Kyc aml mcqs

AML-KYC
1. In the process of customer identification, the customer identification data should be updated __________ in 5 years in case of low risk category, and __________ in case of medium and high risk category customers.
1. Twice; 1 year
2. Once; 1 years
3. Twice; 2 years
4. Once; 2 years*
2. ____________ is the process of keeping the amount lower than that fixed for reporting and building similar transactions till the amount planned to be laundered is reached fully.
1. Entrailing
2. Lading
3. Slushing
4. Smurfing*
3.What information about the correspondent bank must be available
1. Major business activities
2. The bank's management
3. Level of AML/KYC compliance
4. All of the above*
4. Which of the following acts defines the offence of Money Laundering as under – “Engaging directly or indirectly in a transaction that involves property, that is proceeds of crime (or) derived from proceeds of crime (or) knowingly receiving, possessing, concealing, disguising, transpiring, converting, disposing off within the territories of India, removing form or bringing into the territory of India the property that is proceeds of crime”
1. Anti-Money Laundering Act, 2005
2. Active Money Laundering Act (AMLA), 2003
3. Prevention of Money Laundering Act (PMLA), 2002*
4. Impediment of Money Laundering Act (PMLA), 2002
5. Which of the following is a high risk activity?
1. A customer purchasing a car from a local garage
2. Printing a statement for a customer
3. A loan for home improvement
4. Money transfer to unknown third parties*
6. Please read the KYC practice given below. Identify the KYC element which best relates to the stated practice. Well-developed and applied customer assessments enable identification and classification of potentially high-risk customers. This is known as _____________.
1. customer acceptance*
2. customer identification
3. accounts and transaction monitoring
4. risk management
7. Which of the crime is not included under PMLA, 2002 for proceeds of crime
1. Drug trafficking
2. Kidnapping
3. Murder
4. None of the above*
8. Who file a report onward to the FIU-IND, if the Bank concludes that a transaction is suspicious
1. PO*
2. senior management
3. Internal Audit and Control team
4. None of the above
9. Laundering might attempt a series of small currency transaction over time because _____________.
1. a provision of the bank secrecy act requires the filing of CTR for a transaction exceeding Rs. 10 Lakhs*
2. Larger amount are too risky to carry around
3. that's the way in which launderers take in the funds
4. None of the above
10. The three stages of money laundering are ____________.
1. Layering, Placement, Refining
2. Placement, Refining, Integration
3. Refining. Integration, Layering
4. Integration, Layering, Placement*
11. What should awareness and training of staff on AML/KYC, should cover
1. need to know the true identity of the customer
2. need to know enough about the nature of business activities expected
3. to know what might constitute suspicious activity
4. All of the above*
12. Money laundering involves three independent steps that often occurs simultaneously. Which of the following best explains the layering in the process of money laundering?
1. Physically placing bulk cash proceeds
2. Separating the proceeds of criminal activity from their origin, through complex level of financial transactions*
3. Providing a legitimate explanation for the illicit proceeds
4. None of the above
13. What is not audited by Internal Audit and Control teams of the banks
1. adequacy of policies
2. adequacy of procedures
3. system support to detect suspicious and potential money laundering transaction
4. None of the above*
14. What should you consider when managing AML/CTF in your business?
1. Knowing your customer
2. Destination of funds
3. Methods of delivery such as cash, telephone and internet banking
4. All of the above*
15. When is induction training provided to employees
1. start of their employment*
2. end of their employment
3. Depends upon trainer availability
4. Depends upon training schedule
16. What services are offered by correspondent banks
1. International wire transfers
2. Cheque clearing
3. Cash/fund transfers
4. All of the above*
17. ____________ is a bank which is incorporated in a country where is no physical presence and is not affiliated to any regulated financial group.
1. Correspondent Bank
2. Shell Bank*
3. Respondent Bank
4. Compendium Bank
18. Which element of an effective transaction monitoring process, involves scrutiny of the transactions carried out by the customer over a longer period of time
1. Analysis of transactions*
2. Identification of Exceptional transactions
3. Enhanced Due Diligence
4. None of the above
19. Which of the following should be treated as a ‘customer’ for prudent KYC analysis?
1. any person or company which can conduct a transaction in relation to an account offered by a ban
2. any person who is a signatory to an account offered by a building society
3. any person or company which holds an account issued by a credit union
4. All of the above*
20. Customer verification is vital to any KYC procedure. What is acceptable in verifying an individual customer? Select the incorrect response from the alternatives below. In verifying an individual customer, you can rely on ____________.
1. a certified copy of a birth certificate in conjunction with the customer's drivers licence and Medicare card
2. sighting original identification such as birth certificate and drivers licence
3. a reference from a good friend*
4. None of the above
21. ________________ services are used to buy or sell foreign currencies, to consolidate small denomination bank notes into larger ones, or to exchange financial instruments. Criminals are attracted to this method of laundering as they are not as heavily regulated as traditional financial institutions.
1. Remittance
2. Bureaux De Change*
3. Back-to-Back Loans
4. Collection Accounts
22. ________________ are fake companies that appear on paper, but may not physically exist.
1. Shell Companies*
2. Front Companies
3. Offshore Banking
4. Hawala Systems
23. During customer acceptance and identification activities, on which of the following customers should enhanced due diligence be conducted?
1. trustees, nominees, and fiduciaries
2. non-face-to-face customers
3. correspondent accounts
4. All of the above*
24. Which one of the following is a Valid document available to the bank for customer identification?
1. Election ID card*
2. Ration Card
3. Bank statement of account
4. Photograph
25. Which of the following terms is used to describe the process of sending money through multiple financial institutions to make it difficult to track?
1. Integration
2. Camouflage
3. Placement
4. Layering*
26. What should be recorded regarding records of employee training on AML/KYC
1. date of training
2. nature of the training received
3. attendance
4. All of the above*
27. Money derived from criminal activity is known as _______________.
1. Proceeds Possession
2. Proceeds of Crime*
3. Dirty Money
4. Crime Laundering
28. Money laundering is the result of crime and the persons behind the crimes appear to be using banking channels for the purpose of _______________. (I) fund transmission (II) creating a legal front of money raised through illegal and humanity demeaning methods.
1. Only (I) above
2. Only (II) above
3. Both (I) and (II) above*
4. None of the above
29. What should employees be aware about the handling of transactions which may involve money laundering
1. potential effect on the bank
2. potential effect on bank's employees
3. potential effect on bank's customers
4. All of the above*
30. Which of the following are required documents to establish both the identity and the correct address while opening accounts of companies? (I) Certificate of incorporation and Memorandum of Articles of Association (II) Resolution of Board of Directors to open an account, and identification of those who have the authority to operate the account (III) Power of Attorney granted to a partner or an employee of the firm to transact business on its behalf (IV) Copy of PAN allotment letter (V) Copy of telephone bill
1. (I), (II), (III) and (IV) above
2. (I), (II), (IV) and (V) above
3. (II), (III), (IV) and (V) above
4. (I), (II), (III), (IV) and (V) above*
31. _______________ is the provision of banking services by one bank to another bank.
1. Respondent Banking
2. Crude Banking
3. Correspondent Banking*
4. None of the above
32. While monitoring of customer transaction it should be ensured that there is no _________ i.e., manipulation of the size of transaction so that if seen individually they fall below the threshold that needs to be reported to the monitoring authority.
1. Entrailing
2. Structuring*
3. Lading
4. Slushing
33. AML/KYC guidelines are issued under ____________.
1. BR Act,1949
2. PMLA,2002
3. RBI Act
4. Both A and B above*
34. _____________ is a matrix of different components (such as source of funds, level of income, volume and frequency of transaction etc) that helps arrive at a benchmark transaction for individual customer transactions, against which a comparison can be made.
1. KYC Profile
2. Customer Risk Profile
3. Transaction Profile*
4. Interim Profile
35. Please read the KYC practice given below. Identify the KYC element which best relates to the stated practice. High-risk customer activity is regularly reviewed and substantial high-risk customers are personally known to management. This is known as _____________.
1. customer acceptance
2. customer identification
3. accounts and transaction monitoring*
4. risk management
36. Money Laundering refers to ____________.
1. Conversion of cash in to gold
2. Conversation of assets into cash
3. Conversion of assets into cash
4. Conversion of money which is illegally obtained*
37. How does KYC checks be communicated to customers of bank
1. Incorporating the requirements in the account opening forms
2. Publishing relevant information on the websites of the bank
3. Providing a ready reckoner on frequently asked questions related to KYC
4. All of the above*
38. As a manager/Compliance officer, it is a part of your job to ____________.
1. Maintain your companies AML Program
2. Ensure that proper reports are filed and records are maintained
3. Ensure that all employees report suspicious activities
4. All of the above*
39. What factors and characteristics come into play for the process of customer profiling
1. buying patterns
2. creditworthiness
3. purchase history
4. All of the above*
40. CTR stands for ____________.
1. Custom Trafficking Report
2. Current Transaction Receipt
3. Currency Transaction Report*
4. Criminal Trading Raid
41. ______________ are engaged in selling goods and providing services, with large volume of business and often engaged in cash dealings.
1. Shell Companies
2. Front Companies*
3. Offshore Banking
4. Hawala Systems
42. Which of the following document/s can be accepted by banks as a proof of Customer Identification?
1. Electricity Bill
2. Salary Slip
3. Income/Wealth Tax Assessment Order
4. Election I card*
43. What should relevant employees be aware of
1. Policies and procedures put in place to prevent money laundering
2. Procedures put in place to prevent money laundering
3. KYC/AML guidelines issued by the RBI
4. All of the above*
44. What objective parameters can be used for enhanced due diligence
1. Customer location
2. Financial status
3. Nature of business
4. All of the above*
45. PAN (Permanent Account Number) is compulsory for Fixed Deposits, Remittances like DDs/TTS/RTCs etc _________.
1. if the amount exceeds Rs.10,000
2. if the amount exceeds Rs.25,000
3. if the amount exceeds Rs.50,000*
4. no such limit is fixed by the Income Tax Authorities
46. What are not the responsibility of the senior management
1. Appointment of PO
2. Managing the risk of money laundering
3. Internal Reporting Procedures
4. None of the above*
47. Which of the following is an example of smurfing?
1. Wiring money to a foreign country
2. A broker buying dollars with rupees
3. A drug dealer asking a stranger to buy money order with drug money*
4. All of the above
48. A lawyer who banks with you is a sole practitioner. He wants to open a trust account for a client. He provides you with the trust documents and the name and address of the trust beneficiary but is unable to provide additional details due to a client confidentiality obligation. You notice that the address is from an overseas jurisdiction. What level of due diligence would be required?
1. This situation does not require enhanced due diligence. You know the lawyer well and you have been provided with the trust documents and identity of the beneficiary.
2. This situation requires enhanced due diligence because an offshore jurisdiction is involved*
3. This situation requires enhanced due diligence because the lawyer is clearly hiding something when he says he is under a client confidentiality obligation
4. None of the above
49. Please read the KYC practice given below. Identify the KYC element which best relates to the stated practice. Effective information-gathering strategies enable building of a solid information base about each customer. This is known as ______________.
1. customer acceptance
2. customer identification*
3. accounts and transaction monitoring
4. risk management
50. What suspicion does frequent cash deposits in the account followed by ATM withdrawals at different locations with no valid explanation, can lead to
1. Doubtful source of cash deposited in bank account
2. Doubtful use of safe deposit locker
3. Suspicious use of ATM card*
4. None of the above
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CCP recollected October 2109

Questions were mainly from conceptual undestandings Export Credit (LC), Tandon Committee, IRAC norms, Priority Sector Lending Certificates, Restructuring, Financial Ratios

CP
WC(1nd and 2nd method)
Break even case study
ICR
Ratios interpretation
WCG
Syndication
Consortium

Minors
Public ltd company
Charge creation

Mortgage

Very 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

IT security recollected

Some of the recalled questions/topics are as following...

2-3 questions on Escrow
Security governance
Cert in
Major change from it act to it amendment act
BC DRP steps
2 questions on firewall
RTO
RPO
CISO reports to whom
Who are responsible for IT security
Maker checker difference
Spyware
VoIP
Black/white box testing
Salami attack
ISMS
PDC and DRC
2 questions on fault tolerant systems
Disadvantage of check list audit
2-4 questions on physical security
ITAM 2 questions
What cant be disclosed under RTI act 2005
Schema
Modem
Green server
Telnet uses which port
2-3 questions on security standards
E wastes
2-3 questions related to software development
COBIT
Threat vector
DoS
SQL
Cross site scripting
Steganography
Cryptography
Beta testing
Multiplexers
CAPTCHA
Dual core processor

Retail banking recollected questions on 22.12.2019

Retail banking recollected questions on 22.12.2019


Today retail banking exam memories based question.
Carpet area
Bharat bill payment.
Present value.
EMI
Products
SMA
SEGMENT AREA.
GEOGRAPHICAL AREA.
PREPAID CARD LIMIT. AND CASH LIMIT.
RTGS AND NEFT DIFFERENT.
Hosuing loan case study.
Car loan case study.
Propagate full form.
Mobile banking questions.
Mutual fund business. By bank.
Debit card complain.
Hacking net banking or debit card what type of risk.

Recollected questions international banking on 22.12.2019

International banking recollected question

Recollected questions international banking on 22.12.2019

1. mire than 15 questions in exchange rate calculation
2. Role of WTO
3. who is implementing Fema
4.wat are short term ecgc policy
5. wats s specific policy
6. baloon repayment
case study problm on l.c and cancellation and firward contract boking calculation
case study on int rate swap problm
FRA
Hiw int rate s fixed in loan against FCNR b. wether it can b given against funds in Nre

wether bank can int rat indepndently or as per RBi guidelined or certain rste over MCLR
amount repartiable from Nro to Nre
wether full amount can b repartiated in NRE acc
what s not role of exim bank chice are buyers credit, supplier credt, syndication loan
wat is time for scrutinixing documents choices r 5 working days 5 calender days 5 banking days

if due date falls on friday which s a holiday due to bharsth bandh wen it will fall due wether on sunday or saturday etc..
Deep question on advising bank wether once it is advised another advice s possibl.or not

study throughly role of front office back office mid office 3 case study wuestions

leading and laggingp

case study on Adr in role of banks invp

to chose the from choice which is capital account trabsavtion

Nri are not alowed to invest in Transferabl trading rights

Caiib retail recollected June 2018

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 retail

CAIIB RETAIL

01 Retail banking refers to banking in which banking institutions execute transactions directly with
consumers, rather than corporations or other entities
a) Consumers b) corporates c)Business entities d)None of these
02Which of the following is incorrect?
a) Retail Banking is a banking service that is geared primarily toward individual consumers.
b) Retail banking focuses strictly on consumermarkets c)Retail banking is, generally mass-market driven
d)None of these
03 he delivery model of retail banking is both physical and virtual
a) Only physical b) Only virtual c)Both physical and virtual d) None of these
04Which 'of the following is not the advantage of retail banking?
a) Client base will be large and therefore risk is spread over large customer base.
b) Customer Loyalty is strong and customers generally do not change fromone bank to another.
c) There are attractive interest spreads, since customers are too fragmented to bargain effectively.
d) None of these
05 Which of the following is the advantage of retail banking?
a) Credit risk tends to be well diversified, as loan amounts are relatively small
b) There is less volatility in demand compared to large corporates
c) Large numbers of clients can facilitate marketing, mass selling.
d) All of these
06 The study conducted by Capgemini, ING and the European Financial Management Marketing
Association related to which of the following?
a) Pricing of Banking services b)Delivery Channels c) Both (a) and (b) d)None of these
07 Which of the following is not correct about findings of the study conducted by Capgemini, ING and the
European Financial` Management Marketing Association on pricing of banking services?
a) In a given region, prices varied according to usage pattern, with a ratio of up to one to 4.6 between prices paid by
very active and less active users.
b) Banks are increasing remote channel prices in order to drive greater customer use.
c) Price of seldom-used products have steadily increased.
d) For Banking services prices decline with maturity
08Which of the following is not correct about findings of the study conducted by Capgemini, ING and the European
FinancialManagement Marketing Association on Delivery Channel Strategies?
a) Sales through branch format have decreased.
b) Sales through web and phone have increased.
c) Earlier branch used to be the main point of sale but now sales are mainly through internet banking.
d) Selling through the branch channel is still the main format.
09 In US, which of the following is not the characteristic of the traditional Image of the bank?
a) office onMain Street. b) the branch manager does not understand the local market.
c)the manger has strong customer relationships. d) None of these
10What has been the impact of technology and regulatory changes in the 1990s in banking in US?
a) Automated tellermachines(ATMs) proliferated after the national ATMnetworks dropped a ban on surcharges.
b) Banks also developed centralized call centers to handle customer service issues and to initiate transactions,
including deposits and loans.
c) Many banks shifted some activities like small-business loan approval from branch to regional or Head
Offices.
d) The role of the traditional bank branch reduced in the delivery of retail banking services.
e) All of these
11What has been the impact of Deregulation and the Riegle-Neal Act of 1994 & GrammLeach-Bliley Act 1999
regarding banking in US?
a) It contributed to bank consolidation that focused on reducing costs to boost profits
b) It allowed banks to branch and merge across state lines.
c) The declining number of banks and rising number of branches have resulted in greater consolidation of branches
and deposit's in the nation's larger banks.
d) All of these
12 For the banks, the consolidation of brancheswithin large branch networks has implications in terms of :
a) Cost b) business focus c) profitability d) All of these
13Market surveys suggest that customers:
a) place a premiumon convenience i.e. location when choosing a bank. B) are indifferent to location of branch
c) place premium on branches in commercial areas d) None of these
14 The evolution of retail banking in India can be traced back to the entry of:
a) Newprivate sector banks. b)Foreign banks c) Non Banking Finance companies d) All of these
15Which of the following were the pioneers in introducing retail banking products in India?
a) Axis Bank b)ICICI Bank c) HDFC Bank d) Standard Chartered Bank and Grindlays Bank
16 Which of the following were two early players in the credit card business among public sector banks?
a) State Bank of India and PNB b)Bank of Baroda and PNB
c)Bank of Baroda and Andhra Bank d) Andhra Bank and Corporation Bank
17 Which of the following created a new approach to retail banking by banks?
a) Foreign banks b) Non Banking Finance Company
c) Entry of newgeneration private sector banks d)Old private sector banks
18 New private sector banks had a clear positioning for retail banking due to which of the following reasons?
a) Professional and experiencedtop management. b) The advantage of technology right fromstart.
b) They were not equipped for large scale lending. d)None of these
19. In India, now which group of banks have emphasis on retail banking?
a) Foreign banks b) New private sector banks c) Public sector banks d) All of these
20.Which of the following is not the reason for emergence of retail banking in India?
a) Strong economic fundamentals. b) growing rural population
c) higher disposable incomes d) None of these
21. Which of the following is not the reason for emergence of retail banking in India ?
a) emergence of new customer segments b) rise in old population
c) huge untapped potential for retail banking in India d) explosion of service economy
22. The contribution of retail assets to Gross Domestic Product (GDP) of India is and is comparatively lesser than that of
other Asian counterparts likeChina (15%),Malaysia (33%), Thailand (24%) and Taiwan (52%).
a) 3%, b)6%, c)10%, d)12%
23. The retail asset growth slided down to 4%in 2009. The segments which suffered most were:
a) Consumer Durable Loans, b) Auto Loans, c) Housing Loans, d) Both (a) and (b) only, e)None of these
24. During • slowdown of 2008-09, themost affected segment in the retail liabilities space was
a) Term Deposits, b) InstitutionalDeposits c) PurchasedDeposits d) CASA deposits.
25. In case of Indian Banks, the share of interest income has almost remained steady at about%and the share of non
interest income also is almost stable at around %.
a)84%;16% b) 75%;25% c) 65%;35% d) 15%;85%
26. As per a study by Boston Consulting Group, Retail segment brings in nearly % of the
total banking revenues worldwide
a) 30%, b) 40%, c) 50%, d) 60%
27. Which of the following is not the finding fom report by McKinsey & Company on ‘Emerging Challenges to
the Indian Financial System’?
a) With rising income levels, India will not remain attractive market for retail financial products.
b) With rising income levels, India will not remain attractive market for retail financial products
c) There is huge potential available for personal financial services.
d) In addition to consumer credit, payment products such as credit and debit cards will drive growth.
28. As per report by Mc Kinsey & Company on ‘Emerging Challenges to the Indian Financial System’, by
2010, the number of high net worth individuals (annual income greater than US $1 million) in India will grow
to _____
a) 100,000 b) 200,000 c) 300,000 d) 400,000 e) None of These
29. Which of the following statements is not correct in the context of Indian Banking?
a) There has been growth in deposits and credits almost consistently
b) Banking access remains limited to a few sections of the population.
c) There is no disparity in the penetration of banking products among the different classes
d) None of these
30 As per a study by Boston Consulting Group, which of the following is correct?
a) Retail banks are facing tougher competition and continuously decliningmargins.
b) Retail banks are facing tougher competition but continuously increasingmargins
c) Retail banks are facing less competition but continuously declining margins
d) None of these
31 The retail banking objectives of any bank wouldmainly focus on which of the following?
a) Generating superior returns on assets
b) Acquiring sufficient funding
c) Enhancing riskmanagement
d) Understanding customers and regaining their trust , e) All of these
32 The business models for retail banking adopted by banks among the public sector, private sector and
foreign banks:
a) are same, b) vary, c) are almost same, d) are almost same but vary to very little extent.
33. Which of the following approaches are adopted by banks for Retail banking?
a) Strategic Business Unit (SBU) b) Approach Departmental Approach, c) Integrated Approach (part of
the overall business plan), d) Any of these
34. Public Sector Banks in India generally have adopted the Approach as their retail banking business model.
a) Strategic Business Unit (SBU), b) Approach Departmental Approach, c) Integrated Approach (part of the
overall business plan), d) None of these
35.Which approach is adopted by old generation private sector banks for retail banking?
a) Strategic Business Unit (SBU) Approach b) Departmental Approach, c) As a part of overall business plan d)
None of these
36.Which of the following type of banks use Strategic Business Unit Model for Retail Banking with defined
business focus?
a) New Private Banks, b) Foreign Banks, c) All big public sector banks, d) Both (a) and (b)
e) All of these
37. Banks generally structure their retail banking models mainly on a positioning platform and
to be the best/ top among the peer group players or across players.
a) Two, b) three, c) five, d) ten
38. In retail banking, the new generation private banks want to be in the top slot across all
class of banks. These banks have advantage of which of the following?
a) Technology, b) strategy, c) customer and business initiatives, d) aggressive positioning
e) All of these
39.Which of the following banks exited retail and credit card business when it was found that these were not viable?
a) BNP Paribas, b) American Express, c) Bank of Tokyo, d) Both (a) and (b), e) All of These
40 Banks adopt different models for implementing their retail banking initiatives.Which of the following
are themost common strategies?
a) end to end outsourcing b) predominant outsourcing c) partial outsourcing
d) in house sourcing e) Any of these
41 Businessmodel adopted by a particular bank for Retail Banking does not depend on which of the following?
a) product range b) process requirements c) technology preparedness d) delivery capabilities
e) None of these
42 Public sector banks use which of the following models for retail banking?
a) end to end outsourcing b) predominant outsourcing c) partial outsourcing d)in house sourcing
43 Most of the Public sector banks, use only in house resources for retail banking. However, some of the activities
are outsourced.Which of the following type of activities is not outsourced?
a) ATM b) Credit Card c) KYC compliance d) None of these e) All of these
44 In case of new generation private sector banks, which implementation model for retail banking is
adopted?
a) end to end outsourcing b) in house sourcing c) predominant in house sourcing
d)mix of outsourcing and in house, though a little tilted towards outsourcing
45 There are four broadly defined processmodels relating to Retail Banking which are implemented across banks.
Thesemodels are defined based on which of the following?
a) Technology b) Customer interface capabilities of the banks c) Both (a) and (b) d)None of these
46 Which of the following models is not used by banks for retail banking? a) Horizontally Organised
Model, b) Vertically Organised Model c) Diagonally Organised Model d) None of these
47. Which of the following is/are features of Horizontally organised model in retail banking?
a) It is a modular structure using different process models for different products.
b) It offers end to end solutions product wise.
c) It provides functionality across products with customer data base orientation.
d) Centralised customer data base is used across products.
e) Both (a) and (b)
48.Which of the following is/are features of Vertically organisedmodel in retail banking?
a) It provides functionality across products with customer data base orientation.
b) Centralised customer data base is used across products.
c) It is a modular structure using different process models for different products.
d) It offers end to end solutions product wise.
e) Both (a) and (b)
49.Which of the following statements is correct regarding implementationmodels adopted by banks in retail banking?
a) Horizontally organised model is a modular structure using different process models for different products
offering end to end solutions product wise.
b) Vertically organisedmodel provides functionality across products with customer data base orientation and centralised
customer data base is used across products.
c) Predominantly horizontally organisedmodel ismostly product oriented with common customer information for some
products.

d) In predominantly vertically organisedmodel, common information is available formost of the products.
e) None of these
50.Which of the following is incorrect regarding Predominantly horizontally organisedmodel for retail banking?
a) ismostly product oriented with b) It ismostly product oriented.
c) In thismodel common customer information is available for some products.
d) In this model, common information is available for most of the products. e) None of these
51. Which of the following model is generally adopted by public sector banks for retail banking?
a) Vertically organisedmodel, b) Predominantly horizontally organizedmodel, c) Horizontally organizedmodel, d)
Predominantly vertically organizedmodel.
52 Which of the following model is generally adopted by new private sector banks for retail banking?
a) Vertically organised model b) Predominantly horizontally organisedmodel
c)Horizontally organised model d) Predominantly vertically organisedmodel
53 in foreign banks, mostly predominantly vertically organised model is adopted for retail banking which
implies that retail banking initiatives are attempted with:
a) scattered data base b)using different processmodels for different products.
c) customer information with different set of officials. d)common customer information across products.
54 Certain segments constitute the basic structure of retail banking. Which of the following, has emerged as
one of the important constituents of retail banking initiatives of banks?
a) retail asset products b) retail liability products c) marketing of third party products. d) All of these
55 Liability products offered by banks to retail banking customers are which of the following?
a))Saving Accounts, Current Accounts and Term Deposit accounts. b) Saving Accounts, Current Accounts,
Term c)Deposit accounts and Housing Loans. d)Housing Loans, Vehicle Loans and Personal Loans. e) Safe
Deposit Vault, Safe custody
56 Product differentiation amongliability products is achieved by banks by:
a) Attractive packaging b) Attractive branch layout c)Expanding the scope of generic products from a plain
vanilla account to a value enriched account d) None of these
57 In today's context, which of the following can be called as value enrichment to an account?
a) ATM cards b) Debit Cards c) Multi City Cheques d) None of these as all of these have become generic
features
58 Which of the following is considered as enriching the value to a liability product?
a) tagging group insurance products in the life and non life segment at a very competitive premium
b) providing sweep facilities from savings or current accounts to fixed deposit accounts above a certain specified
level resulting in increase in the earning potential of the deposit balances
c) auto overdraft facility d) All of these e)None of these
59 In case of liability products, Internet Banking, Telephone Banking, andMobile Banking are considered as:
a) enriching value to a liability product. b) essential value additions. c) generic feature.
d) None of these
60 In case of liability products, the product differentiation among banks is wafer thin and only value differentiation is the
key factor across banks.Which of the followingmake difference in this regard?
a) Technology b) Process c) Delivery efficiency d) All of these e) Only (a) and (b)
61Which of the following value additions are generally not offered by almost all banks in case of fixed deposits with
banks?
a) provision formonthly, quarterly or cumulative interest payment options.
b) Facility of partial withdrawal without disturbing the entire amount is inbuilt
c) ixed deposits with built in overdraft facilities. d) the group life cover and health cover.
62 For retail assets, which of the following is not a major issue?
a) Product b)price c) process d) delivery innovations e)None of these
63 Which of the following is not a major advantage of retail assets?
a) the stability of the asset base because of the large customer base. b) the better spreads in income.
c) risk diversification. d) scope for capturing additional revenue streams fromother avenues. e) Cheap source
of funds
64 Which of the following is not standard retail asset products offered by banks?
a) Housing loans and consumer loans. b) Car Loans and Personal loans.
c) Credit cards d) Debit cards e) None of these
65 Which of the following is not a retail asset product?
a) loan against rental receivables b) salary overdrafts c) loan against securities
d) loans for traders in the personal segment e) None of these
66 Retail products other than liability products and asset products, which aremeant for providing process and delivery
efficiencies to clients include which of the following?
a) Credit Cards, Debit Cards, and ATM Cards.
b)Telephone Banking, Mobile Banking, Internet Banking. c)Depository Service and Broking
Services. d) Both (a) and (b) only. e) All of these
67 Which of the following products and services are offered with objectives of satisfying customer's multiple
needs and also to augment fee based income?
a) life and non life policies, mutual funds, retail sale of gold coins, bill payment services.
b) payment gateway for rail, air ticket bookings. c) wealthmanagement services, portfoliomanagement services
and private banking. d)Only (a) and (b) e) All of these
68 Banks offer various services like distribution of third party products like life and non life policies, mutual funds,
retail sale of gold coins etc.What is the objective of providing these services?
a) satisfying customer'smultiple needs b)—to augment fee based income c) to augment interest income
d) Both (a) and (b) only e) All of these
69 Which of the following products is offered by almost all public sector banks?
a) Debit Cards b) ATM cards c) Credit Cards d) Both (a) and (b) e) All of these
70 Many Public Sector banks are not in the credit card business. What is the reason for this?
a) It is a big volume game. b) It needs process efficiencies. c) Lack of trained staff.
d)Both (a) and (b) e) All of these
71Which of the following services is generally offered bymost of the public sector banks?
a) Corporate Agency for Life and Non Life Insurance. b) Distribution of mutual funds.
c)Sale of gold coins d)Both (a) and (b) e)All of these
72 Which of the following types of service is generally not offered by ublic Sector Banks?
a) Wealth Management b) Portfolio Management Services c) Bill Payment services
d)Both (a) and (b) e) All of these
73 Product Development is done by banks in different ways. In this regard which of the following is not
correct regarding In house product development strategy?
a) The product is developed independently based on research and on the market dynamics.
b) The best features in the products available in themarket are incorporated along with additional value engineering.
c)No background research is undertaken. d) None of these
74 In case of product development, various strategies are adopted by banks. Which of the following
strategies is generally not relevant?
a) In House product development strategy. b) Follow the leader c)Top Management instructions
d)RBI instructions e) None of these
75 Which of the following is not the feature of 'Follow the leader approach' in product development?
a) In thismethod, product development is based purely onmarket conditions and customer segments.
b) No background research is conducted. c) Product is developed on the same lines as that of leader. d)
None of these
76 In banks, the basis for product development, is on which of the following?
a) The segmentation approach b) Geography based approach c) Classification based approach
d)Approach based on specific customer segments like NRI, HNI, Mass Affluent, Salaried, Professionals,Women etc.
e) Any of these
77Which of the following is not a feature of product development inmost of the PSBs?
a) Product development is done in house incorporating the market dynamics.
b) The market conditions and customer segments of the bank are factored in the development.
c) The views and instructions of the Top Management are the prime drivers of product development in PSBs.
d)Both (a) and (b) e) None of these
78 In the case of public sector banks, which of the following is not given importance for product
development?
a) Geographical area b) Type of branch and centre c) Business potential d) Both (a) and (b)
e)None of these
79 In private sector banks, which of the following factor are considered for product development?
a) Market dynamics. b) Segmentation, classification, customer segments
c)The product positioning adopted by other players. d) All of these
80Which of the following sequence is generally adopted in product development?
a) conducting amarket survey, identifying the needs, pilot testing, getting feed back, fine tuning the product based on
feedback, developing the product, final roll out of the product.
b) identifying the needs, conducting amarket survey, pilot testing, getting feed back, fine tuning the product based
on feedback, developing the product, final roll out of the product
c) conducting a market survey, developing the product, identifying the needs, pilot testing, getting feed
back, fine tuning the product based on feedback, final roll out of the product.
d) conducting a market survey, identifying the needs, developing the product, pilot testing, getting feed
back, fine tuning the product based on feedback, final roil out of the product.
81 In Public sector banks, market survey is generally done through:
a) in house resources b) outsourcing c) through specialists in service industry d) None of these
82 There are various approaches to processing of products and services in retail banking.Which of the following is
not correct in this regard? (i), (ii); (iii)
a) The entire processing is done through in house resources.
b) Some products processed in house and for some products outsourcing is done for process.
c) Outsourcing of entire process subject to prescribing process standards.
d) Outsourcing of entire process without any guideline as it is given to specialists.
e) None of these
83 In Public sector banks and old private banks generally the process for products and services are done
through:
a) Outsourcing b) In house resources c) Major portion is in house with some outsourcing.
d)Major portion is outsourced with some in house processing.
84 What approach is generally adopted in foreign banks, for processing of products and services?
a) The entire process is outsourced and normally happens through a dedicated back office covering the
entire gamut of retail banking services
b) The entire process for products and services is done through in house resources but in some banks, process part
of some products are outsourced.
c) Outsourcing is attempted partially for some process areas.
d) None of these.
85 Banks adopt different process models for retail asset products and the focus is on which of the following?
a) Reducing the risk to maximum possible extent. b)Earningmaximuminterest c) To achieve the best
process efficiencies for capturing the customers. d) None of these
86 For retail assets, the common formof processmodels are Centralised Retail Assets Processing Centres.What are
the features of thismodel?
a) All the retail loans sourced at the branches and marketing team are processed at a single point. b) Retail
loans are financed through that centre only. c) Processing alone is done at the centre and financing can be
done through that centre or at the branches. d) Both (a) and (b) e) Both (a) and (c)
87 In public sector banks, which of the followingmodels is generally adopted for processing of retail asset products?
a) Centralised retail loan processing centre. b) Regional processing centres
c)Standalone processing at branches d) Regional processing centres or branches or a blend of both.
88 In which of the following bank groups, centralised processing is the norm for retail asset processing?
a) Public sector banks b) New Private sector banks c) Foreign banks d) Both (b) and (c)
89 In the centralizedmodel for processing liability products, for opening a saving bank account, which of the following
activities is/are not carried out at a single point?
a) filling the Account opening form b) opening of account, c)Issue of Pass Book and Cheque Book
d)Issuing ATMcard/ Debit card,—PinMailers for the cards. e) None of these
90 In almost all Public sector banks, which of the following method is generally adopted for processing
liability products?
a) Centralized processing model b) Regional Processing Model. c) Stand alone processing model
d)Any one of these
91 In most of the Public Sector banks, which of the following activity is generally done centrally?
a) Opening of accounts. b) KYC compliance c) issue of cheque books
d) issue of ATM/Debit Cards e) None of these
92 Process models differ for products which require single stage process and multi stage process.Which of the
following involves a single stage process?
a) Opening a fixed deposit and issuing receipt. b) Giving car loans c) Housing Loan
d)Both (a) and (b) e)None of these
93. Process models differ for products which require single stage process andmulti stage process.Which of
the following involves a multi stage process?
a) Opening Saving accounts b) Opening Current accounts c) Housing Loans
d)Both (a) and (b) only e) All of these
94.Since process Time is business sensitive and customer sensitive, banks implement process time prescriptions for
different retail asset products. Inmost of the PSBs, the process time is prescribed and varies from days to
days depending upon whether it is processed at the branch or regional hub or centralised processing.
a) 3 days to 7 days b) 5 days to 10 days c) 7 days to 15 days d) 15 days to 30 days
95. Banks consider various factors for designing a Pricing model of products and services.Which of the
following is not considered for pricing?
a) Market dynamics, risk perception, return expectations. b) Tenor or duration
c)RBI guidelines d) Asset Liability Management practices e) None of these
96. In Public sector banks, though pricing is market driven and competitive, in almost all the banks,
pricing is mainly driven on the basis of which of the following?
a) The asset liability management practices of the banks. b) Regulatory advices
c)Feedback fromthe field d) Both (a) and (b) e) All of these
97.Which of the following public sector banks, started implementing aggressive pricing strategies in Housing
Loan segment between 2008 and 2010.
a) Punjab National Bank b) Bank of Baroda c) State Bank of India d) All of these e) None of these
98. Which of the following approach is/are are adopted by banks for Price structuring for products and
services?
a) Stand alone pricing for different products and services is the basic structure.
b) Basic structure is fine tuned as per quantum and volumes.
c) Price preference/ price rebatesmay be given for high value deposits and advances.
d) Both (a) and (b) only e) All of these
99 Which of the following is correct regarding price bundling?
a) Price bundling is a part of price structuring.
b) In price bundling, if a customer avails number of products, then the total price proposition ismade attractive than the
stand alone pricing for the individual products of the bundle.
c) This structuring is a cross selling strategy to entice the customer to availmore products so that profitability per
customer is enhanced. d) All of these e) None of these
100 What is the objective of Price bundling?
a) It is a cross selling strategy. b) 'To entice customer to avail more products.
c) To enhance profitability per customer. d) All of these
ANSWER
1 A 2 D 3 C 4 D 5 D 6 C 7 B 8 C 9 B 10 E
11 D 12 D 13 A 14 A 15 D 16 C 17 C 18 B 19 D 20 B
21 B 22 B 23 D 24 D 25 A 26 D 27 B 28 D 29 C 30 A
31 E 32 B 33 D 34 B 35 B 36 D 37 B 38 E 39 D 40 E
41 E 42 D 43 C 44 D 45 C 46 D 47 E 48 E 49 E 50 C
51 C 52 A 53 D 54 C 55 A 56 C 57 D 58 D 59 B 60 D
61 D 62 E 63 E 64 D 65 E 66 E 67 E 68 D 69 D 70 D
71 D 72 E 73 C 74 D 75 D 76 E 77 E 78 A 79 D 80 D
81 A 82 D 83 C 84 A 85 C 86 E 87 D 88 C 89 E 90 C
91 D 92 D 93 E 94 C 95 E 96 D 97 C 98 E 99 D 100 D

Types of Companies

Types of Companies
Public & Private Company: On the basis of number of members and capital, companies
may be classified into (i) Public Companies & (ii) Private Companies. As per the
Companies Act, 2013 a private company must have a minimum paid-up capital of Rs.
1.00 lakh, minimum of 2 members and a maximum of 200 members. One Person
Company is a private company with only one member. The Companies Act restricts the
rights of members of a private company to transfer its shares and also prohibits an
invitation to the public to subscribe to any shares or the debentures of the company.
A public company means a company, which is not a private company and has a minimum
paid up capital of Rs. 5.00 lacs. A private company which is a subsidiary of a public
company is deemed to be a public company. A public company must have a minimum of
7 members. A public company can issue shares to the general public and the
transferability of shares and related issues etc. are controlled by SEBI. As per the Act,
both the Private as well as Public companies can start its operations only after obtaining
Certificate of Incorporation and Certificate of Commencement of Business.
The Companies Amendment Bill, 2014 (passed by the parliament in 2015) waives the
conditions relating to the minimum amount of capital in respect of both categories of
companies i.e. private as well as public companies.
Government company: A Government company is one in which not less than 51% of
paid up share capital is held by the Government (Central / State). A subsidiary of a
Government company is also a Government company.
Advances to non-corporate clients e.g., partnership firms
It is preferable to finance partnership firms which are registered with the Registrar of
Firms of the local area. The loan account should be opened in the name of the firm and
not in the name of the individual partners irrespective of the fact that one or more of the
partners may be authorized to operate the account. Apart from collateral security, if any,
by way of personal guarantee of a third party, personal guarantee of the partners should
be obtained especially when the firm is not registered as per the Partnership Act.
Whenever changes take place in the constitution of the firm either by death, retirement,
insolvency, expulsion or inclusion of partner, a new partnership is formed. In such cases,
the limits granted to the old firm should be cancelled and credit facilities extended to the
reconstituted partnership firm after examining afresh the creditworthiness of the partners
of the firm and other relevant factors for taking a credit decision. Till the formalities
concerning reconstitution of the partnership of new firm are completed and necessary
loan documents are executed, as interim measure for the sake of continuity of business
activity, operations in the existing Bank account may be permitted only after obtaining a
stamped continuing letter of guarantee signed by all the outgoing partners as well as the
incoming partners. Where personal guarantee of third party has been obtained,
confirmation from the guarantor must also be obtained before allowing operations in the
existing account. It should be ensured that the necessary formalities are completed within
a period of two months.
Where reconstitution takes place in case of a partnership firm, which has created
equitable mortgage of immovable property of the partnership firm in favour of the Bank
for collaterally securing the loans, an agreement on prescribed proforma should be
obtained without disturbing the existing mortgage.
A minor can be a partner of a partnership firm, however he cannot be held liable
personally for any debt of the firm, so this aspect has to be kept in mind while granting
credit facilities to partnership firms.
Limited Liability Partnership (LLP)
LLP is a new corporate form designed to provide an alternative to the traditional
partnership (with unlimited liability on part of the partners) and the corporate statute
(statute based governance with limited liability on part of the shareholders). The LLP
form of business is a hybrid structure between the two, which provides the benefits of
limited liability but allows the partners the flexibility of organizing their internal structure
as a partnership based on a mutually arrived agreement. The Limited Liability Act, 2008
allows two or more persons associating for carrying on a lawful business ‘with a view to
profit’ to set up an LLP.
Hindu Undivided Family (HUF)
An HUF is represented by the head of the family, known as Karta, and the members of
the HUF are known as coparceners. Karta represents the HUF and is authorized to
transact on behalf of the HUF by virtue of age old practice sanctified by law.
With the introduction of Hindu Succession (Amendment) Act 2005, from September 6,
2005, daughters are also given the status of a coparcener.
Karta manages the HUF property on behalf of his family members. However, his powers
are limited and a charge created by him is binding on the family property only when the
loan taken by him is:
• For the purposes of the necessity of the family or,
• For the benefit of the family or,
• For repayment of a lawful antecedent debt due from the family.
Trusts
The Indian Trusts Act, 1882 defines a Trust as an obligation annexed to the ownership of
property and arising out of a confidence reposed in an accepted by the owner, or declared
and accepted by him, for the benefit of another, or of another and the owner
A Trust is formed for the benefit of certain person(s) or purpose. The Trust Deed contains
the aims and objectives of the trust. It lays down the duties and responsibilities of the
Trustees and also the restrictions/ limitations imposed on them.
Operations of Trust accounts have to be very strictly according to provisions of the Trust
deed.
Cooperative Society
While considering credit facility to a co-operative society, it is necessary to examine the
rules or bye-laws of the society, especially the terms on which it can borrow under the
relevant section of the State Co-operative Societies Act, 2002. The lending bank should
obtain a certificate from the society stating that the credit facility sought is within the
overall borrowing limit authorized by the Registrar of Co-operative Societies.

TYPES OF BORROWERS

TYPES OF BORROWERS
The following are the types of borrowers who approach the Bank for credit facilities.
a) Proprietor Ship
b) Partnership firms
c) Private & Public Limited Companies
d) Limited Liability Partnership
e) Trust
f) Hindu Undivided family
g) Societies
Proprietorship firm as Borrower:
Proprietorship is perhaps the simplest form of a borrowing entity. As far as the legal
status is concerned, both the proprietorship and proprietor in individual capacity are
considered the same, though for accounting purposes a proprietorship has to prepare the
financial statements, viz., balance sheet and profit and loss account for an understanding
of the financial health of the concern.
While sanctioning credit facilities to proprietorship firms, it is not necessary to obtain
personal guarantee of the proprietor, as the proprietor is personally liable for any debt of
the proprietorship.
Advances to Limited Liability Companies
In dealing with a Limited Liability Company, the foremost requirement is the company’s
Memorandum and Articles of Association and Certificate of Incorporation. From a
scrutiny of the Memorandum & Articles of Association, it would be revealed whether the
purpose of borrowing is consistent with the stated objectives and whether the advance is
within the borrowing powers of the company. It has to be ensured that no prior charge
exists over any of the assets being offered as security and that the persons executing the
security documents and operating the account(s) are duly authorized.
A company’s borrowing powers are usually specified in the Articles of Association, but
they may not always be limited to a fixed amount. When no mention of borrowing is
made, a trading company may generally be presumed to have power to borrow for the
purpose of its ordinary business, but no advance should be sanctioned in such
circumstances without prior reference to the controlling office.
The powers of a company (public or private) to borrow may be exercised by its Board of
Directors by means of resolutions passed at a meeting (and not by circulation). All
advances granted to companies must, therefore, be supported by resolutions so passed

Caiib BFM recollected yesterday's questions 15.12.2019

Recollected questions posted by our members
Lot of case studies
Around 8 case studies based on
Case Studies on Stock pricing
Case Studies on Variance Volatility
12 month closing stock was given lengthy ques
Case Studies on Forex calculations
Letter or credit
Basel 3
Interest rate risk
SLR/CRR numericals
Call money numericals
Cash management bills
One question each from CP & derivatives
Leverage ratio
T bills 4-5 questions
Pillar 3 of Basel 3 norms (3-4 ques)
Economic equity ratio
3questions based on Aadhaar simulation
Question regarding opening account without kyc documents through introduction
VAR
Who publish mibor
Case study on call and put option
Operating profit numerical question
Bond duration yield relation case study

Caiib HR recollected questions

Caiib HR recollected::
Recollected questions of HR elective (16/12/18. Motivation theories, QC, TQM, Benchmarking, Six sigma, HRP, Career planning, Job analysis, job evaluation, performance appraisal, f w Taylor scientific theory, Elton mayo HR theory, leadership styles, change management, knowledge management, training & development, trade union, labour welfare measures act. It's not only easy to crack & can score very good marks which helps for aggregate purpose too. All the best.

Caiib retail recollected questions on 16.12.2018

CAIIB RETAIL TODAY'S RECOLLECTED QUESTIONS (16.12.2018)

1.CASE STUDY from fair practice code
2. SARFASEI related 5 to 6 questions
3.CASE STUDY gold scheme launched by GOI
4..CASE STUDY on Credit card
5.Bcsbi 5-9 ques
6.Neft settlemnt batches
7.Credit card numerical
8.Education loan casr study
9.Housing loan case studiees 2
10.Pmay one case study
11.Gold monetization scheme one case study
12.Case Study on Gold Scheme launched by GOI
13.Case Study on Education loan
14.Case Study on Housing loan
15.Case Study on PMAY
16.Case Study on Gold monetization scheme

17.Pari passu charge
Same property mortage to 2 banks on different dates
Mortage refers to which law?
Responsiveness, empathy, assurance 1 case study..
Sec 24B maximum exemption

Case studies

Credit card
Housing loan case study
Aur horizontal vertical ka case study
Bcsbi ka case study
Gold loan ka case study
Misc qstn
Emi  vehicle loan ki qstn
Onroad price 9.5lac
Roi & margin 10%
Invoice value 8lac calculate emi
First mobile atm
First talking atm for blind person

Case study on education loan, bcsbi, car loan, lok adalat limit, drt , core augmented potential product, emi calculation, brown label atm. Etc