Thursday, 22 October 2020

Information system for bankers recollected questions on 18 Oct 2020

 

IDS..operators in SQL..steps involved in data warehouse..BCP..smart cards


Defence in depth


Chapter 6 of it act


Caat


Data about data


Section 46 of it act


Responsibility of database administrator


What is intellectual property


IPsec


Certifying authority related questions


Digital signature related questions


Electronic form


These are some of the recalled questions from information system banker

Sunday, 18 October 2020

CCP RECOLLECTED QUESTIONS ON 18.10.2020

 CCP RECALLED QUESTIONS

5 QUESTIONS FROM IRR AND NPV

5 QUESTIONS FROM BREAK EVEN POINT

4 QUESTIONS FROM RATION ANALYSIS

5 QUESTIONS WC CALCULATION

MSME REHABILITATION

5 QUESTIONS PRIORITY SECTOR PSLV

5 QUESTIONS FROM BANK GUARANTEE 

5 CALCULATION OF LC LIMIT

3 QUESTION OF CO-ACCEPTANCE 

TYPES OF MORTGAGE

MINOR

4 RATION ANALYSIS

5 QUESTIONS TERM LOAN CALCULATION

TYPE OF LC

DEFERRED PAYMENT GUARANTEE

DIFFERENCE BETWEEN SYNDICATION AND CONSORTIUM

EDUCATION LOAN MORATORIUM

HBL LTV

RETAIL LOAN 3 QUESTIONS

CASH FLOW THEORY

1 QUESTION FROM LIMITATION

Ten Mistakes to avoid while preparing for CAIIB exam

Ten Mistakes to avoid while preparing for CAIIB exam


1.Not allocating sufficient amount of Study time daily:


This is a very common mistake done by many CAIIB aspirants, Cramming the information before the night of the exam or before two days may helped you in JAIIB examination (Although it is a wrong way of preparation). But here in CAIIB examination it won’t help you to even score thirty marks. A thorough understanding of concepts are needed for almost all topics so having a daily study routine is must for all aspirants.


I know it is very tough to find time during our busy banking hours. If you don’t have time for continuous 2 hrs then split the study hours into three or four sessions of 30 to 40 minutes a day. Since syllabus of CAIIB subjects cover many topics; In depth understanding of each topic is also needed to answer questions that test our knowledge, analytical skills and problem solving skills. So daily allocating sufficient amount of study time is necessary.


2.Not having clear focus on optional paper:


Selecting the correct optional paper and having clear focus on it, is must for successful completion of CAIIB exam. Although the Retail banking and Financial Banking are easy papers to clear, You need choose your optional paper based on your knowledge, interested areas in banking and career development. Don’t follow others recommendation for optional paper blindly. You have to analyse and decide your optional paper.


Remember CAIIB is not only for increments; it also provides many useful theoretical knowledge in different areas of banking.


 


3.Not learning the basic concepts:


Every topic of a subject has basic and fundamental concepts to be learnt by heart. Learning them thoroughly makes us to understand the more complex concepts. Complex concepts are nothing but complex combination of simple and basic concepts. We should have studied the fun1damental concepts in JAIIB (who knows it now ;P ;)). If not revise it then and there when it is required.


To learn the fundamental concepts of economy, business maths, accountancy you can refer more books from your commerce background friends. Remember learning complex concepts won’t be useful if you don’t understand the fundamental concepts behind them.


4.Not understanding and giving importance to syllabus:


In any examination if we want to pass that exam we should thoroughly understand the syllabus first. Because understanding the syllabus will give us a clear picture of what we are going to learn. We also get some insights about the subject. It also helps us to have an idea whether we are familiar with that topic or not. This will help you to assess the complexity of the subject and how much time you need to spend with a topic.


Give importance to syllabus helps to choose the right books for our preparation. Because there are materials that doesn’t cover the full syllabus (only the main areas of the syllabus) are available free in many study groups and websites. Aspirants who doesn’t aware of syllabus simply read those material and attend the exam.


5.Not having a preparation strategy and study plan


This is a common mistake many aspirants do, thinking there is no necessary for planning your study. They even think it is a waste of time. Whatever excuses we give, having a preparation strategy and study plan is must for any type of exam. It will help us to be goal oriented and stay focused of our target. If you do your targeted studies every day, it will make you motivated. As your progress through your schedule you will feel relaxed and your stress level for exam is reduced.


Creating a schedule will hardly take one to two hours of your time. While creating a schedule of your own you will also analyse the syllabus. There are many benefits can be pointed for having a good study plan. Though the initial effort may look too much; But the benefits are fruitful and long-lasting.


6.Not taking effective notes while studying itself


Many aspirants not even consider taking notes is a part of study. While studying if you take notes you will give importance to details. Giving importance to details will make you to ask more questions and to find short answers for it. This enhances your understanding about the topic. It also makes you to break down the contents of your learning in an easy way. Therefore your memory increases and whenever you see the notes you can recollect the content.


Thus taking notes helps you for better and easy revision. I know it is time consuming but once you are familiarised, it will be easy for you to take notes. Because your eyes can spot the important detail easily; Your mind organise them with an analogy for easy remembranc


7.Not solving and practising mathematical problem


Unlike JAIIB, here calculations, formulas and case studies are very important. You definitely need to solve all the problems in your study materials and work books you got. Don’t simply study a formula using one example of a problem related to it. Change the parameters and create problem of your own then solve it. By doing so, you will learn about importance of each parameter of the formul


Practice, Practice, Practice!!!!!. There is no replacement for practising when solving problems, case studies and balance sheet analysis. When solving problems related to Balance sheet also use the same method as described above. There by we can improve our problem solving skills and analytical skil


8.Not revising the topics regularl


Many aspirants ignore the importance of revising, stating there is no time for revising. If you are not making study plan you will not even find time to complete the syllabus. So no excuses, use your notes to revise the topic at regular intervals. For example every Sunday spare 20 to 30 minutes for revising, in addition to your study tim


 “Revise little but often” is the key strategy. Repeated revision make you feel bored and gives a feeling “Ahh!!! I know it. Don’t need to study”. But it makes you to master a topic; If five questions are asked from a single topic for knowledge testing; You can answer all, with 100% accuracy.


9.Not learning from the mistake


The biggest and costliest thing is learning from your mistake. If you have failed in an attempt, accept the failure and analyse where you lacked. When I say accept your failure that doesn’t mean to blame yourself. It means asking yourself questions related to find the cause of the failure. What is the main reason for non completion of the syllabus? In which topic i should improve my knowledge? etc,. How can I improve my reading ability furthe


The answer to the questions should not be too general. It should be specific to spot your weakness. When you find your weakness please work on it. Nobody is perfect in the universe; So find your weakness and mistakes; Try to rectify it before your next attemp


10.Not using the technology for proper and effective preparation of exa


Because of the technology we can study anything from anywhere. So use your mobile, internet, websites, facebook communities,forums and blogs etc,.You can get any information from internet in just a single click or a single press of your finger. I am not saying you to depend on them but to use them as effectively as possible. So do your search whatever you feel useful subscribe to the


Also many websites offering free mock test use them to test your knowledge. While giving mock test take it as serious as an exam. Then only you can know your time management under pressure and boosts your confidence..

All in one

 All in one ....Very useful for promotion exams and to enhance knowledge


1. Under SARFAESI a notice of days is to be given to the borrower in writing to discharge his liability in fulfilling which the secured

creditor shall exercise his rights under Section 13 (4): 60 days

2. Loan up to Rs. for Agro and Food Processing Units

for Priority Sector lending classification: Rs. 100 cr from banking system.

3. In the case of CGTMSE, every amount recovered by the bank and due to be paid to the Trust shall be paid without delay, and if any

amount due to the Trust remains unpaid beyond a period of 30 days from the date on which it was first recovered, interest shall be

payable to the Trust by the lending institution at the rate of: 4% above Bank Rate for the period for which payment remains

outstanding after the expiry of the said period of 30 days.

4. As per KYC norms of RBI, the officially valid documents for limited purpose of small deposit account, the utility bill not older than: 2

months.

5. Under KYC, in case of a body of individual persons, the beneficial owner is a natural person, who, whether acting alone or together, or

through one or more juridical person, exercises control through ownership or who ultimately has a controlling ownership interest of :

15%.

6. Under RBI guidelines, a bank can withdraw cheque book facility to a customer who repeats a bounce offence of cheques of Rs.1 cr

and above each, on more than four times: ( Now Banks to frame its own Board Approved Policy)

7. Under Section 140 of N.I. Act: No excuse is available to the drawer from prosecution if he had no reason to believe when he

issued the cheque that it may be dishonoured on its presentation.

8. Noting is the process when the holder may cause the dishonour to be noted by a notary public when a promissory note or Bill of

exchange (B/E) has been dishonoured by nonacceptance or non-payment. Purpose of noting in case of dishonor of B/E: To create

legal evidence of dishonour.

9. Club's cheque presented while the treasurer (the authorised signatory) has died: The cheque shall be honoured.

10. A and B joint account. C has power of attorney to operate the account. B dies. The cheque signed by C is presented for payment. :

Return the cheque as POA not valid.

11. For the purpose of computing LCR, RBI has decided that in addition, banks will be permitted to reckon as Level 1 HQLAs Government

securities held by them upto another 2 per cent of their NDTL under FALLCR within the mandatory SLR requirement. Hence, the total

carve-out from SLR available to banks would be _____ per cent of their NDTL. The other prescriptions in respect of LCR remain

unchanged: 13

12. RBI has decided to revise the housing loan limits for PSL eligibility from existing Rs.28 lakh to Rs._____ lakh in metropolitan centres (with

population of ten lakh and above), and from existing Rs.20 lakh to Rs.____ lakh in other centres, provided the overall cost of the dwelling

unit in the metropolitan centre and at other centres does not exceed Rs.45 lakh and Rs.30 lakh, respectively: 35; 25

13. Under UCPDC – 600 what is the time period during which Issuing Bank or Nominated Bank can cheque the documents to ensure that

these are as per LC requirement: 5 banking days. * Banker customer relationship in standing instruction: Agent – Principal

14. In Kisan Credit Card Scheme, to calculate the limit for 5 years, the cost escalation is to be built in, for assessing the limit for a

subsequent year at: 10% of previous year limit.

15. The RBI revised guidelines for rehabilitation of MSMEs are applicable for exposure up to Rs. _____: 25 cr.

16. CERSAI defined in which Act: SARFAESI Act.

17. Bullion Dealers in which Risk Category: High.

18. Under PMEGP scheme maximum project cost for service sector: Rs 10 lacs.

19. Risk weight in advances backed by State Guarantee: 20%

20. CRR is defined in which section of RBI Act : Sec 42(1). * Cash payment of Rs. 20,000 & above in case of FDR is restricted under

which Act: Sec 269-T of Income Tax Act. * Protection to Paying bank in case of material alteration in which Section of NI Act:

Sec 89.

21. Protection to Collecting bank is available under which section of NI Act: Sec 131 of N.I. Act.

22. Mutual fund are controlled by which: SEBI.

23. CVV: Customer Verification Value

24. USSD: Unstructured Supplementary Service Data.

25. NUUP: National Unified USSD Platform.

26. IMEI: International Mobile Equipment Identity.

27. NPCI: National Payment Corporation Of India.

28. CVD: Customer Verification Data.


29. Currency of Belgium: Euro.

30. Universal set of standards & guidelines for communication by

31. EDI is called: EDIFACT.

32. Automated Clearing House in Hong Kong is called: CHATS (CHIPS in New York, CHAPS in UK).

33. Stand by L/c is like: Bank Guarantee

34. Duty of confirming bank: Only to verify the genuineness of LC.

35. Max loan amt covered under CGTMSE: Rs 2 cr Fund based+ non fund based.

36. DSCR is for evaluating: Term Loan repayment-surplus generating capacity.

37. Current ratio used for evaluating: Liquidity position

38. Debt securitization company means: conversion of receivables into debt instrument.

39. Min Education qualification for PMEGP: For Mfg upto 10 lac and business/service upto 5 lacs: Nil

40. Variable cost: Which varies with level of production.

41. Break Even Point: No profit no loss. ( TR-TC=Zero)

42. In case of Special crossing, banker get protection under: Section 124 of NI Act

43. Imports regulator: DGFT

44. What is Noting: Getting dishonoured B/E noted from notary. The certificate is called Protest.

45. Current account operated by finance director dies. Cheque signed by him: Will be paid

46. MSME Services loan amount limit: Micro & Small services: Rs. 5 cr; Medium 10 cr.

47. Abbreviation for UCPDC: Uniform Customs & Practices for Documentary Credit.

48. FCNR(B) account type: Term deposit.

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

50. Which is not the function of ALCO: Budget target

51. What is time limitation for decree: 12 years.

52. Time limit to sue incase of cheque return unpaid: One month from the expiry of notice period.

53. Meaning of accrual concept: Mercantile system.

54. Paying bank protection for alteration which Act: Sec 89 of N.I. Act.

55. Collecting bank protection under which Act: Sec 131 of NI Act.

56. What is the extent of imprisonment and monetary penalty for paying Interest and principal of Rs. 20,000/- and above in cash in case of

FDR: Penalty equal to the amount so paid. No imprisonment.

57. What is the maximum punishment when a cheque is dishonored due to the reason ‘insufficient funds under regular proceedings: Upto

2 years imprisonment and/or fine upto twice the amount of cheque.

58. Cash Transaction Report of cash transactions of above Rs. ---- is to be submitted to FIU-ND on monthly cash basis by _______of the

following month: Rs 10 lac; 15th

59. Why Banks are charging interest on monthly basis: To make it compatible with NPA norms.

60. Financial Director Dies - Cheque signed by him presented for payment: Can be paid.

61. A person returning from abroad can retain foreign currency upto what period: 180 days.

62. Normal Transit Period for all bills in foreign currency is ______: 25 days

63. What is the maximum period of Export proceeds realization in normal case: 9 months.

64. Maximum period up to which Exporter is provided advance against Post Shipment Duty Drawback scheme: 90 days.

65. An L/C states that shipment can be done on or about 31 March. What does it means: It can be done during the period of plus / minus

5 calendar days, both start and end dates included.

66. Risk weight in Personal loans / Capital Market exposures: 125%

67. What will the impact when RBI increases Bank Rate

68. : The cost of credit will increase and banks will reduce its borrowings from RBI.

69. What is the maximum limit of investment in Equipment in Micro (Service) enterprises? Rs.10 lacs.

70. Bank has to implement the award given by Ombudsman within _______ after receiving the acceptance from the Customer: One

month.

71. Capital market total exposure is: 40% of net worth of previous year

72. Maximum amount that is permissible under Priority Sector for repair of house in Rural and Semi urban area is ______: Rs 2 lacs.

73. Should part payment of Foreign bill be accepted: Not be accepted

74. Micro, Small and Medium Enterprises is under which Ministry: Ministry of Micro Small & Medium Enterprises.

75. The Prudential Income Recognition norms were implemented in phased manner so that Indian Banks can have: a) Capital adequacy and solvency; b)

Cannot declare excess profit; c) More transparency in published accounts: All

76. Under RTI is it necessary for the person seeking information to give reason as to why he is asking the information: No need to tell the purpose of

seeking information.

77. Cash Flow statement indicates _____: Receipt & Payment of cash in a given period.

78. In DRT what is the cut-off limit : Rs. 20 lakh and above.

79. Is Right of Set -off available on deposits in the name of guarantor: Only if demand has been made and after giving prior notice.

80. In CDR, what is the condition of declaring dividend, profit / loss: No such condition has been prescribed. ( CDR NOW DISPENSED).

81. Under Basel - II, what is the initial approach for Credit risk and Operational risk: Standardized approach, Basic Indicator Approach.

82. What is Capital charge under Basic Indicator Approach of Operational risk: 15% of positive gross income average of last 3 years.

83. What are the factors taken into consideration under Group approach: Commonality of management and control

84. Banks publish Quarterly results as per the guidelines

85. of under Clause _____ of listing agreement: SEBI

- clause 41 of Listing agreement; Corporate Governance


86. In DRI scheme, what the target and sub-targets under Priority Sector: 40% to SC/STs and 2/3rd in rural/semi urban areas.

87. Exporters of good track record are provided continues Packing Credit. It is called _____: Running Packing Credit.

88. To which type of account holders bank do not issue Biometric card: Dormant and inoperative accounts.

89. Under Gold card scheme for Exporters of good track, concessional rate of interest is allowed upto ___: 365 days.

90. At what rate of discount Subordinate debts due within 1 to 2 years is to be taken: 80%

91. Under CGTMSE scheme, who is not eligible for 85% or 80% guarantee cover: SC / STs

92. What is the %age provision in Doubtful assets over 3 years category: Secured: 100%, Unsecured: 100%

93. In the PMEGP scheme, the margin for general category of borrowers is _______ % of Project cost: 10%.

94. Is a Not Negotiable instrument transferable: Yes, it is transferable by way of delivery and endorsement but the title of the transfree

will not be better title than that of transferor.

95. Legal risk is part of: Operational Risk

96. Provision in Standard category assets for direct SME is : 0.25%

97. What is the liability of Introducer in Fraud case: No monetary liability for fraud.

98. Collecting Bank has presented a fake draft in clearing. Who will lodge FIR: Paying Bank.

99. Under Group Exposure norms, how much %age can be allowed by the Banks Board over and above the regulatory guidelines: 5% in

emergent circumstances.

100.The Exporter has submitted the documents for negotiations. What is the time available for Negotiating Bank to scrutinize the

documents received under L/C: 5 banking days following the date of receipt of documents.

101.Farmers who repay short term agricultural loan promptly are eligible for another ____ interest subvention: 3% for short term crop

loan upto Rs. 3 lacs subject to the condition that the effective rate of interest is not less than 4%.

102.The Reserve Bank has allowed banks to participate in Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts

(InvITs) within the overall ceiling of _____ of their net worth permitted for direct investments in shares, convertible bonds/

debentures, units of equity-oriented mutual funds and exposures to Venture Capital Funds (VCFs) [both registered and unregistered],

subject to certain conditions: 20%

103.The Reserve Bank has advised banks to make it mandatory for corporate borrowers having aggregate fund-based and non-fund based

exposure of _____and above from any bank, to obtain Legal Entity Identifier (LEI) registration and capture the same in the Central

Repository of Information on Large Credits (CRILC): Rs. 5 crore.

104.Govt. of India has established Central KYC Records Registry (CKYCR) under provisions of which of: Prevention of Money Laundering

Act 2002.

105.For Import of goods from USA, a customer of Kotak Bank enters into a Free on Board (FOB) contract. The cost pertaining to insurance

and freight will be borne by: Importer.

106.40 For opening Demat account: PAN is necessary.

107.ASBA: Application Supported by Blocked Amount – maximum amount that can be blocked per IPO is: Rs. 2 lac.

108.Under SARFAESI Act 2002, the banks give notice for payment of due amount to the borrower / owner of charged assets within _____ days,

otherwise action will be initiated u/s 13(2) of the Act : 60 days

109. When Ombudsman’s award is accepted by the customer, the bank has is to implement the award within: 30 days.

110.Real Time Gross settlement system minimizes which risk: Systemic risk and settlement risk.

111.Loan assets are classified by the banks on the basis of : By status of recovery and security.

112.The minimum & maximum period of Certificate of deposit is : 7 days, 12 months.

113.Banks print cheque books having similar particulars. The format of cheque is prescribed by which Act : It is a practice.

114.Which Crossing takes away the feature of assumption of defective free title available to the transferee : Not negotiable

115.is mandatory for ASBA: Bank account.

116.Which of the following is wrong about RTI Act: Fee to be paid, can be given in physical / e-form, reason to be mentioned*.

117.Bearer cheque modified, while making payment what is the position of bank: Liable if paid, not liable if paid in due course.

118.Collecting Banker protection available under which Section: Sec 131

119.Protection to the Paying Banker for alteration not detectable: Sec 89.

120.RTGS payment under which Act: Payment & Settlement System.

121.Customer has deposited money for specific purpose, what is the bank: Trustee

122.Multiple Banking Arrangement / Consortium to take action under Sarfaesi what percentage of lenders should agree: 60% of the creditors

by value.

123.How does a Business Correspondent function: Biometric machine

124.Charges for delay in NEFT credit: Repo rate +2%

125.Term Deposits: Differential interest rate shall be offered only on bulk deposits: Rs Two crore & above.

126. Penalty to be paid per year for revival of Sukanya Samriddhi Account: Rs. 50 * Life cover under PMJDY for

eligible accounts: Rs.30,000/-

127.Treasury Bills can be issued upto how many days: 364 days.

128.When a person opens various bank accounts and draws amount against clearing, it is known as: Kite fying.

129. 411 Union Territory under B region: Chandigarh

130.EEFC opened by resident with joint name of non-resident, what is operational condition: Former or survivor.

131.Banks can take a decision to go for two way protection to avoid middlemen attack in which of the following: Internet Banking.

132.The revised SME rehabilitation framework is applicable upto how much amount: Rs. 25 crore

133.If BEP is high, it means: Low safety margin.

134.Exposure in SHG / JLG as qualifying assets for an MFI to qualifying for priority sector lending: 85%

135.Limit not renewed / adhoc not cleared, when shall the account become NPA:180 days

136.Which of the following Union Territory is included in a region(official language): Andamans & Nicobar


137.What is the loan limit for Agriculture Infrastructure under Priority Sector: Rs. 100 cr.

138.What is the loan limit for Agriculture Ancillary under Priority Sector: Rs. 100 cr.

139.Foreign DD deposited in NRE account. Which rate will be used for conversion: TT Buying rate.

140.In an E or S account, one person has issued the cheque, the other person has corrected the date and signed. Whether cheque can be

passed: Yes

141.The portal for education loan: Pradhan Mantri Vidya Lakshmi Karyakram.

142.The account of a foreign student before full KYC compliance, the deposit allowed is upto : US $ 1000

143.Weighted average interest charged under Deendayal Aantyodaya Yojana (NRLM): All Commercial Banks (excluding RRBs) will be

subvented to the extent of difference between the Weighted Average Interest Charged and 7% subject to the maximum limit of

5.5%. This subvention will be available to all the Banks on the condition that they make SHG credit available at 7% p.a. in the 278

districts.

144. The Payments Banks and the Small Finance Banks are called Differentiated Banks. Recommended by Committee: Shri Nachiket Mor, (

Comprehensive Financial Services for Small Businesses and Low-Income Households).

145.AD Category – I bank need not follow up submission of

146. evidence of import involving amount of USD or

less provided they are satisfied about the genuineness of the transaction and the bonafides of the remitter: 100,000

147.Current account opening with A, B and C. C is a pardanishin lady and has not given photograph. Which of the following to be done:

Photograph of pardanishin lady is necessary otherwise follow the guidelines on partial/total freezing.

148.Receivable Rs. 20 lacs. Sales Rs. 120 lacs. What is Debtor Collection Period? 2 Months

149.Retention Period for form 15G/ 15H obtained at branches: 7 years.

150.For farm Mechanization for financing of tractor the minimum land holding is : 2.5 acre

151. For filling a complaint under Consumer Forum the limitation

152.period: 2 Years from date of cause of action arises. * The terms used for hiding money to avoid tax is: Money

153.laundering.

154.Which Crossing is not defined in any Act: Account Payee

155.As per RBI guidelines of Dec 2015, target for loans to priority sector for Regional Rural Banks w.e.f 1-1-2016 is : 75% of total

outstanding.

156.A forex bill discounted by the bank was returned back unpaid. The amount will be recovered from the party by using which rate: TT

Selling rate.

157.Clause Bill of Lading indicates: Bill of Lading issued by shipping company indicating defective condition of goods or defective packing.

158.In case of single or Individual borrower, the exposure ceiling as fixed under Group exposure norm is 15% which can be further

enhanced in case of Infrastructure by: 5%

159.Bank paid amount in INR after conversion of USD @ 68.63/68. For US $ 30,000 and with 5 paise per dollar as commission, what

amount will be credited in customers account: Rs.20,57,400/-

160.In case of sole banking arrangement, in how many days from noticing the Early Warning Signal (EWS), the decision to classify an

account as Red Flagged Account (RFA) has to be taken: 1 month.

161.Statutory Liquidity Ratio (SLR) is 19.00% of net demand and time liabilities of banks w.e.f: 13-04-2019.

162. The rate of interest equalisation available on Pre-Shipment Rupee Export Credit and Post-Shipment Rupee Export Credit is:

5% p.a

163.The Balance sheet of M/s Amteck indicates at the beginning of the financial year, the capital of a firm as Rs. 9,80,000. The firm

earned a profit of Rs.2,40,00 and paid tax at 10%. The two partners also withdrew Rs.75,000 each. What is the closing balance in the

Capital account: Rs.10,46,000/-

164.Bearer uncrossed cheque can be paid to whom: To the bearer of the cheque.

165.In PMEGP, what is the income criterion for borrower’s family and borrower’s parents: No criteria.

166.The increasing foreign exchange reserves in India are costly because: Funds are idle and it carries fluctuation risk.

167.Who is appointed to tackle public complaints against the public authorities: Ombudsman.

168.What is NOSTRO: A bank’s account maintained by a bank in India with a bank abroad in foreign currency.

169.On other than a negotiable instrument, what is the time period for payment of stamp duty, if the document is executed outside India:

3 months.

170.FCNR (B) deposit can be accepted by banks in ____ currencies: All convertible currencies.

171.May I help you counter is to be provided by bank branches other than : Small branches

172.A firm is allowed a limit of Rs.1.40 lac at 30% margin. It wants to avail the limit fully. How much will be the value of security : Rs.2

lac.

173.Statutory Liquidity Ratio provisions for banks are as per Section _____ of _____: 24 (2), Banking Regulation Act 1949.

174. An NRI can open a joint account with a resident in case of

175. accounts: Non-resident Ordinary.

176.The minimum capital adequacy ratio (CAR) implemented in India by RBI is ____ % and as per Basel recommendations it

177.is % : 9%, 8%

178.What type of charge is applicable on loan against term deposits in a bank: Assignment.

179.Garnishee Order is not applicable on: Un-used cash credit or overdraft limit.

180.Islamic banking has the features of: Conservative Banking.

181.When rate of interest is expressed by adjusting the impact of inflation, this is called _____ : Real rate of Interest.

182.RBI keeps on changing repo / reverse repo rate / CRR with the objective of: Regulation of liquidity to control inflation.

183.What is the periodicity for submission of R-Returns to RBI : Fortnightly

184.The facility of nomination is not available to Trust account because it is _____ account: Non-individua


185.Banks are required to make provision on Standard Assets at the rate of 0.25% on ______ & ______ accounts: Direct agriculture, SME

and CRE-RH.

186.A person wants to open an account which his wife should be able to operate only after his death. What type of account he should

open: Former or survivor.

187.In B region, the reply to letters in Hindi is to be given to the extent of ____ %: 100%

188.Within Priority Sector target of 40% of ANBC or CEOBE, whichever is higher, the sub-target for Weaker section is: 10%

189.Apiculture relates to : Bee-keeping

190.In case of a jointly operated joint account, the nominee can obtain payment when : None of the account holder is alive.

191.Call money deposit is part of the ______ sector: Organised sector.

192.The long term liability to tangible net worth ratio implies : Long term solvency of the firm or capacity of the firm to pay long term debt

– Total indebtedness ratio.

193.Current ratio implies: Capacity of the firm to pay current liabilities out of current assets.

194.Working capital requirement of a firm is required to be met through: Short term sources and surplus of long term sources over long

term uses.

195.Who cannot become a partner in an LLP firm: HUF & Minor.

196.What is the maximum period for which an account classified as sub-standard, can remain: 12 months.

197.A company wants to electronically pay the dividend to large number of its shareholders, which include small amounts also: Electronic

Clearing Services – Credit (ECS-Credit).

198.A cheque is written in different hand-writings and different inks: It will be paid.

199.Opening of Non-resident accounts by _____ has been allowed by RBI : RRBs.

200.Bailment of goods by a person to another person, to secure a loan is called : Pledge.

201.When mortgage is created by a person by deposit of title deed orally, it is called ____ mortgage: Equitable mortgage.

202.Which crossing is not a general crossing: When name of bank is written within or without parallel lines.

203.‘Buy now and Pay later’ is the facility available under : Credit card

204.A financial statement that provides information regarding where the funds have come and where these have been used over a period

of time is called: Funds flow statement.

205.Who can open NRE account : NRI

206.A mandate holder for a current account has died and a cheque signed by him is presented for payment after his death: The cheque

shall be paid.

207.The true owner of a cheque has been deprived his right by collection of the cheque for a different person. This is called: Conversion.

208.A bank branch receives a counterfeit note of Rs.500, which customer wants back. What the bank should do: To be impounded and

not to be returned under any circumstances.

209.For FCNR (B) deposits, the exchange risk is born by: Bank.


211. CUT OFF LIMIT FOR FOLLOW UP / REVIEW / MONITORING MARKED FOR RECOVERY :- NPA AC WITH LIAB UP TO

RS. 10 LAKH FOR RO , ABOVE RS. 10 LAKH FOR CO, ABOVE RS. 1 CR FOR HO.

212. RTGS CHARGES :- FROM RS. 2 LAKH TO RS. 5 LAKH TIMING 8 AM –11AM :- NIL , 11AM –01PM :-RS.27, 1PM --4.30PM :-RS.

30,

213. NEFT CHARGES :--UP TO RS. 100000 :- NIL , FROM RS. 1 LAKH TO RS. 2 LAKH:-RS. 15, ABIOVE RS. 2 LAKH :- RS. 25 , 8 TO 7

PM TOTAL 23 SETTLEMENTS, FOR DELAYED CREDIT PAY INT AT RBI LAF REPO + 2%.

214. ATM FAILED TRANS CLAIM FROM OTHER BANKS RESOLVE IN 4 DAYS , ATM 50 NOT ALLOWED BEYOND 120 DAYS

FROM THE ACTUAL TRANSACTION DATE .


216. SCA / SDL :- SAFE CUSTODY ARTICALS / SAFE DEPOSIT LOCKERS :-- INDIAN CONTRACT ACT.

217. BANKERS LIEN / SECRECY OF ACCOUNT :--IMPLIED PLEDGE.

218. CONTRACT OF INSURANCE :--INDEMNITY CONTRACT

219. MORTGAGE :--TRANSFER OF PROPERTY ACT

220. CARE :--CREDIT ANALYSIS AND RESEARCH LTD .

221. NOMINEE :--TRUSTEE OF LEGASL HEIRS.

222. FCNR :--MAX FOR 5 YRS CAN OPEN

223. CUSTOMER MEET :--CONDUCTED IN 15 OF EVERY MONTH.

224. RIGHT OF SUBROGATION :--GUARANTOR CLEARS THE LIAB OF PRINCIPAL BORROWER .

225. EMPLOYEES SHOULD AWAY FROM DESK :--MIN 10 DAYS.

226. AGRI CLINIC / AGRI BUSINESS :--NO MARGIN / SEC UP TO RS. 5 LAC.

227. BREAK EVEN POINT :-- NO PROFIT / LOSS

228. SMERA :--SMALL AND MEDIUM ENT RATING AGENCY SET UP BY SIDBI.

229. REPO RATE :--MONEY MKT INSTRUMENT.

230. CRISIL :--CREDIT RATING INFORMATION SERVICES OF INDIA LTD.

231. WHITE LABEL ATM :--MIN NET WORTH OF CO. RS. 100 CR.

232. CREDIT RATING AGENCY :--REGULATED BY SEBI .

233. ASBA (APPLICATION SUPPORTED BY BLOCKED AMOUNT ) :--MAX AMNT CAN BE BLOCK RS. 2 LAKH.

234. SELLING THIRD PART PRODUCT S :--OPERATIONAL RISK .

235. EXCESS LIQUIDITY IN SYSTEM :-- CALLED INFLATION


236. SABBATICAL LEAVE CAN TAKE FOR MAX 2 YRS.

237. RTGS RISK :-- CALLED SYSTEMATIC AND SETTLEMENT RISK.

238. FIRE AUDIT OF CURRENCY CHEST :--ONCE IN 2 YRS .

239. RATINGS FOR BANKS :--PADMANABHAN COMMITTEE, CAMEL :--CAPITAL ADEQUACY, ASSET QUALITY, MANAGEMENT

, EARNINGS PERFORMANCE , LIQUIDITY, SYSTEMS AND CONTROLS.

240. RTI :--RIGHT TO INFORMATION ACT :-REPLY IN 30 DAYS , PENALTY OF RS. 250 PER DAY , MAX RS. 25000, PRESERVE

RECORD 5 TO 8 YRS.

241. IBC 2016 :--INSOLVENCY AND BANKRUPTCY CODE 12016.

242. FRAUD :-- OPERATIONAL RISK.

243. SCSS :--SENIOR CITIZEN SAVINGS SCHEME :--FOR MAX 5 YRS, CAN EXTEND UP TO 3 YRS, INT COMPOUNDED QRTLY,

MIN RS. 1000 MAX RS. 15 LAKH, AGE 60 , PREMATURE CLOSURE PERMITTED AFTER ONE YEAR WITH PENALTY.

244. MMID ( MOBILE MONEY INDENTIFIER ) ALWAYS :--7 DIGIT.

245. ANY EMV CHIP CARD :--VALIDITY 5 YRS .

246. CPGRS :--CANARA PUBLIC GREIVENCES REDRESSAL SYSTEM :--BY DAMODARAN COMMITTEE.

,

248. IBBI :--INSOLVENCY AND BANKRUPTCY BOARD OF INDIA .

249. UDYAMI MITRA PORTAL :- FOR STAND UP INDIA MANTAINED BY SIDBI.


251. NEW FUNCTIONALITY NOW AVAILABLE IN NET BANKING :--TEMPORARY BLOCK / UNBLOCK ATM CARD , SET LIMIT

FOR ATM / POS TRANSACTION, INSTANT PIN GENERATION , HOT LISTING OF DEBIT CARD.

252. PMJDY OVERDRAFT :--PRIME MINISTER JAN DHAN YOJANA :- MAX RS. 10000 OR 4 TIMES OF AVERAGE MONTHLY BAL

OR 50 % OF CREDIT IN LAST 6 MONTHS WHICHEVER IS LOWER , AGE LIMIT 18 TO 65, SATISFACTORY DEALINGS FOR THE

LAST 6 MONTHS, NOT ELIGIBLE :-MINOR / KCC / GCC/ MORE THAN ONE MEMBER IN SAME FAMILY , CGTMSE COVER

AVAILABLE UP TO 60 % OF DEFAULT.

253. RBIA :--SECURING LOW RISK IN RBIA . PERIODICITY OF CONDUCTING INSPECTION CHANGED TO 18 MONTHS FOR :-LOW

RISK A, 15 MONTHS FOR :-NORMAL RISK B , 12 MONTHS FOR :-MODERATE RISK C, 06 MONTHS FOR HIGH RISK D,

BUSINESS RISK :--20% , CONTROL RISK :--80%

254. INT RATE FOR BULK DEPOSIT OF RS. 10 CRORE AND ABOVE IS TO BE OBTAINED FROM INTEGRATED TREASURY

WING , MUMBAI.

255. MAXIMUM PERIOD FOR ACCEPTING NRE TERM DEPOSIT IS :- 10 YEARS AND MINIMUM :-1 YEAR.

256. SR CITIZEN ARE NOT ELIGIBLE FOR ADDITIONAL INT RATE FOR NRE TERM DEPOSIT.

257. EMPLOYEE / EX-EMPLOYEE / EX EMPLOYEE SR CITIZEN ARE NOT ELIGIBLE FOR PREFERENTIAL INT RATE FOR NRE

TERM DEPOSIT.

258. FOR SINGLE NRE RETM DEPOSIT RS. 1 CRORE AND ABOVE TO RS. 10 CRORE:--TAKE UP MATTER WITH DEVELOPMENT

SECTION , STRATEGIC PLANNING AND DEV WING , H O , THROUGH MIPD AND PP SEC OF CO FOR OBTAINING

PERMISSION.

259. PENALTY 1 % FOR PREMATURE CLOSURE AND PRE MATURE EXTENSION OF NRE TERM DEPOSIT OF LESS THAN RS. 1

CRORE ON OR AFTER 29/12/2011.

260. NO PENALTY OF 1 % IN CASE OF PREMATURE CLOSURE / PREMATURE EXTENSION OF NRE CALLABLE TERM

DEPOSIT RS. 1 CR AND ABOVE.

261. NO INT FOR NRE TERM DEPOSIT CLOSED BEFORE 1 YEAR.

262. EXTENSION OF PERIOD OF NRE TERM DEPOSIT , THE PERIOD OF EXTENDED DEPOSIT SHALL BE MIN 1 YEAR AND

MAX 10 YEAR.

263. AUTO RENEWAL OF NRE TERM DEPOSIT IS ONLY --ONCE .

264. OVERDUE NRE DEPOSIT WILL BE PAID INT AT SB RATE FROM THE DATE OF MATURITY TILL THE DATE OF

PAYMENT OR / RE-INVESTED.

265. SR CITIZEN NOT ELIGIBLE FOR ADDITIONAL ROI FOR FCNR DEPOSIT.

266. EMPLOYEE / EX-EMPLOYEE / EX-EMPLOYEE SR CITIZEN ARE NOT ELIGIBLE FOR PREFERENTIAL ROI.

267. FCNR / RFC -DEPOSIT FOR USD 1 MILLION AND ABOVE :-OBTAIN PERMISSION FROM INTEGRATED TREASURY WING

MUMBAI ( FOREX DEALING ROOM ), CAN SEND MAIL TO funds@canarabank.com 022-26725033.

268. DOMESTIC DEPOSIT PERIOD MIN :-7 DAYS , MAX:-10 YEARS.

269. NON CALLABLE TERM DEPOSIT ARE BULK DEPOSIT WHERE PREMATURE WITHDRAWAL NOT PERMITTED.

270. BANK IS NOT ACCEPTING BULK TERM DEPOSIT MATURITIES OF 5 YEARS AND ABOVE.

271. FOR DOMESTIC TERM DEPOSIT OF SR CITIZEN ( INCLUDING RD ) -ADDITIONAL ROI IS GIVEN 0.050%.

272. SR CITIZEN NOT ELIGIBLE FOR ADDITIONAL INT RATE ON NRO TERM DEPOSIT AND DEPOSIT ACCEPTED UNDER

CAPITAL GAIN DEPOSIT.

273. FOR SINGLE DEPOSIT RS. 1 CRORE AND ABOVE UP TO RS. 10 CRORE, TAKE UP MATTER WITH DEV SEC , SP AND D WING

HO THROUGH MIPD CO .

274. FOR NON CALLABLE DEPOSIT ( WHERE PREMATURE WITHDRAWAL IS NOT PERMITTED ) OF RS. 1 CRORE ( OTHER

THAN INDIVIDUAL AND HUF ) , PERIOD IS MIN 46 DAYS AND ABOVE , AN ADDITIONAL INT RATE OVER AND ABOVE

THE RATE OFFERED FOR GEN PUBLIC IS BEING EXTENDED.

275. EMPLOYEE / EX –EMPLOYEE :--ADDITIONAL 1 % EXTENDED , EXCEPT FOR NRO TERM DEPOSIT AND CAPITAL GAIN AC

276. EX –EMPLOYEE SR CITIZEN ADDITIONAL 1.50% AVAILABLE, EXCEPT NRO AND CAPITAL GAIN AC.

277. CANARA TAX SAVER --ADDITIONAL ROI TO EX –EMPLOYEE SR CITIZEN :--IS AVAILABLE ONLY 1 % .

278. DOMESTIC / NRO DEPOSIT FOR HUF KARTA SR CITIZEN :--NO ADDITIONAL ROI.

279. NRO TERM DEPOSIT :--SR CITIZEN / EMPLOYEE / EX-EMPLOYEE / SR CITIZEN :-NO ADDITIONAL ROI AVAILABLE


280. CAPITAL GAIN DEPOSIT :--NO ADDITIONAL ROI IS AVAILABLE FOR ANYBODY.

281. RD ( RECURRING DEPOSIT ) :--ADDITIONAL 1 % ELIGIBLE FOR EMPLOYEE / EX EMPLOYEE, FOR EX –EMPLOYEE SR

CITIZEN ADDITIONAL ROI IS :- 1.50% AVAILABLE, FOR SR CITIZEN ADDITIONAL ROI IS :-0.50 %.

282. 1 % PENALTY IS THERE FOR PREMATURE CLOSURE / PART WITHDRAWAL / PREMATURE EXTENSION RS. 1 CR AND

LESS.

283. NO PENALTY FOR PREMATURE CLOSURE / PART WITHDRAWAL / PREMATURE EXTENSION CALLABLE DEPOSIT RS. 1

CRORE AND ABOVE.

284. NO INT FOR DEPOSIT CLOSED BEFORE 7 DAYS.

285. PENALTY :-1 % TERM DEPOSIT UNDER CAPITAL GAIN AC FOR PREMATURE CONVERTED / WITHDRAWN / CLOSED.

.


288. SURPRISE VERIFICATION OF CASH AND SECURITIES :--ONE MANAGER OR ONE OFFICER WITH ONE SWOP., ONCE IN

A MONTH THROUGH NEARBY BRANCH , ONCE IN QUARTER BY DM / AGM OF RO / CO.

289. REVISED CHARGES FOR AADHAAR RELATED SERVICES AT AADHAAR SEVA KENDRA AND AADHAAR ENROLLMENT

CENTRE :---AADHAAR ENROLLMENT ( GENERATUION ) :-FREE, MANDATORY BIOMETRIC UPDATE OF CHILDREN :--

FREE, DEMOGRAPHIC / BIOMETRIC OR BOTH UPDATE :--41+9 ( GST ) = RS. 50 , AADHAAR SEARCH USING e-KYC /

FIND AADHAAR COLOUR PRINT :--RS. 25 +5 ( GST )= RS. 30, UIDAI GIVES RS. 100 TO BANK FOR EACH ENROLLMENT.

290. DUE DILIGENCE SERVICES FOR MICRO, SMALL AND MEDIUM ENT ARE AVAILABLE WITH M/S CARE RATINGS

LIMITED ( EARLIER IT WAS KNOWN AS M/S CREDIT ANALYSIS AND RERSEARCH LIMITED ) AND ALSO AVAILABLE

WITH M/S ACUITE RATINGS AND RESEARCH LIMITED ( EARLIER WAS KNOWN AS M/ SMERA RATINGS LIMITED ) .

291. NEW RETAIL LOAN PRODUCT :--CANARA HOME LOAN SECURE ( CHLS ) , THIS IS RETAIL PERSONAL LOAN FOR 100 %

FUNDING OF ONE TIME LIFE INSURANCE PREMIUM OFFERED BY M/ S CANARA BANK HSBC , OBC , CHOICE .

292. UPI ( UNIFIED PAYMENT INTERFACE ) :--PER DAY TRANSACTION MAX RS. 20000 , TOTAL MAX NO OF TRANS IN A

DAY PERMITTED :- 10 .

.

294. CMR ( CIBIL MSME RANK ) :- A NEW PRODUCT OF CIBIL AS AN ADDITIONAL DUE DILIGENCE TOOL FOR MSME

PROPOSALS FOR ABOVE RS. 10 LAKH TO RS. 10 CRORES.

295. THE STANDARD DEDUCTION FROM SASLARY INCREASED TO RS. 50000.

296. THE THRESHOLD LIMIT FOR TDS ON INT INCOME OTHER THAN INT ON SECURITIES INCREASED TO RS. 40000. FOR SR

CITIZEN RS. 50000

297. THE THRESHOLD LIMIT FOR TDS ON RENTAL INCOME INCREASED TO RS. 2,40,000.

298. MAXIMUM TIME FOR CLOSURE OF RBIA REPORTS :--2 MONTHS FOR SMALL BER / SERVICE UNITS / AC SECTION / LPC /

FD / CC / SME SULABH. 3 MONTHS FOR MED BR / MCB / RAH / SME BR / PCB . 4 MONTHS FOR LARGE BR / ELB / VLB ,

3 MONTHS FOR HIGH RISK BR , 1 MONTH FOR SNAP AUDIT OF KYC / AML EXP AUDIT / SNAP AUDIT OF NORMAL AND

MODERATE RISK BR .

299. UPDATION OF AOD IN CBS :-OPTION IS BA020.

300. REVISION OF DEFINATION OF BULK DEPOSIT DONE :--NOW, SINGLE RUPEE TERM DEPOSIT WILL BE OF RS. 2 CRORE

AND ABOVE. ( EARLIER IT WAS RS. 1 CRORE ) .

301. CARD LOSS AND ACCIDENTAL DEATH INSURANCE POLICY COVER WILL BE AVAILABLE NOW FROM M / S TATA AIG

WEF 08/08/2018 ( EARLIER WAS FROM M/S ICICI LOMBARD GEN INSU ) .

302. VIDYA SHAKTHI :--NEW EDUCATION LOAN SCHEME FOR THE STUDENTS OF PERSONS WITH DISABILITIES ( PWD )

CATEGORY .

303. CGTMSE :-- PAYMENT OF ANNUAL SERVICE FEE ( ASF ) , AND ANNUAL GTEE FEE ( AGF ) :--FOR DELAYED PAYMENT

ATTRACTS PENALTY AND ADDITIONAL PREMIUM OF 15 % .

304. DBS ( DIGITAL BANKING SERVICE ) :-- HELP DESK NO ONLY FOR BRANCHES TOLL FREE :-1800-425-8395 .

305. PLATINUM DEBIT CARD RISK COVERED :--DEATH DUE TO ACCIDENT :--AIR CRASH RS. 8 LAKH, RS. 4 LAKH FOR SPOUSE ,

OTHER THAN AIR CRASH RS. 4 FOR SELF AND RS. 2 LAKH FOR SPOUSE, BAGGAGE INSU RS. 25000 PER CARD, PURCHASE

PROTECTION COVER RS. 25000 PER CARD.

306. BANKS COMPENSATION POLICY :--BANK WILL COMPENSATE CLAIM WHERE NO MISTAJKE OF BANK / CUSTOMER RS.

100 PER RS. 5000 , MAX RS. 1000 FOR EACH INSTANCE.

307. GST REPLACED ALL INDIRECT TAXES SUCH AS CENTRAL EXCISE DUTY / SER TAX / STATE VAT / CENTRAL SALES

TAX /LUXURY TAX / ENTRY TAX / ENTERTAINMENT TAX / AMUSEMENT TAX / TAXEX ON ADVERTISEMENT / PURCHASE

TAX / TAXES ON LOTTERY , BETTING , GAMBELLING / STATE SURCHARGE CESS.

308. COMMITMENT CHARGES :--1 % FOR ABOVR RS. 10 CRORE FOR BOTH FB / NFB .

309. NRLM :--AAJIVIKA :-NO COLLATERAL UP TO RS. 10 LAKH .

310. ELERCTRICITY BILL IS ACCEPTED AS OVD FOR THE LAST 2 MONTHS ONLY.

311. INTRODUCTION IS NOT MANDATORY FOR OPENING OF SB / CA /ODCC ACCOUNTS

312. AADHAAR IS MANDATORY FOR SB ACCOUNT OPENING.

313. IF ADDRESS PROOF IS NOT AVAILABLE IN KYC , THEN OBTAIN DECLARATION OF LOCAL ADDRESS WHICH IS

ACCEPTABLE .

314. IN CASE OF LOW RISK CUSTOMER -SUBMIT KYC DOCUMENTS IN 6 MONTHS FROM THE ACCOUNT OPENING DATE.

315. FOR FOREIGN STUDENT --SUBMIT KYC AS LOCAL ADRESS IN MONTH FROM THE DATE OF ACCOUNT OPENING .

316. VINTAGE PARAMETERS MEANS - NEWLY OPENED CASA ACCOUNTS NOT COMPLETED 6 MONTHS FROM THE DATE

OF ACCOUNT OPENING ( WILL BE HIGH RISK ACCOUNTS ) EXCEPT STAFF / PENSIONERS / EX-STAFF / SMALL ACC / F I AC /


BSBD ACCOUNTS.

317. RISK REVIEW OF CASA ACCOUNTS DONE ONCE IN EVERY 6 MONTHS ON 15TH MAY AND ON 15TH NOV EVERY

YEAR.

318. FOR MEDIUM RISK CATEGORY -HIGHER DUE DILIGENCE IS REQUIRED .

319. THRESHOLD LIMIT ISD FIXED AT AC LEVEL ON THE BASIS OF - POPULATION CATEGORY / NATURE OF AC / BUSINESS

ACTIVITY / PROFESSION .

320. PERIODICAL UPDATION OF CUSTOMER IDENTIFICATION DATA ( PHOTO / ADD PROOF ) IS TO BE DONE IN ALL

ACCOUNTS ONCE IN 10 YEARS -LOW RISK CATEGORY / 8 YEARS -MEDIUM CATEGORY / 2 YEARS -HIGH RISK

CATEGORY ACCOUNTS. QUARTERLY IN THE MONTH OF APRIL / JULY / OCT / JAN .

321. FREASH PHOTO OF IDENTITY AND ADDRESS PROOF NOT REQUIRED IN CASE OF -LOW RISK CUSTOMER .

322. FOR NON COMPLIENCE OF KYC / AML / CFT PENALTY MIN RS. 10000 AND MAX RS. 1 LAKH TO EMPLOYEE.

323. CCR MEANS - COUNTERFEIT CURRENCY REPORT

324. STR MEANS - SUSPICIOUS TRANSACTION REPORT , NO PERIODICITY OF REPORTING.

325. CTR MEANS – CASH TRANSACTION REPORT , ( TRANS VALUE RS. 10 LAKH OR ITS EQUIVALENT , AGGREGATE IN ONE

MONTH . REPORT TO FIU-IND MONTHLY BY 15 TH OF SUCCEEDING MONTH.

326. FATF MEANS - FINANCIAL ACTION TASK FORCE , TRANSACTION INVOLVING COUNTRY LISTED BY FATF.

327. RECORDFS OF CBS TRANSACTIONS MAINTAIN FOR 10 YEARS .

328. OBTAIN FRESH ADDRESS PROOF IN CASE OF TRANSFERRED ACCOUNTS.

329. HNI MEANS -HIGH NETWORTH INDIVIDUALS ( AVERAGE DEPOSIT SB+CA+TD ) RS. 100 LAC AND ENJOYING FUND

BASED LIMITS RS. 100 LAKH AND ABOVE.

330. AADHAAR IS 12 DIGIT NO.

331. SB ASCCOUNT INT QUARTERLY ON 1ST OF FEB / MAY / AUG / NOV .

332. JOINT ACCOUNT ILLITERATE AND LITERATE OPERATION BY ILLITERATE OR JOINTLY ONLY.

333. CHEQUE BOOK CAN BE ISSUE TO BLIND PERSON ALSO BUT FOR SPECIFIC PURPOSE ONLY.

334. RURAL BRANCH WITH OR WITHOUT CHEQUE BOOK MIN BAL RERQUIRED RS. 500

335. SEMI URBAN / URBAN / METRO WITH OR WITHOUT CHEQUE BOOK MIN BAL REQUIRED IS RS. 1000 ( AVERAGE

MONTHLY BALANCE ).

336. MINIMUM BALANCE NOT REQUIRED IN CASE OF ACCOUNTS OF NRI / ZERO BAL AC / STUDENTS / PMJDY / SR

CITIZENS / PENSIONERS / EMPLOYEE STAFF .

337. SCALE 4 AND ABOVE ONLY HAVING AUTHORITY TO PERMIT TOD IN SB /CA .

338. TOD AGAINST SALARY - MAX RS. 5000 FOR MAX PERIOD 15 DFAYS.

339. CANARA PAY ROLL PACKAGE TOD --MAX 2 TIMES IN CALENDER YEAR , MAX 50% OF LAST MONTH NET SALARY ,

MAX RS. 50000

340. FOR PENSIONER TOD 50% OF MONTHLY PENSION .

341. BSBD ACCOUNTS MAX 4 WITHDRAWAL IN A MONTH PERMITTED INCLUDING ATM WITHDRAWAL. AND MAX 48

WITHDRAWALS IN A YEAR.

342. CANARA SB POWER PLUS - QUARTERLY AVERAGE BAL RS. 1 LAKH AND ABOVE , CAN OPEN WITH ZERO BALANCE,

PENALTY FOR NON MAINTENANCE OF MIN BAL RS. 250 PER QTR.

343. CANARA PRIVILAGE CURRENT AC -QUARTELY AVERAGE BAL RS. 1 LAKH AND ABOVE , NON MAINTENANCE OF MIN

BAL PENALTY RS. 1000 PER QTR. ACCOUNT CLOSED BEFORE ONE YEAR PENALTY RS. 2000 +SC

344. CALLABLE DEPOSIT RS. 1 CRORE AND ABOVE -PREMATURE CLOSURE IS ALLOWED WITHOUT PENALTY .

345. NON CALLABLE DEPOSIT RS. 1 CRORE AND ABOVE --PREMATURE CLOSURE NOT ALLOWED , MIN PERIOD 46 DAYS

AND ABOVE ( OTHER THAN INDIVIDUAL AND HUF ) , NO AUTO RENEWAL , NO PART WITHDRAWAL IS PERMITTED,

BULK DEPOSIT UNDER NON CALLABLE UP TO MAX 5 YEAR IS ALLOWED ONLY. MEANS CAMNNOT OPEN MORE

THAN 5 YEARS.

346. DEAF MEANS- DEPOSITOR EDUCATION AND AWARENES FUND --MONTHLY TRANSFERRED TO HO , HIGH RISK

ACCOUNTS .

347. PMJDY --BORROWER HOUSEHOLD ANNUAL INCOME DOES NOT EXCEED RS. 1 LAKH IN CASE OF RURAL AREA, RS.

160000 IN CASE OF NON RURAL AREA . Additional LIFE INS COVER AVAILABLE RS. 30000.

348. APY –ATAL PENSION YOJANA -ADMINISTERED BY PFRDA AND NSDL , AGE BETWEEN 18-40, MIN CONTRIBUTION 20

YEARS , MIN RS. 1000 MAX RS. 5000, PENSION STARTS AT THE AGE OF 60

349. WITHDRAWAL IN EMPLOYEES ACCOUNT UP TO RS. 5000 --SPL ASSISTANT CAN PASS , UP TO RS. 10000 OFFICER CAN

PASS , ABOVE RS. 10000 -MANAGER / SR MANAGER CAN PASS.

350. PMSBY :-- PRADHAN MANTRI SURAKSHA BIMA YOJANA, GEN INS CO / BAJAJ INS CO , AGE 18-70, ACCIDENTAL

DEATH DISABILITY RS. 2 LAKH , PREMIUM RS. 12 + GST ( RS. 10 INS CO , RS.1 FOR BC / BK , RS. 1 FOR PER ANNUM PER

MEMBER.

351. PMJJBY :-- PRADHAN MANTRI JEEVAN JYOTI BIMA YOJANA , LIFE INS COVER RS. 2 LAKH, PREMIUM RS. 330 ( RS. 289

FOR PER MEMBER , RS. 30 FOR BC / BK PER ANNUM PER MEMBER , RS. 11 FOR P A PER MEMBER , ASGE 18-50.

352. PRIORITY SECTOR TARGET :--40% OF ANBC , AGRI :-18% OF ANBC , MSME 7.50 % OF ANBC , EL :--PRIORITY UP TO

RS. 10 LAKH , HL :--METRO POPULATION 10 LAKH AND ABOVE RS. 35 LAKH ( COST OF DWELLING UNIT RS. 45 LAKH ) ,

OTHER :--RS. 25 LAKH ( COST OF DWEL;ING UNIT RS. 30 LAKH ), HL REPAIR :--METRO RS. 5 LAKH , OTHER RS. 2 LAKH .,

EXPORT 2 %.

353. MICRO ENT , SMALL ENT , MEDIUM ENT INVESTMENT IN PLANT AND MACHINERY

354.

355. SERVICE UNIT 356. INVESTMENT IN PLANT AND MACHINERY

357. MICRO 358. DOES NOT EXCEED RS. 10 LAKH

359. SMALL 360. ABOVE RS. 10 LAKH AND DOES NOT

EXCEED 2 CR


361. MEDIUM ENT 362. ABOVE 2 CR AND DOES NOT EXCEED 5

CR

363. 364.

365.

366. MFG UNIT 367. INVESTMENT IN PLANT AND MACHINERY

368. MICRO 369. DOES NOT EXCEED RS. 25 LAKH

370. SMALL 371. ABOVE RS. 25 LAKH AND DOES NOT

EXCEED RS. 5 CR

372. MEDIUM 373. ABOVE RS. 5 CR AND DOES NOT EXCEED

RS. 10 CR

374. 375.

376.

377. WEAKER SECTIONS TARGET :--10 % OF ANBC OR 25 % OF PRIORITY SECTOR., SF / MF HAVING UP TO 5 ACRES OF

LAND .

378. AGRICULTURE LOANS :-- MARGIN UP TO 1 LAKH :- NIL , ABOVE 1 LAKH :-15 TO 25 %, AGRI CLINIC / AGRI BUS CENTRE

MARGIN :-UP TO 5 LAKH NIL.

379. AGRI LOANS :--SECURITY UP TO 1.50 LAKH NO SECURITY

380. PAIS :--KCC HOLDER AGE UP TO 70 PERMITTED , DEATH INS RS. 150000, PERMANENT DIS ABILITY RS. 187500 , PREMIUM

RS. 25 p. a. ( BANK RS. 17 p. a , farmer Rs. 8 p a )

381. CANARA KISAN OD :--1 YEAR SATISFACTORY DEALINGS , TENABILTY 3 YEARS, QUANTUM :- IF RECOVERY UP TO 90 %

MAX 3 TIMES OF GROSS ANNUAL INCOME, MAX LIMIT RS. 7.50 LAKH OR RS. 1 LAKH PER ACRE M, MAX 50 % OF

VALUE OF LANDED PROPERTY, IF RECOVERY MORE THAN 90 % :-MAX 4 TIMES GROSS

ANNUAL INCOME , MAX RS. 12.50 LAKH , RS. 1.50 LAKH PER ACRE OR 50 % OF VALUE OF PROPERTY .

382. SOLVENCY CERTIFICATE :=--UP TO RS. 1 LAKH WITHOUT ANY FIN STMT, AND UP TO DECLARED NET WORTH, FROM

RS. 1 LAKH TO RS. 5 LAKH UP TO ACCEPTED NETWORTH , WITH UN-AUDITED FIN STMT , ABOVE RS. 5 LAKH UP TO

ACCEPTED NET WORTH , WITH AUDITED FIN STMT., COMMISSION :-0.10 % WITH MIN RS. 500 MAX RS. 25000 PER

CERTIFICATE , FOR MSME MAX RS. 10000 .

383. CAPABILITY CERTIFICATE :--FOR SUBMISSION TO GOVT DEPT FOR TENDER APPLICATION , COMM RS. 1 PER RS. 1000,

MIN 100 MAX 500 PER CERTIFICATE .

384. PMMY:--PRADHAN MANTRI MUDRA YOJANA :- MICRO UNITS DEVELOPMENT AND REFINANCE AGENCY LTD , UP TO

MAX RS. 10 LAKH , SHISHU -UP TO RS. 50000, KISHORE 50000 TO 5 LAKH , TARUN FROM RS. 5 LAKH TO RS. 10 LAKH,

MARGIN UP TO 25000 NIL, ABOVE RS. 25000 15-25 %.

385. PMAY:--PRADHAN MANTRI AWAS YOJANA :-ANNUAL HOUSE HOLD INCOME FOR EWS ( ECONOMICALLY WEAKER SEC )

UP TO RS. 3 LAKH , FOR LIG ( LOWER INCOME GROUP ) UP TO RS. 6 LAKH, SELF EMPLOYED RS. 2.5 LAKH , MAX 4

TIMES GROSS ANNUAL INCOME WITH 40 % NTH , MAX LOAN RS. 24 LAKH. , REPAYMENT 20 YRS. NO PROCESSING FEE

UP TO RS. 6 LAKH., AGE 21- 60.

386. PROVISION :--SDIRECT ADV TO AGRIO AND MSME ( MICRO AND SMALL ) 0.25%, COMM REAL ESTATE :-1%, , ALL

OTHER LOANS AND ADV :--0.40%, RESTRUCTRED AC UNDER STD CATEGORY :-5 %, SUB STD :-SECURED 15 % ON

TOTAL O/S , UNSECURED EXPOSURE :-25 % ON O/S LIAB., DOUBTFUL ASSET:--UP TO 1 YR DA1 DEFICIT + 25% OF

SECURITY, MORE THAN 1 YR UP TO 3 YR DA2 DEFICIT + 40 % OF SECURITY, MORE THAN 3 YR 100 % FOR BOTH SECURED

/ UNSECURED , LOSS ASSET :-100 %

387. CREDIT AUDIT:-- RS. 1 CRORE AND ABOVE , LEGAL AUDIT RS. 5 CR AND ABOVE , STRESS AUDIT RS. 50 CR AND

ABOVE.

388. SWL :--STD ASSET , 5 CATEGORY A- LIMIT UP TO 1 LAKH, B—1 LAKH TO 5 LAKH, C- 5 LAKH TO 25 LAKH , D- 25 LAKH

TO 1 CR , E- ABOCE 1 CRORE.

389. QUICK MORTALITY ACCOUNTS :--NEW AC LIABILITY RS. 15 LAKH AND ABOVE , BECOMING NPA WITHIN 12 MONTHS

FROM THE DATE OF FIRST DISBURSEMENT.

390. SMA :--SPECIAL MENTION ACCOUNTS , SMA 0 :-PRINCIPAL OR INT PAYMENT NOT OVERDUE FOR MORE THAN 30

DAYS BUT AC SHOWING SIGNS OF INCIPIENT STRESS, SMA 1:--OVERDUE BETWEEN 31 -60 DAYS, SMA 2 :-OVERDUE

BETWEEN 61 - 90 DAYS.

391. CRILC :--CENTRAL REPOSITORY OF INFORMATION ON LARGE CREDITS , RS. 5 CR AND ABOVE BOTH FB /NFB

EXPOSURE .

392. THREE PILLARS OF BASEL :--MIN CAPITAL REQUIREMENT , SUPERVISORY REVIEW , MARKET DISCIPLINE.

393. CREDIT RATING AGENCIES :--DOMESTIC :--BRICKWORK RATINGS INDIA PVT LTD , CREDIT ANALYSIS AND RESEARCH

LTD , CRISIL LTD , ICRA LTD , INDIA RATINGS AND RESEARCH PVT LTD , SME RATINGS LTD ( SMERA ),

INTERNATIONAL CREDIT RATING AGENCIES :--FITCH , MOODYS, STANDARD AND POORS.

394. MODELS UNDER RISK RATINGS :--PORTFOLIO MODEL LOANS UP TO 2 LAKH, SMALL VALUE MODEL ABOCE 2 LAKH

TO 20 LAKH, MANUAL MODEL ABOVE 20 LAKH TO 200 LAKH , RAM MODEL ABOVE 200 LAKK.

395. DEATH CLAIM :-- DELEGATION OF POWER , WITHOUT NOMINEE MGR / SR MGR -UP TO RS. 2 LAKH , DM / CM UP

TO RS. 3 LAKH, AGM UP TO RS. 5 LAKH .

396. BCSBI :---BANKING CODES AND STANDARDS BOARD OF INDIA TARAPORE COMMITTEE, CHAIRMEN :- A C MAHAJAN ,

FOR DEFICIENCY OF SERVICES.

397. CIBIL :--CREDIT INFORMATION BUREU INDIA LTD , EXEMPTION :--BELOW RS. 1 LAKH LOAN , SALARY CREDIT TO AC,

CANARA PENSION , EL, LOAN AGAINST DEPOSIT, GOLD LOAN , STAFF LOAN.


403. DEPOSIT IN BANK 404. DEBTOR 405. CREDITOR

406. LOAN FROM BANK 407. CREDITOR 408. DEBTOR

409. SDL 410. LESSOR 411. LESSEE

412. SCA 413. BAILEE 414. BAILOR

415. ISSUER OF DD 416. DEBTOR 417. CREDITOR

418. COLLECTION OF CHEQUE 419. AGENT 420. PRINCIPAL

421. GOODS LEFT NEGLIGENTLY

BY CUSTOMER

422. TRUSTEE 423. BENEFICIARY

424. PLEDGE 425. PAWNER , PLEDGEE 426. PAWNEE, PLEDGER

427. HYPOTHECATION 428. HYPOTHECATEE 429. HYPOTHECATOR

430. ASSIGNMENT 431. ASSIGNEE 432. ASSIGNOR

433. MORTGAGE 434. MORTGAGEE 435. MORTGAGOR

436.

437. SMA :--SPECIAL MENTION ACCOUNTS , SMA0:- OVERDUE UP TO 30 DAYS, SMA1:-OVERDUES FROM 31 ST TO 60 DAYS,

SMA2:- OVERDUES FROM 61 ST DAY TO 90 DAYS .

438. RED FLAGGED ACCOUNTS ( RFA ) :--RS. 50 CR AND ABOVE , A SUSPICIOUS FRAUDULENT TRANS REPORTED.

439. WILLFUL DEFAULTER CUT OFF LIMIT RS.25 LAKH FIXED BY CVC .

440. LEGAL ENTITY IDENTIFIER ( L E I ) :- FOR LARGE BORROWER CORPORATE , HAVING 20 DOGIT UNIQUE CODE.

EXPOSURE RS. 5 CR AND UP TO 50 CR .

441. ATM / CASH DISPENCER POLICY:-BANK TO REIMBURSE IN 7 DAYS AMOUNT WRONGFULLY DEBITED , FASILED ATM

TRANS . COMPENSATION RS. 100 PER DAY IF COMPLAINT LODGED IN 30 DAYS BY THE CUSTOMER.

442. WORKING CAPITAL METHODS :--TURN OVER METHOD UP TO 5 CR ( SME ), NON SME UP TO 2 CR. MPBF METHOD :--

ABOVE 5 CR TO 25 CR ( SME ) , OTHER THAN SME ABOVE 2 CR , CASH BUDGET METHOD :-ABOVE 25 CRORES.

443. VALIDITY OF SACTIONS :--WC 3 MONTHS , TL 6 MONTHS , STL / ADHOC 30 DAYS.

444. ADHOC CREDIT FACILITY :--MAX 90 DAYS , MAX 2 TIMES IN A FIN YEAR , 20% OF UNEXPIRED REGULAR LIMIT ,

SCALE 4 AND ABOVE IS THE AUTHORITY.

445. TOL ( TEMPORARY OVER LIMIT ) :--MAX FOR 7 DAYS , ONCE IN A MONTH , 12 TIMES IN A FIN YEAR, 10 % OF UN

EXPIRED REGULAR LIMIT , SCALE 4 AND ABOVE IS AUTHORITY .

446. PAYMENT BANKS :--NO LENDING ACTIVITY, MUTUAL FUNDS AND INS BUSINESS , DEBIT CARD CAN ISSUE, CREDIT

CARD CANNOT ISSUE, MIN PAID UP CAPITAL RS. 100 CR , MIN CAR 15% .

447. SUKANYA SDAMRUDHHI ACCOUNT :--INDIVIDUAL ONLY, ONLY ONE AC , AGE UP TO 10 YRS, MAXC 2 GIRL CHILDREN ,

3 IN CASE OF TWINS, AADHAAR IS MANDATORY , MIN RS. 1000 MAX RS. 150000 IN F Y ., FOR 15 YRS , ACCOUNT

MATURES ON 21 YRS OF GIRL, PREMATURE CLOSURE PERMITTED , NO PENALTY , INT ONCE IN A YEAR COMPOUNDED

INT , CAN WITHDRAW AMOUNT ON ATTAINING AGE OF 18 TH OR 10 TH STD PASSED WHICHEVER IS EARLIER.

448. CANARA TRAVEL PRE PAID CARD :--NON PERSONALISED EMV CHIP CARD , AVAILABLE IN 7 CURRENCIES , USD / EURO

/ GBP / CAD / AUD / SGD / AED , CARD VALIDITY 5 YRS , CANNOT USE IN INDIA / NEPAL / BHUTAN / NORTH KOREA ./

CUBA / IRAN. , CAN BE USED FOR POS / ONLINE PAYMENT / ON LINE SHOPPING / ATM WITHDRAWAL AT FOREIGN

LOCATIONS .

449. BHARAT QR :--NO PHYSICAL POS MACHINE IS REQUIRED , SCAN AND PAY , SB /CA , MDR -CHARGES NIL UP TO RS. 2000 ,

ABOVE RS. 2000 MDR CHARGES 0.3 % MAX RS. 200 FOR MERCHANT TURNOVER UP TO RS. 20 LASKH, 0.8% MAX RS.1000

FOR MERCHANT TURNOVER ABOVE RS. 20 LAKH .


LOANS AND ADVANCES INCLUDING BALANCE SHEET ANALYSIS


1. ˜Credit Rating Agencies in India are regulated by: RBI

2. ˜CRISIL stands for: Credit Rating Information Services of India Ltd.

3. ˜Deferred Payment Guarantee is : Guarantee issued

when payment by applicant of guarantee is to be made in installments over a period of time.

4. ˜If Break Even Point is high, it can be construed that the margin of safety is ____: Low.

5. ˜Long Term uses – 12; total Assets – 30; Long Term source 16; What is net working capital : 4

6. ˜On which one of the following assets, depreciation is applied on Straight line method: Computers.

7. ˜Projected Turnover is Rs.400 lacs, margin by promoter is Rs. 20 lacs. What is maximum bank

finance as per Annual Projected Turnover method: 80 lakhs.

8. ˜Rohit was a loanee of the branch and news has come that he has expired. On enquiry, it was

observed that he left some assets. Upto what extent the legal heirs are liable to the Bank? Legal heirs are

liable for the liabilities upto the assets inherited by them.

9. ˜The appraisal of Deferred Payment Guarantee is same as that of a) Demand Loan b) OD c) Term

Loan d) CC : Term Loan.

10. A cash credit account will be treated as NPA if the CC limit is not renewed within ___days from the

due date of renewal: 180 days.

11. A director of a bank wants to raise loan of Rs 10 lakh from his bank against Life Insurance Policy with

surrender value of more than Rs 15 lakh. What will be done?: Bank can sanction.

12. A firm is allowed a limit of Rs.1.40 lac at 30% margin. It wants to avail the limit fully. How much will

be the value of security : Rs.2 lac

13. A guarantee issued for a series of transactions is called: Continuing guarantee

14. A lady who has taken a demand loan against FD come to the branch and wants to add name of her

minor son, as joint a/c holder. What you will do?: Name can be added only after adjustment of the loan.

15. A letter of credit which is issued on request of the beneficiary in favour of his supplier: Back to Back


LC

16. A loan is given by the bank on hypothecation of stock to Mr. A. Bank receives seizure order from

State Govt. What should bank do?: Bank will first adjust its dues and surplus if

Sunday, 11 October 2020

Forex operations recollected questions on 11.10.2020

 Recalled questions

1.Strike price=market price is known as

2.Esop scheme for nri employees

3.Benchmark rates by fedai

4.permissible credits in eefc account

5. Question on Call back service

6. Penal interest on premature closure of fcnr deposit

7.Trade transaction with *Myanmar* may be settled in any freely convertible currency, 

8.for benefits under ftp which date is considered

9.how is foreign trade policy announced in india

10. Schedule 2 of itc hs

11. Marine cargo insurance

12.percentage of cover to exporters under consignment exports policy

13.limit of reporting outstanding import remittance into idpms in lieu with bef statement

14.ntp for foreing currency bills is

15.for export of cardamom pcfc would be

16.in view of covid pandemic the maximum permissible period for pre shipment export credit

17.ispb para a 21

18. if there is no indication in credit of insurance coverage required cif

19.interest equalisation rate for export by msme

20. Article 13 of urdg 758

21.reimbursement bank in lc

22.ispb para a21

23.currency of the insurance policy under letter of credit be same as

24.ucp 600 article 31

25.permissible way of opening rfc domestic account

26. Scrutinizing bill of exchange in lc

27. Urr 725 article 11

28.in case of fdi by investment in equity of an indian company the max period of time for issue of share

29.fiis are are allowed to borrow equity

30. Sat is not a working day as per fedai

31. Max amt for education in foreign country

32. Permissible transactions in Captial account 

33. Conditions to grant loan to nris

34. Travel proceeds to libya

CCP recollected questions on 11.10.2020

 CCP today's question 


MSME rehabilitation limit

MSME delayed payment

SMA-0,2

NPA classification 

Agriculture Std account provision 

PCR Ratio

Debt equity ratio

NPV/IRR/Payback (capita budgeting) case study and numerical 

LC limit Calculation 

BG case study 

WC calculation 

Turnover, 1st and 2nd method of lending 

Type of Mortgage 

Stamping execution 

LLP liability 

PSLC (give priority) 

ANBC Formula 

BEP (easy numerical) 

Precautions while extending LC/BG

DPG

Credit Policy

Asset Liability Mismatch 

CRILC

IRAC Norms

Retail Assets

Reason for retail asset growth

Negative Lien

Ratio Analysis (easy questions)

Due Diligence 

Fair practices code for MSE


Overall questions were moderate and require conceptual clarity. 


All the best, freinds!

Sunday, 4 October 2020

Ten Mistakes to avoid while preparing for CAIIB exam

 Ten Mistakes to avoid while preparing for CAIIB exam


1.Not allocating sufficient amount of Study time daily:

This is a very common mistake done by many CAIIB aspirants, Cramming the information before the night of the exam or before two days may helped you in JAIIB examination (Although it is a wrong way of preparation). But here in CAIIB examination it won’t help you to even score thirty marks. A thorough understanding of concepts are needed for almost all topics so having a daily study routine is must for all aspirants.

I know it is very tough to find time during our busy banking hours. If you don’t have time for continuous 2 hrs then split the study hours into three or four sessions of 30 to 40 minutes a day. Since syllabus of CAIIB subjects cover many topics; In depth understanding of each topic is also needed to answer questions that test our knowledge, analytical skills and problem solving skills. So daily allocating sufficient amount of study time is necessary.

2.Not having clear focus on optional paper:

Selecting the correct optional paper and having clear focus on it, is must for successful completion of CAIIB exam. Although the Retail banking and Financial Banking are easy papers to clear, You need choose your optional paper based on your knowledge, interested areas in banking and career development. Don’t follow others recommendation for optional paper blindly. You have to analyse and decide your optional paper.

Remember CAIIB is not only for increments; it also provides many useful theoretical knowledge in different areas of banking.

 

3.Not learning the basic concepts:

Every topic of a subject has basic and fundamental concepts to be learnt by heart. Learning them thoroughly makes us to understand the more complex concepts. Complex concepts are nothing but complex combination of simple and basic concepts. We should have studied the fun1damental concepts in JAIIB (who knows it now ;P ;)). If not revise it then and there when it is required.

To learn the fundamental concepts of economy, business maths, accountancy you can refer more books from your commerce background friends. Remember learning complex concepts won’t be useful if you don’t understand the fundamental concepts behind them.


4.Not understanding and giving importance to syllabus:

In any examination if we want to pass that exam we should thoroughly understand the syllabus first. Because understanding the syllabus will give us a clear picture of what we are going to learn. We also get some insights about the subject. It also helps us to have an idea whether we are familiar with that topic or not. This will help you to assess the complexity of the subject and how much time you need to spend with a topic.

Give importance to syllabus helps to choose the right books for our preparation. Because there are materials that doesn’t cover the full syllabus (only the main areas of the syllabus) are available free in many study groups and websites. Aspirants who doesn’t aware of syllabus simply read those material and attend the exam.


5.Not having a preparation strategy and study plan

This is a common mistake many aspirants do, thinking there is no necessary for planning your study. They even think it is a waste of time. Whatever excuses we give, having a preparation strategy and study plan is must for any type of exam. It will help us to be goal oriented and stay focused of our target. If you do your targeted studies every day, it will make you motivated. As your progress through your schedule you will feel relaxed and your stress level for exam is reduced.

Creating a schedule will hardly take one to two hours of your time. While creating a schedule of your own you will also analyse the syllabus. There are many benefits can be pointed for having a good study plan. Though the initial effort may look too much; But the benefits are fruitful and long-lasting.

6.Not taking effective notes while studying itself

Many aspirants not even consider taking notes is a part of study. While studying if you take notes you will give importance to details. Giving importance to details will make you to ask more questions and to find short answers for it. This enhances your understanding about the topic. It also makes you to break down the contents of your learning in an easy way. Therefore your memory increases and whenever you see the notes you can recollect the content.

Thus taking notes helps you for better and easy revision. I know it is time consuming but once you are familiarised, it will be easy for you to take notes. Because your eyes can spot the important detail easily; Your mind organise them with an analogy for easy remembrance.


7.Not solving and practising mathematical problems:

Unlike JAIIB, here calculations, formulas and case studies are very important. You definitely need to solve all the problems in your study materials and work books you got. Don’t simply study a formula using one example of a problem related to it. Change the parameters and create problem of your own then solve it. By doing so, you will learn about importance of each parameter of the formula.

Practice, Practice, Practice!!!!!. There is no replacement for practising when solving problems, case studies and balance sheet analysis. When solving problems related to Balance sheet also use the same method as described above. There by we can improve our problem solving skills and analytical skills


8.Not revising the topics regularly:

Many aspirants ignore the importance of revising, stating there is no time for revising. If you are not making study plan you will not even find time to complete the syllabus. So no excuses, use your notes to revise the topic at regular intervals. For example every Sunday spare 20 to 30 minutes for revising, in addition to your study time.

 “Revise little but often” is the key strategy. Repeated revision make you feel bored and gives a feeling “Ahh!!! I know it. Don’t need to study”. But it makes you to master a topic; If five questions are asked from a single topic for knowledge testing; You can answer all, with 100% accuracy.  

9.Not learning from the mistakes:

The biggest and costliest thing is learning from your mistake. If you have failed in an attempt, accept the failure and analyse where you lacked. When I say accept your failure that doesn’t mean to blame yourself. It means asking yourself questions related to find the cause of the failure. What is the main reason for non completion of the syllabus? In which topic i should improve my knowledge? etc,. How can I improve my reading ability further?

The answer to the questions should not be too general. It should be specific to spot your weakness. When you find your weakness please work on it. Nobody is perfect in the universe; So find your weakness and mistakes; Try to rectify it before your next attempt.


10.Not using the technology for proper and effective preparation of exam:

Because of the technology we can study anything from anywhere. So use your mobile, internet, websites, facebook communities,forums and blogs etc,.You can get any information from internet in just a single click or a single press of your finger. I am not saying you to depend on them but to use them as effectively as possible. So do your search whatever you feel useful subscribe to them.

Also many websites offering free mock test use them to test your knowledge. While giving mock test take it as serious as an exam. Then only you can know your time management under pressure and boosts your confidence.

Msme Todays Recollected Questions for MSME Exam 04.10.2020

 Todays Recollected Questions for MSME Exam 04.10.2020


Cluster Approach-6 Ques.

PMEGP Scheme helps in creating -Self Employement

CGTMSE Claim % for Women Enterpreneurs

DER Ratio

DSCR Ratio

Interest Coverage Ratio

Sick Unit

MSME act 2006

many ques from Women Enterpreneur schemes etc

Friday, 2 October 2020

Very important and useful General banking bits

 Very important and useful General banking bits


1. A customer Mr Sharma had credit balance 40,000 in his saving ac and also had an OD ac with


overdue Debit balance of 20,000.Bank debits his saving account and adjusts OD ac. The bank is


said to have exercised Right of: Set-off


2. A Minor has extended Guarantee to a loan. It can be ratified by whom? It cannot be ratified by


any one.


3. A savings account becomes inoperative when it not operated for: 2 years


4. A term deposit of a HUF has become due. At the time of renewal, the Karta of HUF informs that


he has become Senior Citizen. What rate of interest will be given on term deposit? : Normal


interest rate. No benefit of senior citizen to be given


5. Additional interest is paid to senior citizens on which time FD: All fixed deposits (may vary from


bank to bank)


6. After Nomination in an account, what is the status of the nominee?: Trustee of legal heirs


7. An account of a customer can be closed in normal course on the request of the customer.


What are the other methods for closing account of a customer – (a) By negotiation; (b) As per


provisions of law; (c) After notice to customer in respect of undesirable accounts: Ans is C


8. An Illiterate person is generally not allowed to open which account – saving, term deposit,


recurring deposit, small account, Current Account: Current account.


9. As per RBI guidelines, Demand draft of Rs 50,000 and above should be issued against : by debit


to account but not against cash


10. As per RBI guidelines, minimum amount of deposit to open BSBDA account is: NIL


11. As per Sukanya Samridhi Account (SSA) the tenure of deposit is for years from the date of


opening of the account: 21 years


12. Bank is not required to produce original book of records but true copy can be submitted when


court has demanded as per which act? a) Civil procedure code b) Registration act c) B.R. Act d)


RBI act e) Banker Books Evidence Act.


13. Banker Customer relationship for deposits is ____: Debtor – Creditor.


14. Banker customer relationship in Safe Custody: Bailee Bailor.


15. Banker customer relationship in standing instruction: Agent – Principal


16. Bankers prefer Saving Deposits than Term deposits. Why?: Because cost of deposits for SB is


less.


17. Banks can decide interest rates of NRI, NRO or Term Deposits: Yes


18. Banks can raise what type of deposits?: Term and Demand Deposits


19. Banks should have the responsibility of currency management entrusted to a nodal official of the


rank not less than that of a General Manager and will be accountable for the obligations cast


upon currency chests by the Reserve Bank.


20. BC work as : Bank’s Agent


21. Business Correspondent can be identified by whom?: BDO,Post Master, Head of Village


Panchayat, other BC.


22. Business correspondents for banking for : serving weaker sections of society


23. Call money deposit is part of the sector : Organised sector


24. Complaints under Consumer forum should be dealt with within (Where no testing of commodities


is required) : 90 days.


25. Customer OD A/c has overdrawn Rs 2000/-. Saving A/c has balance Rs 3000. The bank adjusts


the OD A/c by which right: Set off.


26. DD of Rs.50000/- in cash : not allowed


27. Death claim settlement in how many days?: 15 days


28. Deposits held in Joint accounts; b) Corporate Deposits; c)


Inter-Bank deposit; d) Deposits of HUFs: Ans is Inter-Bank deposits.


29. Deposits which are not claimed for__years are required to be transferred by banks to


RBI: 10 years


30. DICGC cover is available in which of the following cases a) Credit balance in Cash Credit Account


b) Overdue Deposit c) Deposit of Government Department?: A & B


31. Differential rate of interest can be paid on fixed deposit if single deposit is for: Rs.1.00 crore


and above


32. Direct Tax Code will replace which of the following – Income Tax Act, Corporate Tax Act: Income


Tax Act.


33. Encashment of FOR with interest - payment can be made in cash if it is less than Rs 20000


34. Financial Inclusion means: providing banking services at affordable cost to the poor/distressed.


35. FULL FORM OF CASA? : CURRENT ACCOUNT & SAVING ACCOUNT


36. Garnishee order is not applicable to: a) Savings b) Current c) FD d) CC/OD with debit


balance: CC/OD with debit balance.


37. Govt. has decided to demonetize all the coins of paise 25 and below w.e.f. 30-6-2011.


38. How much amount can be deposited in a small account in a financial year?: Rs one lac


39. How much amount can be withdrawn from a small account in a month?: Rs 10,000


40. If in Garnishee Order no amount is mentioned, what should the bank do? Full amount to be


attached.


41. If payment of Rs 20000/- is made in cash in case of FDR what is the penalty: equal to the


amount paid


42. Illiterate account holder, how many witness for nomination: two


43. In Basic Savings Bank Deposit Account in all their accounts taken together and the total credit in


all the accounts taken together is not expected to exceed _____ in a year has been simplified to


enable those belonging to low income groups without documents of identity and proof of


residence to open banks accounts: 1,00,000/-.


44. In case Fixed Deposits account the rate of interest fixed by whom: Board of Directors of


respective bank.


45. In case of a/c transfer, with in how many days the address proof has to be submitted in the


transferee branch? Six Months


46. In case of an illiterate customer, process of nomination requires witnesses by how many


persons?: Thumb impression requires 2 witnesses.


47. In case of Deposit Insurance whether it mandatory or not: It is Mandatory for all banks.


48. In case of Deposit Insurance, Insurance premium is paid to DICGC by bank and depositor in


which ratio?: Entirely by bank.


49. In case of insurance of deposits by DICGC, premium is paid by: Bank. 100% of the premium


is paid by the bank and not by depositor.


50. In case of insurance of deposits by DICGC, what is the premium sharing ratio between bank and


depositor?: 100% of insurance premium is paid by the bank.


51. In case of Minor what is wrong? Minor can make himself liable for his actions.


52. IN CASE OF TRANSFER OF ACCOUNT, WITHIN HOW MANY DAYS, THE ACCOUNT HOLDER


SHOULD ADVISE NEW ADDRESS?: TWO WEEKS


53. In how many years of no transaction does a saving and current account become inoperative? :


two years


54. In Limited liability Partnership what is the liability of partner?: Amount agreed to be


contributed by partner at the time of joining partnership.


55. In saving accounts, interest is calculated on the basis of: daily product basis.


56. In Senior Citizen Saving Scheme account, who can be joint account holder?:Spouse


57. In small accounts as per RBI- No min. balance, nil/minimal charges etc


58. In small accounts monthly withdrawals to be upto- Rs.10000/-


59. Insurance of deposit is done by DICGC up to: Rs 1 lac per depositor per bank.


60. Interest rate on Saving Deposit is decided by : Banks individually


61. Interest rate on Savings accounts: Not regulated by RBI


62. Max amt for tax saver FD: Rs 150000


63. Maximum amount of deposit in Tax Saving Scheme of the bank can be: Rs 1,50,000


64. Maximum deposit for allocating a locker: 3 year advance rent plus locker breaking charges


65. Maximum period of NRE deposit: Bank Discretion.


66. Minimum and Maximum amount that can be deposited in PPF account is _____: Minimum Rs.


500/- & Maximum Rs. 1.50 lacs.


67. Minimum Lock in period for Tax saver FDR: 5 Years


68. Minimum Maturity Period for Certificate of Deposit is : 7 days


69. Missing person treated as having expired if missing for: 7 years


70. No Frills Accounts are opened for: Financial Inclusion


71. No of digits in Aadhar : 12


72. Non Resident (External) fixed deposit is normally accepted for a period of (a) 1 year to 3 year


(b) 1year to 5 year (c) 1 year to 4 year (d) 1 year to 7 year (e) 6 months to 3 year: 1 year to 3


year (As per RBI it is minimum 1 year and maximum bank discretion)


73. OD in PMJDY account upto: Rs. 5,000/-.


74. On a cheque presented for payment, amount is written in words but all other items are written in


Regional Language. What should the bank do?: Pay the cheque


75. Pensioner account can be opened jointly with? Spouse as Either of Survivor or Former or


Survivor.


76. Rate of Interest in Sukanya Samridhi Account for 2015-16: 9.20% & 8.6% FOR 2016-17


77. Relation between bank and judgment debtor: debtor & creditor.


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


79. Star series note can be issued in denomination of Rs 100 also. (earlier only Rs 10, 20 & 50)


80. Super senior citizen after: 80 years of age


81. The balance in the account is Rs 15000. A cheque of Rs 30000 was sent for collection. Before it


is realized a cheque for Rs 20000 has been presented for payment. What should the bank do –


(a) Return with reason effects not yet cleared. Present again; (b) Pay the cheque; (c) Return


with reason exceeds arrangement; (d) Return with reason Refer to Drawer; (e) Return with


reason Insufficient Funds: Insufficient Funds


82. The minimum & maximum period of certificate of deposit is : 7 days, 12 months


83. There is a credit balance in the saving account and there is a overdraft in the current account


amounting to Rs 555. Both accounts are in the same name. Bank wants to adjust credit balance


of saving bank account towards payment of overdraft. As per which right, bank can do this?:


Right of Set Off.


84. Under Sukanya Samridhi Account (SSA) the maximum period upto which the deposits can be


made is for ___ years from the date of opening of the account: 14 years


85. Under Sukanya Samridhi Account (SSA) the minimum amount of deposit is Rs 1,000 and Under


Sukanya Samridhi Account (SSA), the bank account will be opened for a girl child upto the age


of: 10 years


86. Under Sukanya Samridhi Account (SSA), the current rate of interest on deposits is which is the


highest amongst all other Govt. Saving Schemes: 9.20% & 8.6% FOR 2016-17


87. What are the Service charges for using ATMs of other banks for balance enquiries: Rs.20 for


Financial & Rs. 10 for Non- Financial upto 5 transactions ( 3 at Metros)


88. What documents are required for opening a small account?: Self attested photo and address


89. What is the bankers-customer relationship in case of deposits? Debtor – Creditor


90. What is the distance criteria for office of Business Correspondent?: The distance between the


place of business of a retail outlet/sub-agent of BC and the base branch should ordinarily not


exceed 30 kms in rural, semi-urban and urban areas and 5 kms in metropolitan centers.


91. What is the maximum amount of loan that can be granted against FCNR deposit? No limit.


92. What is the periodicity of review of risk classification of customers?: Every six months


93. What is the rate of interest payable on an overdue FD for overdue period if customer demands


payment and does not renew the same?: Saving Bank Rate


94. What is the special feature of Basic banking Account? Account can be opened with nil or very


small amount and there are no requirement of minimum balance.


95. What type of account can be opened in the name of NRI jointly with residents? NRO /NRE/FCNR


(earlier only NRO)


96. What type of activity can be performed by Business Correspondent - (a) processing and


submission of applications to banks; (b) disbursal of small value credit, (c) recovery of principal /


collection of interest (iv) collection of small value deposits: All of these


97. When a person wants to open an account with a bank but does not have proof of identification


and address, what type of account can be opened?: Small account


98. When Letter of Administration issued: When the person dies without leaving the Will- Intestate.


99. Whether “WILL” has to be registered? Not required.


100. Which form is used for cancellation of nomination in deposit accounts?: DA -2


101. Which is not a proof of Identity?: Ration card.


102. Which is the most important document for opening a Trust Account?: Trust Deed


103. Which of the following forms will be used for allowing exemption to a depositor aged 61 years


: Form 15 H


104. Which of these rates are periodically reviewed by RBI?: Repo rate, Bank rate, but not Savings


Bank Rate.


105. While opening account, a bank, in addition to observing various provisions of Indian Contract


Act should also – exercise utmost care and attention; look at profitability from account; exercise


due diligence: Due diligence


106. While opening the account with a bank, prospective customer is required to submit – PAN No


or Form 60 or 61


107. Who are eligible for preferential rate of interest under NRE deposits: a) Staff b) Senior citizen


c) Staff cum Senior Citizen d) none of these?: None of these


108. Who can do nomination in the account of a Minor?: Can be done by guardian not by


minor


109. Who of the following can exercise nomination – HUF, limited company, trust, Partnership firm,


sole proprietorship firm?: Sole Proprietorship firm.


Loans and advances including balance sheet analysis

 LOANS AND ADVANCES INCLUDING BALANCE SHEET ANALYSIS


1. ˜Credit Rating Agencies in India are regulated by: RBI

2. ˜CRISIL stands for: Credit Rating Information Services of India Ltd.

3. ˜Deferred Payment Guarantee is : Guarantee issued

when payment by applicant of guarantee is to be made in installments over a period of time.

4. ˜If Break Even Point is high, it can be construed that the margin of safety is ____: Low.

5. ˜Long Term uses – 12; total Assets – 30; Long Term source 16; What is net working capital : 4

6. ˜On which one of the following assets, depreciation is applied on Straight line method: Computers.

7. ˜Projected Turnover is Rs.400 lacs, margin by promoter is Rs. 20 lacs. What is maximum bank

finance as per Annual Projected Turnover method: 80 lakhs.

8. ˜Rohit was a loanee of the branch and news has come that he has expired. On enquiry, it was

observed that he left some assets. Upto what extent the legal heirs are liable to the Bank? Legal heirs are

liable for the liabilities upto the assets inherited by them.

9. ˜The appraisal of Deferred Payment Guarantee is same as that of a) Demand Loan b) OD c) Term

Loan d) CC : Term Loan.

10. A cash credit account will be treated as NPA if the CC limit is not renewed within ___days from the

due date of renewal: 180 days.

11. A director of a bank wants to raise loan of Rs 10 lakh from his bank against Life Insurance Policy with

surrender value of more than Rs 15 lakh. What will be done?: Bank can sanction.

12. A firm is allowed a limit of Rs.1.40 lac at 30% margin. It wants to avail the limit fully. How much will

be the value of security : Rs.2 lac

13. A guarantee issued for a series of transactions is called: Continuing guarantee

14. A lady who has taken a demand loan against FD come to the branch and wants to add name of her

minor son, as joint a/c holder. What you will do?: Name can be added only after adjustment of the loan.

15. A letter of credit which is issued on request of the beneficiary in favour of his supplier: Back to Back


LC

16. A loan is given by the bank on hypothecation of stock to Mr. A. Bank receives seizure order from

State Govt. What should bank do?: Bank will first adjust its dues and surplus if any wilt be shared with

the Govt.

17. A loan was sanctioned against a vacant land. Subsequently a house was constructed at the site.

What security is available now to the bank? : Both

18. A minor was given loan. On attaining majority he acknowledges having taken loan and promises to

pay. Whether the loan can be recovered? : He can not ratify the contract. Hence recovery not possible.

19. A negotiating bank and issuing bank are allowed days each for scrutiny of documents drawn

under Letter of credit to ensure that documents are as per LC: 5 banking days each.

20. Age limit staff housing loan: 70 years;

21. An L/C is expiring on 10.05.2008. A commotion takes place in the area and bank could not open.

Under these circumstances can the LC be negotiated?: The L/C can not be negotiated because expiry date

of LC can not be extended if banks are closed for reasons beyond their control.

22. As per internal policy of certain banks, the net worth of a firm does not include: a. Paid up capital b.

Free Reserve c. Share Premium d. Equity received from Foreign Investor : Revaluation Reserves

23. Authorised capital is Rs.10 lac. Paid up capital Rs.6 lac. The loss of previous year is Rs.1 lac. Loss in

current year is Rs3 _ lac. The tangible net worth is : Rs.2 lac

24. Authorised capital= 10 lac, paid-up capital = 60%, loss during current year = 50000, loss last year =

2 lacs, what is the tangible net worth of the company? : 3.5 lac

25. Bailment of goods by a person to another person, to secure a loan is called : Pledge

26. Balance outstanding in a CC limit is Rs.9 lakh. Value of stock is Rs.5 lakhs. It is in doubtfUl for more

than two years as on 31 March 2012. What is the amount of provision to be made on 31-03-2013?: Rs.9

lakhs (100% of liability as account is doubtful for more than 3 years)

27. Balance Sheet of a firm indicates which of the following – Balance Sheet indicates what a firm

owes and what a firm owns as on a particular date.

28. Bank limit for working capital based on turn over method: 20% of the projected sales turnover

accepted by Banks

29. Banks are required to declare their financial results quarterly as per provisions of : SEBI

30. Banks are required to maintain -a margin of ___ for issuing Guarantee favouring stock exchange on

behalf of share Brokers.

31. Banks are required to obtain audited financial papers from non corporate borrowers for granting

working capital limit of: Rs.25 lakh &above

32. Banks provide term loans and deferred payment guarantee to finance capital assets like plant and

machinery. What is the difference between these two: Outlay of funds.

33. Benchmark Current Ratio under turn over method is: 1.25

34. Break Even Point: No profit no loss. ( TR-TC=Zero)

35. Calculate Debt Equity ratio – Debenture – Rs 200, capital 50; reserves – 80; P& L account credit

balance – Rs 20: 4: 3 ( 200 divided by 150).

36. Calculate Net working capital– Total assets 1000; Long Term liabilities 400; Fixed assets, Intangible

assets and Non current assets (i.e. long term uses) Rs 350; What is net working capital : 400- 350= Rs

50

37. Calculate Tangible Net Worth: Land and building: 200 Lacs; Capital:80000 intangible asset:15000:


65,000

38. CALCULATION OF INTEREST IN LOAN ACCOUNT: MONTHLY

39. CARE stands for : Credit Analysis & Research Ltd

40. Cash Budget method is used for sanctioning working capital limits to : Seasonal Industries

41. CC limit Rs 4 lacs. Stock 6 lacs. Margin 25% . What is drawing power? : NOTIONAL - 4.5 lacs, BUT

ACTUAL Rs. 4 LAC.

42. Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) is a

government company licensed under Section 25 of the Companies Act, has been incorporated to operate

and maintain the Central Registry under the provisions of _____: SARFAESI Act 2002.

43. CIBIL is the agency that provides information to the member banks on (i) Credit Rating (ii)

Information on credit History: Information on Credit History of borrowers

44. Contribution means : profit + fixed cost

45. Current Assets 600, Long Term sources - 600, Total Assests1000, what is NWC and Current Ratio: CR

1.5 : 1; NWC = 200 .

46. Current Liabilities are those liabilities which are to be paid: within one Year

47. Current Ratio = 2:1, Net working Capital=60000, What is the Current Liability of the firm? : 60000

48. Current ratio indicates: Liquidity of the firm (ability of a firm to pay current liabilities in time)

49. Current Ratio is 1.33:1, Current Assets is 100, what will be the amount of Current Liability: 75 lakhs

Compiled by Sanjay Kumar Trivedy, Divisional Manager, Canara Bank, Govt. Link Cell, Nagpur 138 | P a g e

50. Debt Equity Ratio indicates: Long term solvency or capital structure of the firm.

51. Debt Securitization refers to: Conversion of receivables into debt instruments.

52. Debt Service coverage ratio is used for: Sanction of Term Loans

53. Deferred Payment guarantee is: Financial Guarantee

54. Deferred payment guarantee issued by a bank is a : Contingent Liability.

55. Difference between Long Term Source and Long Term Use is called: Net Working capital.

56. DSCR indicates: Ability of firm to repay term loan instalments

57. DSCR is for evaluating: Term Loan repayment-surplus generating capacity.

58. Duty of confirming bank: Only to verify the genuineness of L/C.

59. Equitable Mortgage is created by deposit of title deeds with bank at – (a) any where in India; (b)

state capital; (c) only at Mumbai, Chennai or Kolkatta; (d) Any place notified by state government for this

purpose: Correct answer is (d).

60. Excess of current liability over current assets means the firm may face difficulties in meeting its

financial obligations in short term.

61. Expand CRILC: Central Repository of Information on large credits.

62. Expand IRR : Internal Rate of Return

63. Finance for construction of road and port is classified as: Infrastructure Finance.

64. For ascertaining that a firm will be able to generate sufficient profit to repay instalments of term

loan, which ratio is computed?: Debt Service Coverage Ratio

65. For assessing Fund Based Working Capital limit for MSME upto _______Turnover method is followed

under Nayak committee: Rs.5 crore.

66. For classification of assets in consortium accounts, which of the following is to be considered?: In

consortium accounts, each bank will classify the account as per its record of recovery.

67. For Takeover of accounts from other Banks, the account copies of all the borrower accounts with the

present bankers / financial institution shall be obtained at least for the last ______: 12 months.

68. Formation of consortium, when essential : When bank touches its exposure ceiling

69. Full form of DSCR: Debt Service coverage ratio;

70. Gold is pledged with bank as security for a Bank Guarantee by a borrower. Bank Guarantee stands

expired. Whether a temporary overdraft availed by the borrower which is overdue can be got adjusted by

selling the Gold held as security for issue of guarantee: Yes, because Bankers lien is a general lien and is

an implied pledge. Further, the Gold was deposited in the ordinary course of business.

71. Green field project is related to : setting up new projects

72. Guarantee issued by a bank in favour of Custom department that party will fulfill export obligation for

availing exemption from custom duty regarding tax. Such guarantee is called: Financial Guarantee

73. Guarantee issued by a bank which is still outstanding is shown in the Balance Sheet as: Contingent

Liability.

74. Guarantors Liability: Recall the a/c and cause demand against the borrower and guarantor. Balance

in guarantor's SB a/c cannot be appropriated directly.

75. Holiday period given for repayment of installements in a loan is termed as: Moratorium period

76. How DSCR is calculated?: (Profitafter tax + Depreciation + Interest on Term Loan) divided by (Annual

instalment of term loan+ interest on term loan)

77. How much additional risk weight has been provided on restructured loans?: 25%

78. Hypothecation can be converted to pledge by: taking possession with the consent of the borrower.

79. Hypothecation described under SARFEASI Act.

80. If a businessman start a business with a Capital investment of Rs.3,00,000/- and withdraw

Rs.25,000/- later. If Net Profit is Rs.1,20,000/- and income tax paid thereon is Rs.30,000/-, what is the

position of capital account (net worth) at the end of the year – 395000; 365000; 360000; nil:

Rs.3,65,000/-

81. If a LC contains a clause "about" regarding the amount and quantity of goods, how much tolerance is

permitted?: 10%

82. If current ratio is 2:1, net working capital is Rs 20,000, current asset will be: Rs 40,000

83. If debtors are Rs 4 lac, annual sale is 60 lac, what is the Debt collection period: 0.8 months

84. If Debtors velocity ratio increases, it means debt collection period has increased or sales have

decreased.

85. If documents are to be presented in about July month: these can be presented within 5 days before

or 5 days after.

86. If in a Guarantee issued is silent, what will be the limitation period: 3 yrs and in case of Govt

guarantee it is 30 years.

87. If in a LC words around is written with date then variation of is allowed in the period: +/- 5 calendar

days

88. If limit is 3 lacs, margin is 25% what should be stock to avail full limit?: Rs4 lac

89. If on a letter of credit it is not mentioned whether it is revocable or irrevocable, then as UCPDC 600, it

will be treated as : Irrevocable LC

90. If on a Letter of Credit, date is mentioned as "end of the month", then as per UCPDC 600, it will

mean: 21st to last day of the month.

91. If stock statement is not submitted for 3 months from its due date and DP is allowed on the basis of


old stock report, then the account will be considered NPA after:90 days

92. If the projected sale of a-small (manufacturing) enterprise is Rs 80 lakh, margin available with the

borrower is Rs 4 lakh, then as per turnover method, working capital limit will be: Rs 16 lakh.

93. If working capital limit to a borrower is Rs 10 crore and above, then as per RBI guidelines, the loan

component should be at least: as per bank's discretion.(earlier it used to be 80%).

94. In a company, the registration of charges is required for: a)loan against FD b)lien on Govt Securities

c) assignment of Book Debts d) lien on Shares : Book Debts

95. In A current account OD of Rs. 12000 is made. The FDR has become due later on if the right of

appropriation can be used. The borrower has objected that he never requested for overdraft, hence

payment can not be appropriated. The customer is right.

96. In a letter of credit, it is written that documents can be negotiated about 30th June. In this case, the

documents can be negotiated: Before or after 5 clays of 30th June.

97. In case of a loan under consortium, each bank can have Maximum working capital limit of Rs-No

rule in this regard. Rules of consortium to be framed by members of consortium.

98. In case of loan given by more than one bank under a consortium, how the asset classification is done

by various banks?: Each bank will classify the account based on its record of recovery.

99. In case of revaluation of fixed assets, what percentage of revaluation reserve will be added to Tier

II capital of the bank?: 45%

100. In Letter Of Credit jmporter is called: Opener of Letter of Credit

101. In project finance, Debt Equity Ratio requirement for other than Infrastructure finance is: 2:1

102. In respect of a project report, the feasibility which is given least importance by the preparers of the

report, but very important for a banker is : a) Commercial b) Technical c) economic d) financial Ans: C

103. In the Balance Sheet of a bank, Contingent Liabilities are shown as: footnote to the Balance Sheet.

104. In the case of advance to a limited company for purchase of vehicle, the charge is registered with

Regional Transport Authority in addition to registration of charge with. Registrar of Companies. Why this is

done?:So that borrower can not sell the vehicle without intimation to the bank

105. Interest rate on advances is related to – Bank rate; Base Rate; PLR: MCLR Rate

106. Limit sanctioned Rs 5 lac; Stock Rs 6 lac; Margin 25%; What will be Drawing power: Rs 4.5 lac

107. Loan Delivery System is not applicable to: a) Loan to Soft ware industry b) export credit: export

credit

108. Loan Delivery System suggested by Rashid Mani Committee is applicable on borrowers with working

capital limits of: Rs 10 crore and above

109. Loan is in the name of A&B. Both have signed documents. A signs the Balance Confirmation but B

does not. In this case limitation will extend against: both

110. Lorry Receipts issued by Transport Operators approved by IBA are preferred. The reason is the

Transport Operators will take care of: Carriers Risk.

111. Stand by LC is just like : Financial guarantee (A guarantee of payment issued by a bank on behalf of a

client that is used as "payment of last resort" should the client fail to fulfill a contractual commitment with

a third party. Standby letters of credit are created as a sign of good faith in business transactions, and are

proof of a buyer's credit quality and repayment abilities)

112. Standard Score under CIBIL: 300 to 900

113. Stock Audit is required in respect of loans of : Rs.1.00 crore & above

114. Subordinate Debt is shown as part of in the Balance Sheet of a bank: Other Liabilities and

Provisions

115. Tangible Net Worth (TNW) is calculated as: Total paid up capital + Reserves – Intangible Assets.

116. The appraisal of deferred payment guarantee is similar to term loan: The difference is outlay of funds.

117. THE APPRAISAL OF DEFERRED PAYMENT GUARANTEE IS SIMILAR TO: TERM LOAN

118. The Audited Balance sheet for the latest financial year is to be obtained within ______ to finalise

credit rating and re-fix interest accordingly: 6 months.

119. The Bank did not disclose all material facts regarding loan to the guarantor while obtaining

guarantee. Can guarantor escape liability?: Guarantor cannot escape from his liability as it is not

necessary to disclose all the materials facts with regards to the loan.

120. The Borrower has to bring funds as his contribution for loan from: Long term Sources

121. The charge on stocks is created by: Hypothecation ( also by pledge or lien)

122. The concept of Base Rate is not applicable in the case of: Loan against Bank’s own deposit

123. The limitations of financial statements are : only quantitative not qualitative.

124. The long term liability to tangible net worth ratio implies : Long term solvency of the firm .

125. The main distinction between Hypothecation and Pledge is on accountof : Possession

126. The Meaning of Debtor Velocity Ratio is: Cycle of Debt Collection Period

127. The procedure used for ascertaining Customers Credit worth is called: Credit Rating

128. Time Limit for registration of equitable mortgage with CERSAI: 30 days from date of deposit of

title deeds. (Normally 30days and then delay can be condoned up to 30days on payment of penalty).

129. To improve Current Ratio of 2:1, what has to be done? a) Recover cash from Receivables b) Cash

sales c) Decrease the Bills payables.

130. Total Indebtedness Ratio is represented by: Total outside liabilities divided by Tangible Net Worth

131. What is "pari passu" means: Sharing in the ratio of outstanding.

132. What is a Break even point-The level of sales at which a firm does not earn any profit and does not

incur any loss.

133. What is cash loss : net loss before depreciation (Net loss minus depreciation)

134. What is Deffered Payment Guarantee?: Guarantee issued when payment by applicant of

guarantee is to be made in instalments over a period of time.

135. What is Mortgage? Transfer of interest in specific immovable property to secure an existing

or future debt.

136. What is nature of Banker's Lien?: It is implied pledge because Banker can dispose-off the goods after

giving notice to the borrower.

137. What is Pari Passu charge?: In case of consortium advance sale proceeds of security will be

shared among banks in proportion to their outstanding.

138. What is Real Rate of Interest?: Prevailing interest rate minus inflation rate

139. What is the meaning of Group in Exposure Norms: Commonality of management & Effective Control

140. What is the relationship between bank and customers in case of overdraft?: Creditor and Debtor

141. What is the risk weight for Personal Loans? 125%

142. What is the risk weight for Unrated companies?: 100%

143. What is the type of liability for the bank on account of issue of Bank Guarantee?: Contingent Liability

144. What type of bank gaurentee bank gives when a customer purchases a machine on instalment basis?:

Deferred Payment guarantee.

145. What type of Guarantee is Deffered Payment Guarantee: Financial Guarantee

146. What type of liability is represented by Bank Guarantee?: Contingent Liability and shown as a

footnote in the Balance Sheet.

147. What will be the tangible net worth if total assets are Rs 35 crore; total outside liability Rs 30 crore;

intangible assets Rs 3 crore: Rs 2 crore

148. What will happen in case of negative working capital limit: Current Liabilities are more than

Current Assets

149. Which is not a Credit Rating Agency – CRISIL, CARE, SMERA, ICRA, CIBIL: CIBIL

150. Which is not found in operating expenses statement of P&L statement - Salaries, Rent, Power: Power

151. Which is not included in Contingent liability – Bank Guarantee; Letter of Credit; Forward Contract;

Bills Payable: Bills payable

152. Which of the following is a contingent liability – deposits, borrowings, capital, guarantee: Bank

Guarantee

153. Which of the following is a Credit Information company – CIBIL, FIMDA, AMFI, CRISIL: CRISIL

154. Which of the following is part of the Solvency Ratios: debt equity ratio.

155. Which of the following represent Debt Service Coverage Ratio: (Net Profit after tax + Depreciation

+ Interest on Term loan) divided by (Annual instalment of term loan + interest on term loan)

156. Which of the items will not be an asset in banks bal sheet: Advances/Fixed Asset / Deposits :

Deposits

157. Which one of following is credit information company?: Equifax

158. Which system replaced Benchmark Prime Lending rate in banks: Base Rate

159. While arriving Drawing Power for financing against book debts, only Book Debts _____and below are

to be taken in to consideration. (other than MSME advances): 90 days

160. While doing Project Appraisal, sensitivity analysis is useful for: Viability and sustainability of project.

161. While financing for TL, Bank should look for the ability of the firm to generate the income to service

the debt

162. While granting loans to a partnership, banks generally insist that the firm should be registered

whereas registration of a partnership firm is optional. What is the reason for the same?: An

unregistered firm can not sue its debtors for recovery of its dues whereas other can sue the

firm for recovery of their dues

163. While undertaking technical appraisal, the following is not considered: cost of production and sales (it

is used for economic viability).

164. Who is bound to file particulars of charge with the Registrar of Companies under MCA 21, when a

company creates charge of somebody on its movable or immovable property except by way of

pledge?: officials of the company.

165. Why banks do not grant loan to a minor?: A minor is not competent to contract Therefore, Ioan given

to a minor can not be recovered.

166. Why banks ensure that charge created on any asset of the company should be registered with ROC

within stipulated period?: If charge is not registered, bank will become unsecured creditor.

167. Why banks prefer financing of bills?: because the advance is self liquidating

168. Why fund flow statement is taken from the borrower?: To know sources from where funds have been

raised and how funds have been utilized and to know changes in net working capital position.

169. Why loan against Partly Paid Shares are not preferred by banks?: Because partly paid shares

represent contingent liability. In case company makes demand and the borrower does not pay the

amount then the bank will have to pay the amount otherwise share may be forfeited. Moreover it is

prohibited by RBI

170. Working capital requirement of a firm is required to be met through : Short term sources and surplus


of long term sources over long term uses