Banking and Financial Awareness for SBI, IBPS RRB & NABARD Exam 2021
Banking and Financial Awareness for SBI, IBPS RRB & NABARD Exam 2021

Banking and Financial Awareness for Banking Exams 2021

Current Banking Awareness PDF 2021. Important Banking and Financial Awareness Questions for SBI Clerk Mains, IBPS RRB & NABARD Grade-A Exam. If you are preparing for upcoming SBI Clerk Mains, IBPS PO/Clerk, and IBPS RRB Officer Scale-I and Office Assistant, NABARD Grade-A 2021, you will come across a section on Banking Awareness. Here we are providing you “Banking and Financial Awareness Questions” for upcoming Banking and Insurance Exams based on the latest pattern for your daily practice.

Banking and Financial Awareness Questions will help you learn concepts on important topics in Banking Awareness Section. These Banking and Financial Awareness Questions are also important for other banking exams such as IBPS PO, IBPS Clerk, SBI Clerk, IBPS RRB Officer, IBPS RRB Office Assistant, IBPS SO, SBI SO, NABARD Grade-A, RBI Assistant, LIC and other competitive exams.

Banking and Financial Awareness Questions 2021

1. Which NBFCs has has acquired 54% stake in fintech startup Paymatrix by buying out existing investors?

A. Tata Capitals
B. HDB Finance Services
C. Muthoot Fincorp
D. Bajaj Finance Limited
E. Mahindra & Mahindra Financial Services Limited

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Correct Answer  – C. Muthoot Fincorp

Explanation: Gold loan company Muthoot Fincorp has acquired 54% stake in fintech startup Paymatrix by buying out existing investors. The takeover is as part of its added focus on digital payments segment. Paymatrix was set up in 2016 with a vision to streamline property rent payments and rent collections for tenants and landlords.

2. Which financial Technology company has signed ‘lead generation agreements’ with 12 financial institutions?
A. MobiKwik
B. ETMoney
C. PayPoint India
D. Google Pay
E. PayPal India

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Correct Answer – C. PayPoint India

Explanation: PayPoint India, a technology-enabled distribution network of financial services, signed ‘lead generation agreements’ with 12 financial institutions viz, Punjab National Bank, ICICI Bank, Deutsche Bank, and Non-Banking Finance Companies (NBFCs) such as Bajaj Housing, Piramal Housing, and Hero Fincorp, among others. The aim of the deal is to assist with loans to the underserved using technology, and to generate leads for housing, personal and business loans through the partnership with banks and NBFCs.

Under the agreement, PayPoint India will help the financial institutions to get access to the remote locations where they are unable to reach on their own, and provide capital. As per RBI data, under the loan category of Rs 1-10 lakh, businesses have borrowed only around Rs 94,000 crore (low when compared with the Gross Domestic Product (GDP) of India), hence PayPoint India intends to address the gap.

3. With which intergovernmental bank the Government of India has signed a $484 million loan to improve transport connectivity and facilitate industrial development in the Chennai–Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu?

A. Bank of Japan
B. World Bank
C. New Development Bank
D. Asian Development Bank
E. Asian Infrastructure Investment Bank

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Correct Answer – D. Asian Development Bank

Explanation: The ADB and the GoI signed a $484 million loan to improve transport connectivity and facilitate industrial development in the Chennai–Kanyakumari Industrial Corridor (CKIC) in Tamil Nadu. CKIC is part of India’s East Coast Economic Corridor (ECEC). ADB is the lead partner of the Government of India in developing ECEC. The project will upgrade about 590 km of state highways in the CKIC influence areas that cover 23 of the 32 districts between Chennai and Kanyakumari.

4. According to ‘UNESCO Science Report 2021: The race against time for smarter development’, India’s Gross Domestic Expenditure on Research & Development (GERD) remained at _____.
A. 1.5%
B. 0.5%
C. 0.7%
D. 0.8%
E. 1.2%

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Correct Answer – C. 0.7%

Explanation: The ‘UNESCO Science Report 2021: The race against time for smarter development’ released by United Nations Educational, Scientific and Cultural Organization (UNESCO) states that India’s Investment in Research remains unsatisfactory. India’s Gross Domestic Expenditure on Research & Development (GERD) remained at 0.7% of the GDP for several years. India has one of the lowest GERD/GDP ratios among the BRICS (Brazil, Russia, India, China, South Africa) nations.

5. The Reserve Bank of India proposed to remove interest rate caps for which financial institutions?
A. NBFCs
B. Microfinance Institutions
C. Commercial Banks
D. Regional Rural Banks
E. None of the above

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Correct Answer – B. Microfinance Institutions

Explanation: The Reserve Bank proposed a uniform regulatory framework for the microfinance sector, wherein microfinance institutions (MFIs) can provide collateral-free loans to households at interest rates determined by their boards. Microfinance institutions will get the freedom to set rates and end regulatory cap on interest rates. Microfinance is a form of financial service which provides small loans and other financial services to poor and low-income households. The RBI has proposed a debt-income ratio cap so that the loans should be given in such a way that the payment of interest and repayment of principal for all outstanding loans of a household at any point of time should not cross 50 per cent of the household income.

6. What amount of rice has been allocated by the central government at a subsidized rate of Rs 20 per kg to distilleries for ethanol production for 2020-21?
A. 88,000 tonnes
B. 78,000 tonnes
C. 68,000 tonnes
D. 58,000 tonnes
E. Citi Bank

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Correct Answer – B. 78,000 tonnes

Explanation: The Centre has allocated about 78,000 tonnes of rice from FCI at a subsidised rate of Rs 20 per kg to distilleries for ethanol production for 2020-21. Last year, the Centre had allowed procurement of surplus FCI rice by grain based distilleries at Rs 20 per kg (Ex-FCI Godown) for production of ethanol to be supplied to oil marketing companies under the Ethanol Blending Programme (EBP). As per Food Ministry figures, a quantity of 12,956 metric tonnes of rice has been lifted by six distilleries till April 30, 2021. The government has set a target of blending 20-percent ethanol with petrol by 2025-26. To achieve that target, over 1,000 crore liters of ethanol will be required to blend with the petrol. While half of this will come from the sugar the rest will come grain-based distilleries.

7. Which Small Finance Bank has collaborated with MoEngage to drive digital banking experiences in the unserved and underserved areas of the country?

  1. Capital Small Finance Bank
  2. A U Small Finance Bank
  3. Equitas Small Finance Bank
  4. Janalakshmi Small Finance Bank
  5. Ujjivan Small Finance Bank

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Correct Answer – E. Ujjivan Small Finance Bank

Explanation: Ujjivan Small Finance Bank collaborated with MoEngage to drive digital banking experiences in the unserved and underserved areas of the country. MoEngage is a leading customer engagement platform. This will foster a holistic customer experience across all organic channels, like the website, app, email, text message, social media, and branches to drive business growth. Utilizing MoEngage’s expertise, the SFB will target SMS campaigns to encourage digital repayments.

8. Which bank has introduced a collateral-free offering scheme called ‘Kavach Personal Loan’ to provide financial assistance to its customers to manage the COVID-19 treatment-related expenses?

  1. Bank of Baroda
  2. State Bank of India
  3. Yes Bank
  4. HDFC Bank
  5. ICICI Bank

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Correct Answer – B. State Bank of India

Explanation: SBI has launched ‘Kavach Personal Loan’ to provide financial relief to its customers who are facing economic crises due to covid treatment costs.

  • Loan Amount: Rs 5 lakh loan at an interest rate of 8.5% per annum
  • Tenure: 5 years
  • It is a collateral-free offering that will also provide reimbursement of expenses, which has already been incurred for Covid medical expenses
  • It will be under Covid loan book that has been launched by RBI

9. The Reserve Bank of India (RBI) raised the interchange fee on each financial transaction at ATM from Rs 15 to ____ for financial transactions and from Rs 5 to ______ for non-financial transactions.

  1. Rs 30, Rs 15
  2. Rs 17, Rs 6
  3. Rs 20, Rs 8
  4. Rs 22, Rs 10
  5. Rs 25, Rs 12

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Correct Answer – B. Rs 17, Rs 6

Explanation: The Reserve Bank of India (RBI) raised the interchange fee on each financial transaction at ATM from Rs 15 to Rs 17 for financial transactions and from Rs 5 to Rs 6 for non-financial transactions. Banks will be able to raise ATM transaction charges from August 1, 2021. Customers are still eligible for five free transactions — inclusive of financial and non-financial transactions — every month from their own bank ATMs and three transactions from other bank ATM.

10. Which bank has partnered wealth-tech company Fisdom to offer a comprehensive suite of wealth management products and services to the bank’s 10 crore customers?

  1. Bank of India
  2. Canara Bank
  3. Indian Bank
  4. Punjab National Bank
  5. Union Bank of India

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Correct Answer – C. Indian Bank

Explanation: Indian Bank has partnered wealth-tech company Fisdom to offer a comprehensive suite of wealth management products and services to the bank’s 10 crore customers. The partnership will focus on enabling large-scale facilitation and distribution of wealth products and services through Indian Bank’s network. In phase one of the partnership, Indian Bank’s customers can access and invest in any mutual fund of choice and the National Pension System through the lender’s IndOASIS mobile banking application and its internet banking portal. Indian Bank is the seventh largest public sector bank in India.


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