banking and financial awareness => june – september 2014

Letz Talk => A Complete Current Affairs Solution [www.facebook.com/4krrish]

‘Banking and Financial Awareness’ => June – September 2014

Dear aspirants,

We hope the last edition of Banking and Financial awareness fact file was very helpful to you. This study material is the second edition which contains facts from last June to September. We expect you can easily answer the current affairs questions in the forthcoming CWE of IBPS PO with the help of this file. Wish you guyz All the best…. For More Current Affairs and GK stay tuned to our page...

1. Which public-sector bank declared Kingfisher Airlines, its promoter Vijay Mallya and three directors as “wilful

defaulters” on 1 September 2014, with which it became the first bank to make such a declaration against Mallya?

– United Bank of India (UBI)______Note : Kolkata-based United Bank of India (UBI) is a part of the State Bank of

India-led consortium to have financed Kingfisher and has an exposure of around Rs. 400 crore to it. A “wilful

defaulter” tag means Mallya cannot be on the board of any company nor can he raise money from the public. He

can also be subjected to criminal proceedings under Sections 403 and 425 of the IPC, dealing with

misappropriation and fraud.

2. The Law Ministry of India has opined that the Government of India has all the powers to print currency notes of

Re. 1 denomination. Why the opinion of Law Ministry on this issue was taken? – The RBI was of the view that

with the repeal of Section 2 of the Currency Ordinance, the Government of India is not empowered to issue

note of denominational value of one rupee______Note : Section 4 of the Coinage Act of 2011 provides that the

central government may authorise minting of coin of denomination not higher than Rs. 1,000. The definition of

coin in the Act makes it clear that Government of India one rupee note is included in the definition of coin. The

Law Ministry in its opinion stated that the Act, which consolidates the laws relating to coinage and the mints, does

not bar the Government of India from printing one rupee notes. The printing of notes in the denominations of Re.

1 and Rs. 2 has been discontinued as these denominations have been coinised. However, such notes issued earlier

are still in circulation.

3. NIFTY, the 50-scrip benchmark index of the National Stock Exchange (NSE) crossed which milestone mark for the

first time on 1 September 2014? – 8,000 mark____Note : Nifty hit 8,000 level for the first time while Sensex hit a

new high of 26,900 on 1 September mainly due to positive GDP growth figures released recently. The CSO had

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estimated 5.7% GDP growth rate during the first quarter of 2014-15, which is the best quarter performance since

March 2012.

4. The Reserve Bank of India (RBI) cancelled licences of five non-banking financial companies (NBFCs) on 2

September 2014. These NBFCs include Unichem Finance & Enterprises Pvt., Shimansu Vyaparik Kendra Ltd., Shree

Bhagwati Marketing Private Ltd. and Sureka Teknik Private Limited. All these NBFCs are based in same city. Which

city is this? – Kolkata

5. The Competition Commission of India (CCI) during September 2014 initiated an investigation against public

sector general insurers and their association. The PSU insurance companies against whom this investigation has

been initiated include New India Insurance, Oriental Insurance, United India Insurance and National Insurance, as

well as their combine, the General Insurers’ (Public Sector) Association of India (GIPSA). What is the reason for this

investigation? – Alleged anti-competitive practices relating to third-party administrators (TPAs) in health

insurance committed by these companies_____Note :The charges against these public general insurers are that

they are not allowing TPAs to function independently and have created in-house TPAs to settle any claims. It is

also alleged that GIPSA, an ad hoc and unregistered body, was providing a platform to the companies to share

sensitive information with each other. This affects competition in the market and also provides space to them for

exchanging information regarding claims ratios, marketing efforts and terms and condition of TPAs, among others.

6. The Union Government during September 2014 asked Expenditure Management Commission (EMC) to suggest

an effective strategy for meeting reasonable proportion of expenditure on services through user charges. The

newly set up EMC will have to review the major areas of Central Government expenditure and suggest ways for

creating fiscal space required to meet developmental expenditure needs. Who is heading EMC? – Bimal Jalan

(former RBI Governor) ______Note : Bimal Jalan, who has been conferred with the status of a Union Cabinet

Minister, has been asked to design a framework to improve the operational efficiency of expenditures through

focus on utilisation, targets and outcomes. Union govt. has asked the EMC to review the fiscal responsibility and

budget management (FRBM) rules to suggest improvements for enforcing better fiscal discipline. The EMC, which

will be headquartered in New Delhi, will have to submit an interim report before Budget 2015-16.

7. India has been ranked third in a list of countries most affected by online banking malware during the April-June

quarter of 2014 as announced by security solutions provider Trend Micro on 6 September 2014. Which country

has been ranked first in this list? – Japan__________Note : Japan topped the list with the highest number of

online banking malware infections during the April-June quarter of 2014. In May alone, it saw 13,000 malware

infections. Japan was followed by U.S. in this list which saw about 5,000 malware infections during the month,

followed by India with 3,000 attacks. Growing Internet penetration and rising popularity of online banking have

made India a favourite among cybercriminals, who target online financial transactions using malware. These and

many such incidents show that cybercriminals will always adapt to new trends and situations whether in the use of

new malware or targeted attacks techniques to continue their attacks.

8. After being in business for seven years, Future Generali Life Insurance has reported its maiden quarterly profit

during the quarter ended 30 June 2014. Future Generali Life Insurance is the part of which group? – Future

Group__________Note : Future Generali Life Insurance is life insurance venture between Kishore Biyani’s Future

Group and Italian insurance company Generali.



9. Barring a few, most of the life insurance companies have disclosed lower ‘persistency ratios’ for the first quarter

of the current fiscal ended 30 June 2014 as also for the full financial year ended 31 March 2014. What is the

reason for lower ‘persistency ratio’? – A new standardised disclosure regime put in place for insurance

sector__________Note : The persistency ratio broadly measures the quantum of the customer retention by the

life insurance companies, while determining the percentage of policyholders paying renewal premiums at the end

of one year, or more years depending on the tenure of the policy. However, persistency ratio has been one of the

most abused financial metric by many insurers, who tend to disclose their best possible persistency ratios without

following any standard formula or any specific time period. The insurance sector regulator IRDA earlier this year

made changes in norms for such disclosures and put in place a standard formula to be followed by all companies

in reporting their 13th month persistency ratios. An analysis of the disclosures made by various life insurers so far

this year shows that there has been a marked decline in the high level of persistency reported earlier by many

companies.

10. What is the name of a deadly ‘Trojan’ virus which hacks and steals personal credit and debit card data and is

prowling in the Indian cyberspace as announced on 3 September 2014 by Indian cyber security watchdog CERT-In?

– “Backoff” __________Note : Explanation : “Backoff” is being seen spreading through computer networks which

use Windows as their operating systems. It targets Point of Sale (POS) systems and propagates by scanning for

systems with remote desktop applications enabled. The virus is capable of stealing customer payment cards data

like card holders name, account number, expiration data, CVV code among others from POS systems. The virus is

so notorious that it is able to capture keystrokes and communicate with the command and control server for

further hacking. CERT-In (Computer Emergency Response Team India) is the nodal agency to combat hacking,

phishing and to fortify security-related defences of the Indian Internet domain.

11. The ambitious Pradhan Mantri Jan Dhan Yojana (PMJDY) was launched formally on 28 August 2014 by the

Prime Minister Narendra Modi at function held at Vigyan Bhawan in New Delhi. The scheme promoted mainly to

end financial untouchability in India saw the opening of an estimated 1.5 crore bank accounts across the country

on this single day. What are the main benefits for families opening accounts under PMJDY?

a. A RuPay debit card for every account holder

b. Rs. 1 lakh accident insurance cover

c. Rs. 5,000 overdraft facility

d. Additional Rs. 30,000/- life insurance cover for those opening bank accounts before 26 January 2015

e.

12. Which professional services firm was hired by the Union Finance Ministry to undertake a validation exercise

of the number of basic bank accounts opened by the banks under the Pradhan Mantri Jan Dhan Yojana (PMJDY)? –

KPMG__________Note :KPMG would provide some comfort to the Finance Ministry that the numbers submitted

by the banks pertaining to PMJDY were accurate and reflected the true picture. KPMG’s confirmation of the

number of accounts opened will help the Centre pitch for an entry into the Guinness Book of World Records for

the maximum number of bank accounts opened in a day. On 28 August 2014, the launch date of the PMJDY, the

banking system had opened around 1.5 crore bank accounts. KPMG has already commenced work for this purpose

and have approached banks to share information on the number of accounts opened under the PMJDY. Under the



PMJDY, the Government is looking to open at least 7.5 crore basic bank accounts for 7.5 crore unbanked families

in the country.

13. What is the slogan (punchline) of Pradhan Mantri Jan Dhan Yojana (PMJDY) which was launched on 28

August 2014? – “Mera khaata Bhagya vidhataa” (which means “My Bank Account – The Good Fortune Creator”)

14. Which public sector bank on 5 September 2014 Pehla Kadam and Pehli Udaan – two new Savings Bank

products for children? – State Bank of India (SBI) __________Note :Pehla Kadam is a Savings Bank account for

minor of any age operated jointly with his/her parent/guardian, while Pehli Udaan is a singly operated Savings

Bank Account for a minor aged 10 years and above and who can sign uniformly. Specially branded passbook and

cheque book have been designed for these products. All the account holders will be given an exclusively designed

personalised photo ATM-cum-Debit Card. Other features bundled along with the two products include Internet

banking with limited transaction facilities like bill payment, opening of fixed deposits, recurring deposits, etc. with

per day transaction limit of Rs. 5,000, and mobile banking with limited transaction facilities like bill payment, and

top-ups with per day transaction limit of Rs. 2,000.

15. The Reserve Bank of India (RBI) during August 2014 notified that the two-step authentication for credit card

transactions including ‘card not present transactions’ is a must as mandated under the rules. This announcement

was made by the RBI primarily to set right which anomaly? – To bring under check the so-called customer-

friendly payment model followed by certain service providers__________Note :The toughening RBI stance on

two-step authentication process is primarily aimed to set right an unintended wrong arising out of the so-called

customer-friendly payment model followed by certain service providers. By doing so, they have managed to give

the two-step authentication requirement a slip. According to the RBI, however, this is resulting in foreign

exchange outflow. The non-adherence to the two-step authentication process has also made the field uneven for

players especially in fields such as taxi operation. Frequent taxi users among credit card holders will prefer a cab

provider who accepts a hassle-free payment process.

16. The much-awaited minimum monthly pension of Rs. 1,000 and a higher wage ceiling of Rs. 15,000 for social

security scheme run by retirement fund manager Employees’ Provident Fund Organisation (EPFO) came into effect

from 1 September 2014. This Rs. 1,000 pension scheme is being made available under which scheme of EPFO? –

Employees’ Pension Scheme 1995 (EPS-95) __________Note :The government has notified enhancement of wage

ceiling to Rs. 15,000 per month, fixed minimum monthly pension at Rs. 1,000 under EPS-95 and enhanced the

maximum sum assured under the Employees’ Deposit Linked Insurance (EDLI) Scheme to Rs. three lakh. The

government’s decision to fix pension entitlement of Rs. 1,000 under the Employees’ Pension Scheme 1995 (EPFS-

95) will immediately benefit 28 lakh pensioners who get less than this amount at present. The move to enhance

the minimum wage ceiling for becoming a subscriber of Employees’ Provident Fund Organisation to Rs. 15,000 per

month is expected to bring 50 lakh additional formal sector workers under the ambit of the body.

17. To strengthen warehousing facilities in the commodity futures market, regulator Forward Markets

Commission (FMC) has come out with which important proposal during August 2014? – Uniform norms should be

established for the accreditation of warehousing service providers__________Note :The draft rules, on which

public comments have been sought by 15 September 2014, come in the wake of Rs 5,600 crore payment scam at

the National Spot Exchange Ltd (NSEL) that surfaced in July last year, exposing loopholes in the system. The



proposed changes are being made because at present no uniform norms are being followed by national level

commodity exchanges for accreditation of warehousing service providers (WSPs).

18. What is the most important recommendation of the Kelkar Committee on gas pricing, as disclosed in the

second report of the committee presented during August 2014? – Domestic gas prices should be linked to the

market__________Note :The committee to recommend a new gas-pricing formula was constituted in 2013 under

former Finance Secretary Vijay Kelkar. The suggestion of market-linked pricing for domestic natural gas came after

a series of consultations by the committee. The committee in its recommendations said that natural resources

should be priced at the highest price possible in the market, based on market-determined pricing. This will ensure

energy security for the country by encouraging domestic exploration and production, efficient use of the resource

and reduction in the import burden. The first report of this committee was brought out in January 2014.

19. The Central Board of Direct Taxes (CBDT) on 28 August 2014 constituted a high-level committee to scrutinise

all income tax cases arising out of the retrospective tax amendment. Which govt. official heads this committee? –

The Joint Secretary of the Foreign Tax and Tax Research Unit -1 of CBDT__________Note :The announcement

about this mechanism was announced by Finance Minister Arun Jaitley in his Budget 2014-15 speech on 10 July

2014. According to the terms of reference for the new committee, it would decide on such retrospective cases

within of 60 days of receiving them from the Assessing Officer. Retrospective tax is the tax rate levied by income

tax department which is perceived higher by the company being assessed, charged higher due to some unknown

reasons.

20. Ratan Tata, Tata Sons Chairman Emeritus, recently made personal investments in which online marketplace

company? – Snapdeal.com__________Note :Snapdeal is the second largest online marketplace in India after

Flipkart.com. The company has raised about $400 million since its inception and has invested about $100 million in

logistics and operations to expand its presence in the $3 billion Indian e-Commerce market. Snapdeal currently

houses over 5 million products across 500 diverse categories from over 50,000 sellers. Snapdeal claims that it had

seen 600% growth year-on-year for the last two years.

21. The Reserve Bank of India (RBI) on 18 August 2014 constituted a 15-member inter-regulatory committee to

monitor the growing phenomenon of shadow banking. Who has been appointed as the Chairman of this

committee? – P. Vijaya Bhaskar (Executive Director, RBI) _____Note : Shadow banking refers to banking-like

activity by non-banking finance companies (NBFCs) that remain outside the regulatory net. They generally operate

as intermediaries between investors and borrowers. The role of this newly constituted committee will be to find

out the volume of money in shadow banks, who the investors are and direction of the money flow, etc. Also real

estate dealings will be looked into very meticulously by the committee. The 15-member committee comprises of

officials of the RBI, Securities and Exchange Board of India (SEBI), Central Economic Intelligence Bureau and the

National Housing Bank (NHB).

22. What is the name of the new scheme announced by the Prime Minister Narendra Modi on 15 August 2014

to help the poor in opening bank accounts, which will come with the facility of a debit card and an accidental

insurance cover of Rs. 1 lakh? – ‘Pradhan Mantri Jan Dhan Yojana’_____Note : The Union Cabinet has already

cleared the two-phase financial inclusion scheme under which bank accounts will be opened for 15 crore poor

persons with an overdraft facility of Rs 5,000 and accidental insurance cover of Rs. 1 lakh. The scheme, to be



pushed by the government in a mission mode, seeks to provide two accounts to 7.5 crore identified households by

August 2018. The Prime Minister in his Independence Day address observed that people have mobile phones but

not bank accounts and he hoped that the scheme will help in bringing the benefits of formal banking system to

them.

23. The Reserve Bank of India (RBI) on 22 August 2014 released the charter of customer rights, which seeks to

provide the right to be treated with courtesy to both the customer and the financial services provider. What are

the important clauses of this charter?

a. The customer should not be unfairly discriminated against on grounds such as gender, age, religion, caste and

physical ability when offering and delivering financial products by the financial services provider

b. The key risks associated with the financial product as well as any features that may especially disadvantage

the customer should be made known to him/her by the financial services provider

c. The financial services provider should provide customers with product terms and conditions that are in simple

language, easily understandable, and with sufficient information that the customer could be reasonably

expected to make an appropriate choice of product

d. The financial services provider may, however, have certain special products which are specifically designed for

members of a target market group or may use defensible, commercially acceptable economic rationale for

discriminating between customers

24. The Reserve Bank of India (RBI) announced on 14 August 2014 that its board has given approval to create an

additional post in the rank of Deputy Governor. For this RBI has approached the government for required

legislative changes. Which post is this? – Chief Operating Officer (COO) _____Note : The RBI, the central bank of

India, is presently headed by a Governor and assisted by four deputy governors looking after different functions of

the bank. It now wants to create a post of COO and re-allocate work among the five. The RBI has been deliberating

on a broad HR restructuring exercise to align organisational resources and structures with the needs of the

domestic economy and changes in the external environment.

25. Who took over as the fourth Deputy Governor of the Reserve Bank of India (RBI) during July 2014? –

Subhash Sheoratan Mundra or S.S. Mundra_____Note : S.S. Mundra took the charge as the Deputy Governor of

the RBI on 31 July 2014. Three other deputy governors of the RBI are Urjit Patel, HR Khan, and R. Gandhi. Before

taking this responsibility at RBI, Mundra was the Chairman and Managing Director (CMD) of the public-sector bank

– Bank of Baroda (BOB). Mundra filled the vacancy created by the retirement of K.C. Chakrabarty in April 2014,

two months before his five-year tenure was come to an end.

26. On 20 August 2014 the Finance Ministry ordered a forensic audit to be done at the branches of two banks in

view of the reports of misappropriation of funds worth Rs. 436 crore. Which two banks are involved in this

matter? – Dena Bank and Oriental Bank of Commerce (OBC) _____Note : According to media reports, a Mumbai-

based branch manager of Dena Bank mobilised fixed deposits (FDs), using middlemen, to the tune of Rs 256.5

crore from seven corporates, while in the case of OBC, misappropriation of funds to the tune of Rs. 180 crore was

reported. In the wake of rising scams in public sector banks, the Finance Ministry is looking at various steps,



including strengthening of risk management, appointment of bank chiefs for longer tenures, separation of posts

and better quality of nominee and independent directors.

27. Which international finance entity launched a $2.5-billion onshore Indian rupee bond programme on 20

August 2014 so as to strengthen the capital market and support infrastructure development in India? –

International Finance Corporation (IFC) _____Note : IFC is a member of the World Bank Group. It finances and

provides advice for private sector ventures and projects in developing countries in partnership with domestic

financial institutions and banks. Under the rupee bond programme, IFC will use a combination of rupee-

denominated bonds and swaps to raise local currency financing of up to $2.5 billion or Rs. 15,000 crore over the

next five years. Proceeds from the programme will be used for infrastructure investments in India.

28. What is the name of the ambitious e-governance project of the Union Govt., which was approved by the

Union Cabinet on 20 August 2014 and which aims to ensure that government services are available to citizens

electronically? – ‘Digital India’ Project_____Note : The project, which has a total overlay of Rs 1 lakh crore, aims

to ensure that government services are available to citizens electronically and help people gain benefits from the

latest information and communication technology. ‘Digital India’ project envisages bringing all the existing

initiatives such as the Ebiz project, E-kranti, virtual classroom, e-visas and the National Optical Fibre Network

project under a single umbrella. Other programmes include implementation of e-office to make Government

departments paperless, encouraging domestic manufacturing of electronic products and kick starting Research &

Development and entrepreneurship development fund. The project was unveiled in the Budget 2014-15 and is

being directly monitored by Prime Minister Narendra Modi.

29. What is the name of the controversial survey conducted by the Telangana Government throughout the state

on 19 August 2014 and due to which various sections of the state were scared and apprehensive? – “Samagra

Kutumbh Survey” or “Intensive Household Survey” _____Note : The “Intensive Household Survey”, completed in

one day across Telangana, was to identify genuine beneficiaries of government welfare measures. The surveyors

sought to see bank account details and the Aadhar card. The government had declared holidays under the Shops

and Establishment Act. Residents of Telangana, especially capital Hyderabad, who originally came from Andhra

areas were scared with this survey as they felt that the information collected from them would be used against

them at a later stage. As various sections of the state populace were apprehensive about this survey, the matter

was taken to the Hyderabad High Court about validity of the survey. The High Court on 14 August 2014 permitted

the Telangana government to go ahead with the survey on the assurance of the state’s Advocate General that the

exercise was not mandatory and denizens could choose not to answer the queries of enumerators. The survey was

conducted across the ten districts in the state with the help of four lakh government employees and a huge team

of outsourced enumerators in the state.

30. India’s capital market regulator SEBI on 22 August 2014 ordered which NBFC entity to refund the money

raised from some 58.5 million customers through collective investment schemes (CIS)? – Pearls Agrotech Corp.

Ltd_____Note : Delhi-based Pearls Agrotech operates from 15 regional offices and had 3.35 million field associates

in 2011-12. SEBI found Pearls Agrotech violating CIS regulations by mobilizing the money without being registered

with the regulator. The company offered two kinds of plans- a cash-down payment plan and an instalment



payment plan. Under the former, it offered to allot land to customers within 270 days of payment and under the

latter within 90 days.

31. The Reserve Bank of India on 14 August 2014 announced its decision to reduce the number of mandated

free transactions for savings bank account holders at other bank ATMs located in six metro cities from five to three

per month. This reduction would come into effect from which date? – 1 November 2014_____Note : The six

metro cities (Mumbai, New Delhi, Chennai, Kolkata, Bengaluru and Hyderabad) were chosen first for reducing the

number of mandated free transactions as they are well-served in terms of payment infrastructure. This reduction

in the number of mandated free transactions will, however, not apply to customers having no-frills/small/Basic

Savings Bank Deposit Account (BSBDA) type of accounts as well as for transactions done by savings bank account

holders at ATMs situated outside these six metro cities. Banks are also free to offer free transactions above this

mandated limit.

32. The Reserve Bank of India (RBI) on 6 August 2014 issued guidelines for asset reconstruction companies

(ARCs) to increase their investments in security receipts (SRs) with the objective of strengthening the asset

recovery sector. What is the minimum prescribed percentage of funds that ARCs would now have to invest in SRs

as directed in this RBI guideline? – 15%_____Note : This minimum investment requirement for ARCs was 5% at

present. Public sector banks sell their bad loans or NPAs (non-performing assets) to these ARCs. Sale of bad loans

to ARCs gained momentum in 2013-14 mainly because banks were able to obtain better prices for these sales. But

this RBI directive is likely to dissuade ARCs from offering a better price, since they will now have to make a higher

upfront payment.

33. The Reserve Bank of India (RBI) presented its bi-monthly policy review on 5 August 2014. It kept the policy

repo rate under the liquidity adjustment facility (LAF) unchanged at 8.0%. It also left the cash reserve ratio (CRR) of

scheduled banks unchanged at 4.0% of net demand and time liabilities (NDTL). However, which was the only major

rate to be changed in this policy review? – The Statutory Liquidity Ratio (SLR) _____Note : The SLR of scheduled

commercial banks was reduced by 50 basis points from 22.5% to 22.0% of their NDTL with effect from the

fortnight beginning 9 August 2014. The major rates after this policy review are as follows: Short-term lending

(repo) rate unchanged at 8% Cash reserve ratio (CRR) unchanged at 4% SLR cut by 0.50% to 22% to unlock

banking funds Lowers banks’ SLR holdings in held-to-maturity category by 0.5% to 24%

34. Indian Parliament on 12 August 2014 passed the bill to empower SEBI to act against ponzi operators and

market manipulators more effectively. What is the name of this bill? – The Securities Law (Amendment) Bill, 2014

_____Note : The bill was passed by the Lok Sabha on 6 August 2014 and the Rajya Sabha passed it on 12 August

2014. It empowers SEBI to act against ponzi operators and market manipulators more effectively through search

and seizure, attachment orders and recovery proceedings and with access to call data records. This marks a

dilution from the direct powers granted to SEBI Chairman through as many as three ordinances in the past one

year to authorise search and seizure operations. Under the act constituted (with the passing of this bill), a special

SEBI court would be set up in Mumbai to fast track prosecution proceedings launched by SEBI, as also to clear

search and seizure operations proposed by SEBI.

35. India’s capital market regulator SEBI cleared final guidelines for creation and listing of business trusts for key

sectors of real estate and infrastructure on 10 August 2014. These guidelines have been cleared to help attract



greater foreign and domestic investments into these sectors. What are the names of business trusts associated

with real estate and infrastructure which would be created and listed with these SEBI guidelines? – Real Estate

Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) _____Note : Finance Minister Arun Jaitley

had outlined the proposal for establishment of Real Estate Investment Trusts (REITs) and Infrastructure

Investment Trusts (InvITs) in the Union Budget 2014-15 presented on 10 July 2014. The new norms would enable

listing and trading of REITs and InvITs as any other security on the stock exchange platforms and would also help

create new platforms for raising of funds by real estate and infrastructure companies. Along with foreign

investors, domestic institutions like insurers, pension funds and provident funds would also be allowed to invest in

these trusts.

36. In order to solve the ongoing tussle between India and the WTO (World Trade Organisation), India during

August 2014 suggested fixing of the base year for food subsidies on the basis of average of last three years. What

is the year proposed by the WTO to be taken as the base year? – 1986-87 _____Note : India is of the view that

taking 1986-87 as a base year in 2014-15 is completely illogical and it has hence suggested a more scientific

calculation for base year calculation. Indian Government had vetoed the adoption of a WTO treaty to simplify,

standardise and streamline the rules for shipping goods across borders, having previously agreed to its terms at a

ministerial conference in Bali (Indonesia) during December 2013. India wanted more attention paid to its concerns

over WTO limits on stockpiling of food which will ultimately hit its subsidised food distribution programme, the

world’s largest, targeted at nearly 850 million people.

37. SEBI gave its approval to single registration for stock brokers during August 2014. What would be the main

benefit for brokers with this approval? – Now the brokers would not need to obtain multiple certificates from

SEBI for operating in the different segments of equity, equity derivatives, currency derivative and debt

_____Note : Under the proposed regime, initial certificate of registration as stock broker/clearing member will be

granted by SEBI and subsequent permissions to act as stock brokers/clearing member of other stock

exchanges/clearing corporations will be granted by respective stock exchange/clearing corporation after following

the prescribed procedure. The latest SEBI move will also obviate the need for separate certificate for each

category of operations – trading member, trading-cum-self clearing member and professional clearing member.

38. Petroleum Ministry during August 2014 accorded its in-principle approval for stake-sale in ONGC which may

fetch the government about Rs. 18,000 crore to meet disinvestment target for the current fiscal. For this how

much stake-sale in the company is proposed? – 5% _____Note : As per the Budget 2014-15, the disinvestment

target is Rs. 58,425 crore including receipts from disinvestment of government stake in the non-government

companies. The Department of Disinvestment (DoD) has kickstarted the process of stake sale in ONGC and has

invited bids for appointing merchant bankers to manage the share sale.

39. Indian Railways during August 2014 launched a contact-less smart card enabling passengers to pay for

reserved as well as unreserved travelling train tickets as part of a pilot project. What is the name of this smart card

with lifetime validity? – ‘Go-India’ _____Note : The ‘Go-India’ Card has been launched to be used at nominated

UTS counters and Automatic Ticket Vending Machines (ATVMs) and nominated PRS counters for reserved tickets.

The card will enable passengers to pay for tickets for long distance reserved, unreserved and suburban journeys. It

is part of a pilot project to be implemented on two sectors – New Delhi – Howrah and New Delhi – Mumbai. On



New Delhi – Howrah sector this card could be used at 6 railway stations – New Delhi, Kanpur, Allahabad, Dhanbad,

Asansol and Howrah whereas on New Delhi – Mumbai sector the card could be used at New Delhi, Kota,

Vadodara, Ratlam, Surat and Mumbai Central. The card would be of pre-paid nature and can be bought for Rs. 70

where passenger can get a value of Rs. 20 balance. After that the card can be recharged for Rs. 20 or in multiples

of Rs. 50 up to Rs. 5,000. Maximum recharge value for ‘Go-India’ Card would be Rs. 10,000.

40. What is the name of the proposed airline of Tata-SIA Airlines Limited (TSAL), a joint-venture between Tata

Group and Singapore International Airlines (SIA)? – ‘Vistara’ _____Note : The much-anticipated name was

announced on 11 August 2014 by TSAL amid the release of the aubergine and gold logo of ‘Vistara’. ‘Vistara’ is

derived from the Sanskrit word, which means limitless expanse and draws inspiration from the brand’s domain –

the limitless sky. It would be a full service airline service and may take to the skies in October 2014.

41. The Union Govt. on 26 July 2014 launched a web portal for enabling government-citizen discussions on

several issues. What is the name of this portal which was inaugurated by Prime Minister Narendra Modi? –

MyGov_____Note : The main objective of MyGov is to engage the youth of the country in the nation’s

development. It presents an opportunity to citizens to both discuss and do constructive work. There are multiple

theme-based discussions on MyGov where a range of people would share their thoughts and ideas. The portal is

implemented and managed by National Informatics Centre (NIC) and the Department of Electronics and

Information Technology (DeitY).

42. Public sector based Central Bank during July 2014 announced its plans to sell 4% of its stake to LIC for Rs.

581 crore. This stake sale is planned to meet bank’s capital requirement of Rs. 2,000 crore this fiscal. With this

proposed sale Union Govt.’s holding in Central Bank would come down to – 84%_____Note : Presently the Union

Govt. holds 88% stake in Central Bank. Once the bank gets funds from LIC, it will then approach the government

for around Rs. 1,500 crore of additional capital. The government has earmarked only Rs.11,200 crore for fund

infusion into public sector banks this current fiscal, down from Rs.14,000 crore in the last fiscal.

43. How many banks were fined by the Reserve Bank of India (RBI) on 25 July 2014 for violating central bank

rules in the case of Deccan Chronicle Holdings? – 12_____Note : These 12 banks are – Andhra Bank (Rs 10 lakh),

Axis Bank (Rs 15 lakh), Canara Bank (Rs 10 lakh), Corporation Bank (Rs 10 lakh), HDFC Bank (Rs 5 lakh), ICICI Bank

(Rs 40 lakh), IDBI Bank (Rs 15 lakh), IndusInd Bank (Rs 10 lakh), Kotak Mahindra Bank (Rs 10 lakh), Ratnakar Bank

(Rs 5 lakh), State Bank of Hyderabad (Rs 10 lakh) and Yes Bank (Rs 10 lakh). The RBI had carried out a scrutiny of

the loan and current accounts of Deccan Chronicle Holdings Ltd., in certain branches of these banks in late 2013.

After this scrutiny it came to the conclusion that some of the violations were substantiated and warranted

imposition of monetary penalty.

44. The government of Portugal on 4 August 2014 announced how much relief package for country’s largest

listed bank – Banco Espirito Santo (BES) to bill out the beleaguered bank? – 4.9 billion euros ($6.58 billion)

_____Note : This relief package was announced just months after Portugal exited an international bailout and is

therefore expected to test the Euro Zone’s resilience to another banking crisis. The rescue of Banco Espirito Santo

would include split of the bank into a “good bank”, renamed Novo Banco, and a “bad bank”, which will house BES’

exposures to the troubled Espirito Santo business empire as well as its subsidiary.



45. Which telecom company during July 2014 became the first in India to have a combined subscriber base of

over 300 million? – Bharti Airtel_____Note : Bharti Airtel’s subscriber base across mobile, fixed line and DTH

services crossed 300 million recently. Company’s latest 100 million subscribers were added in less than 2 years.

Bharti Airtel has been ranked as the fourth-largest mobile service provider globally and second-largest globally

outside of China. It started its operations in 1995 and had touched 100-million customer mark in 2009 and the 200

million mark in 2012.

46. S.K. Jain, who was arrested by the CBI on charges of allegedly accepting a bribe of Rs 50 lakh to enhance the

credit limit of some companies, was the Chairman and Managing Director (CMD) of which public-sector bank? –

Syndicate Bank_____Note : He was arrested on 2 August 2014 by the CBI and was suspended by the Union Govt.

on 4 August 2014. Jain was appointed CMD of state-owned Syndicate Bank in July last year for a period of five

years. He was one of the youngest CMDs of a public sector bank and was due to retire in 2020.

47. What is the name of the mission announced by the Union Govt. on 28 July 2014 envisioned to protect the

indigenous breeds of cows in the country? – Rashtriya Gokul Mission_____Note : Rashtriya Gokul Mission (RGM)

was announced as part of BJP’s poll promise to protect the cow and its progeny. To protect indigenous breeds,

such as Punganur, Vechur and Krishna Valley, the Government plans to set up ‘Gokul Grams’ (cow sanctuaries), for

which public-private partnerships as well as NGOs will be involved. The Government has kept aside Rs. 500 crore

for the mission out of the Rs. 1,200 crore allocated for cattle and dairy development during the 12th Plan. Of this

Rs. 150 crore will be spent this fiscal.

48. Which Indian online retailer, during July 2014 raised $1-billion (Rs 6,013 crore) of fresh funds in one of the

largest funding for any e-commerce company globally? – Flipkart_____Note : Flipkart is the largest online retailer

of India with around 22 million registered users and five million shipments in a month. This massive funding was

co-led by existing investors Tiger Global Management and Naspers. Singapore’s sovereign wealth fund GIC, along

with existing investors Accel Partners, DST Global, ICONIQ Capital, Morgan Stanley Investment Management and

Sofina, also participated in the fund-raising. The company will utilise the proceeds to make long-term strategic

investments in India. It is estimated that the firm has, so far, raised over $1.7 billion from investors, including the

current transaction.

49. Palghar became the 36th and the newest district of Maharashtra on 1 August 2014. It was carved out from

which district, which was India’s most populous district? – Thane_____Note : The proposal for a new, smaller and

manageable Palghar district was hanging fire for over two decades. The proposal was finally cleared by the

Maharashtra Cabinet on 13 June 2014. With a population of over 12 million, till 31 July 2014, Thane held the

distinction of being the most populated district in the country, spread across 9,600 sq.kms of hills, forests and

coastal areas.

50. Which city would host the 21st Commonwealth Games of 2018? – Gold Coast City (Australia) _____Note :

Gold Coast City is situated in the Queensland province of Australia. The city would host the 21st Commonwealth

Games from 4 to 15 April 2018. The hosting rights to Gold Coast City were awarded in November 2011. It thus

would be the fifth hosting of these games in Australia, with the earlier stagings in 1938 (Sydney), 1962 (Perth),

1982 (Brisbane), and 2006 (Melbourne).



51. What is the minimum paid-up capital limit recommended by the Reserve Bank of India (RBI) for those

entities who wish to set up payments and small banks, as announced in the draft rules released by it on 17 July

2014? – Rs. 100 crore_____ Note : According to the draft guidelines, existing authorised non-bank pre-paid

instrument issuers (PPIs), non-banking finance companies (NBFCs), corporate BCs (business correspondents),

mobile telephone companies, super market chains, companies, real sector co-operatives and public sector entities

are eligible for setting up a payments bank. The guidelines allow even banks to take equity position in a payments

bank as permitted under the Banking Regulation Act, 1949. The promoters will have to have an initial minimum

capital of at least 40%. It has prescribed a lock-in period of five years for promoters’ holding. The central bank has

sought suggestions and comments on the draft guidelines by 28 August

52. Which public-sector undertaking (PSU) on 23 July 2014 became the 17th Navratna status company? –

Container Corporation of India Limited (CONCOR) _____ Note : The Ministry of Heavy Industries and Public

Enterprises, Department of Public Enterprises, Government of India granted Navratna status to CONCOR on 23

July 2014. CONCOR is a PSU engaged in providing comprehensive logistics solutions. It has the largest network of

62 inland container depots (ICDs)/container freight stations in India. In addition to providing inland transport by

rail for containers, it has also expanded to cover management of ports, air cargo complexes and establishing cold-

chain. The Government of India (GoI) holds 61.80% stake in CONCOR (as per the shareholding pattern as on 30

June 2014).

53. Which private sector bank has agreed to buy a 15% stake in beleaguered Multi Commodity Exchange of

India Ltd (MCX), announcement of which pushed the stock value of MCX by more than 10% on 21 July 2014? –

Kotak Mahindra Bank_____ Note : The commodity market regulator, Forward Market Commission (FMC), had

ordered MCX to reduce its promoter- Financial Technologies’ (FT’s) stake from 26 to 2% in December last year

after FT was found not fit and proper to own stake in any exchange, following the NSEL crisis. However, since the

promoter repeatedly missed the deadline for reducing its stake, the regulator said it would not allow the exchange

to issue any new contracts beyond August, unless they did so. The news of Kotak Mahindra Bank’s buyout has thus

come at the right time. Prominent investor Rakesh Jhunjhunwala had also acquired nearly 2% stake in MCX for

about Rs. 66 crore during July 2014.

54. The Bank Employees Federation of India (BEFI) on 19 July 2014 released a list of 1,129 ‘wilful’ corporate loan

defaulters on the occasion of the Bank Nationalisation Day. All the companies mentioned in the list had defaulted

loans over Rs. 10 crore. What is the approximate aggregate value of these defaulters? – Rs. 54,000 crore_____

Note : The purpose of releasing the list by BEFI on the Bank Nationalisation Day was to put pressure on the

defaulters and bank managements. BEFI claimed that a similar list released by unions about five years ago helped

some recovery. This list claimed that during the year ended 2013-14, provisioning for Non Performing Assets

(NPAs) accounted for Rs. 63,591 crore out of a total operating profit of Rs. 1,27,965 crore. Lanco Mandakini Hydro

Energy, Sujana Group, Kingfisher, Progressive Construction, Viceroy Hotels, Regency Ceramics, Nav Bharat

International, S Kumars Nationwide Ltd and Deccan Chronicle have been named in the list, among others.

55. Who was during July 2014 chosen as the head of the committee formed to review the previous UPA

government’s decision to raise the price of natural gas that would have led to a cascading effect on power tariff,

urea costs and retail price of piped cooking gas? – Suresh Prabhu_____Note : Suresh Prabhu is a former Union



power minister. An indicative terms of reference for the committee includes revisiting the Natural Gas Pricing

Guidelines of 2014 (NGPG 2014) and the C. Rangarajan formula and the possibility of applying the same in its

present form or with modifications.

56. Which company on 23 July 2014 became the first Indian company to cross market capitalization value of Rs.

5 lakh crore? – Tata Consultancy Services (TCS) _____Note : Market capitalization is the value of a company’s

outstanding shares and is used to determine a company’s size. TCS’s market capitalization crossed 5 lakh crore

mark on account of appreciation in the price of TCS scrip following good financial results and record dividend

declaration by the company. State-held ONGC’s market cap of around Rs. 3.5 lakh crore is way behind that of TCS.

It is worth mentioning that TCS’ market cap is more than the combined market cap of its nearest three rivals –

Infosys (Rs 1.90 lakh crore), Wipro (Rs 1.39 lakh crore) and HCL Tech (Rs 1.07 lakh crore).

57. The Union Govt. on 19 July 2014 set up an expert committee to look into concerns raised by cost

accountants over some provisions in the new Cost Records and Audit Rules. Who is heading this committee? – R.

S. Sharma, ONGC’s former Chairman and Managing Director_____Note : Following notification of the Companies

(Cost Records and Audit) Rules 2014, the Council of the Institute of Cost Accountants of India (ICoAI) had

expressed concerns over certain provisions of the rules, particularly coverage of sectors of economy under the

rules. The other members of the committee will be R K Jain, Additional Secretary in Ministry of Health and Family

Welfare, former ICWAI (Institute of Cost and Works Accountants of India) President Chandra Wadhwa, and Aruna

Sethi, Adviser (Cost), Ministry of Corporate Affairs

58. Which country on 17 July 2014 became world’s first developed nation to repeal carbon laws that put a price

on greenhouse-gas emissions? – Australia_____Note : Australian upper Senate on 17 July voted 39-32 to scrap the

carbon tax that was introduced by centre-left Labour government Prime Minister Julia Gillard in July 2012 and was

introduced in November 2013. This tax imposed A $25 (US$23.45) tax per metric tonne of carbon dioxide on

country’s worst greenhouse gas polluters. The tax was devised to penalize hundreds the country’s biggest

polluters. Australia is one of the largest per capita greenhouse gas emitters due to its reliance on coal-burning

power stations to power homes and industry. The carbon tax and plans for an eventual emissions market

dominated Australian politics for years, gaining momentum in 2007, when former Labour Prime Minister Kevin

Rudd called climate change “the greatest moral challenge of our time” and made signature of the Kyoto climate

protocol one of his first political acts after taking office.

59. Which country became the first in the world to legalise child labour during July 2014? – Bolivia_____ Note :

While most of the world is trying to diminish child labour, Bolivia has become the first nation to legalise it from

age 10. The Congress of this Latin American country had (during early July 2014) approved a legislation legalise

child labour from the age of ten. Vice-President Alvaro Garcia signed it into law on 17 July 2014 in the absence of

President Evo Morales, who was travelling. Under the legislation, 10-year-olds will be able to work as long as they

are under parental supervision and also attend school. It sets 12 as the minimum age for a child to work under

contract. They also would have to attend school. The bill’s sponsors say lowering the minimum work age from 14

simply acknowledges a reality: Many poor families in Bolivia have no other choice than for their kids to work. The

bill offers working children safeguards.



60. Which Southeast Asian country on 20 July 2014 allowed 100% foreign ownership in banks? – The

Philippines_____Note : The order announced on 20 July allows foreign banks to own 100% stock of an existing

domestic bank or to open a fully owned subsidiary incorporated under Philippines laws. It replaces a cap of 60% on

foreign ownership and abolishes previous rules that allowed just 10 foreign banks in the country. The new law is in

preparation for the economic integration of members of the 10-country Association of South-East Asian Nations

(ASEAN) in 2015.

61. What is the definition of affordable housing loans as announced by the Reserve Bank of India (RBI) on 15

July 2014? – Rs. 50 lakh in metros and Rs. 40 lakh in non-metros, given by banks from the proceeds of long-term

bonds (of minimum seven years maturity) _____Note : This announcement was made by the RBI in a bid to boost

the housing sector. The RBI also announced that the cost of a house cannot exceed Rs. 65 lakh and Rs. 50 lakh in

the metros and non-metros, respectively, to qualify as affordable houses. There are six metros in the country:

Mumbai, Chennai, Kolkata, Delhi, Hyderabad and Bangalore. Under the current regulatory regime, loans given by

banks to individuals – up to Rs. 25 lakh in metros and Rs. 15 lakh in non-metros – for purchase/construction of a

dwelling unit, per family, are considered as affordable housing loans. These loans fall under the priority sector

lending category for banks. The RBI said that it will periodically review the definition of affordable housing, on

account of inflation. This RBI move is expected to make housing loans up to Rs. 50 lakh cheaper.

62. The fiscal deficit target for year 2015 (2014-15) has been retained at the level announced by former Finance

Minister P.Chidambaram in his interim budget. What is this level? – 4.1% of GDP (The fiscal deficit which had

touched a high of 5.7% in 2011-12, was brought down to 4.8% in 2012-13 and further to 4.5% in 2013-14)

63. In the Union Budget 2014-15, the govt. announced setting up of a commission to bring in reforms related to

spending for achieving maximum output. What is the name given to this commission? – Expenditure

Management Commission – EMC_____Note : The proposed EMC will review the allocated and operational

efficiencies of government expenditure to achieve maximum output and will give its interim report within this

financial year.

64. The revival of the Kisan Vikas Patra (KVP) was announced in the Union Budget 2014-15 on 10 July 2014. The

KVP was discontinued from November 2011 on the recommendation of which committee’s recommendations? –

The Shyamala Gopinath Committee_____Note : The Shyamala Gopinath Committee, in its report submitted on 7

June 2011, had recommended that the KVP be discontinued as it was “prone to misuse, being a bearer-line

instrument”. It said the KVP was more popular than the National Savings Certificate (NSC) because of the ease of

transfer and liquidity

65. What special feature has been proposed for currency notes in the Union Budget 2014-15 presented on 10

July 2014? – These currency notes will now also integrate Braille-features to benefit the visually-disabled people

66. What is the proposed name of an integrated Ganga Development Project for which Rs. 2037 crore were

allocated in the Union Budget 2014-15? – “Namami Ganga”

67. What is the proposed name of a new 24X7 channel for northeast region that was announced in the Union

Budget 2014-15? – “Arun Prabha”



68. Rs. 4200 crore were set for an ambitious Jal Marg Vikas Project on river Ganga in the Union Budget of 2014-

15. This project would be established between which two places on Ganga covering a distance of 1620 km? –

Allahabad (UP) and Haldia (West Bengal) .

69. What is the name given to a dedicated TV channel for farmers that was announced in the Union Budget for

2014-15 and Rs. 100 crore was set aside for its establishment? – Kisan Television (Kisan TV)

70. What GDP growth rate range for 2014-15 was estimated in the Economic Survey 2013-14, which was tabled

on 9 July 2014 in the Lok Sabha? – 5.4 to 5.9%_____Note : GDP growth slowed to below 5% for two consecutive

years, i.e. 2012-13 and 2013-14. The Economic Survey envisages a better performance during 2014-15 on account

of growth in sectors like manufacturing and mining)

71. What was the fiscal deficit for 2013-14, as disclosed in the Economic Survey 2013-14? – 4.5% of

GDP_____Note : Fiscal deficit is the difference between the government’s expenditures and its revenues. An

important factor in the increase in the Centre’s fiscal deficit after 2008-09 has been the sharp increase in subsidies

from 1.42% of GDP in 2007-08 to 2.56% of GDP in 2012-13. For 2013-14 the subsidy bill is 2.26% of GDP.

72. The panel headed by C. Rangarajan, former Chairman of PMEAC (Prime Minister’s Economic Advisory

Council), has dismissed the Suresh Tendulkar Committee report on estimating poverty. The report submitted by

Rangarajan to Planning Minister Rao Inderjit Singh recently stated that the number of poor in India was much

higher in 2011-12 at 29.5% of the population. What was the poverty figure stated for the same year in the Suresh

Tendulkar Committee report, which was severely criticized for its findings? – 21.9% _____Note : According to the

Rangarajan panel, poverty stood at 38.2% in 2009-10 and slid to 29.5% in 2011-12. This is at variance with the

Tendulkar methodology under which poverty was estimated at 29.8% in 2009-10 and declined to 21.9% in 2011-

12. This finding of C. Rangarajan committee means that 3 out of 10 persons in India are poor. The Planning

Commission in May 2012 had constituted the expert group under C. Rangarajan to review the Tendulkar

Committee methodology for estimating poverty

73. Which state has the highest number of people below poverty line according to the new definition of poverty

that is part of the new poverty estimates that have been made by a panel led by C. Rangarajan? –

Chhattisgarh_____Note : According to these estimates 47.9% of Chhattisgarh’s population is below poverty line.

Chhattisgarh thus tops the list of states with the highest poverty count. On the other had just 6.3% of Goa’s

population is below poverty line and it thus tops the list of states with the lowest poverty count. On a national

level, the C. Rangarajan committee report estimated the number of poor at 45.46 crore at 2011-12 prices, which is

much higher than the 35.47 crore estimate by the Suresh Tendulkar committee.

74. What is the operating ratio of Indian Railways as announced in the Rail Budget 2014-15? – 94 paise (This

means 94 paise put of every Re 1 is utilized. So the surplus for the railways is just 6%)

75. In how many years Indian Railways would be made paperless as proposed in the Rail Budget 2014-15? – 5

years (Facilities like Mobile alerts for wake up calls, arrival alerts and digital reservation charts at station have also

been proposed)



76. The performance ratings of banks operating in India would be put on the public domain from next year.

Which entity is rating bank services and would share this information in public domain? – Banking Codes

Standards Board of India – BCSBI _____Note : BCSBI was set up as an independent and autonomous body in 2007

by the Reserve Bank of India (RBI) to ensure that the common consumer of financial services from the banking

industry gets what he/she has been promised. BCSBI is rating banks on customer services on five parameters –

information dissemination, transparency, customer-centricity, grievance redressal system and customer feedback.

Of the 48 banks rated for customer service, only five received high ratings; 25 were rated above average; 17

average; and one below average. The ratings have been shared with the banks. The ratings were given based on a

survey conducted by BCSBI across 69 cities, involving 3,000 branches and 6,000 customers

77. State Bank of India (SBI) on 1 July 2014 launched six digital branches across the nation to serve tech-savvy

customers. One of such branches in Delhi was inaugurated on this day by Finance Minister Arun Jaitley. Other 5

such branches are located in Mumbai, Bangalore, Chennai and Ahmedabad. What is the name given to this new

range of branches which will have full digital banking capabilities? – sbiINTOUCH _____Note : These sbiINTOUCH

branches will include instant account opening with personalised debit cards, instant loan approvals for education,

car and home and remote expert advisors available via video links. The new branches will be located in malls and

will be primarily aimed at youth, who look for digital banking

78. Who was re-appointed as the Deputy Governor of the Reserve Bank of India (RBI) on 3 July 2014 by the

Union Govt.? – Harun Rashid Khan _____Note : The appointment has been made for two years with effect from 4

July 2014 or until further orders, whichever is earlier. Khan was appointed deputy governor in July 2011 for a

three-year term, which was set to expire on 3 July. As deputy governor, Khan looks after the foreign exchange

department and internal debt management, among others. The other two RBI deputy governors are Urjit Patel

and the recently appointed R. Gandhi. The government is yet to appoint a deputy governor to replace KC

Chakrabarty, who retired on 25 April 2014

79. Who headed the committee on Tendulkar Committee methodology for estimating poverty, the report of

which was submitted to Planning Commission on 1 July 2014? – C. Rangarajan _____Note : C. Rangarajan, the

former chief of Prime Minister’s Economic Advisory Council (PMEAC), submitted the report to planning minister

Rao Inderjit Singh. The Planning Commission in May 2012 had constituted the expert group under the then PMEAC

chairman C Rangarajan to review the Tendulkar Committee methodology for estimating poverty, following an

uproar over the number of poor in the country. The Planning Commission’s estimates had drawn flak in

September, 2011 when in an affidavit to the Supreme Court it was stated that households with per capita

consumption of more than Rs. 32 in urban areas and Rs. 26 in rural will not be treated as poor

80. Which public sector financial entity engaged in commercial and development banking operations is

celebrating its 50th anniversary (Golden Jubilee) during July 2014? – Industrial Development Bank of India – IDBI

_____Note : IDBI was established in 1964 under an Act of Parliament as a wholly owned subsidiary of the Reserve

Bank of India (RBI). In 1976, the ownership of IDBI was transferred to the Government of India and it was made

the principal financial institution for coordinating the activities of institutions engaged in financing, promoting and

developing industry in India. IDBI provided financial assistance, both in rupee and foreign currencies, for green-

field projects as also for expansion, modernisation and diversification purposes. During September 2004 the RBI



incorporated IDBI as a ‘scheduled bank’ under the RBI Act, 1934. Consequently, IDBI, formally entered the portals

of banking business as IDBI Ltd. from 1 October 2004. The commercial banking arm, IDBI BANK, was merged into

IDBI in 2005)

81. During June 2014 it was reported in some newspapers that the Finance Ministry is considering doubling the

exemption limit for investments by individuals in financial instruments to Rs 2 lakh in the forthcoming Annual

Budget. This is being sought so as to give a major boost to household savings. What was the savings rate of India

during 2012-13, a figure declining continuously since 2007-08? – 30% of GDP _____Note : The savings rate of the

country stood at 38% of country’s GDP during 2008. There have been demands from bankers and insurers to hike

the tax exemption limit from Rs 1 lakh per annum to encourage household savings. The Direct Taxes Code (DTC)

too had recommended that the combined ceiling for investments and expenditures be raised to Rs 1.5 lakh per

annum)

82. Which body, that during June 2014 submitted its report to the Prime Minister, has recommended that the

Planning Commission should be replaced by a reforms and solution body as it exceeds the scope of its authority by

acting as a control commission? – Independent Evaluation Office – IEO _____Note : The IEO, which was set up by

the government in November 2010, from February this year began independently assessing the effectiveness of

government programmes and institutional policies. It submitted the assessment report on Planning Commission to

Prime Minister during June 2014. IEO in its report stated that since the Planning Commission has defied attempts

to reform it to bring it in line with the needs of a modern economy and the trend of empowering the States, it is

proposed that the Planning Commission be replaced

83. Which PSU general insurance company during June 2014 introduced “insurance on wheels” concept for

faster renewal of policies? – National Insurance Company Ltd. _____Note : Under the scheme, a vehicle will be

parked at appropriate locations in a city. People can renew their policies from there instead of going to the

company office. Currently, the service has been introduced in 15-odd cities of the country.

84. The delisting process of which pharma major came under market regulator SEBI’s lens for violation of its

regulations on fraudulent and unfair trade practices and SEBI issued an order on 24 June 2014? – AstraZeneca

_____Note : SEBI said that it started investigating the matter after coming across reports that the offer-for-sale

(OFS) done by Astra Zeneca’s promoters in May 2013 was a deliberate attempt to subsequently get the share

delisted at ease. On further examination, SEBI found that Astra Zeneca’s two earlier attempts at delisting (2004

and 2010) had been unsuccessful. In its order SEBI directed that the promoters of AstraZeneca shall finally

purchase shares from public shareholders in the delisting offer only after seeking approval of the BSE and the NSE

85. Global e-commerce giant Amazon during May 2014 tied up with N.R. Narayana Murthy, the co-founder of IT

services firm Infosys by forming an e-commerce joint venture with his private investment firm. What is the name

of this investment firm of Narayana Murthy? – Catamaran Ventures _____Note : Murthy’s private investment

firm Catamaran Ventures, a Rs. 600-crore fund launched in 2010, has formed a joint venture with Amazon’s Asia

unit to create a new entity. This new entity will help small and medium businesses in India. Catamaran Ventures is

based in Bangalore



86. The Securities and Exchange Board of India (SEBI) on 17 June 2014 came out with a consultation paper on an

alternative funding source to help start-ups struggling to raise funds. Under this, funding (in small amounts) is

sought from multiple investors through a web-based platform or a social networking site for a specific project,

business venture or social cause. What is the name of this funding source which is quite popular in developed

countries? – Crowd-funding _____Note : According to SEBI’s consultation paper SEBI wants the issue fund-raising

capped at Rs. 10 crore a year for each start-up. Only national stock exchanges and SEBI-registered depositories are

eligible to set up a crowd-funding platform

87. The Reserve Bank of India (RBI) on 17 June 2014 asked banks to make sector-wise disclosure of their

advances from 2014-15 onwards with a view to encourage them to actively manage exposure to various

segments. This direction was based on which committee’s recommendation on this subject? – Dr. Nachiket Mor

Committee _____Note : The Committee on Comprehensive Financial Services for Small Businesses and Low

Income Households under chairmanship of Dr. Nachiket Mor had recommended that banks actively manage their

exposures to various sectors, including priority sectors

88. India’s capital market regulator Securities and Exchange Board of India (SEBI) on 19 June 2014 announced a

slew of reforms that included a proposal to hike public holding in all public sector undertakings (PSUs), new norms

for research analysts and ESOPs given by listed firms. What is the minimum public shareholding for PSUs as fixed

by the SEBI? – 25% or Rs. 400 crore whichever is lower _____Note : Currently, PSUs have to maintain 10% of

minimum public shareholding, while private companies are required to maintain 25%. Now, the PSUs will be given

three years to achieve minimum public shareholding of 25%)

89. Which bank is organising ‘The Banking and Economics Conclave 2014′ which was inaugurated by Reserve

Bank of India (RBI) Governor Raghuram Rajan in Mumbai on 17 June 2014? – State Bank of India – SBI _____Note :

This conclave is a national level banking conclave that has been organized for the first time. The conclave is on the

lines of ‘Bancon’, an event organised by Indian Bank’s Association (IBA) each year. It is also the first time that a

commercial bank has organised an event of this magnitude)

90. The Tax Administration Reform Commission (TARC) headed by Parthasarathi Shome in its first report

endorsed the recommendations given by the 1992 committee on tax reforms for abolishing the post of Revenue

Secretary in the Ministry of Finance. Who had headed that 1992 committee on tax reforms which had advocated

path-breaking tax reforms for the country – Raja J Chelliah _____Note : Raja J Chelliah was instrumental in

bringing about the early reforms to the direct taxation structure. He served as chairman of Tax Reforms

Committee of Union govt. between 1991 and 1993 and he was often called ‘The Father of Tax Reforms’)

91. The Delhi Government on 17 June 2014 announced that the national capital has become the first ‘kerosene-

free city’ in the country. Which scheme was implemented in the city which enabled it to do away with the sale of

non-subsidised kerosene in the city – ‘Delhi: A Kerosene-Free City Scheme, 2012’ _____Note : The scheme was

launched in 2012 in collaboration with three oil marketing companies and the Union Ministry of Petroleum and

Natural Gas for which Delhi Government had incurred an expenditure of Rs. 62 crores. With delhi being kerosene-

free, India is expected to save upto Rs. 200 crore annually



92. The Wholesale Price Index (WPI) for the month of May 2014 touched a 5-month high as higher food prices

and fuel costs fuelled price rise. What was the WPI for May 2014 which was released on 16 June 2014? – 6.01%

_____Note : The WPI for April 2014 was 5.20%. As per the data released by the government, core inflation was at

3.8% as against 3.4% last month. Primary article inflation stood at 8.58% as against 7.06% last month. Food article

inflation was at 9.50% as against 8.64% last month while non-food article index was up at 1.5%)

93. AirAsia India, the Indian arm of the Malaysian no-frills airline headed by Tony Fernandes, on 12 June 2014

became the fifth budget carrier in India as its maiden flight took off on the day. This first flight of AirAsia was

between which two destinations? – From Bangalore to Goa _____Note : AirAsia became the fifth budget (no-frills)

airline in India after IndiGo, JetLite, SpiceJet and GoAir. AirAsia India is a three-way venture between the Malaysia-

based low-cost airline, India’s Tata Group and investment firm Telestra Tradeplace)

94. The shareholders of Reliance Industries Limited (RIL) got an opportunity to cast their votes through e-voting

system at company’s 40th Annual General Meeting (AGM) held on 18 June 2014 at Mumbai. RIL shareholders cast

their votes by touching the touch-pads of tablet computers that were brought by volunteers individually to them.

However, the Ministry of Corporate Affairs had deferred mandatory e-voting for shareholders till which date? – 31

December 2014 _____Note : Thus e-voting for shareholders would become mandatory for companies from 1

January 2015. An advantage of e-voting is that under it one share has one vote while under the earlier system one

person has one vote. In the traditional voting at company AGM’s hands were shown or lifted in support of a

proposal and it was not more than a mere formality

95. Who was during June 2014 appointed the arbitrator from the Union Finance Ministry in the Rs.20,000-crore

tax dispute case with U.K. telecom major Vodafone? – Justice (Retd.) R. C. Lahoti, Former Chief Justice of India

_____Note : The government’s decision was in response to an arbitration notice served by Vodafone International

Holdings B.V. in April 2014 under the Bilateral Investment Protection and Promotion Agreement between India

and the Netherlands for resolving the dispute. The Union Cabinet had approved the conciliation with Vodafone in

June last year in a bid to resolve the capital gains tax dispute related to its 2007 acquisition of Hutchison

Whampoa’s stake in Hutchison Essar)

















banking and financial awareness => june – september 2014

Education

government of india

united india insurance

new india insurance

united bank of india

law ministry of india

reserve bank of india

union government

thecentral government