Sunday, 23 February 2020

MCqs for banking

1) For operating in money market, G-Sec market and forex markets, the intermediaries are required to obtain
Legal Entity Identifier by if the net worth of entity is above Rs.1000 crore (Rs.10000 million).
a) 30-04-2019 b) 31-08-2019 c) 31-12-2019 d) 30-04-2020
2) For capital adequacy purpose the risk weight for commercial real estate is?
a) 50% b) 100% c) 75% d) 125%
3) For operating in money market, G-Sec market and forex markets, the intermediaries are required to obtain
Legal Entity Identifier by if the net worth of entity is between Rs.200 crore to Rs.1000 crore:
a) 30-04-2019 b) 31-08-2019 c) 31-12-2019 d) 30-04-2020
4) BCSBI has been constituted as a? a) Joint Stock Company b) Trust c) Society d) None of the above
5) For operating in money market, G-Sec market and forex markets the intermediaries are required to obtain
Legal Entity Identifier by if the net worth of entity is below Rs.200 crore (2000 million):
a) 30-04-2019 b) 31-08-2019 c) 31-12-2019 d) 30-04-2020
6) The concept of duration analysis is used by banks in connection wi th? a) Operational risk in Basel
II b) Credi t Risk c) Asset liability management d) Market risk in Basel II
7) As per RBI ECB policy for infrastructure space, what is the min average maturity period?
a) 10 years b) 7 years c) 5 years d) 3 years
8) __________ is a standard format of Bank Identifier
Codes (BIC) for banks to identify banks and financial institutions globally?
a) RTGS b) IFSC c) NEFT d) SWIFT
9) As per RBI ECB policy for infrastructure space, there is mandatory 100% hedging when the minimum average maturity
period is: a) 3 to 5 years b) 5 to 7 years c) 7 to 10 years d) Above 10 years
10) What is the time period prescribed for preservation of records under prevention of Money Laundering Act (MLA)?
a) 2 years b) 5 years c) 4 years d) 10 years
11) Bank can open branches without RBI permission in tier-3 to tier 6 centres. These centres have population upto as
per the census 2011? a) 9999 b) 49999 c) 99999 d) 100000
12) Net stable funding ratio guidelines issued by RBI during May 2018, shall come into operation w.e.f.:
a) 01-01-2019 b) 01-04-2019 c) 01-01-2020 d) 01-04-2020
13) The maximum requirement for CRR after 2006 as per RBI Act 1934 can go up to?
a) 10% b) 13% c) 15% d) RBI Discretions
14) RBI has constituted an Internal Advisory Committee for resolution under which code?
a) Bankruptcy Code 2016 b) Insolvency Code 2016
c) Bankruptcy and Insolvency Code 2016 d) Insolvency and Bankruptcy Code 2016
15) A positive confirmation is required to be sent to remitter of funds that amount has been credited in beneficiaries
account, in case of? a) ECS and NEFT b) NEFT and RTGS c) NEFT, RTGS and ECS d) All of the above
16) RBI has released the on tap universal banking license excluding which group as eligible entities from the purview?
a) Small industrial houses b) Medium industrial houses c) Large industrial houses d) None of the above
17) Under Interest Equalization Scheme of Govt. of India, the eligible MSME exporter banks receive
interest subvention of__________ % so as to pass on the benefit to MSME exporters.
a) 2% b) 3% c) 4% d) 5%
18) Which of the following action(s) allowed by RBI regarding Gold?
a) Sell Indian Gold coins b) Buy Indian Gold coins c) Both a and b d) Neither a nor b
19) What is the minimum capital requirement under Basel III norms as per Bank for International Settlement,
prescription? a) 6% b) 8% c) 9% d) 10%
20) Transfer of govt. securities from one SGL / CSGL account to another Subsidiary General Ledger (SGL) / Constituent
Subsidiary General Ledger (CSGL) account without any consideration is called:
a) Value free transfer b ) Value free transaction c) Transaction with consideration d) Free transaction
21) The Reserve Bank of India has recently relaxed Know Your Customer norms for ____?
a) Non-Banking Financial Companies b) Insurance Companies c) Banking firms d) Broker Houses
22) To calculate capital adequacy ratio, the banks are required to take into account which of the following risks?
a) Credit risk and Operational risk b) Credit risk and Market risk c) Market Risk and Operational Risk d) Credit Risk, Market risk and
Operational risk
23) Bank has allowed a loan of Rs.4 lac to a firm, as cash credit which is running regular. The firm also has a term deposit of
Rs.5 lac and there is an attachment order on the term deposit:
a) The term deposit would be attached
b) The term deposit would be attached after recovering the outstanding balance in the cash credit account
c) The amount of term deposit above Rs.4 lac would be attached d)
d) The term deposit cannot be attached as long as banks ank loan outstands
24) As per Basel III, the risk of losses in on-balance sheet and off-balance sheet positions arising from movements
in market prices is called_____?
a) Credit Risk b) Market Risk c) Pricing Risk d) Liquidity Risk
25) Attachment order is applicable, where the relationship between the customer and the bank is that of:
a) Lessor and lessee b) Trustee and beneficiary c) Debtor and creditor d) Creditor and debtor
26) SARFAESI Act 2002 is not included which of the following aspects:
a) Securitisation of Financial Assets b) Reconstruction of Assets
c) Authority to enforce without the intervention of the court d) Setting up of Central Registry
27) Bank account of which of the following customer is covered in the low risk:
a) APublic Limited Company b) A high net worth individual c) A salaried employee d) A non-resident Indian
28) At the time of take over the bad loans from 3 banks it is found that these banks have filed suits in different DRTs.
Securitisation company wants to get these cases in one DRT, which can be permitted by:
a) Central Govt. b) Supreme Court c) DRAT d) RBI
29) Under which section of Banking Regulation Act 1949, a banking company is prohibited to grant a loan or an advance
against security of its own shares: a) 19(2) b) 20(1) c) 17(2)d) 24 (3)
30) What is the maximum period allowed to a securitised company for recovery of reconstructed financial asset?
a) 2 years b) 3 years c) 6 years d) 5 years
31) For acknowledgment of debt, the Central govt. has prescribed the payment of stamp-duty at which of the following
rates? a) Re.1.0 b) Re.2.0 c) Rs.5.0 d) None of the above
32) The interest rates under MCLR system can be reset within what period?
a) 30 days or less b) 180days OR Above c) 90days or lower d) 365 days or lower
33) Exposure ceiling for infrastructure projects in case of single and group are___ of capital fund
a) 15%, 40% b) 20%, 45% c) 20%, 50% d) 25%, 55%
34) The term guilt edged securities relates to which of the following?
a) Share of the Blue Chip Company b) Share of Public Sector Undertaking c) Mutual Fund d) Govt. Securities
35) Which of the following is not correct in respect of PPF account:
a) Scheme is operated by public sector banks and private sector banks
b) Minimum amount of deposit per annum is Rs.500
c) Maximum amount of deposit p.a. is Rs.100000 d) Account is opened for 15 years.
36) As per BASEL-III implementation in India minimum tier-1 capital must be % of risk weighted assets on
ongoing basis? a) 5.5% b) 7% c) 9% d) 11%
37) Which of the following banks can issue letter of credit to the department of Govt. of India?
a) RBI b) SEBI c) Any Private Bank with which govt. has not made arrangement
d) Any commercial bank with which govt. has made arrangement
38) A Micro Enterprise dealing with your branch has received an export order on FOB terms. In this case:
a) The cost of insurance is to be borne by the exporter
b) The cost of freight is to be borne by the exporter
c) The cost of goods and also the insurance and freight is to the account of exporter
d) Cost of insurance and freight is to borne by the importer and exporter on equal basis
39) On rent payment, TDS is to be deducted when the amount of total payment in a financial year:
a) Is Rs.1,80,000 or more b) Is more than Rs.2,40,000 c) Is Rs.1,20,000 or more d) Is more than Rs.1,20,000
40) As per BASEL-III the value of revaluation reserve is to be taken at % discount to include tier-1 capital?
a) 55% b) 75% c) 60% d) 45%
41) What is not true of the following in connection with the payment to DICGC for deposit insurance?
a) It is payable half yearly
b) Insurance is obtained on mandatory basis
c) Deposits of govt. departments are not to be got insured
d) Maximum eligible amount of deposit for insurance is restricted to Rs.1 lac.
42) The risk that the interest rate of different assets and liability may change in different magnitude is called?
a) Embedded Risk b) Maturity Risk c) Basis Risk d) Price Risk
43) Interest in agriculture advances is to be charged on:
a) Monthly basis b) Quarterly basis c) Half-yearly basis
d) Yearly basis or any of the above as per discretion of the bank
44) When the bank is selling 3rd party products which type of risk is involved?
a) Reputational Risk b) Operational Risk c) Credit Risk d) Liquid Risk
45) The quarterly return on Form 26Q, of TDS is to be submitted
a) Within 31 days, but for March by May 31
b) Within 15 days, but for March by May 31
c) Within 30 days, but for March by May 15
d) Within 30 days, but for March by May 31
46) In case of credit card the customer can lodge a complaint with the bank within a period of?
a) 15 days b) 30 days c) 45 days d) 60 days
47) If the account number, to which an amount is to be credited, has been conveyed incorrectly in an RTGS transaction,
who will be responsible:
a) Customer, if he has conveyed the incorrect details
b) Customer, irrespective of the fact whether he has conveyed the correct details or not, if indemnity has been obtained
c) Concerned bank in all circumstances
d) The settlement authority
48) On payment of brokerage TDS is to be deducted when the amount of total payment in a financial year is?
a) 50000 or more b) More than 15000 c) 2500 or more d) More than 20000
49) An Administrator is:
a) A person appointed by court, when a person dies without a will.
b) A person appointed by share holders at the time of winding up a Company
c) A person appointed at the time of insolvency of a firm
d) a and b
50) Which of the following loan is exempted from application of MCLR?
a) Loan given as export credit
b) Loan given by a consortium of banks
c) Loan given by a direct agriculture purpose
d) None of these
51) According to Banking Companies Nomination Rules 1985, nomination in favour of a nonresident person:
a) Is allowed with RBI permission
b) Is not allowed
c) Is allowed
d) a and c
52) Which of the following qualifies to be the business of financial services as per RBI guidelines under Banking Regulation
Act 1949?
a) Business of credit information companies
b) Operations of a depository under Depositories Act
c) Business of a credit rating agency d) All the above
53) Which of the following falls in the category of Non-bank financial company: (a) asset finance company (b)
investment company (c) loan company (d) infrastructure finance company (e) core investment company (f)
infrastructure debt fund NBFC (g) NBFC-micro finance institution:
a) a to g all b) a to e only c) a to d only d) a, c, d, e and f only
54) A corporate shall be eligible to issue Non-Convertible Debentures if it fulfills the following criteria (which one is not
correct):
a) The corporate has a tangible net worth of not less than Rs.4 crore, as per the latest audited balance sheet;
b) The corporate has been sanctioned working capital limit or term loan by bank/s or all-India financial institutions for minimum amount
of Rs.5 crore;
c) The borrowal account of the corporate is classified as a Standard Asset by the financing bank/s or institution/s.
d) None of the above
55) On the information that the draft has been lost, a duplicate has been issued after taking indemnity bond. The
original and duplicate are presented for payment through clearing, by two different banks on the same day. Both
the drafts have been branded with the stamp payee’s account credited. The bank:
a) Will pay the duplicate b) Will pay the original c) Will return both d) Both will have to be paid
56) When a bank grants a loan to a borrower on the basis of hypothecation of the assets, with whom does the possession
and ownership remain?
a) Possession with borrower & ownership with bank
b) Possession with bank and ownership with borrower
c) Both with bank d) Both with borrower
57) In a trust, one of the trustees who is singly authorised to operate the account has been declared insolvent. Your branch
receives a cheque drawn by him for payment.
a) You can return the cheque
b) You can pay the cheque
c) You can pay if other trustees confirm it
d) a and b
58) A usance bill of exchange is presented by the payee to its drawee Mr. NarayanDutt who accepts the same. It is endorsed
by the payee Mr. SarwanLal to Mr. Ramesh Kumar, who is a handicap. Looking into this fact, Mr. SarwanLal also writes
that in case of dishonour, he may not be given notice and would continue to be liable. Which of the following kinds of
endorsement has been made by Mr. SarwanLal:
a) Conditional endorsement
b) Facultative endorsement
c) Sans recourse endorsement
d) Blank endorsement
59) In which of the following cases, the population-group wise classification of a particular centre as per RBI, does not
match:
a) Rural: population up to 10000 b) Semi-urban: 10000 to 99999 c) Urban: 100000 to 999999 d) Metro: 10 lac and above
60) Generally interest on current account balances cannot be paid. But it can be paid in accounts in the name of:
a) Insolvent customers b) Insane customers c) Deceased customers d) All the above
61) For which among the following instruments, the amount of stamp duty can be different in different States:
a) Promissory Note b) Bill of Exchange c) Money Receipt d) Guarantee Deed
62) A fixed deposit receipt is maturing for payment on Sunday. It shall be deemed to be payable with interest on:
a) Succeeding day i.e. Monday b) Same day c) Preceding day i.e. Saturday d) Any day after that
63) A customer of a current account has deposited two cheques worth Rs.15000 which have been
sent in clearing and have been credited, but the time for returning of the clearing has yet not expired. Meanwhile a
garnishee order is received in the account:
a) Order will be applicable on the amount of cheques.
b) Order will not be applicable on the amount of cheques
c) Order will be applied after seeking confirmation from paying banker
d) Order will become applicable from next day if cheques have not been returned unpaid
64) What is the limitation period available to a holder of cheque dishonoured due to insufficiency of funds, to file suit u/s
138 of NI Act?
a) 3 years from date of nonpayment after expiry of the notice period
b) One month from date of refusal by the drawer
c) One month from date of cause of action
d) 15 days from date of nonpayment
65) The foreign shareholding in a new private universal bank, in the form of FDI, can be _____ of paid up capital:
a) Maximum 74% b) Maximum 51% c) Maximum 26% d) Maximum 24%
66) Which of the following case would not require a report to RBI, as:
a) Fraud a theft, burglary only
b) Theft, robbery only
c) Burglary, dacoity and robbery only
d) Theft, burglary, dacoity and robbery all
67. In the Interim Budget for FY 2019-20 proposals, Central Govt. has fixed the income tax exemption limit at: (which one is
wrong) a Rs.250000, b Rs.300000 for senior citizens c Rs.500000 for very senior citizens d Rs.500000 for all
68. In the Interim Budget for FY 2019-20 proposals, Central Govt. has proposed that persons with taxable income up to
Rs.____ need not pay any income tax?
a Rs.250000 b Rs.300000 c Rs.500000 d Rs.650000
69 In the Interim Budget for FY 2019-20 proposals, Central Govt. has enhanced the threshold for TDS on interest income
from deposits with banks and post offices from ___ to ____:
a Rs.10000 to Rs.30000 b Rs.10000 to Rs.40000 c Rs.20000 to Rs.40000 d Rs.10000 to Rs.50000
70 In the Interim Budget for FY 2019-20 proposals, Central Govt. has enhanced the threshold for TDS on rent payment from
___ to ___:
a Rs.180000 to Rs.210000 b Rs.180000 to Rs.220000 c Rs.180000 to Rs.240000 d Rs.180000 to Rs.250000
71 In the Interim Budget for FY 2019-20 proposals, Central Govt. has enhanced the amount of gratuity from ___ to ___
a Rs.10 lac to Rs.25 lac b Rs.10 lac to Rs.20 lac c Rs.10 lac to Rs.15 lac d Rs.5 lac to Rs.10 lac
72 In the Interim Budget for FY 2019-20, Central Govt. has proposed that interest subvention of 2% shall be available to farmer
covered by relief measures for:
a one year b 2 years c 5 years d entire period of re-schedulement
73 In the Interim Budget for FY 2019-20 proposals, Central Govt. has proposed that interest subvention of 2% and
additional subsidy of 3% for prompt payment shall be available to ___ also?
a agri clinic and agro business centres b agro and food processing c animal husbandry and fisheries activities d al l
74 In the Interim Budget for FY 2019-20 proposals, Central Govt. has proposed to credit a fixed sum to the bank accounts of
farmers with land holding up to ___, as a direct income support:
a 1 ac re b 2 acres c 1 hectare d 2 hectares
75 In the Interim Budget for FY 2019-20 proposals, Central Govt. has proposed to credit a fixed sum of Rs.__ to bank
accounts of marginal and small farmers?
a Rs.2000 b Rs.3000 c Rs.5000 d Rs.6000
76 In the Interim Budget for FY 2019-20 of Central Govt. unorganized sector workers with monthly income up to Rs. ____
are eligible to be covered under PM Sharam Yogi Maandhan Yojna:
a 20000
b 15000
c 10000
d 5000
77 In the Interim Budget for FY 2019-20 proposal of Central Govt. unorganized sector workers shall receive assured pension
of Rs.____ at age of 60 years.
a 5000
b 4000
c 3000
d 2000
78 In the Interim Budget for FY 2019-20 of Central Govt. for assured pension, the unorganized sector worker has to deposit
Rs.___ monthly, if the scheme is joined at 18 years:
a Rs.45 b Rs.55 c Rs .65 d Rs.100
79 The process of crystallisation of export bills means, which of the following:
a return of the export bills due to non-payment by the drawee
b permission to the drawee for c. delivery of goods without making payment
c conversion of the foreign currency liability into the home currency liability by selling the FC back to the exporter
d initiation of legal action against the exporter for the overdue export bill
80 A doubtful above 1 year but below 3 year loan account has a balance of Rs.8 lac. The principal security is Rs.4 lac, the
collateral security Rs.3 lac and net worth of the guarantor is Rs.4 lac. The amount of provision shall be:
a Rs.8 lac b Rs.2.40 lac c Rs.3.10 lac d Rs.4.12 lac
81 What is the highest amount of denomination of bank note which RBI can issue, as per provisions of RBI Act:
a Rs . 10 0 b Rs . 50 0 c Rs . 2000 d Rs.10000
82 Which of the following types of operations modes are permitted under the Senior Citizens Saving Scheme 2004:
a generally single account b joint mode with the spouse c joint operation with any one d a and b only
35 Mr. Akash Khanna is having his personal saving account with United Bank’s Chandigarh branch. He is also the sole
trustee of Khanna Charitable Trust and operates the account of the trust which is also maintained with the bank. In
connection with an important personal work he proposes to proceed abroad for 6 months and seeks your guidance for
smooth operations in the accounts:
a he can give mandate in favour of some of his friend or relative for operations in the accounts.
b he can execute a power of attorney in favour of a known person for operations in both the accounts
c he can give mandate or power of attorney for his personal account
d he cannot delegate the powers to any one in case of trust account and could leave some cheque leaves properly
signed for use in case of trust account
e c a nd d
83 All transactions, involving payment of interest on FCNR (B) deposits shall be rounded off to ____ decimal places:
a 4 decimal points b 3 decimal points c 2 decimal points d at bank discretion
84 Frauds of Rs.500 lac and above are to be reported to RBI on FMR-1 and a DO letter to DBS, RBI, within _____:
a 2 we ek s b 1 we e k c 3 we ek s d immediately
85 What is the maximum time limit for the banks to settle the claims in respect of a deceased depositors and release
payments to the survivors/nominees :
a 7 days b 10 days c 15 days d 30 days e no time limit
86 A partnership firm wants to open a Current Account with your branch, but it is not registered with Registrar of Firms.
a Is the registration of a partnership firm essential ?
b It is not essential as it is only optional
c It depends on will of creditors of the firm
d It depends on will of the bank
e c a nd d
88 A term deposit matured on July 12, being Sunday. It is presented for payment by the customer on Jul 13. The contracted
rate of interest is 8.5%. Bank changed the interest rate to 8% from Jul 11. In this connection which of the following
option is appropriate?
a bank shall pay interest till Jul 12 at 8.5% b bank shall pay interest till Jul 12 at 8.0%
c bank shall pay interest till Jul 13 at 8.5% d bank shall pay interest till Jul 13 at 8.0%
89 What is the maximum amount of outward remittance that can be made by an AD for capital account transaction under
Liberalised Remittance Scheme of RBI:
a not permitted for capital account transaction b USD 75000 in a calendar year
c USD 125000 in a financial year d USD 250000 per financial year
90 Under Interest Equalization Scheme of Govt. of India, the eligible MSME exporter banks receive interest subvention of
___% so as to pass on the benefit to MSME exporters.
a 2% b 3 % c 4% d 5%
91 Under National Urban Livelihood Mission (NRLM), which of the following statement is correct regarding repayment period
and moratorium period a. repayment period 3 to 7 years and moratorium as per bank discretion
b repayment period 3 to 7 years and moratorium 6 to 18 months
c repayment period 5 to 7 years and moratorium 6 to 18 months
d repayment period 5 to 7 years and moratorium as per bank discretion
92 X opened an account with your branch under the Senior Citizens Saving Scheme 2004 for 3 years. He needs the funds to
meet his medical expenses by raising a loan on the basis of security of the deposit. What precautions would be taken by
the bank:
a the loan cannot be sanctioned under the scheme
b the loan amount should not be more than 80% of the amount of original deposit
c the loan amount will be linked to present maturity value of the deposit
d the loan would be allowed after obtaining a written request supported by a estimate from hospital
93 When a seller undertakes to make the goods available for export, at his factory, such arrangement is called, as per
International Commercial Terms:
a Ex-wor ks b FO B c C I F d FOR on ship
94 A high value customer issued 5 cheques of above Rs.1 cr each from his account, which have been dishonoured, due to
insufficiency of funds. Which of the following type of action can be taken by bank?
a bank can stop the operations
b bank can withdraw cheque book facility c. bank can close the account
d bank can take suitable action as deemed appropriate
95 International Bank Limited negotiated documents worth Euro 15000 against a without-recourse irrevocable letter of credit
issued by a bank in UK. When the documents were sent to the opening bank in UK, these were returned with the reason
that the bill of lading and the insurance certificate attached to the documents are fake. Opening bank also refused to
make the payment against these documents, which are otherwise as per terms of the letter of credit. What is the position
of International Bank Limited?
a Bank has acted negligently by accepting fake documents due to which it cannot recover the money from opening bank
b Bank has the option to recover the money from the seller who has tendered fake documents
c Bank can rightly claim the money from opening bank under UCPDC provisions since the bank was to see the regularity of
the documents and was not responsible for their being fake
d Bank will have to approach international court
e a and b above
96 A borrower is aggrieved by the decision of DRT under SARFAESI Act and wants to approach DRAT. How much amount (of
the amount decided by DRT) he is required to deposit before his appeal is heard and to what extent, this amount can be
reduced to:
a 75%, 25% b 75%, 50% c 50%, 25% d 50%, ni l e. 75%, ni l
97 Which of the following can be member of joint liability group (JLG) ? (1) landless farmers cultivating land as tenant
farmers, oral lessees or share croppers (2) small / marginal farmers (3) other poor individuals:
a 1 to 3 all b 1 and 2 only c 2 and 3 only d 1 and 3 only
98 Under Liberalized Remittance Scheme (LRS) of RBI, the AD banks can allow remittances by a resident individual up to
prescribed amount per financial year for permitted capital account transaction. Which of the following are included in the
capital account transactions:
a opening of foreign currency account abroad with a bank b purchase of property abroad
c making investments abroad d all the above
99 If a counterfeit note is returned by the police, it is to be carefully preserved for a period of ___ from date of receipt from
the police authorities:
a 1 y ea r b 3 ye ar s c 5 y ea r s d 8 year s
100.All transactions, involving payment of interest on rupee deposits shall be rounded off to ___
a nearest 25 paise b nearest 50 paise c nearest Re.1 d at bank description of bank as per Board approved policy
ANSWER
1 A 2 B 3 B 4 C 5 D 6 C 7 D 8 D 9 A 10 B
11 B 12 D 13 D 14 D 15 B 16 C 17 D 18 C 19 B 20 A
21 A 22 D 23 A 24 B 25 D 26 B 27 C 28 C 29 B 30 C
31 D 32 D 33 C 34 D 35 C 36 B 37 D 38 D 39 B 40 A
41 D 42 C 43 D 44 B 45 A 46 D 47 A 48 B 49 A 50 C
51 C 52 D 53 A 54 B 55 A 56 D 57 B 58 B 59 A 60 C
61 D 62 A 63 B 64 C 65 A 66 D 67 D 68 C 69 B 70 C
71 B 72 D 73 C 74 D 75 D 76 B 77 C 78 B 79 C 80 C
81 D 82 D 83 E 84 C 85 B 86 C 87 B 88 C 89 D 90 D
91 C 92 A 93 A 94 D 95 C 96 C 97 A 98 C 99 B 100 C

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