Reserve Bank of India Deposit Requirements

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Explain the requirement for life insurance companies to maintain deposits with the Reserve Bank of India as per Section 7.

Life insurance companies are mandated to maintain a sum equivalent to 1% of the total gross premium written in India in any financial year commencing after 31st March 2000, but not exceeding $10$ Crores with the Reserve Bank of India in the form of Cash or approved securities.

Explain the deposit requirement for general insurance business in India as per Section 7.

General insurance business is required to maintain a sum equivalent to 3% of the total gross premium written in India in any financial year commencing after 31st March 2000, but not exceeding $10$ Crores with the Reserve Bank of India.

What is the prescribed deposit requirement for reinsurance companies?

Reinsurance companies are required to maintain a flat sum of $20$ Crores with the Reserve Bank of India.

How are separate books of account maintained for different classes of insurance business?

Separate books of account are required to be maintained for each class of business, and separate companies will have to be formed for Life, Non-Life, or Reinsurance, automatically fulfilling this provision.

What are the regulations framed by IRDA under Section 11 regarding financial statements?

IRDA has framed Regulations for Financial Statements which provide for forms of Revenue Account, Profit and Loss Account, and Balance Sheet along with the form of Management Report and some of the documents annexed to the financial statements.

What are the two separate terms that make up the word 'interview'?

'Inter' and 'view' are the two separate terms that make up the word 'interview', meaning seeing each other.

What is the purpose of an interview?

The purpose of an interview is to check the capability of the interviewee in joining the desired post and to analyze their job-related proficiency, abilities, and technicalities.

What is the difference between a structured and an unstructured interview?

A structured interview is a formal conversation where recruiters ask predetermined questions, while an unstructured interview is open-ended and free-flowing without predetermined questions.

What is a traditional one-on-one interview?

A traditional one-on-one interview is a professional face-to-face interview that permits direct questions and follow-ups.

What is the role of an interviewer in an interview?

The role of an interviewer is to seek answers from the interviewee and to conduct a formal conversation to assess the interviewee's capabilities and job-related skills.

Test your knowledge about the deposit requirements mandated by Sections 7 to 9 for life insurance and general insurance companies with the Reserve Bank of India. Understand the percentage of total gross premium that needs to be maintained and the forms in which the deposits can be made.

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