MSME 200 MCQs

MSME ::

1) The decision to develop a Monetary Policy Framework follows from the recommendation of the
Expert Committee to Revise and Strengthen the Monetary Policy Framework or what is popularly
known as the committee report, which had suggested that RBI target to bring down retail inflation to
8% by January 2015 and 6% by January 2016. a) Dr. Urjit Patel*. b) Dr. Usha Thorat,
c) Dr. Nachiket Mor d) Vijaya Bhaskar
2) As per the Monetary Policy Framework, the objective of monetary policy is to primarily maintain
price stability, while keeping in mind the objective of growth. The monetary policy framework in India
shall be operated by the Reserve Bank of India. Inflation means :
a) The monthly change in the CPI-C expressed in percentage terms.
b) The year-on year change in the half yearly CPI-C expressed in percentage terms.
c) The year-on year change in the monthly CPI-C expressed in
percentage terms* d) None of these.
3) As per the Monetary Policy Framework, the Reserve Bank will aim to bring inflation below ____
percent by January 2016. The Target for financial year 2016-17 and all subsequent years shall be ____
% with a band of +/- ____%.
a) 5;4; 2 b)7;5; 3 c)7 ; 4; 2 d) 6;4;2*
4) As per the Monetary Policy Framework, once every six months, the Reserve Bank shall publish a
document explaining Sources of Inflation; Forecasts of Inflation for the period between _____ to ______
months from the date of the publication of the document; and Flexible inflation target. a) Six ;
Eighteen* b) Five ; Fifteen, c) Four ; Ten d) Six ; Ten
5) As per the Monetary Policy Framework, the Reserve Bank shall be seen to have failed to meet the
target if inflation is more than ____ percent for three consecutive quarters for the financial year 2015-
16 and all subsequent year; Less than ____ percent for three consecutive quarters in 2016-17 and all
subsequent years. a) 8;4 b) 5;2 c) 6;2* d) 5;3
6) As per the Monetary Policy Framework, if the Reserve Bank fails to meet the Target it shall set out
in a report to the Central Government covering which of the following aspects:
a) The reasons for its failure to achieve the Target;
b) Remedial actions proposed to be taken by the RBI;
c) An estimate of the time-period within which the Target would be achieved pursuant to timely
implementation of proposed remedial actions.
d) All of the above*
7) The Government of India, Ministry of Housing and Urban Poverty Alleviation (MoHUPA), has
restructured the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY) and launched the ___.
a) National Urban Livelihood Mission (NULM)*, b) Prime Minister Rojgar Yojana., c) National Rural
Livelihood Mission (NRLM), d) Jan Dhan Yojana.
8) Under National Urban Livelihood Mission the maximum unit project cost for individual micro
enterprise cases is Rs.
_____ : a) 4 lac b) 3 lac c) 2 lac* d) 5 lac
9) As per National Urban Livelihood Mission scheme, which of the following statement is incorrect:
a) Two sub components in terms of beneficiaries are covered namely: Individual Enterprises (SEP-I), &
Group Enterprises (SEP-G).
b) In case of Individual Enterprises (SEP-I), Banks are mandated not to accept any collateral security.
c) In case of Individual Enterprises (SEP-I), the banks may approach Credit Guarantee Fund Trust for
Micro and Small Enterprises setup by SIDBI and Government of India for the purpose of


availing guarantee cover for SEP loans as per the eligibility of the activity for guarantee
cover.
d) In case of Individual Enterprises (SEP-I), repayment schedule ranges from 5 to 7 years after initial
moratorium of 6-18 months as per norms of bank.
e) None of the above*
10) Under the Group Enterprises (SEP-G) component of National Urban Livelihood Mission scheme,
which of the following statement is incorrect:
a) A Self Help Group (SHGs) or members of an SHG constituted under SJSRY / NULM or a group of
urban poor desirous of setting up a group enterprise for self-employment can avail benefit of
subsidized loans under this component from any bank.
b) The group enterprise should have minimum 5 members with a minimum of 70% members from
urban poor families.
c) The maximum unit project cost for a group enterprise is 10,00,000 (Rs. Ten lakhs) and no collateral
to be obtained.
d) The repayment schedule ranges from 5 to 7 years after initial moratorium of 6-18 months as
decided by bank.
e) The target is Women – 30%; Disabled – 3%; and SC / ST – on Pro – rata to local population.
f) None of the above*
11) With respect to loan against shares, debentures and bonds, which of the following is incorrect as
per RBI guidelines:
a) Loans against the security of shares, debentures and bonds should not exceed the limit of Rupees
Ten lakhs per individual if the securities are held in physical form and Rupees Twenty lakhs per
individual if the securities are held in dematerialised form.
b) Banks should maintain a minimum margin of 50 percent of the market value of equity shares /
convertible debentures held in physical form.
c) In the case of shares / convertible debentures held in dematerialised form, a minimum margin of 25
percent should be maintained. These are minimum margin stipulations and banks may stipulate higher
margins for shares whether held in physical form or dematerialised form.
d) The margin requirements for advances against preference shares / non-convertible debentures and
bonds may be determined by the banks themselves.
e) None of the above.*
12) As per RBI directions, all Credit Institutions (CI’s) should become member of Credit Information
Companies (CICs) and submit data (including historical data) to them with in a period of ____ months.
a) 6 b) 2 c) 3 * d) 1
13) How many CIC’s have been granted Certificate of Registration by RBI ?
a) 4* b) 3 c) 2 d) 1
14) The one-time membership fee charged by the CICs, for CIs to become their members, shall not
exceed Rs._____ each and annual fees charged by the CICs to CIs shall not exceed Rs. ______ each.:
a) Rs.5,000; Rs.2,500 b) Rs.10,000; Rs.2,500, c) Rs.10,000*; Rs.5,000* d) Rs. 20000;
Rs.5,000
15) As per RBI guidelines to banks, a credit card a/c will be treated as NPA if the minimum amount due,
as mentioned in the statement, is not paid fully within ____ days from the next statement date and the
gap between two statements should not be more than one month. a) 90* b) 60 c) 50 d) 30
16) Reserve Bank of India has decided that the interest rates charged by an NBFC-MFI to its borrowers
will be the cost of funds plus margin, or the average base rate of the five largest commercial banks by
assets multiplied by____:
a) 5 b) 2.50 c) 2.75* d) 3.5
17) Securitisation Companies / Reconstruction Companies (SC / RCs) are permitted to convert a portion
of debt into shares of the borrower company as a measure of asset reconstruction provided their
shareholding does not exceed ____ of the post converted equity of the company under reconstruction.
a) 30% b) 20% c) 26%* d) 28%
18) Securitisation Companies / Reconstruction Companies (SC/RCs) are required to obtain, for the
purpose of enforcement of security interest, the consent of secured creditors holding not less than
____of the amount outstanding to a borrower as against ____hitherto. a) 30%, 75% b) 75%,
60% c) 60%,75%* d) 50%,75%
19) A person makes a draft payable in the name of another person from any particular bank for
an amount less than Rs.49,000/-. This person, on whose name the draft is made, further
endorses it in the name of another person in lieu of payment for purchase of goods or services.
The draft is used as a payment cheque without real money changing hands. In the end, there is
a specific group of people who deposits these drafts in their bank accounts, and takes a
commission of 1-2% to encash them. This process of conducting transactions is called:





a) Money Laundering b) Money Mules, c) Street Financing* d) Financial frauds
20)are individuals with bank accounts recruited by fraudsters to receive cheque deposit or wire
transfer for the purpose of money laundering. They receive cheque deposits or wire transfers and then
transfer these funds to a/cs held on behalf of another person or other individuals, minus a certain
commission.
a) Street Financing b) Money Mules*, c) Money Laundering d) Financial frauds
21) For Money Transfer Service Scheme, Indian Agent should be an Authorized Dealer Category-I bank
or an Authorized Dealer Category-II or a Full Fledged Money Changer with minimum Net Owned Funds
of ________:
a) 30 lakhs b) 35 lakhs c) 40 lakhsd) 50 lakhs*
22) A cap of ________has been placed on individual remittance under the Money Transfer Service
Scheme. Amounts up to Rs.50,000/- may be paid in cash to a beneficiary in India. Further, only 30
remittances can be received by a single individual beneficiary under the scheme during a calendar
year. a) US $2000 b) US $2500* c) US $ 3000 d) US $3500
23) The outstation cheques under Speed Clearing will be paid on T+1 or 2 basis within______:
a) 48 hrs* b) 24 hrs c) 6 hrs d) 12 hrs
34) Presenting branches are currently permitted to levy charges at a rate not exceeding _____per
cheque (inclusive of all charges other than Service Tax) for cheques of above Rs. 1 lakh presented
through Speed Clearing. No charges are payable for cheques of value up to Rs. 1 lakh from Savings a/c
customers. Banks would be free to fix charges for collection of other types of accounts for all values
and also from Savings a/c customers for cheque of value above Rs. 1 lakh.
a) Rs. 100 b) Rs. 150* c) Rs. 200 d) Rs. 250
24) For evaluation and ratings of banks, RBI uses the_______. The new system is termed as _______.
The new system to capture the risks that may cause a bank to fail. a) CAMELS; INROADS* b)
INROADS; CACS, c) CAMELS; CACS e) CRISIL; CARE
25) As per the new module advised by CERSAI, for delay condonation w.e.f. 1st December, 2014,
whereby any transaction which is filed after 30 days of creation of security and upto _____will
attract additional fee.
a) 45 days b) 60 days*, c) 90 days d) None of these
26) If the registration on CERSAI is done from 31st to 40th day after the date of transaction, the
additional fee will be charged _______ if loan amount is upto Rs. 5 lakh. The amount of additional
fee will be ______if loan amount is above Rs. 5 lakh.
a) Rs. 500 & 1,000* b) Rs. 1000 & 1,500, c) Rs. 1,000 & 2000 d) Rs. 500 & 1,500
27) If the registration on CERSAI is done from 41st to 50th day after the date of transaction, the
additional fee will be charged ______ if loan amount is upto Rs. 5 lakh. The amount of additional
fee will be _______if loan amount is above Rs. 5 lakh.
a) Rs. 750 & 1,000 b) Rs. 1250 & 2,500*, c) Rs. 1,250 & 2000 d) Rs. 1000 & 1,500
28) If the registration on CERSAI is done from 51st to 60th day after the date of transaction, the
additional fee will be charged _________ if loan amount is upto Rs. 5 lakh. The amount of
additional fee will be if loan amount is
above Rs. 5 lakh. a) Rs. 2000 & 2500 b) Rs. 2000 & 3000, c) Rs. 2500 & 5000* d) Rs.
3000 & 5000
29) While doing Risk Rating, an asset is downgraded from A+ rating to A rating. What type of risk is
involved?
a) Market Risk b) Credit Risk*, c) Interest Rate Risk d) None of these
30) To help in the government's 'smart cities' programme, SEBI approved a new set of norms for
listing and trading of municipal bonds on stock exchanges, while channelising household
investments for urban infrastructure development. These municipal bonds, also known as _____
bonds. a) Muni Bonds* b) Corporation Bonds, c) Smart Bonds d) None of these
31) The Reserve Bank notified the decision to raise foreign direct investment (FDI) cap in the
Insurance sector to ____ from existing cap of 26%. a) 45% b) 49%* c) 50% d)
51%
32) As per new Foreign Trade Policy, value of Export Performance FOB / FOR for ‘Two Star Export
House’ category during current and previous 2 years is : a) 10 b) 15 c) 25* d) 20
33) As per new Foreign Trade Policy, value of Export Performance FOB /FOR for ‘Four Star Export
House’ category during current & previous 2 years is : a) 100 b) 500*, c) 1000 d) 2000.
Records of transactions to be maintained for at least _____from the date of transaction, instead
of ten years from the date of cessation of transactions, and records pertaining to identification of
the customer and his address to be preserved for at least ____ after the business relationship is
ended.
a) 10,10* b) 10,15 c) 15,10 d) 5,10
35) The Suspicious Transaction Report (STR) bank as a whole, should be furnished to the FIU–


IND, within _____ days of arriving at a conclusion that any transaction, including an attempted
transaction, whether cash or non-cash, or a series of transactions integrally connected are of
suspicious nature:
a) 10 days b) 7days* c) 15 days d) 5 days
36) Under Pradhan Mantri Suraksha Bima Yojana – Premium payable is Rs.____ per annum per
member and sum insured on death is ____and partial disability is ____. a) Rs.10; 2 lakhs; 1 lakh b)
Rs. 12; 2 lakhs; Rs. 50,000
c) Rs.25; Rs.1 lakh; Rs. 50,000 d) Rs.12; Rs.2 lakh; Rs. 1 lakh*
37) To be eligible for claim under PM Jeeven Jyoti Yojna, the age limit for all saving accounts holder
should be between:
a) 18 to 45 yrs b) 18 to 50 yrs* c) 18 to 55 yrs d) 18 to 60 yrs
38) The premium payable under PM Jeeven Jyoti Yojna, is _______ p.a. and assures benefits of Rs.
____ on death due to any reason. a) Rs. 330 & Rs. 2 lakh* b) Rs. 250 & Rs. 2 Lakhs, c) Rs.300 &
Rs. 2.50 lakhs d) Rs. 230 & Rs. 3 lakhs
39) The limit of Education loan for vocational purpose in India for course duration upto 3 months is Rs.
________.
a) 20,000* b) 30000 c) 40000 d) 25000
40) What is the Full form of MUDRA?
a) Micro Units Development and Refinance Agency Ltd *, b) Modern Units Development and
Refinance Agency Ltd, c) Micro Units Development and Reconstruction Agency Ltd, d) None of
these
41) Which tax has been abolished in Budget 2015-16:- a) Goods and Service Tax b) Wealth Tax*,
c) Corporate Tax d) Property Tax
42) MUDRA is set up with a corpus of ___ and a credit
guarantee corpus of Rs 3,000 crore.
a) Rs.15,000 Crore b) Rs. 20,000 Crore*, c) Rs. 30,000 Crore d) Rs. 50,000 Crore
43) As per the new budget, Surcharge has been increased to ____ for individuals earning 1 crore and
above annually and on firms with an annual income of Rs. 10 crore or more. a) 10% b) 12%*
c) 14% d) 15%
44) The full form of GIFT City is:-
a) Gandhinagar International Finance Tec-City, b) Gujarat International Finance Tec-City*, c)
Gujarat Indian Financial Tec-City, d) Gandhinagar Indian Financial Tec-City
45) Full Form of CRILC City is:
a) Central Repository of Information on Large Credits*, b) Central Reserve of Information on Large
Credits, c) Central Repository of Information on, d) None of the above
46) Full form of MIBOR;
a) Mumbai Inter bank Offered Rate*, b) Mutual Inter bank Offered Rate, c) Mumbai International
Offered Rate
b) Mumbai Inter bank Offer & Bid Rate
47) The limit of Education loan for vocational purpose in India for course duration for 3 to 6 months is
______:
a) 40,000 b) 50000* c) 60000 d) 75000
48) The limit of Education loan for vocational purpose in India for course duration of 6 months to 1
year is ______:
a) 60,000 b) 85,000 c)1,00,000 d) 1,25,000*
49) The limit of Education loan for vocational purpose in India for course duration above 1 year is :
a) Rs.1.5 lakh* b) Rs. 2 lakhc) Rs.2.5 lakh d) Rs.3 lakh
50) Under SHG all the members of the group must be from BPL, however, a maximum of 20% in
general and 30% in exception can be from marginally above poverty line subject to the condition that
APL members not eligible for subsidy
a) 20%, 30%* b) 25%, 35%, c) 20%, 25% d) 15%, 25%
51) If the bank has raised an unauthorized/erroneous direct debit to an account and on verification of
the entry it is found to be erroneous and the customer does not involve a third party, the bank will
endeavor to complete the process of verification within a maximum period of _____ working days from
the date of reporting of erroneous debit. In case, the verification involves a third party or where
verifications are to be done at overseas centers, the bank shall complete the verification process within
a maximum period of _____ month from the date of reporting of erroneous transaction by the
customer.
a) 7 : one* b) 5; one c)14; two d) 10; three
52) The Bank will undertake to carry out direct debit / ECS debit instructions of customers in time. In
the event the bank fails to meet such commitments customer will be compensated to the extent of on
account of delay


in carrying out the instruction/failure to carry out the instructions.
a) Any financial loss the customer would incur* b) Rs. 1000/- c) Rs. 2500/- d) Rs. 5,000/
53) Where it is established that the bank had issued and activated a credit card without consent of the
recipient, the bank would not only reverse the charges immediately but also pay a penalty without
demur to the recipient amounting to _______ as per regulatory guidelines in this regard.
a) Twice the value of charges reversed*, b) Thrice the value of charges reversed, c) Value of
charges reversed
b) None of these
54) In case a cheque has been paid after stop payment instruction is acknowledged by the bank, the
bank shall reverse the transaction and give value-dated credit to protect the interest of the customer.
Any consequential financial loss to the customer will be compensated. Such debits will be reversed
within ____ working days of the customer intimating the transaction to the bank a) 3 b) 5 c)
2* d) 7
55) The bank will compensate the customer for undue delays in affording credit once proceeds are
credited to the Nostro Account of the bank with its correspondent. Such compensation will be given for
delays beyond
week / weeks from the date of credit to Nostro Account/ due date after taking into account normal
cooling period stipulated. The compensation in such cases will be worked out keeping in view interest
for the delay in crediting proceeds and compensation for any possible loss on account of adverse
movement in foreign exchange rate.
a) One*, b) Two, c) Three, d) Four
56) As part of the compensation policy of the bank, the bank will pay interest to its customer on the
amount of collection instruments in case there is delay in giving credit beyond the time period specified
in banks cheque collection policy. Interest for delayed collection shall be paid at the Savings Bank rate
for the period of delay beyond ____, ____, _____ days as the case may be in collection of outstation
cheques.
a) 5/10/15 b) 7/10/14* c) 3/5/7d) none of these
57) The bank will pay interest to its customer on the amount of collection instruments in case there
is delay in giving credit beyond 14 days. Interest will be paid at the rate applicable for term deposit for
the corresponding respective period or Saving Bank rate, whichever is higher. In case of extraordinary
delay, i.e. delays exceeding ____ days interest will be paid at the rate of ___% above the
corresponding Term Deposit rate. a) 60;2 b) 30;3 c) 90; 2* c) 45;2
58) In the event the proceeds of cheque under collection was to be credited to an overdraft/loan
account of the customer, interest will be paid at the rate applicable to the loan account. For
extraordinary delays, interest will be paid at the rate of ____above the rate applicable to the
loan account. a) 4% b) 3% c) 2%* d) 2.5%
59) In line with the compensation policy of the bank, the bank will compensate the account holder in
respect of instruments lost in transit. In case intimation regarding loss of instrument is conveyed to
the customer beyond the time limit stipulated for collection_____, ____, _____ days as the case
may be) interest will be paid for the period exceeding the stipulated collection period at the rates
specified above. a) 4/8/12 b) 5/10/15 c) 7/10/14* d) 6/10/13
60) Issue of Duplicate Draft and Compensation for delays Duplicate draft will be issued within a
_______ from the receipt of such request from the purchaser thereof. For delay beyond the
above stipulated period, interest at the rate applicable for of corresponding period will be
paid as compensation to the customer for such delay.
a) Fortnight; Fixed Deposit* b) 10 days; Fixed Deposit, c) Fortnight; cumulative Deposit d) 30 days
/ Fixed Deposit
61) In addition, bank will pay interest on the amount of the cheque for a further period of ________
days at Savings Bank rate to provide for likely further delay in obtaining duplicate cheque /
instrument and collection thereof.
a) 15* b) 10 c) 7 d) 12
62) Violation of the Code by banks agent In the event of receipt of any complaint from the customer
that the bank’s representative / courier or DSA has engaged in any improper conduct or acted in
violation of the Code of Bank’s Commitment to Customers which the bank has adopted
voluntarily, the bank is committed to investigate the matter and endeavor to communicate the
findings to the customer within _____ working days from the date of receipt of complaint and
wherever justified, compensate the customer for financial loss, if any, as contemplated under this
policy.
a) 10 b) 7* c) 12 d) 15
In terms of the guidelines for lenders liability, and the Code of Bank’s Commitment to customers, the
bank would return to the borrowers all the securities / documents / title deeds to mortgaged property
within _____ days of repayment of all dues agreed to or contracted The bank will compensate the



borrower for monetary loss suffered, if any due to delay in return of the same. In the event of loss of
title deeds to mortgage property at the hands of the banks the compensation will cover out of pocket
expenses for obtaining duplicate documents plus a lump sum amount as decided by the bank.
a) 7 b) 15*, c) 21 d) 25
64) It is mandatory for bank to reimburse the customer, the amount wrongfully debited on account of
failed ATM within a maximum period of _____ working days from the receipt of the complaint. For any
failure to re-credit the customer’s account within the stipulated period from the date of receipt of the
complaint, bank shall pay compensation of Rs._____ - per day to the aggrieved customer. This
compensation shall be credited to the customer’s account automatically without any claim from the
customer, on the same day when bank affords the credit for the failed ATM transactions.
a) 5;100 b) 10;150, c) 14;150 d) 7;100/-*
65) Which of the following statement is incorrect?
a) The bank will not honour cheques drawn on current accounts maintained by other banks with it
unless arrangements are made for funding cheques issued. Issuing bank should be responsible to
compensate the cheque holder for non payment / delayed payment of cheques in the absence of
adequate funding arrangement.
b) The Bank would not compensate the customer for delays in collection of cheques designated in
foreign currencies sent to foreign countries as the bank would not be able to ensure timely credit
from overseas banks.
c) In the event a cheque or an instrument accepted for collection is lost in transit or in the clearing
process or at the paying bank’s branch, the bank shall immediately on coming to know of the loss,
bring the same to the notice of the account holder so that the account holder can inform the
drawer to record stop payment and also take care that cheques, if any, issued by him / her are not
dishonoured due to non-credit of the amount of the lost cheques / instruments. The bank would
provide all assistance to the customer to obtain a duplicate instrument from the drawer of the
cheque.
d) The bank would not compensate the customer for any reasonable charges he/she incurs in getting
duplicate cheque / instrument upon production of receipt. The instrument is to be obtained from a
bank/ institution who would charge a fee for issue of duplicate instrument.*
66) The Reserve Bank has set out a five-pillar framework to guide its developmental and regulatory
measures. Which of the following is not the regulatory pillar:
a) PILLAR – I: Clarifying and strengthening the monetary policy framework.
b)PILLAR – II: Strengthening banking structure through new entry, branch expansion, encouraging
new varieties of banks, and moving foreign banks into better regulated organisational forms.
c) PILLAR – III: Broadening and deepening financial markets and increasing their liquidity and
resilience so that they can help absorb the risks entailed in financing India’s growth.
d) PILLAR – IV : Expanding access to finance to small and medium enterprises, the unorganised
sector, the poor, and remote and underserved areas of the country through measures to foster
financial inclusion.
e) PILLAR – V: Improving the system’s ability to deal with corporate distress and financial institution
distress by strengthening real and financial restructuring as well as debt recovery.
f) None of the above*
68) Which pillar of RBI’s developmental and regulatory measures emphasizes on
Strengthening banking structure through new entry, branch expansion, encouraging new
varieties of banks, and moving foreign banks into better regulated organisational forms. a) Pillar I b)
Pillar III c) Pillar II* d) Pillar V
69) Which pillar of RBI’s developmental and regulatory measures emphasizes expanding access to
finance to small and medium enterprises, the unorganised sector, the poor, and remote and
underserved areas of the country through measures to foster financial inclusion. a) Pillar I b)
Pillar IV* c) Pillar II d) Pillar V
90) On a review of the permitted transactions under the Rupee Drawing Arrangements (RDAs), the
Reserve Bank increased the limit of trade transactions from the existing Rs.5,00,000/- per transaction
to Rs._______ per transaction, with immediate effect.
a) 10,00,000 b) 12,00,000 c) 15,00,000*d) 17,50,000
91) The concept of a _______ account was introduced in the current framework as an important step in
fraud risk control.
a) Special Mention account. b) Red Flagged *, c) High Risk account. d) Early Mortality account.
92) A is one where suspicion of fraudulent activity is thrown up by the presence of one or more Early
Warning Signals (EWS). This concept has been introduced in the current framework as an important
step in fraud risk control. a) Red Flagged Account* b) Special Mention account., c) High Risk account.
___________________ d) Early Mortality account.


93) The threshold for Early Warning Signals and Red Flagged Account is an exposure of ________ or
more at the level of a bank irrespective of the lending arrangement (whether solo banking, multiple
banking or consortium). a) 100 million b) 250 million c) 500 million* d) 1000 million
94) The officer responsible for the operations in the account should be sensitized to observe and report
any manifestation of the Early Warning Signal promptly to the or any other group constituted by the
bank
for the purpose immediately.
a) Fraud Monitoring Group (FMG) *, b) Fraud Management Group (FMG), c) Core Monitoring Group
(CMG), d) Fraud Surveillance Group (FSG)
95) The Framework for fraud risk management in banks also includes broad guidelines relating to the,
which of the following?
(i) Reporting to the Central Repository of Information on Large Credits (CRILC).
(ii) Lending under consortium or multiple banking arrangements
(iii) Staff accountability.
(iv) Filing complaints with law enforcement agencies.
(v) Penal measures for fraudulent borrowers
(vi) Central Fraud Registry.
a) (i) & (ii) only b) (iii) to (vi) only, c) All of the above* d) None of these
96) The Reserve Bank has advised all public sector banks and select private sector and foreign banks
to appoint an internal Ombudsman. The internal Ombudsman would be designated as :-
Chief Ombudsman Service Officer, B) Chief Customer Ombudsman Officer, C) Internal
Ombudsman Customer Service Officer, D) Chief Customer Service Officer*
97) The Reserve banks has directed all ______ and few to appoint Chief Customer Service
Officers. (Internal Ombudsman).
a) Public Sector Banks; Private Sector & Foreign Banks*
b) Private Sector Banks; Foreign Banks
c) Private Banks & Foreign Banks
d) Private Sector Banks; Public Sector Banks
98) As per the revised norms, the procedures for acquisition of accommodation on lease / rental basis
by all commercial
banks will now be determined by the ____ :- a) State Govt. b) RBI, c) Banks themselves* d)
Ministry of Finance
99) P.J. Nayak Committee has prescribed seven broad themes to the Reserve Bank to advise all public
sector banks to suitably determine the agenda items and the periodicity thereof, keeping in view that
there is adequate focus on matters of strategic and financial importance. The seven themes include
business strategy, financial reports and their integrity, risk, compliance,_______, and human
resources.
a) Customer protection, Financial inclusion*
b) Customer awareness, Financial integrity
c) Customer awareness, Fraud management.
d) Strategic Marketing, Financial inclusion
100) The Reserve Bank had, in the first bi-monthly monetary policy statement 2015-16, proposed to
do away with the _____ and instead, replace it with the seven critical themes. b) Calendar of Reviews*
c) Monitoring of strategic assets, D) Calendar of performance parameters
101) In order to enable Private Sector Banks to attract and retain professional directors, the Reserve
Bank has issued guidelines on compensation for non-executive Directors for implementation by private
sector banks, that will reflect market realities and will be within the parameters specified in the
Banking Regulation Act, 1949 and the Companies Act, 2013. Such compensation, however, shall not
exceed _____ per annum for each director. a) 1 million* b) 1.5 million c) 0.5 million d) 2
million
102) The Board may, at its discretion, provide for in the policy, payment of compensation in the form
of ______ to the non-executive directors (other than the Part-time Chairman), subject to the bank
making profits. a) Bonus b) Commission on profits*, c) Additional Shares d) None of these
103) In addition to the directors’ compensation, the bank may pay _______ to the non-executive
directors and reimburse their expenses for participation in the Board and other meetings. a) Sitting
fees* b) Commission, c) Bonus d) Additional allowances
104) Banks in private sector would be required to obtain prior approval of the Reserve Bank for
granting _______ to the part-time non-executive Chairman. a) Bonus b) Commission, c)
Remuneration* d) Loans
105) The compensation policies of banks would be subject to supervisory oversight including review
under the Supervisory Review and Evaluation Process (SREP) under ______ framework.
a) Pillar 2 and Basel III framework

b) Pillar 3 and Basel III framework
C) Pillar 2 and Basel II framework* D) Pillar 1 and Basel II framework
106) Banks are required to make disclosure on remuneration paid to the directors on an ______ basis
at the minimum, in their Annual Financial Statements. a) Semi annual b) Quarterly c) Monthly
d) Annual*
107) Under the revised criteria for opening of branches / extension counters / specialised branches
within the area of operation of the StCBs, Capital to Risk (Weighted) Assets Ratio (CRAR) should not
be less than :- a) 9 percent * b) 10 percent c) 8 percent d) 10.5 percent
108) Under the same revised criteria, net Non Performing Assets (NPA) should be less than ______:
a) 9 percent b) 5 percent*, c) 8 percent d) 6 percent
109) The Reserve Bank has relaxed its requirement of additional factor of authentication (AFA) for
across all merchant categories to enhance customer convenience while ensuring security in card based
transactions.
a) Low Value Card Present Transactions, b) High Value Card Present Transactions, c) Small Value
Card Present Transactions, d) None of the above.
110) The Reserve Bank has advised all scheduled commercial banks that relaxation for additional
factor of authentication (AFA) requirement is permitted for transactions for a maximum value of
______: a) Rs. 2000 per transaction* b) Rs. 2500 per transaction, c) Rs. 5000 per transaction
d) Rs. 10000 per transaction
111) For additional factor of authentication (AFA) beyond the transaction limit prescribed by RBI, the
card has to be processed as a contact payment and authentication with:- a) PAN (AFA) b) MICR
(AFA), c) PIN (AFA)* d) IFSC (AFA)
112) Even for transaction values below the limit prescribed by RBI, the customer may choose to make
payment as a contact payment. In other words, customers cannot be compelled to do a ________
payment.
a) On the spot b) Contactless* c) Cash less d) None
113) The Contactless cards should necessarily be chip cards adhering to _________ compliant
payment standard, so as to be acceptable across the existing card acceptance infrastructure.
a) Europay, MasterCard and Visa (EMV)*
b) RuPay, MasterCard and Visa (RMV)
c) Only MasterCard and Visa. d) Europay and RuPay only.
114) The Reserve Bank has advised all scheduled commercial banks, that with effect from ________,
all new cards issued – debit and credit, domestic and international by banks shall be EMV chip and PIN
based cards. a) 16-8-2015 b) 1-9-2015* c) 1-1-2016 d) 1-4-2016
115) The Reserve Bank has advised authorised dealer (category–I) banks that recognised non-resident
External Commercial Borrowing (ECB) lenders may enter into swap transactions with their overseas
bank which shall, in turn, enter into a back-to- back swap transaction with any AD Category-I bank in
India for mobilizing ______as per the prescribed procedure.
a) INR* b) $ c) Euro d) Discretion of the bank
116) On a review of the permitted transactions under the Rupee Drawing Arrangements (RDAs), the
Reserve Bank increased the limit of trade transactions from the existing Rs.5,00,000/- per transaction
to Rs. _______ per transaction, with immediate effect. a) 7,50,000 b)10,00,000 c) 12,50,000 d)
15,00,000*
117) Recently, which category of banks were advised by RBI under the framework for Revitalising
Distressed Assets in the Economy – Guidelines on Joint Lenders’ Forum (JLF) and Corrective Action
Plan:
a) All Scheduled Commercial Banks (excluding RRB’s), b) Exim Bank c) SIDBI d) NHB e)
All of these*
118) With a view to ensuring more stake of promoters in reviving stressed accounts and provide banks
with enhanced capabilities to initiate change of ownership in accounts which fail to achieve the
projected viability milestones, banks may, at their discretion, undertake a by converting loan dues
to equity shares.
a) Strategic Debt Restructuring (SDR)*, b) Corporate Debt Restructuring (CDR), c) Organizational
Debt Restructuring (ODR), d) Stressed Debt Restructuring (SDR)
119) At the time of initial restructuring, the JLF must incorporate, in the terms and conditions, an
option to convert the entire loan (including unpaid interest), or part thereof, into ______ in the
company in the event the borrower is not able to achieve the viability milestones and/or adhere to
‘critical conditions’ as stipulated in the restructuring package. a) Bonds b) Shares* c)
Debentures d) All above
120) If the borrower is not able to achieve the viability milestones and/or adhere to the ‘critical
conditions’ referred to above, the JLF must immediately review the account and examine whether the
account will be viable by effecting a change in_______.


a) Structure b) Ownership* c) Legal Statusd) None
121) The decision on invoking the Strategic Debt Restructuring (SDR) by converting the whole or part
of the loan into equity shares should be taken by the Joint Lenders’ Forum ( JLF) as early as possible
but within _______days from the above review of the account.
a) 60 b) 45, c) 30* d) 90
122) The decision on invoking the Strategic Debt Restructuring (SDR) should be well documented
and approved by the majority of the Joint Lenders’ Forum members which comprise of minimum of
______ percent of creditors by value and _____ percent of creditors by number.
a) 60, 50 b) 80, 50, c) 55, 60 d) 75, 60*
123) Post the conversion, all lenders under the Joint Lenders’ Forum must collectively hold ______
percent or more of the equity shares issued by the company. a) 49 b) 60 c) 51* d) 45
124) For accounts which have been referred by the JLF to CDR Cell for restructuring, JLF may decide
to undertake the SDR either directly or under the ______ Cell.
a) Strategic Debt Restructuring, b) Corporate Debt Restructuring*, c) Organizational Debt
Restructuring (ODR), d) Stressed Debt Restructuring (SDR)
125) On completion of conversion of debt to equity as approved under Strategic Debt Restructuring,
the existing asset classification of the account, as on the reference date, will continue for a period of
______ months from the reference date.
a) 15 months b) 18 months* c) 12 months d) 10 months
126) Banks should ensure compliance with the provisions of _______ and JLF should closely monitor
the performance of the company and consider appointing suitable professional management to run the
affairs of the company.
a) Banking Regulation Act* b) Companies Act, 2013, c) Reserve Bank of India Act. d)
SARFAESI Act
127) On divestment of banks’ holding in favour of a ‘new promoter’, the asset classification of the
account may be upgraded to ______ , subject to the prescribed conditions.
a) Special Mention Account. b) Sub Standard, c) Standard* d) None of the above
128) At the time of divestment of their holdings to a ‘new promoter’, banks may the existing debt
of the company considering the changed risk profile of the company without treating the exercise as
‘restructuring’ subject to banks making provision for any diminution in fair value of the existing debt on
account of the refinance.
a) Refinance* b) Rephrasec) Reschedule d) Capitalise
129) The Joint Lender Forum must approve the Strategic Debt Restructuring (SDR) conversion
package within ___ days from the date of deciding to undertake SDR. a) 90* b) 45 c) 60 d)
30
130) Which of the following documents have been recently advised by RBI to be deemed to be
Officially Valid Documents (OVD’s) under simplified measures relating to KYC norms for ‘low risk’
customers for the limited purpose of proof of address where customers are unable to produce any
officially valid document:
i) Utility bill which is not more than two months old of any service provider (electricity, telephone,
postpaid mobile phone, piped gas, water bill);
ii) Property or Municipal Tax receipt;
iii) Bank account or Post Office savings bank account statement
iv) Pension or family pension payment orders (PPOs) issued to retired employees by Government
Departments or Public Sector Undertakings, if they contain the address;
v) Letter of allotment of accommodation from employer issued by State or Central Government
departments, statutory or regulatory bodies, public sector undertakings, scheduled commercial
banks, financial institutions and listed companies. Similarly, leave and license agreements with
such employers allotting official accommodation; and
vi) Documents issued by Govt. deptt. of foreign jurisdictions and letter issued by Foreign Embassy or
Mission in India.
a) Only (i), (ii), (iii)b) Only (iv), (v), (vi), c) All except (v) & (vi) d) All of the above*
131) The compensation policies of banks would be subject to supervisory oversight including review
under the Supervisory Review and Evaluation Process (SREP) under framework.
a) Pillar 2 and Basel III framework, b) Pillar 3 and Basel III framework, c) Pillar 2 and Basel II
framework*, d) Pillar 1 and Basel II framework
132) With a view to developing strong risk management capabilities to manage agri-commodity price
risk, the Reserve Bank advised all scheduled commercial banks (excluding regional rural banks) to
encourage by the agri-borrowers through agri-commodity derivatives. a) Speculation b)
Crystalisation c) Hedging* d) Forward sale
133) The Reserve Bank advised all-India Term Lending and Refinancing Institutions (AIFI) to make
certain disclosures in addition to the extant disclosure requirements in the Notes to Accounts in their


Annual Financial Statements relating to sale of ______ to Securitisation Companies / Reconstruction
Companies.
a) Fixed assets. b) Non-Performing Assets*, c) Intangibles d) Investments.
134) On a review, the Reserve Bank allowed all scheduled commercial banks (excluding RRBs) to
invest in the
issued by other banks for financing of infrastructure and affordable housing. In order to prevent
double counting of regulatory exemptions allowed, such investments will be subject to prescribed
conditions. a) Long term debentures b) Long term loans
c) Long term bonds* d) Equity & preference shares
135) The RBI has continued to provide liquidity under overnight repos at ____ per cent of bank-wise
NDTL at the LAF repo rate and liquidity under 14-day term repos as well as longer term repos of up to
____ per cent of NDTL of the banking system through auctions. a) 0.50 ; 1 b) 0.25; 0.50 c) 0.25;
0.75* d) 0.50; 0.75
136) The Reserve Bank released the final guidelines for introduction of 6-year and 13-year cash
settled Interest Rate Futures (IRF) on Government of India Securities with residual maturity of
__________and _______respectively.
a) 4-8 years, 11-15 years* b) 6-8 years, 10-15 years, c) 7-8 years, 12-15 years d) 8-10 years,
12-5 years
137) Agency banks may also promote the use of among pensioners, which would eliminate the need
for physical presence at branches and issue of acknowledgement. b) Digital Life Policy, c) Pension
Life code _____________ d) Digital Life Certificate*
138) The Government of India has also launched a scheme for introduction of Aadhaar based digital
life certificates known as_________: a) Jeevan Life certificate, b) Jeevan Life code, c) Jeevan
Praman*, d) Jeevan Praman certificate
139) The RBI has permitted all banks authorised to deal in foreign exchange to allow remittances by a
resident individual up to _______ per financial year for any permitted current or capital account
transaction or a combination of both under Liberalised Remittance scheme.
a) USD 1,50,000 b) USD 2,00,000, c) USD 2,50,000* d)
USD 1,75,000
140) As per the revised guidelines, the PAN Card is mandatory if the sale/purchase of Immoveable
property is valued excceding Rs. _____. Further, PAN is also needed if properties valued by stamp
valuation authority exceeds the amount of Rs. :
a) Rs 5 lakh and Rs 10 lakh b) Rs 10 lakh and Rs 10 lakh*, c) Rs 10 lakh and Rs 15 lakh d) Rs 10
lakh and Rs 20 lakh
141) Which of the following is correct regarding Time Deposit with a Banking Company w.r.t PAN Card:
a) The PAN Card is mandatory if deposits aggregating is more than Rs. 5 lac during the year.
b) The PAN Card is mandatory even if depositor has an account with Co-op Banks, Post office, Nidhi,
NBFC companies.
c) The PAN Card is mandatory if deposits aggregating is more than Rs. 50,000/- during the year.
d) The PAN Card is mandatory if deposits aggregating is more than Rs. 1,00,000/- during the year.
a) Only a & b are true* b) All b & c are true
c) Only b & d are true d) All are true.
142) In case of deposits with Post office and Saving Bank, the PAN Card is mandatory if the amount is
exceeding Rs. _______: a) Rs 10,000 b) Rs 20,000, c) Rs 50,000 d) Discontinued*
143) In case of Sale or Purchase of securities, the PAN Card is mandatory if the contract of
sale/purchase value is exceeding Rs. ____: a) Rs 5 lakh b) Rs 4 lakh, c) Rs 2 lakh d) Rs 1
lakh*
144) Which of the following statement is correct regarding Opening of an account (other than time
deposit) with a Banking Company:
a) PAN Card is compulsory for all the new accounts that are being opened with the banking company.
b) In case of opening of Basic Saving Bank Account there is no requirement of PAN Card.
c) Co-operatives banks also need to comply with the guidelines on Pan.
d) All of the above*
145) As per the revised guidelines, for installation of telephone / cellphone connections, the PAN Card
is : a) Mandatory b) Discontinued*, c) Varies from State to State. d) None of above
146) In case of Hotel / restaurant bill(s), the PAN Card is required if the cash payment on account of
the bill is exceeding Rs. _____: a) Rs 30,000 b) Rs 40,000 c) Rs 50,000* d) Rs 60,000
147) In case of cash purchase of bank Drafts / Pay orders / Banker’s cheque, the PAN Card is
mandatory if the amount aggregating exceeds Rs. _______ in a day: a) Rs 25,000 b) Rs 50,000*
c) Rs 60,000 d) Rs 80,000


148) In case of Cash deposits with the Banking Company exceeding Rs. _____ in a day, then the PAN
Card is compulsory: a) Rs 50,000* b) Rs 30,000 c) Rs 25,000 d) Rs 40,000
149) PAN Card is mandatory if the cash payment in connection with foreign travel for fare, payment to
travel agent, purchase of foreign currency is exceeding Rs. _______ at any one time:-
a) 20,000 b) 50,000* c) 1,00,000 d) 5,00,000
150) In case of Mutual funds unit transactions, the PAN Card is compulsory if the payment for
purchase of mutual funds units exceeds Rs. _______: a) Rs 35,000 b) Rs 50,000* c) Rs 45,000 d)
Rs 60,000
151) Which of the following statement is true regarding purchase/sale of Shares, Debentures, RBO
bonds w.r.t PAN Card:
a) PAN Card is required if the purchase/sale of shares is exceeding Rs. 1 lac per transaction.
b) PAN Card is required if a person opens a demat account.
c) PAN is mandatory in case of purchase of debentures/bonds, RBI bnds is exceeding Rs. 50,000/
d) All of above*
152) PAN Card is compulsory if the payment of the premium is exceeding Rs. _______ in a year:
a) Rs 20,000 b) Rs 30,000, c) Rs 45,000 d) Rs 50,000*
153) In case of Purchase or sales of goods and services, including jewellery/bullion PAN Card is
mandatory if the purchase/sale of any goods and services is exceeding Rs. _____ per transaction:
a) Rs 50,000 b) Rs 1 lakh, c) Rs 2 lakh* d) Rs 2.5 lakh
154) In case of Cash cards/Prepaid instruments issued under Payment and Settlement Act, PAN Card is
mandatory if the cash payment aggregating is more than ____ in a year:
a) Rs 30,000 b) Rs 40,000, c) Rs 50,000* d) Rs 60,000
155) The Reserve Bank in its Fourth Bi-monthly Monetary Policy Statement, 2015-16, announced on
Sept. 29, 2015, decided to reduce the policy Repo rate under the liquidity adjustment facility (LAF) by
50 basis points and now it stands at _______: a) 6.00% b) 6.25 % c) 6.75%* d) 7.00%
156) The RBI has decided to continue to provide liquidity under overnight
repos at 0.25 per cent of bank-wise NDTL at the LAF repo rate and liquidity
under 14-day term repos as well as longer term repos of up to 0.75 per cent of NDTL of the banking
system through auctions and continue with daily variable rate repos and reverse repos to smooth
liquidity.
a) 0.25 %, 0.50 % b) 0.25%, 0.75 %*, c) 0.5%; 0.75% d) None of these
157) Consequent to the changes in the Repo rate, the Reverse Repo rate under the LAF stands
adjusted to ______, and the marginal standing facility (MSF) rate and the Bank Rate to _____. a)
5.75 %; 7.75%* b) 4.75 %; 6.75 %, c) 4.50%; 6.50% d) 5.50%; 7.50%
158) rates on shortfall in reserve requirements, which are specifically linked to the Bank Rate stand
revised. Effective rate from 29th Oct 2013, the penal interest is Bank Rate plus _____ percentage
points or Bank Rate plus ____ percentage points depending upon the duration of the shortfalls. a)
1.0; 3.0 b) 3.2; 5.1 c) 3.0; 5.0* d) 2.5; 5
159) Government of India has approved the extension of the Interest Subvention Scheme for the year
2015-16 for short term crop loans. Interest subvention @ _____% per annum will be made
available to the Public Sector Banks and the Private Sector Scheduled Commercial Banks (in respect
of loans given by their rural and semi-urban branches) on their own funds used for short-term crop
loans up to Rs.______ lac per farmer provided the lending institutions make available short term
credit at the ground level at ____ % per annum to the farmers. a) 2 ; 3; 7* b) 3; 4; 7 c) 3
; 5 ; 7 d) 3; 4; 8
160) The Interest Subvention of _______ will be calculated on the crop loan amount from the date of its
disbursement / drawal up to the date of actual repayment of the crop loan by the farmer or up to
the due date of the loan fixed by the banks whichever is earlier, subject to a maximum period of one
year. a) 1% b) 2 %* c) 4% d) 8%
161) Additional interest subvention @ _____% per annum will be available to the farmers repaying the
loan promptly from the date of disbursement of the crop loan up to the actual date of repayment or
up to the due date fixed by the bank for repayment of crop loan, whichever is earlier, subject to a
maximum period of one year from the date of disbursement. This also implies that the farmers
paying promptly would get short term crop loans @ _____% per annum during the year 2015-16.
This benefit would not accrue to those farmers who repay after one year of availing of such loans.
a) 3; 4* b) 4; 6 c) 5; 8 d) 7 ; 10
162) In order to discourage distress sale by farmers and to encourage them to store their produce in
warehouses against warehouse receipts, the benefit of interest subvention will be available to small
and marginal farmers having Kisan Credit Card for a further period of up to ______ months postharvest
on the same rate as available to crop loan against negotiable warehouse receipt for keeping
their produce in warehouses. a) three b) five c) six* d) eight
163) To provide relief to farmers affected by natural calamities, the interest subvention of 2% for

short term crop loans will continue to be available to banks for the ______ on the restructured amount.
Such restructured loans may attract normal rate of interest from the second year onwards as per the
policy laid down by the RBI.
a) 3 months b) 6 months c) 9 months d) first year*
164) In respect of 2% interest subvention for short term crop loans, banks are required to submit their
claims on a
of which, the latter needs to be accompanied by the Statutory Auditor's certificate certifying the
claims for subvention for the entire year ended March 31, 2016 as true and correct.
a) Quarterly basis b) Half-yearly basis*, c) Yearly basis d) None of the above
165) is essentially a management process integral to the establishment of sound internal accounting
functions and effective controls and setting the tone for a vigilant internal audit to preclude the
incidence of serious errors and fraudulent manipulations.
a) Concurrent* b) Separate c) Monthly d) Quarterly
166) Which of the following statement is correct with respect to modified provisions of
Concurrent Audit?
a) New areas posing risk and Non-branch units may be brought under the purview of concurrent audit
and the branches with high risk are to be subjected to concurrent audit irrespective of their business
size.
b) All specialised branches viz., agriculture, small and medium enterprises(SME), corporate,
retail assets, portfolio management, treasury, forex, back office, etc., may be covered under
concurrent audit.
c) Certain areas where risk has reduced on account of computerisation, implementation of core
banking system may be excluded from the purview of concurrent audit.
d) All of the above *
167) Concurrent audit at branches should cover at least __ % of the advances and ____ per cent of
deposits of a bank.
a) 50,50* b) 40,60 c) 30,70 d) 60,40
168) Concurrent Audit should be conducted in:
a) Branches rated as high risk or above in the last Risk Based Internal Audit or serious deficiencies
found in Internal Audit;
b) All specialised branches like large corporate, mid corporate, exceptionally large/very large branches
(ELBs/VLBs), SME;
c) All centralised processing units like Loan Processing Units (LPUs), service branches, centralised a/c
opening divisions, etc.
d) Any specialised activities, such as, wealth management, portfolio management services, card
products division, etc., data centres, treasury / branches handling foreign exchange business,
investment banking, etc. and bigger overseas branches, critical head office departments.
e) Any other branches or departments where, in the opinion of the bank, concurrent audit is desirable.
f) All of these *
169) The Reserve Bank has set up _______ to collect, store, and disseminate data on all borrowers’
credit exposures.
a) Central Repository of Information on Large Credits (CRILC)*, AMFI c) ICRA d) ICAI
170) Out of the following which points determine the scope of Concurrent Audit?
a) To supplement the efforts of the bank in carrying out simultaneous internal check of the transactions
and other verifications and compliance with the procedures laid down.
b) To cover certain fraud - prone areas, such as, handling of cash, deposits, advances, foreign
exchange business, off-balance sheet items, credit-card business, internet banking, etc.
c) To keep a check on high-risk transactions having large financial implications as opposed to
transactions involving small amounts.
d) Areas, where the Reserve Bank has specifically advised the banks to be covered under concurrent
audit, may also be part of the checklist of the concurrent auditor.
e) All of the above*
171) The option to consider whether concurrent audit should be done by bank’s own staff or external
auditors (which may include retired staff of its own bank) is left to the discretion of individual banks.
Appointment of an external audit firm may be initially for one year and extended upto ____ years, after
which an auditor could be shifted to another branch subject to satisfactory performance. a) 2 years
b) 3 years* c) 4 years d) 5 years
172) If external firms are appointed and any serious acts of omission or commission are noticed in
their working, their appointments may be cancelled and the fact may be reported to:- a) RBI b)
ICAI, Bank’s Audit Committee of the Board of Directors (ACB), c) All of These e) Only a and b*
173) The Reserve Bank has further advised banks to review the present system of concurrent audit

immediately and incorporate necessary changes therein. The modified concurrent audit system of the
bank should then be placed before the .
a) ICAIb) Audit Committee of Board of Directors (ACB)*, c) Shareholders d) None of these
174) The Reserve Bank has advised Scheduled Commercial Banks (excluding regional rural banks) to
make use of the information available in Central Repository of Information on Large Credits (CRILC) and
not limit their due diligence to seeking no-objection certificate (NOC) from the bank with whom the
customer is supposed to be enjoying the credit facilities as per the declaration. Further banks may also
seek ‘No Objection Certificate’ from the ____ bank where the initial deposit to current account is made
by way of a _____ a) Drawee, Cheque* b) Drawer, Cash, c) Drawer, Cheque d) Drawee, Cash.
175) The Reserve Bank has advised that banks which have capital to risk weighted assets ratio (CRAR)
of 10 per cent or more and have also made net profit as of March 31 of the previous year need not
approach the Reserve Bank for prior approval for equity investments in cases where after such
investment, the holding of the bank remains less than 10 per cent of the investee company’s paid up
capital, and the holding of the bank, along with its subsidiaries or joint ventures or entities continues to
remain less than ____ per cent of the investee company’s paid up capital. a) 10 % b) 12.5 % c)
15% d) 20 %*
176) In order to streamline the existing processes and to obviate the need to approach the Reserve
Bank on case-tocase basis, the Reserve Bank has permitted commercial banks to grant loans and
advances to the
without seeking prior approval of the Reserve bank.
a) Chief Executive Officer / Whole Time Directors*, b) Chief Executive Officers / Managing Director,
c) Chief Financial Officer/ Managing Director, d) Chief Operating Officer / Whole Time Director
168) Which of the following category of loans can be granted to these officials:
a) Loan for purchasing of car, b) Loan for purchasing of personal computer, furniture, c) Loan for
constructing / acquiring a house for personal use., d) Festival advance and credit limit under
credit card facility, e) All of these*
179) Which of the following statements is true with regards to loans and advances to these officials?
a) The loans and advances should form part of the compensation / remuneration policy approved by
the Board of Directors or any committee of the Board to which powers have been delegated or the
Appointments Committee, as the case may be.*
b) Guidelines on Base Rate will be applicable on the interest charged on such loans.
c) The interest rate charged on such loans can be lower than the rate charged on loans to the bank’s
own employees. d)Other loan can also be sanctioned to Directors.
180) The Reserve Bank is issuing Banknotes in Mahatma Gandhi Series 2005 with a new numbering
pattern and special features for the visually impaired in ____, ____ and ______ denominations. a) 10,
50,100 b) 100, 500 and 1000 *, c) 50,100 and 500 d) 10, 500 and 1000
181) In the new Banknotes in Mahatma Gandhi Series 2005, in the numbering pattern, the numerals
in both the number panels of these denominations ____ in size from left to right, while the first ____
alphanumeric characters (prefix) remain constant in size. a) Ascend, 3* b) Descend, 3 c)
Ascend, 4 d) Descend, 4
182) With regards to special features for the visually impaired, in order to make it easier for them to
identify banknotes, the size of the identification mark in these denominations has been increased by
_____. a) 25% b) 50 %* c) 75 % d) 85%
183) The structure of Angular bleed lines in Banknotes in Mahatma Gandhi Series 2005 has been
introduced as
in 3 blocks in Rs. 500 & ____ lines in 4 blocks in Rs.1000 denominations. a) 1, 2, 3 b) 2,3,4
c) 3,4,5 d) 4,5,6*
184) The Reserve Bank has reviewed the procedure for detection of counterfeit notes in consultation
with the Government. Which of these points are true regarding these guidelines?
a) Banknotes tendered over the counter or received directly at the back office / currency chest through
bulk tenders should be examined for authenticity through machines and such of these determined
as a counterfeit one, shall be stamped as “COUNTERFEIT NOTE” and impounded.
b) When a banknote tendered at the counter of a bank branch or treasury is found to be counterfeit, an
acknowledgement receipt in the prescribed format must be issued to the tenderer, after stamping
the note.
c) No credit to customer’s account is to be given for counterfeit notes, if any, in the tender received
over the counter or at the
back-office / currency chest. d) All of these*
185) Customer charges, if any, levied on cash withdrawals shall not exceed ______ per cent of the
transaction amount at all centres irrespective of the limit of Rs.1000 / Rs.2000. a) 1 %* b)

186) The instructions on compensation to banks of the notional value of counterfeit notes detected and
reported and the system of lodging claims for compensation by Forged Note Vigilance Cell of banks
stand withdrawn and a penalty at__ of the notional value of counterfeit notes, in addition to__the
recovery of loss to the extent of the notional value of such notes, will be imposed. a) 40 % b)
60 % c) 80 % d) 100 %*
187) The Reserve Bank has reviewed and enhanced the limit for cash withdrawal at Point of Sale (POS -
for debit cards and open system prepaid cards issued by banks in India) from Rs.1000 to ________
per day in Tier III to VI centres.
a) Rs. 1500 b) Rs.2000* c) Rs. 2,500 d) Rs. 3000
188) The RBI has decided to pay agency commission to authorised banks for handling the work relating
to the Kisan Vikas Patra (KVP), 2014, Sukanya Samriddhi Account*
a) Kisan Vikas Patra (KVP), 2014, Atal Pension Yojana
b) Pradhan Mantri Jan Dhan Yojana & Atal Pension Yojana
c) PM Jeevan Jyoti Bima Yojana & PM Suraksha Bima Yojana
189) As part of the endeavour to smoothen the liquidity management operations, the Reserve Bank
has introduced STP in fixed rate Liquidity Adjustment Facility (LAF) Repo, fixed rate LAF Reverse Repo
and Marginal Standing Facility (MSF) operations. What does STP stand for? a) Short Term Processing
b) Straight Through Processing* c) Structured Total Processing d) None of these
190) Which of the following statement is correct with respect to the implementation of STP?
a) It will enable eligible participants to receive the credit or debit immediately on placement of the bids
or offers, subject to the availability of collateral or funds, within prescribed time window.
b) Through STP, Eligible participants can, as hitherto, place
multiple bids/offers in the respective liquidity facilities.
c) Settlement of the transaction will be automatic and immediate after the placement of the bid/offer.
The transactions undertaken by a participant will be final and request for cancellation of bids or
offers will not be entertained.
d) The automation of these facilities will, in no way, affect the discretionary character of these facilities
and the Reserve Bank will continue to determine the extent of liquidity injection / absorption
depending upon the prevailing liquidity conditions in
the system. e) All of these*.
191) The Reserve Bank has now allowed commercial banks (excluding regional rural banks and local
area banks) to slot their excess statutory liquidity ratio (SLR) securities and marginal standing facility
(MSF) eligible securities under the ______ bucket.
a) Day 1* b) 2-7 Days c) 8-14 Daysd) 15-28 Days
192) On a review, the Reserve Bank advised all scheduled commercial banks (excluding regional rural
banks) that a rate____ to the actual interest rate charged to the borrower before restructuring may be
used to discount the future cash flows for the purpose of determining the diminution in fair value of
loans on restructuring.
a) Less than b) Greater than, c) Equal to* d) None of these,
193) The existing overnight benchmark interbank rate in India is replaced from July 22, 2015 by a new
benchmark called the .
a) Financial Benchmarks India Private Ltd Overnight Mumbai Interbank Outright Rate (FBIL-Overnight
MIBOR)* b) LIBOR c) MIBOR d) None of these
194) The FBIL-Overnight MIBOR will be based on actual traded rates and will be administered by a
new company called the Financial Benchmarks India Private Ltd (FBIL). The existing rate called the
Overnight MIBID/MIBOR based on polled rates is set by . a) FIMMDA-BSE b) FIMMDA-NSE*, c)
FIMMDA-OTC d) FIMMDA-SHCIL
195) Financial Benchmarks India Private Ltd (FBIL) has been jointly formed as an independent
company for administration of benchmarks in financial markets by the which of the following
institutions?
a) Fixed Income Money Market and Derivative Association of India (FIMMDA)
b) Foreign Exchange Dealers’ Association of India (FEDAI)
c) Indian Banks’ Association (IBA) d) All of these*
196) To facilitate greater level of participation in Corporate Bonds by Stand alone Primary Dealers
(SPDs), the Reserve Bank has increased exposure ceiling limits in respect of single borrower/
counterparty from 25 per cent to _____ of latest audited Net Owned Funds (NOF) and in respect of
group borrower from 40% to of the latest audited NOF
only for investments in AAA rated corporate bonds. a) 50%; 65%* b) 40%; 50% c) 45%;55% d)
40%;60%
197) The Gold Monetisation Scheme, 2015 will replace the existing . However, the deposits

outstanding under
the Gold Deposit Scheme will be allowed to run till maturity unless the depositors prematurely
withdraw them.
a) Gold Deposit Scheme, 1995, b) Gold Deposit Scheme, 1999*, c) Sovereign Gold Bond Scheme,
d) None of these
198) Which of the following are eligible to make deposits under Gold Monetization Scheme?
a) Resident Indians & HUF, b) Trusts including Mutual Funds / Exchange Traded Funds registered
under SEBI (Mutual Fund) Regulations, c) Companies. d) All of these*
199) The minimum deposit at any one time shall be raw gold (bars, coins, jewellery excluding stones
and other metals) equivalent to grams of gold of 995 fineness. a) 10 gm b) 20 gm c) 30 gm*
d) 40 gm
200) The maximum limit for deposit under the Gold Monetization Scheme is _______:- a) Rs. 1 lac
b) Rs. 5 lac c) Rs. 10 lac d) No limit*