Banking Awareness Quiz – Set 62

Hello Aspirants,
Welcome to Banking Awareness Quiz in AffairsCloud.com. Here we are creating quiz covering important questions which are common for all the bank exams and other competitive exams.

1. __________ are certificates issued by banks that have overreached their priority sector lending targets.
   A. Commercial Papers
   B. Certificate of Deposits
   C. Treasury Bills
   D. Priority Sector Lending Certificates
   
   Answer & Explanation

   D. Priority Sector Lending Certificates
   Explanation:
   Domestic banks as well as foreign banks(with more than 20 branches) have to lend 40% of their total loans to eight priority sectors which consist of agriculture, micro credits, education, social infrastructure and housing so that these unprivileged sections can get credit. To encourage lending to the priority sector, the central bank has introduced the concept of Priority Sector Lending Certificates (PSLC).
   
   
2. How many types of PSLCs can be issued by the Banks?
   A. Four
   B. Five
   C. Six
   D. Eight
   
   Answer & Explanation

   A. Four
   Explanation:
   Banks can issue four types of PSLCs including three subsector PSLCs- agriculture, small and marginal farmers, micro enterprises and one PSLC for general.
   
   
3. What is the expiry date of Priority Sector Lending Certificates (PSLC)?
   A. April 1
   B. March 1
   C. June 1
   D. January 1
   
   Answer & Explanation

   A. April 1
   Explanation:
   All Priority Sector Lending Certificates(PSLCs) will be valid till March 31st and will expire on April 1st.
   
   
4. The Priority Sector Lending Certificates(PSLCs) can be traded using the RBI’s_______
   A. e-Kuber platform.
   B. NEFT
   C. RTGS
   D. None of the above
   
   Answer & Explanation

   A. e-Kuber platform.
   Explanation:
   RBI launched a platform to enable trading in the priority sector lending certificates (PSLC) through its Core Banking Solution (CBS) portal (e-Kuber). Kuber refers to Lord Kubera – the lord of wealth in Hindu Mythology.
   
   
5. The price of PSLCs will be determined on the basis of_______
   A. demand and supply
   B. Performance
   C. Both(A) and (B)
   D. None of the above
   
   Answer & Explanation

   A. demand and supply
   Explanation:
   The price of PSLCs will be determined on the basis of demand and supply that will be reflected in the auction under the RBI’s e-Kuber trading platform.
   
   
6. Which among the following is/are the different type(s) of category under priority sector?
   A. Agriculture
   B. Micro, Small and Medium Enterprises
   C. Export Credit
   D. All of the Above
   
   Answer & Explanation

   D. All of the Above
   Explanation:
   Priority Sector includes 8 different categories.
   ♦ Agriculture
   ♦ Micro, Small and Medium Enterprises(MSME)
   ♦ Export Credit
   ♦ Education
   ♦ Housing
   ♦ Social Infrastructure
   ♦ Renewable Energy
   ♦ Others
   
   
7. What is the loan limit for education in the country under priority sector?
   A. 15 lakh
   B. 10 lakh
   C. 8 lakh
   D. 20 lakh
   
   Answer & Explanation

   B. 10 lakh
   Explanation:
   Loan limit to individuals for education including vocational courses under priority sector is upto Rs.10 lakh.
   
   
8. Which among the following is/are seller(s) & buyer(s) of PSLCs?
   A. Scheduled Commercial Banks (SCBs)
   B. Regional Rural Banks (RRBs)
   C. Local Area Banks (LABs)
   D. All of the Above
   
   Answer & Explanation

   D. All of the Above
   Explanation:
   Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Local Area Banks (LABs), Small Finance Banks
   and Urban Co-operative Banks who have originated PSL eligible category loans subject to such regulations as may be issued by the Bank.
   
   
9. How many sub-categories are classified under Agriculture sector?
   A. Four
   B. Five
   C. Six
   D. Three
   
   Answer & Explanation

   D. Three
   Explanation:
   Agriculture sector has been classified under three sub-categories namely Farm credit, Agriculture infrastructure and Ancillary activities.
   
   
10. What is the maximum limit for housing loans under priority sector in metropolitan cities?
    A. 35 lakh
    B. 40 lakh
    C. 45 lakh
    D. 55 lakh
    
    Answer & Explanation

    A. 35 lakh
    Explanation:
    Loans to individuals up to Rs.28 lakh in metropolitan centres and does not exceed Rs.35 lakh.