Banking Awareness Quiz : Set – 48
Q.1) What is the initial capital amount to start small finance banks?
a) 50 crore
b) 100 crore
c) 150 crore
d) 500 crore
e) None of these
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Ans: b
The minimum paid-up equity capital requirement of Rs 100 crore. Existing non-banking financial companies (NBFC), micro-finance institutions (MFI) and local area banks (LAB) are allowed to set up small finance banks.
Q.2) who has the eligibility to open the banks?
a) Professional with 10yrs experience
b) Finance companies
c) MFIs and local area bank
d) Promoter group with 5yr experience
e) All of these
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Q.3) For the initial —- years, prior approval require for branch expansion?
a) 1yr
b) 2yr
c) 3yr
d) 4yr
e) 5yr
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Q.4) Which of the following words must have in its bank name?
a) Small bank
b) finance bank
c) local bank
d) small finance bank
e) None of these
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Ans: d
Every small finance bank must have the words “small finance bank” in its name. They cannot set up subsidiaries to undertake non-banking financial service activities.
Q.5) what is the initial stake of promoters in the paid-up equity capital of small finance bank?
a) 25%
b) 30%
c) 45%
d) 50%
e) 40%
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Ans: e
The initial stake of promoters in the paid-up equity capital of Small Finance Banks is 40% and it can be reduced to 26% for 12 years.
Q.6) how much percentage of the net credits of small finance banks should be in priority sector lending?
a) 75%
b) 25%
c) 30%
d) 70%
e) 35%
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Ans: a
75% of the net credits of Small Finance Banks should be in priority sector lending.
Q.7) which of the following was launched the first small finance bank?
a) Capital local area bank
b) Ujjivan small finance bank
c) Disha Microfin private Ltd
d) Equitas Holdings Private ltd
e) Au Financiers (India) Ltd
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Ans: a
Jalandhar-based Capital Local Area Bank (CLAB) was became India’s first small area finance bank (SFB) by flagging-off its operations on April 13, 2016.CLAB was the first among the 10 applicants to got final licence from the Reserve Bank of India (RBI). The lender is currently active as local area bank.
Q.8) which of the following was first to opened the small finance bank after demonetization in India?
a) Capital local area bank
b) Ujjivan small finance bank
c) Utkarsh small finance bank
d) Equitas Holdings Private ltd
e) Au Financiers (India) Ltd
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Ans: c
This is the first one to launch operation after demonetisation in this small finance bank space. CDC has pumped in Rs 150 crore in tier II capital in the company. Utkarsh Micro Finance with Rs 700 crore net worth will be the holding company for the new bank, which will cater to the poor in largely in the northern belt.
Q.9) who chaired the external advisory committee to evaluate application received for small finance bank?
a) Usha Thorat
b) Nachiket Mor
c) Raguram rajan
d) R Gandhi
e) None of these
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Ans: a
Usha Thorat, former deputy governor of the Reserve Bank of India (RBI) will chair the External Advisory Committee (EAC) to evaluate applications received for small finance banks, while Dr. Nachiket Mor, Director, Central Board of the Reserve Bank will chair the EAC for payment banks. More than 100 entities have applied for small finance and payment banks.
Q.10) The small finance bank maximum loan size would be—–of capital funds to single borrower and 15% to a group as per the present RBI rules.
a) 20%
b) 25%
c) 40%
d) 50%
e) 10%
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