LATEST POLICY - A FEW QUESTIONS 1-22

Questions based on latest policy

1.         Indian companies in the manufacturing and infrastructure sector including Hotel Sector, which are consistent foreign exchange earners, are allowed to avail of ECBs for repayment of outstanding Rupee loan(s) availed of from the domestic banking system and / or for fresh Rupee capital expenditure, For this purpose the total project cost in Hotel Sector should be:

a) Rs,100 cr or more      b) Rs.250 cr or more      c) Rs.500 cr or more

d) Rs.1000 cr or more    

2.         Rule 9(1A) of the Prevention of Money Laundering Rules, 2005 requires that every banking company, and financial institution, as the case may be, shall identify the beneficial owner and take all reasonable steps to verify his identity. The term "beneficial owner" in this connection, has been defined as (1) the natural person who ultimately owns or controls a client (2) the person on whose behalf the transaction is being conducted (3) a person who exercises ultimate effective control over a juridical person.

            a) 1 to 3 all        b) 1 and 2 only               c) 1 and 3 only               d) 2 and 3 only

3.       Under the Prevention of Money Laundering Rules, 2005 controlling ownership of / entitlement to, means more than _______% of shares or capital or profits of the judicial person where judicial person is a company:

a) 10%              b) 15%              c) 20%              d) 25%

4.       Under the Prevention of Money Laundering Rules, 2005 controlling ownership of / entitlement to, means more than_____% of capital or profits of the judicial person where judicial person is a partnership:

a) 10%              b) 15%              c) 20%              d) 25%

5.         Under the Prevention of Money Laundering Rules, 2005 controlling ownership of! entitlement to, means more than ______            % of capital or profits of the judicial person where judicial person is a unincorporated association  or body of individuals:

a) 10%              b) 15%              c) 20%              d) 25%

6.          Under the Prevention of Money Laundering Rules, 2005 controlling ownership of! entitlement to, means        % or more interest through the settler, the trustee, protector or the beneficiary in case of a trust:

a) 10%              b) 15%              c) 20%              d) 25%

7.            Banks are required to place a    review of ATM transactions to its Board of Directors, indicating, inter alia, the quantum of penalties paid, reasons thereof and the action taken to avoid recurrence of such instances.

a) monthly                     b) quarterly        c) half-yearly      d) yearly

8.           Banks are required to place a     review of ATM transactions to its Board of Directors, indicating, inter alia, the denial of services to the customers at ATM sites, reasons thereof and the action taken to avoid recurrence of such instances.

a) monthly                     b) quarterly                    c) half-yearly                  d) yearly

9.       Rupee export credit interest subvention of 2% is available to banks for specific exporters where the banks allow export credit at _____________ rate of interest:

a) 5%                b) 7%                c) bank rate of RBI        

d) base rate of bank concerned

10.        Rupee export credit interest subvention of 2% is available to banks for a period up to:

a) 31.03.12                    b) 31.03.13                    c) 31,03.14       

d) till the scheme is closed by Govt. of India.

11.        RBI has decided to enhance the ECB limit for Non-bank Finance Company — Infrastructure Finance Companies (NBFC-IFCs) under the automatic route from___% of their owned funds to            % of their owned funds, including the outstanding ECBs.

            a) 25 % to 50 %             b) 25% to 75%               c) 50% to 75%   d) 50% to 100%

12.     In case of ECB obtained by Non-bank Finance Company — Infrastructure Finance Companies (NBFC-IFCS), RBI has decided to reduce the hedging requirement for currency risk from       % of their exposure to ___ of their exposure.

a) 100% to 75%             b) 100% to 50%             c) 75% to 50%  

d) 50% to 25°/a

13.        Submission of which of the following statements relating to Priority Sector Lending by banks to RBI has been discontinued from 01.04.2013 (1) Special Return 1(2) Special Return III (3) Outstanding credit to medium enterprise (4) education and housing loans (5) progress in respect of govt. sponsored schemes.

            a) 1 to 5 all        b) 1 to 4 only     c) 2 to 5 only     d) 3 to 5 only

14.        The time limit for submission of priority sector loan returns for which of the following is not matched:

a) monthly returns to be submitted within 5 days from close of the month

b) quarterly returns to be submitted within 5 days from close of the month

c) yearly statements are to be submitted within 45 days from close of the financial year

d) none of the above

15.         In the context of quarterly review of frauds, the information relating to frauds for the quarters ending June, September and December may be placed before the ______ during
the month following the quarter to which it pertains

a) Management Committee of the Board              b) Audit Committee of the Board

c)Operational Risk Management Committee d) Board of Directors

16.        Banks are required conduct an annual review (for year ended March), of the frauds and place a note before the Board of Directors/Local Advisory Board for information. The reviews should be put up before the end of the next :

a) fortnight         b) month           c) quarter          d) half-year

17.           As per revised directions of RBI on issue of commercial paper, which of the following eligibility criteria for companies is not correctly stated?

a) tangible networth of the company as per latest audited balance sheet is not less than Rs.5 lac

b) company has been sanctioned working capital limits by a bank or FL

c) borrowal accounts of the company are Standard Assets

d) Credit rating of rating agency is minimum A3.

18.           As per revised directions of RBI on issue of commercial paper, which of the following conditions relating to amount of CP is not correct:

a) minimum amount —Rs.5 lac               b) Maximum amount— no limit

            c) Multiple — Rs.1 lac                            d) none of the above

19.           As per revised directions of RBI on issue of commercial paper, which of the following conditions regarding maturity period is correct (1) minimum period is 7 days (2) maximum period is 12 months (3) maturity date will not go beyond the validity period of credit rating.

            a) 1 to 3 all        b) 1 to 2 only     c) 2 and 3 only               d) 1 and 3 only

20.        As per revised directions of RBI on issue of commercial paper, which of the following is correct:

a) commercial paper can be surrendered prematurely at option of the investor

b) loan against security of commercial paper can be allowed

c) company can buy back the commercial paper any time after the minimum maturity period of 7 days

d) none of the above

21.        Within 60% of MSE advances to micro enterprises target for priority sector lending, 40% point loans should be given to micro enterprises with investment in plant and machinery in case of manufacturing enterprises up to Rs.____         and investment in equipment in case of service enterprises up to Rs._____.

            a) 2 lac, 1 lac                b) 5 lac, 2 lac    c) 10 lac, 4 lac               d) 10 lac, 5 lac

22.        Within 60% of MSE advances to micro enterprises target of priority sector lending, 20% point advances can be given to micro enterprises with investment in plant and machinery for manufacturing enterprise above Rs.____           and investment in equipment for servicing enterprises above Rs.      

a) 2 lac, 1 lac                b) 5 lac, 2 lac    c) 10 lac, 4 lac               d) 10 lac, 5 lac

answers

 1.b       2.a       3.d       4.b       5.b       6.b       7.b       8.b       9.b       10.c

11.c     12.a     13.b     14.c     15.b     16.c     17.a     18.c     19.a     20.c

21.c    22.c