Topicwise Banking Awareness Quiz – 8 – Small Finance Banks

Hello and welcome to exampundit. As a part of our Topicwise Banking Awareness Quiz series, today we are sharing Important Questions related to Small Finance Banks for upcoming IBPS Clerk Mains, Syndicate Bank & Canara Bank PGDBF 2018 as well as the most awaited SBI PO 2018.

Small Finance Banks

The following set consists all the important questions related to Small Finance Banks(eg. Headquarters, Limits, Capital Funds etc.).

 

  1. The small finance bank shall primarily undertake basic banking activities of acceptance of deposits and lending to _________________.

(1) small business units

(2) small and marginal farmers

(3) micro and small industries

(4) unorganised sector entities

(5) All of the above

Answer

Option: 5

 

  1. What should be the promoter’s minimum initial contribution to the paid-up equity capital of small finance bank?

(1) 75%

(2) 40%

(3) 50%

(4) 49%

(5) 100%

Answer

Option: 2

 

 

  1. The small finance banks requires to lend what per cent of its Adjusted Net Bank Credit (ANBC) to the sectors eligible for classification as priority sector lending (PSL) by the Reserve Bank?

(1) 20%

(2) 100%

(3) 75%

(4) 50%

(5) 49%

Answer

Option: 3

 

 

  1. Right after the inception, for how many years, 25 per cent of branches of the small finance banks are required to be in unbanked rural areas?

(1) 2 years

(2) 3 years

(3) 5 years

(4) 4 years

(5) 7 years

Answer

Option: 2

 

 

  1. The maximum loan size and investment limit for a small finance bank to a group borrower is restricted to what percent of the capital fund?

(1) 50%

(2) 10%

(3) 20%

(4) 15%

(5) 25%

Answer

Option: 4

 

 

  1. Reserve Bank of India states, that if a promoter setting up a small finance bank desires to set up a Payments Bank, it should set up both types of banks under a NOFHC structure. What does C stands for?

(1) Company

(2) Council

(3) Correspondent

(4) Corporation

(5) Capital

Answer

Option: 1 – Non-Operative Financial Holding Company

 

 

  1. Which of the following statement(s) is/are true about Small Finance Banks?

(I) The small finance banks will come under the purview of RBI’s Banking Ombudsman Scheme, 2006.

(II) The small finance bank cannot be a Business Correspondent (BC) for another bank.

(III) The Board of the small finance bank should have a majority of independent Directors.

(1) Only I

(2) Both I and III

(3) Both II and III

(4) Both I and II

(5) All of them

Answer

Option: 5

 

 

  1. Which of the following is the first Small Finance Bank of the country?

(1) AU Small Finance Bank

(2) Capital Small Finance Bank

(3) Equitas Small Finance Bank

(4) ESAF Small Finance Bank

(5) Ujjivan Small Finance Bank

Answer

Option: 2

 

 

  1. AU Small finance bank is headquartered in _________.

(1) Jaipur

(2) Bengaluru

(3) Pune

(4) Ludhiana

(5) Ahmedabad

Answer

Option: 1

 

 

  1. Under which section of the Banking Regulation Act, 1949, small finance banks are licensed?

(1) Section 21

(2) Section 23

(3) Section 22

(4) Section 24

(5) Section 20

Answer

Option: 3

 

 

  1. Utkarsh Small Finance Bank is headquartered at ____________.

(1) Chennai

(2) Mumbai

(3) Jalandhar

(4) Varanasi

(5) Bengaluru

Answer

Option: 4

 

 

  1. Capital Small Finance Bank is headquartered at ________.

(1) Bengaluru

(2) Jalandhar

(3) Varanasi

(4) Jaipur

(5) Pune

Answer

Option: 2

 

 

  1. North East Small Finance Bank Limited, north-east India’s first small finance bank is headquartered at _____________.

(1) Guwahati

(2) Agartala

(3) Shillong

(4) Imphal

(5) Aizwal

Answer

Option: 1

 

 

  1. What is the minimum paid-up equity capital for small finance banks?

(1) ₹500 crore

(2) ₹200 crore

(3) ₹100 crore

(4) ₹50 crore

(5) ₹300 crore

 

Answer

Option: 3

 

 

  1. Fincare Small Finance Bank is headquartered at ________.

(1) Jaipur

(2) Pune

(3) Mumbai

(4) Ahmedabad

(5) Lucknow

Answer

Option: 4

 

  1. Janalakshmi Small Finance Bank is headquartered at __________.

(1) Bengaluru

(2) Chennai

(3) Mumbai

(4) Surat

(5) Kolkata

Answer

Option: 1

 

 

 

  1. Ujjivan Small Finance Bank is headquartered at ________.

(1) Chennai

(2) Bengaluru

(3) New Delhi

(4) Gurugram

(5) Kochi

Answer

Option: 2

 

 

 

  1. A Small Finance Bank is required to maintain a minimum capital adequacy ratio of what percent of its risk weighted assets (RWA) on a continuous basis?

(1) 10%

(2) 7.5%

(3) 15%

(4) 12%

(5) 9%

Answer

Option: 3

 

 

 

  1. What is the maximum FDI limit in Small Finance Bank?

(1) 100%

(2) 49%

(3) 51%

(4) 74%

(5) 99%

Answer

Option: 4- Small Finance Banks follow the FDI policy of Private Sector Banks. As per the current FDI policy, the aggregate foreign investment in a private sector bank from all sources will be allowed up to a maximum of 74 per cent of the paid-up capital of the bank (automatic up to 49 per cent and approval route beyond 49 per cent to 74 per cent).

 

 

 

  1. The maximum loan size and investment limit for a small finance bank to a single borrower is restricted to what percent of the capital fund?

(1) 10%

(2) 1%

(3) 15%

(4) 2%

(5) 5%

Answer

Option: 1

 

 

 

  1. For a small finance bank, at least 50% of its loan portfolio should consist loans and advances up to what amount?

(1) ₹10 lakhs

(2) ₹15 lakhs

(3) ₹25 lakhs

(4) ₹20 lakhs

(5) ₹30 lakhs

Answer

Option: 3

 

 

 

  1. Which of the following committee recommended the creation of Small Finance Banks in India?

(1) Arvind Subhramaniam Committee

(2) Nachiket Mor Committee

(3) Raghuram Rajan Committee

(4) Bimal Jalan Committee

(5) Usha Thorat Committee

Answer

Option: 5

 

 

 

  1. Who among the following chaired the External Advisory Committee (EAC) to evaluate applications received for small finance banks?

(1) Bimal Jalan

(2) Nachiket Mor

(3) Arvind Panagariya

(4) Usha Thorat

(5) Amitabh Kant

Answer

Option: 4

 

  1. Anyone apart from the promoters of a Small Finance Bank cannot have a shareholding more than _____ of the paid-up capital.

(1) 10%

(2) 25%

(3) 26%

(4) 39%

(5) 15%

Answer

Option: 1

 

 

  1. ESAF Small finance Bank is headquartered at _____________.

(1) Chennai

(2) Bengaluru

(3) New Delhi

(4) Gurugram

(5) Kochi

Answer

Option: 1

 

Liked the set? You will love the article on Small Finance Banks.

 

3 Sets Only on Goods and Services Tax

 

Regards

Team EP

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