Banking And Finance Flashcards
- In September 2023, the Asian Development Bank (ADB) has announced the approval of
capital management reforms that unlocked USD ______________in fresh funding capacity over the
next decades for financing projects in the Asia-Pacific region.
1) 500 billion
2) 300 billion
3) 100 billion
4) 400 billion
5) 200 billion
Answer- 3) 100 billion
Explanation:
The Asian Development Bank (ADB) announced the approval of capital management reforms that are
set to release approximately USD($)100 billion in fresh funding capacity over the next decades for
financing projects in the Asia-Pacific region.
People in Asia and the Pacific, especially those who are poor and vulnerable, are facing severe
challenges due to escalating and interconnected crises.An estimated 155 million people, or
3.9% of the region’s population, lived in extreme poverty as per the report in 2022.
i. This funding is intended to tackle significant Asian challenges, notably climate change.
ii. These reforms were implemented by updating the ADB’s Capital Adequacy Framework (CAF).
iii. This represents a substantial increase of approximately USD10 billion, which representing about a
40% rise in the ADB’s capability to fund various projects, initiatives ,infrastructure, and other
essential sectors in the Asia-Pacific region.
- In September 2023, the Securities and Exchange Board of India (SEBI) extended the deadline
for adding nominees to demat accounts and submitting PAN and KYC details for physical
security holders until _____________.
1) 31st March 2024
2) 31st December 2023
3) 31st January 2024
4) 30th November 2023
5) 30th April 2024
Answer- 2) 31st December 2023
Explanation:
The Securities and Exchange Board of India (SEBI) extended the deadline for adding nominees to
demat accounts and submitting PAN and KYC details for physical security holders until December
31, 2023. SEBI also extended the nomination deadline specifically for mutual fund unit holders until
January 1, 2024.
Extension Deadline for Current Demat Account Holders
The Securities and Exchange Board of India (SEBI) has announced an extension of the deadline
for current demat account holders to select their nominees for an additional three months, now
ending on December 31, 2023.
SEBI has extended the deadline to another three months for mutual fund account holders to
nominate a beneficiary or opt out until January 1,2024. If investors fail to comply, their folios
will be frozen with effect from January 1,2024.
Earlier, the deadline for existing mutual fund holders to provide a choice of nomination was
September 30.
- On the occasion of the 2nd edition of NPS Diwas observed on October 1, 2023, which pension
management company has launched a first-of-its-kind ‘National Pension System (NPS)
Preference Index’?
1) Aditya Birla Sun Life Pension Management
2) HDFC Pension Management
3) ICICI Prudential Pension Fund Management
4) Kotak Mahindra Pension Fund Management
5) SBI Pension Fund Management
Answer- 2) HDFC Pension Management
Explanation:
HDFC Pension Management Company Limited has launched a first-of-its-kind ‘National Pension
System (NPS) Preference Index’ on the occasion of 2nd edition of NPS Diwas which was observed on
1st October 2023.
HDFC Pension also released NPS Preference Index Study which is the industry first spotlight on
NPS.
HDFC Pension Management Company Limited,a subsidiary of HDFC Life Insurance Company
Limited is one of the Pension Fund Managers (PFM’s) appointed by Pension Fund Regulatory
and Development Authority (PFRDA) in India to manage funds for the National Pension System
(NPS).
i. NPS Preference Index Study 2023:
The aim of the survey is to assess consumers’ views on retirement and their awareness,
interest, and contemplation of the NPS.This resulting in the framing NPS Preference Index,
which can be tracked over time.
- Which bank has recently (in Sept ‘23) signed an MoU with Warehousing Development
Regulatory Authority (WDRA) to fund against e-NWRs (electronic Negotiable Warehouse
Receipt)?
1) State Bank of India
2) Bank of Baroda
3) Indian Bank
4) Punjab National Bank
5) Bank of India
Answer- 5) Bank of India
Explanation:
Warehousing Development Regulatory Authority (WDRA) signed a Memorandum of Understanding
(MoU) with the Bank of India (BoI) to fund against e-NWRs (electronic Negotiable Warehouse
Receipt).
i. The MoU was signed in the presence of T.K Manoj Kumar, Chairperson, WDRA, Rajneesh Karnataka,
Managing director (MD) cum Chief Executive Officer (CEO), BoI.
ii. The MoU also aims to provide information to depositors about the benefits, besides doing further
outreach activities to improve agricultural pledge finance in India.
- In September 2023, SBI Life Insurance Company Limited signed a bancassurance pact with
the State Bank of ____________ (state) to offer insurance solutions accessible.
1) Kerala
2) Karnataka
3) Sikkim
4) Tamil Nadu
5) Assam
Answer- 3) Sikkim
Explanation:
SBI Life Insurance Company Limited signed a bancassurance pact with the State Bank of Sikkim
(SBS) to make insurance solutions accessible to the residents of Sikkim.
i. The agreement was signed by P. Wangdi Bhutia, Managing Director, State Bank of Sikkim, and
Jayant Pandey, Regional Director- Bengal region, SBI Life Insurance at the SBS’s headquarters in
Gangtok, Sikkim.
ii. Bancassurance is an agreement between a bank and an insurance company, through which the
insurer can sell its products to the bank’s customers.
- In September 2023, National Bank for Agriculture and Rural Development (NABARD) raised
Rs ___________ by issuing India’s first ‘AAA’ rated Indian Rupee-denominated Social Bonds at a
coupon rate of 7.63%.
1) 3,103.20 crore
2) 5,971.10 crore
3) 1,040.50 crore
4) 4,023.25 crore
5) 2,567.20 crore
Answer- 3) 1,040.50 crore
Explanation:
National Bank for Agriculture and Rural Development (NABARD) raised Rs 1,040.50 crore by
issuing India’s first ‘AAA’ rated Indian Rupee-denominated Social Bonds at a coupon rate of 7.63%.
i. NABARD issued bonds privately to eligible institutional investors, which were listed on the Bombay
Stock Exchange (BSE) on September 29, 2023. The redemption date for the bonds is September 27,
2028 with coupon payments taking place yearly.
ii. A social bond is a type of financial instrument issued by governments, international organisations,
or corporations to raise funds for projects and initiatives that have a positive social impact on society.
- In October 2023, the National Investment and Infrastructure Fund Limited (NIIFL) entered
into a collaboration with the Japan Bank for International Cooperation (JBIC) to launch its first
bi-lateral fund called India-Japan Fund (IJF) of Rs __________.
1) 49 Billion
2) 35 Billion
3) 52 Billion
4) 67 Billion
5) 30 Billion
Answer- 1) 49 Billion
Explanation:
The National Investment and Infrastructure Fund Limited (NIIFL) has entered into a collaboration
with the Japan Bank for International Cooperation (JBIC) to launch its first bi-lateral fund called India-
Japan Fund (IJF) of Rs 49 Billion (USD 600 million).
i. The Fund was established by NIIF Limited (NIIFL), a collaborative investment platform for
international and Indian investors. The fund is anchored by the Government of India and JBIC.
ii. Out of Rs 49 Billion, The Government of India (GoI) will contribute Rs 24 Billion (USD 294 million
(49%)) and JBIC will fund the remaining Rs 25 Billion (USD 306 million (51%)) of the funding target.
iii. JBIC’s equity participation in the Fund is based on the Memorandum of Understanding (MoU)
which was signed between JBIC and NIIFL in November 2022.
- Name the bank that has recently (in Oct ‘23) collaborated with the Outlook Group to launch
“Outlook Money 40After40”, a retirement planning event.
1) ICICI Bank
2) IDFC FIRST Bank
3) IndusInd Bank
4) Kotak Mahindra Bank
5) HDFC Bank
Answer- 2) IDFC FIRST Bank
Explanation:
Outlook Group in collaboration with IDFC FIRST Bank launched a retirement planning
event “Outlook Money 40After40” to spread awareness and create conversations around
retirement planning.
i. “40After40” is a two-day event and expo, which will be held at Jio World Convention Centre in
Mumbai, Maharashtra on 23rd and 24th January, 2024.
ii. IDFC FIRST Bank will spread the need & importance of retirement planning and address the
financial needs of the elderly early.
- Which bank has recently (in Oct ‘23) launched INDIE, a customer centric digital mobile
banking application(app)?
1) Indian Bank
2) ICICI Bank
3) IndusInd Bank
4) Bank of India
5) IDBI Bank
Answer- 3) IndusInd Bank
Explanation:
IndusInd Bank Limited launched INDIE, a customer centric digital mobile banking application(app),
to empower customers with an all-in-one digital financial solution. This hyper-personalized financial
super-app utilises the advanced analytics to provide personalized insights to its customers.
i. The app leverages advanced analytics to provide personalized insights to its customers such as
smart reminders, expense tracking, and spending insights..
ii. The app offers a number of industry-first features, including ultra-flexible products that can be
customized to meet specific needs of the customer.
- Name the company that has recently (in Oct ‘23) merged with the North East Small Finance
Bank Limited (NESFBL) to become Small Finance Bank (SFB).
1) Zerodha
2) Slice
3) InCred
4) Zeta
5) MoneyTap
Answer- 2) Slice
Explanation:
The Reserve Bank of India (RBI) approved the merger of North East Small Finance Bank Limited
(NESFBL) and Bengaluru(Karnataka) based fintech startup Slice (previously known as Slicepay).
i. Following this merger, Slice will become the 1st fintech firm to transform into a Small Finance Bank
(SFB).
ii. All slice entities, including its Non-Banking Financial Company (NBFC) licence, have been merged
with the combined banking entity.
- Name the subsidiary of the Reserve Bank of India (RBI) that has recently (in Oct ‘23)
collaborated with Digital India Bhashini Division to bring linguistic inclusion in the financial
services space.
1) Reserve Bank Information Technology Private Limited
2) Indian Financial Technology and Allied Services
3) Deposit Insurance and Credit Guarantee Corporation of India
4) Reserve Bank Innovation Hub
5) Bharatiya Reserve Bank Note Mudran Private Limited
Answer- 4) Reserve Bank Innovation Hub
Explanation:
Reserve Bank Innovation Hub (RBIH) and the Digital India Bhashini Division
(DIBD/Bhashini) collaborated to explore and develop innovative solutions that foster linguistic
inclusivity in the financial services sector.
i. This partnership aims to extend the reach of digital financial services to users in their native
tongues, ultimately providing seamless banking experiences for everyone.
ii. This collaboration is with respect to the memorandum of Understanding (MoU) which was signed
during the Global Fintech Fest (GFF) held in Mumbai, Maharashtra in September 2023.
iii. Bhashini is a Independent Business Division under Digital India Corporation(DIC) under the aegis
of Ministry of Electronics and Information Technology (MeitY).
Aim: To build a National Public Digital Platform for languages to develop services and products
for citizens by leveraging the power of artificial intelligence and other emerging technologies.
- Name the bank that has recently (in Oct ‘23) launched its digital banking proposition in the
Open 2023 campaign.
1) IndusInd Bank
2) Axis Bank
3) ICICI Bank
4) YES Bank
5) HDFC Bank
Answer- 2) Axis Bank
Explanation:
Axis Bank Limited which is headquartered in Mumbai ,Maharashtra has launched its digital banking
proposition called ‘open by Axis Bank’ in its latest advertising campaign ‘Open 2023’
i. The Open 2023 campaign highlights the top 15 features of the bank’s digital offerings.
ii. The launch of ‘open by Axis Bank’ is a fulfilment of Axis bank’s vision to build Axis 2.0 as a digital
bank within the bank to offer a personalized, intuitive, and hassle-free digital banking experience.
iii. ‘open by Axis Bank’ is a future-ready mobile application that underscores the bank’s pivot towards
enhanced digital offerings.
- In October 2023, _______________ became the first bank in India to issue an ‘Open Network for
Digital Commerce (ONDC) Network Gift Card’.
1) Axis Bank
2) IndusInd Bank
3) YES Bank
4) HDFC Bank
5) ICICI Bank
Answer- 3) YES Bank
Explanation:
YES Bank Limited has become the first bank in India to issue an ‘Open Network for Digital
Commerce (ONDC) Network Gift Card’. The card is powered by Rupay Network.
i. The card is issued in partnership with the ONDC, a government-backed initiative to democratize
digital commerce in India.
ii. This network-wide gift card will help companies with corporate gifting and employee engagement,
and it will also allow consumers to shop at thousands of sellers on the network using any ONDC-
compatible buyer app.
- Which of the following points is ‘Incorrect’ with respect to the 4th Bi-Monthly Monetary
Policy statement for FY24 released by RBI in October 2023?
1) The Reserve Bank of India’s (RBI) Monetary Policy Committee (MPC) has opted to keep the policy
repo rate under the liquidity adjustment facility (LAF) unchanged at 6.50% for the 4th time in a row.
2) The Reverse Repo Rate and the Marginal Standing Facility (MSF) Rate are kept unchanged at 3.35%
& 6.75% respectively.
3) The Bank Rate is kept unchanged at 6.25%.
4) India’s real Gross Domestic Product (GDP) growth is projected at 6.5 per cent for 2023-24.
5) RBI projects that Inflation is expected to average 5.4% in the fiscal year 2023–2024.
Answer- 3) The Bank Rate is kept unchanged at 6.25%.
Explanation:
The Reserve Bank of India (RBI) announced its fourth bi-monthly monetary policy. The RBI Governor
Shaktikanta Das-led Monetary Policy Committee (MPC) meeting on October 4-6, 2023, decided to
keep the rates and stance unchanged.
Policy Repo Rate: For the 4th time in a row, the MPC has opted to keep the policy repo rate
under the liquidity adjustment facility (LAF) unchanged at 6.50%.
The last adjustment to this rate was a 25-basis point increase to 6.50% during the February
2023 meeting.
- Which of the following points is/are ‘correct’ with respect to the initiatives by the Reserve
Bank of India (RBI) in October 2023?
A) The Reserve Bank of India (RBI) has increased the existing limit of gold loans under the
bullet repayment scheme from Rs 4 lakh to Rs 6 lakh in certain urban co-operative banks
(UCBs).
B) Reserve Bank Governor Shaktikanta Das announced the extension of the Payments
Infrastructure Development Fund (PIDF) Scheme by 2 years, until December 31, 2025.
C) RBI proposes to introduce Card-on-File Tokenisation (CoFT) creation facilities directly at
the issuer bank level.
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:
Reserve Bank of India (RBI) announced to double the gold loan limit under the bullet repayment
scheme for Urban Cooperative Banks (UCBs). Monetary ceiling for gold loans under this scheme
increased from Rs. 2.00 lakh to Rs. 4.00 lakh for UCBs that meet Priority Sector Lending (PSL) target
and sub targets as on March 31, 2023.
Reserve Bank Governor Shaktikanta Das announced the extension of the Payments
Infrastructure Development Fund (PIDF) Scheme by 2 years, until December 31, 2025.
RBI proposes to introduce Card-on-File Tokenisation (CoFT) creation facilities directly at the
issuer bank level.Currently, Card-on-File (CoF) tokens can only be created through a
merchant’s application or webpage.
RBI may consider Open Market Operations (OMO) sales of government securities as a strategy
to manage liquidity in the financial system.OMO sales will be conducted through auctions and
not via Negotiated Dealing System-Order Matching (NDS-OM) platform.
The Reserve Bank of India (RBI) has granted permission to non-banking financial
companies(NFBCs) categorized as middle layer and base-layer entities to use credit risk
mitigation tools. This enables them to offset their exposure (protect themselves from financial
risk) using eligible credit risk transfer instruments.
Existing guidelines allow offsetting exposures(practice of balancing or reducing financial risks)
with credit risk transfer instruments for Non-Banking Financial Company (NBFCs) in the Upper
Layer (UL).
- Name the bank/organisation that has recently (in Oct ‘23) approved a USD 200 million loan
to strengthen flood and riverbank erosion risk management in Assam, India.
1) World Bank
2) Asian Development Bank
3) United Nations Environment Programme
4) United Nations Framework Convention on Climate Change
5) African Development Bank
Answer- 2) Asian Development Bank
Explanation:
The Asian Development Bank (ADB) has approved a USD 200 million loan to strengthen flood and
riverbank erosion risk management along the 650-kilometer (km) long main stem of the Brahmaputra
River in Assam, India.
i. The Project activities will be led, managed, and coordinated by the Flood and River Erosion
Management Agency of the Assam Government.
ii. The Water Resources Department of the Government of Assam will implement the works and the
Assam Agroforestry Development Board will use nature-based solutions.
iii. The Brahmaputra Board, the Assam State Disaster Management Authority, and the Assam Inland
Water Transport Development Society will be partner agencies of the project.
- Which company has recently (in Oct ‘23) launched a mobile app for 54EC Bonds Investors?
1) REC Limited
2) Power Grid Corporation of India
3) Indian Railway Finance Corporation
4) Power Finance Corporation Limited
5) Indian Oil Corporation Limited
Answer- 1) REC Limited
Explanation:
REC Limited (formerly Rural Electrification Corporation Limited) launched SUGAM REC, a mobile
app for its current and future investors in REC’s 54EC Capital Gain Tax Exemption Bonds.
REC Limited is a Maharatna Central Public Sector Enterprise(CPSE) under the Ministry of
Power.
i. SUGAM REC offers the ability to view complete details of their investment in REC 54EC Bonds, including the investment amount, interest rate, and maturity date.
ii. Section 54EC bonds, also known as Capital gain bonds, are fixed income instruments which provide capital gains tax exemption.
- Name the bank that has recently (in Oct ‘23) launched a Mobile Handheld Device to provide
banking services to financial inclusion customers.
1) Bank of Baroda
2) ICICI Bank
3) State Bank of India
4) HDFC Bank
5) Bank of India
Answer- 3) State Bank of India
Explanation:
The State Bank of India (SBI) has launched a “mobile handheld device” for its financial inclusion
customers including senior citizens, differently-abled and the infirm. The device is designed to
enhance accessibility and convenience for customers who live in remote areas or have difficulty
visiting SBI branches.
i. The device will initially offer five core banking services which account for approximately 75 percent
of the total transactions that SBI’s CSPs conduct.
Cash withdrawal
Cash deposit
Fund transfer
Balance inquiry
Mini statements
- Name the insurance company that has recently (in Oct ‘23) introduced surrogacy cover and
oocyte donor cover to its women-centric policy.
1) Care Health Insurance
2) Star Health and Allied Insurance
3) Aditya Birla Health Insurance
4) Niva Bupa Health Insurance
5) Manipal Cigna Health Insurance
Answer- 2) Star Health and Allied Insurance
Explanation:
On October 9, 2023, Star Health and Allied Insurance introduced surrogacy cover and oocyte
donor cover to its women-centric policy namely Star Women Care Insurance Policy at no extra
charge for policyholders.
i. This inclusion will address the demand in assisted reproduction treatment, and extend health
insurance coverage to surrogate mothers and oocyte donors.
ii. The Surrogate Mother & Oocyte Donor Cover is applicable for adults 25 to 35 years. The sum
insured under this is available up to Rs. 1 Crore.
- Which bank has recently (in Oct ‘23) partnered with Social Worth Technologies Private
Limited (Fibe) to launch India’s first-ever numberless credit card?
1) Axis Bank
2) YES Bank
3) HDFC Bank
4) ICICI Bank
5) IndusInd Bank
Answer- 1) Axis Bank
Explanation:
Axis Bank Limited and Social Worth Technologies Private Limited (Fibe) (formely known as
EarlySalary) have partnered to launch India’s first-ever numberless credit card called Fibe Axis
Bank Credit Card.
i. The card, powered by Rupay, also allows the customer to link this credit card to Unified Payments
Interface (UPI).
ii. The Fibe Axis Bank Credit Card offers financial solutions by targeting tech-savvy Generation Z
(people born between 1996 and 2010) of India.
iii. The card does not have any card number, expiry date, or Card Verification Value (CVV) printed on
it.
The cardholders can access their card details in Fibe mobile application (App).
- Which company has recently (in Oct ‘23) received the first installment of investment of Rs.
300 crore from the International Finance Corporation (IFC) for its Electric Vehicle (EV)
division?
1) Kinetic Green
2) Euler Motors
3) Mahindra Last Mile Mobility
4) Piaggio Vehicles
5) Atul Auto
Answer- 3) Mahindra Last Mile Mobility
Explanation:
Mahindra Last Mile Mobility (MLMML), a subsidiary of Mahindra & Mahindra Ltd. (M&M) received
the first installment of investment of Rs. 300 crore from the International Finance Corporation
(IFC) for its Electric Vehicle (EV) division. This investment is IFC’s first in an EV maker in India.
i. With this transaction, MLMML has ceased to be a wholly owned subsidiary of Mahindra with effect
from 9th October 2023, while it continues to be a subsidiary of the company.
ii. In March 2023, IFC committed to investing Rs. 600 Crore (in one or more installments) at a
valuation of up to Rs. 6020 Crore, in a new company housing the last mile mobility division of
Mahindra Group.
