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Banking Awareness Quiz – Set 84

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. What is the full form of RDA?
    A. Rupee Draft Arrangement
    B. Rupee Demand Arrangement
    C. Rupee Draw Arrangement
    D. Rupee Drawing Arrangement
    E. None of the Above
    Answer & Explanation
    D. Rupee Drawing Arrangement
    Explanation:
    Rupee Drawing Arrangement (RDA) is a channel to receive cross-border remittances from overseas jurisdictions. Under this arrangement, the Authorised Category I banks enter into tie-ups with the non-resident Exchange Houses in the FATF compliant countries to open and maintain their Vostro Account.
    Vostro Account means Local currency account maintained by a local bank for a foreign (correspondent) bank. For the foreign bank it is a Nostro account.

  2. FATF stands for ________
    A. Financial Action Task Force
    B. Financial Asset Task Force
    C. Financial Asset Trade Force
    D. Financial Action Trade Force
    E. None of the Above
    Answer & Explanation
    A. Financial Action Task Force
    Explanation:
    The Financial Action Task Force (on Money Laundering) (FATF), also known by its French name, Groupe d’action financière (GAFI), is an intergovernmental organization founded in 1989 on the initiative of the G7 to develop policies to combat money laundering.

  3. FATF, an Intergovernmental Organization is headquartered in __________
    A. Newyork, USA
    B. Geneva, Switzerland
    C. Italy, Rome
    D. Paris, France
    E. None of the Above
    Answer & Explanation
    D. Paris, France
    Explanation:
    The Financial Action Task Force (on Money Laundering) (FATF), also known by its French name, Groupe d’action financière (GAFI), is an intergovernmental organization founded in 1989
    The FATF Secretariat is housed at the headquarters of the OECD in Paris.

  4. How many members are there in FATF?
    A. 42
    B. 43
    C. 40
    D. 37
    E. 39
    Answer & Explanation
    D. 37
    Explanation:
    There are currently 37 members of the FATF; 35 jurisdictions and 2 regional organisations (the Gulf Cooperation Council and the European Commission). These 37 Members are at the core of global efforts to combat money laundering and terrorist financing.

  5. Which of the following is an observer of FATF?
    A. Ireland
    B. Israel
    C. Saudi Arabia
    D. Both (B) and (C)
    E. All of the Above
    Answer & Explanation
    D. Both (B) and (C)
    Explanation:
    FATF Observer Countries:
    Israel
    Saudi Arabia

  6. _________ is a way of transferring personal remittances from abroad to beneficiaries in India
    A. RDA
    B. MTSS
    C. Both (A) and (B)
    D. All of the Above
    E. None of the Above
    Answer & Explanation
    B. MTSS
    Explanation:
    Money Transfer Service Scheme (MTSS) is a way of transferring personal remittances from abroad to beneficiaries in India.
    Only inward personal remittances into India such as remittances towards family maintenance and remittances favouring foreign tourists visiting India are permissible. Under the scheme there is a tie-up between reputed money transfer companies abroad known as Overseas Principals and agents in India known as Indian Agents who would disburse funds to beneficiaries in India at ongoing exchange rates.

  7. The Overseas Principal should obtain necessary authorisation from the Reserve Bank of India under the provisions of which Act to commence/ operate a payment system?
    A. Reserve Bank of India Act–1934
    B. Banking Companies (Acquisition and Transfer of Undertakings) Act–1970
    C. Banking Regulation (Companies) Rules, 1949
    D. Payment and Settlement Systems Act (PSS Act), 2007
    E. None of the Above
    Answer & Explanation
    D. Payment and Settlement Systems Act (PSS Act), 2007
    Explanation:
    The Overseas Principal should obtain necessary authorisation from the Department of Payment and Settlement Systems, Reserve Bank of India under the provisions of the Payment and Settlement Systems Act (PSS Act), 2007 to commence/ operate a payment system.

  8. What is the maximum limit on the amount of money that can be sent under MTSS?
    A. USD 2,500
    B. USD 1,500
    C. USD 1,000
    D. USD 2,200
    E. None of the Above
    Answer & Explanation
    A. USD 2,500
    Explanation:
    A cap of USD 2,500 has been placed on individual remittances under the Money Transfer Service Scheme (MTSS)

  9. How many remittances can be received by a single individual beneficiary under the scheme during a year?
    A. 40
    B. 45
    C. 40
    D. 35
    E. 30
    Answer & Explanation
    E. 30
    Explanation:
    Thirty remittances can be received by a single individual beneficiary under the scheme during a calendar year.

  10. What is the maximum limit on cash payment that is to be made to the beneficiary under MTSS in India?
    A. Rs. 25,000
    B. Rs. 15,000
    C. Rs. 10,000
    D. Rs. 40,000
    E. Rs. 50,000
    Answer & Explanation
    E. Rs. 50,000
    Explanation:
    Amounts up to INR 50,000/- may be paid in cash to a beneficiary in India. These can also be loaded on to a pre-paid card issued by banks. Any amount exceeding this limit shall be paid by means of account payee cheque/ demand draft/ payment order, etc., or credited directly to the beneficiary’s bank account. However, in exceptional circumstances, where the beneficiary is a foreign tourist, higher amounts may be disbursed in cash.





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