Thursday, 17 September 2015

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150 Important Banking Awareness Questions for upcoming exams.

150 Important Banking Awareness Questions for upcoming exams.
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1. MICR code consists of how many digits?
Ans: 9 digits.
(First three digits denotes city, next three digits representing the bank and the last three digits representing the bank branch)

2. What is the minimum limit in RTGS system?
Ans: 2 lakhs (there is no upper limit in RTGS)

3. What is full form of CTS?
Ans: Cheque Truncation System

4. Under which service, customers may access their bank account and perform basic transactions from any of the member branch offices.
Ans: Core Banking Solution (CBS)

5. Exchange of cash flow in different currency is known as:
Ans: Currency Swap

6. Assets or loans which stop performing after 90 days is known as:
Ans: Non Performing Asset (NPA)

7. Who controls the Monetary Policy in India?
Ans: RBI (Reserve Bank of India)

8. Which card is issued by NPCI (National Payments Corporation of India)?
Ans: RuPay Card

9. Definition of Current Account deficit:
Ans: A measurement of a country's trade in which the value of goods and services it imports exceeds the value of goods and services it exports.

10. Full form IFSC –
Ans: Indian Financial System Code

11. Commercial paper can be issued for a maximum period of:
Ans: 365 days or 1 year.

12. The Mutual funds in India follow accounting standards laid by:
Ans: SEBI (Securities and Exchange Board of India)

13. Minimum amount for Certificate of Deposit has been fixed at:
Ans: Rs. 1 Lakh

14. AML is a term mainly used in the financial and legal industries. Expand the term AML:
Ans: Anti Money Laundering

15. PIN is a number allocated to an individual and used to validate electronic transactions. Expand PIN:
Ans: Personal Identification Number

16. What is Repo rate?
Ans: It is the rate is the rate at which RBI lends money to the commercial banks.

17. What is Stale Cheque?
Ans: A cheque which is presented to a bank after 3 months from date of issue is considered as stale cheque and will often not be honored for cash or deposit at a bank.

18. What is Bancassurance?
Ans: The selling of life assurance and other insurance products and services by banking institutions.

19. The objective of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering or terrorist financing activities. What is the full form of KYC?
Ans: Know Your Customer (KYC)

20. Know Your Customer (KYC) guidelines are issued under:
Ans: Section 35A of the Banking Regulation Act, 1949

21. In BSBDA (Basic Savings Bank Deposit Account) the credits in a financial year does not exceed rupees:
Ans: Rs. 1 lakh

22. In BSBDA (Basic Savings Bank Deposit Account) the balance at any point of time does not exceed rupees:
Ans: Rs. 50,000

23. In BSBDA (Basic Savings Bank Deposit Account) the withdrawals and transfers in a month does not exceed rupees:
Ans: Rs. 10,000

24. At which rate RBI give loans to commercial banks?
Ans: Repo rate

25. Full form of CASA:
Ans: Current Account Saving Account

26. In what denominations Commercial Paper (CP) can be issued?
Ans: Rs. 5 lakh

27. What is the minimum denomination of Treasury bills to issue in India?
Ans: Rs. 25,000

28. Who cannot issue Certificate of Deposit (CD)?
Ans: Regional Rural Banks (RRBs) and Local Area Banks (LABs)

29. Expand ASBA:
Ans: Application Supported by Blocked Amount

30. Depositor Education and Awareness Fund (DEAF) is maintained with:
Ans: RBI

31. Cash Reserve Ratio (CRR) is the amount of funds that the banks have to keep with:
Ans: Central Bank (RBI)

32. What is the maximum amount per transaction NEFT limit for cash-based remittances to Nepal?
Ans: Rs. 50,000

33. What does CAR stands for?
Ans: Capital Adequacy Ratio

34. IFSC code consists of _____ alpha numeric code.
Ans: 11 digits
(The IFSC is an 11 digit alpha numeric code, with the first four digits identifying the bank, fifth is numeric (kept 0) and the last six digits represent the bank branch.)

35. When money is lent or borrowed for one day or on overnight basis it is known as:
Ans: Call Money

36. When money is lent or borrowed for between 2 days and 14 days it is known as:
Ans: Notice money

37. When money is lent or borrowed for a period of more than 14 days, it is known as:
Ans: Term money
38. Treasury Bills and Certificate of Deposit are considered as the ____instruments.
Ans: negotiable money market
39. Commercial Paper (CP) is an unsecured money market instrument issued in the form of a _____.
Ans: Promissory note.
40. What is the upper limit in Public Provident Fund (PPF)?
Ans: Rs. 1.5 lakhs
41. As per RBI guidelines, with effect from April 1, 2012, the validity period of Cheques, Demand Drafts, Pay Orders and Banker's Cheques is _____.
Ans: 3 months
42. What is the time limit for an asset or loan to be declared as Non-Performing Asset?
Ans: 90 days
43. Deposit Insurance and Credit Guarantee Corporation (DICGC) does not cover:
Ans: Primary co-operative societies
44. RBI measure to liquidate the market:
Ans: Repo rate.
45. Full form of EFT:
Ans: Electronic Fund Transfer
46. Fastest mode of transaction:
Ans: RTGS
47. Alphanumeric code on cheque is known as:
Ans: Indian Financial System Code (IFSC)
48. Bank pays interest on savings account?
Ans: Daily Basis
49. What is the loan limit for education under priority sector for studies abroad?
Ans: Rs. 20 lakh
(Loans to individuals for educational purposes including vocational courses upto Rs.10 lakh for studies in India and Rs. 20 lakh for studies abroad are included under priority sector.)
50. RuPay Card is an Indian version of credit/debit card is launched by which organization:
Ans: NPCI (National Payments Corporation of India)
51. Fixed Deposit (FD)Account may be opened for a minimum period of:
Ans: 7 days
52. What is the minimum amount required to open a Fixed Deposit (FD)?
Ans: Rs.1000
53. The Banks has converted all 'no - frills' accounts' into:
Ans: Basic Savings Bank Deposit Accounts
54. 'Pradhan Mantri Jan Dhan Yojana' is a Scheme for:
Ans: Financial inclusion
55. How much overdraft facility to be provided in 'Pradhan Mantri Jan Dhan Yojana' scheme?
Ans: Rs. 5,000
56. In CBS, C stands for:
Ans: Core
57. In CRAR, A stands for:
Ans: Assets (Capital to Risk Weighted Assets Ratio)
58. IMPS - Immediate Payment Service is an interbank electronic instant mobile money transfer service through mobile phones in India, the facility is provided by:
Ans: NPCI (National Payment Corporation of India)
59. The Central Bank of India has adopted new measure of inflation:
Ans: Consumer Price Index (CPI)
60. When a cheque is torn into two or more pieces and presented for payment, such a cheque is called:
Ans: mutilated cheque
61. How much fee charged to file a complaint under Banking Ombudsman? Ans: Banking Ombudsman does not charge any fee
62. Who is the appellate authority in Banking Ombusdsman?
Ans Deputy Governor of RBI 63. If any customer is not satisfied by the decision of Banking Ombudsman, customer can appeal against the award before the appellate authority within how many days from the date of receipt?
Ans 30 days
64. ATMs or Cash Dispensing machine which are owned and operated by Non-Banking Financial Companies are called:
Ans: White Label ATMs.
65. RBI gave in-principle for Banking license to:
Ans: IDFC and Bandhan
66. Minimum capital requirement for new banks in private sector is:
Ans: Rs. 500 crore
67. A Non-Banking Financial Company (NBFC) is a company registered under the:
Ans: Companies Act, 1956
68. Minimum capital requirement for Non-Banking Financial Company (NBFC) is:
Ans: Rs. 500 crore
69. The NBFCs are allowed to accept/renew public deposits for a minimum period of:
Ans: 12 months ( and maximum period of 60 months)
70. A NBFCs cannot offer interest rates higher than the ceiling rate prescribed by RBI? What is the present ceiling?
Ans: 12.5 per cent per annum
71. Minimum capital requirement for Foreign banks that want to set up operations in India is:
Ans: Rs. 500 crore
72. What is the minimum paid-up capital requirement of both small banks and payments banks in India?
Ans: Rs. 100 crore
73. RBI extended the timeline for full implementation of Basel III norms till:
Ans: 31 March 2019
74. SLR ((Statutory Liquidity Ratio)is the amount a commercial banks needs to maintain in the form of _______before providing credit to its customers.
Ans: cash, or gold, or govt. approved securities (Bonds)
75. _______ is the rate at which banks borrow funds overnight from the Reserve Bank of India (RBI) against approved government securities.
Ans: Marginal Standing Facility (MSF)
76. Who issues Treasury bills (T-bills) in India?
Ans: Government of India
77. Treasury bills are available for a minimum amount of:
Ans: Rs. 25,000
78. Minimum & Maximum Limit of NEFT:
Ans: no limit
79. What is the rate of interest rate on provident fund for the current fiscal?
Ans: 8.75%
80. Govt. to implement GST (Goods & Services Tax) new indirect tax regime from:
Ans: 1st April 2016
81. RBI extends deadline for exchanging pre-2005 currency from June 30, 2015 to
Ans: December 31, 2015
82. How much amount RBI allows in 'Tap and pay' transactions without PIN?
Ans: Rs. 2000
83. RBI lifted a ban on carrying Indian bank notes of Rs 1,000 and Rs. 500 denominations to and from:
Ans: Nepal and Bhutan
84. C stands for in "KYC":
Ans: Customer
85. Pension scheme for unorganized sector:
Ans: Swavalamban
86. Full form of REIT:
Ans: Real State Investment Trust
87. Forward Market Commission merge with:
Ans: SEBI
88. Purpose of starting Minor account for 10 years children:
Ans: Financial inclusion
89. Full form of CVV:
Ans: Card Verification Value
90. Bank of International Settlement headquarter:
Ans: Switzerland
91. Who appoints Banking Ombudsman officer?
Ans: RBI
92. IFRS full form:
Ans: International Financial Reporting Standards.
93. Corporate Social Responsibility committee headed is by Ans: Anil Baijal
94. Which is the Regulatory body for RRBs?
Ans: NABARD
95. RBI policy related to money laundering?
Ans: Know Your Customer
96. Mutual funds regulated by:
Ans: SEBI (Securities and Exchange Board of India)
97. What is the full form of MTSS?
Ans: Money Transfer Service scheme
98. How much amount of money can RBI lend to a bank?
Ans: 2% of NDTL
99. What RBI does to Increase its Monetary Base?
Ans: OMO Open Market Operations
100. Which rate does RBI Reduces to Increase liquidity in market?
Ans: Repo Rate
101. After completion of 15 years, Public Provident Fund (PPF) can be extended up to how many years?
Ans: 5 years
102. Short term Money lending process is known as:
Ans: Call Money
103. Treasury bill tenure:
Ans: 91 days, 182 days, 364 days
104. Minimum limit for medium scale enterprises is Rs. 5 Cr. what is maximum limit?
Ans: 10 Cr.
105. Prime Lending Rate is replaced by:
Ans: Base rate
106. Banks cannot grant Loan below which rate:
Ans: Base Rate
107. If RBI reduces CRR, what happens:
Ans: Credit Supply increases, loans get cheaper.
108. Name the scheme to include every people under banking system:
Ans: Financial Inclusion
109. Special Drawing Right (SDR) is a monetary unit of:
Ans: IMF
110. Cheque which is not crossed is called:
Ans: Open cheque
111. Teaser rates are related to which type of loans:
Ans: Home loans
112. What is Teaser loan?
Ans: If a bank offers a slightly lower rate in the initial years and higher rate in later years, it is called a teaser loan.
113. The RBI policy rate which is purely an indicative rate used by RBI to signal long – term outlook on interest rates is:
Ans: Bank rate
114. The term 'pre – shipment' finance relates to:
Ans: export credit
115. A receipt listed in India and traded in rupees declaring ownership of shares of a foreign company:
Ans: Indian Depository Receipt (IDR)
116. With effect from July 2012, for calculating of lending rates, the RBI has advised banks to switch over to the:
Ans: Base Rate systems
117. Mobile banking fund transfer limit in a day:
Ans: Rs. 50,000
118. The seed capital of Bhartiya Mahila Bank is:
Ans: Rs.1000 crore
119. "Lender of the Last Resort" by Banks is known as:
Ans: RBI
120. "Fixed deposit" is also referred to as:
Ans: Term Deposit
121. The holidays for the banks are declared as per:
Ans: Negotiable Instruments Act
122. In banking business, when the borrowers avail a term Loan, initially they are given a repayment holiday and this is referred as:
Ans: Moratorium
123. Regulator of Micro, Small and Medium enterprises in India:
Ans: SIDBI (Small Industries Development Bank of India)
124. A worldwide financial messaging network which exchanges between banks and financial institutions is known as:
Ans: Structured Financial Messaging System (SFMS)
125. The term "Smart Money" refers to:
Ans: Credits Card
126. The maximum deposit amount insured by DICGC?
Ans: Rs. 1 lakh per depositors across all banks
127. With reference to a cheque which is the 'drawee bank'?
Ans: The bank upon which the cheque is drawn
128. In which of the following fund transfer mechanisms, can funds be moved from one bank to another and where the transaction is settled instantly without being bunched with any other transaction?
Ans: RTGS
129. Bad advances of a Bank are called:
Ans: Non – performing Asset
130. By increasing repo rate, the economy may observe the following effects:
Ans: rate of interest on loans and advances will be costlier
131. Increased interest rates, as is existing in the economy at present will:
Ans: mean higher cost of raw materials
132. The sole authority to issue and manage currency in India:
Ans: RBI
133. In India, one- rupee coins are issued by:
Ans: Govt. of India
134. Fixed deposits and recurring deposits are:
Ans: repayable after an agreed period
135. When a bank returns a cheque unpaid, it is called:
Ans: dishonour of the cheque
136. What is 'Demat Accounts'?
Ans: Accounts in which shares of various companies are traded in electronic form
137. When the rate of inflation increases:
Ans: purchasing power of money decreases
138. Banks in India are regulated under:
Ans: Banking Regulation Act, 1949
139. Banking sector falls under which of the following sectors?
Ans: Service Sector
140. ASBA scheme is related to the purchase of:
Ans: IPO
141. In a bank, which of the following are the usual types of accounts?
Ans: Current accounts, Savings bank accounts and Term deposit accounts
142. The most powerful tool used by the Reserve Bank of India to control inflation is to:
Ans: raise interest rates
143. NEFT and RTGS in banking terminology speak of:
Ans: electronic fund transfer from bank to bank
144. The ownership of public sector banks rests:
Ans: jointly with the Government of India and the shareholders from the public
145. If a cheque is postdated, the bank on which it is drawn:
Ans: will not honour the cheque before the date of the cheque
146. Regulator of Capital Market in India:
Ans: SEBI
147. First Indian Bank to introduce credit card:
Ans: Central Bank of India
148. RBI nationalized in:
Ans: 1949
149. Loans of very small amounts given to low income groups is called:
Ans: Micro Credit
150. RBI established in:
Ans: 1935.

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