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Test 1 CBOA Class October 2023

Deposit Policy 2023-24, Term deposit consolidated guidelines (163/23),

NND ( 29,165 & 485 / 23 ), CA Master Circular (496/23) Interest rate on
domestic and NRO deposit (631/23) Interest rate on NRE term deposit
(632/23) & RBI master directions on Deposits updated till 16th Sep 2022
(last update) New SB Products. (Contains 81 questions)

1. Which is not correct with Regard to SB Account? 1)Political Parties registered with
Election Commission of India under the election symbols Act 1968 can open SB
account and get interest 2)Banks can open SB account and pay interest for
Companies licensed by the Central Government under Section 8 of Companies Act,
2013 or Section 25 of Companies Act, 1956 or under the corresponding provision in
the Indian Companies Act, 1913 and permitted not to add to their names the word
“Limited‟ or the words “Private Limited‟. 3)PAN card is not considered as a Officially
Valid Document (OVD) for opening SB account. 4)If customer provides OVD
documents which do not contain updated address, updated OVD with current address
to be provided within a period of 3 months a) 1&2 b) 3&4 c) 1 only d) 4 only e) 2 only

2. Which is NOT correct with regard to SB account? a)Minimum deposit and with drawal
is Rs 10 b) Service charges will be collected if number of withdrawal including
alternate channel debit exceed 50 per half year c) Canara Basic Savings Bank Deposit
Account (BSBD) is a fully KYC complaint account d)Prisoner in jail can open Small
SB deposit Account e)A foreign national who has come to India for employment can
open a domestic SB deposit account

3. Which one of the following is a correct guidelines? a) Foreign Student who has come
to India can open NRO SB b) Foreign tourist visiting India can open NRO SB c) A
resident Indian married a foreign national and the foreign national has come to India
for permanent Stay and this foreign national can open a normal domestic SB account
d) a& b are correct e) a to c all are correct

4. For borrowers, whose OD/OCC exposure from the banking system is less than -- cro,
there is no restriction on opening of current accounts by banks, subject to obtaining
an undertaking from such borrowers that they shall inform the bank, as and when the
credit facilities availed by them from the banking system reaches---

5. If a NRE Term deposits matures and proceeds are unpaid, the amount left unclaimed
with the Bank shall attract interest from the date of maturity till the date of payment
or reinvestment at a) the contracted rate of interest on the matured deposit or SB
interest which ever is less b) rate of interest as applicable to SB account c) The
contracted interest of the matured term deposit e) None of these

6. If a term deposit matures on a holiday which one is correct with regard to payment of interest
for the holiday? 1) Simple interest shall be paid at the originally contracted rate on the original
principal deposit amount for the Holiday in respect of Fixed Deposit 2) In case of reinvestment
of Term deposits and recurring deposits, simple interest shall be paid at the originally
contracted rate for the holiday on the maturity value 3) For all types of deposits
SB interest prevailing on the date of maturity will be paid for the holiday on the principal
amount 4) No interest will be paid for the holiday. A) 1 only b) 2 only c) 1 & 2 d)3 only

With Best Wishes from L Jagennath

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7. HO Cir 767/22 gives the SB interest rates for various slabs wef 21.12.22. What is the
minimum and maximum interest rate for SB deposit in our bank? 2.90% and 4%

8. Which is not correct with regard to penalty for pre closure of domestic term deposit as
per HO Cir 631/23 1) A penalty of 1.00% shall be levied for premature closure, part
withdrawal, premature extension of Domestic & NRO term deposits of less than Rs.2
Crore that are accepted /renewed on or after 12.03.2019 excluding that of employees
/ ex employees 2) A penalty of 1.00% is waived in case of premature closure/part
withdrawal/ premature extension of Domestic/NRO CALLABLE term deposit of Rs. 2
Crore & above that are accepted/renewed on or after 12.03.2019. 3) A penalty of
1.00% is applicable on Term Deposits under Capital Gains Account Scheme-1988,
which are prematurely converted/withdrawn/closed, irrespective of the size of the
deposit amount. 4) No interest will be payable on Domestic/NRO term deposits
prematurely closed/prematurely extended before completion of 7th day from the date
of Opening 5 ) Penal cut is waived for NRO deposits that are prematurely closed for
the purpose of reinvestment in NRE term deposit. a) 1 to 5 all b) 1 to 5 None c) 1 &
5 d) 5

9. How many slabs are there in domestic and NRO term deposit int rate as per HO Cir
631/23?

10. How many slabs are there in NRE term deposit interest rate as per HO Cir 632/23?

11. Which is NOT correct with regard to Non Callable Term deposit as per HO Cir
631/23? A) Minimum amount is above Rs 15 lac b) Can not be accepted from
Individuals and HUF c)Non callable deposit of above Rs 15 lac to less than Rs 2 cro
can be accepted for 46 days and above and for less than 3 years d)Loans against
Non Callable deposit is permissible

12. If branches are desirous to quote rates other than the card rate for Single bulk deposit
of Rs 2 cro and above to less than Rs 10 cro branches to get permission from
a)Integrated Treasury Wing b)S&R Wing c) Respective Circle Offices d) Respective
ROs e) None of these

13. Who is the authority to get a branch designated to accept bulk deposit of Rs 10 cro
and above?
14. In respect of deposits of Rs.--- cro & above, a confirmatory letter in the form of a
“Thanks giving” letter will be sent by the Bank to the beneficiary by Registered
Post/Reputed Courier as well as e-mail and SMS wherever email ID and mobile
number are available, giving necessary details.

15. In case of loan/overdraft facility of Rs.--- Crore and above against the term deposit,
necessary due diligence shall be ensured by the branches.

16. In case of loan/overdraft facility of Rs 1 cro and above and less than than Rs –Rs 10
cro against the term deposit, necessary offsite monitoring should be done at the
BS&IC Section, Circle Office and for loans of Rs 10 cro and above by-------

With Best Wishes from L Jagennath

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17. For non deduction of tax at source customers to give 15 G or 15 H along with PAN.
If PAN is not available then which is correct? a) Form 60 to be accepted and TDS need
not be deducted b) Form 60 can be accepted and to be sent to IT department on
line on a quarterly basis c) Proof of having applied for PAN can be accepted TDS
need not accepted. d) None of these

18. Funds can be transferred from the NRO account to the NRE account of the customer
upto a maximum of --- million USD or its equivalent in other currencies in a FY
subject to production of Form 15 CA and form 15 CB by the customer.

19. Which is correct with regard to minimum amount required for opening FCNR deposit?
a) USD 500 b) Euro 500 c) GBP 500 d) AD 500 e) All are correct f) a to c only are
correct

20. The interest ceiling on FCNR (B) deposits and calculation of interest is as per RBI
guidelines and linked to a) LIBOR b) USD rate c) Overnight Alternative Reference
Rate d) None of these

21. Which is not correct with regard to payment of interest on FCNR deposit? a) In case
of FCNR [B] Fixed deposits accepted for a period of exactly one year, simple interest
is payable only on the date of maturity. In other words, in case of such FCNR [B] FDRs
accepted for a period of one year, interest for the entire year [365 or 366 days, as the
case may be] should be computed without any compounding effect and no payment
of interest should be made before completion of one year from the date of investment
b) In case of FCNR [B] Fixed Deposits accepted for more than one year, simple
interest can be paid at intervals of 180 days each and thereafter for remaining number
of days. c) In the case of FCNR (B) Fixed Deposits where the depositor wishes to get
monthly / quarterly interest, the same should be paid at discounted value. D) In case
of FCNR (B) KDR accounts, interest will be paid on maturity with compounding effect
at the interval of 180 days. e) None of these

22. In the case of renewal of Overdue FCNR deposit which is not correct? a) For the
overdue period interest to be paid on RFC SB rate or the contracted FNCR deposit
rate which ever is less and the deposit can not be renewed from the overdue date
irrespective of the overdue period b)If the overdue period is less than 14 days, it can
be renewed from the maturity date & the rate of interest payable shall be the rate of
interest for the period of renewal as prevailing on the date of maturity or on the date
of renewal, whichever is lower c) If the overdue period is more than 14 days simple
interest at RFC SB rate for the respective currency on the date of renewal or the
contracted rate on the matured FCNR deposit which ever is lower d) None of these

23. What is NOT relevant with regard to opening joint NRE and FCNR deposit by NRIs
with Resident Indians? a) Maximum Joint depositors only 4 b) with Close relatives as
defined in Indian Company Act with No I is NRI with Former or Survivor basis c) Money
belonging resident joint account holder can not be credited in this account d)The
resident joint account holder can operate the operative account only under a mandate
given by NRI e) After the death of NRI it becomes a Resident Account. f) all are
relevant

With Best Wishes from L Jagennath

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24. Which one of the following is NOT a relevant guidelines for Residents opening Joint
Resident accounts with NRIs? 1)Along with NRI close relative and the resident will be
No I 2) Either or Survivor basis c) For all purposes it is treated as resident account d)
Money belonging to NRI should not be credited to this account e)None of these

25. Additions and deletions of names of depositors are permitted with the consent of all
the depositors provided a) NO I in the original deposit should continue in the new
deposit. b) Any one of the original depositor to continue in the new deposit c) No I in
the old deposit should be NO I in new deposit also d) None of these

26. If FCNR/RFC term deposits remain overdue for a period of ---- years from the date of
maturity of the deposit, at the end of the ---year, branches shall convert the balances
lying in the foreign currency into Indian Rupee at the exchange rate (TT Buying)
prevailing as on that date and place the converted amount in overdue INR deposit. a)
10 and at the end of 10th year b) 3 and at the end of the 3rd year c) 5 and at the end of
the 5th year d) Banks should not covert the deposits into INR with out the consent of
the depositor.

27. In respect of foreign currency denominated deposits like RFC-SB, RFC-CA, or any
other FC deposit with no fixed maturity period, if the deposit remains inoperative for a
period of ------ years, branches shall give three months‟ notice to the depositor at his
last known address and convert the deposit from the foreign currency into Indian
Rupees, at the end of the notice period at the prevailing exchange rate (TT Buying) a)
10 years b) 3 years c) 2 years d) 5 years

28. April 1, 2012, Banks should not make payment of Cheques/Drafts/Pay

Orders/Banker's Cheques bearing that date or any subsequent date, if they are
presented beyond the period of three months from the date of such instrument as per
NI Act. True or False

29. Before classifying an account as inoperative bank to send revival notice to the
customer along with the charges to be debited for those inoperative accounts. If
customer reply to the bank giving reasons for non operating the account branches
should continue classifying the same as an operative account for ---- more year within
which period the account holder may be requested to operate the account. a) Can
not be continued as operative account b) one year c) 2 years d) None of these ]

30. If there is no response to the revival notice and if the balance is less than Rs ----
accounts to be closed.

31. Under the provisions of BR Act the amount to the credit of any account in India with
any bank which has not been operated upon for a period of ten years or any deposit
after maturity or any amount remaining unclaimed for more than ten years shall be
credited Depositors Education Awareness Fund (DEAF), What is the periodicity?

With Best Wishes from L Jagennath

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32. Which is NOT correct with regard to accounts of blind persons? 1) Branches to offer
all the banking facilities to the visually challenged persons without any discrimination.
2) Blind persons can issue cheques to third parties also 3) In case a visually impaired
customer makes cash withdrawals at the Bank then the payment must be made in the
presence of another bank employee/ officer without any outsider witness. 4)Outside
witness is required only when the visually impaired customer requests that such
witnesses be present Ans a) 1 to 4 all are not correct b) 2 c) 3 d) 1 to 4 none

33. Capital Gains deposit will attract a penalty of --- for pre closure irrespective of the size
of the deposit. A) 1% b) 2% c) Premature closure not permitted d) None of these.

34. The additional interest for Can Tax Saver for Senior Citizen general public,
employees & Sr Citizen ex employees respectively are a) 0.50%,1%,1.50% b) 0,50%,
1%, 1% c) No additional interest for Can Tax Saver for any category. D) None of these.

35. For Capital Gains account what is the additional interest available for Employees?
A)1% for employees b) 1% for Ex employees c) 1.50% for Sr citizen ex employee d)
All of these e) None of these

36. The additional interest for term deposit payable to the spouse (the spouse is a senior
citizen) of the deceased employee/deceased ex employee is a) 1.50% b) 1% c) As
applicable to general Public d) None of these

37. For Senior citizen domestic term deposit (including RD) for general public the
additional interest rate of 0.50% is provided by Canara Bank only if the deposit is for
--- days and above and the amount should be less than Rs ----. A) 180 days & Rs 2
cro b) Any slab and any amount c) 1 year and less than Rs 2 cro d) Other than the
options given

38. What is the additional interest payable for Senior Citizen ex employee term deposit of
Rs 20 lac accepted for 90 days? A) No additional interest since deposit is less than
180 days b) 1% more than general public c) 1.50% more than general public d) None
of these

39. The minimum period of acceptance of fresh domestic term deposit /NRO deposit of
Rs 2 lac in our bank is a) 7 days b) 15 days c)45 days d) can not be accepted

40. What is the minimum period of renewal of a domestic/NRO deposit of Rs 3 lac in

our bank? a) 7 days b) 15 days c) 46 days d) None of these

41. Maximum number of Joint depositors in Capital Gains deposit (both SB and term
deposit) is a) 4 b) No restriction c) More than 4 permission from MIPD d) None of these

42. Who is the authority to transfer term deposit from one branch to another within the
same city as well as outside the city as per the request of depositor HO Cir 710/23?

43. Who can not open NND account as per HO Cir 165/23? a)Partnership firms b) Clubs
& Associations c)Proprietary Concerns d) Companies e) a to d all

With Best Wishes from L Jagennath

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44. What is the minimum fall back wages in all areas if the agent collects the prescribed
amount in a month or in a quarter?

45. As per HO Cir 485/23 how many slabs are there in interest rate for NND?

46. For loans of above Rs 2 cro to depositors against our domestic term deposit the
required margin is 10% and interest rate to be charged to the loan is 1% above the
deposit rate as per HO Cir 621/23. Who is empowered to reduce interest rate for such
loans as per HO Cir 624/23? a) RO Head CAC and above authorities b)GM/CGM CO
CAC and above authorities c) Circle Head CAC and above authorities d) CGM/GM
HO CAC and above authorities

Questions on RBI Master direction on deposits Updated till Sep 2022 (last
updation)

47. The periodicity for crediting SB interest by any bank in India as per RBI guidelines is
a) first day of Calendar quarter b) Quarterly intervals c) 1 st Feb,1st May, 1st Aug and
1st Nov d) quarterly or lesser intervals

48. As per RBI master direction on deposits differential interest rate for SB deposit can be
paid by a bank provided the balance exceeds a) Rs 50 lacs b) Rs 25 lac c) Rs 10 lac
d) Rs 1 lac

49. For calculating interest on SB accounts as per RBI notification banks to take a) daily
product b) daily minimum product c) Monthly minimum product d) Monthly product e)
Minimum balance between 5th to Last day of the month

50. What is the amount of cheque that is mandatory for Positive pay? A) Rs 50,000 &
above b) Rs 5 lac and above c) Rs 10 lac and above d) None of these

51. As per RBI master Circular to earn interest in NRO and domestic term deposit
Minimum tenor of the deposit is ------ and minimum amount is Rs ----. A) 15 days &
Rs 1000 b) 7 days and Rs 5 lac c) 7 days and Rs 1000 d) None of these

52. As per RBI guidelines banks have to necessarily permit premature closure of term
deposit accepted from individuals (single or Joint) if the amount is Rs --- lac and below
a) Rs 2 cro b) Rs 1 cro c) Rs 50 lac d) Rs 5 lac e) Rs 15 lac

53. What is the additional interest that can be offered to the term deposits of Senior Citizen
by any bank in India as per RBI master direction on interest rate on deposits? A)
0.50% b) 1% c) 1.50 d) None of these.

54. To earn interest on NRE term deposit the minimum period is ---, for NRO deposit it is
--- and for FCNR deposit it is--- by any bank in India. A)1 year, 7 days and 1 year b) 1
year, 7 days & 365 days c) Banks discretion d) None of these

55. Which one of the following interest rates are specified by RBI and not left to the
discretion of the banks concerned? A) NRE Savings bank deposit, b) Domestic Term
Deposit c)Domestic SB deposit d) Loans to distressed persons upto Rs 1 lac e) None
of these.

With Best Wishes from L Jagennath

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56. As per RBI guidelines interest rate for NRE and NRO deposit (both SB and Term
deposits of similar maturity ) are to be: a) the same that of domestic deposit rates. b)
equal to or more than domestic deposit rate c) equal to or less than domestic deposit
rate d) at the discretion of the bank. C

57. Banks in India have to have same tenor for which type of deposit? a) Domestic b) NRO
c) NRE d) FCNR e) None of these

58. What type of FCNR deposit banks in India can open for NRIs? 1) Current account
under FATCA 2) SB account for Long Term Visa holders of Bangladesh 3) Term
deposit (Fixed and Reinvestment) other than RD 4) Term deposit including RD a) 4
b) 1 to 5 all c) 1 d) 3 e) 1 to 3 all

59. Differential interest rate for NRO/NRE/domestic term deposit can be paid by a bank
(other than RRBs) when the amount is Rs--- and above as per RBI guidelines a)
Above Rs 2 cro b) Rs 2 cro and above c) Above Rs 10 cro d) Rs 10 cro and above

60. As per RBI guidelines bulk deposit for Regional Rural banks means a) Single rupee
term deposit of Rs 2 cro and above b) Single rupee term deposit of Rs 1 cro and above
c) Single rupee term deposit of Rs 15 lac and above d) Single rupee term deposit of
Rs 50 lac and above

61. Form 15G/15H obtained from the customers are to be preserved for how many years?
a) 6 b) 7 c) 5 d) 10

62. Form 60 obtained from customer on 20th OCT 2022. This has to be preserved till
a)20th OCT 2028. b) 19th Oct 2028 c) 20th March 2028 d) 31st March 2029 D

63. What is the amount of term deposit that can be paid in cash? A) Less than Rs 20000
including interest b) up to and inclusive of Rs 20000 including interest c)less than Rs
50000 including interest d) upto and inclusive of Rs 50,000 with interest

64. The above is defined in Sec ---- of --- Act

65. If Sec 269 T is not complied with penalty is the amount paid in cash. This is defined
in --- Sec of --- Act

66. Find out the odd statement: a) All DDs to be issued with Account payee crossing only
b) All DDs of Rs 20,000 and above are to be issued with Account Payee Crossing only
c) Cash DDs can be permitted upto Rs 49,999 excluding commission & GST c) NEFT
for walk in customers to be permitted by accepting cash upto and inclusive of Rs
50,000

67. The deposits of which of the following banks not covered by Deposit Insurance
&Credit Guarantee Corporation of India (DICGC) ? a)All commercial banks including
foreign banks operating in India b) Local area baks c) Regional Rural Banks d)Co
operative banks e)Primary Co operative Societies

With Best Wishes from L Jagennath

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68. Which are the deposits not covered by DICGC? 1)Deposits of Foreign Govt 2)
Deposits of Central and State Govts of India 3)Inter bank deposits 4)Deposits of State
Land development Bank a) 1 b) 1 to 4 all c) 3 d) 4

69. Mr A is having a deposit of Rs 5 lac in Canara Bank branch X and another Rs 5 lac in
his name and in his wife name he being No I with branch Y of Canara Bank. He will
get insurance cover for Rs 5 lac only. True or False

70. Mr B is having a reinvest deposit of Rs 4 lac in your branch. The accrued interest date
is Rs 15,000. He wants to know how much of his deposit will be covered under
DICGC?

71. Mr X is having a deposit of Rs 5 lac in his name and another Rs 5 lac in his name in
Bank Y. He wants to know whether both the deposits will be covered under DICGC?

New SB Products

72. What is the Product Code for Canara SB Select? 147

73. What is NOT Correct with regard to Canara SB Select? a) MAB in Metro is Rs 20.000
b) Unlimited free locker operations c) 25 cheque leaves free in a Financial Year d)
NPCI insurance cover is available if one transaction has been done in the last 30 days
with the Rupay Platinum debit card attached to the account e) All options are correct

74. What is the maximum penalty if MAB not maintained by different category of branches
in Canara SB Select? Rs 65

75. What is the product code for Canara SB FCRA? (Foreign Contribution Regulation
Act)

76. Which is Not Correct with regard to Canara SB FCRA? a) Funds to this account to
be credited only from SBI Sansad Marg New Delhi branch. B) No other Credits are
permitted c)Withdrawal of Rs 20,000 and above by account payee cheque, NEFT /
RTGS and DD only d)FCRA registration to be updated in CH 131 e) a to d none

77. When the period of TOD in Canara Premium Pay roll Account, exceeds --- days
documents to be taken.

78. What is the age criteria for opening Canara Premium Payroll Account?

79. For NPCI insurance one Rupay Platinum debit card induced transaction at any PoS
/E-com both intra and inter bank transaction within ---- days prior to the date of
accident including accident date should have taken place in Premium Payroll
accounts.

80. What is the instant TOD limit permitted for Canara Jeevandhara Platinum?

81. Free Personalised Cheque leaves to Jeevandhara Diamond ----

With Best Wishes from L Jagennath