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Overview of Compliance Functions (available since 09.10.2020)

Remaining Time: 00:23:38
Question 1
Which of the following statements regarding control is/ are true?
A) Banks are required to put in place controls only for some selected risk paramters
B) Controls on selected risk will be uniform for all banks irrespective of size,
voume and complexity of buisiness
C) Controls wiill be in commensurate with risk in a bank and may vary from bank to bank.
D) The level of internal controls required for mitigating risk is indirectly related to the
inherent risk assumed by the bank

Question 2
Compliance breaches do not lead to
A) regulatory sanctions
B) financial loss
C) impairment of integrity
D) None of these

Question 3
Which of the following is not missseling?
A) Non-disclosure of grievance redressal mechanism
B) Consent of Customer not taken.
C) Omission of key information
D) None of these

Question 4
Compliance with PFRDA guidelines is part of
A) Regulatory Compliance
B) Statutory Compliance
C) Other Compliance
D) None of these

Question 5
Compliance Risk Assessment is carried out at
A) Monthly Interval
B) Quarterly Interval
C) Annual Interval
D) As and when RBI directs

Question 6
Which of the following statement on compliance is wrong?
A) Compliance is the commitment stemming from an individual to follow rules,
regulations and various codes of conduct including the voluntary ones every day,
every transaction.
B) Ensuring compliance with regulations, policies and processes is the
responsibility of Compliance Department.
C) Compliance culture is epitomized by collective commitment to nurture and
protect organisation?s reputation and live organisation?s values, every day,
everywhere.
D) The level of internal controls required for mitigating risk is directly related to the
inherent risk assumed by the bank

Question 7
Which is not one of the reasons for focusing on compliance?
A) Unexpected loss arising out of non-adherence to Policies/Controls/ SOPs.
B) Capital Budgeting & Profit Planning
C) Non-adherence to controls set by the bank in handling business activities leads to
substantial loss reflected in provision for loan loss and frauds
D) Regulators are becoming more and more stringent
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Question 8
Which of the following is not part of compliance policy of SBI?
A) Measures to ensure interdependence of compliance function
B) Compliance structure

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C) Compliance philosophy of the bank

D) None of these

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Question 9
Tranche-III report is required to be submitted
A) Quarterly
B) Half yealry
C) Annually
D) Monthly

Question 10
Identification of Beneficial Owner must be ensured
A) After opening of acount but before allowing any debit in the account.
B) At the time of Onboarding of customer.
C) When the credit summations in the account reach the threshold limit.
D) Only for those accounts identified by RBI.

Question 11
Compliance risk management involves three lines of defence. What is the role of 3rd line of defence?
A) Primarily responsible for compliance
B) Monitors Compliance Risk
C) Advises management
D) Provides feedback to management

Question 12
A document entitled "Compliance and Compliance Function in the Banks" is released by
A) FATF
B) BCSBI
C) BCBS
D) RBI

Question 13
What is the periodicity for updation of KYC for Low risk individuals and entities?
A) Every 2 Years
B) Every 8 Years
C) Every 6 months
D) Every 10 Years

Question 14
Which of the following is violation of regulatory norms related to currency chest
A) CCTV Cameras covering all cash areas of branch
B) Not Accepting coins and mutilated notes
C) Guards frisking every one who enters in to chest
D) Rejecting a claim on Mutilated notes after adjudication

Question 15
Which of the following is primarily responsible for compliance?
A) Business Unit/ Operating Unit
B) Top Management
C) Board of Directors
D) All of these

Question 16
FEMA Compliance is part of
A) Regulatory Compliance
B) Statutory Compliance
C) Other Compliance
D) None of these

Question 17
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What is the periodicity for updation of KYC for High risk individuals and entities?
A) Every 2 Years
B) Every 8 Years
C) Every 6 months
D) Every 10 Years

Question 18
Payment of Cheque is governed by
A) Banking Regulation Act
B) Negitiable Instrument Act
C) RBI Act
D) None of these

Question 19
Who is responsible for managing Compliance Risk in the bank

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A) The Board
B) The Top Management
C) Departmental Heads
D) Everyone in the organisation

Question 20
Which of the following statements regarding control is/ are true?
A) Banks are required to put in place controls only for some selected risk paramters
B) Controls on selected risk will be uniform for all banks irrespective of size, voume and complexity
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buisiness
C) Controls wiill be in commensurate with risk in a bank and may vary from bank to bank.
D) The level of internal controls required for mitigating risk is indirectly related to the inherent risk assumed by
the bank

Question 21
Which of the following is/ are compliance philosophy of our SBI
A) Compliance is most effective in a corporate culture that emphasizes standards of honesty and integrity.
B) It concerns everyone in the organisation and should be viewed as an integral part of the business.
C) Both of these
D) None of these

Question 22
Which of the following is true regarding reporting of compliance breaches.
A) All compliance breaches with magnitude of impact of more than Rs.1,00,000 need
to be reported by the Compliance Department to the Group Compliance Officer.
B) All compliance breaches irrespective of the magnitude of the impact, need to be
reported by the Business Units/departments to the Group Compliance Officer.
C) All compliance breaches irrespective of the magnitude of the impact, need to be
reported by the Internal Audit Department to the Audit Committee of the Board.
D) All compliance breaches with magnitude of impact of more than Rs.1,00,000 need
to be reported by the Business Units/departments to the Group Compliance Officer.

Question 23
Which of the following statement regarding Compliance Testing is/ are True? i. While the
compliance to RBI guidelines is the responsibility of the operational departments, the
monitoring of the same is the responsibility of the Compliance Function. ii. While the
compliance to RBI guidelines is the responsibility of the Compliance
Function, the monitoring of the same is the responsibility of the Audit Function. iii.
Compliance Testing is aimed in identifying the weaknesses / deficiencies in controls, from
compliance perspective. iv. The objective of Compliance Testing is to find out the persons
responsible for non compliance and false compliance
A) Only i & iv
B) Only ii
C) Only i & iii
D) Only iii

Question 24
Given the market share and standing, every move by SBI is tracked by various stakeholder and carries huge
Risk and impact
A) Operational, Capital
B) Compliance , Collatera
C) Reputational, Collateral
D) Reputational, Capital

Question 25
Which of the following has been constituted for focussed attention on managing Compliance risk.
A) Audit Committee of the Baord
B) Compliance Risk Managemnet Committe
C) Compliance Department

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D) Internal Audit Department

Question 26
Which of the following is primarily responsible for compliance
A) Business Unit/ Operating Unit
B) Top Management
C) Board of Directors
D) All of these

Question 27
Which of the following statements on compliance is wrong?
A) Compliance embraces broader standards of Honesty & Integrity
B) Compliance goes beyond what is legally binding
C) Compliance acts as hindrance for business growth
D) All are correct

Question 28
FEMA Compliance is part of

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A) Regulatory Compliance
B) Statutory Compliance
C) Other Compliance
D) None of these

Question 29
Feeding of "Occupation" of the customer is required
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A) in certain categories of CIFs
B) invariably in all CIFs.
C) based up Annual Income as declared by
customers
D) None of these

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Question 30
Which of following is true regarding GCO ?
A) The Global Compliance Officer
(GCO) shall be responsible for
maintaining oversight of the activities of
the Compliance Function across domestic
as well as foreign offices.
B) The Group Compliance Officer
(GCO) shall be the Head of the
Compliance Function in the Bank and
also responsible for maintaining
oversight of the activities of the
Compliance Function across all the
Group Entities.
C) The General Compliance Officer
(GCO) shall be responsible for maintaining
oversight of the activities related to General
Banking
D) The Global Compliance Officer
(GCO) shall be the Compliance Function in
the Bank and also responsible for
maintaining oversight of