Caiib single link for recollected questions

CAIIB ABM TODAY EXAM 55 QUESTIONS RECOLLECTED by Srinivas Kante 1.Hicks -Hansen synthesis 2.Basic difference between IS and LM curve 3.Increase in money supply Lowe interest rate and raising inflation 4.NDP @factor cost 5.Demand –pull inflation means 6.Erosion as per the role 7.Climate Survey 8.Case study one related to Budget 9.Central limit theorem 10.sampling methods . 11. job erosion 12 curreneaccountdefficit 13 Gross deficit etc. case 14..standard deviations mean related 15 .Case 3 Xyz jewellery shop Related But the level oh complexity is very high..n .. 16 fiscal policy ,monetary policy 17.demand supply curve etc... 18.Correlation and regression numerical 19.NNP @ factor cost 20working capital 21. bank guarantee 22.Performance Appraisal 23. Halo effect Tendency.. 24.NNP at market price 25.In correct characteristics in Business cycle 26 Notional income also known as.. 27.Least squre method used in.. 28.Fctoring of services the factor 29.Lender to sensitising test and scenerion analysis..Type of loans 30. Debt to equity of enter prises raatio is.05 its... 31.Bank Gaurantee to commoidity brokarage (margin %).. 32.find P(x bar >/85) ? 33Std error of the mean is???? 34 Estimate of the population proportion is.. 35 Commericial paper issued multiples of.. 36.Commericial paper issued maximum period 37.Find P(88| 39.HRM 40.monetary policy 41.Annuity due prblems 42. Future Value problem 43.Estimation 44.Bond price 45.Revenue dediciat problem 46.Job evealution Job specfication case study 47. Turn over methodeapplied on leass than 5 cr 48. Factor of Supply schedule 49.Lional econmic statement. 50. GDP calculation 51. GNP at amrket price calculation 52. Sampling Methodes 53.Hallo effect 54 Cov(X,Y)=150 mean X=20 mean Y=10 standard deviation x=25 then equation of regression line is 55. 3 questions from HRM 5 marks each

Today CAIIB BFM Recollected questions by Srinivas Kante June 10 , 2018

1.Most of the questions from foreign exchange    numericals

2. case study on DGAP, Leverage ratio

3. case study on LC

4. Risk weight on Housing loan

5.Diffence between basis risk, gap risk, and yield curve risk

6. Letter of credit related

7.Capital charge for PR questions

8.Problems on NII

9.YIELD On T BILL

10 .Tier 1 CRAR

11.Call risk

12.NRE ,NRO, FCNR account related

13 Beta factor and basic indicator approach

14.The main object of the LRM loan review mechanism

15.The notional transit period permitted ..

16. One case study on asset liability management

17. Exchange fluctuation risk of ecgc

18. Rupee account... nostro,vostro,loro,mirror are in option

19. case study on TT buying, selling

20. RAROC,Who decide maximum limit of risk

21.Corporate debt instrument characteristics

22.Basel 3 bank apply – for computing capital requirement from existing risk..

23.residual risk also known as..

24.Elements of common equity Tier 1 cap

25.In repo transaction in G-sec , the settlement carried in  first leg is ------------ basis

26. BASEL 3 going concern capital is

27.Liqidity risk is a type of time risk??

28.GOI not issue T bill with ------------maturity days

29.Notice money market period is…

30Duration is the elasticity of the bond

31.In CP Buy bank offer may not be made before ----days

32.Features of hedging , Int, Arbitrage ,trading , Investment

33.Nostro Accounts are – accounts

34.Emp option risk about pre closure

35. Feature of CCB  BASEL 3

36.FX clear is a forex dealing sym developed by

37.Features of CRR

38.Calculation of LCR under level1  Asset

39.Cross rate

40.Charactristics of foreign exchange market

41.Temporary Asset--- revaltion not present

42.Calculation of capital for General market risk

43.In stock of HQLA for the purpose of cap liquidity coverage ratio…

44. BCBS introduced new approach called..

45.Instrument having lower demand and trading…

46 In india short position allowd..

47.Features of LCR

48.Rapid Growth period bank can make…

49. RAROC,Who decide maximum limit of risk

50. case study on TT buying

51. what does CRR impact

52. no.of key  priniciples in Supervising review process

53. Features of CCB in BASEL 3
54..5 marks case study from CALL and PUT option

55.Rupee account Vostro or Mirror?
56. Calculate price for a 270day CP having face value 100/- when yield is 7.57%?
a. 94.6970,a. 94.6770, c. 94.6570, d. 94.6370
57. Calculate yield on a 182 day T bill issued at 97.30/-?
a. 7.57,b. 7.75, c. 5.57, d. 5.75%
58.no.of key priniciples in Supervising review process
59. Features of CCB in BASEL 3
60. 1.yield in tBill
61.rwa
62. Case study o. Nii and nim
63. Case study on rwa and capital charge
64.case study on leverage ratio
65. Case study on lc , advising bank confirming bank etc
66 case study on foreign exchange
67. yield to maturity 02 questions asked
68.call money Nd term money
69. Approach basic indicator approach , advance approach
70. M duration
71. piller 3 ,spr
72. 5 marks case study from CALL and PUT option
73. NII - 5marks
74.CRAR - 5marks
75.FEDAI - 5marks
76.Exchnge rates- 5marks
(USD to INR)
77.Exchange rates - 5marks
(USD - Jap yen - GBpound)
78. Lc - 5 marks
79 DGAP nd Levarage ratio - 5marks
80.5 questions on USD JPY against foreign person returning to India  

CAIIB Retail Recollected 2018 June ::

Recalled questions 

Bbps

Case study on hl income tax claim

Fv n pv

Fsi

NFS details

Credit card

Free charge

Emi Calculation, Rule 72, Questions on CIBIL,  SLM and WDV

 housing loan cs education loan cs bbps cs ekyc depriciation cs question on time value of money and also more and more question on theory part

 Case study on

BBPS

HL income tax

CKYC

Depriciation

Case study on

Bcsbi 5 que

 Imps,UPI, *99#,mmid

[Credit card 5 que

 Sarfasi,, lokadalak, drt 5 que

Car loan new oold car 5; questions

Housing loan tax benefits 5 que

 Slm , wdv depreciation 3 que

Fund transfer mobile banking maximum    per transaction and max per month per beneficiary

[Sub prime loan

[Bank charges under charge against future receivable        cersai form 1 or 2 or not applicable

 Mortgage act

[ RTGS and neft

 Method of valuation of land and buildings which is to be attached as security for bank

 Product development stages

Rule 72 compounded annually  doubles in 7 yrs and 6 months option 9 .6,10, 9.3,9

 Demat account can be opened in banks or DPS or brokers
If a bank issue card to customer and 10 lakh insurance cover what type of card bank issue rupay, visa, master, mastro
 If credit card a person purchases for 12000 at 37.20 annually.               Per month interest.  Per day ,, if he pays within time limit what is the interest charged

How can a bank protect themselves if he is relieving information about the customer
Ombudsman settlement

Kyc aml

• Dispute between banks and reconstruction company securitization

[Back loading emi
 If a person wants to invest in a 10 yrs  pention plan  plan name?? Pmjsy, pmvvy, Jay,jsy
[Machinery value 1200 lakhs salvage value 300. End of 6 yrs under wdv method 15%
When salvage value become zero

Dep under straight line method
Cumulative depreciation value of 3rd 4th year under wdv


CAIIB HRM Recollected questions

Organic structure organization definition

Definitions for norming and performing (stages of group development) 

Questions on six leadership styles (5 questions asked) 

Definition of process diagnosis(in bpr implementation) 

Identify best practices in change management

Key factors for successful implementatition of change within organization

Chief insecurity of most staff is change itself

Identify steps to successful change propsed by John p kotter

Responsibility charting is foundation for strong delegation

Forecasting activities in human resource planning include

What are two types of knowledge

In RAKID R stands for

Commonly used knowledge management tools are online discussion forums,  online conferencing,  communities of practice

Employees and managers can be classified in 4 categories.  Identify-activist, reflector,  theorist and pragmatist

Characteristics of training new generation - it should be short,  entertaining,  allows freedom

Problem on ROI

Definition of ROI

Types of motivation

Definition of motivation

Lowest need in need hierarchy theory

Which of the following is not hygiene factor-recognition

Goal efficiency is effected by- proximity,  difficulty and specificity 

According to Steven reiss motivation theory,  how many basic desires?  16

Status is defined as need for social standing and importance

Human resource implications 

Augmented learning-learning where learners interact with e learning environment 

What are 3 domains of learning - cognitive.  Psychomotor and affective

Psychomotor involves what characteristics

Principles of learning -  readiness,  exercise. Intensity and recency

One question on perception

Adult learning feature identify the wrong one

Definition of functional comptency

External factor effecting demand forecasting

One of the following is not advantage of external recruitment 

Question on body language

What are the legislation on working conditions.  Identify wrong act

Registering trade union gives then legal status

One of the following is not a social security act

BFM Recollected questions::

Daily votality is 5% 2.5 Find modified duration - Ans is 2.38

STRIPS (Separate Trading of Registered Interest and Principal Securities) is a ...... zero-coupon securities

Which is not a derivative product ? - Repo (Swap, Option, Forward, Repo)

ECB limit - USD 500 mn up to minimum period of 5 years and USD 20 mn up to minimum period of 3 years without prior approval of RBI

ECB is denominated in which currencies.....USD, Euro or JPY

Consessive rate of interest on postshipment rupee export credit to gold card status holder can be extended maximum - 365 days

One importer want import one machine from China.He has to open lc. The exporter wants advance payment. What type lc - red clause

Value at risk is a measure of? Gap risks in foreign exchange operations

Which office not under treasury ? Options given r Mid office, back office, front office, legal office*, 

Under standard assets, provision for loss, RSV should be?? Ans - less than 10%

If interest of principle is not serviced for 90 days, what is the position of account? ans- outof order

Basel 3 teir 1 components. (Plz remember that Revaluation reserve is also now under Teir 1)

If treasury assets r withdrawn before maturity, what type of risk is it? ,

A 91 Day T bill of 93.21 wl have yield of? 

If 91 days treasury is 88., then its implied yield is?

ICAAP is related to? 

ADR related question

Double forward is called what ?

Related to Nro account

Nro account can be opened as sb,CA,FD type

Derivatives also lot of questions

Advising bank roles ... Like what he can do what can't

INCOTERM

IRS

Swap

Risk weightage

Lot of RWAs questions

Which is not included in calculation of NDTL/DTL for CRR/SLR

Component of tier 1

Rwa as per Basel III for housing loan based on LTV

Many questions sellect correct or incorrect about NRO NRE FCNR ECB EEFC CCIL

Estimated occurence of probability

Questions on currency derivatives, forwards, swaps

Forex market characteristics

One question related to embedded option risk

As per basic indicator approach calculation of capital charge 15% of average gross income over there years given but one of the year is having negative one that we have to ignore.

8.83GS2023price100.49 with yield 8.75 .....just it is given and based on this statement he asked for 5marks

Crystallization period for export

One question on American and europian option

Capital charge on operational risk based on standardized approach and basic indicator approach

Questions on ADR AND GDR

Questions on option and forward contact, future

Loan To Value Ratio

Risk Weight %

Swap Defination , ADR and INCOTERMS

RWA calculation for operational risk under Standardized approach

DGAP

Conceptual question on FCNR, RFC, NRO, NRE

Operational risk calculation all approaches

Modified duration

Tier 1 n tier 2 numerical

LC based case studies for 5 marks

Basic inducater appoach market risk 5 number

Modified duration of equity5 ques

Calculations of capital adequacy ratio quite a few questions

10 questions at from various risks associated with Treasury operations

Interest rate swap 5 questions

Bill buying 5 questions

EXCHANGE RATE

AAA A BB Rating Chart Questions for Risk Weighted Calculations

Yield Calculation

W RSA,RSL NUMERICAL

RATED BOND NUMERICAL

Yeild of bond numerical

BASIC INDICATOR APPROACH NUMERICAL

BPV

Forex t.bill 

Leverage 

Forward contact

CRAR

Operational risk

Treasury theoritical

60question theory easy

No ques from volatility and bpv

Call risk problems

packing credit problems

Rsl. Rsa.. Md problems

Leveage ratio related case study

BASEL III Tier 1 Tier 2 capital Minimum equity ratio related 

BFM Book page no 415 ICCAP related question

BFM Book page no 443 stock approach related 05 question

BFM Book page no 477 - RSL/RSA/DGAP/Modified Duration Gaps

BFM Book page no 20 - Export Bill 5 marks

BFM Book page no 295 - Estimated level of Operational Risk 

Case study numerical-TEIR 1 TEIR 2 CAPITAL CONVERSION BUFFER QUESTION BASEL ON BASEL3

Case study on RFC account 5 marks

Case study on forex exchange buying commission etc 5marks

Case study on mkdified duration gap 5marks

VAR - 1 QUESTION 

TEIR 1 COMPONENT-2 QUESTION

CBLO- 1 QUESTIOn

Case Studies on

1. Cancellation of contract

2. NRE/NRO POA

3. RWA

4. MEAN & SD

5. SLR

6. YTM

7. SHORT LERM & LONG TERM GAP ASSET VS Liabilities

8. NII & NIM

9. Tier1, Tier2

10. Capital adequecy

11. Nostro Vostro Loro

12. Daily volatilty

13. Stop loss limit

14. Operational risk case study

15. Foreign exchange numericals

16. Swap numericals

17. Liquidity case study

18. Forward rate agreement 25 crore 3 month swap, three year three business line calculate yield and risk weightage

19. Calculate CET Basel 3

20. Calculate Aadditional tier 1

...........................................

2 to 3 question duration

5 question export bill(cancellation of contract rate, margin amount,rebook rate,etc)

5 question on capital adequacy (balance sheet provided, compute equity capital, tier 1 capital, total rw, capital adequacy, buffer capital)

5 question on nostro,loro vostro

5 question on FRA 

5 question on net interest margin 

2-3 question on bonds

3-4 question on LC

some 2-3 sums on bpv

...........................................

1. Rate qoute 1 ques

2.LC partial delivery UCPDC rule

3.FRA 6*9 dates of delivery and maturity

4.case study on rules and guidelines regarding NRE, NRO and FCNR accounts- amt of loan,POA,remittance,fund transfer limit etc

5.coupon swaps,forward contracts

6.securitization-SPV or Commercial bank allocation of assets 

7.Case study on NII,NIM,EER

8.Case study on Cash flows,deviation during years,SD/mean

9.ECGC insurance premium bear by?

10.CHIPS-USA

11.treasury risk management 4-5 ques

12.European put option

13.Authorises person categ 2

14. ques on BOP expansion 

15.bank margin calculation from rates 

16.Stop loss given- asked whether buy or sell at what rate to book profit or stop loss

17.monthly volatility given-calculate daily volatility 

18.modified duration calculation 

19.case study on Nostro Vostro and Loro and Mirror accounts

20.which is not an off balance sheet item of following 

21.crystallisation of sight bills 30 days

22.LC date expired due to bank closed due to hurricane UCPDC rule

23.standard ECGC policy cover-political risk

24.basel III - tier 2 capital req of total risk wtd assets, pillar 3 def

25.standardised approach and basic indicator approach and AMA all methods for operational risk calcualtion

24. volatility can also be measured by?

25.price volatility depends on yield volatility,BPV,Yield and price

26.VaR related 2 ques theoretical

27.derivatives hedge underlying risks

28.call risk

29.Maturity ladder or baskets case study

30.provision coverage ratio def

31.asset liability mismatch

32. Bond ytm,current yield 2-3 ques


CAIIB RETAIL BANKING PREVIOUS YEARS RECOLLECTED QUESTIONS BY Srinivas Kante

1. Sukanya samridhi yojana
2. Atal pension yojana
3. Basic saving ac - 1 qtn
4. Customer relationship management
5. Full form of CIA
6. one on IMPS
7. future value 2 qtn
8. BCSBI 7 qtn
9. Education loan 5 qtn
10. Who give subsidy on mudra loans?
11. One question on rule 72?
12. Ordinary annuity one question?
13. Product stage
14. Mobile banking limits?
15. Safety esteem self actualization
16. Reliability responsiveness
17. ROC pulling
18. Max limit for prepaid instruments, expiry of prepaid instruments
19. Mudra loan - It is 50000 to 10 lakhs
20. 80c rebate? - Rs. 1.5 lakhs
21. Withdrawal allowed in ATM's?
22. CERSAI is formed under which act?
23. Many questions from retail banking services
24. Reverse mortgage
25. Para banking
26. 80C limit
27. PM fosol bima yojona
28. CTR
29. CERSAI - which act
30. PMSBY - claim amout after losing one eye or one leg or hand
31. PMEGP - implemented through
32. POS
33. EWS_size
34. RML
35. CRM gap-iii between
36. Merchant banking means
37. Closed ended fund
38. APY
39. Advantage and disadvantage of retail banking
40. Limit of cash withdrawn from other bank ATM. Option 5000, 100000, 20000, 2500
How many neft settlements in a day?
Tax benefit in Home loan
Credit card cycle
NEFT/RTGS max n min limit
Basic diff.b/w rtgs n neft
Benefit of pvt. Banking
Wealth mgmt for corporates
Education loan repayment/defaults
EMI
Income tax
Rule 72
Essence of crm
Bharat bill paymnt systm
Priority of charge in mortgage
Brown label atm
Purpose of securitisation
Conditions for pension fund mgmt
Mutual fund conditions for bank
Approval for insurance
Propagate model
7Ps
ATM transactions in metro cities
SARFAESI
DRT
Internet banking
Mobile banking
Internet Banking- strategy adaptation
Depreciation by both methods
Capital gain
Annuity
FSI Calculations
Full form of CDO
Product meaning??
Airline company used which model..SBU..INTEGRATED MODEL???
RUPAY card is issued by NPCI
Case study related to Internet banking 5 questions
Case study related to credit card charges and other
Register mortgage date and deposit of title deed
Implementation model related
WRBR.. Full form??
Date of execution of documents.. 4 months
Augmented product...
Expected product...
Under NEFT, number of settlement on week days are..12
RTGS minimum and maximum amout...
Disadvantages of Retail banking...
Mobile banking maximum amout per txn and monthly threshold related 5 questions
IFSC CODE TOTAL ALPHA..and numerics
SFMS
Question on hni, super hni, ultra hni category..
Wether the cibil report can be given to customer after levying some charge or not..
Whether moratorium is given for second hand car...
Moslow theory : Case study on needs
RTGS : when processing
Education loan : case study about margin
On college fee hostel fee computer fee other expenses..
WDV : Case Study on Depreciation l
Credit Card : Case study on interest , risk , overdue amount....
Valuation of urban land ,agriculture land Method criteria etc.....
NEFT : 12 batches
Super affluent : 50-400 Lakhs
Case study on wdv method
Three questions on rent capitalization method
Case study on maslow hierarchy
Case study on tangibles..assurance..responsivess wale 5 factors
Emi calculation 2 questions
Theory was easy
Sbu 1 question
Horizontally organized model
credit card bill (case study 5 qus.)
Three questions on rent capitalization method
Neft batches - 12 batches
depreciation numerical...
case study on gift card...
Fullform of USP - Unique Selling Proposition
case study on education loan for abroad...
1. 2 Case studies on priority charge on mortgage
2. Problem on depreciation(By WDV)... eg. Wht will be the book value after 3 years?
3. Calculating future value
4. Diff between NEFT and RTGS
5. Questions on DSA
6. Case study on tax exemptions ( both interest and principal repayment)?
7. Prob on Depriciation by straight through method?
8. What does securitisation means?
9. Risk involved with DSA?
10. Questions on Potential product PROPAGATE?
11. EMI Calculation
12. Questions on vertical, horizantal model
13. How Many NEFT settlement on weekdays and saturday
14. How many characters in UTR?
15. Question on WRBR
16. Case study on education loan... all the fig are given ( eg. Hostel fee, tution fee,
other expenses and bank margin).... we have to calculate max permissible bank loan
17. One critical case study on credit card... credit card limt, free int period, int rate, over
limit penalty, due date and purchase date are given... We have to calculate int chraged
a. if the customer pays the amt due after 18 days from due date
b. If he pays half amt before due date then calculate int charged for remaining amt on a
particular date?
C. If the amt cro sses the limit then calculate the amt he has to pay
18. If we allow overdraft in CC a/c and the customer does not repay it, then can we
approach DRT ? There are four options and we have to choose the correct one
How many neft settlements in a day?
Tax benefit in Home loan
Credit card cycle
NEFT/RTGS max n min limit
Basic diff.b/w rtgs n neft
Benefit of pvt. Banking
Wealth mgmt for corporates
Education loan repayment/defaults
EMI
Income tax
Rule 72
Essence of crm
Bharat bill paymnt systm
Priority of charge in mortgage
Brown label atm
Purpose of securitisation
Conditions for pension fund mgmt
Mutual fund conditions for bank
Approval for insurance
Propagate model
7Ps
ATM transactions in metro cities
SARFAESI
DRT
Internet banking
Mobile banking

1. Case study on Prepaid instrument
2. Case study on Depreciation WDV and SLM methods
3. Case study on Bharat Bill Payment System
4. Case study on CERSAI
5. Case study on ekyc
6. Case study on car loan?
7. Case study on 'housing loan for all' by newly launched scheme
8. Case study on Vehicle loan
9. Case study on Credit card billing
10. Case study on Education loan problem
11. Case study on Future value of ordinary annuity
12. Case study on BCSBI - 10 questions (theory based)
13. Case study on Future value of bond/annuity
14. Case study on Maslow Needs
15. Case study on CRM
16. Case study on EMI
17. Case study on Capital gain
18. Case study on Calculate Present value
19. Case study on RML

Question on hni, super hni, ultra hni category..
Wether the cibil report can be given to customer after levying some charge or not..
Whether moratorium is given for second hand car...
Moslow theory : Case study on needs
RTGS : when processing
Education loan : case study about margin
On college fee hostel fee computer fee other expenses..
WDV : Case Study on Depreciation l
Credit Card : Case study on interest , risk , overdue amount....
Valuation of urban land ,agriculture land Method criteria etc.....
NEFT : 12 batches
Super affluent : 50-400 Lakhs
Case study on wdv method
Three questions on rent capitalization method
Case study on maslow hierarchy
Case study on tangibles..assurance..responsivess wale 5 factors
Emi calculation 2 questions
Theory was easy
Sbu 1 question
Horizontally organized model
credit card bill (case study 5 qus.)
Three questions on rent capitalization method
Neft batches - 12 batches
depreciation numerical...
case study on gift card...
Fullform of USP - Unique Selling Proposition
case study on education loan for abroad...
Numericals from book about
Encumberence ratio
Tax saving on HL
Case studies under IBA education loan
Calculation of PV FV
Case study on reliability, tangibility, assurance (customer expectations)
Masala bond
Prepaid instrument
MSME act
Full form of USP
Who heads DRAT?
Sum on WDV and SLM
................................. ......
Case study on UPI
AEPS
REVERSE MORTGAGE FOR SENIOR CITIZENS[RLEAC]
problems on straight line
WDV method
Educational loan on foreign study
5q on empathy,responsiveness,assurance
2q on augmented, core product
Reverse mortgage equity linked case study
FSI construction cost based
UPI based
80c/24(b) ICT act 1961 based
Priority sector in different sector with perc of ANBC
PROGATE full form
BBPS component
fraud in operation risk
straight line method
written down value method
encumbrance value
Home loan
Service quality based case study
PPI based case study
Total compound interest applicable
EMI
Present value and future value
Full form of MMID ?
UPI transaction max limit ?
Mobile banking per day and per month limit?
Housing loan % of priority sector?

Margin for RML (Reverse Mortgage Loan) with annuity ?

Re collected questions of caiib abm June 2019

Re-collected questions posted by our members
---------------------------------------------------------------

1. Calculate GDP GNP, increase/decrease in GDP GNP

2. Calculate NNP 5 MARK

3. Freedom to learn comes under ? Ans : Organismic or humanistic theory

4. Sampling calculations

5. Break even point

6. NPV

7. NPA provision calculations

8. HRM 2 case study - Motivational factor, Appraisal, Training, Performance appraisal, career path planning, attitude etc
(Maximum question from HRM, Most of theories from HRM)

9. Numerical questions on Bond

10. 5 questions from Priority Sector Lending (PSL). To calculate NBC, ANBC, RIDF contribution, Weaker section - 10%, Micro enterprises - 7.5%

11. Calculating present value

12. Union budget 2018-19

13. 5 questions on linear programming

14. Demand & Supply break even point case study

15. Budget deficit sum

16. Many questions on simulation and time series

17. Effective ROI

18. Fiscal Deficit, Gross Fiscal Deficit, Personal Income

19. Case study based on export working capital limit

20. Calculation of national income and personal income

21. About CLR and SLR

22. Wealth theory By?

23. 1991 reforms which one not done?

24. Demand and supply equilibrium curve model 5M - Graph given

25. Motivational theories 1 mark questions for 5 questions

26. Performance appraisal method - Case Study 5 Mark

27. Difference between micro and macro economics

28. 5 questions from demand and supply curve

29. Cash budgeting

30. Employees feedback system

31. Job analysis

32. Calculate ANBC FIGURE

33. Calculate weaker section lending target

34. Johari window concept

35. Calculate Net Working Capital (NWC)

36. Calculate acid test ratio

37. Demand deposit with banking system includes what all?

38. 5 marks questions on Letter of credit and export credit

39. HDI rank of India?? 130

40. Functions of money

41. Meaning of "ends and scare means"

42. Laissez-Faire economy

43. Bond inversely proportional to interest

44. Tertiary sector

45. Tools of monetary policy

46. End of the period Annuity formula

47. Effective rate of interest calculation

48. Usage of Linea programming

49. Defination/Meaning/Use of Job Specifications

50. Related to Learning Theory

51. Related to career concept

52. Related to career path

53. Schein's Career Anchors

54. Locus of control

55. Transactional Analysis

56. Emotional Intelligence

57. TL, CC, LC sequence for a given case

58. 5 Questions from a case study regarding RBI guidelines for fund allocation for priority sectors

59. Acid Ratio Calculation

60. Turnover ratio calculation

61. Steps of loan document appraisal... stamping, filling, checking,etc

62. NPA account time frame for different categories

63. Micro and macro economics

64. Cash budget will be applicable on ...... 1. Educational institutions**, 2. Contractor, 3. Dairy farming taken, 4. Traders

65. Numerical questions on ECB - 5 marks

Treasury products

TREASURY PRODUCTS
1) Which of the following currency is not fully convertible?
a) USD b) EURO c) INR d) GBP
2) What are the Spot Trades?
a) It is the process of settlement where payment and receipts of funds are settled in respective currencies.
b) The settlement takes place within 2 working days from the trade date.
c) Currency may be bought or sold with settlement on the same date i.e. To day (TOD)
d) The settlement can be on the -next day he. Tomorrow (TOM)
3) Which of the following is significant about spot trade?
a) All rates quoted on the screen are for spot trade unless otherwise mentioned
b) TOD and TOM rates are generally quoted at a discount to the spot rate.
c) TOD and TOM rates are less favourable to buyer d) All these
4) What is forward contract?
a) It is a contract for purchase and sale of currency at a future date.
b) The exchange rate for a future contract is quoted on the day of contract.
c) The contract between buyer and seller is called forward contract.
d) All the above
5) Which of the following is true regarding a forward contract?
a) Treasury may have forward contracts with customers or Banks as counterparties.
b) Customers cover currency risk through forward contract.
c) Treasury may cover its customer exposure by taking reverse position in Inter-Bank market.
d) All the above
6) The features of forward rates are:
a) They are not projected on the basis of exchange rate movement in the market
b) Forward rates are decided on the basis of interest rate differential of two currencies.
c) The interest rate differential is added to the spot rate for low interest yielding currency and deducted
from the spot rate for high interest yielding currency
d) All the above
7) Which of the following are True?
a) Forward rate reflects interest rate differential only in prefect markets.
b) Perfect markets are where currency is fully convertible and highly liquid.
c) When currency is not fully convertible the demand for forward contract influences
the forward exchange rate d) All these
8) The features of a swap are:
a) A combination of spot and forward transactions is called a swap.
b) Buying in the spot market and selling same amount in forward market or vice-versa is swap.
c) Swap is mainly used for funding requirements_ d) All these
9) A Bank may have foreign exchange surpluses from the following sources:
a) Profit from overseas Branch operations
b) Forex Borrowing in foreign domestic market
c) Foreign currency and convertible rupee deposits with branches
d) All the above

10) A Treasury may have surplus forex from the following sources:
a) Surpluses net of Bank's -lending in foreign currency
b) Floating funds on account of customer transactions
c) EEFC funds maintained in current account d) All these
11) The surplus forex can be invested by a Treasury in:
a) Inter-Bank loans b) Short term investments c) Nostro Account
d) Any or all of these
12) Which of the followings are the sources for short-term investments?
a) Treasury Bills issued by foreign governments
b) Commercial paper
c) Other debt instruments issued by multi lateral institutions
d) All the above
13) What is a Nostro Account?
a) This is a current account denominated in foreign currency maintained by a Bank with the correspondent Bank in the
home country of the currency.
b) Nostro Account does not attract any interest.
c) Many correspondent Banks provide automatic investment facility for funds held
overnight which earn nominal interest. d) All these
14)What is Money Market?
a) It is place for raising and deploying short term resources where maturity does not exceed one year.
b) Inter-Bank market is divided as call money and term money.
c) Call money market is also overnight market where borrowed funds are repaid on the next working day.
d) Notice money market is where funds are placed beyond overnight and upto 14 days.
15) The participants in call/notice money market are:
a) The major players are Banks and primary dealers.
b) Non-Banking financial companies can only lend the surplus funds upto specified limit_
c) NBFC can not participate in this market d) Both (a) and (c)
16) Which of the followings are the features to Treasury Bills?
a) The T-Bills are issued by the RBI on behalf of central govt. for pre-determined amount.
b) The interest is by way of discount.
c) The price is determined through an auction process d) All these
17) The maturity period of T-Bills is:
a) 91 days b) 364 days c) (a) and (b) both d) None of these
18) Which of the followings is relevant to T-Bills?
a) Each issue of 91 days T-Bill is for Rs_ 500 crore and auction is conducted weekly onWednesday.
b) Each issue of 364 days is for Rs. 1000 crore and it is auctioned fortnightly
c) The Banks park short term funds in T-Bills d) All these
19) The Benefits of T-Bills are:
a) It is Risk free investment
b) It yields interest higher than the call money market.
c) It is possible to trade T-Bill in secondary market d) All these
20) Which of the followings is correct regarding T-Bill?
a) It is in the Electronic form and held in SGL Account maintained by Banks with RBI.
b) Depository participants can also operate through SGL Account.
c) The settlement of T-Bills is through Clearing Corporation of India d) All these
21) If a T-Bill is of 91 days is priced at 99.26, what does it signify?
a) It will yield interest at 2.99%
b) This is known as implicit yield.
c) (a) and (b) both d) None of these
22) The_ features of the commercial paper are:
a) It is an unsecured money market instrument issued in the form of promissory note.
b) The highly rated corporate Borrowers can raise short term funds through this instrument.
c) It is an additional instrument to the investing community d) All these
23) -The time limit for issuing a CP is:
a) Minimum maturity 7 days b) Maximum maturity one year
c) (a) and (b) both d) None of these
24) The requirements for issuing a commercial paper are:

a) The company issuing CP should have minimum credit rating of P2.
b) Banks can invest in CP only if it is issued in D-mat form
c) The minimum amount of CP is Rs. 5 lac d) All these
25) Who issues guidelines for issue of CP?
a) RBI
b) Market practices prescribed by FIMMDA (Fixed Income and Money Market and Derivatives Association of India) c) (a)
and (b) both d) None of these
26) A company issuing CP must satisfy the conditions:
a) Tangible Net worth of the company should not be less than Rs. 4 crore
b) The company should be enjoying working capital limit with Bank/financial institution
c) The Borrowal Account should be classified as standard Asset d) All these
27) How does Tangible Net Worth is arrived at?
a) Capital b) Free Reserves c) (a) + (b) — Intangible Assets if any
d) None of these
28) Which of the following is relevant about commercial paper?
a) It is issued for discounted amount i.e. less than face value
b) The price is quoted for face value
c) It is negotiable instrument d) All these
29) Which of the following statements regarding commercial paper is
not correct?
a) CP is a substitute to working capital
b) Interest rates are at par with PLR
c) It should be compulsory in D-mat form
d) Purchase and sale of CP is effected through the depository participants
30) Banks prefer to invest in CP through Treasury because :
a) Credit Risk is relatively low.
b) Yield on CP is higher than inter-bank money market.
c) There is no liquidity risk d) All these
31) Which of the following- Credit Rating Agencies have been authorized by RBI for
Rating?
a) ICRA b) CRISIL c) CARE and FITCH Ratings India Ltd. d) All these
32) The provisions for issue of commercial paper are:
a) Maximum period for subscription to an issue of CP is two weeks from the date of opening of issue.
b) CPs can be issued on a single date or in parts on different dates.
c) The same issue of CP should have the same date of maturity d) All these
33) The process of issue a CP involves:
a) The Bank is appointed as issuing and paying agent.
b) The Bank would assess the requirement and the extent to which the CP issue is linked with credit limit.
c) The potential investors are given a copy of IPA certificates d) All these
34) The features of certificate of Deposit are:
a) It is a debt instrument issued-by Bank against deposit of funds
b) It is a negotiable instrument
c) It bears interest rate higher than regular deposits of the Bank. d) All these
35) The requirements of certificate of Deposit are:
a) Minimum amount of deposit is Rs. 1 lac
b)_ The maturity period may range from 7 days to one year
c) It is an additional source for investment to Banks and corporates d) All these
36) What is a Reverse Repo?
a) It is a contract to buy securities and then to sell them back at an agreed future date and price.
b) It provides opportunity for short term investments of surplus funds
c) (a) and (b) both d) None of these
37) What is Repo?
a) It is an instrument of borrowing funds for a short period.
b) It involves selling a security and simultaneously agreeing to repurchase it at a future date for a slightly higher price.
c) The price difference is called interest d) All these
38) The significance of Repo is:
a) It is a tool used by RBI for open market operations.

b) It affects liquidity in the system.
c) None of these d) Both (a) and (b)
39) The commercial Banks participate in Repo transactions because of:
a) To meet short fall of CRR --
b) To meet short fall in SLR
e) The interest on Repo is lower than call market d) All these
40) Repo transactions are regulated by:
a) RBI b) Securities Contracts Regulations Act c) (a) and (b) both d) None
41) Which of the following statements is correct?
a) Repo is a short term money market instrument
b) The Repo Rate and period is announced by RBI,c) (a) and (b) both d) None of these
42) What is the Repo Rate with effect from 16th Sept 2010?
a) 5% b) 5.25% C) 5.75% d) 6% e) None of these
43) What is the Reverse Repo Rate with effect from lSept 2010?
a) 4% b) 4.25% c) 4.75% d) 5% e) None of these
44) The process of Repo transaction is:
a) A Bank may sell securities to the counterparty with an agreement to repurchase the same securities after a certain
period at pre determined price.
b) The bank gets cash in exchange of securities and pays back the cash after a certain period and get back the securities.
c) The difference between sale price and repurchase price is interest d) All these
45) The advantage to the counterparty under a Repo transaction is:
a) It earns interest on secured [ending.
b) It holds securities which serves the purpose of meeting SLR requirements.
c) The value of securities is higher by a margin to cover price Risk. d) All these
46) Which of the following statements is correct? .
a) The margin maintained on Repo securities is called hair cut as principal amount exchanged against
securities is lower than the market value of securities
b) RBI uses Repo to control liquidity
c) Banks and primary dealers sell govt. securities to RBI and avail liquidity d) All these
47) Which of the following statements is not correct?
a) RBI uses Repo Transactions under liquidity adjustment facility
b) Liquidity is not affected through lending to Banks under a Repo Transaction.
c) Absorption of liquidity is done by accepting deposits from Banks.
d) Absorption of liquidity by accepting deposits from Banks is known as Reverse Repo.
48) Which of the following statements is correct?
a) RBI has commercial repo auctions on overnight basis.
b) Repo and Reverse Repo Rates have been pre-fixed.
c) RBI has full discretion to change the frequency of auction. d) All these
49) The process of Bill Re-discounting is:
a) Treasury will discount Bill of Exchange of short term nature which are already discounted with the banks.
b) Rediscounting is done at money market rates.
c) The rediscounting rates are negotiable between the lending Bank and borrowing Bank. d) All the above
50) The advantage to the lending Bank is:
a) The surplus funds are invested at term money rate
b) Credit Risk is low as lending Bank has recourse to the discounting Bank
c) (a) and (b) both d) None of these
51) The benefits to borrowing Bank is :
a) It is able to infuse liquidity from out of existing Assets
b) Its capital adequacy ratio is improved or rediscounted bills are added to Inter-Bank liability c) (a) and (b) both
d) All these
52) Which of the followings is significant regarding government securities?
a) They are issued by Public Debt Office of RBI.
b) State govts. Issue state development Bonds.
c) Govt. securities are sold through auction conducted by RBI d) All these
53) Which of the followings is correct?
a) Interest is paid on face value of the bond at coupon rate.
b) RBI arrives at a cut off price based on bids submitted by Banks and primary dealers.


c) The price may be higher or lower than the face value d) All these
54) Price movement of Bond depends on:
a) Demand of the Bond which depends on liquidity in the system.
b) The yield on Bond is different from coupon rate.
c) (a) and (b) both d) None of these
55) If 10 years G. sec. at 7.37 per cent is priced at 104.80, what would be the yield'
a) 6.67% b) 5.42% c) 6.15% d) None of these
56) The interest rates in the economy depends on:
a) Rate of inflation b) GDP growth c) Other economic indicators
d) A combination of all these
57) The variety of Bonds may include: a) Step up coupons b) Coupons linked to inflation c) Floating rate coupons
d) Any of these
58) What is STRIPS:
a) Separately registered interest and principal securities
b) Under this process principal and interest are treated as separate zero coupon securities c) (a) and (b) both
d) None of these
59) What is corporate debt paper?
a) It includes medium and long term bonds and debentures issued by corporates and financial institutions
b) Yield on Bonds is higher than the govt. securities
c) They are called non-SLR securities where banks can invest d) All these
60) Which of the following statements is not correct?
a) Tier-2 capital Bonds issued by Banks fall under the category of corporate debt paper.
b) Bonds issued by corporates are not that liquid_
c) The bonds are issued in D-mat form.
d) Bank Treasury finds an attractive investment in corporate debt paper.
61) Which of the following statements is correct regarding corporate debt paper?
a) Higher the credit risk higher is the yield.
b) Global ratings are necessary if the debt paper is issued in International market.
c) Treasury can invest FCNR deposit funds and other forex surpluses in global debt paper. d) All the above
62) Which of the followings is correct?
a) Debentures are issued by private companies.
b) Bonds mainly issued by public sector companies.
c) Government does not provide guaranter on PSU Bonds d) All these
63) The material difference between debentures and bonds is:
a) Debentures are governed by relevant provisions of company law.
b) Debentures are transferable on registration
c) Bonds are negotiable instrument governed by Law of Contract. d) All these
64) The Bond can be : a) Zero Coupon Bond b) Floating Rate Bond c) Deep Discount Bond
d) Any of these
65) Which of the followings is not correct?
a) Debenture and Bonds can be issued with redemption in instruments over a period.
b) They can be issued with a premium or redemption.
c) There are no Bonds with put and call option
d) Bonds secured by stocks or other collateral are called collaterised obligations
66) Which of the followings is relevant regarding issue of Bonds and debentures?
a) The holders have prior legal claim over the equity and preference stock holders.
b) The Trustee appointed by issuing company protects the rights of debenture holders.
c) The Trustee can initiate legal action against the company in case of any default.
d) All of the above
67) Companies i s suing unsecured debentures and bonds have to compl y wi th the
provision of :
a) Companies Acceptance of Deposit Rules 1975 b) SEBI
c) (a) and (b) both d) None of these
68) What is a convertible Bond?
a) It is a mix of Debt and Equity.
b) Bond holder has an option to convert debt into equity on a fixed date.


c) The conversion price is pre-determined d) All these
69) The advantages of convertible Bonds are:
a) If the stock price is higher than prefixed conversion price, the investor would convert debt into Equity.
b) Company will have no debt repayment
c) The Equity of the company will be strengthened d) All these
70) Which of the followings are derivative products treated on stock exchange?
a) Index features b) Index options c) Stock futures and options d) All these
71) Provisions to invest in Equities are:
a) Banks can invest in Equities upto 20% of their net owned funds
b) Stock prices are highly volatile
c) Banks prefer low risk investments d) All these
72) The provision on Fll investments are:
a) Foreign currency funds are converted into rupee for portfolio investors.
b) Rupee funds with profits are converted into foreign currency for repatriation
c) Flls are allowed to invest in debt market d) All these
73) What is External Commercial Borrowings?
a) Indian companies can borrow on global market through Bank loan or issue of debt paper.
b) The debt can be repaid by reconversion of rupee funds into foreign currency
c) (a) and. (b) both d) None of these
74) The guidelines for investment of foreign currency funds of Banks are?
a) FCNR deposits can be invested in overseas market and for domestic lending :n foreign currency.
b) Banks are permitted to borrow/invest in overseas market 50% of Tier-I Capital.
c) (a) and (b) both d) None of these
75) What is Export Earners Foreign Currency Account?
a) Exporters are allowed to hold 100% export proceeds in a Current Account. wtth
b) No interest is paid on such deposits
c) (a) and (b) both d) None of these
76) What is Gilts?
a) Securities issued by government or Treasuries.
b) They do not have any credit Risk, c) (a) and (b) both d) None of these
77) SGL Account is:
a) Subsidiary General Ledger
b) It is maintained by public debt office of RBI
c) Banks maintain exclusively government Securities Accounts d) All of these
78) Which of the followings is correct?
a) Counterparty is the other party to a Transaction
b) Yield is internal rate of return where interest is also reinvested at original coupon rate.
c) Foreign currency deposits are denominated in foreign currency d) All of these
79) The features of FCNR deposit are:
a) They are denominated either in USD, GBP, JPY or EURO, Can- Dollar and Aus Dollar.
b) The deposits are maintained by non-resident Indians.
c) Interest on FCNR deposits is regulated by RBI d) All of these
80) Broad money or M3 consists of :
a) Currency in circulation b) Demand and time deposits with Banks
c) Deposits of Banks and other deposits with RBI d) All of these
81) Monetary policy of RBI aims at:
a) Controlling rate of inflation b) Ensuring stability of financial market
c) Regulating money supply d) All of these
82) The tools in the hands of RBI for direct control of money supply are:
a) CRR b) SLR c) (a)-and (b) both d) None of these
83) CRR is calculated on net Demand and Time liabilities which contain:
a) Demand deposits and Time deposits
b) Overseas Borrowings
c) Foreign outward remittances and other demand and time liabilities d) All of these
84) The Demand deposits include:
a) Current and Savings Deposits b) Margin Money for Letter of Credits
c) Overdue Fixed Deposits d) All these
85) Other Demand and Time Liabilities include:
ayAccrued Interest b) Credit Balance in Suspense Account
c) Any other liability d) All these
86) In which of the following categories only 3% minimum CRR is required to be
maintained?
a) Net Inter-Bank call borrowing/deposits where maturity does not exceed 14 days,
b) Credit Balance in ACU (Asian Currency Unit) Accounts
c) Demand and Time liabilities in respect of off shore Banking units d) None of these
87) Banks need not maintain CRR on :
a) Paid up capital, reserves, retained profits, refinance from apex institutions.
b) Excess provision for Income tax .
c) Claims received from DICGC/ECGC d) All these
88) Which of the followings is correct?
a) CRR need not be maintained on Inter-Bank term deposits of original maturity upto one year
b) RBI does not pay interest on CRR Balance
c) The Demand and Time l iabil i ties as on the report ing Friday of second previous
fortnight will be basis for CRR calculation d) All these
89) SLR can be maintained in the form of following Assets:
a) Cash Balance in excess of CRR requirements
b) ,Gold at current market price
c) Approved securities valued as per RBI norms d) All these
90) What is Liquidity Adjustment Facility?
a) It is the mechanism whereby RBI lends funds to Banking sector through repo instrument
b) This is used to monitor day to day market liquidity
c) This is exclusively applicable to repo and reverse repo transactions with RBI
d) All these
91) The features of Negotiated Dealing System are:
a) This is a system where securities clearing against assured payment is handed by Clearing Corporation of India.
b) Physical delivery of cheques are not required.
c) All Inter-Bank Money Market deals are done through Negotiated Dealing System
d) All the above
92) The feature of Real Time Gross Settlement System are:
a) All Inter-Bank payments are settled instantly.
b) Banks' Accounts with all the Branch offices of RBI are also integrated.
c) Since it is instant payment system, Banks need to maintain adequate funds
throughout the day.
d) All the above
93) Which of the following is correct?
a) Asian currency unit is a mechanism for payment to/from members of Asian clearing union.
b) Off shore Banking units render special Banking services only to overseas customers.
c) SWIFT is a secure worldwide financial messaging system exclusive to Banks.
d) All the above
94) What is DVP?
a) Delivery vesus Payment system where one account is debited and another account is credit at the same time.
b) In case of securities purchase funding account is debited and securities account is credited.
c) This facilitates prompt settlement of security transactions. d) All these


1 C 2 A 3 D 4 D 5 D 6 D 7 D 8 D 9 D 10 D
11 D 12 D 13 A 14 A 15 A 16 D 17 C 18 D 19 D 20 D
21 C 22 D 23 C 24 D 25 A 26 D 27 C 28 D 29 B 30 D
31 D 32 D 33 D 34 D 35 D 36 C 37 D 38 D 39 D 40 C
41 C 42 D 43 D 44 D 45 D 46 D 47 B 48 D 49 D 50 C
51 C 52 D 53 D 54 A 55 A 56 D 57 D 58 C 59 D 60 B
61 D 62 D 63 D 64 D 65 C 66 D 67 C 68 B 69 D 70 D
71 D 72 D 73 C 74 D 75 C 76 C 77 D 78 D 79 D 80 D
81 D 82 C 83 D 84 D 85 D 86 D 87 D 88 D 89 D 90 D
91 D 92 D 93 D 94 D

General mcqs

1. As per the Simplified KYC guidelines, the current limits for balance in Small
Deposit Accounts should not exceed
2. The term CFT stands for
3. FATCA stands for
4. Holder in due course is defined under section------of Negotiable Instrument
Act.
5. A contract of Insurance is a contract of
6. Rule in Clayton’s case has been incorporated in the
7. Right of set off is exercisable, where the relationship is of
8. Unclaimed deposits are classified by the bank as …….. liabilities
9. A search report from legal counsel is insisted upon for years:
10. As per the Indian Limitation Act, an equitable mortgage becomes time
barred after......years???????


Answers-
1. 50000
2. Combating financing of terrorism
3. Foreign account tax compliance act
4. 9
5. Indemnity
6. Sec 59 to 61 of Indian contract act
7. Debtor & creditor
8. Current
9. 30yr
10. 12 yr from the date of money is due 

Caiib bfm case studies

CASE STUDIES ON DOCUMENTARY CREDITS AND UCP600
CASE STUDY 1
Banks have a practice of calling for the original LC at the time of presentation of documents and
endorse any drawings on its reverse.
LC's may be made available by Acceptance / Defferred Payment / Negotiation and to be freely
available with any bank.
Is it mandatory to endorse the original LC on its reverse?
Analysis
Most LCs contain a clause indicating such a requirement.
The practice is required by SWIFT standards cat.7, for freely negotiable credits, available with any
bank.
Conclusion
What is the problem?
CASE STUDY 2
If a nominated bank does not incur a deffered payment undertaking on presentation of complying
documents and forwards them to the Issuing Bank.
Subsequently can it a purchases a deferred payment undertaking from the issuing bank and seek
protection under UCP600?
Articles 7c. UCP600
CASE STUDY 3
If a LC is confirmed and is available with the Confirming Bank and the beneficiary chooses to
present the document directly to the Issuing Bank and the Issuing Bank wrongfully dishonors.
Should the confirming bank honor the presentation given that the LC has meanwhile expired?
Article 8a. UCP600
CASE STUDY 4
A documentary credit requires all documents must to be issued in English language.
The presentation includes a Certificate of Origin bearing a Stamp / Legalisation done in another
language
Is this a discrepancy?
Issued in?
CASE STUDY 5
As per Article 38 of UCP 600, A LC can be transferred to more than one second beneficiary. This
can be done preferably when the Partial Shipments are allowed under the LC.
If the first Beneficiary is certain that he would be able to comply with article 31(b) of UCP600 (re
partial shipments – submission of multiple BLs on the same voyage), can a LC be transferred to
more than one second beneficiary even if the LC states Partial Shipment is prohibited provided
Article 38.d. UCP600
CASE STUDY 6
If the nominated bank does not accept a bill of exchange drawn on them by the beneficiary, can the
same bill of exchange be presented to the issuing bank or should they present a fresh bill of
exchange drawn on the Issuing Bank
UCP Article 7a (iv)
CASE STUDY 7
Under the documents required a LC calls for a Bill of Lading.
Bill of Lading submitted with the documents is signed by a forwarder as carrier.
Is it a discrepancy?
Article 20 UCP600
CASE STUDY 8
L/C requirement: invoices in 3 fold and Legalized by Chamber of Commerce.
Beneficiary submits invoices with only one legalized and others without being legalized.
Is it a discrepancy?
Article 17e. UCP600
CASE STUDY 9
LC calls for a Beneficiary's certificate stating the expiry date (of the product).
The certificate presented states only the month and the year of expiry.
Is it a discrepancy?
Bankers are expected to have a certain amount of general knowledge and common sense
CASE STUDY 10
The documents required in a transferable LC calls for an Inspection Certificate issued by the First
Beneficiary.
At the request of the First Beneficiary LC is transferred to a Second Beneficiary without calling for
the Inspection Certificate, which the first beneficiary undertakes to submit along with drafts and
invoices to be presented for substitution.
Has the Transferring Bank acted in aprudent manner.
Sub-article 38g of UCP600
CASE STUDY 11
A LC states the last date for shipment as 09 November 2014 and the expiry as 30 November 2014,
is silent on the period of presentation and also states ‘Stale Bills of Lading Acceptable”.
Documents presented on 01 October 2014 with the Bill of Lading dated 01 June 2014 refused by
the Issuing Bank stating Late Presentation (not presented within 21 days after the BL date as per
article 14.c UCP600)..
The negotiating Bank does not agree with the reason for refusal.
Should the Issuing Bank honour?
Rule A19.b ISBP745
Case Study 12
The documentary credit in question issued subject to UCP600 called for shipment from “ANY
NORTH EUROPEAN PORT” and the transport document required in field 46a was: “FULL SET OF
CLEAN ON BOARD BILL OF LADING”.
The Nominated Bank received a bill of lading evidencing shipment from Antwerp, which we found to
be within the scope of North Europe, since the geographical area of North Europe was not defined
in the Credit.
The Issuing Bank refused the documents arguing that Antwerp is not within the geographical area
or range stated in the Credit.
The Issuing Bank further argued that Belgium is in Western Europe and not in Northern Europe and
quoted an internet website (www.mapsofworld.com) where we could easily recheck.
Is the discrepancy cited by the issuing bank valid?
Analysis
UCP 600 sub-article 14 (a) states that a bank must examine a presentation on the basis of the
documents alone.
It is not a matter for the ICC Banking Commission to define or determine geographical areas or
ranges. The requirement in the credit is vague and clearly ambiguous.
In accordance with ISBP 745 Preliminary Considerations paragraph (v), the applicant bears the risk
of any ambiguity in its instructions to issue or amend a credit.
Furthermore, an issuing bank should ensure that any credit or amendment it issues is not
ambiguous or conflicting in its terms and conditions.
It should not be necessary to refer to external resources in order to determine relevant facts.
Conclusion
The applicant and issuing bank must bear the risk of ambiguity for failing to express specifically how
“Any North European Port‟ is to be defined.
In this case, the document is not discrepant.
Case Study 13
Under a credit issued subject to UCP600 by Bank V in country W available by negotiation and
expiring with Bank A in country N, Bank A added its confirmation. Upon presentation of complying
documents Bank A negotiated and discounted. Documents were refused by Bank V for the following
reason: “Health Certificate to be presented in 1 original and 2 copies but only presented in 1 original
plus 1 copy.”
Bank A stated that all required originals and copies were presented to them within the time limits
foreseen by the credit, but admitted to having made an operational mistake by leaving one copy of
the Health Certificate in their file and by only sending 1 original and 1 copy to Bank V.
Bank A requested Bank V to create a second copy on Bank A‟s account, or to instruct Bank A to
courier the missing copy, but Bank V did not provide agreement. In the absence of any instructions,
and after the expiry date of the credit, Bank A couriered the missing copy document to Bank V,
certifying on their letter that it was presented within the time limits of the credit. Bank V still refused
to honour the presentation.
Has the Issuing Bank the right to refuse the documents on the basis of the missing copy of the
Health Certificate, in spite of the fact that the missing copy was sent to them after the expiry date,
but with the declaration of the negotiating bank that the copy was presented within the time limits
foreseen under the LC?
Analysis
The credit was available for negotiation with the Nominated Bank and expired at their counters.
UCP 600 sub-article 6 (d) (ii) states: “The place of the bank with which the credit is available is the
place for presentation. The place for presentation under a credit available with any bank is that of
any bank. A place for presentation other than that of the issuing bank is in addition to the place of
the issuing bank.”
UCP 600 article 6 (e) states: “Except as provided in sub-article 29 (a), a presentation by or on
behalf of the beneficiary must be made on or before the expiry date.”
In accordance with UCP 600 sub-article 7 (c) an Issuing Bank undertakes to reimburse a nominated
Bank that has honoured or negotiated a complying presentation and forwarded the documents to
the Issuing Bank.
The Issuing Bank did not receive all the required documents and subsequently issued a refusal
notice. The Nominated Bank, after an exchange of correspondence with the Issuing Bank,
forwarded the missing copy document to the issuing bank certifying that it had been presented
within the time limits required by the credit.
Conclusion
The initial cited discrepancy is valid. However, upon receipt by the issuing bank of the missing copy
document, and on the basis that it also received a certification from the negotiating bank that the
document was presented within the time limits required by the credit, the issuing bank must
reimburse the confirming bank.
Cade Study 14
Under a credit issued by Bank V in country V available by negotiation and expiring with Bank A in
country N, Bank A added its confirmation. Upon presentation of complying documents Bank A
negotiated and discounted. Documents were refused by Bank V for the following reason: “Health
Certificate to be presented in 1 original and 2 copies but only presented in 1 original plus 1 copy.”
Bank A stated that all required originals and copies were presented to them within the time limits
foreseen by the credit, but admitted to having made an operational mistake by leaving one copy of
the Health Certificate in their file and by only sending 1 original and 1 copy to Bank V.
Bank A requested Bank V to create a second copy on Bank A‟s account, or to instruct Bank A to
courier the missing copy, but bank V did not provide agreement. In the absence of any instructions,
and after the expiry date of the credit, Bank A couriered the missing copy document to Bank V,
certifying on their letter that it was presented within the time limits of the credit. Bank V still refused
to honour the presentation.
Has the Issuing Bank the right to refuse the documents on the basis of the missing copy of the
Health Certificate, in spite of the fact that the missing copy was sent to them after the expiry date,
but with the declaration of the negotiating bank that the copy was presented within the time limits
foreseen under the LC?
Analysis
Although not indicated in the query, it is assumed that the credit was issued subject to UCP 600.
The credit was available for negotiation with the nominated bank and expired at their counters.
UCP 600 sub-article 6 (d) (ii) states: “The place of the bank with which the credit is available is the
place for presentation. The place for presentation under a credit available with any bank is that of
any bank. A place for presentation other than that of the issuing bank is in addition to the place of
the Issuing Bank.”
UCP 600 article 6 (e) states: “Except as provided in sub-article 29 (a), a presentation by or on
behalf of the beneficiary must be made on or before the expiry date.”
In accordance with UCP 600 sub-article 7 (c) an issuing bank undertakes to reimburse a nominated
bank that has honoured or negotiated a complying presentation and forwarded the documents to
the issuing bank.
The issuing bank did not receive all the required documents and subsequently issued a refusal
notice. The nominated bank, after an exchange of correspondence with the issuing bank, forwarded
the missing copy document to the issuing bank certifying that it had been presented within the time
limits required by the credit.
Conclusion
The initial cited discrepancy is valid. However, upon receipt by the issuing bank of the missing copy
document, and on the basis that it also received a certification from the negotiating bank that the
document was presented within the time limits required by the credit, the issuing bank must
reimburse the confirming bank.
Cade Study 15
Bank A (Issuing Bank) in country A issued a standby credit subject to UCP 600 which was advised
to the beneficiary in country B by Bank B (Advising Bank).
The beneficiary presented a demand under the credit which arrived at the counters of the Bank A
before the expiry date of the credit.
Bank A issued a notice of refusal on the third day following presentation stating one discrepancy:
“Original Standby LC Not Presented”.
There was no wording in the credit requiring presentation of the original Standby LC.
1) Is the discrepancy stated by the Bank A correct?
2) Can Bank A raise further discrepancies at a later date in respect of the one presentation made by
the beneficiary under the credit?
Analysis
1) The wording of the credit did not require the presentation of the original credit as part of the
claim. Unless the credit was issued by mail or in paper format, it is doubtful how the originality of the
document could be determined. Accordingly, unless otherwise specifically required within the terms
and conditions of a credit, there is no requirement for the original credit to be included in the
presentation.
2) UCP 600 sub-article 16 (c) states that when a bank decides to refuse or negotiate, it must give a
single notice to that effect to the presenter. UCP 600 clearly does not allow for further discrepancies
to be raised that were apparent at the time of the initial presentation, as is referred to within former
ICC Opinions R196, R328, R271 and TA764rev.
Conclusion
1) The discrepancy is not valid.
2) Additional discrepancies are not to be considered, as banks only have one opportunity to raise
discrepancies for each presentation.
Cade Study 16
Under a documentary credit subject to UCP 600 the beneficiary of the L/C presented, amongst
other documents, a charter party bill of lading (CPBL), made out in accordance with the terms and
conditions of the respective L/C, signed and stamped as shown hereafter:
According to UCP 600 sub-article 22 (a) (i), a CPBL must appear to be signed by any of the
following parties:
· the master,
· the owner,
· the charterer, or
· a named agent for any of the above.
The stamp shows, however, that the master is signing “On behalf of Owners”.
As this is a case not contemplated by UCP 600 sub-article 22 (a) (i) like the signing by a carrier or a
named agent for the carrier as indicated in Official Opinion 470/TA.775rev., we would like to know
the opinion of the ICC Banking Commission to this case, i.e. whether this is an acceptable way of
signing or not: If the answer is that it is not acceptable, whether it would be acceptable, if the name
of the owner(s) would be stated.
Analysis
UCP 600 sub-article 22 (a) (i) states that a CPBL must appear to be signed by:
· the master or a named agent for or on behalf of the master, or
· the owner or a named agent for or on behalf of the owner, or
· the charterer or a named agent for or on behalf of the charterer.
Furthermore, it states: “Any signature by the master, owner, charterer or agent must be identified as
that of the master, owner, charterer or agent.”
ISBP 745 paragraph G4 (b) states: “When the master (captain), owner or charterer signs a charter
party bill of lading, the signature of the master (captain), owner or charterer is to be identified as
“master” (“captain”), “owner” or “charterer”.
ICC Opinion 470/TA.775rev does not apply as it relates to a CPBL issued and signed by a carrier or
its agent.
The signature on the CPBL is identified as that of the master (captain). The master is signing for
and on behalf of the owner.
Conclusion
The document is acceptable.
Cade Study 17
The Documentary Credit issued subject to UCP 600 by an Issuing Bank located in country X on
behalf of an applicant also located in country X and confirmed by a Bank located in country Y
required in field 46a “documents required” amongst other the following document:
Quote Bank guarantee from international first class bank payable in country X equivalent to EUR
xxxxx [the guarantee indicates an amount] valid till xx.xx.xxxx [the guarantee indicates a fix date].
Unquote
The bank guarantee presented to the Confirming Bank is issued by a bank located in country Y and
states that it is subject to the laws of country Y. The wording of the presented guarantee shows the
applicant of the Letter of Credit as beneficiary of the guarantee. The amount and expiry date of the
guarantee are in compliance with the requirements stipulated in the Letter of Credit. The payment
undertaking of the guarantee is worded as follows:
QUOTE
We, xxx [the guarantee indicates the guaranteeing bank], hereby irrevocably undertake to
pay you [the guarantee is addressed and directed to the applicant of the Letter of Credit]
without delay on your first written demand for payment an amount up to xxx [the guarantee
indicates an amount] provided your demand for payment is simultaneously supported by (…)
UNQUOTE
The wording of the guarantee does neither contain an express indication that it is “payable in
country X” nor any express reference to country X being the place of payment.
The Confirming Bank accepted the presented guarantee but the Issuing Bank raised the following
discrepancy: “Bank Guarantee from international bank is not payable in country X.”. Please let us
have your official opinion whether and if so why the issuing bank was entitled to raise the
discrepancy by answering the following questions:
1. Is the guarantee only compliant if it either indicates expressly that it is “payable in country X” or
contains an express reference to country X being the place of payment? Or can it be argued that
the guarantee meets the requirement “payable in country X” because it is issued in favour of a
beneficiary located in country X and as it provides that payment thereunder has to be made to this
beneficiary?
2. Would the requirement “payable in country X” be met if the guarantee is made out as described
above but is not issued by a bank located in country Y but in country X?
3. Does the stipulated requirement “payable in country X” require the document checker to
determine whether the presented guarantee‟s place of payment is country X?
4. Could the confirming bank argue validly that the Letter of Credit does not stipulate that the
requirement “payable in country X” must be met by an express reference or wording in the
guarantee document (e.g. 46a: Bank guarantee from international first class bank indicating that it is
“payable in country X” equivalent to (…)”) and that this requirement may therefore be deemed as
non-documentary and not stated and thus be disregarded according to UCP 600 sub-article 14 (h)
5. Could the confirming bank argue validly that the checking of the document falls with respect to
the requirement “payable in country X” under the auspices of UCP 600 sub-article 14 (f) because
this requirement is worded in way that does not amount to a stipulation of the document‟s data
content ?
Analysis
The credit included, in field 46a of the MT700, a requirement for a guarantee to be issued by an
international first class bank payable in country X (the country of the credit issuing bank). Apart from
amount and expiry date, no other requirements were provided. The credit was confirmed by a bank
in country Y (the country of the credit beneficiary).
The actual guarantee that was presented to the confirming bank was issued by a bank in country Y,
stating that it was subject to the laws of country Y.
The guarantee contained a statement from the guarantee issuing bank that they irrevocably
undertook to pay the guarantee beneficiary (the applicant of the credit) without delay on first written
demand for payment. It did not include an explicit statement or reference that the guarantee was
payable in country X.
Whilst the Confirming Bank accepted the guarantee as a compliant document under the credit, the
Issuing Bank refused on the basis that the guarantee was not payable in country X.
In view of the fact that the beneficiary of the credit was located in country Y, it is not unusual that
they would use a bank in their own country to issue the guarantee, as was the case in this query.
The guarantee had been issued directly in favour of the beneficiary (the credit applicant) in country
X, and not via another bank in country X. It included a condition that payment would be made
against first written demand. It does not state a place for presentation. Because the guarantee did
not state a place for presentation, demands must be presented at the issuing bank. The issuing
bank is located in country Y.
Conclusion
1. The guarantee needed to clearly state that it was payable in country X. In order to achieve this, it
would have needed to be payable at the counters of a bank in country X, and not at the counters of
the guarantee issuing bank in country Y. The fact that the guarantee was issued directly in favour of
the beneficiary (credit applicant) in country X and was payable against first written demand, did not
fulfil this requirement.
2. If the guarantee had been issued by a bank in country X, this would have met the requirements of
the credit.
3. The place of payment of the guarantee was to be stated as “in country X‟ or determinable as
being within country X.
4. The requirement for the guarantee clearly related to a requirement for an actual document.
Consequently, UCP 600 sub-article 14 (h) is not applicable.
5. The condition in the credit “payable in country X‟ is a specific requirement that must be clearly
reflected in the guarantee document if it is to fulfil its function. The discrepancy raised by the issuing
bank is valid.
CASE STUDY 18
The relevant LC conditions:
1) (Under documents required): Full set of clean on-board marine bills of lading consigned to order,
blank endorsed, notify applicant and marked “freight payable as per charter party”
2) (Under other conditions): Charter Party BL acceptable
The presented BL shows:
a) “freight payable as per charter party”
b) signed by XXX Logistics Co Ltd as agent for carrier YYY Shipping Lines Ltd
c) the reverse page shows the shipper’s blank endorsement
d) reverse page also shows typical shipping contract terms & conditions (i.e. not the usual Charter
Party BL terms & conditions)
In short, the BL (front and back), other than the freight statement, does not display anything to
suggest that it is subject to a charter party contract.
Issuing Bank paid but deducted a discrepancy fee for the waived discrepancy of “Charter Party BL
signatory’s capacity not as master, owner, charterer or agent for any of the aforesaid”. Issuing
Bank’s position appears to be that, by virtue of the LC‟s BL freight requirement, the LC is actually
calling for a Charter Party BL. And because the BL does show such freight statement, the BL is to
be treated as being subject to a charter party contract, and therefore the BL must be signed in
accordance with Article 22 (a) (i).
Negotiating Bank of course disagreed and countered that the freight phrase was not enough
evidence that the BL was a Charter Party one. It argued that, save for the freight phrase; its terms &
conditions (on reverse page) were those of a conventional BL. If it is a conventional BL, then issuing
bank’s discrepancy is incorrect. It should be instead: “Conventional BL presented but contains an
indication that it is subject to a charter party”..
ANALYSIS
The credit required a marine bill of lading marked “freight payable as per charter party‟. In this
respect, the credit was badly worded. The presented bill of lading was marked “freight payable as
per charter party”.
ISBP 745 paragraph G2 (b) states: “A transport document, however named, indicating expressions
such as “freight payable as per charter party dated (with or without mentioning a date)”, or “freight
payable as per charter party”, will be an indication that it is subject to a charter party.
ISBP 745 paragraph G1 states: “When there is a requirement in a credit for the presentation of a
charter party bill of lading, or when a credit allows presentation of a charter party bill of lading and a
charter party bill of lading is presented, UCP 600 article 22 is to be applied in the examination of
that document.
Where a credit simply allows for or requires the presentation of a CPBL, a CPBL issued and signed
by a carrier or its agent is discrepant under UCP 600 sub-article 22 (a) (i).
CONCLUSION
The discrepancy raised by the issuing bank, “Charter Party BL signatory‟s capacity not as master,
owner, charterer or agent for any of the aforesaid”, is correct.
CASE STUDY 19
L/C available with Advising Bank by payment, however the Advising Bank did not act under our
nomination and has sent documents presented by the beneficiary to the Issuing Bank without
examining them (in accordance with beneficiary's request). No message was received from the
issuing bank, Advising Bank received a MT910 from their correspondent bank informing us of the
credit entry on our account and containing information in field 72: /EUR100 deducted as discr.fee/.
The documentary credit included the following clause: 'discrepancy fee of EUR 100.00 will be
deducted from the proceeds any drawing if documents are presented with discrepancies'
We have contacted issuing bank arguing that since they had not acted in accordance with UCP 600
sub-article 16 (c) (ii), quoting every single discrepancy they should be precluded from deducting
discrepancy fee.
An answer was received that their action has nothing to do with UCP 600 article 16 and that if we
want to find out about discrepancies we will have to ask for it. It seems that they are acting in line
with the conclusion of a/m Opinion. Nevertheless, we cannot agree with it.
In the opinion of the Issuing Bank and according to UCP600 sub-article 16 (a) an issuing bank
determines if a presentation does not comply. By deducting their discrepancy fee they obviously
wanted to indicate that the presented documents did not comply.
As per article UCP 600 sub-article 16 (b) issuing bank may in its sole judgment approach the
applicant for waiver, but that does not extend period of time mentioned in UCP 600 sub-article 14
(b), nor does it (in our opinion) annul the provisions of UCP 600 sub-articles 16 (c), (d), (e) and (f).
Achieving applicant's acceptance of discrepancies does not justify the action of not listing all
discrepancies, even when sending message indicating acceptance (such as in MT752).
Advising Bank is of the opinion that if Issuing Bank determines that presented documents contain
discrepancies, all discrepancies should be quoted either in separate MT734 or in MT752 within 5
working days. Otherwise they are precluded claiming that documents are discrepant (and
accordingly not allowed to deduct discrepancy fee)
ANALYSIS
A presentation of documents had been paid by the issuing bank deducting their discrepancy fee.
Prior to payment no notice of refusal has been sent nor had any information on discrepancies been
provided by the issuing bank.
When an issuing bank finds discrepancies in documents, it has two options available to it under
article 16: to provide a refusal message to the presenter in terms of sub-articles 16 (c) and (d) or, to
approach the applicant for a waiver without first providing a notice of refusal (sub-article 16 (b)).
When the option of approaching the applicant for a waiver is chosen, and such waiver is given and
accepted by the issuing bank, the practice is for the issuing bank to honour, and such honour will be
less any discrepancy fee that was stated in the credit.
When this course of action is taken, the issuing bank should provide the presenter, as part of their
payment message or in a separate communication, details of the discrepancies that were observed.
The presenter can then choose to dispute the discrepancies, therefore questioning the relevance of
the deduction representing the discrepancy fee. If the issuing bank does not provide such an
indication, the presenter may seek, and the issuing bank must provide, such details. The actions of
the issuing bank, as described in situation D, do not represent preclusion under sub-article 16 (f).
Conclusion:
The Issuing Bank is entitled to a discrepancy fee as outlined in the credit, but it should inform the
presenter of the discrepancies that were found, either in the advice of payment or in a separate
communication.
The issuing bank is not required to send a notice of refusal to the presenter if it elects to contact the
applicant for a waiver and to receive a waiver that is acceptable to it. Sub-article 16 (f) does not
apply in these circumstances.
If the covering schedule listed the discrepancies that the presenter had found, the Issuing Bank
should either advise the presenter that the documents were taken up despite the discrepancies that
had been identified by the presenter, or list the discrepancies for which the issuing bank had sought
waiver from the applicant.
It is only when an issuing bank does not indicate the discrepancies that there should be a need for
the presenter to seek such details. The default position is that an issuing bank, in order to justify a
discrepancy fee, should always indicate the discrepancies by one of the methods described above.
When an issuing bank has approached the applicant for a waiver, and received such waiver and
decided to act upon it, it does not need to send a notice of refusal in accordance with UCP 600 subarticle
16 (c) in order to be entitled to deduct a discrepancy fee when it honours a presentation. In
such circumstances, UCP 600 sub-article 16 (f) does not apply.
When a bank deducts a discrepancy fee on the basis of a “discrepancy fee clause‟ in a credit, it is
good banking practice to inform the presenter of any discrepancies that were found in the
documents, either in the advice of payment or in a separate communication. In the event they fail to
do so, this does not preclude them from providing such information subsequently.

Recollected questions Jaiib legal on 24.11.2019

Recollected questions Jaiib legal on 24.11.2019
1. District forum headed by....
2. DRT is headed by.....
3. RBI pays interest on CRR.....
4. Limitation for suit case ..
5. Defferd payment guarantee ...
6. Banks can invest in other co shares up what percentage.
7. Mininmun number of directors in public and private co...
8. Back to back LC....
9. Indemnity comes in which act....
10. Case study for cheque payment
11. Choose correct answer among option where bank gets protection ...
12. Documents of title goods ...
13. After Lok adalat where one can file suit ... None
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18. Equitable mortgage
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20. Case study to determine which type of charge is created.
21. Relationship with bank and costmer in case of safe deposit locker.
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25. FEMA is regulated by...