Banking Awareness Quiz (Priority Sector Lending)

1. The Indian banks who are not able to fulfill the target of 18% for agricultural sectors, are to

(a) deposit the short fall to the Reserve bank of India

(b) deposit the short fall amount with NABARD under RIDF

(c) deposit the short fall with SIDBI under National equity fund

(d) deposit with Government of India

(e) none

2. What  do you mean by Priority sector?

(a) Priority sector means a group of activities which are to be financed on the priority

(b) A group of borrowers, from  whom, recovery to be made on priority basis

(c) A group of peoples, whose accounts to be opened on priority

(d) All

(e) None

3. The concept of priority sector was formalized in 1972 by

(a) Study group constituted in May 1971

(b) Study group constituted in July 1972

(c) Talwar Committee

(d) Padamanabham Committee

(e) None

4. At present, priority sector broadly comprises the following

(a) Agriculture

(b) Small scale industries

(c) Other activities/borrowers such as small business, retail trade, small transport operators, professional and self employed persons, housing ,education loans, micro credit e.t.c

(d) All of the above

(e) None of the above

5. As per the guidelines Reserve Bank of India, the total interest charged/debited to an account should not exceed the principal amount in respect of short-term agriculture advances granted to

(a) Small farmers

(b) Marginal farmers

(c) Small and marginal farmers

(d) Landless labourers

(e) All

6. An overdraft means

(a) Allowing advance against the security of merchandise

(b) Allowing the party to overdraw his account

(c) Credit facility to a party for his short term requirement

(d) All

(e) None

7. Bank can provide finance to transport operations for the purchase of

(a) Trucks, matadors

(b) Buses

(c) Taxis and auto rickshaws

(d) Any of these

(e) None

8. Under the education loan scheme devised by Reserve bank of India?

(a) Repayment of loan will commence after two years of completion of course or six month after getting job, whichever is earlier

(b) Total repayment period including holiday period should not exceed five years from the date of completion of course

(c) Undertaking to repay the loan in the stipulated manner is to be executed by the students

(d) All

(e) None

9. For foreign banks, operating in India, overall target for priority sector lending is

(a) 32%

(b) 42.75%

(c) 33%

(d) 40%

(e) 50%

10. The limit under cash credit facility is worked out on the basis of

(a) Crops to be cultivated and cropping intensity

(b) Area under cultivation and irrigation facilities available

(c) Scale of finance for the concerned crops

(d) All

(e) None

11. Consumption loan above under priority sector can be granted to

(a) Rural artisans

(b) Small/Marginal farmers

(c) Landless labourers

(d) All

(e) None

12. Which of the following statement is correct about kisan credit card?

(a) The rate of interest on kisan credit cards should be same as applicable to crop loans

(b) Banks may provide kisan credit cards to farmers who are eligible for sanction of crop loans without any floor limit

(c) Credit would be available in the form of revolving cash credit normally valid for three years

(d) All

(e) None

13. What role does Micro, small and Medium Enterprises(MSMEs) play in a country’s economic and industrial development?

(A) They have the capacity to absorb skilled and unskilled labour available in the country.

(B) Such institutions help in distribution of income in a wide spectrum and do not allow it to get concentrated in few hands or in few areas.

(C) They help in eradication of poverty by providing self – employment opportunities. 

(a) Only A

(b) Only (B)

(c) Only C

(d) Only A and C 

(e) All A, B and C 

14. Which of the following organization prepares rural credit plans on annual basis for all districts in India, which is turn form the base for annual credit plans of all rural financial institutions?

(a) SIDBI

(b) NABARD

(c) RBI

(d) Indian bank’s association

(e) CII

15.The approach of ‘micro-credit’ or ‘banking with the poor’ is comparatively a new concept in the field of rural credit. This approach has been tried very successfully in which of the following countries?

(a) Bangladesh

(b) India

(c) China

(d) Japan

(e) None of these

Answers:
1. b
2. a
3. a
4. d
5. c
6. b
7. d
8. b
9. a
10. d
11. d
12. d
13. e
14. b

15. a