RBI Grade B 2019 Booster Series - Part 1

Q:1.

Which of the following has become the first bank to link its interest rates on savings account to the repo rate of Reserve Bank of India?

Union bank of India
IDBI Bank
State Bank of India
Axis Bank
HDFC Bank

Solution: State Bank of India has become the first bank in India to link its interest rates on savings
account to the repo rate of Reserve Bank of India.

Q:2.

RBI will conduct three-year buy-sell swap for the rupee through an auction process to infuse the liquidity in the market? What is the Total Outlay of this Swap?

$ 2 billion
$ 3 billion
$ 4 billion
$ 5 billion
None of the above

Solution: In a move to infuse the liquidity in the market, RBI will conduct three-year buy-sell swap for the rupee through an auction process. RBI will buy $ 5 billion on 26th March for a period of three years and reserve it through sales at pre-determined rates via fixed auction.

Q: 3.

Market regulator SEBI withdrew with 20% limit on Investment by ______________ in corporate bonds of an entity.

Angel Investors
Foreign Portfolio Investors
Venture Capitalists
Peer-to-peer Landers
None of the above

Solution: SEBI withdrew with 20% limit on Investment by Foreign Portfolio Investors in corporate bonds of an entity. Earlier it was mandated that no FPIs shall have an exposure of more than 20% of its corporate bond portfolio to a single corporate.

Q: 4.

Which of the following Statement is/are true considering the relaxed norms for White Label ATMs by RBI?

WLATM operator cannot sources cash from Scheduled banks.
The operators are allowed to issue co-branded ATMs Cards.
The operators can provide bill payments services which is a subject to certification from RBI.
The operator cannot display the advertisements of non-banking products in the ATMs Premises.
All are Incorrect

Solution: According to the relaxed norms for White Label ATMs, the operators can source cash from RBI, Currency chest and any scheduled Bank. They are allowed to issue co-branded ATMs Cards for "on-us" transactions benefits to the customers. The bill payment services are subject to certification from NPCI and Also the operators can display the non-banking product advertisements in the ATMs Premises.

Q: 5:

The Reserve Bank of India has decided to make Legal Entity Identifier (LEI) code mandatory for all market participants regulated by the central bank. How many Digits does this code have?

Solution: A Legal Entity Identifier (LEI) code is a 20-character Identifier that identified the distinct legal entities that engage in Financial transactions.