Sample Paper-Bank Promotion Exams-2016

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SAMPLE PAPER FOR ne
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BANK PROMOTION EXAMS

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This collection of questions is contribution of so many persons. First of all we thank all of
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them for their valuable contribution. Though we had taken enough care to go through the
questions, we request everyone to go through the latest RBI circulars, bank’s website and
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other internal circulars and update yourself with the latest information through RBI website
and other authenticated sources. In case you find any incorrect/doubtful information, kindly
update us also (along with the source link/reference for the correct information).
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Tangible net worth is :
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a. Current assets – current liabilities
b. Capital + free reserves + surplus – Intangible assets
c. Long term liabilities – long term assets
d. None of the above
s.
Ans - b
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Debt equity ratio is :
x
a. Term loan/Equity
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b. Current liabilities + Equity
c. Current liabilities + Term liabilities/Tangible net worth
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Ans - c
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In a partnership firm, the no. of partners cannot go beyond 10 or 20 depending upon the
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nature of business. The provision regarding this maximum no. of partners is mentioned in:
a. Indian Partnership Act 1932

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b. Indian Contract Act 1972

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c. Companies Act 1956

d. Banking Regulation Act 1949
nk
Ans - c
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a
For the purpose of change in classification of an advances from standard to sub-standard

category due to non-payment of the loan, in case of crop based agriculture advances, which
.b
of the following is taken:

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a. two harvest seasons

b. two crop seasons
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c. one crop season

d. two crop seasons for short duration crop and one crop season for long duration crop
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Ans - d
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As per _____, the banks cannot allow loans and advance to their Directors and the firms in
which they hold substantial interest:
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a. Section 19 (2) of RBI Act
b. Section 19 (2) of Banking Regulation Act
c. Section 20 (1) of RBI Act
s.
d. Section 20 (1) of Banking Regulation Act
am
Ans - d
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A loan of Rs.4 lac. was sanctioned during April 2011 and it started showing irregularity in the
x
month of Oct 2011. This account will be classified as ____as on Mar 31, 2013:
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a. special mention account
b. sub-standard account
c. doubtful up to one year
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d. doubtful above 1 year but up to 3 year
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Ans - c
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Corporate Bank had opened a saving bank account in the name of Mr. Subramanian and
Murlidhar operated as ‘former or survivor’. The wife of Mr.Subramanian, who is nominee in
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the account comes to your branch and informs you that Mr. Subramanian has expired a
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month back. She also hands over the death certificate and requests for payment of the
balance.
nk
a. the payment to the nominee will be made on proper identification as she is also having
the death certificate.
b. the payment will be made to the wife of deceased being legal heir of the former.
a
c. the payment will not be made as with the death of the former, nomination has been
cancelled.
.b
d. the payment will not be made as with the death of the former, survivor gets the authority
to operate the account and nominee comes in to picture only when none of the account
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holders is available
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Ans - d
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For service oriented micro enterprises, the investment ceiling in equipment excluding land
and building is:
a. Rs.20 lac
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b. Rs.3 lac
c. Rs.5 lac
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d. Rs.10 lac
Ans - d
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s.
As per provisions of which of the following, the nominated bank gets a period of ____ days
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to verify the documents drawn under a documentary credit:
a. RBI guidelines, 7 banking days

b. FEDAI rules, 5 banking days
x
c. UCPDC, 5 calendar days
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d. none of these is correct
Ans - d
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A savings account was opened in the name of a minor under guardianship of his father to be
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operated by the father 5 years back. The minor has now become major. We should:
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a. Close the old account and must pay the amount to the minor now major and hot allow
him to continue the account.
b. Delete the name of the guardian and continue the account in the single name of the
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minor now turned major

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c. Pay the amount to the natural guardian

nk
Ans - b
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a
A contract made by a minor is:

.b
a. Void ab initio and he can not ratify it even after attaining majority
b. Invalid but he can ratify it after becoming major
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c. Lawfully valid
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Ans - a
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The maximum no. of directors in a public limited company can be:
a. 3
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b. No limit
c. 12
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d. 4
Ans - b
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s.
The Memorandum of Association is a document which:
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a. Describes the powers of the share holders of the co.
b. Defines the powers of the officials of the company
c. Defines the constitution, objectives, authorised capital and gives names and address of
x
registered office and defines the liability of the shareholders.
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d. None of the above.
Ans - c
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17 years old minor requests the bank to grant a loan against FDR:
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a. Bank would accede to the request.

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b. Bank would not accede to the request

c. Bank cannot grant a loan but can make a premature payment
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Ans - c
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According to section 6 of Hindu Minority and Guardianship Act 1956, the natural guardian
of a Hindu Minor is:
a
a. Father and mother after father’s death

b. Father and grandfather after father’s death
.b
c. Father and mother after death of the father and grandfather after death of the mother.
d. Mother and father after death of the mother
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Ans - a
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The Articles of Association of a company is a documents which:
a. Defines rules and regulations for internal management of the company which are related
to its day to day functioning.
b. Describes the constitution and objectives of the Co.
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c. Is formulated to issue shares
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Ans - a
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s.
Which of the statement is true for a public limited co.?
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a. The no.of share holders is limited.
b. The member of branches is limited
c. The liability of the shareholder is limited.
x
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Ans - c
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Against which of the following securities, the banks cannot grant loans:
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a. shares of approved companies
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b. fixed deposit of bank
c. debentures of companies
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d. certificate of deposit issued by banks
Ans - d
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In a public limited company, maximum and minimum no. of shareholders is:

nk
a. 50 and 10
b. No limit and 7
c. 100 and 2
a
d. 1000 and 100

.b
Ans - b
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Loan against LIC policies are given based on

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a. surrender value
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b. paid up value
c. Insured value
d. market value
Ans – a
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A cheque is presented for payment through clearing house but due to certain reasons, it is
returned unpaid. The returning memo is enclosed to comply with:
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a. Negotiable Instruments Act
b. RBI Act
c. Banking Regulations Act
s.
d. RBI clearing House rules
am
Ans - d
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For which of the following category of loans the risk weightage for Capital Adequacy ratio
x
purpose is 125%:
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a. exposure to capital market
b. exposure to real estate
c. loans to strategically important non deposit taking NBFCs
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d. exposure to NPA account in housing finance loans
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Ans - a
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Which of following document is not required to open a current account in the name of a
private limited co.?
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a. Certificate of incorporation
b. Certificate of commencement of business
c. Memorandum of association
nk
Ans - b
a
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.b
If director of another bank requires a loan of Rs._____, the loan can be sanctioned by Board
of Directors or Management Committee:
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a. up to Rs.10 lac
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b. Rs.25 lac and above

c. less than Rs.25 lac
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d. up to Rs.50 lac
Ans - b
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In terms of financing of working capital requirement of micro units under the Nayak
Committee method, the current ratio works out to be:
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a. 1.33:1
b. 1.25:1
c. 1.20:1
s.
d. 1.17:1
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Ans - b
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If the ATM has not dispensed the cash but account has been debited, the dispute regarding
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such transactions is to be resolved by the banks within ?
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a. 15 days
b. 12 days
c. 7 days
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d. 3 days
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Ans - c
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A kite flying transaction represents which of the following:

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a. when overdraft is allowed by a bank to a firm

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b. when additional loan is allowed by a bank to a firm to cover the amount of irregularity in
the account
c. when a bill is drawn without consideration by seller of goods on buyer of good.
nk
d. when loan is allowed for low amounttransaction
Ans - c
a
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.b
Bank has sent notice for possession of the security under SARFAESI Act. The borrower can
approach which of the following:
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a. Debt Recovery Tribunal

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b. Distt Court
c. High Court
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d. any of the given courts
Ans - a
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Mr. Z, a friend of Mr. X informs the bank that X has become insane. He wants to deposit
Rs.2000 in the saving bank account of Mr. X:
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a. the bank will have no objection in getting the amount deposited
b. the bank will not permit the amount to be deposited
c. the amount can be deposited with consent of guardian of Mr. X
s.
d. the amount can be deposited with consent of legal heirs of Mr. X, if there is no
nomination, otherwise nominee
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Ans - c
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x
If a property worth Rs1 lakh is insured for Rs 80000/- and the loss occurred is to the extent
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of Rs 60000/-then insurance company is liable to pay
a. Rs 60000/-
b. Rs 80000/-
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c. Rs 48000/-
d. Rs 1 lakh
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Ans - c
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Loan against FDR can be granted provided it is issued by

o
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a. by the same branch only

b. by the same bank only
c. any nationalized bank
nk
d. any commercial bank
Ans - b
a
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.b
A document executed outside India should be stamped

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a. at the time or before execution of document

b. within 3 months of receipt of document in India.
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c. within 4 months of receipt of document in India

d. Stamping is not required if executed abroad.
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Ans - b
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The description Risk of loss resulting from inadequate or failed internal processes, people
and systems or from external events, mainly relates to
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a. Reputation Risk
b. Compliance Risk
c. Operational Risk
s.
d. Legal Risk
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Ans - c
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The following is not a key element of Bank’s policy on KYC/AML.
x
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a. Customer Acceptance Policy
b. Customer Identification Procedure
c. HR Policy
d. Monitoring of transaction
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Ans - c
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Under customer Acceptance Policy Bank’s customers are classified into
a. Nil, High, Medium, Low Risk category

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b. Zero, High, Medium, Low Risk category

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c. Highest, High, Medium, Low Risk Category

d. High, Medium, Low Risk Category
nk
Ans - d
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a
The N.I act 1881 allows three days grace to

.b
a. sight bills of exchange

b. usance bills
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c. promissory notes
d. cheques
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Ans - b
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In the case of a joint stock co the registration of a charge is not required with registrar of
companies for
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a. Pledge of moveable property
b. hypothecation of moveable property
c. assignment of book debts
s.
d. mortgage of fixed assets
am
Ans - a
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A usance bill is presented for acceptance to the drawee. He has to accept in
x
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a. within 24 hrs
b. within 48 hrs
c. within 72 hrs
d. no time limit
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Ans - b
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Bank’s code for customers was released by
a. RBI
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b. SEBI
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c. BCSBI
d. IBA
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Ans - c
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a
If a DP goes bankrupt, what happens to the dematerialized holdings of investors with the
DP?
.b
a. The assets of the investor may be used for paying off the creditors of the DP.
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b. The appointed "court receiver" has the discretion to dispose off the assets of the investor
in the manner he deems fit.
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c. Depository has the discretion to dispose off the assets of the investor in the manner it
deems fit.
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d. The investor can opt for dematerialization or open his account with another DP and
transfer his holdings.
Ans - d
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An ex staff wants to open FCNR(B) accounts and demands 1% additional interest. As per RBI
guidelines
co
a. can be allowed subject to not crossing the cap rate
b. not allowed
c. allowed subject to RBI permission
s.
d. allowed if opened for 5 years
am
Ans - a
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Bank has granted packing credit advance to exporters of HPS groundnut cakes, the amount
x
of which is more than the value of the export order. To be eligible for concessional rate of
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interest, the advance in excess of the export order is required to be adjusted either in cash
or by sale of residual by-product oil within a period not exceeding____days from the date of
advance.
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a. 15 days
b. 30 days
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c. 180 days
d. 270 days
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Ans - b
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A minor, who was not born in India, would attain majority.
a. After completing age of 18 years

nk
b. After completing 21 years of age

c. Attaining age fixed for majority according to law of land where he was born.
a
Ans - b
.b
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In case a public limited company is not able to pay to creditors, then:

w
a. Co. will be declared insolvent

b. Co may go to liquidation
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c. A lockout would be declared

Ans - b
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Mohammed Musa, minor Muslim boy whose father has expired without leaving behind a
will comes to you to open a Saving Bank account. Under whose guardianship, you will
co
permit the opening of the account.
a. mother
b. maternal grand-father
s.
c. paternal grand-father
d. guardian appointed by the court
am
Ans - c
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x
A company availing credit facilities does not require registration of charges u/s 125 of
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Companies Act 1956 for:
a. Packing Credit
b. Hypothecation
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c. Pledge
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Ans - c
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The debenture holders of a company are its:

o
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a. Owners
b. Debtors
c. Creditors
nk
d. Shareholders
Ans - c
a
...................................................
.b
Banks conduct such business relating to:

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a. Central Govt.
b. State Govt.
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c. Tax authorities and railway and communication Dept.

d. All the above
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Ans - d
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Which of the following statement is not correct regarding maximum provision for country
risk where a bank is having exposure in other countries:
co
a. provision for country risk is in addition to the normal provision on the basis of asset
classification of the bank
b. provision for country risk is required to be made where the net funded exposure is 2% or
s.
more of its total assets
c. the total provision on loss and doubtful assets along with country risk provision shall not
am
exceed 100% of the outstanding
d. banks are not to make any provision for exposure in India as part of country risk
provisions
x
Ans - b
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A govt. bill is:

io
a. a quasi negotiable instrument
b. not a negotiable instrument
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c. negotiable instrument
d. none of the above
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Ans - b
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pr
Pension account can be transferred from one bank to another:
a. any number of times

nk
b. twice in life time

c. once in a financial year
a
Ans - c
.b
...................................................
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Life certificate is to be obtained from a pension during the months of:

w
a. January
b. December
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c. April
d. November
Ans - d
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Premature closure of PPF account can be permitted by:
co
a. Opening bank
b. Govt. of India
c. RBI
s.
Ans - b
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...................................................
A contract that provides a right but does not impose any obligation to buy or sell, a financial
instrument, say a share or security, is called:
x
ne
a. option
b. derivative
c. swap
d. futures
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Ans - b
ot
...................................................
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Documents have been presented for negotiation on July 27, 2012, under a letter of credit
which is dated as July 12, 2012. As per Lc. the validity date of shipment is up to July 25,
2012.The actual date of shipment, mentioned on the documents is July 08, 2012.
o
pr
a. the documents can be negotiated if otherwise in order

b. the documents bear date which is earlier to date of LC. Hence documents cannot be
negotiated.
nk
c. the documents cannot be negotiated as gap between date of shipment is more than 15
days.
d. none of the given options is correct
a
Ans - a
.b
...................................................
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Counterfeit notes have been received from a customer who had deposited the amount in
his current account:
w
a. These will be forward to police and FIR will be lodged

w
b. these will be forwarded to police at the end of the month in which received
c. these will be forwarded to police immediately if the no. is 5 or more
d. these will not be forwarded to police
Ans – a
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The gap between the value of export and import of goods during a particular period, is
called:
co
a. balance of payment
b. trade balance
c. current account position
s.
d. capital account position
am
Ans - c
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As per Income Tax Rules, the form 26Q is used for which of the following purposes:
x
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a. Quarterly statement of TDS on salaries
b. Quarterly statement of TDS on interest on securities
c. Quarterly statement of TDS on interest other than on securities
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Ans - c
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...................................................
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Which of the following appropriately explains the term arbitrage in the context of foreign
exchange transactions:
o
a. the exchange rate used for retirement of documents under a letter of credit
pr
b. the exchange of foreign exchange flows between two parties

c. sale of Fc in one market at higher rate followed by purchase of Fc at a lower rate in
another market simultaneously,to make profits due to rate difference
nk
d. sale of Fc forward and simultaneous purchase of Fc spot, with a view to manage exchange
risk
a
Ans - c
...................................................
.b
Bank’s conduct Govt.Business on behalf of :

w
a. State Government concerned

w
b. Central Govt.
c. RBI
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Ans - c
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The letter of credit which is similar to a performance bond or bank guarantee is called:
co
a. red clause Lc
b. standby LC
c. back to back Lc
d. such Lc cannot be issued as there will be no document involved.
s.
Ans - b
am
...................................................
Which of the following statement is not true in the context of open market operations:
a. open market operations are carried by Ministry of Finance, Govt. of India
x
b. in open market operations the sale of different type of securities takes place
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c. open market operations are carried with a view to reduce the cost of money
d. all the given options
Ans - d
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...................................................
ot
As per RBI guidelines, in case of RTGS, NEFT and ECS, the credit to an accountis to be given
on the basis of:
m
a. name of account
b. account number
o
c. name of account and account no

pr
d. any of these
Ans - b
nk
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Which of the following is the objective of asset liability management

a
a. assets and liabilities are managed in such a manner that risk is minimum to the bank
.b
b. residual maturity of assets and liabilities should be equalized

c. net earning from interest is maximized within the overall risk-preference of the
w
institutions.
d. all the given options
w
Ans - c
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A loan to an MSE has been guaranteed by CGTMSE. What is the risk weight of the
guaranteed portion of this loan for the purpose of capital adequacy ratio:
co
a. 0%
b. 20%
c. 50%
s.
d. 100%
am
Ans - a
...................................................
X had given mandate in the name of b. to operate his current account. b. signed a cheque
x
on July 12, 2012 which was presented on July 31, 2012. b. however, expired on July 22,
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2012.
a. the cheque shall be returned as, on date of presentation, the signatory of the cheque had
died
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b. the cheque shall be returned as, with death of the agent, his authority is terminated.
c. the cheque shall be paid, as with death of agent, the authority of principal continues to be
ot
in operation
d. the cheque shall be paid after getting consent of the principal, who is still alive
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Ans - c
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o
pr
What is the limitation period in case of execution of decree issued by a court:
a. 3 years from the date, when copy of decree is received by the bank
nk
b. 12 years from the date, when copy of decree is received by the bank
c. 12 years from the date of decree
d. 3 years from the date of decree
a
Ans - c
.b
...................................................
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The legal amount of a cheque represent which of the following:

w
a. amount in figures
b. amount in words
w
c. amount in words and figures, whichever is large

d. amount in words and figures, whichever is small
Ans - b
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In the context of prudent guidelines on asset classification, the term out of order is used in
respect of which of the following accounts :
co
a. term loans
b. cash credit or overdraft
c. bills purchase or bills discounting
s.
d. demand loans
am
Ans - b
...................................................
Debt service coverage ratio of a project is 1.65. It can be improved /increased with which of
x
the following actions:
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a. by reducing the amount of long term loans and the amount of capital
b. by increasing the amount of long term loans and the amount of capital
c. by increasing the amount of long term loans and by reducing the amount of capital
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d. by increasing the repayment period
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Ans - d
...................................................
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Details of unimplemented awards of Ombudsman scheme pending for more than 3 months,
are to be placed by the banks to which of the following:
o
pr
a. Dy. Governor RBI

b. CMD / ED of the bank
c. CEO of the bank
nk
d. Customer Service Committee of Board
Ans - d
a
...................................................
.b
TDS is deductible on which of the following account:

w
a. all types of term deposit accounts including recurring deposit

b. all saving bank accounts
w
c. all NRO accounts including saving bank,where interest is paid

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Ans - c
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Which of the following activity cannot be undertaken by Business Correspondents
co
a. disbursement of small value loans
b. collection of small value deposit
c. collection of transaction fee from customers
d. recovery of principal and interest
s.
Ans - c
am
...................................................
The bank received garnishee order on saving bank account of Mr. Ram at 10.50 a.m., who
deposits Rs. 5000 at 12.10 p.m.:
x
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a. The order would apply to this amount also.
b. The bank will refuse to accept the deposit as no amount can be accepted after garnishee
order
c. The order will not apply to this amount
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d. order will apply if court is informed about this
ot
Ans - c
...................................................
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o

pr

b. two crop seasons
nk
c. one crop season

a
Ans - d
...................................................
.b
w

w
a. Section 19 (2) of RBI Act

w

d. Section 20 (1) of Banking Regulation Act
Ans - d
...................................................
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Mr N issued cheque for Rs 8000/- and left some blank space after the amount in words and
figures and gave it to his clerk. His clerk added one zero after amount written in figures and
co
Y in the amount written in words, making it as eighty and 80000/-. The account is debited
for 80000/-. Who is responsible?
a. there is material alteration and bank is negligent. Hence bank liable.
s.
b. there is forgery due to which the bankis liable
c. customer is negligent in writing the cheque due to which the alteration has taken place,
am
hence customer is liable for the loss.
d. since bank has paid the amount of an altered cheque and customer was negligent, the
loss to be borne by both of them equally
x
Ans - c
ne
...................................................
A loan of Rs.4 lac. was sanctioned during April 2013 and it started showing irregularity in the
month of Oct 2013. This account will be classified as ____as on Mar 31, 2015:
io
a. special mention account
ot
b. sub-standard account
c. doubtful up to one year
m
d. doubtful above 1 year but up to 3 years
Ans - c
o
...................................................
pr
Corporate Bank had opened a saving bank account in the name of Mr. Subramanian and
Murlidhar operated as ‘former or survivor’. The wife of Mr.Subramanian, who is nominee in
nk
the account comes to your branch and informs you that Mr. subramanian has expired a
month back. She also hands over the death certificate and requests for payment of the
balance.
a
a. the payment to the nominee will be made on proper identification as she is also having
.b
the death certificate.

b. the payment will be made to the wife of deceased being legal heir of the former.
w
c. the payment will not be made as with the death of the former, nomination has been
cancelled.
w
d. the payment will not be made as with the death of the former, survivor gets the authority
to operate the account and nominee comes in to picture only when none of the account
w
holders is available
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
RBI is required to furnish Annual Information Return to Income Tax Department where:
co
a. RBI receives an aggregates amount of Rs.2 lac. or more in a year for bonds issued by RBI
b. RBI receives an aggregates amount of Rs.3 lac. or more in a year for bonds issued by RBI
c. RBI receives an aggregates amount of Rs.5 lac. or more in a year for bonds issued by RBI
d. RBI receives an aggregates amount of Rs.10 lac. or more in a year for bonds issued by RBI
s.
Ans - c
am
...................................................
and building is:
x
ne
a. Rs.20 lac
b. Rs.3 lac
c. Rs.5 lac
d. Rs.10 lac
io
Ans - d
ot
...................................................
m
o

pr

nk
Ans - d
...................................................
a
As per Section 20-A of Banking Regulation Act, the loans in the name of bank directors can
.b
be remitted (written off) with permission of which of the following:

w
a. Management Committee within the bank

b. Board of Directors of the bank
w
c. Reserve Bank of India

d. cannot be written off
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A business firm has been sanctioned working capital limits of Rs.6 lac. at 25% margin by the
bank and book debt limit of Rs.4 lac. at 50% margin. What will be total margin requirement
co
to avail the limit fully:
a. 4 lac
b. 5 lac
s.
c. 6 lac
d. 6.5 lac
am
Ans - c
...................................................
x
What is the maximum time available to a customer for lodging complaint to Ombudsman:
ne
a. 1 month from date of complaint made to bank and no reply received
b. 1 year from date of receipt of reply from the bank but customer is not satisfied
c. 1 year from date of lodgement of complaint with the bank + 1 month, where reply has not
io
been received.
d. b or c
ot
Ans - d
m
...................................................
CGTMSE amount of guarantee cover for a balance of Rs. 80 lakhs in case of an eligible
o
normal borrower in other than NE states, will be:

pr
a. Rs.55 lac
b. Rs.50.00 lac
nk
c. Rs.37.50 lac
d. Rs.22.50 lac
a
Ans - b
...................................................
.b
OLTAS can be related to

w
a. BSE
w
b. CDSL
c. NSDL
w
d. IBA
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Ravi your customer of a saving bank account is approached by a person called Ram to give
an introduction to enable him to open a saving bank account with your branch to which he
co
agrees. Subsequently it is proved that Ravi gave introduction though he really did not know
much about Ram. In such situation:
a. Bank can hold Ravi responsible as he carelessly gave the introduction
s.
b. Bank cannot hold Ravi responsible as Ravi has not violated introduction rules
c. Bank can recover 50% of amount from Ravi
am
d. any of the above
Ans - b
...................................................
x
ne
FCRA MEANS
a. Foreign Currency Regulation Act

b. Foreign Contribution Regulation Act
io
c. Foreign Cheques Regulation Act
d. None Of The Above
ot
Ans - b
m
...................................................
“Four eyes concept” means

o
pr
a. opening and verifying account by one person two times

b. opening and verifying account by electronic device
c. opening and verifying account by two different persons
nk
d. rejecting to open the account
Ans - c
a
...................................................
.b
FATF means
w
a. Financial accounting trade federation

b. Financial association of traders in France
w
c. Foreign authority trade federation

d. Financial action task force
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
As per RBI CIRCULAR which of the following can act as Business correspondent for banks in
their efforts towards financial inclusion
co
a. SHG
b. Insurance agents
c. Agriclinics
s.
d. Post offices
am
Ans - d
...................................................
The three pillars in achieving social transformation are
x
ne
a. State government/the formal financial system/community base organization and NGOS
b. Money lenders/credit societies/RRBS
c. Primary cooperative societies/development coop banks/state coop banks
d. Mone of the above
io
Ans - a
ot
...................................................
m
In terms of Sec 4 whosoever commits the offence of money laundering shall be punishable
with
o
a. minimum imprisonment of 3 years and maximum 7 years

pr
b. fine of Five lakhs

c. both 1 & 2
d. 12 years imprisonment
nk
Ans - c
...................................................
a
You buy something at a place where price is low and simultaneously sell the same thing
.b
where price is high is known as

w
a. Hedging
b. Speculating
w
c. Arbitraging
d. Option
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
At maturity of FUTURE CONTRACT the spot price is more than the Future price, is known as
co
a. convergence
b. contango
c. backwardation
s.
Ans - c
am
...................................................
The white portion in the bank note is known as
x
a. security mark window
ne
b. water mark window
c. blank window
d. space for writing window
io
Ans - b
...................................................
ot
Government expenditure/tax policy is referred as

m
a. Fiscal policy
b. monetary policy
o
c. government policy
pr
d. exchange rate policy
Ans - a
nk
...................................................
Which of the following is the measure of NARROW MONEY

a
a. M0
.b
b. M1
c. M2
w
d. M3
w
Ans - b
...................................................
w
Solvency margin is related to
a. Banking companies
b. Insurance companies
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. Financial companies
d. non financial companies
co
Ans - b
...................................................
s.
Sensex is weighted index of
am
a. 30 stocks
b. 25 stocks
c. 20 stocks
d. 15 stocks
x
ne
Ans - a
...................................................
Following is not among indicative parameters for determining the profile and risk category
io
of a customer.
ot
a. Nationality
b. City of Residence
m
c. Country of Residence
d. Both Nationality & City of Residence
o
Ans - b
pr
...................................................
Organizations receiving donations will under policy on KYC/AML be categorized under:

nk
a. Low Risk Category

b. Either Low or Medium Risk Category
a
c. Medium Risk Category

d. High Risk Category
.b
e. Any of the above

w
Ans - d
...................................................
w
Which of the following is correctly stated in the context of collateral security in respect of
w
National Urban Livelihood Mission (NULM):
a. no collateral for loan up to Rs.10 lac

b. no collateral for loan up to Rs.5 lac
c. collateral can be obtained at discretion of the bank
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
d. banks can cover the eligible loans under CGTMSE guarantee
co
Ans - d
...................................................
Under National Urban Livelihood Mission (NULM), Urban Local Body (ULB) is required to
s.
send details of TASK force recommended applications along with their status to:
am
a. State Urban Livelihood Mission (SULM) on a monthly basis.
b. SLBc. on a monthly basis.
c. State Urban Livelihood Mission (SULM) on a quarterly basis.
d. SLBc. on a quarterly basis
x
ne
Ans - a
...................................................
Internal rating based approach under Basel 3 is covered under the rules relating to:
io
a. risk weighted assets in operational risk
ot
b. capital requirement for operational risk
c. capital fund required for credit risk
m
d. risk weighted assets in credit risk
Ans - d
o
...................................................
pr
To be eligible to issue commercial paper, a company must have minimum net worth of :
nk
a. Rs.1 cr
b. Rs.4 cr
c. Rs.10 cr
a
d. Rs.20 cr
.b
Ans - b
...................................................
w
Basic indicator approach under Basel 3 is used in respect of :

w
a. risk weighted assets in operational risk

w
b. capital requirement for operational risk

c. capital fund required for credit risk
d. risk weighted assets in credit risk
Ans - b
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is main function of asset reconstruction company or a securitization company created
under SARFAESI Act 2002:
co
a. Purchase of loan securities in NPA account
b. Sale of loan securities in NPA account
c. Purchase of NPAs from banks for recovery
s.
d Sale of NPAs to banks for restructuring
am
Ans – c
...................................................
Once a loan application approved by Task Force is sent to the bank by the Urban Local Body,
x
the bank is required to decide the application within ___,National Urban Livelihood
ne
Mission(NULM) :
a. 7 days
b. 10 days
io
c. 15 days
d. 21 days
ot
Ans - c
m
...................................................
A bank wants to file suit to recover a loan of Rs.19.30 lac. from an MSE unit. The suit can be
o
filed with:
pr
a. Lok Adalat
b. District Court
nk
c. High Court
d. Debt Recovery tribunal
a
Ans - d
...................................................
.b
Interest paid on housing loans is eligible for deduction from taxable income under which of
w
the following:
w
a. Section 24 of Income Tax Act

b. Section 88 of Income Tax Act
w
c. Section 80c. of Income Tax Act

d. Section 42 (2) of RBI Act
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which category of investment in SLR securities is held by the bank max up to 90 days:
co
a. held to maturity
b. available for sale
c. held for trading
d. any of these at bank discretion
s.
Ans - c
am
...................................................
Total interest earned by the bank minus total interest paid by the bank is called:
x
a. net interest margin
ne
b. net spread
c. operating profit
d. net interest profit
io
Ans - a
...................................................
ot
What is the limitation period to exercise right of Lien by the bank:

m
a. 30 days
b. one year from date of cause of action
o
c. 3 years from due date

pr
d. Law of Limitation not applicable on Lien
Ans - d
nk
...................................................
Which of the following crossing does not provide better title to the transferee than what the
a
transfer or had:
.b
a. account payee crossing

b. not-negotiable crossing
w
c. special crossing
w
Ans - b
w
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The payee of an order cheque, Mr. Suresh, writes on the backside of a cheque ‘pay to
Kamlesh only’ and signs below this. This is called:
co
a. facultative endorsement
b. sans recourse endorsement
c. partial endorsement
s.
am
Ans - d
...................................................
Under the provisions of Section 138 of Negotiable Instrument Act, after receiving notice
x
from the holder to pay the amount of dishonoured cheque, the drawer can make the
ne
payment maximum within ___ to avoid filing of suit by the holder:
a. seven days
b. fifteen days
io
c. thirty days
d. 45 days
ot
Ans - b
m
...................................................
Return of counterfeit currency received by the bank is to be sent to financial intelligence

o
unit, within:
pr
a. 7 days from the date of detection

b. 15 days from the date of tendering
nk
c. 7 days from close of each month

d. 15 days from close of each month
a
Ans - d
...................................................
.b
There is continuous increase in the value of US Dollar vis-à-vis Indian Rupee. In this context,
w
which of the following statement is correct:

w
a. exporter is loser
b. importer is loser
w
c. bank is loser
d. importer is gainer
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
In the context of non-performing advances, the term ‘out of order’ is used in the context of:
co
a. term loans
b. cash credit or overdraft
c. bills discounted
d. post-shipment advance`
s.
Ans - b
am
...................................................
A USD denominated bank draft is presented for payment to the bank and its cover has
already been received by the bank. The payment shall be made by using which of the
x
following:
ne
a. TT buying rate
b. Bills buying rate
c. TT selling rate
io
d. Bills selling rate
ot
Ans - a
...................................................
m
The minimum maturity period in respect of external commercial borrowing (ECB) should be
___, according to the amount:
o
pr
a. 2 years or 3 years
b. 3 years or 4 years
c. 3 years or 5 years
nk
d. 5 years or 7 years
Ans - c
a
...................................................
.b
Loan against duty drawback claims certified by the Custom Deptt. Is allowed, to which of the
following:
w
a. importers
w
b. exporters
c. foreigners visiting India
w
d. Indians visiting a foreign country
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
In case of Merchant Trade transaction (involving foreign exchange), the outlay of foreign
currency cannot be for a period of more than:
co
a. 2 months
b. 3 months
c. 4 months
s.
d. 6 months
am
Ans - c
...................................................
Documents evidencing import into India should be preserved by AD Category – I bank for a
x
period of _____ from the date of its verification.
ne
a. 3 months
b. 6 months
c. one year
io
d. three years
ot
Ans - c
...................................................
m
A loan of Rs.15 cr given to manufacturing company is not eligible for restructuring in respect
of which of the following:
o
pr
a. consortium advance
b. multiple banking arrangement advance
c. credit syndication advance
nk
d. single bank advance
Ans - d
a
...................................................
.b
If a company has availed loan for purchase of a heavy tanker, the registration is mandatory,
with which of the following (1) Regional Transport Authority (2) Registrar of Assurances (3)
w
Registrar of Firms (4) Registrar of Companies:

w
a. 1 to 4 all
b. 1 and 4 only
w
c. 4 only
d. 1 only
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following significant benefit is available to a bank, where the loan given to MSE
is guaranteed by Credit Guarantee Fund Trust for Micro and Small Enterprises (1) refinance
co
is available to the bank from SIDBI at nil rate of interest (2) no capital fund is required as risk
weight is zero (3) no provision is required to be made for the amount covered by the
guarantee:
s.
a. 1 to 3 all
b. 1 and 2 only
am
c. 2 and 3 only
d. 1 and 3 only
Ans - c
x
...................................................
ne
In a suit filed account, the insurance policy for securities charged to the bank is required to
be renewed. The insurance charges will be debited by the bank:
io
a. to loan account
b. to suspense account
ot
c. to profit and loss account
d. to any of these, as per the practice adopted by the bank.
m
Ans - c
...................................................
o
pr
A contract of Guarantee is
a. Primary contract
nk
b. secondary contract
c. principal contract
d. All a, b, & c.
a
Ans - b
.b
...................................................
w
Payment of invoked guaranteed amount should be made within ------------ unless there is a
court order
w
a. 24 hours
w
b. as per terms agreed upon in the guarantee

c. 48 Hrs`
d. 30 days.
Ans – b
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
For term loans the bank guarantee given for a period of
co
a. Equivalent to period of term loan – maximum 5 years
b. Not more than 10 years can be issued subject to in principal approval from CMD & in his
absence ED.
c. Both a & b
s.
am
Ans - c
...................................................
What is the maximum time limit for viability criteria in respect of restructuring of loan of an
x
infrastructure company:
ne
a. 5 years
b. 7 years
c. 8 years
io
d. 10 years
ot
Ans - c
...................................................
m
In which of the following deposit accounts, the interest payment is subject to TDS:
o
a. if interest on FDR payment exceeds Rs.10000 in a financial year

pr
b. any amount of interest payment, if it is an NRO account

c. any amount of interest payment, on NRO saving bank account
d. all the above
nk
Ans - d
...................................................
a
A usance bill of exchange falls due for payment on 15th August 2013, which is a public.
.b
holiday. The due date of the bill will fall on:

w
a. Aug 16, being next succeeding working day

b. Aug 14, being next preceding business day
w
c. Aug 14, being next preceding banking day

d. Aug 14, being, next preceding working day
w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The loan account of the borrower has been showing overdue amount. The guarantor has
some balance in his account. Whether it will be in order for the bank to exercise the right of
co
setoff.
a. bank can debit the account straightaway to recover the amount as liability of guarantor is
similar to the borrower
s.
b. bank can debit the account if the loan has been recalled from the guarantor and notice of
set off has been given
am
c. bank can debit the account if the loan has been recalled from the guarantor and borrower
and notice of set off has been given to both of them
d. the account is not in the same name and capacity. Hence debit cannot be made
x
Ans - b
ne
...................................................
B wants to nominate his wife and son for his saving bank account.
io
a. Bank will accept the nomination as they are his family members
b. Bank will accept if their share is decided before hand
ot
c. Bank will not accept as it is proposed to be made in favour of two persons
d. a and b
m
Ans - c
...................................................
o
pr
Tier II capital instruments such as Perpetual cumulative preference shares or Redeemable

non-cumulative preference shares or redeemable cumulative preference shares are to be
shown in ____ in the balance sheet:
nk
a. Schedule 3, for deposits

b. Schedule 4, for borrowing
a
c. Schedule 5, for other liabilities

d. Schedule 9, for loans and advances
.b
Ans - b
w
...................................................
w
As per Issuance of Non-Convertible Debentures (Reserve Bank) Directions, 2010, Non-

Convertible Debenture (NCD) means a debt instrument issued by a corporate (including
w
NBFCs) with maximum original or initial maturity ___ and issued by way of _____:
a up to one year, private placement

b. up to 6 months, private placement
c. up to one year, public. issue
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
d. up to one year, rights issue
co
Ans - a
...................................................
U/s 3 of Indian Majority Act, a minor is a person:
s.
a. Who has not completed the age of 16 years.
am
b. Who has not completed the age of 21 years
c. Who has not completed the age of 18 years
d. Who has not completed the age of 19 years
x
Ans - c
ne
...................................................
U/s 30 of Indian Partnership Act:

io
a. A major and minor can constitute a partnership firm.
b. A minor can be admitted to the firm for benefits only.
ot
c. A minor will not be personally responsible for the losses incurred.
d. Both (b) and (c) above.
m
Ans - d
...................................................
o
pr
Which of the following statement is true:
a. A company is a legal artificial person having a separate legal entity from its shareholders
nk
b. A company is having a perpetual succession

c. A company has a common seal
d. All the above
a
Ans - d
.b
...................................................
w
A Claused bill of lading means which of the following?

w
a. bill of lading issued with a clause

b. a bill of lading that indicates defective condition of goods
w
c. a bill of lading that does not contain any adverse noting

d. a bill of lading which issued as per clauses in the letter of credit
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
As per Section 269-T of Income Tax, the cash payment of FDR can be made for an amount:
co
a. up to Rs.20000 excluding interest
b. up to Rs.20000 including interest
c. less than Rs.20000 excluding interest
d. less than Rs.20000 including interest
s.
Ans - d
am
...................................................
A power of attorney has been executed in UK and it is to be used in Mumbai. The time for
payment of stamp duty is:
x
ne
a. within 3 months from date of entry into India
b. within 3 months from date of its execution
c. 3 months before the date when it is to used
d. it is not a valid document and cannot be used
io
Ans - a
ot
...................................................
m
With effect from July 01, 2010, the banks can determine their actual lending rates on loans
and advances with reference to:
o
a. prime lending rate

pr
b. base rate
c. benchmark prime lending rate
d. any of these
nk
Ans - b
...................................................
a
A cheque has already been negotiated by X to Y and by Y to Z. How many times more, this
.b
instrument can be negotiated?

w
a. Thrice
b. Twice
w
c. Once
d. No limit
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is the amount of Govt. of India and RBI notes that can be exported outside India:
co
a. Rs.5000
b. Rs.10000
c. Rs.25000
d. Rs.20000
s.
Ans - c
am
...................................................
Banks submit Suspicious Transaction Report (STR) to
x
a. RBI
ne
b. CBI
c. FIU
d. Directorate of Enforcement
e. Indian Banks Association
io
Ans - c
ot
...................................................
m
Shell Banks are
a. Permitted in India with strict rules

o
b. Permitted in India with limited operations

pr
c. Permitted in India on case to case basis

d. Not permitted in India
nk
Ans - d
...................................................
a
All categories of Foreign exchange earners can deposit----------% of their foreign exchange
earnings in their EEFC account
.b
a. 20
w
b. 50
c. 75
w
d. 100
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Cash transaction report is sent to
co
a. RBI
b. CBDT
c. CONTROLOING OFFICE
d. FIU-IND
s.
Ans - d
am
...................................................
To have a DP of Rs 3 lakhs in cash credit account (with limit Rs 3 lakhs with 25% of margin),
the minimum stock should be
x
ne
a. 3 lakhs
b. 4 lakhs
c. 5 lakhs
d. 6 lakhs
io
Ans - b
ot
...................................................
m
As per recent guidelines, if a locker is not operated for more than--------- year in case of High
Risk category customers, the bank can either advise him to operate or surrender the locker.
o
a. 3 years
pr
b. 5 years
c. 1 year
d. discretion of banks
nk
Ans - c
...................................................
a
As per recent guidelines, if a locker is not operated for --------- year in case of Medium Risk
.b
category customers, the bank can either advise him to operate or surrender locker.
w
a. 3 years
b. 5 years
w
c. 1 year
d. discretion of banks
w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Liberalized remittance is permitted for
co
a. capital account transactions
b. current account transactions
c. both 1 & 2
d. neither for both
s.
Ans - c
am
...................................................
Risk weight on residential housing loans above 20 lakhs is
x
a. 50
ne
b. 100
c. 100
d. 75
io
Ans - d
...................................................
ot
The documents executed by the company must be in conformity with its:

m
a. Articles of association
b. Memorandum of association
o
c. Resolution passed by Board

pr
Ans - c
nk
...................................................
Who will sign documents on behalf of the company while raising a loan:
a
a. Managing Director
.b
b. Executive Director
c. Authorised official whose name is mentioned in the resolution
w

w
Ans - c
...................................................
w
If the company has to create an equitable mortgage in favour of the bank for security of a
loan, who will come to the bank to deposit the original title documents of the property on
behalf of the company:
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
a. Managing Director
b. Executive director
co
c. Manager
d. An authorised official, as per resolution
Ans - d
s.
...................................................
am
U/s 125 of the Companies Act 1957, the filing of particulars of charge with Registrar of
Companies has to be done from date of creation of charge within:
a. 35 days
x
b. 37 days
ne
c. 60 days
d. 30 days
Ans - d
io
...................................................
ot
Maximum penalty under RTI act is
m
a. 100
b. 100000
c. 25000
o
d. 10000
pr
Ans - c
...................................................
nk
The minimum value for customer based Real Time Gross settlement transaction is
a
a. Rs 10000
b. Rs 1 Lakh
.b
c. Rs 2 Lakhs
d. Rs 5 Lakhs
w
Ans - c
w
...................................................
w
STRESS TESTING is associated with
a. Credit monitoring
b. Working capital assessment
c. Risk management
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
d. Customer service
co
Ans - c
...................................................
Interest payable on CRR balance is
s.
a. 0.01
am
b. 0.035
c. No interest
d. 0.005
x
Ans - c
ne
...................................................
Cash transaction report is to be submitted ......

io
a. 7 th of succeeding month
b. on or before 15 th of succeeding month
ot
c. last day of succeeding month
d. on or before 30 th April
m
Ans - b
...................................................
o
pr
As per RTI act, information is to be conveyed within
a. 30 days
nk
b. 60 days
c. 90 days
d. 15 days
a
Ans - a
.b
...................................................
w
Which of the following is correct

w
a. BCTT & SERVICE tax are applicable to Jammu &Kashmir

b. BCTT & SERVICE tax are not applicable to Jammu &Kashmir
w
c. BCTT is applicable for Jammu & Kashmir But not SERVICE TAX
d. Service tax is applicable for jammu & Kashmir but not BCTT
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is the floor level for CRR
co
a. 0.03
b. No floor level
c. 0.02
d. 0.01
s.
Ans - b
am
...................................................
Which of the following requirement relating to self-help group members under National
Urban Livelihood Mission (NULM), is not stated correctly:
x
ne
a. SHG to have minimum 5 members without any ceiling of the maximum
b. minimum 70% members in a group should be from urban poor families
c. SHG constituted under SJSRY scheme is also eligible
io
Ans - d
ot
...................................................
m
Which of the following is correct for project cost and amount of bank loan for a group,
under National Urban Livelihood Mission (NULM):
o
a. minimum project cost is Rs.10 lac. and bank loan is equal to project cost less 20% margin.
pr
b. minimum project cost is Rs.10 lac. and bank loan is equal to project cost less margin
decided by the bank.
c. maximum project cost is Rs.10 lac. and bank loan is equal to project cost less 20% margin.
nk
d. maximum project cost is Rs.10 lac. and bank loan is equal to project cost less margin
decided by the bank.
a
Ans - d
...................................................
.b
Banks have fixed the exposure norms for various banking transactions, say maximum loan
w
against shares, maximum loan to a borrower etc. This is part of which of the following:
w
a. risk management
b. asset liability management
w
c. selective credit control

d. all the above
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Under _______ the farming is carried on, in the regions where the rainfall is scanty i.e. less
than 50 Cm annually
co
a. Humid farming
b. irrigation farming
c. wet land farming
s.
d. dry land farming
am
Ans - d
...................................................
____ is the risk of loss arising from those contracts which are not legally enforceable or
x
documented correctly:
ne
a. liquidity risk
b. operational risk
c. reputation risk
io
d. legal risk
ot
Ans - d
...................................................
m
Holder of a cheque makes following alterations in a cheque. Which of these is not a material
alteration:
o
pr
a. A bearer cheque converted to order

b. General crossing converted to special crossing
c. Crossing a cheque
nk
d. All the above
Ans - d
a
...................................................
.b
You are working as incharge of locker section of the branch. A and his wife W have a locker
as either or survivor. Because of dispute, A asks the bank not to allow an operation by W. W
w
comes to operate the locker. You will:

w
a. Allow operations by W as instructions are either or survivor

b. Will not allow operations to W but will allow to A
w
c. Allow only joint operations as there is dispute between the customer

d. a or b
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A solicitor is having two accounts with the bank. One in personal name and other in clients
name. One Cheque is Presented in ‘clearing’ in clients account. In the meantime, Garnishi
co
Order is served on the solicitors’ account. Whether Bank will pay this cheque presented in
the clearing.
a. cheque will not be paid, as it is presented after receipt of the order
s.
b. cheque will be paid, as account is in the same name
c. cheque will be paid as order is in his personal name
am
d. cheque will be paid, since it relates to client account, which the solicitor has opened in
fiduciary capacity
Ans - d
x
...................................................
ne
The maximum settlement period in respect of which of the following is restricted to 2 hours
(a) RTGS (b) NEFT (c) ECS (d) MICR
io
a. a to d all
b. a to c only
ot
c. a and b only
d. c and d only
m
Ans - c
...................................................
o
pr
Funded debt to net worth ratio is :
a. Term liabilities/tangible net worth

nk
b. Term loan/tangible net worth

c. Outside borrowings/net worth
a
Ans - a
.b
...................................................
w
Both debt equity ratio and funded debt to net worth ratio are :
w
a. Liquidity ratios
b. Profitability ratios
w
c. Operating ratios
d. Leverage ratios
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Mr. D is having one overdraft account with us. He is also having three other accounts with
us, (namely) his personal Sb. Account, Joint account with his wife and one u/gship account
co
with his son. Bank can use right of set off in which of these accounts.
a. right is available for all the three accounts

b. right available in the joint account and Sb. account
s.
c. right available in u/gship account and personal Sb. account
d. right available in personal Sb. account
am
Ans - d
...................................................
x
Current ratio is :
ne
a. Fixed assets/current assets
b. Current liabilities/current assets
c. Bank borrowings/current assets
io
ot
Ans - d
...................................................
m
If the current ratio is 1.5 : 1 and current liabilities is Rs. 600, current assets figure would be:
o
a. Rs. 900
pr
b. Rs. 600
c. Rs. 750
d. Figure cannot be arrived at
nk
Ans - a
...................................................
a
Bank allowed an advance under KVI Sector. This will be classified as:
.b
a. micro enterprise irrespective of the amount of original investment in plant and machinery
w
b. micro enterprise if the investment in plant and machinery is within the ceiling for micro
enterprises
w
c. small enterprise
d. such advances are not priority sector advance
w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A bank has certain financial securities given by a customer and lying in safe custody account
and certain articles lying in locker, in addition to a saving bank account in the name of the
co
customer. The bank has an overdraft in the name of the same customer, who is not paying
the loan :
a. bank can use lien on the financial securities only.
s.
b. bank can use lien on the financial securities as well as on articles in locker
c. bank cannot use lien on the financial securities, but it is possible on locker and saving
am
bank account
d. bank can exercise its right of set off in case of saving bank account only.
Ans - d
x
...................................................
ne
As per exposure ceiling guidelines of RBI, the maximum exposure for a company engaged in
infrastructure activities is restricted to:
io
a. 15% of paid up capital
b. 15% of net worth
ot
c. 20% of net worth
d. 20% of capital fund
m
Ans - d
...................................................
o
pr
The objectives of the incorporation of the company are mentioned in:
a. Memorandum of association
nk
b. Articles of Association
c. Certificate of incorporation
a
Ans - a
.b
...................................................
w
The resolution to raise a loan from bank should have been passed:
w
a. In meeting of Board of Directors

b. In Annual general meeting
w
c. Through circulation
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
In case of genuine difficulty, the filing of particulars can be allowed by Registrar of
Companies by condoning delay till further period of:
co
a. 7 days
b. 10 days
c. 30 days
s.
d. No time limit
am
Ans - c
...................................................
For filing particulars, the following form is used:
x
ne
a. Form No.2
b. Form No.14
c. Form No.8 & 13
d. Form No.17
io
Ans - c
ot
...................................................
m
The registration of charge is deemed effective from the date of :
a. Registration
o
b. Date of creation charge (i.e. execution of documents)

pr
c. Opinion of courts differ

d. It is desirable to treat it from date of registration
nk
Ans - b
...................................................
a
In case, for any reason, the company or creditor fails to file the particulars.
.b
a. Bank will still remain a secured creditor

b. Bank will become unsecured creditor against liquidator
w
c. Bank can get it registered when it comes to its notice

w
Ans - b
w
...................................................
A HUF is governed by:

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. Joint Hindu Families Act 1883
c. Indian Partnership Act.
co
d. Hindu Law Act 1902.
Ans - d
...................................................
s.
Firm A has sale of 2000 and debtors 250. Firm b. has sale of 3000 and debtors 300. Which is
am
managing the recovery of its debts better.
a. Firm A as it has lower debtors at 250 only

b. Firm A
x
c. Firm B
ne
d. inadequate information to take a decision
Ans - c
...................................................
io
The term accrued, in financial parlance, means :
ot
a. what has been received or paid during a financial period

m
b. what has become due for receipt or payment during a financial period
c. what is outstanding for receipt or payment during a financial period
d. what is due for receipt or payment during a financial period but not received or paid
o
pr
Ans - b
...................................................
nk
A sub. standard loan account has been restructured with the provision that monthly
installment will begin with effect from Dec. 12, 2012. The borrower starts repayment from
Nov 12, 2012. The account will be categorized as standard accounts w.e.f. ____ if regular
a
repayment of the installments, is made:

.b
a. immediately
b. Dec 13, 2012
w
c. Nov 12, 2013

d. Dec 12, 2013
w
Ans - d
w
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The bank employees are expected to be in the branches 15 minutes before the beginning of
the customer service, on the recommendations of which of the following committees:
co
a Talwar Committee
b. Goiporia Committee
c. Rangarajan Committee
s.
d Jilani Committee
am
Ans - b
...................................................
What is the amount of eligible loan for guarantee cover under the Credit Risk Guarantee
x
Fund Trust for Low Income Housing operated by National Housing Bank:
ne
a. Rs.20 lac
b. Rs.15 lac
c. Rs.10 lac
io
d. Rs.5 lac
ot
Ans - d
...................................................
m
Service tax is be deposited with the Govt. by which of the following dates:
o
a. 5th of the month if manual and 6th of the month if electronic, from close of the month in
pr
which deducted
b. 6th of the month if manual and 5th of the month if electronic, from close of the month in
which deducted
nk
c. 7 days from date of deduction

d. 7 days from close of the month, in which deducted
a
Ans - a
...................................................
.b
Mr. Satish Kaushik, an officer with a public. sector bank committed certain irregularities
w
while discharging his duties as Incumbent Incharge at a rural branch. Which among the
following will not be considered a punishment, if the bank proceeds with disciplinary action:
w
a. warning and suspension

w
b. warning
c. suspension
d. censure
Ans – a
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
XYZ, a firm has constructed a coldstorage on the outskirts of a metro town by raising a loan
from Bank-B. Bank shall classify the loan under:
co
a. priority sector - SSI
b. priority sector – indirect finance to SSI
c. PS credit – indirect finance to agriculture
s.
d. Under PS credit – indirect finance to agriculture if it is to be used for storage of
agricultural produce
am
Ans - d
...................................................
x
An exporter has been allowed an adhoc. pre-shipment credit of Rs.25 lac. by the bank. On
ne
its regularly sanctioned limit, bank is charging interest rate of 2% above base rate. What
interest rate will be charged on the adhoc. amount:
a. Base rate + 1%
io
b. Base rate + 2%
c. Base rate + 3.%
ot
d. same as for regular export limit
m
Ans - d
...................................................
o
A cheque of Rs.5000 is issued on March 12, 2007. But it is dated as February 28, 2007. It is
pr
presented for payment on March 14, 2007. Such cheque is called ..... and the cheque is .....
a. stale cheque, returned

nk
b. post dated cheque, returned

c. ante-dated cheque, paid
d. invalid cheque, returned`
a
Ans - c
.b
...................................................
w
A short position refers to a position where ____ from a decline in the value of the
underlying.
w
a. losses arise
w
b. losses decline
c. gains arise
d. gains decline
Ans – c
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following is not part of the contingent liabilities of a company:
co
a. a suit has been filed against a company by another firm.
b. a claim has been made on the company by another firm but company has not
acknowledged it
c. company has given guarantee to secure the loan of its associate company
s.
d. company has given negative lien on its assets to secure a loan.
am
Ans - d
...................................................
Delhi Bank Ltd maintains a current account of a partnership firm named Reliance
x
Enterprises. The account is operated by both the partners of the firm singly. The bank
ne
receives a cheque of Rs. 38000, originally made for Rs.33000. Though the cheque is signed
by the 1st partner, the alteration in the cheque in the amount has been made by the 2nd
partner:
io
a. the cheque is materially altered due to which it cannot be paid
b. the payee would be told to get the confirmation of the 1st partner who had originally
ot
signed the cheque
c. the payment would be made to the payee as the alteration in the cheque is properly
m
authenticated by the drawer

d. the payment would be made for Rs.33000 instead of Rs.38000, if the payee is agreeable
to get that amount
o
pr
Ans - c
...................................................
nk
Which of the following accounts is not eligible for action by the bank under SARFAESI Act?
a. loan for purchase of tractor

a
b. loan with a balance of Rs.94355

c. loan against hypothecation of stocks
.b
d. loan against mortgage of a commercial property

w
Ans - b
...................................................
w
A bank customer has died testate. What does the term ‘testate mean’:
w
a. leaving legal heirs

b. leaving behind no legal heirs
c. leaving a will
d. not leaving a will
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Ans - c
...................................................
co
Where a guarantor makes payment of bank loan, all securities are required to be
transferred by bank to the guarantor, under which of the following:
s.
a. right of redemption
b. right of foreclosure
am
c. right of subrogation
d. right of appropriation
Ans - c
x
...................................................
ne
Model Bank maintains a current account of M/s Budhiraja Industries Private Limited for the
last 3 years. Recently one of their directors having powers to operate the bank account has
become insane and bank has, on its records, this information. A cheque dated about 5
io
months back, of Rs.23000, is presented in the account which is signed by the director who
has become insane recently. The cheque is returned unpaid, stating that the signatory of the
ot
cheque has become insane. When this fact comes to notice of the company, it questions the
decision of the bank to return the cheque and claims damages also:
m
a. bank is not liable as it has acted in the interest of the company

b. bank has on its record a notice issued by the company about the insanity due to which
o
the bank has acted in good faith

pr
c. bank has acted negligently as the director has signed the cheque as agent and due to his
insanity the cheque already signed by him should have been honoured
d. bank has acted negligently and it has ignored the notice received from the company
nk
regarding insanity
Ans - c
a
...................................................
.b
ABC, a firm has raised a cash credit limit of Rs.10 lac, which is guaranteed by Mr. X. The
nature of this guarantee is:
w
a. continuing guarantee
w
b. performance guarantee
c. specific. guarantee
w
d. deferred payment guarantee
Ans – a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Within the Bank the responsibility of overseeing and ensuring overall compliance with
regulatory guidelines on KYC/AML is assigned to a senior management official designated as
co
a. Chief Compliance Officer
b. Officer on special duty
c. Compliance Officer
s.
d. Principal Officer
am
Ans - d
...................................................
The violation of KYC principals will attracts penalties as per following Act
x
ne
a. Reserve Bank India Act
b. Banking Regulation Act
c. Prevention of Money Laundering Act
d. Both b & c
io
Ans - d
ot
...................................................
m
Bank’s code for customers was released by
a. RBI
o
b. SEBI
pr
c. BCSBI
d. IBA
nk
Ans - c
...................................................
a
While granting a loan to a public limited company, the bank requires the following
documents:
.b
a. Certificate of incorporation
w
b. Certificate of commencement of business

c. Memorandum and articles of association
w
d. All the above

w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A company is not a physical person. Hence cannot sign the document. How to get signed for
the company:
co
a. After obtaining a resolution from the Board of Directors, signatures of the authorised
official on the documents would be got and common seal of the company will be affixed to
these by some authorised official as per Board resolution.
s.
b. The documents to which the common seal of the company has not been affixed cannot
bind the company
am
c. By Managing Director of the Co.
d. By any Two directors of the Co.
Ans - a
x
...................................................
ne
One can be member of HUF:
a. By birth
io
b. By succession
c. By consent of coparceners
ot
m
Ans - a
...................................................
o
Members of an HUF are:

pr
a. All members of the family

b. Only male members
nk
c. Only major members of the family

a
Ans - a
...................................................
.b
Book building:
w
a. is used by stock exchanges for trading as it is more efficient than the traditional open
w
outcry system.
b. is used by speculators to artificially increase share prices.
w
c. is used in the public issue process for efficient price and demand estimation for the issuer
d. is used by bookies in horse racing.
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Name the odd one out:
co
a. ICRA
b. CIBIL
c. CARE
d. CRISIL
s.
Ans - b
am
...................................................
AD category1 can repatriate proceeds of FCNR to third parties if
x
a. authority is given by account holder
ne
b. bank is satisfied about bonafide transfer
c. both a & b
d. can not repatriate
io
Ans - c
...................................................
ot
A will executed can be registered

m
a. within 3 months of its creation

b. within 4 months of its creation
o
c. within 3 days of its creation

pr
d. if desired (not compulsory) at any time after creation
Ans - d
nk
...................................................
XOS FORM IS
a
a. Application for drawal of Foreign Exchange

.b
b. Approvals of Trade Credit

c. Form for statement for outstanding export bills
w
d. Application for drawal of Foreign Exchange

w
Ans - c
...................................................
w
The term "Blue chip " means
a. govt. securities printed in blue and are readily encashable with RBI
b. preference shares of joint stock companies
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. shares of progressive, soundly run public limited companies with excellent dividend
record
co
d. shares initially allotted to promoter directors
Ans - c
...................................................
s.
“Bulls & Bears” is used in
am
a. credit rating
b. vegetable markets
c. stock exchange
x
d. risk management
ne
Ans - c
...................................................
io
A bill drawn in Delhi issued in favour of a trader in Iran and payable in Madras is:
ot
a. An accommodation bill
b. An inland bill
m
c. A foreign bill
o
Ans - b
pr
...................................................
Your branch receives a cheque in which amount in words and figures differ. Your ledger
nk
keeper insists on payment of this cheque. The bank should make the payment for amount:
a. In words
a
b. In figures
c. In words or figures whichever less
.b
d. Cheque should be returned.

w
Ans - a
...................................................
w
On July 01, 2015 your branch receives a cheque-dated 1.11.2014 issued by one of your very
w
valuable customer Mr. Prem who normally maintains a balance of Rs.5.00 lakh in his saving
bank account. The bank would:
a. Pay the cheque

b. Pay and get confirmation of drawer
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. Refuse payment of stale cheque
co
Ans - c
...................................................
s.
When a bill matures on a public holiday, the maturity date of the bill falls on:
am
a. Next succeeding working day
b. Next preceding business day
c. Both the above
x
ne
Ans - b
...................................................
A cheque in favour of Lord Krishna or order is presented for payment:

io
a. Bank can pay
ot
b. Bank should refuse to pay because either it can be paid only to drawer or it can be
credited to the trust account in the name of the Lord Krishna
m
c. Bank can pay to the presenter

o
Ans - b
pr
...................................................
Your branch receives an electronic image of a cheque for payment. What should the branch
nk
do?
a. Should not pay

a
b. Should pay only if the instruments has also got the digital signature .
c. Should pay on indemnity of the drawer.
.b

w
Ans - b
...................................................
w
A issued a cheque in favour of Ram or order but before handing it over to Ram he cancelled
w
`or the order to’ and authenticated the cancellation under full signatures. Now the payment
of the cheque can be made to :
a. Payee or to the holder

b. Payee or his order
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. Payee only
co
Ans - c
...................................................
s.
A minor presents a cheque at the counter for payment but due to insufficient funds the
bank refuses to make payment. Minor insists on a written returning memo. In this case:
am
a. Bank is bound to give cheque return memo.
b. Bank need not do so
c. Bank can do at its discretion
x
ne
Ans - a
...................................................
io
The project cost under National Urban Livelihood Mission (NULM), in case of individual
borrowers is restricted to:
ot
a. Rs.50000
m
b. Rs.1 lac
c. Rs.2 lac
d. Rs.5 lac
o
pr
Ans - c
...................................................
nk
Under National Urban Livelihood Mission (NULM), which of the following statement is
correct regarding repayment period and moratorium period:
a
a. repayment period 3 to 7 years and moratorium as per bank discretion

b. repayment period 3 to 7 years and moratorium 6 to 18 months
.b
c. repayment period 5 to 7 years and moratorium 6 to 18 months

d. repayment period 5 to 7 years and moratorium as per bank discretion
w
Ans - c
w
...................................................
w
On payment of brokerage, TDS is to be deducted when the amount of total payment in a

financial year:
a. is Rs.5000 or more
b. is more than Rs.5000
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. is Rs.2500 or more
d. is more than Rs.2500
co
Ans - b
...................................................
s.
Corporate Bank released a loan of Rs.35 lac. to a partnership firm for purchase of fixed
assets and for meeting working capital limits. The loan documents were signed by three
am
partners at three different places on January 12, 2013, January 26, 2013 and January 25,
2013. Which among these will be the starting point for the purpose of validity of the
documents for limitation purpose:
x
a. documents are not valid as these have been executed at different places
ne
b. documents are not valid as these have been executed on different dates
c. limitation begins from January 12, 2013
d. limitation begins from January 27, 2013
io
Ans - d
...................................................
ot
Which of the following is correct statement regarding collateral security for education loans
m
up to Rs.4 lac?
a. collateral security cannot be taken mandatorily

o
b. collateral security can be exempted at the discretion of the bank concerned

pr
c. collateral security can be obtained if the parents are not becoming coborrowers
d. collateral security can be taken, if the education is abroad
nk
Ans - a
...................................................
a
A Karta of HUF has an implied authority to:

.b
a. Delegate his authority

b. To raise loan & pledge securities
w
c. To raise loan and create charge on family property for family business
w
Ans - c
w
...................................................
Any action of Karta makes the other co-parceners liable:
a. to the extent of their share in the joint property

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. 50% if there are three persons
c. 75% if there are four persons
co
d. no ceiling
Ans - a
...................................................
s.
A trust is formed for the benefit of :
am
a. A person
b. A group of persons
c. The family members
x
d. Any of the above
ne
Ans - d
...................................................
io
The bank requires to open an account in the name of a Trust: as per the
ot
a. Gift deed
b. Probate
m
c. Trust deed
o
Ans - c
pr
...................................................
If a sole rural branch is to be shifted by a bank within the same block, the permission of
nk
which of the following is required
a. Distt Administration
a
b. Distt. Consultative committee

c. State Level Bankers’ Committee
.b
d. State govt. concerned

w
Ans - b
...................................................
w
A fraud of Rs.20.60 cr has taken place with the connivance of staff of the bank. It will be
w
reported to:
a. State police
b. RBI within 3 weeks by way of a DO letter
c. Anti-corruption Bureau of CBI
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
d. Economic Offences Wing of State Police
co
Ans - c
...................................................
The maximum loan that can be granted against shares to an individual is restricted to:
s.
a. Rs.10 lac for demat shares and Rs.20 lac for physical shares
am
b. Rs.10 lac for demat shares and Rs.10lac for physical shares
c. Rs.20 lac for demat shares and Rs.10 lac for physical shares
d. Rs.20 lac for demat shares and Rs.20 lac for physical shares
x
Ans - c
ne
...................................................
Which of the following approach is not related to operational risk :

io
a. Basic. indicator approach
b. Standard Approach
ot
c. Internal Rating Based Approach
d. Advance Measurement Approach
m
Ans - c
...................................................
o
pr
Which ratio out of the following is not appropriately matched
a. quick ratio – immediate liquidity

nk
b. debt equity ratio – extent of loans within the total liabilities

c. current ratio – liquidity position
d. debt service coverage ratio – fixation of TL instalment
a
Ans - b
.b
...................................................
w
What time period is available with the customer to make appeal to the appellate authority
against the Award of the Ombudsman:
w
a. within 30 days of date of the award

w
b. within 45 days of date of the award

c. within 30 days of date of receipt of the award
d. within 60 days from date of award
Ans – c
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A bill of lading is presented by M/s Bangalore Exports Limited to their bank, Universal Bank,
for negotiation along with other necessary documents. The bill bears remarks regarding
co
some defect in the packing of the goods. Which of the following kinds of bill of lading it
would be called
a. clean bill of lading
s.
b. invalid bill of lading
c. straight bill of lading
am
d. claused bill of lading
Ans - d
...................................................
x
ne
For which of the following category of loans the risk weightage for Capital Adequacy ratio
purpose is 125%:
a. exposure to capital market

io
b. exposure to real estate
c. loans to strategically important nondeposit taking NBFCs
ot
d. exposure to NPA account in housing finance loans
m
Ans - a
...................................................
o
Banks are required to implement the award and inform the Ombudsman with in ___ from
pr
___:
a. 30 days, date of award

nk
b. 30 days, date of customer acceptance

c. 30 days,, date of receipt of award
d. 30 days, date of receipt of customer acceptance
a
Ans - d
.b
...................................................
w
The legal status of a nominee in case of safe custody of articles account is that of:
w
a. agent of the locker holder

b. agent of the legal heirs of locker holder
w
c. trustee for the locker holder

d. trustee for the legal heirs
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Your branch in Chandigarh decides to sanction working capital limits to a public. limited
company having registered office in Chandigarh and proposes to obtain equitable mortgage
co
of immovable property of the company located in Jaipur. The registration of the particulars
of the mortgage will be required to be done:
a. with the Registrar of Companies having jurisdiction over Chandigarh
s.
b. with the registrar having jurisdiction over Jaipur
c. with both the registrars
am
d. with any of the registrars
Ans - a
...................................................
x
ne
Under Basel II, for calculation of risk weighted assets or for determining amount of capital
charge, which of the following approach is used for credit risk and operational risk :
a. credit risk – standard approach, operational risk – standard approach

io
b. credit risk – standard approach, operational risk – basic. indicator approach
c. credit risk – internal rating based approach, operational risk – basic. indicator approach
ot
d. credit risk – basic. indicatory approach operational risk – internal rating based approach
m
Ans - b
...................................................
o
In case of payment of cheque with an endorsement, the paying banker gets protection only
pr
when:
a. signatures of the endorser are not forged

nk
b. endorsement is not without consideration

c. endorsement appearing on the instrument is regular
d. all the above
a
Ans - c
.b
...................................................
w
Which of the following groups, can become a partners in a partnership firm:

w
a. a private company, a public. company, a partnership firm, an NBFC

b. a public. company, an HUF, an individual person, a private company
w
c. an individual person , a private company, a public. company, a partnership firm

d. a private company, a public. company, a partnership firm, a minor
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A power of attorney executed abroad and attested by Notary public. in that country:
co
a. Is valid in India also if stamped in India within 3 months from date of entry into India.
b. Not valid in India unless attested in India
c. Valid if attested in India also by Chief Justice
d. a to c
s.
Ans - a
am
...................................................
A certificate of deposit is:
x
a. issued at face value
ne
b. issued at discount to face value
c. issued at a discount to maturity value
io
Ans - b
...................................................
ot
A bank wants to bring change in the terms and conditions relating to saving bank account.
m
The bank should inform the customer about this ____ month / days before implementation
of the change:
o
a. 2 months
pr
b. 45 days
c. one month
d. 15 days
nk
Ans - c
...................................................
a
A bill dated 1.1.2012 is payable 2 months after sight and it was sighted on 15.01.2012, but
.b
accepted on 18.01.2012. The due date for payment would be:

w
a. 15.03. 2012
b. 18.03. 2012
w
c. 17.03. 2012
d. 21.03.2012
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
As per KYc. guidelines, the suspicious transactions’ report is to be submitted
co
a. within 3 days of close of the month
b. within 7 working days of date of confirmation of suspicion
c. within 3 days of date of date of confirmation of suspicion
d. within 15 days of close of the month
s.
Ans - b
am
...................................................
The minimum amount that can be remitted is Rs.2 lac, for which of the following electronic.
payment systems:
x
ne
a. ECS
b. RTGS
c. NEFT
d. Nepal Remittance Scheme
io
Ans - b
ot
...................................................
m
In a public. limited company, maximum and minimum no. of shareholders is:
a. 50 and 10
o
b. No limit and 7
pr
c. 100 and 2
d. 1000 and 100
nk
Ans - b
...................................................
a
What is the period for preservation of documents obtained while opening of deposit
accounts :
.b
a. 2 years
w
b. 5 years
c. 8 years
w
d. 10 years
w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The balance in hand of a particular currency due to sale and purchase thereof at any time of
the day, is called
co
a. position of foreign currency
b. closing balance of foreign currency
c. day position
s.
d. day-light position
am
Ans - d
...................................................
The base rate is required to be reviewed by banks at least ___:
x
ne
a. once in a month
b. once in a quarter
c. once in a half year
d. once in a year
io
Ans - b
ot
...................................................
m
In which of the following mortgages, the recovery of the loan is from income of property:
a. simple mortgage
o
b. mortgage by conditional sale

pr
c. usufructuary mortgage
d. equitable mortgage
nk
Ans - c
...................................................
a
In PM Employment Generation Program, the maximum project cost in case of

manufacturing units is restricted to:
.b
a. Rs.5 lac
w
b. Rs.10 lac
c. Rs.25 lac
w
d. Rs.50 lac
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Ram Lal and Sons, HUF, is having current account operated by Karta, who dies:
co
a. Operations will be stopped and amount paid to legal heir
b. Eldest among surviving co-parceners would become Karta automatically and operate the
account, if major.
c. HUF would be dissolved
s.
am
Ans - b
...................................................
The liability of members of HUF is
x
ne
a. Limited
b. Limited to the extent of their shares
c. Unlimited
io
Ans - b
ot
...................................................
m
Trusts are governed by:
a. Indian Succession Act

o
b. Negotiable Instruments Act.

pr
c. Indian Trust Act

nk
Ans - c
...................................................
a
A non private charitable trust is registered with:

.b
a. Registrar of Trusts
b. Register of Societies
w
c. Registrar of Companies
d. Commissioner of Charity
w
Ans - d
w
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A bank is having an account in the name of a trust with four trustees and they want to
authorise one of them to sign on their behalf. In such circumstances:
co
a. Letter of authority must be signed by all
b. Letter of authority should be consented by the Commissioner of charity.
c. The authority would be valid when cheques are drawn only for the achievements of the
s.
objectives of trust
d. If trust deed provides for such an authority, it can be accepted.
am
Ans - d
...................................................
x
For making a reference under CDR2 mechanism, the consent of following group of banks is
ne
required
a. bank having 20% share by value

b. borrower having support of a bank with 20% share by value
io
c. majority of banks having 60% share by value and 75% no. of banks
d. majority of banks with 75% share by value and 60% by no. of banks
ot
Ans - d
m
...................................................
Under liberalized foreign exchange remittance scheme, what is the maximum amount that
o
can be remitted
pr
a. $ 200000
b. $ 150000
nk
c. $ 125000
d. $ 100000
a
Ans - c
...................................................
.b
Which among the following is not true with regard to realisation of export proceeds by the
w
exporter in India from date of shipment:

w
a. normal exporters 9 months

b. status holders 9 months
w
c. warehouse exporters 15 months

d. units in special economic. zones – no time limit
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
With a view to affect the money supply
co
in the economy, RBI resorts to Open market operations, which mean:
a. Sale/purchase of securities
b. Sale/purchase of govt. security
c. Sale/purchase of govt. securities by RBI
s.
d. all the above
am
Ans - c
...................................................
Which group of risk is taken care of by Real Time Gross Settlement.
x
ne
a. settlement risk and liquidity risk
b. systemic. risk and liquidity risk
c. settlement risk and systemic risk
d. liquidity and market risk
io
Ans - c
ot
...................................................
m
What is Firewall technology:
a. Technology used in putting off industrial fires

o
b. Program to protect a network from outside intrusion

pr
c. Computer program that becomes cause of virus attack

nk
Ans - b
...................................................
a
Which of the following facility cannot be allowed to a blind person (i.e. a visually impaired
person).
.b
a. cheque book facility in his Sb. account

w
b. ATM facility
c. locker facility
w

w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A kite flying transaction represents which of the following:
co
a. when overdraft is allowed by a bank to a firm
b. when additional loan is allowed by a bank to a firm to cover the amount of irregularity in
the account
c. when a bill is drawn without considerationby seller of goods on buyer of good.
s.
d. when loan is allowed for low amounttransaction
am
Ans - c
...................................................
A bank branch wants a letter to be written to its Head Office justifying its failure to achieve
x
the budgets for profits and quality of assets. Which among the following software will be
ne
used to write this letter:
a. MS Excel
b. MS Excess
io
c. MS Power Point
d. MS Word
ot
Ans - d
m
...................................................
Which of the following account can be opened by NRI, jointly with resident Indian
o
pr
a. Resident Foreign Currency Account

b. Foreign Currency non-resident account
c. Non-resident external rupee account
nk
d. none of the given options
Ans - d
a
...................................................
.b
A bank sold more foreign currency than it purchased during a particular day. The situation
would be known as:
w
a. over-bought position
w
b. short position
c. long position
w
d. overnight position
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A issues a cheque in favour of B on 1.7.2015 but forgets to fill in the date. B presents the
cheque for payment on 15.7.2015 filling the date as 10.07.2015. The bank will:
co
a. Pay the cheque
b. Bank will not pay the cheque
c. Bank will hand over the cheque to the police
s.
am
Ans - a
...................................................
Payment of a cheque is not affected by:
x
ne
a. Death of the payee
b. Death of the drawer
c. Insolvency of the drawer
io
Ans - a
ot
...................................................
m
A opened a current account on 10.7.2015 and obtained cheque book the next day and
issued a cheque in favour of B on 14.7.2015 mentioning the date as 1.7.2015. Cheque is
presented on 20.7.2015. The bank in this case can:
o
pr
a. Pay the cheque

b. Refuse the payment \Contact the account holder
c. Contact the account holder
nk
Ans - a
a
...................................................
.b
A cheque-dated 29.2.2015 is presented on 28.2.2015. The bank should:

w
a. Pay the cheque

b. Refuse the payment of post-dated cheque
w
c. Contact the drawer

w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A the customer of the bank authorises ‘B’ to receive the payment from his account on a
plain paper. He comes to bank and demands money:
co
a. Is bound to make payment and obtain stamped receipts as in NI Act there is no provision
as to the type or form to be used for demanding money.
b. Bank would refuse the payment.
s.
c. Bank would advise drawer to get a chequebook issued.
am
Ans - a
...................................................
x
The Bank can make payment of cheque even after receiving notice of the drawer for:
ne
a. For criminal liability
b. For monetary liability
c. For both the above
io
ot
Ans - c
...................................................
m
A issues a cheque in favour of B and also writes on face of the cheque that it is valid for
eight months. Bank will:
o
pr
a. Pay the cheque within 8 months

b. Not pay if presented after 3 months
c. Will not pay the cheque
nk
Ans - b
a
...................................................
.b
You receive a cheque, which is issued, by one of your customers; in favour of a very reputed
limited company whose account you trying to take over from other bank. What will you do
w
with this cheque? :

w
a. Pay if it is bearer
b. Not pay across the counter
w
c. Pay if manager is satisfied

Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Y's current account is over drawn by Rs 3500/-.The bank can exercise right of setoff against
co
a. credit balance in the partnership account where y is a partner
b. cash deposited by y for buying a DD
c. credit balance in the account of a minor with y as Guardian
4]credit balance in the account of y maintained with another branch of the same bank
s.
Ans - d
am
...................................................
KYC has introduced in banks with a view to curtail
x
a. Tax evasion
ne
b. Corruption
c. Money laundering
d. Non performing asset
e. None of these
io
Ans - c
ot
...................................................
m
In an account of joint trustee, on the death of one of the trustees:
a. Bank account will be operated upon by surviving trustees.

o
b. Bank will not permit operations unless it is specifically mentioned in the trust deed
pr
c. Surviving trustees can operate the account if bank permits

nk
Ans - b
...................................................
a
A trustee can raise a loan against the mortgage of property if:

.b
a. Trust deed permits him to do so

b. Trust deed can not have conditions to the contrary
w
c. Trustee can stand as guarantor

w
Ans - a
w
...................................................
A contract with a married woman is :
a. Invalid
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. Unlawful
c. Lawful
co
d. Should be ignored
Ans - c
...................................................
s.
The husband is not responsible for a loan raised by a married woman, the exception to this
am
rule is:
a. When consent of the husband was taken before granting the loan
b. When loan had been granted for maintenance of the wife
x
c. Both (a) and (b)
ne
Ans - c
...................................................
io
Mrs. x who maintained a safe deposit locker had expired and Mr x husband of her produces
ot
a power of attorney executed in his favour by Mrs x authorizing him to operate the locker
during her life time or even after her demise and request the bank to allow him to take
m
contents of locker.
a. He may be allowed
o
b. since power attorney is not considered for operation of locker he will not be allowed
pr
c. authority to operate the locker comes to an end on the death of Mrs x.

d. As x is the legal heir and also holding the power of attorney ,he can be allowed
nk
Ans - c
...................................................
a
A bank grants a loan of Rs 30000/-to X and obtains a demand promissory note and forgets
to affix revenue stamp by oversight. The account has become sticky and bank wants to file a
.b
suit for recovery of the amount on the strength of the demand promissory note.
w
a. Revenue stamp should be affixed and crossed before filing the suit
b. ten times the value of the stamp can be paid and suit can be filed.
w
c. The court has the power to condone the omission on being satisfied about the cause of
omission.
w
d. Omission can not be condoned
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
How many maximum members can be there in a private company(other than one person
company) as per company act 2013
co
a. 50
b. 100
c. 200
s.
d. No limit
am
Ans - c
...................................................
What is the limit on number of partners in a partnership firm imposed by Companies act
x
2013
ne
a. 10
b. 20
c. 50
io
d. 100
ot
Ans - d
...................................................
m
The hirer of a safe deposit locker reports that the loss of key of the locker.
o
a. he will be issued a duplicate key on executing an indemnity bond

pr
b. he will be advised to lodge FIR with police authorities and thereafter it will be broken
open in the presence of police inspector and a witness
c. the safe will be broken open by the representative of the manufacturer in the presence of
nk
hirer
d. he has to surrender the locker
a
Ans - c
...................................................
.b
In terms of which ACT no Person other than RBI can draw a BE or PN payable to bearer on
w
demand
w
a. SEC 31 of RBI Act

b. SEC 31 of Bract
w
c. SEC 31 of N.I act

4]sec 31 of contract act
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Under National Urban Livelihood Mission (NULM), the following statement is not correct in
relation to claim for subsidy:
co
a. subsidy claim is to be sent to Urban Local Body
b. subsidy claim is to be sent on monthly basis
c. subsidy claim to be paid to bank on quarterly basis
s.
d. if subsidy claims of banks are not settled for 3 months, the SLBc. can stop the scheme
temporarily
am
Ans - d
...................................................
x
Under National Urban Livelihood Mission (NULM), additional interest subsidy is available for
ne
prompt payment. Find which one is correct out of the following:
a. prompt payment subsidy is available for women self-help group only

b. prompt payment subsidy is available at 3%
io
c. prompt payment means when the due amount is repaid within 30 days of due amount in
case of term loan
ot
d. outstanding balance is not more than the sanctioned limit or DP
m
Ans - d
...................................................
o
Bank has allowed two housing loans of Rs.10 lac. and Rs.25 lac. It has also allowed loan to a
pr
dealer of fertilizers. The accounts are in standard category.The provision will be:
a. 0.4% in all accounts

nk
b. 0.25% on loan to dealer and 0.4% other accounts

c. 0.25% on loan to dealer, 1% on house loan of Rs.25 lac. and 0.4% other accounts
d. 0.25% in all accounts
a
Ans - a
.b
...................................................
w
The Attachment order will be applicable only when the banker and customer would be
having following relationship:
w
a. Trustee and beneficiary

w
b. Principal and agent

c. Bailor and bailee
d. Debtor and creditor
Ans – d
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following is called revenue deficit in the Central Govt.’s budget exercise ?
co
a. total receipts less total expenses
b. total payments less total revenue
c. revenue receipts less revenue payment
d. capital receipts less capital payment
s.
Ans - c
am
...................................................
If the bank is to square the oversold position and the rates of exchange are declining at that
time, the bank:
x
ne
a. gains
b. loses
c. it may gain or may lose
d. there is not change
io
Ans - a
ot
...................................................
m
U/s 125 of the Companies Act 1956, the filing of particulars of charge with Registrar of
Companies has to be done from date of creation of charge within:
o
a. 35 days
pr
b. 37 days
c. 60 days
d. 30 days
nk
Ans - d
...................................................
a
A proprietorship concern has net profit of Rs.20 lac, depreciation Rs.5 lac. and annual
.b
interest payable on long term liabilities Rs.5 lac. Its DSCR is 2. What is the amount of annual
instalment of the long term liabilities ?
w
a. 15 lac
w
b. 12 lac
c. 10 lac
w
d. 8 lac
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following accounts can be opened by a non-resident, who has permanently
returned to India recently:
co
a. NRE account
b. FCNR account
c. NRO Account
s.
d. Resident Foreign Currency account
am
Ans - d
...................................................
Bank Z is selling 3rd party products and gets commission for that. It faces, which of the
x
following type of risk:
ne
a. reputation risk
b. settlement risk
c. operational risk
io
d. liquidity risk
ot
Ans - c
...................................................
m
A complaint has been rejected by the Ombudsman. The customer:

o
a. cannot file suit in a court of law

pr
b. can file suit in a court against

Ombudsman
c. can appeal within 45 days to Appellate Authority
nk
d. can appeal within 30 days of date of receipt of information about rejection
Ans - d
a
...................................................
.b
Beyond the minimum amount of Rs.1 lac. for a CD, it can be issued in the multiple of Rs.:
w
a. 10 lac
b. 5 lac
w
c. 1 lac
d. Rs.0.5 lac
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Commencement of employees’ working hours should be 15 minutes before the
commencement of business hours. Which of the following committees gave these
co
recommendations ?
a. Jankiraman Committee
b. Talwar Committee
s.
c. M Narasimham Committee
d. Goiporia Committee
am
Ans - d
...................................................
x
On which of the following dates, Hindi was declared Official Language of the Union, due to
ne
which Hindi Diwas is observed on that day?
a. January 26, 1949

b. August 15, 1950
io
c. September 14, 1949
d. January 26, 1956
ot
Ans - c
m
...................................................
A contract is entered between an exporter and importer to exchange foreign currency

o
flows. This is known as:

pr
a. arbitrage
b. swap
nk
c. forward contract
d. futures
a
Ans - b
...................................................
.b
Corporate Debt Restructure (CDR) is applicable to which of the following types of accounts:
w
a. Standard and all NPA accounts

w
b. BIFR accounts and all irregular accounts

c. Standard, sub-standard & doubtful a/cs
w
d. misappropriation and willful defaulter a/cs
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A customer hands over some shares to the bank to sell them on a particular price and the
bank takes the shares into its possession. For its NPA loans:
co
a. the bank can exercise the right of general lien on these shares
b. the bank can have a particular lien on these shares
c. the bank can have negative lien on these shares
s.
d. the bank can have no lien on these shares
am
Ans - d
...................................................
Subsidy under the SJSRY scheme is available at___% of project cost:
x
ne
a. 5%
b. 10%
c. 25%
d. 30%
io
Ans - c
ot
...................................................
m
Rules regarding preservation of records in bank are framed by __ under __ Act:
a. RBI, RBI Act

o
b. Govt., RBI Act

pr
c. Central Govt., Banking Regulation Act

d. RBI, Banking Regulation Act
nk
Ans - c
...................................................
a
Cash Reserve Ratio is maintained under the provisions of which of the following:
.b
a. Section 42 of RBI Act

b. Section 24 of Banking Regulation Act
w
c. Section 42(1) of RBI Act

d. Section 42(2) of RBI Act
w
Ans - c
w
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following kinds of charges is created on the book debts while allowing cash
credit advances, by banks:
co
a. Pledge
b. Assignment
c. Hypothecation
s.
mortgage
am
Ans - b
...................................................
You are approached by your client for guidance, as to which combination of current ratio
x
and debt-equity ratio is generally acceptable to the bankers. Your answer should be:
ne
a. current ratio 1.7:1 and Debt equity ratio 4:1
b. current ratio 1.33 and Debt equity ratio 2:1
c. current ratio 1.17 & debt equity ratio 1.5:1
io
d. current ratio 1:1 and debt equity ratio 1:1
ot
Ans - b
...................................................
m
Debt equity ratio of a firm is 2:1 with long term outside liabilities of Rs.20 lac. In the year it
incurs loss of Rs.2 lac. What shall be the tangible networth of the firm after this loss at the
o
end of theyear.
pr
a. Rs.5 lac
b. Rs.6 lac
nk
c. Rs.8 lac
d. Rs.10 lac
a
Ans - c
...................................................
.b
In case a notice has to be served on a company it should be sent at:

w
a. Factory office
w
b. Corporate office
c. Registered office
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A bank grants a loan to a married woman which she is unable to repay:
co
a. Bank can file suit against husband
b. Woman is personally responsible
c. None of the above
d. Both (a) and (b)
s.
Ans - b
am
...................................................
After marriage of a Hindu Women, her right of streedhan
x
a. remain unaffected
ne
b. remain unaffected if her parents allow
c. remain unaffected if in-laws permit
d. get extinguished
io
Ans - a
...................................................
ot
Any contract entered with a Pardanashin lady is :

m
a. Valid contract
b. Voidable contract
o
c. Void contract
pr
d. Avoidable contract
Ans - b
nk
...................................................
What is not true in respect of nomination of following types of accounts:

a
a. in joint deposit accounts only one nomination is allowed

.b
b. in joint locker accounts, the no. of nominees can be equal to no. of locker holders
c. in joint safe deposit of articles, the no.of nominees can be one
w

w
Ans - c
...................................................
w
Banks prefer giving credit facilities to their borrowers in the form of bills purchasing or
discounting, because :
a. the loan can be recovered from the drawee also by filing suit
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. the loan is self-liquidating
c. the amount of loan can be very easily determined
co
d. the loan is of short term nature
Ans - b
...................................................
s.
A firm has a debt equity ratio of 3:1 with a tangible net worth of Rs.20 lac. Its accountant
am
accounts term loan instalment payable during 12 months from balance sheet for Rs.10 lac.
as part of the current liabilities while working out the debt-equity ratio. What shall be the
debt-equity ratio when the said instalment is considered as part of the term loan ?
x
a. 2.5:1
ne
b. 3.5:1
c. 4.0:1
d. 4.5:1
io
Ans - b
...................................................
ot
When a loan is given by a bank on the security of railway receipt (RR) or goods receipt (GR)
m
issued by a transport company, which type of charge is created
a. pledge
o
b. lien
pr
c. hypothecation
d. assignment
nk
Ans - a
...................................................
a
Which among the following documents when executed by a bank or any of its customers in
favour of bank or otherwise, has different stamp duty (excluding the State of J&K) in
.b
different places i.e. States:

w
a. Proxy Letter
b. Letter of credit
w
c. Promissory note
d. Acknowledgement of debt
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which among the following ratios relates to solvency of a firm, particularly the capability to
meet its long term liabilities, regularly, whenever falling due for payment:
co
a. debt equity ratio
b. debt service coverage ratio
c. debtor’s velocity ratio
s.
d. current ratio
am
Ans - b
...................................................
Listed companies are required to disclose their annual audited results within ___ from close
x
of the financial year:
ne
a. 15 days
b. 30 days
c. 45 days
io
d. 60 days
ot
Ans - d
...................................................
m
Under education loan scheme, what is the amount of loan, up to which collateral security is
exempted
o
pr
a. Rs.2 lac in general cases

b. Rs.5 lac for education in India
c. Rs.10 lac for education abroad
nk
d. Rs.7.50 lac in all cases
Ans - d
a
...................................................
.b
A bank has a right called....to combine two or more accounts (at least one of which has
debit balance and another has credit balance) in the same capacity,of customer:
w
a. Right of subrogation
w
b. Right of adjustment
c. right of lien
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is the minimum capital adequacy ratio for a bank in India as prescribed by RBI under
Basel II:
co
a. 11%
b. 10%
c. 9%
s.
d. 8%
am
Ans - c
...................................................
What is the maximum time available to a customer for lodging complaint to Ombudsman:
x
ne
a. 1 month from date of complaint made to bank and no reply received
b. 1 year from date of receipt of reply from the bank but customer is not satisfied
c. 1 year from date of lodgement of complaint with the bank + 1 month, where reply has not
been received.
io
d. b or c
ot
Ans - d
...................................................
m
o
pr
a. Rs.55 lac
b. Rs.50.00 lac
c. Rs.37.50 lac
nk
d. Rs.22.50 lac
Ans - b
a
...................................................
.b
To pass a cheque issued by the customer in favour of electricity department, bank allowed a
small amount of overdraft to one of its saving bank account holder, without his request for
w
which the customer sends thanks letter. But he is not ready to pay the amount of overdraft
on the plea that he never requested for OD:
w
a. bank can recover the amount

w
b. bank cannot recover the amount

c. bank cannot recover the amount as this has been given without consent of the customer
d. bank can recover the amount but no interest can be charged.
Ans – a
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
co
a. Dy. Governor RBI
c. CEO of the bank
s.
am
Ans - d
...................................................
A uniform margin of _____ is to be applied on all advances / financing of IPOs / issue of
x
guarantees on behalf of share and stockbrokers or on behalf of commodity brokers in
ne
favour of commodity exchanges viz. National Commodity & Derivatives Exchange (NCDEX),
Multi Commodity Exchange of India Ltd. (MCX) and National Multi Commodity Exchange of
India Ltd. (NMCEIL):
io
a. 50%
b. 40%
ot
c. 30%
d. 25%
m
Ans - a
...................................................
o
pr
What type of risk, do the banks face by extending financial inclusion through business
correspondents:
nk
a. market risk
b. reputation risk
c. credit risk
a
d. settlement risk
.b
Ans - b
...................................................
w
A contract entered with a Pardanashin lady can be declared void only when it is proved that:
w
a. the identity was not established

w
b. another party unduly influenced the lady

c. free consent was not given
d. all the above.
Ans – d
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
X presented a bearer cheque for payment for Rs.7500 from account of Mr. Z. He refuses to
sign on the back side of the cheque while obtaining this payment:
co
a. bank can make the payment, without getting signatures
b. bank can refuse the payment since payment without signature of receiver is not a
payment in due course
s.
c. bank can pay by obtaining stamped receipt for receiving the cash
d. bank can pay by obtaining unstamped receipt for receiving the cash
am
Ans - c
...................................................
x
In which of the following accounts, the available funds cannot be attached by a garnishee
ne
order (1)fixed deposit that has not matured (2) account in the name of a deceased person
(3) unused balance in overdraft account
a. 1 to 3 all
io
b. 2 and 3
c. only 2
ot
d. only 3
m
Ans - d
...................................................
o
Gopi is maintaining a current account with the bank and bank receives information
pr
regarding his insanity
a. The bank should stop operations

nk
b. Bank should close the account

c. Bank should ignore the information
a
Ans - a
.b
...................................................
w
Whether a lunatic or a mentally unsound person can become a borrower?

w
a. Yes,
b. No
w
c. Yes, if lunacy or mental unsoundness is of temporary nature and loan is raised when he is
not unsound
Ans – c
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A person who is drunkard:
co
a. Should not be granted loan
b. Should be granted loan after obtaining doctor’s certificate
c. Should be granted loan when he is not under influence of liquor
s.
Ans - c
am
...................................................
Who can operate upon the account of blind person:
x
a. Guardian appointed by court
ne
b. Blind person himself
c. A near relative
io
Ans - b
...................................................
ot
If the current assets are Rs. 150 and the current ratio is 1.5 : 1 the current Laibilities should
m
be:
a. Rs. 1000
o
b. Rs. 200
pr
c. Rs. 100
d. Rs. 225
nk
Ans - c
...................................................
a
A very high debt equity ratio means the unit is :

.b
a. Having more own funds than outside liabilities

b. Having more outside liabilities than own funds
w
c. Having funds surplus

d. Having no equity at all
w
Ans - b
w
...................................................
Acid test ratio or quick ratio is :
a. Quick fixed assets/current liabilities

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. Current assets – inventory/current liabilities
c. Current assets – inventory/current liabilities – bank borrowings
co
Ans - c
...................................................
s.
Debt service coverage ratio is (DSCR) :
am
a. Profit after tax + depreciation – interest on term loan/annual term loan instalment +
interest on term loan
b. Profit before depreciation and Interest / Interest and annual instalment of Term Loan
x
c. Profit/debt
ne
Ans - b
...................................................
io
While withdrawing an amount from account, the blind person:
ot
a. Can put his signatures

m
b. Can put his thumb impression

c. Either of above
o
pr
Ans - c
...................................................
nk
What is the time limit during which the pension should be credited in account of the
pensioner?
a
a. it should be by last day of each month

b. it can be spread over last 4 working days of month and for March, on or first working day
.b
of the next month

c. it should be credited on or after first working day of the next month
w
d. it can be spread over last 4 calendar days of each month and for March on or first
working day of the April next
w
Ans - b
w
...................................................
A person from special category under PMEGP is entitled to following subsidy:
a. rural areas 25% of project cost, urban areas 25% of project cost
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. rural areas 35% of project cost, urban areas 25% of project cost
c. rural areas 25% of project cost, urban areas 15% of project cost
co
d. rural areas 25% of project cost, urban areas 35% of project cost
Ans - b
...................................................
s.
Under provisions of Bankers Book Evidence Act, which of the following can be produced by
am
the bank in a court of law:
a. only original records or documents

b. copy of the original records or documents
x
c. certified copy of the original records or documents
ne
d. any of the given options
Ans - c
...................................................
io
A cause of complaint occurred on January 12, 2010 and the customer made a request to the
ot
bank on January 22, 2010, after verbally pursing the matter. The bank however, did not
reply. The customer can lodge the complaint with Ombudsman latest by which date, for
m
settling this complaint:
a. February 12, 2010

o
b. February 22, 2010

pr
c. February 12, 2011

d. February 22, 2011
nk
Ans - d
...................................................
a
For initiating penal action by different banks, against willful defaulters, the cut off amount
of Rs.___ has been fixed by ___:
.b
a. Rs.5 lac, RBI

w
b. Rs.5 lac, CIBIL

c. Rs.25 lac, RBI
w
d. Rs.25 lac, Ministry of Finance

w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A minor was admitted in a partnership firm for benefits, on Jan 14,2012. He attains majority
on Mar 14,2012.He comes to know about this admission for benefits, on April 25, 2012 only.
co
Latest by which date, he can opt to become the partner in this firm.
a. April 25, 2012

b. July 13, 2012
s.
c. Sept 13, 2012
d. Oct 24, 2012
am
Ans - d
...................................................
x
Which of the following loan can be included in weaker section within priority sector (1) loan
ne
to a farmer having land holding of 3 hectares (2) loan of Rs.40000 to an artisan (3) loan of
Rs.60000 to a distressed poor for debt swap:
a. 1 to 3 all
io
b. only 1 and 2
c. only 3
ot
d. only 2
m
Ans - d
...................................................
o
An AD-Category 1 bank can permit write off of unrealized portion of the export, if the
pr
relevant amount has remained outstanding for more than ____ and other conditions are
satisfied:
nk
a. 3 months from due date

b. 6 months
c. 12 months
a
d. 24 months
.b
Ans - c
...................................................
w
An import licence is issued by DGFT on the basis of which of the following value:
w
a. CIF value
w
b. C&F value
c. FOb. Value
d. CIF or FOB, whichever is lower
Ans – a
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following is not correct in the context of a put option:
co
a. a put option is an option to sell
b. in a put option, there is no obligation of option buyer to sell
c. a put option can be American option only
d. a put option can be European option or American option
s.
Ans - c
am
...................................................
Under SARFAESI Act, the bank is required to give to borrower a notice of ____ days, for
taking possession of the security:
x
ne
a. 15 days
b. 30 days
c. 60 days
d. 90 days
io
Ans - c
ot
...................................................
m
The borrower wants to appeal against the order of Debt Recovery Tribunal under SARFAESI
Act to DRAT. It can do so:
o
a. within 30 days of date of order

pr
b. within 45 days of date of receipt of order

c. by depositing 50% of the amount of decree issued by DRT
d. by depositing 75% of the amount of decree issued by DRT
nk
Ans - c
...................................................
a
A cheque is presented in the account of Mr. X, but meanwhile a garnishee order is received.
.b
On receipt of garnishee order, on account of a customer, what is status of liability of the

bank to pay the cheque ?
w
a. Stops operations in the account

w
b. Loses the right of set off.

c. Bank is discharged from the liability to honour the cheque issued by the customer
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Bank cannot disclose the affairs of account of a customer. What are the circumstance where
it is under obligation to disclose the affairs of customer’s account ?
co
a. compulsion of law
b. banking practice
c. in interest of the bank
s.
d. a to c
am
Ans - d
...................................................
Which of the following narration to the LORO account matches:
x
ne
a. our account with you
b. your account with us
c. their account with them
d. their account with u
io
Ans - c
ot
...................................................
m
Mr. Ashok Rahi had obtained a fixed deposit from India Bank Limited for Rs.50000 for 2
years which have passed 4 months back. When Mr. Ashok Rahi demanded the payment
from the bank on Sept 12, 2005 after maturity, the bank could not locate the records. What
o
is the limitation period during which the customer can file suit to recover the amount from
pr
bank?
a. there is no limitation period in case of deposits and these can be claimed any time
nk
b. the limitation period is three years from date of expiry of the fixed deposit receipt.
c. the limitation period begins from date of the term deposit and is three years
d. the limitation period runs from date of demand of the money and is three years
a
Ans - d
.b
...................................................
w
As per KYc. guidelines of RBI, the customers are categorized into _____categories which are:
w
a. 2, high risk, low risk

b. 2, low risk, medium risk
w
c. 3, high risk, medium risk, low risk

d. 4, very high risk, high risk, medium risk and low risk
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is the maximum extent of exposure of banks in unsecured advances as per RBI
directives:
co
a. 10% of the total advances
b. 15% of the net bank credit
c. 20% of the non-food credit
s.
d. discretion of the banks
am
Ans - d
...................................................
Reply is required to be given under Right to information Act in maximum within___ days:
x
ne
a. 10 days
b. 15 days
c. 20 days
d. 30 days
io
Ans - d
ot
...................................................
m
In a foreign letter of credit, the date for shipment is stated as around 25th January 2013:
a. Shipment has to be made by 25th Jan 2013 only

o
b. the word ‘around’ will be ignored

pr
c. shipment can be made 5 working days before or after

d. shipment can be made 5 calendar days before or after
nk
Ans - d
...................................................
a
A farmer who has not raised crop loan from the bank, wants loan against agricultural
produce stored in a warehouse, before its marketing. What is the maximum amount of loan
.b
that banks can allow:

w
a. Rs.5 lac
b. Rs.10 lac
w
c. Rs.15 lac
d. Rs.50 lac
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is the margin % for advances against shares in demat format:
co
a. 25% for all
b. 40% for all
c. 50% for companies
d. 40% for individuals
s.
Ans - a
am
...................................................
What is true regarding the ownership and possession of security in respect of pledge,
hypothecation and mortgage.
x
ne
a. in all these cases, the possession is with bank and ownership with borrower
b. the ownership is with owner in all cases, but possession is with bank for pledge and with
borrower for others
c. ownership is with owner in all cases, but possession is with bank for pledge &
io
hypothecation and with borrower for mortgage
d. ownership is with owner in all cases but possession is with bank for pledge and mortgage
ot
and with borrower for hypothecation
m
Ans - b
...................................................
o
The term ‘core capital’ in the context of Basel 2 represents which of the following:
pr
a. paid up capital and reserves

b. Tier I capital funds
nk
c. Tier II capital funds

d. Total capital funds comprising Tier 1, Tier II and Tier III
a
Ans - b
...................................................
.b
In the balance sheet of a company, the income accrued and not received is shown as:
w
a. current liability
w
b. net worth
c. current asset
w
d. non-current asset
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is a derivative :
co
a. it is a contract for trading in goods
b. it is a contract for sale and purchase of shares
c. a financial contract payable in future and based on an underlying financial contract
d. a financial contract based on purchase of demat shares
s.
Ans - c
am
...................................................

x
ne
b. two crop seasons
c. one crop season
io
ot
Ans - d
...................................................
m
Which of the following is not included in the cost of plant and machinery for the purpose of
original investment, in micro & small enterprises as per Micro Small & Medium Enterprises
o
Development Act 2006:

pr
a. Cost of equipment
b. Cost of machinery
nk
c. cost of land & building

d. amount of taxes paid on original cost
a
Ans - c
...................................................
.b
If fixed/term deposit accounts are opened with operating instructions, Either or Survivor
w
and the payment is to be obtained before maturity, the signatures of which of the following
are
w
required:
a. both the account holders
w
b. first account holder

c. 2nd account holder
d. only surviving account holder
Ans – a
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
An exporter of your branch receives letter of credit for export of hand-tools to UK but there
is no mention of partial shipment in the credit. In order to conveniently despatch the goods,
co
the exporter wishes that he could partially ship and also trans-ship the exported material:
a. only trans-shipment is allowed where the credit is silent

b. only partial shipment is permitted where the credit is silent
s.
c. where both of these are not mentioned these are not permitted
d. if the credit is silent, both the partial as well as trans-shipment are allowed
am
Ans - d
...................................................
x
The advance allowed to a party for manufacturing or processing the goods for export there
ne
of is called:
a. cash credit advance

b. overdraft advance
io
c. pre-shipment advance
d. post shipment advance
ot
Ans - c
m
...................................................
Advance of Rs.35 lac allowed to a minor irrigation equipment dealer by a bank would be
o
classified as:
pr
a. agriculture advance
b. direct agricultural advance
nk
c. indirect agricultural advance

d. non-priority sector advance
a
Ans - c
...................................................
.b
The balance sheet of a firm has total current assets of Rs.20 lac. and current assets other
w
than stocks Rs.8 lac. If the sales are Rs.120 lac, what is the stock turnover ratio?
w
a. 15 times
b. 13 times
w
c. 12 times
d. 10 times
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A bill of exchange drawn by X on Y bears across its face two parallel transverse lines.
Therefore
co
a. The bill is crossed generally
b. The bill is specially crossed
c. The bill contains superfluous extraneous addition.
s.
d. The bill can not be endorsed further.
am
Ans - c
...................................................
The rate of interest on PPF account is
x
ne
a. 9%
b. 8.6 %
c. 8.7%
d. 12%
io
Ans - c
ot
...................................................
m
RAM a transporter has been granted a loan for purchase of a truck. You will create which of
the following charge
o
a. Assignment
pr
b. a mortgage
c. pledge
d. hypothecation
nk
Ans - d
...................................................
a
The total interest for the financial year 2015-2016 of an individual in term deposit at “A”
.b
branch is Rs 9000 and in “B” branch is Rs 6300. The amount of TDS to be deducted is
[PROVIDED PAN IS SUBMITTED]
w
a. Rs 530/-
w
b. Rs 1530/-
c. No TDS
w
d. it depends on the age of A
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is the target for RRBs under Priority sector
co
a. 100%
b. 60%
c. 50%
d. 75%
s.
Ans - d
am
...................................................
The maximum number of operations allowed in a safe deposit vault in a single day is
x
a. one
ne
b. two
c. three
d. no limit
io
Ans - d
...................................................
ot
A cheque issued in favour of self/order is presented for payment:

m
a. Bank should refuse the payment of cheque

b. Bank should pay the cheque
o
c. Bank should pay to the drawer or person authorised by him after identification.
pr
Ans - c
nk
...................................................
There is credit balance in the account for Rs.3000.00. Three cheques with amount of
a
Rs.1200, 1100 and 1000 are simultaneously presented. Bank will pay the cheques with
amount of Rs.:
.b
a. Rs.1200 only
w
b. Rs.1000 only
c. Rs.1100 only
w
d. Rs.1000 and Rs.1100

w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A paying bank can get protection u/s 85(1) of NI Act on the following:
co
a. A forged endorsement
b. Forged signatures of drawer
c. Both the above
s.
Ans - a
am
...................................................
A paying banker is absolved from his responsibility if he:
x
a. Pays the cheque in due course
ne
b. Pays within prescribed time
c. Pays according to apparent tenor
io
Ans - a
...................................................
ot
There is credit balance of Rs.55000.00 in current account on 1.1.2016 and three cheques of
m
Rs.39000, 44000 and 46000 were presented for payment through clearing on 2.1.2016. The
cheque of Rs.39000 is in favour of ITO.
o
a. Bank will pay the cheque which is in favour of ITO

pr
b. Bank will pay the cheque with highest amount

c. Bank will return all the cheques
nk
Ans - a
...................................................
a
For wrongful dishonour of a cheque, drawee bank will be responsible to:

.b
a. The payee
w
b. The drawer
c. The holder
w

w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The paying bank paid a cheque presented through clearing house however the signature of
the drawer on cheque was forged. The forgery was made so intelligently that it could not
co
be traced by the passing official.
a. The bank is responsible for the payment to the drawer

b. The Bank is not responsible as it is collected through other bank.
s.
c. The Bank is not responsible as it was not visible.
am
Ans - a
...................................................
x
A bearer cheque crossed ` not negotiable’ without having two parallel lines is presented for
ne
payment at the counter:
a. The bank will pay the cheque as these words without lines will not constitute crossing.
b. The bank will not pay as payment of such cheques can be made to banker only.
io
c. After getting identification bank would pay the cheque.
ot
Ans - a
m
...................................................
Non-employment declaration is obtained from:

o
pr
a. retired class-I officers of Central services

b. retired officers of All India service
c. a and b
nk
Ans - c
a
...................................................
.b
Pensioner is required to furnish non-employment declaration, after his retirement within:

w
a. 6 months
b. one year
w
c. two years
d. five years
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The non-employment certificate is obtained
co
a. once in a year in November
b. twice a year during May and November
c. thrice a year during Jan., July and November
s.
Ans - b
am
...................................................
Non-remarriage certificate is required to be furnished by:
x
a. recipients of family pension
ne
b. unmarried/windowed daughter of pensioner
c. widow of the pensioner
d. All the above
io
Ans - d
...................................................
ot
If a pensioner dies, pension is payable:

m
a. till the last day of the month in which he died

b. till preceding month’s last day
o
c. till date of death

pr
Ans - c
nk
...................................................
Public provident fund (PPF) account can be opened by:

a
a. an individual
.b
b. farmer
c. on behalf of a minor
w
d. all the above

w
Ans - d
...................................................
w
Minimum subscription in a PPF account per annum should be :
a. 5
b. 50
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. 500
d. 200
co
Ans - c
...................................................
s.
Deposits in PPF account in a year can be made maximum for:
am
a. two times
b. 6 times
c. 9 times
d. 12 times
x
ne
Ans - d
...................................................
PPF account is opened for:

io
a. 6 years
ot
b. 10 years
c. 15 years
m
d. 20 years
Ans - c
o
...................................................
pr
Loan can be requested for against balance of PPF

nk
a. between 2 to 4th year

b. between 3 to 5th year
c. between 4 to 6th year
a
d. between 3 to 6th year

.b
Ans - d
...................................................
w
While receiving the payment of a bearer cheque the presenter refuses to sign on the
w
reverse of the cheque:

w
a. The bank should not make payment

b. The bank should make payment to the bearer after obtaining the stamp receipt him.
c. The bank will ask for guarantee from the presenter
Ans – b
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The amount of withdrawal will be limited to______% of the balance to the credit at the end
of the 4th year immediately preceding the year in which the amount of withdrawal is to be
co
made or at the end of the preceding year whichever is lower.
a. 10%
b. 50%
s.
c. 70%
d. 100%
am
Ans - b
...................................................
x
While accepting a stop payment instruction from a customer, the bank give
ne
acknowledgement with a condition that it will not be held responsible in case the payment
of stopped cheque is made through oversight. In this case whether bank is responsible if
cheque is paid by mistake:
io
a. The bank will not be responsible as the acknowledgement was conditional.
b. The Bank will be responsible, as the RBI has restrained conditional acknowledgment.
ot
c. The bank will be responsible because the cheque after stop payment instruction is no
more than a plain paper and it is also not a mandate from drawer
m
d. B & C
Ans - b
o
...................................................
pr
A cheque is presented for payment through clearing and the bank passed the cheque in
customer’s account. Meanwhile the bank receives the notice of stop payment of the
nk
cheque. The returning time of the cheque in clearing has not lapsed:
a. The bank should inform the drawer that the cheque was passed before receipt of stop
a
payment notice
b. The bank should comply with the stop payment notice
.b
c. The bank should overlook the stop payment notice

w
Ans - b
w
...................................................
w
The sponsoring agency for bank loan cases, in case of National Urban Livelihood Mission
(NRLM), is:
a. Khadi and Village Industries Commission

b. District Industry Centre
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. Urban Local Body
d. State Urban Livelihood Mission
co
Ans - c
...................................................
s.
Which of the following statement is correct regarding subsidy under National Urban
Livelihood Mission (NULM): (1) subsidy is 25% of project cost max Rs.50000; (2) For interest
am
subsidy rate of interest from borrowers 7%; (3) maximum extent of interest subsidy is 2%;
(4) interest subsidy is equal to difference of rate of interest charged by bank and 7%.
a. 1, 2 and 3
x
b. 1, 2 and 4
ne
c. 2 and 3
d. 2 and 4
Ans - d
io
...................................................
ot
A firm has total liabilities of Rs.20 lac. as per its balance sheet in the first year. There is no
change in the amount of current liabilities in the 2nd year but the long term liabilities have
m
increased from Rs.8 lac. in the 1st year to Rs.12 lac. in the 2nd year and the debt equity ratio
continues to be at 2:1. If the total of balance sheet has increased to Rs.32 lac, in the 2nd
year, what is the change in the amount of tangible net worth ?
o
pr
a. Rs. 4 lac. decrease

b. Rs. 4 lac. increase
c. Rs.2 lac. increase
nk
d. Rs. 2 lac. decrease
Ans - c
a
...................................................
.b
w
a. Dy. Governor RBI

w

c. CEO of the bank
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
TDS is deductible on which of the following account:
co
a. all types of term deposit accounts including recurring deposit
b. all saving bank accounts
c. all NRO accounts including saving bank,where interest is paid
s.
Ans - c
am
...................................................
Which of the following activity cannot be undertaken by Business Correspondents
x
a. disbursement of small value loans
ne
b. collection of small value deposit
c. collection of transaction fee from customers
d. recovery of principal and interest
io
Ans - c
...................................................
ot
The bank received garnishee order on saving bank account of Mr. Ram at 10.50 a.m., who
m
deposits Rs. 5000 at 12.10 p.m.:
a. The order would apply to this amount also.

o
b. The bank will refuse to accept the deposit as no amount can be accepted after garnishee
pr
order
c. The order will not apply to this amount
d. order will apply if court is informed about this
nk
Ans - c
...................................................
a
.b

w
a Section 19 (2) of RBI Act

w

d Section 20 (1) of Banking Regulation Act
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
and building is:
co
a. Rs.20 lac
b. Rs.3 lac
c. Rs.5 lac
s.
d. Rs.10 lac
am
Ans - d
...................................................
x
ne
io
ot
Ans - d
...................................................
m
As per Section 20-A of Banking Regulation Act, the loans in the name of bank directors can
be remitted (written off) with permission of which of the following:
o
pr
a. Management Committee within the bank

b. Board of Directors of the bank
c. Reserve Bank of India
nk
d. cannot be written off
Ans - c
a
...................................................
.b
A business firm has been sanctioned working capital limits of Rs.6 lac. at 25% margin by the
bank and book debt limit of Rs.4 lac. at 50% margin. What will be total margin requirement
w
to avail the limit fully:

w
a. 4 lac
b. 5 lac
w
c. 6 lac
d. 6.5 lac
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
co
a. Rs.55 lac
b. Rs.50.00 lac
c. Rs.37.50 lac
s.
c. Rs.35 lac
am
Ans - b
...................................................
Which of the following narration to the LORO account matches:
x
ne
a. our account with you
b. your account with us
c. their account with them
d their account with us
io
Ans - c
ot
...................................................
m
An employee of Commercial Bank committed an act which is deemed to amount to a

misconduct. Under which of the following, the domestic. enquiry relating to the alleged
misconduct is to be conducted:
o
pr
a Industrial Disputes Act

b. Bipartite Settlement entered in to between the workmen unions and bank management
c. Workmen Service Rules in force with the banks
nk
d. Code of Civil Procedures
Ans - a
a
...................................................
.b
As per KYc. guidelines of RBI, the customers are categorized into _____categories which are:
w
a. 2, high risk, low risk

b. 2, low risk, medium risk
w
c. 3, high risk, medium risk, low risk

d. 4, very high risk, high risk, medium riskand low risk
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is the maximum extent of exposure of banks in unsecured advances as per RBI
directives:
co
a. 10% of the total advances
b. 15% of the net bank credit
c. 20% of the non-food credit
s.
d. discretion of the banks
am
Ans - d
...................................................
Reply is required to be given under Right to information Act in maximum within___ days:
x
ne
a. 10 days
b. 15 days
c. 20 days
d. 30 days
io
Ans - d
ot
...................................................
m
In a foreign letter of credit, the date for shipment is stated as around 25th January 2013:
a. Shipment has to be made by 25th Jan 2013 only

o
b. the word ‘around’ will be ignored

pr
c. shipment can be made 5 working days before or after

d shipment can be made 5 calendar days before or after
nk
Ans - d
...................................................
a
A farmer who has not raised crop loan from the bank, wants loan against agricultural
produce stored in a warehouse, before its marketing. What is the maximum amount of loan
.b
that banks can allow:

w
a Rs.5 lac
b. Rs.10 lac
w
c. Rs.15 lac
d. Rs.50 lac
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
What is the margin % for advances against shares in demat format:
co
a. 25% for all
b. 40% for all
c. 50% for companies
d. 40% for individuals
s.
Ans - a
am
...................................................
What is true regarding the ownership and possession of security in respect of pledge,
hypothecation and mortgage.
x
ne
a. in all these cases, the possession is with bank and ownership with borrower
b. the ownership is with owner in all cases, but possession is with bank for pledge and with
borrower for others
c. the ownership is with owner in all cases, but possession is with bank for pledge and
io
hypothecation and with borrower for mortgage
d. the ownership is with owner in all cases, but possession is with bank for pledge and
ot
mortgage and with borrower for hypothecation
m
Ans - b
...................................................
o
The term ‘core capital’ in the context of Basel 2 represents which of the following:
pr
a. paid up capital and reserves

b. Tier I capital funds
nk
c. Tier II capital funds

d. Total capital funds comprising Tier 1, Tier II and Tier III
a
Ans - b
...................................................
.b
In the balance sheet of a company, the income accrued and not received is shown as:
w
a. current liability
w
b. net worth
c. current asset
w
d. non-current asset
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following is not included in the cost of plant and machinery for the purpose of
original investment, in micro & small enterprises as per Micro Small & Medium Enterprises
co
Development Act 2006:
a. Cost of equipment
b. Cost of machinery
s.
c. cost of land & building
d. amount of taxes paid on original cost
am
Ans - c
...................................................
x
If fixed/term deposit accounts are opened with operating instructions, Either or Survivor
ne
and the payment is to be obtained before maturity, the signatures of which of the following
are required:
a. both the account holders

io
b. first account holder
c. 2nd account holder
ot
d. only surviving account holder
m
Ans - a
...................................................
o
The advance allowed to a party for manufacturing or processing the goods for export there
pr
of is called:
a. cash credit advance

nk
b. overdraft advance
c. pre-shipment advance
d. post shipment advance
a
Ans - c
.b
...................................................
w
The balance sheet of a firm has total current assets of Rs.20 lac. and current assets other
than stocks Rs.8 lac. If the sales are Rs.120 lac, what is the stock turnover ratio?
w
a. 15 times
w
b. 13 times
c. 12 times
d. 10 times
Ans – d
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Earnings per share is :
co
a. Income attributable to ordinary shareholders/Average ordinary share
b. Gross profit/net worth
c. Net profit/capital
d. Profit after Tax / number of shares
s.
Ans - d
am
...................................................
A firm has total liabilities of Rs.20 lac. as per its balance sheet in the first year. There is no
change in the amount of current liabilities in the 2nd year but the long term liabilities have
x
increased from Rs.8 lac. in the 1st year to Rs.12 lac. in the 2nd year and the debt equity ratio
ne
continues to be at 2:1. If the total of balance sheet has increased to Rs.32 lac, in the 2nd
year, what is the change in the amount of tangible net worth ?
a. Rs. 4 lac decrease

io
b. Rs. 4 lac increase
c. Rs.2 lac increase
ot
d. Rs. 2 lac decrease
m
Ans - c
...................................................
o
There are four transactions of Rs.5,00,000 Rs.3,00,000 Rs.10,00,000 and Rs.40,000 in an

pr
account in different months. Which of these will be reported under Money Laundering Act :
a. 300000
nk
b. 500000
c. 1000000
a
Ans - d
.b
...................................................
w
Which of the following statement is a correct statement about joint deposit accounts.
w
a. the names can be substituted with the name of other persons

b. there can be maximum 2 nominees
w
c. in case of either or survivor account, if one expires and pre-mature payment is to be

obtained, it will be made to survivor and legal heirs of the deceased account holder
d. all the statements are wrong
Ans – c
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
An exporter of your branch receives letter of credit for export of hand-tools to UK but there
is no mention of partial shipment in the credit. In order to conveniently despatch the goods,
co
the exporter wishes that he could partially ship and also trans-ship the exported material:
a. only trans-shipment is allowed where the credit is silent

b. only partial shipment is permitted where the credit is silent
s.
c. where both of these are not mentioned these are not permitted
d. if the credit is silent, both the partial as well as trans-shipment are allowed
am
Ans - d
...................................................
x
An income tax attachment order for Rs.125,000/= is received in the name of Mr. X who is
ne
having a joint account with his wife Mrs. W. The balance in the joint account is
Rs.2,00,000/=.
a. attachment in a joint account is not permitted

io
b. attachment is allowed for an amount up to Rs.1.25 lac
c. attachment is allowed for an amount up to Rs.1 lac. only
ot
d. attachment up to full amount is permitted in attachment order
m
Ans - c
...................................................
o
A cheque has been issued by a firm in favour of bank and is crossed account payee. This is
pr
presented by the bank on the counter of drawee bank for cash payment:
a. the payment can be made through clearing only

nk
b. The drawee bank should make payment

c. The drawee bank should refuse payment
d. cheque has not been drawn properly as the bank can be drawee only and not a payee
a
Ans - b
.b
...................................................
w
Price earnings ratio is :

w
a. Market price per share/earnings per share

b. Issue price per share/profit
w
c. Dividend per share/market price per share

d. Market price per share/dividend per share
Ans – a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
On expiry of a bank guarantee issued by a bank, guarantee bond is obtained back and a
contra entry is passed. This benefits the bank in which way:
co
a. bank can recognize the commission received as income
b. capital adequacy requirement of the bank is reduced
c. contingent liability gets converted into a normal liability
s.
d. money of the guarantee need not be recovered from the beneficiary
am
Ans - b
...................................................
Universal Bank is maintaining a current account of M/s Sunaina Enterprises Ltd for the last 3
x
years. The bank receives a request from the company for return of all the cheques issued by
ne
them and paid by the bank from their account during the last 6 months. What action the
bank would take?
a. Bank may return the instruments if the company is a very reputed client so as the
io
maintain relationship.
b. Bank may return the instruments as it is provided under the provisions of Banking
ot
Regulation Act
c. Bank should refuse the request since the passed cheques are the property of the bank
m
and bank may need these instruments for various purposes.

d. Bank may advise them to obtain photo copy of the instruments.
o
Ans - b
pr
...................................................
W.e.f. 1.4.2011, the processing/service charges for local clearing (by clearing house from
nk
member banks) for clearing at cheque truncation, for presenting bank and drawee bank are
as under:
a
a. 100 p and 75 p
b. 75 p and 75 p
.b
c. 50 p and 100 p
d. 75 p and 50 p
w
Ans - c
w
...................................................
w
Harish and Mahinder are joint trustees and Harish is authorised to operate the account. He
issues a cheque but Mahinder gives a stop payment notice. The bank in the case:
a. Should not obey Mahinder as he is not having the powers to operate

b. Obey instructions of Mahinder as he is one of the trustees
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. Should ask Harish. As to why the payment not be stopped.
d. seek court direction because of the dispute
co
Ans - a
...................................................
s.
Under which of the following, the clearing is organised locally wherein settlement of
outstation cheques takes place :
am
a. speed clearing
b. high value clearing
c. electronic clearing service
x
d. national clearing
ne
Ans - a
...................................................
io
Under CTS-2010 Standards for cheques, which is not the specified feature:
ot
a. Void mark
b. Floral
m
c. Bank’ s Logo
d. Paper thickness
o
Ans - b
pr
...................................................
Two charges were registered over the property of a company with ROC. One was created on
nk
01.02.2012 and registered on 28.02.2012. The other was created on 07.02.2012 and was
registered on 15.02.2012 :
a
a. charge created on 01.02.12 will have priority

b. charge created on 07.02.12 will have priority
.b
c. charge registered on 15.02.12 will have priority

d. both the charges will have equal priority
w
Ans - a
w
...................................................
w
State Bank opens a current account with Bank of America in Los Angles for its day to day
business transactions, in US dollars. Which of the following kinds of accounts, it will be
known?
a. Vostro Account
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. Nostro Account
c. Loro Account
co
d. Escrow Account
Ans - b
...................................................
s.
A bearer cheque payable in favour of a liquidated company is presented for payment by the
am
liquidator:
a. The bank can make payment

b. The bank can pay after identification
x
c. The Bank can not make the payment to liquidator because he has to keep the money in a
ne
banking account.
Ans - b
io
...................................................
ot
A payee of a cheque requests for stop payment of a particular cheque because he has lost it:
m
a. The bank will comply with the request.

b. The bank will exercise the caution and seek the confirmation from the drawer. In the
mean time if the cheque is presented for payment it should be returned with the remarks
o
cheque reported lost, confirmation is awaited.

pr
c. The bank will ignore the request.

nk
Ans - b
...................................................
a
A requested for stop payment of a cheque in favour of B. On the same date a cheque in
clearing is presented for payment which bears the same name, amount and number of the
.b
cheque, the payment of which is stopped, but the date differs:

w
a. The bank should not pay because the date of cheque may wrongly be mentioned but all
other material facts of the cheque tally with the notice of stop payment.
w
b. The bank should refer the matter to the drawer

c. The Bank should pay the cheque
w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Liability of the guarantor in a contract of guarantee is
co
a. unlimited
b. Irrespective of the liability of the principal debtor
c. Co extensive with that of the principal debtor
s.
Ans - c
am
...................................................
Normally the bank limitation clause is incorporated in the guarantee issued by banks but
exception is
x
ne
a. Import Guarantees
b. Deferred Payment guarantees
c. Export performance Guarantee under duty exemption scheme
d. All of the above
io
Ans - b
ot
...................................................
m
The person on whose behalf the guarantee is issued is called
a. Creditor
o
b. Beneficiary
pr
c. Guarantor
nk
Ans - d
...................................................
a
In contract of guarantee consideration means anything done or any promise made for the
benefit of the principal debtor may be sufficient consideration to the surety for giving the
.b
guarantee. The word anything done imply that consideration may be a past consideration
also
w
a. Yes
w
b. no
c. can not say
w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
In order to get an allotment of a contract from R & B your customer is required to deposit
security deposit worth Rs.1.00 lakh or alternatively a bank guarantee for Rs.1.00 lakh in lieu
co
of deposit. What type of bank guarantee will you issue?
a. Performance Guarantee
b. Financial Guarantee
s.
c. Deferred Payment Guarantee
d. Any type of guarantee can be issued
am
Ans - a
...................................................
x
In guarantees the commission is to be recovered for the period covering
ne
a. Period of guarantee only
b. Period of guarantee and period of claim
c. 3 years
io
ot
Ans - b
...................................................
m
Return on assets is :
o
a. PBDIT / average total liabilities

pr
b. PBDIT / average total assets

c. Average total assets/net income after tax
nk
Ans - b
...................................................
a
Net profit margin is :

.b
a. Net income after tax/sales X 100

w
b. Gross income after tax/sales

c. Net income before tax/sales X 100
w

w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A, a customer has an account and her husband had withdrawn the money from the bank on
the basis of forged cheques at various occasions but the customer did not object to it. After
co
his death she comes to bank and demands the money.
a. Bank would refer the matter to the court.

b. Bank is liable on forged cheques.
s.
c. The bank is not liable as the customer is negligent/connived and did not inform the bank.
am
Ans - c
...................................................
x
A cheque in clearing is presented for payment, but the amount in words and figures differ:
ne
a. A Bank should pay the amount whichever is less.
b. Bank should return the cheque
c. Bank should pay the amount in figures
io
d. Bank should pay the amount in words.
ot
Ans - d
...................................................
m
Bank receives two cheques in clearing and balance is sufficient to pay only one cheque:
o
a. Important cheque (covering payment of essential / govt. dues) should be paid.

pr
b. Payment should be on first come first served basis

c. Both the cheques should be returned
nk
Ans - a
...................................................
a
Payment of forged instrument is not a valid discharge for the bank of its liability because:
.b
a. the instrument is not a proper mandate

w
b. forgery should be detected by the bank in any case

c. bank has signatures of the customer and he can not deny his liability.
w

w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Holders of post-dated cheques can sue the drawer:
co
a. after the stated date, if remain unpaid.
b. On date of their issue
c. Any time after their issue
s.
Ans - a
am
...................................................
Particulars for satisfaction of charges is filed [in case of company] AS PER CO ACT 2013
x
a. CHG1
ne
b. CHG3
c. CHG4
d. CHG 8
io
Ans - c
...................................................
ot
Section 6 of N.I act deals with

m
a. cheques
b. truncated cheques
o
c. electronic form of cheque

pr
d. all the above
Ans - d
nk
...................................................
What is the maximum amount of stamp duty payable on a Demand promissory note
a
a. 10paise
.b
b. 15 paise
c. 50 paise
w
d. one rupee
w
Ans - b
...................................................
w
Which of the following instrument is known as plastic money
a. Travellers cheque
b. credit cards
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. bearer cheques
d. demand draft
co
Ans - b
...................................................
s.
RBI decided to reduce the eligible limit of export credit refinance facility from the level of
32% of the outstanding rupee export credit eligible for refinance as at the end of the second
am
preceding fortnight to _____ effective from October 10, 2014.
a. 25%
b. 20%
x
c. 15%
ne
d. 10%
Ans - d
...................................................
io
In line with the recommendation of the Financial Stability and Development Council, the
ot
State-Level Coordination Committees, chaired by State chief secretaries, will meet once in a
____:
m
a. month
b. quarter
o
c. half-year
pr
d. year
Ans - b
nk
...................................................
Which of the following is proposed to be created by RBI, as a searchable database for

a
frauds, for use by banks:

.b
a. Central Fraud Registry

b. Fraud Database
w
c. Central Fraud Warehouse

d. Fraud Registry
w
Ans - a
w
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
As per RBI guidelines, the banks should impose ‘partial freezing’ on KYc. noncompliant
accounts in a phased manner. Partial freezing during the first 6 months period, includes:
co
a. transactions at the discretion of the bank
b. only credits to be permitted
c. only debits to be permitted
s.
d. no debit and no credit to be permitted.
am
Ans - b
...................................................
What is meant by the term ‘under financing’ ?
x
ne
a. finance for poor quality assets
b. finance for lesser quantity of assets
c. less finance than required by the project activity
d. less fixed assets
io
Ans - c
ot
...................................................
m
Joint Liability Forum (JLF) is required to arrive at an agreement on the option to be adopted
for corrective action plan (CAP) within _____ days from (i) the date of an account being
reported as Special mention Account-2 (SMA-2) by one or more lender, or (ii) receipt of
o
request from the borrower to form a JLF, with substantiated grounds, if it senses imminent
pr
stress.
a. 15 days
nk
b. 30 days
c. 45 days
d. 60 days
a
Ans - c
.b
...................................................
w
Pre-sanction appraisal of loan proposals refers to:

w
a. verification of securities proposed to be given

b. obtention of market report on the borrower
w
c. examination of the project with a view to ascertain whether it is bankable

d. all the above
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Banks are required to report credit information, including classification of an account as
special mention account (SMA) to Central Repository of Information on Large Credit (CRILC)
co
on all their borrowers having aggregate fund-based and non-fund based exposure of Rs.50
million and above with them. Which of the following types of loans are exempted from this
requirement:
s.
a. MSE Loans
b. Priority Sector Loans
am
c. Crop Loans
d. all the above
Ans - c
x
...................................................
ne
Depreciation arises because of:
a. fall in the market value of an asset

io
b. physical wear and tear
c. fall in value of money
ot
m
Ans - b
...................................................
o
Under the straight line method of charging depreciation, amount:

pr
a. increases every year

b. decreases every year
nk
c. is constant every year

a
Ans - c
...................................................
.b
Under the diminishing balance method, depreciation is calculated on:

w
a. the original cost

w
b. written down value

c. the scrap value
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
As per RBI guidelines, the banks should impose ‘partial freezing’ on KYc. noncompliant
accounts in a phased manner. Partial freezing is to be enforced when the customer does not
co
comply with KYc. requirement, even after ___ from issue of notices by the bank, to comply
with the requirement:
a. 1 months
s.
b. 2 months
c. 3 months
am
d. 6 months
Ans - d
...................................................
x
ne
Which of the following is not a feature of bill of exchange?
a. it is an order in writing
b. the person who draws it is called drawee
io
c. the persons who obtains payment is called payee
d. the bill can be drawn as demand bill or usance bill
ot
Ans - b
m
...................................................
The range of amount of investment in____ for classifying an enterprise in medium

o
enterprise category, is____:

pr
a. plant and machinery, above Rs.5 cr to Rs.10 cr

b. plant and machinery, Rs.5 cr to Rs.10 cr
nk
c. Equipment, above Rs.5 cr to Rs.10 cr

d. Equipment, Rs.2 cr to Rs.5 cr
a
Ans - a
...................................................
.b
A non-resident ordinary account can be opened as:

w
a. FD only
w
b. FD or saving bank only

c. FD, SB or current account, any
w
d. SB and current account at discretion of the bank
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The main objective of opening basic. saving bank accounts is:
co
a. to increase no. of accounts within the banks
b. to increase the amount of deposit
c. to enhance the financial inclusion
d. all the given objectives are correct.
s.
Ans - c
am
...................................................
A fraud of Rs.2.5 cr has taken place and there is no staff involvement. Other than RBI, it will
be reported to:
x
ne
a. Banking Security and Fraud Cell of CBI
b. Anti-corruption Bureau of CBI
c. State Police
d. Economic. Offences Wing of CBI
io
Ans - c
ot
...................................................
m
In a pre-shipment credit, what is the maximum period during which export must take place,
to avail the concessional rate of interest:
o
a. 21 days
pr
b. 6 months
c. 270 days
d. 360 days
nk
Ans - d
...................................................
a
As per extant MSE policy, the annual growth rate in micro enterprise loan accounts should
.b
be:
w
a. 5%
b. 10%
w
c. 15%
d. 20%
w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
If a fixed deposit matures and proceeds are unpaid, the amount left unclaimed with the
bank will attract:
co
a. no interest as the amount is in the form of current account
b. interest rate for corresponding maturity
c. saving bank interest rate
s.
d. interest rate corresponding to min maturity of 7 days.
am
Ans - c
...................................................
If the time period of payment of a bill of exchange or promissory note is not indicated, such
x
instruments shall be treated as:
ne
a. payable on demand
b. payable as per mutual arrangement within the parties
c. invalid bill of exchange or promissory note
io
ot
Ans - a
...................................................
m
Which of the following features of a not negotiable instrument is not correct:

o
a. holder of such instrument gets the title which the transferor had
pr
b. in such instruments there is no holder in due course

c. such instrument cannot be transferred further by way of endorsement
d. banks have to make payment of such instrument, by taking normal precautions only
nk
Ans - c
...................................................
a
Bank guarantee is required to be signed by two officials, where the amount of guarantee is:
.b
a. Rs.10000 and above

w
b. Rs.50000 and above

c. Rs.1 lac. and above
w
d. Rs.10 lac. and above

w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following RBI guidelines on nomination, are not correct:
co
a. name of nominee cannot be indicated on pass-book as that amounts to violation of
secrecy rules
b. on request of customer, the name of nominee can be indicated on pass-book or FDR
c. pass-book should be marked as nomination registered
s.
d. none of the given options is incorrect
am
Ans - a
...................................................
XYZ Limited are sanctioned working capital limits by Bank-A, the lead bank, Bank-b. and
x
Bank-C, the participating banks. Accounts have been classified by Bank-A as sub-standard.
ne
What will be classification of account with Bank-b. and Bank-C:
a. Banks to follow lead bank classification

b. Banks can use their own judgment on the basis of conduct of their accounts
io
c. Banks to decide the classification issue in the consortium meeting and adopt a uniform
classification
ot
m
Ans - b
...................................................
o
Where the principal and interest amount of fixed deposit receipt is Rs.20000 or above, it can
pr
be paid to the customer:
a. by way of credit to some account or issue of account payee cheque, as per RBI guidelines
nk
b. by way of credit to some account or issue of account payee cheque, as per Income Tax
Rules
c. by way of credit to some account or issue of account payee cheque, as per KYc. guidelines
a
d. by way of credit to some account or issue of account payee cheque, as per IBA suggestion
.b
Ans - b
...................................................
w
The term mixed farming stands for:

w
a. mixing the crops produce after it is harvested

w
b. where fruit production and crop production takes place side by side
c. where the farmers join together to undertake cultivation and harvesting of crops
d. where rearing of cattle and production of crops is taken simultaneously
Ans – d
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
If visually impaired persons approaches for certain banking facilities, which of the following
can be permitted to him (1) cheque book facility (2) ATM facility (3) Net bank facility (4)
co
Locker facility
a. 1 to 4 any
b. 1 to 3 only
s.
c. 1 and 2 only
d. 1 and 4 only
am
Ans - a
...................................................
x
What is the time period for meeting of the Committee on Implementation of Official
ne
Language:
a fortnightly
b. monthly
io
c. quarterly
d half-yearly
ot
Ans - c
m
...................................................
A public. sector bank must be member of at least ___ Credit Information Companies, as per
o
RBI guidelines:
pr
a. one
b. two
nk
c. three
d. at discretion of the bank
a
Ans - a
...................................................
.b
XYZ has got its raw material stock fully insured against fire, which it keeps in Godown- 1. A
w
part of the material is sent for processing in the adjoining Godown-2. Due to sudden fire,
the stock in Godown-2 is damaged. What is the extent of insurance claim admissible?
w
a. no claim is admissible
w
b. claim is admissible on prorata basis (i.e. in the ratio of stock in Godown-1 and Godown-2)
c. full claim is admissible as processing of stocks of raw material is a logical requirement.
D. no claim is available in respect of stock in process irrespective of its location.
Ans – a
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following explanation is more appropriate for a Teaser Home Loan:
co
a. Teaser Home Loan is a home loan where interest rate is low initially and high later on.
b. Teaser Home Loan is a home loan where interest rate is high initially and low later on.
c. Teaser Home Loan is a home loan without strict conditions.
d. Teaser Home Loan is a home loan with strict conditions.
s.
Ans - a
am
...................................................
While disposing of deceased claims succession certificate is to be insisted only when
x
a. there is no nomination
ne
b. the claim amount is more than RS 1 Lakh
c. If all the legal heirs do not join to indemnify the bank
d. the claim amount is more than Rs 10 lakhs
io
Ans - c
...................................................
ot
ATM personal identification is a

m
a. alpha numerical
b. 4 digit number
o
c. 3 digit number
pr
d. 5 digit number
Ans - b
nk
...................................................
RBI is empowered to step up SLR to

a
a. 30%
.b
b. 40%
c. 50%
w
d. 45%
w
Ans - b
...................................................
w
The limitation period for a Decree is
a. 12 years
b. 3 years
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. no limit
d. 90 days
co
Ans - a
...................................................
s.
Every banking company incorporated in India has to transfer to reserve funds -----of the
profits for each year
am
a. not less than 20%
b. not less than 25%
c. not less than 1%
x
d. not less than 10%
ne
Ans - a
...................................................
io
The limitation period in case of pledge is
ot
a. 3 years
b. 12 years
m
c. 90 days
d. no limitation
o
Ans - d
pr
...................................................
A bill of exchange favouring A or order was endorsed by A on the reverse of the instrument
nk
as pay B or order and signed below that. Before it could be delivered to B, A passed away.
Thereafter the legal heirs of A delivered the instrument to B. In this case...
a
a. The negotiation is valid as both endorsement & delivery has taken place
b. It is invalid negotiation as the legal heir of A can not complete its negotiation by delivery.
.b
c. The importance is endorsement and not delivery and hence it is valid.

w
Ans - b
w
...................................................
w
Hypothecation is a mode of security provided in
a. Indian contract act 187

b. transfer of property act 1882
c. banking regulation act 1949
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
d. SARFAESI Act 2002
co
Ans - d
...................................................
At present the Bank rate, CRR, and SLR are respectively
s.
a. 6.25%,25%,4.75%
am
b. 25%,6.25%,4.75%
c. 4.75%,6.25%,25%
d. 7.75%,4%,21.5%[ look for latest rate and change answer no 4]
x
Ans - d
ne
...................................................
Resident foreign currency account [domestic] can be opened in the form of

io
a. current account
b. time deposit
ot
c. savings account
d. all the above
m
Ans - a
...................................................
o
pr
Which one of the following will be treated as material alteration?
a. Converting an endorsement in blank to an endorsement in full

nk
b. crossing of a open cheque by holder

c. conversion of a general crossing in to special crossing
d. conversion of “order in to “bearer”
a
Ans - d
.b
...................................................
w
A cheque drawn in favour of x is crossed “not negotiable”. X endorses the cheque in favour
of Y for valuable consideration. Y becomes ...
w
a. A holder in due course

w
b. only a holder
c. an assignee for the amount of cheque
d. the cheque can not be endorsed
Ans – b
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A bearer cheque with general crossing is paid across the counter to the bearer of the
cheque. Later on it was found that the cheque was stolen. In this case the banker is...
co
a. Liable to the original owner of the cheque
b. liable to the true owner of the cheque
c. will not be liable since it is a bearer cheque
s.
am
Ans - b
...................................................
An endorser of a negotiable instrument may, by express words in the endorsement excludes
x
his own liability there on. Such an endorsement is
ne
a. Facultative endorsement
b. endorsement “sans recourse”
c. partial endorsement
io
d. restrictive endorsement
ot
Ans - b
...................................................
m
A endorses a negotiable instrument in favour of B. Here

o
a. A is the endorser and B is the endorsee

pr
b. B is the endorser and A is the endorsee

c. both are endorsers
d. both are endorsees
nk
Ans - a
...................................................
a
The paying banker is protected under following SECTION for payment of cheque with forged
.b
signature of the drawer.

w
a. Sec 89 of N.I act

b. sec 85[a. of N.I act
w
c. sec 131 of N.I act

d. no protection is available
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The definition of negotiable instruments is contained in
co
a. N.I act
b. Indian contract act
c. Banking regulation act
s.
Ans - d
am
...................................................
P of Kanpur draws a bill on Q of London payable at Mumbai The bill is a
x
a. Inland bill
ne
b. foreign bill
c. demand bill
io
Ans - a
...................................................
ot
A bill dated 22-11-2011 is payable 1 month after date. The bill will mature on
m
a. 24-12-2011
b. 25-12-2011
o
c. 26-12-2011
pr
d. 22-12-2011
Ans - a
nk
...................................................
The offence as described u/s 138 become cognizable when:

a
a. a complaint is made
.b
b. time of such complaint is within one month.

c. A and B
w

w
Ans - c
...................................................
w
A cheque for Rs.124390.00 is drawn in favour of Dhiraj Kumar or bearer. It is presented by a

cycle repair shop worker, near your branch. What will you do:
a. Pay the cheque without any enquiry

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. Refuse to pay the cheque since circumstances are such that the presenter may not be
entitled for receiving the amount Make enquiries and if satisfied pay or otherwise refuse
co
c. Insist for identification by the drawer
Ans - b
...................................................
s.
Under Section 25 of NI Act, who declares a Public Holiday:
am
a. State Govt.
b. Central Govt.
c. RBI
x
d. A or b
ne
Ans - d
...................................................
io
Where the Central Govt. declares a day as public holiday, the bank offices in a particular
State will be remain closed only when:
ot
a. State govt. notifies

m
b. RBI notifies the day as public holiday

c. No need for any further notification
d. All the above
o
pr
Ans - c
...................................................
nk
Which of the following statements is incorrect:
a. A bills of exchange is an instruments in writing

a
b. A bill of exchange may be drawn conditionally

c. A bill of exchange directs a certain person to pay certain amount of money
.b
d. A bill of exchange is payable to the order of a certain person or to the bearer of the
instrument
w
Ans - b
w
...................................................
w
A bill is payable at sight. It will be treated as:
a. Demand Bill
b. Usance bill
c. Accommodation bill
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
co
Ans - a
...................................................
An accommodation bill is drawn for
s.
a. Mutual benefit without consideration
am
b. Genuine trade transaction against consideration
c. Payable at sight
x
Ans - a
ne
...................................................
What is the no. of monthly ATM transactions that banks can restrict for use by other bank
customers, in 6 metro centers namely, Mumbai, Kolkata, Delhi, Chennai, Hyderabad,
io
Bangalore:
ot
a. 3 financial transactions
b. 3 non-financial transactions
m
c. 3 financial and non-financial transactions

d. 5 financial transactions
o
Ans - c
pr
...................................................
What is the no. of monthly ATM transactions that banks can restrict for use by other bank
nk
customers, at centres other than 6 metro centres namely, Mumbai, Kolkata, Delhi, Chennai,
Hyderabad, Bangalore:
a
.b
c. 5 financial and non-financial transactions

w
Ans - c
w
...................................................
w
What is the no. of monthly ATM transactions that banks can restrict for simultaneous use by
other bank customers, in 6 metro centres and non metro centres:
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. 3 and 5 financial and non-financial transactions respectively
co
Ans - c
...................................................
s.
RBI decided to bring down the ceiling on SLR securities under the HTM category from 24% of
NDTL to _____ in a graduated manner as on Sep 19, 2015:
am
a. 23.5%
b. 23%
c. 22.5%
x
d. 22%
ne
Ans - d
...................................................
io
RBI decided to allow importers to book forward contracts, under the past performance
route, up to _____ of the eligible limit against previous limit of 50%.
ot
a. 25%
m
b. 60%
c. 75%
d. 100%
o
pr
Ans - d
...................................................
nk
X and Y are associated with the following accounts jointly and they want to nominate their
sons A and b. in these accounts. In which of the following accounts, they can be allowed to
do so:
a
a. joint saving bank account

.b
b. joint safe deposit vault account

c. joint safe deposit of articles account
w
d. in any of these accounts

w
Ans - b
...................................................
w
On receipts of counterfeit notes, the FIR is required to be filed with the Police on mandatory
basis:
a. when the denomination of currency notes is Rs.500 or above

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. when the denomination of currency notes is Rs.1000 or above
c. when the number of counterfeit notes is 5 or more in a single transaction
co
d. in all cases.
Ans - c
...................................................
s.
What is the maximum maturity period in respect of treasury bill:
am
a. less than 91 days
b. 91 days
c. 182 days
x
d. 364 days
ne
Ans - d
...................................................
io
What is the time limit to return the dishonoured cheques to the customer, which are
tendered for collection:
ot
a. same day
m
b. 24 hours
c. two days
d. three days
o
pr
Ans - b
...................................................
nk
Loan cannot be given the director of the same bank by a bank, in case of following type of
security:
a
a. govt. security
b. life insurance policy
.b
c. bank deposit
w
Ans - d
w
...................................................
w
What is the maximum amount of crop loan that can be permitted to marginal farmer under
Kissan Credit Card Scheme:
a. Rs.25000
b. Rs.50000
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. Rs.1 lac
d. at discretion of bank
co
Ans - b
...................................................
s.
When a fraud takes place in a bank branch, it is considered as part of _______ risk.
am
a. credit risk
b. settlement risk
c. operational risk
d. systemic. risk
x
ne
Ans - c
...................................................
As a financial instrument, what is nature of commercial paper or certificate of deposit:

io
a. it is a bill of exchange
ot
b. it is a usance promissory note
c. it is a actionable claim
m
d. it is a bond certificate
Ans - b
o
...................................................
pr
Single debit and multiple credit is a transaction, that takes place in the form of:
nk
a. RTGS
b. NEFT
c. ECS-credit
a
d. Speed clearing
.b
Ans - c
...................................................
w
Deposit insurance is available for a deposit when the maximum amount is:
w
a. Rs.50000
w
b. Rs.1 lac
c. Rs.5 lac
d. Any amount
Ans – d
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Short period overdraft given by RBI to Central Govt. to meet mismatches in receipts and
payments, is called:
co
a. marginal standing facility
b. liquidity adjustment facility
c. reverse repo transaction
s.
d. ways and means advances
am
Ans - d
...................................................
Which of the following type of guarantee is associated with obligation of the applicant to
x
make payment in installment of a long term credit allowed by his supplier:
ne
a. standby guarantee
b. deferred payment guarantee
c. financial guarantee
io
d. performance guarantee
ot
Ans - b
...................................................
m
A bill of lading issued by a shipping company, which bears no Super imposed clause or
notation that expressly declares the defective condition of goods or packaging, is called :
o
pr
a. on board bill of lading

b. Claused bill of lading
c. clean bill of lading
nk
d. stale bill of lading
Ans - c
a
...................................................
.b
The amount of goodwill recorded in the balance sheet by a firm, is shown as part of:
w
a. net worth of the firm

b. fixed assets of the firm
w
c. contingent liability of the firm

d. intangible asset of the firm
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
To arrive at capital adequacy ratio under Basel 2, which of the following type of risk is not
taken into account:
co
a. credit risk
b. systemic risk
c. market risk
s.
d. operational risk
am
Ans - b
...................................................
Under National Urban Livelihood Mission (NULM), loan for which of the following activities
x
is available (1) manufacturing (2) servicing (3) petty business
ne
a. 1 to 3 all
b. 1 and 2 only
c. 2 and 3 only
io
d. 1 and 3 only
ot
Ans - a
...................................................
m
A usance bill dated Feb 03, 2012 payable 90 days after sight is accepted on Feb 13, 2012.
What is due date:
o
pr
a. 6.05.2012
b. 9.5.2012
c. 13.5.2012
nk
d. 16.5.2012
Ans - d
a
...................................................
.b
The limitation period in case of a bill payable on demand starts from:

w
a. Date of the bill

b. Date of demand
w
c. (a) or (b) whichever earlier

w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
When the due date of a bill falls on a public holiday, the bill is payable.
co
a. on next working day
b. On next preceding business day
c. 3 days after next working day
s.
Ans - b
am
...................................................
On presentation of usance bill of exchange, the drawee puts his signature on the face of the
bill, without writing the words `accepted for payment’.
x
ne
a. it cannot be considered as acceptance, as intention is not clear
b. it constitutes incomplete acceptance
c. acceptance is complete and drawee becomes liable on it
d. putting the works accepted alongwith signature is must
io
Ans - c
ot
...................................................
m
A usance bill is payable 2 months after acceptance without any grace period’, is accepted on
March 10, 2015. Its due date for payment will be:
o
a. May 08, 2015

pr
b. May 10, 2015

c. May 11, 2015
d. May 15, 2015
nk
Ans - b
...................................................
a
What will be due date for a bill dated 1.2.2015 payable 45 days after sight and the bill was
.b
accepted on 6.2.2016:
w
a. 23.3.2016
b. 26.3.2016
w
c. 25.3.2016
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A bill of exchange is sent for acceptance but for three days, the drawee does not respond.
The bill should be treated as:
co
a. Accepted
b. Dishonored for acceptance
c. Dishonored for payment
s.
d. To be presented again
am
Ans - b
...................................................
Noting is done on:
x
ne
a. The instrument itself
b. A separate paper
c. Partly on (a) and (b)
io
Ans - c
ot
...................................................
m
Noting and protesting is compulsory in case of:
a. Foreign bill
o
b. Inland bill
pr
c. Both the above

nk
Ans - a
...................................................
a
A cheque drawn payable to A or B or order is presented across the counter for payment by
B alone
.b
a. The cheque is to be returned as it can not be drawn payable to A or B.

w
b. Payment can be made after properly identifying B

c. Payment should be refused unless B produces the death certificate of A
w
d. Payment can be made with the consent of A only

w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A cheque for RS 10000/- has been presented in clearing and the cheque has been debited to
the respective account. You receive a stop payment instruction from the drawer before the
co
returns are sent by the branch. In this situation You will
a. return the cheque after cancelling the debit entry

b. since account is already debited you can not accept stop payment instruction.
s.
c. It is up to the banker to decide
am
Ans - a
...................................................
x
A cheque drawn on account on which garnishee order is served .The cheque should be
ne
returned with the remark
a. Garnishee order received

b. refer to drawer
io
c. account attached
d. orders not to pay
ot
Ans - b
m
...................................................
A is having a current account and the minimum balance required is Rs5000/. The present
o
balance is Rs 6000/-.A cheque is presented in clearing for Rs 6000/- Now

pr
a. You will return the cheque

b. You will pass the cheque
nk
c. You will pass the cheque and close the account

a
Ans - b
...................................................
.b
In a bill the name of the “drawee in case of need” is mentioned. When it was presented to
w
the drawee it was dishonoured. Now the bill is said to be dishonoured

w
a. Since it was dishonoured by the drawee

b. only after it is presented to the drawee in case of need and dishonoured by him
w
c. It is not compulsory to present it to drawee in case of need

Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
With the amendment to N.I act on 01-04-1989[sec 138]
co
Dishonour of cheques for insufficiency of funds is deemed an offence. the drawer of the
cheque may be punished
a. Imprisonment for a term up to 1year or fine upto twice the amount of the cheque or with
both
s.
b. Imprisonment for a term of 2 years
c. fine up to thrice the cheque amount
am
d. imprisonment upto 2 years or fine which may extend to twice the amount of the amount
of cheque or with both
Ans - d
x
...................................................
ne
Which of the following is a foreign bill
a. A bill drawn in sets

io
b. A bill drawn at Chennai on a party in Calcutta and payable at Colombo
c. a bill drawn at Mumbai on a party in Newyork payable at New Delhi
ot
m
Ans - d
...................................................
o
Order instruments are negotiated by

pr
a. Endorsement
b. delivery
nk
c. endorsement & delivery

d. an order instrument can not be negotiated
a
Ans - c
...................................................
.b
A endorses a cheque SANS RECOURSE to B. B endorses it to C and C to A. If the cheque is

w
dishonored
w
a. A is not liable to B and C and also can not claim from them
b. A is not liable to B & C but can claim from them as an endorsee
w
c. A can claim from C only

d. A can claim from B only
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A cheque payable to Ratan singh is endorsed by him in blank and delivered Lakhan singh.
Mr. Lakhan singh adds the following above the blank endorsement made by Ratan singh “
co
pay Magan singh or order” and handed over the cheque to Mr. Magan singh. Which of the
following is correct
a. The cheque is rendered invalid as there is a material alteration
s.
b. Mr lakhan singh is only liable if the cheque is dishonored
c. Mr Ratan singh is only liable if the cheque is dishonored
am
d. The cheque is valid and Mr Lakhan singh incurs no liability as an endorser
Ans - d
...................................................
x
ne
A cheque of Central Bank of India bears a round stamp of Dena Bank and collection number
of the bank. The cheque is
a. Generally crossed
io
b. specially crossed to Dena Bank
c. uncrossed
ot
m
Ans - b
...................................................
o
Bill of lading and railway receipts are:

pr
a. Negotiable instruments
b. Accepted as negotiable instruments
nk
c. Non-negotiable instruments
a
Ans - b
...................................................
.b
Which one of the following is not negotiable instrument:

w
a. A delivery order
w
b. A currency note
c. A letter of credit
w
d. All the above
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Rameshwar Dass issued a bearer cheque in favour of Mr.Ramneet but he expired before he
could handover the cheque to Mr.Ramneet. Whether the negotiation is complete and how
co
Such a negotiable instrument is transferable only by:
a. No & Endorsement
b. No & Delivery
s.
c. Yes & Endorsement and delivery
am
Ans - b
...................................................
x
An order cheque is transferable only by:
ne
a. Endorsement
b. Delivery
c. Endorsement and delivery
io
d. Blank endorsement
E. All the above
ot
Ans - c
m
...................................................
Which of the following is not a negotiable instrument:

o
pr
a. A postal order
b. An LIC policy
c. A share certificate
nk
d. All the above
Ans - d
a
...................................................
.b
The holder of a negotiable instrument is holder in due course if (state which is not true out
of the following):
w
a. He receives the instrument in good faith and without negligence

w
b. He receives the instrument for any type of consideration

c. He receives the instrument before its maturity
w
d. All the above
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Payment in due course means, payment (which of the following is not correct):
co
a. According to apparent tenor of the instrument
b. Must be made in good faith and with negligence
c. Must be made to the person in possession of the instrument in circumstances without any
doubt or suspicion.
s.
d. All the above.
am
Ans - b
...................................................
Which of the following is payment in due course:
x
ne
a. Crossed cheque paid over counter
b. Cheque with forged signatures of the bearer.
c. Bearer cheque with endorsement on it even if it is forged.
d. Cheque paid after receipt of garnishee order.
io
Ans - c
ot
...................................................
m
An inland instrument is one, which is:
a. Drawn or made in India

o
b. Made payable or drawn on a person resident of India

pr
c. Both the above

nk
Ans - c
...................................................
a
A customer of your branch issues a cheque payable cash or bearer. This is presented by a
minor of 16 years of age for payment at the counter:
.b
a. Bank can pay as cash would be treated as bearer

w
b. Bank should return the cheque

c. Bank should contact the drawer
w

w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A customer of your branch issues a cheque, which is written in three different inks and in
two different handwritings. The cheque is presented at the counter for payment:
co
a. Payment should be refused
b. It should be paid
c. Confirmation from drawer sought
s.
am
Ans - b
...................................................
If a garnishee order has been received in the account, what memo should be appended
x
while returning further cheques in the account:
ne
a. Garnishee order received
b. Refer to drawer
c. Both the above
io
ot
Ans - b
...................................................
m
A cheque issued by director of Limited Company is presented for payment after death of the
director. In this case:
o
pr
a. Bank cannot pay the cheque

b. Bank can pay the cheque
c. Bank should contact the Co.
nk
Ans - b
a
...................................................
.b
If a cheque is presented for payment through clearing house is returned with some reason.
Returning memo is enclosed to comply with:
w

w
b. RBI Act
c. Banking Regulations Act
w
d. None of the above but it is a practice.
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Which of the following is a material alteration:
co
a. A bearer cheque converted to order
b. Special crossing converted to general crossing
c. Crossing a cheque
d. All the above
s.
Ans - b
am
...................................................
Which of the following alterations is not a material alteration:
x
a. Converting order to bearer cheque
ne
b. Crossing of a cheque
c. Changing payee’s name
d. All the above
io
Ans - b
...................................................
ot
An order cheque was issued in favour of A who endorsed that cheque in favour of B. The
m
cheque was lost in transit and found by C who takes the payment with forged endorsement.
Whether Bank is
o
a. Discharged from its liability because payment is made in due course

pr
b. Liable as it does not confer title on C

c. Liable for half the amount
nk
Ans - a
...................................................
a
A cheque is presented for payment on account of Mr.Hari at counter. A token has been
.b
issued and cheque passed for payment, but payment has not been made by the cashier and
during this period garnishee order is received:
w
a. Order will apply to the amount of cheque.

w
b. It will not apply since the cheque has been passed

c. Order would become in-effective
w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Your branch receives an Attachment order from Income-tax Officer against Mr.Shiva for a
sum of Rs.13500, who does not maintain any account with the branch in his single name.
co
But there is a saving bank account in the joint names of Shiva and Mrs.Parvati which shows
a credit balance of Rs.28532:
a. the attachment order will not apply to the joint account
s.
b. the position may be clarified to the Income-Tax Officer by a letter and the operations in
the account should be stopped pending final order of the income tax officer
am
c. A sum of Rs.13500 should be remitted to the income tax officer to the debit of the joint
account as the shares of joint holders in such account is presumed to be equal, until the
contrary is proved, in terms of section 226(3) (ii) of the income tax act, 1961.
x
Ans - c
ne
...................................................
The garnishee order is not applicable to:

io
a. Amount lying in foreign accounts of the judgement debtor
b. Articles of judgement debtor lying in the safe custody
ot
c. Both (a) and (b)
m
Ans - d
...................................................
o
pr
A garnishee order is served on the bank’s Head Office at Mumbai against an account
maintained by Nariman Point branch.
nk
a. The garnishee order will not be operative against the branch and hence will be referred
back to the court
b. Service of the order on the Head Office is service on all the branches of the bank in the
a
jurisdiction of the court and hence is operative

c. The head office will send the order to Zonal/Regional office for being communicated to
.b
the branch through proper administrative hierarchy maximum within thirty days from the
date of the order
w
d. None of these.
w
Ans - b
...................................................
w
Following types of forums are available under the Act:
a. District forums
b. State forums
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. National commission
d. All the above.
co
Ans - d
...................................................
s.
Validity period of a cheque can be reduced:
am
a. by the drawer by mentioning the same on the instrument
b. by the drawee
c. by the payee
x
ne
Ans - d
...................................................
Cash Payment of order cheques should be made:

io
a. on proper identification of the payee
ot
b. without identification
c. through bank only
m
Ans - a
o
...................................................
pr
A cheque is not stated to payable to bearer or order. It is payable to:

nk
a. payee
b. payee or order
c. payee or bearer
a

.b
Ans - a
...................................................
w
For considering an offence u/s 138 of NI Act, it is essential that:

w
a. cheque is presented within its validity period

w
b. payment should be demanded within 30 days of return of the cheque

c. Drawer should have failed to pay within 15 days from receipt of the notice.
d. All the above.
Ans – d
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A person issuing a cheque commits an offence if the cheque is dishonoured for insufficiency
of funds, w.e.f.:
co
a. April 01, 1986
b. April 01, 1987
c. April 01, 1988
s.
d. April 01, 1989
am
Ans - d
...................................................
What penalty in such cases is fixed:
x
ne
a. imprisonment for a term up to two year
b. fine up to two times the amount of cheque
c. a & b above
io
Ans - c
ot
...................................................
m
Which court is competent for trying cases u/s 138 of NI Act:
a. any court
o
b. Metropolitan Magistrate or 1st class judicial magistrate

pr
c. High courts
nk
Ans - b
...................................................
a
A garnishee order is applicable to

.b
a. Demand deposits
b. Time deposits whether due or to become due
w
c. Both (a) and (b)

w
Ans - c
w
...................................................
As per CPA, consumer is a person:
a. who hires many service for consideration

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. the consideration may be paid or partly paid or promises
c. any person who is beneficiary of a service hired by others
co
d. all the above
Ans - d
...................................................
s.
While collecting bill of exchange for customers:
am
a. The bank does not get any protection
b. Protection is available as per Banking Regulations Act.
c. Protection is available as per Negotiable instruments act.
x
ne
Ans - c
...................................................
io
In case the bill received for collection is not paid by the drawee:
ot
a. Bank should return the bill immediately
b. Bank should act according to directions of remitting bank / drawer.
m
c. Bank should wait for the payment as per its discretion.

o
Ans - b
pr
...................................................
The supply bills are collected by the banks on the basis of

nk
a. Receipted challans
b. An order
a
c. Bills of exchange
d. Power of attorney
.b
Ans - a
w
...................................................
w
A issues a cheque for Rs 10000/- to M/S R.K charitable trust as donation. The cheque was
returned unpaid with reasons “Funds Insufficient”
w
a. The Trust can file a criminal complaint under sec-138 of N.I act
b. No criminal complaint can be filed as the cheque was not issued for any discharge of
liability
c. Criminal complaint can be filed only if it was returned for the second time
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
co
Ans - b
...................................................
The transferee can not get better title than the transferor in case of
s.
a. A/C payee in crossing
am
b. not negotiable in crossing
c. special crossing
x
Ans - b
ne
...................................................
As per the new guidelines, a Micro or Small Enterprise (as defined in the MSMED Act 2006)
may be said to have become SICK,
io
a. any of the borrowal account of the enterprise remains NPA for three months or more
ot
b. there is erosion in the net worth due to accumulated losses to the extent of 50% of its net
worth during the previous accounting year
m
c. either a or b
d. a and b
o
Ans - c
pr
...................................................
MSMES have said to have reached “HAND HOLDING stage” if

nk
a. There is delay in commencement of commercial production by more than six months for
reasons beyond the control of the promoters
a
b. The company incurs losses for two years or cash loss for one year, beyond the accepted
timeframe
.b
c. The capacity utilization is less than 50% of the projected level in terms of quantity or the
sales are less than 50% of the projected level in terms of value during a year.
w
d. in case of any one of the above events

w
Ans - d
...................................................
w
What is the relationship when a persons raised loan from a bank:
a. borrower and lender,

b. debtor and creditor
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. loanee and banker
d. principal and agent
co
Ans - b
...................................................
s.
A customer deposits Rs.3000 with the bank for remittance by way of telegraphic transfer for
credit of Z’s account at other station.
am
The relationship is that of
a. principal and agent
x
b. beneficiary and trustee
ne
c. debtor and creditor
d. bank and a customer
Ans - a
io
...................................................
ot
A customer’s cheque is received in a current account where balance is inadequate.
Customer has a RD account also the amount in which
m
is sufficient to cover the cheque. The bank will:

o
a. not pass the cheque as funds are not available for the cheque
pr
b. send an intimation to the customer

c. permit overdraft without request
d. none of the above.
nk
Ans - a
...................................................
a
Committee on customer service which submitted its report during 1977 is known as:
.b
a. Talwar Committee
w
b. Tarapore Committee
c. Goiporia Committee
w
d. Tandon Committee
w
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Through an over sight, the bank credits a sum of Rs.2 lac to the current account of M/s.Ram
Lal Pvt.Ltd.a joint stock company. When the mistake is detected, the company goes in for
co
liquidation. What is relationship between the bank and the company:
a. Bailer-bailee
b. Creditor-debtors
s.
c. Debtor-creditor
d. Beneficiary-trustee
am
Ans - b
...................................................
x
Bankers are supposed to maintain secrecy of customer’ account, under which Act:
ne
a. RBI Act
b. Banking Regulation Act
c. Negotiable Instrument Act
io
d. All the above
ot
Ans - d
...................................................
m
Inter-bank disclosure about customer should be:

o
a. pointed information giving exact position

pr
b. general in description
c. on a specific format supplied by the bank seeking information
d. as per format approved by IBA.
nk
Ans - b
...................................................
a
Is it necessary that principal debtor must be a party to document of guarantee?

.b
a. Yes
w
b. No
c. needs further information to answer the question
w

w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A Govt. bill can be endorsed
co
a. any no. of times
b. only once
c. twice
d. thrice
s.
Ans - b
am
...................................................
A cheque issued by Govt. or by RBI account is valid (otherwise validity not restricted) for:
x
a. 12 months
ne
b. 9 months
c. 6 months
d. for ever till paid
io
Ans - c
...................................................
ot
A pensioner gives a power of attorney in B’s favour to collect pension on his behalf:
m
a. bank shouldn’t accept it

b. bank may accept it
o
c. bank may obtain RBI permission

pr
Ans - a
nk
...................................................
A pensioner is required by the paying branches:

a
a. to produce non-marriage certificate

.b
b. to undertake to refund excess payment if any

c. life certificate
w
d. all the above

w
Ans - d
...................................................
w
For getting pension from a bank, branch selection is made by:
a. the treasury officer

b. employer
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. pensioner
d. Govt.
co
Ans - c
...................................................
s.
Pension cannot be credited in:
am
a. saving bank account
b. current account
c. joint account with a relative with either/ survivor payment option
x
ne
Ans - d
...................................................
Which of the statement is incorrect?

io
a. There are 3 parties in the contract of guarantee
ot
b. There are 2 parties in the indemnity
c. The liability in the indemnity is secondary and conditional
m
d. The liability in the guarantee is secondary and unconditional
Ans - c
o
...................................................
pr
The contract of guarantee requires concurrence of

nk
a. any one of parties involved in contract

b. minimum 2 out of total persons involved in the contract
c. Consent of all parties to the contract
a

.b
Ans - c
...................................................
w
Please tick right answer. As per revised RBI guidelines

w
a. The banks are permitted to issue of guarantees by banks favouring other banks/FIs/Other
w
lending agencies for the loans extended by the latter subject to strict compliance with
conditions specified there in.
b. Banks are precluded from issue of guarantees favouring banks/FIs/Other Lending
agencies
c. Banks can only issue guarantees favouring Financial Institutes subject to compliance with
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
conditions stipulated therein
co
Ans - a
...................................................
s.
The guarantees issued favouring other banks/FIs - the assets financed by the latter will have
--------charge to the bank, which is issuing guarantee.
am
a. First charge
b. Second charge
c. Paripassu charge
x
d. No charge
ne
Ans - a
...................................................
io
Bank should ensure compliance with the ------------- recommendations and other internal
requirements, relating to issue of guarantees to obviate the possibility of frauds in this area
ot
a. Tandon committee
m
b. Chore committee
c. Khannan committee
d. Ghosh committee
o
pr
Ans - d
...................................................
nk
Guarantees above RS--------------- should be issued under two signatures in triplicate one
copy each for the branch, beneficiary and Zonal Office.
a
a. Rs.25000/-
b. Rs.10 000/-
.b
c. Rs.50,000/-
d. Rs.5000/-
w
Ans - c
w
...................................................
w
Bank guarantee is to be given for a definite period, definite amount and specific purpose. If
any deviation from these are to be treated as
a. Onerous
b. restrictive
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. can not say
co
Ans - a
...................................................
s.
Can the bank issue guarantee in favour of consortium member for their lending to the
customer under consortium lending?
am
a. Yes
b. No.
c. upto 30% of limit sanctioned can be guaranteed
x
ne
Ans - b
...................................................
io
Bharat Sanchar Nigam Ltd. requests its bank to provide the number of bank accounts of its
20 employees, for disbursement of salary through their bank accounts. What would you do:
ot
a. advise the numbers

m
b. will not advise the numbers

c. will advise after having consent of the account holders
d. any of the above
o
pr
Ans - c
...................................................
nk
M/s.Shalimar Paints Ltd. have asked your branch to provide a credit report on M/s.Dharuva
Paints, to whom M/s.Shalimar Paints Ltd.want to give a dealership. What would you do:
a
a. will not provide the credit report

b. will provide the credit report
.b
c. credit report would be provide only if a request comes from Dharuva Paints
d. any of the above.
w
Ans - c
w
...................................................
w
For branch authorization policy, branches are classified as Tier 1 to Tier 6. semi urban
centres will fall under
a. Tier 1 To Tier 3
b. Tiers 2, 3, and 4
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. Tiers 5 and 6
d. Tier3 to tier4
co
Ans - b
...................................................
s.
RBI has given the option to pay interest on savings deposits and term deposits at intervals
shorter than quarterly intervals. This will not be applicable to
am
a. NRO accounts
b. NRE accounts
c. domestic accounts
x
d. FCNR(B)
ne
Ans - d
...................................................
io
Depositor education and awareness is to be created by RBI out of
ot
a. grant by central government
b. grant by state governments
m
c. some percentage of profit from scheduled banks

d. banks unclaimed deposits
o
Ans - d
pr
...................................................
No banking company shall pay out directly or indirectly by way of commission, brokerage,
nk
discount or remuneration in any form in respect of any shares issued by it, any amount
exceeding in the aggregate two and one-half percent of the
a
a. paid-up value of the shares

b. price at which such shares are issued
.b
c. price at which such shares are issued inclusive of premium on such shares
d. price at which such shares are issued exclusive of premium on such shares
w
Ans - c
w
...................................................
w
How much foreign exchange is allowed for visiting BHUTAN
a. usd 500
b. usd 2000
c. usd 100
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
d. no foreign exchange
co
Ans - d
...................................................
A Scheduled Bank in addition to the average daily balance is required u/s 42 of RBI Act to
s.
maintain in India, assets, the value of which shall not be less than such percentage not
exceeding _______ of the total of Demand and Time Liabilities in India as on the last Friday
am
of the second preceding fortnight –
a. 75%
b. 65%
x
c. 50%
ne
4]45%
Ans - d
...................................................
io
In terms of sec 138 of N.I act 1881 ,the payee should give notice within----days of receipt
ot
return of cheque for insufficient balance
m
a. 15 days
b. 30days
c. 1 month
o
d. 48 hours
pr
Ans - b
...................................................
nk
A is having a savings account and he has nominated his minor son B as nominee. Now he
has to appoint a person on behalf of the nominee. The person can be
a
a. only mother
.b
b. blood relatives
c. If mother is not alive blood relatives
w
d. any person
w
Ans - d
...................................................
w
An account holder has issued a cheque and was cleared. After sometimes the customer
requests you to give him the original cheque
a. It can be given
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. it can not be given
c. it can be given only if court demands it
co
d. only a certified copy can be given
Ans - a
...................................................
s.
A and B are two account holders of your branch and are having a dispute .A has filed a case
am
against B .Now your branch receives a notice from A‟s Lawyer to appear as a witness in
court to prove an entry in the pass book issued by your branch. In this situation
a. You can depute your staff as Bank‟s passbook entry is to be proved
x
b. you will ignore it as Bank is not a party to the case
ne
c. you will instruct the Lawyer to write to your head office
4]You will depute provided B also agrees to it at the expenses of A
Ans - b
io
...................................................
ot
In an account, your head office has advised you to file a suit. The last day of filing the suit is
28-12-2003 and it is Sunday and the court is closed. and the next day is a bank holiday[court
m
is opened].The suit can be filed on
a. 30-12-2003
o
b. on or before 29-12-2003
pr
c. on or before27-12-2003
d. 3days grace is available from the last day and hence it can be filed upto31-12-2003
nk
Ans - b
...................................................
a
How many maximum directors can be there in a company as per company act 2013
.b
a. 10
b. 15
w
c. 20
d. no restriction
w
Ans - b
w
...................................................
On customer’s request over phone, the information about his account:
a. Should not be given

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. May be given at discretion of the bank
c. May be given if bank is satisfied that on the other side of the phone is the concerned
co
customer only
Ans - c
s.
...................................................
am
A party directly approaches you for status report on one of your customers. In this case:
a. You will furnish the status report in general terms disclaiming all responsibilities on your
part.
x
b. You will not give the status report.
ne
c. You will give the status report provided it does not contain any reference to the account
maintained by the customer
d. None of these.
io
Ans - b
...................................................
ot
A party is having the following accounts with your branch a] FDR for Rs 5000/-in his single
m
name maturity value Rs 6500/-b] another FDR with his wife for Rs 19500/-.The FDR in his
single name has matured and he wants cash payment. It can be
o
a. Allowed
pr
b. not allowed
c. take an undertaking and pay it
d. pay cash only if he gives his PAN
nk
Ans - b
...................................................
a
Under KYC norms, how much INR can be given to a NRI OR Tourist by an Authorised money
.b
changers in the form of cash while exchanging foreign exchange

w
a. USD 2500
b. USD 3000
w
c. USD 500
d. any amount
w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
In case of power of attorney, the principal and attorney can be
co
a. minor and major
b. major and minor
c. major and major
d. 2 and 3
s.
Ans - d
am
...................................................
For the purpose of Medical Treatment without any estimate ,how much amount is
admissible under FEMA for remittance abroad
x
ne
a. USD 5000
b. USD 25000
c. USD 1 LAKH
d. USD 250000
io
Ans - d
ot
...................................................
m
Which of the following statement is incorrect in view of the provisions contained in the
Negotiable Instruments Act, 1881?
o
a. The holder may convert a special crossing into a general crossing or he may cancel a
pr
crossing altogether under his signature.

b. The holder may add general or special crossing to an uncrossed cheque
c. If a cheque is already crossed generally, the holder may add special crossing to it
nk
d. Where a cheque is crossed generally or specially, the holder may add the words “Not
Negotiable”
a
Ans - a
...................................................
.b
Account Payee in crossing is addressed to

w
a. Collecting Banker
w
b. Payee
c. Drawee Banker
w
d. 1 and 2
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A crossed cheque
co
a. Must be credited to the account of the payee or endorsee
b. May be paid in cash across the counter
c. Should be paid to a banker only
d. None of these
s.
Ans - c
am
...................................................
Crossing may be added to :
x
a. Order cheques only
ne
b. Bearer cheques only
c. Both of 1 & 2
d. None of these
io
Ans - c
...................................................
ot
“Account Payee” in crossing with two transverse parallel lines is

m
a. Special crossing
b. General Crossing
o
c. Restricted crossing
pr
d. None of these
Ans - b
nk
...................................................
In the case of a bill of exchange :

a
a. General crossing means that the amount may be paid only to a banker
b. Special crossing means that the amount may be paid only to the Bank named therein.
.b
c. Crossing has a restricted application

d. Crossing has no meaning
w
Ans - d
w
...................................................
w
Form no 16 is to be furnished to staff and pensioners
a. by 15th April
b. by 30th April
c. By 31st may
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
d. 31st july
co
Ans - c
...................................................
ABC is a partnership firm [with three partners A, B and C maintaining a current account,
s.
with the operational instructions of „any one of the partners‟. A cheque signed by partner A
is countermanded by A himself. After two days, you receive a letter signed by A revoking the
am
stop payment instructions. How will you handle the request of A?
a. Since A had countermanded the payment of the cheque, revocation by A is sufficient

b. All the partners should sign the revocation letter
x
c. Any of the partners can sign the revocation letter as the account can be operated by any
ne
one of the partners
Ans - b
io
...................................................
ot
A banker is bound to disclose the affairs of an account, under which of the following:
m
a. By court orders under Bankers’ Book Evidence Act.

b. Under RBI Act
c. Under Banking Regulation act
o
d. All the above

pr
Ans - d
...................................................
nk
Mrs. Radha wife of Mr.Krishan Kumar Singh maintains a substantial savings account at your
bank. Mr. KrishanKumar approaches you for knowing the details of Mrs. Radha’s account. In
a
this case:
.b
a. Disclosure would be justified because a husband is deemed to be an agent of the wife in

all financial dealing.
w
b. Disclosure would be justified because there is no secrecy between husband and wife as a
result of matrimonial relationship.
w
c. Disclosure would be justified provided no divorce petition is pending in any court.

d. Disclosure would not be justified.
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Mr. Rajbahadur is having a Fixed deposit of Rs.15,000/- at your branch. Since he had
borrowed some money from Sher Bahadur, he endorsed the FDR in favour of Sher Bahadur
co
and signs on the back of the FDR. Mr. Sher Bahadur visits your branch on due date and
request for payment. The Bank will:
a. Obtain the discharge from Sher Bahadur and make the payment
s.
b. Make the payment only to Rajbahadur
c. Make the payment to Sherbahadur if he is maintaining a account with the branch
am
Ans - b
...................................................
x
ne
Which of the following is true
a. Promissory notes and Bills of exchange are to be stamped as per Indian stamp Act 1899
b. cheques and bills of exchange are to be stamped
c. Cheques need not be stamped
io
d. 1&3
ot
Ans - d
...................................................
m
How many sections are there in negotiable instrument act?

o
a. 138
pr
b. 146
c. 147
d. 148
nk
Ans - c
...................................................
a
"CTS-2010 standard", is related to

.b
a. computer language
w
b. security feature in bank note

c. The benchmark prescriptions for standardization of cheque books
w
d. accounting standard
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A and B are having a savings account with operational instructions either or survivor and C is
the nominee. Now A has expired. The balance in the account is payable to...
co
a. C only
b. B only
c. legal heir of A and B
s.
d. C and B only
am
Ans - b
...................................................
While making the payment to a blind person, the payment:
x
ne
a. Should be got witnessed by the person who has signed on the A/C opening card
b. Can be made without witness
c. Witness must be person other than the passing official
d. (a) and (c)
io
Ans - a
ot
...................................................
m
An illiterate person is not provided with facility of a cheque book because:
a. He cannot draw a negotiable instrument

o
b. His presence in bank is essential at the time of withdrawal as he is to put his thumb
pr
impression before the passing official

c. He is not competent to contract
d. Can be issued but at the time of issuing of cheque books, thumb impression of the
nk
account holder should be duly affixed and authenticated by the bank official.
Ans - d
a
...................................................
.b
Whom should a banker consider to be a customer of the bank?

w
a. A person who has been coming to the bank for purchasing demand drafts, mail transfers
and telegraphic transfers for the last five months; or
w
b. A person who has been retiring bills from the branch for the last 7 months; or
c. A person who has been visiting the branch for encashing cheques for few months, or
w
d. A person who has opened a savings account only two days ago.
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
According the acceptable prevalent definition a customer is a person:
co
a. Who has any type of bank account
b. Who is continuously dealing with the bank
c. Both ((a) and (b)
s.
Ans - a
am
...................................................
Gurdeva, an illiterate customer in your branch, who is maintaining a savings account,

requests you permit him to authorise his friend Bhisham to operate his account:
x
ne
a. An illiterate, being incompetent to contract, can not appoint an agent; or
b. Since an illiterate person cannot grant a power of attorney his request can not be
complied with or
c. The request of the illiterate customer may be acceded to on his executing a power of
io
attorney; or
d. The request of the illiterate customer may be acceded to provided the transactions on
ot
the account are allowed on a restricted scale.
m
Ans - c
...................................................
o
If a banker wants to take protection u/s 131 of the Negotiable Instruments Act, 1881, the
pr
word `customer’ means:
a. Any person who steps in to the bank for any lawful banking business
nk
b. A person who approaches the bank for credit limits for productive activity.
c. A person who has an account, properly introduced with the bank.
d. None of these.
a
Ans - c
.b
...................................................
w
When a person is maintaining a deposit account with a bank, the relationship is that
w
a. Debtor and creditor

b. Trustee and beneficiary
w
c. Principal and agent

d. Chief and agent
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
When the bank accepts articles for keeping in safe custody, the relationship between the
banker and customer is that of:
co
a. Trustee and beneficiary
b. Bailor and bailee
c. Chief and Agent
s.
am
Ans - b
...................................................
In case of collection of cheques and bills, the relationship of the banker with the customer is
x
that of:
ne
a. Banker as agent
b. Bank as trustee
c. Banker as debtor
io
d. Banker as bailor
ot
Ans - a
...................................................
m
In case of lockers, the relationship between the banker and customer is that of a:
o
a. Bailor and bailee

pr
b. Trustee and beneficiary

c. Lessor and lessee
nk
Ans - c
...................................................
a
When a banker is acting on the standing instructions of a customer to pay school fee of the
.b
customer’s son, their relationship is of:

w
a. An employer and an employee

b. An owner and a servant
w
c. A trustee and beneficiary

d. A principal and an agent
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
When a bank is collecting a cheque of newly opened FD account:
co
a. Banker would not get protection because it has not collected the cheque for a customer
b. The banker will get full protection if the account has been duly introduced.
c. The banker will not get protection because the first entry in the account is not in cash.
s.
Ans - b
am
...................................................
A has got a term loan account and the balance of Rs 10000/-has been recalled. You receive a
garnishee order from court for RS 10000/ attaching the credit balance of RS 10000/-
x
maintained by A. you will
ne
a. Exercise right of set off against the credit balance and inform the court accordingly
b. comply with the court order
c. remit 50% and appropriate 50 % towards loan account
io
d. seek instructions from court
ot
Ans - a
...................................................
m
Satish is having a saving account and he is also attorney of saving account holder B. You
receive the notice of death of Mr. Satish. Two cheques signed by Satish one in his saving
o
account and the other one in the account of B are presented in clearing. You will
pr
a. return both the cheques

b. pass both the cheques
nk
c. pass the cheque of account B and return the cheque of Satish account
d. pass the cheque of Satish account and return the cheque of account B
a
Ans - c
...................................................
.b
A cheque dated 20-12-2011 was paid on 10-10-2011.The account holder gives stop payment
w
instruction of the above cheque on 15-11-2011.The bank

w
a. will refuse to accept the instruction as the cheque is already paid.

b. Will refuse as per the recent Supreme court Judgement
w
3]will refuse as issuance of post dated cheque is illegal

4]will accept the stop payment instruction
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
A taxi is financed by bank and it is hypothecated to bank. The taxi met with an accident and
the passengers were injured. Compensation can be
co
a. claimed from the bank
b. can not be claimed from bank
c. claimed equally from Bank & Owner
s.
d. Bank should pay the compensation and recover from the owner.
am
Ans - b
...................................................
Mortgage is defined under
x
ne
a. contract act
b. sale of goods act
c. transfer of property act
io
Ans - c
ot
...................................................
m
The mortgager transfers the mortgaged property to the mortgagee on the condition that it
will be retransferred upon payment of mortgaged money.
o
a. Simple mortgage
pr
b. English mortgage
c. equitable mortgage
d. mortgage by conditional sale
nk
Ans - b
...................................................
a
Natural guardian of an illegitimate child will be:

.b
a. father
w
b. as decided by the court

c. mother
w
d. none of the above.

w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
While opening an account of a minor, his/her date of birth should be written;
co
a. In account opening form
b. On specimen signature slip
c. On ledger folio
d. On all the above
s.
Ans - d
am
...................................................
Ashok got converted to Christianity but his wife continued to be Hindu. In such case, for
their minor son:
x
ne
a. he will continue to be natural guardian of his child
b. he will cease to be the natural guardian of his child
c. he will cease to be the natural guardian which will be bestowed upon the mother
d. he can appoint a guardian through a will
io
Ans - a
ot
...................................................
m
The no. of partners in a partnership firm should not exceed:
a. 50
o
b. 15
pr
c. 10
d. 20 (10 for banking business)
nk
Ans - d
...................................................
a
For opening an account in partnership firm’s name:

.b
a. It should be a registered firm

b. Registration of firm is not necessary though desirable
w
c. Registration is necessary if partners are illiterate or minor.

d. Registration is necessary to give a loan.
w
Ans - b
w
...................................................
For opening a current account in the name of firm:
a. Partnership deed should be thoroughly checked and a copy should be kept on record.
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. In case it is a registered firm the copy of the deed is not required.
c. Partnership deed is required only when any of the partners is illiterate
co
d. It is not necessary to insist upon partnership deed, though it is desirable to have
partnership deed.
Ans - d
s.
...................................................
am
M/s. Gram Udyog a sole-proprietorship concern of Mr.Amrit Lal maintain a current account
at your branch which is operated by the Munim of the firm under authority from Mr.Ajmrit
Lal. He advises the bank to cancel the authority given to the Munim. Subsequently, a cheque
signed by the Munim, bearing date prior to the date of cancellation of authority is
x
presented for payment. Will you pay the cheque?
ne
a. The cheque may paid since it is drawn prior to the date of revocation of authority.
b. The cheque may be paid since a revocation is always subject to the cheques already
drawn by the agent.
io
c. The cheque can not be paid after the bank is informed of the cancellation of authority.
d. None of these.
ot
Ans - c
m
...................................................
NI Act is applicable in:

o
pr
a. Punjab
b. The entire country
c. Entire country except J & K
nk
d. Northern Eastern States
Ans - b
a
...................................................
.b
A collecting bank gets protection u/s 131 of NI Act only if:

w
a. The collection is in good faith and without negligence

b. The Bank collects only on behalf of the customer
w
c. The Bank collects only crossed cheques.

D. All the above.
w
Ans - d
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
How many times a negotiable instrument can be negotiated:
co
a. Once
b. Twice
c. Thrice
d. No limit
s.
Ans - d
am
...................................................
On payment of which of the following, the payment will not be considered a payment in due
course?
x
ne
a. Normal cheque
b. Truncated cheque
c. Electronic Cheque
io
Ans - d
ot
...................................................
m
A minor cannot be a nominee:
a. Yes
o
b. No, he can be.

pr
c. Correct
nk
Ans - b
...................................................
a
Natural guardian of an adopted minor shall be:

.b
a. adoptive father
b. real father
w
c. as declared by the court

d. both of them
w
Ans - a
w
...................................................
The liability of a deceased partner is
a. Upto date of his death

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. Till public notice
c. Earlier of the above
co
Ans - a
...................................................
s.
A firm having three partners is having a current account and a cheque is presented for
am
payment drawn by one of partners after his death. The bank:
a. Will not pay the cheque

b. Will pay the cheque
x
c. Can pay, after confirmation of other partners.
ne
Ans - c
...................................................
io
When the cheques are received for collection, the bank brands all the documents with
ot
crossing stamp so that:
m
a. Bank gets protection u/s 131 of Negotiable Instruments Act.

b. To avoid unauthorized and fraudulent use of document.
c. To make clear that documents are sent through bank
o

pr
Ans - b
...................................................
nk
A firm is registered with

a
a. Registrar of firms
b. Registrar of companies
.b
c. Registrar of deeds
w
Ans - a
w
...................................................
w
U/s. 18 of Indian Partnership Act, a partner of the firm is:
a. An employee
b. An owner
c. A trustee
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
d. A principal & agent
co
Ans - d
...................................................
Which of the following is not negotiable instrument?
s.
a. Cheque
am
b. Dividend warrant
c. Bank draft
d. Bill of exchange
x
Ans - b
ne
...................................................
Protection is available to paying banker in paying drafts u/s..of NI Act

io
a. 85
b. 85A
ot
c. 131
d. 130
m
Ans - b
...................................................
o
pr
Drawee of a negotiable instrument is a person:
a. who pays the amount

nk
b. who draws the instrument

c. who receives the payment
a
Ans - a
.b
...................................................
w
The bills received for collection are presented to drawee within:

w
a. Reasonable period from the date of receipt.

b. 7 days of their receipt
w
c. 24 hours of their receipt

d. 10 days of their receipt
Ans - a
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
When a documentary bill is received for collection and presented to the drawee for
acceptance or payment, the presenting bank will:
co
a. Not be responsible for genuineness of the bill
b. Make good the loss sustained by drawee if the quality of goods is not upto the mark
c. Certify all the documents attached to the bills
s.
am
Ans - a
...................................................
The revised agency commission by Govt. of India to Banks for Receipts physical mode
x
transactions is -
ne
a. Rs.12/- per transaction
b. Rs.45/- per transaction
c. Rs.50/- per transaction
io
d. Rs.65/- per transaction
ot
Ans - c
...................................................
m
The revised agency commission by Govt. of India to Banks for Pension Payment transactions
is -
o
pr
a. Rs.12/- per transaction

b. Rs.45/- per transaction
c. Rs.50/- per transaction
nk
d. Rs.65/- per transaction
Ans - d
a
...................................................
.b
Agency commission for payment of Special Deposit Scheme will be –

w
a. 9 paise per Rs.100 turnover

b. 5.5 paise per Rs.100 turnover
w
c. 10 paise per Rs.100 turnover

d. NIL
w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Form A2 is not required for Foreign Exchange Remittance for miscellaneous purposes –
co
a. If the amount does not exceed USD 5000 or its equivalent
b. If the amount does not exceed USD 25000 or its equivalent
c. The payment is made by a cheque drawn on the applicants Bank a/c
d. The payment is made by a Demand Draft 5] 1,3,4 6] 2,3,4
s.
Ans - b
am
...................................................
A firm is compulsorily dissolved, when:
x
a. All or all but one have become insolvent
ne
b. Business has been declared as illegal
c. A competent court issues order for dissolution.
d. All the above
io
Ans - d
...................................................
ot
Recently NRIs and PIOs are permitted to transfer funds maximum of Rs.1 million USD,
m
subject to payment of taxes from –
a. NRO account to NRE account

o
b. NRE to FCNR
pr
c. FCNR to NRE
d. FCNR to RFC
nk
Ans - a
...................................................
a
A minor succeeded in raising a loan from a bank, not disclosing his true age. Now he is not
repaying. In such case the Bank:
.b
a. Could have recovered the loan, if there was a guarantor.

w
b. Cannot recover this amount from the minor.

c. Can recover as banker has not acted negligently but through court of law.
w
d. Recover from guardian.

w
Ans - b
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The partners, M and S give a mandate authorising a minor to operate the account. The bank
should:
co
a. Accept the mandate
b. Should not accept
c. Accept with confirmation from guardian of the minor
s.
am
Ans - b
...................................................
Can a limited company be partner in a partnership firm
x
ne
a. Yes, because company is a legal person
b. No, because it has no physical presence
c. No because liability of a shareholder is limited
io
Ans - a
ot
...................................................
m
In a partnership firm, the liability of the partners is:

a. Limited
b. Unlimited
o
c. Limited to share
pr
Ans - b
nk
...................................................
In case, giving guarantee is not the business of the firm the guarantee letter should be
a
signed by:
.b
a. Any one of the partners

b. All the partners. Only then the guarantee can be enforced against the firm
w
c. The manager of the firm

w
Ans - b
w
...................................................
An unregistered firm:
a. Cannot file a suit against third parties

………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
b. Third parties cannot file suit against the firm
c. Both the above
co
Ans - a
...................................................
s.
Guarantees are defined in
am
a. NI Act
b. RBI Act
c. Banking Regulation Act
x
d. Indian Contract Act 1872
ne
Ans - d
...................................................
io
A partner on behalf of the partnership firm
ot
a. can give guarantee
b. cannot give guarantee
m
c. can give guarantee if business is to give guarantee

d. b & c
o
Ans - d
pr
...................................................
The bank guarantee should be for shorter period however the maturity period should not
nk
normally be more than:
a. 3 years
a
b. 5 years
c. 10 years
.b
d. 12 years
w
Ans - c
...................................................
w
A documentary bill was received for collection, which was drawn on a party maintaining a
w
current account. Peon goes to the party’s office for presentation of bill when he was
informed that drawee would be available after banking hours but during his duty hours. The
peon returned back the bills the bills department stating that drawee was not available and
narrates incidence. In this case:
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
a. The bills would be deemed as not presented
b. Drawer was right in telling the bank to present the bill at any time during his business
co
hours
c. This presentation is enough but for record purposes it should be sent by post
d. A & B
s.
Ans - c
...................................................
am
The stipulation of allowing of credit of 100% of Foreign Exchange Earnings subject to the
condition that the sum total of the accruals in the account during a calendar month should
be converted into rupees on or before the last day of the succeeding calendar month will
x
not be applicable to which of the following accounts –
ne
a. EEFC
b. RFC (Domestic)
c. RFC
io
d. Diamond Dollar Account
ot
Ans - c
...................................................
m
For working capital Limit the bank guarantee can be given not more than
o
a. 1 year
pr
b. 2 years
c. 3 years
nk
Ans - a
...................................................
a
Full form of MICR is

.b
a. Magnetic ink character record

w
b. machine ink character reading

c. magnetic ink character recognition
w
d. machine ink character ink recognition

3
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
For PMEGP, rural area means
co
a. population below 10000
b. population below 20000
c. area classified as village in revenue record of state
d. 2 and 3
s.
Ans - d
am
...................................................
If the project cost is 20 lakhs and the units located in urban area ,then the subsidy under
PMEGP for general category is
x
ne
a. 3 lakhs
b. 5 lakhs
c. 7 lakhs
d. 2 lakhs
io
1
Ans - a
ot
...................................................
m
In the above question, for special category, the subsidy will be
a. 3 lakhs
o
b. 5 lakhs
pr
c. 7 lakhs
d. 2 lakhs
2
nk
Ans - b
...................................................
a
The provision requirement on secured portion of an account remaining NPA for 2.5 years is
.b
a. 10%
b. 25%
w
c. 40%
d. 100%
w
Ans - c
w
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
Advances against which of the following securities------- will not be treated as NPA if
adequate margin is available
co
a. Gold ornaments
b. Government securities
c. NSC/IVP/KVP/LIFE POLICY
s.
d. 1 and 2
am
Ans - c
...................................................
As per RBI, rupee term deposits means
x
ne
a. domestic time deposits
b. NRE term deposits
c. NRO term deposits
d. all the above
io
Ans - d
ot
...................................................
m
What amount of loan will be eligible to fall under priority sector if given to medium
manufacturing enterprises
o
a. 2 crores
pr
b. 3 crores
c. 5 crores
d. any amount
nk
Ans - d
...................................................
a
What amount of loan will be eligible to fall under priority sector if given to medium-service
.b
enterprises
w
a. 2 crores
b. 3 crores
w
c. 10 crores
d. 5 crores
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
As per RBI NBFC can not be partner in
co
a. partner ship firms
b. limited liability partnership
c. none
d. both
s.
Ans - d
am
...................................................
Although a minor is not competent to contract yet banks open accounts in the names of
minor because:
x
ne
a. It is allowed under Negotiable Instruments Act.
b. It is allowed as per RBI Act.
c. It is allowed as per Indian contracts Act.
d. A minor can give proper discharge for the payments received, which he cannot deny.
io
Ans - d
ot
...................................................
m
In account of minor aged 17, an overdraft was created through an oversight, which minor is
not repaying. One day he comes to take the payment of FD. In this case the bank can
exercise its right of set off against FD.
o
pr
a. Yes, because it is in his name.

b. Yes, if overdraft is allowed for providing necessities to the minor.
c. No, because it was not made lawfully.
nk
Ans - c
a
...................................................
.b
The minimum no.of shareholders required for a public limited company:

w
a. 3
b. 50
w
c. 7
d. 1
w
Ans - c
...................................................
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
The maximum no. of shareholders in public limited company is:
co
a. 1500
b. 2500
c. 3500
d. No limit
s.
Ans - d
am
...................................................
In a private limited company the minimum no. of shareholders is:
x
a. 3
ne
b. 2
c. 50
io
Ans - b
...................................................
ot
In a private company maximum no. of shareholders is:

m
a. 10
b. 50
o
c. 200
pr
Ans - b
nk
...................................................
Minimum no. of directors in a public limited company is:

a
a. 4
.b
b. 3
c. 7
w

w
Ans - b
...................................................
w
What is the risk weight for housing loans upto 20 lakhs
a. 50%
b. 75%
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
c. 100%
d. 125%
co
Ans - a
...................................................
s.
What is the risk weight for housing loans to Commercial Real Estate Residential Housing
Sector (CRE-RH)
am
a. 50%
b. 75%
c. 100%
x
d. 125%
ne
Ans - b
...................................................
io
The Commercial Real Estate Residential Housing Sector (CRE-RH) will attract standard asset
provisioning of –
ot
a. 0.25%
m
b. 0.40%
c. 0.75%
d. 1%
o
pr
Ans - c
...................................................
nk
Integrated housing projects comprising of some commercial space can also be classified as
Commercial Real Estate Residential Housing Sector (CRE-RH) provided the commercial area
in the residential housing project does not exceed _____ of the total FSI –
a
a. 5%
.b
b. 10%
c. 15%
w
d. 20%
w
Ans - b
...................................................
w
………………………………………………………….……………………………………………………………………………………………
…………………………………………………………………………………………………………………………………………………………
m
co
ALL THE VERY BEST FOR YOUR EXAMS
s.
x am
SAMPLE PAPER FOR ne
io
ot
BANK PROMOTION EXAMS

o m
pr
a nk
.b
w
This collection of questions is contribution of so many persons. First of all we thank all of
w
them for their valuable contribution. Though we had taken enough care to go through the
questions, we request everyone to go through the latest RBI circulars, bank’s website and
w
other internal circulars and update yourself with the latest information through RBI website
and other authenticated sources. In case you find any incorrect/doubtful information, kindly
update us also (along with the source link/reference for the correct information).
………………………………………………………….……………………………………………………………………………………………

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BANK PROMOTION EXAMS

Debt equity ratio is :

a. Indian Partnership Act 1932

b. Indian Contract Act 1972

c. Companies Act 1956

For the purpose of change in classification of an advances from standard to sub-standard

of the following is taken:

a. two harvest seasons

c. one crop season

a. RBI guidelines, 7 banking days

minor now turned major

c. Pay the amount to the natural guardian

A contract made by a minor is:

The maximum no. of directors in a public limited company can be:

a. Bank would accede to the request.

b. Bank would not accede to the request

a. Father and mother after father’s death

The Articles of Association of a company is a documents which:

d. certificate of deposit issued by banks

In a public limited company, maximum and minimum no. of shareholders is:

d. 1000 and 100

Loan against LIC policies are given based on

d. None of the above

b. Rs.25 lac and above

A kite flying transaction represents which of the following:

a. when overdraft is allowed by a bank to a firm

d. when loan is allowed for low amounttransaction

a. Debt Recovery Tribunal

d. any of the given courts

Loan against FDR can be granted provided it is issued by

a. by the same branch only

d. any commercial bank

A document executed outside India should be stamped

a. at the time or before execution of document

c. within 4 months of receipt of document in India

The following is not a key element of Bank’s policy on KYC/AML.

Under customer Acceptance Policy Bank’s customers are classified into

a. Nil, High, Medium, Low Risk category

b. Zero, High, Medium, Low Risk category

c. Highest, High, Medium, Low Risk Category

The N.I act 1881 allows three days grace to

a. sight bills of exchange

A usance bill is presented for acceptance to the drawee. He has to accept in

Bank’s code for customers was released by

A minor, who was not born in India, would attain majority.

a. After completing age of 18 years

b. After completing 21 years of age

In case a public limited company is not able to pay to creditors, then:

a. Co. will be declared insolvent

c. A lockout would be declared

The debenture holders of a company are its:

Banks conduct such business relating to:

c. Tax authorities and railway and communication Dept.

A govt. bill is:

Pension account can be transferred from one bank to another:

a. any number of times

b. twice in life time

Life certificate is to be obtained from a pension during the months of:

a. the documents can be negotiated if otherwise in order

a. These will be forward to police and FIR will be lodged

b. the exchange of foreign exchange flows between two parties

Bank’s conduct Govt.Business on behalf of :