Saturday, 23 June 2012

United Bank to set up office in Myanmar

United Bank of India has received approval from Central Bank of Myanmar for setting up of a representative office in Yangon. It is the first Indian bank to have presence in the country, said a press statement issued by the bank.
The bank has already received RBI’s approval for opening its representative office in Myanmar, the bank’s Executive Director, Mr Deepak Narang, had said recently. “…Though we will not be able to carry out financial transactions through our representative office, we will get leads which can then be routed into our branches,” he said.

10 EU nations to push for transaction tax

Germany and nine other European Union nations will press ahead with plans to introduce a financial market transaction tax, following failed attempt for an agreement to levy it across the EU.
Finance ministers of the 27-nation EU, who met in Luxembourg on Friday, came to the conclusion that an agreement to impose the tax across the bloc will not be possible in the foreseeable future, German Finance Minister, Mr Wolfgang Schaeuble, told the media after the meeting.
Therefore, 10 nations who are willing to cooperate have decided to move forward by taking the necessary steps on the national level, and to ask the European Commission to draw up legislative proposals to introduce the tax.
Besides Germany, supporters of the tax are Austria, Belgium, France, Portugal, Slovania, Estonia, Greece, Slovakia and Spain. Under the EU rules, the proposed tax can be introduced if at least nine nations support it.
The European Commission estimates that by charging a tax between 0.01 per cent and 0.05 per cent on a broad range of finance market transactions, more than €30 billion could be raised annually.
There have been several unsuccessful attempts in the past to reach an agreement to introduce the tax in the EU as well as at the international level.
Its supporters argue that the tax is necessary to stem excessive speculations in the financial market, to reduce volatility and to involve financial institutions in sharing the costs of future financial bailouts.
The plan is vehemently opposed by Britain and Sweden, which fear that it might lead to an exodus of businesses and financial institutions from Europe and endanger growth.

Micro-finance in a remittance economy

Financial inclusion has become an emerging focus for policymakers around the world, and it is nowhere more relevant than in India. Analysts estimate that up to half the Indian households do not have a bank account. In fact, the Census 2011 found that more than 40 per cent of the population lives two km or more from the nearest bank branch or agent.
For India to facilitate more balanced economic development, universal access to basic financial services is essential.
There are no easy solutions. Strict regulation of banking and other financial services is vital to address money laundering, terrorist financing and fraud.


India’s formal financial services sector is yet to meet the growing needs of a large part of the population. When it comes to domestic remittances, 57 per cent of migrant workers in India use hawala couriers and other informal channels to remit money, according to a recent study.
Analysts estimate that almost 40 per cent of the participants in India’s informal economy — which accounts for half the country’s gross domestic product — resort to chit funds, barter and moneylenders for financing.
It is logical that an informal sector thrives in the absence of convenient, reliable, speedy and regulated financial services. The risk of unabated informal and or illegal financial traction and its risk on national/consumer security and impact on a country’s monetary policy require no debate.
The need for increased access to formal financial services is an important and urgent policy objective not only for India but also for its main trading partners, including its key remittance sending countries.
The World Bank published a pivotal report in June 2010, Inclusive Finance, which provides a standard definition of financial inclusion. The bank said that affordability, availability and convenience, and quality are key features. It also subdivided financial inclusion into four product types: payments, savings, insurance and credit.
When Western Union commenced offering international money transfers in 1993, the company remitted money from 41 countries into India. Today, Western Union remits money from more than 190 countries and territories into India. This is a significant progression in facilitating financial inclusion.
Last month, Western Union announced the opening of its 100,000th agent location in India. Western Union’s agents and sub-agents include banks, post offices, grocery and convenience stores and many other types of businesses.
If India were to deliver payment, saving, insurance and credit products to half the population, it seems logical that — subject to careful screening of providers, efficient regulatory oversight and appropriate limits — the way forward is to take advantage of existing broad-based networks and new consumer technology to selectively open financial services to non-banks, while promoting cooperation among all sectors.


Western Union’s experience gives clear evidence that non-bank financial institutions can foster increased demand for local banking and financial services. For example, Western Union’s insights reveal that in India, the banking access rate for receivers of cash remittances is more than double (51 per cent) that of sending overseas workers themselves (22 per cent).
Many recipients open bank accounts to receive these transfers and, by doing so, give themselves the opportunity to access the full range of banking services. Linking payments received to savings accounts is clearly a way to promote financial inclusion.
Could mobile phone wallets be linked to inward remittances? Could pre-paid cards provide a new financial mechanism for the unbanked? Could village corner stores expand to serve as the agent, not only of Western Union, but of a bank, providing basic, yet fundamental financial services? How does India facilitate greater usage of formal channels for domestic remittances?
Advances in technology have opened up new ways to deliver reliable, transparent, easily monitored and regulated financial services. Large commercial networks already exist that link every corner of India, including that of Western Union. The country is at the forefront of the IT revolution.
There is already a common will of government and businesses to achieve the objective of financial services for all. What is required next is a collaborative approach.
India’s regulators are already moving leaps and bounds in this direction. In a clear sign of its increasing influence on the global financial stage, India recently become the newest member of CGAP (Consultative Group to Assist the Poorest), the independent policy and research centre housed at the World Bank dedicated to improving financial access for the world’s poor. India is the first from emerging markets to join CGAP.
India’s membership is a commendable signal that the Government is committed to providing financial access to the more than 2.5 billion working-age adults under-served by mainstream financial services.

Friday, 8 June 2012


1. When Government of India was approved SBISBS Merger ?
(A) In August 2007
(B) In August 2009
(C) In March 2011
(D) In July 2011
See Answer:(A)

2. When RBI made compulsory to the Basel II norms for Banks ?
(A) March 31, 2007
(B) March 31, 2008
(C) March 31, 2010
 (D) March 31, 2011
See Answer:(B)

3. Which bill passed for reducing the minimum level of government's shareholding in equity of SBI from 55 per cent to 51 per cent ?
(A) SBI (Amendment) Bill 2009
(B) SBI (Amendment) Bill 2010
(C) RBI (Amendment) Bill 2012
(D) None of these
See Answer:(B)

4. The Reverse Repo rate as announced by RBI on April 17, 2012 stand at—
(A) 7•0%
(B) 9•0%
(C) 8•0%
(D) 8•5%
See Answer:(A)

5. The new president of ASSOCHAM for the year 2012-13 is—
(A) Dilip Modi
(B) R. V. Kanoria
(C) Raj Kumar Dhoot
(D) N. L. Kidwai
See Answer:(C)

6. The saving-investment gap during 2010-11 has been estimated at—
(A) 2•8% of GDP 

(B) 3•0% of GDP
(C) 3•2% of GDP 

(D) 3•8% of GDP
See Answer:(A)

7. The pace of credit growth for Private Sector banks increased to 11•7 per cent during—
(A) 2010 -11 

(B) 2009 -10
(C) 2012 -13 

(D) 2008 -10
See Answer:(B)

8. According to RBI, bank loan registered a growth of 21•38 per cent in—
(A) 2010-11 

(B) 2009-10
(C) 2010-12 

(D) 2011-12
See Answer:(A)

9. As per RBI, bank deposits growth stood at....... in 2010-11.
(A) 12% 

(B) 13%
(C) 15•84% 

(D) 14•13%
See Answer:(C)

10. RBI has projected growth of 17% in bank deposits for the entire financial year—
(A) 2011-12 

(B) 2010-11
(C) 2011-13 

(D) 2012-13
See Answer:(A)


1. For the development of the banking facilities in the rural areas the Imperial Bank of India was partially nationalised on—
(A) June 1, 1940
(B) June 1, 1942
(C) July 1, 1955
(D) July 1, 1949
Answer: July 1, 1955

2. The Imperial Bank of India was named as the—
(A) Reserve Bank of India
(B) State Bank of India
(C) Union Bank of India
(D) Bank of India
Answer: State Bank of India

3. Which is/are not an associated bank of SBI ?
(A) The State Bank of Hyderabad
(B) The Union Bank of India
(C) The State Bank of Bikaner and Jaipur
(D) The State Bank of Mysore
Answer: The Union Bank of India

4. In order to have more control over the banks, 14 large commercial banks whose reserves were more than Rs. 50 crore each were nationalized on—
(A) 19th July, 1969 

(B) 19th July, 1970
(C) 19th July, 1971 

(D) 19th July, 1972
Answer: 19th July, 1969

5. Which is not a nationalised bank ?
(A) Bank of India 

(B) Canara Bank
(C) AXIS Bank

 (D) Vijaya Bank
Answer: AXIS Bank

6. When the Government of India merged the New Bank of India with Punjab National Bank ?
(A) Sept. 4, 1993 

(B) July 1, 1990
(C) July 1, 1993 

(D) March 1, 1993
Answer: Sept. 4, 1993

7. Which is the Central Bank of India ?
(A) The Central Bank of India
(B) The State Bank of India
(C) The Reserve Bank of India
(D) The Union Bank of India
Answer: The Reserve Bank of India

8. The RBI was established in—
(A) 1935 

(B) 1940
(C) 1947 

(D) 1949
Answer: 1935

9. When RBI was set up, the Capital of the Bank was—
(A) 500 crore 

(B) 50 crore
(C) 15 crore 

(D) 5 crore
Answer: 5 crore

10. The general administration and direction of RBI is managed by a Central Board of Directors consisting of–
(A) 20 members 

(B) 15 members
(C) 5 members 

(D) 25 members
Answer: 20 members