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Banking and Economy Current Affairs Quiz - May 2019

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1. RBI enhanced housing loan limits for Regional Rural Banks (RRBs) and Small Finance Banks (SFBs) for eligibility under priority sector lending, to give them a level playing field with other Scheduled Commercial Banks. Now, housing loans can be given by RRBs and SFBs to individuals up to INR __________________ lakh in metropolitan centers (with population of 10 lakh and above) and INR 25 lakh in other centers.

35
30
45
50
None of These


2. A government-appointed advisory group suggested issuance of 'Elephant Bonds' (________________________-year sovereign bonds) wherein people declaring undisclosed income will have to mandatorily invest half of that amount in these securities, to be utilised only for infrastructure projects. The 12-member group was set up by commerce ministry in September 2018.

  1. Report also contains several other recommendations, inlduding lowering effective corporate tax rate, bringing down cost of capital and simplifying regulatory and tax framework for foreign investment funds. These are aimed at increasing India's exports of goods and services from USD 500 billion in 2018 to over USD 1000 billion in 2025.
15
5
25
35
None of These


3. According to Crisil Ratings (formerly Credit Rating Information Services of India Limited), in 2018-19, Rs 70,000 crore bad loans were recovered through Insolvency and Bankruptcy Code (IBC) with a recovery rate of 43 percent in 94 cases. Gross NPA of banking sector to ______________ till March 2019, from 11.5% in 2018, as a result of IBC process.

9%
6%
8%
10%
None of These


4. After RBI recently released a draft framework for setting up a ________________ (RS) for fintech companies, SEBI and IRDAI have also launched similar initiatives.

  1. RS helps fintech players live test their products , before getting necessary regulatory approvals for a mass launch, saving time and cost.
  2. SEBI released its RS framework, to create an ecosystem that promotes innovation in securities market.
  3. IRDAI also, in February 2019, recommended setting up a regulatory sandbox to test new digital and tech-based innovations, before launching them in market. For IRDAI sandbox, applicant should have net worth of 10 lakh and a proven financial record of at least 1 year.
Regulatory Safebox
Respiratory Sandbox
Respiratory Safebox
Recursive Sandbox
Regulatory Sandbox


5. As per Reports, Direct Tax collections fell short by INR 82000 crores during 2018-19 Collections were __________________ Lakh Crores, against target of 12 lakh crores. Total tax collection were 13.4 % more than previous fiscal but fell short of revised target of 18 %.

10.18
9.18
11.18
8.18
None of These


6. As per _________________ Ecowrap Report, Q4 quarter (Jan - Mar 2019) is expected to moderate to 6.1-5.9 %, which could pull down growth rate for the entire fiscal 2018-19 to under 7 %. This may force RBI to cut upto 0.50 % cut in Monetary Policy rates.

SBI
RBI
SEBI
IRDAI
None of These


7. _________________ launched a specialised insurance cover titled ‘Mumbai Local Train Cover‘ for passengers travelling in local trains in Mumbai, with insurance cover of Rs 1 lakh against a payment of Rs 399 per annum.

TATA Aig
Bajaj Finance Ltd
SBI
Indiabulls Finance
None of These


8. Bank credit grew by ______________________ in FY 2018-19, compared to 10.3% in previous fiscal, mainl aided by loans to services and retail sector. Deposit growth also gained momentum, growing by 10% as compared to 6.7% a year ago.

13.2%
11.2%
14.2%
15.2%
None of These


9. Bharti Airtel and ________________________ Insurance tied up to offer life cover for customers who get a prepaid recharge done. Airtel’s new Rs 249-prepaid bundle will now also offer a cover worth Rs 4 lakh.

HDFC Life
Kotak Life
ICICI
Bajaj Finserv
None of These


10. ___________________ launched an app named ‘StAR MF‘ in order to enable more participation and aid mutual fund distributors to accelerate transactions process.

SEBI
Multi Commodity Exchange of India
National Stock Exchange
Bombay Stock Exchange
None of These


11. Corporate Affairs Ministry will introduce artificial intelligence system in _______________ portal, to make compliance process easier and ensure routine enforcement activities are done regularly on autopilot basis.

  1. This Portal is electronic backbone for distribution of information to all concerned stakeholders, corporates and investors. All filings under companies law are submitted to ministry through this portal.
  2. AI will aim to rationalise all the forms and follow the principle of a single source of truth so that one is not required to fill in the known details again, as it will get filled automatically.
MCA 41
MCA 31
MCA 11
MCA 21
None of These


12. Foreign direct investment (FDI) in services sector grew __________________ to USD 9.15 billion in 2018-19, according to Department for Promotion of Industry and Internal Trade (DPIIT). Increasing FDI inflows in services sector is vital as it contributes over 60 % to gross domestic product. It accounts for about 18 % of total FDI India received between April 2000 and March 2019.

  1. Overall FDI inflows declined for first time in the last six years in 2018-19, falling 1 per cent to USD 44.37.
26.5 %
36.5 %
31.5 %
21.5 %
None of These


13. GST revenue collected in April 2019 was ________________ crores, highest ever monthly receipts ever in GST regime. IGST (Integrated Goods and Services Tax) has biggest share with 54733 crores ?

128865
108865
123865
103865
113865


14. _________________ payments company Wirecard tied up with India's UTI Infrastructure Technology and Financial Services, to simplify process of issuing PAN Cards. Wirecard's network of 15,000 retail agents in 350 cities would help collect and scan in documents that people need to apply for a PAN card.

German
Russian
French
Spanish
None of These


15. Government proposed to merge _________________ (NSSO) with Central Statistics Office (CSO) under Ministry of Statistics and Programme Implementation (MoSPI), to form National Statistical Office (NSO).

  1. This skips any mention of National Statistical Commission (NSC), which oversees all statistical work done in India. This order does not equate Secretary (Statistics and Programme Implementation) with Chief Statistician of India. Thus, It is being widely perceived as a dent on autonomy of Indian statistical system.
  2. NSSO was earlier an attached office of MoSPI, which gave it a legally distinct identity from ministry and NSC used to oversee all aspects of statistical work. With merger of CSO and NSSO, autonomy of NSSO will be gone and NSC’s control over NSSO will not be there.
  3. In 2005, MoSPI notified setting up of NSC and proposed entity named National Statistical Organisation that will act as executive wing of government for statistics and would act according to policies of NSC. NSO would be headed by an officer called Chief Statistician of India and will also function as Secretary of (National Statistical) Commission.
National Safety Survey Office
Neutra Sample Survey Office
Native Sample Survey Office
National Sample Survey Office
None of These


16. Government stated that ___________________ Crore Income Tax Returns were filed During Assesment Year 2018-19, compared to 5.47 crore ITRs filed for Assessment Year 2017-18. It shows substantial increase of 18.7 %.

7.49
6.99
6.49
8.49
None of These


17. Government, in consultation with RBI, has formulated scheme for issuing Sovereign Gold Bonds every month from June - September 2019 as per Given calendar. Bonds will be sold through Scheduled Commercial banks, Stock Holding Corporation of India Limited (SHCIL), designated post offices, and recognised stock exchanges - NSE and BSE.

  1. S.No.

    Tranche

    Date of Subscription

    Date of Issuance

    1

    2019-20 Series I

    June 03-07, 2019

    June 11, 2019 (Issue price to be INR _________________________________________ per gram)

    2

    2019-20 Series II

    July 08–12, 2019

    July 16, 2019

    3

    2019-20 Series III

    August 05-09, 2019

    August 14, 2019

    4

    2019-20 Series IV

    September 09-13, 2019

    September 17, 2019

  2. Features -
    1. Sl. No.

      Item

      Details

      Eligibility

      The Bonds will be restricted for sale to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.

      Denomination

      The Bonds will be denominated in multiples of gram(s) of gold with a basic unit of 1 gram.

      Tenor

      The tenor of the Bond will be for a period of 8 years with exit option after 5th year to be exercised on the interest payment dates.

      Minimum size

      Minimum permissible investment will be 1 gram of gold.

      Maximum limit

      The maximum limit of subscribed shall be 4 KG for individual, 4 Kg for HUF and 20 Kg for trusts.

      Joint holder

      In case of joint holding, the investment limit of 4 KG will be applied to the first applicant only.

      Issue price

      Price of Bond will be fixed in Indian Rupees on the basis of simple average of closing price of gold of 999 purity. Issue price will be 50 per gram less for those who subscribe and Pay online. Cash Payment of Max INR 20000 will be accepted.

      Interest rate

      The investors will be compensated at a fixed rate of 2.50 per cent per annum payable semi-annually on the nominal value.

      Commission

      Commission for distribution of the bond shall be paid at the rate of 1% of the total subscription received. Receiving offices shall share at least 50% of commission with agents.

2196
3196
4196
2596
None of These


18. HDFC Capital Advisors (HDFC Ltd subsidiary) launched a new initiative called _________________________ (HeART), aiming to invest in real estate technology companies that drive innovation within affordable housing ecosystem.

HDFC Acceptable Real Estate and Technology Program
HDFC Affordable Real Estate and Technology Program
HDFC Affordable Rear Estate and Technology Program
HDFC Affordable Rare Estate and Technology Program
None of These


19. ___________ collaborated with IMGC (India Mortgage Guarantee Corporation) for a mortgage guarantee-backed home loan. Mortgage guarantee is a financial product which compensates lending institutions for losses that may occur when a home owner defaults on a mortgage loan. In it, risk of home loan gets transmuted from bank to mortgage guarantee company. ?

Axis Bank
Kotak Mahinda Bank
ICICI Bank
HDFC
None of These


20. HDFC group overtook Tata group to emerge as India's most valuable by way of market capitalization, with combined market value of five listed companies of HDFC group (HDFC, HDFC Bank, HDFC Life, HDFC Asset Management and Gruh Finance) at 11.66 lakh crores. TATA Group's ________________ entities have combined m-cap of 11.64 lakh crores.

  1. Also, Reliance Industries got past Indian Oil Corporation (IOC) as India’s biggest company by revenue. Reliance, in 2018-19, reported a turnover of 6.23 lakh crores. IOC posted turnover of Rs 6.17 lakh crore for this period.
29
19
9
39
None of These


21. Home Ministry cancelled registration of NGO Infosys Foundation under ______________________ (FCRA) for violating norms of receiving foreign grants. All NGOs have to mandatorily register under FCRA Act.

  1. Reason for this cancellation is non submission of annual income and expenditure statement on foreign funding for last 6 years. This submission should be done within the 9 months of the closure of the financial year.
  2. Infosys Foundation in June 2016 wrote to Home Ministry requesting cancellation of its license under FCRA. Foundation was registered under FCRA Act in January 2016 and in May 2016, Government amended cFCRA Act in Finance Bill with retrospective effect from 2010. As a result, Foundation no longer came under purview of FCRA Act.
Foreign Contribution (Regulations) Act
Foreign Contribution (Restrictions) Act
Fewer Contribution (Regulations) Act
Fewer Contribution (Restrictions) Act
None of These


22. IBM India tied-up with _______________ General Insurance Company, to co-create new Artificial Intelligence (AI)-based solutions. __________ General Insurance Company launched a scheme termed ‘Mosquito Disease Protection Policy’ which will cover a person against common mosquito-borne diseases. ?

TATA Aig
HDFC ERGO
Iffco Tokyo
Future Generalli
None of These


23. India Ratings downgraded _____________’s long-term rating to ‘IND AA-’ with a negative outlook, while reaffirming short-term rating. ICRA also downgraded long-term ratings of ________.

SBI
Axis bank
HDFC Bank
YES bank
None of These


24. Indian GDP Growth Forecasts (May 2019) -

  1. UN World Economic Situation and Prospects (WESP) 2019 Mid-year Update Predicted Indian GDP Growth rate to be _______________ in 2019 and 7.1 % in 2020, down from earlier prediction of 7.6 % in FY 2019 and 7.4 in FY 20.
  2. OECD (Organisation for Economic Co-operation and Development) predicted India's GDP to grow at 7.25% in FY19 and 7.5% in FY20.
  3. As per India Ratings and Research Pvt. Ltd, India's GDP will expand by 6.9 % in 2018-19, marginally lower than Central Statistics Office's advance estimate of 7 %.
  4. FICCI Survey Predicted GDP Growth forecast at 7.10 % for Financial Year 2020 and 7.20 percent for FY 2021. For FY, growth is estimated to be between 6.80 - 7.3 %.
7.5 %
5.5 %
6.0 %
6.5 %
7.0 %


25. _______________________ launched ‘Bank on Wheels’ facility in 14 districts in Tamil Nadu and Kerala. It will enable public, especially senior citizens, to get conveniently get door-step banking facility.

SBI
PNB
Indian Overseas Bank
BOB
None of These


26. LIC Housing Finance (LIC HFL) launched ‘Udyam’, a skilling center in ______________________, in association with Lok Bharti Education Society.

Bengaluru
New Delhi
Mumbai
Guwahati
None of These


27. Multilateral funding agency Asian Development Bank (ADB) signed an agreement to provide USD ____________________ million equivalent in Indian rupee long-term financing to electrify railway tracks in India. It is part of a broad modernisation programme that will help India's railway sector transition to electric power and away from dependence on fossil fuels.

550
750
150
900
None of These


28. National Bank for Agriculture and Rural Development (NABARD) announced INR ___________________ crores fund for equity investments in agriculture and rural start-ups. This project was launched by Nabventures, an auxiliary unit of NABARD.

  1. NABARD has been contributing to other funds till now and this is first time that NABARD has launched a fund of its own.
  2. Fund has proposed corpus of INR 500 crores, with an option to retain over-subscriptions of Rs 200 crore, called greenshoe option.
200
500
700
1000
None of These


29. National Institution for Transforming India (NITI Aayog) proposed INR _______________________ crores plan (for 3 years) to give a strong push to Artificial Intelligence in India. This fund will help to create a new cloud platform and to build new research institutes.

  1. NITI Aayog’s plan includes investments in 20 ICTAI, 5 CORE, and setting up of AIRAWAT for increasing AI technology in country. High level task force will be set up to monitor implementation.
  2. As per proposal, it can add USD 957 billion to India’s GDP by 2035. India’s annual growth can go up by 1.3% by 2035.
10000
17500
2000
5000
7500


30. ___________________ (NSIC) signed MOU with Ministry of Micro, Small and Medium Enterprises (MSME) for 2019-20. It envisages provision of enhanced services by NSIC under its marketing, financial, technology and other support services schemes for MSMEs in country.

Native Small Industries Corporation Limited
Nodal Small Industries Corporation Limited
National Small Industries Corporation Limited
National Safety Industries Corporation Limited
None of These


31. New Launched Co-branded Credit Cards -

  1. Cab Aggregator Ola partnered with SBI cards to launch Ola Money SBI Credit Card.
  2. ICICI Bank launched co-branded multi-currency card with online travel booking portal Goibibo.
  3. Digital payments company Paytm launched its first credit card called Paytm First Card, in association with __________________________. It will offer eligible customers with huge cash back benefits.
Axis Bank
HDFC Bank
ICICI Bank
Citibank
None of These


32. PSB ______________ launched ‘SME Suvidha’, a product for GST-registered MSMEs, aimed at providing best products to MSME sector.

BOB
Corporation Bank
PNB
SBI
None of These


33. ___________________ Updates -

  1. Extended timings for customer transactions in Real Time Gross Settlement (RTGS) system to 6:00 pm from 4:30 pm, to be effective from 01st June 2019.
    1. Fee for transfers between 8 am to 11 am is nil, from 11 am to 1 pm is Rs 2, and from 1 pm to 6 pm is Rs 5. Fee for transfers after initial cut off of 6 pm will be Rs 10. Final cut off for inter-bank transactions will be 7:45 pm.
    2. IDL reversal will take place between 7:45 pm and 8 pm.
  2. Fixed investment limit at Rs 54,606.55 crore for foreign portfolio investors (FPIs) under the voluntary retention route (VRR), which allows to park funds in both government securities as well as corporate debt, introduced on March 1, 2019.
    1. Revised VRR scheme will have minimum retention period would be 3 years. During this period, FPIs shall maintain a minimum of 75 % of allocated amount in India.
    2. RBI had introduced a channel called VRR, to enable FPIs to invest in debt markets in India.
  3. Imposed a monetary penalty on five Pre-Paid Payment Instrument (PPI) issuers for violating its regulatory guidelines under provisions of Payment and Settlement Systems Act 2007.
    1. These Include Vodafone m-pesa, PhonePe, Western Union Financial Services Inc AND MoneyGram Payment Systems.
    2. Three types of PPIs issued in India -
      1. Closed System - Issued by an entity and do not permit fund transfer or cash withdrawal, such as gift cards (Amazon etc). They do not require RBI approval.
      2. Semi-closed - Issued by banks / non-banks (authorized by RBI) and are not restricted to a single entity and can be used for fund transfer, Like e-wallets Including Mobikwik, PayTm.
      3. Open System - Issued only by banks (approved by RBI) and are used at any merchant for purchase of G&S and also for cash withdrawals at ATMs, Points of Sale (PoS) terminals and Business Correspondents (BCs). Ex- Vodafone mPesa.
  4. Imposed monetary penalty of INR 1 crores on Nainital Bank for its failure to fully automate non-performing asset (NPA) identification process.
  5. Released a draft circular titled ‘Liquidity Risk Management Framework for NBFCs and Core Investment Companies (CICs), to help NBFCs deal with severe liquidity problems and to prevent re-occurrence of IL&FS type of debt crisis. Highlights are -
    1. Liquidity Coverage Ratio (LCR) regime will be Introduced in a phased manner, aimed at all deposit-taking NBFCs and non-deposit taking shadow banks with an asset size of over INR 5000 crores. Shadow banks are non-bank financial intermediaries that provide services similar to traditional commercial banks but are not subject to regulatory oversight.
    2. LCR requirement would be binding on NBFCs from 1 April 2020 with minimum LCR of 60% that will be progressively increased in equal steps till it reaches required level of 100% by April 1, 2024.
    3. An NBFC shall maintain an adequate level of unencumbered (free from debt) High Quality Liquid Assets (HQLA) which under a significantly severe liquidity stress scenario can be converted into cash so as to meet its liquidity needs for 30 days.
    4. Contingency Funding Plan (CFP) should be formulated by NBFC for responding to severe disruptions which may affect NBFC’s ability to fund some or all of its activities in a timely manner and at a reasonable cost.
  6. Released vision document Titled Payment And Settlement Systems In India: Vision 2019 – 2021, to ensure a more convenient and secure e-payment system, with theme Empowering Exceptional E-payment Experience.
    1. Number of digital transactions to increase over 4 times to 8,707 crore in December 2021. Digital payment systems like UPI and IMPS will register average annual growth of over 100%, while NEFT will grow at 40%, over 2019 – 2021.
    2. It envisages achieving “a highly digital and cash-lite society”. To achieve its objective the goal posts of RBI involves 4Cs, namely convenience, confidence, competition and cost-effectiveness.
    3. Document talks about creating customer awareness, setting up a a self-regulatory organisation and 24X7 operational helpline for system operators as well as for service providers.
  7. Will allow large modern currency chests to increase service charges on cash deposited by non-chest bank branches from existing rate of 5 per packet of 100 pieces to a higher rate subject to a maximum of 8 per packet. For this, only a currency chest (CC) that fulfils minimum standards will be eligible to be classified as a large modern CC.
  8. Will create a ‘Specialised Supervisory and Regulatory Cadre’, to strengthen supervision and regulation of commercial banks, urban cooperative banks and Non-Banking Financial Companies (NBFCs).
    1. It has come after recent NBFC crisis such as large-scale defaults by IL&FS and failures by credit rating agencies to flag risks, alleged lapses by auditors and divergence in asset quality by big banks.
    2. RBI also told NBFCs with assets size of over Rs 5000 crore to appoint a chief risk officer to improve standards of their risk management.
RBI
SEBI
SBI
IRDAI
None of These


34. ___________________ Updates -

  1. Allowed Mutual funds to invest in exchange traded commodity derivatives, except those on sensitive commodities.
    1. __________ stated that no mutual fund schemes can invest in physical goods except in 'gold' through Gold Exchange Traded Funds (ETFs). ETCDs having gold as the underlying, shall also be considered as 'gold-related instrument' for Gold ETFs.
  2. Barred National Stock Exchange (NSE) from accessing securities market for 6 months and also imposed a fine of 1000 crores INR on NSE in co-location case.
    1. Co-Location refers to system wherein a broker’s server is kept in exchange premises to reduce latency (processing delay), while executing trades.
    2. In 2015, SEBI received complaints against NSE in which it was alleged that system used by NSE to disseminate data through co-location facilities was partial, as it allowed users to get information before others and thereby created an information asymmetry between users.
    3. SEBI’s found NSE guilty of committing fraudulent trade practices and it also did not exercised requisite due diligence while putting in place TBT (tick-by-tick data feed) architecture, thus affecting market fairness.
  3. __________________ Foreign Portfolio Investors Regulations 2014 Panel headed by former RBI deputy governor R Khan suggested significant changes to Foreign Portfolio Investors (FPI) Regulations.
    1. It suggested liberalized investment cap, review of prohibited sectors for foreign investment for FPIs by permitting them for off-market transactions and review of restriction on sovereign wealth funds for investment in corporate debt securities.
    2. It removes ‘opaque structure’ definition for FPIs. They need to provide BO (Beneficial Ownership) details and those who fail to provide BO details including on account of bearer shares cannot deal in SEBI.
    3. FPIs will be allowed to invest up to applicable sectoral limit on an aggregate basis after adjusting for investments made directly or indirectly under the FDI route.
HDFC Bank
IRDAI
RBI
SBI
SEBI


35. Small Industries Development Bank of India (SIDBI) has put together a pilot scheme to extend financial assistance of up to INR 10 crores to new-age fintech non-banking finance companies (NBFCs) engaged in financing small businesses and other income-generating activities.

  1. SIDBI has set exposure cap for lending to a single new-age fintech NBFC at _____________________ of NOF of new-age fintech NBFC, subject to maximum of 10 crores.
15 %
30 %
25 %
50 %
None of These


36. Srei Equipment Finance tied up with ____________________ to offer loans for purchase of equipment under a co-lending arrangement. Also, Honda Motorcycle & Scooter India partnered with IDFC FIRST Bank to provide financing solutions across country.

Oriental Bank of Commerce
SBI
PNB
BOB
None of These


37. Standard Life (Mauritius Holdings) will sell its stake of __________________ in HDFC Life Insurance Company for Rs 1,404 crores. It aims to achieve minimum public shareholding in company as per Securities and Exchange Board of India (SEBI) regulations.

.78%
11.78%
2.78%
1.28%
1.78%


38. ________________________ partnersed with FMCG arm of The Art of Living - Sri Sri Tattva. Under this, YONO users can avail discount of 15% on products offered by Sri Sri Tattva.

SBI
RBI
IRDAI
SEBI
None of These


39. North east's ______________ Gramin Bank emerged as one of top performers in banking sector, generating net profit of INR 125.44 crores in FY 2018-19. Bank also registered business of Rs. 9,000 crores in same period, with net Non-Performing Asset (NPA) of 0 % and gross NPA of 8.94 %, much below mandate set by RBI and NABARD.

Nagaland
Tripura
Mizoram
Arunachal Pradesh
None of These


40. Vodafone Idea signed a 5-year IT outsourcing deal with ________________, to support its merger synergy by decreasing IT related costs. It will offer Vodafone Idea with a hybrid cloud based digital platform to enable engagement with its 387 million subscribers, boosting business efficiency.

Microsoft
Wipro
HCL
TCS
IBM




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