Question

(Maximum 1000 Characters)

Cash Reserve Ratio (CRR) is a direct instrument of RBI’s monetary policy,

1 which is used to (1) Credit Volume/Money circulation (2) Inflation (3)
Lending rate.
Which liability is included for the computation of DTL/NDTL for the purpose
of calculation of CRR and SLR?
2

Statutory Liquidity Ratio (SLR) is decided as a ratio of…

3

Which of the followings are quantitative credit control techniques of RBI ?

4

SCBs are required to maintain minimum CRR balances up to ……..% of

5 the average daily required reserves for a reporting fortnight on all days of
the fortnight with effect from the fortnight beginning September 21, 2013.
Cash Reserve Ratio is prescribed for all SCB under …
6
Statutory Liquidity Ratio is prescribed for all SCB under …
7
Reserve Bank pays interest on the CRR balances maintained by SCBs at
8
the rate of……
In case of default in maintenance of CRR requirement on a daily basis
which is currently 95 per cent of the total CRR requirement, penal interest
9 is being recovered for that day at the rate of ……….% per annum above
the Bank Rate on the amount of short fall .
The maximum and minimum rate for SLR are ……….. and
…………..respectively.
10

In case of default in maintenance of SLR requirement on a daily basis,

11 penal interest is being recovered for that day at the rate of ……….% per
annum above the Bank Rate on the short fall .
The main objectives of SLR are mainly:
1. to regulate the expansion of bank credit
12 2. to augment the investment of the banks in government securities.
3. to ensure solvency of banks.
 Choice1 Choice 2 (Max. Choice 3 (Max.
Choice 4 (Max. 1000
(Max. 1000 1000 1000 ANS
Characters)
Characters) Characters) Characters)
Only 1 1&2 1&3 All 1,2 & 3
B

Paid up capital and Loan taken from Deposit in None of above

reserves RBI Current and
Savings account C

Total assets Total Liability Net Demand None of above

and Time C
Liability(NDTL)
Bank Rate and Statutory Open Market All the above
Cash Reserve Liquidity Ratio Operation D
Ratio(CRR)
0.75 0.9 0.95 1

Section 42(1) of Section 42(2) of Section 24 of BR None of above

RBI Act 1934 BR Act 1949 Act 1949 A
Section 42(1) of Section 42(2) of Section 24 of BR None of above
RBI Act 1934 BR Act 1949 Act 1949 B
0.04 0.03 0.02 No interest is paid
D
0.02 0.03 0.04 0.05
B

40 % & 23% 50% & 23% 40% & 19.5% 50% & 19.5% 40 AND
19.25
PRESE
NT
0.02 0.03 0.04 0.05
B

All 1,2,3 1&2 1 &3 2 &3

A
Right Ans (Numeric)

1
 The main objective of prudential guideline is mitigation of…….
13
Definition of exposure under prudential norms of RBI includes
14 i. Credit exposure ii. Forex exposure iii. Investment exposure

If a company holds 51% or more shareholding in another company, the

15
other company is called….
If a company holds significant shareholding ( 20% or more but less than
16
50%) in another company, the other company is called….
While considering exposure to an entity, Exposure includes. i. Credit
17
Exposure ii. Investment Exposure
Large borrower is defined as a borrower to whom the Bank’s exposure
18
exceeds……. % of the Bank’s capital fund.
As per prudential exposure norms, Exposure Ceiling Limits to a single
19 borrower (other than infrastructure projects) is ……….. % of Bank’s capital
fund.
As per prudential exposure norms, Exposure Ceiling Limits to a group
20 borrower (other than infrastructure projects) is ……….. % of Bank’s capital
fund.
As per prudential exposure norms, Exposure Ceiling Limits to Oil
Companies that have been issued oil bonds (which do not have SLR
21 status) by Govt. of India. (other than infrastructure projects) is ……….. %
of Bank’s capital fund.
As per prudential exposure norms, Exposure Ceiling Limits to a single
22 NBFC (which have no lending to infrastructure projects) is ……….. % of
Bank’s capital fund.
As per prudential exposure norms, Exposure Ceiling Limits to a single
23 NBFC-AFC (which has not lent to infrastructure projects) is ……….. % of
Bank’s capital fund.
As per prudential exposure norms, Exposure Limits to (IFC) Infrastructure
24 Finance Companies (which has not lent to infrastructure projects) is
……….. % of Bank’s capital fund.5
As per prudential exposure norms, what can be Bank’s aggregate
25 exposure to the capital markets….
As per prudential exposure norms, what can be Bank’s exposure to the
26 Factoring Services….
As per prudential exposure norms, what can be Bank’s exposure to Indian
27 Joint Ventures, Wholly owned Subsidiaries abroad and Overseas Step-
down subsidiaries of Indian Corporates.
What is the maximum ceiling on Exposure prescribed by Bank (Excluding
28 facilitiesgranted against specified securities) for individual as borrower
Concentration risk Reputational operational risk Liquidity Risk
Risk
I & ii I & iii ii & iii All I,ii,iii

subsidiary Allied Holding Associate

subsidiary Allied Holding Associate

Only i Only ii Both i & ii None

10 15 20 5

5 10 15 20

10 20 30 40

10 15 25 40

10 15 20 30

10 15 20 25

5 10 15 25

40% of Bank’s Net 40% of Bank’s 20% of Bank’s 20% of Bank’s Capital
worth Capital fund Net worth fund
10% of Bank’s Net 10% of Bank’s 10% of Bank’s 15% of Bank’s Total
worth Capital fund Total advance advance
40% of Bank’s Net 40% of Bank’s 20% of Bank’s 20% of Bank’s Capital
worth Capital fund Net worth fund

10 Crore 25 Crore 40 Crore 50 Crore

1

4
 What is the maximum ceiling on Exposure prescribed by Bank (Excluding
29 renewable energy project, ship breaking & diamond industry) for non
corporate borrower.
What is the substantial exposure limit of Bank to any single borrower.
30
What is the aggregate of substantial exposure limit of Bank to single
31
borrowers.
What is the substantial exposure limit of Bank to any single borrower with
32 additional exposure to infrastructure?
What is the substantial exposure limit of Bank to Oil Companies with oil
33 bonds with non-SLR status?
What is the substantial exposure limit of Bank to any borrower group?
34
What is the substantial exposure limit of Bank to any borrower group with
35 additional exposure to Infra?
What is the aggregate of substantial exposure limit of Bank to single
36
borrowers and borrower groups?
Unsecured exposure is an exposure, where realizable value of the security
37 (Primary plus collateral), ab-initio not more than………….. % of
outstanding exposure
38 RBI implemented the Basel-III recommendations in India, w.e.f
39 Basel III recommendations shall be completely implemented in India by:
Basel III Capital regulations were released by Basel Committee on
40 Banking Supervision (BCBS) during Global Regulatory framework for
more resilient banks and banking system
Basel III capital regulations are based on 3 mutually reinforcing pillar.
These pillars are 1. Minimum capital standards
41 2. Supervisory review of capital adequacy
3. Risk management

Under Basel II the option available to compute capital for credit risk are:-
42

Under Basel III, the options available to compute capital for operational
43 risk are

Under Basel III, the options available to compute capital for market risk are
44 :

Certain specific prescription of Basel II capital adequacy framework will

45
continue to apply along with Basel III (parallel run), till:
50 Crore 75 Crore 100 Crore 150 Crore

5% of capital fund 10% of capital 15% of capital 20% of capital fund

fund fund
500% of capital 100% of capital 400% of capital 300% of capital fund
D
fund fund fund
5% of capital fund 10% of capital 15% of capital 20% of capital fund
fund fund
15% of capital 20% of capital 25% of capital 30% of capital fund
fund fund fund
15% of capital fund 20% of capital 25% of capital 30% of capital fund
fund fund
35% of capital fund 30% of capital 25% of capital 20% of capital fund
fund fund B
500% of capital 1000% of capital 400% of capital 600% of capital fund
fund fund fund
10 15 20 25

01.01.2013 31.03.2013 01.04.2013 30.09.2013

31.03.2020 31.03.2019 31.03.2618 31.03.2017
40513 40603 40878 41244

all the 3 are only 1 and 2 are only 1 and 3 are only 2 and 3 are correct
correct, correct, correct, Under Basel II,

The standardized Risk advance Basic Indicator Approach

approach management measurement
approach approach
standardized risk advance Basic Indicator
approach management measurement, Approach
approach, approach
standardized risk Standard basic indicator approach
approach, management Duration
approach, Approach
31.03.2019 31.03.2018 31.03.2017 31.03.2016
3

1
3
2

3
 A bank in India has to comply with capital adequacy ratio requirements
at :(1) consolidated (group) level after consolidating the assets liabilities of
46 its subsidiaries / joint ventures (2) solo level (3) overseas operations of the
bank under (I) and (2).
In India, the banks are required to maintain a minimum Pillar 1 capital to
47 risk weighted assets ratio (or minimum total capital to risk weighted assets
ratio) of………… a s o n ……………
The banks in India are required to compute Basel III capital ratios in the
48 following manner (1) Common equity Tier I capital ratio (2) Tier I capital
ratio (3) Tier 2 capital ratio (4) Total capital to risk weighted asset ratio
To calculate capital adequacy ratio, the banks are to take into account,
49 which of the following risk:

Which of the following statement regarding the Total regulatory capital

under Basel III is correct?

50

As per Basel III implementation in India, Common Equity Tier 1 capital

51
must be………..% of risk weighted assets on ongoing basis:
As per Basel III implementation in India, minimum Tier 1 capital must be
52
% of risk weighted assets on ongoing basis:
As per Basel III implementation in India, within the minimum Tier 1
53 capital, the additional Tier capital can be:

As per Base lII implementation in India, within total capital of 9% of

risk weighted assets, the Tier 2 capital can be
54

Which of the following statements is not correct regarding Basel III

implementation in India:
55

Which of the following statements is not correct regarding Basel III

implementation in India:
56
1 and 2 only correct 1 and 3 only 2 and 3 only 1 to 3 all correct
correct correct
B

8%, 31' Mar each 9%, 31" Mar 8%, ongoing 9%, ongoing basis.
year each year basis

1to 4 all 1,2 and 4 only 1, 3 and 4 only 1 and 4 only

credit risk and credit risk and market risk and credit risk, market risk
operational risk market risk only operational risk and operational risk
only only
total regulatory Tier I capital is Tier I capital all the above.
capital is sum total called `going- comprises
of Tier I capital and concern' capital common equity
Tier 2 capital and Tier 2 Tier I and
capital is called additional Tier I
'gone-concern'
capital

0.055 0.07 0.09 0.11

0.055 0.07 0.09 0.11

min 5.5% of risk max 5.5% of min 1.5% of RWA max 1.5% of RWA
weighted assets RWA
(RWA)
max equal to Tier I min equal to Tier max equal to 2% min equal to 2% of risk
capital I capital of risk weighted weighted assets
assets

minimum common (CCB) consisting Maximum minimum common equity

equity Tier I ratio of common additional tier 1 Tier I ratio plus capital
should be 5.5% of equity, should be capital should conservation buffer
RWAs 2.5% of RWAs be 1.5% of should be 7%
RWAs,

Maximum Tier I Tier 2 capital minimum total minimum total capital ratio
capital ratio should should be max capital ratio plus capital conservation
be 7% 2% should be 9% buffer should be 11.5%
4

3
 As per Basel III, which of the following is an element of Common Equity
component of Tier I (1) common shares i.e. paid up equity capital (2) stock
57 surplus i.e. share premium (3) statutory reserves (4) capital reserves
representing surplus arising out of sale proceeds of assets (5) balance in
profit and loss account at the end of the previous year.
As per Basel III, which of the following can be included in Additional Tier I
capital (1) Perpetual Noncumulative Preference shares — PNCPS (2)
58 stock surplus or share premium resulting from issue of Additional Tier I
instruments (3) Debit capital instruments eligible to be included in
additional Tier I.
As per Basel III, Tier 2 capital comprises which of the following (1) general
provisions and loss reserves (2) debt capital instruments issued by bank
59 (3) preference share capital instruments with redeemable or cumulative
feature (4) revaluation reserve (5) stock surplus i.e. share premium
resulting from issue of Tier 2 eligible instruments.
As per Basel III, general provisions and loss reserves are included in
Tier-2 capital maximum to the extent of:

60

As per Basel III, the value of revaluation reserve is to be taken --- %

61
discount to include in Tier 2 capital:-
As per Basel III, adjustments / deductions are required to be made
from Tier I and Tier 2 capital, relating to which of the following
62 (1) goodwill and other intangible assets (2) deferred tax assets (3)
Investment in own shares (treasury stock) (4) investment in
capital of banking, financial or insurance entities :

As per Basel III, the investment of a bank in the capital of a banking or

financial or insurance entity is restricted to which of the following:

63
I to 4 only 1 to 5 all 1,4 and 5 only, 1, 2 and 3 only

2 and 3 only 1 and 2 only 1 and 3 only 1 to 3 all

1 to 5 all 1 to 4 only 1, 4 and 5 only 1, 2 and 3 only.

0.6% of total risk 1.25% of total 0.6% of total 1.25% of total credit risk
credit weighted credit risk credit risk weighted assets under
assets under weighted weighted assets standardized approach
standardized assets under under and 1.25% of total risk
approach and 0.6% standardized standardized weighted assets under
of total risk approach and approach and IRB approach.
weighted assets 0.6% of total 1.25% of total risk
under IRB credit risk weighted assets
approach weighted under IRB
assets under approach
IRB approach

0.6 55%, 0.5 0.45

1 to 4 all, 1 and 3 only, 1 only

10% of capital 5% of the 30% of paid up all the above

funds (after investee bank's capital and
deductions) of the equity capital, reserves of the
investing bank, bank or 30%, of
paid up capital of
the company,
whichever is
lower.
 2

#N/A

4
 Piller 3 of the three mutually reinforcing pillars on which Basel II is based
64 is:
Pillar 1 of the three mutually reinforcing pillars on which Basel II is based
65 is:

Pillar 2 of the three mutually reinforcing pillars on which Basel II is based

66 is:
Operational Risk is the risk of losses:

67

The method/s for calculating capital charge for operational risk is/are:
68

RWA stands for

69
70 Basel I addressed only
Exposure at Default is the

71

BCBS stands for;

72

73 Risk resulting from external events is part of :

Supervisory Review Process (SRP) is:

74

BCBS aims at encouraging common approaches and standards, however

75 does not issue binding regulations, which is left to the………………
Supervisory Market Minimum Capital None of the above
Review Process Discipline Requirement
Supervisory Market Minimum Capital None of the above
Review Process Discipline Requirement

Supervisory Market Minimum Capital None of the above

Review Process Discipline Requirement
In on-balance sheet Resulting from Both the above None of the above
and off-balance inadequate or
sheet positions failed internal
arising from processes,
movement of people and
market prices systems or
from external
events

The Standardised Basic Indicator Advanced All the above

approach approach measurement
approach
Risk Weighted Risk Welfare Risk Welfare Risk Weighted Asset
Account Assessment Asset
Credit Risk Market Risk Operational Risk Credit risk & Market risk
Likelihood that a Amount the Loss on a credit None of the above
borrower would borrowers facility that takes
default over a given owns to the place when a
time horizon, bank at the borrower defaults
usually a year time of default

Basel Committee Basel Basel Basel Committee for

for Banking Committee for Committee for Board Supervision
Standard Board Standard Banking
Supervision
Operational Risk Market Risk Credit Risk All of the above
To ensure that bank To encourage Both the above None of the above
have adequate the banks to
capital to support develop and use
all the risk in their better risk
business management
techniques
Individual Banks Individual World Bank IMF
Country
Regulator
2

4
1

3
1

2
 Initially when did G-10 countries form the Basel Committee on Banking
76
Supervision (BCBS).
As per 1988 Basel accord bank assets were classified in which of the
77 following five buckets i.e. grouped under five categories according to credit
risk carrying risk weight (%).
78 As per Basel I, generally Government debt was assigned Risk Weight of:
79 As per Basel I, Bank debt was assigned Risk Weight of:
As per Basel I, Tier I or Core Capital includes:
80
When was the amendment to the 1988 Basel accord was made to provide
81
an explicit cushion for the market risk to which banks are exposed?
Capital requirement under Basel II accord does not include which of the
82
following risk?
Strategic and business risks are included in which of the followings?
83

Capital requirement under Basel II accord include which of the following

84
risk?
Which of the following is prescribed under Supervisory Review Process in
Pillar II of Basel II?
85

Basel –I accord and the 1996 amendment thereto has defined capital
requirement as:
86

Which was the immediate cause which prompted G-10 countries to form
87 the Basel Committee on Banking Supervision(BCBS).
The risk weights for which of the followings are differentiated based on
88
external credit assessment under Standardised approach for Credit risk.
The exposure to retail and SME sector attracts a uniform risk weight of
89 ………% irrespective of the individual risk rating of the component
exposure.
Which of the following is Credit risk mitigant that can be used by banks
under Standardised approach for capital reduction?
90

Capital charge computation is a function of which of the following

parameters under IRB approach?
91
 1974 1975 1988 1996

0,25,50,75 and 100 5,10,20,30 and 0,10,20,50 and 5,25,50,75 and 100
100 100

0.5 0.2 0.1

0.5 0.2 0.1
Capital Disclosed a only Both a & b
Reserve
1995 1996 1997 2004

Operational risk Market Risk Liquidity risk None of the above

Market Risk Supervisory Market Discipline None of the above

Review
Process
Operational risk Market Risk Credit risk All of the above

Risk assessment Ensure minimum Prescribe All of the above

capital with PCA differential
for shortfall capital, where
necessary
Capital = Capital Capital = Capital Capital = Capital None of the above
Ratio (8%) x Ratio (5%) x Ratio (9%) x
(Credit Risk+ (Credit Risk+ (Credit Risk+
Market Risk) Market Risk) Market Risk)

Baring Bank Herstatt Deregulation & None of the above

debacle Incident Globalisation
Sovereign Inter-bank Corporate All of the above

50 75 100 None of the above

Collateral and risk Gurantees and Collateral, Credit derivatives only

aversions risk identification Guarantees,
credit
derivatives
Probability of Exposure at Maturity All the above
Default Default (EAD)
&Loss Given
Default(LGD)
1

3
4
2

4
 Credit risk arises in bank in which of the following type of lending (a)
92
Fund- based facilities (b) Non-fund based facilities (c) Treasury products
How many principles have been laid down by “Sound Practices for the
93
Management of Operational Risk”
In the Standardised approach for operational risk, bank’s activities are
94
divided in how many business lines?
Which of the following business line is in bank’s activities in the
95
Standardized approach ?
Bank using the Basic indicator approach must hold capital for operational
risk:

96

Which of the following is a domestic external credit rating agency

97 (approved by RBI) for the purpose of CRAR under Basel III
implementation in India
. ……… Days Liquidity Coverage Ratio (LCR) is intended to promote
98
short term resilience to potential liquidity disruption.
99 What is the Capital Conservation Buffer under Basel III?
100 Under Basel guideline the weighing factor for cash asset is……
Which one of the following is not a feature of Basel III
101

1.    Who does not have a direct role in FDI

102

Who is an authorised Person to deal in Foreign Exchange:

103
Which is not correct about Depository Receipt

104

Which is correct about Foreign Currency Convertible Bonds:

105
a & b only a & c only b & c only a, b, c all

5 10 15 17

5 8 10 12

Payment and Asset Retail Brokerage All the above

Settlement Management
Equal to the Equal to the Equal to the None of the above
average over the average over the average over the
previous three previous two previous three
years a fixed years a fixed years a fixed
percentage (15%) 20% annual percentage (10%)
of positive annual gross income of positive annual
gross income gross income

Fitch Moody’s Standard & Infomerics

Poor’s

50 60 30 90

0.025 0.015 0 to 2% 0.035

0.05 0.1 1
Better capital Capital Better customer Countercyclical buffer
quality conservation service
buffer
Department of Ministry of RBI Ministry of External
Industrial Policy Commerce and Affairs
and Industry
Promotion(DIPP)
Authorised Dealer Money Changer Off shore banking All the above
unit
It is a negotiable It is issued by a It represents None of these.
security issued Depository Bank Local rupee
outside India on behalf of an denominated
Indian Company equity shares of
the company
It is a bond issued ) the principal It can be All the above
by an Indian and interest of subscribed by a
Company which is payable non resident
expressed in in foreign entity.
foreign currency currency
4

3
1
1

4
 Who can not invest under automatic route in India
106
107 Foreign Direct Investment is not prohibited in which sectors
An Indian Company receiving investment from outside India should report
108 the details to RBI not later than

109 FDI is a …………….transaction

Who enforces FEMA
110
For remittance proceeds on winding up/liquidation of companies which is
required:

111

Which can not be an Investment Vehicle?

112

Which is correct about Foreign Institutional Investor:

113

Which is correct:

114

Who regulates exports trade in India ?

115
UCPDC stands for?

116
an NRI a citizen of OCBs Citizens of Nepal and
Bangladesh Bhutan
Gambling Nidhi Company Textile Atomic Energy
60 days from the 30 days from 15 days from the None
date of receipt the date of date of receipt
receipt
Capital account Current Account Revenue account None of these
RBI Directorate of SEBI None
enforcement
Tax clearance Auditors Auditors All the above
certificate from confirmation that certificate to the
Income Tax all liabilities in effect that the
department India have been winding up is in
fully paid or accordance with
adequately the provisions of
provided for the Companies
act as applicable

Real Estate Infrastructure Alternative None of these

Investment Trusts Investment Investment Funds
(REIT) Trusts (InvIts) (AIF)
an entity It proposes to It has to register All the above
established or make investment itself as a FII in
Incorporated in India accordance with
outsisde India SEBI (Foreign
Institutional
Investor)
Regulations
1995.

Annual Return on The above The above return All the above
Foreign Liabilities return is to be is to be filed with
and Assets submitted by RBI
(section-3) should 15th of July
be filed on annual every year.
basis.
RBI AD category I DGFT None of these
banks
Universal Customs Uniform Uniform Circular None of these
and Practices for Customs and and Procedure for
Documentary Practices for Documentary
Credits Documentary credits
Credits
2
3

2
1

2
 What is the time limit for getting proceeds against Exports
117

Who can open a Diamond dollar Account

118

Which of these is not correct regarding EEFC account?

119

A person resident in India while going out of India , may take out of India
120 (other than from Nepal and Bhutan), the maximum amount of INR
currency notes
Which statement about third party payment forExport transactions are not
correct

121

In cases where an advance payment is received against exports, shipment

122 of goods has to be made within what time from the date of receipt of
advance?
Not later than 9 Not later than Not later than 6 There is no time limit
months from the 12 months from months from the
date of Export the date of date of Export
Export
Firm and Firm and Both above None of these.
Companies Companies
dealing in dealing in
diamond with a diamond with a
track record of 2 track record of 3
years of export years of export
and import of and import of
diamond and an diamond and an
average annual average annual
turn over 3 crores turn over 2crores
during the during the
preceding 3 preceding 3
licensing years. licensing years.

It is a non interest Credit facility Credit facility can None of these

bearing account can be granted not be granted in
in this account this account
Maximum 50000 Maximum Maximum 10000 Maximum 25000
100000

Firm irrevocable AD bank The Invoice None of these

purchase order should be should contain a
backed tripartite satisfied with narration that the
agreement should the bonafides related payment
be in place. of the has to be made to
transactions the (named) third
and should party. Exporter
consider the should declare
Financial Action this in,.Export
Task Force Declaration form.
(FATF)
Statement
before handling
the transactions

6 months 1 year 2 year None

1

2
 Up to what period extension to realize proceeds can be grantedat a time
123
by AD category I bank::
Exports are governed by following guidelines

124

EDPMS stands for :

125

An exporter may write off maximum up to

126

The facility of Export collection through Online Payment Gateway Service

127
Providers(OPGSPs )is allowed up to what amount
Which is not a Permitted debits in the OPGSP export Collection account:
128

India’s Trade with which ACU member country is settled outside ACU
129
mechanism
It is obligatory on the part of the exporter to realize and repatriate the full
value of goods /software / services to India within a stipulated period from
130 the date of export. This period is
1 year 2 year 6 months None

Foregn Trade FEMA Act 1999 Foreign All the above

Policy Exchange
Management
(Current Account
Transfer) Rules
2000
Export Data Export Delivery Export Impoert Export Delivery
Processing Payment Data Payment Processing Management
Monitoring Management Management System
System System System
5% of total exports 10% of total 15% of total None
proceeds realized exports exports proceeds
during previous proceeds realized during
calendar year realized during previous calendar
previous year
calendar year

USD 20000 USD 10000 USD 40000 USD 50000

Repatriation to Charge back to Payment for Payment of commission

exporters accounts importers for overhead to OPGSPs
returns and expenses of
refunds exporter.
Pakistan Bangladesh Iran Shri lanka.

6 months b) 9 months c) 12 months 9 months for all exports

except export to a ware
house outside India
3

4
 Which statement regarding ACU is not correct?

131

Which is not correct regarding Export declaration form?

132

If, after a bill has been negotiated or sent for collection, its amount is to be
reduced for any reason, AD Category – I banks may approve such
reduction, if satisfied about genuineness of the request, provided:
133

Balances in Nostro accounts opened by AD I category banks for collection

134 of proceeds of transactions done through OPGSPs should be should be
repatriated within:
The Asian AD Category – I All eligible Relaxation from ACU
Monetary Unit banks are payments are Mechanism- Indo-
(AMU) shall be allowed to open not required to Myanmar Trade - Trade
denominated as and maintain be settled by the transactions with
‘ACU Dollar’ and ACU Dollar and concerned Myanmar can be settled
‘ACU Euro’ which ACU Euro banks through in any freely convertible
shall be equivalent accounts with these accounts. currency in addition to the
in value to one US their ACU mechanism
Dollar and one correspondent
Euro, respectively. banks in other
participating
countries.

Customs shall Customs shall At the time of Within 30 days from the
certify the value retain the shipment of date of export, exporter
declared and give original EDF for goods, exporters shall lodge the duplicate
running serial transmission to shall submit the copy together with
number on the two the Reserve duplicate copy of relative shipping
copies of Export Bank and return the EDF to documents and an extra
Declaration Form the duplicate Customs. After copy of the invoice to
(EDF), submitted copy to the examining the the AD named in the
by exporter at Non- exporter. goods, Customs EDF.
Electronic Data shall certify the
Interchange (EDI) quantity in the
port form and return it
to the exporter for
submission to AD
for negotiation or
collection of
export bills.

The reduction It does not relate The exporter is The exporter is advised to
does not exceed to export of not on the surrender proportionate
35 per cent of commodities exporters’ caution export incentives availed
invoice value: subject to floor list of the Reserve of, if any.
price stipulations Bank,

10 days 15 days 7 days 2 days.

3

3
 one diamond exporter can have maximum ……….Diamond dollar
135
accounts
Who regulates import trade in India ?
136
What is the time limit for completing remittance against imports
137

138 Import of which item does not attract time limit for effecting remittance
5. How much foreign currency (cash) a person can bring into India without
139 making a declaration to the Custom Authorities
7. Which denomination INR currency note cannot be brought in India from
140
Bhutan and Nepal ?
In the case of a public Sector Company or a Department/ Undertaking of
141 the Government of India/State Governments approval from the Ministry of
Finance, GOI is needed for advance remittance exceeding
Up to what period interest on usance bills or overdue payments of imports
142 can be paid :

In respect of imports on delivery against acceptance basis, how much time

143 from the date of remittance can be allowed to an importer to submit
evidence of import:
IDPMS stands for :
144

In case of Import of Platinum/Palladium/Polished diamonds etc, the

145
maximum period allowed under clean suppliers/Buyers credit
The entire Merchanting Trade transactions should be completed within an
146
overall period of:
The facility of Payment through Online Payment Gateway Service
147
Providers(OPGSPs)is allowed up to what amount:
Which of the following condition should be met for a trade to be treated as
“Merchanting Trade”:

148
 2 3 4 5

RBI AD category I DGFT. None of these

banks
Not later than 9 Not later than Not later than 6 There is no time limit
months from the 12 months from months from the
date of shipment the date of date of shipment
shipment
aServices Books Gold Petroleum products
USD 10000 or its USD 3000 or its USD 5000 or its d) USD 15000 or its
equivalent equivalent equivalent equivalent
50 20 500 100

USD 200000 USD 500000 USD 100000 USD 1000000

1 year from the 2 year from the 3 years from the None
date of shipment date of shipment date of shipment

6 months 3 months 1 month 2 month.

Import Data Import Delivery Import Data Import Delivery

Processing Payment Payment Processing Management
Management Management Management System
System System System
90 days 180 days 270 days 360 days

9 months 12 months 6 months 3 months

USD 1000 USD 2000 USD 4000 USD 5000.

The state of goods Goods Both the legs of a None of these

should undergo acquired Merchanting
transformation should not Trade should not
enter the be routed through
Domestic Tariff the same AD
Area Bank.
4

3
2

2
 Which is not a Permitted debits in the OPGSP Import Collection account
149

Facility of transit trade whereby goods are imported from third countries
150 through India under the cover of Customs Transit Declarations is available
to:
Which of the following cannot be accepted as proof of import?
151

Head Offices / International Banking Divisions of AD Category - I banks

152 are required to submit the half yearly and monthly statements relating to
‘Import of Gold’ under XBRL system
While granting extension of time for settlement of imports, which of the
following need not be insured:

153

Up to what amount, advance remittance for Import of Aircrafts/Helicopters

154 and other Aviation Related Purchases can be made without bank
guarantee
Deferred payment arrangements (including suppliers and Buyers credit)
155
up to how much time are considered as trade credits:
When a AD Category I bank receives document directly from overseas
156 supplier, up to which amount it is not mandatory to obtain a report on
overseas supplier from overseas banker or a reputed credit agency:
Payment to Payment to Bank Charges. Overhead charges of
overseas exporters Indian importers OPGSPs
in permitted foreign for returns and
currency refunds
Nepal Bhutan Bangladesh both a) and b)

Custom Postal Appraisal Exchange Contril Acknowledgement of

Assessment Form Copy of the Ex- payment from the buyer.
Certificate Bond Bill of Entry
by the 10th of the by the 15th of by the 7th of the by the 30th of the
following the following following following month/half year
month/half year month/half year month/half year
The import In case of In case of None of these.
transaction covered extension extension
by invoice is not beyond one year beyond one year
under investigation from the date of from the date of
remittance, total remittance, total
outstanding of outstanding of
the importer the importer
does not exceed does not exceed
USD one million USD one million
or 10% of the or 15% of the
average import average import
remittances remittances
during the during the
preceding two preceding two
financial years, financial years,
whichever is whichever is
lower. lower.

USD 10 mio USD 20 mio USD 50 mio USD 40 mio

1 Year 3 Year 5 Year None of these

USD 100000 USD 200000 USD 300000 USD 500000

4

3
 Which is Permitted credits in the OPGSP import collection account.:

157

What is the all-in-cost ceiling for ECBs over the benchmark rate ?
158
What is the maximum prescribed ratio of ECB liability to Equity for ECB
159
raised from direct foreign equity holder?
The prescribed All-in-cost does not include :
160
LRN stands for:
161

162 Who issues LRN?

163 What is the minimum average maturity period for INR denominated ECB?
164 In Which form , ECB can not be raised under automatic route?
Which entities are not permitted to raise ECB under Track I?
165

ECB can be raised in

166

What are the hedging requirement for raising ECB?

167

Who is authorized to permit raising of ECB under approval route?

168
Can an entity under JLF or Corporate Debt Restructuring (CDR) be
permitted to raise ECB.

169

Who is primarily responsible for compliance of guidelines applicable to

170 ECB:
Collection from Charge back Both a) and b) None
Indian importers for from the
Online Purchases overseas
from overseas exporters
exporters
300 basis points 350 basis points 400 basis points 450 basis points

0.2090277778 0.0840277778 0.2923611111 0.2506944444

Rate of interest Commitment Other fees and Guarantee fee

fees expenses
Loan Repayment Loan Loan Regulation Loan Retention Number
Number Registration Number
Number
Authorised dealer DGFT RBI FIPB
3 Years 5 Years 7Years 10 Years
Bank Loan FCCB FCEB Financial Lease
Manufacturing SIDBI Real Estate d) Shipping and airlines
companies Investment companies
Trusts
Dollar only Euro only Rupee only any freely convertible
foreign currency as well
as INR.
ECB exposure ECB exposure ECB exposure
(principal plus (principal plus (only coupon) ECB exposure (only
coupon) should be coupon) should should be 100% principal ) should be
75% hedged. be 100% hedged 100% hedged
hedged

AD category One RBI DGFT. FIPB

banks
Can not be Can be Can be d. Can be permitted only
permitted permitted with permitted only by Finance Ministry
the consent of with explicit
RBI only permission of
JLF/CDR
Empowered
committee.

RBI Borrower DGFT

AD category One
3

2
3
1
3

3
171 What is the all-in-cost ceiling for raising Trade credits over 6 month LIBOR
Who can raise ECB for working capital finance ?
172
NBFC company can raise rupee denominated ECB for:

173

Frame work for raising loans through ECB comprises;

174
Which of the following are permitted to raise ECB:

175

Which of the following end uses for ECB proceeds is permitted

176
177 Which of the forms of borrowing is not permitted under automatic route:
What is the individual limits of ECBs that can be raised by Companies in
178
software development sector :
Which is not correct in relation to ECBs:

179

Which is not correct in relation to Rupee denominated bonds overseas:

180
 300 bps 350 bps 250 bps No cap prescribed
Manufacturing Airline Real estate None
company company company
On lending for any providing providing capital All the above.
activities hypothecated goods to
loans to domestic entities
domestic entities by way of lease
for acquisition of and hire-
capital goods purchases.

Tracks I and II Tracks I,II and Tracks II and III None

III
Housing finance Port Trust None of these both a) and b)
companies Companies
regulated by NHB under the Major
Port trust Act
1963
Investment in Equity Repayment of None of these.
Capital Market. Investment Rupee loans
Suppliers credit financial Lease FCCBs FCEBs
USD 750 mio USD 200 mio USD 500 mio None of these.

AD category I AD category I AD category I Changes in the name of

banks may approve banks may bank can be the borrowing company
changes/modificati approve changed subject can not be permitted.
on in the draw- changes/modific to no objection
down and ation in the from the existing
repayment currency of AD Category I
schedule. borrowing. bank.

Eligible resident It can be issued The bonds can be Indian Banks can not
entities can issue only in FATF either placed issue Rupee
only plain vanilla compliant privately or listed denominated bonds
Rupee bonds. financial on exchanges as overseas.
Centres. per host country
regulation
2

4
4

4
 Which is not correct in relation to borrowing in foreign currency by persons
other than an authorized dealer:

181

Which is not correct in relation to lending in foreign currency by persons

other than an authorized dealer:

182
 A person resident An importer in An individual None of these.
in India may borrow India may for resident in India
for execution of import of goods may borrow a
projects outside in to India,avail sum not
India and for of foreign exceeding USD
exports subject to currency credit 500000 or its
certain conditions. from overseas equivalent from
supplier. his close
relatives out
side India.

An Indian entity Select Indian None of these.

may lend to its Institutions like companies in
wholly owned EXim India cannot
subsidiary or joint Bank,IDBI,IFCI, grant loans to
venture abroad SIDBI etc may the employees
constituted in extend loans to of their
accordance with their constituents branches
the provisions of in India out of outside India .
FEM( Transfer or foreign currency
issue of foreign borrowings
security ) raised by these
Regulations 2000 institutions with
the approval of
the Central
Government for
the purpose of
onward lending.
3

3
 Which is not a condition to be fulfilled for conversion of ECBs, including
those which are matured but unpaid:

183

Which is not correct relating to refinancing of existing ECB with fresh

ECB ?

184
 The activity of the The conversion, Applicable Consent of other lenders,
borrowing company which should be pricing if any, to the same
is covered under with the lender’s guidelines for borrower is available or
the automatic route consent and shares are not atleast information
for Foreign Direct without any applicable; regarding conversions is
Investment (FDI) or additional cost, exchanged with other
approval from the will not result in lenders of the borrower.
Foreign Investment breach of
Promotion Board applicable sector
(FIPB), wherever cap on the
applicable, for foreign equity
foreign equity holding;
participation has
been obtained as
per the extant FDI
policy;

The fresh ECB is Residual Overseas d. Partial refinance of

raised at a lower maturity is not branches/subsidi existing ECBs is not
all-in-cost. reduced. aries of Indian permitted
banks are
permitted only to
refinance ECBs
of highly rated
(AAA) corporates
as well as
Navratna and
Maharatna PSUs,
provided the
outstanding
maturity of the
original borrowing
is not reduced
and all-in-cost of
fresh ECB is
lower than the
existing ECB.
3

4
 Which statement is not correct about ECBs?

185

Permitted changes in ECB parameters should be reported to RBI within

which period?
186

A borrower can approach for Loan Regisration Number :

187

Regarding end use of funds raised through ECB, there is

188

1. RBOSA stands for________________-

189
190 RBOSA was introduced in internal audit w.e.f.________
3. RFIA is being conducted by___________
191

At RBOSA model data from the source system is obtained at

192
______intervals
5. Branches may be categorized under RBOSA as_______
193
194 _______Branches will be taken up first for audit in terms of priority
The designated AD The designated The designated The designated AD
Category I banks AD Category I AD Category I Category I banks may
may directly banks may banks can not approve requests from
approach DSIM for approve approve ECB borrowers for
cancellation of LRN requests from reduction in the changes
for ECBs ECB borrowers amount of ECB (decrease/increase) in all-
contracted, subject for change in in-cost of the ECBs
to ensuring that no end-use in irrespective of the number
draw down against respect of ECBs of occasions subject to
the said LRN has availed of under the applicable ECB norms
taken place and the the automatic for automatic route.
monthly ECB-2 route, provided
returns till date in the proposed
respect of the end-use is
allotted LRN have permissible
been submitted to under the
DSIM. automatic route
as per the extant
ECB guidelines.

7 days prior permission 10 days None of these

of RBI should be
obtained.

through his AD directly to RBI Directly to None of these

category I Bank Ministry of
Finance
a negative list for There is a There is both None of these
all tracks Positive list of all Positive and
tracks negative list
Rating based off Risk based off Risk based on Rating based on site audit
site audit site audit site audit.
FY2015-16 FY 2016-17 FY 2017-18 FY 2018-19
Internal audit Corporate Respective RBI
department Centre Mumbai LHOs
Hyderabad
Daily Fortnightly Monthly Quarterly

Outlier & Moderate Acceptable Normal Any one of the above

outlier
Normal Acceptable Outlier Moderate outlier
3

2
4

4
3
 Which of the following will be treated as exposure under stress under
195 RBOSA
Deviation of loan account not covered under CGTMSE will be treated as
196
Deviation of CRA rating not done will be treated as :
197
198 How many score is awarded for “Complaints” under RBOSA
199 Data for exceptions will be captured from ________ for RBOSA
.________offsite audit score is assigned based on the percentage of
200
exceptions observed
Average of __________scores between two audit dates will be carried
201
away for integration of onsite RFIA score.
Compliance of exceptions reported in offsite audit application will be
202 required

203 Scores awarded under RBOSA for increase in NPA as >5% to 10% are
Onsite audits will continue to validate compliances of controls ascertained
204
through
Concurrent auditor is now tasked with ______scrutiny of new borrowal
205
accounts from the pre sanction stage to disbursal
Early Sanction of Review scrutiny is done up to _______
206
Early Sanction of Review(small loans) is done where loan amount is grater
207
than ________Rs.
Early Sanction of Review(ESR-large loans) is done where loan amount is
208
greater than ________Rs
Scores will now be awarded under these Core parameters only
209
Deviation in External compliance has now been fixed to acceptable level
210
of _________
Deviation beyond the acceptance level in EC will result in downgrading of
rating to____
211

212 Recurrent income leakage has now been linked to _________

Frauds which involves gross negligence in following system & procedures,
213 abuse of delegated powers ,staff involvements etc are categorized
under_____________
Frauds that have occurred mainly outside the control area of branch are
214
categorized under_____________
Stock statements Renewal due EMI overdue All the above.

Gaps in controls Exposure under Quick Mortality Increase in NPA

stress
Exposure under Quick Mortality Gaps in d. Increase in NPA
stress controls
15 25 50 60
CBS LOS & LLMS CDC reports . All the above
Monthly Quarterly Halfyearly Yearly

Monthly Quarterly Halfyearly None of them

To be sent to RBO To be sent to To be done in To be shown to RFIA

CAO the source auditor
system only
10 25 50 85
RFIA off site audit Self audit None of above.

0.25 0.5 0.75 1

Pre sanction Post sanction Disbursement None of them

stage stage stage
25 lac 30 lac 50 lac 100 lac

Rs.50 lac Rs.100 lac Rs.500 lac Rs.1000 lac

CRM, ORM CRM, ORM, CRM, ORM, EC . Either a or b

FEMA
0.05 0.15 0.25 0.5

C- rating will be Rating will not Penalty will be None of above

assigned in that be affected. imposed for
area of operation higher deviation 1
irrespective of in EC
scores
Value statements OTMS . Audit score None of above. 3
Category I frauds Category II Category III None of the above
frauds frauds 1

Category I frauds Category II Category III Not treated as fraud.

3
frauds frauds
1

3
4
4

3
3

1
3

3
 What will be the impact of Category I fraud to branch audit?

215

Frauds in the realm of digital banking for which the branch cannot be
216
made responsible will categorized under
IAD has now started _________based checking of compliances during the
217
processing of audit reports
ZIOs has been renamed as ____________
218

A negative score of 2 with a minimum of ______& maximum of

219
_________will be awarded for each false compliance
What will be negative score for Zero tolerance Area from the audit cycle of
220 2018-19

221 What is the maximum negative score for recurring income leakage
What are the negative scores for false compliance in OTMS alerts

222

Deviation in valuation reports will be treated as________under RBOSA

223
Deviation in inoperative accounts activation will be treated
224
as________under RBOSA
225 RBOSA will not be applicable to_________
Frauds detected/confirmed prior to review period will have an impact of
_______
226

. “ AAA” rating shows

227
ORM risk rating Negative marks No impact on Either “ a “ or “ b”
will be of 50 will be ORM risk rating
downgraded to awarded may or
“C” along with may not 1
negative score of downgrade the
50 will also be ORM rating
awarded.

Category I frauds Category II Category III None of above

3
frauds frauds
Data Evidence Vouchers None of them
2
Circle Audit Office Inspection & Central Audit None of these
Audit office 1
Department
10 & 20 20 & 30 10 & 50 20 & 50
4
20 25 50 No negative scoring for
ZTAs under new system 4
of audit
10 15 25 None of them 3
10 for each false 05 for each false 02 for each false 10 for each false
compliance with a compliance with compliance with a compliance with a
minimum of 20 & a minimum of 10 minimum of 10 & minimum of 10 &
maximum of 50 & maximum of maximum of 20 maximum of 100 will be
will be awarded 25 will be will be awarded awarded 1
awarded

Exposure at Stress Gaps in Irregularities others

2
Controls
Irregularities Exposure at Gaps in others
3
Stress Controls
MCG branches. TFCPC DAC Both b & c 4
Negative score of Negative score Down grading of No impact on score
25 will be awarded of 50 will be ORM rating except for score/penalty
awarded awarded under 4
reporting monitoring &
follow up.
Scores>=85% in Scores>=80% in Scores>=90% in None of these.
CRM, ORM, CRM, ORM, CRM, ORM, 1
FEMA FEMA FEMA
1

4
3

3
4

1
 . “ AAD” rating shows:

228

44. Integrated score will comprise of _______

229

The Account Information of an individual will be shared with only

230
Bank will pass the information of interest rate to the customer through
231
In case of deceased depositor the bank can open an account in the style
of “ Estate of Sri ____________ , the deceased “ to allow credit of pipeline
funds
232

Policy of Cheque collection includes

233

The objective of BCSBI Code is

234

235 The BCSBI Code will be reviewed with in a period of

The bank should communicate, in writing the reaon(s) of rejection of a
236
loan application if the loan applied exceds
According to BCSBI Codes, Banks can reveal the information or data of
any customer’s account
237

BCSBI code is applicable to

238
Compliance officer for compliance of code is posted at-
239
. Scores>=85% in Scores>=85% in Scores>=85% in Scores<=85% in CRM,
CRM, CRM, CRM, Scores>=85% in ORM,
Scores>=85% in Scores>=85% in Scores<=85% in Scores<=65% in FEMA
ORM, ORM, ORM, 1
Scores<=65% in Scores<=75% in Scores<=65% in
FEMA FEMA FEMA
RFIA score & Self RFIA score & RFIA score & Scores will not be
Audit score RBOSA score credit audit score integrated 2

With his/her With his/her With his/her Son None of the above
4
Spouse Daughter
Notices in Notice Phone or Website Any One or More
4
Board helplines
If there is an With Both of the None of the above
existing declaration authorization of above
of deceased Survivor(s)
depositor provided Nominee(s) of 2
during his life time deceased
account
holders

instant credit of instant credit of instant credit of none of the above

local cheques only outstation local and
cheques only outstation 3
cheques only
promoting good to discourage C. Both of the none of the above
and fair banking competition above
practices amongst the 1
banks
1 Year 2 Years 3Years 5 Years 1
4 lacs 3 Lacs 2 lacs Any amount
4
with the permission if information is if it is the duty all of the above
of customer only mandatory by on the part of the
law bank to reveal the
information to the 4
public

A. products of the B. services of C. Both of the none of the above

3
bank the bank above
Branches Controlling Office of the none of the above
Offices Banking 2
Ombudsman
1

1
1

2
 As per BCSBI guidelines, If anything goes wrong in regards to product and
services the bank should immediately

240

As per BCSBI guidelines, Bank should promote promotional matters in

such a way that

241

As per BCSBI Code, Bank will ensure the account holder stating that the
payment is made to the nominee
242

As per BCSBI Code, Bank should explain to the guarantor about

243

To know the details about the affair of the account customer is facilitated
244 by

Full form of DEAF

245
tell the customer to appraise the correct the All of the above
bear with the bank bank’s liability in mistake and
the matter cancel any bank
charges that has 3
been charged
for the services

it is clear and not In any Both of the None of the above

misleading advertisement above
and promotional
literature that
draws attention
to a banking
service or
product or
includes a
reference to an
interest rate,
other fees, 3
charges and full
details of the
relevant terms
and conditions
will be made
available on
request.

A. with With letter of without insisting none of the above

succession administration or on any of the
certificate probate above document 3

The liability of B.Day to day c.Both of the D. none of the above

Gurantor conduct of the above 1
account
Provision of Internet Account ATM Account All of the above
Statement 4
/passbook
Depositors Depositors Depositors Depositors Association
Awareness Account Awareness Education Fund
Exercise Fund Education Fund Exercise Fund 2
3

2
 Which of the following amounts can be credited to Depositors Awareness
Education Fund (DEAF)

246

247 Fair Practices Code for Lender’s Liability has been circulated by
Customer day observed on
248
What is the Compensation amount per day to be paid by banks for delay
249 in re-crediting card holders account following the report failed ATM failed
Transaction
With in how many days the customer should lodge the Compliant of ATM
250 failed Transaction to be entitled to any compensation for the delay in
resolving his / her complaint.
Banks have been mandated to resolve customer complaints regarding
251 failed ATM transactions by re-crediting the customer's account within how
many working days from the date of complaint.
Banking Codes and Standards Board of India (BCSBI) has been set up on
the recommendations of

252

Which Among the following is not the objective of BCSBI Codes

253
 the credit the credit the credit the credit balance in a
balance in a balance in a balance in a deposit account (such as
deposit account deposit account deposit account SB, FD, CA etc.) with
(such as SB, FD, (such as SB, FD, (such as SB, FD, banks not operated upon
CA etc.) with CA etc.) with CA etc.) with for 8 years or more, or
banks not banks not banks not any amount remaining
operated upon for operated upon operated upon unclaimed for 8 years or
10 years or more, for 7 years or for 15 years or more. 1
or any amount more, or any more, or any
remaining amount amount
unclaimed for 10 remaining remaining
years or more. unclaimed for 7 unclaimed for 15
years or more. years or more.

IBA RBI BCSBI Banking Ombudsman 2

15th each month 5th of each 10th of each Once in a quarter
1
month month
Rs. 250 Rs. 500 Rs. 100 Rs. 300
3

7days 15 Days 10 Days 30 Days

4

15 Days 7 Days 3 Days 8 Dyas

2

Tarapore Narsimhan Damodran Raghuram Rajan

Committee on Committee on Committee : For Committee : For Financial
Customer Service banking Reforms improvement of Sector Reforms
customer 1
services in banks

Promoting good setting minimum Achieving higher Redressing Customer

banking practices, standards, operating Grievance
increasing standards and
transparency, promoting a
cordial banker- 4
customer
relationship.
1
2

4
 BCSBI functions under which organization
254

Membership of BCSBI by the bank is

255

As per BCSBI code, Key time Commitments for Loan recovery - time to
256
visit customer:
As per BCSBI Code Summary of key time commitments , notice period for
257 Closure or Shifting of Branch where branch of any other bank exists .

As per BCSBI Code Summary of key time commitments, notice period for
258
Change in credit card terms is
Employees working hours begin 15 min before customer service hours —
259
as per
Banking Codes and Standards Board of India prepared voluntary code put
in place in 2008. It sets minimum standards of banking practices f or
banks to follow, while dealing with MSEs.Code and Regulatory guidelines:
Which of the following statement is true.

260

As per BCSBI Code No fee will be recovered

261

As per BCSBI Code for MSME Disbursement to be made

262

As per BCSBI Code for MSME ,Banks will grant increase in the DP within
263
RBI Ministry of Independent Independent Stautory
Company Affairs Autonomus Body 3
Body
Mandatory as per Mandataory As Mandatory As Voluntary
RBI Per Govt of India Per BCSBI Act- 4
2006
9am -5pm 7am-7pm 8am.-6pm 7am -5pm
2
1 month 2Month 3 month 15 days
2

3 months 2 months 15 days 1 month

4
Goiporia Narsimhan Ghosh Jilani Committee
1
committee Committee Committee
Where code sets Where code Where code BCSBI codes are never
higher standards sets higher sets higher set Higher Standard than
than indicated in standards than standards than indicated in the RBI
the RBI indicated in the indicated in the instruction
instructions, such RBI instructions, RBI instructions,
higher standards RBI’s standards Banks are free to
will prevail. will prevail. decide which 1
standard to follow
with approval by
Board Director

For loans up to for loans up to For loans up to for loans up to Rs.2 lakh
Rs.2 lakh if the loan Rs.5 lakh Rs.5 lakh if the
is not sanctioned. loan is not 3
sanctioned.
within 1 working Within 2 Within 3 working Within 7 working days
day from the date working days days from the from the date of
of compliance with from the date of date of compliance with all terms
all terms and compliance compliance with and conditions. 2
conditions with all terms all terms and
and conditions. conditions.
48hours of 6 Hours of 24 Hours of 12 Hoursof Lodgment of
lodgment of Lodgment of Lodgment of Security 3
security. Security Security
3

3
 As per BCSB I Code for MSME Banks will release all securities on
receiving repayment of loan
264

As per BCSBI Code for MSME the banks will permit pre-payment of loans
265
without levying any prepayment penalty for loans upto
As per the codes of BCSBI, the member banks have undertaken some key
commitments to the target customers. Which among the following is not a
key Commitment?
266

As per BCSBI Code Time Commitment for Acknowledge of Complaint is

267
Time for letter of acceptance of award by complaintant may be extended
268 by Banking Ombudsman to a further period of ___ from the initial period of
Acceptance of Award.
The maximum permissible compensation amount that may be awarded by
269 Banking Ombudsman as a direct consequence of the act of omission or
commission of the Bank is
270 The cost involved in filing a complaint with Banking Ombudsman is
As per Banking Ombudsman Scheme , while dealing with the appeal, the
appellate authority is not empowered to

271

272 Who may be appointed as Banking Ombudsman

The time limit for filing an appeal with appellate authority under Banking
273
Ombudsman Scheme
The bank has to comply with the award of Banking Ombudsman if it is
274
accepted by the customer with in a period of
The Banking Ombudsman scheme is formulated in accordance with
275
 immediately Within 1 week. Immediately Immediately and in any
and in any case case not later than 2
not later than 1 weeks 4
week.
Rs.2. Lacs Rs. 5 Lacs Rs. 0.50 lacs Rs.1.Lac
2
To act fairly and To help To help To provide personalized
reasonably in all customers to customers use service to target
their dealings with understand how their account or customers
target customers bank's financial service 4
products and
services work.

2 weeks 1 week 3 days The same day

2
7 days 15 days 30 days 45 days
3

Rs. 10Lacs Rs. 20 Lacs Rs. 5.Lacs No Limit

2

Rs. 50 Rs.100 Rs.10 Free of Cost 4

Dismiss the Appeal Allow the appeal Refer back the Modify the award and
and set aside matter to the pass fresh award
Banking
Ombudsman for
fresh disposal 3
without
necessary
direction

DGM of RBI GM of RBI CGM of RBI Both (A) & (B) 4

30 days 15 days 45 days 60 Days
1
15 days 1 months 2 months 3 months
2
Section 35 A of Section 35 A of Section 35 A of Non of the above
Banking RBI Act 1949 COPRA -1986
Regulation Act 1
1949
4

2
4

3
4

1
 As per Section 2(1)(c) of Consumer Protection Act 1986,
'complaint' means any allegation in writing made by a complainant that
(i) an unfair trade practice or a restrictive trade practice
(ii) the goods/services bought/ hired suffer from one or more
defects/deficiency
296 (iii) a trader or service provider has charged a price in excess of the price
(iv) goods/ services which are hazardous or likely to be hazardous to life
and safety of the public when used

If a trader or a person or the complainant fails to comply with any order

made by the District Forum, the State Commission or the National
Commission, they shall be punishable 
297

As per section 30(A) of the Act, who can make regulations with this
Act with the previous approval of the Central Government for giving effect
298 to the provisions of this Act    

As per Consumer Protection Act 1986, 'unfair trade practice' includes

(i) falsely represents that the goods/services are of a particular standard,

quality or grade
(ii) falsely represents any re-built, second-hand, reno¬vated, reconditioned
or old goods as new goods
299 (iii) represents that the goods or services have sponsor¬ship, approval,
performance, characteristics, accessories, uses or benefits which such
goods or services do not have
Which among the above statement correct

Which Section of the Consumer Protection Act 1986 states about the
300
objects of the Consumer Protection Councils
(i), (ii) & (iii) (i), (ii) & (iv) (i), (iii) & (iv) (i), (ii), (iii) & (iv)

with imprisonment with with with imprisonment for a

for a term less than imprisonment for imprisonment term less than one month
one month a term less than for a term less but which may extend to
one year than one month one year 3
but which may
extend to three
years

Central Consumer National Ministry of Supreme Court of India

Protection Council Consumer Consumer Affairs
Disputes 2
Redressal
Commission
(i) & (ii) (i) & (iii) (ii) & (iii) (i), (ii) & (iii)

Section 5 Section 11 Section 6 Section 9

3
4

3
 Which of the following are the objects of the Consumer Protection
Councils

(i) the right to be protected against the marketing of goods and services
which are hazardous to life and property

(ii) the right to be informed about the quality, quantity, potency, purity,
301 standard and price of goods or services so as to protect the consumer
against unfair trade practices

(iii) the right to seek redressal against unfair trade practices or restrictive
trade practices or unscrupulous exploitation of con¬sumers
(iv) the right to consumer education

Under Section 9 of the Consumer Protection Act, which of the

following Consumer Disputes Redressal Agencies were constituted for the
purposes of this Act? (i) a Consumer Disputes Redressal
Forum in each district of the State
302 (ii) a Consumer Disputes Redressal Commission in the State
(iii) a National Consumer Disputes Redressal Commission
(iv) a Central Consumer Protection Council at the center
Which among the above statements are correct

If appeal has to be filed before the Supreme Court, the appellant is

303 required to deposit ........... percentage of amount in terms of an order of
the National Commission or rupees ------------, whichever is less
What are the qualifications to be appointed as the member of the
consumer dispute redressal forum/commission

304 (i) be not less than thirty-five years of age

(ii) possess a bachelor's degree from a recognised university
(iii) be persons of ability, integrity and standing
Which among the above statement correct

The District Forum shall have jurisdiction to entertain complaints where the
305 value of the goods or services and the compensation claimed does not
exceed ..................... rupees
The CDRF (District Forum) shall refer a copy of the admitted complaint to
306 the opposite party within ................... days from the date of its admission
for giving reply about the compliant.
The opposite party should give his version of the compliant within a period
307
of ............... days before the CDRF
The CDRF shall settle the complaint within a period of ........... where the
308 complaint does not require analysis or testing of commodities and
within ............ if it requires analysis or testing of commodities:
(i), (ii) & (iv) (i), (ii) & (iii) (i), (iii) & (iv) (i), (ii), (iii) & (iv)

(i), (ii) & (iv) (i), (iii) & (iv) (i), (ii) & (iii) (i), (ii), (iii) & (iv)

50% and 40% and 50% and 40% and Rs.60,000/-

Rs.50,000/- Rs.50,000/- Rs.35,000/- 1

(i) & (ii) (i) & (iii) (ii) & (iii) (i), (ii) & (iii)

50 lakhs 20 lakhs 10 lakhs 5 lakhs

2

21 days 30 days 25 days 15 days

1

21 days 30 days 45 days 60 days

2
60 adys and 90 30 days and 45 3 months and 5 1 months and 3 months
days days months 3
4

3
 Appeal against the order of District Forum can be preferred before
309 the State Commission within a period of ............. days from the date of the
order
For filing appeal before the State Commission, the appellant is required to
pay ................ amount in terms of an order of the District Forum
310

The State CDRC have the original jurisdiction over the complaints where
the value of the goods or services and compensation claimed exceeds
311 rupees ............... but does not exceed rupees .....................

Appeal against the order made by the State Commission can be preferred
312 before the National Commission within a period of ............... days from the
date of the order.
For filing appeal before the National Commission, the appellant is required
to deposit ........... amount in terms of an order of the State Commission 
313

An appeal filed before the State Commission or the National Commission

314 shall be disposed of within a period of ........... days from the date of its
admission
The National Consumer Disputes Redressal Commission (National
Commission) shall have jurisdiction to complaints where the value of the
315 goods or services and compensation, if any, claimed exceeds rupees

Appeal against the order of National Commission can be preferred before

316

Appeal against the order of National Commission can be preferred before

317 the Supreme Court of India within a period of ............ days from the date
of the order
Total Priority Sector advances should be ------ of Adjusted Net Bank Credit
318 (ANBC) or credit equivalent amount of Off Balance Sheet Exposure,
whichever is higher.
Total agricultural advances should be ------ of ANBC or credit equivalent
319 amount of Off- Balance Sheet Exposure, whichever is higher.
60 days 45 days 30 days 90 days
3

50% of the 50% of the 25% of the 35% of the amount or

amount or amount or amount or Rs.25000/- whichever is
Rs.25000/- Rs.35000/- Rs.25000/- less 1
whichever is less whichever is less whichever is less

Rupees 50 lakhs Rupees 20 Rupees 20 lakhs Rupees 10 lakhs and 1

and 1 Crore lakhs and 1 and 2 Crore Crore
Crore 2

45 days 90 days 30 days 60Days

3

35 % of the amount 50 % of the 50 % of the 50 % of the amount or

or Rs. 35,0000/- , amount or Rs. amount or Rs. Rs. 35,0000/- ,
whichever is less 25,0000/- , 50,0000/- , whichever is less 4
whichever is less whichever is less

90 days 120 days 60 days 30 days

1

One crore 50 lakh 2 crore 75 lakh

1

The President The Supreme The Ministry of No such option is

Court of India Consumer Affairs available 2

45 days 60 days 30 days 90 days

3

0.4 0.45 0.5 0.55

1

0.18 0.2 0.22 0.24

1
3

1
 Export credit to eligible activities under agriculture and MSE will be
reckonedfor ----------- lending under respective categories.

320

The current year’s targets for priority sectors and sub-targets will be
321
computed based on the following
The targets for Micro Enterprises within the Micro and Small Enterprises
322 segment (MSE) will be computed with reference to the outstanding credit
to MSE as on preceding
Description of the Micro & Small Enterprises Categories under Priority
323
Sector has been done based on
What is th he limits for investment in plant and machinery/equipment for
324
manufacturing enterprises to be classified as Micro Enterprises
What is th he limits for investment in plant and machinery/equipment for
325
manufacturing Sector to be classified as Small Enterprises
9. What is th he limits for investment in plant and machinery/equipment for
326 Service Sector to be classified as Microl Enterprises

What is th he limits for investment in plant and machinery/equipment for

327
Service Sector to be classified as Small Enterprises
11. The contingent liability accounts / off balance sheet item will not be
treated as a part of priority sector target achievement even if it qualify the
328 eligibility under priority sector:

12. In the case of proposals from SC/ST under priority sector, rejection
329 should be by which of the following authority

14. In ------- the Government of India has enacted the Micro, Small and
Medium
Enterprises Development (MSMED) Act to classify Micro, small and
medium enterprise
14. In ------- the Government of India has enacted the Micro, Small and
330
Medium
Enterprises Development (MSMED) Act to classify Micro, small and
medium enterprise
Priority sector bank normal C& I SBF
credit
dispensation
1

Adjusted Net Bank’s Total Bank’s net worth Bank’s Gross Advances
1
Bank Credit capital
31st March 1st April 31st Decmeber 25th December
1

Loan amount Plant & Turnover Working capital

2
Machinery
30.00 lakhs 25.00 lakhs 20.00 lakhs 50.00 lakhs
2
25.00 lakhs to 5.00 35.00 lakhs to 40.00 lakhs to 45.00 lakhs to 5.00cr
1
cr 5.00cr 5.00cr
Rs. 20.00 lacs Rs. 10.00 lacs Rs. 15.00 lacs Rs. 25.00 lacs
2

Rs. 15.00 laksh to Rs. 10.00 lakhs Rs. 25.00 lakhs to Rs. 25.00 lakhs to 5.00 cr
2
2.00 cr to 2.00 cr 2.00 cr
Can be considered can not be can be Can be considered with
considered considered with approval of controllers
the approval of 2
SIDBI

By sanctioning By Regional one step higher By Deputy General

authority Manager than sanctioning Manager 3
authority
2006 2007 2008 2005

1
1

1
 15. Which act has modified the definition of Micro, Small and Medium
331 enterprises engaged in manufacturing or production and providing or
rendering of services
1.  All advances granted to units in the ---------, irrespective of their
size of operations, location and amount of original investment
in plant and machinery will be treated as Micro Enterprise and
332 be covered under priority sector advances and will be eligible for
consideration under the sub-target (60 per cent) of the micro
enterprises segment within the MSE Sector.

As per the government directives , the cost of which shall be excluded

333 while calculating the investment in Plant and Machineries under priority
Sector
Power generation set and extra transformer installed by the enterprise as
perregulations of the State Electricity Board can be included while
calculating the investment in plant and Machineries
334

Gas producers plants can be part of investment in plant and Machineries

335
while calculating the investment in plant and Machineris
With a view to providing better customer service and ensuring that all loan
336 upto 25000/- to MSE /Small borrowers should be disposed off within------
days
22. What is the time norms for disposal of the loan under MSME from Rs.
337
25,000/ to Rs. 5.00 lacs.
As per RBI guidelines it is mandatory to acknowledge all application
submitted manually or online by MSME borrowers and to issue an
acknowledgement to the customer
338

24. What is the normal security margin for the loan upto Rs 25,000/-
339
under MSME segement
What is the normal security margin for the loan over Rs 25,000/ and upto
340
Rs. 5.00 lacs under MSME segement
26. What is the normal security margin for the loan above Rs. 5.00 lacs
341
under MSME segement
RBI act Banking Guideline by MSMED ACT-2006.
Regulation act NABARD 4

KVI sector Government SSI Agricultural

sponsored
scheme
1

Installation of Plant cost of both I & 2 ONLY 2

and machineries consumable 3
stores
Yes can be can not be 25% of the cost 50% of the cost can be
included included can be included included
2

NO YES 25% of the cost 50% of the cost can be

1
can be included included
2 weeks 5 weeks 4 weeks 3 weeks
1

2 weeks 5 weeks 4 weeks 3 weeks

3
YES NO over phone we only if loan are rejected.
can confirm

NIL 0.05 0.1 0.2

1
0.15 0.2 0.25 0.3
2
0.15 0.2 0.25 0.3
3
4

3
 27. In respect of some special schemes such as Entrepreneur Scheme or
Scheme for Financing Women Entrepreneurs (Stree Shakti Yojana),
concessions in margin money have been permitted
342

28. Under MSME Where subsidy/ margin money assistance is available

from Government and/or other agencies and is not less than ---- per cent
343 of total requirements, it should serve as margin and no fresh margin would
be asked for.
What is collateral security for MSME loan Up to to Rs. 10.00 lakhs
344
(including composite loan
30. All the eligible loans under MSME can be covered under
345

The working capital limits of MSE units shall be assessed on the basis of
346

The stand-by line of credit may be issued to meet genuine contingency

347
needs of exporters and MSE units if
CGTMSE was set up by
348
The annual guarantee fee will be paid to CGTMSE for MSE unit by
349
When can Application for guarantee cover be lodged with the CGTMSE
350 for creditfacilities sanctioned in a particular calendar quarter

In case an account covered under guarantee of CGTMSE is rescheduled,

351 the trust(CGTMSE) has to be informed regarding the new terms and
condition
Under MSME Repayment period of term loans should not exceed the
352 useful life of the machinery/equipment or --- years, whichever is shorter

Annual Review/ renewal exercise should be carried out in respect of all

working capital advances sanctioned to all small business units except in
353 cases where

Loans for food and agro processing will be classified under Micro and
Small Enterprises, provided the units satisfy ----------- criteria prescribed
354 for Micro and Small Enterprises, as provided in MSMED Act, 2006.

355 Which of the following can be classified under priority segment

NO Discretion of Yes Only for uneducated
Sanctioning women.
authority
3

0.1 0.25 0.15 0.2

3

nil 0.05 0.1 0.15

1
CGTMSE CGTFSEL SBI life Rinn With any insurance
Raksha company as per consent 1
of the borrower
Projected annual Based on As per ABF Traditional Method
turnover audited balance 1
sheet
Borrower is CRA 100% collateral cannot be issued minimum 75 % collateral
1
rated is required.
Government of SIDBI IDBI Both 1 & 2
4
India
Bank Borrower Guarantor both bank and
4
guarantor
at the end of the No after the Any time within After the sanction of loan
next calendar disbursement that financial year 1
quarter immediately
No it is optional Yes none of the above
3

10 years 8 years 7 years 5 years

3

Limit is below Rs. Borrower is Repayment Both 1 & 2

10.00 lacs unable to submit programme is
financials stipulated 3

Loan amount Investment in Location of unit Both 1 &2

plant and
machineries 2

Agriculture MSME Export credit All of the above 4

3

2
4
 What are the categories of Agriculture under the priority sector lending
356
Choose the correct statement/s
370

Which of the following statement/s is true

371

Which of the following statement/s is true

372

The Government of India has enacted the Micro, Small and Medium
373
Enterprises Development under
Advances to Bank Directors’ is restricted under which act
374

Can Loans and advances be granted to relatives of the Directors of the

bank?
375

There is restriction on Advances against Sensitive Commodities

376

5. Section 10(1)(b)(ii) of --------------------stipulates that a banking company

shall not employ or continue the employment of any person whose
377 remuneration or part of whose remuneration takes the form of commission
or a share in the profits of the company.
Banks should not offer any banking products, including online remittance
schemes etc., with prizes /lottery/free trips (in India and/or abroad), etc. or
any other incentives having an element of chance, except inexpensive
378 gifts costing not more than Rupees ---------- as such products involve non-
transparency in the pricing mechanism and therefore go against the spirit
of the guidelines.
Banks may grant advances against the security of shares, debentures or
379
bonds to individuals subject to the following conditions
Farm credit Agriculture Ancillary activities all of the above
4
Eligible Loan to Eligible loan to Either 1or 2 None of the above
MSME can be MSME can be
covered by SBI Life covered by 2
CGTMSE
Loan to renewable Loan to export Both statements none of the above
energy does not credit can be are true
come under Priority classified as 2
sector lending priority sector
lending
Loan to Social Loan to export Only a Both 1 and 2
infrastructure can credit can be
be classified as classified as 4
priority sector priority sector
lending lending
MSMED act 2006 MSMED act MSMED act 2005 MSMED act 2008
1
2007
Section 20(1) of Section 23(1) of Section 22(1) of No restriction at all.
the Banking the Banking the Banking 1
Regulation Act Regulation Act Regulation Act
Can be granted Yes can be With the prior Both 1 & 2
with the guarantee granted without approval of the
of concern directors any approval board only 3

By Bank Loan Due to Under selective None of the above

policy government credit 3
restriction control(SCC)
Banking NI act RBI ACT SBI act
Regulation Act
1

250 300 350 400

Purpose of the Amount of Margin and ALL

4
Loan advance lending policy
4

4
 Which of the following statement is true a) Banks and their
subsidiaries should not undertake financing of 'Badla' transactions.
b) Share and stock brokers/commodity brokers may be provided need
380 based overdraft facilities / line of credit against shares and debentures
held by them as stock-in-trade

Which of the following statement is true for loan against Mutual Fund:-
a) The unit should be listed in stock exchange
381 b) The unti should have completed lock in period

Can bank extend credit facility directly or indirectly to stockbrokers for

arbitrage operations in Stock Exchanges?
382

Grant of advance against NR(E) and FCNR(B) deposits would be subject

to the guidelines issued under
383

Can bank extend Loans/Advances against Indian Depository Receipts

(IDRs)
384

Which of the following statement is true a) There is no objection

to the bank granting loans against the specially minted gold weighing
maximum up to 50grams for non speculative purposes.
385 b) Banks should desist from granting advances to the silver bullion dealers
which are likely to be utilised for speculative purposes

Which of the following statement is correct regarding Bank finance to

Infrastructure:
386

Which of the following statement is correct regarding Bank finance to

Infrastructure: a) The overall exposure must be within prudential
exposure norms
387 b) In SBI the loan to infrastructure( above a certain project cost) will be
handled by PFSBU
Only a Only b Both a&b None

Only a Only b Both a& b Either a or b

3

Yes can be Credit facility Yes, if the Can be sanctioned with

extended with can not be collateral is 150% approval of RBI.
approval of sanctioned of the limit 2
controllers sanctioned
Foreign Reserve Bank Individual Bank None of the above
Exchange of India Risk appetite
Management Act, directives 1
1999
Yes, with No , loans With the d) None of the above
appropriate cannot be approval of
Margin granted against controllers only 1
IDRs
Only a Only b Both a & b None of the above

The overall There is no The prior None of the above

exposure must be restriction for permission from
within prudential loan to Circle CGM is
exposure norms infrastructure required for loan 1
to infrastrucre.

Only a Only b Both a & B None of the above

3
3

3
 16. Project finance Strategic Business unit(PFSBU) in our bank will
handled the following segment
388

Which of the following statement is true a) Advances to Bank

Directors’ is restricted under Banking regulation act
389 b) Advances to Bank Directors’ is restricted under RBI act and NI act

390 Which of the following statement is true

Which of the following statement is true:- a) Banks and their
subsidiaries can undertake financing of 'Badla' transactions.
b) There is no Restriction on payment of commission to staff members
391 including officers

Which of the following is correct regarding “Prudential Norms”

392

Which is correct regarding “Unsecured Exposure”

393

394
395
 Loan to Finance to For cash credit None of the above
infrastructure Home loan limit above Rs.
above a certain project 500.00 cr 1
project cost
Only a Both a & b Either a or b Either a or b
1

Only a Only b Both a & b None of the above 3

Only a Only b Both a &b Neither a or b

Norms/stipulation Norms Norms / None of the above

put by Reserve /stipulation made stipulation made
bank of by State Bank of by Government of 1
India/Regulators India India

unsecured unsecured unsecured unsecured exposure is

exposure is as exposure is as exposure is as as an exposure where
an exposure an exposure an exposure the realisable value of
where the where the where the the security (primary plus
realisable value realisable value realisable value collateral), as assessed
of the security of the security of the security by the Bank / approved
(primary plus (primary plus (primary plus valuers / RBI's inspecting
collateral), as collateral), as collateral), as officers, is ab-initio not
assessed by the assessed by the assessed by the more than 40% of the
Bank / approved Bank / approved Bank / approved outstanding exposure.
valuers / RBI's valuers / RBI's valuers / RBI's 1
inspecting inspecting inspecting
officers, is ab- officers, is ab- officers, is ab-
initio not more initio not more initio not more
than 10% of the than 20% of the than 30% of the
outstanding outstanding outstanding
exposure. exposure. exposure
 1

1
3

1
#N/A
#N/A
 The definition of “Unsecured Exposure” has been given by
396
RBI has defined unsecured exposure as an exposure where the
realisable value of the security (primary plus collateral), as assessed by
397 the Bank / approved valuers / RBI's inspecting officers, is ab-initio not
more than -------------- of the outstanding exposure.
The marginal cost of funds will comprise of
398
MCLR will be a
399

Banks shall review and publish their Marginal Cost of Funds based
Lending Rate (MCLR)

400

Which of the following statement is true:-

a) Banks shall have the freedom to determine the interest rates on the
advances linked to market determined external benchmarks.
401 b) banks shall have the option of publishing MCLR of any other longer
maturity.

Banks shall have a -----------delineating the components of spread

charged to a customer.
402

The credit risk premium charged to the customer represents

403
RBI By Bank By the empanel None of the above
1
valuer
0.1 0.2 0.25 0.3
1

Marginal cost of Return on Both 1 and 2 None of the above

3
borrowings networth
Tenor linked cost of credit both a and b None, it will be decided
benchmark linked bench by RBI 1
mark
Banks shall By Reserve Of different Either a or c
review and Bank of India on maturities every
publish their pre-announce month on a pre-
Marginal Cost of date announced date
Funds based with the approval
Lending Rate of the Board or
(MCLR) empowered 1
committee with
prior approval of
Reserve Bank of
India

Only a Only b Both a & b None

Board approved RBI approved Board approved None of the above

policy policy policy duly vetted
by RBI 1

default risk cost of deposit cost of credit Loss given default

arising from loan 1
sanctioned
1

1
 The Marginal Cost of Funds based Lending Rate (MCLR) prevailing on the
date of first disbursement, whether partial or full, shall be applicable till

404

The marginal cost of borrowings shall have a weightage of ----------% of

405
Marginal Cost of Funds
A term loan of Rs. 75.00 lacs was sanctioned to Shri Pankaj Kumar Singh
under Collateral Free Loan Scheme with CGTMSE coverage for purchase
of three truck chassis and fabrication of milk tankers there on. An amount
of Rs. 50.00 lacs for purchase of truck chassis was disbursed directly to
the current account of the dealer M/s Shivam Automobiles Pvt. Ltd The
disbursement for fabrication of the milk tankers were made in tranches
( Rs.10.00 lacs, Rs. 15.00 lacs ) to the account of the fabricator M/s
Jamshed Fabrication Works. The borrower submitted sale letters &
registration certificates for two vehicles only and failed to produce the third
406 vehicle for inspection. He had not yet submitted the documents related to
the third vehicle despite regular follow-up from the Branch. This account
subsequently turned NPA and was migrated to SARB for initiating hard
recovery measures. Based on above information, what are the prima facie
lapses are observed:

Mr. Ravindra Kumar was maintaining a current account with our bank. He
was maintaining the account for the past five years. He was running
provisions store . He used to deposit cash as sale proceeds. On one
occasion, he deposited Rs. 3.75 lakhs in his current account and cashier
found three fake notes ( Rs. 500 hundred currency). As the customer was
having a good relation with staff, the cashier wrote :” Fake” over the
currencies and returned it to Mr Ravindra Kumar. The cashier used to put
407 cross(x) over the currencies or write “Fake” and returned the same to
tenderer of currencies. This came to the notice of RBI and penalty was
imposed on Bank for violation of directives of RBI on “ Detection and
Impounding of “Counterfeit Notes”.
Based on above example, choose the correct option:-
 the next reset at any date as At every year As and when advised by
date, irrespective decided by bank end, irrespective Reserve Bank of India
of the changes in , irrespective of of the changes in
the benchmark the changes in the benchmark
during the interim the benchmark during the interim 1
during the
interim

a) 92 95 96 98
1
There was no due It seems that full Pre-sanction Only a& b
diligence on amount was survey was done
seller/dealer disbursed at all
without margin

4
1

4
 Mr. Ravindra Kumar was maintaining a current account with our bank. He
was maintaining the account for the past five years. He was running
provisions store . He used to deposit cash as sale proceeds. On one
occasion, he deposited Rs. 3.75 lakhs in his current account and cashier
found three fake notes ( Rs. 500 hundred currency). As the customer was
having a good relation with staff, the cashier wrote :” Fake” over the
currencies and returned it to Mr Ravindra Kumar. The cashier used to put
408 cross(x) over the currencies or write “Fake” and returned the same to
tenderer of currencies. This came to the notice of RBI and penalty was
imposed on Bank for violation of directives of RBI on “ Detection and
Impounding of “Counterfeit Notes”.
Based on above example, choose the correct option:-

Compliance Policy provides governing principles for managing the

409
____________
The Compliance Function has to ensure strict observance of all _______
provisions contained in various legislations such as Banking Regulation
410 Act, Reserve Bank of India Act, Foreign Exchange Management Act ,
Prevention of Money Laundering Act etc

. Reserve Bank of India ('RBI') issued guidelines on 'Compliance Function

411
in Banks' in __________
412 RBI circular on compliance function is issued in _______
Penal action by ___________ resulting in material financial loss is very
413
significant in today’s international scenario.
The risk depends entirely on

414

Compliance Policy provides ___________ for managing the compliance

415
framework
The Compliance policy covers:
416

Compliance is most effective in a __________ culture that emphasizes

417
standards of honesty and integrity
______________ of the Bank is responsible for overseeing the
418 management of Compliance risk and implementation of the Compliance
risk management framework
 After detecting In case of If the customer is 4. Only 1 & 2
counterfeit note, detection of genuine one, the
the banker has to counterfeit notes fake currencies
impound the same of 5 or more , in may be returned.
single
transaction , it
should be
reported to 4
police station

Compliance Regulatory Statutory None

1
framework framework framework
Legal Obligatory Statutory None of them

39173 39539 39326 39692

1
2015 2016 2017 2018 1
Government SEBI Regulator Banks
3
Business standards Implementation Both of above None of above
laid down by an of these
organization business
standards & of 3
the controls
there on
governing Regulatory Compliance None of above
1
principles guidelines philosophy
Domestic Overseas Both domestic & None of above
operations operations. overseas 3
operations
Cooperative Corporate individual None
2
Branch Manager ). Regional Chairman The Board of Directors
Manager of the bank 4
4

1
1

4
 Where the Bank has outsourced certain activities, compliance
419 requirements with regard to those activities will continue to be the
responsibility of the _____
420 Ownership of being in compliance rests with the ________
Audit is ________
421

Business Units' Departments/ Operating Units are

422
Compliance is the responsibility of ___________ in the organization
423

Compliance culture and awareness may be tested through a number of

424
mechanisms such as __________________
As per RBI requirement, the activities of the Compliance Function should
425
be subject to annual review by the ___________
For effective management of Compliance risk, the ______________
426
should cover compliance obligations
The Compliance functionaries will have a reporting relationship to the
427 __________

All regulatory requirements or guidelines laid down by regulatory

authorities viz. Reserve Bank of India (RBI), Securities & Exchange Board
428 of India (SEBI) etc, that relate to the core business activities of the Bank
may be considered as Core areas for the ________________

Areas related to Income-tax Act, 1961, The Companies Act, 1956,

429
Industrial Disputes (Banking and Insurance) Act, etc. will be
_______________would be primarily responsible for approving the
430 Compliance Policy and Compliance risk management framework for the
Bank
Compliance Risk Management Committee (Comp RMC) has been
431 constituted in the Bank is headed by ____________

The head of SEBI related compliance in the Bank designated as

432 _________________

Issue guidance on state level regulations and compliance requirements

and communicate the guidance on state level requirements to respective
433 CCs /SCFs is the responsibility of
Regulators Banks. outside agencies None of above.
2

Business Units Operating units both of above None of above 3

Ist line of defence 2nd line of 3rd line of 4th line of defence
defence defence 3

Ist line of defence 2nd line of 3rd line of 4th line of defence
1
defence defence
). Branch managers Group Chairman every individual
Compliance 4
officer
employee surveys Voting system both None
1
and reviews
External audit Statutory audit internal audit. Concurrent audit
3
loan manuals Circulars operating RBI guidelines
3
manuals
Group Managing Chief General Chairman
Compliance director Manager 1
Officer
Regulation Business Compliance Operations
Function
3

Core areas None Core other areas None

2
areas
The Board of Audit Committee both None
Directors of the Bank 3

Chief General Group (MD Compliance Chairman.

Manager compliance & Risk) 3
officer
Vice President Chief General G.M.-SEBI None of above.
(Compliance Manager SEBI 1
-SEBI),
Circle Compliance Regional Group None of above
Officer (LHO) Compliance compliance
Officers (in the officer 1
Circle)
2
3

1
 To Coordinate the Compliance Monitoring and Testing activities with the
Circle Audit Team is the responsibility of
434

The ________ issues regulatory guidelines from time to time, which are
435
required to be complied with by the Bank
Compliance breaches are incidents that may lead to _________
436
sanctions, financial loss or damage to reputation
All compliance breaches in Core areas of compliance, irrespective of the
437 magnitude of the impact, need to be reported by the Business
Units/departments to the __________________.
The Group Compliance Officer of the Bank shall, on a __________,
438 apprise Audit Committee of the Board of the Bank of material regulatory
breaches identified or reported,
The _____________should be a member of the Product / Process
Approval Committee to ensure that new products / processes have
439 clearance from the compliance perspective

The Compliance functionaries, duly authorized, shall have the right to

access ______________. In order to discharge their responsibilities in
440 examining/ investigating possible breaches of the Compliance Policy

RBS framework for Scheduled Banks has been named as ________

441

Risk Assessment Report (RAR) containing the major areas of divergence

in loan assets, other assets, priority sector classification, risk weight and
442 also the major areas of non-compliance is prepared by ______

In any organization an important document is the ____________

443
The Compliance Function has received a _____ level of attention from
444
regulators worldwide.
Compliance risk management involves_________
445
Group Compliance Officer reports to
446

Whistle blower policy are under________ of compliance function.

447
Circle Compliance Regional Group None of above
Officer (LHO) Compliance compliance
Officers (in the officer 1
Circle)
RBI SEBI MCA Corporate office of bank
1
legal regulatory a, b or both a&b None of a or b
3
Group CGM of Circle MD (risk & Board of directors
Compliance compliance) 1
Officer
Monthly basis quarterly basis Half yearly Yearly
2

Group Compliance General Either (a) or (b) Neither a nor (b)

Officer Manager
(Compliance- 2
Domestic)
Inspection and Concurrent Audit RBI Inspection any one or all of them
Audit Reports Reports Reports
4

Supervisory Assessment of Supervisory None of them

Program for Risks and Program for risk
Assessment of Capital (ARC) based framework 1
Risks and Capital
(SPARC).
SBI RBI SEBI None
2

Code of Conduct business ethics. both of them None of them

3
High Medium Low Neutral
1
Only first line of first & second Second & third Three lines of defence:
4
defence line of defence line of defence
MD(Compliance & Audit committee Board of directors Chairman
risks) of board 1

Core areas Non core areas both of them None of them

2
1

2
 CVC related guidelines are under________ of compliance function
448
Codes applicable to foreign jurisdictions/businesses will form part of
449
_______ area of Compliance Function
Fixed Income Money Markets & Derivatives Association (FIMMDA),
Foreign Exchange Dealers' Association of India (FEDAI), Association of
450 Mutual Funds of India (AMFI) will also be included in _________ of the
Compliance Function
Financial statements are useful in
451
Banks are also required to comply with the Accounting Standard 1 (AS1)
452 on ____________ issued by the Institute of Chartered Accountants of
India (ICAI).
.__________ classified as sub standard and doubtful (Non performing)
advances, when upgraded to standard category also attract a general
453 provision higher than what is required for otherwise

If one of the facilities / accounts of a borrower have been restructured, the

454 bank should ________ entire outstanding pertaining to all facilities /
accounts of that particular borrower
Banks are required to comply with the _______ stipulated under the
455 various accounting Standards issued by the Institute of Chartered
Accountants of India.
Banks should disclose the full particulars of all the ______ issued by them
456
during the year,
Reserve Bank is empowered to impose penalties on a commercial bank
457
under the provision of Section 46 (4) of the ___________
Is the following statement True-“The primary objective of the KYC, AML &
CFT Policy of the Bank, is to prevent the Bank from being used,
458 intentionally or unintentionally, by criminal elements for money laundering
or financing of terror activities.”
Core areas Non core areas both of them None of them
2
Core areas Non core areas both of them None of them
1
Core areas Non core areas both of them None of them
1

Making economic Making Making balance None of these

1
decisions. Investments sheets
Accounting norms Disclosure of Accounting None of these
Accounting practice 2
Policies
Standard accounts NPA accounts Doubtful Restructured accounts
accounts
4

Write off Disclose Waive None of these

2

Collateral norms NPA norms Disclosure None of them

norms 3

Letter of credit Bank Commercial Letters of Comfort

4
Guarantees papers (LoCs)
Company Act. RBI Act. Banking None of above.
3
Regulation Act,
TRUE
1
2

1
 The purpose of the KYC, AML & CFT Policy of the Bank is to-

459

As per Section 3 of the PMLA (Prevention of Money Laundering

Act 2002) what is meant by the “Offence of Money Laundering” -

460
Prevent criminal Put in place Monitor cash All of the Above
elements from appropriate transactions for
using the Bank for controls for filing of Cash
money laundering detection and Transaction
& Enable the Bank reporting of Reports & File
to know/understand suspicious Counterfeit
the customers and activities in Currency 4
their financial accordance Reports in
dealings better. with applicable cases of
laws. detection of
counterfeit
currency.

Money The offence of Financial Whosoever directly or

launderers using money transactions indirectly attempts to
the banking laundering where the end indulge or knowingly
system for usually involves use of funds assists or knowingly is
cleansing ‘dirty creating a web goes for a party or is actually
money’. of financial financing of involved in any process
transactions. terror or activity connected
irrespective of with the proceeds of
the source of crime (including its 4
the funds. concealment,
possession, acquisition
or use) and projecting
or claiming it as
untainted property shall
be guilty of offence of
money laundering.
4

4
 As per Section 12 of PMLA which of the following obligations are placed
on the Bank-

461
Maintaining a Furnishing Verifying and All of the above
record of information of maintaining
prescribed prescribed records of identity
transactions and transactions to of its clients (i.e.
preserve record for the specified complying with
a period of 5 years authority and the KYC
from the date of preserve record requirements) &
transactions of such identifying
transactions for beneficial
a period of 5 owners, if any, of
years from the such clients and
date of preserving
transactions records for a
period of 5 years 4
after the
cessation of
relationship with
the clients in
respect of
account opening
forms and KYC
documents
4
 As per Rule 2(h) of the PML (Maintenance of Records) Amendment Rules
2013 “‘transactions’ means a purchase, sale, loan, pledge, gift, transfer,
delivery or the arrangement thereof”. In addition to this which of the
following have been included within the meaning of a ‘transaction’-

462

Non compliance with KYC/AML/CFT standards can lead to use of the

463 technology channels of the Bank for Money Laundering/financing terrorism
activities and thus expose the Bank to-
Which of the following are key elements of the KYC/AML/CFT Policy of the
Bank -
464

Bank’s Customer Acceptance Policy (CAP) lays down -

465
opening of an deposits, any payment All of the above
account withdrawal, made in respect
exchange or of playing games
transfer of funds of chance for
in any currency, cash or kind
whether in Cash including such
or by Cheque, activities
Payment Order associated with
or other casino;
Instruments or establishing or
by Electronic or creating a legal
other Non- person or legal
Physical means; arrangement 4
any payment
made or
received in
whole or in part
of any
contractual or
other legal
obligation

Operational Risk. Reputation Risk. Compliance Risk All of the above

and Legal Risk. 4

Customer Customer Monitoring of All of the Above

Acceptance Policy Identification Transactions and
Procedures Risk 4
Management
Criteria for Criteria for A & B both are None of the above
acceptance of customers to correct
customers open account 1
with Bank.
4

1
 Which of the following is a ‘Customer’ for the purpose of Bank’s Customer
Acceptance Policy?

466

As per Rule 9 (3) of the PML Amendment Rules 2013, Who is the
Beneficial owner, where the client is a Company–

467
A person or an One on whose Beneficiaries of All of the Above
entity that behalf the transactions
maintains an account is conducted by
account and/or has maintained i.e. professional
a business the beneficial intermediaries,
relationship with owner such as Stock
the Bank (including Brokers,
borrowers and Chartered
guarantors of loans Accountants, 4
sanctioned by the Solicitors etc., as
Bank, Demat permitted under
account holders, the law
Locker holders,
etc.)

The beneficial The beneficial The beneficial All of the Above

owner is the owner is the owner is the
Promoter of Director of natural
company. company. person(s), who,
whether acting
alone or
together, or
through one or
more juridical 3
person, has a
controlling
ownership
interest or who
exercises
control through
other means
4

3
 As per PML Amendment Rules 2013, Who is the Beneficial owner,
where the client is a Partnership firm-

468

As per PML Amendment Rules 2013, Who is the Beneficial owner,

where the client is an Unincorporated Association or Body of Individuals -

469

As per PML Amendment Rules 2013, Who is the Beneficial owner,

where the client is where the client is a Trust -

470
Who, whether The Initial The partners who All statements are true
acting alone or partners of the are at present
together, or partnership firm sharing the profits
through one or who formed the of the firm
more juridical Firm
person, has
ownership 1
of/entitlement to
more than fifteen
percent of capital
or profits of the
partnership

A person, whether A person All the persons All of the Above

acting alone or whether acting who created the
together, or through alone or Unincorporated
one or more together, or Association or
juridical person, through one or Body of
has ownership of or more juridical Individuals.
entitlement to more person, has
than Five percent ownership of or
of the property or entitlement to
capital or profits of more than 2
such association or Fifteen percent
body of individuals; of the property
or capital or
profits of such
association or
body of
individuals;

The beneficiaries The identification Any other natural All of the above
with fifteen percent of beneficial person exercising statements are true
or more interest in owner(s) shall ultimate effective
the trust. include control over the
identification of trust through a
4
the author of the chain of control or
trust. ownership
1

4
 As per PML Amendment Rules 2013 “Where no natural person is
identified in case the client is a Company / Partnership firm /
471 Unincorporated Association or Body of Individuals, Who will be treated as
‘Beneficial Owner’ is the relevant natural person who holds the position of
senior managing official.” Is this statement True?
In which of the following case, a customer of the Bank is permitted to act
on behalf of another person/entity (beneficial owner), -

472

Customer identification process requires

473
 TRUE

To represent To represent To enter into All of the above

individual for legal / fiduciary transactions /
transactions / entities for agreements with
agreement within transactions / the Bank as
the delegated agreements / directed by
authority by way of arrangements legislative /
express with the Bank, executive /
documentary within the judicial authorities
mandate in his express to the extent and
favour by the documentary for the purpose 4
maker of such delegated specified by such
mandates and to authority in his authority
the extent favour by the
permitted by such maker of such
mandate subject to mandate subject
laws of the land to laws of the
land.

Identifying the Collecting OVDs Both A & B None of the Above

customer and and photograph. statements are
verifying his/her correct.
identity by using
reliable,
1
independent
source
documents, data
or information
1

1
 Which of the following statements is true?

474

What is the purpose of Unique Customer Identification Code (UCIC) ?

475

In our Bank which number is used as UCIC?

476
Mandatory’ Other ‘optional’ Mandatory and All of the above
information customer other ‘Optional’
required for KYC details/additional information
purpose, which the information, if collected from the
customer is obliged required, may be customer is to be
to give, shall be obtained treated as
obtained at the time separately after confidential and
of opening an the account is details thereof are 4
account or during opened with the not to be divulged
periodic updation explicit consent for cross selling
of the customer or any other
purpose.

UCIC helps banks It smoothens Both statements None of the above

to identify banking A & B are
customers, track operations for correct
the facilities the customers
availed, monitor
financial
transactions in a
holistic manner and 3
enable banks to
have a better
approach to risk
profiling of
customers.

Unique Account Unique Aadhar Customer All of the above

number of number of Information File 3
customer customer (CIF)
4

3
 Which of the following statements is true in respect of updating of KYC
exercise?

477

A non- account holder has approached in your branch for high value
transaction, is it necessary for your branch to follow Customer
Identification process?
478

Why Letters of Thanks in all instances of opening of new accounts to be

sent by registered post at the recorded addresses to all customers?
479
Customer Full KYC Full KYC exercise All of the above
identification data exercise will be will be required to
(including required to be be done at least
photograph/s) done at least every ten years
should be every eight for low risk
periodically years for individuals and
updated after the medium risk entities
account is opened; individuals and
Full KYC exercise entities 4
will be required to
be done at least
every two years for
high risk individuals
and entities

No, as he is not our No, as we do not No, as it may Yes, Customer

customer. have Banker- annoy the non- Identification process is
Customer account holder. to be carried out in
relationship with respect of non- account 4
him holders approaching
bank for high value
transactions.

For the purpose of For verification Both statements None of the above
thanking customers of genuineness A & B are
for opening the of address correct
account with the furnished by the 3
Bank account holder
4

3
 As per Rule 9 of the PML Amendment Rules 2013, which of the following
group contains all “Officially Valid Document” [OVD] for Proof of identity
and address-?

480

Which are the OVDs as per Rule 2 (d) of PML Amendment Rules 2013 for
Low risk customers where simplified measures are applied?

481

A walk-in customer has approached your branch to deposit amount more

than Rs 50000/- and during interaction with customer you find sufficient
reason to believe that the customer is intentionally structuring a
482 transaction into a series of transactions below the threshold of Rs.50,000/-
what action will be warranted on the part of branch-
Passport, Passport, Passport, Driving Passport, PAN, Voter’s
Driving license, Driving License, License, Voter’s Identity Card, The letter
Voter's Identity PAN, Voter’s Identity Card, The issued by Unique
Card, Identity Card, letter issued by Identification Authority of
Job card issued Unique India (UIDAI) containing
by NREGA duly Identification details of name, address
signed by an Authority of India and Aadhaar Number
officer of the State (UIDAI)
Government, containing details
Letter issued by of name, address
1
the National and Aadhaar
Population Number
Register
containing details
of Name &
Address

Identity card with Letter issued by Any of the None of the above
applicant's a gazetted documents
photograph issued officer, with a mentioned at (A)
by Central/ State duly attested and (B) for the
Government photograph of purpose of proof
Departments, the person of identity and
Statutory/Regulator proof of address
y Authorities, Public
Sector 3
Undertakings,
Scheduled
Commercial Banks,
and Public
Financial
Institutions

Branch should Branch should Both statements None of the above

verify identity and consider filing a A & B are
address of the Suspicious correct
customer Transaction 3
Report (STR) in
this regard
1

3
 A Non account holder has approached your branch to remit Rs 25000/-
only, to a foreign country, what are the instructions in respect of verification
of identity of such customer-
483

Which of the following statements is true in regard to eKYC-

484

Enhanced Customer due diligence (CDD) is required to be exercised in

485 respect of what type of customers-

Who are “Non face to face” customers for bank–

486
No need of No need of It depends on the As per Rule 9 (1) (b) (ii)
verification of verification of desertion of of the PML Rules, 2005
identity of such identity of such Branch head banks are required to
customer as he is customer as the verify the identity of the 4
not our account amount is very customers for all
holder small international money
transfer operations

RBI guidelines The information Customers’ All the above

permit acceptance containing authorization to statements are true
of e-KYC service demographic UIDAI for sharing
as a valid process details and e-KYC data with
for KYC verification photographs the bank is to be
under Prevention of made available obtained either in
Money Laundering from UIDAI as a physical
(Maintenance of result of e-KYC form/electronic
Records) Rules, process (“which form.
2005 is in an
electronic form
and accessible 4
so as to be
usable for a
subsequent
reference”) is
treated as an
‘Officially Valid
Document’
under PML
Rules 2005

Politically exposed Relatives and All customers All of the Above

Persons (PEPs) associates of categorized as 4
PEPs high risk
The customers The customers None of the None of the Above
entering branch with whom the above.
premises with face Branch has not
covered with scarf had direct
or helmet. interaction at 2
the time of
opening the
account
4

2
 Who are “Money Mules” -

487

In case of wire-transfer the beneficiary bank should take up the matter with
the ordering bank if a transaction is not accompanied by detailed
information of the fund remitter. If the ordering bank fails to furnish
information on the remitter -

488
A person who Mules carrying An individual None of the above
works hard like a money on their with a bank
‘Mule’(an animal) to backs. account,
earn money recruited to
receive
Cheque
deposits or
Wire
transfers in
its account
and then 3
transfer these
funds to
accounts held
on behalf of
another
person or to
other
individuals,
minus a
certain
The bank should The beneficiary The beneficiary None of the above
credit the account bank should commission
bank should
of beneficiary on hold the credit payment.
consider
the risk and on the risk and restricting or
responsibility of the responsibility of even terminating
ordering bank the ordering its business 3
bank relationship with
the ordering
bank
3

3
 Which of the following statement is True?

489

“While functionaries of alternate channels (BCs)/ (BFs) will facilitate

completion of KYC formalities in respect of accounts opened through
them, Primary responsibility of ensuring KYC compliance in respect of all
490 accounts maintained with it including review of KYC, risk categorization,
monitoring of transactions etc. will rest with the parent branch.” Is this
statement True?
Which of the following statement is TRUE-

491

A dedicated Anti Money Laundering Monitoring office for the Bank is

492
established at -
The officer-in- The Both the None of the above
charge vested with employee/officer, statements are
the authority to who has True
open the account, interviewed the
should ensure customer should
compliance with the subscribe his
KYC guidelines signature, in the
space provided
in the account
opening form, for
having
interviewed the 3
prospective
customer and
should ensure
that all aspects
of KYC
guidelines are
complied with.

TRUE

Customer profiles For opening While transferring All of the Above

have to be accounts by accounts from
reviewed whenever transfer from inoperative
the branch has other branches accounts and
doubt about the customer dormant accounts
authenticity / profile should be to live ledger, it
veracity or the updated should be 4
adequacy of the ensured that KYC
previously obtained guidelines are
customer complied with.
identification data

Mumbai Delhi Chennai Jaipur

4
3

4
 Which of the following statement is TRUE-

493

Suspicious Transactions Reports (STRs) can be classified into two

following broad categories based on the source of the alert which resulted
494 in escalating such STRs

It is likely that in some cases Transactions are abandoned / aborted by

customers on being alerted when asked to give some/more details or to
provide documents/additional documents, in such cases-

495

In terms of rules of Prevention of Money Laundering Act 2002, banks are

obliged to file following reports to the Financial Intelligence Unit-India (FIU-
496 IND) which has been set up as a national unit under Ministry of Finance,
for inter-alia, collecting, analyzing, disseminating information in respect of
financial transactions :-
All functionaries The concerned Both statements None of the above
shall functionaries at A & B are
submit/provide the should not tip off correct.
details/data, the customer
requisitioned by the and/or divulge
AML/CFT Cell, on the information
the called for by the
account/customer Cell to the
expeditiously, in concerned
order to facilitate customer /
finalization of these others nor 3
alerts within the should the
specified time transactions in
frame the account
being
investigated be
stopped/restrain
ed.

Genuine STRs and System Original STRs None of the above

False STRs generated and repeated
STRs and STRs 2
Subjective
STRs
Branches need not Branches Branches should None of the above
report such should report not report such
attempted all such attempted
transactions in attempted transactions in
STRs, as the transactions in STRs as some of
transactions have STRs, even if these may be
not been not completed genuine 2
completed. by customers, transactions
irrespective of
the amount of
the transaction

Cash Transactions False Non Profit All of the Above

Reports (CTRs) Counterfeit Organisations
Currency Transactions 4
Reports (CCRs) Report (NTRs)
3

4
 As per Rules of the Prevention of Money Laundering Act, 2002 what does
a “Suspicious Transaction” means –

497

Every Bank is required to maintain the record of all transactions including

the record of all cross border wire transfers, where either the origin or
destination of fund is in India. What is the threshold limit for such
transactions-?
498

Primary responsibility of ensuring implementation of KYC/AML/CFT Policy

and related guidelines is vested with the respective Business
Groups/Circles/SBUs. For this purpose, each Business Group/Circle/SBU
499 will designate an official who would ensure proper implementation and
reporting, as per provisions of this Policy, to the Principal Officer. Such
designated official is called-
Who is the Principal Officer for AML/CFT matters who is responsible
500 for implementation of and compliance with Bank's AML/CFT policy?

To facilitate proper monitoring of transactions by Money Laundering

Reporting Officers (MLRO's), as per reporting structure that has been put
in place, who is designated as Dy MLRO?
501

To facilitate proper monitoring of transactions by Money Laundering

502 Reporting Officers (MLRO's), as per reporting structure that has been put
in place, who is designated as Assistant MLRO-
A transaction A transaction A transaction All of the Above
whether or not whether or not whether or not
made in cash made in cash made in cash
which, to a person which appears to which gives rise
acting in good faith be made in to a reasonable
gives rise to a circumstances of ground of
reasonable ground unusual or suspicion that it
of suspicion that it unjustified may involve 4
may involve the complexity financing of the
proceeds of crime activities relating
to terrorism.

Transactions of the Transactions of Transactions of Transactions of the value

value of more than the value of the value of of more than two lakh
Ten lakh rupees or more than one more than Five rupees or its equivalent in
its equivalent in hunderd lakh lakh rupees or foreign currency
foreign currency rupees or its its equivalent in 3
equivalent in foreign currency
foreign currency

KYC/AML/CFT Money OSD Money Laundering

Officer Laundering KYC/AML/CFT Reporting Officer
Officer (MLRO)
4

GM Network CGM Circle DGM & General Manager

CFO/CCFO at (AML/CFT) at Corporate 4
Circles Centre
Dy. General Assistant Both A and B None of the above.
Manager (Business General are correct
& Operations) for Manager
CPCs & direct (Region) for 3
branches, branches of the
respective
region

Branch Heads Heads of CPCs Both A and B None of the above.

are correct 3
4

3
 Whenever non home/ home branches are putting hold on the account for
suspicious reasons, should they report such cases to AML-CFT deptt?

503

At branches, where 5 or more STRs have been escalated, what is

expected of the Controller-

504

Prudential norms for income recognition, asset classification and

provisioning for the advances portfolio have been introduced by RBI to-
505

The income recognition policy is _________ and is based on the record of

506 interest recovery rather than on any ___________consideration. Which is
right combination of words?
What is the definition of a Non Performing Asset-

507

A Term Loan is categorised as NPA, when

508
No, such incidents Yes, on
are of daily routine simplified one
at branches. page STR,
circulated vide
e-circular No:-
CFO/AML-CFT- 2
MEASURES/
9/2017 -18
dated
20.01.2018.

Branch must be Controllers to Special effort be All of the Above

under focused put such made for creating
attention of the branches in the awareness about
controller category of AML-CFT, KYC
sensitive among the staff of
branches from these sensitive 4
ML/TF angle, branches

Ensure greater Have uniformity Make the Indian Make Banks aware of
consistency and in calculation of Banks weaknesses in their
transparency in profits of Banks competitive with Advances portfolio. 1
banks’ published foreign Banks
accounts.
Objective, Subjective,
Subjective Objective 1

An asset becomes An asset An asset An asset becomes non-

non-performing becomes non- becomes non- performing when it
when it ceases to performing when performing when borrower is not co-
generate income it becomes interest is not operating. 1
difficult of regularly served
recovery. in the account.

Interest and/or Interest remains Instalment of There are multiple

instalment of overdue for a principal remains instances of default in the
principal remain period of more overdue for a account in a quarter.
overdue for a than 90 days. period of more 1
period of more than 90 days.
than 90 days.
2

1
 A CC/OD Account remains ‘out of order’ -

509

In case of bills purchased/discounted the account will turn NPA if-

510

In case of Agriculture segment (Farm Credit) the account will turn NPA if-

511

In case of a securitisation transaction undertaken, it will be treated as NPA

when-
512

In case of derivative transactions the overdue receivables representing

positive mark-to-market value of a derivative contract will be treated as
NPA if-
513
if the outstanding the outstanding The outstanding All of the above.
balance remains balance in the balance in the
continuously in principal principal
excess of the operating operating account
sanctioned account is less is less than the
limit/drawing power than the sanctioned
for a period of 90 sanctioned limit/drawing
days limit/drawing power but credits
power but there in the account are 4
are no credits for not enough to
90 days as on cover the interest
the date of debited during
Balance Sheet the same period.

A bill remains A bill is not paid A bill is not paid A bill is not paid even on
overdue for a on due date. on demand. expiry of usance period.
period of more 1
than 90 days.
The instalment of The instalment A & B both None of the above.
principal or of principal or
interest thereon interest thereon
remains overdue remains overdue
for two crop for one crop 3
seasons for short season for long
duration crops duration crops

The amount of The amount of A & B both are None of the above.
liquidity facility liquidity facility correct
remains remains
outstanding for outstanding for 1
more than 90 days 90 days.

if these remain if these remain if these remain All of the above.

unpaid for a unpaid for a unpaid for a
period of 90 days period of 90 period of 180
from the specified days from the days from the 1
due date for date of date of
payment transaction. transaction
4

1
 As per the Income Recognition Policy, what is true –

514

In case of Advances against Term Deposits, NSCs, IVPs, KVPs and Life
Insurance policies-

515

Fees and commissions earned by the Bank as a result of renegotiations or

rescheduling of outstanding debts should be recognised, over the period
516 of time covered by renegotiated or rescheduled extension of credit-

If any advance, including bills purchased and discounted, becomes NPA-

517

Appropriation of recoveries in NPAs (i.e. towards principal or interest due),

as per the Bank’s extant instructions is done in accordance with following
518 priority-

519 Asset classification is to be done-

In case of loans with Moratorium period for payment of interest, payment
of interest becomes ‘due’-
520
The income Income from Bank shall not All of the above.
recognition policy is NPAs is not charge and take
based on the recognised on to Income
record of recovery. accrual basis but Account interest
is booked only on any NPA 4
when actually without
received. corresponding
recovery.

Interest may be Interest may not Interest may be All statements are true
taken to income be taken to taken to income
account on the due income account account on the
date. on the due date due date,
provided
3
adequate margin
is available in
the accounts.

On accrual basis On actual basis Depends on All of the above.

availability of
security margin. 1

The entire interest The entire The entire The entire interest
accrued and interest interest accrued accrued and credited to
credited to income accrued and and credited to income account in the
account in the past credited to income account past periods, should not
periods, should be income in the past be reversed but it should
reversed. account in the periods, should cease to accrue in the
past periods, not be reversed. current period. 2
should be
reversed if the
same is not
realised.

Charges, Unrealised Principal, Principal, Charges,

Unrealised Interest/Interest, Unrealised Unrealised
Interest/Interest, Charges, Interest/Interest, Interest/Interest 1
Principal Principal Charges
Borrower-wise Facility-wise A & B both None of the above 1
Only after the As and when Both A & B None of the Above.
moratorium or interest is statements are
gestation period applied in the correct. 1
is over. account.
4

1
1

1
 Central Government guaranteed credit facilities may be treated as NPA-

521

State Government guaranteed advances and investments in State

Government guaranteed securities would attract asset classification and
provisioning norms-
522

Which statement is true in respect of provisioning requirement for

Substandard Accounts-

523

The rate of provision on secured portion of Doubtful Asset which has been
524
in Doubtful category up to a period of 1 year is-
The rate of provision on secured portion of Doubtful Asset which has been
525
in Doubtful category from 1 year and up to a period of 3 year is-
The rate of provision on secured portion of Doubtful Asset which has been
526
in Doubtful category for a period of more than 3 year is-
527 The rate of provision on Un-secured portion of Doubtful Asset is-
Only when the The above Both statements Central Government
Government exemption shall A & B are correct guaranteed credit facilities
repudiates its not be available may not be treated as
guarantee when for the purpose NPA at all. 3
invoked. of recognition of
income.

If interest and/or Only when the Both statements State Government

principal or any State A & B are correct guaranteed credit facilities
other amount due Government may not be treated as
to the Bank repudiates its NPA at all 1
remains overdue guarantee when
for more than 90 invoked.
days.

A general provision The ‘unsecured Unsecured All of the above

of 15% on total exposures’ exposure is
outstanding should which are defined as an
be made without identified as exposure where
making any ‘sub-standard’ the realisable
allowance for would attract value of the
ECGC guarantee additional security, as
cover and provision of 10 assessed by the
securities available. %, i.e., a total of bank/approved
25 % on the valuers/Reserve
outstanding Bank’s inspecting 4
balance. officers, is not
more than 10
percent, ab-initio,
of the outstanding
exposure.

0.25 0.4 0.5 1

1
0.25 0.4 0.5 1
2
0.5 0.6 0.75 1
4
0.25 0.5 0.75 1 4
3

4
4
 Loss assets should be written off however If loss assets are permitted to
528 remain in the books for any reason, what percentage of the outstanding
should be provided for-
Banks are required to report credit information, including classification of
529 an account as SMA to CRILC on all their borrowers having aggregate fund
based and non-fund based exposure of-
In case a bank fails to report SMA status of an account to CRILC or resorts
to methods with the intent to conceal the actual status of the account or
530 evergreens the account, it will be subjected to, inter alia,
________________ for that account-
Bank has to make general provision for Standard assets for the funded
outstanding on global loan portfolio basis. In respect of this which
statement is true-

531
 0.25 0.5 0.75 1
4

Rs.10 million and Rs 50 million Rs 75 million and Rs 100 million and above
above and above above 2

Accelerated Special Ad-hoc Penal provisioning

provisioning provisioning provisioning
1

Rate of General Rate of General Rate of General All the above

provision on provision on provision on All statements are true.
Standard assets for Standard assets other loans and
Farm Credit to for Advances to advances not
Agricultural Commercial included in (A) &
activities and Small Real Estate (B) above is 0.40
and Micro (CRE) Sector is %.
Enterprises (SMEs) 1.00% & on
sectors is 0.25 %; Advances to
Commercial 4
Real Estate –
Residential
Housing Sector
(CRE-RH) is
0.75 %;
4

4
 Which statement is true in respect of Floating Provisions?

532

In which of the following events a ‘Wilful Default’ would be deemed to have

occurred –

533
Floating provisions Floating Until utilisation, All of the Above.
cannot be reversed provisions can Floating
by credit to the only be utilised provisions can be
profit and loss for making netted off from
account specific gross NPAs to
provisions in arrive at
extraordinary disclosure of net
circumstances NPAs, or
alternatively, they
can be treated as 4
part of Tier II
capital within the
overall ceiling of
1.25 % of total
risk weighted
assets.

The unit has The unit has The unit has All of the Above.
defaulted in defaulted in defaulted in
meeting its meeting its meeting its
payment/repaymen payment/repaym payment/repayme
t obligations to the ent obligations to nt obligations to
Bank even when it the Bank and the Bank and has
has the capacity to has siphoned off also disposed off
honour the said the funds so that or removed the
obligations. the funds have movable fixed
not been utilised assets or
for the specific immovable
purpose for property given for 4
which finance the purpose of
was availed, nor securing a term
are the funds loan without the
available with knowledge of the
the unit in the Bank
form of other
assets.
4

4
 Following statement is NOT true in case of Identification of Willful
defaulter-

534

RBI guidelines on wilful defaulters and action there against apply without
535 any exception to all loan accounts where the outstandings are-
Once a borrower has been identified as wilful defaulter, can its name be
deleted from the list of wilful defaulters afterwards?
536

No additional facilities would be granted by the Bank to the listed wilful

537
defaulters. Is the statement True or False?
In case any falsification of accounts on the part of the borrowers is
observed by the banks / FIs, and if it is observed that the auditors were
negligent or deficient in conducting the audit, which of the following
statement is TRUE-

538

If name of Promoter Director/Director of a defaulting company appears in

the defaulters’ list and the Promoter Director/Director is having a role in the
day-to-day affairs of its management, then which statement is correct?

539
The identification of Willful default The default to be The identified borrower
wilful default should should not be categorised as must not be given any
be made keeping in decided on the wilful must be opportunity for personal
view the track basis of isolated intentional, hearing before the 4
record of the transactions/inci deliberate and Identification
borrowers dents. calculated. Committee

Rs 2 lac and more Rs 1 lac or more Rs 25 lac or Rs 100 lac or more

more 3
YES NO, once a
defaulter is
always a 1
defaulter.
TRUE
1
Banks can lodge a Pending Both statements Both statements are
formal complaint disciplinary are True. False.
against the auditors action by ICAI,
of the borrowers the complaints
with the Institute of may also be
Chartered forwarded to the
Accountants of RBI (Department
India (ICAI) to of Banking 3
enable the ICAI to Supervision,
examine and fix Central Office)
accountability of and IBA for
the auditors. records.

No ad- In case the Both statements Even in case the

hoc/enhancement/a performance and at A & B are performance and conduct
dditional/ new conduct of the correct. of the accounts of the
credit facilities to be accounts of the applicant company are
sanctioned to the applicant otherwise satisfactory, no
applicant company company are renewal/continuation of
till the name is otherwise the limit even at the
removed from the satisfactory, existing levels must be
defaulters’ list. renewal/continu considered by Bank.
ation of the limit
at the existing
levels may be
considered.
4

3
 If name of Promoter Director/Director of a defaulting company appears in
the defaulters’ list and the Promoter Director/Director is having a role in the
day-to-day affairs of its management, but who resigned from the Board of
defaulting company, to circumvent any obstacle in getting credit, then
which statement is correct?

540

If name of Promoter Director/Director of a defaulting company appears in

the defaulters’ list and the Promoter Director/Director but who is not
541 connected in any way with its day-to-day management, in such case
proposal relating to the applicant company may be considered on merit. Is
this statement True or False?
If name of Nominee/Professional/Honorary director of a defaulting
company (including associate/group/subsidiary Company) appears in the
defaulters’ list then which statement is correct?

542

Credit facilities to units in the wilful defaulter’s list of CICs or Credit

facilities to applicant companies whose directors are in Wilful Defaulter’s
list, No fresh limit enhancement may be sanctioned. However prescribed
543 appropriate authority may approve renewal/continuation of earlier
sanctioned limits. Is this statement True or False.
No ad- In case the Both statements Even in case the
hoc/enhancement/a performance and at A & B are performance and conduct
dditional/ new conduct of the correct. of the accounts of the
credit facilities to be accounts of the applicant company are
sanctioned to the applicant otherwise satisfactory, no
applicant company company are renewal/continuation of
till the name is otherwise the limit even at the
removed from the satisfactory, existing levels must be
defaulters’ list. renewal/continu considered by Bank.
ation of the limit
at the existing
levels may be
considered.

TRUE

No new credit No additional Even in case the Proposal relating to

facilities to be credit facilities to performance and such applicant
sanctioned to the be sanctioned to conduct of the company to be
applicant company the applicant accounts of the considered on usual
till the name is company till the applicant parameters as these
removed from the name is company are directors are on the
defaulters’ list. removed from otherwise Board in their
the defaulters’ satisfactory, no professional/honorary
list. renewal/continuat capacity. 4
ion of the limit
even at the
existing levels
must be
considered by
Bank.

TRUE

1
4

1
 In case of Advocates who wrongly certify as to clear Legal Titles in respect
of Assets or Valuers who overstate the Security Value, by negligence or
connivance, which statement is correct-

544

545 Banking Regulation Act was introduced in

546 Banking Regulation (Amendment) Act was introduced in
What are the provisions of BRA (Amendment) Act, 2017

547

Under which section of Banking Regulation Act 1949 the Banks are Banks
are permitted to set up subsidiaries only for undertaking activities.
548

Banks are not allowed to trade in _________or become members of the

549
________
550 The term banking is defined in which section of B.R.A.1949
551 RBI Act was introduced in
Which section of Banking Regulation Act, 1949 provides that a company
552 intending to carry on banking business must obtain a license from RBI ?

What is a scheduled Bank?

553

Co-operative banks are a).Scheduled banks b).Non Scheduled banks

554
Banks may seek If no Both the Both the statements at A
explanation from reply/satisfactory statements at A & B are not correct.
advocates who clarification is & B are correct.
wrongly certify or received from
Valuers who Advocates/Value
overstate the r within one
Security Value, month, Bank 3
may report their
names to IBA.

1942 1949 1947 1955 2

1952 1955 2017 2018 3
it has provisions for has provisions it has provisions it has provisions for
handling cases for handling for handling handling cases related to
related to standard cases related to cases related to substandard assets.
assets. stressed assets written off 2
or NPAs of accounts
banks.

Under Section 19 Under Section Under Section 6 Under Section 23 of the

of the Banking 22 of the of the Banking Banking Regulation Act.
Regulation Act. Banking Regulation Act 1
Regulation Act.
Commodities Stock Exchange Both of above None of above
3
Sec 5 Sec 6 Sec 6(1) Sec (6)2 1
1934 1939 1945 1951 1
Sec 22 Sec 5 Sec 6 Sec 29
1

A scheduled bank A scheduled A scheduled bank A scheduled bank is a

is a bank that is bank is a bank is a bank that is bank that is listed under
listed under the that is listed listed under the the sixth schedule of the
second schedule under the third fourth schedule of RBI Act, 1934 1
of the RBI Act, schedule of the the RBI Act, 1934
1934 RBI Act, 1934
a b Either of them None of them
3
3
2
3

3
1
1

3
 The objective of establishments of RRB was

555

RRBs are jointly owned by Govt. of India, the concerned State

556
Government and _____
557 Guidelines for licensing of small finance banks were issued by RBI in
Payment Banks licensed under the guidelines issued by RBI in ______
558
The objective of establishment of Payment banks was _______

559

_____________ are the primary financiers of agricultural activities

560
.____________ are a type of Co-operative banks
561

Banks act as ________and as such must be ‘fit and proper’ for the
562
deployment of funds entrusted to them
.____________ requirements make sure that banks do not become too
563
much exposed
___________ frameworks has been introduced with an objective is to
564
adopt more market-oriented regulatory measures
_________Act vests powers in RBI for inspection of books of any banking
565 company at any time
To ensure sufficient To ensure To ensure To ensure sufficient
institutional credit sufficient sufficient institutional credit for
for Manufacturing & institutional institutional corporates
Trading sectors credit for SME credit for 3
and other agriculture and
sectors other rural
sectors

Private equity Sponsor Banks Cooperative None

2
banks
2013 2014 2015 2016 2
2014 2015 2016 2017
1
Furthering financial Payments/remitt Both A & B None of them
inclusion by ance services, to
providing Small migrant labour
savings accounts workforce, low
income
households,smal
l businesses, 3
other
unorganized
sector entities
and users

Cooperative RRBs Commercial Private Banks

1
banks Banks
Regional rural Land Credit & thrift Small finance banks
banks Development societies 2
Banks
Trustee Bailee Agent banker
1
Capital adequacy SLR Both None of them
1
Basel 1 Basel 2 Basel 3 None
2
Sec 35 of the Sec 22 of the Sec 06 of the RBI Sec 23 of the Banking
Banking Banking Act Regulation Act 1
Regulation Act Regulation Act
3

2
2

1
 The ___________, after consultation with RBI may acquire or amalgamate
or reconstitute a banking company, which is being managed in a manner
566 detrimental to the interest of its depositors or which has failed to comply
with directions issued by RBI under the Banking Regulation Act.

______________ of the RBI Act provides for operational independence to

RBI while at the same time reserving the Central Government’s right to
567 issue directions to RBI from time to time in public interest

The management of RBI rests with the ____________

568
The RBI is headed by the Governor who is appointed by the ______for a
569
term not exceeding ______
Investment by banks in a financial services company requires prior
570 approval of RBI and is subject to a ceiling of _____ of the bank’s paid-up
capital and reserves
THE RIGHT TO INFORMATION ACT, 2005 was enacted to-

571

“Public authority” as per The RTI Act 2005 includes any authority or body
or institution of self- government established or constituted-
572

As per The RTI Act 2005 - “Record” includes-

573
State Government Central SBI IDBI
Government
2

Section 5 Section 6 Section 7 Section 22

3

Central Board of Central Govt Governor of RBI Ministry of Finance

1
Directors
Central Govt. 02 Central Govt. Central Govt. Central Govt. 06 years
3
years 03 years 05 years
0.05 0.1 0.2 0.25
2

Provide for setting Order to initiate Promote All of the above.

out the practical legal transparency and
regime of right to proceedings accountability in
information for against the the working of 4
citizens. CPIO/SPIO, every public
authority.

by or under the by any other law by notification All of the above.

Constitution; made by issued or order
Parliament or made by the 4
State appropriate
Legislature; Government,
Any document, Any microfilm, Any reproduction All of the above.
manuscript and file; microfiche and of image or
facsimile copy of images embodied
a document;. in such microfilm
(whether
enlarged or not);
and any other
material 4
produced by a
computer or any
other device:
2

4
 "Right to information" means the ‘Right to Information’ accessible under
RTI Act which is held by or under the control of any Public Authority (PA)
and includes the right to—

574

Which statement is true in respect of "Information" as defined in as per RTI

Act -

575

Who can Seek information under RTI Act,2015-

576
Inspection of work, Taking notes, Obtaining All of the above
documents, extracts or information in the statements are Correct.
records; certified copies form of diskettes,
of documents/ floppies, tapes,
records, certified video cassettes
samples of or in any other
material electronic mode
or through
printouts where 4
such information
is stored in a
computer or in
any other device;

Information means Information also A & B both are None of the above.
any material in any includes correct
form, including information
records, relating to any
documents, private body
memos, e-mails, which can be
opinions, advices, accessed by a
press releases, public authority
circulars, orders, under any other
logbooks, law for the time
3
contracts, reports, being in force;
papers, samples,
models, data
material held in any
electronic form;

Indian Citizens Indian Citizens Indian Citizens as Indian Citizens, Foreign

only. as well as well as Non- nationals as well as Non-
foreign individuals like individuals like
nationals. Corporations, Corporations,
Associations, and Associations, and 1
Companies Companies incorporated
incorporated in in India
India.
4

1
 As per section 4 (1) of RTI Act every Public Authority (PA) shall -

577

As per section 6 of RTI Act, which statement is true?

578

As per RTI Act the request to obtain any information is to be made,

accompanying such fee as may be prescribed, to -

579

As per section 7 (1) of RTI Act, the Central Public Information Officer or
State Public Information Officer, as the case may be, on receipt of a
580 request to provide information shall, either provide the information on
payment of such fee as may be prescribed or reject the request, as
expeditiously as possible, and in any case within –
Maintain all its Ensure that all Ensure that the All of the above
records duly records that are computerised
catalogued and appropriate to be records are
indexed in a computerised, available on
manner and the within a different systems
form which reasonable time connected
facilitates the right and subject to through a network
to information availability of all over the 4
under this Act resources, are country so that
computerised access to such
records is
facilitated;

A person, who A person, who A person, who All of the above

desires to obtain desires to obtain desires to obtain
any information any information any information
under this Act, shall under this Act, under this Act,
make a request in can also make a can make request
writing; request through in English or
electronic Hindi or in the
means; official language 4
of the area in
which the
application is
being made;

The Central Public The State Public The Central All of the above.
Information Officer Information Assistant Public
(CPIO) of the Officer (SPIO) of Information
concerned public the concerned Officer (CAPIO)
Authority public Authority or State Assistant
Public Information 4
Officer(SAPIO),
as the case may
be,

30 days of the 30 days of the 30 days of the None of the above.

receipt of the date of the despatch of the
request. request. request. 1
4

1
 As per section 7 (1) of RTI Act, the Central Public Information Officer or
State Public Information Officer, as the case may be, on receipt of a
581 request to provide information, and where the information sought for,
concerns the life or liberty of a person, shall provide the information within
–
Where a decision is taken to provide the information on payment of any
further fee representing the cost of providing the information, the Central
Public Information Officer or State Public Information Officer, as the case
582 may be, sends intimation to the person making the request, giving the
details of further fees, the period intervening between the despatch of the
said intimation and payment of fees—
If a person, who desires to obtain any information under this Act, is of BPL,
the concession in fee will be as under-
583

Where a request for providing information, under RTI Act, has been
rejected, the Central Public Information Officer or State Public Information
Officer, as the case may be, shall communicate to the person making the
request—-

584

As per RTI Act if a person who, does not receive a decision within the time
specified or is aggrieved by a decision of the CPIO or SPIO, as the case
may be, may prefer an appeal to such officer who is senior in rank to the
585 CPIO or SPIO as the case may be, in respective public authority, within

A second appeal against the decision under RTI ACT shall lie-

586
Within 24 hours of Within 48 hours Within 30 days of None of the above.
the receipt of the of the receipt of the receipt of the
request the request. request. 2

Shall be excluded Shall not be Depends on None of the above.

for the purpose of excluded for the discretion of
calculating the purpose of CPIO or SPIO.
period of thirty calculating the 1
days period of thirty
days
25% concession in 50 % concession 100 % No concession in
prescribed fees in prescribed concession i.e. prescribed fees.
fees No fees to be 3
charged.
The reasons for The reasons for The reasons for No need to communicate
such rejection, such rejection such rejection any reason for rejection.
and the period and the period
within which an within which an
appeal against appeal against
such rejection such rejection
may be may be 3
preferred, preferred, along
with, the
particulars of
the appellate
authority.

30 days from the 30 days from the 30 days from the None of the above
expiry of such receipt of such a expiry of such
period decision period or from
the receipt of 3
such a decision.

Within 90 days Within 90 days Within 90 days None of the Above.

from the date on from the date on from the date on
which the decision which the which the
should have been decision was decision should
made. actually have been made 3
received. or was actually
received.
2

3
 A second appeal against the decision under RTI ACT shall be made with -

587

In any appeal proceedings under RTI ACT, the onus to prove that a denial
of a request was justified shall be on the -

588

As per the RTI Act, the decision of the Central Information Commission or
589 State Information Commission, as the case may be, shall be binding on-

In its decision, the Central Information Commission or State Information

Commission, as the case may be, under RTI Act, has the power to -

590

As per section 20 (1) of RTI Act, The Central Information Commission or

the State Information Commission, as the case may be, at the time of
deciding any complaint or appeal is of the opinion that the CPIO or the
SPIO, as the case may be, has, without any reasonable cause, refused to
receive an application for information or has not furnished information
591 within the time specified or malafidely denied the request for information or
knowingly given incorrect, incomplete or misleading information or
destroyed information which was the subject of the request or obstructed
in any manner in furnishing the information, it can impose a penalty of -
An officer who is An officer who is Head of the Central Information
senior in rank to the senior in rank to Public Authority Commission or the
CPIO or SPIO. the Fist State Information 4
Appellate Commission.
Authority.
Central Public First Appellate Both statements None of the above
Information Authority who A & B are correct
Officer or State upheld the
Public Information decision of
Officer, as the CPIO/SPIO. 1
case may be, who
denied the
request

The Appellant; The Public A & B both None of the above

Authority; 3

Require the public Require the Reject the All of the above
authority to take public authority application
any such steps as to compensate
may be necessary the complainant
to secure for any loss or
compliance with the other detriment
provisions of this suffered and 4
Act impose any of
the penalties
provided under
this Act;

Rs Two hundered Rs Two Rs Twenty-five Rs Two hundered fifty

fifty as a token hundered fifty thousand in lump each day till application
amount each day till sum is received or
application is information is
received or furnished, however, the
information is total amount not to 4
furnished exceed twenty-five
thousand rupees
4

4
 As per section 20 (2) of RTI Act The Central Information Commission or
the State Information Commission, as the case may be, at the time of
deciding any complaint or appeal is of the opinion that the CPIO or the
SPIO, as the case may be, has, without any reasonable cause, refused to
receive an application for information or has not furnished information
592 within the time specified or malafidely denied the request for information or
knowingly given incorrect, incomplete or misleading information or
destroyed information which was the subject of the request or obstructed
in any manner in furnishing the information, it can-

No suit, prosecution or other legal proceeding shall lie against any person
for anything which is in good faith done or intended to be done under RTI
593 Act or any rule made thereunder. Is this statement true?

Can a suit, application or other proceeding in respect of any order made

under RTI Act be initiated in any court of law?
594

If the appellant or Public Authority is not satisfied with the order passed
under the RTI Act, what remedy it has got against such order

595

With enactment of RTI Act 2005 which Act was repealed

596

Where an application for information or appeal is given to a Central

Assistant Public Information Officer (CAPIO) or a State Assistant
597 Public Information Officer (SAPIO), as the case may be, a period of
________ shall be added in computing the period for response specified in
the Act-
Order prosecution Order to initiate Recommend for None of the above.
of the CPIO/SPIO, legal disciplinary
proceedings action against
against the the CPIO or the
CPIO/SPIO, SPIO, as the
case may be, 3
under the
service rules
applicable to
him

TRUE 1

Yes, but only High Yes, but only It depends upon No court shall entertain 4
court has the Supreme court case to case any suit, application or
jurisdiction has the basis. other proceeding in
jurisdiction respect of any order
made under this Act.
Aggrieved party Aggrieved party No such order None of the above 3
can file an appeal can file an can be called in
in High court. appeal in question
Supreme court otherwise than
by way of an
appeal under
this Act.

The Freedom of Official Secrets The Indian All of the above. 1

Information Act, Act, 1923 Evidence Act
2002 1872,
3 DAYS 5 DAYS 7 DAYS 30 DAYS 2
3

2
 Where an application is made to a public authority requesting for
information which is held by another public authority; or the subject matter
of which is more closely connected with the functions of another public
authority-

598

Where an application is made to a public authority requesting for an

information which is held by another public authority; or the subject matter
of which is more closely connected with the functions of another public
599 authority, the PA shall transfer the application or such part of it as may be
appropriate to that other Public Authority –

If the CPIO or SPIO, as the case may be, fails to give decision on the
request for information within the period specified-
600

In case where access to the record or a part thereof is required to be

provided under this Act and the person to whom access is to be provided
is sensorily disabled-

601
The PA will reject The PA will The PA shall None of the Above. 3
the application. advise the transfer the
applicant to send application or
the request to such part of it as
concerned may be
authority. appropriate to
that other Public
Authority and
inform the
Applicant
immediately
about such
transfer:

3 DAYS from the 7 DAYS from the As soon as 30 DAYS from the date of 3
date of receipt of date of decision practicable but receipt of the application.
the application to transfer the in no case later
application than five days
from the date of
receipt of the
application

The application will The applicant CPIO/SPIO shall No effect on the status of 3
expire in 30 days will have to be deemed to request
apply again. have refused the
request.

Applicant may bring Applicant may The CPIO or None of the Above 3
his/her friend or bring his/her SPIO, as the
relative with authorised case may be,
him/her for representative shall provide
assistance. with him/her for assistance to
assistance enable access to
the information,
including
providing such
assistance as
may be
appropriate for
the inspection.
3

3
 Which of the following information is exempted from disclosure as per RTI
Act?

602

How much foreign exchange can be brought in while visiting India? Which
of the following is correct?

638
Information, Information Information, the All of the above 4
disclosure of which which has been disclosure of
would prejudicially expressly which would
affect the forbidden to be cause a breach of
sovereignty and published by any privilege of
integrity of India, court of law or Parliament or the
the security, tribunal or the State Legislature;
strategic, scientific disclosure of
or economic which may
interests of the constitute
State, relation with contempt of
foreign State or court.
lead to incitement
of an offence;

A person coming However, if the The value of All of the above 4

into India from aggregate value foreign currency
abroad can bring of the foreign alone exceeds
with him foreign exchange in the USD 5,000 or its
exchange without form of currency equivalent, it
any limit. notes, bank should be
notes or declared to the
travellers Customs
cheques brought Authorities at the
in exceeds USD Airport in the
10,000 or its Currency
equivalent. it Declaration Form
should be (CDF), on arrival
declared to the in India.
Customs
Authorities at the
Airport in the
Currency
Declaration
Form (CDF), on
arrival in India.
4

4
 How much Indian currency can be brought in while coming into
India? Which of the following statement is not correct?

639

Prohibited transactions have been indicated in Schedule …………. of

640
FEMA
The release of foreign exchange up to the threshold ceilings
641 specified in Schedule ……………………. stands delegated to the
Authorized Dealer banks.
By whom approval AD Category-I banks may permit drawl of
foreign exchange by persons for payment of royalty and lump-
sum payment under technical collaboration agreements
642
A resident of India, A person may Any person Any person resident in India 3
who has gone out bring into India resident outside who had gone to Pakistan
of India on a from Nepal or India, not being and/or Bangladesh on a
temporary visit may Bhutan, currency a citizen of temporary visit, may bring
bring into India at notes of Pakistan and into India at the time of his
return, currency notes of
the time of his Government of Bangladesh and Government of India and
return from any India and also not a Reserve Bank of India notes
place outside India Reserve Bank of traveller coming up to an amount not
(other than Nepal India notes, in from and going exceeding Rs. 10,000 per
and Bhutan), denomination to Pakistan and person
currency notes of not exceeding Bangladesh, and
Government of Rs.100. visiting India
India and Reserve may bring into
Bank of India notes India currency
up to an amount notes of
not exceeding Government of
Rs.25,000. India and
Reserve Bank of
India notes up to
an amount not
exceeding Rs.
10,000 while
entering only
through an
airport.

Schedule I Schedule II Schedule III Schedule IV 1

Schedule I Schedule II Schedule III Schedule IV 3

With the approval Without the Without the With the approval of 1
of Ministry of approval of approval of Ministry of Finance,
Commerce and Ministry of Reserve Bank of Government of India
Industry, Commerce and India
Government of Industry,
India Government of
India
3

1
 Which is true in connection with Sale of overseas telephone
cards?

643

Drawl of foreign exchange by any person for the following

purpose is not prohibited.
644

How much foreign coins can be surrendered to an Authorised Dealer on

return from abroad?
645

For payments other than imports and remittances covering intermediary trade
transactions, applicant needs to fill up ……………….and the form should be
retained by the Authorised Dealer for a period of…………
646

In the case of a Public Sector Company or a Department/

Undertaking of the Government of India/ State Governments,
647 approval from .........................................for issue of guarantee for
an amount exceeding USD 100,000 (USD One hundred thousand)
or its equivalent would be required.
Authorised Prior approval of Prior Approval of b & c is correct 1
Dealers may allow RBI required Ministry of
agents in India of Telecom is
the overseas required.
organisations
issuing pre-paid
telephone cards
to remit the sale
proceeds of such
cards to the
issuers of the
telephone cards.

a transaction a transaction a transaction with a transaction with a 4

specified in the with a person a person resident person resident in
Schedule I; or resident in Nepal in Nepal or Pakistan
or Bhutan. Bhutan

The residents can The residents The residents The residents can hold 3
hold foreign coins can hold foreign can hold foreign foreign coins up to a
up to a maximum coins up to a coins without maximum Limit of
Limit of USD 2000 maximum Limit any limit. equivalent of INR
of USD 1000 25,000.00

Form A1, one year Form A2, one Form A3, three No such form required 2
year years only declaration under
FEMA is required, five
years from the date of
transaction.
the Ministry of The Ministry of The Ministry of Reserve Bank of India 2
External affairs, Finance, Commerce &
Government of Government of Industries ,
India India Government of
India
1

2
 Which of the following is true in connection with definition of
Person resident of India in Section 2(v) of FEMA, 1999

648

Authorised dealers may allow cable operators or collection

agents in India of overseas TV media companies, to remit
subscription collected from subscribers in India/advertisement
charges collected from the advertisers who are eligible to
649 advertise on overseas TV channels

Which of the following Transactions require prior approval of the

Central Government?

650
Person who has A person A person who has All of the above is correct 2
gone out of India or residing in gone out of India
who stays outside India for more or who stays
India, for or on than one outside India, for
taking up hundred and carrying on
employment eighty-two days outside India a
outside India during the business or
course of the vocation outside
preceding India
financial year

With the prior Without any With the prior with the prior permission 2
permission from the prior permission from from the Ministry of
Reserve Bank. permission the Ministry of Finance
from the Information and
Reserve Bank. Broadcasting
Ministry of
Communication
and

Advertisement in Payment of Remittance of Remittances by persons 4

foreign print media import through prize other than individuals
for the purposes ocean transport money/sponsorsh upto USD 1,000,000 per
other than by a Govt. ip of sports project, for other
promotion of Department or a activity abroad by consultancy services
tourism, foreign PSU on c.i.f. a person other procured from outside
investments and basis (i.e. other than India.
international than f.o.b. and International /
bidding (exceeding f.a.s. basis) National / State
USD 10,000) by a Level sports
State Government bodies, if the
and its Public amount involved
Sector exceeds USD
Undertakings 100,000.
2

4
 Which is correct about the Nodal officer for grievance redressal at Local
Head Offices

651

What is correct about the SBI - Customer Rights Policy?

652

The Branch shall make efforts to ensure that the redressal of the complaint
653 takes place expeditiously and in any case within a maximum period

A customer gives a written complaint to the branch. Branch should

654
There will be an He shall bring The Network All of the above 4
Assistant General the deficiencies Nodal Officer
Manager if any, to the shall also ensure
(Customer Service) attention of the implementation of
at each LHO for Chief General policies and
coordinating with all Manager (LHO) instruction of
the networks and for rectification BCSBI relating to
Corporate Centre the Bank’s Code
of Commitments
to customers

The Customer The customer The customer has All are true 4
Rights Policy has the Right to the Right to
enshrines basic fair treatment Suitability, Right
rights of the Right to to Privacy, Right
customers of the Transparency, to Grievance
Bank regulated by Fair and Honest Redressal and
RBI & spells out the Dealing Compensation
rights of the
customer and the
Bank

T plus 1 Fifteen working Three weeks One month 3

days

Branch should Branch must Complaint All are correct 2

resolve the issue enter in entered in
then & there and complaint book complaint book at
there is no need to & also enter in branch & make
enter in complaint CMS. Matter efforts to ensure
book should that the redressal
resolved of the complaint
expeditiously takes place
expeditiously.
These type of
complaints need
not to be entered
in CMS.
4

2
 Who is the Chief Nodal Officer at SBI, Corporate Centre, Mumbai for
customer grievances redressal

655

Which of the following statement is not correct?

656

Which is not correct in connection with allotment of lockers?

657
Chief General General Deputy General Chief General Manager 2
Manager Manager Manager (Customer Service)
(Customer Service (Customer (Customer
and Operations) Service) Service)
Customer Customer Service
Service Department
Department

Branches should Branches Branches should Branches should not 2

accept & exchange should not refuse to accept accept Notes bearing
a Soiled Note / refuse to Notes bearing slogans / political
mutilated / accept "PAY"/"PAID" messages, etc. &
defective notes extremely "REJECT" Deliberately cut notes
brittle & stuck stamps
up Notes

The locker shall be To ensure Branch should A safe deposit locker 4

provided on first- prompt payment maintain a wait can be allotted to minor
come-first-served of locker rent, list for the jointly with others
basis Branch should purpose of
obtain a Special allotment of
Term Deposit lockers and
from new hirers ensure
that would cover transparency in
3 years rent and allotment of
the charges for lockers
breaking open
the locker in
case of an
eventuality
2

4
 Which is not correct in connection with Operations of Safe Deposit
Lockers?

658

What is not correct about FAIR LENDING PRACTICES CODE (FLPC for
short)?

659

What are not objective & scope of State Bank of India Compensation
Policy (Banking Services)?

660
For the unrented or The officer in Access to the All of the above 1
surrendered charge should hirer's agent or
lockers, both the check the locker attorney can be
keys (custodian key room allowed against a
and hirers’ key) immediately power of attorney
should be held in after the locker duly executed
System Manger’s hirer has used it before the Notary
custody to ensure that public / Executive
hirer has not left Magistrate in
any valuable favour of the
belongings latter
outside locker
inadvertently

FLPC contains FLPC is a FLPC would be It aims to provide valuable 2

eight important mandatory applicable in the inputs to Customers and
declarations from code adopted Bank from the facilitates effective
us, the spirit of by our Bank, date it is placed in interaction of customers
which pervades the which aims to the Bank's with the Bank
entire FLPC achieve website or is
provisions synchronizatio otherwise
n of best publicized
practices while through the
dealing with media
Customers in
India

To establish a The Policy will The Policy is Grant of compensation 2

system whereby be applicable to based on under this Policy is
the Bank select banking principles of without prejudice to the
compensates the services to transparency and Bank's rights in defending
customer due to customers of fairness in the its position before any
deficiency in the Bank treatment of Court of Law or Tribunal
service of the Bank customers
1

2
 What is correct about Reputation Risk?

661

Customer Rights Policy covers the following

662

Bank's Cheque Collection Policy -2015 covers

663

As per the matrix for customer complaints which of the following statement
is correct in connection with the maximum days available with branch,
664 LHO & Corporate Centre for redressal

As per the matrix for customer complaints in connection with maximum

665
days available with branch for redressal.
As per the matrix for customer complaints in connection with maximum
666
days available with Corporate Centre for redressal.
As per the matrix for customer complaints in connection with maximum
667
days available with LHO Centre for redressal
The Bank has put It is applicable . To establish an This is nothing to do with 2
in place a to all types of effective process the “Core Principles for
Reputation Risk branches only. for managing Effective Banking
Management reputation risk Supervision” issued by
Manual to establish commensurate the Basel Committee.
a Standard with the size and
Operating complexity of the
Procedure for Bank’s
proper, timely and operations.
consistent
reporting, analysis
and monitoring of
the reputation risk
events.

basic rights of the Right to fair Statement ‘a’ is Statement a & b are 4
customers, Fair treatment, Right correct. correct
and Honest to Suitability,
Dealing, Right to Right to Privacy,
Grievance Right to
Redressal and Transparency
Compensation.

Established Collection of Reduced time All of the above 4

procedure for cheques from frame for
collection of Bank's our branches collection of
own cheques (local and branches outstation/local
and outstation). of other banks. cheques drawn
on branches of
the Bank

Branch 5 days, Branch 6 days, Branch 10 days, Branch 10 days, LHO 5 4

LHO 6 days & LHO 10 days & LHO 6 days & days & Corporate
Corporate Centre Corporate Corporate Centre Centre 6 days
10 days Centre 5 days 8 days
6 7 10 53

67 10 5 1

6 7 10 5 4
2

4
 In case the locker was hired jointly with the instructions to operate it under
joint signatures and the locker hirers nominate one or more person(s) as
668 nominee(s), in the event of death of any of the locker hirers, the branch
should give access of the locker and the liberty to remove the contents
to………
What are the contents of customer’s Right to suitability?

669

Which statement is true in connection with customer’s right to privacy?

670

Which statement is not true in connection with customer’s Right to

Transparency, Fair and Honest Dealing

671

Who appoints the Banking Ombudsman?

672
Nominee/ Jointly to the Both statements Both statements are 2
Nominees survivor(s) and are true incorrect.
the nominee(s)

The products It should be a & b both are a & b both are correct 4
offered should be based on an incorrect
appropriate to the assessment of
needs of the the customer’s
customer financial
circumstances
and
understanding.

Customers’ Customers’ Customers have All the statements are 4

personal personal the right to true
information should information protection from all
be kept confidential should be kept kinds of
unless they have confidential communications,
offered specific unless such electronic or
consent to the information is otherwise, which
financial services required to be infringe upon
provider provided under their privacy.
the law

The financial The product’s The customer The financial services 3

services provider price, the should not be provider cannot threaten
should make every associated risks, subject to fair the customer with
effort to ensure that the terms and business or physical harm, exert
the contracts or conditions that marketing undue influence, or
agreements it govern use over practices, engage in blatant
frames are the product’s life coercive harassment.
transparent, easily cycle and the contractual
understood by, and responsibilities terms or
well communicated of the customer misleading
to the common and financial representations
person. service provider,
should be clearly
disclosed.

Ministry of Finance, IBA RBI SEBI 3

GOI
2

3
 A complaint on anyone of the following grounds alleging deficiency in
banking or other services may be filed with the Banking Ombudsman
having jurisdiction. Which is incorrect?
673

Are the following the genuine ground for filing a complaint with banking
Ombudsman?

674

Are the following the genuine ground for filing a complaint with banking
Ombudsman?

675
 Non-payment or Non- Non- Non-acceptance, 3
inordinate delay acceptance, sanctioning of a without sufficient
in payment or without credit facility cause, of coins
collection of sufficient tendered and for
cheques , drafts, cause, of small charging of
bills etc.; denomination commission in respect
notes thereof;
tendered
Non-payment or Non-acceptance, Non-acceptance, All of the above are 4
inordinate delay in without sufficient without sufficient genuine ground for
payment or cause, of small cause, of coins filing a complaint with
collection of denomination tendered and for the ombudsman
cheques , drafts, notes tendered charging of
bills etc commission in
respect thereof

Delays, non-credit Delays in receipt Non Refusal to open deposit 3

of proceeds to of export discounting/ accounts without any
parties' accounts, proceeds, non negotiating valid reason for refusal;
non-payment of handling of the bill. and Levying of charges
deposit or non- export bills, without adequate prior
observance of RBI collection of bills notice to the customer
directives, if any, for exporters
applicable to rate of provided the
interest on deposits said complaints
in any savings, pertain to the
current or other bank's
account maintained operations in
with a bank India
3

4
 What is correct about Agreement between RBI and commercial banks in
connection with accepting coins by the banks?

676

The Bank has put in place a Reputation Risk Management Manual. Which
of the following is the objective of the manuals

677

Reputation Risk Management Manual is not applicable to

678

679 Bank’s Mission 110% pertains to

Disposal of locker In case of death of a sole locker hirer (where there is no
nomination). Which statement is true?

680
The bank branches They should They should use All are true 4
should accept coins accept coins [all Coin counting
in exchange of denominations] machines or
notes. which are legal accept coins by
tender under the weight for large
Indian Coinage receipts, as
Act, from any hitherto to
member of facilitate the
public without customers
restriction and
pay the value in
notes

To establish a To establish an a.    This is All of the above 4

Standard Operating effective process consistent with
Procedure for for managing the revised “Core
proper, timely and reputation risk Principles for
consistent commensurate Effective Banking
reporting, analysis with the size and Supervision”
and monitoring of complexity of the issued by the
the reputation risk Bank’s Basel Committee
events operations

All types of Global Non-banking Not applicable to b 4

domestic and Markets for Subsidiaries and c
Foreign Branches / Treasury
Offices / operations
Subsidiaries
SME Home Loans SBI Life Customer service 4
If there is a valid In other cases, In such cases All are correct 4
will, probate may access may be death certificate
be obtained and given to the legal and proof of the
access may be representative of legal
given to the the deceased. representation
executor/adminis should be
trator. obtained
4

4
4

4
 Where there are joint locker hirers and as per the contract of locker hire,
the locker is to be operated jointly and there is no nomination, if one of the
hirers dies. Which statement is true?

681

What is correct about SBI Samadhan?

682

If the matter has been lodged with the Banking Ombudsman

what is incorrect regarding the time limit prescribed for CCC
department at LHO for taking action.

683
Access may be In such cases, Both are Both are correct 4
given to the death certificate incorrect
survivor jointly with and proof of the
the legal heirs of legal
the deceased hirer representation
should be
obtained

Customer can Customer can FAQs including All of the above are 4
generate Housing register their relevant videos correct
Loan & Education complaint for deposit,
Loan interest through this app Advances, ATM,
certificate, which and can track Internet banking,
will be sent to their the status of Mobile banking &
e mail ID registered resolution of Mobile wallet are
with the bank these complaints available for
as well. customer
convenience &
imparting
knowledge

Study the issues Forward Downloading Study the issues 1

raised by complaints to the the complaints raised by complainant
complainant in the home branch of from RBI site – in the light of relevant
light of relevant the complainant on going basis internal guidelines on
internal guidelines indicating products and services,
on products and deficient areas standards of delivery/
services, along with customers’ right and
standards of relevant obligations enshrined
delivery/ headings and in RBI’s master circular
customers’ right clauses of RBI on customer service
and obligations master circular & and code evolved by
enshrined in RBI’s BCSBI code to BCSBI to zero on the
master circular on facilitate easy
deficiencies. 2 days.
customer service understanding of
and code evolved the issue at the
by BCSBI to zero Branch 3 days
on the
deficiencies. 3
days
4

1
 Banking Codes & Standard Board of India. Which is not correct regarding
BCSBI?

684

What is not correct about recovering the locker rent?

685

Cheque Truncation System (CTS) is presently not working at the

686
following centre
What is not correct about Right to Grievance Redressal and
Compensation

687

All Branches shall form a Customer Service Committee with

representation of officers, award staff and subordinate staff as well as
688 customers. What is the periodicity this Meeting?
This is a code of The code does BCSBI is It also talks about bank’s 3
Customer Right, not supersede or mandatory code key commitment to the
which sets replace each bank has customer
minimum standard regulatory or to comply
of banking practice supervisory
we will follow as a instructions of
member of BCSBI RBI

Locker Rent is Locker Rent If rent is not To ensure prompt 2

recovered from is recovered recovered then a payment of locker rent,
customer’s from suitable notice Branch should obtain a
account in customer’s should be sent to Special Term Deposit
advance every account the hirer hirers from new hirers that
year. every year would cover 3 years rent
on first April. and the charges for
breaking open the locker
in case of an eventuality

Northern grid Eastern Grid Western grid in Southern Grid in 2

in Delhi in Kolkata Mumbai Chennai
The customer has The provider The financial The policy must lay out 4
a right to hold the should also services provider the only rights of the
financial services facilitate must customer when such
provider redressal of communicate its events occur.
accountable for the grievances policy for
products offered stemming from compensating
and to have a clear its sale of third mistakes, lapses
and easy way to party products in conduct, as
have any valid well as non-
grievance performance or
redressed delays in
performance,
whether caused
by the provider or
otherwise

Every month Every quarter Every month in Quarterly in small 1

Big Branches branches up to
incumbency incumbency scale III
above scale III.
3

1
 Customers’ Day’ shall be observed on of every month. Top
functionaries at Administrative Offices and Branch Managers
689 shall make themselves available for a minimum of two hours
(2.30 pm to 4.30 pm) on the
An account that a bank holds in a foreign currency in another bank is known as
690
An account in Local currency account maintained by a local bank for a foreign
691 (correspondent) bank is known as
Through which account Cross-border inward remittances may also be
692
received under Rupee Drawing Arrangements (RDAs)?
What is correct about Speed Remittance Procedure?

693

What is not correct about Rupee Drawing Arrangement?

694
15th of every month 15th & 25th of 25th of every 20th of every month 2
every month. month

LORO Account NOSTRO VOSTRO Speed Remittance 2

Account Account Account
LORO Account NOSTRO VOSTRO Speed Remittance 3
Account Account Account
NOSTRO Account LORO Account VOSTRO None of the above 3
Account
AD Category-I The Exchange . Ordinarily, the All the above are 4
banks are House sends Exchange House correct
permitted to enter payment should fund the
into RDA under instructions with Rupee account
speed remittance complete details through the
procedure. like name, nostro account of
address, etc., via the AD Category-I
SWIFT or bank in advance
internet. before issuing
payment
instructions.

The requirement of . Banks may Cross-border Cross-border inward 3

registration of the enter into foreign inward remittances may also be
Agreement currency remittances may received under RDAs
between the AD drawing also be received through the Rupee Vostro
Category-I banks arrangements under RDAs Account of Exchange
and Exchange under DDA or through the Houses.
Houses under the Non-DDA Rupee Nostro
Rupee Drawing procedure with Account of
Arrangement/ those Exchange Exchange
Foreign Currency Houses with Houses.
Drawing whom they have
Arrangement is Rupee Drawing
optional. Arrangements
(RDAs), with
prior approval of
the Reserve
Bank,
2

3
 What is not correct regarding operations in the Rupee vostro accounts?

695

What is correct regarding operations in the Rupee vostro accounts?

696

What are the instructions regarding maintaining & operation of Rupee

vostro accounts? Which of the following is not correct?

697
The accounts can The remitter and Remittances The accounts can be 4
be used for the beneficiary through used for cross-border
channeling cross- should be Exchange outward remittances
border inward individuals Houses for from India.
remittances into barring a few financing of trade
India primarily on exceptions transactions are
private account. permitted up to
Rs.15,00,000
(Rupees fifteen
lakhs only) per
transaction.

The accounts No overdraft In case of All of the above are 4

should run on a should be Designated correct
credit basis. granted to the Depository
account holders. Agency (DDA)
procedure, the
funds lying in the
DDA A/c may be
taken into
account, if need
be.

Banks shall adopt Separate Rupee The accounts Rupee funds transferred 3
value dating where vostro account cannot be from another AD
on-line debit to shall be funded by sale Category-I bank or from
Rupee vostro maintained for of permitted another vostro account
account is not each foreign currency will not be eligible for
possible on a real arrangement. to the AD credit to the account
time basis. Category-I bank,
which maintains
the account.
4

3
 What are the instructions regarding maintaining & operation of Rupee
vostro accounts? Which of the following is correct regarding Inward
Remittances through these accounts?

698

What is correct about Designated Depository Agency (DDA) Procedure?

699
Debits of permitted These payments In order to All the above are 4
types of inward will be eligible facilitate tourists, correct
remittances may be for credit to Non- receiving
allowed freely and Resident remittances
given the same (External) Rupee through such
status as Accounts accounts to prove
remittances made maintained by the external
in foreign exchange Non-Resident sources of the
in an approved Indians funds wherever
manner to India required (such as
for payment of
passages in India
or for re-
conversion of
unutilised
balances

The Exchange DDA account in The Exchange All are correct 4

House will be a convertible House will, at the
required to open a foreign currency end of each day,
bank account in a can also be arrive at the total
convertible foreign opened with the drawings in
currency (known as drawee bank Indian Rupees for
DDA account) in itself at the the day and will
the name of the branch where convert the same
drawee bank (a/c - the into foreign
Exchange House) corresponding currency which
with an Rupee vostro shall be
international bank account is deposited into the
acceptable to the maintained, with account of the
drawee bank at a the prior drawer bank (a/c-
centre mutually approval of the Exchange
agreed upon Reserve Bank House).
4

4
 What is not correct about Designated Depository Agency (DDA)
Procedure?

700

Which of the following statement is correct regarding debits allowed from

the DDA account is?

701

What is correct about Exchange House & drawee bank under Designated
Depository Agency (DDA) Procedure?

702
Exchange House The funds will be The remuneration So long as the 4
will send to the held in the DDA payable to the Exchange House
drawer bank account under auditors will be complies with the
information about lien to the borne by the guidelines, the drawee
the total number drawee bank drawer banks bank will ensure that
and the aggregate the drafts issued are
value of drafts honoured at the
drawn and daily branches mutually
deposits in the DDA agreed to
account

on account of for crediting the Both the Both the statements are 3
transfer to the Rupee vostro statements a and not correct
nostro account of account of the b are correct
the drawee bank Exchange
where the DDA House by selling
account is permitted foreign
maintained with a currency to the
bank other than the drawee bank
drawee bank. where the DDA
account is
maintained with
the drawee
bank.

It will be the The float period The interest All of the above 4
responsibility of the for the funds earned on the
Exchange House to with DDA amount deposited
arrange for the account will be by the Exchange
transfer of the sum decided by the House with the
collected on any drawee bank in DDA as provided,
particular day to the consultation with up to the date of
DDA account. the Exchange transfer to the
House subject to nostro account of
a maximum of the drawee bank
five days. will accrue to the
Exchange House
4

4
 What is correct about Exchange Earners’ Foreign Currency Account?

703

What is the validity of Drafts drawn by the Exchange House?

704

A person resident in India may open, hold and maintain with an authorised
dealer in India a Foreign Currency Account, to be known as a Resident
Foreign Currency (RFC) Account, out of foreign exchange. Which
statement is correct?
705

The proceeds of life insurance policy claims/ maturity/ surrender values

settled in foreign currency from an insurance company in India permitted
706 to undertake life insurance business by the Insurance Regulatory and
Development Authority. Can a person resident in India open a Resident
Foreign Currency (RFC) Account?
Can the funds in a Resident Foreign Currency Account opened or held or
maintained in terms of sub-regulation (1) be invested outside India?

707
A person resident Exchange It is subjected to All of the above 4
in India may open, Earners’ Foreign the terms and
hold and maintain Currency conditions of the
with an authorised (EEFC) Account, Exchange
dealer in India, a Earners' Foreign
Foreign Currency Currency Account
Account. Scheme specified
in the Schedule I.

Six months from Three months Sixty days from Six months from the date 2
the date of issue from the date of the date of issue of draft
thereof issue thereof thereof.
Received as Realised on received or All the above are 4
pension or any conversion of acquired as gift or correct
other the assets inheritance from a
superannuation or referred to in person referred to
other monetary sub-section (4) in sub-section (4)
benefits from his of section 6 of of section 6 of the
employer outside the Act, and Act; or
India; or repatriated to
India; or

No, account can be Yes, Resident Specific Statement b and c are 2

opened in INR only Foreign Permission from correct
Currency (RFC) RBI to be sought.
Account can be
opened
Funds available in Can be invested Free from all b & c are correct. 4
a Resident Foreign outside India restrictions
Currency Account regarding
cannot be utilisation of
repatriated. foreign currency
balances
including any
restriction on
investment in any
form.
4

4
 Can Resident individuals are permitted to include resident relative(s) as
joint holder(s) in their Resident Foreign Currency account? Which
statement is true?

708

How AD Category-I banks should satisfy themselves that the books of

accounts of Exchange Houses are properly maintained?

709

Exchange Houses need to give Collateral Cover for DDA? What is not
correct?

710

Rupee Drawing Arrangements and Collateral Cover Rupee Drawing

Arrangements can be conducted under which of the following?
711
Can be opened However, such Yes, can be a & b are correct 4
jointly on ‘former or resident Indian opened jointly
survivor’ basis. relative joint with resident
account holder relatives on
shall not be ‘Either or surviver’
eligible to basis
operate the
account during
the life time of
the resident
account holder.

Books of accounts AD Category-I AD Category-I All of the above are 4

of Exchange banks should banks should correct.
Houses are call for periodical periodically
regularly audited by credit reports review the
auditors approved audited balance arrangement by
by the local sheet and profit paying visits to
supervisory and loss account the Exchange
authorities. of the Exchange Houses and / or
House and other by periodical
relevant review of opinion
information. reports.

Not required For collateral cover guarantee from a Not required For 4
Exchange Houses in cash deposit bank of Exchange Houses
which have in any international which have completed
completed three convertible repute equivalent five years of successful
years of successful foreign currency to 7 days’ operation.
operation, equivalent to 7 projected
days’ projected drawings may be
drawings may be obtained.
obtained.

The Designated Non-Designated Speed All of the above 4

Depository Agency Depository Remittance
(DDA), Agency (Non- procedures.
DDA)
4

4
 The Exchange House are required to open a bank account in a convertible
foreign currency in the name of the drawee bank (a/c - Exchange House)
712 with an international bank acceptable to the drawee bank known as

Full form of DDA in the context of Non-resident Exchange Houses?

713

What type of Foreign Currency Account with an authorised dealer in India

714
under these Regulations may be opened, held and maintained
What is correct? Citizen of a foreign State resident in India being in
employment with a company incorporated in India may

715

13. Funds from outside India cannot be raised from abroad through which
of the following instruments/means.
716
Non DDA account DDA account Rupee Vostro Drawee Bank a/c 2
account

Duty Drawback Designated Designated Designated Depository 3

Account Depository Depository Arrangement
Account Agency
Savings Bank Term Deposit Current Account All of the above 4
Account Account
Open, hold and Remit the Both the Only ‘b’ is correct 3
maintain a foreign whole salary statements are
currency account received in correct
with a bank outside India in Indian
India Rupees, to
such account,
for the services
rendered to
such an Indian
company,
subject to
payment of
taxes, as
applicable in
India

American European Global Depository External Commercial 2

Depository Depository Receipts (GDRs) Borrowings (ECB)
Receipts (ADRs) Receipts
(EDRs)
2

2
 Foreign Currency Account can be opened, held and maintained with a
bank outside India. Which of the following is correct?

717
With the funds A shipping or Life Insurance All the above are 4
raised through airline company Corporation of correct
External incorporated in India or General
Commercial India for the Insurance
Borrowings (ECB) purpose of Corporation of
or American undertaking India and its
Depository transactions in subsidiaries for
Receipts (ADRs) or the ordinary the purpose of
Global Depository course of its meeting the
Receipts (GDRs), business. expenditure
the funds so raised incidental to the
may, pending their insurance
utilisation or business carried
repatriation to on by them and
India. for that purpose,
credit to such
account the
insurance premia
received by them
outside India.
4
 Which of the following is correct?

718

On the death of a foreign currency account holder, which of the following

statement is incorrect?

719
Resident The account A person resident All of the above are 4
individuals may may be used for in India who has correct
open, maintain and putting though gone out of India
hold foreign all transactions to participate in
currency accounts connected with an exhibition/
with a bank outside or arising from trade fair outside
India for making remittances India may open,
remittances under eligible under hold and maintain
the Liberalised this Scheme a Foreign
Remittance Currency Account
Scheme with a bank
(hereinafter outside India for
referred to as the crediting the sale
“Scheme”). proceeds of
goods on display
in the exhibition/
trade fair.

The authorised a nominee being . A resident All of the above are 4

dealer with whom a person nominee of an correct
the account is held resident in India, account held
or maintained may who is desirous outside India in
remit to a nominee of remitting accordance with
being a person funds outside Regulation 5 shall
resident outside India out of his close the account
India. share for and bring back
meeting the the proceeds to
liabilities abroad India through
of the deceased, banking
may apply to the channels.
Reserve Bank
for such
remittance.
4

4
 Which of the following is not correct? An authorised dealer maintaining
foreign currency accounts shall -
720

. EEFC Account

721

An Indian party may open, hold and maintain Foreign Currency Account
abroad for the purpose of making overseas direct investments which of the
following terms and conditions is not correct

722

An Indian party may open, hold and maintain Foreign Currency Account
abroad for the purpose of making overseas direct investments which of the
following terms and conditions is not correct

723

Remittances through Exchange Houses for financing of trade transactions

are permitted up to
724
Comply with the Submit periodic . Deduct TDS on Comply with the 3
directions issued by return or the interest directions issued by the
the Reserve Bank statement, if any, accrued in the regulator from time to
from time to time as may be account time
stipulated by
RBI.
Exchange Export Earners’ Export Earning Exchange Earners 1
Earners’ Foreign Foreign Foreign Currency Foreign Currency (EEFC)
Currency (EEFC) Currency (EEFC) Account Account
Account (EEFC) Account

The Indian party is The host country The account shall Any amount received in 4
eligible for making regulations be opened, held the account by way of
overseas direct stipulate that the and maintained dividend and/ or other
investment in terms investment into as per the entitlements from the
of FEMA (Transfer the country is regulation of the subsidiary shall be
or Issue of Any required to be host country. repatriated to India
Foreign Security) routed through a within 90 days from the
Regulations, 2004 designated date of credit.
as amended from account.
time to time

The remittances Any amount Any amount a & b is correct 3

sent to the account received in the received in the
by the Indian party account by way account by way of
should be utilized of dividend and/ dividend / other
only for making or other entitlements from
overseas direct entitlements the subsidiary
investment into the from the shall be
Joint Venture/ subsidiary shall repatriated to
Wholly Owned be repatriated to India within 60
Subsidiary (JV/ India within 30 days from the
WOS) abroad. days from the date of credit.
date of credit.

Rs.10,00,000 Rs.15,00,000 Rs.10,00,000 Rs.15,00,000 (Rupees 2

(Rupees Ten lakhs (Rupees fifteen (Rupees ten fifteen lakhs only) in a
only) in a year lakhs only) per lakhs only) per year.
transaction. transaction.
3

2
 In Rupee Drawing Arrangement with Non Resident Exchange Houses by
725 the AD Category-I Bank. What is the term used for AD Category-I Bank?

In Rupee Drawing Arrangement between Non Resident Exchange Houses

and the AD Category-I Bank. Foreign inward remittances received by the
AD Category-I Bank may be credited directly to the account of the
726 beneficiary held with a bank other than the AD Category-I Bank through
electronic mode, such as, NEFT, IMPS, etc., What is the term used for the
beneficiary’s bank in this arrangement?
What are the responsibilities of the Recipient bank?

727

What is the indication (Term) used by the Partner Bank to the Recipient
728 bank that a remittance is a Foreign Inward Remittances?
Recipient Bank Intermediary Partner Bank Collecting bank 3
Bank

Recipient Bank Intermediary Partner Bank Collecting bank 1

Bank

The Recipient Bank In respect of the The identification All of the above are 4
will credit the bank accounts and other correct
amount transferred which are not documents of the
by the Partner KYC compliant, recipient shall be
Bank only to the the Recipient maintained by the
KYC compliant Bank shall carry Recipient Bank
bank accounts. out KYC/CDD of as per the
the recipient provisions of
before the Prevention of
remittance to Money
such account is Laundering
credited or (Maintenance of
allowed to be Records) Rules,
withdrawn. 2005.

direct-to-account Account payees Credit to the All the above 1

beneficiary
account only
3

1
 What are the responsibilities of the Partner Bank in RDA?

729

What is correct regarding rights & responsiblitites of Partner bank &

Recipient Bank?

730

Fraud cases below Rs.30 million are to be referred to

731

732 Every year Bank celebrates KYC Compliance and Fraud Prevention Day
733 If a fraud, in the account of a customer, has been committed by a member of

734
FIC means

735
CFMC means
736
Serious Fraud Investigation Office (SFIO) works under
The Partner Bank The Partner The Partner All of the above are 4
receiving foreign Bank shall Bank should add correct
inward remittance ensure that an appropriate
through non- accurate alert in the
resident exchange originator electronic
houses under RDA information and message
shall appropriately necessary indicating that this
mark the beneficiary is a foreign
remittances to information is inward remittance
indicate to the included in the and should not be
Recipient Bank that electronic credited to a KYC
it is a foreign message while non-compliant
inward remittance. transferring the account.
fund to the
Recipient Bank.

The identification The Recipient The Recipient All of the above 4

and other Bank may seek Bank shall report
documents of the additional suspicious
recipient shall be information from transactions to
maintained by the the Partner the FIU-IND with
Recipient Bank as Bank. details of the
per the provisions Partner Bank
of Prevention of through which
Money Laundering they received the
(Maintenance of remittances.
Records) Rules,
2005.

Local police/ State CBI ACP None of these 1

police
1st August 1st November 1st July 1st December 1
.0.50 1 1.5 2 2
Financial Fraud International 1
International Committee
Fraud Identificatio Committee Financial Inclusio
Central Financial Central Fraud 4
Monitoring Cell Monitoring Cell
Corporate Fraud Moni Corporate Financia
Ministry of Home Ministry of Ministry of Defence 3
Affairs Finance Ministry of Corpor
4

1
1
2

3
737 Cash shortage up to which is made good by the employee same day and if the
Bank frauds have been classified on the basis of the provisions of the
738

739
FMR means
Special Committee of the Board for monitoring and follow up of cases of
740
frauds (SCBF) involving amounts --------exclusively
741
Flash Report is submitted on frauds involving amounts
742
Flash Report is submitted to
743
FMR is submitted
744
CFR means

745
Delay in reporting of frauds by banks attracts penal action under section
746 The threshold for EWS (Early Warning Signals) and RFA (Red Flagged ) is a
747 All accounts beyond -------classified as RFA or ‘Frauds’ must also be repor
748 Banks must initiate and complete a staff accountability exercise within -- mo
749 Non vigilance cases may be investigated and dealt with at the bank level wit
750 Borrowers who have defaulted and have also committed a fraud in the accou
751 Report on Bank Robberies, Dacoities, Theft, and Burglaries is submitted to
752
FUA means
753
Closure of fraud cases of Rs.0.1 million and above is reported to

754

Which of the following is true in connection with FMR-3

755

Which of the following is true in connection with FMR-4

756
Frauds at Foreign Offices are to be reported to the
757 On detection all frauds of amount ----- and above are reported to respecti
Rs. 5,000/- Rs.1,000/- Rs.10,000/- None of these 3
Banking Regulation NI act 2
Act Indian Penal Co RBI Act
Fraud Monitoring Fraud Method 1
Return Fraud Monitoring Report None of these
2
Rs. 5 million and ab Rs.10 million an Rs.1 million and a None of these
Rs.1 million and Rs.10 million and 2
above Rs. 50 million a above None of these
CFMC 3
DBS, RBI Central OfBengaluru Both a & b None of these
Electronically in None of these 1
XBRL System By post Electronically usi
Commission For 3
Critical Fraud RegistRetribution Central Fraud RegNone of these
35 A of the Banking 2
Regulation Act
47 A of the Bank35 A of the RBI ActNone of these
Rs.500 million Rs.50 million Rs.100 million None of these 1
Rs.500 million Rs.50 million Rs.100 million None of these 1
1 2 6 3 3
1 2 6 3 3
5 Years 6 Years 3 Years none of these 1
FUA RBR Flash Report None of these 2
Fraud Under 1
FMR Update ApplicAdvances Fraud Under AuditNone of these
CFMC, Bengaluru Both a & b 3
SSM (Senior Supe None of these
It is used for case 4
wise quarterly
reporting on frauds
above Rs.0.1
million It is submitted witBoth a & b FMR-3 has been replaced
It is used for Both a & b FMR-4 has been 4
reporting cases of replaced by RBR
theft, burglary,
dacoity and robbery
It is submitted im
Local RBI, Central 4
Police/investigating Office, Mumbai
agencies Local Regulators a All of the above
Rs. 1 million Rs..1 million Rs..5 million Irrespective of amount 2
3

2
1
1
3
3
1
2

4
2
758 Attempted Frauds, of amount, ----- are to be reported by branches to Corporate Centre through resp

759

The fraud cases involving an amount of Rs..1 million and above but below R
Whenever any information or transaction of suspicious nature comes to
760 the knowledge of the Branch, by any source like customer/ non-customers
complaints and internal/external audit reports, the Branches have to report
the matter to -------- immediately.

761

Fraud cases of Rs.50.0 Million and above are to be reported to

Whistle Blower portal of our bank may be accessed using
762

763
PIDPI means

764
What is incorrect as per Whistle Blower Policy of the Bank

765
Who is Designated Official under Whistle Blower Policy of the Bank

766
Who is Reviewing Authority under Whistle Blower Policy of the Bank
‘…no banking company shall employ or continue to employ any person
767 convicted of an offence involving moral turpitude…’ The above stipulations
are contained in

768
Which of the following offences can be considered as those involving moral
Rs. 1 million Rs..1 million Rs..5 million Irrespective of amount 4
R.O. of RBI under Reserve Bank of CGM-in-charge, 1
whose jurisdiction India, CFMC, DBS, Central
the H.O. of the DBS, Bengaluru Office, RBI
Bank falls/ SSM of
RBI Both a & b
their controllers Local CFMC, Begaluru 1
Police/investigati
ng agencies
DGM (Vigilance) a
R.O. of RBI under Reserve Bank of All a, b & c 4
whose jurisdiction India, CFMC,
the H.O. of the DBS, Bengaluru
Bank falls/ SSM of
RBI CGM-in-charge, DB
http://whistleblow 1
.sbi.co.in
https://whistleblower.sbi.co.in https://blowwhistle.https://whistleblower.cvo.in
Public Interest 2
Disclosure &
Protection of
Public Interest Discl Informer Posting InformationNone of these
Whistle Blower is Whistle Blowers None of these 3
an employee of the are investigators
Bank making the or finders of
disclosure The whistle Blower’facts
Deputy General 1
Manager
(Vigilance) at
LHO/CC CVO at CorporateCVC None of these
Deputy General CVC 2
Manager
(Vigilance) at
LHO/CC CVO at Corporat None of these
Indian Penal 1
Code
Banking RegulationRBI Act None of these
Defalcation of Embezzlement 4
accounts Criminal assault All of these
4

4
769

Which of the following does not come under the purview of the Whistle Blow
770
Which of the following isn’t a Bank’s initiative under government business
771 Settlement of central/state Govt. transactions with RBI if dealing /Focal po
772 Commission on Govt. Business on receipts
773 Commission on Govt. Business on Pension payment
774 Commission on Govt. Business on e- receipts
775
Sharing of commission between dealing branch and link branch
776 Commuted portion of pension can be restored
777 ITRO is a
778 ITRO credited through ECS
779 Validity of ITRO is
780 CIN under OLTAS stands for
781 Bank-RBI relationship for conducting Govt. business
782 The validity period of a bill passed by TO
783 GST is PAN based -- digit number
784 SBI conducts Govt. Business as per
785 Maximum deposit allowed in PPF account in a year
786 No of nominees allowed in PPF and SCSS2004 Deposit schemes
787 What is the periodicity of PPF account
788 Withdrawal is allowed in PPF account after
789 Prsesent Rate of interest for PPF
790 Quantum of loan available in PPF account
791 Rate of interest for PPF Loan
792 PPF account can be extended for
793 Quantum of withdrawal in PPF account
794 Penalty for not depositing Minimum deposit in PPF in a year.
795 Maximum deposit allowed in SCSS 2004
796 Rate of interest for SCSS 2004
797 Interest on SCSS 2004 is paid at
798 Periodicity of SCSS 2004
799 SCSS 2004 can be extended for
800 Penalty for premature closure of SCSS 2004
801 Funds settlement in respect of State Govt. Transactions is done by
802 OLTAS means
803 EASIEST means
 Decision taken 2
by the
committees
established by
Corruption, frauds, mthe Bank Manipulation of daNone of these
FXOut GeM (Govt. e- 1
GSTN BKV (Bharat Ke VeeMarketplace)
T+3 days T+5 days T+1 day None of these 1
Rs. 50/- Rs. 45/- Rs. 65/- None of these 1
Rs. 50/- Rs. 45/- Rs. 65/- None of these 3
Rs. 50/- Rs. 10/- Rs. 12/- None of these 3
In a ratio of 75 to Fifty Fifty 1
25 25:75 None of these
after 25 years from after 50 years fr after 15 years fr None of these 3
Negotiable InstrumeQuasi NegotiableBill of exchange None of these 2
Rs. 50,000/- upto Rs.25,000/-Rs.15,000/- None of these 2
3 months 6 months 9 months None of these 1
Challan Identificat Challan Identity Challan Identifiab None of these 1
Agent –Principal Principal- Agent Agent –Sub Agent None of these 1
5 days 10 days 15 days None of these 2
12 10 15 None of these 3
Sec 45 of RBI Act Sec 35 of RBI ActSec 42 of RBI Act None of these 1
Rs.100000/- Rs.150000/- Rs.50000/- Rs.200000/- 2
1 2 More than one 3 3
10 years 15 years 20 years None of these 2
5 Years 6 Years 3 Years none of these 1
7.60% 8.80% 8.75% None of these 1
25% of the balance50% of the balanc25% of the balanceNone of these 1
2% 1% 3% None of these 1
5 years 10 years 15 years 5 years –any number of t4
50% of the balance25% of the balanc50% of the balanceNone of these 1
Rs. 50 / per year Rs. 50/ Rs.100/ None of these 1
No Limit Rs.200000/ Rs.1500000/ Rs.150000/ 3
9.00% 8.00% 8.30% 9.30% 3
Monthly intervals Quarterly intervaYearly None of these 2
5 years 3 years 10 years 8 years 1
3 years 5 years 8 years One extension for 3 year 4
1.5 % after 1 year 2.5% after 1 year No premature closNone of these 1
FSLO FPLB BOD LHO None of these 1
Collection of IncomCollection of Inc Collection of ExcisNone of these 1
Electronic AccountElectronic AccounElectronic AccountNone of these 1
2

1
1
1
3
3

1
3
2
2
1
1
1
2
3
1
2
3
2
1
1
1
1
4
1
1
3
3
2
1
4
1
1
1
1
804 Penal interest for delayed settlement of Govt Transactions (for amount abov
805 GBSS means
806 Nodal office for Central Govt. Transactions
807 After maturity of PPF and where the account is extended the withdrawal all
808 No of times of deposits that can be made in PPF account in a year
809 ILTT means
810 ILTT was implemented in the Bank
811 When introduced, ILTT was first used by
812 How many types of Users are in ILTT
813 ILTT application has been developed by
814 Which of the following is a goal of ILTT initiative?
815 Which of the following is not a menu item for Auditor Users in ILTT
816 Which of the following is not a menu item for Branch Users in ILTT
817 Which of the following is not a menu item for Branch Controller Users in ILT
818 What is the purpose of Income Leakage Period-wise report - It displays
819 What is the purpose of Income Leakage Head-wise report - It displays

820 What is the purpose of Income Leakage Audit-wise report - It displays

A compliant was received by our South Lakhimpur Branch from their customer Varun
Mukherjee that his account had been debited by cheque no. 033425 for Rs. 13,00,000/-
821 on 23.12.2015 which was not issued by him. The complaint was referred to our Ranighat
branch where the payment was made. It was revealed that the said cheque was
deposited in drop-box at Ranighat branch for credit to Mr. Shamin Raj’s account. The
cheque was paid by Ranighat branch on 23.12.2015 and proceeds credited to his
account. What are the necessary steps could have been taken by the branch to avoid the
payment of fake instrument?

The following cheque purportedly issued by BDO Ramgarh were paid by CCPC,
Hyderabad on 25.02.2016 and 30.02.2016. The cheques were presented by CVC Bank in
822 clearing. BDO, Ramgarh has informed the home branch that the original cheques were in
their custody. A cheque no. 563879 was presented by BDO, Ramgarh at Ramgarh Bazar
Branch for NEFT on 20.03.2016 and was returned by the branch as the same cheque had
already been paid. On further verification the fraud regarding unauthorized payment of
Rs. 3,52,000/- came to light. What necessary steps could have been taken by the branch
to avoid the payment of non-Home cheques?
Bank Rate + 2% Bank Rate + 3% Bank Rate + 4 % None of these 1
Govt. Business Sof Govt. Business SGovt. Business setNone of these 2
GAD Navi Mumbai FSLO BOD LHO None of these 1
50% of the balance Maximum 60% ofBalance t as at the eNone of these. 2
12 15 10 None of these 1
Information LeakageIncome LeakageInternal Loss Tracknone of these 2
2015 2012 2016 2010 1
Concurrent AuditorConcurrent Audit Concurrent AuditorNone of these 1
2 5 3 4 3
TCS Nucleus Corp in-house none of these 3
To prevent overlappiTo help in authentTo eliminate dupli All of these 4
Record income leakaEdit leakage detaiAdd account All of the above 4
Enter recovery detailEnquiry Add/Edit auditor All of these 3
Add/ Edit Branch us Add/View/Edit BraReset password foAll of the above 4
Details of income le Details of IncomeHead-wise incomeNone of these 4
Details of income le Details of IncomeHead-wise income None of these 3
2
Details of
Income
Details of income Leakage on
leakage detected particular audit
and recovered for a type for the
particular Branch date range
Audit provided Head-wise incomeNone of these

Tele-confirmation
Tele-confirmation from from drawee branch Water droplet
the drawer of the to regarding test and UV
cheque issuance of cheque Lamp test All of the above

Tele-
confirmation 4
from drawee
Tele-confirmation branch to
from the drawer of regarding Water droplet
the cheque & issuance of test and UV
Fugitive ink test cheque Lamp test All of the above
1
2
1
2
1
2
1
1
3
3
4
4
3
4
4
3

4
 A SB account cheque bearing No. 356258 for Rs. 3,28,500/- purportedly issued by
823 ‘Divisional Engr., M.P. in favour of Shri Suresh kumar was presented in clearing on
10.03.2016 and was paid at Mahasamund Branch in the normal course of Business. Later
on, the account holders vide their letter dated 22.03.2016 advised Mahasamund Branch
that the cheque bearing the said number was issued by them for Rs. 36,566/- only and
had been earlier by the branch and was in their possession.To ascertain the genuineness
of watermark, how it can be verified by the branch concerned?

A Branch ‘A’ received a cheque for Rs. 45.00 lakh in clearing. The cheque was
purportedly issued by ‘B’, maintaining account with Branch ‘C’ in another Circle. The said
824 cheque was issued in favour of ‘X’, maintaining account with our ‘A’ Branch. Branch
Manager, in turn, called the drawer of the cheque on the mobile number mentioned in
the account. An employee of ‘B’, received the call on the said number and informed the
Branch Manager that five cheques relating to the said account were lost and the above
mentioned cheque was one of them. On contacting the Branch Manager of ‘C’ Branch
over telephone, it was learnt that the said account of ‘B’ was marked ‘stop’ and no
further transactions were allowed in the account.What are the measures branch could
have taken to avoid such incidents?

825 On 13.09.2017, a cheque, for Rs. 40,000, drawn on NRE account of “X” and
favoring “Y” was paid in cash across the counter by SWO. Later, “A” (father of “X”, the
account holder) visited the branch on 25.09.2017 and advised that the cheque paid by
the branch on 13.09.2017 was not in order as the original cheque was in his
custody. An email to this effect was also received from the account holder on
25.09.2017, who was in U.K. “A” (father of ‘X’, the account holder) also provided the
photocopy of the disputed cheque leaf to the Branch on 26.09.2017. However, original
cheque leaf was not given to the branch.What are the necessary steps needs to be
taken while making payment of cheques?
 3
Placement of the
watermark on the
cheque may vary
Logo may appear on from one cheque to
any part of the cheque another Both a & b None of the above

4
Contacting Home
Branch / drawer
Carrying out all the before effecting the Exercising utmost
security tests required payment of cheque care while making
for payments of as per the Bank's payment of cheques,
cheques as per laid extant instructions, especially non- home
down instructions in this regard cheques. All of the above

Meticulous
compliance of
Bank's systems &
procedures
regarding 4
Ultraviolet lamp and verification of
magnifying glass test correctness of all
must be undertaken to the features of the
ensure genuineness of instruments
the cheque and including paper
signature of the quality, SBI
drawer. watermark None of the above Both a & b above
3

4
826

A complaint was lodged by “X” regarding five unauthorized withdrawals aggregating to

Rs.1,15,000/- from her SB Account on various dates through forged cheques and a
withdrawal of Rs.10,000/- from her daughter’s SB account, which was under her natural
guardianship. The complainant alleged that the said amount was withdrawn from the
accounts by her father-in-law with the help of two of his accomplices. What steps
could have prevented the fraud in the said branch?

Customer ‘X’, a Pvt. Ltd. Co., made a complaint on 22.05.2017 to their Branch 'A' that Rs.
4,98,000/- had been wrongly debited to their account by a non-home Branch ‘B’ and
827 asked for restoration of the amount. An investigation into the matter has revealed that a
cheque no. 555778 dated 08.03.2017 for Rs. 4,98,000/- drawn by ‘X’ in favour of ‘Y’ was
tendered in the drop box at ‘B’ Branch. The cheque was posted and passed by Shri ‘L’,
Accountant of ‘B’ Branch by transfer to current account of the beneficiary maintained at
‘B’ Branch. The passing officer, in his statement to the investigating official has said that
he had passed the cheque after scrutiny on UV lamp and fugitive ink test. However, he
could not contact the drawer of the cheque on their recorded contact number to seek
confirmation of issuance due to mobile network problem. What steps could have
prevented the fraud in the above case?
 Meticulous
compliance of
Bank's systems &
procedures
regarding
verification of
correctness of all
the features of the Both a & b None of the above 3
instruments
including paper
quality, SBI
watermark,
genuineness of
signature of
drawer/ borrower,
number of digits
used for account
no./ MICR code/
cheque no., etc.
Ultraviolet lamp, and compliance of
fugitive ink and mandate for
magnifying glass tests drawing from the
must be undertaken to account must be
ensure genuineness of ensured before
the cheque. making payment.
all of the above

4
The test of Ultraviolet lamp,
Non home cheques fugitive ink must fugitive ink and
must be entered in be carried out magnifying glass
Cheque Referred & before payment of tests must be
Returned Register cheques for value of undertaken to ensure
before making Rs. 25000/- and genuineness of the
payment. above cheque.
3

4
 In a jointly operated Current Account maintained at one of our branches, an order
cheque, purportedly issued by the account holder for Rs. 2,15,000/- was presented
828 across the counter for cash payment and was paid by the Branch in usual course of
business. Subsequently, a complaint was received from one of the signatories of the
cheque, alleging that payment of Rs. 2,15,000/-, made by the Branch was
unauthorized and not in due course.What the branch could have been doen to avoid the
payment of fake instrument?

829 Two non-home Current Account cheques of Rs.91560/- and Rs.1,32,560/-, issued by 'A'
in favour of 'B' were presented at 'X' Branch for payment. The cheques were paid in
usual course of business and B's account was credited with the proceeds. Later, 'A'
(drawer of the cheque) lodged a complaint at his home branch and disputed the above
two debits and claimed that the cheques were issued by him for Rs.20,880/- and Rs.
25,000/- in favour of different beneficiaries and they were still in his custody. The
cheques debited to A's account for the higher amounts as mentioned earlier, bore the
same numbers.What are the necessary steps could have been taken by the branch to
avoid the payment of fake instrument?

830
A cheque for Rs.1,60,000 was paid in cash, by one of our Branches on 09.04.2013.
Later, a complaint was received from the drawer that the signatures on the said cheque
were forged. Drawer also filed an FIR in this regard.What are the necessary steps could
have been taken while paying the cheques?

A SB Account cheque bearing No. 334125 for Rs. 1,62,500/- pertaining to A/c no.
33159585598 of ‘Executive Engr. Railway’ was presented in clearing by MDB Bank at our
831 Muzafarpur branch on 17.06.2014 to be collected and credited to the account of their
customer Shri Manoj Kumar, which was paid in normal course. On 13.07.2014, Executive
Engr. Railway complained that the above mentioned cheque had not been issued by
them and that the transfer had been effected by means of a fake/forged cheque. The
original cheque which is in possession of the customer, has been seen and verified by
the home branch. Thus the fraud was confirmed. What are the necessary steps needs to
be taken while making payment of Non-Home cheques?
 4
Tele-confirmation from
the drawer of the Micro-lettering Water droplet test
cheque verification and UV Lamp test All of the above

The paying branch

must obtain
confirmation from the 4
drawer of the cheques
(where contact number The test of fugitive
is available in CBS) or Particulars of non ink must be carried
with the Home Branch home cheques out by the officials
in cases of non-home must be entered in concerned before
transactions as per the the Cheques payment of cheques
Bank's extant Referred & for value of Rs.
instructions. Returned Register. 25000/- and above All of the above

4
Tele-confirmation
Tele-confirmation from from drawee branch
the drawer of the to regarding Water droplet test
cheque issuance of cheque and UV Lamp test All of the above

4
All the features of the
instruments must be Testing of fugitive
verified carefully ink for payment of
before payment cheques of value
including paper quality Rs. 25000 and Verification through
& SBI Water mark above UV lamp All of the above
4

4
Case Study Text (Maximum 2000 Characters)

Mr Kushal Kumar was maintaining a joint Saving Bank account with her wife, Mrs Sindhu Kumari, in Branch
XYZ. He was an NRI , residing in Nigeria. A customer of Branch ABC, Mr. P B Sinha, maintaining his salary
account there, presented a cheque, drawn by Kushal Kumar, for crediting to his account. Mr Sinha was an
employee of DEF Ltd. DEF limited was a public sector organisation and situated very close to our Branch
“ABC”. Most of its employees were maintaining their salary account with this Branch.
When this debit came to the notice of Mr. Kushal Kumar, he gave a call to the XYZ Branch advising that the
said cheque was not issued by him. Kushal Kuamr even advised XYZ Branch that the original cheque was
with him only.
The XYZ branch took up the matter with the paying Branch ( Branch ABC) advising the response of the
drawer of the cheque. Branch ABC made an elaborate transaction enquiry of the account and found that
there were nine other debits by cheque between 13.09.16 and 26.09.2016 which were credited to the
account of Mr. PB Sinha.
Mr. Kushal Kumar visited India and produced one of the original cheques to establish that Branch “ABC”
had paid fake cheques . An FIR was lodged with Police Station by Mr Kumar. The investigation made by
Police authorities revealed that there were five fraudsters involved in these incidents. All the nine paid
cheques
Mr were found
D Sarkar, fake cheques.
Proprietor of M/s Diya Enterprises was sanctioned a Home Loan of Rs.4
lacs on 09.08.2016. The customer approached for a cash credit limit of Rs. 2 lacs in the
name of his sole proprietorship firm. The Branch sanctioned the Cash Credit for Rs. 2
lacs on 04.01.2007 and secured the loan colaterally by way of extension scope of home
loan property. The cash credit limit was enhanced to Rs. 4 lacs on 31.03.2008. and to Rs.6
lacs on 23.06.2008.
Subsequently both loan accounts were
declared NPA on 14.09.2011 & 11.04.2011 respectively . The proprietor did not make any
effort to contain iregularities. The collateral security could not be enforced as the Home
loan was construction linked term loan where some disbursements were still left to be
made. The branch filed suits in the court against the borrower. on Investigation, the
following irregularities were observed. 1. Due to
some stiff between Sri Sarkar and the developer the property was not reegistered. No
cognizable effort on the part of branh were not on sight
2. Overdrawings were allowed in the original Cash Credit account till it
reached to Rs. 4 lacs and the limit was enhanced to Rs. Rs.4 lacs.
3. Overdrawings were allowed again till oustandings reached to Rs. 6 lacs and the
limit was enhancedto Rs. 6 lacs.

From May 2014 to August 2015 approximately Rs 6000 crores remitted to Honkong and Dubai based
companies from a bank branch in New Delhi. The money was transferred to around 400 overseas parties.
The import was for dry fruits, rice and pulses but there were no actual Imports.
The Money was remitted by 59 companies through their newly opened account. KYC in these accounts
appeared to be inconclusive / deficient at the time of opening.
These remittances were made by splitting them in smaller amounts to avoid automatic detection by
software used by banks to alert them about such transactions. Amount of each transaction was less than
USD 100000. Further each firm typically made between 4 to 5 transfers to the same exporter in a day.
Heavy cash were accepted in accounts but bank did not generate Exceptional Transaction Report.
In majority of the cases purpose was shown as Advance payment for imports. But bank failed to ask any
import document or shipment documents. Bill of entries have not been obtained by the branch for the
import remittances made. Further no follow up for the same found on record.
The bank has a centralised AML software (Financial Crime Manager) which generates daily AML alerts on
the basis of 90 transactions based alert definition and 27 behavioural based alerts definition.
The branch clubbed multiple entries of different customers made a single reporting to forex treasury. This
resulted in mismatching of entries in Nostro reconciliation.
RBI fined a sum of Rs 5 crore to the bank on following grounds:
1. Customer Identification , incomplete filling of AOF
2. Non-Verification of address through positive confirmation
3. Non Monitoring of Large remittances in Newly opened accounts
4. Non filing of STRs in time in several accounts
S.No. Question
(Maximum 1000 Characters)

1 Which of the precautions was not

2 In this by
taken incident,
Branchthe
xyzprecautionary
at the time of
measures
paying the which passing officer should
cheque:-
have taken depite the fact that Mr. PB
sinha was maintaining the salary
account with xyz branch.
3 Choose the correct statement/s

4 The main reason of the fraud in given

5 case was
What weredue
thetolapses observed on part
1 of passing
From officer
the given of the
data cheque
which among the
2 From the given data which
following was a major lapse among
on thethe
following was a major lapse on the
part of branch
part of branch
3 The branch has allowed series of
enhancement in short time. Which of
the following statement is true
regarding this
4 Which among the following statement
regarding registration of property true

5 Which among the folowing statement

regarding disbursement of loan is false

1 What mistake was done regarding bill

2 of entry?
What is the general instructions on
KYC in case of handling of Imports
Choice1
(Max. 1000 Characters)

Water droplet test

Passing officer should have contacted the drawer of
the cheque which is mandatory for high value
cheque.

Mr. Sinha was well-known to Branch hence it was not

required to get cofirmatin from home branch before
paying the cheque
Transaction in the account on non home branch
No water droplet test was done
Sanctioning of CC linit of Rs. 2 lacs immediately after
The branch
4 months of has not ensured
sanctioning collection
of Home loan of Title deed
and creation of Mortgage

Its generally an accepted practice to help the

borrowers to bring them out of their liquidity prevent
the account from slipping to NPA.

It is the responsibility of the borrower to get the

property registered and submit the documents to
bank. After all its his property . He should safe guard
his interest. Bank has no role to play.
Branch should follow disbursement schdule in case
of construction linked term loan

Though it is not mandatory, branch should have

insisted
There is on getting proof
no specific of imports and if
instruction
customer was not cooperating, the matter should
have been reported to appropriate authority
Choice 2 (Max. 1000 Characters) Choice 3 (Max. 1000 Characters)

Bank’s logo printed with fluorescent Only 1

Telephonic confirmation
invisible ink(UV test) from the home both 1 & 2
branch(xyz) before payment of cheque

The credit was being effected to salary both 1 &2

account hence confirmation from drawer of
cheque is not required.
Solely reliance on the credential of Mr. Lackadaisical approach of passing
Sinha
Bank’swho
logowas maintaining
printed salary
with fluorescent officer
Passing officer did not try to
account
invisible ink(UV
Securing test)collaterally by way of
the loan contact drawer of the cheque
Both of the above
The
extension scope ofnot
home loan was homefullyloan
disbursed
property which
Both of is the
mandatory
above for high value
even after expiry of 5 years cheque.

It’s a clear manifestation of financial Overdrawing in Cash credit

accomodatation intended to conceal account is not considered irregular
the iiregular overdrawing permitted
days together.
It is the duty of Branch to follow up with Branch should not make any
the borrower and developper for disbursement unless the property is
registration of property ,obtain title registerd.
deed and create Equitable mortgage
If some part of loan remain undisbursed Branch should not worry if loans
the reason thereof should be ascertained are remained undisbursed as it
and recorded. reduces our exposure to risk by
such undisbursed amount

The branch has not done any wrong as bill c) Branch should have reported the
of
AD entry is not required
Category formay
– I banks advance matteris to
particularly KYC RBI
the directly
responsibility of
payment of less than USD
note to adhere to "Know Your 100 000. accounts opening official
Customer" (KYC) guidelines issued by
Reserve Bank (Department of Banking
Regulation) in all their dealings.
Choice 4 (Max. Right Ans
1000 (Numeric)
Characters)
Both 1 & 2 4
none 3

none 4

none 2
all 4
None of the 2
None
aboveof the 3
above

None of the 2
above

All of the above 2

Non of the above 3

d) AD Category – 1
I bank need not 2
Documentary
follow
evidenceup is
submission
sufficient forofKYC
evidence of
purpose
import involving
amount of USD
100,000 or less
provided they
are satisfied
about the
genuineness of
the transaction
and the
bonafides of the
remitter.
The Money was remitted by 59 companies through their newly opened account. KYC in these accounts
appeared to be inconclusive / deficient at the time of opening.
These remittances were made by splitting them in smaller amounts to avoid automatic detection by
software used by banks to alert them about such transactions. Amount of each transaction was less than
USD 100000. Further each firm typically made between 4 to 5 transfers to the same exporter in a day.
Heavy cash were accepted in accounts but bank did not generate Exceptional Transaction Report.
In majority of the cases purpose was shown as Advance payment for imports. But bank failed to ask any
import document or shipment documents. Bill of entries have not been obtained by the branch for the
import remittances made. Further no follow up for the same found on record.
The bank has a centralised AML software (Financial Crime Manager) which generates daily AML alerts on
the basis of 90 transactions based alert definition and 27 behavioural based alerts definition.
The branch clubbed multiple entries of different customers made a single reporting to forex treasury. This
resulted in mismatching of entries in Nostro reconciliation.
RBI fined a sum of Rs 5 crore to the bank on following grounds:
1. Customer Identification , incomplete filling of AOF
2. Non-Verification
Aashirwad of address
Nagar branch of ourthrough
bank waspositive confirmation
situated at a suburban area of Mumbai. It was a CM headed
3. Non Monitoring
branch. of Large remittances
The Chief Manager of branch was in very
Newly opened accounts
aggressive in taking leads of Home loans & the branch has
4.
gotNon filing of STRs
appreciation from incontrollers
time in several accountsbudget allotted in Home loans. Mr. Kantibhai was a
for achieving
5. Non flagging
renowned of theofalerts
customer to higher
branch. authorities
Kantibhai by his
was doing thejewellery
Regional business
office for last 30 years .One day Mr.
6. Closurealong
Kantibhai of alerts
withinhis
a routine manner
wife reached Happy home branch.& requested for a home loan of Rs.5.00 Cr. for
7. Weakness
purchase and failures
of three flats in in the internal
Mumbai. controlstaff
The branch mechanism
was very happy that the branch would be getting a big
ticket size home loan. The flats were under construction. The proposal was processed by RACPC &the loan
was sanctioned by CCC-I on 25.02.2013. The builder & developer M/s Happy Homes (Prop: Mr. Happy
Singh) has made a demand of full & final payment of Rs.5.89 Cr. instead of Rs.Rs.5.32 Cr. (excluding Rs.0.57
Cr.i.e.7% of cost of flats payable at the time of possession as per terms of draft sale deeds). He has
submitted a demand letter along with a certificate of an architect M/s Aakriti Pvt.Ltd. certifying that all the
three flats have been completed & the same are ready for possession” The certificate was signed by Miss
Aakriti Singh d/o the builder & developer. Mr. Happy Singh.The entire amount of home loan was disbursed
& creditor to seller M/s Happy Homes through RTGS on 01.03.2013 On the request of our Commercial
branch an extension of E.M. was also created on 12.04.2013 by the RACPC on the same three flats (valuing
Rs.8.65 Cr. against which HL of Rs.5.00 Cr. was sanctioned.) for credit facility sanctioned at their branch to
the tune of Rs.25.00 Cr.
The borrowers were paying the instalments regularly as per repayment schedule up to Sep, 2015. After
that the account became irregular & turned NPA on 29.02.2016 due to non payment of instalments. The
bank official visited the site on 02.03.2016 & it was come to the notice that the building was incomplete.
Later on the case was turned into fraud.
(On serving the notice under Sec13 (2) of SARFAESI Act& photo threat notice to borrowers on 02.03.2016
The builders has informed that the borrowers has informed after a lapse of three years vide his letter
dt.29.04.2016 that the borrowers have cancelled the agreement by exchanging a letter dt. 10.06.2013 i.e.
within a period of 04 months of availing of housing loan from the bank which however was without bank’s
knowledge.
3 Bank had put in place an AML structure
but where it went wrong:

4 There was no monitoring of newly

5 opened accounts
Sudden as large
spurt in number ofamount
forex of
1 forex remittances
transactions
What was thefrom were being
a particular
reasons made
branch of
of occurrence
2 without
should
What was
fraud. anythe
have proper
been enquiry:
flagged
negligence bythe
of Forex
branch
treasury.
3 What precautions should be taken by
IFB before creating extension of
Mortgage?
4 What precautions are to be taken to
prevent the fraud in home loans?
5 Present Case is_________
Bank has fulfilled its obligation by putting up an AML
structure

Yes
No. Forex treasury is not concerned
PSS of property not done
PSS of property not done

PSS of property not done.

Proper due delligence of borrower & property to be

done.
A case of honesty & integrity
The alerts were not taken seriously and The officers manning the AML did
were closed as per routine without not realise the importance of their
applying mind and matter was not taken role.
up at higher level.
The accounts were opened after KYC When a number of small
cheque andshould
Yes. They no monitoring required
have flagged the issue remittances to a particular
As the reporting of transactions
to theuse
End controlling office
of fund not with advise that the
ensured beneficiary
was done after
Possession in a single
was day
clubbing
letter was
notofobtained
a
opinion/credit
Full amount was report on the beneficiary
disburded without be made,
number
Loan
from the
was dealing
of fully officerthe
transactions,
disbursed
builder/borrower. should
forex
without
obtained.
confirming end use of funds have
obtaining possession letter. higher
raised
treasury was the
notmatter
able to
to his
identify the
authorities.
wrong doings.
Completion certificate not obtained from Valuation report of property not
builder. obtained.

Pre sanction survey of property is to be Loan is to be disbursed in stages

done. as per terms & condition of loan.
A case of robbery A case of breach of trust
Both b) and c) 4

Both a) and C) 4
Both b) and C) 4
All of them 4
All of them 4

All of them 4

All of them 4

None of them 3