Retail, Wholesale and UNIVERSAL BANKING
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for VIDEO LECTURES OF ASHISH SIR (FOR ALL SCALES) — Bank Promotions.
One-liners from this chapter
Free sample — 8 of 66 rapid-fire Q&A cards.
What is the primary characteristic that distinguishes retail banking from wholesale banking?
Retail banking serves individual consumers and small businesses with standardised, high-volume, low-value products, whereas wholesale banking caters to large corporates, institutions, and governments with customised, low-volume, high-value transactions.
What is the minimum capital requirement for setting up a new Universal Bank in India as per RBI?
Rs. 1000 crore minimum paid-up capital required.
Which RBI committee recommended the introduction of Universal Banks in India?
The Narasimham Committee (1991) recommended moving towards universal banking in India to enable banks to offer a full spectrum of financial services under one roof.
What is 'retail banking' also commonly referred to as in banking terminology?
Consumer banking or personal banking for individuals.
What does the term 'Universal Banking' mean in the Indian banking context?
Universal banking refers to a banking model where a single institution provides both commercial banking services (deposits, loans) and investment banking/insurance services, acting as a financial supermarket for all customer needs.
Which committee of RBI specifically recommended conversion of DFIs into Universal Banks?
The Khan Committee (1997) recommended DFI conversion.
Which Indian financial institution was the first to convert into a Universal Bank?
ICICI Ltd and IDBI Ltd were the pioneering development finance institutions (DFIs) that converted into universal banks in India, with ICICI Bank emerging in 2002 after a reverse merger.
What is the maximum permissible shareholding by a promoter in a Universal Bank after 15 years?
Promoter shareholding must be diluted to 15 percent.
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