Memory recalled questions of recently held

examinations : 2007 & 2008

The following memory recalled questions have been contributed
by various ban em!loyees woring in different bans in "ndia
for the test held during the year 2007 & 2008# The visitors may
read our disclaimer clause$ before maing use of this
information#
%hen &mbudsman's award is acce!ted by the customer$ the ban is to im!lement the award
within : (0 days#
)or!orate *ebt +estructure system is not a!!licable for : ,ingle lender accounts
+eal Time -ross settlement system taes care of which ris : ,ystemic ris and settlement
ris
.oan assets are classified by the bans on the basis of : /y status of security
0nder ,1+213," 1ct 2002 the bans give notice for !ayment of due amount to the borrower
4 owner of charged assets within 55555 days$ otherwise action will be initiated u4s 6(728 of the 1ct
: 90 days
The minimum & maximum !eriod of certificate of de!osit is : 7 days$ 62 months
/ans !rint cheque boos having similar !articulars# The format of cheque is !rescribed by
which 1ct : "t is a !ractice
%hich crossing taes away the feature of assum!tion of defective free title available to the
transferee : :ot negotiable
/earer uncrossed cheque can be !aid to whom : To the bearer
"n ;M+<$ what is the income criteria for borrower's family and borrower's !arents : 1nnual
income from all sources should not exceed +s#6 lac$ each$ se!arately
The increasing foreign exchange reserves in "ndia are costly because : 2unds are idle and
there is fluctuation ris
%ho is a!!ointed to tacle !ublic com!laints against the !ublic authorities : &mbudsman
%hat is :&,T+&: 1 ban's account abroad with another ban
&n$ other than a negotiable instrument$ what is the time !eriod for !ayment of stam! duty$ if
the document is executed outside "ndia : ( months
%ithin !riority sector$ a retail trader other than in essential commodities can be allowed an
advance u! to : +s#20 lac
2):+ 7/8 de!osit can be acce!ted by bans in 5555 currencies : 9
May " hel! you counter is to be !rovided by ban branches other than : ,mall branches
"nterest subvention on ,M3 ex!orters is available to the extent of : 2=
/)TT !rovisions are a!!licable on !artnershi! where the cash withdrawal is : More than +s#6
lac
1 firm is allowed a limit of +s#6#>0 lac at (0= margin# "t wants to avail the limit fully# ?ow
much will be the value of security : +s#2 lac
,tatutory .iquidity +atio !rovisions for bans are as !er ,ection 55555 of 55555 : 2>$
/aning +egulation 1ct 6@>@
%hat is the maximum loan that can be allowed to a dealer in cattle feed 4 !oultry feed$ within
!riority sector : +s#>0 lac
1n :+" can o!en a Aoint account with a resident in case of 555 accounts : :onBresident
&rdinary#
%hat ty!e of charge is a!!licable on loan against term de!osits in a ban : 1ssignment
+/" ee!s on changing re!o 4 reverse re!o rate 4 )++ with the obAective of : +egulation of
liquidity to control inflation
-arnishee &rder is not a!!licable on : 0nBused cash credit or overdraft limit
%hat is the !eriodicity for submission of +B+eturns to +/" : 2ortnightly
The facility of nomination is not available to Trust account because it is 55555 account : :onB
individual
/ans are required to mae !rovision on standard assets at the rate of 0#2C= on 5555 &
5555 accounts : *irect agriculture and ,M3#
1 !erson wants to o!en an account which his wife should be able to o!erate only after his
death# %hat ty!e of account he should o!en : 2ormer or survivor
"n / region$ the re!ly to letters in ?indi is to be given to the extent of 5555 = : 600=
%ithin !riority sector target of >0= of 1:/) or )3&/3$ whichever is higher$ the subBtarget
for weaer section is : 2C=
1 loan to an :/2) for onBlending to individual farmer or ,?- or Aoint liability grou! is
classified as: "ndirect finance to agriculture
"n case of a Aointly o!erated Aoint account$ the nominee can obtain !ayment$ when : none of
the account holder is alive
,-,< scheme is meant for 5555 in 5555 areas : /;.$ rural
)all money de!osit is !art of the 555 sector : &rganised sector
The long term liability to tangible net worth ratio im!lies : .ong term solvency of the firm or
ca!acity of the firm to !ay long term debt#
)urrent ratio im!lies : )a!acity of the firm to !ay current liabilities#
%oring ca!ital requirement of a firm is required to be met through : ,hort term sources and
sur!lus of long term sources over long term uses
%hat was increased by +/" to the extent of 0#C= in the first quarterly review of annual !olicy
in Duly 2007 : )++
,tar series notes relate to : *efective notes
The target for *+" advances is : 6= of !revious year's outstanding loans
%ho cannot become a !artner as !er ,u!reme )ourt Audgement : ?02
%hat is the maximum !eriod for which an account classified as subBstandard$ can remain :
62 months
1 com!any wants to electronically !ay the dividend to large no# of its shareholders$ which
include small amounts also : 3lectronic )learing ,ervices E )redit 73),B)redit8
,ervice fee in case of )-2BM,3 guarantee cover is 555 = of 5555 : 0#7C=$ sanctioned limit
The terms used for hiding money to avoid tax is : Money laundering
1 cheque is written in different handBwritings and different ins : "t will be !aid
&!ening of nonBresident accounts by 55555 has been allowed by +/" : ++/s
/ailment of goods by a !erson to another !erson$ to secure a loan is called : ;ledge
%hen mortgage is created by a !erson by de!osit of title deed orally$ it is called 5555
mortgage : 3quitable
%hich crossing is not a general crossing : %hen name of ban is written within or without
!arallel lines#
/uy now and !ay later is the facility available under : )redit card
1 financial statement that !rovides information regarding where the funds have come and
where these have been used$ is called : 2unds flow statement
%ho can o!en :+3 account : :+"
The minimum ca!ital adequacy ratio im!lemented in "ndia$ by +/" is 5555 = and as !er
/asel "" recommendations it is 555 = : @=$ 8=
1 mandate holder for a current account has died and a cheque signed by him is !resented for
!ayment after his death : The cheque shall be !aid$ if not dated subsequent to date of death or
!rior to the date of mandate#
The true owner of a cheque has been de!rived his right by collection of the cheque for a
different !erson# This is called : )onversion
1 ban branch receives a counterfeit note of +s#6000$ which customer wants bac# %hat the
ban should do : To be im!ounded and not to be returned in any circumstances#
/ans !rovide term loans and deferred !ayment guarantee to finance ca!ital assets lie
!lant and machinery# %hat is the difference between these two : &utlay of funds#
"slamic baning has the features of : )onservative baning
%hich among the Muslims$ )hristians$ /udhists & Dains is not a minority community : Dain
%hen rate of interest is ex!ressed by adAusting the im!act of inflation$ this is called 55555 :
+eal rate of "nterest
2or the !ur!ose of creation of equitable mortgage$ the !lace for de!osit of the title deed is
notified by : ,tate -ovt#
1 !rudent investor maes investment in shares on the basis of : ;riceBearning ratio
%hen the rates are rising$ the growing economy : -ains
/ans can as for de!osit of advance rent for a !eriod u! to : ( years
2or 2):+ 7/8 de!osits$ the exchange ris is born by : /an$ acce!ting such de!osit#
1s !er recent +/"4-ovt# guidelines$ !ensioners can o!en account Aointly with: with s!ouse$ to
be o!erated as either or survivor#
1mount of maximum loan given to micro and small enter!rises are covered under )-2TM,3
scheme : +s#C0 lac
?ousing loan is !art of the !riority sector advance$ with a maximum amount of : +s#20 lac#
The +Breturns are submitted by the bans to +/" on : 2ortnightly basis
1!iculture relates to : /eeBee!ing
1 cheque written in different ins and handwriting is !resented$ for !ayment : it will be !aid if
otherwise in order
%hich of the following forms will be used for allowing exem!tion to a de!ositor aged 96 years
: 2orm 6C -
1n enter!rise will be treated as medium enter!rise !roviding services$ if the investment in
5555 is above +s#2 cr and u! to +s# 55555: equi!ment$ C cr#
/)TT is levied in case of a !artnershi! firm's account$ when the amount of withdrawals :
exceeds +s#6 lac
2or acquiring securities charged to the ban under ,1+213," 1ct$ a notice of 555 days is
required to be sent to the owner of the securities: 90 days
The drawer of a cheque wants that the endorsee should not get a defect free title when he
receives an endorsed cheque# %hat ty!e of crossing would be required : :otBnegotiatiable
crossing#
The crossing on a cheque is required to be cancelled# %ho can do so: *rawer
1 cheque signed by an agent is !resented for !ayment$ after his death# %hat will the !aying
ban do : )heque will be !aid in normal course if it is not dated subsequent to date of his death#
1 ban can sell its :;1 account to another ban$ if the :;1 is held by the seller ban with it
for 5555 month as :;1 : 2>
0nutilised overdraft limit of a borrower is available and a garnishee order is received : &rder
is not a!!licable
0nder ,-,<$ the no# of women self grou! should be 555 = of the total grou!s: C0=
"n educational loan no collateral security or (rd !arty guarantee will be obtained$ if the
amount of loan is maximum u! to: +s#> lac#
:+3 term de!osit can be acce!ted by bans for a !eriod of : 6 to ( years#
"n ;M+< cases$ the amount of margin and subsidy should be 555 = of the 5555 : 20=$
!roAect cost#
1 loan associated with a short duration cro!$ becomes subBstandard after remaining s!ecial
mention account for a !eriod of : two cro! seasons
"nterest subvention of 2= is available to bans from -ovt# when the short term !roduction
loan u! to +s# 5555 lac Ain agriculture is allowed by bans at 5555 = rate of interest to farmer: (
lac$ 7=
0nder liberaliFed remittance scheme what is the maximum amount that can be remitted by a
resident !erson abroad for uns!ecified !erson: G 2 lac in a financial year#
"f an ,," units holds a margin of +s#2C lac and its !roAected sales are +s#>00 lac$ its woring
ca!ital limit will be : +s#7C lac 7margin being more$ the limit will be lower by that amount8#
%eaer !ersons of the society available de!osit and loan services from bans$ which is
called : 2inancial inclusion
)ustomer day is observed by bans on 5555 th of the month : 6C
Minimum no# of days for which term de!osit can be made by bans : 7 days
0nder 6C !oint !rogram of ;rime Minister$ the no# of minority dominated districts in "ndia is
indicated as : 626
2or select ex!orters$ the maximum interest subvention allowed to bans is 555 = but the rate
of interest to be charged from ex!orters should be minimum 555 = : >=$ 7=
1 retail trader in other than essential goods is financed by the ban# %hat is the maximum
amount of such loan that can be classified under !riority sector : +s#20 lac#
%hat ty!e of bench mar is used for lending in bans : /enchmar ;rime .ending +ate#
1 dealer is engaged in sale4distribution of in!uts used in agriculture allied activities such a
!oultry feed 4 cattlefeed# %hat is the maximum amount of loan given to them$ can be classified
under !riority sector : +s#>0 lac#
1!!eal against the award given by the &mbudsman can be made by the ban within 55555
days of date of 5555: (0 days$ recei!t of acce!tance from the customer#
The format of cheque is !rescribed in which 1ct : "t is only a !ractice#
"f a fraud taes !lace in a ban branch# +e!ort is sent to the controlling office on form : 2M+
6
The amount in a cheque is written differently in words and figures and amount written in
words is higher of the two : 1mount written in words will be !aid#
%hile !aying a bearer cheque$ signatures are obtained on the bac side of the cheque#
%hy H : 1s evidence of !ayment
/an note which is mis!rinted by +/" is re!laced by issuing a 55555555 note : ,tar series
"n )*+ categoryB6$ what ty!e of loan accounts are eligible : ,tandard & subBstandard#
,ales 4 debtor ratio is called 55555 ratio# "t indicates 5555 : *ebtorBturnover$ efficiency of
collection of debtors#
)urrent ratio indicates : )a!acity of a firm to meet its current liabilities#
)onversion means : unauthoriFed intervention in the !ro!erty of another !erson
1s !er &fficial language !olicy for / region$ branch target to re!ly in ?indi letter received in
?indi is : 600=
;rovision for standard accounts in direct agriculture and ,M3 accounts is to be made at :
0#2C=
+is weight for bill !urchased under .)$ for ca!ital adequacy !ur!oses is : 20=
%hat is the right of nominee in case of term de!osit that has not matured : To obtain
!remature !ayment and not raise loan against the security of such term de!osit
;reshi!ment credit is available in which ty!e of letter of credit : +ed clause
The quarterly financial results of com!anies and bans are to be declared 4 !ublished under
directions !rovided by : ,3/"
+/" inAects liquidity through : +e!o
)ollateral security in case of ;M+< advances is exem!t u! to : .oan of +s#C lac in case of
industry !roAects !er borrowal account and +s#2 lac for business4servicing !er borrower#
%hat is full form of 2+/M : 2iscal +es!onsibility & /udget Management 1ct
+elationshi! between ban and customer in case of goods left by mistae in custody of the
ban: Trustee & beneficiary
;riority sector target for foreign bans: (2= of 1:/)
:,) !ledged with !ost office with nomination in favour of I<J# /an's claim against these
:,)s : %ill have !riority
.egal status of nominee is that of a : Trustee for legal heirs
M$ a minor admitted for benefits in a firm wants to withdraw from the firm on attaining
maAority# ?ow much time is available to him to do so : 9 months from date of maAority or 9 months
from date of information to him that he was admitted for benefits$ whichever is later#
.oan to minor can be given in the following case 7a8 against */* 7b8 against .") !olicy 7c8 in
the name of minor 7d8 in the name of father : in the name of father
%ho cannot be a !artners 7a8 ?02 7b8 illiterate 7c8 /lind !erson 7d8 com!any : ?02
Money to be de!osited by 1 in the account of /# 1 has informed that / has become insane :
can be de!osited with consent of the family members 7i#e# guardian8
Mortgagee enAoys the income of the mortgaged !ro!erty in case of which mortgage :
0sufructuary
?y!othecation becomes !ledge : when goods are given for !ossession to the ban$ by the
borrower#
%hich scheme has been abolished with introduction of senior citiFen de!osit scheme :
Karishat /ima ;ension <oAna
1n :;1 account is restructured on Dune (0$ 200( with the !rovision that first instalment shall
be due on *ec (6$ 200(# 1mount de!osited on *ec (0$ 200(# The account will become standard$
if instalments are regularly de!osited: *ec (6$ 200>#
%hich ty!e of fraud case is not to be re!orted : Theft and burglary#
There is excess cash with the cashier while closing the cash balance in the evening# "t is to
be de!osited in : ,undries account 7credit balance8#
%hich document is required to be attested 7witnessed8 7a8 mortgage deed 7b8 !ledge
agreement 7c8 ?y!othecation agreement : Mortgage deed
:o# of ban branches in "ndia is 7a8 above >0000 7b8 above C0000 7c8 above 90000 7d8 above
70000 : 1bove 70000
1$ / and ) want to o!en a Aoint account with the !rovision that after death of any of them$ the
money should not be !aid to any legal heir$ what mode of o!eration should be o!ened : 3ither or
any of them
3)/ can be raised under automatic a!!roval by 7a8 com!anies 7b8 firms : )om!anies
/orrowing !ower of /oard of *irectors is described in: 1rticles of 1ssociation#
*octorine of 0ltravires borrowing relates to : /orrowing by a com!any for an activity$ which it
is not authoriFed to undertae as !er its Memorandum of 1ssociation
.oan of +s#2C000 has been obtained by the de!ositor against an 2*+# Minor is to be
a!!ointed nominee in the account : )an be done after re!ayment of the loan# Terms of de!osit
account will not be allowed to be changed during currency of the loan#
The no# of members in a ,?- in ,-,< in normal cases : 60B20
1uthorised ca!ital is +s#60 lac# ;aid u! ca!ital +s#9 lac# The loss of !revious year is +s#6 lac#
.oss in current year is +s#2 lac# The tangible networth is : +s#( lac
:et woring ca!ital is +s#80000# )urrent ratio is (:6# The current assets are : 620000
)*+ in case of ,M3 account 7which is not correct8 7a8 ,M3 financed by any ban for any
amount 7b8 for cor!orate account$ financing by one ban 7c8 for cor!orate account from many
bans for amount above +s#60 lac : )
+ight to retain goods is called : .ien
2or obtaining loan against shares$ the )harge on shares : .ien
1 director of the ban wants to raise loan from your ban against 7a8 2*+ of other ban 7b8
share of same ban7c8 surrender value of .ife ;olicy# .oan can be given against : ,urrender value
of .ife ;olicy#
/ill of lading$ +ailway +ecei!t are negotiable instruments under 7a8 :" 1ct 7b8 ,ec ( of
Transfer of ;ro!erty 1ct 7c8 ,ec 6(7 of Transfer of ;ro!erty 1ct 7d8 ,ale of -oods act : )
Lee!ing goods in safe custody is as !er !rovisions of 7a8 :" 1ct 7b8 "ndian ;artnershi! 1ct 7c8
"ndian )ontract 1ct : )
:o dues certificate in case of agricultural advances is exem!ted u! to a loan of: +s#C0000
.iability of a co!arcener in case of loan raised by ?02 is : +estricted to his share in ?02
!ro!erty4assets
"n L<) guidelines$ the small account where sim!le L<) is a!!licable are those account
where the amount de!osited in the account is restricted to 7a8 +s#C0000 7b8 +s#6 lac : +s#6 lac
"n case of ,M3s$ the registration is mandatory in case of 7a8 medium enter!rises in servicing
7b8 small manufacturing enter!rises 7c8 manufacturing medium enter!rises : )
%hat is the maximum amount of loan for obtaining guarantee under )-TM,3 of ,"*/" :
+s#C0 lac
1 com!any has been sanctioned cash creditB!ledge limit# "nternal auditor finds that charge
has not been registered with +egistrar of )om!anies in time# "n how much time it is to be done :
"n case of !ledge$ not required#
.oan system of credit delivery is not a!!licable in case of : ,oftware industry
To sell an :;1$ the account must remain in the boos of seller ban : for 2> months as :;1
&ne of these is an indirect rate 7a8 one G M +s# (@#C9 7b8 one !ound M +s# 8@#C9$ 7c8 one yen
M +s# 0##(0 7d8 +s#600 M G 2#90 : *
%hich crossing is not recogniFed by :" 1ct 7a8 ,!ecial 7b8 !ayee's account 7c8 not negotiable
: /
%hich among the following can o!en an +esident 2oreign )urrency account 7a8 :+" 7b8
+esident 7c8 3rstwhile :+" now resident 7d8 none : )
1 loan document is signed by one !artner on Dune 6C$ 2007$ by 2nd !artner on Dune 26 and
by (rd !artner on Dune 2@# The !eriod of limitation will start from : Dune (0$ 2007
"n )1M.3,$ the word ) stands for : )a!ital 1dequacy +atio
1 !artner wants to retire from the firm I<J# ?e has to 7a8 get consent of other !artners 7b8
has im!lied authority to retire 7c8 has to give !ublic notice 7d8 can retire when desired by him by
giving notice to other !artners : 1
,ervice 1rea a!!roach guidelines withdrawn by +/" exce!t of -ovt# s!onsored ,cheme as
!er recommendations of : K, Kyas )ommittee
-ovt# shareholding in !ublic sector bans cannot be below : 7a8 ((= 7b8 C6= 7c8 7>= 7d8 600
: /
2or micro & small enter!rise$ the value of 55555 is excluded while calculating the value of
!lant and machinery or equi!ment : .and & building#
+egistration of !artnershi! firm is not com!ulsory but bans !refer registered firms because
7a8 they can file suit against them 7b8 creditors can file suit against them 7c8 they can file suit
against their debtors : )
The limitation !eriod u4s 6(8 of :" 1ct begins from : *ate of cause of action
&mbudsman can ignore the case of com!laint where 7a8 advocate of a!!licant has a!!ealed
7b8 com!laint is of frivolous nature : /
)om!any increases it networth by revaluation of assets by +s#C0000# 3xisting *ebt equity
ratio was 2:6# the new debt equity ratio would be 55555$ if long term liabilities are +s#80000 : 0#@:6
"f /)TT is not de!osited on time$ the !enalty for nonBde!osit is : +s#6000 !er day for !eriod
of default N 6!#m# interest
/)TT is chargeable in the account of a !rivate limited com!any if the amount of cash
withdrawal is : more than +s#6 lac#
1 cheque is issued by a com!any as O!ay yourselvesP# 1 cler from the com!any comes and
signs on behalf of the com!any and requests for !re!aration of a demand draft : )annot be
!re!ared#
"nternal rate of return is : 1 discount rate$ at which the net !resent value of a !roAect is Jero#
;M+< age limit of generalQQQ##and for ,),T 5555 768R(C and 68R>C8
0nder ,-,< ;rogramme$ the minimum number of ,?- grou! of women to be formed : C0=
,ubsidy under 1griclinic 1gribusiness is QQ##=or general and QQQQ#= for ,)4,T 72C=
and ((#(=8
,mall ,ervice industry investment in !lant and machinery : above 60 lahs but u!to 2 crore
?y!othecation defined under which act : ,1+213," 1ct#
:!a )an /e ,old /y Lee!ing 2or ?ow Many *ays : 2 <ears
+emittance of 2):+7/8 !roceeds to """ ;arty abroad E "f 1* satisfied$ these can be made on
the request of the de!ositor#
/ans can acce!t :+3 de!osit from 6 year to ( year and can acce!t beyond ( years also but
the rate of interest !ayable beyond ( years
)-2TM,3 80= coverage not available for : ,)4,T
&versold !osition will give loss when the value a!!reciating
,engu!ta committee related to : ;rivate sector contribution to defence sector
+adharishanan )ommittee related to : agriculture indebitedness#
The committee recommended concurrent audit : -?&,? )&MM"TT33
)++ & /an rates are :7#C0 & 9#00
+e!o rate isQQQQ##and reverse re!o rate isQQQQQ : 7#7C= & 9#00
+estructured a4c classified standard if the o!eration in the account is satisfactory for a !eriod
of : one year
"n case of failure of a customer to meet its commitment in settling his dues in time will come
under which ty!e of ris : ,ettlement +is
%hich a!!roach does not &!eration +is : internal ris assessment based
%hen an account becomes :;1 and realiFable value of security is 5555 the account is
directly treated as loss asset : S60 =
+&" on adhoc ;). : ,ame +ate &f :ormal ;).
0n +egistered ;artnershi! 2irm B %hat is the re!ercussion: 2irm can sue the others
1 cheque !assed in a current account of an 0n +egistered 2irm having insufficient balance
allow &* in the account without any instructions from the 2irm# /an has an 2*$ whether ban
can recover the amount of &* allowed in the account from the !roceeds of 2*H : <es
%hether Minor can nominate H no
T*, not deducted what is the !enalty and for what !eriod: /an to !ay the amount with
interest T 6= !#m# sim!le
Mr#1 withdrew cash from the following three accounts maintained in your ban: ,/ E
+s#600$0004B$ )urrent E +s#90$0004B$ &* E >0$0004B# %hat is the amount of /)TT to be deducted:
904B
%hat charge to be created for demat shares with ban as security : .ien
Microsoft has instituted its base4 facility office at: ?yderabad
"f the date under .) is mentioned as &n or about (0#09#2007 E shi!ment will go within or
when## 7C days before and C days after (0#9#078
%hat is the !osition of a :ominee H: The money will be !aid to nominee after death of
de!ositor
Methodology of %aiver4+emission of loan of *irector of the ban: 1fter !ermission of +/"
0nder .+, how much money in 000 a resident can remit in year : 0, * 200000 in a financial
year#
2or the !ur!ose of Medical Treatment$ how much amount can be remitted freely : 0,*
600000
?ow much amount a com!any can invest abroad : >00= of net worth