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Banking and Economy Current Affairs Quiz - June 2019

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1. Asian Development Bank (ADB) approved a project worth INR 1650 crores to develop infrastructure in seven districts of ________________ - Khowai, Ambassa, Dharmnagar, Kailashahar, Udaipur, Bishramganj and Belonia.

Tripura
Assam
Meghalaya
Mizoram
None of These


2. India signed ______________________ loan with World Bank for Tamil Nadu Health System Reform Programme, aimed at improving quality of health care, reduce burden of non-communicable diseases (NCDs), and fill equity gaps in reproductive and child health services in Tamil Nadu.

$187 million
$387 million
$287 million
$487 million
None of These


3. MOU signed between Ministry of ______________ and Securities and Exchange Board of India (SEBI) for data exchange, amid increasing need for surveillance in context of Corporate Frauds affecting important sectors of economy. It will enable automated sharing of related information among SEBI and MCA.

Home Affairs
External Affairs
Fiannce
Corporate Affairs
None of These


4. According to National Council of Applied Economic Research (NCAER), _________________ (BCI) of India slipped 9.1 % in fourth quarter of 2018-19.Political Confidence Index (PCI) of businesses increased by 12.1% on a quarterly basis in Q4.

  1. BCI is an indicator of business sentiments across Indian industry segments, compiled by NCAER on the basis of four components.
Business convergence index
Business competence index
Business coherence index
Business combined index
Business confidence index


5. As per Crisil report, overall non-performing assets (NPAs) declined to ___________________________ in March 2019, compared to 11.5% in March 2018. The decline is supported by RBI’s asset quality review and also with enactment of the bankruptcy law for resolving cases.

8.3%
7.3%
9.3 %
6.3%
None of These


6. As per Data released by Controller General of Accounts (CGA), Government met fiscal deficit target of _________________ for FY 2018-19, with Fiscal deficit being 3.39 %. It was met through reduction in government spending, which also contributed to GDP growth slowing to 5.8% in Q4 of FY19.

  1. For FY19, the fiscal deficit stood at Rs 6.45 trillion(Lakh crore), slightly above than the revised estimate of Rs 6.34 trillion.
  2. Expenditure of government was Rs 23.11 lakh crores, which is 1.5 lakh crores INR less than revised budget size of 24.57 lakh crores.
  3. Revenue deficit for FY19 was 108.2% of full year target, compared to 102% for FY18.
  4. Revenue for FY19 was 16.66 trillion, about Rs 1.57 trillion less than revised estimates of Rs 18.23 trillion. Net tax revenue for FY19 was at 88.7% of the revised full year target, compared to 97.9% for the same period last year.
3.4% 
1.4% 
3.8% 
5.4% 
None of These


7. As per RBI report, bank frauds have been reached to INR 71,500 crores in 2018-19 with over 6,800 cases. In 2017-18, 5,916 cases were reported by banks which involved Rs 41,167.03 crore. In last 11 fiscal years, 53334 cases of fraud were reported by banks involving amount of INR 2.05 lakh crores.

  1. _____________ Reported 6811 Frauds, most for any Bank , involving INR 5033 crores. SBI was 2nd with 6793 fraud cases involving Rs 23,734 crores.
Axis Bank
ICICI Bank
Kotak Mahindra Bank
HDFC Bank
None of These


8. Asian Development Bank (ADB) and ____________________ (MIGA), political risk insurance arm of World Bank Group, agreed to expand Development Finance in Asia and Pacific to increase flow of private sector investment.

Multilateral Investment Guarantee Agency
Multinational Investment Guarantee Agency
Mutual Investment Guarantee Agency
Multilateral International Guarantee Agency
None of These


9. ________________ and Edelweiss Group's ECL Finance partnered to explore co-lending opportunities to MSME, self-employed and priority sector groups.

Bank of Baroda
PNB
SBI
HDFC Bank
None of These


10. Cabinet Committee on Economic Affairs approved strategic disinvestment of ____________ & its five subsidiaries.

BHEL
GAIL
SAIL
Air India
None of These


11. Competition Commission of India (CCI) approved merger of Indiabulls Housing Finance and ___________________, in a share swap deal. After merger, Indiabulls Housing Finance will get Long sought entry into Banking Space.

Federal Bank
Karur Vyasa Bank
RBL Bank
Lakshmi Vilas Bank
None of These


12. Confederation of Indian Industry (CII) launched a _________________________ (FPI) to assess state and central budgets. It incorporates qualitative assessments of revenue expenditure, capital expenditure, revenues, fiscal prudence and level of public debt arrive at a more holistic picture of fiscal performance than fiscal deficit to GDP ratio. FPI has been constructed using United Nations Development Programme’s (UNDP) Human Development Index methodology.

Fuel Performance Index
Fiscal Performance Index
Fiscal Purity Index
Fuel Purity Index
None of These


13. Department of Telecom (DoT) approved levying of penalty on Bharti Airtel and Vodafone Idea for denial of interconnection to Reliance Jio Infocomm, when Jio entered market in 2016.

  1. DoT asked Telecom Regulatory authority of India (TRAI) to review penalty amount worth INR __________________crores, considering financial stress in telecom sector.
  2. In October 2016, TRAI recommended fine for Airtel and Vodafone amounting to INR 1050 crore each and for Idea it was 950 crores. New Merged Entity Vodafone-Idea will have to bear combined burden.
3550
4050
1050
2050
3050


14. Economic Advisory Council to the Prime Minister (Headed by _________________) released note titled ‘GDP estimation in India- Perspectives and Facts’. It provides clear rationale for India’s switch to an improved GDP estimation methodology in January 2015.

  1. New methodology uses 2011-12 as base year and includes two major improvements - Incorporation of MCA 21 database and Incorporation of Recommendations of System of National Accounts (SNA) 2008.
  2. The note Rejects Points noted in recently published paper titled India’s GDP Mis-estimation: Likelihood, Magnitudes, Mechanisms, and Implications’ by Arvind Subramanian, which said that India’s GDP was over-estimated post 2011-12.
  3. Note says that India’s GDP estimation methodology is not a perfect exercise and Ministry of Statistics and Program Implementation is working to improve its accuracy. However, as of now, India’s GDP estimation methodology is at par with its global standing.
Bibek Debroy
Arvind Mayaram
Raghuram G Rajan
Sekhar Basu
None of These


15. Export-Import Bank of India (Exim Bank) will provide Line of Credit (LoC) worth $150 million to Ghana and _________________ to Mozambique for agricultural and railway projects.

$125 million
$25 million
$195 million
$95 million
None of These


16. Fincare Small Finance Bank and Kookmin Bank included in second schedule of Reserve Bank of India Act ____________________. Both banks can now broad-base its lines of funding and liquidity facilities.

1924
1944
1934
1954
None of These


17. Fitch Ratings certified long-term ________________ (IDRs) to six banks - State Bank of India(SBI), Bank of Baroda(New Zealand), Punjab National Bank(PNB), Bank of Baroda (BOB), Canara Bank and Bank of India (BOI), with ‘BBB-‘ a stable outlook.

  1. Rating of IDBI Bank’s long-term IDR was certified at ‘BB+’.
  2. 5 banks were also given the Viability Ratings (VR). BOB’s VR is maintained at Rating Watch Negative (RWN) and VR of Canara Bank was downgraded to ‘bb-‘ from ‘bb’ as bank’s core capital position was not compared with its weak asset quality and earnings.
Issuer Debt Ratings
Issuer Default Ratings
Internal Default Ratings
Internal Debt Ratings
None of These


18. GST collectiong in May 2019 were INR 100289 crores (CGST - 17811 crore, SGST - 24462 crore, IGST - 49891 crore and Cess - 8125 crores). Its the third consecutive month of GST revenue being over 1 Lakh Crores INR. In _________________ 2019, It was 113865 crores, highest ever monthly receipts ever in GST regime.

March
April
February
January
None of These


19. Government decided to reduce rate of contribution under ESI Act from 6.5% to _______________________ (employers’ contribution being reduced from 4.75% to 3.25% and employees’ contribution beingreducedfrom 1.75% to 0.75%).

  1. Reduced rates will be effective from July 2019, to benefit 3.6 crore employees and 12.85 lakh employers.
  2. Reduced rate of contribution will bring substantial relief to workers and will facilitate further enrollment of workers under ESI scheme and bring more workforce into formal sector.
  3. Also, reduction in contribution of employers will reduce financial liability of employers, enhancing Ease of Doing Business.
  4. Earlier, Government enhanced Wage ceiling from INR 15000 to 21000 per month from July 2017, to expand Social Security Coverage to more and more people.
  5. ESI Act 1948 provides for medical, cash, maternity, disability and dependent benefits to Insured Persons under Act, administered by Employees’ State Insurance Corporation (ESIC).
3.5%
4.5%
3%
4%
None of These


20. Govt. reduced interest rates for small savings schemes by _______________ basis points for July-September quarter of FY 2019-20. Updated Rates of Interest -

  1. PPF and National Savings Certificate (NSC) will yield 7.9% interest (earlier 8%). KVP will fetch 7.6% with maturity of 113 months (as compared with earlier 7.7% with maturity of 112 months).
  2. Girl child savings scheme Sukanya Samriddhi will fetch a lower return of 8.4% (earlier 8.5%). Term deposits of 1-3 years will fetch interest rate of 6.9% (paid quarterly), while 5 year Deposit will get 7.7%.
10
20
30
40
None of These


21. HDFC sold over 4.22% stake in housing finance subsidiary Gruh Finance Ltd (Gruh), which is proposed to be amalgamated with _________________ for INR 899.43 crores.

Bandhan Bank
ICICI Bank
HDFC Bank
Axis Bank
None of These


22. Health insurer ______________partnered with fintech platform MobiKwik to promote Micro health insurance products for MobiKwik customers. Also, IDBI Bank and Health Insurer _________________signed Bancassurance corporate agency agreement. Under this, Bank will Promote Insurer's products to its 2 crore customers. IDBI bank also signed similar bancassurance agreement with Tata AIG General Insurance Company.

Star Health
Max Bupa
Apollo Health
Bajaj Allianz
None of These


23. Loan Agreements signed by India in June 2019 -

  1. _________________________ Million Loan Agreement with World Bank for improving basic urban services in Jharkhand and improve management capacity of urban local bodies (ULBs) in State.
  2. $250 Million Loan Agreement with World Bank for First Resilient Kerala Program, which seeks to enhance State’s resilience against impacts of natural disasters and climate change.
  3. $31.58 million Loan Agreement with World Bank Uttarakhand Public Financial Management Strengthening Project, that will help improve State’s ability to manage its Financial Systems and lead to Better Utilization of Development Resources.
  4. $350 million loan agreement with Asian Development Bank(ADB), to rehabilitate and upgrade two state highways and 23 major district roads totaling about 850 kilometers in Chhattisgarh. It will improve connectivity and access to basic services and livelihood opportunities in state. Total cost of the project is $521.69 million. State government will provide $171.69 million.
  5. Loan Agreement of $400 Million with World Bank, to expand coverage and quality of interventions for control of Tuberculosis (TB), to support India’s National Strategic Plan to end TB in India by 2025.
  6. Loan Agreement of $328 Million with World Bank, to help improve quality and responsiveness of public health services in Andhra Pradesh. The Loan will support Government of Andhra Pradesh as it scales-up its efforts to bring better health care to all its citizens.
  7. US$ 250 Million Loan Agreement with World Bank, for Rajasthan State Highways Development Program II Project to build State's capacity to better manage its highways and improve traffic flows on selected highways in State of Rajasthan. 
$197
$347
$247
$147
None of These


24. Indian GDP Growth Forecasts (June 2019) -

  1. American banking firm Goldman Sach Predicted Indian GDP Growth rate to be ________________________ in 2019-20.
  2. World Bank retained its forecast of India's growth rate at 7.5% for current financial year (FY 2019 - 20), In its Global Economic Prospects report.
    1. South Asia regional GDP is expected to expand to 6.9 % in 2019 (0.2 percentage point down from previous projections owing to downward revisions for Pakistan).
    2. World Bank also slashed global forecast for 2019 to 2.6% as compared to 2.9% earlier. Report stated that Growth slowdown was because of deceleration in investments due to trade tensions between US and China.
  3. Fitch Global Economic Outlook lowered India's growth forecast from 6.8% to 6.6% for FY 2019-20. It retained Indian GDP growth forecast for the next fiscal (2020-21) at 7.1% and 7.0% for 2021-22.
  4. Singapore based DBS Bank revised India’s Gross Domestic Product (GDP) forecast for FY 2019-20 to 6.8%, from 7% Eaelier. Inflation rate was estimated at 3.8% for FY20 against 3.4% of FY19.
7.9 %
9.2 %
8.2 %
6.2 %
7.2 %


25. India’s trade deficit expanded to a six-month high of ________________________ billion in May 2019, with import growth outpacing export growth. Exports grew 3.93% in May, while imports rose 4.31%.

$25.4
$5.4
$15.4
$35.4
None of These


26. ________________________ (ICICI) launched a dedicated center in Bengaluru to provide hassel free services to small business owners and startups. It provides services including capital loans and legal and valuation desk to help customers in resolving challenges related to collateral for various loans.

Industrial Credit and Investment Corporation of India
Internal Credit and Investment Corporation of India
Industrial Credit and Internal Corporation of India
Industrial Core and Investment Corporation of India
None of These


27. ______________ Bank came under purview of Right to Information Act and Central Vigilance Commission (CVC) guidelines, to ensure greater transparency and accountability.

PNB
Jammu and Kashmir
SBI
ICICI
None of These


28. ________________ partnered with Centrum Wealth Management Ltd to form private limited Joint Venture (JV) to provide wealth management services to its clients. ____________ will hold 51% of share capital, Centrum will hold 45% and 4% will be held by JV’s Staff.

RBL Bank
HDFC Bank
Karur Vysya Bank
ICICI Bank
None of These


29. _______________ Government presented interim budget for the financial year 2019-20 with a revenue deficit of INR 20,292.94 crores, higher than 2018 deficit of INR 14,960.04 crores. -

  1. Estimated revenue expenditure is INR 3,34,933 crores, against receipts of 3,14,640.12 crores.
  2. Insurance cover will be provisioned for all people in state (5.5 crores), under Gopinath Munde Shetkari Apghat Vima Yojana which will be expanded with outlay of Rs 210 crores.
  3. Aid for Sanjay Gandhi Niradhar Yojana and Shravan Bal Yojana is raised from Rs 600 to Rs 1,000.
  4. A widow with one child will get aid of Rs 1,100 per month and those with two kids will get Rs 1,200 per month.
  5. Project Chullah-free and smoke-free Maharashtra will be launched by Government of Maharashtra, aimed at providing smoke-free environment in kitchen for women.
Punjab
Haryana
Rajasthan
Gujarat
Maharashtra


30. Max Life Insurance Company launched a unique proprietary tool named ‘__________________________’ (MyPQ) to ensure financial protection in country. The tool helps consumers to measure their preparedness for their life stage goals and gives protection against unplanned eventualities of life. Final output is quotient reflected on a scale of 100, giving idea about status of financial protection of an Individual.

My Purity Quotient
My Protection Quotation
My Protection Quotient
Mutual Protection Quotient
None of These


31. Merger of _______________Bank and Bharat Financial Inclusion Ltd (BFIL) will be effective from 4 July 2019, as per an order by National Company Law Tribunal (NCLT).

  1. The Merger process began in october 2018, with _____________ Bank deciding to acquire leading micro-finance player BFIL, earlier known as SKS Microfinance.
  2. After merger, current CEO of BFIL, M R Rao, will become CEO of IndusInd Financial Inclusion Ltd (IFIL).
Axis
ICICI
HDFC
Induslnd
None of These


32. NBFC L&T Finanace Services Ltd launched “Digital Sakhi” educational program aimed at financial inclusion of rural women in Villupuram District, ________________.

  1. L&T Finance also launched ‘Sabse Khaas Loan’ for two-wheeler customers. , which provides burden-free and low-cost finance for two-wheelers eliminates and need for hypothecation of vehicle to financier over tenure of loan.
Kerala
Tamilnadu
Karnataka
Andhra Pradesh
None of These


33. NBFC Sundaram Finance Ltd (SFL) will acquire stakes held by BNP Paribas in their two joint venture companies for aprox INR _____________ Crores.

  1. SFL will acquire 49.9 % stake of BNP Paribas in Sundaram BNP Paribas Home Finance limited (SBPHFL) for about Rs.999.66 crores.
  2. SFL will also acquire 49% stake of BNP Paribas Securities Services in Sundaram BNP Paribas Fund Services (SBFS) for about 1.50 crores.
  3. With the acquisitions, both joint ventures would become a wholly owned subsidiary of Sundaram Finance.
1000
2000
3000
4000
None of These


34. National Health Authority (NHA) and ______________________ signed MoU to train 15,000 state and district personnel and Pradhan Mantri Arogya Mitras to provide delivery of health services under Ayushman Bharat Scheme over 1 year.

Kotak Foundation
Reliance Foundation
TATA Foundation
HDFC Foundation
ICICI Foundation


35. ___________________ (NSIC) signed MoU with  Common Service Centres (CSC)  e-Governance Services India for enhancing new offerins  for MSME sector by synergizing each others' competence. MoU will also enable CSCs  to utilize plethora of  NSIC offerings through the NSIC portal (www.msmemart.com).

National Safety Industries Corporation
National Small Industries Corporation
Native Small Industries Corporation
Neutral Small Industries Corporation
None of These


36. Oil and Natural Gas Corporation (ONGC) overtook India Oil Corporation (IOC) as India’s most profitable Public Sector Undertakings (PSU).

  1. ONGC's net profit increased by 34% to INR _______________ as compared to it IOC's net profit of INR 17274 crores for FY 2018-19.
  2. ONGC had lost the most Profitable PSU Title to IOC in previous two financial years (2016-17 and 2017-18).
26716 crores
21716 crores
36716 crores
46716 crores
None of These


37. Paytm Payments Bank had second most value of digital transactions in FY 2019-20, with 501.16 crores worth of Transactions. It is behind only afer __________________ in this regard. Paytm payments bank has share of 19% and 32% respectively in terms of mobile banking and UPI transactions. Paytm PB has over 500 crore deposits in savings accounts, largest among payments bank in India.

PNB
ICICI
HDFC
RBI
SBI


38. RBI Second Bi-monthly Monetary Policy Review 2019-20 -

  1. 6 member RBI Monetary Policy Committee (MPC) is led by RBI Governor Shaktikanta Das.
  2. RBI cuts Repo Rate by 25 bps, also changing other monetary policy metrices.
  3. RBI revises GDP growth for year 2020 downwards to ____________________ from 7.2 % projected earlier.
  4. Minimum Liquidity Ratio for Domestic Systemically Important Banks (DSIBs) to be 4 %. For other banks, Minimum Liquidity Ratio shall be 3.5 %. 
  5. Current Monetary Policy Rates -
    1. Repo Rate - 5.75 %
    2. Reverse Repo - 5.50 %
    3. Bank Rate - 6 %
    4. CRR (Cash Reserve Ratio) - 4 %
    5. SLR (Statutory Liquidity ratio) - 19 % (RBI decided to reduce SLR from to 18.0% in six quarterly instalments beginning January 2019)
    6. Marginal Standing Facility (MSF) Rate - 6 %
7 %
6 %
6.5 %
6.8 %
None of These


39. _____________ Updates -

  1. Launched Complaint Management System (CMS), to be used for lodging complaints against banks and NBFCs with a view to improve customer experience in timely redressal of grievances.
  2. Mandated that all Payment System Operators (PSOs) shall store entire payment data in systems located only in India, after PSOs sought clarification on issue of data localization.
    1. In April 2018, RBI issued a directive on ‘Storage of Payment System Data‘ by which it had advised all system providers to ensure that within a 6 months period, entire data relating to payment systems operated by them is stored in a system only in India.
  3. Observed Financial Literacy Week Between June 3 - 7, 2019, with Theme Farmers, on how they can benefit by being a part of formal banking system. RBI designed Audio visuals on “Basic Financial Literacy“, “Unified Payments Interface” (UPI) and “Going Digital” for benefit of general public on topics relating to Financial Literacy.
  4. Advised all Scheduled Commercial Banks to adopt Education Loan Scheme, formulated by Indian Banks Association. It provisions Loan upto Rs 10 lakh for study in India, upto 20 lakh for study abroad and Collateral free loans upto 7.5 Lakh under Credit Guarantee Fund Scheme for Education Loans (CGFSEL). Repayment period of 15 years.
  5. Amended norms on banks’ exposure to large borrowers, to reduce concentration of risk and align them with global norms. It will help in lending to Non-Banking Financial Companies (NBFC) in an effective way and invite scrutiny on structure of these entities.
    1. As per revised ‘Large Exposures Framework’ (LEF) norms, sum of all exposure values of a bank to a single counter-party should not be greater than 20% of bank’s available eligible capital base at all times.
    2. With regards to connected counter-parties, sum of all exposure values of a bank to a group of connected counter-parties should not be greater than 25% of bank’s available eligible capital base at all times.
    3. On exposures to NBFCs, banks’ exposures to a single NBFC are restricted to 15% of their eligible capital base.
  6. Announced to set up a foreign exchange trading platform for retail participants, to create a infrastructure that ensures fair pricing for users of foreign exchange like Small and Medium Enterprises (SME) exporters & importers and individuals. It will be available to users from early August 2019. Draft Guidelines were issued in Oct 2017.
    1. Foreign exchange trading platform will enable customer to choose most competitive rate among all banks and buy forex.
    2. Minimum order size would be USD 1000 and thereafter in multiples of USD 500. Maximum order size shall be USD 500,000.
  7. Asked banks to ensure their ATMs are grouted to a structure preferably wall, pillar, or floor by End of September 2019, to enhance security.
    1. This is one of recommendations made by panel formed In October 2016, under D K Mohanty. The Committee on Currency Movement (CCM) was tasked to review entire gamut of security of treasure in transit.
  8. Has Put Rs 1 crore Penalty on HDFC Bank, pertaining to submission of forged bill of entries (BoEs) by certain importers to HDFC Bank for remittance of foreign currency.
  9. Has put penalty of INR 2 crores on Kotak Mahindra Bank for its failure to adhere to RBI’s diktat on promoter shareholding. RBI has been in a dispute with Kotak Mahindra since 2014 over its failure to meet milestone for stake reduction by Its founder Uday Kotak.
    1. Under RBI shareholding norms, Uday Kotak was required to cut his holding to 20 % from 30 % in Kotak Mahindra Bank, by December 31, 2018 and to 15 % by March 2020.
  10. Has set an average base rate of 9.18% for Non-Banking Financial Companies (NBFCs) and Micro Finance Institutions (MFIs), to be charged from customers for quarter July - Sep 2019. RBI sets average base rate on basis of an average of base rate of the 5 largest commercial banks.
  11. Imposed penalty Rs 11.25 lakh on two prepaid payment instrument (PPI) issuers Yes Bank and ZipCash, for non-compliance with regulatory norms.
  12. Issued a regulatory framework for setting up of financial benchmark administrator (FBA) for administering ‘significant benchmarks’ in markets for financial instruments. Significant benchmarks are notified by central bank taking into consideration its use, efficiency, and relevance in domestic financial markets. Without obtaining RBI's authorization, FBA will not administer a ‘significant benchmark’.
    1. FBAs will be incorporated in India as a company that will maintain a minimum net worth of Rs 1 crore.
  13. Issued new NPA guidelines Prudential framework for resolution of stressed assets to deal with bad loans, as per provisions of Section 35AA of the Banking Regulation Act 1949. Previous circular that was issued by RBI in Feb 2019, was rejected by Supreme Court.
    1. RBI mandated lenders to review accounts within 30 days of default and initiate a resolution plan before default. Its Mandatory to sign inter-creditor agreement (ICA) by all lenders, which will provide for a majority decision making criteria.
    2. Earlier norm of 100 % approval from creditors is also changed. ICA shall now provide any decision agreed by lenders representing 75 % by value of outstanding credit facilities and 60 % of lenders by number shall be binding upon all lenders.
    3. Lenders must resolve over INR 2000 crores NPA account within 180 days.
    4. Lenders will have to make 35 % provisions–first 20 % for 180 days and additional 15 % if no resolution is found within 365 days.
    5. For borrowers with exposure between INR 1500 - 2000 crores, new norms will be applicable from January 1, 2020. Terms for loans up to 1500 crores will be announced shortly.
  14. Permitted Asset Reconstruction Companies (ARCs) to acquire financial assets from peers (other ARCs), in view of amendment to Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest (SARFAESI) Act 2002. . However, RBI mandated that all such transactions have to be settled in cash. This will help improve liquidity in Asset Reconstruction Companies’ market.
  15. Relaxed regulations for Basic Savings Bank Deposit (BSBD) Accounts (also called no-frills accounts)
    1. Now, BSBD account holders will get a cheque book and certain minimum facilities, free of charge by the bank. Previously, additional facilities for these accounts attracted requirement of maintaining a minimum balance and other charges.
  16. Stated that India’s Current Account Deficit (CAD) increased to $57.2 billion or 2.1% of Gross Domestic Product (GDP) in FY19, against 1.8% of 2018 (which was $48.7 billion). It was highest in 6 years due to higher trade deficit caused by high crude oil imports.
    1. Increase in trade deficit to $180.3 billion for 2019 (against $160 billion in 2018), led to widening of CAD in FY19.
SEBI
RBI
IRDAI
PFRDA
None of These


40. Revised Income Tax guidelines came into effect, aimed at making strict decision against tax invaders.

  1. Under revised guidelines, those indulging in serious offences under black money and benami laws will not be able to get away just by paying a penalty. Earlier, taxpayers were able to settle cases of tax evasion earlier by just paying the tax demand, penalty and interest.
  2. Offences under serious criminal cases of money laundering, terror financing, corruption, possession of benami propertiesand undisclosed foreign assets will be generally non-compoundable (will not be written-off). CBDT has listed 13 cases where the offences are not to be generally compounded.
  3. Finance Minister will be sole authority to relax the guidelines in a deserving case.
  4. Offences under Sections 275A, 275B and 276 of Act will not be compounded. New guidelines supersede those issued in ___________________.
2018
2017
2016
2015
2014


41. ______________ Updates -

  1. Issued wider disclosure norms for Credit Rating Agencies (CRAs), amid rising instances of debt defaults and credit rating agencies (CRAs) failing to forewarn investors of deteriorating credit profiles of firms.
    1. Now, CRAs will be required to disclose a matrix on probability of default (PD) for various rated instruments. CRAs will also have to comply with a uniform Standard Operating Procedure (SOP) in respect of tracking and timely recognition of default.
    2. Standardised and uniform PD benchmarks shall be disclosed by CRAs, for ratings of long-term and short-term instruments, on a consolidated basis for all financial instruments rated by a CRA.
  2. Allowed stock exchanges with Commodity Derivative Segment (CDS) to introduce futures on commodity indices, to will facilitate mutual fund and institutional participation in commodity exchanges.
    1. Stock exchanges are required take prior approval from SEBI to launch such contracts.
    2. Constituent futures contracts should be in existence on the respective exchanges for at least the previous twelve months and they should have been traded at least 90% of trading days during previous twelve months, with average daily turnover during previous 12 months at Rs 75 crore for agricultural and agri-processed commodities and Rs 500 crore for all other commodities.
  3. Released a discussion paper for informant mechanism related to insider trading. Proposed amendments to __________ (Prohibition of Insider Trading) Regulations 2015 are aimed at providing confidentiality and safeguards.
    1. It proposes monetary reward up to Rs 1 crore for genuine whistleblowers, or 10 % of Involved amount (whichever is less). It would be in the case where money disgorged is at least Rs 5 crores.
    2. Informant will be required to fill a Voluntary Information Disclosure Form (VIDF) which must include credible information.
    3. Suggested to set up Office of Informant Protection (OIP) which will act as a medium of exchange between informant and board.
RBI
SEBI
IRDAI
PFRDA
None of These


42. Will become first bank to introduce repo-linked home loan products, from July 2019. Any changes in Repo Rate by RBI would be passed on directly to customers.

  1. Home loans up to 75 lakh will be priced at 2.65% over repo rate of 5.75% resulting in the interest rate of 8.40%. At present, SBI offers home loans linked to its MCLR (Marginal Cost of Funds Based Lending Rate) at 8.55%.
  2. Bank also reduced interest rate on Cash Credit Account (CC) and Overdraft (OD) customers with limits above Rs 1 lakh. Now, effective Repo-Linked Lending Rate (RLLR) for CC/ OD customers is 8% whereas for savings deposits above Rs 1 lakh new rate is 3%.
    1. In March, SBI had linked all CC accounts and ODs with limits above 1 lakh to repo rate plus a spread of 2.25%. For account balance above 1 lakh, it had set its savings deposit rates to 2.75% below repo rate.
HDFC Bank
SBI
ICICI Bank
Axis Bank
None of These


43. Tata Mutual Fund launched side-pocketing (segregated portfolio) option to set aside its troubled investment in Dewan Housing Finance Limited (DHFL). They are created for 3 schemes - Tata Corporate Bond Fund, Tata Medium Term Fund, and Tata Treasury Advantage Fund.

  1. This is India’s first formal use of side pocketing provisions, introduced by SEBI in December __________________.
  2. Side pocketing -
    1. Its a procedure introduced by SEBI allowing Asset Management Companies (AMCs) to separate out a section of their portfolio corresponding to bad debt held by them.
    2. Investors receive units in segregated portfolio and these units are held separately. No further inflows are allowed into the side-pocketed component of the fund.
    3. Investors can redeem these units when money is recovered from bad debt.
2018
2017
2016
2015
None of These




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