INDIAN ECONOMY MOCK TEST – CHAPTER 19

In the context of non banking financial institutions, consider the following statements –

1. They lead to credit creation.
2. They are regulated by Banking Regulation Act.

Which of the above statements is/are CORRECT ?

Consider the following statements –

1. All banks included in the 2^nd Schedule to the Reserve Bank of India (RBI) Act, 1934 are Scheduled Banks.
2. The Scheduled Commercial Banks account for approximately 88 percent of India’s banking system.

Which of the above is/are CORRECT ?

Which of the followings is/are applicable to Foreign Banks in India –

1. RBI Act, 1934
2. Banking Regulation Act, 1949
3. Companies Act, 1956
4. Foreign Exchange Management Act, 1999

In the context of regional rural banks, consider the following statements –

1. They are set up in India on the recommendations of Narasimhan Committee.
2. They cannot have branches in urban areas.
3. Sponsor bank is the biggest share holder.

Which of the above is/are CORRECT ?

In the context of differentiated banks in India, consider the following statements –

1. The minimum capital requirement is 100 crore.
2. For the first five years, the stake of the promoter should remain at least 40 percent.
3. Foreign shareholding is not allowed.

Which of the above is/are CORRECT ?

In the context of payment banks, consider the following statements –

1. These can issue loans and credit cards.
2. These can accept demand deposits.
3. These are not required to maintain CRR.
4. They are required to open atleast 25 percent of their branches in rural areas.

Which of the above statements is/are CORRECT ?

In the context of small finance banks, consider the following statements –

1. A minimum capital of INR 100 crore is required.
2. They need to open atleast 25 percent of their branches in rural areas.
3. Non Banking Financial Corporations (NBFCs) can de-facto act as small finance banks.
4. These need to maintain various reserve ratios stipulated by RBI.

Which of the above statements is/are CORRECT ?

In the context of cooperative banks, which of the following statements is/are CORRECT ?

1. They are regulated by RBI Act.
2. They provide services to only their members.
3. They are eligible to be listed in the stock market.

In the context of NIDHI company, which of the following statements is/are CORRECT ?

1. It is a company registered under the Companies Act, 2013.
2. It lends money only to its members.
3. It is regulated by the Reserve Bank of India.

Which of the following statements is INCORRECT ?