1
Q
Bank for International Settlements” means the body corporate established with the said name under
A
the law of Switzerland in pursuance of an agreement dated the 20th January 1930, signed at the Hague
2
Q
“Consumer Price Index” means the Consumer Price Index Combined published by
A
the Government of India from time to time
3
Q
DICGC act
A
Deposit Insurance Corporation Act, 1961
4
Q
EXIM Bank act
A
Export-Import Bank of India Act, 1981
5
Q
Industrial Finance Corporation Act
A
Industrial Finance Corporation Act, 1948
6
Q
“inflation” means
A
the year wise change in monthly Consumer Price Index expressed in terms of percentage
7
Q
National Bank for Financing Infrastructure and Development ACT
A
National Bank for Financing Infrastructure and Development Act, 2021
8
Q
National housing bank
A
National Housing Bank Act, 1987
9
Q
“Policy Rate” means
A
the rate for repo-transactions under sub-section (12AB) of section 17;]
10
Q
Industrial Reconstruction Bank of India
A
Industrial Reconstruction Bank of India, Act, 1984;
11
Q
“rupee coin” means 8[* * *] rupees which are legal tender 9[in 10[India]] under the provisions of the
A
Coinage Act, 2011
12
Q
SBI act
A
State Bank of India Act, 1955
13
Q
“Sponsor Bank” means a Sponsor Bank as defined in
A
Regional Rural Banks Act, 1976
14
Q
SIDBI
A
Small Industries Development Bank of India Act, 1989
15
Q
State Financial Corporation
A
State Financial Corporations Act 1951
16
Q
Unit Trust of India ACT
A
Unit Trust of India Act, 1963
17
Q
National Bank act
A
National Bank for Agriculture and Rural Development Act, 1981
18
Q
“other development financial institution” means a development financial institution licensed under
A
Section 29 of the National Bank for Financing Infrastructure and Development Act, 2021
19
Q
The capital of the Bank shall be
A
five crores of rupees
20
Q
What is the primary condition mentioned before the Central Government gives directions to the Bank?
A
Consultation with the Governor of the Bank
21
Q
Under what circumstances might the Central Government give directions to the Bank?
A
When considered necessary in the public interest
22
Q
How many Deputy Governors can be appointed by the Central Government to the Central Board?
A
Not more than four
23
Q
How many Directors are nominated by the Central Government from Local Boards?
A
four
24
Q
What is the total number of Directors nominated directly by the Central Government, excluding those from Local Boards and Government officials?
A
ten
25
How many Government officials are part of the Central Board as per the nomination by the Central Government?
two
26
What is the total number of members on the Central Board, including the Governor, Deputy Governors, and all nominated Directors?
21 (1 Governor + up to 4 Deputy Governors + 4 from Local Boards + 10 directly nominated + 2 Government officials)
27
Who determines the salaries and allowances of the Governor and Deputy Governors?
Central Board of directors
28
Under what conditions can the Governor or a Deputy Governor undertake part-time honorary work?
If deemed necessary in the public interest and not interfering with their duties
29
Who can permit the Governor or a Deputy Governor to undertake part-time honorary work?
The Central Board
30
What is a unique role that a Deputy Governor might take on
Act as the Chairman of the National Bank
31
Who has the authority to appoint a Deputy Governor as the Chairman of the National Bank?
The Central Government, in consultation with the Bank
32
Can a Deputy Governor vote in the meetings of the Central Board?
Only if authorized by the Governor in his absence
33
What is the general voting right of a Director nominated under clause (d) of sub-section (1) at Central Board meetings?
They do not have voting rights
34
Under what circumstances can a Deputy Governor vote in place of the Governor?
Only if the Governor is absent and has given written authorization
35
What can a Director nominated under clause (d) of sub-section (1) do at Central Board meetings?
Attend and deliberate but not vote
36
What is the maximum term length for the Governor and a Deputy Governor when initially appointed?
Five years
37
Can the Governor or a Deputy Governor be re-appointed after their initial term?
yes
38
How long does a Director nominated under clause (c) of sub-section (1) serve?
Four years
39
What is the maximum number of terms a Director nominated under clause (c) can serve?
Two terms
40
How long does a Director nominated under clause (d) of sub-section (1) serve?
At the pleasure of the Central Government
41
How many members does each Local Board consist of?
Five
42
How many Local Boards are there as per the text?
Four
43
ho appoints the members of the Local Board?
The Central Government
44
What interests are the members of the Local Board supposed to represent?
Territorial, economic, cooperative, and indigenous banks' interests
45
How is the chairman of a Local Board selected?
Elected by the members of the Local Board
46
What is the term length for which a member of a Local Board holds office?
Four years
47
Can members of a Local Board be reappointed?
Yes, they are eligible for reappointment
48
What is the maximum number of terms a member of a Local Board can serve?
Two terms
49
What is one of the primary functions of a Local Board?
To advise the Central Board on referred matters
50
Who has the authority to remove the Governor or a Deputy Governor from office?
The Central Government
51
Under what condition does a Director nominated under clauses (b) or (c) of section 8 cease to hold office?
If they miss three consecutive meetings without leave
52
What happens if a Director or Local Board member becomes disqualified according to section 10?
They must be removed from office by the relevant authority
53
Can a Director or member of a Local Board who has been removed or ceased to hold office be re-appointed before their original term expires?
No, not until the expiry of their original term
54
What is the consequence for a Director or member of a Local Board who becomes a member of Parliament or a State Legislature?
Their nomination as Director or member becomes void unless they resign from the legislative body within two months
55
How can a Director resign from their office?
by notifying the Central Government
56
What is the effect of the acceptance of a resignation by a member of a Local Board?
Their office becomes vacant
57
Who can appoint an officiator for the Governor or a Deputy Governor if they are incapacitated or absent?
The Central Government, after considering the Central Board's recommendations
58
Can the officiator for the Governor or Deputy Governor be an officer of the Bank?
Yes, despite the restrictions in section 10
59
Who fills a casual vacancy in the office of a member of a Local Board?
The Central Board, based on recommendations from other Local Board members
60
How are casual vacancies in the office of a Director (other than those covered by sub-section (1)) filled?
By the Central Government
61
For how long does a person nominated to fill a casual vacancy hold office?
For the unexpired portion of their predecessor's term
62
How often must the Central Board meet according to the rules?
The Central Board must meet at least six times each year, with at least one meeting per quarter.
63
Who has the authority to convene meetings of the Central Board?
Meetings of the Central Board are convened by the Governor. However, any four Directors can also require the Governor to convene a meeting at any time.
64
What happens if the Governor cannot attend a Central Board meeting?
If the Governor is unable to attend, a Deputy Governor, who has been authorized by the Governor under the provisions of subsection (3) of section 8, will preside over the meeting.
65
What voting rights does the presiding officer have at Central Board meetings?
The presiding officer (either the Governor or the designated Deputy Governor) has the right to a second or casting vote in the event of an equality of votes.
66
Can the Central Board meet more than six times a year?
Yes, the Central Board can meet more than six times a year if any four Directors require the Governor to convene a meeting or if the Governor decides to call additional meetings.
67
Who can deposit money without interest into the Bank?
The Central Government, State Governments, local authorities, banks, and any other persons can deposit money without interest into the Bank.
68
What is the purpose of the Standing Deposit Facility Scheme?
The purpose of the Standing Deposit Facility Scheme is for liquidity management, allowing the Bank to accept money as deposits from banks or any other person, which is repayable with interest.
69
Who approves the terms under which money can be accepted under the Standing Deposit Facility Scheme?
The terms under which money can be accepted under the Standing Deposit Facility Scheme are approved by the Central Board of the Bank.
70
Can any person deposit money under the Standing Deposit Facility Scheme?
Yes, any person, including banks, can deposit money under the Standing Deposit Facility Scheme, where the deposit is repayable with interest.
71
Commercial and Trade Bills: duration
Maturing within: 180 days for export-related transactions. 90 days for all other transactions, excluding days of grace.
72
Agricultural Bills: duration
Maturing within 15 months from purchase or rediscount, excluding days of grace.
73
Cottage and Small-Scale Industries: duration
Must mature within 12 months, with the principal and interest fully guaranteed by the State Government.
74
Government Securities: duration
Maturing within 90 days, excluding days of grace.
75
International Bills: duration
Maturing within: 180 days for export-related transactions. 90 days for all other transactions, excluding days of grace.
76
Cottage and Small-Scale Industries: signature
Require two or more signatures, one from a State Co-operative bank, State financial corporation, or approved financial institution.
77
The Bank can purchase and sell foreign exchange from/to
scheduled banks.
78
Loans for Export Activities: to any scheduled bank or State co-operative bank against promissory notes, repayable either
on demand or within 180 days.
79
Loans for Commercial or Agricultural Activities: to scheduled banks or State co-operative banks, repayable on _____________ secured by promissory notes.
on demand or within 180 days, secured by promissory notes.
80
loans and advances to Local authorities, Scheduled banks, Co-operative banks (referred to as State co-operative banks) and State Financial Corporations tenure
not exceeding ninety days, with an exception for export-related transactions where the period can extend to one hundred and eighty days.
81
State Financial Corporations in India can receive loans and advances. These loans and advances are repayable at
the expiry of fixed periods not exceeding eighteen months from the date they are issued.
82
There is a stipulation that the State Financial Corporation must obtain prior approval from____________ for any borrowing.
the State Government
83
There's a ceiling on the amount of loans and advances that can be granted to a State Financial Corporation under this provision; the total amount should not exceed
twice the paid-up share capital of the corporation at any time.
84
National Rural Credit (Long Term Operations) Fund: Established under:
Section 42 of the NABARD Act, 1981.
85
National Rural Credit (Long Term Operations) Fund: purpose
To provide financial assistance for long-term investments in agriculture and allied activities in rural areas.
86
National Rural Credit (Stabilisation) Fund: Established under:
Section 43 of the NABARD Act, 1981.
87
National Rural Credit (Stabilisation) Fund: Purpose
To stabilize the flow of credit in rural areas, particularly during times of economic instability or natural calamities.
88
loans and advances to the Industrial Finance Corporation of India (IFCI) tenure of short term and medium term
90 days and 18 months
89
Loans and Advances to Notified Financial Institutions: tenure of short term and medium term
90 days and 18 months
90
Loans and Advances to Notified Financial Institutions: There's a cap on the medium-term loans provided under clause (b). The total amount of these loans and advances to any single financial institution must not exceed _________________at any given time.
60% of its paid-up share capital
91
Loans and Advances to the Unit Trust of India: tenure
90 days and 18 months
92
Loans and Advances to Warehousing Corporations: tenure
90 days and 18 months
93
Restrictions on Loan Amounts: Central Warehousing Corporation: The total amount of medium-term loans under clause (b) must not exceed _______________
three crores of rupees at any time.
94
Restrictions on Loan Amounts: State Warehousing Corporation : The total amount of medium-term loans under clause (b) must not exceed
fifty lakhs of rupees at any time.
95
Loans and Advances: To the National Bank for Agriculture and Rural Development (NABARD) tenure
18 months
96
Loans and Advances to the Small Industries Bank: tenure
90 days and five years
97
Loans and Advances to the Exim Bank:
90 days and five years
98
Loans and Advances to the Reconstruction Bank:
90 days and five years
99
Loans and Advances to the National Bank for Financing Infrastructure and Development or other development financial institutions:
90 days and five years
100
What is the repayment term for Ways and Means Advances
three months
101
________________________ are eligible to receive WMA from the RBI.
Both the Central Government and State Governments
102
The Reserve Bank of India (RBI) is allowed to keep deposits with the
State Bank of India (SBI).
103
repo and reverse repo in which section
17.12.AB
104
That the amount of its loans or advances in foreign currency outstanding at any time will be
no less than the outstanding amount of the loans or advances it has received from the Bank.
105
RBI is allowed to borrow money for a period not exceeding
one month
106
Borrowing of RBI is restricted to
scheduled banks only
107
The total amount borrowed from persons in India must not exceed the
Bank's capital at any given time.
108
Borrowing of RBI outside India is limited to
rincipal currency authority in their respective countries
109
These loans or advances which are at usual limitations in section 17 are provided under section 18A of RBI Act, are to be repayable either on demand or on the expiry of a fixed period not exceeding
ninety days,
110
Effect of agreements made between the Bank and certain States before
1st November 1956.
111
Nothing contained in sections—————— shall apply to the bank notes in digital form by the Bank.]
24, 25, 27, 28 and 39
112
Bank notes can be issued in the following denominational values:
2, 5, 10, 20, 50, 100, 500, 1,000, 5,000, and 10,000 rupees.
113
Additional or alternative denominations can be specified by the Central Government, based on recommendations from the Central Board, with a maximum limit of
10,000 rupees.
114
Despite what is stated in section 26, bank notes with the denominations of 500 rupees, 1,000 rupees, or 10,000 rupees that were issued before ——————, are not considered legal tender for the amount they express.
January 13, 1946
115
Despite what is stated in section 26, bank notes with the denominations of——————— that were issued before January 13, 1946, are not considered legal tender for the amount they express.
500 rupees, 1,000 rupees, or 10,000 rupees
116
The Bank is allowed to issue bank notes specifically for circulation outside India. These are called special bank notes and can be of the denominations:
5 rupees, 10 rupees, and 100 rupees.
117
The Central Government can issue special one rupee notes for circulation outside India, disregarding other provisions in this Act or
Currency Ordinance, 1940.
118
For all purposes of the Act except section 39, special one rupee notes are included in the definition of
rupee coin
119
The Bank is exempt from paying stamp duty under the——————-, for the bank notes that it issues.
Indian Stamp Act, 1899
120
Upon taking action to supersede the Central Board, the Central Government must:
Present a comprehensive report to Parliament detailing the reasons for the action and the steps taken.
This report must be laid before Parliament within —————— of issuing the notification to supersede the Board.
three months
121
The Central Government can authorize —————- to issue electoral bonds, which are bonds specifically for electoral funding as per a scheme notified by the Central Government.
scheduled banks
122
Under the———————- , no one in India except the Bank or the Central Government (as authorized by this Act) can issue promissory notes payable to bearer.
Negotiable Instruments Act, 1881
123
The assets must include gold coin, gold bullion, foreign securities, rupee coin, and rupee securities, ensuring the total value is at least equal to
liabilities of the Issue Department.
124
The combined value of gold coins, gold bullion, and foreign securities must not be less than
200 crores of rupees.
125
The value of gold coins and gold bullion alone must not be less than
115 crores of rupees.
126
Assets of RBI - Promissory notes from the National Bank for loans or advances under
clause (4E) of section 17.
127
RBI ASSETS- Eligible bills of exchange and promissory notes payable in India, as per various clauses
section 17 and clause (1) of section 18.
128
Gold coin and gold bullion are valued at a price not exceeding the
current international market price
129
Rupee coin is valued at its
face value.
130
Securities are valued at rates not exceeding the
current market rates.
131
Gold Holding Requirements:
At least————— of the gold (coin and bullion) held as assets must be in India.
17/20ths
132
Foreign securities held as assets can include: Securities payable in the currency of IMF member countries:
Balances or securities with the principal currency authority of that country, or with international financial institutions like the IMF, World Bank, IADB, etc., repayable within
10 years.
133
Foreign securities held as assets can include:
Balances or securities with other approved banking or financial institutions, also repayable within
10 years.
134
Foreign Securities as Assets: Short-term bills of exchange:
Must have at least two good signatures, drawn on and payable in the relevant foreign country, with a maturity not exceeding
g 90 days.
135
Foreign Securities as Assets: Foreign Government securities:
Must mature within
10 years.
136
Assets of RBI include any drawing rights representing a liability of the
IMF
137
The liabilities are defined as the total amount of:
Currency notes, bank notes in circulation of the Government of India
138
Temporary Reduction in Foreign Securities: Can initially last for up to
six months.
139
Temporary Reduction in Foreign Securities: Can be extended with further Central Government sanction, in periods not exceeding
three months at a time.
140
the Bank is obligated to issue currency notes or bank notes in exchange for coins that are legal tender as per the
Coinage Act, 2011.
141
The rates of exchange and conditions under which these Foreign Exchange transactions occur are set by the Central Government. These rates are influenced by India's obligations to
the International Monetary Fund (IMF).
142
Each scheduled bank is required to submit a return to the RBI, signed by
responsible officers
143
Frequency of CRR returns
Bi-weekly, on each alternate Friday. Must be sent within seven days after the reporting date.
144
If the reporting Friday is a public holiday, banks should report
the previous working day’s figures but relate it to that Friday.
145
For banks where submission is logistically challenging, a provisional return can be submitted within
seven days,
146
For banks where submission is logistically challenging, a provisional return can be submitted within seven days, followed by a final return within
twenty days of the reporting date.
147
For banks where submission is logistically challenging, such banks can submit a monthly return, due within
twenty days after the month ends, detailing the same information for the month's close.
148
When banks must submit an additional special return.
If the last Friday of a month does not fall on an alternate Friday as per the regular reporting schedule
149
special return must be sent to the RBI within ________________ days from the date to which it relates.
seven
150
If a scheduled bank does not maintain the minimum average daily balance at the RBI as stipulated in sub-section (1) or (1A) during any fortnight, it is subject to penalties. First Fortnight Penalty:
The bank must pay penal interest at a rate of 3% above the bank rate on the shortfall amount for that particular fortnight.
151
If a scheduled bank does not maintain the minimum average daily balance at the RBI If the shortfall persists into the next fortnight, the rate of penal interest increases to
5% above the bank rate.
152
If a scheduled bank has already been subject to the higher penalty rate (5% above the bank rate) as per sub-section (3), and the average daily balance remains below the prescribed minimum in the next succeeding fortnight:
(a) Any director, manager, or secretary who is knowingly and willfully involved in this default can be fined up to 500 rupees, with an additional potential fine of up to 500 rupees for each subsequent fortnight of default. (b) The RBI can prohibit the bank from accepting any fresh deposits after the said fortnight.
153
If the bank continues to accept deposits in contravention of this prohibition, each director and officer involved, either through willful action or negligence, can be fined:
Up to 500 rupees for the initial default. An additional fine of up to 500 rupees for each subsequent day the contravening deposit is retained.
154
If a scheduled bank fails to comply with the reporting requirements outlined in subsection (2), it will be liable to pay a penalty of
100 rupees for each day the failure continues.
155
Penalties under subsections (3) and (4) for not maintaining CRR and not reporting CRR must be paid within __________________________ days after receiving a demand notice from the RBI.
14
156
The RBI can notify the inclusion of a bank in the Second Schedule if: (i) The bank has
paid-up capital and reserves totaling at least five lakh rupees.
157
Exclusion from the Second Schedule: In the opinion of the Bank after making an inspection under ________________________, conducting its affairs to the detriment of the interests of its depositors,
section 35 of the 4[Banking Regulation Act, 1949]
158
When deciding whether to include or exclude a State co-operative bank or a Regional Rural Bank from the Second Schedule, the RBI can rely on a certificate from the
National Bank (NABARD)
159
The RBI is required to publish a consolidated statement every __________________ . This statement will show: The total liabilities and assets of all scheduled banks combined.
fortnight
160
Banking Company: Defined as per
section 5 of the Banking Regulation Act, 1949.
161
Any subsidiary bank as defined in the
State Bank of India (Subsidiary Banks) Act, 1959.
162
Any corresponding new bank constituted under the
Banking Companies (Acquisition and Transfer of Undertakings) Act, 1970.
163
The Bank has the authority to charge a fee for providing this credit information, with a cap set at ________________ per application.
twenty-five rupees
164
Credit information submitted by a banking company under _______________________ is to be treated as confidential.
section 45C or provided by the Bank under section 45D
165
Credit Information Companies (Regulation) Act,
Credit Information Companies (Regulation) Act, 2005.
166
_________________ is explicitly excluded from being considered a banking company for the purposes of this Chapter. Chapter IIIB not to apply in certain cases.
Tamil Nadu Industrial Investment Corporation Limited
167
Business of a Non-Banking Financial Institution: Defined as per
section 3 of the Companies Act, 1956, including foreign companies under section 591 of that Act.
168
Chit Funds Act
Chit Funds Act, 1982.
169
Hire-Purchase Act,
Hire-Purchase Act, 1972.
170
Industrial Development Bank of India Act,
Industrial Development Bank of India Act, 1964.
171
Industrial activity is defined according to
clause (c) of section 2 of the Industrial Development Bank of India Act, 1964,
172
Firm: Defined as per
the Indian Partnership Act, 1932.
173
A non-banking financial company (NBFC) cannot start or continue its business without: Maintaining a net owned fund of at least
twenty-five lakh rupees or any other amount up to hundred crore rupees, as might be specified by the Bank through a notification in the Official Gazette.
174
NBFCs already in operation at the time the Reserve Bank of India (Amendment) Act, 1997 came into effect, must apply for registration within _____________ from that commencement date.
six months
175
Existing NBFCs at the commencement of the RBI (Amendment) Act, 1997 with a net owned fund less than twenty-five lakh rupees can continue their business:
(i) For three years from the Act's commencement.
176
Existing NBFCs at the commencement of the RBI (Amendment) Act, 1997 with a net owned fund less than twenty-five lakh rupees can continue their business: The total period allowed to continue business under this section cannot exceed
six years.
177
Existing NBFCs at the commencement of the RBI (Amendment) Act, 1997 with a net owned fund less than twenty-five lakh rupees can continue their business:(i) For three years from the Act's commencement.Or for an additional period as extended by the Bank, provided the reasons are documented, with the condition that the company must inform the Bank within
three months of meeting the net owned fund requirement.
178
The Bank may cancel a certificate of registration if the NBFC: Has been barred from accepting deposits by the Bank for at least
three months.
179
An NBFC can appeal against the rejection of its registration application or cancellation of its certificate to the Central Government within __________ from the communication of the order.
thirty days
180
NBFCs must invest at least __________________ of their outstanding deposits in unencumbered approved securities in India. This calculation is based on deposits at the end of the second preceding quarter.
5% (or up to 25% as specified by the Bank)
181
If an NBFC's investment falls below the required percentage, it must pay a penal interest:
3% above the bank rate for the initial shortfall. 5% above the bank rate for each subsequent quarter if the shortfall persists.
182
If an NBFC's investment falls below the required percentage, it must pay a penal interest: Penal interest must be paid within
14 days of receiving a notice from the Bank.
183
NBFCs must establish a reserve fund and allocate at least _______________ of their net profit to this fund annually before declaring any dividends.
0.2
184
Funds from the reserve cannot be withdrawn except for purposes specified by the Bank. Any withdrawal must be reported to the Bank within
21 days.
185
Upon removal, the director: Cannot be involved with the management of any NBFC for a period up to
five years as specified in the order.
186
The newly appointed director of NBFC is : Serves at the pleasure of the Bank for up to __________ years, with possible extensions also up to ______________ years each.
three
187
super session of NBFC director can last up to __________________ years, with possible extensions, but not exceeding ___________________years in total.
five
188
The Bank has the authority to remove or debar that auditor from performing audit duties for any of the Bank's regulated entities. The debarment or removal can last for a maximum period of
three years at any one time.
189
Direct an NBFC, already under a deposit acceptance prohibition, not to sell, transfer, create charge, mortgage, or deal in any manner with its property and assets without the Bank's prior written permission. This restriction can be imposed for a period not exceeding______________________--
six months from the date of the order.
190
The Bank may file an application for the winding up of an NBFC under
Companies Act, 1956
191
The Bank may file an application for the winding up of an NBFC under the Companies Act, 1956 if: The NBFC has been barred from receiving deposits for at least
three months by a Bank order.
192
An NBFC is considered unable to pay its debt if: It has refused or failed to meet a lawful demand within
five working days at any of its offices or branches, and The Bank provides a written certification that the company cannot pay its debt.
193
Deposits held before ________________ that don't comply with sub-section (1)(No individual, firm, or unincorporated association shall accept deposits if their business includes activities mentioned in clause (c) of section 45-I.), must be repaid:
April 1, 1997,
194
Deposits held before April 1, 1997, that don't comply with sub-section (1)(No individual, firm, or unincorporated association shall accept deposits if their business includes activities mentioned in clause (c) of section 45-I.), must be repaid:
Immediately upon becoming due, or Within three years from April 1, 1997, whichever comes first.
195
Deposits held before April 1, 1997, that don't comply with sub-section (1)(No individual, firm, or unincorporated association shall accept deposits if their business includes activities mentioned in clause (c) of section 45-I.), must be repaid: The Bank may extend the repayment period by up to_________________ if the person proves inability to repay or extreme hardship, subject to conditions.
one year
196
From _____________, these entities are prohibited from issuing advertisements to solicit deposits.
April 1, 1997
197
An officer from the Bank or the State Government, who is authorized, can apply to a court with jurisdiction under the
Code of Criminal Procedure, 1973 (CrPC)
198
Resolution Through Joint Committee: The Joint Committee decides on the dispute within
three months from the date of reference.
199
Determination of Inflation Target: This setting of the target is to be done once every
five years.
200
The Central Government, in consultation with the Bank (presumably the central or reserve bank), will set an inflation target based on the
Consumer Price Index.
201
Composition of the MPC
Chairperson: The Governor of the Bank, serving in an ex officio capacity. Member: A Deputy Governor of the Bank specifically responsible for Monetary Policy, also ex officio.Member: One officer from the Bank, nominated by the Central Board, ex officio.Members: Three individuals appointed directly by the Central Government.
202
Ineligible Persons of MPC: Over __________________ of age at the time of appointment.
70 years
203
Ineligible Persons of MPC: Convicted of an offense with a sentence of imprisonment for _______________-
180 days or more.
204
Search-cum-Selection Committee of MPC
Chairperson: Cabinet Secretary. Member: Governor of the Reserve Bank of India or their representative (not below Deputy Governor rank). Member: Secretary, Department of Economic Affairs. Members: Three experts in economics, banking, finance, or monetary policy nominated by the Central Government.
205
Members appointed under clause (d) of sub-section (2) of section 45ZB serve for a term of
four years and are not eligible for re-appointment.
206
A Member can resign from the MPC at any time before the end of their four-year term by: Giving a written notice of resignation to the Central Government with at least
six weeks' notice.
207
The Bank must organize at least ____________________-- MPC meetings each year.
four
208
The schedule for the year should be published at least ___________- before the first meeting of MPC .
one week
209
A quorum of MPC requires at least _ members, one of whom must be the _______________-
four,Governor or, in his absence, the Deputy Governor who is an MPC member.
210
The Bank must publish the minutes of the MPC meeting on the ______________ following the meeting.
14th day
211
Each member's of mpc written statement explaining their vote on the resolutions, as per sub-section
(11) of section 45ZL.
212
The Bank must publish a document named the "Monetary Policy Report" once every
six months
213
Monetary Policy Report should contain
sources of inflation. Provide forecasts for inflation covering a period from six to eighteen months from the date the report is published.
214
Monetary Policy Report should contain forecasts for inflation covering a period from __________________ from the date the report is published.
six to eighteen months
215
The criteria for what constitutes a failure to meet the inflation target will be officially notified by the Central Government in the Official Gazette. This notification should occur within _____________ months from the commencement of Part I of Chapter XII of the Finance Act, 2016.
three
216
The Central Government is required to transfer rupee securities worth ________________-- crores of rupees to the Bank. These securities will be allocated by the Bank to its Reserve Fund.
five
217
The Bank must establish and maintain a fund called the "National Industrial Credit (Long Term Operations) Fund." The fund will be initially credited with:
Rs. 10 crores by the Bank.
218
The Bank must establish and maintain a fund called the "National Industrial Credit (Long Term Operations) Fund." For the first __________-- years ending on June 30, 1965, the Bank must contribute at least Rs. _________________ crores annually.
five , FIVE
219
The Bank must establish and maintain a fund called the "National Industrial Credit (Long Term Operations) Fund." For the first 5 years ending on ________________ , the Bank must contribute at least Rs. 5 crores annually.
June 30, 1965
220
Despite any provisions in the ________________________, or any other current legislation related to income-tax or super-tax, the Bank is exempt from paying income tax or super-tax on any of its income, profits, or gains.
Income-Tax Act, 1961
221
The Central Government is responsible for appointing at least _________ auditors
two
222
The auditors will serve for a term not exceeding ________ , as specified by the Central Government at the time of their appointment.
one year
223
The Bank is required to prepare and send a weekly account for both the ______________ to the Central Government.
Issue Department and the Banking Department
224
Within ____________-- months of closing the annual accounts, the Bank must transmit to the Central Government
two
225
The Bank has the power to depute its staff members to: The Development Bank, with a limitation that such deputation cannot continue beyond _____________ from the commencement of section 5 of the Public Financial Institutions Laws (Amendment) Act, 1975.
thirty months
226
The Bank has the power to depute its staff members to The Unit Trust, with the same limitation of ____________________ , but from the date notified by the Central Government under sub-section (1) of section 4A of the Unit Trust of India Act, 1963.
thirty months
227
An institution is considered substantially owned by the Bank if the Bank holds at least ___________ of the institution's capital.
0.4
228
Imprisonment up to ____________ and a fine for anyone who willfully makes a false statement or omits material information in any document or advertisement related to inviting public deposits.
3 years
229
Fine up to _______________________________________ for continued non-compliance, for failing to produce documents or information or answer questions required under the Act.
Rs. 1 lakh per offence, with an additional Rs. 5,000 per day
230
Contravention of Section 31 (regarding bills of exchange, etc.): Punishment:
Fine up to the value of the bill involved in the offence.
231
Disclosure of Prohibited Credit Information: Punishment:
Imprisonment up to 6 months, or a fine up to Rs. 1,000, or both.
232
Imprisonment up to ____________________ for unauthorized deposit acceptance or contravention of Chapter IIIB directions.
3 years and fine up to twice the amount of the deposit
233
Imprisonment up to ________________________- called by the prospectus/advertisement for non-compliance with advertisement regulations under Section 45J.
3 years and fine up to twice the amount
234
Specific Contraventions: Section 45-IA (Unauthorised Deposit Taking):
Imprisonment from 1 to 5 years and fine from Rs. 1 lakh to Rs. 25 lakh.
235
Specific Contraventions: Failure by Auditors to Comply with Bank Orders under Section 45MA:
Fine up to Rs. 10 lakh.
236
Specific Contraventions: Non-Compliance with Company Law Board Orders under Section 45QA:
Imprisonment up to 3 years and a minimum fine of Rs. 5,000 per day of non-compliance.
237
Contravention of Section 45S:
Imprisonment up to 2 years or fine up to twice the deposit amount or Rs. 2,000, whichever is more, with a minimum sentence unless justified otherwise.
238
General Contravention or Default:
Fine up to Rs. 1 lakh, with an additional Rs. 10,000 per day for continued contravention or default.
239
For contraventions or defaults under section 58B by a non-banking financial company (NBFC), the Bank can impose
a penalty up to Rs. 25,000.
240
For contraventions under section 58B(4A) or clauses (a) or (aa) of section 58B(5), the penalty could be
up to Rs. 10 lakh or twice the amount involved, whichever is higher. For continuing contraventions, an additional penalty of up to Rs. 1 lakh per day after the first day of the contravention can be imposed.
241
NBFC penalty : The penalty must be paid within _________- days from the service of the notice demanding payment.
30
242
1[THE FIRST SCHEDULE
AREAS SERVED BY VARIOUS LOCAL BOARDS
243
Western Area shall consist
Goa, Gujarat, Madhya Pradesh and Maharashtra and the Union Territories of Dadra and Nagar Haveli and Daman and Diu.
244
The Eastern Area shall consist of
States of Arunachal Pradesh, Assam, Bihar, Manipur, Meghalaya, Mizoram, Nagaland, Orissa, Sikkim, Tripura and West Bengal and the Union Territories of Andaman and Nicobar Islands.]
245
The Northern Area
Jammu & Kashmir, 3[Punjab, Haryana,] 4[Himachal Pradesh], Rajasthan and Uttar Pradesh and Union Territories of 5[Chandigarh,] 6[and Delhi].
246
The Southern Area shall consist of
States of Andhra Pradesh, 7[Karnataka], 8[Tamil Nadu] and Kerala and the 9[Union Territories of Pondicherry and 10[Lakshadweep]]. ]
247
Nothing contained in section 58 B shall apply to section ______
Section 42
functions
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