Banking Principles and Functions Quiz

Distinguish between Public Sector Bank and Private Sector Bank.

Public Sector Banks are owned by the government, while Private Sector Banks are owned by private individuals or corporations.

What are the principles of Banking?

The principles of Banking include safety, liquidity, and profitability.

Explain the Traditional Functions of Central Bank.

The traditional functions of a Central Bank include issuing currency, acting as banker to the government, and controlling credit.

Discuss the causes of Bank failures.

Bank failures can be caused by poor risk management, economic downturns, or fraud. Signup and view all the answers

What are the features of Retail Banking?

Retail Banking focuses on individual customers and offers services like savings accounts, loans, and credit cards. Signup and view all the answers

When was the Rural Infrastructure Development Fund established?

The Rural Infrastructure Development Fund was established in the financial year ________. Signup and view all the answers

Elaborate on the features of Corporate Banking.

Corporate Banking deals with larger businesses and provides services like project financing, cash management, and trade finance. Signup and view all the answers

What type of deposit is a time deposit?

Time deposit. Signup and view all the answers

Who do retail banks serve the needs of?

Retail banks serve the needs of _____________. Signup and view all the answers

In which year was the Banking Ombudsman scheme revised?

In ____________ year, the Banking Ombudsman scheme was revised. Signup and view all the answers

Which of the following is a Regional Rural Bank?

Regional Rural Bank. Signup and view all the answers

What type of bank is Indian Overseas Bank?

Public sector bank. Signup and view all the answers

Explain the role of NABARD in Micro Finance sector.

NABARD provides refinance facilities to institutions providing microfinance to farmers and rural artisans. Signup and view all the answers

Describe the challenges faced by the Micro Finance Industry.

Some challenges include high cost of funds, lack of awareness among borrowers, and operational sustainability. Signup and view all the answers

Discuss the advantages of Financial Inclusion.

Financial inclusion promotes economic growth, reduces poverty, and enhances access to financial services for all. Signup and view all the answers

Explain the role of SIDBI in Micro Finance sector.

SIDBI provides financial assistance and refinancing to institutions engaged in microfinance activities. Signup and view all the answers

Discuss the measures taken by RBI for Financial Inclusion.

RBI has introduced initiatives like no-frills accounts, mobile banking, and financial literacy programs to promote financial inclusion. Signup and view all the answers

Discuss the measures taken by RBI & NABARD for Financial Inclusion.

RBI and NABARD collaborate on various schemes like SHG-Bank Linkage Program to enhance financial inclusion in rural areas. Signup and view all the answers

What are the features of Rural Banking?

Some features of Rural Banking include providing financial services in rural areas, promoting financial inclusion, and supporting agricultural and rural development. Signup and view all the answers

Explain the importance of Rural Banking.

Rural Banking is important for promoting financial access in rural areas, supporting agriculture, and fostering economic development. Signup and view all the answers

What are the powers and duties of the Banking Ombudsman?

The Banking Ombudsman has the power to resolve customer complaints against banks and ensure compliance with banking regulations. Signup and view all the answers

Describe the advantages of Universal Banking.

Universal Banking offers diversification of services, economies of scale, and enhanced customer convenience through a one-stop financial shop. Signup and view all the answers

Explain the term Branchless Banking.

Branchless Banking refers to providing banking services without physical branches, often using technology like mobile phones or agents. Signup and view all the answers

Discuss the services offered by Merchant Banking.

Merchant Banking services include capital raising, corporate advisory, mergers and acquisitions, and underwriting securities. Signup and view all the answers