MSME recollected 01.12.2018

Msme recollected 01.12.2018
Smera, itcot, stages of msme, duration for sanction upto 25 lakhs, duration for sanction upto 50 lakhs, duration for disbursement after sanction upto 50 lakhs, unido, working capital sum, ratio sum, stages of cluster, credit rating agencies, composite loan limit, msmed act in which year, sarfaesi in which year, ots, sum on provisioning, question on Cambridge something, Fiwe, wto, dscr, asset turnover ratio, working capital turnover ratio, diffusion effect of technology change, questions of market strategy, women entrepreneurs , minimum and maximum directors of public and private ltd company, shareholders, limited liability partnership, minor partner, deferred payment guarantee, performance guarantee, red clause lc, back to back lc.

Current Affairs on 1st December 2018

Today's Headlines from www:

*Economic Times*

📝 Government breaches full-year fiscal deficit target at October-end

📝 Forex reserves drop by $24.02 billion to $400.52 billion in April-September

📝 Tata Steel works on strategy to raise share of value added steels to 30%

📝 Government plans to set up NBFC with Rs 2,000 cr to fund food processing firms

📝 IDFC Bank to seek shareholders' nod next month for name change

📝 Tech Mahindra launches new business unit for video services in 5G

📝 GEECL to invest $2 bn to exploit shale gas reserves

*Business Standard*

📝 Govt nudges telcos, airlines to raise rates, shun bitter price wars

📝 NBFCs remain fastest-growing sector for deployment of bank credit: RBI

📝 Govt puts curbs on gold dore imports, places it under restricted category

📝 LIC pays govt Rs 24 billion as dividend from its Rs 48-billion surplus

📝 BSE to launch bidding platform for retail investor in G-secs, T-bills

📝 FPIs invested Rs 109.25 bn in equity, debt in November

📝 US, Canada, Mexico sign trade deal to replace NAFTA after bickering

*Financial Express*

📝 SoftBank sets $21-billion IPO, skipping price range

📝 Healthcare takes centre-stage in policy narrative: Niti Aayog

📝 India’s Q2 GDP growth slows down to 7.1%; massive fall from 8.2% in June quarter but still beats China

📝 Government extends deadline for filing TDS returns for Oct-Dec to Jan 2019

📝 US proposes changes to H1B visas; to be given to most skilled, highest paid foreign workers

📝 Dalmia Bharat Cement develops new chemically modified cement

📝 Centre, states apportion Rs 33,000 crore IGST in November

📝 Pizza Hut plans to open over 200 outlets in India by 2022

*Mint*

📝 UrbanClap raises $50 million in funding led by Steadview, Vy Capital

📝 UIDAI asks banks not to discontinue Aadhaar payment system

📝 Govt seeks inter-ministerial consultation on draft data protection bill

📝 Core sector growth slows to 4.8% in October

📝 Anil Ambani clears legal hurdle to sell telecom assets to Reliance Jio

📝 Subsidised LPG price cut by ₹6.5, non-subsidised by ₹133

📝 Cairn to partner US oil services consortia to develop Indian blocks.

CAIIB ABM Strategy

CAIIB ABM Strategy

ABM is one of the compulsory subjects for CAIIB. Most of the people find difficult to clear this paper. Today, I will tell you how to study for ABM subject.

This subject also contains 4 modules

MODULE – A: Economic Analysis

MODULE – B : Business Mathematics

MODULE – C : HRM in banks

MODULE – D : Credit Management

As we are bank employees we get very less time for study, so how to decide which topics to be read, which topics to be skipped?

-As I had told you in my previous blog article that generally paper consists of 60% theoretical & 40% numerical or case studies, so choose the module to be study in deep so as to clear the paper easily depending upon your personal strength and weakness.

If you observed all the modules, you will realize that Module A and Module C are most scoring modules. Do not skip these modules. Module B contains Business Mathematics which many people find difficult to study as the level of mathematics is tough, especially for non-engineering background people. Those who works in Credit/Loan Department will find that Module D easy as well as interesting. Module D is most important not only exam point of view but also for your daily working in Credit Department. So do not skip Module D.

IMPORTANT TOPICS FROM EACH MODULE

Module A- Supply and Demand, Money Supply and Inflation, Business Cycles, GDP Concepts and Union Budget.

No need to read McMillan Book line by line for thise module, short notes will be quite useful for studying this module. Don’t read stats given in these chapters. In GDP Concepts and Union Budget chapters numerical are asked which are quite easy provided you know the components and formula.

Module B-Time Value of Money, Sampling Methods, Simulation, Bond Investment

Don’t go to deep for study this module as mathematical calculations are difficult to understand especially for non engineering background people. Practice the examples given in McMillan. Those who are not good at math can skip this module and focus more on remaining modules.

Module C-Development of Human Resources, Human Implications of Organisations, Performamce Management, HR & IT

You need to read thoroughly all the topics from this module from McMillan. It is quite easy and theoretical only. Repeatedly read MCQs from N.S. Toor book of this module.

Module D-Overview of Credit Management, Analysis of Financial Statement, Working Capital Finance, Credit Control and Monitoring, Rehabilitation and Recovery.

Read this module from McMillan book only. The chapters in this module are not lengthy as compared to other modules. Practice Numerical from Financial statement and balance sheet.

Overall, you have to study at least three modules in detail so as to achieve the 50 score. You can choose the modules to study more depending upon your strength. I would suggest that you can keep module B at last, just read formulas from this module, as this module is quite boring, lengthy and hard to understand.

https://iibfadda.blogspot.com/

CAIIB exams All the best

CAIIB:

Good Evening All,

This is the time for CAIIB exams ..only one day left for caiib ABM.

How to handle the exam.

1st remember for CAIIB exams each and every question CARRIES 1 MARK .. SO 100 questions 100 MARKS..NOT LIKE JAIIB 120 QUESTIONS.

so 100Q= 100 marks.

Try to get lead marks in 1st paper itself, to reduce tesion/pressure for other subjects.

Reach early to the exam center.

If possible take leave and prepare well.

Try to be cool in exam center , dont compare with others.

Usefully exam will be tough but remember you can handle nicely by applying commonsense also.

if you dont know the answer use filter option in answers.

REMEMBER either theory/ numerical /case studies each question carries one mark.. try to complete easy/known Q&A in one short , next round go for numericals/case studies.

All the best

Most important KYC aml terms

Account Monitoring Order
In the United Kingdom and several other countries, an order
from a government authority requiring a financial institution
to provide transaction information on a suspect account for a
specified time period.

Affidavit
A written statement given under oath before an officer of
the court, notary public, or other authorized person. It is
commonly used as the factual basis for an application for a
search, arrest or seizure warrant.

Alternative Remittance System (ARS)
Underground banking or informal value transfer systems.
Often associated with ethnic groups from the Middle East,
Africa or Asia, and commonly involves the transfer of values
among countries outside of the formal banking system. The
remittance entity can be an ordinary shop selling goods that
has an arrangement with a correspondent business in another
country. There is usually no physical movement of currency
and a lack of formality with regard to verification and recordkeeping.
The money transfer takes place by coded information
that is passed through chits, couriers, letters or faxes, followed
by telephone confirmations. Almost any document that carries
an identifiable number can be used by the receiver to pick up
the values in the other country. The systems are referred to
by different names depending upon the country: Hawala (an
Arabic word meaning “change” or “transform”), Hundi (a Hindi
word meaning “collect”), Chiti banking (referring to the way the
system operates), Chop Shop banking (China), and Poey Kuan
(Thailand).



Anti-Money Laundering Program
The system designed to assist institutions in their fight against
money laundering and terrorist financing. In many jurisdictions,
government regulations require financial institutions, including
banks, securities dealers and money services businesses,
to establish such programs. At a minimum, the anti-money
laundering program should include:
1. Written internal policies, procedures and controls;
2. A designated AML compliance officer;
3. On-going employee training; and
4. Independent review to test the program.



Bank Draft
Vulnerable to money laundering because it represents a
reputable international monetary instrument drawn on a
reputable institution, and is often made payable—in cash—
upon presentation and at the issuing institution’s account in
another country.

Bank for International Settlements (BIS)
An international organization that serves as a bank for central
banks and which fosters international monetary and financial
cooperation with the purpose of attaining stability in the world
economy. It hosts the Secretariat of the Basel Committee on
Banking Supervision. The Committee has formulated broad
supervisory standards and guidelines on Know Your Customer
issues. See www.bis.org.


Bank Secrecy
Refers to laws and regulations in countries that prohibit
banks from disclosing information about an account—or even
revealing its existence—without the consent of the account
holder. Impedes the flow of information across national borders
among financial institutions and their supervisors. One of
FATF’s 40 Recommendations states that countries should
ensure that secrecy laws do not inhibit the implementation of
the FATF Recommendations.

Bank Secrecy Act (BSA)
The primary U.S. anti-money laundering regulatory statute
(Title 31, U.S. Code Sections 5311-5355) enacted in 1970 and
most notably amended by the USA Patriot Act in 2001. Among
other measures, it imposes money laundering controls on
financial institutions and many other businesses, including the
requirement to report and to keep records of various financial
transactions.

Bank Secrecy Act (BSA) Compliance Program
A program that U.S.-based financial institutions—as defined by
the Bank Secrecy Act—are required to establish and implement
in order to control money laundering and related financial
crimes. The program’s components include at a minimum: the
development of internal policies, procedures and controls; the
designation of a compliance officer; ongoing employee training;
and an independent audit function to test the program.

Bare Trust

Also known as a dry, formal, naked, passive, or simple trust, in
which the trustees have no duties other than to convey the trust
property to beneficiaries when called upon to do so. Bare trusts
are vulnerable


Basel Committee on Banking Supervision (Basel Committee)
The Basel Committee was established by the G-10’s central
bank of governors in 1974 to promote sound supervisory
standards worldwide. Its secretariat is appointed by the Bank
for International Settlements in Basel, Switzerland. It has
issued, among others, papers on customer due diligence for
banks, consolidated KYC risk management, transparency in
payment messages, due diligence and transparency regarding
cover payment messages related to cross-border wire
transfers, and sharing of financial records among jurisdictions
in connection with the fight against terrorist financing. See
www.bis.org/bcbs.

Batch Processing
A type of data processing and data communications
transmission in which related transactions are grouped together
and transmitted for processing, usually by the same computer
and under the same application.

Batch Transfer
Transfer comprising a number of individual wire transfers that
are sent to the same financial institution, and which may be
ultimately intended for different persons.



Benami Account
Also called a nominee account. Held by one person or entity on
behalf of another or others, Benami accounts are associated
with the hawala underground banking system of the Indian
subcontinent. A person in one jurisdiction seeking to move
funds through a hawaladar to another jurisdiction may use a
Benami account or Benami transaction to disguise his/her true
identity or the identity of the recipient of the funds.

Beneficial Owner
The natural person who ultimately owns or controls an account
through which a transaction is being conducted. It also
incorporates those persons who exercise ultimate effective
control over a legal person or arrangement.

Beneficiary
All trusts (other than charitable or statutory-permitted noncharitable
trusts) must have beneficiaries, which may include
the settlor. Trusts must also include a maximum time frame,
known as the “perpetuity period,” which normally extends up
to 100 years. While trusts must always have some ultimately
ascertainable beneficiary, they may have no defined existing
beneficiaries. Trusts may only have objects of a power until
some person becomes entitled as beneficiary to income
or capital on the expiry of a defined period, known as the
“accumulation period.” The latter period is normally coextensive
with the trust perpetuity period, which is usually
referred to in the trust deed as the “trust period.”

Bureau de Change
Also called “casa de cambio” or “exchange office,” a bureau
de change offers a range of services that are attractive to
money launderers: currency exchange and consolidation of
small denomination bank notes into larger ones; exchange of
financial instruments such as travelers checks, money orders
and personal checks; and telegraphic transfer facilities. In some
countries, such businesses are not as heavily scrutinized for
money laundering as are traditional financial institutions. Also,
their customers are often occasional, making it more difficult for
these businesses to “know their customers.”


Caribbean Financial Action Task Force (CFATF)
A FATF-style regional body comprising Caribbean states,
including Aruba, the Bahamas, the British Virgin Islands, the
Cayman Islands and Jamaica. See www.cfatf.org.


Clearing Account
Also called an “omnibus” or “concentration account.” Held by a
financial institution in its name, a clearing account is used
primarily for internal administrative or bank-to-bank transactions
in which funds are transmitted and commingled without
personally identifying the originators. The USA Patriot Act
prohibits the use of such accounts for customer transactions.

Collection Accounts
Immigrants from foreign countries deposit many small amounts
of currency into one account where they reside, and the
collected sum is transferred to an account in their home country
without documentation of the sources of the funds. Certain
ethnic groups from Asia or Africa may use collection accounts
to launder money.

Impossible trinity

The impossible trinity (also known as the trilemma) is a concept in international economics which states that it is impossible to have all three of the following at the same time:

a fixed foreign exchange rate

free capital movement (absence of capital controls)

an independent monetary policy

It is both a hypothesis based on the uncovered interest rate parity condition, and a finding from empirical studies where governments that have tried to simultaneously pursue all three goals have failed.

According to the impossible trinity, a central bank can only pursue two of the above-mentioned three policies simultaneously. To see why, consider this example:

Assume that world interest rate is at 5%. If the home central bank tries to set domestic interest rate at a rate lower than 5%, for example at 2%, there will be a depreciation pressure on the home currency, because investors would want to sell their low yielding domestic currency and buy higher yielding foreign currency. If the central bank also wants to have free capital flows, the only way the central bank could prevent depreciation of the home currency is to sell its foreign currency reserves. Since foreign currency reserves of a central bank are limited, once the reserves are depleted, the domestic currency will depreciate.

Hence, all three of the policy objectives mentioned above cannot be pursued simultaneously. A central bank has to forgo one of the three objectives. Therefore, a central bank has three policy combination options.

In terms of the diagram above (Oxelheim, 1990), the options are:

Option (a): A stable exchange rate and free capital flows (but not an independent monetary policy because setting a domestic interest rate that is different from the world interest rate would undermine a stable exchange rate due to appreciation or depreciation pressure on the domestic currency).

Option (b): An independent monetary policy and free capital flows (but not a stable exchange rate).

Option (c): A stable exchange rate and independent monetary policy (but no free capital flows, which would require the use of capital controls).

Currently, Eurozone members have chosen the first option (a) while most other countries have opted for the second one (b). By contrast, Harvard economist Dani Rodrik advocates the use of the third option (c) in his book The Globalization Paradox, emphasising that world GDP grew fastest during the Bretton Woods era when capital controls were accepted in mainstream economics. Rodrik also argues that the expansion of financial globalization and the free movement of capital flows are the reason why economic crises have become more frequent in both developing and advanced economies alike. Rodrik has also developed the "political trilemma of the world economy", where "democracy, national sovereignty and global economic integration are mutually incompatible: we can combine any two of the three, but never have all three simultaneously and in full.".

What is Fin Tech ?

What is Fin Tech ?
The term “Fin Tech” is a contraction of the words “finance” and “technology”. It refers to the technological start-ups
that are emerging to challenge traditional banking and financial players and covers an array of services, from crowd
funding platforms and mobile payment solutions to online portfolio management tools and international money
transfers.
Some of the major FinTech products and services currently used in the market place are Peer to Peer (P2P) lending
platforms, crowd funding, block chain technology, distributed ledgers technology, Big Data, smart contracts, Robo
advisors, E-aggregators, etc. These FinTech products are currently used in international finance, which bring together
the lenders and borrowers, seekers and providers of information, with or without a nodal intermediation agency

What is Block Chain ?

What is Block Chain ?
Block chain is a distributed ledger in which transactions (e.g. involving digital currencies or securities) are stored
as blocks (groups of transactions that are performed around the same point in time) on computers that are
connected to the network. The ledger grows as the chain of blocks increases in size. Each new block of
transactions has to be verified by the network before it can be added to the chain. This means that each
computer connected to the network has full information about the transactions in the network.

advantages and the disadvantages :
Frequently cited benefits of Block chain are its transparency, security and the fact that transactions are logged in
the network.
Some of the disadvantages currently include the lack of coordination and the scalability of this technology. One of
the best-known applications of Block chain technology at the present time is bitcoin. Transactions in this virtual
currency are largely anonymous. This creates ethical risks for financial institutions dealing with users of this
currency, because they are unable to (fully) verify their identity.

Potential applications of Distributed Ledger Technology and Blocked Chain::

Distributed ledger technology is an innovation with potentially broad applications in financial market infrastructures
(FMIs) and in the economy as a whole. Its most common use at present is for digital currencies, but firms are stepping
up their R&D activities for other uses including securities trading, smart contracts, and land and credit registries.
It has also been observed thatmarket participants in other securities markets are exploring the usage of Block chain or
Distributed Database technology to provide various services such as clearing and settlement, trading, etc. Indian
securities market
may also see such developments in near future and, therefore, there is a need to understand the benefits, risks and
challenges such developments may pose.

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


Distributed ledgers Technology (DLT) ::

Distributed ledger technologies (DLT) provide complete and secure transaction records, updated and verified by users,
removing the need for a central authority. These technologies allow for direct peer-to-peer transactions, which might
offer benefits, in terms of efficiency and security, over existing technological solutions. It is an innovation with
potentially broad applications in financial market infrastructures (FMIs) and in the economy as a whole. Its most
common use at present is for digital currencies, but firms are stepping up their R&D activities for other uses including
securities trading, smart contracts, and land and credit registries. If widely adopted, distributed ledger technology can
pose new challenges for regulation

The major benefits are reduced cost; faster settlement time;reduction in counterparty risk; reduced need for
third party intermediation; reduced collateral demand and latency; better fraud prevention; greater resiliency;
simplification of reporting, data collection, and systemic risk monitoring; increased interconnectedness; and
privacy.

CAIIB recollected questions single link

CAIIB ABM TODAY EXAM 55 QUESTIONS RECOLLECTED by Srinivas Kante

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



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



1.Most of the questions from foreign exchange numericals

2. case study on DGAP, Leverage ratio

3. case study on LC

4. Risk weight on Housing loan

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

6. Letter of credit related

7.Capital charge for PR questions

8.Problems on NII

9.YIELD On T BILL

10 .Tier 1 CRAR

11.Call risk

12.NRE ,NRO, FCNR account related

13 Beta factor and basic indicator approach

14.The main object of the LRM loan review mechanism

15.The notional transit period permitted ..

16. One case study on asset liability management

17. Exchange fluctuation risk of ecgc

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

19. case study on TT buying, selling

20. RAROC,Who decide maximum limit of risk

21.Corporate debt instrument characteristics

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

23.residual risk also known as..

24.Elements of common equity Tier 1 cap

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

26. BASEL 3 going concern capital is

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

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

29.Notice money market period is…

30Duration is the elasticity of the bond

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

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

33.Nostro Accounts are – accounts

34.Emp option risk about pre closure

35. Feature of CCB BASEL 3

36.FX clear is a forex dealing sym developed by

37.Features of CRR

38.Calculation of LCR under level1 Asset

39.Cross rate

40.Charactristics of foreign exchange market

41.Temporary Asset--- revaltion not present

42.Calculation of capital for General market risk

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

44. BCBS introduced new approach called..

45.Instrument having lower demand and trading…

46 In india short position allowd..

47.Features of LCR

48.Rapid Growth period bank can make…

49. RAROC,Who decide maximum limit of risk

50. case study on TT buying

51. what does CRR impact

52. no.of key priniciples in Supervising review process

53. Features of CCB in BASEL 3

54..5 marks case study from CALL and PUT option

55.Rupee account Vostro or Mirror?

56. Calculate price for a 270day CP having face value 100/- when yield is 7.57%?

a. 94.6970,a. 94.6770, c. 94.6570, d. 94.6370

57. Calculate yield on a 182 day T bill issued at 97.30/-?

a. 7.57,b. 7.75, c. 5.57, d. 5.75%

58.no.of key priniciples in Supervising review process

59. Features of CCB in BASEL 3

60. 1.yield in tBill

61.rwa

62. Case study o. Nii and nim

63. Case study on rwa and capital charge

64.case study on leverage ratio

65. Case study on lc , advising bank confirming bank etc

66 case study on foreign exchange

67. yield to maturity 02 questions asked

68.call money Nd term money

69. Approach basic indicator approach , advance approach

70. M duration

71. piller 3 ,spr

72. 5 marks case study from CALL and PUT option

73. NII - 5marks

74.CRAR - 5marks

75.FEDAI - 5marks

76.Exchnge rates- 5marks

(USD to INR)

77.Exchange rates - 5marks

(USD - Jap yen - GBpound)

78. Lc - 5 marks

79 DGAP nd Levarage ratio - 5marks

80.5 questions on USD JPY against foreign person returning to India 





CAIIB Retail Recollected 2018 June ::

Recalled questions



Bbps

Case study on hl income tax claim

Fv n pv

Fsi

NFS details

Credit card

Free charge

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

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



 Case study on

BBPS

HL income tax

CKYC

Depriciation

Case study on

Bcsbi 5 que

 Imps,UPI, *99#,mmid

[Credit card 5 que

 Sarfasi,, lokadalak, drt 5 que

Car loan new oold car 5; questions

Housing loan tax benefits 5 que

 Slm , wdv depreciation 3 que

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

[Sub prime loan

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

 Mortgage act

[ RTGS and neft

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

 Product development stages

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



 Demat account can be opened in banks or DPS or brokers

If a bank issue card to customer and 10 lakh insurance cover what type of card bank issue rupay, visa, master, mastro

 If credit card a person purchases for 12000 at 37.20 annually. Per month interest. Per day ,, if he pays within time limit what is the interest charged



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

Ombudsman settlement



Kyc aml



Dispute between banks and reconstruction company securitization


[Back loading emi

 If a person wants to invest in a 10 yrs pention plan plan name?? Pmjsy, pmvvy, Jay,jsy

[Machinery value 1200 lakhs salvage value 300. End of 6 yrs under wdv method 15%

When salvage value become zero



Dep under straight line method

Cumulative depreciation value of 3rd 4th year under wdv





CAIIB HRM Recollected questions


Organic structure organization definition


Definitions for norming and performing (stages of group development)


Questions on six leadership styles (5 questions asked)


Definition of process diagnosis(in bpr implementation)


Identify best practices in change management


Key factors for successful implementatition of change within organization


Chief insecurity of most staff is change itself


Identify steps to successful change propsed by John p kotter


Responsibility charting is foundation for strong delegation


Forecasting activities in human resource planning include


What are two types of knowledge


In RAKID R stands for


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


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


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


Problem on ROI


Definition of ROI


Types of motivation


Definition of motivation


Lowest need in need hierarchy theory


Which of the following is not hygiene factor-recognition


Goal efficiency is effected by- proximity, difficulty and specificity


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


Status is defined as need for social standing and importance


Human resource implications


Augmented learning-learning where learners interact with e learning environment


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


Psychomotor involves what characteristics


Principles of learning - readiness, exercise. Intensity and recency


One question on perception


Adult learning feature identify the wrong one


Definition of functional comptency


External factor effecting demand forecasting


One of the following is not advantage of external recruitment


Question on body language


What are the legislation on working conditions. Identify wrong act


Registering trade union gives then legal status


One of the following is not a social security act






BFM Recollected questions::





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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

ICAAP is related to?

ADR related question

Double forward is called what ?

Related to Nro account

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

Derivatives also lot of questions

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

INCOTERM

IRS

Swap

Risk weightage

Lot of RWAs questions

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

Component of tier 1

Rwa as per Basel III for housing loan based on LTV

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

Estimated occurence of probability

Questions on currency derivatives, forwards, swaps

Forex market characteristics

One question related to embedded option risk

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

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

Crystallization period for export

One question on American and europian option

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

Questions on ADR AND GDR

Questions on option and forward contact, future

Loan To Value Ratio

Risk Weight %

Swap Defination , ADR and INCOTERMS



RWA calculation for operational risk under Standardized approach

DGAP

Conceptual question on FCNR, RFC, NRO, NRE

Operational risk calculation all approaches

Modified duration

Tier 1 n tier 2 numerical

LC based case studies for 5 marks

Basic inducater appoach market risk 5 number

Modified duration of equity5 ques

Calculations of capital adequacy ratio quite a few questions

10 questions at from various risks associated with Treasury operations

Interest rate swap 5 questions

Bill buying 5 questions

EXCHANGE RATE

AAA A BB Rating Chart Questions for Risk Weighted Calculations

Yield Calculation

W RSA,RSL NUMERICAL

RATED BOND NUMERICAL

Yeild of bond numerical

BASIC INDICATOR APPROACH NUMERICAL

BPV

Forex t.bill

Leverage

Forward contact

CRAR

Operational risk

Treasury theoritical

60question theory easy

No ques from volatility and bpv

Call risk problems

packing credit problems

Rsl. Rsa.. Md problems

Leveage ratio related case study

BASEL III Tier 1 Tier 2 capital Minimum equity ratio related

BFM Book page no 415 ICCAP related question

BFM Book page no 443 stock approach related 05 question

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

BFM Book page no 20 - Export Bill 5 marks

BFM Book page no 295 - Estimated level of Operational Risk



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

Case study on RFC account 5 marks

Case study on forex exchange buying commission etc 5marks

Case study on mkdified duration gap 5marks

VAR - 1 QUESTION

TEIR 1 COMPONENT-2 QUESTION

CBLO- 1 QUESTIOn



Case Studies on

1. Cancellation of contract

2. NRE/NRO POA

3. RWA

4. MEAN & SD

5. SLR

6. YTM

7. SHORT LERM & LONG TERM GAP ASSET VS Liabilities

8. NII & NIM

9. Tier1, Tier2

10. Capital adequecy

11. Nostro Vostro Loro

12. Daily volatilty

13. Stop loss limit

14. Operational risk case study

15. Foreign exchange numericals

16. Swap numericals

17. Liquidity case study

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

19. Calculate CET Basel 3

20. Calculate Aadditional tier 1

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

2 to 3 question duration

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

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

5 question on nostro,loro vostro

5 question on FRA

5 question on net interest margin

2-3 question on bonds

3-4 question on LC

some 2-3 sums on bpv

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

1. Rate qoute 1 ques

2.LC partial delivery UCPDC rule

3.FRA 6*9 dates of delivery and maturity

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

5.coupon swaps,forward contracts

6.securitization-SPV or Commercial bank allocation of assets

7.Case study on NII,NIM,EER

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

9.ECGC insurance premium bear by?

10.CHIPS-USA

11.treasury risk management 4-5 ques

12.European put option

13.Authorises person categ 2

14. ques on BOP expansion

15.bank margin calculation from rates

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

17.monthly volatility given-calculate daily volatility

18.modified duration calculation

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

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

21.crystallisation of sight bills 30 days

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

23.standard ECGC policy cover-political risk

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

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

24. volatility can also be measured by?

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

26.VaR related 2 ques theoretical

27.derivatives hedge underlying risks

28.call risk

29.Maturity ladder or baskets case study

30.provision coverage ratio def

31.asset liability mismatch


32. Bond ytm,current yield 2-3 ques



CAIIB RETAIL BANKING PREVIOUS YEARS RECOLLECTED QUESTIONS BY Srinivas Kante


1. Sukanya samridhi yojana

2. Atal pension yojana

3. Basic saving ac - 1 qtn

4. Customer relationship management

5. Full form of CIA

6. one on IMPS

7. future value 2 qtn

8. BCSBI 7 qtn

9. Education loan 5 qtn

10. Who give subsidy on mudra loans?

11. One question on rule 72?

12. Ordinary annuity one question?

13. Product stage

14. Mobile banking limits?

15. Safety esteem self actualization

16. Reliability responsiveness

17. ROC pulling

18. Max limit for prepaid instruments, expiry of prepaid instruments

19. Mudra loan - It is 50000 to 10 lakhs

20. 80c rebate? - Rs. 1.5 lakhs

21. Withdrawal allowed in ATM's?

22. CERSAI is formed under which act?

23. Many questions from retail banking services

24. Reverse mortgage

25. Para banking

26. 80C limit

27. PM fosol bima yojona

28. CTR

29. CERSAI - which act

30. PMSBY - claim amout after losing one eye or one leg or hand

31. PMEGP - implemented through

32. POS

33. EWS_size

34. RML

35. CRM gap-iii between

36. Merchant banking means

37. Closed ended fund

38. APY

39. Advantage and disadvantage of retail banking

40. Limit of cash withdrawn from other bank ATM. Option 5000, 100000, 20000, 2500

How many neft settlements in a day?

Tax benefit in Home loan

Credit card cycle

NEFT/RTGS max n min limit

Basic diff.b/w rtgs n neft

Benefit of pvt. Banking

Wealth mgmt for corporates

Education loan repayment/defaults

EMI

Income tax

Rule 72

Essence of crm

Bharat bill paymnt systm

Priority of charge in mortgage

Brown label atm

Purpose of securitisation

Conditions for pension fund mgmt

Mutual fund conditions for bank

Approval for insurance

Propagate model

7Ps

ATM transactions in metro cities

SARFAESI

DRT

Internet banking

Mobile banking

Internet Banking- strategy adaptation

Depreciation by both methods

Capital gain

Annuity

FSI Calculations

Full form of CDO

Product meaning??

Airline company used which model..SBU..INTEGRATED MODEL???

RUPAY card is issued by NPCI

Case study related to Internet banking 5 questions

Case study related to credit card charges and other

Register mortgage date and deposit of title deed

Implementation model related

WRBR.. Full form??

Date of execution of documents.. 4 months

Augmented product...

Expected product...

Under NEFT, number of settlement on week days are..12

RTGS minimum and maximum amout...

Disadvantages of Retail banking...

Mobile banking maximum amout per txn and monthly threshold related 5 questions

IFSC CODE TOTAL ALPHA..and numerics

SFMS

Question on hni, super hni, ultra hni category..

Wether the cibil report can be given to customer after levying some charge or not..

Whether moratorium is given for second hand car...

Moslow theory : Case study on needs

RTGS : when processing

Education loan : case study about margin

On college fee hostel fee computer fee other expenses..

WDV : Case Study on Depreciation l

Credit Card : Case study on interest , risk , overdue amount....

Valuation of urban land ,agriculture land Method criteria etc.....

NEFT : 12 batches

Super affluent : 50-400 Lakhs

Case study on wdv method

Three questions on rent capitalization method

Case study on maslow hierarchy

Case study on tangibles..assurance..responsivess wale 5 factors

Emi calculation 2 questions

Theory was easy

Sbu 1 question

Horizontally organized model

credit card bill (case study 5 qus.)

Three questions on rent capitalization method

Neft batches - 12 batches

depreciation numerical...

case study on gift card...

Fullform of USP - Unique Selling Proposition

case study on education loan for abroad...

1. 2 Case studies on priority charge on mortgage

2. Problem on depreciation(By WDV)... eg. Wht will be the book value after 3 years?

3. Calculating future value

4. Diff between NEFT and RTGS

5. Questions on DSA

6. Case study on tax exemptions ( both interest and principal repayment)?

7. Prob on Depriciation by straight through method?

8. What does securitisation means?

9. Risk involved with DSA?

10. Questions on Potential product PROPAGATE?

11. EMI Calculation

12. Questions on vertical, horizantal model

13. How Many NEFT settlement on weekdays and saturday

14. How many characters in UTR?

15. Question on WRBR

16. Case study on education loan... all the fig are given ( eg. Hostel fee, tution fee,

other expenses and bank margin).... we have to calculate max permissible bank loan

17. One critical case study on credit card... credit card limt, free int period, int rate, over

limit penalty, due date and purchase date are given... We have to calculate int chraged

a. if the customer pays the amt due after 18 days from due date

b. If he pays half amt before due date then calculate int charged for remaining amt on a

particular date?

C. If the amt cro sses the limit then calculate the amt he has to pay

18. If we allow overdraft in CC a/c and the customer does not repay it, then can we

approach DRT ? There are four options and we have to choose the correct one

How many neft settlements in a day?

Tax benefit in Home loan

Credit card cycle

NEFT/RTGS max n min limit

Basic diff.b/w rtgs n neft

Benefit of pvt. Banking

Wealth mgmt for corporates

Education loan repayment/defaults

EMI

Income tax

Rule 72

Essence of crm

Bharat bill paymnt systm

Priority of charge in mortgage

Brown label atm

Purpose of securitisation

Conditions for pension fund mgmt

Mutual fund conditions for bank

Approval for insurance

Propagate model

7Ps

ATM transactions in metro cities

SARFAESI

DRT

Internet banking

Mobile banking


1. Case study on Prepaid instrument

2. Case study on Depreciation WDV and SLM methods

3. Case study on Bharat Bill Payment System

4. Case study on CERSAI

5. Case study on ekyc

6. Case study on car loan?

7. Case study on 'housing loan for all' by newly launched scheme

8. Case study on Vehicle loan

9. Case study on Credit card billing

10. Case study on Education loan problem

11. Case study on Future value of ordinary annuity

12. Case study on BCSBI - 10 questions (theory based)

13. Case study on Future value of bond/annuity

14. Case study on Maslow Needs

15. Case study on CRM

16. Case study on EMI

17. Case study on Capital gain

18. Case study on Calculate Present value

19. Case study on RML


Question on hni, super hni, ultra hni category..

Wether the cibil report can be given to customer after levying some charge or not..

Whether moratorium is given for second hand car...

Moslow theory : Case study on needs

RTGS : when processing

Education loan : case study about margin

On college fee hostel fee computer fee other expenses..

WDV : Case Study on Depreciation l

Credit Card : Case study on interest , risk , overdue amount....

Valuation of urban land ,agriculture land Method criteria etc.....

NEFT : 12 batches

Super affluent : 50-400 Lakhs

Case study on wdv method

Three questions on rent capitalization method

Case study on maslow hierarchy

Case study on tangibles..assurance..responsivess wale 5 factors

Emi calculation 2 questions

Theory was easy

Sbu 1 question

Horizontally organized model

credit card bill (case study 5 qus.)

Three questions on rent capitalization method

Neft batches - 12 batches

depreciation numerical...

case study on gift card...

Fullform of USP - Unique Selling Proposition

case study on education loan for abroad...

Numericals from book about

Encumberence ratio

Tax saving on HL

Case studies under IBA education loan

Calculation of PV FV

Case study on reliability, tangibility, assurance (customer expectations)

Masala bond

Prepaid instrument

MSME act

Full form of USP

Who heads DRAT?

Sum on WDV and SLM

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

Case study on UPI

AEPS

REVERSE MORTGAGE FOR SENIOR CITIZENS[RLEAC]

problems on straight line

WDV method

Educational loan on foreign study

5q on empathy,responsiveness,assurance

2q on augmented, core product

Reverse mortgage equity linked case study

FSI construction cost based

UPI based

80c/24(b) ICT act 1961 based

Priority sector in different sector with perc of ANBC

PROGATE full form

BBPS component

fraud in operation risk

straight line method

written down value method

encumbrance value

Home loan

Service quality based case study

PPI based case study

Total compound interest applicable

EMI

Present value and future value

Full form of MMID ?

UPI transaction max limit ?

Mobile banking per day and per month limit?

Housing loan % of priority sector?



Margin for RML (Reverse Mortgage Loan) with annuity ?

CAIIB ABM MODULE D 60 MCQs

CAIIB ABM MODULE D 60 MCQs

01. Statutory corporations are controlled by which act for credit management.

a) Indian contract act

b) Company act

c) Act that created them

d) Indian partnership act

e) Indian trust act and public act

Ans: c

02. Which one of the following is not a non fund base credit?

a) Letter of credit

b) Bill discounting

c) Co-acceptance of bills

d) Forward contract

e) Derivatives

Ans: b

03. Mr. Shyam has a house in a rural village, very near to Agra. His house is very old and

required some repairing work. So, Mr. Shyam visited Agra main branch for a loan, how much

amount of loan he can avail from bank under housing finance.

a) 1 lakh

b) 2 Lakh

c) 5 Lakh

d) 10 Lakh

e) 20 Lakh

Ans: a

04. Small enterprises advance and export credit does not financed by both public sector and

PSU (export does not comes under priority sector advance) what percentage of small

enterprises advance and export credit is supposed to be given ___ and ___ respectively.

a) 40 and 32 %

b) 18 and 10%

c) 10 and 12%

d) No target and 12%

e) 10% and no target

Ans: c

05. RBI to free the landing rates of scheduled commercial banks for credit limit over ___.

a) 01 Lakh

b) 02 Lakh

c) 05 lakh

d) 10 Lakh

e) 20 Lakh

Ans: b

06. BPLR system of lending rates replaced by base rate system it was effected from ____.

a) 01 Jun 2010

b) 01 Jul 2011

c) 01 Jan 2010

d) 01 Jul 2010

e) 01 Jul 2003

Ans: d

07. No penal interest should be charged with effect from 10 Oct 2000 to borrower�s loan

under priority sector up to Rs _____.

a) 10000

b) 20000

c) 25000

d) 50000

Ans: c

08. No collateral security is required loan under MSME both manufacturing and production and

providing or rendering of services up to Rs ___.

a) 1 lakh

b) 2 lakh

c) 5 lakh

d) 10 lakh

e) 20 lakh

Ans: C

09. Which accounting standard makes it mandatory for some enterprises to prepare cash Flow

Statement for the accounting period?

a) AS-1

b) AS-3

c) AS-9

d) AS-17

Ans: b

10. Industries & business enterprises whose turnover for the accounting period exceeds Rs.

50 crore has to submit segment-wise reporting as per _____.

a) AS-3

b) AS-7

c) AS-17

d) AS-21

e) AS-22

ANS: C

11. MR. Rohit want to invest some money in XYZ co., he want to purchase some stocks of this

co. How Mr. Rohit can assess to financial statement of the XYZ co.

a) By balance sheet

b) By EPS

c) By financial statement

d) all

Ans: d (EPS- earning per Share)

12. Basic concept used in preparing of financial statements is given below pick up the odd

one.

a) Entity concept

b) Money market concept

c) Going concern concept

d) Dual aspect concept

e) Accrual concept

ANS: b

13. As per company act the maximum period of financial period is 15 months, MR Charles is

GM of ABC co. due to some contingency he is unable to prepare his Financial statement so he

want to extend his financial to another 03 months i.e. 18 months maximum period of financial

statement so MR Charles has to approach to whom for such extension.

a) Income Tex office

b) Reserve bank of India

c) Accountant general of region

d) Registrar of company

Ans: d

14. The companies Act classifies liabilities which shown on the left side of the horizontal form

pick up the odd one.

a) Share capital

b) Reserve & surplus

c) Miscellaneous expenditure

d) Secured & unsecured loans

e) Current liability & provisions

Ans: c

15. Revenue reserve represents accumulated retained earnings from the profits of normal

business operations. These are held in various forms that are given below pick up odd one

___.

a) General reserve

b) Investment allowance reserve

c) Advance payment received

d) Capital redemption reserve

e) Dividend equalization reserve

Ans: c

16. 17. Current liabilities and provisions as per classification under the co. act consist of the

following except one given below.

a) Advance payments received

b) Accrued expenses

c) Pre-paid expenses

d) Unclaimed dividend & dividends

e) Provisions for taxes

f) Gratuity and pensions

Ans: c

17. Which committee has prescribed inventory norms for various industries?

a) Narasimham committee

b) Raghawan committee

c) Tandon committee

d) Chakraborty committee

Ans: c

18. ____ % of small enterprises advances should go to micro enterprises in case of foreign

banks.

a) 20

b) 40

c) 60

d) 80

Ans: c

19. In order to avoid the problem in delay in realization of bills, bank may take advantage of

improved computer/communication network ___.

a) GUI

b) SFMS

c) ETF

d) SWIFT

ANS: b

20. Bank guarantee should normally have a maturity of more than ___.

a) 5 years

b) 10 years

c) 15 years

d) 20 years

e) 25 years

Ans: b

21. The conduct of LC business is governed by����..

a) RBI

b) IRDA

c) UCPDC 600

d) AMFA

e) GOI

Ans: c

22. What should bank do if the owner of the collateral security is someone other than the

borrower?

a) Reject the loan

b) Transfer security to the name of borrower

c) He should become first guarantor of the loan and create charge over the security

d) Security should be hypothecated to the banker

Ans: c

23. What bank should do to avoid asset-liability maturity mismatch that may arise out

extending long tenor to infrastructure projects.

a) Return on investment

b) break- even analysis

c) Liquidity support from IDFC

d) Take-out financing arrangement

e) Sensitivity analysis

Ans: d

24. Frequency of review should vary depending on the magnitude of risk for the average risk

account.

a) 01 month

b) 03 months

c) 06 Months

d) 12 Months

Ans: c

25. In case of company, the charge should be registered with ROC within ___ days from the

date of execution of documents.

a) 15 days

b) 30 days

c) 45 days

d) 2 m

Ans: b

26. What is Priority sector target of Direct & Indirect Agriculture for Domestic banks?

a) 13.5% of ANBC or Off Balance Sheet Items whichever is higher. 4.5% for Indirect Agri.

b) 10% of anbc or 6% for indirect agri

c) 12% of anbc or 4.5% for indirect agri

d) No target

Ans: a (it is 18% in total 13.5 % is direct Ans 4.5% is indirect agric)

27. What are targets and sub-targets of DRI advances?

a) 1% of total outstanding advances of previous year

b) Out of which 40% should go to SC/St

c) 2/3rd must route though Rural and Semi Urban branches

d) All of these

ANS: d

28. What are prudential norms for individuals and Groups as per RBI guidelines? Pick up odd

one.

a) Individuals Groups General 15% of Capital Funds

b) 40% of Capital Funds of borrower group

c) Infrastructure 20% of Capital Funds single borrower

d) 50% of Capital Fund to gp infrastructure project

e) Oil Companies 25% of Capital Funds

f) All correct

ANS: f

29. Monetary and Credit policy is issued by RBI how many times in a year?

a) Monetary Policy is issued annually

b) With quarterly review

c) Credit Policy twice a year

d) All of these

Ans: d

30. RBI has restricted bank to finance against/to _______________.

a) Bank�s own shares

b) Relatives of Directors and Senior Officers

c) Sensitive commodities under selective control measures

d) FDRs of other banks, CDs, Companies for buy back of shares and Industries consuming

Ozone Depleting Substance (ODS)

e) All of these

Ans: e

31. Explain Delivery of credit for WC limits of 10 crore and above.

a) CC component -20% & WCTL component-80%

b) WCTL component-80% & CC Components-20%

c) WCTL components-50% & CC Components-50%

d) CC Components-15% & WCTL components-85%

ANS: a- The proportion is not fixed but is flexible according to requirement of borrower.

32. What are provisioning norms for Standard Assets? Pick up odd one.

a) Direct SME and Direct Agriculture 0.25%

b) Others 0.40%

c) Commercial Real Estate 1%

d) Teaser Housing Loans 2%

e) None of these

Ans: e (It is Classification Rate of provision)

33. In how many years, Foreign banks with 20 branches and above in India need to achieve

PS target of 40%?

a) 2 years

b) 3 years

c) 4 years

d) 5 years

e) 7 years

Ans: d -starting from 1.4.2013 up to 1.4.2018.

34. What is ANBC?

a) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + Investment

in Non-SLR bonds under HTM category + other investments eligible to be treated as PS

b) Bank Credit in India + Investment in Non-SLR bonds under HTM category + other

investments eligible to be treated as PS

c) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + Investment

in Non-SLR bonds under HTM category

d) Bank Credit in India + Bills Rediscounted with RBI/other approved institutions + other

investments eligible to be treated as PS.

Ans: b

(Now amended) as per http://www.rbi.org.in/scripts/NotificationUser.aspx?Id=7460&Mode=0

35. Base Rate is determined in each bank by ___.

a) ALCO

b) BPLR

c) ALM

d) DSCR

e) SFMS

Ans: a (Asset Liability Management Committee)

36. The target given for advances to weaker sections in percentage of ANBC is ___.

a) 10% for domestic banks

b) 12% for foreign banks

c) No target for domestic banks

d) 10% for foreign banks

Ans: a

37. Mark the incorrect statement.

a) No target is given to domestic banks for small enterprise advances

b) No target is given for agriculture advances in for foreign banks

c) Export credit does not form a part of priority sector for domestic banks

d) Export credit does not form a part of priority sector for foreign banks

Ans: d

38. Gain on revaluation of asset is a ____.

a) General reserve

b) Investment allowance reserve

c) Capital reserve

d) Revenue reserve

Ans: c

39. Banks can file a civil suit for recovery of their dues in civil courts. This option is used for

dues ____.

a) Up to 5 lacs

b) Up to 10 lacs

c) Above 10 lacs only

d) Above 20 lacs only

Ans: c

40. What are provisioning norms for NPAs? Classification of assets Provision on Secured

Provision on Unsecured

a) Sub-Standard 15% 25%

b) Doubtful (D1) 25% 100%

c) Doubtful (D2) 40% 100%

d) Doubtful (D3) 100% 100%

e) Loss Assets 100% 100%

f) All correct

Ans: f

41. You are a loan in charge of ABC one of your a/c of personal loan in the name of Mr.

subhash is not paying his dues in time lots of reminder have been send by you for recovery ,

you have approached him for rehabilitation, he has agreed for that. What will be next step?

a) Rescheduling/restructuring

b) Legal action

c) Exit from the account

d) Compromise

e) Write off

Ans: d

42. Lok adalat (peoples� court) at present resoling issue of NPAs, the enhanced limit from

Aug 2004 is ___.

a) 5 lakh

b) 10 lakh

c) 20 lakh

d) 25 lakh

e) 25 lakh above

Ans: 20

43. Banks and FIs for expediting the recovery cases to DRTs (Debt Recovery Tribunals) for

NPAs value in excess of ___.

a) 05 lakh

b) 10 lakh

c) 20 lakh

d) 25 lakh

e) 25 lakh above

Ans: b

44. SARFAESI Act 2002 has been extended to cover co-operative banks by notitification dated

___.

a) 21 June 2002

b) 21 Jul 2002

c) 21 Jul 2010

d) 28 Jan 2003

e) 01 Jan 2003

Ans: d

45. CDR is a ____ mechanism.

a) Statutory

b) Non-statutory

c) Core

d) None of these

Ans: b (Corporate Debt Restructuring)

46. Define Small Business on the basis of annual Turnover?

Ans. Whose Annual turnover is less than 50 crore.

47. How will you define Retail Customers?

Ans. Borrowers with exposure of more than 5.00 crore

48. What is Priority sector target of Direct & Indirect Agriculture for Domestic banks?

Ans. 13.5% of ANBC or Off Balance Sheet Items whichever is higher. 4.5% for Indirect Agri.

49. What are targets and sub-targets of DRI advances?

Ans. 1% of total outstanding advances of previous year. Out of which 40% should go to SC/St

and 2/3rd must route though Rural and Semi Urban branches.

50. Priority Sector Target For Housing Loan

Ans. Housing Loan ----Rs. 25 lac for Metro stations having population 10.00 lac and above. Rs.

15 Lac for other cities.

For Repair-----------up to 2.00 (Rural and SU) and Rs. 5.00 lac (Urban and Metro)

51. Define Small and Marginal farmer.

Ans. Farmers having land up to 1 hector are Marginal Farmers and others having land up to 2

Hector are Small Farmers.

52. Define Micro, Small and medium for manufacturing and service units.

Ans. Investment in Plant and Machinery for Manufacturing Units

Investment in Equipment For Service Units

Micro Up To Rs. 25 lac Up To Rs. 10 lac

Small Up To Rs. 5.00 crore Up to Rs. 2.00 crore

Medium Up To Rs. 10.00 crore Up To Rs. 5.00 crore

53. What are provisioning norms for NPAs?

Classification of assets Provision on Secured Provision on Unsecured

Sub-Standard 15% 25%

Doubtful (D1) 25% 100%

Doubtful (D2) 40% 100%

Doubtful (D3) 100% 100%

Loss Assets 100% 100%

54. What are Prudential norms for individuals and Groups as per RBI guidelines?

Ans. Individuals Groups

General 15% of Capital Funds 40% of Capital Funds

Infrastructure 20% of Capital Funds 50% of Capital Funds

Oil Companies 25% of Capital Funds

55. How much amount of loan can be sanctioned to Agriculture and SME without Collateral?

Ans. Agriculture --------------1.00 lac

SME----------------------10.00 lac

56. Monetary and Credit policy is issued by RBI how many times in a year?

Ans. Monetary Policy is issued annually with quarterly review and credit Policy twice a year.

57. RBI has restricted bank to finance against/to _______________?

Ans.

1. Bank�s own shares

2. Relatives of Directors and Senior Officers.

3. Sensitive commodities under selective contro measures.

4. FDRs of other banks, CDs, Companies for buy back of shares and Industries consuming

Ozone Depleting Substance (ODS)

58. Explain Delivery of credit for WC limits of 10 crore and above.

Ans. CC component --------20%

WCTL component-----80%

The proportion is not fixed but is flexible according to requirement of borrower.

59. What are provisioning norms for Standard Assets?

Ans. Classification Rate of provision

Direct SME and Direct Agriculture 0.25%

Others 0.40%

Commercial Real Estate 1%

Teaser Housing Loans 2%

60. What are PS targets for Micro and Small Enterprises?

Ans. All MSE loans will be treated as PS. But sub-targets within overall MSE loans are as

under:

40% 20% 40%

Manufacturing units

having Investment in Plant and Machinery

Up to Rs. 5.00 lac

Above 5.00 up Rs. 25.00 lac

Above 25.00 lac

Service Units having Investment in Equipment

Up to Rs. 2.00 lac

Above Rs. 10.00 lac

Above Rs. 10.00 lac

61. What are PS targets for Foreign Banks having less than 20 branches in India?

Ans. Total Priority Sector 32% of ANBC or Off Balance Sheet Items (Higher)

Agriculture No specific target but forms part of Total PS

MSE units No specific target but forms part of Total PS

Export No specific target but forms part of Total PS

Weaker sector No specific target but forms part of Total PS

62. In how many years, Foreign banks with 20 branches and above in India need to achieve

PS target of 40%?

Ans. 5 years starting from 1.4.2013 up to 1.4.2018.

63. What are PS targets of weaker sector for Domestic banks and Foreign banks having 20

and above branches in India?

Ans. 10% of ANBC or Off Balance Sheet Items whichever is higher.

64. What is ANBC?

Ans. Bank Credit in India + Bills Rediscounted with RBI/other approved institutions +

Investment in non-SLR bonds under HTM category + other investments eligible to be treated

as PS.

65. Base Rate is determined in each bank by ____.

Ans. Asset Liability Management Committee (ALCO)Top of Form