Banking Terminology Quiz FY2024

Questions and Answers

What is the primary goal of NABARD's Digitalising Agri-Value Chain Finance (AVCF) initiative?

To eliminate all forms of financial institutions in agriculture

To independently procure loans from local lenders without collaboration

To increase the number of traditional farming methods used by farmers

To streamline financing and digitize various aspects of the agri-value chain (correct)

How much is the corpus of the Technology Facilitation Fund (TFF) set up by NABARD?

₹50 crore (correct)

₹100 crore

₹25 crore

₹150 crore

What type of support did NABARD provide for the pilot AVCF initiative?

Direct financial assistance to farmers without conditions

Subsidized crop insurance policies

Export incentives for agricultural products

Credit support from two banks (correct)

What challenges is NABARD exploring solutions for in relation to its AVCF pilots?

Field-level challenges encountered during the pilots Signup and view all the answers

What was the primary goal of the financial literacy awareness camps organized by RRBs?

To increase the number of PMJDY accounts Signup and view all the answers

Which government initiative focuses on insurance for the rural population under the schemes mentioned?

PMSBY Signup and view all the answers

Which technology is NABARD considering for purpose-bound loans?

Central Bank Digital Currency Signup and view all the answers

What purpose does the Technology Facilitation Fund (TFF) serve?

To support the development of digital technology through tech start-ups Signup and view all the answers

What specific challenge did rural communities face in Bihar according to the financial literacy program?

Limited access to livelihood opportunities Signup and view all the answers

How much grant assistance was provided to the Special Financial Literacy Programme in Bihar?

₹140.1 lakh Signup and view all the answers

How many farmer producers’ organisations (FPOs) were involved in NABARD's AVCF pilot?

10 Signup and view all the answers

What was the total amount sanctioned under the Technology Facilitation Fund during the year?

₹73.17 lakh Signup and view all the answers

Which organization was tasked by the government with promoting digital payments in agricultural markets?

NABARD Signup and view all the answers

What was the total number of new accounts opened under PMJDY as a result of the awareness camps?

1.1 lakh Signup and view all the answers

What collaborative effort did NABARD facilitate for RCBs to protect them from cyber threats?

Collective cyber risk insurance for 75 RCBs through a common RFP Signup and view all the answers

In how many states did NABARD pilot the AVCF initiative?

3 Signup and view all the answers

Which of the following was NOT mentioned as a result of the awareness camps and initiatives?

Increased access to loans Signup and view all the answers

What form of payments does the promotion by NABARD facilitate?

QR code-based payments Signup and view all the answers

What does APY stand for in the context of the financial literacy initiatives?

Atal Pension Yojana Signup and view all the answers

How many financial literacy awareness camps were organized across the country by the RRBs?

640 Signup and view all the answers

What percentage of the total ST refinance was disbursed to state cooperative banks (StCBs) during FY2024?

73.3% Signup and view all the answers

During FY2024, how much did the disbursement under ST credit support of NABARD increase compared to FY2023?

15% Signup and view all the answers

Which region received the smallest proportion of ST refinance during FY2024?

East Signup and view all the answers

What was the amount of total ST refinance during FY2024?

₹1.8 lakh crore Signup and view all the answers

Which financial types experienced a combined increase of 16% in disbursements during FY2024?

Regional Rural Banks (RRBs) and Small Finance Banks (SFBs) Signup and view all the answers

Which financial support is NOT mentioned as having received an allocation during FY2024?

Special Liquidity Facility (SLF) Signup and view all the answers

What was the proportion of ST refinance disbursed to the southern region during FY2024?

42.1% Signup and view all the answers

What type of operation does the ST (SAO) stand for?

Short-Term Credit for Seasonal Agricultural Operations Signup and view all the answers

What new connectivity technology is being introduced by NABARD to enhance banks' communication systems?

HTS VSAT and Dual LTE Signup and view all the answers

Which regions are specifically targeted by NABARD's scheme for compensating Business Correspondents (BCs)?

Hilly states including Jammu & Kashmir and Himachal Pradesh Signup and view all the answers

What type of data technologies will NABARD leverage for achieving financial inclusion?

Big Data, Artificial Intelligence, and Quantum Computing Signup and view all the answers

Which aspect of connectivity disparity does HTS and SD-WAN address?

Regional connectivity disparity Signup and view all the answers

What is one objective of NABARD's investment in technology and digitalisation?

To mitigate credit risk and improve access to credit Signup and view all the answers

What was a key action taken by NABARD to enhance digital transactions among farmers?

Deployment of POS machines Signup and view all the answers

Which program is associated with providing pension benefits to individuals?

Atal Pension Yojana Signup and view all the answers

What was one method employed to increase financial literacy in rural areas?

Street plays in market areas Signup and view all the answers

Which of the following best describes the primary objective of the collaborative efforts in rural Bihar?

To promote inclusive growth and development Signup and view all the answers

What role do QR code-based payments serve in NABARD's strategy?

They facilitate quick and easy digital payments Signup and view all the answers

Which initiative is not specifically listed as a financial literacy or welfare program?

Digital Banking Access Program Signup and view all the answers

What significant change in behavior does NABARD aim to encourage among farmers?

Increased transparency in financial transactions Signup and view all the answers

Which of these does NOT represent a major initiative implemented by NABARD?

Availability of virtual banking without restrictions Signup and view all the answers

What does PMAY–G stand for?

Pradhan Mantri Awas Yojana–Gramin Signup and view all the answers

What is one significant focus of NABARD as a development institution?

Addressing demand-side challenges in finance Signup and view all the answers

What key infrastructure does the WLGSP establish for agriculture?

The WLGSP establishes grain storage infrastructure, including warehouses and silos. Signup and view all the answers

Which government schemes converge at the PACS level under WLGSP?

Schemes such as the Agriculture Infrastructure Fund, Agricultural Marketing Infrastructure, and Pradhan Mantri Krishi Sinchayee Yojana converge at the PACS level. Signup and view all the answers

What is a prominent role of NABARD in managing agricultural financing?

NABARD manages interest subvention, credit-linked subsidies, and refinance products for various agricultural initiatives. Signup and view all the answers

How does NABARD support cooperatives financially?

NABARD supports cooperatives by providing direct refinance to DCCBs and credit facilities for federations. Signup and view all the answers

What additional infrastructure does the WLGSP provide besides storage?

The WLGSP also provides procurement centres, custom hiring centres, and primary processing centres. Signup and view all the answers

What types of entities does NABARD extend refinance to?

NABARD extends refinance to rural financial institutions (RFIs), state cooperative banks (SCBs), and non-banking financial companies (NBFCs). Signup and view all the answers

What are the two main categories of loans that NABARD extends to government and state-owned corporations?

NABARD extends short-term loans for procurement and long-term loans for infrastructure projects. Signup and view all the answers

What is the purpose of the Assistance to sugar mills under NABARD’s management?

The purpose is to support ethanol production through loans and financial assistance. Signup and view all the answers

What was the total disbursement of short-term refinance for FY2024 compared to its target?

The total short-term refinance disbursement was ₹1.8 lakh crore, which is 121% of the target. Signup and view all the answers

Which program aids in enhancing the efficiency of agricultural processing units?

The Pradhan Mantri Formalisation of Micro-Food Processing Enterprises aids processing units' efficiency. Signup and view all the answers

How much was the target for long-term refinance disbursement in FY2024?

The target for long-term refinance disbursement in FY2024 was ₹1.7 lakh crore. Signup and view all the answers

What strategic approach is implemented by NABARD to protect rural credit cooperatives?

NABARD facilitates collaborative efforts to protect rural credit cooperatives from cyber threats. Signup and view all the answers

In what way does NABARD enhance farmer communication with technology?

NABARD introduces new connectivity technologies to enhance communication systems for banks. Signup and view all the answers

What role do concessional refinance and government support play in NABARD's operations?

Concessional refinance, supported by the Government of India and RBI, helps augment credit for agriculture and allied activities. Signup and view all the answers

What was the performance of long-term refinance disbursement in FY2024 compared to its target?

The performance of long-term refinance disbursement was moderate, achieving 76% of the target. Signup and view all the answers

What benefits does NABARD provide through the Short-Term Cooperative Rural Credit Fund (STCRCF)?

NABARD provides concessional refinance for short-term credit needs through the STCRCF to enhance rural credit availability. Signup and view all the answers

Identify the states included in the South region of India as listed in the content.

Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Puducherry, and Lakshadweep. Signup and view all the answers

What types of loans comprise the GLC offered by RFIs and SCBs?

The GLC offered by RFIs and SCBs consists of both short-term working capital and long-term capital formation funds. Signup and view all the answers

List the states that fall under the North East region according to the provided content.

Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Tripura, Nagaland, and Sikkim. Signup and view all the answers

Explain the significance of establishing a negotiable warehouse receipt (NWR) system as mentioned in the content.

The NWR system aims to improve transparency and liquidity in the agricultural market, benefiting farmers. Signup and view all the answers

What does the acronym MSME stand for, and why is it important in the context provided?

MSME stands for Micro-, Small-, and Medium-Sized Enterprises; they are crucial for boosting employment and economic growth. Signup and view all the answers

What regions are covered under NABARD's initiatives for enhancing digital payments in agricultural markets?

The regions mentioned for agricultural initiatives are not explicitly detailed but include diverse areas across India. Signup and view all the answers

What role does the incentive scheme for BCs and CSPs play in financial inclusion efforts?

It motivates and empowers them by providing financial incentives to offset transportation costs and encourage transaction activity. Signup and view all the answers

How does the Learning Management System aim to enhance training for financial inclusion?

It offers 64 courses in multiple languages through an e-learning platform, providing extensive video content for skill development. Signup and view all the answers

What significance does the campaign on ‘Cooperation amongst Cooperatives’ hold for rural economy?

It promotes collaboration and financial inclusion through digital banking, which can drive sustainable growth in rural areas. Signup and view all the answers

What is the primary qualification criterion for BCs to receive the monthly incentive?

BCs must achieve a monthly average of 50 transactions. Signup and view all the answers

Describe the impact of digital banking initiatives on the rural economy as mentioned in the content.

Digital banking initiatives foster financial inclusion and cooperation, which revitalizes the rural economy and supports sustainable growth. Signup and view all the answers

What advantages does the implementation of an e-learning platform bring to skill development?

It provides a scalable, accessible method for delivering extensive training content in various languages. Signup and view all the answers

How does the incentive scheme specifically address the challenges faced by BCs in NER states?

It offsets high transportation costs that BCs incur in these hilly and remote areas. Signup and view all the answers

What was the total number of new enrolments under PMSBY as a result of the financial literacy camps?

1.8 lakh Signup and view all the answers

What type of grant assistance was provided for the Special Financial Literacy Programme in Bihar?

₹140.1 lakh Signup and view all the answers

What transformative potential does digital banking hold according to the conclusion provided?

It can lead to remarkable improvements in financial inclusion and the revitalization of the rural economy. Signup and view all the answers

Identify one of the main challenges faced by rural communities in Bihar regarding banking services.

Lack of awareness about banking services Signup and view all the answers

What collaborative effort is mentioned that aims to improve financial skill training?

The Learning Management System being developed in collaboration with the National Academy of RUDSETI and IIT Madras. Signup and view all the answers

Which organization implemented the Special Financial Literacy Programme in Bihar?

Dakshin Bihar Gramin Bank Signup and view all the answers

How many hours of video content will the e-learning platform provide for skill development?

It will offer 4,400 hours of video content. Signup and view all the answers

How many financial literacy awareness camps were organized by RRBs across the country?

640 Signup and view all the answers

What digital payment method is promoted by NABARD in Agricultural Produce and Livestock Market Committees?

QR code-based payments Signup and view all the answers

What significant achievement resulted from the organized financial literacy camps?

Opening of 1.1 lakh new PMJDY accounts Signup and view all the answers

What is one of the goals of the project implemented in Bihar by Dakshin Bihar Gramin Bank?

Enabling access to banking services for rural communities Signup and view all the answers

Under which scheme did the financial literacy program result in 34,279 enrollments?

APY (Atal Pension Yojana) Signup and view all the answers

Study Notes

Overview of Financial Institutions

Regional Rural Banks (RRB), Small Finance Banks (SFB), State Cooperative Banks (StCB), and others are crucial for rural finance.
Special Liquidity Facility (SLF) allocation was not provided by the Reserve Bank of India for FY2024.

Short-Term Refinance Performance

Total short-term (ST) refinance for FY2024 was ₹1.8 lakh crore.
73.3% of ST refinance was allocated to State Cooperative Banks.
NABARD reported a 15% increase in ST credit support, with RRBs and SFBs seeing a combined increase of 16%.
Southern region received the largest share (42.1%) of ST refinance, followed by North (18.7%), Central (17.1%), and East (14.3%).

Digitalising Agri-Value Chain Finance (AVCF)

NABARD initiated AVCF to enhance financing and digitization in agriculture.
Launched pilot projects in three states with ten farmer producers' organizations and two banks.
Focus on overcoming field-level challenges using Central Bank Digital Currency for purpose-bound loans.

Technology Facilitation Fund (TFF)

NABARD established a ₹50 crore fund to support digital technology development.
Two proposals were sanctioned, totaling ₹73.17 lakh for tech startups.

Cybersecurity Initiatives

NABARD facilitated collective cyber risk insurance for 75 Rural Cooperative Banks (RCBs) to provide better coverage at lower premiums.

Financial Literacy and Inclusion Efforts

Conducted 640 financial literacy camps, leading to the opening of 1.1 lakh new PMJDY accounts.
New enrolments: 1.8 lakh under PMSBY, 94,209 under PMJJBY, and 34,279 under Atal Pension Yojana (APY).

Promotion of Digital Payments

NABARD was assigned to promote digital payments in Agricultural Produce & Livestock Market Committees.
Organized approximately 400 financial and digital literacy camps, including street plays to enhance awareness.
Deployment of POS machines and collaborations with payment aggregators for QR code payments.

Future Initiatives and Technological Investment

NABARD focuses on addressing credit access inequities through technology and digitalization.
Plans to leverage big data, AI, and quantum computing to enhance financial inclusion.
Introduction of High-Throughput Satellite (HTS) connectivity technology for improved banking services in underserved areas.
A new compensation scheme for Business Correspondents (BCs) in hilly states to incentivize monthly transaction targets.

Refinance Activities

NABARD provides refinance to rural financial institutions (RFIs), scheduled commercial banks (SCBs), and non-banking financial companies (NBFCs) against their loan portfolios, addressing diverse rural credit needs.
Direct loans are given to governments and state-owned corporations for short-term procurement and long-term infrastructure projects.
RFIs and SCBs offer government loan credit (GLC) for agricultural activities, covering both short-term working capital and long-term capital formation funds.
Concessional refinance is facilitated through various funds like STCRCF, Short-Term Regional Rural Bank Fund, and Long-Term Rural Credit Fund, enhancing credit availability for agriculture and allied activities.

Refinance Trends

Short-term refinance disbursement reached ₹1.8 lakh crore, achieving 121% of the FY2024 target, showcasing significant success.
Long-term refinance disbursement was moderate, attaining 76% of the ₹1.7 lakh crore target for FY2024.
The Warehousing and Logistics Grant Support Program (WLGSP) aims to establish grain storage infrastructure through convergence of government schemes at the PACS level, promoting various agri-infrastructure developments.

Financial Products and Support

NABARD actively manages interest subvention, credit-linked subsidies, and provides support for initiatives like Kisan Credit Card (KCC) saturation.
Direct refinance is also offered to District Central Cooperative Banks (DCCBs) and federations to strengthen cooperative financing.
A digital banking initiative launched in Gujarat highlights the transformative potential of digital finance by enhancing rural economic prospects through cooperative financial inclusion.

Incentive Schemes

An incentive scheme for Customer Service Points (CSPs) and business correspondents (BCs) operating in North Eastern states aims to reduce transportation costs, providing ₹1,000 per month to qualifying BCs to encourage financial inclusion.
Qualifying BCs must perform an average of 50 transactions monthly to receive incentives, in addition to their current commission structure.

Skill Development Initiatives

A Learning Management System project for Rural Self Employment Training Institutes (RSETIs) is being developed to enhance skill training and financial inclusion through an e-learning platform, featuring 64 courses in 11 languages.
The platform will deliver over 4,400 hours of video content for skill development.

Financial Awareness and Digital Payments Promotion

Collaborative efforts led to the organization of 640 financial literacy camps and the opening of 1.1 lakh new Pradhan Mantri Jan Dhan Yojana (PMJDY) accounts.
NABARD is tasked with promoting digital payments in Agricultural Produce and Livestock Market Committees to facilitate QR code-based transactions.

Special Financial Literacy Program

A project in Bihar implements a Special Financial Literacy Programme to enhance access to banking services for rural communities, supported by a budget of ₹140.1 lakh.
Communities faced challenges in understanding banking services and lacked livelihood opportunities, addressed through this initiative.

Geographic Regions

South: Andhra Pradesh, Telangana, Karnataka, Kerala, Tamil Nadu, Puducherry, Lakshadweep
West: Gujarat, Goa, Maharashtra, Dadra & Nagar Haveli, Daman & Diu
North: Haryana, Himachal Pradesh, Punjab, Rajasthan, Jammu & Kashmir, Delhi, Chandigarh
Central: Madhya Pradesh, Chhattisgarh, Uttar Pradesh, Uttarakhand
East: Bihar, Jharkhand, Odisha, West Bengal, Andaman & Nicobar Islands
North East: Assam, Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Tripura, Nagaland, Sikkim

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Description

Test your knowledge of banking terminologies such as Regional Rural Bank, Small Finance Bank, and Special Liquidity Facility. This quiz covers key concepts relevant to the financial system and recent guidelines from the Reserve Bank of India. Challenge yourself and see how well you understand these important terms!