To all JIBO aspirants,

It gives us immense pleasure to bring out study material which we are confident that
it will supplement your efforts in JIBO preparation. And Continue efforts in acquiring
knowledge as there is nothing to lose, but gain some more knowledge.

Utmost care has been taken while preparing the Question Bank, however the
aspirants are advised to refer relevant circular and instructions for complete
information. Readers are requested to inform authors if any discrepancies are
noticed. Readers may contact authors at the following e-mail addresses.

Vaddiparthy.v.srinivas@sbi.co.in

kbrajesh@sbi.co.in

narendra.m@sbi.co.in

Answer for the question has been provided beside the question for the convenience
of reader. However readers are advised to solve the questions before looking for
answer.

We wish you all the best in your preparation and exam.

V.V.SRINIVAS, Chef Manager (FACULTY)

K.B.RAJESH, Chief Manager (FACULTY)

M.NARENDRA KUMAR, Chief Manager (FACULTY)

SBILD VIZIANAGARAM
GENERAL BANKING AND OPERATIONS

Prepared by Sri V.V.Srinivas

Chief Manager (Faculty)

SBILD, VIZIANAGARAM
 OBJECTIVE QUESTION BANK ON OPERATIONS

Q.No QUESTION ANSWER

1 Cash Reserve Ratio is required to be maintained by every A
Bank as per which act?
a) Sec 42 of RBI Act
b) Sec 42 of BR Act
c) Sec 24 of RBI Act
d) Sec 24 of BR Act
2 Banking Regulation Act does not apply to C
a) Co-operative Banks
b) Private Banks
c) Co-operative Land mortgage bank
d) None of these
3 RTI Act came into force wef C
a) 15th August 2005
b) 10th September 2005
c) 12th October 2005
d) 26th January 2006
4 Which of the following statement is false in relation to RTI
Act?
a) Information in respect of the customers of the Bank B
shall be kept outside the rule of disclosure under the (information
Act from private
b) Information from private banks can be sought from the banks can be
concerned bank branch sought
c) Public sector banks, constituted by parliament or by through RBI)
Government are considered public authority under the
Act
d) All the statements are true
5 Which of the following information is not exempted from A
disclosure under the RTI Act?
a) Bank related information
b) Fiduciary information
c) Information which would endanger the life
d) Information which would impede the investigation

6 Under the RTI Act, who is appointed for the purpose of B

accepting the applications/appeals from the citizens?
a) CPIO
b) CAPIO
c) Appellate authority
d) All the above
7 Under the RTI Act, who is appointed for the purpose of A
providing information to a person?
a) CPIO
 b) CAPIO
c) Appellate authority
d) All the above
8 Under the RTI Act, an applicant who does not receive a reply B
within the specific period or who is not satisfied with the
decision of the CPIO can prefer an appeal within how many
days to the appellate authority of the Bank?
a) 15 days
b) 30 days
c) 45 days
d) 60 days
9 How much penalty can be imposed by CIC against the CPIO B
where it considers the action of CPIO against the rules of RTI
Act?
a) ₹20000
b) ₹25000
c) ₹50000
d) ₹100000
9 Under Contactless lending platform (CLP) portal, which of C
the following loans cannot be applied?
a) Business Loans
b) Retail Loans
c) Production Loans
d) All the above
10 What is the name of the website used for Contactless lending B
platform (CLP portal)?
a) Loansin59minutes.com
b) Psbloansin59minutes.com
c) Applyloansin59minutes.com
d) Msmeloansin59minutes.com
11 Who has developed the Contactless lending platform (CLP) C
for sanctioning of loans?
a) Central Government
b) RBI
c) SIDBI
d) NABARD
12 Which of the following statement is false under Contactless B (7 days)
lending platform?
a) Branch visit to apply for the loan is not required
b) The Maximum time limit for sanction/rejection will be
15 days from the date of receipt of in-principle
sanction
c) Customers will be allowed to re-apply to another bank,
if selected bank has not sanctioned the proposal
d) A customer is required to visit the branch only once
during entire journey i.e. at the time of documentation
13 The Payment and Settlement Act, 2007 came into existence C
w.e.f
a) 20th December 2007
 b) 26th January 2008
c) 12th August 2008
d) 15th August 2008
14 Dishonour of EFT for insufficiency of funds in the account is B
covered
a) u/s 20 of the PSS Act 2007
b) u/s 25 of the PSS Act 2007
c) u/s 50 of the PSS Act 2007
d) u/s 58 of the PSS Act 2007
15 Under PSS Act, what is the punishment for dishonour of EFT D
a) Imprisonment for a term upto 1 year or fine equal to
the amount of EFT or with both
b) Imprisonment for a term upto 2 years or fine equal to
the amount of EFT or with both
c) Imprisonment for a term upto 1 year or fine twice the
amount of EFT or with both
d) Imprisonment for a term upto 2 years or fine twice the
amount of EFT or with both
16 In PSS Act, the beneficiary makes a demand for the payment D
of the said amount of money by giving a notice in writing to
the person initiating the EFT within how many days of the
receipt about dishonour?
a) 7 days
b) 10 days
c) 15 days
d) 30 days
17 A person who is not a partner but has lent his name or by C
express words or by conduct of representing himself to be a
partner is called
a) Nominal partner
b) Ostensible partner
c) Partner by estoppel
d) Sub-partner
18 For a Limited Liability Partnership, the maximum number of D
partners are limited to
a) 10
b) 20
c) 50
d) No maximum limit
19 Paying Bank obligation is defined under which section of NI A
Act?
a) u/s 31 of NI Act
b) u/s 131 of NI Act
c) u/s 20 of NI Act
d) u/s 130 of NI Act
20 Where a materially altered cheque is paid and if the D
alteration is not visible even after careful examination of the
cheque, Bank gets protection under which section of NI Act?
a) u/s 10 of NI Act
 b) u/s 68 of NI Act
c) u/s 87 of NI Act
d) u/s 89 of NI Act
21 Maximum claims upto which a state commission entertains C
the petitions is
a) ₹20 lakhs
b) ₹50 lakhs
c) ₹100 lakhs
d) Greater than ₹ 100 lakhs
22 For filing a complaint in a consumer forum, the service B
should be availed within how many years?
a) 1 year
b) 2 years
c) 3 years
d) No such time frame
23 An appeal can be made with the state commission against C
the order of the district forum within how many days of the
order along with the extendable period?
a) 15 days
b) 30 days
c) 45 days
d) 60 days
24 Lok Adalat is a statutory body under which Act? C
a) BR Act
b) RBI Act
c) Legal Services Authority Act
d) Judicial Services Authority Act
25 Where a suit is settled under Lok Adalat, the compromise D
amount may be made within a period not exceeding
a) 12 months
b) 18 months
c) 24 months
d) 36 months
26 Unused cartridges should be in the custody of C
a) Armed Guards
b) Cash Officer
c) Branch Manager
d) Service Manager
27 Armed guard should hold how many cartridges while on B
duty?
a) 5
b) 10
c) 15
d) 20
28 Under which section, TDS is applicable on cash withdrawals B
exceeding ₹1 crore under Finance Act, 2019?
a) Section 194M
b) Section 194N
c) Section 194 i(j)
 d) Section 194K
29 Where the cash withdrawals of a customer is in excess of ₹1 C
crore, the TDS deducted is
a) 1%
b) 1.5%
c) 2%
d) 2.5%
30 The following entity is not exempted from the TDS applied on B
cash withdrawals exceeding ₹1 crore in a year.

a) Authorised dealers in Foreign Exchange

b) Commission agents or traders
c) Cash Replenishment Agencies
d) Business Correspondent

31 Current Repo Rate is C

a) 5%
b) 5.10%
c) 5.15%
d) 5.25%
32 For shortage in soiled notes remittance and currency chest B
balances of ₹20 denomination, what is the penalty levied by (Denomination
RBI? upto 50, ₹50
per piece;
Denomination
of ₹100 and
above, equal
to the value of
denomination
a) ₹20 per piece in addition to loss
b) ₹50 per piece in addition to loss
c) ₹100 per piece in addition to loss
d) ₹5000 penalty irrespective of number of pieces
33 For mutilated notes detected in soiled notes remittance, the B
penalty levied by RBI for denomination of ₹100 is (₹50 per piece
irrespective of
denomination)
a) ₹20 per piece
b) ₹50 per piece
c) ₹100 per piece
d) ₹5000 penalty irrespective of denomination
34 For non-functioning of CCTVs or non-utilisation of NSMs, B
RBI officials can impose a penalty on currency chest
branches to the tune of
a) ₹1000 for each irregularity
b) ₹5000 for each irregularity
c) ₹10000 for each irregularity
d) ₹50000 for all irregularities
35 For a BSBD small account, total credits in the account in a C
year should not exceed
 a) ₹10000
b) ₹50000
c) ₹100000
d) ₹200000
36 For a BSBD small account, total debits by way of cash A
withdrawals and transfers will not exceed
a) ₹10000
b) ₹50000
c) ₹100000
d) ₹200000
37 Which of the following statements if TRUE? D
a) Remittances from abroad can be credited to a small
account
b) ATM card can be issued but normal annual fee is
applicable.
c) A customer can open small accounts in more than one
bank
d) Maximum balance in the small account should not
exceed ₹50000 at any time.
38 Maximum deposits permitted under SCSS is B
a) ₹10 lakhs
b) ₹15 lakhs
c) ₹20 lakhs
d) ₹25 lakhs
39 Deposits accepted under SCSS cannot be withdrawn before
the expiry of a period of how many years from the date of A
opening of an account?
a) 1 year
b) 2 years
c) 3 years
d) 5 years
40 A penalty of 1.5% of the deposit shall be deducted if the A
account opened under SCSS is closed on or after the expiry (1% penalty if
of the account is
closed on or
after expiry of
2 yrs from
opening of
account
a) 1 year but before the expiry of two years
b) 2 years
c) 3 years
d) Before the end of 5th year
41 The Banking Ombudsman scheme is introduced under which B
Act?
a) Section 35A of RBI Act
b) Section 35A of BR Act
c) Section 30(5) of RBI Act
d) Section 30(5) of BR Act
42 Maximum compensation that can be awarded by a Banking B
 Ombudsman is
a) ₹10 lakhs
b) ₹20 lakhs
c) ₹25 lakhs
d) No maximum limit
43 Appellate authority against the decision of Banking C
Ombudsman is vested with
a) High court of the concerned circle
b) Supreme Court
c) Deputy Governor of the RBI
d) Chairman of IBA
44 As per MSME guidelines, a medium enterprise is an D
enterprise engaged in the manufacture or production where
the investment in P&M is
a) More than ₹10 lakh but does not exceed ₹2 crore
b) More than ₹25 lakh but does not exceed ₹10 crore
c) More than ₹2 crore but does not exceed ₹5 crore
d) More than ₹5 crore but does not exceed ₹10 crore
45 As per RBI guidelines, a loan is categorised as SMA-1 where C
a) Principal or interest payment overdue for more than 7
days
b) Principal or interest not overdue for more than 30 days
c) Principal or interest payment overdue between 31-60
days
d) Principal or interest payment overdue between 61-90
days
46 A UTR consists of how many characters? D
a) 17
b) 19
c) 20
d) 22
47 Where there is delay in returning the failed payment under C
RTGS, the original customer is eligible to receive
compensation @
a) Current Repo rate
b) 1% above repo rate
c) 2% above repo rate
d) 3% above repo rate
48 Maximum compensation that can be awarded by Banking D
Ombudsman for Digital transactions
a) ₹5 lakh
b) ₹10 lakh
c) ₹15 lakh
d) ₹20 lakh
49 As per CTS guidelines, how many grids are functional? B
a) 2
b) 3
c) 4
d) 5
50 Which of the following grid headquarters is NOT true? D
a) New Delhi
b) Mumbai
c) Chennai
d) Kolkata
51 Under Limited Liability of customer for unauthorised digital C
transactions, if the customer reports the fraud within how
many days, the customer liability would be zero?
a) Same day
b) 1 day
c) 3 days
d) 7 days
52 Under limited liability for customer guidelines, where the B
customer reports the transaction between four to seven days
of receiving communication, the customer liability is limited to
a maximum of
a) ₹5000
b) ₹10000
c) ₹25000
d) ₹50000
53 Under limited liability for customer guidelines, the liability of D
the customer is
a) ₹10000
b) ₹25000
c) ₹50000
d) Entire loss until he reports the transaction
54 Under limited liability for customer guidelines, within how B
many days will the eligible amount lost by the customer be
notionally reversed to the customer’s account?
a) Within 7 days
b) Within 10 days
c) Within 15 days
d) Within 30 days
55 What is the maximum cut off period for resolution of the D
complaint as per the Limited liability of customer guidelines?
a) 30 days
b) 45 days
c) 60 days
d) 90 days
56 Maximum time for collection of outstation cheques drawn on B
major cities is
a) 7 days
b) 10 days
c) 14 days
d) 15 days
57 As per the latest guidelines of RBI, how many NEFT batches D
would be conducted in a day?
a) 23 batches
b) 28 batches
 c) 42 batches
d) 48 batches
58 NEFT transactions after usual banking hours of banks are A
expected to be automated transactions initiated using which
modes?
a) Straight through processing
b) Swift processing
c) Automated processing
d) None of these
59 As per NEFT guidelines, the beneficiary’s account should be C
either credited or the transaction returned within how many
hours of settlement of the batch?
a) Half an hour
b) 1 hour
c) 2 hours
d) 3 hours
60 Agency commission rate for pension payments is C
a) ₹50 per transaction
b) ₹60 per transaction
c) ₹75 per transaction
d) ₹80 per transaction
CREDIT

Prepared by Sri K.B.Rajesh

Chief Manager (Faculty)

SBILD, Vizianagaram
 MCQ ON CREDIT

1 Retail & Digital Banking Group (R&DBG) Branches would normally handle A
all Retail loans, which include
a. All Per Seg & exposures pertaining to Agri/SME upto Rs. 50 Cr except
schematic lending
b. All Per Seg & exposures pertaining to Agri/SME upto Rs. 25 Cr except
schematic lending
c. All Per Seg & exposures pertaining to Agri/SME upto Rs. 10 Cr except
schematic lending
d. Only Personal Segment loans including Home loans

2 Commercial Clients Group (CCG) Branches shall normally handle proposals C

for exposures of
a. Above Rs. 500 crores b. Rs. 50 crores & above
c. Above Rs. 50 crores d. All SME loans

3 Which of the following facilities are exempted from verticals’ lending norms D
(R &DBG, CCG, CAG), if availed on Standalone basis
a. Bills discounting limits against letters of credit (outside ABF)
b. e-DFS/ WHR proposal.
c. Portfolio Purchase of Asset Backed Securitisation. d. All of the above

4 The loan Portfolio of IBG comprises of Commercial Banking, which does not C
include
a. India Based Loans
b. Trade Finance and Commercial Loans to local and other overseas
entities.
c. e-DFS/ WHR proposal.
d. None of the above

5 Stressed Assets Resolution Group (SARG) focus on management and B

resolution of Non-Performing Assets and assets under stress, which does
not include
a. SMA-2 b. SMA -1
c. NPA accounts only d. AUCA accounts

6 Project Finance Strategic Business Unit (PFSBU) will serve the structuring A
needs of all Business verticals with focus on all new large proposals of high
value corporates
a. > Rs.1000 Cr from banking system
b. > Rs.10000 Cr from banking system
c. > Rs.100 Cr from banking system
d. > Rs.500 Cr from banking system

7 CIR shall also be mandatory for Non-Borrowing Group concern where A

turnover is
 a. Rs. 100 Cr b. Rs. 50 Cr. c. Rs. 1000 Cr d. No Limit

8 A _________ is one who does not engage constructively with the Bank, B
defaulting in timely repayment of dues while having ability to pay, thwarting
Bank’s efforts for recovery of their dues by not providing necessary
information sought, denying access to assets financed/collateral securities,
obstructing sale of securities, etc.
a. Wilful defaulter b. Non-Cooperative Borrower
c. Secured Loan Defaulter d. None of the above

9 The cut off limit for classifying a borrower as non-cooperative is aggregate C

fund- based and nonfund based facilities of
a. Rs.1 crore or its equivalent from the Bank.
b. Rs.50 crore or its equivalent from the Bank.
c. Rs.5 crore or its equivalent from the Bank.
d. No limit fixed by the Bank

10 In terms of ______the Bank cannot grant any loans and advances on the A
security of its own shares.
a. Section 20(1) of the Banking Regulation Act, 1949
b. Section 20(1) of the RBI Act
c. Section 20(2) of the Banking Regulation Act, 1949
d. Section 20(2) of the RBI Act

11 The term “Loans and Advances” in the Bank shall not include D
a. Loans or advances against Government securities, life insurance policies
or the Bank’s fixed deposit;
b. Loans or advances to the Agricultural Finance Corporation Ltd
c. Call loans made by banking companies to one another
d. All of the above.

12 Unless sanctioned by the Board of Directors/Management Committee, Bank D

shall not grant loans and advances aggregating Rs.25 lacs & above or its
equivalent to -
a. Directors (including the Chairman/Managing Director) of other banks
b. Directors of Scheduled Co-operative Banks
c. Directors of Subsidiaries / Trustees of Mutual Funds/Venture Capital
Funds
d. All of the above

13 The term ‘credit facility’ will not include loans or advances against - D
a. Government securities b. Life Insurance policies, Fixed or other deposits
c. Temporary ODs upto Rs. 25000/- and purchase of cheques up to Rs.
5000/-, at a time.
d. All of the above
14 Substantial interest in relation to a company means - the holding of a A
beneficial interest by an individual or his spouse or minor child, whether
singly or taken together, in the shares thereof, the amount paid upon which
exceeds
 a. Rs. 5 lac or 10% of the paid-up capital of the company, whichever is less
b Rs. 5 lacs or 15% of the paid-up capital of the company, whichever is less
c. Rs. 50 lacs or 10% of the paid-up capital of the company, whichever is
less
d. Rs. 5 lacs or 5% of the paid-up capital of the company, whichever is less

15 Substantial interest in relation to a firm means - the beneficial interest held B

therein by an individual or his spouse or minor child, whether singly or taken
together, which represents more than
a. 5% of the total capital subscribed by all the partners of the said firm.
b. 10% of the total capital subscribed by all the partners of the said firm.
c. 10 % of the total capital subscribed by one of the partners of the said firm.
d. No separate limit given

16 Under Restrictions on Advances against Sensitive Commodities under C

Selective Credit Control, Bank is free to fix prudential margins on advances
against sensitive commodities. But in case of advance against Levy Sugar
___
a. a minimum margin of 5% will apply.
b. a minimum margin of 20% will apply.
c. a minimum margin of 10% will apply.
d. No minimum margin required.

17 A ___ is a defaulter who deliberately stone walls legitimate efforts of the B

Bank to recover their dues.
a. Wilful defaulter b. Non-Cooperative Borrower
c. Secured Loan Defaulter d. None of the above

18 Loans against security of shares, convertible bonds, convertible debentures B

and units of equity oriented mutual funds to individuals should not exceed
the limit of ____ per individual if the securities are held in physical form, and
____if the securities are held in dematerialized form.
a. Rs.10 lacs & Rs. 25 lakh b. Rs.10 lacs & Rs. 20 lakh
c. Rs.5 lacs & Rs. 10 lakh d. Rs.5 lacs & Rs.15 lakh

19 While takeover of advances, obtaining ECR is made mandatory only for A

exposures of above
a. Rs. 50 crores/ USD 10 Mio or its equivalent
b. Rs. 10 crores/ USD 2 Mio or its equivalent
c. Rs. 500 crores/ USD 100 Mio or its equivalent
d. Rs. 5 crores/ USD 1 Mio or its equivalent

20 In takeover of advances upto Rs. 10 crore where ECR is not available, the C
CRA of the borrower should be ____ and the proposed total exposure must
be backed by minimum ___ Collateral Security.
a. SB-7 or better, 60% b. SB-8 or better, 75%
c. SB-7, 75% d. SB-5, 90%

21 In takeover of advances above Rs. 10 Cr and upto Rs. 50 Cr where ECR is D

not available, the CRA of the borrower should be ___ and incremental
 exposure, if any, must be backed by min. additional ____ Collateral Security
with the existing Bank
a. SB-7 or better, 10% b. SB-8 or better, 25%
c. SB-7, 75% d. SB-7, proportionate

22 In takeover of advances, where ECR is available CRA should be ___ and B

ECR should be _____
a. SB-8 or better, A or better b. SB-9 or better, BBB or better
c. SB-7 or better, BBB or better d. SB-10 or better, AA or better

23 In takeover of advances, wherever Credit Rating Agency is changed, ECR is C

to be obtained from ___ rating agencies and ___ of them is considered.
a. Two, Higher b. Three, Lower
c. Two, Lower d. Two, Average

24 In takeover of advances, for exposures above Rs. 50 crores and ECR is not A
available, the CRA of the borrower should be
a. SB-5 or better b. SB-3 or better
c. SB-6 or better d. SB-7 or better

25 In takeover of loans, for exposures above Rs. 50 crores, where ECR is A

available CRA should be ___ and ECR should be ___
a. SB-9 or better, BBB+ or better b. SB-8 or better, A+ or better
c. SB-7 or better, BBB or better d. SB-10 or better, AA or better

26 In takeover of loans, Stock and Receivables Audit is to be conducted prior to A

disbursement of any credit facilities above ___ except for units having ECR
of _____
a. Rs. 5.00 Cr, A- and better b. Rs. 10.00 Cr, A- and better
c. Rs. 10.00 Cr, B- and better d. Rs. 15.00 Cr, AA- and better

27 Increase in exposure should not exceed 30% (where exposure is upto B

Rs.1.00 cr) and ____ whichever is higher (where total taken over exposure
is > Rs.1.00 cr) at the time of take over from other Banks.
a. 15% or Rs. 20 lacs b. 15% or Rs. 30 lacs
c. 10% or Rs. 30 lacs d. 15% or Rs. 50 lacs

28 In case of takeovers, Security should be Created and Perfected within ___ of C

disbursement.
a. 30 days b. 60 days c. 90 days d. 120 days

29 The Following shall not be considered as Take over of Advances from D

Another Bank and as such take over norms shall not be applicable:
a. When joined a consortium as an additional member
b. When joined a consortium and exposure of an existing member is taken
over partly / wholly
c. When joined an MBA to take additional exposure d. All the above

30 Norms for takeover of advances under Agriculture segment (other than Agro B
 based industries) – which of the following is NOT true:
a. The maximum amount eligible for takeover would be Rs.2 crores.
b. Administrative clearance should be obtained from NWCC for loans above
Rs.2 crores to Rs.5 crores
c. Administrative clearance should be obtained from RCCC for loans above
Rs.5 crores. d. All are True

31 Norms for takeover of advances under Agriculture segment (other than Agro C
based industries) – which of the following is NOT true:
a. No dilution in the security in takeover proposals is permitted.
b. Only Standard Assets and regular accounts are eligible for takeover.
c. The account should be a standard account in the books of the other
banks/Financial Institution (FI) during the preceding 3 years.
d. All are True

32 Norms for takeover of advances under Agriculture segment (other than Agro D
based industries) – which of the following is NOT true
a. The term loans of incomplete nature are not eligible for takeover.
b. ATLs with a minimum 2 years repayment program left are only eligible.
c. The maximum amount eligible for takeover would be Rs.2 crores
d. All are True

33 Which of the following are covered under ‘Credit Exposure’ D

a. All types of funded and non-funded credit limits
b. Credit Exposure on account of derivative products using credit conversion
factor;
c. Facilities extended by way of equipment leasing, hire purchase finance
and factoring services.
d. All are covered.
34 Which of the following are covered under ‘Investment exposure’ D
a. Investments in shares and debentures of companies
b. Investments in Commercial Papers and similar commitments
c. Investments in PSU bonds d. All are covered.

35 Which of the following is NOT True about Prudential Exposure Norms C

a. Exposure Ceiling Limits in case of a Group of Connected Counterparties
to be 25% of Bank’s Tier I Capital
b. Exposure to a Single NBFC 15% of Bank’s Tier I Capital
c. Exposure to a Group of Connected NBFCs 20% of Bank’s Tier I Capital
d. All are True

36 Large borrower is defined as the sum of all exposure values of the bank to a C
counter party or a group of connected counter parties is equal to or above
_______. The aggregate exposure to all “large borrowers” should not
exceed
a. 20% of the Bank’s Tier- I Capital, 800 % of Bank’s Tier I Capital.
b. 10% of the Bank’s Tier- I Capital, 600 % of Bank’s Tier I Capital.
c. 10% of the Bank’s Tier- I Capital, 800 % of Bank’s Tier I Capital.
d. 15% of the Bank’s Tier- I Capital, 1000 % of Bank’s Tier I Capital
37 A Specified Borrower is a borrower having Aggregate Sanctioned Credit C
Limit of more than:
a. Rs. 25,000 Cr at any time from April 1, 2019 onwards
b. Rs. 15,000 Cr at any time from April 1, 2019 onwards
c. Rs. 10,000 Cr at any time from April 1, 2019 onwards
d. Rs. 5,000 Cr at any time from April 1, 2019 onwards

38 Maximum aggregate exposure on Single / Borrower Group for Non- A

corporates should be of
a. Rs. 100 cr or its equivalent b. Rs. 50 cr or its equivalent
c. Rs. 10 cr or its equivalent d. Rs. 25 cr or its equivalent

39 Exposure of Banking sector for loans below and up to Rs.500 cr or its A

equivalent
a. No Restrictions b. 10% of the Bank’s Tier- I Capital
c. 5% of the Bank’s Tier- I Capital d. 20% of the Bank’s Tier- I Capital

40 For exposure of the Borrower from the Banking System in case of new D
accounts above Rs.500 Cr is
a. Consortium Arrangement is Mandatory.
b. Minimum Share in consortium shall normally be 10% of the total exposure
from Banking system
c. Consortium should have ideally 5-6 banks d. Both a & b

41 Which of the following is NOT true about Substantial Exposure Limit D

a. Bank has fixed these limits for the Large Borrowers to mitigate credit
concentration risk
b. These are aligned with the regulatory prudential exposure norms.
c. Not deemed as caps but are intended to serve as triggers to Business
Groups for closer monitoring.
d. Breach of Substantial Exposure level would be construed as waiver

42 Which of the stipulations for Substantial Exposure (Exposure over and D

above the following) are INCORRECT
a. Large Borrower (Single Counterparty or Group of Connected
Counterparty) -10% of Tier I Capital
b. Aggregate of substantial Exposures to Single Borrowers - Not to exceed
300% of Tier I Capital
c. Aggregate of substantial Exposures to Borrower Groups - Not to exceed
600% of Tier I Capital
d. All are correct
43 RBI has defined unsecured exposure as an exposure where the realizable B
value of the security (primary plus collateral), as assessed by the Bank, is
ab-initio not more than
a. 5% of the outstanding exposure. b. 10% of the outstanding exposure.
c. 25% of the outstanding exposure. d. 20% of the outstanding exposure.

44 The CRMD will review term exposures (of over three years) at ___ intervals C
with a view to ensuring that there is no Asset – Liability mismatch beyond
 the permissible limits.
a. Quarterly b. Monthly c. Half yearly d. Yearly

45 Term Loans (loans with residual maturity of over three years) at any point of A
time should not in aggregate exceed ____ of the total advances of the Bank.
A trigger for review is set when this limit reaches to ___ of the total advances
of the Bank.
a. 40%, 38 % b. 25%, 22% c. 50%, 45% d. 40%, 35%

46 The average maturity of any term loan, including moratorium, normally A

should not exceed ___ except loans under / Rehabilitation / Core Industry /
Infrastructure / Renewable Energy Projects / Securitization of Rent and Toll
receivables.
a. 10 years b. 7 years c. 20 years d. 15 years

47 Bank’s exposure to real estate including residential mortgages, commercial A

real estate and indirect finance, etc., will not exceed _____
a. 30% of the Bank’s total advances. b. 30% of the Bank’s Tier I Capital.
c. 30% of the Bank’s Net advances. d. 30% of the Bank’s total C & I
advances.

48 Prudential Limits on Intra-Group Exposure in case of Single Group Entity D

Exposure should be
a. 5% of Paid-up Capital and Reserves in case of unregulated financial
services companies
b. 10% of Paid-up Capital and Reserves in case of regulated financial
services companies.
c. 5% of Paid-up Capital and Reserves in case of non-financial companies
d. All are True

49 Prudential Limits on Intra-Group Exposure in case of Aggregate Group B

Exposure should be
a. 20% of Paid-up Capital and Reserves in case of all unregulated financial
services companies taken together
b. 20% of Paid-up Capital and Reserves in case of the group i.e. all group
entities (financial and nonfinancial) taken together.
c. 20% of Paid-up Capital and Reserves in case of all non-financial
companies taken together
d. All are true

50 Non Fund Based facility(ies) not to exceed ____ Bank’s total fund based C
exposure.
a. 25% b. 50 % c. 100 % d. 125%

51 Review of NFB facility to be carried out by CPMD at ____ intervals. A

a. Quarterly b. Monthly c. Half yearly d. Yearly

52 The Bank shall endeavor to restrict domestic exposure to a particular B

industry to a maximum of ___ of the Bank’s total domestic exposure.
 a. 10 % b. 15% c. 20% d. 25%

53 Review shall be done by CRMD at _____intervals or at a lesser frequency if D

significant change occurs in the industry profile.
a. Quarterly b. Monthly c. Half yearly d. Yearly

54 In case of Industry Exposure settings and Monitoring of Industry Exposures, A

approved exposure ceilings are ensured to be within the formula driven
exposure limit called for each industry.
a. Risk Adjusted Exposure Limits b. Risk Identified Exposure Limits
c. Risk Mitigated Exposure Limits d. Risk Adjourned Exposure Limits

55 In case of Industry Exposure settings and Monitoring of Industry Exposures, B

CRMC has the authority to deviate from the RAEL upto _____.
a. + 5 bps b. + 10 bps c. + 20 bps d. + 50 bps

56 The Bank’s aggregate exposure to the capital markets shall not exceed ____ A
of its net-worth as on March 31 of the previous year.
a. 40% b. 25% c. 50% d. 100%

57 CRMD, at ___ intervals will undertake review of actual capital market A

exposure under the ceiling of 40% and submit to ACB.
a. Quarterly b. Monthly c. Half yearly d. Yearly

58 Within the overall Bank’s aggregate exposure to the capital markets ceiling, B
Bank’s investment in shares, convertible bonds / debentures, units of equity-
oriented mutual funds and all exposures to Venture Capital Funds (VCFs)
[both registered and unregistered] shall not exceed ____ of Bank’s net-worth
as on March 31 of the previous year.
a. 40% b. 20% c. 50% d. 100%

59 Within the overall Bank’s aggregate exposure to the capital markets ceiling B
of 40%, Bank’s exposure to stockbrokers shall not exceed ____ of its net-
worth as on March 31 of the previous year.
a. 40% b. 10% c. 50% d. 100%

60 Exposure to Factoring Services should be restricted to ____ of the Bank’s B

total advances as at the close of the immediately preceding financial year.
a. 40% b. 10% c. 50% d. 100%

61 The ___ rating is assigned to NPA accounts by default. A

a. SB-16 b. SB-11 c. SB-15 d. No such rating

62 Hurdle rate ___ has been prescribed under internal risk rating model for D
considering new connection or enhancement in credit limits.
a. SB-16 b. SB-11 c. SB-15 d. SB -10
63 Dynamic Review of Internal Rating of borrowers who are enjoying aggregate A
limits of ____ or its equivalent and above in all Business Groups, including
IBG, is to be ensured at Half yearly intervals
a. Rs. 500 Crore b. Rs. 100 Crore c. Rs. 1000 Crore d. 50 Crore

64 In case of borrowers with exposure of ___ Dynamic Review of the rating to C

be conducted as and when triggers are observed.
a. Rs. 50 Crores & above but below Rs. 500 crore
b. Rs. 10 Crores & above but below Rs. 100 crore
c. Rs. 10 Crores & above but below Rs. 500 crore
d. Rs. 100 Crores & above but below Rs. 500 crore

65 Following borrowers are exempted from the purview of non- trigger based D
dynamic review of ratings provided there is no change in their rating and
status
a. having ECR of AAA, AA b. PSUs with Maharatna status
c. PSUs with Navaratna status d. All of the above

66 For units having CRA ___ and worse, the CRA shall be reviewed at ___ B
intervals, except the accounts those are covered under Dynamic Rating.
a. SB-11, Quarterly b. SB-11, Half Yearly
c. SB-10, Quarterly d. SB-10, Half Yearly

67 At present there are ____ agencies accredited by RBI for the purpose of risk C
weighting the Bank’s claim for computation of Capital adequacy.
a. 5 b. 6 c. 7 d. 8

68 Which of the following is NOT an agency accredited by RBI for the purpose C
of risk weighting the Bank’s claim for computation of Capital adequacy.
a. India Ratings and Research Private Limited (India Ratings)
b. Brickwork c. Magic Info d. INFOMERICS

69 Any waiver for non-obtention of ECR is to be approved by the sanctioning A

authority not below
a. RCCC b. RCC c. NWCC d. ZOCC

70 As per RBI guidelines, Bank uses a separate rating model ___ to assess the A
credit risk associated with lending to banks.
a. BERI b. REBI c. SEBI d. BESI

71 With a view to avoiding ___ , no branch/FO should give any verbal or in- D
principle commitment to lend to a prospective borrower, FB or NFB facilities,
unless detailed appraisal has been made and proper sanction is in place.
a. Creditors Liability b. Bankers Liability
c. Borrowers Liability d. Lenders’ Liability

72 Obtention of “In- principle” approval shall be mandatory (except IBG) in A

respect of new connections with exposures above ____ in all the verticals.
a. Rs.50 Cr b. Rs.10 Cr c. Rs.100 Cr d. Rs. 25 Cr
73 Under the turnover method, working capital requirement is computed at a D
minimum of ____ of turnover, of which, at least four-fifths is provided by the
Bank and balance one-fifth represents the borrower’s contribution towards
margin for working capital.
a. 5% b. 20% c. 80% d. 25%

74 Turnover method is applicable for sanction of fund based working capital A

limit of up to ____ as per recommendations of Nayak Committee which had
looked into issues relating to financing of SME.
a. Rs.5 crores or equivalent b. Rs.1 crores or equivalent
c. Rs.50 crores or equivalent d. Rs.25 crores or equivalent

75 Projected Balance Sheet method is applicable for borrowers who are

engaged in manufacturing, services and trading activities and who require
fund based working capital (WC) finance of ____
a. above Rs.2 crores or equivalent b. above Rs.25 crores or C
equivalent.
c. above Rs.5 crores or equivalent d. No such limit

76 Project Vivek is applicable for all eligible SME proposals up to A

a. Rs. 50 Cr in R&DBG. b. Rs. 5 Cr in R&DBG.
c. Rs. 50 Cr in MCG d. No limit

77 Which of the following is NOT true about Discounting of Bills under Letter of C
Credit
a. Discounting of bills under Letters of Credit should be only in relation
to LCs issued by us / First Class Banks (Domestic) and
Correspondent Banks (Foreign) and should not exceed the approved
exposure limits on these banks.

b. Purchase/discount/negotiation bills under LCs should be done only in

respect of genuine commercial and trade transactions of the borrower
constituents who have been sanctioned regular credit facilities by the
bank.

c. The prescription would prohibit the Bank from accepting bankable

business from non-borrower constituents such as Govt. / Research /
Defence / Educational organizations and other statutory organizations
who have no borrowing arrangements with any FI / bank.

d. It is also not the intention of the Bank to turn down acceptable bill
discounting business against LCs of First Class banks /
correspondent banks, from borrowers who may not be dealing with us
for their other banking requirements.

78 No BG should normally have a maturity of more than____ . Bank may A

consider issuing BGs beyond maturity of ____ only against 100% cash
margin or with prior approval of the competent authority.
 a. ten years, ten years b. ten years, five years
c. five years, five years d. one year, ten years

79 Term Loans sanctioned and not availed within ___ months from the date of C
sanction need revalidation.
a. 3 b. 2 c. 6 d. 12

80 Normally, term loan may be financed in the ratio of ___ for debt and equity, A
though ideally ___ is preferred.
a. 70:30; 67:33 b. 67:33; 50:50 c. 67:33; 70:30 d. 50:50; 67:33

81 For Financing Infrastructure Projects, Minimum DSCR not to fall below ___ B
in any year during the currency of the loan.
a. 1.25 b. 1.10 c. 1.33 d. 1.50

82 Which of the following is not true about minimum upfront equity for Financing D
Infrastructure Projects
a. AAA/ AA ratings and Maharatna PSUs- 25% b. A rating: 40%
c. BBB and below and unrated: 50% of the Promoters equity.
d. All are True

83 Which of the following is not true about Pre-shipment finance D

a. Referred to as ‘Export Packing Credit (EPC)’
b. extended as working capital for purchase of raw materials, processing,
packing, transportation and warehousing of goods meant for export.
c. Both, manufacturers as well as merchant exporters, are eligible to avail
Rupee Packing Credit at concessional rate of interest.
d. Pre-shipment credit is available only in foreign currency

84 Which of the following is an essential feature(s) for Pre-shipment finance D

a. an export order b. letter of credit
c. liquidation of the credit by submission of export documents within a
stipulated period.
d. either a or b & c

85 Which of the following is not true about Post-shipment finance

a. Can be extended upto 100 % of the invoice value of goods. C
b. Maximum period usually allowed for realization of export proceeds is nine
months from the date of export
c. DGFT have issued guidelines in regard to eligibility, basis and
maintenance of Post-shipment finance accounts by banks, follow up of
export bills, liquidation of post-shipment finance, etc.
d. Post-shipment finance is also available both in Rupee and specified
foreign currencies.

86 What is the minimum period for which a Commercial Paper can be issued D
a) 4 days b) 5 days c) 6 days d) 7 days
87 What is the maximum period for which a Commercial Paper (CP) can be B
 issued
a) 6 months b) 12 months c) 18 months d) 24 months

88 Commercial Paper can be issued in denominations of ____ or multiples A

there of
a) Rs 5 lacs b) Rs 10 lacs c) Rs 15 lacs d) Rs 20 lacs

89 Commercial Paper can be issued either in the form of C

a) Promissory note b) Dematerialised form
c) Both (a) and (b) above d) None

90 Who among the following can act as an Issuing and Paying Agent (IPA) for A
issuance of CPs
a) Scheduled Commercial Bank b) Non Scheduled commercial bank
c) Both (a) and (b) above d) None

91 Maximum, how many Corporate Loans can be outstanding at any point of A

time, for shoring up of NWC
a) 1 b) 2 c) 3 d) 4

92 Maximum no of Corporate Loans that can be outstanding at any point of time C

per borrower for purposes other than Shoring up of NWC
a) 1 b) 2 c) 3 d) 4

93 For availing Corporate Loan, what should be the minimum FACR for shoring B
up of NWC
a) 1.20 b) 1.25 c) 1.30 d) 1.35

94 For availing Corporate Loan, what should be the minimum DSCR for shoring A
up of NWC
a) 1.20 b) 1.25 c) 1.30 d) 1.35

95 For availing Corporate Loan, what should be the minimum Interest Coverage B
Ratio for shoring up of NWC
a) 1.25 b) 1.50 c) 1.75 d) 2.00

96 Who is the competent authority for permitting deviation in respect of D

minimum levels in respect of FACR, DSCR and Interest Coverage Ratio (for
availing Corporate Loan)
a) CGM b) DMD c) MD d) No deviation is permitted

97 What can be maximum cap on Gross Block, if a Corporate Loan is B

sanctioned for meeting Ongoing capex
a) 10% b) 20% c) 25% d) 30%

98 Corporate Loan can be considered for which of the following purposes D

a) Shoring up of NWC b) Repayment of high cost debt
c) Ongoing capex inclg Research and Development expenditure
 d) All the above

99 What is the minimum amount of loan that can be sanctioned under B

Corporate Loan
a) Rs 25 lacs b) Rs 50 lacs c) Rs 75 lacs d) Rs 100 lacs

100 What is the maximum amount of loan that can be sanctioned under A
Corporate Loan in respect of Non-Corporate borrowers
a) Rs 10 cr b) Rs 15 cr c) Rs 20 cr d) Rs 50 cr
101 What is the applicable Risk Weight in respect of unit rated AAA A
a) 20% b) 30% c) 50% d) 100%

102 What is the applicable Risk Weight in respect of unit rated AA B

a) 20% b) 30% c) 50% d) 100%

103 What is the applicable Risk Weight in respect of unit rated A C

a) 20% b) 30% c) 50% d) 100%

104 What is the applicable Risk Weight in respect of unit rated BBB D
a) 20% b) 30% c) 50% d) 100%

105 What is the applicable Risk Weight in respect of unit rated BB & below C
a) 120% b) 130% c) 150% d) 100%

106 What is the additional Score under New CRA Models in respect of unit rated A
AAA
a) 5.00 b) 3.50 c) 2.00 d) 1.00

107 What is the additional Score under New CRA Models in respect of unit rated B
AA
a) 5.00 b) 3.50 c) 2.00 d) 1.00

108 What is the additional Score under New CRA Models in respect of unit rated C
A
a) 5.00 b) 3.50 c) 2.00 d) 1.00

109 What is the additional Score under New CRA Models in respect of unit rated D
BBB
a) 5.00 b) 3.50 c) 2.00 d) 1.00

110 What is the additional Score under New CRA Models in respect of unit rated B
BB & below
a) 5.00 b) Zero c) 2.00 d) 1.00

111 Country Risk is assumed when ……% or more of the borrower’s cashflow or C
assets are located outside India
a) 20% b) 30% c) 25% d) 15%

112 Dynamic Review of internal Ratings is applicable in respect of C

 a) Total exposure of Rs.10 Crores & above with triggers
b) Total exposures of Rs.500 Crs & above without triggers
c) Both (a) and (b) d) None

113 CRA Model for Non Banking Finance Companies (NBFCs)/ Housing Finance B
Companies (HFCs) is applicable for exposures
a) Rs.10 lacs and above b) Rs.25 lacs and above
c) Rs.50 lacs and above d) Rs.100 lacs and above

114 Reporting for Central Repository of Information on Large Credits (CRILC) is C

applicable for all loan accounts
a) Upto Rs 5 crores b) Rs 5 cr and above
c) above Rs.5 crores d) above Rs.10 crores

115 Under Credit Monitoring Arrangement (CMA), information under Form I D

represents
a) Operating statement b) Analysis of balance sheet
c) Funds flow statement
d) Particulars of existing/proposed limits from the banking system

116 Under Credit Monitoring Arrangement (CMA), information under Form II A

represents
a) Operating statement b) Analysis of balance sheet
c) Funds flow statement
d) Particulars of existing/proposed limits from the banking system

117 Under Credit Monitoring Arrangement (CMA), information under Form III B
represents
a) Operating statement b) Analysis of balance sheet
c) Funds flow statement
d) Particulars of existing/proposed limits from the banking system

118 Under Credit Monitoring Arrangement (CMA), information under Form IV C

represents
a) Operating statement b) Analysis of balance sheet
c) Comparative Statement of Current Assets and Current Liabilities
d) Particulars of existing/proposed limits from the banking system

119 Under Credit Monitoring Arrangement (CMA), information under Form V C

represents
a) Operating statement b) Analysis of balance sheet
c) Funds flow statement
d) Particulars of existing/proposed limits from the banking system

120 CRMD (Industry Research) conducts study of industries/ sectors, where the A
Bank’s exposure is ______ of the Bank’s total domestic exposure.
a) 0.25% or above b) 1.00% or above
c) 0.50% or above d) 0.75% or above
121 What is the applicable Credit Conversion Factor (CCF) in respect of C
Financial Bank Guarantees
a) 20% b) 50% c) 100% d) 75%

122 What is the applicable Credit Conversion Factor (CCF) in respect of B

Performance Bank Guarantees
a) 20% b) 50% c) 100% d) 75%

123 Full form of IFRS B

a) Indian Financial Reporting Standards
b) International Financial Reporting Standards
c) International Financial Reporting System
d) International Financial Review Standards

124 Guarantees for Mobilisation of advances should be classified as B

a) Performance Bank Guarantees b) Financial Bank Guarantees
c) Either (a) or (b) d) None of the above

125 Bid bonds on behalf of exporters should be classified as A

a) Performance Bank Guarantees b) Financial Bank Guarantees
c) Either (a) or (b) d) Both (a) or (b)

126 Guarantees favouring Customs or Port Authorities for release of goods A

should be classified as
a) Performance Bank Guarantees b) Financial Bank Guarantees
c) Either (a) or (b) d) Neither (a) nor (b)

127 Countries have been placed in ___ risk categories as per the risk perception A
a) 11 b) 13 c) 10 d) 16

128 Guarantees for disputed liabilities like Revenue Dues, litigation pending at A
Courts should be classified as
a) Performance Bank Guarantees b) Financial Bank Guarantees
c) Either (a) or (b) d) Both (a) or (b)

129 Legal Entity Identifier (LEI) is a ____ that identifies every legal entity (across A
the globe) or structure that is party to a financial transaction, in any
jurisdiction.
a) 20 digit unique code b) 16 digit unique code
c) 20 digit Industry specific code d) 20 digit Country specific code

130 Obtention of Legal Entity Identifier (LEI) has been made mandatory by RBI B
for the Borrowers having total fund based and non fund based exposure of
___ in a phased manner
a) Rs. 1 Cr and above b) Rs. 5 Cr and above
c)Rs. 50 Cr and above d)Rs. 25 Cr and above
 ANSWERS

1 2 3 4 5 6 7 8 9 10
A C D C B A A B C A

11 12 13 14 15 16 17 18 19 20
D D D A B C B B A C

21 22 23 24 25 26 27 28 29 30
D B C A A A B C D B

31 32 33 34 35 36 37 38 39 40
C D D D C C C A A D

41 42 43 44 45 46 47 48 49 50
D D B C A A A D B C

51 52 53 54 55 56 57 58 59 60
A B D A B A A B B B

61 62 63 64 65 66 67 68 69 70
A D A C D B C C A A

71 72 73 74 75 76 77 78 79 80
D A D A C A C A C A

81 82 83 84 85 86 87 88 89 90
B D D D C D B A C A

91 92 93 94 95 96 97 98 99 100
A C B A B D B D B A

101 102 103 104 105 106 107 108 109 110
A B C D C A B C D B

111 112 113 114 115 116 117 118 119 120
C C B C D A B C C A

121 122 123 124 125 126 127 128 129 130
C B B B A A A A A B
FOREIGN EXCHANGE AND TRADE FINANCE

Prepared by Sri M.Narendra Kumar

Chief Manager (Faculty)

SBILD, Vizianagaram
 FOREGIN EXCHANGE AND TRADE FINANCE

Q.NO Question Answer

1 Expand ECB?
A) External commercial Borrowing A
B) External Country Borrowing
C) External Credit Bank
D) Exponential Credit Borrowing
2 Expand FDI
A) Foreigner Disclosed Income B
B) Foreign Direct Investment
C) Forex Direct Investment
D) Forex Direct Income
3 Expand DGFT
A) Director General Forex Trade D
B) Deputy General Forex Trade
C) Directory General Foreign Trade
D) Director General of Foreign Trade
4 Expand FEDAI
A) Foreign Exchange Derivatives Association of India C
B) Forex Derivative Association of India
C) Foreign Exchange Dealers Association of India
D) Forex Derivatives Associati Indica
5 Expand LIBOR
A) London Interbank Offer Rate A
B) London International Banks Offer Rate
C) Least In Banks Offered Rates
D) London Interbank Offer Rate
6 Expand UCPDC?
A) Uniform Customs and Practices of Documentary credits A
B) Uniform Credit and Provisions of Documentation in Credit
C) Unique Customs and Practices of Disclosed credits
D) Uniform Customs and Practices of Disclosures for Customers
7 Current Version of UCPDC that is being followed by banks?
A) UCP450 D
B) UCP500
C) UCP550
D) UCP600
8 Expand FEMA?
A) Foreign Exchange Management Act A
B) Forex Management Act
C) Foreign Exchange Market Act
D) Forex Market Act
9 FEMA, 1999 came into effect on?
A) 31.05.1999 B
B) 31.05.2000
 C) 31.07.1999
D) 31.07.2000
10 Expand FCRA?
A) Foreign Contribution Regulation Act A
B) Forex Contribution Regulation Act
C) Foreign Countries Regulation Act
D) Foreign Country Remittance Advance
11 Which one of the following methods is safest for an Exporter?
A) Letter of Credit C
B) Collection
C) Advance Payment
D) Open Account
12 Expand OFAC
A) Office of Foreign Assets Control A
B) Organization of Foreign Assets and Control
C) Origination of Forex Assets and Credits
D) Organization for Forex Assets and Credits
13 Current Foreign Trade Policy is for the period of?
A) 2013-18 D
B) 2014-19
C) 2016-20
D) 2015-20
14 The code which is issued to Exporter/Importer is called?
A) EXIM CODE C
B) CODE FOR EXPORTER/IMPORTER
C) IEC
D) FOREX CODE
15 IEC code is issued by?
A) RBI D
B) FEDAI
C) Ministry of Commerce
D) DGFT
15 Validity of IEC code can be verified from?
A) Ministry of Commerce website B
B) DGFT
C) RBI website
D) Website of Any bank
16 Expand FATF?
A) Foreign Account Tax Fund C
B) Foreign Assets Transnational Fund
C) Financial Action Task Force
D) Foreign Accounts Task Force
17 Expand IDPMS?
A) Integrated Data processing and Management Solution C
B) Integrated Data Processing and Management Software
C) Import Data Processing and Monitoring System
D) Import Data Processing and Monitoring Software
18 Expand OPGSP?
A) Online Payment Gateway Service Providers A
 B) Online Performance Guarantee and Service Providers
C) Online Payment Guarantee and Service Providers
D) Online Performance Guarantee and Service Providers
19 Proceeds on account of exports must be realized with in a period of?
A) 3 Months C
B) 6 Months
C) 9 Months
D) 12 Months
20 Exports proceeds can be realized through OPGSP upto a maximum
of ?
A) USD 2500/- C
B) USD 5000/-
C) USD 10000/-
D) USD 25000/-
21 Expand EEFC?
A) Export Earners Foreign Currency account B
B) Exchange Earners Foreign Currency account
C) Exchange Earners Forex Current account
D) Exporters Earning Foreign Currency account
22 Expand DDA?
A) Domestic Dollar Account
B) Diamond Dollar Account
C) Dormant Dollar Account
D) Dynamic Dollar Account
22 EEFC can be opened in the form of ?
A) Savings Bank account B
B) Current Account
C) Term Deposit account
D) Any one of the above
23 EEFC can be opened by?
A) Resident Individuals A
B) NRIs
C) Foreign Nationals
D) FIIs
24 The sum total of accruals in an EEFC account should be converted
into rupees on or before?
A) Last day of Succeeding Calendar Quarter
B) Last day of Succeeding Calendar Month
C) Last day of financial year.
D) Last day of the same month.
25 DDA can be opened by ?
A) Any firm/companies dealing in type of commodities D
B) Firms/ Companies dealing in cut diamonds
C) Firms/ Companies dealing in rough diamonds
D) B&C
26 Expand EDPMS?
A) Electronic Data Processing and Monitoring System B
B) Export Data Processing and Monitoring System
C) Export Data Processing and Monitoring Solutions
 D) Electronics Data processing and Management Software
27 Expand EDI?
A) Exports Data Information B
B) Electronic Data Interchange
C) Export Data Interchange
D) Electronic Data Indicator
28 Form that is used for declaration of export of goods?
A) EDF A
B) SOFTEX
C) GDF
D) Any one of the above
29 Form that is used for declaration of export of software?
A) EDF B
B) SOFTEX
C) GDF
D) Any one of the above
30 EDF has to be submitted by exporter to AD bank with in a period of ?
A) 14 days B
B) 21 days
C) 28 days
D) 30 days
31 Expand ACU?
A) Association of Currency Units C
B) Advanced Currency Unit
C) Asian Clearing Union
D) Asian Currency Units
32 UCP 600 came into effect from ?
A) 1st January, 2007 B
B) 1st July, 2007
C) 1st January, 2017
D) 1st July, 2017
33 In a Letter of Credit, the bank which issues LC is called?
A) Issuing Bank A
B) Advising Bank
C) Nominating Bank
D) Confirming Bank
34 In a Letter of Credit, the bank which informs about the issuance of
authenticated LC is called?
A) Issuing Bank B
B) Advising Bank
C) Nominating Bank
D) Confirming Bank
35 In a Letter of Credit, the bank which undertakes to pay/honour in the
event the issuing bank fails to honour the payment, is called?
A) Nominating Bank D
B) Negotiating Bank
C) Reimbursing Bank
D) Confirming Bank
36 Which of the following is safest payment method for Importer?
 A) Advance Payment B
B) Open account
C) Collection
D) Letter of Credit
37 Payment in sight bill has to be paid?
A) Immediately on receiving documents A
B) After cooling period
C) On a particular due date as mentioned in documents
D) After a week time
38 Payment in Usance Bill has to be paid?
A) Immediately on receiving documents C
B) After cooling period
C) On maturity date as per documents/LC
D) After a week time
39 Expand URR?
A) Uniform Rules for Reimbursements B
B) Uniform Rules for Bank-to-Bank Reimbursements
C) Uniform Reimbursement Rules
D) Uniform Rules and Regulations
40 INCOTERMS are published by?
A) ICC A
B) World Bank
C) Basel
D) RBI
41 Expand FOB?
A) Freight on Board C
B) Funding Of Bank
C) Free On Board
D) Freight Of Board
42 Expand URC?
A) Uniform Rules for Collection A
B) Uniform Rules and Customs
C) Uniform Regulations and Customs
D) Uniform Reimbursement on Collection
43 What is CIF as per INCOTERMS?
A) Carriage, Insurance and Freight D
B) Cost, Investment and Fee
C) Carriage, Investment and Fee
D) Cost, Insurance and Freight
44 Buyers credit is ?
A) Financed by domestic bank to Exporter D
B) Financed by domestic bank to importer
C) Financed by overseas bank to exporter
D) Financed by overseas bank to importer
45 Suppliers credit is?
A) Credit extended by domestic bank to Exporter D
B) Credit extended by domestic bank to importer
C) Credit extended by Exporter bank to exporter
D) Credit extended by supplier to importer
46 Which one of the following are ways to finance Importers?
A) Issuing Letter of Credit D
B) Buyers Credit
C) Suppliers Credit
D) All the above
47 Which one of the following are ways to finance Exporters?
A) Pre-shipment credit D
B) Post-shipment Credit
C) Post-shipment credit in Foreign currency
D) All the above
48 Maximum repayment period under PCFC?
A) 60 DAYS D
B) 90 DAYS
C) 180 DAYS
D) 360 DAYS
49 What is a forward contract?
A) An agreement between buyer and seller to exchange D
monies/goods at an agreed rate
B) An agreement between buyer and seller to exchange
monies/goods on a future date
C) An agreement between buyer and seller to exchange
monies/goods in an agreed quantity/amount
D) All the above
50 Expand ECGC?
A) Export and Import Guaranteed Credit of India C
B) External Credit and Guarantee Compliance in India
C) Export Credit Guarantee Corporation of India
D) External Credit Guarantee Corporation of India
51 Working hours of Foreign exchange market?
A) 8.00 AM TO 5.00 PM D
B) 9.00 AM TO 6.00 PM
C) 10.00 AM TO 5.00 PM
D) 24 Hours
52 As on date the most traded currency pair in the world?
A) USDINR C
B) USDJPY
C) EURUSD
D) GBPUSD
53 In Currency pair EURUSD, USD is called as?
A) Major Currency D
B) Minor Currency
C) Base Currency
D) Quote Currency
54 In Currency pair USDJPY, USD is called as?
A) Major Currency C
B) Minor Currency
C) Base Currency
D) Quote Currency
55 When foreign currency is quoted in terms of domestic currency, it is
 called as ?
A) Domestic Quote C
B) Forex Quote
C) Direct Quote
D) Indirect Quote
56 When domestic currency is quoted in terms of foreign currency, it is
called as?
A) Domestic Quote D
B) Forex Quote
C) Direct Quote
D) Indirect Quote
57 What is hedging?
A) A risk management method A
B) An instrument in finance market
C) A speculation method
D) None of the above
57 Which one of the following instrument do not help in hedging?
A) A forward contract with underlying exposure D
B) Options with underlying exposure
C) Derivatives
D) IPO
58 What is SWAP?
A) An agreement to exchange two financial instruments/cash D
flows on pre-determined dates.
B) An agreement to exchange two financial instruments/cash
flows at pre-determined rates.
C) An agreement to buy/sell back a pre determined quantity at a
predetermined rate.
D) All the above.
59 Expand MIBOR?
A) Mumbai Interbank Offer Rate A
B) Minimum Interbank Offer Rate
C) Maximum Interbank Offer Rate
D) Medium Interbank Offer Rate
60 What is trade date, in a forex transaction?
A) Date on which, amount is credited to the counterparty B
B) Date on which a transaction is undertaken.
C) A or B
D) None of the above
61 What is Value date, in a forex transaction?
A) Date on which, amount is credited to the counterparty A
B) Date on which a transaction is undertaken.
C) A or B
D) None of the above
62 In a Spot value transaction, amount will be credited to counterparty
on?
A) T+1st working day B
B) T+2nd working day
C) T+3rd working day
 D) T+4th working day
63 Expand ADR?
A) Automatic Depository Receipt B
B) American Depository Receipt
C) Approved Depository Receipt
D) Authorized Depository Receipt
64 Expand GDR?
A) Government Depository Receipt B
B) Global Depository Receipt
C) Gold Depository Receipt
D) Geographic Depository Receipt
65 Expand SWIFT?
A) Society for world wide interbank financial telecommunications A
B) State wide interface for technology
C) Society for world inter forex technology
D) None of the above
66 What is NOSTRO Account?
A) Other bank account maintained with us. B
B) Our account in another country with a bank
C) Our account in our country with another bank
D) None of the above
67 Travellers proceeding to countries other than Iraq, Libya, Islamic
Republic of Iran, Russian Federation and other Republics of
Commonwealth of Independent States can carry foreign currency
notes not exceeding ____ per visit or its equivalent?
A) USD 2000 C
B) USD 2500
C) USD 3000
D) USD 5000
68 Travellers proceeding to countries Iraq, Libya can carry foreign
currency notes not exceeding ____ per visit or its equivalent?
A) USD 2000 D
B) USD 2500
C) USD 3000
D) USD 5000
69 Any person resident in India, may take outside India (other than to
Nepal and Bhutan) currency notes of Government of India and
Reserve Bank of India notes up to an amount not exceeding
_______ per person?
A) Rs. 25000/- A
B) Rs. 50000/-
C) Rs.100000/-
D) Rs. 250000/-
70 A person may bring foreign exchange into India from any place
outside India without declaration in CDF, where the aggregate value
of the foreign exchange in the form of currency notes, bank notes or
travellers cheques brought in by such person at any one time does
not exceed _____ or its equivalent and/ or the aggregate value of
foreign currency notes brought in by such person at any one time
 does not exceed _______?
A) USD 3000/- & USD 5000/- C
B) USD 5000/- & USD 10000/-
C) USD 10000/- & USD 5000/-
D) USD 10000/- & USD 20000/-
71 Expand CDF?
A) Currency Declaration Form A
B) Cash Declaration Form
C) Counter Declaration Form
D) Country Declaration Form
72 A resident individual/firm cannot open which type of the following
accounts for foreign exchange?
A) SB AC D
B) RFC AC
C) EEFC
D) NRE AC
73 An NRI cannot open which of the following types of accounts?
A) NRE AC D
B) NRO AC
C) FCNR(B)
D) EEFC
74 A foreign national who arrived to India on tour is allowed to open
which type of the following account?
A) NRE AC B
B) NRO AC
C) RFC AC
D) SB AC
75 A foreign national who arrived to India for education purpose is
allowed to open which type of the following account?
A) NRE AC B
B) NRO AC
C) RFC AC
D) SB AC
76 A foreign national who arrived to India on employment is allowed to
open which type of the following account?
A) NRE AC D
B) NRO AC
C) RFC AC
D) SB AC
77 Who is an NRI?
A) A person who has resided in India for a minimum period of B
185 days in the previous year
B) A person who has not resided in India for a minimum period of
182 days in the previous year
C) A person who has stayed outside India for a maximum period
of 180 days in the previous year.
D) A person who has not stayed in India for a minimum period of
185 days in the last three years.
78 Expand PIO?
 A) Person of Indian Origin A
B) Pension Information order
C) Person from International organization
D) Person of Israel Origin
79 NRE account can be opened in the denomination of?
A) Indian Rupee A
B) Any freely convertible currency
C) Any currency
D) None of the above
80 NRO account can be opened in the denomination of?
A) Indian Rupee A
B) Any freely convertible currency
C) Any currency
D) None of the above
81 NRE/NRO account can be opened in the form of?
A) Savings Bank account D
B) Current account
C) Fixed deposit or RD account
D) Any of the above
82 NRE/NRO/FCNR (B) Account can be opened jointly with Resident ?
A) True A
B) False
83 Allowed modes of operation when an NRE/NRO/FCNR (B) account
opened by an NRI, jointly with a resident?
A) Either or Survivor C
B) Only Jointly to operate
C) Former or survivor
D) Any one of the above
84 FCNR(B) account can be opened in the denomination of?
A) Indian Rupee C
B) Any foreign Currency
C) Any freely convertible foreign currency
D) Any of the above
85 FCNR (B) account can be opened in the form of?
A) Savings Bank account C
B) Current account
C) Term deposit
D) Any of the above
86 Term Deposit under FCNR (B) to be opened for a minimum and
maximum period of ?
A) One year & five years A
B) Two years & four years
C) Three years & five years
D) Five Years & ten years
87 Which of the following type of transactions is not allowed among
NRE,NRO and FCNR (B) accounts?
A) NRE ac to NRE ac D
B) NRO ac to NRO ac
C) FCNR (B) ac to NRE ac
 D) NRO ac to NRE ac
88 Maximum amount that can be repatriated from NRE/FCNR (B)
accounts?
A) No limit A
B) USD 1 Million
C) USD 2 Million
D) USD 5 Million
89 Maximum amount that can be repatriated from NRO account in a
financial year?
A) No limit B
B) USD 1 Million
C) USD 2 Million
D) USD 5 Million
90 A person resident outside india and having business interest in India
can open which of following type account?
A) NRE account D
B) NRO Account
C) RFC account
D) SNRR account
91 Expand SNRR account?
A) Special and Resident Rupee account C
B) Special Non-resident Repatriable account
C) Special Non-Resident Rupee account
D) None of the above
92 Persons resident in Nepal and Bhutan can have accounts in India
with the conditions?
A) Account will be in Indian rupee C
B) With an authorised dealer only
C) Both the above
D) None of the above
93 Maximum amount that can be remitted freely under Liberalized
Remittance Scheme?
A) USD 100000/- C
B) USD 200000/-
C) USD 250000/-
D) USD 300000/-
94 LRS facility is available only to?
A) Resident individuals A
B) Resident Firms/ Corporates/partnership firms
C) HUFs
D) Trusts
95 Under LRS, remittance can be made for which of the following
purpose/s?
A) Private visits to any country (except Nepal and Bhutan) D
B) Gift or Donation or employment
C) Business travel
D) All the above
96 Under LRS, remittance cannot be made for which of the following
purpose?
 A) Medical treatment D
B) Studies abroad
C) Emigration
D) Speculation
97 Under LRS, remittance can be made in which of the following
currencies?
A) USD D
B) EURO
C) GBP
D) Any freely convertible foreign currency
98 ACU is headquartered in?
A) Delhi C
B) Mumbai
C) Tehran
D) Baghdad
99 Which of the following countries are members of ACU?
I) India, Pakistan, Bangladesh, Srilanka
II) Nepal, Bhutan, Myanmar
III) Iran, Maldives
A) I & II only D
B) II & III only
C) I & III only
D) I , II & III
100 RFC (Domestic) and RFC accounts can be opened in the
denomination of?
A) Foreign currency A
B) Indian Rupee
C) Either of the above
D) Both
101 RFC (Domestic) account can be opened in the form of?
A) Savings Bank account B
B) Current Account
C) Term Deposit
D) Any one of the above
102 RFC account can be opened in the form of?
A) Savings Bank account D
B) Current Account
C) Term Deposit
D) Any one of the above
103 Revaluation reserves are part of ?
A) Tier-I Capital B
B) Tier-II Capital
C) Any one of the above
D) None of the above
104 Which of the following is a derivative?
A) Forward contract D
B) Futures and Options
C) Swaps
D) All the above
105 Expand HTM?
A) Housing loan Till Maturity B
B) Held Till Maturity
C) Held Term Maturity
D) Housing Term Maturity
106 Expand AFS?
A) Agriculture Financial Scheme C
B) Auto Finance Scheme
C) Available For Sale
D) Agri Funding Scheme
107 Expand HFT?
A) Housing Finance Till Maturity B
B) Held For Trading
C) Held For Term end
D) Housing Finance Term
108 Expand YTM?
A) Yield To Maturity A
B) Yield Till maturity
C) Yield Term Maturity
D) Yield Time Maturity
109 Expand FCCB?
A) Foreign cash and currency board D
B) Foreign Currency Convertible basis
C) Foreign Cash and Carry Bond
D) Foreign Currency Convertible Bond
110 What is Stress test?
A) A psychological test to analyze employee capacity to sustain D
stress
B) A test to evaluate strong room fitness
C) A test to evaluate branch premises fitness
D) A test to evaluate a bank’s potential vulnerability to certain
unlikely but plausible events or movements in financial
variables.
111 Expand VaR?
A) Value at Risk A
B) Valuation Risk
C) Value Recovered
D) None of the above
112 What is VaR?
A) A tool for valuation bank’s real assets C
B) A tool to evaluate recovery performance
C) A tool to evaluate probable loss over a given period of time at
a given level of confidence
D) None of the above
113 Expand FETERS?
A) Foreign Exchange Transactions Electronic Report System A
B) Forex Terms Electronic Solution
C) Forex Transactions Reporting System
D) None of the above
114 Any contravention of a law either by self declaration or by imposition
by the regulatory authority In terms of Section 15 of the FEMA 1999,
any contravention under section 13 of FEMA 1999 may, on an
application made by the person committing such contravention, be
compounded within ____ days from the date of receipt of application
by the officers of RBI.
A) 60 days D
B) 90 days
C) 120 days
D) 180 days
115 Our Bank’s Global NRI Centre is located in?
A) Trichy D
B) Mumbai
C) Kolkata
D) Ernakulam
116 In forex spot rate quote, the difference between bid and offer is
called?
A) Spread A
B) Difference
C) Margin
D) Commission