MCQ for economy-1-13th-october-2022

Consider the following statements with reference to Priority Sector Lending (PSL) in India:

1. Domestic Commercial Banks (excl. RRBs & SFBs) and foreign banks having less than 20 branches have to fulfil the 40% PSL target.

2. For Regional Rural Banks (RRBs) and Small Finance Banks (SFBs), the PSL target is only 32%.

3. Loans to start-ups and software industries comes under the purview of PSL.

Which of the statements given above are correct?

Consider the following statements with reference to Cooperative banks:

1. The Cooperative banks are owned by the Central, State governments and the Sponsor Bank in the ratio 50:15:35.

2. The Reserve Bank of India does not regulate the Primary Agricultural Credit Societies.

Which of the statements given above is/are not correct?

The deposit insurance facility is applicable to which of the following categories of financial institutions in India?

1. Cooperative Banks

2. Payment Banks

3. Local Area Banks

4. Non-Banking Financial Companies

Select the correct answer using the code given below:

Consider the following statements with reference to Capital to Risk-weighted Assets Ratio (CRAR):

1. It is the bank’s capital in relation to its risk-weighted assets and current liabilities.

2. Indian banks must maintain a higher CRAR than those stipulated by the Basel III norms.

3. Regional Rural Banks are exempted from maintaining CRAR in India.

Which of the statements given above are correct?

Consider the following statements with reference to Merchant Discount Rate (MDR):

1. It is the fee a consumer pays to a merchant for facilitating a digital transaction.

2. It is capped at 0.9% of the transaction value for all payment channels.

3. In India, all UPI and RuPay-based transactions are exempted from MDR.

Which of the statements given above is/are correct?

Consider the following statements:

1. In contrast to SLR, a long-term tool, CRR is a short-term liquidity management tool.

2. Cooperative Banks are subject to CRR and SLR requirements just like the other banks.

3. RBI cannot fix CRR lower than the minimum ceiling of 3%.

Which of the statements given above is/are correct?

Consider the following statements with reference to Monetary Policy Committee (MPC):

1. It is a statutory body set up as per the RBI Act 1934.

2. Members of the MPC are appointed for four years and are eligible for reappointment.

3. It is in charge of determining the various policy rates, such as MSF, Repo Rate, Reverse Repo Rate, and Liquidity Adjustment Facility.

Which of the statements given above are correct?

Consider the following statements with reference to Payment Banks:

1. Payment Banks can lend and receive deposits only up to Rs.2 lakh.

2. They can issue only debit cards but not credit cards to their customers.

3. They are not obligated to adhere to CRR/SLR standards.

Which of the statements given above is/are correct?

Consider the following statements with reference to Repo Rate:

1. It is applicable only when the amount of borrowing is a minimum of Rs. 5 crores.

2. Regional Rural Banks (RRB) are not allowed to borrow from the RBI using the Repo Rate mechanism.

3. The securities used in the Repo Rate mechanism cannot be considered under SLR.

Which of the statements given above is/are correct?

Consider the following statements with reference to Standing Deposit Facility (SDF):

1. It aims to absorb liquidity from the commercial banking system into the RBI by issuing Government securities.

2. SDF will enable banks to park excess liquidity with the Reserve Bank at their discretion.

3. It was first proposed by the Urjit Patel Monetary Policy Committee report in 2014.

Which of the statements given above is/are correct?