Important Question Based on Small Banks and Payment Banks

By | December 27, 2017

Here we are giving a list of some Important Question which are Based on Small Banks and Payment Banks and are very important in view of banking exams.
Question 1. The Reserve Bank of India had granted ‘in-principle’ approval to how many applicants to set up Small Finance Banks.
Answer: 10

Question 2.
What is the validity of the “in-principle” approval granted to enable the applicants to comply with the requirements and fulfil other conditions as stipulated by the RBI?
Answer: 18 months

Question 3.
Under what act the RBI issued a license to open the small finance bank?
Answer: Banking Regulation Act, 1949

Question 4.
The RBI issued license under what section of the Banking Regulation Act, 1949?
Answer: Section 22

Question 5.
Which committee is associated with small banks?
Answer: Usha Thorat ( Updated Time : 11 Pm, 26 Dec 17 )

Question 6.
How many years of experience an individual should have in banking and finance, companies and Societies to become eligible as promoters to set up small banks.
Answer: 10 years

Question 7.
How many years of professional experience a promoter/promoter groups should have in order to be eligible to promote small finance banks.
Answer: 5 years

Question 8.
Small Finance Bank should be registered as a public limited company under which act?
Answer: The Companies Act, 2013

Question 9.
What should be the promoter’s contribution in Small finance banks?
Answer: At least 40 %

Question 10.
Promoter’s contribution of 40% should be for how much time?
Answer: 5 years. The shareholding should be brought down to 40 % by the end of the 5th year, to 30 percent by the end of 10th year and to 26 percent in 12 years.

Question 11.
The maximum loan size to single/group borrowers/issuers would be restricted to what percent of total capital funds?
Answer: 15%

Question 12.
Loans and advances (up to Rs 25 lakhs), primarily to micro enterprises, should constitute at least what percent of the loan portfolio?
Answer: 50%

Question 13.
For the first three years, what percent of branches of small finance banks should be in unbanked rural areas?
Answer: 25%

Question 14.
Initially, for how many years prior approval is required in case of branch expansion?
Answer: 3 years

Question 15.
The small finance banks are required to extend what percent of their Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank?
Answer: 75%

Question 16.
Which is India’s first small bank?
Answer: Capital Small Finance Bank

Question 17.
Maximum loan size to an individual cannot exceed what percent of total capital funds?
Answer: 10%

Question 18.
Maximum loan size in case of a group cannot exceed what percent of total capital funds?
Answer: 15%

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