Deck 2: Microfinance and Small Finance Banks in India

Question 1

Which microfinance institution is known as the Universal Bank?

A)Bandhan Financial Services Private Ltd
B)Arohan Financial Services Private Ltd
C)Disha Microfinance Private Ltd
D)SKS Microfinance Private Ltd

Answer 1

Bandhan Financial Services Private Ltd

Question 2

Loans to poor people by banks have many limitations including lack of security and high operating cost. So to help them which type of finance system developed ?

A)Ponzi schemes
B)Micro Finance System
C)Money Laundering Schemes
D)Money tampering finance

Answer 2

Micro Finance System

Question 3

The following statements are related to Micro Finance System. Locate the wrong option ?

A)It provides micro credit having scope for small savings and remittance of funds
B)It based on the principle of livelihood creation
C)The livelihood mission means engaging in activities in a routine fashion to generate cash or non-cash income
D)None

Answer 3

None

Question 4

Who introduced the concept of Micro Finance in Bangladesh in the form of the "Grameen Bank"? He is the Nobel laureate known by many as the "father of micro finance systems".

A)C. D. Deshmukh
B)Amartya Sen
C)Muhammad Yunus
D)Sheik Haseena

Question 5

What is Pradhan Mantri Suraksha Bima Yojana (PMSBY) Life insurance

A)cover Accidental insurance
B)cover Life insurance cover
C)Overdraft up to Rs.5,000/-
D)None of above

Question 6

Which of the following is not the part of organized sector of Indian Money Market?

A)Chit Funds
B)Mutual Funds
C)Non-Banking Financial Companies
D)Reserve Bank of India

Question 7

An arrangement in which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money by way of periodical installments over a definite period and that each such subscriber shall, in his turn be entitled to the prize amount is called?

A)Chit
B)Chitty
C)Kury
D)All of the above

Question 8

What is the minimum paid up capital requirement of small finance Banks?

A)100 crore
B)200 crore
C)50 crore
D)10 crore

Question 9

Which of the following operations are undertaken by small finance banks?

A)Accepting deposits
B)Disbursing small loans
C)Sell insurance products
D)All of the above

Question 10

How much credit small finance banks has to give to priority sectors?

A)50%
B)75%
C)40%
D)80%

Question 11

Who is eligible to be a promoter of small finance banks?

A)Individuals
B)Corporates
C)Trusts
D)All of the above

Question 12

What can be the minimum initial contribution to the paid -up equity capital of small finance banks?

A)40%
B)25%
C)75%
D)50%

Question 13

To be a promoter in Small Finance Bank, resident individuals/professionals should have ____ years of experience in banking and finance

A)5
B)7
C)10
D)12

Question 14

What is the FDI Limit in Small Finance Bank?

A)26%
B)49%
C)74%
D)100%

Question 15

The promoter's minimum initial contribution to the paid-up equity capital of small finance bank shall at least be ____ per cent.

A)10%
B)25%
C)26%
D)40%

Question 16

The promoter's minimum initial contribution to the paid-up equity capital of such small finance bank shall at least be 40 per cent and gradually brought down to ____ per cent within 12 years.

A)10%
B)26%
C)25%
D)20%

Question 17

For Small Finance Bank, ____ of its loan portfolio should constitute loans and advances of upto Rs. 25 lakh.

A)25 %
B)50%
C)75%
D)95%

Question 18

Small Finance Banks are registered under which Act?

A)Companies Act, 2013
B)Banking Regulation Act, 1949
C)Reserve Bank of India Act, 1934
D)Credit Information Companies (Regulation) Act, 2005

Question 19

Small Finance Bank are licensed under which Act?

A)Banking Regulation Act, 1949
B)Reserve Bank of India Act, 1934
C)Payment and Settlement Systems Act, 2007
D)Companies Act, 2013

Question 20

Which of the following statement is wrong about Small Finance Banks?

A)It can be Business Correspondent (BC) for another bank
B)Large public sector entities and industrial and business houses cannot open Small Finance Bank
C)SFBs are encouraged to lend to SHGs
D)SFBs will be covered by the Banking Ombudsman (BO) Scheme

Question 21

Small Finance Banks and Payments Bank are a type of?

A)Shadow Bank
B)Universal Bank
C)Differentiated Bank
D)Delivery Bank

Question 22

The decision to issue an in-principle approval for setting up of a Small Finance bank will be taken by _____

A)Finance Ministry
B)CBDT
C)RBI
D)SEBI in consultation with RBI

Question 23

Identify the true statement about Small Finance Bank(SFB).

A)SFBs are not required to maintain CRR
B)SFBs cannot carry out lending activity
C)SFBs will be covered by the Banking Ombudsman (BO) Scheme.
D)SFBs can carry out all para-banking activity.

Question 24

SFBs will be permitted to use IRF for the purpose of proprietary hedging. What does F stands for in IRF?

A)Forwards
B)Funding
C)Futures
D)Focus

Question 25

Which of the following statements is/ are correct about small finance bank? 1. Small finance banks can provide Loans and advances of up to Rs 25 lakhs, primarily to micro enterprises. 2. As per the RBI rules, small finance bank have to manage a quarter of their branches in un-banked rural areas

A)Only 1
B)Only 2
C)Both
D)None