BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS

1. As per the Code of Bank's Commitment to Customers a bank must close/transfer an account maximum within a period of ____ days from the date of receipt of application.
a) 3 Days
b) 5 days
c) 7 days
d) At the earliest possible
e) No such restriction

2. Which risk is eliminated in case of the RTGS transaction?
a) Credit risk
b) Operational risk
c) Settlement risk
d) Systematic risk
e) c and d

3. What is the maximum period of deposit that can be opened under FCNR?
a) 1 year
b) 3 years
c) 5 years
d) 10 years
e) All the above

4. As per Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme, if the customer has taken a cover under multiple bank accounts then the amount of premium under this will be ______.
a) Forfeited
b) Renewed
c) Double
d) Same

5. The Jan Dhan Yojana aims directly in promoting:
a) Social Justice
b) Financial Inclusion
c) Rural Development
d) Digital Empowerment
e) Urban Development

6. The premium of 10 paisa for every Rs.100 payable on behalf of the depositor under Deposit Insurance and Credit Guarantee Corporation(DICGC) will be borne by:
a) Bank
b) Life Insurance Corporation of India
c) General Insurance Corporation of India
d) Customer
e) Bank and Customer equally

7. Who was the first woman Deputy Governor of the Reserve Bank of India?
a) Shyamala Gopinath
b) Usha Thorat
c) Arundhati Bhattacharya
d) K.J.Udeshi
e) Usha Ananta Subramanian

8. Which bank has received $100 million (about Rs.645 crore) as the first tranche of ADB's multimillion dollar funding for installation of rooftop solar systems in India?
a) United Bank of India
b) Punjab National Bank
c) Bank of Baroda
d) Canara Bank
e) Corporation Bank

9. The maximum amount that can be deposited in a 'Sukanya Samriddhi Scheme' account in a
financial year is:
a) Rs. 1,00,000
b) Rs.1,50,000
c) Rs. 1,35,000
d) Rs.1,75,000
e) Rs. 1,25,000

10. Under Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) scheme, an individual is eligible to join the
scheme at the age between 18 years to____.
a) 30 years
b) 40 years
c) 50 years
d) 60 years

11. Which of the following is/are correct regarding Introduction of Additional Settlement Batches
for National Electronic Funds Transfer (NEFT)?
a) The NEFT settlement cycle will be reduced from hourly batches to half hourly batches
b) 11 additional settlement batches will be introduced
c) The total number of half hourly settlement batches during the day will be increased to 23
d) The starting batch at 8.00 am and closing batch at 7.00 pm shall remain the same.
e) All the above

12. In the case of deposit held by joint Individuals, the nomination can be made in favour of:
a) A single individual
b) More than one person in case deposit is payable jointly
c) More than one person in case deposit is payable to either or survivor(s)
d) Separate persons by each depositor
e) None of these

13. What is CDD as per KYC?
a) Customer Duly Diligence
b) Customer Due Delivery
c) Current Deposit delivery
d) Customer due Diligence
e) None of the above

14. STR in the context of Prevention of Money Laundering Act 2002 stands for?
a) Select Transaction Report
b) Suspicious Transaction Report
c) Suspected Transfer Report
d) Suspected Transaction Record
e) None of the above

15. What is the risk classification for "Salaried employees"?
a) Low risk account
b) Medium risk account
c) High risk account
d) All the above
e) None of the above

16. "Clean note policy" of RBI reiterates the Banks to follow which of the following measures?
a) To sort notes into issuable & non-issuable
b) Not to staples notes & to loose pack notes
c) Not to issue soiled & cut notes to general public
d) Not to scribble on the currency notes
e) All the above

17. As per Basel norms Capital is linked to_____:
a) Size of Deposits
b) Risk Weightage of Assets
c) Profitability of the bank
d) Macro economic conditions
e) None of the above

18. Atal Pension Yojana (APY) offers fixed amount of pension ranging between Rs.1,000 to ____
depending upon the contribution which will be based on the age of joining the APY:
a) Rs.2000
b) Rs.3000
c) Rs.4000
d) Rs.5000
e) Rs.10,000

19. As per recent announcement made by Prime Minister on 31st December, 2016,______Kisan credit cards will be converted into RuPay cards in coming 3 months. Government will bear _____ interest on select farm loans.
a) Rs.2 crores; 30 days
b) Rs.2.5 crores; 45 days
c) Rs.3 crores; 60 days
d) Rs.3 crores; 90 days
e) None of the above

20. ______will be the third and final financing stage for MUDRA Bank and maximum loan up to_______can be provided under this stage.
a) Tarun, Rs.8 lakh
b) Tarun, Rs.10 lakh
c) Vyaska, Rs.12 lakh
d) Kishore, Rs.15 lakh
e) Sishu, Rs.4 lakh

21. Which of the following schemes have been launched under Pradhan Mantri Awas Yojana?
a) AMRUT
b) Smart Cities Mission
c) Housing for All
d) All of these
e) Only a & b

22. When the award of the banking ombudsman is not acceptable to customer, he can appeal the matter to the appellate authority. The fee payable to Appellate Authority is:
a) Rs.5,000
b) Rs.6,000
c) 25% of the amount in dispute
d) 50% of the amount in dispute
e) Nil

23. In cheque Truncation system clearing the Image Replace Document (IRD) means:
a) Cheque itself
b) Image of the image
c) An authenticated copy of the cheque
d) Truncated cheque
e) None of the above

24. Nominee has predeceased the A/c holder. Payment shall be made to:
a) Against joint discharge to Legal heirs of the depositor and the legal heirs of nominee.
b) Legal heirs of the nominee
c) Legal heirs of the depositor
d) Payment through Court order or Succession Certificate
e) None of the above

25. Under Sukanya Samridhi Account (SSA) the maximum period upto which the deposits can be made is for___ years from the date of opening of the account?
a) 12 years
b) 14 years
c) 16 years
d) 18 years
e) 21 years

26. The maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is:
a) 7 years
b) 9 years
c) 10 years
d) 12 years
e) None of the above

27. Branches should adopt a system of periodical updation of customer identification data (including
photograph/s) after the account is opened. The periodicity of such updation for High Risk, Medium
Risk and Low Risk category customers are:
a) Two/eight/ten years
b) Two/five/ten years
c) Two/two/five years
d) Ten/eight/two years
e) No such updation is required

28. What are the three pillars of Basel-II?
a) Minimum Capital Requirement, Supervisory Review & Market Discipline
b) Minimum Capital Fund, Asset quality & Financial Supervision
c) Minimum capital adequacy, Asset quality & Risk Management
d) Prudential accounting, greater transparency & Accountability
e) Moderate Capital Adequacy, Risk Management and Market Supervision

29. Establishment of Lok Adalat is governed by which of the following Acts?
a) SARFAESI act 2002
b) Legal services authority act 1987
c) Lok Adalat Act 1985
d) Recovery of debt due to Banks and financial Institutions
e) Indian Contract Act

30. Which bank is planning to raise Rs.9,000 crore through various instruments including Follow-on Public Officer (FPO) of Rs.6,000 crore?
a) Bank of Baroda
b) Bank of India
c) State Bank of India
d) Syndicate Bank
e) Union Bank of India

31. Which of the following documents are required for registration of a Jeevan Pramaan?
a) Aadhar number
b) PPO number
c) Bank Account number
d) All of the above
e) Only a & b

32. The electronic mechanism used by banks for transmitting financial messages across the borders:
a) Telex
b) DOTNET
c) RTGS
d) SWIFT
e) INFINET

33. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was approved with an outlay of_____.
a) Rs.500 crore
b) 1000 crore
c) Rs.12,000 crore
d) Rs.1,500 crore
e) Rs.2000 crore

34. Bank is required to issue TDS certificate on form______within _____month in which deduction is made:
a) 15-G; one;
b) 15-H; one;
c) 16- A; two;
d) 16- A; one;
e) Form 60; one;

ANSWERS:
1) a 2) c 3) c 4) a 5) b 6) a 7) d 8) b 9) b 10) c
11) e 12) a 13) d 14) b 15) a 16) e 17) b 18) d 19) c 20) b
21) d 22) e 23) c 24) c 25) b 26) a 27) a 28) a 29) b 30) a
31) d 32) d 33) c 34) d

BANKING AWARENESS PRACTICE QUESTIONS

1. As per the latest Monetary Policy Review it has been decided by The Reserve Bank of India to reduce the Staturory Liquidity Ratio w.e.f 24th June 2017 from 20.5% to ______:
a) 20.00%
b) 20.25%
c) 20.75%
d) 21.00%
e) None of the above

2. Which bank is launching Rs. 15,000 Crore share sale to Institutions to increase capital base as a part of meeting Basel III requirements by March 2019?
a) Indian Bank
b Union Bank of India
c) State Bank of India
d) United Bank of India
e) IDBI

3. Which of the following are the facts about Money Transfer Service Scheme (MTSS)?
a) It is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India.
b) Only inward personal remittances into India such as remittances towards family maintenance
c) Remittances favouring foreign tourists visiting India are permissible
d) No outward remittance from India is permissible under MTSS
e) All the above

4. In Electronic Clearing Service there are two types of viz., ECS debit and ECS Credit. What does ECS debit represents?
a) Number of debits and one credit
b) Number of credits and one debit
c) Multiple number of debits and credits
d) Few Debits and Few Credits
e) None of the above

5. The Public Information Officer is required to reply to the query raised under Right to Information
Act within in maximum period of ___ days. In case of delay, the penalty is Rs. ____ per day.
a) 10 days; 100
b) 15 days ; 100
c) 20 days ; 250
d) 30 days ; 250
e) 7 days : 350

6. Fiscal policy is concerned with which of the following?
a) Public revenue and expenditure
b) Issue of currency
c) Education for all
d) Population control
e) Export and Import

7. When credit facilities to one party are sanctioned by more than one bank under a common arrangement, such facility given to a customer is called _____:
a) Consortium
b) Syndication
c) Multiple Banking
d) Participation
e) None of the given options is true

8. FATCA stands for ?
a) Forex Account Tax Compliance Act
b) Foreign Account Tax Compliance Act
c) Forex Account Total Compliance Act
d) Foreign Account Total Compliance Act
e) None of the given options is true

9. In case of decision given by LokAdalat, the appeal against judgement by aggrieved customer can be made within _____:
a) 1 month from the date of judgment
b) 45 days from the date of judgment
c) 2 months from the date of judgment
d) 3 months from the date of judgment
e) No appeal allowed

10. The unclaimed deposits for 10 years and above will be transferred to Depositor Education Awareness Fund (DEAF). This DEAF was introduced in the year__:
a) 2012
b) 2013
c) 2014
d) 2015
e) 2016

11. "Buy Now - Pay Now" is commonly used for ____:
a) Debit Cards
b) Vault Cards
c) Credit Cards
d) E-purse
e) None of the above

12. A settlement system in which the processing and final payment of funds transfer instructions takes place continuously, is called ___.
a) Debit clearing system
b) Credit clearing system
c) National clearing system
d) Real time gross settlement
e) Speed Clearing system

13. Acollaborative network that uses Internet Technology to link business with their suppliers is ____.
a) Internet
b) Intranet
c) Extranet
d) WAN
e) LAN

14. Banknet was set up by ___:
a) IBA
b) RBI
c) Central Govt
d) IT department of Concerned Bank
e) None of the above

15. A There are credit rating Agencies like Standard and Poor, Moody's. According to these Agencies
Corporate Bond which carry a rating of AAA is considered to be _____:
a) Exceptional degree of credit worthiness and top credit rating
b) High probability of default
c) Low risk
d) Medium Risk
e) 3/4th risk

16. Which of the following are part of Public Sector Banks ?
(i) Bank of India
(ii) Central Bank of India
(iii) Regional Rural Bank, sponsored by a nationalized bank
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
e) None of the above

17. RBI introduced Commercial Paper in the year_____:
a) 1970
b)1980
c) 1985
d) 1990
e) 2000

18. When the Award of the Banking Ombudsman is not acceptable to the parties, they can approach
Appellate Authority. At this stage the appellate authority may:
a) Dismiss the appeal
b) Send the matter to the Banking Ombudsman for fresh disposal in accordance with such directions as the appellate authority may consider necessary or proper
c) Modify the award and pass such directions as may be necessary to give effect to the modified award
d) Pass any other order as it may deem fit
e) All the above

19. Credit cards are of standard size and thickness and are embossed with which of the the following details?
(i) Name of card holder
(ii) Card number
(iii) Validity date
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
e) Only (i)

20. Which of the following are correct regarding Indo - Nepal Remittance Scheme?
a) A remitter can transfer funds up to Rs. 50,000
b) A remitter can transfer funds only upto Rs. 25,000
c) It is not necessary that the remitter should maintain an account with a bank in India.
d) a remitter can transfer funds upto Rs 1,00,000
e) Only a & c

ANSWERS:
1) a 2) c 3) e 4) a 5) d 6) a 7) a 8) b 9) e 10) c
11) a 12) d 13) c 14) b 15) a 16) d 17) d 18) e 19) d 20) e

EC launches toll-free no. for queries

The Election Commission (EC) launched a toll-free number (1800111950) for citizens to reach out with queries, give suggestions or lodge complaints pertaining to polls, electoral rolls and other related issues. Currently, the service has been made available in English and Hindi. The EC's executives
would also make outbound calls for educating voters.

The World Intellectual Property Organization (WIPO)

WIPO is one of the 17 specialized agencies of the United Nations. WIPO was created in 1967 "to encourage creative activity, to promote the protection of intellectual property throughout the world". WIPO currently has 189 member states.  It's headquartering in Geneva, Switzerland.  The current Director-General of WIPO is Francis Gurry, who took office on October 1, 2008.