Loans and advance s including balance sheet

LOANS AND ADVANCES INCLUDING BALANCE SHEET ANALYSIS



1. ˜Credit Rating Agencies in India are regulated by: RBI

2. ˜CRISIL stands for: Credit Rating Information Services of India Ltd.

3. ˜Deferred Payment Guarantee is : Guarantee issued

when payment by applicant of guarantee is to be made in installments over a period of time.

4. ˜If Break Even Point is high, it can be construed that the margin of safety is ____: Low.

5. ˜Long Term uses – 12; total Assets – 30; Long Term source 16; What is net working capital : 4

6. ˜On which one of the following assets, depreciation is applied on Straight line method: Computers.

7. ˜Projected Turnover is Rs.400 lacs, margin by promoter is Rs. 20 lacs. What is maximum bank

finance as per Annual Projected Turnover method: 80 lakhs.

8. ˜Rohit was a loanee of the branch and news has come that he has expired. On enquiry, it was

observed that he left some assets. Upto what extent the legal heirs are liable to the Bank? Legal heirs are

liable for the liabilities upto the assets inherited by them.

9. ˜The appraisal of Deferred Payment Guarantee is same as that of a) Demand Loan b) OD c) Term

Loan d) CC : Term Loan.

10. A cash credit account will be treated as NPA if the CC limit is not renewed within ___days from the

due date of renewal: 180 days.

11. A director of a bank wants to raise loan of Rs 10 lakh from his bank against Life Insurance Policy with

surrender value of more than Rs 15 lakh. What will be done?: Bank can sanction.

12. A firm is allowed a limit of Rs.1.40 lac at 30% margin. It wants to avail the limit fully. How much will

be the value of security : Rs.2 lac

13. A guarantee issued for a series of transactions is called: Continuing guarantee

14. A lady who has taken a demand loan against FD come to the branch and wants to add name of her

minor son, as joint a/c holder. What you will do?: Name can be added only after adjustment of the loan.

15. A letter of credit which is issued on request of the beneficiary in favour of his supplier: Back to Back

LC

16. A loan is given by the bank on hypothecation of stock to Mr. A. Bank receives seizure order from

State Govt. What should bank do?: Bank will first adjust its dues and surplus if any wilt be shared with

the Govt.

17. A loan was sanctioned against a vacant land. Subsequently a house was constructed at the site.

What security is available now to the bank? : Both

18. A minor was given loan. On attaining majority he acknowledges having taken loan and promises to

pay. Whether the loan can be recovered? : He can not ratify the contract. Hence recovery not possible.

19. A negotiating bank and issuing bank are allowed days each for scrutiny of documents drawn

under Letter of credit to ensure that documents are as per LC: 5 banking days each.

20. Age limit staff housing loan: 70 years;

21. An L/C is expiring on 10.05.2008. A commotion takes place in the area and bank could not open.

Under these circumstances can the LC be negotiated?: The L/C can not be negotiated because expiry date

of LC can not be extended if banks are closed for reasons beyond their control.

22. As per internal policy of certain banks, the net worth of a firm does not include: a. Paid up capital b.

Free Reserve c. Share Premium d. Equity received from Foreign Investor : Revaluation Reserves

23. Authorised capital is Rs.10 lac. Paid up capital Rs.6 lac. The loss of previous year is Rs.1 lac. Loss in

current year is Rs3 _ lac. The tangible net worth is : Rs.2 lac

24. Authorised capital= 10 lac, paid-up capital = 60%, loss during current year = 50000, loss last year =

2 lacs, what is the tangible net worth of the company? : 3.5 lac

25. Bailment of goods by a person to another person, to secure a loan is called : Pledge

26. Balance outstanding in a CC limit is Rs.9 lakh. Value of stock is Rs.5 lakhs. It is in doubtfUl for more

than two years as on 31 March 2012. What is the amount of provision to be made on 31-03-2013?: Rs.9

lakhs (100% of liability as account is doubtful for more than 3 years)

27. Balance Sheet of a firm indicates which of the following – Balance Sheet indicates what a firm

owes and what a firm owns as on a particular date.

28. Bank limit for working capital based on turn over method: 20% of the projected sales turnover

accepted by Banks

29. Banks are required to declare their financial results quarterly as per provisions of : SEBI

30. Banks are required to maintain -a margin of ___ for issuing Guarantee favouring stock exchange on

behalf of share Brokers.

31. Banks are required to obtain audited financial papers from non corporate borrowers for granting

working capital limit of: Rs.25 lakh &above

32. Banks provide term loans and deferred payment guarantee to finance capital assets like plant and

machinery. What is the difference between these two: Outlay of funds.

33. Benchmark Current Ratio under turn over method is: 1.25

34. Break Even Point: No profit no loss. ( TR-TC=Zero)

35. Calculate Debt Equity ratio – Debenture – Rs 200, capital 50; reserves – 80; P& L account credit

balance – Rs 20: 4: 3 ( 200 divided by 150).

36. Calculate Net working capital– Total assets 1000; Long Term liabilities 400; Fixed assets, Intangible

assets and Non current assets (i.e. long term uses) Rs 350; What is net working capital : 400- 350= Rs

50

37. Calculate Tangible Net Worth: Land and building: 200 Lacs; Capital:80000 intangible asset:15000:



65,000

38. CALCULATION OF INTEREST IN LOAN ACCOUNT: MONTHLY

39. CARE stands for : Credit Analysis & Research Ltd

40. Cash Budget method is used for sanctioning working capital limits to : Seasonal Industries

41. CC limit Rs 4 lacs. Stock 6 lacs. Margin 25% . What is drawing power? : NOTIONAL - 4.5 lacs, BUT

ACTUAL Rs. 4 LAC.

42. Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) is a

government company licensed under Section 25 of the Companies Act, has been incorporated to operate

and maintain the Central Registry under the provisions of _____: SARFAESI Act 2002.

43. CIBIL is the agency that provides information to the member banks on (i) Credit Rating (ii)

Information on credit History: Information on Credit History of borrowers

44. Contribution means : profit + fixed cost

45. Current Assets 600, Long Term sources - 600, Total Assests1000, what is NWC and Current Ratio: CR

1.5 : 1; NWC = 200 .

46. Current Liabilities are those liabilities which are to be paid: within one Year

47. Current Ratio = 2:1, Net working Capital=60000, What is the Current Liability of the firm? : 60000

48. Current ratio indicates: Liquidity of the firm (ability of a firm to pay current liabilities in time)

49. Current Ratio is 1.33:1, Current Assets is 100, what will be the amount of Current Liability: 75 lakhs

Compiled by Sanjay Kumar Trivedy, Divisional Manager, Canara Bank, Govt. Link Cell, Nagpur 138 | P a g e

50. Debt Equity Ratio indicates: Long term solvency or capital structure of the firm.

51. Debt Securitization refers to: Conversion of receivables into debt instruments.

52. Debt Service coverage ratio is used for: Sanction of Term Loans

53. Deferred Payment guarantee is: Financial Guarantee

54. Deferred payment guarantee issued by a bank is a : Contingent Liability.

55. Difference between Long Term Source and Long Term Use is called: Net Working capital.

56. DSCR indicates: Ability of firm to repay term loan instalments

57. DSCR is for evaluating: Term Loan repayment-surplus generating capacity.

58. Duty of confirming bank: Only to verify the genuineness of L/C.

59. Equitable Mortgage is created by deposit of title deeds with bank at – (a) any where in India; (b)

state capital; (c) only at Mumbai, Chennai or Kolkatta; (d) Any place notified by state government for this

purpose: Correct answer is (d).

60. Excess of current liability over current assets means the firm may face difficulties in meeting its

financial obligations in short term.

61. Expand CRILC: Central Repository of Information on large credits.

62. Expand IRR : Internal Rate of Return

63. Finance for construction of road and port is classified as: Infrastructure Finance.

64. For ascertaining that a firm will be able to generate sufficient profit to repay instalments of term

loan, which ratio is computed?: Debt Service Coverage Ratio

65. For assessing Fund Based Working Capital limit for MSME upto _______Turnover method is followed

under Nayak committee: Rs.5 crore.

66. For classification of assets in consortium accounts, which of the following is to be considered?: In

consortium accounts, each bank will classify the account as per its record of recovery.

67. For Takeover of accounts from other Banks, the account copies of all the borrower accounts with the

present bankers / financial institution shall be obtained at least for the last ______: 12 months.

68. Formation of consortium, when essential : When bank touches its exposure ceiling

69. Full form of DSCR: Debt Service coverage ratio;

70. Gold is pledged with bank as security for a Bank Guarantee by a borrower. Bank Guarantee stands

expired. Whether a temporary overdraft availed by the borrower which is overdue can be got adjusted by

selling the Gold held as security for issue of guarantee: Yes, because Bankers lien is a general lien and is

an implied pledge. Further, the Gold was deposited in the ordinary course of business.

71. Green field project is related to : setting up new projects

72. Guarantee issued by a bank in favour of Custom department that party will fulfill export obligation for

availing exemption from custom duty regarding tax. Such guarantee is called: Financial Guarantee

73. Guarantee issued by a bank which is still outstanding is shown in the Balance Sheet as: Contingent

Liability.

74. Guarantors Liability: Recall the a/c and cause demand against the borrower and guarantor. Balance

in guarantor's SB a/c cannot be appropriated directly.

75. Holiday period given for repayment of installements in a loan is termed as: Moratorium period

76. How DSCR is calculated?: (Profitafter tax + Depreciation + Interest on Term Loan) divided by (Annual

instalment of term loan+ interest on term loan)

77. How much additional risk weight has been provided on restructured loans?: 25%

78. Hypothecation can be converted to pledge by: taking possession with the consent of the borrower.

79. Hypothecation described under SARFEASI Act.

80. If a businessman start a business with a Capital investment of Rs.3,00,000/- and withdraw

Rs.25,000/- later. If Net Profit is Rs.1,20,000/- and income tax paid thereon is Rs.30,000/-, what is the

position of capital account (net worth) at the end of the year – 395000; 365000; 360000; nil:

Rs.3,65,000/-

81. If a LC contains a clause "about" regarding the amount and quantity of goods, how much tolerance is

permitted?: 10%

82. If current ratio is 2:1, net working capital is Rs 20,000, current asset will be: Rs 40,000

83. If debtors are Rs 4 lac, annual sale is 60 lac, what is the Debt collection period: 0.8 months

84. If Debtors velocity ratio increases, it means debt collection period has increased or sales have

decreased.

85. If documents are to be presented in about July month: these can be presented within 5 days before

or 5 days after.

86. If in a Guarantee issued is silent, what will be the limitation period: 3 yrs and in case of Govt

guarantee it is 30 years.

87. If in a LC words around is written with date then variation of is allowed in the period: +/- 5 calendar

days

88. If limit is 3 lacs, margin is 25% what should be stock to avail full limit?: Rs4 lac

89. If on a letter of credit it is not mentioned whether it is revocable or irrevocable, then as UCPDC 600, it

will be treated as : Irrevocable LC

90. If on a Letter of Credit, date is mentioned as "end of the month", then as per UCPDC 600, it will

mean: 21st to last day of the month.

91. If stock statement is not submitted for 3 months from its due date and DP is allowed on the basis of



old stock report, then the account will be considered NPA after:90 days

92. If the projected sale of a-small (manufacturing) enterprise is Rs 80 lakh, margin available with the

borrower is Rs 4 lakh, then as per turnover method, working capital limit will be: Rs 16 lakh.

93. If working capital limit to a borrower is Rs 10 crore and above, then as per RBI guidelines, the loan

component should be at least: as per bank's discretion.(earlier it used to be 80%).

94. In a company, the registration of charges is required for: a)loan against FD b)lien on Govt Securities

c) assignment of Book Debts d) lien on Shares : Book Debts

95. In A current account OD of Rs. 12000 is made. The FDR has become due later on if the right of

appropriation can be used. The borrower has objected that he never requested for overdraft, hence

payment can not be appropriated. The customer is right.

96. In a letter of credit, it is written that documents can be negotiated about 30th June. In this case, the

documents can be negotiated: Before or after 5 clays of 30th June.

97. In case of a loan under consortium, each bank can have Maximum working capital limit of Rs-No

rule in this regard. Rules of consortium to be framed by members of consortium.

98. In case of loan given by more than one bank under a consortium, how the asset classification is done

by various banks?: Each bank will classify the account based on its record of recovery.

99. In case of revaluation of fixed assets, what percentage of revaluation reserve will be added to Tier

II capital of the bank?: 45%

100. In Letter Of Credit jmporter is called: Opener of Letter of Credit

101. In project finance, Debt Equity Ratio requirement for other than Infrastructure finance is: 2:1

102. In respect of a project report, the feasibility which is given least importance by the preparers of the

report, but very important for a banker is : a) Commercial b) Technical c) economic d) financial Ans: C

103. In the Balance Sheet of a bank, Contingent Liabilities are shown as: footnote to the Balance Sheet.

104. In the case of advance to a limited company for purchase of vehicle, the charge is registered with

Regional Transport Authority in addition to registration of charge with. Registrar of Companies. Why this is

done?:So that borrower can not sell the vehicle without intimation to the bank

105. Interest rate on advances is related to – Bank rate; Base Rate; PLR: MCLR Rate

106. Limit sanctioned Rs 5 lac; Stock Rs 6 lac; Margin 25%; What will be Drawing power: Rs 4.5 lac

107. Loan Delivery System is not applicable to: a) Loan to Soft ware industry b) export credit: export

credit

108. Loan Delivery System suggested by Rashid Mani Committee is applicable on borrowers with working

capital limits of: Rs 10 crore and above

109. Loan is in the name of A&B. Both have signed documents. A signs the Balance Confirmation but B

does not. In this case limitation will extend against: both

110. Lorry Receipts issued by Transport Operators approved by IBA are preferred. The reason is the

Transport Operators will take care of: Carriers Risk.

111. Stand by LC is just like : Financial guarantee (A guarantee of payment issued by a bank on behalf of a

client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with

a third party. Standby letters of credit are created as a sign of good faith in business transactions, and are

proof of a buyer's credit quality and repayment abilities)

112. Standard Score under CIBIL: 300 to 900

113. Stock Audit is required in respect of loans of : Rs.1.00 crore & above

114. Subordinate Debt is shown as part of in the Balance Sheet of a bank: Other Liabilities and

Provisions

115. Tangible Net Worth (TNW) is calculated as: Total paid up capital + Reserves – Intangible Assets.

116. The appraisal of deferred payment guarantee is similar to term loan: The difference is outlay of funds.

117. THE APPRAISAL OF DEFERRED PAYMENT GUARANTEE IS SIMILAR TO: TERM LOAN

118. The Audited Balance sheet for the latest financial year is to be obtained within ______ to finalise

credit rating and re-fix interest accordingly: 6 months.

119. The Bank did not disclose all material facts regarding loan to the guarantor while obtaining

guarantee. Can guarantor escape liability?: Guarantor cannot escape from his liability as it is not

necessary to disclose all the materials facts with regards to the loan.

120. The Borrower has to bring funds as his contribution for loan from: Long term Sources

121. The charge on stocks is created by: Hypothecation ( also by pledge or lien)

122. The concept of Base Rate is not applicable in the case of: Loan against Bank’s own deposit

123. The limitations of financial statements are : only quantitative not qualitative.

124. The long term liability to tangible net worth ratio implies : Long term solvency of the firm .

125. The main distinction between Hypothecation and Pledge is on accountof : Possession

126. The Meaning of Debtor Velocity Ratio is: Cycle of Debt Collection Period

127. The procedure used for ascertaining Customers Credit worth is called: Credit Rating

128. Time Limit for registration of equitable mortgage with CERSAI: 30 days from date of deposit of

title deeds. (Normally 30days and then delay can be condoned up to 30days on payment of penalty).

129. To improve Current Ratio of 2:1, what has to be done? a) Recover cash from Receivables b) Cash

sales c) Decrease the Bills payables.

130. Total Indebtedness Ratio is represented by: Total outside liabilities divided by Tangible Net Worth

131. What is "pari passu" means: Sharing in the ratio of outstanding.

132. What is a Break even point-The level of sales at which a firm does not earn any profit and does not

incur any loss.

133. What is cash loss : net loss before depreciation (Net loss minus depreciation)

134. What is Deffered Payment Guarantee?: Guarantee issued when payment by applicant of

guarantee is to be made in instalments over a period of time.

135. What is Mortgage? Transfer of interest in specific immovable property to secure an existing

or future debt.

136. What is nature of Banker's Lien?: It is implied pledge because Banker can dispose-off the goods after

giving notice to the borrower.

137. What is Pari Passu charge?: In case of consortium advance sale proceeds of security will be

shared among banks in proportion to their outstanding.

138. What is Real Rate of Interest?: Prevailing interest rate minus inflation rate

139. What is the meaning of Group in Exposure Norms: Commonality of management & Effective Control

140. What is the relationship between bank and customers in case of overdraft?: Creditor and Debtor

141. What is the risk weight for Personal Loans? 125%

142. What is the risk weight for Unrated companies?: 100%

143. What is the type of liability for the bank on account of issue of Bank Guarantee?: Contingent Liability

144. What type of bank gaurentee bank gives when a customer purchases a machine on instalment basis?:

Deferred Payment guarantee.

145. What type of Guarantee is Deffered Payment Guarantee: Financial Guarantee

146. What type of liability is represented by Bank Guarantee?: Contingent Liability and shown as a

footnote in the Balance Sheet.

147. What will be the tangible net worth if total assets are Rs 35 crore; total outside liability Rs 30 crore;

intangible assets Rs 3 crore: Rs 2 crore

148. What will happen in case of negative working capital limit: Current Liabilities are more than

Current Assets

149. Which is not a Credit Rating Agency – CRISIL, CARE, SMERA, ICRA, CIBIL: CIBIL

150. Which is not found in operating expenses statement of P&L statement - Salaries, Rent, Power: Power

151. Which is not included in Contingent liability – Bank Guarantee; Letter of Credit; Forward Contract;

Bills Payable: Bills payable

152. Which of the following is a contingent liability – deposits, borrowings, capital, guarantee: Bank

Guarantee

153. Which of the following is a Credit Information company – CIBIL, FIMDA, AMFI, CRISIL: CRISIL

154. Which of the following is part of the Solvency Ratios: debt equity ratio.

155. Which of the following represent Debt Service Coverage Ratio: (Net Profit after tax + Depreciation

+ Interest on Term loan) divided by (Annual instalment of term loan + interest on term loan)

156. Which of the items will not be an asset in banks bal sheet: Advances/Fixed Asset / Deposits :

Deposits

157. Which one of following is credit information company?: Equifax

158. Which system replaced Benchmark Prime Lending rate in banks: Base Rate

159. While arriving Drawing Power for financing against book debts, only Book Debts _____and below are

to be taken in to consideration. (other than MSME advances): 90 days

160. While doing Project Appraisal, sensitivity analysis is useful for: Viability and sustainability of project.

161. While financing for TL, Bank should look for the ability of the firm to generate the income to service

the debt

162. While granting loans to a partnership, banks generally insist that the firm should be registered

whereas registration of a partnership firm is optional. What is the reason for the same?: An

unregistered firm can not sue its debtors for recovery of its dues whereas other can sue the

firm for recovery of their dues

163. While undertaking technical appraisal, the following is not considered: cost of production and sales (it

is used for economic viability).

164. Who is bound to file particulars of charge with the Registrar of Companies under MCA 21, when a

company creates charge of somebody on its movable or immovable property except by way of

pledge?: officials of the company.

165. Why banks do not grant loan to a minor?: A minor is not competent to contract Therefore, Ioan given

to a minor can not be recovered.

166. Why banks ensure that charge created on any asset of the company should be registered with ROC

within stipulated period?: If charge is not registered, bank will become unsecured creditor.

167. Why banks prefer financing of bills?: because the advance is self liquidating

168. Why fund flow statement is taken from the borrower?: To know sources from where funds have been

raised and how funds have been utilized and to know changes in net working capital position.

169. Why loan against Partly Paid Shares are not preferred by banks?: Because partly paid shares

represent contingent liability. In case company makes demand and the borrower does not pay the

amount then the bank will have to pay the amount otherwise share may be forfeited. Moreover it is

prohibited by RBI

170. Working capital requirement of a firm is required to be met through : Short term sources and surplus



of long term sources over long term uses

Jaiib legal last minute revision

JAIIB - LAST MINUTE JAIIB LEGAL IMPORTANT:: posted by anandrao sir

☑ 1. As per section 26 of the Negotiable Instruments Act, a Minor can draw, endorse, accept a negotiable instrument but he can not : bind himself

☑ 2. A has granted Irrevocable Power of Attorney in favour of B for one year. After 3 months, A revokes the Power of Attorney. A cheque signed by B is presented for payment_ What will you do? The cheque will not be paid because POA can be withdrawn before maturity and once it is revoked, no cheque signed by agent can be debited to account of Principal

☑ 3. What is the Doctrine of Ultra Vires in the context of a limited company?: Any act by the directors beyond the object of the company is considered ultra vires the company and company is not bound by such act.

☑ 4. A minor who was admitted to the benefits of partnership has become major. Within how much period, he has to decide to remain partner in the firm or not?: within 6 months of attaining majority or 6 months of knowing that he is the partner in the firm whichever is later.

☑ 5. If on a cheque words "Account Payee" is written between two parallel lines or with the name of a bank, then: the cheque can not be endorsed.

☑ 6. Which type of crossing is required to be done if the drawer wants that in case of endorsement, the title of transferee of the cheque should not be better than the title of the transferor: Not Negotiable Crossing

☑ 7. In the case of dishonour of a cheque due to insufficient funds, for enforcing rights under section 138 of the Negotiable Instruments Act 1881, the holder should send a notice to the drawer within: 30 days from the date of receipt of notice regarding dishonour of the instrument.

☑ 8. The Limitation period for filing case in case of dishonour of cheque due to insufficient funds is: 1 month from the date of cause of action.

☑ 9. Objectives for which a company has been formed are given in: Memorandum of Association

☑ 10. Full form of BCBS is Basel Committee on Banking Supervision.

☑ 11. Direct Impact of increase in CRR is : Controlling Liquidity

☑ 12. Banks can not issue Demand Draft payable to Bearer as per provisions of : Section 31 of the RBI Act

☑ 13. Grace Period is allowed in the case of : Usance Bills and Usance Promissory Notes

☑ 14. Indian Banks are required tomaintainminimumCapital AdequacyRatio of : 9%

☑ 15. In the case of individuals and HUF, tax will be deducted at source if the interest on term deposit in a financial year is : more than Rs 10,000

☑ 16. If Power of Attorney is executed outside India it should be stamped within:90 days of its first arrival in India

☑ 17. For its implementation, the complainant should accept the award given by Ombudsman within: 30 days of the receipt of the copy of the award.

☑ 18. When proceeds of cheque are given before clearance of the cheque the banker will be called: Holder for Value

☑ 19. In the case ofWrongful dishonour of cheque, towhomthe bank is liable?:Drawer

☑ 20. If date on a cheque is prior to the date of its presentation, it is called: Ante Dated cheque

☑ 21. What isminor's liability in HUF Account:Minor is not liable

☑ 22. When does the right of nominee starts in respect of a deposit account?: After death of all depositors

☑ 23. For injectingmoney in themarket which type of transaction is undertaken?: (a) Repo (b) ReverseRepo

☑ 24. RBI controlsmoney supply through: change in CRR

☑ 25. Loan given to a director can be waived: after ermission of RBI.

☑ 26. Under the Ombudsmen scheme, the Bank has to reply to the objection of the complainant within: one month

☑ 27. A post dated cheque is passed in the account of a customer. But another cheque which was in order was dishonoured due to insufficient funds. What is the liability of the Banker?: Bank is liable to the drawer for paying post dated cheque as bank is not justified in paying post dated cheque. The bank will be liable to drawer for damages on account of wrongful dishonour of cheque.

☑ 28. Which type of preferential shares are treated as part of Tier I capital of the Bank?: Perpetual Non Cumulative Preference Shares.

☑ 29. As per RBI guidelines, all banks are required classify business in various business segments with effect from 31-03-2008. The segments are: (a) Treasury (b)Corporate /Whole sale Banking, (c)Retail Banking, (d)Other Banking Business. The geographical segments are 'domestic' and 'international'.

☑ 30. Customer of your bank asks for cash payment of crossed DD. What would you do? Generally payment only through bank account. However, bank can pay after duly satisfying the genuineness of the draft and payee but bank will continue to be liable to true owner if recipient is not true owner.

☑ 31. A cheque is presented for payment in which the amount in words and figures is different. Bank
should pay which amount?: amount written in words will be paid.

☑ 32. Whether a Private Limited company can be a partner with Public Limited company to forma Partnership?Yes

☑ 33. In the context of Nomination, which is correct statement?:Signatures of nominee not required on nomination form. Nominee's name should be mentioned on FDR if agreed by the customer.

☑ 34. A bearer cheque of Rs.7,000/- was presented. The cashier informed that the cheque can not be passed as
the balance is less by Rs.700/-. The tenderer credited the amount of shortfall and the cheque was paid. Customer disputed the transaction. Whether bank is liable?: Yes. For disclosing balance to third party, bank is liable to account holder.

☑ 35. When an order passed by Banking Ombudsman is accepted by the complainant, the same should be complied within: 1 month from the date of receipt of acceptance from the complainant.

☑ 36. Penalty for delay is per day if information is not furnished within prescribed time under Right to Information Act: Rs. 250 per day with maximum being Rs. 25,000/

☑ 37. A crossed DD was paid by cash. What risk is there for the Bank: Bank will be liable to true owner of the DD if payment made to a person other than true owner (Section 129 of N I Act).

☑ 38. A cheque is written in English and Regional Language. Whether it can be paid?: Yes. A cheque written in different language can be paid if otherwise in order.

☑ 39. Who cannot become a partner in a firm as per Supreme court judgment HUF

☑ 40. Introducers liability / responsibility in case of an account holder defrauding Bank is : To assist the Bank in locating the a/c holder - does not have legal liability

☑ 41. Nomination -Minor can be a nominee.

☑ 42. Inoperative accounts: 2 Years&above not operated.

☑ 43. RTI Act - party seeking information need not disclose the reasons for which the information sought for.

☑ 44. Counterfeit notes returned after police verification, the same has to be preserved for 3 years subject to half yearly verification.

☑ 45. Validity period of cheque reduced to 3months from1.4.12 as per : RBI Guidelines under sec 35A of B R Act

☑ 46. Crossed cheque payment across the counter to the authorized Officer of collecting Bank - can be made and there are no violation as per NI Act. 255.

☑ 47. The consequence of non registration of Partnership - firm cannot sue others for its dues.

☑ 48. Banks are required to implement the award of Ombudsman unless a decision is taken to appeal against the same within one month from the date of receipt of acceptance of the award by the complainant.

☑ 49. Account holder A & B want to substitute their name with the name of their sons C & D in the account. What should the bank do?: Substitution of all names is not allowed. At least one of the original account holder should be retained in the account.

☑ 50. When only image of cheque is sent to the paying bank while sending cheque for collection instead of sending the physical cheque, the process is called: Cheque Truncation

☑ 51. A Cheque partly written in English &partly in regional language is presented for-payment What should the bank do?:May be paid, if otherwise in order and the language other than.English is the regional language of the area where the cheque is presented.

☑ 52. An authority has been granted in an account You have received information about the death of the Principal. Today, you receive a cheque signed by the agent which is dated prior to the death of the Principal.What should the bank do? : Cheque can not be paid as authority of agent comes to end with the death of the Principal.

☑ 53. You are maintaining current account in the name of the Trust.You receive notice of death of one of the trustees. After this notice, a cheque signed by the deceased trustee is presented for payment.What should the bank do?: Cheque may be paid, if otherwise in order.

☑ 54. As per Consumer Protection Act, the period for filing appeal to State Commission against decision of the District Forum is: maximum 30 days

☑ 55. Who can not be full fledged partner:Minor

☑ 56. Can Karta of HUF appoint Agent or delegate the powers to other co-parcener: Yes, he can do so.

☑ 57. Money deposited after receiving order may be attached in the case of: attachment order

☑ 58. Original & duplicate draft presented simultaneously for payment: Duplicate should be paid &
original should be returned.

☑ 59. Company has registered office at Delhi, factory at Kolkata & loan taken at Mumbai. For creating equitable mortgage title deeds can be deposited at: any notified city.

☑ 60. Reasons for avoiding advance to Un-Registered Partnership Firm: Firm can not sue against Any one for recovery of its debts but anyone can sue against the firm.

☑ 61. What is the effect of 'Not Negotiable Crossing'?: Transferee does not get better title than the transferor.

☑ 62. Payment of cheque can be stopped by: only Drawer of the cheque

☑ 63. Account payee crossing defined in:-Not defined anywhere

☑ 64. What is the current rate of interest paid on CRR?:NIL

☑ 65. How can be the transferability of Bill of exchange can be restricted? Bymaking restrictive endorsement

☑ 66. If on a Bill-of Exchange, two parallel lines are drawn and not negotiable is written between the lines,what kind of the crossing will be there: Provisions relating to crossing are not applicable to Bill of Exchange.

☑ 67. Within priority sector,what is the allocation to weaker section?: 25%

☑ 68. Maximum time with in which reply must be given under Right to information act? 30 days

☑ 69. What is the status of Nominee? Trustee of Legal heirs

☑ 70. Safe deposit vault is governed by provisions of: Transfer of Property act

☑ 71. A cheque signed by agent has been presented after his death for payment. What should the bank do?: The cheque will be paid if otherwise in order.

☑ 72. Purpose of star series notes: To replace defectively printed notes

☑ 73. Customer-bank relationship in locker account: Lessee-Lessor

☑ 74. Uptowhat amount District forumcan be approached under Consumer ProtectionAct?: Rs.20 Lacs

☑ 75. Appeal against the award of Ombudsman can be made by the bank within: 30 days of receiving the acceptance from the complainant.

☑ 76. Cheque issued by director of a company and presented after his death will be: Passed if in order

☑ 77. What would be the action of central bank in recession?: create liquidity by decreasing CRR and lower the repo rate.

☑ 78. Ante dated cheque like cheque dated 15.12.07 is presented for payment on 1.1.08 whereas_____ the account was opened on 20.12.07 : Cheque should be passed

☑ 79. If amount in words and figures differ on a cheque and amount written in words is higher than the amount written in figures, then as per sec.18 of NI Act, which amount should be paid?: amount written in words

☑ 80. Nomination facility is not available in the case of : Trust A/c.

☑ 81. customer service Committee meeting held on :Monthly basis

☑ 82. A person wants to open a joint account with his wife in such a way that the account can be operated by him only during his lifetime and she should be able to operate the account only after his death. The account has to be opened with the instructions: 'Former or survivor

☑ 83. For wrong ful dishonour of the cheque the bank is liable to: the drawer of the cheque

☑ 84. Banks print cheque books having similar particulars. The format of cheque is prescribed by which Act : Not defined in any Act. It is as per practice. CTS 2010 advised by RBI

☑ 85. Which crossing takes away the feature of assumption of defective free title available to the transferee : Not negotiable crossing

☑ 86. Who is appointed to tackle public complaints against the public authorities : Ombudsman

☑ 87. The facility of nomination is not available to Trust account because it is account : Non-individual (facility of nomination is available only in the case of individual(s).

☑ 88. The true owner of a cheque has been deprived of his right by collection of the cheque for a different person. This is called Conversion

☑ 89. As per recent RBI/Govt. guidelines, pensioners can open account jointly with: spouse, to be operated as either or survivor or former or survivor.

☑ 90. While paying a bearer cheque, signatures are obtained on the back side of the cheque. Why ? : As evidence of payment

☑ 91. Whether Minor can nominate ? no. On his behalf nomination will be done by a person legally competent to act on his behalf.

☑ 92. Cheque is dated before date of its presentation is called: Antedated cheque

☑ 93. An endorsement inwhich endorser excludes his liability is called : sans recourse

☑ 94. When a company is financed against the security of hypothecation ormortgage of its movable property, the company is required to file particulars of charge with: Registrar of Companies

☑ 95. Who is called as Holder as per N I Act?: Who is entitled to possession of the instrument in his own name (actual possession is not necessary).

☑ 96. If a cheque is dishonoured due to insufficient funds, then as per section 138 of N I Act, court may award imprisonment up to: 2years

☑ 97. On the face of a cheque, the name of a bank is written without two parallel lines. This will amount to : special crossing

☑ 98. A/c payee crossing is defined in : it is not defined in any Act. It is as per practice

☑ 99. Nomination facility for deposit accounts is available under: 45ZA&45 ZB of the BR act

☑ 100. Maximum amount of deposit which a bank may ask while allowing locker facility to a customer: Advance rent for 3 years and locker breaking charges

☑ 101. Asolicitor has account in his name and in the name of his client.Garnishee order is received in the name of the solicitor.Whether the samewill be applicable in the name of client also: No because two accounts are not in the same right and same capacity.

☑ 102. Which of the following is not amaterial alteration? Changing bearer to order

☑ 103. A bill issued without consideration is called: Accomodation Bill

☑ 104. There is a joint account in the name ofA&B.Acheque is drawn byAbut the alteration in the amount is authenticated by B.Whether bank can pay the cheque: Yes provided the operation is either or survivor.

☑ 105. The term used for conversion or transfer of property derived from a criminal offense for the purpose of concealing, or disguising, the illicit origin of the property is called: Money laundering

☑ 106. In which of the following situations bank will not be a holder in due course?: When bank credits the account of the customer after receipt of funds on account of cheque sent for collection

☑ 107. The rate at which RBI rediscounts the usance bills of banks is called: Bank Rate

☑ 108. In the case of IPO, the company is required to allot shares ormake refund within: 30 days of the closure of the issue in case of fixed price public issues; 15 days in case of book built issues and 15 days in case of right issues

☑ 112. Bank can charge collection charges of not more than for_outstation cheques of Rs.10000 to Rs1 lac in saving bank:Rs.100

☑ 113. Which of the following cheques can not be paid by the bank? : A cheque on which signatures of drawer have been forged irrespective of the cleverness in forgery and though these appear to be same as that of the drawer.

☑ 114. FIU stands for : Financial Intelligence Unit (India)

☑ 115. Two cheques have been presented to you as paying banker.One is dated prior to opening the account and other is dated prior to issue of cheque book.What will you do as paying banker?: Both chequeswill be paid.

☑ 116. KYC and FIU in India are associated with: preventing money laundering

☑ 117. Articles of Association mentions: directors' powers

☑ 118. Garnishee order is not applicable on: (a)cash received after two hours of receipt of Garnishee order (b) amount received for safe custody (c) undrawn balances in cash credit accounts

☑ 119. A person having locker has expired. The nominee comes. A sealed cover is found. What will you do ? : It will be delivered to him as part of locker contents without opening the packet.

☑ 120. A bill was presented on 10.5.2005 and accepted on 12.5.2005. The bill was due for payment on 29.07.2005 and was returned. The last date for filing suit in this case is : 29.07.2008

☑ 121. A listed bank has to prepare and publish balance sheet on quarterly basis as per: SEBI guidelines

☑ 122. There are certain instruments defined as negotiable instruments under lawand certain instruments used as negotiable instruments as per practice.Which of the following is not a negotiable instrument as perNI Act: Dividend warrant

☑ 123. On repayment of_debt of a company, satisfaction of charge shbuld be filedwith ROCwithin: 30 days

☑ 124. A Trust Deed is silent about loans by the trust. The trustee approaches for a loan. Under these circumstances what should the bank do?: No loan can be raised

☑ 125. Which of the following un/under-stamped document can not be revalidated by paying penalty: None of these as all documents can be revalidated. (However, as per question Demand Promisory note cannot be revalidated).

☑ 126. A person of 65 years of age can not nominate which of the following persons: Trust

☑ 127. The aggregate limit for capital market exposure of a Bank is: 40 0/0 of net worth at the end of previous year

☑ 128. A minor approaches for a loan. Which type of loan can be given to him: loan can not be sanctioned
other than for necessities.

☑ 129. Which of the following does not match in banker/customer relation : Locker facility - Bailee/Bailor

☑ 130. Committee on Procedures and Performance Audit of Public Services (CPPAPS) was headed by: S.S. Tarapore

☑ 131. Customer service code has been mentioned in : Banking Codes and Standards Board of India.

☑ 132. Cheque received in clearing signed by whom will not be passed out of the following: signed by a person who has ' been declared insolvent.

☑ 133. Whether a customer can approach Ombudsman without first approaching the Bank : Approaching the bank first is a pre-condition.

☑ 134. In case a forged note is detected in the cash tendered at bank counter, what should the bank do?: The Note should be impounded and not returned to the tenderer.

☑ 135. If a guardian is appointed by court, minor will become major at the age of: 21 years

☑ 136. A Cheque with forged signatures is presented for payment and is paid. Bank will be liable to:Customer (Drawer of the cheque)

☑ 137. Protection is available to the collecting banker in case of : Crossed cheques

☑ 138. Which is not a General Crossing: Name of a bank written between two parallel lines

☑ 139. If time is not mentioned on a Bill of Exchange, it will be payable: on demand

☑ 140. In an account of Club with you, cheque has been been presented for payment signed by the secretary who has died. What should the bank do?: It will be paid if it not dated subsequent to date of death.

☑ 141. Garnishee order is applicable for: credit balance in OD and not for cheque sent for collection.

☑ 142. Bank Guarantees are issued as per provisions of : Indian Contract Act

☑ 143. cheque truncation means: converting physical cheque to electronic image and stopping physical flow of a paper cheque. 660_ Foreign currency paid to taxi driver, shop keeper, can be accepted by:Authorised persons.

☑ 144. A bank cannot acquire either as owner or as pledgee shares in a company more than:- As per Section 19 of the Banking Regulation Act 1949, no bank can hold more than 30% of the paid up capital of a company or 30% of its own paid up capital and reserves, whichever is less, whether it is a pledgee, absolute owner or as mortgagee

☑ 145. For formation of a company, Registrar of Companies will issue : certificate of incorporation

☑ 146. Co is in liquidation, funds are at the disposal of : Liquidator

☑ 147. Guardian appointed by will of the father is called: testamentary guardian

☑ 148. Which of the following documents does not constitute document of title to goods:Airway bill

☑ 149. DD can be revalidated within: any time (practice may differ In different banks)

☑ 150. Which crossing is a Special Crossing : Name of Bank is written in the cheque with or without parallel lines

☑ 151. Supervision of banks is done by RBI under which act: RBI Act / BR Act / Jilani Committee Report / NI Act: Banking RegulationAct

☑ 152. A minor is aged 15 years, who is illiterate. Which type of self operated a/c can be opened -SB/ RD /FD none

☑ 153. Which of the following can open SB a/c? State Electricity Board/ Indian Bank Association/Municipal corporation: Indian Bank Association.

☑ 154. In a Flying club, the Secretary&Treasurer are authorized to sign.ACheque is presented for payment across the counter. In between it has been informed that Secretary has died,what youwill do? :Will be paid, if otherwise inorder

☑ 155. Revival of limitation for recovery of a time barred loan is possible by: obtaining fresh promise to
pay under provisions of Indian Contract Act.
As per Supreme court decision,HUF cannot be a partner because:HUF is not a natural or legal person

☑ 156. As per Prevention of Money laundering Act, preservation of records relating to closed accounts upto: 5 yr from date of closure of account.

☑ 157. Banks can provide information about the customer to another Bank: General in nature, without any responsibility

☑ 158. Board of Directors want to borrow money in excess of paid up capital and reserves of the company: can be done through a resolution passed by shareholders in the general meeting

☑ 159. Other than a Bill of exchange or promissory note, the document which was executed abroad is required to be stamped on its arrival in India within: 3 months of its arrival

☑ 160. Administrator is appointed in case of: to realize assets and pay off liabilities of a person who has died without writing a will.

☑ 161. Under Ombudsman scheme, which type of case not entertained?: advocate representing the customer

☑ 162. Which of the following is not a valid cheque for payment by the bank-l)different ink & handwriting 2) cheque with prior date 3) cheque with impossible date 4) Mutilated cheque:- Mutilated cheque

☑ 163. The liability of the drawer of bills of exchange is prime till it is not accepted by the drawee after that prime liability becomes of Drawee.

☑ 164. Whether Pvt Ltd. Co. can be partnerwith Partnership Firm: Yes

☑ 165. Counterfeit note received at the counterwhat to be done?: Impound the currency note.

☑ 166. No noting on currency note, directions issued byRBI under section 35Aof BR Act.

☑ 167. Cross cheque can be paid at counter if presented by other bank.

☑ 168. Payments of a forged draft.Who will lodge FIR paying or collecting bank: Paying Bank.

☑ 169. Borrowing powers of board of directors are contained in: Articles of Association

☑ 170. Locker can be broken open after notice to the hirer if the same is not operated for:more than three years for mediur-n risk category or one year for a higher risk category, and the locker-hirer does not respond nor operates the locker.

☑ 171. If a complainant is not satisfied with the award or his complaint is rejected by the Banking ombudsmen, he can prefer an appeal to DeputyGovernor, RBIwithin: 30 days of the of the date of receipt of communication regarding award or rejection of the complaint.

☑ 172. In case ofwrongful dishonour of cheque, bank is liable to: account holder only

☑ 173. Who can seek information under.Right to InformationAct:Any citizen of India can ask for information

☑ 174. The Garnishee Order is applicable on the account of a customer when the relationship between banker customer is: Debtor & Creditor.

☑ 175. A private limited company with Registered office at Bangalore has raised loan from a branch located at Mumbai. For creating equitable mortgage, title deeds can be deposited at: Mumbai, Kolkatta, Chennal or any other notified place.

☑ 176. A cheque is presented for payment in which amount in figures is mentioned as Rs 10,000 where as the amount inwords is mentioned as Rs Ten lakh only. In terms of section 18 of the NI Act,what should the bank do?: The amount written in words should be paid.

☑ 177. When a letter is signed by the borrower and based on that letter bank delivers the document of title to goods to the borrower, such letter is called as: Trust Receipt

☑ 178. How much charges are charged in addition to normal collection charges and out of pocket expenses for providing instant credit facility for outstation cheques:Nil

☑ 179. A limited company has registered office at Chennai whereas loan has been raised from bank branch at Mumbai. The charge will be registered with the ROC at: Chennai

☑ 180. A partnership firm conducting business other than the banking business has more than 20 members as partners. Whether this is allowed?: Such association is called illegal association as per Companies Act

☑ 181. Under Prevention of Money Laundering Act, banks are required to send cash transaction report in respect of cash deposit or withdrawal of more than Rs 10 lakh in a month from one account within: 15 days from the close of the month.

☑ 182. Who is primarily liable on Bill of exchange which has been accepted?: Acceptor (Drawee) of the Bill.

☑ 183. A cheque crossed specially to a bank is presented by the same bank to paying bank for cash payment. What should the paying bank do? Bank can make cash payment.

☑ 184. Who can make nomination in the deposit account of a minor?: Guardian on behalf of the minor.

☑ 185. Who can be a nominee?: Only an individual

☑ 186. If a depositor dies, payment to nominee or legal heirs should be made within: 15 days of completion of formalities.

☑ 187. What is the relationship between bank and customer if he has left certain goods with the bank by mistake: Bank is trustee and Customer is beneficiary

☑ 188. Appeal against the award of the Banking Ombudsman can be made to Deputy Governor, RBI within days of the receipt of copy of award from the Ombudsman: 30 days

☑ 189. A cheque was dishonoured despite sufficient balance in the account. The bank will be liable to:Drawer of the cheque and not to the payee.

☑ 190. Maximum amount of fine under section 138 of N I Act for dishonour of cheque due to insufficient funds is: twice the amount of cheque.

☑ 191. Bearer uncrossed cheque can be paid to whom: To the bearer

☑ 192. On, other than a negotiable instrument, what is the time period for payment of stamp duty, if the ocument is executed outside India : 3 months

☑ 193. May I help you counter is to be provided by bank branches other than : Small branches

☑ 194. In case of a jointly operated joint account, the nominee can obtain payment, when : none of the account holder is alive

☑ 195. A bank branch receives a counterfeit note of Rs.500, which customer wants back. What the bank should do : Impound the currency note, but No credit of full amount to customer.(No credit to customer’s account is to be given for counterfeit notes) Master Circular DCM(FNVD)G - 4/16.01.05/2017-18 dated July 20, 2017

☑ 196. When rate of interest is expressed by adjusting the impact of inflation, this is called : Real rate of Interest

☑ 197. Banks can ask for deposit of advance rent on hiring a locker for a period up to : 3 years

☑ 198. The crossing on a cheque is required to be can celled.Who can do so: Drawer

Note: if any thing wrong answer correct yourself with revelvant RBI guide line

Endorsement

TYPES OF ENDORSEMENT

☑ BLANK ENDORSEMENT:
(Sec 16-1) : Signed without writing any instruction above the signature (as to whom to pay).Such cheque becomes payable to bearer u/s 54.

Blank endorsement can be converted into full by writing name of a person, to whom to pay, above the signatures.

☑ ENDORSEMENT IN FULL : Where endorser writes the name of person to whom to pay above signatures. 

Instruments becomes payable to endorsee. Such endorsement followed by an endorsement in blank, makes the instrument payable to bearer.

☑ RESTRICTED ENDORSEMENT (Sec 50):
Where endorser restricts further negotiation (pay to ….. only). In this case, the endorsee can obtain payment but cannot endorse further.

☑ FACULTAT1VE: Where an endorser waives the condition of notice of dishonour

☑ SANS RECOURSE :
Where the endorser withdraws his liability by specifically writing so. (pay to X without my liability). In this case, in case of dishonour, the endorsee cannot recover from the endorser.

☑ FORGED :
When endorser's signatures are forged. Title does not pass to any person on the basis of such endorsement and it remains with the payee or last endorsee.           
A person getting a cheque after such endorsement, does not become holder as he gets no title to the cheque.

Paying bank is protected (u/s 85-1) on payment on the basis of forged endorsement if it is regular.

Capacity building

CAPACITY BUILDING

The Reserve Bank had constituted a ‘Committee on Capacity Building’ (July 2014)

under the Chairmanship of former Executive Director, Shri G Gopalakrishna, with the

objective of implementing non-legislative recommendations of the Financial Sector

Legislative Reforms Commission (FSLRC), relating to capacity building in banks and

non-banks, streamlining training intervention and suggesting changes thereto in view of

ever increasing challenges in banking and non-banking sector.

One of the recommendation of the committee is pertaining to certification of staff.

Banks should identify specialised areas for certification of the staff manning key

responsibilities. To begin with, the banks should make acquiring of a certificate course

mandatory for the following areas:

• Treasury operations

• Risk management

• Accounting

• Credit management

Very useful General banking bits

Very Very useful general banking MCQs



1. ______is a money market instrument, which enables collateralized short term borrowing through Govt. securities: Repo

Rate.

2. While issuing DD of Rs.50,000/- and above what should not be accepted: By cash

3. Call option stands for: Right to Buy but without obligation to buy.

4. ˜Call Money market refers to the market for short term funds ranging from _____: Overnight funds

5. ˜In Ultra Small Branches, a designated offi cer will visit the connected to Bank’s central server (CBS): Bank discretion.

6. ˜Maximum deposit in PPF in a FY: Rs.1,50,000

7. CRR decided by: RBI

8. ˜Public Debt Office (PDO) is an ______: Autonomous body and Investment Banker to Central Govt.

9.Clean Audit Report means : An audit report without any qualifications

10. ˜What is full form of USB: Ultra Small Branch.

11. cross selling: Offering banks products to existing customers

12. What is callable security: which can be called at any predetermined date.

13. Under Atal Pension Yojana (APY), the Central Govt will contribute 50% of total contribution or Rs 1000 whichever is lower, to

eligible subscribers account, for a period of: 5 years.

14.A bank cannot grant loan against security of which type of shares - other bank’s shares, own shares: own shares.

15.A cheque will be valid for: 3 months from date of issue

16.A DD is required to be crossed with account payee crossing if the amount of DD is: Rs 20000 and above

17.A Financial that derives its value from another financial product is called: Derivative.

18.A granted power of attorney to B for operating account of A. You receive information about death of A and simultaneously a

cheque signed by B on account of A is presented for payment. What should the Bank do?: Cheque will not be paid.

19.A minor will attain majority at the age of: 18 years

20.A private limited company must have minimum ___directors?: 2

21.After 6 months of successful transaction, which facility will be provided for accounts opened under PMJDY scheme?: Overdraft

22.Age limit in PrimeMinisters Jeeven Jyoti Bima Yojna: 18 —50

23.All scheduled commercial banks to convert their opening balance sheet as at April 1, 2013 in compliance with the IFRS.

24.An officer does not require permission of Branch Manager for: making payment of a pay order which was issued on account of

purchase of furniture by the bank.

25.Appeal against decision of Banking Ombudsman can be made to: Deputy Governor RBI.

26.Application for information under RTI Act 2005 should be disposed off within: 30 days

27. As per Atal Pension Yojana (APY), the minimum age of joining the scheme is 18 years and maximum age is and the age of

exit and start of pension would be 60 years: 40 years

28.As per Atal Pension Yojana (APY), the minimum period of contribution by the subscriber

29.As per KYC guidelines, Demand draft of how much amount cannot be issued against cash?: Rs 50,000 and above

30.As per latest change, what is the maximum PPF contribution that can be paid in a F.Y?: Rs 150,000

31.As per Official Language Policy, in Region "C", how much percentage of the Sign Boards should be in Hindi?: No specific target.

32.As per Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme, all saving bank account holders are entitled to join the scheme in

the age between: 18 to 70 years.

33.As per RBI guidelines, Base rate is to be reviewed by bank on _______: Quarterly basis.

34.As per RBI Guidelines, the charges for closure of bank account before stipulated period should not exceed: not applicable as

banks are free to fix account closure charges

35.As per RTI Act, information is required to be given by public authority within how many days?: 30days

36.As per RTI Act, information related to life and liberty should be submitted within: 48 hrs.

37.As per section 107 and 108 of Indian Evidence Act, a person can be presumed to have died if he is missing for : 7 years

38.As per Supreme Court who cannot be a partner? HUF.

39.At present, who is the Governor of RBI?: Dr Raghuram Rajan

40.Atal Pension Yojana (APY) offers fixed amount of pension ranging between depending upon the contribution which will be based

on the age of joining the APY: Rs 1000 to Rs 5000

41.Balance lying in the account of a company. When winding up proceedings of the company started funds in the account will be at

disposal of: Official Liquidator

42.Bank Customer relation in safe custody: Bailee- Bailor.

43.Banker customer relationship in standing instruction: Agent and Principal

44.Banking Codes and Standards Board of India (BCSBI) is a – (a) subsidiary of RBI (b) Department of Ministry of Finance (c)

Department of Indian Banks Association: None of these as it is an independent and autonomous watch dog to monitor and ensure

that the Banking Codes and Standards adopted by the banks are adhered to.

45.Banks are required to maintain Minimum and maximum CRAR of: Min 9% in India. There is no maximum.

46.Banks should disclose the details of fees/remuneration received in respect of the Bancassurance business undertaken by them, in

the ‘Notes to Accounts’.

47.BCSBI is affiliated or regulated by? An independent body

48.Best indicator of country's growth?: GDP

49.Bharathi Airtel tie up with which bank regarding payment bank?: Kotak Mahindra Bank.

50.Break even point: Level of sales at which there is no profit no loss

51.Broad money is represented by: M3.

52.Business correspondent appointed by bank work as- (a) Bank dealers; (b) Agent of the Bank (c) Customer's agent; (d) RBI agents

(e) RRB Agents (f) Trustees of customer: Agents of the bank.

53.Business correspondent in bank are for banking business: Bank is the Principal and correspondent is the Agent.

54.Call money is available for: one day

55.Call option stands for: Right to Buy but without obligation to buy.

56.CAMEL rating is done by: RBI to judge the health of banks

57.Capital account convertibility means the freedom to convert to financial assets in to foreign financial assets and vice versa.

58.Capital adequacy ratio related to? : CRAR- capital fund.

59.Carbon credits relates to: environment

60.CARE STANDS FOR : CREDIT ANALYSIS & RESEARCH LTD

61.Certificate of incorporation issued by: Registrar of Companies

62.Chairman of SEBI: U K Sinha.

63.Clayton’s Rule is related to which of the following rights?: Right of Appropriation

64.Clean Audit Report means : An audit report without any qualifications

65.Contact less Debit Card has been issued by: ICICI Bank.

66.Contract of Insurance is a contract of: Indemnity.

67.Contract to perform the promise or discharge the liability of a third person in case of his default can be termed as - (a)Guarantee;

(b) Indemnity; (c) Contingency; (d) Subrogation: Guarantee.

68.Cost push inflation is due to: High cost of production

69.Counter Cyclic Buffer required as per Basel III will be made at: normal times

70.CP is issued for amount of: Rs.5.00 lac and multiples of Rs 5 lac.

71.CPPC STANDS FOR : CENTRAL PENSION PROCESSING CELL

72.Cross selling: Offering banks products to existing customers

73.CRR decided by: RBI

74.CRR is based on which act: Sec 42(1) of RBI Act

75.CRR is calculated on: net demand & time liability.

76.Current account operated by finance director of a limited compnay. Cheque signed by him presented for payment after his death:

Cheque should be paid

77.Customer day is observed by banks at what periodicity?: once in a month (15th day of every month)

78.DEATH CLAIM SETTLEMENT IN HOW MANY DAYS? : 15 DAYS

79.Delayed collection beyond abnormal period: SB Rate + 2%.

80.Distribution of Insurance products as Corporate Agents is called: Bancassurance

81.DRP: Disaster Recovery Plan

82.DSB Returns relate to: Off Site Surveillance

83.Duplicate DD to be issued in how many days?: 14 days from the date of request

84.Elasticity of Demand is least in the case of: Items of necessity.

85.Existing total No. of RRBs as on 31-03-2012: 82

86.Expand IFRS -International Financial Reporting System

87.Expand the abbreviations GAAS: Generally Accepted Auditing Standards

88.Facility for Exchange of Notes and Coins: The facility of exchange of cut/mutilated banknotes, in addition to soiled notes and issue

of good quality clean banknotes/coins, should be made available at all bank branches (including those of co-operative banks and

RRBs). This facility should be provided to all members of public without discrimination on all working days

89. FIR is required to be filed in case where the counterfeit notes found are acknowledgement is to be obtained from the concerned

police authorities: Five pieces and above.

90.First Unique Identification Card (Aadhar card) was issued in which state – Maharashtra; Sikkim; Manipur; Karnataka?:



Maharashtra ( To Ranjana Sonawne of Tembhli village in Maharashtra)

91.For counterfeit notes a consolidated report as per prescribed format to be submitted to police authorities if in a single Txn note

is: five pieces or more in one transaction and if four pieces then consolidated report through nodal office to local police station.

92.For creation of Equitable mortgage, the town for deposit of title deeds to be notified by – (a)State Govt; (b) RBI; (c) Central Govt;

(d) Bank: State Govt

93.For injection of liquidity Txn done by RBI: Repo Rate.

94.For seeking information under RTI what is not required?: Reason for seeking information not to be disclosed.

95.For Ultra Small Branches a designated officer will visit the village on a prefixed date and time every ______with laptop and will be

connected to Bank’s central server (CBS): Week

96.Forged currency note: not to be returned & should be impounded

97.Fraudulent Draft presented and paid, who is to lodge complaint: Paying banker

98.FSDC: Financial Stability and Development Council

99.Full form of FDI: Foreign Direct Investment

100. Full form of IRDAI is: Insurance Regulatory & Development Authority of India.

101. Full form of MUDRA: Micro Units Development and Refinance Agency Ltd (MUDRA)

102. Full form of NIM: Net Interest Margin

103. Full form of Nrega: National Rural Employment Guarantee

104. Full form of PRAN?: Permanent Retirement Account No

105. Funds received in Consolidated Fund of India are maintained with: RBI (Reserve Bank of India is the main banker of the

Government and other authorised Banks function as its agents while handling Government transactions).

106. General insurance works on which principle: Principle of utmost faith.

107. Gift City: Gandhi Nagar, Gujarat;

108. Govt securities are known as: Gilt edged securities

109. Govt. infused capital in 9 PSBs in the beginning of 2015 amounting to: Rs.6990 crore

110. Green revolution is related to production of : Wheat and Rice

111. Growth of people in a country is reflected in: real per capita income

112. Guidelines on having Investor Protection Funds by Stock exchanges issued by: SEBI.

113. Head Office of Asian Development Bank is located at: Manila (Philippines)

114. Head Office of International Labour Organisation is located at: Geneva

115. Head office of NABARD is located at: Mumbai (S!DBI Head Office at Lucknow)

116. How much exemption from income is allowed as per section 80 C of Income Tax Act for the financial year 2015-16?: Rs

150,000

117. Hyper inflation- when a country experiences very high and usually accelerating inflation. The general price level within a

specific economy increases rapidly as the functional or internal currency, loses its real value very quickly.

118. IBPP STANDS FOR : INTERNET BILL PRESENTATION & PAYMENT

119. ICAAP full form: Internal Capital Adequacy Assessment Process.

120. If a Garnishee Order is received by the bank in which amount to be attached is not mentioned, what should the bank do?:

Full amount to be attached

121. If there is delay in reporting to RBI by currency chest or there is double/excess reimbursement, what is the rate of

interest charged by RBI?: Bank rate+2%.

122. in 1969, the 14 Bank Nationalised. At that time the Prime Minister of India: Smt. Indira Gandhi

123. In a partnership formed under Indian Partnership Act 1932, what is the liability of a partner?: Partner is liable jointly and

severally i.e. as partner as well as in his personal capacity. Therefore, liability is unlimited

124. In which type of charge possession is with creditor and ownership is with debtor?: Pledge

125. Income Rs.1.00 lac- Tax Rs.0.10 lac, Income Rs.2.00 lacs: Tax Rs.0.30 lacs, Income Rs.0.50 lac-Tax Rs.0.03 lac-This is

example of Progressive Tax

126. Inflation in India is measured on the basis of : Wholesale Price Index

127. Insurance amt in PMJDY: Rs 1 lac.

128. Insurance sector in India is regulated by: IRDA

129. Internal audit is meant for : internal operational check ups

130. Investment Fluctuation Reserve is calculated on which type of security? Available for Sale category and Held for Trading

category.

131. Investment Fluctuation Reserve is maintained on securities classified as: "Held for Trading" and "Available for Sale '

132. Investment Fluctuation Reserve is part of which type of capital: Tier I Capital.

133. Islamic banking has the features of : Conservative banking

134. CMD of a public sector bank is appointed by: Central Govt.

135. Issue of Rs 5 coins to commemorate the occasion of "150th Birth Anniversary of Swami Vivekananda": The Government of



India has minted the above mentioned coins.

136. Issue of Rs 5 coins to commemorate the occasion of "60th year of India Government

137. Job rotation for clerical staff should be done in every ______: 6 months.

138. Kisan Vikas Patra scheme was discontinued in 2010 due to which reason?: Fraud

139. Kite flying means accommodation receipts and payments and not genuine trade transactions

140. KV Kamat has become first chairman/President of which bank?: New Development Bank (NDB) of BRICS

141. LAFAR is submitted by whom?: Statutory Auditor

142. Letter received in Hindi in Region B, answer to be given in %age: 100%

143. LFAR returns relate to: Statutory audit

144. Life Certificate of pensioners is taken in which month?: November

145. Loan should not be granted to a director of the bank against: shares of own bank ( Loan can be granted against bank’s own

deposits; insurance policy; govt security).

146. Main Objective of Infrastructure Development Corporation is : Development of infrastructure of the country.

147. Marginal standing facility rate: 7.75%

148. Maximum period for filing case with Ombudsman: 12 months from receiving reply from bank

149. May I help you counter on how much staff: 10 and above.

150. Meeting of the Official Language Committee is held: Quarterly

151. MGNREGA: Mahatma Gandhi National Rural Employment Guarantee Act

152. MIN SUBSCRIPTION IN PPF CANNOT BE LESS THAN: Rs.500/-

153. Minimum amount of CD – Rs.1. lakh

154. Minimum and Maximum amount that can be deposited in PPF account is _____: Minimum Rs. 500/- & Maximum Rs. 1.50

lacs.

155. Money market mutual funds are regulated by: RBI

156. Mutual fund Market regulated by: SEBI

157. Name of device used by Business Correspondents: Biometric device.

158. Net Interest Income is Equal to: Interest received on assets о /ŶƚĞƌĞƐƚ ƉĂLJŵĞŶƚƐ ŽŶ ůŝĂďŝůŝƟĞƐ

159. New name of Planning Commission: “National Institution for Transforming India” or “NITI”

160. NITI full form: National Institution for Transforming India (Chairman PrimeMinister; Dy Chairman Arvind Panagariya).

161. Nobel Price for Microcredit: Muhammad Yunus

162. Number of directors in a public limited company can be: between 3 to 15. For more than 15, special resolution passed by

shareholders is required

163. Payment of DD more than 20000 only by crediting to account and not in cash as per: RBI guidelines

164. PERIODICITY OF CUSTOMERMEET IN A BRANCH: MONTHLY.

165. Perpetual Non redeemable preference share is a part of: Tier -1 capital

166. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme offers a life insurance cover of: Rupees 2 lakh

167. Premium in Prime Minister Suraksha Bima Yojana: Rs.12 per year and claim available is Rs.2 lac in case of accidental death

only.

168. Primary Deficit is Fiscal deficit?: Always less

169. Purchaser of DD cannot do the following: Stop the DD

170. Rating of Bank is carried by RBI on CAMELS criteria, what do “C” stands for? Capital Adequacy.

171. RBI at which rate purchases or rediscounts B/E or other Commercial Bks: Bank Rate (7.75%)

172. RBI can issue bank note upto: Rs 10000

173. RBI gives credit to bank on which rate: Repo rate

174. RBI Governor's main concerns in monetary Policy: Inflation and Fiscal Deficit

175. RBI has issued star series notes for replacement of wrongly printed currency notes. Currently, these notes have been

issued in the denomination of : Rs 10, Rs 20, Rs 50, Rs 100.

176. Regulator of Capital market: SEBI

177. Reporting time before 15 minutes from starting of public dealings in: Metro/urban/Semi Urban & Rural area.

178. Revaluation Reserve discounting factor to be taken to which capital: 55% & Tier II Capital.

179. Review of RBI credit and monetary policy: Bi-Monthly

180. RTI: Person seeking information need not give reason as to why he is seeking the information.

181. Sabbatical can be availed maximum: 24 months and two times in your tenure.

182. Safe custody of Articles comes under which act: Indian Contract Act

183. Safe deposit locker – maximum deposit that can be asked is: 3 year advance rent plus locker breaking charges.

184. SAFTA is related to :TRADE

185. Security officer visit for high risk branches: Once in a quarter.

186. Sensex of 30 scrips is related to: Bombay Stock Exchange (BSE)

187. Shares transferred in electronic form: Dematerialization.

188. Spread in the context of bank profit loss account means: Interest earned - interest expended

189. Statutory Audit of banks is done as per provisions of: Banking Regulation Act

190. Subordinate Debt should not be more than % of tier-I capital? 50%

191. Subordinated debt instruments together with all other instruments of Tier - II capital are to be limited to ___ of Tier I: 100%.

192. Subordinated Debt which is a component of Tier II capital, is shown in the balance sheet as a part of: Other Liabilities and

Provisions on the liability side

193. Subprime crisis means : Problem created by lending to borrowers not meeting the credit rating criteria.

194. The Branch Level Customer Service Committee may meet to study complaints/ suggestions, cases of delay, difficulties

faced / reported by customers / members of the Committee and evolve ways and means of improving customer service: at least

once a month

195. The charge levied by banks for under utilization or non utilization of sanctioned CC/OD limits is called: Commitment charge.

196. The Committee on Listing of Stock Exchanges was headed by Dr Bimal Jalan. The Committee has recommended against

listing of Stock Exchanges.

197. The country of Euro Zone facing crises is: Greece and Cyprus (latest Cyprus)

198. The liability of Introducer in case of fraud by the customer: No legal liability

199. The main source of infrastructure finance are: FDI investment, Pension funds, Insurance funds.

200. The police seeks information regarding conduct of an account being maintained in your branch in connection with some

investigation. Can the bank pass on the information? : Yes, if the information is asked by an official of the rank of incharge of Police

Station or above and in writing.

201. The present Bank Rate is: 7.75%

202. The recent committee on urban coop banks was headed by: R. Gandhi

203. Tier I capital also known as: core capital.

204. Tier II capital can be maximum up to : 100% of Tier -1 capital.

205. Total number of Banking Ombudsman in India: 15

206. Transfer of interest in specific immovable property to create security for a debt is called: Mortgage

207. Treasury bill is issued for: 91 days,182 days,364 days

208. UCBs will start TDS at source if interest on term deposit in a financial year is more than Rs.10,000/- from which date: 1st

June 2015

209. Unclaimed deposits with banks which have not been claimed for last 10 years will be transferred to: Depositor Education

and Awareness Fund.

210. Under new pension scheme- minimum subscription in a year: Rs.6000 in a year ( min 500 at one time and for max there is

no upper limit)

211. Under Pardhan Mantri Suraksha Bima Yojana (PMSBY) Scheme, the uniform premium amount of Rs plus service tax

should be applicable per annum per person: Rs 12

212. Under PMJDY Scheme announced by PrimeMinister the debit card will be issued to every account holder. The type of debit

card will be: Rupay Card;

213. Under PMJDY, what is the time limit for lodging a claim in respect of the accident as covered under accident insurance

cover:Within 90 days of accident.

214. Under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme, the uniform premium amount of is

applicable per annum per member: Rs 330

215. Under Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) scheme, the individual is eligible to join the scheme at the age

between: 18 years to 50 years

216. UNDR NPS MINIMUM SUBSCRIPTION IN A YR : Rs.6000

217. Uniformity in Intersol Charges: Banks should follow a uniform, fair and transparent pricing policy and not discriminate

between their customers at home branch and non-home branches. Accordingly, if a particular service is provided free at home

branch the same should be available free at non home branches also. There should be no discrimination as regards intersol charges

between similar transactions done by customers at home branch and those done at non-home branches. Cash handling charges may

not be included under intersol charges

218. Upon finding the counterfeit currency note on the counter, the action of the bank should be: Impound the currency note

but credit full amount to customer. Receipt not to be issued to depositor.

219. Voting rights to an individual shareholder in Private banks not to exceed: 10 % (being increased to 26%)

220. What are the total number of digits in Aadhar Card: 12

221. What does LAF stands for_____: Liquidity Adjustment Facility.

222. What is a special purpose vehicle? A special purpose vehicle is a legal entity (usually a limited company of some type or,

trust or a limited partnership) created to fulfill narrow, specific or temporary objectives. Its operations are limited to the acquisition

and financing of specific assets.

223. What is Accrual concept: Every income or expense is taken in to account when becomes due irrespective of the fact

whether it is received or paid or not.

224. What is age limit in PMJeeven jyoti Bima yojna?: Eligible all saving accounts holder in the age of 18 to 50 years; Benefits

Rs. 2 lac on death due to any reason; Premium – Rs. 330 per annum per member.

225. What is Certificate of Incorporation?: Certificate issued by Registrar of Companies to a limited company, which is a

conclusive evidence of existence of company as a separate body corporate.

226. What is Debt securitization: Converting illiquid financial assets in to liquid marketable securities.

227. What is factoring?: Purchasing of Book debt

228. What is forfaiting?: Without recourse discounting of export bills

229. What is full form of FDI?: Foreign Direct Investment

230. What is full form of GDP?: Gross Domestic Product

231. What is full form of GST?: Goods and Service Tax

232. What is full form of IFRS?: International Financial Reporting Standards.

233. What is full form of ULIP?: Unit Linked Insurance Plan

234. What is guarantee corpus in MUDRA bank or funds allocated for MUDRA: Rs 20000 crore

235. What is Hybrid debt instrument? a) Debenture b) Bond c) Preference

shares d) Convertible Bonds.

236. What is incorrect about RTI?: Reason for seeking information to be mentioned in RTI application

237. What is meant by 'sensitivity' in economics terms? Sensitivity analysis (SA) is the study of how the variation (uncertainty) in

the output of a statistical model can be attributed to different variations in the inputs of the model. It is a technique for

systematically changing variables in a model to determine the effects of such changes

238. What is Personal Accident insurance cover for death and permanent disability due to accident in PrimeMinister Jan Dhan

Yojana (PMJDY): Rs.1.00 Lac

239. What is rate of Premium in Pradhan Mantry Suraksha Bima Yojana (PMSBY)?: Premium payable Rs. 12 per annum per

member; sum insured Death / permanent disability Rs. 2 lacs; Partial disability Rs. 1 lac.

240. What is short selling?: Selling securities by a dealer which he does not possess at the time of sale.

241. What is the age limit for coverage under Prime Minister Suraksha Bima Yojna (PMSBY): 18 years to 70 Years

242. What is the amount of insurance cover in case of PrimeMinister Jeevan Jyoti Bima Yojan (PMJJBY): Rs 2 lakh

243. What is the cut off point for reporting of Non Cooperative Borrowers – Rs.5. Crore and above.

244. What is the date for final implementation of Basel III?: 31.03.2019

245. What is the effect of Bonus Issue of Shares on Debt-equity ratio? No effect at all as neither there is a change in term liability

nor in net worth of the company.

246. What is the full form of QIP?: Qualified Institutional Placement.

247. What is the full from of GIFT city?: Gujarat International Financial Tech City.

248. What is the impact of increase in Inflation rate?: Purchasing power decreases

249. What is the initial tax exemption limit for Normal Senior Citizens i.e. aged between 60 years to less than 80 years? Rs 3 lakh

250. What is the liability of a bank in case of payment of forged cheque?: Bank is liable to drawer for having made payment

without authority as also for wrongful dishonor of another cheque due to insufficient funds.

251. What is the lock in period for deposits under PPF scheme: 15 years

252. What is the main concern of Indian Economy today?: Rising Inflation

253. What is the maximum age of Govt’s nominee on Board of Directors of a bank?: 70 years

254. What is the maximum amount for which award can be given by Banking Ombudsman in cases other than complaints

relating to credit card: Rs 10 Lac

255. What is the maximum amount of award that can be given by Banking Ombudsman in case of credit cards?: Rs 1 lakh

256. What is the meaning of delegation? Delegation means the granting of authority subordinates to operate within the

prescribed limits. It means subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.

Authority can be delegated but responsibility cannot be delegated.

257. What is the meaning of financial closure? Financial Closure occurs when there is legally binding commitment of private

sponsors to mobilize funding or provide services.

258. What is the minimum paid capital required for setting up a payment bank?: Rs 100cr

259. What is the nature of business of Insurance Co: indemnifying the insured, collective sharing of risks

260. What is the objective of selling mutual fund product by a bank?: To earn non interest income

261. What is the percentage in Region A to bring training materials bilingually?: 100%

262. What is the period of 12th Five year plan :2012-2017

263. What is the Purpose of nomination? To settle claims easily and quickly in case of death of depositor

264. What is the reason for allowing appointment of a Non Banking Financial company as BC?: For increasing financial inclusion.



265. What is the relation between debenture holder and company: Creditor and debtor

266. What is the relation between purchase of a DD and Bank?: Creditor and Debtor

267. What is the relationship between bank and customer in case of Garnishee order?: Debtor and Creditor

268. What is the role of nominee in term deposit?: He is trustee of legal heirs

269. What is the Service Charge for a remittance of Rs.20,000/- to Nepal if payee not customer of NSBL: Rs 100

270. What is the stake of Central Govt., Sponsoring Bank and State Govt. in RRB capital structure: 50:35:15.

271. What is the time within which death of account holder under Prime Minister Jan Dhan Yojna (PMJDY) should be advised to

bank? 30 days

272. What is the transaction code no for DD in the MICR cheques: 16

273. What is Variable cost:Which changes with production like Raw material, wages, power etc.

274. What refers to P-Notes: Participatory Notes used by Foreign Institutional Investors for investment by overseas investors

who are not registered with SEBI.

275. What right is available to paying bank in respect of DD - stop payment, cancellation, revalidation: revalidation

276. What should the minimum holding of Government in public sector banks?: 51%

277. What was the target for opening accounts under PrimeMinister Jan Dhan Yojana which was to be achieved by 26 Jan 2015?

Initially 7.5 crore accounts which was later increased to 10 crore accounts.

278. When a bank in addition to accepting deposits and making advances, provides various other types of financial services, it is

called: Universal Banking

279. When a complainant receives copy of award from Bank Ombudsman, within how many days, he is required to give his

acceptance?: 30 days from date of receiving the copy of award.

280. When banks borrow fund for overnight, what is it called: call money

281. When does the right of a nominee start in case of deposits? On the death of all account holders.

282. When is customer day celebrated : 15th of each month

283. When letter of administration issued: When a person dies intestate.

284. When remittance done to currency chest, counting in front of bank officials will be done for denomination of: Rs.500 and

Rs.1000 notes.

285. Which company has got license to start new private sector bank in the year 2014?: Bandhan Financial Services Ltd.

286. Which describes insurance business most?: Disaster risk cover.

287. Which is example of Direct Tax: Income Tax

288. Which is not the function of ALCO?: Fixing Budgets and Targets

289. Which is the central bank of India? : Reserve Bank of India.

290. Which is the first Credit information company of India?: COL

291. Which is the largest source of liquidity in equity market? FII

292. Which of the following can not be done by the purchase of a Demand Draft – (a) Stop payment of DD; (b) Obtain duplicate

DD in case of loss; (c) Getting the DD revalidated; (d) endorse the DD: Stop payment of DD.

293. Which of the following does not come under Tier II capital? a) Capital reserves b) Undisclosed reserves c) Revaluation

reserves d) Cumulative Perpetual shares: Capital Reserves.

294. Which of the following does not have share in RRB? (a) Sponsor Bank (b) Central govt (c) State govt (d) Nabard: Nabard.

295. Which of the following has become new member of Asian Clearing Union: Maldives Monetary Authority. (Other members

are Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central Bank of the Islamic Republic of Iran,

Central Bank of Mynamar, Nepal Rashtra Bank, Central Bank of Sri Lanka, State Bank of Pakistan)

296. Which of the following is a Direct Tax - Excise duty, custom duty, service tax, VAT, gift tax: Gift Tax

297. Which of the following is an indirect tax? Sales Tax

298. Which of the following is Chairperson of NABARD: Sh. Prakash Bakshi

299. Which of the following is index of National Stock Exchange – (a) Nifty; (b) Sensex; : Nifty

300. Which of the following is the financial capital of India – Delhi, Ahmedabad, Mumbai: Mumbai

301. Which of the following will be reduced with increase in inflation? (i) Purchasing Power of money (ii) Interest rate (iii) Cannot

say (iv) CRR (v) None of these: Ans is Purchasing power of Money.

302. Which of the following-is a subsidiary of Standard & Poor? CRISIL

303. WHICH OF THE ITEMS WILL NOT BE AN ASSET IN BANKS BAL SHEET – ADVANCES/FIXED ASSET/ DEPOSITS/

: Deposits

304. Which one is not under core sector: automobile

305. Which sector has highest share in GDP of India?: Services

306. Which tax has been abolished in Budget 2015-16?: Wealth tax

307. Which type of charge to be created on Bank’s FD?: Assignment

308. While giving guarantee favouring stock exchange on behalf of brokers, minimum margin should be (a) 50 % out of which

minimum 25% should be cash margin (b) 50 % out of which minimum 20 % should be cash margin (c) 50 % out of which 10 % should



be cash margin: Ans is (a)

309. While increasing or decreasing interest rate, we often hear basis point. 100 Basis point will be equal to: 1 %.

310. Who can stop payment of a Demand Draft?: Nobody

311. Who decides Saving Bank rate: Bank- ALCO committee.

312. Who has never been Governor of RBI – (a) C Rangarajan; (b) Y V Reddy; (c) Bimal Jalan; (d) Pratip Kumar: Pratip Kumar

313. Who headed the committee appointed by RBI for financial inclusion?: Nachiket Mor (The Committee on Comprehensive

Financial Services for Small Businesses and Low Income Households)

314. Who is Drawee in case of DD - paying branch, collecting bank, issuing branch; purchaser, holder?: Paying branch of issuing

bank.

315. Who is not promoter of CIBIL: RBI....

316. Who is regulator of commodity market in India? 1)sebi 2) Ncedex 3) mcx 4) Forward Market Commission: Forward Market

Commission.

317. Who is the regulator of capital market?: SEBI

318. Who is the regulator of insurance sector?: IRDA

319. Who is the Regulator of LIC: IRDA

320. Who issue Garnishee Order: Court

321. Who was President of India before Ms Pratibha Patil: A P J Abdul Kalam

322. Who will decide Base Rate of a Bank?: Bank itself.

323. Wholesale Price Index is calculated on which basis?: Weekly basis for food inflation and monthly for aggregate inflation.

324. Why International Financial Reporting System (IFRS) should be implemented: For comparison of financials of companies

operating in two different international jurisdictions.

325. Within how many days appeal against Ombudsman can be filed?: 30 days

326. Within how many days, appeal can be made by a bank against the Award of Banking Ombudsman to the Appellate Authority

i.e. Deputy Governor RBI: 30 days from receiving the acceptance from customer

327. You need to issue a Demand draft for Rs 10,000 favouring Mr X of Chandigarh.Which one of the following will not be the

option while issuing DD – (i) Payee will be Mr X or Bearer (ii) Payee will be Mr X Chandigarh (iii) Payee will beMr X State Bank of India

A/C 31435195901: Mr X or Bearer

Sole and multiple banking

Sole Banking Arrangement: Sole banking arrangement is a lending by single bank to a large borrower, subject to the resources available with it and limited to the exposure limits imposed by the Reserve Bank of India. Many a times when you propose to approach to new bank for funding, they propose for sole banking that their complete banking should be transferred to their bank. This is done for two reasons one is to get complete business and second is very important is having complete monitoring of fund flow and cash flow of the firm.



 Multiple Banking Arrangement, Consortium Lending, Syndication: Multiple Banking: When the credit requirements of a borrower are beyond the capacity of a single bank or that the bank does not want to take more exposure on a particular borrower, he may then resort to multiple banking. It is an arrangement where a borrower borrows simultaneously from more than one bank independent of each other, under separate loan documents with each bank. Securities are charged to each bank separately. Remember, this is different from Consortium and Syndication



Consortium lending

Consortium lending also called joint financing or participation financing. It is a system of financial emerged due to consequential increase in demand for funds of substantial magnitude and inability of individual banks to take care of the entire fund requirement

of large borrowers. The system of consortium lending provides scope and opportunity to share risk amongst banks. The system is considered to be mutually beneficial to the banks as well as customers. Under multiple banking, there is no coordination among banks regarding appraisal, documentation, other terms and advances. In such a situation borrowers got the upper hand by playing one bank against the other. It was, therefore, necessary to formalize these credit arrangements to safeguard the interest of the banks. It is mainly catered in case of large corporate and certain mid-sized borrowers.



Syndication Lending

 Reserve Bank of India has permitted the banks to adopt syndication route to provide credit in lieu of consortium advance. A syndication credit differs from consortium advance. A syndicated credit differs from consortium advances in certain aspects.



The salient features of a syndicated credit are as follows:



 1. It is an agreement between two or more banks to provide a borrower a credit facility using common documents of the borrower.



2. The prospective borrower gives a mandate to a bank, commonly referred as a lead bank (lead manager), to arrange credit on his behalf. The mandate gives the commercial terms of the credit and the prerogatives of the mandated bank in resolving contentious issue in the course of the transaction of complete syndication.



3. The mandated bank prepares an information Memorandum about the borrower in consultation with the latter and distributes the same among st the prospective banks, inviting them to participate in the credit proposal.



What is a 'Syndicated Loan'

A syndicated loan, also known as a syndicated bank facility, is a loan offered by a group of lenders – referred to as a syndicate – who work together to provide funds for a single borrower. The borrower could be a corporation, a large project or a sovereignty, such as a government. The loan can involve a fixed amount of funds, a credit line or a combination of the two.

60 JAIIB LEGAL 18.11.2018 recollected questions

60 JAIIB LEGAL 18.11.2018 recollected questions ...


1.Banking ombudsman-max.amount,no.of members in Pvt LTD and public LTD company,
2.paid up capital for Pvt and public LTD company,
3.sale of goods act relate to??
4.DRT related 5 to 6 questions
5.Sec 131 of NI ACT
6.Many questions regarding drt  , negotiable instruments
7.More than 15- 20 case studies
8.RTI act rejected by
9.Amalagation of two banks
10. Chairman of sebi who appoint
11.LIABILITY of drawee cover under NI act
12.MONEY laundering related
13.Two parties of BOE
14.Appelate Tribunal chairmander
15. Order NISI garnishee order
16.Appeal against district court
17.1st appeal in appellate and fee
18.Around 10-20 questions are from only partnership and companies
19.IBC 2016 can be filed by
20.RBI inspection to Banking companies
21.FEMA ED IS ESTABLISHED BY
22 FEMA act objectives
23 .What is public key
24.features of Lokadalat
25. Award means by Lokadalat
26.rejected by district forum than where you can appeal
27.DRAT can be headed by
28.DRT to DRAT .....%of amount to deposit
29.RTI has to dispose information
30. More than 3 no.of parties involved in which.
a.LC
b.guarantee
C.BOE
D.indeminity

31.Banking license can be cancelled by??
32.One 2 mark question regarding mode of charges
1.car loan
2.finished goods
3.FDR
4.HOME LOAN
5.LIC POLICY

33.Consumer means???
34.Conract of goods what are going to transmit??

35.Recovery officer duties??
36.DRAT can transfer the cases to any other DRT within his juridiction

37.2 marks question...firm is registered at  mumbai and factory at chennai avail loan at kolakata based bank against factory ..then where will be mortagage takes palce??

38..Bank given loan against Hypothecation of work in process goods ....then Charge witb ROC will be filed when???

39.Counter claim filed under sub section8   has the same effect a

40.IBC 2016 can be filed by

41.Foreign banks question ...place of business mumbai with amount and profit % will be transferred to rbi???  Macmillan page 19

42.Assessee and assessment question based on place of residence
43.National council forum is headed by whom???

44.Minister of consumer affairs

45.Agreement related question ....contract = agreement + enforceability

46.National council forum is headed by whom???

47.Continuing guarantee in the case of death of guarantee??

48.Recovery officer duties??

49.DRAT can transfer the cases to any other DRT within his juridiction

50.Regarding nature of pledge

51.Parties related to LC


52.BR act 17(1)
53.NBFC

54.NI act

55.Sarfasei act

56.law of limitations

57.Types of securities


58.130 transfer property act

59.RTI act

60.lokadalat

61.Possesion of immobile property


Recollected questions posted by our members

Limitations period of foreclosure - 30 Years
Section 35 of RBI act - Initial assets and liabilities
Section 35 of Banking Regulation Act, 1949 - Inspection
Minor Partner liability in firm - cannot be held personally liable
Payee bank protection in case of forged Instrument - Sections 10, 85 and 128 of NI Act
Elder Male member called as in HUF - Karta
Non negotiation crossing Obligation to payee bank
Limitation period in case of Default of loan in EM
Bank Negotiation stamp of cheque, presented to other bank
5-6 questions frm DRT/DRAT
Bank Guarantee
Questions from NI Act
Limitation Act
Charges, Mortgage
Partnership Act
FEMA
Consumer Protection Act
Banking Ombudsman
Majority of the paper from Chapter A
Questions on minor admitted benefits
LC types i.e red clause and green clause
Public Ltd and Pvt company differs
No of members in pvt ltd
Case studies on Bank Guarantee
LC case study
Winding up decisions

• Loan documents signed by in case of loan to HUF

JAIIB LEGAL RECOLLECTED:: Most important Previous years questions

JAIIB LEGAL RECOLLECTED:: Most important Previous years questions

1. Section on which partners are defined
2. Tenure of director of banking company
3. Preservation of records
4. Maximum share in company related one question
5. Question to the condition on which depositor has to deposit-25% amount
6. Who has power to inspect bank-rbi officer, state officer,police officer, custom officer
7. Bfs-one director nominated by
8. Central government power in banking
9. Term loan given and default occurs-limitation period-3 years
10. A issued a check with amount 300 and left space in both side i.e. in words as well as
figure. Some employee forged it to 3300 unknowingly and sign style was little different
but it was cleared-who should be responsible
11. Question related to responsibility of collecting banker
12. A cheque is a drawn on some bank what collecting bank should do
13. Check crossing related one question
14. Liability of paying banker
15. There is one partnership firm ABC. With operation E/S upto the limit of 5000. A
draws cheque to B for 4553. B transfers it to his account…then who is liable wand what
is the role of bank here
16. A minor shares profit of the firm does he will be have liability with the firm if
something went wrong
17. An OD facility is given the customer he but he has drawn beyond his limits and also
many cheques have been returned-what a bank should do?
18. To which type of company there is restriction on transfer of share-private company
19. Main objective and other objective are mentioned in-MOA
20. Question based on types non fund based credit facility21. No of parties in indeminity-2
22. A lost FD and asking bank to reissue duplicate bank issues it- what is the role of A
here?-indemnifier
23. Right of indemnity holder related one question
24. Types of bank guarantee based one question
25. Liability of a bank to honor BG
26. What does negotiating bank does?
27. Question related to with recourse and without recourse lc
28. DPG-deffered payment guarantee based question
29. One case study was given with relation to simple mortgage and equitable mortgageratio
of share on default was asked
30. Types of mortgage with examples, gold loan, car lone, home loan, lic policy arrange
it
31. What is fixed charge
32. Registration of charge-central registry
33. Banking ombudsman:
a. Matters where complain ts can be made
b. If not satisfied with BO then to whom w e should approach
34. Effects of non-registered company
35. DRT AND DRAT based question:
a. who is higher authority of drat
b. power to modify drt-central go vt
c. case related where only it can be handled by DRT
d. Property is somewhere loan is taken from another place where drt has to be
approached?
36. SARFAESI ACT based question:
a. Validity
b. Security interest
c. Security receipts
d. Cancellation of re gistration of SRC
e. Powers and its applicability , enfor cement of security interest
37. A guarantees OD for his son that it will be paid- which type of financing it is?
38. Bankers book evidence-prima facie related question
39. Consumer complaints
40. Who is the head of state consumer protection council-minister in charge of the
consumer affair?
41. Question related to tds and TAN NUMBER
42. CONDITION of contract
43. Liability of surety
44. Bailment of goods
45. Right of unpaid seller
46. Rti applicability area
47. Supply bills related 2-3 questions
a. It is related to whom
b. To whom it should be financed- 2 marks
48. Hypothication
49. Pledge
50. Mortgage
51. Charge
52. Contract of sale
53. Minor account
54. Question from FEMA
55. Reverse mortgage
56. Fees of RTI
57. Term of director of bank
58. Who is regulatory authority of DRT
59. Security receipt
60. Floating charges/Fixed charge

1. Members of public and private company - Public - Min-7, Max-No Restriction. Private -
Min-2, Max-200
2. No. Of directors in public and private company - Public - 3 to 15, Private - 2 to 15
3. Interest payable by RBI on CRR - 0 %
4. Pledge hypothetican
5. What is equitabe mortgage
6. NI Act
7. RTI
8. Questions based on limitation period
9. Diff b/w partenership and company
10. Questions on mortgage and cheque
11. Heads of object of memorandum of association
12. Related equitable mortgage
13. BR act
14. Partnership accounts
15. Person appeal to drt after receiving reply from sc with in period of
16. payment and settlement system regulated by
17. About mortgage types 4 questions
18. FEMA deals with transactions of
19. Bailment & pleadge
20. Equitable morgatge
21. Lc
22. Deferred payment guarantee
23. Limitation
24. In how many days TDS file to gov
25. For cancel of lease or rent how many month notice?

1. Section 131
2. Actionable claim
3. Which one is NI
4. Equitable mortgage
5. Mortgage deed is necessary foe which mortgage
6. Which LC is called anticipatory credit
7. Members and directors of pvt and public company (2questions)
8. Which is not a company classified under liability category
9. With what memo a cheque should be returned if collected by one bank and presented
by other bank
10. When a partnership will dissolve
11. Demand notice period under SARFAESI-ACT
12. DRT is applicable for : SBI, nationalised, RRB, all
13. DRT
14. Bank Guarantees
15. Many questions on mortgages
16. Income tax act
17. Preference shares
18. LC
19. Bill of exchange
20. Agreement
21. Hypothecation
1. Clatons rule
2. Minimum directors-3&2
3 Around 8 qtns from mortgage. like english, equitable, act for mortgage etc.
4. 4 qtns from MOA & AOA of company
5. Doctine of constructive
6. Diff. partnership and company
7. Indemnity-loss of fdr
8. Hypothication
9. Ddiff. pledge and lien
10. Consumer complaint act-complainant
11. Credit card award-1 lakh
12. Common seal
13. Green letter of credit
14. Negotiating bank
15. Surity is -secondary
16. Deffered guaranty
17. DRAT head post
18. Chq alteration not visible to naked eyes bank not liable
19. SARFAESI Act apeal to drt in how many days 45
20. LC credit related question credit allow something like that ans green lc
21. BO related complain how many days to dispose by BO.
22. RTI how many days to required by the PIO to settle the information.
23. Not registerd partnership firm related question can sue or not.
24. Min No of director in public and private
25. Arbitrage

Under which section of income tax donations come? - 80G of the Income Tax Act
Min and max no of member in private companies - 2 & 200
No. of members in public limited co (Min & Max) - 7 & unlimited
Banking ombudsman applicable - in whole india
Indemnity which type of liability? - Contingent.
Who can rectify the clerical or arithmetical errors in order passed by DRT? - Presiding
officer
Which income doesn't come under service tax? - Interest income
Within how many days can a consumer file complaint if he is not satisfied with the
service? - 30 Days
Which is the negotiating bank in case of LC? - Exportrs country bank
Relationship between bank n customer in case of pledge - pawnor-pawnee'
Debt recovery tribunal established by - Government of India under an Act of Parliament
(Act 51 of 1993)
How many types of LC ? - 8
Jurisdiction of appellate tribunal - The Central Government is also empowered to decide
and specify the areas within which the tribunal may exercise jurisdiction for entertaining
and deciding the applications filed before it.
DRT applicable - Above 10 Lakhs
DRT is controlled by - Recovery of Debts Due to Banks and Financial Institutions Act
(RDDBFI Act), 1993
RTI is not applicable to - J&K
UCPDC 600 is in respect of - Letters of credit
Pay as you earn is a...... tax - is a withholding tax on income payments to employees
20% profits should maintain with rbi - NBFC
NI act application - Whole India
Cersai time limit - within 30 days of creation of mortgage
Bills payable on demand are - paid when the payee asks for it.
Term of every member in national commission - 5 years or up to the age of seventy
years, which ever is earlie

A securitization company carries out the function of - Acquisition of financial asset from
the originator
Limitation period of for takng immovable property under sarfaesi? - 12 Years
Amount of TDS should be submitted before how many days? - 7th of the next month
Number of directors of private company? - 2 to 15 (Min & Max)
Casual vacancies of directors can be filled by? - the Board of Directors at a meeting of
the Board
Collecting bank will get safety under NI act for what - Forged sign of endroser
Which is not consider as NI - Share
Tax dedcuted from salary has to be payed as on - Monthly basis
Limitation perod for foreclosure is - 30 Years
Llimitation perod for possession of immovable property is - 12 years
Banking regulation act 1949 - Regulates banking

Banking ombudsman 4 questions
DRT appllete is headed by ........appointed by central govt.
LC 3 questions case study 1
Advising banking is called......
Whether advising bank is to take part in liability of LC
Macmillan book back questions 5-6 - Average 3-5 questions coming
Key used to create digital signature.....Private key
RTI Act .....Getting info from.....Public authorities
Exemption of RTI Act
Bankers book evidence 2 questions one from Macmillan book
How much we have to pay to get copy from the abovesaid paper n copies...
Sarfaesi 3-4 questions out of one case study....
What type of charge in case of goods under manufacturing.....
Under pledge unlike mortgage....Some differences were given in the options
N deposit in bank Z with branch manager C .L is the introducer of N.N got LOD from
that bank.Who has lended to whom?
R has shares in limited company.R dies what will happen to shares.....?
In case of safe deposit vault, customer is called as....
X a customer lost the TDR and bank gave duplicate receipt receiving indemnity from
X.Here who is indemnified to whom?
Parties in a contract......
Bank guarantee 2 questions...

What is reverse mortgage
Tenure of banking ombudsman
Fee require for RTI
Mode of accepting complain by banking ombudsman
One question on arranging orders for different type of mortgage
One question on arranging orders for different type of charges
Limitations period will be extended,-on credits to ac
Material alteration of cheque without authentiaction of bearer
Bank buy a cheque from A and give advance but cheque got returned-from whom bank
will recover
A presented a cheque for clearing and went abroad, cheque got returned for financial
reason after I year. A returned and found no credit in his account and bank lost the
cheque- responsibility of bank and customer
Lmitaton period of of account
Lok adalat is conducted by....

No. of max members in pvt company - 200
........................................
Pawnor pawnee
The bailment of goods as security for payment of a debt or performance of a promise is
called "pledge". The bailor is in this case called the "pawnor". The bailee is called the
"pawnee".
............... .........................
Min deposit to appeal to DRAT - 50000
........................................
Min and max directors in public limited co -
........................................
Complaints can lodge to banking ombudsman through - Authorised Representative
........................................
Safe custody of articles.. Bailment
........................................
Clubs n societies r registered under - either under the Companies Act, 1956 or under the
Societies Registration Act or the Co-operative Societies Act
........................................
Sale notice period ie. 30 days
........................................
Authorized officer of public sector bank min designation.. Chief manager
........................................
Jurisdiction of filing suit - at place of mortgaged property situated
1.Deffered credit
2.minimum and maximum members in private company..
3.accalaration.
4.equity mortgage..
5.demand biill also called as sight bill.
6.presiding officer tunere...
7.relationship in safe locker ..bank customer.
8.relatioanaship in loan on FD..
9.pladge..
10..origanater.
11.about drt
12.3days for book evidence..
Under how many phases is cases of sarfaesi settled under civil courts?
EM is required to be done in specified town of property
Payment to minor
Right of member in a company
Fund based non fund based
Metropolitan Magistrate
Endorsement in cheque
Advantages of corporate form of enterprises
To whom the assignment notice send in case of loan taking against insurance policy
Lok adalat max compensation?
Banking ombudsman
Title deed not required to be deposited in whch type of mortgage?
Mortgage-transfer of property act
Sale of goods act

partnership
Huf law
Safe deposit locker
FEMA
3 - 4 case studies on protection to collecting banker and paying banker
Appointment of banking ombudsman , regulation of tenure of banking ombudsman
Minimum and maximum number of members in private company
2-3 questions from MoA and AoA
Object is described in MOA /AOA
Difference between partnership and company..
If a director in company wants get member of another company what needs to effect in
both companies article of Asso.
For how many years a banking company use non banking assets- 10, 11,12 or 15 years
Mutual fund transaction which kind of account in dealing foreign transaction.
RTI act not applicable which of the following
Renounce sport board
Cabinet ministry
AD bills
Floating charge
Fixed change
If a customer deposit an order cheque to A bank and A bank put a collection stamp on it
but customer take the cheque and deposit to B bank but B bank return the cheque.What
The B bank site the return reason
National commission tenure
What is the conversion?
HUF created by
Who pays money to beneficiary in LC
Appeal days in DRT
............................. ...........

E filing system in charge registration
........................................
Contract two to three questions
........................................
SARFAESI act applicability
...................................... ..
DRT Applicability
......................... ...............
Banking omb
..................... ...................
According to tax lawas income definition
........................................
Major powers of RBI
.............................. ..........
Rti act
........... .............................
Law of limited for foreclosure of mortgage
........................................
What is called judgment of Banking ombdsuman is.Award
........................................
Indemnity
security or protection against a loss or other financial burden.
security against or exemption from legal responsibility for one's actions.
........................................
Deferred payment guarantees



Jaiib Legal Recollected: 2018 May

Lc se question tha

Lok adalat

Ni

Indemnity

Gurantee

Collecting banker

Awards under banking ombundsman

5 questions from FEMA

Limitations act lot of 2 marks

Bailee bailor pledge mortgage

Mortgage 3-4 question English n equitable

Paid up capital
Securities questions
Saffaesi 2-4 questions
Lok adalat 3 questions
Ultra vires questions

Equity mortgage questions

Collecting bank 2 questions