KNOWLEDGE UPDATION TEST

(Officers 27.08.2011)
1) What is the maximum amount of withdrawal permitted to KVB Prestige account holder
at ATM?
a). Rs 30,000/b). Rs 50,000/c).Rs 1,00,000/d) any amount
2) KVB Prestige a/c provides free cash remittance at non-base branch upto Rs_____p.m
a). 1 lakh
b). 5 lakhs
c). 10 lakhs
d). 25 lakhs
3) Can the account holder continue after attaining12 years in the same Jumbo kids savings
account till he/she attains the age of 18 years?
a.
b.
c.
d.

No, after 12 years customer should change the account.

Yes, with prior permission from DO/CO,
Yes, customer can continue, if customer so desires
No, the Account has to be closed.

4) In the Rainbow savings a/c, Reverse Auto Sweep from RBFD to RBSB will be only in
multiples of Rs... and in method as and when required by the customer.
a. 5000 ,FIFO b. 5000,LIFO c. 1000 ,LIFO d. 1000,FIFO
5) A retired employee of the Bank is opening a Joint Term Deposit Account with his wife
as second joint account holder. He is also a Senior Citizen. His wife is not a Senior Citizen.
Whether he can claim the benefit of additional 1% applicable for member of staff of the
bank and additional 0.5% interest, being a Senior Citizen?
a) No. He is eligible only for the staff preferential interest
b) No. He is eligible only for senior citizen preferential interest
c) Yes, He can claim both 1% additional interest payable to retired member of
the staff and 0.5% allowed for Senior Citizen.
d) No, he can claim either staff preferential interest or senior citizen preferential
interest whichever is higher.
6) An agriculture Officer has joined in our bank on 3 years contract basis. Whether is he/she
eligible to claim the additional 1% staff preferential rate of interest?
a)
b)
c)
d)

No. it is only for confirmed staff.

No. He is not eligible but he can claim at least 50% staff preferential rate.
Yes, he can get 1% staff preferential rate
None of the above.

7) During the currency of the Term Deposit, one of the deposit holder wants to add the
name of one more holder for the same deposit, is it possible to modify?
a) No, it is not possible
b) Yes, we can modify on obtaining consent letter from all the deposit holders and
strictly adhere to due KYC diligence for new person.
c) Yes, it is possible only on or after maturity of the deposit
d) None of the above.
8) Which of the following customers fall under high risk category.
i. Antique dealers
ii. Money services bureau and dealers in arms
iii. Politically exposed persons of foreign origin
iv. A/c holders residing in European countries
v. Foreign nationals
a. i, ii & iii

b. i, ii & iv

c. ii, iii & iv

d. all the above

9) CAP stands for..

a. Capital Adequacy Percentage
b. Credit Accumulation Process
c. Credit Automation Procedure
d. Customer Acceptance Policy
10) The partnership firm need not be dissolved on _______________
a. Expiry of a partner b. Retirement of a partner
c. Insolvency of a partner
d. A minor partner attaining majority
11) In the event of death of any one of the trustees, _____________
a. the surviving trustees should be allowed to operate the account
b. the surviving trustees should not be allowed to operate the account
c. the president of trust is empowered to operate the account individually
d. the president of trust is empowered to operate the account along with another
member
12) Garnishee order is issued by ______________
a. Police Commission
b. Income tax department
d. CBCID

c. Competent Court

13) If a cheque bears non existent date, then

a. we can return the cheque with the reason the date is non existent
b. we can honour the cheque on the preceding date
c. we can honour the cheque on the prior working day, if the actual preceding date is
a holiday.
d. both (b) and (c) are correct.

14) In a Garnishee Order, the banker on whom garnishee order served is:
a) Judgement
b) Judgement
c) Judgement
d) Judgement

Debtors
Creditors
Creditors
Debtors

Creditor
Creditor
Debtor
Debtor

15) What is the ceiling amount for cash remittances to the savings account at base branch
without any cash charges.
a. Rs.1 lac
b. Rs.3 lacs
c. Rs.5 lacs
d. There is no ceiling. We can remit any amount without any cash charges.
16) The maximum no. of cash withdrawals per month permitted in an ordinary savings
account without charges is ..
a. No limit
b. upto Five transactions per month free
c. upto five transactions free if MAB is less then Rs.5000 and No limit if MAB is
more than Rs.5000
d. None of the above.
17) Repayment of proceeds of term deposits in excess of Rs...should not be made by
cash.
a. 10,000
b. 20,000
c. 50,000
d. 1,00,000
18) Whether it is possible to transfer the term deposit receipts?
a. yes, between any 2 customers
b. yes, between spouses only
c. yes, between family members only
d. no, term deposit receipts are not transferable
19) What is the maximum amount we can allow as over drawings in Smart SB?
a. Rs.10,000
b. Rs.15,000
c. Rs.25,000
d. Over drawings is not allowed
20) In Smart SB, Temporary Overdraft facility is available _________times in a year
a. 4
b. 6
c. 12
d. None of the above
21) If a duplicate deposit receipt is to be issued, a letter of _________ must be executed
by the depositor
a. Indemnity, Stamped /Witnessed
b. undertaking, Stamped/Witnessed
c. request
d. None of the above

22) All cash transactions(CTR) of the value of more than Rs.lacs or its equivalent in
foreign currency is reported to FIU-IND every month before..of succeeding months as
per POMLA Rule.
a. 10, 10th
b. 10,15th
c. 20,10th
d.20,15th
23) Savings bank customers are eligible for an Add on Card in the name of _______
a. Spouse
b. Partner
c. Friend
d. None of the above
24) In RBSB, the fixed deposit in RB FD attracts ______ Rate of Interest
a. Compound
b. Simple
c. Both (a) & (b)
d. None of the above
25) The sweep out facility happens when balance reaches Rs in RBSB
account and on every in a week in multiples of Rs
a. 8000, Monday and 3000
c. 15000, Sunday and 3000

b. 10000, Monday and 5000

d. 15000, Sunday and 5000

26) What is the amount of penalty for non- maintenance of MAB in case of KVB Prestige
a/c?
a). Rs 50/b). Rs 100/c).Rs 200/d).Rs 250/27) What is the maximum amount of withdrawal permitted for a KVB Prestige account
holder at Non-base branches?
a). Rs 10,000/b). Rs 50,000/c).Rs 1,00,000/d any amount
28) Minimum balance violation charges for KVB Yuvasakthi & KVB Freedom is
Rs.__________
a) Rs.25/b) Rs.50/c) Rs.100/d) Rs.250/29) The maximum ceiling limit for deposits extending preferential rate of interest to senior
citizen deposits is Rs. __________ in aggregate per depositor.
a) 1 Crore
b) 5 crore
c) 10 crore
d) None of these
30) What is the maximum amount of TOD allowed in our KVB Grama Jothi account?
a) Over draft is not allowed
b) Rs 1000/c) Rs 2500/d) Rs 5000/31) The maximum and minimum amount of deposit in KVB Tax Shield deposit is.
a. Rs.1 lac & Rs.100
b. Rs.10 lacs & Rs.1 lac
c. Rs.5 lacs & Rs.50
d. no limit

32) A person opens a FD of Rs 1,00,000 for 2 years at the rate of interest 10.00%. He also
avails loan for Rs 75,000. After 181days he has pre-closed the deposit. The interest payable
on FD for 181 days is 7.65 %. What is the applicable rate of interest for the deposit loan?
a. 12.00%
b. 11.00%
c. 9.65%
d. 8.65%
33) Can we accept Term Deposits in the Joint names of 3 or more persons with payment
instructions as E or S?
a. Yes, we can open at Mangers Discretionary Power(MDP)
b. No, E or S accounts are opened only by two joint account holder
c. Yes, we can open the account after obtaining permission from CO
d. Yes, we can open the account after obtaining permission from DO
34) In Kalpatharu account the balance should not exceed Rs at any point of time and
the aggregate total credits not to exceed Rs..in a year.
a. 40000/- and 80000/b. 50000/- and 100000/c. 100000/- and 200000/d. No such limit, not applicable.

35) In Joint Hindu Family (HUF) the eldest _____in the family becomes the Karta
a. male member
b. Female member
c. either male or female member
d. None of the above
36) Mr. A has withdrawn Rs.5 lakh from his regular current account at the base branch.
What is the charge applicable to this withdrawal?
a. Any amount of withdrawal from base branch is free.
b. Rs 500/c. Rs.200/d. Rs 300/37) PAN is to be obtained:
a. When the total cash remitted in an account even by way of separate
challans works out to Rs.50,000/- and above on any day.
b. Only when the amount of single cash challan is for Rs. 50,000/- and above
c. Only when cash DD is issued for an amount exceeding Rs.50,000/d. None of the above.
38) If an over due deposit is renewed within 14 days from the due date, the rate of interest
prevailing on..
a. due date will be given
b. date of original deposit will be given
c. either a or b as per customer request
d. none of the above
39) For a Freedom savings account holder, we are allowing free cash remittance facility of
Upto Rs._______p.m at non-base branches
a) 10,000/b) 25,000/c) 50,000/d) 75,000/-

40) Newly opened branches can open the accounts without obtaining introduction from the
existing customers for the first ..months. They are permitted to get the introduction
by.
a. 6, staff members
b. 12, staff members
c. 12, respectable persons
d. none of the above
41) . cheque leaves are issued free per annum for a current account holder who
maintains Rs.MAB. 25000/a. 100
b. 250
c. 500
d. unlimited
42) The maximum permissible loan amount for NRIs Rs..
a) 20 lacs
b) 50 lacs
c) 100 lacs

d) 150 lacs

43) If the low income group people want to open bank account under simplified KYC
norms, those persons are to keep balances not exceeding Rs._________ in all their accounts
taken together and total credit in all accounts taken together is should not exceed
Rs.___________ in a financial year.
a) 1,00,000 & 5,00,000
b) 10,000 & 50,000
c) 50,000 & 1,00,000
d) 5,000 & 50,000
44) E or S clause is a ..clause for current account/savings account but for all term
deposit accounts it is a ..clause.
a. payment, operational
b. operational, payment
c. guiding, payment
d. guiding, operational
45) What is the present CRR & SLR?
a. 5.75%, 25%
b. 6%, 24%

c. 6.25%, 25%

d. 6%, 25%

46) What is the minimum period for NRE fixed deposit?

a. One year
b. 6 months
c. 3 months
d. 15 days
47) TDS is not applicable on the interest credited / accrued on..deposits irrespective of
the interest amount involved.
a. TTT
b. fixed deposit
c. Manimala
d. Tax shield
48) Free accident Insurance cover for Rsis a feature of Rainbow Savings a/c.
a. 100000/b. 150000/c. 200000/d. 250000/49) A is already having account with us. He wants to open another account in the joint
names of A & B. Is it in order to get A`s introduction for this account?
a. Yes
b. Yes, if A is having satisfactory transaction for a period of minimum six
months
c. No, should be introduced by some other account holder

d. At the discretion of branch head.

50) If an over due deposit is renewed within 14 days from the due date, the rate of interest
prevailing on _______
a) due date will be given
b) date of original deposit will be given
c) either a or b as per customer request
d) either a or b as per managers discretion
51) Articles of association of a company describes____________
a. Scope and objectives of the company
b. Bye- laws for internal management of the company
c. Details about the promoters
d. All the above
52) The minimum number of accounts that can be opened for employees of reputed
organization under smart saving Bank deposit scheme is __________
a. 10
b. 25
c. 50
d. None of the above

53) A Private Ltd Company can be formed with a minimum of ________ members and
maximum of ______________ members.
a. 2, 50
b.7, 50
c. 2, 20
d. 7, unlimited
54) Fixed deposits opened with F or S Clause are to be paid _______ on maturity.
a. Jointly
b. Former
c. One of the a/c holder
d. None of the above
55) The partnership firm need not be dissolved on __________
a. expiry of a partner b. retirement of a partner
c. A minor partner attaining the age of majority
d. Insolvency of a partner
56) If a fixed deposit matures and proceeds are unpaid, the amount left unclaimed with the bank
will attract .
a) SB rate of interest
b) FD rate of interest
c) Not eligible for any interest
d) FD interest at the date of closure
57) The Deposits in Schedule Commercial Banks (SCB) are insured with ___________ and
the maximum cover available for an individual depositor is for Rs______ per bank.
a. IBA, 1 lakh
b.IBA, 5 lakhs
c. DICGC, 1 lakh
d. FEDAI, 1 lakh
58) Fixed deposit is.Instrument
a) A Negotiable
b) a Quasi Negotiable
c) Not Negotiable
d) Transferable

59) The maximum number of individuals permitted in a joint deposit A/C is.
a) 2
b) 3
c) 4
d) no maximum

60) __________is an instrument in writing signed by the maker, with unconditional order, directing
a certain person to pay a certain sum of money to or to the order of a person or bearer of the
instrument
a) Bill of Exchange
b)Promissory Note
c) Both the above
d)s None of the above
61) Branch can open current A/C of partnership firm if the firm is
a) Registered one
b) Unregistered one
c) Either registered or Unregistered
d)None of the above
62) For opening a new current A/C for individual /partnership firm, introduction is to be obtained
from
a) a SB A/C holder with satisfactory operations
b) a CA A/C holder with satisfactory operations
c) the manager of the branch only
d) all of the above
63) KVB Student SB account can be opened in the individual name of a student of age
above and below years.
a. 10, 18
b. 12, 18
c. 12, 23
d. 10, 23
64) As per RBI guidelines a person who has completed the age of ..years will be
considered as a senior citizen for getting the special benefits in interest on deposits.
a. 58
b. 60
c. 65
d. none of these
65) Which of the following facility is not available for the current account customer?
a) Mobile banking
b) Visa Debit card
c) Internet banking
d) Add on card
66) A depositor can nominate..as nominee.
(i) an individual
(ii). trust
(iii). company (iv) two individuals
a) (i) only

b) (i) & (iv) only

c) (i) (ii) (iii)

d) any of the above

67) .. ..is a bill of exchange drawn on a specified banker and not expressed to be
payable otherwise than on demand.
a. cheque
b. promissory note
c. bank instrument
d. none of the above

68) Our Bank accepts term deposits from Individuals / Joint account holders for a
minimum period of ..days to maximum period of ..months for a minor account.
a. 15, 60
b. 14, 120
c. 7, 240
d. 8, 240
69) Customers are facilitated to withdraw or deposit a maximum of Rs _____per day
through the Business Correspondents (BCs) in KVB Grama Jyothi a/c?
a) 250
b)500
c)1000
d)2000
70) What is the maximum cash holding limit permitted for Business Correspondents?
a) Rs 5000/b) Rs 10,000/c)Rs 25,000/d) Rs 50,000/71) With reference to our KVB Grama Jyothi account, ------- (maximum) number of
transaction is/are permitted in a day .
a) one
b) Three
c) Five
d) No Restrictions.
72) The interest on SB a/c is credited on a Half Yearly Basis in the month of September &
March of every year at the rate of..% P.A. The interest calculation is based on
balance basis.
a) 3.5, monthly
b) 4, monthly average
c) 4 , daily
d) 3.5, minimum
73) Which of the following saving accounts, we can open with zero balance?
i. KVB prestige
ii. KVB yuvasakthi
iii.KVB Freedom
iv.KVB smart
v. KVB kalpatharu
vi. Grama Jyothi
a. all accounts
c. (iii),(iv), (v) & (vi)

b.(ii) & (vi)

d. (ii), (iv) & (vi)

74) ABC & Co, is a partnership having a Multicity current account with us. A and B are the
authorized persons to operate the account, Rs. 5,00,000 cheque has been issued by the
company to third party. C one of the partners has given a stop payment request letter to the
Bank. In this case, how should Bank react?
a. Only A and B are authorized to stop
b. C has no right to stop
c. Bank should accept, C can also give stop payment instructions
d. None of the above
75)

Penalty for delay in payment of monthly instalment under Manimala deposit scheme
is __________
a) Re1 for every Rs100 p.m for deposit upto a period of 5 yrs and Rs1.50 p.m
for a deposit of 5 yrs and above
b) Rs.1.5 for every Rs100 p. m upto 5 yrs and Rs2 for every Rs100 p.m for
5 yrs and above.
c) Rs 2.00 for everyRs100 p.m upto 5 yrs and Rs2.5 for every Rs100 for 5
yrs and above.
d) Rs 3.00 for everyRs100 p.m upto 5 yrs and Rs3.5 for every Rs100 for 5

yrs and above.

76) To start the business activities, a Public Limited Company should obtain________
a) Certificate of commencement of business
b) Certificate of incorporation
c) sales tax assessment order
d) Correspondent Banker
77) Interest is calculated on SB account on ___________ with effect from 1.4.2010
a) daily product method
b) minimum balance maintained between 10th & end of the month
c) quarterly basis
d) average balance in amonth
78) What is Present Bank Rate?
a) 3%
b) 6%

c) 7.5%

d) None of the above

79) Mr. Jayaraman maintains a SB account with your bank. He has given a POA to his son,
to operate his SB account. The relationship between the bank and Mr.Jayaraman is:
a) debtor and creditor
c) donor and donee

b) principal and agent

d) none of the above

80) You receive a clearing cheque in an overdraft account for Rs.27,000/-.The debit
balance in the account is Rs.30,000/- and the OD limit is Rs 55,000/-.What reason you will
state while returning
a) Refer to drawer
b) Insufficient funds
c) Exceeds arrangement
d) Effects Not cleared
81) What is the rate of TDS for interest on FCNR deposits?
a). 10%
b) 20%
c) 35%
d) No TDS is applicable
82) Which one of the following is not correct with reference to NR deposit accounts?
a. Nomination facility is available
b. Any person in India can operate a NR account if he obtains a separate
mandate letter or power of attorney from the NRI Customer/s
c. A Person resident in Bhutan and Nepal can open NRE Accounts / FCNR
deposits
d. A FCNR deposit in one currency can be converted to a deposit in another
currency during the period of the deposit.
83) Which one of the following statement is not correct with respect to NRE account?
a. The account should be opened by the non resident account holder himself
and not by the holder of power of attorney

b. Opening of account in the name of individuals / entities of Bangaladesh /

Pakistan nationality / Ownership requires approval of RBI
c. NRE accounts can be permitted to be maintained in foreign currencies
d. Opening of NRE accounts jointly with a resident is not permissible
84) We should open a account to Foreigners temporarily visiting India
or foreign tourists
a) NRO
b) NRE
c) Resident
d) FCNR
85) We should open a. account to Foreigner living permanently in India
and foreigner employed in India
a) NRO
b) NRE
c) RFC
d) domestic deposit account
86) From the following age group, which group is suitable to open the Freedom savings
account?
a) 20 to 35 years
b) 25 to 35 years
c) 18 to 35 years
d) No age restriction any body can open
87) Which one of the following accounts has restricted repatriation facility?
a. RFC
b. NRE account
c. FCNR
d. NRO
88) Foreign Nationals visiting India as Tourist can open:
a. NRE Accounts
b. FCNR Accounts
c. Domestic SB accounts
d. NRO Accounts
89) The minimum period of NRE and FCNR term deposit is .
a) 8 days
b) 90day
c) 181 days or more than 6 months onwards
d) one year
90) We cannot accept FCNR B deposits in --------a) Euro
b) Singapore dollar
c) US dollar
d) UK Pound Sterling

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