RBI Questions | India’s #1 Learning Platform Start Complete Exam Preparation Cheer te road raed DO) Psere Pree anrid Paez . Vv, B Download App Question1: According to section_______. of the ReserveBank of India Act, 1934, the bank has full authority to issue banknotes of all denominations. 1.25 Cee mle ea Come en aS Clu y elmer ele) g esAnswer (Detailed Solution Below) Option 2: 22 With hundreds of Questions based on 5, wehelp you gain expertise on Banking end Financiel Awareness. All for free. Explore Testbook Leam to attain the subject expertise with us. RBI Question! DetailedSolution The correct answer is 22. © Key Points + According to Section22 of the RBI Act, 1934 the Reserve bank of India has sole night toissue currency or printcurrencyin | ° + Section25 of theRBI Act, 1934 proyikies that the design, form,andmaterialof banknotesshall be such as may be proved by the Central Government after consideration of the recommendations made by the Central Board of RBI + Section24 of the RBI Act 1934 states that the maximum denominatiomf note printed in India is Rs.10000. + Section26 of theREI Act 1934 states the legaltendercharactemf Indian banknotes B ef Inf 5 + RBI was established on April 1, 1935, under the Reserve Bank of Incia Act,1934 + Current Governor of RBI is Shri ShaktikantaDas(25th). + Sir OsborneSmith was the first govemor of RBI and C.D Deshmukhwas the first Indian governor of RBI + Itoperates the currencyand creditsystem of the country. + Itis called the BankersBank of India. + It formulatesimplements,and monitorsthe monetary policy See see ia Start Complete Exam Preparation Reo an cere Pu Pes DOS cuereey Question Bank Download App Question2: View this Ques tiorIn January 2024, the ReserveBank of India (RBI) inc! edtheminimum capital requirementfor Small Finance Banks (SFBs) fr roe toRs Payments Banks to upgrade as SFBs. ar.) 2 “coo 10 cror 500 crore 5. 600 crore Answer (Detailed Solution Below) Option 1: 200 crore RBI Question2 DetailedSolution The correct answer is 200 crore. " ‘6 InNews + RBI doublesthe minimum capitalrequiremento Rs 200 cr for SFB. co © Key Points . + TheReserveBank raisedthe minimum capitalrequirementor smal anks toRs 200 croreand permittedPaymentsBank to upgradeas SFI * This move aims to enhance the financial resilience sustainability. + Itis worth noting that all SFBs currently in of net worth exceeding Rs 200 crore + For Primary urban cooperative banks tI - ish to transition into SFBs, the initial net 0 re their long-term worth requirement has been set at Rs + TheseUCBs must increase th wortl s 200 crore within five years from the commencement of busines: + Payments banks, after five years of operations and meeting the eligbility criteria, can apply for conversion into SFBs + This provision opens up new opportunities for payment banks to expand their services end cater toa broader customer base © Additional Information* RBI © Established in - 1935 » HQ - Mumbai » Governor -ShaktiKanta Das a Teen ga Start Complete Exam Prepara’ aoe cal oy POs Download App Question3: View this Question Online > As per the Master Direction - ReserveBank of India (Internal Ombudsman for Regulated Entities) Directions, 2023 issuedby the ReserveBank of India in January 2024, the regulated entities(REs) and their internal Ombudsman (10S) should communicatea final decision to customerswithin ______. days of receivinga complaint. 1. 30 5. 120 Answer (Detailed Solution Below) Option 1: 30 RBI Question3 DetailedSolution The correct answer is 30.iB InNews = + TheReserveBank of India (RBI) issuedthe MasterDirectionReserveBank of India (Internal OmbudsmanforRegulatedEntities)Directions2023 as per which theregulatedentities(REs) and theirinternalOmbudsman(10s) shouldcommunicatea final decisionto customerswithin 30 days of receivinga complaint. This directive aims to enhance consumer grievance redress and customer service standards within REby facilitating a thorouch review be ‘ore the rejection of customer complaints by 10. 10s usually deal with custome: complaints related to @ deficiency in service + This directive by RBI is issueeam the exercise of its powers conferred by Section 354 of the Banking Regulation Act. 1949)Settion 45L read with 45M of the RBI Act, 1934 sub-section (1) of Section 11 of Credit information Companies (Regulation) Act, 2005 and Section 18 of the Payment and SettlementSystems Act, 2007. + REs must implement a fully automated Complaints Management Software, escalating all partly or wholly rejected complaints by the intemal grievance redress mechanism to the IO within 20 days fora final decision Established in - 1935 HQ - Mumbai Governor -Shektikanta Das & Teeter arc Oa oe Slam eer Ce ye L Cd) POT fees | Mock Tests DCS Cierra ereeea Exons o Download App Question4: View this Question Online > Which of the following pointsis/are "correct with respectto the MasterDirection on Commercial Paper and Non-Convertible Debentures 2024 issued by the ReserveBank of India in January 2024? A) RBI issuedMaster Direction - RBI (Commercial Paper and Non-Convertible Debentures of original or initial maturity up to one year) Directions, 2024 which will come into effectfrom Ist July 2024. B) Commercial Paper (CPs) and Non-Convertible Debentures(NCDs) mustbe issuedand held in dematerialized form witha Securitiesand Exchange Board of India (SEBI) registered depository. « - C) The minimum denomination for CPs and NCDs is Rs 5 lakh, with multiples of Rs Slakh thereafter. xnly A 2, Only B 3. Both Aand C 4. Both BandC 5. AA, Band C Answer (Detailed Solution Below) Option 4: Both B and C RBI Question4 DetailedSolution The correct answer is BothB and C. ‘B InNews * RBI issuesorderto tweakNCD, commerciapapernorms. © Key Points * On January3, 2024, the ReserveBank uedMasterDirectionRBI (Commercial Paperand Non-ConvertibleDebenture: ial maturityup to oneyear)Directions, 2024 which will comeinto eff: Ap 5 + These Directions have been i xercise of the powers conferred under sections 45J, 45K, 45L, and 45W of RBI Act, 1934 read with section 45U of the Act and of all the powers enabling it in this behalf + Commercial Paper and Non-Convertible Debentures (NCUs) must be issued and held in materialized form with a SEBI registered depository. + The minimum denomination for CPs and NCDs is Rs 5 lakh, with multiples of Rs § lakh thereafter. + CPs have a tenor betweenseven days and one year, while NCDs have a tenor betweennnety days and one year. Established in 1935 HQ - Mumbai ° Governor -Shaktikanta Dasee eee ec SSE Ta ery e L Cola) Oras feed ie easy aa Eo Coreen Exons) Questions: View this Question Online > How many sub-indices are therein the Financial Inclusion Index report released by RBI? Answer (Detailed Solution Below) Option 1:3 RBI Question5 DetailedSolution The correct answer is 3. © Key Points * There are 3 sub-indicesin the Financialinclusionindex Reporteleased by the RBI ~”* The sub Indices are further divided into the following: » Access Divided into four dmensions. Banking, Digital, Pension and Insurance. Comprised of 26 Indicators. » Usage Divided into fivedimensions Savings and Investment, Credit, Digital, Insurance and Pension. Comprised of 52 Indicators ° Quality: Divided into three dmensions. Financial Literacy, Consumer protection, and inequality, With a totalof 19 indicators. ‘TopRBI MCO Objective Questions j ce ee aren parca) Bearer cea Start Complete Exam Preparation ca Oreo aries Seed aca Vol resent 4 pao Download App Questions 7 View this Question Online > Whois the only Prime Minister to have served as the Governor of RBI? 1, PV. Narsimha Rao 2. Manmohan Singh 3. a ‘Shastri 4. Indira Gandhi Answer (Detailed Solution Below) Option 2: Manmohan Singh RBI Questioné6 DetailedSolution ‘The correct answer is option 2i¢ ManmohanSingh * ManmohanSinghis the only PrimeMinisterto have also servedas the Governor of RBI + He was the Governor of RBI from 1982-1985.Factstoremember abouRBI: + The Reserve Bank of India was establishedon April 1, 1935 in accordance with the provisions of the ReserveBank of India Act, 1934. + The Central Office of the,Zaserve Bank was initially established in Kolkata but was permanently moved to Mumbai in ah Central Office is where the Govemor sits and where policies are formulated + Though originally privately owned, sincenationalisatiorin 1949, the ReserveBank is fully owned by theGovernmenbf india. + The Reserve Bank of India (RBI) is India's central bank, which controls the issue and supply of the Indian rupee. + RBlis the regulator of the entire Banking in India + ShaktikantaDasis the current governor of RBI * RBI's headquarters are in Mumbai. The RBI has four zonal offices at Chen Mumbai India’s #1 Learning Platform Start Complete Exam Preparation Rear te ike Pa Neate) aa ecto Cree ead Exit 22 Download App Question? ; View this Question Online > ReserveBank Staff College is situatedat é 1, Mumbai .¢ 2. New Delhi = 4. Chennai Answer (Detailed Solution Below) Option 4: Chennai RBI Question7 DetailedSolutionThe correct answer is Chennai ReserveBank StaffCollegeis situatedin Chennai, © Key Points f + ReserveBank StaffCollege ss ® Itwas established on July 03, 1963. > Itis in Chennai > Itis the apex lito tec Of the Reserve Bank of India, actively contributing to the knowledge enhanc endeavours of the Bank. Be Addit Inf q + TheReserveBank of India © India's central bank. > Itis a regulatory body ° Governor -ShaktikantaDas Pg India’s #1 Learning Platform em AS ela merle) (CCl ell) Sato, ies Question Bank Download App & Quizzes ic ] Paes aed a) Dao Question’ Lies tion Online = In which year was the RBI nationalised? 1, 1971 om, 2 1956 = 3. 1949 = 4 1935, tS, - Answer’ tailed Solution Below)Option 3: 1949 RBI Question8 DetailedSolution The correct answer is 1949. * RBI was nationalizedin the year 1949, © Key Points + ReserveBank of India (RBI): » RBI was setup on the basis of the Hilton YoungCommissionrecommendation in April 1935, with the enactment of the RBI Act, 1934 Itwas nationalized on the basis of the ReserveBank of India (Transferto Public Ownership)Act, 1948. Its firstGovernowas C.D. Deshmukh. oO The headquartersf RBlis in Mumbai Currentgovernonf RBI is ShaktikantaDas. G toncmanens oo" * Quantitative/General Credit Control The quantitative credit control consists co = BankRate @ Itis also called the r tS the rate, at which the RBI gives finance to. commercia! bank: m= CashReserveRatig(CRR) m= The RBI ( nt) G empowers RBI toprescribe CRR~Cash that banks dep ‘he RBI without any floor rate or ceiling rate StatutoryLiquidityRatio (SLR) ™ Itis the ratio of a liquid asset, which all commercial banks have to keep in the form of cash, gold, and unencumbered approved securities equal tonot more then 40% of their totaldemand and time depos't liabilities (ranges is 25-40%), RepoRate @ Itis the rate, at which RBI lends short-term money to the bank against securities. m ReverseRepoRate a Itis the rate, at which banks park short-term excess liquicity with the RBI = OpenMarketOperation,OMOs) ™ Under OMOs, the RBI sells G-securities in the market. + Quantitative credit controls are used to control the volume of credit and indirectly to control the inflationary and deflationary pressures caused by expansion and contraction of credit.Es eee arco Roe) AS Earn ee Lola) SoA Neat ried es mi tee Beene rate D> Download App Questiond . View this Question Online > Whois resentGovernor of RBI of India (As of Sep 2022)? 1. VV. Chari 2. Raghuram Rajan 3. Shaktikanta Das 4, Unit patel Answer (Detailed Solution Below) Option 3: Shaktikanta Das RBI Question9 DetailedSolution ‘The correct answer is ShaktikantaDas. + Heis the oresentgovernBHRE! of india. © Key Points + He is the 25th governomfRBI Shaktikanta Das was born on 26 February1957. + Heis ¢ retired 1980 batchindian AdministrativeService(IAS) officerot Tamil Nadu. + He was earlier a member of the FifteenthFinanceCommissionend India's Sherpa to the G20. + Urjit Patelwas the formergovernomf RBI + Urjit Patelis an Indian economist, who served as the 24th Governomf theReserveBank ofindia from4 September2016 to 10 December2018.Fg eee ec AS Earn ee Lola) ras fared Pia CCS ciee Question Bank Exons) D> Download App Question10 ‘View this Question Online > ReserveBank of India was establishedin which year? 1. 1934 ve 2 oN 3. 1936 4. 1937 Answer (Detailed Solution Below) Option 2: 1935 RBI Question10 DetailedSolution Reserve Bark of India was established in the year 1935 after the recommendation of the Royal Commission under the c| ship of Hilton Young. + Itwas setup in 1935 he ReserveBank of India Act,1934 + Until the Monetary Policy Committee was established in 2016, it also controlled monetary policy in India + The Reserve Bank of India is India's central bank, which controls the issue and supply of the Incian rupee. * RBI was established in Calcutta but was moved to Bombay in 1937.Es eee arco Roe) AS Earn ee Lola) Cea Sees aes Veco mice Mi Eilon Question Bank Download App Exori22 Question11 View this Question Online > Whois the "lender of the lastresort’in India? 1. SBI > '. 3. NABARD 4. SEBI Answer (Detailed Solution Below) Option 2: RBI RBI Question11 DetailedSolution Banks are required tomaintan a portion of their demand and time liabilities as cash reserves with the Reserve Bank. + For this purpose, they need tomantain a current account with the Reserve Bank * The current account of the banks is opened by, the Banking Departments of the Reserve Bank's Regional offices. + The Department of Government end Bark Accounts (DGBA) issues general guidelines for opening the current accounts. - Poi iJ As a Banker to Banks, the a. alsoactsas the ‘lenderofthelastresort’ + Itcan come to the rescue of a bank thatis solventbut faces temporary liquidity problems by supplying it with much-needed liquidity when no one elseis willing to extend credit to that bank* The Reserve Bank extends this facility to protect the interest of the depositors of the bank and to prevent possible failure of the bank, which in tun may also affectother banks and institutions and cen have an adverse impact on financial stability end thus on the economy. ‘Thus, RBI is the correctanswer Rig Tee aur gael) Start Complete Exam Preparation Re Dan ue ec aca ier. raed Perera Cree ead Download App Question12 View this QuestionOnline > Which of theseinstitutionsfixes the Repo Rate and the ReverseRepo Rate in India? 1. Ministry of Finance 2. State Bank of india 3 a. and Auditor General of India 4. Reserve Benk of India Answer (Deiailed Solution Below) Option 4: Reserve Bank of India RBI Question12 DetailedSolution The correct answer is option4: i + ReserveBank of India (RBI) is responsible for fixing Repoor ReverseRepoRate + RBi regulates these rates as a part of its monetary policy, + Monetarypolicyrefers to the steps undertaken by the central bank to control the liquidity and ‘supply of money in the market. + RepoRate itis en Acronym for the Repurchasing Agreement Rate Itis the rate at which RBI lends money to other iaaniss in the country for the short term* ReverseRepoRate Whe Banks deposit their surplus funds with RBI for a short term, the rate then offeredby RBI's called Reverse Repo Rate. ReserveBank of India (RBI): + [twas established on April1, 1935, under the RBI Act 1934, but as a private bank. + RBI wes nationalized in 1949, + Itis the apex banking institute of India. Tee rer pela AS lame ee eel) AR ee Fcc DOS eee Cesar Question! View this Question Online » The technique used for printing RESERVE BANK OF INDIA’ appearingon the face of the Indian currency notesis 1 bof Bro 2. Micro lettering 3. Latent printing 4 Screen printing Answer (Detailed Solution Below) Option 1: Intaglio printing RBI Question13 DetailedSolution Intaglio printingis the opposite of relief printing, in that the printing is done from ink thatis below the surface of the plate. The design is cut, scratched, or etched into theprinting surface or plate, which can be copper, zinc, aluminum, magnesium, plastics, or even coated paper.x eee er ec Start Complete Exam Preparation Rear eaat Oras aren f mea CCS tier oes Download App pxorra Question14 View this QuestionOnline > Thelegal provisions governing the managementof foreign exchange reservesare laid down in the ReserveBank of India Act, 1, 1947 2. 1934 % 3. 1923 41971 P< Answer (Detailed Solution Below) Option 2: 1934 RBI Question14 DetailedSolution The correct answer is 1934. * The legal provisions governing the managementof foreignexchangereservesire laid down in the ReserveBank of India Act1934. © Key Points + The Reserve Bank of India Act 1934, provides the overarching legalframeworkfor the deployment of reserves in differentforeigncurrenciesassets,and gold within the broad parameters of currenciesinstrumentsjssuers,and counterparties + The guiding objectives of foreignexchangereservenanagementnn India aresimilar to thoseot many centralbanksin the world+ RBI Act was passed in 1934. ‘ Sh svanisnarsitciinats + RBlis known as the'CentraBank of India’ whose primary function is toregulatethe issue of Banknotesand keeping of reserves with a view to securingmonetarystabilityin India and generally to operatethe currencyand creditsystemofthe country + RB] was setup on the recommendation of the Hilton YoungCommissionalso calledthe Royal Commissionin 1926. my + Itwas established on 1st Api ® + RBI wes nationalized on 1s “ahi 949, + RBlissues all currencynotesexceptonerupee. + The signature of the RBI Governor on the notesis in English andHindi. + The currency notes exceptone rupee hold the signatureof the RBI Governor. + One rupee holds the signatureoftheFinanceSecretary. ® Important Points = Presentand 25" Governor of RBI - ShakthikantaDas (As of March2022). @ Deputy Govemors of RBI - T. RabiSankar,S. M. K Jain, M. D. Patra,and M. RajeshwarRao. & The first Governor of RBI - Sir OsborneSmith. . . . The first Indian Governor of RBI-C. D. Deshmukh. The longest-serving RBI Govemor - BenegalRama Rao. Headquarter of RB! -Mumbai, Resear bare Renn ree Start Complete Exam Preparation Poe eos anos Deion eg iors: Question15 View this QuestionOnline > Which of the following institutionsis responsible for regulatingthe formal sources of credit in India? 1. RBI % 2. TRAL me 3. NABARD. _Answer (Detailed Solution Below) Option 1: RBI RBI Question15 DetailedSolution The correct answer is BBL. + TheReserveBank of Indiais the body responsible forrequlating the formal sources of cre India + RBI startedits operation on April, 1935. + The nationalization of RBI took place in 1949 and fromJanuary1, 1 government-owned bank. + The onginal headquarters of RBI were in Kolkata, but in 1937, it Ednablished IThe Telecom Regulatory Authority Lrahiooficia (TRA\)is the reou the elecommunications s pda National Bank for Agriculture and Rural Development (NABARD) 's an apex ldevelopment finance institutions in India Jalforereit for egiculture ond other ‘conomic activities in rural areas in India |The Insurance Regulatory and Development Authority of India (IRDA) is lan autonomous, statutorybody tasked IRGAQOBvith regulating and promoting the Insurance and re-nsurance industries in India INAI + RBI was established via the RBI Act of 1934, so it is also known as cots) I sti jorking as a e ‘0 Mumbai.