FEDAI DAILY QUIZ QUESTIONS ARCHIVES - GENERAL QUERIES

1. What do you understand from 'Drawal of Foreign Exchange' in context of the FEMA

1. Funds withdrawn in foreign currency from Bank Account with A D Bank by NRI customer
2. Foreign Exchange purchased for permitted transaction under FEMA from Authorised Person in India
3. Foreign Currency or Foreign Currency Travellers Cheque purchased by authorised person from visiting foreign
tourist
4. Drawing funds from RBI from IMF (International Monetary Fund)

Correct Answer : 2

Explanation : Please refer Section 3, 4 and 5 of FEMA

2. Which ministry of Government of India decide permissibility of goods for export from india and import in to India?

1. Ministry of Commerce
2. Ministry of Finance
3. Ministry of External Affairs
4. Ministry of Micro, Small and Medium Enterprises

Correct Answer : 1

Explanation : Please refer the Foreign Trade Policy 2015-20

3. Which of the following departments of RBI issue direction under FEMA? (a) Foreign Exchange Department, (b)
Department of Banking Regulations , (c) Financial Markets OPerations , partment, (d) Financial Market Regulation
Department

1. (a) and (c)

2. (b) and (d)
3. (a) and (d)
4. (c) and (d)

Correct Answer : 3

Explanation : Please refer AP(Dir) Circulars issued by RBI

4. Authorised Person comprise of ....................?

 1. Only Authorised Dealer-I
2. Only Authorised Dealer-II
3. Only Authorised Dealer-III
4. All the above

Correct Answer : 4

Explanation : Please refer S.2(c) of FEMA

5. Which document is known as 'Document of Title of Goods'?

1. Airway Bill issued by Airlines

2. Shipping Bill issued by Customs Department
3. Bill of Lading issued by Shipping Company.
4. Bill of Exchange (Hundi) drawn by seller

Correct Answer : 3

Explanation : The 'Airway Bill' is not negotiable and 'Shipping Bill' or 'Bill of Exchange' does not hold title of
goods

6. Who decides charge for Foreign Exchange services rendered by in AD Category-I banks in India?

1. RBI
2. FEDAI
3. Banks are free to determine charges for their Foreign Exchange Services
4. Banking Code and Standard Board of India (BCSBI)

Correct Answer : 3

Explanation : Please refe FEDAI Circular SPL-79/99 dated 28 September 1999

7. The Asian Clearing Union is regional body of select Asian Countries which facilitates settlement of Trade Payments
among members. Which one of the following countries is not member of ACU.

1. Afghanistan
2. Bhutan
3. Myanmar
4. Pakistan

Correct Answer : 1

Explanation : Please refer details available over www.asianclearingunion.org

8. In the case of an import LC, commission charges and out of pocket expenses are recovered from importer as
prescribed by

1. RBI
2. FEDAI
 3. Respective Individual Bank
4. None of the above

Correct Answer : 3

Explanation : Please refe FEDAI Circular SPL-79/99 dated 28 September 1999

9. FEDAI is an association of

1. AD I
2. AD II
3. a and b above
4. all banks in India

Correct Answer : 1

Explanation : FEDAI is Non-profit Company registered under section 25 of Companies Act and all AD-I category
banks are member of it

10 . Which one of the given options is not a function of the FEDAI?

1. Publishing average rates of identified nine foreign currencies for the use in compliance to AS-11 (Accounting
Standard)
2. Publishing daily foreign exchange turnover data
3. Publishing month end Revaluation Rate for important foreign currencies
4. Publishing 'Base Rate' for FCNR Deposits on the last working day of every month

Correct Answer : 2

Explanation : Refer topic 'Rates' FEDAI Home Page of FEDAI Website www.fedai.org.in. Daily foreign exchange
turnover data is published by the RBI

11 . Each of the tangible goods is represented by unique ITC HS Code. Where could one check, whether the goods with
given HS Code is permitted for import in to India?

1. Foreign Trade Policy 2015-20 (Chapter 1 to Chapter 9)

2. FTP Handbook of Procedure Volume -I
3. FTP Handbook of Procedure Volume -II
4. None of these

Correct Answer : 3

Explanation : Refer FTP Handbook of Procedure Volume -II as notified by the Department of Commerce,
Director General of Foreign Trade on 01 April 2015

12 . To which forum any dispute between two Fx Market Participant Banks related to FEDAI Rule No. 8 'Interbank
Settlement' is required to be referred?

1. Reserve Bank of India

 2. FEDAI (Foreign Exchange Dealers' Association of India)
3. FEBAI (Foreign Exchange Brokers' Association of India)
4. FBIL (Financial Benchmark India Pvt. Ltd.)

Correct Answer : 2

Explanation : Please refer FEDAI Code of Conduct

13 . What is Central Counter Party (CCP) in context of clearing and settlement functions for transactions in Money, G-
Secs, Foreign Exchange and Derivative markets?

1. Central Bank of country such as RBI in India, is called CCP

2. An entity e.g. CCIL in Indian which provides clearing and settlement services for transactions in Money, G-Secs,
Foreign Exchange and Derivative markets.
3. Industry body like FEDAI which forms the rules for Fx Market in India is known as CCP.
4. None of above

Correct Answer : 2

Explanation : Please refer the Consultaive Report of Technical Committee of the IOSCO March 2014, issued by
Bank of International Settlement and RBI Circular DBOD.No. BP.BC.82/21.06.217/2013-14 dated January 07,
2017

14 . What are the SCHOMET Items (Special Chemical, Organism, Material, Equipment and Technology) as indicated in
Appendix-3 of Schedule 2 of ITC(HS) Classification of export & Import Items under FTP?

1. Exporters of these items are entitled to special incentives under Foreign Trade Policy 2015-20
2. Items for which duty free import in India is allowed
3. These are items in negative list for which trade (Export or Import) is not permitted.
4. Trade (Export or Import) in these items require specific authorisation under Foreign Trade Policy 2015-20

Correct Answer : 4

Explanation : Please refer to Foreign Trade Policy Handbook of Procedure

15 . Who imposes sanctions by notifying name of SDN (Specially Designated National) in the list popularly known as
OFAC List (Office of Foreign Assets Control)?

1. UNO - United Nations Organisation

2. USA - United States of America
3. EU - European Union
4. FATF - Financial Assets Task Force

Correct Answer : 2

Explanation : Please visit OFAC Website www.treasury.gov/

16 . What among the following statements is not true in context of the Marine Insurance Policies (MIP)?

1. Benefit under MIP could be assigned to third party with concurrence of issuer
 2. MIP is contract of indemnity

3. MIP is transferable instrument under Negotiable Instrument Act

4. MIP could either be issued on per consignment basis or for consolidate amount & period covering all
consignment within given amount & period

Correct Answer : 3

Explanation : Please refer definition in the Section 13 of Negotiable Instrument Act 1881

17 . Under the FTP 2015-20, the date of shipment (DoS) is reckoned in terms of Para 9.11 of Handbook of Procedure.
Which of the following is not true in context of the policy

1. DoS in case of Sea Shipment – date of issuance of Bill of Lading

2. DoS in case of shipment by Air – Date of relevant Airway Bill
3. DoS in case of landlocked Country – Date of dispatch of goods by rail, road or other recognised mode of
transport to consignee
4. DoS in case of Post Parcel – Date stamped by office of dispatch on the packet or Dispatch Note

Correct Answer : 1

Explanation : Please refer Para 9.11 of Handbook of Procedure FTP 2015-20

18 . In context to regulation applicable to international trade of goods (Export or Import) in India, IEC stands for .........?

1. International Exchange of Currency

2. Importer Exporter Customs number issued by Customs Department
3. It is Indian Economic Classification Code issued by Export Inspection Agency of India
4. It is Importer Exporter Code issued by Director General of Foreign Trade

Correct Answer : 4

Explanation : Please refer Para 1.11 and 2.05 of FTP 2015-20

19 . The DGFT vide Trade Notice No. 09 dated 12.06.2017 informed that with onset of GST, PAN Number of entity will
be used for the purpose of IEC. Does the requirement of registration and obtaining of IEC Number from DGFT still
hold good with change of guidelines?

1. Yes, DGFT shall continue with issuance of IEC Number and that number will be same as PAN Number of the
entity
2. No, new exporter/importer can use the PAN Number without approaching DGFT for obtaining IEC Number
3. Exporter/Importer can use PAN number as IEC number and inform DGFT subsequently.
4. Banks can allow customer to use PAN number in lieu of IEC and report to DGFT.

Correct Answer : 1

Explanation : Please refer the Trade Notice No. 09 dated 12.06.2017 issued by the Joint Director of Foreign
Trade, DGFT, Ministry of Commerce, New Delhi

20 . SWIFT Message Types, Message Fields, Field Specifications are standardised and convey definite meaning.
 Message type x95 Series (Like MT195, MT795 or MT995) are used for raising queries. Which MT message series is
used for replying MTx95 message?
1. MT x99 Messages (Like MT199, MT799 or MT999)
2. There is no MT Series for Answer messages
3. MT999 for all series query messages
4. MTx96 Messages (Like MT196, MT796 or MT996)

Correct Answer : 4

Explanation : Please refer SWIFT User handbook. Limited information is available on www.swift.com

21 . Which of the following is a financial document? (A) Invoice, (B) Bill of Exchange, (C) Airway Bill and (D) Promissory
Note

1. B and D
2. B only
3. A only
4. C only

Correct Answer : 1

Explanation : Please refer Article 2(b) of URC 522

22 . What does FATF stands for and what role this organisation plays?

1. Financial Assets Trust Forum, provides rating to financial assets on sale

2. Financial Assets Trust of America, they monitor Anti Money Laundering Activities all over the world
3. Financial Action Task Force, recommend measures for prevention of money laundering, monitor progress made
in jurisdiction across the globe and classified countries on certain parameters
4. Financial Action Task Force, they investigate financial crimes in coordination of various jurisdictions across the
globe and classified countries on degree of global cooperation

Correct Answer : 3

Explanation : Please visit website www.fatf-gafi.org

23 . The DGFT issues License at the request of business entities. Which statement is true in context of this statement?

1. License is only issued for Export by DGFT as per FTP

2. License is only issued for import by DGFT as per FTP
3. License is issued for both export and import by DGFT as per FTP
4. License is issued by Commissioner of Customs for export or import as per FTP

Correct Answer : 3

Explanation : Please refer FTP 2015-20

24 . Execution and acceptance of Bill of Exchange is subject to levy of stamp duty under Indian Stamp Act 1899. Why
does A D Bank not insist for stamp duty while handling or negotiating Bill of Exchange drawn by exporter in
 relation to an export transaction?

1. Since the Bill of Exchange is accepted at overseas place by non-resident buyer

2. Since the Bill of Exchange is drawn in Foreign Currency
3. Since Bill of Exchange drawn by exporter in relation to an export transaction is exempted
4. Since the Bill of Exchange drawn order the drawee to pay the A D Bank

Correct Answer : 3

Explanation : Please refer Government of India, Ministry of Finance Notification SO No. 804(E) Dated 08 July
2014

25 . An AD Bank receives remittance from Non-resident person to be placed as security deposit with Indian company
(Beneficiary) under requirement of Companies Act 2013 for election of Board of Directors. What action shall AD
Bank take?

1. Bank may credit the amount to beneficiary account

2. Bank should insist for permission of Registrar of Companies
3. Bank should refer the matter to RBI
4. Bank should return funds back as none other than the A D Bank can accept deposit from non-resident person

Correct Answer : 1

Explanation : Please refer RBI AP(Dir) Circular No. 59 dated April 13, 2016. Also refer FEMA Regulation
5(R)/2016-RB dated April 1, 2016

26 . Which of the following countries is not a member of European Union?

1. Switzerland
2. France
3. Germany
4. Italy

Correct Answer : 1

Explanation : Please visit European Union webpage (https://europa.eu/european-union/about-

eu/money/euro_en)

27 . In general, what do you understand from R-return reporting by AD Bank to RBI in context to foreign exchange?

1. Reporting of export bill returned unpaid

2. Reporting of Remittances Returned
3. Reporting of each entry in Nostro or Vostro representing funds received in or sent out, including transfer from
one bank to another bank
4. It is reporting of only all merchant transactions where bank either sale or purchase foreign currency

Correct Answer : 3

Explanation : Please refer direction resting with AP (Dir Series) Circular No. 77 dated March 13, 2004
28 . What is Free Trade Warehouse Zone (FTWZ)?

1. It is second name of customs bonded warehouse

2. It is warehouse provided to overseas business coming to India for exhibition
3. It is a special category of SEZ, focussed on trading and warehousing
4. It is warehouse of exporter outside Indian territory

Correct Answer : 3

Explanation : Please refer definition under Section 2(n) of SEZ Act 2005 and SEZ Rule 18(5)

29 . What is the criterion for granting Status Holder Certificate under Foreign Trade Policy?

1. Total export turnover calculated on FOB Basis

2. Net foreign currency earning i.e. export earning less import expenses
3. Total export turnover calculated on CIF Basis
4. Incremental export turnover

Correct Answer : 1

Explanation : Please refer DGFT Notification No.04 dated 29 April 2016

30 . Goods imported in to India can only be unloaded at customs notified area, that is ............................... and delivery
can be taken by filing of Bill of Entry?

1. Sea Port and Airport

2. Inland Container Depot
3. Land Customs Stations
4. All of these

Correct Answer : 4

Explanation : Please refer Para 7, Chapter 8 of FEDAI Book No.6

31 . Benchmark Interest Rate MIBOR as declared by Financial Benchmark India Limited, stands for.......?

1. Mumbai Interbank Overnight Rate

2. Mumbai Interbank Outright Rate
3. Mumbai Interest Overdue Rate
4. Mumbai Interbank Offer Rate

Correct Answer : 2

Explanation : Please refer webpage www.fbil.org.in home page option TERM MIBOR

32 . Which country is member of European Union but not adopted Euro as their currency

1. Spain
 2. Belgium
3. Netherland

4. Denmark

Correct Answer : 4

Explanation : Please refer webpage https://europa.eu/european-union/about-eu_en

33 . Which one of the following action of bank is not influenced by FEDAI Guidelines or instructions?

1. Issuing of eBRC
2. Issuing of eFIRC
3. Display of Fx. Card Rate for public notice
4. None of these

Correct Answer : 1

Explanation : eBRC is issued as per Foreign Trade Policy and instructions of DGFT. Please refer FAQ issued on
eBRC by DGFT and available at www.dgft.gov.in.

34 . The Banking Ombudsman receives a complaint from person resident outside India against an AD Bank on delay
in credit. Can the complaint be taken on board for redressal of grievance under the Ombudsman Scheme?

1. No, complaint related to foreign exchange is dealt only by FEDAI

2. No, the Banking Ombudsman Scheme is available only for residents
3. Yes, the ombudsman will dispose of complaint on merits
4. No, only NRI and PIO out of non-resident person can lodge complaint under the scheme

Correct Answer : 3

Explanation : Please refer the scheme available on following link

https://rbidocs.rbi.org.in/rdocs/Content/PDFs/BOS2006_2302017.pdf

35 . What is currency cut off time in transaction banking?

1. Time for receiving transaction request from customer for respective currency at branch
2. Time prescribed by RBI for banks to deal with RBI on respective currency
3. Time line set with overseas correspondent bank for transacting same value date business through Nostro
Account
4. Cut off time prescribed in FEDAI Rules for accepting transaction request from customer in respective currency

Correct Answer : 3

Explanation : The cut off time are set by overseas corresspondent banks in line with the time lines applicable
for clearing settlement in respective local foreign market and turn around time required for processing at
their end

36 . Which one of the following bank is not an Authorised Person under Foreign Exchange Management Act?
 1. EXIM Bank
2. ECGC
3. Thomas Cook India Limited

4. DBS Bank Ltd

Correct Answer : 2

Explanation : Please refer list available of RBI Website (https://rbi.org.in/Scripts/franchisees_List.aspx)

37 . Whose permission is required to receive grant or donation from abroad if remittance is made in Indian Rupee by
the overseas remitter?

1. No permission is required
2. Permission from Ministry of Home Affairs, Government of India
3. Reserve Bank of India
4. As per the satisfaction of A D Bank

Correct Answer : 2

Explanation : Please refer Foreign Contribution Regulation Act 2010 and FCRA Rules

38 . How much foreign currency notes can an individual person in India hold under the FEMA?

1. Nil
2. No limit
3. Amount equal to USD 2,000
4. Amount equal to Rs. 10,000

Correct Answer : 3

Explanation : Please refer A.P. (DIR Series) Circular No.47/2015-16 [(1)/11(R)] dated February 04, 2016. Please
also refer Para 3.1.4 in Master Direction FED Master Direction No. 8/2015-16 dated January 01, 2016

39 . What is FEDAI Fx Code of Conduct 2017 and purpose of this code?

1. This is the Code of conduct for export credit and purpose is to improve transparencyin pricing for customers
2. This is the Code of conduct for Fx Market for customers and purpose is only to rationalise exchange margin
charged to client by banks
3. This is the Code of conduct of Bank to achieve better service standards by A D Branches
4. This is Code of conduct for Wholesale Fx Market and purpose is to promote robust, fair, liquid open and
appropriately transparent market

Correct Answer : 4

Explanation : Please refer FEDAI Fx Code of Conduct 2017 available on our website, which consist Fx Global
Code i.e. available at https://www.globalfxc.org

40 . Which one of following is not permitted to a Non-resident Indian?

1. Place deposit with Indian Company

 2. Purchase immoveable (non-agricultural) property from domestic resources
3. Remit funds out of India under LRS

4. Purchase equity shares in an Indian company promoted by non-resident

Correct Answer : 3

Explanation : Please refer FED Master Direction No. 7/2015-16 dated January 1,2016

41 . The RBI warrants that Fx Contract could only be booked for customers who have either obtained or applied for
LEI Number. Where from the LEI Number is to be obtained?

1. Only from an entity accredited by Global Legal Entity Identifier Foundation (GLEIF)
2. Only from FEDAI
3. Only from CCIL
4. Only from Legal Entity Identifier India Limited

Correct Answer : 1

Explanation : Please peruse information available over the website https://www.gleif.org/en

42 . What is FIEO?

1. Foreign Investigation and Examination Office, an agency of Government of United States of America
2. Free India Export Organisation, an export promotion wing of Ministry of Finance
3. Federation of Indian Export Organisation, an apex export promotion council in India
4. Federation of Export-import and Open-market council, an agency of United Nations Organisation

Correct Answer : 3

Explanation : Please visit www.fieo.org

43 . How much Indian Rupee Currency can a resident carry with him while going out of India?

1. No limit
2. Amount equal to LRS
3. Nil
4. Rs. 25,000

Correct Answer : 4

Explanation : Please refer regulation No. 3 in RBI Notification FEMA.6(R)/RB-2015 dated 29 December 2015

44 . What is meaning of contravention and compounding in context of FEMA? (A) Contravention is a breach of the
provisions or rules of FEMA (B)Contravention is a non-compliance of RBI directions (C)Compounding refers to the
process of voluntarily admitting the contravention, pleading guilty and seeking redressal (D) Compounding refers
to contending charges levelled under FEMA

1. A and D
 2. A and C
3. B and C
4. C and D

Correct Answer : 2

Explanation : Please refer RBI FAQ on the subject available over the link
https://www.rbi.org.in/commonman/English/Scripts/FAQs.aspx?Id=835

45 . What do you understand from SEPA?

1. Special Economic Pacific-Asia Agreement for trade: A Regional trade cooperation forum
2. Single Euro Payment Area : A payment settlement and clearing zone
3. Specified European Planning Area: A common market
4. Settlement and Exclusive Payment system of America: Common Counter Party (CCP)

Correct Answer : 2

Explanation : Please refer information available on EU Website on following link

www.ecb.europa.eu/paym/retpaym/paymint/sepa/html/index.en.html

46 . Which of the following statement is true in context of Form 15 CC filed by Authorised Dealer Banks to Income Tax
Department?

1. This form is obtained from Non-resident who do not have PAN Number
2. This is quarterly return of Tax Deducted on source in Non-resident Accounts
3. This is quarterly statement to be furnished by ADs for foreign remittances made for the quarter
4. This form is received from resident if remittance is to be made Non-resident without tax deduction on source

Correct Answer : 3

Explanation : Please refer Govt. of India Notification, MoF, Dept. of Revenue (CBDT) Notification No.G.S.R.
978(E). dated 16th December 2015

47 . Which of the following committee of RBI was not formed to deal with issues related to Foreign Exchange or Export-
import?

1. Sodhani Committee 1994

2. Tarapore Committee 1997
3. G. Padmanabhan Committee 2013
4. Dr. P J Nayak Committee 2014

Correct Answer : 4

Explanation : Please refer RBI site for further details

48 . In context to marine insurance, the policy with risk clause Institute Cargo Clause A; charges ......... and
covers.........as against policy under Clause B?

1. Low premium, Narrow range of risks

 2. Low premium, Wider range of risks
3. High premium, Wider range of risks
4. Low premium, Narrow range of risks

Correct Answer : 3

Explanation : Please refer Chapter 11 Marine Insurance Policy in FEDAI Book Number 5. You also please
information available on website of insurance companies

49 . For registration under Foreign Contribution Regulation Act (FCRA) 2010, the pre-emptive requirement is to have
account with.........................?

1. Any scheduled bank

2. Any bank integrated with PFMS system
3. Any Nationalised bank
4. Any foreign bank

Correct Answer : 2

Explanation : Please refer FAQ on following links https://fcraonline.nic.in/home/faq.aspx and

https://fcraonline.nic.in/fc_bank_list.aspx

50 . Which type of Bill of Lading reveals that the Cargo received is put on board a barge to be carried and placed on
parent vessel anchored at short distance from Jetty?

1. Straight Bill of Lading

2. Lash Bill of Lading
3. Through Bill of Lading
4. Switch Bill of Lading

Correct Answer : 2

Explanation : please refer FEDAI Book No. 4, Chapter 4: Para 4.7.1(i)

51 . A person visiting Nepal or Bhutan has general permission to take currency notes in denomination of ...........along
with him?

1. Rs.500 and above

2. Rs. 500 only
3. Upto Rs.100
4. Any denomination

Correct Answer : 3

Explanation : Please refer A.P. (DIR Series) Circular No. 45/2015-16 [(1)/6(R)] dated February 04, 2016

52 . Which one of the following service to exporter or importer, results in utilisation of credit facility in books of the
bank?
 1. Co-acceptance of the import bill received on collection basis
2. Issuing delivery order for Airway Bill on acceptance of the draft,received along with complied documents under
own LC, by the importer
3. Confirming the KYC Credential of the importer to overseas seller through SWIFT Message without any
commitment on part of bank

4. Endorsing the draft received along with export collection documents, instructing the Drawee to pay value to
overseas collecting bank

Correct Answer : 1

Explanation : Please refer Para 2.6 of RBI Master Circular on Guarantee and Co-acceptance DBR. No. Dir.
BC.11/13.03.00/2015-16 dated July 1, 2015

53 . Which one of the followingactions is must before two banks can exchange authenticated SWIFT Message?

1. Both should be members of Society of Worldwide Interbank Financial Telecommunication

2. Exchange RMA Keys with each other
3. Use one of the standardised message formatsfrom categories of authorised messages
4. All these three are necessary requirements

Correct Answer : 4

Explanation : Please refer official website www.swift.com, particular type of message and following link
https://www.swift.com/insights/news/rma-and-rma-plus_managing-correspondent-connections

54 . Under Prevention of Money Laundering Act 2002, Banks in India are required to report and furnish details of all
suspicious transaction to .....?_

1. Reserve Bank of India

2. Financial Intelligence Unit under Ministry of Finance, GoI
3. Directorate of Economic Offence
4. Enforcement Directorate of India

Correct Answer : 2

Explanation : Please visit the website www.fiuindia.gov.in

55 . What is money laundering and where is it defined in legal terms in India?

1. Exchanging of soiled currency note with new note, RBI Act 1934
2. Remitting funds in or out of India through other than banking channel, PML Act 2002
3. Directly or indirectly, indulging or knowingly assist or being a party in any process or activity connected with
proceeds of crime including its concealment, possession, acquisition or use and projecting or claiming it as
untainted property
4. Remitting funds in or out of India from or to countries which are not complied on FATF Standards, FATF

Correct Answer : 3

Explanation : Please refer FAQ available on the website Financial Intelligence Unit of India www.fiuindia.gov.in
56 . As provided in ......., banking company in India may engage in the business of buying and selling of foreign
exchange including foreign bank notes?

1. Banking Regulation Act 1949

2. FEMA 1999
3. Indian Companies Act 2013
4. RBI Act 1934

Correct Answer : 1

Explanation : Please refer section 6 of BR Act 1949

57 . The SWIFT Message is considered complete and delivered to destination server of recipient on the basis
of...........copy of message?

1. ACK
2. NACK
3. HACK
4. BACK

Correct Answer : 1

Explanation : Please refer SWIFT User Handbook or Manual in your bank

58 . Which one of the following is not an accepted mode of payment for acquiring immoveable property in India by
NRI?

1. Inward remittance through Nostro Account

2. Inward remittance through Vostro Account
3. Remittance by debiting their NRE or FCNR Account
4. Payment by traveller’s cheque or foreign currency notes

Correct Answer : 4

Explanation : Please refer question no. 2 in RBI FAQ on Purchase of immovable property in India by Non-
Resident Individuals

59 . Where will you find answer for the question that within how many days the resident person is required to
surrender foreign exchange in India under FEMA?

1. Prevention of Money Laundering Rules

2. Maximum period allowed for realisation of export proceeds under the FTP
3. Foreign Exchange Current Account Transaction Rules 2000
4. FEMA 9 (R) Notification on Foreign Exchange Management (Realisation, repatriation and surrender of foreign
exchange)

Correct Answer : 4

Explanation : Please refer AP (Dir Series) Circular No. 46 dated February 4, 2016
60 . Which of the following institution does the work of collection, compilation and dissemination of India’s Trade
Statistics and Commercial Information, a source of guidance and direction for export & import trade?

1. Indian Institute of Foreign Trade (IIFT)

2. Director General of Foreign Trade (DGFT)

3. Director General of Commercial Intelligence & Statistics (DGCI&S)
4. Federation of Indian Export Organisation (FIEO)

Correct Answer : 3

Explanation : Please refer Para 1.36 of Foreign Trade Policy 2015-20

61 . Which one of the following is not an incorrect statement in context of introduction of GST?

1. Central Board of Excise and Customs is now known as Central Board of GST
2. Central Board of Direct Taxes is now known as Central Board of Income Tax
3. Central Board of Excise and Customs is now known as Central Board of Indirect Taxes and Customs
4. Commissioner of Sale Tax Office is now known as Board of GST

Correct Answer : 3

Explanation : Please visit the website http://www.cbic.gov.in/

62 . A student who went abroad for studiesis sanctioned a study loan by Foreign Bank on the condition that he has to
provide a Guarantee from his Banker in India. The student requested for such guarantee, can AD bank in India
issue such a guarantee?

1. Bank can’t issue such a guarantee under FEMA

2. Bank could issue guarantee only on approval of RBI
3. Bank should offer him Education Loan in Foreign Currency
4. Bank can issue guarantee as requested by the student

Correct Answer : 2

Explanation : Please refer clarification offered by RBI in Conference of the Authorised Dealers on February 12,
2016 under Q.124 and RBI Master Circular DBOD.No.Dir.BC.17/13.03.00/2014-15 dated July 1, 2014 on Bank
Guarantee and Co-acceptance

63 . An Indian Company requests bank for Bid Bond Guarantee in foreign currency favouring an entity in Nepal, should
A D Bank oblige the company?

1. Bank Guarantee favouring foreign entity is not permitted without permission of RBI under FEMA
2. Bank should issue guarantee if it is under International Competitive Bidding and specifically permitted by Nepal
Rashtra Bank
3. Bid Bond Guarantee to Nepal can be issued only in Indian Rupee
4. Bank can issue such guarantee under general permission under FEMA

Correct Answer : 2
 Explanation : Please refer clarification offered by RBI in Conference of the Authorised Dealers on February 12,
2016 under Q.54 and RBI Master Circular DBOD.No.Dir.BC.17/13.03.00/2014-15 dated July 1, 2014 on Bank
Guarantee and Co-acceptance

64 . SWIFT MT 710 format for advising Letter of Credit to exporter by his bank, is used for ...?

1. Revocable letter of credit

2. Pre intimation message before receipt of letter of credit
3. Unauthenticated SWIFT Message advising Letter of Credit
4. Authenticated letter of credit received by the advising bank from LC opening bank through an intermediary
bank in between

Correct Answer : 4

Explanation : Please refer scope of MT710 in SWIFT User Handbook in your bank or visit /www.swift.com

65 . Which one of the following transactions is not to be reported in R Return?

1. Receipt of funds in Nostro Account for credit to FCNR Deposit Account

2. Receipt in Nostro Account on cancelation of import order for which advance payment was made last month
3. Conversion of balance in EEFC account in to Rupee as on last day of following month in which credit was
accrued
4. Remittance by company from their EEFC Account to their overseas branch office for running expenses

Correct Answer : 3

Explanation : All credits and debits to Mirror (of NOSTRO) account and to VOSTRO account. Please refer RBI
Guidelines https://www.rbi.org.in/scripts/ECMUserView.aspx?Id=55

66 . A D Bank can convert a resident Saving Bank Account of a student into NRO account .........on the basis of...........?

1. In advance, Admission letter received from Foreign University

2. In advance, Copy of Visa confirming departure within next six months
3. Any time, Declaration from the student
4. Only after student leaves India for studies abroad, A document to the satisfaction of the bank

Correct Answer : 4

Explanation : Please refer Para 6 Part II in FED Master Direction No. 14/2015-16 dated January 1, 2016

67 . Extending short term foreign currency loan shall not alter which one of the following existing position of the bank?

1. Assets and Liability

2. Loan sanctioned linked with MCLR
3. Net Average Advances of the Bank
4. Aggregate Gap Position in Foreign Currency

Correct Answer : 2
 Explanation : Please refer RBI Master Direction DBR.Dir.No.85/13.03.00/2015-16 dated March 03, 2016. The
MCLR is applicable to loan in Rupee. Please refer Chapter - V for Interest rates on advances in foreign
currency

68 . Arrange in the order of oldest to latest on the basis of their date of enactment – (A) Banking Regulation Act, (B)
Reserve Bank of India Act, (C) Negotiable Instrument Act and (D) Securities Contract (Regulation) Act

1. CBAD
2. ABCD
3. DCBA
4. DBCA

Correct Answer : 1

Explanation : The years of enactment are as follows; Banking Regulation Act 1949, Reserve Bank of India Act
1934, Negotiable Instrument Act 1881 and Securities Contract (Regulation) Act 1956

69 . The requirement of Kimberly Process Certification in context of diamond business is applicable to .........?

1. Only export
2. Only import
3. Neither export nor import
4. Both, export and import

Correct Answer : 4

Explanation : Please refer implementation of Kimberley Process Certification Scheme (KPCS) on Conflict
Diamonds advised by RBI on February 3, 2003 and details as available in Master Direction for export or import
of Goods and Services

70 . Your bank’s interest rate for Rupee packing credit and Agriculture finance under priority sector is fixed 9% and 7%
respectively. What would be effective interest rate on Rupee packing credit for an exporter eligible for interest
equalisation benefit at 3%?

1. 9%, you need not pass benefit of interest equalisation as your rate is quite competitive
2. 6%, after allowing benefit under interest equalisation
3. 7% as banks are not allow to lend below the interest rate applicable to agriculture finance under priority sector
4. Can’t say on the basis of information available

Correct Answer : 2

Explanation : The Interest Equalisation Scheme on export Credit stipulate upfront benefit without linking the
benefit with interest rate on agriculture finance. Please refer RBI CirDBR.Dir.BC.No.62/04.02.001/2015-16
dated Dec 4, 2015

71 . Indian exporters are either exempted from paying local taxes or reimbursed input tax under the concept,
..............?

1. Exporters are not expected to be registered under local tax law.

2. We export goods not taxes
 3. India has double taxation treaties with all countries
4. The overseas buyer cannot claim refund from Tax Authorities in India

Correct Answer : 2

Explanation : Please refer FEDAI Book No.6 Para B (Page No. 55 in current edition)

72 . As per FTP 2015-20 buyer (importer in India or overseas buyer in case of exports out of India) can represent
against supplier for poor quality of goods to the following body?

1. Export Inspection Council (EIC)

2. Federation of Indian Exports’ Organisations (FIEO)
3. Bureau of Indian Standards (BIS)
4. Committee on Quality Complaints and Trade Disputes (CQCTD)

Correct Answer : 4

Explanation : Please refer Para 8.04(c) of FTP 2015-20

73 . An existing customer of Bank requests for credit facilities to import second hand laptops, to be sold in India. Profit
margin makes good economic sense and the bank has adequate credit comfort on the applicant. What should be
the Branch’s normal course of action?

1. Recommend the proposal for fresh limits

2. Turn down the request under FEMA
3. Obtain prior RBI permission
4. Ask for import authorisation under FEMA

Correct Answer : 4

Explanation : Please refer Para 2.33 of FTP 2015-20, second hand Personal computers/ laptops including their
refurbished/ re-conditioned spares are listed as restricted items

74 . Essential feature of the Deemed export are; (a) Supply of goods to EOU / STP / EHTP / BTP (b) Funds are realised in
Foreign Currency (c) Goods supplied not dispatched to cross border destination

1. Only (b)
2. (a) and (b)
3. (b) and (c)
4. (a) and (c)

Correct Answer : 4

Explanation : Please refer Chapter 7 of Foreign Trade Policy 2015-20

75 . The NTP as determined under FEDAI Rule 2.3 is critical factor to determine (a) Due Date (b) Date of crystallisation
of export bill (c) eBRC Date (d) Interest Rate if export credit is availed

1. Only (a)
 2. (a) and (b)
3. (c) and (d)
4. (a), (b) and (d)

Correct Answer : 4

Explanation : Please see the FEDAI Rule 2.3

76 . Export collection bill for Euro 3,200/- is realised on 14 December 2018 (Friday). Next day (Saturday) the exporter
requested the bank to credit the proceeds to its Euro EEFC Account maintained with same bank. Could the bank
act upon the request of the exporter?

1. No, Saturday is non-working day for Fx transactions

2. Yes, provided amount is within the internal limit set for card rate transaction
3. Yes, all trade transaction not involving exchange conversion can be processed on working Saturday
4. No, Saturday is not a working day as per FEDAI rules

Correct Answer : 3

Explanation : Please refer FEDAI Rule No. 1.3, Saturday is not a working day only for Fx conversion, not for
trade transaction processing

77 . Govt. of India has amended the Interest Equalisation Scheme on rupee export credit w.e.f. 02 November 2018 and
......... the rate from ............ for ….. Manufacturer exporters? THIS QUESTION IS CONTRIBUTED BY S. MURTY (BBK
INDIA)

1. Increased, 3% to 5% , MSME
2. Decreased, 5% to 3%, MSME (to bring it at Par with all other exports)
3. Increased, 3% to 5%, All
4. Increased, 3% to 5%,MSME exporting specified eligible products

Correct Answer : 1

Explanation : Please refer RBI circular DBR.Dir.BC.No.09/04.02.001/2018-19dated 29 November 2018

78 . Import License when issued is generally for _______ of Merchandise.

1. CIF Value
2. C&F Value
3. FOB Value
4. CIF & I Value

Correct Answer : 1

Explanation : Please refer FTP 2015-20

79 . Interest equalisation scheme on pre and post shipment Rupee export credit is not available to –

1. Exports made by MSME manufacturers

2. Merchant Exporters
 3. Service Exporters
4. Exports under specified tariff lines as announced by DGFT

Correct Answer : 3

Explanation : Refer RBI/2018-19/107 DBR.Dir.BC.No.22/04.02.001/2018-19 dated Jan.11’2019

80 . Which one of the following is not considered as export in context to sale or purchase by an SEZ Unit?

1. Sale to another SEZ Unit

2. Sale from SEZ to DTA Unit
3. Sale from DTA to SEZ Unit
4. Sale from SEZ to cross border overseas buyer

Correct Answer : 2

Explanation : Please refer definitions under section 2 of SEZ Act 2005

81 . Import License when issued is generally for _______ of Merchandise.

1. CIF Value
2. C&F Value
3. FOB Value
4. CIF & I Value

Correct Answer : 1

Explanation : Please refer FTP 2015-20

82 . Interest equalisation scheme on pre and post shipment Rupee export credit is not available to –

1. Exports made by MSME manufacturers

2. Merchant Exporters
3. Service Exporters
4. Exports under specified tariff lines as announced by DGFT

Correct Answer : 3

Explanation : Refer RBI/2018-19/107 DBR.Dir.BC.No.22/04.02.001/2018-19 dated Jan.11’2019

83 . AD Banks are allowed to remit against import to person other than the overseas supplier of the goods, provided
following conditions are satisfied.

1. Importer should furnish documentary evidence in support of third-party payment

2. AD bank should be satisfied with the bonafides of the transactions including compliance of FATF
3. BoEbesides the name of the shipper should also mention that the related payment has to be made to the
(named) third party
4. All of these
 Correct Answer : 4

Explanation : Please refer para B.7 FED Master Direction No. 17/2016-17 dated January 1, 2016

84 . Under the extant RBI directives, the importer must remit full payment within......months from the date of
shipment, except in cases where amounts are withheld towards guarantee of performance, etc.

1. 3 Months
2. 6 Months
3. 9 Months
4. 12 Months

Correct Answer : 2

Explanation : Please refer para B.5 FED Master Direction No. 17/2016-17 dated January 1, 2016

85 . As per the FTP 2015-20, Service Provider means a person providing...........?(i) Supply of a ‘service’ from India to any
other country(ii) Supply of a ‘service’ from India to service consumer(s)ofany other country in India; (iii)Supply of a
‘service’ from India through commercialpresence in any other country. (iv)Supply of a ‘service’ from India through
the presence ofnatural persons in any other country

1. (i), (ii) and (iii)

2. (i), (iii) and (iv)
3. (ii), (iii) and (iv)
4. All (i), (ii), (iii) and (iv)

Correct Answer : 4

Explanation : Please refer Para9.51 of FTP 2015-20 latest updated in December 2017

86 . Can AD bank allow reduction of Export Bill Value in excess to 25 percentage of total invoice value?

1. Yes, subject to certain conditions

2. No
3. Yes, with RBI permission
4. Yes, only for exports where no bank finance is availed

Correct Answer : 1

Explanation : Please refer para C.17 in RBI FED Master Direction No. 16/2015-16 dated January 1, 2016

87 . Bank while remitting against import collection bill, invoice drawn at payment term 180 days for value of
merchandise USD 76000 plus interest USD 6450; should take care of.......provision?

1. The interest amount does not exceed the prescribed rate of interest for usance period
2. The IDPMS Entry is received in the system for full value of merchandise
3. Compliance of Tax rules e.g. deduction of withholding tax on interest amount
4. All of these
 Correct Answer : 4

Explanation : Please refer the FED Master Direction No. 17/2016-17 dated January 1, 2016 and tax rules which
treat usance interest subject to withholding tax

88 . SOFTEX form is used for......?

1. Export of all computers related equipment from India

2. Import of Software in Physical form from India
3. Export of Software in non-physical form from India
4. Import of all computers related equipment into India

Correct Answer : 3

Explanation : Refer RBI FED Master Direction No. 16/2015-16 Master Direction – Export of Goods and Services
-PART – B

89 . Which one of the following body is considered most appropriate to check market practice where in bank’s view
the amount of commission or discount or period of credit offered etc. in export transaction is not in line with
general practices of the market?

1. Director General of Foreign Trade

2. Export Inspection Council of India
3. FEDAI
4. Export Promotion Council of respective commodity or services

Correct Answer : 4

Explanation : The export promotion councils are representative bodies of exporters engaged in particular
commodity or services and they function under aegis of Ministry of Commerce

90 . Export to countries other than ACU or Nepal and Bhutan, where invoice is raised in Indian Rupee can be realised
in......? [Question contributed by Dr. Sharad Khandelawal, Bank of Baroda]

1. Only in Indian Rupee

2. Only in any foreign currency
3. Only in any freely convertible currency or in INR through a freely convertible Vostro account
4. Only in any freely convertible currency

Correct Answer : 3

Explanation : Please refer Part A Para A.1(v) in the FED Master Direction No. 16/2015-16 dated January 1, 2016

91 . Merchanting Trade is one where the exporter.......?

1. Import goods in to India and to export again

2. Buys goods from a foreign country to as such sell in another foreign country, without touching Indian Shores,
except for transit journey
3. Both of the above two option
4. None of above
 Correct Answer : 2

Explanation : Please refer Para C.14 in FED Master Direction No. 17/2016-17 dated January 1, 2016

92 . The trade credit against import in to India can be raised in..........?

1. Only prescribed foreign currencies

2. Any of freely convertible currency
3. Only Indian Rupee
4. Either any of freely convertible currency or Indian Rupee

Correct Answer : 4

Explanation : Please refer RBI's A.P. (DIR Series) Circular No. 23 dated March 13, 2019

93 . AD Bank can’t facilitate suppliers’ credit to Indian importers by extending their commitment to overseas lender in
form of.........?

1. Letter of undertaking or Letter of comfort

2. Co-acceptance with borrower importer
3. Guarantee
4. Letter of Credit

Correct Answer : 1

Explanation : Please refer Para 4.1 of RBI AP (Dir Series) Circular No. 23 dated March 13, 2019 as well Master
Circular DBR. No. Dir. BC.11/13.03.00/2015-16 dated July 1, 2015

94 . Which one of the following methods of international trade settlement speaks about highest degree of mutual trust
between buyer and seller located in different countries?

1. Advance payment by the buyer to seller

2. Open account trade settlement
3. Collection of bills through banking channel
4. Payment through letter of credit

Correct Answer : 2

Explanation : Please refer FEDAI Book No.4, Chapter 1 Method of International Trade Settlement

95 . Under Trade Credit – revised framework advisedby RBI dated March 13, 2019;what is the maximum amount
allowed per import transaction under Automatic route?[Question contributed by Treasury Team, Indian Bank]

1. Up to USD 50 million or equivalent and USD 150 million for oil/gas refining & marketing, airline, shipping
companies
2. Up to INR 50 million or equivalent and INR 150 million for oil/gas refining & marketing, airline, shipping
companies
3. Up to USD 50 million
 4. Up to the amount equal to import consignment received in India

Correct Answer : 1

Explanation : Please refer Point 2 (iii) in Annexure of A.P. (DIR Series) Circular No. 23 dated March 13, 2019

96 . Local university importing Academic Books is required to make the remittance towards payment of books
within........of the date of shipment?

1. 3 months
2. 6 months
3. 9 months, subject to interest below max Cap allowed for Trade Credit
4. No restriction subject to compliance with Interest payment terms as specified by RBI

Correct Answer : 4

Explanation : Please refer Para B 5.3 of FED Master Direction No. 17/2016-17 dated January 01 2016

97 . As per the FEDAI Rules Xth Edition which has come in to force w.e.f. 01 April 2019, AD Bank may ......Notional
Transit Period on merits, case-by-case basis? Please select most appropriate option.

1. Reduce or Increase
2. Reduce or Increase up to max. 90 days
3. Only reduce
4. Only increase

Correct Answer : 2

Explanation : Please refer FEDAI Rule 2.3

98 . A manufacturing company in India wants to raise FC ECB from its Foreign Equity Holder for USD 50 mio, bullet
maturity at 5 years with put/call option at 3 years end. Does it meet the ECB guidelines, give reason?

1. Yes, meets 3 years minimum average maturity period (MAMP) for ECB
2. Yes, meets 5 years MAMP required for ECB from Foreign equity holder
3. No, Put/Call options not allowed in ECB
4. No, MAMP required for ECB from foreign equity holder is 5 years and put/call option shall not be exercisable
before the MAMP

Correct Answer : 4

Explanation : Please refer Point 2.1 (v) in Annexure of A.P. (DIR Series) Circular No. 17 dated January 16, 2019

99 . Benchmark rate in case of Rupee denominated ECB (INR ECB) will be prevailing......?

1. FBIL Term MIBOR rate for corresponding maturity

2. Yield of the GoI securities (GSecs) of corresponding maturity
3. RBI Repo rate plus 450 bp
4. FBIL MIBOR-OIS rate for corresponding maturity
 Correct Answer : 2

Explanation : Please refer Point 1.5 in Annexure of A.P. (DIR Series) Circular No. 17 dated January 16, 2019

100
. What is the decisive factor that entitles exporter to Status Holder?

1. Net earnings of foreign exchange (Export realisation less by import payment in a financial year)
2. Performance in their export credit facility with the bank
3. Number of years since the exporter is engaged in export out of India
4. Export performance majored in FOB Value

Correct Answer : 4

Explanation : Please refer the Para 3.20 and 3.21 in FTP 2015-20

101 A project exporter executing projects in Middle East Asia requires financing for five years. Is he eligible for long
. term advances from Authorised Dealer Bank in India?

1. No, bank can finance such export maximum up to one year

2. No, bank can finance such export maximum up to three year
3. Bank can finance such export on merits of individual case and on the basis of their commercial judgement in
mutual consultation with exporter
4. Bank can finance only after due permission from the EXIM Bank of India

Correct Answer : 3

Explanation : Please refer Para B.4 of PEM advised vide RBI A.P. (DIR Series) Circular No.11 dated July 22, 2014

102 The exporter who has received advance against export shall be under following obligations? a. Export within one
. year from the date of receipt of advance b. The rate of interest, if payable should not exceed LIBOR+100 BPS c.
The exporter should be status holder d. The documents covering the shipment are to be routed through the bank
in which advance payment is received

1. a, b and c
2. a, c and d
3. b, c and d
4. a, b and d

Correct Answer : 4

Explanation : Please refer para C.2 of FED Master Direction No. 16/2015-16 dated January 1, 2016

103 As per the export contract, the overseas buyer is to pay for the goods in USD Currency Notes, post inspection
. before shipment. The exporter requests bank for pre-shipment advance against such export order within
sanctioned terms of their credit limit, can bank release export credit under FEMA?

1. Bank can’t advance since the export payment will be realised in currency notes
 2. The receipt of export payment in hard currency notes is one of the permitted methods, bank can allow both pre
and post shipment advance against this export order
3. The receipt of export payment in hard currency notes is one of the permitted methods, bank can allow only pre
shipment advance against this export order
4. The receipt of export payment in hard currency notes is permitted only with permission of the RBI hence export
credit against this export order is subject to RBI permission

Correct Answer : 3

Explanation : Bank can allow pre-shipment but not post shipment finance as exporter will receive payment
before shipment

104 Importer of Food items need to submit ‘No Objection Certificate’ from .........for Custom Clearance of food items
. imported in to India?

1. Food Corporation of India

2. Food Safety and Standard Authority of India (FSSAI)
3. Director General of Foreign Trade
4. No such certificate is required for import of any food items in India

Correct Answer : 2

Explanation : Please refer Food Safety and Standards (Import) Regulations, 2017 in general and Chapter 10 in
specific file:///C:/Users/owner/Downloads/Compendium_Food_Import_Regulations_26_04_2018%20(1).pdf

105 ROO means ..............and these rules enlist criteria to determine the country of production of goods for purposes
. of international trade?

1. Rules of origin
2. Regulation on open trade
3. Rules of operation
4. None of these

Correct Answer : 1

Explanation : Please refer Harmonized Rules of Origin. For more details please visit following link
http://www.wcoomd.org/en/topics/origin/instrument-and-tools/wto-agreement-on-rules-of-origin.aspx

106
Who is authorised to allow extension of time in the EDPMS for realisation of the export proceeds?
.

1. Customs
2. Exporter
3. Authorised Dealer Bank
4. Reserve Bank of India

Correct Answer : 3

Explanation : Please refer Para C.20 of FED Master Direction No. 16/2015-16 dated Jan 1, 2016
107 Export bill drawn for FOB Value USD 23,000 and declared agency commission USD 230 is realised net of bank
. charges for USD 22,900. The exporter request bank to remit USD 230 on account of agency commission, credit the
balance to his account and issue the eBRC. What would be value of the eBRC?
1. USD 23,000
2. USD 22,900
3. USD 22,770
4. USD 22,670

Correct Answer : 4

Explanation : Please refer the FAQ on eBRC issued by the DGFT, specifically Q.12 and Q.21(A)
http://dgftcom.nic.in/Exim/2000/depbbrchelp/DepbBrcfaq.pdf

108 Can authorised dealer bank provide facility/ finance to their client engaged in Merchanting Trade for remitting
. advance payment to overseas supplier?

1. Yes, AD Bank may provided pre-shipment credit

2. No, AD Bank are not allowed to provide facility/ finance for Merchanting Trade
3. Yes, subject to certain conditions
4. Yes, permitted with prior approval of the RBI

Correct Answer : 3

Explanation : Please refer C.14(2)(g) of FED Master Direction No. 17/2016-17 dated January 1, 2016

109 An importer requests authorised dealer bank for financial assistance to remit advance to overseas supplier for
. importing capital goods machinery in to India. Could bank finance under FEMA if the proposal is otherwise viable?

1. Bank could finance at their commercial judgement

2. Bank can finance import transactions but not for advance payment
3. Bank could finance import only through Trade Credit Route
4. Bank could finance only with prior approval of the RBI

Correct Answer : 1

Explanation : No FEMA Regulation restricts financing only on the ground that goods are to be imported,
provided such import and remittance is permitted under extant regulations

110 Validity period of Export Authorisations for restricted (Non SCOMET) goods from the date of issue by DGFT, shall
. be valid....... unless specified otherwise?

1. For 12 months
2. For 24 months
3. Till end of the financial year in which it was issued
4. With no expiry date

Correct Answer : 2

Explanation : Please refer Public Notice No. 01/2015-20 dated 04 April 2019 available on www.dgft.gov.in
111 The stamp duty on the Bill of Exchange drawn under export or import letter of credit transactions is applied as
. per..................?

1. UCP 600
2. Reserve Bank of India
3. Stamp Duty Act of respective state
4. Indian Stamp Act 1899

Correct Answer : 4

Explanation : Please refer the Act. The exports transactions are exempted from the stamp duty vide Govt.
Order dated 08 July 2004 whereas for the import, the duty is applicable as per the Schedule of Act.

112 An exporter receives inward remittance as advance against services to be rendered to overseas remitter. Can
. bank allow receipt of such advance?

1. Yes, permitted freely. No monitoring required by AD Bank

2. No, receipt of advance against export of services is not permitted
3. Yes, permitted subject to compliance with certain conditions
4. yes, only if the exporter if going to file SOFTEX in due course

Correct Answer : 3

Explanation : Please refer FEDAI Circular No. SPL-09.BC/Export/2019 dated 30th May 2019

113
The maximum usance period allowed in a letter of credit opened for import of precious stone is.......?
.

1. 90 Days from receipt of the goods in India

2. 90 Days from date of shipment
3. 90 Days from date of the drawdown
4. 90 Days

Correct Answer : 2

Explanation : Please refer RBI Circular A.P. (DIR Series) Circular No.83 dated February 20, 2013 and in specific
Para C.12.1FED Master Direction No. 17/2016-17 dated January 1, 2016

114
Can an AD Bank ask for ECGC Cover, while extending export credit to service exporter, to secure their finance?
.

1. No, ECGC only covers risk associated with export of merchandise

2. Yes, ECGC does provide policies covering risk associated with export of services
3. No, the risk related to export of services is not allowed to be covered under IRDA Guidelines
4. Yes, the risk related export of services could be covered under Guidelines of RBI

Correct Answer : 2

Explanation : ECGC provides suitable policies to service exporters. https://www.ecgc.in/services-policy-src/

115 Normal Transit Period allowed for an export collection bill drawn at......... under FEDAI Rules Xth Edition
. is........days?

1. DA basis, 180
2. DP basis, 25
3. DA basis, 270

4. DP basis, 90

Correct Answer : 2

Explanation : Please refer General Rule Number 2.3 of FEDAI Rules NTP may vary in exceptional cases at AD
Bank’s discretion

116
Pre-shipment credit (PCFC) in US Dollar is not permitted for ......?
.

1. Deemed export,unless for specific projects

2. Exports destined to ACU Country
3. Exports invoiced in freely convertible currency other than USD
4. Exports invoiced in Indian Rupee

Correct Answer : 1

Explanation : Please refer RBI Master Circular DBR No.DIR.BC.14/04.02.002/2015-16 dated July 1, 2015 in
general and Para 5.14

117 Export Packing credit disbursed on 01 April 2019 (Shipment up to 30 April 2019) with due date of 21 May 2019
. becomes overdue and was liquidated out of EEFC on 12 June 2019. The interest equalisation benefit shall be
calculated for period......... if eligible for such benefit?

1. From 01 April 2019 to 30 April 2019

2. From 01 April 2019 to 12 June 2019
3. From 01 April 2019 to 21 May 2019
4. From 30 April 2019 to 12 June 2019

Correct Answer : 3

Explanation : Please refer Para 2.A(iii) of RBI Circular DBR.Dir.BC.No.62/04.02.001/2015-16 dated December 4,
2015

118
What is Normal Transit Period for export to countries, under UN Guidelines.
.

1. 25 days
2. 180 days
3. 90 days
4. 120 days

Correct Answer : 4
 Explanation : Pls refer FEDAI Rules 2.3

119
Can bank issue eBRC for Deemed Export?
.

1. No

2. Yes
3. Yes, provided the bill is realised in Foreign Currency
4. Yes, provided specific approval is obtained under FTP 2015-20

Correct Answer : 2

Explanation : Under the extant guidelines of DGFT eBRC is issued in format 22B against deemed export

120 M/s. Roshan Woodmart gets an order from M/s. Export Mart, an export house, to supply furniture items against
. an export order they have got, to be exported under their brand name. Based on the information which one of
the following statements is correct, in terms of extant FEMA Direction?

1. M/s. Roshan Woodmart is eligible for export credit

2. M/s. Roshan Woodmart is eligible only for pre-shipment credit not for post-shipment credit
3. M/s. Roshan Woodmart is eligible to receive payment in foreign currency from M/s Export Mart
4. None of these

Correct Answer : 2

Explanation : Please refer Para 1.2.1 and 1.2.2 in RBI Circular DBR No.DIR.BC.14/04.02.002/2015-16 dated July
1, 2015

121
As per FEMA 1999, Bank can’t advance export credit for the reason that…...?
.

1. Final destination is Iran, country under OFAC sanctions

2. The exporter is in Specific Approval List of ECGC
3. The exporter is in RBI Caution List
4. The exporter has not obtained IE Code

Correct Answer : 3

Explanation : Please refer FEDAI Book No. 5 Chapter 2 (Page No.10 August 2018 Edition), other three reasons
are also valid but under different set of rules, guidelines

122
Which one of the following is scheme of RBI to promote export?
.

1. Merchandise Exports from India Scheme (MEIS)

2. Interest Equalisation Scheme on export credit
3. Export Gold Card Scheme
 4. None of these
Correct Answer : 4

Explanation : Given schemes are announced by Government of India and implemented through RBI

123
Can a SEZ unit purchasing non-capital goods from DTA Unit raise buyer’s credit from overseas lending institution?
.

1. Yes, for period not exceeding 180 Days

2. No, trade credit for such transaction is allowed only for capital goods
3. Yes, provided lender is taking direct credit exposure on the SEZ Unit
4. No, trade credit is not allowed to SEZ Unit for purchase from DTA Unit

Correct Answer : 4

Explanation : Please refer Para 15.1 in FED Master Direction No.5/2018-19 dated March 26, 2019

124
Where is the term ‘Software’ defined in reference to export?
.

1. RBI Notification No. FEMA 23(R)/2015-RB dated January 12, 2016

2. Foreign Trade Policy
3. FEDAI Rules
4. None of these document

Correct Answer : 1

Explanation : Please refer Regulation No.2(viii) of FEMA 23(R)/2015-RB dated January 12, 2016

125 An exporter wants to open a foreign currency account with an overseas bank in country where his major exports
. take place. What would be your advice to such customer?

1. Indian Exporter except the one who are executing long term project can’t open account with an overseas bank
2. Indian Exporter are free to open account with an overseas bank in country of their choice
3. Indian Exporter holding star status under FTP 2015-20 only can open account with an overseas bank
4. Indian Exporter can open account with an overseas bank subject to RBI permission

Correct Answer : 4

Explanation : Please refer Para A.4(ii) in FED Master Direction No. 16/2015-16 dated January 1, 2016

126
Exporters in .....category are eligible for obtaining Gold Card under Exporters’ Gold Card Scheme of.....?
.

1. SME, RBI
2. All, Government of India
3. Star Export House, FIEO
4. Deemed export, Respective State Government
 Correct Answer : 2

Explanation : Please refer para 8.1.3 in Master Circular DBR No.DIR.BC.14/04.02.002/2015-16 dated July 1,
2015

127 An importer request bank to square-off the ORM Entry in IDPMS on the basis of Ex-Bond BoE provided by
. customs, as the imported goods are stored in Customs’ Bonded Warehouse. Can Bank accept the request
pending receipt of Bill of Entry for Home Consumption?

1. ORM entry can’t be marked off against Ex-Bond BoE

2. Bank may close ORM Entry at their discretion
3. Bank can close the entry only on receipt of Bill of Entry for Home Consumption
4. Bank may close ORM Entry subject to compliance of certain conditions

Correct Answer : 4

Explanation : Please refer Para C.7.1 and C.7.2(i) in FED Master Direction No. 17/2015-16 dated January 1, 2016

128 A D Bank receives set of export documents for negotiation under usance LC. Documents were found to be LC
. compliant but AD Bank noticed that no draft or Bill of Exchange was provided. Can bank negotiate such
documents under LC?

1. Yes
2. Yes, if the exporter agree to provide the draft or Bill of Exchange as and when asked for
3. No, in absence of negotiable instrument bank can’t negotiate
4. No, as per UCP 600 the draft or Bill of Exchange is a mandatory document

Correct Answer : 1

Explanation : Pl refer Guidance Note issued by ICC on uses of draft

https://library.iccwbo.org/tfb/ps/Guidance%20Paper%20-
%20The%20Use%20of%20Drafts%20under%20DC.pdf

129 Exporter client submits export documents for collection under URC 522 to be delivered against Acceptance. Bank
. noticed that no draft or Bill of Exchange or other instrument of demand was provided. Should bank handle such
collection, choose most appropriate option?

1. No, draft or Bill of Exchange or instrument of demand is mandatory in URC522

2. Yes, Bank should forward document as per instructions of the exporter
3. Bank should counsel the exporter about risk in forwarding such set without document on which acceptance is
to be obtained
4. Yes, URC is silent on this issue

Correct Answer : 3

Explanation : Please refer to Art. 7 and Art. 8 of URC 522, better the bank explains position to exporter to
avoid dispute in future

130 Which of the following Is a form of financing by AD Bank for imports in to India? a. Buyer’s Credit b. Usance Letter
. of Credit c. Working capital finance in rupee d. Avalisation or co-acceptance of the draft or bill of exchange drawn
by seller on buyer
1. (a), (b) and (d)
2. (a) and (b)
3. Only (a)
4. All (a), (b), (c) and (d)

Correct Answer : 4

Explanation : Bank can provide either fund based and non-fund based credit facility by any of given made of
finance

131
The overdue.......is required to be crystallised as per the.................?
.

1. Export Bill, policy of respective bank

2. Export Bill or import Bill, FEDAI Rules
3. Export Bill, FEDAI Rules
4. Export Bill financed by the bank or Import Financed under LC, Internal policy of respective bank

Correct Answer : 4

Explanation : Please refer FEDAI Rule No. 2 and 3

132 An importer client meeting all other requirements as stipulated in the FEMA, requests AD Bank to make import
. payment against Bill of Entry duly signed by the Customs Authorities for imports into India through an EDI port.
Should bank oblige?

1. Yes, as long FEMA is complied with

2. Yes, subject to AD Bank’s internal policy
3. Yes, provided the bank is able to cross check key information fields from ICEGATE
4. No, information in IDPMS (BoE Master) is only valid evidence for import at EDI Port

Correct Answer : 4

Explanation : Please refer RBI A.P. (DIR Series) Circular No. 27 dated January 12, 2017,

133
The buyer’s credit for Import of raw material is allowed for maximum period up to............?
.

1. End of Operating cycle

2. One year
3. 6 months
4. One year or the operating cycle whichever is less

Correct Answer : 4

Explanation : Please refer Para 14(v) of FED Master Direction No.5/2018-19 dated March 26, 2019, only
exception allowed is for Shipyards and Ship-builders
134 Which method of trade payment indicates high degree of mutual trust between buyer and seller in International
. Trade?

1. Open Account Trade

2. Advance payment
3. Delivery against Payment (DP Bill, Collection through banking channel)
4. Settlement through Letter of Credit

Correct Answer : 1

Explanation : Please refer Chapter 1 METHODS OF INTERNATIONAL TRADE SETTLEMENTS in FEDAI Book No.4

135
As per FEMA, all export out of India shall be denominated in ....................currency?
.

1. Any foreign
2. Indian Rupee
3. Any freely convertible
4. Indian Rupee or any freely convertible

Correct Answer : 4

Explanation : Please refer Para A.1(v) of FED Master Direction No. 16/2015-16 dated January 1, 2016

136 Goods worth how much a person resident in India is free to export as gift in a Licensing Year? (Provided export of
. that item is not prohibited under FTP 2015-20)?

1. USD 25,000
2. Rs. 25,000
3. Rs. 5,00,000
4. Rs.10,00,000

Correct Answer : 3

Explanation : Please refer FEDAI Small Booklet Para B.9 in Facilities to Resident and Non-resident or Para 2.44
in FTP 2015-20. Import Export Code no. is not required in this case.

137 Should AD Bank issue eBRC for export where receivable is set off/netting off against import payment in
. compliance with FEMA?

1. No, eBRC can't be issued in absence of foreign currency cash flow

2. Yes, eBRC can be issued for export receivable amount
3. No, the case needs to be referred to DGFT
4. Yes, bank can issue eBRC

Correct Answer : 4

Explanation : eBRC is issued on closure of EDPMS Entry on account of netting off against Import Liability
or/and realisation of export proceeds
138 AD bank may at exporter's request, subject to its satisfaction and for bonafied reasons, allow extension in period
. of export realization beyond due date for maximum period of....... , at a time.

1. Six months
2. One year
3. Three year
4. The period bank is satisfied, maximum 6 month

Correct Answer : 4

Explanation : Please refer Para C.18 of FED Master Direction No. 16/2015-16 dated January 1, 2016.While
considering extension beyond one year from the date of export, the total outstanding of the exporter does
not exceed USD one million or 10 per cent of the average export realizations during the preceding three
financial years, whichever is higher.

139 The Registration-cum-Membership Certificate issued to exporters by their respective export promotion councils is
. valid for.......?

1. One year
2. Three Years
3. Five Years
4. No such period is prescribed

Correct Answer : 3

Explanation : Please refer FEDAI Book No.6, Chapter 4 [Para 4.1(ii)]

140 An exporter in a line of business for which Ministry of Commerce & Industry has not established an exclusive
. export promotion council; where from such exporters should obtain the Registration-cum-Membership Certificate
(RCMC)?

1. Ministry of Commerce & Industry

2. Federation of Indian Export Organisations
3. Export Inspection Council of India
4. Such exporters need not obtain RCMC to claim benefit from DGFT

Correct Answer : 2

Explanation : Please refer FEDAI Book No.6, Chapter 4 [Para 4.1(ii)]

141 The AD Bank is allowed to credit exporter's account on realisation of a foreign currency export collection bill by
. applying Bill Buy Rate only after .....?

1. Receiving SWIFT MT400, an advice of payment sent by the collecting bank

2. Receiving MT103, a standardised SWIFT payment message
3. The foreign currency amount is credited to the Nostro account of the A D Bank
4. Any one of these given three triggers as per the internal policy of the A D Bank.

Correct Answer : 3
 Explanation : Please refer FEDAI Rule No. 2.5(a)

142
Outward remittance on account of agency commission for export can't exeed …..?
.

1. No specific limt
2. 5 percent of Invoice value
3. 12.5 percent of export realisation

4. Limit as notified by the Customs Department from time to time

Correct Answer : 1

Explanation : Please refer Para D.1 in FED Master Direction No. 16/2015-16 January 1, 2016. Subject to meeting
the requirements as stated in said Master Direction

143
Can bank remit agency commission in cases where exporter did not declare commission in EDF/SOFTEX?
.

1. Yes, subject to certain conditions, for all bonafied cases

2. Yes provided the amount is not exceeding 12.5 percent of realised export proceeds
3. No
4. No, remittance of agency commission is not allowed unless it is declared in EDF/SOFTEX form

Correct Answer : 1

Explanation : Please refer Para D.1 in FED Master Direction No. 16/2015-16 January 1, 2016

144
What is SCOMET Goods?
.

1. These are goods from Special Class of Metals

2. These are goods from Specific Class of Materials, Equipment which require special Transportation
3. Special Chemicals, Oil, Metals, Engineering or Telecommunication Equipment which are of dual-use hence
prohibited under FTP
4. Special Chemicals, Organisms, Materials, Equipment and Technologies which are of dual-use hence either
prohibited or permitted under an Authorisation

Correct Answer : 4

Explanation : Please refer Para 9.49 of FTP 2015-20

145 Is exporter entitled to benefits under Export Interest Equalisation Scheme of the Government of India if export
. order is received in Indian Rupees where sale invoicing is also done in Indian Rupee. Account is otherwise eligible
for the benefit under the scheme?

1. Yes, scheme is indifferent to currency of export order, invoicing

2. No, the export order should be in Foreign Currency
3. No, since invoiced in Rupee there would be no Foreign Currency inflow into the country
 4. No, since the packing credit is obtained in Rupee
Correct Answer : 1

Explanation : Please refer DBR.Dir.BC.No.62/04.02.001/2015-16 dated 04 December 2015, the release of

benefits under the export credit interest equalisation benefits is independent to currency of contract or
realisation

146 Who frames guidelines and is also hosting data on its server, for eBRCs issued by AD Banks against realised export
. bills?

1. Director General of Systems, Customs Department

2. Reserve Bank of India
3. Director General of Foreign Trade
4. Export Promotion Council of respective Trade

Correct Answer : 3

Explanation : Please visit http://dgftebrc.nic.in/ebrcmodule.htm

147
Export of which services are eligible for benefits under Service Export India Scheme under FTP 2015-20?
.

1. All Services
2. Only Software Services
3. Only Service Export eligible for Export Credit by AD Bank
4. Services notified by DGFT

Correct Answer : 4

Explanation : Please refer Para 3.08 of FTP 2015-20 the eligible services are notified vide Appendix 3D

148 Which one of the following method of International Trade entails maximum risk for supplier and is just opposite
. of the advance payment?

1. Documentary Credit
2. Open Account
3. Bill Collection on DA Basis
4. Bill Collection on DP Basis

Correct Answer : 2

Explanation : Please refer FEDAI Book No.4 Chapter 1, Table Comparing Payment Term

149
Terms of the Letter of Credit are determined by whom, which document?
.

1. LC Applicant
2. Commercial Contract between the supplier (Beneficiary) and buyer (Applicant)
3. LC Issuing Bank
 4. All of these

Correct Answer : 4

Explanation : The LC terms are governed by and decided based on all these factors to protect the interest of
all stake holders

150 Is AD Bank permitted to handle export document for goods cleared through Non-EDI Port and the data (entry) is
. yet to be received in the EDPMS System?

1. No, bank must wait till entry is reflected in EDPMS

2. Yes, bank can process on the basis of physical copy of Shipping Bill
3. Bank can process and dispatch export documents provided the exporter is of Star Export House status holder
4. Yes, it is permitted subject to compliance of certain conditions as advised by the RBI

Correct Answer : 4

Explanation : Please refer RBI FED Mail Box Clarification Dated 27 June 2019

151 An outstanding pre-shipment export credit availed for a specific export order can't be liquidated from the
. proceeds of ……..?

1. Post shipment export credit account against any other order

2. Rupee resources accrued on account of realisation of export
3. Advance received against another export order
4. Disbursement of another pre-shipment export credit

Correct Answer : 4

Explanation : Please refer Para 1.1.4 in RBI Master Circular DBR No.DIR.BC.14/04.02.002/2015-16 dated July 1,
2015

152
Can importer raise Buyer’s Credit in Indian Rupee for an import payment invoiced and due in foreign currency?
.

1. No, buyer’s credit can only be raised in currency of invoice of import bill
2. No, buyer’s credit can only be raised in any fully convertible foreign currency and Rupee is not fully convertible
3. Yes, subject to mandatory hedging of the foreign exchange risk
4. Yes, trade credit is permitted in Indian Rupee as well as any freely convertible currency

Correct Answer : 4

Explanation : Please refer Para 14 in FED Master Direction No.5/2018-19 dated March 26, 2019

153 As per para 7.02.B of FTP 2015-20, supply of goods to projects financed by certain multilateral or bilateral
. Agencies/ Funds is considered as Deemed Export. Which are these multilateral or bilateral Agencies/ Funds?

1. All overseas multilateral or bilateral Agencies/ Funds

2. Only the multilateral or bilateral Agencies/ Funds in which India is member are eligible
 3. The name of eligible multilateral or bilateral Agencies/ Funds is notified by Ministry of Commerce
4. The name of eligible multilateral or bilateral Agencies/ Funds is notified by Ministry of Finance

Correct Answer : 4

Explanation : Please refer Para 7.02.B of FTP or may check the list as available in Appendix 7-A and 7-B of FTP
2015-20

154 Subject to certain conditions, AD Banks can allow advance remittance against import of Rough Diamonds without
. insisting for advance payment Bank Guarantee, only to overseas mining company, which has the recommendation
of ......

1. World Gold Council

2. GJEPC
3. Reserve Bank of India
4. Ministry of Commerce

Correct Answer : 2

Explanation : Please refer para C.1.2 in FED Master Direction No. 17/2016-17 dated January 1, 2016

155 Exporters are Caution Listed if any shipping bill remains unrealised for more than.......from ...... unless extension is
. granted by AD Bank/RBI?

1. 2 Years, Shipment Date

2. 1 Year, Shipment Date
3. 2 years, Payment due Date
4. 2 Years, Invoice Date

Correct Answer : 1

Explanation : Please refer para C.28 in FED Master Direction No. 16/2016-17 dated January 1, 2016

156 In the Running Account Packing Credit facility, AD banks should insist for submission of evidence of export order
. within.....?

1. 15 days
2. Time period as advised by the RBI
3. Time period as advised by FEDAI
4. Reasonable Time period, as per internal policy of the bank

Correct Answer : 4

Explanation : The RBI Directives advises to obtain LC /Orders within a reasonable period of time and each
bank is expected to have their policy in place in this regard

157 AD Bank on receipt of LC Opening Request from their customer observed that they are opening such LC for the
. same commodity for same overseas supplier for quite some time. Should the bank refer the FTP for given ITC(HS)
Code, every time?
 1. Not required since the ITC (HS) code is irrelevant information for bank in opening of the import LC
2. Not required if the bank earlier examined the eligibility of given commodity for import in to India
3. Required since the ITC(HS) Code is changed by DGFT annually
4. Required since the eligibility norms of import w.r.t. Commodity as well as ITC (HS) Code may be changed

Correct Answer : 4

Explanation : Change in norms or number is discretion of DGFT. Please refer recent DGFT Notification No. 3
dated 19 November 2019 ITC (HS) Code for various commodity is deleted, split, merged or changed.

158 Exporter requests AD Bank for issuance of eBRC against export of capital goods in deemed export category. Shall
. the Bank issue eBRC on realisation of export proceeds?

1. No, issuance of eBRC in not allowed for export of capital goods

2. No, issuance of eBRC in not allowed for deemed export
3. No, issuance of eBRC is the responsibility of DGFT and not the AD Bank
4. Yes, Bank may issue in apprpriate format

Correct Answer : 4

Explanation : Issuance of eBRC is permitted irrespective of capital or non-capital goods as well as for deemed
export by the AD Bank

159 Exporter is exempted from filing Export Declaration if the goods is transported through one of the following
. logistics?

1. Export through own vehicle

2. Export through inland waterway transport
3. Export through courier or postal services
4. None, requirement of filing export declaration is a mandatory requirement irrespective of mode of transport
unless exempted for specific reasons under FEMA

Correct Answer : 4

Explanation : Please refer RBI Notification No. FEMA 23(R)/2015-RB dated January 12, 2016, in specific the Reg.
No. 3 and 4

160 AD may dispatch or allow exporter to dispatch shipping documents direct to the consignee where...........? Pick the
. incorrect reason.

1. Advance Payment has been received for full value of export shipment
2. An irrevocable LC is received for full value of export shipment
3. Exporter has a good track record and AD Bank is satisfied about arrangements made for realization of export
proceeds
4. Exporter is a Status Holder with good track record and AD Bank is satisfied about arrangements made for
realization of export proceeds

Correct Answer : 2

Explanation : Just an Irrevocable L/C is not adequate. Underlying sale contract, L/C should also provide for
 direct dispatch of documents Refer Para C.10 of FED Master Dorection No. 16/2015/16

161 EUR export bill purchased under ‘Post Shipment Rupee Export Credit’ at the EUR/INR rate of Rs.80.20 is due for
. crystallisation. The EUR/INR TT Sale Rate prevailing on date of crystallisation is Rs.79.90, which rate should bank
apply?

1. Bank shall apply EUR/INR Rs.79.90, exchange gain is to the exporter

2. Bank shall apply EUR/INR Rs.79.90 but hold back exchange gain till realisation of export bill
3. Bank shall apply EUR/INR Rs. 80.20 since the bill purchase rate is higher than prevailing TT Sell Rate. Exporter
with overdue export bill, not entitled to exchange gain
4. Bank should apply the rate as per their own policy

Correct Answer : 1

Explanation : Please refer FEDAI Rule 2.1(b) iii

162 As per FTP 2015-20, Import of gifts for value up to..........is not subject to customs duty where such goods are
. otherwise freely importable under ITC (HS).

1. Rs.1,00,000
2. Rs. 50,000 and gift send by the close relatives only
3. No limit on value, applicable only Lifesaving drugs, medicines or Rakhi
4. Rs. 5,000 for purchase through e commerce portals

Correct Answer : 3

Explanation : Please refer the DGFT Notification No. 35/2015-2020 dated 12 December 2019. Gift of any other
nature can be imported on payment of duty irrespective of value
http://dgft.gov.in/sites/default/files/Notification%20No.%2035%20dated%2012.012.2019%20in%20E.pdf

163
The Ex-bond Bill of Entry is filed by…..when goods is to be……….?
.

1. Exporter, Stored in warehouse until arrival of intended ship at the port of dispatch
2. Importer, warehoused on arrival in to India and duty is to be paid at a later date
3. Exporter, exported under export obligation bond executed by such exporter
4. Importer, imported without paying the customs duty

Correct Answer : 2

Explanation : Please refer the following link

http://accmumbai.gov.in/aircargo/import/import_procedure.html#proc_warehouse

164 What do you understand from term OUT OF CHARGE ORDER in context with export or import clearances /
. procedure?

1. When any item is placed in the freely permissible list from restrictive list for export or import under FTP
2. When a particular item is allowed for loading on the mean of transport by Customs Authority in case of export
3. When goods is allowed for unloading from the mean of transport by Customs Authority in case of import
 4. When imported goods are allowed to move out of the port on completion of customs formalities
Correct Answer : 4

Explanation : Please refer procedure of import or read content available under the heading EDI Assessment
on following link http://accmumbai.gov.in/aircargo/import/import_procedure.html

165 AD I banks, subject to certain conditions, can allow exporters having a minimum of 3 years’ satisfactory track
. record to receive long term export advance up to a maximum tenor of.......to be utilized for execution of long-term
supply contracts for export of goods.

1. Upto 3 years

2. 5 years
3. 10 years
4. No limit

Correct Answer : 3

Explanation : Para C2(2) of FED Master Direction No. 16/2015-16on Export of Goods and Services (Updated as
on January 12, 2018)

166
What do you understand from term LET EXPORT ORDER in context with export or import procedure?
.

1. When DGFT allows export of any goods out of India which is in the restrictive list under FTP
2. When goods is allowed for loading on the mean of transport by Customs Authority in case of export
3. When a export which is subject to levying of customs duty is allowed without collecting the duty against
submission bank guarantee
4. When the ship is allowed to move out of the port on completion of customs formalities

Correct Answer : 2

Explanation : Please refer procedure of export. This order is generated electronically, however in case of
system downtime allowed to be issued manually, http://www.jawaharcustoms.gov.in/pdf/PN-
2017/PN_NO_13.pdf

167
The ECGC does not offer........to exporter?
.

1. Exchange Risk on the Foreign Currency/INR conversion

2. Credit Risk on Buyer
3. War or civil disturbances in Buyer's country.
4. Import restrictions in Buyer's counrty after the date of shipment

Correct Answer : 1

Explanation : For details, please visit www.ecgc.in for more information or refer FEDAI Book 5, chapter 9
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