Objective Questions For Clerical To Officer Cadre Promotion Test

Q) 1.
RBI s open market operation transactions are carried out with a view to
regulate ___________
Ans: All the above
Q) 2. Which of The following states has launcghed Panch Parmeshwar Yojana

under which panchayats are allowed to use the fund for developing infrastructure
and basic amenities in villages?
Ans: Madhya Pradesh
Q) 3. Rajender had field a complaint with Banking Ombudsman but is not

satisfied with the decision. What is the next option before him for getting his
matter resolved?
Ans: File an appeal before the Day Governor of RBi
Q) 4. Which among the following regulate the commodity markets in India? 1. RBI
2. SEBI 3. Forward Market Commission Choose the correct option from the codes
given below:
Ans: Only 3
Q) 5. While promoting India as an investment destination, recently India?s
Finance Minister said that the ?financial protectionism? by the industrial
countries is an issue of concerns. Which among the following best defines the
Financial Protectionism?
Ans: Imposing barriers to inward or outward capital flows.
Q) 6. One of the headlines in the news papers recently read: Rupee tumbled 10
paise at one-week low of 54.62. Which among the following can tumble the
Rupee down? 1)Sustained dollar demand from importers 2)Capital outflows
3)Rupee showing bearish trend in currency market Choose the correct option
from the codes given below:
Ans: 1, 2 &3
Q) 7. Recently, India and Malta have renegotiated and signed the revised Double
Taxation Avoidance Agreement (DTAA) to align with global norms and changes in
domestic laws. Malta is one of the most developed countries in world with its
capital at __:
Ans: Valletta.
Q) 8. A commercial bank will launch a medium term note (MTN) programme to

___:
Ans: Raise Funds
Q) 9. The recently released data on India?s services exports reveal that India?s
services exports rose by 9.5 percent to USD 12.28 billion. The data on India?s
services trade is released by __?
Ans: Reserve Bank of India (RBI)
Q) 10. Once a Budget has been presented in the Parliament, the government has
to get all money bills related to the union budget passed within __?
Ans: 75 Days
Q) 11. Approximately, what fraction of India?s total exports is contributed by the

Micro, Small and Medium Enterprises (MSME) sector ?
Ans: 40%
Q) 12. The appointments of Banking Ombudsman will be carried out by which of

the following?
Ans: RBI
Q) 13. All the Venture Capital Funds must be registered and should get a grant of
certificate from which of the following?
Ans: SEBI
Q) 14. After the recommendations of which of the following committee the

Regional Rural Banks were setup?
Ans: Narasimhan Committee
Q) 15. Self Help Group (SHG) Bank Linkgage programme was first launched by
Ans: NABARD
Q) 16. As part of the Financial Inclusion the following acts as an alternative to the
Branch Banking.
Ans: Mobile banking
Q) 17. The Know Your Customer (KYC) norms of opening a bank account has been
relaxed for the accounts with minimum balance of
Ans: Rs.50,000/-
Q) 18. The Bank for International Settlements (BIS) which provides the Banking
supervision accords is located in which country
Ans: Switzerland
Q) 19. What is the Cash Reserve Ratio (CRR) at present?

Ans: 4%%
Q) 20. The first stock exchange in india was established in?

Ans: Bombay
Q) 21. An outside panel of experts to screen applications for new bank licenses
will be headed by?
Ans: Bimal jalan
Q) 22. In the capital market, the term arbitrage is used with reference to
__________
Ans: simultaneous purchase and sale of securities to make profits from price
variations in different markets
Q) 23. Which country has started paying Indian exporters in Indian Rupees, after
an arrangement to that effect has been done by Government of India?
Ans: Iran
Q) 24. At what interest rate percent per annum, The Union Cabinet gave its
approval to continue interest subsidy to Public Sector Banks (PSBs), Regional
Rural Banks (RRBs), Cooperatives Banks and NABARD enabling them to provide
short-term crop loans of up to Rs 3 lakhs to farmers during the year 2012?13?
Ans: 7 percent Per annum
Q) 25. Which of the following are salient features of special electronic fund
transfer scheme?
Ans: None of the above
Q) 26.The Deposit insurance facility provided by the DICGC is not available for
which of the following
Ans: NBFCs
Q) 27. Which of the following statement is true about foreign banks?

Ans: Bank which headquarter in a foreign country but operate their branches in
our country
Q) 28. In which state the 15000th branch of SBI was opened on 17th August
2013.
Ans: Tamilnadu
Q) 29. Which of the following banks are planning to launch ?by-invitation-only?

branches under Kohinoor brand in 20 cities which will serve affluent customers ?
Ans: SBI
Q) 30. FDI refers to?

Ans: Foreign Direct Investment
Q) 31. Bring out the only incorrect statement:

Ans: Rupee appreciation results in decrease in imports
Q) 32. What is a Repo Rate?

Ans: It is a rate at which banks borrow rupees from RBI
Q) 33. Which of the following cannot be called as a Debt Instrument as referred

in financial transactions?
Ans: Stocks
Q) 34. What is Call Money ?

Ans: Money borrowed or lent for a day or over night
Q) 35. Which among the following panels have recently recommended the
pricing of natural gas by a complex methodology of arriving at an average of
international gas hub prices?
Ans: C Rangrajan Panel
Q) 36. Base Rate is the rate below which no Bank can allow their lending to
anyone. Who sets up this Base Rate for Banks?
Ans: Individual Banks board.
Q) 37. Bad advances of a Bank are called

Ans: Non performing Asset
Q) 38. Recently which bank has bought bonds through open market operations
as part of its programme to infuse liquidity?
Ans: RBI
Q) 39. As per the reports in various newspapers, many private companies are
trying to obtain the licences to start their banking company in India. Which of the
following organiza tions/agencies issues the license for the same?
Ans: RBI
Q) 40. Banks generally borrow funds from which of the following money markets
to meet the mandatory Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio
(SLR) requirements as stipulated by the Central bank?
Ans: Call Money Market
1.The Total Priority Sector target of 40 percent for foreign banks with less than
20 branches has to be achieved in a phased manner by the year: Ans: 2019-20
2. ANBC: ADJUSTED NET BANK CREDIT
3. How is the computation of interest on savings bank deposits done by banks?
Ans: With effect from April 1, 2010 payment of interest on savings bank accounts
by scheduled commercial banks would be calculated on a daily product basis
4. Whether banks can prematurely repay term deposits on their own?
Ans: A term deposit is a contract between the bank and the customer for a
definite term and it cannot be paid prematurely at the bank's option. However, a
term deposit can be paid prematurely at the request of the customer subject to
the terms of the contract, including penalty, if any.
5. How and when are banks required to pay interest on the deposits maturing on
holiday/ non-business working day/ Sunday?
Ans: Whenever the due dates fall on Saturday/Sunday/non-business working

day/holidays, banks are permitted to pay interest on deposits at the originally
contracted rate for the intervening period between the due date and date of
payment so that no interest loss is suffered by the depositors.
6. Whether banks can accept interest free deposits?
Ans: Banks cannot accept interest free deposits other than in current account.
7. Mortgage is defined under. Ans: Transfer of Property Act.
8. Short enquiry screen for loan : Ans: 10400
9. Which banks have been named by RBI as systematically important banks?
Ans: SBI and ICICI Bank
10. Systematically important banks will have to maintain more ____ to cover risks
Ans: Capital
11. Cash withdrawal limit at POS terminals in Tier III and VI centres has been
increased to Rs.____ per day. Ans: Rs.2000
12. What is referred to as Blockchain?
Ans: Blockchain is the underlying technology or platform that supports and

powers digital, crypto currencies such as Bitcoin.
13. What are the two items that were included in lending under priority sector by
RBI in April this year? Ans: Renewal Energy and Social infrastructure
14. What is the period within which banks have to publish their accounts and
balance sheet as per Sec.29 of Banking Regulation Act?
Ans: Within 6 months from the end of the period to which the account and
balance sheet relate.
15. A cheque was deposited by Mr. X with his banker for collection. The cheque
was presented in clearing after keeping the cheque pending for 10 days. In the
mean-time the drawer of the cheque is dead. The cheque was returned by the
paying banker. What is the legal position of the collecting banker?
Ans: The colleting banker will not get protection as there has been delay in
presenting the cheque for payment.
16. What is the role of a negotiating bank?
Ans: It purchases the documents submitted by the beneficiary and effects

payment provided the documents are drawn as per Letter of Credit terms.
17. Is there any responsibility on the part of the letter of Credit issuing bank
scrutinize the documents received from the negotiating bank and if so within
what period?
Ans: The issuing bank has to verify the documents within a maximum of five
banking days on receipt of the documents from the negotiating bank.
18. What is the documentary bill?
Ans: It is a bill of exchange accompanied by document of title to goods.
19. What do you understand by ?Actionable Claim'?
Ans: It is a debt not backed by any security either movable or immovable.
20. What is hypothecation?
Ans: It is a charge on any movable assets without transferring either the assets
or the possession to the creditor.
21. Do banks grant any loan/overdraft to unregistered Societies/Clubs?
Ans: No, since such bodies do not have power to borrow.
22. What are the important aspects to be looked into while granting the
advances on the basis of securities offered by the borrower?(Ans:d)
a)The marketability of security offered.
b)Adequacy of margin on the advances
c)Liquidity relating to the securities.
d)All the above.
23. While serving a notice on the borrower for repayment of a loan, what is the
period allowed by the bank for discharging his liability as per SARFAESI ACT?
Ans: 60 days
24. The Central Government is authorized to set up a Central Registry for the
purpose of registration of which of the following transactions?(Ans:c)
a)Securitisation and reconstruction of financial assets
b)Creation of security interest under the SARFAESI ACT.
c)Both a and b
25. Can the Banking Ombudsman act as an Arbitrator?
Ans: Yes when both the disputing parties come together and amicably settle the
dispute and on reference, the Ombudsman can act as an arbitrator.
26. What is the period allowed by the DRT to the defendant for responding to the
summons issued?
a)Ans: 30 days
27. A demand loan was sanctioned by the bank. The limitation period starts
from the date of :
Ans: Execution of loan documents
28. Insurance business can be undertaken by banks as: (Ans:e)
a) Joint Venture b) Strategic Investment c) Corporate Agent d) Referral

Business e) All of these
29. Credit risk arises when: (Ans: d)
a) Interest is not paid when due b) Instalments are not paid on due dates
c) In case of demand loan, when not paid on demand d) All the above
30. Operational risk is the risk of loss arising due to failed: (Ans:e)
a) Internal processes b) People c) Systems d) External events e) All the above
31. "Three pillar approach" is a term used in: (Ans: b)
a) Basle I accord b) Basle II frame work
c) Banks' Balance Sheets to indicate three best efficiency Ratios
d) Capital Management to indicate three best characteristics of capital as

Liquidity, High reurn and low cost.
32. Call money refers to placement of funds repayable: (Ans:d)
a)On demand
b)In a week's time from the date of demand
c)After two working days from the date of demand
d)The next working day
e)None of the above.
33. What are Nostro & Vostro Accounts ?
Ans: A nostro account is maintained by an Indian Bank in the foreign countries

for a facility of easy clearing of their transactions. For instance, if the bank pays a
demand drawn on it by its correspondent bank, there is no delay because the
foreign corresponded bank would already have credited the nostro account of the
paying bank while issuing the demand draft. A vostro account is maintained by a
foreign bank in India with their corresponding bank.
34. What is a Bank rate
Ans:The interest rate charged by a central bank to commercial banks for very
short term loans. Present Bank rate is 7.75%.
35. What is a Repo?
Ans: Repo is "Repurchase Agreement. An agreement to sell a security for a

specified price and to buy it back later at another specified price. A repo is
essentially a secured loan.
36. What is Repo Rate?
Ans: Whenever the banks have any shortage of funds they can borrow it from
RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction
in the repo rate will help banks to get money at a cheaper rate. When the repo
rate increases borrowing from RBI becomes more expensive. It was 6.75% in
37. What is CRR Rate in India?
Ans: Cash reserve Ratio (CRR) is the amount of funds that the banks have to
keep with RBI. If RBI decides to increase the percent of this, the available amount
with the banks comes down. RBI is using this method (increase of CRR rate), to
drain out the excessive money from the banks. It is 4% at present
38. What is a Reverse Repo Rate?
Ans: Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows
money from banks. Banks are always happy to lend money to RBI since their
money are in safe hands with a good interest. An increase in Reverse repo rate
can cause the banks to transfer more funds to RBI due to this attractive
interest rates. It can cause the money to be drawn out of the banking system.
Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and
Reverse Repo rate our banks adjust their lending or investment rates for
common man. Present Reverse Repo Rate is 5.75%.
39. What is SLR Rate?
Ans: SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to
maintain in the form of cash, or gold or govt. approved securities (Bonds) before
providing credit to its customers. SLR rate is determined and maintained by the
RBI (Reserve Bank of India) in order to control the expansion of bank credit. It is
presently 21.5%.
40. How is SLR determined?
Ans: SLR is determined as the percentage of total demand and percentage of

time liabilities. Time Liabilities are the liabilities a commercial bank liable to pay
to the customers on their anytime demand. .
41. What is the Need of SLR?
Ans: With the SLR (Statutory Liquidity Ratio), the RBI can ensure the solvency a
commercial bank. It is also helpful to control the expansion of Bank Credits. By
changing the SLR rates, RBI can increase or decrease bank credit expansion. Also
through SLR, RBI compels the commercial banks to invest in government
securities like government bonds..
42. What is the main use of SLR?
Ans: SLR is used to control inflation and propel growth. Through SLR rate tuning
the money supply in the system can be controlled efficiently.
43. What is a Bill of Lading?
Ans: This term is normally used in shipping industry. The receipt given by a
transportation company to an exporter when the former accepts goods for
transport. It includes the contract specifying what transport service will be
provided and the limits of liability.
44. What is Soft Currency?
Ans: Soft currency is opposite of hard currency and it indicates a type of currency
whose value may depreciate rapidly or that is difficult to convert into other
currencies. Soft currency can be in the form of paper, electronic or debt-based
"IOUs" which have in the past been used in place of hard currency. This currency
has limited convertibility into gold and other currencies.
45. An importer has to submit as evidence of import
Ans: the exchange control copy of the Bill of Entry for home consumption; the
exchange control copy of the Bill of Entry for warehousing, in the case of 100%
Export Oriented Units (EOUs); or Customs Assessment Certificate or Postal
Appraisal Form as declared by the importer to the Customs Authorities.
46. What is Cheque Truncation?
Ans: Truncation is the process of stopping the flow of the physical cheque issued
by a drawer at some point by the presenting bank en-route to the paying bank
branch. In its place an electronic image of the cheque is transmitted to the
paying branch through the clearing house, along with relevant information like
data on the MICR band, date of presentation, presenting bank, etc. Cheque
truncation thus obviates the need to move the physical instruments across bank
branches, other than in exceptional circumstances for clearing purposes. This
effectively eliminates the associated cost of movement of the physical cheques,
reduces the time required for their collection and brings elegance to the entire
activity of cheque processing.
47. What type of instruments can be presented for clearing through CTS?
Ans: It is preferable to present instruments complying with CTS-2010 standards

for clearing through CTS for faster realisation. Instruments not complying with
CTS-2010 standards will continue be accepted but will be cleared at less frequent
intervals i.e. once a week(every Monday).
48. What is the prescription relating to alterations / corrections on cheque forms?
Ans: The prescription on prohibiting alterations / corrections on cheques has

been introduced to curtail cheque related frauds. No changes / corrections can
be carried out on the cheques (other than for date validation purposes, if
required). For any change in the payee's name, courtesy amount (amount in
figures) or legal amount (amount in words), fresh cheque leaves should be used
by customers. This would help banks in identifying and controlling fraudulent
alterations. This prohibition is applicable to cheques cleared under the image
based Cheque Truncation System (CTS) only. It is not applicable to cheques
cleared under physical exchange of instruments.
49. What is Commercial Paper (CP)?
Ans: Commercial Paper (CP) is an unsecured money market instrument issued in

the form of a promissory note.
50. Who can issue CP? Ans: Corporates, primary dealers (PDs) and the All-India
Financial Institutions (FIs) are eligible to issue CP.
1.The Total Priority Sector target of 40 percent for foreign banks with less than
20 branches has to be achieved in a phased manner by the year: Ans: 2019-20
2. ANBC: ADJUSTED NET BANK CREDIT
3. How is the computation of interest on savings bank deposits done by banks?
Ans: With effect from April 1, 2010 payment of interest on savings bank accounts
by scheduled commercial banks would be calculated on a daily product basis
4. Whether banks can prematurely repay term deposits on their own?
Ans: A term deposit is a contract between the bank and the customer for a
definite term and it cannot be paid prematurely at the bank's option. However, a
term deposit can be paid prematurely at the request of the customer subject to
the terms of the contract, including penalty, if any.
5. How and when are banks required to pay interest on the deposits maturing on
holiday/ non-business working day/ Sunday?
Ans: Whenever the due dates fall on Saturday/Sunday/non-business working

day/holidays, banks are permitted to pay interest on deposits at the originally
contracted rate for the intervening period between the due date and date of
payment so that no interest loss is suffered by the depositors.
6. Whether banks can accept interest free deposits?
Ans: Banks cannot accept interest free deposits other than in current account.
7. Mortgage is defined under. Ans: Transfer of Property Act.
8. Short enquiry screen for loan : Ans: 10400
9. Which banks have been named by RBI as systematically important banks?
Ans: SBI and ICICI Bank
10. Systematically important banks will have to maintain more ____ to cover risks
Ans: Capital
11. Cash withdrawal limit at POS terminals in Tier III and VI centres has been
increased to Rs.____ per day. Ans: Rs.2000
12. What is referred to as Blockchain?
Ans: Blockchain is the underlying technology or platform that supports and

powers digital, crypto currencies such as Bitcoin.
13. What are the two items that were included in lending under priority sector by
RBI in April this year? Ans: Renewal Energy and Social infrastructure
14. What is the period within which banks have to publish their accounts and
balance sheet as per Sec.29 of Banking Regulation Act?
Ans: Within 6 months from the end of the period to which the account and
balance sheet relate.
15. A cheque was deposited by Mr. X with his banker for collection. The cheque
was presented in clearing after keeping the cheque pending for 10 days. In the
mean-time the drawer of the cheque is dead. The cheque was returned by the
paying banker. What is the legal position of the collecting banker?
Ans: The colleting banker will not get protection as there has been delay in
presenting the cheque for payment.
16. What is the role of a negotiating bank?
Ans: It purchases the documents submitted by the beneficiary and effects

payment provided the documents are drawn as per Letter of Credit terms.
17. Is there any responsibility on the part of the letter of Credit issuing bank
scrutinize the documents received from the negotiating bank and if so within
what period?
Ans: The issuing bank has to verify the documents within a maximum of five
banking days on receipt of the documents from the negotiating bank.
18. What is the documentary bill?
Ans: It is a bill of exchange accompanied by document of title to goods.
19. What do you understand by ?Actionable Claim'?
Ans: It is a debt not backed by any security either movable or immovable.
20. What is hypothecation?
Ans: It is a charge on any movable assets without transferring either the assets
or the possession to the creditor.
21. Do banks grant any loan/overdraft to unregistered Societies/Clubs?
Ans: No, since such bodies do not have power to borrow.
22. What are the important aspects to be looked into while granting the
advances on the basis of securities offered by the borrower?(Ans:d)
a)The marketability of security offered.
b)Adequacy of margin on the advances
c)Liquidity relating to the securities.
d)All the above.
23. While serving a notice on the borrower for repayment of a loan, what is the
period allowed by the bank for discharging his liability as per SARFAESI ACT?
Ans: 60 days
24. The Central Government is authorized to set up a Central Registry for the
purpose of registration of which of the following transactions?(Ans:c)
a)Securitisation and reconstruction of financial assets
b)Creation of security interest under the SARFAESI ACT.
c)Both a and b
25. Can the Banking Ombudsman act as an Arbitrator?
Ans: Yes when both the disputing parties come together and amicably settle the
dispute and on reference, the Ombudsman can act as an arbitrator.
26. What is the period allowed by the DRT to the defendant for responding to the
summons issued?
a)Ans: 30 days
27. A demand loan was sanctioned by the bank. The limitation period starts
from the date of :
Ans: Execution of loan documents
28. Insurance business can be undertaken by banks as: (Ans:e)
a) Joint Venture b) Strategic Investment c) Corporate Agent d) Referral

Business e) All of these
29. Credit risk arises when: (Ans: d)
a) Interest is not paid when due b) Instalments are not paid on due dates
c) In case of demand loan, when not paid on demand d) All the above
30. Operational risk is the risk of loss arising due to failed: (Ans:e)
a) Internal processes b) People c) Systems d) External events e) All the above
31. "Three pillar approach" is a term used in: (Ans: b)
a) Basle I accord b) Basle II frame work
c) Banks' Balance Sheets to indicate three best efficiency Ratios
d) Capital Management to indicate three best characteristics of capital as

Liquidity, High reurn and low cost.
32. Call money refers to placement of funds repayable: (Ans:d)
a)On demand
b)In a week's time from the date of demand
c)After two working days from the date of demand
d)The next working day
33. What are Nostro & Vostro Accounts ?
Ans: A nostro account is maintained by an Indian Bank in the foreign countries

for a facility of easy clearing of their transactions. For instance, if the bank pays a
demand drawn on it by its correspondent bank, there is no delay because the
foreign corresponded bank would already have credited the nostro account of the
paying bank while issuing the demand draft. A vostro account is maintained by a
foreign bank in India with their corresponding bank.
34. What is a Bank rate
Ans:The interest rate charged by a central bank to commercial banks for very
short term loans. Present Bank rate is 7.75%.
35. What is a Repo?
Ans: Repo is "Repurchase Agreement. An agreement to sell a security for a

specified price and to buy it back later at another specified price. A repo is
essentially a secured loan.
36. What is Repo Rate?
Ans: Whenever the banks have any shortage of funds they can borrow it from
RBI. Repo rate is the rate at which our banks borrow rupees from RBI. A reduction
in the repo rate will help banks to get money at a cheaper rate. When the repo
rate increases borrowing from RBI becomes more expensive. It was 6.75% in
37. What is CRR Rate in India?
Ans: Cash reserve Ratio (CRR) is the amount of funds that the banks have to
keep with RBI. If RBI decides to increase the percent of this, the available amount
with the banks comes down. RBI is using this method (increase of CRR rate), to
drain out the excessive money from the banks. It is 4% at present
38. What is a Reverse Repo Rate?
Ans: Reverse Repo rate is the rate at which Reserve Bank of India (RBI) borrows
money from banks. Banks are always happy to lend money to RBI since their
money are in safe hands with a good interest. An increase in Reverse repo rate
can cause the banks to transfer more funds to RBI due to this attractive
interest rates. It can cause the money to be drawn out of the banking system.
Due to this fine tuning of RBI using its tools of CRR, Bank Rate, Repo Rate and
Reverse Repo rate our banks adjust their lending or investment rates for
common man. Present Reverse Repo Rate is 5.75%.
39. What is SLR Rate?
Ans: SLR (Statutory Liquidity Ratio) is the amount a commercial bank needs to
maintain in the form of cash, or gold or govt. approved securities (Bonds) before
providing credit to its customers. SLR rate is determined and maintained by the
RBI (Reserve Bank of India) in order to control the expansion of bank credit. It is
presently 21.5%.
40. How is SLR determined?
Ans: SLR is determined as the percentage of total demand and percentage of

time liabilities. Time Liabilities are the liabilities a commercial bank liable to pay
to the customers on their anytime demand. .
41. What is the Need of SLR?
Ans: With the SLR (Statutory Liquidity Ratio), the RBI can ensure the solvency a
commercial bank. It is also helpful to control the expansion of Bank Credits. By
changing the SLR rates, RBI can increase or decrease bank credit expansion. Also
through SLR, RBI compels the commercial banks to invest in government
securities like government bonds..
42. What is the main use of SLR?
Ans: SLR is used to control inflation and propel growth. Through SLR rate tuning
the money supply in the system can be controlled efficiently.
43. What is a Bill of Lading?
Ans: This term is normally used in shipping industry. The receipt given by a
transportation company to an exporter when the former accepts goods for
transport. It includes the contract specifying what transport service will be
provided and the limits of liability.
44. What is Soft Currency?
Ans: Soft currency is opposite of hard currency and it indicates a type of currency
whose value may depreciate rapidly or that is difficult to convert into other
currencies. Soft currency can be in the form of paper, electronic or debt-based
"IOUs" which have in the past been used in place of hard currency. This currency
has limited convertibility into gold and other currencies.
45. An importer has to submit as evidence of import
Ans: the exchange control copy of the Bill of Entry for home consumption; the
exchange control copy of the Bill of Entry for warehousing, in the case of 100%
Export Oriented Units (EOUs); or Customs Assessment Certificate or Postal

Appraisal Form as declared by the importer to the Customs Authorities.
46. What is Cheque Truncation?
Ans: Truncation is the process of stopping the flow of the physical cheque issued
by a drawer at some point by the presenting bank en-route to the paying bank
branch. In its place an electronic image of the cheque is transmitted to the
paying branch through the clearing house, along with relevant information like
data on the MICR band, date of presentation, presenting bank, etc. Cheque
truncation thus obviates the need to move the physical instruments across bank
branches, other than in exceptional circumstances for clearing purposes. This
effectively eliminates the associated cost of movement of the physical cheques,
reduces the time required for their collection and brings elegance to the entire
activity of cheque processing.
47. What type of instruments can be presented for clearing through CTS?
Ans: It is preferable to present instruments complying with CTS-2010 standards

for clearing through CTS for faster realisation. Instruments not complying with
CTS-2010 standards will continue be accepted but will be cleared at less frequent
intervals i.e. once a week(every Monday).
48. What is the prescription relating to alterations / corrections on cheque forms?
Ans: The prescription on prohibiting alterations / corrections on cheques has

been introduced to curtail cheque related frauds. No changes / corrections can
be carried out on the cheques (other than for date validation purposes, if
required). For any change in the payee's name, courtesy amount (amount in
figures) or legal amount (amount in words), fresh cheque leaves should be used
by customers. This would help banks in identifying and controlling fraudulent
alterations. This prohibition is applicable to cheques cleared under the image
based Cheque Truncation System (CTS) only. It is not applicable to cheques
cleared under physical exchange of instruments.
49. What is Commercial Paper (CP)?
Ans: Commercial Paper (CP) is an unsecured money market instrument issued in

the form of a promissory note.
50. Who can issue CP? Ans: Corporates, primary dealers (PDs) and the All-India
Financial Institutions (FIs) are eligible to issue CP.
?????????????
IBEU (AP) /AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT.
Wishing you "All the Best".
??????????????????
??????????
OBJECTIVE QUESTIONS FOR CLERICAL TO OFFICER PROMOTION TEST
????????????????????
IBEU(AP) TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT
??????????
WISHING YOU "ALL THE BEST"
????????????????????
1.As per extant guidelines, advance against book debts should not exceed .......
% of working capital limits. (Ans:b)
a) 10%
b) 50%
c) 25%
d) 100%
e) no such ceiling
2. Government pays agency commission to the banks @ ... for Pension payments
(Ans:c)
a) Rs.50 per credit
b) Rs.12 per credit
c) Rs.65 per credit
d) Rs.60 per credit
e) None
3. PCFC advance generally allowed for a maximum period of (Ans:c)
a) 360 days b) 270 days c) 180 days d) 90 days e) no such limit
4. TDS deducted by bank,is to be remitted to Income Tax authorities within..

(Ans:e)
a) 15 days from the date of deduction
b) 7 days from the date of deduction
c) 15 days in the succeeding month
d) 10 days in the succeeding month
e) 7 days in the succeeding month
5. What is the rate charged by banks for the discounting of approved bill of
exchange? (Ans:b)
a) Repo Rate
b) Bank Rate
c) Reverse Repo Rate
d) Base Rate
e) None of the above
6. Companies look for Commercial Paper since they need (Ans:d)
a) Long Term Low Cost funds
b) Short Term High Cost funds
c) Long Term High Cost funds
d) Short Term Low Cost funds
e) None
7. X aged above 65 years placed a term deposit and requests TDS exemption as
his total income including interest income falls below the taxable income, which
form he need to submit to the (Ans:b)
a) Form G
b) Form H
c) a or b
d) No form is required
e) None
8. Borrowers availing crop loans up to 3 lakh in the current year are eligible for
interest subvention at ........ besides prompt payment incentive of ..........
(Ans:d)
a) 1% & 3%
b) 2% & 1%
c) 3% & 1%
d) 2% & 3%
e) None
9. CIBIL TU score should be minimum of ........ to entertain credit proposals by the

Banks / Financial Institutions. (Ans:d)
a) 300
b) 400
c) 500
d) 550
10. To consider housing loan, the age of building shall not be more than (Ans:d)
a) 15 years
b) 20 years
c) 15 years in Rural/Semi Urban & 20 years in Urban/Metro areas
d) Residual life of the building should be at least 10 years over and above
repayment tenor
e) Residual life of the building should be at least 15 ears over and above
repayment tenor
11. Bank is required to submit XOS statement to RBI, in respect of (Ans:c)
a) Foreign exchange transactions
b) Import transact ions
c) Overdue export bills
d) Overdue import bills e) FCNR accounts
12. Zero Coupon Bonds refers to (Ans:d)
a) Bond issued at face value
b) Bond issued with face value & interest
c) Bond issued at discount from its face value with interest
d) Bond issued at discount from its face value without interest
e) None
13.ATMs that are owned and managed by non-banking entities are called as.....
(Ans:e)
a) Onsite ATM
b) Offsite ATM
c) Third Party ATM
d) Red label ATM
e) White label ATM
14. CDR-1 system is applicable only to accounts which are under (Ans:d)
a) Standard
b) Sub-standard
c) Doubtful
d) a & b
e) All
15.As per recent guidelines, 40% of the total advances to micro and small
enterprises sector should go to micro (manufacturing) enterprises having
investment in plant and machinery up to .....Lakh and micro (service) enterprises
having investment in equipment up to .....Lakh. (Ans:a)
a) Rs.10 & Rs.4
b) Rs.5 & Rs.2
c) Rs.10 & Rs.5
d) Rs.2 & Rs.5
e) Rs.15 & Rs.10
16. For transfer of funds through NEFT (National Electronic Fund Transfer) and
minimum and maximum amount that can be transferred are(Ans:d)
a) Rs.1,000 and maximum Rs.5 lacs
b) Rs.1,000 and maximum no limit
c) Rs.5,000 and maximum Rs.1 lacs
d) No minimum & maximum amount
e) None of the above.
17. One Rupee currency note bears the signature of (Ans:e)
a) President of India
b) Prime Minister of India
c) Governor RBI
d) Finance Minister of India
e) Finance Secretary of India
18. In case of restructured loans, the payment of installments should commence

within ...... months from the date of restructure of loan. (Ans:e)
a) one month
b) 3 months
c) 6 months
d) 9 months
e) 12 months
19. It is mandatory for banks to obtain Joint Lending Agreement where the
aggregate credit limits availed by the borrower from multiple banks exceeds....
(Ans:b)
a) Rs.100 crore
b) Rs.150 crore
c) Rs.300 crore
d) Rs.500 crore
e) None
20. USB means (Ans:b)
a) Urban Savings Bank account
b) Ultra Small Branch
c) Uniform Savings Bank account
d) Unique Small Bank
e) None
21. Whether borrower has any option to go for.........during the currency of the
loan? (Ans:d)
a) Fixed Interest Rate to Floating Interest Rate
b) Floating Interest Rate to Fixed Interest Rate
c) a & b
d) Continue with sanctioned terms & conditions only
e) None
22. Cash kept in the currency chest is owned by (Ans:c)
a) Currency Chest Branch Bank
b) Central Government
c) Reserve Bank of India
d) State Bank of India
23. Bank can't proceed against the borrower under SARFAESI Act where (Ans:e)
a) Security is agri land
b) Liability is less than Rs.1 lac
c) Liability is less than 20% of the principal
d) Pledge of movables
e) All of the above
24. State which one of the following statement not true with regard to disclosure
norms to be made at the footnote of Balance sheet as per RBI
guidelines.(Ans:b)
a) Movement of NPAs
b) Large exposure - Deposit & advances
c) Capital structure & Capital adequacy
d) Industry wise exposure
e) Market Risk in Trading Book
25. Savings Bank account can be opened by(Ans:d)
a) Individuals
b) Trusts
c) Business entities
d) a & b
e) All
26. A cheque is received by the branch for payment issued by one of the
customers. Meanwhile a request is received by a public prosecutor informing that
the person issued the cheque is imprisoned for criminal activity and directs the
branch not to make payment of the said cheque. What is expected by the
branch? (Ans:d)
a) Branch should not make the payment
b) Branch should ask for court order regarding imprisonment of the customer
c) Branch should insist written request from the public prosecutor
d) Branch can make the payment.
27. With regard to lockers, which of the following guideline is not issued by the
RBI?
(Ans:a)
a) Branches are to link the allotment of lockers to placement of fixed deposits
b) To ensure prompt payment of locker rent, branch are to obtain a Fixed Deposit
which would cover 3 years rent and charges for breaking open the locker
c) Branch Manager can allot the 1/3rd of vacant lockers
d) Wait list of lockers need not be maintained.
28. Within the bank's aggregate capital market exposure of .........of its net worth
the bank's direct investment in shares/convertible bonds/debentures, units of
equity oriented mutual funds/Venture Capital funds should not exceed ........of its
net worth.(Ans:c)
a) 40% & 15%
b) 30% & 15%
c) 40% & 20%
d) 80% & 50%
e) No ceiling
29. As per the compensation policy of the bank with regard to collection of
foreign cheques, bank shall pay compensation @ ........ to the customer if the
delay is beyond 45 days.(Ans:d)
a) SB Interest
b) Term Deposit Rate
c) Base Rate
d) SB Interest + 0.75%
e) None
30. Official Language Implementation Committee meetings are to be held once

in.... (Ans:b)
a) Two months
b) Three months
c) Six months
d) Twelve months
e) None
31. In terms of direction of RBI & IBA on simplified procedure for settlement of
claims preferred by the legal heirs of the deceased constituents, bank has to
settle the death claims involving amount up to Rs......... (Ans:c)
a) Rs.10000
b) Rs.50000
c) Rs.100000
d) Rs.25000
e) None
32. The minimum capital required to start a new private sector bank
is...(Ans:e)
a) Rs.100 crore
b) Rs.200 crore
c) Rs.300 crore
d) Rs.400 crore
e) Rs.500 crore
33. Which of the following Interest rates are still regulated by RBI? (Ans:c)
a) SB Deposits
b) Commercial Loans
c) DRI Loans
d) b & c
e) all
34. Which of the following scheme is launched to provide pension to the

members of unorganized sectors in India? (Ans:b)
a) Swabhiman
b) Swavalamban
c) Jeevan Dhara
d) Jeevan Kalyan
e) Asha
35. To be eligible for classification under priority sector, the ceiling prescribed for
dealers in irrigation equipment is. (Ans:e)
a) Rs.10 lakhs
b) Rs.20 lakhs
c) Rs.30 lakhs
d) Rs.40 lakhs
e) Rs.100 lakhs 123
36. Right of Set-off refers to (Ans:c)
a) Marking of lien in deposit account of the borrower
b) Transfer of term deposit balance, which is due for maturity in the next year to
borrower account for adjustment of overdues
c) Transfer of Savings Bank balances to borrower account for adjustment of

overdues in loan account of the depositor
d) b & c
e) None
37. A term deposit of Rs.500000/- in the name of individual with one year tenor is
cancelled prematurely. The penalty for premature closure is....(Ans:e)
a) 0.50%
b) 1.00%
c) 1.50%
d) 2.00%
e) No charges
38. For the benefit of Senior Citizens, recently GO I introduced "Jeevan Pramaan"
which relates (Ans:d)
a) Life Insurance
b) Health Insurance
c) Housing facility
d) Life Certificate
e) None
39. Current Account is treated Inoperative/Dormant where there are no

transactions in the account for the last(Ans:d)
a) 6 months
b) 12 months
c) 18 months
d) 24 months
e) 36 months
40. "No Frills account" is also known as(Ans:c)
a) Savings Bank Account
b) Simple Recurring Deposit Account
c) Basic Savings Bank A/c
d) None
41. PIN stands for(Ans:c)
a) Personal Index Number
b) Permanent Index Number
c) Personal Identification Number
d) Permanent Index Number
e) None
42. EEFC Account can be opened by(Ans:d)
a) Non Resident Indian (NRI)
b) NRI who returned to India permanently
c) Any Resident with local source of income
d) Residents who have forex earnings
e) None
43. Failure of internal systems, processes and people lead to (Ans:d)
a) Credit Risk
b) Market Risk
c) Liquidity Risk
d) Operational Risk
e) Technology Risk
44. As per IBA Model Education Loan Scheme, the minimum & maximum age
criteria for the borrower (student) are...... (Ans:e)
a) 10 & 35 years
b) 18 & 35 years
c) 18 & 45 years
d) All majors
e) None
45. The Banking Laws (Amendment) 2012 has facilitated the Public Sector Banks
in increase of voting rights from.......to........(Ans:d)
a) 10% to 26%
b) 5% to 26%
c) 1% to 5%
d) 1% to 10%
e) None
46. Maximum Project cost under USEP of SJSRY for individual borrower (Ans:b)
a) 1 lakh
b) 2 lakh
c) 5 lakh
d) 10 lakh
e) 50000
47. A bank can prefer appeal on the award passed by Banking Ombudsman
within 30 days from the date on which the bank receives (Ans:b)
a) Passing Award
b) letter of acceptance of Award by complainant
c) the copy of the Award
d) None of the above
48. CDR mechanism, which of the following is not correct.(Ans:e)
a) Multiple Bank Accounts
b) Rs.10 crores & above
c) Fund & Non-fund based
d) Preserving viable corporates e) Account should be NPA
49. Branches can negotiate bills drawn under LC for non-constituents, if (Ans:a)
a) LC is restricted to our bank only, subject to the condition that the Proceeds will
be
remitted to the regular banker of the beneficiary
b) LC is not restricted and proceeds
will be remitted to the beneficiary
c) LC bearing the clause without recourse
d) None
50. X depositor approached the branch with term deposit receipt of Rs.2 lakhs
which was due in the year 2008 and not interested for renewal of the matured
deposit and requesting for payment of interest for overdue period. How do you
act? (Ans:d)
a) No interest will be paid since the deposit is not renewed
b) Term Deposit applicable interest at the time of maturity will be paid for the
overdue period
c) Interest rate at the time of maturity or at the time of renewal whichever is

lower will be paid for overdue period
d) SB interest will be paid for the overdue period

????????????????????
????????????????????

????????????????????
WISHING YOYU "ALL THE BEST"
????????????????????
??????????
????????????????????
??????????
????????????????????
1.As per extant guidelines, advance against book debts should not exceed .......
% of working capital limits. (Ans:b)
a) 10%
b) 50%
c) 25%
d) 100%
e) no such ceiling
2. Government pays agency commission to the banks @ ... for Pension payments
(Ans:c)
a) Rs.50 per credit
b) Rs.12 per credit
c) Rs.65 per credit
d) Rs.60 per credit
e) None
3. PCFC advance generally allowed for a maximum period of (Ans:c)
a) 360 days b) 270 days c) 180 days d) 90 days e) no such limit
4. TDS deducted by bank,is to be remitted to Income Tax authorities within..

(Ans:e)
a) 15 days from the date of deduction
b) 7 days from the date of deduction
c) 15 days in the succeeding month
d) 10 days in the succeeding month
e) 7 days in the succeeding month
5. What is the rate charged by banks for the discounting of approved bill of
exchange? (Ans:b)
a) Repo Rate
b) Bank Rate
d) Base Rate
6. Companies look for Commercial Paper since they need (Ans:d)
a) Long Term Low Cost funds
b) Short Term High Cost funds
c) Long Term High Cost funds
d) Short Term Low Cost funds
e) None
7. X aged above 65 years placed a term deposit and requests TDS exemption as
his total income including interest income falls below the taxable income, which
form he need to submit to the (Ans:b)
a) Form G
b) Form H
c) a or b
d) No form is required
e) None
8. Borrowers availing crop loans up to 3 lakh in the current year are eligible for
interest subvention at ........ besides prompt payment incentive of ..........
(Ans:d)
a) 1% & 3%
b) 2% & 1%
c) 3% & 1%
d) 2% & 3%
e) None
9. CIBIL TU score should be minimum of ........ to entertain credit proposals by the

Banks / Financial Institutions. (Ans:d)
a) 300
b) 400
c) 500
d) 550
10. To consider housing loan, the age of building shall not be more than (Ans:d)
a) 15 years
b) 20 years
c) 15 years in Rural/Semi Urban & 20 years in Urban/Metro areas
d) Residual life of the building should be at least 10 years over and above
repayment tenor
e) Residual life of the building should be at least 15 ears over and above
repayment tenor
11. Bank is required to submit XOS statement to RBI, in respect of (Ans:c)
a) Foreign exchange transactions
b) Import transact ions
c) Overdue export bills
d) Overdue import bills e) FCNR accounts
12. Zero Coupon Bonds refers to (Ans:d)
a) Bond issued at face value
b) Bond issued with face value & interest
c) Bond issued at discount from its face value with interest
d) Bond issued at discount from its face value without interest
e) None
13.ATMs that are owned and managed by non-banking entities are called as.....
(Ans:e)
a) Onsite ATM
b) Offsite ATM
c) Third Party ATM
d) Red label ATM
e) White label ATM
14. CDR-1 system is applicable only to accounts which are under (Ans:d)
a) Standard
b) Sub-standard
c) Doubtful
d) a & b
e) All
15.As per recent guidelines, 40% of the total advances to micro and small
enterprises sector should go to micro (manufacturing) enterprises having
investment in plant and machinery up to .....Lakh and micro (service) enterprises
having investment in equipment up to .....Lakh. (Ans:a)
a) Rs.10 & Rs.4
b) Rs.5 & Rs.2
c) Rs.10 & Rs.5
d) Rs.2 & Rs.5
e) Rs.15 & Rs.10
16. For transfer of funds through NEFT (National Electronic Fund Transfer) and
minimum and maximum amount that can be transferred are(Ans:d)
a) Rs.1,000 and maximum Rs.5 lacs
b) Rs.1,000 and maximum no limit
c) Rs.5,000 and maximum Rs.1 lacs
d) No minimum & maximum amount
17. One Rupee currency note bears the signature of (Ans:e)
a) President of India
b) Prime Minister of India
c) Governor RBI
d) Finance Minister of India
e) Finance Secretary of India
18. In case of restructured loans, the payment of installments should commence

within ...... months from the date of restructure of loan. (Ans:e)
a) one month
b) 3 months
c) 6 months
d) 9 months
e) 12 months
19. It is mandatory for banks to obtain Joint Lending Agreement where the
aggregate credit limits availed by the borrower from multiple banks exceeds....
(Ans:b)
a) Rs.100 crore
b) Rs.150 crore
c) Rs.300 crore
d) Rs.500 crore
e) None
20. USB means (Ans:b)
a) Urban Savings Bank account
b) Ultra Small Branch
c) Uniform Savings Bank account
d) Unique Small Bank
e) None
21. Whether borrower has any option to go for.........during the currency of the
loan? (Ans:d)
a) Fixed Interest Rate to Floating Interest Rate
b) Floating Interest Rate to Fixed Interest Rate
c) a & b
d) Continue with sanctioned terms & conditions only
e) None
22. Cash kept in the currency chest is owned by (Ans:c)
a) Currency Chest Branch Bank
b) Central Government
c) Reserve Bank of India
d) State Bank of India
23. Bank can't proceed against the borrower under SARFAESI Act where (Ans:e)
a) Security is agri land
b) Liability is less than Rs.1 lac
c) Liability is less than 20% of the principal
d) Pledge of movables
e) All of the above
24. State which one of the following statement not true with regard to disclosure
norms to be made at the footnote of Balance sheet as per RBI
guidelines.(Ans:b)
a) Movement of NPAs
b) Large exposure - Deposit & advances
c) Capital structure & Capital adequacy
d) Industry wise exposure
e) Market Risk in Trading Book
25. Savings Bank account can be opened by(Ans:d)
a) Individuals
b) Trusts
c) Business entities
d) a & b
e) All
26. A cheque is received by the branch for payment issued by one of the
customers. Meanwhile a request is received by a public prosecutor informing that
the person issued the cheque is imprisoned for criminal activity and directs the
branch not to make payment of the said cheque. What is expected by the
branch? (Ans:d)
a) Branch should not make the payment
b) Branch should ask for court order regarding imprisonment of the customer
c) Branch should insist written request from the public prosecutor
d) Branch can make the payment.
27. With regard to lockers, which of the following guideline is not issued by the
RBI?
(Ans:a)
a) Branches are to link the allotment of lockers to placement of fixed deposits
b) To ensure prompt payment of locker rent, branch are to obtain a Fixed Deposit
which would cover 3 years rent and charges for breaking open the locker
c) Branch Manager can allot the 1/3rd of vacant lockers
d) Wait list of lockers need not be maintained.
28. Within the bank's aggregate capital market exposure of .........of its net worth
the bank's direct investment in shares/convertible bonds/debentures, units of
equity oriented mutual funds/Venture Capital funds should not exceed ........of its
net worth.(Ans:c)
a) 40% & 15%
b) 30% & 15%
c) 40% & 20%
d) 80% & 50%
e) No ceiling
29. As per the compensation policy of the bank with regard to collection of
foreign cheques, bank shall pay compensation @ ........ to the customer if the
delay is beyond 45 days.(Ans:d)
a) SB Interest
b) Term Deposit Rate
c) Base Rate
d) SB Interest + 0.75%
e) None
30. Official Language Implementation Committee meetings are to be held once

in.... (Ans:b)
a) Two months
b) Three months
c) Six months
d) Twelve months
e) None
31. In terms of direction of RBI & IBA on simplified procedure for settlement of
claims preferred by the legal heirs of the deceased constituents, bank has to
settle the death claims involving amount up to Rs......... (Ans:c)
a) Rs.10000
b) Rs.50000
c) Rs.100000
d) Rs.25000
e) None
32. The minimum capital required to start a new private sector bank
is...(Ans:e)
a) Rs.100 crore
b) Rs.200 crore
c) Rs.300 crore
d) Rs.400 crore
e) Rs.500 crore
33. Which of the following Interest rates are still regulated by RBI? (Ans:c)
a) SB Deposits
b) Commercial Loans
c) DRI Loans
d) b & c
e) all
34. Which of the following scheme is launched to provide pension to the

members of unorganized sectors in India? (Ans:b)
a) Swabhiman
b) Swavalamban
c) Jeevan Dhara
d) Jeevan Kalyan
e) Asha
35. To be eligible for classification under priority sector, the ceiling prescribed for
dealers in irrigation equipment is. (Ans:e)
a) Rs.10 lakhs
b) Rs.20 lakhs
c) Rs.30 lakhs
d) Rs.40 lakhs
e) Rs.100 lakhs 123
36. Right of Set-off refers to (Ans:c)
a) Marking of lien in deposit account of the borrower
b) Transfer of term deposit balance, which is due for maturity in the next year to
borrower account for adjustment of overdues
c) Transfer of Savings Bank balances to borrower account for adjustment of

overdues in loan account of the depositor
d) b & c
e) None
37. A term deposit of Rs.500000/- in the name of individual with one year tenor is
cancelled prematurely. The penalty for premature closure is....(Ans:e)
a) 0.50%
b) 1.00%
c) 1.50%
d) 2.00%
e) No charges
38. For the benefit of Senior Citizens, recently GO I introduced "Jeevan Pramaan"
which relates (Ans:d)
a) Life Insurance
b) Health Insurance
c) Housing facility
d) Life Certificate
e) None
39. Current Account is treated Inoperative/Dormant where there are no

transactions in the account for the last(Ans:d)
a) 6 months
b) 12 months
c) 18 months
d) 24 months
e) 36 months
40. "No Frills account" is also known as(Ans:c)
a) Savings Bank Account
b) Simple Recurring Deposit Account
c) Basic Savings Bank A/c
d) None
41. PIN stands for(Ans:c)
a) Personal Index Number
b) Permanent Index Number
c) Personal Identification Number
d) Permanent Index Number
e) None
42. EEFC Account can be opened by(Ans:d)
a) Non Resident Indian (NRI)
b) NRI who returned to India permanently
c) Any Resident with local source of income
d) Residents who have forex earnings
e) None
43. Failure of internal systems, processes and people lead to (Ans:d)
a) Credit Risk
b) Market Risk
c) Liquidity Risk
d) Operational Risk
e) Technology Risk
44. As per IBA Model Education Loan Scheme, the minimum & maximum age
criteria for the borrower (student) are...... (Ans:e)
a) 10 & 35 years
b) 18 & 35 years
c) 18 & 45 years
d) All majors
e) None
45. The Banking Laws (Amendment) 2012 has facilitated the Public Sector Banks
in increase of voting rights from.......to........(Ans:d)
a) 10% to 26%
b) 5% to 26%
c) 1% to 5%
d) 1% to 10%
e) None
46. Maximum Project cost under USEP of SJSRY for individual borrower (Ans:b)
a) 1 lakh
b) 2 lakh
c) 5 lakh
d) 10 lakh
e) 50000
within 30 days from the date on which the bank receives (Ans:b)
a) Passing Award
b) letter of acceptance of Award by complainant
c) the copy of the Award
48. CDR mechanism, which of the following is not correct.(Ans:e)
a) Multiple Bank Accounts
b) Rs.10 crores & above
c) Fund & Non-fund based
d) Preserving viable corporates e) Account should be NPA
49. Branches can negotiate bills drawn under LC for non-constituents, if (Ans:a)
a) LC is restricted to our bank only, subject to the condition that the Proceeds will
be
remitted to the regular banker of the beneficiary
b) LC is not restricted and proceeds
will be remitted to the beneficiary
c) LC bearing the clause without recourse
d) None
50. X depositor approached the branch with term deposit receipt of Rs.2 lakhs
which was due in the year 2008 and not interested for renewal of the matured
deposit and requesting for payment of interest for overdue period. How do you
act? (Ans:d)
a) No interest will be paid since the deposit is not renewed
b) Term Deposit applicable interest at the time of maturity will be paid for the
overdue period
c) Interest rate at the time of maturity or at the time of renewal whichever is

lower will be paid for overdue period
d) SB interest will be paid for the overdue period

????????????????????
????????????????????
????????????????????
WISHING YOYU "ALL THE BEST"
????????????????????
THE INDIAN BANK EMPLOYEES' UNION (A.P.)
REGD.NO.1027
BANJARA SADAN, ST.NO.15, HIMAYATNAGAR, HYDERABAD - 500 029.
??????????????????
IBEU (AP) OBJECTIVE QUESTIONS FOR CLERICAL TO OFFICER PROMOTION TEST
??????????????????
1. Whether Bank can seek Collateral security for Education Loans upto Rs.4.00
lakhs?
Ans: Banks must not seek collateral for educational loans upto Rs.4.00 lakhs as
per the extent regulatory instructions.
2.Permissible Debits to NRO Accounts(Ans:c)
All local payment in rupees including payments for investments subject to

compliance with the relevant regulations made by the Reserve Bank.
a)Remittance outside India of current income in India of the account holder net
of applicable taxes.
b)Both (a) and (b)
3.Permissible Credits to NRO Accounts(Ans:c)
a) Proceeds of remittances received in any permitted currency from outside

Indiathrought normal banking channels or any permitted currency tendered by
the accountholder during his temporary visit to India or transfers from rupee
accounts of nonresident banks.
b) Legitimate dues in India of the account holder
c) Both (a) and (b)
4. In which Structured Loan Product, we can finance Rice traders?
Ans: Trade well Scheme.
5. In IB Star Agro Mill Scheme, the following eligible units were included recently?
Ans: Dhal Mills, Oil Mills and Flour Mills.
6.What is the minimum and maximum exposure per borrower under Trade well
Scheme?
Ans:Total Fund based (working Capital and Term Loan) and Non fund based
(Working capital) Minimum per borrower exposure - Rs.0.10 crores and maximum
per borrower exposure - no ceiling. Of which ceiling under Term loan Upto
Rs.5.00 crores.
7.Whether service area approach is applicable for Educational loans?
Ans: Service Area Approach is not applicable to Educational Loans.
8.For the accounts opened under Senior Citizen Deposit Savings Scheme,
exemption limits for deducting TDS:
Ans: For the accounts opened under Senior Citizen Deposit Savings Scheme,
exemption limits of Rs.10000/- is available for the Bank as a whole. If the
interest paid on such deposits exceeds Rs.10000/- TDS has to be deducted at
10% if PAN is available and at 20% if PAN is not available.
9.Whether there is any exeption for interest paid on NRO SB accounts for
deduction of tax at source.
Ans: There is no exemption for interest paid on NRO SB accounts and hence
the entire amount of interest paid on NRO SB account is taxable. Hence, tax is
to be deducted.
10.The eligibility criteria for Officers and Clerical for availing Car Loan as per
10thBipartite Settlementis(Ans:c)
a)All confirmed officers drawing Basic pay of Rs.31705/- p.m. or more
b)Clerical Staff members drawing Basic Pay of Rs.24675/- p.m. or more
c)Both (a) and (b).
11.A customer with a bearer cheque came for withdrawing the amount of
cheque for Rs.4000/-. The counter clerk expressed that the amount is not
sufficient to pass the cheque as the balance is short by Rs.700/-. The bearer of
the cheque deposited Rs.700/-and withdrawn the amount. Further account holder
objected for revealing the balance in the account. In such a situation what is his
liability?(Ans:d)
a) It is the responsibility of the customer to maintain sufficient balance in the

account while issuing cheque and hence bank is not liable
b) Anybody can deposit amount in any account and bank has no right to stop
such credits
c) Bank paid the cheque amount to the bearer since the instrument is in order
in all respects
d) Bank is not in order in disclosing the account balance to the bearer of the
instrument and hence liable for damages
e) None
12.LC states ?about' in case of amount, what does it indicate?(Ans:a)
a) 5% b) 10% c) 20% d) 25% e) None
13.Unspent foreign currency should be submitted with in how many days after
returning to India?(Ans:d)
a) Retain any amount of foreign currency
b) Returned to AD within 90 days
c) Allowed to retain $5000 US Dollars
d) Need to return unspent foreign currency within 180 days, if the amount
exceeds $2000 US Dollars
14.The minimum education qualification stipulated for borrower availing credit

limit of Rs.15 lakhs under PMEGP.(Ans:c)
a) Intermediate (10+2)
b) 10th Standard
c) 8th Class
d) None
15.As per AML/KYC norms, review of accounts, customer identification of data

is to be updated once in ?.. years & ?.. years for Low and Risk and High Risk
Category accounts.(Ans:c)
a) 2 Years & 1 Year
b) Once in two years
c) 10 yr & 2 yr
d) 8 yr & 2 yr
e) None
16.Joint account operated either or survivor, the number of nominees can

be(Ans:b)
a) Joint depositors are allowed to nominate one each
b) Only one nominee is allowed
c) No nomination facility is available for Joint Accounts
d) None
17.Premium payable on pre-shipment and post shipment whole turnover post

shipment packing credit.(Ans:c)
a) 5 & 10 ps per month
b) 5.50 & 6.00 ps per month
c) 6.00 ps per month
d) 6.00 & 5.50 ps per month
e) None
18.What is the maximum period of holdings in a Savings Bank account?

(Ans:e)
a) 2 Years
b) 5 Years
c) 10 Years
d) No maximum period
19.As per RBI guidelines, the exposure norms for Single & Group borrowers
including infra-structure projects are stipulated at ?? & ?? of Bank's Capital Funds
respectively. (Ans:c)
a) 10% & 20%
b) 15% & 40%
c) 20% and 50%
d) 20% & 40%
e) None
20.Which are the interest rates decided by the Banks?(Ans:e)
a) Repo Rate
b) Bank Rate
c) Base Rate
d) SB Rate
e) c & d
21.Short term crop loan treated as NPA if it remains unrecovered for(Ans:b)
a) One Crop Season
b) Two Crop Seasons
c) One Crop Season + 90 days
d) Existing NPA norms that are applicable for Term Loans
e) None
22.For appealing to DRT, the borrower need to deposit(Ans:a)
a) 25% of suit amount
b) 10% of suit amount
c) 15% of suit amount
d) No deposit required
e) None
23.Women granted a loan of Rs.80 lakhs under CGTMSE, what is the amount of
claim in case of default?(Ans:a)
a) Rs.40 lakhs
b) Rs.52.50 lakhs
c) Rs.60 lakhs
d) Rs.64 lakhs
e) None
24.The minimum CRR should be ?? maintained on daily basis.(Ans:b)
a) 50% of eligible CRR
b) 70% of eligible CRR
c) 80% of eligible CRR
d) 100% of eligible CRR
e) None
25.Nominee obtains payment in the capacity of(Ans:d)
a) Owner
b) Beneficiary
c) Agent
d) Trustee
e) None
26.Staff should present in the branch 15 minutes before commencement of

business hours, this is applicable to(Ans:a)
a) All Branches
b) Rural Branches only
c) Urban & Metro Branches
d) No such stipulation
e) None
27.Once the guarantor repays the loan and he attains the status of(Ans:d)
a) Debtor
b) Creditor
c) Agent
d) Right of subrogation
e) None
28.The present rate of service tax including cess is(Ans:a)
a) 12.36%
b) 12%
c) 10.30%
d) 10%
29.Banks obtain photograph at the time of opening of the account with a view
to(Ans:d)
a) Avoid benami accounts
b) Verify the identity of the customer
c) Verify with police records
d) a & b
e) a to c
30.Banks can extend Education loans to the students to pursue studies in India
and Abroad with a maximum amount of(Ans:c)
a) Rs.5 & Rs.10 lakhs
b) Rs.10 & Rs.20 lakhs
c) There is no cap on maximum amount
d) 80% of education cost without any cap on maximum loan
e) None
31.As per RBI guidelines, Branch to issue to SB account holders(Ans:c)
a) Pass Book
b) Account Statement
c) a & b
d) None
32.Post dated cheque presented in clearing paid by the bank and at the same
time another cheque presented was returned as there is no sufficient balance in
the account. Customer claimed for damages. What is the liability of the bank?
(Ans:b)
a) Bank can make payment of post dated cheque, if the instrument is

otherwise in order
b) Bank is not in order in making payment of post dated cheque
c) It is the responsibility of the depositor to mention correct date while issuing

cheque and hence banker is not liable
d) Issuing cheque without adequate balance is the responsibility of the

customer and hence banker is not liable
e) None.
33.At present, Banks are required to maintain SLR at(Ans:b)
a) 22%
b) 21.50%
c) 24.50%
d) 25%
e) None
34.Service charges levied are to be displayed by the bank in(Ans:e)
a) Bank's own Website
b) RBI Website
c) Branch Premises
d) IBA Website
e) a to c
35.The form SDF is used for exports where(Ans:b)
a) Custom office is not computerized
b) Custom office is computerized
c) Software
d) Sent by Post
36.Banks to submit Wilful Defaulters list to(Ans:c)
a) RBI with all accounts irrespective of liability
b) CIBIL
c) RBI where the liability is Rs.25 lacs & above
d) Banking Division, New Delhi
37.Banks are required to submit CTR (Cash Transaction Report)

to____within____of succeeding month.(Ans:b)
a) FIU, 30 days
b) FIU, 15 days
c) FIU, 7 days
d) RBI, 7 days
e) RBI, 15 days
38.Premium payable on deposit insurance on every Rs.100 per annum

is(Ans:a)
a) 10 paise
b) 5 paise
c) 25 paise
d) 50 paise
39."Floating charge" is a charge created on(Ans:e)
a) Immovable Assets
b) Movable Assets
c) Assignment
d) Deposits
e) Assets created out of Bank finance
40.Who is not eligible to convert general crossing to special crossing?

(Ans:e)
a) Holder
b) Drawer
c) Payee
d) a & b
41.Banks can create assignment on(Ans:a)
a) Book Debts
b) Stocks
c) Land & building
d) Deposits
e) Immovable
42.Banks are required to preserve old records as per(Ans:a)
a) BR Act
b) RBI Act
c) Indian Contract Act
d) NI Act
e) Evidence Act
43.Deposits which are exempted from Tax Deduction at Source (TDS)

are(Ans:e)
a) Fixed
b) Savings
c) NRE/FCNR
d) Recurring
e) b, c & d
44. Which statement is not correct with regard to advances against shares?
(Ans:c)
a) Maximum loan allowed is Rs.10 lacs against physical shares
b) Maximum loan allowed is Rs.20 lacs against demat shares
c) Margin requirement is 50% for physical shares & demat shares
45.Garnishee order is not applicable(Ans:d)
a) Credit balance in SB
b) Credit balance in CD
c) Credit balance in Cash Credit account
d) Term Deposits in the Joint names
46.As per RBI guidelines, banks need to register the charge over the property
with CERSAI within ??. days from the date of creation of charge.(Ans:b)
a) 15 days
b) 30 days
c) 60 days
d) 90 days
e) None
47.The method of interest booking on agriculture advances is(Ans:a)
a) Monthly
b) Quarterly
c) Half-yearly
d) Yearly
e) None
48.RBI injects liquidity through(Ans:b)
a) Increase Bank Rate
b) Reduction of Repo Rate
c) Reduction of Reverse Repo
d) Increase CRR
e) Increase SLR
49.Provisioning norms are not applicable to loans sanctioned

to(Ans:e)
a) Agriculture
b) Exports
c) DRI
d) Govt. Sponsored Schemes
e) Against Deposits
50.As per Basel-III, the banks are required to maintain minimum capital
adequacy at?.(Ans:b)
a) 12%
b) 11.5%
c) 11%
d) 10%
e) 9%
51.Fixed Deposit is maturing on Sunday. It shall be deemed to be payable

on(Ans:b)
a) Monday
b) Immediate succeeding working day
c) Preceding Day i.e. Saturday
d) a & b
52.What is the tag line of "PMJDY"?(Ans:a)
a) Mera Khatha Bhagya vidhata
b) Khatha Kholo Paisa Bachao
c) Hamara Katha Bhagya Vidhata
d) Hamara Katha Hamara Swabhiman
53. Exporter avail pre-shipment credit at the request of the issuing bank on the
basis of(Ans:a)
a) Green Clause Credit LC
b) Revocable LC
c) Red Clause LC
d) Back to Back LC
54.A person appointed by the court to look after the properties of the insolvent
person is called
(Ans:b)
a) Administrator
b) Liquidator
c) Assignee
d) Attorney
55.Clayton's rule applies to(Ans:d)
a) Deposit Accounts
b) Demand Loans
c) Term Loans
d) Overdrafts / Cash credits
56.Percentage of DRI advances should go to Rural/Semi Urban

Branches.(Ans:c)
a) 50%
b) 25%
c) 66.66%
d) 75%
57.What is the maximum amount Branch can extend instant credit to the
customers against outstation cheques?(Ans:a)
a) Rs.15000 at all Branches
b) Rs.25000 in Urban/Metro Branches
c) Rs.10000 at all Branches
d) Discretion of the Branch Manager
e) None
58.Which of the following statements are not correct with regard to MSME?
(Ans:e)
a) Investments in Plant & Machinery is to be taken as criteria for

Manufacturing Enterprises
b) Investment in Equipment is to be taken as criteria for Service

Enterprises
c) No collateral security or third party guarantee is required for loans up to

Rs.5 lakhs
d) No collateral security or third party guarantee is required for loans up to

Rs.25 lac in case of Tiny Sector
59.UCPD guidelines are issued by(Ans:e)
a) FEDAI
b) RBI
c) Ministry of Finance
d) IBA
e) ICC Paris
60.Your customer requested to include his wife and daughter as nominees after
one year of opening of the account. Will it be accepted?(Ans:d)
a) It can be accepted since the nominees are the family members of the
depositor
b) Cannot be considered since the request is not received at the time of

opening of account
c) Can be considered with 50% share each
d) Nomination should be made only in favour of single name. Hence can't be

considered
61.What is Bharat Bill Payment System (BBPS)?
Ans: Bharat Bill Payment System (BBPS) is an integrated bill payment system
which will offer interoperable bill payment service to customers online as well as
through a network of agents on the ground. The system will provide multiple
payment modes and instant confirmation of payment.
62.Where I can find more details about the BBPS system?
Ans: The policy guidelines for the BBPS system were issued by the RBI on Nov.28,
2014. The document is available in the following
link.https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=9368&Mode=0 The
BBPS will operate as a tiered structure with a single Bharat Bill Payment Central
Unit (BBPCU) and multiple Bharat Bill Payment Operating Units (BBPOUs).
63. What is Bharat Bill Payment Central Unit (BBPCU)?
Ans: Bharat Bill Payment Central Unit (BBPCU) will be a single authorized entity
operating the BBPS. The BBPCU will set necessary operational, technical and
business standards for the entire system and its participants, and also undertake
clearing and settlement activities. As indicated in the circular dated November
28, 2015 National Payment Corporation (NPCI) has been identified to act as
BBPCU. It will be an authorized entity under the Payment and Settlement
Systems Act, 2007.
64. What is Bharat Bill Payment Operating Unit (BBPOU)?
Ans: Bharat Bill Payment Operating Units (BBPOUs) will be authorised operational
entities, adhering to the standards set by the BBPCU for facilitating bill payments
online as well as through a network of agents, on the ground.
65. What is the current scope of Bharat Bill Payment System (BBPS)?
Ans: To start with, the scope of BBPS will cover repetitive payments for everyday
utility services such as electricity, water, gas, telephone and Direct-to-Home
(DTH). Gradually, the scope would be expanded to include other types of
repetitive payments, like school/university fees, municipal taxes etc.
66. Where can we get more details about the activities of BBPCU and BBPOU
standards?
The prospective applicants for authorization / approval to function as BBPOUs

may approach National Payments Corporation of India (NPCI) for further details
on the Procedural Guidelines and other technical and operational aspects /
details.
67. Who should apply for authorisation to become BBPOUs?
Ans: Banks and non-bank entities presently engaged in any of the above bill
payment activities falling under the scope of BBPS and desirous of continuing the
activity are mandatorily required to apply for approval / authorisation to Reserve
Bank of India under the Payment and Settlement Systems (PSS) Act 2007.
68. What is the time frame for applying for authorization/approval to the Reserve
Bank of India?
The applications for authorization / approval from non-bank entities and banks
will be accepted till close of business on November 20, 2015.
The above timeline has been extended upto December 18, 2015.
69. Whether it is mandatory for all entities (banks and non-banks) doing bill
payments to apply for authorisation to Reserve Bank?
Ans: The entities currently engaged in bill payments which are falling under the
existing scope of BBPS will mandatorily have to apply to Reserve Bank for
authorisation.
70. If the entity does not fall under the present scope of BBPS, whether it is still
required to apply for authorisation?
Ans: Entities engaging in bill payment activities not covered in the present scope
of BBPS need not apply for authorisation now. These entities may be required to
apply for authorisation as and when the scope of the BPPS is expanded in future.
A separate notification will be issued by the Reserve Bank.
71. What will happen to the application when the entity meets all the eligibility
criteria?
Ans: The Reserve Bank of India will issue in-principle authorisation to entities
which meet the eligibility criteria and other due diligence checks carried out as
part of authorisation. The final authorisation to commence the business will be
issued after submission of System Audit report and obtaining certification from
NPCI to join the BBPS system.
72. What will happen to the application if any entity already engaged in bill
payments does not meet the eligibility criteria?
Ans: Those entities which have applied for authorisation but do not presently
meet the eligibility criteria will be given one-time extension upto December 31,
2016 to meet the eligibility criteria. During this period, the entities can continue
to engage in bill payments activities covered under the scope of BBPS.
73. Whether an entity which has been granted extension will be required to
inform RBI when they meet the eligibility criteria?
Ans: Yes, the entity will be required to report to RBI as and when it meets the
eligibility criteria, but not later than December 31, 2016, for obtaining
authorisation to operate as BBPOU.
74. What will happen if an entity is not able to meet the eligibility criteria by
Dec.31, 2016?
Ans: The entities which have been given extension of time but fail to meet the
eligibility criteria by December 31, 2016 will be required to become agents of the
existing BBPOUs or exit the business of bill payments covered under the scope of
BBPS by May 31, 2017.
75. Will the BBPS guidelines apply to billers own collection centers operated by
them?
Ans:No.The billers own collection points will continue as hitherto, even after
operationalisation of BBPS.
76. Whether the entities ( banks and non-banks), who are presently engaged in
the bill payment activities falling under the scope of BBPS but want to become
an agent only in future of a BBPOU, are also required to submit their application?
Ans: No, the entities (bank or non-banks) presently engaged in bill payment
activities covered under the scope of BBPS desirous of operating only as agents
under BBPS system are not required to apply for approval/authorisation to
Reserve Bank.
77. In what capacity entities, which have been granted in-principle approval by
RBI as a "small bank" or "payment bank", should apply for BBPOU authorisation as a bank or a non-bank?
Ans: Such entities will be required to apply for authorisation to Reserve bank
under their current legal status.
78. Whether the non-bank entities will be required to show upfront that they are
meeting the capital requirement for BBPOUs?
Ans: If an entity applying for authorisation for BBPOU does not have the required
networth as indicated in the eligibility criteria, then they are required to
demonstrate unequivocal commitment / sources for raising the funds and also
specify the time period within which the funds will be raised.
79. Whether the window for approval/authorisation will be opened in future date
for existing entities (banks and non-banks)?
Ans: Depending on the development, growth and expansion of the scope of

BBPS, the Reserve Bank may decide to open approval/authorisation window once
again at a future date.
80. Whether the authorisation window will be opened again by Reserve Bank? In
which case, who will be eligible for applying for authorisation at that time?
Whether entities (bank and non-banks) currently not engaged in bill payment
activities can also apply for approval/authorisation?
Ans: As indicated above, depending on the development, growth and expansion

of the scope of BBPS, the Reserve Bank may decide to open
approval/authorisation window once again at a future date.
All entities engaging in bill payment activities and meeting the requisite
eligibility criteria for authorisation / approval as BBPOUs can apply as and when
the window is opened again.
81. Whether it is mandatory for banks to submit copy of the "Board approval"
while applying for approval to Reserve Bank?
Ans: Submission of Board approval will facilitate speedier processing of

applications. If, however, a bank is unable to do so, it will be required to clearly
indicate the timeline by which they will be submitting their "Board approval" in
their application, and the application will be processed only thereafter.
??????????????????
IBEU (AP) \ AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT.
??????????????????
THE INDIAN BANK EMPLOYEES' UNION (A.P.)
REGD.NO.1027
BANJARA SADAN, ST.NO.15, HIMAYATNAGAR, HYDERABAD - 500 029.
????????????????????????
OBJECTIVE QUESTIONS FOR CLERICAL TO OFFICER PROMOTION TEST.
??????????????????????
IBEU (AP) / AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT.
??????????????????????
WISHING YOU " ALL THE BEST "
? ?? ? ????????????
1. Trust Receipt is
a) A receipt acknowledging receipt of goods by a Registered Trust.
b) Document executed by the borrower in favour of the bank when the bank
hands over possession of goods under pledge to the borrower, stating that the
goods/sale proceeds of the goods will be held by the borrower on behalf of the
bank.
c) A document executed by bank in favour of another bank for transfer of

goods in case a borrower switches over his account from one bank to another.
2.DSCR in case of term loan is calculated . Formula is (Ans:c)
a) (PAT + Dep ) / (Intt on T/L + Installment)
b) (PAT + Dep + Intt on T/L) / Installment
c) (PAT + Dep + Intt on T/L) / (Intt on T/L + Installment)
d) (PAT + Dep + T/L) / (Intt on T/L + Installment)
3.Working capital gap means (Ans:d)
a) Current assets minus current liabilities.
b) Net worth minus current liabilities.
c) Net worth minus outside borrowings.
d) Total current assets minus other current liabilities ie other than bank
borrowings
4.Debt equity ratio indicates (Ans:a)
a) Solvency position of the company.
b) Ratio of fixed assets to current assets.
c) Liquidity position of the company.
d) Ratio of current liabilities to term liabilities
5.Tangible Net worth comprises of (Ans:d)
a) Current Assets and Current Liabilities.
b) Fixed Assets and Term Liabilities.
c) Equity Shares Capital and Current Liabilities.
d) TNW - Intangible assets
6.Current Ratio indicates (Ans:a)
a) Liquidity position of the Company.
b) Long term solvency of the company.
c) Term loan repaying capacity of the company.
d)Ability to pay dividend to the share holders.
7.Net profit is the (Ans:a)
a) Profit achieved after deducting all expenses & provisions from net sales.
b) Profit achieved after deducting only extra - ordinary expenses.
c)Profit achieved after deducting only those expenses that are connected with
the business.
d)none of the above.
8.Operating Profit is the.
(Ans:b)
a)Profit minus all expenses
b)Gross Profit - Selling , general & Administrative exp
c)Profit achieved in the past year.
d)Average profit of the last three years
9.Gross Profit means:(Ans:a)
a) Net sales minus Direct Manufacturing expenses
b) Net Sales
c) Net Sales minus all expenses
10.Balance Sheet shows:-(Ans:c)
a) The performance and financial position of the company.
b) Performance of the company.
c)Financial position of the company as on a particular date.
11. Profit & Loss Account indicates (Ans:a)
a) Performance of the company over a period of time.
b) Financial status of the company.
c) Financial position of the company
12. Financial Statements of the company are (Ans:c)
a) Statement showing Stock position of the Company.
b) Statement required to be submitted by the borrowers to Reserve Bank of

India.
c) Profit and Loss Account and Balance Sheet of the Company.
d) Statements such as QIS and MSOD.
13.Marginal Standing Facility is ______% over ___________rate (Ans:b)
a) 1%, bank
b) 1%, repo
c) 2%, bank
d) 1%, base
14.What is the interest rate that will be paid by the RBI on the CRR balance
maintained by Banks with it?(Ans:a)
a) 0%
b) 4.75 %
c) Bank rate
d) Bank Rate - 2%
15. A Demand Promissory Note payable to bearer can be issued by :

(Ans:d)
a) Any person competent to contract
b) Banks only
c) Central Govt.
d) RBI
16.Maximum Number of Deputy Governors in RBI is : (Ans:c)
a) 2
b) 3
c) 4
d) 5
17.The total no. of Directors for RBI is : (Ans:c)
a) 10
b) 15
c) 20
d) None of These
18.We are not required to file FIR individually if the No. of Counterfeit Currency
tendered by a customer is upto :(Ans:b)
a) 5 pieces
b) 4 pieces
c) 3 pieces
d) No such relaxations
19.A Co. whose Paid up Capital is Rs. 200 Cr. has applied for raising loan of Rs.
60 Cr. from a Bank whose Capital is Rs. 100 Cr. & Reserves being 20 Cr. What is
the maximum amount of loan that the Bank can give?(Ans:b)
a) 30 Cr.
b) 36 Cr.
c) 50 Cr
d) 60 Cr.
20.A person is having 1000 shares of Indian Bank, Present Value Rs.
1,10,000/- . How much is the amount of loan allowed by our Bank as per our
Loan Policy?(Ans:d)
a) Rs. 99000
b) Rs. 100000
c) Rs. 55000
d) None of the these
21.Banks are required to maintain SLR in accordance with(Ans:c)
a) Sec 42 of BR Act
b) Sec 42 of RBI Act
c) Sec 24 of BR Act
d) Sec 24 of RBI Act
22.The latest addition to Public Sector Bank is(Ans:d)
a) ICICI Bank
b) Corporation Bank
c) Oriental Bank of Commerce
d) IDBI Bank
23. The maximum denomination of Bank Note that can be issued by RBI is:
(Ans:d)
a) 500
b) 1000
c) 5000
d) 10000
24. Bank Rate is at par with (Ans:c)
a) CRR
b) Repo Rate
c) MSF Rate
d) None of These
25. 8 Scheduled Banks are the Banks which are included in _ schedule of the RBI
Act (Ans:b)
a) First
b) Second
c) Third
d) Fourth
26. RBI can give directions to a banking company -(Ans:b)
(a) Purpose for which a bank cannot give advance
(b) maximum amount of advance which can be given
(c) Rate of interest and other terms & conditions as per
27.As per Sec 5(n) of BR Act, a secured advance is one where the value of
security as compared to the amount outstanding is not less than
(Ans:d)
a) 10%
b) 30 %
c) 50 %
d) 100%
28.In the Fixed Deposit Receipt the nomination is done under

Section:(Ans:b)
a) 43 ZA of RBI Act
b) 45 ZA of BR Act
c) 41 Z of Payment of Deceased Assets Act
d) NoA
29.No company other than a banking company is permitted to use as part of

its name words like Bank/ Banker/ Banking as per which section of BR Act
(Ans:c)
a) Sec 5
b) Sec 6
c) Sec 7
d) Sec 8
30.A bank cannot hold immovable property (except for its own use) for any
period exceeding.(Ans:a)
a) 7 years
b) 10 years
c) 20 years
d) 25 years
31.Before declaring any dividend, a banking company is required to transfer

not less than ______% of the profit made during the year to Reserve fund.
(Ans:c)
a) 10
b) 15
c) 20
d) 25
32.As on last Friday of every quarter the assets of a bank must not be less than
______% of its Demand & Term Liabilities in India (Ans:c)
a) 60
b) 70
c) 75
d) NoA
33.A Negotiable instrument is a Promissory Notes, Bill of Exchange and Cheque

payable to order or bearer as per ____ of NI Act(Ans:b)
a) Sec 7
b) Sec 13
c) Sec 18
d) NoA
34.Mr X purchases goods from Mr Y for Rs.1000/-, Mr Y buys goods from Mr. Z
for Rs.1000/- Then Mr Y now orders Mr X to pay Rs. 1000/- to Mr. Z. Here X, Y & Z
are(Ans:c)
a) Drawer, Drawee & Payee
b) Drawer, Payee & Drawee
c) Drawee, Drawer & Payee
d) Drawee, Payee & Drawer
35.A negotiable instrument dated 29th January, 2012 is made payable at one
month after date. The instrument is at maturity on(Ans:d)
a) 28th Feb 2012
b) 1st Mar 2012
c) 29th Feb 2012
d) 3rd Mar 2012
36.A cheque is issued to an illiterate who endorses it by putting his thumb

impression. Can it be called a valid endorsement?(Ans:b)
a) No
b) Yes if attested by a person who puts his full address
c) Yes if attested by a person who puts his full signature
d) Cheque can't be issued
37.Crossing of a cheque can be cancelled by the(Ans:a)
a) Drawer
b) Drawee
c) Both
d) It can't be cancelled
38.If a cheque is crossed generally with words not negotiable it

means(Ans:c)
a) Holder has better title than holder in due course
b) Holder in due course has better title than Holder
c) Holder in due course has the same title as holder
d) As the cheque is not negotiable it cannot be negotiated now
39.A Cheque is presented for payment with Rs. Sixty Thousand written in
words & Rs. 6000/- in figures. Our course of action will be(Ans:d)
a) We will pay Rs. 60000/-
b) We will return the cheque
c) We will pay Rs. 6000/-
d) We will pay 60000/- if there is no material alteration
40.The signature on blank paper purports to an authority to the holder to fill up

the blanks and complete the paper as a negotiable instrument. This is called
as(Ans:a)
a) principle of estoppel
b) Clayton's Rule
c) Ambiguous Endorsement
d) NoA
41.The drawee of a Cheque having sufficient funds of the drawer in his hands
properly applicable to the payment of such cheques must pay the cheque when
duly required to do and in default must compensate the drawer for any loss or
damage caused as per Sec _____ of NI Act(Ans:a)
a) 31
b) 85
c) 89
d) 131
42.If a paying bank pay in good faith & after careful examination, no material
alteration can be detected, the Bank is protected as per Sec ___________ of NI
Act(Ans:c)
a) 31
b) 85
c) 89
d) 131
43.Which of the following rates of Banks are regulated by the RBI(Ans:d)
a) Base Rate
b) SB Rate
c) NRI Deposit
d) NoA
44.RBI can issue directions to Banks in Public interest or in interest of Banking

Policy as per which act? (Ans:c)
a) Sec 35 A of RBI Act
b) Sec 35 A of BR Act
c) Sec 35 A of BR Act
d) Sec 42 (1) of RBI Act
45.BR Act is applicable to(Ans:d)
a) Primary Agriculture Credit Societies
b) Non Agricultural Primary Credit Soc
c) Co-operative Land Mortgage Banks.
d) NoA
46.NI Act came into force from(Ans:c)
a) 01-03-1881
b) 01-01- 1882
c) 01-03-1882
d) NoA
47.The total number of Sections as per NI Act is (Ans:c)
a) 131
b) 138
c) 147
d) 151
48.A Bill of Exchange where the drawee is a Bank & is payable always on
demand is (Ans:c)
a) Demand Bill
b) Usance Bill
c) Cheque
d) DP Note
49.A piece of paper used for subsequent endorsements if there is no space on

instrument is called(Ans:b)
a) Facultative
b) Allonge
c) Escrow
d) NoA
50.When a cheque is returned unpaid by the bank for reasons - Insufficient

funds, No arrangement, Exceeds arrangement, Payment stopped, Refer to
drawer, Closure of a/c etc. the drawer is considered to have committed offence
under Sec _____ of NI Act(Ans:b)
a) 135
b) 138
c) 141
d) 144
51.After 15 days notice , Criminal Suit can be filed against the drawer of
cheque within(Ans:a)
a) One month
b) Six Months
c) One Year
d) Two Years
52.A cheque drawn in favour of x is crossed "not negotiable". X endorses the

cheque in favour of Y for valuable consideration. Y
becomes(Ans:c)
a) A holder in due course
b) an assignee for the amount of cheque
c) only a holder
d) the cheque can not be endorsed
53.A bill of exchange favouring A or order was endorsed by A on the reverse

of the instrument as pay B or order and signed below that. Before it could be
delivered to B, A passed away. Thereafter the legal heirs of A delivered the
instrument to B. In this case(Ans:b)
a) The negotiation is valid as both endorsement & delivery has taken place
b) It is invalid negotiation as the legal heir of A cannot complete its negotiation

by delivery.
c) The importance is endorsement and not delivery and hence it is valid.
54.P of Kanpur draws a bill on Q of London payable at Mumbai The bill is

a(Ans:a)
a) Inland bill
b) foreign bill
c) demand bill
d) none of the above
55.A cheque for RS 10000/- has been presented in clearing and the cheque has
been debited to the respective account. You receive a stop payment instruction
from the drawer before the returns are sent by the branch. In this situation You
will(Ans:a)
a) return the cheque after cancelling the debit entry
b) since account is already debited you cannot accept stop payment

instruction.
c) It is up to the banker to decide
56.A is having a current account and the minimum balance required is

Rs5000/. The present balance is Rs 6000/-.A cheque is presented in clearing for
Rs 6000/- Now(Ans:c)
a) You will return the cheque
b) You will pass the cheque and close the account
c) You will pass the cheque
57.In terms of sec 138 of N.I Act 1881 ,the payee should give notice within---days of receipt return of cheque for insufficient balance(Ans:b)
a) 15 days
b) 30days
c) 1 month
d) 48 hours
58.A bill of exchange drawn by X on Y bears across its face two parallel
transverse lines. Therefore (Ans:c)
a) The bill is crossed generally
b) The bill is specially crossed
c) The bill contains superfluous extraneous addition.
d) The bill cannot be endorsed further.
59.Account Payee in crossing is addressed to(Ans:a)
a) Collecting Banker
b) Payee
c) Drawee Banker
d) 1 and 2
60. "Account Payee" in crossing with two transverse parallel lines is

(Ans:b)
a) Special crossing
b) General Crossing
c) Restricted crossing
d) NoA
61.A bearer cheque with general crossing is paid across the counter to the
bearer of the cheque. Later on it was found that the cheque was stolen. In this
case the banker is(Ans:b)
a) liable to the original owner of the cheque
b) liable to the true owner of the cheque
c) will not be liable since it is a bearer cheque
62.An endorser of a negotiable instrument may, by express words in the

endorsement excludes his own liability there on. Such an endorsement
is(Ans:c)
a) Facultative endorsement
b) partial endorsement
c) endorsement "sans recourse"
d) restrictive endorsement
63.A cheque of Central Bank of India bears a round stamp of Dena Bank and
collection number of the bank. The cheque is(Ans:b)
a) Generally crossed
b) specially crossed to Dena Bank
c) uncrossed
d) NoA
64.When an endorser adds the words "Notice of dishonor waived" such an

endorsement is known as: (Ans:b)
a) Restrictive endorsement
b) Facultative endorsement
c) Conditional endorsement
d) Partial endorsement
65.With the amendment to N.I act on 01-04-1989(sec 138) Dishonor of

cheques for insufficiency of funds is deemed an offence. the drawer of the
cheque may be punished.(Ans:d)
a) Imprisonment for a term up to 1year or fine upto twice the amount of the
cheque or with both
b) Imprisonment for a term of 2 years
c) fine up to thrice the cheque amount
d) imprisonment upto 2 years or fine which may extend to twice the amount of
the amount of cheque or with both
66.Which of the following is true(Ans:a)
a) Promissory notes and Bills of exchange are to be stamped as per Indian

stamp Act 1899
b) Promissory notes and cheques are to be stamped
c) Cheques and bills of exchange are to be stamped d) All are to be stamped
67.The N.I act 1881 allows three days grace to(Ans:b)
a) sight bills of exchange
b) usance bills
c) promissory notes
d) cheques
68.A usance bill is presented for acceptance to the drawee. He has to accept
in(Ans:b)
a) within 24 hrs
b) within 48 hrs
c) within 72 hrs
d) no time limit
69.Section 6 of N.I act deals with(Ans:d)
a) cheques
b) truncated cheques
c) electronic form of cheque
d) all the above
70.A crossed cheque (Ans:c)
a) Must be credited to the account of the payee or endorsee
b) May be paid in cash across the counter
c) Should be paid to a banker only
d) None of these
71.When an order cheque is endorsed in blank:(Ans:b)
a) Its further negotiation is restricted
b) It becomes payable to bearer and transferable by mere delivery
c) It loses the characteristic of negotiability
d) None of these
72.A endorses a negotiable instrument in favour of B. Here(Ans:a)
a) A is the endorser and B is the endorsee
b) B is the endorser and A is the endorsee
c) both are endorsers
d) both are endorsees
73.Who is incompetent to endorse a negotiable Instrument?(Ans:d)
a) Minors
b) Married women
c) Illiterate
d) None of these
74.What is the maximum number of endorsements that are allowed on a

Negotiable Instrument?
(Ans:d)
a) One
b) Two
c) Five
d) No limit
75.A is holder of a cheque who endorses sans recourse to B and B to C and C

to D who endorses it to E. Cheque is dishonored. E can claim
from:(Ans:a)
a) B, C and D
b) E cannot claim from any one
c) E can claim from al
d) E can claim from A
76.Stamp Duty applicable on a promissory note payable otherwise than on

demand depends on:(Ans:d)
a) Amount only
b) Amount and as per state Stamp Act
c) Tenor only
d) Amount and usance period
77.At present the Bank rate, CRR, and SLR are respectively(Ans:a)
a) 7.75% ,4.00% , 21.50%
b) 9.5 %, 5.50 %, 25%
c) 6 %, 5.50 %, 25%
d) 9.5 %, 4.75 % ,24%
78.Which of the following statement is incorrect in view of the provisions

contained in the Negotiable Instruments Act, 1881?(Ans:a)
a) The holder may convert a special crossing into a general crossing or he may
cancel a crossing altogether under his signature.
b) The holder may add general or special crossing to an uncrossed cheque
c) If a cheque is already crossed generally, the holder may add special crossing
d) Where a cheque is crossed generally or specially, the holder may add the
words "Not Negotiable"
79.Ajay endorses the cheque in favour of Bhawana who further endorses the
cheque to Chetna. However Bhawana dies before handling over the instrument
to Chetna. How can the executor of Bhawana transfer the cheque to Chetna?
(Ans:b)
a) Fresh endorsement
b) Re-endorsement and delivery
c) Delivery only
d) None of the Above
80.A Negotiable Instrument can be endorsed by signing the same

on:(Ans:d)
a) A slip of paper annexed to the instrument
b) The back thereof
c) Face thereof
d) The back or face thereof or on a slip of paper annexed thereto
81.The following cannot delegate his powers to a third party: (Ans:d)
a) Trustee
b) Executor
c) Power of Attorney holder
d) All of these
82.Agency is not terminated in the following case(Ans:c)
a) Death of agent
b) death of principal
c) insolvency of agent
d) none of these
83.A minor was given a loan on the basis of his declaring to be a major & his
father coming as a Guarantor. Now the minor who subsequently attained the age
for being major is not repaying.(Ans:c)
a) Bank can file suit against the minor as he is now a major
b) Bank can proceed against the father who has signed as a guarantor
c) Bank cannot recover from either of them
d) Bank is free to proceed against both borrower & guarantor for recovery.
84.A Cheque signed by the Treasurer & Secretary of a club, presented for
payment. The bank comes to know that the Secretary died yesterday in road
accident. The cheque should be returned with the
reason :(Ans:d)
a) Refer to drawer
b) Account holder reported dead
c) Present after proper signature
d) The cheque should not be returned
85.An Illiterate Minor of age above _______ can be open his/her account singly
(Ans:d)
a) 10 years
b) 12 years
c) any age
d) Illiterate Minors can't open individual a/c
86.Which of the following is a foreign bill(Ans:d)
a) A bill drawn in sets
b) A bill drawn at Chennai on a party in Calcutta and payable at Colombo
c) a bill drawn at Mumbai on a party in New York payable at New Delhi
87.As per Indian Contract Act, a contract with whom can be termed as valid &
enforceable?(Ans:d)
a) Minor
b) insolvent
c) lunatics
d) illiterate
88.SARFAESI act is applicable on which of the following NPA

A/cs(Ans:b)
a) Housing loan of Rs.20 lacs sanctioned , present O/s Rs.3 lacs
b) Tractor Loan of Rs. 4 lacs with hypothecation of tractor
c) Dairy loan of Rs. 2 lacs with mortgage on agricultural land
d) Jewel loan of Rs.2 lacs, present O/s Rs. 95000/-.
89.A and B are having a savings account with operational instructions payable
jointly and C is the nominee. Now A has expired. The balance in the account is
payable to(Ans:c)
a) C only
b) B only
c) legal heir of A and B
d) C and B only
90.A has got a term loan account and the balance of Rs 10000/-has been
recalled. You receive a garnishee order from court for RS 10000/ attaching the
credit balance of RS 10000/- maintained by A. you will
(Ans:a)
a) Exercise right of set off against the credit balance and inform the court
accordingly
b) comply with the court order
c) remit 50% and appropriate 50 % towards loan account
d) seek instructions from court
91.Mortgage is defined under(Ans:c)

a) contract act
b) sale of goods act
c) transfer of property act
d) NoA b bh
????????????????????
IBEU(AP) / AIBEA TRULY CARES EVEN FOR YOURCAREER DEVELOPMENT.
????????????????????
Wishing you ' All the Best '.
???????????
OBJECTIVE TYPE QUESTIONS FOR CLERICAL TO OFFICER PROMOTION TEST
??????????????????????
IBEU AP/AIBEA TRULY CARES
??????????????????????
EVEN FOR YOUR CAREER DEVELOPMENT
??????????????????????
WISHING YOU ?ALL THE BEST?
-------------------------------------------------------1)What are the individual dots which make up a picture on the monitor screen
called?(Ans:b)
a)Colored spots
b)Pixels
c) Pixies
d) Non of the above
2)What do you need for an inkjet printer?(Ans:a)
a)A Catridge
b)A Drum
c)A ribbon
d)A cassette
3)You can ________ protect a floppy disk.(Ans:b)
a)Read
b)Write
c)Read and Write
d)None of the above
4)Which storage device cannot be erased?(Ans:a)
a)A CD-ROM
b)A floppy disk
c)Magnetic tape storage
d)None of the above
5) The Govt. of India has notified the MSMED Act in-(Ans:b)
a) June 2006
b) Oct 2006
c) Sept 2007
d) Jan 2007
6) With the enactment of MSMED Act, the paradigm shift that has taken place
is-(Ans:b)
a) Rights of the supplier has been protected
b) Penalties on big corporate has been introduced.
c) Inclusion of service sector in the definition of MSME
d) Revising the quantitative limits of MSME.
7) As per MSMED Act, a micro manufacturing enterprises is-(Ans:a)
a) An Enterprise. where investment in plant and machinery does not exceed

Rs. 25 lakh.
b) a manufacturing enterprise, which has been sanctioned a composite loan of

Rs.25 lakh.
c) a manufacturing enterprises which has net profit upto Rs.25 lakh.
d) a manufacturing enterprises having turnover upto Rs.25 lakh.
8) In a MSE unit, the machinery financed by the bank is set up on a plot owned
by borrower & unencumbered. To take CGTMSE cover-(Ans:c)
a) Machinery can be taken as primary security but not the plot as it is a

collateral security.
b) Machinery alone can be taken as primary security.
c) Machine as well plot can be taken as primary security.
d) Neither machine nor plot needs to be taken as security.
9) The maximum coverage a MSE unit will get from CGTMSE, if it has been
given loan of Rs.75 Lakh to male entrepreneur having set up his unit in
Kolkata.(Ans:b)
a) Rs. 37.50 lakh
b) Rs.50 lakh
c) Rs.45 lakh
d) Rs.56.50 lakh
10) The Maximum coverage a MSE unit will get from CGTMSE for a loan of Rs.10
lakh(Ans:c)
a) Rs.5 lakh
b) Rs.4.50 lakh
c)Rs.7.50 lakh
d) Rs.8.50 lakh
11) For a loan sanctioned on 01.08.2011 to a MSE unit, the last date of taking
guarantee cover is-(Ans:d)
a) 31.08.2011
b) 30.09.2011
c) 31.03.2012
d) 31.12.2011
12) For a loan sanctioned on 01.07.11 to a MSE unit for which guarantee cover
is taken. The Demand advice from CGT is received of dt 04.07.11 whereas first
disbursement was made on 05.08.11. The last date available to pay the one time
guarantee fee is-(Ans:c)
a) 31.07.11
b) 04.08.11
c) 05.09.11
d) 30.09.11
13) In the Question, the last date of payment of Annual Service Fee is-(Ans:d)
a) 31.07.11
b) 04.08.11
c) 31.12.12
d) 31.05.12,
e)None Of the Above
14) A WC limit with a bank was sanctioned with collateral & guarantee, now
this being a MSE unit, bank wants to take guarantee cover of CGTMSE. The right
advice is-(Ans:c)
a) Since the WC limit is with collateral & guarantee, no cover will be given.
b) For Cover, close the limit and take a fresh proposal.
c) Return the collateral & guarantee to take the cover at the time of renewal
d) Since the a/c is running regular, no need to return collateral & guarantee for
taking cover
15) The maximum period of guarantee cover for a WC limit alone is___ & for a
composite loan is___(Ans:c)
a) 7 yrs& 9 yrs
b) 5 yrs& 7 yrs
c) 5 yrs& loan termination date of TL
d) 7 yrs& loan termination date.
16) Expansion of MSME is ? (Ans:a)
a) Micro, Small and Medium Enterprises
b) Manufacturing, Service & Mining Enterprises
c) Maximization of Security, Money & Efficiency
d) It stands for Medium, Small & Micro Enterprises.
17) How are the enterprises under MSME classified? (Ans:a)
a) in two categories basing on the activity i.e. Manufacturing and Service.
b) in two categories basing on the activity i.e. Mining and Service.
c) in three categories i.e. Mining, Manufacturing & Service.
d) in two categories- Manufacturing & Mining.
18) What is Micro Enterprises (Service)? (Ans:a)
a) A micro enterprise (service) is an enterprise .where the investment in

equipment does not exceed Rs.10 lakh.
b) A micro enterprise (service) is an enterprise, where the investment in

equipment does not exceed Rs.25 lakh.
c) An enterprises having working capital sanctioned upto 10 lakh.
d) An enterprises having turnover of Rs.10 lakh.
19) What is Small Enterprises-Manufacturing? (Ans:a)
a) A small enterprise (manufacturing) is an enterprise where the investment in

plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore.
b) A small enterprise (manufacturing) is an enterprise where the investment in

plant and machinery does not exceed Rs. 5 crore.
c) A small enterprise (manufacturing) is an enterprise having been sanctioned

a loan of Rs. 5 crore
d) A small enterprise (manufacturing) is an enterprise having reached a

turnover of Rs. 5 crore.
20) What is Small Enterprises (Service)? (Ans:a)
a) A small enterprise (service) is an enterprise where the investment in

equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore.
b) A small enterprise (service) is an enterprise where the investment in

equipment does not exceed Rs. 2 crore.
c) A small enterprise (service) is an enterprise which has been sanctioned a

loan of Rs. 2 crore.
d) A small enterprise (service) is an enterprise having touched a turnover of

Rs. 2 crore.
21) What is Medium Enterprises (Service)? (Ans:a)
a) A medium enterprise (service) is an enterprise where the investment in

equipment is more than Rs. 2 crore but does not exceed Rs.5 crore.
b) A medium enterprise (manufacturing) is an enterprise where the investment

in plant and machinery does not exceed Rs.10 crore.
c) A medium enterprise (manufacturing) is an enterprise having a turnover of

Rs. 10 crore. d) A medium enterprise (manufacturing) is an enterprise where the
turnover is Rs. 10 crore.
22) What is ceiling for sanction of Collateral Free loans to Micro and Small
Enterprises? (Ans:a)
a) Loans upto Rs.10 lakhs under Micro and small enterprises sector are to be
sanctioned compulsorily without collateral security and third party guarantee.
b) Loans upto Rs.25 lakhs under Micro and small enterprises are eligible for
sanction without collateral security and third party guarantee.
c) No such ceiling, all advances to MSE should be collateral free.
d) he ceiling amount should by individual bank.
23) What is CLCSS? (Ans:a)
a)Credit Linked Capital Subsidy Scheme for Technology Up gradation of the

Micro and Small enterprises (Manufacturing).
b) Capital linked credit subsidy scheme for Technology Up gradation of the

Micro and Small enterprises (Manufacturing).
c) Competence Linked Credit Subsidy Scheme for MSME
d) Credit Linked Computerized Subsidy Scheme for MSME.
24) What are types of the units covered under CLCSS scheme? (Ans:d)
a) Units going for up gradation with state of the art technology with expansion.
b) Units going for up gradation with state of the art technology without
expansion.
c) New units setting up facilities only with the appropriate and proven
technology.
d) All the above.
25) Which of the following is not reckoned in priority sector. (Ans:b)
a) All are under Priority sector if the activity falls under service or
manufacturing sector.
b) Medium enterprises are not reckoned under priority sector.
c) All are under Priority sector if the amount of loan sanctioned is uptoRs. 1
crore.
d) The criteria of categorization is the availability of CGTMSE cover.
26) Which among the following is not a condition for taking cover under
CGTMSE
(Ans:d)
a) rate of interest on loan should not be more than BR+4
b) there is no collateral security taken in loan
c) there is no 3rd party guarantee taken in loan
d) There is no personal guarantee taken either.
27) Which of the following activity is covered under CGTMSE (Ans:d)
a) Self Help Group
b) Education & Training Institutes
c) Retail Trade
d) Repairing service.
e) All .
28) Which of the following is not a Professional person- (Ans:a)
a) Shop keeper
b) Lawyer
c) CA
d) Medical practitioner.
29) There are various causes for high incidence of sickness amongst the SMEs.
Which of the following is not an internal cause of sickness of SMEs? (Ans:b)
a) Dishonesty of management
b) Competition from big concerns
c) labor unrest
d) Poor product quality
30) Which of the following states SME?s importance for economic development
of the country- (Ans:c)
a) They pay high taxes
b) They use labor efficiently
c) They have high potential for employment generation
d) They require much finance.
31) Appraisal of credit proposals of SME by the bank often becomes difficult
because of the following-(Ans:b)
a) Banks do not have enough manpower
b) SME?s often do not keep elaborate & systematic financial records
c) Appraisal required detail like big enterprises.
d) Bank staff considers PS lending as undesirable
32) Sickness in an SME is proceeded by a few symptoms in the conduct of bank

accounts- which of the following is not such a symptom-(Ans:a)
a) Credit in the CC a/c is equal to sales
b) Frequent dishonor of cheques.
c) Frequent request of excess drawings
d) Nonpayment of term loan installment.
33) For a women entrepreneur the maximum coverage of CGTMSE will be

available for a loan of Rs. 50 lakh upto-(Ans:b)
a) Rs. 37.50 lakh
b) Rs. 40 lakh
c) Rs. 45 lakh
d) Rs. 32.50 lakh.
34) Which of the following activity will not be covered under CGTMSE scheme(Ans:b)
a) Manufacturing of a transformer
b) Selling of a transformer
c) Repairing of a transformer
d) Packing & Transportation of Transformer.
35) Given that the loan application is complete in all respect, wrong time frame
for sanction of loan to a micro & small enterprises is-(Ans:b)
a) 2 weeks for a loan of Rs. 25000/-
b) 1 month for a loan of Rs.1 lakh & above.
c) all loan applications upto a credit limit of Rs 2 lacs should be disposed off
within two weeks
d) all loan applications upto a credit limit of Rs 5 lacs should be disposed off
within four weeks .
36) Within MSE, micro enterprise must get-(Ans:c)
a) 40% of total credit to small enterprises
b) 60% of ANBC or CEOBE whichever is higher
c) 60% of credit to MSE sector
d) 40% of ANBC or CEOBE whichever is higher.
37) Quantum of credit facility that can be covered under the Scheme
is(Ans:e)
a) Fund based credit up to Rs. 100.00 lakh in case no non fund credit is there.
b) Non fund based credit up to Rs. 100.00 lakh in case no fund based credit is
there.
c) Both fund based & non fund based credit up to Rs.100.00 lakh.
d) Credit limit may be more than 100.00 lakh but quantum of credit cover is up
to 100.00 lakh
e)All of the above.
38) Charge on LIC/NSC/BOOKDEBTS(Ans:c)
a)Mortgage
b)Pledge
c) Assignment
d)Hypothecation
39) Indicate which one is true in case of CGTMSE cover(Ans:b)
a) In case of existing units, additional credit facilities in the form of term loan
or renewal of working capital facilities cannot be covered under CGTMSE as and
when the facilities are extended.
b) In case of existing units, additional credit facilities in the form of term loan
or renewal of working capital facilities can be covered under CGTMSE as and
when the facilities are extended.
c) CGTMSE cover is available only in case of new units.
d) CGTMSE cover is available only in case of new facility
40)Under CGTMSE Scheme, any third party guarantee obtained for the credit
facilities will make them ineligible for guarantee cover. Please indicate which one
of the following is a third party guarantee.(Ans:e)
a) Guarantee given by the proprietor voluntarily in case of Sole proprietorship

firm
b) Guarantee given by partners voluntarily in case of partnership firm.
c) Guarantee given by directors voluntarily in case of Pvt Ltd Company
d) Guarantee given by karta in case of HUF.
e)Guarantee given by the beneficiaries of a trust.
41) CIBIL as a credit information bureau caters to(Ans:c)
a) Consumer segment
b) Commercial segment
c) Both commercial and consumer segments
d) Retail segments.
42) An asset is to be classified as doubtful, if it has remained in the substandard category for two years.(Ans:a)
a) True
b) False
43) Generally, all the facilities granted by the branch to a borrower will have to
be treated as NPA and not the particular facility which has become irregular.
(Ans:a)
a) True
b) False
44) When will the guarantee cover commence for the eligible credit facility?
(Ans:c)
a) From the date of sanction of loan
b) From the date of receipt of guarantee cover by the trust.
c) From the date of payment of guarantee fee to the trust.
d) From the date on which guarantee fee proceeds are credited to bank
account of the Trust.
45) The manufacturing activity is categorized in Micro, Small or Medium

enterprises depend upon the investment in Plant & machinery. The amount of
investment in Plant & machinery will be reckoned as-(Ans:d)
a) The depreciated value of Plant & machinery as per the Balance sheet.
b)The present market value of Plant & machinery.
c)The purchase price of Plant & machinery for that enterprise.
d) The original purchase price of Plant & machinery whether owned by first
holder or second holder.
46) CGTMSE cover is not available against the following bank finance.(Ans:d)
a) To a unit processing potato into chips.
b) To a doctor setting up clinic without ambulance.
c)To a Small Road Transport operator.
d) To a readymade garment seller having obtained valid license to set up

tailoring unit.
47) Guarantee Fee is required to be paid up to,(Ans:d)
a)The date of NPA.
b) The date of intimating to the Trust online having the a/c slipped to NPA
c)The date of confirmation from the Trust having noted the date of NPA.
d) The date of settlement of first installment of claim.
48) Nomination is not applicable to (Ans:d)
a) Partnership firm
b) Company,
c)Trust accounts.
d) All the above
49) Buy now and pay later is the slogan for the following card:(Ans:a)
a) Credit Card
b) Debit Card
c) Bharat Card
d) Kissan Credit card
50) No due certificate waived for loans to small and marginal farmers
upto(Ans:a)
a)Rs.50,000/-
b) Rs.1,00,000/-
c)Rs.1,50,000/-
d)Rs.1,25,000/-
??????????????????????
IBEU AP/AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT

??????????????????????
??????????????????????
??????????????????????
Objective Questions for clerical to Officer Promotion Test.
??????????????????????
IBEU(AP) / AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT
??????????????????????
??????????????????????
1)Levy of Swachh Bharat Cess (SBC) with effect from which date?(Ans:a)
a)15.112015
b)15.10.2015
c)15.12.2015
d)15.09.2015
2)Rate at which Swachh Bharat Cess is to be levied?(Ans:a)
a)0.50% on value of Taxable services in addition to the applicable service tax

of 14%
b)0.75% on the value of taxable services
c)1.00% on the value of taxable services
d)0.25% on the value of taxable services in addition to the applicable service

tax of 14%
3)Mobile number for Ind Mobile Banking(Ans:a)
a)94443 94443
4)What are the services available in Ind Mobile Banking(Ans:f)
a) Customer can do the balance enquiry.
b) Customer can see their last 3 transactions.
c) Customer can enquire about the issued/deposited cheque status..
d) Customer will get mobile alert if Account is Debited/ Credited for Minimum of
Rs.5000.
e) Customer will get mobile alert if there is a cheque bounce in their account
f)All the above
5)What are the charges bank will collect for Ind Mobile Banking
facility(Ans:a)
a)No charges
6)For Balance enquiry in Ind Mobile Banking what is the SMS format?(Ans:a)
a)BALAVL <Ac no> <MPIN>
7)For last 3 Transactions in Ind Mobile Banking what is the SMS

formet(Ans:a)
a)LATRAN <Ano> <MPIN>
8) A software firm having TNW Rs. 10 lakhs has approached your branch for
sanction of CC limit of Rs. 25 lakhs. Which method of assessment should be
applied?(Ans:b)
a) Traditional MPBF Method
b) Cash Budget Method
c) Turnover Over
d) Any of these
9) SARFAESI act is applicable on any asset in any of the following NPA

A/cs(Ans:b)
a) Housing loan of Rs.20 lacs disbursed , present O/s Rs.3 lacs
b) Tractor Loan of Rs. 4 lacs with hypothecation of tractor & mortgage on

agriculture land
c) Ind Mortgage loan of Rs.2 lacs, present O/s Rs. 95000/-.
d) None of these
10) The lock in period for invocation of guarantee under CGTMSE is ------months. (Ans:a)
a) 18
b) 24
c) 12
d) no lock in period
11) Long Term Source ? Long Term Use is(Ans:a)
a) Net Working Capital
b) Gross Working Capital
c) Diverted Fund
d) Maximum Permissible Bank Finance
12) Second Method of lending (under Tandon Commitee Report)

means(Ans:b)
(a)25% margin of Working Capital Gap
(b)25% margin of current assets
(c)20% margin of all assets excluding export credit
(d)20% of Projected Annual Turnover
13) Financial Statements of the company are(Ans:c)
a)Statement showing Stock position of the Company.
b)Statement required to be submitted by the borrowers to Reserve Bank of

India)
c)Profit and Loss Account and Balance Sheet of the Company.
d) Statements such as QIS and MSOD)
14) When profit is ploughed back in to the business(Ans:b)
a)current assets will increase
b) Net worth will increase
c) Employees will get bonus
15)Submission of control returns are (Ans:a)
a)Mandatory
b) Optional
c) Can be submitted when ZO reminds
16) Stock turn over ratio is(Ans:a)
a)average stock to cost of sales
b)sales to average stock
c)sale to finished goods
17) Our present Base Rate is (Ans:a)
a)9.65%
b) 11.25%
c) 10.25%
18) Reserve created out of profit is called as (Ans:a)
a)General reserve
b) Revenue reserve
c)Revaluation reserve
19) What will be TNW if authorized capital is Rs. 10 lakhs, Subscribed capital is
Rs 5 lakhs, Fixed assets Rs. 8.5 lakhs, TL Rs. 2.40 lakhs, CL Rs. 7.80 lakhs,
previous year loss carried over is Rs.0.40 lakhs, current year loss Rs. 27000,
goodwill Rs. 0.30 lakhs and depreciation Rs.24,000 (Ans:c)
a)Rs. 460000
b) Rs. 473000
c) Rs. 403000
d) Rs. 379000
20) A bank has a right called? to club two accounts( one of which has debit
balance and another has credit balance) in the same capacity, of
customer:(Ans:a)
a) Right of set off
b)right of adjustment
c)right of lien
d) right of appropriation
e) all the above
21)A borrowed Rs.20000 from your branch which he is not repaying and the
loan has become time barred due to non acknowledgment and non-payment. A
has a saving bank deposit in his name showing credit balance) Can the bank
exercise is right of set off for this time barred debt?(Ans:c)
a)right is not available as the debt has become time barred
b)right is available for any debt whether time barred or a live
c)right is available for legally due to debt whether time barred or not
d)right can be exercised with the permission of a court of law
e)rights can be available if depositor agrees
22)Mohan raised a loan against an FD in his name which he has repaid) A clean
overdraft is also outstanding for which he has shown his inability to pay:(Ans:a)
a)the bank can exercise its right of set off against FD after maturity
b)the bank cannot exercise its lien
c)the bank will have to obtain permission from competent court
d)right would be exercised only if FDR is in possession of the ban
e)none of the above
23)Rajan raised a loan and Harish was his guarantor and loan has become due,
for payment which Rajan fails to pay. Bank had to recall the loan due to this.
Harish maintains a SB account, with another branch of the bank along with a
term deposit, which is yet to mature: (Ans:b)
a)the bank cannot exercise right of set-off against Harish?s account
b)in case loan is recalled from Harish, the right of set-off can be exercised on
saving bank immediately and on FDR, when it falls due
c)intervention of the court required
d)loan recall is not a necessary condition
e)none of the above
24)Right of set-off is exercisable, where the relationship is of:(Ans:c)
a)bailor and bailee
b)landlord and tenant
c)debtor/creditor & creditor / debtor
d)principal and agent
e)any of the above
25)X is having loan account duly guarantee byMr. And Mrs. Y. They are having
an FDR for Rs.40,000/- with maturity value of Rs.57010/-. X defaulted in
repayment of Loan and bank on maturity value of FDR and credited the balance
to SB MR. Y and Mrs.Y. Mr. and Mrs. Y objected to this adjustment since the loan
is time barred)(Ans:c)
a)bank could not do so. Hence entry should be reversed
b)bank could not do so and if party requests, entry should be reversed
c)bank had right of set off which it has correctly used (presuming that notice
had been given for doing so)
d)bank had lien over the FDR due to which bank action is correct
e)bank is liable for the loss
26)For which among the following, the banker can exercise its right of set-off in
case of need:(Ans:d)
a)debts which are to arise in future
b)contingent debts of the customer
c)fund deposited by the debtor for a specific purpose
d)for due and lawful debts
e)none of the above
27)In case the documents have been signed by all the partners in both the
capacities, individually and as well as partners, for a loan to the firm, on the
individual accounts of the partners, the bank can exercise:(Ans:a)
a)its right of set off
b)cannot exercise this right
c)with consent of partner, it can
d)exercise right of lien
e)none of the above
28)On the request of Mr.Dibang, International Bank had issued a bank

guarantee of Rs.5 lakhs on the collateral security of a fixed deposit of Rs.3lakhs
prepared by the borrower exclusively for that purpose) Subsequently the
borrower was given an overdraft of Rs.0.50 lakhs. The period of guarantee has
expired and no notice of invocation has been received from the proceeds of the
fixed deposit for repayment of the overdraft, which the borrower is not
repaying:(Ans:c)
a)bank can exercise right of lien on the fixed deposit
b)bank can exercise right of set off on the fixed deposit
c)bank cannot exercise the right of set off as the fixed deposit was prepared for
a specific transaction i.e) to secure the guarantee
d)bank can exercise its right of lien or right of set off on the fixed deposit.
e)a and d
29)XYZ and ABC are two firms having the same partners in both the
partnership firms. One firm is having debit balance and other firm is having
credit balance in their accounts. Whether bank can exercise right of set off in this
case:(Ans:c)
a)being different firms, this is not possible
b)the name being different, this is not possible
c)partners being same, this can be done
d)bank will need permission from a court of law before exercising the right
e)none of the above
30)Bank allowed temporary overdraft for Rs.10000 to Ram Singh which he is

not repaying. On which of the following accounts the bank has the right of setoff, available:(Ans:c)
a)joint accoint ram singh & wife with credit balance
b)Ram Singh & Co, a partnership account.
c)FDR of Rs.10000 maturing after 2 months in Ram Singh ?s name
d)None of the above
31)The right of set-off a banker has been conferred on the banks in which of
the following?(Ans:b)
a)Negotiable Instruments Act
b)Indian Contract Act
c)RBI Act
d)d) Civil Procedure Code
e)Criminal Procedure Code
32)Mr. D is having one overdraft account with us. He is also having three other
accounts with us, (namely) his personal SB Account, Joint Account with his wife
and one u/gship account with his son. Bank can use right of set off in which of
these accounts.(Ans:e)
a)right is available for all the three accounts
b)right available in the joint account and SB account
c)right available in u/gship account and personal SB account
d)right available in u/gship account and Joint account
e)right available in personal SB account
33)Model Bank is maintaining an overdraft as well as a term deposit in the

name of Mr.Dheeraj. Due to non payment of the overdraft by the borrower, the
bank wants to use its right of set-off.(Ans:c)
a)the right could be exercised by the bank irrespective of the fact whether the
deposit has matured or not
b)the right could be exercised only if the customer has given a notice for
withdrawals of the deposit
c)the right could be exercised of the bank only when it matures
d)the right cannot be exercised as right is not available in case of those

deposits which are to become due in future
e)none of the above
34)Govind raised a loan and he deposited cheque for collection and credit to
his saving bank account;(Ans:a)
a)in this case the banker?s right of set off on the amount of cheque so
collected would not be effective
b)in this case the banker?s right set-off on the amount of cheque so collected
would not be effective
c)in this case the banker?s right of set off on the amount of cheque so
collected permission from court to be obtained
d)consent of the customer will be obtained
e)none of the above
35)Shant and Pant maintain a current account at your branch in their joint
names. It is also enjoy an overdraft limit of Rs.55,000 and the account shows a
debt balance of Rs. 36400 presently. The loan documents which were executed
by them are going to expire next month as they have not renewed the same)
They also refused to sign the usual balance confirmation letter. The branch
manger desired to set-off the said overdraft against a savings account
maintained by Pant against a savings account maintained by Pant which shows a
credit balance of Rs.64,600. In this case:(Ans:b)
a)The right of set-off is not available to the bank as the accounts are not in the
same right.
b)The bank can exercise the right of set-off by adjusting the overdraft in the
joint account to the debit of Pant?s saving account.
c)Pant is liable to pay only of the overdraft
d)None of the above
36)Popular Bank sanctioned a loan in the name of B)which he had not been
repaying. The bank has come to know that B is having an FDR account with
National Bank in the same city. At the time of maturity of the term deposit, letter
is received by National Bank from Popular Bank to remit money to credit in the
loan account:(Ans:d)
a)the amount would be remitted by the National Bank to popular Bank
b)if indemnity bond is executed by Popular Bank, the amount can be remitted
c)if consent is given by the depositor and his nominee, the amount can be
remitted
d)the amount cannot be remitted, as right of set-off is not available to

Popular Bank
e)none of the above
37)Before exercising its right of set-off, a banker is to see that:(Ans:d)
a)the amount of loan must be certain and due for payment
b)both the accounts must be in the same capacity
c)there should not be contract to the contrary
d)all the above
38)Right of set off is considered to be a ?Statutory Right? which of the

following Acts, defines it:(Ans:d)
a) BR Act Section 32
b)RBI Act Section 35
c)Indian Contract Act Section 24
39).X has joint ?former or survivor? account XY with his wife Y. X has an
overdraft account, where he is not paying dues. Can you exercise right of set-off
as a banker:(Ans:a)
a)in joint account, it is not possible
b)it is possible as the account is former or survivor
c)Possible with consent of Y
d)None of the above
40)Your branch had allowed an overdraft of Rs.8600 to M/s. Chandgi Ram & Co.
with Mr.Ram Lal, Mr.Sham Lal and Shekar as partners. The overdraft remains
unadjusted despite several demand notices served on the firm. It is notices

served on the fir. It is noticed that Mr.Shekar also maintains a savings account at
the branch showing a credit balance of Rs.9365. In this case)(Ans:a)
a)The bank can exercise right of set-off and adjust the overdraft in firm?s
account to the debit of partner?s personal account.
b)The bank cannot exercise the right of set-off as the accounts are in different
names
c)The bank can exercise the right of set off provided the letter of set-off was
obtained from the partners at the time of allowing overdraft to the firm
d)The bank recover 1/3rdof the overdraft to the debit of the savings account
of Mr.Shekar and the remaining balance can be recovered and from other
partners proportionately.
41)Where loan is in the name of A and deposit in ABC firm where A is a partner
right of set off cannot be exercised) (Ans:b)
a)True
b)False
42).Where loan is in the name of A and deposit in A as trustee right of set off
can be exercised.(Ans:b)
a)True
b)False
43)Where loan is in the name of A and deposit in the name M under

guardianship of A right of set off cannot be exercised(Ans:a)
a)True
b)False
44) The Karta Mr.Ram Avtar of M/s. Rama Kant & Sons, an HUF concern
approaches your bank for sanction of an overdraft against the mortgage of their
business showroom. But the coparceners are not available in the town. How
would you dispose of their request?(Ans:a)
a)the loan can be raised by Karta for the purpose of family business by
mortgaging the property relating to the HUF
b)the loan documents will be valid only when all the coparceners also sign
c)if there is any minor, the guardian would sign on his behalf
d)the loan request cannot be accepted as there is apprehension of dispute in

case HUF
e)b and c
45)Local Area Bank has opened a current account in the name of an HUF which
is operated by the Karta) Subsequently the Karta gives mandate in favour of an
employee of the HUF firm to operate the account for a limited amount. Two coparcerners of the HUF have sent a notice to the bank not to permit the employee
to operate the account as the Karta has not consulted them about has not
consulted them about the appointment:(Ans:d)
a)the employee will not be allowed to operate the account in the light of this
notice
b)the employee will not be allowed to operate the account in the light of
apparent dispute amongst the family members
c)the employee will not be allowed to operate the account unless another
letter is received from the Karta
d)the employee will be allowed to operate the account as per direction already
given by Karta, since he has absolute authorityto appoint an agent
e)none of the above
46)The liability of a minor co-parcener in an HUF, for the acts of a Karta

is:(Ans:c)
a) unlimited
b)nil
c)to the extent of his share in t he family property
d) 50% of the loss as per his share
e) none of the above
47)One of the following is not true in respect of Joint Hindu Family. Which one it
is?(Ans:b)
a)Karta only has the authority to operate the bank account
b)Only male member born in the family becomes a co-parcener
c)Only Karta has the authority to incur debt
d)On death of a co-parcerner the HUF is not dissolved
e)Coparceners can be allowed operations, if authorized by Karta.
48)Ravi Kumar and Sons, an HUF, maintain a current account. The Karta of the
HUF dies and leaves behind three family members i.e) his wife and two minor
sons. How will you deal with the account?(Ans:c)
a)Bank will stop operations in the account
b)Account can be operated by minor son being male member
c)Account would be operated by window being guardian of Karta on behalf of

Karta (the eldest son)
d)Account can be operated by widow being guardian of Karta on behalf of

Karta (the sons)
e)None of the above
49)Ram Lal and Sons, an HUF concern, is having current account operated by
Karta, who dies:(Ans:b)
a)Operations, will be stopped and amount paid to legal heir
b)Eldest among surviving co-oarcebers would become Karta automatically and

operate the account
c)HUF would be dissolved
d)If eldest male member is minor no Karta will be there
e)None of the above
50)Who among the following are considered as part of a Hindu Undivided

Family:(Ans:d)
a)only the male members of the family
b)only the major male members of the family
c)the male members of the family and relatives
d)the person lineally gescended from a common ancestor
e)any of the above
????????????????
IBEU (AP) / AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT
??????????????????????
??????????????????????
OBJECTIVE TYPE QUESTIONS FOR CLERICAL TO OFFICER PROMOTION TEST
??????????????????????
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1.The physical parts of a computer are known as: (Ans:b)
a)software
b)hardware
c)shareware
d)fixed-ware
e)digital?ware
2.Which of the following represents the use of computer in the area of

engineering:(Ans:a)
a)CAD
b)CBT
c)VSAT
d)DTP
e)all the above
3.Which of the following cannot be treated as part of the computer hard

ware:(Ans:c)
a)mother board
b)cards
c)memory
d)prots
e)power
4.Which of the following is a type of an operating system of computer:(Ans:e)
a)batch processing system
b)multiprogramming operating system
c)time sharing system
d)a and b
e)a to c
5.The software that consists of all the programs, languages and documents
supplied by the manufacturer of the computer is called:(Ans:b)
a)application software
b)system software
c)utility software
d)a and c
e)b and c
6.The application software is the software that is:(Ans:c)
a)supplied by the computer manufacture
b)used by the computer manufacture
c)developed by the user for specific functions
d)developed by the manufacturer for manufacturing purpose
e)c and d
7. Which type of the following software is used by a person for preparation of

documents:(Ans:b)
a)data processor
b)word processor
c)complier
d)multimedia
e)b and c
8.Which of the following is not a part of the ATM hard ware:(Ans:e)
a)printer
b)dispenser
c)card reader
d)processor
e)b and c
9.The term B2B in the context of trade is used in connection with:(Ans:b)
a)banking transactions
b)e-commerce transactions
c)education facilities
d)social work
e)all the above
10.Which of the following is not a popular electronic payment product:(Ans:e)
a)credit card
b)debit card
c)ATM card
d)electronic clearing service
e)none of the above
11.Under RBI EFT system, what is the maximum limit of individual transaction
presently:(Ans:e)
a)Rs.2lack
b)Rs.20lack
c)Rs.200lack
d)Rs.2000lack
e)no ceiling
12.RBI?s EFT system introduced during 1994 was initially introduced on pilot
basis between:(Ans:c)
a)Kolkata & Delhi
b)Delhi and Mumbai
c)Mumbai & Chennai
d)Chennai and Kolkata
e)Delhi and Kolkata
13.Which of the following services is not provided under tele-banking service

by banks:(Ans:d)
a)information about balance
b)information about limited no
c)issue of cheque books
d)request for sanction of overdraft
e)request for issue of demand drafts
14.Digital signature is a signature:(Ans:b)
a)that is made in digital codes
b)in electronic form attached to electronic record
c)in electrical form enclosed to each electronic transaction
d)a and b
e)a and c
15.Which of the following Act gives legal recognition to a digital signature:

(Ans:c)
a)Negotiable Instruments Act
b)Income Tax Act
c)Information Technology Act
d)Indian Evidence Act
e)General Clauses Act
16.Which of the following is not an advantage of a digital signature:(Ans:e)
a)identification of the origin of the message
b)ensuring integrity of the message
c)verification of the identity of the sender
d)a and b
e)a to c
17.When a person speaks into a microphone, the technology that coverts the
sound waves into an electronic signal and passes it to a computer, is
called:(Ans:c)
a)speech technology
b)voice technology
c)speech recognition technology
d)communication technology
e)information technology
18.The term VSAT stands for which of the following:(Ans:c)
a)variable small aperture terminal
b)very small aperture terminal
c)variety of small aperture terminals
d)variety of small aperture terminals
e)none of the above
19. For which of the following purposes, the VSAT network does not find
application:(Ans:e)
a)electronic fund clearing
b)video conferencing
c)electronic funds transfer
d)reporting of govt. transactions
e)none of the above
20.The frauds and other kind of crimes that happen on the internet network
are called:(Ans:c)
a)internet frauds
b)internet crimes
c)cyber crimes
d)electronic frauds
e)all the above
21.Which of the following incident cannot be treated as part of the cyber crime
activity:(Ans:d)
a)deciphering domain name
b)mis-configuring a web site
c)misuing a credit card
d)transmitting data from one part of the globe to another
e)using the network for dug trafficking
22.A computer program which could infect the other programs or data is
called:(Ans:d)
a)system software
b)application software
c)cyber crime
d)virus
e)computer fraud
23.Which of the following is the method that could provide protection against
computer virus:(Ans:e)
a)use of vaccine program
b)ban on use of unauthorized soft ware
c)non-use of floppy
d)a and c
e)e. a to c
24.The firewall technology is used in connection with:(Ans:e)
a)hardware
b)software safety
c)data safety
d)b and c
e)a to c
25.The process of transformation of a message into an incomprehensible data

through use of mathematical algorithms is called:(Ans:b)
a)deciphering
b)encryption
c)decryption
d)coding
e)decoding.
26.The precaution of testing the computer security procedures and

identification of lapses before the banking operation is put to risk is known as
(Ans:c)
a)computer configuring
b)deciphering
c)computer audit
d)computer repair
e)all the above
27.Which of the following functions is not part of the computer audit:(Ans:e)
a)use of properly tested software
b)generation and checking of audit trails
c)to check whether programs are manipulated by any persons
d)a and b
e)e. none of the above
28.Which of the following Acts has not been amended by Information

Technology Act 1999 for the purpose of legal recognition of electronic
records:(Ans:e)
a)Indian Evidence Act
b)RBI Act
c)Indian Penal Code
d)Bankers? Book Evidence Act
e)none of the above
29.The committee that is associated with EFT system of RBI:(Ans:c)
a)Rangarajan Committee
b)Saraf Committee
c)Sheer Committee
d)Narasimham Committee
e)all the above
30.The first committee (year 1985) that gave its recommendations relating to
mechanization of banking system:(Ans:a)
a)Ranagarajan Committee
b)Saraf Committee
c)Shere Committee
d)Narasimham Committee
e)All the above
31.The committee that gave its recommendation for drawing a perspective

plan of computerization for the period 1990-94:(Ans:c)
a)Shere Committee
b)Narasimham Committee
c)Rangarajan Committee
d)Saraf Committee
32.The committee that recommended the introduction of electronic clearing

services:(Ans:b)
b)Saraf Committee
c)Shere Committee
d)Kapoor Committee
e)none of the above
33.The committee that suggested the cheque truncation system for inter-bank
transactions:(Ans:d)
b)Shere Committee
c)Vasudevan Committee
d)Saraf Committee
e)None of the above
34.1998 Committee on Technology upgradation in Banking Sector is known as:

(Ans:b)
a)Narasimham Committee
b)Vasudevan Committee
c)Shere Committee
d)Saraf Committee
e)Kapoor Committee
35.The software that is used for a centralized environment in banking

operations is called:(Ans:c)
a)central branch solutions
b)core banking situations
c)centralized banking situations
d)d. centralized business solutions
e)a and c
36.Which of the following kinds of environment is provided through Centralized

Banking Solution software:(Ans:e)
a)any time banking
b)any where banking
c)bank customer instead of branch customer
d)a and b
e)a to c
37.The electronic process that makes simultaneous use of sound, video and
text:(Ans:d)
a)animation
b)digitalization
c)multi-function device
d)multimedia
e)virtual reality
38.The part of the computer that makes use of primary memory:(Ans:b)
a)storage unit
b)central processing unit
c)computer user
d)computer user
e)all the above
39.Which of the following makes use of the artificial intelligence:(Ans:b)
a)user of the computers
b)computer machine
c)operating systems
d)application systems
e)all the above.
40.The resolution of the computer screen is determined by which of the

following:(Ans:c)
a)the colour
b)the memory
c)the pixels
d)the processor speed
e)b and c
41.Which command is used for moving in the directory previous to the one in
use in DOS:(Ans:c)
a)MD
b)DM
c)CD
d)LD
e)ND
42.The network for common data communication for banks and FIs launched
by RBI:(Ans:a)
a)BANKNET
b)INFINET
c)NICENET
d)SWIFT
e)INTERNET
43.Which of the following is the instrument of payment called Plastic Money

(Ans:c)
a)identity card
b)plastic card
c)debit card
d)greeting card
e)banker?s cheque
44.Which of the following is the measurement unit for processor

speed:(Ans:b)
a)megabytes
b)megahertz
c)mega characters
d)nano seconds
e)a and b
45.Which of the following is not part of the online feature in

computerization:(Ans:d)
a)files being on line all the times
b)random data input
c)user department having direct access
d)computer on standalone basis
e)all the above
46.The centralized processing system in a bank makes use of which of the

following:(Ans:c)
a)stand alone computers
b)shared net working
c)computers connected by a communication network
d)computers connected by internet
e)none of the above
47.The customer is identified by the software by his personal ID and Password/key word for providing him non-cash services in which of the
following:(Ans:c)
a)corporate banking
b)internet
c)tele-banking
d)ATM System
e)all the above
48.Through which of the following systems, the customer could leave the
message for the concerned desk which the person handling the desk could
provide later on:(Ans:c)
a)tele banking
b)b. internet banking
c)voice mail facility
d)d. ATM facility
e)e. mobile banking
49.Which of the following can be considered as part of the batch processing

system:(Ans:b)
a)RTGS
b)salary payment rolls
c)airlines reservation
d)railway reservations
e)all the above
50.In information technology the word ?protocol? stands for:(Ans:d)
a)collection of data
b)data output
c)data input
d)set of rules & regulations
e)set of programming.
??????????????????????
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??????????????????????
????????????????????
IBEU (AP) / AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT.
?????????
OBJECTIVE QUESTIONS FOR CLERICAL TO OFFICER PROMOTION TEST ON
03.01.2016.
????????????????????
1.Which of following accounts are necessarily operated only by using
withdrawal slips since no cheque books could be issued to these accounts as
per the rules: (Ans:f)
a)An account opened by a minor to be operated by him (provided he has

completed the age of 14 and has powers of understanding and discretion)
b)An account in the name of an illiterate person (who should come personally
to the Bank with the pass book)
c)An account which does not meet the required minimum balance norms for a
cheque book facility.
d)A Savings Bank account which meets the required minimum balance for a
cheque book facility, but the account holder prefers not to have a cheque book
and draws money through withdrawal slip only.
e)The ?No frill? Savings Bank accounts (the scheme itself does not provide the
account holder to have a cheque book)
1)All the above.
2.The use of withdrawal slips is restricted to Rs.10,000 for cash transactions

and Rs.20,000 for transfer transactions subject to the extant guidelines on their
use. (Ans:a)
a)True
b)False
3.the single transaction and the aggregate of transactions that can be made
by an user PER DAY is restricted to _________ per CIF, irrespective of the number
of accounts linked to the CIF;(Ans:a)
a)Rs.50000
b)Rs.25000
c)Rs.100000
d)Rs.200000
4. What is the relationship between the Bank and Overdraft Customer where the
account is showing credit balance? (Ans:d)
a) Creditor & Debtor
b) Principle & Agent
c) Trustee & Beneficiary
d) Debtor & Creditor
5. What is the maximum period for which FCNR deposit can be opened? (Ans:d)
a) One Year
b) Two Years
c) Three Years
d) Five Years
e) Ten Years
6. Which of the following can?t be a nominee? (Ans:d)
a) Illiterate Person
b) Minor
c) NRI
d) HUF
7. In case of dishonour of cheques on financial grounds, the holder is required to

issue notice to the drawer within _____ days to claim remedy under section 138
of NI Act (Ans:b)
a) 7 Days
b) 30 Days
c) One Year
d) Three Years
8. National Payment Corporation of India (NCPI) has setup payment network to

enable the member banks to issue Domestic Payment Cards with a brand............
(Ans:d)
a) Visa Card
b) Master Card
c) Prepaid Card
d) Rupay
e) Travel Card
9. Permanent Account Number (PAN) is mandatory for (Ans:e)
a) Bank transactions (cash) of Rs.50000/- & above
b) Purchase and sale of shares / debentures / bonds of Rs.50000/- & above
c) Purchase and sale of immovable property where the value of the property is
Rs.5 lakh & above
d) a & c
e) All
10. High Debt Service Coverage Ratio (DSCR) indicates (Ans:b)
a) Unable to meet the installment obligations
b) Able to meet payment of installments comfortably
c) Liquidity problem
d) a & c
11. X Company approached the Bank for sanction of working capital limit of
Rs.800 lakhs and the Current Ratio of the company is 1.15:1. What is the course
available to the branch? (Ans:d)
a) Proposal can be considered as the current ratio is acceptable
b) Proposal can be declined since current ratio is below 1.33:1
c) Advise the company to increase capital to bring the current ratio to 1.33:1
d) Proposal is to be referred to next Higher Authority for sanction
12. Which of the following statement is NOTtrue with regard to Capital Gains
Deposit Scheme? (Ans:c)
a) Income Tax Assesses who are eligible for exemption under section 54 of the IT
Act are alone can open account with Banks
b) Accounts can be opened under Savings, Fixed and Term Deposits
c) Cheque book can be issued to eligible accounts.
d) No lien or deposit loan is allowed against such deposits
13. Which of the following statement is not correct with regard to Tax Saver
Scheme of Banks? (Ans:d)
a) Tax exemption is available for the deposit amount under section 80C of IT Act
b) Period of deposit is allowed up to 5 Years
c) TDS is applicable, if interest payment is above Rs.10000/- in a financial year
d) Maximum amount of deposit allowed is Rs.5 lakhs
e) c & d
14. A fall in Quick Ratio in comparison with Current Ratio indicates (Ans:a)
a) High Inventory Holdings
b) Low Inventory Hold ings
c) Decrease in Current Liabilities
15. Financial statements includes (Ans:e)
a) Balance Sheet
b) P & L
c) Cash & Funds Flow
d) a & b
e) a, b & c
16. Banks are permitted to take over borrowal accounts from other Banks &
Financial institutions provided (Ans:e)
a) Account should be Standard Asset with positive net worth
b) Copy of the borrowal account for preceding 12 months is to be obtained
c) P&C report is to be obtained from other bank before disbursement
d) Branch to take approval from next sanctioning authority e) All above
17. The guidelines on extending Adhoc Limits to the borrowers are(Ans:e)
a) Allowed in fund and non-fund based limits
b) Can be allowed maximum of 3 times during the validity of limit and the
maximum period allowed is 3 months for each adhoc limit
c) Adhoc Limit can be allowed up to 20% of the sanctioned working capital limits
to all eligible borrowers
d) a & b
e) b, c & d
18. Which of the following statement is NOT true with regard to Temporary
Overdrafts?
(Ans:c)
a) Can be allowed in Savings Bank Account
b) Can be allowed in Current Deposit Account
c) Can be allowed only 3 times in a account in a year
d) Should not be allowed in staff accounts
19. The eligible criteria for sanction of Tractor Loan to farmer is (Ans:d)
a) 3 Acres of Wet / Double cropped land
b) 6 Acres of Dry / Single cropped land
c) Minimum of 2000 working hours per year on borrower land
d) a & b
e) b & c
20. With regard to lending to farm sector, the guidelines on obtention of No Due /
No Objection certificate are (Ans:d)
a) Banks should not insist for the above certificate for loans up to Rs.50000/-
b) No charges are to be levied for issuance of certificate
c) Self declaration from the farmer is to be obtained
d) All above
21. Unsecured exposure is one where realizable value of tangible security is not
more than ....... of the outstanding exposure. (Ans:b)
a) 5%
b) 10%
c) 25%
d) 40%
e) None
22. RBI extending incentives to Banks for the following services (Ans:e)
a) Adjudication of Mutilated Bank Notes
b) Exchange of Soiled Notes
c) Distribution of Coins over the counter
d) Establishment of Coin vending Machines
e) All above
23. As per RBI guidelines, the banks? can levy charges to the Current accounts
for not maintenance of minimum balances provided.......... (Ans:e)
a) Charges should not exceed Rs.100 in a year
b) Charges should not exceed Rs.500 in a year
c) Bank has discretion to levy any amount of charges
d) No charges should be levied as Bank is not paying any interest to the

customer on Current Account deposit
e) Banks are allowed to levy reasonable charges but should be known to the
customers through proper communication.
24. Under the liberalized norms, a NRI can remit a broad money from his NRO
account, up to ............... (Ans:d)
a) One Million US Dollar Per Year
b) US Dollar of Two Million Per Year
c) US Dollar of 5000 per year without any declaration or certificate
d) US Dollar of One Million per year on the basis of undertaking and certificate e)
None of these
25. Branch sanctioned OCC limit of Rs.10 lakhs against hypothecation of stocks
worth Rs.15 lakhs with 30% margin. What would be the notional drawing power
when the present value of stocks is Rs.20 lakhs? (Ans:a)
a) Rs.10 lakhs
b) Rs.14 lakhs
c) Rs.20 lakhs
d) Rs.10.50 lakhs
e) None
26. Which of the following documents do not attract stamp duty? (Ans:b)
a) Promissory Note
b) Mandate
c) Power of Attorney
d) Form-A
e) None
27. The funds available under short term sources is greater than short term uses,
which indicates (Ans:a)
a) Low Current Ratio
b) High Debt Equity Ratio
c) Higher Current Ratio
d) Low Debt Equity Ratio
e) None
28. What would be the applicable interest rate payable for the overdue period to
the legal heirs of the deceased on matured Term deposit, if not renewed?
(Ans:a)
a) SB Interest Rate
b) Contracted Interest rate of matured deposit
c) Simple interest applicable to FD for the period the deposit remained with bank
after maturity
d) Applicable FD interest will be paid if renewed for further period
e) No interest
29. Stamped receipt is to be obtained for all cash transactions of above (Ans:e)
a) Rs.100/-
b) Rs.500/-
c) Rs.1000/-
d) Rs.2000/-
e) Rs.5000/-
30. The net of Exports & Imports and the services including foreign inward
remittances forms part of......... (Ans:c)
a) Balance of Payments
b) Capital Account
c) Current Account
d) Trade Surplus
e) Invisibles
31. Banks are empowered to take possession of securities (other than rural
properties) under provisions of...............Act, when the borrower fails to repay the
loan as per the agreement. (Ans:d)
a) Indian Contract Act
b) Revenue Recovery Act
c) DRT Act
d) SARFAESI Act
e) Banking Regulation Act
32. What is the net interest rate (Interest Rate minus Interest Subvention)
applicable for short term agriculture production loans (Crop Loans) up to Rs.3
lacs? (Ans:e)
a) Base Rate
b) Base Rate ? 1%
c) 10%
d) 8%
e) 7%
33. Base Rate of the Banks is fixed by (Ans:d)
a) Indian Banks Association
b) Reserve Bank of India
c) Planning Department of the Bank
d) Asset Liability Committee (ALCO)
e) Discretion of the Bank
34. While renewing the credit limits of the company, you find that the Debt
Equity Ratio is 3 compared to that of 2.5 in the previous year. It
indicates(Ans:c)
a) Increase of Profit enabled the Company to add to Reserves
b) Decrease of Debt Burden on the Company
c) Adverse Impact on Profit on account of increased interest burden
35. Banking Codes and Standards Board of India (BCSBI) deals with (Ans:d)
a) Inspection & Audit of Banks
b) Funds & Investments in Banks
c) Sanctioning of Loans
d) Customer Service
e) Banking Ombudsman
36. Banks can issue draft against accepting cash up to (Ans:d)
a) Rs.50000/-
b)Rs.20000/-
c)Rs.100000/-
d)Rs.49999/-
e) Any amount
37. How long the counterfeit notes can be kept with the bank after having
reported to police. (Ans:d)
a) 30 days
b) 1 Year
c) 2 Years
d) 3 Years
e) None
38. RBI advised banks that a Business Correspondent Agent has to be made
available within a radial distance of ...... and a branch within a radial distance
of ..... (Ans:a)
a) 2 KM & 5 KM
b) 5 KM & 2 KM
c) 3 KM & 5 KM
d) 5 KM & 10 KM
e) No limit
39. What is the insurance coverage available to the borrowers for natural death
and death due to accident under SGSY scheme? (Ans:a)
a) Rs.6000 & 12000
b) Rs.5000 & Rs.10000
c) Rs.6000/- only
d) Rs.10000/-
e) None
40. Having furnished PAN, NRO Term deposit attracts TDS on interest income at
(Ans:e)
a) 10%
b) 20%
c) 30%
d) 10.30%
e) 30.90%
41. Which of the following component is not required to be taken in to

consideration while arriving Base Rate? (Ans:e)
a) Cost of deposits/funds
b) Negative carry cost of CRR/SLR
c) Unallocated overheads
d) Average return on Net worth
e) Base Rate of Peer Banks
42. Branches should keep the PMEGP backend received in ......... and should be
adjusted to the loan account only after completion of ......... months. (Ans:a)
a) Fixed Deposit & 36 months
b) Savings Deposit& 36 months
c) Savings Deposit & 24 months
d) Fixed Deposit & 24 months
e) None
43. Garnishee order is by _____ and the customer and bank relation _____to it.
(Ans:d)
a) Income Tax Authorities & Debtor and Creditor
b) Police & Debtor and Creditor
c) Court & Judgment Debtor and Judgment Creditor
d) Court & Judgment Creditor and Judgment Debtor
e) None
44. Which agency is enabling the transfer of subsides directly to beneficiary

accounts through Aadhaar Enabled Payment Bridge (AEPB)? (Ans:d)
a) RBI
b) SEBI
c) IDRBT
d) NPCI
e) SBI
45. Call Money Market interest are linked to (Ans:d)
a) Bank Rate
b) Repo Rate
d) Market forces
e) None
46. Interest rate charged by the banks to exporters should not fall below.... after
taking applicable interest subvention. (Ans:c)
a) Base Rate
b) Base Rate ? 1%
c) Base Rate ? 2%
c) 7%
d) 10%
e) None
47. Firm X and Y are having accounts with Bank and the both the firms are
represented by A, B and C as partners. Firm X showing a debit balance of 2.20
lakh and there is a credit balance of 3 lakh in Firm Y. Bank adjusted the debit
balance of X account with available balance in Y account. (Ans:b)
a) Branch can exercise right of set-off
b) Right of set-off can?t be exercised as the accounts are different
c) Right of set-off can be exercised by issuing a notice
d) None
48. Transaction Password relates to (Ans:c)
a) Core Banking
b) ATM operations
c) Internet Banking
d) Tele banking
e) None
49. Nomination in respect of the following is to be witnessed by two persons.

(Ans:c)
a) All deposit accounts
b) Deposit accounts where the nominee is a minor
c) Physically challenged accounts
d) Thumb impression accounts (illiterate)
e) None
50 ?Actionable Claims? deals with(Ans:d)
a) Debt
b) Receivables
c) Subsidy or Duty Draw Back (Ans:e)
d) a & b
e) all the above.
??????????????????????
IBEU(AP)/AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT.
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? ? ? ? ? ? ? ???
IMPORTANT POINTS TO REMEMBER
1. The overdraft amount of Rs.5,000 sanctioned under PMJDY may also be

classified as MUDRA loans under Prime Minister Mudra Yojana (PMMY).
2.Loans upto Rs.50,000 will be termed as "Shishu".
3.Loans from Rs.50,000 to Rs.5.00 lacs will be termed as "Kishore"
4.Loans from Rs.5.00 lacs to Rs.10.00 lacs will be termed as "Tarun".
5. List of Officially Valid Documents (OVD) for Individuals as per PML Act, 2002
1) Passport,
2) Driving license
3) Permanent Account Number (PAN) Card
4) Voter's Identity Card issued by Election Commission of India
5) Job card issued by NREGA duly signed by an officer of the State Government
6) Aadhaar Card issued by UIDAI
7) Any other document as notified by the Government for this purpose from time
to time.
6.Documents other than OVD under relaxed norms for the purpose of
identification of Walk-in Customers.
1) Employee ID card issued by Government / Defense / reputed institutions,
2) Pension Payment Orders with photograph/
3) Photo ID issued by Post Offices,
4) Credit Card with photograph,
5) Photo ID issued to bonafide students of a University /
6) Kisan Card /
7) Disability Card /
8) Ration Card / PDS Card etc
9) Any other document to the satisfaction of the branch Manager
7.In our Bank, the concept of ?Monthly Average Balance' is followed and
service charge of 30 p.m. is levied uniformly on the last day of the month for
non maintenance of the required minimum balance for the month. The service
charge for non maintenance of minimum monthly average balance for savings
bank accounts is being enhanced to ` 50 per month and the following slab
structure for levying charges as per percentage of shortfall observed vis a vis
actual monthly average balance required is being implemented wef 01 04 2015.
Amount of shortfall to minimum balance required
Service charges to be levied p.m.
(In `)
76% - 100%
50
51% - 75%
40
26% - 50%
30
11% - 25%
20
1% - 10%
10
1. Whether Withdrawal slips can be used for Inter city and Intra City
Transactions?
No. Withdrawal Slip not permitted at Host Branches. Only Cheque leaf is
permitted.
2. Whether Cash Payment is permitted for Self Cheques at a Host Branch? (For
Normal
SB/CA/OD/OCC A/cs)?
Customers are allowed to withdraw cash ONLY by self Cheque (i.e. account
holder himself/herselfAlone can withdraw cash at any of the CBS branch subject
to ceiling prescribed below:
No Third Party Cash Payment is allowed at a Host Branch.
The maximum amount of single Cheque shall not exceed Rs.25000/- for Saving
Bank Accounts and Rs.50000/- for Current /OD/OCC accounts. There is no upper
limit fixed either for the number of withdrawals or the aggregate amount that
can be withdrawn in a single day.
In case of Multicity accounts, for Self as well as Third party cash payment can be
made at Host Branches up to Rs.50000/- per occasion, if it is a Multicity Cheque,
subject to specimen signature verification of the drawer and proper
identification of the beneficiary by the host branch.
3. Is there any ceiling on the cash that can be deposited in a host branch? (For
both Normal as well as Multicity Account)?
There is no ceiling for cash deposit at a host branch either for per occasion limit
or for the number of occasions or for the maximum aggregate deposit amount
per day.
4. Is there any cash handling charges?
Cash handling charges as applicable have to be manually recovered additionally.
5. What are the intra city and intercity transaction charges?
There is no charge for intra city transactions
For Inter city transactions, for transfer of funds between the branches, the
following are the charges:
Amount of Transaction Charges
Upto Rs.1 lakh Rs.5/-
Above Rs.1 lakh and less than
Rs.5 lakhs
Rs.25/-
Rs.5 lakhs and above Rs.50/-
Note:
In the case of Multicity accounts, all charges will be debited to Drawer's Account
only. In the case of ordinary accounts, all charges will be debited to the
Beneficiary's Account only.
9. No Penalty is charged for foreclosure of Deposits with term value upto 5.00
lakhs provided the deposit has been retained atleast 181 days.
10.Transactions Permitted Under "Payable at Par Cheque" facility at a Host

Branch Transaction Type Savings Bank / CA / CC / OD
Cash Withdrawal Allowed ONLY to self i.e., the account holder himself / herself
ALONE
can withdraw cash. Amount of single cheque shall not exceed R 50,000/-.
No cashpayment is permitted in the case of OD/OCC accounts at Host branch.
Clearing Debit ??Restricted only to those instruments crossed ?a/c payee? - No

upper
limit for single cheque amount, aggregate amount and number of cheques.
Transfer Debit / Credit
Restricted to only those instruments crossed ?a/c payee?. No upper limit for
single cheque amount, aggregate amount and number of cheques.
11. SUKANYA SAMRIDDHI ACCOUNT - A new Deposit Scheme of Government of

India for Girl Child.
1.Depositor means an individual who - on behalf of a minor girl child of whom he

or she is the guardian deposits money in an account under the rules.
2. Sukanya Samriddhi Account can be opened by branches handling PPF

accounts.
Opening of Account
i. The account may be opened by the natural or legal Guardian in the name of a
girl child from the birth of the girl child till she attains the age of ten years and
any girl child, who had attained the age of ten years, one year prior to the
commencement of these rules, shall also be eligible for opening of the account
under these rules.
ii. A depositor may open and operate only one account in the name of a girl child
under these rules.
iii. Birth certificate of the girl child in whose name the account is opened shall be
submitted by the guardian at the time of opening of the account along with other
documents relating to identity and residence proof of the depositor.
iv. Natural or legal guardian of a girl child shall be allowed to open the account
for two girl children only.
Deposits
a. The account may be opened with an initial deposit of one thousand rupees
and thereafter any amount in multiple of one hundred rupees may be deposited
subject to minimum of one thousand rupees per occasion and maximum in one
financial year Rs.150000/-
b. Deposits in an account may be made till completion of fourteen years, from

the date of opening of the account.
c. An irregular account where minimum amount as specified in sub-rule (1) has

not been deposited may be regularized on payment of a penalty of fifty rupees
per year alongwith the said minimum specified subscription for the year(s) of
default any time till the account completes fourteen years.
Mode of Deposit :
a. Cash or Cheque for transfer. Clearing instruments, on realization can be

credited into this account.
Interest on deposit :
a. Interest at the rate, to be notified by the Government, compounded yearly

shall be credited to the account till the account completes fourteen years.
b. In case of account holder opting for monthly interest, the same shall be
calculated on the balance in the account on completed thousands, in the balance
which shall be paid to the account holder and the remaining amount in fraction
of thousand will continue to earn interest at the prevailing rate.
Operation of account :
a. The account shall be opened and operated by the natural or legal guardian of
the girl child till the girl child in whose name the account has been opened,
attains the age of ten years.
b. On attaining age of ten years, the account holder that is the girl child may
herself operate the account, however deposit in the account may be made by
the guardian or any other person or authority.
Premature closure of Account:
a. In the event of death of account holder, the account shall be closed on

production of death certificate issued by competent authority and the balance at
the credit of the account shall be paid along with interest till the month
preceding the month of premature closure of the account, to the guardian of the
account holder.
b. Where the Central Government is satisfied that operation or continuation of

the account is causing undue hardship to the account holder, it may, by order,
for reasons to be recorded in writing, allow premature closure of the account only
in cases of extreme compassionate grounds such as medical support in life
threatening diseases, death etc.,.
Pass Book
a. The depositor will be given a pass book bearing the date of birth of the girl
child, date of opening of account, account number, name and address of the
account holder and the amount deposited.
Transfer of Account:
a. The account may be transferred anywhere in India, if the girl child in whose
name the account stands shifts to a place other than the city or locality where
the account stands. L
Withdrawal :
a. To meet the financial requirements of the account holder for the purpose of
higher education and marriage, withdrawal upto 50 percent of the balance at the
credit, at the end of preceding financial year shall be allowed.
b. The withdrawal referred in (a) shall be allowed only when the account holder
girl child attains the age of eighteen years.
Closure on maturity:
a. The account shall mature on completion of twenty one years from the date of
opening of the account, provided:
Where the marriage of the account holder takes place before completion of such
period of 21 years, the operation of the account shall not be permitted beyond
the date of her marriage; provided
Further that where the account is closed under the above provision, the account
holder shall have to give an affidavit to the effect that she is not less than
eighteen years of age as on the date of closing of account.
b. On maturity, the balance including interest outstanding in the account shall be

payable to the account holder on production of withdrawal slip alongwith the
pass book.
c. If the account is not closed in accordance with the provisions of sub-rule (a),
interest as per the provisions of rule under "Interest on deposit" shall be payable
on the balance in the account till final closure of the account.
12. ATAL PENSION YOJANA (APY)
Eligibility: The minimum age is 18 years and the maximum age is 40 years for
joining under Atal Pension Yojana. Any Citizen of India who is having a bank
account with us and who are not members of any statutory social security
scheme can join under Atal Pension Yojana.
Enrollment and Subscriber Payment: Eligible Subscribers who are having a bank
account with us may join under Atal Pension Yojana by submitting an application
prescribed for the scheme with an auto-debit instruction by the subscribers for
debiting their bank accounts towards monthly contribution under Atal Pension
Yojana. Each subscriber has to contribute every month as per his/her
commitment. Instalments not deducted due to insufficient balance in the bank
account would be deducted in the subsequent month alongwith penal interest at
a rate to be decided by PFRDA. The standing instructions will be run based on the
date of joining and the subscriber will be allowed to upgrade once in a year.
13. E-PURSE New Product in Net Banking
Customer can open E-PURSE SB accounts through net banking (up to

maximum three accounts)
For the accounts opened in net banking E-PURSE DEBIT CARD and PIN
mailers will be dispatched to branch.
Branch has to deliver the card and activate the pin mailers
Customer can use the DEBIT CARD for cash withdrawal from ATM and for POS
transactions
Customer can transfer the required amount to the respective E-PURSE

account at any time through net banking.
Customer can also close the E-PURSE SB account at any time through net
banking, after transferring the entire balance in the account and upon surrender
of the E-PURSE DEBIT CARD to the branch.
14.ONLINE REGISTRATION FOR NET BANKING FACILITY.
New facility introduced for online registration for net banking by customers.
With this facility individual customers can register for the net banking facility on
line. For availing this facility the following items - mobile number, email id, date
of birth or pan number - must have been registered correctly in their CIF number.
15. "IB Smart Remote" provides following services to our customers:
Toggle the card status between restricted mode and open mode. Only nonfinancial transactions can be performed using the card when the card is in
restricted mode.
Increase / decrease the withdrawal limit for ATM & POS channels within the
maximum limit permitted by our Bank for each card type.
At present "IB Smart Remote" is available for Android based Smartphone users.
????????????????????
IBEU(AP) / AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT.
?? ?? ?? ?? ?? ?? ?? ?? ??
OBJECTIVE QUESTIONS FOR CLERICAL TO OFFICER PROMOTION TEST ON
03.01.2016.
??????????
WISHING YOU "ALL THE BEST "
?????????
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1.What should be the minimum capital adequacy ratio and net NPA level of a
Bank for declaring dividends as per RBI.(Ans:c)
a)CAR 10% and net NPA 5%
b)CAR of 9% and net NPA of 3%
c)CAR of 9% and Net NPA of 7%
d)None of these
2.Can the interest charged by banking companies be scrutinized by courts?

(Ans:b)
a)Yes they have powers to scrutinize the rates of interest.
b)No; as section 21A of BR Act makes the rates of interest charged by banks
beyond the scrutiny of courts.
c)Yes with the permission of central government.
d)None of the above.
3.In which of the following cases paying banker is liable to third parties other
than the drawer?(Ans:c)
a)When the bank is wound up before making payment to the holder in which
case the holder becomes the creditor to the bank.
b)When the banker pays a cheque disregarding the crossing in which case the
bank is liable to the true owner of the cheque.
c)Both a and b
d)None of the above.
04 an Indian company may issue ?employees? stock option? and/or ?sweat

equity shares? to its employees/ directors or employees/directors of its holding
company or joint venture or wholly owned overseas subsidiary/ subsidiaries who
are resident outside India. The company making such issue is required, to submit
a return to RBI, as per the Form-ESOP within ____ days from the date of
issue,(Ans:d)
a)10 days
b)15 days
c)20 days
d)30 days
05 For accounting periods commencing on or after April 1, 2015, deposits placed

with NABARD/SIDBI/NHB by banks, on account of shortfall in priority sector
targets should be included under Schedule ______ in their Balance
Sheet.(Ans:d)
a)Schedule 8 - Investment
b)Schedule 7 - Borrowing
c)Schedule 9 ? Loans and advances
d)Schedule 11 ? other assets
06 As per RBI guidelines of July 2015, the ______ of a credit card account for the
purpose of asset classification would be reckoned from the payment due date
mentioned in the monthly credit card statement:(Ans:c)
a)NPA status
b)sub-standard classification status
c)past-due status
d)credit rating status
07 In case of banks, a credit card account will be treated as non-performing asset

if the minimum amount due, as mentioned in the statement, is not paid fully
within ____ from the payment due date mentioned in the monthly credit card
statement.(Ans:c)
a)30 days
b)60 days
c)90 days
d)180 days
08 Prepaid Payment Instrument (PPI) for Mass Transit Systems (PPI-MTS) can be
issued by banks with a validity period of:(Ans:b)
a)6 months
b)min 6 months
c)max 6 months
d)at bank discretion
09 Prepaid Payment Instrument (PPI) for Mass Transit Systems (PPI-MTS) issued
may be reloadable in nature and at no point of time the value / balance in PPI
can exceed the limit of ____:(Ans:b)
a)Rs.1000
b)Rs.2000
c)Rs.2500
d)Rs.10000
10 The agency commission payable to authorised banks for handling the work
relating to physical receipts for Kisan Vikas Patra, 2014 and Sukanya Samriddhi
Account is as under:(Ans:b)
a)Rs.50 per transaction
b)Rs.55 per transaction
c)Rs.60 per transaction
d)5.5 paise for Rs.100 turnover
11 The agency commission payable to authorised banks for handling the work
relating to payments under Kisan Vikas Patra, 2014 and Sukanya Samriddhi
Account is as under:
(Ans:d)
a)Rs.50 per transaction
b)Rs.55 per transaction
c)Rs.60 per transaction
d)5.5 paise for Rs.100 turnover
12 Banks may open current accounts of prospective customers that are availing
credit facilities with other banks, if no response is received from the existing
bankers to a notice sent, after a minimum waiting period of ______ :(Ans:b)
a)one week
b)one fortnight
c)21 days
d)one month
13 A personal loan of Rs.5 lac was sanctioned to a reputed party on the security
of NSCs worth Rs.50000. The party did not pay the loan for the last 6-7
months. For the purpose of provisioning, the account will be treated
as:(Ans:b)
a)standard account
b)sub-standard unsecured account
c)doubtful account
d)loss accounts
14 Physical possession of a mortgaged security can be taken by the bank in case

loan is not repaid under the provisions of :(Ans:a)
a)SARFAESI Act 2002
b)Indian Contract Act
c)DRT Act
d)all the above
15 The audit in a bank branch which is contemporaneous with the occurrence of

transactions or is carried out as near thereto as possible, is called:(Ans:b)
a)regular audit
b)concurrent audit
c)special audit
d)statutory audit
16 Concurrent audit at branches of banks, as per RBI guidelines, should cover at

least :
(Ans:c)
a)all advances
b)all deposits and all advances
c)50% of deposits and advances
d)25% of deposits and advances
17 As per RBI guidelines, the appointment of an external audit firm may be

initially for one year and extended upto ____ years, after which an auditor could
be shifted to another branch subject to satisfactory performance.(Ans:c)
a)one year
b)two years
c)three years
d)at bank discretion.
18 In the concurrent audit, the concurrent auditor must verify that the cash
transactions of ______ are reported under Cash Transaction Report: (Ans:a)
a)a Rs.10 lac and above
b)b Rs.5 lac and above
c)c Rs.2 lac and above
d)d Rs.1 lac and above
19 In the concurrent audit, the concurrent auditor must verify that for all cash
transactions of ______ the PAN or Form 60 is indicated:(Ans:c)
a)Rs.2 lac and above
b)Rs.1 lac and above
c)Rs.50000 and above
d)Rs.10000 and above
20 Banks are required to ensure that their overall direct lending to non-corporate
farmers does not fall below the systemwide average of the last ____ years
achievement which is notified by RBI, failing which they will attract the usual
penalties for shortfall.(Ans:c)
a)five years
b)four years
c)three years
d)two years
21 As per RBI, the bank are required to reach the level of ___ of ANBC or CEOBE,
whichever is higher in case of direct lending to the beneficiaries who earlier
constituted the direct agriculture sector.(Ans:b)
a)18%
b)13.5%
c)10%
d)8%
22 AD category -1 banks can offer export factoring to their export customer

which can be:(Ans:c)
a)on with recourse basis only
b)on without recourse basis only
c)on with or without recourse basis
d)either (a) or (b)
23 The seller of machinery is ready to supply the machinery to the buyer of the
machinery on a long term payment period of 5 years, provided the transaction is
guaranteed by the bank. To cover this, the bank will issue which of the
following:
(Ans:d)
a)stand by letter of credit
b)financial bank guarantee
c)performance bank guarantee
d)deferred payment guarantee
24 Under Basel3 framework, liquidity coverage ratio (LCR) is to be introduced in

India by RBI w.e.f.:(Ans:e)
a)01.01.2013.
b)01.01.2014
c)01.01.2018
d)01.01.2019
e)01.01.2015
25 Under, the Money Transfer Service Scheme ( MTSS ), the maximum amount of
single remittance can be -?-:(Ans:d)
a)USD 500
b)USD 1000
c)USD 2000
d)USD 2500
26 A bill of exchange covering supply of goods has been drawn by M/s Delhi
Supplies Co. on M/s Panipat Goods Traders and is accepted by Mr. Purshotam Lal,
an attorney of the buyers. Before its due date, the power of attorney is cancelled
and the buyer refuses the pay the bill on date treating it as non
accepted(Ans:a)
a)the bill is deemed to have been accepted and the buyers are liable on the bill
b)the bill is deemed to have been accepted but only the attorney holder is
liable
c)the acceptance is deemed to have been cancelled with cancellation of the

attorney
d)Any of the above
27 A police inspector visits your branch in connection with a fraud having taken
place in the town, to examine the records of an account holder with authority for
the same from in-charge of police station:(Ans:c)
a)he cannot be allowed to do so
b)he has no authority to undertake the inspection of bank accounts
c)he will be permitted to examine the records relating to the particular account
but not obtain copy of any records
d)he will be permitted to examine the records and also obtain copy of any
records, if requested.
e)he will not be entertained
28 For cancellation of nomination in a bank deposit account, which of the

following form is used(Ans:b)
a)DA-1
b)DA-2c
c)DA-3
d)Plain paper instruction
29 The nominated bank received documents drawn under an LC on July 22, being
Wednesday. What is the last day by which the documents must be examined by
the bank to make the payment:(Ans:b)
a)July 29
b)July 28
c)July 26
d)incomplete information
30 Which of the following represents the working capital gap: (Ans:a)
a)current assets less current liabilities other bank borrowing
b)current assets less current liabilities
c)long term sources less long term uses
d)total outside liabilities less total fixed assets.
31 What is the educational qualification criteria for a loan under PMEGP

scheme:(Ans:b)
a)minimum 10th pass where the project cost is above Rs.10 lac for
manufacturing and above Rs.5 lac for servicing project
b)minimum 8th pass where the project cost is above Rs.10 lac for
manufacturing and above Rs.5 lac for servicing project
c)minimum 8th pass where the project cost is above Rs.5 lac for manufacturing
and above Rs.10 lac for servicing project
d)no education criteria is applicable in PMEGP advances
32 Which of the following documents in respect of a company contains internal

rules for conducting business of the company ?(Ans:a)
a)Articles of Association
b)Memorandum of Association
c)Certificate of commencement of business
d)Certificate of incorporation
e)Resolution from Board of Directors
33 The authorised capital of a company is Rs.10 lac and paid up capital is 80% of
this. The loss in the previous year was Rs.50000 and in the current year Rs.2 lac.
Find out net worth of the company.(Ans:b)
a)Rs.10 lac
b)Rs.8 lac
c)Rs.6 lac
d)Rs.5.50 lac
34 Your branch issues a term deposit in favour of Z & Y, but at a later stage the
name of Y was deleted and X?s name added , on the request of Z and Y. Now Z
wants his name to be deleted and add the name of W, his son. How you would
handle the request ?(Ans:b)
a)not accept, as the request is accepted for one change only
b)not accept as there should be one deposit holder out of the original account
holders
c)accept the request, as it is from authorized persons
d)accept the request if it comes from all, including Y.
e)can be allowed with Head Office permission only, which will be sought
35 On unsecured sub-standard accounts, what is the extent of provision that

banks are required to make:(Ans:b)
a)10%
b)20%
c)30%
d)40%
e)50%
36 A Bill of Exchange is dated 31.08.2004 and is payable 3 months after date. It

is presented on Sept 02, 2004 and accepted by the drawee on Sept 03, 2004.
What will be its due date ?:(Ans:a)
a)Dec 03, 2004
b)Dec 04, 2004
c)Dec 05, 2004
d)Dec 02, 2004
e)Dec 06, 2004
37 Account of X was running irregular. Bank agreed to continue the loan

provided X provided some personal guarantee. X offered guarantee of Y. Later on
when loan was not paid and bank initiated action against X and Y, Y took the plea
that he is not liable as the fact of irregularity was not brought to his notice by the
bank: (Ans:c)
a)Y is not liable because full facts were not disclosed
b)amount can be recovered from X and Y in equal proportion
c)guarantor is fully liable for the loan as it was up to him to verify the facts
before giving guarantee
d)the amount can be recovered only from one of them only.
38 The term annewari is used in the context of which of the following:(Ans:a)
a)relief measures to be initiated by banks in case of natural calamities such as

drought, flood etc.
b)action to be initiated in case of fraud taken place in a bank branch
c)action to be initiated for recovery of loan due to willful default by the

borrower
d)any of these
39 When a foreign currency is purchased or sold and the units of foreign currency
remain constant while of the home currency vary with the changes in the market
(say 1 dollar = 45.95), such rates are called(Ans:b)
a)forward rate
b)direct rate
c)cross rate
d)indirect rate
e)spot rate
40 Which of the following loan group is part of the weaker section

advances:(Ans:c)
a)PMEGP, NRLM, SHG
b)NULM, SHG, PMEGP
c)SC/ST, SHG, SRMS
d)SC/ST, SHG, SME
41 On which of the following documents, the payment of stamp duty does not
differ from State to State ?(Ans:c)
a)power of attorney
b)mortgage deed
c)bill of exchange
d)guarantee deed
e)sale deed
42 Trade transactions in foreign exchange between Srilanka and India are settled
by way of:(Ans:d)
a)Indian rupee
b)Srilankan currency
c)US dollars
d)ACU dollars or ACU Euro
e)SDRs
43 The term broad money is known as:(Ans:c)
a)M1
b)M2
c)M3
d)M4
44 An officer of your branch, while appraising a loan proposal of M/s Shiv Kumar
and Sons, comes across the balance sheet which reflects the long term uses at
125% of the long term sources. Such use of funds, is expected to result in which
of the following ?(Ans:c)
a)improvement in debt equity ratio
b)improvement in current ratio
c)deterioration in current ratio
d)deterioration in debt service coverage ratio.
45 The committee on Financial Inclusion was headed by Sh_____ :(Ans:c)
a)Deepak Mohanty
b)V K Sharma
c)C Rangarajan
d)N N Vohra
46 In case of illiterate account holders, branch to obtain _______ witnesses while

accepting nomination(Ans:b)
a)one
b)two
c)three
d)banking discretion
47 Which of the following is the key objective of migrating to base rate system in
fixing rate of interest for loans:(Ans:a)
a)transparency in the pricing of lending products
b)appropriate compensation to banks
c)availability of credit to borrowers
d)all the above
48 A loan officer of your bank branch wants to make use of the appraisal tool
called break even analysis but he does not understand what break even is. In
simple words, how do you define break-even to guide him about what it is ?
(Ans:c)
a)where the sales level is maximum
b)where the cost is minimum
c)where the sales and cost are equal to each other
d)where there is no loss but the firm is in profit
e)where cost is slightly more that the sale
49 Your branch had sanctioned a preshipment credit to an exporter who has sent
the goods for shipment but so far he has not handed over the bill of lading,
although shipment has taken place few weeks back:(Ans:c)
a)if it not presented to bank within 7 days of shipment it will become stale
b)if it is not negotiated within 10 banking days it cannot be negotiated
c)if it is not presented to the bank for negotiation within 21 days of date of
shipment, it will become stale
d)if it not presented for negotiation within 21 days of date of shipment it will be
claused bill of lading
50 A bill of exchange drawn by a party in Mumbai and payable by anotherparty

in Ludhiana is due for payment on 2nd October 2015, a holiday on account of
Gandhi Jayanti. It will be paid on:(Ans:c)
a)next day
b)next business day of the bank i.e. 3rd Oct 2015
c)next preceding business day i.e. 1st Oct 2015
d)next preceding banking day

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1.Bank gets a loan application of Rs 150000 in priority sector other than
Agriculture. In how much time period the application is required to be disposed of
(Ans:c)
a)2 weeks
b)4-5 weeks
c)8-9 weeks
d)Discretion of the bank
2.What is correct out of the following in the context of DRI scheme family
annual income (Ans:b)
a)in rural areas it is Rs. 7200 and in urban areas Rs.6400.
b)in rural areas it is Rs. 6400 and in urban areas Rs.7200.
c)in rural areas it is Rs. 7200 and in urban areas Rs.7200.
d)in rural areas it is Rs. 6400 and in urban areas Rs.6400.
3.In foreign currency, the currency rate is called indirect rate when (Ans:c)
a)Rupee variable, FC variable
b)Rupee fixed, FC fixed
c)Rupee fixed, FC variable
d)Rupee variable, FC fixed
4.Which of the following committees is related to Computerisation in Banks

(Ans:d)
a)Narasimham Committee
b)Kelkar Committee
c)CS Murthy Committee
d)Saraf committee
5.In a partnership a minor is admitted for benefits. After some time, one
partner of the firms become insolvent. In such situation who pay the liability
within the partner(Ans:b)
a)All partners will contribute equally including the minor
b)Partners other than the minor will make up the liability of the insolvent.
c)All partners will contribute in the ratio of their shares in capital including the
minor
d)All partners will contribute in the ratio of their shares in profit including the
minor
6.An exporter is granted a loan by the bank in foreign currency and there is
currency fluctuation. What type of risk will be face(Ans:a)
a)Forex risk
b)Credit risk
c)Default risk
d)All the above
7.What type of charge is hypothecation of stocks in a cash credit limit (Ans:c)
a)Fixed charge
b)Pari-passu charge
c)Floating charge
d)Exclusive charge
8.For analysis of financial position of a firm, the goodwill is classified in their

balance sheet as (Ans:d)
a)Fixed asset
b)Non-current asset
c)Current asset
d)Fictitious asset
9.What is the maximum period for which the banks can offer a recurring
deposit
(Ans:a)
a)120 months
b)92 months
c)60 months
d)Discretion of the month
10.Under Education loan for education abroad, which type of expenditure is not
include(Ans:d)
a)Expenses relating to hostel facility
b)Expenses relating to travel abroad
c)Expenses relating to tuition fee
d)Trip to local area abroad
11.The provision for standard A/Cs other than Agriculture & SSI is: (Ans:b)
a)0.25%
b)0.40%
c)1%
d)2%
12.For an FCNR(B) account, the currency rate fluctuation risk is borne by:
(Ans:a)
a)The bank where the deposit is held
b)Reserve Bank of India which uses the forex
c)Customer which brings the forex
d)Govt. of India that attracts such deposit
13.A company approaches a bank to credit the account of a large number of

shareholders of the Company. The transaction will be: (Ans:b)
a)National Electronic Funds Transfer
b)Electronic Clearing Service ? Credit
c)Electronic Clearing Service ? Debit
d)Real Time Gross Settlement
14.In bank branches, the Customer day is observed on: (Ans:b)
a)10th of every month
b)15th day of every month
c)20th day of every month
d)15th day of 1st month in each quarter
15.The bank has allowed a Loan against NSCs under nomination. The customer
has died. A Govt. Agency wants it for the recovery of Govt. dues: (Ans:c)
a)The first right will be that of the Govt.
b)The first right will be that of the nominee
c)The first right will be that of the bank
d)The proceeds will be shared by each equally
16.The banks prefer registered firms for sanctioning of loans because:

(Ans:d)
a)Banks can recover loan from the firm
b)Banks can recover the loan from the partners jointly
c)Banks can recover the loan from the partners jointly and severally
d)The firm can recover their debts from their debtor and their financial position
remains strong and positively affect the bank loan recovery from the firm.
17.In case of PMRY eligibility, the normal age limit of general candidates and
for SC/ST is: (Ans:a)
a)18-35 years, 18-45 years
b)18-40 years, 18-45 years
c)18-35 years, 18-40 years
d)18-40 years, 18-45 years
18.Within priority sector, the target for micro enterprises under SME loans is
(Ans:c)
a)Maximum 60%
b)Maximum 40%
c)Minimum 60%
d)Minimum 40%
19.Adjusted net bank credit for priority sector purpose is calculated as

(Ans:b)
a)NBC - Non SLR bond in HTM category
b)NBC + Non SLR bond in HTM category
c)NBC + FCNR and NRNR Deposits
d)NBC ? FCNR and NRNR deposits
20.In retail lending loan to other than essential goods, the loan of Rs 25 lakh
classified.
(Ans:a)
a)A non Priority Sector loan
b)Loan for agriculture in priority sector
c)A priority sector retail loan
d)A priority sector small business loan
21.What is the purpose of SGSY scheme: (Ans:c)
a)To raise the standard of living of poor persons in India
b)To raise the standard of living of poor persons in rural areas
c)To bring the families below poverty line to above poverty line
d)To sanction loans with subsidy to make credit available at cheap rate.
22.The investment criteria in Small Service industry is related to plant and

machinery which can be: (Ans:c)
a)above 5 lakhs but upto 10 crore
b)above 10 lakhs but upto 5 crore
c)above 10 lakhs but upto 2 crore
d)above 25 lakhs but upto 2 crore
23.The term hypothecation is defined under which Act (Ans:c)
a)Indian Contract Act
b)Transfer of Property Act
c)SARFAESI Act.
d)Not defined in any Act
24.All rupee loans sanctioned and credit limits renewed w.e.f. April 1, 2016
will be priced with reference to the_____________which will be the internal
benchmark for such purposes.
Ans:Marginal Cost of Funds based Lending Rate (MCLR)
25.The MCLR will comprise of:(Ans:e)
a)Marginal cost of funds;
b)Negative carry on account of CRR;
c)Operating costs;
d)Tenor premium
e)All the above
26. Which of the following securities shall not be treated as encumbered for the
purpose of maintenance of SLR assets, namely (Ans:d)
a) securities lodged with another institution for an advance or any other credit
arrangement to the extent to which such securities have not been drawn against
or availed of;
b) securities offered as collateral to the Reserve Bank for availing liquidity

assistance from Marginal Standing Facility (MSF) up to the permissible
percentage of the total NDTL in India, carved out of the required SLR portfolio of
the bank concerned; and
c) securities offered as collateral to the Reserve Bank for availing liquidity

assistance under Facility to Avail Liquidity for Liquidity Coverage Ratio (FALLCR)
d) All the above.
28. ?Marginal standing facility? shall mean:
Ans:The facility under which the eligible entities can avail liquidity support from
the Reserve Bank against SLR securities, up to a certain per cent of their
respective NDTL outstanding at the last Friday of the second preceding fortnight.
29. In a bill the name of the ?drawee in case of need? is mentioned. When it was
presented to the drawee it was dishonoured. Now the bill is said to be
dishonoured. (Ans:b)
a)Since it was dishonoured by the drawee
b)only after it is presented to the drawee in case of need and dishonoured by

him
c)It is not compulsory to present it to drawee in case of need
d)none of the above
30. Loans given to Director or his relative can be written off by a bank, only with
the permission of: (Ans:d)
a)Finance Ministry
b)CMD of the Bank
c)Board of the bank
d)RBI
31. A promissory note has been received from aboard. This is to be stamped
(Ans:a)
a)Before negotiation
b)Before presentation for payment
c)Before acceptance by the maker
d)Within 4 months of entry into India
32. The minimum amount permitted for remittance under RTGS is Rs. (Ans:b)
a)0.10 lac
b)1.00 lac
c)1.50 lac
d)2.00 lac
33.A Firm withdraws Rs. 100000/- from SB a/c. Rs. 50000/- from CA. Rs.
40000/- from OD. What will be the amount of BCTT : (Rs.) (Ans:d)
a)40
b)50
c)90
d)nil
34. How many times a demand draft can be revalidated: (Ans:d)
a)No restriction by any bank
b)As per law, no restriction. Practice differs bank to bank
c)As per discretion of the bank
d)It cannot be revalidated twice.
35. Under Senior Citizen Saving Scheme 2004, the account holder cannot close
the account : (Ans:c)
a)Can close the account any time
b)Cannot close the account at all
c)Cannot close the account before 1 year
d)Cannot close the account before 2 years
36. If a company has adjusted its loan, it has to file the particulars with ROC for
charge satisfaction within a period of: (Ans:b)
a)A: 15 days
b)B: 30 days
c)C: 60 days
d)D: No such requirement is there, as the loan has been adjusted.

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IMPORTANT COMMITTEES APPOINTED BY RBI AND IT?S CHAIRMEN
Title
Date
Chairman/Convenor
??????
Report of the Committee on Differential Premium System for Banks in India
Sept. 2015
Shri Jasbir Singh
??????
Report of the Working Group on Compilation of Flow of Funds Accounts for Indian
Economy
Aug. 2015
Shri D.K.Mohanty
??????
Manual on the Compilation of Flow of Funds Accounts of the Indian Economy
Aug. 2015
Shri D.K.Mohanty
Economy
??????
Report of Committee on Data Standardization
Mar. 2015
Shri P. Parthasarathi
??????
Report of the Internal Working Group (IWG) to Revisit the Existing Priority Sector
Lending Guidelines
Mar. 2015
Smt. Lily Vadera
??????
Report of the Committee on Capacity Building in Banks and non-Banks
Sept. 2014
Shri G Gopalakrishna
??????
Report of the Internal Working Group on Implementation of Counter-cyclical
Capital Buffer
Jul. 2014
Shri B. Mahapatra
??????
Report of the Committee on Data and Information Management in the Reserve

Bank of India
Jul. 2014
Shri D.K.Mohanty
??????
Estimates of Productivity Growth for the Indian Economy
Jun. 2014
Shri B N Goldar
??????
Report of The Committee to Review Governance of Boards of Banks in India
May 2014
Dr. P.J.Nayak
??????
Report of the Working Group on Resolution Regime for Financial Institutions
May 2014
Shri Anand Sinha

??????
Report of the GIRO Advisory Group
Apr. 2014
Prof. Umesh Bellur

??????
Report of the Group on Enabling PKI in Payment System Applications
Apr 2014
Dr Anil Kumar Sharma

??????
Report of the Working Group on Pricing of Credit
Apr 2014
Shri Anand Sinha

??????
Report of the Committee to Recommend Data Format for Furnishing of Credit
Information to Credit Information Companies
Mar 2014
Shir Aditya Puri

??????
Implementation Group on OTC Derivatives Market Reforms
Mar 2014
Shri R. Gandhi
??????
Report of the Committee on Financial Benchmarks
Feb 2014
Shri P. Vijaya Bhaskar

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Report of the Technical Committee on Mobile Banking
Feb 2014
Mr. B Sambamurthy
??????
Report of the Technical Committee on Enabling Public Key Infrastructure (PKI) in
Payment System Applications
Feb 2014
Dr Anil Kumar Sharma

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[12/24, 7:47 AM] Merit CBI Palepu Nageswara Rao Faculty: 1.CRR as per section
42 of RBI act and SLR is as per BR act section 24.
For remembrance sake one trick ,cash is with RBI so RBI act ,RBI is big brother so
big section 42 the rest is BR act, OK.
[12/24, 7:47 AM] Merit CBI Palepu Nageswara Rao Faculty: 5.Hypothecation is
defined in which act
A.Indian contract act B.SARFAESI act C. N.I.Act D. Transfer of property act
[12/24, 7:47 AM] Merit CBI Palepu Nageswara Rao Faculty: 3. Revaluation reserve
in which capital
A.Tier-1 B.Tier-2 C.Tier-3 D. Equity buffer

[12/24, 7:47 AM] Merit CBI Palepu Nageswara Rao Faculty: 2.While answering
question on Banker customer relationship, first study the question whether they
asked Banker customer or customer Banker,in this question locker and safe
custody, collection of cheque are important
[12/24, 7:47 AM] Merit CBI Palepu Nageswara Rao Faculty: 4. In case of Safe
custody WHAT IS BANKER CUSTOMER RELATION SHIP AND UNDER WHICH ACT
[12/24, 7:51 AM] Merit CBI Palepu Nageswara Rao Faculty: 10. A not Negotiable
crossed cheque can be endorsed how many times
A.No it can't be endorsed B.it can be endorsed any no of times C.Not Negotiable
means not transferable D.This is a special crossing,so can't be endorsed
[12/24, 7:51 AM] Merit CBI Palepu Nageswara Rao Faculty: 8. In the following
crossings which is not having holder in Due Course
A. Account payee B. Not Negotiable. C. & co D.two parallel lines
[12/24, 7:51 AM] Merit CBI Palepu Nageswara Rao Faculty: 7.In a cheque
endorser signed with a notation pay to Z without liability to me.This endorsement
is called
A. Facultative endorsement B. Sansrecourse endorsement C. Sand frais
endorsement D.Full endorsement
[12/24, 7:51 AM] Merit CBI Palepu Nageswara Rao Faculty: 6.Account is opened
on 28.10.15 and customer issued cheque DT.1.9.2015, can the bank pay the
cheque.
A. Yes, B. No C. It is not as per good faith D. No,It can not be paid as per Due
diligence
[12/24, 7:51 AM] Merit CBI Palepu Nageswara Rao Faculty: 9.In case of banking
ombdusman what is the maximum award
A. 1 lac B. 5 lacs C.10 lakhs D. 20 lakhs
[12/24, 8:21 AM] Merit CBI Palepu Nageswara Rao Faculty: 11. Whose Applegate
authority in case of banking ombdusman?
A. Governor of RBI B.Dy governor of RBI, C. Chief justice of High court D . Finance
secretary
[12/24, 8:21 AM] Merit CBI Palepu Nageswara Rao Faculty: 13.LLP should be
registered with whom
A.Registrar of firms B. Registrar of company C. Registrar of assurances D. no
registration required
[12/24, 8:21 AM] Merit CBI Palepu Nageswara Rao Faculty: 12.Assignment is
A. Transfer of property Act B. Indian contract act C. Stamp act D. B R act
[12/24, 8:21 AM] Merit CBI Palepu Nageswara Rao Faculty: 14. With in how many
days bank has to give reply for borrower's objections in SARFAESI act
A. 30 days B. one week C. 15 days D.No time limit
[12/24, 8:21 AM] Merit CBI Palepu Nageswara Rao Faculty: 15. What is the
limitation period for Equitable mortgage
A 3 yrs B.12 yrs. C. 30 years D. 13 yrs
[12/24, 8:33 AM] Merit CBI Palepu Nageswara Rao Faculty: 16. How much should
be deposited by party in SARFAESI act
A. 50% of decreed amount B. 75% of decreed amount C. 25% of decreed amount
D. Nil
[12/24, 8:33 AM] Merit CBI Palepu Nageswara Rao Faculty: 17.In case of credit
card complaints maximum award given by Banking ombdusman?
A.1 lac B.10 lacs C. 5 lacs D.Nil
[12/24, 8:33 AM] Merit CBI Palepu Nageswara Rao Faculty: 19.Advance against
document of title to goods
What is the charge
A.Pledge B.Hypothecation C.Lien D.Assignment
[12/24, 8:33 AM] Merit CBI Palepu Nageswara Rao Faculty: 18.Document of title
A.Transfer of property Act B. Sale of goods act C.Indian contract act D.Company
act
[12/24, 8:33 AM] Merit CBI Palepu Nageswara Rao Faculty: 22. What is the% of
Provision coverage ratio
A.50% B. 70% C.55% D.100%
[12/24, 8:33 AM] Merit CBI Palepu Nageswara Rao Faculty: 20.what is the
provision for restructured standard account
A.2.75% B.5% C.3% D.6%
[12/24, 8:33 AM] Merit CBI Palepu Nageswara Rao Faculty: 21.A loam given under
CGTMSE what is Risk weight
A.0% B.30% C.20% D.100%
[12/24, 8:38 AM] Merit CBI Palepu Nageswara Rao Faculty: 25.Garnishee order
/income tax attachment order applicable in which case between customer and
banker
A. Creditor-debtor B. Debtot-Creditor C. Assignor-assignee D.assignee-assignor
[12/24, 8:38 AM] Merit CBI Palepu Nageswara Rao Faculty: 28.The rate at which
RBI discounts first class bills for banks know as
A. Yield rate B Cupon rate C. Repo rate D.Bank rate
[12/24, 8:38 AM] Merit CBI Palepu Nageswara Rao Faculty: 24. In case of
SARFAESI act possession notice to be published in how much period
A.One week B.15 Days C.60 days D. No time period
[12/24, 8:38 AM] Merit CBI Palepu Nageswara Rao Faculty: 30.Loan sanctioned
against margin of 25%,cash credit limit is Rs.3 Lakhs, to get full limit how much
stock it should have
A.5 lakhs B.4 lakhs C.6 lakhs D.7 lakhs
[12/24, 8:38 AM] Merit CBI Palepu Nageswara Rao Faculty: 26.who is garnishee in
case of garnishee order
A. Bank B.customer C. Court D.customer debtor
[12/24, 8:38 AM] Merit CBI Palepu Nageswara Rao Faculty: 23. customer lost
Fixed deposit , bank obtained a document for issuing duplicate, in this case what
is the relationship between Banker and customer
A. Attorney and agent B Indemnifier and Indemnified C. Indemnified and
indemnifier D.Guarantor and beneficiary
[12/24, 8:38 AM] Merit CBI Palepu Nageswara Rao Faculty: 29.if no time of
payment is specified in a Promissory note or Bill of exchange, such instrument is
considered as
A. Incomplete instruments B.Invalid instruments C. Usance instruments
D.Demand instruments
[12/24, 8:38 AM] Merit CBI Palepu Nageswara Rao Faculty: 27. Bank has given a
loan against actionable claim what is the charge
A. Assignment B.Hypothecation C.Lien D. Pledge
[12/24, 7:21 PM] P.V.KRISHNA RAO: ??????????????????????
IBEU (AP) / AIBEA TRULY CARES EVEN FOR YOUR CAREER DEVELOPMENT
?? ????????????????????
1. The right of creditor to retain possession of goods and securities of the

debtor till creditor's dues are paid by the debtor is called: Lien
2. What will be current ratio if NWC=10,000 and current liability =30,000:

1.33:1 (Current Assets will be Rs 40,000)
3. Current Asset - 400; Current Liability - 300 out of which 200 is bank
borrowing. What will be Working capital gap and net working capital?: Working
capital Gap 300 (CA minus current liability except bank borrowing) and net
working capital will be Rs 100 ( 400 - 300)
4. When nomination is made by a depositor who is literate, witness is required

from how many persons:None. No witness is required for nomination in case of
deposit accounts of literates. (For illiterates 2 witnesses are required)
5. What is the rate of interest given by RBI on CRR Balance: NIL
6. Appeal against the award of the Ombudsman can be made by a customer

within how many days?: 30 days from receipt of copy of the award.
7. What is the relationship between a bank and a customer in case of deposit

accounts?: Debtor and Creditor
8. If counterfeit notes up to ____ are detected in a single cash deposit in the

bank branch, bank is not required to lodge FIR with police. Instead, bank should
send a consolidated report and send such notice to police at the end of the
month?: 4
9. An account was opened on 24.11.2007 and the cheque book was issued on
30.11.2007. Two cheques dated 18.11.2007 & 26.11.2007 are presented for
payment on 08.12.2007. What should the bank do?: The cheques can be passed
if otherwise in order.
10. Validity period by reduced to three months by RBI in case of - Cheques,

Demand Draft and Pay Order
11. When Pan no. is not given by a person from whose tax is to be deducted at
source, how much tax will be deducted by bank from sums payable to him?: 20%
12. A customer has long overdue overdraft of Rs 10000 recoverable from a

borrower. The same customer has a saving and current account with the bank.
Bank wants to combine the deposit account of a customer with overdue
overdraft account of the same customer for recovery of its dues. Bank can do so
by exercising right of: Set Off
13. What is the Bank Rate at present : 8.25%
14. In a partnership formed under Indian Partnership Act 1932, what is the
liability of a partner in a partnership firm?: Partner is liable jointly and severally
i.e. as partner as well as in his personal capacity. Therefore, liability is unlimited.
15. A depositor who had made nomination wants to cancel the same. On which
form he will be required to make request to bank in this regard? DA 3
16. Power of Attorney is issued by A to X. In the power of attorney it is written

that POA is irrevocable. After 3 months from executing POA, A cancels the POA. X
approaches the bank not to entertain the cancellation of POA and allow him to
operate the Account. What should the bank do?: Bank will not allow operations to
the agent as agent's authority comes to an end with the cancellation of POA
though POA was irrevocable.
17. A manufacturing unit will be classified as small manufacturing enterprise

provided original investment in plant and machinery does not exceed: Rs 5 crore
18. Rate at which RBI lends to a commercial bank against Govt security is
called: Repo Rate
19. Rate at which RBI rediscounts bills of commercial banks is called: Bank
Rate
20. When a security is hypothecated in favour of the bank, which of the

following will happen?: Both ownership and possession remain with the borrower.
21. In Standard assets other than direct agriculture, SME , Commercial Real
Estate and Housing Loan at Teaser Rate what is the rate of provision?: 0.4% of
outstanding.
22. For calculating working capital requirement of a firm as per Turnover

method, these are worked out at ______% of Projected annual sales: 25%.
23. Banks are required to maintain secrecy of customer's account as per:

Implied Contract.
24. Banks are required to maintain SLR as per: Section 24 of B R Act
25. Which ratio is calculated to ensure firm's ability to pay interest and
instalment of term loan: Debt Service Coverage Ratio.
26. Crop loan given for short duration crop becomes NPA when it is overdue
for: 2 crop seasons.
27. Calculate debt collection period if sales =120 lac, debtor is =60 lac: 6
months
28. Banks can finance a Self Help Group after: 6 months of its formation.
29. Who decides interest rate on Saving Bank Deposits?:Banks themselves.
30. Why banks do not grant loan to a minor?: A minor is not competent to
contract. Therefore, loan given to a minor can not be recovered.
31. Penalty for delay is _____ per day if information is not furnished within
prescribed time under Right to Information (RTI) Act: Rs.250.
32. What is Operational risk?: Risk due to failure or inadequacy of internal

system procedure, people.
33. As per Turnover Method for assessing working capital requirements and as
suggested by Nayak Committee, length of operating cycle is assumed at: 3
months.
34. In which type of crossing, a holder of a cheque shall not get a better title
than that of the transferor: Not negotiable
35. Which of the following is not a material alteration?: Converting a bearer

cheque to payable to order.
36. In case bank's name other than of drawee bank is written on the face of
the cheque without two parallel lines, then it will be treated as what type of
crossing?:Special crossing
37. Loan against Life Insurance Policy is granted on the basis of: Surrender
Value.
38. Total number of Banking Ombudsman in India: 15
39. Long Term uses -12; total Assets -30; Long Term source - 16; What is net
working capital?: 4
40. Agency which purchases NPA from banks is called:Asset Reconstruction

Company
41. What is guarantee corpus in MUDRA bank or funds allocated for MUDRA: Rs
20000 crore
42. Maximum deposit for allocating a locker: 3 year advance rent plus locker
breaking charges
43. Maximum deposit in PPF in a FY: Rs 150000
44. When a farmer in addition to agriculture is engaged in rearing of farmstock,

it is called: Mixed farming
45. What is full form of USB: Ultra Small branch
46. Bhartiya Mahila Bank is a - nationalized bank, Gramin bank, Public sector
bank, Private Bank: Public Sector Bank.
47. Minimum and maximum period for FCNR(B) accounts: 1 year and 5 year.
48. In which currency, FCNR(B) can be opened: In any freely convertible foreign
currency
49. What is Deffered Payment Guarantee?: Guarantee issued when payment by

applicant of guarantee is to be made in instalments over a period of time.
50. What type of charge is created on FDR: Assignment
51. Target for weaker section loan are ____% of ANBC:10%
52. What is the date for final implementation of Basel III?:31.03.2019
53. Safe custody of Articles comes under which act: Indian Contract Act
54. Loan to MSME without Collateral : Rs.10.00 Lac
55. CGTMSE set up by: Govt of India and SIDBI
56. CGTMSE cover eligible for loan upto:Rs.100.00 Lac
57. OD in PMJDY account upto: Rs.5,000/-
58. Post Harvest Loan against Pledge or Hypothecation of crop produce

provided for____ months: Loan upto Rs.50.00 Lac period not extending 12
months 22. Debt Swap meaning: To extend finance to farmers for repayment of
loan taken from non institution lenders.
59. Shortfall in PS advance target, amount to be deposited in: RIDF
60. For Standing Instruction, relation between bank and customers: Agent and
Principal
61. If Garnishee Order without description of amount received, what should the
bank do?: Full amount to be attached
62. Minimum deposit to open BSBDA account: NIL
63. Long duration crop means a crop with crop season of: more than 12
months
64. Provision on secured Sub Standard Loan:15% of outstanding
65. Maximum amount of Claim that can be filed Lok Adalat: Rs.20.00 Lac
66. Eligible Amount of suit in DRT: Rs.10.00 Lac & above
67. Time Limit for registration of equitable mortgage with CERSAI: 30 days
from date of deposit of title deeds
68. Why partnership firms register with Registrar of firms?: Unregistered firm
cannot file suit against debtors for recovery of dues.
69. Full form of USSD: Unstructured Supplementary Service Data
70. A housing loan in metro area will be classified as Priority Sector, provided
maximum amount of loan is up to _______ and maximum cost of house is up to:Rs
28 lac; Rs 35 lac.
71. Personal Accident cover for death and permanent disability in PMJDY:
Rs.1.00 Lac
72. Accrual Accounting means: that expenses and revenues are recorded in the
period they occur, whether or not cash is paid or received.
73. Current ratio indicates: Liquidity of the firm
74. Networking capital: Current Assets minus Current Liabilities
75. Under LRS scheme any resident individual can remit abroad upto :
$2,50,000 per person per financial year
76. Monthly consolidated report to Police in case of how many counterfeit

notes?: Detected upto 4 piece in a single deposit.
77. Rate of Interest in Sukanya Samridhi Account for 2015- 16: 9.20%
78. Interest paid by RBI on cash deposit by banks with RBI as CRR requirement:
NIL
79. Net Interest Income is Equal to: Interest received on assets ? Interest
payments on liabilities
80. Standby LC is similar to: Bank Guarantee
81. Pledge is: Bailment of Goods to secure payment of a debt.
82. Protection to paying bank for payment of materially altered cheque under:
section 89 of N I Act
83. If Interest and Principal of FD is Rs.20,000 or above it will be paid: by credit

to account or account payee cheque and not in cash.
84. Differential rate of interest can be paid on fixed deposit if deposit is for:
Rs.1.00 crore and above
85. When banks purchase Govt Security form RBI, it is called: Reverse Repo
86. What is incorrect about RTI?: Reason to be mentioned in RTI application
87. BC agent uses which machine for transactions? : Biometric Machine
88. Minimum Net worth for installing White Label ATMs by a company:
Rs.100.00 crore
89. Premium under PM Jeevan Jyoti Bima Yojna: Rs.330/- p.a.
90. Premium under PM Suraksha Bima Yojna: Rs.12/- p.a.
91. Charge of transaction above free transactions while using ATM Card in
other bank's ATM:Rs.20/- per transaction.
92. Minimum Lock in period for Tax saver FDR: 5 Years
93. In which type of charge both possession and ownership are with borrower:
Hypothecation
94. Customer day is to be observed on which day of the month: 15th of every
month
95. UCPDC full form: Uniform Customs and Practices for Documentary Credits
96. In Micro & Small enterprises loans, no collateral upto: Rs 10 lacs
97. DSCR indicates: Ability of firm to repay term loan instalments
98. Current ratio of the firm indicates: Ability of firm to pay current liabilities or
indicates liquidity
99. Protection to collecting banker is available under: section 131 of N I Act
100. When a cheque with material alteration is paid when material alteration
was not visible, protection to paying Bank under: Section 89 of N I Act.
??????????????????????
[12/24, 7:24 PM] P.V.KRISHNA RAO: ??????????????????????
101. CRR is maintained as per: Sec 42(1) of RBI Act
102. Minimum qualification for loan under PMEGP if project cost in

manufacturing more than 10lacs : 8th pass. If up to Rs 10 lakh no min
qualification
103. Maximum Guarantee coverage for loans guaranteed by CGTMSE if loan up

to Rs 5 lakh: 85% of the amount in default with a maximum of Rs 425000.
104. Break even point: Level of sales at which there is no profit no loss
105. Payment of DD more than 20000 only by crediting to account and not in
cash as per: RBI guidelines
106. What is Pari-Passu Charge when loan has been sanctioned by more than
one bank in consortium?: In case of default, the sale proceeds of security will be
shared in the ratio of outstanding within sanctioned limits.
107. For seeking information under RTI what is not required?: Reason for
seeking information not to be disclosed.
108. When on default by Principal Debtor, guarantor pays dues of borrower, he

is entitled to all rights and remedies which the creditor had against the borrower.
This right of guarantor is called: Right of Subrogation
109. What is the maximum amount of loan that can be guaranteed under
CGSMSE?: Rs.100 lakh.
110. FCNR opened as which type of account: Fixed Deposits
111. Periodicity of R Return to RBI: Fortnightly or twice in a month on 15th and

last day.
112. Stand by Letter of credit is just like: Bank Guarantee
113. Difference between Deferred payment guarantee and Term Loan: Due to
Outlay of Funds
114. Up to what amt no collateral in National Urban Livelihood Mission: No

collateral up to any amount.
115. Bailment of goods to secure payment of a debt is called - Lien, Pledge,

Negativ Lien, Hypothecation: Pledge
116. Limitation period for execution of decree: 12 years.
117. Max amt for tax saver FD: Rs 150000
118. Certificate of incorporation issued by: Registrar of Companies
119. What is mortgage: Transfer of interest in specific immovable property to

create security for a debt
120. Safe deposit locker - maximum deposit that can be asked is: 3 year
advance rent plus locker breaking charges.
121. No collateral up to how much amount under NRLM scheme i.e. aajivika: Rs
10 Lakhs
122. Certificate of incorporation is: proof of existence of a company.
123. Liability of confirming bank in LC: Bank makes additional undertaking to

make payment under LC in addition to undertaking of issuing bank.
124. What can be the maximum project cost in case of Agri clinic: Rs 20 lac per
individual (Highly successful case - max Rs 25 lac). For group it is max Rs.1 crore.
125. How much foreign currency can be retained by a resident individual on

return from abroad after 180 days of arrival in India?: USD 2000 and no limit on
coins.
126. Maximum amount of foreign currency that can be taken abroad: USD
3000.
127. What is Debt securitization: Converting illiquid financial assets in to liquid

marketable securities.
128. What is Variable cost: Which changes with production like Raw material,
wages, power.
129. If Counterfeit notes up to ___ are detected in one deposit, no FIR to be

lodged but Consolidated report to be sent to police at the end of the month:4
130.Deferred Payment guarantee is: Financial Guarantee
131. What is noting: Recording the fact of dishonour of a bill or promissory note
with Notary public
132. A letter of credit which becomes available again on negotiation of

documents under LC is called: Revolving LC
133. Bank limit for working capital based on turn over method: 20% of the
projected sales turnover
134. Account holder dies. Cheque signed by POA presented for payment. What
should be done?: Not to be paid.
135. Current account operated by finance director of a limited company.

Cheque signed by him presented for payment after his death: Cheque should be
paid
136. Under SARFESAI, appeal against decision of DRT can be made to DRAT
within_____ days and if appeal by borrower, he should deposit ______% of bank's
claim with DRAT: 30 days; 50%
137. Banker customer relationship in standing instruction: Agent and Customer
138. Which is not the function of ALCO?: Fixing Budgets and Targets
139. Period for KYC updation on Low risk customers: once in 10 years.
140. When letter of administration issued: When a person dies intestate.
141. What is rate of Premium in Pradhan Mantry Suraksha Bima Yojana

(PMSBY)?: Premium payable Rs.12 per annum per member; sum insured Death
/permanent disability Rs. 2 lacs; Partial disability Rs. 1 lac.
142. What is age limit in PM Jeeven jyoti yojna?: Eligible all saving accounts
holder in the age of 18 to 50 years; Benefits Rs. 2 lac on death due to any
reason; Premium - Rs. 330 per annum per member.
143. What is the maximum Loan amount permitted under KCC?: No upper limit.
It is at the discretion of the bank
144. What is Pari Passu charge?: In case of consortium advance sale proceeds of
security will be shared among banks in proportion to their outstanding.
145. Minimum claim amount for filing case with DRT: Rs.10 lac and above.
146. Limit of foreign currency that can be taken abroad for business trip?:
USD25,000/- per trip.
147. Banker Customer relation in Standing Instruction: Agent & Principal
148. What is full form of RTGS?: Real Time Gross Settlement System.
149. What is full form of IFRS?: International Financial Reporting Standards.
150. General Insurance works on principle of: Spreading the Risk.
151. Contract of Insurance is a contract of: Indemnity.
152. Bank Customer relation in safe custody: Bailee-Bailor.
153. Protection in case of payment of cheques with Material alteration

available under: Sec 89 of NI Act.
154. If principal plus interest of fixed deposit is Rs. 20,000 and above no cash
payment to be made as per: Section 269 T of Income Tax Act.
155. Tax at Source is deducted on interest on fixed deposit if interest paid /

payable on a fixed deposit in a financial year is above Rs. 10,000. This is as per:
Section 194A of Income Tax Act.
156. Payment in due course is defined under which Act: Sec 10 of N.I. Act.
157. EEFC account is kept as which type of Account?: Current Account.
158. How much Education loan is allowed for vocational purpose in India?: For
course duration upto 3 months Rs.20,000/-; for 3 to 6 months - Rs.50,000; 6
months to 1 year - Rs. 75,000 & Above one year - Rs.1.5 lac.
159. CRR is decided by___ and how much interest is paid on CRR balance: RBI,
No interest is paid.
160. Number of members in Joint Liability Group: 4 to 10.
161. What should be the minimum qualification of beneficiary for being eligible
for a loan under PMEGP if project cost in case of manufacturing is more than
Rs10 lac: Minimum 8th pass.
162. In case of failed ATM transaction customer's account should be recredited

within how many days of the complaint?: 7 working days.
163. When a complainant receives copy of award from Bank Ombudsman,

within how many days, he is required to give his acceptance?: 30 days from date
of receiving the copy of award.
164. Appeal against decision of Banking Ombudsman can be made to: Deputy
Governor RBI.
165. FIR to be filed if number of Counterfeit notes in a single deposit is: 5 or

above
166. Which not a credit rating agency in India: CIBIL.
167. When ownership with the borrower but possession with the bank, the
charge is: Pledge
168. Mortgage is defined under: Transfer of Property Act.
169. What is minimum amount of DD which should be issued by bank with

account payee crossing?: Rs.20000/-
170. What is amount of housing loan that will be classified under priority sector
for metro cities with respect to guidelines of april 2015?: Rs.28 lac
171. What is Marginal Standing facility rate at present?: 8.5%
172. To increase liquidity, RBI performs which transaction?:REPO
173. What is peroid of term repos?: 7 days to 14 days.
174. Certificate of deposit issued with minimum amount of: Rs.1 lac and in
multiples of Rs.1 lac
175. Annual deposit in Sukanya Samradhi Yojna: Minimum Rs.1000; Maximum

Rs.1.50 lac in a year.
176. Customer day in branch is observed on: 15th of everymonth
177. Noting of negotiable instrument refers to: Getting the noting done with
Notary public in respect of dishonor of Bill of Exchange and Promissory Notes
178. Negative Lien means: Undertaking by customer that he will not sell or
create charge over a property without consent of the bank till bank loan is not
repaid.
179. Full form of CGSMSE: Credit guarantee Scheme for Micro and Small
enterprises
180. As per Personal Accident Insurance Scheme, what is the maximum

insurance cover available to KCC holder: In case of permanent disability or death
- Rs 50,000 and in case of partial disability - Rs 25000
181. What is the target for weaker section under priority sector: 10% of ANBC
or CEOBE whichever is higher.
182. Blue revolution refers to : fish breeding
183. Risk arising due to internal failure of system and procedures: Operational
risk
184. As per RTI Act, information related to life and liberty should be submitted
within: 48 hrs.
185. KYC updation for Low risk customer: Once in 10 years.
186. Collecting bank protection under which Sec of NI Act: Sec 131 of N.I. Act.
187. What is a promissory note?: Unconditional promise to pay.
188. CC/OD account becomes NPA when: the account remains out of order.
189. Which tax has been abolished in Budget 2015-16?:Wealth tax
190. Full form of LIBOR: London Inter Bank Offered Rate.
191. New name of Export Credit Guarantee Corporation of India is: ECGC Ltd.
192. Full form of IRDA is: Insurance Regulatory & Development Authority of
India.
193. New name of Planning Commission: "National Institution for Transforming

India" or "NITI"
194. What is full form of NPA?: Non Performing Asset
195. What is full form of FDI?: Foreign Direct Investment
196. What is full form of MICR?: Magnetic Ink Character Recognition
197. What is full form of CRAR?: Capital to Risk weighted assets ratio
198. What is the present rate of SLR?: 21.5% of NDTL
199. FCNR (B) can be opened in how many currencies?: Any freely convertible
currency ( earlier 6 foreign currencies - USD, Euro; GBP; Jap Yen; Australian
Dollar; Canadian Dollar)
200. What is the maximum housing loan for a dwelling unit so that it is covered
under priority sector: Rs 25 lakh in places with population over 10 lakh and Rs 15
lakh for places with population up to 10 lac.
??????????????????????
Wishing you " All the Best "
??????????
[12/24, 7:25 PM] P.V.KRISHNA RAO: ??????????????????????
201 What is the normal strength of SHG under NRLM: 10-15 persons
202 In KCC insurance premium borne by bank and customer in ratio of: 2:1
( 10:5).
203 What is the validity period of KCC: five years
204 Insurance amt in KCC for partial disability: Rs.25000 ( death & permanent
disability - Rs. 50,000).
205 Under CGTMSE liability upto 5 lac how much cover available to micro
Enterprises: 85% ( 4.25 lacs )
206 Limitation period for mortgage suit by bank: 12 years.
207 Under equitable mortgage by way of deposit of title deeds, the property
must be situated where: Property can be situated anywhere but the deposit of
title deed should be at any notified town notified by state govt.
208 Under Sarfaesi cases include where outstanding liability is: above 1 lac
209 The appraisal of deferred payment guarantee is similar to term loan: The
difference is outlay of funds.
210 Provision required for Agri & SME sector for standard asset: 0.25%
211 Tier I capital also known as: core capital.
212 Which is latest UCP : UCP 600 ( w.e.f. 01.07.2007 )
213 Amount accepted in cash by authorised dealers against sale of foreign

exchange is upto: Rs.50,000/-.
214 Under LRS amt permitted: USD 2.5 lac
215 Maximum term period for NRE deposits: 10 years
216 FCNR (b) a/c held only in the form of: term deposits
217 In EEFC a/c joint holder can be in the form of: former or survivor with close
relatives.
218 Which of the items will not be an asset in banks balane

sheet:Advances/Fixed Asset / Deposits : Deposits
219 Min Amt in RTGS: Rs. 2.00 lacs.
220 If the principal or interest payment remains overdue between 31-60 days:
SMA 1 category.
221 Process of converting physical shares into electronic form:dematerialization.
222 Loan to individual against shares in physical form : Rs. 10 lacs ( Demat form
20 lacs - 25% margin)
223 For counterfeit notes a consolidated report as per prescribed format to be

submitted to police authorities if in a single Txn note is: five pieces or more in
one transaction and if four pieces then consolidated report through nodal office
to local police station.
224 Neft settlement: 12 Hrly settlement on weekdays & 6 Hrly on Saturday.
225 Maximum amount under tax saver can be: Rs. 1,50,000/-
226 Penal rate if RTGS credit not given in 2 hours: Repo Rate +2%
227 For locker rent and break open CHS taken as security: 3 yrs advance + rent
228 A person is legally dead if not traceable for: 7 yrs from the date of fir ( Sec
108 of Indian Evidence Act).
229 CRR is calculated on: net demand & time liability.
230 For injection of liquidity Txn done by RBI: Repo Rate.
231 What is conversion: Interference with the legal rights of true owner: Cheque
in favour of the Co being credited in the personal account of the director.
232 Sale notice under Sarfaesi: 30 days.
233 In SME small services investment in equip upto: Rs. 200 lacs.
234 No of digits in Aadhar : 12
235 A & B are having joint a/c with ?e or s? operation with x as nominee. A dies:
The deposit on maturity payable to A.
236 ROC to be done with RTO also to prevent: Sale of vehicle without information
to the creditor and company.
237 Under new pension scheme- minimum subscription in a year :Rs.6000 in a

year ( min 500 at one time and for max there is no upper limit)
238 Features of National Agricultural Insurance? :Crop Damage Coverage
239 Maximum Number of persons in JLG? : 10 ( 4-10 )
240 Maximum people in SHG? : 20 ( 10-20 ).
241 Capital adequacy ratio related to? : CRAR- capital fund.
242 Relation between bank and judgment debtor: debtor & creditor.
243 R - Return when submitted to RBI? : Fortnightly basis - 15th & last day of the
month.
244 Right of creditor to retain the possession of goods as security belonging to

the debtor till the debt due to him are paid? :Pledge
245 Joint a/c can be opened in NRE & FCNR (b) with close relatives residing in
India with the operation? Former or Survivor.
246 Who cannot become a partner?: HUF
247 Death claim settlement in how many days? : 15 days
248 In how many years of no transaction does a saving and current account
become noperative? : two years
249 Min balance in small savings deposit bank a/c? : Zero / Nil Balance
250 Full form of CASA?: Current Account & Saving Account
251 In case of a/c transfer, with in how many days the address proof has to be
submitted in the transferee branch? Six Months
252 For making nomination in term deposits how many witness signature
required? Nil but if depositor is illiterate then two witness.
253 Purchaser of DD cannot do the following: Stop the DD Tangible Net Worth
(TNW) is calculated as: Total paid up capital + Reserves - Intangible Assets.
254 When an MSE unit is showing signs of sickness, the unit is said to be in the
______: Handholding stage of MSEs.
255 While extending finance to NBFC-MFIs, the percentage of Qualifying Assets

should be: Minimum 85%.
256 Internal Rate of Return is arrived at a point where future cash flows on Net
Present Value basis should be: Zero.
257 What is the cut-off date for RKBY during Khariff Season in case of Loanee
Farmers: November.
258 For a Loan more than Rs.1 crore to NGO-MFI /NBFC-MFI: 10% collateral in the
form of Bank Deposits.
259 Debt Securitization refers to: Conversion of receivables into debt

instruments.
260 IMPS: Immediate Payment Service - Mobile to account.
261 National Financial Switch of IDRBT (now with National Payment Corp of
India): ATM network.
262 Advantages of Cluster based finance to MSMEs: Risk mitigation.
263 Revaluation Reserve discounting factor to be taken to which capital: 55% &
Tier II Capital.
264 For the purpose of Medical expenses abroad, the maximum amount that can
be allowed is: USD 100,000 or as per the quotation from the Hospital abroad
whichever is high.
265 Sales above Breakeven point is: Margin of Safety.
266 Export trade is regulated by the Directorate General of Foreign Trade (DGFT).
267 The _____ has replaced the existing GR form used for declaration of export of
Goods at Non-EDI ports. The procedure relating to the exports of goods through
EDI ports will remain the same and SDF form will be applicable as hitherto. (EDF)
268 Interest Subsidy Scheme for Housing the Urban Poor (ISHUP). The scheme
will provide a subsidized loan for 15-20 years for a maximum amount of _______
for a EWS individual for a house: 1 lakh.
269 For Housing Loans, maximum amount of EMI that can be permitted for
salaried class, is to be taken as _______ of net salary: 50%.
270 In Model Educational Loan Scheme (IBA) repayment of the loan starts after
_______ from the date of completion of course: 24 months.
271 For setting up of White Label ATMs the corporate body net worth must be
______: 100 Crores.
272 ATM failed transactions are to be resolved within a maximum period of

_______: 7 working days
273 For Speed clearing, no charges should be levied for cheques up to ______:1
lakh
274 For Ultra Small Branches a designated officer will visit the village on a
prefixed date and time every ______with laptop and will be connected to Bank?s
central server (CBS): Week
275 Why International Financial Reporting System (IFRS) should be implemented:

For comparison of financials of companies operating in two different international
jurisdictions.
276 Market Risk is monitored by: Bank for International Settlements.
277 What is the purpose of Disaster Recovery Plan: Alternate Server installed for
smooth functioning of systems in case of failure of Main Server.
278 What is the time period for crediting proceeds of outstation cheques
presented in Speed Clearing: 48 hours.
279 While doing Project Appraisal, sensitivity analysis is useful for: Viability and
sustainability of project.
280 Market Risk is monitored by: Bank for International Settlements.
281 Lorry Receipts issued by Transport Operators approved by IBA are preferred.
The reason is the Transport Operators will take care of: Carriers Risk.
282 What is the definition of Quick Mortality: Account becoming NPA with in 12
months from date of first disbursement.
283 What is the target in DRI scheme for women: No Target for women.
284 While doing Risk Rating, an asset is downgraded from A+ rating to A rating.
What type of risk is involved: Credit Risk.
285 The extent of coverage under CGTMSE for Micro units upto Rs 5 lacs: 85%
with maximum amount of claim upto Rs 4.25 lacs.
286 Up to what loan amount banks need to lend under Consortium finance? Rs.5
Cr/Rs.10 Cr/Rs.20 Cr / Rs.50 Cr/ No limit now.
287 What should be annual income of a BPL family to be eligible for getting
interest subvention under educational loan? Rs 4.50 lac.
288 Cluster based approach is applicable for: a) Priority credit advance b) SME c)
SHG.
289 What is Hybrid debt instrument? a) Debenture b) Bond c) Preference shares

d) Convertible Bonds.
290 Implied authority of a partner does not allow ______ singly? Settle a dispute
relating to the business of the firm thru arbitration.
291 When guarantor on payment of all dues to principal debtor, he gets which
rights as that of creditor? a) Subrogation b) Lien c) Assignment d)Pledge.
292 Rating of Bank is carried by RBI on CAMELS criteria, what do "C" stands for?
Capital Adequacy.
293 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.
294 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.
295 Whether "WILL" has to be registered? Not required.
296 Which of the following does not come under Tier II capital? a) Capital
reserves b) Undisclosed reserves c) Revaluation reserves d) Cumulative
Perpetual shares: Capital Reserves.
297 Which of the following can purchase NPA? a) ARC b) Banks c) Financial
Institutions d) NBFC e) All of the above.
298 Nominee can claim payment when: Only after the death of depositor as a
trustee of legal heir.
299 A foreign tourist who is in India and is having USD 5,000/- wants to open a/c.
Which type of deposit account he can open: NRO for a maximum period of 6
months.
300 Monetary ceiling for case filing at Lok Adalat is : Max Rs. 20 lakhs. (Above Rs
20 lac for Lok Adalat under DRT).
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[12/24, 7:29 PM] P.V.KRISHNA RAO: ??????????????????????
301. If counterfeit notes up to ____ are received in a single remittance, no FIR
to be lodged: upto 4 bank notes
302. The restriction that banks cannot grant loans to its directors except where
permitted by RBI is as per: Section 20 of the Banking Regulations Act.
303. What is the full form of IFSC which is used for RTGS and NEFT?: Indian
Financial System Code
304. In case of long duration crops, account will become NPA if it is overdue for
_____: 1 crop season
305. Mortgage is defined in: Transfer of Property Act
306. Standby letter of credit resembles which type of guarantee: Financial

Guarantee
307. FDR of Rs.20000/- & above cannot be paid in cash and to be paid by
crediting account or issue of DD as per provisions of: Section 269 T of Income Tax
Act.
308. n case of loans to Micro and small enterprises, as per RBI guidelines, no
collateral security is required for loans up to: Rs.10 lacs
309. As per section 107 and 108 of Indian Evidence Act, a person can be
presumed to have died if he is reported missing for: 7 years.
310. Maximum amount of loan that can be sanctioned to a micro and small
service enterprise so that it is classified as priority sector advance?: Rs.5 crores
311. As per Turnover Method of working capital requirement as suggested by

Nayak committee, current ratio will work out to: 1.25:1
312. Capital is Rs 3.00 lac, Withdrawal by partners is 0.25 lac, net profit of the
firm for current year is Rs 1.25 lac, Tax paid is Rs 0.30 lac. What is the net
worth?: Rs3.65 lacs
313. What is Rural Debt Swap?: When loan is granted to farmers for repaying
debt taken from money lenders at high rate of interest.
314. What activity is taken by banks for Financial Inclusion?: Banks provide
banking services to poor people at an affordable cost.
315. What is the rate of provision on Sub-standard assets that were secured
abinitio? 15% of outstanding.
316. How much interest rate is paid by RBI on CRR balances: Nil
317. Up to how much amount claims can be filed with Lok adalat?: Rs.20 lacs
318. In case of advance granted by a consortium of banks,asset classification

should be based on the: record of recovery of the individual member banks
319.A person has requested you to issue foreign DD for USD 500. What rate
will be applied?: TT selling rate
320. Unspent amount of a Travellers card should be surrendered to authorized

dealer within ____ from date of arrival in India?: 180 days.
321. Deferred Payment Guarantee comes under which type of Guarantee?:

Financial Guarantee
322. In a balance sheet, which of the following is classified as Current Liability Stocks, Sundry Debtors, Trade creditors, Goodwill: Trade creditors
323. If machine is embedded in the earth, it will be classified as ______ for the
purpose of creation of charge: Immovable property.
324. What is the target for Agri for domestic commercial banks: 18% of ANBC
or CEOBE whichever is higher.
325. The CASA accounts where all the KYC norms have to be updated in every
two years, comes under: high risk
326. Maximum remittance to a student studying abroad on declaration basis

i.e. without estimate of foreign institution: USD 1 lakh per academic year
327. Maximum permitted amount for hospitalisation abroad on declaration

basis: USD 1lakh
328. Minimum and maximum period for NRE fixed deposits: 1year , bank
discretion
329. Nomination in the account of a minor can be done by: Minor can not
nominate. Guardian can nominate on behalf of minor.
330. For release of forex for import form A1 not required up to : $5000
331. The foreign currency to be surrendered to AD with in a period of: 180 days
after return to India.
332. Inoperative CASA accounts are those in which there is neither debit nor
credit transaction for a period of: 2year.
333. Produce marketing loans to farmers or loan against ware house receipts
are part of priority sector provided allowed for a period of: 12 months
334. An account jointly operated by A(director) and B(Secretary) of a company.

On the death of A the cheque signed by A presented in the bank. What should
the bank do? The cheque will be paid if otherwise in order.
335. A is the POA appointed by B. On the death of B, the cheque presented

with the A's signature. What should the bank do? Cheque will not be paid as POA
terminates on the death of account holder.
336. The minimum amount for remittance under RTGS: Rs.2 lakhs
337. No collateral security is required in case of loans tomicro and small

enterprises for loans upto: Rs 10lakhs
338. What is the amount of claim under CGTMSE in case of unit other than
belonging to women or in North East if outstanding is Rs 50 lakh?: Rs 37.5lakhs
339. On which of the following Asset classification and income recognition

norms will not be applicable - a) gold loans b) loans covered by state govt.
guarantee;c) loan against LIP: loan against LIP
340. Consortium financing is necessary for which of the following - a) Loans

above Rs ten crore fund based; b) Loans above Rs ten crore including fund based
and non fund based lending: Bank discretion. It is required when exposure limit
exceeded
341. Risk weight of loans guaranteed by secured by state govt: 20%
342. Risk weight of loans to the staff members which are secured: 20%
343. Current assets 48, net working capital 12 , current ratio: 1.33
344. A manufacturing enterprises will be classified as small enterprise where

the investment in plant and machinery is upto: Rs.5 crore
345. Penalty to be paid at the rate of ___ for delay in returning neft rejections:
repo rate +2
346. What is an inchoate cheque? It means an incomplete cheque in which

date, payee or amount is not mentioned.
347. When a loan is recovered from guarantor for dues payable by the Principal
Debtor, guarantor becomes entitled to all rights and remedies which the creditor
had against the Principal Debtor. This right of guarantor is called: Right of
subrogation
348. OD/CC account classified as NPA if it is not renewed or reviewed within:

180 days from due date of renewal.
349. A NPA account to be classified as a loss asset where realisable security

becomes less than: 10 per cent of outstanding.
350. A nonperforming asset in the books of a bank shall be eligible for sale to
other banks only if it has remained a non performing asset for at least _years in
the books of the selling bank: no period specified
351. When SARFAESI Act not applicable: overdue amount less than 20% of the
due amount
352. Corporate Debt Restructuring is when applicable: When amount 10 cr or

above
353. In education loan, interest subvention is given for which period: Entire
interest charged during moratorium
354. Margin is not required upto how much amount in agriculture loan: Rs.1
lakh
355. In CGTMSE claim up to loan of Rs 5 lakh is : 85% of amount in default
356.Who has the right to make nomination in Minor's account: Guardian

( Person legally competent to act on behalf of minor)
357. In a clubs account , chq can be signed by secretary and one more person,
if secretary dies can the chq signed by him can be paid: yes it can be paid
358. How much interest can be paid in FCNR A/c , if closed before one year: Nil
359. As per which guideline, DD of amount above 20000/- cannot be paid in

cash?: As per RBI guidelines since it has to be crossed account payee.
360. Under which Act demnd draft cannot be paid to bearer : section 31 of RBI
Act
361. Where SLR provision is mentioned: Section 24 of B R Act
362. How much loan can be given against Demat Share and Physical Share: Rs
20 lakh; Rs 10 lakh
363. When the cash budget method is used: Seasonal industries
364. As per KYC periodical updation of Data for every 2 yrs is for which type of
customer: High Risk
365. If there is overdue in OD and credit balance in SB, under which right bank
can set adjust the balance: right to set off
366. Who is testamentary guardian: Guardian appointed by will
367. Who is Resident: person who resided in India for more than 182 days in
previous financial year.
368. Bailment of goods is related to: Pledge
369. What is conversion: Dealing with others property without his consent
370. Limitation period for mortgage: 12 years
371. What is funds flow statement: statement of sources and application of

funds over a period
372. How much risk percentage under unsecured staff loans: 75%
373. In a Bill of exchange what is the liability of drawer before acceptance and
after acceptance: If Bill is not accepted liability of drawer is primary and if
accepted liability of drawer is secondary.
374. After transfer of deposit account, within how many period fresh address
proof should be submitted: 6 months of transfer of account
375. What is the purpose of Disaster Recovery Plan : Ans: Alternate Server
installed for smooth functioning of systems in case of failure of Main Server (Blue
Print);
376. As per UCP 600, number of days permitted for scrutiny of documents
while negotiating Bills: 5 banking days
377. What is the exchange rate applicable for export proceeds that are
credited to NOSTRO account for USD 37500 and then credited to customer: TT
Buying Rate
378. What is the time period for crediting proceeds of outstation cheque
presented in Speed Clearing: 48 hours
378. RBI provides export credit Re-finance to Banks under Sec 17(3A) of RBI
Act 1934 on the basis of rupee export credit. What is the interest rate on this
Refinance: Repo Rate under Liquidity Adjustment Facility.
379. In an Exchange Quotation, the rate is mentioned as USD 60.61/63. What

rate you Buy: 60.61 380. What is the present Reverse Repo Rate: 5.75 %
381. A Foreign Traveller is travelling into India. What is the maximum Forex,
the traveller can carry without declaration in Currency Declaration Form: Less
Than FC$5000 or FC&FCTC$10000.
382. Loan System for Delivery of Bank Credit is meant for: Optimum utilization
of Bank's funds and credit iscipline.
383. A Forged Cheque is passed by Bank, wherein forgery isdone in such a

manner that it cannot be identified with naked eye. Whether Banker is liable:
Ans: Yes,because it will not be construed as mandate to debit the account
384. Current Assets:100 lacs. Current Liabilities:50 lacs.Quick Ratio: 1.5:1.

What is the value of Stocks: Rs 25 lacs.
385. A Loan of Rs.25 lakhs sanctioned to Woman for Micro Enterprise. What is
the coverage of CGTMSE: 80% of amount in default.
386. What is the maximum permissible amount of outward remittance per

annum by NRI from his NRO account: 1 million dollars
387. As per RBI instructions Basel 3 implementation to be completed by: 3103-2019.
388. A Cheque is signed by an Agent. Cheque presented after death of agent.

What is to be done: Cheque can be passed if it is otherwise in order.
389. Mortgage is required for Agricultural Loans if loan amount exceeds: Ans:
Rs.1,00,000/-
390. In case of Nomination, the nominee will get right after death of depositor
as: Trustee of Legal Heirs
391. While granting Loans to NBFC-MFIs collateral security of deposit to the

extent of ____ % of loan is to be obtained: 10%
392. Sprinkler Irrigation system will be installed for what types of crops:
Densely located Crops
393. Internationally LCs are subject to: UCPDC
394. Packing Credit is granted on the basis of: FOB value
395. Hot listing of Debit Card is done by way of: Stopping transactions at
Switch
396. What is the maximum quantum of loan that can be sanctioned to Joint
Liability Group: 5.00 lakhs
397. What is the Bank's Contribution of Premium in case of Personal Accident

Insurance Scheme for KCCS holders: Rs.10/- by Bank (Debit Rs.5/- to party's
account)
398. Computer programme which spreads and interfere with files is called as:
Virus
399. While submitting CGTMSE claims by banks, filing of suit is not compulsory
for advances upto: Rs.50,000.
400. While doing Project Appraisal, sensitivity analysis is useful for: Viability
and sustainability of proposal.
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[12/24, 7:31 PM] P.V.KRISHNA RAO: ????????????????????
401. Lorry Receipts issued by Transport Operators approved by IBA are
preferred. The reason is the Transport Operators will take care of: Carriers Risk
402. What is the interest payable by RBI on CRR balances: No Interest
403. What is the maximum permissible outward remittance for Treatment

Abroad without Estimates from Local Hospital: $1 lakh
404. Security value is eroded by more than 50% and the available security is
more than 10% of outstanding. What is the classification of this Asset: Doubtful
405. Internationally, Banks are maintaining capital for various type of risks as
per rules framed by: Bank for International Settlements
406. While preparing balance sheet of a firm, closing value of stocks is inflated.
What will be the effect?: Gross rofit will increase (Inflation in gross profit).
407. What is the purpose of Rural Debt Swap scheme?: To repay loans raised
from Money Lenders
408. As per Sec 19(2) of BR Act, no Banking Company can hold shares in
another company whether as pledgee, mortgagee or absolute owner of an
amount exceeding __ of the paid up share capital of that company or__% of its
own paid up share capital and reserves,whichever is less: 30%, 30%
409. What is the minimum percentage of Tier 1 capital prescribed by RBI: 6%
410. While doing Risk Rating, an asset is downgraded from A+ rating to A

rating. What type of risk is involved: Credit Risk
411. Operation risk is NOT caused due to (1)failure of systems (2) process by
people (3) external events (4)NON PAYMENT OF DUES BY BORROWERS (5) none
of the above: NON PAYMENT OF DUES BY BORROWERS
412. Tangible Net Worth is calculated as: Ans: Total paid up capital + Reserves
- Intangible Assets
413. What is IMPS?: Interbank Mobile Payment Service (IMPS) is an instant

interbank electronic fund transfer service through mobile phones.
414. In Break Even Analysis, Contribution means: Sales - Variable Cost or (fixed
cost + profit)
415. Spot Delivery means: T+2 days
416. Loan granted to women upto Rs.________ classified under Weaker

Sections. Rs.50,000/-
417. ______ % of total library budget should be used for purchase of Hindi
Books: 50%
418. Cluster Based Approach of SMEs will: Contain Risks
419. Basel II, Pillar 1 prescribed capital for what type of Risks?: Credit Risk,
Market Risk and Operational Risk
420. Which of the following is the benefit of CGMSE to borrower: No Collateral

& Third party guarantee
421. Debt Securitization means: Converting illiquid financial assets as

Marketable Securities
422. What is the provision on Doubtful Assets more than 1 year: Ans: 100% of
unsecured portion + 40% of realizable value of security.
423.What is Green Clause LC: Which contain a Provisionof financing for

Warehousing apart from Loan for procuring Raw Material
424. What is the maximum quantum of project cost for individual for setting up
Agri Business Centre: Ans: Rs.20 lakhs (Rs 25 lac for highly successful)
425. As per UCP 600, beginning of month means: Ans: 1st to 10th
426. LLP is to be registered with: Registrar of Companies
427. Sales Above Break Even Level: Margin of Safety
428. Commercial paper is issued in the form of: Usance Promisory Note
429. Delay in commencement of commercial production by more than 6months

for reasons beyond the control of the promoters indicates: Handholding stage of
MSEs.
430. As per Master Circular of RBI, Dec 2013, General Credit Card is classified
under: Non Farm Sector (Other Priority).
431. While extending finance to NBFC-MFIs, the percentage of Qualifying

Assets should be: minimum 85%
432. What is the full form of IFSC: Indian Financial System Code
433. Whether US citizen visiting India can open NRO account: Yes
434. If we discount future cash flows at the rate of Internal Rate of Return, the
Net Present Value should be: Zero
435. What is the penalty for delay in Providing Information under RTI Act:
Rs.250/- per day beyond 30 days, with maximum of Rs.25,000/-
436. What is the maximum amount of award Ombudsman can give in case of
Credit Card Operations: Rs.1.00 lakh
437. In Kisan Credit Card Scheme, what is the maximum ceiling of sub limit for
consumption credit: 10% of Crop Component.
438. An account that has become NPA will not be considered as wilful default if
it due to: Economic Recession
439. EEFC account can be opened as: Current Account Only
440. Foreign Exchange brought to India by a Resident has to be surrendered to

AD within a period of: 180 days
441. Pre Shipment credit - Concessional rate of Interest for: 270 days for loans
made up to 30.6.2010; Thereafter, no concession and it should not be below
base rate.
442. What is the LTV ratio prescribed by RBI for small value Housing Loans of
Rs.20.00 lakhs: 90%
443. Calculate DSCR. Profit after tax 45, Depreciation 15, Interest on Term Loan
25, Instalment 15: 85/40=2.125
444. What is the maximum quantum of GCC as per old scheme: maximum Rs.
25,000/-
445. Priority Sector Classification is modified as per recommendations of: M V

Nair Committee
446. What is the indication of Liquidity Risk: More amount of Liabilities

maturing than maturing Assets
447. Asset Liability Management is useful for: Interest Spread (NIM)
448. A customer having Gold Deposit Receipt for 3 years @3% interest wants
to prematurely close the deposit and accept @1% interest. What should be the
minimum period: Ans: 1year and 3months (1 year locking period for gold
deposits)
449. As per Internal Rating Based approach for capital for credit risk, Expected
Loss is calculated as: PD x LAD x EAD; probability of default x loss given at
default x exposure at default
450. As per UCP 600 if quality is not mentioned, what is the tolerance level:
Not applicable
451. CR: 1.33, NWC: 8 lacs. What is Current Asset: 32
452. Current Ratio is 3:1 and Quick Ratio is 1:1. What is inventory if Current
Asset is 30: 20
453. Currently which approach is being adopted for capital for Operational
Risk?: Basic Indicator Approach.
454. Indirect finance to Agriculture is 5.5% out of total 18.1% of total

Agriculture finance, how much of it will be part of priority sector?: Entire amount
will be part of PS though agriculture advance will be 17.1%
455. Notice of 60 days given by Banker under SARFASI, Borrower does not
acknowledge/respond in 15 days, what will be the next step of the banker?: The
secured creditor may take recourse to one or more of the following measures to
recover his secured debt, namely:-- (a) take possession of the secured assets of
the borrower; (b) take over the management of the business of the borrower; (c)
appoint any person to manage the secured assets the possession of which has
been taken over by the secured creditor;
456. A person died testamentary, what does it mean?: After writing the will
457. Limitation in case of Term Loan payable by instalments 3 years from due
date of each instalment
458. Not a part of direct agriculture finance- ACAB. POST HARVESTING; PACS;
PRE HARVEST: Advance to Agri clinic and agri business ACAB
459. How will non registration of partnership will affect the right of
partnership?: Partnership firm cannot file suit for recovery of its debt.
460. Account of ABC & Sons is overdue. Money is lying in XYZ and Co account.
Both are Partnership firms of the same 3 partners. Whether bank can adjust the
overdue?: Right of set off can be exercised.
461. LC liability is shown as ______ in balance sheet: Contingent liability
462. TDS is applicable in which type of Non resident accounts?: NRO accounts
463. Variation in interest rate does not affect the income or expense in case of
- CA, SB, RD, FD & Debentures: Current account
464. What is the full form of CRILC : Central Repository of Information on Large
Credits
465. When settlement is to be done in 2 days, which rate will be applicable cash rate, spot rate, call rate?: Spot Rate
466. After how many years of an account becoming Doubtful provision on

secured portion is also made at 100%?: When account is Doubtful for 3 years.
467. Sanctioned limit Rs 5 lac; Margin 25%; Stock Rs 6 lac; D.P. will be : Rs.4.5
lac
468. As per Turnover method of calculating working capital requirement as

suggested by Nayak Committee, limit sanctioned by a bank will be ____% of
projected annual sale: 20%
469. Up to how much amount proceeds of a fixed deposit with bank including
interest accrued can be paid in cash?: Less than Rs 20,000 ( i.e. Rs 19999. This is
as per section 269T of Income Tax Act)
470. In the case of National Rural Livelihood mission normally how many
members would be in a women Self Help Group?: 10 to 15
471. Balance Sheet of a firm indicates: Assets and Liabilities of a firm as on a

particular date
472. If in a Promissory Note or Bill of Exchange, it is not mentioned as to after

how much time it will be payable. In such a case, it will be treated as : payable
on demand.
473. In case of NEFT, how many times settlement takes place in a day other
than on Saturday?: 12 times (Settlement is hourly; first settlement at 8.00 AM
and last at 7.00 PM)
474. Which of the following is used in NEFT - MICR code,IFSC code, Swift code:
IFSC code.
475. What is the basis for finance against Life Insurance Policy: Surrender value
of policy
476. A cheque was issued on 1st January 2013. The date on the cheque was
mentioned as 31st January 2013. The cheque was presented for payment on
14th January 2013. What should the bank do?: Bank should not pay as the
cheque is post dated cheque and payment of such cheque not treated as
payment in due course.
477. Foreign Currency Non Resident (Bank) account is opened as which of the
following - SB, CD, FD, RD: Only as FD for 1 year to 5 year.
478. As per Basel II, banks are required to bring capital for three main risks.
Out of these three risks two risks are Market Risk and Operational Risk. Which is
the third main risk - Credit risk, liquidity risk, reputation risk, settlement risk:
Credit Risk?
479. If a farmer raises finance for purchase of agri machinery, up to how much
amount, the loan is exempt from margin and collateral security?: Up to
Rs100000.
480. Up to how much amount a demand draft can be issued against cash? : For
less than Rs.50,000 (i.e. up to Rs49999). However, if it is Rs 20,000 or above, it
should be crossed account payee only and if a draft is crossed then it can not be
paid in cash.
481. If a loan is granted for purchase of a truck, what type of charge will be
created on the security of truck?: Hypothecation.
482. If a loan is guaranteed by Credit Guarantee Scheme for Micro and Small
Enterprise, then collateral is not required for loans up to: Rs 1 crore in case of
commercial banks and Rs 50 lakh in case of Regional Rural Banks.
483. There is a FDR in the joint name of A and B payable to either or survivor. S
has been appointed as nominee. A has died. On due date of FDR, B presents the
FDR for payment whereas survivor also has submitted the claim for the amount.
Whom should bank pay?: Survivor i.e. B
484.In case of complaint relating to Credit Cards, up to how much amount, the
Banking Ombudsman may award compensation to the complainant for mental
agony and harassment: Rs 1 lakh.
485. When a Garnishee order issued by court on the request of Judgement

Creditor is received by a bank on the deposit account of Judgement Debtor, what
will be the relation between Bank and Judgement Debtor: Debtor and Creditor.
486. In case of insurance of deposits by DICGC, premium is payable to DICGC

at the rate of 10 paise per Rs 100 per annum. How much of it will be borne by
bank and how much by depositor?: Entire premium borne by bank.
487. When a change is made in a cheque in such a way that it changes the
basic character of the instrument like change in date, payee or amount it is
called: Material Alteration.
488. The crossing on a cheque can be made by: Drawer, Payee, Holder and
Bank.
489. When the maker or holder of a Bill of Exchange signs the same, otherwise
than as such maker, for the purpose of transferring ownership to a third party on
the back or face thereof, it is called: Endorsement
490. What is the rate of interest in case of loan under Scheme for
Rehabilitation of Manual Scavangers?: (a) For projects upto Rs. 25,000 : 5% per
annum; (for women beneficiaries): 4% per annum; (b) For projects above Rs.
25,000: 6% per annum.
491. Which of the following methods is not considered as exercising legal

options for recovery of debt - Securitisation Act, Filing case with DRT, Filing case
with Lok Adalat, Compromise: Compromise
492. Which type of charge is created in case of Immovable property: Mortgage
493. What is the limitation period for Demand Promissory Note: 3 years from
date of DPN
494. How much interest subvention is allowed to banks in respect of advance

made for cultivation of crop under Kisan Credit Card: 2% for loan up to Rs 3 lac.
495. What is net working capital: when current liabilities are more than current
assets.
496. A saving bank account becomes inoperative if it is not operated for: 2

years.
497. What is the transaction code for DD in MICR cheques: 16
498. For setting up of White Label ATMs, the net worth of the corporate must
be: 100 Crores
499. Failed ATM transactions are to be resolved within a maximum period of : 7

working days
500. For Speed clearing no charges should be levied in Saving accounts for
cheques up to: 1 lakh
????????????????????
?????????
[12/24, 7:42 PM] P.V.KRISHNA RAO: ??????????????????
501. National Electronic Funds Transfer (NEFT) - what is the minimum and
maximum amount: There is no cap on minimum and maximum amount.
502. Who can be a nominee? Only an individual including NRI can be a

nominee
503. Financial Inclusion is: The delivery of banking services at an affordable

cost to the vast sections of disadvantaged and low income group
504. For Ultra Small Branches, a designated officer will visit the village on a
prefixed date and time every ______with laptop and will be connected to Bank's
central server (CBS): Week
505. Loans to farmers up to ___against pledge/ hypothecation of agriculture

produce for a period not exceeding 12 months is classified as direct agriculture:
50 lakh
506. Loan to Small service enterprise granted from 13.11.2013 to 31.3.14 is

part of priority sector provided loan does not exceed: Rs 10 crore
507. Housing Loans up to _____to individuals for purchase/construction of

dwelling unit per family in Metro centres with population above ten lakh and
Rs.15 lakh in other centres excluding loans granted by banks to their own
employees are treated as priority sector: 25 lakh[this norm is changed]
508. How much per cent of advance to micro and small enterprises should go
to the micro enterprises: 60%
509. Income ceiling for assistance for projects under PMEGP is: There is no
income ceiling
510. Margin under Swarna Jayanti Shahari Rojgar Yojana under Urban Self
Employment Programme (USEP) is: 5%
511. Maximum guarantee cover under CGTMSE for MSE for loans up to Rs 5 lac
is: 85% of amount in default with a maximum of Rs 425,000
512. No margin and collateral security is required to be brought by the

borrower for the educational loans up to ____: 4 lakh
513. In Model Educational Loan Scheme prepared by IBA, repayment of the

loan starts after ____from the date of completion of course or 6 months from
employment whichever is earlier: 12 months
514. Banks lending to short term agricultural credit are eligible to claim 2%
Interest Subvention from Government of India. Further, farmers who repay their
loans in time are eligible for another interest subvention of: 3%
515. What is the rate of interest subvention provided by Government to all

Scheduled Commercial Banks in respect of rupee export credit (Pre & Post
shipment) extended to employment oriented export sectors such as Handicrafts,
Handlooms, Carpets, Readymade garments, processed agriculture products,
Sports goods, Toys and SME : 3%
516. Banker Customer Relationship in deposit accounts is: Debtor, Creditor
517. KCC cannot be used for raising loan for: purchase of Gold Coin from a
Bank
518. In FEMA, M stands for : Management
519. What is the nature of the liability of partners in Partnership? Joint and
several
520. The account becomes NPA if CC/OD limits are not renewed or reviewed
within ____days from due date of renewal: 180 days
521. On which of the following advances, NPA norms are applicable? Term
Deposits, NSCs, KVPs, IVPs, LIC policies, Government securities: Government
securities
522. CDR scheme will not apply to accounts involving : only one financial
institution or one bank
523. Basel-II has how many pillars: 3 (Minimum capital requirements,

Supervisory Review and Market Discipline)
524. Risk weight for loan up to Rs 75 lakh is: 50%[NORM CHANGED]
525. Risk weight for loan more than Rs 75 lakh is: 75%
526. What is the maximum limit on Subordinated debt instruments as part of

Tier II capital?: 50% of Tier I capital
527. FIR is required to be filed in case where the counterfeit notes found
are___in a single remittance: Five pieces and above
528. RBI introduced scheme in the month of September 2008 for providing
incentives to banks for extending enhanced services in the area of
mutilated/soiled notes & coin distribution and levying penalties for deficiency in
providing services to members of the public Distribution of Coins over the
counter is: 25/- per bag
529. Committee on Financial Inclusion was headed by: C.Rangarajan
530. Central Registry of Securitization Asset Reconstruction and Security

Interest of India (CERSAI) is a government company licensed under section 25 of
the Companies Act 1956, has been incorporated to operate and maintain the
Central Registry under the provisions of: SARFAESI Act 2002
531. _____is a money market instrument, which enables collateralized short

term borrowing through govt.securities: Repo Transaction
532. Banking Ombudsman (BO) Scheme is for: Redressal of grievances against

deficiency in banking services
533. While disposing off the request under RTI Act, CPIO is required to mention
clearly the time limit of ------------- and address of the Appellate Authority to the
complainant: 30 days
534. What is full form of FDI: Foreign Direct Investment (FDI)
535. For seasonal industries (tea,sugar etc,.. industries) what type of method is
used to sanction working capital requirements: Cash Budget Method
within ____ days from the date on which the bank receives letter of acceptance of
Award by complainant: 30 days
537. Which of the following has been constituted for Rural Development?:
NABARD
538. Limit sanctioned is Rs 1.40 Lac. Margin 30%. The party wants to avail
maximum limit. The amount of stock required will be : Rs 2 lac
539. Loans up to ____ given to Micro and Small enterprises are covered under
guarantee scheme of CGTSI : Rs 100 lac.
540. A unit in manufacturing sector is treated as micro unit if its original

investment in Plant & Machinery does not exceed: Rs 25 Lac.
541. Collateral Security means : Security provided by the borrower in addition

to the primary security.
542. The purpose of introducing KYC norms is : Identification of customers to

prevent money laundering or terrorism finance.
543. Customers Day is held on 15th of every month.
544. What is the advantage to banks for referring cases to Lok Adalats : No
court fee
545. What is the relationship between customer and bank when he deposits
articles for safe custody : Bailor & Bailee
546. What is the relationship between customer and banker in case an account
is overdrawn : Debtor & Creditor
547. Life certificate is obtained from all pensioners every year in the month of :
November
548. Process of changing physical securities into electronic form is called :

Dematerialisation
549. What is the amount of service tax including education cess which is
payable by banks on the service charges charged by them : 12.36%[NOW 14%]
550. If a person of more than 60 years wants that no tax should be deducted at
source from the interest payable to him, he should submit form no _____ to the
bank :15 H
551. The period for which NRE term deposits can be opened is : Minimum 1
year, Max Bank discretion
552. For banks, export credit insurance support is available from : ECGC
553. R Returns are to be submitted : Fortnightly (on 15th and last day of the
month)
554. The branches which can undertake forex transactions are called as : B
category branches
555. The process of making computer system ?ON' is called as : Booting
556. E commerce is related to : conducting business on the internet
557. A bill of exchange which has been executed outside India is to be

stamped as per Indian Law within __ months from its receipt in India : None of
these ( It should be stamped by the first holder before he presents the same for
acceptance or payment or endorses, transfers or otherwise negotiates the same
in India.
558. The charge of Mortgage can be created on : Land
559. Equitable Mortgage refers to: Mortgage created by deposit of title deeds.
560. Lien refers to: Right of creditor to retain possession of goods till debts due
to him are paid by debtor.
561. Transferable credit can be transferred to other beneficiaries : Once but to

one or more beneficiary
562. Exchange Control is exercised by : RBI
563. Noting and protesting is necessary in the case of: Foreign bills if required
by the law of the foreign country.
564. CRR is defined in : Section 42(1) of the RBI Act for scheduled banks
565. SLR is defined in: Section 24 of the Banking Regulation Act ( Currently it is
21.5% of net demand and time liabilities)
566. A return is sent to RBI every alternate Friday giving details of demand and
time liabilities for: Calculation of CRR
567. In case of term deposits, maximum amount of principal and interest which
can be paid in cash is: less than Rs20,000.
568. What is the target for Public sector banks for advances to weaker sections
as percentage of Priority Sector : 25% (10% of Adjusted net bank credit)
569. Inclusion of banker's name in a crossing will make it: Special Crossing
570. Changing the contents of a cheque so that its legality or its character is
changed is referred as : Material Alteration.
571. Cancellation of crossing can be done by: Drawer under his full signatures
572. Once a bearer is always a bearer refers to: Cheques only.
573. Protection to collecting banker is available in the case of : Crossed

cheques
574. An account will be classified as NPA if the Drawing power is allowed for
more than 90 days on the basis of a stock statement which is: more than 3
months old.
575. The assets from which there is no income generation are called as : Non
Performing Assets.
576. The liability which is payable within one year is called as : Current Liability
577. Which is correct regarding nomination facility? : It is available in deposit

accounts of individuals.
578. As per section 85(2) of the NI Act, protection is available to paying banker
if cheque originally payable to bearer : is paid to bearer.
579. Which bill is required to be stamped? Usance Bill of Exchange
580. Charge in the case of Hypothecation is : Floating Charge
581. IRDA refers to : Insurance (Insurance Regulatory & Development

Authority)
582. Grace period is allowed in the case of : Usance Bills
583. Power of Attorney should be stamped : As per state stamp rules.
584. Rate of interest on saving deposits is determined by : Banks themselves
585. In a saving deposit account, name of nominee can be mentioned on the

pass book: if the customer agrees for the same
586. A computer network in a single building is called as :Local Area Network
587. Licence for starting a new commercial bank is given by : RBI
588. RBI rediscounts bills of the banks at : Bank Rate
589. Which charge does not require registration in case of limited companies :
Pledge
????????????????????Wishing you " All the Best "
?????????

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Q) 1.

Q) 2. Which of The following states has launcghed Panch Parmeshwar Yojana

Q) 3. Rajender had field a complaint with Banking Ombudsman but is not

Q) 8. A commercial bank will launch a medium term note (MTN) programme to

Q) 11. Approximately, what fraction of India?s total exports is contributed by the

Q) 12. The appointments of Banking Ombudsman will be carried out by which of

Q) 14. After the recommendations of which of the following committee the

Q) 19. What is the Cash Reserve Ratio (CRR) at present?

Q) 20. The first stock exchange in india was established in?

Q) 27. Which of the following statement is true about foreign banks?

Q) 29. Which of the following banks are planning to launch ?by-invitation-only?

Q) 30. FDI refers to?

Q) 31. Bring out the only incorrect statement:

Q) 32. What is a Repo Rate?

Q) 33. Which of the following cannot be called as a Debt Instrument as referred

Q) 34. What is Call Money ?

Q) 37. Bad advances of a Bank are called

2. ANBC: ADJUSTED NET BANK CREDIT

3. How is the computation of interest on savings bank deposits done by banks?

4. Whether banks can prematurely repay term deposits on their own?

Ans: Whenever the due dates fall on Saturday/Sunday/non-business working

6. Whether banks can accept interest free deposits?

7. Mortgage is defined under. Ans: Transfer of Property Act.

8. Short enquiry screen for loan : Ans: 10400

9. Which banks have been named by RBI as systematically important banks?

Ans: SBI and ICICI Bank

12. What is referred to as Blockchain?

Ans: Blockchain is the underlying technology or platform that supports and

16. What is the role of a negotiating bank?

Ans: It purchases the documents submitted by the beneficiary and effects

18. What is the documentary bill?

Ans: It is a bill of exchange accompanied by document of title to goods.

19. What do you understand by ?Actionable Claim'?

Ans: It is a debt not backed by any security either movable or immovable.

20. What is hypothecation?

21. Do banks grant any loan/overdraft to unregistered Societies/Clubs?

Ans: No, since such bodies do not have power to borrow.

a)The marketability of security offered.

b)Adequacy of margin on the advances

c)Liquidity relating to the securities.

d)All the above.

a)Securitisation and reconstruction of financial assets

b)Creation of security interest under the SARFAESI ACT.

25. Can the Banking Ombudsman act as an Arbitrator?

Ans: Execution of loan documents

28. Insurance business can be undertaken by banks as: (Ans:e)

a) Joint Venture b) Strategic Investment c) Corporate Agent d) Referral

29. Credit risk arises when: (Ans: d)

a) Internal processes b) People c) Systems d) External events e) All the above

31. "Three pillar approach" is a term used in: (Ans: b)

a) Basle I accord b) Basle II frame work

c) Banks' Balance Sheets to indicate three best efficiency Ratios

d) Capital Management to indicate three best characteristics of capital as

32. Call money refers to placement of funds repayable: (Ans:d)

b)In a week's time from the date of demand

c)After two working days from the date of demand

d)The next working day

e)None of the above.

33. What are Nostro & Vostro Accounts ?

Ans: A nostro account is maintained by an Indian Bank in the foreign countries

34. What is a Bank rate

35. What is a Repo?

Ans: Repo is "Repurchase Agreement. An agreement to sell a security for a