BANKING AWARENESS PRACTICE MCQs FOR BANK EXAMS

1. Fiscal Policy is composed of several parts which include?
a) Tax Policy and Expenditure Policy
b) Investment or Disinvestment Strategies
c) Debt or Surplus Management
d) All of the Above
e) None of the above

2. Rural Infrastructure Development fund (RIDF) is financed by?
a) Selected group of public Sector Banks
b) Ministry of Rural Development
c) Reserve Bank of India
d) NABARD
e) None of the above

3. The bank conducts Government business
as an agent of ?
a) Union and state Government
b) Reserve Bank of India
c) State Bank of India
d) SIDBI
e) None of the above

4. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form?
a) Reserve Bank of India
b) Imperial Bank of India
c) Bank of India
d) Union Bank of India
e) None of the above

5. India's largest commercial bank is?
a) Central Bank of India
b) State Bank of India
c) Indian overseas bank
d) Bank of India
e) Punjab National Bank

6. Interest on the savings bank accounts is compounded?
a) Daily
b) Yearly
c) Quarterly
d) Half-yearly
e) All of the above

7. Rates of Interest on deposits are determined by?
a) IBA
b) Ministry of Finance
c) The Bank Itself
d) Government of India
e) Other than the given

8. Current account becomes dormant when there are no withdrawals for the last?
a) 3 months
b) 6 months
c) 24 months
d) 12 months
e) None of the above

9. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a ‘banking company’ means any company which
a) accepts deposits from the public
b) undertakes lending of money
c) transacts the business of banking in
d) All of the above
e) None of the above

10.Which of the following is not a negotiable instrument ?
a) Cheque
b) Pay order
c) Bill of Exchange
d) All of the above are negotiable instruments
e) Other than the given

11. “Currency Swap” is an instrument to manage?
a) Currency Risk
b) Interest Rate Risk
c) Currency and Interest Rate Risk
d) Cash Flows in different currencies
e) All of the above

12. “Plastic Money” denotes?
a) Bearer cheque
b) Credit card
c) Demand Draft
d) Traveller’s cheque
e) Gift cheque

13. National Income of India is estimated by?
a) Central Estimates Survey Committee
b) National Sample Survey Committee
c) Central Statistical Organization
d) Finance Ministry
e) Other than the given

14. Nomination facility is available to?
a) Individuals/Sole Proprietorship accounts/Private Limited Companies
b) Individuals/Sole Proprietorship Accounts/Partnership Accounts
c) Individuals/Sole Proprietorship Accounts
d) All of the above
e) Other than the given

15. Off Shore Banking Unit is?
a) a unit which is situated in Foreign country
b) a unit which is situated in Special Economic Zones and deals in foreign currency only
c) a unit which is actively participating in lending foreign currency loans and in joint ventures
d) All of the above
e) None of the above

16. If a currency note is demonetized, it takes away the ....... of that currency.
a) legal tender character
b) exchange rate
c) value
d) All of the above
e) Other than the given

17. Currency Note containing political slogan is not a legal tender as per:
a) Legal Tender (Inscribed Notes) Act, 1964
b) Negotiable Instruments Act, 1881
c) Reserve Bank of India Act
d) All of the above
e) Other than the given

18. Deposits under NRE/FCNB accounts are linked to?
a) Base Rate
b) SIBOR
c) LIBOR
d) All of the above
e) Other than the given

19. Electronic Fund Transfer scheme of RBI has been renamed as?
a) Clearing
b) Core Banking Solutions
c) Real Time Gross Settlement
d) National Electronic Fund Transfer
e) All of the above

20. Which private bank is recently merged with Kotak Mahindra Bank (KMB)?
a) ING Vysya Bank
b) KarurVysya Bank
c) Lakshmi Vilas Bank
d) Jammu and Kashmir Bank
e) Other than the given

21. Which one of the following rates is not decided by RBI?
a) Repo rate
b) Base rate
c) Bank rate
d) Marginal Standing Facility (MSF) rate
e) Other than the given

22. Which of the following bank is generally not considered as Commercial bank?
a) Public Sector Bank
b) Private Sector Bank
c) Development Bank
d) Foreign Bank
e) Other than the given

23. Which two private sector banks have got license from RBI in 2014?
a) Bandhan and Yes Bank
b) Yes Bank and IDFC
c) IDFC Bank and Bandhan Bank
d) Axis Bank and ICICI
e) Other than the given

24. Which bank first introduced Automated Teller Machine (ATM) in India (1987)?
a) SBI
b) Punjab National Bank
c) Federal Bank
d) HSBC
e) Other than the given

25. Refinance facility is provided by NABARD. Which institutions can avail this facility?
a) State cooperative banks
b) Regional rural banks
c) Commercial bank
d) All of the above
e) Other than the given

26. Which of the following is true?
a) NBFCs can accept deposits from the public
b) NBFCs cannot offer deposit schemes to the public
c) Deposits of NBFCs are insured with DICGC
d) NBFCs can accept deposits from public if they are registered and permitted by RBI
e) Other than the given

27. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up this ‘Base rate’ for banks?
a) Individual Banks’ Board
b) Ministry of Commerce
c) Ministry of Finance
d) Rreserve Bank of India
e) Interest Rate Commission of India

28. Commercial banks are the largest category of financial intermediaries; others include?
a) Life-insurance companies
b) Pension funds
c) Savings and loan institutions
d) All of the above
e) None of the above

29. An average citizen cannot open a Savings account in which of the following?
a) Commercial bank
b) Post office
c) Co-operative bank
d) RBI
e) Other than the given

30. Educational for All Development Index is released by?
a) IMF
b) World Bank
c) UNO
d) WTO
e) Other than the given

31. Non-Agricultural Market Access (NAMA) word is related to which organization?
a) WTO
b) UNCTAD
c) IMF
d) World Bank
e) NDB

32. RBI has introduced “Marginal Standing Facility” with the objective of:
a) Controlling Inflation
b) Containing instability in long term inter-bank rates
c) Containing instability in the overnight inter-bank rates
d) All of the above
e) None of the above

33. Which of the following is not a measure to control inflation as adopted by Govt. of India and/or RBI?
a) Monetary Policy
b) Fiscal Policy
c) Financial Inclusion
d) Price control
e) Bank Rate Policy

34. card is basically a payment mechanism which allows the holder to make purchase without any immediate cash outflows either physically or through his accounts?
a) Debit
b) Smart
c) Credit
d) ATM
e) Kisan Credit

35. The Negotiable Instruments Act deals with?
a) Cheques, demand drafts, banker’s cheques
b) Promissory notes, bills of exchange and cheques
c) Bills of exchange, Cheques and demand drafts
d) Cheques, demand drafts and saving bank withdrawal forms
e) None of the above

36. Small Industries Development Bank of India’s Single Window scheme means that a borrower is granted?
a) Both term loan for fixed assets & loan for working capital through the same agency, namely, SFCs or Commercial Banks
b) Both term and working capital through SIDBI itself
c) Both term loan and working capital hrough IDBI
d) All of the above
e) None of the above

37. has been declared the first ‘total banking state’ in India, successfully implementing the total financial inclusion thereby ensuring banking facility to all households.
a) Maharashtra
b) Kerala
c) Himachal Pradesh
d) Uttarakhand
e) None of the above

38. What do you understand by the term ‘Mortgage’?
a) Sale of moveable security in the event of default by the borrower
b) Registration of charge with the Registrar of Companies
c) Making the security of immovable property avail able as a cover for a home loan by the borrower
d) Registration of charge with the Regional Transport Authority
e) Returning of the security to borrower by the bank of receipt of full payment

39.Which of the following acts is useful in controlling HAWALA transactions?
a) FEMA Act
b) RBI Act
c) DICGC Act
d) Banking Regulation Act
e) None of the above

40.CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’ stand for?
a) Currency
b) Compensation
c) Capital Adequacy
d) Capitalisation
e) None of the above

ANSWERS
1.d 2.d 3.b 4.b 5.b 6.a 7.c 8.c 9.d 10.d
11.d 12.b 13.c 14.c 15.b 16.a 17.a 18.c 19.c 20.a
21.b 22.c 23.c 24.d 25.d 26.d 27.a 28.d 29.d 30.c
31.a 32.c 33.b 34.c 35.c 36.a 37.b 38.c 39.a 40.c

INDIA BUDGET 2017-18 HIGHLIGHTS

The 2017 Union Budget, presented by Finance Minister Arun Jaitley on 01st February 2017, was broadly focused on 10 issues farming sector, rural population, youth, poor and health care for the underprivileged, infrastructure, financial sector for stronger institutions, speedy accountability, public services, prudent fiscal management and tax administration for the honest.

                                                         Demonetisation

1. Demonetisation is expected to have a transient impact on the economy.

2. It will have a great impact on the economy and lives of people .

3. Demonetisation is a bold and decisive measure that will lead to higher GDP growth.

4. The effects of demonetisation will not spillover to the next fiscal.

Agriculture sector

1. Sowing farmers should feel secure against natural calamities.

2. A sum of Rs. 10 lakh crore is allocated as credit to farmers, with 60 days interest waiver.

3. NABARD fund will be increased to Rs. 40,000 crore. 

4. Government will set up mini labs in Krishi Vigyan Kendras for soil testing.

5. A dedicated micro irrigation fund will be set up for NABARD with Rs 5,000 crore initial corpus.

6. Irrigation corpus increased from Rs 20,000 crore to Rs 40,000 crore.

7. Dairy processing infrastructure fund wlll be initially created with a corpus of Rs. 2000 crore.

8. Issuance of soil cards has gained momentum.

9. A model law on contract farming will be prepared and shared with the States.

Rural population

1. The government targets to bring 1 crore households out of poverty by 2019.

2. During 2017-18, five lakh farm ponds will be be taken up under the MGNREGA.

3. Over Rs 3 lakh crore will be spent for rural India. MGNREGA to double farmers' income.

4. Will take steps to ensure participation of women in MGNREGA up to 55%.

5. Space technology will be used in a big way to ensure MGNREGA works.

6. The government proposes to complete 1 crore houses for those without homes.

7. Will allocate Rs. 19,000 crore for Pradhan Mantri Gram Sadak Yojana in 2017-18.

8. The country well on way to achieve 100% rural electrification by March 2018.

9. Swachh Bharat mission has made tremendous progress; sanitation coverage has gone up from 42% in Oct 13 to 60% now.

 youth

1. Will introduce a system of measuring annual learning outcomes and come out with an innovation fund for secondary education.

2. Focus will be on 3,479 educationally-backward blocks.

3. Colleges will be identified based on accreditation.

4. Skill India mission was launched to maximise potential. Will set up 100 India International centres across the country.

5. Courses on foreign languages will be introduced.

6. Will take steps to create 5000 PG seats per annum.

For the poor and health care

1. Rs. 500 crore allocated for Mahila Shakthi Kendras.

2. Under a nationwide scheme for pregnant women, Rs. 6000 will be transferred to each person.

3. A sum of Rs. 1,84,632  crore allocated for women and children.

4. Affordable housing will be given infrastructure status.

5. Owing to surplus liquidity, banks have started reducing lending rates for housing.

6. Elimination of tuberculosis by 2025 targeted.

7. Health sub centres, numbering 1.5 lakh, willl be transformed into health wellness centres.

8. Two AIIMS will be set up in Jharkhand and Gujarat.

9. Will undertake structural transformation of the regulator framework for medical education.

10. Allocation for Scheduled Castes  is Rs. 52,393  crore

11. Aadhaar-based smartcards will be issued to senior citizens to monitor health.

Infrastructure; Railways

1. A total allocation of Rs. 39,61,354 crore has been made.

2. Total allocation for Railways is Rs. 1,31,000 crore.

3. No service charge on tickets booked through IRCTC.

4. Raksha coach with a corpus of Rs. 1 lakh crore for five years (for passenger safety).

5. Unmanned level crossings will be eliminated by 2020.

6. 3,500 km of railway lines to be commissioned this year up from 2,800 km last year.

7. SMS-based ''clean my coach service'' is put in place.

8. Coach mitra facility will be introduced to register all coach related complaints.

9. By 2019 all trains will have bio-toilets.

10. Five-hundred stations will be made differently-abled friendly.

11. Railways to partner with logistics players for front-end and back-end solutions for select commodities.

12. Railways will offer competitive ticket booking facility

13. Rs. 64,000 crore allocated for highways. 

14. High speed Internet to be allocated to 1,50,000 gram panchayats

15. New Metro rail policy will be announced with new modes of financing

Energy Sector

1. A strategic policy for crude reserves will be set up

2. Rs. 1.26,000 cr for energy production-based investments received

3. Trade infra export scheme will be launched 2017-18.

Financial Sector

1. FDI policy reforms - more than 90% of FDI inflows are now automated.

2. Shares of Railway PSE like IRCTC would be listed on stock exchanges. 

3. Bill on resolution of financial firms to be introduced in this session of parliament.

4. Decided to abolish FIPB in 2017-18.

5. Foreign Investment Promotion Board to be abolished.

6. Revised mechanism to ensure time bound listing of CPSEs

7. Computer emergency response team for financial sector to be formed.

8. Pradhan Mantri Mudra Yojana lending target at Rs 2.44 lakh crore for 2017-18

9. Digital India - Bhim app will unleash mobile phone revolution - two new schemes to promote the app.

10. Govt to introduce two new schemes to promote BHIM App - referral bonus for users and cash back for traders: FM.

11. Negotiable Instruments Act might be amended.

12. DBT to LPG consumers , Chandigarh is kerosene free, 84 govt schemes are on the DBT platform.

13. Head post office as the central office for rendering passport services

14. Easy online booking system for Army, defence personnel

15. For big-time offences - including economic offenders fleeing India, the govt. will introduce a legislative change or new law to confiscate the assets of these people within the country.

Fiscal Situation

1. Total expenditure - Rs. 21, 47,000 crore

2. Abolition on plan, non-plan expenditure, focus on capital expenditure ( Capital expenditure will be 25.4 per cent)

3. Rs. 3,000 crore under Dept of Economic Affairs for implementing Budget announcements.

4. Defence expenditure, excluding pension, at Rs 2,74,114  crore

5. Expenditure in science and technology —  Rs. 37,435 crore

6. Total resources transferred to States and UTs is Rs 4.11 lakh crore

7. Recommended 3% fiscal deficit for three years with deviation of 0.5% of GDP.

8. Revenue deficit - 1.9 %

9. Pegged fiscal deficit of 2017-18 at 3.2% of GDP and remain committed to achieving 3% in the next year.

On funding of political parties

1. Maximum amount of cash donation for political parties will be Rs 2,000 from any one source from Rs 20,000

2. Political parties will be entitled to receive donations by cheque or digital mode from donors.

3. Amendment is being proposed to RBI Act to enable issuance of electoral bonds that government will scheme. Donor can 4. purchase these bonds from banks or post office via cheque or digital transactions. They can be redeemed only by registered political parties.

Tax proposals

1. Proportion of direct tax to indirect tax is not optimal.

2. 1.95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.

3. Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.

4. Only 1.72 lakh people showed income of more than Rs 50 lakh a year.

5. Between Nov 8 to Dec 30: Deposits between Rs 2 lakh and Rs 80 lakh was made in 1.09 crore accounts.

6. Net tax revenue of 2013-14 was Rs 11.38 lakh crore.

7. Out of 76 lakh individual assessees declaring income more than Rs 5 lakh, 56 lakh are salaried.

8. 1.95 crore individuals showed income between Rs 2.5 lakh to Rs 5 lakh.

9. Rate of growth of advance tax in Personal I-T is 34.8% in last three quarters of this financial year.

10. Holding period for long term capital gain lowered to 2 years

11. Propose to have carry-forward of MAT for 15 years.

12. Capital gains tax to be exempted for persons holding land from which land was pooled for creation of state capital of Telangana.

13. Corporate tax: In order to make MSME companies more viable, propose to reduce tax for small companies of turnover of up to 16. Rs 50 crore to 25%. About 67 lakh companies fall in this category. 96% of companies to get this benefit.

14. Propose to reduce basic customs duty for LNG to 2.5% from 5%

15. SIT on black money suggested no cash transactions of more than Rs 3 lakh. Govt has accepted this proposal.

16. Income Tax Act to be amended.  No transaction above Rs 3 lakh to be permitted in cash.

17. Limit of cash donation by charitable trust reduced to Rs 2,000 from Rs 10,000.

18. Net revenue loss in direct tax could be Rs. 20,000 crore.

19. India’s tax to GDP ratio is not favourable.

20. Out of 13.14 lakh registered companies, only 5.97 lakh companies have filed returns for 2016-17.

Personal income tax

1. Existing rate of tax for individuals between Rs.  2.5- Rs 5 lakh reduced to 5% from 10%

2. All other categories of tax payers in subsequent brackets will get benefit of Rs 12,500.

3. Simple one page return for people with annual income of Rs. 5 lakh other than business income.

4. People filing I-T returns for the first time will not come under govt. scrutiny5. 

5. 10% surcharge on individual income above Rs. 50 lakh and up to Rs 1 crore to make up for Rs 15,000 crore loss due to  cut in personal I-T rate. 15 surcharge on individual income above Rs. 1 crore to remain.

CURRENT AFFAIRS PRACTICE QUESTIONS FOR ALL COMPETITIVE EXAMS

1) In which city, India's first hill station bicycle path was launched?
a. Darjeeling
b. Indore
c. Pune
d. Gangtok

2) On the occasion of Maha shivratri , PM Narendra Modi unveiled a 112-feet-tall Lord Shiva statue,that was made entirely of ………
a. Bronze
b. Steel
c. Gold
d. Silver

3) India’s first Gramin Khel Mahotsav will be conducted in which city from 25th to 31st March 2017.?
a. Hyderabad
b. Chennai
c. New delhi
d. Agra

4) Which country army has launched nationwide military operation named ‘Radd-ul-Fasaad’ to eliminate menace of terrorism and consolidate gains of its counter-terrorism operations?
a. Iran
b. Iraq
c. Russia
d. Pakistan

5) The ……editon BRICS Summit’s first Sherpas Meeting took place in Nanjing?
a. 9th
b. 10th
c. 8th
d. 7th

6) Government has announced to bring high-speed broadband connectivity to every village by which year?
a. 2018
b. 2019
c. 2020
d. 2021

7) Which series of Sovereign Gold Bonds in 2016-2017 has been issued by union finance ministry recently?
a. Series III
b. Series IV
c. Series V
d. Series VI

8) The state-owned Airport Authority of India (AAI) along with International Air Transport Association (IATA) launched, an e-billing solution for airport operators across the world. Name it?
a. SKYREV360
b. SKYREV260
c. SKYREV460
d. SKYREV560

9) Which country and India held detailed deliberations on the legal processes and procedures on Extradition and Mutual Legal Assistance held in New Delhi recently?
a. USSR
b. USA
c. UK
d. UAE

10) The Union Cabinet has approved signing of a Memorandum of Understanding (MoU) between India and which country for promotion and development of coop - eration in civil aviation security?
a. Australia
b. Norway
c. Cuba
d. Cambodia

11) The PSU bank that has bagged two IBA Banking Technology awards is ……?
a. SBI
b. Andhra bank
c. Karnataka bank
d. Kerala bank

12) Hassan Ali Khaire is the new PM of which country , appointed on 23rd Feb 2017?
a. Somalia
b. Saudi arabia
c. Doha
d. Cuba

13) The Central Board of Excise and Customs (CBEC) has launched a mobile application for Goods and Services Tax. Taxpayers can readily access a host of GST information. Which of the following statements are true about it?
1. Migration to GST-Approach and guidelines for migration
2. Draft Law-Model GST Law, IGST Law and GST Compensation law
3. Draft Rules-Rules related to Registration, Returns, Payment, Refund and Invoice
4. Various resources on GST such a videos, articles etc
5. Related website links, FAQs, Help desk/email contact
a. Only 1,2,3 are true
b. Only 2,3,4 are true
c. Only 3,4,5 are true
d. All 1,2,3,4 and 5 are true

14) Sampark is a …………..?
a. Business Idea challenge
b. Industry academia interface event
c. Both of the above
d. None of the above

15) As cyber attacks are increasing, the government through its Computer Emergency Response Team (CERT-in) on 21st Feb 2017 launched which among the following?
a. Cyber swachhtha kendra
b. Cyber forensic kendra
c. Cyber swatch kendra
d. None of the above

16) Telecom operator Bharti Airtel will acquire the business of which among the following company?
a. Vodafone
b. Telenor (India) Communications Private Limited
c. Telenor India
d. Both b & c

17) TATA Communications recently launched which iOT platform?
a. MOVE
b. PULL
c. PUSH
d. SPEED

18) Rate of retreat of Gangotri glacier has slowed down to how many metres since 2008 from the maximum of 35 metres recorded in 1974?
a. 11
b. 13
c. 14
d. 15

19) Small Industries Development Bank of India (SIDBI) has signed a Memorandum of Understanding (MoU) with which Bank for providing concessional finance to micro and small enterprises (MSEs)?
a. State bank of India
b. Vijaya bank
c. Axis bank
d. Yes bank

20) India’s first heliport, built by stateowned Pawan Hans will be set up at ?
a. Agra
b. Delhi
c. Hyderabad
d. Jaipur

21) Which Tata Steel's iron mine was felicitated with the Best Green Organ isation of the Year Award at the Global Green Future Leadership Awards in recognition of its environmental prot -
ection measures?
a. Katamati
b. Bokaro
c. Dhanbad
d. None

22) Shurhozelie Liezeitsu is the new Chief minister of which state in India?
a. Nagaland
b. Tripura
c. Mizoram
d. Meghalaya

23) The government on 22nd Feb 2017 approved a plan to double the capacity of solar parks and ultra-mega solar power projects (UMSPP) to how much MW from 20,000 mw?
a. 70,000
b. 40,000
c. 30,000
d. 35,000

24) The Impossibility Theorem was proposed by whom among the following, who died on 21st Feb 2017 in california?
a. John adems
b. John andrews
c. Kenneth J. Arrow
d.Kenneth K. James

25) Among the following, who is the largest G20 investor in India?
a. Britain
b. Japan
c. China
d. USA

26) On which day The International Mother language day was observed?
a. Feb 21
b. Feb 23
c. Feb 20
d. Feb 19

27) The South Asian Speakers Summit 2017 concluded on 20 February 2017 in which city?
a. Agra
b. Indore
c. Bhopal
d. Dispur

28) Identify the state that released digital road map?
a. AP
b. Telengana
c. Haryana
d. Punjab

29) Professor from Delhi University (DU) and his team discovered four new miniature species, and that the Frogman of India is …………?
a. SD Biju
b. SD Bilu
c. SD Biku
 d. SD Bibbu

30) Government is developing which among the following, to promote cashless economy?
a. Online platform for regulating cashless payments
b. Mobile app for regulating online transactions
c. Digital matrix to evaluate states for cashless economy
d. All above

ANSWERS:
1. A 2. B 3.C 4.D 5.A 6.A 7.B 8.A 9.C
10.A 11.C 12.A 13.D 14.C 15.A 16.D 17.A 18.A 19.B 20.B
21.A 22.A 23.B 24.C 25.A 26.C 27.B 28.C 29.A 30.C

Linking of Bank Account with Aadhaar

Banks are committed to seed savings bank accounts with the account holder’s Aadhaar number, based on the account holder’s consent. 

Aadhaar seeding will help accountholders to do fund transfer through the Aadhaar Enabled Payment System (AEPS) at Banking Correspondent points. Bharat Interface for Money (BHIM) app also supports pay to Aadhaar number mode. Further, Direct Benefit Transfer (DBT) can be made to eligible seeded accounts. 

As per reports received from public sector banks, Regional Rural Banks and 13 private sector banks, there are 110.03 crore individual, operative savings bank accounts (including Pradhan Mantri Jan Dhan Yojana accounts) with Aadhaar number seeded in 52.95 crore accounts. 

The overreaching aim and objective of seeding is enabling delivery of basic financial services.