BANKING AWARENESS STUDY MATERIAL

Payment Banks: Payments banks are expected to provide small savings accounts, payments/ remittance services to migrant labour workforce, low-income households, small businesses, other un-organised sector entities and other users, by enabling high volume-low value transactions in deposits and payments/ remittance services in a secured technology-driven environment. A
payment bank is covered under sections 5 (b) and 6 (1) (a) to (o) of the Banking Regulation Act, 1949.

How payment banks are different from regular banks: 
These banks can only receive deposits and remittances but cannot carry out lending activities. Aiming at financial inclusion, these banks will provide banking services to migrant labourers, low income households, etc.
1. What is the maximum amount that can be saved under payment bank account?
A: The maximum deposit that a payment bank can accept from an individual customer is Rs 1 lakh.

2. Can a credit card be issued under this scheme?
A: NO

3. Can a payment bank can issue a debit and ATM cards for easy transactions?
A: YES

4. What is the amount of loan that can be sanctioned by a payment bank?
A: No Loan facility. The Reserve Bank has clearly stated that a payments bank cannot undertake any lending activity.

5. Is it safe to save money with a payment bank?
A: YES. Besides normal CRR (Cash Reserve Ratio) to be maintained with the RBI, a payments bank will be required to invest 75% of its demand deposit balances in Statutory Liquidity Ratio (SLR) eligible government securities and treasury bills. Further, a maximum of 25% will have to be held in current and fixed deposits with other scheduled commercial banks.

6. What is the capital required for opening payments pay?
A: Rs 100 crore

7. Who led the committee on Comprehensive Financial Services for Small Businesses and Low Income Households formed in 2013?
A: Nachiket Mor

8. Who all got licences: Aditya Birla Nuvo, Airtel M Commerce, Vodafone m-pesa, Tech Mahindra, Vijay S Sharma of Paytm, Dilip Shanghvi of Sun Pharma, Reliance Industries, NSDL, Fino PayTech, Cholamandalam Dist and Department of Posts.

9. When the operations are likely to start?
A: The companies selected will be given "in-principle" approval for 18 months, after which they will be given licences if they fulfil all conditions stipulated by the RBI.

Questionnaire on Union Budget 2015-16

1. In the Union Budget, rate of Service Tax was hiked from 12% to ____ - 14%
2. In the Union Budget 2015-16, Fiscal deficit seen at how much per cent of GDP in 2015/16? - 3.9 %
3. How much amount has been allocated to the Rural Infrastructure Development Bank in the Union Budget 2015-16? - Rs. 25,000 crore
4. According to the Union Budget, two new IIM will be opened in which of the following states? -Jammu & Kashmir and Andhra Pradesh
5. According to the Union Budget 2015-16, Non-Banking Financial Companies (NBFCs) registered with Reserve Bank of India (RBI) above _______ will be now considered as financial institutions? - Rs. 5,000 crore
6. How much amount has been allocated for Rural Employment Guarantee Scheme in the Union Budget 2015-16? - 346.99 billion rupees
7. How much amount has been allocated to Defence sector in the Union Budget 2015-16? - Rs. 2,46,726 crore
8. According to the Union Budget, how much per cent of Revenue Deficit to be seen in 2015-16? - 2.8%
9. According to the Union Budget 2015-16, how much per cent, rate of corporate tax will be reduced over next four years? - 25%
10. According to the Union Budget 2015-16, now details of PAN has to mentioned compulsory for transactions for more than _____.- Rs. 1 lakh
11. In the Union Budget 2015-16, increase in the limit of health insurance premium from current Rs 15,000 to ____.Rs. 25,000
12. How much amount has been allocated for micro-irrigation watershed projects in the Union Budget 2015-16? - Rs. 5,300 Crore
13. How much amount has been allocated to Infrastructure sector in the Union Budget 2015-16? - Rs. 70,000 crore
14. According to the Union Budget 2015-16, Visa on arrival for how many countries? – 150
15. According to the Union Budget, Centre of film production, animation and gaming to come up in _____. AP
16. On which date Union Budget 2015-16 was presented in Parliament? - 28 February 2015
17. Name the Union Finance Minister who presented the Union Budget 2015-16 in Parliament? - Arun Jaitley
18. Personal Income Tax limit was not changed in Union Budget 2015-16. What is the present Personal I-T exemption limit? - Rs 2.5 lakh
19. Health Insurance Premium deduction hiked from Rs. 15,000 to?- Rs. 25,000 (for senior citizens to Rs. 30,000)
20. Transport allowance exemption hiked to Rs. 1,600, from ____ per month? - Rs.800
21. PAN card is must for all purchase above ______ rupees as proposed in Budget 2015-16? - Rs. 1 lakh
22. An additional _____% surcharge on people earning over Rs. 1 cr was put forth in the budget 2015-16? - 2%
23. What change was made in the Wealth tax? - Wealth tax abolished
24. DTC was dropped in the Budget 2015-16. Expand DTC? - Direct Taxes Code
25. Corporate tax to be reduced from 30% to ___ over next four years? - 25%
26. Mudra banks to be established with capital of Rs.___ crore?- 20000
27. Rs. ____ deduction for contribution to New Pension Scheme?- Rs. 50,000
28. GAAR implementation deferred by 2 years to? - April 2017
29. Service Tax rate hiked to ___% from 12.36%? - 14%
30. Tax free bonds were proposed in budget for? - Roads, railways, irrigation project