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Which Indian public sector bank received RBI approval to hold special rupee vostro accounts for three banks from Sri Lanka?
  • a)
    State Bank of India
  • b)
    Canara Bank
  • c)
    Indian Bank
  • d)
    Punjab National Bank
Correct answer is option 'C'. Can you explain this answer?
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Which Indian public sector bank received RBI approval to hold special ...
Indian Bank received RBI approval to hold special rupee vostro accounts for three banks from Sri Lanka.

Explanation:

Indian Bank is a public sector bank in India headquartered in Chennai, Tamil Nadu. It has a network of over 2839 branches across India.

RBI approval:

The Reserve Bank of India (RBI) has given approval to Indian Bank to hold special rupee vostro accounts for three banks from Sri Lanka. Vostro accounts are accounts maintained by Indian banks for foreign banks in their currency. This will help Indian Bank to expand its business in Sri Lanka and strengthen India's diplomatic relations with Sri Lanka.

Benefits of special rupee vostro accounts:

1. This will allow Sri Lankan banks to maintain their accounts in Indian rupees, which will help them to transact in Indian currency.

2. Indian Bank will be able to earn foreign exchange through these accounts, which will help to increase its revenue.

3. This will also help to improve the trade relations between India and Sri Lanka.

4. Sri Lankan banks can also use these accounts to finance their trade transactions with India.

Conclusion:

Indian Bank's approval to hold special rupee vostro accounts for three banks from Sri Lanka is a positive step towards strengthening India's diplomatic relations with Sri Lanka and expanding its business in the country. It will also help to improve trade relations between the two countries.
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Which Indian public sector bank received RBI approval to hold special ...
Indian Bank received RBI approval to hold special rupee vostro accounts for three banks from Sri Lanka.
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Direction: Read the passage carefully and select the best answer to each question out of the given five alternatives.Banks will conduct special clearing operations for annual closure of government accounts on March 31, which is the last day of the current fiscal year, the RBI has said. The Reserve Bank has issued directions to the banks for smooth clearing operation and asked them to mandatorily participate in it. With regard to annual closing of accounts related transactions of the central and state governments, special measures are put in place for 2020-21, the RBI has instructed all the member banks to maintain sufficient balance in their clearing settlement account. Normal clearing timings as applicable to any working Wednesday shall be followed on March 31, 2021, the RBI said in a notification addressed to the member banks, urban and state cooperative banks, payments banks, small finance banks as well as the NPCI. To facilitate accounting of all the government transactions for the current financial year 2020-21 by March 31, 2021, it has been decided to conduct special clearing exclusively for government cheques across the three CTS grids on March 31, 2021, the RBI said.Under this, presentation clearing will take place between 1700 to 1730 hrs and return clearing will take place between 1900 and 1930 hrs at the three CTS (cheque truncation system) grids located in New Delhi, Chennai and Mumbai. “It is mandatory for all banks to participate in the special clearing operations on March 31, 2021. All the member banks under the respective CTS grids are required to keep their inward clearing processing infrastructure open during the special clearing hours and maintain sufficient balance in their clearing settlement account to meet settlement obligations arising out of the special clearing,” said the regulator. Besides, it has asked the banks under the respective CTS grids to adhere to the instructions issued to them by the President of the respective CTS grid. Under the CTS system, there is no need to present a cheque physically for clearance, instead an electronic image is being transmitted to the paying branch through the clearing house, with the relevant data. This eliminates the cost of movement of the physical cheques and reduces time for collection and clearance of cheques. All government transactions done by agency banks for 2020-21 must be accounted for within the same financial year, the RBI said. The central bank said all agency banks should keep their designated branches open for over the counter transactions related to government transactions up to the normal working hours on March 31, 2021. “Transactions through National Electronic Funds Transfer (NEFT) and Real Time Gross Settlement (RTGS) System will continue up to 2400 hours as hitherto on March 31, 2021. “Special clearing will be conducted for collection of government cheques on March 31, 2021 for which the Department of Payment and Settlement Systems (DPSS), RBI will issue necessary instructions,” it said. With regard to reporting of central and state government transactions to RBI, including uploading of GST/e-receipts luggage files, the reporting window of March 31, 2021 will be extended and kept open till 1200 hours on April 1, 2021, the RBI said.Find the relation between the given sentences.Statement I: RBI has decided to conduct special clearing exclusively for government cheques across the three CTS grids on March 31, 2021.Statement II: The RBI has instructed all the member banks to maintain sufficient balance in their clearing settlement account.

Direction: Study the following information carefully and answer the question given below.Eight people Amit, Ajay, Pawan, Suraj, Swati, Aditi, Anjali and Ayushi are travelling to different cities – Chile, India, England, Japan, France, Spain, Kenya and Germany but not necessarily in the same order. They also have bank accounts in different banks namely HSBC, ICICI, South Indian, Canara, SBI, HDFC, BOB, and Deutsche bank not necessarily in the same order.The person who is travelling to Kenya has a bank has an account in SBI. Swati is travelling to Chile and has a bank account in HDFC bank. Pawan who is travelling to Germany has a bank account neither in BOB nor in Deutsche bank. Anjali bank account is in South Indian bank. Ayushi is travelling to France and has a bank account in ICICI bank. Amit who is travelling to Japan has a bank account neither in Canara nor in Deutsche bank. Neither Suraj nor Aditi is travelling to Kenya. Suraj who is travelling to Spain doesn’t have a bank account in Deutsche bank. Aditi is travelling to India. Amit has a bank account in HSBC bank.Q.The person who went to Spain has an account in which bank?

Direction: Foreign currency accounts are a type of bank account that allows Indian residents to hold and transact in foreign currencies. These accounts are typically opened with authorized dealers, such as banks or foreign exchange dealers, and can be maintained in various currencies, such as US dollars, Euros, or Japanese yen. Foreign currency accounts are subject to regulations set by the Reserve Bank of India, and certain restrictions may apply, such as limitations on the amount of foreign currency that can be held or transferred. Indian residents may open foreign currency accounts for various reasons, such as to facilitate international trade, receive foreign remittances, or invest in foreign assets.Q. Who is permitted to hold a foreign currency account with a bank outside India for remitting/receiving their salary payable to them in India?

Direction: Study the following information carefully and answer the question given below.Eight people Amit, Ajay, Pawan, Suraj, Swati, Aditi, Anjali and Ayushi are travelling to different cities – Chile, India, England, Japan, France, Spain, Kenya and Germany but not necessarily in the same order. They also have bank accounts in different banks namely HSBC, ICICI, South Indian, Canara, SBI, HDFC, BOB, and Deutsche bank not necessarily in the same order.The person who is travelling to Kenya has a bank has an account in SBI. Swati is travelling to Chile and has a bank account in HDFC bank. Pawan who is travelling to Germany has a bank account neither in BOB nor in Deutsche bank. Anjali bank account is in South Indian bank. Ayushi is travelling to France and has a bank account in ICICI bank. Amit who is travelling to Japan has a bank account neither in Canara nor in Deutsche bank. Neither Suraj nor Aditi is travelling to Kenya. Suraj who is travelling to Spain doesn’t have a bank account in Deutsche bank. Aditi is travelling to India. Amit has a bank account in HSBC bank.Q.Which of the following combination is correct?

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Which Indian public sector bank received RBI approval to hold special rupee vostro accounts for three banks from Sri Lanka?a)State Bank of Indiab)Canara Bankc)Indian Bankd)Punjab National BankCorrect answer is option 'C'. Can you explain this answer?
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