Banking Awareness – 2020 for IBPS, RBI, SBI, NABARD and other Bank Examinations
Welcome to GKToday’s Banking Awareness Section. This section shows 100 random questions from GKToday’s Banking Awareness MCQs.
A chapterwise course of all the 925 questions divided into 88 Chapters in Banking Awareness is Available in
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61. What is LRS a2?
[A] LRS Modulation
[B] LRS activation
[C] LRS Declaration
[D] None of the above
Show Answer
Correct Answer: C [LRS Declaration]
Notes:
Under the Liberalised Remittance Scheme (LRS), the Indian government and the Reserve Bank of India (RBI) now require an LRS Declaration form (fully titled “A2 cum LRS Declaration”) to transfer funds abroad.
62. Which of the following was the reason to establish Liberalised Remittance Scheme?
[A] to permit citizens of India to transfer funds abroad for permitted current or capital account transactions
[B] to permit foreigners to transfer funds abroad for permitted current or capital account transactions
[C] to permit NRI to transfer funds to India for permitted current or capital account transactions
[D] None of the above
Show Answer
Correct Answer: A [to permit citizens of India to transfer funds abroad for permitted current or capital account transactions]
63. What is the maximum amount of balance can be maintained an individual in payments bank?
[A] 1,50,000
[B] 1,00,000
[C] 50,000
[D] 25,000
Show Answer
Correct Answer: B [1,00,000]
Notes:
Maximum deposit that can be maintained in payments bank is Rs 100000 per individual/business.
64. How many payments banks have actually started operations since RBI has granted the in-principle approval?
Show Answer
Correct Answer: D [6]
Notes:
Six payments that have started operations are Aditya Birla Payments Bank, Airtel Payments Bank, India Post Payments Bank, Fino Payments Bank, Jio Payments Bank, Paytm Payments Bank.
65. When did Payment and Settlement Systems Act, 2007 (PSS Act, 2007) came into force?
[A] 12th August 2008
[B] 12th September 2008
[C] 12th August 2009
[D] 12th December 2007
Show Answer
Correct Answer: A [12th August 2008]
Notes:
The PSS Act, 2007 received the assent of the President on 20th December 2007 and it came into force with effect from 12th August 2008.
66. What is a “Payment Obligation”?
[A] ontractual obligations of bank to pay an amount owed to another bank
[B] contractual obligations of a Person to pay an amount owed to another
[C] obligations of a Person to pay an amount distributed in a group
[D] none of the above
Show Answer
Correct Answer: B [contractual obligations of a Person to pay an amount owed to another]
Notes:
“Payment obligation” is defined as what is owed by one participant in a payment system to another such participant which results from clearing or settlement or payment instructions relating to funds, securities or foreign exchange or derivatives or other transactions.
67. What does S stands for in SFMS in relation to NEFT payment method?
[A] Statutory
[B] Systematic
[C] Structured
[D] Savings
Show Answer
Correct Answer: C [Structured]
Notes:
NEFT SFMS message” means an electronic Structured Financial Messaging Solution (SFMS) message containing a batch of NEFT payment instructions for funds transfer, processed and consolidated in the manner specified for transmission of payment instructions from NEFT Service Centre to the NEFT Clearing Centre
68. How many digits are present in IFSC code?
Show Answer
Correct Answer: D [11]
Notes:
IFSC – Indian Financial System Code. This is an 11 digit code with the first 4 alpha characters representing the bank, and the last 6 characters representing the branch. The 5th character is 0 (zero).
69. Which out of the following is most popular channel of foreign inward remittances to India?
[A] SWIFT
[B] Rupee Drawing Arrangement (RDA)
[C] Direct transfers
[D] Cheques and Drafts
Show Answer
Correct Answer: B [Rupee Drawing Arrangement (RDA)]
Notes:
The rupee drawing arrangement (RDA) is the most popular channel of remittances which accounts for 75.2 per cent of remittances, followed by SWIFT (19.5 per cent), direct transfers (3.4 per cent) and cheques and drafts (1.9 per cent)
70. Which of the following is not true about Bharat Interface for Money (BHIM) app?
[A] BHIM framework allows its usage without internet also.
[B] Money can also be sent to non-UPI supported banks using IFSC code and account number.
[C] BHIM allows daily transaction limit of Rs 20,000.
[D] Through BHIM app, a maximum of Rs 5,000 is allowed per transaction.
Show Answer
Correct Answer: D [ Through BHIM app, a maximum of Rs 5,000 is allowed per transaction. ]
Notes:
Bharat Interface for Money (BHIM) provides fast, secure, reliable medium to make digital payments through your mobile phone using UPI (Unified Payment Interface) platform via Mobile App and USSD (Unstructured Supplementary Service Data) platform via *99# service.
