Banking Awareness Quiz With Explanation: Part 18

(1). In BHIM App, what is the limit of total transaction per day?
(a) 10,000 INR
(b) 20,000 INR
(c) 30,000 INR
(d) 50,000 INR

(2). Nidhi Company is also known as
(a) Equipment Leasing Company (EL)
(b) Non-Banking Finance Company(NBFC)
(c) Residuary non banking companies(RNBC)
(d) Miscellaneous Non- Banking Company (MNBC)

(3). The NPCI (National Payment Corporation of India) has developed the BHIM App in association with which of the following?
(a) Paytm
(b) Juspay
(c) SBI
(d) None of the Above

(4). What is the share of Central Government in Regional Rural Banks(RRBs)?
(a) 50 %
(b) 40 %
(c) 45 %
(d) 60%

(5). Every bank Maintain a certain % of their total deposits with RBI in the form of Cash and
(a) Gold
(b) Government Securities
(c) Bonds
(d) Net demand & Time liabilities

(6). Which of the following monetary is also termed as 'Discount Rate'?
(a) Bank Rate
(b) MSF (Marginal Standing Facility)
(c) Repo Rate
(d) Reverse Repo Rate

(7). Which of the following is not an Indirect Instrument of Monetary Policy of RBI?
(a) Bank Rate
(b) Repo Rate
(c) Statutory Liquidity Ratio (SLR)
(d) MSF (Marginal Standing Facility)

(8). What is 'P' stands for in 'FPO'(related to shares)?
(a) Payment
(b) Public
(c) Purchase
(d) Post

(9). BHIM app is based on which of the following technologies?
(a) EMV
(b) Point of Sales(PoS)
(c) Unified Payment Interface(UPI)
(d) None of the Above

(10). For availing Differential rate of Interest, a rural family income must not exceed
(a) Rs. 18000
(b) Rs. 20000
(c) Rs. 50000
(d) Rs. 30000


(1). Answer Key: (b)
For now, the maximum limit for every transaction has been set at 10,000 INR and a total transaction of 20,000 INR per day. The limits are expected to change in future.

(2). Answer Key: (c)
Any company which is notified by the central Government as a Nidhi Company under section 620A of the companies Act, 1956. It is a NBFC(and MBFC in particular) doing the business of lending and borrowing with its members or shareholders.

(3). Answer Key: (b)
This app has been developed by the NPCI (National Payment Corporation of India) in association with Juspay. This app is now readily available on playstore which is the android platform the and same for the iOS platform is expected to be launched soon.

(4). Answer Key: (a)
Every RRB is owned by 3 entities with their respective shares as follows:
Central Government -50%
State government-15%
Sponsor bank -35%

(5). Answer Key: (d)
Every bank Maintain a certain % of their total deposits with RBI in the form of Cash and Net demand & Time liabilities. Current CRR is 4%. Every Bank has to pay the amount to RBI on every 15 Days.

(6). Answer Key: (a)
Bank rate is also termed as “Discount Rate” The rate through which RBI charges certain % for providing money to other banks without any security for Long period of time for 90 Days & Current Bank Rate is 6.75%.

(7). Answer Key: (c)
Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio are Direct Instruments of Monetary Policy of RBI

(8). Answer Key: (b)
A follow-on public offer (FPO) is an issuing of shares to investors by a public company that is already listed on an exchange. An FPO is essentially a stock issue of supplementary shares made by a company that is already publicly listed and has gone through the IPO process.

(9). Answer Key: (c)
Bhim app is an application for payment through smartphones which is based on the technology of UPI (Unified Payment Interface). After selecting the account the user has to enter a 4 digit code (UPI PIN) to make transactions through the app.

(10). Answer Key: (a)
Individuals whose family income does not exceed Rs. 18000 per annum in Rural areas and Rs. 24000 per annum in Urban and Semi Urban Areas.
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