What is the minimum Net Owned Fund (NOF) requirement for an NBFC to commence business as a loan company or investment company, as per recent RBI guidelines?
A βΉ1 crore
B βΉ2 crore
C βΉ5 crore
D βΉ10 crore
Answer: B
As per recent RBI guidelines, the minimum Net Owned Fund (NOF) requirement for an NBFC to commence business as a loan company or investment company is βΉ2 crore.
2.
Under the Scale-Based Regulation (SBR) framework, which category of NBFCs faces the most stringent regulations, similar to banks?
A NBFC-Base Layer (NBFC-BL)
B NBFC-Middle Layer (NBFC-ML)
C NBFC-Upper Layer (NBFC-UL)
D NBFC-Top Layer (NBFC-TL)
Answer: C
The SBR framework categorizes NBFCs into four layers: Base Layer, Middle Layer, Upper Layer, and Top Layer. NBFC-UL, identified as systemically significant, are subject to enhanced regulatory requirements, akin to banks.
3.
What is the primary reason cited by RBI for tightening norms for NBFCs?
A To encourage more NBFCs to enter the market.
B To align NBFC regulations with those of banks and mitigate systemic risks.
C To reduce competition in the financial sector.
D To promote foreign investment in NBFCs.
Answer: B
The RBI has been progressively tightening norms for NBFCs, especially larger ones, to address potential systemic risks and bring their regulatory framework closer to that of banks, under the 'Scale-Based Regulation' (SBR) framework.
4.
The RBI has been actively promoting the use of which real-time payment system for instant inter-bank fund transfers?
A Cheque Clearing System
B Demand Drafts
C Unified Payments Interface (UPI)
D Magnetic Ink Character Recognition (MICR)
Answer: C
UPI (Unified Payments Interface) is a real-time payment system developed by NPCI, allowing instant fund transfers between bank accounts using a smartphone, which the RBI actively promotes for digital payments.
5.
What is the main goal of the RBI's National Strategy for Financial Inclusion (NSFI) 2019-2024?
A To increase the number of bank branches in metropolitan areas.
B To provide access to formal financial services to all citizens.
C To promote cashless transactions only.
D To regulate cryptocurrency.
Answer: B
The NSFI aims to provide access to formal financial services, including banking, insurance, pension, and credit, to all citizens in a timely and affordable manner.
6.
Which initiative by RBI aims to promote digital payments in rural and semi-urban areas by providing incentives to banks and payment system operators?
A National Electronic Funds Transfer (NEFT)
B Real-Time Gross Settlement (RTGS)
C Payment Infrastructure Development Fund (PIDF)
D Unified Payments Interface (UPI)
Answer: C
The Payment Infrastructure Development Fund (PIDF) scheme was launched by the RBI to subsidize the deployment of Point of Sale (PoS) infrastructure (physical and digital modes) in tier-3 to tier-6 centres and North Eastern States.
7.
What is the primary objective behind RBI enhancing the customer grievance redressal mechanism?
A To reduce the number of customer complaints.
B To provide a single point of reference for customers to file complaints against regulated entities.
C To increase the operational efficiency of banks.
D To promote digital banking.
Answer: B
The primary objective is to simplify and streamline the grievance redressal process for customers by providing a 'One Nation One Ombudsman' approach, making it easier for them to file complaints.
8.
Which of the following entities are covered under the RBI's Integrated Ombudsman Scheme, 2021?
A Only Commercial Banks
B Commercial Banks, NBFCs, and Payment System Participants
C Only Public Sector Banks
D Only Cooperative Banks
Answer: B
The Integrated Ombudsman Scheme, 2021, covers commercial banks, regional rural banks, scheduled primary co-operative banks, non-banking financial companies (NBFCs) with asset size of βΉ50 crore and above, and all payment system participants.
9.
What is the integrated grievance redressal mechanism launched by RBI for customers?
A Banking Ombudsman Scheme
B Integrated Ombudsman Scheme, 2021
C Consumer Protection Act
D RBI Grievance Cell
Answer: B
The RBI launched the Integrated Ombudsman Scheme, 2021, integrating the existing three ombudsman schemes (Banking Ombudsman Scheme, Ombudsman Scheme for NBFCs, and Ombudsman Scheme for Digital Transactions) into a single scheme.
