Professional Documents
Culture Documents
A - Current Ratio
B - Export Finance
C Standard Assets
D - Trade Finance
15) Bancassurance is
a) an insurance scheme to insure bank deposits
b) an insurance scheme exclusively for the employees
of banks
c) a composite financial service offering both bank and
insurance products
d) a bank deposit scheme exclusively for employees of
insurance companies
16) A bank installed an ATM at a Railway Station.Identify
the marketing mix:
a) promotion
b) place
c) package
d) product
17) Tele banking is based on
a) virtual banking
b) online banking
c) voice processing
d) core banking
18) Banking Regulation Act,1949 was enacted to regulate:
a) Reserve Bank of India
b) banking companies
c) cooperative land development banks
d) primary agricultural credit socities
a) fixed assets
b) standard assets
c) both a and b
d) neither a nor b
24) Onsite inspections of banks is based on -------methodology.
a) CRISIL
b) CAMELS
c) CCIL
d) LFAR
25) A cheque is received for payment with amount
mentioned only in words. The banker would:
a) as per NI Act,honour the cheque for the amount in
words
b) dishonour the cheque because no amount is
mentioned in figures
c) to safe guard the banks interest return the
cheque with reason:words and figure differs
d) none of the above
26) Identify the document of title to goods:
a) Bill of exchange
b) Bill of lading
c) Bill of entry
d) any one of the above
Solutions:
1) b 11) b
2) a 12) d
3) c 13) b
4) d 14) d
5) b 15) c
6) c 16) b
7) b 17) c
8) c 18) b
9) b 19) d
10) c 20) b
21) d
22) c
23) c
24) b
25) c
26) b
27) d
28) a
29) d
30) a
31) d
32) b
33) a
34) a
35) a
36) d
37) c
38) c
39) a
40) d
41) d
42) d
43) a
44) c
45) d
46) d
47) c
48) d
49) d
50) d
AGRI CLINICS
CROP LOANS
COLD STORAGE
ANSWER
3 to 5 km.
9 to 12 years
20%
Weaker sections
Rs. 5 lakhs
Rs.10 lakhs
25%
33.33 %
2%
Rs.3 lakhs
Harvest day
Every 6 months
2 crop seasons
1 crop season
Any area
Agriculture direct
Agriculture indirect
SSI
Non priority
EXPLANATION
Near the rural area
Repayment of agri loan
Margin
Small, marginal farmer
Agricultural & landless labourers
Agri Graduates
Project cost
Subsidy NABARD
Subsidy SC/ST
Interest subsidy
Maximum subsidy
Basis for calculation of interest for
short crop loans
Basis for normal crop loan
Short duration crops NPA
Long duration crop NPA
It can be opened.
Storage for Agri products
Leasing(running) of storage areas
Storage for Non agri products
Leasing of storage of non agri
products
POULTRY
HORTICULTURE
KVIC LOAN
SGSY
SSI
Non priority
15%
25%
33.33%
4%
Classified as standard
lakhs
Within 1 year fro date of
Interest subsidy
Letter of indent must go to the
sanction.
25%
10%
PMEGP IN RURAL
Within 15 days from the
horticulture board.
Subsidy for Rs. 10lakhs
Subsidy for above Rs. 10 lakhs
BY KVIC
Subsidy statement should
first disbursement
5 years
Rs. 10 Lakhs
< Rs. 10 Lakhs up to Rs.
submitted
Minimum repayment period
Micro service
2 crore
Rs. 25 Lakhs
< Rs. 25 Lakhs up to Rs.
5 Crore
< Rs. 5 Crore up to Rs.
10 Crore
< Rs. 2 Crore up to Rs.
SME
It can be opened
Storage for Agri products
5 crore
Up to Rs. 7.50 crore
Rs. 50 lakhs
Rs. 37.50 Lakhs.
Micro ent ,Rs. 5 lacs
Women N E states
SC / ST
Within 4 weeks
40% of total SME
0%
be
Small service
Micro Mfg
Small Mfg
Medium Mfg
Medium service
Turnover method to be applied to
CGTMSE loan coverage
Amount covered (75%)
Increased coverage of 80%
Only 75% Coverage
Loan application to be disbursed
Target for Micro services
Risk weight for coverage under
50%
1.5%
0.75%
Both fund and non fund
based facilities
SIDBI
Rs. 10 lakhs
25%
33.33%
CGTMSE
Risk weight for coverage under
ECGC
Guarantee fee (one time)
Annual fee
Covered under CGTMSE
Monitors SME
Maximum under TUFS
Handloom subsidy (general)
For SC/ ST
TEST
wholesale banking
merchant banking
retail banking
all the above
9.A banks Fixed Deposits is characterized by
Fixed/Floating interest rate as agreed with the customer at the time of the deposit
Fixed period of the deposit
Periodical Repayment of interest
10.Fixed deposits cannot be
Renewed for a further period on maturity date
Transferred to third parties
Pre-paid before the maturity date
All the above
11. Know Your Customer (KYC) guidelines are intended to
Establish identity with residence proof of the customers
Prevent fictitious or Benami transactions
Protect the bank from the risk of not acting in good faith
All the above
12.Mr.A is not maintaining the minimum balance in his account and is in the habit of issuing
cheques without maintaining sufficient balance.,His account has become an undesireable
account due to unsatisfactory operations.He does not agree to close the account even after
repeated oral requests .In this case,the bank has
right to close the account once cheque book gets exhausted
b. right to close the account after serving notice and can close the account on expiry of
the notice period
c. right to close the account after giving public notice in the notice board of the bank
no right to close the account under the Banking Ombudsman scheme
13. An actionable claim is assigned in favour of more than one assignee at different points of
time.The priority of charge is determined with reference to the date of
execution of notice of assignment
execution of the written instrument for assignment
receipt of notice of assignment
receipt of written instrument for assignment
14.The document to be verified to ascertain the borrowing powers of directors is
Memorandum of Association
Articles of Association
Certificate of incorporation
Board Resolution
15. The following are security issues relating to internet banking 1.Confidentiality of transactions
2.Integrity of transactions 3.Non-repudiation of transactions by customers 4.Privacy of transaction
Choose the most appropriate answer from the following
All the above 4 statements are concerned with security issues
Statement 1,2 and 3 only are concerned with security issues
Statement 1 and 2 only are concerned with security issues
Statement 1 only is concerned with security issues
16. MICR Cheques are used for clearing in India. The Centre Code in MICR contains
9 digits
8 digits
7 digits
6 digits
All the above
17. The following is not a feature of RTGS[Real Time Gross Settlement System]
Instruction Processing
Settlement Processing
Liquidity Management
Profitability Management
18. The following is not a operational risk
Failure of ATM Card
Fraud through Smart Card
Money laundering through Credit Card
Failure to issue a replacement card
19.PIN in Smart Card is called --Permanent Index Number
Personal Identification Number
Personal Index Number
Permanent Identification Number
20.Smart Card is
Special purpose Cards
Microprocessor Cards
Processing unit contains memory for storing data
Processing unit for software handling
21.The word FTP stands for ----File Translate Protocol
File Transit Protocol
File Typing Protocol
File Transfer Protocol
22 The term HTML connotes
Hyper Text Markup Language
Hyper Transcription Markup Language
High Text Markup Language
High Terminal Markup Language
23 Which one of the following is an example of Non-fund based credit facility?
Cash Credit
Guarantee
Term Loan
Demand Loan
24 Cash Credit facility is granted by a bank to finance the borrowers
Inventories or stocks of goods
Fixed assets
Temporary liquidity needs
Both (a) and (c) above
25 LC is a popular product of banks. This is
a funding facility called letter of credit
insurance companies obtains an authorization from the customer to debit his specified bank
account with the amount of the bills at regular intervals. This is known as
Debit Clearing System
Credit Clearing System
Standing Instructions System
Authorization System
35 The following is/are computer hardware 1)Modem 2)Ethernet Card 3)Operating System
4)Ports Choose the most appropriate answer from the following
1 only is correct
1 and 2 are correct
1,2 and 3 are correct
1,2,3 and 4 are correct
36 "Buy Now Pay Now" is commonly used for --Debit Cards
Vault Cards
Credit Cards
E-purse
37 A Recurring Deposit account requires the customer to
Deposit any amount at specified intervals for a specified period
Deposit a fixed amount at will for a specified period
Deposit a fixed amount at specified intervals for any period
Deposit a fixed amount at specified intervals for a specified period
38 Nomination is not applicable in the case of
Account of an individual
Joint account of two or more individuals
Account of Hindu Undivided Family (HUF)
Account of a company
39 Working capital credit facilities are intended to meet the borrowers:
Short-term credit requirements
Medium-term credit requirements
Long-term credit requirements
All the above
40 For Internet Banking a customer requires
Personal Computer and telephone link
Personal Computer, telephone line, modem and Internet Service Provider
Personal Computer, telephone link and modem
Personal Computer, telephone link and Internet Service Provider
41 The distinction between FII and FDI is
While FIIs invest in industries FDIs invest in capital markets
While FIIs invest in Capital markets FDIs invest in industries
Both can invest in Capital markets
None of the above
42 NPAs are critical for the health of a bank. These are -New Performing Assets
Non-Performing Assets
New Promising Advances
None of the above
PRINCIPLES OF BANKING
IV.
LETTER OF CREDIT
01.
02.
03.
04.
05.
06.
07.
08.
9.
VIII.
01.
02.
03.
04.
05.
06.
07.
08.
09.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
these deposits shall from part of the assets of the company on which the creditors in India
shall have the first charge.
34.. Declaration of dividend by banks require a minimum 9% of CAR and Net NPAs not
exceeding 7%. The quantum of dividend that can be declared is based on the levels of net
NPAs and in a graded level (Maximum 40%pay out ratio) and can be paid only from
current years profits
39.. On the Reserve Bank of India passing a removal order, the concerned person ceases
to hold office which he/she was holding till then. Further he/she is prohibited, from
directly or indirectly taking part in the management of any banking company for a period
not exceeding 5 years as may be specified in the order. Contraventions of the order is
punishable with a find of Rs.250 for each day during which the contravention continues.
47.. RBI issues directions from time to time regulating the lending operations of banking
companies
* The tools employed for exercising Selective Credit Control are
Minimum margins for lending against selected commodities
ceilings on the levels of credit and
* charging of minimum rate of interest on advances against specified commodities
48.. RBI is authorized to regulate interest rates on loans and advances as well as deposits.
The Usurious Loans Act. 1918 prohibits lending at exorbitant rates. The law has
been made to protect the weaker borrowers from the powerful moneylenders
RBI has issued guidelines in respect of internet banking. These cover a..
Technology
and Security issues b.. Legal issue and c . Regulatory and
supervisory issues
55..The guidance (Basel committee) entitled Enhancing Corporate Governance for
Banking Organizations highlights the importance of the roles of boards of directors (with
a focus on the role of independent directors) and senior management.
. effective management of conflicts of interest
. the roles of internal and external auditors, as well as internal control functions
. governing in a transparent manner, especially where a bank operates in jurisdictions,
or through structures, that may impede transparency and
.
the role of supervisors in promoting and assessing sound corporate governance
practices
61..Banks have to file a return on their unclaimed deposit within 30 days of the end of
each calendar year.
.. All deposits not operated in 10 years
.. For term deposits, the period of 10 years starts from the expiry of the period of the
deposit
67..Selective Credit Control seeks to influence the demand for credit by
(i). making borrowing more costly for certain purposes which are considered relatively
inessential or
(ii). by imposing stringent conditions on lending for such purposes. Or
(iii). by giving concessions for certain desired types of activities
68..The tools employed for exercising SCC are
(i) .. minimum margins for lending against selected commodities
(ii) .. ceilings on the levels of credit
(iii).. charging of minimum rate of interest on advances against specified commodities.
72..The Reserve Bank of India (Amendment) Act,2006(Section 45W) empowers the
Bank, in public interest or to regulate the financial system of the country to its advantage,
to determine the policy relating to interest rates or interest rate products and give
directions in that behalf to all agencies or any of them, dealing in securities, money
market instruments, foreign exchange , derivatives, or other instruments of like nature as
the Bank may specify from time to time.
73..Banking Ombudsman is an authority established under the Banking Ombudsman
Scheme, 1995 by the RBI. The purpose is to resolve and settle the complaints of banking
public against the commercial banks and the scheduled primary cooperative banks
without resorting to courts.
74..Banking Ombudsman scheme applicable to all commercial banks, RRBs and
schedules primary co-operative banks.
.. Disputes between two banks can also be taken up with the Banking Ombudsman
..A banking ombudsman may act as an arbitrator
82..Appropriation of any amount from the reserve fund or the share premium account has
to be reported to RBI within 21 days of such appropriation.
.. Every scheduled bank has to submit a return to RBI showing the demand and time
liabilities and borrowings from banks in India
85..In the case of banking companies which are not scheduled banks, as per the
provisions of BR act, the cash reserve need not be maintained with RBI. It may be with
the bank itself, or in a current account with RBI or byway of net balance in current
accounts or in one or more of these ways
87..Every banking company has to maintain in India certain amount of assets as per the
provisions of BR act.
.. At the close of business on the last Friday of every quarter, such assets shall not be less
than 75% of the demand and time liabilities of the banking company in India.
89..Every banking company has to submit 3 copies of its balance sheet and profit and loss
account to RBI within 3 months from the end of the period to which it relate. The period
may be extended by the RBI by a further period not exceeding 3 months.
94..RBI is empowered to order special audit of the accounts of any banking company.
The expenses relating to the special audit to be borne by the concerned banking
company.
.. Every month, a banking company has to submit to the RBI a return showing its assets
and liabilities in India as at the close of business on the last Friday of the previous month
102..Within 15 days of the winding up order, the liquidator has to give notice calling for
claims for preferential payment and other claims form every secured and unsecured
creditor. The depositors need not make claims. The claims of every depositor of a
banking company is deemed to have filed for the amount as shown in the books of the
banking company standing to his credit.
104..State Bank of India was established under sec 3 of the State Bank of India Act,1955
to take over the undertaking of the then Imperial Bank and to carry on the business of
banking and other business in accordance with that act.
.. The Central Government can give directions to SBI on matters of policy involving
public interest in consultation with the Governor of RBI and the Chairman of the State
Bank.
106..The State Bank will act as an agent of RBI at the places where it has a branch and
where RBI has no branch.
.. To handle government and other business as required by RBI.
.. The terms and conditions shall be as agreed between them.
107.. The Central Government may after consultation with the SBI and RBI by order in
writing authorize a subsidiary bank to undertake other form of business.
..The State Bank is empowered to inspect the subsidiary banks
..The auditors are appointed by State Bank of India in consultation with RBI
109.. Regional Rural Banks have the holding pattern such as Central Government 50% ,
Sponsor Bank 35% and State Government 15%
Two or more RRBs may be amalgamated by the Central Government by
notification in the Official Gazette
113.. In respect of Nationalized Banks, the shares other than those held by the Central
Government are freely transferable. No shareholder other than the Central Government
can exercise voting rights in excess of 1 % of the total voting rights of all the
shareholders
114..The directors of Nationalized banks are nominated by the Central Government or
elected from shareholders.
.. Among others one Chartered Accountant with not less than 15 years of experience
nominated in consultation with RBI.
.. Not more than 6 directors to be nominated by Central Government
117.. State Bank of India act was amended to divide capital into shares of Rs.10 each
instead of Rs.100/ The Banking Companies (Acquisition and Transfer of Undertakings) Act
amended to facilitate public holdings of shares.
Authorized capital could be up to Rs.1500/- crore divided into shares of Rs.10/each and also to increase or reduce the authorized capital between Rs.1500 crore
and Rs.3000 crore
119..The minimum paid up capital and reserves to start banking business by a cooperative
bank is not less than Rs.1.00 lac
.. A co-operative bank not to lend on its own shares/ unsecured loans or advances to its
directors/ any company or associates wherein the director has interest
120.. Restrictions not applicable for unsecured loans/ advances made by a co-operative
bank against bills for supplies or services made to government or bills of exchange
arising out of bona fide, commercial or trade transactions.
.. A co-operative bank to get permission of RBI to open a branch in a new place.
144.. When the customers signature on the cheque is forged there is no mandate to the
bank to pay. As such a banker is not entitled to debit the customers account on such
forged cheque.
.. The drawee of a cheque having sufficient funds of the drawer in his hands properly
applicable to the payment of such cheque must pay the cheque when duly required to do
so, and, in default of such payment, must compensate the drawer for any loss or damage
caused by such default.
145..Payment in due course means payment in accordance with the apparent tenor of
the instrument in good faith and without negligence to any person in possession thereof
under circumstances which does not afford a reasonable ground for believing that he is
not entitled to receive payment of the amount therein mentioned.
Interest free equity loan
National equity loan
10 lakhs
10%
65%
25%
2.5 lakhs
women only
reimbursement from SIDBI
7 years.
GUARANTEE
to banks
exporter risk
pre, post shipment guarantee,
production finance, finance,
performance, transfer guarantee
Educational loan
local studies 10 lakhs, foreign studies 20 lakhs, nil margin upto 4 lakhs, no collateral
upto 7.5 lakhs, simple interest, interest subsidy, holiday period.
Housing loan to rural poor
Project cost 50000, loan 32500, subsidy 10000 , margin 7500
Financial inclusion
Poor people, no minimum balance, no frill account, no KYC, loan, atm card, cheque book
facility, concession in service charges.
Micro
1.
2.
3.
4.
5.
its chairman
its Board of directors;
Reserve Bank of India
Indian Banks Association;
The Ministry of Finance.
Ans b.