Banking Awareness Quiz : Set – 45

Ans: e

Ans: c

Ans: c

On saving account an individual earns some rate of interest, these rate of interest varies from bank to bank, earlier this rate of interest in fixed by RBI but now RBI has given power to banks to decide their own rate of interest on saving account .This rate of interest is usually 4% but some private banks offering 6% rate of interest too.

Ans: e

The Non Resident External Account (NRE Account) is a Savings / Current. Recurring Deposit / Fixed Deposit bank account held in India, in Indian Rupees. Such accounts can be opened only by the NRI. Balances held in NRE account are fully repatriable. With effect from March 1, 2014, interest rates offered by banks on NRE deposits cannot be higher than those offered by them on comparable domestic rupee deposits.

FCNR (B) stands for Foreign Currency Non –Resident (Bank) account

This account is opened by NRIs In this account a person invest a fixed sum of money for a period not less than one year and max five years in any foreign currency in FCNR account . After the completion of fixed period principal and interest is paid in foreign currency in which he had deposited .In this way NRI are save from foreign exchange rate risk. Account can be in any freely convertible currency.

Ans: d

Both the accounts should be denominated in Indian Rupees while FCNR should denominate in foreign currency such as Pound, US dollar, Yen, and Australian dollar).

Ans: c

Exchange earners’ foreign currency account (EEFC) is an account maintained in foreign currency with an authorised dealer i.e. a bank dealing in foreign exchange.

An EEFC account can be held only in the form of a current account. Cheque facility is available for operation of the EEFC account. No interest is payable on EEFC accounts.

Ans: b

A bank account scheme for non-residents having a business interest in India has been permitted, namely the non-interest bearing Special Non-Resident Rupee Account (SNRR account). SNRR accounts may be used for effecting bona fide transactions in Indian Rupees. The debits and credits to the SNRR account must be specific or incidental to the business proposed to be undertaken by the non-resident account holder in India. Further, the tenure of the SNRR account must be concurrent with the tenure of the contract or period of business operation of the non-resident account holder, and in any event, must not exceed seven years.

Ans: d

The Maturity period of term deposit range from 1 to 5 years. FCNR account was introduced in 15^th may,1993.

Ans: d

Ans: e