1. Banks obtain photograph at the time of opening of the account with a view to:
a) Avoid benami accounts
b) Verify the identity of the customer
c) Verify with police records
d) a & b
e) a to c
2. Banks are required to submit CTR (Cash Transaction Report) to ___ within ___ of succeeding month.
a) FIU, 30 days
b) FIU, 15 days
c) FIU, 7 days
d) RBI, 7 days
e) RBI, 15 days
3. Premium payable on deposit insurance on every Rs.100 per annum is
a) 10 paise
b) 5 paise
c) 25 paise
d) 50 paise
e) None
4. Which of the following can’t be a nominee?
a) Illiterate Person
b) Minor
c) NRI
d) HUF
e) None
5. In case of dishonor of cheques on financial grounds, the holder is required to issue notice to the drawer
within ___ days to claim remedy under section 138 of NI Act
a) 7 Days
b) 30 Days
c) One Year
d) Three Years
e) None
6. National Payment Corporation of India (NPCI) has set up payment network to enable the member
banks to issue Domestic Payment Cards with a brand ___
a) Visa Card
b) Master Card
c) Prepaid Card
d) RuPay
e) Travel Card
7. Permanent Account Number (PAN) is mandatory for
a) Bank transactions (cash) of Rs. 50000/- & above
b) Purchase and sale of shares/ debentures/bonds of Rs. 50000/- & above
c) Purchase and sale of immovable property where the value of the property is Rs. 5 lakh & above
d) a & c
e) All
8. High Debt Service Coverage Ratio (DSCR) indicates
a) Unable to meet the installment obligations
b) Able to meet payment of installments comfortably
c) Liquidity problem
d) a & c
e) None
9. Which of the following statement is not true with regard to Capital Gains Deposit Scheme?
a) Income Tax Assess who are eligible for exemption under section 54 of the IT Act are alone can open account with Banks
b) Accounts can be opened under Savings, Fixed and Term Deposits
c) Cheque book can be issued to eligible accounts.
d) No lien or deposit loan is allowed against such deposits
e) None
10. Which of the following statement is not correct with regard to Tax Saver Scheme of Banks?
a) Tax exemption is available for the deposit amount under section 80C of IT Act
b) Period of deposit is allowed up to 5 Years
c) TDS is applicable, if interest payment is above Rs.10000/- in a financial year
d) Maximum amount of deposit allowed is Rs. 5 lakhs
e) c & d
11. Financial statements includes
a) Balance Sheet
b) P & L
c) Cash & Funds Flow
d) a & b
e) a, b & c
12. Banks are permitted to take over borrowal accounts from other Banks & Financial institutions provided
a) Account should be Standard Asset with positive net worth
b) Copy of the borrowal account for preceding 12 months is to be obtained
c) P & C report is to be obtained from other bank before disbursement
d) Branch to take approval from next sanctioning authority
e) All of the above
13. RBI extending incentives to Banks for the following services
a) Adjudication of Mutilated Bank Notes
b) Exchange of Soiled Notes
c) Distribution of Coins over the counter
d) Establishment of Coin vending Machines
e) All of the above
14. Which agency is enabling the transfer of subsidies directly to beneficiary accounts through Aadhaar Enabled Payment Bridge (APB)?
a) RBI
b) SEBI
c) IDRBT
d) NPCI
e) SBI
15. Call Money Market interest are linked to
a) Bank Rate
b) Repo Rate
c) Reverse Repo Rate
d) Market forces
e) None
16. Transaction Password relates to
a) Core Banking
b) ATM operations
c) Internet Banking
d) Tele banking
e) None
17. Nomination in respect of the following is to be witnessed by two persons.
a) All deposit accounts
b) Deposit accounts where the
nominee is a minor
c) Physically challenged accounts
d) Thumb impression accounts (illiterate)
e) None
18. When the contents of the Negotiable Instrument are modified by the drawer, it is treated as
a) Forgery
b) Fraud
c) Material alteration
d) suppression of facts
e) None
19. Prepayment charges are exempted for
a) Housing Loans
b) Education Loans
c) Agr. Loans
d) Corporate Loans
e) a, b & c
20. IFSC code consists of ___ Digits.
a) 9
b) 10
c) 11
d) 15
e) None
21. One Bank account per family is mandatory to avail
a) Credit facility from bank
b) Direct Benefit Transfer benefit (subsidy)
c) Interest subvention – Housing Loan
d) either a or b
e) none
22. What is the time limit to furnish the requested information under Right to Information Act (RTI) and what is the penalty for noncompliance of the said norm?
a) 30 days & Rs. 100 per day
b) 60 days & Rs. 100 per day
c) 30 days & Rs. 250 per day maximum of Rs. 25000/-
d) 60 days & Rs. 250 per day
e) None
23. The documents to be insisted from a NRI for opening an account is
a) Copies of Passport and VISA
b) Local and Overseas addresses
c) Compliance of KYC norms
d) Latest Passport size photographs
e) All of the above
24. Minimum and Maximum period of Certificate of Deposits
a) 15 days & 1 year
b) 30 days & 1 year
c) 7 days & 1 year
d) 7 days & no limit
e) None
25. Loans not exempted from Base Rate Purview?
a) Consortium Advance
b) Loans against deposits
c) Export Credit
d) Loans to staff members
e) None
26. Visually challenged persons are allowed to avail the following banking facilities?
a) Cheque Book
b) Debit Card
c) ATM Card
d) Locker
e) All
27. Housing Loan up to ___ is treated as Priority Sector.
a) 10 lakh
b) 15 lakh
c) 25 lakh in Metro with population above 10 lakh to 15 lakh in other centers
d) 25 lakh at all places
e) None
28. Nominee can exercise his right
a) During the tenure of deposit
b) On maturity of deposit
c) Any time since he will be treated as joint depositor
d) He has no right on deposit since it is in the name of the depositor
e) On the death of the depositor
29. Balances under Cash Reserve Ratio (CRR) earn interest @___
a) 3% p.a.
b) Applicable SB Interest Rate
c) 5% p.a.
d) No interest
e) None
30. Banks are allowed to accept deposits under Capital Gains Scheme in ___
a) Savings
b) Fixed
c) Current
d) a & b
e) Any scheme
31. During March 2015, a Reserve Bank of India (RBI) committee had recommended introduction of PSLCs to enable banks "to meet their PSL requirements even while leveraging their comparative advantage in lending". What does the PSLC stands for?
a) Priority Sector Lending Certificates
b) Priority sector Loan Certificates
c) Primary and Secondary Sector Certificates
d) Public Sector Lending Certificates
e) None of the above
32. Zero Coupon Bonds refers to
a) Bond issued at face value
b) Bond issued with face value & interest
c) Bond issued at discount from its face value with interest
d) Bond issued at discount from its face value without interest
e) None
33. ATMs that are owned and managed by non-banking entities are called as ___
a) Onsite ATM
b) Offsite ATM
c) Third Party ATM
d) Red label ATM
e) White label ATM
34. For transfer of funds through NEFT (National Electronic Fund Transfer) and minimum and maximum amount that can be transferred are
a) Rs.1,000 and maximum Rs. 5 lakhs.
b) Rs. 1000 and maximum no limit
c)Rs. 5,000 and maximum 1 lakh
d) No minimum & maximum amount
e) None
35. Cash kept in the currency chest is owned by
a) Currency Chest Branch Bank
b) Central Government
c) Reserve Bank of India
d) State Bank of India
e) None of the above
36. Bank can't proceed against the borrower under SARFAESI Act where
a) Security is agri land
b) Liability is less than 1 lakh
c) Liability is less than 20% of the principal
d) Pledge of movables
e) All of the above
37. The minimum capital required to start a new private sector bank is?
a) Rs. 100 crore
b) Rs.200 crore
c) Rs. 300 crore
d) Rs.400 crore
e) Rs. 500 crore
38. RBI injects liquidity through
a) Increase Bank Rate
b) Reduction of Repo Rate
c) Reduction of Reverse Repo
d) Increase CRR
e) Increase SLR
39. A customer requested to include his wife and daughter as nominees after one year of opening of the account. Will it be accepted?
a) It can be accepted since the nominees are the family members of the depositor
b) Cannot be considered since the request is not received at the time of opening of account
c) Can be considered with 50% share each
d) Nomination should be made only in favor of single name. Hence can’t be considered
e) None of the above
40. What is the relationship between the Bank and Overdraft Customer where the account is showing credit balance?
a) Creditor & Debtor
b) Principle & Agent
c) Trustee & Beneficiary
d) Debtor & Creditor
e) None of the above
ANSWERS:
1) d; 2) b; 3) a; 4) d; 5) b; 6) d; 7) e; 8) b; 9) c; 10) d;
11) e; 12) e; 13) e; 14) d; 15) d; 16) c; 17) d; 18) c; 19) e; 20) c;
21) b; 22) a; 23) e; 24) c; 25) a; 26) b; 27) c; 28) e; 29) d; 30) d;
31) a; 32) d; 33) e; 34) c; 35) c; 36) b; 37) e; 38) b; 39) d; 40) d.
a) Avoid benami accounts
b) Verify the identity of the customer
c) Verify with police records
d) a & b
e) a to c
2. Banks are required to submit CTR (Cash Transaction Report) to ___ within ___ of succeeding month.
a) FIU, 30 days
b) FIU, 15 days
c) FIU, 7 days
d) RBI, 7 days
e) RBI, 15 days
3. Premium payable on deposit insurance on every Rs.100 per annum is
a) 10 paise
b) 5 paise
c) 25 paise
d) 50 paise
e) None
4. Which of the following can’t be a nominee?
a) Illiterate Person
b) Minor
c) NRI
d) HUF
e) None
5. In case of dishonor of cheques on financial grounds, the holder is required to issue notice to the drawer
within ___ days to claim remedy under section 138 of NI Act
a) 7 Days
b) 30 Days
c) One Year
d) Three Years
e) None
6. National Payment Corporation of India (NPCI) has set up payment network to enable the member
banks to issue Domestic Payment Cards with a brand ___
a) Visa Card
b) Master Card
c) Prepaid Card
d) RuPay
e) Travel Card
7. Permanent Account Number (PAN) is mandatory for
a) Bank transactions (cash) of Rs. 50000/- & above
b) Purchase and sale of shares/ debentures/bonds of Rs. 50000/- & above
c) Purchase and sale of immovable property where the value of the property is Rs. 5 lakh & above
d) a & c
e) All
8. High Debt Service Coverage Ratio (DSCR) indicates
a) Unable to meet the installment obligations
b) Able to meet payment of installments comfortably
c) Liquidity problem
d) a & c
e) None
9. Which of the following statement is not true with regard to Capital Gains Deposit Scheme?
a) Income Tax Assess who are eligible for exemption under section 54 of the IT Act are alone can open account with Banks
b) Accounts can be opened under Savings, Fixed and Term Deposits
c) Cheque book can be issued to eligible accounts.
d) No lien or deposit loan is allowed against such deposits
e) None
10. Which of the following statement is not correct with regard to Tax Saver Scheme of Banks?
a) Tax exemption is available for the deposit amount under section 80C of IT Act
b) Period of deposit is allowed up to 5 Years
c) TDS is applicable, if interest payment is above Rs.10000/- in a financial year
d) Maximum amount of deposit allowed is Rs. 5 lakhs
e) c & d
11. Financial statements includes
a) Balance Sheet
b) P & L
c) Cash & Funds Flow
d) a & b
e) a, b & c
12. Banks are permitted to take over borrowal accounts from other Banks & Financial institutions provided
a) Account should be Standard Asset with positive net worth
b) Copy of the borrowal account for preceding 12 months is to be obtained
c) P & C report is to be obtained from other bank before disbursement
d) Branch to take approval from next sanctioning authority
e) All of the above
13. RBI extending incentives to Banks for the following services
a) Adjudication of Mutilated Bank Notes
b) Exchange of Soiled Notes
c) Distribution of Coins over the counter
d) Establishment of Coin vending Machines
e) All of the above
14. Which agency is enabling the transfer of subsidies directly to beneficiary accounts through Aadhaar Enabled Payment Bridge (APB)?
a) RBI
b) SEBI
c) IDRBT
d) NPCI
e) SBI
15. Call Money Market interest are linked to
a) Bank Rate
b) Repo Rate
c) Reverse Repo Rate
d) Market forces
e) None
16. Transaction Password relates to
a) Core Banking
b) ATM operations
c) Internet Banking
d) Tele banking
e) None
17. Nomination in respect of the following is to be witnessed by two persons.
a) All deposit accounts
b) Deposit accounts where the
nominee is a minor
c) Physically challenged accounts
d) Thumb impression accounts (illiterate)
e) None
18. When the contents of the Negotiable Instrument are modified by the drawer, it is treated as
a) Forgery
b) Fraud
c) Material alteration
d) suppression of facts
e) None
19. Prepayment charges are exempted for
a) Housing Loans
b) Education Loans
c) Agr. Loans
d) Corporate Loans
e) a, b & c
20. IFSC code consists of ___ Digits.
a) 9
b) 10
c) 11
d) 15
e) None
21. One Bank account per family is mandatory to avail
a) Credit facility from bank
b) Direct Benefit Transfer benefit (subsidy)
c) Interest subvention – Housing Loan
d) either a or b
e) none
22. What is the time limit to furnish the requested information under Right to Information Act (RTI) and what is the penalty for noncompliance of the said norm?
a) 30 days & Rs. 100 per day
b) 60 days & Rs. 100 per day
c) 30 days & Rs. 250 per day maximum of Rs. 25000/-
d) 60 days & Rs. 250 per day
e) None
23. The documents to be insisted from a NRI for opening an account is
a) Copies of Passport and VISA
b) Local and Overseas addresses
c) Compliance of KYC norms
d) Latest Passport size photographs
e) All of the above
24. Minimum and Maximum period of Certificate of Deposits
a) 15 days & 1 year
b) 30 days & 1 year
c) 7 days & 1 year
d) 7 days & no limit
e) None
25. Loans not exempted from Base Rate Purview?
a) Consortium Advance
b) Loans against deposits
c) Export Credit
d) Loans to staff members
e) None
26. Visually challenged persons are allowed to avail the following banking facilities?
a) Cheque Book
b) Debit Card
c) ATM Card
d) Locker
e) All
27. Housing Loan up to ___ is treated as Priority Sector.
a) 10 lakh
b) 15 lakh
c) 25 lakh in Metro with population above 10 lakh to 15 lakh in other centers
d) 25 lakh at all places
e) None
28. Nominee can exercise his right
a) During the tenure of deposit
b) On maturity of deposit
c) Any time since he will be treated as joint depositor
d) He has no right on deposit since it is in the name of the depositor
e) On the death of the depositor
29. Balances under Cash Reserve Ratio (CRR) earn interest @___
a) 3% p.a.
b) Applicable SB Interest Rate
c) 5% p.a.
d) No interest
e) None
30. Banks are allowed to accept deposits under Capital Gains Scheme in ___
a) Savings
b) Fixed
c) Current
d) a & b
e) Any scheme
31. During March 2015, a Reserve Bank of India (RBI) committee had recommended introduction of PSLCs to enable banks "to meet their PSL requirements even while leveraging their comparative advantage in lending". What does the PSLC stands for?
a) Priority Sector Lending Certificates
b) Priority sector Loan Certificates
c) Primary and Secondary Sector Certificates
d) Public Sector Lending Certificates
e) None of the above
32. Zero Coupon Bonds refers to
a) Bond issued at face value
b) Bond issued with face value & interest
c) Bond issued at discount from its face value with interest
d) Bond issued at discount from its face value without interest
e) None
33. ATMs that are owned and managed by non-banking entities are called as ___
a) Onsite ATM
b) Offsite ATM
c) Third Party ATM
d) Red label ATM
e) White label ATM
34. For transfer of funds through NEFT (National Electronic Fund Transfer) and minimum and maximum amount that can be transferred are
a) Rs.1,000 and maximum Rs. 5 lakhs.
b) Rs. 1000 and maximum no limit
c)Rs. 5,000 and maximum 1 lakh
d) No minimum & maximum amount
e) None
35. Cash kept in the currency chest is owned by
a) Currency Chest Branch Bank
b) Central Government
c) Reserve Bank of India
d) State Bank of India
e) None of the above
36. Bank can't proceed against the borrower under SARFAESI Act where
a) Security is agri land
b) Liability is less than 1 lakh
c) Liability is less than 20% of the principal
d) Pledge of movables
e) All of the above
37. The minimum capital required to start a new private sector bank is?
a) Rs. 100 crore
b) Rs.200 crore
c) Rs. 300 crore
d) Rs.400 crore
e) Rs. 500 crore
38. RBI injects liquidity through
a) Increase Bank Rate
b) Reduction of Repo Rate
c) Reduction of Reverse Repo
d) Increase CRR
e) Increase SLR
39. A customer requested to include his wife and daughter as nominees after one year of opening of the account. Will it be accepted?
a) It can be accepted since the nominees are the family members of the depositor
b) Cannot be considered since the request is not received at the time of opening of account
c) Can be considered with 50% share each
d) Nomination should be made only in favor of single name. Hence can’t be considered
e) None of the above
40. What is the relationship between the Bank and Overdraft Customer where the account is showing credit balance?
a) Creditor & Debtor
b) Principle & Agent
c) Trustee & Beneficiary
d) Debtor & Creditor
e) None of the above
ANSWERS:
1) d; 2) b; 3) a; 4) d; 5) b; 6) d; 7) e; 8) b; 9) c; 10) d;
11) e; 12) e; 13) e; 14) d; 15) d; 16) c; 17) d; 18) c; 19) e; 20) c;
21) b; 22) a; 23) e; 24) c; 25) a; 26) b; 27) c; 28) e; 29) d; 30) d;
31) a; 32) d; 33) e; 34) c; 35) c; 36) b; 37) e; 38) b; 39) d; 40) d.
