Back
0

Banking Reforms in India: Key Initiatives and Impact

Description: This quiz aims to assess your understanding of the key initiatives and impact of banking reforms in India. These reforms have significantly transformed the banking sector, leading to increased efficiency, stability, and accessibility of financial services.
Number of Questions: 15
Created by:
Tags: banking reforms financial inclusion npa resolution basel accords banking regulation
Start the Quiz
Attempted 0/15 Correct 0 Score 0
‹
›

Which of the following is NOT a key objective of banking reforms in India?

  1. Promoting financial inclusion

  2. Strengthening the regulatory framework

  3. Reducing the role of the government in banking

  4. Improving the efficiency and competitiveness of banks

Show answer
Correct Option: C
Explanation:

Banking reforms in India have aimed to increase the role of the government in banking through initiatives such as nationalization and the establishment of public sector banks.

The Narasimham Committee, established in 1991, recommended a series of reforms to address the weaknesses of the Indian banking sector. Which of the following was NOT a key recommendation of the committee?

  1. Deregulation of interest rates

  2. Phased reduction in statutory liquidity ratio (SLR)

  3. Strengthening of capital adequacy norms

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

The Narasimham Committee did not recommend the privatization of public sector banks, but it did suggest measures to improve their efficiency and competitiveness.

The Financial Sector Reforms Act, 1993, introduced several important changes to the banking sector in India. Which of the following was NOT a key provision of the act?

  1. Establishment of the Securities and Exchange Board of India (SEBI)

  2. Creation of the Reserve Bank of India (RBI) as the central bank

  3. Introduction of risk-based supervision for banks

  4. Strengthening of the legal framework for recovery of bad loans

Show answer
Correct Option: B
Explanation:

The Reserve Bank of India was established in 1935 and is the central bank of India. The Financial Sector Reforms Act did not create the RBI.

The Basel Accords are a set of international standards for regulating the banking industry. Which of the following is NOT a key objective of the Basel Accords?

  1. Ensuring the safety and soundness of banks

  2. Promoting financial stability

  3. Facilitating cross-border banking

  4. Protecting depositors and creditors

Show answer
Correct Option: C
Explanation:

The Basel Accords do not specifically focus on facilitating cross-border banking, although they may have indirect effects on this area.

The Non-Performing Assets (NPA) problem has been a major challenge for the Indian banking sector. Which of the following is NOT a key initiative taken by the government to address this issue?

  1. Establishment of the Asset Reconstruction Companies (ARCs)

  2. Introduction of the Insolvency and Bankruptcy Code (IBC)

  3. Implementation of the Strategic Debt Restructuring (SDR) scheme

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a direct initiative to address the NPA problem, although it may have indirect effects on the efficiency and performance of banks.

The Pradhan Mantri Jan Dhan Yojana (PMJDY), launched in 2014, is a major financial inclusion initiative in India. Which of the following is NOT a key objective of the PMJDY?

  1. Providing access to banking services to the unbanked population

  2. Promoting financial literacy and awareness

  3. Encouraging the use of digital financial services

  4. Reducing the cost of banking services

Show answer
Correct Option: D
Explanation:

The PMJDY does not specifically focus on reducing the cost of banking services, although it may have indirect effects on this area.

The Unified Payments Interface (UPI), launched in 2016, is a major digital payments initiative in India. Which of the following is NOT a key benefit of UPI?

  1. Real-time fund transfer

  2. Interoperability between different banks and payment platforms

  3. Convenience and ease of use

  4. High transaction fees

Show answer
Correct Option: D
Explanation:

UPI is known for its low transaction fees, making it an attractive option for digital payments.

The Reserve Bank of India (RBI) has implemented several measures to strengthen the regulation and supervision of banks in India. Which of the following is NOT a key element of the RBI's regulatory framework?

  1. Risk-based supervision

  2. On-site and off-site inspections

  3. Stress testing

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a regulatory measure implemented by the RBI.

The Banking Regulation Act, 1949, is the primary legislation governing the banking sector in India. Which of the following is NOT a key provision of the act?

  1. Licensing and regulation of banks

  2. Powers of the Reserve Bank of India (RBI) to regulate banks

  3. Establishment of the Deposit Insurance and Credit Guarantee Corporation (DICGC)

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a provision of the Banking Regulation Act, 1949.

The Reserve Bank of India (RBI) has implemented several measures to promote financial inclusion in India. Which of the following is NOT a key initiative of the RBI in this area?

  1. Establishment of the Small Finance Banks (SFBs)

  2. Introduction of the Pradhan Mantri Jan Dhan Yojana (PMJDY)

  3. Implementation of the Financial Inclusion Plan

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a direct initiative of the RBI to promote financial inclusion.

The Insolvency and Bankruptcy Code (IBC), introduced in 2016, is a major reform in the Indian bankruptcy law. Which of the following is NOT a key objective of the IBC?

  1. Facilitating the resolution of insolvency and bankruptcy cases

  2. Protecting the interests of creditors and stakeholders

  3. Promoting the ease of doing business in India

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a direct objective of the IBC.

The Reserve Bank of India (RBI) has implemented several measures to strengthen the capital adequacy of banks in India. Which of the following is NOT a key element of the RBI's capital adequacy framework?

  1. Basel Accords

  2. Capital-to-Risk Weighted Assets Ratio (CRAR)

  3. Tier 1 and Tier 2 capital requirements

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a direct element of the RBI's capital adequacy framework.

The Financial Stability and Development Council (FSDC) was established in 2010 to promote financial stability and development in India. Which of the following is NOT a key function of the FSDC?

  1. Monitoring and assessing financial stability risks

  2. Coordinating the financial sector policies of different government agencies

  3. Promoting financial inclusion and development

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a direct function of the FSDC.

The Reserve Bank of India (RBI) has implemented several measures to promote digital payments in India. Which of the following is NOT a key initiative of the RBI in this area?

  1. Launch of the Unified Payments Interface (UPI)

  2. Introduction of the Bharat Interface for Money (BHIM) app

  3. Implementation of the National Electronic Toll Collection (NETC) system

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a direct initiative of the RBI to promote digital payments.

The Reserve Bank of India (RBI) has implemented several measures to strengthen the governance of banks in India. Which of the following is NOT a key element of the RBI's governance framework?

  1. Fit and proper criteria for bank directors

  2. Corporate governance guidelines for banks

  3. Risk management framework for banks

  4. Privatization of public sector banks

Show answer
Correct Option: D
Explanation:

Privatization of public sector banks is not a direct element of the RBI's governance framework.

- Hide questions
ADVERTISEMENT

Find more quizzes from top tags

general knowledge
3615 Quizzes
119858 Questions
 technology
307 Quizzes
36705 Questions
 sports
963 Quizzes
19148 Questions
 history
1187 Quizzes
13475 Questions
 physics
598 Quizzes
13441 Questions
 biology
1160 Quizzes
12174 Questions
 science & technology
551 Quizzes
11015 Questions
 chemistry
490 Quizzes
9892 Questions
 maths
518 Quizzes
9324 Questions
 softskills
0 Quizzes
7131 Questions