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ANSWERS
January 27, 2014 at 12:11pm
4. NBFCs are doing functions similar to banks. What is difference between banks & NBFCs ?
NBFCs lend and make investments and hence their activities are akin to that of banks; however there
are a few differences as given below:
NBFC cannot accept demand deposits;
NBFCs 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 is not
available to depositors of NBFCs, unlike in case of banks.
6. What is BSBDA?
Under the guidelines issued on August 10, 2012 by RBI: Any individual, including poor or those from
weaker section of the society, can open zero balance account in any bank. BSBDA guidelines are
applicable to "all scheduled commercial banks in India, including foreign banks having branches in
India".
All the accounts opened earlier as 'no-frills' account should be renamed as BSBDA. Banks are
required to convert the existing 'no-frills' accounts into 'Basic Savings Bank Deposit Accounts'.
The 'Basic Savings Bank Deposit Account' should be considered as a normal banking service
available to all customers, through branches .
The aim of introducing 'Basic Savings Bank Deposit Account' is very much part of the efforts of RBI
for furthering Financial Inclusion objectives.
8. What is KYC?
The Reserve Bank of India (RBI) has advised banks to follow KYC guidelines, wherein certain
personal information of the account-opening prospect or the customer is obtained. The objective of
doing so is to enable the Bank to have positive identification of its customers. This is also in the
interest of customers to safeguard their hard earned money.
The KYC guidelines of RBI mandate banks to collect three proofs from their customers. They are-
1.Photograph
2. Proof of identity
3. Proof of address
19. What is the difference between Nationalized bank and Private Bank ?
A Nationalized bank is one that is owned by the government of the country. Since the people decide
who the government is, they are also referred to as public sector banks. The government is
responsible for the money deposited into the accounts of these banks. Where as a private sector
bank is one that is owned by an independent individual or a company that is controlled by a few
individuals. In short, the bank is owned by someone else and they run the bank. The person
owning/running the bank is responsible for the money deposited into the accounts of these banks.
42. Which are the banks covered under the Banking Ombudsman Scheme, 2006?
All Scheduled Commercial Banks, Regional Rural Banks and Scheduled Primary Co-operative Banks
are covered under the Scheme.
The World Bank is like a cooperative, made up of 189 member countries. These member countries, or
shareholders, are represented by a Board of Governors, who are the ultimate policymakers at the World Bank.
Generally, the governors are member countries' ministers of finance or ministers of development. They meet once
a year at the Annual Meetings of the Boards of Governors of the World Bank Group and the International
Monetary Fund.
The governors delegate specific duties to 25 Executive Directors, who work on-site at the Bank. The five largest
shareholders appoint an executive director, while other member countries are represented by elected executive
directors.
World Bank Group President Jim Yong Kim chairs meetings of the Boards of Directors and is responsible for
overall management of the Bank. The President is selected by the Board of Executive Directors for a five-year,
renewable term.
The Executive Directors make up the Boards of Directors of the World Bank. They normally meet at least twice a
week to oversee the Bank's business, including approval of loans and guarantees, new policies, the administrative
budget, country assistance strategies and borrowing and financial decisions.
The World Bank operates day-to-day under the leadership and direction of the president, management and senior
staff, and the vice presidents in charge of Global Practices, Cross-Cutting Solutions Areas, regions, and
functions. Established in 1944, the World Bank Group is headquartered in Washington, DC, USA. Tiny South
Pacific island nation Nauru has become the 189th member of the International Monetary Fund and the World
Bank.
1. World Bank allowed India to construct hydroelectric power facilities on tributaries of the Jhelum and Chenab
rivers with certain restrictions under the 1960 Indus Waters Treaty (IWT).
2. An agreement for IBRD Credit of USD 35 Million from World Bank for Assam State Public Financial
Institutional Reforms Project was signed in New Delhi.
3. The World Bank has cleared a USD 250-million loan for making Indian youth more employable through re-
skilling, in a move that is seen to aid the Skill India Mission.
4. According to India Development Report released by World Bank, India had one of the lowest female
participation in the workforce, ranking 120th among 131 countries.
5. State Bank of India and the World Bank announced that they had financed 100 MW of rooftop solar projects
worth Rs400 crore in India.
6. The World Bank has approved financing worth more than 500 million dollars for Afghanistan to support a string
of projects to boost the economy, help improve service delivery in five cities and support Afghan refugees sent
back from Pakistan.
7. World Bank has projected a strong 7.2 per cent growth rate for India this year (2017) against 6.8 per
cent growth in 2016.