BANKING AWARENESS PRACTICE QUESTIONS FOR ALL BANK EXAMS

1. Which of the following institutions provides secured depository services?
a) NSE
b) NSDL
c) RBI
d) BSE
e) NPCI

2. While dealing with Foreign Exchange transactions "Multicurrency basket" means:
a) A number of international currencies to which the value of SDRs is linked
b) Selected international currencies to which the value of Asian Monetary Unit is linked
c) Number of major international currencies to which the external value of the Indian rupee is linked
d) The name given to a group of West European currencies
e) None of the above

3. Name of the Bank and CMD is given below. Which pair is not a correct one?
a) Allahabad Bank - Usha Anantha Subramanian
b) Andhra Bank - Suresh N Patel
c) Bank of India - Rajeev Rishi
d) Bank of Baroda - PS Jayakumar
e) Bank of Maharashtra - Ravindra Prabhakar Marathe

4. In banking parlance when a negotiable instrument is endorsed with notation "Sans recourse", it means:
a) Without liability to payment bank
b) Without physical touch
c) Without liability to me
d) Without liability to payee
e) None of the above

5. When the holder of an order cheque signs on the back of it , without specifying the person to
whom the amount is to be paid, it is called:
a) Full endorsement
b) Partial endorsement
c) Conditional endorsement
d) Restrictive endorsement
e) Bank endorsement

6. Mandate is an/a:
a) Stamped agreement
b) Unstamped agreement
c) Memorandum of agreement
d) Letter of consent for agreement
e) None of the above

7. Earlier Form 15G/15H submitted by the depositors to their bankers for not deducting TDS. These
forms so collected had to be sent to Income Tax Department. However as per revised procedure, banks will not send copy of form 15G/15 H to Income Tax Department but will retain the same with them for:
a) 2 years
b) 3 Years
c) 6 years
d) 7 years
e) 8 Years

8. Merchant bankers are:
a) Financial Brokers
b) Financial Intermediaries
c) Credit Appraisers
d) Underwriters
e) All of the above

9. Name the Chairman of Insolvency Bankruptcy Board of India?
a) Romesh Sobti
b) Madhusudan Sahoo
c) P. JayaRama Bhat
d) P. Mukherjee
e) V.G. Mathew

10. In which years RBI and SBI are nationalized respectively?
a) 1955, 1949
b) 1969, 1955
c) 1949, 1955
d) 1955, 1969
e) 1949, 1969

11. Non-profit organizations are categorized in which risk category as per new KYC(Know Your
Customer) and AML (Anti-Money Laundering) guidelines:
a) Low Risk
b) Medium Risk
c) Little Risk
d) High Risk
e) Very High Risk

12. As per Section 138 of N.I. Act, there is a provision of penalty:
a) If cheque given as gift is dishonoured
b) If signature of drawer do not tally with that is one on record
c) If cheque issued in discharge of a liability is dishonoured due to insufficient funds in the account
d) If the cheque has been presented to the paying banker within a period of 3 months from date written on it & is not honoured due to insufficient funds
e) c & d both

13. The reserve which is created out of the capital profit is known as capital reserve. Which of the
following items for part of Capital reserve?
a) Profit on revaluation of assets and liabilities
b) Profit on sale of assets & sale of shares and debentures
c) Profit on forfeiture of shares & redemption of debentures
d) Profit on purchasing running business
e) All the above

14. Kisan credit Cards are issued to farmer____:
a) To withdraw money from ATM
b) To purchase farm equipments
c) To purchase agricultural implements on credit from dealers
d) To meet their cultivation needs and non-farm requirements, including purchase of inputs and other short-term requirements and working capital requirements for allied activities
e) None of the above

15. At present lending rate is calculated on the basis of MCLR. In MCLR 'M' Stands for:
a) Marginal
b) Macro
c) Micro
d) Market
e) Margin

16. Holders of 'Basic Savings Bank Deposit Account' will not be eligible for opening any other
savings account in that bank. If a customer has any other existing savings account in that bank, he will be required to close it within:
a) 30 days from the date of opening a 'Basic Savings Bank Deposit Account'
b) 45 days from the date of opening a 'Basic Savings Bank Deposit Account'
c) 60 days from the date of opening a 'Basic Savings Bank Deposit Account
d) 90 days from the date of opening a 'Basic Savings Bank Deposit Account'
e) 120 days from the date of opening a 'Basic Savings Bank Deposit Account'

17. Credit Rating Agencies in India are regulated by:
a) RBI
b) CRISIL
c) Central Government
d) IDRBT
e) SEBI

18. What is the main objective of setting up of CERSAI?
a) Increasing revenue of Central Govt.
b) Preventing frauds
c) To compile statistics relating to total immovable properties in the country
d) To ensure whether a Company has registered with ROC properly or not
e) None of the above

19. Consequent upon merger of 5 subsidiaries and Bharatiya Mahila Bank into State Bank of India.
which of the following statement is correct?
a) This merger has catapulted SBI into one of the top 50 global banks (up from 55th position in 2016)
b) SBI's balance sheet size is Rs.33 lakh crore
c) The total number of branches and ATMs of SBI has become 24,017 and 59,263 respectively
d) The customer base of SBI is now over 42 crore
e) All the above

20. Google global CEO Sundar Pichai has launched training programme called ________ for
Small and Medium Businesses (SMBs) and startups to go digital in India in partnership with Ministry of Information and Technology and the Federation of Indian Chambers of Commerce and Industry.
a) "Digital Unlocked"
b) "Wallet Unlocked"
c) "SME unlocked"
d) " Unlocking SME Potential"
e) None of the above

21. Which Bank's MD and CEO has been awarded the 'Woodrow Wilson Award' by the Woodrow Wilson Centre in Washington DC:
a) HDFC
b) YES bank
C) ICICI
d) SBI
e) Punjab National Bank

22. Match the following mergers of banks.
List I
A. Centurion Bank of Punjab
B. Bank of Rajasthan
C. Global Trust Bank
D. Nedungadi Bank
List II
1. ICICI Bank
2. Punjab National Bank
3. HDFC Bank
4. Oriental Bank of Commerce
a) A - 4; B - 1; C - 2; D - 3
b) A - 3; B - 4; C - 1; D - 2
c) A - 2; B - 1; C - 4; D - 3
d) A - 3; B - 1; C - 4; D - 2
e) None of the above

23. Which document stipulates internal rules of a company?
a) Memorandum of Association
b) Prospectus
c) Articles of Association
d) Declaration
e) Special Resolution

24. Banks Board Bureau (BBB) has recommended to the government names of 15 general managers of various public sector banks for appointment as executive directors. Who is the chairman of Banks Board Bureau?
a) Vinod Rai
b) Chandrashekhar Ghosh
c) Mukesh Sharma
d) K.B. Nagendra Murthy
e) Arvind Panagariya

25. "Aapka Bhala, Sabki Bhalai"is the slogan of:
a) Allahabad Bank
b) Federal Bank
c) ICIC
d) HDFC
e ) Bandhan Bank

26. Which of the following statements are correct regarding NRO Non Resident Ordinary Rupee Account?
a) Mainly used for local transactions in India
b) If a citizen becomes an NRI, the existing account will be converted into NRO
c) Can be opened in the form of Savings, Current, Recurring or Fixed Deposit account
d) Can be opened jointly with Resident Indian
e) All the above

27) A scheme named ___ offers a long term subscription to Pradhan Mantri Suraksha Bima Yojana with attached Fixed Deposit.
a) Suraksha Deposit Scheme
b) Suraksha Insurance Cover
c) Jeevan Suraksha Yojana
d) Suraksha Cover
e) Suraksha Plus Scheme

28. The Maximum number of members in a Private limited company is:
a) 50
b) 20
c) 10
d) 200
e) No limit

29. With which of the following is SARFAESI Act 2002 related?
a) Recovery of bad loans
b) Regulation of Foreign Exchange
c) Fixation of interest rates
d) Acquisition of small banks
e) None of the above

30. ________ is money whose face value exceeds its cost of production.
a) Production Money
b) Token Money
c) Paper Money
d) Black Money
e) Call Money


ANSWERS:
1) b 2) c 3) c 4) c 5) e 6) b 7) d 8) b 9) b 10) c
11) d 12) e 13) e 14) d 15) a 16) a 17) e 18) b 19) e 20) a
21) c 22) d 23) c 24) a 25) e 26) e 27) a 28) d 29) a 30) b

BANKING AWARENESS PRACTICE QUESTIONS

1. Who is the present Managing Director & CEO of Bank of India?
a) Dinabandhu Mohapatra
b) R Subramania Kumar
c) Sunil Mehta
d) N.Kamakodi
e) Neelam Damodharam

2. RBI has increased the capital requirement for Asset Reconstruction Companies (ARC) From the existing Rs. 2 crore to______ by March 2019.
a) Rs. 5 crore
b) Rs. 25 crore
c) Rs. 100 crore
d) Rs. 150 crore
e) Rs. 200 crore

3. Time limit for settlement of claims in Deceased cases:
a) 30 days from the date of death
b) 15 days from the date of death
c) 15 days from the date of submission of all the documents
d) 30 days from the date of submission of all the documents
e) 7 days from the date of death

4. Under Atal Pension Yojana (APY), the Central Govt will contribute 50% of total contribution or Rs. 1000 whichever is lower, to eligible subscriber's A/c, for a period of ___ years.
a) 2 years
b) 3 years
c) 4 years
d) 5 years
e) 6 years

5. ACH is a system that monitors and administers the processing of cheques and fund clearance among the banks. What is the full form of ACH.
a) Automatic Clearing House
b) Additional Clearing House
c) Autonomous Clearing House
d) Automated Clearing House
e) Authorised Clearing House

6. Mission Indra Dhanush aims to achieve full immunization of more than 90% children by _____
a) 2018
b) 2019
c) 2020
d) 2021
e) 2022

7. MS Dhoni is having SB account (Balance Rs. 80,000) and Fixed Deposit Account (Balance Rs. 1,20,000) in a Bank which is covered under DICGC. If that bank is to be closed for any reason whatsoever, What is the maximum amount MS Dhoni will be reimbursed by DICGC?
a) Rs.1,80,000
b) Rs. 1,00,000
c) Rs. 2,00,000
d) Rs. 1,20,000
e) None of the above

8. Main parties in case of Agency Agreement is:
a) Debtor - Creditor
b) Bailor - Bailee
c) Lessor - Lessee
d) Principal - Agent
e) Trustee - Beneficiary

9. Which of the following is/are correct regarding investment to reduce the risk of adverse price movements in an asset?
a) Hedge
b) SPV
c) MBS
d) MCLR
e) b & c

10. The term "Allonge" refers to a sheet of paper attached:
a) To a negotiable instrument for the purpose of making endorsement thereon when there is no space on the instrument
b) To a Non-Judicial Stamp paper
c) To a mortgage deed for the purpose of witness
d) To the Sanction Advice of the loan intimating the terms of sanction
e) All the above

11. A mutual fund is set up in the form of:
a) A trust
b) A Company incorporated under the Indian Companies Act
c) An Act of Parliament
d) A Limited liability partnership
e) None of the above

12. What is the full form of ARM in case of Loans against mortgage of properties?
a) Additional Rate Mortgages
b) Advance Rate Mortgages
c) Adjustable Rate Mortgages
d) Appropriate Rate Mortgages
e) Anomalous Rate Mortgages

13. Name the only Private Sector Bank in the country which is designated as RBI's agent for banking business and carries out the banking business of Central Government?
a) HDFC
b) ICICI
c) J&K Bank
d) YES Bank
e) AXIS Bank

14. 'Good People to Bank With' is the tagline of:
a) United Bank of India
b) UCO Bank
c) Union Bank of India
d) Indian Overseas Bank
e) Vijaya Bank

15. AMRUT is urban transformation scheme with the focus of the urban renewal projects to establish infrastructure that could ensure adequate robust sewerage networks and water supply. Expand AMRUT.
a) Atal Mission for Rejuvenation and Urban Transformation
b) Atal Mission for Reconstruction and Urban Transformation
c) Atal Mission for Rural and Urban Transformation
d) Awas Mission for Rural and Urban Transformation
e) None of the above

16. The Headquarters of Security Printing and Minting Corporation of India Ltd (SPMCIL) is located in:
a) New Delhi
b) Bengaluru
c) Chennai
d) Trivandrum
e) Hyderabad

17. Deposit Insurance and Credit Guarantee Corporation (DICGC) is a wholly owned subsidiary of:
a) Central Government
b) Reserve Banks of India
c) NABARD
d) SIDBI
e) None of the above

18. With an aim to strengthen Regional Rural Banks, as per the Bill introduced in the Lok Sabha during 2013, the authorized capital of the Regional Rural Banks to be raised to Rs. _____
a) 1000 crore
b) 500 crore
c) 2500 crore
d) 50 crore
e) 200 crore

19. Banks have to submit Suspicious Transactions Report(STR) to FIU-IND (Financial Intelligence Unit - India) as a part of antimoney laundering measures where the transactions:
a) Appears to be unusual or unjustified complexity
b) Appears to have no economic rationale or bonafide purpose
c) Source of funds are doubtful
d) Are not in commensurate with the business of the customer
e) All the above

20. Which of the following points are true with respect to PM Garib Kalyan Yojana?
a) The deposits under PMGKY shall not bear any interest
b) The Bonds Ledger account shall not be tradable
c) No commission / agency bank charges will be paid to the banks for accepting deposits under the scheme
d) The transferability of Bond Ledger Account shall be limited to nominee or to the legal heir of an individual holder, in the event of his death
e) All of the above

21. What type of loan is granted by banks for purchase of white goods?
a) Loan given for purchase of cotton seeds
b) Mortgage loan
c) Consumer durables loan
d) Home loan
e) Dairy loan

22. Which of the following is True regarding QR Code?
a) QR stands for Quick response Code
b) It is a payment transfer mechanism
c) It eliminates the need for PoS machines at a merchant outlet
d) There is no problem of loss of card or card expiry problems
e) All the above

23. Under Rural and Urban Housing for poor, PM announced two new housing schemes for the urban
poor recently. Under Pradhan Mantri Aawas Yojana (PMAY), the poor and middle class in cities
will get ___ exemption on interest for home loans up to Rs. 9 lakh and ___ exemption for home loans up to Rs.12 lakh.
a) 3%; 4%
b) 4%; 3%
c) 2%; 3%
d) 4%; 5%
e) 5%; 6%

24. Lien is a/an _______ of the creditor to retain possession.
a) Right
b) Obligation
c) Instrument
d) Interest
e) None of the above

25. The 'Banker's 'Fair Practice' code was brought out in June 2004 by:
a) IBA
b) RBI
c) Government of India
d) Banking Ombudsman
e) NABARD

26. In a Hindu undivided family the business of the family is managed by:
a) Karta
b) Proprietor
c) Partner
d) Director
e) Co-Parcenors

27. A Public Limited Company shares are:
a) Not transferable
b) Transferable
c) The Act is silent
d) Transferable only if they are purchased in Primary Market
e) a & d

28. With an objective to give boost to the small entrepreneurs, credit guarantee for small businesses
(CGTMSE) has been enhanced from Rs. 1 crore to ______
a) Rs. 1.5 crore
b) Rs. 2 crore
c) Rs. 3 crore
d) Rs. 4 crore
e) Rs. 5 crore

29. Which of the following is not a Material Alteration?
a) Alteration of the date
b) Alteration of the sum payable
c) Alteration of Signature (Forgery)
d) Alteration of the name of payee
e) Alteration of the crossing

30. Under what circumstances banks can with held payments of customers?
a) When a customer is declared insolvent by the court
b) When a company goes on liquidation since the rights of account rests with the official liquidator
c) When the customer become insane
d) When the cheque is countermanded
e) All the above

31. A Fund of Funds is a scheme that invests primarily in:
a) Money market instruments
b) Other schemes of the same mutual fund or other mutual funds
c) The bullion market
d) The Government Securities
e) Primary market only

32. Which of the following are the advantages of Cheque Truncation System (CTS)?
a) A Faster clearing cycle to provide better customer service
b) Minimize transaction costs and loss of instruments can be avoided
c) Additional Security Features
d) Frauds can be eliminated
e) All the above

33. The Indian Banking System is regulated in terms of the provisions of ____ Act, 1934 and ___
a) Banking Regulation Act, 1949
b) Negotiable Instruments Act, 1881
c) Payment and Settlement Act, 2007
d) Prevention of Money Laundering Act, 2002
e) None of the above

34. When affairs of a bank is conducted in such a manner that gives a fair deal to all the stake holders, it is called:
a) Risk Management
b) Effective Management
c) Total Management
d) Corporate Governance
e) Mirror Management

35. The type of arrangement under which a bank pays the seller the value of the bill and later collects it from the buyer on the due date is called_____
a) Bill discounting
b) Factoring
c) Forfaiting
d) Deferred Collection
e) None

ANSWERS: 
1) a 2) c 3) c 4) d 5) d 6) c 7) b 8) d 9) a 10) a
11) a 12) c 13) c 14) c 15) a 16) a 17) b 18) b 19) e 20) e
21) c 22) e 23) b 24) a 25) a 26) a 27) b 28) b 29) c 30) e
31) b 32) e 33) a 34) d 35) a

BANKING AWARENESS PRACTICE QUESTIONS FOR BANK EXAMS

1. First bank started in India with solely Indian capital investment is:
a) Bank of Baroda
b) Punjab National Bank
c) Punjab & Sind Bank
d) Central Bank of India
e) Canara Bank

2. The banker acts as a Bailee and the customer as Bailor, this relationship is applicable:
a) when a bank lends funds to a corporate customer
b) when a bank accepts US$ FCNR deposits form a NRI customer
c) when a customer operates a safe deposit locker
d) when a customer keeps articles in safe custody with a bank
e) None of the above


3. Which of the following is not a financial intermediary?
a) Banks
b) Financial institutions
c) Mutual funds
d) Non-bank finance companies
e) Companies engaged in manufacturing of good

4. Acustomers lost the Fixed Deposit Receipt issued by the bank. To obtain a duplicate FD he needs to furnish:
a) A Promissory note
b) A collateral security
c) A Letter of Credit
d) An Indemnity bond
e) Counter guarantee by the customer

5. Reserve Bank of India's functions are classified into:
a) Supervisory & Regulatory
b) Promotional & Developmental 132
c) Refinance Activities
d) a & b only
e) a, b & c

6. The scope of activities undertaken by the business correspondents will not include:
a) Disbursal of small value credit
b) Recovery of principal/collection of interest
c) Collection of small value deposits
d) Payment of money on demand drafts not exceeding Rs. 1,000
e) None of the above

7. In strategic Alliance, the alliance partners:
a) Merge with each other 220
b) One partner acquires the other
c) Remain separate entities
d) Amalgamate with one another
e) None of the above

8. A company which pools money from investors and invests in stocks, bonds, shares is called:
a) A bank
b) An insurance company
c) Bank assurance
d) Mutual Fund
e) None of the above

9. Mr. X who is an Ordinary SB account holder of a branch wants to nominate Mr. Y, an U.S. national, who is his friend. Is that allowed?
a) Yes it is freely permitted
b) Yes it is freely permitted, but at the time of settlement of claim and repatriation to the
nominee, branch has to take RBI permission
c) Yes it is freely permitted, subject to Regional office approval
d) Yes it is freely permitted, subject to CO approval
e) No it cannot be allowed

10. In a cheque, the word "Order" is changed to "bearer" by the holder of the cheque. This is called as:
a) Endorsement
b) Material alteration
c) Crossing
d) Special Crossing
e) Allonge

11. If a customer dies without leaving a will and the court appoints a person to handle the customer's Property. Such a person is called as:
a) An administrator
b) An executor
c) A liquidator
d) A successor
e) An Authorised Officer

12. Garnishee order is issued by:
a) Judgment Debtor
b) Judgment Creditor
c) Reserve Bank of India
d) The Court
d) Income Tax Department

13. One of the NRI customers wants to place FCNR deposits in Canadian $ with a bank. Can the
account be opened in Canadian Dollars?
a) Yes, his request can be accepted and open a FCNR a/c
b) No, Bank can not accept his request to open FCNR a/c in Canadian $
c) Will inform the customer to place FCNR in any one of the currencies (US$/ GBP/ JPY/ EUR)
d) Can open after seeking permission from Head Office
e) Can open after obtaining clearance from RBI

14. Which of the following is the the First Paper Currency Note issued by the RBI bearing the portrait of King Geoge VI?
a) Two Rupee Note
b) Five Rupee Note
c) Ten Rupee Note
d) Twenty Rupee Note
e) Fifty Rupee Note

15. Which of the following is the scheme for skill development of minorities?
a) Padho aur kamao
b) Seekho aur kamao
c) Kamao aur jiyo
d) Padho aur Seekho
e) None of the above

16. Capital adequacy is worked out based on:
a) Total demand and time liabilities
b) Net demand and time assets
c) Risk weighted assets
d) Risk weighted liabilities
e) None of the above

17. A Co-Operative Bank operating in different States are regulated by:
a) State Co-Operative Societies Act
b) Banking Regulation Act
c) Multi Unit Co-Operative Societies Act
d) Banking Laws (applicable to Co-Operative Societies)
e) RBI Act 1934

18. If a cheque is accidentally torn by the drawer, the cheque ___
a) Can't be paid
b) Can be paid, if the holder confirms the mutilation
c) Can be paid, if the drawer confirms the mutilation and if otherwise in order
d) Can't be paid, even if the drawer confirms the mutilation and otherwise in order
e) None of the above

19. Tele banking is not based on:
a) Virtual banking,
b) Voice processing,
c) Online banking
d) a & c
e) None of the above

20. Cash payment of Term deposits is possible, if the amount doesn't exceed Rs.:
a) 20,000
b) 25,000
c) 30,000
d) 40,000
e) 50,000

21. Balance in a current account is classified as:
a) Hybrid deposit
b) Term deposit
c) Demand deposit
d) Flexi deposit
e) None of the above

22. The rate at which domestic currency can be converted in to foreign currency and vice-versa is known as:
a) LIBOR
b) Base Rate
c) Repo Rate
d) Exchange Rate
e) Inter Bank Call Money Rate

23. Hypothecation is applicable in the case of ____.
a) Movable goods
b) Immovable property
c) Loan against Insurance Policies
d) Corporate guarantee
e) Gold Loan

24. The minimum percentage of Priority Sector advances to be maintained by foreign banks in India with less than 20 branches is __.
a) 40%
b) 18%
c) 32%
d) 50%
e) 60 %

25. One of the State Government avails of a temporary financial assistance from Reserve Bank of
India. This type of finance is called:
a) Overdraft
b) Temporary loan
c) Short term finance
d) Ways and Means advance
e) Repo

26. Which one of the following is known as 'Demat' account?
a) Account in which shares are held in electronic form
b) Other than those given as options
c) Account allowed to be operated by guardian of minor
d) Account operated by business correspondents in rural
e) None of the above

27. External commercial borrowings are governed under:
a) Foreign Exchange Regulation Act
b) Securitisation and Reconstruction of Financial assets and enforcement of security interest Act
c) Debt Recovery Tribunal Act
d) Foreign exchange management Act
e) None of the above

28. Maximum Bank Rate that can be declared by the Reserve Bank of India is:
a) 6%
b) 20%
c) 25%
d) 1% over MCLR
e) No such ceiling

29. Obligation of a Banker to maintain secrecy is applicable to:
a) Only in case of existing deposit accounts
b) Only in respect existing loan accounts
c) Only in case of closed accounts
d) All types of deposit/loan accounts (existing/closed)
e) No need of maintaining secrecy to exhibit transparency in banking transactions

30. A mortgage involves:
a) Transfer of ownership
b) Transfer of interest in Immovable property
c) Transfer of possession
d) a & c
e) None of the above

31. Bank A allows one of its clients to withdraw against clearing of a cheque. The banker is called as:
a) Collecting Banker
b) Holder in due course
c) Holder for value
d) Reimbursement banker
e) Paying Banker

32. As per the provisions of NI Act,1881 a banker gets protection for payment of a cheque only if it is a:
a) Holder in due course
b) Payment in due course
c) Holder for value
d) Not Negotiable Instrument
e) All of the above

33. SARFAESI Act 2002 is applicable to:
a) All states excluding Jammu and Kashmir
b) All states including Jammu and Kashmir
c) All Banks including Foreign Banks and RRBs
d) Only Union Terrirories
e) b & c

34. Management of a Bank vests with:
a) Reserve Bank of Indian
b) Asset Liability Committee (ALCO)
c) Board of Directors
d) Share Holders
e) a & d

35. Rajender Singh, gives a written stop payment instructions of a cheque Rs. 50/- to his banker.
This should be treated by the bank as:
a) A request from Sekhar
b) An intimation from Sekhar
c) An advice from Sekhar
d) A mandate from Sekhar
e) None of the above as the stop payment is for a small amount

36. Banks can grant loans against:
a) LIC Policy
b) CDs
c) FD issues other bank
d) Mutual fund
e) All the above

ANSWERS: 
1) b 2) d 3) e 4) d 5) e 6) d 7) c 8) d 9) b 10) b
11) a 12) d 13) a 14) b 15) b 16) c 17) c 18) c 19) d 20) a
21) c 22) d 23) a 24) c 25) d 26) a 27) d 28) e 29) d 30) b
31) c 32) b 33) b 34) c 35) d 36) a

BANKING AWARENESS PRACTICE QUESTIONS FOR BANK EXAMS

1. The Government share holding in National Investment Infrastructure Fund (NIIF) is going to be ___:
a) 40 %
b) 49%
c) 50%
d) 51%
e) 30%

2. Can nomination be made by an illiterate depositor?
a) Yes, by affixing his Thumb Impression without witness
b) Yes, by affixing his Thumb Impression with one witness
c) Yes, by affixing his Thumb Impression with two witnesses
d) No, such nomination may be under influence may not hold legal validity
e) At the discretion of the Branch Head

3. EXIM bank was established in the year?
a) 1957
b) 1992
c)1982
d) 1981
e) 1983

4. In 'Small Accounts' , balance at any point of time should not exceed ______:
a) Rs.50,000
b) Rs.1,00,000
c) Rs.10,000
d) Rs.25,000
e) None of these

5. As per RBI directives, banks are allowed opening a minor account subject to the following conditions. Which among the following is correct?
a) Only fixed, savings and recurring deposits accounts can be opened
b) Mother can also be accepted as a guardian
c) The accounts can also be opened in the guardianship of the mother, even if the father of the minor is living
d) Only a & b
e) All a, b & c

6. National Housing Bank monitors the performance of ___:
a) Liberalized Finance Scheme
b) Golden Jubilee Rural Housing Finance Scheme
c) Energy Efficient Housing Finance Scheme
d) Finance scheme for indirect loans
e) None of the above

7. Which among the following made the initial contribution for setting up Financial Inclusion
Fund and Financial Inclusion Technology Fund?
a) Government of India, NABARD and RBI
b) NABARD, UTI and RBI
c) SIDBI, Government of India and IDBI Bank
d) SIDBI, NABARD and UTI
e) NABARD, RIDF, RBI

8. National Housing Bank, a wholly- owned subsidiary of RBI started its operations from ___:
a) July, 1982
b) July, 1988
c) April, 1980
d) March, 1971
e) March, 1983

9. The Maturity period of Certificate of deposits issued by banks is seven days to one year, whereas
the certificate of deposits issued by Financial Institutions should be not less than One year and not exceeding ___:
a) 2 years
b) 3 years
c) 4 years
d) 6 years
e) None of the above

10. The Minimum capital requirement as per the final guidelines for Universal Banks is __:
a) Rs. 500 crore
b) Rs. 200 crore
c) Rs. 300 crore
d) Rs. 100 crore
e) Rs. 1000 crore

11. Which of the following statement is wrong relating to SIDBI.
a) SIDBI means Small Industries Development Bank of India
b) It was established on April 2, 1990
c) It is the principal financial institution for the promotion, financing and development of industry in the small-scale sector
d) Its Head Office is in Hyderabad
e) It has floated Credit Guarantee Fund Trust for Micro and Small Enterprises

12. Which of the following is a specific division of banking related to the creation of capital for other
companies, governments and other entities?
a) Merchant banking
b) Investment banking
c) Commercial banking
d) Wholesale banking
e) None of these

13. Name the first country which introduced plastic currency notes?
a) USA
b) UK
c) Russia
d) Australia
e) Germany

14. Authorized Dealers for foreign exchange transactions are appointed by:
a) Reserve Bank of India
b) Government of India
c) Individual Banks
d) FEDAI
e) None of the above

15. In terms of RBI Guidelines Banks should report credit information to Central Repository of
Information on Large Credits (CRILC) of the borrowers having aggregate fund based or non
fund based exposure of ____ once in a quarter.
a) Rs. 3 Crore and above
b) Rs. 5 Crore and above
c) Rs. 7 Crore and above
d) Rs. 8 Crore and above
e) Rs. 1 Crore and above

16. Which of the following loans are less risky from the bankers point of view?
a) Housing loans
b) Vehicle loans
c) Personal Loans
d) Credit Card advances
e) b & c

17. Insurance Regulatory and Development Authority of India was constituted in the year___:
a) 1938
b) 1971
c) 1993
d) 1999
e) 2000

18. Rajkiran Rai G will be taking charge as Managing Director & CEO of _____ from 1.7.2017
a) Union Bank of India
b) Syndicate Bank
c) Uco Bank
d) United Bank of India
e) Vijaya Bank

19. Interest Rate Risk in Banking Book (IRRBB) refers to which of the following?
a) Companies accounts books
b) Current or prospective risk to a bank's capital and earnings, arising from adverse movements in interest rates that affect banking book positions
c) Government accounts books
d) NGOs books
e) None of these

20. Under the Direct Benefit Transfer (DBT) in fertilizer sector, the subsidy will be released to whom?
a) Milk vendors
b) The fertilizer companies instead of the beneficiaries, after the sale is made by the retailers to the beneficiaries
c) NGOs
d) Gram Panchayats
e) None of these

21. When certain projects are not commercially viable Government may go in for funding
Public Private Partnership(PPP). Such fund is called as ___:
a) Bridge funding
b) Viability gap funding
c) Bonus funding
d) Premium funding
e) Ways and means funding

22. Balance in which of the following account is not repatriable?
a) NRO
b) FCNR
c) NRO
d) b & c
e) All the above

23. When a bank fails causing instability in the financial system, such risk is called ____:
a) Systemic Risk
b) Market Risk
c) Credit Risk
d) Operational Risk
e) Systematic Risk

24. Normally banks will not give big ticket loans for longer tenures as it may lead to:
a) Insolvency
b) Liquidation
c) Asset-Liability mismatch
d) Bank Run
e) All the above

25. Which of the following is not a credit facility extended for short duration?
a) Bridge Loan
b) Term Loan
c) Commercial Paper
d) Bill Discounting
e) None of the above

26. Sometimes after disbursing the loan, banks will give reasonable time to customers to start repayment of loan. Such repayment facility is known as ____:
a) Amortization
b) Leverage
c) Balloon payment
d) Moratorium
e) Bullet payment

27. RBI regulates ceiling limit of interest for _____ deposits.
a) Savings
b) Recurring
c) Fixed
d) FCNR(B)
e) None of the above

28. GSTN (Goods and Service net work) is managed by?
a) Tech Mahendra
b) Wipro
c) Infosys
d) TCS
e) HCL Technologies Ltd

29. Which of the following takes care of export credit risks?
a) ECGC
b) GIC Re
c) EXIM Bank
d) RBI
e) DGFT

30. When the window for granting licenses is open through out the year, it is categorized as:
a) Open-tap Licensing
b) Off-tap Licensing
c) On-tap Licensing
d) For-tap Licensing
e) Free-tap Licensing

31. ATM transactions are interchangeable among the banks and this is made possible because of:
a) NFS - National Financial Switch
b) SWIFT - Society for Worldwide Interbank Financial Telecommunication
c) NEFT - National Electronic Funds Transfer
d) SFMS - Structured Financial Messaging System
e) None of the above

32. A negotiable instrument can be transferred legally and is possible with__:
a) Encumbrance
b) Endorsement
c) Moratorium
d) Write off
e) Right of set off

33. Which of the following is not one among the cities where Rs. 10 plastic bank notes will be introduced?
a) Hyderabad
b) Mysore
c) Bhubaneswar
d) Shimla
e) Cochin

34. Governing Council for BCSBI is appointed by:
a) Finance Ministry
b) Reserve Bank of India
c) A panel headed by Cabinet Secretary
d) Cabinet Committee on appointments
e) Indian Banks Association

35. Which of the following depicts the financial position of a bank or business enterprise at a given
point of time?
a) Balance sheet
b) Cash flow statement
c) Income statement
d) Model audit
e) Profit & Loss Account

36. General crossing of a cheque means:
a) Two cross lines across the cheque
b) The cheque can have an abbreviation "& Co. "between the two parallel lines
c) The cheque can have the words "Not Negotiable" between the two parallel lines
d) Cash will not be paid across the counter
e) All the above

37. Which is the largest foreign bank in India?
a) American Express Bank Ltd.
b) DBS Bank Ltd.
c) HSBC Ltd.
d) Standard Chartered Bank
e) United Overseas Bank Ltd.

ANSWERS: 
1) b 2) b 3) c 4) a 5) e 6) b 7) a 8) b 9) b 10) a
11) d 12) b 13) d 14) a 15) b 16) a 17) d 18) a 19) b 20) b
21) b 22) a 23) a 24) c 25) b 26) d 27) d 28) d 29) a 30) c
31) a 32) b 33) a 34) b 35) a 36) e 37) d

Goods and Services Tax (GST)

GST is a unified taxation system which would end multiple taxation across the states and create a level playing field for businesses throughout the country, much like the developed nations. It is a multi-stage destination-based tax which will be collected at every stage, starting from procuring the raw material to selling the final product. The credit of taxes paid at the previous stage(s) will be available for set-off at the next stage of supply. Being destination or a consumption based, the GST will also end multiple taxes levied by Centre and the State Governments like Central Excise, Service Tax, VAT, Central Sales Tax, Octroi, Entry Tax, Luxury Tax and Entertainment Tax etc.  This will lower the overall tax burden on the consumer and will benefit the industry through better cash flows and working capital management. Currently, 17 State and Central levies are being applied on goods as they move from one State to the other.

BENEFITS

Different estimates peg the net advantage to the Gross Domestic Product, up to two percentage points.  The GST regime is also expected to result in better tax compliance, thereby increasing its revenue and narrowing the Budget deficit. All the imported goods will be charged Integrated Goods & Services Tax (IGST) which is equivalent to the Central GST + State GST. This will bring equality with taxation on local products.

Mainly, there will be three types of taxes under the GST regime: Central Goods and Services Tax (CGST), State (or Union Territory) Goods and Services Tax (SGST) and Integrated Goods and Services Tax (IGST). Tax levied by the Centre on intra-State supply of goods or services would be called the CGST and that to be levied by the States and Union Territories(UTs) would be called the SGST respectively. The IGST would be levied and collected by the Centre on inter-State supply of goods and services. Four supplementary legislations approving these taxes, namely the Central GST Bill, the Integrated GST Bill, The GST (Compensation to States) Bill, and the Union Territory GST Bill were passed by the Lok Sabha in May this year, making the realisation of 1^st July, 2017 deadline a reality.

All the matters related to the GST are dealt upon by the GST Council headed by the Union Finance Minister while all the State Finance Ministers are its Members. The GST Council also has a provision to adjudicate disputes arising out of its recommendation or implementation thereof.

TAX RATES

The GST Council has fixed four broad tax slabs under the new GST system - 5 per cent, 12 per cent, 18 per cent and 28 per cent. On top of the highest slab, there is a cess on luxury and demerit goods to compensate the States for revenue loss in the first five years of GST implementation. Most of the goods and services have been listed under the four slabs, but a few like gold and rough diamonds have exclusive tax rates. Also, some items have been exempted from taxation. The essential items have been kept in the lowest tax bracket, whereas luxury goods and tobacco products will invite higher tax.

17-YEAR-LONG WAIT

Many countries in the world switched to a unified taxation system very early. France was the first country to do so in 1954 and many others followed, some by implementing GST and others by using a different form of Value Added Tax (VAT). In India, the discussion on GST started in the year 2000, in the NDA Government led by the former Prime Minister, Shri Atal Bihari Vajpayee. Finally, after 17 years of consensus building, 101^st Constitution Amendment Bill was passed by Parliament in 2016. The States had apprehension of reduction in their revenue and their desire to keep some lucrative goods out of the GST baskets like alcohol, petroleum and real estate among others.

IMPACT ON CONSUMERS

From agarbattis (incense sticks) to luxury cars - all these goods will be taxed under different slabs. Movie tickets costing less than Rs 100 have been kept in the 18% GST slab while those over Rs 100 will attract 28% tax under GST. Tobacco products have been kept under a higher tax bracket. Industries such as textiles and, gems and jewellery are subject to a GST rate of 5%

The Government has shown its strong determination and stuck to implementing the GST with effect from 1^st July, 2017. The road ahead would require a lot of resolve by the implementing agencies like the Goods and Services Network, states and the industry.    To sail through initial hiccups and successfully steer the ship of the economy, the Government needs to show the same determination and courage. A bold initiative like GST taken for the welfare of the country must lead to a grand success.

BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS

1. As per the Code of Bank's Commitment to Customers a bank must close/transfer an account maximum within a period of ____ days from the date of receipt of application.
a) 3 Days
b) 5 days
c) 7 days
d) At the earliest possible
e) No such restriction

2. Which risk is eliminated in case of the RTGS transaction?
a) Credit risk
b) Operational risk
c) Settlement risk
d) Systematic risk
e) c and d

3. What is the maximum period of deposit that can be opened under FCNR?
a) 1 year
b) 3 years
c) 5 years
d) 10 years
e) All the above

4. As per Pradhan Mantri Suraksha Bima Yojana (PMSBY) Scheme, if the customer has taken a cover under multiple bank accounts then the amount of premium under this will be ______.
a) Forfeited
b) Renewed
c) Double
d) Same

5. The Jan Dhan Yojana aims directly in promoting:
a) Social Justice
b) Financial Inclusion
c) Rural Development
d) Digital Empowerment
e) Urban Development

6. The premium of 10 paisa for every Rs.100 payable on behalf of the depositor under Deposit Insurance and Credit Guarantee Corporation(DICGC) will be borne by:
a) Bank
b) Life Insurance Corporation of India
c) General Insurance Corporation of India
d) Customer
e) Bank and Customer equally

7. Who was the first woman Deputy Governor of the Reserve Bank of India?
a) Shyamala Gopinath
b) Usha Thorat
c) Arundhati Bhattacharya
d) K.J.Udeshi
e) Usha Ananta Subramanian

8. Which bank has received $100 million (about Rs.645 crore) as the first tranche of ADB's multimillion dollar funding for installation of rooftop solar systems in India?
a) United Bank of India
b) Punjab National Bank
c) Bank of Baroda
d) Canara Bank
e) Corporation Bank

9. The maximum amount that can be deposited in a 'Sukanya Samriddhi Scheme' account in a
financial year is:
a) Rs. 1,00,000
b) Rs.1,50,000
c) Rs. 1,35,000
d) Rs.1,75,000
e) Rs. 1,25,000

10. Under Pradhan Mantri Jeevan Jyoti Yojana (PMJJBY) scheme, an individual is eligible to join the
scheme at the age between 18 years to____.
a) 30 years
b) 40 years
c) 50 years
d) 60 years

11. Which of the following is/are correct regarding Introduction of Additional Settlement Batches
for National Electronic Funds Transfer (NEFT)?
a) The NEFT settlement cycle will be reduced from hourly batches to half hourly batches
b) 11 additional settlement batches will be introduced
c) The total number of half hourly settlement batches during the day will be increased to 23
d) The starting batch at 8.00 am and closing batch at 7.00 pm shall remain the same.
e) All the above

12. In the case of deposit held by joint Individuals, the nomination can be made in favour of:
a) A single individual
b) More than one person in case deposit is payable jointly
c) More than one person in case deposit is payable to either or survivor(s)
d) Separate persons by each depositor
e) None of these

13. What is CDD as per KYC?
a) Customer Duly Diligence
b) Customer Due Delivery
c) Current Deposit delivery
d) Customer due Diligence
e) None of the above

14. STR in the context of Prevention of Money Laundering Act 2002 stands for?
a) Select Transaction Report
b) Suspicious Transaction Report
c) Suspected Transfer Report
d) Suspected Transaction Record
e) None of the above

15. What is the risk classification for "Salaried employees"?
a) Low risk account
b) Medium risk account
c) High risk account
d) All the above
e) None of the above

16. "Clean note policy" of RBI reiterates the Banks to follow which of the following measures?
a) To sort notes into issuable & non-issuable
b) Not to staples notes & to loose pack notes
c) Not to issue soiled & cut notes to general public
d) Not to scribble on the currency notes
e) All the above

17. As per Basel norms Capital is linked to_____:
a) Size of Deposits
b) Risk Weightage of Assets
c) Profitability of the bank
d) Macro economic conditions
e) None of the above

18. Atal Pension Yojana (APY) offers fixed amount of pension ranging between Rs.1,000 to ____
depending upon the contribution which will be based on the age of joining the APY:
a) Rs.2000
b) Rs.3000
c) Rs.4000
d) Rs.5000
e) Rs.10,000

19. As per recent announcement made by Prime Minister on 31st December, 2016,______Kisan credit cards will be converted into RuPay cards in coming 3 months. Government will bear _____ interest on select farm loans.
a) Rs.2 crores; 30 days
b) Rs.2.5 crores; 45 days
c) Rs.3 crores; 60 days
d) Rs.3 crores; 90 days
e) None of the above

20. ______will be the third and final financing stage for MUDRA Bank and maximum loan up to_______can be provided under this stage.
a) Tarun, Rs.8 lakh
b) Tarun, Rs.10 lakh
c) Vyaska, Rs.12 lakh
d) Kishore, Rs.15 lakh
e) Sishu, Rs.4 lakh

21. Which of the following schemes have been launched under Pradhan Mantri Awas Yojana?
a) AMRUT
b) Smart Cities Mission
c) Housing for All
d) All of these
e) Only a & b

22. When the award of the banking ombudsman is not acceptable to customer, he can appeal the matter to the appellate authority. The fee payable to Appellate Authority is:
a) Rs.5,000
b) Rs.6,000
c) 25% of the amount in dispute
d) 50% of the amount in dispute
e) Nil

23. In cheque Truncation system clearing the Image Replace Document (IRD) means:
a) Cheque itself
b) Image of the image
c) An authenticated copy of the cheque
d) Truncated cheque
e) None of the above

24. Nominee has predeceased the A/c holder. Payment shall be made to:
a) Against joint discharge to Legal heirs of the depositor and the legal heirs of nominee.
b) Legal heirs of the nominee
c) Legal heirs of the depositor
d) Payment through Court order or Succession Certificate
e) None of the above

25. Under Sukanya Samridhi Account (SSA) the maximum period upto which the deposits can be made is for___ years from the date of opening of the account?
a) 12 years
b) 14 years
c) 16 years
d) 18 years
e) 21 years

26. The maximum punishment by way of imprisonment for the offence committed under Money Laundering Act is:
a) 7 years
b) 9 years
c) 10 years
d) 12 years
e) None of the above

27. Branches should adopt a system of periodical updation of customer identification data (including
photograph/s) after the account is opened. The periodicity of such updation for High Risk, Medium
Risk and Low Risk category customers are:
a) Two/eight/ten years
b) Two/five/ten years
c) Two/two/five years
d) Ten/eight/two years
e) No such updation is required

28. What are the three pillars of Basel-II?
a) Minimum Capital Requirement, Supervisory Review & Market Discipline
b) Minimum Capital Fund, Asset quality & Financial Supervision
c) Minimum capital adequacy, Asset quality & Risk Management
d) Prudential accounting, greater transparency & Accountability
e) Moderate Capital Adequacy, Risk Management and Market Supervision

29. Establishment of Lok Adalat is governed by which of the following Acts?
a) SARFAESI act 2002
b) Legal services authority act 1987
c) Lok Adalat Act 1985
d) Recovery of debt due to Banks and financial Institutions
e) Indian Contract Act

30. Which bank is planning to raise Rs.9,000 crore through various instruments including Follow-on Public Officer (FPO) of Rs.6,000 crore?
a) Bank of Baroda
b) Bank of India
c) State Bank of India
d) Syndicate Bank
e) Union Bank of India

31. Which of the following documents are required for registration of a Jeevan Pramaan?
a) Aadhar number
b) PPO number
c) Bank Account number
d) All of the above
e) Only a & b

32. The electronic mechanism used by banks for transmitting financial messages across the borders:
a) Telex
b) DOTNET
c) RTGS
d) SWIFT
e) INFINET

33. Pradhan Mantri Kaushal Vikas Yojana (PMKVY) was approved with an outlay of_____.
a) Rs.500 crore
b) 1000 crore
c) Rs.12,000 crore
d) Rs.1,500 crore
e) Rs.2000 crore

34. Bank is required to issue TDS certificate on form______within _____month in which deduction is made:
a) 15-G; one;
b) 15-H; one;
c) 16- A; two;
d) 16- A; one;
e) Form 60; one;

ANSWERS:
1) a 2) c 3) c 4) a 5) b 6) a 7) d 8) b 9) b 10) c
11) e 12) a 13) d 14) b 15) a 16) e 17) b 18) d 19) c 20) b
21) d 22) e 23) c 24) c 25) b 26) a 27) a 28) a 29) b 30) a
31) d 32) d 33) c 34) d

BANKING AWARENESS PRACTICE QUESTIONS

1. As per the latest Monetary Policy Review it has been decided by The Reserve Bank of India to reduce the Staturory Liquidity Ratio w.e.f 24th June 2017 from 20.5% to ______:
a) 20.00%
b) 20.25%
c) 20.75%
d) 21.00%
e) None of the above

2. Which bank is launching Rs. 15,000 Crore share sale to Institutions to increase capital base as a part of meeting Basel III requirements by March 2019?
a) Indian Bank
b Union Bank of India
c) State Bank of India
d) United Bank of India
e) IDBI

3. Which of the following are the facts about Money Transfer Service Scheme (MTSS)?
a) It is a quick and easy way of transferring personal remittances from abroad to beneficiaries in India.
b) Only inward personal remittances into India such as remittances towards family maintenance
c) Remittances favouring foreign tourists visiting India are permissible
d) No outward remittance from India is permissible under MTSS
e) All the above

4. In Electronic Clearing Service there are two types of viz., ECS debit and ECS Credit. What does ECS debit represents?
a) Number of debits and one credit
b) Number of credits and one debit
c) Multiple number of debits and credits
d) Few Debits and Few Credits
e) None of the above

5. The Public Information Officer is required to reply to the query raised under Right to Information
Act within in maximum period of ___ days. In case of delay, the penalty is Rs. ____ per day.
a) 10 days; 100
b) 15 days ; 100
c) 20 days ; 250
d) 30 days ; 250
e) 7 days : 350

6. Fiscal policy is concerned with which of the following?
a) Public revenue and expenditure
b) Issue of currency
c) Education for all
d) Population control
e) Export and Import

7. When credit facilities to one party are sanctioned by more than one bank under a common arrangement, such facility given to a customer is called _____:
a) Consortium
b) Syndication
c) Multiple Banking
d) Participation
e) None of the given options is true

8. FATCA stands for ?
a) Forex Account Tax Compliance Act
b) Foreign Account Tax Compliance Act
c) Forex Account Total Compliance Act
d) Foreign Account Total Compliance Act
e) None of the given options is true

9. In case of decision given by LokAdalat, the appeal against judgement by aggrieved customer can be made within _____:
a) 1 month from the date of judgment
b) 45 days from the date of judgment
c) 2 months from the date of judgment
d) 3 months from the date of judgment
e) No appeal allowed

10. The unclaimed deposits for 10 years and above will be transferred to Depositor Education Awareness Fund (DEAF). This DEAF was introduced in the year__:
a) 2012
b) 2013
c) 2014
d) 2015
e) 2016

11. "Buy Now - Pay Now" is commonly used for ____:
a) Debit Cards
b) Vault Cards
c) Credit Cards
d) E-purse
e) None of the above

12. A settlement system in which the processing and final payment of funds transfer instructions takes place continuously, is called ___.
a) Debit clearing system
b) Credit clearing system
c) National clearing system
d) Real time gross settlement
e) Speed Clearing system

13. Acollaborative network that uses Internet Technology to link business with their suppliers is ____.
a) Internet
b) Intranet
c) Extranet
d) WAN
e) LAN

14. Banknet was set up by ___:
a) IBA
b) RBI
c) Central Govt
d) IT department of Concerned Bank
e) None of the above

15. A There are credit rating Agencies like Standard and Poor, Moody's. According to these Agencies
Corporate Bond which carry a rating of AAA is considered to be _____:
a) Exceptional degree of credit worthiness and top credit rating
b) High probability of default
c) Low risk
d) Medium Risk
e) 3/4th risk

16. Which of the following are part of Public Sector Banks ?
(i) Bank of India
(ii) Central Bank of India
(iii) Regional Rural Bank, sponsored by a nationalized bank
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
e) None of the above

17. RBI introduced Commercial Paper in the year_____:
a) 1970
b)1980
c) 1985
d) 1990
e) 2000

18. When the Award of the Banking Ombudsman is not acceptable to the parties, they can approach
Appellate Authority. At this stage the appellate authority may:
a) Dismiss the appeal
b) Send the matter to the Banking Ombudsman for fresh disposal in accordance with such directions as the appellate authority may consider necessary or proper
c) Modify the award and pass such directions as may be necessary to give effect to the modified award
d) Pass any other order as it may deem fit
e) All the above

19. Credit cards are of standard size and thickness and are embossed with which of the the following details?
(i) Name of card holder
(ii) Card number
(iii) Validity date
a) Only (i) and (ii)
b) Only (i) and (iii)
c) Only (ii) and (iii)
d) (i), (ii) and (iii)
e) Only (i)

20. Which of the following are correct regarding Indo - Nepal Remittance Scheme?
a) A remitter can transfer funds up to Rs. 50,000
b) A remitter can transfer funds only upto Rs. 25,000
c) It is not necessary that the remitter should maintain an account with a bank in India.
d) a remitter can transfer funds upto Rs 1,00,000
e) Only a & c

ANSWERS:
1) a 2) c 3) e 4) a 5) d 6) a 7) a 8) b 9) e 10) c
11) a 12) d 13) c 14) b 15) a 16) d 17) d 18) e 19) d 20) e

INVESTOR PROTECTION FUND(IPF)

ISE has set up an Investor Protection Fund (IPF) to meet the claims of investors against defaulter Members, in accordance with the Guidelines issued by the Ministry of finance, Government of India.
ISE has established an Inter-connected Stock Exchange Investor Protection Fund Trust (ISE-IPF Trust) with the objective of compensating investors in the event of defaulters' assets not being sufficient to meet the admitted claims of investors, promoting investor education, awareness and research. The Investor Protection Fund (IPF) is administered by way of registered Trust created for the purpose. The Inter-connected Stock Exchange Investor Protection Fund Trust is managed by Trustees.
The Inter-connected Stock Exchange Investor Protection Fund Trust, based on the recommendations of the Defaulters' Committee, compensates the investors to the extent of funds found insufficient in Defaulters' account to meet the admitted value of claim, subject to a maximum limit as per decided by Trust per investor per defaulter/expelled member.

Banking Awareness Practice MCQs for All Bank Exams

1. ____ is raised in capital markets
a) Funds through long term securities
b) Long term loans through Govt. securities
c) Medium term loans
d) Short - term instruments
e) None of the above

2. Interest on Government securities on fixed basis is known as:
a) Bank rate
b) Coupon
c) Prime Lending Rate
d) Bench mark PLR
e) None of the above

3. What is meant by development Oriented banking?
a) Infrastructure financing
b) Extending loans to States, which are least developed
c) Taking up the task of development of the economy by providing support to under privileged sections of the society
d) All of the above
e) None of the above

4. The main function of SIDBI is:
a) Promotion of SSI
b) Finance of SSI
c) Development of SSI
d) All of the above
e) None of the above

5. When a bank returns a cheque unpaid, it is called?
a) Payment of the cheque
b) Drawing of the cheque
c) Cancelling of the cheque
d) Dishonour of the cheque
e) Taking of the cheque

6. RBI pays interest on CRR balances of banks at _____.
a) Bank Rate
b) Repo Rate
c) Bank Rate minus 2%
d) Zero %
e) None of the above

7. The Bank should comply and intimate the compliance of Award to Ombudsman within ______
a) 2 Months
b) 3 months
c) One month
d) One year
e) None of the above

8. What are the features of selective credit control?
a) They distinguish between essential and nonessential uses of Bank credit
b) Only nonessential uses are brought under the scope of Credit Bank controls
c) They affect not only the lenders but also the borrowers
d) All the above
e) None of the above

9. Which of the following are the targets for different categories of priority sector?
a) Overall target 40% of net Bank credit
b) Agriculture loans (direct and indirect) 18%
c) Priority sector target for foreign Banks is 32%
d) All of the above
e) None of the above

10. Which of the following can be called as intermediary in the Financial System?
a) Insurance companies
b) Banking companies
c) Mutual funds
d) All of the above
e) None of the above

11. A depositor wants to give nomination in favour of a Needy Charitable Trust. Is it acceptable to the banker?
a) Yes, anyone can be a nominee
b) No, only a blood relative should be a nominee
c) As per the discretion of the Branch Manager
d) No, as per Nomination Guide lines only Individuals can be nominated as Nominee and not institutions
e) None of the above

12. Which of the following is not an India based credit rating agency?
a) CRISIL
b) CARE
c) Standard & Poor
d) ICRA
e) None of the above

13. SMERA is an SME Rating Agency in India meant for?
a) Rating on credit worthiness of MSME
b) Rating on Quality Management
c) Rating on Training System
d) Rating on Technology usage in the organization
e) None of the above

14. Which of the following is not insured by the DICGC?
a) All Indian commercial Banks
b) Foreign Banks branches functioning in India
c) Local Area Banks
d) Cooperative Banks
e) Primary cooperative societies

15. Which of the following is not a feature of Recurring Deposit Account?
a) Rate of interest will be higher than Savings Bank Account
b) Loan facility is available on Recurring Deposit
c) No TDS on the interest earned
d) Premature closure of the Recurring Deposit Account is not allowed
e) None of the above

16. Cash Reserve Ratio is to be maintained by banks with reference to which of the following?
a) Time liabilities
b) Demand liabilities
c) Time and demand liabilities
d) Net demand and time liabilities
e) None of the above

17. What is the minimum CRR as per the relevant Act?
a) No minimum
b) 4%
c) 3%
d) 6%
e) 8%

18. Which of the following is not true in case of SARFAESI Act 2002?
a) Banks can take action of recovery of loan, in case of NPA, without intervention of court
b) Minimum Rs 1.00 lakh overdue should be in the loan account
c) Sixty days notice to be given under the Act to the defaulted borrower
d) SARFAESI Act can be implemented even if one installment in term loan is overdue
e) All of the above

19. The main function of an Asset Management Company is:
a) Hold the securities of various schemes
b) Manage the funds by making investments in various types of securities
c) Hold its property for the benefit of the unit holders
d) Act on behalf of SEBI
e) All of the above

20. Which kind of assistance is provided by EXIM Bank to Indian Companies?
a) Direct loans to exporters
b) Technology services
c) Credit for export of capital goods
d) a and b
e) All of the above

21. Which of the following includes "banking business" as per Banking Regulation Act?
a) Acceptance of deposit
b) Collection of bills
c) Buying of foreign exchange
d) All of the above
e) None of the above

22. Which of the following acts deals with the Right of Appropriation?
a) Indian Contract Act
b) Companies Act
c) Negotiable Instruments Act
d) All of the above
e) None of the above

23. Depositories hold shares in _ form:
a) Physical
b) Dematerialized
c) Either a or b
d) Both a and b
e) None of the above

24. What is the full form of NBMSME?
a) National Bank for Micro, Small and Medium Enterprises
b) National Board for Micro, Small and Medium Enterprises
c) National Board for Micro, Selected Medium Enterprises
d) National Bank for Medium and selected Medium Entrepreneurs
e) None of the above

25. Mr Kanungo is appointed as RBI Deputy Governor (who is presently Executive Director in
the central bank) will replace Mr._______ , Deputy Governor.
a) Viral Achary
b) NS Vishwanathan
c) R.Gandhi
d) S.S.Mundra
e) None of the above

26. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant

27. _____ provides Clearing House facilities for netting of Payments and Security delivery:
a) Primary dealers
b) Banks
c) Stock exchanges
d) All of the above
e) None of the above

28. ____ is the regulatory authority for Mutual funds:
a) IRDA
b) SEBI
c) RBI
d) Ministry of Corporate affairs
e) All of the above

29. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs

30. Primary dealers deal in:
a) Shares
b) Insurance
c) Government securities
d) None of the above
e) All of the above

31. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above

32. What is the purpose of reduction in Cash Reserve Ratio (CRR)?
a) Reduce Credit Flow
b) Enhance Credit Flow
c) Enhance availability of cash
d) Reduce Cash transactions
e) None of the above

33. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above

34. Who notifies Foreign Trade Policy?
a) RBI
b) DGFT
c) Govt. of India
d) ECGC
e) None of the above

35. Cash kept in the currency chest is owned by?
a) Currency Chest branch bank
b) State Bank of India
c) Central Government
d) Reserve Bank of India
e) None of the above

36. Expand the term LIBOR as used in financial banking sectors?
a) Local Indian Bank Offered Rate
b) London-India Bureau of Regulations
c) Liberal International Bank Official Ratio
d) London Inter Bank Offered Rate
e) None of the above

37. Which one of the following rates is NOT decided by the RBI?
a) Bank Rate
b) Repo Rate
c) Reverse Repo Rate
d) Income Tax Rates
e) Only a & b

38. When more than one bank is allowing credit facilities to one party in coordination with each
other under a formal arrangement, the arrangement is generally known as:
a) Participation
b) Consortium
c) Syndication
d) Multiple Banking
e) All the above

39. The headquarters of International Monetary Fund is ___
a) Geneva
b) Paris
c) London
d) Manila
e) Washington

40. Who is the new chairman of SEBI?
a) Ajay Yogi
b) UK Sinha
c) TS Vijayan
d) G Srinivasan
e) None of the above

Answers:
1) a 2) b 3) c 4) d 5) d 6) d 7) c 8) d 9) d 10) d
11) d 12) c 13) a 14) e 15) d 16) d 17) a 18) d 19) b 20) e
21) d 22) a 23) b 24) b 25) c 26) c 27) c 28) b 29) b 30) c
31) b 32) b 33) b 34) b 35) d 36) d 37) d 38) b 39) e 40) a

BANKING AWARENESS PRACTICE MCQs FOR BANK EXAMS

1. Fiscal Policy is composed of several parts which include?
a) Tax Policy and Expenditure Policy
b) Investment or Disinvestment Strategies
c) Debt or Surplus Management
d) All of the Above
e) None of the above

2. Rural Infrastructure Development fund (RIDF) is financed by?
a) Selected group of public Sector Banks
b) Ministry of Rural Development
c) Reserve Bank of India
d) NABARD
e) None of the above

3. The bank conducts Government business
as an agent of ?
a) Union and state Government
b) Reserve Bank of India
c) State Bank of India
d) SIDBI
e) None of the above

4. The Bank of Calcutta, Bank of Bombay and Bank of Madras were merged in 1921 to form?
a) Reserve Bank of India
b) Imperial Bank of India
c) Bank of India
d) Union Bank of India
e) None of the above

5. India's largest commercial bank is?
a) Central Bank of India
b) State Bank of India
c) Indian overseas bank
d) Bank of India
e) Punjab National Bank

6. Interest on the savings bank accounts is compounded?
a) Daily
b) Yearly
c) Quarterly
d) Half-yearly
e) All of the above

7. Rates of Interest on deposits are determined by?
a) IBA
b) Ministry of Finance
c) The Bank Itself
d) Government of India
e) Other than the given

8. Current account becomes dormant when there are no withdrawals for the last?
a) 3 months
b) 6 months
c) 24 months
d) 12 months
e) None of the above

9. In terms of Section 5(1) (5) of the Banking Regulation Act, 1949, a ‘banking company’ means any company which
a) accepts deposits from the public
b) undertakes lending of money
c) transacts the business of banking in
d) All of the above
e) None of the above

10.Which of the following is not a negotiable instrument ?
a) Cheque
b) Pay order
c) Bill of Exchange
d) All of the above are negotiable instruments
e) Other than the given

11. “Currency Swap” is an instrument to manage?
a) Currency Risk
b) Interest Rate Risk
c) Currency and Interest Rate Risk
d) Cash Flows in different currencies
e) All of the above

12. “Plastic Money” denotes?
a) Bearer cheque
b) Credit card
c) Demand Draft
d) Traveller’s cheque
e) Gift cheque

13. National Income of India is estimated by?
a) Central Estimates Survey Committee
b) National Sample Survey Committee
c) Central Statistical Organization
d) Finance Ministry
e) Other than the given

14. Nomination facility is available to?
a) Individuals/Sole Proprietorship accounts/Private Limited Companies
b) Individuals/Sole Proprietorship Accounts/Partnership Accounts
c) Individuals/Sole Proprietorship Accounts
d) All of the above
e) Other than the given

15. Off Shore Banking Unit is?
a) a unit which is situated in Foreign country
b) a unit which is situated in Special Economic Zones and deals in foreign currency only
c) a unit which is actively participating in lending foreign currency loans and in joint ventures
d) All of the above
e) None of the above

16. If a currency note is demonetized, it takes away the ....... of that currency.
a) legal tender character
b) exchange rate
c) value
d) All of the above
e) Other than the given

17. Currency Note containing political slogan is not a legal tender as per:
a) Legal Tender (Inscribed Notes) Act, 1964
b) Negotiable Instruments Act, 1881
c) Reserve Bank of India Act
d) All of the above
e) Other than the given

18. Deposits under NRE/FCNB accounts are linked to?
a) Base Rate
b) SIBOR
c) LIBOR
d) All of the above
e) Other than the given

19. Electronic Fund Transfer scheme of RBI has been renamed as?
a) Clearing
b) Core Banking Solutions
c) Real Time Gross Settlement
d) National Electronic Fund Transfer
e) All of the above

20. Which private bank is recently merged with Kotak Mahindra Bank (KMB)?
a) ING Vysya Bank
b) KarurVysya Bank
c) Lakshmi Vilas Bank
d) Jammu and Kashmir Bank
e) Other than the given

21. Which one of the following rates is not decided by RBI?
a) Repo rate
b) Base rate
c) Bank rate
d) Marginal Standing Facility (MSF) rate
e) Other than the given

22. Which of the following bank is generally not considered as Commercial bank?
a) Public Sector Bank
b) Private Sector Bank
c) Development Bank
d) Foreign Bank
e) Other than the given

23. Which two private sector banks have got license from RBI in 2014?
a) Bandhan and Yes Bank
b) Yes Bank and IDFC
c) IDFC Bank and Bandhan Bank
d) Axis Bank and ICICI
e) Other than the given

24. Which bank first introduced Automated Teller Machine (ATM) in India (1987)?
a) SBI
b) Punjab National Bank
c) Federal Bank
d) HSBC
e) Other than the given

25. Refinance facility is provided by NABARD. Which institutions can avail this facility?
a) State cooperative banks
b) Regional rural banks
c) Commercial bank
d) All of the above
e) Other than the given

26. Which of the following is true?
a) NBFCs can accept deposits from the public
b) NBFCs cannot offer deposit schemes to the public
c) Deposits of NBFCs are insured with DICGC
d) NBFCs can accept deposits from public if they are registered and permitted by RBI
e) Other than the given

27. Base rate is the rate below which no bank can allow their lending to anyone. Who sets-up this ‘Base rate’ for banks?
a) Individual Banks’ Board
b) Ministry of Commerce
c) Ministry of Finance
d) Rreserve Bank of India
e) Interest Rate Commission of India

28. Commercial banks are the largest category of financial intermediaries; others include?
a) Life-insurance companies
b) Pension funds
c) Savings and loan institutions
d) All of the above
e) None of the above

29. An average citizen cannot open a Savings account in which of the following?
a) Commercial bank
b) Post office
c) Co-operative bank
d) RBI
e) Other than the given

30. Educational for All Development Index is released by?
a) IMF
b) World Bank
c) UNO
d) WTO
e) Other than the given

31. Non-Agricultural Market Access (NAMA) word is related to which organization?
a) WTO
b) UNCTAD
c) IMF
d) World Bank
e) NDB

32. RBI has introduced “Marginal Standing Facility” with the objective of:
a) Controlling Inflation
b) Containing instability in long term inter-bank rates
c) Containing instability in the overnight inter-bank rates
d) All of the above
e) None of the above

33. Which of the following is not a measure to control inflation as adopted by Govt. of India and/or RBI?
a) Monetary Policy
b) Fiscal Policy
c) Financial Inclusion
d) Price control
e) Bank Rate Policy

34. card is basically a payment mechanism which allows the holder to make purchase without any immediate cash outflows either physically or through his accounts?
a) Debit
b) Smart
c) Credit
d) ATM
e) Kisan Credit

35. The Negotiable Instruments Act deals with?
a) Cheques, demand drafts, banker’s cheques
b) Promissory notes, bills of exchange and cheques
c) Bills of exchange, Cheques and demand drafts
d) Cheques, demand drafts and saving bank withdrawal forms
e) None of the above

36. Small Industries Development Bank of India’s Single Window scheme means that a borrower is granted?
a) Both term loan for fixed assets & loan for working capital through the same agency, namely, SFCs or Commercial Banks
b) Both term and working capital through SIDBI itself
c) Both term loan and working capital hrough IDBI
d) All of the above
e) None of the above

37. has been declared the first ‘total banking state’ in India, successfully implementing the total financial inclusion thereby ensuring banking facility to all households.
a) Maharashtra
b) Kerala
c) Himachal Pradesh
d) Uttarakhand
e) None of the above

38. What do you understand by the term ‘Mortgage’?
a) Sale of moveable security in the event of default by the borrower
b) Registration of charge with the Registrar of Companies
c) Making the security of immovable property avail able as a cover for a home loan by the borrower
d) Registration of charge with the Regional Transport Authority
e) Returning of the security to borrower by the bank of receipt of full payment

39.Which of the following acts is useful in controlling HAWALA transactions?
a) FEMA Act
b) RBI Act
c) DICGC Act
d) Banking Regulation Act
e) None of the above

40.CAMELS’ is a type of Bank Rating System. In CAMELS, what does ‘C’ stand for?
a) Currency
b) Compensation
c) Capital Adequacy
d) Capitalisation
e) None of the above

ANSWERS
1.d 2.d 3.b 4.b 5.b 6.a 7.c 8.c 9.d 10.d
11.d 12.b 13.c 14.c 15.b 16.a 17.a 18.c 19.c 20.a
21.b 22.c 23.c 24.d 25.d 26.d 27.a 28.d 29.d 30.c
31.a 32.c 33.b 34.c 35.c 36.a 37.b 38.c 39.a 40.c

Linking of Bank Account with Aadhaar

Banks are committed to seed savings bank accounts with the account holder’s Aadhaar number, based on the account holder’s consent. 

Aadhaar seeding will help accountholders to do fund transfer through the Aadhaar Enabled Payment System (AEPS) at Banking Correspondent points. Bharat Interface for Money (BHIM) app also supports pay to Aadhaar number mode. Further, Direct Benefit Transfer (DBT) can be made to eligible seeded accounts. 

As per reports received from public sector banks, Regional Rural Banks and 13 private sector banks, there are 110.03 crore individual, operative savings bank accounts (including Pradhan Mantri Jan Dhan Yojana accounts) with Aadhaar number seeded in 52.95 crore accounts. 

The overreaching aim and objective of seeding is enabling delivery of basic financial services. 

Banks, their taglines and Headquarters

Bank	Tag Line	Established on Headquarter
Allahabad Bank	A Tradition of Trust	24 April, 1865 Kolkata
Andhra Bank	Where India Banks	20 November, 1923 Hyderabad
Bank of Baroda	India's International Bank	1908 Vadodara
Bank of India	Relationship beyond banking	7 September, 1906 Mumbai
Bhartiya Mahila Bank	Empowering Women	2013 New Delhi
Bank of Maharashtra	One Family one bank	1936 Pune
Canara Bank	Together We can	July 1906  Bangalore
Central Bank of India	"Central To you Since 1911"	1911 Mumbai
Corporation Bank	A Premier Public Sector Bank	1906 Mangalore
Dena Bank	Trusted Family Bank	26 May, 1938 Mumbai
ECGC Bank	You focus on exports.	30 July, 1957 Mumbai
IDBI Bank	We cover the risks	Banking For All, 01 July, 1964 Mumbai
Indian Bank	"Aao Sochein Bada"	Your Own Bank 1907 Chennai
Indian Overseas Bank	Good people to grow with	10 February, 1937 Chennai
Punjab National Bank	The name you can bank upon	19 May, 1894 New Delhi
Punjab & Sind Bank	Where service is a way of life	1908 New Delhi
Oriental Bank of Commerce	Where every individual is committed	19 February, 1943 Gurgaon
UCO Bank	Honours Your Trust	06 January, 1943 Kolkata
Union Bank of India	Good People to Bank with	11 November, 1919 Mumbai
United Bank of India	The Bank the begins with "U"	1950 Kolkata
Vijaya Bank	A Friend you can bank on	1931 Bangalore
SBI	With you all the way, Pure Banking Nothing Else, The (Imperial Bank India) 1 July, The Banker to Every Indian 1955 (SBI)	27 January, 1921 Mumbai
Axis Bank	Badhti ka naam Zindagi	1990 (as UTI Bank) Mumbai
ICICI Bank	Hum Ha Na, Khyal Apka	1994 Mumbai
HDFC Bank	We understand your world indeed	1994 Mumbai
Yes Bank	Experience our Expertise	2004 Mumbai
Kotak Mahindra Bank	Lets make money simple	1985 Mumbai
IndusInd Bank	We make you feel richer	April 1994 Mumbai
Federal Bank	You perfect banking partner	1945 Kochi, Kerala
Jammu & Kashmir Bank	Serving to empower	Oct 1, 1938 Sri Nagar, J & K
South Indian Bank	Experience next generation banking	1929 Thrissur City, Kerala
Karur Vysya Bank	Smart way to bank	1916 Karur, Tamil Nadu
Bandhan Bank	Aapka Bhala, Sabki Bhalai	2014 Kolkata, West Bengal
IDFC Bank	Banking Hatke	2014 Mumbai