Banking Related Questions and Answers

Topics: Monetary policy, Central bank, Inflation Pages: 50 (7077 words) Published: August 11, 2013
1. What is Bank? Institution which accept deposit for lending Banks are the financial institutions that mobilise the savings of the community and make them available to the people for generating income. A bridge between the user of capital and those who save but can’t use the funds themselves. 2. What are the functions of Banks? 1. Receipts of Deposits: 3 types of deposits- Current deposits, Savings deposits, Term deposits 2. Lending of Money: Cash Credit, Over Draft, Loans and Advances 3. Agency Services: Collection of bills, promissory notes, cheques, acting as trustee, purchase and sales of shares and securities. 4. General Services: Issue of Letter of Credit, Safety Deposits, Bank Drafts.

3. What are the reasons behind Nationalisation of Banks? a. b. c. d. e. Private ownership of commercial banks and concentration of economic powers. Neglect of Agricultural sector. Violation of Norms. Speculative Activities. Neglect of priority sectors.

4. Name of the 14 Banks Nationalized on 19th July, 1969:1. The Central Bank of India 2. Bank of India 3. Punjab National Bank 4. Bank of Baroda 5. United commercial Bank 6. Canara Bank 7. United Bank of India 8. Dena Bank 9. Syndicate Bank 10.Union Bank of India 11.Allahabad Bank 12.Indian Bank 13.Bank of Maharashtra 14.Indian Overseas Bank 5. Name of the 6 Banks Nationalized on 15th April, 1980:1. Andhra Bank 2. Oriental Bank of Commerce 3. Corporation Bank 4. Punjab & Sind Bank 5. New Bank of India 6. Vijaya Bank

7. What are the different Types of Bank? 1. Scheduled Bank:- These are the banks which appear in second schedule of RBI Act, 1934, Section 42(1B) 2. Non Scheduled Bank:- The Banks which are not included in 2nd schedule of RBI Act, 1934. 3. Private Banks:- Banks whose ownership and management rests with private shareholders and whose criterion on index of efficiency means maximum profitability are known as private banks. Examples: Axis Bank ltd, YES Bank ltd etc 4. Foreign Banks:- Banks which have their Head Offices overseas and which are owned, controlled and managed from other countries are Foreign Banks. Examples: Royal Bank of Scotland rtc.

8. What do you mean by Regional Rural Bank? Regional Rural Banks in India are an integral part of the rural credit structure of the country. Since the very beginning, when the Regional Rural Banks in India (RRBs) were established in October 2, 1975, these banks played a pivotal role in the economic development of the rural India. The main goal of establishing regional rural banks in India was to provide credit to the rural people who are not economically strong enough, especially the small and marginal farmers, artisans, agricultural labours, and even small entrepreneurs. The history of regional rural banks in India dates back to the year 1975. It's the Narsinham committee that conceptualized the foundation of regional rural banks in India.

9. What are the functions of Regional Rural Bank? The main purpose of RRB's is to mobilize financial resources from rural / semi-urban areas and grant loans and advances mostly to small and marginal farmers, agricultural labourers and rural artisans. The area of operation of RRBs is limited to the area as notified by GOI covering one or more districts in the State. RRB's also perform a variety of different functions. RRB's perform various functions in following heads • Providing banking facilities to rural and semi-urban areas • Carrying out government operations like disbursement of wages of MGNREGA workers, distribution of pensions etc. • Providing Para-Banking facilities like locker facilities, debit and credit cards. 10. Ownership/Shareholders of Regional Rural Bank Govt. Of India – 50% Sponsor Bank- 35% State Govt. – 15% Sponsorship of RRBs:-

Every RRB is sponsored by Lead Bank of that district where the particular RRB will function. In Tripura, Tripura Gramin Bank is being sponsored by United Bank of India.

11.

Reserve Bank of India:-

The central bank of the country...
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