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🇮🇳 UGC NET Commerce · flashcards
UGC NET Commerce Banking and Financial Institutions Flashcards
51 question-and-answer cards covering Banking and Financial Institutions as it is examined in UGC NET Commerce. 24 of them are printed below, taken from across the deck — no signup, no paywall on the preview.
24 sample cards from the Banking and Financial Institutions deck
Sampled from the end of the deck, so these are different cards from the ones shown on the syllabus page.
What is the difference between the primary market and the secondary market?
The primary market is where new securities are issued for the first time to raise capital (e.g., IPOs). The secondary market is where existing/already-issued securities are traded among investors (e.g., stock exchanges).
What is a Treasury Bill (T-Bill)?
A T-Bill is a short-term debt instrument issued by the Government of India through the RBI at a discount to face value, with maturities of 91, 182, or 364 days, and redeemed at par; it carries no interest coupon.
What is Commercial Paper (CP)?
CP is an unsecured, short-term promissory note issued by creditworthy corporates, primary dealers, and financial institutions to raise short-term funds, issued at a discount to face value with maturity from 7 days up to one year.
What is a Certificate of Deposit (CD)?
A CD is a negotiable, unsecured money market instrument issued by banks and select financial institutions against deposits, in dematerialised form, for short-term maturities (7 days to 1 year for banks).
What is the difference between development financial institutions (DFIs) and investment institutions?
DFIs (e.g., IFCI, IDBI, NABARD, SIDBI, EXIM Bank) provide long-term finance for industrial and infrastructure development. Investment institutions (e.g., LIC, UTI, GIC, mutual funds) mobilise public savings and invest in securities.
What is NABARD and what is its primary role?
The National Bank for Agriculture and Rural Development, established in 1982, is the apex development bank for refinancing and regulating institutions providing agricultural and rural credit, including RRBs and cooperative banks.
What is SIDBI?
The Small Industries Development Bank of India, established in 1990, is the principal financial institution for promotion, financing, and development of the micro, small, and medium enterprise (MSME) sector.
What is the role of EXIM Bank of India?
The Export-Import Bank of India, established in 1982, is the apex institution for financing, facilitating, and promoting India's foreign trade through export credit and lines of credit.
Who regulates the securities market in India and under which Act?
The Securities and Exchange Board of India (SEBI), established statutorily in 1992 under the SEBI Act, 1992, regulates the securities (capital) market and protects investor interests.
Which body regulates the insurance sector in India?
The Insurance Regulatory and Development Authority of India (IRDAI), established under the IRDA Act, 1999, regulates and develops the insurance industry.
Which authority regulates the pension sector in India?
The Pension Fund Regulatory and Development Authority (PFRDA), established statutorily under the PFRDA Act, 2013, regulates the National Pension System (NPS) and pension funds.
What does the Financial Stability and Development Council (FSDC) do?
The FSDC, set up in 2010 and chaired by the Union Finance Minister, is an apex body that strengthens and institutionalises the mechanism for maintaining financial stability, financial sector development, and inter-regulatory coordination.
Which four main financial regulators oversee India's financial system and their domains?
RBI (banking and monetary policy), SEBI (securities market), IRDAI (insurance), and PFRDA (pensions). RBI also regulates NBFCs and payment systems.
What is financial inclusion?
Financial inclusion is the process of ensuring access to appropriate financial products and services (banking, credit, insurance, payments) at affordable cost to all sections of society, especially the weaker and low-income groups.
What is the Pradhan Mantri Jan Dhan Yojana (PMJDY)?
PMJDY, launched in 2014, is the national mission for financial inclusion providing universal access to basic no-frills savings bank accounts, RuPay debit cards, accident and life insurance cover, and overdraft facilities.
What is a Basic Savings Bank Deposit Account (BSBDA)?
A BSBDA is a no-frills account offered with zero minimum balance, free RuPay debit card, and basic banking facilities, designed to promote financial inclusion among the unbanked.
What is the role of Business Correspondents (BCs) in financial inclusion?
Business Correspondents are retail agents engaged by banks to provide banking services (account opening, deposits, withdrawals, remittances) at locations other than bank branches, extending banking reach to remote and unbanked areas.
What is Priority Sector Lending (PSL)?
PSL is a mandate requiring banks to allocate a portion of credit (40% of Adjusted Net Bank Credit for domestic commercial banks) to specified sectors such as agriculture, MSMEs, education, housing, and weaker sections.
What is the Unified Payments Interface (UPI)?
UPI is a real-time, instant payment system developed by the National Payments Corporation of India (NPCI) that enables inter-bank fund transfers via mobile devices using a Virtual Payment Address (VPA), without sharing bank details.
Differentiate between RTGS and NEFT.
RTGS (Real Time Gross Settlement) settles transactions individually and in real time, used for high-value transfers (minimum Rs 2 lakh). NEFT (National Electronic Funds Transfer) settles on a net basis in batches with no minimum or maximum limit. Both now operate 24x7.
What is the difference between life insurance and general insurance?
Life insurance covers the risk of death or survival of a person and is long-term, treated as a contract of both protection and investment. General (non-life) insurance covers risks to property, health, and liabilities (fire, marine, motor, health) and is typically annual contracts of indemnity.
What is the principle of utmost good faith (uberrimae fidei) in insurance?
It is a fundamental insurance principle requiring both the insurer and the insured to disclose all material facts honestly and completely; concealment or misrepresentation can render the contract void.
What is the principle of indemnity in insurance?
The principle of indemnity ensures the insured is compensated only for the actual loss suffered, restoring them to the same financial position as before the loss, so they cannot profit from insurance. It applies to general insurance, not life insurance.
What is reinsurance?
Reinsurance is the practice whereby an insurer transfers a part of its risk portfolio to another insurer (the reinsurer) to reduce its exposure to large claims and spread risk. The General Insurance Corporation (GIC Re) is India's national reinsurer.
What this deck covers
The Banking and Financial Institutions deck follows the UGC NET Commerce Banking and Financial Institutions syllabus — 1 chapters and 9 topics — so questions land on material that is genuinely examinable rather than trivia around it. That works out to roughly 51.0 cards per chapter.
Answers are written to be recallable, not just readable — averaging about 216 characters, which is long enough to carry the reasoning and short enough to say out loud.
A deck like this earns its keep on the second and third pass. Read the syllabus first so you know the shape of the subject, then use the cards to find the specific facts that have not stuck.
Banking and Financial Institutions flashcards FAQ
How many Banking and Financial Institutions flashcards are in this UGC NET Commerce deck?
51 cards. This page previews 24 of them, sampled evenly across the deck so you can judge the difficulty before installing anything.
Are these UGC NET Commerce flashcards free?
Yes. The preview here is free to read with no signup, and the full 51-card deck is free inside the Examius app.
What do the Banking and Financial Institutions cards cover?
They follow the UGC NET Commerce Banking and Financial Institutions syllabus — 1 chapters and 9 topics — so the questions track what is actually examinable.
How should I use these flashcards?
Read the syllabus first so you know the shape of the subject, then drill the deck. Examius schedules each card with spaced repetition, so cards you keep missing come back sooner and ones you know drift further apart.