1

1. Banks in our country normally publicize that

additional interest rate is allowed on retail domestic
term deposits of ____
a) Minors
|b) Married Women
c) Senior citizens
d) Government Employees
e) Rural residents
2. When the rate of inflation increases ___
a) Purchasing power o money increases
b) Purchasing power o money decreases
c) !alue o money increases
d) Purchasing power o money remains unaected
e) "mount o money in circulation decreases
3. A centralized database with online connectivity to
branches internet as well as A!" network which has
been adopted by almost all ma#or banks of our country
is known as ___
a) #nvestment $an%ing
b) &ore $an%ing
c) Mobile $an%ing
d) 'ational $an%ing
e) Specialized $an%ing
$. Which of the followin% is &'! considered a money
market instrument(
a) (reasury $ills
b) Repurchase "greement
c) &ommercial Paper
d) &ertiicate o )eposit
e) Shares and $onds
). Which of the followin% is necessary while openin%
deposit accounts in banks(
a) Will
b) Registration
c) 'omination
d) #ndemnity
e) Guarantee
*. Which of the followin% is not a bankin% term(
a)* +etter o credit
b)* M#$,R
c)* -actoring services
d)* Entry load
e)* 'one o these
+. Which of the followin% or%anizations issue the rules
of %lobal trade(
a) #M-
b) World (rade ,rganization
c) -oreign trade
d) G./0
e) 'one
,. 'ne sin%le statement that depicts the financial
position of a Bank and - or Business enterprise at a
%iven point of time is called.
a) Statement o product details
b) -oreign e1change
c) $alance Sheet
d) $alance o payment
e) (rading and Manuacturing account
/. !he 0everse "ort%a%e 1cheme is launched to %ive
benefit to which of the followin% %roups of society(
a) Persons below 20 yrs
b) Senior &itizens
c) 3nemployed youth
d) ,rphans
e) "ll the above
12. 'ne of the ma#or challen%es bankin% industry is
facin% these days is curbin% deliberate efforts of some
people to brin% money earned throu%h ille%al activities
in circulation. Which of the followin% act is passed to
prevent this activity(
a) Payment 4 settlements "ct
b) &ontrol money supply "ct
c) 'arcotics and Psychotropic substance "ct
d) Prevention o Money laundering "ct
e) 'one
11. Which of the followin% scheme is not meant for
investment purposes(
a) 'ational saving certiicate
b) #nrastructure bonds
c) Mutual unds
d) +etter o credit
e) 'one o these
12. Basel norms which are important re%ulatory
stipulations are meant for which sector(
a) #nsurance
b) $an%ing
c) Micro inance
d) Pension unds
e) 'one
13. 1ystematic investment 3lans relates to.
a) Mutual -unds
b) +ie #nsurance &ompanies
c) &ommercial $an%s
d) Post oice savings schemes
e) 'one
2
1$. 4uro money is the official currency of ___(
a) '"(, b)* 3nited 'ations
c) European 3nion d) Germany and England
e) 'one o these
1). Which of the followin% is an e5ample of cash less
purchase(
a) )ebit card b) &redit card
c) "(M withdrawal d) "ll o the above
e) 'one
1*. Whose si%nature appears on 6ndian 0s. 122 note(
a) -inance Minister b) R$# Governor
c) -inance Secretary d) &hairman5 Planning
&ommission
e) 'one
1+. While discussin% investments there is a mention of
short term %overnment security. What is this
investment(
a) )ebenture b) Mutual unds
c) (reasury bill d) Share
e) 'one o these
1,. &B78s are an important part of the 6ndian financial
system. what is meant by this term(
a) 'ew $an%ing -inancial &ompanies
b) 'on $an%ing -inancial &ompanies
c) 'eo $an%ing -inancial &onederation
d) 'on ban%ing -iscal &ompanies
1/. Bankin% loan a%ainst property re9uires the asset to
be free from encumbrances. What does it mean(
a) (he asset to be ree rom any liability
b) (he asset to be properly registered
c) (he property to be ully constructed
d) (he asset should not have multiple owners
e) 'one
22. 0B6 stipulates a healthy mi5 of 8A1A in the
business fi%ures of banks. What is 8A1A(
a) &ustomer "nalysis and Savings Pattern
b) &ost "ppreciation and selling "nalysis
c) &urrent "ccount and saving "ccount
d) &redit and savings "ggregate
e) 'one o these
21. Which one of the followin% is not an electronic
bankin% delivery channel(
a) Mobile !ans b) Mobile Phone $an%ing
c) #nternet $an%ing d) (ele $an%ing
e) "(M
22. !he 0ate at which the domestic currency can be
converted into forei%n currency and vice:versa is known
as the ____
a) E1change rate b) M#$,R
c) #nter ban% &all money rate d) $ase rate
e) +#$,R
23. &ow:a:days Banks are sellin% third party products.
45ample of third party product is.
a) Mutual unds b) (erm deposits
c) &redit cards d) "ll o these
e) 'one
2$. 4lectronic 8learin% 1ervice in banks can be availed
only by.
a) #ndividuals b) &orporates
c) Senior &itizens d) "ll o these
e) 'one

Answers
6) c7 /) b7 8) b7 9) e7 :) c7 2) d7 ;) b7 <) c7 =)
b7 60) d7 66) d7 6/) b7
68) a7 69) c7 6:) d7 62) b7 6;) c7 6<) b7 6=) a7 /0)
c7 /6) a7 //) a7 /8) a7 /9) d*
1.What is the full form of 800 as used in bankin%
sector(
a) &rucial Reserve Rate b) &ash Reserve Ratio
c) &urrent Reserve Ratio d) &ore &urrent Ratio
e) 'one*
2.What is the full form of ;A7 as used in the bankin%
world very fre9uently (
a) +i>uid "dvances -inance
b) +i>uidity "d?ustment -acility
c) +egal "d?ournment -ormality
d) +ocal "dvance -inance e) +ate "rrival o -inance
3.Where is the head9uarters of 6nternational "onetary
7und(
a) Geneva b) Paris c) +ondon d) Manila e) Washington )&
$. "any 0e%ional 0ural Banks are %iven licence to open
branches in small cities and towns. !hese licences are
%iven by.
a) &abinet &ommittee on Economic "airs
b) Reserve $an% , #ndia c) '"$"R)
d) #ndian $an%s@ "ssociation e) 'one o these
). Which of the followin% or%anisations-a%encies is not
associated with the world of Bankin% and 7inance(
a) SE$# b) "M-# c) R$#
3
d) E&G& e) SP&"
*. Banks recover term loan from the parties in 4"6s.
What does the letter <4< represent in the term(
a) Easy b) Eective c) E>uated
d) Essential e) Economical
+. What is the Bank 0ate at 3resent(
a) /A b) 9A c) <*/:A d) <A
e) 'one o these
,. Which of the followin% is not a scheduled commercial
bank(
a) #)$# b) "B#S c) C)-&
d) '"$"R) e) Dota% Mahindra $an%
/. Which of the followin% certainly is an effort in the
direction of 7inancial 6nclusion(
a) #nternet $an%ing b) "nywhere $an%ing
c) 'o.rills "ccount d) -oreign &urrency "ccounts
e) "ll o these
12. Who amon%st the followin% 3adma Bhushan
awardees is a famous Banker(
a) "zim C Prem?i b) Dapila !atsyayan
c) &handa Dochhar d) Waheeda Rahman
e) $ra?esh Mishra
11. Which of the followin% Acts has specially been
launched to facilitate banks in recovery of bad loans(
a) R$# "ct b) $an%ing Regulation "ct
c) &ompanies "ct d) #ncome (a1 "ct
e) S"R-"ES# "ct
12. !he financial assistance or loans of 0s. 12222 by a
bank to a very small borrower will be called(
a) $usiness -inance b) Govt* -inance
c) Micro -inance d) Small -inance
e) DE& inance
13. Who amon%st the followin% cannot work as a
Business 8orrespondent as %iven in the scheme
launched by the banks (
a) Dirana Store b) Post ,ice
c) Sel Celp Group d) " $an% ,icer
e) &o.operative Society
1$. 1ome banks are financin% bi% pro#ects like
construction of roads brid%es etc. 7inacin% such
pro#ects means banks are helpin% e5actly in.
a) #nrastructural )evelopment b) Pro?ect Management c)
)eveloping &ore Sector #ndustry
d) -inancial #nclusion e) "ll o these
1). As we know a lot of new concepts are bein% used in
the field of bankin% these days which of the followin% is
&'! one such concept-product directly associated with
banks (
a) R(GS b) SMS alert c) )emat "ccount
d) "(MF)ebit card e) 'umber Portability
1*. Which of the followin% is &'! a &ationalised bank(
a) 3nion $an% o #ndia b) &entral $an% o #ndia
c) EES $an% d) Syndicate $an%
e) #ndian $an%
1+. 6nterest payable on savin%s bank accounts is(
a) )e.regulated by R$#
b) Regulated by State Governments
c) Regulated by &entral Govt
d) Regulated by R$#
e) Regulated by -inance Minister
1,. !he usual deposit accounts of banks are(
a) &urrent accounts5 electricity accounts and insurance
premium accounts*
b) &urrent accounts5 post oice savings5 ban% accounts and
term deposit accounts*
c) +oan accounts5 savings ban% accounts and term deposit
accounts*
d) &urrent accounts5 savings ban% accounts and term
deposit accounts*
e) &urrent bill accounts and term deposit accounts*
1/. 7i5ed deposits and recurrin% deposits are(
a) Repayable ater an agreed period
b) Repayable on demand
c) 'ot repayable
d) Repayable ater death o depositors
e) Repayable on demand or ater an agreed period as per
ban%@s choice
22. Accounts are allowed to be operated by che9ues in
respect of(
a) $oth savings ban% accounts and i1ed deposit accounts*
b) Savings ban% accounts and current accounts*
c) $oth savings ban% accounts and loan accounts*
d) $oth savings ban% accounts and cash accounts only*
e) $oth current accounts and i1ed deposit accounts*
21. Which of the followin% is correct statement(
a) 'o interest is paid on current deposit accounts*
b) #nterest is paid on current accounts at the same rate as
term deposit accounts*
c) (he rate o interest on current accounts and savings
accounts are the same*
4
d) 'o interest is paid on any deposit by the ban%*
e) Savings deposits are the same as current deposits*
22. Bankin% services delivered to a customer by means
of a computer control system that does not directly
involve banks branch is called(
a) 3niversal ban%ing b) !irtual ban%ing
c) 'arrow ban%ing d) $ric% 4 Mortal ban%ing
e) 'one
23. 7inancial inclusion means provision of (
a) -inancial services namely payments5 remittances5
savings5 loans and insurance at aordable cost to persons
not yet given the ban%
b) Ration at aordable cost to persons not yet given the
same
c) Couse at aordable cost to persons not yet given the
same
d) -ood at aordable cost to persons not yet given the same
e) Education at aordable cost to persons not yet given the
same
2$. When a bank returns a che9ue unpaid it is called(
a) Payment o the che>ue b) )rawing o the che>ue
c) &anceling o the che>ue d) )ishonour o the che>ue
e) (a%ing o the che>ue
2). Who is the 8hairman of the committee constituted
by 0B6 to study issues and concerns in the "icro
7inance 6nstitutions ="76> 1ector(
a) EC Malegamb) )r* D& &ha%raborty
c) &* Rangra?an d) M* )amodaran e) 3sha (horat
2*. Which of the followin% types of accounts are known
as <?emat Accounts<(
a) "ccounts which are Gero $alance
b) "ccounts which are opened to acilitate repayment o a
loan ta%en rom the ban%* 'o other business can be
conducted rom there
c) "ccounts in which shares o various companies are
traded in electronic orm
d) "ccounts which are operated through internet ban%ing
acility
e) 'one o the above
2+. &47! means(
a) 'ational Electronic -unds (ranser
b) 'egotiated Eicient -und (ranser system
c) 'ational Eicient -und (ranser solution
d) 'on Eective -und (ranser system
e) 'egotiated Electronic -oreign (ranser system*
2,. ?istribution of insurance products and insurance
policies by banks as corporate a%ents is known as(
a) General insurance b) 'on lie insurance
c) $ancassurance d) #nsurance $an%ing
e) )eposit #nsurance
2/. 6n respect of partnership business ;;3 stands for.
a) +ocal +abour Promotion
b) +ow +abour Pro?ects
c) +imited +oan Partnership
d) +onger +iability Partnership
e) +imited +iability Partnership
32. What is a stale che9ue(
a) " che>ue issued without drawer@s signature*
b) " che>ue with only signature o the drawer*
c) " che>ue which has completed 8 months rom the date
o its issue*
d) "ny one o the above*
e) 'one
31. 6nterest on savin%s bank account is now calculated
by banks on(
a) Minimum balance during the month
b) Minimum balance rom ;th to last day o the month
c) Minimum balance rom 60th to last day o the month
d) Ma1imum balance during the month
e) )aily product basis
32. ;ar%est shareholder =in percenta%e shareholdin%> of
a &ationalized bank is (
a) R$# b) '"$"R) c) +#&
d) Govt o #ndia e) #$"
Answers.
6) b7 /) b7 8) e7 9) b7 :) e7 2) c7 ;) c7 <) d7 =)
c7 60) c7 66) e7 6/) c7 68) d7 69) a7 6:) e7 62) c* 6;) a7
6<) d7 6=) a7 /0) b7 /6) a7 //) b7 /8) a7 /9) d7 /:) a7 /2)
c7 /;) a7 /<) c7 /=) e7 80) c7 86) e7 8/) d
1. An account that can be opened by business
or%anisations and also individuals is known as a(
a) (erm deposit b) &hec%ing "ccount
c) Saving $an% deposit d) 'o -rills "ccounts
e) &urrent deposit
2. A worldwide financial messa%in% network which
e5chan%es messa%es between banks and financial
institutions is known as(
a) &C"PS b) SW#-( c) 'E-(
d) S-MS e) &C#PS
3. Buy now @ pay later refers to(
5
a) -oreign &urrency b) #nternet $an%ing
c) 3S )ollars d) (raveler@s che>ues
e) &redit &ards
$. Which one of the followin% is not <"oney "arket
6nstrument<(
a) (reasury $ills b) &ommercial Paper
c) -i1ed )eposit d) E>uity Shares e) 'one
). Which one of the followin% is a retail bankin%
product(
a) Come +oans b) Wor%ing capital inance
c) &orporate (erm +oans d) "ll the above
e) 'one
*. 7inance "inistry has asked the 0B6 to allow common
A!"s that will be owned and mana%ed by non:bankin%
entities hopin% to cut transaction costs for banks. 1uch
A!"s are known as(
a) $lac% label "(Ms b) ,site "(Ms
c) ,n site "(M@s or red "(Ms d) (hird party "(Ms
e) White label "(Ms
+. !echnolo%ical advancement in the recent times has
%iven a new dimension to banks mainly to which one of
the followin% aspects(
a) 'ew "ge -inancial )erivatives
b) Service )elivery Mechanism c) "ny $an%ing
d) "ny type ban%ing
e) Multilevel Mar%eting
,. Which of the followin% is &'! a function of the
0eserve Bank of 6ndia(
a) -iscal Policy -unctions
b) E1change &ontrol -unctions
c) #ssuance5 E1change and )estruction o currency notes
d) Monetary "uthority -unctions
e) Supervisory and &ontrol -unctions
/. Which of the followin% is &'! re9uired for openin% a
bank account(
a) #dentity Proo b) "ddress Proo
c) Recent Photographs d) )omicile &ertiicate
e) 'one
12. What is the ma5imum deposit amount insured by
?68A8(
a) Rs* /5005000 per depositor per ban%
b) Rs* /5005000 per depositor across all ban%s
c) Rs* 65005000 per depositor per ban%
d) Rs* 65005000 per depositor across all ban%
e) 'one
11. !he present 7orei%n !rade 3olicy of 6ndia will
continue till(
a) )ec /06/ b) Mar /068 c) Mar /069
d) Hun /068 e) )ec /069
12. With reference to a che9ue who is drawee(
a) (he ban% that collects che>ue*
b) (he payee@s ban%* c) (he endorsee@s ban%*
d) (he endorser@s ban%*
e) (he ban% upon which the che>ue is drawn*
13. 6n which of the followin% fund transfer mechanisms
funds can be moved from one bank to another and
where the transaction is settled instantly without bein%
bunched with any other transaction(
a) R(GS b) 'E-( c) (( d) E-( e) M(
1$. Bankin% 'mbudsman 1cheme is applicable to the
business of (
a) "ll Scheduled commercial ban%s e1cluding RR$s*
b) "ll Scheduled commercial ban%s including RR$s*
c) ,nly Public Sector $an%s
d) "ll $an%ing &ompanies
e) "ll scheduled ban%s e1cept private ban%s*
1). &ationalization of banks aimed at all of the
followin% e5cept(
a) Provision o ade>uate credit or agriculture5 SME 4
e1ports*
b) Removal o control by a ew capitalists*
c) Provision o credit to big industries only*
d) "ccess o ban%ing to masses*
e) Encouragement o a new class o entrepreneurs*
1*. Which one of the followin% banks is headed by a
Woman 84'(
a) $an% o $aroda b) C)-& $an%
c) &entral $an% o #ndiad) P'$
e) #&#&#
1+. Base 0ate is the rate below which no Bank can lend
their funds. Who sets up this <Base 0ate< for Banks(
a) #ndividuals $an%s $oard
b) Ministry o &ommerce c) Ministry o -inance
d) R$# e) #nterest Rate &ommission o #ndia
1,. What is a <?ebit 8ard<(
a) #t is a card issued by a Rating "gency*
b) #t is a card which can be used or withdrawing cash or
ma%ing payment even in the absence o any balance in the
account*
c) #t is a card which can be used or withdrawing cash or
ma%ing payment at Point o Sales IP,S) i there is balance
in the account*
d) #t is a card issued to borrowers
6
e) #t is a card which can be used or ma%ing S() calls*
1/. Bad advances of a Bank are called(
a) Standard accounts b) $oo% debts
c) 'on Perorming "ssets d) ,ut o order accounts
e) ,verdrawn accounts
22. A5is Bank is a(
a) Public Sector $an% b) Private Sector $an%
c) &o.operative $an% d) -oreign $an%
e) Gramin $an%
21. By increasin% repo rate the economy may observe
the followin% effects ______
a) Rate o interest on loans and advances will be costlier*
b) #ndustrial output would be aected to an e1tent*
c) $an%s will increase rate o interest on deposits*
d) #ndustry houses may borrow money rom oreign
countries*
e) "ll o these*
22. 6ncreased interest rates as is e5istin% in the
economy at present will_______
a) +ead to reduction in borrowings
b) +ead to lower G)P growth*
c) Mean higher cost o raw materials*
d) Mean lower cost o raw materials*
e) Mean higher wage bill*
23. Which of the followin% schemes is launched to
provide pension to the members of unor%anized sectors
in 6ndia(
a) Swabhiman b) Heevan )harac) Heevan Dalyan
d) "SC" e) Swalamban
2$. A che9ue returned for insufficiency of funds. 3ayee
will have ri%ht to issue notice and approach court of law
for #ustice under section 13, of which act(
a) #ndian Penal &ode b) 'egotiable #nstrument "ct
c) &riminal Procedure &ode d) Payment and Settlement
"ct
e) #ndian &ontract "ct
2). "r. 0a#endra had filed a complaint with Bankin%
'mbudsman and is not satisfied with the decision.
What is the ne5t option available for him to %et his
problem redressed(
a) Write to the &M) o the $an%*
b) -ile an appeal beore the -inance Minister*
c) -ile an appeal beore the $an%ing ,mbudsman again*
d) -ile an appeal beore the )y* Governor R$#*
e) Simply close the matter as going to court involves time
and money*
2*. Which of the followin% is an e5ample of 7inancial
assets(
a) 'ational Saving &ertiicate b) #nrastructure $onds
c) #ndira !i%as Patra d) Drishi !i%as Patra
e) "ll o these
2+. Bank branches which can undertake forei%n
e5chan%e business directly are known as.
a) "uthorized dealers b) -oreign dealers
c) ,verseas branches d) "pproved dealers
e) E1change branches
2,. 6nsurance cover for bank deposits in our country is
provided by ____
a) S$# b) Govt o #ndiac) G#&
d) +#& e) )#&G&
2/. !he 7inancial ;iteracy does not include which of the
followin%(
a) Cow to invest the unds
b) Cow to use the limited unds careully
c) Cow to minimize the ris%s
d) Cow to reinvest the money earned
e) 'one o these
32. <A?B< refers to:
a) "medical )evelopment $an%
b) "medical )epository $ureau
c) "dditional )ebit $alance
d) ,nly a4b
e) "sian )evelopment ban%
31. When a banker talks about 8?0 what is he talkin%
about(
a) &orporate )ebt Restructuring
b) &orporate )ebt Rollover
c) &ompany )ebt Rollover
d) &orporate )eposit Restructuring
e) &ompany )eposit Restructuring
32. 45pand the term A;" as used in Bankin%-7inance
sector(
a) "sset +iability Management
b) "sset +iability Maturity
c) "sset +iability Mismatch
d) "sset +iability Manpower
e) "sset +iability Maintenance
33. 8ash 0eserve 0atio =800> and 1tatutory ;i9uidity
0atio =1;0> are terms most closely related to which of
the followin% industries- markets(
a) &apital Mar%et
7
b) $an%ing industry
c) &ommodities mar%et
d) Money Mar%et
e) Mutual unds
3$. What is the ma5imum period for which domestic
term deposits are normally accepted by the banks in
our country(
a) 8 yr
b) : yr
c) ; yr
d) 60 yr
e) 6/ yr
3). 6f you wish to purchase some B1 ?ollars for your
travel abroad you should approach(
a) (he Ministry o -inance
b) (he 3S Embassy
c) "ny $an% $ranch authorized to do such activity
d) (he Reserve $an% o #ndia
e) E1ternal "airs Ministry
3*. What does the letter <;< stands for in the term ;A7
commonly used in financial-economic news(
a) +i>uidity
b) +east
c) +iabilities
d) +ong
e) +i>uid
3+. Which of the followin% is not classified as a
8ommercial Bank(
a) Public Sector $an%
b) -oreign $an%
c) Private Sector $an%
d) Regional Rural $an%
e) 3rban &ooperative $an%
3,. Which of the followin% is not the name of the a
Bankin% 'r%anization(
a) C)-&
b) #)$#
c) EES
d) SE$#
e) #&#&#
3/. "oney launderin% means
a) &oncealment o income source mainly to avoid income
ta1
b) Money ac>uired rom undisclosed sources and deposited
in oreign ban%s
c) Money ac>uired rom undisclosed sources and deposited
in oreign ban%s
d) Process o conversion o money obtained illegally to
appear to have originated rom legitimate sources to
convert blac% money into white money
e) Money ac>uired rom drug traic%ing
$2. "onetary 3olicy as an arm of the economic policy is
administered by
a) Government o #ndia
b) R$#
c) S$#
d) Govt o the respective states
e) 'one
$1. Which of the followin% is not a primary function of a
Bank(
a) Granting loans
b) &ollecting che>uesF drats o &ustomers
c) "rranging !#S" or students or abroad education
d) #ssuing ban% drats
e) Selling GoldFSilver &oins*
$2. 0eserves that can act as a li9uidity buffer for
8ommercial Banks durin% crisis times are
a) &"R
b) &RR
c) &"R 4 &RR
d) &RR 4 S+R
e) S+R
Answers
6) a7 /) b7 8) e7 9) c7 :) a7 2) e7 ;) b7 <) a7 =)
d7 60) c7 66) c7 6/) e7 68) a7 69) b7 6:) c7 62) e* 6;)
a 6<) c7 6=) a7 /0) b7 /6) a7 //) c7 /8) e7 /9) b7 /:) d7
/2) a7 /;) a7 /<) e7 /=) e7 80) e7 86) a7 8/) a7 88) b7 89)
d7 8:) c7 82) a* 8;) e7 8<) d7 8=) d7 80) b7 96) c7 9/) d*
#mplemented w*e** March 065 6<</5 69; Sections with 6;
&hapters J 68<.69/ added in 6=<< w*e** 06*09*<= 4 698 K
69; added during )ec*/00/L
CB41!6'& A&? A&1W401 '& &4A'!6AB;4
6&1!0B"4&!1 A8!
21. &e%otiable 6nstruments Act e5tends to
a* Whole o #ndia
b* Whole o #ndia e1cept in H 4 D
c* ,nly in StatesF3(s
d) 'one
22. 6dentify the 3romissory &ote from the followin%.
a* # promise to pay $ or ,rder Rs*:00
b* # ac%nowledge mysel to be indebted to $ in Rs*6000F. to
be paid on demand or value received
8
c* # promise to pay $ Rs*:00F.5 and all other sum which
shall be due to him
d* a 4 b
23. Which amon% the followin% are the re9uirements of
a 3romissory &ote(
a* #t must contain an unconditional promise to pay a certain
sum o money
b* #t must contain a conditional order to pay a certain sum
o money
c* #t must be payable to the order o speciied person or
bearer
d* a 4 c
2$. D6 "rs. A dau%hter of "r. E e5ecuted and promise
that a sum of 0s.1)222-: has been obtained by me from
"r. B in cash and 6 a%ree to pay thereof that in future
on demand the principal will paid in one lump sum and
this pronote will be taken by meF
a* (he above statement is a promissory note
b* (he above statement can never be considered as
promissory note
c* (he statement can become a Promissory 'ote only ater
alterations
d* 'one o the above*
2). An Bsance promissory note has to be presented for
acceptance by the maker
a* #t is true
b* #t is alse
c* Promissory 'ote is always on demand
d* none
2*. ?emand promissory note attract stamp duty only on
the amount where as Bsance promissory note attract
stamp duty based on the amount and the period GtenorH
a* (rue
b* -alse
c* Partially true
d* "ll o these*
2+. 1tamp duty on 3romissory &ote is.
a* Same throughout #ndia
b* !aries rom state to state
c* both are correct
d* none
2,. 3romissory &ote payable to bearer.
a* &an be drawn by anybody
b* &annot be drawn by everybody
c* #t all depends on advocates
d* 'one o these*
2/. Bill of 45chan%e is defined in 1ection II.of
&e%otiable 6nstruments Act
a* 9
b* :
c* 2
d* 'one
12. Bank &otes and 8urrency &otes are
a* Promissory 'otes
b* 'ot Promissory 'otes
c* Semi Promissory 'otes
d* 'one
11. Bills of 45chan%e should always contain.
a* " conditional order to pay a certain sum o money
b* $oth a 4 b
c* 3nconditional order to pay a certain sum o money
d* 'one o these
12. A Bills of 45chan%e in vernacular lan%ua%e is called
as
a* Cundi
b* #t cannot be drawn li%e this
c* !achancccpatra
d* none
13. Acceptance is necessary in case of.
a* )emand $ill
b* 3sance $ill
c* $oth a or b
d* 'one o these
1$. At si%ht Bills of 45chan%e are also called as
a* )emand $ills
b* 3sance $ill
c* $oth a and b
d* 'one o these
1). !he word after si%ht in Bills of 45chan%e means
a* "ter acceptance
b* ater payment
c* either a or b
d* 'one
1*. !he liability of ?rawee in an Bsance bill of e5chan%e
starts
a* When bill is drawn
b* when the bill is accepted by him
c* +iability is always o drawer
d* 'one
1+. An Bsance bill must be presented to the ?rawee.
a* "t his place o business during his business hours or his
9
acceptance
b* "t his place o business even ater his business hours or
his acceptance
c* "t any place even ater his business hours o the ban%
d* "t the ban%Ms premises during business hours o the ban%
1,. !he bill must be presented to the ?rawee for
acceptance - payment within.
a* /9 hours o receipt o the bill
b* 9< hours o receipt o the bill
c* "ny time ater receipt o the bill
d* 'one o these
1/. What is the time allowed to the ?rawee for
acceptin% the bill(
a* /9 hours e1clusive o public holidays
b* 9< hours e1clusive o public holidays
c* either a or b
d* none o these
22. When rate of interest is not specified in 6nstrument
interest on the amount due is payable at.
a* 6<A p*a*
b* 2A p*a*
c* "t the discretion o )rawee
d* 'one o these
C 1 2 3 $ ) * + , / 12
"ns a a d a b a a b b b
C 11 12 13 1$ 1) 1* 1+ 1, 1/ 22
" c a b d a a a a b a
(he inancial system comprises a mi1ture o intermediaries5
mar%ets and instruments that are related to one another* #t
provides a system by which savings are transormed into
investments* (he R$# IReserve $an% o #ndia)5 being the
central ban%ing authority5 e1ercise monetary control and
supervises the ban%ing institutions* )ierent institutions
such as &ommercial $an%s5 'on $an%ing -inance
&ompanies5 Mutual -unds #nsurance &ompanies5 Primary
)ealers5 bro%ers5 depositories and #nsurance "gents5 also
dierent mar%ets such as the capital mar%et and the money
mar%et are part o the inancial system* (he three
regulatory authorities viz*5 R$#5 SE$#5 ISecurities and
E1change $oard o #ndia5 #R)"I#nsurance Regulatory
)evelopment "uthority)5 are controlling and supervising
the ban%ing5 capital mar%et and insurance sectors
respectively*
49uity and ?ebt "arket.
Every ,rganisation re>uires unds to run their business
beyond the promoterMs contribution* Cence they may raise
the unds through $an%s5 #P,5 Mar%etability o corporate
securities5 i*e*5 bonds5 debentures and convertible
debentures5 enables corporate bodies to raise unds.debt5
wherein debenture holders en?oy very high li>uidity* "ll
securities >uoted on stoc% e1changes and reely bought and
sold on these e1changes can be issued only ater obtaining
approval o the capital mar%et regulator viz*5 SE$#*
1tock 45chan%e.
" stoc% e1change provides a platorm or sale and purchase
o securities on behal o the investors* (hey also provide
clearing house acilities or getting o payment and delivery
o securities* &learing houses guarantee all payments and
deliveries* Securities include e>uities5 debt and derivatives*
49uity and debt instruments.
&ompanies wishing to raise e>uity or debt through stoc%
e1change have to approach a capital mar%et regulator with
the prescribed applications and a proorma prospectus or
permission to raise e>uity and debt to get them listed on a
stoc% e1change*
?epositories.
)epositories K (here are two &)S+. &entral )epository
Securities +td) and 'S)+.'ational Securities depositories
+td hold securities in demat orm* )emat means conversion
o physical securities into electronic orm* (he depositories
transer securities rom sellers account to buyers account in
electronic orm up to instructions rom the Stoc% E1change
&learing Couse5 supported by necessary documentation*
"utual 7unds.
" mutual und is a orm o collective investment that pools
money rom the investors and invests in stoc%s5 )ebt and
other securities* #t is a less ris%y investment option or an
individual investor* Mutual unds re>uire the regulatorsM
approval to start an "sset Management &ompany and each
scheme has to be approved by the regulator beore it is
launched*
CB41!6'& A&? A&1W401
1. Which of the followin% cannot be included in the
definition of a Jfinancial intermediaryK(
"* $an%s and non.ban% inance company
$* inancial institutions
&* mutual und
)* companies engaged in manuacturing o goods
2. Which of the followin% cannot be included in the
money market.
a* call or notice money
b* corporate securities
c* certiicate o deposit
10
d* treasury bills
3. Which of the followin% is a part of the money
market(
"* $onds issued by the govt*
$* bonds issued by public underta%ing
&* term money
)* )ebentures
$. !he central bank authority i.e. in 6ndia is performin%
two distinct roles in the conte5t of money market that
includes.
"* monetary control and ban%ing supervision
$* issue o currency and maintaining o &RR
&* handing govt* business and maintaining price stability
)* ban%ing supervision and inancial stability
). "oney control is e5ercised by 0B6 in 6ndia throu%h.
"* payment system
$* issue o currency
&* cash reserves and li>uid reserve ratios
)* Repo rate and reserve repo rate
*. !he base rate for lendin% of banks are impacted by
0B6 by chan%in%.
"* &RR
$* S+R
&* Repo rates and ban% rate
)* guidelines uFs 8:" o $ R "ct
+. Which of the followin% functions is not comin% under
functions of central bankin% authority 6n 6ndia.
"* supervision over '$-&
$* supervision over the oreign institution invest
&* management o inancial systems
)* regulating the money mar%et
,. Which of the followin% is not the function of capital
market re%ulatory authority i.e. 14B6 in 6ndia.
"* regulating o debt mar%et
$* control over the e>uity mar%et
&* raming the rules or pension unds
)* supervision over listed companies*
/. 1upervision over the depositors and stock e5chan%es
is the role of.
"* R$#
$* #R)"
&* SE$#
)* P-R)"
12. Which of the followin% does not match.
"* regulator o insurance mar%et....#R)"
$* regulator o capital mar%et ...SE$#
&* regulator o money mar%et ...R$#
)* regulator o ore1 mar%et...SE$#
11. Which of the followin% functions is not carried by
60?A in 6ndia (
"* regulator o insurance companies
$* regulating the insurance products
&* regulation over the unds managing pension
)* supervision o the general insurance mar%et
12. !he small companies- or%anizations that have been
created e5clusively to deal in %ovt. securities are called.
"* '$-&s
$* mutual unds
&* primary dealers
)* asset management companies
13. Which of the followin% have been created to provide
lon% term funds for industry or a%riculture.
"* mutual unds
$ inancial institutions
&* asset management companies
)* non.ban%ing inance companies*
1$. Which of the followin% functions is not carried out
by 0B6 .
"* ban%ers to govt*
$* raising deposits rom public
&* lender o last resort to ban%s
)* management o govt* debt
1). !he clearin% house facilities for payment and
delivery of securities is provided
A.14B6
$* stoc% e1change
&* clearing corporation o #ndia
)* all the above
1*. !he funds based outside 6ndia and authorized by
14B6 to invest in 6ndian e9uity market throu%h the
stock e5chan%e are called.
"* oreign institution investors
$* overseas corporate bodies
&* non.resident unds
)* oreigner investment unds
1+. !he corporate securities are held in electronic from
instead of physical
"* Registrars
$* custodians
&* depositors
)* mutual unds
11
1,. Which of the followin% is the role of mutual funds(
"* to promote unit based scheme to inculcate saving habit
$* pooling o investor money or investment in capital
mar%et and other securities
&* manage the unds o high net worth individuals
d* all the above
1/. Which of the followin% is not a correct statement(
"* R$# e1ercises monetary control through &RR and S+R
$* clearing house at various centers are maintained by S$#
c* #R)" is the regulator o insurance mar%et
)* Rising o money through issue o shares by a company
is part o capital mar%et*
22. Brban cooperative banks are controlled by.
"* '"$"R)
b* &entral govt* and '"$"R)
&* state G,!(* and R$#
)* R$# and '"$"R)
6 / 8 9 : 2 ; < = 60
66 6/ 68 69 6: 62 6; 6< 6= /0
) $ & " & & $ & & ) & & $ $ $
" & $ $ &
J6L "lt N -O -ile menu options in current program*
J/L "lt N EO Edit options in current program
J8L -6O 3niversal Celp in almost every Windows program*
J9L &trl N "O Select all te1t*
J:L &trl N -O ,pen ind window or current document or
window*
J2L &trl N SO Save current document ile*
J;L &trl N BO &ut selected item*
J<L Shit N )elO &ut selected item*
J=L &trl N &O &opy selected item*
J60L &trl N !O Paste
J66L &trl N PO Print the current page or document*
J6/L ComeO Goes to beginning o current line*
J68L &trl N ComeO Goes to beginning o document*
J69L EndO Goes to end o current line*
J6:L &trl N End OGoes to end o document*
J62L Shit N ComeOCighlights rom current position to
beginning o line*
J6;L Shit N EndOCighlights rom current position to end o
line*
J6<L &trl N +et arrowO Moves one word to the let at a
time*
J6=L &trl N Right arrowOMoves one word to the right at a
time*
&e%otiable 6nstruments. '# include K Promissory 'ote5
$ills o E1change 4 &he>ue*
&e%otiability. (ranser o the instrument to any person so
as to constitute him holder*
&e%otiation. Means transer without restriction* (ranseree
ta%ing the instrument or value and in good aith gets better
and absolute title despite any deect in the title o transeror
JendorserL*
'egotiation o $earer che>ue is completed by delivery and
that o order instrument is completed by delivery and
endorsement
1ec.$ L ?efines 3romissory &ote.
P' is an instrument in writing5 containing an unconditional
underta%ing Ior promise)5 signed by ma%er5 to pay a certain
sum o money5 to or to the order o certain person or to the
bearer o the instrument*
3arties. Ma%er and Payee* P' re>uires to be stamped*
!ypes. (here are two types o P'*
6* )emand Promissory 'ote
/* 3sance Promissory 'ote*IPayable at a later date)
P' can be drawn payable in installments also and a
provision also can be made that on deault o one
installment entire amount mentioned in P' becomes
payable*
&urrency 'otes being money5 though ulills conditions o
P' are not promissory notes and governed by #ndian
&urrency "ct JSec/6L
1ec ) L bill of e5chan%e.
" $ill o E1change is an instrument in writing5 containing
an unconditional order5 signed by ma%er5 directing a certain
person to pay5 a certain sum o money only5 to or to the
order o certain person or to the bearer o the instrument*
3arties. )rawer5 )rawee J"cceptorL and Payee
Where no period is mentioned on P' or $,E or payment5
is payable on demand
Where the $,E is lost5 the drawer is under obligation
JSec9:"L to issue a duplicate bill*
"n instrument can be made payable to two or more
personMs ?ointly or payable to one o two or one or some
several payees*
1ec * L 8he9ue.
12
&he>ue is a bill o e1change drawn on a speciied ban% and
not e1pressed to be payable otherwise than on demand*
3arties to che9ue. )rawer Jaccount holderL5 )rawee Jthe
ban% where the account is maintainedL an payee Jperson
named in the che>ueL
4lectronic 8he9ue - !runcated 8he9ue
#n terms o amendments to '# "ct during )ec /00/5
8he9ue "eans . the &he>ue in Electronic orm and
truncated che>ue transacted during clearing process*
Electronic &he>ueO Electronic che>ue is a che>ue which
contains the e1act mirror image o a paper che>ue and is
generated5 written and signed in a secured system ensuring
the minimum saety standards with the use o digital
signature Iwith or without biometrics signature and
asymmetric crypto system)
8he9ue !runcation. #n truncation the che>ue is scanned
and electronic image5 instead o physical che>ue is
transmitted in clearing cycle* (he che>ue is truncated either
by clearing house or by the ban%* #mmediately on
generation o an electronic image or transmission5 urther
physical movement o the che>ue in physical orm is
substituted with such image*
0estrictions on 6nstruments bein% made payable to
bearer
R$# "ct 6=89 K Section 865 states that no person other than
R$# or &entral Govt* can draw5 accept5 ma%e or issue any
bill o e1change or promissory note payable to bearer on
demand* Section 86I/) puts a restriction on ma%ing a
promissory note payable to bearer by a person other than
R$#F&entral Govt*
8he9ues in 3ractice.
7orm of che9ue.
6* '# "ct does not prescribe any speciic orm o a che>ue*
/* Withdrawal slips used by customers are not regarded as
che>ues*
8* Withdrawals by customer by writing an application on a
plain paper would not be unlawul but ban%s do not permit
due to inherent ris%s e1cept under e1ceptional
circumstances*
9* &he>ues drawn in dierent in%s5 scripts and hand
writingsO &he>ues should be paid5 i otherwise in order and
paying ban% is in a position to read and understand the
instructions o drawer*
?ate of che9ue.
&he>ues without dateO 'ot payable* Cowever holder can
complete it*
&he>ue bearing a date being holidayO &he>ue can be paid*
&he>ue bearing date in 'ational Sa%a calendar JCinduL can
be paid
&he>ue bearing impossible dateO e*g* che>ue dated 86st
'ov5 80th -eb can be paid on 80th 'ov or /<F/=th -eb*
Cowever che>ue dated /2th Han canMt be paid on /:th Han*
Stale &he>ueO !he validity period of che9ue is
e5pired due to date mentioned on che9ue i.e. 3
months from the date.
RevalidationO After che9ue becomes stale it can
be revalidated any number of times.
"nte )ated &he>ueO 8he9ue bearin% date prior
to actual date of si%nin% the che9ue or prior to
openin% of account is valid and can be paid till it
becomes stale.
Post dated che>ueO 8he9ue bear a date not fallen
due till presentment. 1uch che9ue becomes
effective only from the date mentioned on
che9ue.
3ayment of such che9ue is not a payment in due
course and additionally poses followin% risks.
M ?rawer can stop payment
M ?eath - insolvency or lunacy of customer may
happen
M Aarnishee 'rder may be served on account
ColderO JSec <L
!he holder means any person who is entitled in
his own name to the possession thereof. ;e%al
ri%ht to possess is enou%h. A person who was
entitled to receive payment of an instrument
and the instrument has been lost will continue
to be treated as holder.
Colder in due course JSec =L
1. A holder in due course is a person =payee or
endorsee or bearer> who must have the
instrument in his possession
2. Ne must obtain possession of it for valuable
and lawful consideration =and not as a %ift>
before its maturity =in case of bill>
3. Ne must obtain it in %ood faith without any
sufficient reason to believe that any defect
e5isted in the title of the person from whom he
obtained it.
$. Nolder in due course %ets a better title than
the transferor even when the transferor had
defective title.
13
3ayment of che9ues and 3ayment in due course
B-s 1ec 31 L statutory obli%ation to honor the
customerKs che9ues sub#ect to conditions.
!here are sufficient funds of the drawer
available with the bank
!hese funds are meant for payment of such
che9ues
!here is proper demand to make the payment
Payment in )ue courseO JSec 60L
3ayment would be considered in due course if.
3ayment is in accordance with the apparent
tenor of the instrument.
3ayment must be made in %ood faith and
without ne%li%ence.
3ayment must be made to the person in
possession of the instrument.
3ayment must be made under circumstances
which do not afford a reasonable %round for
believin% that he is not entitled to receive
payment of amount mentioned therein.
3ayment must be made in money only.
3rotection to 3ayin% Bank ,)G1H order che9ue
i.e. re%ularity in endorsement ,)G2H:bearer
che9ue ,) A ?? ,/ L 8he9ue with material
alteration not visible with naked eye 12, L
payment of crossed che9ues.
BA&O6&A !40"1
0B6 L (he Reserve $an% o #ndia is the ape1 ban% o the
country5 which was constituted under the R$# "ct5 6=89 to
regulate the other ban%s5 issue o ban% notes and
maintenance o reserves with a view to securing the
monetary stability in #ndia*
?emand ?eposit L " )emand deposit is the one which can
be withdrawn at any time5 without any notice or penalty7
e*g* money deposited in a chec%ing account or savings
account in a ban%*
!ime ?eposit L (ime deposit is a money deposit at a
ban%ing institution that cannot be withdrawn or a certain
PtermP or period o time* When the term is over it can be
withdrawn or it can be held or another term*
7i5ed ?eposits L -)s are the deposits that are repayable on
i1ed maturity date along with the principal and agreed
interest rate or the period* $an%s pay higher interest rates
on -)s than the savings ban% account*
0ecurrin% ?eposits K (hese are also called cumulative
deposits and in recurring deposit accounts5 a certain
amounts o savings are re>uired to be compulsorily
deposited at speciic intervals or a speciied period*
1avin%s Account K Savings account is an account
generally maintained by retail customers that deposit
money Ii*e* their savings) and can withdraw them whenever
they need* -unds in these accounts are sub?ected to low
rates o interest*
8urrent Accounts K (hese accounts are maintained by the
corporate clients that may be operated any number o times
in a day* (here is a maintenance charge or the current
accounts or which the holders en?oy acilities o easy
handling5 overdrat acility etc*
78&0 Accounts L -oreign &urrency 'on.Resident
accounts are the ones that are maintained by the 'R#s in
oreign currencies li%e 3S)5 )M5 and G$P etc* (he
account is a term deposit with interest rates lin%ed to the
international rates o interest o the respective currencies*
&04 Accounts K 'on.Resident E1ternal accounts are the
ones in which 'R#s remit money in any permitted oreign
currency and the remittance is converted to #ndian rupees
or credit to 'RE accounts* (he accounts can be in the
orm o current5 saving5 -)s5 recurring deposits* (he
interest rates and other terms o these accounts are as per
the R$# directives*
8he9ue Book . " small5 bound boo%let o che>ues* "
che>ue is a piece o paper produced by your ban% with your
account number5 sort.code and che>ue number printed on
it* (he account number distinguishes your account rom
other accounts7 the sort.code is your ban%@s special code
which distinguishes it rom any other ban%*
8he9ue 8learin% . (his is the process o getting the
money rom the che>ue.writer@s account into the che>ue
receiver@s account*
8learin% Bank . (his is a ban% that can clear unds
between ban%s* -or general purposes5 this is any institution
which we %now o as a ban% or as a provider o ban%ing
services*
14
Bounced 8he9ue . when the ban% has not enough unds in
the relevant account or the account
holder re>uests that the che>ue is bounced Iunder
e1ceptional circumstances) then the ban% will return the
che>ue to the account holder*
8redit 0atin% . (his is the rating which an individual Ior
company) gets rom the credit industry* (his is obtained by
the individual@s credit history5 the details o which are
available rom specialist organisations li%e &R#S#+ in
#ndia*
8redit:Worthiness . (his is the ?udgement o an
organization which is assessing whether or not to ta%e a
particular individual on as a customer* "n individual might
be considered credit.worthy by one organisation but not by
another* Much depends on whether an organization is
involved with high ris% customers or not*
6nterest . (he amount paid or charged on money over time*
# you borrow money interest will be charged on the loan* #
you invest money5 interest will be paid Iwhere appropriate
to the investment)*
'verdraft . (his is when a person has a minus igure in
their account* #t can be authorized Iagreed to in advance or
retrospect) or unauthorized Iwhere the ban% has not agreed
to the overdrat either because the account holder
represents too great a ris% to lend to in this way or because
the account holder has not as%ed or an overdrat acility)*
3ayee . (he person who receives a payment* (his oten
applies to che>ues* # you receive a che>ue you are the
payee and the person or company who wrote the che>ue is
the payer*
3ayer . (he person who ma%es a payment* (his oten
applies to che>ues* # you write a che>ue you are the payer
and the recipient o the che>ue is the payee*
1ecurity for ;oans . Where large loans are re>uired the
lending institution oten needs to have a guarantee that the
loan will be paid bac%* (his ta%es the orm o a large item
o capital outlay Itypically a house) which is owned or
partly owned and the amount owned is at least e>uivalent to
the loan re>uired*
6nternet Bankin% : ,nline ban%ing Ior #nternet ban%ing)
allows customers to conduct inancial transactions on a
secure website operated by the ban%*
8redit 8ard : " credit card is one o the systems o
payments named ater the small plastic card issued to users
o the system* #t is a card entitling its holder to buy goods
and services based on the holder@s promise to pay or these
goods and services*
?ebit 8ard K )ebit card allows or direct withdrawal o
unds rom customers ban% accounts* (he spending limit is
determined by the available balance in the account*
;oan . " loan is a type o debt* #n a loan5 the borrower
initially receives or borrows an amount o money5 called
the principal5 rom the lender5 and is obligated to pay bac%
or repay an e>ual amount o money to the lender at a later
time* (here are dierent %inds o loan such as the house
loan5 auto loan etc*
Bank 0ate : (his is the rate at which central ban% IR$#)
lends money to other ban%s or inancial institutions* # the
ban% rate goes up5 long.term interest rates also tend to
move up5 and vice.versa*
800 : &ash reserve Ratio I&RR) is the amount o unds
that the ban%s have to %eep with R$#* # R$# decides to
increase the percent o this5 the available amount with the
ban%s comes down* R$# is using this method Iincrease o
&RR rate)5 to drain out the e1cessive money rom the
ban%s*
1;0 : S+R stands or Statutory +i>uidity Ratio* (his term
is used by ban%ers and indicates the minimum percentage
o deposits that the ban% has to maintain in orm o gold5
cash or other approved securities* (hus5 we can say that it
is ratio o cash and some other approved to liabilities
Ideposits)* #t regulates the credit growth in #ndia*
A!" . "n automated teller machine I"(M) is a
computerised telecommunications device that provides the
clients with access to inancial transactions in a public
space without the need or a cashier5 human cler% or ban%
teller* ,n most modern "(Ms5 the customer is identiied
by inserting a plastic "(M card with a magnetic stripe or a
plastic smart card with a chip5 that contains a uni>ue card
number and some security inormation such as an
15
e1piration date or &!!* "uthentication is provided by the
customer entering a personal identiication number IP#')
043' 0A!4. . 3nder repo transaction the borrower
places with the lender certain acceptable securities against
unds received and agree to reverse this transaction on a
predetermined uture date at agreed interest cost* Repo rate
is also called Irepurchase agreement or repurchase option)*
04P4014 043' 0A!4. is the interest rate earned by
the ban% or lending money tothe R$# in e1change o govt*
securities or Plender buys securities with agreement to sell
them bac% at a predetermined rateP*
8A1N 04140P4 0A!6'. speciies the percentage o
their total deposits the commercial ban% must %eep with
central ban% or R$#* Cigher the &RR lower will be the
capacity o ban% to create credit*
1;0. %nown as Statutorily +i>uidity Ratio* Each ban% is
re>uired statutorily maintain a prescribed minimum
proportion o its demand and time liabilities in the orm o
designated li>uid asset*
,R
PEvery ban% has to maintain a percentage o its demand
and time liabilities by way o cash5 gold etcP*
BA&O 0A!4. is the rate o interest which is charged by
R$# on its advances to commercial ban%s* When reserve
ban% desires to restrict e1pansion o credit it raises the ban%
rate there by ma%ing the credit costlier to commercial ban%*
'P40?0A7!. #t is the loan acility on customer current
account at a ban% permitting him to overdraw up to a
certain agreed limit or a agreed period 5interest is payable
only on the amount o loan ta%en up*
306"4 ;4&?6&A 0A!4. #t is the rate at which
commercial ban%s give loan to its prime customers*
BA&O6&A !40"1
Account A%reement. (he contract governing your open.
end credit account5 it provides inormation on changes that
may occur to the account*
Account Nistory. (he payment history o an account over
a speciic period o time5 including the number o times the
account was past due or over limit*
Account Nolder. "ny and all persons designated and
authorized to transact business on behal o an account*
Each account holder@s signature needs to be on ile with the
ban%* (he signature authorizes that person to conduct
business on behal o the account*
Ac9uirin% Bank. #n a merger5 the ban% that absorbs the
ban% ac>uired*
"ccrued interestO #nterest due rom issue date or rom the
last coupon payment date to the settlement date* "ccrued
interest on bonds must be added to their purchase price*
Ad#ustable:0ate "ort%a%es =A0"1>. "lso %nown as
variable.rate mortgages* (he initial interest rate is usually
below that o conventional i1ed.rate loans* (he interest
rate may change over the lie o the loan as mar%et
conditions change* (here is typically a ma1imum Ior
ceiling) and a minimum Ior loor) deined in the loan
agreement* # interest rates rise5 so does the loan payment*
# interest rates all5 the loan payment may as well*
Arbitra%e. $uying a inancial instrument in one mar%et in
order to sell the same instrument at a higher price in
another mar%et*
Adverse Action. 3nder the E>ual &redit ,pportunity "ct5
a creditor@s reusal to grant credit on the terms re>uested5
termination o an e1isting account5 or an unavorable
change in an e1isting account*
Adverse Action &otice. (he notice re>uired by the E>ual
&redit ,pportunity "ct advising a credit applicant or
e1isting debtor o the denial o their re>uest or credit or
advising o a change in terms considered unavorable to the
account holder*
A40. "nnual earnings rate on an investment*
Affidavit. " sworn statement in writing beore a proper
oicial5 such as a notary public*
Alteration. "ny change involving an erasure or rewriting
in the date5 amount5 or payee o a chec% or other negotiable
instrument*
Amortization. (he process o reducing debt through
regular installment payments o principal and interest that
will result in the payo o a loan at its maturity*
Anytime Bankin%. With introduction o "(Ms5 (ele.
$an%ing and internet ban%ing5 customers can conduct their
business anytime o the day and night* (he @$an%ing Cours@
is not a constraint or transacting ban%ing business*
Anywhere Bankin% . Reers to ban%ing not only by
"(Ms5 (ele.$an%ing and internet ban%ing5 but also to core
ban%ing solutions brought in by ban%s where customer can
deposit his money5 che>ues and also withdraw money rom
any branch connected with the system* "ll ma?or ban%s in
#ndia have brought in core ban%ing in their operations to
ma%e ban%ing truly anywhere ban%ing*
Annual 3ercenta%e 0ate =A30>. (he cost o credit on a
yearly basis5 e1pressed as a percentage*
16
Annual 3ercenta%e Qield =A3Q>. " percentage rate
relecting the total amount o interest paid on a deposit
account based on the interest rate and the re>uency o
compounding or a 82:.day year*
Annuity . " lie insurance product which pays income
over the course o a set period* )eerred annuities allow
assets to grow beore the income is received and immediate
annuities Iusually ta%en rom a year ater purchase) allow
payments to start rom about a year ater purchase*
A30. (he annual percentage rate o interest5 usually on a
loan or mortgage5 usually displayed in brac%ets and
representing the true cost o the loan or mortgage as it
shows any additional payments beyond the interest rate*
Application. 3nder the E>ual &redit ,pportunity "ct
IE&,")5 an oral or written re>uest or an e1tension o
credit that is made in accordance with the procedures
established by a creditor or the type o credit re>uested*
Appraisal. (he act o evaluating and setting the value o a
speciic piece o personal or real property*
Ask 3rice. (he lowest price at which a dealer is willing to
sell a given security*
Asset:Backed 1ecurities =AB1>. " type o security that is
bac%ed by a pool o ban% loans5 leases5 and other assets*
Most "$S are bac%ed by auto loans and credit cards K
these issues are very similar to mortgage.bac%ed securities*
At:the:money. (he e1ercise price o a derivative that is
closest to the mar%et price o the underlying instrument*
A!". "(Ms are "utomatic (eller Machines5 which do
the ?ob o a teller in a ban% through &omputer 'etwor%*
"(Ms are located on the branch premises or o branch
premises* "(Ms are useul to dispense cash5 receive cash5
accept che>ues5 give balances in the accounts and also give
mini.statements to the customers*
Authorization. (he issuance o approval5 by a credit card
issuer5 merchant5 or other ailiate5 to complete a credit card
transaction*
Automated 8learin% Nouse =A8N>. " computerized
acility used by member depository institutions to
electronically combine5 sort5 and distribute inter.ban%
credits and debits* "&Cs process electronic transers o
government securities and provided customer services5
such as direct deposit o customers@ salaries and
government beneit payments Ii*e*5 social security5 welare5
and veterans@ entitlements)5 and preauthorized transers*
Automated !eller "achine =A!">. " machine5 activated
by a magnetically encoded card or other medium that can
process a variety o ban%ing transactions* (hese include
accepting deposits and loan payments5 providing
withdrawals5 and transerring unds between accounts*
Automatic Bill 3ayment. " chec%less system or paying
recurring bills with one authorization statement to a
inancial institution* -or e1ample5 the customer would only
have to provide one authorization ormFletterFdocument to
pay the cable bill each month* (he necessary debits and
credits are made through an "utomated &learing Couse
I"&C)*
Availability ?ate. $an%@s policy as to when unds
deposited into an account will be available or withdrawal*
Availability 3olicy. $an%@s policy as to when unds
deposited into an account will be available or withdrawal*
Available Balance. (he balance o an account less any
hold5 uncollected unds5 and restrictions against the
account*
Available 8redit. (he dierence between the credit limit
assigned to a cardholder account and the present balance o
the account*
Bankin%. "ccepting or the purpose o lending or
investment o deposits o money rom Public5 Repayable
on demand or otherwise and withdraw able by che>ues5
drats5 order5 etc*
Bank 'mbudsman. $an% ,mbudsman is the authority to
loo% into complaints against $an%s in the main areas o
collection o che>ue F bills5 issue o demand drats5 non.
adherence to prescribed hours o wor%ing5 ailure to honour
guarantee F letter o credit commitments5 operations in
deposit accounts and also in the areas o loans and
advances where ban%s lout directions F instructions o R$#*
(his Scheme was announced in 6==: and is unctioning
with new guidelines rom /00;* (his scheme covers all
scheduled ban%s5 the RR$s and co.operative ban%s*
Bancassurance. $ancassurance reers to the distribution
o insurance products and the insurance policies o
insurance companies which may be lie policies or non.lie
policies li%e home insurance . car insurance5 medi.policies
and others5 by ban%s as corporate agents through their
branches located in dierent parts o the country by
charging a ee*
Banker<s ;ien. $an%ers lien is a special right o lien
e1ercised by the ban%ers5 who can retain goods bailed to
them as a security or general balance o account* $an%ers
can have this right in the absence o a contract to the
contrary*
Basel:66. (he &ommittee on $an%ing Regulations and
Supervisory Practices5 popularity %nown as $asel
&ommittee5 submitted its revised version o norms in Hune5
/009* 3nder the revised accord the capital re>uirement is to
be calculated or credit5 mar%et and operational ris%s* (he
minimum re>uirement continues to be <A o capital und
I(ier # 4 ## &apital) (ier ## shall continue to be not more
than 600A o (ier # &apital*
Brick @ "ortar Bankin%. $ric% and Mortar $an%ing
reers to traditional system o ban%ing done only in a i1ed
branch premises made o bric% and mortar* 'ow there are
ban%ing channels li%e "(M5 #nternet $an%ing5 tele ban%ing
etc*
17
Business of Bankin% . "ccepting deposits5 borrowing
money5 lending money5 investing5 dealing in bills5 dealing
in -oreign E1change5 Ciring +oc%ers5 ,pening Sae
&ustody "ccounts5 #ssuing +etters o &redit5 (ravelersM
&he>ues5 doing Mutual -und business5 #nsurance $usiness5
acting as (rustee or doing any other business which &entral
Government may notiy in the oicial Gazette*
Bouncin% of a che9ue. Where an account does not have
suicient balance to honour the che>ue issued by the
customer5 the che>ue is returned by the ban% with the
reason Punds insuicientP or PE1ceeds arrangementQ* (his
is %nown as @$ouncing o a che>ueM*
Basis 3oint. ,ne hundredth o 6A* " measure normally
used in the statement o interest rate e*g*5 a change rom
:*;:A to :*<6A is a change o 2 basis points* $ear
Mar%etsO 3navorable mar%ets associated with alling
prices and investor pessimism*
Bid:ask 1pread. (he dierence between a dealersMs bid
and as% price*
Bid 3rice. (he highest price oered by a dealer to
purchase a given security*
Blue 8hips. $lue chips are unsurpassed in >uality and
have a long and stable record o earnings and dividends*
(hey are issued by large and well.established irms that
have impeccable inancial credentials*
Bond. Publicly traded long.term debt securities5 issued by
corporations and governments5 whereby the issuer agrees to
pay a i1ed amount o interest over a speciied period o
time and to repay a i1ed amount o principal at maturity*
Book Palue. (he amount o stoc%holdersM e>uity in a irm
e>uals the amount o the irmMs assets minus the irmMs
liabilities and preerred stoc%*
Broker. #ndividuals licensed by stoc% e1changes to enable
investors to buy and sell securities*
Brokera%e 7ee. (he commission charged by a bro%er*
Bull "arkets. -avorable mar%ets associated with rising
prices and investor optimism*
8all 'ption. (he right to buy the underlying securities at a
speciied e1ercise price on or beore a speciied e1piration
date*
8allable Bonds. $onds that give the issuer the right to
redeem the bonds beore their stated maturity*
8apital Aain. (he amount by which the proceeds rom the
sale o a capital asset e1ceed its original purchase price*
8apital "arketsO (he mar%et in which long.term
securities such as stoc%s and bonds are bought and sold*
8ertificate of ?eposits =8?s>. Savings instrument in
which unds must remain on deposit or a speciied period
and premature withdrawals incur interest penalties*
8ertificate of ?eposit.. &ertiicate o )eposits are
negotiable receipts in bearer orm which can be reely
traded among investors* (his is also a money mar%et
instrument5issued or a period ranging rom ; days to one
year *(he minimum deposit amount is Rs* 6 la%h and they
are transerable by endorsement and delivery*
8he9ue. &he>ue is a bill o e1change drawn on a speciied
ban%er ordering the ban%er to pay a certain sum o money
to the drawer o che>ue or another person* Money is
generally withdrawn by clients by che>ues* &he>ue is
always payable on demand*
8he9ue !runcation. &he>ue truncation truncates or stops
the low o che>ues through the ban%ing system* Generally
truncation ta%es place at the collecting branch5 which sends
the electronic image o the che>ues to the paying branch
through the clearing house and stores the paper che>ues
with it*
8losed:end ="utual> 7und. " und with a i1ed number
o shares issued5 and all trading is done between investors
in the open mar%et* (he share prices are determined by
mar%et prices instead o their net asset value*
8ollateral. " speciic asset pledged against possible
deault on a bond* Mortgage bonds are bac%ed by claims on
property* &ollateral trusts bonds are bac%ed by claims on
other securities* E>uipment obligation bonds are bac%ed by
claims on e>uipment*
8ommercial 3aper. Short.term and unsecured promissory
notes issued by corporations with very high credit
standings*
8ommon 1tock. E>uity investment representing
ownership in a corporation7 each share represents a
ractional ownership interest in the irm*
8ompound 6nterest. #nterest paid not only on the initial
deposit but also on any interest accumulated rom one
period to the ne1t*
8ontract &ote. " note which must accompany every
security transaction which contains inormation such as the
dealerMs name Iwhether he is acting as principal or agent)
and the date o contract*
8ontrollin% 1hareholder. "ny person who is5 or group o
persons who together are5 entitled to e1ercise or control the
e1ercise o a certain amount o shares in a company at a
level Iwhich diers by ?urisdiction) that triggers a
mandatory general oer5 or more o the voting power at
general meetings o the issuer5 or who is or are in a position
to control the composition o a ma?ority o the board o
directors o the issuer*
8onvertible Bond. " bond with an option5 allowing the
bondholder to e1change the bond or a speciied number o
shares o common stoc% in the irm* " conversion price is
the speciied value o the shares or which the bond may be
e1changed* (he conversion premium is the e1cess o the
bondMs value over the conversion price*
8orporate Bond. +ong.term debt issued by private
corporations*
18
8oupon. (he eature on a bond that deines the amount o
annual interest income*
8oupon 7re9uency. (he number o coupon payments per
year*
8oupon 0ate. (he annual rate o interest on the bondMs
ace value that a bondMs issuer promises to pay the
bondholder* #t is the bondMs interest payment per dollar o
par value*
8overed Warrants. )erivative call warrants on shares
which have been separately deposited by the issuer so that
they are available or delivery upon e1ercise*
8redit 0atin%. "n assessment o the li%elihood o an
individual or business being able to meet its inancial
obligations* &redit ratings are provided by credit agencies
or rating agencies to veriy the inancial strength o the
issuer or investors*
8ollectin% Banker. "lso called receiving ban%er5 who
collects on instruments li%e a che>ue5 drat or bill o
e1change5 lodged with himsel or the credit o his
customer@s account*
8onsumer 3rotection Act. #t is implemented rom 6=<; to
enorce consumer rights through a simple legal procedure*
$an%s also are covered under the "ct* " consumer can ile
complaint or deiciency o service with &onsumer )istrict
-orum or amounts upto Rs*/0 +acs in )istrict &ourt5 and
or amounts above Rs*/0 +acs to Rs*6 &rore in State
&ommission and or amounts above Rs*6 &rore in 'ational
&ommission*
8o:operative Bank . "n association o persons who
collectively own and operate a ban% or the beneit o
consumers F customers5 li%e Saraswat &o.operative $an% or
"bhyudaya &o.operative $an% and other such ban%s*
8o:operative 1ociety . When an association o persons
collectively own and operate a unit or the beneit o those
using its services li%e "pna $azar &o.operative Society or
Saha%ar $handar or a &o.operative Cousing Society*
8ore Bankin% 1olutions =8B1>. &ore $an%ing Solutions
is a buzz word in #ndian ban%ing at present5 where branches
o the ban% are connected to a central host and the
customers o connected branches can do ban%ing at any
breach with core ban%ing acility*
8reditworthiness. #t is the capacity o a borrower to repay
the loan F advance in time along with interest as per agreed
terms*
8rossin% of 8he9ues. &rossing reers to drawing two
parallel lines across the ace o the che>ue* " crossed
che>ue cannot be paid in cash across the counter5 and is to
be paid through a ban% either by transer5 collection or
clearing* " general crossing means that che>ue can be paid
through any ban% and a special crossing5 where the name o
a ban% is indicated on the che>ue5 can be paid only through
the named ban%*
8ustomer. " person who maintains any type o account
with a ban% is a ban% customer* &onsumer Protection "ct
has a wider deinition or consumer as the one who
purchases any service or a ee li%e purchasing a demand
drat or a pay order* (he term customer is deined
dierently by +aws5 sotwares and countries*
8urrent Account. &urrent account with a ban% can be
opened generally or business purpose* (here are no
restrictions on withdrawals in this type o account* 'o
interest is paid in this type o account*
8urrency Board. " monetary system in which the
monetary base is ully bac%ed by oreign reserves* "ny
changes in the size o the monetary base have to be ully
matched by corresponding changes in the oreign reserves*
8urrent Qield. " return measure that indicates the amount
o current income a bond provides relative to its mar%et
price* #t is shown asO &oupon Rate divided by Price
multiplied by 600A*
8ustody of 1ecurities. Registration o securities in the
name o the person to whom a ban% is accountable5 or in
the name o the ban%Ms nominee7 plus deposition o
securities in a designated account with the ban%Ms ban%ers
or with any other institution providing custodial services*
?ebit 8ard. " plastic card issued by ban%s to customers to
withdraw money electronically rom their accounts* When
you purchase things on the basis o )ebit &ard the amount
due is debited immediately to the account* Many ban%s
issue )ebit.&um."(M &ards*
?ebtor. " person who ta%es some money on loan rom
another person*
?emand ?eposits. )eposits which are withdrawn on
demand by customers* E*g* savings ban% and current
account deposits*
?emat Account. )emat "ccount concept has
revolutionized the capital mar%et o #ndia* When a
depository company ta%es paper shares rom an investor
and converts them in electronic orm through the concerned
company5 it is called )ematerialization o Shares* (hese
converted Share &ertiicates in Electronic orm are %ept in
a )emat "ccount by the )epository &ompany5 li%e a ban%
%eeps money in a deposit account* #nvestor can withdraw
the shares or purchase more shares through this demat
"ccount*
?erivative 8all =3ut> Warrants. Warrants issued by a
third party which grant the holder the right to buy Isell) the
shares o a listed company at a speciied price*
?erivative 6nstrument. -inancial instrument whose value
depends on the value o another asset*
?iscount Bond. " bond selling below par5 as interest in.
lieu to the bondholders*
?ishonour of 8he9ue. 'on.payment o a che>ue by the
paying ban%er with a return memo giving reasons or the
19
non.payment* )eault Ris%O (he possibility that a bond
issuer will deault ie5 ail to repay principal and interest in a
timely manner*
?iversification. (he inclusion o a number o dierent
investment vehicles in a portolio in order to increase
returns or be e1posed to less ris%*
?uration. " measure o bond price volatility5 it captures
both price and reinvestment ris%s to indicate how a bond
will react to dierent interest rate environments*
4arnin%s. (he total proits o a company ater ta1ation and
interest*
4arnin%s per 1hare =431>. (he amount o annual
earnings available to common stoc%holders as stated on a
per share basis*
4arnin%s Qield. (he ratio o earnings to price IEFP)* (he
reciprocal is price earnings ratio IPFE)*
4:Bankin% . E.$an%ing or electronic ban%ing is a orm o
ban%ing where unds are transerred through e1change o
electronic signals between ban%s and inancial institution
and customers "(Ms5 &redit &ards5 )ebit &ards5
#nternational &ards5 #nternet $an%ing and new und transer
devices li%e SW#-(5 R(GS belong to this category*
47! : =4lectronic 7und !ransfer>. E-( is a device to
acilitate automatic transmission and processing o
messages as well as unds rom one ban% branch to another
ban% branch and even rom one branch o a ban% to a
branch o another ban%* E-( allows transer o unds
electronically with debit and credit to relative accounts*
4ither or 1urvivor. Reers to operation o the account
opened in two names with a ban%* #t means that any one o
the account holders have powers to withdraw money rom
the account5 issue che>ues5 give stop payment instructions
etc* #n the event o death o one o the account holder5 the
surviving account holder gets all the powers o operation*
4lectronic 8ommerce =4:8ommerce>. E.&ommerce is
the paperless commerce where the e1change o business
ta%es place by Electronic means*
4ndorsement. When a 'egotiable #nstrument contains5 on
the bac% o the instrument an endorsement5 signed by the
holder or payee o an order instrument5 transerring the title
to the other person5 it is called endorsement*
Bouncin% of a che9ue. Where the name o the endorsee or
transeree is not mentioned on the instrument*
4ndorsement in 7ull. Where the name o the endorsee or
transeree appears on the instrument while ma%ing
endorsement*
49uity. ,wnership o the company in the orm o shares o
common stoc%*
49uity 8all Warrants. Warrants issued by a company
which give the holder the right to ac>uire new shares in that
company at a speciied price and or a speciied period o
time*
45:dividend =E?>. " security which no longer carries the
right to the most recently declared dividend or the period o
time between the announcement o the dividend and the
payment Iusually two days beore the record date)* -or
transactions during the e1.dividend period5 the seller will
receive the dividend5 not the buyer* E1.dividend status is
usually indicated in newspapers with an I1) ne1t to the
stoc%Ms or unit trustMs name*
45ecution of ?ocuments. E1ecution o documents is done
by putting signature o the person5 or ai1ing his thumb
impression or putting signature with stamp or ai1ing
common seal o the company on the documents with or
without signatures o directors as per articles o association
o the company*
7ace Palue- &ominal Palue. (he value o a inancial
instrument as stated on the instrument* #nterest is calculated
on aceFnominal value*
7i5ed:income 1ecurities. #nvestment vehicles that oer a
i1ed periodic return*
7i5ed 0ate Bonds. $onds bearing i1ed interest payments
until maturity date*
7loatin% 0ate Bonds. $onds bearing interest payments
that are tied to current interest rates*
7actorin%. $usiness o buying trade debts at a discount
and ma%ing a proit when debt is realized and also ta%ing
over collection o trade debts at agreed prices*
7orei%n Banks. $an%s incorporated outside #ndia but
operating in #ndia and regulated by the Reserve $an% o
#ndia IR$#)5* e**g*5 $arclays $an%5 CS$&5 &itiban%5
Standard &hartered $an%5 etc*
7orfeitin%. #n #nternational (rade when an e1porter inds it
diicult to realize money rom the importer5 he sells the
right to receive money at a discount to a oraiter5 who
underta%es inherent political and commercial ris%s to
inance the e1porter5 o course with assumption o a proit
in the venture*
7or%ery. when a material alteration is made on a document
or a 'egotiable #nstrument li%e a che>ue5 to change the
mandate o the drawer5 with intention to deraud*
7undamental Analysis. Research to predict stoc% value
that ocuses on such determinants as earnings and
dividends prospects5 e1pectations or uture interest rates
and ris% evaluation o the irm*
7uture Palue. (he amount to which a current deposit will
grow over a period o time when it is placed in an account
paying compound interest*
7uture Palue of an Annuity. (he amount to which a
stream o e>ual cash lows that occur in e>ual intervals will
grow over a period o time when it is placed in an account
paying compound interest*
20
7utures 8ontract. " commitment to deliver a certain
amount o some speciied item at some speciied date in the
uture*
Aarnishee 'rder. When a &ourt directs a ban% to attach
the unds to the credit o customer@s account under
provisions o Section 20 o the &ode o &ivil Procedure5
6=0<*
Aeneral ;ien. " right o the creditors to retain possession
o all goods given in security to him by the debtor or any
outstanding debt*
Auarantee. " contract between guarantor and beneiciary
to ensure perormance o a promise or discharge the
liability o a third person* # promise is bro%en or not
perormed5 the guarantor pays contracted amount to the
beneiciary*
Ned%e. " combination o two or more securities into a
single investment position or the purpose o reducing or
eliminating ris%*
Nolder. Colder means any person entitled in his own name
to the possession o the che>ue5 bill o e1change or
promissory note and who is entitled to receive or recover
the amount due on it rom the parties* -or e1ample5 i # give
a che>ue to my riend to withdraw money rom my ban%5he
becomes holder o that che>ue* Even i he loses the che>ue5
he continues to be holder* -inder cannot become the holder*
Nolder in due course . " person who receives a
'egotiable #nstrument or value5 beore it was due and in
good aith5 without notice o any deect in it5 he is called
holder in due course as per 'egotiable #nstrument "ct* #n
the earlier e1ample i my riend lends some money to me
on the basis o the che>ue5 which # have given to him or
encashment5 he becomes holder.in.due course*
Nypothecation. &harge against property or an amount o
debt where neither ownership nor possession is passed to
the creditor* #n pledge5 possession o property is passed on
to the lender but in hypothecation5 the property remains
with the borrower in trust or the lender*
6dentification. When a person provides a document to a
ban% or is being identiied by a person5 who is %nown to the
ban%5 it is called identiication* $an%s as% or identiication
beore paying an order che>ue or a demand drat across the
counter*
6ndemnifier. When a person indemniies or guarantees to
ma%e good any loss caused to the lender rom his actions or
others@ actions*
6ndemnity. #ndemnity is a bond where the indemniier
underta%es to reimburse the beneiciary rom any loss
arising due to his actions or third party actions*
6ncome. (he amount o money an individual receives in a
particular time period*
6nde5 7und. " mutual und that holds shares in
proportion to their representation in a mar%et inde15 such as
the S4P :00*
6nitial 3ublic 'fferin% =63'>. "n event where a company
sells its shares to the public or the irst time* (he company
can be reerred to as an #P, or a period o time ater the
event*
6nside 6nformation. 'on.public %nowledge about a
company possessed by its oicers5 ma?or owners5 or other
individuals with privileged access to inormation*
6nsider !radin%. (he illegal use o non.public inormation
about a company to ma%e proitable securities transactions
6nsolvent. #nsolvent is a person who is unable to pay his
debts as they mature5 as his liabilities are more than the
assets * &ivil &ourts declare such persons insolvent* $an%s
do not open accounts o insolvent persons as they cannot
enter into contract as per law*
6nterest Warrant. When che>ue is given by a company or
an organization in payment o interest on deposit 5 it is
called interest warrant* #nterest warrant has all the
characteristics o a che>ue*
6nternational Bankin%. involves more than two nations or
countries* # an #ndian $an% has branches in dierent
countries li%e State $an% o #ndia5 it is said to do
#nternational $an%ing*
6ntroduction. $an%s are careul in opening any account or
a customer as the prospective customer has to be
introduced by an e1isting account holder or a sta member
or by any other person %nown to the ban% or opening o
account* # ban% does not ta%e introduction5 it will amount
to negligence and will not get protection under law*
6ntrinsic Palue. (he dierence o the e1ercise price over
the mar%et price o the underlying asset*
6nvestment. " vehicle or unds e1pected to increase its
value andFor generate positive returns*
6nvestment Adviser. " person who carries on a business
which provides investment advice with respect to securities
and is registered with the relevant regulator as an
investment adviser*
63' price. (he price o share set beore being traded on
the stoc% e1change* ,nce the company has gone #nitial
Public ,ering5 the stoc% price is determined by supply
and demand*
RN7 Account . Hoint Cindu -amily "ccount is account o a
irm whose business is carried out by Darta o the Hoint
amily5 acting or all the amily members** (he amily
members have common ancestor and generally maintain a
common residence and are sub?ect to common social5
economic and religious regulations*
Roint Account. When two or more individuals ?ointly open
an account with a ban%*
21
Runk Bond. Cigh.ris% securities that have received low
ratings Ii*e* Standard 4 PoorMs $$$ rating or below7 or
MoodyMs $$$ rating or below) and as such5 produce high
yields5 so long as they do not go into deault*
Oarta. Manager o a Cindu 3ndivided -amily IC3-) who
handles the amily business* Ce is usually the eldest male
member o the undivided amily*
Oiosk Bankin%. )oing ban%ing rom a cubicle rom which
ood5 newspapers5 tic%ets etc* are also sold*
OQ8 &orms. Dnow your customer norms are imposed by
R*$*#* on ban%s and other inancial institutions to ensure
that they %now their customers and to ensure that customers
deal only in legitimate ban%ing operations and not in
money laundering or rauds*
;aw of ;imitation. +imitation "ct o 6=28 i1es the
limitation period o debts and obligations including ban%s
loans and advances* # the period i1ed or particular debt
or loan e1pires5 one cannot ile a suit or is recovery5 but
the act o the debt or loan is not denied* #t is said that law
o limitation bars the remedy but does not e1tinguish the
right*
;ease 7inancin%. -inancing or the business o renting
houses or lands or a speciied period o time and also
hiring out o an asset or the duration o its economic lie*
+easing o a car or heavy machinery or a speciic period at
speciic price is an e1ample*
;etter of 8redit. " document issued by importers ban% to
its branch or agent abroad authorizing the payment o a
speciied sum to a person named in +etter o &redit
Iusually e1porter rom abroad)* +etters o &redit are
covered by rules ramed under 3niorm &ustoms and
Practices o )ocumentary &redits ramed by #nternational
&hamber o &ommerce in Paris*
;imited 8ompanies Accounts. "ccounts o companies
incorporated under the &ompanies "ct5 6=:2 * " company
may be private or public* +iability o the shareholders o a
company is generally limited to the ace value o shares
held by them*
;evera%e 0atio. -inancial ratios that measure the amount
o debt being used to support operations and the ability o
the irm to service its debt*
;ibor. (he +ondon #nterban% ,ered Rate Ior +#$,R) is
a daily reerence rate based on the interest rates at which
ban%s oer to lend unsecured unds to other ban%s in the
+ondon wholesale money mar%et Ior interban% mar%et)*
(he +#$,R rate is published daily by the $ritish $an%erMs
"ssociation and will be slightly higher than the +ondon
#nterban% $id Rate I+#$#))5 the rate at which ban%s are
prepared to accept deposits*
;imit 'rder. "n order to buy Isell) securities which
speciies the highest Ilowest) price at which the order is to
be transacted*
;imited 8ompany. (he passive investors in a partnership5
who supply most o the capital and have liability limited to
the amount o their capital contributions*
;i9uidity. (he ability to convert an investment into cash
>uic%ly and with little or no loss in value*
;istin%. Ruotation o the #nitial Public ,ering companyMs
shares on the stoc% e1change or public trading*
;istin% ?ate. (he date on which #nitial Public ,ering
stoc%s are irst traded on the stoc% e1change by the public
"ar%in 8all. " notice to a client that it must provide
money to satisy a minimum margin re>uirement set by an
E1change or by a ban% F bro%ing irm*
"arket 8apitalization. (he product o the number o the
companyMs outstanding ordinary shares and the mar%et
price o each share*
"arket "aker. " dealer who maintains an inventory in
one or more stoc%s and underta%es to ma%e continuous
two.sided >uotes*
"arket 'rder. "n order to buy or an order to sell
securities which is to be e1ecuted at the prevailing mar%et
price*
"oney "arket. Mar%et in which short.term securities are
bought and sold*
"ar%inal 1tandin% 7acility 0ate. MS- scheme has
become eective rom 0=th May5 /066 launched by the
R$#* 3nder this scheme5 $an%s will be able to borrow upto
6A o their respective 'et )emand and (ime +iabilities*
(he rate o interest on the amount accessed rom this
acility will be 600 basis points Ii*e* 6A) above the repo
rate* (his scheme is li%ely to reduce volatility in the
overnight rates and improve monetary transmission*
"andate. Written authority issued by a customer to
another person to act on his behal5 to sign che>ues or to
operate a ban% account*
"aterial Alteration. "lteration in an instrument so as to
alter the character o an instrument or e1ample when date5
amount5 name o the payee are altered or ma%ing a che>ue
payable to bearer rom an order one or opening the crossing
on a che>ue*
"erchant Bankin% . When a ban% provides to a customer
various types o inancial services li%e accepting bills
arising out o trade5 arranging and providing underwriting5
new issues5 providing advice5 inormation or assistance on
starting new business5 ac>uisitions5 mergers and oreign
e1change*
"icro 7inance. Micro -inance aims at alleviation o
poverty and empowerment o wea%er sections in #ndia* #n
micro inance5 very small amounts are given as credit to
22
poor in rural5 semi.urban and urban areas to enable them to
raise their income levels and improve living standards*
"inor Accounts. " minor is a person who has not attained
legal age o 6< years* "s per &ontract "ct a minor cannot
enter into a contract but as per 'egotiable #nstrument "ct5 a
minor can draw5 negotiate5 endorse5 receive payment on a
'egotiable #nstrument so as to bind all the persons5 e1cept
himsel* #n order to boost their deposits many ban%s open
minor accounts with some restrictions*
"obile Bankin% . With the help o M.$an%ing or mobile
ban%ing customer can chec% his ban% balance5 order a
demand drat5 stop payment o a che>ue5 re>uest or a
che>ue boo% and have inormation about latest interest
rates*
"oney ;aunderin%. When a customer uses ban%ing
channels to cover up his suspicious and unlawul inancial
activities5 it is called money laundering*
"oney "arket. Money mar%et is not an organized mar%et
li%e $ombay Stoc% E1change but is an inormal networ% o
ban%s5 inancial institutions who deal in money mar%et
instruments o short term li%e &P5 &) and (reasury bills o
Government*
"oratorium. R*$*#* imposes moratorium on operations o
a ban%7 i the aairs o the ban% are not conducted as per
ban%ing norms* "ter moratorium R*$*#* and Government
e1plore the options o saeguarding the interests o
depositors by way o change in management5 amalgamation
or ta%e over or by other means*
"ort%a%e. (ranser o an interest in speciic immovable
property or the purpose o oering a security or ta%ing a
loan or advance rom another* #t may be e1isting or uture
debt or perormance o an agreement which may create
monetary obligation or the transeror Imortgagor)*
"utual 7und. " company that invests in and
proessionally manages a diversiied portolio o securities
and sells shares o the portolio to investors*
&ABA0?. 'ational $an% or "griculture 4 Rural
)evelopment was setup in 6=</ under the "ct o 6=<6*
'"$"R) inances and regulates rural inancing and also is
responsible or development agriculture and rural
industries*
&e%otiation. #n the conte1t o ban%ing5 negotiation means
an act o transerring or assigning a money instrument rom
one person to another person in the course o business*
&et Asset Palue. (he underlying value o a share o stoc%
in a particular mutual und7 also used with preerred stoc%*
&on:7und Based ;imits. 'on.-und $ased +imits are
those type o limits where ban%er does not part with the
unds but may have to part with unds in case o deault by
the borrowers5 li%e guarantees5 letter o credit and
acceptance acility*
&on:0esident. " person who is not a resident o #ndia is a
non.resident*
&on:0esident Accounts. "ccounts o non.resident #ndian
citizens opened and maintained as per R*$*#* Rules*
&otary 3ublic. " +awyer who is authorized by
Government to certiy copies o documents *
&3A Account. # interest and instalments and other ban%
dues are not paid in any loan account within a speciied
time limit5 it is being treated as non.perorming assets o a
ban%*
'ff Balance 1heet 6tems. (hose items which aect the
inancial position o a business concern5 but do not appear
in the $alance Sheet E5g guarantees5 letters o credit * (he
mention Po $alance Sheet itemsP is oten ound in
"uditors Reports or )irectors Reports*
'ffer for 1ale. "n oer to the public by5 or on behal o5
the holders o securities already in issue*
'ffer for 1ubscription. (he oer o new securities to the
public by the issuer or by someone on behal o the issuer*
'nline Bankin%. $an%ing through internet site o the ban%
which is made interactive*
'pen:end ="utual> 7und. (here is no limit to the number
o shares the und can issue* (he und issues new shares o
stoc% and ills the purchase order with those new shares*
#nvestors buy their shares rom5 and sell them bac% to5 the
mutual und itsel* (he share prices are determined by their
net asset value*
'pen 'ffer. "n oer to current holders o securities to
subscribe or securities whether or not in proportion to their
e1isting holdings*
'ption. " security that gives the holder the right to buy or
sell a certain amount o an underlying inancial asset at a
speciied price or a speciied period o time*
'versubscribed. When an #nitial Public ,ering has more
applications than actual shares available* #nvestors will
oten apply or more shares than re>uired in anticipation o
only receiving a raction o the re>uested number* #nvestors
and underwriters will oten loo% to see i an #P, is
oversubscribed as an indication o the publicMs perception
o the business potential o the #P, company*
3ass Book. " record o all debit and credit entries in a
customer@s account* Generally all ban%s issue pass boo%s to
Savings $an%F&urrent "ccount Colders*
3ar Bond. " bond selling at par Ii*e* at its ace value)*
3ar Palue. (he ace value o a security*
3erpetual Bonds. $onds which have no maturity date*
3lacin%. ,btaining subscriptions or5 or the sale o5
primary mar%et5 where the new securities o issuing
companies are initially sold*
3ersonal 6dentification &umber =36&>. Personal
#dentiication 'umber is a number which an "(M card
23
holder has to %ey in beore he is authorized to do any
ban%ing transaction in a "(M *
3lastic "oney. &redit &ards5 )ebit &ards5 "(M &ards and
#nternational &ards are considered plastic money as li%e
money they can enable us to get goods and services*
3led%e. " bailment o goods as security or payment o a
debt or perormance o a promise5 e*g pledge o stoc% by a
borrower to a ban%er or a credit limit* Pledge can be made
in movable goods only*
3ost:?ated 8he9ue. " &he>ue which bears the date
which is subse>uent to the date when it is drawn* -or
e1ample5 a che>ue drawn on <th o -ebruary5 /00; bears
the date o 6/th -ebruary5 /00;*
3ower of Attorney. #t is a document e1ecuted by one
person . )onor or Principal5 in avour o another person5
)onee or "gent . to act on behal o the ormer5 strictly as
per authority given in the document*
3ortfolio. " collection o investment vehicles assembled to
meet one or more investment goals*
3reference 1hares. " corporate security that pays a i1ed
dividend each period* #t is senior to ordinary shares but
?unior to bonds in its claims on corporate income and assets
in case o ban%ruptcy*
3remium =Warrants>. (he dierence o the mar%et price
o a warrant over its intrinsic value*
3remium Bond. $ond selling above par*
3resent Palue. (he amount to which a uture deposit will
discount bac% to present when it is depreciated in an
account paying compound interest*
3resent Palue of an Annuity. (he amount to which a
stream o e>ual cash lows that occur in e>ual intervals will
discount bac% to present when it is depreciated in an
account paying compound interest*
3rice-4arnin%s 0atio =3-4>. (he measure to determine
how the mar%et is pricing the companyMs common stoc%*
(he priceFearnings IPFE) ratio relates the companyMs
earnings per share IEPS) to the mar%et price o its stoc%*
3rivatization. (he sale o government.owned e>uity in
nationalized industry or other commercial enterprises to
private investors*
3rospectus. " detailed report published by the #nitial
Public ,ering company5 which includes all terms and
conditions5 application procedures5 #P, prices etc5 or the
#P,
3ut 'ption. (he right to sell the underlying securities at a
speciied e1ercise price on o beore a speciied e1piration
date*
3remature Withdrawals. (erm deposits li%e -i1ed
)eposits5 &all )eposits5 Short )eposits and Recurring
)eposits have to mature on a particular day* When these
deposits are sought to be withdrawn beore maturity 5 it is
premature withdrawal*
3rime ;endin% 0ate =3;0>. (he rate at which ban%s lend
to their best Iprime) customers*
3riority 1ector Advances . consist o loans and advances
to "griculture5 Small Scale #ndustry5 Small Road and
Water (ransport ,perators5 Retail (rade5 Small $usiness
with limits on investment in e>uipments5 proessional and
sel employed persons5 state sponsored organisations or
lending to S&FS(5 Educational +oans5 Cousing -inance up
to certain limits5 sel.help groups and consumption loans*
3romissory &ote. Promissory 'ote is a promise F
underta%ing given by one person in writing to another
person5 to pay to that person 5 a certain sum o money on
demand or on a uture day*
3rovisionin%. Provisioning is made or the li%ely loss in
the proit and loss account while inalizing accounts o
ban%s* "ll ban%s are supposed to ma%e assets classiication
and ma%e appropriate provisions or li%ely losses in their
balance sheets*
3ublic 1ector Bank. " ban% ully or partly owned by the
Government*
0ate of 0eturn. " percentage showing the amount o
investment gain or loss against the initial investment*
0eal 6nterest 0ate. (he net interest rate over the inlation
rate* (he growth rate o purchasing power derived rom an
investment*
0edemption Palue. (he value o a bond when redeemed*
0einvestment Palue. (he rate at which an investor
assumes interest payments made on a bond which can be
reinvested over the lie o that security*
0elative 1tren%th 6nde5 =016>. " stoc%Ms price that
changes over a period o time relative to that o a mar%et
inde1 such as the Standard 4 PoorMs :005 usually measured
on a scale rom 6 to 6005 6 being the worst and 600 being
the best*
0epurchase A%reement. "n arrangement in which a
security is sold and later bought bac% at an agreed price and
time*
0esistance ;evel. " price at which sellers consistently
outnumber buyers5 preventing urther price rises*
ReturnO "mount o investment gain or loss*
0eschedulin% of 3ayment. Rearranging the repayment o
a debt over a longer period than originally agreed upon due
to inancial diiculties o the borrower*
0estrictive 4ndorsement. Where endorser desires that
instrument is to be paid to particular person only5 he
restricts urther negotiation or transer by such words as
PPay to "sho% onlyP* 'ow "sho% cannot negotiate the
instrument urther*
0i%ht of Appropriation. "s per Section := o the #ndian
&ontract "ct5 6=;/ while ma%ing the payment5 a debtor has
the right to direct his creditor to appropriate such amount
against discharge o some particular debt* # the debtor does
24
not do so5 the ban%er can appropriate the payment to any
debt o his customer*
0i%ht of 1et:'ff . When a ban%er combines two accounts
in the name o the same customer and ad?usts the debit
balance in one account with the credit balance in other
account5 it is called right o set.o* -or e1ample5 debit
balance o Rs*:05000F. in overdrat account can be set o
against credit balance o Rs*;:5000F. in the Savings $an%
"ccount o the same customer5 leaving a balance o
Rs*/:5000F. credit in the savings account*
0i%hts 6ssue. "n oer by way o rights to current holders
o securities that allows them to subscribe or securities in
proportion to their e1isting holdings*
0isk:Averse 0isk:&eutral 0isk:!akin%.
Ris%.averse describes an investor who re>uires greater
return in e1change or greater ris%*
Ris%.neutral describes an investor who does not re>uire
greater return in e1change or greater ris%*
Ris%.ta%ing describes an investor who will accept a lower
return in e1change or greater ris%*
1afe 8ustody. When articles o value li%e ?ewellery5
bo1es5 shares5 debentures5 Government bonds5 Wills or
other documents or articles are given to a ban% or sae
%eeping in its sae vault5 it is called sae custody** $an%
charges a ee rom its clients or such sae custody*
1avin%s Bank Account. "ll ban%s in #ndia are having the
acility o opening savings ban% account with a nominal
balance* (his account is used or personal purposes and not
or business purpose and there are certain restrictions on
withdrawals rom this type o account* "ccount holder gets
nominal interest in this account*
1enior Bond. " bond that has priority over other bonds in
claiming assets and dividends*
1ettlement. &onclusion o a securities transaction when a
customer pays a bro%erFdealer or securities purchased or
delivered5 securities sold5 and receive rom the bro%er the
proceeds o a sale*
1hort Ned%e. " transaction that protects the value o an
asset held by ta%ing a short position in a utures contract*
1hort 3osition. #nvestors sell securities in the hope that
they will decrease in value and can be bought at a later date
or proit*
1hort 1ellin%. (he sale o borrowed securities5 their
eventual repurchase by the short seller at a lower price and
their return to the lender*
1peculation. (he process o buying investment vehicles in
which the uture value and level o e1pected earnings are
highly uncertain*
1tock 1plits. Wholesale changes in the number o shares*
-or e1ample5 a two or one split doubles the number o
shares but does not change the share capital*
1ubordinated Bond. "n issue that ran%s ater secured
debt5 debenture5 and other bonds5 and ater some general
creditors in its claim on assets and earnings* ,wners o this
%ind o bond stand last in line among creditors5 but beore
e>uity holders5 when an issuer ails inancially*
1ubstantial 1hareholder. " person ac>uires an interest in
relevant share capital e>ual to5 or e1ceeding5 60A o the
share capital*
1upport ;evel. " price at which buyers consistently
outnumber sellers5 preventing urther price alls*
!eller . (eller is a sta member o a ban% who accepts
deposits5 cashes che>ues and perorms other ban%ing
services or the public*
!echnical Analysis. " method o evaluating securities by
relying on the assumption that mar%et data5 such as charts
o price5 volume5 and open interest5 can help predict uture
Iusually short.term) mar%et trends* &ontrasted with
undamental analysis which involves the study o inancial
accounts and other inormation about the company* I#t is an
attempt to predict movements in security prices rom their
trading volume history*)
!ime Norizon. (he duration o time an investment is
intended or*
!radin% 0ules. Stipulation o parameters or opening and
intra.day >uotations5 permissible spreads according to the
prices o securities available or trading and board lot sizes
or each security*
!rust ?eed. " ormal document that creates a trust* #t
states the purpose and terms o the name o the trustees and
beneiciaries*
Bnderwritin% . is an agreement by the underwriter to buy
on a i1ed date and at a i1ed rate5 the unsubscribed portion
o shares or debentures or other issues* 3nderwriter gets
commission or this agreement*
Bnderlyin% 1ecurity. (he security sub?ect to being
purchased or sold upon e1ercise o the option contract*
Bniversal Bankin% . When $an%s and -inancial
#nstitutions are allowed to underta%e all types o activities
related to ban%ing li%e acceptance o deposits5 granting o
advances5 investment5 issue o credit cards5 pro?ect inance5
venture capital inance5 oreign e1change business5
insurance etc* it is called 3niversal $an%ing*
Paluation. Process by which an investor determines the
worth o a security using ris% and return concept*
Pirtual Bankin%. !irtual ban%ing is also called internet
ban%ing5 through which inancial and ban%ing services are
accessed via internet@s World Wide Web* #t is called virtual
ban%ing because an internet ban% has no boundaries o
bric% and mortar and it e1ists only on the internet*
25
Warrant. "n option or a longer period o time giving the
buyer the right to buy a number o shares o common stoc%
in company at a speciied price or a speciied period o
time*
Wholesale Bankin%. Wholesale ban%ing is dierent rom
Retail $an%ing as its ocus is on providing or inancial
needs o industry and institutional clients*
Window ?ressin%. -inancial ad?ustments made solely or
the purpose o accounting presentation5 normally at the
time o auditing o company accounts*
Qield =6nternal rate of 0eturn>. (he compound annual
rate o return earned by an investment
Qield to "aturity. (he rate o return yield by a bond held
to maturity when both compound interest payments and the
investorMs capital gain or loss on the security are ta%en into
account*
sBA&O6&A AWA04&411
BA&O6&A '"BB?1"A&
Provides independent5 e1peditious and ine1pensive orum
to aggrieved ban%
customers* R$# introduced this scheme under powers
granted under $an%ing Regulations "ct
6=9=* &hie General Manager or General Manager o R$#
will be appointed as $an%ing
,mbudsman or a term not e1ceeding 8 years at a time*
$an%ing ,mbudsman ta%es care o
the grievances o SER!#&E )E-#&#E'&#ES #' $"'D
#')3S(RE li%e in delayed
collection o che>ues5 remittances5 wrong debitFcredit in
deposit accounts and other ancillaryF
advances area including air practice code5 credit card etc*
and in loans. non. observance o
R$# directives5 delay in sanction or disbursement 5time
schedules are included*
(he aggrieved customer can lodge his complaint in
electronic mode also* $eore lodging a
complaint with ,mbudsman the &ustomer should complain
to the concerned ban% irst and
wait or one month*
(he period within which a customer can lodge a complaint
with ,mbudsman is one year
rom the date o cause o action* (he ma1imum award that
will be given by ,mbudsman is
up to Rs*60lac* "ny party can ile appeal within 80 days on
receiving award or the
ombudsman re?ecting his complaint to appeal authority* #
the appeal is by the ban%5 it should
be made with approval o &M) or E) or &E, only* ,ne
o the )eputy Governors will be
appointed as "ppellate "uthority5 in case the award given
by the ,mbudsman is not
acceptable to the parties*
O&'W Q'B0 8B1!'"40 =OQ8>
DE& guidelines issued by R$# to chec% money laundering
i*e* using o ban%ing channel or
conversion o illegal unds into legal unds and inancial
rauds*
1uitable Auidelines were issued based on the
recommendations o -#'"'&#"+ "&(#,'
("SD -,R&E I-"(-) on "nti money laundering I"M+)
standards and on combating
inancing o terrorism*
3nder DE& norms ban%s are e1pected to veriy the identity
proo and address proo li%e
Passport5 Pan &"R)5 !oter card5 )riving license5 #dentity
card to ban%Ms satisaction5 +etter
rom recognized public authority*
;iberalized OQ8 &orms. Simpliied criteria o
identiication and introduction to be
ollowed in small deposit accounts where the debits should
not e1ceed Rs*:05000 and &redit
transactions should not e1ceed Rs 6*00 la%hs and total
transactions in a year does not e1ceed
Rs* /lac Icredit transaction should not e1ceed Rs*6lac) #n
these cases5 aFc can be introduced
by person having satisactory accounts or 2months and sel
certiication on address along
with photograph*
8oncepts of 3A& A60 and !A&(
P"' is Permanent "ccount 'umber* P"' number is being
allotted to the #ndividuals by
#ncome (a1 )epartment* #t is a (E' )igit "lphanumeric
number* 'ow it is mandatory to
have P"' all the e1isting #ncome ta1 assesses and uture
assesses and those who enter into
inancial transactions on behal o sel or on behal o any
others* -orm or applying P"' is
-orm 9="* -or ,ne there is only ,ne P"'5 i issued it is
permanent even i the person
changes hisFher proession or even change o address*
A60 is A4&40A; 6&?4E 04A61!40 number was
earlier being allotted by the #ncome
(a1 department or assessees in olden days but ever since
the P"' is in place G#R number
system is now obsolete*
("' means ("B )E)3&(#,' 4 &,++E&(#,'
"&&,3'( '3M$ER* (his is also a 60
)igit "lphanumeric number* (his number must be obtained
by all the persons and
organization those who are responsible or deducting (a1
or collecting ta1 and remitting the
same to the #ncome (a1 department* "ll employers who
deduct ta1 at source rom
26
employeeMs salaries also must obtain ("' number* (an
number shall be >uoted in all
()SF(&S returns* (he applicants have to submit -orm 9=$
or allotment o ("'* Even i
any Government ,ice deducting ()S it also shall apply
or ("'5 Cence all $an% branches
shall individually apply or ("'*
8oncept of 7orm 1)A and 7orm 1)N (
-orm 6:G 4 -orm 6:C* # a )epositor is not a Senior
&itizen and his (a1able #ncome is
within the e1empted limits then he has to submit -orm 6:G
to the $an% or not deducting ta1
at source* #n the same case i the )epositor is a Senior
&itizen then he has to submit -orm
'o*6:C* #n case o interest paidFpayable amounts are
e1ceeded the (a1 e1empted limited
then -orm 6:G and -orm 6:C shall not be accepted*
"s per the budget pronouncements w*e* 06* 09* /060
depositor must submit P"' number
otherwise the rate o ()S will be at /0A* # a )epositor
submitted -orm 6:G 4 6:C but
P"' number not submitted the $an% has to deduct (a1 at
the rate applicable or at /0A
whichever is higher*
&eed for 7orm *2 and 7orm *1 while openin% accountsS
While opening an account the prospective customer do not
have P"' number5 then he has to
submit a declaration in -orm 205 and incase the prospective
customer whose income comes
rom only "griculture sources then he has to give a
declaration in -orm 26*
74A!B041 '7 &'"6&A!6'& A8!
'omination is available or a) )eposit accounts b) Sae
custody articles and +oc%ers*
'omination is available only or deposit accounts and not
or loan accounts*
'omination is available or all types o deposit accounts
irrespective o nomenclature*
'omination is available or accounts which are in the name
o individuals in their individual
capacity5 i*e*5 it is not available or Partnerships5 (rust5 +td
company5 &lub etc*
'omination is available to a sole proprietor provided the
sole proprietor is an individual*
'omination is available or ?oint account o individuals*
'omination can be made at any time during which the
deposit is held with the ban%* #t can
also be made available or old account*
'omination continues on renewal o term deposit unless it
is cancelled or changed*
'ominee has to be an individual and hence a -irm5 &lub5
&ompany5 (rust etc cannot act a
nominee*
#n nomination act the nominee is treated as an agent or
receiving money* Ce is not the
owner* Ce is duty.bound to pass on the money to the legal
heir* So the legal heir can claim
money rom the nominee* $ut the ban% on payment to
nominee is ully discharged*
'omination acility is obligatory or ban%s*
,n death o a person5 i si1 months lapse and no person
turns up5 the ban% has to inorm the
nominee about nomination in case o deposit account* (his
inormation is to be given within
three months in case o loc%er account*
'omination is available in respect o both residents as well
as nonresident accounts
Banker:8ustomer 0elationship
(he relationship between ban%er and customer deers
depending on the transaction*
!ransactions Banker 8ustomer
"cceptance o deposit )ebtor &reditor
+oan &reditor )ebtor
&ollection o cherubFSell o securities "gent Principal
,n behal o customer
Purchase o )) "gent Principal
Payee o )) and issuing ban% $eneiciary (rustee
Sae custody o article $ailed $aylor
Sae deposit o loc%er +esser +essee
06
S$# P, E1am . Special &urrent "air Supplement
1> 6ndia implemented Basel 666 norms which comprises
of new %lobal capital rules for banks from which date(
K 6 "pril
/068 I3nder $asel ### norms5 #ndian ban%s will have to hol
d core capital o at least seven percent o ris%.weighted ass
ets)
2> What is the name of the bill passed by the ;ok 1abha
on 1, ?ecember 2212 which seeks to stren%then banki
n%
re%ulations in the country( L $an%ing +aws I"mendmen
t) $ill /066 I(his bill see%s to raise voting rights o investo
rs in
private sector ban%s to /2 per cent rom present 60 per cen
t and also allows R$# to supersede boards o private sector
ban%s to increase the cap on their voting rights to 60 per ce
nt rom 6 per cent
27
3> 7inancial sector re%ulators L (he Reserve $an% o #nd
ia IR$#)5 Securities and E1change $oard o #ndia ISE$#)5
#nsurance Regulatory and )evelopment "uthority I#R)")
and Pension -und Regulatory and )evelopment "uthority
IP-R)")5 on < March /068 ?oined hands by signing an ag
reement under the auspices o the -inancial Stability and
)evelopment &ouncil I-S)&)* What are the main ob?ectiv
es o this moveS K (hese regulators would monitor inanci
al
conglomerates I-&s) o the country as well as approve a na
tional strategy or inancial education I(he term -& stands
orinancial conglomerates and applies to inancial groups
li%e #&#&#5 S$# and C)-&5 which are engaged in varied i
nancialactivities li%e ban%ing5 mutual unds5 insurance and
private e>uity)
$> !he Bnion %ovt. on 2) "arch 2213 announced reduc
tion in interest rates offered under several small savin%
s schemes
li%e PP-5 'S&5 post oice savings5 etc* (his reduction in i
nterest rates was announced ollowing govt*Ms decision last
year
to lin% the small savings returns with the mar%et rate* (his
decision was ta%en into eect ater govt* implemented
recommendations o which committee some time agoS . S
hyamala Gopinath &ommittee I(his committee had sugges
ted
that returns should be in sync with mar%et rates determined
by the returns oered by other securities* Cence the govt*
has
to announce new interest rates at the beginning o the inan
cial year5 which was what e1actly done on /: March /068*
(hechange in interest rates would come into eect rom 6
"pril /068)
6mpact on ma#or tools of 1mall 1avin%s .
PP- IPublic Provident -und) O "nnual rate o interest redu
ced rom <*<A to <*;A
'S& I'ational Savings &ertiicate : yr) O "nnual rate o in
terest reduced rom <*2A to <*:A
'S& I'ational Savings &ertiicate 60 yr) O "nnual rate o i
nterest reduced rom <*=A to <*<A
Senior &itizenMs Saving Scheme IS&SS) O "nnual rate o i
nterest reduced rom =*8A to =*/A
Monthly #ncome Scheme IM#S) o : years maturity O "nnu
al rate o interest reduced rom <*:A to <*9A
Savings )eposit Scheme O 3nchanged at 9A
)> A committee durin% Ranuary 2213 supported views o
f banks in which they had re#ected 0B6 proposal to sta
rt portabilityscheme for bank accounts in 6ndia. Who
was the head of this committee( L !i?ay &hugh I&hie G
M o the R$#) K (he
committee led by him supported claim o ban% authorities t
hat this scheme is uneasible as it would tantamount to hug
e
upgrades in related sotware
*> What are the important %uidelines issued by the 0B6
for openin% new banks in 6ndia as announced on 22 7e
bruary2213( L a) Private irms5 public sector entities and
'$-&s are eligible to set up a ban% b) (he initial minimu
m paidupe>uity capital to be Rs* :00 crore c) "pplicants s
hould be inancially sound with a 60.year trac% record d)
"pplication or
opening new ban% should be via 'on.&ooperative -inanci
al Colding &ompany I',-C&) e) ',C-& to initially hol
d a
minimum 90A sta%e in the ban% or : years5 which should
be brought down to 6:A over 6/ years ) (he new ban% ha
s toget listed within 8 years o the commencement o busin
ess g) -oreign shareholding in the new ban% to be capped a
t 9=A
or the irst : years h) "t least /:A o branches o a new b
an% should be set up in unban%ed rural areas
0/
S$# P, E1am . Special &urrent "air Supplement
+> What is the name of 6ndiaKs *th commodity e5chan
%e which started its operations on 1/ April 2213( L 3
niversal
&ommodity E1change or 3&B I3&B is promoted by &o
mme1 (echnology in ?oint venture with #)$# $an%5 #--
&,5 '"$"R)
and RE&* ,ther : e1isting commodity e1changes o #ndi
a are '&)EB5 M&B5 #&EB5 'M&E and "&E)
,> 0eserve Bank of 6ndia =0B6> on 22 7ebruary 2213 i
ssued final %uidelines for issuin% licenses for openin%
new banks. 0B6
has thus decided to remove all restrictions on eligibilit
y o corporates and groups to apply or the ban%ing licen
se* When the
28
R$# had last issued licenses or opening ban%sS K )uring
/008.095 when two ban%s K Dota% Mahindra $an% and E
es $an%
were
issued licenses
/> What is the meanin% of acronym &'7N8 which c
ame to hi%hli%ht in the announcement of %uidelines fo
r bankin% license
by the 0B6( L 'on.,perative -inancial Colding &ompa
ny
12> What is the name of a recently constituted commi
ttee to take decisions on investments whose first meet
in% was held on32 Ranuary 2213( L &abinet &ommittee
on #nvestments I&&#)
12> Which two public sector undertakin%s =31Bs> wer
e %ranted the "aharatna status by union %ovt. on 1 7
ebruary 2213( L
$CE+ and G"#+ I(his will provide these two PS3s grea
ter inancial and unctional autonomy and ensure better v
aluation o
their shares)
13> What is the new name of "et;ife 6ndia ;imited a
fter 3un#ab &ational Bank =3&B> si%ned an a%reemen
t to ac9uire 32
per cent stake in the company on $ 7ebruary 2213( L
P'$ Met+ie #ndia #nsurance &ompany +imited IP'$
Met+ie
#nsurance was also launched oicially by 3nion -inance
Minister P* &hidambaram on 9 -ebruary /068)
1$> What is the name of a newly formed association f
ormed recently by 32:odd software companies of 6ndi
a which is %oin%
to evolve as an alternative to &A118'"( : #ndian So
tware Product #ndustry Round (able or iSpirt IiSpirt has
been ormed
by #ndian sotware companies who believe that '"SS&
,M would not be able to provide more growth avenues t
o them in
uture*Cowever5 iSpirt members clearly stated that they s
ee no conlict with '"SS&,M)
1)> Bnion %ovt. on * 7ebruary 2213 constituted an ad
visory panel for the electricity sector with an ob#ectiv
e to iron out the
issues impactin% the %rowth of the sector. Who is the
head of this panel( L Hyotiraditya Scindia5 3nion Power
Minister I(his
panel also includes industry leaders li%e &yrus P Mistry I
&hairman5 (ata Sons)5 "nil "mbani I&hairman ")"G)5
Pratip
&haudhuri I&hairman5 S$#) and &handa Dochhar IM)5 #
&#&# $an%) and many senior govt* oicials* (he panel w
ill delve
into the problems plaguing the power sector5 the most im
portant being the raw material insecurity which threatens
to upset
the electricity production targets)
1*> An 0B6 panel on * 7ebruary 2213 proposed a sle
w of measures like mandatory 9uotin% of 3A& card n
umbers for
hi%h:value purchases restriction on %old loans and ch
eck on &B78 branches dealin% with %old loans. !hese
proposals have
been %iven in view of risin% %old imports which has w
idened countryKs current account deficit =8A?>. Who
is the head of this
panel( L D*3*$* Rao5 an R$# oicer IGold import is the
second ma?or contributor to the &") ater oil* Gold imp
ort in
"pril.)ecember stood at 3S) 8< billion* #n /066.6/ isc
al it was 3S) :2 billion)
1+> !he Bnion 8abinet on + 7ebruary 2213 approved
enhancin% the authorised capital of the &ational Ban
k for A%riculture and
0ural ?evelopment =&ABA0?> to 0s. _________ fro
m 0s. )222 crore and e5pandin% its scope of operatio
ns( K Rs5 /05000
crore
S$# P, E1am . Special &urrent "air Supplement
1/> Which stock e5chan%e became 6ndiaKs newest stoc
k e5chan%e on / 7ebruary 2213 after 7inance "iniste
r 3.8hidambaram inau%urated it( L "8E:1E ="8E
:SB will ormally launch its trading operations on 66 -e
bruary /068 as
29
= and 60 -ebruary are trading holidays* (his newest stoc
% e1change o #ndia will compete with two established st
oc%
e1changes o the country K 'SE and $SE)
22> What was net profit of countryKs lar%est Bank 1B
6 for the third 9uarter of 2212:13 as announced on 1
$ 7ebruary 2213( L
Rs* 85/28 crore Ior ,ct.)ec /06/) 'et proits o S$# in
creased by ?ust 9*0<A5 which is the smallest increase in
proit or last
si1 >uarters
21> Which 6ndian private sector bank launched iWish
an online recurrin% deposit product tar%eted primar
ily at youn%
depositors on ) ?ecember 2212( : #&#&# $an% I#n this
new deposit5 unli%e regular recurring deposits5 investors
will not be
penalised or missing a monthly installment* Cowever5 t
hey will have to ma%e up or the missed payments in the
subse>uent
months)
22> What was the name of a new inde5 launched by t
he Bombay 1tock 45chan%e =B14> on 1$ ?ecember 2
212 that was
constituted by the 1"4s =small and medium enterpri
ses> listed on the B14 1"4 platform( L SME #P, #nd
e1 I(his inde1
aims at trac%ing the current primary mar%et conditions in
the #ndian capital mar%et and measure the growth in inve
storsM wealth
over a period)
23> !he 0B6 on 1)th ?ecember 2212 proposed ti%hter
norms for non:bankin% financial companies =&B78s>
with re%ard to
capital re>uirements5 ris% weights5 provisioning norms a
nd asset classiication* (he ban% proposed has sta%e tran
ser o
'$-&s or more than how much percent will now re>uir
e R$#Ms prior approvalS K More than /: per cent
2$> Which life insurance companyKs claim settlement
ratio was the best amon% 6ndian life insurance compa
ny accordin% to areport of 60?A released durin% ?ec
ember 2212( L +ie #nsurance &orporation I+#&)5 whos
e claim settlement was the highest
at =;*9/ per cent as against <=*89 per cent o #ndiaMs priv
ate lie insurance companies and industry average o =2*
/2 per cent
2)> !he union cabinet on 12 Ranuary 2213 approved
a capital infusion packa%e that would help improve li
9uidity and
maintain capital ade9uacy ratios of about 12 public s
ector banks. Now much fund was released for this inf
usion( L 0s. 12)1+crore
2*> !he 1+:member bank consortium which kick:
started the process of recovery of loans from troubled
Oin%fisher Airlines
formed a sub:%roup of four banks to oversee the loan
recovery. Which four banks constitute this newly for
med sub:%roup( L
State $an% o #ndia IS$#)5 #)$# $an%5 Pun?ab 'ational
$an% IP'$) and $an% o #ndia IDingisher "irlines owe
aboutRs* <5000 crore to these 6;ban%s)
2+> !he 0eserve Bank of 6ndia =0B6> recently fi5ed u
pper limit on rate of interest that can be char%ed by
micro finance
institutions ="76s> in the country. What is this upper
limit of interest above which "76s cannot char%es fr
om individuals(
K /2 A p*a*
/<) #ndiaMs largest credit card issuer C)-& $an% during
-ebruary /068 started replacing some o its points o sal
e IPoS)
machines at a few merchant establishments. !his has
been done in view of which problem the bankin% indu
stry is facin%
associated with credit cards( L &ases o Ts%immingM ha
ve been witnessed in #ndia o late5 wherein the card data
is copied
illegally in an otherwise legitimate transaction5 only to b
e used raudulently later IC)-& $an% is one o the large
st players in
merchant ac>uisition space with close to /*: la%h machin
es and about 2*9 million credit cards)
S K /2 A p*a*
30
09
S$# P, E1am . Special &urrent "air Supplement
2/> "arket re%ulator 14B6 on 1/ "arch 2213 issued
%uidelines pertainin% to product labellin% with colour
codin% of mutual
fund products which will be effective from 1 Ruly 221
3. Now many colours have been made available in thi
s colour codin%
scheme( L !hree colours L $lue5 Eellow and $rown I"
blue colour coded bo1 would indicate low ris%5 yellow w
ould signiy a
medium ris%5 while brown would represent schemes with
high ris%* "s per the guidelines issued by the SE$#5 prod
uct labels
carrying details about the schemes would be disclosed o
n the ront page o initial oeringsM application orms)
32> Now much money was recently infused into the 1t
ate Bank of 6ndia =1B6> countryKs lar%est bank by th
e union %ovt.
recently as part of its plan of recapitalization of state
:run banks( L Rs* 8009 crore IWith this resh inusion
3nion govt*Ms
holding in S$# has increased rom 26*:<A to 2/*86A* #t
should be noted that Government plans to inuse around
Rs 695000
crore in state.run ban%s this iscal to boost their core cap
ital ratios as they prepare to comply with the $asel.### gu
idelines5
which will start rom 6 "pril /068)
32> 0eserve Bank of 6ndia on 1/ "arch 2213 reduced
the 0epo 0ate by 2.2)S after which e5pectations of l
owerin% of
lendin% rates by banks have arisen. What is the new
0epo 0ate after this reduction( L ;*:A I(his reduction
in Repo Rate
was announced in R$#Ms mid.>uarter monetary policy re
view* (he short term borrowing rate5 popularly %nown as
Reverse
Repo Rate5 was also reduced by 0*/:A5 which is now 2*
:A* Cowever5 the &ash Reserve Ratio I&RR) remained
unchanged
at 9A* Repo Rate is the interest rate at which ban%s borr
ow short.term cash rom the R$# whereas Reverse Repo
Rate is the
rate at which ban%s provide short.term cash to the R$#)
33> !he 8abinet 8ommittee on 4conomic Affairs on
$ April 2213 announced decontrol of countryKs su%ar
sector after
acceptin% the recommendations of a committee on su
%ar price decontrol. Who was the 8hairman of this co
mmittee which
submitted its report on 2+ "arch 2213 to the Bnion
Aovt.( : )r &* Rangara?an5 &hairman Economic "dviso
ry &ouncil to the
Prime Minister
3$> Which ma#or British bank started layin%:off its e
mployees in 6ndia durin% 7ebruary 2213 as part of cl
osure of its retail and
commercial bankin% operations in the country( L R$
S IRoyal $an% o Scotland* R$S had sold its "sian asset
s to "ustralia
and 'ew Gealand $an%ing) &orp* recently to comply wit
h its bailout norms)
8:) (he Reserve $an% o #ndia IR$#) on 6 March /068 i
n a newly issued notiication as%ed ban%s to issue new d
ebit and
credit cards only or domestic usage unless international
use is speciically sought by the customer* (his notiicati
on was
issued in respect o which problemS K Misuse o these ty
pe o debit and credit cards IR$# directed ban%s that suc
h cards
enabling international usage will have to be essentially E
M! &hip and Pin enabled by 80 Hune /068* #t also said t
hat the
ban%s should provide easier methods li%e SMSes or cust
omers to bloc% cards and get a conirmation to that eect
ater
bloc%ing the card)
3*> Which three private sector banks were char%ed o
n 1$ "arch 2213 by independent investi%ative #ourna
list Aniruddha
Bahal of 8obrapost.com of bein% alle%edly involved i
n widespread money launderin% activities( : #&#&# $a
n%5 C)-& $an%5
"1is $an% I&obrapost*com conducted numerous sting op
erations to vindicate its stand)
31
3+> Who is the head of a newly constituted $:member
panel which would %ive clear definitions to 7?6 and
766 with an aim to
remove ambi%uity over the two types of forei%n invest
ments( L "rvind Mayaram ISecretary5 Economic "air
s)
3,> 3remium for motor insurance was increased by a
n avera%e of how much from 1 April 2213 as announ
ced by the
insurance re%ulator 60?A a few days a%o( L /0A ICo
wever5 these rates are way below the hi%e proposed in th
e e1posure
drat loated in -ebruary /068)
3/> Which private bank leads amon%st all banks in 6n
dia as far as number of customers usin% mobile
bankin% facility is concerned accordin% to data releas
ed by 6ndian %ovt.( K C)-& $an% I"round 6*;/
crore customers o C)-& $an%
use mobile ban%ing acility)
1. 0ecently who received the "ahatma Aandhi
6nternational Award for 3eace and 0econciliation(
6) "ngela Mer%el o Germany
/) Ellen Hohnson Sirlea o +iberia
8) $rigalia $am o South "rica
9) "zim Prem?i o #ndia
:) 'one o above
2. ;oans to poor people by banks have many limitations
includin% lack of security and hi%h operatin% cost. 1o to
help them which type of finance system developed(
6) Ponzi schemes
/) Micro -inance System
8) Money +aundering Schemes
9) Money tampering inance
:) Super vision -inance
8* (he ollowing statements are related to Micro -inance
system* +ocate the wrong option*
6) #t provides micro credit having scope or small savings
and remittance o unds
/) #t based on the principle o livelihood creation
8) (he livelihood mission means engaging in activities in a
routine ashion to generate cash or non.cash income
9) Cigh volumes o low transactions done through this
system
:) 'one
$. Who introduced the concept of "icrofinance in
Ban%ladesh in the form of the TArameen BankT( Ne is
the &obel laureate known by many as the Tfather of
microfinance systems<<.
6) &*)*)eshmuc%
/) "martya Sen
8) Muhammad Eunus
9) Shei% Cassena
:) Muzibaer Rehman
). !he beneficiaries of "icro finance business is(
6) +and less labour
/) Marginal armers
8) !endors in the small mar%ets
9) Caw%ers
:) "ll o above
*. 1alustiano 1anchez is the(
6) Cighest goal ma%er in S""- oot ball contest
/) -irst pilot o &.6; transport aircrat carrier
8) Hapan prime minister visiting 3S" or "rms Reduction
(al%s
9) World oldest man recently died
:) 'one
+. !he "icro 7inance 6nstitutions ="76> differ from one
another in terms of(
6) Product oering
/) +oan repayment structure
8) Product oerings
9) +egal structure
:) "ll o above
,. 6ndian "icro 7inance 6nstitutes ="76> usually adopt
the %roup:based lendin% models which are of two types
1NA model and R;A model. 1NA means 1elf Nelp
Aroup and R;A means(
6) Hoint +iability Game
/) Hosh +iability Group
8) Hoint +oan Group
32
9) Hoint +iability Group
:) 'one
/. !o control hi%h rate interest rates coercive
collections and ille%al insurance practices by the "icro
7inance 6nstitutes Andhra 3radesh %overnment passed
Andhra 3radesh "icrofinance 6nstitutions =0e%ulation
of "oney ;endin%> Act in(
6) /068 /) /00: 8) /00;
9) /00= :) /066
12. 6n the &ot:7or:profit "icro 7inance 6nstitutes
which amon% the followin% are included(
6) Societies /) Public (rusts
8) 'on.proit companies 9) "ll o above
:) 'one
11. 'ne of the delivery channel for "icro 7inance is
1NA model. 1NA means(
6) Soar Celp Group
/) Sa%e Celp Group
8) Sel Cope Group
9) Store Celp Group
:) Sel Celp Group
12. 8o:operatives re%istered under state or &ational
Acts and "A81 come under "utual benefit "76s.
"A81 means(
6) Moral."ided &o.operative Societies
/) Mint."ided &o.operative Societies
8) Mutually."ided &o.operative Societies
9) Mutually."ided &o.ordinate Societies
:) 'one
13. &on:bankin% financial companies producer
companies and ;AB come under the cate%ory of 7or:
3rofit :"76s. ;AB means(
6) +oan "rea $an%s /) +egal "rea $an%s
8) +ocal "1is $an%s 9) +ocal "rea $an%s
:) 'one
1$. 1O1 "icrofinance ;td the only listed micro lender
in the country founded by(
6) Sudipa Sen /) M*$*'*Rao
8) Dunal Ghosh 9) !i%ram "%ula
:) 'one
1). Who launched an <6ndia "icrofinance 3latform< a
portal on microfinance activities across the country
with the assistance of World bank funds on 2, Rune
2213(
6) S$# /) #&#&# 8) S#)$#
9) E1im $an% :) '"$"R)
1*. 16?B6 related statements are %iven. 3ick the wron%
statement.
6) S#)$# means Small #ndustries )evelopment $an% o
#ndia
/) #t was established on "pril /5 6==0
8) #t is the principal inancial institution or the promotion5
inancing and development o industry in the small scale
sector
9) #ts head oice is in Cyderabad
:) 'one
1+. 8hairman of 16?B6 is(
6) S*D*Roy /) (*&*"* Ranganathan
8) Sushil Muhnot 9) 3*D*Sinha
:) Rahul Dhullar
1,. Which committee has recommended creation of a
separate cate%ory of &B78s operatin% in the
microfinance sector to be desi%nated as &B78:"76s
=&on:Bankin% 7inance 8ompany : "icro 7inance
6nstitutes>(
6) &* Ranga Ra?an /) &handra Se%har
8) E* C* Malegam 9) (arapore
:) R*D* Sundaram
1/. 0ecommendations of "ale%am committee on "icro
7inance 1ector do not include ...
6) M-# should not charge more than /9 A o its disbursed
loans*
/) Processing ee on the loan amount must not be more
than 6A*
8) margin o interest to be not more than /0 percent*
9) M-#s should lend to an individual borrower only as a
member o a H+G and should have the responsibility o
ensuring that the borrower is not a member o another H+G*
:) $an% advances to M-#s should continue to en?oy
@priority sector lending@ status*
33
22. 'n / 'ctober 2213 0B6 announced set up a
!echnical 8ommittee under the chairman ship
of ............ to e5amine the feasibility of encrypted 1"1:
based fund transfers.
6) "nand Sinha /) Raghu Ram Ra?an
8) 3r?ith Patel 9) Pandu Ranga
:) Sambamurthy
21. 1tate Bank of 6ndia first woman 8hair person is(
6) Shubhala%shmi Panse /) &handa Docchar
8) 'ainal +al Didwai 9) "rundhati $hattacharya
:) 'one
/2. 6n order to invite more forei%n e5chan%e the
%overnment of 6ndia intends to allow the banks to
offer ......... as declared on 32 1eptember 2213*
6) overburdened bonds /) roll chun% bonds
8) euro acilitation bonds 9) >uasi.sovereign bonds
:) 'one
/3. Which member of the world bank %roup launched
the 6ndian rupee denominated bond may be the first
step towards internationalization of the 6ndian
currency(
6) #$R) /) #)" 8) #-&
9) M#G" :) #M-
2$. 'n 3 'ctober 2213 884A approved the 0ashtriya
Bchchatar 1hiksha Abhiyan =0B1A> for
reformin% *********
6) Primary education /) Mid school education
8) (echnical education 9) )istance education
:) Cigher education
2). ?etails of current account deficit =8A?> %iven. 3ick
the wron% option.
6) &") o irst >uarter o /068.69 registered at 9*= per cent
o G)P*
/) Cigh imports o gold and oil largely led to a worsening
o the deicit*
8) 9*9 A &") registered in the corresponding R 6 o the
previous inancial year*
9) $y /069.6:5 &") will be reduced to 8*0A as per the
statement o -M in the $udget /068.69*
:) 'one
2*. 'n 1+ 1eptember 2213 the 8ustoms ?uty on
Articles of Rewellery and of Aoldsmiths< or
1ilversmiths< Wares revised from 12 S to ...
6) 82 A /) /9 A 8) /0A
9) 6<A :) 6:A
2+. 76B has be%un a probe into the transactions of
investors and owners of crisis:ridden &ational 1pot
45chan%e ;imited =&14;>. 76B means(
6) -inancial #ntelligence 3nit
/) -inancial #nsurance 3nit 8) -irst #ntelligence 3nit
9) -inancial #n?ect 3nit
:) 'one
,. &ational 1pot 45chan%e ;imited promoted by(
6) Rana Dapoor /) &handa Dochhar
8) Ra?a Promod 9) Hignesh Sha
:) 'one
2/. &ew class of 7orei%n 3ortfolio 6nvestor =736>
re%ulations %iven by 14B6 on ) 'ct 2213. ;ocate the
wron% option.
6) DE& IDnow Eour &lient) re>uirements and other
registration procedures would be much simpler or -P#s
compared to current practices*
/) SE$# grants permanent registration to them compare to
current practice o granting approvals or one year or ive
years*
8) "ll e1isting -##s I-oreign #nstitutional #nvestors) their
Sub "ccounts and R-# IRualiied -oreign #nvestors) will
be eventually merged into this new investor class to be
%nown as -P#s*
9) -P# not allowed rom 3S"*
:) -P#s would be allowed to invest across a host o the
capital mar%et segments5 including in shares5 debentures5
warrants5 mutual unds5 collective investment schemes5
derivatives5 treasury bills and government securities*
32. Who is the 8hairman of 8ompetition 8ommission of
6ndia(
6) D*Subramanyam /) )*Subba Rao
8) "sho% &hawla 9) 3*D*Sinha
:) Eogesh "garwal
31. Annual 3lenary "eetin%s of 6"7 and World Bank
on 11th and 12th 'ctober 2213 held at ........
34
6) Washington )*& /) Rome
8) +ondon 9) Paris
:) Manila
32. 11th 6ndia:A14A& summit be%an in *******
6) $runei /) #ndonesia
8) Hapan 9) Singapore
:) Philippines
1. !he World !rade 'r%anization =W!'> deals with
the %lobal rules of trade between nations. Who is the
?irector Aeneral of W!'(
a) Roberto "zevedo b) &hristine +egarde
c) Raghuram Ra?an d) ,liver Ralph Dahn
e) 'one o the above

2. 0B6 on 'ctober +th 2213 has reduced "ar%inal
1tandin% 7acility="17> rate from /.)S to /S to
improve li9uidity in the system. What is "17(
a) MS- rate is the rate at which ban%s lodge unds
overnight with R$# buying approved government
securities*
b) MS- rate is the rate at which ban%s borrow unds
overnight rom other ban%s against approved government
securities*
c) MS- rate is the rate at which ban%s borrow unds
overnight rom R$# against approved government
securities*
d) MS- rate is the minimum rate at which ban%s lend
to the borrowers*
e) 'one o the above

3. Between 222+:2, to 2212:13the value of 8ard
spendin% rose to 0s.1./+ ;akh 8rores. A raise in 8ards
spendin% indicates(
a) (ransormation to @&ashless Economy@
b) +ow inlation c) Raising incomes
d) -alling prices e) 'one o the above

$. What is &'! true with re%ard to <8arbon 8redit<(
a) #t is a tradable certiicate or permit*
b) #t represents the right o an #ndustry to emit certain
>uantity o &arbon )io1ide*
c) &arbon &redits mechanism was ormalized in
Dyoto Protocol*
d) &arbon &redits are currently traded on : e1changes
across the globe*
e) 'one o the above*

). Arundhati Bhattacharya is in news recently. 1he is
%oin% to be(
a) 6st woman )eputy Governor o R$#
b) 6st woman &hair Person o S$#
c) 6st woman )eputy &hairman o Planning
&ommission
d) 6st woman -inance Secretary to Govt* o #ndia
e) 'one o the above

*. &ational 1pot 45chan%e =&14;> is the news for
defaultin% payments to investors. Who is the founder
promoter of 7!(
a) Hignesh Shah b) Carshad Mehta
c) Detan Pare%h U d) " D (elgi
e) 'one o the above

+. 7ind the <odd man out< of the followin%(
a) Walmart U b) (esco
c) &arreour d) $ig $azar
e) #%ea

,. 'ne of the 3rimary functions of 6"7 is to provide
short term capital assistance to member countries
throu%h 1?0 =1pecial ?rawin% 0i%hts>. What is &'!
true about 1?0(
a) &urrency code o S)R is B)R
b) S)R is the 3nit o "ccount o #M-
c) "sian )evelopment $an% I")$) also uses S)R as
its &urrency
d) S)R can be e1changed only or 3S )ollar5 $ritish
Pound5 Euro 4 Hapanese Een
e) 'one o the above

/. "ain functions of "oney(
a) Medium o E1change b) 3nit o "ccount
c) Store o !alue d) ,nly @a@ and @b@ o the above
e) @a@5 @b@ 4 @c@ o the above

12. "-s EQU company has %ot an order to supply
"achinery to "-s AB8 8o of &i%eria. Who has to %et a
35
;etter of 8redit issued from a Bank(
a) MFs "$& since they are the importers
b) MFs BEG since they are the e1porters
c) $oth since they are the parties to the agreement
d) R$# since they regulate the -oreign (rade in #ndia
e) 'one o the above

11. What is <3ackin% 8redit<(
a) -inance e1tended to Pac%ing materials industry
b) -inance e1tended to an #mporter to pac% the goods
imported
c) -inance e1tended to Warehouses or %eeping the
goods pac%ages
d) -inance e1tended to an E1porter to meet the costs
o buying andF or ma%ing products to be e1ported
e) 'one o the above

12. What is &'! true with re%ard to 8urrency
8hests in 6ndia(
a) (hey are managed by dierent ban%s on behal o
R$#
b) )eposits in &urrency &hests are ta%en into account
or calculation o &RRI&ash Reserve Ratio)
c) Standard &hartered $an% a -oreign $an% also
maintains &urrency &hest
d) &oins are also stored in &urrency &hests
e) 'one o the above

13. 0ecently 3arliament has pass:ed 8ompanies Act
2213. What is &'! true with re%ard to some of the
features of the Act(
a) "n #ndividual can set up P,ne person Private +td
&ompanyP
b) "n independent )irector can hold 8 consecutive
terms o 8 years
c) +isted &ompanies must have at least 6F8rd
independent )irectors
d) Prescribed &ompanies must have at least 6 woman
)irector on the $oard
e) " Private +td &ompany can have a ma1imum o
/00 members

1$. What is <&et 6nterest "ar%in< of a Bank(
a) Margin o #nterest earned on (rading in Govt
Securities
b) )ierence between the $ase #nterest Rate and the
"verage +ending Rate
c) )ierence between the interest income and the
amount o interest paid out
d) )ierence between #nterest on (erm +oans and
#nterest on &ash &redits
e) 'one o the above

1). What is the World<s lar%est functionin% 'il
0efinery(
a) Reliance Reinery in Hamnagar5 Gu?arat
b) #,& Reinery in )igboi5 "ssam
c) CP&+ Mumbai Reinery
d) Paraguana Reinery5 !enezuela
e) E11on Mobil Reinery5 Singapore

1*. 6678; =6ndia 6nfrastructure 7inance 8o. ;td> is
wholly:owned Aovt. of 6ndia 8ompany. Who is selected
to take over as the 8hairman and "ana%in% ?irector(
a) & $ $have
b) S $ 'ayar
c) ( S !i?ayan
d) Eogesh "garwal
e) 'one o the above

1+. !ill 32th Rune 1/)) 1tate Bank of 6ndia=1B6> was
known as(
a) State $an% o $ritish #ndia
b) #mperial $an% o #ndia
c) #ndia &entral $an%
d) &entral $an% o $ritish #ndia
e) 'one o the above

1,. Where is the Asian ?evelopment Bank=A?B>
located(
a) Mumbai5 #ndia b) Ciroshima5 Hapan
c) Shanghai5 &hina d) Manila5 Philippines
e) Ha%arta5 #ndonesia

1/. 1tructured 7inancial "essa:%in% 1ystem =17"1>
is a secure messa%in% standard developed to serve as a
platform for intra:bank and inter:bank applications in
6ndia. Which of the followin% have interface with
17"1(
a) R(GSIReal (ime Gross Settlement)
b) 'egotiated )ealing System I')S)
c) Security Settlement System ISSS)
36
d) @a@ and @c@ o the above
e) @a@5 @b@ 4 @c@ o the above

22. Which 8ountry is the lar%est producer of !ea in
the world(
a) #ndia b) $razil
c) Peoples Republic o &hina d) Srilan%a
e) 'one o the above

21. Who is the 84' @ "? of !81=!ata 8onsultancy
1ervi:ces>(
a) &yrus Mistry
b) S Ramdorai
c) ' &handrase%haran
d) Ratan (ata
e) 'one o the above

22. Cualitative 8redit 8ontro is one of the methods
used by 0B6 to control credit. Which of the followin% is
&'! a Cualitative 8redit 8ontrol tool(
a) Moral Suasion b) Marginal Re>uirement
c) Rationing o &redit d) $an% Rate
e) @a@ 4 @d@ o the above

23. Who is the 8hairperson of 1$th 7inance
8ommission(
a) )r Eaga !enugopal Reddy
b) )r !i?ay + Del%ar c) )r & Rangara?an
d) )r )uvvuri Subbarao e) 'one o the above

2$. !he 12th 7ive Qear 3lan =2212:1+> is approved by
Bnion 8abinet on $th 'ctober 2212. !he aims of the
plan are(
a) <A average growth rate
b) Reduce Poverty by 60A during the Plan
c) -aster5 Sustainable and More inclusive Growth
d) "ll the 8 above
e) 'one o the above

2). Which 1tate is the lar%est producer of 8otton in
6ndia in the year 2212:13(
a) Gu?arat b) Maharashtra c) "ndhra
Pradesh d) Darnata%a e) Madhyapradesh
2*. Who sets up the Bench "ark 6nterest 0ate for
Aermany(
a) German &entral $an% b) )eutsche $undes $an%
c) European &entral $an%IE&$)
d) )eutsche $an% e) 'one o the above

2+. What is 6ndia<s Ape5 !a5 body(
a) &$)( b) G""R
c) #( )epartment d) R$#
e) 'one o the above

2,. 76886 is an Association of Business 'r%anizations
in 6ndia. Who is the 3resident of 76886(
a) Shi%ha Sharma b) 3sha (horat
c) 'aina +al Didwai d) #ndra 'ooyi
e) 'one o the above

2/. Banks in 6ndia are %overned by B0 Act 1/$/.
What does <B0< stands for(
a) $an%s Registration
b) $an%ing Re.organization
c) $an%ing Regulation
d) $an%ing Rights
e) 'one o the above

32. 6n 6ndia 1cheduled 8ommercial Banks are those
Banks included(
a) #n the /nd Schedule o R$# "ct 6=89
b) #n the /nd Schedule o $R "ct 6=9=
c) #n the /nd Schedule o '# "ct 6<<6
d) #n the /nd Schedule o &ompanies "ct 6=:2
e) 'one o the above


Answers.
6*a /*c 8*a 9*e :*b 2*a ;*d <*e
=*e 60*a 66*d 6/*e 68*b 69* c 6:*a 62*b 6;*b
6<*d 6=*e /0*c /6*c //*c /8*a /9*d /:*a /2*c
/;*a /<*c /=*c 80*a
1. 3eriodically 0eserve Bank of 6ndia =0B6> reviews a
few 1;0 norms. 1;0 stands for(
a) Statutory +i>uidity Ratio
b) Statutory +i>uidity Rate
c) Statutory +i>uidity Return
d) Statutory +i>uidity Repo
e) 'one o the above
2. 6n the recent months 6ndian 0upee depreciated
37
heavily a%ainst B1 ?ollar. 0upee depreciation means(
a) !alue o Rupee decreasing against a bas%et o
currencies
b) +ess number o Rupees per 3S )ollar
c) More number o Rupees per 3S )ollar
d) +ess number o )ollars per Rupee
e) 'one o the above
3. 6n 6ndia 8ommodities "arket is re%ulated by(
a) -orward Mar%et &ommission
b) -orward Mar%et &ommittee
c) -orward Mar%et &orporation
d) -orward Mar%et &ouncil
e) 'one o the above
$. 7ood 1ecurity Bill is recently passed by 3arliament.
What does the 7ood 1ecurity Bill intend to achieve(
a) "t least 8%g o ood grains per person per month to
be given to general category households5 at prices not
e1ceeding :0A o Minimum Support Price*
b) 3p to ;:A o the rural population and up to :0A o
urban population are to be covered under (argeted Public
)istribution System*
c) &hildren aged si1 months to 69 years would get
ta%e.home ration or hot coo%ed ood*
d) (he oldest adult woman in each house would be
considered the head o that household when issuing the
ration card*
e) "ll o the above
). 763B stands for(
a) -oreign #nvestment and Production $oard
b) -oreign #nvestment and Promotion $oard
c) -oreign #nvestment and Promotion $ureau
d) -oreign #nvestment and Protection $oard
e) 'one o the above
*. 6n 6ndia 8apital "arkets are re%ulated by(
a) Securities and E1change $oard o #ndia
b) Reserve $an% o #ndia
c) State $an% o #ndia
d) #nternational Monetary -und
e) 'one o the above
+. 0A&? is the currency of (
a) &hina b) Hapan
c) 'orth Dorea d) South "rica
e) 'one o the above
,. 0ecently 0B6 took several steps to control 0upee
depreciation. ?ue to 0upee depreciation(
a) E1ports become costlier
b) #mports become costlier
c) #mports become cheaper
d) $oth Ia)4Ic)
e) 'one o the above
/. 6ndia<s A?3 %rowth is slowin% down. A?3 means(
a) Gross )omestic Product
b) Gross )omestic Poverty
c) Gross )emand Production
d) Gross )emand Product
e) 'one o the above
12. 8hakravarthy 0an%ara#an is(
a) Governor o Reserve $an% o #ndia
b) )irector o Securities and E1change $oard o #ndia
c) &hairman o Prime Minister Economic "dvisory
&ouncil
d) &hairman o State $an% o #ndia
e) 'one o the above
11. 6nternational "onetary 7und =6"7> works to
foster %lobal monetary cooperation promote hi%h
employment and sustainable economic %rowth. Who is
the current mana%in% director of 6"7(
a) Daushi% $asu b) )r* E ! Reddy
c) Him Eong Dim d) &hristine +agarde
e) 'one o the above
12. Air:Asia 6ndia is the new proposed Airline in
6ndia. 6t tied up with the followin% 6ndustrial %roup for
its launch in 6ndia(
a) ("("s b) Reliance group
c) "ditya $irla group d) #nosys
e) 'one o the above
13. 0a%huram 0a#an became the 23rd 0B6 Aovernor
on )th 1eptember 2213. Whom did he succeed(
a) )r E ! Reddy b) ) Subba Rao
c) $imal Halan d) )r Rangara?an
e) 'one
38
1$. 60?A head9uarters located in which 8ity(
a) Mumbai b) $angalore
c) Cyderabad d) &hennai
e) 'one o the above
1). Arundathi Battacharya was recently in the news.
1he is(
a) Managing )irector o S$#
b) &hairman o Pun?ab 'ational $an%
c) &E, o #&#&# $an%
d) &E, o "1is $an%
e) 'one o the above
1*. 6ndia<s 8A? was $.,S of A?3 in 2212:13. 8A?
means(
a) &urrent "mount )eicit
b) &urrent "ccount )eicit
c) &urrent "sst )ebt
d) &ommon "ccount )eicit
e) 'one o the above
1+. Which of the followin% is &'! matched(
a) & $ $have K SE$# b) Rangara?an . Planning
&ommission c) Raghuram Ra?an . R$#
d) ( S !i?ayan K #R)" e) Eogesh "garwal .
P-R)"
1,. Who is the 8hairman of the 3lannin%
8ommission(
a) P* &hidambaram b) Monte%singh "hluwalia
c) Raghuram Ra?an d) Manmohan Singh
e) 'one o the above
1/. As per findin%s of the recent 0a%huram 0a#an
8ommittee report which 1tate is the most developed(
a) Derala b) Goa c) Gu?arat
d) (amilnadu e) 'one o the above
22. As per the insurance bill 2213 7orei%n 6nvestors
can hold up to(
a) :6A o the capital in an #ndian insurance company
b) 8=A o the capital in an #ndian insurance company
c) 9=A o the capital in an #ndian insurance company
d) /=A o the capital in an #ndian insurance company
e) 'one o the above
21. 1tatutory li9uidity ratio=1;0> refers to the
amount that the commercial banks re9uire to maintain
with 0B6.
What are the permitted 1;0 investments(
a) ,nly Gold b) Gold or Govt approved Securities
c) ,nly Govt approved Securities
d) ,nly &ash e) 'one o the above
22. ?irect !a5es 8ode =?!8> is intended to be
introduced in the monsoon session of 3arliament. ?!8
seeks to replace(
a) #ndian &ontract "ct b) #ndirect (a1 "ct
c) #ncome.(a1 "ct d) $an%ing Regulation "ct
e) 'one o the above
23. 6n Ruly 2213 0B6 notified that &on:8!1 8he9ues
are valid till the end of year 2213. 8!1 means(
a) &he>ue (runcation System
b) &he>ue (ransaction System
c) &he>ue (ransmission Service
d) &he>ue (ransport Service
e) 'one o the above
2$. 6n Ruly 2213 14B6 Act was amended to curb
3onzi schemes. 3onzi 1cheme means(
a) 'ame o a Mutual -und Scheme to earn higher
returns
b) &ollective investment Schemes loated by ly by
night operators
c) 'ame o a $an% )eposit Product
d) 'ame o a Cealth #nsurance scheme
e) 'one o the above
2). !he minimum rate of 6nterest char%ed by a Bank
from 8ustomers on the loans is(
a) $ase Rate b) $an% Rate
c) Prime Rate d) Prime +ending Rate
e) 'one o the above
2*. Which of the followin% is &'! true with re%ard to
78&0 Accounts(
a) 'R#s can open the "ccount
b) &an be opened in @Permitted &urrency@ only
39
c) Minimum (erm is 6 year
d) Ma1imum (erm : years
e) 'one o the above
2+. 043' rate means(
a) Rate at which the R$# will borrow rom the ban%s
b) Rate at which ban%s will borrow rom other ban%s
c) Rate at which the R$# lends to ban%s
d) Rate at which ban%s lend to customers
e) 'one o the above
/<* -iscal )eicit Reers toS
a) (he dierence between the government@s total
e1penditure and its total receipts Iincluding borrowing)
b) (he dierence between the government@s total
e1penditure and its total receipts Ie1cluding borrowing)
c) (he dierence between the government@s (a1
collections and Salary payments
d) (he dierence between the government@s (a1
collections and government@s $orrowings
e) 'one o the above
2/. T?AET is the stock market in(
a) Germany b) 3S"
c) -rance d) Cong%ong
e) 'one o the above
32. After retirement 0atan !ata was made the
8hairman 4meritus of !ata 1ons. Who succeeded
0atan !ata as 8hairman of !ata 1ons(
a) &yrus Mistry b) 'iira Radia
c) Mu%esh "mbani d) 'andan 'ile%ani
e) 'one o the above
31. Qellow "etal refers to(
a) &opper b) Silver c) Platinum
d) Gold e) 'one o the above
32. Who is the 8hairman of the committee set up to
scrutinize applications for new Bank licenses(
a) 3sha (horat b) $imal Halan
c) & $ $have d) S )amodaran
e) 'one o the above
33. Who is the World Bank 3resident(
a) &hristine +egrade b) Him Eong Dim
c) Raghuram Ra?an d) Monte%singh "hluwalia
e) 'one o the above
3$. Ben Bernanke is the 8hairman of 7ederal 0eserve.
What is 7ederal 0eserve(
a) &entral $an% o 3D
b) -inancial wing o the World $an%
c) &entral $an% o 3S"
d) European 3nion &entral $an%
e) 'one o the above
Answers.
6) a7 /) c7 8) a7 9) e7 :) b7 2) a7 ;) d7 <) b7 =) a7 60) c7
66) d7 6/) a7 68) b7 69) c7 6:) a7 62) b7 6;) b7 6<) d7 6=) b7
/0) c7 /6) b7 //) c7 /8) a7 /9) b7 /:) a7 /2) e7 /;) c7 /<) b7
/=) a7 80) a7 86) d7 8/) b7 88) b7 89) c
Uero 8oupon Bond. " bond with no coupon that is sold at
a deep discount rom par value*
1. !he first 6ndian bank to open a branch outside
6ndia in ;ondon in 1/$*(
a) S$# b) P'$ c) $,$ d) &anara $an%
e) $,#

2. 8oins are minted at (
a) Mumbai b) Cyderabad c) 'oida
d) Dol%atta e) "ll o these

3. Which of the followin% is not a function of
commercial bank(
a) Providing pro?ect inance
b) Selling mutual unds
c) )eciding policy rates li%e &RR5 Repo ratesFS+R
etc*
d) Settlement o payments on behal o the customers
e) Providing services such as loc%er acilities5
remittances etc**

$. !he &ew 8apital Ade9uacy 7rame work
prescribed for the banks is commonly known as(
a) DE& norms b) &redit Policy
c) $asel accord d) -iscal Policy
e) 'one o these

). 45pand the term 70B"(
a) -inancial Responsibility and $usiness management
40
b) -iscal Responsibility and $usiness management
c) -inancial Responsibility and $udget Management
d) -iscal Responsibility and $udget Management
e) -ormal Responsibility and $usiness Management

*. What is an 6ndian ?epository 0eceipt(
a) " deposit account with a Public Sector $an%
b) " depository account with any o depositories
c) "n instrument in the orm o depository receipt
created by an #ndian depository against underlying e>uity
shares o the issuing company
d) "n instrument in the orm o deposit receipt issued by
#ndian depositories
e) 'one o these

+. ;and ?evelopment Banks form a part of the(
a) &ommercial $an%s
b) #ndustrial )evelopment $an% o #ndia
c) -ood &orporation o #ndia
d) &o.operative &redit Structure
e) 'one o these

,. Which of the followin% cannot be called as a value
Added 1ervice offered by bank(
a) Special "ccounts or poor sections o society
b) "ccident #nsurance &over
c) #nstant credit o outstations che>ues
d) ree che>ue boo%s
e) "ll o these

/. !he minimum number of women re9uired for
formation of women %roups under ?evelopment of
women and children in 0ural Areas 3ro%ramme is(
a) /0 b) 6: c) 60 d) 0:
e) 'one o these

12. What is the full form of <76&'< a term we see
fre9uently in financial newspapers(
a) -inancial #nvestment 'etwor% and ,perations
b) -armer@s #nvestment in 'ational ,rganization
c) -armers #nclusion 'ews and ,perations
d) -inancial #nclusion 'etwor% and ,perations
e) 'one o these

11. With an aim to provide better services to the debit
card holders the 0eserve Bank of 6ndia =0B6> has
directed all commercial and public sector banks to
introduce new Automated !eller "achines =A!"> that
can deliver lower denomination notes such as(
a) Rs 60 b) /0 c) :0*
d) 'one o the above
e) "ll the above

12. Which of the followin% banks is limited to the
needs of a%riculture and rural finance(
a) R$# b) S$# c) #-&
d) '"$"R)
e) "1is $an%

13. 'pen:market operations of 0eserve Bank 'f
6ndia refer to(
a) (rading in securities b) "uctioning
c) (ransaction in gold d) "ll o these
e) 'one o these

1$. Which of the followin% has introduced a new tool
named ?ata Warehousin% and Business 6ntelli%ence
1ystem for speedy analysis of data and identifica:tion of
violations(
a) #R)" b) S$# c) R$#
d) (R"# e) 'one o these

1). !he 0eserve Bank hiked the limit for forei%n
investment in Asset 0econstruction 8ompanies =A08s>
from the earlier cap of $/ percent to(
a) ;9 A b) 9; A c) :; A
d) ;/ A e) 'one o the above

1*. Which of the followin% is &'! the part of the
scheduled bankin% structure in india(
a) Money +enders b) Public Sector $an%s
c) Private Sector $an%s d) Regional Rural $an%s
e) State &o.operative $an%s

1+. Who is the chairman of the committee constituted
by 0B6 to study issues and concerns in the "icro
7inance 6nstitutions sectorS
a) E*C* Malegam b) )r D*&*&ha%raborty
c) &*Rangara?an d) M*)amodaran
e) Smt 3sha (horat

1,. An instrument of 9ualitative credit control in
41
india is(
a) ,pen mar%et operations
b) &redit rationing c) &hange in reverse ratio
d) $an% rate policy e) 'one o these

1/. Which of the followin% is the full form of the term
1;0 as used in the bankin% sector(
a) Social +ending Ratio b) Statutory +i>uidity Ratio
c) Scheduled +i>uidity Rate
d) Separate +ending Rate e) 'one o these
22. World Bank Nead9uarters is in(
a) #ndia b) 3S" c) Switzerland
d) Hapan e) 3D

Answers
6) e7 /) e7 8) c79) c7 :) d7 2) c7 ;) d7 <) d7 =) c7
60) a7 66) e7 6/) d7 68) a7 69) b7 6:) a7 62) a7 6;) a7 6<)
b7 6=) bO /0) b*
0B6 allowed the &on:0esident 6nvestors to buy 1hares
under 7?6 1cheme
(he Reserve $an% o #ndia on 2 September /068 allowed
the 'on.Resident #nvestors including 'R#s to purchase
shares o #ndian entities 3nder -)# Scheme* (he
investment can be made as per the mentioned conditions*
R$# has allowed the 'R#s to ma%e investment under the
-)# scheme only on the listed entities5 on recognized stoc%
e1changes*
(he Reserve $an% o #ndia has decided to include the non.
residents5 including the 'R#s to ac>uire the shares o
domestic companies listed under -)# scheme5 on the stoc%
e1changes through a registered bro%er5 i the investor has
already ac>uired and continues to hold control in
accordance with SE$#5 Substantial (a%eover &ode*
R$# has also cleared that the inward remittance using the
normal ban%ing channels can be used or payment o the
transer o shares to non.residents conse>uent to purchase*
(he debit to the 'RE pr -&'R account o a person with
authorized dealer or ban% can also be considered or
ma%ing the payment o the transerred shares* Escrow
"ccounts Inon.interest bearing) maintained in #ndia can
also be used to debit the payment* (he prices o the
transer o the shares or the non.resident shareholders
would be made in accordance to the pricing guidelines
mentioned under5 -EM"*
(ill now5 the -##s I-oreign #nstitutional #nvestor)5 R-#s
IRualiied -oreign #nvestors) and 'R#s were eligible to
invest and ac>uire the shares on the recognized stoc%
e1changes o #ndia in compliance with the -EM" I-oreign
E1change Management "ct) regulations* $ut the 'R#s
were not allowed to ac>uire shares on e1change Ibourses)
under the -)# Scheme*
0B6 0evised Aold 6mport &orms to 8ontain 8A?
42
(o contain the current account deicit5 R$# announced
some measures to curb the demand or gold in the month o
September /068 considering one o the ma?or reason or
widening the current account deicit*
Supplies o the metal to special economic zones ISEGs)
will not be counted as e1ports to >ualiy or urther
purchases rom overseas* "s per the e1isting norms5 /0
percent o every lot o imported gold has to be made
e1clusively available or the purpose o e1ports*
Gold made available by a nominated agency to units in the
SEG and e1port oriented units5 Premier and Star trading
houses shall not >ualiy as supply o gold to the
e1porters*R$# announced that entities and units in SEGs
and Eo3s5 Premier and Star trading houses are permitted to
import gold e1clusively or the purpose o e1ports*
(he government aims to bring it down to 3S) ;0 billion in
/068.69 iscal rom << billion 3S )ollar in /06/.68* Gold
imports in "pril.Huly /068 rose <; percent to 8<8 tonnes*
Tuesday, 3 September 2013
0B6 0eleased the ?iscussion 3aper on JBankin%
1tructure in 6ndia L !he Way 7orwardK
(he Reserve $an% o #ndia on /; "ugust /068 released the
)iscussion Paper on T$an%ing Structure in #ndia K (he
Way -orwardM*
3rimary 7eatures of the ?iscussion 3aper on JBankin%
1tructure in 6ndia L !he Way 7orwardK
V (he paper ocuses on certain building bloc%s or the
reorientation o the ban%ing structure with a view to
addressing various issues such as enhancing competition5
inancing higher growth5 providing specialised services and
urthering inancial inclusion*
V (he paper also emphasised the need to address the
concerns arising out o such changes with a view to
managing the trade o or ensuring inancial stability*
V (he paper discussed that the overall thrust o the
reorientation is to impart dynamism and le1ibility to the
evolving ban%ing structure5 while ensuring that the
structure remains resilient and promotes inancial stability*
8rucial issues covered by the ?iscussion 3aper on
JBankin% 1tructure in 6ndia L !he Way 7orwardK
V Small banks vs. large banks: (he paper discussed how
small local ban%s play an important role in the supply o
credit to small enterprises and agriculture and ban%ing
services in unban%ed and under.ban%ed regions in #ndia*
Cowever5 while permitting large number o small ban%s5
there are certain issues which need to be addressed suitably
and these issues include their size5 numbers5 capital
re>uirements5 e1posure norms5 regulatory prescriptions5
corporate governance and resolution*
V Universal Banking: (he paper discussed that the
universal ban%ing model remains the dominant and
preerred model in most o the post crisis world because o
the ailure o many investment ban%s during the crisis* #n
this ban%ing model5 the -inancial Colding &ompany I-C&)
structure oers a range o beneits and thereore becomes a
preerred model* (he paper discussed that there is a need o
promoting investment ban%s as well as investment ban%ing
activities*
V Continuous ut!orisation: (he R$#5 in its paper
discussed that there is a case or reviewing the current
TStop and GoM licensing policy and consider adopting a
continuous authorisation policy5 as continuous
authorisation %eeps the competitive pressure on the e1isting
ban%s and also does not strain the ban%ing system as the
bloc% licensing may do* (he entry norms should however
be stringent in order to encourage the entry o only well.
>ualiied entities*
V Conversion o" UCBs into #ommer#ial banks: (he R$# in
its paper discussed the possibilities o converting the 3&$s
to commercial ban%s or small ban%s in order to help them
reach the regions that are characterised by poor ban%ing
outreach*
V Consolidation: (he R$# suggested5 in its paper that
ta%ing into account the pros and cons o consolidation5 it
has to be ta%en into consideration that while consolidation
o commercial ban%s with established synergies and on the
basis o voluntary initiatives is welcome5 it cannot be
imposed on ban%s* " measured approach is to be made
both on consolidation and global presence even i attaining
global size is not imminent*
V $resen#e o" %oreign Banks in &ndia: (he importance o
the oreign ban%s in #ndia has increased tremendously ater
the crisis* )omestic incorporation o these ban%s through
43
the route o subsidiarisation has gained momentum*
V $resen#e o" &ndian Banks at &nternational
'o#ations: (he R$# suggested local incorporation by large
ban%s either individually or in ?oint venture mode with
other ban%s or with overseas ban%s5 at the international
locations* (his will enable the large #ndian ban%s to engage
in a much wider range o activities and have greater
potential or growth* Eventually5 this may acilitate ban%s
increasing their global reach*
V (overnment )*ners!ip: (he &entral $an% suggested
that optimal ownership mi1 in the ban%ing sector is
re>uired to promote a balance between eiciency5 e>uity
and inancial stability* (he Government o #ndia may
consider options rom menu o choices available such as
issue o non.voting e>uity shares or dierential voting
e>uity shares5 adopting -C& structure or diluting sta%e in
PS$s*
V +eposit &nsuran#e and resolution: (he R$#5 in its paper
discussed that the e1istence o an eective resolution
regime is essential or any type o ban%ing structure #ndia
may pursue* (he -S$ %ey attributes could be the guiding
principles or setting up a resolution ramewor% in #ndia*
V &ndi#ative reorientation o" t!e banking stru#ture: (he
R$# suggested that the reoriented ban%ing structure would
comprise our tiers* (he irst tier may consist o three or
our large #ndian ban%s with domestic and international
presence along with branches o oreign ban%s in #ndia* (he
second tier is li%ely to comprise several mid.sized ban%ing
institutions including niche ban%s with economy.wide
presence* (he third tier may encompass old private sector
ban%s5 Regional Rural $an%s5 and multi state 3rban
&ooperative $an%s* (he ourth tier may embrace many
small privately owned local ban%s and cooperative ban%s*
!he need of ?iscussion 3apers by the 0eserve Bank of
6ndia
(he need o reviewing the ban%ing systems has been ta%en
up by various ?urisdictions5 primarily ater the global
meltdown* (he motive o current e1ercise in reviewing the
ban%ing structure in #ndia is to put orth various options to
enable the ban%ing system to cater to the needs o a
growing and increasingly globalising economy*
!arious studies have been underta%en in order to e1amine
whether the nature o the ban%ing structure matters or the
economic growth o a country*
#n the light o all this5 the Reserve $an% o #ndia issued
guidelines or licensing o new ban%s in the private sector
on // -ebruary /068* #n those guidelines5 it was stated that
there was a need or an e1plicit policy on ban%ing structure
in #ndia5 %eeping in view the recommendations o the
'arasimham &ommittee5 Raghuram Ra?an &ommittee and
other viewpoints*
1. Nabiba 1arobi recently conferred with....
6) $harat Ratna /) 'oble "ward or Peace
8) Ramon Magsaysay "ward 9) (empleton Prize
:) 'one
2. 7irst full pled%ed le%islation to allow the formation of
8o:operative 1ocieties is .......
6) &o.operative &redit Societies "ct5 6=09
/) &o.operative &redit Societies "ct5 6=6/
8) &o.operative &redit Societies "ct5 6=66
9) &o.operative &redit Societies "ct5 6=;6 :) 'one
3. !he first Act to pass to pave the establishment of 8o:
operative banks :
6) &o.operative &redit Societies "ct5 6=//
/) &o.operative &redit Societies "ct5 6=/9
8) &o.operative &redit Societies "ct5 6=;/
9) &o.operative &redit Societies "ct5 6=:6
:) &o.operative &redit Societies "ct5 6=6/
$. Which committee was appointed in 1/$$ to %ive
recommendations to improve co:operative movement(
6) Cilton.young/) Radha%rishnan
8) Mac+agan 9) Rodgers :) 'one
). Which sector is the ma#or beneficiary of 8ooperative
bankin% system till 1/*/(
6) Education /) Service 8) "griculture
9) E1port :) #ndustrial
*. 6ndian 8o:operative Bank system is ........
6) 3nicameral /) Semi -ederal 8) +ess -ederal
9) -ederal :) "utocrat
+. 'n 13 April 2213 0B6 decided to cancel the licenses
of 2* loss:makin% co:operative banks as they %ot losses.
44
"a#ority of them are in .....
6) "P /) MP 8) Darnata%a 9) Ra?asthan :) 3P
,. ......... is the ape5 of the three:tier co:operative
structure in 6ndia.
6) )istrict &entral &o.operative ban%s
/) 3nion &o.operative ban%s
8) )istrict &o.operative ban%s
9) State &o.operative ban%s
:) 'one
/. Which bank finance coordinate and control the
workin% of ?istrict 8entral 8o:operative Banks in the
states(
6) 'ational &o.operative $an%
/) Primary &o.operative $an%
8) State &o.operative $an%
9) +ower )evelopment $an%
:) 'one
12. 1tate 8o:operative Banks =18B> usually lend .......
6) )istrict &entral &o.operative $an%s
/) Primary &o.operative ban%s
8) to individuals in e1ceptional cases
9) "ll o above
:) 'one
11. 8apital of 1tate 8o:operative Banks =18B>
mobilized from ........
6) Members o )istrict &entral &o.operative $an%s
/) Members o Primary &ooperative ban%s
8) 6 4 / 9) ,nly I6) :) 'one
12. !he e5ternal lendin% a%encies to 1tate 8ooperative
Banks =18B> are ......
6) '"$"R) /) )evelopment $an%s
8) State Government 9) -inancial institutes
:) "ll o above
13. ........ is the intermediate run% in the threetier 8o:
operative 8redit structure.
6) Primary &o.operative $an%s
/) State &o.operative $an%s
8) 'ational &o.operative $an%s
9) )istrict &entral &o.operative $an%s :) 'one
1$. !he funds of ?istrict 8entral 8o:operative Banks
arisen from ..........
6) '"$"R) lending /) State government
8) "iliated &o.operative societies
9) -unds rom State &o.operative $an%s
:) "ll o above
1). Aross level of arms of the short term cooperative
credit structure is ........
6) )istrict &entral &o.operative ban%s
/) Primary "gricultural &redit Society
8) State &o.operative $an%s
9) 'ational &o.operative $an%s :) 'one
1*. !he functions of 3rimary A%ricultural 8redit
1ociety is .......
6) lending /) mortgage 8) pledge
9) accepting deposits :) "ll o above
1+. 3rimary Brban 8o:operative banks established with
the aim of %ivin% deliverin% bankin% services in ....
areas.
6) 3rban /) Rural 8) Metro
9) !illages :) 'one
1,. By which date the Brban 8o:operative banks must
implement 8B1 facility in all its branches as per the
order of 0B6 on 13 "arch 2213(
6) 86 ,ctober /068 /) 86 )ecember /068
8) 86 Hanuary /069 9) 86 "ugust /068
:) 'one
1/. !he recent actions- orders of 0B6 to control 8o:
operative banks %iven. 3ick the correct one.
6) &ustomers o Pune.based Rupee &ooperative $an%
restricted by limiting the amount o money that depositors
can withdraw up to Rs*6000 only* #t is pune based ban%*
/) ,n : March /0685 R$# as%ed 3rban &ooperative $an%s
I3&$s) to ta%e necessary steps to ensure smooth transition
to new international accounting norms #-RS rom "pril
/069*
8) "manath &o.operative $an% can conduct a inancial
transaction o not more than Rs*65000 per account a day as
per the directions o R$# on ; "pril /068* #t is Darnata%a
based ban%*
9) ,n < Hanuary /0685 R$# notiied that all co.operative
45
ban%s should not issued cobranded "(M cards without
approval o R$#*
:) "ll o above
22. 3rimary Brban 8o:operative Banks norms reviewed
on the recommendations of ....... committee.
6) D*Madhava Rao /) '*+a1aman Sinha
8) !edanarayana 9) Sacchindananda
:) 'one
21. 3robe a%ainst the chairman and directors of
Aurusiddheshwar Brban 8o:operative Bank started on
1/th Ruly 2213. 6t is in ...
6) Cublli /) Cyderabad 8) Pune
9) 'ew )elhi :) +uc%now
22. Which is 6ndia<s lar%est co:operative bank in 6ndia
lookin% to ac9uire the 3une:based 0upee 8o:operative
Bank(
6) Mahesh &o.operative ban% /) Mandavi &o.operative
ban% 8) Saraswat &o.operative ban%
9) +uc%now &o.operative ban% :) 'one
23. 6n an effort to defend rupee the Bnion %overnment
proposed to hike in the forei%n investment limit in
%overnment debt by .....
6) W 2 billion /) W < billion 8) W = billion
9) W : billion :) W60 billion
2$. Who heads the inter:ministerial panel has su%%ested
hi%her ta5es for non:essential imports to curb the
8urrent Account ?eficit =8A?>(
6) "nil Goswamy /) &*Ranga Ra?an
8) Ra?at $hargava 9) "nand Sharma
:) 'one
2). 'n 22 Ruly 2213 the 3arliamentary 8ommittee on
7inance submitted finalized its Aoods and 1ervices !a5
0eport. 6t is headed by ......
6) Murali Manohar Hoshi /) !en%aiah 'aidu
8) Raghuram Govinda Ra?an 9) "ravind Mayaram
:) Eashwant Sinha
2*. !o settle inter:state water disputes prevent flood
and pollution on 2$ Rune 2213 the Bnion %overnment
released a ?raft 0iver Basin "ana%ement bill which
aims to set up how many river basin authorities(
6) 60 /) /9 8 ) : 9) 6< :) 6/
2+. 7or the transformation of barren land in to
cultivatin% land which state launched Bhumi sena
scheme on , Au%ust 2213(
6) 3P /) "P 8) MP 9) Goa :) Hammu and Dashmir
2,. ?ou%las 4n%elbart died recently. Ne invented ********
6) RWER(E %eyboard
/) 3niversal Serial $us I3S$) 8) &ompact )isc
9) &omputer Mouse :) 'one
2/. As per the 2213 Alobal 3eace 6nde5 published by the
6nstitute for 4conomics and 3eace the top most
peaceful countries of the world are ...... (
6) #celand5 )enmar% and 'ew Gealand
/) 3S"5 3D and "ustralia
8) Hapan5 Switzerland and -inland
9) #ndia5 &hina and Me1ico :) 'one
32. 6ndian Runior Women Nockey team won its first
ever Bronze medal on $ Au%ust 2213 in Nockey Runior
World 8up held in .........
6) #ndia /) -rance 8) Hapan
9) Germany :) "ustralia
31. B886 stands for ........
6) $oard o &ric%et &ontrol o #ndia
/) $oard o &ontrol or &ric%et in #ndia
8) $oard o &entral &ric%et in #ndia
9) $oard o &ric%et &ommission in #ndia
:) 'one
32. 3arupalli Oashyap is a........
6) $adminton player /) &hess player
8) Member o Ra?yasabha
9) Mountaineer :) 'one
33. 7rom ) 1eptember 2213 the A:22 heads of
%overnment summit to be held in ........
6) Russia /) 3S"8) 3D
9) #ndia :) "ustralia
3$. <An Bncertain Alory. 6ndia and its 8ontradictions<
co:authored by Rean ?reze and ........
46
6) "martya Sen /) Subba Rao
8) Manmohan Singh 9) "bdul Dalam
:) 'one
3). Oalin%a prize will be %iven for the ......
6) Popularization o Science /) &ric%et
8) Popularization o internet 9) "rchitecture models
:) 'one
3*. 6nformal method of borrowin% is familiar from .......
6) Regional Rural $an%s /) Public Sector $an%s
8) Private Sector $an%s 9) Money lenders
:) '"$"R)
3+. 1tate Bank of 3akistan is the central bank of
3akistan. 6ts head9uarters is in .......
6) #slamabad /) Cyderabad 8) Sind 9) Darachi
:) "bbotabad
A&1W401.
6.85 /.65 8.:5 9.85 :.85 2.95 ;.:5 <.95 =.85 60.9
66.86/.:5 68.95 69.:5 6:./5 62.:5 6;.65 6<./5 6=.:5 /0.6
/6.65 //.85 /8.95 /9.85 /:.:5 /2.:5 /;.65 /<.95 /=.65 80.9
86./5 8/.65 88.65 89.65 8:.65 82.95 8;.9
1afefuards in &ew Bankin% ;icence &orms
Reserve $an% o #ndia IR$#) issued guidelines or setting
up new ban%s in the private sector vide Press Release dated
//*0/*/068* (he last date or receipt o applications was
06*0;*/068* #n all5 R$# has received /2 Itwenty si1)
applications*
"t the irst stage5 the applications will be screened by R$#
to ensure prima acie eligibility o the applicants5 including
the assessment o Tit and properM status o applicants*
(hereater5 the applications will be reerred to a Cigh +evel
"dvisory &ommittee to be set up by R$#* #n view o the
processes involved5 it is e1pected to issue Tin.principleM
approvals or new ban%s by the irst >uarter o /069*
(he saeguards and prudential regulations which have been
put in place in the guidelines or the new ban%5 the parent
'on.,perative -inancial Colding &ompany I',-C&) and
the consolidated ban% to serve as ade>uate saeguards to
deal with conlict o interest situations5 inter.alia5 include
Tit and properM criteria7 corporate structure o the 'on.
,perative -inancial Colding &ompany I',-C&)7 no
e1posure to the promoter group by ban%5 ',-C& and other
inancial sector entity under the ',-C& and7 corporate
governance o ',-C& and stipulation o ma?ority o
independent directors on the $oard o the $an%*
6nvestment of Banks in "oney ;aunderin%
(he contravention o any o the directions and instructions
issued by Reserve $an% o #ndia IR$#) under the $an%ing
Regulation "ct5 6=9= is an oence punishable under sub.
section I9) o Section 92 o the $an%ing Regulation "ct* #n
terms o sub.section I6) o Section 9;" o the $an%ing
Regulation "ct5 6=9=5 i a contravention or deault o the
nature reerred to in sub.section I9) o Section 92 is made
by a ban%5 the Reserve $an% may5 inter.alia5 impose on
such ban%5 a penalty not e1ceeding one crore rupees or
each o such contravention and a urther penalty which may
e1tend to one la%h rupees or every day during which the
contravention or deault continues*
(he monetary penalties have been imposed on ban%s in
e1ercise o powers vested in the R$# under the provisions
o Section 9;I")I6)Ic) read with Section 92I9)Ii) o the
$an%ing Regulation "ct5 6=9=*
(he ines and monetary penalties under section 92 and 9;"
o the $an%ing Regulation "ct5 6=9= respectively were
substantially increased through the $an%ing +aws
I"mendment "ct5 /06/ which was brought into orce in
Hanuary5 /068* (he ob?ective o the amendments was to
establish an eective and dissuasive penalty regime or
violations o the provisions o the $an%ing Regulation "ct5
6=9=*
#n view o the recent amendment to strengthen the
regulatory and supervisory powers o R$# by rationalising
the ine and penalty regime or violations under the
$an%ing Regulation "ct5 6=9=5 there is no proposal to
urther rationalise the ine and penalty regime under the
$an%ing Regulation "ct5 6=9=*
47
,ednesday, 31 -uly 2013
Qes Bank became the 7irst ;ender in 6ndia to hike
?eposit 0ates
Ees $an% became the irst lender to hi%e lending and
deposit rates* ,thers may ollow as the R$# move has
tightened li>uidity in the mar%ets* Ees $an% said it would
hi%e its deposit rates by 0*/: percent to 0*: percent in select
tenors eective rom 6"ugust /068* Ees $an% too% this
step ollowing the R$#Ms decision to %eep %ey policy rates
unchanged and cut growth orecast*
(his provides an opportunity or retail depositors to loc% in
higher rates on term deposits* (he ban% has also decided to
hi%e its base rate by a >uarter percent to 60*;: percent
eective rom (hursday* (his will ma%e lending by the
ban% costlier*
#n the irst >uarter review o the monetary policy5 the R$#
had let all %ey policy rates unchanged to support the Rupee
to stay stable* (he repurchase5 or the repo rate5 the interest
that commercial ban%s pay to the R$# on short.term
borrowings5 has been let unchanged at ;*/: percent5 and so
has the reverse repo rate at 2*/: percent*
(he cash reserve ratio I&RR)5 or the share o deposits
ban%s must %eep with the central ban%5 is also maintained
at 9 percent* Earlier this month5 the central ban% had ta%en
a number o measures to s>ueeze li>uidity out o the
ban%ing system5 in order to ensure stability in the currency
mar%ets*
Ees ban% is #ndiaMs ourth largest private sector lender*
A4&40A; AWA04&411 30A8!684 "8Cs 7'0
6B31 3' 4EA"
1. !he 0eserve Bank of 6ndia increased the Bank 0ate
on Ruly 1) 2213. What is the present Bank 0ate(
6) <*/:A /) =*/:A 8) 60*/:A
9) =A :) 60A
2. Which 1tate-Bnion !erritory has been ranked first
amon%st 3) 1tates and Bnion !erritories with re%ard to
7inancial 6nclusion accordin% to a recent 80616;
report(
6) Puducherry /) &handigarh
8) Derala 9) (amil 'adu :) "ndhra Pradesh
3. !he 2213 767A Bnder:22 World 8up was held in
!urkey in Rune:Ruly 2213. Which country won the
tournament for the first time(
6) -rance /) 3ruguay 8) Ghana
9) #ra> :) (ur%ey
$. Nemant 1oren became the 8hief "inister of which of
the followin% states on Ruly13 2213(
6) $ihar /) &hhattisgarh 8) 3ttara%hand
9) Hhar%hand :) Madhya Pradesh
). Who has been appointed as the 8hairperson of the
&ational 8ommission for 3rotection of 8hild 0i%hts
=&8380>(
6) Giri?a !yas /) Sudha Sharma 8)Dushal Singh
9) Drishna (irat :) "runa Roy
*. Who was honored with the &ational ;ata
"an%eshkar Award in "ay 2213( =!his award is
instituted by the "adhya 3radesh %overnment>
6) "*R* Rehman /) Cariharan
8) Shreya Ghoshal 9) Shaan :) 'one o these
+. Books and Authors are %iven. 6dentify the
mismatched pair(
6) #n &ustody ..."nita )esai
/) Sea o Poppies..."mitav Ghosh
8) (he "rgumentative #ndian ..."martya Sen
9) 3naccustomed Earth...Hhumpa +ahiri
:) River o Smo%e...!*S* 'aipaul
48
,. 4thanol as a viable bio:fuel can be obtained from(
6) Paddy /) Potato 8) Sugarcane
9) Wheat :) (obacco
/. Who amon% the followin% 3adma 1hri winners is not
a sportsperson(
6) Eogeshwar )utt /) Girish 'agara?egowda
8) )ing%o Singh 9) Premlata "grawal
:) !andana +uthra
12. 'ther than Penezuela which one amon% the
followin% from 1outh America is a member of '348(
6) "rgentina /) $razil 8) Ecuador
9) $olivia :) &hile
11. OB Oookmin Bank is based in(
6) Hapan /) South Dorea 8) &hina
9) Malaysia :) Singapore
12. 8rystal Award is %iven by(
6) "PE& /) #$R) 8) WC,
9) WE- :) W(,
13. Which one of the followin% was the earliest event to
take place(
6) Establishment o +#&
/) 'ationalization o S$#
8) Enactment o $an%ing Regulation "ct
9) #ntroduction o -irst -ive Eear Plan
:) 'ationalization o S$# "ssociate $an%s
1$. Who is the 8hairman of the &ational Water
0esources 8ouncil(
6) Prime Minister
/) Minister o Water Resources
8) Minister o Environment and -orests
9) Minister o Science and (echnology
:) 'one o these
1). Which of the followin% is not a pharmaceutical
company(
6) &hevron /) Piramal #ndia
8) Pizer 9) Gydus &adila
:) Sanoi."ventis
1*. Who amon% the followin% is a football player(
6) -ernando "lonso /) Dimi Rai%%onen
8) +ewis Camilton 9) Sebastian !ettel
:) -ernando (orres
1+. 'r%anizations and their Nead9uarters are %iven
below. Which of the followin% pairs is not correctly
matched(
6) ")$...Manila /) World $an% .Washington
8) "PE&...Singapore 9) "SE"'...$ang%o%
:) W(,...Geneva
1,. !he founder of World 4conomic 7orum(
6) Robert Goellic% /) Paul Drugman
8) Pascal +amy 9) Hohn Galbraith
:) Dlaus Schwab
1/. !he 12 non:permanent members of the Bnited
&ations 1ecurity 8ouncil =B&18> are elected by the
Aeneral Assembly for a term of(
6) 6 year /) / years 8) 8 years
9) 9 years :) : years
22. Which one of the followin% 8ar makers does not
belon% to Rapan(
6) (oyota /) Conda 8) 'issan
9) Suzu%i :) Cyundai
21. 6dentify the mismatched pair(
6) $an% Rate...60*/:A /) Repo Rate...;*/:A
8) Reverse Repo Rate...2*/:A
9) &RR...9*/:A :) S+R.../8A
22. Who amon% the followin% was conferred with the
3adma Pibhushan Award this year(
6) +ate Ra?esh Dhanna /) !i?ay Dumar Saraswat 8)
Gayatri Spiva%
9) Raghunath Mohapatra :) "bdul Rashid Dhan
23. !he Aeneral Anti Avoidance 0ules =AAA0> will
come into force from(
6) "pril 65 /069 /) "pril 65 /06:
8) "pril 65 /062 9) "pril 65 /06; :) "pril 65 /06<
49
2$. <An An%el in the 8ockpit< is written by(
6) !i?ay Mallya /) !i?aypat Singhania
8) Diran $edi 9) Ratan (ata :) 'one o these
2). !he small borrowers in rural areas still prefer to
take informal route for their credit needs. Which of the
followin% is the informal route of credit(
6) &redit cards /) )ebit cards
8) RR$s 9) &ommercial ban%s
:) Money lenders
Answers
6) 8 /) 6 8) 6 9) 9 :) 8 2) / ;) : <) 8 =) : 60) 8
66) / 6/) 9 68) 8 69) 6 6:) 6 62) : 6;) 9 6<) : 6=) / /0) :
/6) 9 //) 9 /8) 8 /9) / /:) :
BA&O6&A AWA04&411 30A8!684 CB41!6'&1
1. Banks in our country normally publicize that
additional interest rate is allowed on retail domestic
term deposits of(
a) Minors
b) Married Women
c) Senior citizens
d) Government Employees
e) Rural residents
2. When the rate of inflation increases(
a) Purchasing power o money increases
b) Purchasing power o money decreases
c) !alue o money increases
d) Purchasing power o money remains unaected
e) "mount o money in circulation decreases
3. A centralized database with online connectivity to
branches internet as well as A!":network which has
been adopted by almost all ma#or banks of our country
is known as(
a) #nvestment $an%ing
b) &ore $an%ing
c) Mobile $an%ing
d) 'ational $an%ing
e) Specialized $an%ing
$. Which of the followin% is &'! considered a money
market instrument(
a) (reasury $ills b) Repurchase "greement
c) &ommercial Paper d) &ertiicate o )eposit
e) Shares and $onds
). Which of the followin% is necessary while openin%
deposit accounts in banks(
a) Will b) Registration
c) 'omination d) #ndemnity e) Guarantee
*. Which of the followin% is not a bankin% term(
a) +etter o credit b) M#$,R
c) -actoring services d) Entry load
e) 'one o these
+. Which of the followin% or%anizations issue the rules
of %lobal trade(
a) #M- b) World (rade ,rganization
c) -oreign trade d) G./0
e) 'one
,. 'ne sin%le statement that depicts the financial
position of a Bank and - or Business enterprise at a
%iven point of time is called.
a) Statement o product details
b) -oreign e1change
c) $alance Sheet
d) $alance o payment
e) (rading and Manuacturing account
/. !he 0everse "ort%a%e scheme is launched to %ive
benefit to which of the followin% %roups of society(
a) Persons below 20 yrs
b) Senior &itizens
c) 3nemployed youth
d) ,rphans
e) "ll
12. 'ne of the ma#or challen%es bankin% industry is
facin% these days is curbin% deliberate efforts of some
people to brin% money earned throu%h ille%al activities
in circulation. Which of the followin% act is passed to
prevent this activity(
a) Payment 4 settlements "ct
b) &ontrol money supply "ct
c) 'arcotics and Psychotropic substance "ct
d) Prevention o Money laundering "ct
50
e) 'one
11. Which of the followin% scheme is not meant for
investment purposes(
a) 'ational saving certiicate b) #nrastructure bonds
c) Mutual unds d) +etter o credit e) 'one o these
12. Basel norms which are important re%ulatory
stipulations are meant for which sector(
a) #nsurance b) $an%ing c) Micro inance
d) Pension unds e) 'one
13. 1ystematic investment 3lans relates to.
a) Mutual -unds b) +ie #nsurance &ompanies
c) &ommercial $an%s d) Post oice savings schemes
e) 'one
1$. 4uro money is the official currency of(
a) '"(, b) 3' c) European
d) Germany and England e) 'one o these
1). Which of the followin% is an e5ample of cash less
purchase(
a) )ebit card b) &redit card c) "(M withdrawal
d) "ll o the above e) 'one
1*. Whose si%nature appears on 6ndian 0s. 122 note(
a> 7inance "inister
b) R$# Governor c) -inance Secretary
d) &hairman5 Planning &ommission
e) 'one
6;* While discussing investments there is a mention o
short term government security* What is this investmentS
a) )ebenture
b) Mutual unds
c) (reasury bill
d) Share
e) 'one o these
6<* '$-&s are an important part o the #ndian inancial
system* what is meant by this termS
a) 'ew $an%ing -inancial &ompanies
b) 'on $an%ing -inancial &ompanies
c) 'eo $an%ing -inancial &onederation
d) 'on ban%ing -iscal &ompanies
6=* $an%ing loan against property re>uires the asset to be
ree rom encumbrances* What does it meanS
a) (he asset to be ree rom any liability
b) (he asset to be properly registered
c) (he property to be ully constructed
d) (he asset should not have multiple owners
e) 'one
/0* R$# stipulates a healthy mi1 o &"S" in the business
igures o ban%s* What is &"S"S
a) &ustomer "nalysis and Savings Pattern
b) &ost "ppreciation and selling "nalysis
c) &urrent "ccount and saving "ccount
d) &redit and savings "ggregate
e) 'one o these
/6* Which one o the ollowing is not an electronic ban%ing
delivery channelS
a) Mobile !ans
d) Mobile Phone $an%ing
c) #nternet $an%ing
d) (ele $an%ing
e) "(M
//* (he Rate at which the domestic currency can be
converted into oreign currency and vice.versa is %nown as
the XXXX
a) E1change rate
b) M#$,R
c) #nter ban% &all money rate
d) $ase rate
e) +#$,R
/8* 'ow.a.days $an%s are selling third party products*
E1ample o third party product isO
a) Mutual unds
b) (erm deposits
c) &redit cards
d) "ll o these
e) 'one
/9* Electronic &learing Service in ban%s can be availed
only byO
a) #ndividuals
b) &orporates
51
c) Senior &itizens
d) "ll o these
e) 'one
Answers
6) c7 /) b7 8) b7 9) e7 :) c7 2) d7 ;) b7 <) c7 =) b7 60) d7
66) d7 6/) b7 68) a7 69) c7 6:) d7 62) b7 6;) c7 6<) b7 6=) a7
/0) c7
/6) a7 //) a7 /8) a7 /9) d7
Posted by $"'D#'G "W"RE'ESS at Monday5 Huly 065
/068 6 commentO
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+abelsO $"'D#'G SE&(,R5 M&Rs
T!ursday, 2. -une 2013
A4&40A; AWA04&411 30A8!684 "8Cs
6* Which $an%s are established to help small and marginal
armers5 agricultural labour5 artisans and small
entrepreneurs etcS
6) -oreign $an%s
/) #ndustrial ban%s
8) Regional Rural $an%s
9) E1im ban%
:) 'one
/* #n which year5 the $an%ing commission submitted the
report to establish rural ban%sS
6)6=:/
/)6=:;
8)6=:<
9)6=;/
:)6=<9
8* Which prime minister mentioned the concept o @Rural
$an%s@ in (wenty.Point Programme announced on 6 Huly
6=;:S
6) Morar?i )esai
/) Hawahar +al 'ehru
8) #ndira Gandhi
9) +al $ahadur Shastri
:) &haran Singh
9* ,n 80 Huly 6=;:5 the wor%ing group on Rural $an%s
submitted report to the government o #ndia* #t was headed
byS
6) !i?ay & Del%ar
/) &* Ranga Ra?an
8) Manmohan Singh
9) $imal Halan
:) 'arasimaham
:* #n which year5 the President o #ndia issued the ordinance
to establish Regional Rural $an%sS
6) 6==6
/) 6=<:
8) 6=2=
9) 6=;:
:) /000
2* Regional Rural $an%s "ct passed inS
6) 6=<6
/) 6=2=
8) 6=;2
9) 6=<0
:) 6=</
;* #n Regional Rural $an%s5 &entral government holds :0A
capital and Sponsored ban% holds 8:A capital* Who holds
the remaining 6:A capitalS
6) Reserve $an% o #ndia
/) '"$"R)
8) 'ational housing $an%
9) State government
:) +ie #nsurance &orporation o #ndia
<* -inancial regulation o RR$s seen ater byS
6) Reserve $an% o #ndia
/) Securities and E1change $oard o #ndia
8) )epartment o Come "airs
9) '"$"R)
:) "ll o above
=* Supervisory powers o RR$s have been vested withS
6) &ompetition &ommission o #ndia
/) Small industrial $an% o #ndia
8) Reserve $an% o #ndia
52
9) '"$"R)
:) 'ational Cousing $an%
60* (he irst Regional Rural $an% #ndia started by
Syndicate $an% on / ,ctober 6=;:* #t isS
6) Dashmir $an% at Hammu in Hammu and Dashmir
/) &hi%magalur Gramin $an% in
&hi%magalur in Darnata%a
8) Pallavan Gramin $an% in (amilnadu
9) +uc%now DGC Gramin $an% in 3ttar Pradesh
:) Prathama Grammen ban% at Moradabad in 3ttar Pradesh
66* Regional Rural $an%s are not ound in the state oS
6) Maharashtra and Darnata%a
/) "ndhra Pradesh and (amilnadu
8) Si%%im and Goa
9) "ssam and 3ttar Pradesh
:) Ra?asthan and Caryana
6/* Which committee recommended to permit RR$s to
invest 'on.S+R surplus unds in proitable areasS
6) Gundu Rao
/) Subba Rao
8) $handari
9) )iwa%aran
:) !aidyanath
68* Which committee recommended or the amalgamation
o RR$sS
6) D*&* &ha%ravarthy
/) 3sha (horat
8) !yas
9) &*!* "nand $ose
:) "?ay Dumar Seth
69* ,n // "pril /0685 the Regional Rural $an%s
I"mendment) $ill5 /068 introduced to increase the
authorized capital o RR$ rom Rs* : crore to Rs*** Iin
crores) S
6) 600
/) /00
8) 6000
9) :0
:) :00
6:* "s per the statement given on /9 Hune /0685 &ompanies
planning to apply or ban% licenses will be allowed how
much percent oreign direct investment I-)#) in their
holding companiesS
6) 600A
/) 9=A
8) :6A
9) /9A
:) ;6A
62* Which international monetary organization granted
W660 million to help 3rban services in Hammu and Srinagar
on 6; May /068S
6) World ban%
/) #M-
8) "sian )evelopment $an%
9) #nternational )evelopment "ssociation
:) #nternational -inance &orporation
6;* Maturity o #nlation #nde1ed $onds issued by R$# on
6:th May /068 isS
6) : years
/) /0 years
8) 60 Eears
9) 69 years
:) 600 years
6<* &lean 'ote Policy issued by R$# on 69 May /068* "s
per R$#5 on average what percentage o notes is disposed
o ater getting solid every yearS
6) :0A
/) / A
8) /0A
9) 6<A
:) 600A
6=* &losed.end und scheme meansS
6) " scheme o an investment company in which a
noni1ed number o shares are issued
/) ,er o a company to close the business at the end o
year
8) " scheme o an investment company in which a i1ed
number o shares are issued
9) &ompany@s oer to sell the assets at the lowest rate
:) 'one
/0* "am "dmi $ima Eo?ana5 a Social Security insurance
53
Scheme or rural landless household introduced by union
government on /nd ,ctober /00;* (he scheme
administered byS
6) +#&
/) G#&
8) '#&
9) 3#&
:) ("(" "#G
/6* "im o Swavalamban isS
6) (o encourage the people rom the unorganised sector to
voluntarily save or their retirement
/) (o encourage the people to see% educational courses
through distance education system
8) (o as% the 'on.organised sector people
to boycott their wor% and ?oin in the government service
9) (o encourage the house hold sector to save money
:) 'one
//* ,peration Ganga Prahar relates toS
6) central government initiative to plant trees on the ban%s
o Ganga River
/) banning the use o motor boats by piligrims in Ganga
river
8) central government initiative to clean ganga river with
the aid o local people
9) operation o "rmy to demolish the unauthorized
construction o $uildings on the ban%s o Ganga River
:) rescue operation o "rmy to rescue the stranded pilgrims
in 3ttara%hand
/8* 'ew chairman o +#& is***S
6) 3*D* Sinha
/) (*S* !i?ayan
8) Dalyan Singh
9) S*D* Roy
:) 'one
/9* 3nion Railway minister isS
6) Malli%ar?un Dharge
/) "mbi%a Soni
8) Dapil Sibal
9) &*P* Hoshi
:) Raman Singh
/:* #R'SS.6" isS
6) Russia@s reusable satellite
/) 3S"@s sub sonic missile
8) #reland@s new sea port
9) #ndian Regional 'avigation Satellite System
:) South "rica and #ndia Hoint venture o new solar car
/2* +argest ive emerging economies G.: include $razil5
&hina5 #ndia5 Me1ico andS
6) 3S"
/) South "rica
8) Sri +an%a
9) Hapan
:) Pa%istan
/;* (ianhe./ is the super computer developed byS
6) Russia
/) #ndia
8) Hapan
9) (hailand
:) &hina
/<* "s per the report o 2<th round o 'ational Sample
Survey ,ice I'SS,) released on /0 Hune /0685 What is
the average monthly per capita e1penditure IM&PE) o the
poorest o the poor in the countryS
6) Rs*;00*:0 in urban areas and Rs* :/6*99 in rural areas
/) Rs*200*:0 in urban areas and Rs* 9/6*99 in rural areas
8) Rs*;00*00 in urban areas and Rs*6/6*99 in rural areas
9) Rs*6000 in urban areas and Rs* :00 in rural areas
:) Rs*<:0 in urban areas and Rs*900 in rural areas
/=* $y which year5 #ndia surpass &hina to become most
populous country in the world as per the estimates o
3nited 'ations reportS
6) /0:0
/) /0/<
8) /090
9) /02:
:) /600
80* )etails o 3ttara%hand state given* +ocate the wrong
optionS
6) 3ttara%hand is also reerred as )ev $humi I+and o
Gods)
/) ,n =th 'ovember /0005 it was ormed as /;th state o
Republic o #ndia
54
8) !i?ay $ahuguna is the present &hie Minister o state
9) 'ainital is the capital o state
:) $adrinath and Dedarnath5 the Cindu@s important pilgrim
destinations are in this state
86* (he rate at which Reserve $an% o #ndia IR$#) borrows
money rom ban%s isS
6) S+R
/) $ase Rate
8) Primary +ending Rate
9) $an% Rate
:) Reverse Repo Rate
8/* Who declares Reverse Repo RateS
6) &entral Government
/) State Government
8) R$#
9 ) SE$#
:) #R)"
88* # the Reverse Repo Rate increases5 then ban%***S
6) unds increase as they never give unds to R$#
/) unds go to overseas
8) has to close business
9) unds decrease5 as ban% lend the unds to R$# due to rate
hi%e
:) 'one
89* # the Reverse Repo Rate increases5 then interest on
loans oer by ban%s usually@
6) decrease
/) become Gero
8) lower than earlier rate o interest
9) increase
:) 'one
8:* Present Reverse Repo rate isS
6) 2*/:A
/) ;*/:A
8) <*/:A
9) /8A
:) 9A
82* #n the R$#@s mid.>uarter monetary policy review
declared on 6;th Hune /0685 R$# seriously concerned
aboutS
6) opening o branches by oreign ban%s
/) customer@s DE& details
8) State governments schemes
9) Rupee all5 e1ternal sector ris%s and elevated ood
inlation
:) Poverty in top 9 metros in the slum areas
8;* "s per the "nnual monetary policy statement /068.
/069 announced on 8 May /0685 which o the ollowing
$R#&S nations showed the accelerated growth during
/06/S
6) South "rica and $razil
/) #ndia and &hina
8) South "rica and &hina
9) &hina and Russia
:) Russia and $razil
8<* "s per the "nnual monetary policy statement /068.
/069 announced on 8 May /0685 R$# pro?ected the growth
o G)P or /068.69 is***S
6) :*;A
/) /*<A
8) :*0A
9) =*0A
:) <*/A
8=* ,n 62 March /0685 a Spice Par% in Mawan area o
Guna district opened in the state o***S
6) 3P
/) $ihar
8) Goa
9) (amilnadu
:) MP
90* Which operation launched by $&&# to restore the
credibility o #P+S
6) ,peration $all
/) ,peration -i1ing
8) ,peration &lean.up
9) ,peration 3mpire
:) ,peration Wic%et
96* (hailand ,pen Grand Pri1 $adminton tournament won
by %*Sri%anth on = Hune /068* Ce belongs to****S
6) Darnata%a
/) (amilnadu
55
8) Caryana
9) Cimachal Pradesh
:) "P
Posted by $"'D#'G "W"RE'ESS at (hursday5 Hune /;5
/068 9 commentsO
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Tuesday, 2/ -une 2013
BA&O6&A AWA04&411 30A8!684 "8Cs
6*#nterest payable on savings ban% accounts isS
a) )e.regulated by R$#
b) Regulated by State Governments
c) Regulated by &entral Govt
d) Regulated by R$#
e) Regulated by -inance Minister
/*(he usual deposit accounts o ban%s areS
a) &urrent accounts5 electricity accounts and insurance
premium accounts*
b) &urrent accounts5 post oice savings5 ban% accounts and
term deposit accounts*
c) +oan accounts5 savings ban% accounts and term deposit
accounts*
d) &urrent accounts5 savings ban% accounts and term
deposit accounts*
e) &urrent bill accounts and term deposit accounts*
8*-i1ed deposits and recurring deposits areS
a) Repayable ater an agreed period
b) Repayable on demand
c) 'ot repayable
d) Repayable ater death o depositors
e) Repayable on demand or ater an agreed period as per
ban%@s choice
9*"ccounts are allowed to be operated by che>ues in
respect oS
a) $oth savings ban% accounts and i1ed deposit accounts*
b) Savings ban% accounts and current accounts*
c) $oth savings ban% accounts and loan accounts*
d) $oth savings ban% accounts and cash accounts only*
e) $oth current accounts and i1ed deposit accounts*
:*Which o the ollowing is correct statementSa)'o interest
is paid on current deposit accounts*
b)#nterest is paid on current accounts at the same rate as
term deposit accounts*
c) (he rate o interest on current accounts and savings
accounts are the same*
d) 'o interest is paid on any deposit by the ban%*
e) Savings deposits are the same as current deposits*
2*$an%ing services delivered to a customer by means o a
computer control system that does not directly involve
ban%s branch is calledS
a) 3niversal ban%ing
b) !irtual ban%ing
c) 'arrow ban%ing
d) $ric% 4 Mortal ban%ing
e) 'one
;*-inancial inclusion means provision o Sa) -inancial
services namely payments5 remittances5 savings5 loans and
insurance at aordable cost to persons not yet given the
ban%
b) Ration at aordable cost to persons not yet given the
same
c) Couse at aordable cost to persons not yet given the
same
d) -ood at aordable cost to persons not yet given the same
e) Education at aordable cost to persons not yet given the
same
<* When a ban% returns a che>ue unpaid5 it is calledSa)
Payment o the che>ue
b) )rawing o the che>ue
c) &anceling o the che>ue
d) )ishonour o the che>ue
e) (a%ing o the che>ue
=*Who is the &hairman o the committee constituted by
R$# to study issues and concerns in the Micro -inance
#nstitutions IM-#) SectorS
a) EC Malegam
b) )r* D& &ha%raborty
c) &* Rangra?an
56
d) M* )amodaran
e) 3sha (horat
60*Which o the ollowing types o accounts are %nown as
@)emat "ccounts@S
a) "ccounts which are Gero $alance
b) "ccounts which are opened to acilitate repayment o a
loan ta%en rom the ban%* 'o other business can be
conducted rom there
c) "ccounts in which shares o various companies are
traded in electronic orm
d) "ccounts which are operated through internet ban%ing
acility
e) 'one o the above
66*'E-( meansS
a) 'ational Electronic -unds (ranser
b) 'egotiated Eicient -und (ranser system
c) 'ational Eicient -und (ranser solution
d) 'on Eective -und (ranser system
e) 'egotiated Electronic -oreign (ranser system*
6/*)istribution o insurance products and insurance
policies by ban%s as corporate agents is %nown asS
a) General insurance
b) 'on lie insurance
c) $ancassurance
d) #nsurance $an%ing
e) )eposit #nsurance
68*#n respect o partnership business5 ++P stands orO
a) +ocal +abour Promotion
b) +ow +abour Pro?ects
c) +imited +oan Partnership
d) +onger +iability Partnership
e) +imited +iability Partnership
69*What is a stale che>ueS
a) " che>ue issued without drawer@s signature*
b) " che>ue with only signature o the drawer*
c) " che>ue which has completed 8 months rom the date
o its issue*
d) "ny one o the above*
e) 'one
6:*#nterest on savings ban% account is now calculated by
ban%s onS
a) Minimum balance during the month
b) Minimum balance rom ;th to last day o the month
c) Minimum balance rom 60th to last day o the month
d) Ma1imum balance during the month
e) )aily product basis
62*+argest shareholder Iin percentage shareholding) o a
'ationalized ban% is S
a) R$#
b) '"$"R)
c) +#&
d) Govt o #ndia
e) #$"
Answers
6) a7 /) d7 8) a7 9) b7 :) a7 2) b7 ;) a7<) d7 =) a7 60) c7
66) a7 6/) c7 68) e7 69) c7 6:) e7 62) d
Posted by $"'D#'G "W"RE'ESS at (uesday5 Hune /:5
/068 6 commentO
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+abelsO $"'D#'G SE&(,R5 M&Rs
Sunday, 23 -une 2013
A4&40A; AWA04&411 7'0 0B6 A1161!A&!1
4EA"
6* Who has the sole right to mint coins in #ndiaS
6) R$#
/) MM(&
8) Government o #ndia
9) S$#
:) )epartment o Post
/* Whose signature appears on coinsS
6) President o #ndia
/) R$# governor
8) -inance Secretary
9) R$# deputy governor
:) &oins do not bear the signature
8* Government o #ndia withdrawn coins o denomination
57
o /: paise and below rom circulation with eect rom*****S
6) 80 Huly /066
/) 80 Hune /066
8) 80 Hune /06/
9) 80 Hune /060
:) 6 Hune /068
9* Who was appointed as the President o the "sian
)evelopment $an% I")$) by the $oard o Governors at
'ew )elhi on /; "pril /068S
6) Him Eong Dim
/) &hristine +egarde
8) (a%ehi%o 'a%ao
9) Mario )raghi
:) 'one
:* (o whom the world ban% granted a concessional loan o
W600 million or the implementation o low.income
housing schemeS
6) C)-&
/) #&#&#
8) S$#
9) R$#
:) 'ational Cousing ban%
2* ,n 9 "pril /0685 D*C*Muniyappa5 the Minister o State
I#ndependent &harge) o the Ministry o Micro 5 Small and
Medium Enterprises IMSME) given the statement* Cis
statement does not include*****
6) MSME sector contribute =A o G)P
/) #t accounts or around 9:A o the manuacturing output
8) #t contributes 82A o total value o e1ports
9) (he sector has been growing consistently above 60A or
the last ive years
:) (he sector will be removed rom the Priority Sector
lending
;* Who was appointed as the chairman to suggest the
measures or enhancing MSME e1ports recentlyS
6) Ratan ("("
/) "bhi?ith Sen
8) R*S*Gu?ral
9) Monte% Singh "hluwalia
:) "nand Sinha
<* (he #ndian +ie "ssurance &ompanies "ct was the irst
statutory measure to regulate lie business in #ndia* #t was
passed in ******S
6) 6=/:
/) 6=:2
8) 6=9;
9) 6=89
:) 6=6/
=* 3nion government put the e1port target o ****** billion or
the current inancial year /068. 69S
6) W 8/:
/) W 820
8) W 800*2
9) W 9:0
:) W 6:0
60* 3nder whose chairmanship5 the Group o Ministers
IGoM)was set up to ma%e a law to provide or the
independence o the &entral $ureau o #nvestigation I&$#)
and its unctional
autonomyS
6) &hidambaram
/) Ran?ith Sinha
8) "lo% Hoshi
9) $i%ram singh
:) S*"*#brahim
66* 3nion government on 6; "pril /068 declared to
enhance the installed capacity o renewable energy o
/:50000 MW to ::5000 MW by *******S
6) /06;
/) /06<
8) /06=
9) /0/:
:) /06;
6/* Which #ndian origin writer received the inaugural
Physics ?ournalism Prize sponsored by the #nstitute o
PhysicsI#,P) and the science and (echnology -acilities
&ouncil in WashingtonS
6) "bdul %alam
/) Ra?a Ramanna
8) "nil "nanthaswamy
9) Dasturi Rangan
:) &*R*Rao
68* Which nation ?oined as a dialogue partner in the
58
Shanghai &ooperation ,rganisation IS&,) on /2 "pril
/068S
6) #ndia
/) 3S"
8) (ur%ey
9) 3D
:) #srael
69* 9:th session o the #ndian +abour &onerence
concluded on 6< May /068 atS
6) Mumbai
/) Dol%ata
8) Pune
9) 'ew )elhi
:) 'one
6:* -actoring meansS
6) business o buying trade debts at a discount and ma%ing
a proit when debt is realized
/) giving loans to actories by the commercial ban%s at
concessional rates
8) banning the ban%s not to give loans to actories at lower
rate o interest
9) buying o customers assets whenever he did deault in
the payment o money
:) 'one
62* (rac%5 +ane5 Curdles5 Shot.put5 )iscuss (hrow5
Cammer (hrow5 (riple Hump5 Cigh Hump are the terms
used inS
6) &hess
/) !olley $all
8) -oot $all
9) &ycling
:) "thletics
6;* Eoungest player to play an English &ounty match isS
6) Canuma !ihari
/) (M Srivastava
8) Phiillips Rod
9) (im Mody
:) Matthew -isher
6<* (he Present Statutory +i>uidity Ratio IS+R) isS
6* /9A
/* /;A
8* /0A
9* /<A
:* /8A
6=* Staglation meansS
6) +ow inlation combined with high unemployment and
slow economic growth
/) Persistent high inlation combined with high
employment and ast economic growth
8) +ow inlation combined with high employment rate and
ast paced economic growth
9) Persistent high inlation combined with high
unemployment and slow economic growth
:) 'one o above
/0* &onsider the ollowing statementsS
i) Roshni is the s%ill development scheme launched on ;
Hune /068 by the ministry o Rural )evelopment
ii) #t aims to provide training and employment to youth in
the 60.8: years age group
iii) #t was launched in /9 'a1al.aected districts
iv) #t is a 600.crore pro?ect and is unded by union and state
governments5 with the union providing ;:A o the unding
Which o the above statements isFare correctS
6) ii iii
/) ii iv
8) i ii iii iv
9) ii
:) 'one
/6* #ndia@s si1th commodity e1change which started its
operations on 6= "pril /068S
6) 'SE
/) M&B
8) 'M&E
9) 3&B
:) "&E
//* &onstruction o country@s irst ully private Greenield
airport commenced inS
6) Gaya I$ihar)
/) Pune IMaharashtra)
8) Darai%al IPuducherry)
9) Sivaganga I(amilnadu)
:) Somnath IGu?arat)
/8* Where is the head oice o #nsurance Regulatory
59
)evelopment "uthorityS
6) Dol%ata
/) Mumba
8) Cyderabad
9) &hennai
:) )elhi
/9* (he correct statement isS
6) )uring the visit o Man Mohan singh in (hailand5 a
sapling o the sacred bodhi tree in $odh Gaya given as a
git to (hailand %ing $humibol "dulyade?
/) W :*/ billion humanitarian und will be given by 3', to
Syria
8) World@s largest concentrated solar power plant launched
by 3"E by name Shams #
9) -rom 6 "pril /0685 Myanmar allowed the circulation o
private newspapers ater :0 years
:) "ll o above
/:* Pic% the wrong combinationS
6) &hie Election &ommissioner. Satyendra Mishra
/) &hie o the 'aval Sta."dmiral )evendra Dumar Hoshi
8) Minister o &ommerce and #ndustry. "nand Sharma
9) &hie Minister o Darnata%a . Siddaramaiah
:) 3PS& &hairman . )*P*"garwal
/2* Who was re.elected as the chairman o #$"I#ndian
$an%s "ssociation) or the
/068.69 tenureS
6) &handa Docchar
/) 3r?ith Patel
8) D*R*Damath
9) "ravind Mayaram
:) 'one
/;* ,n 68 Hune /0685 R$# slapped ine on new generation
private ban%s* (he main reason is orS
6) not opening o 'o -rill accounts or $P+ amilies
/) not opening o "(M in onsite premises as promised by
-inance minister in the budget
8) not issuing new currency notes to customers
9) giving o advertisements about personal loans in news
papers
:) violating rules o DE& IDnow Eour &ustomer)
/<* +ea turns EellowO the Suis o "wadh released by
Camid "nsari* #t was edited byS
6) Cashim "mir "li
/) Muzaar "li
8) Gulam 'abi "zad
9) (aslima 'asreen
:) 'one
/=*3SS) stands orS
6) 3nstructured Supplementary Service )ata
/) 3niversal Supplementary Service )ata
8) 3nstructured Standard Service )ata
9) 3nstructured Supplementary Service )airy
:) 3nstructured Supplementary Stolen )ata
80* World ,ceans day celebrated onS
6) < "pril
/) < May
8) < Hune
9) < -ebruary
:) < Hanuary
86* Pages stained with blood5 Ramayana rom Ganga to
$rahmaputra5 Melodies and Guns5 (he Moth.Eaten
Cowdah o the (us%er5 (he shadow o Dama%hya5 (he
Man rom &hinnamasta are the wor%s oS
6) #ndira Goswami
/) 'ehru
8) Gandhi
9) Saro?ini 'aidu
:) &hetan $hagath
8/* #n which country $an% o $aroda opened its 600th
overseas branch on /< March /068S
6) 3S"
/) 3D
8) South "rica
9) )ubai
:) "ustralia
88* Savings account become inoperative5 iS
6) cash deposited in another branch not intimated to the
parent branch
/) amount withdrawn by "(M e1ceeds Rs*:05000
8) net ban%ing done on 86st o the month
9) not operated at all during certain period as per the ban%
rules
60
:) 'one
89* +a%ulish Eoga 3niversity is the irst Eoga university in
#ndia5 inaugurated on /8 May /068 atS
6) Mumbai
/) "hmadabad
8) 'ew )elhi
9) Patna
:) Caridwar
8:* Which global rating agency revised #ndia@s sovereign
credit outloo% rom negative to
stable on 6/ Hune /068S
6) S4P
/) &R#S#+
8) -itch
9) Moody
:) #&R"
82* 66;th &onstitutional "mendment bill relates toS
6) S&5 S( reservation in promotions
/) +o%pal and +o%ayu%ta
8) Goods and services (a1
9) increase the retirement age o high court ?udges
:) change o the entry o ,riya +anguage to ,diya in the
<th Schedule o &onstitution o #ndia
8;* "ssom Ratna "ward or the year /06/ conerred onS
6) #ndira Goswami I%nown by her pen name Mamoni
Raisom Goswami)
/) Surendranath Medhi I%nown by his pen name Saurav
Dumar &haliha)
8) (arun Gogoi I&hie minister o "ssam)
9) Hana%i $allav Patnai% IGovernor o "ssam)
:) Praulla Dumar Mahanta IPresident o the "som Gana
Parishad)
8<* (he #nternational Wor%shop on Green 'ational
"ccounting held on : "pril /068 atS
6) Mumbai
/) Dol%ata
8) Dochi
9) Pune
:) 'ew )elhi
Answers.
6.85 /.:5 8./5 9.85 :.:5 2.:5 ;.85 <.:5 =.65 60.6
66.65 6/.85 68.85 69.95 6:.65 62.:5 6;.:5 6<.:5 6=.95
/0.8
/6.95 //.85 /8.85 /9.:5 /:.65 /2.85 /;.:5 /<./5 /=.65
80.8
86.65 8/.95 88.95 89./5 8:.85 82.65 8;.65 8<.:
Posted by $"'D#'G "W"RE'ESS at Sunday5 Hune /85
/068 / commentsO
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+abelsO GE'ER"+ "W"RE'ESS5 M&Rs
T!ursday, 20 -une 2013
BA&O6&A AWA04&411 30A8!684 CB41!6'&1
6* $y increasing repo rate5 the economy may observe the
ollowing eects XXXXXX
a) Rate o interest on loans and advances will be costlier*
b) #ndustrial output would be aected to an e1tent*
c) $an%s will increase rate o interest on deposits*
d) #ndustry houses may borrow money rom oreign
countries*
e) "ll o these*
/* #ncreased interest rates5 as is e1isting in the economy at
present
willXXXXXXX
a) +ead to reduction in borrowings
b) +ead to lower G)P growth*
c) Mean higher cost o raw materials*
d) Mean lower cost o raw materials*
e) Mean higher wage bill*
8* Which o the ollowing schemes is launched to provide
pension to people in unorganized sectors in #ndiaS
a) Swabhiman
b) Heevan )hara
c) Heevan Dalyan
d) "SC"
e) Swalamban
9* " che>ue returned or insuiciency o unds* Payee will
61
have right to notice and approach court o law or ?ustice
under section 68< o which actS
a) #ndian Penal &ode
b) 'egotiable #nstrument "ct
c) &riminal Procedure &ode
d) Payment and Settlement "ct
e) #ndian &ontract "ct
:* Mr* Ra?endra had illed a complaint with $an%ing
,mbudsman but is not satisied with the decision* What is
the ne1t option beore him or getting his matter resolvedS
a) Write to the &M) o the $an%*
b) -ile an appeal beore the -inance Minister*
c) -ile an appeal beore the $an%ing ,mbudsman again*
d) -ile an appeal beore the )y* Governor R$#*
e) Simply close the matter as going to court involves time
and money*
2* Which o the ollowing is an e1ample o -inancial
assetsS
a) 'ational Saving &ertiicate
b) #nrastructure $onds
c) #ndira !i%as Patra
d) Drishi !i%as Patra
e) "ll o these
;* $an% branches which can underta%e oreign e1change
business directly are %nown asO
a) "uthorized dealers
b) -oreign dealers
c) ,verseas branches
d) "pproved dealers
e) E1change branches
<* #nsurance cover or ban% deposits in our country is
provided by XXXX
a) S$#
b) Govt o #ndia
c) G#&
d) +#&
e) )#&G&
=* (he -inancial +iteracy does not include which o the
ollowingS
a) Cow to invest the unds
b) Cow to use the limited unds careully
c) Cow to minimize the ris%s
d) Cow to reinvest the money earned
e) 'one o these
60* @")$ Reer to
a) "medical )evelopment $an%
b) "medical depository $ureau
c) "dditional )ebit $alance
d) ,nly a4b
e) "sian )evelopment ban%
66* When a ban%er tal%s about &)R5 what is he tal%ing
aboutS
a) &orporate )ebt Restructuring
b) &orporate )ebt Rollover
c) &ompany )ebt Rollover
d) &orporate )eposit Restructuring
e) &ompany )eposit Restructuring
6/* E1pand the term "+M as used in $an%ingF-inance
sectorS
a) "sset +iability Management
b) "sset +iability Maturity
c) "sset +iability Mismatch
d) "sset +iability Manpower
e) "sset +iability Maintenance
68* &ash Reserve Ratio I&RR) and Statutory +i>uidity
Ratio IS+R) are terms most closely related to which o the
ollowing industriesF mar%etsS
a) &apital Mar%et
b) $an%ing industry
c) &ommodities mar%et
d) Money Mar%et
e) Mutual und
69* What is the ma1imum period or which domestic term
deposits are normally accepted by the ban%s in our
countryS
a) 8 yr
b) : yr
c) ; yr
d) 60 yr
e) 6/ yr
62
6:* # you wish to purchase some 3S )ollars or your travel
abroad5 you should approachS
a) (he ministry o inance
b) (he 3S Embassy
c) "ny $an% $ranch authorized to do such activity
d) (he Reserve $an% o #ndia
e) E1ternal "airs Ministry
62* What does the letter @+@ stands or in the term +"-
commonly used in inancialFeconomic newsS
a) +i>uidity
b) +east
c) +iabilities
d) +ong
e) +i>uid
6;* Which o the ollowing is not classiied as a
&ommercial $an%S
a) Public Sector $an%
b) -oreign $an%
c) Private Sector $an%
d) Regional Rural $an%
e) 3rban &ooperative $an%
6<* Which o the ollowing is not the name o the a
$an%ing ,rganizationS
a) C)-&
b) #)$#
c) EES
d) SE$#
e) #&#&#
6=* Money laundering means XXXXXa) Ciding o income
source mainly to avoid income ta1
b) Money ac>uired rom undisclosed sources and deposited
in oreign ban%s
c) Money ac>uired rom undisclosed sources and deposited
in oreign ban%s
d) Process o conversion o money obtained illegally to
appear to have originated rom legitimate sources to
convert blac% money into white money*
e) Money ac>uired rom drug traic%ing
/0* Monetary Policy as an arm o the economic policy is
administered by XXXXX
a) Government o #ndia
b) R$#
c) S$#
d) Govt o the respective states
e) 'one
/6* Which o the ollowing is not a primary unction o a
$an%S
a) Granting loans
b) &ollecting che>uesF drats o &ustomers
c) "rranging !#S" or students or abroad education
d) #ssuing ban% drats
e) Selling GoldFSilver &oins*
//* Reserves which can act as a li>uidity buer or
&ommercial $an%s during crisis times are XXX
a) &"R b) &RR
c) &"R 4 &RR
d) &RR 4 S+R
e) S+R
Answers.
6) a7 /) c7 8) e7 9) b7 :) d7 2) a7 ;) a7 <) e7 =) e7 60) e7
66) a7 6/) a7 68) b7 69) d7 6:) c7 62) a* 6;) e7 6<) d7 6=) d7
/0) b7
/6) c7 //) d*
Posted by $"'D#'G "W"RE'ESS at (hursday5 Hune /05
/068 6 commentO
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+abelsO $"'D#'G SE&(,R5 M&Rs
%riday, 10 -une 2013
BA&O6&A AWA04&411 30A8!684 "8Cs
6* What is #ndia@s ran% in this year@s Global Peace #nde1
IGP#) that measured peace in 62/ countriesS
6) 696
/) 660
8) 68/
9) 689
:) 6:/
63
/* (he Reserve $an% o #ndia imposed ine on which o the
ollowing private sector ban%s or violation o DE& IDnow
Eour &ustomer) norms in Hune /068S
6) "1is $an%
/) C)-& $an%
8) #&#&# $an%
9) $oth 6 and /
:) "ll 65 / and 8
8* Raael 'adal o Spain won the -rench ,pen Men@s +awn
(ennis Grand Slam title or a record <th time* Whom did he
deeat in the inal in Paris in Hune /068S
6) Roger -ederer
/) 'ova% )?o%ovic
8) )avid -errer
9) "ndy Murray
:) Ho Wilred (songa
9* Who was appointed the 3nited States 'ational Security
"dviser in Hune /068S
6) Samantha Power
/) Hohn Mc&ain
8) +indsey Graham
9) Susan Rice
:) Hohn Derry
:* Who won her second -rench ,pen Women@s tennis title
in Paris on Hune <5 /068S
6) Maria Dirilen%o
/) Maria Sharapova
8) Helena Han%ovic
9) !ictoria "zaren%a
:) Serena Williams
2* Who was re.elected as the &hairman o the #ndian $an%s@
"ssociation I#$") or /068.69 tenure in Hune /068S
6) "ditya Puri
/) Pratip &haudhuri
8) Rana Dapoor
9) D*R*Damath
:) $*"*Prabha%ar
;* (he head>uarters o European 3nion is situated in which
o the ollowing countriesS
6) 3D
/) Germany
8) -rance
9) $elgium
:) 'etherlands
<* (he name @$luetooth@ gets its name rom a 60th century
%ing oS
6) &hina
/) )enmar%
8) Greece
9) (hailand
:) Spain
=* $aglihar )am is constructed on the riverS
6) &henab
/) Raavi
8) #ndus
9) Sutle?
:) $eas
60* Which country will host both the World &up -ootball
/069 and ,lympics /062S
6) Russia
/) 3S"
8) $razil
9) Hapan
:) Germany
66* $harat Ratna was instituted inS
6) 6=:9
/) 6=::
8) 6=26
9) 6=2=
:) 6=20
6/* (he present Pope chosen in March /068 hails romS
6) &anada
/) Me1ico
8) $razil
9) "rgentina
:) 3ruguay
68* @Paradise Regained@ was written byS
6) Hohn Deats
64
/) &harles )ic%ens
8) Hohn Milton
9) ,liver Goldsmith
:) +ord $yron
69* @&RE@ is an 'G, which wor%s or the welare oS
6) Senior citizens
/) &ancer patients
8) War victims
9) &hildren
:) "#)S patients
6:* (he 3SP o a &urrent account isS
6) Cigh minimum balance
/) 'o restrictions on transactions
8) 'o interest payable
9) Restricted deposits
:) 'one o these
62* +eads or Come +oans can be obtained romS
6) (raders
/) (rusts
8) $uilders
9) &ooperative societies
:) 'one o these
6;* (he target group or SME loans isS
6) Students
/) Cousewives
8) Entrepreneurs
9) Salaried persons
:) Government underta%ings
6<* Which o the ollowing terms is used in the ield o
inance and ban%ingS
6) Metabolism
/) Genetic process
8) &entriugal orce
9) )ebt instrument
:) E1perimental error
6=* (he 'ational Social Security -und I'SS-) helps which
o the ollowing groups o societyS
6) $an% employees
/) &entral government employees
8) Wor%ers in the unorganized sector
9) Wor%ers in the te1tile industry
:) Women employees
/0* Which o the ollowing tools is used by the R$# to
control credit and monetary situations o the mar%etsS
6) R(GS
/) 'E-(
8) E&S
9) &RR
:) $alance o trade
/6* Which o the ollowing countries is located in South
"mericaS
6) South Sudan
/) South Dorea
8) 3ganda
9) "ngola
:) 3ruguay
//* Which o the ollowing is the currency o MyanmarS
6) (a%a
/) )inar
8) Dyat
9) Een
:) )ollar
/8* Which o the ollowing terms is not used in the ield o
EconomicsS
6) 'et income
/) &ost o pro?ect
8) -low o und
9) $alance sheet
:) &old chain
/9* Reverse Mortgage scheme is designed %eeping which
o the ollowing groups o society in considerationS
6) )eense personnel
/) Senior citizens
8) Eoungsters who ?ust started earning
9) )ependent women
:) 'one o these
/:* What happens when an economy is in recessionS
6) G)P growth slows down
/) 3nemployment rate rises
65
8) $an%ruptcies rise
9) $oth 6 and /
:) "ll 65 / and 8
/2* Retail investors means which o the ollowing types o
stoc% mar%et investorsS
6) Mutual unds
/) &orporate bodies
8) Promoters o companies
9) #ndividuals
:) -##s
/;* Which o the ollowing is not an agricultural
commodityS
6) &ardamom
/) &umin
8) Garlic
9) (urmeric
:) Sulphur
Answers.
6) 67 /) :7 8) 87 9) 97 :) :7 2) 97 ;) 97 <) /7 =) 67 60)87
66) 67 6/) 97 68) 87 69) 97 6:)/7 62) 87 6;) 87 6<) 97 6=) 87
/0) 97
/6) :7 //) 87 /8) :7 /9) /7 /:) :7 /2) 97 /;) :7
BA&O6&A AWA04&411 30A8!684 CB41!6'&1
6* $an%s in our country normally publicize that additional
interest rate is allowed on retail domestic term deposits oS
a) Minors
b) Married Women
c) Senior citizens
d) Government Employees
e) Rural residents
/* When the rate o inlation increasesS
a) Purchasing power o money increases
b) Purchasing power o money decreases
c) !alue o money increases
d) Purchasing power o money remains unaected
e) "mount o money in circulation decreases
8* " centralized database with online connectivity to
branches5 internet as well as "(M.networ% which has been
adopted by almost all ma?or ban%s o our country is %nown
asS
a) #nvestment $an%ing
b) &ore $an%ing
c) Mobile $an%ing
d) 'ational $an%ing
e) Specialized $an%ing
9* Which o the ollowing is ',( considered a money
mar%et instrumentS
a) (reasury $ills
b) Repurchase "greement
c) &ommercial Paper
d) &ertiicate o )eposit
e) Shares and $onds
:* Which o the ollowing is necessary while opening
deposit accounts in ban%sS
a) Will
b) Registration
c) 'omination
d) #ndemnity
e) Guarantee
2* Which o the ollowing is not a ban%ing termS
a) +etter o credit
b) M#$,R
c) -actoring services
d) Entry load
e) 'one o these
;* Which o the ollowing organizations issue the rules o
global tradeS
a) #M-
b) World (rade ,rganization
c) -oreign trade
d) G./0
e) 'one
<* ,ne single statement that depicts the inancial position o
a $an% and F or $usiness enterprise at a given point o time
is calledO
a) Statement o product details
b) -oreign e1change
c) $alance Sheet
d) $alance o payment
66
e) (rading and Manuacturing account
=* (he Reverse Mortgage scheme is launched to give
beneit to which o the ollowing groups o societyS
a) Persons below 20 yrs
b) Senior &itizens
c) 3nemployed youth
d) ,rphans
e) "ll
60* ,ne o the ma?or challenges ban%ing industry is acing
these days is curbing deliberate eorts o some people to
bring money earned through illegal activities in circulation*
Which o the ollowing act is passed to prevent this
activityS
a) Payment 4 settlements "ct
b) &ontrol money supply "ct
c) 'arcotics and Psychotropic substance "ct
d) Prevention o Money laundering "ct
e) 'one
66* Which o the ollowing scheme is not meant or
investment purposesS
a) 'ational saving certiicate
b) #nrastructure bonds
c) Mutual unds
d) +etter o credit
e) 'one o these
6/* $asel norms which are important regulatory stipulations
are meant or which sectorS
a) #nsurance
b) $an%ing
c) Micro inance
d) Pension unds
e) 'one
68* Systematic investment Plans relates toO
a) Mutual -unds
b) +ie #nsurance &ompanies
c) &ommercial $an%s
d) Post oice savings schemes
e) 'one
69* Euro money is the oicial currency oS
a) '"(,
b) 3'
c) European
d) Germany and England
e) 'one o these
6:* Which o the ollowing is an e1ample o cash less
purchaseS
a) )ebit card
b) &redit card
c) "(M withdrawal
d) "ll o the above
e) 'one
62* Whose signature appears on #ndian Rs* 600 noteS
a) -inance Minister
b) R$# Governor
c) -inance Secretary
d) &hairman5 Planning &ommission
e) 'one
6;* While discussing investments there is a mention o
short term government security* What is this investmentS
a) )ebenture
b) Mutual unds
c) (reasury bill
d) Share
e) 'one o these
6<* '$-&s are an important part o the #ndian inancial
system* what is meant by this termS
a) 'ew $an%ing -inancial &ompanies
b) 'on $an%ing -inancial &ompanies
c) 'eo $an%ing -inancial &onederation
d) 'on ban%ing -iscal &ompanies
6=* $an%ing loan against property re>uires the asset to be
ree rom encumbrances* What does it meanS
a) (he asset to be ree rom any liability
b) (he asset to be properly registered
c) (he property to be ully constructed
d) (he asset should not have multiple owners
e) 'one
/0* R$# stipulates a healthy mi1 o &"S" in the business
igures o ban%s* What is &"S"S
a) &ustomer "nalysis and Savings Pattern
67
b) &ost "ppreciation and selling "nalysis
c) &urrent "ccount and saving "ccount
d) &redit and savings "ggregate
e) 'one o these
/6* Which one o the ollowing is not an electronic ban%ing
delivery channelS
a) Mobile !ans
d) Mobile Phone $an%ing
c) #nternet $an%ing
d) (ele $an%ing
e) "(M
//* (he Rate at which the domestic currency can be
converted into oreign currency and vice.versa is %nown as
the XXXX
a) E1change rate
b) M#$,R
c) #nter ban% &all money rate
d) $ase rate
e) +#$,R
/8* 'ow.a.days $an%s are selling third party products*
E1ample o third party product isO
a) Mutual unds
b) (erm deposits
c) &redit cards
d) "ll o these
e) 'one
/9* Electronic &learing Service in ban%s can be availed
only byO
a) #ndividuals
b) &orporates
c) Senior &itizens
d) "ll o these
e) 'one
Answers
6) c7 /) b7 8) b7 9) e7 :) c7 2) d7 ;) b7 <) c7 =) b7 60) d7
66) d7 6/) b7 68) a7 69) c7 6:) d7 62) b7 6;) c7 6<) b7 6=) a7
/0) c7
/6) a7 //) a7 /8) a7 /9) d7
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/068 6 commentO
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T!ursday, 2. -une 2013
A4&40A; AWA04&411 30A8!684 "8Cs
6* Which $an%s are established to help small and marginal
armers5 agricultural labour5 artisans and small
entrepreneurs etcS
6) -oreign $an%s
/) #ndustrial ban%s
8) Regional Rural $an%s
9) E1im ban%
:) 'one
/* #n which year5 the $an%ing commission submitted the
report to establish rural ban%sS
6)6=:/
/)6=:;
8)6=:<
9)6=;/
:)6=<9
8* Which prime minister mentioned the concept o @Rural
$an%s@ in (wenty.Point Programme announced on 6 Huly
6=;:S
6) Morar?i )esai
/) Hawahar +al 'ehru
8) #ndira Gandhi
9) +al $ahadur Shastri
:) &haran Singh
9* ,n 80 Huly 6=;:5 the wor%ing group on Rural $an%s
submitted report to the government o #ndia* #t was headed
byS
6) !i?ay & Del%ar
/) &* Ranga Ra?an
8) Manmohan Singh
9) $imal Halan
:) 'arasimaham
68
:* #n which year5 the President o #ndia issued the ordinance
to establish Regional Rural $an%sS
6) 6==6
/) 6=<:
8) 6=2=
9) 6=;:
:) /000
2* Regional Rural $an%s "ct passed inS
6) 6=<6
/) 6=2=
8) 6=;2
9) 6=<0
:) 6=</
;* #n Regional Rural $an%s5 &entral government holds :0A
capital and Sponsored ban% holds 8:A capital* Who holds
the remaining 6:A capitalS
6) Reserve $an% o #ndia
/) '"$"R)
8) 'ational housing $an%
9) State government
:) +ie #nsurance &orporation o #ndia
<* -inancial regulation o RR$s seen ater byS
6) Reserve $an% o #ndia
/) Securities and E1change $oard o #ndia
8) )epartment o Come "airs
9) '"$"R)
:) "ll o above
=* Supervisory powers o RR$s have been vested withS
6) &ompetition &ommission o #ndia
/) Small industrial $an% o #ndia
8) Reserve $an% o #ndia
9) '"$"R)
:) 'ational Cousing $an%
60* (he irst Regional Rural $an% #ndia started by
Syndicate $an% on / ,ctober 6=;:* #t isS
6) Dashmir $an% at Hammu in Hammu and Dashmir
/) &hi%magalur Gramin $an% in
&hi%magalur in Darnata%a
8) Pallavan Gramin $an% in (amilnadu
9) +uc%now DGC Gramin $an% in 3ttar Pradesh
:) Prathama Grammen ban% at Moradabad in 3ttar Pradesh
66* Regional Rural $an%s are not ound in the state oS
6) Maharashtra and Darnata%a
/) "ndhra Pradesh and (amilnadu
8) Si%%im and Goa
9) "ssam and 3ttar Pradesh
:) Ra?asthan and Caryana
6/* Which committee recommended to permit RR$s to
invest 'on.S+R surplus unds in proitable areasS
6) Gundu Rao
/) Subba Rao
8) $handari
9) )iwa%aran
:) !aidyanath
68* Which committee recommended or the amalgamation
o RR$sS
6) D*&* &ha%ravarthy
/) 3sha (horat
8) !yas
9) &*!* "nand $ose
:) "?ay Dumar Seth
69* ,n // "pril /0685 the Regional Rural $an%s
I"mendment) $ill5 /068 introduced to increase the
authorized capital o RR$ rom Rs* : crore to Rs*** Iin
crores) S
6) 600
/) /00
8) 6000
9) :0
:) :00
6:* "s per the statement given on /9 Hune /0685 &ompanies
planning to apply or ban% licenses will be allowed how
much percent oreign direct investment I-)#) in their
holding companiesS
6) 600A
/) 9=A
8) :6A
9) /9A
:) ;6A
62* Which international monetary organization granted
W660 million to help 3rban services in Hammu and Srinagar
69
on 6; May /068S
6) World ban%
/) #M-
8) "sian )evelopment $an%
9) #nternational )evelopment "ssociation
:) #nternational -inance &orporation
6;* Maturity o #nlation #nde1ed $onds issued by R$# on
6:th May /068 isS
6) : years
/) /0 years
8) 60 Eears
9) 69 years
:) 600 years
6<* &lean 'ote Policy issued by R$# on 69 May /068* "s
per R$#5 on average what percentage o notes is disposed
o ater getting solid every yearS
6) :0A
/) / A
8) /0A
9) 6<A
:) 600A
6=* &losed.end und scheme meansS
6) " scheme o an investment company in which a
noni1ed number o shares are issued
/) ,er o a company to close the business at the end o
year
8) " scheme o an investment company in which a i1ed
number o shares are issued
9) &ompany@s oer to sell the assets at the lowest rate
:) 'one
/0* "am "dmi $ima Eo?ana5 a Social Security insurance
Scheme or rural landless household introduced by union
government on /nd ,ctober /00;* (he scheme
administered byS
6) +#&
/) G#&
8) '#&
9) 3#&
:) ("(" "#G
/6* "im o Swavalamban isS
6) (o encourage the people rom the unorganised sector to
voluntarily save or their retirement
/) (o encourage the people to see% educational courses
through distance education system
8) (o as% the 'on.organised sector people
to boycott their wor% and ?oin in the government service
9) (o encourage the house hold sector to save money
:) 'one
//* ,peration Ganga Prahar relates toS
6) central government initiative to plant trees on the ban%s
o Ganga River
/) banning the use o motor boats by piligrims in Ganga
river
8) central government initiative to clean ganga river with
the aid o local people
9) operation o "rmy to demolish the unauthorized
construction o $uildings on the ban%s o Ganga River
:) rescue operation o "rmy to rescue the stranded pilgrims
in 3ttara%hand
/8* 'ew chairman o +#& is***S
6) 3*D* Sinha
/) (*S* !i?ayan
8) Dalyan Singh
9) S*D* Roy
:) 'one
/9* 3nion Railway minister isS
6) Malli%ar?un Dharge
/) "mbi%a Soni
8) Dapil Sibal
9) &*P* Hoshi
:) Raman Singh
/:* #R'SS.6" isS
6) Russia@s reusable satellite
/) 3S"@s sub sonic missile
8) #reland@s new sea port
9) #ndian Regional 'avigation Satellite System
:) South "rica and #ndia Hoint venture o new solar car
/2* +argest ive emerging economies G.: include $razil5
&hina5 #ndia5 Me1ico andS
6) 3S"
/) South "rica
8) Sri +an%a
70
9) Hapan
:) Pa%istan
/;* (ianhe./ is the super computer developed byS
6) Russia
/) #ndia
8) Hapan
9) (hailand
:) &hina
/<* "s per the report o 2<th round o 'ational Sample
Survey ,ice I'SS,) released on /0 Hune /0685 What is
the average monthly per capita e1penditure IM&PE) o the
poorest o the poor in the countryS
6) Rs*;00*:0 in urban areas and Rs* :/6*99 in rural areas
/) Rs*200*:0 in urban areas and Rs* 9/6*99 in rural areas
8) Rs*;00*00 in urban areas and Rs*6/6*99 in rural areas
9) Rs*6000 in urban areas and Rs* :00 in rural areas
:) Rs*<:0 in urban areas and Rs*900 in rural areas
/=* $y which year5 #ndia surpass &hina to become most
populous country in the world as per the estimates o
3nited 'ations reportS
6) /0:0
/) /0/<
8) /090
9) /02:
:) /600
80* )etails o 3ttara%hand state given* +ocate the wrong
optionS
6) 3ttara%hand is also reerred as )ev $humi I+and o
Gods)
/) ,n =th 'ovember /0005 it was ormed as /;th state o
Republic o #ndia
8) !i?ay $ahuguna is the present &hie Minister o state
9) 'ainital is the capital o state
:) $adrinath and Dedarnath5 the Cindu@s important pilgrim
destinations are in this state
86* (he rate at which Reserve $an% o #ndia IR$#) borrows
money rom ban%s isS
6) S+R
/) $ase Rate
8) Primary +ending Rate
9) $an% Rate
:) Reverse Repo Rate
8/* Who declares Reverse Repo RateS
6) &entral Government
/) State Government
8) R$#
9 ) SE$#
:) #R)"
88* # the Reverse Repo Rate increases5 then ban%***S
6) unds increase as they never give unds to R$#
/) unds go to overseas
8) has to close business
9) unds decrease5 as ban% lend the unds to R$# due to rate
hi%e
:) 'one
89* # the Reverse Repo Rate increases5 then interest on
loans oer by ban%s usually@
6) decrease
/) become Gero
8) lower than earlier rate o interest
9) increase
:) 'one
8:* Present Reverse Repo rate isS
6) 2*/:A
/) ;*/:A
8) <*/:A
9) /8A
:) 9A
82* #n the R$#@s mid.>uarter monetary policy review
declared on 6;th Hune /0685 R$# seriously concerned
aboutS
6) opening o branches by oreign ban%s
/) customer@s DE& details
8) State governments schemes
9) Rupee all5 e1ternal sector ris%s and elevated ood
inlation
:) Poverty in top 9 metros in the slum areas
8;* "s per the "nnual monetary policy statement /068.
/069 announced on 8 May /0685 which o the ollowing
$R#&S nations showed the accelerated growth during
/06/S
71
6) South "rica and $razil
/) #ndia and &hina
8) South "rica and &hina
9) &hina and Russia
:) Russia and $razil
8<* "s per the "nnual monetary policy statement /068.
/069 announced on 8 May /0685 R$# pro?ected the growth
o G)P or /068.69 is***S
6) :*;A
/) /*<A
8) :*0A
9) =*0A
:) <*/A
8=* ,n 62 March /0685 a Spice Par% in Mawan area o
Guna district opened in the state o***S
6) 3P
/) $ihar
8) Goa
9) (amilnadu
:) MP
90* Which operation launched by $&&# to restore the
credibility o #P+S
6) ,peration $all
/) ,peration -i1ing
8) ,peration &lean.up
9) ,peration 3mpire
:) ,peration Wic%et
96* (hailand ,pen Grand Pri1 $adminton tournament won
by %*Sri%anth on = Hune /068* Ce belongs to****S
6) Darnata%a
/) (amilnadu
8) Caryana
9) Cimachal Pradesh
:) "P
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Tuesday, 2/ -une 2013
BA&O6&A AWA04&411 30A8!684 "8Cs
6*#nterest payable on savings ban% accounts isS
a) )e.regulated by R$#
b) Regulated by State Governments
c) Regulated by &entral Govt
d) Regulated by R$#
e) Regulated by -inance Minister
/*(he usual deposit accounts o ban%s areS
a) &urrent accounts5 electricity accounts and insurance
premium accounts*
b) &urrent accounts5 post oice savings5 ban% accounts and
term deposit accounts*
c) +oan accounts5 savings ban% accounts and term deposit
accounts*
d) &urrent accounts5 savings ban% accounts and term
deposit accounts*
e) &urrent bill accounts and term deposit accounts*
8*-i1ed deposits and recurring deposits areS
a) Repayable ater an agreed period
b) Repayable on demand
c) 'ot repayable
d) Repayable ater death o depositors
e) Repayable on demand or ater an agreed period as per
ban%@s choice
9*"ccounts are allowed to be operated by che>ues in
respect oS
a) $oth savings ban% accounts and i1ed deposit accounts*
b) Savings ban% accounts and current accounts*
c) $oth savings ban% accounts and loan accounts*
d) $oth savings ban% accounts and cash accounts only*
e) $oth current accounts and i1ed deposit accounts*
:*Which o the ollowing is correct statementSa)'o interest
is paid on current deposit accounts*
b)#nterest is paid on current accounts at the same rate as
term deposit accounts*
c) (he rate o interest on current accounts and savings
accounts are the same*
d) 'o interest is paid on any deposit by the ban%*
e) Savings deposits are the same as current deposits*
72
2*$an%ing services delivered to a customer by means o a
computer control system that does not directly involve
ban%s branch is calledS
a) 3niversal ban%ing
b) !irtual ban%ing
c) 'arrow ban%ing
d) $ric% 4 Mortal ban%ing
e) 'one
;*-inancial inclusion means provision o Sa) -inancial
services namely payments5 remittances5 savings5 loans and
insurance at aordable cost to persons not yet given the
ban%
b) Ration at aordable cost to persons not yet given the
same
c) Couse at aordable cost to persons not yet given the
same
d) -ood at aordable cost to persons not yet given the same
e) Education at aordable cost to persons not yet given the
same
<* When a ban% returns a che>ue unpaid5 it is calledSa)
Payment o the che>ue
b) )rawing o the che>ue
c) &anceling o the che>ue
d) )ishonour o the che>ue
e) (a%ing o the che>ue
=*Who is the &hairman o the committee constituted by
R$# to study issues and concerns in the Micro -inance
#nstitutions IM-#) SectorS
a) EC Malegam
b) )r* D& &ha%raborty
c) &* Rangra?an
d) M* )amodaran
e) 3sha (horat
60*Which o the ollowing types o accounts are %nown as
@)emat "ccounts@S
a) "ccounts which are Gero $alance
b) "ccounts which are opened to acilitate repayment o a
loan ta%en rom the ban%* 'o other business can be
conducted rom there
c) "ccounts in which shares o various companies are
traded in electronic orm
d) "ccounts which are operated through internet ban%ing
acility
e) 'one o the above
66*'E-( meansS
a) 'ational Electronic -unds (ranser
b) 'egotiated Eicient -und (ranser system
c) 'ational Eicient -und (ranser solution
d) 'on Eective -und (ranser system
e) 'egotiated Electronic -oreign (ranser system*
6/*)istribution o insurance products and insurance
policies by ban%s as corporate agents is %nown asS
a) General insurance
b) 'on lie insurance
c) $ancassurance
d) #nsurance $an%ing
e) )eposit #nsurance
68*#n respect o partnership business5 ++P stands orO
a) +ocal +abour Promotion
b) +ow +abour Pro?ects
c) +imited +oan Partnership
d) +onger +iability Partnership
e) +imited +iability Partnership
69*What is a stale che>ueS
a) " che>ue issued without drawer@s signature*
b) " che>ue with only signature o the drawer*
c) " che>ue which has completed 8 months rom the date
o its issue*
d) "ny one o the above*
e) 'one
6:*#nterest on savings ban% account is now calculated by
ban%s onS
a) Minimum balance during the month
b) Minimum balance rom ;th to last day o the month
c) Minimum balance rom 60th to last day o the month
d) Ma1imum balance during the month
e) )aily product basis
62*+argest shareholder Iin percentage shareholding) o a
'ationalized ban% is S
a) R$#
b) '"$"R)
73
c) +#&
d) Govt o #ndia
e) #$"
Answers
6) a7 /) d7 8) a7 9) b7 :) a7 2) b7 ;) a7<) d7 =) a7 60) c7
66) a7 6/) c7 68) e7 69) c7 6:) e7 62) d
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/068 6 commentO
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A4&40A; AWA04&411 7'0 0B6 A1161!A&!1
4EA"
6* Who has the sole right to mint coins in #ndiaS
6) R$#
/) MM(&
8) Government o #ndia
9) S$#
:) )epartment o Post
/* Whose signature appears on coinsS
6) President o #ndia
/) R$# governor
8) -inance Secretary
9) R$# deputy governor
:) &oins do not bear the signature
8* Government o #ndia withdrawn coins o denomination
o /: paise and below rom circulation with eect rom*****S
6) 80 Huly /066
/) 80 Hune /066
8) 80 Hune /06/
9) 80 Hune /060
:) 6 Hune /068
9* Who was appointed as the President o the "sian
)evelopment $an% I")$) by the $oard o Governors at
'ew )elhi on /; "pril /068S
6) Him Eong Dim
/) &hristine +egarde
8) (a%ehi%o 'a%ao
9) Mario )raghi
:) 'one
:* (o whom the world ban% granted a concessional loan o
W600 million or the implementation o low.income
housing schemeS
6) C)-&
/) #&#&#
8) S$#
9) R$#
:) 'ational Cousing ban%
2* ,n 9 "pril /0685 D*C*Muniyappa5 the Minister o State
I#ndependent &harge) o the Ministry o Micro 5 Small and
Medium Enterprises IMSME) given the statement* Cis
statement does not include*****
6) MSME sector contribute =A o G)P
/) #t accounts or around 9:A o the manuacturing output
8) #t contributes 82A o total value o e1ports
9) (he sector has been growing consistently above 60A or
the last ive years
:) (he sector will be removed rom the Priority Sector
lending
;* Who was appointed as the chairman to suggest the
measures or enhancing MSME e1ports recentlyS
6) Ratan ("("
/) "bhi?ith Sen
8) R*S*Gu?ral
9) Monte% Singh "hluwalia
:) "nand Sinha
<* (he #ndian +ie "ssurance &ompanies "ct was the irst
statutory measure to regulate lie business in #ndia* #t was
passed in ******S
6) 6=/:
/) 6=:2
8) 6=9;
9) 6=89
:) 6=6/
=* 3nion government put the e1port target o ****** billion or
the current inancial year /068. 69S
6) W 8/:
74
/) W 820
8) W 800*2
9) W 9:0
:) W 6:0
60* 3nder whose chairmanship5 the Group o Ministers
IGoM)was set up to ma%e a law to provide or the
independence o the &entral $ureau o #nvestigation I&$#)
and its unctional
autonomyS
6) &hidambaram
/) Ran?ith Sinha
8) "lo% Hoshi
9) $i%ram singh
:) S*"*#brahim
66* 3nion government on 6; "pril /068 declared to
enhance the installed capacity o renewable energy o
/:50000 MW to ::5000 MW by *******S
6) /06;
/) /06<
8) /06=
9) /0/:
:) /06;
6/* Which #ndian origin writer received the inaugural
Physics ?ournalism Prize sponsored by the #nstitute o
PhysicsI#,P) and the science and (echnology -acilities
&ouncil in WashingtonS
6) "bdul %alam
/) Ra?a Ramanna
8) "nil "nanthaswamy
9) Dasturi Rangan
:) &*R*Rao
68* Which nation ?oined as a dialogue partner in the
Shanghai &ooperation ,rganisation IS&,) on /2 "pril
/068S
6) #ndia
/) 3S"
8) (ur%ey
9) 3D
:) #srael
69* 9:th session o the #ndian +abour &onerence
concluded on 6< May /068 atS
6) Mumbai
/) Dol%ata
8) Pune
9) 'ew )elhi
:) 'one
6:* -actoring meansS
6) business o buying trade debts at a discount and ma%ing
a proit when debt is realized
/) giving loans to actories by the commercial ban%s at
concessional rates
8) banning the ban%s not to give loans to actories at lower
rate o interest
9) buying o customers assets whenever he did deault in
the payment o money
:) 'one
62* (rac%5 +ane5 Curdles5 Shot.put5 )iscuss (hrow5
Cammer (hrow5 (riple Hump5 Cigh Hump are the terms
used inS
6) &hess
/) !olley $all
8) -oot $all
9) &ycling
:) "thletics
6;* Eoungest player to play an English &ounty match isS
6) Canuma !ihari
/) (M Srivastava
8) Phiillips Rod
9) (im Mody
:) Matthew -isher
6<* (he Present Statutory +i>uidity Ratio IS+R) isS
6* /9A
/* /;A
8* /0A
9* /<A
:* /8A
6=* Staglation meansS
6) +ow inlation combined with high unemployment and
slow economic growth
/) Persistent high inlation combined with high
employment and ast economic growth
8) +ow inlation combined with high employment rate and
ast paced economic growth
9) Persistent high inlation combined with high
75
unemployment and slow economic growth
:) 'one o above
/0* &onsider the ollowing statementsS
i) Roshni is the s%ill development scheme launched on ;
Hune /068 by the ministry o Rural )evelopment
ii) #t aims to provide training and employment to youth in
the 60.8: years age group
iii) #t was launched in /9 'a1al.aected districts
iv) #t is a 600.crore pro?ect and is unded by union and state
governments5 with the union providing ;:A o the unding
Which o the above statements isFare correctS
6) ii iii
/) ii iv
8) i ii iii iv
9) ii
:) 'one
/6* #ndia@s si1th commodity e1change which started its
operations on 6= "pril /068S
6) 'SE
/) M&B
8) 'M&E
9) 3&B
:) "&E
//* &onstruction o country@s irst ully private Greenield
airport commenced inS
6) Gaya I$ihar)
/) Pune IMaharashtra)
8) Darai%al IPuducherry)
9) Sivaganga I(amilnadu)
:) Somnath IGu?arat)
/8* Where is the head oice o #nsurance Regulatory
)evelopment "uthorityS
6) Dol%ata
/) Mumba
8) Cyderabad
9) &hennai
:) )elhi
/9* (he correct statement isS
6) )uring the visit o Man Mohan singh in (hailand5 a
sapling o the sacred bodhi tree in $odh Gaya given as a
git to (hailand %ing $humibol "dulyade?
/) W :*/ billion humanitarian und will be given by 3', to
Syria
8) World@s largest concentrated solar power plant launched
by 3"E by name Shams #
9) -rom 6 "pril /0685 Myanmar allowed the circulation o
private newspapers ater :0 years
:) "ll o above
/:* Pic% the wrong combinationS
6) &hie Election &ommissioner. Satyendra Mishra
/) &hie o the 'aval Sta."dmiral )evendra Dumar Hoshi
8) Minister o &ommerce and #ndustry. "nand Sharma
9) &hie Minister o Darnata%a . Siddaramaiah
:) 3PS& &hairman . )*P*"garwal
/2* Who was re.elected as the chairman o #$"I#ndian
$an%s "ssociation) or the
/068.69 tenureS
6) &handa Docchar
/) 3r?ith Patel
8) D*R*Damath
9) "ravind Mayaram
:) 'one
/;* ,n 68 Hune /0685 R$# slapped ine on new generation
private ban%s* (he main reason is orS
6) not opening o 'o -rill accounts or $P+ amilies
/) not opening o "(M in onsite premises as promised by
-inance minister in the budget
8) not issuing new currency notes to customers
9) giving o advertisements about personal loans in news
papers
:) violating rules o DE& IDnow Eour &ustomer)
/<* +ea turns EellowO the Suis o "wadh released by
Camid "nsari* #t was edited byS
6) Cashim "mir "li
/) Muzaar "li
8) Gulam 'abi "zad
9) (aslima 'asreen
:) 'one
/=*3SS) stands orS
6) 3nstructured Supplementary Service )ata
/) 3niversal Supplementary Service )ata
8) 3nstructured Standard Service )ata
76
9) 3nstructured Supplementary Service )airy
:) 3nstructured Supplementary Stolen )ata
80* World ,ceans day celebrated onS
6) < "pril
/) < May
8) < Hune
9) < -ebruary
:) < Hanuary
86* Pages stained with blood5 Ramayana rom Ganga to
$rahmaputra5 Melodies and Guns5 (he Moth.Eaten
Cowdah o the (us%er5 (he shadow o Dama%hya5 (he
Man rom &hinnamasta are the wor%s oS
6) #ndira Goswami
/) 'ehru
8) Gandhi
9) Saro?ini 'aidu
:) &hetan $hagath
8/* #n which country $an% o $aroda opened its 600th
overseas branch on /< March /068S
6) 3S"
/) 3D
8) South "rica
9) )ubai
:) "ustralia
88* Savings account become inoperative5 iS
6) cash deposited in another branch not intimated to the
parent branch
/) amount withdrawn by "(M e1ceeds Rs*:05000
8) net ban%ing done on 86st o the month
9) not operated at all during certain period as per the ban%
rules
:) 'one
89* +a%ulish Eoga 3niversity is the irst Eoga university in
#ndia5 inaugurated on /8 May /068 atS
6) Mumbai
/) "hmadabad
8) 'ew )elhi
9) Patna
:) Caridwar
8:* Which global rating agency revised #ndia@s sovereign
credit outloo% rom negative to
stable on 6/ Hune /068S
6) S4P
/) &R#S#+
8) -itch
9) Moody
:) #&R"
82* 66;th &onstitutional "mendment bill relates toS
6) S&5 S( reservation in promotions
/) +o%pal and +o%ayu%ta
8) Goods and services (a1
9) increase the retirement age o high court ?udges
:) change o the entry o ,riya +anguage to ,diya in the
<th Schedule o &onstitution o #ndia
8;* "ssom Ratna "ward or the year /06/ conerred onS
6) #ndira Goswami I%nown by her pen name Mamoni
Raisom Goswami)
/) Surendranath Medhi I%nown by his pen name Saurav
Dumar &haliha)
8) (arun Gogoi I&hie minister o "ssam)
9) Hana%i $allav Patnai% IGovernor o "ssam)
:) Praulla Dumar Mahanta IPresident o the "som Gana
Parishad)
8<* (he #nternational Wor%shop on Green 'ational
"ccounting held on : "pril /068 atS
6) Mumbai
/) Dol%ata
8) Dochi
9) Pune
:) 'ew )elhi
Answers.
6.85 /.:5 8./5 9.85 :.:5 2.:5 ;.85 <.:5 =.65 60.6
66.65 6/.85 68.85 69.95 6:.65 62.:5 6;.:5 6<.:5 6=.95
/0.8 /6.95 //.85 /8.85 /9.:5 /:.65 /2.85 /;.:5 /<./5
/=.65 80.8 86.65 8/.95 88.95 89./5 8:.85 82.65 8;.65
8<.:
6* $y increasing repo rate5 the economy may observe the
ollowing eects XXXXXX
a) Rate o interest on loans and advances will be costlier*
b) #ndustrial output would be aected to an e1tent*
77
c) $an%s will increase rate o interest on deposits*
d) #ndustry houses may borrow money rom oreign
countries*
e) "ll o these*
/* #ncreased interest rates5 as is e1isting in the economy at
present
willXXXXXXX
a) +ead to reduction in borrowings
b) +ead to lower G)P growth*
c) Mean higher cost o raw materials*
d) Mean lower cost o raw materials*
e) Mean higher wage bill*
8* Which o the ollowing schemes is launched to provide
pension to people in unorganized sectors in #ndiaS
a) Swabhiman
b) Heevan )hara
c) Heevan Dalyan
d) "SC"
e) Swalamban
9* " che>ue returned or insuiciency o unds* Payee will
have right to notice and approach court o law or ?ustice
under section 68< o which actS
a) #ndian Penal &ode
b) 'egotiable #nstrument "ct
c) &riminal Procedure &ode
d) Payment and Settlement "ct
e) #ndian &ontract "ct
:* Mr* Ra?endra had illed a complaint with $an%ing
,mbudsman but is not satisied with the decision* What is
the ne1t option beore him or getting his matter resolvedS
a) Write to the &M) o the $an%*
b) -ile an appeal beore the -inance Minister*
c) -ile an appeal beore the $an%ing ,mbudsman again*
d) -ile an appeal beore the )y* Governor R$#*
e) Simply close the matter as going to court involves time
and money*
2* Which o the ollowing is an e1ample o -inancial
assetsS
a) 'ational Saving &ertiicate
b) #nrastructure $onds
c) #ndira !i%as Patra
d) Drishi !i%as Patra
e) "ll o these
;* $an% branches which can underta%e oreign e1change
business directly are %nown asO
a) "uthorized dealers
b) -oreign dealers
c) ,verseas branches
d) "pproved dealers
e) E1change branches
<* #nsurance cover or ban% deposits in our country is
provided by XXXX
a) S$#
b) Govt o #ndia
c) G#&
d) +#&
e) )#&G&
=* (he -inancial +iteracy does not include which o the
ollowingS
a) Cow to invest the unds
b) Cow to use the limited unds careully
c) Cow to minimize the ris%s
d) Cow to reinvest the money earned
e) 'one o these
60* @")$ Reer to
a) "medical )evelopment $an%
b) "medical depository $ureau
c) "dditional )ebit $alance
d) ,nly a4b
e) "sian )evelopment ban%
66* When a ban%er tal%s about &)R5 what is he tal%ing
aboutS
a) &orporate )ebt Restructuring
b) &orporate )ebt Rollover
c) &ompany )ebt Rollover
d) &orporate )eposit Restructuring
e) &ompany )eposit Restructuring
6/* E1pand the term "+M as used in $an%ingF-inance
sectorS
a) "sset +iability Management
78
b) "sset +iability Maturity
c) "sset +iability Mismatch
d) "sset +iability Manpower
e) "sset +iability Maintenance
68* &ash Reserve Ratio I&RR) and Statutory +i>uidity
Ratio IS+R) are terms most closely related to which o the
ollowing industriesF mar%etsS
a) &apital Mar%et
b) $an%ing industry
c) &ommodities mar%et
d) Money Mar%et
e) Mutual und
69* What is the ma1imum period or which domestic term
deposits are normally accepted by the ban%s in our
countryS
a) 8 yr
b) : yr
c) ; yr
d) 60 yr
e) 6/ yr
6:* # you wish to purchase some 3S )ollars or your travel
abroad5 you should approachS
a) (he ministry o inance
b) (he 3S Embassy
c) "ny $an% $ranch authorized to do such activity
d) (he Reserve $an% o #ndia
e) E1ternal "airs Ministry
62* What does the letter @+@ stands or in the term +"-
commonly used in inancialFeconomic newsS
a) +i>uidity
b) +east
c) +iabilities
d) +ong
e) +i>uid
6;* Which o the ollowing is not classiied as a
&ommercial $an%S
a) Public Sector $an%
b) -oreign $an%
c) Private Sector $an%
d) Regional Rural $an%
e) 3rban &ooperative $an%
6<* Which o the ollowing is not the name o the a
$an%ing ,rganizationS
a) C)-&
b) #)$#
c) EES
d) SE$#
e) #&#&#
6=* Money laundering means XXXXXa) Ciding o income
source mainly to avoid income ta1
b) Money ac>uired rom undisclosed sources and deposited
in oreign ban%s
c) Money ac>uired rom undisclosed sources and deposited
in oreign ban%s
d) Process o conversion o money obtained illegally to
appear to have originated rom legitimate sources to
convert blac% money into white money*
e) Money ac>uired rom drug traic%ing
/0* Monetary Policy as an arm o the economic policy is
administered by XXXXX
a) Government o #ndia
b) R$#
c) S$#
d) Govt o the respective states
e) 'one
/6* Which o the ollowing is not a primary unction o a
$an%S
a) Granting loans
b) &ollecting che>uesF drats o &ustomers
c) "rranging !#S" or students or abroad education
d) #ssuing ban% drats
e) Selling GoldFSilver &oins*
//* Reserves which can act as a li>uidity buer or
&ommercial $an%s during crisis times are XXX
a) &"R b) &RR
c) &"R 4 &RR
d) &RR 4 S+R
e) S+R
Answers.
6) a7 /) c7 8) e7 9) b7 :) d7 2) a7 ;) a7 <) e7 =) e7 60) e7
79
66) a7 6/) a7 68) b7 69) d7 6:) c7 62) a* 6;) e7 6<) d7 6=) d7
/0) b7
/6) c7 //) d*
BA&O6&A AWA04&411 30A8!684 "8Cs
6* What is #ndia@s ran% in this year@s Global Peace #nde1
IGP#) that measured peace in 62/ countriesS
6) 696
/) 660
8) 68/
9) 689
:) 6:/
/* (he Reserve $an% o #ndia imposed ine on which o the
ollowing private sector ban%s or violation o DE& IDnow
Eour &ustomer) norms in Hune /068S
6) "1is $an%
/) C)-& $an%
8) #&#&# $an%
9) $oth 6 and /
:) "ll 65 / and 8
8* Raael 'adal o Spain won the -rench ,pen Men@s +awn
(ennis Grand Slam title or a record <th time* Whom did he
deeat in the inal in Paris in Hune /068S
6) Roger -ederer
/) 'ova% )?o%ovic
8) )avid -errer
9) "ndy Murray
:) Ho Wilred (songa
9* Who was appointed the 3nited States 'ational Security
"dviser in Hune /068S
6) Samantha Power
/) Hohn Mc&ain
8) +indsey Graham
9) Susan Rice
:) Hohn Derry
:* Who won her second -rench ,pen Women@s tennis title
in Paris on Hune <5 /068S
6) Maria Dirilen%o
/) Maria Sharapova
8) Helena Han%ovic
9) !ictoria "zaren%a
:) Serena Williams
2* Who was re.elected as the &hairman o the #ndian $an%s@
"ssociation I#$") or /068.69 tenure in Hune /068S
6) "ditya Puri
/) Pratip &haudhuri
8) Rana Dapoor
9) D*R*Damath
:) $*"*Prabha%ar
;* (he head>uarters o European 3nion is situated in which
o the ollowing countriesS
6) 3D /) Germany 8) -rance
9) $elgium :) 'etherlands
<* (he name @$luetooth@ gets its name rom a 60th century
%ing oS
6) &hina /) )enmar% 8) Greece
9) (hailand :) Spain
=* $aglihar )am is constructed on the riverS
6) &henab /) Raavi 8) #ndus
9) Sutle? :) $eas
60* Which country will host both the World &up -ootball
/069 and ,lympics /062S
6) Russia /) 3S" 8) $razil
9) Hapan :) Germany
66* $harat Ratna was instituted inS
6) 6=:9 /) 6=:: 8) 6=26 9) 6=2= :)
6=20
6/* (he present Pope chosen in March /068 hails romS
6) &anada /) Me1ico 8) $razil
9) "rgentina :) 3ruguay
68* @Paradise Regained@ was written byS
6) Hohn Deats /) &harles )ic%ens
8) Hohn Milton 9) ,liver Goldsmith
:) +ord $yron
69* @&RE@ is an 'G, which wor%s or the welare oS
6) Senior citizens
80
/) &ancer patients
8) War victims
9) &hildren
:) "#)S patients
6:* (he 3SP o a &urrent account isS
6) Cigh minimum balance
/) 'o restrictions on transactions
8) 'o interest payable
9) Restricted deposits
:) 'one o these
62* +eads or Come +oans can be obtained romS
6) (raders /) (rusts 8) $uilders
9) &ooperative societies :) 'one o these
6;* (he target group or SME loans isS
6) Students /) Cousewives
8) Entrepreneurs 9) Salaried persons
:) Government underta%ings
6<* Which o the ollowing terms is used in the ield o
inance and ban%ingS
6) Metabolism /) Genetic process
8) &entriugal orce 9) )ebt instrument
:) E1perimental error
6=* (he 'ational Social Security -und I'SS-) helps which
o the ollowing groups o societyS
6) $an% employees
/) &entral government employees
8) Wor%ers in the unorganized sector
9) Wor%ers in the te1tile industry
:) Women employees
/0* Which o the ollowing tools is used by the R$# to
control credit and monetary situations o the mar%etsS
6) R(GS /) 'E-( 8) E&S
9) &RR :) $alance o trade
/6* Which o the ollowing countries is located in South
"mericaS
6) South Sudan
/) South Dorea
8) 3ganda
9) "ngola
:) 3ruguay
//* Which o the ollowing is the currency o MyanmarS
6) (a%a
/) )inar
8) Dyat
9) Een
:) )ollar
23. Which of the followin% terms is not used in the field
of 4conomics(
6) 'et income
/) &ost o pro?ect
8) -low o und
9) $alance sheet
:) &old chain
/9* Reverse Mortgage scheme is designed %eeping which
o the ollowing groups o society in considerationS
6) )eense personnel
/) Senior citizens
8) Eoungsters who ?ust started earning
9) )ependent women
:) 'one o these
2). What happens when an economy is in recession(
6) G)P growth slows down
/) 3nemployment rate rises
8) $an%ruptcies rise
9) $oth 6 and /
:) "ll 65 / and 8
2*. 0etail investors means which of the followin% types
of stock market investors(
6) Mutual unds
/) &orporate bodies
8) Promoters o companies
9) #ndividuals
:) -##s
2+. Which of the followin% is not an a%ricultural
commodityS
6) &ardamom
/) &umin
8) Garlic
81
9) (urmeric
:) Sulphur
Answers.
6) 67 /) :7 8) 87 9) 97 :) :7 2) 97 ;) 97 <) /7 =) 67 60)87
66) 67 6/) 97 68) 87 69) 97 6:)/7 62) 87 6;) 87 6<) 97 6=) 87
/0) 97 /6) :7 //) 87 /8) :7 /9) /7 /:) :7 /2) 97 /;) :7
30A8!684 CB41!6'&1
1. Bankin% 'mbudsman is appointed by.
"* Reserve $an% o #ndia
$* Government o #ndia
&* &oncerned State Govt5 where R$# oice is located
)* -inance Minister
E* 'one o the above
2. Before approachin% 'mbudsman what should the
complainant do(
"* (a%e up the matter with State Government
$* (a%e up the matter with concerned $an% $ranch within
80 days o cause o action
&* "pproach +o% "dalat
)* &an directly approach $an%ing ,mbudsman
E* "ny o the above
3. What is the ma5imum period within which the
a%%rieved customer can approach
'"BB1A"A&(
"* Within / year
$* Within 6 year
&* Within one month
)* 'o such limitation period
E* 'one o the above
$. What is the ma5imum amount for which the Award
8an be %iven by '"BB?1"A&
"* Rs 65005000
$* Rs /5005000
&* Rs :5005000
)* Rs 605005000
E* 'o limit
). Who will be appointed as Bankin% 'mbudsman(
"* &GM or GM o R$#
$* )eputy Governor o R$#
&* Governor R$# # is an e1.oicio ,mbudsman
)* -inance Secretary
E* 'one o the above
*. OQ8 norms are liberalized in case of followin%
accounts.
"* &urrent "ccount
$* Savings "ccount
&* (erm )eposit "ccount
)* 'o -rills "ccount
E* 'one o the above*
+. !he OQ8 does not include obtainin% the followin% .
"* #dentity Proo
$* "ddress Proo
&* &ustomer Proile
)* !ehicle details o the customer
E* 'one o the above
,. A"; 1tands for
"* "nti Monitory +imit
$* "nti Money +aundering
&* "lways money laundering
)* "nytime Money +aundering
E* 'one o the above
/. OQ8 LOnow Qour 8ustomer is to identify the
8ustomer whereas A";: Anti "oney
;aunderin% is to identify the 1ource of 6ncome.
"* -alse
$* (rue
&* (rue only in case o small amounts
)* 'ot necessary in all cases
E* "ny o the above
12. 6f a ?epositor is not a 1enior 8itizen and his
!a5able 6ncome is within the e5empted
limits then he has to submit :::::::::::::::: to the Bank
for not deductin% ta5 at source
"* -orm 6:G
$* -orm 6: C
&* -orm 26
)* -orm 20
E* 'one o the above
11. 6n case the prospective customer whose income
comes from only A%riculture sources
then he has to %ive a declaration in 7orm *1.
"* (rue
$* -alse
&* Ce has to submit orm 20
)* 'o such re>uirement
E* 'one o the above
12. &omination is available for
"* )eposit accounts
$* Sae custody articles
&* +oc%ers*
)* Partnership irms
E* ,nly " $ &
13. &omination can be %iven only for.
"* #ndividuals
$* Hoint #ndividuals
&* +imited &ompanies
)* ,nly "5 and $
E* 'one o the above
1$. "oney deposited at a bank that cannot be
withdrawn for at fi5ed period of time is known
as a XXXXXO
"* (erm deposit
82
$* &hec%ing "ccount
&* Saving $an% deposit
)* 'o -rills "ccounts
E* &urrent deposit
1). With reference to a che9ue which of the followin% is
the Jdrawee bankK(
"* (he ban% that collects che>ue*
$* (he payeeMs ban%*
&* (he endorseeMs ban%*
)* (he ban% o the )rawer o the &he>ue
E* 'one o the above
1*. Base 0ate is the rate below which no Bank can allow
their lendin% to anyone.
Who will fi5 this JBase 0ateK for Banks(
"* #ndividuals $an%s $oard
$* Ministry o &ommerce
& Ministry o -inance
d) R$#
e) #nterest Rate &ommission o #ndia
1+. 45pand &3A
"* 'o Provision "ccount
$* 'on Perorming "sset I"n asset which ceases to
generate income)
&* 'o Proit "ccount
)* 'on.Personal "ccounts
E* 'one o the above
1,. 7inance "inistry advised 0B6 to allow common
A!"s to be owned and mana%ed by &on
Bankin% 6nstitutions. 1uch A!"s are called.
"* '$-& "(Ms
$* , Site "(Ms
&* (hird Party "(Ms
)* White +abel "(Ms
E* 'one o the above
1/. An 481 transaction %ets bounced and you are
unable to recover your money from your
customer. Bnder which Act criminal action can be
initiated(
A. #ndian Penal &ode
$* 'egotiable #nstrument "ct
&* &riminal Procedure &ode
)* Payment and Settlement "ct
E* #ndian &ontract "ct
=&ote. 481 used for 4lectronic 8learin% of che9uesL
?ebit 481 for 8ollection of loan
installments> and 8redit 481 for payments like
?ividends 1alaries etc.
22. What is 8!1
"* &ash (ransaction system Iin ban%s)
B. &he>ue (ranser System
8. &he>ue (runcation System
?. &ash (ranser System
4. 'one o the above
=8!1 mean 8he9ue !runcation 1ystem L wherein
instead of sendin% che9ues physically
to clearin% house only scanned ima%es will be sent. 6t is
also called ima%e based
clearin%. !his system already started in many states of
6ndia. !his reduces the collection
of che9ues time considerably and is advanta%eous to the
customers>
A&1W401
21 22 23 2$ 2) 2* 2+ 2, 2/ 12
" $ $ ) " ) ) $ $ "
11 12 13 1$ 1) 1* 1+ 1, 1/ 22
" E ) " ) " $ ) ) &
BA&O6&A AWA04&411
04140P4 BA&O '7 6&?6A
Reserve $an% o #ndia was established on 06*09*6=8: under
R$# "ct 6=89 on the
recommendations o Hohn Cilton Eoung commission 6=/2
IRoyal &ommission on #ndian
&urrency and -inance)* R$# is &entral $an% o our country
and it is nationalised w*e* 6st
Hanuary5 6=9=* #nitially it was a shareholdersM ban% which
was ta%en over by the &entral
Government under Reserve $an%I(ranser o Public
,wnership) "ct 6=9< with a paid up
capital o Rs : &r* R$#Ms &entral ,ice is in Mumbai*
7B&8!6'&1 '7 0B6.
a. 6ssuance of currency. R$# is the sole agencyFauthority
in #ndia to issue ban% notes
under signature o Governor5 R$#* $an% 'ote means Rs*/
and above* I,ne rupee
note and all coins will be issued by &entral Government*
,ne rupee note will be
signed by -inance Secretary) &oins will be minted at our
stations i*e* Mumbai5
Dol%ata5 Cyderabad and 'oida
b. Banker to the Aovernment. Manages public debt and
transacts government
business*
c. Bankers bank. &ontrols the ban%s and acts as a lender
o last resort by providing
inancial assistance in various ways
d. 8ontroller o credit to control inlation and money
supply
e. #t ensures li>uidity position o ban%s through
maintenance o &RRFS+R
re>uirements*
&ationalization of Banks
" signiicant milestone in #ndian $an%ing happened in the
late 6=20s when the
government nationalized5 on 6=th Huly5 6=2= 69 ma?or
commercial #ndian $an%s5 ollowed by
83
nationalization o 2 more commercial #ndian ban%s in 6=<0*
(he stated reason or the
nationalization was more control o credit delivery* "ter
this5 until the 6==0s5 the
nationalized ban%s grew at a leisurely pace o around 9A*
'ew $an% o #ndia was
amalgamated with Pun?ab 'ational $an% in 6==8*
)uring 6==0 and /000 +iberalisation5 Privatisation and
Globalisation too% place and
ban%ing industry pic%ed up a lot in its business*
(echnological advancement started by
migrating rom manual to computerisation o records*
'arasimhanMs &ommitee
recommendations on prudential norms or 'on Perorming
"ssets were adopted which
resulted in healthy growth o ban%s asset portolio*
"ter /000 till date ban%s growth started galloping through
,nline $an%ing5
development o "lternate delivery channels li%e "(M5 'et
$"'D#'G5 Mobile $an%ing5 etc*
What is a repo rate(
Repo rate is the rate at which ban%s borrow unds rom the
R$# to meet the gap
between the demand they are acing or money Iloans) and
how much they have on hand to
lend* # the R$# wants to ma%e it more e1pensive or the
ban%s to borrow money5 it increases
the repo rate7 similarly5 i it wants to ma%e it cheaper or
ban%s to borrow money5 it reduces
the repo rate*
What is a reverse repo rate(
(his is the e1act opposite o repo rate* (he rate at which
R$# borrows money rom the
ban%s Ior ban%s lend money to the R$#) is termed the
reverse repo rate* (he R$# uses this
tool when it eels there is too much money loating in the
ban%ing system
# the reverse repo rate is increased5 it means the R$# will
borrow money rom the
ban% and oer them a lucrative rate o interest* "s a result5
ban%s would preer to %eep their
money with the R$# Iwhich is absolutely ris% ree) instead
o lending it out Ithis option
comes with a certain amount o ris%) &onse>uently5 ban%s
would have lesser unds to lend to
their customers* (his helps stem the low o e1cess money
into the economy
1everse repo rate signi"ies t!e rate at *!i#! t!e #entral
bank absorbs
li2uidity "rom t!e banks, *!ile repo signi"ies t!e rate at
*!i#! li2uidity is
in3e#ted.
What is bank rate(
(his is the rate at which R$# lends money to other ban%s
Ior inancial institutions (he
ban% rate signals the central ban%Ms long.term outloo% on
interest rates* # the ban% rate moves
up5 long.term interest rates also tend to move up5 and vice.
versa*
$an%s ma%e a proit by borrowing at a lower rate and
lending the same unds at a higher rate
o interest* # the R$# hi%es the ban% rate Ithis is currently =
per cent)5 the interest that a ban%
pays or borrowing money Iban%s borrow money either
rom each other or rom the R$#)
increases* #t5 in turn5 hi%es its own lending rates to ensure it
continues to ma%e a proit*
What is call rate(
&all rate is the interest rate paid by the ban%s or lending
and borrowing or daily und
re>uirement* Since ban%s need unds on a daily basis5 they
lend to and borrow rom other
ban%s according to their daily or short.term re>uirements
on a regular basis*
What is 800(
&ash Reserve Ratio5 reers to a portion o deposits Ias cash)
which ban%s have to
%eep-maintain with the R$#* (his serves two purposes* #t
ensures that a portion o ban%
deposits is totally ris%.ree and secondly it enables that R$#
control li>uidity in the system5
and thereby5 inlation by tying their hands in lending
money*
What is 1;0(
$esides the &RR5 ban%s are re>uired to invest a portion o
their deposits in government
securities as a part o their statutory li>uidity ratio IS+R)
re>uirements* What S+R does is
again restrict the ban%Ms leverage in pumping more money
into the economy*
What is selective credit control(
"lso %nown as >ualitative control is used to regulate &ost
and >uantum o credit to selected
sectors5 by stipulating
ZMinimum margin or lending against selected
commodities
Z&eiling on level o credit
ZMinimum rate o interest to be charged on advances
against particular commodities*
3ractice Bits
1. 7unctions of 0eserve Bank are.
a) $an%ers ban%
b) $an%er to Government
c) +ender o last resort
d) &ontrolling inancial re>uirements o ban%s through
RepoFReverse Repo
84
e) "ll the above
2. Now many ?eputy Aovernors will be there in 0B6.
a) 8 b) : c) ; d) 9
e) 'o )eputy Governor will be appointed
3. 0everse 0epo 0ate has the followin% characteristic.
a) $orrowing by R$# rom ban%s
b) $orrowing with government security as collateral
c) Short (erm $orrowing
d) "ll the above
e) 'one o the above
$. 6ndian commercial banks are cate%orised into.
a) Public Sector ban%s b) -oreign $an%s c) Private Sector
$an%s
d) "ll the above e) 'one o the above
). 0e%ional 0ural Banks have been set up with the basic
ob#ective of.
a) Providing credit to semi.urban and urban population
b) Providing deposits acilities to armers
c) Providing credit and deposit acilities to rural areas
d) Providing credit5 deposit and other ban%ing acilities to
people in rural areas
e) 'one o the above
*. !he followin% is a mechanism for in#ectin% li9uidity
by 0B6 to the financial
system.
a) Reverse Repo b) Ci%e in &RR c) Ci%e in interest rate
d) Repo e) 'one o the above
+. ____________ are ;ocal 6nstitutions functionin% like
Banks
a) +ocal "rea $an%s b) #ndigenous $an%s c) Private $an%s
d) -inancial #nstitutions e) "ll the above
,. !he first nationalisation of banks e5ercise was done
on.
a) 6=*0;*6=2= b) 6=*0;*6=;0 c) 6=*0;*6=2;
d) 6:*0<*6=2; e) 'one o the above
/. Now many banks were nationalised 6n the second
phase in 1/,2.
a) : b) 2 c) ; d) 9 e) 6
12. !he Basic criteria that was considered while
nationalisation of banks in 1/*/ was
the liability base of banks is more than.
a) 80 crores or more b) 90 crores or more c) :0 crores or
more
d) 20 crores or more e) 'one o the above
11. Which of the followin% deposits do not attract !?1(
a) -i1ed )eposits b) )eposit Reinvestment )eposits c)
-le1i )eposits
d) &all )eposits e) Recurring )eposits
12. At present the rate of interest paid by 0B6 to
8ommercial Banks on 800 is .
a) 8A b) 9A c) :A d) 'o interest
d) ,nly or above Rs* 6000 crore &RR balance*
13. !he 8ash 0eserve 0atio is to be maintained by
8ommercial Banks in the form of.
a)&ash in hand at branches b) $alance with other ban%s
c)$alance in a special account with R$# d) -unds in the
currency chest
e) "ny o the above options*
1$. 6ncreasin% 8ash 0eserve 0atio from time to time by
0eserve Bank of 6ndia leads to.
a) )ecrease in deposit b) #ncreasing in deposit
b) #ncrease in lendable resources d) )ecrease in lendable
resources*
c) "ny o the above
1). !he interest on "ar%inal 1tandin% 7acility
sanctioned by 0B6 to banks is.
a) Repo rate plus 6A b) Repo Rate plus /A c) Repo Rate
plus 8A
d) ,ne percent less than reverse repo rate e) 'one o the
above
1*. Who was the first %overnor of 0B6(
a) ,sborne Smith b) Hames (aylor c) &*)esh Mu%h
d) $*R*Rao e) 'one o the above
1+. 0B6 was established in 1/3) pursuant to
recommendation of.
a) (he Cilton Eoung &ommission
b) b) "ll #ndia Rural &redit Survey &ommittee
c) Gorawala &ommittee
d) (alwar &ommittee
e) 'one o the above
1,. 'ne rupee note and all coins will be issued by.
a) Reserve $an% o #ndia b) &entral Government
c) &entral and State Governments collectively
d) 'one o the above e) "ll the above
1/. Who will si%n 'ne 0upee &ote(
a) Governor. R$#
b) Governors o concerned state governments
c) -inance Secretary5 Ministry o -inance
d) -inance Minister
e) 'one o the above
22. What is "17(
a) Marginal Standing -acility
b) Micro and Small -inance
c) Medium Size inance
d) Mid (erm Sanction acility
e) 'one o the above
Answers
R 6 / 8 9 : 2 ; < = 60
"ns e d d d d d b a b c
R 66 6/ 68 69 6: 62 6; 6< 6= /0
"ns e d c d a a a b c a
BA&O6&A AWA04&411
What are the reasons that lead to &ationalisation of
banks (
85
#n view o the reluctance o &ommercial $an%s5 beore
6=2=5 to inance small
business ventures and agriculture and not opening branches
in rural areas on account o low
business potential5 compelled the G,# to ta%e over the
control o ban%s by nationalising
them*
What is the need for 7inancial 6ntermediaries in 6ndia.
-inancial intermediaries play an important economic
unction by acilitating a
productive use o the communityMs surplus money5 (ranser
unds to those in need5 Eliminate
ris%s and $oost Economy*
What do you mean by teaser rates(
" teaser rate means5 a low introductory interest rate on an
ad?ustable rate mortgage
I"RM)5 generally in home loans* (he lender though
charges low interest rate initially he will
charge the real interest rate subse>uently* (he lender in this
case has to tell uture rate o
interest to the borrower and also its date o commencement*
#n other words5 the home loans
which are neither at i1ed rate nor at loating are called
teaser ratesS #n act5 it a techni>ue to
entice the borrowers who otherwise unable to >ualiy a
mortgage home loan* #n view o the
higher ris% associated with such loans5 the standard asset
provisioning on the outstanding
amount has been increased rom 0*90 per cent to / per cent
with immediate eect* (he
provisioning on these assets would revert to 0*90 per cent
ater 6 year rom the date on which
the rates are reset at higher rates i the accounts remain
standard*
6?0B! L 6nstitute for development @ 0esearch in
Bankin% !echnolo%y
was set up by the R$# in 6==2* (he R$# ormed a
committee on P(echnology 3pgradation in
the Payment SystemsP* (he committee recommended a
variety o payment applications
which can be implemented with appropriate technology
upgradation and development o a
reliable communication networ%* "s a result o the
committee@s recommendations the
institute was established in Cyderabad*
';!A1. ,nline ta1 accounting system is introduced to
enable the customers to pay all
their ta1es in $an% itsel5 instead o going to the concerned
departments li%e5 #ncome (a15
&entral E1cise5 Sales (a1 etc* ,n the other hand this is an
e1tra service and e1tra income to
the ban%s* (his type o income is called non.interesst
income* $an%s will earn around Rs 9:F.
per transaction rom the concerned departments*
SM"R( &"R)SO.
" smart card5 chip card5 or integrated circuit card I#&&)5 is
in any poc%et.sized card
with embedded integrated circuits which can process data*
(his implies that it can receive
input which is processed by way o the #&& applications
and delivered as an output* (here
are two broad categories o #&&s* Memory cards contain
only non.volatile memory storage
components5 and perhaps some speciic security logic*
Microprocessor cards contain volatile
memory and microprocessor components* (he card is made
o plastic5 generally P!&* (he
card may embed a hologram to avoid countereiting* 3sing
smartcards also is a orm o
strong security authentication or single sign.on within
large companies and organizations*
!he 1ociety for Worldwide 6nterbank 7inancial
!elecommunication
SW#-( provides a networ% that enables inancial
institutions worldwide to send and
receive inormation about inancial transactions in a secure5
standardized and reliable
environment*5 through SW#-( codes*
60?A. " statutory body called the #nsurance Regulatory
"uthority set up in 6==2*
Renamed as #nsurance Regulatory and )evelopment
"uthority with the passage o #R)"
"ct5 6===* Mr H Carinarayan is the present &hairman* (he
head>uarters o #R)" is at
Cyderabad
!he ma#or ob#ectives of the 60?A Act are.
Protect the policy holderMs F investorMs interest5 Promote
orderly growth o insurance industry
Registration o insurance companies
"dminister the provisions o #nsurance "cts5 )evise
control activities or unctioning o
insurance companies5 +ay down the accounting
methodology5 "d?udicate disputes
(he minimum paid up e>uity capital or lie or general
insurance business is Rs*600 crores*
(he minimum paid up e>uity capital or carrying on
reinsurance business has been prescribed
as Rs*/00 crores*
3ractice Bits
21. Which of the followin% are the essential
characteristics of "oney(
"* )urability $* Portability &* )ivisibility
)* "ll "5$ 4 & E* 'one o the above
22. !he 6mperial Bank of 6ndia was renamed as (
"* Reserve $an% o #ndia $* State $an% o #ndia &* 3nion
$anD o #ndia
86
)* #)$# E* 'one o the above
23. 3lastic money 45chan%ed electronically 6ncludes.
"* )ebit &ards $*&redit &ards &* "(M &ards
)* Smart &ards E* "ll the above
2$. 1ome of the institutions covered under all 6ndia
?76s are.
" #ndustrial -inance &orporation o #ndia I#-&#)
$ #ndustrial )evelopment $an% o #ndia I#)$#)
& #ndustrial &redit and #nvestment &orporation o #ndia
I#&#&#)
) #ndustrial #nvestment $an% o #ndia I##$#)
E "ll the above
2). ';!A1 stands for
A. ,nline (a1 "ssessment System $* ,nline (ata
"dministrative Services
8. ,nline (a1 "nalysis System )* ,nline (a1 "ccounting
System
4. 'one o the above
2*. Bpdated technolo%y enables the banks to provide
efficient products and services.
1ome of the products and services are.
"* "(M &ards $* &redit &ards &* Smart &ards
)* #nternet $an%ing E* "ll the above
2+. ___________has been set up for e5chan%e of credit
information amon% its members.
"* )#&G& $* E&G& &* &#$#+ )* EB#M $"'D E* R$#
2,. B81B6 stands for.
"* $asel &ommittee or State $an% o #ndia
$* $an%er &ustomer Stability $oard o #ndia
&* $an%ing &odes and Standards $oard o #ndia
)* $an%ing &odes and State $an% o #ndia
E* 'one o the above
2/. &+1BT is a Bankin% 0esearch 6nstitute established
in 1//* by.
"* Reserve $an%? o #ndia $* Government o #ndia
&* )epartment o #normation 4 (echnology )* #&R#S"(
E* 'one o the above
12. !easer 0ate of 6nterest means.
"* " teaser rate means5 a low introductory interest rate on
an "d?ustable Rate Mortgage
I"RM)5 generally in home loans
$* &harging high rate o interest
&* &harging high rate o interest or C'#s
)* Rate o interest charged to college sta members
E* 'one o the above
11. Brban 8ooeprative banks are controlled by
___________ and _______________
"* State Government and R$# $* State Government and
'"$"R)
&* $oth State Government and &entral Government
)* R$# and '"$"R)* E* 'one o the above
12. __________re%ulates all aspects of 6nsurance
Business
"* R$# $* #R)" &* "M-# )* SE$# E* "ll the above
13. 1W67! stands for
"* Society or Worldwide #nterban% -inancial
(elecommunication
$* Society or Worldwide #ndian -inancial
&* Social netIWor%ing) or #nternational -unds (ranser
)* ,nly & E* 'one o the above
1$. 0B6 is popularly known as a lender.
"* (o &entral Government $* (o State Government &* ,
-oreign &urrency
)* , the last resort 4. 'one o the above
1). &ame the scheme in "utual 7unds which is askin to
recurrin% deposits(
"* Systematic #nvetment Plan $* 3nit +in%ed #nsurance
Policy
&* ,pen Ended scheme )* "ll the above E* 'one o the
above
1*. &ame the payment system where payment
instructions are processed on a
continuous basis.
"* Protocol &onversion )evice $* R(GS
&* E&S )* "(M E* 'one o the above
1+ !he benefits of levera%in% technolo%y to the customer
are.
"* Easier access $* Ruic%er services &* &onvenience o
ban%ing
)* Global access E* "ll the above
1,. Which of the followin% or%anisations-a%encies works
solely to monitor and arran%e
flow of a%riculture credit in 6ndia(
"* '"$"R) $* R$# &* S#)$# )* SE$# E* 'one o the
above
1/. 6718 code represents.
"* #ndian -inancial Systematic &ode $* #ndian -ore1
Service &ouncil
&* #ndian -inancial System &ode )* #ntegrated -inancial
Services &ode
-* 'one o the above
22. When banks accept a fi5ed sum of money from an
individual for a definite term and
pay on maturity with interest the deposit is known as .
"* (erm )eposit $* )emand )rat &* $ond
)* Mortgage E* 'one o the above
A&1W401
21 22 23 2$ 2) 2* 2+ 2, 2/ 12
) $ E E ) E & & " "
11 12 13 1$ 1) 1* 1+ 1, 1/ 22
" $ " ) " $ E " & "