MCQ ON CONCURRENT AUDIT OF BANKS

• Duplicate keys of Cash Safe and Strong Room are generally kept with –
(i) Branch in charge (ii) In custody of Joint Custodians (iii) Any nearby branch 
a. (i)
b. (ii)
c. (i) or (ii)
d. (iii)
• Verification of cash by Auditors, should involve –
(i) An element of surprise, (ii) Signing in the Cash Book (iii) Checking for Soiled / Mutilated Notes (iv) Checking the
cash-in-hand with that as per Cash Book / GL.
 (i) & (iii)
a. (i), (iii) & (iv)
b. (i)
c. All of the above
• In case of counterfeit currency, what procedure bank is supposed to follow –
i) Return the currency notes to the customer
ii) Destroy the currency notes
 a) i)
b) ii)
c) None of the above
d) Any one of the above
• Cash Movement’ register contains details of which the following -
 a) Movement of Cash between the Cash Safe and the Teller
b) Movement of Cash between the Chest and the branch
c) Movement of Cash between the branch and the Customer
d) Movement of Cash between the Chest and the RBI
• Clean Note Policy” does not cover which of the following –
a) To use bands instead of staple pins
b) To tender soiled notes to the Reserve bank
c) Customers should stop writing of any kind on watermark window of bank notes.
d) To provide exchange facility to members of public all over the country
• Surprise physical verification of cash-in-hand shall be undertaken by –
a) Joint Custodians of Cash
b) An independent officer from the branch
c) Joint Custodians of Cash and an independent officer from the branch
d) Anyone of (a), (b), (c)
• In case of counterfeit currency, FIR is required to filed in case of detection of
a) 1 or more piece in a single transaction
b) 3 or more piece in a single transaction
c) 4 or more piece in a single transaction
d) 5 or more piece in a single transaction
• Counterfeit currency is required to preserved for a period of
a) 2 years
b) 3 years
c) 4 years
d) 5 years
• Credit to FCRA Account can only be by way of
  a. INR Amount received from Resident Indian
b. Amount received from Foreign Source whether in INR or Foreign Currency
c. Foreign Currency Amount received from Resident Indian
 d. Any amount from any source approved by Head Office of Bank
• A nominee can be
a) An individual
b) HUF
c) Firm
d) All of above
• In case of faulty ATM transaction, the customer is to be reimbursed within
a) 3 days of complaint
b) 5 days of complaint
c) 7 days of complaint
d) 10 days of complaint
• A joint account can be opened by maximum
a) 2 persons
b) 3 persons
c) 4 persons
d) No limit
• Current deposits are not entitled to
a) Cheque books
b) Statements
c) Customer service
d) Interest
• FCNR (B) can be kept in form of
a) Term deposits
b) Current deposits
c) Savings deposits
d) Recurring deposits
• Accounts can be opened jointly with Indian resident in case of
a) FCNR (B) accounts
b) NRE accounts
c) NRO accounts
d) None of above
A minor who wants to make a nomination in favour of his sister is
a) Allowed to nominate
b) Not allowed to nominate
c) Allowed to nominate with the consent of his mother
d) No restriction
Signature on the nomination form are to be witnessed by :
a) One witness
b) Two witness
c) Not required
d) As per the requirement of bank
EEFC account can be opened by
a) An individual resident in India
b) An Indian Company
c) An NRI
d) (a) and (b)
RFC account can be opened in form of
a) Savings account (with cheque book facility)
b) Current account (without cheque book facility)
c) Term deposits
 d) (b) and ( c )
Loan against balance in RFC can be allowed upto :
a) Rs 1 lac
b) Rs 10 lacs
c) Rs 100 lacs
d) Not allowed
Banks are not allowed to open foreign students account without RBI approval in case of :
a) Bangladesh Nationals
b) Pakistan Nationals
c) Bhutan National
d) (a) and (b)
Proof of local address is to be submitted by the foreign student within_______ days of opening the account :
a) 10 days
b) 30 days
c) 40 days
d) 60 days
In case of opening of a new Basic Savings Bank account, any other existing savings bank account of the customer
with the same bank is required to be closed:
a) Within 7 days from the opening of Basic Savings Bank account
b) Within 15 days from the opening of Basic Savings Bank account
c) Within 30 days from the opening of Basic Savings Bank account
d) Not required to be closed.
 Interest in Savings Bank Account Balance is computed on
 a. Balance as on the last date of Month
b. Minimum Balance in the last week of the month
c. Daily closing Balance
d. Minimum Balance between 10th Day and Last Day of the month
 Customer Acceptance Policy; Customer Identification Procedures; Monitoring of Transactions; and Risk
Management are the elements of _____

a. The Bankers Book Evidence Act, 1891

b. Know Your Customer
c. Banking Norms
d. None of the above
 A note with names written thereon will fetch :
a) Full value
b) Half value
c) Nil value
d) Depending upon Bank where it is deposited
 STR (Suspicious Transaction report ) is submitted by the Banks to
a) Police
b) CBI
c) RBI
d) FIU
 In case of high risk customers, updation of KYC is required in
a) 2 years
b) 8 years
c) 10 years
d) 15 years
• For partial freezing of accounts, the period of notice by bank to the customer is
 a) 1 month
b) 3 months
c) 6 months
d) 9 months
• Partial freezing involves freezing of :
a) Debit transactions in the account
b) Credit transactions in the account
c) Both transactions in the account
d) Operations are allowed
• Unclaimed deposits are required to be transferred to DEAF where the unclaimed deposits are
a) Older than 5 years
b) Older than 10 years
c) Older for 10 years or more
d) Older for 15 years or more
FCNR (B) account is not permitted to be opened in the following foreign currency :
a) Australian Dollar
b) US Dollar
c) Singapore Dollar
d) Japanese Yen
Which of the following customer does not fall under low risk category as per the KYC guidelines :
a) Salaried employees
b) Government departments
c) Government organizations
d) NGO
• Total credit during one year in a small account should not be
a) Rs. 50000/- or more
b) Rs 100000/- or more
c) More than Rs 100000/-
d) More than Rs. 500000/-
A minor can operate his/her account on attaining the age of
a) 10 years
b) 12 years
c) 18 years
d) Not allowed to operate
• The balance in small account should not at any time during the year be
a) Rs 25000/- or more
b) Rs 50000/- or more
c) More than Rs. 50000/-
d) More than Rs 100000/-
• The following is not allowed to be credited to a small account
a) Sale proceeds of shares
b) Business receipts
c) Foreign remittance
d) All of above
• Banks should preserve details of suspicious transactions for  
a) A period of 2 years from the date of transaction
b) A period of 3 years from the date of transaction
c) A period of 5 years from the date of transaction
d) A period of 10 years from the date of transaction
• Which of the following is correct 
a) CTR is to be filed within 15 days from the date of transaction
b) STR is to be filed within 7 days of the transaction
c) STR is to be filed within 7 days of the reaching to the conclusion that it is a suspicious transaction
d) All of above
• What is bank supposed to do in case of having some suspicion about an account
a) Should stop all the transactions
b) Permit only debit transactions
c) Permit only credit transaction
d) File an STR while continuing the transactions
Unclaimed deposits mean a deposit which has not been operated for
a) 3 years
b) 5 years
c) 7 years
d) 10 years
• Two parallel lines across the cheque is called
a) Endorsement
b) Transfer
c) Assignment
d) Crossing
• A banker on whom a cheque is drawn by a customer is
a) Collecting banker
b) Paying banker
c) Advising banker
d) Confirming banker
• A cheque is drawn on
a) Principal officer of a company
b) Agent of principal
c) Bank
d) None of above
• A Cheque is payable on
a) Demand
b) After certain days
c) On a fixed date
d) None of above
• The crossing on a cheque can be cancelled by
a) Drawer
b) Endorser
c) Acceptor
d) Drawee
• When a bank pays a cheque in good faith and without having any reason to doubt the bonafides of the
presenter, such payment is called as
a) Wrong payment
b) Late payment
c) Future payment
d) Payment in due course
• Validity period of a cheque is :
a) 3 months
b) 4 months
c) 5 months
d) 6 months
In a cheque where the amount is words is Rs. One lac while the amount in figures is Rs. 100, the bank is required to :
a) Return the cheque as amount in word and figure differ
b) Pay the amount written in words
c) Pay the amount written in figures
d) Pay Rs 100, the lower amount
• Courtesy amount in a cheque stands for :
a) Amount in figures
b) Amount in words
c) Lower of figures and words
d) None of above
• The Account payee crossing is defined U/s
a) 13 of the NI Act
b) 130 of the NI Act
c) 130 of the RBI Act
d) None of the above
• A cheque presented for payment is written in English but the name of the payee is written in Hindi. The
Bank is required to
a) Return the cheque
b) Payee should be advised to get it authenticated from the drawer
c) Pay the cheque
d) Pay the cheque if name of payee is authenticated by the drawer
• X gives a cheque of Rs.7500 to Y . The balance in the account was Rs. 7000 disclosed by the staff of Bank to
Y. Y deposited Rs. 500 in the account of X and got the cheque passed. As such :
a) This a payment in due course and X has no legal remedies
b) X can not ask for refund
c) X can ask for refund as account information was illegally disclosed to Y
d) Bank is not liable
• An account is opened on 1st January 2017. The customer has issued a cheque on 10th January 2017 which is
dated 15th December 2016. On presentation , the bank will
a) Pay the cheque
b) Return the cheque
c) Contact the account holder
d) None of the above
• As per RBI guidelines, all cheques above Rs…….are required to be examined under Ultra Violet Lamp :
a) Rs 10000
b) Rs 100000
c) Rs 200000
d) Rs 500000
• A cheque returning memo is attached with the returned cheque to comply with the provisions of
a) The Negotiable Instruments Act
b) Banking Regulation Ac
c) RBI Act
d) RBI clearing house rules
• Bank has to return a dishonoured cheque within
a) 24 hours
b) 36 hours
c) 48 hours
d) Immediately
• TDS is applicable on interest on deposit in
a) FCNR account
b) NRE account
c) NRO account
d) All of above
• In case of safe deposit locker, the relationship between bank and customer is
a) Agent, Principal
b) Lessor, Lessee
c) Creditor, Debtor
d) None of above
• A cheque is received for payment with amount mentioned only in words. The banker would:
a) honour the cheque for the amount in words
b) Return the cheque to drawer
c) return the cheque with reasons “ words and figure differs”
d) none of the above
• The Banking Ombudsman may ask the concerned Bank to submit :
a) Information on the complaint
b) Evidence in support to the reply of the complainant
c) Other related documents
d) All of above
• The features of award by Banking ombudsman are :
a) It is binding on the bank
b) It is not binding on the complainant unless he accepts it
c) The complainant is free to seek alternative legal remedies
d) All of the above
• Who can make complaint to ombudsman
a) The customer himself
b) The authorized representative of the customer
c) (a) or (b) above
d) None of above
• The maximum limit of compensation the Banking ombudsman may award is Rs. :
a) 1 lac
b) 5 lac
c) 10 lac
d) No limit
• Legal amount of a cheque stands for amount in
a) Words
b) Figures
c) Word or figure which ever is higher
d) None of above
• A customer will not be issued a cheque book in case of return of cheques for insufficient funds during a
financial year if amount of cheque and number of times cheques returned are :
a) Rs 50 lacs and more and 4 times
b) Rs 100 lacs and more and 4 times
c) Rs 500 lacs and more and 2 times
d) No such limit
• In case of surrender of locker, :
a) The same can not be realloted
b) It can be allotted after 1 year
c) It can be allotted after interchanging its lock with any other vacant locker
d) It can be immediately realloted
• A locker can be opened with the
 a) Customer key
b) Manufacturers Key
c) Master key of the Bank
d) a and c
• Foreign contribution under FCRA Act from foreign source includes :
a) Indian Currency
b) Foreign Currency
c) Both ( a) and ( b)
• Foreign currency for travel is not available for travel to
a) Bangladesh
b) Nepal
c) Bhutan
d) B and C
• Banks can accept cash for Foreign exchange upto Rs
a) 10000
b) 25000
c) 50000
d) 100000
• The following is not barred from accepting foreign contribution :
a) Judge
b) Political party
c) NGO
d) Cartoonist
• Remittance under LRS is not permitted for remittance to following country :
a) Bhutan
b) Pakistan
c) Mauritius
d) All of above
• In case of travel to Russia, the maximum permissible foreign currency is USD
a) 3000
b) 5000
c) 10000
d) No limit
• Under Liberalized remittance scheme (LRS) , the maximum permissible foreign remittance per year is :
a) 75000 USD
b) 125000 USD
c) 250000 USD
d) 500000 USD
 
• PAN is required where cash deposit in account during a day is
a) Rs 50000 or more
b) More than Rs 50000
c) Rs 100000 or more
d) More than Rs 100000
• EEFC account can be opened in form of
a) Savings Account
b) Current Account
c) Term Deposits
d) All of above
• Which of the following is true in case of operation in a Basic Savings Bank account :
 a) There is no restriction in number of deposits and withdrawal during a month
b) Maximum 4 deposits can be made during a month
c) Maximum 4 withdrawals can be made during a month
d) Maximum 4 deposits and 4 withdrawals can be made during a month
• Finacle, FlexCube, BaNCS are names of
 a) Operating System
b) Core Banking System
c) Antivirus Software
d) Utility Software
• What is nomination
a. It is a process of appointing legal heir by the depositor
b. It is a part of will of Depositor
c. It confers right to the nominee to receive payment of a deposit after death of depositors
d. A facility extended by Govt.
• As per RBI’s Master Circular on Remittance Facilities to Resident Individuals, remittances under Liberalized
Remittance Scheme of USD 2,50,000 it is mandatory to obtain
 a. Permanent Account Number
b. Form 15H / 15G
c. Form 60
d. All of the above
• Limit for reporting the cash shortage detected by the Auditors as fraud is more than Rs.
a) 1000/-
b) 5000/-
c) 10000/-
d) None of above as cash shortage is not considered as fraud
• What is the minimum amount of remittance through RTGS :
a) Rs 50000/-
b) Rs 100000/-
c) Rs 200000/-
d) Rs 500000/-
• The maximum amount of issue of demand draft against acceptance of cash is Rs :
a) 19999/-
b) 20000/-
c) 49999/-
d) 50000/-
• An FDR with either or survivor clause , is jointly in the name of a father, mother and son . The same
is required to be prematurely closed. In such a case, signature of following is required :
a) Father only
b) Father and son
c) Father, mother and son
d) Any one can sign
• The banks are required to file which of the following return with RBI on detection of fraud or suspected
fraud :
a) FMR-1
b) FMR-2
c) FMR-3
d) Any of above
• The cut off limit for reporting to CBI in case of fraud is :
a) Rs. 1 crore and above
b) Rs 2 crore and above
c) Rs 3 crore and above
d) Rs 5 crore and above
• The cut off limit for reporting frauds to Banking security and Fraud Cell of RBI is :
a) Rs 1 crore and above
b) Rs 5 crore and above
c) Rs 10 crore and above
d) Rs 25 crore and above
• A note with few slogans written there on is considered :
a) Soiled note
b) Brittle note
c) Mutilated note
d) Illegal note
• As per RBI guidelines, demand drafts can be paid in cash if amount of DD is :
a) Upto Rs 19999/-
b) Upto Rs 20000/-
c) Upto Rs 49999/-
d) Upto Rs 50000/-
• In case of premature withdrawal of FDR, no penalty can be imposed by the bank in case of :
a) FDR amount of Rs. 1 crore and above
b) Jan Dhan account holder
c) Small account holder
d) Deceased claim
• Which one of the following is not eligible to open a Savings Bank account :
a) A company registered under section 8 of the Companies Act 2013
b) A Cooperative Society registered under Cooperative Societies Act
c) A HUF
d) None of above
• Minimum period for which an FDR account can be opened is
a) 7 days
b) 14 days
c) 30 days
d) 1 year