Banking - General Knowledge Questions

Correct Answer :   HDFC Bank

Merger-bound HDFC Bank has partnered with Manipal Global Academy of BFSI to launch its Future Banker 2.0 programme to groom young graduates into banking professionals within a year.

* The nationwide recruitment initiative seeks to establish a talent pipeline for the bank's retail banking division to man its expanded network post-Merger.

* The one-year professional diploma, offered in collaboration with Manipal Global Academy of BFSI, incorporates classroom sessions, guest lectures, group discussions, role plays, and practical fieldwork.

* The programme includes eight months of paid internship and on-the-job training at HDFC Bank branches nationwide.

* The internship will facilitate hands-on exposure to banking products, compliance frameworks, and day-to-day operations.

* Upon successfully completing the course, students are granted a postgraduate diploma in sales & relationship banking from Manipal Academy of BFSI and an assured job placement as a personal banker at the Deputy Manager level within HDFC Bank.

* The annual salary for these positions can reach up to Rs.5.59 lakh.

* Vinay Razdan, Chief Human Resources Officer at HDFC Bank said that new hires will get to work with the largest private bank and students will gain practical experience on the job while receiving competitive compensation, allowing them to 'earn while they learn.'

* "HDFC Bank is committed to mentoring new recruits and nurturing them into responsible bankers of the future. We value competence and performance, providing equal opportunities to all candidates," he said .

* Robin Bhowmik, Chief Business Officer at Manipal Global, said the programme provides equal opportunity. This special recruitment programme aims to equip young graduates with the necessary skills and knowledge..

Source : India Times

Correct Answer :   Axis Bank

Axis Bank has launched (23 May 2023) ‘Sarathi’ a digital onboarding journey to enable Electronic Data Capture or Point of Sale (POS) for merchants.

* This platform provides a seamless and hassle-free experience for merchants.

The solution enables merchants to complete the onboarding process in just four simple steps which includes :

* Realtime database checks for faster application processing
* Live video verification to authenticate merchant information
* Eliminates the field verification process which helps in instant decision-making
* Instant installation of POS

Source : Axisbank

Correct Answer :   $750 Million

The Reserve Bank of India (RBI) bought $750 million on a net basis in the spot foreign exchange market in March, data released on Monday (22nd May 2023) as part of the central bank's monthly bulletin showed.

* The RBI said it purchased $6.91 billion and sold $6.16 billion. In February, the central bank had bought $254 million on a net basis in the spot market.

* The Indian rupee appreciated by 0.6% against the dollar in March. The unit traded in a range of 81.6150 to 82.80.

* The RBI's net outstanding forward purchase stood at $23.6 billion as of end-March, compared with a net purchase of $20.47 billion at the end of the previous month, data released on Monday showed.

* The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The currency was at 82.8275 to the dollar on Monday (22nd May 2023)..

Source : India Times

Correct Answer :   Yes Bank

* As per the announcement (23rd May 2023) of Red Hat, Inc., YES BANK has adopted Azure Red Hat OpenShift to transform its next-generation mobile banking applications for an efficient mobile banking experience for its customers.

* It will enable YES BANK to improve customer experience and provide innovative banking solutions.

* It will have the agility and flexibility to increase the demand and also support creating a seamless customer experience across multiple banking solutions..

Source : ANI

Correct Answer :   Rs 87,416 Crore

The Reserve Bank of India (RBI) has approved the transfer of Rs 87,416 crore surplus to the government for the financial year 2022-23.

* This amount is nearly three times higher than the previous year’s transfer of Rs 30,307 crore. The surge in surplus is attributed to increased income from the sale of foreign exchange reserves.

* Despite facing challenges such as rising yields on US treasuries, the RBI’s surplus transfer is expected to provide a significant boost to the government’s revenue.

* Economists have pointed out that the major driver behind the bumper surplus transfer is the gains from record gross foreign exchange sales in the fiscal year 2022-23.

* The RBI’s sales of foreign exchange reserves, estimated to be around $206 million until February 2023, significantly contributed to the increased surplus.

* However, the profits were partially offset by higher provisioning on mark-to-market losses on foreign securities. Additionally, the higher contingency buffer of 6 percent, compared to 5.5 percent in the past, also impacted the profit margin.

Offsetting Revenue Losses and Budget Expectations : The surplus transfer of Rs 87,416 crore from the RBI to the central government is expected to bring in additional revenue of around 0.2 percent of GDP. This infusion of funds could help partially offset possible revenue losses due to lower tax revenues and divestment. The surplus amount aligns with the expectations set by the Union Budget, which estimated a surplus of Rs 48,000 crore from the central bank, public sector banks, and financial institutions for the current year.

Impact of Global and Domestic Economic Situation : During its meeting, the RBI’s board reviewed the global and domestic economic situation, including the influence of current geopolitical developments. The central bank acknowledged the associated challenges and deliberated on its performance during the accounting year 2022-23. The approval of the Annual Report and accounts of the RBI for this period reflects the board’s confidence in the bank’s operations. Furthermore, the decision to maintain the contingency risk buffer at 6 percent demonstrates the RBI’s commitment to prudential financial management.

Correct Answer :   19 May 2023

The Reserve Bank of India (RBI) on Friday (19th May 2023) announced the withdrawal of ₹2,000 currency notes from circulation, but said that they will continue to be legal tender.

* People possessing these notes can deposit them in their bank accounts or get them exchanged from 23rd May 2023 to 30 September 2023, the central bank said in a statement.

* In order to ensure operational convenience and to avoid disruption of regular activities of bank branches, exchange of ₹2000 banknotes into banknotes of other denominations can be made upto a limit of ₹20,000/- at a time at any bank starting from May 23, 2023.

* The RBI has also advised banks to stop issuing ₹2,000 denomination banknotes with immediate effect. About 89% of the ₹2,000 denomination banknotes were issued prior to March 2017 and are at the end of their estimated life-span of 4-5 years.

* The total value of these banknotes in circulation has declined from ₹6.73 lakh crore at its peak as on March 31, 2018 (37.3% of notes in circulation) to ₹3.62 lakh crore constituting only 10.8% of notes in circulation as on March 31, 2023.

* The facility for exchange of ₹2,000 banknotes upto the limit of ₹20,000/- at a time shall also be provided at the 19 Regional Offices (ROs) of RBI having Issue Departments from May 23, 2023..

Source : Business Insider

Correct Answer :   9.99%

The Reserve Bank of India has allowed SBI Funds Management (SBIMFL) to acquire up to 9.99% of the paid-up share capital or voting rights of HDFC Bank, the bank said in a notification to exchanges on May 17, 2023.

* The approval has been granted with reference to the application made by SBIFML to RBI, the HDFC Bank said, adding that the approval granted by RBI is subject to certain conditions.

* SBIFML has been advised by RBI to acquire the aforesaid major shareholding in the bank within a period of six months i.e. by November 15, 2023, the bank said.

* Further, SBIFML must ensure that the aggregate holding in HDFC Bank remains below 10% of the paid-up share capital or voting rights of the Bank at all times, the RBI has said.

* HDFC Bank and HDFC is in the process of getting merged by July this year, Chief Financial Officer Srinivasan Vaidyanathan said after announcing the bank’s January-March 2023 quarterly results, in a post-results analyst call.

* HDFC Ltd had received approval letters including from Reserve Bank of India, Securities and Exchange Board of India (SEBI) Pension Fund Regulatory and Development Authority (PFRDA) and Competition Commission of India as well as from India's stock exchanges BSE and the National Stock Exchange.

* Further, The RBI has allowed HDFC Bank or HDFC Limited to increase the shareholding in HDFC Life and HDFC ERGO to more than 50 percent.

* The bank said the apex bank has allowed HDFC Bank or HDFC Ltd to increase the shareholding to more than 50% in HDFC Life Insurance and HDFC ERGO General Insurance prior to the effective date of the merger..

Source : Money Control

Correct Answer :   Bank of Baroda

Bank of Baroda announced the launch of the Electronic Bank Guarantee (BG) system in partnership with National E-Governance Services Limited (NeSL), the government-backed Information Utility appointed by the Insolvency and Bankruptcy Board of India.

The new facility will enable the public sector bank to issue inland bank guarantees electronically on its digital platform BarodaINSTA.

Being entirely digital, the system will reduce the turnaround time in the process and provide a safer and more accessible medium, claims the Bank. The beneficiary can view the final digital BG on the NeSL portal immediately upon issuance. Such an e-BG eliminates the need for a separate authentication from the BG issuing Bank.

The rationale behind the launch is the faster turnaround time in offering an electronic bank guarantee versus the conventional paper-based process of issuing inland Bank Guarantees. The bank claims that e-BGs will bring down the average turnaround time of a conventional BG from 2-3 days to just a few minutes.

Moreover, e-BGs are stored in a central repository, unlike inland BGs, which are accessible to all stakeholders making it easy to authenticate and verify documents.

“Electronic Bank Guarantee is a transformational reform as we endeavor to make banking simpler, more secure, and easily accessible for our customers. Individual contractors, SMEs, and large corporates are major applicants for bank guarantees and the move to e-BGs – a quick, seamless, transparent, and completely secure process – will benefit them all,” said the bank’s General Manager and head of Forex and Fee income  T. N. Suresh...

Source : Financialexpress

Correct Answer :   RBI

The Reserve Bank of India (RBI) has joined forces with the Global Financial Innovation Network (GFIN) to participate in the Greenwashing TechSprint.

The event aims to address concerns surrounding exaggerated, misleading, or unsubstantiated claims related to environmental, social, and governance (ESG) credentials. The TechSprint will bring together 13 international regulators, firms, and innovators to develop a tool that could help regulators and the market more effectively tackle the risks of greenwashing in financial services.

RBI’s participation in the TechSprint : The RBI will be among the 13 international regulators taking part in GFIN’s Greenwashing TechSprint. The central bank has invited Indian firms to participate in the event and has opened the application window for all India-based firms and innovators to apply. The window will close on May 21, 2023. RBI will participate in a virtual TechSprint hosted on the Financial Conduct Authority’s (FCA) Digital Sandbox.

Objective of the TechSprint : The objective of the Greenwashing TechSprint is to develop a tool that can help regulators and the market more effectively tackle or mitigate the risks of greenwashing in financial services. Firms will get the opportunity to work with regulatory experts, a variety of stakeholders, and professionals from across the globe to develop the tool. The TechSprint will launch on June 5, 2023, and will run for three months, ending with a showcase day in September 2023.

Support for firms interested in participating : The GFIN will provide an information pack for firms interested in participating in the event to support the application process. Firms that are successful in their applications will proceed through to on-boarding, which will take place on June 1 and 2. This will provide firms with training on the Digital Sandbox and an in-depth overview of the TechSprint process.

Addressing concerns of greenwashing : The TechSprint aims to address concerns surrounding greenwashing, which is the practice of making exaggerated, misleading, or unsubstantiated claims about the environmental benefits of a product, service, or investment opportunity. Greenwashing can mislead investors and consumers and harm the overall goal of promoting sustainable finance. The development of a tool to tackle greenwashing risks in financial services is, therefore, an important step towards promoting transparency and credibility in ESG investing...

Source : Economic Times

Correct Answer :   YES Bank

Goldi Solar, India’s most quality-conscious solar brand, has partnered with YES BANK to finance solar projects for its Micro, Small and Medium Enterprises (MSME) customers, through YES BANK’s YES KIRAN programme.

* Under this programme, the Bank will offer financial assistance to MSME manufacturers, who wish to install solar panels at their premises.

* The platform will process all the loan applications for solar projects sourced from across the country for installation by business entities such as commercial institutions, industries, resorts, hotels, manufacturing units, and warehouses that can utilize this secured financing instrument to switch to solar power.

* Also, consumers can receive technical assistance at their doorstep and get loan approvals faster.

* Speaking on the partnership, Capt. Ishver Dholakiya, Founder & Managing Director of Goldi Solar, said, “Over the past few years, we’ve seen a significant behaviour shift in the Indian MSMEs towards green energy solutions. We anticipate that more small businesses will adopt solar power, increasing their competitiveness in domestic and international markets and contributing to India’s energy security and the decarbonization of power. With our partnership with Yes Bank, we’re excited to offer a financing solution to help MSMEs save on electricity costs and improve access to green energy.”..

Source : Solar Quarter