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500 Banking Awareness Question With Answers
500 Banking Awareness Question With Answers
InstantJobAlerts
BANKING AWARENESS
QUESTIONS WITH
ANSWERS, 2013
Instant Job Alerts is a leading Job portal where you can get all
Job alerts regarding all the government and private jobs easily.
77. Age limit for Prime Minister's Employment Generation Programme (PMEGP):
Answer: 18 years and above.
78. Eligibility under PMEGP:
Answer: Projects costing upto Rs.10.00 lacs (maximum) under business/service sector and Rs.25.00 lacs
(maximum) under manufacturing sector.
79. Right to Information Act 2005 came to effect w.e.f:
Answer: 15.06.05
80. JLG group may have:
Answer: 4-10 members.
81. Limit for Produce (Marketing) Loan Scheme:
Answer: Maximum loan upto Rs.10 lakh
82. Cherry Picking means:
Answer: Investment in Mutual Funds
83. Dividend Stripping:
Answer: Purchase of shares before declaration of dividend and sale after declaring dividend
84. Fiscal Deficit:
Answer: Capital expenditure minus capital receipts
85. Philips Curve relates to:
Answer: Poverty and Unemployment
86. Inequality in income & wealth is shown by:
Answer: Lorenz Curve
87. Gresham's Law in Economics:
Answer: Bad Money drives out good money
88. Balance of Trade refers to:
Answer: net of value of exports and value of imports (merchandise account).
89. Mezzanine Financing:
Answer: A hybrid of debt and equity financing.
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141. ____ has become the First Public Sector Bank to raise Equity Capital through Qualified Institutional
Placement (QIP):
Answer: Bank of India
142. According to the Global Information Technology Report 2007-08, __ is the Most Networked Economy in the
World:
Answer: Denmark
197. Mr. A, a current A/c holder executed a power of attorney in favour of Mr. B to operate Current Deposit A/c.
Mr. A's death notice is served on the Banker. A cheque duly signed by Mr. B. is received for payment the
Bank has to:
Answer: Dishonour the Cheque.
198. Mr B opened an account on 12.04.09, got issued cheque book on 17.04.09. A cheque dated 10.04.09 is
presented for payment, what will be the fate of the cheque:
Answer: The Cheque will be paid if otherwise in order.
199. Contract of Insurance is an :
Answer: indemnity contract.
200. Bailment is defined in :
Answer: Indian Contract Act Sec. 148.
201. Cheque may be crossed by drawer, holder, banker :
Answer: All (Sec. 125)
202. Mortgage by Deposit of title of deeds is :
Answer: Equitable Mortgage (Transfer of Property Act, Sec. 58F).
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243. A branch is considered as rural branch if it is located as a place with population below:
Answer: 10,000. (RBI definition), however for PMEGP it is 20000
244. Converting physical shares to electronic from is called:
Answer: Dematerialization
245. Official Language Committee Meeting:
Answer: Once in a quarter
246. Minimum age of minor for self operated account:
Answer: 10 years
247. Vyas committee recommendations relates to:
Answer: Agriculture credit
248. Committee which recommended about Universal Banking:
Answer: R.H. Khan
249. The Uniform Custom & Practices for Documentary Credits (UCP 600) has _ as the total number of Articles:
Answer: 39
250. Agency commission rat~ for governments business receipts is at the rate of_ per transaction:
Answer: Rs. 45
251. Which sector has become the world's biggest source of employment:
Answer: Services
252. Foreign Banks in India and Indian banks having presence outside India are to comply with Basel II norms
w.e.f.:
Answer: 31st March, 2008
253. In the total food grain output of India, what is the share of Kharif Crops:
Answer: 50%
254. The Grameen Bank Model of micro-finance institution was developed originally by:
Answer: Bangladesh
255. Interest on Cash Reserve Ratio eligible balance is paid by RBI on __ basis:
Answer: No interest is paid
256. Banks are required to maintain minimum of __ of their CRR requirement on a daily basis:
Answer: 70%
257. Stamp duty payable on a Promissory Note is governed by :
Answer: Indian Stamps Act
258. Banks can raise up to __ of the total Tier-I capital in the form of perpetual debt:
Answer: 15%
259. The rate of commission paid by government for pension payment is :
Answer: . Rs. 60 per transaction
260. 'Customer' has been defined in :
Answer: KYC Guidelines
261. What is the cut-off point for reforming fraud cases to CBI :
Answer: Rs. 1 crore
262. RTGS will minimize __ risk:
Answer: Settlement risk
263. What are the Indian Depository Receipts:
Answer: Financial Instruments that allow foreign companies to mobilize funds from Indian markets
264. Which act gives legal guarantee of 100 days employment in rural areas to 1 person in every household:
Answer: National Rural Employment Guarantee Act (NREGA)
265. Service tax has to be remitted to the Govt. A/c by :
Answer: 5th of the succeeding month
266. The risk of loss resulting from inadequate or failed intemal processes, people and systems or from external
events is :
Answer: Operational risk
267. Which committee had recommended formation of Banking Standards and Codes Board to prescribe
guidelines in the banking sector for improving customer service:
Answer: S.S. Tarapore Committee
268. Which state stands first in promoting SHG movement:
Answer: Andhra Pradesh
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282. 'Metropolitan' group includes all banked centres with population of and above:
Answer: 10,00,000
283. RBI has allowed NBFCs registered with RBI to issue co-branded credit cards with banks, without risk sharing,
with prior RBI approval, for an initial period of :
Answer: Two Years
284. Under population group of banked centres, 'Semi urban' group includes all banked centres with population
of 10,000 and above but less than:
Answer: 1,00,000
285. 'Urban' group is that which has a population above 1,00,000 but below:
Answer: 10,00,000
286. Which sector has become the world's biggest source of employment:
Answer: Services
287. Which is the largest country in the world in terms of land area:
Answer: Russia
288. Which State has become the first State in India to launch evening courts:
Answer: Gujarat
289. The country which is known as 'Land of Co-operative' is:
Answer: Denmark
290. Right to Education to all children between the age of 6 to 14 years is :
Answer: A fundamental right
291. The time period of settlement in case of RTGS is :
Answer: Two Hour
292. Which state has got the maximum agricultural credit from the nationalized banks :
Answer: Andhra Pradesh
293. Which state is at the top in agricultural production in India:
Answer: Punjab
294. In the total food grain output of India, what is the share of Kharif Crops:
Answer: 50%
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344. Exposure norms for different industries/indivlduals/ groups fixed by the Banks/RBI are part of:
Answer: Risk Management
345. Pre-operative expenses are included in :
Answer: Intangible assets
346. Pre-paid expenses-are classified as :
Answer: Current assets
347. Assets = Liabilities are as per:
Answer: Dual aspect concept
348. Normally, Foreign Traveler cheque 'buying rate is better than Foreign currency rates because of :
Answer: Holding cost
349. A bill of USD one lac under Letter of Credit is due for payment after one month. There is appreciation is
rupee. The importer will:
Answer: Gain
350. Dividend distribution tax is being paid by :
Answer: Company
351. CBS refers to :
Answer: Centralized Banking Solution
352. RBI has now dispensed with restrictive provisions of service area approach except for:
Answer: Loans under Govt Sponsored Programmes
353. In deceased deposit accounts, where nomination has been exercised, banks to inform nominee within ___
months in case of deposit accounts 'and Within _____ months in case of locker accounts:
Answer: 6 : 3
354. Debtors velocity ratio of a company is very low, it does indicates :
Answer: Debtors collection management of the company is good
355. At what rate, RBI provides advance to Banks against the Govt securities:
Answer: Repo Rate
356. Best explain the term "CBLO' :
Answer: It is type of money market instrument, which is used to borrow and lend funds against securities
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396. As per RBI directives, the complaints relating to cash not dispensed at ATMs although deposit account is
debited etc. should be disposed of within a period of ___ :
Answer: 3 days.
397. Which state is at the top of a list of best e-governed 20 states:
Answer: Goa
398. Surrender value in the context of Life insurance policy means:
Answer: Minimum value that is given by an insurance company in the case of foreclosure of the policy
399. Star series notes means those notes which are placed in replacement of defective notes issued in the
denomination of :
Answer: Rs10, Rs 20, Rs 50
400. When RBI sells the securities to banks and gets cash from banks under LAF, RBI pays interest to banks at :
Answer: Reverse Repo Rate
401. Decision given by the Ombudsman has to be implemented by the bank within:
Answer: 1 month from the date of receipt of acceptance from complainant
402. In the context of collection of cheques, conversion means:
Answer: Crediting the amount of the cheque to the account of a person who is not entitled to it.
403. As per Section 19(2) of the Banking Regulation Act, a banking company shall not hold shares in a company,
either as pledge or as owner of an amount exceeding _ of the paid up capital of the company or _of its own
paid up capital and reserves whichever is less.
Answer: 30%, 30%
404. ______ is part of the larger emission trading which is a method worked out to control pollution by using
economic incentives:
Answer: Carbon Trading
405. According to Transparency International (TI) corruption index, India has ranked:
Answer: 72
406. ______has agreed to declare all its nuclear programmes and disable its main atomic reactor by the end of
the year under US supervision:
Answer: N. Korea
407. For bank the main advantage of referring the matter to Lok Adalats is:
Answer: It is based on mutual consent hence decision and its execution is fast.
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408. For which of the Industries Cash budget system for assessment of MPBF has recently been adopted by the
bank:
Answer: Service, Software, Sugar, Tea.
409. Probate is a document issue by Court of law and is the' nature of :
Answer: An official confirmation of the will of the deceased.
410. Currency & Finance is a report being published by:
Answer: RBI
411. Twin sisters of Bretton Woods:
Answer: World Bank and IMF.
412. Which,type of Letter of Credits, pre-shipment credit is offered :
Answer: Red-clause letter of credit
413. Explain the term 'Islamic Banking' :
Answer: Banking without the factor like" Interest on money deposited or lent"
414. In Ombudsman Scheme, Customer Service Committee Report is to be submitted on __ basis :
Answer: Quarterly
415. The risk associated with higher foreign exchange reserves is :
Answer: Exchange rate movement risk
416. What is the maximum discount that a company can offer to retail investors for their public issues?:
Answer: 10%
417. Which country has chosen the face of its motherhood as the first woman to be featured in its banknotes? :
Answer: South Korea
418. India ranks as _ in the list of largest carbon emitters:
Answer: Fourth
419. Who is the head of internal working gap set up by RBI to examine the recommendations of the Radhakrishna
Export on Agricultural indebtedness?:
Answer: Mr V.S. Das
420. Account of Bank of America with us will be treated as:
Answer: Vostro account
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433. In SGSY scheme, the funding pattern between Central and State Govt. is:
Answer: 75: 25
434. As per the Micro, Small & Medium Enterprises Development Act 2006, the definition of Medium Enterprise.
Answer: Investment in Plant and Machinery above Rs. 5.00 Cr to Rs. 10.00 Cr.
435. Loans for construction and running of cold storage units are designed to store agriculture produce / products
situated at____ are classified under PS under_ segment Irrespective of location:
Answer: Indirect agriculture
436. One of your valuable customer has come to you and he wants joint account with his wife. However, he wants
that the account should be available for operation to his wife only after his death. Which type of the account
is best suited.
Answer: Former or Survivor
437. No Collateral is required for Education loans upto Rs.____
Answer: For loan less than Rs. 7.51 lacs.
438. The white plastic cards are:
Answer: Duplicate/counterfeit cards
439. Under SGSY scheme, women SHG should have a minimum share %age of:
Answer: 50
440. As per the recent directive of RBI, the method for charging rate of interest should be applied to SGSY group
Loans:
Answer: On individual loan sanctioned basis
441. The %age or risk weight to be applied to the NPA purchased from other banks is:
Answer: 100%
442. RBI has permitted banks Door Step banking under:
Answer: Banking Regulation Act
443. Explain the term 'Market Capitalization of a Company:
Answer: Total equity shares x current market value per share
444. The Reserve Bank of India Note (Refund) Rules (as amended up to 1980) to be modified in order to make it
easier for the public to obtain the refund value in respect of _____:
Answer: Mutilated Notes
445. Disclosure of segment reporting under Accounting Standard enhanced to include more categories of
Corporate I Wholesale banking, Retail banking and other Banking business:
Answer: AS 17 ....
446. The Indian Financial Network (INFINET) system to be operationalised as a __network by the Institute for Dev.
& Research in Banking Technology:
Answer: MultiProtocol
447. For claims payable by DICGC to depositors, it is proposed to treat Joint deposits held in the names of 'A & B'
and 'B & A' to be two separate a/cs eligible for maximum claim of Rs. ___ lakh each:
Answer: One
448. India's rank in Human Development Index in UNDP Report is:
Answer: 124 out of 173.
449. The account which, NRI can open joint account with Resident Indians:
Answer: NRO
450. As per the Micro, Small & Medium Enterprises Development Act 2006, the definition of Micro Service
Enterprises:
Answer: Investment in equipments not exceeding Rs. 10 lacs.
451. In a Letter of Credit, if nothing is mentioned, whether it is revocable or irrevocable, strictly in terms of
UCPDCICC - 600, it will it be treated as:
Answer: Irrevocable
452. Resident Indian, rendering professional services as described under FEMA in his/her individual capacity can
keep upto_____% of their foreign exchange earnings in EEFC accounts:
Answer: 100%
453. In all a bill exchange, there is no mention about the date of payment. On which date, it will be payable:
Answer: On demand
454. A bank has purchased cheque under its instant credit scheme. What is the position of a banker:
Answer: Holder for value
455. When we are in oversold position and currency is appreciating, squaring of the position will result in:
Answer: Loss
456. Not Negotiable crossing is a direction of the customer to:
Answer: Collecting Banker
457. In Ombudsman Scheme, Customer Service Committee Report is to be submitted on __ basis:
Answer: Quarterly
458. Study of fund flow statement indicates:
Answer: Sources and Uses of funds available with the company.
459. Small and Micro Enterprises (Mfg and Service both) covered are eligible for guarantee cover of 75% of the
default amount under CGTMSE. The maximum amount claim is:
Answer: Rs. 62.50 lacs
460. Risk associated with frauds by employee of the bank is covered:
Answer: Operational Risk
461. w.e.f ___ State Govt guaranteed advances would be subject to same norms for asset classification as other
advances:
Answer: 31.03.06
462. In case of SME advances QMS forms have been simplified and Current ratio norms relaxed to:
Answer: 1.25:1
463. Planning Commission of India was established in the year:
Answer: 1950
464. Central Bank of the country was established on 1st April 1935 under the Reserve Bank of India Act 1934 on
the recommendations of:
Answer: Hilton - Young Commission (1926)
465. 'PIN' in Smart Card is called:
Answer: Personal Identification Number
466. The rupee exchange rate is currently linked with:
Answer: Basket of currencies
467. To operate in India, Fils are required to apply to:
Answer: SEBI
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468. As per the Union budget the date for the implementation of a single goods and services tax, as per the Kelker
Committee recommendations:
Answer: 1st April 2010
469. Cash Budget method for working out bank finance was suggested by:
Answer: Kannan Committee.
470. For financing sugar industry method is used:
Answer: cash budget.
471. Maximum project cost under National Equity Fund:
Answer: 50 lacs
472. Expand M I C R:
Answer: Magnetic Ink Character Recognition
473. Export refinance is provided by:
Answer: RBI
474. While granting advance against Life Insurance Policy, bank consider:
Answer: surrender valu of the policy.
475. A cheque is dated before the date of presentation is:
Answer: Ante dated cheque
476. New name of Vikas Volunteer Programme:
Answer: Farmers Club
477. For availing finance from bank, whether registration as SSI is compulsory:
Answer: No
478. A Credit Card can be called as:
Answer: Plastic Money
479. The Stamp duty on a demand Bill of exchange of Rs 1000 is:
Answer: Nil as no stamp duty is levied on demand bills
480. Network in same building:
Answer: LAN