Banking Awareness Quiz – Set 94

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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. Which of the following is an apex financial institution for housing?
   A. AIFI
   B. NHB
   C. DFI
   D. Both (A) and (B)
   E. None of the Above
   
   Answer & Explanation

   B. NHB
   Explanation:
   NHB is an apex financial institution for housing. NHB has been established with an objective to operate as a principal agency to promote housing finance institutions both at local and regional levels.
   
   
2. NHB is wholly owned by ______
   A. GOI
   B. RBI
   C. SEBI
   D. NABARD
   E. None of the Above
   
   Answer & Explanation

   B. RBI
   Explanation:
   NHB is wholly owned by Reserve Bank of India.
   
   
3. The Headquarters of NHB located in ________
   A. Chennai
   B. Mumbai
   C. New Delhi
   D. Gurugram
   E. None of the Above
   
   Answer & Explanation

   C. New Delhi
   Explanation:
   Headquarters of NHB located in New Delhi.
   
   
4. National Housing Bank(NHB) was set up under ___________
   A. National Housing Bank Act, 1987
   B. National Housing Bank Act, 1977
   C. National Housing Bank Act, 1967
   D. National Housing Bank Act, 1957
   E. None of the Above
   
   Answer & Explanation

   A. National Housing Bank Act, 1987
   Explanation:
   NHB was set up on 9 July 1988 under the National Housing Bank Act, 1987.
   
   
5. Which of the following contributed the entire paid-up capital in National Housing Bank(NHB)?
   A. GOI
   B. RBI
   C. SEBI
   D. NABARD
   E. None of the Above
   
   Answer & Explanation

   B. RBI
   Explanation:
   RBI contributed the entire paid-up capital in National Housing Bank(NHB).
   
   
6. An HFC is required to have Minimum net owned fund of ______
   A. Rs. 100 lakhs
   B. Rs. 200 lakhs
   C. Rs. 500 lakhs
   D. Rs. 1000 lakhs
   E. None of the Above
   
   Answer & Explanation

   D. Rs. 1000 lakhs
   Explanation:
   For commencing the housing finance business, an HFC is required to have the following in addition to the requirements under the Companies Act, 1956:
   ♦ Certificate of registration from NHB
   ♦ Minimum net owned fund of Rs. 1000 lakhs
   
   
7. HFCs can accept public deposits for a period of __________
   A. 2 to 5 years
   B. 1 to 5 years
   C. 2 to 7 years
   D. 1 to 7 years
   E. All of the Above
   
   Answer & Explanation

   D. 1 to 7 years
   Explanation:
   In terms of the Housing Finance Companies (NHB) Directions, 2001, HFCs can accept public deposits for periods of one year and above and upto seven years only.
   
   
8. What is/are the credit rating agencies approved for the acceptance of public deposits by an HFC?
   A. The Credit Rating Information Services of India Ltd. (CRISIL)
   B. ICRA Ltd.
   C. Credit Analysis and Research Limited (CARE)
   D. FITCH Ratings India Pvt. Ltd.
   E. All of the Above
   
   Answer & Explanation

   E. All of the Above
   Explanation:
   The HFC having credit rating can accept more deposits as compared to an HFC without such rating.
   The following credit rating agencies have been approved for the above purpose
   ♦ The Credit Rating Information Services of India Ltd. (CRISIL)
   ♦ ICRA Ltd.
   ♦ Credit Analysis and Research Limited (CARE)
   ♦ FITCH Ratings India Pvt. Ltd.
   
   
9. What is difference between banks & HFCs?
   A. HFCs cannot accept demand deposits
   B. It cannot issue cheques drawn on itself
   C. deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of HFCs
   D. All of the Above
   E. None of the Above
   
   Answer & Explanation

   D. All of the Above
   Explanation:
   HFCs are doing functions similar to banks as banks also provides housing loans.
   However, there are a few differences as given below:
   ♦ HFCs cannot accept demand deposits
   ♦ HFCs do not form part of the payment and settlement system and cannot issue cheques drawn on itself;
   ♦ Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation(DICGC) is not available to depositors of HFCs, unlike in case of banks.
   
   
10. In terms of _________, HFCs cannot conduct business of housing finance without obtaining a Certificate of Registration (CoR) from NHB
    A. Section 29A of National Housing Bank 1987
    B. Section 28A of National Housing Bank 1987
    C. Section 27A of National Housing Bank 1987
    D. Section 26A of National Housing Bank 1987
    E. None of the Above
    
    Answer & Explanation

    A. Section 29A of National Housing Bank 1987
    Explanation:
    In terms of section 29A of the National Housing Bank, 1987, HFCs cannot conduct business of housing finance without obtaining a Certificate of Registration (CoR) from NHB. Conduct of business without obtaining certificate of registration is an offence punishable under the provisions of the National Housing Bank Act, 1987. NHB can also file application for winding up of such HFCs, under section 33B of the said Act.