Financial Regulators in India MCQ Quiz in मल्याळम - Objective Question with Answer for Financial Regulators in India - സൗജന്യ PDF ഡൗൺലോഡ് ചെയ്യുക

The correct answer is Agriculture.

• In India, commercial banks have the highest share in the disbursement of credit to Agriculture.​

​Important Points 

• Priority Sector Lending: The government of India and the Reserve Bank of India consider some sectors as important as they need development to fulfill the basic needs of the country.
• Categories under priority sector: Agriculture.
  • Micro, Small and Medium Enterprises
  • Export Credit
  • Education
  • Housing
  • Social infrastructure
  • Renewable Energy
  • Others.

The correct answer is Citibank.

Key Points

• Citibank launched Voice Biometrics Authentication for Phone Banking customers that would allow clients to use their voiceprints for authentication.
• The new technology allows clients to use their voiceprints for authentication rather than having to remember multiple PINs or respond to questions used for verifying their identities.
• The voice biometrics authentication capability uses a voiceprint, similar to a fingerprint, which is unique for each person.
• The new authentication solution is fast, secure, and convenient as verification is completed automatically within 15 seconds while clients speak to the (bank) official when they call CitiPhone Banking, the 24-hour hotline service.
• Earlier, on average, it took 45 seconds for a customer to verify his/her details.
• When clients call CitiPhone Banking, they can choose to enroll in this service by having their voice recorded to generate their unique voiceprint.
• Each voiceprint will be uniquely tagged and cannot be emulated or reused once stored. 

Additional Information

• Citibank:
  • Founded: 16 June 1812, New York, United States
  • Founder: Samuel Osgood
  • It started its operation in India in 1902.

Pension Fund Regulatory and Development Authority (PFRDA) is authorized by Ministry of Finance, Department of Financial Services.

The correct answer is Sudarshan Sen.

Key Points

• The Reserve Bank of India (RBI) has constituted a six-member panel to carry out a comprehensive review of the working of Asset Reconstruction Companies (ARCs) in the financial sector ecosystem.
• The panel will be headed by former Executive Director of RBI, Sudarshan Sen.
• Other members of the panel include:
  • Vishakha Mulye – Executive Director, ICICI Bank
  • P N Prasad – former Dy. Managing Director, SBI
  • Rohit Prasad – Professor of Economics, MDI, Gurgaon
  • Abizer Diwanji – Partner, Ernst & Young
  • R Anand – Chartered Accountant

Additional Information

About RBI:

• RBI 25th Governor: Shaktikanta Das
• Headquarters: Mumbai
• Founded: 1 April 1935, Kolkata.

IMPS (Immediate Payment Service):

• It is an inter-bank electronic funds transfer service where transactions can be initiated online through net banking or mobile phones.
• The service is available 24x7 throughout the year including bank holidays.
• It is managed by the National Payments Corporation of India (NPCI) through its existing NFS(National Financial Switch).
• IMPS is open for use 24 hours a day, 7 days a week, including Sundays and bank holidays.
• So users need not wait for the banking hour of online transfer and if the amount is to be transferred urgently, IMPS is the best mode.
• Some banks charge a nominal fee for using IMPS depending on the amount to be transferred.
• IMPS is instant and in real-time and unlike RTGS and NEFT, your order is processed as soon as you initiate it, rather than being bundled with other transactions.

Objectives of IMPS

1. Immediate payment service facilitates bank customers to use their phones for accessing their bank accounts and to carry out an online money transfer.
2. It makes payment simpler just with the mobile number and MMID (mobile money identifier) of the Receiver.
3. It also serves the goal of the Reserve Bank of India (RBI) in interbank electronic fund transfer services.
4. Immediate payment service aims to build the foundation for a full range of cell phone-based Banking services.
5. It is beneficial where instant payments are a matter of concern.

Thus, option 1 is the correct answer.

The correct answer is d) → b) → c) → a).

The year of the establishment of the following institutions in ascending order are as follows:

1.  Unit Trust Of India - 1963
2. Export-Import Bank of India - 1 January 1982
3. NABARD - 12 July 1982
4. National Housing Bank - 9 July 1988

Therefore, the ascending order for their year of establishment are d) → b) → c) → a)

The correct answer is RBI​.

Important Points In India, universal banks that function as investment banks are primarily regulated by the Reserve Bank of India (RBI). 

Universal Banks - 

• Universal banks are financial institutions that offer a wide range of financial services, including commercial banking, investment banking, and other financial activities.
• In India, these banks are regulated by the RBI.

Role of RBI - 

• The RBI is the central bank of India, and one of its primary functions is to regulate and supervise the banking sector.
• It formulates and implements monetary policies, issues and regulates the currency, and oversees the stability and functioning of the financial system.

Regulation of Universal Banks - 

• Universal banks that operate in India, which provide both commercial and investment banking services, are subject to the regulatory oversight of the RBI.
• This includes monitoring their capital adequacy, liquidity, risk management practices, and compliance with various regulations.

Additional Information SEBI's Role - 

• SEBI (Securities and Exchange Board of India) is the regulatory authority for the securities market in India.
• It regulates activities related to securities, including stocks and bonds.
• While SEBI plays a critical role in regulating securities markets, it primarily oversees activities related to capital markets and is not the primary regulator for universal banks.

Ministry of Finance and IRDA - 

• The Ministry of Finance is a governmental department responsible for formulating and implementing financial policies and decisions.
• It sets the overall financial direction for the country, but it doesn't directly regulate individual banks.
• IRDA (Insurance Regulatory and Development Authority) is responsible for regulating the insurance sector and is not directly involved in regulating universal banks.

The correct answer is 'A, B, E, D, C'

Key Points

• Mutual Fund Regulations (A):
  • SEBI (Securities and Exchange Board of India) introduced the SEBI (Mutual Funds) Regulations in 1996 to regulate all mutual funds except those which are created and managed by the Reserve Bank of India or a banking company.
  • These regulations were the earliest among the listed legislations and were aimed at safeguarding investor interests in mutual funds by ensuring transparency and accountability.
• Credit Rating Agencies Regulations (B):
  • The SEBI (Credit Rating Agencies) Regulations were enacted in 1999 to regulate the functioning of credit rating agencies in India.
  • This regulation provided a framework to ensure the quality and integrity of the credit rating process, and to protect the interests of investors who rely on these ratings.
• Sweat Equity Regulations (E):
  • The SEBI (Issue of Sweat Equity) Regulations were implemented in 2002 to regulate the issue of sweat equity shares by companies to their employees and directors.
  • This regulation helped in recognizing and rewarding valuable contributions by employees who contributed their know-how or intellectual property to the company.
• SEBI Intermediaries Regulations (D):
  • The SEBI (Intermediaries) Regulations came into effect in 2008 to provide a comprehensive set of guidelines for entities involved in the securities market.
  • These regulations cover various market intermediaries such as brokers, sub-brokers, portfolio managers, and others, ensuring their proper functioning and protecting investor interests.
• Credit Rating Regulations (C):
  • The SEBI (Issue and Listing of Debt Securities) Regulations, known as Credit Rating Regulations, were enacted in 2008 to provide a framework for the issuance and listing of debt securities.
  • These regulations ensure that the process of raising debt capital through the securities market is transparent and fair for all stakeholders involved.

The correct answer is NPCI.

Key Points

•  Immediate Payment Service (IMPS) public launch happened on 22nd November 2010.
  • Provided by National Payments Corporation of India (NPCI)
  • This was an initiative to build the necessary banking infrastructure required to propel India towards a less-cash economy.
  • Currently, on IMPS, 590 members are live which includes banks & PPIs.

Additional Information

• NPCI enabling digital payments and settlement systems in India is an initiative of RBI and IBA.
  • NPCI recognizes the need for tech-driven innovations in the retail payments system to drive operational efficiencies among a larger population.
  • NPCI was incorporated in 2008
  • Currently, 56 banks are share-holders of NPCI
  • Dilip Asbe is the MD & CEO of NPCI.
• About RBI: The Reserve Bank of India was established on 1st April 1935.
  • Was established on the recommendation of the Hilton Young Commission.
  • The RBI was nationalized with effect from 1st January 1949.
  • Four local boards of RBI are located in four regions of the country Mumbai, Delhi, Chennai, and Kolkata.
  • The central office was initially established in Calcutta but was permanently moved in 1937 to Mumbai.
  • RBI is headed by the Governor, current Governor of RBI is Shri Shaktikanta Das (25th Governor)
  • The first Indian Governor of RBI was CD Deshmukh.
  • Functions of RBI:
  1. ​Issue currency,
  2. Control credit,
  3. Acts as National Clearinghouse.
  • Also known as Banker's bank, Banker to the government.
• State bank of India: Headquarter: Mumbai
  • Chairperson: Dinesh Kumar Khara (as of Dec-2020)

The correct answer is Seven

Key Points

• Mobile Money Identifier (MMID) is a seven-digit number, issued by banks for effecting financial transactions through the user’s mobile phone.
• The user’s mobile number MMID is uniquely linked with his bank account number and is one of the key inputs to facilitate fund transfer.
• MMID falls under the umbrella of mobile banking.

• There are 3 ways of generating an MMID:

  1. Mobile Banking
  2. Net Banking
  3. Phone Banking
• In present times, many payment methods have become quite popular. NEFT and RTGS have been the talk of online payment transactions.
  • ​However, they have their share of limitations, which keeps a bank user from availing those services during certain days and hours.
  • For this reason, the concept of IMPS was introduced for conducting online digital transactions, The MMID and the mobile number would enable conducting such transactions through IMPS but without sharing the bank account number of an account holder.
  • Use of MMID code and pin:  An MMID code is used to receive a payment of money through mobile banking whereas an MPIN is used to make a payment to another bank account holder using mobile banking.
  • The benefit of MMID: The major benefit of the MMID Code lies in the fact that it can be used easily by any bank account holder to transfer funds instantly.

Additional Information

•  Mobile Banking: It refers to the use of a mobile device to carry out financial transactions anywhere.
  • ​This service is provided by majorly all financial institutions, especially banks.
  • Mobile banking enables customers to carry out various transactions, which may vary depending upon institutions.
  • Mobile banking services can be categorized into, account information, transaction, investment, support service, content, and news.
  • It can be done either through the internet or SMS.
  • In 2002 mobile banking was started in India by a way through SMS.