BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Upto Rs. 5 lakh only
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No
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Upto Rs. 8 lakh only
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Upto Rs. 2 lakh only
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Detailed explanation-1: -Yes, loss making banks can make donations upto Rs. 5 lakhs only in a financial year.
Detailed explanation-2: -Each depositor in a bank is insured upto a maximum of ₹ 5, 00, 000 (Rupees Five Lakhs) for both principal and interest amount held by him in the same right and same capacity as on the date of liquidation/cancellation of bank’s licence or the date on which the scheme of amalgamation/merger/reconstruction comes into force.
Detailed explanation-3: -Bank may make Donations during a financial year aggregating up to one percent of published profit of the Bank for the previous year.
Detailed explanation-4: -A legal lending limit is the most a bank or thrift can lend to a single borrower. The legal limit for national banks is 15% of the bank’s capital. If the loan is secured by readily marketable securities, the limit is raised by 10%, bringing the total to 25%.
Detailed explanation-5: -As we say above, the Financial Services Compensation Scheme (FSCS) protects up to £85, 000 per person, per financial institution.