The options of cashless payment in India

 

Photo Courtesy: NITI Aayog

 

To ease the digital payments and paving the way for a cashless economy, Government of India has taken multiple steps. It has delegated NITI Aayog to implement digital payments systems and create awareness campaigns to popularize the different modes of digital payment which are currently available.

As part of promoting cashless transactions and converting India into less-cash society, various modes of digital payments are available.

Some digital payment systems you should know are:

Continue reading The options of cashless payment in India

Which committee was constituted in November 2016 to convert 100% Government – Citizen Transactions to the digital platform?

Answer: Amitabh Kant committee

In a transformative attempt to weed out black money and corruption from public life, the Government of India has constituted a Committee of Officers to enable 100 per cent conversion of Government to Citizen (G2C)Transactions to the digital platform.

The Committee is formed under the leadership of NITI Aayog CEO Mr. Amitabh Kant. The main objective of this committee is to identify and implement in the earliest possible time frame user-friendly digital payment options in all sectors of the economy.

This is an integral part of the Governments strategy to transform India into a cashless economy.
Source:
1. http://niti.gov.in/content/digital-payments
2. http://www.thehindu.com/business/Economy/Centre-forms-committee-to-push-cashless-transactions/article16702164.ece

Banking Awareness – Set-01

There are 15 questions in this practice set. With each question, there are 4 options. You have to choose which one of them is correct.

The answer is given with each question. You will find external links with each answer. You can learn further about the topic by visiting those links.

Questions in this set were asked on our Facebook Page. If you’ve come here from our page, in this post you will find the answer to the questions I asked.

If you have any query or feedback, please write it below in the comment box.


1.  What is NOSTRO account?

A. an account which is generally held with a domestic bank on behalf of a foreign bank
B. an account which is generally held by a bank on behalf of a 3rd party bank
C. an account which is generally held with a foreign bank on behalf of a domestic bank
D. None of the above

Answer: C. accounts which are generally held with a foreign bank on behalf of a domestic bank

 

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2. Which of the following bank has signed up as a national supporter for the under 17 FIFA world cup, scheduled to kick start on October 2017?

A. State Bank of India
B. Bank of Baroda
C. Punjab National Bank
D. ICICI Bank

Answer: B. Bank of Baroda

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3. The alphabet ‘B’ in  the acronym CBLO stands for:

A. Banking
B. Borrowing
C. Business
D. Base

Answer: B. Borrowing

 

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4. ___________ is a satellite-based wide area network using VSAT (Very Small Aperture Terminal) technology set up by the RBI in June 1999.

A. RBINET
B. BANKINNET
C. INFINET
D.INDINET

Answer: C. INFINET

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5. What does ‘F’ in the FIMMDA stand for?

A. Financial
B. Future
C. Fixed
D. Federal

Answer: C. Fixed

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6. Which of the following statement is TRUE for the Fixed Income Securities

A. Holders of fixed-income securities are not owners, but the creditors
B. Fixed Income Securities are similar to equity
C. Commercial paper is not an example of Fixed Income Securities
D. None of the above

Answer: A. Holders of fixed-income securities are not owners, but the creditors

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7. Basel III introduced two required liquidity ratios. Choose from the options given below:
I. Liquidity Coverage Ratio
II. Capital Adequacy Ratio
III. Net Stable Funding Ratio
IV. McDonough Ratio

A. I and II
B. II and III
C. I and III
D. II and IV

Answer: C. I and III

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8. What is/are the RBI Guideline(s) for the development of Internet Rate Swaps?

A. Banks can use IRS for hedging and trading both
B.  MIFOR is a benchmark for IRS
C. Under ISDA agreement Banks can opt for dual Jurisdiction i.e., Indian as well as common law
D.  All of the above

Answer: D.  All of the above

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9. Which of the following agencies is associated with the business of mutual fund sector as a regulator?

A. PFRDA
B. FMC
C. SEBI
D. AMFI

Answer: C. SEBI

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10. The first and the foremost mutual fund of India, UTI, was established in:

A. 1960
B. 1963
C. 1966
D. 1969

Answer: B. 1963

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11. Which of the following terms is not used in banking and Finance?

A. Capital gain
B. Blue Chip
C. Market risk
D. Stare decisis

Answer: D. Stare decisis

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12. ECML technology is used in which of the following banking products/services?

A. Home Loans
B. Foreign Exchange Services
C. Digital Wallet
D. Internet Banking

Answer: C. Digital Wallet

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13.Which of the following terms is not used in Economics?

A. Exogenous                          
B. Depreciation
C. Deep Market                    
D. All are Economics term

Answer: D. All are Economics term

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14. Which of the following statements is true?

A. Banks cannot accept demand and time deposits from public
B. Banks can accept only demand deposits from public
C. Banks can accept demand and time deposits only from government
D. Banks can accept both demand and time deposits from public

Answer: D. Banks can accept both demand and time deposits from public

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15. Which of the following bank had the key role in concluding the biggest asset resolution in India with the consummation of the Rs. 16,189 crore takeover of Jaypee Cements by Ultratech?

A. State Bank of India
B. ICICI Bank
C. Axis Bank
D. Punjab National Bank

Answer: B. ICICI Bank

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Q. Which of the following statement is TRUE for the Fixed Income Securities?

Q1- 14 July 2017.png

Answer: A. Holders of fixed-income securities are not owners, but the creditors

Fixed Income Securities are debt instrument where the issuer; a corporation or government; agreed to pay a predetermined amount of interest on a fixed schedule.

Unlike equity where the investor is the owner, the holder or investor has the creditor relationship with the issuer of fixed income securities.

The different types of fixed income securities include government securities (G-Sec), corporate bonds, commercial paper, treasury bills, strips etc.

Learn more:

  1. About Fixed Income Securities-General
  2. INTRODUCTION TO FIXED INCOME SECURITIES

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Which of the following bank has signed up as a national supporter for the under 17 FIFA world cup, scheduled to kick start on October 2017?

Q2- 12 July 2017.png

Answer: B. Bank of Baroda

The Bank of Baroda has signed up as a national supporter for the under 17 FIFA world cup, scheduled to kick start in October 2017. It is the first Indian company to do so.

Learn more: FIFA ropes in Bank of Baroda as first ‘National Supporter’ for the FIFA U-17 World Cup


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Q. What is NOSTRO account?

Q1- 12 July 2017 (1).png

Answer: C. accounts which are generally held with a foreign bank on behalf of a domestic bank

Nostro in Latin literally means ‘ours’. Hence, Nostro account points at – “Our account with you”.

Take for example a bank in India, say Bank of Maharashtra (BoM),  gets a lot many remittances and trade related money sent home from UAE. However, BoM does not have a banking license in the UAE.

So BoM reaches out to a local bank of UAE, say United Emirates Bank, and asks them to open a bank account in BoM’s name, in UAE’s local currency dirham. On this, Bank of Maharashtra can do all sorts of transactions as if they were themselves present in the UAE and operating this account.

Nostro accounts are generally held in a foreign country (with a foreign bank), by a domestic bank (from our perspective, our bank). It obviates that account is maintained in that foreign currency.

In our example, Bank of Maharashtra’s account with United Emirates Bank in UAE.

Learn more:

  1. What are Nostro and Vostro accounts in banking? How are they used in payments and settlements?
  2. NOSTRO, VOSTRO, LORO Accounts

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Q. Which of the following bank had the key role in concluding the biggest asset resolution in India with the consummation of the Rs. 16,189 crore takeover of Jaypee Cements by Ultratech?

Q3- 17 July 2017.png

Answer: B. ICICI Bank

ICICI bank had the key role in concluding the biggest asset resolution in India with the consummation of the Rs. 16,189 crore takeover of Jaypee Cements by Ultratech.

Learn more: 

Bankers Pull Off Largest Asset Resolution With UltraTech-JP Cement Deal


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