MCQ Test: RBI Circulars- 1 - Bank Exams MCQ

The merger between Maratha Co-op Bank and Cosmos Co-op Bank is primarily aimed at ensuring uninterrupted access to banking services for the customers of Maratha Co-op Bank. The merger will transfer the accounts and deposits of Maratha Co-op Bank customers to Cosmos Co-op Bank, ensuring their continued access to banking services.

The merger with Maratha Co-op Bank will benefit the customers of Cosmos Co-op Bank by enhancing operational efficiencies and improving customer services. The merger will allow Cosmos Co-op Bank to adopt best practices from Maratha Co-op Bank and streamline its operations, leading to improved customer experiences and services.

The objective of the G20 TechSprint Initiative launched by RBI and BIS is to promote innovative solutions aimed at improving cross-border payments. The competition invites developers from around the world to participate and provide solutions to the specified problem statements related to cross-border payments.

The results of the G20 TechSprint Initiative will be announced at a final event in August or September 2023. The exact date is not mentioned in the given information.

The granting of an NBFC license by the RBI to Jupiter is significant because it allows the neobanking start-up to expand its lending operations directly to customers. Previously, Jupiter operated its lending business through partner NBFCs. With the license, Jupiter can now offer credit directly to its customers. Additionally, the license enables Jupiter to capitalize its lending business with Rs 100 crore and raise an additional Rs 100 crore in debt to fund its credit operations. Therefore, all the options mentioned (A, B, and C) are correct.

According to the given information, Jupiter aims to achieve annual disbursements of Rs 600-700 crore in short- and medium-term personal loans. This target indicates the volume of loans that Jupiter plans to provide to its customers in the specified loan categories.

According to the provided information, direct advances to the agriculture and SME sectors that are standard attract a uniform provisioning requirement of 0.25 percent of the funded outstanding on a portfolio basis, regardless of the UBC tier.

According to the given context, HDFC Bank has been given three years by the RBI to comply with the priority sector lending norms following its merger with HDFC Ltd (HDFC). This means that the bank has been provided with a timeframe to fulfill the requirements of lending to priority sectors as mandated by the RBI.

As per RBI norms, commercial banks are required to extend 40% of the adjusted net bank credit (ANBC) of the previous year towards the priority sector. This is a requirement for banks to ensure that a certain proportion of their lending is directed towards priority sectors such as agriculture, small businesses, education, housing, etc.

The given context mentions that HDFC Bank has received relief from the RBI regarding priority sector lending norms, allowing them three years to comply. However, there is no mention of any relaxation in the cash reserve ratio (CRR) and statutory liquidity ratio (SLR) rules. These ratios determine the portion of deposits that banks are required to maintain with the RBI in the form of cash and approved securities, respectively.

Obtaining an NBFC license from RBI allows InPrime Finserv to operate as a Non-Banking Financial Company. This enables them to offer more advanced and customized financial products and services to their customers. NBFCs have the flexibility to design and provide tailor-made solutions for the underserved or unbanked segments of the population, which is a significant advantage over the formal banking sector.

Compared to traditional banks, NBFCs have lower operating costs and regulatory requirements. This allows them to operate with greater efficiency and profitability. The reduced regulatory burden enables NBFCs to offer more flexible and innovative financial products and services, particularly benefiting those who are underserved or unbanked by the formal banking sector.

The auction conducted by the RBI serves the purpose of managing debt and liquidity in the market. It involves the conversion and switching of government bonds, which allows for the exchange of old bonds with new ones that have different maturity dates and interest rates. This helps in regulating the debt and liquidity levels in the market.

The types of bonds involved in the auction conducted by the RBI were floating rate bonds (FRB), which have variable interest rates that change periodically, and fixed rate bonds, which have fixed interest rates that remain constant throughout the tenure. These bonds provide different options for investors based on their interest rate preferences.

The grant of an AD category-I licence by the RBI enables AU Small Finance Bank (SFB) and Equitas Small Finance Bank to offer foreign exchange facilities to non-resident Indians (NRIs). This allows these banks to facilitate banking transactions for NRIs and provide them with foreign exchange services for purposes such as foreign travel, education abroad, remittances, trade transactions, foreign investments, and other current account transactions.

An AD category-I licence is granted by the RBI to banks, allowing them to buy and sell foreign exchange for specified purposes. These purposes include foreign travel, education abroad, remittances, trade transactions, foreign investments, and other current account transactions. This licence gives banks the authority to deal in foreign exchange and provides flexibility to meet the foreign exchange business requirements of their customers, including non-resident Indians (NRIs).

The guidelines for green deposits issued by the RBI apply to scheduled commercial banks (excluding regional rural banks, local area banks, and payments banks) as well as deposit-taking non-banking financial companies.

The RBI's Green Deposit Framework excludes certain industries/projects, including nuclear power, direct waste incineration, alcohol, tobacco, palm oil, landfill projects, hydroelectric plants larger than 25 MW, and renewable energy projects generating energy from biomass using feedstock from protected areas. These exclusions indicate that the framework aims to promote environmentally sustainable projects and activities by restricting support for industries that may have adverse environmental impacts.

The given information states that the Reserve Bank of India raised the repo rate by 25 basis points in the month of February.

The given information mentions that the Monetary Policy Committee (MPC) of the Reserve Bank will be meeting to discuss firming up the next monetary policy for retail inflation. The meeting will consider various domestic and global factors, including recent actions by central banks such as the US Federal Reserve, European Central Bank, and Bank of England.