Banking Awareness PYQs

• Public sector banks saw their network of branches start to decline after peaking in the March quarter of 2017 and by September this year, they recorded a net decline of 4,389 branches.
• Private sector banks, on the other hand, have increased their count by over 7,000 in the same period, showed data from the Reserve Bank of India (RBI).
• As of 30 September, public sector banks had 85,166 branches, while private lenders had 34,516 branches.
• IDBI Bank has been excluded from this count because it earlier used to be a public sector bank and was, in January 2019, classified as a private sector lender after insurance behemoth Life Insurance Corp. Of India (LIC) acquired a majority stake.

The correct answer is Billie Jean King.

Key Points

• Former world tennis champion Billie Jean King says writing “All In: An Autobiography” was a labor of love that took her four years to complete.
• Former world tennis champion and social activist Billie Jean King is one of the most iconic athletes in American history.
• With 39 Grand Slam titles and 20 career wins at Wimbledon, King was named one of the “100 Most Important Americans of the 20^th Century” by LIFE magazine.
• King joins Washington Post opinions writer Jonathan Capehart to share stories from her remarkable life and her ongoing commitment to equality, penned in her new book, “All In: An Autobiography.”

The correct answer is Middle East and North Africa​.

Key Points

• The World Inequality Report 2022 has been released by the Paris-based World Inequality Lab.
• It pegged India to be among the most unequal countries in the world.
• While the bottom half of the population in India earns Rs 53,610, the top 10% earns twenty times more at Rs 11,66,520.
• MENA (Middle East and North Africa) are the most unequal region in the world and Europe has the lowest inequality levels.

Important Points

• The report is authored by Lucas Chancel and coordinated by Thomas Piketty among others.
• As per the report, the richest 10% of the global population currently takes 52% of global income, whereas the poorest half of the population earns 8% of it.
• The poorest half of the global population barely owns any wealth at all, possessing just 2% of the total.
• In contrast, the richest 10% of the global population own 76% of all wealth.
• The private wealth increase seen in India over this time is also remarkable which is up from 290% in 1980 to 560% in 2020.
• Between 2021 and 2019, the wealth of the top 0.001% grew by 14%, while average global wealth is estimated to have risen by just 1%.
• The global billionaire wealth increased by more than 50% between 2019 and 2021.

The correct answer is Strengthening Multilateralism for Shared Growth.

Key Points

• The 13^th ASEM (Asia–Europe Meeting) Summit is being held virtually from 25 November 2021.
• The theme of the two-day summit is Strengthening Multilateralism for Shared Growth.
• Vice President Venkaiah Naidu is leading the Indian delegation.
• This Summit will also mark the 25^th anniversary of the ASEM process.
• It is being hosted by Cambodia as ASEM Chair.
• ​Vice President will also participate in the First Plenary Session as well as the Retreat Session of the Summit.
• He will exchange views on areas like reformed multilateralism, fight against pandemic and post-pandemic recovery, mitigating global climate change, Sustainable Development Goals SDG, maritime safety, and security.

Additional Information

• ASEM:
• It is a platform for the countries in Asia and Europe to exchange views on regional and global issues and strengthen cooperation in a wide range of areas.
• The ASEM grouping comprises 51 member countries and 2 regional organizations - European Union and ASEAN.
• Countries in the grouping represent 65 percent of global GDP, 60 percent of the global population, 75 percent of global tourism, and 55 percent of global trade.
• The ASEM Summit is a biennial event.
• India joined the ASEM process in 2006.
• The 7^th ASEM Summit held in 2008 saw the first Summit level participation from India.

The correct answer is International Development Association.

Key Points

• International Development Association institutions was formed in 1960 to assist the poor countries which could not afford to borrow capital at market rates.
• It is an international financial institution that offers concessional loans and grants to the world's poorest developing countries.
• It is a member of the World Bank Group and is headquartered in Washington, D.C. in the United States.
• It was established in 1960 to complement the existing International Bank for Reconstruction and Development by lending to developing countries that suffer from the lowest gross national income, from troubled creditworthiness, or from the lowest per capita income.
• Its aim is to assist the poorest nations in growing more quickly, equitably, and sustainably to reduce poverty.
• It is the single largest provider of funds to economic and human development projects in the world's poorest nations.

Additional Information

• World Bank Group consists of five development institutions
• International Bank for Reconstruction and Development (IBRD) provides loans, credits, and grants.
• International Development Association (IDA) provides low- or no-interest loans to low-income countries.
• The International Finance Corporation (IFC) provides investment, advice, and asset management to companies and governments.
• The Multilateral Guarantee Agency (MIGA) insures lenders and investors against political risk such as war.
• The International Centre for the Settlement of Investment Disputes (ICSID) settles investment-disputes between investors and countries**.**

The correct answer is To make recommendations on norms for the resolution of COVID-19 related stressed loans

Important Points

In News - 

• The Reserve Bank of India (RBI) constituted an expert committee under the chairmanship of veteran banker K.V. Kamath to make recommendations on norms for the resolution of COVID-19 related stressed loans.

Key Points

• The committee will submit its recommendations on the financial parameters to the RBI, which in turn, will notify the same along with modifications, if any, in 30 days.
• The other members of the committee include Diwakar Gupta, T.N. Manoharan, Ashvin Parekh, and Sunil Mehta, CEO of Indian Banks’ Association, as the member-secretary.
• The Indian Banks’ Association (IBA) will function as the secretariat to the committee and the committee will be fully empowered to consult or invite any person it deems fit.

Source - 

https://www.thehindu.com/business/Industry/rbi-sets-up-panel-for-stressed-loans-resolution-norms/article32298619.ece

The correct answer is ​2028-29.

Key Points

• The Union Cabinet approved a production-linked incentive (PLI) scheme for the pharmaceutical sector for the financial year 2020-21 to 2028-29 to increase investment.
• The Production Linked Incentive scheme aims to give companies incentives on incremental sales from products manufactured in domestic units.
• India exports pharmaceutical products to over 200 countries, but high-end patented drugs are imported.
• The scheme will promote innovation for the development of complex and high-tech products, including products of emerging therapies and in-vitro diagnostic devices, as also self-reliance in essential drugs.
• The scheme is expected to bring in an investment of Rs 15,000 crore in the pharmaceutical sector.
• In November, the PLI scheme was expanded to include 12 more sectors such as automobile and automobile components, pharmaceutical drugs, textile products, food products, high efficiency solar photovoltaic modules, white goods such as air conditioners and LED bulbs, and specialty steel products.

Additional Information

• Under this scheme, eligible Micro, Small, and Medium Enterprises (MSMEs) will get an incentive of 7 percent for the first and the second year, followed by an incentive of 6, 5, and 4 percent in the third, fourth and fifth year, respectively.
• Other companies, which do not fall under the MSME category but are eligible, will receive an incentive of 6 percent for the first two years, 5 percent for the next two years, and 4 percent for the fifth and final year.

The correct answer is 2022. 

• To address the challenge of job creation, the Skill India program was launched.
• It aims to achieve its target of skilling/ up-skilling 400 million people by 2022.
• It aims to do this mainly by fostering private sector initiatives in skill development programs, and by providing them with the necessary funding.

The correct answer is Dinesh C Paliwal-Reckitt Benckiser.

Additional Information

Indian-Origin CEOs:

The correct answer is The first centralized jurisdiction neutral receipt and processing center is set up in New Delhi.

Key Points

• The RBI Integrated Ombudsman Scheme was launched by PM Narendra Modi in November 2021.
• The RBI Integrated Ombudsman Scheme amalgamates :

1. Banking Ombudsman Scheme 2006
2. Non-Banking Financial Company Ombudsman Scheme 2018
3. Digital Transactions Ombudsman Scheme 2019

• The RBI Integrated Ombudsman Scheme will be applied to:

1. Banks
2. Non-Banking Financial Company
3. Pre-paid instrument player
4. Non-Scheduled primary cooperative Bank with deposit size 50 crore or above

• Through the RBI Integrated Ombudsman Scheme customers can:

1. File Complaints
2. Submit Documents
3. Track Status
4. Give Feedback

• A single email address and multilingual toll-free number will be provided under the One Nation One Ombudsman initiative.
• RBI Director in charge of Consumer Education & Protection Department will be the appellate authority of the Integrated Ombudsman Scheme.
• The first centralized jurisdiction neutral receipt and processing center is set up in Chandigarh.

Additional Information

• Ombudsman is a government official who deals with complaints of normal people against a public organization.
• Ombudsman is currently deployed in three sectors in India:

1. Insurance Sector
2. Income Tax Sector
3. Banking Sector

• The concept of the Ombudsman is taken from Sweden.

The correct answer is Nokia.

Key Points

• Bharti Airtel successfully conducted India’s first 5G trial in the 700 MHz band in partnership with Nokia in November 2021.
• It was conducted on the outskirts of Kolkata and it was also the first 5G trial in Eastern India.
• Airtel and Nokia were able to achieve high-speed wireless broadband network coverage of 40 Km between two 3GPP standard 5G sites in real-life conditions.

Important Points

• ​Airtel has been allotted test spectrum in multiple bands by the Department of Telecommunications for the validation of 5G technology and uses cases.
• Airtel used equipment from Nokia’s 5G portfolio, which included NokiaAirScale radios and standalone (SA) core.

The correct answer is 123,700.

• Indians in the US have surpassed the overall American population in terms of wealth and college education, according to a report which cited the latest census data.
• The median family earnings of Indians in the US is USD 123,700, nearly double the nationwide average of USD 63,922.
• The number of people who identify as Asian in the United States nearly tripled in the past three decades, and Asians are now the fastest-growing of the nation's four largest racial and ethnic groups, according to a New York Times analysis of the census data.
• Indians are ahead of other Asian groups in the US in median family earnings ranges.
• Taiwanese and Filipinos with USD 97,129 and USD 95,000 of median family incomes respectively are in second and third place.
• About 4 million Indians currently reside in the US, including 1.6 million visa holders, 1.4 million naturalised residents and a million are US-born residents.
• About 79 per cent of Indians are college graduates, in comparison with the nationwide average of 34 per cent, according to the report.

Shri Giriraj Singh launched MSME Delayed Payment Portal – MSME Samadhaan (http://msefc.msme.gov.in). It will empower micro and small entrepreneurs across the country to directly register their cases relating to delayed payments. The Portal will give information about the pending payment of MSEs with individual CPSEs / Central Ministries, State Governments, etc.

The correct answer is option 1) which is Both 1 and 2

Solution: The current situation index fell to 53.1 in March from 55.5 in January as well as income and prices and the current situation index had hit a record low of 49.9 in September according to the Reserve Bank of India’s consumer confidence survey.

Notes:

• As per Indian consumers turned more pessimistic about the present and less gung-ho about the future, making them less likely to spend big in an economy that’s driven by domestic consumption.
• The current situation index fell to 53.1 in March from 55.5 in January, according to the Reserve Bank of India’s consumer confidence survey, where 100 is the dividing line between pessimism and optimism.
• Survey respondents were also less optimistic about the year ahead, with the future expectations index dipping to 108.8 from 117.1 in the period under review.
• The reasons for the pessimism were deteriorating sentiments on the general economic situation, income, and prices and the current situation index had hit a record low of 49.9 in September.
• The well-entrenched inflation expectations, which are an added challenge for monetary policymakers who were forced to pause interest rate cuts last year because of gains in price growth.
• Households’ median inflation perception for the current period as well as for the three months ahead increased by 50 basis points to 8.7% and by 80 bps to 10.1%, respectively, compared to the January 2021 survey
• Median inflation expectations for one year ahead also remained at an elevated level.
• Elevated inflation and negative real rates can create their own distortions such as encouraging investment in physical assets such as gold, which in turn can pressure external balances through high gold imports and lower potential growth via lower financial savings.

The correct answer is Federal Bank.

Key Points

• Federal Bank partnered with Star Health and Allied Insurance Co Ltd as a corporate agent to provide health insurance products to the bank's customers.
• The partnership is also known as(a.k.a.) Bancassurance( the partnership of Bank + Insurance so that bank is able to provide insurance services).
• The partnership was announced on 10^th December 2021.
• The insurance products will be provided to Federal Bank's 8.9 million customers through its 1291 branches spread across the country.

Important Points

• Federal Bank was established in 1931 and Shyam Srinivasan is the present MD & CEO.
• Star Health and Allied Insurance Company was established in 2006 and Venkatasamy Jagannathan is the present Chairman.
• Federal Bank is headquartered in Kochi, Kerala.
• Star Health and Allied Insurance Co Ltd is headquartered in Chennai, Tamil Nadu.

The correct answer is 9.3%.

• Competition Commission of India (CCI) has approved Zomato’s request to invest in the online grocery platform Grofers India and its wholesale entity Hands on Trades.
• It will acquire approximately a 9.3% stake in the firms.
• Zomato is also finalizing a $100 million investment in the e-grocer at a valuation of $1 billion.
• Zomato has also relaunched its own grocery marketplace**—Zomato Market—starting with Delhi-NCR.**
• In late June, Grofers closed a $120 million investment from Zomato and Tiger Global, valuing it at a little over $1 billion.
• Tiger Global is an investor in both Zomato and Grofers.

The correct answer is 74%

Key Points

• FDI limit in the Defence manufacturing under automatic route will be raised from 49 per cent to 74 per cent.
• Foreign firms can directly invest up to 74 per cent in the defence sector raising the Foreign Direct Investment (FDI) cap from 49 per cent through the automatic route.
• However, foreign investments will be subject to scrutiny on grounds of national security and the government will have the right to review any investment that has a bearing on the country's security.
• Fresh foreign investment of up to 49 per cent in a company not seeking a new industrial licence or which already has government approval for FDI in defence will also need to be cleared.

The correct answer is 18 per cent.

Key Points

• The finance ministry has notified a uniform 12 per cent GST rate on manmade fibre (MMF), yarn, fabrics and apparel products.
• The changed rates will come into effect from 1^st January 2022.
• Previously The GST rate was different on MMF, MMF yarn, and MMF fabrics were 18%, 12%, and 5% respectively.

Additional Information

• the Central Board of Indirect Taxes and Customs (CBIC) is the body to publish the notification of changes in GST rate, giving effect to the GST Council decision.
• Chairman & Members of the Central Board of Indirect Taxes and Customs (CBIC) is Shri Vivek Johri (2022)
• CBIC is the nodal national agency for administering Customs, GST, Central Excise, Service Tax & Narcotics in India.

The correct answer is 12.

Key Points

• The Indian banking system consists of 12 public sector banks, 22 private sector banks, 44 foreign banks, 56 regional rural banks, 1,485 urban cooperative banks, and 96,000 rural cooperative banks in addition to cooperative credit institutions.
• India has come down from 27 public sector banks in 2017 to 12 in 2020.
• Following is the list of 12 public sector banks according to the Department of Financial Services of India :
• ​Bank of Baroda
• bank of India
• bank of Maharashtra
• Canara bank
• the central bank of India
• Indian bank
• Indian overseas bank
• Punjab national bank
• Punjab and Sindh bank
• Union Bank of India
• UCO bank
• State bank of India

The correct answer is ₹5,000 crore.

Key Points

• The Reserve Bank of India (RBI) on 15 November 2021 introduced an Internal Ombudsman mechanism for select Non-Banking Financial Companies (NBFCs).
• Desposit-taking NBFCs with 10 or more branches and non-deposit taking NBFCs with assets size of ₹5,000 crore must appoint an Internal Ombudsman (IO).
• The RBI has given six months time to follow the directions.

Important Points

• ​The direction covers the appointment/tenure, role and responsibilities, procedural guidelines, and oversight mechanism for the IO.
• All complaints that are partly or wholly rejected by the NBFC will be reviewed by the IO before the final decision of the NBFC is conveyed to the complainant.
• The IO will not entertain any complainants directly from members of public.
• The implementation of the IO mechanism will be monitored by the NBFC’s internal audit system apart from regulatory oversight by RBI.