Caiib BFM strategy

BFM::;;

The strategy for the study of Bank Financial Management which many people finds difficult to clear. If you study properly, it is easy to clear the BFM. This subject also contains 4 modules, they are;

-International Banking

-Risk Management

-Treasury Management

-Balance Sheet Management

Many people do not correlate the syllabus of the subject with day to day banking activity. So they find it difficult to score and understand this subject. But this not true, this subject is very much important which will increase your knowledge regarding top management & middle management functioning of your bank as well as banking as a whole industry.

All the modules are equally important, but you may clear the paper with three modules study also. Module A & B are relatively easy and scoring as well. Let us discuss strategy for each module.

Module A-International Banking

Important topics are Exchange Rates and Forex Business, Basics for Forex Derivatives, Documentary LC, and Facilities for Exporters & Importers

Rapid reading or bullet point reading is quite useful for this module. Practice numerical again and again.

Many numerical/case studies are asked from this module which are quite easy as compared to Module B & Module D case studies. Refer the case studies from McMillan given at the end of the topic. Also N.S.Toor book has many numerical and case studies. Questions are asked on Exchange rates, Shipment Finance etc.

Module B-Risk Management

All chapters are equally important as they are interlinked to each other. Again focus more on case studies/numericals given in Apendix at the end of chapter. Maximum case studies are asked from this module. Though short notes are useful for this module I would suggest McMillan reading for this module because some questions are twisted type for which you require details of the concept which is hard to get from short notes. RBI website contains FAQs which are quite useful for this modules, you should read them at least once.

Module C- Treasury Management

Important topics are Introduction, Types of treasury products, Treasury Risk Management, Treasury and Asset-Liability Management.

Mostly questions asked on this module are theoretical type, so through reading of McMillan is important. If you don’t get time then you can skip this module or read short notes since the weighted of this module for exam point of view is low according to me as compared to Module A&B. But those who wish to make carrier or work in treasury department, this is the best module to learn.

Module-D Balance Sheet Management

Important chapters are Components of ALM in Bank’s Balance Sheet, Capital and banking Regulation,, Capital Adequacy, Asset Classification and Provisioning Norms, Interest rate Risk management.

Though McMillan book contain sufficient material but I would suggest you to refer RBI website for this module. In this module focus more on Case Studies as compared to theoretical questions. Do not skip this module as it is much important for exam as well as knowledge point of view. No need to read McMillan line by line.

Overall you have to keep balance between theoretical reading as well as case studies/numerical since the paper would contain 40-45% case studies. N.S.Toor book contains good case studies and MCQs. Also there are many resources available on the internet from where you will get case studies for this module. After giving this paper you will realized that BFM is easier as compared to ABM and no need to worry for BFM.

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.

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IMPORTANT RATIOS & FORMULAE

IMPORTANT RATIOS & FORMULAE

IMPORTANT RATIOS & FORMULAE LIQUIDITY RATIOS
Current Ratio : Current assets / Current liabilities
Acid Test or Quick Ratio Quick assets / Current liabilities
Net working capital : Long term sources - long term uses OR current assets - current liabilities.
SOLVENCY or LEVERAGE RATIOS
Debt-Equity Ratio = Long term outside liabilities/Tangible net worth
Debtor service coverage ratio (DSCR) = (Net profit + depreciation + amount of interest on th long term liabilities) / (amount of
interest on the lob term liabilities + amount of instalment of long tern liabilities).

ACTIVITY RATIOS
Stock OR Inventory turnover= Sales / Stocks
Debtor turnover = Sales / sundry debtors (i.e. book debts, receivables)
Debtors' velocity or debt collection period Book-debts / sales x 12 PROFITABILITY
Return on equity = Profit / tangible net worth x 100
Return on investment or capital employed Profit / Investment (or capital employed) x 100
Net Profit Ratio -=Net profit / Sales x 100
BREAK-EVEN RATIOs
Costs of a business cart be classified into fixed and variable. Fixed costs are those costs which do not change with production like
rent, salaries and variable costs are those which change with production like raw material, wages, power, repair etc.
Profit = Sale minus fixed cost minus variable cost
Contribution = Sale price per unit minus variable cost per unit or Sale-variable cost
Break Even Point in units = Fixed Cost/(Sale Price per unit — Variable Cost per unit)or
Fixed cost/contribution per unit, Break Even Point in Rupees = Fixed cost x sale/(Sale- Variable Cost)
PV Ratio = contribution/sales x 100 , Break Even Point = Fixed cost/PV Ratio
Break Even Point in terms of capacity utilization=Break even units/Installed capacityx 100
Margin of Safety =(Actual Sale — Break Even Sale)/ Actual Sale*100
EarningPerShare(EPS) : The ratio denotes per share profit of a company. It can be used to compare 2 different companies" profitability. To
calculate the ration only the no. of equity share is taken (and not of preference shares). It can be calculated as under: Net profit after tax and
preference dividend/ no. of equity shares. It help in understandingmarket pricing of the equity share.
Price EarningRatio (PER) : The ratio indicates the currentmarket price vis-a-vis the earning per share. It can be calculated as under:Market price
of the equity share / earning per share
Different users of ratios
Long term creditors Short term lenders (Banks) Shareholders
Fixed charges cover =
Income before interest and tax /
Interest charges
Quick ratio ---
Quick assets / current liabilities
Earning per share =
Profit available for equity holders / no. of
equity shares
Debt service coverage ratio =
Cash profit for debt service / annual interest
and principal
Current ratio =
Current assets / current liabilities
Dividend Yield ratio =
Dividend per share / market price per
share
Cash Flow Statement :Cash flow statements are useful in planning short term operation of the business. Usually cash flow
statement is prepared by cash receipt & payment.
Fund Flow Statement : Fund flow statement is a statement of sources and uses of funds for a period. Fund means net working
capital. Fund flow statement indicates the changes in net working capital position and the reasons for the same.
For preparing this statement, balance sheet of two consecutive years and profit and loss account for the intervening period is
required.
Long term sources of funds include issue of capital, raising term loans, debentures, funds from operations and long term uses include
purchase of fixed assets, payment of dividend, payment of taxes, repayment of term loans.
If long term sources are more than long term uses, it will result in increase in net working capital and vice versa


Various types of long term source, short term sources and uses are given below:
Net Profit after Tax LTS Tax Payments LTU
Dividend Payments LTU Increase in Term Loans LTS
Increase in Other CL STS Increase in Stock STU
Decrease in TL LTU Depreciation Neither S nor U
Increase in short term bank borrowing STS Increase in Fixed Assets LTU
Net Loss LTU Increase in Receivables STU
Reduction in fixed assets LTS Drawings by partners LTU

Decrease in Receivables LTS Increase in Capital LTS
WHAT THE CHANGE IN RATIOSMEAN
If a firm realises book debts in cash — No change in current assets, quick ratio, current ratio or net working capital.
If a firm realises old assets or non current assets in cash or sell fixed assets in cash: current assets, quick ratio, current ratio or net
working capital will all improve
If a firm issues bonus shares — There is no change in any ratios
If a firm issues rights shares — Current ratio, quick ratio, net working capital, debt equity ratio, net worth will improve
If a firm revalues its fixed assets and creates revaluation reserve: Net worth and tangible networth increase. Debt equity ratio
declines / improves. There is no effect on current assets or quick assets or current ratio and quick ratio.
If increase in long term sources is more (say 125%) than increase in long term uses during a year liquid asset would increase,
liquidity would improve.
If increase in long term is uses more (say 125%) than increase in long term sources during a year — liquid asset would decrease,
liquidity would decline.
Lower and higher break even point : A firm with lower break even point has better chances for earning profits. A firm with higher
break even earns lower profits.
If break-even point of a firm goes up — It is an indication of dedine in profits
If break-even point of a firm goes down — It is an indication of increase in profits
If debtor-turnover ratio increase — It shows efficiency in recovery
If debtor-velocity ratio decrease — It shows firm is allowing credit to buyer of its products for a lesser period
If stock-turnover ratio increase — It is better use of stocks
If current ratio increases and quick ratio remain constant — It shows higher %age of stocks in or lower %age of receivables in total
current assets.
If current ratio is constant and quick ratio increases — It shows lower %age of stocks or higher %age in receivables in total current
assets.
SUMMARY -WORKINGCAPITAL TERMS
Particulars Classification
Working capital Current assets such as cash, stocks, book-debts, other current assets
Net capital working Current assets — current liabilities OR Long term sources — long term uses
Working gap capital Current assets — current liabilities (other than bank borrowing — i.e. OCL)
Working limits capital Bank facilities needed to purchase current assets. These facilities are cash credit, overdraft, bills
purchase/discounting, pre-shipment or post-shipment loans etc.
Factors which determine the working capital The following factors determine the overall working capital levels of the
industrial units: Policies for production, Manufacturing process, Credit Policy of the unit, Pace of turnover , Seasonality
Process for assessment of working capital requirements Generally there are three methods followed by banks for assessing
working capital of a firm i.e. (i) traditional method suggested under Tandon Committee, (ii) turnover method suggested by Nayak
Committee and (iii) cash budget method followed in case of seasonal industries.
Methods of Assessing Bank Finance
Holding Norms based Method of Assessment of Bank Finance Various steps used in the process include following
Deciding on the level of turnover: : in case of existing units, past performance can help in ascertaining projected turnover. In case
of new enterprise, it is based on production capacity, proposed market share, availability of raw materials, industry norms etc.
Assessment of Gross working capital: This is sum total of various components of working capital
inventory: For assessment of stock levels of raw material, work in process and finished goods, information like lead time, minimum
order quantity, location and number of suppliers, percentage of imported material, manufacturing process etc are considered.
Industry norms may be helpful in this regard.
Receivables/bills: it can be assessed easily. It is governed by market practice relating to a particular business.
Other Current assets: A reasonable estimate of other current assets like cash level, advance to suppliers, advance tax payment etc
is calculated. Sources of Meeting Working Capital Requirement
Own sources: This represents available net working capital. Further, as the estimate of limits is based on the projected balance
sheet at the end of the current accounting year, some internal accruals are also taken into account. Bank may stipulate additional
NWC if available NWC and anticipated internal accruals are not enough to maintain desired current ratio.
Suppliers's credit based on market practice
Other current liabilities like salary payable, advance from customers etc.

Very Very useful general banking MCQs

Very Very useful general banking MCQs

1. ______is a money market instrument, which enables collateralized short term borrowing through Govt. securities: Repo
Rate.
2. While issuing DD of Rs.50,000/- and above what should not be accepted: By cash
3. Call option stands for: Right to Buy but without obligation to buy.
4. ˜Call Money market refers to the market for short term funds ranging from _____: Overnight funds
5. ˜In Ultra Small Branches, a designated offi cer will visit the connected to Bank’s central server (CBS): Bank discretion.
6. ˜Maximum deposit in PPF in a FY: Rs.1,50,000
7. CRR decided by: RBI
8. ˜Public Debt Office (PDO) is an ______: Autonomous body and Investment Banker to Central Govt.
9.Clean Audit Report means : An audit report without any qualifications
10. ˜What is full form of USB: Ultra Small Branch.
11. cross selling: Offering banks products to existing customers
12. What is callable security: which can be called at any predetermined date.
13. Under Atal Pension Yojana (APY), the Central Govt will contribute 50% of total contribution or Rs 1000 whichever is lower, to
eligible subscribers account, for a period of: 5 years.
14.A bank cannot grant loan against security of which type of shares - other bank’s shares, own shares: own shares.
15.A cheque will be valid for: 3 months from date of issue
16.A DD is required to be crossed with account payee crossing if the amount of DD is: Rs 20000 and above
17.A Financial that derives its value from another financial product is called: Derivative.
18.A granted power of attorney to B for operating account of A. You receive information about death of A and simultaneously a
cheque signed by B on account of A is presented for payment. What should the Bank do?: Cheque will not be paid.
19.A minor will attain majority at the age of: 18 years
20.A private limited company must have minimum ___directors?: 2
21.After 6 months of successful transaction, which facility will be provided for accounts opened under PMJDY scheme?: Overdraft
22.Age limit in PrimeMinisters Jeeven Jyoti Bima Yojna: 18 —50
23.All scheduled commercial banks to convert their opening balance sheet as at April 1, 2013 in compliance with the IFRS.
24.An officer does not require permission of Branch Manager for: making payment of a pay order which was issued on account of
purchase of furniture by the bank.
25.Appeal against decision of Banking Ombudsman can be made to: Deputy Governor RBI.
26.Application for information under RTI Act 2005 should be disposed off within: 30 days
27. As per Atal Pension Yojana (APY), the minimum age of joining the scheme is 18 years and maximum age is and the age of
exit and start of pension would be 60 years: 40 years
28.As per Atal Pension Yojana (APY), the minimum period of contribution by the subscriber
29.As per KYC guidelines, Demand draft of how much amount cannot be issued against cash?: Rs 50,000 and above
30.As per latest change, what is the maximum PPF contribution that can be paid in a F.Y?: Rs 150,000
31.As per Official Language Policy, in Region "C", how much percentage of the Sign Boards should be in Hindi?: No specific target.
32.As per Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme, all saving bank account holders are entitled to join the scheme in
the age between: 18 to 70 years.
33.As per RBI guidelines, Base rate is to be reviewed by bank on _______: Quarterly basis.
34.As per RBI Guidelines, the charges for closure of bank account before stipulated period should not exceed: not applicable as
banks are free to fix account closure charges
35.As per RTI Act, information is required to be given by public authority within how many days?: 30days
36.As per RTI Act, information related to life and liberty should be submitted within: 48 hrs.
37.As per section 107 and 108 of Indian Evidence Act, a person can be presumed to have died if he is missing for : 7 years
38.As per Supreme Court who cannot be a partner? HUF.
39.At present, who is the Governor of RBI?: Dr Raghuram Rajan
40.Atal Pension Yojana (APY) offers fixed amount of pension ranging between depending upon the contribution which will be based
on the age of joining the APY: Rs 1000 to Rs 5000
41.Balance lying in the account of a company. When winding up proceedings of the company started funds in the account will be at
disposal of: Official Liquidator
42.Bank Customer relation in safe custody: Bailee- Bailor.
43.Banker customer relationship in standing instruction: Agent and Principal
44.Banking Codes and Standards Board of India (BCSBI) is a – (a) subsidiary of RBI (b) Department of Ministry of Finance (c)
Department of Indian Banks Association: None of these as it is an independent and autonomous watch dog to monitor and ensure
that the Banking Codes and Standards adopted by the banks are adhered to.
45.Banks are required to maintain Minimum and maximum CRAR of: Min 9% in India. There is no maximum.
46.Banks should disclose the details of fees/remuneration received in respect of the Bancassurance business undertaken by them, in
the ‘Notes to Accounts’.
47.BCSBI is affiliated or regulated by? An independent body
48.Best indicator of country's growth?: GDP
49.Bharathi Airtel tie up with which bank regarding payment bank?: Kotak Mahindra Bank.
50.Break even point: Level of sales at which there is no profit no loss
51.Broad money is represented by: M3.
52.Business correspondent appointed by bank work as- (a) Bank dealers; (b) Agent of the Bank (c) Customer's agent; (d) RBI agents
(e) RRB Agents (f) Trustees of customer: Agents of the bank.
53.Business correspondent in bank are for banking business: Bank is the Principal and correspondent is the Agent.
54.Call money is available for: one day
55.Call option stands for: Right to Buy but without obligation to buy.
56.CAMEL rating is done by: RBI to judge the health of banks
57.Capital account convertibility means the freedom to convert to financial assets in to foreign financial assets and vice versa.
58.Capital adequacy ratio related to? : CRAR- capital fund.
59.Carbon credits relates to: environment
60.CARE STANDS FOR : CREDIT ANALYSIS & RESEARCH LTD
61.Certificate of incorporation issued by: Registrar of Companies
62.Chairman of SEBI: U K Sinha.
63.Clayton’s Rule is related to which of the following rights?: Right of Appropriation
64.Clean Audit Report means : An audit report without any qualifications
65.Contact less Debit Card has been issued by: ICICI Bank.
66.Contract of Insurance is a contract of: Indemnity.
67.Contract to perform the promise or discharge the liability of a third person in case of his default can be termed as - (a)Guarantee;
(b) Indemnity; (c) Contingency; (d) Subrogation: Guarantee.
68.Cost push inflation is due to: High cost of production
69.Counter Cyclic Buffer required as per Basel III will be made at: normal times
70.CP is issued for amount of: Rs.5.00 lac and multiples of Rs 5 lac.
71.CPPC STANDS FOR : CENTRAL PENSION PROCESSING CELL
72.Cross selling: Offering banks products to existing customers
73.CRR decided by: RBI
74.CRR is based on which act: Sec 42(1) of RBI Act
75.CRR is calculated on: net demand & time liability.
76.Current account operated by finance director of a limited compnay. Cheque signed by him presented for payment after his death:
Cheque should be paid
77.Customer day is observed by banks at what periodicity?: once in a month (15th day of every month)
78.DEATH CLAIM SETTLEMENT IN HOW MANY DAYS? : 15 DAYS
79.Delayed collection beyond abnormal period: SB Rate + 2%.
80.Distribution of Insurance products as Corporate Agents is called: Bancassurance
81.DRP: Disaster Recovery Plan
82.DSB Returns relate to: Off Site Surveillance
83.Duplicate DD to be issued in how many days?: 14 days from the date of request
84.Elasticity of Demand is least in the case of: Items of necessity.
85.Existing total No. of RRBs as on 31-03-2012: 82
86.Expand IFRS -International Financial Reporting System
87.Expand the abbreviations GAAS: Generally Accepted Auditing Standards
88.Facility for Exchange of Notes and Coins: The facility of exchange of cut/mutilated banknotes, in addition to soiled notes and issue
of good quality clean banknotes/coins, should be made available at all bank branches (including those of co-operative banks and
RRBs). This facility should be provided to all members of public without discrimination on all working days
89. FIR is required to be filed in case where the counterfeit notes found are acknowledgement is to be obtained from the concerned
police authorities: Five pieces and above.
90.First Unique Identification Card (Aadhar card) was issued in which state – Maharashtra; Sikkim; Manipur; Karnataka?:

Maharashtra ( To Ranjana Sonawne of Tembhli village in Maharashtra)
91.For counterfeit notes a consolidated report as per prescribed format to be submitted to police authorities if in a single Txn note
is: five pieces or more in one transaction and if four pieces then consolidated report through nodal office to local police station.
92.For creation of Equitable mortgage, the town for deposit of title deeds to be notified by – (a)State Govt; (b) RBI; (c) Central Govt;
(d) Bank: State Govt
93.For injection of liquidity Txn done by RBI: Repo Rate.
94.For seeking information under RTI what is not required?: Reason for seeking information not to be disclosed.
95.For Ultra Small Branches a designated officer will visit the village on a prefixed date and time every ______with laptop and will be
connected to Bank’s central server (CBS): Week
96.Forged currency note: not to be returned & should be impounded
97.Fraudulent Draft presented and paid, who is to lodge complaint: Paying banker
98.FSDC: Financial Stability and Development Council
99.Full form of FDI: Foreign Direct Investment
100. Full form of IRDAI is: Insurance Regulatory & Development Authority of India.
101. Full form of MUDRA: Micro Units Development and Refinance Agency Ltd (MUDRA)
102. Full form of NIM: Net Interest Margin
103. Full form of Nrega: National Rural Employment Guarantee
104. Full form of PRAN?: Permanent Retirement Account No
105. Funds received in Consolidated Fund of India are maintained with: RBI (Reserve Bank of India is the main banker of the
Government and other authorised Banks function as its agents while handling Government transactions).
106. General insurance works on which principle: Principle of utmost faith.
107. Gift City: Gandhi Nagar, Gujarat;
108. Govt securities are known as: Gilt edged securities
109. Govt. infused capital in 9 PSBs in the beginning of 2015 amounting to: Rs.6990 crore
110. Green revolution is related to production of : Wheat and Rice
111. Growth of people in a country is reflected in: real per capita income
112. Guidelines on having Investor Protection Funds by Stock exchanges issued by: SEBI.
113. Head Office of Asian Development Bank is located at: Manila (Philippines)
114. Head Office of International Labour Organisation is located at: Geneva
115. Head office of NABARD is located at: Mumbai (S!DBI Head Office at Lucknow)
116. How much exemption from income is allowed as per section 80 C of Income Tax Act for the financial year 2015-16?: Rs
150,000
117. Hyper inflation- when a country experiences very high and usually accelerating inflation. The general price level within a
specific economy increases rapidly as the functional or internal currency, loses its real value very quickly.
118. IBPP STANDS FOR : INTERNET BILL PRESENTATION & PAYMENT
119. ICAAP full form: Internal Capital Adequacy Assessment Process.
120. If a Garnishee Order is received by the bank in which amount to be attached is not mentioned, what should the bank do?:
Full amount to be attached
121. If there is delay in reporting to RBI by currency chest or there is double/excess reimbursement, what is the rate of
interest charged by RBI?: Bank rate+2%.
122. in 1969, the 14 Bank Nationalised. At that time the Prime Minister of India: Smt. Indira Gandhi
123. In a partnership formed under Indian Partnership Act 1932, what is the liability of a partner?: Partner is liable jointly and
severally i.e. as partner as well as in his personal capacity. Therefore, liability is unlimited
124. In which type of charge possession is with creditor and ownership is with debtor?: Pledge
125. Income Rs.1.00 lac- Tax Rs.0.10 lac, Income Rs.2.00 lacs: Tax Rs.0.30 lacs, Income Rs.0.50 lac-Tax Rs.0.03 lac-This is
example of Progressive Tax
126. Inflation in India is measured on the basis of : Wholesale Price Index
127. Insurance amt in PMJDY: Rs 1 lac.
128. Insurance sector in India is regulated by: IRDA
129. Internal audit is meant for : internal operational check ups
130. Investment Fluctuation Reserve is calculated on which type of security? Available for Sale category and Held for Trading
category.
131. Investment Fluctuation Reserve is maintained on securities classified as: "Held for Trading" and "Available for Sale '
132. Investment Fluctuation Reserve is part of which type of capital: Tier I Capital.
133. Islamic banking has the features of : Conservative banking
134. CMD of a public sector bank is appointed by: Central Govt.
135. Issue of Rs 5 coins to commemorate the occasion of "150th Birth Anniversary of Swami Vivekananda": The Government of

India has minted the above mentioned coins.
136. Issue of Rs 5 coins to commemorate the occasion of "60th year of India Government
137. Job rotation for clerical staff should be done in every ______: 6 months.
138. Kisan Vikas Patra scheme was discontinued in 2010 due to which reason?: Fraud
139. Kite flying means accommodation receipts and payments and not genuine trade transactions
140. KV Kamat has become first chairman/President of which bank?: New Development Bank (NDB) of BRICS
141. LAFAR is submitted by whom?: Statutory Auditor
142. Letter received in Hindi in Region B, answer to be given in %age: 100%
143. LFAR returns relate to: Statutory audit
144. Life Certificate of pensioners is taken in which month?: November
145. Loan should not be granted to a director of the bank against: shares of own bank ( Loan can be granted against bank’s own
deposits; insurance policy; govt security).
146. Main Objective of Infrastructure Development Corporation is : Development of infrastructure of the country.
147. Marginal standing facility rate: 7.75%
148. Maximum period for filing case with Ombudsman: 12 months from receiving reply from bank
149. May I help you counter on how much staff: 10 and above.
150. Meeting of the Official Language Committee is held: Quarterly
151. MGNREGA: Mahatma Gandhi National Rural Employment Guarantee Act
152. MIN SUBSCRIPTION IN PPF CANNOT BE LESS THAN: Rs.500/-
153. Minimum amount of CD – Rs.1. lakh
154. Minimum and Maximum amount that can be deposited in PPF account is _____: Minimum Rs. 500/- & Maximum Rs. 1.50
lacs.
155. Money market mutual funds are regulated by: RBI
156. Mutual fund Market regulated by: SEBI
157. Name of device used by Business Correspondents: Biometric device.
158. Net Interest Income is Equal to: Interest received on assets о /ŶƚĞƌĞƐƚ ƉĂLJŵĞŶƚƐ ŽŶ ůŝĂďŝůŝƟĞƐ
159. New name of Planning Commission: “National Institution for Transforming India” or “NITI”
160. NITI full form: National Institution for Transforming India (Chairman PrimeMinister; Dy Chairman Arvind Panagariya).
161. Nobel Price for Microcredit: Muhammad Yunus
162. Number of directors in a public limited company can be: between 3 to 15. For more than 15, special resolution passed by
shareholders is required
163. Payment of DD more than 20000 only by crediting to account and not in cash as per: RBI guidelines
164. PERIODICITY OF CUSTOMERMEET IN A BRANCH: MONTHLY.
165. Perpetual Non redeemable preference share is a part of: Tier -1 capital
166. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme offers a life insurance cover of: Rupees 2 lakh
167. Premium in Prime Minister Suraksha Bima Yojana: Rs.12 per year and claim available is Rs.2 lac in case of accidental death
only.
168. Primary Deficit is Fiscal deficit?: Always less
169. Purchaser of DD cannot do the following: Stop the DD
170. Rating of Bank is carried by RBI on CAMELS criteria, what do “C” stands for? Capital Adequacy.
171. RBI at which rate purchases or rediscounts B/E or other Commercial Bks: Bank Rate (7.75%)
172. RBI can issue bank note upto: Rs 10000
173. RBI gives credit to bank on which rate: Repo rate
174. RBI Governor's main concerns in monetary Policy: Inflation and Fiscal Deficit
175. RBI has issued star series notes for replacement of wrongly printed currency notes. Currently, these notes have been
issued in the denomination of : Rs 10, Rs 20, Rs 50, Rs 100.
176. Regulator of Capital market: SEBI
177. Reporting time before 15 minutes from starting of public dealings in: Metro/urban/Semi Urban & Rural area.
178. Revaluation Reserve discounting factor to be taken to which capital: 55% & Tier II Capital.
179. Review of RBI credit and monetary policy: Bi-Monthly
180. RTI: Person seeking information need not give reason as to why he is seeking the information.
181. Sabbatical can be availed maximum: 24 months and two times in your tenure.
182. Safe custody of Articles comes under which act: Indian Contract Act
183. Safe deposit locker – maximum deposit that can be asked is: 3 year advance rent plus locker breaking charges.
184. SAFTA is related to :TRADE
185. Security officer visit for high risk branches: Once in a quarter.
186. Sensex of 30 scrips is related to: Bombay Stock Exchange (BSE)
187. Shares transferred in electronic form: Dematerialization.
188. Spread in the context of bank profit loss account means: Interest earned - interest expended
189. Statutory Audit of banks is done as per provisions of: Banking Regulation Act
190. Subordinate Debt should not be more than % of tier-I capital? 50%
191. Subordinated debt instruments together with all other instruments of Tier - II capital are to be limited to ___ of Tier I: 100%.
192. Subordinated Debt which is a component of Tier II capital, is shown in the balance sheet as a part of: Other Liabilities and
Provisions on the liability side
193. Subprime crisis means : Problem created by lending to borrowers not meeting the credit rating criteria.
194. The Branch Level Customer Service Committee may meet to study complaints/ suggestions, cases of delay, difficulties
faced / reported by customers / members of the Committee and evolve ways and means of improving customer service: at least
once a month
195. The charge levied by banks for under utilization or non utilization of sanctioned CC/OD limits is called: Commitment charge.
196. The Committee on Listing of Stock Exchanges was headed by Dr Bimal Jalan. The Committee has recommended against
listing of Stock Exchanges.
197. The country of Euro Zone facing crises is: Greece and Cyprus (latest Cyprus)
198. The liability of Introducer in case of fraud by the customer: No legal liability
199. The main source of infrastructure finance are: FDI investment, Pension funds, Insurance funds.
200. The police seeks information regarding conduct of an account being maintained in your branch in connection with some
investigation. Can the bank pass on the information? : Yes, if the information is asked by an official of the rank of incharge of Police
Station or above and in writing.
201. The present Bank Rate is: 7.75%
202. The recent committee on urban coop banks was headed by: R. Gandhi
203. Tier I capital also known as: core capital.
204. Tier II capital can be maximum up to : 100% of Tier -1 capital.
205. Total number of Banking Ombudsman in India: 15
206. Transfer of interest in specific immovable property to create security for a debt is called: Mortgage
207. Treasury bill is issued for: 91 days,182 days,364 days
208. UCBs will start TDS at source if interest on term deposit in a financial year is more than Rs.10,000/- from which date: 1st
June 2015
209. Unclaimed deposits with banks which have not been claimed for last 10 years will be transferred to: Depositor Education
and Awareness Fund.
210. Under new pension scheme- minimum subscription in a year: Rs.6000 in a year ( min 500 at one time and for max there is
no upper limit)
211. Under Pardhan Mantri Suraksha Bima Yojana (PMSBY) Scheme, the uniform premium amount of Rs plus service tax
should be applicable per annum per person: Rs 12
212. Under PMJDY Scheme announced by PrimeMinister the debit card will be issued to every account holder. The type of debit
card will be: Rupay Card;
213. Under PMJDY, what is the time limit for lodging a claim in respect of the accident as covered under accident insurance
cover:Within 90 days of accident.
214. Under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme, the uniform premium amount of is
applicable per annum per member: Rs 330
215. Under Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) scheme, the individual is eligible to join the scheme at the age
between: 18 years to 50 years
216. UNDR NPS MINIMUM SUBSCRIPTION IN A YR : Rs.6000
217. Uniformity in Intersol Charges: Banks should follow a uniform, fair and transparent pricing policy and not discriminate
between their customers at home branch and non-home branches. Accordingly, if a particular service is provided free at home
branch the same should be available free at non home branches also. There should be no discrimination as regards intersol charges
between similar transactions done by customers at home branch and those done at non-home branches. Cash handling charges may
not be included under intersol charges
218. Upon finding the counterfeit currency note on the counter, the action of the bank should be: Impound the currency note
but credit full amount to customer. Receipt not to be issued to depositor.
219. Voting rights to an individual shareholder in Private banks not to exceed: 10 % (being increased to 26%)
220. What are the total number of digits in Aadhar Card: 12
221. What does LAF stands for_____: Liquidity Adjustment Facility.
222. What is a special purpose vehicle? A special purpose vehicle is a legal entity (usually a limited company of some type or,
trust or a limited partnership) created to fulfill narrow, specific or temporary objectives. Its operations are limited to the acquisition
and financing of specific assets.
223. What is Accrual concept: Every income or expense is taken in to account when becomes due irrespective of the fact
whether it is received or paid or not.
224. What is age limit in PMJeeven jyoti Bima yojna?: Eligible all saving accounts holder in the age of 18 to 50 years; Benefits
Rs. 2 lac on death due to any reason; Premium – Rs. 330 per annum per member.
225. What is Certificate of Incorporation?: Certificate issued by Registrar of Companies to a limited company, which is a
conclusive evidence of existence of company as a separate body corporate.
226. What is Debt securitization: Converting illiquid financial assets in to liquid marketable securities.
227. What is factoring?: Purchasing of Book debt
228. What is forfaiting?: Without recourse discounting of export bills
229. What is full form of FDI?: Foreign Direct Investment
230. What is full form of GDP?: Gross Domestic Product
231. What is full form of GST?: Goods and Service Tax
232. What is full form of IFRS?: International Financial Reporting Standards.
233. What is full form of ULIP?: Unit Linked Insurance Plan
234. What is guarantee corpus in MUDRA bank or funds allocated for MUDRA: Rs 20000 crore
235. What is Hybrid debt instrument? a) Debenture b) Bond c) Preference
shares d) Convertible Bonds.
236. What is incorrect about RTI?: Reason for seeking information to be mentioned in RTI application
237. What is meant by 'sensitivity' in economics terms? Sensitivity analysis (SA) is the study of how the variation (uncertainty) in
the output of a statistical model can be attributed to different variations in the inputs of the model. It is a technique for
systematically changing variables in a model to determine the effects of such changes
238. What is Personal Accident insurance cover for death and permanent disability due to accident in PrimeMinister Jan Dhan
Yojana (PMJDY): Rs.1.00 Lac
239. What is rate of Premium in Pradhan Mantry Suraksha Bima Yojana (PMSBY)?: Premium payable Rs. 12 per annum per
member; sum insured Death / permanent disability Rs. 2 lacs; Partial disability Rs. 1 lac.
240. What is short selling?: Selling securities by a dealer which he does not possess at the time of sale.
241. What is the age limit for coverage under Prime Minister Suraksha Bima Yojna (PMSBY): 18 years to 70 Years
242. What is the amount of insurance cover in case of PrimeMinister Jeevan Jyoti Bima Yojan (PMJJBY): Rs 2 lakh
243. What is the cut off point for reporting of Non Cooperative Borrowers – Rs.5. Crore and above.
244. What is the date for final implementation of Basel III?: 31.03.2019
245. What is the effect of Bonus Issue of Shares on Debt-equity ratio? No effect at all as neither there is a change in term liability
nor in net worth of the company.
246. What is the full form of QIP?: Qualified Institutional Placement.
247. What is the full from of GIFT city?: Gujarat International Financial Tech City.
248. What is the impact of increase in Inflation rate?: Purchasing power decreases
249. What is the initial tax exemption limit for Normal Senior Citizens i.e. aged between 60 years to less than 80 years? Rs 3 lakh
250. What is the liability of a bank in case of payment of forged cheque?: Bank is liable to drawer for having made payment
without authority as also for wrongful dishonor of another cheque due to insufficient funds.
251. What is the lock in period for deposits under PPF scheme: 15 years
252. What is the main concern of Indian Economy today?: Rising Inflation
253. What is the maximum age of Govt’s nominee on Board of Directors of a bank?: 70 years
254. What is the maximum amount for which award can be given by Banking Ombudsman in cases other than complaints
relating to credit card: Rs 10 Lac
255. What is the maximum amount of award that can be given by Banking Ombudsman in case of credit cards?: Rs 1 lakh
256. What is the meaning of delegation? Delegation means the granting of authority subordinates to operate within the
prescribed limits. It means subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.
Authority can be delegated but responsibility cannot be delegated.
257. What is the meaning of financial closure? Financial Closure occurs when there is legally binding commitment of private
sponsors to mobilize funding or provide services.
258. What is the minimum paid capital required for setting up a payment bank?: Rs 100cr
259. What is the nature of business of Insurance Co: indemnifying the insured, collective sharing of risks
260. What is the objective of selling mutual fund product by a bank?: To earn non interest income
261. What is the percentage in Region A to bring training materials bilingually?: 100%
262. What is the period of 12th Five year plan :2012-2017
263. What is the Purpose of nomination? To settle claims easily and quickly in case of death of depositor
264. What is the reason for allowing appointment of a Non Banking Financial company as BC?: For increasing financial inclusion.

265. What is the relation between debenture holder and company: Creditor and debtor
266. What is the relation between purchase of a DD and Bank?: Creditor and Debtor
267. What is the relationship between bank and customer in case of Garnishee order?: Debtor and Creditor
268. What is the role of nominee in term deposit?: He is trustee of legal heirs
269. What is the Service Charge for a remittance of Rs.20,000/- to Nepal if payee not customer of NSBL: Rs 100
270. What is the stake of Central Govt., Sponsoring Bank and State Govt. in RRB capital structure: 50:35:15.
271. What is the time within which death of account holder under Prime Minister Jan Dhan Yojna (PMJDY) should be advised to
bank? 30 days
272. What is the transaction code no for DD in the MICR cheques: 16
273. What is Variable cost:Which changes with production like Raw material, wages, power etc.
274. What refers to P-Notes: Participatory Notes used by Foreign Institutional Investors for investment by overseas investors
who are not registered with SEBI.
275. What right is available to paying bank in respect of DD - stop payment, cancellation, revalidation: revalidation
276. What should the minimum holding of Government in public sector banks?: 51%
277. What was the target for opening accounts under PrimeMinister Jan Dhan Yojana which was to be achieved by 26 Jan 2015?
Initially 7.5 crore accounts which was later increased to 10 crore accounts.
278. When a bank in addition to accepting deposits and making advances, provides various other types of financial services, it is
called: Universal Banking
279. When a complainant receives copy of award from Bank Ombudsman, within how many days, he is required to give his
acceptance?: 30 days from date of receiving the copy of award.
280. When banks borrow fund for overnight, what is it called: call money
281. When does the right of a nominee start in case of deposits? On the death of all account holders.
282. When is customer day celebrated : 15th of each month
283. When letter of administration issued: When a person dies intestate.
284. When remittance done to currency chest, counting in front of bank officials will be done for denomination of: Rs.500 and
Rs.1000 notes.
285. Which company has got license to start new private sector bank in the year 2014?: Bandhan Financial Services Ltd.
286. Which describes insurance business most?: Disaster risk cover.
287. Which is example of Direct Tax: Income Tax
288. Which is not the function of ALCO?: Fixing Budgets and Targets
289. Which is the central bank of India? : Reserve Bank of India.
290. Which is the first Credit information company of India?: COL
291. Which is the largest source of liquidity in equity market? FII
292. Which of the following can not be done by the purchase of a Demand Draft – (a) Stop payment of DD; (b) Obtain duplicate
DD in case of loss; (c) Getting the DD revalidated; (d) endorse the DD: Stop payment of DD.
293. Which of the following does not come under Tier II capital? a) Capital reserves b) Undisclosed reserves c) Revaluation
reserves d) Cumulative Perpetual shares: Capital Reserves.
294. Which of the following does not have share in RRB? (a) Sponsor Bank (b) Central govt (c) State govt (d) Nabard: Nabard.
295. Which of the following has become new member of Asian Clearing Union: Maldives Monetary Authority. (Other members
are Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central Bank of the Islamic Republic of Iran,
Central Bank of Mynamar, Nepal Rashtra Bank, Central Bank of Sri Lanka, State Bank of Pakistan)
296. Which of the following is a Direct Tax - Excise duty, custom duty, service tax, VAT, gift tax: Gift Tax
297. Which of the following is an indirect tax? Sales Tax
298. Which of the following is Chairperson of NABARD: Sh. Prakash Bakshi
299. Which of the following is index of National Stock Exchange – (a) Nifty; (b) Sensex; : Nifty
300. Which of the following is the financial capital of India – Delhi, Ahmedabad, Mumbai: Mumbai
301. Which of the following will be reduced with increase in inflation? (i) Purchasing Power of money (ii) Interest rate (iii) Cannot
say (iv) CRR (v) None of these: Ans is Purchasing power of Money.
302. Which of the following-is a subsidiary of Standard & Poor? CRISIL
303. WHICH OF THE ITEMS WILL NOT BE AN ASSET IN BANKS BAL SHEET – ADVANCES/FIXED ASSET/ DEPOSITS/
: Deposits
304. Which one is not under core sector: automobile
305. Which sector has highest share in GDP of India?: Services
306. Which tax has been abolished in Budget 2015-16?: Wealth tax
307. Which type of charge to be created on Bank’s FD?: Assignment
308. While giving guarantee favouring stock exchange on behalf of brokers, minimum margin should be (a) 50 % out of which
minimum 25% should be cash margin (b) 50 % out of which minimum 20 % should be cash margin (c) 50 % out of which 10 % should

be cash margin: Ans is (a)
309. While increasing or decreasing interest rate, we often hear basis point. 100 Basis point will be equal to: 1 %.
310. Who can stop payment of a Demand Draft?: Nobody
311. Who decides Saving Bank rate: Bank- ALCO committee.
312. Who has never been Governor of RBI – (a) C Rangarajan; (b) Y V Reddy; (c) Bimal Jalan; (d) Pratip Kumar: Pratip Kumar
313. Who headed the committee appointed by RBI for financial inclusion?: Nachiket Mor (The Committee on Comprehensive
Financial Services for Small Businesses and Low Income Households)
314. Who is Drawee in case of DD - paying branch, collecting bank, issuing branch; purchaser, holder?: Paying branch of issuing
bank.
315. Who is not promoter of CIBIL: RBI....
316. Who is regulator of commodity market in India? 1)sebi 2) Ncedex 3) mcx 4) Forward Market Commission: Forward Market
Commission.
317. Who is the regulator of capital market?: SEBI
318. Who is the regulator of insurance sector?: IRDA
319. Who is the Regulator of LIC: IRDA
320. Who issue Garnishee Order: Court
321. Who was President of India before Ms Pratibha Patil: A P J Abdul Kalam
322. Who will decide Base Rate of a Bank?: Bank itself.
323. Wholesale Price Index is calculated on which basis?: Weekly basis for food inflation and monthly for aggregate inflation.
324. Why International Financial Reporting System (IFRS) should be implemented: For comparison of financials of companies
operating in two different international jurisdictions.
325. Within how many days appeal against Ombudsman can be filed?: 30 days
326. Within how many days, appeal can be made by a bank against the Award of Banking Ombudsman to the Appellate Authority
i.e. Deputy Governor RBI: 30 days from receiving the acceptance from customer
327. You need to issue a Demand draft for Rs 10,000 favouring Mr X of Chandigarh.Which one of the following will not be the
option while issuing DD – (i) Payee will be Mr X or Bearer (ii) Payee will be Mr X Chandigarh (iii) Payee will beMr X State Bank of India
A/C 31435195901: Mr X or Bearer

IT security recollected questions on 20.01.2019

IT SECURITY-Recollected Q(20/01/2019)

1-Trapdoor

2-Botnet

3-access privilege

4-logical security
5-audit trail
6-rfid
7-issm
8-nsp and isp are generally called?
9-sniffer
10-one qus from RTI
11-whitebox testing
12-beta testing
13-ciso
14-threat/vunerbility
15-BIA
16-Risk=probabilty*damage potential
17-ISMS
18-Risk control
19-ISO270001
20-it governace how related to security governance
21-KRA
22-GPRS
23-Trojan horse
24-shema
25-CCTV which type control
26-best way to protect atm fraud
27-e-waste
28-what type fire extingure used in compter and electrical equip..
29-bar code
30-why matrix code used over bar code
31-intrusion prevention
32-one question related to security perimeter
33-BIG Data
34-BYOD which type risk
35-HP open view software
36-load balancing
37-inteligent device used in network-Router
38-switch-forwards mac add
39-mpls
40-vsat
41-air gaps
42-off the shelf software
43-adware
44-one qustion (arrange testing)unit/uat/beta..
45-salami technique
46-a major threat that faces telecom industry-eaves dropping
47-CDR
48-one ques from bpo
49-SDLC
50-ISO/IEC 90003:2004 (2 ques)
51-PDCA
52-SOX
53-PCI DSS
54-SAS 70
55-ATM related ( small camera are placed whic has capability of transmission)
56-how RFID (rj45 with visible external cabeling)
57-defense in depth (2 question)
58-what to do to receive govt green certificate like this..
59-tunneling
60-one ques from sensor base lighting ( light on only when movement)
61-one ques related to RDBMS
62-CVV
63-why rupay by npci( to compete with visa and mastercard)
64-audit control
65-tcp ip layers
66-NAT
67-smtp
68-dmz
69-unified threat management
70-SIEM
71-VOIP
72-IP SEC
73-COTS
74-IaaS
75-payper click
76-buffer overflow
77-stuxnet
78-one ques related to cyber terrorism
79-spyware
80-one ques related to rootkit
81-one ques related to high availabilty
82-latency
83-recovery block
84-dual core
85-2 ques related to rpo/rto
86-edp
87-check list bast audit, whts demerit ?
88-comparision ( audit through computer/audit with computer)
89-insurance-IRDA
90-FSDC
91-UCC/2007
92-CDR
93-pension form regulatory manged by ?94- digital signature replaced by?

IT security  exam was of moderate level.

The questions were asked from.

OSI model, IP spoofing, IS audit methodologies, threat management, Software security control, Business continuity plan, Salami technique, access privilege and some case studies questions from various topics.

Thank you!

MSME recollected questions on 20.01.2019

Internal and external sickeness. Women enterprenuers, gross profit ratio, seeda, firm level indicators,iso 9000,credit linked subsidy scheme,which of the following are excluded in investment in plant and machinery?, Environmental appraisal, credit appraisal, msme stages, wto, fiwe, sidbi,


Msme recolleted on 20.01.2019
Sarfaesi enacted year, mudra max loan, loan sanctioned given 40lkhs asked to caliculate credited linked subsidy ;-answer 15%of loan. Fiwe head qtr, Msme services and manufacturing units investments, No of directors in public firms, paid up capital of public ltd company, Notice period of minor for, project report definition- page 20 text book, Itcot place Tamilnadu pg-21, women enterprenuer share in company -51% pg-21, categories of enterprenuers pg -23, mahila vikas nidhi pg-24,
Is llp is legal? Pg-43, composite loan limt pg -102, Iso 9000 pg-53, credit rating schemes pg-58, credit limits above 5lk and up to 25 lkh pg-69, sidbi year pg-69, smera pg-74, Mac credit guarantee for women and special category pg-88, collateral free loans max10 lkhs pg-105, export finance pg-109, statement given asked whether it is performance guarantee or financial guarantee pg-103, back to back lc and red clause lc pg-111, 5c's and asked which is important C pg-115,
Break even point pg-130, gross profit ratio formula pg-131, nayak comitee method 20% yoy of 142,post shipment direct bit pg-154, msme sector is second largest emplloyment producing sector after agriculture, diffusion effect pg 178,project uptech sbi pg-184, cluster chapter 5-8 bits, seeda pg-232, firm level indicator pg-235, sick enterpriae definition pg-240, int and ext causes pg-240, tending towards sickness pg-242,
Banning industries not having scope is done by term lending institutions pg-246, rehabilitaion package 6 months pg-252, will full defaulters definition pg257, doubtful asset pg-261, customer relationship is COMPREHENSIVE approach pg-284, Basel 3 Four vital banking parameters of pg-294,Don't leave single point in items included and items excluded in investment in plant and machinery in pg 362.