Material 2008 B

SURE SUCCESS QUESTIONS
An ebook on Bank Promotion Tests and Interviews
(Updated upto July 2008)
Test Papers with Multiple Choice

and Objective Type Questions
&
Memory based question asked in
promotion tests of different banks
1
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TEST I
1. A large company is sanctioned credit facilities under consortium and the banks want to take
action under SARFAESI Act:
a. 60% of the banks by no. should agree b. 75% of the banks by no. should agree
c. (a) and (b) both the conditions should be satisfied. d. only condition (a) should be satisfied.
2. Banks that have floated special deposit schemes with ______and other features advised to
immediately discontinue the schemes and report compliance to RBI.
a. lock -in Periods b. Differential interest c. Insurances attached d. All of
the above
3. In the Union Budget for 2008-09, the fiscal deficit is proposed at ___ % of the gross domestic
product.
a. 2.5% b .3.0% c. 3.5% d. 4.0%
4. The aggregate ceiling for overseas investment by registered Mutual funds stands enhanced
to_____,
a. USD 5 billion b. USD 4 million c. USD 6 million d. MFs can not invest Overseas anymore
5. In the Union Budget for 2008-09, the revenue deficit is proposed at ___ % of the gross
domestic product:
a. 1.5% b . 1.0% c.0.5% d. nil
6. RBI has advised Banks to provide a complaint form along with the name of the nodal officer
for complaint Redressal, ________to facilitate submission of complaints by customers.
a. On the home page of their website b. On the home page of RBI website
c. On the homepage of IBA website d. All of the above
7. National Rural Employment Guarantee Scheme is proposed to be extended to all the ___
districts in India wef ___:
a. 487, 31.3.2008 b. 504, 31.3.2008 c.552, 1.4.2008 d. 596, 1.4.2008
8. RBI has set up a Committee on Customer Services to look into customer services provided by
RBI directly or through banks / institutions headed by ________:
a. H. Prabhakar Rao b. AVRajwade c. Vepa Kameshwara Rao d. S.C Gupta
9. In the Union Budget for 2008-09, the Govt. proposes to withdraw which of the following:
a. TDS provisions wef 1.6.2008 b. BCTT provisions wef 1.6.2008
c. BCTT provisions wef 1.4.2009 d. TDS provision wef 1.4.2009
10. RBI announced guidelines for "Door Step Banking". The latest amendment provides for
_______at the Door step of both Corporate and individual customers.
a. Delivery of cash b. Collecting Safe custody articles
c. Personal Assistance service d. All of the above
11. Which one of the following is not true about the "MEZZANINE FINANCING"?
a. It is a form of Debt capital.
b. It places itself below the debts and above the equity of the financing company.
c. Mezzanine financing offers a way for the companies to obtain finance without ceding ownership of
their company.
d. Financers generally look for lower IRR compared to equity investor and generally not secured by a
property charge.
e. None of the above.
12. Which one of the following is not true about the term "CARBON CREDITS"?
a. A Carbon credit gives the owner the right to emit app one tonne of carbon dioxide.
b. Carbon credits are a tradeable permit scheme and can be exchanged between businesses
having short of quotas or below the quotas.
c. These can be bought and sold in international/national market at the Govt. controlled prices.
d. The need arises because International treaties such as Kyoto Protocol set quotas on the amount of
green house gases that those countries can produce.
e. All the above are true.
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13. Which one of the following best represents the term "LEVERAGED BUYOUT"?
a. A leveraged buyout occurs when a financial sponsor gains control of a majority of a target
company's equity through the use of Private equity.
b. A leveraged buyout occurs when a financial sponsor gains control of a majority of a target.
company's equity through the use of borrowed money or debt.
c. A leveraged buyout occurs when a financial sponsor gains control of a majority of a target
company's equity through the use of Equity capital only.
d. A leveraged buyout occurs when a financial sponsor gains control of a majority of a target
company's equity through the use of a mix of Equity capital and Debt Capital.
e. All the above are true.
14. Maximum FDI investment in Banks in India is allowed_____?

a. 74% b. 26% c. 50% d. 49% e. None of the above.
15. Which one of the following best explains the term E-Governance in banking sector?
a. Banking System that is taking care of its customers, staff, shareholders etc to ensure best practices in
banking.
b. A Banking system that is fully automated to be governed electronically by the Govt with the sole
objective to establish best practices for Anti Money Laundering activities.
c. A Banking system that is fully automated and transparent to all where there is no scope of secrecy of
bank customers to check benami transactions and black money.
d. Total connectivity of Information System of various banks, RBI etc with latest telecommunication
modes controlled with state of art security architecture/tools etc to ensure fidelity of information:
e. None of the above is true.
16.In the balance sheet of a bank, the guarantee is shown as contingent liability by recording it as
:
a. a contingent liability b. A contra-item i.e. endorsements and acceptances
c. footnotes d. not reflected in the balance sheet
17. A person returns from a foreign trip and has some unspent foreign exchange. He can retain it
if the amount is up to :
a. $ 2000 b. $10000
c. $ 5000 if currency notes and $10000 if travellers’ cheques d. cannot retain. It has to be
surrendered
18. Electronic image of the cheque prepared by a collecting bank and having ____ possession of
the paper cheque is called ___ cheque.
a. electronic, electronic b. electronic, truncated c. physical, truncated d. truncated,
electronic
19.A trust has approached the bank for sanction of loan. What will be the procedure for availing
the loan :
a. Loan cannot be given even if the Trust Deed provides for that.
b. Loan can be given only if the Trust Deed provides for that.
c. Loan can be given only if the Trustee pass a resolution for that.
d. Loan can be given only if the Trustees are ready to give their personal guarantee
20. The target for women within SGSY advances is ___ and for women self help group____:
a. 40%, 40% b. 50%, 50% c. 50%, 40% d. 40%, 50%
21. Biometric Security is based on biological characters viz.

a. finger prints and palm recognition b. face recognition and voice
recognition
c. handwriting and manual signature recognition d.(a & b only)
22. What is the service fee under Credit Guarantee Fund for MSE :
a. 1.5% of sanctioned amount b. 1.5% of outstanding amount
c. 0.75% of sanctioned amount d. 0.75% of outstanding amount
23. In India, the Cyber Law is called

a. Computer Misuse Act b. Information Technology Act
c. Computer related Offences Act d. Fraudulent Access to Computers Act
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24.What time is available to the customer to lodge complaint with Ombudsman : (a) 1 year from
receipt of reply with which customer is not satisfied (b) 1 year where reply not received by the
customer for one month (c) 1 year from date of lodging the complaint with the bank
a. a to c all correct b. a and c only correct
c. b and c only correct d. a and b only correct
25. For Security SFMS depends on

a. Lock & Key b. Digital Signatures c. Normal Signature d. Identity cards.
26. Restrictions on access to a computer system by the unauthorised persons is through:

a. networking technology b. Firewall technology
c. virus technology d. all the above
27. Which one of the following has been adopted by Banks as a strategy in case of net banking?
a. Discriminatory Pricing, b. Dumping,
c. Marketing Penetrating Pricing, d. Promotional Pricing, e. All the above.
28. Amount up to which no collateral security is to be taken for Educational loans as per RBI
guidelines is_________:
a. Rs 4 lacs b. Rs. 7.50 lacs c. Rs 15 lacs d. Rs
150,000
29. A decision has been given by an Ombudsman and the customer has given his consent for
acceptance of the same. Within how many days the decision has to be implemented by the bank:
a. 30 days from the date of award b. 30 days from the date of acceptance customer
c. 60 days from the date of award c. 60 days from the date of acceptance customer e. none of these
30. Crew/ pilots of India based Airlines I Indian shipping companies getting daily allowances in
Forex during their flights / cruise abroad can credit it to their:
a. NRE account b. NRO account c. EEFC account d. RFC(D) Account
31. The date for implementation of Basel II for those banks who have branches abroad or foreign
banks having branches in India is________?
a. 31.03.08 b. 31.03.09 c. 31.3.2010 d. 31.3.2011 e. None of these
32. TDS to be deducted from interest paid on the NRO SB/ Term deposit accounts is:
a. 30% b. 33%
c. 30% + 10% surcharge if tax amount exceed Rs. 8,50,000. d. No. tax deduction at all
33. RBI gives refinance against Export credit for a maximum period of_______?
a. 6 months b. 12months c. 3 months d. 9 months e. 45 days
34. In case of loans to a party, the Long term liabilities are compared to Long term Assets / Net
Worth by the Bank in the B/Sheet of the party, to see_____?
a. Liquidity position of the company
b. Capability of repayment of long term liabilities by the long term assets .
c. WC requirement d. DSCR. e. None of the above.
35. Interest subvention of_______% is allowed to commercial banks in case of advances to

farmers upto Rs_____provided the interest charged is 7%?
a. 2 and 3 lacs b. 1 and 5 lacs c. 2 and 5 lacs d. 1 and 3 lacs e. None of
these
36. As per Nomination guidelines under Sec. 45 ZA for deposit a/cs, only one nomination per a/c
is permitted, even if it is joint a/c. Who among the following can be nominated, under the
provision ____?
a. A Firm b. A Joint Stock Co. c. NRI d. HUF e. None of
the above
37. In our bank, the penalty for late deposit of installment is Rs. 2.00 per hundred. The penalty
can be waived if_______________?
a. The customer is valuable b. He promises to deposit large amount in FDR
c. He deposits equal no. of instalments in advance.
d. We can charge half the penality if he is a good customer. e. None of these.
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38. Normally a FDR under NRE scheme is not permitted beyond 3 years. However banks can
allow beyond 3 years. but with the condition that interest on it will not be more than the rate
applicable for a period of_______?
a. 1 year b. 2 years c. 3 years d.3 to 5 years .
e. No interest can be paid beyond 3 yrs.
39. Under the CDR system, if a suit filed account is to restructured, the consent of creditors is
required having :
a. 75% share by value and 60% by number of banks. b.75% share by value and 75% by number of
banks.
c. 60% share by value and 60% by number of banks. d. 60% share by value and 75% by number of
banks.
40. BGs/LCs issued by the bank are shown as part of their _____in the B/Sheet.
a. Other Liabilities b. Current Liabilities c. Loans
d. Contra item e. Contingent Liabilities-as footnote.
ANSWERS
1 B 2 A 3 A 4 A 5 B 6 A 7 D
8 A 9 C 10 A 11 E 12 C 13 B 14 A
15 D 16 B 17 A 18 C 19 B 20 D 21 D
22 C 23 B 24 D 25 B 26 B 27 A 28 B
29 B 30 D 31 A 32 C 33 A 34 B 35 A
36 C 37 E 38 C 39 A 40 E
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TEST II
1. Recently RBI permitted Special concession to the Exporters of certain categories and advised
banks to charge intt. @ ______%
a. BPLR-1.00 b. BPLR-2.00 c. BPLR-2.50 d. BPLR-
6.50 %
2. What are the new baskets under the period 1-14 days under ALM.
a. 0;1-7; 8-14 b. Next day;2-7; 8-14 c. Next day;2-5; 6-14 d. Next
day;2-10; 11-14
3. CTR- monthly reporting to FIU-IND by the Corporate office with in ________Days.

a. 10 b. 15 c. 20 d. month end
4. Recently, Banks were advised to strengthen branch level Customer committees by

involving____:
a. Senior citizen Customers b. women c. Minority Community members d. All of the
above.
5. For setting up of Agri-clinic the amount of subsidy is permitted @_____% for Gen category
and @ _____% for SC/ST.
a. 25:25 b. 25:30 c. 20:25 d. 25:33.33.
6. National Do Not Call Registry has been now launched, Banks are advised by RBI to ensure
that all _______ engaged in Telemarketing by them, register themselves with DoT as
telemarketers at the earliest.
a. Direct selling agents b. Direct Marketing Agents c. Staff members d. a & b
7. As per guidelines issued by the RBI, ____% discount on the Revaluation Price is to be applied
before these are shown as part of ______ of the capital for CRAR purposes.
a. 55: Tier-1 b. 55: Tier-II c. 45: Tier-1 d. 45-Tier-II
8. What is the latest guideline from RBI about Savings accounts?

a. Customers should be issued with passbooks
b. If they are willing to receive statements, Monthly statements should be sent
c. Name and Address of the Bank should be clearly mentioned in the passbooks d. All of the above
9. Which one of the following. truly explains the Gresham's Law in Economics?
a. Bad money drives out good money b. Good money drives out bad money
c. Inflation leads to Black money d. Deflation drives out black moneye. None of the above.
10. At present what type of Risk approach is being implemented by the banks as regards to
Credit and operational Risk.
a. Standardized & Basic Indicator Approach b. RBIA c. Adv. RBIA d. None of these
11. In order to encourage a formal channel of communication between customers and banks at
the branch level, which one of the following is not true with regard to RBI's latest guidelines.
a. Banks should include customers in the Branch Level Customer Service Committee (BLCSC).
b. As Sr. Citizen usually form an important constituency in banks, a Sr Citizen should also be
included in the committee.
c. The BLCSC should give quarterly report giving input/suggestions to Standing Committee on
Customer Service.
d. The BLCSC should meet at least once in a month. e. None of the above.
12. The financial instruments that draw their value from some underlying financial instrument
or contract, are called:
a. participatory notes b. derivatives c. options d. futures
13. Which of the following cannot be appointed as a nominee by an NRI account holder, residing
in UK:
a. his old mother of 98 years, residing in India b. his minor niece, aged 3 years, living in Canada
c. his son living in USA for the last 30 years d. HUF in which he is a Karta
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14. In PNB’s scheme of Kisan Ichchapurti, the maximum amount of cash credit for crop
production, consumptions needs (other than housing) is Rs______ .
a. 51ac b. 10lac c. 61ac d. 7 Lac e.None of
these
15. Bank-A has purchased a NPA account from Bank-B, which will be treated standard account
for the first 90 days. For capital adequacy ratio purpose, what will be risk weightage for Bank-B:
a. 150% b. 125% c. 100% d. 75%
16. In which of the following types of accounts, joint account of NRI with resident Indian is
allowed?
a. NRO b. FCNR c. NRE d. All of these e. None of
these
17. For a study of long term growth of the economy we use_____?

a. Real Gross Domestic Product. b. Real Net Domestic Product
c. Real Gross National Product d. Real Net National Product e. None of
the above.
18. A bank wants to square its long position in a foreign currency. Around this time, the currency
rates have been appreciating:
a. bank will make profits b .bank will incur loss
c. bank will not be affected in any manner d. depending upon the position, the bank may gain or lose.
19. As per Credit Guarantee Fund Scheme for Micro and Small Enterprises (CGTMSE),
maximum cover available per borrower which shall not exceed 75% of the amount in default in
respect of credit facility extended by the lending institution subject to maximum of Rs____lacs.
a. 25.00 b. 50.00 c. 18.75 d. 37.50 e. None of the above.
20. The meeting of OLIC (Rajbhasha committee) is held once in _______.

a. Month b. Quarter c. Half year d. Week e. None of these
21. A bank is approached by one of its NRI customers to open a term deposit of 3 years under
FCNR(B) scheme. For which of the following group of currencies, his request can be accepted:
a. US dollar and Singapore Dollar b . Euro and Dinar
c. Japanese Yen and Canadian Dollar d. Australian Dollar and Hongkong Dollar
22. Inflation occurs when aggregate supply is________.

a. Less than aggregate demand b. More than aggregate demand,
c. Equal to aggregate demand d.No relation between demand and supply e. None of the
above.
23. International Finance Corporation (IFC) has decided to fund an Ultra Mega Power Project in
Gujarat. This project belongs to_______.
a. Reliance group b. Tata Group c. Birla Group d. NTPC e. None of
the above.
24. As per section 269-T of the Income tax act, where the depositor holds, term deposit of Rs
20000/- or more in a branch, as principal or interest, no cash payment be made. As per section
271-E of the income tax act, where a bank fails to comply with this provision i.e. make cash
payment, it is liable for_____.
a. Payment of simple interest of 12% from the date the payment was made,
b. Imprisonment from 3 months to 7 years,
c. Penalty of a sum equivalent to the amount paid in cash,
d. Penalty of sum equivalent to the amount of deposit so paid
e. Penalty ranging between 25000 to Rs 2 lacs.
25.To improve customer service for outstation investors, banks have been advised to pay half-
yearly interest/principal of relief / savings bonds to investors at a place of their choice by
_______:
a. Issue of a demand draft, free of cost, b. At par cheque payable at all branches of the
bank
c. Cash Delivery through Courier service d. a or b
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26. A software that restricts the access to and from a network and is designed to protect from
outside intrusion is called :
a. Firewall technology b. Network Protection technology
c. Virus protection technology d. Morphing
27. What is John Shephard Baron’s contribution to Banking , the idea of which struck him as he
stretched out in his bath after a long wait at the bank counter?
a. Credit Card b. Debit Card c. ATM d. Master Card
28. Committee for computerization in Bank:

a. Rangarajan Committee –1984 b. Rangarajan Committee (Second)-1989
c. Saraf Committee – 1993 d. Vasudevan Committee-1998 e. All of the above.
29. As a part of the Fair Lending Practices Code, Banks and FIs advised to invariably furnish a
_______ along with a copy each of all the enclosures at the time of disbursement.
a. Copy of the loan agreement b. Copy of their own Balance sheets
c. Copy of their NPA Policy d. All of the above
30. In a computer software , the term ‘morphing ‘ refers to which of the following:
a. Animation technology in which one image is gradually turned into another .
b. Data conversion technique by way of use of codes, c. Conversion of digital picture to analog images
d. A softer that saves a network form intrusion, e. Software that links one server to
another
31. The term ‘WAN’ stands for –

a. World Area Network b. Wide Area Network
c. World Application Net d. Wide Application Network
32. Open Systems Interconnection (OSI) Model consists of ___________.

a. 5-layers b. 6-layers c. 7-layers d. 8-layers
33. A flaw in a program that causes it to produce incorrect or inappropriate results is called a __.
a. Byte b. Attribute c. Unit Problem d.Bug
34. A collaborative network that uses Internet Technology to link business with their suppliers is
________.
a. Internet b. Intranet c. Extranet d. WAN
35. Internet is _________.

a. Network of LAN b. Network of ATMs c. Network of ALPMs d. Network of
Networks
36. ‘PIN’ in Smart Card is called _____.

a. Permanent Index Number b. Personal Identification Number
c. Personal Index Number d. Permanent Identification Number
37. A MODEM is connected in between a telephone line and a _____

a. Network b. Computer c. Communication Adapter d. NIC
38. “Buy Now – Pay Now” is commonly used for _________.

a. Debit Cards b. Vault Cards c. Credit Cards d. E-purse
39. A leased line can transmit _________.

a. Only Data / Text b. Only Voice c. Only Video d. All the above
40. ‘MICR’ technology used for clearance of cheques by banks refers to______.
a. Magnetic Ink Character Recognition b. Magnetic Intelligence Character Recognition
c. Magnetic Information Cable Recognition d. Magnetic Insurance Cases Recognition
ANSWERS
1 D 2 B 3 B 4 A 5 D 6 D 7 B
8 D 9 A 10 A 11 E 12 B 13 D 14 A
15 C 16 A 17 C 18 A 19 D 20 B 21 C
22 A 23 B 24 D 25 D 26 A 27 C 28 E
29 A 30 A 31 B 32 C 33 D 34 D 35 D
36 B 37 B 38 A 39 D 40 A
8
9
TEST III
1. The technique is used to produce a “fingerprint” of a message as a part of digital signing ____.
a. Scrambling b. Extracting c. Hashing d.
Condensing
2. Foreign Insitutional investment (FII) stake in a private bank can be maximum:

a. 24% b . 26% c. 49% d. 51%
3. Against the pre-shipment credit, the refinance is available from ___ maximum for ___ days:
a. RBI, 90 days, b. EXIM Bank, 90 days c. Exim Bank, 180 days d.
RBI,180 days
4. According to the report of 'Center for Monitoring of Indian Economy', which state has
emerged as the top state in the country in terms of per capita investment in 2007?
a. Maharashtra b. Andhra Pradesh c. Delhi d. Haryana e.
Gujarat
5. In 11th 5-year plan, the GDP growth rate planned to reach in the last year is:
a. 11% b. 10% c. 9.5% d.
9%
6. The aggregate ceiling for overseas investment by Mutual funds registered with SEBI, has been
enhanced from USD ______billion to USD _________billion.
a.4:5 b. 400 . 500 c. 300 : 500 d. 200 : 500 e. None of
the above.
7. Interest Subvention of 2% and 4% announced on select export advances and SME export
advances. Accordingly, the maximum rate of interest that a bank can charge for an Exporter
eligible for 4% interest subvention is__________:
a. BPLR-6.5% b. BPLR-4.5% c. BPLR-2.5% d. Left to banks’
discretion
8. The only state in India, which was so far out of the VAT range and has now decided and
recently adopted VAT is_________?
a. Bihar b. Chhatisgarh c. Rajasthan d. Uttar Pradesh e. Madhya
Pradesh
9. As per revised RBI guidelines on Priority sector, Banks should not insist for "No Dues or
Status certificates" from small borrowers up to a limit of:
a. Rs50, 000 b. Rs.25000 c. Rs 100 000 d.
Rs 10,000
10. Under SARFAESI Act 2002, ___ days notice for recovery of possession is to be given :
a. 15 days b. 30 days c. 60 days. d. 90 days
11. As per RBI guidelines, loans against security of shares, convertible bonds, convertible
debentures and units of equity oriented mutual funds to individuals from the banking system
should not exceed the limit of____ per individual for securities in physical form and ______per
individual for securities held in demat form.
a. Rs.10 lakh, Rs 20 lakh b. Rs20 lakh, Rs 25 lakh c. Rs.10 lakh, Rs 25 lakh d. Rs 20 lakh, Rs 50
lakh
12. CRR is fixed by RBI under :

a. Section 24 of RBI Act b. Section 42 of RBI Act.
c. Section 42 of Banking Regulation Act d. Section 24 of Banking Regulation Act
13. For loans to Individuals for subscribing to Initial Public Offers (IPOs), the ceiling is ____as
prescribed by RBI.
a. Rs.10 lakh b. Rs.20 lakh c. Rs. 25 lakh d. Rs 50 lakh
14. In terms of existing guidelines, requests for payment in cash by foreign visitors/non-residents
Indians may be accepted to the extent of USD____ by Authorized Money Changers. This limit
has been increased to_______.
a. USD 2000 : USD 3000 b. Rs 50000 : Rs 1 lacs c. Nil : Rs 49999/-
d. USD Nil : USD 3000 e. None of the above.
10
15. A uniform margin of ____is applicable on all advances I financing of IPOs I issue of
guarantees for capital market operations.
a. 25% b. 50% c. 40% d. Left to the
banks
16. Which one of the following is not true with regard to latest RBI guidelines on Asset Liability
Management?
a. The 1st bucket of 1 to 14 days in Statement of Structural Liquidity be split into three buckets viz
Next day, 2 to 7 days and 8 to 14 days.
b. The net cumulative negative mismatches should not exceed 5%, 10%, 15% & 20% respectively.
c. The statement of Structural Liquidity be prepared on daily basis,
d. The statement of Structural Liquidity be reported to RBI on fortnightly basis w.e.f fortnight
beginning from April, 1 2008.
17. Smart Card is _____.

a. Special purpose Cards b. Credit Card
c. Processing unit contains memory for storing data d. Processing unit for software handling
18. TDS on interest paid on term deposit, be deposited with Income tax department within:
a. 7 days of the deduction of tax b. 7 days from the close of month, in which tax is
deducted,
c. 10 days of the deduction of tax d. 10 days from close of month, in which tax deducted,
19. The word “FTP’ stands for __________.

a. File Translate Protocol b. File Transit Protocol
c. File Typing Protocol d. File Transfer Protocol
20. Threats of physical damage to the hardware is from ______.

a. Natural Calamities b. Power Fluctuations
c. Electro Magnetic Effects d. Magnetic Devices
21. A collection of raw facts is called ________.

a. Output b. Information c. Bits d. Data
22. NABARD provides grant support to various activities of Farmers Clubs for a period of 3
years on cost sharing basis from the first year itself. The pattern of cost sharing between
NABARD and Sponsoring Commercial Banks for all the activities supported by NABARD would
be:
a. 50 : 50 b. 2/3rd: 1/3rd c. 25 : 75 d. 75 : 25 e. None of
the above.
23. Which one of the following is the amount of remittance allowed in the shape, of foreign
exchange for medical treatment abroad when no cost estimates has been submitted by the
treating hospital?
a. Equal to Rs 1 lac, b. Equal to USD 1 lac, c. Equal to Rs 10 lacs,
d. Equal to USD 10000, e. Nil, when no cost estimates are submitted.
24. INFINET(Indian Financial Network) was developed by

a. RBI b. SBI c. PNB d. IDRBT
25. BCTT collected should be .deposited with the Govt by_____ of next month.
a. 7th b. 15th c. 21st d. End e. None of
the above.
26. The term ‘HTML’ connotes_________.

a. Hyper Text Markup Language b. Hyper Transcription Markup Language
c. High Text Markup Language d. High Terminal Markup Language
27. The primary communication protocol on Internet is ________.

a. IPX b. NETBIOS c. TCP/IP d. EPBX
11
28. A result of a computer virus cannot lead to_______.
a. Disk Crash b. Mother Board Crash
c. Corruption of program d. Deletion of files
29. As per our guidelines, borrowers enjoying FB limit above Rs_____crores would normally be
under consortium arrangement?
a. Rs 10 crores, b. Rs 25 crores, c. Rs 50 crores,
d. Rs 100 crores, e. No formal ceiling, depending upon merits of the case
30. A promissory note issued as payable to bearer violates :

a. Section 31 of RBI Act. b. Section 31 of Banking Regulation Act.
c. Section 31 of Negotiable Instrument Act. d. None of these
31. Maximum shopping limit on POS for PNB Debit Card (GOLD) per day is _____.
a. Rs. 15000/- b. Rs. 20000/- c. Rs. 60000/- d. Rs.25,000/-
32. A Bancmate system uses

a. LAN b. WAN c. MAN d. BANKNET
33. Working capital borrowal account, becomes out of order as per RBI norms, where drawing
power is based on stock statement old than :
a. 12 months b. 6 months c.3 months d. no such provision
34. A scanner is a________.

a. Input device b. Output device c. Processing device d. None of these
35. As per Consumer Protection Act 1986, limitation period for complaint to be filed is :
a. 3 years. b. 2 years. c. 1 years. d. ½ years.
36. Which of the following operations cannot be done through PNBs’ Internet Banking Service
a. Balance enquiry b. Fund Transfer c. RTGS d. All can be done
37. LINUX is a
a. Operating system b. Application software c. Programming Language d. RDBMS
38. PNBs’ Internet Banking Services can be made available to

a. All customers of the bank b. All customers of CBS / Bancmate branches
c. All customers of CBS branches d. All customers having SB / CA account
39. An authorized dealer – category 1 bank can remit up to ___ $, the advance payment against
import of goods:
a. 10000 b. 50000c. 100000 d. no such remittance is permitted.
40. For Pre-shipment credit in foreign currency, the rate of interest is:
a. as per ceiling rate fixed by RBI b. rate of interest linked to LIBOR
c. rate of interest linked to SWAP d. at discretion of the bank concerned
ANSWERS
1 C 2 C 3 D 4 D 5 B 6 A 7 A
8 D 9 A 10 C 11 A 12 B 13 A 14 A
15 B 16 E 17 C 18 B 19 D 20 A 21 D
22 A 23 B 24 D 25 B 26 A 27 C 28 B
29 C 30 A 31 C 32 A 33 C 34 A 35 B
36 D 37 A 38 C 39 C 40 D
12
TEST
1. Charge of a car financed to a limited company, will be got noted with :

a. RoC only b. RTO only c. RoC and RTO both d. Being a transport advance,
no where
2. The systematic risk and settlement risk can be managed with implementation of which of the
following:
a. RTGS b. SWIFT c. Digital signatures d. CBS
3. Non-disclosure of information of customer’s account by the bank is an :
a. Provisions of Secrecy Act b. Provisions of Indian Contract Act
c. implied contract d. express contract
4. Under group exposure guidelines of RBI, the exposure ceiling for individual borrower is:
a. 15% of capital fund of the bank b. 12.5% of the capital fund of the bank
c. 12.5% of the networth of the bank d. 15% of the networth of the bank
5. Maximum interest subvention in case of export credit is restricted to:
a. 2% with the condition that minimum interest rate should be 9%
b . 4% with the condition that minimum interest rate should be 9%
c. 2% with the condition that minimum interest rate should be 7%
d. 4% with the condition that minimum interest rate should be 7%
6. In terms of Section 20(1) of the Banking Regulation Act, 1949, a bank cannot grant any loans
and advances:
a. On the security of its own shares b. On security of privately held Companies
c. On security of publicly held Companies d. All of the above
7. Period for appeal by customer against a decision, under Banking Ombudsman scheme is :
a. 15 days from date of receipt of copy of the decision.
b. 30 days from date of receipt of copy of the decision.
c. 30 days from date of the decision. d. 45 days from date of the decision.
8. As per new RBI guidelines, Banks should obtain __for properties valued at Rs. 50 crore or
above.
a. Min. two independent valuation reports b. Min. three independent valuation reports
c. One independent & one In-house report d. Banks are free to decide
9. Retail trade limit of Rs.___ lac (other than essential commodities) is to be classified under PS
Advances :
a. 10 lac b. 15 lac c. 20 lac d. no ceiling
10. As per latest RBI guidelines, a minimum cash margin of ____ within the overall margin
of____ should be maintained in the case of Advances against shares.
a. 25%,50% b. 10%,20% c. 25%, 60% d. 25%, 40%
11. Housing loans to individuals (other than staff) up to maximum of Rs.___ lac are to be classified
under PS credit :
a. 20 lac b. 15 lac c. 10 lac d. Rs.10 lac in rural and Rs.15 lac in urban areas
12. RBI has advised Banks that they should not sanction loans for acquiring:
a. NSC b. Kisan Vikas Patras (KVPs) c. Other Small saving instruments d. All of the
above
13. Indian banks to maintain_______ minimum capital required as per RBI guidelines on Basel-
II norms. Tier-I capital to be at least__________%.
a. 8, 4 b. 9.45 c. 9.4 d. 9.6
14. Three days grace is allowed by the NI Act for
a. Demand bill b. All negotiable instruments c. Usance instruments d.None
of the above
15. Firewalls are used to protect against ____________.
a. Unauthorised Attacks b. Virus Attacks c. Data Driven Attacks d. Fire Attacks
16. Which of the following error code in RTGS indicates Transaction cancelled by RBI
a. R01 b. R02 c. R03 d. R04
17. The____ converts digital signals to analog signals for the purpose of transmitting data over
telephone lines.
a. Modem b. Router c. Gateway d.
Bridge
18. In which of the following mandate, debit card cannot be issued
a. Either or survivor b. Former or survivor c. Anyone or survivor
d. self
19. For greater financial inclusion some modifications have been made in PNB MITRA SAVING
FUND SCHEME. As per the modified provisions, in accounts where minimum monthly balance for
the last three months is Rs 5000 and above, OD facility upto Rs_____ may be granted.
a. 2000 b. 1000 c. 1500 d. 500 e. None of the above.
13
20. As per the recommendations of the Nayak Committee minimum working capital requirement
for a unit is equivalent to –
a. 15% of estimated sales b. 20% of Estimated sales
c. 25% of Estimated sales d. 30% of estimated sales
21. As per Banks Housing Loan Scheme for Public, repayment should be fixed on realistic basis. For
the purpose of all deductions including the proposed Housing Loan Instalment should not exceed 50%
of the gross Income. However, in cases where gross monthly salary is above Rs 50000/-, deductions
can be permitted.upto_________ .
22. Which of the following storage media is volatile
a. RAM b. ROM c. Hard disk d. CDROM
23. Retail Lending will continue to be a thrust area for the bank and the aim of the bank is to increase
its share 22% of gross advances and gradually increase it ______of the gross advances in a phased
manner.
24. The ____ directory is mandatory for every disk.
a. Root b. Base c. Sub d. Case
25. To address the financial needs of Sr Citizens owning self occupied property (house) for leading a
decent life, PNB Baghban, Scheme has been floated. As per the scheme, in case of Joint accounts, one
of the spouse must be of the age of 60 years while the age of other spouse should be
minimum____years.
a. 50 b. 52 c. 55 d. 58 e. 60 f. None of
the above.
26. Smallest storage unit of a computer is ---
a. Bit b. Byte c. Nibble d.
Pixel
27. As per the recent amendment carried out to Credit Guarantee Fund Trust for Micro & Small
Enterprises (CGTMSE), which one of the following is not correct with regard to categories for
which guarantee cover has been enhanced from 75% to 80%?
a. Loans to Micro Enterprises upto Rs 25 lacs.
b. Loans to Micro and SmallEnterprises operated/owned by women,
c. Loans in North Eastern Region irrespective of the amount. d. (1) & (2) e. (1), (2) & (3)
28. ‘SQL’ stands for –
a. Sequential Query Language b. Sequence Queue Language
c. Sequential Quote Language d. Sequel Quarry Language
29. As at August 31, 2007, total number of RRBs has declined from 196 to______.
a. 95 b. 85 c. 75 d. 65 e. 55
30. The word ‘ISDN’ stands for –
a. Internal Service Digit Network b. Integrated Services Digital Network
c. Information Service Digital Net d. Internal Server Digit Network
31. For scientific applications most useful language is –
a. COBOL b. FORTRAN c. SQL d. HTML
32. The Basel Accord covers Credit Risk, Market Risk and Operational Risk. As regards other risks the
same are proposed to be captured through:
a. minimum capital requirements b. supervisory review process
c. market discipline d. none of the above
33. ‘Multiplexing’ means –
a. a technique to enable more than one signal to be sent simultaneously over one physical channel
b. a technique to enable one signal over one channel
c. a technique to enable one signal over many channels
d. a technique to enable one signal over multiple channels
34. The term ‘TCP/IP’ stands for –

a. Transmission Control Protocol/Internet Protocol b. Transit Control Protocol/Internal Protocol
c. Transfer Concept Protocol/Intermediate Protocol d. Transit Concept Protocol/Interval Protocol
35. Payroll System is essentially –
a. Online b. Batch Processing c. Real Time d. Transaction
processing
36. Which one of the following is not associated with Market Risk?
a. interest rate risk b. equity rate risk c. sovereign risk d. commodity price risk
37. As per the latest policy of National Housing Bank for refinance, Individual housing loans upto
Rs _____each, for acquisition/construction of new dwelling units only, will be eligible for
refinance.
a. 20 lacs b. 50 lacs c. 5 lacs d. 251acs e. None ofthe above
14
38. The risk that arises due to use of obsolete or untested technology which is not fully in line with
business needs, lack of trained staff and their response to new technology is known as-
a. operational risk b. market risk c. liquidity risk d. credit risk
39. The quarterly financial results of Scheduled Commercial Banks are published under the provision
of or under the directions issued by________.
a. RBI b. Companies act c. SEBI d. Govt of India e. IBA
40. It has been decided to raise the limit of loan under Differential Rate of Interest (DRI) scheme from
Rs 6500 to Rs______and housing loan from Rs ______ to Rs 20000/- per beneficiary.
a.15000: 6500 b.20000:6500 c. 15000 : 20000 d. 15000 : 5000 e. 20000 :
5000
ANSWERS
1 C 2 A 3 C 4 A 5 D 6 A 7 B
8 A 9 C 10 A 11 A 12 D 13 D 14 C
15 A 16 C 17 A 18 C 19 A 20 C 21 B
22 A 23 A 24 A 25 D 26 A 27 A 28 A
29 A 30 B 31 B 32 B 33 A 34 A 35 B
36 C 37 B 38 A 39 C 40 D
15
1. Financial statements have a limitation period of : _______
a. 3 years b. 2 years c. 1 year d. nil
2. In which one of the following, Repurchase Option (REPO) or ready forward transactions are
permitted?
a. Commercial Paper b. Certificate of Deposit c. Treasury Bills d. Govt Securities e.
All
3. A Cheque bears an impossible date, viz, 31st November________:
a. Cheque cannot be paid b. Pay on the last working day of Nov.
c. Pay on the 151 day of December d. Can pay on the last business day of November
4. Repo/Reverse repo transactions are undertaken between RBI and__________.
a. All Members of NOD-OM b. Primary Dealers, FIs & MF
c. Primary Dealers, FIIs, & MFs d. Individuals, Trusts, Corporate Bodies, PDs,
MFs
e. Banks only
5. 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.
6. Memory Management through ‘Paging’ is controlled by –
a. OS b. CPU c. RAM d. ROM
7. Bio-metric Recognition does not include –
a. Finger Print and Palm Print b. Voice Print and Eye Retina
c. Hand Geometry and Typing Rhythm d. Body Print and Head print
8. Loans against NRE/FCNR term deposits to Account holders I Third parties is to be restricted
to Rs____ as per RBI guidelines.
a. 10 lacs for NRE b. 20 lacs for FCNR c. Both a & b d. 20 lacs for both
NRE I FCNR
9. The following cannot be done by virus .
a. Loss of Data b. Deletion of File c. Physical Damage to Keyboard c. Corruption of
Program
10. Exposures to _____,_______are now treated as part of a Bank's exposure to Capital markets.
a. Venture Capital funds b. Equity Oriented Mutual Funds c. Both a & b d. Neither A nor B
11. Reserve Bank of India has advised that credit flow to minority communities is now to be specially
monitored in________ identified districts having at least ________ minority population.
a. 103:20 b. 121 : 25 c. 131 : 25 d. 141 : 20 e.151 :No such
restriction.
12. Risk weight on loans up to Rs 1 lakh against _______is reduced to 50% from 125%.
a. Residential property b. Shares c. NSC d. Gold & Silver
ornaments
13. The extent of guarantee cover under Credit Guarantee Fund Trust Scheme for Micro and Small
Enterprises has been raised from 75% to 80% for certain category of borrowers? Which one of the
following is not among the eligible borrowers?
a. Loans to Micro Enterprises upto Rs 5 lacs
b. Loans to Small and Micro Enterprises operated by women
c. All loans to North Easter Region irrespective of the amount
d. All loans to SC/ST Borrowers e. None of the above.
14. Proforma of cheque is laid down in Section ____ of ___ Act :
a. only practice b. court judgement
c. Section 13 of NI Act d. Section 31 of RBI Act
15. Which one of the following best explains the term "Shell Bank"?
a. A Bank, which is incorporated in a country where it has no physical presence.
b. A bank which is incorporated to take deposits only and invests in 100% secured Govt securities only.
These banks normally charge huge service charges from their depositors to earn profits. These types of
banks are normally in Switezerland & other small European countries.
c. A bank which is having 100% of its branches in a country in which it has been incorporated i.e. no
foreign branch.
d. A bank incorporated in Islamic country on the, principles of Islamic Banking. e. None of the
above.
16. For all loans sanctioned in North Eastern Regions, Credit Guarantee Fund Trust, has reduced the
one time upfront fee for coverage under CGTMSE from 1.50% to_________.
a. 0.50% b. 0.75% c. 0.375% d. 0.125% e. None of the above.
17. In Annual Information Report, Cash deposits aggregating to _____or more in a year in a
Savings account is to be submitted to IT Commissioner directly by the branch.
a. Ten lakh rupees b. Rs 20,00,000 c. Rs One crore d. Need not report
16
18. As per RBI report________ of the citizens are yet to financially included to the Banking
System.
1. 21% 2. 31% 3. 41% 4. 51% 5. 61%
19. Annual Information Report is to be filed with______________:
a. The Commissioner of Income Tax (Central Information Bureau). b. FIU, Ministry of Finance
c. Enforcement Directorate d. Economic Intelligence wing,
CBI
20. As per PNB norms maximum exposure to a partnership firm can be ______?
a. 50 Crores b. 25 Crores, c. 75 Crores, d. 150 Crores, e. 100 Crores
21. HTML tag _______
a. <P> b. <- c. -> d. dir
22. A situation of negative net working capital arises when:
a. current assets are more than current liabilities b. current liabilities are more than
current assets
c. long term uses are less than long term sources d. short term sources are less than short
term uses
23. Minor can draw, negotiate, transfer, endorse negotiable instruments but:
a. He is liable if cheque is dishonoured b. he is liable for endorsement
c. he is not liable personally d. he is liable personally but nothing can be recovered
from him
24. Under PNB Kalyani Card Scheme total credit summations in the a/c, for the last 12 months,
should be equal to__________ ?
a. Total Debits b. Total limit c. Max. outstanding during the
year
d. Equal to intt levied e. None of the above.
25. Working capital margin should be met from :
a. Surplus of long term uses over long term sources b. Surplus of profit and loss account
c. Induction of interest free funds by the promoters d. Surplus of long term sources over long term
uses
26. Not negotiable crossing means :
a. where facility of further transfer is automatically withdrawn.
b. where facility of defect free title available is automatically withdrawn
c. where facility of defect free title and further transfer is automatically withdrawn.
d. there is no impact on the instrument
27. Which one of the following has been appointed as Chairman of 13th Finance Commission?
a. Montek Singh Aluwalia b. Dr Manmohan Singh (Ex-Officio)
c. Vijay L Kelkar d. Pranab Mukherjee e. Sita Ram Yucheri
28. At the time of retiring of Import bill under Foreign Import letter of credit, the importer is to
submit:
a. Form A4 b. Form A2 c. Form A1 d. Form A2
and A4
29. Garnishee order can be served if the relationship of banker and customer is that of :
a. creditor and debtor b. debtor and creditor c. agent and principal d. trustee and
beneficiary
30. Which one of the following correctly represents the maturity periods of T-Bills presently in
vogue?
a. 91 days, 182 days, 364 days b. 91 days, 182 days
c. 14 days, 91 days, 182 days d. 14 days, 91 days, 182 days, 364 days e. None of the
above.
31. If amount of cheque is paid by the bank before realization, the bank becomes :
a. holder in due course b. holder only c. holder for value. d. holder for value and
holder.
32. For import. of goods under negative list, licence is given by:
a. RBI b. Ministry of Commerce c. DGFT d. Customs
33. Not furnishing AIR will attract penalty at ________:
a. Rs. 100 per day b. Rs. 500 per day c. Rs 1,000 per day d. No monetary
penalty
34. Which one of the following instruments are issued for a minimum of Rs 1 lacs and in multiple
thereof? a) T-Bills b) Commercial Paper c) Certificate of Deposit
a. a) & c) only b. b) & c) only, c. c) only, d. a)&b)only e. b)&c)only
35. Negative Lien implies:
a. Mutual agreement between bank and company
b. Undertaking not to charge assets without obtaining bank's prior consent
c. Creating equitable charges over assets which are not given expressly as Security by the Company.
d. None of the above
17
36. Which one of the following instruments has no relation with regard to maintaining of SLR/CRR by
the banks.
a. Repurchase Options, b. Call Money/Notice Money market c. T -Bills
d. Commercial Paper e. Certificate of Deposit
37. The purpose of funds flow statement is :
a. to see the sources of funds only. b. to see the uses of funds only
c. to see the sources and use of funds d. to see the diversion of funds.
38. Authorized dealers allow Importers and Exporters to book forward contract on the basis of
_____ other than underlying contracts.
a. Average of previous three years actual import / export turnover
b. Previous year's actual import /export turnover c. A or B whichever is higher
d. Only exporters can book as above
39. A Pakistani national of Indian origin wishes to open NRI account: What decision you would
take?
a. Decline his request because he is not considered a NRI
b. Open the account because he is not a resident of India
c. Collect his necessary documents and seek RBI's permission
d. Seek head office approval
40. Forged notes received in branch from a customer :
a. should be returned to the customer in any case and must be impounded.
b. should not be returned to the customer in any case and must be impounded.
c. Handed to Police d. None of these
ANSWERS
1 D 2 C 3 D 4 E 5 C 6 A 7 D
8 D 9 C 10 C 11 B 12 D 13 D 14 A
15 A 16 B 17 A 18 C 19 A 20 C 21 A
22 B 23 C 24 C 25 D 26 B 27 C 28 C
29 B 30 A 31 C 32 C 33 A 34 A 35 B
36 D 37 C 38 C 39 C 40 B
18
1. Financial Inclusion means:- providing of banking services to the people______.
a. Delivery of banking services at affordable cost b. Where they want to have facility but there is no
bank
c. Who have a/c but no loan facility d. To increase income of the BPL families.
2. A bank can purchase NPA from another bank if it is categorized as NPA for a minimum
period of_________.
a. 1 year b. 2 years c. 4 years d. 5 years
3. The 'Educational Loans' were classified as a part of 'Consumer Credit' for the purpose of
Capital adequacy, and accordingly attracted a risk weight of 125 %. However, as per the revised
guidelines, under Basel - II framework, the Educational loans, now no longer being a part of
Consumer Credit would be treated as a component of the regulatory retail portfolio and attract
a risk weight of _________ % as against 125% at present:
a. 150 b. 130 c.100 d.75 e. None of
the above
4. To attract quality advances, higher loaning powers have been vested with sanctioning officials in the
rank of CMs/RMs and above. As per the loaning power chart an officer of AGM level can exercise
their loaning power in respect of AA/ AAA and "A" rated borrowers up to____ and____% of normal
loaning powers.
a. 100-110 b. 100-125 c. 110-125 d. 125-110 e.
125-100
5. Which one/s of the following instruments is not issued in the form of Promissory Note?
a. T-Bills , b. Commercial Paper, c. Certificate of Deposit
a. a)&c) b. a) only c. b)&c)only d. a), b) & c) onlye. None of the above.
6. As per insurance policy for cash taken from New India Assurance Co. for cash remittance to the tune
of Rs. 15.00 lacs from a branch, which is not attached with the Link Chest Branch, it should be
accompanied by _________?
a. Cashier & officer b. Cash Officer Only c. Cashier + officer + Armed
Guard
d. cashier + officer + Guard (Armed or Unarmed) e. None of the above.
7. While considering sale and purchase of Nonperforming assets, Banks are advised to ensure
that at least _______% of the estimated cash flows should be realized in the first year & at least
________% in each half year thereafter, subject to full recovery within three years.
a. 10%, 5% b. 5%,10% c. 5%, 20% d. All stipulations
withdrawn
8. RBI has recently advised that with effect from April 1, 2008 all payment transactions of
Rs._____crore and above between RBI regulated entities i.e. banks, primary dealers and NBFCs as
well as in RBI, regulated markets i.e. money market, Govt. Securities market and foreign exchange
market may be mandated to be undertaken through electronic mode only.
a. 50 b. 1 c. 1.5 d. 2
9. Which one of the following is not a criteria for compulsory filing of e- TDS return?
a. Govt. Deductors, b. Corporate Deductors
c. Persons whose accounts are to be audited under section 44AB in the immediately preceding financial
year.
d. Deductors who have 50 deducted records or more for any quarter of the immediately preceding
financial year.
e. Deductors who have deducted or will deduct in the coming quarter an amount equivalent to Rs 50
lacs or more.
10. RBI guidelines stipulate that the tolerance level of Re-issuable notes in the soiled banknote
remittance to RBI is lowered from the existing _________to_______ of each remittance:
a. 10%, 5% b. 20%,15% c. 15%,10% d. 10%, 3%
11. Under the new definition of Micro, Small and Medium Entp. a unit can be a Small Service
Enterprise if total investment in equipment is between ____Crs. and _____Crs.
a. 0.10 : 2.00 b. 0.25 : 2.00 c. 0.50 : 2.00 d. 0.25 5. 1..00 e.
5.00 5_00
12. As per current RBI guidelines, banks are now prohibited from granting fresh loans in excess
of Rs. _______against the NRE and FCNR (B) deposits, either to depositors or to third parties.
a. Rs 20Iacs b. Rs 25 lacs c. Rs.50 lacs d. No restriction
13. As per the latest guidelines of the bank, FDR shall be automatically renewed on maturity. However
a customer has the option to change the tenor of auto renewed FDR within_____ days of renewal of
FDR.
a. 14 days b. 15 days c. 30 days
d. Any time before maturity of auto renewed deposit, e. None of the above.
19
14. In respect of short-term production credit upto Rs. 3 lac to farmers, Government scheme of interest
subvention of 2% will be available to Public Sector Banks on the condition that they make available
short-term credit at ground level at ________ p.a .
a. 6 % b. 7 % c. 8% d. BPLR rate
15. The Competition (Amendment) Bill, 2007, has been passed by the Lok Sabha. Out of the
following which is incorrect with regards to the objective of the Bill passed:
a. It lays down strict norms for disclosures of mergers and acquisitions (M&As) to prevent corporations
from building dominant market positions artificially.
b. To prevent cartelization, predatory pricing and deliberate attempts to prevent market access by a
group of companies.
c. To ensure compliance of Corporate Governance guidelines.
d. To ensure Corporate Debt Restructuring and Stress Funding.
e. a and b above
16. If any bank wishes to migrate to Internal Rating Based Approach (IRBA) for Credit risk and
Standardised Approach or the Advanced Measurement Approach( AMA) for operational risk
____ is required.
a. Minimum capital adequacy of 12% b. Prior RBI approval
c. Both of the above d. Neither of the above
17. RBI has permitted banks to undertake Pension Funds Management (PFM) and has laid
down the eligibility conditions. Out of the following which is incorrect w.r.t. PFM?
a. The Net Worth of bank should not be less than Rs500cr
b. Capital to risk weighted assets ratio (CRAR) should be not less than 11 per cent during the last three
years
c. The bank should have made net profit for the last three consecutive years.
d. Return on Assets should be at least 0.6 per cent or more.
e. Level of net non-performing assets (NPAs) should be less than 3 per cent.
f. None of the above.
18. A________ sometimes called a boot sector virus, executes when a computer boots up because it
resides in the boot sector of a floopy disk or the master boot record of a hard disk.
a. System Virus b. Trojan Horse virus c. File Virus. d. Macro Virus e. None of the
above
19. If an Exporter customer wishes to avail the facility of booking forward contracts based on his
past performance, the condition to be complied is that the amount of overdue bills outstanding
on date should not exceed _________% of the turnover (past performance).
a. 1 0% b. 25% c. 5% d. No such condition now
20. The modified Banking Ombudsman scheme (May 2007) provides for appeal by a customer
aggrieved by the______ by the Banking ombudsman which was not available earlier.
a. Rejection of his application b. Award c. Delay d. All of the above
21. Sensitivity Tests & Scenario Tests are two types of:
a. Stress Testing b. Credit Rating c. Securitization d. None of these
22. Scheduled Commercial Banks and Primary Dealers are allowed to cover their short positions
in Central Govt. securities within an extended period of ________ trading days.
a. Ten b. Five c. Three d. Twenty four hours
23. An applet_________ ?
a. Is an interpreted program that runs on the client, b. Tracks the number of visitors to a website,
c. Is a compiled program that usually runs on the client, d. Collects data from visitors to a
website,
24. The rate to be applied for crystallizing / delinking of export bill:
a. Bill buying rate b. TT selling rate c. Bill selling rated. TT Buying rate
25. The ceiling under Liberalized Remittances scheme for Resident Indians is now ____ per
financial year:
a. USD 50,000 b. USD 100000 c. USD 2,000,00 d. USD 250,000
26. As per the new RBI's guidelines on Asset Liability Management, Banks are to adopt a more
granular approach and include more time buckets in their ALM maturity ladders such as_____:
a. Next day b. 2-7 days c. 8-14 days d. All
27. With a view to encouraging wider participation and retail holding of Government securities,
RBI has introduced "non-competitive" participation in dated Government of India (Gol)
securities up to ______ percent of the notified amount in select securities recently.
a. Ten b. Five c. Fifteen d. One
28. The eligible loans guarantee limit (fund based + non fund based) for Micro & Small
enterprises under the CGTMSE is now raised to Rs______:
a. 25 lacs b. 50 lacs c. 75 lacs d. 100 lacs
20
29. Banks can give loans to employees to buy shares of their own companies ( Employee Stock
Option Plans) to the extent of _____ of the purchase price of the shares subject to a maximum of
Rs. 20 Lakhs:
a. 40% b. 50% c. 75% d. 90%
30. Refund of Stamp duty in case of print document which are no longer required by bank can be done
by collector within:
a. One month from the purchase of document.
b. Two months from the discontinuation of document.
c. Six months from the date of purchase. d. No time limit. e. None of the above.
31. As per the RBI guidelines, the maximum repayment period in Infrastructure project is:
a. 7 years b. 12 years c. 15 years
d. To be determined by bank keeping in view the maturity profile of the liabilities and requirement of
the project
32. In the new UCPDC,_______ has been added under the Force Majeure clause (article 36)
which was not there earlier.
a. Tsunami b. Acts of Terrorism c. Both d. Neither
33. Banks can raise up to________ of the total Tier-I capital in the form of Perpetual debt:
a. 5% b. 10% c. 15% d. 25%
34. As per revised RBI guidelines on Priority sector, Banks should not to insist for "No Dues or
Status certificates" from small borrowers up to a limit of:
a. Rs.50, 000 b. Rs.25000 c. Rs.1 00, 000 d. Rs.1 0,000
35. The recent disruption in internet services in India and some other parts of the world was
caused by the damage of
a. SEA-ME-WE-1 network system, b. SEA-ME-WE-2 network system, .
c. SEA-ME-WE-3 network system, d. SEA-ME-WE-4 network system,
36. Women assesses are exempted from payment of Income tax upto Rs._______ as per Union
Budget 2008:
a. Rs. 1,50,000 b. Rs. 1,80,000 c. Rs. 2,00,000 d. Rs. 2,25,000
37. The minimum amount in US$ that can be purchased by a Commercial bank from Reserve
Bank of India?
a. USD 500,000 b. No minimum c. USD 100,000 d. USD One million
38. As per the new UCPDC 600, banks are allowed _________Banking days for examination of
documents / conveying refusal.
a. 5 b. 6 c. 7 d. Only 24 hours
39. RBI has recently clarified certain issues with regards to charging of interest under the DRI
scheme. Which of the following is not correct?
a. Banks can provide individual loans up to Rs. 15,000/- at a concessional rate of interest of 4% p.a. to
the weaker sections of the community for engaging in productive and gainful activities.
b. In addition, members of SC/STs satisfying the income criteria of the scheme can also avail of
housing loan up to Rs. 20,000/- per beneficiary over and above the individual loan of Rs. 15,000/-
available under the scheme.
c. Both of the aboved. None of the above
40. Govt. in consultation with the RBI, has revised the ceiling for the outstanding under the
Market Stabilization Scheme (MSS) for the year 2007-08 to_______ crore:
a. Rs.1 ,25,000 b. Rs.1 ,50,000 c. Rs.1 ,70,000 d. Rs.2,00,000 e.
Rs.2,50,000
ANSWERS
1 A 2 B 3 D 4 D 5 E 6 D 7 A
8 B 9 E 10 A 11 A 12 A 13 A 14 B
15 E 16 B 17 F 18 E 19 A 20 A 21 A
22 B 23 C 24 B 25 C 26 D 27 B 28 B
29 D 30 D 31 D 32 B 33 C 34 A 35 D
36 B 37 D 38 A 39 D 40 E
21
TEST
1. ________ is a centralized payment system in which, inter-bank payment instructions are processed
and settled, transaction by transaction (one by one) and continuously (online) throughout the day, as
and when the instructions are received and finally accepted by the system .
a. Batch b. RTGS c. SFMS d. None of these
2. The minimum settlement cycle under RTGS in India is presently ____ hourly and the transaction
amount is minimum Rs._____ .
a. 2, Rs.2 lac b. 2, Rs.1 lac c. instant, Rs.1 lac d. None of these
3. For being eligible to declare dividend, a bank should have minimum CAR of ________% and NPA
less than _____
a. 9%, 9% b. 9%, 5% c. 9%, 7% d. None of these
4. In the Union Budget for 2008-09, the Govt. proposes to fix the income ceiling for DRI loan
eligibility at:
a. Rs.12000 for rural areas and Rs.15000 for urban areas
b . Rs.15000 for rural areas and Rs.20000 for urban areas
c. Rs.18000 for rural areas and Rs.20000 for urban areas
d. Rs.18000 for rural areas and Rs.24000 for urban areas
5. The maximum dividend the banks can declare is restricted to 40%.
a. True b. False
6. In the Union Budget for 2008-09, the Govt. proposes to enhance the exemption threshold limit for
service tax purpose from Rs. __ lac to Rs.___ lac:
a. Rs.5 lac, Rs.8 lac b. Rs.6 lac, Rs.8 lac c. Rs.7 lac, Rs.10 lac d. Rs.8 lac,
Rs.10 lac
7. Indian banks having branches abroad (overseas presence) and foreign banks in India have to adopt
Basel-II norms w.e.f,_______:
a. 31 March 2008 b. 31-march 2009 c. 31-March 2010 d. Left to the
bank
8. Banks can now undertake Pension Funds Management through subsidiaries set up for the
purpose if they satisfy the eligibility criteria prescribed by the _________:
a. SEBI b. RBI c. IRDA d. PFRDA
9. In the Union Budget for 2008-09, the Govt. proposes to enhance the personal income tax threshold
limit. Which of the following does not match:
a. up to Rs.1.50 lac – Nil b. above Rs.1.50 lac to 3 lac – 10%
c. above Rs.3 lac to Rs.5 lac – 25% d. above Rs.5 lac – 30%
10. Floor limit of SLR is________.
a.15% b.20% c.25% d. Nil
11. Restructuring a loan pending in BIFR & with the permission of BIFR can be considered in case
minimum _______of the number of creditors agree for the same.
a. 70% b. 60% c. 85% d. 90% e. 100 %
12. As per RBI guidelines issued on sale of NPA, the sale price should not generally be lower than
______ of the estimated cash flows associated with the realisable value of the available securities
(net of the cost of realisation). Same principle should be used in compromise settlements.
a. Distress sale value b. Market price c. Net Present Value d. Book value
13. As per the decision of Supreme Court in the matter of M/s Transcore Vs. Union of India & Others
as regards SARFAESI actionand DRT proceedings, which is correct________?
a. It can be proceeded with, without withdrawal of the DRT application. .
b. The remedies under SARFAESI Act and DRT Act are not complimentary to each other and can
NQT. be taken up simultaneously
c. Bank has to seek prior approval from DRT d. Bank has to withdraw case from DRT
14. In case of receipt of Counterfeit currency Note from a customer the action of the bank should
be____?
a. To tear the Note in small pieces
b. To impound the Note & issue receipt to the customer duly signed by Manager, Cashier & customer
c. To impound the Note & issue receipt to the customer duly signed by Cashier & customer only
d. To hand over the customer to the police. e. None of the above.
15. In case of advances to Service Sector the method of lending will be________?
a. Turnover method b. MPBF c. Cash Budget System
d. Loan delivery system e. None of the above.
16. No dues certificate is waived for small / marginal farmers with a loan up to __________.
a. Rs. 10000 b. Rs. 25000 c. Rs. 50000 d. cannot be waived
22
17. Which one of the following best represents the term "Exchangeable Bonds"?
a. A straight bond with an embedded option to exchange the bond for another bond of the same
company at predetermined Price.
b. A straight bond with an embedded option. to exchange the bond for another bond of the subsidiary
company of the issuer company, at predetermined Price.
c. A straight bond with an embedded option to exchange the bond for stock of the company at pre-
determined prices.
d. A straight bond with an embedded option to exchange the bond for the stock of some other company
(Usually subsidiary) other than the issuer company.
e. None of the above is true.
18. The cost of project under PMRY is :
a. Rs.5 lac for business and service and Rs.5 lac for industry.
b. Rs.5 lac for business and service and Rs.2 lac for industry.
c. Rs.2 lac for business and service and Rs.5 lac for industry.
d. Rs.2 lac for business and service and Rs.2 lac for industry.
19. Which one of the following is irrelevant in economic planning in a market oriented economy?
a. Indicative Planning b. Development of Infrastructure
c. Economic policy by a Government d. Regulations and Controls e. None of
the above.
20. Combining of two or more accounts for recovery of bank loan is called :
a. lien b. set off c. appropriation d. pledge
21. In terms of policy guidelines of RBI for sale purchase of NPA, NPAs purchased should
be held by the purchasing bank in its books at least for a period of__ months before it is
re-sold to some other bank.
22. In the Union Budget for 2008-09, the Govt. has fixed the agriculture advances target for 2008-09
at:__________
a. Rs.280000 cr b. Rs.240000 cr c.Rs.225000 cr d. Rs.175000 cr
23. Maximum ceiling limit of CRR is_________:
a. 20% b. 40% c. 25% d. No maximum now
24. What are the latest RBI instructions to Banks for loan against KVP/IVP etc. ?
a. Loan should be given immediately
b. Loan for reinvestment in KVP/IVP should not be given c. No loan should be given
d. Only loan to Sr Citizens be given. e. None of the above.
25. The size of rural infrastructure development fund (RIDF) for 2008-09, as per Union Budget 2008-
09 is kept at:_______
a. Rs.15000 cr b.Rs.14000 cr c.Rs.12000 cr d. Rs.10000 cr
26. Disaster to computer resources occur because of:
a. Natural Calamities b. Accidents like fire and chemical reaction
c. Deliberate action by disgruntled operators by deleting the data and Introducing the virus.
d. Frequently forgetting the pass-word. e. (a) (b) & (c) above
27. If irrevocable power of attorney is given for 1 year to a person to operate the account and is
withdrawn after 4-5 months, the bank should ____:
a. Bank should allow operations by agent as power of attorney is irrevocable.
b. Bank should allow operations by agent as power once given cannot be withdrawn.
c. Bank should not allow operations by agent as there is dispute.
d. Bank should not allow operations by agent as principal can revoke the authority any time.
28. As per RBI Anti-Money laundering guidelines, the Ordering Bank and Intermediary Bank in
case of Wire Transfers have to preserve the originating information for at least _____years:
a. 10 b. 5 c. 21 d. 12
29. BCTT is charged if drawal from a current account by a partnership firm, is :
a. above Rs.1 lac in a day for a single transaction.
b. above Rs.1 lac in a day for a single transaction or total of all withdrawals
c. above Rs.0.5 lac in a day for a single transaction
d. above Rs.0.5 lac in a day for a single transaction or total of all withdrawals
30. What is the fee payable to a "TRP" (Tax Return Preparer)?
a. Rs. 250/- flat for existing tax payer.
b. 3% for I year, 2% for II year and 1% for third year with minimum Rs. 250 and maximum Rs.1.000.
c. A & B d. Rs 250 flat for all tax payers uniformly
31. Burden of tax on commodity can be shifted totally to consumers if elasticity of demand is_____.
a. Equal to 1 b. Less than one but greater to zero c. Equal to Zero
d. Greater than 1 e. None of the above
32. Minimum amount that should be remitted by Central & State Governments through RBI-RFS
package (new remittance facility scheme implemented by RBI):
a. Rs. 1000 b. Rs.500 c. Rs.250 d. Rs.50
23
33. If taxes are levied according to ability to pay theory it leads to________.
a. Proportional taxes b. Progressive taxes c. Regressive taxes
d. Equal amount of tax on all the persons e. None of the above.
34. Which one of the following is not included in a capital budget?
a. Expenditure on asset formation b. Interest payments
c. Money collected from public borrowings d. Small savings collection by the Govt. e. All the above.
35. Interest on EEFC can be given to:
a. All EEFC accounts b. Only to Exporter's EEFC accounts
c. Only up to USD 1 million d. B & C
36. A forged bank draft has been paid. Which one of the following banks, will lodge the complain with
the police?
a. Clearing House, b. Collecting Bank, c. Paying Bank
d. Issuing Bank e. Bank running the clearing house.
37. Under PNB Tax Saver scheme, what is the minimum and maximum amount:
a. Rs. 100 and Rs. 1 Lac b. Rs.1000 and Rs. 1 Lac c. Rs. 1000 and Rs. 5.00 Lac
d. Rs. 500 and Rs. 70000 e. None of these.
38. As per new ECB policy, maximum ECB that can be raised for domestic use is ______:
a. USD 20 million b. USD 500 million c. USD 10 million d. USD 250
million
39. In. the Total freedom salary account scheme of our bank what is the minimum number of
employees from one organization:
a. 10 b. 75% of the total number of employees of the organization.
c. (1) or (2) whichever is less d. (1) or (2) whichever is more e. None of these.
40. In Bank's balance sheet, provision on standard assets is to be kept under:-
a. General Reserves b. Specific Reserves c. Other Liabilities and Provisions,
d. Provision on standard assets e. None of the above.
ANSWERS
1 B 2 B 3 C 4 D 5 B 6 D 7 A
8 D 9 C 10 D 11 D 12 C 13 A 14 C
15 C 16 C 17 D 18 C 19 D 20 B 21 B
22 A 23 A 24 B 25 B 26 E 27 D 28 A
29 B 30 C 31 C 32 A 33 B 34 B 35 D
36 C 37 A 38 A 39 A 40 C
24
1. For redressal of grievance on account of credit card, a customer is given ____ day to prefer a
complaint
a. 15 b. 30 c. 60 d. None of these
2. TDS is applicable on______:
a. FCNR b. NRE SB c. NRE TD d. RFC
3. If a customer is using the ATM of the bank, that has issued the ATM Card, what is the maximum
amount of charges that can be recovered for the transaction, by the bank:
a. No charges are recoverable b. Rs.20 per transaction
c. Rs.10 per transaction d. Rs.2 per transaction
4. Before being classified under doubtful category, an NPA remains substandard for:
a. 90 days b. 12 months c. 24 months d. uncertain period
5. Complaint can be made by customer to Ombudsman for credit card problem if customer does not get
satisfactory response from the bank within _____ .
a. 15 b. 30 c. 60 d. None of these
6. In X and Y’s either or survivor FD account, a request for substitution of the names by names A and
B is received by the bank:
a. possible with consent of X and Y b. possible with consent of A and B
c. possible with consent of X, Y, A and B d. this cannot be done
7. Which of the following risk is not a risk associated with outsourcing .
a. strategic risk b. compliance risk c. reputational risk d.
credit risk
8. For a loan NSCs are pledged / assigned / hypothecated :
a. pledged b. assigned c. hypothecated d. kept under lien
9. Under door step banking which type of services can be rendered by banks for individual customers.
a. Pick up of cash b. Pick up of instruments c. Delivery of demand drafts d. all these.
10.Short term crop loan becomes NPA, if remains unpaid (after due date) for two/one/three crop
seasons :
a. Two crop seasons fixed by the bank b.One crop season fixed by the Govt
c. 2 crop seasons fixed by the State Govt. d. Two crop seasons fixed by SLBC
11. Door step banking services scheme is required to be reviewed by banks on ____ basis.
a. annual basis b. half-yearly basis in the first year c. both d. None of these
12. Under PMRY- eligible subsidy to SHG per member Rs_____with max Rs____?
a. 12500-125000 b. 15000-15000. c.15000-100000 d.15000-125000 e. None of the above.
13. No bank will recover any charges for use of ATMs by their own customers or customers of other
banks wef:
a. Dec 31, 2007 b. Jan 31, 2008 c. Mar 31, 2008 d. April 01, 2009
14. If security of a secured loan is eroded up to __ %, the loan is classified as doubtful NPA :
a.10% or more b. 30% or more c.50% or more d. 100% or more
15. As per the Accounting Standard (AS-15) norms advances up to element of Rs____ crores are to be,
classified as Retail Advances.
a. 1 b. 2 c. 3 d. 5 e. 10
16. A/C opened on 10.12.07. Cheque Book issued on 20.12.07. Two cheques are presented for payment
on 27.12.07, which are dated 01.12.07 and 15.12.07. The CTO says that both the cheques can not be
paid as one is dated prior to opening of a/c and other is dated prior to issue of Ch. Book.
a. Only 2nd cheque can be paid
b. It is discretion of the bank to pay or not to pay c. Matter be referred to RMO
d. Both can be paid if otherwise in order e. Both should be returned
17. In the Union Budget for 2008-09, the Govt. has proposed commodity transactions tax at the
rate of:
a. 1.0% b. 0.55% c.0.25% d. 0.17%
18. If an Option can be availed / used any time during the specified / fixed time, is called______?
a. Call option b. Put option c. European Option d. American option e. Open
option
19. If a customer is using the ATM of the bank, other than that has issued the ATM Card, what is the
maximum amount of charges for a balance enquiry that can be recovered for the transaction, by the
ATM holder bank:
a. No charges are recoverable b. Rs.20 per transaction
c. Rs.10 per transaction d. Rs.2 per transaction
20. A person who has right to buy or sell but no obligation to buy or sell is called_____?
a. Option buyer b. Option seller c. Put buyer d. Put seller e. None of
the above.
21. For deciding whether a transaction should be taken for the same day or not, the cut-off time for e-
payments under EASIEST is:
a. 3 p.m. b . 5 p.m. c. 8 p.m. d. 10 p.m.
25
22 Provision for a standard housing loan account of Rs.12 lac is:
a. 2.0% b. 1.0% c.0.4% d. 0.25%
23. The aggregate exposure of a bank to the capital markets in all forms (FB/NFB) should not exceed
_____of its net worth as on March 31 of the previous year.
a. 20% b. 30% c. 40% d. 50% e. None of the above
24. For the financial year 2008-09, all fresh sanctions or renewals in respect of unrated claims on
corporates in excess of Rs 50 crores will attract a risk weight of______.
25. As per latest guidelines Service Area Approach is applicable in respect of______?
a. Small loans below 25000/- b. PMRY cases c. SSI advances
d. Only Govt. Sponsored cases e. All the above.
26. RBI monitoring through DSB Returns is, ____
a. QMS b. Risk Based Audit c. On-site Surveillance Audit
d. Off-site Surveillance Audit e. None of the above.

27. For Gold card holder, there is a provision for sanction of standby limits @ of_______of the
assessed limits additionally, the maximum period of the Stand By limits can be 180 days.
a. 5% b.10 % c. 20%
d.No prescribed percentage, it is sanctioned as per requirement on case to case basis. e. None of the
above.
28. Under SARFAESI appeal against the decision of DRT can be made to DRAT only if ____% of
loan amt is deposited, which can be reduced to________% by the DRAT.
a. 75-50 b. 75-25 c. 75-0 d. 50-25 e. 50-0
29. A fraud of Rs 2 crores has taken place. To whom reporting has to be made in case no
involvement of staff is suspected?
a. CBI, anti corruption wing, b. CBI, economic offence wing,
c. RBI, economic offence wing, d. Local Police, anti corruption wing e. None of
the above.
30. The new head of International Monetary Fund (IMF) is________.
a. Dominique Strauss Kahn b.Rodrigo de Rato c. Horst Koehler
d. Michel Camdessus e. None of the above.
31. In case of civil courts, upto how much amount can be filed with Lok Adalats?
a. 5 lacs b. 10 lacs c. 20 lacs d. 25 lacs e. None of the above.
32. The eligible loan guarantee limit for Micro & Small Enterprises under. CGTMSE is now
raised to Rs______.
a. 25 lacs b. 50 lacs, c. 75 lacs d. 100 lacs e. None of the above.
33.On Sub-standard assets, provision @ of ____ % is required to be made on unsecured portion.
34. Presently banks can raise funds overseas upto _____of their net owned funds.
35. UCPDC 600 stipulates that if there is no indication in the credit about the insurance coverage
required, the amount of insurance coverage must be at least_______:
a. 110% of CIF /CIP value of goods b. 100% of GIF/ CIP value of goods
c. 200% of CIF I CIP value of goods d. 50% of the CIF or CIP value of goods
36. Which one of the following is correct with regard to planning commission for estimating the
number of persons below poverty line in India?
i) Per capital Income ii) Calory intake in rural and urban areas,
iii) Family Expenditure, iv) Per capital consumption
a. Only (i), (ii) and (iii) are correct b. Only (ii) and (iii) are correct
c. Only (i) and (iv) are correct d. Only (i), (iii) and (iv) are correct e. All are
correct
37. According to FEDAI guidelines, purchase contracts shall be cancelled at the bank's ______on the
date of cancellation of the forward contract.
a. T.T, selling Rate b. Bill selling Rate c. T,T. purchase Rate d. Bill purchase Rate.
38. Bank is In Overbought position and the currency is depreciating. Bank will_______?
a. Earn profits b. Suffer loss c. No effect d. Hedge risk e. None of
the above.
39. Which is the new item added to the "Force Majeure" in UCP 600?
a. Floods b. Earthquake c. Tsunami d. Act of Terrorism
40. In NPA a/c if the value of the Security is less than 50% of the value assessed at the time of last
inspection, the same is to be directly transferred to ________category.
a. S. Std. b. D. Fulc. Loss d. Will be written off directly. e. No such provision exists.
26
ANSWERS
1 C 2 D 3 A 4 B 5 B 6 D 7 D
8 B 9 D 10 D 11 C 12 D 13 D 14 C
15 D 16 D 17 D 18 D 19 A 20 A 21 C
22 C 23 C 24 B 25 D 26 D 27 C 28 D
29 B 30 A 31 C 32 B 33 B 34 B 35 A
36 B 37 A 38 B 39 D 40 B
27
1. IFSCI Code has to be printed by banks on_________:
a. Cheque Books b. All their Stationery c. Both d. Neither
2. Which one of the following best explains the term "Hybrid Loans"?
a. A mixture of various loan products some of which are given as cash whereas others are given
as assistance in the form of consultancy, technical know how, marketing plans etc.
b. Loans given to a group of people for different needs but who share a joint responsibility to
repay it e.g. financing to Self Help Groups.
c. Loans given under specific schemes where fixed rate loans are converted to floating rate loans
after a certain period of time.
d. A mixture of loan product which is given in the shape of loan, but later on can be converted
into capital at the option of lender in whole or in parts.
3. Physical possession of a mortgaged security can be taken by the bank in case loan is not repaid under
the provisions of :
a. SARFAESI Act 2002 b. Indian Contract Act c. DRT Act d. all the
above
4. LAFFER curve relates to_________:
a. Tax rate & revenue b. Tax Rate and Indirect tax rate c. Demand and
supply
d. GDP and Money supply e. None of these
5. In UCP 600, the Nominated Bank, the Confirming Bank and the Issuing Bank shall have a
maximum of _______each following the day of presentation to determine if a presentation is
complying the terms and conditions.
a. 5 banking days b. 7 banking days c. 10 banking days d. 15 banking days
6.The compliance department in a bank should be headed minimum by an officer of the rank of ___
a. General Manager b. Dy. General Manager c. Executive Director d.None
7. Financial Intelligence Unit (FIU) is maintained by _______:
a. RBI b. CBI c. Each bank's HO d. Ministry of
Finance
8. Who cannot be a partner in a partnership Firm?
a. Pvt. Ltd. Co b. Firm c. Trust d. HUF e. Minor
9. Legal heirs of a borrower are liable_______.
a. For the entire amount of loan even after expiry of limitation .
b. Only to the limit of the amount inherited by them from the borrower
c. Only if they have signed some security form d. Not liable at all e. None of
the above.
10. Sterilization operations are carried by RBI control _____?
a. Inflation b. Deflation c. Liquidity due to Forex inflow
d. Over heated Stock market e. All the above.
11. The objective of corporate governance is to create an environment to help the operating
management to enhance the stake-holders value .
a. yes b. no
12. Under UCPDC 600, a commercial invoice for an account in excess of the amount permitted by the
credit _______by a nominated bank I conforming bank I issuing bank.
a. May be accepted
b. Provided the bank does not 'honour' or 'negotiate' for an amount in excess of that permitted
by the credit.
c. Both A & B d. May not be accepted
13. Under SGSY scheme, what is the %age of amount financed that should go towards women?
a. 25% b. 30% c.40% d.50% c. None of the above.
14. As per RBI directives the Banks can't give brokerage / Commn. Etc, to a customer for fetching
deposits but can give an inexpensive gift not exceeding Rs._____ .
15. In case the foreign exchange (Foreign currency notes and Traveler cheques) is not used for the
purpose or for any other permissible purposes, the unused portion is to be surrendered within a
maximum period of ______from the date of its purchase.
a. 60 days, b. 90 days, c. 6 months d. 9 months e. None of
the above.
16. Borrowings in Call I Notice money Transactions of Scheduled commercial banks is linked with___
of the bank?
a. Net o/s Loans b . Net o/s Deposits c. Net Owned funds d. Capital fund
e. None
17. Loss assets which are more than 2 years old without any legal action having been initiated shall be
reviewed on H/Y basis by ACB, having o/s of Rs______ Lacs & above.
28
a. 1.00 b. 2.00 c. 5.00 d. 10.00 e. 50.00
18. Under UCPDC 600, a transport document is dated as 1-01-2007. But a stamp on the face of the
document shows 2-1-2007 as date of dispatch. Which date is deemed to be date of shipment?
a. 2-1-2007 b. 1-11-2007 c. Either d. Should call for
clarification
19. Which one of the following is not correct with regard to quoting of PAN number for banking
transactions?
a. Opening of an account with banking company in cash
b. Single time deposit receipt exceeding Rs 50000/- with a bank in cash,
c. On application for issue of DD/MT etc for cash, if amount is Rs 50000 or more.
d. For making deposit under Tax Saver Scheme, irrespective of the amount.
20. Which one of the following is not true about the Participatory Notes (PNs)?
a. It is a financial derivative instrument issued against an underlying security (shares),
b. Through PNs, the holder is allowed to dividend, or capital gains, earned from underlying
security,
c. PNs are used by investors or hedge funds which are not directly allowed to invest in stock
market.
d. Under the arrangement, a SEBI registered FII buys the shares on behalf of the foreign
investors and
issues them PNs in lieu of those shares.
e. Investor, even though investing through PN, has to get itself registered with the stock exchange
through which he is dealing.
21. Our Bank has recently formulated a scheme for financing of Joint liability Group of tenant farmers.
Joint liability Group (JLG) is an informal group consisting of preferably_______ individuals coming
together and engaged in similar type of economic activity.
a. 5 to 10 b. 10 to 20 c. 4 to 10 d. 8 to 12 e. No minimum/maximum
criteria
22. Under the Basic Indicator approach for operational risk banks are required to maintain capital for
operational risk equal to the fixed percentage of _____(denoted as ∝ i.e alpha) of the ____income of
previous three years.
a. 15% of Gross Income b. 15% of average Gross Income
c. 15% of average positive gross Income d. 15% of average net Income
e. 15% of average positive net Income
23. Best practice code guidelines of RBI are based on the recommendations of _____ committee.
a. Narasimham b. Mitra c. Ghosh d. None of these
24. Nature of securities dealt by RBI through LAF / MSS is/are _____?
a. Eligible securities for SLR b. Non-SLR securities c. Long Term Securities
d. Negotiable Securities e. Non transferable Securities
25. A has withdrawn cash amounting to Rs.90000 from his saving account and Rs.55000 from his
overdraft account and got his premature FDRs cancelled for Rs.19000 on a single day. What is the
amount of BCTT deducted from these transactions :
a. Rs.55 b. Rs.145 c.Rs.164 d. Rs.90
26. Accounting standard No.17 which is applicable for banks also, relates to ____ .
a. accounting of intangible assets b. segment reporting
c. disclosure of provisions d. None of these
27. Failure of internal process is categorized under which type of Risk?
a. Internal Risk b. Operational Risk c. Process Risk d. Credit Risk e. Normal
Banking-Risk
28. What is not the function of a Management Accountant.. ?

a. Collection of Data b. Clubbing of data c. Analyzing of data d. Feeding of data
e. None
29. Waivement / Write off of a loan account of the director of the Bank / of the company in which
interest of the close relative of the director of the Bank is involved can be considered with approval of
the______?
a. CMD b. RBI c. Board of directors of the Bank d. ED e. MC
30. In A/Cs with o/s of Rs ______ lacs & above, when write off is considered, it should be backed by
report of Detective Agency/ Investigating agency w.r.t. the traceability of the obligants -ascertaining
the attachable assets.
a. 5.00 b. 10.00 c. 20.00 d. 25.00 e. 50.00
31. The hypothesis of vicious circle of poverty points to inter relation between_________ .
a. Productivity and Income b. Income and Population
c. Inflation and high consumption d. Surplus labor and disguised unemployment
29
32. Compliance of accounting standards in banks is done on the directions given by RBI on the
recommendations of _____ committee .
a. ND Gupta b. Ghosh c. Mitra d. None of these
33. REPO operations by RBI means_______,
a. Increase in Govt Securities in the market b. Decrease in Govt Securities in the market
c. Decrease in cash flow in the market d. No Change e. G. Sec. are not related
with Repo
34. Indifference curve compared to demand analysis is ________.
a. Inferior b. Superior c. Equal d. No fair comparison can be drawn e. None of
the above.
35. If a locker is not operated for __ years in case of medium risk customer and __ year for high risk
customer, it is either to be operated or surrendered by the customer :
a. 3 years & 3 year b. 1 years & 1 year c. 1 years & 3 year d. 3 years & 1 year
36. Maximum project cost in case of agro-clinics and agri-business centres in case of an individual and
joint venture is:
a. Rs.5 lac and Rs.50 lac. b. Rs.10 lac and Rs.40 lac.
c. Rs.10 lac and Rs.20 lac. d. Rs.10 lac and Rs.50 lac.
37. US Dollar is depreciating as compared to world currencies because of________?
a. Current account deficit b. Increasing oil prices c. Political instability
d. IT Growth of India e. None of these
38. In cash budget system, the bank provides finance on the basis of :
a. Deficit b. surplus
c. surplus or deficit whichever is lower d. surplus or deficit whichever is higher
39. A loan is sanctioned by Bank A and Bank B. Bank B is lead bank and its account is irregular for
more than 150 days. Account of Bank-A is conducted as a regular account. Assets classification for
Bank-A will be:
a. Standard Account b. Sub-standard Account
c. Doubtful Account d. Special mention Account
40. No one can earn super profits in stock exchange. This is the basis of______.
a. Efficient market theory b. Keyns theory c. Peter Drucker theory
d. Stock exchange theory e. None of the above.
ANSWERS
1 A 2 C 3 A 4 A 5 A 6 B 7 D
8 D 9 B 10 C 11 A 12 C 13 C 14 A
15 C 16 D 17 C 18 A 19 E 20 E 21 C
22 C 23 B 24 A 25 A 26 B 27 B 28 A
29 B 30 C 31 A 32 A 33 B 34 B 35 D
36 D 37 A 38 A 39 A 40 A
30
31
1. What is the additional rate of interest that is to be charged on adhoc Pre-shipment credit limits
sanctioned to exporters?
a.0.25% b. 0.10% c.0.50% d. 2.00% e.None of the above.
2. In NPA classification an account moves from standard to loss category directly when :
a. There is loss of security to the extent of 10% or more.
b. There is loss of security to the extent of 50% or more.
c. There is loss of security to the extent of 90% or more.
d. Standard account can move to sub-standard or doubtful category only
3. What is the maximum ceiling on Loans to Individual from banking system against share in demat
form?
a. 10 lacs b. 20 lacs c. 50 lacs d.100 lacs e. None of
the above.
4. Subordinated debt can be issued for a minimum maturity period of ____.
a. 25 years. b. 20 years. c. 15 years. d. 10 years.
5. What is the cut-off limit for taking cognizance of the instances of siphoning/diversion of funds by
wilful defaulters?
a. No cut -off limit b. 5 lacs c.10 lacsd. 25 lacs e. 100 lacs
6.A garnishee order is issued on X. The bank has account in the name of X and Y to be operated by
former or survivor :
a. The order will not be applicable b. The order will be applicable
c. The order will be applicable even if account is either or survivor
d. the order will be applicable only for either or survivor OR former or survivor accounts
7. Under section 13(2) of SARFAESI, secured creditor, before taking possession of the charged assets,
should give notice of _______days to the borrower or authorized agent.
a. 7 b. 15 c.30 d. 60 e. None of the above.
8.The nomination form for nomination in case of a locker (and not deposits) is to be signed by :
a. locker holder and nominee b. locker holder only
c. nominee only d. locker holder, nominee and bank
9. For getting finance under PMRY scheme, neither the income of the beneficiary along with the
spouse,nor the income of parents of the beneficiary shall exceed Rs __________.
a. Rs 40000/- b. Rs 60000/- c. Rs 75000/- d. Rs 100000/ e. None of
the above.
10. A deposit of Rs.3 lac can be kept in term deposit for a minimum period of :
a. 7 days b. 14 days c. 45 days d. discretion of the bank
11. Maximum period for filing an application under Consumer Protection Act. from the date of cause
of action is _____ years.
a. 30 days b. 6 months c. 1 year d. 2 years e. None of the above.
12. SGSY scheme is targeted on :
a. BPL families in rural areas. b. Poor families in rural areas
c. BPL families in urban area. d. Economically backward families in rural areas
13. Interest rates are fixed by banks themselves under deregulated regime, at the level of ___ .
a. Board of Directors b. Assets-Liability Committee c. CMD d. None of these
14. Maximum limit of subsidy for SHG in SGSY is restricted to :
a. Rs.1.00 lac. b.Rs.1.25 lac.
c. Rs.1.25 lac subject to Rs.5000 per member. d. Rs.1.25 lac subject to Rs.2500 per member
15. Responsibility of banking supervision rests with _______ .
a. Central Vigilance Commission b. Board for Financial Supervision c. SEBI d. None
of these
16. Subvention of 2% is given in KCC up to Rs.__ lac, if farmer is financed at 7% :
a. 3 lac b. 2 lac
c. 3 lac out of a larger loan above Rs.3 lac d. 2 lac out of a larger loan above Rs.3 lac
17. Committee associated with full convertibility on capital account was headed by _____.
a. YV Reddy b. SS Tarapore c. C Rangarajan d. None of these
18. In term loans and deferred payment guarantee, the difference is in respect of (a) outlay of funds (b)
DPG is contingent (c) both are sanctioned for different purposes (which is correct):
a. a to c all b. a and b only c. b and c only d. a and c only
19. CAMLES rating model is used by RBI to judge ______ of banks.
a. soundness / financial b. managerial & operational efficiency c. all d. None of
these
20. Which one of the following truly represents the term "fiscal deficit"?
a. Total expenditure minus total receipts b. Total expenditure minus revenue receipts
c. Total expenditure minus capital receipts d. Capital expenditure minus capital receipts
e. None of the above
32
21. Foreign banks are rated by RBI on the model similar to CAMLES, which is known as ____ .
a. CAMLS b. CACS c. CAMS d. None of these
22. Free market labor supply curve is_______.
a. Sloping upwards always b. Sloping upwards and then bending towards X- axis
c. Backward bending d. Sloping downward always e. None of
these.
23. Post-shipment for duty draw back is allowed for a maximum period of :
a . 90 days. b. 180 days. c. 360 days. d. no such advance is
available
24. Which one of the following best explains the term "Dividend Stripping"?
a. Purchase of shares before declaration of dividend and sale after declaring dividend in order to take
benefit of dividend.
b. Purchase of shares before declaration of dividend and sale after declaring dividend in order to take
tax free dividend & booking of short term notional loss for setting off against the short term capital
gains.
c. Sale of shares before declaration of dividend and purchase after declaring dividend for booking of
short term notional loss for setting off against the short term capital gains.
d. Sale of shares just before the declaration of dividend to strip the dividend and to earn good values for
the shares.
25. As per SEBI, companies are not permitted to buy back their own shares by way of______.
a. From open market b. By book building c. By sealed tenders
d. By open Buy back offers. e. None of the above.
26. For delayed remittances of Government receipts for below 1 lakh transactions, the delayed
period interest to be charged is _______:
a. Bank rate for 5 calendar days b. Above 5 days delay Bank rate + 2% for full period of
delay
c. Bank rate for the entire period d. A & B
27. Cherry Picking means_______?
a. Loan for cherry picking b. Investment in selected Blue chip Co. Shares
c. Investment in Mutual Fund only d. Purchase of cherry Gardens e. None of the above.
28. For delayed remittances of Government receipts for above Rs.1 lakh transactions, the delayed
period interest to be charged is_____:
a. Bank rate for 5 calendar days b. Bank rate + 2% for full period of delay
c. Bank rate for the entire period d. A & B
29. External Commercial Borrowing over _____ m USD per borrower / per F Y would be permitted to
be parked overseas for use as Foreign currency expenditure.
a. 10 b. 15 c. 20 d. 25 e. 35
30. Maximum loan against NRE/FCNR TD_____:
a. Rs.20 lacs b. Rs 50 lacs c. Rs.30 lacs d. No ceiling now
31. In a growing economy the growth of service sector is increasing. What will be the position if the
economy continues to grow, the curve of the Service sector will _____ ?
a. Remain straight b. Will go up and then come down c. Will continue to go upwards
d. No impact e. None of the above.
32. The interest awarded by Lok Adalat without any settlement I compromise between the
parties ____:
a. Is binding b. Is not sustainable c. Depends on the circumstances d.Depends on the state
law
33. Inequality in income & wealth is shown by_____.

a. Lorenz Curve b. Laffer curve c. Philips curve d. Keyns curve e. None of
these
34. All credits are _______ in UCP 600:
a. Revocable b.
Irrevocable
c. Either Revocable or irrevocable as mentioned in the text of LC d. Clean
35. When Interest rates are increasing in the market, what will be the effect on the value of current
portfolio?
a. Value will increase b. Value will decrease c. No impact on Value
d. Increase/decrease depends upon the nature of portfolio. e. None of the above.
36. As per the latest directives of CBDT, TDS/TCS returns where PAN quoting is less than
_____(Form 24Q) and ______(Forms 26Q & 27EQ) will not be accepted.
a. 70% :90% b. 90%: 70% c. 50%: 50% d. 50%:30% e. None of the above.
37. Philips Curve relates to_______.
33
a. Poverty-Growth b. Poverty-Inflation c. Poverty-Unemployment
d. Unemployment-Inflation e. None of the above
38. With the amendment in section 32(vi) of the Bonus act, now industrial workers drawing salary upto
Rs ______per month are eligible for claiming bonus.
a.3500 b. 6500 c. 7500 d. 10000e. 7000
39. Interest sensitive assets of a bank are more than interest sensitive liabilities. What will happen, in
case of increase in rate of interest?
a. Profit will increase b. Profit will decrease c. No impact on profits,
d. Either (1) or (2) depending upon the nature of portfolio. e. None of the above.
40. Which one of the following risks is not covered by ECGC?
a. Commercial risk b. Political risk c. Transfer risk d. Cargo/Marin Risk e. None of
the above.
34
Test I
Ques 1: Balance sheet comparison of a company for the last two years reveals that the current
ratio of the company has shown improvement & debt equity ratio has also shown some increase
but total of the balance sheet is same. Which is possibly true ?
A: the current assets have increased
B: the current liabilities have declined
C: the long term loans have increased
D: all the above
Answer: (D)
Ques 2: XYZ Ltd informs that their director, having powers to operate the account has become
insane. A 5 months old cheque is presented which is signed by the same director. Cheque is
returned, stating that the signatory of the cheque has become insane:
A: bank is not liable as it has acted in the interest of the company
B: bank has on its record a notice issued by the company about the insanity due to which the
bank has acted in good faith
C: bank has acted negligently as the director has signed the cheque as agent and due to his
insanity the cheque already signed by him should have been honoured
D: bank has acted negligently and it has ignored the notice received from the company regarding
insanity
Answer: (C)
Ques 3: The loan documents for a CC limit have been signed by first partner on Dec 12 at
Bhopal and by 2nd partner at Kolkata on Dec 25. When bank decided to proceed in a court,
party pleaded that the documents are signed at two places at different times:
A: the documents signed at different places are not considered executed validly due to which the
loan cannot be recovered
B: the documents signed on different dates are not valid.
C: the documents signed on a holiday are not valid
D: documents have been validly executed and bank can proceeds against the party in a court of
law .
Answer: (D)
Ques 4: For a cash credit limit of Rs. 12 lac against the stocks in trade with 25% margin, what
should be value of stocks that the firm should have with them, if they want to avail the sanctioned
limit fully when the firm also has creditors to the extent of Rs. 6
A: Rs.18 lac
B: Rs. 20 lac
C: Rs.22 lac
D: Rs.24 lac
Answer: (C)
Ques 5: Model Bank has sanctioned a demand loan of Rs.5 lac to M/s Sohan Lal & Company
Private Limited on the strength of negative lien on its immovable properties. Under which of the
following provisions of law, the particulars of this charge are to be registered
A: Section 125 of Companies Act
B: Section 293 (d) of Companies Act
C: Section 4 of Indian Registration Act
D: No charge particulars are required to be filed or registered
Answer: (D)
Ques 6: Bank granted an overdraft to Mr. Ravi on the basis of demand promissory note on July
12, 2004. Which among the following is the last day for the bank to file a case in a court of law to
recover its money, in case Ravi is not able to pay the dues?
A: July 12, 2007
B: Day next to July 12, if the court is closed on July 12, 2007
C: July 11, 2007
D: a and b above
Answer: (D)
Ques 7: A company had raised a loan from bank for fixed assets which has been repaid. Bank
certifies that the loan for which the charge was registered has been repaid and the bank does not
hold any charge against the securities. Such a certificate is called:
A: Certificate of Registration of Charge
35
B: Certificate of Repayment of the loan
C: Certificate of release of the charge
D: Certificate of satisfaction of charge
Answer: (D)
Ques 8: A loan is secured by fixed assets of a firm but due to defect caused during the warranty
period, these defective assets are proposed to be replaced due to which there will be substitution
of security. Such substitution of security is called:
A: Subrogation
B: Transfer
C: Novation
D: Assignment
Answer: (C)
Ques 9: An SME unit was sanctioned CC limits against the actual level of stock (normally
around 30% of the annual sale). The annual sales are Rs.100 lac. What should be the value of
insurance policy if the limit is Rs.22.50 lac by maintaining 25% margin on stocks
A: Rs.22.50 lac i.e. the amount of sanctioned limit
B: Rs.22.50 lac + 10% to be on the safe side
C: Rs.30 lac i.e. the value of the stocks
D: Rs.30 lac + 10% of the value
Answer: (C)
Ques 10: Bank granted CC limit of Rs.10 lac to M/s Kala Traders, a firm. The a/c has a debit
balance of Rs.9.50 lac. Notice is received about the insolvency of one of the partners. Which steps
should be initiated by the bank to safeguard its interest?
A: account should be recalled and party be asked to adjust the account
B: operations in the account to be stopped and notice of demand to be issued on the remaining
partners
C: notice about the outstanding dues to be sent to the official assignee in whom the estate of the
insolvent partner has been vested.
D: b and c above
Answer: (D)
Ques 11: There is a current a/c of Lord Shanker Trust, a charitable trust. The branch is located
in the premises of the said trust. A cheque of Rs.50000 is received through clearing in favour of
M/s Shiva Wines, a wine shop located opposite the branch:
A: the cheque will be paid if otherwise in order
B: the cheque would be returned since the payment appears to be in breach of trust and will not
be considered a payment in due course
C: while deciding whether to pay or not, bank must refer to the trust deed to examine trust
objectives
D: b and c
Answer: (D)
Ques 12: Mr. Satish Kaushik, with a public sector bank committed certain irregularities while
discharging his duties as Manager at a rural branch. Which among the following will not be
considered a punishment, if the bank proceeds with disciplinary action:
A: warning and suspension
B: Warning
C: Suspension
D: stopping of increment without cumulative impact
Answer: (A)
Ques 13: M/s Sonali Exporters have exported goods worth Rs.30 lac to UK and shipped the same
on January 19, 2007 under LC. What is the maximum period they can take for presentation of
documents to the bank for negotiation purpose?
A: 7 banking days
B: 14 banking days
C: 21 banking days or 21 days of date of bill of lading whichever is later
D: 21 days from date of shipment i.e. date of bill of lading
Answer: (D)
Ques 14: Export declaration form used for other than by post are called:
A: PP forms
36
B: PR forms
C: GR forms
D: RR forms
Answer: (C)
Ques 15: M/s United Exports Ltd obtained an order for export of hand tools for US $ 30000. It
has been stated in the credit that in case of need, the exporter can transfer the letter of credit in
favour of any other party. Such a letter of credit can be categorise
A: back to back credit
B: transferable letter of credit
C: green clause letter of credit
D: red clause letter of credit
Answer: (B)
Ques 16: The term `cash loss’ means:

A: The losses paid in cash
B: The losses computed without providing for depreciation
C: losses arisen because of cash misplaced
D: a and b above
Answer: (B)
Ques 17: A proposal for sanction of a TL of Rs. 8 lac is received by the bank and party proposes
to repay the loan within 4 years. It is found that the DSCR is 1.5:1 indicating that the party may
find it difficult to make repayment. What remedies are possible?
A: the proposal should be turned down as that would result in increase in sub-standard assets at
the branch at a later stage
B: the lower amount of term loan may be considered to improve the debt equity ratio
C: the firm may be asked to bring interest free funds so as to improve the debt equity ratio
D: b and c
Answer: (D)
Ques 18: Mr. Tony Barganja endorsee of a cheque comes to Model Bank for payment of
Rs.10000 but the cheque is dishonoured wrongfully. To whom, the bank is liable for this
dishonour?
A: the payee of the cheque
B: the endorsee of the cheque
C: all the endorsees of the cheque
D: the drawer of the cheque
Answer: (D)
Ques 19: Bank receives a bearer cheque of Rs.2000 for payment across the counter. On the lower
left corner of the cheque the words `payee’s account only’ are written. While dealing with the
cheque, the bank will take which of the following steps?
A: the cheque will be returned unpaid as the drawer’s mandate is not clear
B: the payee will be advised to deposit the cheque with their bank as such a cheque can be
collected by a bank only
C: the payee will be made the payment as the cheque is not a crossed cheque
D: the payment will be made as the amount is very small
Answer: (A)
Ques 20: For which among the following circumstances, the payee of the instrument gets a title
which does not carry any defect?
A: when instrument has been obtained by any unlawful means or objective
B: when the instrument has been obtained by fraud
C: when the instrument is issued under force or duress
D: none of the above
Answer: (D)
Ques 21: Which among the following will be considered a small farmer under weaker section of
the priority sector lending:
A: a person with no land holding of his own but dependent on farm labour
B: a person owning 3.25 acres land
C: a person owning up to 5 acres land which is un-irrigated or irrigated
D: a person owing up to 5 acres land which is irrigated
Answer: (C)
37
Ques 22: An exporter had sent a bill for collection through International Bank Ltd to UK.
Importer has paid the bill and deposited the proceeds Bank’s account with a London bank. What
rate will be applied by the Bank while crediting the export proceeds?
A: TT buying rate
B: Bills buying rate
C: Spot buying rate
D: Forward buying rate
Answer: (A)
Ques 23: Which among the following is correct in terms of the definition of agriculture labourer:
A: 25% of his income is from agriculture operations
B: his land holding is up to 2.5 acre
C: atleast 50% of his income is from agriculture operations and he has no land holding
D: atleast 51% of his income is from agriculture and he has no land holding
Answer: (C)
Ques 24: On the basis of powers drawn mainly in which of the following Acts, RBI regulates and
controls the banks in India ?
A: Banking Regulation Act and RBI Act
B: RBI Act and Companies Act
C: Banking Regulation Act and Companies Act
D: Banking Regulation Act, RBI Act and Negotiable Instruments Act
Answer: (A)
Ques 25: Which of the following committees, had recommended for computerization in banks
A: Shere Committee
B: Rangarajan Committee
C: Khan Committee
D: Narasimiham Committee
Answer: (B)
38
Test II
Ques 1: X and his wife Y maintain èither or survivor’ SB a/c. A, son of X from his previous wife
informs that X has expired. He requests that the bank should deal with the a/c on a joint basis. A
cheque signed by Y is presented. How would you deal with the cheq
A: Since notice of death of one of the account holders has been received, the operations in the
account will be stopped.
B: Since there appears to be dispute amongst the legal heirs of Mr. X, they should be told to
bring a court order and till then operations should be stopped.
C: Account being èither or survivor’, the payment of the cheque should be made as the survivor
has full authority to operate the account
D: Payment of the balance should be made to all the legal heirs.
Answer: (C)
Ques 2: An order cheque is issued in favour of A and it is endorsed in favour of B which is lost
and found by C who takes payment from the bank with forged endorsement.
A: Bank shall be discharged from its liability as payment is made in due course
B: Bank is liable as it does not confer title on C.
C: Bank is liable for half the amount
D: B is liable as cheque has been lost when it was in his possession
Answer: (A)
Ques 3: Universal Bank maintains a current a/c of ABC Ltd and receives a request from the
company for return of all the cheques issued by them and paid by the bank from their account
during the last 6 months. What action the bank would take?
A: Bank may return the instruments if the company is a very reputed client so as the maintain
relationship.
B: Bank may return the instruments as it is provided under the provisions of Banking Regulation
Act
C: Bank should refuse the request since the passed cheques are the property of the bank and
bank may need these instruments for various purposes.
D: Bank may advise them to obtain photo copy of the instruments.
Answer: (B)
Ques 4: Harish and Mahinder are joint trustees and Harish is authorised to operate the account.
He issues a cheque but Mahinder gives a stop payment notice. The bank in the case:
A: Should not obey Mahinder as he is not having the powers to operate
B: Obey instructions of Mahinder as he is one of the trustees
C: Should ask Harish. As to why the payment not be stopped.
D: seek court direction because of the dispute
Answer: (B)
Ques 5: At the time of incurrence, the legal expenses are to be debited by banks to which of the
following accounts:
A: profit and loss account
B: borrower’s account
C: suspense account
D: bad debt account
Answer: (A)
Ques 6: Under which section of NI Act liability of drawee bank in case of wrongful dishonour of
cheque is described :
A: 85
B: 131
C: 30
D: 31
Answer: (D)
Ques 7: Stamp duty payable on a promissory note is as per:

A: Indian Stamps Act
B: RBI directives
C: Negotiable Instruments Act
D: State Stamp Acts
Answer: (A)
39
Ques 8: You get a letter from a Director of a company having powers to operate the account,
delegating his powers to operate the account to General Manager. Bank should:
A: Allow operations
B: Not allow operations
C: Not accept instruction
D: bank can allow operations if other directors of the company also give such authorization
Answer: (C)
Ques 9: A saving bank account is treated as a dormant account if there is no operation in it for
the last...years:
A: One
B: Two
C: Three
D: 6 months
Answer: (A)
Ques 10: A nomination can be accepted in favour of a:

A: A firm
B: A company
C: A minor
D: An HUF
Answer: (C)
Ques 11: Upon death of the depositor, the legal heirs have been paid the amount of claim.
Subsequently, an attachment order is received in the name of the deceased depositor:
A: order not applicable as no such account exists
B: order applicable on legal heirs as money has been transferred from deceased’s account
C: order applicable if served on legal heirs and the deceased
D: order will be applicable if legal heir agree for that
Answer: (C)
Ques 12: Under what circumstances a depositor gets insurance cover of DICGC:
A: in case of his death before maturity
B: in case of take over of the bank by RBI
C: in case of liquidation of the bank
D: in case of merger of a bank with another bank
Answer: (C)
Ques 13: Mumbai branch of a Bank sanctions CC limit to a public limited company. The
collateral security is equitable mortgage of the IP of the director of a company in Ahmedabad.
Where should the company get the charge registered for the mortgage
A: with Registrar of Assurances in Ahmedabad
B: with Registrar of Companies in Ahmedabad
C: with Registrar of Companies in Mumbai
D: No charge is required to be registered.
Answer: (D)
Ques 14: Which of the following purposes is served by the process of repo:
A: injecting of liquidity
B: absorption of liquidity
C: No change in liquidity conditions
D: money supply expansion
Answer: (B)
Ques 15: You receive a garnishee order on a firm’s account. A partner of the firm is also
maintaining his individual saving bank account which is showing credit balance:
A: The order will be applicable on saving fund account.
B: The order will not be applicable on saving fund account as it does not fulfill the criteria of
same name same capacity
C: It will be applicable through specific order of court.
D: order will be applicable in case the depositor consents
Answer: (A)
Ques 16: Letter of Administration is issued in case of

A: Where no will has been made by the deceased.
40
B: Executor is not willing to act as per the will
C: There is no will but there are claims on the estate of the deceased
D: All of these.
Answer: (D)
Ques 17: Under the nomination rules provided under the Banking Regulation Act, for which of
the following accounts the nomination cannot be accepted:
A: a joint former or survivor deposit account
B: a joint locker account
C: a joint either or survivor deposit account
D: a joint safe deposit of articles account
Answer: (D)
Ques 18: Who will sign documents on behalf of the company while raising a loan:
A: Managing Director
B: Executive director
C: Authorised official whose name is mentioned in the resolution
D: at least 2 directors where loan is Rs.10 cr and above
Answer: (C)
Ques 19: The penalty imposed by RBI on a commercial bank is required to be disclosed by the
bank under:
A: the notes on accounts in its balance sheet
B: auditor’s report annexed to the balance sheet
C: director’s report being part of the balance sheet
D: all the above
Answer: (A)
Ques 20: Corporate Bank sanctioned an overdraft limit of Rs.5 lac to M/s Rana Poly Limited,
against the security of their term deposit of Rs.7 lac. Under which of the following and in how
many days, the particulars of charge can be filed by the company with RoC?
A: Section 126, within 15 days
B: Section 126, within 30 days
C: Section 125 within 30 days
Answer: (D)
Ques 21: Service Area Approach restrictions of RBI are applicable in respect of which kind of
borrowers in banks:
A: tractor advances
B: agricultural advances
C: govt. sponsored scheme advances
D: a to c all
Answer: (C)
Ques 22: Under electronic funds transfer system, what is the maximum amount for which a
single transaction can be carried?
A: Rs.50 lac
B: Rs.100 lac
C: Rs.200 lac
D: no ceiling
Answer: (D)
Ques 23: Foreign Exchange Rates in India are determined by:

A: Finance Ministry
B: RBI
C: FEDAI
D: Market Forces of demand/supply
Answer: (D)
Ques 24: It is mandatory to formulate consortium in case one of the following conditions is
fulfilled:
A: The credit facilities from one bank are more than Rs. 100 crores
B: The credit facilities are more than 15% in respect of individual borrower and 40% in respect
of borrowing group with relation to the capital fund of the financing bank
41
C: The credit facilities are more than Rs. 50 crores and the borrower is dealing with more than
one bank
D: All the above
Answer: (B)
Ques 25: In the bills accounts, NPA is an account where:

A: Bill remains unpaid for any period
B: Bill remains overdue or unpaid for more than 90 days wef year ended March 31, 2004
C: Bill remains overdue for more than 180 days
D: bill has been paid after remaining overdue for more than 90 days
Answer: (B)
42
Test III
Ques 1: A cheque has been issued by a firm in favour of bank and is crossed account payee. This is
presented by the bank on the counter of drawee bank for cash payment:
A: the payment can be made through clearing only
B: The drawee bank should make payment
C: The drawee bank should refuse payment
D: cheque has not been drawn properly as the bank can be drawee only and not a payee
Answer: (B)
Ques 2: A customer keeps National Saving Certificates in the name of his minor son in safe-custody
with the bank. Immediately after attaining majority the son approaches the bank with a request that the
certificates be delivered to him as he is major now:
A: Bank will not deliver to him
B: Bank will deliver to him after obtaining proper introduction and discharge.
C: Bank will neither deliver him nor let him have the details
D: bank will deliver to the father who had handed over the certificates to the bank
Answer: (B)
Ques 3: Which of the following is an indirect agricultural advances:

A: loan for purchase of tractor to a farmer
B: loan for purchase of agricultural implements
C: loan granted to a primary credit coop society for on lending
D: loan granted under the scheme for agro clinics and agro business centres
Answer: (C)
Ques 4: State Bank opens a current account with Bank of America in Los Angles for its day to day
business transactions, in US dollars. Which of the following kinds of accounts, it will be known?
A: Vostro Account
B: Nostro Account
C: Loro Account
D: Escrow Account
Answer: (B)
Ques 5: A customer has returned permanently to India after her 8 years’ stay in UK and wants to
retain the repatriability benefits of the money he is bringing with him. Which of the following accounts
can be opened, to suit his needs?
A: EEFC account
B: RFC (D) account
C: RFC account
D: NRO account
Answer: (C)
Ques 6: Bank is approached by a partnership firm for sanction of a TL of Rs.6 lac for purchase of
equipment. The proposal is viable and firm is ready to offer collateral security. But they are unable to
get the firm registered with Registrar of Firms:
A: loan will be sanctioned making it a pre-condition that firm should be registered before
disbursement of the loan
B: loan will be sanctioned and they will be counselled that in their own interest they may get the
firm registered
C: the loan will not be sanctioned unless they give a solid reason for non-registration of the firm
D: the loan will not be sanctioned to an unregistered firm, as that will be risky proposition
Answer: (B)
Ques 7: An exporter requests for a pre-shipment credit under LC in his favour issued by an approved
bank in the foreign country. Which among the following documents will be examined by the bank to
determine his eligibility and quantum of loan amount:
A: Import licence
B: Letter of Credit
C: Bill of lading
D: GR/PP form
Answer: (B)
Ques 8: The restrictions imposed on the borrowing powers of Board of Directors in a company not to
borrow beyond paid up capital and reserves, can be removed by:
43
A: board of directors themselves
B: shareholders through a circular resolution
C: shareholders through a special resolution in an annual general meeting
D: National Company Law Tribunal
Answer: (C)
Ques 9: As per balance sheet of a firm the amount of total liabilities is Rs.4 lac, that of fixed assets
Rs.1.40 lac and non-current and intangible assets Rs.0.40 lac. Which of the following is true on the
basis of above:
A: current liabilities will be Rs.2 lac
B: long term liabilities will be Rs.1 lac
C: net worth will be Rs.1 lac
D: current assets would be Rs.2.20 lac
Answer: (D)
Ques 10: Committee on customer service which submitted its report during Dec. 1991 is known as:
A: Talwar Committee
B: Tarapore Committee
C: Goiporia Committee
D: Tandon Committee
Answer: (C)
Ques 11: Credit International Bank receives an LC opened by a foreign bank in favour of M/s Fine
Hosiery Ltd and advised it to beneficiary. After shipment the exporter presents the bills for negotiation
to the bank but the bank does not entertain their:
A: by advising the letter of credit the advising bank also undertaken the obligation of negotiation
of the bills
B: by advising the letter of credit, the advising bank also steps into the shoes of the issuing bank
due to which it cannot refuse to negotiate.
C: by advising the letter of credit, the advising bank is under obligation to reimburse the
negotiating bank
D: by advising the credit, the advising bank is not under any obligation to negotiate the
documents
Answer: (D)
Ques 12: What is the risk weightage for housing finance loans backed by mortgage for the purpose of
capital adequacy ratio:
A: 20%
B: 50%
C: 75%
D: 100%
Answer: (C) (However Risk weight for loan upto Rs. 30 lac is 50%)
Ques 13: Transferable letter of credits can be transferred:

A: Once
B: Twice
C: Thrice
D: any no. of times
Answer: (A)
Ques 14: Mr. Vikaram raised loan for purchase of flat did not pay the instalments due. Bank filed suit,
the court decided in bank’s favour. On execution of decree, borrower pleaded that he has only one
house for residence purpose, which should not be subject matter of sale:
A: the plea of the borrower is not tenable since the property is mortgaged and it is primary
security for the bank loan
B: the borrower’s plea is justified as the residential property cannot be subject matter of decree
execution if there is only one house
C: if the borrower proves that he has only one house, his request would be accepted by the court
D: it is discretion of the court to allow or disallow his request
Answer: (A)
Ques 15: Bank released a loan for Rs.5 lac to Mr. Sohan, guaranteed by Mr. Bahadur. Limitation in the
a/c expired through an oversight on January 12. Mr. Bahadur agrees to repay a part of the loan, in
writing when he is approached by the bank:
44
A: with the acknowledgement of debt, the limitation has revived in the account and the entire
money can be recovered from the borrower as well as guarantor.
B: the money can be recovered to the extent of the amount mentioned in the acknowledgement
letter both from the borrower and the guarantor
C: the money can be recovered to the full extent from the guarantor due to availability of
limitation against the guarantor
D: the money to the extent of Rs.3 lac only can be recovered from the guarantors who has
acknowledged the debt.
Answer: (C)
Ques 16: The term liquid surplus used in computing working capital denotes:
A: Net working capital
B: Surplus from operations
C: Cash and bank balances
D: surplus of long term uses over long term sources
Answer: (A)
Ques 17: The term `cash loss’ means:

A: The losses paid in cash
B: The losses computed without providing for depreciation
C: losses arisen because of cash misplaced
D: a and b above
Answer: (B)
Ques 18: Loans and advances granted to staff members carry a risk weight of ___ for the purpose of
capital adequacy ratio:
A: 10%
B: 15%
C: 20%
D: 50%
Answer: (C)
Ques 19: Under KYC guidelines, what is the amount up to which the bank drafts or cash orders can be
issued by the banks for cash?
A: Rs.20000
B: 30000
C: 50000
D: 75000
Answer: (C)
Ques 20: A deposits Rs. 50,000 in his a/c. The next day, a letter is received from the public prosecutor
that the money is stolen money and hence operations have to be stopped. Bank should:
A: not stop the operations but obtain factual position from account holder
B: should stop the operations
C: should stop the operations under intimation to the depositor
D: should inform the position to prosecutor
Answer: (A)
Ques 21: WAN stands for:

A: Wide Advantage Network
B: Wide Area Network
C: Wide Actual Numbers
D: Wide Area Nations
Answer: (B)
Ques 22: ALM technique helps in disclosing which of the following:

A: Interest Rate Sensitivity
B: Residual Maturities
C: Immediate Health of the Bank
D: a and b
Answer: (D)
Ques 23: A funds flow statement of a firm shows that the short term sources are greater than short term
uses. It indicates:
A: A Lower Current Ratio
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B: A Higher Current Ratio
C: A High Debt Equity Ratio
D: A Low Debt Equity Ratio
Answer: (A)
Ques 24: Mr. X, an FDR (11% interest) customer, nominates his friend Mr. Y. Due to X’s death, Mr. Y
approaches for payment before maturity. But legal heirs object for pre-mature encashment as there will
be substantial loss of interest due to present lower interest
A: The bank cannot entertain request of the legal heirs u/s 45 ZB of Banking Regulation Act
B: The legal heirs’ request will have to be entertained by the bank under the provision of section
45 ZB of Banking Regulation Act
C: Legal heirs have the right to protect their interest, due to which the bank cannot deny their
request
D: Legal heirs will have to bring succession certificate to restrict the nominee
Answer: (A)
Ques 25: Corporate Bank is approached by a new public limited company promoted by a reputed group
in the town, for CC limits. But you come to know that the promoter had willfully ignored to pay the
loan of an all India financial institution, three years back:
A: the loan cannot be given for new projects of willful loan defaulters
B: the loan cannot be given for new projects of willful loan defaulters for 5 years
C: the willful default is with other institution due to which the bank can sanction the loan on the
merit of the case
D: the loan can be sanctioned with prior approval of RBI and Ministry of Finance only
Answer: (B)
Test IV
Ques 1: The payee of a draft informs the bank that the draft has been lost. He also requests the bank to
stop the payment of the draft. The draft has not been paid so far. In this case:
A: The bank will mark a caution against the fraudulent payment of this draft. It will advise the
payee to contact the purchaser and get a duplicate issued in lieu of original
B: The payment of draft would be stopped with immediate effect
C: The bank will advise the payee that the payment of the draft cannot be stopped
D: None of the above
Answer: (A)
Ques 2: Karta Mr. Ram Avtar of 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?
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 of HUF
Answer: (A)
Ques 3: A muslim minor who has lost his father, has a deposit in his name in your branch. His mother
approaches you to become his guardian. Whom would you consider as guardian:
A: Mother
B: if there is will, the executor of the will
C: Grandfather, if no will is there
D: b and c
Answer: (D)
Ques 4: Ravi, your customer, has deposited certain securities with your branch for collection of
interest on these securities. He has an NPA loan account also and you want to make use of these
securities for adjustment of this loan. Banker’s general lien can be e
A: Securities are received for sale.
B: Securities are for a particular loan
C: Securities are received in ordinary course of business not under any specific contract or
purpose, due to which lien cannot be exercised
D: on these securities, the lien can be exercised
Answer: (C)
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Ques 5: Bank cannot disclose the affairs of account of a customer. What are the circumstance where it
is under obligation to disclose the affairs of customer’s account ?
A: Compulsion Of Law
B: Banking Practice
C: Interest of the Bank
D: a to c
Answer: (D)
Ques 6: For the purpose of KYC policy of RBI, who among the following cannot be considered a
‘Customer’ :
A: a person or entity that maintains an account and/or has a business relationship with the bank;
B: one on whose behalf the account is maintained (i.e. the beneficial owner);
C: beneficiaries of transactions conducted by professional intermediaries, such as Stock Brokers,
Chartered Accountants, Solicitors etc. as permitted under the law,
Answer: (D)
Ques 7: Why it is prohibited under the provisions of Reserve Bank of India Act 1934 Section 31, to
issue promissory notes and bills of exchange made payable to bearer on demand, although cheques can
be made payable on demand to bearer:
A: such instrument will become currency or bank notes and that will confuse the general public
B: circulation of such instrument may become instrumental in increasing the frauds
C: such instruments cannot become legal tender
D: in India only RBI has the powers to issue such promissory note and bill of exchange and these
instrument are currency or bank notes
Answer: (D)
Ques 8: What is the maximum extent of exposure of banks in unsecured advances as per RBI
directives:
A: 10% of the total advances
B: 15% of the net bank credit
C: 20% of the non-food credit
D: at the discretion of banks
Answer: (D)
Ques 9: An 100% export oriented unit is one which:

A: exports 100% of its products
B: exports all its products except the ones permitted by Govt.
C: exports at least 85% of its goods
D: all the above
Answer: (D)
Ques 10: Currency chest with bank branches of various banks remains under the ownership of:
A: Govt. of India
B: Nationalised Bank
C: Public sector Bank
D: RBI
Answer: (D)
Ques 11: Mr. Prasad had obtained a loan Rs. 2 lac for self employment which he could not repay. The
bank filed a suit and it was decided in bank’s favour. Which among the following can be attached in
case of execution of civil decree which bank wants to get enfor
A: his right to future maintenance
B: his salary up to first Rs.1000
C: 2/3rd of his salary above Rs.1000
D: govt. securities in his name
Answer: (D)
Ques 12: An FD is in A and B’s name payable to either or survivor. On maturity date A comes to bank
for payment with original FDR. Legal heirs of B inform that they have filed suit in court. A copy of
plaint is submitted by them:
A: Bank will pay to A because it is payable to either or survivor
B: Bank will wait for court’s decision
C: Bank will pay 1/2 share and the balance will be decided on court decision.
D: bank will pay to the survivor on the basis of an indemnity bond
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Answer: (A)
Ques 13: Your customer Ramesh Chand authorises Dharuv to operate the account and sign cheque. He
will sign a cheque as:
A: An individual
B: Agent of account holder
C: As joint account holder
D: Ramesh Chand
Answer: (A)
Ques 14: A public limited company had raised fixed deposits with 3 year’s maturity but due to
financial problems it could not pay the amount on due date. On a legal action by the fixed deposit
holders, the :
A: Co. can be declared insolvent
B: Co can be to liquidated
C: A lockout would be declared
D: None of the above.
Answer: (B)
Ques 15: Which of the following statements is true:

A: In case the business of the firm has been declared as illegal, the firm will be dissolved
B: In case the firm was formed for a particular venture, on completion, it will be dissolved
C: In case the partnership is at a will, on giving a notice by a partner to rest of the partners for
dissolving the firm, the firm will be dissolved
D: All the above
Answer: (D)
Ques 16: United Bank had granted a loan under its housing finance scheme to Mr. Atul Ghosh, by
mortgaging the house. On repayment of the loan the bank did not release IP. Under which of the
following rights, he can force the bank to release the property?
A: right of appropriation
B: right of set off
C: right of foreclosure
D: right of redemption
Answer: (D)
Ques 17: A cheque crossed specially is presented for payment at the counter of the paying branch by
the bank in whose favour it is crossed:
A: The drawee bank should make the payment because the payment is being made to the bank in
whose favour special crossing has been made
B: The drawee bank should refuse the payment
C: The drawee bank should advise the collecting banker to present his cheque through clearing
house
D: Being a crossed cheque, payment cannot be considered in due course.
Answer: (A)
Ques 18: An SME firm availing working capital limits is having a current ratio of 2.5:1 and a debt
equity ratio of 0.3:1 only. What do these ratios indicate:
A: liquidity position is satisfactory
B: long term solvency is unsatisfactory
C: the firm will not be able to meet its liabilities
D: the financial management needs to be improved for better utilisation of available resources
Answer: (D)
Ques 19: Which of the following endorsements is invalid:

A: Endorsement after maturity of the instrument
B: Partial endorsement
C: Endorsement on a discharged instrument
D: all the above
Answer: (D)
Ques 20: An order cheque is endorsed in blank:

A: It becomes payable to bearer
B: Its further endorsement becomes restricted
C: Its negotiation features has been terminated
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D: it does not need further negotiation
Answer: (A)
Ques 21: Bank receives two cheques in clearing and balance is sufficient to pay only one cheque:
A: important cheque (covering payment of dues such as Govt. dues) should be paid
B: payment should be on first come first served basis
C: both the cheques should be returned
D: cheques with earlier printed number should be paid
Answer: (A)
Ques 22: The assignee of a negotiable instrument is:

A: Holder in due course
B: Endorser
C: Holder
D: a to c
Answer: (C)
Ques 23: Self-Help Group in priority sector is a:

A: loan scheme
B: group prepared by banks for group guarantee
C: affinity group of rural poor coming together for mutual benefits
D: group to help the poor people
Answer: (C)
Ques 24: Your branch receives a cheque of Rs.10000 payable to Mrs. Sham Sunder or order through
the clearing house. It is endorsed by Mrs. Sham Sunder. What is the correct way of endorsing this
cheque to pass the cheque?
A: Mrs. Sham Sunder
B: Sham Sunder
C: Rani w/o Sham Sunder
D: either a or c
Answer: (C)
Ques 25: If the issuing bank states the letter of credit to be available for one or two months or the like,
the date of issuance of the letter of credit by the bank will be deemed to be_______from which such
time is to run, if date to run, is not given:
A: 1st day
B: 2nd day
C: 4th day
D: 5th day
Answer: (A)
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Test V
Ques 1: Dharam Charitable Trust has a current account operated by their two trustees. In road
accidents, both the trustees expire and this fact comes to the notice of the bank. What precautions
should be taken by the bank for future operations in the account?
A: the beneficiaries will have to appoint another trustee and on the basis of their resolution the
next trustee would be allowed to operate the account.
B: the beneficiaries will be allowed to operate the account themselves.
C: the operations in the account will be stopped
D: the beneficiaries will be told to approach a court for appointment of new trustee in case the
trust deed is silent about this
Answer: (D)
Ques 2: Ram is having an FD and nominated Harish. On maturity the deposit is renewed. The
nomination will:
A: Be treated as cancelled
B: Continue to be valid
C: Be taken on fresh basis
D: no nomination is possible on the renewal of the term deposit
Answer: (B)
Ques 3: X has a 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:
A: In joint accounts, it is not possible
B: It is possible as the account is former or survivor
C: Possible with consent of Y
D: It is possible as in joint accounts this can be done
Answer: (B)
Ques 4: A cheque is presented in the account of Mr. X, but meanwhile a garnishee order is received.
On receipt of garnishee order, on account of a customer, what is status of liability of the bank to pay the
cheque ?
A: Stops operations in the account
B: Loses the right of set off.
C: Bank is discharged from the liability to honour the cheque issued by the customer
D: None of the above.
Answer: (C)
Ques 5: Mr. Ashok had obtained a FDR for Rs.50000 for 2 years which have expired 4 months. When
he demanded the payment on Sept 12, 2003 after maturity, the bank could not locate the records. What
is the limitation period in case of this term deposit?
A: there is no limitation period in case of deposits and these can be claimed any time
B: the limitation period is three years from date of expiry of the fixed deposit receipt.
C: the limitation period begins from date of the term deposit and is three years
D: the limitation period runs from date of demand of the money and is three years
Answer: (D)
Ques 6: To work out productivity of your branch you need the data relating to business per employee.
It comprises of:
A: All types of business being done by the bank branches
B: Deposits of the branch
C: Deposits and advances
D: Advances of the branch
Answer: (C)
Ques 7: Under a crop loan, the farmers are generally allowed a time period of ___ months after
harvest of the crop, for marketing of the produce and repay the dues of the bank:
A: 6 months
B: 5 months
C: 4 months
D: 2 months
Answer: (D)
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Ques 8: Mr. Gurdial Singh, had lodged a complaint with the bank in connection with payment of
interest on delayed collection of his cheque. Bank however did not care for the same. What conditions
must be satisfied for lodging a complaint with Bank Ombudsman?
A: a period of one months should have passed from date of his complaint.
B: he should either not have received the reply or he is not satisfied with the reply
C: the period of complaint lodged should be minimum two months
D: a and b both
Answer: (D)
Ques 9: On saving bank account of which of the following institutions, interest can be paid:
A: Societies registered under Societies Registration Act 1860, companies permitted u/s 25 of
Companies Act which are not using limited or private limited word with their name
B: DRDA, DPAP, IRDP, DDA
C: Panchayats and Municipal Corporations
D: (a) and (b) above
Answer: (D)
Ques 10: A firm with three partners, opened a current account with the operational instruction that 1st
two partners will operate the account. The firm received a cheque and the 3rd partner endorsed it in
favour of another firm from whom raw material was purchase
A: Shivani Cables will become holder in due course if it is not known to them that the 3rd
partners has no authority to endorse
B: Shivani Cables will not become holder in due course if they know that only 1st and 2nd
partner have authority to operate the bank account
C: Shivani Cables’s title will remain doubtful in all circumstances
D: a and b
Answer: (D)
Ques 11: Your branch opens an account in the name of joint trustees. You receive an information that
one of them has died. In such circumstances:
A: Bank account will be operated upon by surviving trustees.
B: Bank will not permit operations unless it is specifically mentioned in the trust deed
C: Surviving trustees can operate the account if bank permits.
D: surviving trustee will get all powers to operate the account
Answer: (B)
Ques 12: An SME unit seeks your guidance as to which documents are required to be eligible for
obtaining a pre-shipment credit. Which among the following is not part of such
documents/information:
A: IEC Code allotted by DGFT
B: Their name should not be on the RBI’s exporters caution list
C: They should not be placed in the Specific Approval list of ECGC
Answer: (D)
Ques 13: Which of the following alterations is not a material alteration:

A: Converting order to bearer cheque
B: Cancelling crossing of a cheque
C: Changing payee’s name
D: Crossing an uncrossed cheque
Answer: (D)
Ques 14: In case of accepting articles for safe-custody, the nomination facility is available under which
of the following:
A: Negotiable instruments Act 1881
B: Banking Regulations Act 1949
C: RBI Act 1934
D: Indian Contract Act 1872
Answer: (B)
Ques 15: A and B have a locker as either or survivor and A informs that keys have been lost. Thereafter
B comes for operations:
A: Bank will not allow operations without consent of A
B: Bank will allow operations
C: Bank will allow operations if indemnity is given by B
51
D: Banks will not allow operations to any of them without a court order
Answer: (A)
Ques 16: When a letter of credit is confirmed by a confirming bank, the request for such confirmation
should come from which of the following:
A: negotiating bank
B: Exporter
C: Importer
D: opening bank
Answer: (D)
Ques 17: Master Sachin and Master Sonal aged 13 and 16 respectively, studying in a secondary school,
want to have a joint account with your branch:
A: joint account of minors cannot be permitted. Hence they will not be allowed.
B: joint account can be opened provided they are from the same family
C: the operations in the account can be on a joint basis and not either or survivor
D: b and c both
Answer: (D)
Ques 18: A loan has to be recovered on the basis of a usance bill of exchange or a usance promissory
note. In such case the period of limitation is three years from:
A: Date of disbursement
B: Due date of bill or note
C: Date of default
D: date of refusal to pay
Answer: (B)
Ques 19: Out-of-order in the cash credit account is an account where:

A: Outstanding balance remains continuously in excess of sanctioned limit or drawing power
B: There are no credits continuously for 6 months as on date of balance sheet.
C: Credits are not enough to cover intt. debited during the last 2 months
Answer: (D)
Ques 20: One property has been mortgaged equitably and by some other type of mortgage as well.
Which of the mortgages will have a priority:
A: The mortgage which has been created earlier
B: Both the mortgages will be treated on the same footings
C: Legal mortgage
D: equitable mortgage, if created
Answer: (A)
Ques 21: According to Section 3 of Transfer of Property Act, an actionable claim means:
A: A claim of debt
B: A claim of debt which has not been secured by mortgage of an immovable property
C: A claim to a debt which has not been secured by pledge or hypothecation of a movable
property
D: (b) and (c) above
Answer: (D)
Ques 22: The no. of members in a PMRY self-help group in priority sector is normally :
A: 10-20
B: 15-25
C: 20-30
D: 5-20
Answer: (D)
Ques 23: When more than one banks are allowing credit facilities to one party in coordination with
each other under a formal arrangement, the arrangement is known as:
A: Participation
B: Consortium
C: Syndication
D: multiple banking
Answer: (B)
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Ques 24: A committee was constituted in the year 1993 to review the system of consortium which is
known as:
A: Jilani Committee
B: Vaz Committee
C: Shetty Committee
D: Khanna Committee
Answer: (C)
Ques 25: A director of joint stock company who operated cash credit account with the bank expired
and a cheque signed by him is presented:
A: bank cannot pay
B: bank may pay if other directors consent
C: bank may earmark funds
D: bank can pay as it is signed in a representative capacity
Answer: (D)
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Test VI
Ques 1: Which of the following will not be considered as intangible assets ?

A: preliminary expenses
B: pre-operative expenses
C: debit balance of profit and loss account
Answer: (D)
Ques 2: Prepaid Insurance is shown in the balance sheet of a firm as:

A: fixed assets
B: intangible asset
C: intangible asset
D: Current Asset
Answer: (D)
Ques 3: A firm has current ratio of 1.5:1, fixed assets of Rs.10 lac, non-current assets of Rs.2 lac,
intangible assets of Rs.1 lac. If its current liabilities are Rs.6 lac. What is the amount of total assets ?
A: Rs.20 lac
B: Rs.22 lac
C: Rs.25 lac
D: Rs.28 lac
Answer: (B)
Ques 4: If a company revaluates its assets, the net working capital, current ratio and quick ratio of the
company
A: will improve
B: will remain unaffected
C: will undergo some change
Answer: (B)
Ques 5: In a balance sheet of a firm, the debt equity ratio is 2:1. The amount of long term sources is
Rs.12 lac. What is the amount of tangible net worth of the firm:
A: Rs.12 lac
B: Rs.8 lac
C: Rs.4lac
D: Rs.2lac
Answer: (C)
Ques 6: Which combination of current ratio and debt-equity ratio is generally acceptable to the
bankers:
A: current ratio 1.7:1 and Debt equity ratio 4:1
B: current ratio 1.33 and Debt equity ratio 2:1
C: current ratio 1.17 & debt equity ratio 1.5:1
D: current ratio 1:1 and debt equity ratio 1:1
Answer: (B)
Ques 7: Debt equity ratio of a firm is 2:1 with long term outside liabilities of Rs.20 lac. In the year it
incurs loss of Rs.2 lac. What shall be the tangible networth of the firm after this loss at the end of the
year.
A: Rs.5 lac
B: Rs.6 lac
C: Rs.8 lac
D: Rs.10 lac
Answer: (C)
Ques 8: A proprietorship concern has net profit of Rs.20 lac, depreciation Rs.5 lac and annual interest
payable on long term liabilities Rs.5 lac. Its DSCR is 2. What is the amount of annual instalment of the
long term liabilities ?
A: 15 lac
B: Rs.12 lac
C: Rs.10 lac
D: Rs.8 lac
Answer: (C)
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Ques 9: A firm has the following financial figures from its balance sheet: Capital Rs.12 lac, Reserves
Rs.4 lac, Unsecured loans Rs.5 lac, current assets Rs.16 lac, pre-operative expenses Rs.2 lac. It net
worth would be:
A: Rs. 16 lac
B: Rs.14 lac
C: Rs.12 lac
D: Rs.10 lac
Answer: (B)
Ques 10: A firm is having paid up capital of Rs.2 lac, revaluation reserve of Rs.1 lac, current liabilities
of Rs.1 lac, pre-paid expenses of Rs.0.20 lac and pre-operative expenses of Rs.0.30 lac. What will be
its tangible net worth:
A: Rs.2.50 lac
B: Rs.2.70 lac
C: Rs.3 lac
D: Rs.3.50 lac
Answer: (B)
Ques 11: The amount of instalment of a term loan is fixed at Rs.10000 per month and monthly average
interest on the account is Rs.5000. If the amount of depreciation is Rs.30000 p.a. and profit after tax
Rs.270000. What is the DSCR ?
A: 1.5
B: 1.75
C: 2
D: 2.5
Answer: (C)
Ques 12: In a balance sheet amount of total assets is Rs. 10 lac, current liabilities Rs. 5 lac and capital
and reserves Rs. 2 lac. What is the debt-equity ratio:
A: 1:1
B: 1.5
C: 1.75
D: 2
Answer: (B)
Ques 13: Debt equity ratio is 3:1, the amount of total assets Rs.20 lac, current ratio is 1.5:1 and owned
funds Rs.3 lac. What is amount of current assets:
A: 3 lac
B: 5 lac
C: 12 lac
D: 15 lac
Answer: (C)
Ques 14: 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 ?
A: improvement in debt equity ratio
B: improvement in current ratio
C: deterioration in current ratio and decline in net working capital
D: deterioration in debt service coverage ratio.
Answer: (C)
Ques 15: As per balance sheet of a firm the amount of total liabilities is Rs.4 lac, that of fixed assets
Rs.1.40 lac and non-current and intangible assets Rs.0.40 lac. Which of the following is true on the
basis of above:
A: current liabilities will be Rs.2 lac
B: long term liabilities will be Rs.1 lac
C: net worth will be Rs.1 lac
D: current assets would be Rs.2.20 lac
Answer: (D)
Ques 16: A balance sheet shows long term uses of funds at Rs. 6 lac and long term sources of funds at
Rs. 8 lac. What is the net working capital:
A: Rs.2 lac
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B: Rs.3 lac
C: Rs.5 lac
D: Rs.6 lac
Answer: (A)
Ques 17: A firm sells a part of its land for Rs.50 lac with book value of Rs.20 lac and receives full
payment in cash. Its quick ratio was 1:1 with current liabilities of Rs.100 lac. What is the new quick
ratio ?
A: 1.5:1
B: 1.33
C: 1.2
D: 1.1
Answer: (A)
Ques 18: The balance sheet of a firm has shown total assets of Rs.20 lac. The long term uses are Rs.11
lac and current ratio 1.5:1. What is the amount of current liabilities:
A: Rs.11 lac
B: Rs.9 lac
C: Rs.7 lac
D: Rs.6 lac
Answer: (D)
Ques 19: A firm revalues its land and building from Rs.40 lac to Rs.100 lac. It current ratio before this
revaluation was 1.33:1 with current liabilities of Rs.100 lac. What will be new current ratio ?
A: 1.17
B: 1.25
C: 1.33
D: 1.50
Answer: (C)
Ques 20: Current ratio of a unit is 3:1 and quick ratio 1:1. The level of current assets is Rs.15 lac. What
is the amount of quick assets ?
A: Rs.3 lac
B: Rs.5 lac
C: Rs.7lac
D: Rs.9lac
Answer: (B)
Ques 21: At the time of renewal of working capital limits of a partnership firm, it was observed by the
appraising officer that the quick ratio of the firm has declined substantially but the current ratio has not
changed. Which among the following could be true:
A: the amount of stocks has declined
B: the firm’s stocks as percentage of current assets have increased
C: the firm’s receivables as percentage of current assets have declined
D: b and c above
Answer: (D)
Ques 22: The current ratio of a company was 2:1 and current assets of Rs.20 lac. Stocks worth Rs.5 lac
are damaged and there is no insurance. What is the new current ratio if the total assets are Rs.40 lac.
A: 1.75
B: 1.5
C: 1.33
D: 1.25
Answer: (B)
Ques 23: The fixed assets of a business were Rs.10 lac and capital and reserves of Rs.15 lac, there
being no long term liabilities or non-current or intangible assets. If the amount of total assets is Rs.20
lac, what will be current ratio ?
A: 3:1
B: 2.5:1
C: 2:1
D: 1.5:1
Answer: (C)
Ques 24: Realization of book debts will:
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A: decrease current ratio
B: increase current ratio
C: push ahead current ratio
D: not affect current ratio
Answer: (D)
Ques 25: Working capital turnover ratio is 6 and current ratio 2:1. If current liabilities are Rs.10 lac and
net profit to sales percent 5%, what is the amount of net profits ?
A: Rs.10 lac
B: Rs.8 lac
C: Rs.7 lac
D: Rs.6 lac
Answer: (D)
Test VII
Ques 1: Public sector banks are required to achieve a target of 5% of their advances by March 31,
2004. The target relates to which of the following:
A: export credit
B: education loans to needy students
C: housing finance to public
D: credit to women
Answer: (D)
Ques 2: In SME financing the banks are to ensure minimum credit of __% of their total credit to SME
for units having investment in plant and machinery upto Rs.5 lac:
A: 40%
B: 30%
C: 20%
D: 10%
Answer: (A)
(i) 40 per cent of total advances to small enterprises sector should go to micro (manufacturing)
enterprises having investment in plant and machinery up to Rs 5 lakh and micro (service)
enterprises having investment in equipment up to Rs. 2 lakh;
(ii) 20 per cent of total advances to small enterprises sector should go to micro
(manufacturing) enterprises with investment in plant and machinery above Rs 5 lakh and up to
Rs. 25 lakh, and micro (service) enterprises with investment in equipment above Rs. 2 lakh
and up to Rs. 10 lakh. (Thus, 60 per cent of small enterprises advances should go to the micro
enterprises).
Ques 3: The foreign banks are required to achieve priority sector target of:
A: 12%
B: 20%
C: 32%
D: 40%
Answer: (C)
Ques 4: Priority sector credit to Adjusted net bank credit ratio, for Indian banks should be:
A: 30% of ANBC
B: 35% of ANBC
C: 40% of ANBC
D: 40% of gross bank credit
Answer:
(C)
(40 per cent of Adjusted Net Bank Credit (ANBC) or credit equivalent amount of Off-Balance
Sheet Exposure, whichever is higher).
Ques 5: What is the target for DRI advances in Priority Sector

A: 1% of net bank credit
B: 1% of gross bank credit of previous year
C: 1% of total advances of previous year
D: 1% of incremental credit.
Answer: (C)
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Ques 6: The advances allowed by a bank for setting up industrial estate will be part of the priority
sector in one of the following:
A: indirect agriculture
B: small scale industry
C: infrastructure development
D: indirect finance to priority sector
Answer: (B)
Ques 7: Micro credit as per RBI definition is:

A: credit extension to micro activities
B: credit other than big size loans
C: supply of credit to the poor
D: credit to scavengers
Answer: (C)
Ques 8: The funds deposited by banks under RIDF of NABARD are to be classified under which of
the following:
A: Advances to agriculture
B: Advances to direct agriculture
C: Indirect finance to agriculture
D: Finance to rural development
Answer: (C)
Ques 9: Which of the following is not considered as advance to agriculture under priority sector ?
A: loans to State Electricity Board for erection of high-power transmission line
B: loans to Primary Agr. Service society
C: subscription to bonds of NABARD for agriculture investment purpose
D: loans for bio gas plant
Answer: (A)
Ques 10: Production of oil seeds and pulses is connected with which of the following:
A: green revolution
B: yellow revolution
C: blue revolution
D: white revolution
Answer: (B)
Ques 11: What is the amount of compensation by way of insurance policy in case of KCC to a
borrower:
A: for loss of life in accident Rs.50000
B: for loss of two limbs or two eyes Rs.50000
C: for loss of one limb or one eye Rs.25000
D: a to c
Answer: (D)
Ques 12: Which among the following is considered a small farmer for the purpose of loans under
priority sector:
A: whose minimum 50% income is from agriculture operations
B: whose irrigated land holding is less than 2.5 acres
C: whose unirrigated land holding is less than 5 acres
D: b and c above
Answer: (D)
Ques 13: Agricultural crop seasons can be short term crop season or long term crop season on the basis
of recommendations of which of the following committees:
A: R V Gupta Committee
B: Narasimham Committee
C: V S Vyas Committee
D: Shetty Committee
Answer: (C)
Ques 14: As per recommendations of Vyas Committee, the short term crop season is of the duration of:
A: 3 months
B: 6 months
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C: 12 months
D: up to 12 months
Answer: (D)
Ques 15: The securitised assets representing indirect agricultural loans can be classified as priority
sector under which of the following:
A: agricultural credit
B: direct agriculture credit
C: indirect agricultural credit
D: any of the above
Answer: (C)
Ques 16: Against the normal age criteria of 18-35 years in PMRY, relaxation of 10 years is not
available in which of the following?
A: SC/ST
B: Women
C: Ex-servicemen
D: Mentally handicapped
Answer: (D)
Ques 17: In PMRY a beneficiary is required to reside for three years in the area, for becoming eligible
for the loan. Area in this context, means?
A: command area of the branch
B: service area of the branch
C: town in which the branch is located
D: District
Answer: (D)
Ques 18: What is the amount of project cost for individual in case of PMRY financing?
A: Max Rs.1 lac for industry activity
B: Max Rs.2 lac for business activity
C: Max Rs.1 lac for service activity
D: Max Rs.1 lac for business and Rs.2 lac for other than business
Answer: (D)
Ques 19: What is the extent of subsidy in case of PMRY advances?

A: 15% of the amount of loan maximum Rs.7500
B: 15% of the amount of loan maximum Rs.15000 in select States
C: 15% of the project cost maximum Rs.7500 (and Rs.15000 in select States)
D: 15% of the project cost maximum Rs.15000 (and Rs.7500 in select States)
Answer: (C)
Ques 20: Which of the following is responsible for identification of the activities to be undertaken by
SGSY beneficiaries in a block under this scheme?
A: NABARD
B: Lead Distt Bank
C: SGSY Task Force
D: SGSY Committee
Answer: (D)
Ques 21: What is the no. of members of a self help group for financing under SGSY scheme?
A: Normally 10-20
B: For disabled 5-20
C: For hilly terrains 5-20
D: all the above
Answer: (D)
Ques 22: What is the quantum of margin under SJSRY scheme?

A: 5% of the project cost
B: 5% of the loan amount
C: 7.5% of the project cost
D: 5-10 % of the project cost
Answer: (A)
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Ques 23: What is not correct in the context of reservation requirement under SJSRY for different kinds
of beneficiaries?
A: women beneficiaries – 30%
B: SC/ST – 40%
C: SC/ST – in the ratio of their composition in the total population
D: disabled- 3%
Answer: (B)
Ques 24: For small scale service business enterprises (SSSBE), the investment ceiling in fixed assets
excluding land and building is:
A: Rs.20 lac
B: Rs.15 lac
C: Rs.10 lac
D: Rs.5 lac
Answer: (C)
Ques 25: Your branch has received a loan application for Rs.4 lac under the scheme for providing
finance for small scale service and business enterprise scheme. The maximum period during which the
application can be disposed off is :
A: two weeks
B: 8-9 weeks
C: 4 weeks
D: 3 weeks
Answer: (C)
Test VIII
Ques 1: Interest and principal can be repatriated by an NRI, in the following accounts ?
A: FCNR
B: NRE
C: EEFC
D: a&b
Answer: (D)
Ques 2: An NRI customer is maintaining accounts with your branch. In which of the following
accounts, the branch can permit him the facility of nomination?
A: non-resident external account
B: foreign currency non-resident account
C: non-resident ordinary account
D: any of the above
Answer: (D)
Ques 3: What is the period for which deposit can be accepted under the scheme Foreign Currency
Non-Resident (B)?
A: minimum 6 months and maximum 12 months
B: minimum 6 months and maximum 36 months
C: minimum 12 months and maximum 24 months
D: minimum 12 months and maximum 60 months
Answer: (D)
Ques 4: A customer informs that his sister is returning permanently to India after her 8 years’ stay in
UK and she wants to retain the repatriability benefits of the money she is bringing with her. Which of
the following accounts can be opened, to suit her needs
A: EEFC account
B: RFC (D) account
C: RFC account
D: NRO account
Answer: (C)
Ques 5: Which among other conditions, is the condition that should be satisfied so as to constitute a
person as resident in India under FEMA?
A: he should have stayed in India for 182 days
B: he should have been in India for 182 days during the previous year
C: he should have been in India for 182 days during the previous calendar year
D: he should have been in India for 182 days during the previous financial year
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Answer: (D)
Ques 6: An exporter approaches for a pre-shipment credit under an LC in his favour issued by an
approved bank in the foreign country. Which among the following documents will be examined by the
bank to determine his eligibility and quantum of loan amount:
A: Import licence
B: Letter of Credit
C: Bill of lading
D: GR/PP form
Answer: (B)
Ques 7: A bill of lading narrates the defective condition of the packing as well as of the goods packed.
Such bills of lading is called:
A: clean bill of lading
B: straight bill of lading
C: short bill of lading
D: claused bill of lading
Answer: (D)
Ques 8: M/s United Exports Ltd obtained an export order for export of hand tools to Germany for US
$ 30000. It has been stated in the credit that in case of need, the exporter can transfer the letter of credit
in favour of any other party. Such a letter of credit
B: transferable letter of credit
C: green clause letter of credit
D: red clause letter of credit
Answer: (B)
Ques 9: A shipping company has issued a bill of lading which does not provide detailed terms and
conditions relating to the contract of carriage. Such bills of lading are called:
A: claused bill of lading
B: short bill of lading
C: straight bill of lading
D: clean bill of lading
Answer: (B)
Ques 10: An exporter gets a letter of credit for export of garments to US but the expiry date of the
credit falls on January 26, which is a public holiday. In such situation the documents for negotiation
can be submitted to the negotiating bank on:
A: the succeeding working day
B: the succeeding business day
C: the succeeding banking day
D: the preceding banking day
Answer: (D)
Ques 11: Corporate Bank opens a letter of credit in favour of an Exporter in Japan on the request of
their import customer Nishikawa Trading Company which is in lieu of a bank guarantee. Such letter of
credit is known as:
A: back to back letter of credit
B: clean letter of credit
C: standby letter of credit
D: irrevocable transferable letter of credit
Answer: (C)
Ques 12: A letter of credit is issued for approximately Rs.10 lac but the invoice of goods sold and the
bill of exchange indicates the amount as Rs.10.90 lac:
A: documents will not be negotiated
B: documents will be negotiated as in such cases the amount can be varied up to 10% less or
more
C: letter of credit has to be got amended for the purposes
D: any of the above.
Answer: (B)
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Ques 13: A letter of credit from an overseas Bank, in favour of M/s Rama Exports provides for
allowing the exporter the advance at pre-shipment stage and also the warehouse facility to the exporter.
Which among the following is the classification of this letter of
A: Transferable letter of Credit
B: Stand by letter of credit
C: Back to back letter of credit
D: Green Clause letter of credit
Answer: (D)
Ques 14: In a letter of credit, by adding a confirmation, the confirming bank undertakes the liability
similar to the:
A: negotiating bank
B: advising bank
C: issuing bank
D: b and c
Answer: (C)
Ques 15: The export declaration form used for software in non-physical form is:
A: SE 1
B: SE 2
C: Softex
D: Software
Answer: (C)
Ques 16: An exporter from India M/s Jaipur Marbles Limited delivers the export consignment to Air
India, the named carrier in the export letter of credit, in fulfillment of their obligation of export. What
kind of transaction will it be categorised:
A: free on board (FOB)
B: cost, insurance and freight (CIF)
C: cost and freight (CF)
D: free carrier allowance (FCA)
Answer: (D)
Ques 17: For import of goods from UK, a customer of Universal Bank enters into an Free on Board
contract. What among the following will be borne by the importer, outside the contract, in this case:
A: cost of goods
B: Freight
C: Insurance
D: b and c
Answer: (D)
Ques 18: Your branch had purchased /negotiated a bill under letter of credit but it is not being paid by
the foreign buyer. After how much period, it will get crystallised?
A: immediately on expiry of the transit period
B: transit period plus 10 days
C: transit period plus 25 days
D: transit period plus 30 days
Answer: (D)
Ques 19: Your branch had sanctioned a pre-shipment 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:
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
Answer: (C)
Ques 20: New Delhi branch of Universal Bank is approached by a foreign tourist to encash three
travellers’ cheques worth 2000 US dollars. The present dollar rate is Rs.45.90. This purchase of TCs
will be called:
A: sale transaction on which selling rate will be applied
B: sale transaction on which TT selling rate will be applied
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C: purchase transactions on which bills buying rate will be applicable
D: purchase transaction on which TT buying rate will be applied
Answer: (D)
Ques 21: When a foreign currency for forward transactions is quoted at discount:
A: the currency is dearer in future
B: the currency is expected to be cheaper in future
C: the currency at same rate in future
D: currency will be available with ease in future
Answer: (B)
Ques 22: Your exporter customer M/s York Exports Limited presents to you an export bill drawn in
Pound Sterling for negotiation under a letter of credit. Which of the following rates will be applied for
this bill?
A: Bills buying rate
B: TT buying rate
C: Bills selling rate
D: TT selling rate
Answer: (A)
Ques 23: Your exporter customer M/s York Exports Limited presents to you an export bill drawn in
Pound Sterling for negotiation under a letter of credit. Which of the following rates will be applied for
this bill?
A: Bills buying rate
B: TT buying rate
C: Bills selling rate
D: TT selling rate
Answer: (A)
Ques 24: Universal Bank is approached by one of their existing customers to retire an import bill
received by the bank for collection from a foreign seller, the due date of which is falling shortly. Which
of the following rates, the bank will apply for this transaction?
A: bills selling rate
B: forward sale contract rate if it is already booked
C: bill buying rate
D: a and b above
Answer: (D)
Ques 25: M/s Sonali Exporters have exported goods worth Rs.30 lac to UK and shipped the same on
January 19, 2004 under a letter of credit. What is the maximum period that they can take for
presentation of documents under a letter of credit to the bank for negotiation?
A: 7 banking days
B: 14 banking days
C: 21 banking days or 21 days of date of bill of lading whichever is later
D: 21 days from date of shipment i.e. date of bill of lading
Answer: (D)
Test IX
Ques 1: The centralized processing system in a bank makes use of which of the following:
A: stand alone computers
B: shared net working
C: computers connected by a communication net work
D: computers connected by internet
Answer: (C)
Ques 2: The term ATM stands for which of the following:

A: automatic teller mechanism
B: automated teller mechanism
C: automated teller machine
D: atomic teller machines
Answer: (C)
Ques 3: The term SWIFT stands for which of the following:

A: Society for world-over international financial transfers
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B: Society for world-wide interbank financial transfers
C: Society for world-wide interbank financial telecommunication
D: Society for worst international financial terrorism
Answer: (C)
Ques 4: 1024 bytes are equal to:

A: 1 kilobyte
B: 1 megabyte
C: 1 gigabyte
D: 1 terabyte
Answer: (A)
Ques 5: The term RAM stands for which of the following:

A: read able memory
B: random access memory
C: readable accessing memory
D: read & access memory
Answer: (A)
Ques 6: The device that converts an image into electronic form by shining light and sensing the
intensity of the reflection at every points:
A: bar code
B: light pens
C: Scanner
D: touch screen
Answer: (C)
Ques 7: The device that connects the computer with a telephone line and helps in modulation and
demodulation:
A: UPS
B: Modem
C: Plotter
D: CPU
Answer: (B)
Ques 8: The program that initializes the machines to make it operational is covered under the category
of:
A: system software
B: system hardware
C: application software
D: non-utility software
Answer: (A)
Ques 9: The term BIOS represents which of the following:

A: Basic input and output system
B: Basic input output standard
C: Base input outward system
D: basic inward outward standard
Answer: (B)
Ques 10: The customer is identified by the software by his personal ID and pass-word/key word for
providing him non-cash services in which of the following:
A: corporate banking
B: Internet
C: tele-banking
D: ATM system
Answer: (C)
Ques 11: The term e-Commerce represents which of the following:

A: economical commerce
B: electrical commerce
C: electronic commerce
D: elementary commerce
Answer: (C)
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Ques 12: The funds that could be loaded into a card, which could be used as cash in case of need:
A: credit card
B: smart card
C: electronic cash
D: narrow money
Answer: (C)
Ques 13: The physical parts of a computer are known as:

A: Software
B: Hardware
C: Shareware
D: fixed-ware
Answer: (B)
Ques 14: The term WWW is used for which of the following:
A: world wide web
B: world wise web
C: web world wide
D: wide world web
Answer: (A)
Ques 15: Which of the following, better describes the term internet:
A: a network of stand alone computers
B: a network of servers
C: a network of networks
D: a network of world-wide computers
Answer: (C)
Ques 16: Which of the following is the part of hexadecimal number system:
A: A
B: A134
C: 1600
D: 1010
Answer: (A)
Ques 17: A device that looks like a CD-ROM but for which a separate drive is needed to read it and it
carries huge storage space :
A: Floppy
B: floppy drive
C: hard disk drive
D: digital versatile disk
Answer: (D)
Ques 18: The term CAD in the context of use of computers, means:
A: computer application design
B: computer aided design
C: computer appraised data
D: computer assisted deptt
Answer: (B)
Ques 19: What is the name for the system which uses electronic means to collect payments from
customers made by the credit/debit card holders and installed at retailers:
A: ATM
B: POS
C: CBT
D: CIP
Answer: (B)
Ques 20: IDRBT stands for which of the following:

A: Institute for Development and Research in Banking Technology
B: Institute for Development and Research in Business Technology
C: Institution of Development and Research in Banking Technology
D: Institute for Development of Rural Banking Technology
Answer: (A)
65
Ques 21: The electronic system that provides transmission of financial messages through out the world
and is live all the times:
A: EFT
B: SWIFT
C: GIRO
D: UCC
Answer: (B)
Ques 22: The debit payment system that works on the principle of multiple debits and a single credit:
A: debit clearing
B: electronic debit clearing
C: electronic clearing
D: electronic clearing service
Answer: (B)
Ques 23: The payment system in which there is a single debit and multiple credit:
A: electronic clearing service
B: electronic debit service
C: electronic funds transfer
D: SWIFT
Answer: (A)
Ques 24: Which of the following cannot be categorized as a word processor:

A: MS word
B: Word Perfect
C: Word Star
D: Windows Excel
Answer: (D)
Ques 25: Which of the following terms describes the computer program better:
A: hardware instruction
B: input devices
C: output device
D: Software
Answer: (D)
Test X
Ques 1: What is the maximum ceiling on Foreign Direct Investment (FDI) for investment in the
equity of public sector banks in India:
A: 20%
B: 25%
C: 40%
D: 49%
Answer: (A)
Ques 2: The term broad money is known as:

A: M1
B: M2
C: M3
D: M0
Answer: (C)
Ques 3: The market based approach aimed at neutralizing part or whole of the monetary impact of
foreign exchange inflows is termed:
A: Sterlisation
B: Neutralization
C: Globalisation
D: liquidity adjustment
Answer: (A)
Ques 4: In which of the following kinds of financing the banks can take up financing for medium
term (5-7 years) out of the very long term nature of the projects (15-20 years):
A: Securitization
B: Take out financing
66
C: Project participation
D: Consortium
Answer: (B)
Ques 5: What is an Indian Depository Receipt?

A: A depository account with any of Depositories in India
B: A deposit account with a public sector bank
C: An instrument in the form of depository receipt created by an Indian depository against
underlying equity shares of the issuing company
D: An instrument in the form of deposit receipt issued by Indian depositories
Answer: (C)
Ques 6: There are certain financial instruments whose prices are derived from the price of the
underlying currency or interest rate or stocks etc. These are known as:
A: Derivatives
B: Securitisation
C: Leasing
D: Factoring
Answer: (A)
Ques 7: The concepts of Monetary Aggregates and Liquidity aggregates such as M1, M2, M3 and L1,
L2 and L3 have been revised on the recommendations of which of the following committees:
A: Narasimham Committee
B: Rangarajan Committee
C: Raja Chelliah Committee
D: Y V Reddy Committee
Answer: (D)
Ques 8: Which of the following can be considered as fiscal deficit ?

A: total income less govt. borrowing
B: total payments less total receipts
C: total payments less capital receipts
D: total expenditure less total receipts excluding borrowing
Answer: (D)
Ques 9: In the context of capital adequacy ratio Accord I, the subordinated debt is a component of
which of the following:
A: Tier I capital fund
B: Tier II capital Fund
C: Tier III capital
D: a and b
Answer: (B)
Ques 10: Negotiated Dealing System relates to:

A: trading at stock markets
B: trading in Govt. securities
C: Settlement of security dealings
D: Settlement of share payments
Answer: (B)
Ques 11: Which of the following is one of the disclosures introduced by RBI for balance sheet:
A: advances against selective credit control
B: advances against selective items
C: advances against software development
D: advances to sensitive sectors
Answer: (D)
Ques 12: A committee was constituted in the year 1993 by RBI to review the system of cash credit,
which had suggested the system of working capital demand loan and cash credit component. This is
known as:
A: Jilani Committee
B: Shetty Committee
C: Vaz Committee
D: Chore Committee
Answer: (A)
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Ques 13: Who among the following can not issue a commercial paper ?
A: Companies
B: Financial Institutions
C: Primary dealers
D: commercial banks
Answer: (D)
Ques 14: The demat shares of a public sector undertaking are converted in to physical shares. This
process is called:
A: re-issue of shares
B: dematerilisation of shares
C: re-materialisation of shares
D: demutualisation of shares
Answer: (C)
Ques 15: When does a commercial paper becomes transferable:

A: Not transferable
B: After 15 days of issue
C: After 29 days of issue
D: Any time
Answer: (D)
Ques 16: For banks to enter into insurance sector, among others, the CRAR should not be less than:
A: 8%
B: 9%
C: 10%
D: 11%
Answer: (C)
Ques 17: RBI regulates the money market and SEBI regulates the capital market. Which segment is
regulated by IRDA, out of the following sector:
A: Telecom
B: Insurance
C: Banking & Finance
D: Forex Markets
Answer: (B)
Ques 18: The receivables of various loans and obligations are put together and distributed amongst
investors, in which of the following:
A: Leasing
B: Factoring
C: Securitisation
D: Venture capital
Answer: (C)
Ques 19: Beyond the minimum amount of Rs.1 lac for a CD, it can be issued in the multiple of Rs.:
A: 10 lac
B: 5 lac
C: 1 lac
D: 50000
Answer: (C)
Ques 20: Commencement of employees’ working hours should be 15 minutes before the
commencement of business hours. Which of the following committees gave these recommendations ?
A: Jankiraman Committee
B: Talwar Committee
C: M Narasimham Committee
D: Goiporia Committee
Answer: (D)
Ques 21: The term `special purpose vehicle’ is used in which of the following contexts:
A: factoring of receivables
B: forfaiting of export receivables
C: venture capital funding
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D: securitisation of receivables
Answer: (D)
Ques 22: INFINET stands for:

A: International Financial Network
B: Indoor Financial Network
C: Indian Financial Network
D: Internet Financial Network
Answer: (C)
Ques 23: When the objective is to conduct the affairs of a company or bank in a transparent manner for
giving fair deal to all the stake holders, this is called:
A: implementation of prudential guidelines
B: organisational restructuring
C: corporate governance
D: corporate restructuring
Answer: (C)
Ques 24: Which among the following is approved modes for maintenance of the cash reserve ratio:
A: in the form of balance in currency chest of the currency chest bank branches
B: in the form of cash balances maintained by various branches of the banks
C: in the form of balances with other banks maintained by bank branches
D: in the form of balances in a special account with RBI opened for this purpose
Answer: (D)
Ques 25: Who is Dy Chairman of Planning Commission

A: V Leeladhar
B: M.S.Ahluwalia
C: S S Kohli
D: Dalbir Singh
Answer: (B)
Mock Test 1
Ques 1: The margin money available as subsidy to rural industry from KVIC, for a proposal involving
project cost of Rs.10 lac is maximum of ?
A: Rs.5.00 lac
B: Rs.4 lac
C: Rs.3.50 lac
D: Rs.2.50 lac
Answer: (D)
Ques 2: For acknowledgment of debt, the Central govt. has prescribed the payment of stamp-duty at
which of the following rates?
A: Rs.0.50
B: Rs.1
C: Rs.2
Answer: (D) (It is prescribed by State Govt)
Ques 3: When a bank grants a loan to a borrower on the basis of hypothecation of the assets, with
whom does the possession and ownership remain?
A: borrower & bank
B: bank and borrower
C: Borrower
D: Bank
Answer: (C)
Ques 4: Under which of the following Acts, does NABARD carries the inspection of commercial
banks in India?
A: RBI Act 1934
B: Banking Regulation Act 1949
C: Companies Act 1956
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Answer: (D)
Ques 5: What is the amount limit in respect of priority sector advances in general, where the banks do
not charge inspection and service charges?
A: Rs.10000
B: Rs.15000
C: Rs.25000
D: Rs.50000
Answer: (C)
Ques 6: The term mulberry relates to which of the following?

A: fish farming
B: cultivation of mushroom
C: Sericulture
D: fruit production
Answer: (C)
Ques 7: Banks deduct subscription payable to Bank Employee Unions under which of the following?
A: Bipartite settlement
B: Check off system
C: Check out system
D: Instructions of Labour Commissioner
Answer: (B)
Ques 8: Popular Bank receives a cheque with account payee crossing and special crossing in favour of
Model Bank. The cashier of the Model Bank presents this cheque for cash payment to the Popular
Bank?
A: cheque can be paid by way of a bank draft
B: cheque cannot be paid being crossed cheque
C: cheque is being presented by a bank, hence it can be paid in cash
D: cheque has to be held back unless the crossings are cancelled
Answer: (C)
Ques 9: Corporate Bank sanctioned a loan of Rs.2 lac against the security of national saving
certificate, in favour of a person X, who has expired recently in a road accident. The payment of the
NSCs:?
A: will be made to legal heirs
B: will be obtained by the bank
C: will be made to the nominee
D: will be made only on the basis of succession certificate
Answer: (B)
Ques 10: Model Bank issued an FDR in the name of Mr. X and his wife W. Mrs W comes to the bank
and request for premature payment to meet the expenses on treatment of Mr. X who is admitted to one
hospital and cannot sign, because of fractured hands:
A: the request of W will be considered on sympathetic consideration
B: the request of W will be considered on production of certificate from the hospital to the effect
that Mr.X is admitted
C: the request of W will be turned down altogether
D: payment can be made after verifying the facts and after obtain thumb impression of Mr. X in
the hospital, witnessed by the attending Doctor
Answer: (D)
Ques 11: Which of the following cannot enter into a valid contract?
A: a blind person
B: a pardanashin lady
C: an illiterate person
D: a minor of age of 17+ years
Answer: (D)
Ques 12: Banks are required to submit to RBI a statement of unclaimed deposits. What is the time
period for considering a deposit as unclaimed deposit?
A: which is not being operated
B: which is not operated for 6 months
C: which is not operated for 12 months
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D: which is not operated for 10 years
Answer: (D)
Ques 13:Which of the following is true with regard to creation of equitable mortgage.
A: it can be created at a place where the property is located
B: it can be created through an instrument in writing
C: it can be created at centres notified by the State Govt. only
D: it can be created by delivery of title deed along with an instrument in writing
Answer: (C)
Ques 14:What is full form of the term PMRY

A: Prime Minister’s Rozgar Yojna
B: Prime Minister’s Revenue Yojna
C: Prime Movers Rated Yield
D: a and b
Answer: (A)
Ques 15: Which of the following industry segment does not have a ceiling of investment in plant and
machinery up to Rs.5 cr for the purpose of considering such units as SME.
A: Agro and food processing
B: Stationery manufacturing
C: Drugs & pharmaceuticals
D: Powerlooms & handlooms
Answer: (Now all units with investment upto Rs, 5 cr are covered under Small Ent)
Ques 16:Which of the following had launched the RIDF scheme.

A: RBI
B: IBA
C: NABARD
D: Govt. of India
Answer: (D)
Ques 17:Tarapore Committee recommendations are associated with which of the following?
A: Universal Banking system
B: Capital account convertibility
C: Reforms in Balance of payment system
D: Banking computerization
Answer: (B)
Ques 18:What is the maximum amount up which the award can be given by the Banking Ombudsman?
A: Rs.2 lac
B: Rs.5 lac
C: Rs.10 lac
D: Rs.20 lac
Answer: (C)
Ques 19:A person not having a PAN and not liable to pay income tax is required to make declaration
on which of the following:
A: Form No.16
B: Form No.24
C: Form No.60
D: Form No.62
Answer: (C)
Ques 20:What is the full form of the term ‘OBU’.

A: Other backward units
B: Overseas banking units
C: Off-shore Banking Units
D: Off-shore business units
Answer: (C)
Ques 21:Which of the following is not covered under Section 88 of Income Tax Act 1961 for the
purpose of obtaining rebate from salary of a govt. employee?
A: contribution to employees’ provident fund
B: payment of premium on a life insurance policy
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C: investment in national saving certificates
D: standard deduction
Answer: (D)
Ques 22:What is the minimum maturity period for which commercial paper can be issued:
A: 7 days
B: 10 days
C: 15 days
D: 30 days
Answer: (A)
Ques 23:Section 31 of RBI Act covers which of the following aspect of financial sector?
A: restricts undertaking of banking business by non-bank finance companies
B: restricts use of currency notes as promissory notes
C: restricts issue of bills of exchange payable on demand to bearer by any person other than RBI
and Central Govt.
D: prohibits banking companies from undertaking non-banking activities
Answer: (C)
Ques 24 Real Time Gross Settlement is connected with which of the following?
A: a centralized payment system being run by RBI
B: a settlement system at Bombay Stock Exchange
C: a control mechanism used by RBI to check transactions in govt. securities
D: a system used by Ministry of Finance for monitoring tax collections
Answer: (A)
Ques 25:What is full form of CIBIL.

A: Credit Information Board India Limited
B: Credit Information Bureau India Ltd
C: Cash Information Board in India Ltd
D: Credit Indicator Board for Industry Ltd
Answer: (B)
Ques 26:Education Cess is payable on which of the following types of taxes?

A: income tax/corporate tax
B: Service tax
C: Excise & customs duty
D: all the above
Answer: (D)
Ques 27:What is the maximum quantum of loan that could be considered for sanction to a dealer in
tractor and agricultural machinery under indirect advance to agriculture, as part of the priority sector
advances:
A: Rs.10 lac
B: Rs.20 lac
C: Rs.30 lac
D: No ceiling
Answer: (C)
Ques 28:XYZ Limited, a joint stock company has been under voluntary liquidation on the basis of
resolution passed by the shareholders of the company. Its assets would be in possession of:
A: share-holders
B: Board of directors
C: Official assignee
D: Official liquidator
Answer: (D)
Ques 29:An old person of 71 year old maintaining a term deposit account with your branch wants to
nominate in the account. Who among the following can not be the nominee:
A: his married daughter living in US as an NRI
B: his old mother aged 92
C: his grand son aged 9 years
Answer: (D)
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Ques 30:Mrs. Rajni, running a Chemist shop is maintaining a current account as proprietor, in the name
of M/s Rajni Medicos for the last 5 years. She wants to nominate her minor son aged 6 years to this
account:
A: Being an account of a firm, nomination is not allowed
B: the minor being too young cannot become a nominee
C: if the name of the person who would obtain payment on behalf of the minor is also indicated,
the nomination can be accepted
D: if she undertakes that bank will not be responsible, the nomination could be accepted
Answer: (C)
Ques 31:Which of the following kinds of crossing restrict the negotiation of a bill of exchange:
A: not negotiable crossing
B: account payee crossing
C: special crossing
Answer: (D)
Ques 32:Under which of the following circumstances, a bank can insist on registration of a partnership
firm which is not registered with Registrar of Firms?
A: for opening a current account, where there is no partnership deed
B: for opening a current account when one of the partners is a minor
C: for sanctioning working capital limits when amount is above Rs.10 lac
Answer: (D)
Ques 33:Which of the following cannot be deducted from the subsistence allowance of an officer,
suspended by the bank:
A: Rent of house in which water & light charges are included
B: Society’s loan instalment
C: Income Tax
D: Professional Tax
Answer: (D)
Ques 34:What is not true with regard to liability of a person under a contract of guarantee?
A: guarantee is co-extensive with that of the creditor
B: guarantor is liable to pay only when the money cannot be recovered from the principal debtor
C: on payment of the guaranteed money, the guarantor gets a right called right of redemption
D: all the above
Answer: (D)
Ques 35:For considering an account as non-performing advance, which of the following is to be taken
into account, basically:
A: means of the borrower & guarantor
B: primary and collateral security
C: compliance of conditions of sanction, before disbursement
D: repayment record of the loan
Answer: (D)
Ques 36:In which of the following currencies, a Foreign Currency Non-resident Account can be opened
by a bank:
A: US $, Euro and Pound only
B: US $, Euro, British Pound and Yen only
C: US $, Euro, British Poundm Yen and Canadian$ only
D: US $, Euro, British Pound, Yen, Canadian$ and Australian$ only
Answer: (D)
Ques 37:An overdraft is sanctioned to a proprietorship firm without obtaining any collateral security.
The limitation in this account would run from:
A: date of document
B: date of first disbursement
C: date of last disbursement
D: date of refusal to sign acknowledgement
Answer: (A)
Ques 38:An executor is a person:
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A: who is nominated in an account by the deposit account holder
B: who is appointed by a competent court
C: whose name is mentioned in the will of the deceased person
D: who is appointed by the legal heirs after the death of a person
Answer: (C)
Ques 39:What is the minimum period for which an NRE term deposit account can be allowed:
A: 3 months
B: 6 months
C: 12 months
D: 24 months
Answer: (C)
Ques 40:Banks in India undertake, Central as well as State Govt. business such as collection of tax,
payment of pension etc. on behalf of:
A: Central Govt.
B: State Govt.
C: Reserve Bank of India
D: State Bank of India
Answer: (C)
Ques 41:Who among the following will be the guardian of a minor married women, whose husband,
who was a major, has expired:
A: her mother, if father is not alive
B: her father
C: her father-in-law, if alive
D: her mother-in-law
Answer: (C)
Ques 42:A cheque dated Sept 12, 2007, signed by the power of attorney holder of the account holder, is
presented for payment on October 22, 2007. Prior to this, bank has received the notice of death of the
account holder on Sept 10, 2007.
A: the cheque cannot be paid, as the authority of the power of attorney ceases to exist on date of
payment
B: the cheque cannot be paid, as it has been signed after the death of the account holder
C: the cheque can be paid, as it appears to be revocable power of attorney
D: the cheque can be paid, as the power of attorney holder is alive on the date of cheque
Answer: (A)
Ques 43:For a self help group to become eligible for revolving fund facility available as subsidy and
bank loan, which of the following is a mandatory condition:
A: the group should be existing for the last 2 years
B: the group should be engaged in some social activity
C: the group should have bank linkage of at least 6 months
D: the group should be approved by the NABARD
Answer: (C)
Ques 44:Finance can be sanctioned under indirect finance to agriculture for construction of storage
godowns for which of the following commodities:
A: potatoes and onions only
B: green vegetables only
C: agricultural produce/products irrespective of location
D: agricultural produce in rural areas
Answer: (C)
Ques 45:The account opened by a foreign bank (working in a foreign land) in India in Indian currency,
with a bank in India is known as:
A: nostro account
B: vostro account
C: loro account
D: such account cannot be opened
Answer: (D)
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Ques 46:While opening current a/c of Triveni Enterprises, the Corporate Bank observes from the
partnership deed that M/s Triveni Limited, a joint stock company, is also one of the partners in the
firm:
A: it is illegal partnership firm. Hence account cannot be opened.
B: it is illegal association which cannot open the account
C: firm does not attract any legal deficiency by virtue of a company being a partner. Hence
account can be opened
D: account can be opened after having permission from ROC.
Answer: (C)
Ques 47:Commerce Bank receives an LC from its correspondent banks in favour of an exporter not
dealing with the bank. The LC, authorizes the Bank to permit the pre-shipment credit to the exporter to
enable him to ship the goods in time. Such a credit is called:
B: red-clause letter of credit
C: transferable credit
D: standby credit
Answer: (B)
Ques 48:Corporate Bank receives documents under LC for negotiation from Exports India. LC was
originally issued in favour of Tanu Exports which transferred it in favour of Jyoti Enterprises. It further
transferred in favour of Exports India. What kind of irregularity.
A: credit being revocable or otherwise has not been stated clearly.
B: amount is not stated clearly and can lead to dispute
C: transferable credit can be transferred once only while it has been transferred more than once
D: a to c all
Answer: (C)
Ques 49:Popular bank had granted a loan to Master Shailesh to meet his education expenses which was
guaranteed by his maternal uncle Mohinder. The loan is not being repaid by Shailesh. Which of the
following remedy is available with the bank:
A: loan is given against necessities. Hence recoverable from Shailesh
B: loan is given on the guarantee of his uncle. Hence he becomes principal borrower and loan can
be recovered from him.
C: loan is given for education and is recoverable from Shailesh when he completes his education
and turns major
D: loan can be recovered from the borrower or the guarantor even
Answer: (D)
Ques 50:A company makes a request for sanction of term loan of Rs. 30 cr. Which of the following
would be taken care of by the bank while granting the loan:
A: Borrowing should not exceed paid-up capital and reserves
B: borrowing should not be more than paid up capital
C: borrowing should not be more than 30% of bank’s capital
D: borrowing should not be more than exposure limit of the company
Answer: (A)
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Mock Test II
Ques 1: Under priority sector targets, which of the following is correct so far as lending to
agriculture is concerned?
A: 18% of the total credit
B: 25% of the net bank credit
C: indirect finance to agriculture should not be more than 25% of agriculture advances
D: direct finance to agriculture cannot exceed 13.5% of the net bank credit
Answer: (C)
Ques 2: What is the maximum amount of a transaction, that can be carried under electronic
funds transfer (EFT) facility being operated by RBI?
A: Rs.10 lac
B: Rs. 50 lac
C: Rs.200 lac
D: No ceiling
Answer: (D)
Ques 3: Which of the following committees, introduced the term ‘working capital term loan’
representing excess borrowing by a borrowing unit?
A: Kapoor Committee
B: Jilani Committee
C: Tandon Committee
D: Chore Committee
Answer: (C)
Ques 4: What is true with regard to the maximum extent up to which a loan can be sanctioned
under housing finance, in rural area?
A: for construction Rs.5 lac
B: for repairs Rs.0.50 lac
C: Rs.1 lac for repairs and Rs.5 lac for construction
D: Rs.1 lac for repairs and Rs.15 lac for construction
Answer: (D)
Ques 5: Tax deducted at source while making payment to a contractor, should be deposited with
the Govt. within a period of?
A: 3 days from date of deduction
B: 7 days from date of deduction
C: 15 days of date of deduction
D: 7 days from close of the month in which deducted
Answer: (B)
Ques 6: Which of the following is the formulae for working out current ratio in respect of a
trading concern?
A: current assets – current liabilities
B: current assets / current liabilities
C: current liabilities / current assets
D: current assets / working capital limits
Answer: (B)
Ques 7: While sanctioning a term loan to a company, which of the following ratios is most
relevant and taken into account by the financing bank?
A: current ratio
B: debt equity ratio
C: debt repayment ratio
D: debt service coverage ratio
Answer: (D)
Ques 8: Which of the following is not reflected by the study of funds flow statement of a
borrowing unit?
A: how the funds have been mobilized
B: how the funds have been utilized
C: how the profits have been earned
D: what is the effect on net working capital
Answer: (C)
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Ques 9: The registration of which of the following transactions on payment of stamp duty is
mandatory in India?
A: equitable mortgage
B: Hypothecation
C: Pledge
D: simple mortgage
Answer: (D)
Ques 10:Under Section 125 of Companies Act, the filing of particular for getting a charge
registered with Registrar of Companies for certain transanctions, is the responsibility of?
A: borrowing company
B: financing bank
C: managing director of a company
D: shareholders of the a company
Answer: (A)
Ques 11:For financing a pump set, which of the following standards will be taken into account?
A: ISO 9001
B: ISO 9002
C: ISO 9004
D: BIS
Answer: (D)
Ques 12:Mr. X and Y are having a joint account in which they have nominated Mr. A. On death
of Mr. X, Mr A approaches the bank for payment?
A: being nominee, payment would be made to A
B: Y being alive, payment would be made to Y as survivor
C: Y being alive and payment would be made to nominee and Y jointly
D: payment would be made to Y and legal heirs of X
Answer: (D)
Ques 13:Popular Bank has issued a term deposit receipt in the name of Mr. A and B to be
operated as former or survivor. A approaches the bank for addition of name of Mr. X, his son
and also nominate Mr. Z his brother in law. He claims that the money belongs to him
A: addition of name would be allowed but not nomination
B: nomination would be permitted but not addition of name
C: addition of name and nomination would be permitted as request is from former
D: without consent of B addition or nomination cannot be accepted
Answer: (D)
Ques 14:Preservation of bank records is mandatory under which of the following Acts?
A: RBI Act 1934
B: Preservation of Books Act 1902
C: Indian Evidence Act
D: Banking Regulation Act 1949
Answer: (D)
Ques 15:As per Central Vigilance Commission guidelines, CVC has jurisdiction over which
category of the following:
A: Award staff
B: Junior Officers & above
C: Middle Management
D: Senior Management Grade V and above
Answer: (D)
Ques 16: What is the amount of subsidy for Self Help Group in case of SGSY loan accounts.
A: 15% maximum Rs.10000
B: 15% maximum Rs.1.25 lac
C: 50% maximum Rs.1 lac
D: 50% maximum Rs.1.25 lac
Answer: (D)
Ques 17: Which among the following is the maximum amount of education loan (domestic and
foreign), that could be allowed under priority sector
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A: Rs.5 lac and Rs.10 lac respectively
B: Rs.5 lac and Rs.15 lac
C: Rs.7.5 lac and Rs.10 lac
D: Rs.10 lac and Rs.20 lac
Answer: (D)
Ques 18:Dada Saheb Phalke award is related to which of the following?

A: Indian cinema
B: Indian sports
C: Indian Literature
D: Indian research & development
Answer: (A)
Ques 19: The capacity in which the Banking Ombudsman functions in respect of dispute among
two banks is known as that of :
A: Judge of High Court
B: Advisor
C: Arbitrator
D: Match-maker
Answer: (C)
Ques 20: Up to what extent no collateral security is required to be obtained by the banks, for
sanction of education loan?
A: Rs.2 lac
B: Rs.4 lac
C: Rs.5 lac
D: Rs.7.5 lac
Answer: (D)
Ques 21: Ghosh Committee is associated with which of the following aspects of banking?
A: Bank Frauds
B: Concurrent Audit System
C: Photograph in deposit accounts
D: a to c
Answer: (D)
Ques 22:Under PMRY, what is the maximum amount of loan that could be allowed in case of
industry related activity undertaken by individual?
A: Rs.87500
B: Rs.90000
C: Rs.100000
D: Rs.190000
Answer: (D)
Ques 23: Negotiated Dealing System relates to which of the following aspect of financial sector:
A: Clearing system at national level
B: submission of information relating to trading in stocks and shares by banks
C: submission of bids for participating in govt. securities
D: submission of returns by banks in foreign exchange transactions
Answer: (C)
Ques 24: By an exporter, which of the following kinds of letters of credit are given preference.
A: Revocable, with recourse
B: Irrevocable, with recourse
C: Irrevocable, without recourse
D: Irrevocable, without recourse, confirmed
Answer: (D)
Ques 25: The term FEDAI stands for which of the following:
A: Film & Entertainment Dealers Association of India
B: Foreign Exchange Departmental Association of India
C: Foreign Exchange Dealers Association of India
D: Finance and Entertainment Deptt. Associates of India
Answer: (C)
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Ques 26: Which of the following modes is the best for opening an account of a person of unsound
mind?
A: After obtaining a certificate and witness from local MLA or MP
B: After having permission from the Distt. Collector
C: After getting a certificate from Chief Medical Officer of the Distt
Answer: (D)
Ques 27: A private limited company ABC Pvt Ltd wants to open a current account with your
branch. Which of the following are not required to be obtained from the company:
A: Memorandum & Articles of Association
B: Resolution of Board of Directors & Certificate of incorporation
C: Certificate of Incorporation
D: Introduction as required under KYC guidelines
Answer: (C)
Ques 28: Guarantee is defined as a contract to perform the promise or discharge the liability of a
3rd party. Which of the following, defines this term :
A: General Clauses Act
B: Companies Act
C: Indian Evidence Act
D: Indian Contract Act
Answer: (D)
Ques 29: Housing Loans upto Rs._____ lakh, irrespective of location are treated as a part of P.S.
Lending?
A: Rs. 5 lakh
B: Rs. 10 lakh
C: Rs. 20 lakh
D: Rs. 25 lakh
Answer: (C)
Ques 30: Under the provisions of which of the following, a licence is issued by RBI for opening a
branch in rural area:
A: Section 22 of RBI Act
B: Section 23 of Banking Regulation Act
C: Section 24 of RBI Act
D: Section 31 of Banking Regulation Act
Answer: (B)
Ques 31: Mr. B, a saving bank account and fixed deposit account holder with your branch, gives
introduction of Mr. X who wants to open a saving bank account. Subsequently, Mr. X commits
fraud involving a sum of Rs.50000. What is the liability of Mr. B?
A: As an introducer, B has no liability if he is not a party to the fraud
B: As an introducer, B has 50% liability for the loss
C: B is fully liable as fraud has taken place because of his negligence
D: bank can claim the entire amount from B and can initiate recovery proceedings as principal
debtor
Answer: (A)
Ques 32: Mr. X has been maintaining two loan accounts with your branch, one of which has
become time barred due to non-cooperation of the borrower. A sum of Rs.15000 is deposited in
the name of Mr. X by Mr. Z. How the bank would deal with this amount ?
A: it can be credited only to the loan account which is not time barred
B: it can be credited only to the loan account which is time barred
C: it can be credited to any of the loan accounts at the discretion of the bank
D: it can be credited to the time barred loan account with the consent of the borrower
Answer: (C)
Ques 33: Which of the following reasons cannot be given on the cheque returning memo when a
cheque is returned?
A: insufficient funds
B: exceeds arrangements
C: cutting requires confirmation
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D: refer to the drawer
Answer: (D)
Ques 34: A contract of import of raw material from Australia is made by your borrower on a
CIF basis. Which is true with regard to this contract:
A: the exporter will bear the cost of the goods only
B: the exporter would bear the cost of goods and insurance cost
C: the exporter would bear the cost of goods, freight and insurance cost till port of destination
D: the exporter would bear the cost of goods, freight, sea insurance and inland insurance
Answer: (C)
Ques 35: At the time of issue of a cheque, it has been crossed as ‘account payee only’. This
crossing a direction of ….. for ….:
A: payee, paying bank
B: payee, collecting bank
C: drawer, paying bank
D: drawer, collecting bank
Answer: (D)
Ques 36: A garnishee order has been received in the name of Mr. X who is associated with the
following accounts maintained with your branch. In which of these accounts the order would be
applicable:
A: account in the name of his minor wife under his guardianship
B: overdraft account having un-availed limit of Rs.35000
C: account of a trust where he is the sole trustee
Answer: (D)
Ques 37: Your branch sanctions to M/s XYZ, a partnership firm, cash credit facility against the
book debts of less than 90 days. Which of the following kinds of charges would be created:
A: a charge with ROC
B: Mortgage
C: Hypothecation
D: Assignment
Answer: (D)
Ques 38: An artisan can be issued credit card for meeting his credit needs, for a maximum
amount up to:
A: Rs.2 lac
B: Rs.3 lac
C: Rs.5 lac
D: Rs.10 lac
Answer: (C)
Ques 39: What is the number of working directors in a public sector bank as per extant
provisions:
A: three, Chairman &Managing Director and 2 Executive Directors
B: two, Chairman and Managing Director and Executive Director
C: 15, besides CMD and ED, 13 more.
D: as per direction of RBI and Ministry of Finance
Answer: (A)
Ques 40: Commerce Bank having cash credit account of M/s Shan Fabrics Limited, receives a
cheque dated 2 months back, for Rs.2.04,034/-, signed by the Finance Director of a company,
about whom the bank has a confirmed report about his death 10 days ago.
A: since the signing authority has expired, payment cannot be made.
B: being account of a company, which has perpetual existence, the cheque can be paid, after
having permission from the Managing Directory of the company
C: the cheque can be paid, as the director signed it as an agent, before his death
D: the cheque should be paid, as it is in favour of a govt. department and govt. dues has a priority
always
Answer: (C)
Ques 41: In which of the following, what is not matched as per the extant guidelines concerning
interest rates:
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A: saving bank deposits : 3.5% p.a.
B: repo rate 7.75%
C: reverse repo 6.00%
D: CRR 3%
Answer: (D) (No intt is payable on CRR deposits)
Ques 42: Corporate Bank has issued a guarantee on the request of its customer M/s Dhanlaxmi
Enterprises and to secure itself it has got a counter-guarantee. The counter guarantee in this case
would be termed as:
A: Agreement
B: undertaking for making payment
C: declaration about honouring the commitment
D: Indemnity
Answer: (D)
Ques 43: A letter of credit received by M/s Yogeshwari & Co. provides for issue of another letter
of credit in favour of the supplier of M/s Yogeshwari & Co. on the request of Yogeshwari & Co
and on the strength of original letter of credit. It falls under which type of LC
B: red-clause letter of credit
C: transferable credit
D: standby credit
Answer: (A)
Ques 44: State Bank issued LC favouring Rohini Enterprises in Delhi covering supply of
garments from M/s Kolkata Garments for Rs.10 lac. The beneficiary wants to make use of the
LC repeatedly but within the limit of Rs.10 lac. Which credit would be suitable for this?
A: Revolving letter of credit
B: Back to back letter of credit
C: Red clause letter of credit
D: standby credit
Answer: (A)
Ques 45: Mrs. Shanti Devi, mother of Deepti, her daughter has raised a loan of Rs. 50000 on the
security of a term deposit with 8 years’ maturity period, in her name. She wants addition of name
of Deepti so as to avoid any problem later on, in obtaining the payment.
A: request cannot be accepted since, this will change the contract
B: request can be accepted since Deepti is her daughter
C: request cannot be accepted till the loan is outstanding
D: request can be accepted if Deepti agrees to repay the loan
Answer: (C)
Ques 46: A firm has made payment of insurance premium in on March 22, 2007 for one year and
its annual closing takes place on March 31st. The pre-paid insurance, would be classified by the
firm as:
A: current liability
B: intangible asset
C: current asset
D: adjustment from the capital account of the partners
Answer: (C)
Ques 47: The long term uses of funds are reduced from the loan term liabilities (including net
worth) of a firm, which gives:
A: Working capital gap
B: Net working capital
C: Working Capital
D: Break-even point
Answer: (B)
Ques 48: A joint stock company wants WC limit of Rs.20 cr for projected sales of Rs.70 cr, which
appear to be justified in the light of its requirement. Which among the following method would
be used for this purposes:
A: conventional method as suggested by Nayak Committee
B: Funds flow method suggested by Jilani Committee
C: Working Capital term loan method as suggested by Chore Committee
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D: Maximum permissible bank finance methods called conventional method, as suggested by
Tandon Committee
Answer: (D)
Ques 49: An SME unit engaged in manufacture of cycle parts makes a request for sanction of CC
Limit Rs.50 lac as minimum amount of such limit as per Nayak Committee and DP letter of
credit limit of Rs.20 lac. What will be the amount of turnover of the firm:
A: Rs.350 lac
B: Rs.250 lac
C: Rs.200 lac
D: Rs.280 lac
Answer: (B)
Ques 50: A state-sponsored corporation has been granted a loan of Rs.5 cr for on-lending to
weaker sector. Such advance would be classified by the concerned bank as:
A: advance under DRI scheme
B: advance under weaker sector
C: indirect advance to weaker sector
D: indirect advance to agriculture
Answer: (D)
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MOCK PRACTICE TEST: 1
Que 1 Global Bank is having a current account of M/s Ruchi Enterprises and a cheque of
Rs.13500 is presented through clearing, drawn in favour of Mr. Ramesh. Through an oversight
the cheque is dishonoured wrongfully. When information about this dishonour is received by Mr.
Ramesh, he sends a notice to the Global Bank for wrongful dishonour and claims damages. What
would you do with this notice?
a Bank should contact Mr. Ramesh for withdrawls of the notice for damages.
b Banks should contact the drawer and ask them to prevail upon the payee for withdrawal of
the notice.
c Bank can ignore this notice as the bank is not liable for such damages to the payee.
d Bank is liable to the drawer of the cheque and no one else.
e c and d above
Ans: (e)
Que 2 Corporate Bank had opened a saving bank account in the name of Mr. Subramanian
and Murlidhar operated as `former or survivor’. The wife of Mr. Subramanian, who is nominee
in the account comes to your branch and informs you that Mr. Subramanian has expired a
month back. She also hands over the death certificate and requests for payment of the balance.
a the payment to the nominee will be made on proper identification as she is also having the
death certificate.
b the payment will be made to the wife of deceased being legal heir of the former.
c the payment will not be made as with the death of the former, nomination has been
cancelled.
d the payment will not be made as with the death of the former, survivor gets the authority to
operate the account and nominee comes in to picture only when none of the account holders
is available
e any of the above
Ans: (d)
Que 3 Bank Universal Limited receives a letter of credit of $ 20000 in favour of M/s
Diamond Exports Pvt Ltd for exports to Germany. After verification of the genuineness of the
credit, it is forwarded to the beneficiary through registered letter. Unfortunately, due to postal
strike, by the time the letter of credit is delivered, its validity period expires. The exporter
threatens legal action against the bank:
a bank is liable as bank has not handed over the credit in time to the beneficiary
b postal department is liable for the loss and exporter has to take up the matter with the postal
department
c bank is not liable as it does not assume any liability for the consequences arising out of
delay in transit due to actions beyond its control
d bank could persuade the opening bank to extend the validity date so that it is not put to loss
e any of the above
Ans: (c)
Que 4 Your branch has received a garnishee order in the name of your customer having
saving bank account, with following transactions. Which among these is not subject matter of the
garnishee order:
a an advice ready for despatch to another branch after debit to the account in payment of
cheque
b an advice received for a cheque which was sent in collection, from another branch but not
credited to the account so far
c a cheque sent in clearing, the amount of which has been credited to the account
d an amount of Rs.4000 relating to his wife’s account credited by mistake to the account of
the customer
e all the above
Ans: (c)
Que 5 Your branch opens a fixed deposit of Rs.50000 in the joint name of Mr. Anil Kumar
and Mr. Suhail Kumar payable to either or survivor. They also nominate Miss Konica a minor
daughter of Mr. Suhail Kumar with the provision that the payment can be claimed by Mrs.
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Suhail Kumar on behalf of the minor. Unfortunately, Mr. Suhail Kumar expired and
subsequently Mr. Anil Kumar decides to change the nomination from Miss Konica to his own
son. To this, Mrs. Suhail Kumar objects and asks your branch not to accept the instruction of
Mr. Anil Kumar:
a bank has no option to ignore the request from Mr. Anil Kumar as, being survivor all rights
relating to deposit are vested with him.
b bank can request Mr. Anil Kumar to decide the case in consultation with the existing
nominee
c bank has to accept the request from Mrs. Suhail Kumar, as she was the nominee coupled
with interest
d bank will ask them to go to a court of law for decision and would implement the decision of
the court
e b and c above
Ans: (a)
Que 6 Sh. Amrit Lal opens a term deposit account with Bank of Bengal and nominates his
niece Ms Aruna Pande. Unfortunately, he expires in an accident but Ms Aruna Pande does not
turn up despite a notice from the bank. Meantime, the legal heirs of Mr. Amrit Lal i.e. his two
sons, visit the bank and request for making payment of the deposit. They also present a probate
from court of law in which they are executors of the will of the deceased:
a a the payment of the balance in the account will be made by the bank to Ms Aruna Pande
only
b the payment of the balance would be made to the legal heirs in terms of probate
c the payment will be made in equal proportion to the legal heirs and the nominee
d the bank will advise the legal heirs to bring specific order from the court in the light of
nomination
e none of the above
Ans: (a)
Que 7 The liability of a minor co-parcener in an HUF, for the acts of a Karta is:
a unlimited
b nil
c to the extent of his share in the family property
d 50% of the loss as per his share
e e none of the above
Ans: (c)
Que 8 Mr. D Singh and Mr. K Singh are maintaining a current account in `former and
survivor’ operations. Mr. K Singh (illiterate) issues a notice to the bank that the operations in the
account should be stopped as there is some dispute between both of them. He also mentions that
money in the account belongs to him but for operational convenience, the power to operate the
account was given in favour of D Singh. What would you do with the cheque (signed by Mr. D
Singh for Rs.670 favouring LIC of India) which has been presented through clearing, for
payment from this account?
a the cheque is of small amount and shall be paid.
b the cheque is in favour of LIC of India and shall be paid
c cheque will be returned due to receipt of information about dispute
d cheque will be paid as K Singh’s instruction cannot be accepted so long as Mr. D Singh is
alive
e Any of the above
Ans: (d)
Que 9 An attachment order is received from Income Tax Officer for attaching funds lying in
saving bank account of a person. In case, the bank fails to execute this order u/s 226 (3) of Income
Tax Act:
a Branch Manager can be arrested.
b Branch Manager can be fined upto Rs. 5000 and sentenced upto one year
c The banker shall be treated as a assessee in default
d Amount can be recovered from the bank, with penalty.
e c and d.
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Ans: (e)
Que10 Your branch is having a fixed deposit receipt of Rs.2 lac in the name of B, which is to
mature after one year. B defaults in payment of loan. The right of set-off can be exercised for a
loan against fixed deposit receipt:
a. On maturity
b. Even before maturity
c. by giving 30 days notice, it can be exercised
d. any of the above
Ans: (a)
Que11 Your customer Mr. Veerapan issues a cheque payable to `self or order’, for Rs.55000.
It is presented for payment by his peon Mr. Prakash. The cheque is endorsed by Mr. Veerapan in
blank:
a cheque should not be paid as it is drawn in favour of self
b cheque should not be paid as it is not drawn properly
c cheque can be paid as it is properly drawn and endorsed in blank the payment of which can
be obtained by the bearer
d cheques payable to self or order cannot be endorsed in blank
e none of the above
Ans: (c)
Que12 The bank received garnishee order on saving bank account of Mr. Ram at 10.50 a.m.,
who deposits Rs. 5000 at 12.10 p.m. i.e. after service of the order:
a The order would apply to this amount also.
b The bank will refuse to accept the deposit
c The order will not apply to this amount
d order will apply if court is informed about this
e order will apply if court declares so.
Ans: (c)
Que13 For the purpose of change in classification of an advances from standard to sub-
standard category due to non-payment of the loan, in case of crop based agriculture advances,
which of the following is taken:
a two harvest seasons
b two crop seasons
c one crop season
d two crop seasons for short duration crop and one crop season for long duration crop
e two harvest seasons with maximum of one year.
Ans: (d)
Que14 An exporter has received repayment of certain bills he had sent for collection and now
wants to retain the same in foreign currency:
a he can open current account as EEFC account
b he can open fixed deposit account as EEFC account
c he can open saving bank account as EEFC account
d he can open current account as well as Fixed deposit upto 1million USD for 1 yr.
e he can open only a and c
Ans: (d)
Que15 Your branch maintains a current account of a partnership firm Sandhu & Company
with Sandeep Sandhu and Kuldeep Sidhu as partners. Master Sandesh Sandhu (son of Mr.
Sandeep Sandhu) is also admitted to the firm for benefits. In order to meet the financial
requirements of the firm, Mr. Sandhu approaches the bank to sanction a demand loan against an
FDR in the name of Master Sandesh u/g of Mr. Sandeep Sandhu:
a the loan is needed by the firm, in which the minor is a partner, hence can be sanctioned
b the loan is being raised by the father of the minor, due to which it can be sanctioned
c the loan can be sanctioned by keeping the FDR as security
d the loan can be sanctioned if the father declares that it is for the benefit of the minor.
85
e Loan cannot be sanctioned
Ans: (e)
Que16 Corporate Bank had granted a term loan of Rs.20 lac to M/s Kawal Society Limited
which is not being repaid. The company is not signing the balance confirmation letter despite the
fact that it has been sent three times. Bank sends a legal notice for repayment of the loan which
shows balance of Rs.27 lac now. Company confronts bank’s claim of Rs.27 lac by way of a letter
stating that they have already paid Rs.5 lac due to which the amount should be Rs.15 lac only:
a the letter will serve the purpose of acknowledgement letter and extend the limitation period
for the entire amount
b the letter could extend the limitation period if it were duly stamped
c the letter is not an acknowledgement it is only a denial of bank’s claim
d any of the above
e none of the above
Ans (a)
Que17 Your branch has sanctioned working capital limit of Rs.9 lac to a partnership firm
which submits stock report with stocks worth Rs.28 lac and sundry creditors of Rs.18 lac. The
margin in the account is only 20% , the unit being an SME unit. What is the maximum amount
up to which the limit can be allowed to be availed by the party?
a Rs.6 lac
b Rs.8 lac
c Rs. 9 lac
d Rs.4.60 lac
e none of the above
Ans (b)
Que18 Any old bank has to fulfill the following terms and conditions to be included in the
second schedule of RBI Act 1934:
a It should be either a State Co-op Bank or a Company defined under Indian Companies Act
1956 or an institution appointed by Central Govt. for undertaking banking operations.
b Jointly its paid up capital and reserves should not be less than 5 lac.
c It has to satisfy RBI that none of its functions, are against depositors interest.
d All of the above.
e only c
Ans (d)
Que19 No Collateral Security is required from Small and Micro Enterprises for credit
facilities upto:
a Rs.20 lac
b Rs.15 lac
c Rs.10 lac
d Rs.5 lac
e Rs.2 lac
Ans (d)
Que20 A person called Himmat Singh has been maintaining a saving bank account with your
branch for the last 10 years where no nomination has been opted. Now he wants to make
nomination in favour of his minor son.
a Bank will accept the request for nomination
b Bank will not accept the request for nomination in favour of minor since a long period has
already passed when account was opened
c Nomination in favour of minor can be allowed only when a person is also appointed who
can receive the payment on behalf of minor if the account holder dies during his minority
d Both (c) and (b) above
e none of the above
Ans (c)
86
Que21 Universal Bank has been maintaining a joint fixed deposit account in the name of Mr.
Asha Singh and Mr. Manjeet Singh. After sudden death of the Mr. Asha Singh in a road
accident, Mr. Manjeet Singh approaches the bank for payment of the fixed deposit before
maturity, which the bank makes after obtaining an indemnity bond. The legal heirs dispute the
payment and insist on 50% payment:
a the claim of legal heirs is not tenable as after death of one of the joint holders, the balance
becomes payable to the survivor
b the bank has made the payment to the survivor negligently, as in case of death of one of the
holders, the deposit receipt cannot be cancelled
c the bank has acted negligently as the payment was required to be made to the legal heirs of
the deceased holder and the survivor jointly
d a and c
e e any of the above
Ans (c)
Que22 A business firm has been sanctioned working capital limits of Rs.6 lac at 25% margin
by the bank and book debt limit of Rs.4 lac at 50% margin. What will be total margin
requirement to avail the limit fully:
a 4 lac
b 5 lac
c 6 lac
d 6.5 lac
e 8 lac
Ans (c)
Que23 What is the maximum time available to a customer for lodging complaint to
Ombudsman:
a 1 month from date of complaint made to bank and no reply received
b 1 month from date of complaint, reply received but customer not satisfied
c 1 year from date of receipt of reply from the bank
d 1 year from date of lodgement of complaint with the bank + 1 month, where reply has not
been received.
e c or d
Ans (e)
Que24 An FD payable to either or survivor for Rs. 25000 is in the names of A and B. The
receipt is lost and a duplicate is issued on the basis of indemnity. Later on A comes with original
on date of maturity for payment.
a The bank will pay to A because it is payable to either or survivor
b The bank will not pay because a duplicate has been issued making the original as useless.
Hence the consent of B is required
c The court will be informed.
d any of the above at the discretion of the bank
e None of the above
Ans (b)
Que25 Ravi your customer of a saving bank account is approached by a person called Ram to
give an introduction to enable him to open a saving bank account with your branch to which he
agrees. Subsequently it is proved that Ravi gave introduction though he really did not know
much about Ram. In such situation:
a Bank can hold Ravi responsible as he carelessly gave the introduction
b Bank cannot hold Ravi responsible as Ravi has not violated introduction rules
c Bank can recover 50% of amount from Ravi
d any of the above
e None of the above
Ans (b)
Que26 Intt. in SF account is calculated on:

a a: Minimum balance during the month
b b: Balance as on 30th of the month
87
c c: Minimum balance between 10th and last day of the month
d d balance as on 10th and last day of the month
e d: None of the above
Ans (c)
Que27 A gives a mandate in favour of B to operate his account and later on a power of
attorney is executed by A in favour his wife. In the case:
a Mandate will would remain effective along with power of attorney
b Mandate would become ineffective, if revoked specifically
c Court intervention should be had
d Only power of attorney will be operative
e a and b.
Ans (e)
Que28 In a public limited company, maximum and minimum no. of shareholders is:
a 50 and 10
b No limit and 7
c 100 and 2
d 1000 and 100
e any number at the discretion of the company
Ans (b)
Que29 A company is availing credit facilities from your branch. Which among these credit
facilities does not require registration of charges u/s 125 of Companies Act 1956 for :
a Packing Credit for shipment of goods
b Hypothecation of stocks
c Pledge of stock
d Term loan for machinery
e bills discounting
Ans (c)
Que30 For door-step banking by banks, RBI has issued directives under which of the
following Acts:
a RBI Act
b Negotiable Instrument Act
c Banking Regulation Act
d Shops and Establishment Act
e Industrial Disputes Act
Ans (c)
Que31 In a partnership firm, the no. of partners cannot go beyond 10 or 20 depending upon
the nature of business. The provision regarding this maximum no. of partners is mentioned in:
a Indian Partnership Act
b Indian Contract Act
c Indian Companies Act
d Banking Regulation Act
e None of the above.
Ans (c)
Que32 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:
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 widow being guardian of eldest male member to be called
Karta
d account can be operated by any of the two sons
Ans (c)
88
Que33 Which of the following documents in case of a company, is called Charter of the company:
a Resolution from Board of Directors or Shareholders
b Memorandum of Association
c Articles of Association
d Certificate of Incorporation
e Certificate of Commencement of Business
Ans (b)
Que34 A bank receives a cheque for collection from its customer. Bank gives credit before
collection of the cheque. It also allows the customer to withdraw the amount. In such case, the:
a a: Bank is holder
b b: Bank is holder for value
c c: Bank becomes holder in due course
d d representative of the drawer
e e: None of the above
Ans (b)
Que35 Not negotiable crossing means:

a a: The collecting banker should confirm about the genuineness of holder before collection
of his cheques
b b: The not negotiable cheque cannot be further negotiated.
c c: Collection of not negotiable cheque will not get protection under NI Act
d d: A transferee cannot get better title than a transferor and he also cannot transfer a better
title than he possesses.
Ans (d)
Que36 A bill is payable to or to order of a non-trading firm. Endorsement can be made by:
a a: Any partner of the firm
b b: All the partners
c c: Authorised partner through power of attorney
d d: Any two partners
Ans (b)
Que 37 The term àllonge’ refers to:

a a: A plain sheet appended to a negotiable instrument for the purpose of making endorsement
thereon
b b: Conditional endorsement of a negotiable instrument
c c: A plain sheet appended to a will
d d enclosures to the balance sheet of the bank
Ans (a)
Que 38 A customer of Delhi branch of the bank having Multi-city cheque book under the
centralized business solution (CBS) demands payment of a cheque at Lucknow branch of the bank and
there is connectivity between these two branches:
a it is not a proper demand
b demand is in order. Lucknow branch should pay. Bank would get proper discharge.
c to demand money all bank branches are considered one unit whether the cheque is normal
or multi-city.
d d demand is in order, but Lucknow branch cannot get valid discharge as contract is with
Delhi branch
e e b and c
Que 39 A cheque is presented for payment through clearing house but due to certain reasons, it
is returned unpaid. The returning memo is enclosed to comply with:
a a: Negotiable Instruments Act
b b: RBI Act
c c: Banking Regulations Act
89
d d: It is a practice
e e RBI clearing House rules
Que 40 The provision for making the payment of amount mentioned in words in a cheque is
described u/s...of NI Act:
a 18
b 19
c 20
d 21
e 31
Que 41 A bearer cheque is issued by one Mr. Ashok in favour of Aman, but he forgets to hand
over the cheque to Aman. Aman however, picks up the cheque in his absence from his table. Whether
the negotiation has taken place ?
a a: No, endorsement is also needed
b b: No, delivery is also needed
c c: No, endorsement and delivery both required
d d yes, the cheque is drawn in his favour
Que42 An export client M/s Shanbeg Exports of your branch receives an export order for export of
handicraft items to US under a letter of credit of $ 30000. It is stated that your bank can issue another
credit in favour of local supplier/manufacturer from whom the exporter is to procure the material.
Under which of the following categories, such letter of credit can be classified:
a a red clause letter of credit
b b green clause letter of credit
c c stand by letter of credit
d d transferable letter of credit
e e back to back letter of credit
Que 43 A bank can purchase NPA from another bank, if in the books of selling bank, the
account was NPA for ____:
a a 2 years
b b 3 years
c c 4 years
d d 5 years
e e 7 years
Que 44 If NPA is purchased from X bank by Y Bank and Y bank wants to sell it to Z bank, what
is the minimum period for which the account should remain with bank Y:
a a: 6 months
b b: 12 months
c c: 15 months
d d 18 months
e e: 36 months
Que 45 What is the risk weightage for capital adequacy purpose, in case of credit card:
a a: 25%
b b: 50%
c c: 100%
d d: 125%
e e: 150%
Que 46 In case of SJSRY, what is the minimum no. of members of women group under
DWCUA:
a a: 25
b b: 20
c c: 15
d d 12
e e: 10
Que 47 Under the Nayak Committee recommendations, the quantum of working capital limits
from the bank is minimum ____ of the projected annual sales:
a 5%
b 15%
90
c 20%
d 25%
e 3%
Que 48 A bearer cheque of Rs. 3 lac has been presented by Mr. Sham Kumar, the payees of a
cheque drawn on your branch. He being new to the bank has shown inability to give identification:
a a in case of bearer cheque, no identification is needed irrespective of the amount of the
cheques
b b Identification is required to safe guard the interest of the bank
c c Identification is essential for all instruments for getting protection
d d Identification would not be required if presented with pass book
Que 49 Mr. Dharmvir has given a power of attorney to Mr. Ashok Kumar for operation of
accounts and dealing with negotiable instruments drawn in favour of Mr. Dharmvir. What will be the
correct endorsement by Mr. Ashok Kumar among the following:
a a Dharmvir sd/ by Ashok Kumar
b b Ashok Kumar sd/ Ashok Kumar
c c For Dharmvir sd/ Dharmvir by Ashok Kumar
d d For Dharmvir sd/ by Ashok Kumar (attorney for Dharmvir)
e e For Ashok Kumar sd/ by Ashok Kumar
Que 50 Mr. Jugraj Lal comes to open a saving bank account with your branch. He also has a
cheque of Rs.500, which he would deposit in the account when account is opened. Which among the
following can be accepted as first deposit in the account?
a cash only
b Cheque
c bank draft
d Banker’s cheque
e any of the above
Que 51 What is the target (quota) for SC/ST and other backward classes under PMRY:
a a 40%, 10%
b b 30%, 20%
c c 22.5%, 27%
d d 27%, 22.5%
e e 20%, 30%
Que 52 In case of a partnership firm, the managing partner execute the documents on behalf of
firm. If you are branch auditor, what would you suggest to the branch staff ?
a a: All the partners sign all documents
b b: All partners sign in both the capacities i.e. jointly and severally
c c partners sign in their individual capacity
d d: Both the above
Que 53 For Term loan the period of limitation is three years from:
a a: Date of documents
b b: Date of default
c c: Date of sanction
d d: Due date of each instalment
e e date of default of each instalment
Que 54 In case the debt is acknowledged after the expiry of limitation period, the limitation
period will be:
a a: Extended by another three years from this date
b b: Extended for another three years from date of expiry
c c extended for 3 years
d d: Not be extended
Que 55 In term loans, NPA is the account when:

a a: Principal has remained past due for 3 months wef March 31, 2004
b b: Interest, principal or other charges, remain unpaid for a period more than 90 days wef
March 31, 2004
91
c c Interest and principal have fallen due and paid after more than 90 days
d d: any of the above which ever is earlier
Que 56 What is the extent up to which the credit is allowed to women as part of the overall
credit being extended by the banks:
a a 3% of their priority sector credit
b b 5% of their total credit
c c 5% of their net bank credit
d d 5% of their priority sector credit
e e 5% of their incremental deposits
Que 57 In case of advances covered under ECGC or DICGC guarantee, the provision under
provisioning guidelines is to be made for the outstanding balance:
a a: After reducing the amount of cover available from the outstanding balance
b b: Without taking into account the above said cover
c c reducing the amount if actually recovered
d d: Any of the above
Que 58 In the group approach system of lending, the following norms have been prescribed by
RBI relating to ceiling on exposure of banks:
a a: 15% of capital fund for individual borrower
b b: 40% of capital fund for borrowing group
c c 5% for infrastructure projects
d d: a and b above
e e: a to c above
Que 59 What is the %age of loan accounts that is to be routed through rural or semi urban
branches in DRI advances:
a a 2/3rd
b b 50%
c c 40%
d d 1/3rd
e e 30%
Que 60 What is the reservation for women in SGSY scheme:

a a: 60%
b b: 50%
c c: 40%
d d 30%
e e: 25%
Que 61 There are certain financial instruments whose prices are derived from the price of the
underlying currency or interest rate or stocks etc. These are known as:
a Derivatives
b Securitisation
c Leasing
d Factoring
e Venture Capital Funding
Que 62 The concepts of Monetary Aggregates and Liquidity aggregates such as M1, M2, M3
and L1, L2 and L3 have been revised on the recommendations of which of the following committees:
a a Narasimham Committee
b b Rangarajan Committee
c c Raja Chelliah Committee
d d Y V Reddy Committee
e e L C Gupta Committee
Que 63 A process, through which, a member owned organisation becomes a shareholder-owned

company, is called:
a a Demutulisation
b b Dematerialisation
c c Factoring
d d Derivatives
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e e Securitisation
Que 64 After the conversion of hypothecation into pledge the bank will have the same right as
that of:
a a: Pledgee
b b: Mortgagee
c c: Pledger
d d hypothecatee
e e: Hypothecator
Que 65 On CRR the banks get interest ___ on ___:

a a: bank rate, entire balance
b b: 0%
c c: bank rate, eligible balance
d d 3.5%, entire balance
e e: discretion of RBI.
Que 66 Charge created by a borrower in favour of a secured creditor on movable assets without
possession, is known as per provisions of ___ Act:
a a: Lien, Indian Contract Act
b b: Assignment, SARFAESI Act
c c: Mortgage, Transfer of Property Act
d d: Hypothecation, Indian Contract Act
Que 67 What is the funding ratio for SGSY scheme within state and central govt.:
a a: 25:75
b b: 33:67
c c: 50:50
d d 75:25
e e: 80:20
Que 68 Which two currencies have been included by RBI in its REER:
a a: Japanese Yen and Chinese Yuan
b b: Chinese Yuan and Singapore Dollar
c c Singapore Dollar & Australian Dollar
d d: Australian Dollar & Canadian Dollar
e e: none of the above
Que 69 Which among the following is limited to 150% of threshold yield under the Rashtriya
Krishi Bima Yojna?
a a the amount of loan to be covered by the insurance policy
b b the amount of premium on the insurance policy
c c the amount of the insurance
d d the amount of claim under the insurance policy
e e any of the above, whichever is higher
Que 70 What is the amount of claim which will be paid immediately by the Credit Guarantee
Fund to a bank if the amount of loan in default is Rs.16 lac on the eligible date :
a a Rs.16 lac
b b Rs.12 lac
c c Rs.9 lac
d d Rs.3 lac e none of the above
e
Que 71 The funding in the ratio of 75:25 is done by Central and State Govt. for which of the
following Govt. sponsored schemes:
a a PMRY Scheme
b b SJSRY scheme
c c SGSY scheme
d d SLRS scheme
e e all the above
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Que 72 Your branch proposes to sanction loan to a retail trader for the commodities which are
not covered by the definition of essential commodities. What is the maximum amount of loan that
could be sanctioned to the borrower:
a a Rs.3 lac
b b Rs. 5 lac
c c Rs.10 lac
d d Rs. 20 lac
e e no ceiling
Que 73 A letter of credit is silent about the currency in which the insurance is to be obtained. In
which of the following will it be obtained?
a a Indian rupees
b b Euro
c c US Dollar
d d Pound
e e currency of the letter of credit
Que 74 Which of the following confers on the trustees, the power to obtain loan:
a a: Trust deed
b b: Trust deed writer
c c: Beneficiary
d d resolution from the trustees
e e: Commissioner of Charity
Que 75 What is the amount of minimum paid up capital and capital adequacy ratio % for a new
private bank:
a a: Rs.100 cr, 15%
b b: Rs.200 cr, 15%
c c: Rs.200 cr, 12%
d d Rs.200 cr, 10%
e e: Rs.300 cr, 10%
Que 76 On which kind of the following deposits, the senior citizens can be allowed additional
interest as per RBI directives?
a a current deposits
b b saving bank deposits
c c term deposits
d d a to c all
e e b and c only
Que 77 How many review of the Annual Policy Statement (Credit Policy) are made by RBI and
when:
a a One, during October
b b two, during April and October
c c Three, during July / October / January
d d Four, during April, July, Oct & Jan
Que 78 The maximum level upto which SLR is maintainable is:

a a 25%
b b 30%
c c 35%
d d 40%
e e 45%
Que 79 As per the loan delivery system recommended by Jilani Committee, the borrowers are
required to split their fund based working capital limits or MPBF into:
a a term loan and bills
b b demand loan and cash credit
c c working capital demand loan and cash credit
d d cash credit and bills
e e term loan and cash credit
Que 80 Prompt corrective action is initiated by RBI in respect of which of the following:
a a when capital adequacy is below %
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b b when net NPAs are above 10%
c c when return on assets falls below 0.25%
d d a to c all
e e a and b
Que 81 What is the level of net NPA of a bank when on satisfying other conditions, the bank can
declare dividend:
a a less than 9%
b b less than 8%
c c less than 7%
d d less than 5%
e e less than 4%
Que 82 A cheque with amount in words written as rupees five thousand is presented but the
amount in figures is not stated. The payee insists on immediate payment:
a a cheque can be paid after consulting the drawer only
b b cheque can be paid after obtaining indemnity from the payee and the drawer.
c c cheque can be paid for amount in words u/s 18 of Negotiable Instrument Act
d d cheque being Inchoate Instrument cannot be paid
Que 83 A bearer cheque has been drawn in favour of Mrs. Durani, who wants to negotiate it
further. How she will endorse the cheque:
a Durani (Mrs.)
b Mrs. Durani
c sd/ ( Mrs. Durani)
d Any of above
e none of the above
Que 84 Which among the following is the most appropriate crossing to consider it a `special
crossing’?
a a `Pay X through his bank’ within two transverse lines
b b Payee’s account through his bank without transverse lines
c c Name of the bank without transverse lines
d d Name of the bank within transverse lines
e e c and d
Que 85 Which among the following is provided u/s 22 of Negotiable Instrument Act in the
context of a Bill of Exchange:
a a drawee to be permitted 48 hours for acceptance of the bill
b b drawee can accept the bill by signing on the face of the bill
c c presentation of the bill should be at the business place of the drawee
d d drawee can be allowed 3 days of grace for making payment
e e drawee can make the payment on next preceding business day if the payment falls due on
a holiday
Que 86 A term loan is sanctioned for:

a a: Working capital purposes
b b: Investment in current assets
c c: Investment in fixed assets
d d both for fixed assets and current assets
e e: any of the above
Que 87 What is the maximum amount of donation that a profit making bank make during a year:
a a: 5% of its profits after tax
b b: 4% of its audits profits
c c: 2% of the profits of the previous year
d d: 1% of the profits of the previous year
e e maximum Rs.5 lac
A borrowing firm submits to the Commercial Bank, the balance sheet with following
particulars:
Capital and Reserves 24 lac
Term loans 16 lac
Trade Creditors 12 lac
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Expenses payable 8 lac
Bank cash credit 20 lac
Fixed assets 24 lac
Security deposit for Electricity 4 lac
Preliminary expenses 2 lac
Stocks 30lac
Bills receivable/book debts 14 lac
Cash and bank balances 6 lac
Net profits 6 lac
Sales 120 lac
On the basis of above information, please work the following ratio?
Que 88 Current ratio would be:

a a 1.10:1 b 1.15:1
b
c c 1.20:1 d 1.25:1
d
e e 1.33:1
Que 89 What will be the quick ratio:

a a 0.85:1 b 0.75:1
b
c c 0.50:1 d 0.40:1
d
e e 0.30:1
Que 90 The debt equity ratio would be:

a a 2.1:1 b 1.76:1
b
c c 1.34:1 d 1.10:1
d
e e 0.73:1
Que 91 Debtor’s velocity ratio would be:

a a 1.4 months b 1.6 months
b
c c 1.8 months d 2.0 months
d
e e 2.2 months
Que 92 What will be stock turnover ratio:

a a 3 times b 4 times
b
c c 5 times d 5.5 times
d
e e 6 times
Que 93 Under Uniform Practices for Documentary Credit, if quantity is not specified to be
exceeded or reduced, it should not exceed the tolerance level of:
a a 1% b 2%
b
c c 3% d 5%
d
e e 10%
Que94 In case interest rates rise during a year, the current market value of existing Govt. securities
generally:
a a remain constant
b b increases
c c falls
d d moves up after falling initially
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Que95 Which of the following is not a term which is used in the context of Asset Liability
Management ?
a a Maturity Buckets
b b Capital Fund
c c Residual maturity
d d Interest rate risk
Que96 Which agency processes the loan applications under the scheme Swarn Jayanti Shehri
Rozgar Yojna:
a DRDA
b Distt Industry Centre
c KVIC
d Urban local body
e Reserve Bank
Que97 Under which of the following categories, a contract of insurance is categorised?

a a contract of agency
b b contract of guarantee
c c contract of indemnity
d d contract of guarantee and indemnity
e e an actionable claim
Que98 Under the provisions of law, what is the maximum no. of companies, on the Board of
Directors of which, an individual can become a Director:
a 5
b 10
c 15
d 20
e 25
Que99 As per RBI directives, what amount a bank is expected to transfer to statutory reserve fund :
a a 20% of profits before tax
b b 25% of the profits
c c 20% of profits before declaration of dividend
d d 25% of profits before declaration and dividend and tax
e e 25% of profits before dividend declaration
Que100 A cheque of Rs.15000 issued in favour of M/s Manish Kumar & Sons is deposited by the
proprietor of the firm Mr. Manish Kumar in his personal saving bank account, which the collecting
bank refuses to collect, to guard itself against conversion, while Manish Kumar insists on that:
a a the stand taken by the bank is correct since the cheque belonging to the firm cannot be
collected for the account of individual
b b the stand taken by Manish Kumar is wrong as it is discretion of the bank to decide
whether to collect or not
c c stand taken by the bank is incorrect since in the case of proprietorship, the account of the
firm and that of the individual are considered in the same name and same capacity
d d cheque can be collected only if Manish Kumar provides an indemnity
Answers : Test No.1

01 e 02 d 03 c 04 c 05 a 06 a 07 c 08 d 09 e 10 a 11 c 12 c 13 d 14 a 15 e 16 a 17 b 18 d 19
d 20 c 21 c 22 c 23 e 24 b 25 b 26 c 27 e 28 b 29 c 30 c 31 c 32 c 33 b 34 b 35 d 36 b 37 a 38 b 39 e 40
a 41 b 42 e 43 a 44 c 45 d 46 e 47 c 48 a 49 d 50 e 51 c 52 b 53 d 54 d 55 b 56 c 57 a 58 d 59 a 60 c 61
a 62 d 63 a 64 a 65 b 66 e 67 a 68 b 69 c 70 c 71 b 72 c 73 e 74 a 75 e 76 c 77 c 78 d 79 c 80 d 81 c 82
d 83 e 84 e 85 d 86 c 87 d 88 d 89 c 90 e 91 a 92 b 93 d 94 c 95 b 96 d 97 c 98 c 99 e 100 c
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Mock Test 2
1 International Bank opened a saving bank account in the name of Mr. R Singh and at the time of
opening of the account handed over to him the copy of rules and regulations for conducting the account
which also provided that the cheque book should be kept under lock and key and for loss if any arising
from not complying with requirement, bank will not be responsible. The customer kept the cheque
book in drawer and one of his office colleagues took off one cheque leave and by forging the signatures
of Mr. R Singh withdrew the money from the bank. The customer claims the refund of the money:
a the bank is not under obligation to refund the money as the loss has been caused due to negligence on
the part of the customer
b the loss would be shared equally by the customer and bank as both of them have been at fault.
c bank would advise the customer to recover the money from the forger who is office colleague of the
customer
d bank is liable for making payment of a forged cheque and will have to restore the amount to the credit
of the account
e any of the above.
2 Your branch maintains a saving bank account of Mr. Dharma, an illiterate person who wants to go
abroad for some time. He wants to authorise his wife to operate the account. Which among the
following will be most convenient/easy way to achieve the objective:
a power of attorney duly registered with the Registrar of Assurances
b adding the name of wife to the account and making the operations either or survivor
c authorising the another person through mandate (a simple letter)
d making his wife nominee in the account
e any of the above
3 Mr. Samendu has been maintaining a current account with Corporate Bank for the last 3 years with
substantial balance of Rs.3 lac. Bank gets a confirmed report that he has filed an insolvency petition.
Bank also receives a cheque of Rs.1.50 lac for payment:
a cheque will be returned by the bank as payment will not be a payment in due course
b cheque will be returned as property is now vested with official assignee
c cheque will be returned under such doubtful circumstances
d cheques will be paid and operations in the account will be permitted till the competent court declares
him insolvent
e none of the above
4 A partnership firm having its current account with your branch withdraws cash in the morning
amounting to Rs.45000. At noon it withdraws more amount of Rs.27000. In the evening yet another
withdrawal of Rs.28000 is made by the firm. What is the status of application of Banking Cash
Transaction Tax:
a bank is required to deduct the tax as the total amount of withdrawal on a single day is Rs.1 lac
b bank is not required to deduct because the amount is not more than Rs.1 lac
c bank is not liable to deduct because the amount of single withdrawl is less than Rs.1 lac
d bank is required to deduct as the amount of each withdrawal is above Rs.25000
e none of the above
5 Your branch has granted a demand loan of Rs.60000 to Sh. Banwari Lal against his term deposit of
Rs.1 lac. The branch has received a court attachment order for Rs.50000 relating to this deposit. Which
of the following action should be taken by the bank:
a since the deposit is already under lien of the bank, bank should ignore the order
b since there is adequate balance in the FDR account to meet the liability of the loan, the bank can
follow the instructions in the attachment order after recovery of its own dues
c bank should seek specific confirmation from court before adjustment of its dues
d the branch will meet the attachment order liability on date of maturity of the FDR
e bank’s liability is of contingent nature due to which the liability under attachment order will be met
first.
6 Sh. Des Raj a blind persons approaches Meerut branch of Commercial Bank for opening a current
account as he is engaged as commission agent in fruit business. The bank however refuses to open the
current account giving the reason that such accounts are not permitted in the light of practical
difficulties involved in operation of the account:
a Refusal of the bank is not justified as a blind person is competent to contract and can also open
current account
b Refusal of the bank is justifiable in the light of practical difficulties.
c Refusal of the bank is justified in the light of possible loss which the customer may incur
d b and c
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e only c
07 A company is having its current account with 3 branches of your bank and on a single days makes
cash withdrawals of Rs.40000 from one branch, Rs.35000 from the 2nd branch and Rs.25000 from the
3rd branch. What is the status of application of Banking Cash Transaction Tax:
a bank is required to deduct the tax as the total amount of withdrawal on a single day is Rs.1 lac
b bank is not required to deduct because the amount is not more than Rs.1 lac
c bank is not liable to deduct because the amount of single withdrawl is less than Rs.1 lac
d bank is required to deduct as the amount of each withdrawal is of Rs.25000 or above
e Bank is not required to deduct as the amount is less than Rs.1 lac for each branch and the amount
withdrawn from all branches is not to be aggregated
8 The exposure ceiling on individual borrowers under the group approach in Indian banks as per RBI
directives is restricted to:
a 12% of the capital fund
b 15% of the capital fund
c 18% of paid up capital
d 22.5% of paid up capital
e 15% of the paid up capital
9 The term ARC used in Narasimham Committee Report-II stands for:

a Asset restructuring corporate
b Asset re-location company
c Asset reconstruction company
d Asset redeployment corporate
e none of the above
10 Which of the following types of operations modes are permitted under the Senior Citizens Saving
Scheme 2004:
a generally single account
b joint mode with the spouse
c joint operation with any one
d a and b only
e a to c all
11 Mr. Akash Khanna is having his personal saving account with United Bank’s Chandigarh branch.
He is also the sole trustee of Khanna Charitable Trust and operates the account of the trust which is
also maintained with the bank. In connection with an important personal work he proposes to proceed
abroad for 6 months and seeks your guidance for smooth operations in the accounts:
a he can give mandate in favour of some of his friend or relative for operations in the accounts.
b he can execute a power of attorney in favour of a known person for operations in both the accounts
c he can give mandate or power of attorney for his personal account
d he cannot delegate the powers to any one in case of trust account and could leave some cheque leaves
properly signed for use in case of trust account
e c and d
12 What is the amount of balance in a deceased depositor’s account, where the bank, depending upon
the circumstances may ask for a legal representation such as succession certificate, letter of
administration, probate:
a in case of joint survivorship accounts, no requirement
b in case of nomination accounts, no requirement
c in case of accounts with no nomination or survivorship provision, discretion of the bank
d Banks cannot ask for such representations
e a to c
13 A borrower in your branch has created an equitable mortgage. The registration, under
Section 125, of such a charge with Registrar of Companies is:
a: Required to make it binding on liquidator
b: Not required being oral mortgage
c: Required sometimes when memorandum of deposit is submitted
d: a and c
e Never required
14 What is the maximum time limit for the banks to settle the claims in respect of a deceased
depositors and release payments to the survivors/nominees :
99
a 7 days
b 10 days
c 15 days
d 30 days
e no time limit
15 A partnership firm wants to open a Current Account with your branch, but it is not
registered with Registrar of Firms.
a Is the registration of a partnership firm essential ?
b: It is not essential as it is only optional
c: It depends on will of creditors of the firm
d: It depends on will of the bank
e c and d
16 RBI regulates the money market and SEBI regulates the capital market. Which segment is
regulated by IRDA, out of the following sector:
a telecom b insurance
c banking d software
e b and d
17 In foreign exchange transaction, which of the following is the basic buying rate:
a Bills buying rate
b TT buying rate
c Direct rate
d Indirect rate
e a and b
18 The cases of deceased depositors where the claims have been received and pending beyond
the stipulated period are required to be reported to which of the following:
a Board of Directors of the bank
b Ombudsman
c Reserve Bank of India
d Customer Service Committee of the Board
e All the above
19 Which of the following kinds of joint accounts cannot be categorized as an account opened
with survivorship clause:
a either or survivor
b anyone or survivor
c former or survivor
d letter or survivor
e none of the above
20 X opened an account with your branch under the Senior Citizens Saving Scheme 2004 for
3 years. He needs the funds to meet his medical expenses by raising a loan on the basis of pledge of the
deposit. What precautions would be taken by the bank:
a the loan cannot be sanctioned under the scheme
b the loan amount should not be more than 80% of the amount of original deposit
c the loan amount will be linked to present maturity value of the deposit
d the loan would be allowed after obtaining a written request supported by a estimate from
hospital
e none of the above
21 When a seller undertakes to make the goods available for export, at his factory, such
arrangement is called:
a Ex-works
b FOB
c CIF
d FOR on ship
e none of the above
22 Which among the following is not correct in connection with the Lok Adalats, which have
come into prominence in the recent past?
a proceedings before Lok Adalat are deemed to be judicial proceedings under Civil Procedure
Code
100
b Lok Adalat has power to summon and enforce attendance of witnesses
c Lok Adalat have the same powers which are vested in a civil court under the Code of Civil
Procedure.
d Lok Adalats can entertain pecuniary (financial) cases without any ceiling on the amount
e none of the above
23 International Bank Limited negotiated documents worth Euro 15000 against a without-
recourse irrevocable letter of credit issued by a bank in UK. When the documents were sent to the
opening bank in UK, these were returned with the reason that the bill of lading and the insurance
certificate attached to the documents are fake. Opening bank also refused to make the payment against
these documents, which are otherwise as per terms of the letter of credit. What is the position of
International Bank Limited?
a Bank has acted negligently by accepting fake documents due to which it cannot recover the
money from opening bank
b Bank has the option to recover the money from the seller who has tendered fake documents
c Bank can rightly claim the money from opening bank under UCPDC provisions since the
bank was to see the regularity of the documents and was not responsible for their being fake
d Bank will have to approach international court
e a and b above
24 For financing a pump set, which of the following standards will be taken into account?
a ISO 9001
b ISO 9002
c ISO 9004
d BIS
e BIS 2101
25 What is the age criteria for under Senior Citizen Saving Scheme 2004 for opening the
account:
a 55 years
b 65 years
c 60 years
d 55 years in case of those who are retiring voluntarily
e c and d
26 Liability of the guarantor in a contract of guarantee is:

a: Unlimited where it is not revoked
b: Irrespective of the liability of the principal debtor it does not continue
c: Co-extensive with that of the principal debtor
d: a and c
e None of the above
27 Because the bank’s right under general lien is an implied pledge, in case of default, the
bank, after giving a proper/reasonable notice to the borrower can:
a: Convert general lien into a particular lien
b: Sell the security under certain circumstances without filing a suit
c: Can surrender its right, if told by RBI
d: a and c
e None of the above
28 In case the pledgee fails to re-transfer the possession of the goods to the pledger on
repayment of loan, within a reasonable period and the goods are damaged, according to Section 161 of
Indian Contract Act:
a: Pledgee would be responsible for loss, if any
b: Pledger would be responsible, for loss, if any
c: Godown-keeper would be responsible
d: damage would be to the account of both of them equally
e None of the above
29 For a charge hypothecation, registration with Registrar of Companies u/s 125 of Indian
Companies Act:
a: Would be in bank’s interest
b: Registration not required as hypothecation is just like a pledge
c: Registration is compulsory because of floating charge
d: registration is compulsory because it is charge on actionable claims
101
e None of the above
30 Your branch receives a cheque of Rs.20000 drawn from SB account in favour of LIC of
India by your customer maintaining SB and Current Account. SB account has been showing balance of
Rs.15678 and the current account Rs.12940:
a cheque would not be passed as the account on which cheque is issued does not have
sufficient balance
b cheque would not be passed as bank cannot transfer the balance from one account to another
account even though there is instruction from the account holder
c cheque would be passed after speaking to the customer over phone
d cheque could be passed after transferring the balance from one account to another
e any of the above, according to the merit of the customer
31 What is the role of advising bank in case of a letter of credit:

a to forward to the seller and to negotiate documents
b to verify the genuineness of LC and forward it to the seller/beneficiary
c to give confirmation that payment would be made by it in case the issuing bank fails to make
the payment
d to allow preshipment credit if asked for by the beneficiary
e all the above
32 What will be due date for a bill dated 1.2.2004 payable 45 days after sight and the bills was
accepted on 6.2.2004:
a: 23.3.2004
b: 25.3.2004
c: 26.3.2004
d: 28.03.2004
e None of the above
33 For banks to enter into insurance business, among others, the NPA level should be:
a not more than 10%
b not more than 9%
c not more than 5%
d reasonable
e none of the above
34 The maximum period for which a certificate of deposit can be issued:

a 7 days
b 15 days
c 179 days
d not more than 12 months
e 3 years
35 Model Bank issued an FDR in the name of Mr. X and his wife W. Mrs W comes to the
bank and request for premature payment to meet the expenses on treatment of Mr. X who is admitted to
one hospital and cannot sign, because of fractured hands:
a the request of W will be considered on sympathetic consideration
b the request of W will be considered on production of certificate from the hospital to the
effect that Mr.X is admitted
c the request of W will be turned down altogether
d payment can be made after verifying the facts and after obtain thumb impression of Mr. X in
the hospital, witnessed by the attending Doctor
e none of the above
36 Corporate Bank has sanctioned a loan of Rs.5 lac for purchase of a car to a lawyer. Under
which of the following categories it will be classified:
a small business
b professional and self employed
c small scale service and business enterprise
d self employed
e non-priority sector advance
37 Production of oil seeds and pulses is connected with which of the following:
a green revolution
b yellow revolution
102
c blue revolution
d white revolution
e none of the above
38 A cheque has been presented through clearing house and bears special crossing of two
banks.:
a: Drawee bank will pay to the bank in whose favour special crossing appears first
b: Pay to either of the banks and payment shall be in due course
c: Return the cheque with the remarks crossed to two banks
d: a and b
e None of the above
39 A cheque has been endorsed in favour of Z with the condition that payment of the cheque
can be made to him only when he marries Y. In this case the drawee bank should ensure while making
payment that:
a: Z married Y
b: There is no need for bank to ensure marriage of Z to Y
c: Drawer that marriage has taken place
d: if cheque is presented for payment, bank shall pay the cheque
e b and d
40 Bank International Limited had granted a loan of Rs.65 lac to M/s Juary Fertilisers Ltd few
years back but due to problem with the industry, the account could not be conducted properly for few
months and has become sub-standard. Party wants to settle the account with the bank to make it legally
binding on both the parties without involving itself in a lengthy legal struggle. Bank is also agreeable
for their proposal:
a they can enter into a compromise settlement and get it approved from High Court of the
State
b they can go to a Lok Adalat and get the consent decree
c they can go to a notary public and give declarations
d they can approach a Lok Adalat of DRT for a consent decree
e any of the above
41 A cheque has been issued in favour of A or order. At his request the drawer converts the
order to bearer and puts his small initials to authenticate the cancellation:
a: The bank will make the payment as mandate is clear
b: The bank will not make payment as cancellation requires full signatures
c: The bank seek confirmation from ask the drawer whether it is his signatures
d: a and b
e c and d
42 While providing finance to a project, the term Net Present Value method represents which
of the following:
a to find out the present value of the investment made in the project
b a tool to understand as to what shall be the present value of the loan being given at the end
of a particular period.
c present value of the cash flows which the project would generate over a time period on the
basis of a discount factor
d present value of the cash outgo over the life time of the project so as to understand the actual
outlay
e the discount rate at which the present value of future cash flows becomes zero taking into
account the investment.
43 Which of the following method can be used to calculate the per capita income of a country:
a: Total family income / number of family members
b: National income / total population
c: Total income of various industries / total number of industrial workers
d: Total Govt. revenue / total population
e a and b
44 Which among the following aspects are taken into consideration by RBI for its Prompt
Corrective Action (PCA), while initiating any action under the scheme:
a capital to risk assets ratio
b non-performing advances
c return on assets
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d a and c above
e a to c above
45 Which among the following is the first bank to return capital to the Central Governnent:
a State Bank of India
b Punjab National Bank
c Oriental Bank of Commerce
d Canara Bank
e Corporation Bank
46 Project A has higher fixed cost than the project B. What will be true with regard to Break
even point of these project, other things being equal:
a project A has higher break-even and scope of better profits
b project A has higher break-even and scope of lower profits
c project B has higher break-even and scope of better profits
d project B has higher break-even and scope of lower profits
e Break even shall be equal based on the cash flows
47 Under which section of Banking Regulation Act 1949, every banking company has to
submit annual statement of all those accounts which are lying under in-operative category for the last
10 years (called unclaimed deposits) to RBI:
a: 27
b: 26
c: 19(2)
d: 15
e 12
48 A company has been formed to undertake the business of software development. This
objective of the company would be found in which of the following documents:
a Certificate of Incorporation
b Certificate of Commencement of Business
c Resolution from Board of Directors
d Articles of Association
e None of the above
49 When a banker is acting on the standing instructions of a customer, their relationship is of :

a: An employer and an employee
b: An owner and a servant
c: A trustee and beneficiary
d: A principal and an agent
e Agent and principal
50 Under which of the following methods of depreciation on fixed assets, the annual amount
of depreciation decreases:
a Written down value method
b Straight line method
c Annuity method
d Insurance policy method
e a and c above
51 An importer has imported from Australia (invoicing Aus Dollar) certain plant and
machinery the payment of which is to be made 2 months after. On the basis of prevailing situation the
home currency is expected to record depreciation compared to Aus Dollar. What should be importer
do:
a He must go for a swap of Aus Dollar with Rupee
b He must arbitrage in Aus Dollars
c He should book a forward contract and purchase Aus Dollar
d He should sell Aus Dollars immediately
e He should purchase Aus Dollars spot
52 The methodology that focuses on eliminating the defects and facilitating data driven
decision making:
a management by objectives
b customer relation management
c six sigma
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d strategic management
e Total quality management
53 A bank carries positive gap in its asset liability position i.e. rate sensitive assets are higher
than the rate sensitive liabilities. What would the impact of increase in interest rates:
a Net interest margin would decrease
b Net interest margin would increase
c Market value of the assets would increase
d Market value of the liabilities would increase
e There will be no impact.
54 Collection period of its sundry debtors has been increasing in respect of a firm but the
period available to it for payment to sundry creditors has been decreasing. This would lead to:
a increase in its working capital requirements
b decrease in its working capital needs
c no change in its working capital needs
d higher amount of interest payment
e No impact on any of the financial parameters
55 A process under which it is expected that a combined entity (combination of two or more)
would be able to exceed the individual earning of the entities being combined:
a six sigma
b total quality management
c synergy
d internal rate of return
e management by profiteering
56 The facility of remittance is not available to which of the following types foreign nationals
of non-Indian origin:
a Citizens of Australia & Canada
b Citizens of Nepal & Bhutan
c Citizens of Nepal and Bangladesh
d Citizens of Bhutan and Pakistan
e None of the above
57 A registered firm has certain advantages over the non-registered firms. Where is a
partnership firm registered:
a: Registrar of firms
b: Registrar of companies
c: Registrar of deeds
d: Sub-registrar estates
e a or d
58 A banker should not pay the cheques drawn by a customer who has been sentenced and
sent to jail for:
a: Rape
b: Criminal liability
c: Moral ground
d: Insolvency
e a and b
59 You are approached by a person for opening an account in the name of an executor of a
will. You require which of the following documents:
a: Registration certificate
b: Memorandum of association and articles of association,
c: Probate
d: letter of administration
60 What is a probate:
a: A will certified by a court for settlement of property of the deceased.
b: It is will of the deceased
c: The last will of a person certified by the legal heirs
d: a registered will of the deceased
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61 U/s 26 of Negotiable Instruments Act:
a: A minor can not draw promissory note or a cheque.
b: A minor who has been admitted to a partnership firm can draw a cheque .
c: A minor can draw, accept, endorse and negotiate bills of exchange, promissory note or
cheque binding all parties except himself.
d: a minor can be held liable for the bill of exchange he has accepted
62 A foreign national visiting India wants to open an NRO account during his visit:
a account can be opened
b account cannot be opened
c account can be opened with RBI permission only
d account can be opened for foreign currency transactions
e none of the above
63 Holder in due course is defined u/s....of NI Act

a: 10
b: 9
c: 18
d: 8
e 13
64 Mr. X and Y are having a joint account in which they have nominated Mr. A. On death of
Mr. X, Mr A approaches the bank for payment?
a being nominee, payment would be made to A
b Y being alive, payment would be made to Y as survivor
c Y being alive and payment would be made to nominee and Y jointly
d payment would be made to Y and legal heirs of X
e payment would be made as per succession certificate which has to be submitted
65 In which of the following currencies, an FCNR-B cannot be allowed to be opened:

a US $ and Euro
b Euro & Australian Dollar
c Canadian Dollar & Pound
d Japanese Yen and Euro
e Singapore Dollar and Dinar
66 Which of the following categories of persons can open an FCNR-B account:

a Overseas Company
b Overseas firm
c Overseas corporate body
d NRI of Indian nationality or origin
e c and d
67 A software that restricts the access to and from a network and is designed to protect from
outside intrusion is called:
a firewall technology
b network protection technique
c virus protection technology
d total protection technique
e morphing
68 The break-even point in terms of capacity utilization of a project in its 2nd and 3 year
would be 55% and 50% respectively while the actual level of operation is 52% and 54% respectively:
a there will be substantial profit
b it will incur loss
c there will be loss in the 2nd year and profit in the 3rd year
d there will be profit in the 2nd year and loss in the 3rd year
e there will be neither profit nor loss
69 In computer software, the term ‘Morphing’ refers to which of the following:

a animation technique in which one image is gradually turned into another
b data conversion technique by way of use of codes
c conversion of digital picture to analog images
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d a soft ware that saves a network from intrusion
e software that links one server to another
70 What is the amount of loan which can be extended against the security of a certificate of
deposit:
a 25%
b 50%
c 75%
d No loan can be allowed
e none of the above
71 Which among the following is not a condition for a case to be referred to Corporate Debt
Restructure forum:
a the aggregate exposure should not be more than Rs.10 cr
b there should be atleast two creditors
c the reference can be made by any creditor having 20% or more share in the exposure
d the reference can be for standard and sub-standard accounts
e none of the above
72 The receivables of various loans and obligations are put together and distributed amongst
investors, in which of the following:
a leasing
b factoring
c securitisation
d venture capital
e forfeiting
73 Popular Bank has issued a term deposit receipt in the name of Mr. A and B to be operated
as `former or survivor’. A approaches the bank for addition of name of Mr. X, his son and also
nominate Mr. Z his brother in law. He claims that the money belongs to him?
a addition of name would be allowed but not nomination
b nomination would be permitted but not addition of name
c addition of name and nomination would be permitted as request is from former
d without consent of B addition or nomination cannot be accepted
e none of the above
74 Which of the following categories of borrowers are not eligible for assistance under
KVIC’s margin money scheme?
a Partnership firm
b individuals
c cooperative societies
d trust registered with KVIC
e none of the above
75 Which of the following is not correct with regard to prevention of Money Laundering
provisions:
a it is acquiring, owning, possessing or transferring any proceeds of money of crime
b it is a process of converting money obtained illegally to appear to have originated legitimate
sources
c India has passed the Prevention of Money Laundering Act to identify and control the
transactions of money laundering
d Records relating to money laundering transactions are to be preserved by banks for 20 years
e Offences under money laundering are cognizable and non-bailable.
76 The minimum amount of a certificate of deposit can be:

a Rs.1 lac b Rs.3 lac
c Rs.5 lac d Rs.10 lac
e no minimum is prescribed
77 The holder of a negotiable instrument is holder in due course if:

a: He receives the instrument in good faith and without negligence
b: He receives the instrument for lawful consideration
c: He receives the instrument before its maturity
d: All the above
e none of the above
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78 If a promissory note is payable in instalments, the period of grace for payment will be
available:
a: Only once
b: On each instalment
c: Only on last instalment
d: no grace period available for promissory note
e None of the above
79 Under Gold Card scheme for exporters, based on credit worthiness of the card holder,
which of the following is not correct:
a banks could consider waiver of collateral security
b banks could consider exemption from ECGC guarantee cover
c requests for credit would be considered quickly maximum within 7 days
d in principal limits would be set up for 3 years
e provision for stand-by limit of 20% to meet urgent credit needs would be made.
80 Repayment of loans under Swarnjayati Shahri Rozgar Yojna should be made in:
a 2-3 years b 3-5 years
c 3-7 years d 5-7 years
e more than 6 years
81 Repayment under the Scheme for Liberation and Rehabilitation of Scavengers (SLRS) has
to be in a period of:
a 2-5 years b 3-5 years
c 3-7 years d 5-7 years
e more than 7 years
82 For which among the following the bank provides relief in interest rate to the borrower in
education loan?
a when he is from a very poor family
b when loan is sanctioned for a highly prospective education from job aspects
c when loan is repaid during the moratorium period
d when interest portion of the loan is repaid during the moratorium period
e when interest as well as principal of the loan is paid before moratorium
83 Under which kind of following mechanisms, the DSB returns being submitted by banks to
RBI, fall:
a early alert system
b on-site surveillance
c off-site supervision
d risk based supervision system
e prevention of money laundering
84 Which of the following cannot enter into a valid contract?

a a person temporarily of unsound mind and presently of sound mine
b a pardanashin lady
c an illiterate person
d a blind person
e a person of age of 17 plus years
85 Dearness allowance increase for bank employees is linked to which of the following:
a General increase in the inflation
b wholesale price index
c consumer price index
d consumer price index for industrial workers
e wholesale price index for industrial workers
86 Preservation of bank records is mandatory under which of the following Acts?

a RBI Act 1934
b Preservation of Books Act 1902
c Indian Evidence Act
d Banking Regulation Act 1949
e Companies Act 1956
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87 Which of the following accounts are reported under CVC directions:
a willful defaulters of Rs.10 lac and above
b willful defaulters of Rs.25 lac and above
c loan frauds of Rs.10 lac and above
d loan write-off of Rs.10 lac and above
e all the above
88 Under the rating system called CAMELS, the term `M’ stands for which of the following:
a management of assets and liabilities
b management of non-performing assets
c management of human resources
d management quality
e management policies
89 Which of the following documents relating to a loan transaction, can be kept blank by a
bank:
a: hypothecation agreement
b: Memorandum of mortgage
c: Share transfer deeds
d any of the above
e none of the above
90 A loan agreement is executed but it is not stamped properly:

a: It can be stamped later on after payment of penalty as per provision of State Stamp Acts and
can be treated as a valid documents, after obtaining permission of the collector of stamp duty.
b: The court can allow the bank to pay the duty with fine and validate the document
c: Since at the time of execution, the stamp duty has not been paid, this cannot be treated an
agreement
d: a and b
e: a to c any.
91 When there is an agreement in writing for creation of an equitable mortgage between the
parties and this forms a part of an equitable mortgage, the agreement in itself is an operative
instrument. This is not simply an evidence:
a: For such a document the registration is necessary
b: For such a document registration is not necessary
c: This depends upon the will of the bank
d: a and b
e None of the above
92 A banking company can acquire shares in a company subject to which of the following
ceiling:
a not exceeding 30% of the capital of the bank or 30% of the capital of the company,
whichever higher
b not exceeding 30% of the reserves of the bank or 30% of the capital of the company
whichever is lower
c not exceeding 30% of the paid up capital and reserves of the bank or 30% of the capital of
the company whichever is lower
d 30% of the capital of the company
e 30% of the authorised capital of the bank or 30% of the capital of the company
Problem. Following are the financial figures of a concern as on 31.03.2003

Particulars. Rs.
Capital 8,000
Sundry Debtors 10,000
Cash in Hand 3,000
Machinery 17,000
Prepaid expenses 1,000
Fixed deposit with bank 5,000
Bills payable 2,000
Debentures 22,000
Expenses outstanding 4,000
Stock 4,000
Sundry creditors 4,000
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Based on this information, please work out the following:
93 Net working capital in this case will be:

a Rs. 5,000 b Rs. 2,000
c Rs. 13,000 d Rs. 22,000
94 From the financial figures given in the above question total working capital works out to :
a Rs. 23,000 b Rs. 36,000
c Rs. 22,000 d Rs. 14,000
e Rs.12000
95 If in the above problem, the sales are Rs.115000, the working capital turnover ratio would
be:
a3b5
c7d8
e9
96 The liquidity aggregate L1, as per recommendations of YB Reddy Committee represents

which of the following:
a M 1 + deposits of financial institutions
b M 1 + deposits of post office
c M 2 + deposits of financial institutions and post office
d M 3 + deposits of post offices excluding NSCs
e M 3 + deposits of financial institutions and post office
97 In a real time gross settlement system, which is true with regard to the transmission,
processing and settlement of instruction:
a it is carried through a net work provided by SWIFT
b it is carried on a batch-system basis
c it is carried on a plat form provided by leading public sector banks
d it is carried on a continuous basis as and when the instructions are received and accepted by
the system
e it is carried when authorised by RBI
98 Proceeds of goods and services exported by an exporter are required to be brought to India
within 180 days normally. But a status holder can avail the normal repatriation period for export
proceeds up to ___, instead of normal 180 days:
a 360 days b 300 days
c 270 days d 225 days
e 200 days
99 In a computer system, the security is important for which of the following reasons:
a to secure the data
b to improve the reliability of the data
c to improve the quality of data
d to analyse the data
e all the above
100 Corporate Bank decides to allow a cash credit limit of Rs.25 lac to a trading firm in one of
its branches in Jaipur. The proposes to secure the loan by mortgage of a commercial property (located
in Kolkata) of the equal value, in the name of one the partners in the firm, who is sick and is admitted
in hospital. The firm wants the equitable mortgage to be created in the hospital itself:
a can be accepted, if the doctor certifies the illness and it one of the witness.
b cannot be created because the hospital is not part of the bank branch
c can be created if the hospital is located at a notified centre
d can be created if the title deed of the property is handed over to the bank officials
e can be created if the hospital would have been in Kolkata instead of Jaipur as property is
located in Kolkata
Answers : Test No.02

01 d 02 c 03 d 04 b 05 b 06 a 07 e 08 b 09 c 10 d 11 e 12 c 13 a 14 c 15 b 16 b 17 b 18 d 19 e
20 a 21 a 22 d 23 c 24 d 25 e 26 c 27 b 28 a 29 c 30 a 31 b 32 b 33 d 34 d 35 d 36 e 37 b 38 c
39 b 40 d 41 b 42 c 43 b 44 e 45 b 46 b 47 b 48 e 49 e 50 a 51 c 52 c 53 b 54 a 55 c 56 b 57 a
58 d 59 c 60 a 61 c 62 a 63 b 64 d 65 e 66 d 67 a 68 c 69 a 70 d 71 a 72 c 73 d 74 a 75 d 76 a
110
77 d 78 b 79 c 80 c 81 c 82 d 83 c 84 e 85 d 86 d 87 b 88 d 89 c 90 a 91 a 92 c 93 c 94 a 95 b
96 d 97 d 98 a 99 a 100 c
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MOCK PRACTICE TEST 3
1: If a minor admitted to a partnership firm for benefits becomes major and does not offer any
declaration about either becoming the partner of the firm or about intention to leave the firm as a
partner within 6 months of the date on which he became major or within 6 months of the date when he
first got information about his status as beneficiary of the firm:
a: It will be presumed that he is a partner

b: It will be presumed that he is not a partner
c: It will be presumed that his intention is not to become a partner
d: b and c
e None of the above
2: An attachment order of Rs.80000 on a partnership firm is received, whose current a/c shows a
balance of Rs.8000. The individual accounts of the partners A, B and C are showing credit balance of
Rs.40000, Rs.34000 and Rs.2500 respectively. To meet the payment stated in the order, how much
amount will be payable from A’s account ?
a Rs.32500 b Rs.35500
c Rs.37500 d Rs.40000
e Rs.39500
3 M/s Rahim Khan and Company import certain goods and after payment of the documents to the
bank, send the shipping documents to their clearing agents M/s Shoab Clearing Agents with the
instruction that they may dispose of the goods and also stipulate the minimum rate for which these
goods can be sold. The clearing agents sell the goods for a price little less than the stipulated price. M/s
Rahim Khan and Company claim the return of the goods from the buyer:
a since the clearing agents have sold the goods for a price lower than the stipulated one, the
buyer will have to return the goods.
b since the clearing agents have sold the goods at a lower price without seeking confirmation
from the principals, the goods will have to be returned
c the buyer cannot be forced to return the goods, since they do not have any notice of the
condition stipulated by the principals
d the buyer cannot be forced to return even if he had the information about the condition
e none of the above
4 A bill of exchange is drawn by M/s Kasturi Lal and Sons on M/s Shiva Traders in consideration
of purchase of goods, Mr. Shayam Kumar being its payee. Shayam Kumar endorsed the bill in
favour of Mr. Shanti Prakash who had endorsed it in blank. It is stolen by Mr. Sudhir Phatke, an
employee of Shanti Prakash and delivered to M/s Dyal Traders for value, but it is dishonoured on
presentation for payment. From whom can M/s Dyal Traders recover the amount on the bill?
a From Mr. Shanti Prakash

b From M/s Shiva Traders
c From M/s Kasturi Lal & Sons
d From Shyam Kumar
e From all the above
5. Non performing advance is an advance (except Cash Credit) which remains past due for a period
of more than
a: 360 days b: 180 days
c: 90 days d 30 days
e: none of the above
6 Credit Bank maintains a current account of M/s Chitam Enterprises in which the firm deposits a
cheque of Rs.52000. On careful examination, the bank finds that the words `non-negotiable’ are
written on lower part of the cheque without the parallel transverse lines. The concerned officer of
the bank is not sure about whether to accept it for collection or not:
a it is uncrossed instrument and two parallel transverse lines should be drawn
b it is not a clear direction from the drawer due to which the cheque should not be accepted for
collection
112
c the words `not-negotiable’ can be written without parallel lines. But this will not be considered as
crossing. It can be accepted for collection.
d the transferability of the instrument has been affected due to these words, due to which the
instrument should not be accepted.
e none of the above
7 Your branch receives a dividend warrant of Rs.560 in favour of one Mrs. Rama Devi presented
by State Bank in clearing. On the back side of the dividend warrant, it is stated that payee’s
discharge is needed but the payee has not signed the same in giving discharge.
a the dividend warrant will be returned unpaid as the requirement of discharge has not been met,
which the drawer had imposed. Payment if made, will not be a payment in due course.
b the dividend warrant will be returned as it has been presented by another bank which has not
given its confirmation
c the dividend warrant will be paid without discharge from the payee, as such discharge is not a
legal requirement
d the dividend warrant will be paid after confirmation from the collecting bank
e none of the above
8 New Delhi branch of Modern Bank issued a fixed deposit of Rs.3 lac for 5 years in the name of
Mr. S Subramaniam who raises a loan of Rs.50000 against the FDR with a view to meet exigencies
at a later stage. He comes for addition of the name of his son, as he is not keeping good health for
few months.
a the request of the depositor will be accepted being a genuine reason
b the request will be accepted since the addition is for the his son’s name
c the request will be accepted since the FDR is to mature after long time
d the request cannot be accepted till the loan is outstanding
e any of the above
9 Universal Bank is approached by Sameer, a 17 old boy with his PAN card and other necessary
information for opening a current account. He is having substantial investments in shares and
receives regular dividend. His father has recently expired and his father’s investment will also be
transferred in his name in future:
a the account cannot be opened as it exposes the bank to undue risk
b the account cannot be opened as it is for share transactions
c the current account can be opened by the minor as he can draw, negotiate and give valid
discharge
d the current account can be opened by Sameer alongwith his mother, if she is willing to do the
same
e none of the above
10 What is the no. of minimum and maximum shareholders in a public limited joint stock
company:
a minimum 2 maximum 7
b minimum 3 maximum 50
c minimum 4 maximum 50
d minimum 7 maximum 50
e minimum 7 maximum no ceiling
11 A loan is sub-standard asset for a period of more than one year. The provision is to be made at
the rate of....of the outstanding amount:
a: 10% b: 20%
c: 30% d: 100% for the unsecured portion
e a and d above
12 Which of the following is a situation that can be termed as negative working capital?
a when current assets are equal to current liabilities
b when current assets are less than current liabilities
c when current assets are more than current liabilities
d when there are losses and current ratio is 1:1
e when the current ratio is below the ideal ratio of 1.33:1
13 What is the maximum amount for which the CGFTSI guarantee cover is available:
a: Rs.18.75 lac
b: Rs.25 lac
c: 75% of the amount on date of NPA
113
d: Rs.10 lac
e a and b
14 A loan of Rs.4 lac each is allowed by bank Z to a doctor having his own clinic and a lawyer
having his own practice. These loans shall be classified as:
a: loan to doctor as priority sector and to lawyer as non-priority sector
b: loan to lawyer as priority sector and to doctor as non-priority sector
c: loan to doctor and to lawyer as non-priority sector
d loan to doctor and to lawyer as priority sector
15 Premium is to be paid by the bank to DICGC for the half-year ended Sept 2005. As on which
date the amount of deposits is to be taken into account:
a last Friday of Mar 2005
b Last day of Sep 2004
c last working day of Mar 2005
d last Friday of Sep 2004
e none of the above
16 The term ‘firewall technology’ refers to:

a computer software that protects a computer system from virus.
b computer software that removes the computer virus.
c computer operating software.
d computer hardware to protect a computer from incident of fire
e computer software that protects a computer system from outward intrusion.
17 What is the maximum no. of partners in a non-banking firm.

a 20
b 20 excluding the minor partner
c 10
d 10 including the minor partner
e 20 including the minor partner
18 Risk arising from failure of computer system and loss of data is:
a: credit risk
b: system risk
c: liquidity risk
d: operational risk
e computer risk
19 On which among the following, a garnishee order is not applicable?.

a funds in the account at the time of receipt of garnishee order
b term deposit receipt which is yet to mature
c recurring deposit the maturity of which will be 3 months after
d a cheque realization advice that has not been credited to the account
e amount deposited by the customer after receipt of the garnishee order
20 A mortgagor sells the property to the mortgagee under the condition that the sale would become
absolute on fulfillment of specific conditions:
a: This mortgage by conditional sale
b: This is English mortgage
c: This is a sale cum mortgage transaction
d: This is a sale with promise to buy back
e a and c
21 Who can deposit the title deed with the bank for creating an equitable mortgage:
a: Owner
b: His authorised agent
c a person directed by the court
d: a and b
e: a to c
22 Whether a trustee can appoint agent:

a: As a trustee, he cannot
b: As individual person, he can
114
c: Under all circumstances, he cannot
d: a & b both
e a to c
23 A state govt. guaranteed advances would be treated NPA if overdue for more than 90 days
wef:
a: 31.03.2005
b: 31.03.2006
c: 31.03.2007
d To be treated NPA for income recognition purpose only
e: Such accounts are not to be treated as NPA.
24 Advances against their own shares are not allowed by banks because these are prohibited
under:
a RBI Act 1934
b Negotiable Instrument Act
c Banking Regulation Act 1949
d SEBI Act
e c and d
25 A returning non-resident Indian wants to open an account with you but wants to be sure
about what can be repatriated by him in case of need.
a no repatriation allowed
b only interest can be repatriated
c only principal can be repatriated
d principal and interest both can be repatriated
e none of the above
26 Which of the following defines a foreign exchange forward contract better?

a exchange rate that is determined in future
b exchange rate that is determined in future but delivery is made now
c exchange rate that is determined now but delivery of currency is made in future on a day
fixed at the time of making the contract
d exchange rate and delivery, both are determined in future
e none of the above
27 Modern Bank had granted a term loan for purchase of a car to Mr. Ramesh Chander which
has become time barred debt last month. A letter written 8 months back, by Mr. Ramesh
Chander to his friend Mr. Satish Kumar falls in the hands of the bank in which he had
requested Mr. Satish Kumar to give him certain funds as he has to repay the above stated loan
of the bank.
a the letter can be treated as acknowledgement of debt if particulars of the loan match with
those given in the letter which would extend the limitation period
b the letter can not be used for the purpose of the limitation period as it is not stamped
c the letter can not be used for limitation purpose as it is not addressed to the bank
d the letter can be used for limitation period but it is not stamped adequately
e all the above
28 Official language policy came in to force with effect from which of the following dates:
a Aug 16, 1947
b Sept 14, 1947
c Jan 26, 1947
d Jan 26, 1950
e Aug 16, 1950
29 What is the maximum amount for the purpose of arbitration under Banking Ombudsman
scheme 2002.
a Rs. 2 lac b Rs. 3 lac
c Rs. 5 lac d Rs. 10 lac
e None of the above
30 In case of overdraft facility, where the account is showing credit balance temporarily, what
is the relationship of the bank and customer.
a creditor and debtor
b debtor and creditor
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c principle and agent
d trustee and beneficiary
e none of the above
31 Which section of the respective Act covers the SLR:

a Section 24(2A) of BR Act 1949
b Section 23 of BR Act 1949
c Section 27 of RBI Act
d Section 24(2) of RBI Act
e Section 14 of BR Act
32 The loan system of credit delivery is mandatorily applicable for loan accounts having:
a term loan of Rs.10 crore and above
b fund based working capital limits (MPBF) of Rs.10 cr and above
c non-fund based limits of Rs.10 cr and above
d combined limits of Rs.10 cr and above
e a, b and d
33 When payment of a term deposit receipt is made, what is the amount of interest per
financial year, for deduction of tax at source.
a Rs.5000 or above from a bank
b Above Rs.5000 from a bank branch
c Above Rs.5000 from all branches of the bank taken together
d Rs.5000 and above including interest on saving bank deposits
e none of the above
34 Your branch has sanctioned cash credit limit of Rs.12 lac to M/s United Pharmacy. As at
the close of July 31, it has been carrying stocks worth Rs.9 lac, sundry creditors of Rs.3 lac
and book debts of Rs.6 lac. Bank has prescribed a margin of 25% on stocks and 30% on book
debts. What is the maximum amount that can be withdrawn in the cash credit limit ?
a Rs.8.70 lac b Rs.8.30 lac
c Rs.12 lac d Rs.6.75 lac
e Rs.7.25 lac
35 At the time of renewal of working capital limits by your branch, the loan officer observed
that M/s Babra Enterprises’s utilisation of funds on a long term basis is 80% of the long term
sources during the year. Which among the following would be the result of this kind of
financial management:
a the current liabilities would increase
b the current assets would decline
c the current ratio would decline
d the current ratio would improve
e none of the above
36 Which among the following, is the Authority that fixes the rate of interest on saving bank
deposits in banks?
a Reserve Bank of India
b Ministry of Finance
c Indian Banks’ Association
d Board of Directors of a Bank
e None of the above
37 Stock audit is compulsory in case of NPA account, if the amount outstanding is Rs.____ or
more
a: 5 cr
b: 4 cr
c: 3 cr
d: 2 cr
e 1 cr
38 Popular Bank decides to provide finance to Ghai Films Ltd for production of a film. The
working capital assessment would be done by the bank on the basis of:
a: cash budget system
b: turnover method of Nayak Committee
c: Traditional method of Tandon Committee
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d: any of the above at bank’s discretion
e none of the above
39 What is the period of limitation for the recovery of a loan given on the basis of a demand
promissory note:
a: Three years
b: Three years from date of note
c: Three years from filing of suit
d: Three years from date of default
e b and d
40 Corporate Bank files suit for recovery of its loan against the guarantor only and not the
borrower. Guarantor pleads in the court that before filing suit against him, money should be
recovered from the borrower. In such circumstances, the bank can seek recourse in the court
against:
a: all the liable parties together only
b: any one of them at a time
c: all separately
d: at its discretion it can proceed against any one.
e at the discretion of the court
41 A public limited company opens a collection account for its public issue. The bank wants
to withdraw the funds for use for the purpose for which the issue was floated. On what
condition, this can be done.
a: If Co. produces certificate of commencement of business
b: If Co submits copy of certificate of incorporation
c: If prospectus is issued
d: When co. requests the bank
e a and c
42 What is the minimum amount outstanding in case of willful default, that the information
will be required to be sent to CIBIL:
a: Rs.2.5 lac
b: Rs.10 lac
c: Rs.25 lac
d: Rs.100 lac
e none of the above
43 In those case where the process of dissolution of a firm has started, what are the situations
where the partners still have rights to bind the other partners:
a: To wind up the business of firm
b: To complete all those transactions which could not be completed till date of dissolution
c: till all the liabilities of the firm are discharged
d a and b
e: a to c
44 In a PMRY group loan, the interest rate would be decided on the basis of:
a: total amount of the project cost
b: total amount of the loan
c: total amount of loan and subsidy
d: per capita loan amount
e per capital project cost
45 Your branch receives a cheque of Rs.17500 in the account of a saving bank customer. The
balance in the account is Rs.16700. An outstation cheque of Rs.23000 has been sent for
collection, the proceeds of which have not been received as yet. While returning the cheque,
which among the following reasons will be given:
a insufficient funds
b exceeds arrangements, please present again
c effects not cleared, please present again
d drawer’s instructions awaited
e refer to drawer
46 In an HUF, there is one male major member having two minor sons. After his death who
will function on behalf of the Karta of HUF:
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a: Eldest son
b: Youngest son
c: Natural guardian of the eldest son
d guardian of the eldest appointed by court if there is no natural guardian
e: c and d
47 A Hindu soldier gives an oral will while he is fighting on Indo-Pak border. Such wills are
called:
a oral will
b invalid will
c privileged will
d unprivileged will
e a and c
48 A charitable trust is registered with:

a: Registrar of Trusts
b: Register of Societies
c: Registrar of Companies
d: Commissioner of Charity
e a or b
49 Investment fluctuation reserve would be classified by a bank for the purpose of capital
adequacy ratio under:
a: tier I capital fund
b: paid up capital
c: tier II capital fund
d: tier III capital fund
e at the discretion of the bank
50 Who can act as natural guardian in respect of a Hindu Minor:

a father alone
b mother alongwith father
c father and after his death mother
d grand-father
e b and c
51 In which of the following, a term deposit receipt can be classified ?

a not negotiable but transferable
b transferable actionable claim
c not transferable actionable claim
d a demand liability
e none of the above
52 What kind of an asset is goodwill as per the Indian Accounting Standards ?

a intangible asset
b fictitious asset
c current assets
d fixed asset
e not an asset
53 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 SF
account. The Bank:
a: 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
c: Intervention of the court required
d: loan recall is not a necessary condition
54 Your branch is having a partnership current account and a garnishee order in the name of a
partner in the firm, is received. It will:
a apply to all partners
b apply to firm’s account
c not apply to firm’s account
d not apply to any one.
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e a and c
55 A garnishee order is applicable to

a: Demand deposits
b: Time deposits subject to maturity
c Recurring Deposit
d: a to c
e: b and c
56 For a loan to be raised in case of need, a persons assigns his insurance policy in favour of
the bank. Such relationship of the customer with the bank, will be of a/an:
a pledger and pledgee
b beneficiary and trustee
c lender and borrower
d assignor and assignee
e assignee and assignor
57 Which of the following is a current liability for the purpose of classification to analyse a
balance sheet
a debentures dues after 2 years
b term loan with a moratorium of 3 years
c general reserve created only 3 months earlier
d provision for disputed income tax liability
e none of the above
58 One rupee note bears the signatures of:

a: Governor RBI.
b: Secy. Ministry of Finance
c: Prime Minister of India
d: Finance Minister.
e President of India
59 As per section 45(ZA) of Banking Regulation Act 1949:

a: Nomination facility has been granted for bank deposits.
b: Guidelines have been laid down for election of Chairmen and Managing Directors of the
banks.
c: Guidelines have been given for providing working capital to big units.
d: nomination facility is available for locker accounts
e nomination facility for safe deposit vault
60 The report on Harmonisation of role of FIs and banks relating to universal banking, was
given by:
a M S Verma
b R H Khan
c B D Shah
d K S Shere
e Narasimham Committee
61 Sale of an SME firm is Rs.240 lac. Its requirement for working capital is equal to 5
month’s sales. What will be the amount of working capital.
a Rs.60 lac
b Rs.75 lac
c Rs.90 lac
d Rs.100 lac
e none of the above
62 Sale of an SME firm is Rs.240 lac. Its requirement for working capital is equal to 5
month’s sales. What will be the amount of margin & bank limit.
a Rs.48 lac, 12 lac
b Rs.60 lac, 15 lac
c Rs.72 lac, 18 lac
d Rs.80 lac, 20 lac
e none of the above
63 Repayment capacity in case of term loan proposals is judged by the banks with which of
the following ratios :
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a debt equity ratio
b internal rate of return
c net present value
d break even analysis
e debt service coverage ratio
64 A collecting bank gets statutory protection under:

a: RBI Act
b: Banking Regulation Act
c: Negotiable Instruments Act
d: Indian Contract Act
e None of the above
65 What is the time period under SARFAESI Act, for replying the borrower, in case he raises
an objection for possession of the asset:
a: 60 days
b: 30 days
c: 7 days
d: 3 days
e none of the above
66 B is payee of a cheque, who endorses it to C. C lost the cheque which is found by D, who
endorses it in favour of A for valuable consideration by way of forging C’ signatures. The
cheque is dishonoured. A can recover from:
a: B b: C
c: D
d: any of the previous parties
e None of the previous parties
67 A, a customer has a saving bank account and her husband had withdrawn the money from
the bank on the basis of forged cheques at various occasions but the customer did not object to
it. After his death, she comes to bank and demands the money:
a: Bank would refer the matter to the court
b: Bank is liable on forged cheques
c: The bank is negligent but not liable, as the customer is party to the forgery and did not
inform the bank in time
d: loss shall be borne in the ratio of 50:50 by the bank and the customer
e None of the above
68 A firm discounts its export receivables of up to 5 years without recourse to the exporter
under which of the following arrangement:
a forfaiting
b factoring
c securitisation
d bills discounting
e foreign bills discounting
69 Who among the following will sign the account opening form for opening a current
account in case of a partnership firm where the firm has three partners and a minor, aged 17,
has been admitted to the firm for benefits?
a all the three and the father of the minor
b all the three and natural guardian of the minor
c all the three and the minor himself
d all the three partners only
e any of the above
70 You receive a garnishee order for a current account maintained in your branch. A cheque is
received for payment. What memo should be appended while returning the cheque:
a: Garnishee order received
b: Refer to drawer. Garnishee order received
c: insufficiency of funds due to garnishee order
d a and b
e a to c
71 A bill presented by your branch is dishonoured and you want to get its noting. The
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provision regarding noting is described under section...of NI Act:
a: 100 b: 99
c: 85A d: 131
e 87
72 If a borrower wants to file an appeal with DRAT against the decision of DRT under
SARFAESI Act, how much amount it will be required to deposit:
a: 75% of the amount
b: 50% of the amount
c: 25% of the amount
d: 10% of the amount
e there is no need for deposit of the amount.
73 If a borrower wants to file an appeal with DRAT against the decision of DRT under DRT
Act, how much amount it will be required to deposit:
a: 75% of the amount
b: 50% of the amount
c: 25% of the amount
d: 10% of the amount
e there is no need for deposit of the amount.
74 A is having a locker and sends the key by post with an intention to surrender the locker:
a: bank will be discharged of its liability, if key is accompanied by a letter stating the contents
of the lockers as NIL
b: The bank will not be discharged of its liability
c: The bank should not accept
d: bank can accept subject to its rights under reserve
e None of the above
75 A and B maintain an FD account with a locker and want to make single nomination for
both the accounts :
a: Nomination can be made in both the accounts separately
b: Nomination can not be allowed in lockers in joint names
c: It will depend on bank’s discretion
d: nomination can be accepted
e None of the above
76 If a cheque is crossed as account payee, this is direction of ___, to ___:

a payee, paying bank
b payee, collecting bank
c drawer, paying bank
d drawer, collecting bank
e drawer, paying & collecting bank
77 In terms of recommendations of Tandon Committee, which of the following is considered

as ideal current ratio by banks for sanction of term loans:
a 1:1 b 1.17:1
c 1.25:1 d 1.33:1
e none of the above
78 There is an FDR of A and B but A dies before its maturity. B also dies one week after his
death. FD amount is payable to:
a: Legal heirs of A
b: Legal heirs of B
c: Legal heirs of A and B
d: legal heirs of the person who died later
79 Analysis of balance sheet of a partnership firm shows that its total net worth is more than
the total outside liabilities.
a it can be termed as a desirable situation
b it can be termed as an excellent and desirable situation
c it reflects the conservatism on the part of the management
d it reflects risk appetite of the management
e all the above
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80 For the purpose of creation of equitable mortgage, who notifies the places for deposit of
title deeds:
a Central Govt.
b Local self Govt.
c President of India
d Governor of the State
e State Govt.
81 In deposit accounts, the photographs are obtained. Why ?

a: to avoid frauds
b: to avoid irregularities
c: to detect irregularities in financial transactions
d to comply with UN directives
e: to check benami accounts / transactions
82 Which among the following has formulated the govt. sponsored scheme called ` Swaran
Jayanti Gram Swarozgar Yojana ?
a Agricultural Deptt of State Govt.
b Ministry of Agriculture of State
c Union Ministry of Rural Development
d Distt. Rural Development Agency
e Lead Bank of the concerned Distt
83 What is the requirement of margin under the Scheme for Liberation and Rehabilitation of
Scavengers (SLRS):
a 20% of the project cost with maximum of Rs.7500
b 15% of the amount of loan with a maximum of Rs.7500
c 15% of the project cost with maximum of Rs.7500
d 10% of the project cost with maximum of Rs.7500
e 15% of the amount of subsidy maximum Rs.7500
84 In a private limited company the minimum and maximum no. of shareholders can be:
a: 1 and 20 b: 20 and 100
c: 100 and 1000 d: 2 and 50
85 What is the meaning of a scheduled bank ?

a: The bank functioning under provisions of Banking Reg. Act 1949.
b: The bank included in 2nd schedule of RBI Act 1934.
c: The bank incorporated under Banking Companies Act 1956.
d: The bank authorised to do banking functions.
e bank issued a license by RBI mentioning therein that it is a scheduled bank
86 Who fixes the scale of finance for crop loan for agricultural advances in India:
a Distt Crop Committee
b Distt Technical Committee
c State Agri. Deptt
d State Technical Committee
e a or c
87 Section 31 of RBI Act permits only RBI and Central Govt. to issue/draw:
a bills payable to bearer on demand
b promissory notes payable to bearer on demand
c cheques payable to bearer on demand
d a & b above
e a to c
88 Where the foreign banks fail to achieve the lending target for SME under priority sector:
a they have to deposit the amount of shortfall with NABARD
b they have to deposit the amount of shortfall with KVIC
c they have to deposit the amount of shortfall with RBI
d they have to deposit the amount of shortfall with SIDBI
e any of the above
89 What is the sub-target for advances to SME by the commercial banks for units having
122
investment in plant and machinery above Rs.25 lac ?
a Minimum 40% of Net Bank Credit
b Maximum 40% of net bank credit
c 40% of the SME advances
d Minimum 40% of SME advances
e Maximum 40% of SME advances
90 Under Know Your Customer guidelines of RBI, for which period the records are required
to be maintained:
a 1 years b 2 years
c 4 years d 5 years
e 10 years
91 A month back the dollar-rupee rate was Rs.39.90 per dollar. Now it is Rs.41.10 per dollar.
Who among the following is the gainer:
a who exports b who imports
c who has to make outward remittance
d who moves for a visit abroad
e none of the above
92 Dollar has shown increase in its value compared to Indian rupee. Which of the following
would be true ?
a Exports from India will go up
b Imports into India will become costly
c Trade with other nations will be reduced
d b or c
e None of the above
93 Interest and principal can be repatriated by an NRI, in the following accounts ?

a FCNR b NRE
c EEFC d a & b
e all the above
The following data is taken from the balance sheet of a firm:

Capital and Reserves 50
Bank term loan 50
Bank cash credit 50
Current liabilities 50
Fixed Assets 70
Preliminary expenses 10
Cash/Bank balance 20
Stocks 60
Book debts 30
Prepaid expenses 10
Sales 300
Profit 10
On the basis of above information:
94 What is the net worth:

a 50 b 45
c 40 d 30
e 20
95 What is the current ratio:

a 1.5:1 b 1.33:1
c 1.20:1 d 1.10:1
e 1.00:1
96 What is the acid test ratio (quick ratio)

a 0.25:1 b 0.50:1
c 0.75:1 d 0.80:1
e none of the above
97 What is the debit equity ratio?
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a 3:1 b 2:1
c 2.25:1 d 1.25:1
e 1:1
98 What is the total indebtedness ratio:

a 6:1 b 4.25:1
c 4.0:1 d 3.75:1
e 3.25:1
99 What is the stock turnover ratio?

a 3 times b 4 times
c 5 times d 6 times
e none of the above
100 What is the debtors’ velocity ratio

a 2.1 months
b 1.60 months
c 1.20 months
d 1.09 months
e 1 months
Answers : Test No. 03

01 a 02 b 03 c 04 e 05 e 06 c 07 a 08 d 09 c 10 e 11 b 12 b 13 b 14 a 15 c 16 e 17 a 18 d 19 e
20 a 21 d 22 d 23 b 24 c 25 d 26 c 27 a 28 d 29 d 30 b 31 a 32 b 33 b 34 a 35 d 36 a 37 a 38 a
39 b 40 d 41 a 42 c 43 d 44 d 45 a 46 e 47 c 48 d 49 a 50 c 51 c 52 b 53 b 54 c 55 d 56 d 57 d
58 b 59 a 60 b 61 d 62 d 63 e 64 c 65 c 66 c 67 b 68 a 69 d 70 a 71 b 72 b 73 a 74 a 75 a 76 d
77 e 78 c 79 c 80 e 81 e 82 c 83 c 84 d 85 b 86 b 87 d 88 d 89 e 90 d 91 a 92 b 93 d 94 c 95 c
96 b 97 d 98 d 99 c 100 c
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Model Test Paper
1} In the Debt restructuring scheme for SMEs, banks should work out the restructuring package
within a period of ____from the receipt of request from the SME unit.
a) 30 days b) 60 days c) 90 days d) 120 days
2) The exposure limits for banks as fixed by RBI is 15% for individuals and 40% for groups (%
of capital funds). This exposure however can be extended further by _________in case the same is for
Infrastructure projects.
a) 5% in the case of Groups
b) 5% in case of exposures to single borrowers
c) 5% in both single borrower & group exposures
d) 5% in the case of single borrower & 10% in the case of groups
3) Change in the rating of a borrower over a period of time when rated in the same standard or
model is called:
a) Credit rating b) Rating migration c) Rating life cycle d) Credit rate
mapping
4) The term used for the process which allows CPU to overlap the input of one job with the
computation and output of the other job is_:
a) Buffering b) Spooling c) Gophering
d) Browsering e) None of these
5) Which of the following is the odd man out?

a) Serial processing b) Batch processing c) Mini processing d) Multi processing
6)Which of the following accounts cannot be opened by a non-resident Indian residing in United
States for the last 10 years:
a)non-resident external b) non-resident ordinary c)resident foreign currency d) foreign
currency nonresident e) none of the above
7) A status holder such as Export House can retain _________of foreign exchange in EEFC
account.
1) 50% 2) 70% 3) 100% 4) any of the above 5) none of the above
8) Which among the following can remit upto US $ 2,00,000, under RBI's relaxed noons:
a All resident individuals b All NRIs c Resident companies
d Resident partnership finns e Resident HUFs and Trusts
9) An exporter has received repayment of certain bills he had sent for collection and now wants
to retain the same in foreign currency:
a He can open current account as EEFC account
b he can open fixed deposit account as EEFC account
c he can open saving bank account as EEFC account
d he can open any of the above provided no interest is paid
e) he can open only a and c
10) A non-resident Indian approaches you with a bank draft is dollars to open a . non-resident
external account with your branch and seeks your guidance as to what kind of account can be
opened by him:
a) saving bank account b) current account c) term deposit account
d) all the above e) only a and c
11)A bill of lading narrates the defective condition of the packing as well as, of the goods packed.
Such bills of lading is called:
a clean bill of lading b straight bill of lading c short bill of lading.
d claused bill of lading e it is not a valid bill of lading
12)M/s United Exports Ltd obtained an export order for export of hand tools to Germany for US
$ 30000. It has been stated in the credit that in case of need, the exporter can transfer the letter of
credit in favour of any other party. Such a letter of credit can be categorised as:
a) back to back credit b)transferable letter of credit c)green
clause letter of credit d)red clause letter of credit e)irrevocable
letter of credit
125
13)Your client M/s Tushir Exports receives a letter of credit for export of hand-tools to UK. The
letter of credit provides for allowing pre-shipment credit on the strength of the letter of credit for
shipment of the handtools ordered by the importer in UK. Which of the following types of
credits, it can be classified:
a revocable letter of credit b confirmed letter of credit c back to back credit
d green clause letter of credit e red clause letter of credit
14) Proceeds of goods and services exported by an exporter are required to be brought to India
within 180 days normally. But a status holder can avail the normal repatriation period for export
proceeds up to _____ instead of normal 180 days:
a) 360 days b) 300 days c) 270 days d)225 days e)200 days
15) Back to back letter of credits mean:

a revalidating a credit b another credit behind the credit issued
c issuance of another credit on the security of the original letter of credit.
d LC which is backed by a tangible security e)none of the above
16) When a foreign currency for forward transactions is quoted at discount:

a the currency is dearer infuture b the currency is expected to be cheaper in future
c the currency at same rate in futured currency will be available with ease in future
E. none of the above
17) Universal Bank is approached by one of their existing customers to retire an import bill
received by the bank for collection from a foreign seller, the due date of which is falling shortly.
Which of the following rates, the bank will apply for this transaction?
A. bills selling rate b. forward sale contract rate -if it is already booked
c) bill buying rated) IT selling rate e) a and b above
18) Trade transactions in foreign exchange between Srilanka & India are settled by way of:
a) Indian rupee b) Srilankan currency c) US dollars d) ACU dollars e) SDRs
19) Which among the following is the authority which has prescribed the Uniform Customs and
practices for Documentary Credits guidelines, applicable for inland letters of credits:
a) Reserve Bank b) Ministry of Commerce c) FEDAI
d) DGFT e) ICC Paris
20) If a letter of credit does not specify the expiry date of presentation of documents after date of
shipment, the documents are to be presented within:
a 7 days b 10 days c 21 days d 30 days
e 45 days
21) Which of the following form is used by a resident Indian for purchase of foreign exchange in
case of import payments?
a AI b A2 cA3 d A4 e. Simple application
22) State Bank opens a current account with Bank of America in Los Angles for its day to day
business transactions, in US dollars. Which of the following kinds of accounts, it will be known?
a Vostro Account b Nostro Account c Loro Account d Escrow Account e None of the above
23) A firm is able to discount its export receivables of up to 5 years without recourse to the
exporter.This can be classified as:
a forfeiting b factoring c securitization d bills discounting e foreign bills
discounting
24) Dollar has shown increase in its value compared to Indian rupee. Which of the following
would be true?
a) Exports from India will go up b) Imports into India will become costly
c) Trcade with other nations will be reduced d) b orc e) none of the above
25)An FCNR-B tenn deposit is maturing on Saturday and customer demands its payment. It will
be paid:
a on Saturday with interest up to Friday

b on Saturday with interest up to Saturday
c on Monday with interest up to Monday
126
d on Friday with interest up to Friday
26) What is the amount of foreign exchange which a person resident in India can retain?
a $ 2000 b $ 5000 c $ 10000
d cannot retain any amount ,
27) What is the cut off amount of foreign exchange brought in India, for which the declaration
Form CDF is required to be made?
a travelers cheques exceeding $ 20000 b currency notes exceeding $10000
c travelers cheques exceeding $ 10000 and currency notes exceeding $ 5000
d total amount exceeding $ 10000 or currency notes exceeding $ 5000
28)The term R returns refers to returns concerning________. What is the periodicity of

submission of R returns?
a Capital Adequacy Ratio,monthly b NP A position of banks,fortnightly
c CRR maintenance position, monthly d ALM position, fortnightly
e Foreign exchange transactions, fortnightly
29) Under Gold Card scheme for exporters, based on credit worthiness of the card holder,
which of the following is not correct:
a banks could consider waiver of collateral security
b banks could consider exemption from ECGC guarantee cover
c requests for credit would be considered quickly maximum within 7 days
d in-principle limits would be set up for 3 years
e provision for stand-by limit of 20% to meet urgent credit needs would be made.
30) When a bank has oversold position in foreign currency in an appreciating market
which of the following would be true?
a bank wi11 be gaining while covering its position
b bank may incur loss while covering its position
c there wi11 not be any impact, since bank has already sold the currency
d bank wi11 gain while purchasing the fresh currency
e none of the above
31) The term green field projects in the context of project financing means:
a projects installed in green fields. b projects relating to agro based activities
c projects financed by way of agriculture resources
d new projects, which have to be started from scratch including the provision for infrastructural
provisions
e c and d
32) RBI has been encouraging finance for infrastructure. The definition of RBI, for
infrastructure, is based on:
a World bank guidelines b Rakesh Mohan Committee recommendations
c Income Tax Act 1961 d No change from the previous guidelines e none of the above
33)The cash reserve ratio (CRR) is required to be maintained by banks under:

a Banking Regulation Act b Reserve Bank of India Act c Negotiable Instruments Act
d Indian Companies Act e none of the above
34) Under gold card for Exporters, credit proposal on renewal basis is to be disposed off within:
a 30 days b 25 days c 20 days d 15 days
35) The cut-off point for reporting the accounts under Credit Monitoring Arrangement for term
loans is Rs._____
a 3 crores b 2 crores c 10 crores d 1 5 crores e None of
these
36)What is the penal rate of interest in general which is to be charged for various reasons?
37) PMS is required to be submitted for all borrowal accounts with aggregate credit limits above
Rs_____ in specified branches and above Rs ________Crores in other branches.
38)while financing to service sector, working capital limits upto Rs _____lacs be financed by way
127
of WCTL repayable in 2 to 5 years.
39) What are the margin requirements in case of service sector financing?
40) As per our bank policy, settlement of NPA accounts upto Rs________ lacs be done with the
help of Lok Adalata.
41) Board has approved policy for engagement of Recovery agencies to supplement efforts of
branch officials in recovering bank dues in NPAs of doubtful and loss categories upto____lacs.
42) In terms of Bank guidelines for considering OTS in written off accounts, what is the
repayment period under BM power if the OTS is approved?
43) In terms of Bank guidelines for considering OTS in written off accounts, powers have been
delegated at BM level if compromise offer is______or more of the base amount.
44) In the first fortnight the entire cash will be checked by the______.
45) If cash shortage is not recovered from the cashier on the same day , which account will be
debited?
46) Which day is celebrated as ‘National Consumer Right Day’?
47) ___________is the 1st Indian Public Sector Bank which has achieved 100% networking.
48) A Retail investor is one who applies or bids for securities of value of not more than
Rs.______?
49) With in how many days deceased accounts have to be settled by banks as per RBI directions?
50) The process by which the physical movement of cheque within a bank or through clearing
house is curtailed is known as_________
ANSWER
1b 2d 3b 4b 5C 6c 7c 8a 9a 10 d 11 d 12 b
13 e 14 a 15 c 16 b 17 e 18 d 19 e 20 c 21 a 22 b 23 a 24 b
25 c 26 a 27 d 28 e 29 c 30 b 31 d 32 c 33 b 34 d 35 c
36- 2%
37- 1 Crores: 12 Crores.
38- Rs 25 lacs.
39- 20% to 40% depending upon the nature of activity, person behind the project etc, .
40- 20 lacs. .
41- 10 lacs.
42- 3 months. (Mx 12 months by next higher authority)
43- 50%
44- Incumbent Incharge of the bank.
45- Protested Advance
46-24 December
47-SBOP
48- Rs. 1 lac
49- 15 days.
50- Cheque truncation
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1) Preservation of bank records is mandatory under which of the following act?
1) RBI Act 1934 2) Preservation of Books act 1902
3) Indian Evidence act 4) Banking Regulation act 5) None of the above.
2) What is the minimum period of commercial paper?
1) 1 day,2) 7 days, 3) 14 days, 4) 30 days, 5) None of the above.
3) Quarterly Monitoring System is applicable to borrowers enjoying:
1) FBWC limits of Rs 1 Crores and above. 2)FBWC limits of above Rs 1 Crores,
3) Total limits of Rs 1 Crores and above, 4) Total limits of above Rs 1 Crores,
5)None of the above.
4) What is the maximum amount of loan to a pensioner of above 75 year of age?
1) Rs 1 lacs, 2) Rs 75000 3) Rs 60000 4) Rs 48000 5) None of

the above.
5) What is the minimum salary of a teacher to become eligible for PNB Privilege Card?
1) Rs 5000 2) Rs 10000 3) Rs 15000 4) Rs 7500 5) None of

the above.
6) What is the maximum limit in case of PNB Swarojgar Credit Card (SCC)?
1 ) Rs 25000 2) Rs 50000 3) Rs 2 lacs 4) Rs 1 lacs 5) None of

the above.
7) PNBLUCC can be offered to a borrower having satisfactory conduct of account for the last
1 ) 1 year, 2) 2 years, 3) 3 years, 4) 4 years, 5) None of

the above.
8) What is the %age of collateral to loan amount is required in case of OD against IP?
1 ) 100% 2) 150% 3) 200% 4) 250% 5) None of the above.
9)Mukesh has been sanctioned education loan of Rs 4.00 lacs for study in Austrialia. What will be
the margin requirements?
1) NiL 2) 5% 3) 15% 4) Nil upto 4 lacs and 5% above that 5) Nil upto 4 lacs and 15% above that
10) A borrower is not submitting the stock statement. After how much period the account will
become irregular?
1) 3 months, 2) 6 months, 3) 9 months 4) 1 month, 5) None of the above.
11) A cheque has been dishonoured and the a competent court has held the drawer guilty. What
is the maximum term of imprisonment that can be awarded by the court for this offence:
1. 3 months2.6 months 3. 12 months 4. 2 years 5. 3 years
12) A firm approaches for issue of demand draft of Rs.62000, by depositing small currency notes
of Rs.5. How the request of the firm would be disposed off:
129
1) draft will be issued by charging higher commission
2) draft will be issued by charging normal commission
3) draft will be issued if the firm is maintaining a bank account with the bank
4) draft will not be issued as the small currency notes are additional work load
5) draft cannot be issued
13) The term 'net block' in the context of a balance sheet prepared by M/s ABC limited stands
for:
1) fixed assets at their original cost 2) current assets at their purchase price less old stock
3) book debts less provision for book debts 4) fixed assets less depredation
5) current assets less current liabilities
14)While appraising a credit proposal, the officer concerned points out to the firm thattheir net
working capital is negative. What does it mean:
1) long term liabilities are more than current liabilities 2) fixed assets are more than long term
liabilities
3) current assets are less than current liabilities 4) current liabilities are more than fixed assets
5) net worth is less than long term liabilities
15) Popular Bank wants to remove its NPAs from the balance sheet by selling the NPAs at a
discount. Under the provisions of SARFAE5I Act who among the following could purchase these
NPAs:
1) foreign companies 2) non-bank finance company 3) joint stock company
4) DICGC & ECGC 5) asset reconstruction & securitisation company
16) What is the minimum age for the purpose of eligibility for additional interest allowed by a
bank, in case of a senior citizen:
1) 55 years 2) 58 years 3) 60 years 4) 65 years 5) discretion of the bank
17) A personal loan of Rs.2 lac has been sanctioned by Popular Bank without obtaining any
security and the borrower fails to repay the loan which became substandard during January 2006.
What will be the amount of provision:
1) Rs.500 2) Rs.800 3) 20000 4)Rs.40000 5) Rs.200000
18) What is the validity of a Kissan Credit Card _ if it is issued for the purpose of disbursement
in a term loan:
1) 2 years 2) 3 years 3) 5 years 4) 7 years 5) such card cannot be issued
19) A farmer needs a loan for purchase of a small tractor of 30 BHP. What is the minimum land
holding criteria:
1) 4 acres un irrigated land 2) 4 acres irrigated land 3) 4 acres land
130
4) 6 acres irrigated 5) at the discretion of the bank
20) A and B have a joint account and they authorise Mr. X to operate the account. On Dec 26,
2005 A expires and a cheque dated Dec 20, 2005 signed by Mr. X is presented for payment on January
26, 2006. How would the bank deal with the cheque?
1) Cheque would be paid as B and X are still alive
2) Cheque would be paid as X who has signed the cheque is alive
3) Cheque would be returned as A has died and authority stands cancelled
4) Cheque would be returned as the cheque is being presented on a bank holiday
5) Payment would be made if B authorises to make the payment
21)What are Hybrid Instruments?
1) Instruments with a mix of debt and equity culture 2) Instruments with a mix of different rate of
interest
3) Convertible instruments (Bonds)
4) Debentures with different maturity( in installments) 5) None of the above.
22) What is "Giga Bites Trillion":
1).A measurement unit of capacity of a Computer 2) A measurement unit of speed of light
3) A measurement unit of speed of water 4) A measurement unit of solar system 5)

None
23) As a general rule while entering 'pass ward' in computer ,under CBS system, which one of
the following is not necessary?
1) Password should be a minimum of 6 characters in length,
2) A password should be mix of alphanumeric characters, 3) A password should be memorized

easily.
4) Due care should be taken to change passwords at periodic intervals 5)All the above are necessary
24) What is the minimum Quorum for conducting Customer Service Committee meeting at
Branch level?
1) 1 2) 2 3) 3 4) 4 5) None of the above.
25)Gresham's Law in economics relates to:
1. supply and demand 2.circulation of currency 3. consumption and supply
4. distribution of goods and services 5. None of the above.
26)What is not included in User-ID:
1)PF Number 2)Initials of name3)Date of Birth .
4) Mix of alphabets and numbers 5) All the above are included.
27) Annual IR of Small & Medium branch should be closed within:

131
1) 30 days 2) 45 days 3) 60 days 4) 90 days 5)None of the above
28) As per the total freedom salary scheme of the bank, what is the maximum amount of OD
available to the accounts holders?
1)5000 2)10000 3) 15000 4) 20000 5) None of the above.
29) Which one of the following committees was associated with legal aspects of frauds?
1) Mitra Committee 2) Saraf Committee 3) S S Tarapore Committee
4) V S Vyas Committee 5) None of the above.
30)A person has operated his locker. Which key shall be applied to close the locker after
operation?
1) Customer's Key, 2) Banker's Master Key 3) Both simultaneously,

4) 1st banker Master Key and then Customer Key, 5) 1st Customer Key and then Master Key.
31) What is the relationship between a Banker and Customer when the later places articles in
safe custody with the Former.
1.Landlord:Tenant 2. Tenant. : Landlord
3. Bailee: Bailor 4. Bailor: Bailee 5. None of the above.
32) You have financed a Car to a company. Where theHypothecation charge will be
registered?
1. Concerned RT A 2. Concerned ROC
3. In the books of the company 4. No registration of charge is required. 5. None
33) Under PNB Insta Remit (RTGS) what are the timings upto which instructions for transfer of
funds can be accepted on the same day on all days except on Saturday.
1. 1.00 PM 2. 3.00 PM 3. 3.45 PM 4. 4.15 PM 5. None of the above.
34) Statement for Progress in Hindi is sent on _____________basis.
1. Fortnightly 2. Monthly 3. Quarterly 4. Half yearly 5. None of

the above.
35) Hindi Diwas is celebrated on
1. 10th December 2. 14th September 3. 1 December 4. 14th November 5. None
36) The premium rate under Whole Turnover Packing Guarantee (WTPCG) of ECGC for our
bank is ____________on average daily product basis.
1. 6 paisa per Rs 1000 2. 6 paisa per Rs 1 00 3. 8 paisa per Rs 1000
4. 8 paisa per Rs 100 5. None of the above.
37) You have an NPA account and outstanding is not above Rs 10 lacs. Despite regular and
constant, follow up the borrower is not repaying. Your higher, authorities have permitted you to file
suit. Where the suit will be filed?
1. DRT 2. DRAT 3. Civil Court 4. Metropolitan Court 5. None of the above.
132
38) When a forged currency note is detected by the bank, it should:
1. Should be destroyed forthwith so that these could not be used again.
2. Should be impounded so that these could not be used again be and branded with a stamp "forged
Note"
3. Should be branded with a rubber stamp "forged note" and be returned to the tendere.
4. Should be returned to the tenderer.
5. None of the above
39) There may be instances when conducting of stock audit may hurt the sentiments of the
borrowers, in that case, the stock audit can be waived provided the borrower has risk rating
of__________.
1. BB & above 2. A & above 3. AA & above 4. AAA 5. Stock audit can not be waived.
40) As per our bank policy, settlement of NPA accounts upto Rs________ lacs be done with the
help of Lok Adalata.
1. 10 2. 20 3. 30 . 4. 40 5. None of the above.
41)Bio-matrix relates with?
1)Character recognition 2)Finger recognition
3)Face recognition 4)Voice Recognition
42)WLL means:
1)Wireless in Local Loop 2)Worthless limited liability
3)Working land Liability 4)Wireless Limited Liability
43)CBS system is :
1)One tire, 2) Two tire, 3) Three tire 4) Four tire
44)Virus in a computer general comes from:
1)E-mail 2)Environment
3) Electricity connection 4) Person operating the computer
45)Which of the following can be considered as part of the batch of the batch proceeding
system?
1) RTGS 2)Salary payrolls
3) Airlines reservations 4)Railway reservations
46) Appeal by aggrieved borrower against decision of DRT to DRAT under SARFAEI Act,
amount of deposit which may be reduced to from ______ to ______
47) Sale of NPA to Bank by another bank - NPA to remain in seller's books_______
48) Under CDR mechanism the consent of minimum creditors by value and number is required
to file case:___________
133
49) Which a/cs under CDR mechanism fall under category I : ________
50) For restructuring of SME units maximum period for viability & repayment: _______
ANSWER
1(4) 2(2) 3(1) 4(3) 5(1) 6(2) 7(3) 8(2) 9(1) 10(1)
11(4) 12(5) 13(4) 14(3) 15(5) 16(3) 17(4) 18(3) 19(2) 20(3)
21(1) 22(1) 23(5) 24(2) 25(2) 26(3) 27(2) 28(3) 29(1) 30(1)
31(3) 32(3) 33(2) 34(3) 35(2) 36(4) 37(3) 38(2) 39(1) 40(2)
41(4) 42(1) 43(3) 44(1) 45(2)
46----50% to 25%
47------: 2 years
48------75%, 60%
49---- Standard & Sub standard
50------7 yrs & 10 yrs
134
1) Bank-B maintained FDR account of X. who has expired. The FDR had matured after his death.
What interest rate would be paid from date of maturity to date of payment to legal heirs:
a. no interest is payable b. interest at saving rate is payable
c. Interest applicable to FDR for the period deposit remained with bank is payable .
d. simple interest applicable to FD for the period, the deposit remained with bank after maturity, is
payable. e. none of the above
2) An NPA has been sold by Bank-B to an Asset Reconstruction Company. What is the minimum
period for which the account should have been in the books of Bank-B before sale to the ARC;
a. 12 months as NPA b. 24 months as NPA . c. 24 months as doubtful account
d 24 months as sub-standard including special mention account status e sale of ARC is not permitted.
3) There is a Trust account and the only trustee dies. What will happen to the cheque issued by
the trustee before death and presented now:
a. cheque can be paid with the permission from court
b. cheque can be paid with the consent of beneficiaries
c. cheque cannot be paid and has to be returned
d. if the cheque is dated prior to his death, it shall be paid
4)Which is not a priority sector advance:
a. loan of Rs.15 lac to a doctor in rural area
b. loan of Rs. 25 lac to SSI not having SSI registration certificate
c.loan of Rs.15 lac to retail trader other than essential commodities d. all the above
5) Garnishee order is not applicable in case of which accounts of A:
a. Credit balance in overdraft limit in his name b. FDR in his name to mature after 2 years
c. Former or survivor joint account in A and B's named. none of the above
6) X and Yare having a joint saving bank account with either or survivor operations. A bearer
cheque is signed by Y and a cutting in the name of payee is confirmed by X:
a. cheque can be paid as alteration has been properly authenticated
b. cheque can be paid even if no confirmed as change is only in name of payee and cheque is bearer
c. cheque cannot be paid as it requires confirmation from the same person who has signed
d. cheque cannot be paid as it requires confirmation from both of them
e. none of the above
7) Under a consortium advance, each banks is required to have minimum___ share out of the
total exposure to the borrowing company:
a. 5% of the fund based limits b. 10% in case of non-fund based limits
135
c. 10% of both the fund and non-fund based limits
d. 15% of the capital fund of the bank concerned
8)Which of the following is correct with regard to repo transaction:
a.banks sell securities to RBI and liquidity is inject in the system
b. RBI sells the securities to bank and liquidity is injected in the system
c. RBI buys the securities from bank and liquidity is absorbed
d. Banks sell the securities to RBI and liquidity is absorbed
e. none of the above
9) An Indian bank opens an account abroad for its business transactions.The account for the
bank with which the account has been opened is called:
a NOSTRO b VOSTRO c.LORO d MIROR
10) Which of the following is true with regard to foreign trade policy in India:
a. FTP announced in 2004 has set a target of increasing India's share of world exports to 1.5% by
31.3.09
b. target for export growth for 2006-07 has been fixed at 20%, in FTP supplement 2006-07
c. FTP supplement 2006-07 lays emphasis on sectors such as jewellery , automobile

components
d. b and c e. a to c all
11)Value dating in foreign exchange means:
a.date when the value is paid irrespective of date of debit to the account
b. date of debit in the account irrespective of the date when the value is paid
c. date when the exchange of currencies is agreed to take place
d a or c e a or b
12)When deposits are transferred from FCNR-B to NRE deposit account,the applicable rate
would be:
a .TT selling rate b. TT buying rate c. Bills selling rate
d. Bills buying rate e. None of the above
13)Difference between the selling and buying rate in case of foreign currency is known as:
a. net margin of foreign exchange b. exchange commission c. spread
d. trading commission e. none of the above
14) In case of pre-mature closure of FCNR account after one year, what is true out of the
following:
136
a no interest should be paid and swap cost can be recovered
b bank can charge penal interest at its discretion
c bank can charge penal interest and swap charges at its discretion
d bank can charge swap charge only e none of the above
15) Bank for International Settlement is located at:
a Basel b Geneva c London d Brussels e Paris
16)Under Gold Card Credit scheme for exports, which of the following is not correct with regard
to disposal of loan application:
a. for fresh cases -25 days b. for renewal - 15 days c. for adhoc - 10 days
d. a and c e band c
17)As per Fiscal Responsibility 'and Budget Management Act, which of the following is correct:
a. Fiscal deficit to be reduced to 3% and Revenue deficit to 1 % by Mar 31,2009
b Fiscal deficit to be reduced to 3% and Revenue deficit to 0% by Mar 31, 2008
c Fiscal deficit to be reduced to 3% and Revenue deficit to 0% by Mar 31, 2009
d Fiscal deficit to be reduced to 2% and Revenue deficit to 0% by Mar 31, 2009
18) In respect of provision for agriculture credit what concession has been. provided in the
Budget 2006-07:
a interest to be charged at 7% for all types of agriculture credit
b concession of interest to be available for upper limit of Rs.3 lac for principal amount
c concession would be available from Khariff 2006-7
d a to c all e b and c
19)A corporate client of your branch wants to distribute dividend to a large no. of shareholders.
Which of the following methods would be most suitable for the purpose:
a. electronic funds transfer b. ECS-credit c. RTGSd. ECS-debit e. issue of demand drafts
20)Modem is used for which of the following purposes:
a. storage of data b. increasing memory of the computer
c. converting digital signals to analog signals and vice-versa
d. sending message in a LAN system e. Conversion of message in a LAN

system
21) Which of the following is not the function of operating system
a. memory management. b. process management
c. file management d. data base management e. none of these

137
22)Hyper text mark-up language is used for which of the following purposes:
a. for sending message in organisation b. for power point presentation
c. for constructing a web-site d. for writing a virus program e. all

the above
23) What is Firewall technology:
a Technology used in putting off industrial fires b Program to protect a network from outside
intrusion
c. Computer program that becomes cause of virus attack d. None of the above
24) What enables computers telephone lines:
a internet connection b mouse c modem d monitor
25)Which of the following kinds of risk is reduced by Real Time Gross Settlement system:
a. credit and settlement risk b. legal and credit risk
c. settlement and systemic risk d. systemic and legal risk e. systemic and credit risk
26) M/s Impex & Co has its registered office in Mumbai, and its factory is at Kolkatta. The
company has availed credit facilities from banks branch in Mumbai. The Equitable mortgage of
company's immovable property is to be created at_______________________.
27) What are the margine requirements for setting up of Agri Clinic/Agri Business centre for
upto Rs 5 lacs?
28) what is the maximum amount of finance that can . be considered under PNB Krishi Card
Scheme?
29) Under PNB Krishi Card Scheme, what is the maximum amount of loan that can be given for
Cash Credit Limits for crop production, consumption needs and working capital for allied
activities?
30) Under PNB Krishi Card Scheme, what is the maximum amount that can be allowed a
consumption loan? '
31)Under PNB Krishi Card Scheme, the payment above Rs ____ lacs be taken from the Card
issuing branch only.
32) The authority under which the bank collect 'supply bills is_____________________
33)Under PNB Krishi Card Scheme, the card issued has validity period of:
34) Under PNB Krishi Card Scheme, upto what amount of investment credit (TL) can be
disbursed in cash?
35) As per Master Policy on Personal Accident Insurance Scheme for KCC holders, what is the
maximum amount that will be given by the Insurance company on death or permanent disability
of the KCC holder?
36) As per Master Policy on Personal Accident Insurance Scheme for KCC holders, if the KCC is
in two names, the premium to be paid to the company will be Rs_____and Rs_____shall be paid
138
by
the bank and Rs_________shall be recovered form the borrower.
37) SME Rating Agency of India Limited (SMERA) nas been set up by:
38)Any collateral free credit facility (FB, TL & NFB) , extended to eligible institutions to a new as
well as existing manufacturing SSI units, SSBEs including IT & software industries particularly
in tiny sector with a credit cap of Rs_______lacs are eligible for a guarantee cover of______ % of
the loan sanctioned with maximum guarantee cap of Rs______ lacs from Credit Guarantee Fund
Trust for Small industries.
39) Small units having investment in Plant & Machinery upto Rs_____engaged in industry
related service business are categorized as Small Scale Service/ Business Enterprises (SSSBEs).
40) Recently bank has amended financing norms for SHG borrowers. Now financing to SHG,
which has completed 3 years from the date of 1st financing, can be considered upto:
41) As per the bank scheme for personal accident Insurance cover to Retail loan borrowers, what
will be amount of compensation
42) Rule based lending, at present is applicable to r' Retail advances covering:
43) What is the name of scheme which our bank has floated to finance dealers and venders of
reputed manufacturing companies?
44) What is the name of PNB's product based on RTGS/NEFT /SFMS?
45) As per our guidelines, borrower enjoying FB limits of above Rs _____ Crores would normally
be under consortium arrangement.
46)The Bank has budgeted to boost advances under Agriculture and SME sector by achieving a
minimum of ______ growth in agriculture and _____ growth in SME sector.
47) The period of guarantee in general should not exceed ________months.
48) On expiry of validity period of guarantee a registered AD notice should be sent to beneficiary
if no reply is received within - from the date of notice, the entries may be reversed.
49) In case the borrower is not in a position to make payment of bill on presentation, the amount
be paid to the debit of .
50)In case of Sugar and Tea Industry working capital limits shall be assessed on the basis
of_____.
ANSWER
1d 2b 3d 4c 5c 6a 7e 8a 9b 10 e 11 d 12 b
13 c 14 c 15 b 16 c 17 c 18 e 19 b 20 c 21 d 22 c 23 b 24 c
25 c
26-Any notified town
27- nil
28- Rs 10 lacs;
139
29- Rs 5 lacs
30- 25% of production credit with a Maximum of Rs 50000/-
31- 3 lacs.
32- Power of Attorney
33- 5 Years
34- Nil. Investment loan is to be disbursed in stages as per the requirements, of the project,
Direct to supplier end use be also verified.
35- Rs 50000/-
36- 30 : 20 : 10. Premium is Rs 15/- per life insured. Ratio of sharing between bank and borrower
is 2:1.
37-SIDBI in association with major banks including PNB.
38-25Iacs : 75% : 18.751acs
39- 10 lacs.
40- 1 to 10 times of their savings.
41- Rs 2 lacs.
42-Housing, Car & Consumer .
43- Supply Chain Financing Product.
44-PNB Insta Remit
45-50 Crores.
46- 30% : 20%
47- 12
48- One month.
49- LC due date default account.
50- Cash budget system.
140
1) What is the lock in period of FDR representing subsidy of SJSRY scheme:
1) 2 years, 2) 3 years, 3) 5 years, 4) No lock in period, 5) None of the above.
2)What is the %age of reservation for SC/ST borrowers in case of SJSRY scheme?
1 ) 22.5% 2) 50% 3) 33% 4) 25% 5) In proportion to their population
3) Provisions of the SRFAESI act are not applicable to any security interest for securing the
amount for repayment
1) Upto & inclusive of Rs 1 lacs, 2) Below Rs 1 lacs,
3) Upto & inclusive of Rs 5 lacs, 4) Below Rs 5 lacs, 5) None of the above.
4)What is the age upto which the repayment can be allowed to a housing loan borrower?
1) 60 years, 2) 65 years, 3) 70 years, 4) 75 years, 5) None of the above.
5) Upto what extent margin is exempted for financing to Agriculture sector?
1) Rs 10000 2) Rs 25000 3) Rs 50000 4) Rs 2 lacs, 5) None of the above.
6)Upto what extent margin is exempted for financing under Kisan Krishi Card ?
1) Rs 10000 2) Rs 25000 3) Rs 50000 4) Rs 2 lacs, 5) None of

the above.
7)Upto what extent margin is exempted for financing to a Agro Clinic?
1 ) Rs 100000 2)Rs 250000 3)Rs 500000 4 ) Rs 200000 5) None of

the above
8) Who decides BPLR of a Bank?
1) RBI 2) IBA 3) Ministry of Finance, 4) Ministry of Commerce 5) Banks Board
9) Under Krishi Card Scheme, consumption loan can be sanctioned at:
1) 25% of the limit sanctioned, 2) Rs 50000 3) (1) or (2) whichever is lower,
4)(1) or (2) whichever is higher 5) None of the above.
10) A trader has approached for sanction of WC limits. Upto what amount the assessment can be
made on the basis of recommendations of Nayak Committee (Simplified turnover method):
1) Rs one Crores, 2) Rs two Crores, 3) Rs Fifty lacs, 4) Rs Five Crores, 5)

None
11) Who among the following cannot open a saving bank account:
1) X, who is also a partner of a firm ABC, 2) Y, who is also a director of a company
2) T, who is also a Trustee of a Trust 3) A proprietorship firm of A
5) M, a minor boy who could sign and is 15 years of age.
12 ) In which of the following situations a loan account is treated NPA:
1) when the interest is being with some delay

141
2) when the stock report is being submitted with some delay
3) when the bills discounted are retired with some delay
4) when the amount of principal is paid with some delay 5)none of the above
13)Who can't be nominated out of the following:
1) minor of 5 years 2) the mother of the depositor with 90 years of age
3) the father of the depositor residing in Landon
4)the trust in which the depositor is one of the trustee.
14)There is a Trust account and the only trustee dies. What will happen to the cheque issued by
the trustee before death and presented now:
1) cheque can be paid with the permission from court
2) cheque can be paid with the consent of beneficiaries
3) cheque cannot be paid and has to be returned
4) if the cheque is dated prior to his death, it shall be paid
15) A&B have joint a/c. They give power of attorney to C to operate their a/c. You received
information about B's death, You receive a cheque signed by C. What you will do.
1) you will pass cheque, as one of account holders is still alive.
2) you will return cheque as after the death power of attorney has been cancelled
3) you will pass the cheque if it is date prior to death of the account holder
4) you will pay the cheque as the agent is still alive.
16) Following is not true as regards SGSY
1)the group size cannot be between 10-20
2) group should have bank linkage for at least 6 months
3) group should be of below poverty line in which members maximum up to 30% can, be above
poverty line person
4)none of the above
17)What is the most correct in regard to subsidy under SGSY for a group.
1)Maximum Rs. 1.25 lac 2)Maximum Rs. 1.50 lac
3) Maximum Rs.1.25 lac but per member should not be above Rs.10000
4) Maximum Rs.1.25 but per member should not be above Rs.5000
18) Under Sec 45 ZA which a/c is covered for nomination:
1) saving bank deposit account in A's name 2)Safe deposit in B's name
142
3) Current account of ABC , a partnership 4) Locker account in Z’s name
19) Which of the following has been withdrawn through Budget 2006-07 :
1) Banking cash withdrawal tax 2) security transaction tax
3)1/6 scheme of filing of income tax returns 4) service tax reporting
20) What is the minimum capital requirement under Basel II:
1) 6% 2)8% 3)9% 4)10%
21) Two cheques issued by a customer on Jan 12, 2008 are dated as Jan 27, 2008 and dated
January 02, 2008. Such cheques are called:
1 ) Stale cheques 2) Post dated cheques 3) Ante-dated cheques
4) Ante- dated and post dated respectively 5) Post dated and ante- dated respectively
22) A bill is payable 3 months after sight. The bill is dated Feb 24, 2006. It is presented for
acceptance on Feb 28. What would be its due date?
1) June 03 2) May 27 3) May 30 4) May 31 5) None of the above
23)What is India's share in World Exports?
1)Less than 1 % 2) 1% . 3) 1.5% 4) 2% 5)None of the above.
24) Normal period of packing credit is 180 days and it can be extended by Banks upto days
without approval of RBI.
1)270 2)360 3) No limit,

4) Banks are not allowed to extend beyond 180 days, 5)None of the above.
25) Transferable letter of credit can be transferred _______times.
1) Once 2) Two 3) Three 4) Four 5) Without any limit
26)The Govt will provide subsidy @ of _______% of the fee for getting the SSls rated themselves.
1) 25 2) 50 3)75 4) 90 5) None of the above.
27) In terms of RBI directives, in how many days, deceased accounts have to be settled by Banks:
1) 7 2) 15 3) 21 4) 30 5) 45
28) Income tax refund orders have validity period of:
1) 3 months 2) 6 months 3) 1 Year 4) Unlimited 5) None of the above.
29) What is the time period for which the record are required to be maintained under KYC
guidelines of our Bank?
1) 3 Years 2) 5 Years 3) 7 Years 4) 8 Years 5)

10 Years
30) In flexible recurring deposit account, interest is paid on:
1) Minimum balance between 151 to last day of the month,
143
2) Minimum balance between 1st to 10th day of the month,
3) Minimum balance between 10lh to last day of the month,
4) Minimum balance between 151 to 9th day of the month, 5) None of the above.
31) A borrower is not submitting the stock statement. After how much period the account will
become irregular?
1) 3 months, 2) 6 months, 3) 9 months 4) 1 month 5) None of

the above.
32) In which of the following, opening of Joint account with a resident is permitted:
1) FCNR(B) 2)NRE 3) NRO 4) NRNR 5) All the above.
33) CAD(O) monitors all weak accounts' under standard category with outstanding of Rs 50 lacs
& above on __________basis.
1. Weekly 2. Fortnightly 3. Monthly 4. Quarterly 5. None of the above.
34) As per the model deposit policy of I BA, what is the legal capacity of nominee while taking
payment on the behalf of legal heirs of deceased depositors?
1. Owner 2. Trustee 3. Beneficiary 4. Agent 5. Principal
35) A customer is having FDR of Rs 50 lacs in your bank which is to mature on 12/6/06. On
20/6/06 the borrower expired and nominee approached' for payment on 20/6/06. What are the
guidelines regarding payment of interest on deceased term deposit accounts.
1. Interest will-be paid at contracted rate till maturity and No interest be paid thereafter.
2. Interest will be paid at contracted rate till maturity and simple interest (as applicable to term deposits
on maturity) be paid thereafter.
3. Interest will be paid at contracted rate till matwity and simple interest (as applicable to term deposits
on date of payment) be paid thereafter.
4. Interest will be paid at contracted rate till maturity and SF rate (as applicable on the date of maturity
) be paid thereafter.
5. None of the above.
36) As per the Monetary Policy, what is the projected growth of money supply during 2006-07?
1. 16.2% 2. 15.0% 3. 14.6% 4. 13.5% 5. None of the above.
37) Which one of the following is not among the Pillars of Basel-II for Capital adequacy in Indian
Banks?
1. Minimum Capital Requirement 2. Supervisory Review Process
3. Market Discipline 4. Risk Ratings of entire portfolio of banks
FIRM-A FIRM-B FIRM-A FIRM-B

CAPITAL 600 600 F. DEPOS 950 800
RESERVE 100 200 FURN. 400 300
S/CREDIT OR 1250 950 CASH 200 300
144
B/PAYAB LE 100 200 S/DEBTO RS 900 1000
T. LOAN 500 600 GOODWIL 100 100
38) What is the difference between TNW of Firm A & Firm B?
1. 100 2. 200 3. 50 4. 150 5. None of

the above.
39) Which firm has the ideal current ratio?
1. Firm A 2. Firm B 3. Both Firms 4. None of the Firms 5. Can not be

determined
40) What is the difference between NWC of both the firms?
1. 150 2. 300 3. 450 4. 600 5. None of

the above
41) What is Rescue Disk?
1)It protects the computer from electric shocks, 2)It protects the computer from virus
3)It protects the memory unit of Hard disk 4)it protects application software from unauthorized users.
42) What is Disaster Recovery Center?
1)Recovery center for Retail Loans 2) Recovery center for chronic NPAs
3)A computer back up center 4)A cash backup center
43) What is the best method to secure data of a computer?
1) Protection from Virus 2) General Cleanness of Computer
3)Regular backup of data 4)Regular power supply to a computer
44) The term CHIPS is the abbreviation of which of the following:
1)Center hub for interbank payment system 2) Center of high interbank payment system
3) Clearing house for interbank payment system 4)Center for high international payments
45) Which part of the computer takes care of data storage?
1)Storage bin 2)Storage unit
3)Arithmetic Logic Unit 4)Central processing unit
46) Service area abolished max. radius of operation:.______________
47) Farmer club two key persons: _________________
48) Under LIC what is the NTP period: _____________________
49) Under LC maximum period available with issuing bank to take decision whether to take up
documents or .at: ___________________________
50) Venture capital exposure what is the risk weight: __________________
145
ANSWER
(1) 2(5) 3(1) 4(2) 5(3) 6(4) 7(3) 8(5) 9(3) 10(2)
11(4) 12(5) 13(4) 14(4) 15(2) 16(1) 17(3) 18(1) 19(3) 20(2)
21(5) 22(1) 23(1) 24(2) 25(1) 26(3) 27(2) 28(1) 29(5) 30(3)
31(1) 32(3) 33(4) 34(2) 35(4) 36(2) 37(4) 38(1) 39(2) 40(2)
41(2) 42(3) 43(3) 44(3) 45(2)
46----25 km besides boundary 47------: Coordinator & Dy. Co-ordinator
48---- Negotiation of documents to date of credit to nostro a/c prescribed by FEDAI
49---- 7 banking days bank
50------150%
1)Rate of Tax deducted at source on Interest on FDR in case of individuals and HUF:
a. 10% for individuals and 20% for HUF b. 20% for individuals and 10% for HUF
c.10% both for individuals and HUF d. 20% both for individuals and HUF
2) A&B, husband & wife, have separate Saving Bank alc in your bank. B comes to your bank and
requests for information about balance in account of A. How you will deal.
a. you should disclose balance as she is wife
b. you should disclose information as there is no dispute amongst them
c. you can not disclose and will not accept her requestd. you will inform A about this.
3) What do you mean by net block, in the balance sheet of a partnership firm:
a. Original cost of fixed asset - depreciation b cost of fixed assets + depreciation
c. current assets - current liabilities d. net worth - intangible assets.
4) A bank has failed to meet its obligation on account of a payment on due date due to its
inability to pay. What kind of risk it is:
a. credit risk b. liquidity risk c. settlement risk d. payment risk e. all the
above
5) Banks cannot issue DO payable to bearer due to provisions of law as contained in:
a. Section 85 A of N I Act b. Section 5 of N I Act c. Section 31 of RBI Act
d Section 31 of Banking Regulation Act
6) A&B have joint a/c. They give power of attorney to C to operate their a/c. You received
information about B's death. You receive a cheque signed by C. What you will do.
a. you will pass cheque, as one of account holders is still alive
b. you will return cheque as after the death power of attorney has been cancelled
c. you will pass the cheque if it is date prior to death of the account holder
d. you will pay the cheque as the agent is still alive.
146
7)Following is not true as regards a normal SGSY self help group:
a. the group size can be between 5-25. b. group should have bank linkage for at least 6 months
c. group should be of below poverty line in which members maximum up to 30% can be above poverty
line person d. none of the above
8) Reply is required to be given under Right to information Act in maximum within ___ days.
Who can seek information:
a 10 days, any person residing in India b 15 days, any person
c 20 days, resident Indian, d.30 days, Citizen of India
9) Good will in the balance sheet of a firm is recorded as:
a. Contingent liability b. Current assets c. Non-current asset d. Fictitious asset
10) Where a bank is having un-reconciled inter-branch entries old than___,it has to make provision at _
%
a. 6 months, 100% b. 6 months, 75% c. 12 months, 100% d. 18 months, 100%
e. no provision is required, entries being intra-bank
11)X has made payment to Y in cash. Stamp duty of Rs.1 is payable on the money receipt if the
amount is one of the following:
a. above Rs.500 b. above Rs.2000 c. above Rs.2500 d. above Rs.5000
12)A loan account of a com_. has been adjusted. The particulars of satisfaction of charge are to the
filed with ______ within______ of date of satisfaction of charge:
a.ROC, 30 days b. ROA, 30 days c. ROA, 15 days d. ROC, 15 days
13)Bank was having a current account and party requests for closure and transfer of account to
other branch. Later on a cheque issued by the party is presented and bank returns it with memo 'refer to
drawer'. Party claims damages from the bank:
a party has issued a wrong cheque. Hence party liable
b. bank has given wrong reasons. For loss to party, bank is liable
c. bank is not liable and refer to drawer is not a damaging memo
d. bank is not liable since the account is already closed.
14) What is max amount of deposit for Senior citizen scheme and what is interest rate:
a. 15 lac, 9% simple b. 20 lac, 8% simple
c.15 lac, 9% compound d.5 lac, 9%
15)Who can’t be nominated out of the following:
a. a minor of 5 years b. the mother of the depositor with 90 years of

age
c. the father of the depositor residing in Landon d. the trust in which the depositor is one of the trustees
147
16) What is max housing finance under priority sector for construction of house and repair in
rural area:
a. 10 lac, 1 lac b 10 lac, 2 lac c.15 lac, 1 lac d. 15 lac, 2 lac
17) What are maximum exposure norms for individual and borrowing group other than for
infrastructure in case of bank board discretion:
a. 15%,40% b. 20%, 45% c. 20%, 50% d. 250/0, 55%
18) In which of the following the parents/head of the family is associated as a co-borrower in a
PMRY loan:
a where the borrower is minor b where the borrower is handicapped
c where the loan is given to a women d.where the loan is given to an unmarried women
e. in all the above cases
19) What is the time period prescribed by RBI for preservation of records under Prevention of
Money Laundering and what is the time period during which suspicious transaction report is to be sent
within , days of detection:
a 2 years, 15 days b 4 years, 12 daysc 5 years, 10 days d 10 years, 7 day e 12 years, 7 days
20) Provision on standard accounts is kept in balance sheet of the bank as part of:
a Statutory reserves b Capital reservesc Revenue Reserves

d. Other liabilities and provisions e. Contingencies and provisions
21)There is joint current account of A and B. There is another account of partnership firm.
BCTT in these cases is applicable in case of cash withdrawal of :
a. Rs.25000 and Rs.1 lac respectively b. above Rs.25000 and above Rs.1 lac
respectively
c. above Rs.50000 in case of joint accounts and above Rs.1 lac for partnership account
d. not applicable on account of A and B but applicable in case of partnership firm's account
22)In one cheque, in the crossing, words 'Indore' are written. The cheque is presented in
Mumbai:
a Cheque should be presented in Indore only b Cheque should not be paid in Mumbai
c. Cheque can be presented in Mumbai and shall be paid.
d Cheque can be paid if the collecting bank provides indemnity.
23) A fraud of Rs. 7 cr involving a borrowing party has taken place in branch X of the bank. The
fraud is required to be reported to which of the following:
a. Banking Security and Fraud Cell of CBI b Local police station .
c Banking Fraud Cell of RBI d Economic Offences Wing of State Police e all the above
24)What is the investment criteria for plant and machinery in case of SMEs:
a. above Rs.1 cr and up to Rs.5 cr b. above Rs.1 cr and up to Rs.10 cr
148
c. above Rs.5 cr and up to Rs.10 cr d. above SSI but up to Rs.10 cr
25) Under turn over method of Nayak Committee and cash budget method, what is maximum
amount of working capital limit, that could be sanctioned to SSI units:
a 1 cr, 3 cr b.9cr, 5 cr c. 5 cr, no ceiling d 10 cr, no ceiling
26) In terms of Rupee Drawing Arrangement (RDA) entered into by the bank, the maximum
limit for a single draft which can be issued by EH is Rs_______ lacs and threshold limit for
payment of draft without advice is Rs _________lacs.
27) Within how many days application of a Gold Card holder for sanction of. adhoc limit be
disposed off:
28) A gold card can be issued for a period upto:
29) Recently, Govt has permitted opening of Joint account of pensioners to be operated by
Former or survivor or on either or survivor basis.
30) The minimum amount of deposit into/withdrawal from currency chest will be Rs
________and
thereafter in multiple of Rs__________.
31).Tax deducted on account of salary should be deposited____.
32) Return of service tax is to be filed with concerned Superintendent of Service tax on___
basis.
33)Issuance of Demand Draft. Cash Order, Mail Transfer can be done with the single signatures
if the amount is
34)Non CBS Branches are authorised to issue a single draft of Rs______only and to meet the
genuine requirements of the valuable' clients proposals should be sent to ______ for
consideration on merits.
35) CBS Branches are authorlsed to issue a single draft of Rs____ on any other CBS Branch
and of Rs_______on any other non-CBS Branch.
36) As per the extent guidelines, Revenue audit report of Small/Medium/Large branch be got
closed, within _______ days and within _______ in case of VLB/ELB.
37) A customer has deposited Rs 100 lacs in ordinary fixed deposit account for a period of 30
days on 15th March 2006. As per the revised system, the interest will be paid on_______.
38) As per the amendment carried out in section 40 of Income tax act, the TOS on interest of
deposits be deducted on basis if the amount of interest is Rs 5000 and above in a financial year.
39) Withdrawal forms of CBS branches can be used for the purpose of withdrawals at_____.
40) Where a person transacting is minor and does not have any income chargeable to income
tax,
he/she shall have to quote the PAN of his father or mother or guardian. The statement is true or
false.
41) Persons who are having their income chargeable to tax but are not having any PAN number,
should make declaration on form no:
149
42) Minimum period, for which an introducer must maintain his/her account to become eligible
for introducing account of another prospective customer, has been reduced from the exiting
period of______ to ________visually impaired customer can designate
43) As per the guidelines, an out of pocket expenses of Rs________ be recovered either in cash or
to the debit of his account for verification of address.
44) Opening and operation of deposit accounts other than____can be independently allowed to
the minors of the age of ___ year and above after obtaining satisfactory proof of age and other
relevant documents.
45) Accounts of Non residents residing in High & Medium risk countries should
46) Trusts, Charities, NGOs, Religious/social organizations receiving donations are classified as:
47) Negligible risk customers are the customers which.
48) Existing score based rating system of the branches has been replaced with:
49) What is the name of bank's website for recording complaints.
50)What are the margin requirements for agriculture products/investment credit upto Rs.50000?
ANSWER
1c 2c 3a 4c 5c 6b 7a 8d 9d 10 a 11 d 12 a
13 b 14 a 15 d 16 c 17 b 18 d 19 d 20 d 21 b 22 c 23 a 24 d
25 c
26- 10 lacs: 1 lacs.
27- 7 days (15 days for other exporters)
28-3 years
29- Spouse, in whose favor authorization for family pension exists.
30 1 lacs: Rs 50000/-
31- within one week from the last day of the month in which tax is deducted.
32- Half yearly, by 25th of month following the particular half year.
33- Upto 25000/
34- Less than Rs 10 lacs: ZM
35- Without any Limit: Less than Rs 10 lacs.
36- 45 days: 3 months.
37- 31st March, for the period the FOR has actually run (Broken period), on contracted rate of
interest, after deduction of TOS, if applicable.
38- Quarterly (Calendar quarters June, Sept, Oct and March)

150
39- Base branch only.
40- True .
41- 60
42-One year: Six months.
43- 50/-
44- Current account : 10
45- not be opened at all.
46- High risk customers.
47-intends to keep balance not exceeding Rs 50000/ and total credit summations in all accounts
do not exceed Rs 1 lacs a year.
48- Risk based internal audit system, w.e.f 1/1/06.
49- www. sparshpnb.com
50- Nil
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1) What is' the maximum amount of loan under scheme for purchase of land to Agriculture
Graduates?
1) Rs 2 lacs, 2) Rs 5 lacs, 3) Rs 10 lacs, 4) Rs 25 lacs 5)
No ceiling
2)Which one of the following is Intangible Asset?
1 ) Pre-paid expenses, 2) Accumulated Losses 3) Goodwill
4) Development Expenditure. 5) Share issue expenses.
3)Garnishee order operates when relationship between banker and customer is that of:
1) Debtor: Creditor 2) Creditor: Debtor 3) Trustee: Beneficiary
4) Beneficiary Trustee 5) None of the above.
4)What is the maximum amount of loan to pensioners?
1 ) Rs 60000 2) Rs 75000 3) Rs 100000 4) Rs 48000 5) None of the above.
5)Tangible Net Worth (TNW) is:
5)Short term borrowings and Long term borrowings,
2) Capital and Long term borrowings, 3) Owner's funds less Intangible assets,
4) Long term sources, 5) None of the above
6)As per the draft guidelines of RBI on sale purchase of NPAs, the purchasing bank may classify
the NPA purchased as 'standard' for a period of______ days from the date of purchase.
1) Nil 2) 90 3) 180 4) 240 5) None of the above.
7) In the case of issue of TDR/issue of Drafts, the PAN/GIR number is required for amount:.
1) Exceeding 50000 2) Rs 50000 & above, 3) Exceeding 20000
4) Rs 20000 & above. 5) None of the above.
8)X, Y & Z are joint executors to the estates of W. A cheque signed by X was issued, for which
stop payment instructions can be given by______and these instructions can be revoked by__________.
1) X,X 2) Anyone, Anyone, 3) Anyone, X 4) X, Anyone, 5) Anyone, All
9) A has been sanctioned housing loan of Rs 15 lacs by B branch. He had met with a serious
accident and has been admitted to the Hospital. He want disbursement of loan, can he create Equitable
Mortgage?
1) Yes, if property is in notified area, 2) Yes, if branch B is in notified area,
3) Yes, if property, Hospital and branch B is in notified area
4) Yes, if Hospital and the branch where EM is to be created are in notified area.
5) No, his personal visit to the branch where EM is to be created is necessary.
10)To which of the following limits a charge, under section 125 of Companies act is not
required:
1) Packing Credit, 2) Hyp of stocks, 3) Assignment of Book Debts,
4) Bill discounting limit, 5) On all the above, charge registration is required
11) Which export declaration forms are used for exports other than by post:
1) GR form 2)SDF Form 3) Softex Form 4) all the above
12) In case of partnership firms, BCTT is applicable in case of cash withdrawal of:
1)above Rs.25000 2) above Rs.1 lac 3) Rs.25000 4)not applicable on partnership
firm
13) KYC record to be maintained for transactions of :
1) Rs.10 lac only in cash 2) Rs.10 lac only in cash or transfer
3)more than Rs.10 lac in cash or transfer only 4)Rs.10 lac or above in cash
14) A loan account of a company has been - adjusted. The particulars of satisfaction of charge are
to the filed with _____ within_______ of date of satisfaction of charge:
1) ROC, 30 days 2) ROA, 30 days 3) ROA, 15 days 4) ROC, 15 days
15) Bailment. is used in which of the following:
1) lien 2) set off 3) assignment 4) mortgage
16)Unclaimed deposit with a firm would be shown in their balance sheet as:
1) Current asset. 2)Contingent liability 3)Intangible assets 4)current liability
17) Validity period of cheque is 6 months filed with ROC under which Act
1)N.I.Act 2)Banking Regulation Act 3)Companies Act 4)nowhere,it is a practice only
18) What is a mismatched note:
1) one part of note joined with part of note of another note .
2) a note is cut vertically in the center and joined it.
3) some part of note is not coloured 4)one side of note is not coloured
19) What is amount of stamp duty payable on a demand bill of exchange:
1) Rs.1 2) 0.50p
3) 0.05p 4) none
20. Which one is not under priority sector for Indian banks
1) Export credit 2) Agri Adv 3) SSI Adv 4) None of the above
21)What is the minimum income limit for issue of ATM - cum - Debit card?
1) Rs 60000 p.a. 2) Rs 45000 p.a. 3) Rs 1,20,000 p.a. 4) Nil 5) No minimum limit
22)What is the highest rating as per our risk rating module?
152
1) AA 2) AA+ 3) AAA 4) AAA+ 5) None of the above.
23) Stamp duty on money receipts is required if the amount of money received is:
1) Rs 500 & above 2) Exceeds Rs 500 3) Rs 5000 & above 4) Exceeds Rs 5000
5) None of the above.
24)What is 'Hot Listing' in ATMs?
1) A TM cards issued to prime clients of the bank, 2) Listing of last 3 withdrawals of ATM
3) ATM cards listed with prime, departmental stores for direct debit to the customer's account on
purchases.
4)Listing of lost ATM cards with data center 5) None of the above
25) The amount of credit facilities granted to Arthiyas/commission agents etc should not exceed
of sales turnover.
1) 2/3rd to 1/4th 2) 1/6th to 1/4th 3) 1/4th to 3/4th 4) 1/4th to 2/3rd 5) None of the above.
26) As per the scheme for purchase of land by farmer, what is the gestation period that can be
allowed & what should be the total repayment period.
1. 2 years: 7 to 9 years 2. 2 years : 5 to 7 years 3. 2years : 7to12years
4. 2 Years: 9 to 12 years 5. None of the above.
27) As per the Kisan Ichacha Purti scheme, the maximum loan can be Rs ______.
1. 5 lacs 2. 10 lacs 3. 3 lacs 4. Need Based 5. None of the above.
28) Under SME scheme ______% of the aggregate limits sanctioned with a maximum of Rs
______lacs can be sanctioned as additional limit to meet the contingent requirements.
1.10% : 25 2. 25% :10 3. 20% : 25 4. 25% :25 5. 10% : 20
29) In Locker accounts what is maximum number of operations allowed and what are the charges
per operations having exceeded that limit?
1. 24 : 35 2. 24 : 50 3. 50 : 35 4. 50 : 50 5. None of the above.
30) Under PNB Met life Insurance cover scheme, the age of beneficiary at the time entering into
the scheme should not be less than______________ and should not be more than_________
1. No minimum age : No maximum age 2. 18 Years : No maximum age
3. No Minimum age : 64 years 4. 18 Years : 65 years
5. 18 Years : 64 years
31) What is the rate of interest payable on eligible CRR balances?
1. 3.5% 2. Bank Rate 3. Reverse Repo rate 4. Nil 5. None of the above.
32) As per Master Policy on Personal Accident Insurance Scheme for KCC holders, premium
paid is being shared between Bank and Borrower in the ratio of:
1) 2 : 1 2) 1 : 2 3) 2 : 3 4) 3 : 2 5) 1 : 1
33) House loan upto Rs_________ sanctioned in Rural Area under Rural Housing Scheme
of NHB for repairs is under Priority sector.
1 ) 2 lacs 2) 5 lacs 3) 1 lacs 4) 500005) None of the above.
34) Normal period of packing credit is 180 days and it can be extended by Banks upto____days
without approval of RBI.
1.270 2. 360 3. No limit, 4. Banks are not allowed to extend beyond 180 days,
5. None of the above
35) Under PNB Met life Insurance cover scheme,what is the amount of maximum/minimum
cover?
1. 3 lacs : 1 lacs 2. 51acs : 3 lacs
3. 3 lacs : 2 lacs 4. 10lacs : 3 lacs 5. None of the above.
36) As per the revised estimates released by CSO, what is the growth rate at which Indian
Economy is expected to grow during 2005-06?
1) 8.5% 2) 7.5% 3) 6.9% 4) 8.4% 5) None of the above.
37) Under' PNB -Fin basket scheme, minimum amount of loan, as a package should be Rs 5 lacs
& minimum loan for housing should be Rs 2 lacs. Which one of the following is not covered under the
scheme?
1. Car Loan 2. Consumer Loan
3. Personal Loan 4. Education Loan 5. None of the above.
38) Per day limit for withdrawal from ATM is Rs_______ and Rs_______by way of Point Of
Sales (POS) transactions.
1. 5000: No Ceiling 2. 5000: 20000
3. 15000 : 25000 4. No limit: No limit 5. None of the above
39) What is Broad Money?
1. M1 2. M2 3. M3 4. M4 5. None of the above.
40) What are the charges for revalidation of Demand Drafts?
1. Rs 50 2. Rs 100 3. Rs 150 4. Rs 200 5. None of the above.
41) Which of the following takes care of processing of the information in a computer system:
1) ALU 2) CPU 3) Storage unit 4) Control unit
42) Which of the following terms describes the computer programs better:
1) Hardware instruction 2) Input devices
153
3) Output device 4) Software.
43)Which of the following devices is used for reading an answer sheet by means of light:
1) OMR 2) MICR 3) OCR 4) CHIPS
44) Which of the following is the part of binary number system:
1) ABC 2 ) a1035 3) 160 4)1010
45) A bootable disk is a devices whose function is to :
1) Load OS into RAM 2) Load any software into storage unit
3) Load Application program to HDD 4) A floppy disk of a very special kind
46) Risk weight of HIL & credit card/Consumer Loan: _________________
47) Penalty under Right of information Act per day and max. If information not provided within
30 days: _________________
48) Bouncing of cheque maximum period of imprisonment under Sec. _______________
49) Cash payment of FD is made by incumbent for Rs. 20000/- and above. Maximum
imprisonment as per IT Act: _________________
50) For action under SARFAESI consent of Consortium: _____________
ANSWER
1(2) 2(3) 3(1) 4(3) 5(3) 6(2) 7(2) 8(5) 9(4) 10(4)
11(4) 12(2) 13(4) 14(1) 15(1) 16(4) 17(1) 18(1) 19(4) 20(1)
21(5) 22(3) 23(4) 24(4) 25(2) 26(3) 27(2) 28(3) 29(1) 30(5)
31(4) 32(1) 33(4) 34(2) 35(1) 36(4) 37(2) 38(3) 39(3) 40(2)
41(2) 42(4) 43(1) 44(4) 45(1)
46----75 & 150% 47------: 250 per day max.25000. 48.---- 138 of NI act: max. 2 years
49---- 7 years 50------75% by value (O/S)
154
1) A has deposited with the bank Rs 5 lacs for onward remittance to B through bank draft. What
is the relation between Bank and A?
1) Creditor and Debtor 2) Debtor and Creditor 3) Agent and Principal
4) Principal and Agent 5) None of the above
2)TDS deducted on FDRs be deposited with the Income Tax department
1) Within 7 days from the last day of the month in which the deduction is made.
2) Within 7 days from the last day of the quarter in which the deduction is made.
3) Within 10 days from the last day of the month in which the deduction is made.
4) Within 10 days from the last day of the quarter in which the deduction is made.
3) In terms of RBI guidelines, Banks exposure a single borrower can be 15% of its capital funds.
The exposure can go upto 20% if:
1) The additional 5% is on account of infrasctrue financing,
2) Total 20% is on account of infrasctrue financing,
3) Borrower is engaged in infrasctrue development work,
4) At least 51 % of the exposure is for infrasctrue financing.
5) At least 51 % of the total project cost is for infrasctrue requirements
4) How PNB Joy is a different scheme from the schemes of personal loans floated by other
banks?
1) It offers higher amount as loan, 2) It offers lower interest as well as EMI
3) It offers loan to working couples, 4) It offers longer repayment
5) What is ,the minimum salary of a teacher to ' become eligible for PNB Privilege Card?
1) Rs 5000 2) Rs 10000 3) Rs 15000 4) Rs 7500 5) None of

the above.
6)What is the %age of recovery that a branch should have for financing personal loan to a
borrower who is not drawing salary from the branch?
1 ) 100% 2) 98% 3) 97% 4) 95% 5) 80%
7) In which one of the following cases permission from higher authority is not required for taking
over from other banks?
1 ) Personal Loan 2) Car Loan 3) Housing Loan 4) Loan against mortgage of IP
5) All the above.
8)Rate of Interest on Savings deposits is decided by:
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1 ) ALCO committee of the bank 2) RBI 3) IBA
4) Govt of India on the recommendations of RBI 5) RBI on the recommendations of IBA
9)In case of PMRY advances family income, should be up to Rs.________ per annum of the
beneficiary; the beneficiary and spouse together, if married and up to Rs.______per annum of parents
of the beneficiary separately whether the beneficiary is staying separately or with the parents.
1 ) Rs 40000 : Rs 40000 2) Rs 40000 . Rs 1 lacs 3) Rs 40000 : Rs 80000
4) Rs 40000 . Rs 1.25 lacs 5) None of the above.
10) The risk that arises to a bank due to failure of to internal process is called:
1 ) Operational risk, 2) Transaction risk, 3) Liquidity risk, 4) Process risk 5) None of

the above
11) A company is required to get its charge filed with ROC within:
1) 30 days from date of sanction 2) 30 days from date of documentation
3) 30 days from date of first disbursement 4)30 days from date of last disbursement
12)Which of the following is a situation of negative net working capital
1) Current assets are more than Current liabilities 2) Current liabilities are more than current
3) Net-worth is more than intangible assets 4) Fixed assets are more than net worth.
13) A customer of your branch, has pledged goods in the bank and he had some dues of tax
authority. You received an order from tax authority for such good:
1)You will not hand over good to them 2)You will handover goods to tax authority
3)tax authorities have prior charge 4)tax authorities can demand the goods b on pro-rata basis
14) Safe deposit locker can not be opened by which of the following:
1) HUF 2)Firm 3)Minor 4)Trust
15) Credit card money is known as:
1)Hard money 2) soft money 3) plastic money 4) none
16) Good will in the balance sheet of a firm is recorded as:
1) contingent liability 2)current assets 3)non-current asset 4)fictitious asset
17)Reply is required to be given under Right sell to information Act in maximum within days:
1)10 days 2)15 days 3)20 days 4)30 days
18) In case of education loan, for how much amount party guarantee cannot be asked for:
1)up to Rs.2 lac 2) up to Rs4 lac 3)up to Rs.7.50 lac 4)no ceiling
19) Banks cannot issue DD payable to bearer due to provisions of law as contained in:
156
1) Section 85 A of NI Act 2)Section 5 of NI Act 3)Section 31 of RBI Act
4) Section 31 of Banking Regulation Act 5)Section 85 A of NI Act
20) What is over night position?
1)The trading taken place overnight. 2)A limit on the maximum open position left overnight, in all
major currencies. 3)Both (1) & (2) 4) None of the above.
20) The right of the customer to buy the option is called?
1)Put option 2)Call Option 3)(1) & (2) both 4)None of the above.
21) A Bank wants to sell its NPA to some other bank. What is the age criterion which is to be
fulfilled before selling it off?
1) The account should be in sub-standard category for a minimum period of 2 years.
2) The account should be in the books of bank for a minimum period of 2 years irrespective of the
category to which it belongs.
3) The account should be in NPA category for a minimum period of 2 years & total age of the account
should be at least 5 years.
4) The account should be in NPA category for a minimum period of 2 years 5) None of the above
22) As per the existing guidelines, commitment charges @ of _____are charged to the borrowers
having sanctioned FBWC limits of Rs _______& above.
1. 1 % : 1 Crores 2. 0.60% : 5 Crores 3. 1% : 5

Crores,
4. 0.30% : 1 Crores 5. None of the above.
23) As per Master Policy on Personal Accident Insurance Scheme for KCC holders, what is the
maximum amount that will be given by the Insurance company on death or permanent disability of the
KCC holder?
1. 25000 2. 50000 3. 75000 4. 100000 5. None of the above.
24) A partnership firm has approached for term loan of Rs 100 lacs. On scrutiny of the
partnership deed you find that one of the partners is a HUF. As per the recent guidelines circulated by
the bank, what will be your decision?
1. It can enter into a legal partnership without any restriction. .
2. It can not enter,into a legal partnership
3. It can enter into a legal partnership provided total members HUF and total partners are not in excess
of the limit as stipulated by the Indian companies act.
4. It can enter into a legal partnership provided total number of partners including HUF as a partner are
not in excess of the limit as stipulated by the Indian companies act.
25) Housing loan granted in Urban/Metro area up to Rs_____is treated as priority sector
advance.
157
1) 10 lacs 2) 15lacs 3) 5 lacs . 4) Irrespective of any limit 5)None of the above.
26) To become eligible for finance under our bank’s scheme of advance to self employed persons
engaged in Small Business, the cost of equipment used (excluding land and building) should not
exceed Rs ________lacs.
1. 10 2. 20 3. 50 4. 100 5. No ceiling
27) ADs are allowed to repatriate proceeds of sale of IP situated in India, which is sold after
holding for a period exceeding______ years and .within the maximum ceiling of_____per
calendar year.
1. 10: USD 1 million 2. 7: USD 1 million 3.10: Rs 1 million 4.7 :Rs 1 million
28) Charges for replacement of damaged/destroyed card are Nil and charges for issuance of
duplicate card in case of lost card are at Rs ______.
1. Nil 2. 225 3. 275 4. 350 5. None of the above.
29) As per PNB education loan scheme interest during moratorium period is debited to:
1) Loan account of the borrower, 2) Saving account of the borrower,
3) Intt accrued on . advances under Education Loan 4) Interest being simple, to be levied only
on commencement of repayment. 5) None of the above.
30) As per personal loan scheme of the bank, the minimum net monthly income at Urban.
Centers except for Teachers, para military personnel, (whose salary is being credit and disbursed
through our branch) is:
1. 5000 2. 7000 3. 100004. 9000 5. None of the above.
31) What are the minimum balance/OAB requirements for a Self Help Group for maintaining
Saving Fund account at Semi Urban/Rural branch?
1. 50 2. 100 3. Nil 4. 20 5. None of the above.
32) Crossing has no meaning when done on the face of_______.
1. Cheque, 2. Draft 3. Refund Orders 4. Bill of exchange 5. None of the above.
33) As per the announcement made by Finance Minister in the Union budgets, bank deposits of
shall qualify for bank rebate u/s 80C.
1. Exceeding 5 years 2. 5 years and above
3. Exceeding 3 years 4. 3 years and above. 5. None of the above.
34) What is the minimum income limit for issue of A TM - cum - Debit card?
1) Rs 60000 p.a. 2) Rs 45000 p.a. 3) Rs 1,20,000 p.a. 4) Nil 5) No minimum limit
35) The minimum period .of deposit under the PNB Flexible rate term deposit scheme is - years
and the deposit can go upto a maximum period of 10 years.
1. 7 days 2. 1 Year 3. 3 years 4. 5 Years 5.None of the above.
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36)In KCC of the bank, which type of credit card can be issued for limits between 3 lacs to 5
lacs?
1. Swam (Brown)2. Vikas(Red) 3. Sarvottam (Green) 4. Bhagwayan (Red) 5. None
37) What is the procedure for fixing the housing loan Equated Monthly Installments when the
party is not interested to pay interest debited during the moratorium period?
1) Interest debited during the moratorium period is clubbed with the principal and EMI of the clubbed ,
amount is fixed.
2) Period of moratorium be excluded from the total repayment allowed to the party and EM Is for the
balance period is fixed.
3) Separate EMI is calculated for the interest debited during the moratorium period and this EMI is
added to the EMI arrived at for the Housing Loan.
4) Separate EMI is calculated for the interest debited during the period and this EMI is recovered
after the adjustment of housing loan 5) None of the above
38) In case of consumer loan scheme of the Bank, Branch can sanction the loan if .its recovery
position is:
1. More than 95% 2. More than 90% 3. More than 80%
4. It can be sanctioned by all Branches irrespective of recovery position 5. None of the above.
39) In PNB Joy scheme of the bank , which of the following is incorrect:
1. The carry home pay of the couple should at least be 40% of their combined income
2. While financing within city, it should be ensured that borrower's place of work is in close vicinity of
the Bank.
3. Anyone of the couple must be drawing salary through the financing branch and that should be
sufficient to take care of the installment.
4. Maximum loan can be allowed for Rs 2 lacs or 10 times of the combined income of the couple,
whichever is lower. 5. None of the above.
40) What is the maximum loan which can be sanctioned to War widow in semi urban area?
1.1 lac 2.2lac 3. 5lac 4. Need based 5. None of these
41) The term booting is used in connection with which of the following:
1)Activate of the computer 2)Activate of internet
3) Activate of the Smart card 4) Activate of ATM
42)Which of the following determines the speed of the computer system:
1)Physical size of the computer unit 2) Physical size of the hard disk
3)Capacity of the Microprocessor 4)Speed of the monitor
43)The terms ISP means which of the following:
1)Internal services provisions 2)Internet service process
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3)Internet service provider 4)Interesting service process
44)Which one of the following hardware in a computer helps in permanent storage of data in a
computer:
1)Floppy disk 2)Compact disk 3)Hard disk 4) all of the above
45)To which of the following aspects the term booting relates to the context of computer?
1) Sending of E-mail through internet
2) Starting of a computer for the purpose of carry in on operations,
3) bringing out the data from various files of a computer. 4) bringing out the printer
46)Base II implementation wef: _______________
47)Short term liquidity management instrument by RBI: _____________
48)Short term injection of liquidity by RBI for banks: ________________
49) Exposure of tall money market - ceiling of investment based on : ____________
50) IFR what is maximum amount for TIER I for transfer of: __________________
ANSWER
1(3) 2(1) 3(1) 4(3) 5(1) 6(3) 7(3) 8(2) 9(1) 10(1)
11(2) 12(2) 13(1) 14(3) 15(3) 16(4) 17(4) 18(2) 19(3) 20(2)
21(4) 22(3) 23(2) 24(2) 25(2) 26(2) 27(1) 28(3) 29(3) 30(2)
31(2) 32(4) 33(2) 34(5) 35(3) 36(3) 37(1) 38(2) 39(5) 40(3)
41(1) 42(3) 43(3) 44(4) 45(2)
46----31.03.07
47---- MSS
48---- Repo
49---- Capital fund
50---- Entire 5% provided Minimum CAR- 9% & Credit & market risk provide
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1) Security verification for housing loan regular accounts is to be carried out once in_______
after initial end use and once in_______for NPA accounts.
1.1 Year: Half Year 2. Half Year: 3 months
3: 2 years : Half year 4. 2 Years: 1 Year 5. None of the above.
2) Law charges ,in suite filed accounts are debited to:
1. Borrowal account,
2. A separate account, thereafter are debited to borrowal account at the time of recovery
3. Profit & Loss account of Banks 4. Misc income account of banks
3) What is the minimum period paper?
1) 1 day,2) 7 days, 3)4 days, 4) 30 days, 5) None of the above.
4) What it is called when legal characteristics of a cheque is altered?
1. Material Alteration 2. Conversion of title
3. Change of Title. 4. Criminal action 5. None of the above.
5) The concessional loans to farmers at 7% as announced by the Govt for Kharif loans of 2006-07
will be given by the banks upto__________ :
1) Sanctioned amount of Rs :3 lacs, 2) Principal amount of Rs 3 lacs
3) 'Fresh loans upto Rs 3 lacs 4) Outstanding amount of loans upto Rs 3 lacs
5) None of the above
6) For initiation of securitization proceedings in case of consortium financing?
1) All the members should agree, 2) Decision of Leader Bank would be binding on all,
3) Members holding 75% share by value and leader bank should agree,
4) Members holding 75% share by value should agree,
5) Members holding 51 % share and Leader bank should agree
7) In the current budget, service tax has been proposed to be increased from _____% to__ %.
1) 12 : 15 2) 10 : 15 3) 10 : 12 4) 10 : 13 5) None of the above.
8) Rate of interest on which one of the following is not regulated by RBI:
1. Saving fund 2. Export Credit 3. NRO accounts,4. Import financing 5. None
9) An unmarried girl has approached you for financing under PMRY scheme of the bank. As a
branch manager you are worried that the girl may go somewhere else after marriage. What are RBI
guidelines on financing to unmarried girl under PMRY:
1. The Unmarried girl can not be financed
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2. The. finance can be given provided parents of the girl guarantee the loan.
3. The finance can be given if sufficient collateral is provided to the bank.
4. The finance can be given provided parents of the girl becomes co-borrower.
5. The finance can be given as usual & rejection should be done by an authority who is one step higher
in hierarchy.
10)Negative working capital means:
1) Current Liabilities are more than the current assets,
2) Current assets are more than the current liabilities
3) Current assets are equal to current liabilities, 4) Any of the above. 5) None of the above.
11) A Bank was having a current account of a party at X branch. The party requested for
transfer of account to Y branch. Later on a cheque issued by the party is presented at X branch which
the bank returns with memo 'refer to drawer'. Party claims damages from the bank:
1. Party has issued a wrong cheque hence party is liable
2. FOT loss to party, bank is liable since Bank has given wrong reasons.
3. Bank is not liable and refer to drawer is not a damaging memo
4. Bank is not liable since the account is already closed 5. None of these.
12) Bank has opted out of WTPCG & WTPSG schemes of ECGC and has now decided to cover
pre-shipment credit under which one of the followings?
1. Iffco-Tokyo Ins. Co. 2. General Insurance Corporation 3. Bear the risk on its own
4. Sectoral Individual Packing Credit Guarantee (SIPCG) of ECGC 5. None of
these.
13) On August 1, 2005 RBI introduced the anonymous screen based order-matching module
called NOS-OM for electronic dealing and reporting of transactions in Govt securities. At present
ehich of the following entities have been permitted to access NOS-OM?
1. All SCBs incl. RRBs, 2. All Commercial banks, 3. All insurance entities,
4. PSBs (exel. RRBs), POs, Insurance entities, MFs,Provident Funds & Pension Funds. 5. None of
these.
14) Which of the following is used for measuring the economic growth of a country ?,
1) Gross national product at current prices 2) Per capita gross national product at current prices
3) Total real gross national product at current prices .
4) Total gross national product over a period of time
15) Equilibrium price is that which
1) Equates consumers' and producers' surplus 2) Maximises consumers' satisfaction

162
3) Equates supply and demand 4) Maximises producers' profit
16) One of the main factors that led to rapid expansion of Indian exports is
1) Imposition of import duties 2) Liberalisation 'of the economy
3) Recession in other countries 4) Diversificati,on of exports
17) Fiscal deficit in the Union Budget means
1) The difference between current expenditure and current revenue
2) Net increase in Union Governments' borrowings from the Reserve Bank of India
3) The sum of budgetary deficit and net increase in internal and external borrowings
4) The sum of monetised deficit and budgetary deficit
18) The term 'Paper Gold' is associated with
1) Deficit budgeting 2) Currencies still in gold standard
3) Special drawing rights of the IMF 4) Special facility of the World Bank
19)A computer program which could infect the other programs or data is called:
1) System software 2)Application software 3) cyber crime4) Virus
20)The precaution of testing the computer security procedures and identification of lapses before
the banking operation is put to risk is known as:
1)Computer configuration 2) Deciphering 3) Computer audit 4) Computer repair
21)The electronic process that makes simultaneous use of sound, video and test :
1) Animation 2) Digitalization 3) Multi-function device 4) Multimedia
22)The term OCR means which of the following :
1)Open character recognition 2)Optical character recognition
3) Optical change reaction 4)Opposite change recognition
23)The device that converts an image into electronic form by shining and sensing the intensity of
the reflection at every points:
1)Bar code 2) Light pens 3)Scanners 4) Touch screen
24)What is “Phishing”
1) A computer virus that destroys the financial data
2) Name of a computer software company that develops anti virus software
3) Name of an anti virus programme recently developed by Microsoft
4) A form of social engineering attack used by cyber criminals to steel sensitive information
163
25)What is John Shephard Baron’s contribution to Banking , the idea of which struck him as he
stretched out in his bath after a long wait at the bank counter?
1) Credit Card 2) Debit Card 3) ATM 4) Master Card
26)In a computer software , the term ‘morphing ‘ refers to which of the following:
1) Animation technology in which one image is gradually turned into another .
2) Data conversion technique by way of use of codes,
3) Conversion of digital picture to analog images
4) A softer that saves a network form intrusion,
5) Software that links one server to another
27) Bharat Overseas Bank has been acquired by which of the following public sector banks?
1) Bank of Barada 2) Bank of India 3) Indian Overseas Bank 4) UCO Bank
28) As per the revised Clause 49 of the listing agreement, the maximum time gap between two
board meetings has been increased from ___________ to___________months.
1)1,2 2)1,3 3)2,3 4)3,4
29) RBI has allowed Private and Foreign Banks to treat their investments in Inter-Bank
Participatory Certificate (IBPCs) issued by the public sector banks as:
1) Direct lending to priority sector 2) Indirect finance to priority sector
3) Preferred sector advance 4) None of the above
30) NABARD has remodeled the existing Vikas Volunteer Vahini (VVV) Programme as:
1) Farmer Club Programme 2) Friends to Farmers of India programme
3) Krishi Mitra programme 4) Bharathiya Kisan Vahini programme
31) Market Stabilization Schemes are methods of absorbing excess liquidity from the markets or
economic systems by issue of treasury bills and dated securities by the Government and are also known
as __________ operations:
1) Open market 2) Sterilization 3) Combing 4) Neutralization
32) The mechanism through which either excess liquidity is absorbed or liquidity injected during
temporary shortages through Reverse Repo I Repo auctions is known as:
1) liquidity Adjustment Facility (LAF) 2) liquidity Management Facility
3) Market management Facility 3) Special General Ledger (SGL) facility
33) As per RBI guidelines banks which have maintained capital of at least 9% of the risk
weighted assets for both credit risk and market risks, for both HFT and AFS category as on 31st
March, 2006 would be permitted to treat the entire balance in the Investment Fluctuation
Reserves__________capital.
1) Tier I 2) Tier II 3) Discretion of the bank 4) Tier III
34) RBI has permitted repatriation of balances held in the NRO accounts within a limit
164
of_______each calendar year subject to certain conditions.
1) US$ 1 million 2) INR 100,00,000 3) US$ 10,000 4) US$

200,000
35) What new system has been proposed for call/notice and term money deals?
1) Screen based negotiated quote driven system. 2) Voice based negotiated quote driven
system.
3) Voice and Screen, combined, quote driven system. 4) None of these.
36) Which of the following facilities has been proposed for EOUs?
1) Procedures of units debonding from EOUs have been simplified.
2) EOUs would be allowed to transfer Capital Goods imported under EPCG scheme to other group
companies.
3) EOUs could claim income tax exemption within 12 months. 4) All the above.
37) In order to make agricultural exports more effective and competitive, which of the following
products have been covered under the Vishesh Krishi Upaj Yojana?
1) Dairy products 2) Poultry products
3) Fishery products 4) Dairy & poultry products
38) For which of the following export sectors, setting up of a separate Export Promotion Council
has been proposed?
1) Marine Products 2) Forestry 3) Services 4) Leather
39) What is the enhanced entitlement for duty free import of samples under Gems and Jewellery
export sector Rs.__________ lakh?
1) 1 2) 2 3) 3 4) 10
40)Under the Liberalised Remittance scheme, Authorized dealers may freely allow remittances
by individuals up to USD 25,000 per calendar year towards
1) Capital account transaction only 2) Current account transaction only
3) Either capital or current account transactions or a combination of both
4)) For medical! educational purposes only
41) As per the credit policy the deposits of the banks are projected to grow by around
Rs.___________ crore for 2006-07.
1) 2, 50,000 2) 2,80,000 3) 3,00,000 4) 3,30,000
42) The outcome of the recent ministerial level "negotiations of WTO have announced the end
date for all agricultural export subsidy as____________
1) 2007 2) 2013 3) 2012 4) 2015
43) RBI has decided to allow FDI in Asset Reconstruction Companies with the condition that
165
1)Aggregate FDI will not exceed 49% of paid up capital of ARC
2) Individual entities can invest up to 10%
3) There can be no voting rights to the investing entity 4) a & b
44)In case of regn. of charge with ROC, power is vested with ROC but the same is not available
in which case:______________
45) The charge search repot for verification of charge with ROC should be entrusted to approved
CIA at what Place: __________________
46) Whether Pvt. Ltd. co. can be a partner is a firm for opening Of a/c with banks: _____
47) A bank has failed to meet the obligation on due date what type of risk is there: _____
48) When short term sources are used for long term uses, what is adverse impact on health of
B/S: ____________________
49) Under indirect agr. finance, what is the max. limit for Financing to dealers of cattle feed,
poultry feed etc.: _______________-
50) What is dematerilisation: ______________
ANSWER
1(3) 2(3) 3(2) 4(1) 5(2) 6(4) 7(3) 8(4) 9(4) 10(1)
11(2) 12(4) 13(4) 14(1) 15(3) 16(2) 17(3) 18(3) 19(4) 20(3)
21(4) 22(2) 23(3) 24(4) 25(3) 26(1) 27(3) 28(4) 29(1) 30(1)
31(2) 32(1) 33(1) 34(1) 35(1) 36(4) 37(4) 38(3) 39(3) 40(3)
41(4) 42(2) 43(4)
44- where charge is also with other banks.
45- Where ROC is located.
46--- Co. can be a partner
47----: Settlement risk
48 -Negative NWC, CR below 1.
49------ Rs. 40.00 lacs
50------ Electronic form of share
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1) As per PNB education loan scheme interest during moratorium period is debited to:
1) Loan account of the borrower, 2) Saving account of the borrower,
3) Intt accrued on advances under Education Loan
4) Interest being simple, to be debited on commencement of repayment or on recovery is served during

moratorium period. 5) None of the above.
2)What is the minimum risk rating which is required for take over of borrowal accounts from
other banks?
1) AA 2) A 3) BB 4) B 5) None of the above.
3) What was the landmark judgment of Supreme Court on that basis Govt amended the SARF
AESI act?
1 ) Repealing of the act, 2) Directing the Govt to reconsider the act,
3)Attachment of property can not be done without prior permission from court,
4) Exempted defendant from depositing 75% of the amount before going for appeal.
4)As per the provisions of Gold Card scheme for exporters, a stand by limit for contingent
requirements can be sanctioned by the competent authority to the extent of :
1)10% 2) 20% 3) 5% 4) 15% 5) None of the above
5) How many advance cheques are taken in housing loan account where check off facility is not
available?
1) 24 2) 36 3) 48 4) Equal to the number of Installments 5) None of the

above.
6)Guarantees guarantying payment of disputed tax to customs/import duties or other levies

should be issued at least margin________.
1 ) 25% 2) 50% 3) 75% 4) 100% 5) None of the above.
7) What are the margin requirement for advance against Lease Rentals for the unexpired period
of 3 to 5 years?
1) 25% 2) 50% 3) 40% 4) 35% 5) None of the above.
8)How much amount can be disbursed in cash for investment credit under "Kisan Sampurna
Yojana"?
1) Rs 10000 2) Rs 50000 3) Rs 2 lacs 4) Rs 5 lacs 5) None of the above.
9)Mr. X a customer of another bank approaches your branch to deposit in ' safe custody, his
term deposit receipt, issued by the said bank:
1) it can be accepted, provided the other bank has no objection to this
2) it can be accepted, if the customer provides indemnity bond
3) it can be accepted, as a normal customer
167
4) it cannot be accepted, since it is a term deposit issued by another bank, which has primary lien on the
deposit.
5) it cannot be accepted. Bank should refuse.
10) Bank makes use of selling rate in case of a foreign exchange transaction, in which of the
following situations:
1)encashment of foreign travelers cheques 2)collection of a foreign currency bank draft
3)negotiation of bill tendered by the exporter
4)receipt of loan proceeds of a foreign currency loan from abroad
5)issue of a foreign currency demand draft
11) A has a term deposit of Rs 7 lacs which is yet to mature. He has an OD account of Rs 3 lacs
which has become due and he has not been paying. A Partnership firm in which he is a partner has also
an NPA account with a balance of Rs 3 lacs. A Garnishee order of Rs 5 lacs has been received in his
single name, what is the amount which will be available for the garnishee order?
1)Part amount of Rs 1 lacs after use of right of set off for overdraft and dues of the firm,
2) Entire amount of Rs 5 lacs, as right of set off is not available as FDR is yet to mature.
3) Rs 4 lacs, as right of set off will not be available against Firms OD account.
4) Nil, as no amount will be available till maturity of FDR. 5) None of the above.
12) Know Your Customer (KYC) guidelines have been issued to check anti-money laundering
activities. The guidelines have been issued by _______under__________.
1) RBI: Sec 35 (a) of RBI act 2) RBI: Sec 35(a) of Banking Regulation Act
3)IBA: Sec 35(a) of Banking Regulation Act 4) GOI . Under Anti Money Laundering Act
13) What is the maximum number of members that a Branch Service Committee should have?
1) 3 2) 5 3) 4 4) No Ceiling 5) None of the above.
14) What should be done when lessee's key is left behind in the Locker room?
1) Operation of other lockers in the same may be stopped and contact with the lessee be made for
locking of his locker
2) The locker be immediately locked by the Custodian and key be kept by him unless it is delivered to
the lessee.
3) The locker be immediately locked by the Custodian in the presence of Incumbent Incharge and key
be kept under the joint custody of Incumbent Incharge and Head Cashier.
4) The locker be opened and inventory of the articles be made in the presence of one independent
witness. Upon contacting, the articles be delivered to the lessee against proper receipt.
15) A report of transactions of Rs 10 lacs and above is submitted to higher office. The periodicity
of the report is:
168
1) Weekly 2) Fortnightly 3) Monthly 4) Quarterly 5) None of the above.
16) Mumbai Bank Ltd maintains a current account of a partnership firm named Western Coats.
The account is operated by both the partners of the firm singly. The bank receives a cheque of Rs.
28000, originally made for Rs. 23000. Though the cheque is signed by the 151 partner, the alteration on
the cheque in the amount has been made by the 2nd partner:
1) The cheque is materially altered due to which it cannot be paid
2) The payee would be told to get the confirmation of the 151 partner who had originally signed the
cheque
3)The payment would be made to the payee as the alteration in the cheque is properly authenticated.
4) The payment would .bemade for Rs. 23000 instead of Rs. 28000, if the payee is . agreeable to get
that amount . 5) None of the above
17) As per our guidelines for payment of interest on delayed collection be made, when minimum
interest comes to Rs__________.
1) 1/. 2) 5/ 3)10/- 4) 25/- 5) 100/-
18)AS per our scheme of providing Insurance cover to our account holders "Met Life", what is
the minimum amount of Insurance cover available to the saving and current account holders?
1) 50000 2) 100000 3) 200000 4) 300000 5) None of the above.
19) In a Computer System, the security is important for which of the following reasons?
1 ) To save data 2)To procure data 3) To secure data 4)To service data 5) None of the above.
20) cash payment in Krishi Card Scheme for Cash Credit Limit can be made upto
Rs_____.
1)2 lacs, .2) 3 lacs 3) 5 lacs, 4) No ceiling 5) None of the above.
21) Stamp duty on money receipts is required if the amount of money received is:
1 ) Rs 500 & above 2) Exceeds Rs 500 3) Rs 5000 & above 4) Exceeds Rs 5000 5) None
22)Grapevine is associated with:
1)leadership 2)motivation 3) communication 4) organisation 5) none of the above
23) How much foreign currency can be released as Basic Travel Quota (BTQ) for travel/visit
abroad for one or more visits during one calendar year?
1. USD 5000. 2. USD 10000 3. USD 25000 4. USD 100000 5. None of the
above.
24) Secrecy of customer account has to be maintained as per
1. Banking Regulation Act2. Reserve Ban_ of India Act 3. Negotiable Instrument Act
4 Banking Companies Acquisition & Transfer of Undertaking act 5. None of the above.
25) Bearer Draft (PN or BE) payable to bearer can not be issued as per provisions contained in:
1. Banking Regulation Act - U/s 35 2. Reserve Bank of India Act - U/s 31
3. Negotiable Instrument Act -Us 4 4. Contract Act _ U/s 21 5. None of the above.
169
26) Loan for construction of cold storage in Urban area by farmers for storage of his own
produce should be classified as:
1. Direct agriculture advance 2. Indirect agriculture advance
3. General Priority sector advance 4. Non-Priority sector advance 5. None of the above.
27) What is repayment period in respect of loan granted for Kitchen Gardening?
1. One year 2. Two Years 3. Three Years 4. Four Years .5. None of the above.
28) In case of consumer loan, the periodicity of security checking is________.
1. No requirement, 2. Required at the time of disbursement only,
3. Required at the time of disbursement and once a year thereafter.
4. Required at the time of disbursement and once in a year thereafter for regular accounts and once in
half year for irregular accounts. 5. None of the above.
29) FCNR (B) deposit can be accepted in how many currencies?
1) 4 2) 5 3) 6 4) 8 5) In any convertible currency.
30) What is the minimum net monthly salary requirement for becoming eligible under PNB
SARTHI for a person who is drawing through our branch and who is not drawing salary through our
branch?
1. 3000 : 4000 2. 4000 : 5000 3. 5000 : 6000 4. 6000 : 7000

5. None
31)Among the following who can withdraw the sanctioning powers of the officers junior to him: .
1. RM and above 2.ZM & above. 3. GM (HO) & above 4. CMD/ED. 5. Bank Board
32) A customer requests you to attest his signatures, what are charges for the same.
1. 25 2. 50 3. 60 4. 75 5. None of these
33) A party requests for giving information of some old record which is more than 12 months old
and upto 3 years in CBS branch, what are the charges for the same.
1. 50 2. 100 3. 120 4. 200 5. None of these
34) If Inspection rating of the Branch is unsatisfied, Inspection of the Branch is to be done
within:
1. Nine months 2. Six months 3. One year 4. Three months. 5. None of

the above
35) In case of loan to medical practitioner, the condition relatin.9 to security is:
1. Loan upto 20 lacs can be sanctioned on the basis of collateral security equal to 75% of limit
2. Loan upto 15 lacs can be sanctioned on the basis of collateral security equal to 50% of limit
3. Loan upto 20 lacs can be sanctioned on the . basis of 3rd party guarantee only.
4. Loan upto 20 lacs can be sanctioned on the basis of 3rd party guarantee and collateral security equal
to 50% of loan amount. 5. None of the above.
170
36) Which of the following is correct in respect to total freedom salary account?
1. Customer can avail the facility of OD upto 15000/- or the one-month's salary, which ever is
lower.
2. Corporate having registered offices within 2 KM of the branch can open accounts under the
above scheme:
3. Only branches authorised by ZM/SRM can open accounts under the above scheme.
4. Minimum 75% of the total strength of employees should join in opening the accounts.
5. All the above are correct
37) In Kissan Icchapurti yojna of the Bank, which of the following is incorrect?
1. A Farmer is eligible for finance, if he is not having any NPA record for the last 3 years as on date of
application.
2. Maximum finance under the scheme can be sanctioned at Rs 10 lacs.
3. Only Consumption loan can be sanctioned @ of '30% of the limit sanctioned or Rs 3 lacs, whichever
is lower.
4. Income from agriculture and other allied activities will be one of the basis of determining the amount
of loan. 5. All the above are correct.
38) Which one of the following is correct definition of Tiny units?
1) Investment in Plant & Machinery upto Rs 25 lacs, irrespective of location
2) Investment in Plant & Machinery upto Rs 50 lacs in Semi Urban/Rural Areas
3) Investment in Plant & Machinery upto Rs 25 lacs in Rural Areas
4) Investment in Plant & Machinery upto Rs 50 lacs in Rural area having population not exceeding
20000.
39)RBI has raised provision on standard assets from 0.25% to 0.40% with the exception of
advances to_________.
1. SSI & Agriculture advances, 2. SME and Direct Agriculture advances
3. SME & Agriculture advances 4. SME, Weaker sections and Agriculture advances
40) In case of cheque Truncation, which of the following is correct?
1. The system is instead of presenting a cheque physically to the drawee bank, image is sent
electronically.
2. Though the cost is increased, it reduces the settlement risk, therefore is being preferred.
3. Cheque truncation system is also known as Electronic Clearing service.
171
4. It is an essential re-requisite for RTGS transactions. 5. All the above are correct.
41)When some data is fed into computer for the purpose of processing or storage, it is called?
1)Input 2) output 3) Input device 4) out put device
42)Which of the following is the computer network run by RBI:
1) SWIFT 2)INFINET 3)I-NET 4)Internet
43)For transfer of money internationally or carrying financial transactions world-wide , which of

the following network is very commonly used:
1) Internet 2) INFINET 3) SWIFT 4) NICNET
44)Transmission of message through a telecommunication system by use of computer is called:
1) Internet telephony 2) Chatting 3) E-mail 4) all the above
45)A computer virus is:
1)A hardware problem with the computer 2)A software problem with the computer
3) A programme written with malicious intention 4) Hacking of a web-site
46. Innovating perpetual bond how much of the Tier I: _________
47. FCNR - New two Currencies currently added: _____________
48: For procuring which kind of deposits, commission can be paid by banks: ______
49: Under BASEL-II norms, which risks are provided: __________
50. Bancassurance undertaken by banks: _____________________
ANSWER
1(3) 2(3) 3(4) 4(2) 5(1) 6(2) 7(1) 8(2) 9(3) 10(5)
11(1) 12(2) 13(3) 14(3) 15(2) 16(3) 17(3) 18(2) 19(3) 20(4)
21(4) 22(3) 23(2) 24(4) 25(4) 26(1) 27(1) 28(2) 29(3) 30(2)
31(1) 32(2) 33(5) 34(2) 35(3) 36(1) 37(3) 38(1) 39(2) 40(1)
41(1) 42(2) 43(3) 44(3) 45(2)
46----15%
47---- Canadian & Australian dollars
48---- FCNR deposits
49---- credit, market and operational
50----- through distribution channel
172
1) In response to the notice under section 13(2) of SARFAESI & upon receipt of representation
from a borrower the secured creditor has to give reply within a maximum period of_____days.
1. 7 2. 14 3. 30 4. 60 5. None of the above.
2) Which one of the following activities can not be performed under extended hours banking
procedures?
1. Demand Loan/OD against deposits, 2. Issuance of Cheque Books
3. Issuance of DDs/Pos 4. Operations in lockers
5. None of the above facilities can be given.
3) Corporate Governance refers to governing of an organisation in such a manner that it can
take care of interest of______. .
1. Other Corporate 2. Share holders 3. Regulators, 4. Customers 5. All the above.
4) Which type of Banking is called as universal Banking?
1. Banking all over the world. 2. Banking providing short term as well as long term finance.
3. Banking for the poorest sections of the society. 4. Banking for farmers
5) Disaster Recovery Plan is_________ .
1. Plan made for recovery of chronic NPAs 2. Plan made for recovery of Decreed accounts.
3. Planning to meet various types of threats such as natural disastrous like flood, earthquakes, human
error, crime accidents, and technology breakdowns etc.
4. Planning for recovery from chronic diseases of the employees to cut down the medical bill for
an organisation.
5. None of the above. .
6) The Bank has budgeted to boost advances under Agriculture and SME sector by achieving a
minimum of 30% growth in agriculture and growth in SME sector.
1. 10% 2. 20% 3. 30% 4. 25% 5. 15%
7) What are the charges for issuance of duplicate draft upto Rs 1 lacs?
1. Rs 100 + actual out of pocket expenses 2. Rs 200 + actual out of pocket expenses
3. Rs 300 + actual out of pocket expenses 4. Rs 150 + actual out of pocket expenses
5. Rs 250 + actual out of pocket expenses
8) Under Loan to Traders scheme, what is the basis of assessment of value of IP?
1. Market Value 2. Book value
3. Net book value 4. Distressed sale value 5. None of the above.
9) Eligibility in case of Privilege card is
1. 10 times of monthly maximum 1.00 lacs 2. 10 times of monthly maximum 1.50 lacs
3. 12 times of monthly maximum 1.00 lacs 4. 12 times of monthly maximum 1.50 lacs
10) Under the scheme for composite cash credit limit to farmers, cash disbursement upto - can be
made by the branches having recovery %age of 60% or more, under Agriculture sector.
1. No Limit 2. 1 lacs 3. 500004. 250005, None of the above.
11) A Medical Practitioner has been sanctioned loan of Rs _____lacs. For that collateral security
of 100% of the loan amount is not required..
1. 25 lacs 2. 351acs 3. 50 lacs 4. 20lacs 5. None of the above.
12) Which one of the following exporters is not eligible for Gold Card?
1.exporter with credit risk rating of BB & below 2. Exporter with annual turnover of less than Rs 5
crores.
3.Exporters having overdue bills of not more than 10% of previous year turnover.
4) Exporters on caution list of ECGC/RBI 5) All the above.
13) If there is any violation compliance with the requirement of section 269 - T of Income Tax
Act by the bank by making payment of FOR in cash, What is the punishment:
1. Penalty upto 100% and Imprisonment upto 01year, 2. Penalty upto 200% and imprisonment upto 2
years,
3. Penalty upto 100% of the amount so paid 4. Penalty upto 200% of the amount so paid
14) What is maximum dividend payout ratio for a commercial bank?
(1) 33.33% (2) 25%1 (3) 40% (4) 50% (5) None of the above.
15)In the case of issue of Drafts, the PAN/GIR number is required for amount:
1) Exceeding 50000 2) Rs- 50000 & above
3) Exceeding 20000 4) Rs 20000 & above 5)None of the above.
16) Which of the following measures is not likely to help in improving India's balance of payments
position?
1) Encouragement of import substitution 2) Imposition of higher duty on exports .
3) Imposition of higher duty on imports 4) Devaluation of the rupee
17) Which of the following is the leading export item among Indian plantation crops?
1) Coffee 2) Rubber 3) Tea 4) Spices
18) The costs, which do .not vary with changes in a firm's output, are known as
1) Fixed costs 2) Variable costs. 3) Implicit costs 4) Social costs
173
19)When prices are rising, which of the following steps should the Government adopt to bring
about reduction in prices?
1) Reduce the rate of tax on personal Incomes 2) Increase governmental spending 3) Lower the
interest rates 4) Increase the availability of goods
20) Demand for goods is elastic if
1) The demand for the goods increases when the price falls
2) The quantity demanded increases less than proportionately with the decrease in price level
3) A decrease in price results in a decrease in total expenditure on the commodity
4) All the above situations exist.
21)Which of the following is not viewed, as national debt?
1) Life Insurance policies 2) Long-term Government bonds
3) National Savings Certificates 4) Provident Fund
22)The device that connects the computer with a telephone line and helps in modulation and
demodulation:
1) UPS 2) Modem 3) Plotter 4) CPU 5) None of these
23) The physical parts of a computer are known as :
1) Software 2) Hardware 3) Shareware 4) fixed ware
24) The software that consists of all the programs languages and documents supplied by the
manufacturer of the computers is called:
1) application software 2)System software 3)utility software 4)a and c
25) The application software is the software that is:
1)supplied by the computer manufacture 2)used by the computer manufacture
3) developed by the user for a specific functions
4) developed by the manufacturer foe manufacturing purpose.
26) The term B2B in the context of trade is used in connection with :
1) Banking transactions 2)Education facilities 3)social work 4) E-commerce transactions
27)Which of the following service is not provided under tele-banking service by banks:
1)Information about balance
2) Information about limited no. of previous transaction
3) Issue of cheque books 4)Request for sanction of overdraft
28)Which of the following Act gives legal recognition to a digital signature.
1) Negotiable Instrument Act 2) Income Tax act
3) Information Technology Act 4) Indian Evidence Act
29)The term VSAT stands for which of the following:
1) Variable small aperture terminal 2)Very small available terminal
3)Very small aperture terminal 4) variety of small aperture terminals
30) RBI has advised banks that balances in the currency chest should be verified at least
______________ in two months in order to check the rising instances of shortage of remittances sent
by the currency chest of the banks to RBI:
1) Once 2) Twice 3) Thrice 4) None
31) To check counterfeit currency notes, Govt. has decided to incorporate additional and new
security features called Omron anti-photo copying features in the bank notes of Rs. ____________and
Rs.__________denomination:
1) 20.50 2) 50,100 3) 100,500 4) 500,1000
32) RBI proposes to issue Rs. 10 coin for circulation in 2006-07. The coin will weigh approx. 7.71
gm and will be rimmed with an alloy of copper and nickel. This is as per the recommendations
of______________ Committee:
1) S.S. Tarapore 2) Vyas 3) Rangarajan 4) Goswami
33) RBI has simplified KYC procedure for opening accounts for those persons who intend to keep
balances not exceeding Rs.____________ in all their accounts taken together and total credit in all the
accounts taken together is not expected to exceed Rs. ___________lac in a year.
1) 50,000, 1,00,000 2) 1,00,000, 5,00,000 3)5Iac,10Iac 4) 5 lac, 151ac
34) External Commercial Borrowings refers to commercial loan in the form of bank loans, buyers
credit, suppliers credits, availed from non-resident lenders with minimum average maturity of
_________years.
1) 1 2) 2 3) 3 4) 4
35) Which of the following is not true in case of Participatory-notes?
1) Instruments used by foreign funds and investors who are not registered with SEBI but are interested
in taking exposure in Indian securities.
2) Participatory notes are generally issued overseas by the associates of India based foreign brokerages
and domestic institutional brokerages.
3) They are, offshore derivative instruments issued by foreign institutional investors and their sub-
accounts against underlying Indian securities.
4) Here investors place their orders through brokerage houses that have offshore (say Mauritius)-based
FII accounts.
174
5) The brokerage houses repatriate the dividends and capital gains with the broker acting like an
exchange, executing the trade and using internal accounts to settle the trade.
36) Which of the following is not an Exchange for Commodity Trading?
1) National Commodity and Derivative Exchange
2) Multi Commodity Exchange of India (MCX)
3) National Multi Commodity Exchange of India
4) Commodity & Metal Exchange of India (CME)
37) Which of the following banks has received RBI approval recently for setting up a Banking
subsidiary in UK ?
1) Punjab National Bank 2) ICICI 3) State Bank of India 4) Bank of Baroda
38) With effect from 1st May 2006, all listed companies are required to ensure a minimum public
share holding at _______% of the total number of issued shares of a class or kind for the purpose of
continuous listing.
1)10 2)15 3) 20 4)25
39) CGFT facility wise coverage: _____________
40) Consortium advance min. %age of share one bank must hold:_________
41) Cash transaction min period for which record to be kept under Prevention of Money Laundering
Act : _______________
42) No frill a/c benefits__________________
43) PMRY unmarried girl condition Co-borrower -_________________
44) Drawer's responsibility in usance bill of exchange______________
45)Debt velocity ratio of firm in first year was 65 days and in next year 105, days - what is
indicates:.__________________
46) If fixed assets are revalued what is the impact on balance sheet of the firm: ________
47) A & B (husband and wife) having two separate a/cs with the bank. A comes and asks the balance of
a/c of B: ____________________
48) In locker a/c after death of lessee, contents delivered to nominee, legal heirs claims afterwards,
bank's liability: ___________________________-
49) "Patches" are applied on a software programme to ?_______________
50)Treasury bill is issued for the maximum period of _____________days
ANSWER
1(1) 2(4) 3(5) 4(2) 5(3) 6(2) 7(1) 8(4) 9(1) 10(2)
11(4) 12(4) 13(3) 14(3) 15(2) 16(2) 17(3) 18(1) 19(4) 20(1)
21(4) 22(2) 23(2) 24(3) 25(3) 26(4) 27(4) 28(1) 29(3) 30(1)
31(2) 32(1) 33(1) 34(3) 35(6) 36(4) 37(1) 38(4)
39- TL and/or WC + NFB

40- No stipulation
41- Rs.10 lac and above.
42- : Zero balance and no charges
43- head of family
44- – If acceptance is given by drawee secondary and if unaccepted primary.
45- Slow recovery of firm's debts.
46-- Increase in reserves
47---- Not allowed
48-- Bank is discharged after delivery to nominee.
49----- Ans: resolve software bugs.
50-- Ans: 364 days
175
Sample Paper
1)A borrower wants to appeal to DRAT against the decision of DRT. He has to pay 50% of the
judgment amount for this purpose, however DRAT can reduce the same to the extent of____.
1. 10% 2. 15% 3. 20% 4. 30% 5. None of the above.
2) In case of Large borrowal accounts, OMS-I has to be submitted within a period of ?

1.6 weeks from close of half year. 2. 6 weeks from close of quarter
3: 8 weeks from close of half year 4. 8 weeks from close of quarter 5. None of these
3) Which one of the following has been the main cause of larger trade deficits (adverse balance of
payment position) for India during 2005-06?
1) Higher Inflation 2) Higherlmports 3) Lower Exports
4) Higher Oil Prices 5) Non absorptive capacity of the economy.
4) Outstanding entries in Draft Payable imprest account be adjusted as soon as possible but not
later than_______days time.
1. 7 2. 15 3. 30 4. 45 5. None of the above
5) Hypothecation is defined in:

1. Indian Contract Act 2. Negotiable Instrument Act.
3. Banking Regulation Act 4. SARFEASI act 5. No where defined.
6) Which one of the following has been prohibited from opening of FCNR (B) account?
1) Persons of Indian Origin 2) Overseas Corporate Bodies, 3) Students,
4) NRls 5) None of the above.
7) Market Stabilization Scheme (MSS) has been started to:

1. To absorb excess liquidity from market 2. To manage liquidity of the market
3. To provide support to Clearing Corporation of India Ltd
4. To provide support to SCBs at the time of liquidity crisis. 5. None of the above
8) What is the guiding principle for determining criterion of Associate/allied concern?

1. Commonality of management 2. Common director
3. Common guarantor 4. Common property 5. None of the above.
9) In duly introduced account, the account holder has committed fraud. What is the liability of
introducer?
1. Introducer has to pay the amount to the bank.
2. Liability of introducer is co-terminus with. that of the account holder. FIR will also be lodged
against him.
3. Introducer establishes identity of the customer only. If the identity is OK, he is not liable to the
loss occurred to the bank. .
4. Introducer establishes identity of the customer to the best of his knowledge. If his intentions are not
fraudulent and the customer turns out to be fictitious person, the introducer can not be held liable
10) Banks generally prefers to give advance to registered firms because:

1. It is safe to give advance to firms which are registered with some govt authorities as the authority
registers the same after completing due diligence process.
2. Registration certificate of the firm is like a birth certificate of the firm and no advance can be given
to a firm without having the birth certificate.
3. The unregistered 'firm can not sue others without getting it registered 1st which creates procedural
delays and ultimately affects the working of the Firm.
4. Bank can not sue unregistered firms for recovery of its loan.
11) Sub standard restructured account will become standard after _____ months of regular
repayment of installment.
1) 3 months, 2) 6 months, 3) 9 months, 4) 12 months 5) Immediately on restructuring
12) Advances sanctioned to Software Industry are treated under Priority sector upto the amount
of Rs________.
1) 25 lacs 2) 50 lacs 3) 100 lacs 4) No ceiling 5) Not treated under PS
176
13) In foreign exchange transactions, day light limit should be - than day night limit:
1. More 2. Less 3. Equal
4. Can be (1) or (2) depending upon the situation. 5. None of the above.
14) Banks may fix ceiling on interest rates on FCNR(B) deposits on monthly basis subject
to____of LIBOR/swap.
1. LIBOR/Swap + 0.25% . 2. LIBOR/Swap minus 0.25%
3. LIBOR/Swap + 0.50% 4. LIBOR/Swap minus 0.50% 5. LIBOR/Swap
15) A office order is issued in English only against the requirement of bilingual language, which
authority is responsible for that order.
1. Typing authority. 2. Signing authority
3. Accepting authority 4. Order issuing authority. 5. None of the above.
16) I.B.R.D. aims at

1) Helping children all over the world 2) Promoting the peaceful uses of atomic energy
3) Helping in reconstruction and development of economics
4) Promoting international monetary cooperation
17) Economic planning is an essential feature of

1) Mixed economy 2) Dual economy 3) Socialist economy 4) Capitalist economy
18) According to the law of demand, when price

1) Increases demand decreases 2) Increases demand increases
3) Decreases demand decreases 4) Decreases demand does not change
19) A major shift in the 10th, FiveYear Plan from its preceding ones is
1) Doubling per capita income in ten years and achieving a growth rate of 8 percent of GDP per annum,
2) Major investment in agriculture with a view to promote exports
3) The concentration of. Public investment in infra structural sectors
4) Major investment in sectors in which industrial sickness has beena chronic problem
20)The main argument advanced in favour of small-scale and cottage industries in India
1)These generate a large volume of employment.
2) These require comparatively small capital investment
3) These advance the goal of equitable distribution of income
4) Cost of production is low
21) Which of the following factors would aggravate inflationary trend ?

1) An increase of 10 percent of the price of agricultural products
2) An increase of 15 percent in the money supply in the market
3) A decrease of 12 percent in the production of industrial goods
4) All of the above factors
22) A market rate of interest of 10 percent implies that

1) The average yield on capital is 10 percent
2) 90 percent of the national income is used for present consumption
3) The marginal productivity of capital is 10 percent
4) Everybody prefers Rs. 110 next year to Rs. 100 now
23) Which of, the following deductions should not be made from the total revenue of a firm for
arriving at its profit for a year?
1) Depreciation of capital 2) Dividend, paid to ,ordinary shareholders;
3) Excess of the value of stocks over their purchase
4) Imputed interest on owner's' capital left in the business
24) Which of the following steps may be taken by a b government to check inflation temporarily?
1) Taxes should be reduced 2) Wage of workers should be increased
3) Money supply should be reduced 4) None of the above
25) Stability of prices can be brought about by

1) Increasing production 2) Controlling the circulation of money
3) Devaluation of currency 4) Both (1) and (2) above
177
26) SFMS stands for:
1) Structural fex message system 2) Standby financial message system
3) Structured Financial Messaging System 4) Structured financial messaging solutions
27)SWIFT means:
1) Society for worldwide inter bank financial telecommunication
2) Word web internal financial transaction
3) System for world and international financial transactions
4) Storage of words and information technologically
28)Digital signature means:

1) A coded confirmation in electronic form attached to an electronic record
2)A coded signatures with digital lock(password)
3)Electronic signatures which are partly in digits and partly in words
4)Signatures scanned on a computer
29)Which one of the following networking system will be used by an organization having office in
one building?
1) Broader area network, 2) Local Area Network
3) Wide Area Network 4) In land area network
30)To run a computer, which of following programme is required?

1) Language programme 2) Utility programme
3)Application Programme 4)Operating system programme
31)Which of the following is the system that makes image processing for inter-bank payment
purpose?
1) Electronic clearing system 2) Real time gross settlement
3)Cheque truncation 4) Electronic funds transfer
32) Which is the following is the main brain behind an automated teller machine (ATM)
1) Hard disk, 2)Processor 3)Interpreter Output device 4)central calculation
unit
33. Subordinated debt classification in balance sheet: _________
34. ADs can all grant extension of export bills for an amount of unto : _________
35. Power of attorney of NRI to resident _________
36. Gold card holders who are not eligible: ____________
37: Gold card holder turnover for issuance limit __________
38. In joint venture & subsiding about what is max. investment aliowed:________
39: CIA transferred to other branch, cheque returned with memo refer to drawer:______
40: DSB return is submitted to RBI for: ____________
41: Medical practitioner in rural areas - max. loan and WC limit: ___________
42: Running computer got halted - how to confirm that data is correctly loaded in the computer
system:____________________.
43) Additional rate of interest allowed to the senior citizen ex staff member is:________
44) What is the minimum amount of interest that can be paid in a 'saving bank account
maintained with us?____________
45) Where the collecting branch and focal point, branch are in the same city ,the settlement of
transactions with RBI, CAS Nagpur for Govt transactions should be completed within and else
within_________________
46) If transaction as above is not completed, the bank has to pay 'Delayed period Interest' @
178
of_____________
47)When a person has died after leaving 'Will", he is said to be died:__________
48) What is the income ceiling of the beneficiary in case of PMRY loan?__________
49)What is the income ceiling for an SC/ST borrower in rural area for financing under DRI
scheme?__________________
50) What is the notice period under SRFAESI act?__________________
ANSWERS
1(5) 2(2) 3(4) 4(3) 5(4) 6(2) 7(1) 8(1) 9(3) 10(3)
11(4) 12(3) 13(1) 14(5) 15(4) 16(3) 17(3) 18(1) 19(1) 20(1)
21(4) 22(3) 23(2) 24(3) 25(4) 26(3) 27(1) 28(1) 29(2) 30(4)
31(3) 32(2)
33--- Other liabilities and reserves
34-- USD 1 million
35-- loan can not be sanctioned.
36---- caution list, blacklisted, overdue exports bills
37---- no. min, 01 max limit.
38--1O0 % of net owned funds
39--: bank liable
40--- off site surveillance
41--- Rs. 15 lac & 3 lac.
42---- through validation
43----1.5% (0.5% of Sr Citizen and 1 % of staff member)
44--- As 1/
45----T + 3 days: T+ 5 days.
46---Bank Rate + 2%
47---Testate.
48-: Rs 40000/- p.a.
49-- Rs 6400 p.a
50-- 60 days.
179
Sample Paper
1) Provision in case of standard & NPA accounts is kept in Balance sheet of Bank as:
1. Other liabilities & provisions 2. Other liabilities
3. Long term liabilities 4. Short term liabilities 5. None of the above.
2) As per RBI data, percentage of individual borrower to total advances of banking industry as
on 31.03.2005 was at_________.
1. 10% 2. 20% 3. 30% 4. 40% 5. 50%
3) Debtor turnover ratio of a party is increasing; this may be due to______.
1. Sales of the party is increasing. 2. Debt collection period is improving
3. Sales of the party is decreasing or debt collection is slow. 4. All the above are true
5.None of the above is true
4) In case of Tractor loan to Small & Marginal farmers the gestation period may be allowed for
months.
1. 6 2. 9 3. 12 4. 18 5. None of the above
5) In terms of Bank guidelines, search on the records of ROC is to be carried out while
considering finance (Fresh/Renewal/enhancement) to limited company. The Job for search may be
assigned to CAICS and the charges for the search can be paid for Rs________per certificate.
1. 1000 2. 2000 3. 5000 4. 100005. None of the above.
6) For SHG, the share of women should at least be______ .
1. 30% 2. 40% 3. 25% 4. 10% 5. None of the above.
7) What are the reasons for decrease in CRAR of PSBs during 2005-06?
1. Decrease in profits, 2. Higher dividend payments
3. Lower deposit growth 4. Higher credit growth 5. None of the above.
8) Interest rate of Flexible FD scheme of our bank (applicable to CBS branches only) are based
on
1. Market rates 2. ALM position of the bank
3. Average yield on maturity on 10 years Govt. paper. 4. Total cost of funds to a bank
9) In terms of Bank's scheme for financing traders and service sector (Super trade), the
assessment of limits is based on_______.
1. Actual turnover and value of collateral security. 2. Projected turnover and value of collateral
security.
3. Actual turnover and value of collateral security for existing units and projected turnover and value of
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collateral security for new units.
4. Projected turnover and value of collateral security for existing units and also for new units.
10) Sale and. purchase of NPA by the financial institutions can be on_____.
1. With recourse basis 2. Without recourse basis
3. With or without recourse basis, as per the terms of sale of NPAs
4. A contingent price 5. None of the above.
11) Special Drawing Rights (SDR) is a:
1. A world bank's currency 2. Currency Of big countries
3. Special currency of European countries 4. Special currency of Asian countries
12) When message is transferred from one network to another network, it is called
1. Internet 2. Intranet 3. Gateway 4. Routers 5. None of the above.
13) Bridge Loan can not be given for the purpose of______.
1. Expecting proceeds from right issue. 2. Expecting proceeds from ECB/GDR.
3. Expecting proceeds from Public issue.
4. Expecting proceeds from private placement of equities. 5. None of the above.
14) Recently china's currency has been de-linked from USD, due to this
1. China's currency has appreciated 2. China's currency has depreciated
3. There is no impact on currency 4. Other world currencies has depreciated 5. None of the
above.
15) USA economy is in bad shape due to_____.
1. Increase in oil prices 2. Increase in trade deficit
3. Increase in value of SDRs 4. Increasing foreign debt on USA
5. Increasing expenditure on Defence
16) Which of the following would be 'fixed cost' to a manufacturing firm?
1) Plant and machinery 2) Raw materials 3) Replacement of load 4) Wages
17)Change in which of the following is the best indicator of the change in the standard of living of
the people of a country?
1) Cost of living index 2) Index. of industrial productivity
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3) Per capita income 4) Wholesale price index
18) Which of d1e following will tend to raise the market rate of interest in the long run?
1) A fall in d1e marginal productivity of capital
2) An increase in the amount of savings by individuals
3) A rise in consumer demand for present over future consumption
19) Public Sector consists of those enterprises in which the State owns
1) 50 percent of the capital 2) 66 percent of the capital
3) 85 percent of the capital 4) 100 percent of the capital
20)Which of the following amounts of transfer from the divisible pool of resources has been
recommended by the 12th Finance Commission as States' share in Central taxes?
1) 590.17 thousand crore 2) 603.28 thousand crore
3) 613.11 thousand crore 4) 712.64 thousand crore
21)Which of the following agricultural holdings have the largest percentage in India?
1) Marginal holdings 2) Small holdings 3) Medium holdings 4) Large holdings
22)Which of the following policies is likely to cause the least conflict for a country which enjoys a
surplus in the balance of payments, but is in danger of rising unemplpyment ? (Assume that demands
are elastic in international trade.)
1) Reducing government expenditure 2) Budgeting for a deficit
3) Budgeting for a surplus 4) Devaluation
23)The scheduled commercial banks in the public sector account for what percentage of
commercial banking system in India?
1) 60 percent 2) 70 percent 3) 80 percent 4) 90 percent
24)When did the World Trade Organisation, which sets out rules for world trade, come into
force?
1) 1948 2) 1951 3) 1954 4) 1995
25) The Tenth Plan envisages a national investment of approximately
1) Rs. 921 thousand crore 2) Rs. 1980 thousand crore
3) Rs. 2210 thousand crore 4) Rs. 2040 thousand crare
26)The term BIOS represent which of the following:
1) Basic input and output system 2) Base input outward system
3) Basic input output standard 4) Basic inward outward standard
27)The device that converts the digital signals to analog signals and vice versa is called
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1) Central Processing unit 2) Modem 3)FAX 4) Compact disk
28)The term WWW used for which of the following:
1)World Wide Web 2)World Wise Web 3) Web World Wide 4) Wide World Web
29) The term CAD in the context of use of computer mean:
1) Computer application design 2) Computer aided design
3) Computer appraised data 4) Computer assisted debit
30)The rate at which the transfer of data takes place is measured in terms of which of the
following:
1)Mbps 2)bpbs 3)kilobytes 4)Gigabytes
31) Who among the following has set up the network NICNET:
1)DOT 2)National Informatics Center 3)BSNL 4) CMC limited
32) IDBRT stands for which of the following:
1)Institute for development and research in banking technology
2)Institute for development and research in business technology
3) Institution of development and research in banking technology
4) Institution for development of rural banking technology
5) None of these
33) What is called if the legal contents of cheque is altered: _____________
34) Pay rolls given by a company, to bank for issuing the cheques to its Employees for salary
distribution. How it can be ensured that the same is tallying with the amount etc. given by the
company: ______________________
35) Cheque truncation through image transfer of cheque: ________________
36) Debit law charges in loan a/cs: ____________________
37) Max. of FDI in private bank: _____________________
38) Lock in period repatriation of proceeds of IP by NRI for repatriation and max. amount per
year: __________________
39)Unspent money brought back by resident from abroad in Cash and TCs - maximum period
for surrender: ____________________
40) Weaker Sector %age to NBC for PSBs: _______________________
41) KVIC max. margin money under general scheme: _____________
42) CGFT - Max. amount of claim: _____________________

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43) An account is straight way classified as "Loss asset" if realizable value of security assessed by
bank /auditor is _________________________ of the outstanding in the account.
44) An agriculture loan under short duration crop will become NPA if installment of the
principal or interest thereon will remain unpaid for_________
45) What is the purpose of calculation of DSCR? _________
46) What is the relation between a banker and a customer when banker sells securities on behalf
of its customer?___________________________
47)Whether HUF can become partner in. a partnership firm?_________
48) What is the minimum qualification of a borrower to become eligible under PMRY? (i)
8th pass; (ii) Govt sponsored training of MN 6 months; (iii) Either (i) or (ii) (iv) (i) and (ii)
both. (v) None
49)Persons (other than Sr citizens) should submit declaration on form no_______if they want
exemption from TDS as their income is not chargeable to tax.
50)What is the minimum qualification for financing under SJSRY scheme?__________
ANSWER
1(1) 2(2) 3(2) 4(3) 5(1) 6(2) 7(4) 8(3) 9(4) 10(2)
11(1) 12(1) 13(4) 14(2) 15(2) 16(1) 17(3) 18(3) 19(4) 20(3)
21(1) 22(2) 23(3) 24(4) 25(1) 26(1) 27(2) 28(1) 29(1) 30(1)
31(2) 32(1)
33- material alteration.
34- by tallying input and output records
35- for efficient payment system and quick clearance of amount
36-: P&L a/c of banks
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37-74%
38-10 Years USD 1 million
39- 90 days and 180 days
40- 10% of NBC
41-25% of CoP up to Rs.10 lac & 10% above Rs. 10 lacs max. Rs. 4 lacs
42- 75% of ols as on date of NPA with max. 18.75 lacs.
43- 10%. 44- Two crop seasons.
45-To assess the repaying capacity in case of term loans.
46--- Principal : Agent
47----: No.
48----8th pass, training holder will be preferred.
49----1 5-G (1 5-H for Sr citizens).
50----No minimum qualification. Maximum qualification is 9th pass/fail.
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Memory Based Question with Answers, asked in last Tests of various Banks
Q: With the removal of service area, it has been decided that the rural lending shall be restricted within
a radius of _____ from the branch but within the State Boundaries. But where the service area is
already beyond ____ KMs, branches will continue to finance within the service area?
A. 25 KMs
Q. Service area approach is applicable for-----------?
A. Govt. sponsored schemes only.
Q. Marginal farmer is a farmer with land holding up to-----------?

A. 1.25 acres in irrigated area or 2.5 acres in unirrigated area.
Q. Sharecroppers are those who cultivate the land-----------------?
A. By agreeing to share the product produced on land with the landlord.
Q. How many square meters is an acre?
A. 4356
Q. How many square meters is a hectare?
A. 10,000
Q. How many Acres form one Hectare
A. 2.471 Acres
Q. Kharif season extends from?
A. June to November
Q. Rabi season extends from?
A. December to May
Q. As per the recent RBI Circular Units Enterprises engaged in the manufacture or
Production, processing or preservation of goods and which have the investment in
plant and machinery does not exceed Rs. 25 lakh; are called,
A. Micro Enterprises
Q. As per the recent RBI Circular Units Enterprises engaged in the manufacture or
Production, processing or preservation of goods and which have the investment in
plant and machinery between Rs. 25 lakh – 5 Crore ; are called,
A. Small Enterprises
Q. As per the recent RBI Circular Bank’s lending to _______________ will not be
included for the purpose of reckoning under the priority sector.
A. Medium Enterprises
Q. Loan given to farmer for four-wheeler to carry agricultural produce falls under
which category?
A. Direct finance to agriculture.
Q. A loan given to a Fertilizer shop will be classified as
A. Indirect finance to agriculture
186
Q. Finance under GCC is classified as
A. Indirect finance to Agriculture (50% of the limit sanctioned)
Q. As per RBI what is population criteria for considering an area as rural area?
A. 10,000.
Q. Kisan Credit Card scheme has been implemented on the recommendations of

which of the following committee?
A. RV Gupta Committee
Q. Who fixes the scale of finance for crop loan for agricultural advances in India:
A. Distt Technical Committee
Q. Vikas Volunteer Wahini has been renamed as which name?

A.. Farmers Club Programme.
Q. What are the margin requirements for setting up of agriclinic/agribusiness center

for Finance up to Rs. 5 lac?
A. Nil
Q. The no. of members in a normal self-help group in priority sector can normally
be?
A. 10-25
Q. Self Help groups should be formed from -----------------group?
A. Out of homogenous groups
Q. Membership of self-help group from one family can be--------?
A. One member from one family in one group
Q:What is the minimum period that an SHG should undergo before Credit linkage
A. 6 months
Q. The exercise of assessing the maturity of an SHG before credit linkage is called
A. Grading.
Q. What is the document that the SHG members execute authorizing the office bearers to act on behalf
of the Group.
A. Inter – se – agreement.
68.Can branch finance to individual members of S.H.G?
A. No, branch will finance to group and not to individual members.
69. As per recent amendment financing norms for SHG borrowers. Now financing to SHG, which has
completed 3 years from the date of 1st financing, can be considered up to?
A. 1 to 10 times of their savings
Q. Who is the father of SHG Movement
A. Shri. Mohd Unis ( Nobel Prize 2006)
Q. What is the project cost under SJSRY Individual loans ?
A. Rs.50000.00
187
Q.What is Rate of Interest in case of DRI Advances?
A. 4% p.a.
Q.What is the maximum repayment period under DRI Scheme?
A. 5 years including a grace period of not exceeding 2 years.
Q. What is the ceiling of subsidy under SGSY scheme for self help group?
A. Rs. 1.25 lac
Q. The target for SC / ST under PMRY scheme is _____?

A. 22.5%
Q. What is the eligibility criterion under age for a Women PMRY applicant
A. 45
Q. Target for women beneficiaries under SGSY is ____?
A. 40%; SC/ST 50%
Q. Under SGSY scheme, no collateral is required up to Rs. ____ lacs if financed to a

group and Rs.______ lacs for individual cases?
A. 3.00 ,0.50
Q. Agri-clinic, Agri-business credit (ACABC) credit linked subsidy to SC/ST and

women is?
A. 33.33%
Q. Under rural employments generation scheme of KVIC (REGP), individuals, rural

artisans, institutions, cooperative societies setting-up projects up to _____ are
eligible?
A. 25 lacs
Q. Margin money assistance provided in the KVIC (REGP) scheme will be in the shape of back-ended
subsidy therefore, will be credited to the borrower account after _____ from the date of 1st
disbursement ?
A. 2 year
Q. Under Mahila Sashaktikaran Abhiyan, there is a rebate in rate of interest by _____ in priority sector
advances and _____ in non-priority sector advances.
A. 0.5% : 0.25%
Q Crop loan to tenant/Oral lessee farmers can be sanctioned if they joined together as a group on the
pattern of SHG to be known as _____?
A. TFG (Tenant Farmer Group)

Q. What is the max. Number of members that can join as TFG as per the above scheme?
A. 10 to 20.
Q. In PMRY scheme, what is the maximum ceiling on loan in case of Self Help
Group?
A. There is no such ceiling
Q. A PMRY applicant should be a resident of the applicant for a minimum period of

__________ years
A. 3 Years
188
Q. Minimum Education Qualification under PMRY
A. 8th pass
90. As per the latest RBI circular SRTO, SB , P& SE are all classified under
A. Service Enterprise
189
Set II
1. What is the maximum cash limit that can be withdrawn from ATM?
2. How many maximum number of A/c can be attached with debit card?
3. What is the provision required on standard assets in real estate sector?
4. What is skimming?
5. PAN No. is required to be quoted while depositing how much cash during the day?
6. As per RBI guidelines frauds of Rs.1 lac and above are to be reported to RBI within how many
days?
7. What is the present reverse Repo Rate?
8. As per right of information Act within how many days information is to be submitted?
9. Within how many days deceased accounts has to be settled by Banks?
10. Where the definition of NRI is defined?
11. Stale Bill of Lading is one, which is presented to the Banker after how many days from the date of
Shipment?
12. Contract of Insurance is a contract of?
13. Not negotiable crossing is a caution to whom?
14. What is the Legal capacity of nomining while taking payments on behalf of legal heirs of deceased
depositors?
15. Import license is issued for which value of the imports?
16. Who heads committee on Procedures and Performance Audit on Public Services
(CPPAPS) is headed by whom?
17. For how many times draft can be revalidated?
18. What is the validity period of Income Tax refund orders?
19. Clean Note Policy has been issued under which Act?
20. After the death of A/c holder bank is bound to inform the nominee within how many
days?
21. Stamp Duty on which type of documents does not vary from state to state?
22. A Bank in India has opened a current account with Bank of America in NewYork in US $ for
carrying out its day-to-day operations. For Bank of America, this account is known as?
23. Probate is issued under which Act?
24. Cases of frauds between 1crore to 5 crores where staff involvement is suspected should be reported
to whom?
25. Preservation of Bank record is mandatory under which Act?
26. What is the maximum amount of penalty that can be awarded under banking ombudsman scheme?
27. What is inchoate instrument?
28. Which day of each month is celebrated as Customer’s day?
29. What is the relationship between banker and the purchaser of draft?
30. Nomination cannot be done in favor of whom?
31. A certificate of deposit is maturing on 2nd October, which is a holiday when it is to be paid?
32. A fixed deposit receipt is maturing on Sunday when it is to be paid?
33. Who cannot open public provident Fund Account?
34. As Export Bill has been crystallized. Which rate is to be applied?
35. What is the minimum amount for which high value clearing facility is available?
36. What is the limitation period of the term deposit, which has already matured?
37. Special purpose vehicle is for the development of which sector?
38. What is the present Repo Rate?
39. What is the premium of DICGC?
40. In case of issue of TDR, the PAN No. is required of which amount?
41. What is the validity period of cash order?
42. The responsibility for verification of the documents submitted by the exporter under LC is of which
Bank?
43. As per Basel II (revised) framework, Indian Banks with no overseas presence have to
adopt Standardized Approach and Basic Indicator Approach for operational risk w.e.f. ?
44. What is the minimum and maximum amount that can be deposited in a year in PPF
account so as to qualify for the Tax rebate?
45. Under whose committee recommendation the obtaining photograph in accounts was
made compulsory?
46. Notice deposit can be withdrawn on how many Banking day notice?
47. What is the locking period for remittance of sale proceeds of the immovable property by NRI?
48. What is the maximum amount of penalty for non-submission of TDS?
49. What is the maximum amount of loan for purchase of complete house/ flat from private builders?
50. Recently which of the loan schemes has been discontinued by PNB?
51. What is present Bank Rate?
52. What is Cash reserve ratio at present?
190
53. What is the revised dead line for adoption of Basel II capital accord who have foreign
prences?
54. To be eligible for benefits under Income tax Act what is the maximum amount and
minimum period of Bank deposits?
55. After receiving credit from other Banks the amount should be credited with in how many hours
under RTGS scheme?
56. Our Banks has entered into agreement with whom for on line trading of equities?
57. Under liberalized remittance scheme, what is the maximum amount that can be remitted abroad?
58. To be eligible under DRI scheme, what are the maximum income criteria in urban areas?
59. What is the validity period of Krishi Card?
60. Which is the first Indian Bank to offer foreign currency perpetual subordinated debt
security qualifying for Tier-1 Capital?
61. What is the relationship when a person deposits the amount with Bank for issue of draft?
62. Form 15 G is applicable for citizens of which age?
63. What is the maximum amount that can be transferred through electronic funds transfer (EFT)?
64. Under agriculture term loan up to which amount collateral security is not required?
65. Cases relating to officers in which cadre and above are to be referred to central vigilance
commission?
66. As per RBI what is population criteria for considering an area as rural area?
67. Vikas Volunteer Wahini has been renamed as which name?
68. A securitization company can commence its business within a maximum of how many periods after
it is issued registration by RBI?
69. Under right to information Act if a citizen is not satisfied with the reply he can appeal
with in how many day from the date of the decision?
70. When buyer has right to purchase and the seller has obligation to sell, what is the term for this
situation?
71. Up to which amount authorized dealers can release the foreign currency for private visits abroad?
72. If the balance in a small account where KYC norms was not required to be followed
exceeds Rs 50,000, what the Bankers should do?
73. Advance up to which amount to an individual will be categorized in to retail Banking
segment?
74. What is the amount of ceiling on loans against shares and debentures to individual?
75. An importer has to submit declaration on form A-1 for imports exceeding which amount?
76. When the right to information Act came in to effect?
77. United Western Bank has been merger with which Bank?
78. What is the maximum amount of cash, which can be remitted, on foot?
79. How many working Directors are there in Nationalized Bank?
80. What is the percentage of Education Cess proposed in a current Budget?
81. What is the threshold limit for senior citizens assessee?
82. Under which committee recommendation the Banking codes and standards board of India formed?
83. What is the maximum amount ceiling covered under DICGC?
84. What is the limitation period for filing case under banking ombudsman scheme?
85. Frauds of which amount are to be reported to the Bank’s Board?
86. What is the cash withdrawn limit for BCTT (Banking cash transaction tax)?
87. What is the threshold limit for women assessee?
88. Which Bank has launched Biometric ATM’s?
89. What is the maximum time prescribed for issue of duplicate draft?
90. For opening of Trust Account which is the most essential document?
91. What is the amount of ceiling for immediate credit of out station cheques?
92. The maximum period of casual leave including preceding and succeeding Holidays for staff should
not exceed how many days?
93. What is white label Card?
94. GR form relates to?
95. What is the maximum financial ceiling of KCC?
96. A Bank, which has purchased NPA from another Bank. How will he classify it in his
Books?
97. What is the periodicity of Interest provisioning on Deposits?
98. What is the share holding of Govt in PNB?
99. In LAN each independent system is known by which name?
100. On 19th July 1969, forteen commercial Banks were nationalized, what was the
criterion?
101. Banks are restricted to advance against its own share under which Act?
102. Who can complete the inchoate instrument?
103. What is the limitation period in case of pledge?
104. Unclaimed deposits of a firm should be shown under which head of the Balance
191
Sheet?
105. What is the periodicity of verification of cash in ATM?
106. What is the investment criterion in Plant and Machinery for SME’s?
107. Loan given to farmer for four-wheeler to carry agricultural produce falls under which category?
108. OLTAS is for the purpose of which type of Tax?
109. As per the risk-rating module of the Bank, new units can get which type of maximum rating?
110. What is the amount of penalty if any one found holding of more than one PAN card?
111. Cash shortage of up to which amount should not be reported as fraud?
112. In which type of accounts nomination facility is not available?
113. In safe custody accounts what is the customer banker’s relationship?
114. Bill of exchange with two parallel lines on the face of bill, what does this indicate?
115. What does CRAR stands for?
116. What is the term for putting a Computer on?
117. An NRI can open which type of account jointly with resident Indian?
118. For how many periods close watch on a newly opened account is required?
119. Who has been appointed as the chairman of the advisory on flow of credit to
agriculture and related activities?
120. A search report from a legal counsel should be insisted upon at least for how many years?
121. A Bill is payable on demand when its limitation period starts?
122. Under which Act the definition of infrastructure has been defined?
123. What is the periodicity of submission of R returns?
124. Which day is celebrated as National consumer right day?
125. If the cash shortage is not recovered from the cashier the same day, which account will be
debited?
126. When a foreign currency for forward transaction is quoted at discount, what does it
indicate?
127. What is the minimum period for which the account should have been NPA in the books before
selling it to assets Reconstruction Company?
128. Which type of Risk is reduced by RTGS system?
129. Which Instrument enables computer through telephone lines?
130. A gold card can be issued up to which period?
131. What is the maximum time gap between two board meetings?
132. When message is transferred from one network to another network, what is it called?
133. KYC guidelines have been issued by whom and under which act?
134. For non-compliance of KYC Bank may attract penalties under which Act?
135. In case of delay in deposits of installment, at which rate Bank charges penalty
for Recurring deposits up to 5 years?
136. Who decides the rate on flexi fixed deposit?
137. Banks in general accepts deposits for a period up to 10 years; this maximum period is defined
under which act?
138. For transfer of accounts to inoperative- 10 years and above category, which date is taken as cut off
date?
139. The definition of minor is defined under which act?
140. A loan was given to a minor against the guarantee of a major. From whom the Bank
can recover the amount.
141. Can joint accounts of blind persons be opened?
142. Right to set off has been defined under which act?
143. If customer has died leaving a will what is he called?
144. Executors and administrators are appointed under which act?
145. When administrator is appointed?
146. If Bank is not satisfied with the award given by ombudsman he can appeal to which
body?
147. USA economy is in bad shape basically due to which reason?
148. Which type of networking system a Bank having different offices in one building will use?
149. Which is the main brain behind an ATM?
150. Economic Planning is an essential feature of which type of economy?
151. Hypothecation is defined under which act?
152. What does MSS stands for?
153. Which computer network is run by RBI?
154. A NRI is having foreign currency in GBP. He wants to open FCNR account in USD.
How will it be possible?
155. What is the minimum risk rating required for takeover of Borrowal accounts from other banks?
156. Which determines the speed of the computer system?
157. What is the rate of interest payable on eligible CRR balances?
158. What is the penalty under right of Information Act, if information is not provided with in 30 days?
192
159. Biomatrix relates to which?
160. Virus in a computer generally comes from where?
161. What are hybrid Instruments?
162. Which is the term used for correcting mistakes in a computer programme?
163. Bank guarantee is defined under which act?
164. What is firewall?
165. Under Swecha Jama Yojana, if the depositor’s deposits more than 10 times of the core amount
then, what rate of interest should be paid on excess amount deposited?
166. Within how many days service tax deducted during the month is required to be remitted?
167. Under new UCPDC guidelines, what is the time limit for examining exports documents?
168. What is the time limit for acceptance of Bill?
169. What is the time limit for a Banker to present the Bill?
170. Whom accounting standards AS-15 relates?
171. What is the periodicity of BSR?
172. For what period FDR of subsidy amount is prepared under PMRY cases?
173. For appointment of a foreign national as Director in Board of an Indian company, whom
permission is required?
174. What is the maximum amount of investment in Plant & Machinery to be classified under tiny
industry?
175. Interest rates on Loans and advances are decided by which committee?
176. What is the liability of introducer in case of an account holder defrauds the Bank?
177. What is the amount of insurance premium in Kisan credit card? And who pays it?
178. PAN No. has how many digits?
179. What is the concession in rate of interest is given in education loan if repayment of
interest is done during moratorium period?
180. TDS is applicable on rent paid if the rent is more than what amount?
181. What are the three pillars of BASEL-II?
182. How many ombudsmen are at present?
183. What is the risk weight for commercial real estate?
184. What is the maximum percentage of FDI permitted in private Banks?
185. Unreconciled inter branch entries of more then 6 months old at what rate bank has to
make provision?
186. What is the name of new scheme introduced for financing to Scavangers?
187. Which type of LC has been prohibited for issuing by bank?
188. Currency chest with bank branches of various banks remains under the ownership of?
189. What is the margin % for advances against shares in demat format?
190. What is the dividend payout ratio for the dividend that the banks can pay without
obtaining prior RBI permission?
191. The no. of members in a normal self-help group in priority sector can normally be?
192. Bipartite Settlements between the employees of the banks and their managements are registered
under which of the following Acts?
193. What is the minimum capital adequacy requirement for a bank to declare dividend
without prior permission of RBI?
194. A power of attorney executed abroad and attested by Notary public in that country?
195. What is the maximum amount of project cost in case of joint venture in the form of
partnership in PMRY?
196. The Attachment order will be applicable only when the banker and customer would be having
following relationship?
197. Sale of an old asset on credit at a price greater than the written down value would?
198. Ways and means advances mean?
199. Kissan Credit Card scheme has been implemented on the recommendations of which of the
following committee?
200. The free reserves in the balance sheet of a bank, for the purpose of capital adequacy ratio, from
part of which or the following?
201. The term ESOP is used in the context of ?
202. A letter of credit is silent about the currency in which the insurance is to be obtained. In which of
the following will it be obtained?
203. Hindi became Official Language and the policy became effective with effect from the following
date?
204. The Term ‘Green-shoe option’ is used in relation to?
205. The maximum period for which a certificate of deposit can be issued?
206. Articles left in safe custody cannot be delivered on the basis of a succession certificate because?
207. Rural infrastructure development fund (RIDF) is administered by?
208. Under Priority sector, what is the maximum loan limit for repair of houses in Metro town areas,
unde housing finance?
193
209. What is the maximum exposure limit of a bank to capital market?
210. What is the maximum exposure limit of a bank to venture capital fund (VCF)?
211. Banks cannot advance against their own share because of the prohibition under which act?
212. What is the minimum amount of standing in case of willful default that the information will be
required to be sent to CIBIL?
213. What is the minimum paid –up capital required for a new private Bank?
214. What is the name for data storage unit of a computer?
215. In which form CRR is maintained?
216. Export proceeds should normally be realized by an exporter without approval from RBI within
how much period?
217. Negotiated dealing system relates to which?
218. Account payee crossing is an order to whom?
219. What does productivity in Banks means?
220. On the death of every holder his nominee claims the payment before maturity but the legal heirs
oppose such payment. What bank should do?
221. Banks notes should not be stapled under which act?
222. Who announces foreign Trade Policy?
223. What is the rate at which BCTT is to be deducted?
224. Bank can open temporary branch in a Mela or exhibition for a maximum of how many days?
225. What is the periodicity of charging Interest in Agricultural Advances?
226. What is mutilated note?
227. What is the time period for closer of Inter Bank Foreign Exchange transactions in India?
228. The Forward rate of USD is being quoted at a premium, who will be benefited?
229. What is the target of priority sector for foreign Banks?
230. What is the cut off amount for corporate debt restructuring?
231. While opening new account, the banks generally insist on first deposit in cash, under
which act?
232. Transferable letter of credit can be transferred how many times?
233. What is cash loss?
234. Bombay Stock Exchange, Sensex is based on how many shares?
235. What is the minimum value of stock of gold and foreign securities, Which RBI has to maintain
against issue of currency?
236. For allowing instant credit to a saving bank customer, what is the time period for
satisfactory conduct of account?
237. What does AIR in connection with taxation relates to?
238. What is the rate of interest Senior Citizens Savings Scheme, 2004?
239. A dealer has over sold position of USD in the mean time INR has become stronger in relation to
USD, what will be the impact on dealers position?
240. What is the maximum amount a foreign bank can invest in the capital of banking
subsidiary in India?
241. What is the maximum percentage of foreign earned which can be retained in EEFC
account
242. INFINET stands for what?
243. Exposure norms for infrastructure projects in case of single and group are what % of
capital fund?
244. Who appoints an administrator?
245. Maximum amount of loan that can be given for software development to a firm in
priority sector is?
246. The term mulberry relates to which?
247. Visit by a resident Indian to which countries are not eligible for obtaining foreign
exchange under basic travel quota?
248. In case of credit balance in the account under swarozgar credit card, what is the rate of interest
payable?
249. To be classified under priority sector what is the maximum cap on housing loan amount?
250. W.e.f July 1st 2007, which will be the regulating authority for LC’s?
Answers
1. Rs.25000 Per day
2. 3
3. 2%
4. Skimming is an illegal act of capturing credit/ATM/ Debit Card.
5. Rs. 50,000 or more
6. Within 3 weeks of its detection.
7. 6%
194
8. 30 days.
9. 15 days.
10. Income Tax Act.
11. 21 days.
12. Indemnity.
13. Endorsee.
14. Trustee.
15. CIF value of Imports.
16. S S Tarapore.
17. Ones.
18. 3 months.
19. Section 35A of banking regulation Act.
20. Within 6 months in case of Deposit Accounts and within 3 months in case locker
Account.
21. Bills of Exchange.
22. Vostro Account.
23. Indian succession Act.
24. Central Bureau of Investigation
25. Banking Regulation Act.
26. Rs. 10 lakh.
27. In complete instrument.
28. 15th of each month.
29. Agent and principal
30. Sole proprietorship firm.
31. On 1st October
32. On Monday with payment of Interest up to Sunday.
33. NRI & HUF
34. TT selling rate.
35. Rs.1 lakh.
36. 3 years from the date of demand.
37. Infrastructure.
38. 7.75% wef 30.03.2007
39. 10 paisa per 100
40. Rs. 50,000 and more.
41. 6 months.
42. Negotiating Bank.
43. 31st March 2009
44. Minimum 500 Maximum 70.000
45. Ghosh Committee.
46. At least 1 banking day notice.
47. No locking period provided the amount does not exceed USD 1 million per financial
year.
48. Amount of Sum involved.
49. 100 lakhs at metro centers and Rs 50 lakhs at other centers (ZM discretion).
50. PNB Super trade.
51. 6% wef 29/04/2003
52. 8.25% w.e.f. 24.05.2008
53. 31st March 2008.
54. Maximum amount Rs 1 lakh and minimum period 5 years.
55. 2 hours.
56. IDBI Capital market.
57. USD 2 lakh per financial year for current / capital or both type of transactions
58. Rs.24000 per annum.
59. 5 years.
60. ICICI Bank.
61. Agent and principal.
62. Below 65 years of age.
63. No ceiling
64. Rs. 1.00 lakh (earlier 50,000).
65. Scale V and above.
66. 10,000.
67. Farmers Club Programme.
68. Maximum period of 6 months.
69. 30 days.
70. Call option.
195
71. USD 10,000 of equivalent in one financial year.
72. Bankers should immediately obtain all documents to satisfy KYC norms.
73. Advance up to Rs. 5 crore.
74. Rs, 10 lakhs for shares in physical form or Rs, 20 lakh for shares in DEMAT form.
75. USD 5000.
76. 12th October ,2005.
77. IDBI Bank.
78. Rs, 1 lakh.
79. 2
80. 3% on Net Tax.
81. Rs, 2 lakh 25 thousands
82. Under chairman ship of Shri SS Tarapore committee, called procedures and
performance audit of Public Services.
83. Rs, 1 lac per depositors per Bank.
84. 1 year from the date of rejection/final reply by a bank.
85. All frauds of Rs 1 lakh and above.
86. Rs, 50,000 for individuals /Prop-firm and Rs 1 lakh for others.
87. Rs, 1,80,000.
88. Citi Banks.
89. Within a fortnight from the date of receipt of request.
90. Trust deed.
91. No ceiling
92. 6 days.
93. Credit Card.
94. Exporter.
95. Rs. 10 Lacs
96. Standard Assets.
97. Monthly.
98. Rs. 57.80%
99. Node.
100. Deposit of Rs 50 crores and more.
101. BR Act.
102. Either holder of the instrument or drawer.
103. No limitation.
104. Current liabilities.
105. Daily.
106. Above SSI ceiling and up to Rs, 10 crores.
107. Direct finance to agriculture.
108. Direct Tax.
109. New Project Model
110. Rs.10,000.
111. Up to Rs, 1000.
112. Joint safe custody accounts.
113. Bailor –Bailee
114. This crossing has no meaning.
115. Capital to risk weights assets ratio.
116. Booting.
117. NRO.
118. 3 months.
119. V S Vyas.
120. 12 years
121. From the date of the Bill.
122. Income Tax Act 1961
123. Fortnightly.
124. 15th March
125. Protested Advance.
126. The currency is expected to be cheaper in future.
127. 24 months as NPA.
128. Settlement Risk.
129. Modem
130. 3 years.
131. 4 months.
132. Internet.
133. RBI under Section 35 A of BR act.
134. BR Act.
196
135. Rs 2.50 per hundred.
136. Rate is decided by Bank themselves on the basis of average yield to maturity of 10 year
Government paper.
137. Non defined under any act it is as per IBA guidelines
138. 1st December.
139. Indian Majority Act.
140. Neither from minor nor from major.
141. Can be opened with any person. Either with blind or others.
142. Not defined anywhere.
143. Testate.
144. Indian succession act.
145. If person dies without leaving a will (intestate).
146. RBI.
147. Increase in trade deficit.
148. Local Area network.(LAN)
149. Processor
150. Socialist economy.
151. SARFEASI Act.
152. Market stabilization scheme, its aim is to absorb excess liquidity from the market.
153. INFINET.
154. Yes, by applying cross rates.
155. BB
156. Capacity of microprocessor.
157. 0% wef 31.03.2007
158. Rs, 250 per day maximum 25,000.
159. Voice recognition
160. E- mail
161. Instruments with a mixture of debt and equity.
162. Debugging.
163. Indian contract Act.
164. It is software to protect intranet from outside intrusion.
165. No interest will be paid.
166. Within 5 days from the close of the month.
167. 5 Banking days.
168. 48 hours excluding Public Holidays.
169. Within 24 excluding public holidays.
170. Accounting for employee benefits in line with the International standards.
171. Yearly.
172. 3 years.
173. RBI
174. Rs.25 lacs.
175. ALCO-asset liability committee of respective Bank.
176. No liability unless he is involved in a fraud.
177. Rs, 15 per annum. Bank and borrower pays in the ratio of 2:1.
178. 10.
179. Concession of 1% in interest rates.
180. Rs. 1,20,000 in a financial year.
181. Capital adequacy supervisory review and market Discipline.
182. 15.
183. 150%
184. 74%
185. 100%
186. Scheme for Rehabilitation of Manual Scavangers (Introduced on 15.04.08)
187. Revocable LC
188. RBI
189. 50% for all
190. 40%.
191. 10-25
192. Industrial Disputes Act.
193. 9% for the year for which the dividend is to be declared and previous 2 years
194. Is valid in India also if stamped in India within 3 months from date of entry into India.
195. Rs.5 lac for business and Rs.10 lac for other than business.
196. Debtor and creditor.
197. Increase owner’s equity to the extent of profit on sale.
198. Temporary advances to Govt,.bank by RBI.
197
199. RV Gupta Committee.
200. Tier I
201. Allotment of shares to employees as incentive
202. Currency of the letter of credit.
203. January16, 1950
204. Option to retain that portion of the equity that has been subscribed by the public, over and above
the issued amount.
205. Not more than 12 months.
206. These are not included in debt and securities as defined under Indian Succession Act
1925.
207. NABARD.
208. Rs.2.00 lac.
209. 40% of its net worth.
210. 40% of its net worth.
211. Banking Regulation Act 1949.
212. 25 lacs.
213. 300 crores.
214. Hard disk.
215. Cash Balances with RBI.
216. 6 months.
217. Trading Govt. securities.
218. Collecting Banker.
219. Business per employee consisting of deposits and advances.
220. Bank will pay to nominee as the nominee has all rights of depositor to obtain payment.
221. Banking regulation act 35 A
222. Ministry of Commerce.
223. 0.1%
224. 30 days.
225. Yearly.
226. Whose one portion is missing?
227. 5 p.m.
228. Exporter.
229. 32% of Net Bank Credit.
230. Rs.10 crore and more.
231. Not under any act, it’s the general practice.
232. Ones only.
233. The losses computed without providing for depreciation.
234. Top 30 shares of Indian blue chip companies.
235. Rs.115 crore.
236. Minimum 6 months.
237. Annual information report.
238. 9% simple.
239. Gainer
240. 100%
241. 100%
242. Indian financial network
243. 20% & 50%
244. Court
245. Rs. 100 lacs
246. Sericulture
247. Nepal and Bhutan
248. Prevailing saving bank rate
249. Rs. 20 lac for construction of house irrespective of the location and Rs 2 lac and Rs 1 lac for repair
in urban and rural areas respectively.
250. UCPDC-600
198
Set III
1. State / Union Territory Level banker's Committee (SLBC / UTLBC) convener banks in all
States / Union Territories have been advised to identify at least one suitable district in each
state / U.T for achieving 100% 'financial inclusion' by providing?
2. Under KYC guidelines the account of introducer should be atleast how many month old?
3. From which date BASEL II is to be implemented. And what are the pillars?
4. What is the rate of TDS on rent more than rupees 1,20,000/- for individuals?
5. Repatriation allowed from NRO account on account of proceed of immoveable property
upto the maximum amount of?
6. Maximum time period available to the banker for the scrutiny of LC documents is?
7. How many permitted currencies are there in FCNR accounts?
8. XOS relates to?
9. For how long the NPA should be there in the books of the selling bank?
10. Period for reply to customer's objections under SARFAESI?
11. Minimum time period of notice required for the sale of immoveable property under
SARFAESI?
12. What is Firewall?
13. Define cheque Truncation?
14. Under RTGS in how many days customer gets credit?
15. Under KYC guidelines reporting/monitoring is compulsory for the transaction of Rs .?
16. What is the penalty for the violation of Section 269 under IT Act 1961 (Cash payment of
term deposit of more than Rs 20,000/-?
17. What is the Cut of limit where banks can give differential rate of interest?
18. Exposure norms for single borrower without taking to the extra 5% for infrastructure?
19. Exposure norms for group borrower without taking to the extra 5%?
20. What is the penalty in right to information Act?
21. SME definition?
22. Payee of the cheque refuses to sign at the bank of the cheque, what will you do?
23. Hypothecation is defined in which Act?
24. TDS on deposit is to be remitted latest by?
25. BCTT to be remitted latest by?
26. In which account more than one nomination can be accepted?
27. How much amount of foreign currency one is permitted to keep?
28. For tourism/private visit to foreign country. What is the maximum amount permitted?
29. Under Liberalized Remittance Scheme what is the maximum amount permitted per
calendar year?
30. Upto, which account form A2, is not required?
31. Under SARFAESI, the minimum-qualifying amount is?
32. Crystallization of Export bill is done after how many days of notional transit period?
33. What shall be the applicable rate, while crystallizing the export bill?
34. Perpetual Bond is considered to be part of Tier I, Why?
35. When Hindi Divas is celebrated?
36. Safe deposit of Articles is defined under which Act?
37. What is the minimum and maximum time period of FCNR deposits?
38. Service Tax is to be deposited latest by?
39. Director of company dies cheque signed by him is presented in clearing?
40. Base currency is appreciating and bank is in over sold position. What is the effect on the
profitability on the bank?
41. Forged notes tendered by customers. What the bank should do?
42. When RBI applies reverse Repo Operations?
43. The base currency is depreciating and the banker is in over bought position. What will be
the effect on profitability?
44. Under which Act Lok Adalat is formed?
45. An NRI can open a joint account with resident individual in which account?
46. Frauds are to be reported to the Police if it is less then?
47. Validity of the cheque is six months. It is defined under which Act?
48. Who can stop payment the draft?
49. Where the registration of modgage is done?
50. A & B having account appoints X as agent. Be dies next day, cheque signed by X is
presented in clearings?
51. What is the minimum and maximum SLR?
52. Foreign bank having rupee account in India - for the Indian bank this account is?
53. Under which charge the position and owner ship remains with hypothecator?
54. Who decides the exchange rates in India?
199
55. The pensioner is required to submit life certificate every year in the month of?
56. As per RBI, which is, miss match bank note?
57. Maximum amount for Lok Adalat?
58. Minimum Notice Period for possession under SARFAESI Act?
59. What is the minimum age of minor for opening the Self Operated SB account?
60. CDR - What is the amount of eligible loan?
61. To Ombudsman - Complaint can be made from date of cause of action upto the maximum
period of?
62. What is the paid up capital of ARC?
63. Is right of set off is available between 2 banks?
64. In case of pledge, the bailer is called - pawner and the bailee is called?
65. SB interest rate is fix by whom?
66. Fixed deposit rates are decided by whom?
67. What is the minimum and maximum time period for term deposits?
68. For appeal against DRT decision to DRAT, how much amount to be deposited?
69. If a charge is not filed by a company within 30 days from the date of execution of
documents. Can it be filed or not?
70. As per present norms frauds are to be reported to RBI within?
71. What is present repo rate and reverse repo rate?
72. What kind of charges is not required to be registered under Section 125 of companies Act?
73. What is the target fixed by RBI for advances to women?
74. What is the maximum amount of deposit under Senior Citizens deposit scheme?
75. SLR is defined under which Act.
76. Who issues garnishee order?
77. Certificated of deposit & Commercial Papers can be issued minimum for how many days.
78. Stamp duty of Rs. 1 on cash receipt is to be paid if the amount is.
79. PAN has how many digits.
80. What is the maximum period upto which the consumer can approach consumer court.
81. Banks under which Act maintain CRR.
82. In which crossing the transferee does not get better title?
83. What is meant by leverage ratio?
84. Nomination facility is not available in which type of joints accounts?
85. What is the minimum time period for opening NRE term deposit account?
86. Upto what population a place will be categorized rural area?
87. Amounts in words and figures differ which is to be paid and under which section?
88. What is the periodicity of payment of interest on saving bank account?
89. What is the maximum amount for which Form 15H can be taken?
90. What is the rate of stamp duty payment on usance bill of exchange?
91. BCTT not applicable on which accounts?
92. What is the age of Senior Citizen as per IBA?
93. Relationship of banker and customer in case of locker is?
94. Discounting of Export bill by a banker results in inflow or out flow of foreign exchange?
95. Maximum amount for Arbitration by Ombudsman?
96. Where the customer is defined?
97. Customer day is observed in branches on which date?
98. R Returns sent by banks to RBI relates to?
99. Borrowing by RBI under liquidity adjustment is defined as?
100. If there is a shortage of cash to be closed, which account to be debited?
101. Validity of gold card for exporters is?
102. What is the validity of import license and who is the issuing authority?
103. Which type of crossing is not defined under any act?
104. Which types of customers cannot open current account?
105. Who is the governor of RBI?
106. Who is the Chairman of 12th Finance Commission?
107. What can be maximum number of partners in a firm other than banking business?
108. CRR is to be maintained by banks on which factors?
109. Indian Stamp Act and limitation Act is applicable to which states of India?
110. May I help you? Enquiry counter should be established in branches. What should be the
minimum staff strength?
111. High value clearing is called for which amount?
112. Bridge loan is sanctioned for a maximum period of?
113. Raj Bhasha Divas is celebrated on ?
114. Exposure norms for groups, other than infrastructure projects as defined by RBI is?
115. For vetting of documents the threshold limit of credit facility is?
116. Cash budget system is applicable to which crops?
200
117. Under CDR system the minimum outstanding of credit facilities from all the banks should
be?
118. Cut of limit for definition of will full defaulter as per RBI is?
119. What is the cap in investment on foreign direct investment in Private Sector Banks in India?
120. What is the maximum amount a foreign bank can invest in the capital of Banking Subsidiary
in India?
121. What is the minimum bid size for entering Repo / reverse Repo?
122. What are MSS (Money Settlement System) instruments?
123. RBI has constituted and Advisory Committee on flow of credit to Agriculture is headed by?
124. Public Holidays under NI are declared under which Saction?
125. Protesting is associated with?
126. What is the due date of bill following due on a holiday?
127. Inchoate Instruments means an instrument, which is?
128. What is the time available for acceptance of bill?
129. Where rate of interest is not mentioned in bill of exchange? Than what will be the rate of
interest?
130. A cheque bears special crossing in favour of two banks how such a cheque can be paid?
131. What is the maximum penalty to be imposed under NI Act for bouncing of cheques?
132. Customer is defined under which act?
133. Garnishee order is received in the name of one of the joint account holders. What will you
do as a banker?
134. In which of the account no nomination is permitted?
135. Photographs in the account should be replaced after how many years?
136. Can bank exercise right to setoff after the receipt of garnishee order?
137. After the death of a Karta in HUF there are two minor sons and mother. Who will the next
Karta?
138. Trust is formulated under which Act?
139. What are demand deposits?
140. What are time deposits?
141. What is the penalty for pre-mature cancellation of term deposit?
142. What is the objective of Prevention of Money Laundering Act 2002?
143. Under KYC norms, what is the maximum periods upto, which the records are to be
preserved?
144. What is the periodicity of reporting of cash transactions of Rs. 10 lac and more to
controlling office?
145. Obsolete question deleted.
147. What is the minimum and maximum amount under multi-benefit-deposit scheme?
148. What is the minimum amount under flexi-fixed deposit scheme?
149. What is the minimum and maximum period of deposit under flexi-fixed deposit scheme?
150. What is the minimum amount of monthly installment under Recurring Deposit Scheme?
151. What is the minimum & maximum periods under Recurring Deposit Scheme?
152. What is the minimum & maximum amount under the scheme Flexi RD Scheme?
155. What is the amount above which is transferred into FD account?
156. What is the minimum and maximum maturity period of such FD?
162. What is the balance beyond which the amount is to be transferred to FD?
163. What is the period of such FD?
164. Who are premium saving Fund account customers?
165. What is the maximum numbers of withdrawals permitted in SB accounts?
166. What is the maximum number of operations in a locker is allowed in a year?
167. What are the charges if number of operations in locker exceeds 24 in a year?
169. What is the minimum balance required to open the account under Saving Fund Salary Account?
170. What is the minimum number of accounts of the strength of the employer to open the
account under this scheme?
171. What is the minimum amount required to open Student Saving Fund Account?
172. What is the amount of overdraft facility given to students under the said scheme?
201
174. What is the minimum amount required to open the account under Auto - Sweep Account for
Govt. Deposits?
175. What will be the rate of interest applicable to these accounts?
176. What is the cut off amount over which the interest will be given?
177. Simultaneous sale & purchase of currency at two different places. What is the name of this
term?
178. Define Arbitrage?
179. An NRI is defined as a person who is not residing in India for more than how many days
during the course of preceding financial year?
180. Define Overseas Corporate Bodies?
181. When Fema (Foreign Exchange Management Act) came into effect?
182. Non Resident Indian is defined under which Act?
183. Unused foreign currency & traveler's cheques are to be surrendered within how many days
of return?
184. A dealer has over sold position of USD. In the mean time INR has become stronger in
relation to USD. What will be the impact on Dealer?
185. What is the status of the students went abroad for studies?
186. The maximum percentage of foreign exchange, which can be retained in EEFC account?
187. The expiry date of an LC falls on 26th Jan a public holiday. Its due date will be?
188. Under UCPDC a norm the maximum variation in amount & quantity is allowed is?
189. An LC has been received in favor of exporter, which allows exporter advance at reshipment
stage and also for warehouse facility. What is the classification of this LC?
190. Transferable LC can be transferred how many times?
191. Exporter can realize exports proceeds within a maximum period of?
192. There is an outflow of foreign currency & the nostro account of the bank is debited. Will it
be a purchase or sale transaction?
193. An importer approaches the bank to retire an import bill. What rates will be applied?
194. Within how many days of shipment, bill of lading should be submitted?
195. Every banking company to create reserve fund and 20% of its profits should be transferred
to this fund before any dividend is declared? This is defining under which Act?
196. An endorser of a negotiable instrument by express words excludes his liability. Which type
of endorsement of this?
197. Appeal against the judgment by the Banking ombudsman can be made within how many
days of the receipt of the award?
198. Draft payable imperest entries should not outstand for how many days?
199. What is the rate of interest for payment of interest of delayed collection of cheques/bills?
200. What is the validity of credit risk rating?
201. Define special mention asset?
202. Risk weight on bank exposure on real estate is
203. The main enentity of SFMS system is
204. SFMS is a system used in a bank for which purpose
205. In SFMS copies of sent and received massage are stored at
206. Full form of TCP is
207. What is the full form of IP
208. The unrecognized inter branch entry which are six month old bank haze to make how much
provision
209. Bank cash transaction tax payable by a partnership firm on cash withdrawl from bank a/c ,
except SB A/c, the limit of withdrawal is
210. Digital signature means
211. In fraud cases where Banks do not report to RBI, they can be penalized by RBI under
which act
212. The foreign born spouse of a NRI will be given which status as per FEMA
213. If USD is being quoted at a discount for one month future transaction, how will this effect on
importer?
214. Under UCPDC, if Quantity is mentioned as app., a tolerance lavel is allowed up to?
215. As per The economic survey 2005-06, the growth rate of Indian economy is pegged at
216. National knowledge commission is headed by whom
217. The committee appointed by RBI for examining whether rupee can be made fully
convertible is headed by
218. What is the maximum cap on FCNR-B interest rates
219. Can a minor be admitted as a partner in partnership firm
220. Should minor sign in the a/c opening form of parternership firm in which he is a parter?
221. In case of dissolution of a firm what should a banker do when a/c is in debit?
222. Pvt. Ltd. Co. is not having certificate of commencement of business. How the a/c can be
opened.
202
223. What is the document required to opened the a/c of joint stock co.
224. Garnishee order is not applicable in which cases
225. How many No. of sections are there in NI ACT
226. Can minor draw, endorse or negotiate a negotiable instrument.
227. Income tax attachment orders for Rs. 10000/- is received on the a/c the balance of which is
Rs 5000/-. Subsequently Rs. 20000 /-is deposited. How much amt. is available for
attachment.
228. In case of death of Muslim customer, claim will be settled under which acts.
229. Up to which amt. succession certificate is not to be insisted upon.
230. Is the authorized person allowed to operate the locker after the death of the hirer?
231. The locker is hired in the names of two persons, operated jointly. How many max. No. of
Nominees can be there.
232. Preservation of bank records is governed under which Act?
233. In the joint a/c under E/S, income tax attachment order will apply to the balance up to which
extent ?
234. Book debts are charged by way of ?
235. The registration of partnership firm is to be done with ?
236. What is the periodicity of submission of R returns ?
237. What is the man objective of KYC norms?
238. One of the trustees of a Trust maintaining an account with our bank is adjudged as
insolvent .A cheque signed by him was presented through clearing after you received the
notice of insolvency of the trustee. What will you do?
239. Documents of title to goods are transferable by which way?
240. In a foreign exchange transaction a right but not the obligation to buy or sell is called?
241. Mr. tejpal singh a sole proprietor of M/s impex pvt. Ltd. an exporter he seeks guidance as to
which type of LC he should insist which will assure him that some preshipment advance is
made available at the instance of importer?
242. Not -Negotiable crossing is a caution to whom?
243. Deposit accounts which have not been operated for more than 10 year are called which
type of a/c's
244. Return of unclaimed deposits is required to be submitted to RBI under which act:?
245. Rohit and Mohit are two minors and want to open self operated joint accounts and both
have completed the age of 10 years and are literate?
246. A state bill of lading is one-
247. What is Banker's lien?
248. For importer, a contract of insurance is a contract of?
249. Import license indicates:
250. What is the "Foreclosure"?
251. Stamp duty on which document does not vary from state to state?
252. An NRI approaches your branch to open public provident fund account (PPF) you will ?
253. What is the minimum and maximum amt. of dep. in PPF a/c per annum
254. If guarantor adjusts the loan in full and final. The right of the guarantor to step in the shoes
of creditor upon full payment of debt is called the right of?
255. Special Purpose Vehicle (SPV) mechanism is suggested in the budget for development of?
256. Banking services delivered to a customer by means of a computer control system that does
not directly involve usual banks branch is called?
257. For banks to undertake Insurance business, what should be the networth of the bank?
258. As per Goiporia committee, dishonored cheque should be returned to the party with in how
much time?
259. Time limit for Interbank Forex market has been extended recently up to?
260. The aggregate Capital market exposure of banks should not exceed. What percentage of
their network?
261. The maximum extent of FDI permissible in public sector bank is?
262. Equitable mortgage was created by deposit of title deeds on 01.06.2004. Subsequently
Registered Mortgage was executed on 02.06.2004. Which mortgage will have priority?
263. Clean Note Policy is governed under which Act?
264. Who governs Letter of Credit?
265. What is the minimum period of Recurring Account?
266. In FCNR A/c, the exchange risk is borne by whom?
267. An export bill has been sent in collection in which a/c the proceeds can be placed by an
exporter after realization?
268. What is the maximum period upto, which Treasury Bills can be issued?
269. By adding a confirmation, the confirming bank undertakes the liability similar to the?
270. Eligible Interest rate on CRR balance is?
271. What is the validity period of traveler's cheques?
203
272. Under the roadmap for presence of foreign banks in India, the aggregate foreign
Investment from all sources has been allowed upto a maximum of _____% of the paid up
capital while the resident Indian holding of capital has to be at least ____%.
273. Articles left in safe custody can be delivered on the basis of succession certificate or not?
274. Whether loan can be given to a power of attorney holder in case of NRE deposits?
275. Which entities are not eligible under KYC norms?
276. Diamond dollar account (DDA) scheme is available for companies dealing in purchase &
sale of rough / cut diamond. What is the criteria?
277. DICGC deposit cover max. amount of?
278. 1 Kilobytes is equal to how many bytes?
279. What is the validity of Income Tax refund order?
280. How many witnesses are required for nomination by an illiterate person?
281. Mulberry loan is given to?
282. Silviculture relates to?
283. After joining 10 new members in the EURO, what is the total number of members in the
EURO?
284. Paper Gold relates to?
285. DCB register is prepared on?
286. Pensions Accounts can be opened in Joint names or not?
287. Cash in currency chest is held by the bank in what capacity?
288. KYC Norms are not applicable to account of?
289. Transaction in a newly operated accounts are to be kept under close watch at least for a
period of?
290. What will be the status of the nominee after the death of depositor?
291. What is the periodicity of holding the official language committee meating?
292. Frauds of Rs. 1 lac & above should be reported to RBI within 3 weeks from the date of
detection of Fraud. What is the Form for reporting?
293. One of the partners stops payment of a cheque, can other partner revoke the stop
payment?
294. What is the time limit for customer related transactions in RTGS?
295. Is Airway bill a title of goods?
296. What is the New name of Vikas Voluntary Vahini?
297. What is the maximum interest payable on FCNR(B) accounts?
298. What is the maximum interest payable on NRE (SF) and NRE (Term Deposit) accounts?
299. After how many years articles found in the locker room should be handed over the Police, if
owner does not turnup?
300. Who is the Chairman of the IBA?
301. Foreign tourist on temparary visit in India can open which type of account?
302. What is the maximum amount of cash that can be remitted on foot?
303. Who is Dy. Chairman of IBA?
304. Apromissory note executed out of India and stamped at the time of execution with the
proper Indian stamps is subsequently brought to India first holder will have to be stamped
again within?
305. What is the maximum period for issue of notice by the payee to the drawer for bouncing of
cheque under NI, Act?
306. Whether cheque can be issued to an illiterate and blind customers?
307. What is the TDS rate applicable to interest on NRO account?
308. Exporter who wants to avail export credit, the quantum of credit will be determined on the
basis of?
309. ABC Bank has its Head Office in Delhi. It has branches in India. Srilanka and Dubai. For
the purpose of application of UCPDC 500, the branches in different countries shall deemed
to be?
310. Power of attorney or mandate in favour of Minor for locker operation is permited or not?
311. Which bank is celebrating 100 years of his exixtence?
312. Among all nationalised banks, which bank has talked in Global Deposit?
313. What is Bandwidth?
314. What is byte?
315. What is BIT?
316. What is FTP?
317. Define Gateway?
318. What is Binary Code?
319. Explain Buffer?
320. Define Business Continuity Plan?
321. Define Cash Management Services (CMS)?
322. What is IP (Internet Protocol)?
204
323. Define Modem (modulator-demodulator)?
324. What is RAS (Remote Access Service)?
325. What is Virus?
326. Where are the Headquarters of SWIFT?
327. What is Digital Signature?
328. Explain Disaster Recovery?
329. What is Finacle?
330. Define Firewalls?
331. Explain Hacking?
332. What is HTML?
333. Define HUB?
334. What do you mean by ISDN?
335. What is Memory?
336. Define Operating System?
337. What is Phising?
338. Explain RAM?
339. Define Virtual Banking?
340. What is VSAT?
341. Define WAN?
342. Banks conduct Govt. business as agents of?
343. Fidelity Insurance is taken by the bank, in respect of?
344. What is the Validity of RBI Draft?
345. On who's recomendations, Insurance sector was opened?
346. Factoring involves?
347. What is Forfaiting?
348. SLR for FCNRB deposits is?
349. SLR for NRE deposit is?
350. Banks should achieve a minimum level of how much %age investmentFluctuation Reserve
in 5 years?
351. Define Securitisation?
352. Sensex is a basket of how many company shares?
353. Company can raised deposits to an extent of what %age of its capital and reserves?
354. First Indian scrip to be listed on Nasdaq (shere market of USA)?
355. Commercial Paper is a part of?
356. What is the min. size of commercial paper?
357. What should be the min. New Worth of a company to issue a Commercial Paper?
358. Certificates of Deposits are issued in the form of?
359. What is the min. face value of CD?
360. The max. period for Certificate of deposit can be?
361. SIM - Stands for?
362. SMS - Stands for?
363. Define interface?
364. WWW stand for?
365. What is the amount of cash award under employee suggestion scheme?
366. IFSC (Indian Fianancial System Core) has how many digits?
367. Form 15G is taken for which type customers?
368. At the time of closing of cash how many denomination notes will be counted?
369. What is the cash passing powers of JMG Scale I Officer?
370. After how many times of wrong input of PIN, the card will be deactivated for the day?
371. Hom many minimum number of characters should be there in the passowrd of CBS?
372. What is the periodicity of ledger printout in computerised environment?
373. In IPO scam action is taken by RBI under which Act?
374. A customer wants to make a remittance of Rs. 4 lacs to Guwahati. Which is the best way?
375. Banks to implement Ombudsman award after customer's acceptance, which the customer
has to give within?
376. What is the amount of commission to banks for pension payment?
377. In joint SB account with either or survivor condition, a cheque signed by one person &
alteration is attested by second person, cheque can be paid or not?
378. Locker a/c is under joint operation. Request by one a/c holder supported by letter of
authority by the other a/c holder to surrender the locker. Can the locker be surrendered or
not?
379. Whether Loan against FCNR-B can be given to power of attorney holder or not?
380. A bill is drawn against non-trading transaction. What is it called?
381. Minor has a self-operated account, who will nominate?
382. PAN has how many characters in combination of Alpha & numeric?
205
383. Foreign Banks in India and Indian banks having presence outside India to migrate to the
Basel II framework effective?
384. Outer limit for scheduled Commercial banksother than those having presence outside India
to migrate to the Basel II framework has been fixed as?
385. Who is the General Secratery of UNO?
Answers
1. No frilles Account, General purpose credit cards.

2. 6 months old.
3. Date 31 March 2008, Pillars are Minimum Capital requirement, Supervisory Review and
Market discipline.
4. 15.3%
5. USD 1 million
6. Five working days.
7. 6 currencies (latest Addition CAD, AUD) Rests are USD, Pound, Yen, Euro.
8. Overdue export bill statement.
9. 24 months.
10. 7 days.
11. 30 days.
12. Protection from intrusion by hackers.
13. Replacing physical cheque with electronic image.
14. Same day.
15. 10 lacs & more.
16. Penalty equivalent to amount of default and/or imprisonment of one year.
17. Rs. 15,00,000/-.
18. 15%
19. 40%
20. Rs. 250/- per day maximum 25,000/-.
21. Investment in plant and machinery in access of SSI but below 10 crores.
22. Takes stamped receipt.
23. SARFAESI Act (Section 2-9)
24. 7th of next month.
26. In locker accounts under joint operation.
27. USD 2000.
28. USD 10,000.
29. USD 50,000 . per financial year
30. USD 5,000.
31. Rs. 1 lac.
32. 30 Days.
33. T.T. buying rate.
34. Because it has no maturity date and in the form of equity.
35. 14th September
36. Indian Contract Act.
37. Minimum one-year maximum five years.
39. Cheque will be passed.
40. Bank will incur loss.
41. Impound the note after giving receipt.
42. To bring down the liquidity in the system.
43. Bank insures loss.
44. Legal Services Authority Act 1987.
45. NRO account.
46. Rs. 1 crore.
47. It's not defined under any Act.
48. No one, it is the value paid instrument.
49. The property is located.
50. Cheque will be returned.
51. 0% & no limit
52. Vostro account
53. Hypothecation.
54. Demand & Supply.
55. November.
56. Joining of two different notes.
206
57. Rs. 20 lacs.
58. 60 Days.
59. 10 years.
60. Rs. 10 crores & more.
61. One year.
62. Min. of Rs. 100 crore or 15% of assets acquired which ever is more.
63. No, with in the bank of at all branches, no other banks.
64. Pawnee
65. RBI
66. By banks themselves.
67. 7 days to 10 years.(Normally)
68. 50 % of outstanding.
69. It can be filed with the consent of ROC for the next 30 days.
70. Three weeks from the date of detection.
71. 7.75% and 6%.
72. Pledge and lien.
73. 5% of their net bank credit.
74. Rs. 15 lacs.
75. Section 24 of BR Act.
76. Civil court.
77. 7 days.
78. More than Rs.5, 000/-.
79. 10
80. Maximum 2 years from the date of cause of action.
81. RBI act Section 42 and section 18 of BR Act (for non-schedule commercial Banks).
82. Not Negotiable.
83. Capacity to borrow on the basis of owned funds.
84. Safe custody.
85. 1 year.
86. Less than 10,000/-
87. Amount in words to be paid under section 18 of NI Act.
88. Half yearly.
89. Rs. 1,95,000/-
90. Ad-Val Orem - according to usance period and amount.
91. Saving bank accounts.
92. 60 years and above.
93. Landlord - Tenant.
94. Inflow of foreign exchange.
95. Rs. 10 lacs.
96. Under KYC guidelines of RBI.
97. 15th of each month.
98. Transaction in foreign exchange.
99. Reverse Repo - Sale of securities.
100. Protested account.
101. 3 years.
102. 18 months & DGFT (Director General of Foreign Trade).
103. A/c Payee crossing.
104. Illiterate & minor.
105. Y. V. Reddy
106. Dr. C. Rangrajan
107. 20
108. Net demand and time liabilities.
109. Whole of India accept J&K.
110. 25
111. Rs. 1 lac and more.
112. 12 months.
113. 14 September
114. 40%
115. Rs. 5 crores
116. Sugar, Tea, Film & Services
117. 10 crores
118. 25 lacs
119. 74%
120. 100%
121. Rs. 5 crore & in multiple of 5 cores
207
122. The Treasury and Securities.
123. Prof. V.S. Vyas.
124. Section 25 of NI Act.
125. Bill of exchange.
126. Next preceding day.
127. Incomplete
128. 48 hours
129. 18%
130. Only if one bank is acting as agent of the other bank.
131. Two years and/or double the amount of cheque under section 138 of NI Act
132. under KYC norms.
133. It will not apply to the joint account.
134. Joint safe custody.
135. 3 years.
136. Yes it can exercise for existing debts before acting on the orders.
137. Mother, on behalf of minor sons
138. Indian Trust Act 1882.
139. Saving Fund, Current Account & overdue term deposits.
140. Term deposits and recurring deposits?
141. 1% for maturity of < 5 years, 0.5% for > 5 years.
142. To check the proceeds of crimes are converted into white money thorough a series of
financial transactions.
143. 20 years
144. Fortnightly basis.
145. Rs. 25
146. 0 balance
147. Rs. 1,000/- and no limit.
148. Rs. 1 lac
149. 3 years & 10 years.
150. Rs. 100 & more in multiples thereof.
151. 6 months to 120 months in multiples of 3 months.
152. Rs. 100 or 10 times of core amount.
153. 25,000/-
154. Rs. 5,000/-
155. 50,000/-
156. 7 Days to 45 Days.
157. Rs. 5 lac
158. Rs. 1 lac
159. Rs. 5,000/-
160. Rs. 500/-
161. Rs. 5,000/- (For government accounts it would be nill)
162. Rs. 25,000/- (with a minimum sweep out/sweep in of Rs. 5,000/- and in multiples of Rs.
5,000/-)
163. Either 90 or 179 days.
164. Customer who maintained minimum balance of Rs. 20,000/- through out the previous
month or QAB of Rs. 20,000/- at CBS branches.
165. 50 withdrawals every half-year.
166. 24 operations in a year.
167. Rs. 35 per operation exceeding 24.
168. Rs. 15,000/- or the last salary credited whichever is lower.
169. 0
170. The minimum number of account should be 10 or 75 % of the strength of the permanent
employees of the corporate.
171. 0
172. Maximum Rs. 5,000/-, can be enhanced to Rs. 10,000/- in second year provided OD facility
should be into credit once in three months.
173. Rs. 1,000/-
174. Rs. 1 lac
175. The deposits will be accepted at the rate of interest as applicable to Term Deposits and
decided from time to time as per policy of the Bank. On completed quarter basis, interest to
be credited in the month of March every year. The rate of interest in respect of deposit
withdrawn before maturity shall be interest applicable to the period for which the deposit
has remained with the Bank without any penalty for premature withdrawal. At the request of
the customer, interest may be actually credited to the connected Savings/Current Account
on quarterly basis on Due Date.
208
176. Rs. 5 lacs
177. Swap
178. To take the advantage of quoting of different rates in different markets.
179. 182 Days
180. Companies and other corporate bodies which are owned to the extent of at least 60% by
individuals of Indian Nationality.
181. 1st June, 2000
182. Not defined anywhere.
183. Currency notes within 90 days and TC's within 180 days of return.
184. Gainer
185. Non Resident Indian
186. 100%
187. 25th January
188. 10% of amount & 5% of quantity.
189. Green clause letter of credit
190. Once only
191. 180 days
192. Sale transaction
193. Bill selling rates.
194. 21 days
195. Section 17 (1) of Banking Regulation Act
196. Sans Recourse Endorsement
197. 45 Days
198. 30 Days
199. In loan accounts BPLR, in other accounts FD rate applicable to the delayed period in case
delay in more than 90 days, it would be 2% above FD rate and in case of bills it is 2%
above SF rates.
200. 18 months from the date of balance sheet or 15 months from the last day of month in which
rating was approved.
201. Where the installment is overdue for more than 30 days.
202. 150 %
203. Hub & gateway & branch servers
204. Electronics data interchange
205. Off line servers
206. Transmission control protocol
207. Internet protocol
208. 100 %
209. More than Rs one lac.
210. Encrypted signature of sender
211. Sec. 47 of BR act
212. PIO
213. Importer will be benefited
214. 5 %
215. 8.1%
216. Mr. Same Pitroda
217. S.S.Tarapore
218. The interest rate should not exceed LIBOR/SWAP – 25 basis points.
219. Minor can admitted only for the benefits of the firm .His liability is limited to his share in the
firm
220. No, Minor or his guardian need not signed AOF
221. Bank should stop operations to avoid application of rule in claytons case
222. Certificate of commencement of business is not required in case of joint stock Co.
223. Copy of memorandum of association, articles of association, certificate of incorporation and
resolution from board of director.
224. Cheques sent for collection /uncleared effect, amount deposed after the order is received,
debt due or accruing due (FD), items in safe custody
225. 147
226. Yes, so as to bind all parties except him self.
227. Rs.25000/-
228. Personal law
229. Succession certificate required only if, dispute among the legal heirs
230. No.
231. Two
232. Section 45 -Y-BR Act.
233. 50 percent
209
234. Assignment
235. Registrar of firms
236. Fortnightly basis
237. To ensure that banking channel is not used for conversion of illegal funds into legal funds.
238. The cheque will be paid.
239. Endorsement and delivery
240. Option.
241. Red clause LC.
242. Endorsee
243. Unclaimed deposits
244. Sec. 26 of Banking Regulation act.
245. Yes, Account can be opened with joint operation.
246. Which is overdue for more than 180 days.
247. An implied pledge
248. Indemnity,
249. CIF value of imports
250. To stop the borrower to sell the mortgaged properly.
251. Bills of Exchange
252. PPF account cannot be opened in the name of NRI
253. Rs500, Rs 70000
254. Subrogation
255. Infrastructure
256. Virtual Banking
257. Rs. 300 crores
258. 24 hours
259. 5 p.m.
260. 40 %
261. 26%
262. Equitable Mortgage
263. BR Act (Section 35A)
264. International Chamber of Commerce (Paris)
265. 6 months.
266. By depositor himself.
267. EEFC
268. 364 days
269. Issuing Bank
270. 1% but wef 14.04.2007 @0.50%
271. No limit until the payment is made.
272. 74, 26
273. Not
274. Yes
275. PARTNERSHIP, PVT LTD, HUF, JOINT VENTURE
276. Company should have good track record of ateast 3 years in business of diamonds and
annual turnover of atleast Rs. 5 Crores & above in preceding three licensing year.
277. Rs. 1 lac
278. 1024 bytes
279. I.T. Order is valid for 3 months.
280. 2 persons
281. Sericulture
282. Trees
283. 25 members
284. Special Drawing Rights
285. 30th June
286. Yes, they can be opened in the Joint names of the pensioner and his/her spouse.
287. As an agent
288. Companies
289. 3 months
290. Turstee for legal heirs
291. Quaterly
292. FMR 1
293. No, Signatures of all partners will be required to revoke stop payment.
294. Upto 3 p.m.
295. No
296. Farmers Club
297. Same as LIBOR / SWAP of corresponding maturity- 25 basis points.
210
298. Same as applicable to domestic saving accounts & LIBOR / SWAP + 50 basis points.
299. 3 years
300. Mr. Shri M B N Rao, Canara Bank
301. NRO Account
302. Rs. 1 lac if distance is short.
303. Sh. V Leeladhar
304. 3 months
305. 30 days
306. Yes, cheque book can be issued.
307. 33.99%
308. FOB value
309. Branches of banks in different countries are considered another bank.
310. Permitted
311. Canara Bank
312. Canara Bank
313. The rated throughput capacity of a given network protocol or medium.
314. A set of bits (usually 8 bits) that Operate as a unit to signify a character.
315. Stands for Binary digit. Smallest unit of information recognised by a computer. All digital
information is composed of bits.
316. A protocol that provides for the Transfer of files between two systems. FTP is part of the
TCP/IP Protocol suite.
317. A hardware or software solution that enables communications between two dissimilar networking
Systems or protocols. A gateway can operate at any layer of the OSI Model.
318. A method of representing information the code defines that the electrical impulses that
become computer information (data and programmes) exist in either one of two states. It is
either "on" or "off". The "on" state can be represented by a mark or a "1". The "off" state
can be represented by a "space" or a "O"(Zero).
319. A storage area in RAM where a computer temporarily places data that is being transferred
from one device to another (usually during input / output operation).The plan used to
ensure proper functioning or contiuity of business of a branch in case of failures is Business
Continuity Plan. Failures can be Hardware failure, Software Failure, Link failure etc.
320. The plan used to ensure proper functioning or continuity of business of a branch in case of
failures is Business Continuity Plan. Failures can be Hardware failure, Software Failure,
Link failure etc.
321. It is a management of corporate receivables and payments driven by technology and
ensures corporate commitment to meet the exact requirement. Further, it is a value added
service to corporate to reduce the cost of funds and help to reconcile their accounts. The
cost of collection is very low in comparison to all other traditional methods.
322. A network-layer protocol, documented in RFC 791, that offers a Connectionless
internetwork service. IP provides features for Addressing, packet fragmentation and
reassembly, type-or-service Specification, and security.
323. A device used to modulate and demodulate the signals that pass through it. It converts the
direct Current pulses of the serial digital Code from the controller into the Analog signals
that are compatible with the telephone network.
324. A Windows NT/2000 service that allows access to the network through dial - up
connections.
325. A software program that is Designed specifically to affect a system or network adversely. A
virus is usuall designed to be passed on to other systems with which it comes in contact.
326. Brussels (Belgium)
327. A digital signature is a way of marking an electronic message in a manner that is unique
and probably traceable to the originator. It is supposed to establish the sender's
authernticity much as the ordinary written signature does. Digital signatures are used in
computerised commercial and financial transactions.
328. Recovery from disaster such as server failure, client failure, software failure, link failure,
power or UPS failure etc.
329. Finacle is an integrated, on-line, enterprise banking system designed to provide the "eplatform",
developed by M/s Infosys, Bangalore and being used internationally and also by
major private & foreign banks operating in India.
330. Firewalls are components or set of components that restrict access between a protected
network and the outside world (i.e. the internet). They control traffic between outside and
inside a network, providing a single entry point where access control and auditing can be
imposes. In E-banking (i.e. Internet Banking), there is a dual requirement to protect
customer's privacy and protect against fraud. A multi-layered security architecture
comprising firewalls, filtering routers, encryption and digital certification ensures that the
accounts information is protected from unauthorised access.
211
331. Hacking is the process of unauthorised access of network, network resources and
information.
332. Web pages are written in a language called Hyper Text Markup Language (HTML). It
allows users to produce Web pages that include text, graphics and pointers to other web
pages.
333. A device that modifies transmission signals, allowing the network to be lengthened or
expanded with additional workstations.
334. Integraded Services Digital Network. ISDN services are provided by Department of
Telecommunication. ISDN is used for transmitting voice, data and image through the
existing telephone lines. Its speed is 64 kbps.
335. Memory is required by the CPU to carry out its functions. The amount of memory available
to the CPU is an important consideration and is determining factor concerning the
programmes the computer can process and fast the computer can process them.
336. The software that controls the computer. The operating system controls the away
applications and users utilise the computer and its attached peripherals. The examples of
such operting systems are MS-DOS, UNIX, Netware, Macintosh etc.
337. Phishing is a form of social engineering attack used by cyber criminals to steal sensitive
information. Customers of leading Banks throughout the world have been a target of
Phishing. Phishing uses Spam mails to deceive consumers to disclose their credit card
numbers, bank account information, passwords, and other sensitive information. Phishing
attacks involve the mass distribution of spoofed e-mail messages with return addresses,
links, and brandingt that appear to come from legitimate businesses the potential victims
deal with for example, banks, insurance agencies, retailers, credit card companies, or
Internet service providers (ISP).
338. Random access memory. The working memory of the computer into which application
programms and data can be stored and used by data.
339. Banking without physical existence of walls, boundaries through Computer Net working.
340. VSAT stands for very small aperture terminal. VSATs use INSAT-2 series transponders to
provide connectivity. VSATs are now becoming ideal networking aids for organisations
having presence even in remotest areas of the country.
341. Wide Area Network. A network that communicates beyond local cabling, such as across a
city or around the world.
342. RBI
343. Staff
344. 6 months
345. Malhotra Committe
346. Purchasing receivables
347. Purchase of Medium Term Export Receivables without recourse.
348. 0%
349. 25%
350. 5%
351. Converting a debt into a negotiable security.
352. 30
353. 13%
354. Infosys
355. Working Capital
356. Rs. 5 lacs
357. Rs. 4 crores
358. Usance Promissory Note, at a discount to the face value.
359. Rs. 1 lac
360. One year
361. Subscriber Identification Module
362. Short Message Service
363. Point of contact between one device and another.
364. World Wide Web
365. Rs. 1/- to Rs. 10,000/-.
366. 11
367. Below the age of 60 year
368. 3 (hundred, five hundered and thousand)
369. 2 lac
370. 3 times
371. 6
372. Since dispensed with.
373. BR Act
374. EFT (Electronic Fund Transfer)
212
375. 15 days of receipt of award
376. Rs.60/-
377. Yes, cheque can be paid.
378. not
379. not
380. Accommodation Bill
381. Minor cannot nominate.
382. 10
383. 31March 2008
384. 31March 2009
385. Ban Ke Moon
213
Model Test Paper
1. Interest in agriculture , advances is to be charged on:

a monthly basis b quarterly basis c half-yearly basis d yearly basis
e any of the above as per discretion of the bank
2)The CRR is maintained in the form of:

a cash balances with banksb cash balances with RBI c cash balances in Branches of the bank
d cash balances with banks or RBI e band d
3) Increase in bank rate indicates:

a) easy money policy b) tight money policy c) open money policy d) closed money
policy
4) the target fixed by the central Govt. for agricultural credit to be doubled in three years , is to
be achieved by which of the following period:
a) March 2005 b) March 31 2006 c) March 31, 2007 d) march 31, 2008 e) none of the above
5) The loan system of credit delivery is mandatorily applicable for loan accounts having:
a term loan of Rs. 10 crore and above
b fund based working capital limits (MPBF) of Rs.10 cr and above
c non-fund based limit of Rs. 10cr and above d combined limits of Rs.l0 cr and above
e a, b and d
6) Minimum number of banks which can participate in consortium advice is:

a) Two b) Three c) Five d) Ten e) no minimum or maximum is prescribed
7) The renewal of credit limits for working capital is stipulated by RBI on:
a) half yearly basis b) Quarterly basisc) Annual basis
d) bi-annual e) none of these
8) the term gross working capital represents:

a) Current assets and fixed assets b) current assets less current liabilities
c) working capital requirement after deduction of margin
d current assets e current liabilities
9) To review the system of cash credit, which Committee was constituted by RBI during 1980:
a) Tandon Committee b) Chore Committee c) Marathe Committee
d) Rangarajan Committee e) none of the above
10) While sanctioning credit facilities to their borrowers, the bankers calculate a no. of ratios.
Which of the following ratios is more relevant for sanction of term loan?
a debt equity ratio b return on investment c debt service coverage ratio
d current ratio e Return on equity
11) A partnership firm has been sanctioned working capital limit of Rs.30 lac for its SME unit at
minimum of 20% as per Nayak Committee. What is the amount of projected sales?
a Rs.300 lac b Rs.200 lac c Rs.150 lac d Rs.l00 lac e Rs.60 lac
12) Under the Nayak committee Recommendations, the quantum of contribution of the borrower
is _____ of the projected annual sales:
1) 5% 2)10% 3) 20% 4) 25% 5) need based to give a debt equity
ratio of 2:1
13) The concept of syndication for working capital finance by banks has been suggested for
introduction by:
a: VazCommittee b: Shetty Committee c: Jilani Committee
d: Narasimham Committee e None of the above
14) The pledge is .defined u/s...of Indian Contract Act:

a: 1 72 b:272 c:171 d:372 e 174
15) The person who is transferring the possession of goods as per Indian Contract Act is called:
a: Transferor b:Bailor c: Baileed:pledger e pledgee
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16) The charge on movable to be created would be charge known as:
a: Lien b: Assignment c: Mortgage d: Hypothecation e: set off
17)Who can create a valid pledge over the goods:

a: The owner himself b: Co-owners with consent of other co-owners
c: Joint owners, jointly d: Any of the above
18) What is the minimum margin which is required to be maintained while granting advances
against the security of shares of a public limited company which is not listed on a stock exchange?
a 20% b30% c40% d50% e none of
the above
19) Which of the fllowing mortgages is not required to be registered with Registrar of
Assurances?
a: Equitable mortgage b: Simple Mortgage c: English Mortgage
d: Usufructuary mortgage e mortgage by conditional sale
20) In an English mortgage, the mortgagor transfers to the mortgagee:

a: A specific interest in the property b: As much interest as he wishes
c: All the interests in all his properties d: transfer the property with all rights
21)A search report from a legal counsel is insisted upon at least for:
a 3 years b10 years c12 years d30 years
22) Provision for registration of charge on assets of a company, with Registrar of companies is
mentioned u/s …of Companies Act 1956:
a: 126 b:125 c:135 d:141
23) U/S 125 of the Companies Act 1956, the filing of particulars of charge with Registrar of
Companies has to be done from date of creation of charge, within:
a: 35 days b: 37 days c: 60 days d: 30 days e: 15 days
24)In case of non-registration of charge on assets, in . case of a company, the charge will become:
a void altogether b. void before shareholders
c void against all other creditors d void before the liquidator. e void before all the above
25) who will sign documents on behalf of the company while raising a loan:
a) Managing Director b) Executive director
c) Authorised official whose name is mentioned on the resolution
d) at least 2 directs where loan is Rs. 10Cr and above e) none of the above.
26)Pari passu charge incase of a consortium advance by banks to a big borrower means which of
the following
a each bank has equal charge on the security b banks allowed the loan first, will have first charge
c each bank will have charge on security in the ratio of loans sanctioned
d each bank wiII have pro. rata charge on the security in the ratio of their outstanding within the
limits approved by the consortium e all the above
27 )A bill is payable on demand. Its limitation period starts from:

a: Date of the bill b: Date of demand c: date of default
d (a) or (b) whichever earlier e: None of the above
28) What is the time period of limitation in case of a saving bank deposit?
a years from date of deposit b 12 years from date of deposit
c 3 years from date of demand by the deposit for withdrawal
d 3 years from date of failure to demand e limitation not applicable in case of bank
deposits
29)An acknowledgment of debt means:

a: Accepting the liability in writing b: Promising to pay c: Accepting liability and promising to pay
d any of the above e: None of the above
30)When loan accounts of a company show some problem and can be cured by some support in
the form of restructuring, which of the following organisations can be approached by such company?
a: BIFR b: NCTL c: COR d: RBI e: Any of the above
215
31)What is the designation of the officer who proceeds to , recover the dues for DRT after issue
of the Recovery Certificate:
a Presiding Officer b Recovery Officer c Registration Officer d DRT Officer e a
and b
32) What is the amount of court fee for filing a case in a Lok Adalat?
a Minimum Rs.750. b Above the amount of Rs.5 lac, Rs. 1 00 for each Rs.l lac
c Max amount is Rs.l 0000d No court fee is payable e Court fee is discretion of Lok Adalat.
33)The funds collected by NABARD from banks under R'IDF are utilized in which of the
following:
a: For lending to agriculture b: For lending to agriculture and rural industry
c: For investing in rural infrastructure d: All the above
34)Which of the following is an indirect agricultural advances:

a )loan for purchase of tractor to a farmer b) loan for purchase of agricultural implements
c) loan granted to a primary credit coop society for on lending
d) loan granted under the scheme for agro clinics and agro clinics and agro business centres
e) none of the above
35)A firm that supplies one day old chicks for layers and broilers in poultry financing, is called:
a broiler b cullingc hatchery d poultry breeding e c and d
36)Bank deposits grew by_______during the year 2005-06:

a) 14.2 per cent b) 16.9 per cent c) 18.1 per cent d)
20.4 per cent
37) Bank credit rose by__________during the year 2005-06:

a) 15.1 per cent b) 22.7 per cent c) 25.5 per cent d)
29.9 per cent
38) The incremental non-food credit deposit ratio was_______in 2005-06:

a) 58 per cent b) 74 per cent c) 91 per cent d) 113 per cent
39) Which of the following is the purpose of promoting 'No Frills Accounts' as being done by
many banks:
a) To include lower strata of the society in the purview of banking services
b) To ensure that no monetary transaction over and above Rs. 5,000 takes place in cash
c) To help banks in maintaining themselves in those areas where they had opened their branches but
could not get enough business
d) None of the above
40) Which of the following foreign banks has started its retail business in India for the first time
by opening branches in seven cities:
a) Hong Kong and Shanghai Banking Corporation(HSBC) b) Standard Chartered Bank
c) ABN Amro Bank d) Deutsche Bank
41) Which of the following banks has launched a special Credit Card for Small & Medium
Enterprises (SMEs) to be named as 'Power Plus Business Card':
a) ICICI Bank c) UTI Bank b) State Bank of India d) HDFC
Bank
42) Which of the following types of banks in India will now be required to furnish details of their
investments profits, NPAs and also of any penalty imposed on them by the RBI in their balance sheets
with effect from March 2006:
a) All public sector banks b) All private sector banks c) All foreign banks
d) All co-operative banks e) All of the above
43)Banks in which of the following countries are planning to introduce A TMs for the blinds, in
order to promote its social banking at international level:
a)Saudi Arabia b) Japan c) India d) China
44)As per the Finance Minister of India how much amount the public sector banks may need to
raise to meet the increasing credit need in the next 5-6 years as they will be needed to continue to
216
finance 30 per cent of the GDP with the economy growing at the rate of 7 per cent every year:
a) Rs. 10,000 crore b) Rs. 20,000 crore c) Rs. 40,000 crore d) Rs. 60,000 crore
45) As per the market reports the sale of plastic money (credit cards and debit cards) has seen a
sharp growth in India in the last one year. How much increase in terms of percentage it has registered
in the last one year's period:
a) 30 per cent b) 40 per cent c) 50 per cent d) 60 per cent
46)The Reserve Bank of India has created a new department called Financial Market
Department (FMD) w.e.f July 2005. Which of the following is / are the functions of the FMD:
a) It will look after its debt management functions independently:
b) It will look after its monetary operations separately
c) It is created to keep an eye on the functioning of the stock markets in India
d) None of the above
47)In which year India signed the World Bank Articles of Agreement:
a) 1942 b) 1945 c)1947 d) 1956
48)Who has been appointed as the chairman of the advisory on flow of credit to agriculture and
related activities from the banking system set up by the RBI:
a) Ranjan Kumar b) V.S. Vyas c) S. Selvaraj d) Y.V.
Reddy
49)Which among the following companies has won the Economic Times Award for company for
the year 2005:
a) HDFC Bank b) ICICI Bank c) UTI Bank d) Deccan
Airways
50)Name of the Asian nation who fIrst got a loan from the World Bank:
a) Sri Lanka b) India c) Japan d) Pakistan
ANSWER
1d 2b 3b 4c 5c 6a 7c 8d 9b 10 c 11 c 12 a
13 b 14 a 15 b 16 d 17 d 18 e 19 a 20 c 21 c 22 b 23 d 24 d
25 c 26 d 27 a 28 c 29 a 30 c 31 b 32 d 33 c 34 c 35 c 36 b
37 d 38 d 39 a 40 d 41 d 42 e 43 e 44 d 45 c 46 a 47 b 48 b
49 a 50 b
217
Model Test Paper
1) Karta of an HUF maintaining account with your branch has gone abroad. He has appointed
an agent for operating the HUF account, who is not a family member:
1) Only family members can be delegated the authority
2) Coparceners can ask the bank to stop the operation in the account
3) HUF will be dissolved
4) Karta has absolute authority to appoint any person as an agent and he need not to be a family
member
5) Karta can delegate the authority only next Sr most member of family.
Ans: (4)
2) Which one of the following crossing has not been defined by any Law?
1) Not negotiable crossing, 2)Double crossing,
3) Account Payee crossing, 4) General Crossing, 5) Special crossing.
Ans: (3)
3)Which one of the following has been prohibited from opening of FCNR(B) account?
1) Persons of Indian Origin 2)Overseas Corporate Bodies, 3) Students
4)NRIs 5)None of the above
Ans: (2)
4) Primary liability for registration of charge for loan to a limited company is of:
1) Banker. 2) Creditor, 3) Company. 4) Registrar 5)None of the above.
Ans: (3)
5) Bank guarantee is defined under:

1) Banking Regulation act, 2) Negotiable Instrument act,
3) Transfer of Property act, 4) Indian contract act, 5) Indian Mortgage act.
Ans: (4)
6)You have made an advance against the pledge of NSC and borrower has expired. On search, it
is found that on the face of NSC nomination in the favor of his minor son has been done. What is
the position of a banker?
1) Since the nomination is in favor of minor, bank can not invoke its pledgee rights on NSC
2) Nomination on NSC affects the pledge rights of the bank; therefore bank can not invoke its pledge.
3) Since nomination is in favor of his son. Who is one of the legal heirs, bank can exercise its right of
pledge but with the consent of guardian of the minor.
4) Since nomination is in favor of his son, who is one of the legal heirs, bank can exercise its right of
pledgee without the consent of the nominee.
5) Nomination on NSC does not affect banks right of pledgee, bank can invoke its pledgee rights.
Ans: (5)
7) A partnership firm consisted of X, Y and Z(minor) as partners, maintains a current deposit a/c
with your bank. The firm wants the limit against a FOR which is in the name of Z minor (son of
X). Will you accede to the request of the firm?
1 ) Provided the documents are executed by X along with other partner
2)Provided the documents are executed by the guardian on behalf of the minor
3) After obtaining an undertaking from the guardian of the minor that the money is required for the
benefit of the minor
4) No. over draft can be allowed to the firm in the given case
Ans: (3)
218
8) On making a demand on the guarantor he makes the payment of the loan to the bank. What
kind of right on the assets charged to the bank is got by the surety/guarantor under such
circumstances:
1 ) Right of lien 2) Right of redemption 3) Right of foreclosure
4) Right of subrogation 5) Right of set off.
Ans: (4)
9) The Equitable Mortgage is created when:

1) The borrower transfers his equitable rights in the property to the creditor (i.e. the bank)
2) The borrower delivers to the creditor or his agent the title deeds of the property with an
intention to create a mortgage.
3) The borrower delivers possession of his property to the creditor (i.e. bank)
4) The borrower delivers title deeds to creditor or his agent for creation of mortgage
5) None of these
Ans: (2)
10) A cheque is presented through clearing in which the amount expressed in words and figures
differs. Acting strictly in accordance with the provisions contained in the Section 18 of Negotiable
Instruments Act, 1881 you will:
1) Pay the cheque for the amount expressed in words
2) Pay the cheque for the amount expressed in figures
3) Return the cheque with the remarks "amount in words and figures differs"
4) Pay the cheque for the amount expressed in words or figures whichever is less
Ans: (1)
11) A farmer has been allowed an advance for irrigation equipment. He normally produces
wheat and paddy. He has failed to repay the due installment of his loan, which had fallen due during
July 2005. The loan will become NPA after :
1)One harvest season 2) one crop session 3) two harvest season
4)two crop seasons 5) maximum within one year.
Ans: (3)
12) in which of the following methods , a bank can calculate capital adequacy ratio:
1) Capital /risk weighted assets 2) capital+ reserves/risk weighted asset
3) capital fund/credit assets 4) capital fund/risk weighted assets
5) risk weighted assets/capital fund
Ans: (4)
13) which among the following is true in case of objective of setting up of CIBIL?
1) to collect information about bank NPAs
2) to collect credit information on behalf of RBI and CVC
3) to collection information about bank business for helping RBI
4) to collect positive and negative credit information and disseminate the same
5) a to c all
Ans: (4)
14) A customer tenders to the bank an outstation cheque of Rs. 10000 for collection and also
request for instance credit of the cheque, to which bank agrees. What would be bank called:
1) Agent of the customer 2)holder for value 3) holder
4) holder in due course 5) special holder in due course
Ans: (2)
15)You are approached by an SME that is engaged in an industry, where raw material is
available in a particular season of two months only. assessment of working capital for this would be
made by the bank:
219
1) as per cash budget method 2) as per turnover method of Nayak Committee
3) as per Chore Committee method 4) as per 1st method of Tandon Committee
5) as per 2nd method of Tandon Committee
Ans: (1)
16) The comparison of the balance sheet of a firm reveals that increase in its long term uses are
125% of increase in its long term sources. Which of the the following must be true:
1) debt equity ratio changed 2) current ratio changed 3) stock turnover ratio
changed
4) debt service coverage ratio changed 5) nothing changed
Ans: (2)
17) In order to sell an asset charged to the .bank under SARFAFSI Act, which among the
following is true?
1) any kind of asset can be sold if it is charged to the bank
2) all kinds of loans are covered except agriculture loans
3) before possession 30 day's notice and before sale 60 days' notice is required
4) before possession 60 days' notice and before sale 30 days' notice is required
5) sale can be made after getting permission from DRT.
Ans: (4)
18) What is the amount of court fee for filling a case in a Lok Adalat?
1) Minimum Rs.750. 2) Above the amount of Rs.5 lac, Rs.l00 for each Rs.l lac
3) Max amount is Rs.10000 4) No court fee is payable 5) Court fee is discretion of Lok Adalat.
Ans: (4)
19) In case of SME units, which among the following is correct with regard to the sub-target to be
achieved by banks:
1) 25% of SME advances should be to SME with investment in plant & machinery upto Rs.25 lac
2) 20% of SME advances should be to SME with investment in plant & machinery above Rs.5 lac & up
to Rs.25 lac
3) Minimum 40% of SME advances should be to SME with investment in plant & machinery above.25
lac
4) 20% of SME advances should be to SME with investment in plant & machinery above Rs.25 lac
5) all the above
Ans: (2)
20) What kind of right/charge, out of the following is created/available on a fixed deposit receipt
issued by a banking company:
1) lien 2) assignment 3) pledge 4) hypothecation 5) none of the above
Ans: (5)
21)As per Saving Fund Account Scheme for Students, what is the maximum amount of overdraft
available to a student in the 1st year of opening of the account? .
1) 5000 2) 10000 3)15000 4) 20000 5) None of the above.
Ans: (1)
22) In terms of RBI guidelines, Banks shall make provision on its net funded country exposures
provided the exposure is____________or more of its total assets.
1)0.5% 2)1% 3)1.5% 4) 2% 5)none of the above.
Ans: (2)
23)"Worms" are related with.

1) Computer Software 2) Computer Hardware 3) Computer Security 4)
Computer Virus 5) None of the above
220
Ans: (4)
24) Mr Ramesh Kappor aged 61 years.is having a term deposit account for a total amount of Rs
10 lacs for the last one year. On 29th March, he requested in writing not to deduct TDS out of his
interest income. He further informed that his total income fall under the taxable category:
1) Since the .interest income will definitely above Rs 5000, his request can not be complied with.
2) Since his interest income is above Rs 5000 and his total income fall under taxable category, his
request can not be acceded to.
3) A Sr Citizen may furnish form 15-H even if his total income fall under taxable category, hence his
request can be acceded to.
4) Upon furnishing of his declaration that he will deposit income tax directly, his request can be
acceded to. A copy of this declaration, however, be sent to Income tax office along with the return of
tax deducted at source.
Ans: (5)
25) What will be the rating of borrower is he gets 78 Score under compliance of 7 parameters?
1) AA .2) A+ 3) A 4) B 5) None of the above.
Ans: (3)
26)Upto what amount of aggregate facilities to a, borrower, the rate of interest has been linked
with Credit Risk Rating of the borrower?
1) 20 lacs 2) 50 lacs 3) 100 lacs 4) 200 lacs 5)1200lacs
Ans: (1)
27)What is monetized deficit?

1) Deficit on account of short supply of money
2) Deficit on account of short supply of new currency by RBI
3) Budgetary deficit which is being met by the issue of fresh currency notes.
4) Budgetary deficit arising on account of short receipt of direct and indirect taxes
Ans: (3)
28) Market Stabilization Scheme (MSS) has been started to:

1.To absorb excess liquidity from market.
2)To manage liquidity of the market
3) To provide support to Clearing Corporation of India Ltd
4) To provide support to SCBs at the time of liquidity crisis. 5) None of the above.
Ans: (1)
29)What is the minimum margin requirement in caseof consumer loan scheme of the Bank?
1) Nil 2) 5% 3) 10% 4) 15% 5) 25%
Ans: (3)
30) A firm is having short terms sources more than the short term uses. Which one of the
following is true?
1) Firm is having excess liquidity
2) Contribution of the firm in the shape of margin is higher than required
3) Contribution of the firm in the shape of margin is lower than required .
4) There is diversion of bank funds 5. None of the above.
Ans: (4)
31) In terms of Company act, if number of partners in a partnership firm are more than 20 for
doing normal business and more than 10 for doing banking business, that association will be____.
1. Invalid association 2. Valid Association
3. illegal association 4. Legal association 5. Void Association
Ans: (3)
221
32) RBI has increased Risk weights to commercial real estate from _____% to____% to cater to
the continued rapid expansion in credit to these sensitive sector.
1. 100% : 125% 2. 125% : 150% 3. 150% : 175% 4. 100% : 150% 5. None
Ans: (2)
33) While making advances to 3rd party against bank deposits having residual maturity upto 5
years, what are the margin requirements? .
1. 7.5% 2. 15% 3. 20% 4. 25% 5. None of the above.
Ans: (3)
34) Under Bank scheme for financing against IP, the value of IP should be at least______ of the
limit assessed.
1. 80% 2. 125% 3. 100% 4. 150% 5. 200%
Ans: (2)
35)The proposal for agriculture loan upto Rs 5 lacs under BM power should be disposed off
maximum within______.
1. 2 weeks 2. 3 weeks 3. 5 weeks 4. 7 weeks 5. None of the above.
Ans: (2)
36) Finance Minister has advised Banks to adopt ____ approach for increase in Agriculture
Credit.
1. Service Area Approach 2. Group Approach
3. Lead Bank Approach 4. Constructive Approach 5. None of the above.
Ans: (4)
37) For group finance (SHGs) under SGSY subsidy. is available at the rate of:
1) 25% with maximum of Rs. 1 lakh 2) 50% with maximum of Rs. 2.5 lakh
3) 20% with maximum of Rs. 50,000 4) 50% with maximum of Rs. 1.25 lakh 5)
None
Ans: (4)
38)General Credit Card can be issued by branches situated in______.

1. Rural Area 2. Semi-Urban Area
3. Urban Area 4. (1)&(2) 5. (1), (2) & (3)
Ans: (4)
39) In the Union Budget, for 2008-09 the Govt has raised the Threshold exemption limit for
Income Tax from Rs.1,10 lakh to Rs. _____ lakh.
1. 1.50 lakh 2. 1.25 lakh 3. 1.75 lakh 4. 1.85 lakh 5. None of the above.
Ans: (1)
40) For financing under Employee Stock Option Scheme, margin requirements are at ____ and
the maximum limit is Rs________.
1. 5% : 20 lacs 2. 10%: 20 lacs 3. 5% : 10 lacs 4. 10%: 10 lacs 5.
None
Ans: (2)
41) The term EFT means:

1) Electronic foreign transfers 2)Electronic financial transfers
3) Electronic funds transfer 4)Electrical funds transfer
Ans: (3)
42) What is “Firewall “ in a computer?
222
1) It protects the computer from E-mail viruses,
2) It protects the memory of the computer from being burnt by fire.
3)It protect the Hard disk form electricity shocks during operations.
4) It protect computer from internet hackers and un-authorized instructions
Ans: (4)
43)What is Web cookies

1) It keep tracks on web sites 2)These are hackers on the web
3)A name of virus 4) A name of password
Ans: (1)
44) What is “De-bugging”

1) Name of an anti-virus software.
2)A technique used by hackers to steal information from a computer
3)A technique used by software professional to detect virus in software.
4)A term which is used for looking for and correcting mistakes in a computer programee.
Ans: (4)
45)In search Engine all searches are done by?

1)Search Directory 2 )Search Disk 3)Memory unit 4) Search light
Ans: (1)
46) On conversion of Bombay stock exchange to BSE Ltd, SEBI ordered to reduce share
holding by single entity to max __________________?
Ans: (49%)
47) Target for tiny units out under SME finance___________?
Ans: (60%)
48) Minimum period for issue of CP___________?
Ans: (7 days)
49) Under Ombudsman scheme 2006, reply by Bank for complaint by customer:______?
Ans: (30 days)
50) Under Ombudsman, complaint may be lodged by customer after getting reply from bank if
he is not satisfied with the reply within: ________?
Ans: (12 months)
223
CONCEPT OF PRIORITY SECTOR
1. Loan upto what limit is considered as “Micro Credit”?

2. Service activities like – small business, P & SE, SRWTO are included under which
category of PS Advance:
3. Educational Loans to individuals upto______- limit is classified as Priority Sector advance
4. Housing Loan upto ________ limit is classified as PS Advance
5. Under the classification of small enterprises, what is the ceiling of investment in plant &
machinery/equipments
6. What is the investment ceiling for classification as micro enterprises
7. Advances upto what limit is classified as Retail Trade
8. Advances to minority community are classified under which category under PS advances?
9. Whether export credit is a PS advance?
10. Assistance given to non-government agencies (approved by NHB) as refinance for
construction/reconstruction of dwelling units or for slum clearance is a PS advance. What
is the ceiling of loan for this classification? (Rs 5 lac per dwelling unit)
11. Shortfall in PS advance target of scheduled commercial banks is to be filled up by
contribution to which agency/fund?
12. What is the total PS advance target for a bank?
13. The PS advance target is linked to which amount?
14. What is the target of agriculture advances for foreign banks?
15. What is the sub-target for micro enterprises out of total advance to small enterprises?
16. What is the target for advances to weaker sections?
17. Target of 1% for DRI advances is linked to________
18. What is the sub-target under DRI advances
19. Agriculture produce loan upto what limit and period is considered as PS advances
20. Finance to Food & agro based processing units (investment in Plant & Machinery upto
Rs.10 crores) is classified under which category of PS advances
21. Loans upto _________ (limit) for purchase and distribution of cattle feed, poultry feed etc.
is classified under indirect agriculture?
22. Finance to dealers in agriculture machinery is classified under Indirect Agriculture. What is
the ceiling of loan per dealer?
23. As per RBI guidelines (issued in September ‘07) banks may extend collateral free loans
upto _______ (limit) for all new loans sanctioned to SME units as defined under MSMED
Act 2006.
24. What is the cut-off limit for coverage under CGTSI (Now CGTMSE), where loans are
sanctioned without collateral security and 3rd party guarantee?
25. What is the method of lending applicable on working capital limits to medium enterprises:
26. Which method of lending is to be followed in case of sugar, tea, service sector and film
production accounts?
27. For all agriculture purposes, collateral security is waived for loans upto _______ limit
28. What is the % of collateral coverage required for agrl. Loans above Rs.1 lac
29. What is the family income criteria for eligibility under PMRY?
30. What is the max.project cost under PMRY?
31. Subsidy available under SGSY is ___________
32. Subsidy under SGSY/SJSRY is kept in which a/c?
33. What is the maximum loan available under DRI scheme? (per beneficiary)
Answers
1. Rs.50000/-
2. Micro & small (service) Enterprises
3. Studies in India :Rs.10 lac Studies in abroad : Rs.20 lac
4. For purchase /construction : Rs.20 lac per family
For repairs – rural/semi urban : Rs.1 lac
- urban/Metro : Rs.2 lac
5. Small – manufacturing enterprises : Rs.5 crores
Small – service enterprises : Rs.2 crores
6. Micro – manufacturing enterprises –Rs.25 lacs (investment in P&M)
Micro- service enterprises : Rs.10 lac (investment in equipments)
7. a) all advances to Retail Traders dealing in essential commodities – fair price
shops & consumer co-op stores
b) advances to Private Retail Traders upto Rs.20 lac
8. Weaker sections
9. It is a part of PS advance for Foreign Banks only.
224
10. Rs.5 lac per dwelling unit
11. RIDF managed by NABARD (Rural Infrastructure Development Fund)
12. 40%, Foreign Banks 32%
13. Adjusted Net Bank Credit (ANBC)or Credit equivalent to amount of Off-balance sheet
exposure, whichever is higher
14. NIL – for Domestic Banks 18%
15. 60% of total advances to small enterprises.
ie.40% to units with investment ceiling of Rs.5 crore (Mfg) and Rs 2 crore (service) and
20% to remaining units under micro enterprises
16. 10% of ANBC or Credit equivalent to amount of Off Balance sheet exposure, whichever is
higher.
17. Total Advances o/s as at the end of previous year
18. c) 40% to SC/ST

d) 2/3 of DRI advance through rural and semi urban branches
19. Limit upto Rs. 10 lac & period upto 12 months
20. Indirect Agriculture Finance
21. Rs. 40 lac
22. Rs.30 lac
23. Rs.5 lac
24. Limit upto Rs.50 lac. Coverage 75% ie. Rs.37.50 lac
25. Limit upto Rs.5 crore will be assessed on the basis of 20% of projected annual turnover (as
in line with small enterprises). Limit above Rs.5 crore will be assessed as per MPBF
system.
26. Cash Budget Method
27. Rs.1 lac.
(for Agri clinics/agri-business centre – Rs.5 lac)
28. 75% of loan amount : small/marginal farmers
100% of loan amount: other farmers
29. Family income should not exceed Rs.1 lac per annum and in case of parents income it
should not exceed Rs.1 lac per annum.
30. Manufacturing/Industry :Rs. 5 lac
Business/Service : Rs. 2 lac
31. a) For individuals - 30% of Project cost : maximum 7500/-
b) For SC/STs - 50% of project cost : Max. 10000/-
c) For Group/SHG - 50% of project cost : Max.Rs.125000/-
32. Subsidy Reserve Fund a/c
33. a. Rs.15000/-
b. Rs.20000/- for Housing purpose
225
30. What is the max.project cost under PMRY?
31. Subsidy available under SGSY is ___________
32. Subsidy under SGSY/SJSRY is kept in which a/c?
33. What is the maximum loan available under DRI scheme? (per beneficiary)
226
227

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SURE SUCCESS QUESTIONS

An ebook on Bank Promotion Tests and Interviews

(Updated upto July 2008)

Test Papers with Multiple Choice

14. Maximum FDI investment in Banks in India is allowed_____?

21. Biometric Security is based on biological characters viz.

23. In India, the Cyber Law is called

25. For Security SFMS depends on

26. Restrictions on access to a computer system by the unauthorised persons is through:

35. Interest subvention of_______% is allowed to commercial banks in case of advances to

3. CTR- monthly reporting to FIU-IND by the Corporate office with in ________Days.

4. Recently, Banks were advised to strengthen branch level Customer committees by

8. What is the latest guideline from RBI about Savings accounts?

17. For a study of long term growth of the economy we use_____?

20. The meeting of OLIC (Rajbhasha committee) is held once in _______.

22. Inflation occurs when aggregate supply is________.

28. Committee for computerization in Bank:

31. The term ‘WAN’ stands for –

32. Open Systems Interconnection (OSI) Model consists of ___________.

35. Internet is _________.

36. ‘PIN’ in Smart Card is called _____.

37. A MODEM is connected in between a telephone line and a _____

38. “Buy Now – Pay Now” is commonly used for _________.

39. A leased line can transmit _________.

2. Foreign Insitutional investment (FII) stake in a private bank can be maximum:

12. CRR is fixed by RBI under :

17. Smart Card is _____.

19. The word “FTP’ stands for __________.

20. Threats of physical damage to the hardware is from ______.

21. A collection of raw facts is called ________.

24. INFINET(Indian Financial Network) was developed by

26. The term ‘HTML’ connotes_________.

27. The primary communication protocol on Internet is ________.

30. A promissory note issued as payable to bearer violates :

32. A Bancmate system uses

34. A scanner is a________.

38. PNBs’ Internet Banking Services can be made available to

1. Charge of a car financed to a limited company, will be got noted with :

34. The term ‘TCP/IP’ stands for –

d. Off-site Surveillance Audit e. None of the above.

28. What is not the function of a Management Accountant.. ?

33. Inequality in income & wealth is shown by_____.

Ques 16: The term `cash loss’ means:

Ques 7: Stamp duty payable on a promissory note is as per:

Ques 10: A nomination can be accepted in favour of a:

Ques 16: Letter of Administration is issued in case of

Ques 23: Foreign Exchange Rates in India are determined by:

Ques 25: In the bills accounts, NPA is an account where:

Ques 3: Which of the following is an indirect agricultural advances:

Ques 13: Transferable letter of credits can be transferred:

Ques 17: The term `cash loss’ means:

Ques 21: WAN stands for:

Ques 22: ALM technique helps in disclosing which of the following:

Ques 9: An 100% export oriented unit is one which:

Ques 15: Which of the following statements is true:

Ques 19: Which of the following endorsements is invalid:

Ques 20: An order cheque is endorsed in blank:

Ques 22: The assignee of a negotiable instrument is:

Ques 23: Self-Help Group in priority sector is a:

Ques 13: Which of the following alterations is not a material alteration:

Ques 19: Out-of-order in the cash credit account is an account where:

Ques 1: Which of the following will not be considered as intangible assets ?

Ques 2: Prepaid Insurance is shown in the balance sheet of a firm as:

Que 65 On CRR the banks get interest _ on _: