01. Relaxation in KYC norms is permitted if the depositor undertakes that the balance outstanding in
his account will not be more than and credits in a financial year will not exceed . Rs
50,000; Rs 100,000
02. MinimumMaturity Period for Certificate ofDeposit is : 7 days
03. Why KYC guidelines have been issued by RBI under section 35 A of the Banking Regulation Act:
To prevent Money Laundering -
04. If payment of Rs 20000/- ismade in cash in case of FDR what is the penalty: equal to the amount paid
05. In Senior Citizen Saving Scheme account,who can be joint account holder?:Spouse
06. TDS not deposited in time. What is the interest payable?: _Bank to pay the amount with interest ©
1.5% per month simple.
07. What is the special feature of Basic banking Account? Account can be opened with nil or very
small amount and there are no requirement of minimum balance.
08. Current balance is Rs.6000/-. A cheque of Rs.18,000/- is presented. Branch passed the cheque by allowing
TOD. After few days, fixed deposit of the same party matured and TOD was cleared by crediting the proceeds to CA.
Customer disputes the transaction.Whether bank is having right in doing so? : Normally no without specific request
of the party. However, if bank has a specific clause in the account opening formto allow overdraft in such cases
and customer has consented to such clause, then temporary overdraft can be allowed and recover the same
fromthe account holder even if there is no specific request fromthe party.
09. TDS collected to be deposited with the Income Tax Deptt within: 7th day of succeeding month
during which it is collected.
10. TDS at the rate of 10% is to be deducted at source in case of individuals and HUF„ if the rent payable in a
financial year exceeds : Rs.1,80,000
11. You are maintaining current account in the name of the Trust. You receive notice of death of one of the
trustees. After this notice, a cheque signed by the deceased trustee is presented for payment.What should the bank
do?: Chequemay be paid, if otherwise in order.
12. Quarterly statement for TDS on salary should be submitted on form 24-Q within: 15days of the close of the
quarter
13. Pensioner account can be opened jointly with? Spouse as Either of Survivor or Former or Survivor.
14. Photograph is obtained at the time of opening the a/c. What is the purpose for the same?: for
identification of the prospective customer
15. Amount that can not be paid in cash in respect of term deposit by the bank as per Income Tax rules:
Rs 20,000 and above.
16. Interest rate on Saving Bank is fixed by : Banks themselves w.e.f. 25.10.11
17. A, having SB a/c with you, deposited Rs.25000. A public Prosecutor sent notice to bank informing thatMr
A is involved in forgery and requested not to permit withdrawal in the a/c. In between one cheque of Rs.20000 has
been presented for payment. What should be done by the bank?: Pay the cheque as Public Prosecutor is not
authorized to freeze the a/c.
18. There is an SB a/c in the name of A & B .They have given power of Attorney to 'C' for operation in
A/C, The cheque signed by the 'C' is presented in the bank after death of 'B' :
cheque will not be passed
19. Encashment of FDR with interest - payment can bemade in cash if it is less than Rs 20000
20. There is a credit balance in the saving account and there is a overdraft in the current account amounting to Rs
555. Both accounts are in the same name. Bank wants to adjust credit balance of saving bank account towards
payment of overdraft. As per which right, bank can do this?: Right of Set Off.
21. Maximum amount of deposit under Tax Saver fixed deposit is: Rs 150,000
22. Theminimum&maximumperiod of certificate of deposit is : 7 days, 12months
23. Call money deposit is part of the sector : Organised sector
24. The terms used for hidingmoney to avoid tax is :Money laundering
25. Which of the following formswill be used for allowing exemption to a depositor aged 61 years : Form15H
26. Missing person treated as having expired if missing for: 7 years
27. Super senior citizen after: 80 years of age
28. DD of Rs.50000/- in cash : not allowed
29. For the purpose of KYC rules any addition & modification on which recommendation: Financial Action Task
Force
30. In case of Minor what is wrong? Minor can make himself liable for his actions.In case of a Deposits
account customer wants the Nomination in his account. What is mentioned on Pass book
31. In case Fixed Deposits account the rate of interest fixed by whom: Board of Directors of respective bank.
32. In an account Mr. X Gives irrevocable power of attorney to Y for 1 yr. After 4 Month, X withdraw the
irrevocable power of attorney. What is action of the Bank? Bank will rely the revocable application of the Hence the
cheque signed by Y returned.
33. In case of Deposit Insurance whether it mandatory or not: It is Mandatory for all banks.
34. in which type of account where TDS not deduct in fixed Deposits Account: NRE and FCNR(B) only.
35. BC work as : Bank’s Agent
36. Cash Transaction Report ( CTR) should be submitted to FIU within how much period: 15
days of the close of the month.
37. Which of these rates are periodically reviewed by RBI?: Repo rate, Bank rate, but not
Savings Bank Rate.
38. Interest rate on Savings accounts: Not regulated by RBI
39. As per RBI guidelines, Demand draft of Rs 50,000 and above should be issued against : by
debit to account but not against cash
40. If pan no not submitted rate of TDS will be: 20%
41. Account is treated as inoperative if there is no operation for : 24 months
42. If a customer makes nomination, the bank is required to register in its books the nomination, and should give
acknowledgement to the depositor in writing. The bank should also indicate the fact of nomination on the face of
passbook/deposit receipt with the legend (a) Nomination Registered (b) Nomination marked (c) Nomination done (d)
Nomination acknowledged: Nomination Registered
43. Which of the following facilities are allowed to visually impaired persons who open account with bank – issue
of cheque book, ATM card, internet banking: All of these
44. What is the main motive of financial inclusion – (a) to give loans to poor persons (b) to issue credit card (c) to
provide banking services to distressed persons at affordable cost: Ans is C
45. Banks are required to deduct tax at source from interest payable to an individual if the interest credited or to
be credited in a financial year is more than Rs 10,000. This is as per provisions of (a) Income Tax Act (b) Goods and
Service Tax Act (c) Service Tax Act (d) RBI Act: Income Tax Act
46. Tax is not deducted at source in respect of which of the following income – (a) Interest on Bank deposits (b)
Rent on land and building (c) Brokerage (d) Dividend paid by listed company: Dividend paid by listed company
(However Dividend u/s 2(22)(e) is taxable for shareholder and thus TDS rate on such dividend is 10%)
47. Which of the following can be done by a minor?: A minor may draw, indorse, deliver and negotiate a
promissory note, bill of exchange or cheque so as to bind all parties except himself.
48. What is the responsibility of an introducer in an account opened by a person with a bank – (a) he is legally
liable (b) he is morally liable (c) he is bound to trace the account holder: He is morally liable.
49. Direct Tax Code will replace which of the following – Income Tax Act, Corporate Tax Act: Income Tax Act.
50. As per KYC Guidelines, Records of transactions to be maintained for at least ten years from the dateof
transaction, instead of _________from the date of cessation of transactions, and records pertaining to identification of
the customer and his address to be preserved for at least ten years after the business relationship is ended: ten years
51. What type of activity can be performed by Business Correspondent - (a) processing and submission of
applications to banks; (b) disbursal of small value credit, (c) recovery of principal / collection of interest (iv) collection of
small value deposits: All of these
52. E TDS - 26Q (tax deduction other salaries) to be filed for the month of September, before: 15th October
(Statement of TDS to be submitted within 15 days from close of quarter)
53. A Minor has extended Guarantee to a loan. It can be ratified by whom? It cannot be ratified by any
one.
54. In Limited Liability Partnership account, who are not eligible for becoming partners: a) HUF b) Minor c) body
corporate?: Ans: a & b
55. Insurance of deposit is done by DICGC up to: Rs 1 lac per depositor per bank.
56. What is the periodicity of review of risk classification of customers?: Every six months
57. Which is not a proof of Identity?: Ration card.
58. A customer who does not complete all KYC norms, what type of account is opened for him? No Frill
account in which cannot be more than Rs.50000 and credits in the Financial Year cannot be more than
Rs.100000.
59. There were three cash withdrawals of Rs 5.80 lac ,Rs 4.90 lac & 0.25 lacs from an account in a month.
Which of these transactions is/are will be reported to Financial Intelligence Unit as part of CTR? Cash withdrawals
of Rs 5.8 lac and Rs 4.9 lac.
60. Under Prevention of Money Laundering Act, banks are required to preserve records relating to opening the
account for how much period?: 10 years from date of closure of account.
61. As per KYC Norms, banks are required to update record of customer regarding proof of address, and identity
etc. of medium risk customers within how many yrs?: 2 year
62. Which of the following is not the key element of KYC policy a) Customer Acceptance Policy; b) Customer
Identification Procedures; c) Monitoring of Transactions; d) Risk Management e) Customer Awareness Policy: Ans is
E i.e. Customer Awareness Policy.
63. What is the distance criteria for office of Business Correspondent?: The distance between the place of
business of a retail outlet/sub-agent of BC and the base branch should ordinarily not exceed 30 kms in rural,
semi-urban and urban areas and 5 kms in metropolitan centers.
64. On whose recommendations, KYC norms came into force? (a) Goiporia Committee (b) Ghosh Committee (c)
FATF: Ans is FATF
65. Under KYC Norms, Documents relating to opening the account like proof of address and identity and
photograph should be taken again at what interval? (a) once in 5 years for low risk customer (b) once in 2 years for
medium risk customers (c) once in 1 year for high risk customers (d) Both (a) and (b): Ans is (d)
66. Record of cash receipt and payment under KYC to be maintained if cash receipt or payment in a single day
from one account is more than Rs 10 lakh.
67. Banks should have the responsibility of currency management entrusted to a nodal official of the rank not
less than that of a General Manager and will be accountable for the obligations cast upon currency chests by the
Reserve Bank.
his account will not be more than and credits in a financial year will not exceed . Rs
50,000; Rs 100,000
02. MinimumMaturity Period for Certificate ofDeposit is : 7 days
03. Why KYC guidelines have been issued by RBI under section 35 A of the Banking Regulation Act:
To prevent Money Laundering -
04. If payment of Rs 20000/- ismade in cash in case of FDR what is the penalty: equal to the amount paid
05. In Senior Citizen Saving Scheme account,who can be joint account holder?:Spouse
06. TDS not deposited in time. What is the interest payable?: _Bank to pay the amount with interest ©
1.5% per month simple.
07. What is the special feature of Basic banking Account? Account can be opened with nil or very
small amount and there are no requirement of minimum balance.
08. Current balance is Rs.6000/-. A cheque of Rs.18,000/- is presented. Branch passed the cheque by allowing
TOD. After few days, fixed deposit of the same party matured and TOD was cleared by crediting the proceeds to CA.
Customer disputes the transaction.Whether bank is having right in doing so? : Normally no without specific request
of the party. However, if bank has a specific clause in the account opening formto allow overdraft in such cases
and customer has consented to such clause, then temporary overdraft can be allowed and recover the same
fromthe account holder even if there is no specific request fromthe party.
09. TDS collected to be deposited with the Income Tax Deptt within: 7th day of succeeding month
during which it is collected.
10. TDS at the rate of 10% is to be deducted at source in case of individuals and HUF„ if the rent payable in a
financial year exceeds : Rs.1,80,000
11. You are maintaining current account in the name of the Trust. You receive notice of death of one of the
trustees. After this notice, a cheque signed by the deceased trustee is presented for payment.What should the bank
do?: Chequemay be paid, if otherwise in order.
12. Quarterly statement for TDS on salary should be submitted on form 24-Q within: 15days of the close of the
quarter
13. Pensioner account can be opened jointly with? Spouse as Either of Survivor or Former or Survivor.
14. Photograph is obtained at the time of opening the a/c. What is the purpose for the same?: for
identification of the prospective customer
15. Amount that can not be paid in cash in respect of term deposit by the bank as per Income Tax rules:
Rs 20,000 and above.
16. Interest rate on Saving Bank is fixed by : Banks themselves w.e.f. 25.10.11
17. A, having SB a/c with you, deposited Rs.25000. A public Prosecutor sent notice to bank informing thatMr
A is involved in forgery and requested not to permit withdrawal in the a/c. In between one cheque of Rs.20000 has
been presented for payment. What should be done by the bank?: Pay the cheque as Public Prosecutor is not
authorized to freeze the a/c.
18. There is an SB a/c in the name of A & B .They have given power of Attorney to 'C' for operation in
A/C, The cheque signed by the 'C' is presented in the bank after death of 'B' :
cheque will not be passed
19. Encashment of FDR with interest - payment can bemade in cash if it is less than Rs 20000
20. There is a credit balance in the saving account and there is a overdraft in the current account amounting to Rs
555. Both accounts are in the same name. Bank wants to adjust credit balance of saving bank account towards
payment of overdraft. As per which right, bank can do this?: Right of Set Off.
21. Maximum amount of deposit under Tax Saver fixed deposit is: Rs 150,000
22. Theminimum&maximumperiod of certificate of deposit is : 7 days, 12months
23. Call money deposit is part of the sector : Organised sector
24. The terms used for hidingmoney to avoid tax is :Money laundering
25. Which of the following formswill be used for allowing exemption to a depositor aged 61 years : Form15H
26. Missing person treated as having expired if missing for: 7 years
27. Super senior citizen after: 80 years of age
28. DD of Rs.50000/- in cash : not allowed
29. For the purpose of KYC rules any addition & modification on which recommendation: Financial Action Task
Force
30. In case of Minor what is wrong? Minor can make himself liable for his actions.In case of a Deposits
account customer wants the Nomination in his account. What is mentioned on Pass book
31. In case Fixed Deposits account the rate of interest fixed by whom: Board of Directors of respective bank.
32. In an account Mr. X Gives irrevocable power of attorney to Y for 1 yr. After 4 Month, X withdraw the
irrevocable power of attorney. What is action of the Bank? Bank will rely the revocable application of the Hence the
cheque signed by Y returned.
33. In case of Deposit Insurance whether it mandatory or not: It is Mandatory for all banks.
34. in which type of account where TDS not deduct in fixed Deposits Account: NRE and FCNR(B) only.
35. BC work as : Bank’s Agent
36. Cash Transaction Report ( CTR) should be submitted to FIU within how much period: 15
days of the close of the month.
37. Which of these rates are periodically reviewed by RBI?: Repo rate, Bank rate, but not
Savings Bank Rate.
38. Interest rate on Savings accounts: Not regulated by RBI
39. As per RBI guidelines, Demand draft of Rs 50,000 and above should be issued against : by
debit to account but not against cash
40. If pan no not submitted rate of TDS will be: 20%
41. Account is treated as inoperative if there is no operation for : 24 months
42. If a customer makes nomination, the bank is required to register in its books the nomination, and should give
acknowledgement to the depositor in writing. The bank should also indicate the fact of nomination on the face of
passbook/deposit receipt with the legend (a) Nomination Registered (b) Nomination marked (c) Nomination done (d)
Nomination acknowledged: Nomination Registered
43. Which of the following facilities are allowed to visually impaired persons who open account with bank – issue
of cheque book, ATM card, internet banking: All of these
44. What is the main motive of financial inclusion – (a) to give loans to poor persons (b) to issue credit card (c) to
provide banking services to distressed persons at affordable cost: Ans is C
45. Banks are required to deduct tax at source from interest payable to an individual if the interest credited or to
be credited in a financial year is more than Rs 10,000. This is as per provisions of (a) Income Tax Act (b) Goods and
Service Tax Act (c) Service Tax Act (d) RBI Act: Income Tax Act
46. Tax is not deducted at source in respect of which of the following income – (a) Interest on Bank deposits (b)
Rent on land and building (c) Brokerage (d) Dividend paid by listed company: Dividend paid by listed company
(However Dividend u/s 2(22)(e) is taxable for shareholder and thus TDS rate on such dividend is 10%)
47. Which of the following can be done by a minor?: A minor may draw, indorse, deliver and negotiate a
promissory note, bill of exchange or cheque so as to bind all parties except himself.
48. What is the responsibility of an introducer in an account opened by a person with a bank – (a) he is legally
liable (b) he is morally liable (c) he is bound to trace the account holder: He is morally liable.
49. Direct Tax Code will replace which of the following – Income Tax Act, Corporate Tax Act: Income Tax Act.
50. As per KYC Guidelines, Records of transactions to be maintained for at least ten years from the dateof
transaction, instead of _________from the date of cessation of transactions, and records pertaining to identification of
the customer and his address to be preserved for at least ten years after the business relationship is ended: ten years
51. What type of activity can be performed by Business Correspondent - (a) processing and submission of
applications to banks; (b) disbursal of small value credit, (c) recovery of principal / collection of interest (iv) collection of
small value deposits: All of these
52. E TDS - 26Q (tax deduction other salaries) to be filed for the month of September, before: 15th October
(Statement of TDS to be submitted within 15 days from close of quarter)
53. A Minor has extended Guarantee to a loan. It can be ratified by whom? It cannot be ratified by any
one.
54. In Limited Liability Partnership account, who are not eligible for becoming partners: a) HUF b) Minor c) body
corporate?: Ans: a & b
55. Insurance of deposit is done by DICGC up to: Rs 1 lac per depositor per bank.
56. What is the periodicity of review of risk classification of customers?: Every six months
57. Which is not a proof of Identity?: Ration card.
58. A customer who does not complete all KYC norms, what type of account is opened for him? No Frill
account in which cannot be more than Rs.50000 and credits in the Financial Year cannot be more than
Rs.100000.
59. There were three cash withdrawals of Rs 5.80 lac ,Rs 4.90 lac & 0.25 lacs from an account in a month.
Which of these transactions is/are will be reported to Financial Intelligence Unit as part of CTR? Cash withdrawals
of Rs 5.8 lac and Rs 4.9 lac.
60. Under Prevention of Money Laundering Act, banks are required to preserve records relating to opening the
account for how much period?: 10 years from date of closure of account.
61. As per KYC Norms, banks are required to update record of customer regarding proof of address, and identity
etc. of medium risk customers within how many yrs?: 2 year
62. Which of the following is not the key element of KYC policy a) Customer Acceptance Policy; b) Customer
Identification Procedures; c) Monitoring of Transactions; d) Risk Management e) Customer Awareness Policy: Ans is
E i.e. Customer Awareness Policy.
63. What is the distance criteria for office of Business Correspondent?: The distance between the place of
business of a retail outlet/sub-agent of BC and the base branch should ordinarily not exceed 30 kms in rural,
semi-urban and urban areas and 5 kms in metropolitan centers.
64. On whose recommendations, KYC norms came into force? (a) Goiporia Committee (b) Ghosh Committee (c)
FATF: Ans is FATF
65. Under KYC Norms, Documents relating to opening the account like proof of address and identity and
photograph should be taken again at what interval? (a) once in 5 years for low risk customer (b) once in 2 years for
medium risk customers (c) once in 1 year for high risk customers (d) Both (a) and (b): Ans is (d)
66. Record of cash receipt and payment under KYC to be maintained if cash receipt or payment in a single day
from one account is more than Rs 10 lakh.
67. Banks should have the responsibility of currency management entrusted to a nodal official of the rank not
less than that of a General Manager and will be accountable for the obligations cast upon currency chests by the
Reserve Bank.
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