KYC AML MODULE 4- VIGILANCE MASTER KEY

1. According to Bank’s guidelines on fraud prevention in SRTO which of the following statement
is/are correct :

I) Registration of vehicle and noting of Bank’s hypothecation charge in the books of RTO to be
done and verified from “vahan.nic.in” site.

II) Physical verification of assets created should not be insisted.

III) Assets/security created out of Bank’s finance to be verified immediately after disbursement.

IV) Inspection of the vehicles and borrower to be done immediately after default of one instalment
and procedure for Seizure to be initiated so that fraud if any, get unearthed immediately

Ans: Only I, III and IV

2. According to Bank’s guidelines on fraud prevention in WHR which of the following statement
is/are correct :

I) Meaningful pre-sanction survey to be carried out to ascertain identity, address, credit

worthiness and integrity of the Proprietor of the firm. II) Adequate Insurance Cover for the
commodity / stock to be ensured, due date of insurance to be diarized.

III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX.

IV) Any adverse report on Collateral Manager to be shared immediately with Corporate Centre.

Ans: Only I, II, III and IV

3. Fraud Mitigation Measures include surprise verification of Agri gold loans. In surprise verification
of gold loans the identified official should ensure that the number of gold loan bags tally with the
number of accounts reported in the:

Ans: Loan Balance File/CCOD file (generated at EoD of previous working day)

4. Which option is incorrect in respect of following statement? Vigilance as a tool ensures:

Ans: Work life balance

5. According to Bank’s guidelines on fraud prevention in E-DFS, which of the following statement
is/are correct :

I) Bank wise segregation of stock be ensured. Diversion of funds to entities engaged in unrelated
activities be examined properly

II) Depletion of stock to be converted into reduction in liability

III) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the key fields
provided by the certifying Chartered Accountants.
IV) Pre/Post sanction surveys to be carried out in a meaningful manner.

Ans: Only I, II, III and IV

6. In COVID-19 Pandemic environment fraudsters may try to open new accounts containing terms
such as COVID / CORONA. According to Bank’s guidelines on fraud prevention which of the following
statement is/are correct:

I) Customers should be made aware of the increasing risk of online frauds through phishing emails,
SMS, fraudulent loan and moratorium offers, fake COVID-19 sites and apps, fake banking and
insurance websites etc.

II) Branches should be more vigilant while opening accounts in the name of charitable institutions/
NGOs.

III) Sudden increase of Government credit observed in accounts of the person who may not be
entitled for such grants, should be discreetly enquired into, before allowing withdrawal.

IV) A list of such accounts opened since February 2020 may be extracted and verified

Ans: Only I, II, III and IV

7. The process of investigation will be completed within ___days of receipt of complaint under
Whistle Blower Policy.

Ans: 45 Days

8. The Reviewing Authority, under Whistle Blower Policy shall submit quarterly status report with
Action Taken Report to the :

Ans: Audit Committee of the Board (ACB)

9. Preventive Vigilance Committee (PVC) is one of the tools for exercising preventive vigilance.
Which of the following statement is/are correct:

I) The Preventive Vigilance Committee is neither a ‘power centre’ nor the sole means for exercising
preventive vigilance.

II) It is akin to the ‘Knowledge Circle’, aimed at prevention of loss and enhancement of performance

III)The meetings of PVCs be held at least once in 6 months.

IV) The PVC submits status report and Action Taken Report to the Audit Committee of the Board on
annual basis.

Ans: Only I and II

10. PIDPI means

Ans: Public Interest Disclosure & Protection of informer

11. Bank’s guidelines are in place for Fraud prevention and mitigation measures in SME loans. which
of the following statement is/are correct in respect of frauds owing to fabricated financial and
forged title deed:I) Check the authenticity of the documents/ reports/ certificates etc. with UDIN
and the key fields provided by the certifying Chartered Accountants.

II) Reporting of Third-Party Entity (TPE) to IBA/ ICAI for black listing.

III) Justification of limits for the group concerns, proper assessment, satisfying about
business model is essential to avoid accommodation loans.

IV) Obtention of CIBIL report only on borrowers and not on guarantors.

Ans: Only I, II and III

12. If Whistle Blower is aggrieved by any action on the ground that he is being victimized due to the
fact that he had filed a complaint or disclosure, he may file an application before the

Ans: Reviewing Authority

13. According to Bank’s guidelines on fraud prevention in GSS/ Stand Up India/ MUDRA which of
the following statement is/are correct :

I) Loan proposal to be processed and accounts to be opened through LOS only.

II) Sanctioning officer to visit the unit, meet promoters and carry out proper due
diligence before sanctioning the loan.

III) Due diligence on supplier- supplier may be a related party.

IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record.

Periodic Encumbrance Certificate to be obtained.

Ans: Only I, II and IV

14. Which of the following is not among protection available to a whistle blower?

Ans: Protection from adverse penal action even when disclosure is frivolous

15. According to Bank’s guidelines on fraud prevention in High Value Banking Frauds, which of the
following statement is/are incorrect :I) Genuineness of the buyers should be verified to ascertain
their capability of huge buying

II) Meaningful analysis of stock statements should be carried out

III) Past track record and status of the customers may be ignored
IV) Financial statements and other documents should be thoroughly checked for their genuineness
through various online sources e.g. ROC website, UDIN, GSTN network etc. End use of the funds to
be ensured.

Ans: Only III

16. Which of the following statement is/are correct about activities under the purview of the Whistle
Blower Policy

I) Corruption, frauds, misuse/abuse of official position

II) Decision taken by the committees established by the Bank

III) Manipulation of data/ documents

IV) Accusation with non verifiable contents

Ans: Should be Only I and III (but two options with Only I, II and III) Choose the 3rd option (

17. As per Whistle Blower Policy of our Bank, the whistle blower is a/an ___

Ans: Employee of the Bank making a disclosure

18. According to Bank’s guidelines on fraud prevention in High Value Banking Frauds, which of the
following statement is/are correct :

I) A proper scrutiny of debtors should be carried out.

II) Financial statements should be scrutinised by field staff.

III) Genuineness of various documents should be ascertained.

IV) Effective exchange of information between banks should be strengthened.

Ans: Only I, II, III and IV

19. Which of the following is not a security feature in Cheque Truncation System (CTS-2010) for
Fraud Mitigation Measures?

Ans: Telephone number field

20. The Whistle Blower Policy has been modified as per

Ans: All the above

21. According to Bank’s guidelines on fraud prevention in SME loans relating to disposal of collateral
security which of the following statement is/are correct : I) Bank should file application for urgent
hearing before DRAT to vacate the stay to be complied/ ensured, and after vacating the stay, the
properties should be sold under SARFAESI Act, II) Details of property to be registered with CERSAI
and CERSAI ID certificate for mortgaged properties to be kept on record, III) Copies of title deeds
must be obtained at the time of creation of mortgage, IV) Independent verification of mortgaged
properties to be carried out only once
Ans: Only I and II

22. As a part of pre-sanction Survey for Home loans and Home Related Loans seven digit certificate
number on form 16 is to be verified form :

Ans: https://contents.tdscpc.gov.in

23. Who is the Reviewing Authority under whistle blower policy of the Bank?

Ans: CGM (Fraud Monitoring Department)

24. As a part of pre-sanction Survey for Home loans and Home Related Loans TAN of borrower and
employer as per Form 16 is to be verified form :

Ans: https://incometaxindiaefiling.gov.in

25. According to Bank’s guidelines on fraud prevention in collateral security which of the following
statement is/are correct :

I) TIR to be obtained after every 2 years or at the time of enhancement.

II) Display of Bank’s board at prominent place in the unit.

III) Proper scrutiny of the lawyer’s report and valuation report.

IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record.

Periodic Encumbrance Certificate to be obtained.

Ans: Only II, III and IV

26. Which of the following is NOT among different mechanisms of vigilance?

Ans: Coercive Vigillance

27. According to Bank’s guidelines on fraud prevention in Forex, which of the following statement
is/are correct :

I) Goods meant for export to be segregated from stocks meant for domestic sale.

II) Cheque facility is to be provided for EPC account

III) Export Packing Credit (EPC) to be released on request.

IV) Credit officials handling forex/ EPC to be given adequate training.

Ans: Only I and IV

28. According to Bank’s guidelines on fraud prevention in Forex, which of the following statement
is/are incorrect :

I) Goods meant for export to be segregated from stocks meant for domestic sale.

II) No Cheque facility is to be provided for EPC account

III) Export Packing Credit (EPC) to be released on request.

IV) Credit officials handling forex/ EPC to be given adequate training.

Ans: Only III

29. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the following
statement is/are correct :

I) Transfer of funds among the family concerns to be permitted without any limit.

II) TIR to be obtained after every 3 years or at the time of enhancement.

III) Noting of charge with revenue authority on mortgaged property to be ensured immediately
after creation of EM.

IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from other
banks/ FIs

Ans: Only II, III and IV

30. Cost on Preventive Vigilance vis a vis Corrective maintenance and failure cost follow a ratio

Ans: 1:10:100

1. Fraud Mitigation Measures include surprise verification of gold loans. What is the
stipulated periodicity for surprise verification in Agri gold loans?

Ans: Quarterly

2. Which of the following is NOT among Mandatory Standard Cheque Security Features as
per CTS 2010 Guidelines:
I) Standardized Field Placements
II) RBI’s Logo in UV Ink
III) Account Number Printed in Reverse in a Black Box
IV) UV Band in variable fields

Ans: Only II

3. The Reviewing Authority, under Whistle Blower Policy shall submit quarterly status report
with Action Taken Report to the :

Ans: Audit committee of the Board (ACB)

 4. Preventive Vigilance covers which areas of banking activities?

Ans: All of the above

5. Which of the following statement is/are incorrect about formation of Preventive Vigilance
Committees at branches / operating units of the Bank:

Ans: Branches having staff strength of 20 or more

6. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the
following statement is/are correct :
I) The immovable security (Primary or Collateral) to be inspected at the time of accepting
the property for the first time and yearly thereafter. & Ownership & Possession
status of the property to be ascertained by making enquiries with the neighbourhood and
occupant of the property to be complied with.
II) High value transactions in CC account to be scrutinized to ensure against possible
diversion / siphoning.
III) Noting of charge with revenue authority on mortgaged property to be ensured within 3
years of creation of EM.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from
other banks/ FIs

Ans: Only I, II and IV

7. Which of the following statement is/are correct about activities under the purview of the
Whistle Blower Policy
I) Corruption, frauds, misuse/abuse of official position
II) Decision taken by the committees established by the Bank
III) Manipulation of data/ documents
IV) Accusation with non verifiable contents

Ans: Only I, II and III (Same two options)

8. As per Alertness Award Scheme of the Bank, a citation or certificate of merit may be given
under :

Ans: Category I

9. Fraud Mitigation Measures include surprise verification of Agri gold loans. In surprise
verification of gold loans the identified official should ensure that the number of gold loan
bags tally with the number of accounts reported in the:

Ans: Loan Balance file / CCOD file (generated at the EoD of the previous working day)

10. Which of the following statement is/ are correct about Identification / Reporting /
Collation and Analysis of Near Miss Event (NME):
I) The Bank shall treat events for which recovery has been made on the same business day
of the event as NME.
 II) Capturing NMEs as many as possible, even though not all of them will have the same
importance.

Ans: Both I and II

11. According to Bank’s guidelines on fraud prevention in High Value Banking Frauds, which of
the following statement is/are incorrect :
I) Genuineness of the buyers should be verified to ascertain their capability of huge buying
II) Meaningful analysis of stock statements should be carried out
III) Past track record and status of the customers may be ignored
IV) Financial statements and other documents should be thoroughly checked for their
genuineness through various online sources e.g. ROC website, UDIN, GSTN network etc.
End use of the funds to be ensured.

Ans: Only III

12. Bank’s guidelines are in place for Fraud prevention and mitigation measures in SME loans.
which of the following statement is/are correct in respect of frauds owing to fabricated
financial and forged title deed:
I) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the
key fields provided by the certifying Chartered Accountants.
II) Reporting of Third-Party Entity (TPE) to IBA/ ICAI for black listing.
III) Justification of limits for the group concerns, proper assessment, satisfying about
business model is essential to avoid accommodation loans.
IV) Obtention of CIBIL report only on borrowers and not on guarantors.

Ans: Only I, II and III

13. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the
following statement is/are incorrect :
I) Business model/ need for all sister concerns and justification/ need for limits to be
established on approval. Transfer of funds among the family concerns to be probed with
extra due diligence.
II) TIR to be obtained after every 5 years or at the time of enhancement.
III) Irregularity report to be submitted annually and comments thereon to be acted upon.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from
other banks/ FIs

Ans: Only I and IV

14. Which option is incorrect in respect of following statement? Vigilance as a tool ensures:

Ans: Work life balance

15. Preventive Vigilance Committee (PVC) is one of the tools for exercising preventive
vigilance. Which of the following statement is/are incorrect :
I) 30% of staff members, minimum 3 officers / employees should be co-opted on the PVC
of each unit.
 II)The head of the Branch / Unit and official dealing with operational risk would be
permanent members and other members to be rotated at quarterly intervals.
III)The meetings of PVCs be held at least once in 6 months.
IV)The controllers (any officer from controlling office-designated for the purpose) to guide
the staff in identifying the areas of vulnerability to frauds / malpractices, visit the branches
/ units periodically and if possible, to attend meetings of PVCs, at least once in 6 months.

Ans: Only II and III

16. In case of payment of Non-Home cheque of ₹5 lakh and above and any suspicious
transactions irrespective of amount involved, the drawer is to be contacted over

Ans: Registered Mobile Number of the drawer

17. Which of the following is an apt description of a Near Miss Event (NME)

Ans: Near Miss Event is an event for which no financial loss has been incurred not because of
effective controls but due to fortuitous circumstances.

18. As per Whistle Blower Policy of our Bank, the whistle blower is a/an ___

Ans: Employee of the bank making a disclosure

19. PIDPI means

Ans: Public Interest Disclosure & Protection of Informer

20. Which of the following is NOT among Mandatory Standard Cheque Security Features as
per CTS 2010 Guidelines:
I) Standardized Field Placements
II) Account Number Field
III) LCPC Name along with CTS 2010
IV) UV Band in variable fields

Ans: Only III

21. Which of the following is not among protection available to a whistle blower?

Ans: Protection from adverse penal action even when disclosure is frivolous

22. Which among the following is/are among roles and responsibilities of Reviewing Authority
under Whistle Blower Policy :
I) Functioning of the Policy will be reviewed by the Reviewing Authority on quarterly basis
II)Upon receiving the investigation report along with Designated Authority’s remark and
recommendation, Reviewing Authority may take a view on closure of the complaint or
forward the same to the concerned department for initiation of disciplinary proceedings.
III) The Reviewing Authority will be responsible to implement the Policy and ensure that
the Policy is known to all employees
IV) If any person (Whistle Blower) is aggrieved by any action on the ground that he is being
victimized due to the fact that he had filed a complaint or disclosure, he may file an
 application before the Reviewing Authority, seeking redressal in the matter, wherein the
Reviewing Authority may give suitable directions to the concerned person or the
authority.

Ans: Only I, II and IV

23. Preventive Vigilance involves participation of -

Ans: Every employee

24. If Whistle Blower is aggrieved by any action on the ground that he is being victimized due
to the fact that he had filed a complaint or disclosure, he may file an application before
the

Ans: Reviewing Authority

25. Which among the following is/are among roles and responsibilities of Designated
Authority under Whistle Blower Policy :
I) The Designated Authority will be responsible to implement the Policy and ensure that
the Policy is known to all employees
II) Appoint/authorise any official to conduct an investigation under this Policy and submit
the report to Designated Authority.
III) Ensure that the identity of Whistle Blower is not disclosed. It also provides necessary
safeguard and protection to the employees who disclose the instances of unethical
practices/ behaviour observed in the Bank.
IV) The Designated Officer shall submit consolidated status report of the bank, to the Audit
committee of the Board (ACB) on quarterly basis, with Action Taken Report

Ans: Only I, II and III

26. According to Bank’s guidelines on fraud prevention in term loan, which of the following
statement is/are incorrect :
I) Disbursement to be made to the account of supplier
II) Immediate inspection after purchase of machinery to be done to ensure proper
utilization of funds.
III) Physical progress / status of project to be monitored on an ongoing basis
IV) Certificate from Chartered account and Architect to be submitted by the company on
annual basis for progress of construction of the said project in respect of amount incurred
on the project.

Ans: Only IV

27. Which of the following statement is/are correct about activities under the purview of
Alertness Award for Near Miss Events including Prevention/Detection/Foiling of Frauds
I) The contribution made by the staff members in prevention of frauds/ detection of
frauds/ foiling attempts of fraud/Near Miss Events should be significant and exemplary.
II) Detection of income leakage by staff members will also fall under the purview of this
scheme.
 Ans: Only I

28. Which of the following is not a security feature in Cheque Truncation System (CTS-2010)
for Fraud Mitigation Measures?

Ans: Telephone number field

29. While making payment of Non-Home cheque of ₹5 lakh and above and any suspicious
transactions irrespective of amount involved, if contacting customer is not possible/
successful, what should be the further course of action?

Ans: All of the above

30. NME stands for

Ans: Near Miss Event

1. Which of the following is among Mandatory Standard Cheque Security Features as per CTS 2010
Guidelines:
I) VOID Pantograph
II) Printer Name along with CTS 2010
III) Fugitive Background with Secondary Fluorescent Ink
IV) Cheque Colors & Background Mandatory CTS Standards

Ans: Only I, II, III and IV

2. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the following
statement is/are correct :
I) Transfer of funds among the family concerns to be permitted without any limit.
II) TIR to be obtained after every 3 years or at the time of enhancement.
III) Noting of charge with revenue authority on mortgaged property to be ensured immediately
after creation of EM.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from other
banks/ FIs

Ans: Only II, III and IV

4. Which of the following is among Mandatory Standard Cheque Security Features as per CTS
2010 Guidelines:
I) VOID Pantograph
II) RBI’s Logo in UV Ink
III) Fugitive Background with Secondary Fluorescent Ink
IV) Cheque Colors & Background Mandatory CTS Standards

Ans: Only I ,III and IV

5. What is incorrect as per Whistle Blower Policy of the Bank

 Ans: Whistle Blowers are investigators or finders of facts

6. Which of the following is the new feature in Cheque Truncation System (CTS-2010) for Fraud
Mitigation Measures?

Ans: New Rupee symbol

7. According to Bank’s guidelines on fraud prevention in High Value Banking Frauds, which of
the following statement is/are correct :
I) Genuineness of the buyers should be verified to ascertain their capability of huge buying
II) Meaningful analysis of stock statements should be carried out
III) Past track record and status of the customers may be ignored
IV) Financial statements and other documents should be thoroughly checked for their
genuineness through various online sources e.g. ROC website, UDIN, GSTN network etc. End
use of the funds to be ensured.

Ans: Only I, II and IV

8. In COVID-19 Pandemic environment fraudsters may try to open new accounts containing
terms such as COVID / CORONA. According to Bank’s guidelines on fraud prevention which
of the following statement is/are correct:
I) Extra Due Diligence should be applied while opening such accounts and KYC check must be
performed thoroughly
II) Vigilance should be exercised while dealing with FCRA / NPO / Charitable institutions /
other accounts in which donations in the name of COVID are being credited.
III) Due care should be taken to properly identify the persons claiming to be government
officials and seeking information which is normally not provided
IV) A list of such accounts opened since February 2021 may be extracted and verified

Ans: Only I, II and III

9. The scheme for Alertness Award for Near Miss Events including
Prevention/Detection/Foiling of Frauds is applicable to _________

Ans: all staff members, including regular, part-time and contract employees in the service
of the Bank

10. What is the new name of Scheme for Recognition & Reward of alertness in Staff Members ?

Ans: Alertness Award for Near Miss Events including Prevention/Detection/Foiling of

Frauds

11. Which of the following is NOT among Mandatory Standard Cheque Security Features as per
CTS 2010 Guidelines:
I) Standardized Field Placements
II) Account Number Field
 III) LCPC Name along with CTS 2010
IV) UV Band in variable fields
Ans: Only III
1. According to Bank’s guidelines on fraud prevention in E-DFS, which of the following
statement is/are correct :
I) Bank wise segregation of stock be ensured. Diversion of funds to entities engaged in
unrelated activities be examined properly
II) Depletion of stock to be converted into increase in liability
III) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the key
fields provided by the certifying Chartered Accountants.
IV) Pre/Post sanction surveys to be carried out in a meaningful manner.

Only I, III and IV

2. In COVID-19 Pandemic environment fraudsters may try to open new accounts containing
terms such as COVID / CORONA. According to Bank’s guidelines on fraud prevention which
of the following statement is/are correct:
I) Extra Due Diligence should be applied while opening such accounts and KYC check must be
performed thoroughly
II) Vigilance should be exercised while dealing with FCRA / NPO / Charitable institutions /
other accounts in which donations in the name of COVID are being credited.
III) Due care should be taken to properly identify the persons claiming to be government
officials and seeking information which is normally not provided
IV) A list of such accounts opened since February 2021 may be extracted and verified

Only I, II and III

3. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the
following statement is/are incorrect :
I) Business model/ need for all sister concerns and justification/ need for limits to be
established on approval. Transfer of funds among the family concerns to be probed with
extra due diligence.
II) TIR to be obtained after every 5 years or at the time of enhancement.
III) Irregularity report to be submitted annually and comments thereon to be acted upon.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from
other banks/ FIs

Only II and III

4. What is incorrect as per Whistle Blower Policy of the Bank

ANS: Whistle Blowers are investigators or finders of facts

5. According to Bank’s guidelines on fraud prevention in High Value Banking Frauds, which of
the following statement is/are correct :
 I) A proper scrutiny of debtors should be carried out.
II) Financial statements should be scrutinised by field staff.
III) Genuineness of various documents should be ascertained.
IV) Effective exchange of information between banks should be strengthened.

ANS: Only I, II, III and IV

6. As per Whistle Blower Policy of our Bank, the whistle blower is a/an ___

ANS: Employee of the bank making a disclosure

7. PIDPI means

ANS: Public Interest Disclosure & Protection of Informer

8. According to Bank’s guidelines on fraud prevention in WHR which of the following statement
is/are incorrect :
I) Warehouse/ Godowns to be visited and stocks to be verified periodically. II) Financing of
stocks held in borrowers godowns may be permitted.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX.
IV) It is to be ensured that underlying stocks are segregated/ properly tagged with Bank’s
name.

ANS: Only II

9. The action taken against each disclosure will be put up to the Reviewing Authority within
___days of receipt of complaint under Whistle Blower Policy.

ANS: 7 DAYS

10. Which of the following is not among protection available to a whistle blower?
ANS: Protection from adverse penal action even when disclosure is frivolous

11. According to Bank’s guidelines on fraud prevention in WHR which of the following statement
is/are correct :
I) Meaningful pre-sanction survey to be carried out to ascertain identity, address, credit
worthiness and integrity of the Proprietor of the firm. II) Adequate Insurance Cover for the
commodity / stock to be ensured, due date of insurance to be diarized.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX.
IV) Any adverse report on Collateral Manager to be shared immediately with Corporate
Centre.
ANS: Only I, II, III and IV

12. Bank’s guidelines are in place for Fraud prevention and mitigation measures in SME loans.
Which of the following statement is/are incorrect in respect of frauds owing to fabricated
 financial and forged title deed:
I) Check the authenticity of the documents/ reports/ certificates etc. with UDIN and the key
fields provided by the certifying Chartered Accountants.
II) Reporting of Third-Party Entity (TPE) to Law Enforcement Agencies for black listing.
III) Justification of limits for the group concerns, proper assessment, satisfying about
business model is essential to avoid accommodation loans.
IV) Conduct of periodic stock audit to be ensured and due closure of Audit report.

ANS: Only II

13. As a part of pre-sanction Survey for Home loans and Home Related Loans seven digit
certificate number on form 16 is to be verified form :
ANS: https://contents.tdscpc.gov.in

14. Bank’s guidelines are in place for fraud prevention and mitigation measures in SME loans.
which of the following statement is/are incorrect in respect of frauds owing to overvaluation
of collateral and diversion of fund :
I) Value of the property offered as security to be independently verified by the Bank official
and to be duly recorded.
II) Due diligence on the supplier to be done and opinion report to be obtained. Funds to be
disbursed directly to borrower.
III) During post disbursement inspection, details of machineries purchased to be verified and
periodic inspection to be done at regular intervals.
IV) Account with other Bank to be closed as and when detected.
ANS: Only II and III

15. According to Bank’s guidelines on fraud prevention in Forex, which of the following
statement is/are correct :
I) Goods meant for export to be kept along with stocks meant for domestic sale.
II) Credit limit to be sanctioned after detailed appraisal / assessment duly supported by
documentary evidences.
III) Export Packing Credit (EPC) to be released after obtaining copies of confirmed orders and
to be liquidated out of export proceeds.
IV) ECGC guarantee cover to be obtained and guidelines to be ensured.
ANS: Only II, III and IV

16. According to Bank’s guidelines on fraud prevention in WHR which of the following statement
is/are correct :
I) Warehouse/ Godowns to be visited and stocks to be verified periodically. II) It is to be
ensured that underlying stocks are segregated/ properly tagged with Bank’s name.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX.
IV) Financing of stocks held in borrowers godowns may be permitted.
ANS: Only I, II and III
17. According to Bank’s guidelines on fraud prevention in GSS/ Stand Up India/ MUDRA which
of the following statement is/are correct :
I) Loan proposal to be processed and accounts to be opened through LOS only.
II) Sanctioning officer to visit the unit, meet promoters and carry out proper due diligence
before sanctioning the loan.
III) Due diligence on supplier- supplier may be a related party.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record.
Periodic Encumbrance Certificate to be obtained.
ANS: Only I, II and IV

18. As per confidentiality mechanism of whistle blower, the identity of the whistle blower
remains with the:

Ans: Designated Authority

19. Which of the following statement is/are incorrect about formation of Preventive Vigilance
Committees at branches / operating units of the Bank-
ANS: Branches having staff strength of 20 or more

20. According to Bank’s guidelines on fraud prevention in term loan, which of the following
statement is/are correct :
I) Disbursement to be made to the account of borrower
II) Immediate inspection after purchase of machinery to be done to ensure proper utilization
of funds.
III) Transaction with related party to be allowed without restrictions
IV) Post sanction inspection to be done at periodic interval to ensure end use of funds
ANS: Only II and IV

21. According to Bank’s guidelines on fraud prevention in SRTO which of the following
statement is/are correct :
I) Registration of vehicle and noting of Bank’s hypothecation charge in the books of RTO to
be done and verified from “vahan.nic.in” site.
II) Physical verification of assets created should not be insisted.
III) Assets/security created out of Bank’s finance to be verified immediately after
disbursement.
IV) Inspection of the vehicles and borrower to be done immediately after default of one
instalment and procedure for Seizure to be initiated so that fraud if any, get unearthed
immediately
ANS: Only I ,III and IV

22. Which of the following is not a security feature in Cheque Truncation System (CTS-2010) for
Fraud Mitigation Measures?
ANS: Account Number Printed in a Black Box
23. Any employee (officer / award) willing to disclose information under Whistle Blower Policy,
may do so in which of the following manner?

ANS: All of these

24. According to Bank’s guidelines on fraud prevention in collateral security which of the
following statement is/are correct :
I) TIR to be obtained after every 2 years or at the time of enhancement.
II) Display of Bank’s board at prominent place in the unit.
III) Proper scrutiny of the lawyer’s report and valuation report.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record.
Periodic Encumbrance Certificate to be obtained.
ANS: Only II, III and IV

25. According to Bank’s guidelines on fraud prevention in collateral security which of the
following statement is/are incorrect :
I) Noting of charge with revenue authority on mortgaged property to be ensured within one
year of EM creation.
II) Issuance of Look out notice to be processed.
III) To make post-sanction inspection on appointment basis.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record.
Periodic Encumbrance Certificate to be obtained.
ANS: Only I and III

26. As a part of pre-sanction Survey for Home loans and Home Related Loans TAN of borrower
and employer as per Form 16 is to be verified form :
ANS: https://incometaxindiaefiling.gov.in

27. Who is the Reviewing Authority under whistle blower policy of the Bank?
ANS: CGM (Fraud Monitoring Department)

28. In case of payment of Non-Home cheque of ₹5 lakh and above and any suspicious
transactions irrespective of amount involved, the drawer is to be contacted over
ANS: Registered Mobile Number of the drawer

29. Which of the following is incorrect statement about Preventive Vigilance Committee
ANS: It is the sole means for exercising preventive vigilance

30. Preventive Vigilance Committee (PVC) is one of the tools for exercising preventive vigilance.
Which of the following statement is/are incorrect :
I) 30% of staff members, minimum 3 officers / employees should be co-opted on the PVC of
each unit.
II)The head of the Branch / Unit and official dealing with operational risk would be
 permanent members and other members to be rotated at quarterly intervals.
III)The meetings of PVCs be held at least once in 6 months.
IV)The controllers (any officer from controlling office-designated for the purpose) to guide
the staff in identifying the areas of vulnerability to frauds / malpractices, visit the branches /
units periodically and if possible, to attend meetings of PVCs, at least once in 6 months.

ANS: Only II and III

1. According to Bank’s guidelines on fraud prevention in GSS/ Stand Up India/ MUDRA which of
the following statement is/are incorrect :
I) Loan proposal to be processed and accounts to be opened through LOS only.
II) Physical verification of assets created should not be insisted.
III) Due diligence on supplier- supplier should not be a related party.
IV) OTMS alerts may be responded in routine manner

Ans: Only I and IV

2. Which of the following is not a security feature in Cheque Truncation System (CTS-2010) for
Fraud Mitigation Measures?

Ans: Telephone number field

3. As per Whistle Blower Policy of our Bank, the whistle blower is a/an ___

Ans: Employee of the bank making a disclosure

4. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the
following statement is/are correct :
I) The immovable security (Primary or Collateral) to be inspected at the time of accepting the
property for the first time and yearly thereafter. & Ownership & Possession status
of the property to be ascertained by making enquiries with the neighbourhood and occupant
of the property to be complied with.
II) High value transactions in CC account to be scrutinized to ensure against possible
diversion / siphoning.
III) Noting of charge with revenue authority on mortgaged property to be ensured within 3
years of creation of EM.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from
other banks/ FIs

Ans: Only I, II and IV

5. According to Bank’s guidelines on fraud prevention in High Value Banking Frauds, which of
the following statement is/are correct :
I) Genuineness of the buyers should be verified to ascertain their capability of huge buying
II) Meaningful analysis of stock statements should be carried out
III) Past track record and status of the customers may be ignored
IV) Financial statements and other documents should be thoroughly checked for their
 genuineness through various online sources e.g. ROC website, UDIN, GSTN network etc. End
use of the funds to be ensured.

Ans: Only I, II and IV

6. As a part of pre-sanction Survey for Home loans and Home Related Loans GST Registration
number of borrower and dealer is to be verified form :

Ans: https://cbec-easiest.gov.in

7. Preventive Vigilance involves participation of -

Ans: Every employee

8. While making payment of Non-Home cheque of ₹5 lakh and above and any suspicious
transactions irrespective of amount involved, if contacting customer is not possible/
successful, what should be the further course of action?

Ans: All of the above

9. According to Bank’s guidelines on fraud prevention in WHR which of the following statement
is/are correct :
I) Meaningful pre-sanction survey to be carried out to ascertain identity, address, credit
worthiness and integrity of the Proprietor of the firm. II) Adequate Insurance Cover for the
commodity / stock to be ensured, due date of insurance to be diarized.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX.
IV) Any adverse report on Collateral Manager to be shared immediately with Corporate
Centre.

Ans: Only I, II, III and IV

10. According to Bank’s guidelines on fraud prevention in Forex, which of the following
statement is/are correct :
I) Goods meant for export to be kept along with stocks meant for domestic sale.
II) Credit limit to be sanctioned after detailed appraisal / assessment duly supported by
documentary evidences.
III) Export Packing Credit (EPC) to be released after obtaining copies of confirmed orders and
to be liquidated out of export proceeds.
IV) ECGC guarantee cover to be obtained and guidelines to be ensured.

Ans: Only II, III and IV

11. According to Bank’s guidelines on fraud prevention in term loan, which of the following
statement is/are correct :
I) Disbursement to be made to the account of borrower
II) Immediate inspection after purchase of machinery to be done to ensure proper utilization
of funds.
III) Transaction with related party to be allowed without restrictions
IV) Post sanction inspection to be done at periodic interval to ensure end use of funds
 Ans: Only II and IV

12. Fraud Mitigation Measures include surprise verification of Agri gold loans. In surprise
verification of gold loans the random basis check involves:

Ans: Checking the ornaments for purity in respect of 30% or maximum of 100 gold loan accounts
whichever is less

13. According to Bank’s guidelines on fraud prevention in High Value Banking Frauds, which of
the following statement is/are incorrect :
I) Genuineness of the buyers should be verified to ascertain their capability of huge buying
II) Meaningful analysis of stock statements should be carried out
III) Past track record and status of the customers may be ignored
IV) Financial statements and other documents should be thoroughly checked for their
genuineness through various online sources e.g. ROC website, UDIN, GSTN network etc. End
use of the funds to be ensured.

Ans: Only III

15. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the
following statement is/are incorrect :

I) Business model/ need for all sister concerns and justification/ need for limits to be
established on approval. Transfer of funds among the family concerns to be probed with
extra due diligence.
II) TIR to be obtained after every 5 years or at the time of enhancement.
III) Irregularity report to be submitted annually and comments thereon to be acted upon.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from
other banks/ FIs

Ans: Only II and III

16. In COVID-19 Pandemic environment fraudsters may try to open new accounts containing
terms such as COVID / CORONA. According to Bank’s guidelines on fraud prevention which
of the following statement is/are correct:
I) Customers should be made aware of the increasing risk of online frauds through phishing
emails, SMS, fraudulent loan and moratorium offers, fake COVID-19 sites and apps, fake
banking and insurance websites etc.
II) Branches should be more vigilant while opening accounts in the name of charitable
institutions/ NGOs.
III) Sudden increase of Government credit observed in accounts of the person who may not
be entitled for such grants, should be discreetly enquired into, before allowing withdrawal.
IV) A list of such accounts opened since February 2020 may be extracted and verified

Ans: Only I, II, III and IV

17. The Reviewing Authority, under Whistle Blower Policy shall submit quarterly status report
with Action Taken Report to the :
Ans: Audit committee of the Board (ACB)

18. According to Bank’s guidelines on fraud prevention in Cash Credit Limits which of the
following statement is/are correct :
I) Transfer of funds among the family concerns to be permitted without any limit.
II) TIR to be obtained after every 3 years or at the time of enhancement.
III) Noting of charge with revenue authority on mortgaged property to be ensured
immediately after creation of EM.
IV) CIBIL report to be periodically generated and scrutinized to ascertain borrowing from
other banks/ FIs

Ans: Only II, III and IV

20. Which among the following is/are among roles and responsibilities of Reviewing Authority
under Whistle Blower Policy :
I) Functioning of the Policy will be reviewed by the Reviewing Authority on quarterly basis
II)Upon receiving the investigation report along with Designated Authority’s remark and
recommendation, Reviewing Authority may take a view on closure of the complaint or
forward the same to the concerned department for initiation of disciplinary proceedings.
III) The Reviewing Authority will be responsible to implement the Policy and ensure that the
Policy is known to all employees
IV) If any person (Whistle Blower) is aggrieved by any action on the ground that he is being
victimized due to the fact that he had filed a complaint or disclosure, he may file an
application before the Reviewing Authority, seeking redressal in the matter, wherein the
Reviewing Authority may give suitable directions to the concerned person or the authority.

Ans: Only I, II and IV

21. According to Bank’s guidelines on fraud prevention in collateral security which of the
following statement is/are incorrect :
I) Noting of charge with revenue authority on mortgaged property to be ensured within one
year of EM creation.
II) Issuance of Look out notice to be processed.
III) To make post-sanction inspection on appointment basis.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue record.
Periodic Encumbrance Certificate to be obtained.

Ans: Only I and III

22. What is incorrect as per Whistle Blower Policy of the Bank

Ans: Whistle Blowers are investigators or finders of facts

23. According to Bank’s guidelines on fraud prevention in WHR which of the following statement
is/are incorrect :
I) Warehouse/ Godowns to be visited and stocks to be verified periodically. II) Financing of
 stocks held in borrowers godowns may be permitted.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX.
IV) It is to be ensured that underlying stocks are segregated/ properly tagged with Bank’s
name.

Ans: Only II

24. Bank’s guidelines are in place for fraud prevention and mitigation measures in SME loans.
which of the following statement is/are incorrect in respect of frauds owing to overvaluation
of collateral and diversion of fund :
I) Value of the property offered as security to be independently verified by the Bank official
and to be duly recorded.
II) Due diligence on the supplier to be done and opinion report to be obtained. Funds to be
disbursed directly to borrower.
III) During post disbursement inspection, details of machineries purchased to be verified and
periodic inspection to be done at regular intervals.
IV) Account with other Bank to be closed as and when detected.

Ans: Only II and III

25. Any employee (officer / award) willing to disclose information under Whistle Blower Policy,
may do so in which of the following manner?

Ans: All of these

26. According to Bank’s guidelines on fraud prevention in WHR which of the following statement
is/are correct :
I) Warehouse/ Godowns to be visited and stocks to be verified periodically. II) It is to be
ensured that underlying stocks are segregated/ properly tagged with Bank’s name.
III) Market Price advised by Collateral Manager to be cross-checked with local Mandi/ MCX.
IV) Financing of stocks held in borrowers godowns may be permitted.

Ans: Only I, II and III

27. According to Bank’s guidelines on fraud prevention in term loan, which of the following
statement is/are incorrect :
I) Disbursement to be made to the account of supplier
II) Immediate inspection after purchase of machinery to be done to ensure proper utilization
of funds.
III) Physical progress / status of project to be monitored on an ongoing basis
IV) Certificate from Chartered account and Architect to be submitted by the company on
annual basis for progress of construction of the said project in respect of amount incurred
on the project.

Ans: Only IV

28. Which among the following is/are among roles and responsibilities of Designated Authority
under Whistle Blower Policy :
 I) The Designated Authority will be responsible to implement the Policy and ensure that the
Policy is known to all employees
II) Appoint/authorise any official to conduct an investigation under this Policy and submit
the report to Designated Authority.
III) Ensure that the identity of Whistle Blower is not disclosed. It also provides necessary
safeguard and protection to the employees who disclose the instances of unethical
practices/ behaviour observed in the Bank.
IV) The Designated Officer shall submit consolidated status report of the bank, to the Audit
committee of the Board (ACB) on quarterly basis, with Action Taken Report

Ans: Only I, II and III

29. As a part of pre-sanction Survey for Home loans and Home Related Loans seven digit
certificate number on form 16 is to be verified form :

Ans: https://contents.tdscpc.gov.in

30. As per confidentiality mechanism of whistle blower, the identity of the whistle blower
remains with the:
Ans: Designated authority

31. Fraud Mitigation Measures include surprise verification of gold loans. What is the stipulated
periodicity for surprise verification in Agri gold loans?
Ans: Quarterly

32. Who is the Designated Official under whistle blower policy of the Bank?
Ans: DGM & CFO for circles / GM (Fraud Monitoring Department) for CC establishments

33. While making payment of Non-Home cheque of ₹5 lakh and above and any suspicious
transactions irrespective of amount involved, if contacting customer is not possible/
successful, what should be the further course of action?
Ans: All of the above

34. Which of the following does not come under the purview of the Whistle Blower Policy
Ans: Complaint with non verifiable contents

35. According to Bank’s guidelines on fraud prevention in collateral security which of the
following statement is/are correct :
I) Obtaining certified copies of title deeds by Advocate and comparison with original title
deeds to be ensured.
II) Noting of charge with revenue authority on mortgaged property to be ensured within
one year of EM creation.
III) To make post-sanction inspection on appointment basis.
IV) Charge on Collateral securities (mortgaged properties) to be recorded in revenue
record. Periodic Encumbrance Certificate to be obtained.
Ans: Only I and IV
36. According to Bank’s guidelines on fraud prevention in term loan, which of the following
statement is/are correct :
I) Disbursement to be made to the account of borrower
II) Immediate inspection after purchase of machinery to be done to ensure proper
utilization of funds.
III) Transaction with related party to be allowed without restrictions
IV) Post sanction inspection to be done at periodic interval to ensure end use of funds
Ans: Only II and IV

37. As a part of pre-sanction Survey for Home loans and Home Related Loans TIN of borrower
is to be verified form :
Ans: https://www.tinxsys.com

38. As a part of pre-sanction Survey for Home loans and Home Related Loans TDS of borrower
is to be verified form :
Ans: https://incometaxindiaefiling.gov.in

39. According to Bank’s guidelines on fraud prevention in Forex, which of the following
statement is/are correct :
I) Goods meant for export to be segregated from stocks meant for domestic sale.
II) Cheque facility is to be provided for EPC account
III) Export Packing Credit (EPC) to be released on request.
IV) Credit officials handling forex/ EPC to be given adequate training.
Ans: Only I and IV

40. Preventive Vigilance Committee (PVC) is one of the tools for exercising preventive
vigilance. Which of the following statement is/are correct :
I) The Preventive Vigilance Committee is neither a ‘power centre’ nor the sole means for
exercising preventive vigilance.
II) It is akin to the ‘Knowledge Circle’, aimed at prevention of loss and enhancement of
performance
III)The meetings of PVCs be held at least once in 6 months.
IV) The PVC submits status report and Action Taken Report to the Audit Committee of the
Board on annual basis.
Ans: Only I and II