this Act) can issue promissory notes payable to bearer.

A

Negotiable Instruments Act, 1881

66
Q

The assets must include gold coin, gold bullion, foreign securities, rupee coin, and rupee securities, ensuring the total value is at least equal to

A

liabilities of the Issue Department.

67
Q

The combined value of gold coins, gold bullion, and foreign securities must not be less than

A

200 crores of rupees.

68
Q

The value of gold coins and gold bullion alone must not be less than

A

115 crores of rupees.

69
Q

Assets of RBI - Promissory notes from the National Bank for loans or advances under

A

clause (4E) of section 17.

70
Q

RBI ASSETS- Eligible bills of exchange and promissory notes payable in India, as per various clauses

A

section 17 and clause (1) of section 18.

71
Q

Gold coin and gold bullion are valued at a price not exceeding the

A

current international market price

72
Q

Rupee coin is valued at its

A

face value.

73
Q

Securities are valued at rates not exceeding the

A

current market rates.

74
Q

Gold Holding Requirements:
At least————— of the gold (coin and bullion) held as assets must be in India.

A

17/20ths

75
Q

Foreign securities held as assets can include: Securities payable in the currency of IMF member countries:
Balances or securities with the principal currency authority of that country, or with international financial institutions like the IMF, World Bank, IADB, etc., repayable within

A

10 years.

76
Q

Foreign securities held as assets can include:

Balances or securities with other approved banking or financial institutions, also repayable within

A

10 years.

77
Q

Foreign Securities as Assets: Short-term bills of exchange:
Must have at least two good signatures, drawn on and payable in the relevant foreign country, with a maturity not exceeding

A

g 90 days.

78
Q

Foreign Securities as Assets: Foreign Government securities:
Must mature within

A

10 years.

79
Q

Assets of RBI include any drawing rights representing a liability of the

A

IMF

80
Q

The liabilities are defined as the total amount of:

A

Currency notes, bank notes in circulation of the Government of India

81
Q

Temporary Reduction in Foreign Securities: Can initially last for up to

A

six months.

82
Q

Temporary Reduction in Foreign Securities: Can be extended with further Central Government sanction, in periods not exceeding

A

three months at a time.

rbi act (5 decks)

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