CERSAI

CERSAI

Central Registry of Securitisation Asset
Reconstruction and Security Interest (CERSAI) is a
central online security interest registry of India.
 It was primarily created to check frauds in lending
against equitable mortgages, in which people would
take multiple loans on the same asset from different
banks.
 A Government company licensed under section 25 of
the Companies Act, 1956 having its Registered Office
at New Delhi.
 According to the government's directives, financial
institutions must register details of security interests
created by them with CERSAI within 30 days of its

General Banking bits

Very Very useful general banking MCQs

1. ______is a money market instrument, which enables collateralized short term borrowing through Govt. securities: Repo

Rate.

2. While issuing DD of Rs.50,000/- and above what should not be accepted: By cash

3. Call option stands for: Right to Buy but without obligation to buy.

4. ˜Call Money market refers to the market for short term funds ranging from _____: Overnight funds

5. ˜In Ultra Small Branches, a designated offi cer will visit the connected to Bank’s central server (CBS): Bank discretion.

6. ˜Maximum deposit in PPF in a FY: Rs.1,50,000

7. CRR decided by: RBI

8. ˜Public Debt Office (PDO) is an ______: Autonomous body and Investment Banker to Central Govt.

9.Clean Audit Report means : An audit report without any qualifications

10. ˜What is full form of USB: Ultra Small Branch.

11. cross selling: Offering banks products to existing customers

12. What is callable security: which can be called at any predetermined date.

13. Under Atal Pension Yojana (APY), the Central Govt will contribute 50% of total contribution or Rs 1000 whichever is lower, to

eligible subscribers account, for a period of: 5 years.

14.A bank cannot grant loan against security of which type of shares - other bank’s shares, own shares: own shares.

15.A cheque will be valid for: 3 months from date of issue

16.A DD is required to be crossed with account payee crossing if the amount of DD is: Rs 20000 and above

17.A Financial that derives its value from another financial product is called: Derivative.

18.A granted power of attorney to B for operating account of A. You receive information about death of A and simultaneously a

cheque signed by B on account of A is presented for payment. What should the Bank do?: Cheque will not be paid.

19.A minor will attain majority at the age of: 18 years

20.A private limited company must have minimum ___directors?: 2

21.After 6 months of successful transaction, which facility will be provided for accounts opened under PMJDY scheme?: Overdraft

22.Age limit in PrimeMinisters Jeeven Jyoti Bima Yojna: 18 —50

23.All scheduled commercial banks to convert their opening balance sheet as at April 1, 2013 in compliance with the IFRS.

24.An officer does not require permission of Branch Manager for: making payment of a pay order which was issued on account of

purchase of furniture by the bank.

25.Appeal against decision of Banking Ombudsman can be made to: Deputy Governor RBI.

26.Application for information under RTI Act 2005 should be disposed off within: 30 days

27. As per Atal Pension Yojana (APY), the minimum age of joining the scheme is 18 years and maximum age is and the age of

exit and start of pension would be 60 years: 40 years

28.As per Atal Pension Yojana (APY), the minimum period of contribution by the subscriber

29.As per KYC guidelines, Demand draft of how much amount cannot be issued against cash?: Rs 50,000 and above

30.As per latest change, what is the maximum PPF contribution that can be paid in a F.Y?: Rs 150,000

31.As per Official Language Policy, in Region "C", how much percentage of the Sign Boards should be in Hindi?: No specific target.

32.As per Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme, all saving bank account holders are entitled to join the scheme in

the age between: 18 to 70 years.

33.As per RBI guidelines, Base rate is to be reviewed by bank on _______: Quarterly basis.

34.As per RBI Guidelines, the charges for closure of bank account before stipulated period should not exceed: not applicable as

banks are free to fix account closure charges

35.As per RTI Act, information is required to be given by public authority within how many days?: 30days

36.As per RTI Act, information related to life and liberty should be submitted within: 48 hrs.

37.As per section 107 and 108 of Indian Evidence Act, a person can be presumed to have died if he is missing for : 7 years

38.As per Supreme Court who cannot be a partner? HUF.

39.At present, who is the Governor of RBI?: Dr Raghuram Rajan

40.Atal Pension Yojana (APY) offers fixed amount of pension ranging between depending upon the contribution which will be based

on the age of joining the APY: Rs 1000 to Rs 5000

41.Balance lying in the account of a company. When winding up proceedings of the company started funds in the account will be at

disposal of: Official Liquidator

42.Bank Customer relation in safe custody: Bailee- Bailor.

43.Banker customer relationship in standing instruction: Agent and Principal

44.Banking Codes and Standards Board of India (BCSBI) is a – (a) subsidiary of RBI (b) Department of Ministry of Finance (c)

Department of Indian Banks Association: None of these as it is an independent and autonomous watch dog to monitor and ensure

that the Banking Codes and Standards adopted by the banks are adhered to.

45.Banks are required to maintain Minimum and maximum CRAR of: Min 9% in India. There is no maximum.

46.Banks should disclose the details of fees/remuneration received in respect of the Bancassurance business undertaken by them, in

the ‘Notes to Accounts’.

47.BCSBI is affiliated or regulated by? An independent body

48.Best indicator of country's growth?: GDP

49.Bharathi Airtel tie up with which bank regarding payment bank?: Kotak Mahindra Bank.

50.Break even point: Level of sales at which there is no profit no loss

51.Broad money is represented by: M3.

52.Business correspondent appointed by bank work as- (a) Bank dealers; (b) Agent of the Bank (c) Customer's agent; (d) RBI agents

(e) RRB Agents (f) Trustees of customer: Agents of the bank.

53.Business correspondent in bank are for banking business: Bank is the Principal and correspondent is the Agent.

54.Call money is available for: one day

55.Call option stands for: Right to Buy but without obligation to buy.

56.CAMEL rating is done by: RBI to judge the health of banks

57.Capital account convertibility means the freedom to convert to financial assets in to foreign financial assets and vice versa.

58.Capital adequacy ratio related to? : CRAR- capital fund.

59.Carbon credits relates to: environment

60.CARE STANDS FOR : CREDIT ANALYSIS & RESEARCH LTD

61.Certificate of incorporation issued by: Registrar of Companies

62.Chairman of SEBI: U K Sinha.

63.Clayton’s Rule is related to which of the following rights?: Right of Appropriation

64.Clean Audit Report means : An audit report without any qualifications

65.Contact less Debit Card has been issued by: ICICI Bank.

66.Contract of Insurance is a contract of: Indemnity.

67.Contract to perform the promise or discharge the liability of a third person in case of his default can be termed as - (a)Guarantee;

(b) Indemnity; (c) Contingency; (d) Subrogation: Guarantee.

68.Cost push inflation is due to: High cost of production

69.Counter Cyclic Buffer required as per Basel III will be made at: normal times

70.CP is issued for amount of: Rs.5.00 lac and multiples of Rs 5 lac.

71.CPPC STANDS FOR : CENTRAL PENSION PROCESSING CELL

72.Cross selling: Offering banks products to existing customers

73.CRR decided by: RBI

74.CRR is based on which act: Sec 42(1) of RBI Act

75.CRR is calculated on: net demand & time liability.

76.Current account operated by finance director of a limited compnay. Cheque signed by him presented for payment after his death:

Cheque should be paid

77.Customer day is observed by banks at what periodicity?: once in a month (15th day of every month)

78.DEATH CLAIM SETTLEMENT IN HOW MANY DAYS? : 15 DAYS

79.Delayed collection beyond abnormal period: SB Rate + 2%.

80.Distribution of Insurance products as Corporate Agents is called: Bancassurance

81.DRP: Disaster Recovery Plan

82.DSB Returns relate to: Off Site Surveillance

83.Duplicate DD to be issued in how many days?: 14 days from the date of request

84.Elasticity of Demand is least in the case of: Items of necessity.

85.Existing total No. of RRBs as on 31-03-2012: 82

86.Expand IFRS -International Financial Reporting System

87.Expand the abbreviations GAAS: Generally Accepted Auditing Standards

88.Facility for Exchange of Notes and Coins: The facility of exchange of cut/mutilated banknotes, in addition to soiled notes and issue

of good quality clean banknotes/coins, should be made available at all bank branches (including those of co-operative banks and

RRBs). This facility should be provided to all members of public without discrimination on all working days

89. FIR is required to be filed in case where the counterfeit notes found are acknowledgement is to be obtained from the concerned

police authorities: Five pieces and above.

90.First Unique Identification Card (Aadhar card) was issued in which state – Maharashtra; Sikkim; Manipur; Karnataka?:

Maharashtra ( To Ranjana Sonawne of Tembhli village in Maharashtra)

91.For counterfeit notes a consolidated report as per prescribed format to be submitted to police authorities if in a single Txn note

is: five pieces or more in one transaction and if four pieces then consolidated report through nodal office to local police station.

92.For creation of Equitable mortgage, the town for deposit of title deeds to be notified by – (a)State Govt; (b) RBI; (c) Central Govt;

(d) Bank: State Govt

93.For injection of liquidity Txn done by RBI: Repo Rate.

94.For seeking information under RTI what is not required?: Reason for seeking information not to be disclosed.

95.For Ultra Small Branches a designated officer will visit the village on a prefixed date and time every ______with laptop and will be

connected to Bank’s central server (CBS): Week

96.Forged currency note: not to be returned & should be impounded

97.Fraudulent Draft presented and paid, who is to lodge complaint: Paying banker

98.FSDC: Financial Stability and Development Council

99.Full form of FDI: Foreign Direct Investment

100. Full form of IRDAI is: Insurance Regulatory & Development Authority of India.

101. Full form of MUDRA: Micro Units Development and Refinance Agency Ltd (MUDRA)

102. Full form of NIM: Net Interest Margin

103. Full form of Nrega: National Rural Employment Guarantee

104. Full form of PRAN?: Permanent Retirement Account No

105. Funds received in Consolidated Fund of India are maintained with: RBI (Reserve Bank of India is the main banker of the

Government and other authorised Banks function as its agents while handling Government transactions).

106. General insurance works on which principle: Principle of utmost faith.

107. Gift City: Gandhi Nagar, Gujarat;

108. Govt securities are known as: Gilt edged securities

109. Govt. infused capital in 9 PSBs in the beginning of 2015 amounting to: Rs.6990 crore

110. Green revolution is related to production of : Wheat and Rice

111. Growth of people in a country is reflected in: real per capita income

112. Guidelines on having Investor Protection Funds by Stock exchanges issued by: SEBI.

113. Head Office of Asian Development Bank is located at: Manila (Philippines)

114. Head Office of International Labour Organisation is located at: Geneva

115. Head office of NABARD is located at: Mumbai (S!DBI Head Office at Lucknow)

116. How much exemption from income is allowed as per section 80 C of Income Tax Act for the financial year 2015-16?: Rs

150,000

117. Hyper inflation- when a country experiences very high and usually accelerating inflation. The general price level within a

specific economy increases rapidly as the functional or internal currency, loses its real value very quickly.

118. IBPP STANDS FOR : INTERNET BILL PRESENTATION & PAYMENT

119. ICAAP full form: Internal Capital Adequacy Assessment Process.

120. If a Garnishee Order is received by the bank in which amount to be attached is not mentioned, what should the bank do?:

Full amount to be attached

121. If there is delay in reporting to RBI by currency chest or there is double/excess reimbursement, what is the rate of

interest charged by RBI?: Bank rate+2%.

122. in 1969, the 14 Bank Nationalised. At that time the Prime Minister of India: Smt. Indira Gandhi

123. In a partnership formed under Indian Partnership Act 1932, what is the liability of a partner?: Partner is liable jointly and

severally i.e. as partner as well as in his personal capacity. Therefore, liability is unlimited

124. In which type of charge possession is with creditor and ownership is with debtor?: Pledge

125. Income Rs.1.00 lac- Tax Rs.0.10 lac, Income Rs.2.00 lacs: Tax Rs.0.30 lacs, Income Rs.0.50 lac-Tax Rs.0.03 lac-This is

example of Progressive Tax

126. Inflation in India is measured on the basis of : Wholesale Price Index

127. Insurance amt in PMJDY: Rs 1 lac.

128. Insurance sector in India is regulated by: IRDA

129. Internal audit is meant for : internal operational check ups

130. Investment Fluctuation Reserve is calculated on which type of security? Available for Sale category and Held for Trading

category.

131. Investment Fluctuation Reserve is maintained on securities classified as: "Held for Trading" and "Available for Sale '

132. Investment Fluctuation Reserve is part of which type of capital: Tier I Capital.

133. Islamic banking has the features of : Conservative banking

134. CMD of a public sector bank is appointed by: Central Govt.

135. Issue of Rs 5 coins to commemorate the occasion of "150th Birth Anniversary of Swami Vivekananda": The Government of

India has minted the above mentioned coins.

136. Issue of Rs 5 coins to commemorate the occasion of "60th year of India Government

137. Job rotation for clerical staff should be done in every ______: 6 months.

138. Kisan Vikas Patra scheme was discontinued in 2010 due to which reason?: Fraud

139. Kite flying means accommodation receipts and payments and not genuine trade transactions

140. KV Kamat has become first chairman/President of which bank?: New Development Bank (NDB) of BRICS

141. LAFAR is submitted by whom?: Statutory Auditor

142. Letter received in Hindi in Region B, answer to be given in %age: 100%

143. LFAR returns relate to: Statutory audit

144. Life Certificate of pensioners is taken in which month?: November

145. Loan should not be granted to a director of the bank against: shares of own bank ( Loan can be granted against bank’s own

deposits; insurance policy; govt security).

146. Main Objective of Infrastructure Development Corporation is : Development of infrastructure of the country.

147. Marginal standing facility rate: 7.75%

148. Maximum period for filing case with Ombudsman: 12 months from receiving reply from bank

149. May I help you counter on how much staff: 10 and above.

150. Meeting of the Official Language Committee is held: Quarterly

151. MGNREGA: Mahatma Gandhi National Rural Employment Guarantee Act

152. MIN SUBSCRIPTION IN PPF CANNOT BE LESS THAN: Rs.500/-

153. Minimum amount of CD – Rs.1. lakh

154. Minimum and Maximum amount that can be deposited in PPF account is _____: Minimum Rs. 500/- & Maximum Rs. 1.50

lacs.

155. Money market mutual funds are regulated by: RBI

156. Mutual fund Market regulated by: SEBI

157. Name of device used by Business Correspondents: Biometric device.

158. Net Interest Income is Equal to: Interest received on assets о /ŶƚĞƌĞƐƚ ƉĂLJŵĞŶƚƐ ŽŶ ůŝĂďŝůŝƟĞƐ

159. New name of Planning Commission: “National Institution for Transforming India” or “NITI”

160. NITI full form: National Institution for Transforming India (Chairman PrimeMinister; Dy Chairman Arvind Panagariya).

161. Nobel Price for Microcredit: Muhammad Yunus

162. Number of directors in a public limited company can be: between 3 to 15. For more than 15, special resolution passed by

shareholders is required

163. Payment of DD more than 20000 only by crediting to account and not in cash as per: RBI guidelines

164. PERIODICITY OF CUSTOMERMEET IN A BRANCH: MONTHLY.

165. Perpetual Non redeemable preference share is a part of: Tier -1 capital

166. Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme offers a life insurance cover of: Rupees 2 lakh

167. Premium in Prime Minister Suraksha Bima Yojana: Rs.12 per year and claim available is Rs.2 lac in case of accidental death

only.

168. Primary Deficit is Fiscal deficit?: Always less

169. Purchaser of DD cannot do the following: Stop the DD

170. Rating of Bank is carried by RBI on CAMELS criteria, what do “C” stands for? Capital Adequacy.

171. RBI at which rate purchases or rediscounts B/E or other Commercial Bks: Bank Rate (7.75%)

172. RBI can issue bank note upto: Rs 10000

173. RBI gives credit to bank on which rate: Repo rate

174. RBI Governor's main concerns in monetary Policy: Inflation and Fiscal Deficit

175. RBI has issued star series notes for replacement of wrongly printed currency notes. Currently, these notes have been

issued in the denomination of : Rs 10, Rs 20, Rs 50, Rs 100.

176. Regulator of Capital market: SEBI

177. Reporting time before 15 minutes from starting of public dealings in: Metro/urban/Semi Urban & Rural area.

178. Revaluation Reserve discounting factor to be taken to which capital: 55% & Tier II Capital.

179. Review of RBI credit and monetary policy: Bi-Monthly

180. RTI: Person seeking information need not give reason as to why he is seeking the information.

181. Sabbatical can be availed maximum: 24 months and two times in your tenure.

182. Safe custody of Articles comes under which act: Indian Contract Act

183. Safe deposit locker – maximum deposit that can be asked is: 3 year advance rent plus locker breaking charges.

184. SAFTA is related to :TRADE

185. Security officer visit for high risk branches: Once in a quarter.

186. Sensex of 30 scrips is related to: Bombay Stock Exchange (BSE)

187. Shares transferred in electronic form: Dematerialization.

188. Spread in the context of bank profit loss account means: Interest earned - interest expended

189. Statutory Audit of banks is done as per provisions of: Banking Regulation Act

190. Subordinate Debt should not be more than % of tier-I capital? 50%

191. Subordinated debt instruments together with all other instruments of Tier - II capital are to be limited to ___ of Tier I: 100%.

192. Subordinated Debt which is a component of Tier II capital, is shown in the balance sheet as a part of: Other Liabilities and

Provisions on the liability side

193. Subprime crisis means : Problem created by lending to borrowers not meeting the credit rating criteria.

194. The Branch Level Customer Service Committee may meet to study complaints/ suggestions, cases of delay, difficulties

faced / reported by customers / members of the Committee and evolve ways and means of improving customer service: at least

once a month

195. The charge levied by banks for under utilization or non utilization of sanctioned CC/OD limits is called: Commitment charge.

196. The Committee on Listing of Stock Exchanges was headed by Dr Bimal Jalan. The Committee has recommended against

listing of Stock Exchanges.

197. The country of Euro Zone facing crises is: Greece and Cyprus (latest Cyprus)

198. The liability of Introducer in case of fraud by the customer: No legal liability

199. The main source of infrastructure finance are: FDI investment, Pension funds, Insurance funds.

200. The police seeks information regarding conduct of an account being maintained in your branch in connection with some

investigation. Can the bank pass on the information? : Yes, if the information is asked by an official of the rank of incharge of Police

Station or above and in writing.

201. The present Bank Rate is: 7.75%

202. The recent committee on urban coop banks was headed by: R. Gandhi

203. Tier I capital also known as: core capital.

204. Tier II capital can be maximum up to : 100% of Tier -1 capital.

205. Total number of Banking Ombudsman in India: 15

206. Transfer of interest in specific immovable property to create security for a debt is called: Mortgage

207. Treasury bill is issued for: 91 days,182 days,364 days

208. UCBs will start TDS at source if interest on term deposit in a financial year is more than Rs.10,000/- from which date: 1st

June 2015

209. Unclaimed deposits with banks which have not been claimed for last 10 years will be transferred to: Depositor Education

and Awareness Fund.

210. Under new pension scheme- minimum subscription in a year: Rs.6000 in a year ( min 500 at one time and for max there is

no upper limit)

211. Under Pardhan Mantri Suraksha Bima Yojana (PMSBY) Scheme, the uniform premium amount of Rs plus service tax

should be applicable per annum per person: Rs 12

212. Under PMJDY Scheme announced by PrimeMinister the debit card will be issued to every account holder. The type of debit

card will be: Rupay Card;

213. Under PMJDY, what is the time limit for lodging a claim in respect of the accident as covered under accident insurance

cover:Within 90 days of accident.

214. Under Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY) Scheme, the uniform premium amount of is

applicable per annum per member: Rs 330

215. Under Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) scheme, the individual is eligible to join the scheme at the age

between: 18 years to 50 years

216. UNDR NPS MINIMUM SUBSCRIPTION IN A YR : Rs.6000

217. Uniformity in Intersol Charges: Banks should follow a uniform, fair and transparent pricing policy and not discriminate

between their customers at home branch and non-home branches. Accordingly, if a particular service is provided free at home

branch the same should be available free at non home branches also. There should be no discrimination as regards intersol charges

between similar transactions done by customers at home branch and those done at non-home branches. Cash handling charges may

not be included under intersol charges

218. Upon finding the counterfeit currency note on the counter, the action of the bank should be: Impound the currency note

but credit full amount to customer. Receipt not to be issued to depositor.

219. Voting rights to an individual shareholder in Private banks not to exceed: 10 % (being increased to 26%)

220. What are the total number of digits in Aadhar Card: 12

221. What does LAF stands for_____: Liquidity Adjustment Facility.

222. What is a special purpose vehicle? A special purpose vehicle is a legal entity (usually a limited company of some type or,

trust or a limited partnership) created to fulfill narrow, specific or temporary objectives. Its operations are limited to the acquisition

and financing of specific assets.

223. What is Accrual concept: Every income or expense is taken in to account when becomes due irrespective of the fact

whether it is received or paid or not.

224. What is age limit in PMJeeven jyoti Bima yojna?: Eligible all saving accounts holder in the age of 18 to 50 years; Benefits

Rs. 2 lac on death due to any reason; Premium – Rs. 330 per annum per member.

225. What is Certificate of Incorporation?: Certificate issued by Registrar of Companies to a limited company, which is a

conclusive evidence of existence of company as a separate body corporate.

226. What is Debt securitization: Converting illiquid financial assets in to liquid marketable securities.

227. What is factoring?: Purchasing of Book debt

228. What is forfaiting?: Without recourse discounting of export bills

229. What is full form of FDI?: Foreign Direct Investment

230. What is full form of GDP?: Gross Domestic Product

231. What is full form of GST?: Goods and Service Tax

232. What is full form of IFRS?: International Financial Reporting Standards.

233. What is full form of ULIP?: Unit Linked Insurance Plan

234. What is guarantee corpus in MUDRA bank or funds allocated for MUDRA: Rs 20000 crore

235. What is Hybrid debt instrument? a) Debenture b) Bond c) Preference

shares d) Convertible Bonds.

236. What is incorrect about RTI?: Reason for seeking information to be mentioned in RTI application

237. What is meant by 'sensitivity' in economics terms? Sensitivity analysis (SA) is the study of how the variation (uncertainty) in

the output of a statistical model can be attributed to different variations in the inputs of the model. It is a technique for

systematically changing variables in a model to determine the effects of such changes

238. What is Personal Accident insurance cover for death and permanent disability due to accident in PrimeMinister Jan Dhan

Yojana (PMJDY): Rs.1.00 Lac

239. What is rate of Premium in Pradhan Mantry Suraksha Bima Yojana (PMSBY)?: Premium payable Rs. 12 per annum per

member; sum insured Death / permanent disability Rs. 2 lacs; Partial disability Rs. 1 lac.

240. What is short selling?: Selling securities by a dealer which he does not possess at the time of sale.

241. What is the age limit for coverage under Prime Minister Suraksha Bima Yojna (PMSBY): 18 years to 70 Years

242. What is the amount of insurance cover in case of PrimeMinister Jeevan Jyoti Bima Yojan (PMJJBY): Rs 2 lakh

243. What is the cut off point for reporting of Non Cooperative Borrowers – Rs.5. Crore and above.

244. What is the date for final implementation of Basel III?: 31.03.2019

245. What is the effect of Bonus Issue of Shares on Debt-equity ratio? No effect at all as neither there is a change in term liability

nor in net worth of the company.

246. What is the full form of QIP?: Qualified Institutional Placement.

247. What is the full from of GIFT city?: Gujarat International Financial Tech City.

248. What is the impact of increase in Inflation rate?: Purchasing power decreases

249. What is the initial tax exemption limit for Normal Senior Citizens i.e. aged between 60 years to less than 80 years? Rs 3 lakh

250. What is the liability of a bank in case of payment of forged cheque?: Bank is liable to drawer for having made payment

without authority as also for wrongful dishonor of another cheque due to insufficient funds.

251. What is the lock in period for deposits under PPF scheme: 15 years

252. What is the main concern of Indian Economy today?: Rising Inflation

253. What is the maximum age of Govt’s nominee on Board of Directors of a bank?: 70 years

254. What is the maximum amount for which award can be given by Banking Ombudsman in cases other than complaints

relating to credit card: Rs 10 Lac

255. What is the maximum amount of award that can be given by Banking Ombudsman in case of credit cards?: Rs 1 lakh

256. What is the meaning of delegation? Delegation means the granting of authority subordinates to operate within the

prescribed limits. It means subdivision and sub-allocation of powers to the subordinates in order to achieve effective results.

Authority can be delegated but responsibility cannot be delegated.

257. What is the meaning of financial closure? Financial Closure occurs when there is legally binding commitment of private

sponsors to mobilize funding or provide services.

258. What is the minimum paid capital required for setting up a payment bank?: Rs 100cr

259. What is the nature of business of Insurance Co: indemnifying the insured, collective sharing of risks

260. What is the objective of selling mutual fund product by a bank?: To earn non interest income

261. What is the percentage in Region A to bring training materials bilingually?: 100%

262. What is the period of 12th Five year plan :2012-2017

263. What is the Purpose of nomination? To settle claims easily and quickly in case of death of depositor

264. What is the reason for allowing appointment of a Non Banking Financial company as BC?: For increasing financial inclusion.

265. What is the relation between debenture holder and company: Creditor and debtor

266. What is the relation between purchase of a DD and Bank?: Creditor and Debtor

267. What is the relationship between bank and customer in case of Garnishee order?: Debtor and Creditor

268. What is the role of nominee in term deposit?: He is trustee of legal heirs

269. What is the Service Charge for a remittance of Rs.20,000/- to Nepal if payee not customer of NSBL: Rs 100

270. What is the stake of Central Govt., Sponsoring Bank and State Govt. in RRB capital structure: 50:35:15.

271. What is the time within which death of account holder under Prime Minister Jan Dhan Yojna (PMJDY) should be advised to

bank? 30 days

272. What is the transaction code no for DD in the MICR cheques: 16

273. What is Variable cost:Which changes with production like Raw material, wages, power etc.

274. What refers to P-Notes: Participatory Notes used by Foreign Institutional Investors for investment by overseas investors

who are not registered with SEBI.

275. What right is available to paying bank in respect of DD - stop payment, cancellation, revalidation: revalidation

276. What should the minimum holding of Government in public sector banks?: 51%

277. What was the target for opening accounts under PrimeMinister Jan Dhan Yojana which was to be achieved by 26 Jan 2015?

Initially 7.5 crore accounts which was later increased to 10 crore accounts.

278. When a bank in addition to accepting deposits and making advances, provides various other types of financial services, it is

called: Universal Banking

279. When a complainant receives copy of award from Bank Ombudsman, within how many days, he is required to give his

acceptance?: 30 days from date of receiving the copy of award.

280. When banks borrow fund for overnight, what is it called: call money

281. When does the right of a nominee start in case of deposits? On the death of all account holders.

282. When is customer day celebrated : 15th of each month

283. When letter of administration issued: When a person dies intestate.

284. When remittance done to currency chest, counting in front of bank officials will be done for denomination of: Rs.500 and

Rs.1000 notes.

285. Which company has got license to start new private sector bank in the year 2014?: Bandhan Financial Services Ltd.

286. Which describes insurance business most?: Disaster risk cover.

287. Which is example of Direct Tax: Income Tax

288. Which is not the function of ALCO?: Fixing Budgets and Targets

289. Which is the central bank of India? : Reserve Bank of India.

290. Which is the first Credit information company of India?: COL

291. Which is the largest source of liquidity in equity market? FII

292. Which of the following can not be done by the purchase of a Demand Draft – (a) Stop payment of DD; (b) Obtain duplicate

DD in case of loss; (c) Getting the DD revalidated; (d) endorse the DD: Stop payment of DD.

293. Which of the following does not come under Tier II capital? a) Capital reserves b) Undisclosed reserves c) Revaluation

reserves d) Cumulative Perpetual shares: Capital Reserves.

294. Which of the following does not have share in RRB? (a) Sponsor Bank (b) Central govt (c) State govt (d) Nabard: Nabard.

295. Which of the following has become new member of Asian Clearing Union: Maldives Monetary Authority. (Other members

are Bangladesh Bank, Royal Monetary Authority of Bhutan, Reserve Bank of India, Central Bank of the Islamic Republic of Iran,

Central Bank of Mynamar, Nepal Rashtra Bank, Central Bank of Sri Lanka, State Bank of Pakistan)

296. Which of the following is a Direct Tax - Excise duty, custom duty, service tax, VAT, gift tax: Gift Tax

297. Which of the following is an indirect tax? Sales Tax

298. Which of the following is Chairperson of NABARD: Sh. Prakash Bakshi

299. Which of the following is index of National Stock Exchange – (a) Nifty; (b) Sensex; : Nifty

300. Which of the following is the financial capital of India – Delhi, Ahmedabad, Mumbai: Mumbai

301. Which of the following will be reduced with increase in inflation? (i) Purchasing Power of money (ii) Interest rate (iii) Cannot

say (iv) CRR (v) None of these: Ans is Purchasing power of Money.

302. Which of the following-is a subsidiary of Standard & Poor? CRISIL

303. WHICH OF THE ITEMS WILL NOT BE AN ASSET IN BANKS BAL SHEET – ADVANCES/FIXED ASSET/ DEPOSITS/

: Deposits

304. Which one is not under core sector: automobile

305. Which sector has highest share in GDP of India?: Services

306. Which tax has been abolished in Budget 2015-16?: Wealth tax

307. Which type of charge to be created on Bank’s FD?: Assignment

308. While giving guarantee favouring stock exchange on behalf of brokers, minimum margin should be (a) 50 % out of which

minimum 25% should be cash margin (b) 50 % out of which minimum 20 % should be cash margin (c) 50 % out of which 10 % should

be cash margin: Ans is (a)

309. While increasing or decreasing interest rate, we often hear basis point. 100 Basis point will be equal to: 1 %.

310. Who can stop payment of a Demand Draft?: Nobody

311. Who decides Saving Bank rate: Bank- ALCO committee.

312. Who has never been Governor of RBI – (a) C Rangarajan; (b) Y V Reddy; (c) Bimal Jalan; (d) Pratip Kumar: Pratip Kumar

313. Who headed the committee appointed by RBI for financial inclusion?: Nachiket Mor (The Committee on Comprehensive

Financial Services for Small Businesses and Low Income Households)

314. Who is Drawee in case of DD - paying branch, collecting bank, issuing branch; purchaser, holder?: Paying branch of issuing

bank.

315. Who is not promoter of CIBIL: RBI....

316. Who is regulator of commodity market in India? 1)sebi 2) Ncedex 3) mcx 4) Forward Market Commission: Forward Market

Commission.

317. Who is the regulator of capital market?: SEBI

318. Who is the regulator of insurance sector?: IRDA

319. Who is the Regulator of LIC: IRDA

320. Who issue Garnishee Order: Court

321. Who was President of India before Ms Pratibha Patil: A P J Abdul Kalam

322. Who will decide Base Rate of a Bank?: Bank itself.

323. Wholesale Price Index is calculated on which basis?: Weekly basis for food inflation and monthly for aggregate inflation.

324. Why International Financial Reporting System (IFRS) should be implemented: For comparison of financials of companies

operating in two different international jurisdictions.

325. Within how many days appeal against Ombudsman can be filed?: 30 days

326. Within how many days, appeal can be made by a bank against the Award of Banking Ombudsman to the Appellate Authority

i.e. Deputy Governor RBI: 30 days from receiving the acceptance from customer

327. You need to issue a Demand draft for Rs 10,000 favouring Mr X of Chandigarh.Which one of the following will not be the

option while issuing DD – (i) Payee will be Mr X or Bearer (ii) Payee will be Mr X Chandigarh (iii) Payee will beMr X State Bank of India

A/C 

Current affairs on 23.03.2019

Today's Headlines from www:

*Economic Times*

📝 8.96 lakh jobs created in Jan, 76.48 lakh in last 17 months: EPFO payroll data

📝 Ola cabs banned in Bengaluru for 6 months for licence violation

📝 Jet Airways' lenders eye substantial stake in airline

📝 RIL denies sidestepping US sanctions on Venezuela

📝 Jio gets NCLT 'Ok' to demerge fibre, tower assets

📝 Property distress in India has Piramal prowling for acquisitions

📝 USFDA clears Zydus Cadila's generic mental disorder drug

*Business Standard*

📝 Govt crosses divestment target for 2nd year in a row; rakes in Rs 85,000 cr

📝 Amazon builds up war chest to take on Grofers, Flipkart in grocery space

📝 HMD Global looks at local components sourcing for Nokia in India

📝 Reliance Industries sets up company for real estate development

📝 BSNL resists erosion in market share, private players give up

📝 Uber Technologies picks NYSE for its mega initial public offering in April

📝 Govt gets bids worth Rs 28,000 cr in 5th CPSE ETF, to retain Rs 10K cr

📝 BlackRock to buy French software firm eFront for $1.3 billion

📝 After Donald Trump barbs, General Motors to make $1.8 billion investment

*Financial Express*

📝 Govt warns mills of action for selling sugar below MSP

📝 PFC plans to pay govt Rs 14,500 crore for stake in REC

📝 GVK Airport Holdings acquires 12 crore MIAL shares for Rs 924 crore

📝 Essar to start shale activity in Raniganj by drilling 20 pilot wells

📝 Forex reserves up by $3.6 billion to $405.6 billion

📝 Monetary Policy Committee to meet six times during 2019-20, says RBI

📝 Relief to exporters; govt extends IGST, compensation cess exemption for various export plans

*Mint*

📝 Nokia plays down compliance issues after shares drop

📝 Sebi issues valuation of debt securities rated below investment grade

📝 SBI raises ₹1,251 crore by issuing Basel III-compliant bonds

📝 Dell plans to expand retail presence across 1,300 cities, towns

📝 Power Grid Corporation pays ₹1,600 crore interim dividend to govt for 2018-19

📝 NSEIT acquires cybersecurity company Aujas

📝 Tata Power SED bags ₹1,200 crore contract from defence ministry

📝 Fitch cuts India GDP growth forecast for FY20 to 6.8%

📝 EU gives Theresa May another two weeks to avoid a no-deal Brexit.

Export Import credit MCQs

EXPORT IMPORT CREDIT MCQs

1. Minimum andmaximum amount up to which the Gold Credit card can be issued to exporter is Rs

________ lac and Rs lac. : (a) 100,1000 (b) 50, 500 (c) 100, 5000

(d) 20,200 (e) None of these as it is based on anticipated turnover.**

2. Aspertheexchangecontrolregulations,thepaymentforexportsshouldingeneralberealizedwithina

periodof:(a) 12months fromdate of shipment** (b) 3months from date of shipment

(c) 6months fromthe date of shipment (d) 1month fromdate of shipment

(e) 45 days formdate of shipment

3. Units in a special economic zone are permitted to realise and repatriate to India the full export value of

goods or software within a period of......................................... from the date of shipment.

(a) 3months (b) 6months (c) 180 days (d) 360 days (e) none of these as there is no time limit*

4. In respectof shipmentsmade toIndianownedwarehouses abroad establishedwithpermissionof RBI,

export proceeds shouldbe realizedwithin:

(a) 6 months (b)3 months (c) 9 months (d)15 months* (e) 150 days

5. RBImonitorsoverdueexportbills-not realizedwithinthestipulatedtimeby calling for ahalf yearly

statement fromADs referredtoas : (a) BEF (b)XOS** (c) GTE-1 (d) ST-9 (e) ENC

6.Packing credit advances mean :

advances granted to industrial units for packing of manufactured goods for sale in Indiaadvances granted to eligible exporters for purchase/manufacture/processing/transporting/packing etc. of goods meant for export*

(c) advancesgrantedtoimporterstoenablethemtostoreandsubsequentlysellimportedgoodslocally

(d) any one or more of the above (e) none of the above.

7. To be eligible for packing credit advances the customer :

(a) should not be in the caution list of RBI or specific approval list of ECGC

(b) must be holding importer/exporter code number allotted byDGFT

(c) should be recognised export house (d) all above (e) both (a) and (b)**

8. Packing credit advances is normally allowed for :

(a) 90 days (b) 60 days (c) 360 days (d) 180 days (e) as per requirement of the exporter**

9. `Normal Transit Period ' in the context of export financemeans:

(a) the number of days the documents take to reach destination

(b) the gap between period taken by the ship and the documents to reach destination

(c) the number of days taken by a ship to complete a voyage

(d) the number of days fixed by FEDAI and is the average period normally involved from date of negotiation to credit to

NOSTRO account.**

(e) either (a)or (b)

10. For facilities grantedupto30.6.2010, rateof interestonpost shipment credit inrupeesupto180days in

respectofusancebills is :

(a) 12% (b) 15% (c) not exceeding BPLR

(d) not exceeding BPLR minus 2.5% (e) not exceeding BPLR plus 1.5%**

11. Refinance for export credit fromRBI is available for howmany days?

(a) 90 days . (b) 180 days** (c) 360 days (d) 270 days- (e) None of these

12. Refinance against eligible export finance is available from:

(a) RBI* (b) IDBI (c) ECGC (d) Exim Bank (e) None of these

13. On PCFC refinance is available to the extent of % of outstanding PCFC.

(a) 15% (b) 50% (c) 25% (d) Nil** (e) None of these

14. Forfacilitiesgrantedupto30.6.2010ConcessionalinterestrateonPostshipmentcreditinrupeesis

permittedupto:

(a) 180 days** (b) 90 days (c) 270 days (d) 360 days (e) None of these

15. Which of the following is not correct regarding Liberalised Remittance Scheme?

(a) Amount can be remitted for capital aswell as current account transactions

(b) Maximumamount that can be remitted in a financial year is restricted toUSD200,000

(c) Remittance for gift and donationwill bewithinUSD200,000 permitted under LRS

(d) Bank can allowadvance to a resident individual formaking remittance under this scheme**

(e) None of these

16_ For outward remittance formedical expenses, estimate fromthe doctor or hospital is required if the

remittance is more than USD : (a) 1 lac (b) 5 lac (c) 10 Lac (d) none of these as it is required in all cases

17. What is themaximumamount of inwardremittance that can bedone by a resident individual?

(a) USD 1 Lac (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit

*

18. How much amount can be released for remittance abroad for education on declaration basis and withou estimate

from educational institution?

(a) USD 1 Lac** (b) USD 5 lac (c) USD 10 Lac (d) None as there is no limit

19.Which of the following is true?

(a) If a bank has oversold position, Bankwill gain if the rate of foreign currency rises.

(b) If a bank has oversold position, Bankwill gain if the rate of foreign currency declines**

(c) If a bank has oversold position, Bankwill lose if the rate of foreign currency declines

(d) If a bank has overbought position, Bankwill gain if the rate of foreign currency declines

(e) None of these

20. ADsmay allowadvance remittance for import of goodswithout any ceiling.However, if the amount of

advance remittance exceedsUSD50,00,000 or its equivalent it ismandatory to obtain-

(a) unconditional irrevocable stand byUC of an international bank of repute situated outside India

(b) guarantee froman international bank of repute situated outside India(c) guarantee of anADinIndia, if such guaranteeis issuedagainst counter guarantee of aninternational

bankof reputesituatedoutside India

(d) any one of the above (e) either (a) or (b) only***

21. BEF statement containingdetailsof remittance exceedingUSD1,00,000where evidence of import is

not furnishedwithin6months fromdateof remittance is submittedby ADs toRBIon:

(a) monthlybasisby 10thof thefollowingmonth

(b) quarterlybasisby 15thof themonthfollowing closeofquarter

(c) half yearly basis forMarch/ September by 15th of succeedingmonth

(d) half yearly basis as of June/ December by 15th of succeedingmonth **(e) none of these

22. Crystallisation of import bill under UCmeans:

(a) bill is scrutinisedwhether it is as perUC terms or not

(b) it is ensured that currency of IJC and insurance is the same or not

(c) converting bill amount into Indian rupees and deciding customer's liability on due date in case of usance**

bill and on 10th day from date of receipt in case of demand bills.

(d) none of the above as the concept is gonewith the termination of PSCFC

23. ApplicationformakingpaymenttowardsimportsintoIndiahastobemadetoauthoriseddealersby

importersin:(a) ENC (b) R-3 (c) Form A-1 *(d) Form A-4 (e) none of the above

24. Advance remittance for import of goods into India is to be allowed after obtaining guarantee froman

international bank of repute situated outside India or guarantee of an AD in India against counter-guarantee of an

international bank when amount of advance remittance exceeds:

(a) US $ 10,000 (b) US $ 25,000 (c) US $5,000 (d) US $ 15,000 (e) US $ 50,00,000***

25. How much advance remittance is allowed for import of services without guarantee of a reputed

international bank?

(a) USD 1 Lac (b) USD 5 lac **(c) USD 10 Lac (d) None as there is no limit

26. Which of the following types of Bill of Lading is not acceptable by a bank under LC?

(a) On Board (b) Clean (c) Charter Party** (d) AN of these (e) None of these

27. Interest Subvention is available on rupee export credit at the rate of 2% for loan up to Rs

but

interest rate after subvention should not be less than 7%.

(a) Rs 3 lac (b) Rs 5 lakh (c) Rs 10 lakh (d) Rs 100 lakh (e) None of these**

-28. Interest rate charged by RBI on export refinance to banks is at the rate of :

(a) Bank Rate (b) Repo Rate** (c) Reverse Repo Rate (d) Base Rate (e) None of these

29. Export Refinance is provided by RBI at the rate of __________ % of eligible outstanding export credit?

(a) 15% **(b) 25% (c) 50% (d) 100% (e) None of these

30. R Return is submitted to RBI onwhich of the following dates of themonth?

(a) 7th and 2151 (b) 15th & last day **(c) 10th, 20th and last day (d) None of these

31.Overdue import demand bills and usance bills are crystalised onwhich dates?

(a)10thday&duedate **(b)15thdayand30thday (c)30thdayand60thday(d)10thdayand60thday(e)Noneofthese

132. Which of the following is incorrect regarding export declaration forms?

(a) GR formis usedfor declaration of exports other than by postwhere customoffice not linked to EDI

(b) ExportDeclaration formis not required to be submitted for exports up toUSD25000.

(c) Softex formis used for declaration of export of software in physical or electronic form.**

(d) None of these (e) All of these

33.. Presently rate of interest on pre-shipment credit in forex (PCFC) up to 180 days is not exceeding:

(a) 200 basis points above LIBOR ***(b) 100 basis points above LIBOR

(c) 150 basis points above LIBOR (d) 50 points above LIBOR (e) 350 basis points below LIBOR

34. As per current guidelines of RBI, for loans sanctioned up to 30.6.2010, rate of interest on pre-shipment credit in rupees up to

270 days should not exceed :

(a) Bank Rate plus 2.5% (b) BPLR plus 1.5% (c) BPLR minus 2.5%**

(d) Bank Rate minus 2.5% (e) lower of (a) and (b)

35. As per the exchange control regulations, the payment for exports should in general be realized within a period of:

(a) 12 months from date of shipment** (b) 360 days from date of packing of goods

(c) 180 days from the date of shipment (d) 270 days from date of shipment

(e) 180 days from the date of receipt of consignment by the buyer in foreign country

36. Which of the following is/are not true with regard to features of Gold Card Scheme for exporters:

(a) Only exporters whose accounts have been 'Standard' continuously for 3 years are eligible

(b) Gold Card holderswill be given preference is granting packing credit in foreign currency (PCFC)

(c) Time normfor disposal of fresh applications for credit under the schemewill be 25 days

(d) Gold Card for exporters will be issued for a period of 5 years (e) none of these**

EXPORTFINANCE

Case- STUDY

An exporter approaches the popular bank for pre-shipment loanwith estimated sales ofRs.100 lakh. The bank

sanctions a limit ofRs.50 lakh,with followingmargins: Pre-shipment loan on FOB value—25%; ForeignDemandBill -

10%; Foreign usance bilis—20%.

The firmgets an order forUSD50,000 (CIF) toAustralia.On 1.1.2011when theUSD/INRratewasRs.43.50 perUSD,

the firmapproached theBank for releasing pre-shipment loan (PCL),which is released.

On 31.3.2011, the firmsubmitted export documents, drawn on sight basis forUSD45,000 as full and final shipment.

The bank purchased the documents atRs.43.85, adjusted thePCL outstanding and credited the balance amount to the

firm's account, after recovering interest forNormalTransit Period (NTP). The documents were realized on

30.4.2011 after deduction of foreign bank charges of USD 450. The bank adjusted the outstanding post

shipment advance. against the bill. Bank charged interest for pre-shipment loan@7%up to 90 days and,@8%

over 90 days up to 180 days. For Post shipment credit, theBank charged interest@7%for demand bills and@7.5%

for usance (D/A) documents up to 90 days and@8.50%thereafter and on all over dues, interest@10%.

01 What is the amount that the Bank can allow as PCL to the exporter against the given export order,

considering the profit margin of 10% and insurance and freight cost of 12%?

a) Rs.2200000 b) Rs.1650000 c) R6.1485000 d) Rs.1291950

02What is the amount of post shipment advance that can be allowed by the Bank under foreign bills

purchased, for the bill submitted by the exporter?

a) Rs.19,80,000 b) Rs.17,75,925 c) Rs.19,73,250 d) Rs.21,92,500

03 What will be the period for which the Bank charges concessional interest on DP bills, from date of

purchase of the bill?

a) 90 days b) 25 days c) 31 days d) Up to date of realization

04 in the above case, when should the bill be crystallized (latest date), if the bill remains unrealized for

over two months, from the date of purchase-(ignore holidays)?

a) On 30.4.2011 b) On 24.4.2011 c) On 24.5.2011 d) On 31.5.2011

05 What rate of interest will be applicable for charging interest on the export bill at the time of realization,

for the days beyond Normal Due Date (NDD)?

a) 8% b) 7% c) 7.5% d) 10%

Ans. 1-d 2-c 3-b 4-c 5-d Explanations:

1. FOB value =

CIF Value i.e. 50000x43.5 = 2175000

Deduct Insurance & freight 12% of 2175000 = 261000

Balance = 1914000

Deduct profit margin 10% of 1914000 =191400

Balance = 1722600

Less Margin 25% = 430650

PCL = 1291950

2. 45000 x43.85=1973250

3. Concessional• rate will be charged for normal transit period of 25 days and there after overdue

interest will be charged.

4. Crystallisation will be done when the bill becomes overdue after 25 days of normal transit period. Date of

overdue will be 25.4.2011. if bill remains overdue, it will be crystalised within 30 days i.e. up to 24.5.2011.

5. Rate of interest will be 10%as the overdue interest is stated as 10%in the question.