Banking And Finance Flashcards
- Which payment bank has recently (in July ‘23) approved the proposal for the transition of the Bank into a Small Finance Bank (SFB) licence?
1) Airtel Payment Bank
2) India Post Payment Bank
3) Fino Payments Bank
4) Jio Payment Bank
5) Paytm Payment Bank
Answer- 3) Fino Payments Bank
Explanation:
On 28th July 2023, the board of Fino Payments Bank Ltd, a fully owned subsidiary of Fino Paytech
Ltd approved the proposal for the transition of the Bank into a Small Finance Bank (SFB) licence.
i. The board has also formed a committee to explore the possibility of group corporate restructuring
and evaluate the implications and other considerations.
ii. The bank received a letter from holding company Fino PayTech Ltd, regarding a group corporate
restructuring proposal, following which the board formed a committee.
- Which of the following points is/are “correct” with respect to the ‘Sectoral Deployment of
Bank Credit – June 2023‘ report released by the Reserve Bank of India (RBI) in July 2023?
A) As per the report, a Year-on-Year (Y-o-Y) growth of non-food bank credit to 18.5% in June
2023 as compared with 14% in June 2022.
B) The food bank credit shows a decline of -25.4% in June 2023 as compared to a decline of -
55% in June 2022.
C) The Total Bank Credit (Food Credit + Non-food Credit) grew to 16.2% in June 2023 from
14.5% in June 2022.
1) Only A
2) Only A & B
3) Only B & C
4) Only A & C
5) All A, B & C
Answer- 3) Only B & C
Explanation:
On July 31, 2023, the Reserve Bank of India (RBI) released a report ‘Sectoral Deployment of Bank Credit – June 2023‘ showcasing a Year-on-Year (Y-o-Y) growth of non-food bank credit to 16.3% in June 2023 as compared with 15% in June 2022.
• This rise is due to the strong demand for credit from sectors such as services, retail and agriculture, and allied activities.
i. On the other hand, the food bank credit shows a decline of -25.4% in June 2023 as compared to a decline of -55% in June 2022.
ii. The Total Bank Credit (Food Credit + Non-food Credit) grew to 16.2% in June 2023 from 14.5% in
June 2022.
iii. The credit growth in the agriculture and allied activities sector showed significant improvement, increasing to 19.7% (y-o-y) in June 2023 from 12.9% in June 2022.
iv. In June 2023, the credit growth to the industry sector registered a positive trend, growing by 8.1% (y-o-y)), although slightly lower than the 9.5% recorded in June 2022.
- Name the company that has recently (in July ‘23) introduced two new cutting-edge payment
devices, the Pocket Soundbox and Music Soundbox.
1) Freecharge
2) PhonePe
3) Paytm
4) Razorpay
5) BharatPe
Answer- 3) Paytm
Explanation:
On July 31, 2023, Paytm, owned by One97 Communications Ltd (OCL), introduced two new cutting-
edge payment devices, the Paytm Pocket Soundbox and Paytm Music Soundbox. Both devices are
equipped with 4G capabilities, providing enhanced convenience for on-the-go merchants.
i. About Paytm Pocket Soundbox: It is a first-of-its-kind ‘Made in India’ portable device as small as a
debit card to empower on-the-go merchants with instant audio payment alerts. This easy-to-carry
device has all the features of Paytm Soundbox.
ii. About Paytm Music Sound Box: It is a unique device that allows merchants to play music from their
mobile phones via Bluetooth while managing payment transactions. It serves both as a speaker for
payment notifications and a Bluetooth music player.
- Which regulatory body of Government of India has recently (in July ‘23) released a circular
stating that Market Infrastructure Institutions (MIIs) should set up a common Online Dispute
Resolution (ODR) portal?
1) Small Industries Development Bank of India
2) Reserve Bank of India
3) Insurance Regulatory and Development Authority
4) Securities and Exchange Board of India
5) National Bank for Agriculture and Rural Development
Answer- 4) Securities and Exchange Board of India
Explanation:
On 31st July 2023, Security market regulator, Securities and Exchange Board of India(SEBI) released a
circular stating Market Infrastructure Institutions (MIIs) such as stock exchanges, depositories and
clearing corporations should set up a common Online Dispute Resolution (ODR) portal to resolve disputes involving investors, listed companies, designated intermediaries and regulated entities.
i. Market participants such as all listed companies, specified intermediaries and regulated entities should enrol in the portal.
ii. Essential features and functionalities will be integrated into the ODR Portal to facilitate the registration of investors and market participants, the submission of complaints, and the uploading of
relevant documents or papers related to the dispute.
iii. The portal will include a status update facility that retrieves information from the ODR Institution concerning the progress of the complaint.
- Name the bank that has recently (in July ‘23) hosted the Fintech Growth Program.
1) RBL Bank
2) Karnataka Bank
3) Kotak Mahindra Bank
4) Axis Bank
5) Karur Vysya Bank
Answer- 2) Karnataka Bank
Explanation:
Karnataka Bank Limited, a leading ‘A’ Class Scheduled Commercial Bank in India, hosted the first
edition of ‘KBL – FinOne’, “A Fintech Growth Program” in Bengaluru, Karnataka.
i. The objective is to forge collaborations to develop innovative business models, providing seamless
banking experience & offering a complete product suite.
ii. Srikrishnan H is the Managing Director(MD) and Chief Executive Officer(CEO) of the bank.
- Name the fintech company that has recently (in July ‘23) collaborated with the National
Payments Corporation of India (NPCI), to introduce RuPay credit card-based Unified Payments
Interface (UPI) payments.
1) CRED
2) PhonePe
3) Razorpay
4) Paytm
5) Freecharge
Answer- 1) CRED
Explanation:
CRED, a Bengaluru (Karnataka) based fintech company, in collaboration with the National Payments
Corporation of India (NPCI), introduced RuPay credit card-based Unified Payments Interface (UPI)
payments for CRED members.
i. Multiple payment options for UPI will be now available for the CRED members such as linking their
Rupay Credit Card, Peer-to-Peer (P2P), Scan and Pay, and paying on online merchants.
Note: Currently, the CRED app is the 4th most preferred UPI app.
- In August 2023, the Reserve Bank of India (RBI) sanctioned the Scheme of Amalgamation of
the _______________ (co-operative Bank) with Rajadhani Co-op. Urban Bank Ltd.
1) Chaitanya Co-Operative Urban Bank
2) Gayatri Co-Operative Urban Bank
3) Adarsh Cooperative Urban Bank
4) Navanirman Co-operative Urban Bank
5) A.P. Mahesh Co-Operative Urban Bank
Answer- 4) Navanirman Co-operative Urban Bank
Explanation:
The Reserve Bank of India (RBI) sanctioned the Scheme of Amalgamation of The Navanirman Co-
operative Urban Bank Ltd., Hyderabad, Telangana with Rajadhani Co-op. Urban Bank Ltd.,
Hyderabad, Telangana. The Scheme of Amalgamation is with effect from August 3rd, 2023.
i. The Navanirman Co-operative Urban Bank Ltd branch (Hyderabad, Telangana) will function as a
branch of the Rajadhani Co-op. Urban Bank Ltd (Hyderabad, Telangana) with effect from August 03,
2023.
ii. The Scheme has been sanctioned in the exercise of the powers conferred under Sub-Section (4) of
Section 44A read with Section 56 of the Banking Regulation Act, 1949.
- Name the bank that has recently (in August ‘23) partnered with Kiwi to launch ‘Credit
on Unified Payment Interface (UPI)’ on RuPay Credit Cards.
1) YES Bank
2) Axis Bank
3) ICICI Bank
4) HDFC Bank
5) IndusInd Bank
Answer- 2) Axis Bank
Explanation:
On 2nd August 2023, Axis Bank, India’s third-largest private sector bank in collaboration with
National Payment Corporation of India (NPCI), partnered for the first time with Kiwi, the
revolutionary credit on Unified Payment Interface (UPI) platform to launch the Axis KWIK virtual
credit card that offers credit card rewards along with the convenience of UPI’s fast and secure
payment for seamless online and offline transactions.
i. This functionality enables users to conduct merchant payments within the Kiwi app utilising their
credit cards through UPI, resulting in a virtualized payment encounter that eliminates the necessity
for physical cards.
ii. The partnership offers a complete “Credit on UPI” platform on the RuPay network.
- Which of the following points is/are “correct” with respect to the step taken by the Small
Industries Development Bank of India (SIDBI) in August 2023?
A) SIDBI, partnered with the Centre for Innovation, Incubation and Entrepreneurship
(CIIE.CO), Indian Institutes of Management (IIM) Ahmedabad, Gujarat (IIM-A)’s startup
incubator and investor, to set up a SIDBI Accelerator Fund, at IIMA’s CIIE.CO.
B) SIDBI and IIMA’s CIIE.CO jointly established the fund with a total corpus of Rs.40 crore in
which SIDBI is contributing Rs.20 crore to the fund and CIIE.CO is contributing the remaining.
C) SIDBI has participated as an anchor investor in the Promising Lenders Fund (PLF) managed
by Vivriti Asset Management Private Limited (VAM) with an aggregate target corpus of Rs. 700
crore in two tranches.
1) Only A
2) Only A & B
3) Only B & C
4) Only A & C
5) All A, B & C
Answer- 5) All A, B & C
Explanation:
The Small Industries Development Bank of India (SIDBI), partnered with the Centre for Innovation,
Incubation and Entrepreneurship (CIIE.CO), Indian Institutes of Management (IIM) Ahmedabad,
Gujarat (IIM-A)’s startup incubator and investor, to set up a SIDBI Accelerator Fund, at IIMA’s
CIIE.CO.
• The objective of establishing the Accelerator Fund is to provide support and extend seed
investment to early-stage enterprises, especially for deep technologies start-ups in India.
• This collaboration is a part of SIDBI’s “India of Tomorrow” initiative, which intends to
strengthen India’s developmental and funding ecosystem for early-stage start-ups.
i. SIDBI and IIMA’s CIIE.CO jointly established the fund with a total corpus of Rs.40 crore.
ii. SIDBI is contributing Rs.20 crore to the fund and CIIE.CO is contributing the remaining Rs.20 crore.
iii. Small Industries Development Bank of India (SIDBI) has participated as an anchor investor in the
Promising Lenders Fund (PLF) managed by Vivriti Asset Management Private Limited (VAM), a part
of Chennai (Tamil Nadu)-based Vivriti Group, with an aggregate target corpus of Rs. 700 crore in two
tranches.
- Which Life Insurance company has recently (in August ‘23) launched a ‘Guarantee of Life
Dreams (G.O.L.D)’ Plan to provide policyholders with a regular long-term income option?
1) Tata AIA Life Insurance
2) SBI Life Insurance
3) IndiaFirst Life Insurance
4) HDFC Life Insurance
5) Max Life Insurance
Answer- 3) IndiaFirst Life Insurance
Explanation:
On 31st July 2023, IndiaFirst Life Insurance Company Limited (IndiaFirst Life), launched a new plan
“IndiaFirst Life Guarantee of Life Dreams (G.O.L.D.)” a non-linked, non-participating, individual life
insurance plan is designed to provide policyholders with a regular long-term income option.
i. The highlight of this product is that one can plan to receive future income from the end of the first
month itself.
ii. The plan offers Premium Paying Terms (PPT), with options of 6 years, 8 years, and 10 years for a
policy tenure of 30 years or 40 years.
- Name the Bank that has recently (in July ‘23) partnered with Tiger Fintech Private Limited
to launch a co-branded credit card Powered by Visa.
1) IndusInd Bank
2) YES Bank
3) Axis Bank
4) ICICI Bank
5) HDFC Bank
Answer- 1) IndusInd Bank
Explanation:
On 3rd August 2023, IndusInd Bank Ltd. and Tiger Fintech Private Limited, a Bajaj Capital Group
company, announced the launch of the ‘IndusInd Bank Tiger Credit Card’, a co-branded credit card powered by Visa Inc (Visa), the global digital payments technology company, to give the best-in-class
credit card access to the customers, to meet their lifestyle requirements.
i. The card offers a ‘Magnificent Rewards Program’, where customers earn up to 6X accelerated
rewards.
ii. Cardholders will also be able to convert their rewards points to air miles (by redeeming the reward
points for flight tickets) and enjoy discounted foreign currency markup of 1.5%, which can lead to
considerable savings on their international expenses.
- Which regulatory body of India has recently (in August ‘23) collaborated with Association
of Portfolio Managers in India (APMI) to establish performance audit standards for portfolio
management services (PMS) providers?
1) Reserve Bank of India
2) Insurance Regulatory and Development Authority
3) Small Industries Development Bank of India
4) National Bank for Agriculture and Rural Development
5) Securities and Exchange Board of India
Answer- 5) Securities and Exchange Board of India
Explanation:
On August 2, 2023, the Securities and Exchange Board of India (SEBI) and Association of Portfolio
Managers in India (APMI) collaboratively established performance audit standards for portfolio
management services (PMS) providers, effective from October 1, 2023.
i. This information by SEBI is provided in exercise of powers conferred under Section 11(1) of the
SEBI Act, 1992, read with the provisions of Regulation 43 of SEBI (Portfolio Managers) Regulations,
2020, to protect the interest of investors in securities and to promote the development of the
securities market.
- In August 2023, the Securities and Exchange Board of India (SEBI) allowed Offer For Sale
(OFS) for units of private listed Infrastructure Investment Trusts (InvlTs) through a stock
exchange mechanism in exercise of powers conferred under ________ (Section) of the SEBI Act,
____________.
1) Section 15 (1); 1992
2) Section 12 (2); 1990
3) Section 11(1); 1992
4) Section 12 (2); 1994
5) Section 11(1); 1990
Answer- 3) Section 11(1); 1992
Explanation:
The Securities and Exchange Board of India (SEBI) allowed Offer For Sale (OFS) for units of private listed Infrastructure Investment Trusts (InvlTs) through a stock exchange mechanism. This information by SEBI is provided in exercise of powers conferred under Section 11(1) of the SEBI Act, 1992.
i. Offer For Sale (OFS) mechanism is allowed for the sale of units of both Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) by their respective sponsors or sponsor group entities. Additionally, other unit holders of listed REITs can also use the OFS mechanism to sell their units.
ii. Now, it has been decided to modify the framework to allow OFS for units of private listed InvITs.
iii. OFS is a method that allows existing investors (promoters, shareholders, etc.) of a company or trust to sell their securities (shares or units) to the public through the stock exchange platform.
- Which state has recently (in August ‘23) received Rs 1,974.07 crore funding from the
National Bank for Agriculture And Rural Development (NABARD) under the Rural
Infrastructure Development Fund (RIDF) for 2023-24?
1) Bihar
2) Uttar Pradesh
3) Rajasthan
4) Gujarat
5) Odisha
Answer- 3) Rajasthan
Explanation:
National Bank for Agriculture And Rural Development (NABARD) has sanctioned Rs 1,974.07 crore
to the Government of Rajasthan under the Rural Infrastructure Development Fund (RIDF) for 2023-
24. A budget of Rs.930.44 crore has been sanctioned for 3 rural drinking water supply projects in the
districts of Rajasthan namely Ajmer, Jalore, and Kota.
i. Further, Rs.926.48 crore was sanctioned for the construction of 676 rural roads in the desert and
tribal areas of Rajasthan. Earlier, Rs.117.15 was allocated for the establishment of 104 veterinary
hospitals and 431 sub-centres in all the districts of Rajasthan.
ii. The drinking water supply projects are expected to provide clean and potable water to 2.87 lakh
households in 2,500 villages, whereas rural road projects will improve connectivity in 1,229 villages
across 12 districts.
iii. NABARD is also supporting the Rajasthan government to bring 4.28 lakh hectares under micro-irrigation with support of Rs.740 crore from the Micro Irrigation Fund.
- Which company has recently (in August ‘23) introduced Card Verification Code (CVC)-free
online transactions for customers?
1) Visa Inc
2) Mastercard
3) American Express
4) Capital One
5) Discover Card
Answer- 2) Mastercard
Explanation:
On 7th August 2023, Mastercard introduced Card Verification Code (CVC)-free online transactions
for customers who have tokenized their debit and credit cards on merchant platforms.
i. The move aims to reduce the checkout time and make CVC-free payment to enhance the payment
security.
ii. Mastercard’s token-based transactions leverage 3 key factors that ensure a high degree of safety
and security which includes:
• Enhanced Security Features
• Authenticated User Identity Check
• Domain Control
- Name the Non-Banking Financial Company (NBFC) that has recently (in August ‘23) signed a
USD 15 million funding deal with Swiss impact investor responsAbility Investments AG to
promote green financing in India.
1) Lendingkart Finance
2) Fullerton India
3) Electronica Finance
4) Avendus Capital
5) Indiabulls Group
Answer- 3) Electronica Finance
Explanation:
Swiss impact investor responsAbility Investments AG signed a USD 15 million funding deal with
Non-Banking Financial Company (NBFC) Electronica Finance to promote green financing in India in
line with its sustainability goal.
i. Electronica Finance is headquartered in Pune, Maharashtra, and is a part of the SRP Electronica
group. It is supported by the Small Industries Development Bank of India (SIDBI).
ii. Electronica Finance will use the funding for financing energy efficient machines and promoting
rooftop solar installation. It has already received USD 7.5 million from responsAbility in July 2023 will
get remaining part in later 2023. The fund was raised at 11.4%.
- Name the company that has recently (in August ‘23) partnered with ICICI Lombard General
Insurance along with other partners to provide car and two-wheeler insurance plans.
1) Shriram Finance Limited
2) Cholamandalam Investment and Finance Limited
3) Mahindra and Mahindra Financial Services Limited
4) Bajaj Finance Limited
5) Muthoot Finance Limited
Answer- 4) Bajaj Finance Limited
Explanation:
Bajaj Finance Limited (BFL) has partnered with ICICI Lombard General Insurance along with
other partners to provide car and two-wheeler insurance plans on the platform Bajaj Finance
Insurance Mall.
i. The ICICI Lombard Car and Two-wheeler Insurance policies offer comprehensive damage coverage,
(including own and third-party damage), personal accident cover, No Claim Bonus (NCB) to vehicle
owners and vehicles.
ii. ICICI Lombard also offers a range of add-on covers to help customers enhance their vehicle
insurance such as NCB protector cover, 24×7 roadside assistance cover, Zero depreciation add-on
cover, Engine protection add-on cover.
- Which Insurance company has recently (in August ‘23) entered into a bancassurance tie-up
with Standard Chartered Bank (SCB) to sell health Insurance Products?
1) Aditya Birla Health Insurance
2) Reliance General Insurance
3) Star Health & Allied Insurance
4) Care Health Insurance
5) Bajaj Allianz Life Insurance
Answer- 3) Star Health & Allied Insurance
Explanation:
Star Health & Allied Insurance Co. Ltd.,(Star Health) India’s leading private Health Insurance
company has entered into a strategic corporate bancassurance tie-up with Standard Chartered Bank
(SCB), a reputed international bank to enhance the accessibility of health insurance products through
the bank’s extensive distribution network.
i. The SCB, with 100 branches spread across 42 cities, will function as a convenient single point of
access for customers seeking health insurance.
ii. The agreement also provides top-tier services that align with the distinct needs of India’s affluent
clientele.
- In August 2023, the Securities and Exchange Board of India (SEBI) mandated Foreign
Portfolio Investors (FPIs) to place at least ______ of their trades in corporate bonds through the
Request For Quote (RFQ) platform of stock exchanges w.e.f. October 1, 2023.
1) 25%
2) 40%
3) 20%
4) 10%
5) 30%
Answer- 4) 10%
Explanation:
On August 7, 2023, the Securities and Exchange Board of India (SEBI) mandated Foreign Portfolio
Investors (FPIs) to place at least 10% of their trades in corporate bonds through the Request For
Quote (RFQ) platform of stock exchanges w.e.f. October 1, 2023.
• This information by SEBI is provided in exercise of its power conferred under
Section 11(1) of the SEBI Act 1992, read with the provisions of
Regulation 20(5) and Regulation 44 of SEBI (Foreign Portfolio Investors) Regulations,
2019 to protect the interests of investors in securities and to promote the development of, and
to regulate the securities markets.
- The Securities and Exchange Board of India (SEBI) has recently (in August ‘23) decreased
the validity period of approval for Alternative Investment Funds (AIFs) and Venture Capital
Funds (VCFs) to make overseas investments to 4 months from _______(months).
1) 7 months
2) 6 months
3) 10 months
4) 8 months
5) 12 months
Answer- 2) 6 months
Explanation:
The Securities and Exchange Board of India (SEBI) has decreased the validity period of approval for
Alternative Investment Funds (AIFs) and Venture Capital Funds (VCFs) to make overseas
investments to four months from six months.
i. If these funds do not utilize their investment limits within this timeframe, SEBI has the authority to
allocate the unutilized limits to other applicant AIFs and VCs.
ii. This information by SEBI is provided in exercise of its power conferred under Section 11(1) of the
SEBI Act 1992.
